IShares Treasury ETF (ASX: IGB)
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iShares Treasury ETF (ASX: IGB) Product Disclosure Statement Dated 2 March 2012 iShares Treasury ETF ARSN 154 626 865 BlackRock Investment Management (Australia) Limited ABN 13 006 165 975 Australian Financial Services Licence No 230523
Purpose of this SPDS No. 4
Supplementary Product 1. Fund name change
Disclosure Statement No. 4 Effective from 29 September 2014 the Fund’s name changed
from “iShares UBS Treasury ETF” to “iShares Treasury ETF”.
iShares Treasury ETF As a result, effective from 29 September 2014, all references
in the PDS to “iShares UBS Treasury ETF” are deleted and
(ASX: IGB) replaced with “iShares Treasury ETF”.
ARSN 154 626 865 2. Change to Index provider
iShares Treasury ETF (known prior to 29 September 2014 As a result of Bloomberg Finance L.P.’s’ acquisition of certain
as iShares UBS Treasury ETF) Australia bond indices, effective from 29 September 2014 the
following amendments are made to the PDS:
BlackRock Investment Management (Australia) Limited
ABN 13 006 165 975 a. All references in the PDS to the below UBS index names are
Australian Financial Services Licence No 230523 deleted and replaced with the applicable below Bloomberg
index name:
Date: 29 September 2014
UBS Index Name Bloomberg Index Name
This Supplementary Product Disclosure Bloomberg AusBond Treasury
Statement No. 4 is dated 29 September 2014 UBS Treasury Index SM
Index
(“SPDS No. 4”) and updates the Product UBS Composite Bond Index
TM Bloomberg AusBond
SM
Disclosure Statement dated 2 March 2012 Composite Index
(“PDS”), as amended by Supplementary Product b. All references in the PDS to “UBS” are deleted and replaced
Disclosure Statement dated 24 December 2012 with “Bloomberg”.
(“SPDS No. 1”), Supplementary Product c. Section 4.3, titled “About the Index” (on pages 5 and 6 of
Disclosure Statement No. 2 dated 4 February the PDS), is deleted and replaced with the following new
section 4.3:
2014 (“SPDS No. 2”) and Supplementary Product
Disclosure Statement No. 3 dated 1 July 2014 “4.3 About the Index
SM
(“SPDS No. 3”) for the iShares Treasury ETF (the The Bloomberg AusBond Treasury Index is designed to
“Fund”, known prior to 29 September 2014 as measure the performance of the Australian bond market
which meets certain investment criteria and covers fixed
iShares UBS Treasury ETF). This SPDS No. 4 interest bonds issued in the Australian debt market under
must be read in conjunction with the PDS, SPDS Australian law.
No. 1, SPDS No. 2 and SPDS No. 3. SM
The Bloomberg AusBond Treasury Index , a sub-index of
SM
A copy of this SPDS No. 4 has been lodged with the Bloomberg AusBond Composite Index , is an index of
valuations of the debt securities which are included in it.
the Australian Securities and Investments Below is a description of the manner in which the debt
Commission (“ASIC”) and released to the securities included are determined and also a description of
Australian Securities Exchange (“ASX”). Neither the manner in which valuations are determined.
ASIC nor ASX take any responsibility for the The Bloomberg AusBond Treasury Index
SM
has been
contents of this SPDS No. 4. calculated since 31 March 1988.
This SPDS No. 4 sets out the following changes Which debt securities can be included in the Bloomberg
SM
to the Fund: AusBond Treasury Index ?
The debt securities which are included in the Bloomberg
SM
AusBond Treasury Index are selected by Bloomberg
based on eligibility criteria. The key eligibility criteria for the
debt securities which are included in the Bloomberg
SM
AusBond Treasury Index are that the debt securities:
► are of a minimum quality which is determined by
reference to levels published by independent service
providers and bond rating firms. In addition, if any debt
securities fall below that minimum quality then those
debt securities are removed and the Bloomberg
SM
AusBond Treasury Index is rebalanced (as further
described below);
► are issued by the Australian Treasury (Commonwealth
Government debt securities);
► are denominated in Australian dollars;► are governed by the law of an Australian State or d. Section 10.9, titled “Index provider disclaimer” (on page 22
Territory or the Commonwealth of Australia; of the PDS), is deleted and replaced with the following new
section 10.9:
► were issued in a minimum issue size of AUD 100 million.
“10.9 Index disclaimer
In addition to the above, certain debt securities are
SM SM
excluded from the Bloomberg AusBond Treasury Index , BLOOMBERG, the Bloomberg AusBond Treasury Index
SM
these include: convertible notes, zero coupon notes, private and Bloomberg AusBond Composite Index are
placements, collateralised debt obligations, collateralised trademarks or service marks of Bloomberg Finance L.P. and
bond obligations and collateralised fund obligations, its affiliates (collectively, "Bloomberg"). Bloomberg or
synthetic securitizations, hybrid capital securities and Bloomberg's licensors own all proprietary right in the
SM
perpetual securities. Bloomberg AusBond Treasury Index and Bloomberg
SM
AusBond Composite Index . Bloomberg does not
The different debt securities are included in the Bloomberg
SM guarantee the timeliness, accuracy or completeness of any
AusBond Treasury Index on the basis of their gross
data or information relating to the Bloomberg AusBond
market value proportions, not on an equally weighted basis, SM
Treasury Index or the Bloomberg AusBond Composite
and these proportions can be rebalanced on a daily basis. SM
Index . Bloomberg makes no warranty, express or implied,
Such rebalancings can occur, for example, when interest is SM
as to the Bloomberg AusBond Treasury Index or the
received on the debt securities, the debt securities are SM
Bloomberg AusBond Composite Index or any data or
redeemed or mature, or when there is a new issue of debt
values relating thereto or results to be obtained therefrom,
securities which are to be included in the Bloomberg
SM and expressly disclaims all warranties of merchantability
AusBond Treasury Index (which occurs at the beginning
and fitness for a particular purpose with respect thereto. It
of the following month). Rebalancing is performed on the
is not possible to invest directly in an index. Back-tested
basis that interest and principal received on the debt
performance is not actual performance. To the maximum
securities are reinvested in all of the debt securities
SM extent allowed by law, Bloomberg, its licensors, and its and
comprising the Bloomberg AusBond Treasury Index and
their respective employees, contractors, agents, suppliers
on the basis that it is performed in market value
and vendors shall have no liability or responsibility
proportions at the day’s closing prices. As the Bloomberg
SM whatsoever for any injury or damages - whether direct,
AusBond Treasury Index includes the value of reinvested
indirect, consequential, incidental, punitive or otherwise -
interest and principal payments made on the debt
arising in connection with the Bloomberg AusBond Treasury
instruments included in it, it is considered as a capital SM SM
Index or the Bloomberg AusBond Composite Index or
accumulation index - which means that it is designed to
any data or values relating thereto - whether arising from
measure the total return from investing in those debt
their negligence or otherwise. Nothing in the Bloomberg
securities. SM
AusBond Treasury Index or the Bloomberg AusBond
SM
How are the valuations of those debt securities Composite Index shall constitute or be construed as an
determined? offering of financial instruments or as investment advice or
SM
The Bloomberg AusBond Treasury Index is a gross market investment recommendations (i.e., recommendations as to
value weighted index. All debt instruments are valued by whether or not to “buy”, “sell”, “hold”, or to enter or not to
BVAL, Bloomberg’s securities valuation service. BVAL enter into any other transaction involving any specific
provides credible, transparent and defensible valuations interest or interests) by Bloomberg or its affiliates or a
across a broad spectrum of financial instruments, including recommendation as to an investment or other strategy by
fixed income, derivatives and structured notes. These Bloomberg or its affiliates. Data and other information
SM
prices are completely independent, drawing on contributors available via the Bloomberg AusBond Treasury Index or
SM
relevant to the market. This broad global dataset of market the Bloomberg AusBond Composite Index should not be
observations is combined with market-leading analytics and considered as information sufficient upon which to base an
Bloomberg’s terms and conditions databases to produce investment decision. All information provided by the
SM
objective third-party pricing with deep transparency into Bloomberg AusBond Treasury Index and Bloomberg
SM
how the prices are derived.” AusBond Composite Index is impersonal and not tailored
to the needs of any person, entity or group of persons.
