iShares $ Development Bank Bonds UCITS ETF EUR HedgedIndex, costs, backtest, listings and taxation

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The Fund which aims to achieve a return on your investment, through a combination of capital growth and income on the Fund's investments, which reflects the return of the FTSE World Broad Investment-Grade USD Multilateral Development Bank Bond Capped 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 and comply with its credit rating requirements. The Index measures the performance of a sub-set of global US Dollar denominated, fixed-rate, investment grade multilateral development bank debt in the FTSE World Broad Investment-Grade Bond Index (the "Parent Index"). Multilateral development banks are supranational institutions set up by sovereign states whose aim is to foster economic and social progress mostly in developing countries by making finance available for sustainable projects. Only multilateral development banks with a mission statement that states the intent to promote sustainable economic development in developing countries will be eligible for inclusion in the index. This includes (for example) by financially supporting their sustainable development goals or by providing non-financial support for infrastructure development such as policy advice or technical assistance, will be eligible for inclusion in the Index. The Parent Index provides a broad-based measure of the global FI markets and includes government, government-sponsored / supranational, collateralised, and corporate debt. The Parent Index seeks to provide a comprehensive representation of the global, investment grade debt universe. The Index uses a market-value weighted methodology with a cap on each issuer of 25%. The Fund's investment in FI securities that make up the Index will, at the time of purchase, comply with the credit rating requirements of the Index which is investment grade. The Fund uses optimising techniques to achieve a similar return to the Index. These may include the strategic selection of certain securities that make up the Index and also 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 investment purposes. 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). The Fund’s base currency is US Dollar. Shares for this Share Class are denominated in Euro. 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.

UEEG is hedged to EUR; the index the issuer places next to it in its documents is the unhedged, foreign-currency version. Subtracting one from the other does not measure replication quality: it measures the exchange rate. In a year when the currency moves 5%, “the TD” would come out near 5 points — a plausible-looking number, with decimals, and wrong.

Other sites publish that number. We would rather show one figure less than one figure wrong: the TD will return here the day we have the EUR-hedged index series, which the issuer does not publish today.

Still want to know how well this fund tracks its index? Look at the unhedged sister class, DDBB, where fund and index share the same currency: its TD is the right measure of the management, which is the same. Go to the DDBB page →

What tracking difference is and how we compute it →

Countries

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