ETF Shareholders to Receive Payout in
December
BlackRock (NYSE:BLK) announced today that iShares® iBonds® Dec
2016 Term Corporate ETF (NYSE:IBDF) will, by design, cease trading
at the close of U.S. market hours on December 15, 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
December 21, 2016, subject to their brokerage processes.
IBDF will be the eighth of the iShares iBonds series to have
their underlying holdings mature, and will also be the third
corporate iBonds ETF maturing. The first in the series, the iShares
2012 S&P AMT-Free Municipal Series ETF closed in August 2012.
There are six additional iShares ETFs in the Municipal series with
end dates ranging from 2017 to 2022. There are 16 additional
iShares ETFs in the Corporate series with end dates ranging from
2017 to 2026.
iShares iBonds Corporate Bond ETFs are designed to offer
investors exposure to investment grade corporate bonds with
potential benefits of both ETFs and bonds. Each fund contains a
diversified set of securities and seeks to track a Barclays
Maturity Corporate 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 proceeds to shareholders.
About BlackRock
BlackRock is a global leader in investment management, risk
management and advisory services for institutional and retail
clients. At September 30, 2016, BlackRock’s AUM was $5.1 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, 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 September 30, 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 $5.117 trillion in AUM as of 9/30/16.
Carefully consider the Funds' investment objectives, risk
factors, and charges and expenses before investing. This and other
information can be found in the Funds' prospectuses or, if
available, the summary prospectuses which may be obtained by
visiting www.iShares.com or
www.blackrock.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.
The iShares® iBonds® ETFs (“Funds”) will terminate on or about
March 31 or December 31 of the year in each 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.
Unlike a direct investment in a bond that has a level coupon
payment and a fixed payment at maturity, the Fund(s) will make
distributions of income that vary over time. In the final months of
each Fund’s operation, as the bonds it holds mature, its portfolio
will transition to cash and cash-like instruments. As a result, its
yield will 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 in the bond market.
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’ distributions and
liquidation proceeds are not predictable at the time of investment
and the Funds do not seek to return any predetermined amount.
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 Barclays Capital Inc.
©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-19468-1016
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version on businesswire.com: http://www.businesswire.com/news/home/20161019006526/en/
BlackRockMelissa Garville,
212-810-5528Melissa.Garville@blackrock.comorPaul Young,
212-810-8142Paul.Young@blackrock.com
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