iShares® iBonds® Sep 2016 Term Muni Bond ETF Nears Final Distribution Date
June 10 2016 - 9:00AM
Business Wire
ETF Shareholders to Receive Payout in
September
BlackRock (NYSE:BLK) announced today that iShares® iBonds® Sep
2016 Term Muni Bond ETF (NYSE:IBME) will, by design, cease trading
at the close of U.S. market hours on September 1, 2016. Leading up
to the final distribution date, the individual bonds in the ETF
mature and the fund transitions into short-term, tax-exempt
instruments and cash. Remaining shareholders can expect to receive
the entire amount of their proceeds in cash on or after September
8, 2016, subject to their brokerage processes.
The iShares iBonds Sep 2016 Term Muni Bond ETF will be the fifth
iShares Muni ETF to have its underlying holdings mature. The first
in the series, the iShares 2012 S&P AMT-Free Municipal Series
ETF, closed in August 2012. There are five additional iShares ETFs
in the series with end dates ranging from 2017 to 2021.
iShares iBonds Term Muni Bond ETFs are designed to offer
investors exposure to investment grade municipal bonds with the
benefits of both ETFs and bonds. Each fund contains a diversified
set of securities tracking an S&P AMT-Free Municipal Series
Index, and can be bought and sold daily on an exchange. Like a
bond, each fund has periodic distributions of income and a
pre-determined date when the fund will close and distribute all
proceeds out to shareholders.
About BlackRock
BlackRock is a global leader in investment management, risk
management and advisory services for institutional and retail
clients. At March 31, 2016, BlackRock’s AUM was $4.737 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
March 31, 2016, the firm had approximately 13,000 employees in more
than 30 countries and a major presence in 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 | Twitter: @blackrock_news |
Blog: www.blackrockblog.com | LinkedIn:
www.linkedin.com/company/blackrock
About iShares
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 March 31, 2016,
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
1 Based on $4.737 trillion in AUM as of 3/31/16.
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 and, if
available, summary 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.
Diversification and asset allocation may not protect against
market risk or loss of principal. 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.
Fixed income risks include interest-rate and credit risk.
Typically, when interest rates rise, there is a corresponding
decline in bond values. Credit risk refers to the possibility that
the bond issuer will not be able to make principal and interest
payments. There may be less information on the financial condition
of municipal issuers than for public corporations. The market for
municipal bonds may be less liquid than for taxable bonds. Some
investors may be subject to federal or state income taxes or the
Alternative Minimum Tax (AMT). Capital gains distributions, if any,
are taxable.
The iShares® iBonds® Muni ETFs (“Funds”) will terminate in
September or December of the year in the 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 final months prior to the Fund’s planned termination
date, its yield will generally tend to move toward prevailing
tax-exempt 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 municipal 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, issued, sold or
promoted by S&P Dow Jones Indices LLC, nor does this company
make any representation regarding the advisability of investing in
the Funds. BlackRock is not affiliated with the company listed
above.
©2016 BlackRock. All rights reserved. iSHARES, iBONDS and
BLACKROCK are registered trademarks of BlackRock. All other
marks are the property of their respective owners.
iS-18492-0616
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version on businesswire.com: http://www.businesswire.com/news/home/20160610005057/en/
BlackRockMelissa Garville,
212-810-5528Melissa.Garville@blackrock.comorPaul Young,
212-810-8142Paul.Young@blackrock.com
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