Toronto-based BlackRock Asset Management Canada Ltd. on Thursday announced plans to simplify its product lineup by reclassifying all advisor class units of its iShares ETFs into common units of the same ETFs on April 6.
The proposed change is consistent with overall industry trends towards transparent and simplified fee structures, BlackRock Canada says in a news release.
As at Dec. 31, 2017, advisor class units made up less than 1% of BlackRock Canada’s assets under management, the firm says, and demand for advisor class units has dropped significantly in recent years.
Following the reclassification, advisor class and common units will share the same attributes and fee structure. The reclassification will not adversely impact the financial interests or rights of unitholders, the firm says.
Distribution reinvestment plans, pre-authorized cash contribution plans and systematic withdrawal plans for advisor class units will be terminated on or about March 2, and the advisor class units are expected to be delisted from the Toronto Stock Exchange or Aequitas NEO Exchange at the close of business on April 6.
Further details on ticker symbols and management fees can be found in the company’s new release.