NEW YORK--(BUSINESS WIRE)--BlackRock (NYSE: BLK) announced today that iShares® iBonds® Sep 2017 Term Muni Bond ETF (NYSE: IBMF) will, by design, cease trading at the close of U.S. market hours on September 1, 2017. Leading up to the final distribution date, the individual bonds in the ETF will mature and the fund will transition 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 September 8, 2017, subject to their brokerage processes.
The iShares iBonds Sep 2017 Term Muni Bond ETF will be the sixth iShares Muni ETF to have its underlying holdings mature. 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 series with end dates ranging from 2017 to 2023.
iShares iBonds Term Muni Bond ETFs are designed to offer investors exposure to investment grade municipal bonds with the benefits of both ETFs and bonds. Each fund contains a diversified set of securities, seeks to track an S&P AMT-Free Municipal Series 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 all proceeds out to shareholders.
BlackRock is a global leader in investment management, risk management and advisory services for institutional and retail clients. At March 31, 2017, BlackRock’s AUM was $5.4 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 March 31, 2017, 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 $1.4 trillion in assets under management as of March 31, 2017, 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 firm1.
1 Based on $5.4 trillion in AUM as of 3/31/17
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.
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 iShares® iBonds® Muni ETFs (“Funds”) will terminate in September or December of the year in the 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. In the final months of the Fund’s operation, as the bonds it holds mature, its portfolio will transition to cash and cash-like instruments. 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 do not seek to return any predetermined amount.
During the final months prior to the Fund’s planned termination date, its yield will generally tend to move toward prevailing tax-exempt money market rates, and may be lower than the yields of the bonds previously held by the Fund and lower than prevailing yields for bonds in the market. 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 municipal 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, issued, sold or promoted by S&P Dow Jones Indices LLC, nor does this company make any representation regarding the advisability of investing in the Funds. BlackRock is not affiliated with S&P Dow Jones Indices LLC.
©2017 BlackRock. iSHARES, iBONDS and BLACKROCK are registered trademarks of BlackRock. All other marks are the property of their respective owners.