Bloomberg and its affiliates do not express an opinion on
the future or expected value of any security or other
interest and do not explicitly or implicitly recommend or
suggest an investment strategy of any kind.”
Terms used in this SPDS No. 4 have the same meaning as in
the PDS, SPDS No. 1, SPDS No. 2 and SPDS No. 3. Prior to
investing in the Fund, a prospective investor must take into
account and accept the foregoing information, as well as the
information disclosed in the PDS, SPDS No. 1, SPDS No. 2 and
SPDS No. 3.
2 iShares Treasury ETF Supplementary Product Disclosure Statement No. 4Supplementary Product
Disclosure Statement No. 3
iShares UBS Treasury ETF
(ASX: IGB)
ARSN 154 626 865
BlackRock Investment Management (Australia) Limited
ABN 13 006 165 975
Australian Financial Services Licence No 230523
Date: 1 July 2014
This Supplementary Product Disclosure Purpose of this SPDS No. 3
Statement No. 3 is dated 1 July 2014 (“SPDS No. 1. Changes to fee disclosure
3”) and updates the Product Disclosure Effective from 1 July 2014, the following amendments are
Statement dated 2 March 2012 (“PDS”), as made to the PDS:
amended by Supplementary Product Disclosure i. the “Consumer Advisory Warning” within section 6.1, titled
Statement dated 24 December 2012 (“SPDS No. “Consumer Advisory Warning” (on page 12 of the PDS), is
1”) and Supplementary Product Disclosure deleted and replaced with the Consumer Advisory Warning
Statement No. 2 dated 4 February 2014 (“SPDS as shown below.
No. 2”) for the iShares UBS Treasury ETF (the
“Fund”). This SPDS No. 3 must be read in DID YOU KNOW?
conjunction with the PDS, SPDS No. 1 and SPDS Small differences in both investment performance and fees
and costs can have a substantial impact on your long-term
No. 2. returns.
A copy of this SPDS No. 3 has been lodged with For example, total annual fees and costs of 2% of your
the Australian Securities and Investments account balance rather than 1% could reduce your final
Commission (“ASIC”) and released to the return by up to 20% over a 30 year period (for example,
reduce it from $100,000 to $80,000).
Australian Securities Exchange (“ASX”). Neither
ASIC nor ASX take any responsibility for the You should consider whether features such as superior
investment performance or the provision of better member
contents of this SPDS No. 3. services justify higher fees and costs.
This SPDS No. 3 sets out the following changes You may be able to negotiate to pay lower contribution fees
to the Fund: and management costs where applicable. Ask the fund or
your financial adviser.
TO FIND OUT MORE
If you would like to find out more, or see the impact of the
fees based on your own circumstances, the Australian
Securities and Investments Commission (ASIC) website
(www.moneysmart.gov.au) has a managed investment fee
calculator to help you check out different fee options.Amount
Type of fee or cost If you are no If you are an How and when paid
an Authorised Authorised
Participant Participant
Fees when your money moves in or out of the Fund.
Establishment Fee. The fee to
Nil Nil Not applicable.
open your investment.
The $300 fixed fee to create Units in the Fund is
applicable only to Authorised Participants at the time of
Contribution Fee. The fee on each $300 to create creation as only Authorised Participants are able to apply
amount contributed to your Nil units in the for Units in the Fund.
investment. Fund If you are not an Authorised Participant, you will not be
charged a contribution fee for your initial or any additional
investments.
The $300 fixed fee to redeem Units in the Fund is
applicable only to Authorised Participants at the time of
$300 to redemption as only Authorised Participants are able to
Withdrawal Fee. The fee on each
redeem units redeem for Units in the Fund.
amount you take out of your Nil
in the Fund
investment. If you are not an Authorised Participant, you will not be
charged a withdrawal fee for your initial or any subsequent
redemption of investments.
Exit Fee. The fee to close your
Nil Nil Not applicable.
investment.
Management costs. The fees and costs for managing your investment.
Management Fee. Until Current Current The management fee is calculated on the NAV of the Fund
Unitholders receive notice to the Management Management on a daily basis and is payable monthly or as otherwise
contrary, this will be charged as Fee: Fee: incurred by the Fund. The deduction of the management
one management fee 0.26% p.a. 0.26% p.a. fee is reflected in the unit price of the Fund.
Service fees.
Switching Fee. The fee for
Nil Nil No specific switching fee is applicable.
changing investment options.
ii. the fee table within section 6.2, titled “Fees and other iv. the example of annual fees and costs table and the
costs” (on page 12 of the PDS), is deleted and replaced paragraph immediately below it within the “Example of
with the fee table as shown above. annual fees and costs for the Fund” subsection of section
6.3, titled “Additional explanation of fees and costs” (on
iii. the “Alternative forms of remuneration” subsection within
page 14 of the PDS), are deleted and replaced with the
section 6.3, titled “Additional explanation of fees and
example of annual fees and costs table as shown below.
costs” (on page 14 of the PDS), is amended by adding the
following paragraph to the end of the subsection:
“BlackRock will only make these payments to the extent
that they are permitted by law.”
