Aiming for the asset managers big leagues
‘This is not the time to take our foot off the gas’
Blackrock Investments Canada Inc.’ s ishares division is already easily the biggest provider of exchangetraded funds in the country. Now, its boss has her sights set on an even loftier distinction: To become one of the five largest asset managers in the country.
“Those positions have traditionally been reserved for the banks and longstanding mutual fund providers,” Mary Anne Wiley said. “I want ishares on that list and I want us to be there soon.”
Ms. Wiley was named the head of Blackrock’s ishares unit i n Januar y after the announcement of the company’s acquisition of Claymore Investments Inc., the country’s secondbiggest ETF provider. Som Seif, Claymore’s founder, announced Monday he was leaving the firm.
The Claymore acquisition was completed in March and gives ishares a dominant 82% share of the Canadian ETF market and it ranks as the 10 th-largest fund manager in the country with assets under management of roughly $38.7-billion.
Ms. Wiley expects those assets to substantially grow over the next five years as Blackrock expands its product lineup and the ETF industry, in general, continues to grow.
“This is not the time for us to be complacent and take our foot off the gas,” she said.
“We are in a fabulous position to get out there and broaden the access for ETFS, particularly with individual investors.”
Ms. Wiley said the amalgamation of existing ishares funds with Claymore’s legacy funds gives investors greater choice and more options to build comprehensive ETF portfolios through one provider.
Although Claymore’s Inverse 10-year Government Bond ETF was deemed too speculative to make the grade, the rest of Claymore’s platform is being integrated, including its advisor class of ETFS and laddered bond funds.
“Not only are we going to keep them, we are going to support and promote them, and in some cases look at broadening out the idea,” she said.
Ultimately, Ms. Wiley believes ishares’ success lies in its ability to offer creative solutions that satisfy investors’ needs.
While that might mean pushing into a new geographic sector or asset class, it doesn’t necessarily indicate that ishares will build more sophisticated or complicated products.
“You don’t have to be exotic to be innovative or to be new,” she said. “Sometimes simplicity and clarity is the best solution because investors need to understand what they are getting and be comfortable with it.”