ETP LANDSCAPE MONTHLY SNAPSHOT | SEPTEMBER 30, 2013

Transcription

ETP LANDSCAPE MONTHLY SNAPSHOT | SEPTEMBER 30, 2013
ETP LANDSCAPE
MONTHLY SNAPSHOT | SEPTEMBER 30, 2013
The opinions expressed are as of September 30th, 2013
and may change as subsequent conditions vary.
FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION
What’s Inside
BlackRock ETP Research
Dodd Kittsley
Head of BlackRock ETP
Research
Global Overview
3
Year-To-Date Overview
5
Beyond Raw Flows: Capturing Investor Sentiment
6
Reference Schedules
Flows by Listing Region
7
Raj Seshadri
Head of BlackRock ETP Insights
ETP and Mutual Fund Monthly Flows
8
Largest Year-To-Date Fund Inflows and Outflows
9
For inquiries, contact
ETPresearch@BlackRock.com
ETP Flows by Exposure
10
ETP EQUITY FLOWS SWELL AS FED DELAYS TAPER1
 The Federal Reserve’s surprise September no-taper announcement removed
some risk of near-term volatility and took some pressure off rate-sensitive
assets. As a result, stocks rallied for much of the month and investors moved
heavily back into Developed Markets Equity funds. Investors also began to
warm up to Emerging Markets Equities.
 Global ETP flows reached $35.0bn during the month – following record
outflows in August – as investors again turned to the industry to execute their
market views.
 Equity funds captured the majority of September flows with $28.7bn and year-
to-date flows are now 46% higher than at the same point in 2012.
• Developed Markets Equity flows were $23.4bn, about half in funds with US
Equity exposure. Europe posted its fifth consecutive month of inflows –
although headwinds to improving economic growth remain – and Japan
ETPs continued to gather assets aided by Bank of Japan purchases.
 The Fed’s surprise decision not to taper also removed pressure from
Emerging Markets Equity ETPs, leading to inflows of $5.3bn for the month –
the first material inflow since January.
 Fixed Income ETP inflows totalled $6.6bn in September and year-to-date flows
have nearly returned to their May peak, although they remain at the lowest
year-to-date level since the credit crisis began in 2008.
• Some bright spots within Fixed Income included High Yield and Emerging
Markets Bond flows, which picked up with the Fed announcement stalling
the recent rise in interest rates and flows could continue while rates remain
range bound.
About the ETP Landscape: Monthly Snapshot Report
This report provides a summary of global ETP assets under management and asset flows for the most recent month-end period.
Subscribe
To receive the ETP Landscape series of reports, please subscribe via our website at:
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FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION
[2]
Global Overview
GLOBAL EQUITY CUMULATIVE ETP FLOWS1
2013 YTD Flows: $166.1bn
Highlights (US$):1,2
Global ETP flows in September surged to $35.0bn on
strength in Equities just one month after August’s record
outflows of ($16.0bn). Notably, strengthening Emerging
Markets Equity inflows provided a welcome boost during the
month and may be a sign the tide has turned for a category
that has been out of favor most of the year.
September played out similarly to July in a number of ways
for the Global ETP Industry. Both were characterized by
accommodative Fed signals following periods of concern that
tapering was imminent. As a result, both saw significant
jumps in Equity flows and a return to Fixed Income inflows
aided by a pause in the upward trajectory of interest rates.
DM Equity
The main difference versus July was the September pickup in
Emerging Markets exposure flows. Both Emerging Markets
Equity and Emerging Markets Fixed Income funds gained
traction during this month gathering $5.3bn and $0.9bn,
respectively.
EM Equity
GLOBAL FIXED INCOME CUMULATIVE ETP FLOWS1,2
2013 YTD Flows: $25.5bn
Global Equity inflows in September reached $28.7bn,
eclipsing $25bn for the fourth time in 2013. Asset
gathering picked up steam during the middle of the month,
spurred by the Fed’s decision, and then slowed in the final
week on uncertainty about future Fed direction and concern
over US debt ceiling negotiations.
Developed Markets Equities took in $23.4bn concentrated
in US exposures where inflows of $12.8bn were clustered in
Large Cap with $8.9bn and Sectors (primarily growth sectors
such as Industrials and Technology) with $3.7bn.
TAPER POLICY IMPACT ON GLOBAL ETP FLOWS1
2013 Recent Weekly Trends
May 22nd First
Taper
Comments
June 19th
Second Taper
Announcement
July 10th
Bernanke
Qualifies his
Position
Sept 18th Fed
Decision – No
Taper
Markets
anticipate
modest taper
20
10
0
DM Equity
EM Equity
FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION
Fixed Income
Sep 16-20
Sep 9-13
Jul 8-12
May 20-24
Jun 17-21
-10
May 6-11
Net F low s ( U S$bn)
Period of Uncertainty
Commodities & Others
[3]
Global Overview (cont’d)
Highlights (US$):1,2
SEPTEMBER RESULTS AT A GLANCE1
(US $billions)
Pan-European Equity ETP flows remained strong at $5.3bn,
beating the record set last month on news of reviving
economic growth in the region.
Japanese Equity funds maintained momentum with $2.8bn
on continued asset purchases by the Bank of Japan and have
now experienced 19 months of inflows in a row.
September
2013
August*
2013
December September
2012
2012
Monthly Flows
35.0
(16.0)
38.7
45.1
Assets
2,226
2,117
1,944
1,853
# of ETPs
4,937
4,918
4,759
4,721
While Developed Markets Equity inflows were large, their
composition indicated investors remain cautious. The
Emerging Markets inflows in September on the other hand
may embody a nascent move back into a riskier asset class.
*Aug-2013 restated with additional Asia Pacific data
The MSCI Emerging Markets Equity Index is still down 6.4%
this year but up 6.2% in September alone, the largest gain
since January 2012.3 It is still too early to call a trend, but the
case for Emerging Markets holds promise. Valuations are
favorable relative to Developed Markets Equities and a string
of recent data indicates growth prospects in China could be
improving and may reach the government’s target of 7.5% for
2013.
GLOBAL 13-MONTH ROLLING FLOWS1
2013 YTD Net Flows: $162.0bn
(US$bn)
Emerging Markets Equity flows this month were highly
focused in broad funds but Emerging Markets Country
funds also saw an uptick with China and India together
gathering $1.0bn. China flows were aided by local new
product launches.
Fixed Income flows returned to positive territory following
redemptions in August. Short-Maturity Fixed Income ETP
flows continued, totalling $3.1bn led by Floating Rate, Bank
Loans and Short-Term High Yield funds.
High Yield ETPs overall gathered $2.1bn and continue to
benefit from the pullback in interest rates in the wake of the
Fed’s decision to delay tapering. 10-Year Treasuries are now
yielding 2.61%, largely unchanged since early July. 5
Emerging Markets Fixed Income was also helped by the
pause in rates, adding $0.9bn largely from Europe-listed
ETPs. It was the first material flow for the category since
spring.
Money Market mutual funds have drawn in $60bn since
May when uncertainty over Fed tapering began in earnest. 4
FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION
[4]
Year-To-Date Overview
GLOBAL ETP YTD FLOWS BY EXPOSURE1
(US$bn)
Jan-Sep
2013
Jan-Sep
2012
Annual
2012
GLOBAL ETP CUMULATIVE FLOWS1
YTD Flows in 2013: $162.0bn
CUMULATIVE EQUITY ETP FLOWS1
CUMULATIVE FIXED INCOME ETP FLOWS1
YTD 2013 Equity Flows: $166.1bn
YTD 2013 Fixed Income Flows: $25.5bn
FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION
[5]
Beyond Raw Flows: Capturing Investor Sentiment
Overview6
For US-listed Equity ETPs — which make up 82% of global
Equity ETP YTD flows — the BlackRock Equity Risk
Sentiment Measure dropped in September from a 10 month
high but remained above its 1-year moving average.
Flows into broad-based funds with lower than average realized
return volatility – led by SPY (SPDR S&P 500) and IWM
(iShares Russell 2000) – gathered a greater portion of the
sizeable September flows than the more volatile funds, which
saw the greatest contribution from Emerging Markets funds.
