The Weekly Lineup: Want To Buy Claymore?

BlackRock Buys Claymore

Claymore-Guggenheim-BlackRock

courtesy of www.techfinance.ca

The big surprise this week was the announcement that BlackRock was buying Claymore Investments, Canada’s second largest ETF provider, for an undisclosed sum. BlackRock is the world’s largest asset management firm, and owner of Canada’s popular iShares ETFs. This sale has a huge impact on the ETF landscape in Canada, and would roughly make BlackRock owner of 85% of the Canadian ETF market. The Globe and Mail summarized the sale last week in, BlackRock Deal Creates ETF Powerhouse in Canada. Be sure to also watch the BNN Interview, with both Claymore president Som Seif and BlackRock CEO, Bill Chinery.

Currently Claymore has some $5.48 billion dollars in assets under management (AUM), making up approximately 14.3% of the Canadian ETF market. BlackRock currently has $28.29 billion dollars in assets under management, making it the leading ETF provider in Canada at 73.7%.  Combined, both claymore and BlackRock account for nearly 85% of the Canadian ETF market. That leaves the remaining 15% to Horizons ($3.08 B),  BMO Asset Management ($1.51 B),  and everyone else.

Rumours of Claymore’s sale started last November, Claymore Investments Seeking Buyer, but not much was heard after that point.  Claymore appeared to be doing well in the Canadian market, and began an aggressive marketing campaign in both TV and Print Media during December last year, in time for the RRSP season. There was no indication from that point on that Claymore was up for sale. Claymore hasn’t openly discussed why they are selling to BlackRock, and as retail investors, we are unlikely to know all the facts or even why the sale occurred, anytime soon.

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7 Responses to “The Weekly Lineup: Want To Buy Claymore?”

  1. Echo

    Jan 14. 2012

    Thanks for the mention, Ninja. Have a great weekend!

    Reply to this comment
  2. Dividend Mantra

    Jan 14. 2012

    Ninja,

    Thanks so much for the mentions! It’s much appreciated. Hope all is well in Vancouver.

    Have a great weekend.

    Reply to this comment
  3. Thanks for the mention. Have a nice weekend.

    I had not been following the Claymore case. Very interesting. Aside from the ETF landscape, I looked at BlackRock on NYSE (BLK) and it pays a decent dividend. The purchase doesn’t seem to have an impact on the stock all that much though. Thanks for the article, it puts BLK on my radar now.

    Reply to this comment
    • The Dividend Ninja

      Jan 14. 2012

      PIE Your welcome, I really like the way you keep track of both the Canadian and American Aristocrats. I wonder if the yield will go up now on Claymore CDZ ETF 😉

      Yah I also made a note of BLK as a stock for possible investment, especially with a 3% yield. Debt looks a little high though 😉

      Cheers
      The Dividend Ninja

      Reply to this comment
  4. The Dividend Ninja

    Jan 14. 2012

    Echo and Dividend Mantra You guys are welcome 🙂

    Reply to this comment
  5. My Own Advisor

    Jan 15. 2012

    Thanks for the mention Ninja!

    BlackRock was smart to acquire the Claymore suite of ETFs, and in doing so, there is very little they need to change because of it.

    Like I wrote on Canadian Couch Potato’s site, how many other multi-billion-dollar acquisitions can you say that about?

    When it comes to ETFs, I think bigger (AUM) is better. More volume helps ensure costs stay low. It would be suicide as you have explained on other sites, to increase ETF fees.

    BLK would be great to own but I can’t afford enough to the transaction worthwhile.

    Have a great weekend,
    Mark

    Reply to this comment
    • The Dividend Ninja

      Jan 15. 2012

      MOA This could be a really positive move for current Claymore shareholders, I think we will see changes sooner than later. Bill Chinery (BlackRock CEO) indicated not within the next three months however, but after that…

      Who knows maybe CLF and CBO will be migrated to the iShares family 😉

      Yes DRIPping BLK would be a little cost prohibitive. You would jsut have to buy it and collect dividends as cash.

      Cheers
      Dividend Ninja

      Reply to this comment

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