ETP LANDSCAPE MONTHLY SNAPSHOT | MAY 31, 2013
Transcription
ETP LANDSCAPE MONTHLY SNAPSHOT | MAY 31, 2013
ETP LANDSCAPE MONTHLY SNAPSHOT | MAY 31, 2013 The opinions expressed are as of May 31st, 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 Raj Seshadri Head of BlackRock ETP Insights For inquiries, contact ETPresearch@BlackRock.com Global ETP Monthly Overview 3 Global ETP Year-To-Date Overview 4 Global ETP Flows Year-To-Date View 5 Japan Equity Exposure ETPs 6 Gold ETPs 7 US Sector ETPs 8 ETPs Flows By Listing Region 9 ETPs and Mutual Fund Monthly Flows 10 Largest Asset Gathering ETPs Launched in 2013 11 Largest Year-To-Date Fund Inflows and Outflows 12 ETP Flows by Exposure: Developed Equities 13 EM Equities, Fixed Income, & Commodities 14 Endnotes 15 HIGHLIGHTS1 Investors exhibited an increased appetite for economically-sensitive assets compared to last month as the majority of this month’s flows were in Equity funds May ETP flows reached $26.5 billion, up substantially over April results of $9.2 billion Year-to-date ETP flows grew 24% over 2012 levels and continued at a record-setting pace through May, breaking through the $100 billion mark Flows into Japanese Equities continued despite some local equity market volatility, with flows accelerating to a new record high Gold outflows continued for a fifth straight month In the US Sector category, there was a clear shift in investor preference from defensive categories in April to economically sensitive categories in May About the ETP Landscape: Monthly Snapshot Report The “ETP Landscape: Monthly Snapshot” provides a summary of ETP assets under management and asset flows at a global level for the most recent month-end period. Subscribe To receive the ETP Landscape series of reports at no cost, please subscribe via our website at: www.blackrockinternational.com/etflsubscribe FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION [2] Global ETP Monthly Overview Highlights (US$):1 Global ETP flows during May reached $26.5bn, the second strongest month this year. Investors exhibited an increased appetite for economically-sensitive assets compared to last month as the majority of flows were in Equity funds — $26.9bn or more than 100%. However, Fixed Income funds still posted a third solid month in a row, gathering $5.6bn. The key themes during the month were the acceleration of flows into Japanese Equity ETPs, continued redemptions from Gold funds, shifting investor preference within Sector Equities, and more robust flows into Intermediate-Maturity Fixed Income funds. MAY RESULTS AT A GLANCE1 (US $billions) May 2013 April 2013* December 2012 May 2012 Monthly Flows 26.5 9.2 38.7 18.8 Assets 2,126 2,114 1,944 1,619 # of ETPs 4,871 4,855 4,759 4,697 *Apr-2013 restated with additional Asia Pacific data GLOBAL 13-MONTH ROLLING NET FLOWS1 2013 YTD Net Flows: $105.4bn Funds with Japanese Equity exposure accumulated (US$bn) $10.2bn. This was the largest single monthly inflow on record. Flows were not materially impacted by the late-May turbulence in the Japanese Equity markets. Investors further trimmed Gold exposure in the face of more moderate inflation expectations. Gold ETP outflows continued in May to the tune of ($5.7bn), half the level seen in April, but still the 5th straight month with outflows of more than ($1bn). US Listed U.S. Sector Equity flows shifted toward riskier categories. Cyclical and Sensitive sector funds gathered $6.6bn while redemptions in defensive sector