In Fixed Income, risk sentiment has been indicating since
early in the year that investors are becoming more risk tolerant.
In September the risk sentiment level declined slightly, but it
remains just above the 1-year moving average.
Background and Methodology
Over longer horizons, our research shows that Risk Sentiment
exhibits greater persistence than raw flows alone, consistent
with the idea that the composition of flows is indicative of
investor sentiment and growing ETP adoption.
To better understand and capture shifts in investor sentiment,
we developed the BlackRock Risk Sentiment Measure6
using net inflows into all US-listed ETPs and the daily price
volatility since 2005. The measure is computed by asset class
(e.g., Equity, Fixed Income) and for different time periods
(weekly, monthly, etc.) to reflect shifts in risk appetite that are
harder to discern from raw flow data.
To compute risk sentiment within a particular asset class, we
sort ETPs into two groups, high and low risk, based on their
60-day realized return volatility. For example, currently the
high risk group in US equities includes Small Cap Equities and
ETPs that track Gold Miners while the low risk group includes
Large Cap Equities and Preferred Stock ETPs.
Within the Fixed Income, High-Yield Bond funds would fall into
the high risk group while Short-Term Treasury funds are in the
low risk group.
Risk sentiment is then defined as the total dollar
inflows/outflows for the riskier group of ETPs less those of the
safer group, scaled by the dispersion in flows across the
sample. Zero on the scale below represents the 1-year moving
average.
It’s important to note the BlackRock Risk Sentiment Measure
considers risk sentiment excluding cash.
EQUITY RISK FLOW SENTIMENT MEASURE
60
Risk Sentiment
40
More risk tolerant
20
0
(20)
(40)
More risk averse
(60)
J
F M A M
J
J
A
S O N D
J
F M A M
J
J
A
S
FIXED INCOME RISK FLOW SENTIMENT MEASURE
Risk Sentiment
60
40
More risk tolerant
20
0
(20)
More risk averse
(40)
(60)
J
F M A M
J
J
FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION
A
S O N D
J
F M A M
J
J
A
S
[6]
Flows By Listing Region
Highlights (US$):1
 Funds listed in the US account for 70.3% of global ETP
assets
 Asia Pacific has the highest asset growth rate so far this
year, followed by the US
 YTD 2013 flows into US-listed products represent 81% of the
 Europe has the highest number of products with 2,135
global total compared to 71% for full-year 2012
 ETP assets in the US have grown 16% YTD
SEPTEMBER NET FLOWS BY LISTING REGION1
ASSET GROWTH RATES AND # OF ETPs1
(# ETPs)
Bubble
size =
Assets
($bn)
80
2013 Growth in # ETPs
70
US
$1,566
60
50
$162
Asia Pacific
40
Europe
$395
30
20
10
0
Latin
America
$11
-10-10%
Canada
$58
-5%
-20
0%
5%
10%
15%
20%
2013 AUM Growth
LISTING REGION VIEW1
Net Flows
By Listing Region
Sep
2013
FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION
YTD
2013
Sep 2013
Assets
% Asset
Market
Share
Number of
Products
[7]
ETP and Mutual Fund
Monthly Flows
Highlights (US$):1,4
There are similar patterns in mutual fund and ETP flows
this year, particularly in Developed Markets (DM) Equities
and Emerging Markets (EM) Equities.
 DM Equity mutual fund flows have shifted from outflows in
2012 to inflows in 2013 with $107.8bn YTD. DM Equity
ETPs attracted larger YTD inflows of $173.0bn.
 Emerging Markets Equity flows started strong in 2013 for
both mutual funds and ETPs, then shifted course. ETP flows
rebounded in September, but remain in negative territory
YTD with ($6.9bn) vs. a modest net positive for mutual funds
of $0.9bn.
 Fixed Income flows had been steady for mutual funds and
ETPs in the first 5 months in 2013. ETPs have since seen
some volatility, but remain positive YTD at $25.5bn. Mutual
fund outflows have continued since June when concerns
about Fed tapering arose and are now negative YTD at
($2.9bn).
 Money Market mutual fund outflows totalled ($79.8bn) YTD.