Example of annual fees and costs for the Fund
Balance of $50,000 with a contribution of $5,000 during year
► Nil (if you are not an For every additional $5,000 you put in, you will be charged:
Authorised Participant); or ► $0 if you are not an Authorised Participant; or
Contribution Fee
► $300 (if you are an ► $300 if you are an Authorised Participant creating units in the Fund.
Authorised Participant
PLUS
And, for every $50,000 you have in the Fund you will be charged $130
Management Costs 0.26% per year
each year.
EQUALS
If you had an investment of $50,000 at the beginning of the year and you put in an additional $5,000
during that year you would be charged fees of:
Cost of Fund
$300 + $130 = $430.
What it costs you will depend on whether you are an Authorised Participant and the fees you negotiate.
Please note this is an example. In practice, the actual investment balance of an investor will vary and the actual fees we charge are based on
the value of the Fund, which also fluctuates. The amounts assume a constant investment of $50,000 throughout the year and do not take into
account any additional contributions made during the year. Management Fees will also be charged in relation to additional contributions.
2 iShares UBS Treasury ETF Supplementary Product Disclosure Statement No. 32. Change to Privacy Policy We take reasonable steps to ensure that any recipients of your
personal information do not breach the privacy obligations
A number of changes to Australia’s privacy laws have come
relating to your personal information.
into effect designed to set standards, rights and obligations in
connection with personal information we hold about you. We, BlackRock, Inc. and its related bodies corporate may use
your information on occasion, to inform you by telephone,
As a result of these changes, effective from 1 July 2014, the
electronic messages (like email), online and other means,
text under section 10.13 of the PDS, titled “Privacy Policy” (on
about other services or products offered by us or them. We
page 23), is deleted and replaced with the following:
may do this on an ongoing basis, but you may opt out at any
“We collect your personal information for the primary purpose time.
of establishing and administering your investments with us,
If you wish to opt out, update or request access to your
communicating with you and providing you with access to
information, obtain a copy of our Privacy Policy or raise any
protected areas of our websites. We also collect some
queries or concerns regarding privacy, you may contact our
personal information to meet our obligations, under the Anti-
Privacy Officer by contacting our Client Services Centre on
Money Laundering and Counter-Terrorism Financing Act and
1300 366 100 or emailing clientservices@blackrock.com.au.”
the Corporations Act. We use and disclose personal
information to administer your investment, conduct product 3. ASIC Relief
and market research, and deal with your concerns. We collect
Effective from 1 July 2014, the relief disclosure, as detailed
personal information through our interactions with you, as well
within section 10.15 of the PDS, titled “ASIC Relief” (on page
as in some instances from your financial adviser or other
24), is amended by deleting the text under the subsection titled
authorised representative, your organisation, public sources
“Periodic Statements” (as previously inserted by SPDS No. 1)
and information brokers. BlackRock may take steps to verify
and replacing it with the following:
information collected.
“Under ASIC Class Order [CO 13/1200], if BlackRock is not
We are unable to process your application and provide you with
aware of the price at which a Unitholder bought or sold Units
the requested investment without your personal information.
on the ASX, periodic statements are not required to include
We ask that you advise us of any changes to the personal
details of the transaction price, nor the return on investment
information you have provided. If you provide us with personal
during the period, provided that the periodic statement
information about any other individuals (e.g. directors) you
explains why this information is not included and describes
must ensure that they are aware of this privacy section.
how it can be obtained or calculated.”
A Privacy Policy setting out further details of our handling of
Terms used in this SPDS No. 3 have the same meaning as in
personal information is available upon request or from our
the PDS, SPDS No. 1 and SPDS No. 2. Prior to investing in the
website at www.blackrock.com.au. The Privacy Policy contains
Fund, a prospective investor must take into account and
information about how you can access and seek correction of
accept the foregoing information, as well as the information
your personal information, about how you can complain or
disclosed in the PDS, SPDS No. 1 and SPDS No. 2.
enquire about breaches of your privacy and about how we will
deal with your complaint or enquiry.
We may disclose your information to our related bodies
corporate and to our service providers who assist us with,
among other things, data storage and archiving, auditing,
accounting, customer contact, legal, business consulting,
banking, payment, data processing, data analysis, information
broking, research, website and technology services. Your
personal information may be disclosed to Australian and
overseas regulatory authorities on reasonable request by those
authorities. We may also disclose your information to external
parties on your behalf, such as your financial adviser, unless
you have instructed otherwise.
BlackRock operates as a global organisation and to this end,
functions generally operate from dedicated centres which also
provide shared services around the globe. Typically, personal
information collected in relation to an investment in our funds
may be disclosed to our related body corporate located
offshore currently in Singapore. Personal information
(generally other than personal information held in relation to
individual investors) may be held within applications on our
portfolio management system or client relationship
management system which are potentially accessible by our
related body corporates in any country in which the BlackRock
Group has an office. A list of those countries is available
through a link found in our Privacy Policy. Key data is held at
locations in Australia, the United States and the United
Kingdom either at a BlackRock related party site or third party
site.
iShares UBS Treasury ETF Supplementary Product Disclosure Statement No. 3 3Supplementary Product
Disclosure Statement No. 2
dated 4 February 2014
iShares UBS Treasury ETF
(ASX: IGB)
Dated 4 February 2014
iShares UBS Treasury ETF (known prior to 4 February 2014
as iShares UBS Treasury Index Fund)
ARSN 154 626 865
BlackRock Investment Management (Australia) Limited
ABN 13 006 165 975
Australian Financial Services Licence No 230523
This Supplementary Product Disclosure Purpose of this SPDS No. 2
Statement No. 2 is dated 4 February 2014 Fund name change
(“SPDS No. 2”) and updates the Product
Effective from 4 February 2014 the Fund’s name changed from
Disclosure Statement dated 2 March 2012 “iShares UBS Treasury Index Fund” to “iShares UBS Treasury
(“PDS”), as amended by Supplementary Product ETF”.
Disclosure Statement dated 24 December 2012 As a result, effective from 4 February 2014, all references in
(“SPDS No. 1”) for the iShares UBS Treasury the PDS to “iShares UBS Treasury Index Fund” are deleted and
Inflation ETF (the “Fund” known prior to 4 replaced with “iShares UBS Treasury ETF”.
