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  • 1. The growing role of ETFs in today’s fixedincome allocationMay 2012FOR PROFESSIONAL INVESTORS ONLY
  • 2. FI ETFs: Why now?
  • 3. FI ETFs: The fastest growing ETP segment Global Fixed Income ETFs AUM YoY AUM Growth (%) $300 • 2011 Global ETPs: +3% $250 • 2011 FI ETFs: +24% $200 • 5 Yr Global ETPs: 79% $US Mill $150 • 5 Yr FI ETFs: +330% $100 $50 $0 Global FI ETFsSource: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg. Data as at end of April 2012 3
  • 4. Changing gears in fixed incomeinvesting
  • 5. Fixed income asset allocation matters Fixed income sectors: One year returns (%) 2011 2010 2009 2008 2007 German government bonds 18.1% 5.7% -1.1% 10.7% -6.1% US Treasuries 15.5% 7.0% -3.1% 15.0% 10.9% EM external debt 8.6% 12.1% 27.9% -12.3% 6.3% USD corporates 4.0% 3.2% 11.8% 0.1% -1.2% USD high yield 3.6% 11.9% 35.9% -22.4% 0.0% EUR corporates 1.9% 3.1% 15.5% -5.1% 0.1% EUR Inflation linked -1.3% 1.9% 8.7% 1.0% 2.8% EM local currency debt -1.9% 16.2% 29.0% n/a n/a EUR high yield -3.0% 9.7% 44.0% -29.3% -2.6%Source: Bloomberg. Data as at December 2011. Performance data based on total return indices. 5
  • 6. The power of diversification in fixed income … Broad equities and fixed income sectors: 5 year correlation Euro Euro MSCI FTSE Euro High Euro USD Stoxx 50 World S&P 500 100 MSCI EM Corps Yield Govies Corps EM DebtEuro EuroStoxx 50 100.0% Corps 100.0%MSCI Euro HighWorld 91.1% 100.0% Yield 65.1% 100.0%S&P 500 89.2% 97.5% 100.0% Euro Govies 43.8% -17.4% 100.0%FTSE100 89.2% 91.0% 89.0% 100.0% USD Corps 70.7% 41.8% 28.6% 100.0%MSCI EM 79.3% 90.6% 83.6% 80.6% 100.0% EM Debt 63.5% 73.3% 13.4% 71.3% 100.0% …has been greater than equities Source: Bloomberg. Data as at March 2012. Performance data based on total return indices. 6
  • 7. ETFs offer tight tracking of a benchmark Fund / index return (%) since inception 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% iShares Barclays Capital iShares Barclays Capital iShares Markit iBoxx Euro iShares Barclays Capital Euro Aggregate Bond Euro Treasury Bond High Yield Bond Euro Corporate Bond ex- Financials Fund return (%) Index return (%) iShares fixed income ETFs average annual performance since inception has been in line with the index after costsSource: BlackRock. Data as at 07 May 2012. Past performance does not guarantee future results.1. Average tracking difference per annum since inception for all iShares fixed income ETFs is +6bps after taking TER into consideration 7
  • 8. Finding opportunities in today’smarkets
  • 9. The changing character of Eurozone government debt Barclays Euro Treasury index: Historic YTM (%) and Volatility (%) 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 2002 2004 2006 2008 2010 2012 12 month Volatility 12 month Yield to Maturity Low nominal yields and increased volatilitySource: Bloomberg. Data as at 26 April 2012 9
  • 10. Broad Eurozone sovereign debt indices Traditional broad indices • Market capitalisation weighted EuroMTS • Minimum investment grade Lowest EuroMTS Barclays Rated Highest Euro • Highly diversified Government Rated Barclays Governme e.g. Barclays Euro Treasury index (ex-Lehman series) Investment Governm Euro nt Bond 5- Grade ent Bond Treasury 7Yr Term Liquid / Term focused indices • Market cap weighted with certain issuer restrictions Focus on bonds with higher amount outstanding Yield (%) 4.5% 2.3% 2.7% 1.85% • Less diversified Mod Duration e.g. Barclays Euro Government Bond 5-7year Term Index (%) 5.9% 6.5% 6.2% 5.3% Credit rating focused 12 month • Market cap weighted Return (%) 6.2% 10.4% 7.7% 10.8% • Specific credit rating rules 12 month • Less diversified Volatility e.g. EuroMTS Highest / Lowest Rated Government (%) 10.4% 5.3% 5.0% 4.5% Investment Grade Index Not a homogeneous asset class any moreSource: Bloomberg. Data as at 26 April 2012 10
  • 11. Tail risk characteristics of broad based Eurozone indices 5 year performance 1 year Risk/Return profile 150.00 12.00% 11.00% 140.00 10.00% 130.00 12 month Returns 9.00% 120.00 8.00% 110.00 7.00% 100.00 6.00% 90.00 5.00% 80.00 4.00% Apr 2007 Apr 2008 Apr 2009 Apr 2010 Apr 2011 Apr 2012 0.00% 5.00% 10.00% 15.00% 12 month Volatility EuroMTS Lowest Rated Government Investment Grade Index EuroMTS Highest Rated Government Bond Index EuroMTS Lowest Rated Government Investment Grade Index EuroMTS Highest Rated Government Bond Index Barclays Euro Treasury Barclays Euro Treasury Barclays Euro Government Bond 5-7Yr Term Barclays Euro Government Bond 5-7Yr TermSource: Barclays . Data as at end of April 2012 11