After reaching a low point of more than ($150bn) of outflows
in June, investors have parked more than $75bn in these
funds over the last three months. Money Market ETPs are
not shown as a comparable because these funds have
minimal assets which are included in the Fixed Income asset
class.
DEVELOPED MARKETS EQUITY FLOWS1,4
EMERGING MARKETS EQUITY FLOWS1,4
200
60
173.0
150
116
55
50
107.8
100
40
50
30
0
(50)
20
(100)
10
(150)
0
(200)
(206)
(250)
J
F
M
A
M
J
J
A
S
O
N
14
0.9
(6.9)
(10)
(20)
D
J
F
M
A
M
J
J
A
S
O
N
D
MONEY MARKET MUTUAL FUND FLOWS1,4
FIXED INCOME FLOWS1,4
50
500
450
400
350
300
250
200
150
100
50
0
(50)
5
435
0
(50)
(79.8)
(100)
70
(150)
25.5
(2.9)
J
F
M
ETP Flows 2013
A
M
J
J
A
S
O
MF Flows 2013
FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION
(200)
N
D
J
F
ETP Flows 2012
M
A
M
J
J
A
S
O
N
D
MF Flows 2012
[8]
Largest Year-To-Date Fund
Inflows and Outflows
ETPs as of September (US$mn)1
ETPs as of September (US$mn)1
FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION
Bloomberg Ticker
2013 YTD
Inflows
Sep-13
Assets
Bloomberg Ticker
2013 YTD
Outflows
Sep-13
Assets
[9]
ETP Flows by Exposure:
Developed Equity
Exposure (US$mn)
1
Large Cap
Mid Cap
Small Cap
Micro Cap
US Size and Style
Total Market
Extended Market
Preferred Stock
US Size and Style Total
Basic Materials
Consumer Cyclicals
Consumer Non-cyclicals
Energy
Financials
Health Care
US Sector
Industrials
Real Estate
Technology
Telecommunications
Utilities
Theme
US Sector Total
US Strategy
US Total
Canada Equity
North America Regional Equity
North America Total
Large Cap
Mid Cap
Pan European
Small Cap
Size and Style
Total Market
Pan European
Size and Style Total
Pan European Sector
Pan European Strategy
Pan European Total
Germany
U.K.
Country
Switzerland
France
Others
Europe Single Country
Total
Europe Total
Asia-Pacific
Regional
Country
Asia Pacific Total
Broad-Based Global /Global ex-US
Developed Equity Total
FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION
September
2013
Net
Flows
2013 YTD
Net
Flows
% of
YTD
Flows
Assets
8,897
(2,363)
2,709
(291)
67
(542)
8,476
596
677
(214)
668
(425)
586
1,225
(192)
799
(37)
(94)
84
3,673
671
12,820
567
21
13,409
1,085
43
283
3,623
29,797
6,653
17,083
271
8,121
809
(831)
61,904
699
2,371
(680)
4,157
6,232
4,155
3,185
1,995
5,301
(103)
(141)
382
27,553
11,461
100,918
(561)
776
101,133
2,973
212
622
8,103
18.4
4.1
10.5
0.2
5.0
0.5
(0.5)
38.2
0.4
1.5
(0.4)
2.6
3.8
2.6
2.0
1.2
3.3
(0.1)
(0.1)
0.2
17.0
7.1
62.3
(0.3)
0.5
62.4
1.8
0.1
0.4
5.0
416,601
72,238
83,618
1,015
57,887
3,429
13,395
648,183
6,216
14,588
8,251
31,160
28,499
21,864
11,132
28,568
22,051
977
8,157
1,166
182,629
64,155
894,966
32,479
7,522
934,967
36,703
1,010
2,191
36,987
18.7
3.2
3.8
0.0
2.6
0.2
0.6
29.1
0.3
0.7
0.4
1.4
1.3
1.0
0.5
1.3
1.0
0.0
0.4
0.1
8.2
2.9
40.2
1.5
0.3
42.0
1.6
0.0
0.1
1.7
231
49
69
4
62
2
5
422
14
18
12
43
37
28
17
23
27
5
12
8
244
57
723
85
20
828
79
9
12
68
5,035
11,890
7.3
76,837
3.5
166
293
(70)
5,258
(1,935)
277
297
12,484
(2,049)
0.2
0.2
7.7
(1.3)
12,811
2,914
92,617
40,812
0.6
0.1
4.2
1.8
150
21
339
63
% of
Assets
# ETPs
642
3,055
1.9
19,094
0.9
50
(49)
(118)
165
(831)
0.1
(0.5)
9,956
5,414
0.4
0.2
23
19
177
1,298
0.8
9,373
0.4
66
(1,283)
1,636
1.0
84,650
3.8
221
3,975
309
2,558
14,121
544
30,503
8.7
0.3
18.8
177,266
16,173
132,903
8.0
0.7
6.0
560
59
231
2,867
31,047
19.2
149,076
6.7
290
3,163
23,413
26,691
172,992
16.5
106.8
178,989
1,440,299
8.0
64.7
447
2,125
[ 10 ]
ETP Flows by Exposure: EM
Equity, Fixed Income, &
Commodities
Exposure (US$mn)
Broad EM
1
Broad Emerging Markets
Broad Frontier Markets
Broad EM Total
Regional EM
Brazil
China
India
Russia
EM Single Country
South Korea
Mexico
Others
EM Single Country Total
Emerging Markets Equity Total
Equity Total
Broad/Aggregate
Govt/Corp
Emerging Markets
Municipal
Government - Sovereign
Government - US Treasury
Government Total
Fixed Income
Inflation
High Yield Corporate
Investment Grade Corporate
Money Market
Mortgage
Others
Fixed Income Total
Broad Market
Agriculture
Energy
Industrial Metals
Commodities
Precious Metals - Gold
Precious Metals - Silver
Precious Metals - Others
Precious Metals - Total
Commodities Total
Alternatives
Volatility
Others
Alternatives Total
Asset Allocation
Currency
Israel ETP
Global ETP Total
FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION
September
2013
Net
Flows
2013 YTD
Net
Flows
% of
YTD
Flows
Assets
% of
Assets
# ETPs
5,203
23
5,227
16
21
821
210
(204)
(146)
(202)
(461)
38
5,281
28,694
(346)
968
941
(304)
287
3,290
3,577
(626)
2,052
(3,176)
315
(2,861)
(1,847)
(3,631)
(2,211)
157
(589)
2,709
1,544
(199)
(2,221)
(6,930)
166,063
5
10,913
1,117
(496)
4,149
5,981
10,129
(5,222)
2,725
(2.0)
0.2
(1.8)
(1.1)
(2.2)
(1.4)
0.1
(0.4)
1.7
1.0
(0.1)
(1.4)
(4.3)
102.5
0.0
6.7
0.7
(0.3)
2.6
3.7
6.3
(3.2)
1.7
126,540
549
127,089
7,882
9,099
54,360
5,165
3,657
18,877
10,789
17,414
119,360
254,331
1,694,630
41,892
32,192
21,958
11,711
38,424
39,114
77,537
26,888
40,468
5.7
0.0
5.7
0.4
0.4
2.4
0.2
0.2
0.8
0.5
0.8
5.4
11.4
76.1
1.9
1.4
1.0
0.5
1.7
1.8
3.5
1.2
1.8
115
5
120
81
46
184
53
18
110
18
150
579
780
2,905
34
23
69
35
259
77
336
37
47
(41)
1,796
1.1
78,806
3.5
131
(193)
(150)
730
6,609
539
76
(93)
17
(1,169)
23
(24)
(1,170)
(630)
222
29
251
31
43
-
(1,138)
(775)
6,492
25,546
266
160
(1,159)
(23)
(32,923)
1,152
(14)
(31,786)
(32,542)
1,740
(53)
1,687
1,369
(89)
-
(0.7)
(0.5)
4.0
15.8
0.2
0.1
(0.7)
(0.0)
(20.3)
0.7
(0.0)
(19.6)
(20.1)
1.1
(0.0)
1.0
0.8
(0.1)
-
5,170
7,597
11,703
355,922
18,146
5,319
8,102
2,053
82,496
12,971
4,753
100,220
133,840
3,243
2,697
5,941
4,284
4,803
26,789
0.2
0.3
0.5
16.0
0.8
0.2
0.4
0.1
3.7
0.6
0.2
4.5
6.0
0.1
0.1
0.3
0.2
0.2
1.2
20
7
32
771
115
200
212
122
117
69
84
270
919
47
76
123
75
144
-
34,998
162,034
100.0
2,226,208
100.0
4,937
[ 11 ]
Endnotes
The ETP (or exchange traded product) category encompasses any portfolio exposure security that trades intra-day on an exchange. The data for this report
are captured from a number of sources by BlackRock including provider websites, fund prospectuses, provider press releases, provider surveys, Bloomberg,
the National Stock Exchange, Strategic Insight Simfund, Wind, and the Bank of Israel. All amounts are reported in US dollars. Flows are derived using daily
net asset values and shares outstanding using the most recent data we can capture at month-end. For products with cross-listings, we attribute net flows and
assets to the primary listings. For Middle East and Africa, net flows data is not available. Assets are derived using shares outstanding and prices at the end of
each month (or the closest date available). Where price is not available, we use an approximation. For ETPs listed in Israel, product level detail is not
