REG - iShares PLC - Update of Prospectus <Origin Href="QuoteRef">JPR.AX</Origin>

Jupiter EnergyAnnouncement

29/10/2014 13:45

RNS Number : 3517S
iShares PLC
23 September 2014
RNS ANNOUNCEMENT
iShares Public Limited Company - Annual Prospectus Update
23 September 2014
The Directors of the Company wish to advise you that, 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 (on or around) 6 October 2014 (the "Effective Date"). You are being contacted because you are invested in one or more of the sub-funds of the Company.
iShares is committed to the continuous enhancement of its product suite. The changes being made will not affect 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 please refer to the prospectus for full details of the changes covered in this letter.
Changes to benchmark index descriptions
Changes are being made to update the current benchmark index descriptions applicable to certain sub-funds of the Company in line with the current descriptions published by the relevant benchmark index providers. Please refer to the prospectus for the new descriptions.
Anticipated tracking error
The anticipated tracking error figures 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 the Schedule 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 and the returns of its benchmark index.
Change to market risk exposure calculation methodology
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 for the majority of sub-funds the commitment approach is a more suitable methodology based on the sub-funds' investment strategies and risk profiles, instead of the VaR approach currently used by the Company in respect of its sub-funds. The risk management methodology of the sub-funds (except for iShares  Corporate Bond Interest Rate Hedged UCITS ETF, iShares $ Corporate Bond Interest Rate Hedged UCITS ETF and iShares MSCI Japan USD Hedged UCITS ETF which will remain on the VaR approach due to their more extensive use of derivatives as part of their hedging strategy) will therefore change from the VaR approach to the commitment approach on the Effective Date.
Please note that this change relates to the way that the risk of the sub-funds is measured. The way the sub-funds are managed will not change. 
Changes affecting the primary market only
 Shortening settlement cycles: The European Commission has recently published the Central Securities Depositories Regulation as part of an initiative to harmonise and shorten securities settlement cycles across Europe. A settlement cycle is the time it takes to complete a transaction for the purchase or sale of securities (e.g. shares or bonds). From 1 January 2015, participants in a securities settlement system in the EU will be required to settle their securities transactions no later than two business days after the date on which a trade is executed (T+2). In order to implement the regulation, most central securities depositories (i.e. the settlement systems linked to stock exchanges) within Europe have announced that they will shorten their standard settlement cycles to T+2 from 6 October 2014.
In order to reduce the impact of the changes on certain sub-funds of the Company with a holding in European equity securities (e.g. shares), the primary market settlement cycles of certain sub-funds which hold European equity securities (set out in the Schedule) will be shortened to T+2 with effect from the Effective Date. The redemption settlement cycles will remain unchanged. The settlement cycles for sub-funds which hold European fixed income securities (e.g. bonds) will not be changed at this time but may be changed at a later date to be announced. 
Please note that the Central Securities Depositories Regulation will also change settlement cycles for sub-funds in the secondary market (i.e. on exchange). Please consult your broker for details on how those changes will impact you.
 Dealing timetable: the content of the dealing timetable has been streamlined in order to allow more flexibility to adapt dealing procedures in line with other changes in-between prospectus updates, for example changes such as the settlement cycle changes described above. Full details of dealing timetables will continue to be available to primary market investors on iShares Online (the online dealing portal).
Changes to specific sub-funds
 Name changes - the "(Inc)" in the name of the following sub-funds will be replaced with "(Dist)" (to refer to the distribution of income): iShares FTSE 100 UCITS ETF (Inc), iShares MSCI Brazil UCITS ETF (Inc),iShares MSCI Emerging Markets UCITS ETF (Inc),iShares MSCI Japan UCITS ETF (Inc), iShares MSCI Korea UCITS ETF (Inc), iShares MSCI World UCITS ETF (Inc) and iShares S&P 500 UCITS ETF (Inc).
Disclosure required for sub-fund registration in Mexico - a disclosure for the following non-replicating sub-funds is to be inserted to state that the investment manager will not invest more than 20% of the net asset value of the relevant sub-fund in securities that are not components of the underlying index: iShares Core MSCI Emerging Markets IMI UCITS ETF, iShares MSCI Emerging Markets UCITS ETF (Inc), iShares MSCI Japan UCITS ETF Inc, iShares $ Corporate Bond UCITS ETF and iShares Global Corporate Bond UCITS ETF. Please note that this is a disclosure required by the competent authority in Mexico in order to register sub-funds for sale in Mexico. The way the relevant sub-funds are managed will not change.
Schedule
Anticipated tracking error
Sub-fund
Anticipated tracking error (referenced in current prospectus)
Revised anticipated tracking error (to be referenced in new prospectus)*
iShares EURO STOXX Small UCITS ETF
Up to 0.300%
Up to 0.400%
iShares MSCI Eastern Europe Capped UCITS ETF 
Up to 2.500%
Up to 0.800%
iShares Core  Corporate Bond UCITS ETF
Up to 0.500%
Up to 0.400%
iShares Euro Inflation Linked Government Bond UCITS ETF
Up to 0.050%
Up to 0.200%
*Figures accurate as at the date of this announcement, please refer to the prospectus for final approved figures.
Sub-funds impacted by the shortening of settlement cycles
iShares Core MSCI Emerging Markets IMI UCITS ETF
iShares AEX UCITS ETF
iShares Asia Pacific Dividend UCITS ETF
iShares EURO Total Market Growth Large UCITS ETF
iShares EURO STOXX Mid UCITS ETF
iShares EURO Dividend UCITS ETF
iShares EURO STOXX Small UCITS ETF
iShares EURO Total Market Value Large UCITS ETF
iShares FTSE 100 UCITS ETF (Inc)
iShares FTSE 250 UCITS ETF
iShares MSCI Japan UCITS ETF (Inc)
iShares MSCI Korea UCITS ETF (Inc)
iShares MSCI North America UCITS ETF
iShares MSCI Taiwan UCITS ETF
iShares UK Dividend UCITS ETF
iShares European Property Yield UCITS ETF
iShares China Large Cap UCITS ETF
iShares FTSEurofirst 100 UCITS ETF
iShares FTSEurofirst 80 UCITS ETF
iShares MSCI AC Far East ex-Japan UCITS ETF
iShares MSCI Brazil UCITS ETF (Inc)
iShares MSCI Eastern Europe Capped UCITS ETF
iShares MSCI Emerging Markets UCITS ETF (Inc)
iShares MSCI Europe ex-UK UCITS ETF
iShares MSCI World UCITS ETF (Inc)
iShares S&P 500 UCITS ETF (Inc)
iShares MSCI Japan USD Hedged UCITS ETF
Enquiries:
iShares - General Enquiries 0845 357 7000
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