  • 12. A new approach to Eurozone government debt investing Italy Belgium High quality AAA Eurozone government debt France Spain Overweight domestic market Targeted exposure to single country Eurozone sovereign credit riskFor illustration purposes only 12
  • 13. Give me credit ! Global NNA into Investment Grade and High Yield ETFs $5.0 $4.0 $3.0 $2.0 $US Mn $1.0 $0.0 -$1.0 -$2.0 Investment Grade ETFs High Yield ETFsSource: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg. Data as at end of April 2012 13
  • 14. US Corporate Bonds: value in investment grade Spreads still attractiveUS corporate credit yield vs Treasuryyield 5.00 …companies remain cash rich 4.00 Cash as a % of corporate assets 3.00 2.00 16.0% 14.0% 12.0% 1.00 10.0% 8.0% 0.00 6.0% 1980 1981 1983 1985 1987 1988 1990 1992 1994 1995 1997 1999 2001 2002 2004 2006 2008 2009 2011 4.0% 2.0% Moodys Baa / 10yr Treasury Yield 0.0% 1986Q4 1987Q4 1988Q4 1989Q4 1990Q4 1991Q4 1992Q4 1993Q4 1994Q4 1995Q4 1996Q4 1997Q4 1998Q4 1999Q4 2000Q4 2001Q4 2002Q4 2003Q4 2004Q4 2005Q4 2006Q4 2007Q4 2008Q4 2009Q4 2010Q4 Cash as a Proportion of Nominal GDP Cash as a Proportion of Nonfinancial Assets Source: Bloomberg, BlackRock. Data as at end of Q1 2012. Corporate bond yields are based on Moody’s Corporate Baa Bond Index and a comparable Treasury index as at end of February 2012. Cash assets are as at end of Q3 2011, The Federal Reserve Bank of NY, Bloomberg. European corporate bond sector credit spreads are as at 20 March 2012, Barclays Capital. March 2012 14
  • 15. Europe: Corporates versus ex Financials LTRO driven spread rally LTRO-sparked tightening in European financials • Reduction in financial credit risk.. ccombined8.0% with absolute level of ex-financial yields • … leading to flows into broader European credit7.0% ETFs6.0%5.0%4.0% Modified OAS YTM (%) duration3.0% spread (%)2.0% Euro Corporates 3.31 3.94 212.41.0% Euro Corporates 2.68 4.10 166.5 ex Financials0.0% Financials 3.97 3.77 259.0 Industrials 2.58 3.97 163.1 Euro Corp Euro Corp ex Fin Utilities 3.03 4.70 182.3 German 5 Year BoblsSource: Barclays Capital. As at 16 March 2012. Past performance is not an indication of future results. For more detail about Corporate Bond ETFs please read ISI report “Yield in CorporateBond ETFs” 15
  • 16. Hunt for yield: Is there still value in current HY spreads? 1 year default rate versus credit Credit risk premium versus default spread breakevenbps bps1600 14% 9001400 800 12% 7001200 10% 6001000 8% 500 800 6% 400 600 300 4% 400 200 200 2% 100 0 0% 0 Jan 87 Jan 89 Jan 91 Jan 93 Jan 95 Jan 97 Jan 99 Jan 01 Jan 03 Jan 05 Jan 07 Jan 09 Jan 11 Jan 87 Jan 89 Jan 91 Jan 93 Jan 95 Jan 97 Jan 99 Jan 01 Jan 03 Jan 05 Jan 07 Jan 09 Jan 11 $US HY Credit spread 12MF Forecast Default Rate $US HY Credit Risk PremiumSource: BlackRock. Data as at February 2012 16
  • 17. High Yield ETFs Rising HY ETFs popularity …as they meet investors demand for 5.0 Instant access 4.0 Diversification 3.0 Liquidity 2.0 …In an higher risk asset class 1.0 -(1.0)(2.0) Mar Apr Oct Mar Jan Jun Aug Sep Jan May Nov Dec Feb Jul Feb High Yield ETFsSource: BlackRock. Past performance does not guarantee future results. Flow data as at March 2012. Global Flows into High Yield Bond ETPs (2011 to Mar 2012, USD Bn.) 17
  • 18. Know your index: Markit iBoxx EUR Liquid High Yield Index Index credit rating breakdown Credit quality • The index reflects the most highly rated bonds in the 3% below investment grade market and has a minimum 25% CCC cap BB B Liquidity CCC • The index includes only bonds with minimum amount outstanding of €250 million, therefore excluding smaller issues which may be illiquid 72% Mitigate single issuer risk • The index currently includes 252 bonds, while the weight of any single issuer is capped at 5% to ensure Index sector breakdown maximum diversification 4% Sector diversification 12% • The index is sufficiently diversified across multiple Industrials sectors 38% Consumers 17% Telecomms Financials Energy 29%Source: Markit iBoxx. Data as at 19 March 2012 18