available. Product level information is aggregated by provider, asset class, exposure, region listed and replication method to produce the various analyses in
the report.
1.
Data is as of September 27, 2013 for Europe and September 30, 2013 for the US, Canada, Latin America, Israel, and some Asia ETPs. Some Asia ETP
data is as of August 30, 2013. Global ETP flows and assets are sourced using shares outstanding and net asset values from Bloomberg for the US,
Canada, Europe, Latin America and some ETPs in Asia. Middle East ETP assets are sourced from the Bank of Israel. ETP flows and assets in China
are sourced from Wind. Inflows for years prior to 2010 are sourced from Strategic Insights Simfund. Asset classifications are assigned by the
BlackRock based on product definitions from provider websites and product prospectuses. Other static product information is obtained from provider
websites, product prospectuses, provider press releases, and provider surveys. Market returns are sourced from Bloomberg.
2.
We classify maturity buckets of a Fixed Income ETP if the fund invests at least 70% of its assets in the corresponding maturity/exposure range: Short
maturity includes: underlying security maturities < 3 years and floating rate where the fund holds floating rate securities and/or bank loans. Intermediate
includes: 3 years < underlying security maturities < 10 years. The “other” category includes Long-Term: underlying security maturities > 10 years;
Broad Maturities: The fund invests in more than two maturity buckets without emphasizing one; Selected Maturities: The fund holds securities with
multiple selected range of maturity buckets, i.e. barbell strategy which focuses on the specific short-term and long-term buckets with even weights; and
Fixed Maturity: The fund itself has a target maturity date and arranged holdings correspondingly.
3.
Source: Bloomberg MSCI EM Index (MXEF Index), as of September 2013
4.
Mutual fund data is sourced from EPFR (excluding Money Market funds and ETFs). Full year 2012 and January-August 2013 data is sourced from
EPFR monthly data. September 2013 data is sourced from EPFR weekly data for the four weeks ended Sep 25, 2013. Money Market mutual fund flows
is sourced from EPFR weekly data for the four weeks ended Sep 25, 2013.
5.
Source: Bloomberg US Generic Govt 10 Year Yield Index (USGG10YR Index), as of September 2013
6.
Source: BlackRock, Bloomberg, Reuters
Index returns are for illustrative purposes only and do not represent actual Fund performance. Index performance returns do not reflect any
management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not
guarantee future results.
ABOUT BLACKROCK
BlackRock is a leader in investment management, risk management and advisory services for institutional and retail clients
worldwide. At June 30, 2013, BlackRock’s AUM was $3.857 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 March 31,
2013, the firm has approximately 10,700 employees in 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.
FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION
[ 12 ]
Disclaimer
REGULATORY INFORMATION
BlackRock Advisors (UK) Limited is authorised and regulated by the Financial Conduct Authority ('FCA'), having its registered office at 12 Throgmorton
Avenue, London, EC2N 2DL, England, Tel +44 (0)20 7743 3000.
