Investors Seeking to Restore Low Risk and the Potential for Yield
Turning to Fixed Income ETFs in Record Numbers
NEW YORK & SAN FRANCISCO--(BUSINESS WIRE)--
Global asset flows for exchange traded products (ETPs), and fixed income
exchange traded funds (ETFs) specifically, hit record levels during the
month of January, illustrating a continuing market “revolution” globally
as investors increasingly turn to fixed income ETFs in an effort to help
restore investment yield to their portfolios.
According to the BlackRock Investment Institute’s latest “ETP Landscape”
report released today, the global exchanged traded product (ETP)
industry had its best month of January ever with $34.1 billion of net
inflows, representing a 144% increase in inflows over the previous
record set in January 2011 and up 116% from December 2011. Also,
according to the ETP Landscape, fixed income ETPs set a new global
monthly record, attracting $9.0 billion in January 2012 up from the
previous monthly record set of $6.7 billion set in January 2009.
“In this challenging environment with sustained levels of low yield, now
more than ever investors are looking for new ways to generate income,”
said Peter Fisher, Senior Managing Director and head of BlackRock’s
Fixed Income Portfolio Management. “We see a quiet revolution building
in the asset class as more and more investors learn how to use fixed
income ETFs to build portfolios that combine low risk with the potential
for yield.”
Over the last decade, fixed income ETFs have helped democratize access
to fixed income markets by creating new centers of transparent liquidity
and offering investors a cost efficient way to express a view on
specific fixed income sectors.
“At iShares, we created the first fixed income ETF nearly ten years ago
to offer efficient access to a wide range of fixed income markets and
we’re thrilled to see institutional and retail investors embracing the
benefits of these products,” said Matt Tucker, Head of iShares Fixed
Income Investment Strategy. “Passive fixed income ETFs are essential
building blocks of a portfolio and make particular sense during this
period of historically low yield.”
iShares plans to continue to expand its fixed income product offerings
later this month when it is scheduled to launch six new fixed income
ETFs in the U.S., including the iShares Barclays U.S. Treasury Bond Fund
(ticker: GOVT), the iShares Barclays CMBS Bond Fund (ticker: CMBS), the
iShares Aaa – A Rated Corporate Bond Fund (ticker: QLTA), and three
corporate sector bond funds (financials, ticker: MONY; industrials,
ticker: ENGN; and utilities, ticker: AMPS).
About BlackRock
BlackRock (NYSE:BLK) is a leader in investment management, risk
management and advisory services for institutional and retail clients
worldwide. At December 31, 2011, BlackRock’s AUM was $3.513 trillion.
BlackRock offers products that span the risk spectrum to meet clients’
needs, including active, enhanced and index strategies across markets
and asset classes. Products are offered in a variety of structures
including separate accounts, mutual funds, iShares®
(exchange-traded funds), and other pooled investment vehicles. BlackRock
also offers risk management, advisory and enterprise investment system
services to a broad base of institutional investors through BlackRock
Solutions®. Headquartered in New York City, as of
December 31, 2011, the firm has approximately 10,100 employees in 27
countries and a major presence in key global markets, including North
and South America, Europe, Asia, Australia and the Middle East and
Africa. For additional information, please visit the Company's website
at www.blackrock.com.
iShares is the global product leader in exchange traded funds with over
460 funds globally across equities, fixed income and commodities, which
trade on 19 exchanges worldwide. The iShares Funds are bought and sold
like common stocks on securities exchanges. The iShares Funds are
attractive to many individual and institutional investors and financial
intermediaries because of their relative low cost, tax efficiency and
trading flexibility. Investors can purchase and sell shares through any
brokerage firm, financial advisor, or online broker, and hold the funds
in any type of brokerage account. The iShares customer base consists of
the institutional segment of pension plans and fund managers, as well as
the retail segment of financial advisors and high net worth individuals.
Carefully consider the funds' investment objectives, risk factors,
and charges and expenses before investing. This and other
information can be found in the funds' prospectuses, which may be
obtained by calling 1-800-iShares (1-800-474-2737) or by visiting www.iShares.com.
Read the prospectus carefully before investing.
Investing involves risk, including possible loss of principal.
Bonds and bond funds may decrease in value as interest rates rise. An
investment in the Fund(s) is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency. There can
be no assurance that an active trading market for shares of an ETF will
develop or be maintained.
This material represents an assessment of the market environment at a
specific time and is not intended to be a forecast of future events or a
guarantee of future results. This information should not be relied upon
by the reader as research or investment advice regarding the funds or
any security in particular.
Transactions in shares of the iShares Funds will result in brokerage
commissions and will generate tax consequences. iShares Funds are
obliged to distribute portfolio gains to shareholders. Shares of the
iShares Funds may be sold throughout the day on the exchange through any
brokerage account. However, shares may only be redeemed directly from a
Fund by Authorized Participants, in very large creation/redemption units.
The iShares Funds ("Funds") are distributed by SEI Investments
Distribution Co. ("SEI"). BlackRock Fund Advisors ("BFA") serves as the
investment advisor to the Funds. BlackRock Investments, LLC (“BRIL”),
assists in the marketing of the Funds. BFA and BRIL are affiliates of
BlackRock, Inc., none of which is affiliated with SEI.
The iShares Funds are not sponsored, endorsed or issued by Barclays
Capital, nor does this company make any representation regarding the
advisability of investing in the Funds. Neither SEI, nor BlackRock
Institutional Trust Company, N.A., nor any of their affiliates, are
affiliated with the company listed above.
* Not FDIC Insured * No Bank Guarantee * May Lose Value
BlackRock
Christine Hudacko, 415-670-2687
christine.hudacko@blackrock.com
Diane
Henry, 415-670-4567
diane.henry@blackrock.com
Source: BlackRock