BlackRock Launches iSharesBondsTM Corporate ex-Financials Term ETFs
Matures like a bond, trades like a stock, diversified like a fund
NEW YORK, April 19, 2013 – BlackRock, Inc. (NYSE: BLK) announced today that its iShares Exchange Traded Funds (ETFs) business, the world’s largest manager of ETFs, has launched four iSharesBondsTM Corporate ex-Financials Term ETFs. These new products (with defined maturity dates in 2016, 2018, 2020 and 2023) are designed to offer investors “bond-like” features in addition to the benefits of an iShares ETF including exchange traded liquidity, transparency and diversification.
The iSharesBonds Corporate ex-Financial Term ETFs will provide efficient access to a diversified pool of investment grade corporate credit with a defined maturity date. While relevant to all investors the products are expected to appeal to institutional clients such as bank treasurers.
As investment grade corporate bond markets struggle with liquidity and transparency of pricing, institutional investors continue to use fixed income ETFs to efficiently manage their bond portfolios. iSharesBonds aim to meet the needs of institutional investors by providing efficient access to a large, diversified pool of corporate issuers in a defined maturity security.
A detailed suite of reports that address the requirements of these highly regulated institutions will also be provided by BlackRock Solutions®, BlackRock’s risk management, advisory and enterprise investment system. With the reporting requirements of bank treasurers in mind, iSharesBonds’ web-based reporting package offers 100% daily holdings transparency of individual bond position, pricing and risk analytics. These analytics, available to all investors, are intended to help highly regulated financial institutions meet their reporting requirements.
The four iSharesBonds launched today are as follows:
Matthew Tucker, Head of iShares Fixed Income Investment Strategy commented:
BlackRock is a leader in investment management, risk management and advisory services for institutional and retail clients worldwide. At March 31, 2013, BlackRock’s AUM was $3.936 trillion. BlackRock offers products that span the risk spectrum to meet clients’ needs, including active, enhanced and index strategies across markets and asset classes. Products are offered in a variety of structures including separate accounts, mutual funds, iShares® (exchange-traded funds), and other pooled investment vehicles. BlackRock also offers risk management, advisory and enterprise investment system services to a broad base of institutional investors through BlackRock Solutions®. Headquartered in New York City, as of March 31, 2013, the firm has approximately 10,600 employees in 30 countries and a major presence in key global markets, including North and South America, Europe, Asia, Australia and the Middle East and Africa. For additional information, please visit the Company's website at www.blackrock.com.
iShares is a global product leader in exchange traded funds with over 600 funds globally across equities, fixed income and commodities, which trade on 20 exchanges worldwide. The iShares Funds 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. The iShares customer base consists of the institutional segment of pension plans and fund managers, as well as the retail segment of financial advisors and high net worth individuals.
¹Greenwich Associates Report "Institutions Find New, Increasingly Strategic Uses for ETFs", May 2012
Carefully consider the iShares 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 (1-800-474-2737) or by visiting www.iShares.com. Read the prospectus carefully before investing.
Investing involves risk, including possible loss of principal. Transactions in shares of the iShares Funds will result in brokerage commissions and will generate tax consequences. iShares Funds are obliged to distribute portfolio gains to shareholders. Shares of the iShares Funds may be sold throughout the day on the exchange through any brokerage account. However, shares may only be redeemed directly from a Fund by Authorized Participants, in very large creation/redemption units. There can be no assurance that an active trading market for shares of an ETF will develop or be maintained. Diversification may not protect against market risk or loss of principal.
Bonds and bond funds will decrease in value as interest rates rise and are subject to credit risk, which refers to the possibility that the debt issuers will not be able to make principal and interest payments. Narrowly focused investments typically exhibit higher volatility and are subject to greater geographic or asset class risk. Shares of the Fund trade at market price, which may be greater or less than net asset value.
The Fund will terminate on or about March 31 of the year in Fund’s name. An investment in the Fund(s) is not guaranteed, and an investor may experience losses, including near or at the termination date. In the final months of the Fund’s operation, as the bonds it holds mature, its portfolio will transition to cash and cash-like instruments. Following the Fund’s termination date, the Fund will distribute substantially all of its net assets, after deduction of any liabilities, to then-current investors without further notice and will no longer be listed or traded. The Funds do not seek to return any predetermined amount.
During the twelve months prior to the Fund’s planned termination date, its yield will generally tend to move toward prevailing money market rates, and may be lower than the yields of the bonds previously held by the Fund and lower than prevailing yields for bonds in the market.
The rate of Fund distribution payments may adversely affect the tax characterization of an investor’s returns from an investment in the Fund relative to a direct investment in bonds. If the amount an investor receives as liquidation proceeds upon the Fund’s termination is higher or lower than the investor’s cost basis, the investor may experience a gain or loss for tax purposes.
The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).
The iShares Funds are not sponsored, endorsed or issued by Barclays Capital Inc., nor does this company make any representation regarding the advisability of investing in the Funds. BlackRock is not affiliated with the company listed above.
© 2013 BlackRock. All rights reserved. iSHARES, BLACKROCK, iSHARESBONDS and BLACKROCK SOLUTIONS are registered and unregistered trademarks of BlackRock. All other marks are those of their respective owners. iS-9349-0313
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