Barclays Global Capital announced Monday that recent rumors were true and they plan to sell iShares. There has been no confirmation as to who is interested in the ETF issuer but Barclays said it has
held discussions with a number of potentially interested parties as part of its practice of regularly reviewing the group’s portfolio of business.
The potential sale of its ETF subsidiary is in light of Barclays announcement to participate in the British government’s asset protection program. Potential buyers of iShares could be from any number of financial companies wanting to get at 46% of all of the ETF assets.
For iShares ETF Investors
For investors holding iShares ETFs, there is zero threat of assets being lost from any corporate action. ETF assets are held in trust, separate from the issuing company’s balance sheet. In the case of the company closing the funds, the assets of the ETF will be liquidated and delivered back to the investor.