ishares Product Overview Q2 2015

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1 ishares Product Overview Q2 2015

2 About BlackRock BlackRock is a global leader in investment management, risk management and advisory services for institutional and retail clients. At September 30, 2015, BlackRock s AUM was US$4.506 trillion. BlackRock helps clients around the world meet their goals and overcome challenges with a range of products that include 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. As of September 30, 2015, the firm had approximately 12,900 employees in more than 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 blackrock.com/au. About ishares by BlackRock ishares is a global leader in exchange-traded funds (ETFs), with more than a decade of expertise and commitment to individual and institutional investors of all sizes. With over 700 funds globally across multiple asset classes and strategies and more than $1 trillion in assets under management as of September 30, 2015, ishares helps clients around the world build the core of their portfolios, meet specific investment goals and implement market views. ishares funds are powered by the expert portfolio and risk management of BlackRock, trusted to manage more money than any other investment firm. 1 Why ishares ETFs? ishares has been entrusted with more assets from more investors than any other ETF manager in the world 1. ishares Exchange Traded Funds (ETFs) blend the benefits of managed funds and shares. They can offer efficient, low-cost diversification, combined with flexibility and liquidity. ishares ETFs can be bought and sold on a stock exchange like shares. Like managed index funds, they typically contain a diversified portfolio of securities designed to track specific indices. Some indices are narrow, tracking a single market sector with minimal holdings, while others are as broad as the entire market with hundreds of holdings. This means investors can use ishares ETFs to gain the exposure and diversification they want quickly and simply. 1 Based on $4.506 trillion in AUM as of 9/30/15 [2] i SHARES DIVERSIFIED PRODUCT OVERVIEW MODEL PORTFOLIOS Q2 2015

3 Benefits of ishares ETFs ishares ETFs offer the below key benefits to investors: Diversification A single ETF trade provides instant exposure to a diversified portfolio of securities. This can help reduce concentration risk in portfolios. Performance ishares ETFs have delivered a sustained record of performance through tight tracking, deep liquidity, and institutional-quality indices. Cost Efficiency ishares ETFs can be a cost-effective way to gain exposure to a diversified portfolio of securities. They are generally less expensive than investing in actively managed fund and even some index funds. They can also be less costly than purchasing a large number of individual shares as there are less trading costs. Flexibility Like shares, ishares ETFs provide investors with the flexibility to trade at any time during market hours. Priced through out the trading day, ishares can be bought or sold like a share, through any stock broker, investment adviser or online trading platform. As ETFs trade like shares, they can be bought on margin and place limit and stop orders. Transparency With holdings published as often as daily, ishares ETFs are highly transparentyou always know exactly what you own. ETFs are also transparent around costs through upfront fees disclosure, so you know exactly what you are paying for. Liquidity ETFs can be as simple to buy and sell as individual shares. The listed nature of ETFs provides investors with the liquidity to react to changing market conditions quickly and simply. Tax Efficiency ETFs may prove tax efficient as a result of low levels of portfolio turnover. Also, trading in and out of ETFs does not increase portfolio turnover within the ETF, which can help keep them tax efficient. i SHARES PRODUCT OVERVIEW [3]

4 Using ishares ETF to build your investment portfolio ishares ETFs cover the investment landscape from all angles. You can invest by asset class, market capitalisation, country and sector. The simple and flexible nature of ishares ETFs means that they can play a central role in any investment portfolio. In consultation with your investment adviser, you can adopt any number of strategies using ishares ETFs. How ishares ETFs can help manage Risk ETFs are not guaranteed products just like any investment in the stock or bond market, your initial investment is subject to risks. As there are many different types of ETFs, there are some that are riskier than others. ETFs are designed to track an index, therefore they buy the same securities as that index and attempt to replicate the returns, minus the cost (fee) of the fund. There is a risk that there can be a divergence between the return of the index, and the return of the fund. It should be remembered that it is impossible for any investor to invest directly in an index. However, ETFs can help investors diversify across asset classes and risk exposures, customise active risk, and adjust expected portfolio volatility. Using ishares ETFs, investors can quickly and easily reduce exposure to equities in times of market volatility, at the same time increasing exposure to fixed income. [4] i SHARES PRODUCT OVERVIEW

5 Want to know more? blackrock.com/au/ishares IMPORTANT INFORMATION Before investing in an ishares exchange traded fund, you should carefully consider whether such products are appropriate for you, read the applicable prospectus or product disclosure statement ( PDS ) available at and consult an investment adviser. This document has been issued in Australia by BlackRock Investment Management (Australia) Limited ABN AFSL ( BIMAL ). Australian ishares funds: BIMAL is the responsible entity for the managed investment scheme Australian 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 ishares funds in smaller companies and those whose activities are narrowly focused. International ishares funds: BIMAL is the local agent and intermediary for international ishares funds issued by ishares (ishares, Inc. ARBN formed in Maryland, USA; ishares Trust ARBN organised in Delaware, USA. The liability of shareholders is limited). BlackRock Fund Advisors ( BFA ) serves as an advisor to the ishares funds that are registered with the United States Securities and Exchange Commission under the Investment Company Act of BFA is a subsidiary of BlackRock Institutional Trust Company, N.A ( BTC ). BTC is a wholly-owned subsidiary of BlackRock, Trades on ASX in the shares of an international ishares fund are settled using CHESS Depositary Interests (or CDIs ). An investment in an international ishares fund has different risk, performance and return factors compared to investments in other listed securities that do not have international exposure. This document provides general information only and has not been prepared having regard to your objectives, financial situation or needs. Before making an investment decision, you need to consider whether this information is appropriate to your objectives, financial situation and needs. Any potential investor should consider the latest disclosure document or PDS in deciding whether to acquire, or to continue to hold, an investment in any ishares exchange traded fund. BIMAL, its officers, employees and agents believe that the information in this document and the sources on which the information is based (which may be sourced from third parties) are correct as at the date of this document. While every care has been taken in the preparation of this document, no warranty of accuracy or reliability is given and no responsibility for this information is accepted by BIMAL, its officers, employees or agents. Except where contrary to law, BIMAL excludes all liability for this information. This document includes information that are strictly for illustrative and educational purposes only and is subject to change. Such information does not represent the actual current, past or future holdings or portfolio of any client of BIMAL. Any investment is subject to investment risk, including delays on the payment of withdrawal proceeds and the loss of income or the principal invested. While any forecasts, estimates and opinions in this document are made on a reasonable basis, actual future results and operations may differ materially from the forecasts, estimates and opinions set out in this document. BIMAL does not guarantee the repayment of capital or the performance of any product or rate of return referred to in this document. Past performance is not a reliable indicator of future performance. Transaction costs are incurred when buying or selling shares or units (as the case may be) of an ishares fund ( ishares securities ) on a market of the Australian Securities Exchange ( ASX ) and brokerage commissions may be charged if such trades are done through a broker. ishares securities trade on ASX at market price (not, net asset value ( NAV )). ishares securities may only be redeemed directly by persons called Authorised Participants. An ishares fund is not sponsored, endorsed, issued, sold or promoted by the provider of the index which a particular ishares fund seeks to track. No index provider makes any representation regarding the advisability of investing in the ishares funds. This document is not a securities recommendation. This document is not intended as an offer or solicitation with respect to the purchase or sale of any securities in any jurisdiction. No part of this document may be reproduced or distributed in any manner without the prior written permission of BIMAL BlackRock, Inc. All Rights reserved. BLACKROCK, ishares and the stylized i logo are registered and unregistered trademarks of BlackRock, Inc. or its subsidiaries in the United States and elsewhere. All other trademarks are those of their respective owners. ish