iShares $ Sukuk UCITS ETFIndex, costs, backtest, listings and taxation

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The Share Class aims to achieve a total return, taking into account both capital and income returns, which reflects the return of the J.P. Morgan EM Aggregate Sukuk Index the Fund’s benchmark index (Index). The Share Class, via the Fund, is passively managed and aims to invest so far as possible, and in a manner consistent with Shari’ah principles, in the Sukuk instruments that make up the Index. The Index measures the performance of US Dollar denominated emerging market Sukuk instruments issued by sovereign, quasi-sovereign, corporate and supranational entities. Companies included in the Index (i) be denominated in US Dollar; (ii) have a current face amount outstanding of US$500 million or more; (iii) have at least two and a half years until maturity at the time of inclusion or, in the case of issues already included in the Benchmark Index, have at least six months until maturity at the time of each rebalance; and (iv) be labelled as Sukuk and be compliant with the standards published by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). The Index is market value weighted and rebalances on a monthly basis. Index constituents are capped in accordance with the Index’s methodology. The Fund intends to use optimisation techniques in order to achieve a similar return to the Index. These may include the strategic selection of certain Sukuk that make up the Index or other Sukuk which provide similar performance to certain constituent securities, provided that such action is undertaken in a manner believed to be consistent with Shari’ah principles.

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The price of fixed income securities may be affected by changing interest rates which in turn may affect the value of your investment. Fixed income securities prices move inversely to interest rates. Therefore, the market value of fixed income securities may decrease as interest rates increase. The credit rating of an issuing entity will generally affect the yield that can be earned on fixed income 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?”).

The depositary of the Fund is The Bank of New York Mellon SA/NV, Dublin Branch. Further information about the Fund can be obtained from the latest annual report and half-yearly reports of the iShares II 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 distributing shares (i.e. income will be paid on the shares quarterly). 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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Dividends