BNY Mellon, Citi and JP Morgan will join
State Street in servicing U.S.- listed iShares ETFs
BlackRock (NYSE: BLK) today announced that it has entered into
agreements with BNY Mellon (NYSE: BK), Citi (NYSE: C), and JP
Morgan (NYSE: JPM) to join State Street (NYSE: STT) as post-trade
service providers for iShares’ $2.3 trillion in U.S.-domiciled
exchanged traded funds (ETFs).1 The announcement culminates a
nearly two year-long due diligence process with the selection of
several world-class financial institutions to support the growth of
U.S. iShares ETFs and strengthen the broader ETF ecosystem.
The transition of any U.S. iShares ETF assets to the new
providers is expected to commence in the second half of 2022 and
projected to take 18 months to complete. The RFP and due diligence
process for iShares’ Ireland-domiciled ETFs is on-going and the
outcome will be announced at a later date.
Championing investor progress
Since the launch of its first ETF 25 years ago, iShares has
helped make investing easier and more affordable for over 24
million Americans.2 iShares led the modernization of the bond
markets through the advent of fixed income ETFs, brought additional
sources of return to mainstream investors through sustainable,
factor and thematic ETFs, and provided investors access to
international markets and institutional strategies through an array
of ETFs across asset classes. As the largest ETF franchise in the
U.S. with 388 U.S.-domiciled ETFs, iShares provides investors with
greater choice of investment styles than any other ETF
provider.3
“Tens of millions of investors now choose ETFs to gain efficient
and transparent access to sources of market return all around the
world. Even as the ETF industry experienced record growth in 2021,
ETF assets are still less than 3% of the markets they seek to
access globally,4” said Salim Ramji, Global Head of iShares
& Index Investing at BlackRock. “As we anticipate decades
of growth ahead for iShares and the industry, these changes
reinforce and diversify our operational foundation so that we can
deliver more ETF exposures at greater scale and with the high
standards that our clients expect.”
Paving the way for greater scale and efficiency
The selection of BNY Mellon, Citi, JPMorgan and State Street
reflects these firms’ continued investment in their post-trade and
technology platforms. Together they bring an expansive global
servicing footprint, strong ties into the broader ETF ecosystem,
differentiated service and proven expertise. Each firm will provide
custodial, fund administration, fund accounting, and transfer
agency services to a subset of U.S.-listed iShares ETFs.5
Approximate AUM Breakdown by
Provider*:
Citi
40%
JP Morgan
30%
State Street
15%
BNY Mellon
15%
*Percentages are approximate as of September
30, 2021 and are subject to change
“All four providers have long-standing relationships with
BlackRock and have proven track records in the post-trade servicing
of funds,” says Derek Stein, Senior Managing Director and Global
Head of Technology & Operations at BlackRock. “The decision
to diversify across these world-class financial institutions is
based on our desire to create a robust operating model for
servicing ETFs, which will help us scale the iShares franchise and
mitigate concentration risk.”
About BlackRock
BlackRock’s purpose is to help more and more people experience
financial well-being. As a fiduciary to investors and a leading
provider of financial technology, we help millions of people build
savings that serve them throughout their lives by making investing
easier and more affordable. For additional information on
BlackRock, please visit www.blackrock.com/corporate
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 $3.04
trillion in assets under management as of September 30, 2021,
iShares continues to drive progress for the financial industry.
iShares funds are powered by the expert portfolio and risk
management of BlackRock.
Carefully consider the Funds' investment objectives, risk
factors, and charges and expenses before investing. This and other
information can be found in the Funds' prospectuses or, if
available, the summary prospectuses which may be obtained by
visiting www.iShares.com or www.blackrock.com. Read the prospectus
carefully before investing.
Investing involves risk, including possible loss of
principal.
Prepared by BlackRock Investments, LLC, member FINRA.
Buying and selling shares of ETFs may result in brokerage
commissions. This information should not be relied upon as
research, investment advice, or a recommendation regarding any
products, strategies, or any security in particular. This material
is strictly for illustrative, educational, or informational
purposes and is subject to change.
The iShares Funds are not sponsored, endorsed, issued, sold or
promoted by BNY Mellon, Citibank, JPMorgan or State Street. None of
these companies make any representation regarding the advisability
of investing in the Funds. BlackRock is not affiliated with the
companies listed above.
©2021 BlackRock, Inc. All rights reserved. iSHARES and
BLACKROCK are trademarks of BlackRock, Inc., or its
subsidiaries in the United States and elsewhere. All other marks
are the property of their respective owners
1 As of September 30, 2021. Source: BlackRock 2 As of September
30, 2021. Source: BlackRock 3 As of September 30, 2021. Source:
BlackRock 4 Sources: Global and regional Equity market size from
World Federation of Exchanges Database as of 12/31/19. Global and
regional bond market size from Bank of International Settlements
(BIS) as of 12/31/19. ETF AUM as of 3/31/21 per Markit, Bloomberg.
5 The exact funds to be determined in the coming months.
Appropriate notice will be provided to shareholders of the impacted
funds.
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version on businesswire.com: https://www.businesswire.com/news/home/20211207006184/en/
Media Soogyung Jordan Email:
soogyung.jordan@blackrock.com Phone: 646-231-1540
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