iShares launches three Australian fixed income ETFs on ASX today
Announcement posted by FCR (Financial & Corporate Relations Pty Limited) 15 Mar 2012
Sydney, March 14, 2012 – BlackRock Investment Management (Australia) Limited (BIMAL) announced that
its iShares business has launched three new Australian fixed income exchange traded funds (ETFs) on the
Australian Securities Exchange (ASX) today.
The new funds extend the number of iShares ETFs available on the ASX to 26, covering Australian fixed
income as well as Australian and international equity indices. iShares is the largest provider of ETFs globally.
Mark Oliver, Managing Director of iShares Australia, said:
“This week Australian investors can readily gain exposure to a diversified range of high quality Australian
bonds on the ASX for the first time. The ability to trade fixed income ETFs empowers investors to easily
manage and adjust their asset allocation.
“Market variations over the past few years have highlighted the importance of portfolio diversification and
liquidity. We believe investors are now rediscovering the valuable role that defensive, income-generating
assets, like high quality Australian fixed income can play in their investment portfolios.
“Our three new ground-breaking iShares ETFs aim to track the pre-eminent UBS index series. Our research
shows that UBS indices are the most recognised and respected benchmark series relied upon by Australian
fixed income investors.”
Details of the three new Australian fixed income ETFs are as follows:
iShares UBS Composite Bond (IAF)
• Aims to track the performance of the UBS Australia Composite Bond Index, before fees and expenses,
• Investing in investment grade fixed income securities issued by the Australian Treasury, Australian State
Governments, supranational, sovereign and corporate entities.
Mgt Cost+% pa - 0.24
iShares UBS Treasury (IGB)
• Aims to track the performance of the UBS Treasury Index, before fees and expenses.
• Investing in investment grade fixed income securities issued by the Australian Commonwealth Government.
Mgt Cost+% pa - 0.26
iShares UBS Government Inflation (ILB)
• Aims to track the performance of the UBS Government Inflation Index, before fees and expenses.
• Investing in investment grade fixed income securities issued by the Australian Commonwealth Government and Australian State Government.
Mgt Cost+% pa - 0.26
(+Total management fees and expenses as a percentage of net asset value.)
Duncan Haig, Head of fixed income, UBS said:
“We are delighted to be working with iShares as they enhance access to Australia’s high quality fixed income
markets for investors. In seeking a benchmark partner for their new ETFs, iShares placed significant
emphasis on market coverage, track record, and the overall reputation of the index provider.”
Steve Miller, Head of Fixed Income, BlackRock Australia said:
“In a world of uncertainty, the hunt for a combination of defensive resilience, income, as well as positive
investment returns more generally, is especially challenging. Many Australians have migrated to bank
deposits for safety.
“But a focus on safety at all costs can have a price. It may mean missing out on the potential for capital gains
from fixed income investments that can occur when equity markets are volatile. This potential capital gain
feature of fixed income and its negative correlation with equities is absent from bank deposits.
“Australia is one of only a handful of countries that can boast a top-level ranking from each of the three major
debt rating agencies, potentially making Australian government bonds must-have assets for defensive core
portfolios.”
According to BlackRock’s latest Exchange Traded Product (ETP) Landscape report (February 2012), fixed
income ETPs attracted US$4.4 billion in net new assets in February 2012 bringing the YTD total to US$13.5
billion. The category captured 25.8% of total global ETP YTD inflows, outperforming the first two months of
2011 when bond ETPs garnered 13.3% of global inflows.
ENDS
Further information is available at www.iShares.com.au
BACKGROUND INFORMATION
About iShares iShares is the global product leader in exchange traded funds with over 500 funds globally across
equities, fixed income and commodities, which trade on 20 exchanges worldwide. In Australia, iShares has 26 ETFs
listed on the Australian Securities Exchange (ASX), across both domestic and international indices. The first iShares ETF
was listed on the ASX in October 2007. The iShares funds are bought and sold like common securities on securities
exchanges. The iShares funds are attractive to many individual and institutional investors and financial intermediaries
because of their relative low cost, liquidity and trading flexibility. Investors can purchase and sell shares or units (as the
case may be) through any brokerage firm, financial adviser, or online broker, and hold the funds in any type of brokerage
account. The iShares customer base consists of the institutional segment of superannuation plans and fund managers,
as well as the retail segment of financial advisers and individual investors. Visit iShares.com.au for further information.
About BlackRock
BlackRock is a leader in investment management, risk management and advisory services for institutional and retail
clients worldwide. At December 31, 2011, BlackRock’s AUM was $3.513 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 December 31, 2011, the firm has approximately 10,100 employees in 27 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
IMPORTANT INFORMATION
Before investing in an iShares exchange traded fund, you should carefully consider whether such
products are appropriate for you, read the applicable product disclosure statement (“PDS”) available
at iShares.com.au and consult an investment adviser.
