iShares € Corp Bond ESG Paris-Aligned Climate UCITS ETFIndex, costs, backtest, listings and taxation

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The Fund which aims to achieve a return on your investment, taking into account both capital and income returns, which reflects the return of the Bloomberg MSCI Euro Corporate Climate Paris-Aligned ESG Select Index (PAB), (the Index). 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 aims to reflect the performance characteristics of a subset of FI securities within the Bloomberg Euro Corporate Index (Parent Index) which are selected and weighted in accordance with the Index methodology whilst seeking to align with the objectives of the Paris Agreement. The Index excludes companies identified by the index provider as being involved in certain environmental, social and governance (“ESG”) activities, including: controversial weapons; nuclear weapons; civilian firearms; conventional weapons; weapon systems, components, support systems and services; tobacco; thermal coal; oil and gas; unconventional oil and gas and power generation. Companies classified as violating the UNGC principles, have a ‘red’ MSCI ESG Controversies score, or have not been assessed by the index provider for an ESG rating, are excluded from the Index. The remaining constituents are selected and weighted based on specific criteria with the aim of meeting certain decarbonization targets and minimizing ex-ante tracking error relative to the Parent Index. The Fund may obtain limited exposure to securities which do not satisfy these ESG criteria. 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). FDIs may be used for direct investment purposes. The Fund will adopt a best-in-class approach to sustainable investing. 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 Fund’s costs. 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 distributing shares (i.e. income will be paid on the shares semi-annually). Your shares will be denominated in Euro, 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.

Countries

Dividends

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

• BG Saxozero within the savings plan (buys)
• XTBzero (up to €100,000 monthly volume, unreachable for a retail plan); fractions available in plans