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Thursday 07 December, 2017

iShares V PLC

Annual Update Notification

RNS Number : 7536Y
iShares V PLC
07 December 2017
 

iShares V plc

 

iShares V plc (the "Company") - As part of the annual review and update of the Company's prospectus, changes will be made to the prospectus that will affect certain sub-funds of the Company (see below) with effect from (or around) 22 December 2017 (the "Effective Date").

 

 

07 December 2017

 

iShares is committed to the continuous enhancement of its product suite. The changes being made will not have any material adverse effect on the manner in which your investment is managed. You are not required to do anything as a result of this notification.

 

A new version of the Company prospectus will be published on (or around) the Effective Date and will be available on www.ishares.com. Shareholders should refer to the prospectus for full details of the changes covered in this letter.

 

German Tax Reform

 

Pursuant to the new German Investment Tax Act (InvStG2018) which comes in to effect from 1 January 2018, the Company's prospectus has been updated in relation to certain sub-funds of the Company that have equity exposures.  Please refer to the prospectus for the details of the changes.

 

Anticipated tracking error

 

The anticipated tracking error figures of the sub-funds of the Company have been reviewed and certain adjustments have been made in order to ensure that the anticipated figures remain as accurate as possible. Please refer to Schedule 1 for a comparison of the current and revised figures.

 

Tracking error is the annualised standard deviation of the difference in monthly returns between a sub-fund and its benchmark index. Anticipated tracking error is based on the expected volatility of differences between the returns of the relevant sub-fund (or its share classes) and the returns of its benchmark index.

 

Benchmark Index Descriptions

 

The benchmark index descriptions for a number of sub-funds of the Company have been revised and updated where necessary.

 

Primary Market Dealing

 

The valuation points and cut-off times which apply to subscription and redemption requests have been amended.

 

 

Change to market risk exposure calculation methodology for iShares € Corp Bond Interest Rate Hedged UCITS ETF

 

In order to measure the global exposure of the sub-funds and to manage the potential loss to the sub-funds due to market risk, BlackRock Asset Management Ireland Limited (the "Manager") is required to select an appropriate risk management methodology. The selection should be based on the risk profile of the sub-funds, which results from each sub-fund's investment policy (including its use of financial derivative instruments).

 

An advanced risk measurement methodology (the "Value at Risk", or "VaR" approach) is required where a sub-fund engages in complex investment strategies or has more than a negligible exposure to financial derivative instruments, and the "commitment" approach, which is the alternative methodology, is intended for sub-funds that do not generally engage in such strategies. The Manager has concluded that the commitment approach is a more suitable methodology based on the investment strategy and risk profile of iShares € Corp Bond Interest Rate Hedged UCITS ETF, instead of the VaR approach currently used by the Company in respect of this sub-funds. The risk management methodology of the sub-fund will therefore change from the VaR approach to the commitment approach on the Effective Date. This is in line with all other sub-funds of the Company.

 

Please note that this change relates to the way that the risk of the sub-fund is measured. The way the sub-fund is managed will not change.

 

Please contact [email protected] if you have any queries concerning the changes to the Company.

 

iShares - General Enquiries                                                                +44 845 357 7000

 

J&E Davy (Sponsor)

 

Fergal Meegan / Brian Garrahy                                                           +353 1 6796363

 

 


SCHEDULE 1

 

Anticipated tracking error

 

The anticipated tracking error for the following sub-funds has been revised as set out below:

 

Sub-fund

Anticipated tracking error (referenced in current prospectus)

 

Revised anticipated tracking error (to be referenced in new prospectus from the Effective Date)

iShares € Corp Bond Interest Rate Hedged UCITS ETF

Up to 0.350%

Up to 0.300%

iShares J.P. Morgan $ EM Corp Bond UCITS ETF

Up to 0.100%

Up to 0.200%

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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