SAN FRANCISCO, CA -- (Marketwire) -- 11/07/08 -- Barclays Global Investors (BGI), one ofthe world's largest asset managers and ETF providers, announced today thelaunch of iShares Asset Allocation Exchange Traded Funds (ETFs), which aredesigned to provide investors with a diversified portfolio of ETFs withinan efficient ETF structure. The new funds are based on S&P Target Date andTarget Risk Indexes that contain iShares ETFs. The launch coincides withthe 15 year anniversary of the first target date funds for institutionalinvestors, known as LifePath, invented by BGI in 1993. The new iSharesETFs began trading today on the NYSE Arca."As the pioneer of institutional target date funds, we're pleased to offerindividual investors and their financial advisors iShares Asset AllocationFunds that provide diversified, cost-effective one-stop solutions to helpmeet multiple investment needs," said Noel Archard, Head of US iSharesProduct Research and Development at BGI.
Asset allocation is an investment strategy that seeks to balance risk andreward in a portfolio by spreading investments over several types of assetclasses, such as equities, fixed-income and other non-equity correlatedassets. Asset allocation is widely considered to be the basis of aproperly designed long-term investment program. Target date fundscorrespond to an anticipated timing need for funding life events such asretirement or paying for college, whereas target risk funds correspond to aparticular level of risk tolerance.
Net ExpenseNew iShares Target Date Funds: Ticker Ratio ------- ---------iShares S&P Target Date Retirement Income Index Fund TGR 0.31%iShares S&P Target Date 2010 Index Fund TZD 0.31%iShares S&P Target Date 2015 Index Fund TZE 0.31%iShares S&P Target Date 2020 Index Fund TZG 0.31%iShares S&P Target Date 2025 Index Fund TZI 0.30%iShares S&P Target Date 2030 Index Fund TZL 0.30%iShares S&P Target Date 2035 Index Fund TZO 0.30%iShares S&P Target Date 2040 Index Fund TZV 0.29%
Archard said, "The new iShares target date funds are well-suited to IRArollovers or small-sized 401(k) plans who want to offer their participantsan option that combines certain benefits of ETFs such as transparency withthe benefits of target funds, which help mitigate common investor pitfallssuch as poor asset allocation and failure to make portfolio changes overtime."
The Standard & Poor's (S&P) Target Date Indexes are designed to provideexposure to a diversified array of financial assets that shifts over time.Each year S&P conducts a survey of target date funds and combines the rawsurvey data to derive an allocation basis for each of the UnderlyingIndexes. Thus each Underlying Index represents a blend of target dateprovider philosophies.
Net ExpenseNew iShares Target Risk Funds: Ticker Ratio ------- ---------iShares S&P Conservative Allocation Fund AOK 0.31%iShares S&P Moderate Allocation Fund AOM 0.32%iShares S&P Growth Allocation Fund AOR 0.33%iShares S&P Aggressive Allocation Fund AOA 0.34%
Archard said, "iShares Target Risk Funds can be a convenient way forindividual investors and their financial advisors to meet a particularinvestment objective after they have identified the investor's risktolerance with one fund that covers multiple asset classes."
The S&P Target Risk Indices use two innovative features to offerrisk-sensitive exposure to multiple asset classes. S&P identifies avalue-weighted market portfolio. Then it employs a shortfall, or downside,risk control framework that is intended to provide insight into thepotential for negative returns over a given holding period and adjusts theweightings of components in the market portfolio to tailor the risk profileto match the risk targeted by each of the Underlying Indexes.
The iShares Funds are index funds that are bought and sold like commonstocks on securities exchanges. The iShares Funds are attractive to manyindividual and institutional investors and financial intermediaries becauseof their relative low cost, tax efficiency and trading flexibility.Investors can purchase and sell shares through any brokerage firm,financial advisor, or online broker, and hold the funds in any type ofbrokerage account.
Carefully consider the funds' investment objectives, risk factors andcharges and expenses before investing. This and other information can befound in the funds' prospectuses, which may be obtained by calling1-800-iShares or by visiting www.ishares.com. Read the prospectus carefullybefore investing.
About Barclays Global Investors
Barclays Global Investors is one of the world's largest asset managers anda leading global provider of investment management products and serviceswith more than 3,000 institutional clients and over $1.9 trillion of assetsunder management as of June 30, 2008. BGI transformed the investmentindustry by creating the first index strategy in 1971 and the firstquantitative active strategy in 1979. BGI is the global product leader inexchange traded funds (iShares® exchange traded funds) with over 330funds for institutions and individuals globally.
Investing involves risks, including possible loss of principal.Transactions in shares of the iShares Funds will result in brokeragecommissions. Risk controls, asset allocation models, and diversification donot promise any level of performance or guarantee against loss ofprincipal.
The iShares Funds ("Funds") are distributed by SEI Investments DistributionCo. (SEI). Barclays Global Fund Advisors (BGFA) serves as an advisor to theFunds. BGFA is a subsidiary of Barclays Global Investors, N.A., amajority-owned subsidiary of Barclays Bank PLC, none of which is affiliatedwith SEI.
The iShares Funds are not sponsored, endorsed, issued, sold or promoted byStandard and Poor's, nor does this company make any representationregarding the advisability of investing in the Funds. Neither SEI nor BGI,nor any of their affiliates, are affiliated with the company listed above.
©2008 Barclays Global Investors, N.A. All rights reserved. iShares® isa registered trademark of Barclays Global Investors, N.A. All othertrademarks, servicemarks or registered trademarks are the property of theirrespective owners.