  • 19. The Case for Emerging Market Debt • Whilst the debt/GDP situation in developed markets as a whole is forecast to get worse before it improves… • … public finances in the emerging economies are expected to remain under control Debt and Deficits: EM and DM 300% General Government Gross Debt/ GDP 250% Japan 200% Greece 150% Ireland 100% US UK 50% Emerging Economies 0% 0% 5% 10% 15% 20% 25% 30% 35% General Government Net Lending or Borrowing/ GDPSource: IMF. Forecast change 2010 – 2016. equity index data based on 12 month distribution yield of corresponding iShares as at 20th December 2011. 19
  • 20. Hard Currency & Local Currency Flows• The general theme is persistent low interest rates in the developed world.• Substantial amount of capital seeking higher yields.• We anticipate further increases into allocation of EM Debt for institutional and retail investors alike. EM YTD cumulated inflows (% of AUM) – Local EM YTD cumulated inflows (% of AUM) – Hard Currency Currency 75%25%15% 55% 5% 35%-5% 15%-15% -5%-25% -25%-35% 2012 2011 2010 2009 2008 2012 2011 2010 2009 2008Source: EPFR Global, HSBC. As at 20 April 2012. 20
  • 21. iShares Emerging Market choices Local currency EM sovereign ETF: $ EM sovereign ETF: iShares Barclays Capital EM Local Government iShares JPMorgan $ Emerging Markets Bond 6% 8% 18% 18% 30% 8% 13% 12% 17% 6% 11% 6% 15% 16% 8% 8% Mexico Poland Brazil Turkey Philippines Brazil South Africa Malaysia Indonesia Mexico Russia Colombia Turkey Hungary Indonesia OthersSource: BlackRock. Data as at 19 March 2012 21
  • 22. DisclaimerRegulatory InformationBlackRock Advisors (UK) Limited, which is authorised and regulated by the Financial Services Authority (FSA), having its registered office at 12 ThrogmortonAvenue, London, EC2N 2DL, England, Tel +44 (0)20 7743 3000, has issued this document for access by Professional Clients only and no other person should relyupon the information contained within it. iShares plc, iShares II plc, iShares III plc, iShares IV plc, iShares V plc and iShares VI plc (together the Companies) areopen-ended investment companies with variable capital having segregated liability between their funds organised under the laws of Ireland and authorised by theFinancial Regulator.For investors in AustriaThe funds mentioned in this document are registered for public offer in Austria. The sales prospectuses for the Companies, complete and simplified, Key InvestorInformation Document and other documents as well as the annual and semi-annual reports have been published in Austria and are available free of charge fromRaiffeisen Zentralbank Österreich AG, Am Stadtpark 9, 1030 Vienna, the Austrian paying and information agent and are also available on the websitewww.ishares.com. UCITS schemes are required to replace the Simplified Prospectus with the Key Investor Information Document by 30 June 2012. In respect of theIrish-domiciled funds, the Companies intend to fulfil the requirements for treatment of all of their sub-funds as white funds. Therefore the Companies have anAustrian tax representative who calculates the Austrian Deemed Distributed Income figures once a year and files an electronic tax return with the Austrian Ministry ofFinance. However, it cannot be guaranteed that the requirements will be met in the future. The Companies reserve the right to give up the white status and to notundertake such tax filings.For investors in DenmarkThis document is directed at Professional Investors in Denmark only and are authorised by Finanstilsynet, the Danish Financial Supervisory Authority. Anyapplication for shares in the funds is on the terms of the prospectus, complete and simplified, for the Companies.Important information on the Companies is contained in the relevant Prospectus, Key Investor Information Document and other documents. UCITS schemes arerequired to replace the Simplified Prospectus with the Key Investor Information Document by 30 June 2012. Copies of all documentation can be obtained free ofcharge from (i) offices of the local agent in Denmark, Nordea Bank Danmark A/S, Strandgade 3, DK 0900 Copenhagen C, Denmark Tel: +45 33 33 33 01 Fax: +45 33 3310 31 email: issuerservice.dk@nordea.com and (ii) on the Companies internet website at the address www.iShares.com(http://www.ishares.com/global/content/europe/ishares_danish_country_supplement.pdf andhttp://www.ishares.com/global/content/europe/ishares_2_danish_country_supplement.pdf).This document is strictly confidential and may not be distributed withoutauthorisation from BlackRock Advisors (UK) Limited. In line with most other non-Danish funds, the iShares range will not have distributor status under Danish taxlaw, for which reason investors will generally be subject to tax based on the annual change in value of their investment irrespective of whether iShares are sold or not(mark-to-market taxation). For individuals this may be less tax efficient than upon investment in a comparable Danish investment fund with distributor status.For investors in FinlandThe funds mentioned are registered for public distribution in Finland and are authorised by the Finanssivalvonta (Fiva), the Financial Supervisory Authority (FIN-FSA),in Finland. Any application for shares in the funds is on the terms of the prospectus, complete and simplified, for the Companies. Important information on theCompanies is contained in the relevant Prospectus, Key Investor Information Document and other documents. UCITS schemes are required to replace the SimplifiedProspectus with the Key Investor Information Document by 30 June 2012. This document is strictly confidential and may not be distributed without authorisationfrom BlackRock Advisors (UK) Limited. 22
  • 23. DisclaimerFor investors in GermanyThe sales prospectus, complete and simplified prospectus and Key Investor Information Document, as well as the annual and semi-annual reports are available freeof charge from Commerzbank AG, Jürgen-Ponto-Platz 1, 60301 Frankfurt. In respect of the Irish-domiciled funds, the Companies intend to fulfil the prerequisites fortreatment of their sub-funds as so-called "transparent funds" pursuant to §§ 2 and 4 of the German Investment Tax Act (Investmentsteuergesetz – InvStG). UCITSschemes are required to replace the Simplified Prospectus with the Key Investor Information Document by 30 June 2012. However, it cannot be guaranteed that therequirements will be met. The Companies reserve the right to give up the "transparent status" and to not undertake the necessary publications.For investors in IsraelBlackRock Advisors (UK) Limited is not licensed under Israels Regulation of Investment Advice, Investment Marketing and Portfolio Management Law, 5755-1995. Noaction has been or will be taken in Israel that would permit a public offering or distribution of the Funds mentioned in this document to the public in Israel. The Fundsmentioned in this document have not been approved by the Israeli Securities Authority. In addition, the Funds mentioned in this document are not regulated under theprovisions of Israels Joint Investment Trusts law, 5754-1994 (the "Joint Investment Trusts Law"). This document has not been approved by the Israel SecuritiesAuthority and will only be distributed to Israeli residents in a manner that will not constitute "an offer to the public" under sections 15 and 15a of the Israel SecuritiesLaw, 5728-1968 (the "Securities Law") or section 25 of the Joint Investment Trusts Law, as applicable.The document is being offered to those categories of investors listed in the First Addendum (the "Addendum") to the Securities Law, ("Institutional Investors"); in allcases under circumstances that will fall within the private placement or other exemptions of the Joint Investment Trusts Law, the Securities Law and any applicableguidelines, pronouncements or rulings issued from time to time by the Israel Securities Authority. This document may not be reproduced or used for any otherpurpose, nor be furnished to any other person other than those to whom copies have been sent. Nothing in this document should be considered investment advice orinvestment marketing as defined in the Regulation of Investment Counselling, Investment Marketing and Portfolio Management Law, 5755-1995. This document doesnot constitute an offer to sell or solicitation of an offer to buy any securities, nor does it constitute an offer to sell to or solicitation of an offer to buy from any personor persons in any state or other jurisdiction in which such offer or solicitation would be unlawful, or in which the person making such offer or solicitation is notqualified to do so, or to a person or persons to whom it is unlawful to make such offer or solicitation.For investors in ItalyAny application for shares in the funds is on the terms of the prospectus, complete and simplified, for the Companies. The Shares of certain sub-funds in theCompanies have been admitted to listing in Italy and are currently listed on the Mercato Telematico Fondi of Borsa Italiana S.p.A. The list of the sub-funds listed inItaly, the Prospectus, complete and simplified, of the Companies, the Documento di quotazione of the iShares funds, the latest annual and semi annual report of theCompanies are published (i) on the Companies internet website at the address www.iShares.com (ii) on the Irish Stock Exchange internet website at the addresswww.ise.ie and (iii) on Borsa Italiana S.p.As website at the address www.borsaitalia.it. These documents are available for the public in Italian version withcertification that such documents are a faithful translation of the original documents. Investors are entitled to receive free of charge, even at home, a copy of theabove documents, upon written request forwarded to the Companies. Read the Prospectus, complete and simplified and Key Investor Information Document, beforeinvesting. UCITS schemes are required to replace the Simplified Prospectus with the Key Investor Information Document by 30 June 2012. For comprehensiveinformation on the expenses charged to a fund and fees applicable to investors, see the Documento di quotazione and the Prospectus, complete and simplified. 23
  • 24. DisclaimerFor investors in LuxembourgThe Companies have been notified to the Commission de Surveillance du Secteur Financier in Luxembourg in order to market their shares for sale to the public inLuxembourg and the Companies are notified Undertaking in Collective Investment for Transferable Securities (UCITS). The Companies have not been listed on theLuxembourg Stock Exchange, investors should contact their broker for further information. Investment is subject to the Prospectus, Key Investor InformationDocument and all documents (the main/umbrella Prospectus, complete and simplified, the Supplement[s], the latest and any previous annual and semi-annual reportsof the Companies and the Memorandum and Articles of Association of the Companies) will be available in the Luxembourg, free of charge, from the offices of theLocal Agent, BNP Paribas Securities Services, Luxembourg Branch 33, rue de Gasperich Howald – Hesperange L-2085 Luxembourg or by visiting the website onwww.iShares.com. UCITS schemes are required to replace the Simplified Prospectus with the Key Investor Information Document by 30 June 2012.For investors in NorwayThe funds mentioned are registered for public distribution in Norway and are authorised by Kredittilsynet, the Financial Supervisory Authority of Norway. Anyapplication for shares in the funds is on the terms of the prospectus, complete and simplified for the Companies. Important information on the Companies iscontained in the relevant Prospectus, Key Investor Information Document and other documents. UCITS schemes are required to replace the Simplified Prospectuswith the Key Investor Information Document by 30 June 2012. This document is strictly confidential and may not be distributed without authorisation from BlackRockAdvisors (UK) Limited.For investors in SpainThe funds mentioned are registered for public distribution in Spain the sales prospectus has been registered with the Spanish Securities Market Commission(Comisión Nacional del Mercado de Valores (CNMV)). The funds which are registered in the official registry of the Spanish Securities and Exchange Commission(CNMV) are iShares plc (registration number 801), iShares II plc (registration number 802) and iShares III plc (registration number 806). In order to check whichsubfunds pertaining to the aforementioned funds are registered for public distribution in Spain, the official registry CNMV must be always previously checked. Anyapplication for shares in the funds is on the terms of the prospectus, complete and simplified, for the Companies. Important information on the Companies iscontained in the relevant Prospectus, Key Investor Information Document and other documents, copies of which can be obtained free of charge on the Companiesinternet website at the address www.iShares.es. UCITS schemes are required to replace the Simplified Prospectus with the Key Investor Information Document by 30June 2012.For investors in SwedenThe funds mentioned are registered for public distribution in Sweden and are authorised by Finansinspektionen, the Swedish Financial Supervisory Authority. Anyapplication for shares in the funds is on the terms of the prospectus, complete and simplified, for the Companies. Important information on the Companies iscontained in the relevant Prospectus, Key Investor Information Document and other documents, copies of which can be obtained free of charge from offices of thelocal agent SEB, Merchant Banking, Custody Services, Global Funds, RB6, Rissnelden 110, SE-106 40 Stockholm, Sweden, Telephone: +46 8 763 5960, Fax + 46 8 2010 96. UCITS schemes are required to replace the Simplified Prospectus with the Key Investor Information Document by 30 June 2012.This document is strictlyconfidential and may not be distributed without authorisation from BlackRock Advisors (UK) Limited. 24
  • 25. DisclaimerFor investors in SwitzerlandThis document is directed at qualified investors only, as defined by Clause 10 (3) of the Swiss Act on Collective Investment Schemes (CISA) and Clause 6 of the SwissOrdinance on Collective Investment Schemes (CISO). Certain of the funds are not registered with the Swiss Financial Supervisory Authority FINMA which acts assupervisory authority in investment fund matters. In respect of these funds, the shares or units of these funds may not be offered or distributed in or from Switzerlandunless they are placed without public solicitation as such term is defined under the practice of the FINMA from time to time. With respect to those funds that are registered,the FINMA has authorised BlackRock Asset Management Schweiz AG, Claridenstrasse 25, 8002 Zurich, Switzerland, to act as Swiss Representative and JPMorgan ChaseBank, National Association, Columbus, Zurich branch, Dreikönigstrasse 21, 8002 Zurich, Switzerland, to act as Swiss Paying Agent of the Companies. The prospectus,complete and simplified, the Articles of Incorporation, the latest and any previous annual and semi-annual reports of the Companies as well as a list of purchases and salesundertaken on behalf of the Companies are available free of charge from the Swiss representative. Before investing please read the prospectus, complete and simplified,and Key Investor Information Document, copies of which can be obtained from the Swiss representative. UCITS schemes are required to replace the Simplified Prospectuswith the Key Investor Information Document by 30 June 2012.For investors in the NetherlandsThe Companies have been notified to the Authority Financial Markets in the Netherlands in order to market their shares for sale to the public in the Netherlands and theCompanies are, accordingly, investment institutions (beleggingsinstellingen) according to Section 2:72 Dutch Financial Markets Supervision Act of Investment Institutions.The Companies will consequently, in respect of such notification, be subject to the Netherlands Act on the Supervision of Investment Institutions, regulations enactedpursuant thereto and the supervision thereunder of the Authority Financial Markets. The Companies have been admitted to listing on the stock exchange of EuronextAmsterdam N.V. and are, consequently, subject to the regulations of Euronext Amsterdam N.V. Copies of all documents (the main/umbrella Prospectus, complete andsimplified, Key Investor Information Document, the Supplement[s], the latest and any previous annual and semi-annual reports of the Companies and the Memorandum andArticles of Association of the Companies) will be available in the Netherlands, free of charge, from the offices of the representative in the Netherlands, BlackRock Advisors(UK) Limited – Dutch Branch, Rembrandt Toren, 17th floor, Amstelplein 1, 1096 HA Amsterdam, Netherlands or by calling the Dutch representative’s information request lineon 0800 0233 466. UCITS schemes are required to replace the Simplified Prospectus with the Key Investor Information Document by 30 June 2012.For investors in the UKMost of the protections provided by the UK regulatory system do not apply to the operation of the Companies, and compensation will not be available under the UKFinancial Services Compensation Scheme on its default. The Companies are recognised schemes for the purposes of the Financial Services and Markets Act 2000.Important information is contained in the relevant prospectus, the simplified prospectus, Key Investor Information Document and other documents. UCITS schemes arerequired to replace the Simplified Prospectus with the Key Investor Information Document by 30 June 2012.Restricted InvestorsThis document is not, and under no circumstances is to be construed as an advertisement or any other step in furtherance of a public offering of shares in the United Statesor Canada. This document is not aimed at persons who are resident in the United States, Canada or any province or territory thereof, where the companies/securities are notauthorised or registered for distribution and where no prospectus has been filed with any securities commission or regulatory authority. The companies/securities may notbe acquired or owned by, or acquired with the assets of, an ERISA Plan. 25
