BlackRock Investments Canada Inc, an indirect, wholly-owned subsidiary of BlackRock, Inc is terminating the Claymore Inverse 10 Yr Government Bond ETF and distributing to unitholders the proceeds to be received from the liquidation of the assets, less all liabilities and all expenses to be incurred in connection with the termination and dissolution of CIB.
BlackRock, and its exchange traded fund (ETF) provider iShares, proposed late last year a series of regulatory reforms and recommendations for enhanced disclosure and transparency related to the ETF markets. ETFs have provided investors with a low cost and transparent way to access a wide variety of asset classes for more than two decades. When first introduced, ETFs brought investors new levels of transparency and disclosure among other benefits. However, increasingly complex ETFs and related products have sometimes failed to maintain that standard and have introduced new risks to these products.
“We believe in providing products that will help investors build robust portfolios and achieve their savings and investment goals” says Mary Anne Wiley, Head of iShares, BlackRock Canada. “Given the fund’s mandate is speculative in nature and designed for short-term use, we don’t believe it fits well with the iShares brand or product philosophy and will be terminating the fund.”
BlackRock Investments expects that CIB will be terminated on or about June 22, 2012 and that proceeds from the termination and dissolution of CIB will be payable to CIB unitholders on or shortly after the termination date.