funds totaled ($1.4bn). This pattern was apparent in January and February but had reversed in March and April. Short-Maturity Fixed Income funds brought in a healthy $2.8bn in May, but for the first time this year were eclipsed by Intermediate-Maturity funds (see below) which registered flows of $4.2bn. COMPOSITION (%) OF FIXED INCOME FLOWS BY MATURITY1,2 (US$bn) May 2013 5.6 YTD 2013 26.4 -40%-20% 0% 20% 40% 60% 80%100%120% Short FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION Intermediate Other [3] Global ETP Year-To-Date Overview Year-To-Date Highlights (US$):1 Year-to-date global ETP inflows passed the $100 billion mark and continued at a record-setting pace YTD flows of $105.4bn are up 24% over the previous YTD record high of $85.1bn set in May 2012. Equity funds led with more than $100 billion of YTD flows which are up more than 100% over last year’s YTD flows of $43.5bn. US and Japanese Equity exposures account for the bulk of the year-over-year growth. Both equity markets have been bolstered by accommodative Central Bank monetary policies. Japanese Equities appeal to investors outside of Asia who account for 72% of the YTD flows into the category. Funds domiciled in Asia attracted $6.5bn of the total flows while offshore funds domiciled in the US and Europe drew in $16.5bn, or 72%. In contrast, these offshore funds account for only 35% Japanese Equity ETP assets. Short Maturity funds (Floating Rate, Ultra-Short-Term and Short-Term) have been the engine for Fixed Income growth this year, accumulating $17.8bn. Last May, the duration picture was completely different with YTD inflows of $2.6bn for Short Maturity funds.2 Yield remains the most noteworthy Equity theme this year. May saw record-high monthly flows of $3.7bn into Dividend Income funds, bringing the YTD total to a recordbreaking level of $14.5bn. When added to the $6.9bn from Real Estate and $3.3bn from Preferred Stock, yield-oriented Equity funds have accumulated $24.7bn YTD. US Listed US Sector Equity ETPs have brought in $19.0bn YTD. Investors have put the most money to work in Real Estate with $3.8bn and Financials with $3.9bn. CUMULATIVE EQUITY ETP FLOWS1 CUMULATIVE FIXED INCOME ETP FLOWS1 YTD 2013 Equity Flows: $100.6bn YTD 2013 Fixed Income Flows: $26.4bn FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION [4] Global ETP Flows Year-To-Date View JAN-MAY 2013 VS. JAN-MAY 2012 GLOBAL ETP FLOWS1 Jan-May 2013 Equity Flows: $100.6bn GLOBAL ETP YEAR-TO-DATE NET FLOWS BY EXPOSURE1 (US$bn) Jan-May 2013 Jan-May 2012 Annual 2012 GLOBAL ETP CUMULATIVE NET FLOWS1 FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION [5] Japan Equity Exposure ETPs Highlights (US$):1 CUMULATIVE JAPAN EQUITY ETP FLOWS1 Japan Equity ETPs gathered a monthly record $10.2bn during May. Year-to-date flows have also reached record-setting territory at $23.1bn, or 22.9% of all Equity ETP flows. By comparison, flows through Jan-May 2012 totalled just $4.6bn. The pace of flows so far in 2013 is already more than double the levels seen annually in both 2011 and 2012. Only $0.8bn of the flows in May came from Bank of Japan (BOJ) ETP purchases, which began at the end of 2010. Year-to-date 2013 BOJ buying now totals $2.5bn. Japan Equity ETP flows moderated when equity markets turned turbulent in late May, but overall flows were not materially impacted by small outflows of ($0.3bn) on May 31st. The TOPIX index is up 32% YTD, after pulling back 10% in late May. JAPAN EQUITY ETP DAILY FLOWS