Issued by BlackRock Investment Management (Australia) Limited ABN 13 006 165 975 AFSL 230523
(“BIMAL”). BIMAL is a wholly-owned subsidiary of BlackRock, Inc. (collectively “BlackRock”).
BlackRock believes the information in this document is correct at the time of issue, but no warranty of
accuracy or reliability is given and no responsibility arising in any way for errors or omissions (including
responsibility to any person by reason of negligence) is accepted by BlackRock.
This information is general in nature, and has been prepared without taking into account any individual’s
objectives, financial situation, or needs.
Transaction costs are incurred when buying or selling units of an iShares fund on the Australian Securities
Exchange (“ASX”) and brokerage commissions may be charged if such trades are done through a broker.
Neither the performance nor the repayment of capital or any income (distributions) of an iShares fund is
guaranteed by any BlackRock entity. Past performance is not a reliable indicator of future performance. An
iShares fund is not actively managed. You cannot invest directly in an index. Current performance may be
higher or lower than the performance shown.
Units of an iShares fund trade on ASX at market price (not, net asset value ("NAV")). Units may only be
redeemed directly from an iShares fund by persons called “Authorised Participants”.
BIMAL is the Responsible Entity for the iShares funds quoted on ASX, and is the issuer of units in those
iShares funds. Each fund constitution provides that the liability of each unit holder is limited to its investment
in the fund. In addition to the normal risks associated with investing, there may be risks associated with
investments made by an iShares fund in smaller companies and those whose activities are narrowly focused.
The marks and names “UBS Treasury Index”, ”UBS Composite Bond Index” and “UBS Government Inflation
Index” are proprietary to UBS AG (“UBS”).
UBS has agreed to the use of, and reference to the UBS Treasury Index, UBS Composite Bond Index and
UBS Government Inflation Index (the “Indices”) by us in connection with the iShares UBS Treasury Index
Fund, iShares UBS Composite Bond Fund, iShares UBS Government Inflation Index Fund and this
document, but the funds are not in any way sponsored, endorsed or promoted by UBS.
The key symbol and UBS are among the registered and unregistered trademarks of UBS. “UBS Treasury
Index”, ”UBS Composite Bond Index” and “UBS Government Inflation Index” are services marks of UBS AG.
BIMAL alone has produced this marketing material, which has not been reviewed by UBS AG. UBS AG
assumes no responsibility for this marketing material.
2012 BlackRock. All rights reserved. iShares is a registered trademark of BlackRock Institutional Trust
Company, N.A. All other trademarks, servicemarks, or registered trademarks are the property of their
respective owners.
its iShares business has launched three new Australian fixed income exchange traded funds (ETFs) on the
Australian Securities Exchange (ASX) today.
The new funds extend the number of iShares ETFs available on the ASX to 26, covering Australian fixed
income as well as Australian and international equity indices. iShares is the largest provider of ETFs globally.
Mark Oliver, Managing Director of iShares Australia, said:
“This week Australian investors can readily gain exposure to a diversified range of high quality Australian
bonds on the ASX for the first time. The ability to trade fixed income ETFs empowers investors to easily
manage and adjust their asset allocation.
“Market variations over the past few years have highlighted the importance of portfolio diversification and
liquidity. We believe investors are now rediscovering the valuable role that defensive, income-generating
assets, like high quality Australian fixed income can play in their investment portfolios.
“Our three new ground-breaking iShares ETFs aim to track the pre-eminent UBS index series. Our research
shows that UBS indices are the most recognised and respected benchmark series relied upon by Australian
fixed income investors.”
Details of the three new Australian fixed income ETFs are as follows:
iShares UBS Composite Bond (IAF)
• Aims to track the performance of the UBS Australia Composite Bond Index, before fees and expenses,
• Investing in investment grade fixed income securities issued by the Australian Treasury, Australian State
Governments, supranational, sovereign and corporate entities.
Mgt Cost+% pa - 0.24
iShares UBS Treasury (IGB)
• Aims to track the performance of the UBS Treasury Index, before fees and expenses.
• Investing in investment grade fixed income securities issued by the Australian Commonwealth Government.
Mgt Cost+% pa - 0.26
iShares UBS Government Inflation (ILB)
• Aims to track the performance of the UBS Government Inflation Index, before fees and expenses.
• Investing in investment grade fixed income securities issued by the Australian Commonwealth Government and Australian State Government.
Mgt Cost+% pa - 0.26
(+Total management fees and expenses as a percentage of net asset value.)
Duncan Haig, Head of fixed income, UBS said:
“We are delighted to be working with iShares as they enhance access to Australia’s high quality fixed income
markets for investors. In seeking a benchmark partner for their new ETFs, iShares placed significant
emphasis on market coverage, track record, and the overall reputation of the index provider.”
