BlackRock Canada Licenses Morningstar Global Long/Flat Commodity Index for ETF

BlackRock Canada Licenses Morningstar Global Long/Flat Commodity Index for ETF 
TORONTO, Jan. 28, 2013 /CNW/ - Morningstar, Inc. (NASDAQ: MORN), a leading 
provider of independent investment research, today announced that BlackRock 
Asset Management Canada Limited (BlackRock Canada), an indirect, wholly owned 
subsidiary of BlackRock, Inc., has licensed the Morningstar Global Long/Flat 
Commodity Index to serve as the new benchmark for the iShares Broad Commodity 
Index Fund. This exchange-traded fund (ETF) trades on the Toronto Stock 
Exchange under the symbol "CBR," and began tracking the Morningstar index on 
Nov. 30, 2012. The Morningstar Global Long/Flat Commodity Index is a fully 
collateralized commodity futures index that uses a momentum rule to determine 
if each commodity is held long or the assets are moved to cash. This is the 
first investable vehicle listed in Canada to track the Morningstar Global 
Long/Flat Commodity Index. 
"There are two potential sources of return when investing in commodities 
futures—price change and roll yield," Jeff Logan, head of iShares Product, 
BlackRock Canada, said. "We selected the Morningstar Global Long/Flat 
Commodity Index as the benchmark for our Broad Commodity Index Fund because of 
its superior methodology that aims to maximize both the changes in commodity 
prices and the potential returns generated by rolling the future contracts." 
For each commodity in the index, Morningstar calculates a "linked" price 
series that incorporates both price changes and roll yield (the loss or gain 
that results from replacing an expiring contract with one that matures further 
in the future). At each monthly rebalancing, Morningstar evaluates whether 
changes should be made to the direction of the individual commodities in the 
index. The decision to change direction is based on whether the linked price 
is above or below its 12-month daily moving average. 
"We are pleased that BlackRock Canada has licensed our index for an 
exchange-traded product," Sanjay Arya, senior vice president of Morningstar 
Indexes, said. "We have seen a tremendous increase in investor appetite for 
commodities in recent years given their low correlation to traditional asset 
classes and potential hedge against inflation. The Morningstar Global 
Long/Flat Commodity Index provides investors with a transparent benchmark that 
harnesses the natural momentum in the commodities futures market." 
The Morningstar Global Long/Flat Commodity Index tracks the performance of the 
most liquid exchange-listed commodities futures contracts. Individual 
commodities are weighted according to the dollar value of their open interest. 
Morningstar employs this system to maintain a diverse exposure across the 
spectrum of commodities and to reflect the importance of each commodity in the 
global economy. The index is calculated once a day, rebalanced monthly, and 
reconstituted annually. All of Morningstar's commodity indexes have a history 
going back to 1980 and use a transparent, rules-based methodology. 
Introduced in 2002, the Morningstar Indexes include a broad range of 
traditional beta global equity, fixed income, and commodity indexes that are 
also combined to form an asset allocation index series. Morningstar Indexes 
also offers a series of active equity indexes that draw on the equity, fund, 
and asset allocation research across the company. Currently, 32 ETFs and one 
ETN track Morningstar Indexes globally. For more information about all of 
Morningstar's indexes, visit http://indexes.morningstar.com. Morningstar 
Indexes is part of the Morningstar Investment Management division. 
About Morningstar, Inc. 
Morningstar, Inc. is a leading provider of independent investment research in 
North America, Europe, Australia, and Asia. The company offers an extensive 
line of products and services for individuals, financial advisors, and 
institutions. Morningstar provides data on more than 385,000 investment 
offerings, including stocks, mutual funds, and similar vehicles, along with 
real-time global market data on more than 8 million equities, indexes, 
futures, options, commodities, and precious metals, in addition to foreign 
exchange and Treasury markets. Morningstar also offers investment management 
services through its registered investment advisor subsidiaries and has 
approximately $195 billion in assets under advisement and management as of 
Sept. 30, 2012. The company has operations in 27 countries. 
The BlackRock ETF will not be sponsored, endorsed, issued, sold or promoted by 
Morningstar, and Morningstar makes no representation regarding the 
advisability of investing in it. 
Media Contacts: 
Jaime Aitken, 416-484-7868 orjaimelyn.aitken@morningstar.com 
SOURCE: Morningstar Research Inc. 
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CO: Morningstar Research Inc.
ST: Ontario
NI: FIN FIN  
-0- Jan/28/2013 18:00 GMT
 
 
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