BlackRock Canada Announces Investment Strategy Enhancements for Certain iShares Funds

TORONTO, ONTARIO--(Marketwired - Aug. 26, 2016) - (TSX:XSC)(TSX:XSE)(TSX:XSI) - BlackRock Asset Management Canada Limited ("BlackRock Canada"), an indirect, wholly-owned subsidiary of BlackRock, Inc. (NYSE:BLK), today announced changes to the investment strategy of the following funds (collectively, the "iShares Funds"), to clarify and enhance the manner in which a proprietary portfolio optimization process is used in the construction of the iShares Funds' portfolios:

Fund Name	Ticker
iShares Conservative Short Term Strategic Fixed Income ETF	XSC
iShares Conservative Strategic Fixed Income ETF	XSE
iShares Short Term Strategic Fixed Income ETF	XSI

In constructing the portfolio of each iShares Fund, BlackRock Canada currently utilizes a proprietary portfolio optimization process to estimate efficient portfolios with total volatility levels that are consistent with a broadly diversified portfolio of Canadian fixed income securities. As an additional risk management technique, on a going forward basis, the process will also be configured to estimate efficient portfolios with expected yield or long-term expected returns that fall within a specified range relative to the broader Canadian bond market, as further described below. Prior to implementing any such portfolio, BlackRock Canada (or its affiliated sub-adviser) reviews the output of the portfolio optimization process and may make adjustments based on market outlook and other factors, such as trading costs.

Upon implementing the enhancements, the additional optimization process will initially be configured to: (a) in the case of XSC, estimate an efficient portfolio with a targeted average yield to maturity ranging between +50 and +100 bps above the FTSE TMX Canada Universe Bond Index; (b) in the case of XSI, estimate an efficient portfolio with a targeted average yield to maturity ranging between +100 and +150 bps above the FTSE TMX Canada Universe Bond Index; and (c) in the case of XSE, estimate an efficient portfolio with a targeted expected return ranging between +75 and +125 bps above the FTSE TMX Canada Universe Bond Index. In each case, the configuration of the optimization process may change from time to time in BlackRock Canada's discretion, subject to each fund's investment objective.