IN MAY 20131 1,300 0.9 0.6 (3.3%) decline 1,200 (3.8%) decline 0.3 1,100 Daily flows (US$bn) TOPIX Index Value (6.9%) decline 0.0 1,000 (0.3) 5/15 5/16 5/17 5/20 5/21 FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION 5/22 5/23 5/24 5/27 5/28 5/29 5/30 5/31 [6] Gold ETPs Highlights (US$):1 Gold ETPs had outflows of ($5.7bn) in May 2013, bringing the year-to-date total to ($23.9bn). Total assets in gold ETPs globally shrank to $96.2bn, a decrease of (31.9%) from the $141.2bn at year-end 2012 What’s causing the reversal? • There’s the recent weakness in gold spot prices, which have fallen17% year-to-date and about 27% from a record high of $1900 a troy ounce hit in September 2011. • Another factor is a growing belief that monetary easing from the Fed may end in the near term which could cause interest rates to rise. But while some investors may be reacting to the current environment, it’s clear that a significant number are standing their ground. While gold has historically been seen as a potential cash alternative in periods of economic uncertainty and a hedge against inflation concerns or a weakening dollar, many invest in gold as a long-term holding due to its diversifying properties. Gold has historically shown little to no correlation with other major asset classes, including commodities, and gold is a beneficiary of negative real interest rates which have persisted for some time in many developed economies. • Add these factors to a stronger US dollar, the continued demand for equities, and a general shift away from traditional “safe haven” assets (such as Treasuries), and you can see why some tactical investors are pulling back on their gold exposure. CUMULATIVE GOLD ETP FLOWS1 GOLD ETP ASSETS1 160 140 Assets (US$bn) 120 100 80 60 40 20 FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION May-13 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 0 [7] US Sector ETPs US LISTED US SECTOR ETP MONTHLY FLOWS1 Highlights (US$):1 US Sector Equity ETPs accumulated $5.1bn in May and have now attracted $19.0bn YTD. This has already topped the full-year total from 2012 and is higher than 2010 and 2011 combined. US Sector assets stood at $103bn at the end of 2010 and are now up to $170.7bn, including an increase of $37.3bn so far in 2013. As investors become increasingly comfortable with risk and more confident in the economy, they should naturally gravitate away from the relative safety of Defensive sectors and toward the potential outperformance of the Cyclical and Sensitive categories. Investors returned to Cyclical and Sensitive sectors in May, contributing flows of $6.6bn after a pause in April. YTD asset gathering has reached $16.0bn ($9.8bn for Cyclical and $6.2bn for Sensitive). At the same time, Defensive sectors have fallen out of favor with May redemptions of ($1.4bn) after three strong months of inflows. YTD flows are still $2.7bn but it is possible that investors are beginning to rotate away from Defensive sectors given historically high valuations. Cyclical Defensive Basic Materials, Consumer Cyclicals, Financials, Real Estate Consumer Non-Cyclicals, Health Care, Utilities Sensitive Energy, Industrials, Technology, Telecommunications Theme Non-traditional GICS sectors FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION [8] ETP Flows By Listing Region Highlights (US$):1 Funds listed in the US account for 71% of global ETP assets. YTD 2013 flows into US-listed products represent 81% of the global total