7 September 2001
iShares public limited company
announces plan to cross-list the shares
of iShares FTSE Euro 100
Following the successful launch of iFTSE ExUK (the 'Fund') on the London Stock
Exchange in December 2000 and the subsequent name change in July 2001 to
iShares FTSE Euro 100, the directors of iShares public limited company
('iShares' or 'the Company') have today announced the forthcoming listing of
the Fund on the Official Segment of the Stock Market of Euronext Amsterdam
iShares is authorised in Ireland by the Central Bank of Ireland as a UCITS for
the purposes of the UCITS Regulations. The Company has been established for an
unlimited period and is structured as an umbrella fund in that the share
capital of the Company may be divided into different classes of shares with
one or more classes representing a separate fund of the Company. Each fund may
have more than one share class.
Application has been made to list the shares of the Fund on Euronext (formerly
known as Amsterdam Exchanges N.V.). It is expected that trading in the shares
will commence on or about 24 September 2001 within the NextTrack Segment.
Investment Objectives and Policies
The investment objective of iShares FTSE Euro 100 is to provide investors with
a total return, taking into account both capital and income returns, which
reflects the return of the equity market in Europe apart from the UK.
In order to achieve this investment objective the investment policy of iShares
FTSE Euro 100 is to invest in a portfolio of European equity securities. The
Fund may from time to time also hold equity securities from other countries.
Additionally, the Fund may invest in convertibles, gilts, liquidity
instruments such as floating rate instruments and commercial paper, other
transferable securities and open-ended collective investment undertakings. The
Fund's investments will normally be listed or traded on Regulated Markets in
member states of the European Union, but may alternatively be listed or traded
on other Regulated Markets. The Fund may hold ancillary liquid assets subject
to certain limits.
The Benchmark Index for this Fund is currently the FTSE Euro 100 Index. The
FTSE Euro 100 Index is an index containing 100 leading equities in European
Monetary Union participant states. The index is weighted using the free float
adjusted capitalisation of the largest qualifying companies within the FTSE
Eurotop 300 Eurobloc Index.
The base currency of this Fund is Euros.
The prospects of the Fund are expected to reflect the performance of its
Benchmark Index, currently the FTSE Euro 100 Index.
Investment and Borrowing Restrictions and Regulations
The Company is a UCITS and accordingly the Fund is subject to the investment
and borrowing restrictions set out in the Regulations and the Notices of
Central Bank of Ireland. It is not currently intended to invest assets of the
Fund in emerging markets.
The Central Bank of Ireland is the principal supervisory authority of the
Company and the Fund.
Notification has been made to the Dutch Central Bank in order to offer the
Shares for sale to the public in the Netherlands. The Fund is an investment
institution (instellingen voor collectieve beleggingen in effecten) according
to Article 17 of the Netherlands Act on the Supervision of Investment
Institutions. The Fund is consequently, in respect of such notification,
subject to the Netherlands Act on the Supervision of Investment Institutions,
regulations enacted pursuant thereto and the supervision thereunder of the
Dutch Central Bank.
Application has been made for the Fund to be quoted on Euronext. Upon listing,
the Fund will be subject to the regulations of Euronext.
The Company intends to declare dividends on the Shares of the class of the
Fund which, over a financial year, will equal the total income of the Fund net
of any expenses. Dividends will normally be declared with a view to their
being paid in June and December of each year ('Semi-Annual Dividends').
Dividends will be declared in Euros. Where the shares are held in the CREST
system, the Company will normally convert Euro dividends to Sterling at the
cost and risk of the shareholder and make dividend payments in Sterling.
Shareholders in CREST who wish to receive dividends in Euros should inform
Barclays Global Investors Ireland Limited (the 'Manager').
The Company intends to pay Redemption Dividends on any Shares in any class of
the Fund which are the subject of valid redemption requests. The value of a
redemption dividend per share will normally be given by the fraction I/S
I = the total income attributable to the class of the shares to be
redeemed net of any expenses since the declaration of the last Semi-
Annual Dividend on that class; and
S = the number of shares in issue of that class as at the redemption
The Valuation Point for the Fund shall be the close of business on the markets
relevant to its investments or such other time on each Dealing Day as may be
determined by the Barclays Global Investors Limited (the 'Investment
Manager'). However, if any relevant markets are not open on a Dealing Day, the
value of the relevant Investments on the previous Dealing Day shall be used,
using the same timing criteria. For the purposes of this Fund, a Dealing Day
shall be each Business Day (i.e. a day on which banks are normally open for
business in London).
The Net Asset Value per Share of the class of the Fund shall be published
daily (on the Business Day following the Valuation Point on the relevant
Dealing Day) in the Financial Times and such other publications and with such
frequency as the Directors may determine.
Subscriptions and Redemptions
Initial Offer in the Netherlands
Shares of the Fund will initially be offered in the Netherlands between 9.30am
(Irish Time) on 19 September, 2001 and 4.30pm (Irish Time) on 21 September
2001 at a price per Share equal to the Net Asset Value thereof as at 4.30 pm
on 21 September 2001 (or such earlier or later date as the Directors may in
their discretion determine). Shares will be issued for a price to be satisfied
partly by the transfer of investments and partly for cash. Applications should
be made by completing the Application/Redemption Form and sending to the
address specified in the form. The Application/Redemption Form must be
received, and arrangements made by 4.30pm (Irish Time) on 21 September 2001
(or such earlier or later date as the Directors may in their discretion
determine) for settlement of the transfer of Investments and cash payments
within three Business Days thereafter.
It is expected that dealings in the Shares of the Fund within the NextTrack
Segment will commence on 24 September 2001.