February 2014 as iShares UBS Treasury Index Terms used in this SPDS No. 2 have the same meanings as in
Fund). This SPDS No. 2 must be read in the PDS and SPDS No. 1. Prior to investing in the Fund, a
conjunction with the PDS and SPDS No. 1. prospective investor must take into account and accept the
foregoing information, as well as the information disclosed in
A copy of this SPDS No. 2 has been lodged with the PDS and SPDS No.1.
the Australian Securities and Investments
Commission (“ASIC”) and released to the
Australian Securities Exchange (“ASX”). Neither
ASIC nor ASX take any responsibility for the
contents of this SPDS No. 2.
This SPDS No. 2 sets out the following change to
the Fund:iShares UBS Treasury Index
Fund (ASX: IGB)
Supplementary Product
Disclosure Statement
Dated 24 December 2012
iShares UBS Treasury Index Fund
ARSN 154 626 865
BlackRock Investment Management (Australia) Limited
ABN 13 006 165 975
Australian Financial Services Licence No 230523
This Supplementary Product Disclosure Purpose of this SPDS
Statement (“SPDS”) is dated 24 December 2012 1. Change in registered trademark ownership
and updates the Product Disclosure Statement
Ownership of the iShares® trademark has been transferred
dated 2 March 2012 (“PDS”) for the iShares UBS within the BlackRock Group of companies from BlackRock
Treasury Index Fund (the “Fund”). This SPDS Institutional Trust Company, N.A to BlackRock Fund Advisors.
must be read in conjunction with the PDS. The sentence referencing iShares® as being a registered
A copy of this SPDS has been lodged with the trademark of BlackRock Institutional Trust Company, N.A., as
disclosed at the end of the “About iShares®” section on page
Australian Securities and Investments 4 of the PDS is deleted in its entirety and replaced with the
Commission (“ASIC”) and released to the following:
Australian Securities Exchange (“ASX”).
“iShares® is a registered trademark of BlackRock Fund
Neither ASIC nor ASX take any responsibility Advisors or its affiliates.”
for the contents of this SPDS.
2. Risk disclosure
This SPDS sets out the following changes to the The Fund’s risk disclosure, as detailed within the “Risks”
Fund: section on pages 9 to 11 of the PDS is amended by adding the
following paragraph immediately after the paragraph in the
Risks section titled “Index risk” on page 11 of the PDS:
“Index-Related Risks
In order to meet its investment objective, the Fund will seek to
achieve a return which reflects the return of the Index, as
published by the index provider. While index providers do
provide a description of what each index is designed to
achieve, index providers do not generally provide any warranty
or accept any liability in relation to the quality, accuracy or
completeness of data in respect of the their indices, nor any
guarantee that the published index will be in line with their
described benchmark index methodologies. Errors in respect
of the quality, accuracy and completeness of the data may
occur from time to time and may not be identified and
corrected for a period of time, in particular where an index is
less commonly used. During a period where an index contains
incorrect constituents, the Fund would have market exposure
to such constituents. As such, errors may potentially result in a
negative or positive performance impact to the Fund and to
Unitholders.Supplementary Product Disclosure Statement to the iShares UBS Treasury Index Fund Product Disclosure Statement dated 2 March 2012 Apart from scheduled rebalances, index providers may carry out additional ad hoc rebalances to their benchmark indices in order, for example, to correct an error in the selection of index constituents. Where the index is rebalanced and the Fund in turn rebalances its portfolio to bring it in line with the Index, any transaction costs and market exposure arising from such portfolio rebalancing will be borne by the Fund and, by extension, Unitholders. Therefore, errors and additional ad hoc rebalances carried out by an index provider may increase the costs and market exposure risk of the Fund.” 3. ASIC Relief The relief disclosure, as detailed within the “ASIC Relief” section on page 24 of the PDS is amended by adding the following paragraph immediately after the final paragraph in the ASIC Relief section on page 24 of the PDS: “Periodic Statements ASIC has granted relief under the Corporations Act so that BlackRock is not required to provide periodic statements to Unitholders under section 1017D(1) of the Corporations Act for each reporting period ending on or before 1 March 2013. For subsequent reporting periods ending before 1 January 2014, ASIC has granted relief under the Corporations Act so that periodic statements may disclose opening balances, closing balances, termination values, transaction details, increases in contributions, returns on investments and amounts paid by a Unitholder that are based on the unit net asset value for units or the last market price for Units as at the relevant transaction date, the date of settlement of the transaction or other relevant date. The ASIC relief commenced on 19 November 2012 and applies to the Fund while Units are able to be traded on AQUA Market of the ASX.” Terms used in this SPDS have the same meanings as in the PDS. Prior to investing in the Fund, a prospective investor must take into account and accept the foregoing information, as well as the information disclosed in the PDS.
2 iShares UBS Treasury Index Fund
iShares UBS Treasury Index Fund
Contents
1. Before you start 3 8. Distributions 17
1.1 The Issuer of this PDS 3 8.1 Receipt of income 17
1.2 About this Product Disclosure Statement 3 8.2 Distribution Reinvestment Plan 17
1.3 Changes to this PDS and access to additional 8.3 Distribution on redemption 17
information 3 8.4 Tax statement 17
1.4 Need help? 3
1.5 Offer eligibility 4
9. Taxation 18
9.1 Overview 18
2. About iShares® 4 9.2 Taxation of the Fund 18
9.3 Taxable income of the Fund 18
3. About BlackRock 4 9.4 Taxation of financial arrangements 18
3.1 Responsible Entity in Australia 4 9.5 Taxation of non-resident Unitholders 18
9.6 Tax File Number (TFN), Exemption and Australian
4. About the Fund 5 Business Number (ABN) 18
4.1 Investment objective and Fund strategy 5 9.7 Goods and Services Tax (GST) 19
4.2 What the Fund invests in 5 9.8 Taxation Reform 19
4.3 About the Index 5 9.9 Applications for redemptions by Authorised
4.4 Performance of the Index 6 Participants 19
4.5 Changes to the Index 6 9.10 Acquisition and disposal of Units on the ASX AQUA
4.6 Rebalancing the Fund 6 market 19
4.7 Benefits of iShares 6
4.8 Additional Information 7 10. Additional information 20
4.9 About the AQUA Rules 7
10.1 No Cooling Off Rights 20
4.10 Announcements to ASX 8
10.2 Reporting requirements 20
4.11 Securities lending 8
10.3 Legal 20
10.4 Termination of the Fund 21
5. Risks 9
10.5 Compliance Plan 21
6. Fees and other costs 12 10.6 Auditor 21
6.1 Consumer Advisory Warning 12 10.7 Market maker 21
6.2 Fees and other costs 12 10.8 Conflicts of Interest and Related Party Information 21
6.3 Additional explanation of fees and other costs 13 10.9 Index provider disclaimer 22
6.4 Fund performance and size 14 10.10 Registrar 22
10.11 Custody 23
7. Primary market matters 15 10.12 Receipt of instructions 23
7.1 Applications for creations and redemptions 15 10.13 Privacy Policy 23
7.2 Minimum creation and redemption size 15 10.14 Complaints 23
7.3 Applications for creations 15
10.15 ASIC Relief 24
7.4 Applications for redemptions 15
10.16 ASX Waiver 24
7.5 Processing of applications for creations and
redemptions 15
7.6 Calculation of Unit prices 16 11. Corporate directory 25
7.7 Calculation of settlement value for creations and
redemptions 16 12. Glossary 26
7.8 Fund liquidity 16
IMPORTANT INFORMATION: Neither the performance of the Fund offered in this Product Disclosure Statement nor the repayment
of capital or any income from the Fund is guaranteed by BlackRock Investment Management (Australia) Limited, or any member of
the BlackRock Group of companies. Investment products are subject to investment risk, and possible delays in repayment and
loss of income and principal invested. This Product Disclosure Statement can only be used by investors receiving it (electronically
or otherwise) in Australia.3
1. Before you start 1.3 Changes to this PDS and access to additional
information
1.1 The Issuer of this PDS
Certain information in this PDS is subject to change.
