iShares $ Asia Investment Grade Corp Bond UCITS ETFIndex, costs, backtest, listings and taxation

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The Fund aims to achieve a return on your investment, through a combination of capital growth and income on the Fund’s assets, which reflects the return of the iBoxx USD Asia ex-Japan Corporates Investment Grade ESG Screened Index, (the Index). The Fund, is passively managed and aims to invest in fixed income (FI) securities that make up the Index and comply with its credit rating requirements. If the credit ratings of the FI securities are downgraded, the Fund may continue to hold these until they cease to form part of the Index and it is practicable to sell the position. The Index aims to measure the performance of US Dollar denominated investment grade corporate bonds across the Asia ex-Japan region countries, as defined by the index provider and excludes issuers based on the index provider's ESG and other exclusionary criteria. Issuers involved in the following business lines/activities (or related activities) are excluded: civilian firearms, controversial weapons, thermal coal, oil sands and tobacco. The index provider defines what constitutes “involvement” in each restricted activity. The Index also excludes companies based on ESG principles which measure each issuer’s involvement in severe ESG controversies and adherence to other practices as determined by the index provider. To be eligible for inclusion in the Index the bonds must (i) be USD denominated; (ii) have a time to maturity of at least 18 months at issuance; (iii) have a minimum of one year to maturity remaining; (iv) have a minimum outstanding amount of US$ 300 million; and (v) be rated investment grade. The Index uses a market-value weighted methodology with a cap on each issuer of 4% and is rebalanced on a monthly basis. The Fund uses optimising techniques to achieve a similar return to its Index. These may include the strategic selection of certain securities that make up the Index or other FI securities which provide similar performance to certain constituent securities. These may also include the use of financial derivative instruments (FDIs) (i.e. investments the prices of which are based on one or more underlying assets). The Fund may also engage in short-term secured lending of its investments to certain eligible third parties to generate additional income to off-set the costs of the Fund. The price of FI securities may be affected by changing interest rates which in turn may affect the value of your investment. FI securities prices move inversely to interest rates. Therefore, the market value of FI securities may decrease as interest rates increase. The credit rating of an issuing entity will generally affect the yield that can be earned on FI securities; the better the credit rating the smaller the yield. The relationship between the return on your investment, how it is impacted and the period for which you hold your investment is considered below (see “How long should I hold it and can I take my money out early?”).

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The depositary of the Fund is State Street Custodial Services (Ireland) Limited. Further information about the Fund can be obtained from the latest annual report and half-yearly reports of the iShares III plc. These documents are available free of charge in English and certain other languages. These can be found, along with other (practical) information, including prices of units, on the iShares website at: www.ishares.com or by calling +49 89427295800 or from your broker or financial adviser.

Your shares will be accumulating shares (i.e. income will be included in their value). Your shares will be denominated in US Dollar, the Fund's base currency. The shares are listed and traded on various stock exchanges. In normal circumstances, only authorised participants may buy and sell shares directly with the Fund. Investors who are not authorised participants (e.g. select financial institutions) can generally only buy or sell the shares on the secondary market (e.g. via a broker on a stock exchange) at the then prevailing market price. The value of the shares are related to the value of the underlying assets of the Fund, less costs (see “What are the costs?” below). The prevailing market price at which the shares trade on the secondary market may deviate from the value of the Shares. Indicative net asset value is published on relevant stock exchanges websites.

Intended retail investor:The Fund is intended for retail investors with the ability to bear losses up to the amount invested in the Fund (see “How long should I hold it and can I take my money out early?”).

Insurance benefits:The Fund does not offer any insurance benefits.

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