compared to 71% for full-year 2012. ETP assets in the US have grown 11% YTD, the highest rate Asia Pacific ETP assets have also grown at a fast pace at 9% YTD. Europe and Canada have seen slower growth rates so far in 2013. of any region, aided by market price movements with the S&P 500 crossing 1,600 for the first time in history. ASSET GROWTH RATES AND # OF ETPs1 MAY NET FLOWS BY LISTING REGION1 (# ETPs) 50 Asia Pacific 2013 Growth in # ETPs 40 Europe $378 $149 Bubble size = Assets ($bn) 30 US $1,502 20 10 0 -10 0% Canada Latin America $13 $58 2% 4% 6% 8% 10% 2013 AUM Growth 12% 14% LISTING REGION VIEW1 Net Flows By Listing Region May 2013 FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION YTD 2013 May 2013 Assets % Asset Market Share Number of Products [9] ETPs and Mutual Fund Monthly Flows Highlights (US$):1,3 Developed Equity mutual fund flows have shifted from outflows in 2012 to net inflows in 2013. Year-to-date, mutual funds have drawn in $69.9bn while Developed Equity ETPs attracted inflows of $104.1bn. Fixed Income flows have been steady for mutual funds in 2013. Year-to-date, mutual funds have gathered $148.8bn while Fixed Income ETPs drew in $26.4bn. Emerging Markets Equity flows were strong in January 2013 for both mutual funds and ETPs and have been declining over the last four months. Year-to-date, mutual funds have gathered $25.1bn while Emerging Markets Equity ETPs flows turned negative with ($3.5bn) for the year. DEVELOPED EQUITY MONTHLY FLOWS1,3 EMERGING EQUITY MONTHLY FLOWS1,3 20 30 15 20 10 10 5 0 0 (5) (10) Jan-13 Feb-13 Mar-13 Apr-13 May-13 (10) Jan-13 Feb-13 Mar-13 Apr-13 May-13 FIXED INCOME MONTHLY FLOWS1,3 60 50 40 ETP Flows 30 Mutual Fund Flows 20 10 0 (10) Jan-13 Feb-13 Mar-13 Apr-13 FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION May-13 [ 10 ] Largest Asset Gathering ETPs Launched in 2013 Highlights (US$):1 183 new ETPs and 18 individual share class listings debuted around the globe so far this year. 73 products and 8 individual share class listing were delisted this year with combined assets of less than $730mn. TOP 15 NEWLY LAUNCHED ETPs Product Name (US$mn)1 Bloomberg Ticker FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION Exposure Listing Region Launch Date May-13 Assets [ 11 ] Largest Year-To-Date Fund Inflows and Outflows ETPs as of May (US$mn)1 Bloomberg Ticker 2013 YTD Inflows May-13 Assets ETPs as of May (US$mn)1 Bloomberg Ticker 2013 YTD Outflows May-13 Assets FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION [ 12 ] ETP Flows by Exposure: Developed Equity Exposure (US$mn) May 2013 Net Flows 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 2013 YTD Net Flows % of YTD Flows Assets % of Assets # ETPs 7,966 1,063 (1,366) 57 470 (41) 95 8,244 7 1,199 (411) 704 2,272 (819) 650 520 1,492 (61) (188) (8) 5,358 1,698 15,301 (126) 183 15,358 204 (13) 67 425 15,807 2,713 6,499 129 7,500 572 2,061 35,280 (90) 2,283 674 2,470 4,224 1,813 857 4,108 2,951 49 229 291 19,860 8,172 63,312 (838) 627 63,101 (428) (20) 151 (16) 15.0 2.6 6.2 0.1 7.1 0.5 2.0 33.5 (0.1) 2.2 0.6 2.3 4.0 1.7 0.8 3.9 2.8 0.0 0.2 0.3 18.9 7.8 60.1 (0.8) 0.6 59.9 (0.4) (0.0) 0.1 (0.0) 389,570 65,152 66,555 773 54,322 2,907 17,321 596,602 5,252 14,047 9,573 28,797 26,047 17,893 8,206 32,815 18,976 1,082 8,644 1,232 172,562 59,461 828,625 32,127 7,152 867,905 31,145 707 1,561 26,630 18.3 3.1 3.1 0.0 2.6 0.1 0.8 28.1 0.2 0.7 0.5 1.4 1.2 0.8 0.4 1.5 0.9 0.1 0.4 0.1 8.1 2.8 39.0 1.5 0.3 40.8 1.5 0.0 0.1 1.3 