“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:
First Day of Trading scheduled on or around April 5:
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.”
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.
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
Christine Hudacko, 415-670-2687
Diane Henry, 415-670-4567
Source: BlackRock, Inc.