Investment in the iShares UBS Treasury Index Fund We will notify you of any changes or other significant
(referred to in this Product Disclosure Statement events that affect the information in this PDS (and may
("PDS") as the “Fund”) is offered and managed by issue a supplementary or replacement PDS) in
BlackRock Investment Management (Australia) Limited accordance with our obligations under the Corporations
ABN 13 006 165 975, AFS Licence No. 230523 Act. Updated performance information, fund size,
(referred to in this PDS as “BlackRock”, the current Unit prices and other general information
“Responsible Entity”, the “Issuer”, the “Manager”, “we”, relating to the Fund can be obtained:
“our” or “us”).
► from our website at au.iShares.com;
BlackRock is the Issuer of this PDS and of Units in the
► from your financial adviser; or
Fund. Neither BlackRock nor any of our associates or
related bodies corporate guarantees the success of the ► by contacting our iShares Call Centre (refer to the
Fund, the achievement of the investment objective, or Corporate Directory section of this PDS for contact
the repayment of capital or particular rates of return on details).
investment or capital.
We may update this PDS (including the terms and
An investor in the Fund could lose all or a substantial features of the Fund where we can according to the
part of their investment in the Fund. In particular, the Fund’s constitution and the law) with changes that are
performance of the Fund will depend on the not materially adverse without issuing a supplementary
performance and market value of the assets held by the PDS. Any such updates may be obtained by visiting our
Fund as a result of tracking its underlying index. website at au.iShares.com, or by contacting our iShares
Call Centre (refer to the Corporate Directory section of
1.2 About this Product Disclosure Statement
this PDS for contact details). A paper copy of any
This PDS describes the main features of the Fund and is updated information is available free of charge upon
dated 2 March 2012. request.
A copy of this PDS has been lodged with the Australian The offer or invitation to subscribe for Units in the Fund
Securities and Investments Commission (“ASIC”) and under this PDS is subject to the terms and conditions
ASX Ltd (“ASX”). Neither ASIC nor the ASX take any described in this PDS. We reserve the right to accept
responsibility for the contents of this PDS. An or decline applications in full or in part and reserve the
application for quotation on the ASX has been made to right to change these terms and conditions.
the ASX and as at the date of this PDS quotation has
This PDS can only be used by investors receiving it
not commenced. No applications for Units will be
(electronically or otherwise) in Australia.
accepted until the exposure period for the Fund, as
required by the Corporations Act 2001 (Cth) (the In addition, certain Fund portfolio information will only
"Corporations Act"), has expired. Once the exposure be made available to Authorised Participants in relation
period has expired BlackRock may determine when to their activities as Authorised Participants.
applications for Units can be accepted.
1.4 Need help?
In preparing this PDS, we did not take into account your
particular investment objectives, financial situation or If you have questions about the Fund described in this
needs. As the needs and aspirations of investors differ, PDS speak to your financial adviser.
you should consider whether investing in the Fund is Should you require general assistance with respect to
appropriate for you in light of your particular needs, an iShares product, please call the iShares Call Centre
objectives and financial circumstances. You may also (refer to the Corporate Directory section of this PDS for
wish to obtain independent advice. contact details).
If you have received this PDS electronically, we can Further information on the different iShares funds listed
provide you with a paper copy free of charge upon on ASX is available at au.iShares.com or from your
request by contacting the iShares Call Centre (refer to financial adviser.
the Corporate Directory section of this PDS for contact
details).4 iShares UBS Treasury Index Fund
1.5 Offer eligibility 3. About BlackRock
The offer in this PDS is only available to Authorised
BlackRock, Inc.® (“BlackRock, Inc.”) is a premier
Participants who have, where required, entered into a
provider of global investment management, risk
relevant Authorised Participant Agreement (“AP
management and advisory services to institutional and
Agreement”).
retail clients around the world. Through BlackRock
The minimum initial investment for Units in the Fund is Solutions® – an outgrowth of our longstanding
10,000 Units and the minimum amount for subsequent investment in sophisticated, integrated systems – we
applications for creations and redemptions is also offer risk management services and enterprise
10,000 Units per transaction. investment system outsourcing to a broad base of
institutional portfolios.
Investors who are not Authorised Participants cannot
invest through this PDS but may do so through the ASX. BlackRock, Inc., through its subsidiaries (the
Please consult your stockbroker or financial adviser. “BlackRock Group”), directly manages investments on
behalf of institutional and retail clients from around the
Investors who are not Authorised Participants may use globe. The BlackRock Group has asset management
this PDS for informational purposes only and may teams covering all major asset classes, across many
obtain further information in relation to the Fund by investment styles and regions globally. Through cutting
contacting the Registrar (refer to the Corporate edge systems, capabilities and an unqualified
Directory section of this PDS for contact details). commitment to teamwork and communication across
all its investment capabilities, the BlackRock Group
delivers an unparalleled breadth of perspective and
2. About iShares® insights to the management of all its client portfolios.
iShares are exchange traded funds ("ETFs"), which are Headquartered in New York, the BlackRock Group
managed funds quoted on exchanges around the world operates offices in different countries, maintaining a
(including the ASX). ETFs are designed to give investors major presence in most key markets including the
the opportunity to buy or sell a diversified portfolio of United States, the United Kingdom, Asia, Australia, the
assets in a single transaction. Middle East and Europe.
