The iShares® Funds Announce Zero Year-End Capital Gains Distributions for Entire Fund Family
San Francisco - December 21, 2004 - The iShares Funds announced today that the year-end capital gains distributions are zero for all 97 of the iShares domestic equity, international equity and domestic fixed income exchange-traded funds.
The iShares Funds are providing this information in an effort to assist investors with year-end tax and investment planning. The portfolio management strategy of the iShares Funds is designed to minimize capital gains distributions to investors.
The iShares Funds are index funds that are bought and sold like common stocks on securities exchanges. The iShares Funds are attractive to many individual and institutional investors and financial intermediaries because of their relative low cost, tax efficiency and trading flexibility. Investors can purchase and sell shares through any brokerage firm, financial advisor, or online broker, and hold the funds in any type of brokerage account.
"Taxes can adversely impact fund performance and some funds are just more tax-efficient than others," says Lee Kranefuss, CEO of BGI's Intermediary and ETF Business. "Index funds typically buy and sell securities less often than actively managed mutual funds, decreasing the likelihood of capital gain distributions. In addition to having the relatively low turnover associated with index funds, exchange traded funds can be even more tax-efficient than traditional index funds."
To determine if the fund(s) are an appropriate investment for you, carefully consider the funds' investment objectives, risk factors and charges and expenses before investing. This and other information can be found in the funds' prospectuses, which may be obtained by calling 1-800-iShares or by visiting www.ishares.com. Read the prospectus carefully before investing.
Barclays Global Investors is one of the world's largest asset managers¹ providing structured investment strategies such as risk-controlled active strategies and indexing. In the U.S., BGI is one of the largest active managers,² set apart by its risk-controlled approach. BGI managed over U.S. $1.15 trillion in assets as of 9/30/04, and over 2,500 funds for more than 2,500 clients in 47 countries around the world. BGI is an innovator in investment management, applying science and technology to the investment process. BGI is owned by Barclays PLC.
1. Source: "P&I/Watson Wyatt World 500," Pensions & Investments, September 6, 2004.
2. Source: "Special Reports: Money Manager Directory," Pensions & Investments, May 31, 2004.
All registered investment companies, including the iShares Funds, are obliged to distribute portfolio gains to shareholders at year-end regardless of performance. These gains may be generated due to index rebalancing or to meet diversification requirements. Your own iShares Fund trading, too, will generate tax consequences and transaction expenses. Certain traditional mutual funds can be tax efficient as well. The information provided is not intended to be tax advice. Tax consequences of dividend distributions may vary by individual taxpayer.
Please consult your tax professional or financial adviser for more information regarding your tax situation.
There are risks involved with investing, including possible loss of principal.
The annual management fee of iShares Funds may be substantially less than those of most mutual funds. iShares Fund transactions will result in brokerage commissions, but the savings from lower annual fees can help offset these costs. The iShares Funds may be sold throughout the day on the exchange through any brokerage account. However, iShares Funds may only be redeemed directly from the fund by Authorized Participants, in very large creation/redemption units.
The iShares Funds ("Funds") are distributed by SEI Investments Distribution Co. (SEI). Barclays Global Fund Advisors (BGFA) serves as an advisor to the Funds. Barclays Global Investors Services (BGIS) assists in the marketing of the Funds. BGFA and BGIS are subsidiaries of Barclays Global Investors, N.A., which is a wholly owned subsidiary of Barclays Bank PLC, none of which is affiliated with SEI.
©2004 Barclays Global Investors. All rights reserved. iShares® is a registered trademark of Barclays Global Investors, N.A. All other trademarks, servicemarks or registered trademarks are the property of their respective owners. (2004-2398)
As of December 1, 2009, the former Barclays Global Investors entities referred to in this publication are owned and controlled ultimately by BlackRock Inc. and neither Barclays nor any Barclays affiliate is responsible for, or associated with, the contents of this publication.
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