The current custodian of CGL and SVR has provided notice of its intention to terminate the custody agreement with CGL and SVR during the first quarter of 2021. In order for CGL and SVR to continue to offer investors a convenient and secure manner of obtaining exposure to the performance of the price of gold and silver bullion, respectively, BlackRock Canada currently intends to appoint
In order to facilitate the appointment of
Current Investment Restriction | Proposed Investment Restriction |
[Each iShares Fund] shall store all the Bullion owned by the iShares Fund in: (i) with respect to CGL, the vault facilities of a Schedule I Canadian chartered bank or an approved subcustodian or sub-subcustodian or an affiliate or a division thereof on a segregated basis; and (ii) with respect to SVR, the vault facilities of a Schedule I Canadian chartered bank, or an affiliate or a division thereof, or a sub-custodian on an allocated basis. | [Each iShares Fund] shall store all of the Bullion owned by the iShares Fund in the vault facilities of one or more entities that meet the requirements to act as a custodian or sub-custodian for assets as described in NI 81-102 (or are permitted to act as a custodian or sub-custodian pursuant to exemptive relief from the applicable requirements granted by the Securities Authorities), on an allocated and segregated basis. |
[Each iShares Fund] shall ensure that the Custodian has adequate insurance in place in respect of the Bullion held by the Custodian on behalf of the Fund. | [Each iShares Fund] shall ensure that the Custodian itself has, or that the Custodian or sub-custodian(s) are required to ensure that their respective sub-custodian(s) have, adequate insurance arrangements in place in respect of the Bullion held on behalf of the Fund by such Custodian or sub-custodian(s), as applicable. |
In connection with these proposed changes, each iShares Fund’s investment strategy would also be changed to permit: (a) each iShares Fund’s bullion to be held in the vault facilities of entities that comply with the iShares Funds’ proposed custody investment restriction as specified above, and (b) any bullion held outside of
Collectively, these changes will provide greater flexibility to BlackRock Canada to implement a new custody structure for the iShares Funds. The change to the insurance investment restriction is intended to better reflect the use of sub-custodians in the custody structure and the exemptive relief which will be relied upon to use the RCM and its sub-custodian(s).
Further details regarding the Proposals and related changes will be provided in a joint management information circular to be delivered to unitholders of record of the iShares Funds as of
Capitalized terms used in this press release but not otherwise defined have the meaning ascribed to them in the Declaration of Trust.
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About iShares
iShares unlocks opportunity across markets to meet the evolving needs of investors. With more than twenty years of experience, a global line-up of 900+ exchange traded funds (ETFs) and
iShares ETFs are managed by
Commissions, trailing commissions, management fees and expenses all may be associated with investing in iShares ETFs. Please read the relevant prospectus before investing. The funds are not guaranteed, their values change frequently and past performance may not be repeated. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional.
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