The name of each iShares fund generally refers to the BlackRock, Inc. is the largest provider of ETFs in the
fund’s underlying index. The provider of that index is world through its iShares family, which consists of over
responsible for choosing the components of the index 470 funds and approximately US$ 620 billion of assets
and their weightings within the index. under management. A range of international iShares
have been cross-listed on the ASX since October 2007.
There are many types of indices, some are narrow, At June 30, 2011, BlackRock’s AUM was $3.659 trillion.
tracking a single market sector with minimal holdings,
while others are as broad as the entire market with 3.1 Responsible Entity in Australia
hundreds of holdings. This means investors can use BlackRock Investment Management (Australia) Limited
iShares to gain the exposure and diversification they is the responsible entity of the Fund. BlackRock
want. Investment Management (Australia) Limited is a wholly-
iShares is the world leader in ETFs with over 470 owned subsidiary of BlackRock, Inc. but is not
products offering interests in ETFs and trading on guaranteed by any member of the BlackRock Group,
exchanges worldwide. These products account for including BlackRock Inc. When you invest with
approximately 40 per cent of the global ETF market as BlackRock you are gaining the expertise of an
at the date of this PDS. Over the past ten years, experienced team of Australian investment
iShares has cemented its position as the world leader professionals across the full spectrum of investment
through commitment to high quality products, investor styles and asset classes, including equities, fixed
education and superior client service. income, alternatives, and multi-asset class solutions,
backed by the international resources and knowledge
iShares ETFs were first launched in Australia in October of the world’s largest asset manager.
2007. As at the date of this PDS, there are 19 cross-
listed iShares ETFs and 4 domestic iShares ETFs quoted We are a member of the Financial Services Council
on the ASX, across both international and domestic (FSC).
shares.
iShares ETFs are brought to you by BlackRock, one of
the world’s leading investment managers and itself an
index-investing pioneer over many decades.
BlackRock’s strength and stability are just some of the
reasons for choosing iShares ETFs.
iShares® is a registered trademark of BlackRock
Institutional Trust Company, N.A.5
4. About the Fund Which debt securities can be included in the UBS
Treasury Index?
4.1 Investment objective and Fund strategy
The debt securities which are included in the UBS
The Fund aims to provide investors with the Treasury Index are selected by UBS, from time to time,
performance of the market, before fees and expenses, based on eligibility criteria. The key eligibility criteria
as represented by the UBS Treasury Index (the “Index”). for the debt securities which are included in the UBS
Treasury Index are that the debt securities:
The Fund seeks to achieve its objective by employing a
full replication strategy to track the performance of the ► are of a minimum quality which is determined by
Index. If we determine that we can achieve a more reference to levels published by independent
efficient means of obtaining exposure to the Index, we service providers and bond rating firms. In addition,
may do so. For example, in rare circumstances where a if any debt securities fall below that minimum
particular Index constituent security cannot be quality then those debt securities are removed and
acquired, a combination of existing or similar securities the UBS Treasury Index is rebalanced (as further
in the Index, of like quality, would be used. However, described below);
the Fund will not invest in financial derivative
► are issued by the Australian Treasury
instruments. Where required by the ASX Operating
(Commonwealth Government debt securities);
Rules, we will not significantly change the Fund’s
investment objective, as described in this PDS, unless ► are denominated in Australian dollars;
the change in objective has been approved by a
resolution passed by at least 75% of votes cast by
► are governed by the law of an Australian State or
Unitholders who vote on the resolution at a meeting of Territory or the Commonwealth of Australia;
Unitholders. ► were issued in a minimum issue size of AUD 100
4.2 What the Fund invests in million; and,
In order to achieve its objective the Fund invests
► have a final maturity of less than 50 years.
primarily in Investment Grade fixed income securities In addition to the above, certain debt securities are
which reflect the minimum quality standard required to excluded from the UBS Treasury Index, these include:
be included in the Index, and which are issued by the convertibles notes, zero coupon notes, private
Australian Commonwealth Government. placements, collateralised debt obligations,
Whilst the Constitution of the Fund allows the collateralised bond obligations and collateralised fund
Responsible Entity to borrow on behalf of the Fund, it is obligations, synthetic securitisations or hybrid capital
our intention that no borrowing arrangements will be securities.
entered into by the Fund other than temporary The different debt securities are included in the UBS
overdrafts which may be used as a means of managing Treasury Index on the basis of their gross market value
certain cash flows. proportions, not on an equally weighted basis, and
As the Fund aims to track the performance of the Index, these proportions can be rebalanced on a daily basis.
investment decisions are independent of labour Such rebalancings can occur, for example, when
standards or environmental, social or ethical interest or principal is received on the debt securities,
considerations. the debt securities are redeemed or mature, or when
there is a new issue of debt securities which are to be
4.3 About the Index included in the UBS Treasury Index (which occurs at the
beginning of the following month). Rebalancing is
The UBS Treasury Index is designed to measure the
performed on the basis that interest and principal
performance of the Australian bond market which
received on the debt securities are reinvested in all of
meets certain investment criteria and covers fixed
the debt securities comprising the UBS Treasury Index
interest bonds issued in the Australian debt market
and on the basis that it is performed in market value
under Australian law.
proportions at the day’s closing prices.
The UBS Treasury Index, a sub-index of the UBS
As the UBS Treasury Index includes the value of
Composite Bond IndexTM, is an index of valuations of
reinvested interest and principal payments made on the
the debt securities which are included in it. Below is
debt instruments included in it, it is considered as a
set out a description of the manner in which the debt
capital accumulation index - which means that it is
securities included in it are determined and also a
designed to measure the total return from investing in
description of the manner in which valuations are
those debt securities.
determined.
The UBS Treasury Index has been calculated since 31
March 1988.6 iShares UBS Treasury Index Fund
How are the valuations of those debt securities 4.6 Rebalancing the Fund
determined?
The Fund will typically rebalance on a monthly basis in
The UBS Treasury Index is a gross market value line with the Index. However, as stated above, the
weighted index. This means that all debt instruments proportions of debt securities within the Index may be
are valued using a determination of the price which an rebalanced intra-month and as often as daily by the
investor would pay to acquire the debt instrument. This Index provider. The Fund may rebalance intra-month in
price includes the value of future interest payments line with Index activity or to manage the overall
which are to be made under the debt securities. exposure to remain within an acceptable tolerance as
determined by the Manager.
These prices for debt instruments making up the UBS
Treasury Index are taken from the firm closing prices at 4.7 Benefits of iShares
the end of the day from active UBS trading books. UBS
Each iShares fund is a managed fund listed or quoted
employs periodic price testing to verify that its prices
on exchanges (including ASX) providing you with the
are consistent with market pricing.
opportunity to gain exposure to a diversified portfolio of
Involvement of UBS AG entities in the Index assets in a single transaction.
