Press Release Barclays Global Investors Announces Launch of a Suite of iShares Asset Allocation Exchange Traded Funds
SAN FRANCISCO, November 7, 2008 - Barclays Global Investors (BGI), one of the world's largest asset managers and ETF providers, announced today the launch of iShares Asset Allocation Exchange Traded Funds (ETFs), which are designed to provide investors with a diversified portfolio of ETFs within an efficient ETF structure. The new funds are based on S&P Target Date and Target Risk Indexes that contain iShares ETFs. The launch coincides with the 15 year anniversary of the first target date funds for institutional investors, known as LifePath, invented by BGI in 1993. The new iShares ETFs began trading today on the NYSE Arca.
"As the pioneer of institutional target date funds, we're pleased to offer individual investors and their financial advisors iShares Asset Allocation Funds that provide diversified, cost-effective one-stop solutions to help meet multiple investment needs," said Noel Archard, Head of US iShares Product Research and Development at BGI.
Asset allocation is an investment strategy that seeks to balance risk and reward in a portfolio by spreading investments over several types of asset classes, such as equities, fixed-income and other non-equity correlated assets. Asset allocation is widely considered to be the basis of a properly designed long-term investment program. Target date funds correspond to an anticipated timing need for funding life events such as retirement or paying for college, whereas target risk funds correspond to a particular level of risk tolerance.
Archard said, "The new iShares target date funds are well-suited to IRA rollovers or small-sized 401(k) plans who want to offer their participants an option that combines certain benefits of ETFs such as transparency with the benefits of target funds, which help mitigate common investor pitfalls such as poor asset allocation and failure to make portfolio changes over time."
The Standard & Poor's (S&P) Target Date Indexes are designed to provide exposure to a diversified array of financial assets that shifts over time. Each year S&P conducts a survey of target date funds and combines the raw survey data to derive an allocation basis for each of the Underlying Indexes. Thus each Underlying Index represents a blend of target date provider philosophies.
Archard said, "iShares Target Risk Funds can be a convenient way for individual investors and their financial advisors to meet a particular investment objective after they have identified the investor's risk tolerance with one fund that covers multiple asset classes."
The S&P Target Risk Indices use two innovative features to offer risk-sensitive exposure to multiple asset classes. S&P identifies a value-weighted market portfolio. Then it employs a shortfall, or downside, risk control framework that is intended to provide insight into the potential for negative returns over a given holding period and adjusts the weightings of components in the market portfolio to tailor the risk profile to match the risk targeted by each of the Underlying Indexes.
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.
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.
About Barclays Global Investors
Investing involves risks, including possible loss of principal. Transactions in shares of the iShares Funds will result in brokerage commissions. Risk controls, asset allocation models, and diversification do not promise any level of performance or guarantee against loss of principal.
The iShares Funds ("Funds") are distributed by SEI Investments Distribution Co. (SEI). Barclays Global Fund Advisors (BGFA) serves as an advisor to the Funds. BGFA is a subsidiary of Barclays Global Investors, N.A., a majority-owned subsidiary of Barclays Bank PLC, none of which is affiliated with SEI.
The iShares Funds are not sponsored, endorsed, issued, sold or promoted by Standard and Poor's, nor does this company make any representation regarding the advisability of investing in the Funds. Neither SEI nor BGI, nor any of their affiliates, are affiliated with the company listed above.
©2008 Barclays Global Investors, N.A. 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.
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