Toronto-based BlackRock Asset Management Canada Ltd. launched a quarterly reference guide on Tuesday of exchange-traded funds (ETF) investment strategists and managers.
First published five years ago in the U.S., the guide, called iShares Connect: Canada Guide to ETF Investment Strategies, will help financial advisors, broker/dealers, consultants, program participants and investors to identify investment strategists and managers who specialize in ETF portfolio construction.
“We’ve seen a huge amount of growth and interest in this area in the U.S. and what we wanted to do was kind of mimic at least some of that growth up here in Canada,” says Ted Bader, director, iShares, business development, BlackRock Canada. “A lot of interest is being put towards ETFs and a lot of people are using them. However, what we think is the next evolution is a lot of people are looking at how to use managed ETF portfolios.”
Currently, the guide includes 11 investment strategists with $3 billion in assets under administration and 23 portfolios. The strategies highlighted in the guide represent a variety of different geographic regions and investment tactics.
“[These are] completely independent third-party members,” says Bader, “and people run everything from a Canadian dividend portfolio to a global asset allocation to an emerging markets portfolio to a long/short strategy using ETFs.”
To qualify for the guide the management companies and their portfolios must meet the following criteria: 75% of the portfolio must consist of ETFs, excluding cash; portfolios must have a minimum of one year performance data; the portfolio cannot be structured or offered as a prospectus-qualified mutual fund in Canada; the company must be registered to do business in Canada.
The guide will be available free of charge on the iShares website
“It’s for advisors [and] investors alike,” says Bader. “We just wanted to be a conduit and show people that there is a category here and if they’re looking for these kinds of management styles they can find it.”