“First-to-market” funds deliver comprehensive access to global high
yield markets, from developed to emerging
SAN FRANCISCO--(BUSINESS WIRE)--
BlackRock, Inc. (NYSE:BLK) announced that its iShares® Exchange Traded
Funds (ETFs) business, the world's largest manager of ETFs, launched two
new funds today with two more scheduled to launch on April 5. The new
funds include three “first to market” products designed to offer
exposure to high yield securities across the global developed and
emerging markets. The fourth new fund is an “ETF of iShares ETFs” that
seeks to provide single-trade access to a diversified set of income
sources.
“Market conditions – in particular, an unprecedented low rate
environment – continue to make it vital for investors of all kinds to
identify new sources of yield and income,” said Darek Wojnar, Head of
U.S. iShares Product Development and Management at BlackRock. “In many
cases, they need ready access to a broader range of global solutions for
yield and income.
“The new funds represent just the latest illustration of our dedication
to helping investors successfully navigate today’s highly challenging
yield and income landscape,” he said.
Offered on the BATS Exchanges, the four new funds are:
First Day of Trading on April 3:
-
iShares Emerging Markets High Yield Bond Fund (EMHY)
-
iShares Global ex USD High Yield Corporate Bond Fund (HYXU)
First Day of Trading scheduled on or around April 5:
-
iShares Global High Yield Corporate Bond Fund (GHYG)
-
iShares Morningstar Multi-Asset Income Index Fund (IYLD)
iShares Emerging Markets High Yield Bond Fund (EMHY), a first to
market product, provides access to high yield bonds denominated in USD
and includes a 65% allocation to sovereign bonds and 35% to corporate
issues. The new fund is designed to track the Morningstar Emerging
Markets High Yield Bond Index, a broad investable universe.
iShares Global ex USD High Yield Corporate Bond Fund (HYXU), a
first to market product, offers access to developed international
non-U.S. denominated high yield bonds, which are denominated in euros,
pound sterling and Canadian dollars. The fund’s highest country
allocations are France (15 percent), the United Kingdom (15 percent),
Germany (14 percent), and the Netherlands (12 percent). The fund is
designed to track the Markit iBoxx Global Developed Markets ex-US High
Yield Index.
iShares Global High Yield Corporate Bond Fund (GHYG), a first to
market product, provides complete global (U.S. and developed
international) high yield in a “one ticket” trade, via developed
international corporate bonds denominated in the USD, euros, the pound
sterling, and the Canadian dollar. Based on the country of the issuer,
the fund is allocated 69 percent to the U.S., 16 percent to Europe, 4
percent to the United Kingdom, and 3 percent to Canada. The fund is
designed to track the Markit iBoxx Global Developed Markets High Yield
Index.
“As investors have broadened their search for new income sources
globally, high yield has emerged as one of the market’s more significant
opportunities,” said Wojnar. “At the same time, high yield is an asset
class where investors can particularly benefit from well diversified
approach.
“Our three new high yield funds – in combination with our existing
iShares iBoxx $ High Yield Corporate Bond Fund – represent a complete
global, high yield tool kit, flexible enough to serve the widest
possible range of investor needs and interests across this asset class,”
he said. “This tool kit is literally a ‘one-stop’ global solution for
investors interested in high yield.”
The fourth new fund, iShares Morningstar Multi-Asset Income Index
Fund (IYLD), is an ETF of iShares ETFs that delivers income with a
diversified, managed approach. The fund is allocated 60 percent to fixed
income, 20 percent to equity and 20 percent to alternative income
sources. The new fund is designed to track the Morningstar Multi-Asset
High Income Index.
Wojnar said, “Investors are increasingly looking for diversification in
income streams and asset classes. The new iShares Morningstar
Multi-Asset Income Index Fund can help investors mitigate key risks in
any one particular asset class.”
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.
About iShares
iShares is the global product leader in exchange traded funds with over
460 funds globally across equities, fixed income and commodities, which
trade on 19 exchanges worldwide. The iShares Funds are bought and sold
like common stocks on securities exchanges. The iShares Funds are
attractive to many individual and institutional investors and financial
intermediaries because of their relative low cost, tax efficiency and
trading flexibility. Investors can purchase and sell shares through any
brokerage firm, financial advisor, or online broker, and hold the funds
in any type of brokerage account. The iShares customer base consists of
the institutional segment of pension plans and fund managers, as well as
the retail segment of financial advisors and high net worth individuals.
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, 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.
In addition to the normal risks associated with investing, international
investments may involve risk of capital loss from unfavorable
fluctuation in currency values, from differences in generally accepted
accounting principles or from economic or political instability in other
nations. Emerging markets involve heightened risks related to the same
factors as well as increased volatility and lower trading volume. Bonds
and bond funds will decrease in value as interest rates rise. High yield
securities may be more volatile, be subject to greater levels of credit
or default risk, and may be less liquid and more difficult to sell at an
advantageous time or price to value than higher-rated securities of
similar maturity. Asset allocation models and diversification do not
promise any level of performance or guarantee against loss of principal.
Investment in the iShares Morningstar Multi-Asset Income Index Fund is
subject to the risks of the underlying funds. There is no guarantee that
the Fund will generate high income.
Holdings are subject to change.
This material represents an assessment of the market environment at a
specific time and is not intended to be a forecast of future events or a
guarantee of future results. This information should not be relied upon
by the reader as research or investment advice regarding the funds or
any security in particular.
Transactions in shares of the iShares Funds will result in brokerage
commissions and will generate tax consequences. iShares Funds are
obliged to distribute portfolio gains to shareholders. 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.
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 Markit Indices Limited or Morningstar, Inc. Neither of these
companies make any representation regarding the advisability of
investing in the Funds. BlackRock is not affiliated with the companies
listed above.
* Not FDIC Insured * No Bank Guarantee * May Lose Value
BlackRock, Inc.
Media Relations:
Christine Hudacko,
415-670-2687
christine.hudacko@blackrock.com
Diane
Henry, 415-670-4567
diane.henry@blackrock.com
Source: BlackRock, Inc.