  • 26. DisclaimerRisk WarningsInvestment in the products mentioned in this document may not be suitable for all investors. Past performance is not a guide to future performance and should not be the sole factor ofconsideration when selecting a product. The price of the investments may go up or down and the investor may not get back the amount invested. Your income is not fixed and mayfluctuate. The value of investments involving exposure to foreign currencies can be affected by exchange rate movements. We remind you that the levels and bases of, and reliefs from,taxation can change.BlackRock has not considered the suitability of this investment against your individual needs and risk tolerance. The data displayed provides summary information, investment shouldbe made on the basis of the relevant Prospectus which is available from BlackRock Advisors (UK) Limited.In respect of the products mentioned this document is intended for information purposes only and does not constitute investment advice or an offer to sell or a solicitation of an offer tobuy the securities described within. This document may not be distributed without authorisation from BlackRock Advisors (UK) Limited.Index DisclaimersBarclays Capital is a trade mark of Barclays Capital, the investment banking division of Barclays Bank PLC (Barclays Capital), and is used by BlackRock Advisors (UK) Limited underlicence. With a distinctive business model, Barclays Capital provides corporates, financial institutions, governments and supranational organisations with solutions to their financingand risk management needs. Barclays Capital compiles, maintains and owns rights in and to the Barclays Capital Emerging Markets Local Govt Bond, Barclays Capital Euro AggregateBond Index, Barclays Capital Euro Corporate Bond Index, Barclays Capital Euro Corporate ex Financials Bond Index and Barclays Capital Euro Treasury Bond Index (together theindices). iShares Barclays Capital Emerging Markets Local Govt Bond, iShares Barclays Capital Euro Aggregate Bond , iShares Barclays Capital Euro Corporate Bond , iShares BarclaysCapital Euro Corporate Bond ex-Financials and iShares Barclays Capital Euro Treasury Bond (the funds) are not sponsored, endorsed, sold or promoted by Barclays Capital andBarclays Capital makes no representation regarding the advisability of investing in the funds.Markit iBoxx is a registered trade mark of Markit Indices Limited and has been licensed for use by BlackRock Advisors (UK) Limited. Markit Indices Limited does not approve, endorse orrecommend BlackRock Advisors (UK) Limited or iShares plc. These products are not sponsored, endorsed or sold by Markit Indices Limited and Markit Indices Limited makes norepresentation regarding the suitability of investing in these products.Information and the JP Morgan EMBI Global Core Index™ (the Index) have been obtained from sources believed to be reliable, but J.P. Morgan Securities Inc (JPMorgan) does notwarrant its completeness or accuracy. The information and the Index are used with permission. The information and the Index may not be copied, used, or distributed withoutJPMorgan’s prior written approval. Copyright 2010, JPMorgan Chase & Co. All rights reserved. JPMorgan and the Index are trademarks of JPMorgan Chase & Co. and have beenlicensed for use for certain purposes by BlackRock Advisors (UK) Limited. iShares JPMorgan $ Emerging Markets Bond Fund (the Fund) which is based on the Index is not sponsored,endorsed, sold or promoted by JPMorgan and JPMorgan makes no representation regarding the advisability of trading in the Fund.iShares® and BlackRock® are registered trademarks of BlackRock, Inc., or its subsidiaries in the United States and elsewhere.© 2012 BlackRock Advisors (UK) Limited. Registered Company No. 00796793. All rights reserved. Calls may be monitored or recorded.© 2012 BlackRock, Inc. All Rights reserved. BLACKROCK, BLACKROCK SOLUTIONS, ALADDIN, iSHARES, LIFEPATH, SO WHAT DO I DO WITH MY MONEY, INVESTING FOR A NEWWORLD, and BUILT FOR THESE TIMES are registered and unregistered trademarks of BlackRock, Inc. or its subsidiaries in the United States and elsewhere. All other trademarks arethose of their respective owners. 26