iShares Global Aggregate Bond ESG SRI UCITS ETF NZD HedgedIndex, costs, backtest, listings and taxation

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The Share Class is a share class of a Fund which 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 Bloomberg MSCI Global Aggregate Sustainable and Green Bond ESG SRI Index (“Index”). The Share Class, via the Fund, is passively managed and aims to invest in the fixed income (“FI”) securities (such as bonds) that make up the Index and comply with its credit rating requirements. The Index measures the performance of securities comprising the Bloomberg Global Aggregate Index (“Parent Index”) that are local currency denominated, fixed-rate, investment grade, government, government-related, corporate and securitized bonds from developed and emerging markets and excludes issuers based on the index provider's environmental, social and governance ("ESG"), socially responsible investment ("SRI") and other criteria. The Index will allocate at least 10% of its market value to securities classified as green bonds under the index methodology. Green bonds are defined by the index provider as FI securities whose proceeds are exclusively and formally applied to projects or activities that promote climate or other environmental sustainability purposes. Issuers are excluded from the Index if they are involved in certain business lines/activities, as outlined in the Index description of the Fund in the Fund’s Prospectus. Green, Social, and Sustainability (GSS) bonds from such issuers may be included if their proceeds support projects promoting positive environmental or social outcomes. Companies that are in violation of United Nations Global Compact principles or OECD Guidelines for Multinational Enterprises are alwaysso excluded from the Index To be eligible for inclusion in the Index, the bonds must have at least one year until final maturity, comply with minimum local currency par amounts outstanding set by the index provider and be rated investment grade (i.e. meet a specified level of creditworthiness). Where a rating from only two agencies is available, the lower is used. The Fund uses optimising techniques to achieve a similar return to its Index. The investment manager may use financial derivative instruments (FDIs) (i.e. investments the prices of which are based on one or more underlying assets) to help achieve the Fund’s investment objective. FDIs may be used for direct investment purposes. The Fund may obtain limited exposure to securities which do not satisfy the ESG criteria. The Fund will adopt a best-in-class approach to sustainable investing. This means that it is expected that the Fund will invest in the best issuers from an ESG/SRI perspective (based on the ESG and SRI criteria of the Index) within each relevant sector of activities covered by the Index. The Fund may also engage in short-term secured lending of its investments to certain eligible third parties to generate additional income to offset the costs of the Fund.

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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 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). The Fund’s base currency is US Dollar. Shares for this Share Class are denominated in New Zealand Dollar. The performance of your shares may be affected by this currency difference. Your shares will be hedged with the aim of reducing the effect of exchange rate fluctuations between the denominated currency of the shares and the Fund’s underlying portfolio currencies or the Fund’s base currency. FDIs, including FX forward contracts, will be used for currency hedging purposes. The hedging strategy may not completely eliminate currency risk and, therefore, may affect the performance of your shares. Please see the prospectus for further details. 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.

Countries

• XTBzero (up to €100,000 monthly volume, unreachable for a retail plan); fractions available in plans