Shares in the Fund may be subscribed for and redeemed on each Dealing Day (in
the Netherlands only from 24 September 2001) at the Net Asset Value thereof
plus associated duties and charges.
Applications for subscriptions or redemptions must normally be received and
accepted by 4.30pm (Irish time) on the relevant Dealing Day. Settlement of the
transfer of Investments and cash payments in respect of subscriptions must
take place within three Business Days after the Dealing Day and settlement of
the transfer of investments and cash payments with respect to redemptions will
take place within five Business Days of the relevant Dealing Day. Where the
Manager reasonably believes that it is in the interest of Shareholders, it may
determine that applications must be received by such earlier time on the
relevant Dealing Day as they may determine.
The minimum number of Shares in the Fund which may be subscribed for or
redeemed is normally 130,000 or multiples of 130,000 (such number may be
reduced in any case at the discretion of the Manager). This minimum number
will be disapplied in exceptional circumstances:
* 'Valuations, Subscriptions and Redemptions - Subscriptions when shares
trade at a Premium', in which case the minimum cash subscription per
investor shall be Euro1,600,000; and
* 'Valuations, Subscriptions and Redemptions - Redemptions when shares
trade at a Discount', in which case no minimum amount shall apply.
Shareholders of the class of shares of the Fund may switch to the existing
class of shares of each of the other funds of the Company.
Switching may be effected by application to the Manager on such switching form
as it may prescribe.
The minimum number of Shares of the original fund which may be switched to
Shares of the new fund is 100,000 or multiples thereof (such numbers may be
reduced in any case at the discretion of the Manager). No switches will be
made during any period in which the rights of Shareholders to deal in the
Shares of the original fund and/or the new fund are suspended. An original
switching form must be received by the Manager by 4.30pm (Irish time) on the
relevant Dealing Day.
The number of shares to be issued in the new fund will be calculated in
accordance with the following formula:
A = Bx(C-D)
A = number of shares of the new fund to be allocated
B = number of shares of the original fund switched
C = redemption price per share on the relevant Dealing Day for
the original fund
D = the switching fee of up to 5% of the Net Asset Value of each
share of the original fund switched
E = subscription price per Share on the relevant Dealing Day for
the new fund.
It should be noted that the Company will normally impose a fee on the
switching of any shares between the two funds of a maximum of 5% of the Net
Asset Value of each Share to be switched. Such fee may be waived by the
Manager at its discretion in any case.
A redemption dividend may be payable immediately prior to a switch in respect
of the accrued income reflected in the Net Asset Value of the Shares which are
to be switched.
If, as a result of a switch, a shareholder would hold a fraction of a share in
the new fund, such fraction of a Share in the new fund will not be issued but
the value thereof will be retained by the Company in order to defray
Transfer of Shares
The Shares of the class of the Fund are held in dematerialised form and
admitted as participating securities to the CREST system. This enables members
of CREST to hold shares in, and to settle transactions in these Shares
through, the CREST system.
Persons dealing in CREST or NECIGEF may be required to provide a
representation that any transferee is a qualified holder.
The Company may decline to register any transfer of a share to a person who is
not a qualified holder or where such transfer might expose the Company to
adverse tax or regulatory consequences. Shares transferred in breach of these
requirements may be compulsorily redeemed.
Fees and Expenses
The expenses relating to the issue and the admission of the Fund to listing on
Euronext and the London Stock Exchange, including professional fees and
expenses (including those of the sponsors) are estimated to amount, in
aggregate, to Euro300,000 (including VAT) and are payable by the Company on
behalf of the Fund. These fees and expenses will be amortised over the first
five financial years of the Fund, or such other period as the Directors may
The Manager will be entitled to a fee of 0.50 per cent per annum of the Net
Asset Value of the Fund. The Manager will be responsible for discharging, from
its fee, all fees of the Investment Manager, the Administrator and the
Custodian together with all reasonable out of pocket expenses of such service
providers (excluding sub-custodial fees and expenses, (which will be at normal
commercial rates) and transaction related charges of the Administrator and
The Fund will pay certain transaction expenses relating to the acquisition and
disposal of investments as set out in the Prospectus. In addition, the Fund
will incur other costs of up to 0.05 per cent per annum. Where the actual
costs incurred exceed this amount, the excess will be discharged by the
The shares in the Fund are not in any way sponsored, endorsed, sold or
promoted by FTSE International Limited ('FTSE') or by the London Stock
Exchange Limited (the 'London Stock Exchange') or by The Financial Times
Limited ('FT') and neither FTSE nor the London Stock Exchange nor FT makes any
warranty or representation whatsoever, expressly or impliedly, either as to
the results to be obtained from the use of the FTSE Euro 100 Index (the
'Index') and/or the figure at which the Index stands at any particular time on
any particular day or otherwise. The Index is compiled and calculated solely
by FTSE. However, neither FTSE nor the London Stock Exchange nor FT shall be
liable (whether in negligence or otherwise) to any person for any error in the
Index and neither FTSE nor the London Stock Exchange nor FT shall be under any
obligation to advise any person of any error therein.
FTSE(TM) is a trademark of the London Stock Exchange Limited and The Financial
Times Limited and is used by FTSE under licence.
Potential investors should consider the risk factors set out in the Supplement
and the Prospectus before investing in this Fund.
Inspection of Documents
Copies of the Prospectus and the Supplement relating to this Fund will be
available for inspection at any time during normal business hours on any day
(excluding Saturdays, Sundays and public holidays) for a period of fourteen
days from the date hereof free of charge, at the registered offices of the
Company in Dublin and at the offices of Lovells, 65 Holborn Viaduct, London