TORONTO, May 09, 2023 (GLOBE NEWSWIRE) -- BlackRock Asset Management Canada Limited (“BlackRock Canada”), an indirect, wholly-owned subsidiary of BlackRock, Inc. (“BlackRock”) (NYSE:BLK) today announces notional non-cash reinvested distributions (each, a “Notional Distribution”) for each of the iShares ESG MSCI Canada Leaders Index ETF and iShares ESG MSCI EAFE Leaders Index ETF (each, an “iShares ETF”).
A Notional Distribution occurs when a distribution is made in the form of units, which are then immediately consolidated with the units held prior to the distribution, so that the total number of units held after the distribution is identical to the number of units held prior to the distribution.
The Notional Distributions have been made to all unitholders of record of each iShares ETF as indicated in the table below:
| iShares ETF Name | Ticker | Record Date | Non-Cash Distribution Per Unit | |
| iShares ESG MSCI Canada Leaders Index ETF | XCLR | January 30, 2023 | $0.46082 | |
| iShares ESG MSCI EAFE Leaders Index ETF | XDLR | January 30, 2023 | $1.37121 | |
As at the record date indicated above, each iShares ETF did not qualify as a mutual fund trust under the Income Tax Act (Canada) (the “Tax Act”) and more than 50% of its market value was held by one or more financial institutions. It was determined that as at that record date the iShares ETF was considered a financial institution for purposes of the “mark-to-market” rules contained in the Tax Act.
The Tax Act contains special rules for deeming a tax year end when a taxpayer becomes or ceases to be a financial institution and for determining the income of financial institutions. This includes, but is not limited to, the realization and recognition on income account of all unrealized gains or losses on mark-to-market property held by the financial institution at the end of any given tax year when the “mark-to-market” rules apply. On the date following the record date indicated above, each iShares ETF ceased to be a financial institution, as such term is defined under the Tax Act. As a result of this change of status, the iShares ETF is required to recognize a deemed year-end for tax purposes and distribute any net income and net realized capital gains earned or realized as applicable by the iShares ETF up until the deemed year end (reflected by the record date indicated above).
In early 2024, the tax characteristics of all distributions for 2023 for the iShares ETF will be reported to brokers via the Canadian Depository for Securities (CDS).
About BlackRock
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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 1300+ exchange traded funds (ETFs) and US$3.07 trillion in assets under management as of March 31, 2023, iShares continues to drive progress for the financial industry. iShares funds are powered by the expert portfolio and risk management of BlackRock. iShares® ETFs are managed by BlackRock Asset Management Canada Limited.
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.
Contact for Media:
Reem Jazar
Email: reem.jazar@blackrock.com