Steve Miller, Head of Fixed Income, BlackRock Australia said:
“In a world of uncertainty, the hunt for a combination of defensive resilience, income, as well as positive
investment returns more generally, is especially challenging. Many Australians have migrated to bank
deposits for safety.
“But a focus on safety at all costs can have a price. It may mean missing out on the potential for capital gains
from fixed income investments that can occur when equity markets are volatile. This potential capital gain
feature of fixed income and its negative correlation with equities is absent from bank deposits.
“Australia is one of only a handful of countries that can boast a top-level ranking from each of the three major
debt rating agencies, potentially making Australian government bonds must-have assets for defensive core
portfolios.”
According to BlackRock’s latest Exchange Traded Product (ETP) Landscape report (February 2012), fixed
income ETPs attracted US$4.4 billion in net new assets in February 2012 bringing the YTD total to US$13.5
billion. The category captured 25.8% of total global ETP YTD inflows, outperforming the first two months of
2011 when bond ETPs garnered 13.3% of global inflows.
ENDS
Further information is available at www.iShares.com.au
BACKGROUND INFORMATION
About iShares iShares is the global product leader in exchange traded funds with over 500 funds globally across
equities, fixed income and commodities, which trade on 20 exchanges worldwide. In Australia, iShares has 26 ETFs
listed on the Australian Securities Exchange (ASX), across both domestic and international indices. The first iShares ETF
was listed on the ASX in October 2007. The iShares funds are bought and sold like common securities on securities
exchanges. The iShares funds are attractive to many individual and institutional investors and financial intermediaries
because of their relative low cost, liquidity and trading flexibility. Investors can purchase and sell shares or units (as the
case may be) through any brokerage firm, financial adviser, or online broker, and hold the funds in any type of brokerage
account. The iShares customer base consists of the institutional segment of superannuation plans and fund managers,
as well as the retail segment of financial advisers and individual investors. Visit iShares.com.au for further information.
About BlackRock
BlackRock is a leader in investment management, risk management and advisory services for institutional and retail
clients worldwide. At December 31, 2011, BlackRock’s AUM was $3.513 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 December 31, 2011, the firm has approximately 10,100 employees in 27 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
IMPORTANT INFORMATION
Before investing in an iShares exchange traded fund, you should carefully consider whether such
products are appropriate for you, read the applicable product disclosure statement (“PDS”) available
at iShares.com.au and consult an investment adviser.
Issued by BlackRock Investment Management (Australia) Limited ABN 13 006 165 975 AFSL 230523
(“BIMAL”). BIMAL is a wholly-owned subsidiary of BlackRock, Inc. (collectively “BlackRock”).
BlackRock believes the information in this document is correct at the time of issue, but no warranty of
accuracy or reliability is given and no responsibility arising in any way for errors or omissions (including
responsibility to any person by reason of negligence) is accepted by BlackRock.
This information is general in nature, and has been prepared without taking into account any individual’s
objectives, financial situation, or needs.
Transaction costs are incurred when buying or selling units of an iShares fund on the Australian Securities
Exchange (“ASX”) and brokerage commissions may be charged if such trades are done through a broker.
Neither the performance nor the repayment of capital or any income (distributions) of an iShares fund is
guaranteed by any BlackRock entity. Past performance is not a reliable indicator of future performance. An
iShares fund is not actively managed. You cannot invest directly in an index. Current performance may be
higher or lower than the performance shown.
Units of an iShares fund trade on ASX at market price (not, net asset value ("NAV")). Units may only be
redeemed directly from an iShares fund by persons called “Authorised Participants”.
BIMAL is the Responsible Entity for the iShares funds quoted on ASX, and is the issuer of units in those
iShares funds. Each fund constitution provides that the liability of each unit holder is limited to its investment
in the fund. In addition to the normal risks associated with investing, there may be risks associated with
investments made by an iShares fund in smaller companies and those whose activities are narrowly focused.
The marks and names “UBS Treasury Index”, ”UBS Composite Bond Index” and “UBS Government Inflation
Index” are proprietary to UBS AG (“UBS”).
UBS has agreed to the use of, and reference to the UBS Treasury Index, UBS Composite Bond Index and
UBS Government Inflation Index (the “Indices”) by us in connection with the iShares UBS Treasury Index
Fund, iShares UBS Composite Bond Fund, iShares UBS Government Inflation Index Fund and this
document, but the funds are not in any way sponsored, endorsed or promoted by UBS.
The key symbol and UBS are among the registered and unregistered trademarks of UBS. “UBS Treasury
Index”, ”UBS Composite Bond Index” and “UBS Government Inflation Index” are services marks of UBS AG.
BIMAL alone has produced this marketing material, which has not been reviewed by UBS AG. UBS AG
assumes no responsibility for this marketing material.
2012 BlackRock. All rights reserved. iShares is a registered trademark of BlackRock Institutional Trust
Company, N.A. All other trademarks, servicemarks, or registered trademarks are the property of their
respective owners.