UBS AG provides the UBS Treasury Index. Conflicts of The benefits of investing in iShares funds include:
interest may exist between UBS AG in this role and UBS
► Diversification: In contrast to a direct investment in
AG entities acting in other capacities. For example, a
a single company or bond, an iShares fund provides,
UBS AG entity may act as the issuer of or an obligor
as far as practicable or efficient, and possible,
under a debt security and as a dealer, calculation agent
exposure to all of the securities or instruments
or hedge provider in relation to a debt security. Various
within the index, which the particular iShares fund
conflicts of interest may arise as a result of these
seeks to track. Notwithstanding, there may be a
different roles as well as from the overall activities of
concentration of bonds issued by Australian
UBS AG entities. UBS AG entities shall be entitled to
Commonwealth or State governments in the case of
receive fees or other payments and exercise all rights,
fixed income iShares funds, and each fixed income
including rights of termination or resignation, which
iShares fund will invest only in debt securities and
they may have, even though this may have a
not in other asset classes, such as equities.
detrimental effect on the Issuer, the constituent debt
instruments, an index or the Units. ► Liquidity and transparency: Each iShares fund seeks
investment results that correspond generally to the
4.4 Performance of the Index
performance (before fees and expenses) of a
Information relating to the past performance of the particular index. As a traded security, an iShares
Index can be found on our website at au.iShares.com. fund enables you to enter and exit your holding on
It is important to note that past performance is not a the ASX. You can easily track performance and
reliable indicator of future performance. trade during the ASX’s trading hours (subject to
ASX rules).
4.5 Changes to the Index
► Managing risk: Investing in an iShares fund can
BlackRock has no present intention to change the Index
assist you in establishing a portfolio appropriate to
adopted by the Fund.
your investment needs and suit your risk profile.
BlackRock will not substitute the Index for another ► Lower cost: As each iShares fund is passively
index if to do so would significantly change the Fund's
managed and designed to follow a particular
investment objective as described in this PDS, unless,
underlying index, the expenses of managing a fund
where required by the ASX Operating Rules, the change
are generally lower compared to other forms of
of investment objective has been approved by a
retail managed funds. However, brokerage or
resolution passed by at least 75% of votes cast by
adviser fees may still apply when buying or selling
Unitholders who vote on the resolution at a meeting of
an ETF.
Unitholders.
► Receipt of income: You will generally receive regular
income from your investment in the form of
distributions. Distributions will normally include
interest and other income. There may be periods in
which no distributions are made.
► Accessibility: iShares offer a cost-effective way to
gain exposure to a diversified portfolio of securities.
They can be less costly than purchasing a large
number of individual securities as there are less
trading costs and they offer lower thresholds than
an investor might otherwise be able to afford.7
4.8 Additional Information 4.9 About the AQUA Rules
The following information can be obtained from our The Fund is quoted on the ASX under the AQUA Rules.
website at au.iShares.com: The AQUA Rules have been designed to offer greater
flexibility and are specifically designed for managed
► the Fund's daily Net Asset Value (“NAV”) as at the
funds, ETFs and structured products.
close of the previous trading day for the Fund;
As most investors are more familiar with the ASX
► where possible, and subject to availability, the
Listing Rules, it is important to note the main
Fund’s estimated intra-day NAV current to a time
differences between the AQUA Rules and the ASX
which is no more than 15 minutes before the time
Listing Rules, which are set out below.
the estimate is last available. It should be noted
that the estimated intra-day NAV is an indicative ASX Listing Rules ASX AQUA Rules
figure only and may be subject to error; Control
A person: A person:
► the Fund's daily NAV per Unit (“NAV Price”) as at
the close of the previous trading day for the Fund. ► controls the value of its ► does not control the value
It should be noted that the NAV Price is that which own securities and the of the assets underlying
is applied to a creation or redemption application business it runs, its products, but
received prior to the close of trading on any
► the value of those ► offersproducts that give
Business Day, as per section 7.5;
securities is directly investors exposure to the
► copies of the latest PDS; influenced by the equity underlying assets – such
issuer's performance and as shares, indices,
► daily underlying holdings of the Fund, including the
name and percentage composition of each asset by conduct. currencies or
commodities.
value relative to NAV as at the close of the previous e.g. the management and
trading day for the Fund; board generally control the The value (price) of products
► copies of Annual Financial Reports (the Fund’s fate of the business and, quoted under the AQUA
financial year ends 30 June); therefore, have direct Rules is dependent upon the
influence over the share performance of the
► copies of Semi-Annual Financial Reports; and price. underlying assets rather
than the financial
► distributions (if declared).
performance of the issuer
Where the Fund is subject to the continuous disclosure itself.
requirements of the Corporations Act, we will satisfy
e.g. A managed fund issuer
our obligations by disclosing material information
does not control the value of
regarding the Fund on our website at au.iShares.com.
the shares it invests in.
A paper copy of this material will be available from
BlackRock free of charge upon request. This Continuous disclosure
information will also be released to the ASX via the ASX Products under the ASX Issuers of products quoted
Markets Announcements Platform (asxonline.com.au). Listing Rules are subject to under the AQUA Rules are
Certain Fund portfolio information will only be made the continuous disclosure not subject to the
available to Authorised Participants in relation to their requirements under ASX continuous disclosure
activities as Authorised Participants. Listing Rule 3.1 and section requirements under ASX
674 of the Corporations Act Listing Rule 3.1 and section
Prices of the underlying securities that form the Index
2001. 674 of the Corporations Act
will not be publicly available to investors at the point of
2001 but must disclose
sale as there is no consolidated source that reports
information about:
prices of trades. Such information is generally only
available to certain wholesale clients, as defined by the ► the Net Tangible Assets
Corporations Act. (“NTA”) or the Net Asset
Value (“NAV”) of the
funds;
► dividends,distributions
and other disbursements;
and
any other information that is
required to be disclosed to
ASIC under section 675 of
the Corporations Act 2001
must be disclosed to ASX via
the ASX Company
Announcement Platform at
the same time it is disclosed
to ASIC.8 iShares UBS Treasury Index Fund
ASX Listing Rules ASX AQUA Rules ASX Listing Rules ASX AQUA Rules
Periodic disclosure Auditor rotation
Products under the ASX Products quoted under the There are specific Issuers of products under
Listing Rules are required to AQUA Rules are not required requirements in relation to the AQUA Rules are not
disclose half yearly and to disclose half yearly and auditor rotation under Part subject to the requirements
annual financial information annual financial information 2M.4 Division 5 of the under Part 2M.4 Division 5 of
or annual reports under or annual reports under the Corporations Act 2001. the Corporations Act 2001.
Chapter 4 of the ASX Listing AQUA Rules.
The responsible entity of an
Rules.
However, because the Fund unlisted scheme quoted on
is a registered managed the AQUA market will
investment scheme, we are continue to be required to
still required to prepare undertake an independent
financial reports under audit of its compliance with
Chapter 2M of the the scheme’s compliance
Corporations Act 2001. plan in accordance with
These reports will be made section 601HG of the
available on our website at Corporations Act 2001.
au.iShares.com.
Disclosure
Corporate control Entities admitted under the Products quoted under the
Requirements in the Certain requirements in the ASX Listing Rules are subject AQUA Rules will also be
Corporations Act 2001 and Corporations Act 2001 and to the requirements of the subject to these
the ASX Listing Rules in the ASX Listing Rules in Corporations Act 2001 in requirements of the
relation to matters such as relation to matters such as relation to the issue of a Corporations Act 2001.
takeover bids, share buy- takeover bids, buy-backs, PDS.
backs, change of capital, change of capital, new
new issuers, restricted issuers, restricted securities, Source: ASX Rules Framework
securities, disclosure of disclosure of directors' 4.10 Announcements to ASX
directors' interests and interests and substantial
substantial shareholdings shareholdings that apply to All announcements (including continuous disclosure
apply to companies and companies and listed notices and distribution information) will be made to
schemes. schemes do not apply to the ASX via the ASX Markets Announcements Platform
products quoted under the (asxonline.com.au).
The responsible entity of a
AQUA Rules. 4.11 Securities lending
listed scheme may be
replaced by a resolution of Issuers of products quoted The Fund does not participate in a securities lending
members holding a majority under the AQUA Rules are program for lending any of the fixed income securities
of the votes cast on the subject to general in the portfolio.
resolution. requirement to provide the
ASX with any information
concerning itself that may
lead to the establishment of
a false market or materially
affect the price of its
products.
The responsible entity of an
unlisted scheme quoted on
the AQUA market may only
be replaced by a resolution
of members holding a
majority of votes that are
eligible to be cast on the
resolution.
Related party transactions
Chapter 10 of the ASX Chapter 10 of the ASX
Listing Rules, which relates Listing Rules does not apply
to transactions between an to AQUA products.
entity and persons in a
Unlisted schemes quoted on
position to influence the
the AQUA market remain
entity, specifies controls
subject to the related party
over related party
requirements in Part 5C.7
transactions.
and Chapter 2E of the
Corporations Act 2001.9
5. Risks Tracking error risk. The Net Asset Value of the Fund
may not correlate exactly with the Index. Factors such
What are the significant risks? as the fees and expenses of the Fund, imperfect
correlation between the Fund's assets and the
Before you make an investment decision it is important
securities constituting the Index, inability to rebalance
to identify your investment objectives and the level of
the Fund’s holdings of securities in response to
risk that you are prepared to accept. This may be
changes in the constituents of the Index, rounding of
influenced by:
prices, changes to the Index and regulatory policies
► the timeframe over which you are expecting a may affect the Responsible Entity's ability to achieve
return on your investment and your need for regular close correlation with the Index of the Fund. The Fund's
income versus long-term capital growth; returns may therefore deviate from the Index.
► your level of comfort with volatility in returns; or Concentration risk. If the Index of the Fund is
concentrated in a particular bond, group of bonds,
► the general and specific risks associated with industry or group of industries, the Fund may be
investing in particular funds. adversely affected by the performance of those bonds
General risks and be subject to price volatility. In addition, where the
Fund is concentrated in a single bond, group of bonds,
All investments have an inherent level of risk. industry or group of industries, it may be more
Generally, there is a trade off between higher expected susceptible to any single economic, market, political or
returns for higher expected risk – represented by the regulatory occurrence. There may be limited
variability of fund returns. The value of your investment counterparty diversification for the bonds comprising
will fluctuate with the value of the underlying the Index, as they may be concentrated to Australian
investments in the Fund. Investment risk may also government bonds, either Commonwealth or State.
result in loss of income or capital invested and possible
delays in repayment. You could receive back less than Government bonds risk. The price of government
you initially invested and there is no guarantee that you bonds will generally be affected by changing interest
will receive any income. rates.
What about the specific risks of this Fund? In periods of low inflation, the positive growth of a
government bond fund may be limited.
The significant risks for this Fund are discussed below.
The performance of the Fund will reflect the volatility of There is a risk to the Fund that the Australian Treasury
the Fund’s underlying investments. If these risks may not continue to issue government debt securities,
eventuate, your distributions may be lower than or may close down the Commonwealth Government
expected or there may be none, and the value of your securities market.
investment could fall. Liquidity risk. Certain bond markets (especially
The significant risks for this Fund may include: secondary markets) may be relatively illiquid. The cost
of dealing may be high in such illiquid markets. A
Market risk. Past performance is not indicative of disruption in the asset allocation in the Fund is also
future performance. The Net Asset Value of the Fund possible if underlying securities cannot be purchased or
will change with changes in the market value of the sold.
securities it holds. The price of Units and the income
from them may go down as well as up. Investors may Reliance on investment ratings risk. Credit rating
not get back their original investment. There can be no agencies assign various credit ratings to the individual
assurance that the Fund will achieve its investment securities that form part of a fund’s portfolio. These
objective or that an investor will achieve profits or avoid ratings vary based on the perceived quality of those
losses, significant or otherwise. The capital return and securities. For example, the term ‘Investment Grade’
income of the Fund is based on the capital appreciation denotes a certain level of quality of a security, which
and income on the securities it holds, less expenses has been ascribed by an independent rating agency or
incurred. The Fund’s return may fluctuate in response agencies, though no guarantee of investment
to changes in such capital appreciation or income. performance can be derived from this term. Grades
Furthermore, the Fund may experience volatility and determined by such agencies may form only one view
decline in a manner that broadly corresponds with the of the security and should not be relied upon in
Index. isolation. Further, ratings are provided by commercial
agencies that are paid for their services and therefore
Secondary market trading risk. Units of the Fund may potential conflicts may exist in the classification of
trade on the ASX when the Fund does not accept orders precise ratings grades. Rating agencies attempt to
to create or redeem Units. On such days, Units may pursue principles and maintain standards that deliver
trade in the secondary market with more significant effectiveness and reliability, however, neither an
premiums or discounts than might be experienced on accurate rating classification determined when a bond
days when the Fund accepts creation and redemption is issued, nor accurate review during the life of a bond,
orders. can be assured.You can also read