This document has been provided by BlackRock in a private and confidential manner to professional and or institutional investors (as such term is defined
according to applicable regulations in the relevant jurisdiction) only upon express request.
This document is solely for informational and educational purposes only and represents an assessment of the market environment at a specific time and is
not intended to be relied upon by the reader as research, a forecast of future events or a guarantee of future results.
This publication does not provide financial, investment or tax advice or information relating to the securities of any particular fund or other issuer. The
information and opinions included in this publication are based on publicly available information, are subject to change and should not be relied upon for any
purpose other than general information and education. This publication has been prepared without regard to the individual financial circumstances and
objectives of those who receive it and the types of securities discussed in this publication may not be suitable for all investors.
The information included in this document has been taken from trade and other sources considered to be reliable. This document is published in good faith
but no representation or warranty, express or implied, is made by BlackRock or by any person as to its accuracy or completeness and it should not be relied
on as such. BlackRock or any of its directors, officers, employees or agents shall have no liability for any loss or damage arising out of the use or reliance on
the material provided including without limitation, any loss of profit or any other damage, direct or consequential. Any opinions expressed in this document
reflect our analysis at this date and are subject to change.
This is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any strategy in any jurisdiction.
This document has not been prepared, reviewed or distributed by any broker-dealer affiliate of BlackRock and should not be deemed a product of any such
affiliate.
BlackRock has not performed any due diligence on products which are not managed by BlackRock and accordingly does not make any remark on their
suitability for investment purposes. Past performance is not a guide to future performance . Income is not fixed and may fluctuate. Exposure to foreign
currencies can be affected by exchange rate movements.
This document or any portion hereof may not be reprinted, sold or redistributed without authorisation from BlackRock Advisors (UK) or its affiliates (together,
‘BlackRock’).
This document is not, and under no circumstances is to be construed as an advertisement or any other step in the furtherance of a public offering of shares in
the United States. This document is not aimed at persons who are resident in the United States or any province or territory thereof, where the
companies/securities are not authorized or registered for distribution and where no prospectus has been filed with any securities commission or regulatory
authority. The companies/securities may not be acquired or owned by, or acquired with the assets of, an ERISA Plan.
FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION
[ 13 ]
Disclaimer (continued)
NOTICE TO RESIDENTS IN AUSTRALIA:
Issued in Australia by BlackRock Investment Management (Australia) Limited ABN 13 006 165 975, AFSL 230523 ("BIMAL") to institutional investors
only. iShares® exchange traded funds (“ETFs”) that are made available in Australia are issued by BIMAL, iShares, Inc. ARBN 125 632 279 and iShares
Trust ARBN 125 632 411. BlackRock Asset Management Australia Limited ("BAMAL") ABN 33 001 804 566, AFSL 225 398 is the local agent and
intermediary for iShares ETFs that are issued by iShares, Inc. and iShares Trust. BIMAL and BAMAL are wholly-owned subsidiaries of BlackRock, Inc.
(collectively “BlackRock”). A Product Disclosure Statement (“PDS”) or prospectus for each iShares ETF that is offered in Australia is available at
iShares.com.au.
You should read the PDS or prospectus and consider whether an iShares ETF is appropriate for you before deciding to invest.
iShares securities trade on ASX at market price (not, net asset value ("NAV")). iShares securities may only be redeemed directly by persons called
“Authorised Participants”. This information is general in nature, and has been prepared without taking into account any individual's objectives, financial
situation, or needs. You should seek independent professional legal, financial, taxation, and/or other professional advice before making an investment
decision regarding the iShares funds.
FOR INVESTORS IN CANADA:
The information and opinions herein are provided for informational purposes only, are subject to change and should not be relied upon as the basis for
investment decisions. Past performance is not necessarily indicative of future performance. This document is not and should not be construed as a
solicitation or offering of units of any funds or other security in any jurisdiction. No part of this publication may be reproduced in any manner without prior
written permission of BlackRock Asset Management Canada Limited and/or its affiliates.
FOR INVESTORS IN HONG KONG:
Some of the funds mentioned herein have not been registered with the Securities and Futures Commission for offering or distribution in Hong Kong.
