BlackRock Buys Claymore
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.
The Weekly Lineup
Here are some great investing reads from around the web:
- Buchanan Wealth Management provides a variety of wealth management services for families and individuals.
- The Canadian Couch Potato discusses the recent and surprising sale of Claymore Investments to investing giant BlackRock (iShares), in BlackRock and Claymore Make Good Partners.
- Boomer & Echo remind us during the RRSP frenzy not to get swept up by less than scrupulous investment schemes in Spotting the Crooks. Lots of useful information here to remember when you hear the words “financial advisor” – double check their credentials!
- Robert Wasilewski always writes interesting articles. In this post he suggests now is the time to by Europe, in An ETF for the Long-Term Contrarian Investor. That’s what value investing is all about! Robert I am doing exactly that through my low-cost TD e-series funds.
- My Own Advisor (not really my advisor) discusses Asset Allocation, and how it relates to his own holdings, in Where I disagree with David Swensen on Asset Allocation.
- The Passive Income Earner wrote an informative post on the 2012 Canadian Dividend Aristocrats, and the recent changes to the index.
- Dividend Mantra tells us why dividend stocks are the way to go, and tells readers Start Off Your New Year Right. But Mantra you don’t need thousands to start, you can start off easily with DRIPs.
- Dividend Mantra also gives his best shot for the 2012 Best Dividend Stocks.
- The Dividend Guy shares the Best Canadian Dividend Stocks for 2012 and also the Best U.S. Dividend Stocks for 2012.
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