The investment strategy of the iShares Broad Commodity Index Fund (CAD-Hedged) is to obtain economic exposure to the constituent securities of the Morningstar Global Long/Flat Commodity Index, or such other broad-based commodity index as may be selected by BlackRock Investments.

The Fund utilizes a Forward Agreement structure with a Canadian chartered bank or an affiliate thereof in order to provide exposure to the performance of its applicable index. Amounts equal to the income and/or capital gains generated by the portfolio of the index (interest and/or foreign income) will be paid to Unitholders of the ETF primarily as return of capital distributions and as distributions of capital gains. Depending upon the application of a proposed measure in the 2013 Federal Budget relating to any extension or replacement of the Forward Agreement following the Budget date, such distributions may be treated as ordinary income.

On November 30, 2012 BlackRock Canada announced that the investment objective of the fund was changed in order to change the index that the fund seeks to replicate to the Morningstar Global Long/Flat Commodity Index or such other broad-based commodity index as may be selected by BlackRock Canada and notified to unitholders by press release, net of expenses. The press release can be found here.

iShares Canada Advisory Budget Announcement - March 25, 2013. Click here for more information.