New 'ETFs of ETFs' offer a powerful way to approach portfolio
construction and manage risk in today's volatile market
Listing: TSX (Toronto Stock Exchange)
TORONTO, Nov. 18 /CNW/ - The evolution of ETF thinking is officially
here. With uncertainty in the markets and risk at the forefront of investor
concern, Barclays Global Investors Canada Limited (Barclays Canada) today
announced the launch of a series of new funds that give investors and advisors
a powerful new way to approach portfolio construction and asset allocation
while managing risks with less cost and less hassle than ever before. The
iShares Portfolio Builder Funds are comprised of four distinctly focused
funds, built from a combination of iShares ETFs which trade around the globe.
All four funds will begin trading on the Toronto Stock Exchange today.
"There are no other funds like this on the market - they truly represent
a major evolution in the way ETFs can be used," said Heather Pelant, Head of
iShares, Barclays Canada. "What makes them so powerful is the scope of the
thinking behind them - they are designed by the same experts who manage the
portfolios of over half of the world's largest pension funds."
The creation of the new funds is a direct response to the feedback
Barclays Canada has been receiving from both advisors and investors. "One
thing that investors and advisors are recognizing in this market is that
complexity is not always a good thing - simplicity, when applied
intelligently, is - and that means knowing what you own. Not only do these
funds give Canadians the access to unparalleled institutional money management
insight, they also have the benefits inherent in all iShares ETFs -
transparency; cost and tax efficiencies; intra-day trading; and access to
hard-to-reach markets," said Pelant.
Two of the new funds, the iShares Conservative Core Portfolio Builder
Fund (XCR) and the iShares Growth Core Portfolio Builder Fund (XGR) are a
convenient way to achieve cost-effective, efficient and diversified solutions
to meet specific portfolio needs based upon your risk tolerance. Designed to
be the sole holding in a small account or a core holding in a large account,
these funds offer risk-mitigating diversification. The fees for these funds
are 60 bps.
The other two funds, the iShares Global Completion Portfolio Builder Fund
(XGC) and the iShares Alternatives Completion Portfolio Builder Fund (XAL) are
a convenient way to achieve tailored exposure that targets a specific asset
class allocation need. Designed to be held alongside, and complement, the
holdings in a typical Canadian investor's portfolio, the asset classes and mix
included are selected to have the lowest correlations, and therefore the
maximum diversification effect. The fees for these funds are 70 bps.
"In designing these funds we considered what has typically been ailing
many Canadian investors' portfolios, which is an overweight in domestic
equities and a true lack of diversification," says Cary Blake, Head of Global
Index and Markets Group, Barclays Canada. "We have taken our over 30 years of
institutional investing expertise and packaged these funds for the Canadian
investment community at large."
Using Barclays Canada's proprietary portfolio construction process, these
funds are created to provide easy access to various return premiums associated
with economic exposures that are often difficult for the average investor or
advisor to account for in the investment planning process, including those
associated with exposure to: short and long term interest rates; inflation;
credit and liquidity; information transparency; and economic growth and
political uncertainty. The strategic asset allocation is regularly rebalanced
to preserve the original exposures.
"Barclays Global Investors has a long standing history of developing next
generation investment solutions around the world," says Rajiv Silgardo, CEO,
Barclays Canada. "These funds combine the strengths of our two lines of
business, our institutional and retail investment channels, in a way that can
benefit all Canadian investors."
For more information on the new iShares Funds, please visit
About Barclays Canada:
Barclays Canada is an indirect subsidiary of Barclays PLC and part of
Barclays Global Investors (BGI), a division of Barclays PLC and one of the
largest institutional investment managers in the world and the largest manager
of index funds and exchange traded funds (ETFs). BGI leads the world in ETFs,
with over 200 iShares Funds representing over $400 (USD) billion in assets. As
at October 30, 2008, Barclays Canada managed over $53 billion in Canadian
assets and in other assets for Canadian clients, including over $13 billion in
the TSX-listed iShares Funds. Barclays Canada has offices in Toronto and
For further information:
For further information: or to schedule an interview: Contact for Media:
Lindsay Mattick Davidson, Narrative Advocacy Media, T - (416) 644-4123, C -
(416) 804-4712, Email: email@example.com; All other
inquiries: 1-866-iShares (1-866-474-2731), Email: