NEW YORK--(BUSINESS WIRE)--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.
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
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