iShares € Govt Bond Climate 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 FTSE Advanced Climate Risk-Adjusted European Monetary Union Government Bond Index, (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. The Index measures the performance of fixed-rate, local currency government bonds of countries participating in the European Monetary Union that have a remaining time to maturity of at least one year, which are part of the FTSE EMU Government Bond Index (“Parent Index”). The Index seeks to provide a higher exposure to countries less exposed to climate change risks and a lower exposure to countries that are more exposed to climate change risks. The index provider will also apply constraints to the constituents of the Benchmark Index, relative to the Parent Index, to help ensure index diversification and manage concentration risk. The FI securities will be investment grade (i.e. meet a specified level of creditworthiness) at the time of purchase. The Index is market capitalisation weighted. Market capitalisation is the market value of the outstanding bond issuance. The Index weights the government bonds of each country based on the market capitalisation of the country’s eligible debt (in the same way as the Parent Index) but also adjusts the country weighting in the Index based on its assessment of each country’s relative climate risk exposure. The Fund uses optimising techniques to achieve a similar return to its Index which may include the selection of securities that make up the Index or securities which provide similar performance to certain constituent securities. These may also include the use of financial derivative instruments (FDIs) (i.e. investments whose prices are based on one or more underlying assets). FDIs may be used for direct investment purposes. The Fund's investments in FI securities will, at the time of purchase, comply with the credit rating requirements of the Index. Where the securities no longer meet such requirements, the Fund may continue to hold them until they cease to form part of the Index and it is practicable to sell them. 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 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

• BG Saxozero within the savings plan (buys)