222 50 64 4 60 2 5 407 14 18 12 41 37 28 17 22 31 5 11 9 245 53 705 83 19 807 76 8 13 68 680 (331) (0.3) 59,996 2.8 164 85 34 802 319 (306) 197 (423) (1,797) (0.3) 0.2 (0.4) (1.7) 11,620 2,689 74,352 38,332 0.5 0.1 3.5 1.8 158 19 342 62 68 259 0.2 15,239 0.7 50 (91) (467) 99 (730) 0.1 (0.7) 9,205 5,156 0.4 0.2 23 19 119 872 0.8 8,509 0.4 71 (51) (1,297) (1.2) 76,440 3.6 225 751 (458) 9,891 (1,720) 1,749 23,408 (1.6) 1.7 22.2 150,793 16,852 117,419 7.1 0.8 5.5 567 57 226 9,434 25,157 23.9 134,270 6.3 283 4,897 30,439 17,543 104,080 16.7 98.8 163,911 1,316,879 7.7 61.9 444 2,101 [ 13 ] ETP Flows by Exposure: EM Equity, Fixed Income, & Commodities Exposure (US$mn) Broad EM May 2013 Net Flows 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 2013 YTD Net Flows % of YTD Flows Assets % of Assets # ETPs (2,578) 4 (2,574) (97) (831) 2 73 501 (333) (410) 115 (883) (3,553) 26,886 273 1,024 531 283 645 2,229 2,874 (834) (974) (1,691) 133 (1,558) (789) (2,748) (2,348) 3 (70) 1,814 2,002 191 (1,158) (3,505) 100,575 2,525 6,475 2,850 1,024 2,447 3,814 6,261 (1,066) 1,211 (1.6) 0.1 (1.5) (0.7) (2.6) (2.2) 0.0 (0.1) 1.7 1.9 0.2 (1.1) (3.3) 95.5 2.4 6.1 2.7 1.0 2.3 3.6 5.9 (1.0) 1.1 131,309 466 131,775 8,608 10,673 56,424 5,759 3,760 16,783 11,979 17,429 122,807 263,191 1,580,070 43,189 25,782 22,293 13,891 40,283 36,855 77,138 31,940 39,774 6.2 0.0 6.2 0.4 0.5 2.7 0.3 0.2 0.8 0.6 0.8 5.8 12.4 74.3 2.0 1.2 1.0 0.7 1.9 1.7 3.6 1.5 1.9 109 5 114 81 47 171 53 19 113 18 141 562 757 2,858 31 19 65 35 256 76 332 37 40 2,084 4,146 3.9 82,263 3.9 120 (295) (254) 883 5,594 (333) 45 (48) 28 (5,727) (281) 28 (5,980) (6,288) (19) (5) (24) 308 (7) - (947) 21 3,927 26,427 (186) 196 (1,359) 175 (23,914) 507 207 (23,200) (24,374) 1,583 (1) 1,582 1,206 (58) - (0.9) 0.0 3.7 25.1 (0.2) 0.2 (1.3) 0.2 (22.7) 0.5 0.2 (22.0) (23.1) 1.5 (0.0) 1.5 1.1 (0.1) - 5,425 8,399 9,140 359,235 17,894 5,465 7,740 2,306 96,208 12,825 5,151 114,184 147,589 3,406 2,953 6,358 4,172 4,972 23,999 0.3 0.4 0.4 16.9 0.8 0.3 0.4 0.1 4.5 0.6 0.2 5.4 6.9 0.2 0.1 0.3 0.2 0.2 1.1 20 7 33 739 118 202 214 126 115 68 83 266 926 49 78 127 72 149 - 26,469 105,359 100.0 2,126,395 100.0 4,871 [ 14 ] Endnotes Exchange traded products (ETPs) are portfolio exposure securities that trade intra-day on an exchange 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 the BlackRock Investment Institute 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. Net 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 crosslistings, 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 May 30, 2013 for Europe and May 31, 2013 for the US, Canada, Latin America, Israel, and some Asia ETPs. Some Asia ETP data is as of April 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. 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 focus 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. Mutual fund data is sourced from EPFR (excluding Money Market funds and ETFs). Full year 2012 and January-April 2013 data is sourced from EPFR monthly data. May 2013 data is sourced from EPFR weekly data for the four weeks ended May 29, 2013 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 March 31, 2013, BlackRock’s AUM was $3.936 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 10,600 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 [ 15 ] 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. 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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-10003-0613