Seeks to maximize tax-free income through diversified exposure to
short-term municipal bonds
NEW YORK--(BUSINESS WIRE)--
BlackRock, Inc. (NYSE:BLK) announced today that its iShares Exchange
Traded Funds (ETFs) business, the world’s largest manager of ETFs, has
launched the iShares Short Maturity Municipal Bond ETF (BATS:MEAR).
iShares
Short Maturity Municipal Bond ETF is actively managed by BlackRock’s
municipal bond team with more than 25 years of investment experience and
backed by a dedicated municipal credit research team. An active approach
allows the portfolio management and research team to capitalize on
municipal opportunities along the front of the yield curve and across
the investment grade credit spectrum.
The fund seeks to maximize tax-free income through diversified exposure
to short-term municipal bonds by investing in tax-exempt municipal bonds
with maturities of less than five years. Under normal circumstances the
portfolio will have an effective duration of 1.2 years or less.
iShares Short Maturity Municipal Bond ETF extends iShares current suite
of short duration and municipal bond ETFs to provide investors with a
wide range of investment choices backed by the investment excellence of
BlackRock’s fixed income portfolio management team.
About BlackRock
BlackRock is a leader in investment management, risk management and
advisory services for institutional and retail clients worldwide. At
December 31, 2014, BlackRock’s AUM was $4.652 trillion. BlackRock helps
clients 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®. Headquartered in New York City, as of
September 30, 2014, the firm had approximately 12,100 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 www.blackrock.com
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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 December 31, 2014, 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
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 may not protect against market risk or loss of
principal. 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 Fund is not a money market fund and is not subject to the strict
rules that govern the quality, maturity, liquidity and other features of
securities that money market funds may purchase. Under normal
circumstances, the Fund’s investments may be more susceptible than a
money market fund is to credit risk, interest rate risk, valuation risk
and other risks relevant to the Fund’s investments. The Fund does not
seek to maintain a stable net asset value of $1.00 per share.
The Fund will hold securities with floating or variable interest rates
which may decline in value if their coupon rates do not reset as high,
or as quickly, as comparable market interest rates. Although floating
rate notes are less sensitive to interest rate risk than fixed rate
securities, they are subject to credit and default risk, which could
impair their value
The Fund is an actively managed ETF that does not seek to replicate the
performance of a specified index. The Fund may have a higher degree of
portfolio turnover than funds that seek to replicate the performance of
an index. Active funds typically charge higher fees than index-linked
products due to increased trading and research expenses that may be
incurred.
Effective duration is a measure of the Fund’s price sensitivity to
changes in yields or interest rates; however investors should be aware
that effective duration is not an exact measurement and may not reliably
predict a particular security’s price sensitivity to changes in yield or
interest rates.
The payment of a CLP Fee is intended to generate more quotes and trading
than might otherwise exist absent this payment, and that the security
leaving the Program may adversely impact a purchaser’s subsequent sale
of the security. Learn more at: http://www.ishares.com/us/products/liquidity-incentive-programs
The Funds are distributed by BlackRock Investments, LLC (together with
its affiliates, “BlackRock”).
©2015 BlackRock. All rights reserved. iSHARES and BLACKROCK
are registered trademarks of BlackRock. All other marks are the property
of their respective owners. iS-14933-0315
1 Based on 4.652T in AUM as of 12/31/14.
BlackRock, Inc.
Melissa Garville, 212-810-5528
Melissa.Garville@blackrock.com
or
Diane
Henry, 415-670-4567
Diane.Henry@blackrock.com
Source: BlackRock, Inc.