Accordingly, this material may not be circulated or distributed, nor may the funds be offered or sold whether directly or indirectly, to any person in Hong
Kong other than to a Professional Investor as defined in the Securities and Futures Ordinance ("SFO") (Cap. 571 of the laws of Hong Kong) and any
regulations there under.
NOTICE TO RESIDENTS IN INDIA:
This document is intended for information purposes only and does not constitute investment advice or an offer to sell or solicitation of an offer to buy the
funds described herein. This document has been provided by BlackRock in a private and confidential manner to financial intermediaries only upon their
request. The funds mentioned herein have not been registered with any authorities in India.
NOTICE TO RESIDENTS IN JAPAN:
This document is solely for educational purposes and does not constitute advertisement of financial services targeted at investors in Japan. This
document is intended for information purposes only and does not constitute investment advice or an offer to sell or solicitation of an offer to buy the funds
described herein. This document has been provided by BlackRock in a private and confidential manner to Qualified Institutional Investors (as defined in
the Financial Instruments and Exchange Law of Japan) only upon their request.
FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION
[ 14 ]
Disclaimer (continued)
FOR INSTITUTIONAL AND PROFESSIONAL INVESTORS ONLY IN LATIN AMERICA:
In Latin America, for Institutional and Professional Investors only. This material is solely for educational purposes only and does not constitute an offer or a
solicitation to sell or a solicitation of an offer to buy any shares of any securities (nor shall any such securities be offered or sold to any person) in any
jurisdiction within Latin America in which an offer, solicitation, purchase or sale would be unlawful under the securities law of that jurisdiction. It is possible that
all or some of the funds mentioned or inferred to in this material have not been registered with the securities regulator of Brazil, Chile, Colombia, Mexico and
Peru or any other securities regulator in any Latin American country, and thus, might not be publicly offered, purchased or sold within any such country. The
securities regulators of such countries have not confirmed the accuracy of any information contained herein. No information discussed herein can be provided
to the general public in Latin America.
NOTICE TO RESIDENTS IN SINGAPORE:
This document is provided by BlackRock (Singapore) Limited (company registration number: 200010143N) for use with institutional investors only. This
document has not been registered as a prospectus with the Monetary Authority of Singapore (MAS). Some of the funds mentioned herein have not been
registered with the MAS for distribution in Singapore. Accordingly, this and any other document or material in connection with the offer or sale of the Shares
may not be circulated or distributed, nor may the Shares be offered or sold, whether directly or indirectly, to any person in Singapore other than (i) to an
institutional investor pursuant to Section 304 of the Securities and Futures Act (SFA) or (ii) otherwise pursuant to, and in accordance with the conditions of,
any other applicable provision of the SFA. First sales of the Shares acquired pursuant to Section 304 of the SFA are subject to the requirements under Section
304A of the SFA.
NOTICE TO RESIDENTS IN THAILAND:
This document is intended for information purposes only and does not constitute investment advice or an offer to sell or solicitation of an offer to buy the funds
described herein. This document has been provided by BlackRock in a private and confidential manner to institutional investors only upon their request. The
funds mentioned herein have not been registered with any authorities in Thailand, and accordingly, this document may not be circulated or distributed, nor
may the shares of these funds be offered or sold whether directly or indirectly, to any person in Thailand.
NOTICE TO RESIDENTS IN VIETNAM:
This document is intended for information purposes only and does not constitute investment advice or an offer to sell or solicitation of an offer to buy the funds
described herein. This document has been provided by BlackRock in a private and confidential manner to institutional investors only upon their request. The
funds mentioned herein have not been registered with any authorities in Vietnam, and accordingly, this document may not be circulated or distributed, nor may
the shares of these funds be offered or sold whether directly or indirectly, to any person in Vietnam.
© 2013 BlackRock Advisors (UK) Limited. All rights reserved. Registered Company No. 00796793. All rights reserved. Calls may be monitored or recorded.
BLACKROCK, BLACKROCK SOLUTIONS, and iSHARES, are registered and unregistered trademarks of BlackRock, Inc. or its
subsidiaries in the United States and elsewhere. All other marks are those of their respective owners.
iS-10793-1013