1. finance
2. investing
3. funds
4. mutual funds

ETP LANDSCAPE
MONTHLY SNAPSHOT | MAY 31, 2013
The opinions expressed are as of May 31st, 2013
and may change as subsequent conditions vary.
FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION
What’s Inside
BlackRock ETP Research
Dodd Kittsley,
Head of BlackRock ETP Research
Raj Seshadri
Head of BlackRock ETP Insights
For inquiries, contact
[email protected]
Global ETP Monthly Overview
3
Global ETP Year-To-Date Overview
4
Global ETP Flows Year-To-Date View
5
Japan Equity Exposure ETPs
6
Gold ETPs
7
US Sector ETPs
8
ETPs Flows By Listing Region
9
ETPs and Mutual Fund Monthly Flows
10
Largest Asset Gathering ETPs Launched in 2013
11
Largest Year-To-Date Fund Inflows and Outflows
12
ETP Flows by Exposure:
Developed Equities
13
EM Equities, Fixed Income, & Commodities
14
Endnotes
15
HIGHLIGHTS1
 Investors exhibited an increased appetite for economically-sensitive assets
compared to last month as the majority of this month’s flows were in Equity funds
 May ETP flows reached $26.5 billion, up substantially over April results of
$9.2 billion
 Year-to-date ETP flows grew 24% over 2012 levels and continued at a
record-setting pace through May, breaking through the $100 billion mark
 Flows into Japanese Equities continued despite some local equity market
volatility, with flows accelerating to a new record high
 Gold outflows continued for a fifth straight month
 In the US Sector category, there was a clear shift in investor preference from
defensive categories in April to economically sensitive categories in May
About the ETP Landscape: Monthly Snapshot Report
The “ETP Landscape: Monthly Snapshot” provides a summary of ETP assets
under management and asset flows at a global level for the most recent
month-end period.
Subscribe
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FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION
[2]
Global ETP
Monthly Overview
Highlights (US$):1
Global ETP flows during May reached $26.5bn, the second
strongest month this year. Investors exhibited an increased
appetite for economically-sensitive assets compared to last
month as the majority of flows were in Equity funds — $26.9bn
or more than 100%. However, Fixed Income funds still posted
a third solid month in a row, gathering $5.6bn.
The key themes during the month were the acceleration of
flows into Japanese Equity ETPs, continued redemptions from
Gold funds, shifting investor preference within Sector Equities,
and more robust flows into Intermediate-Maturity Fixed Income
funds.
MAY RESULTS AT A GLANCE1
(US $billions)
May
2013
April
2013*
December
2012
May
2012
Monthly Flows
26.5
9.2
38.7
18.8
Assets
2,126
2,114
1,944
1,619
# of ETPs
4,871
4,855
4,759
4,697
*Apr-2013 restated with additional Asia Pacific data
GLOBAL 13-MONTH ROLLING NET FLOWS1
2013 YTD Net Flows: $105.4bn
 Funds with Japanese Equity exposure accumulated
(US$bn)
$10.2bn. This was the largest single monthly inflow on
record. Flows were not materially impacted by the late-May
turbulence in the Japanese Equity markets.
 Investors further trimmed Gold exposure in the face of
more moderate inflation expectations. Gold ETP outflows
continued in May to the tune of ($5.7bn), half the level seen
in April, but still the 5th straight month with outflows of more
than ($1bn).
 US Listed U.S. Sector Equity flows shifted toward riskier
categories. Cyclical and Sensitive sector funds gathered
$6.6bn while redemptions in defensive sector funds totaled
($1.4bn). This pattern was apparent in January and February
but had reversed in March and April.
 Short-Maturity Fixed Income funds brought in a healthy
$2.8bn in May, but for the first time this year were eclipsed
by Intermediate-Maturity funds (see below) which registered
flows of $4.2bn.
COMPOSITION (%) OF FIXED INCOME FLOWS
BY MATURITY1,2
(US$bn)
May 2013
5.6
YTD 2013
26.4
-40%-20% 0% 20% 40% 60% 80%100%120%
Short
FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION
Intermediate
Other
[3]
Global ETP
Year-To-Date Overview
Year-To-Date Highlights (US$):1
Year-to-date global ETP inflows passed the $100 billion
mark and continued at a record-setting pace
 YTD flows of $105.4bn are up 24% over the previous YTD
record high of $85.1bn set in May 2012.
 Equity funds led with more than $100 billion of YTD flows
which are up more than 100% over last year’s YTD flows of
$43.5bn.
 US and Japanese Equity exposures account for the bulk
of the year-over-year growth. Both equity markets have
been bolstered by accommodative Central Bank monetary
policies.
 Japanese Equities appeal to investors outside of Asia
who account for 72% of the YTD flows into the category.
Funds domiciled in Asia attracted $6.5bn of the total flows
while offshore funds domiciled in the US and Europe drew in
$16.5bn, or 72%. In contrast, these offshore funds account
for only 35% Japanese Equity ETP assets.
 Short Maturity funds (Floating Rate, Ultra-Short-Term
and Short-Term) have been the engine for Fixed Income
growth this year, accumulating $17.8bn. Last May, the
duration picture was completely different with YTD inflows of
$2.6bn for Short Maturity funds.2
 Yield remains the most noteworthy Equity theme this
year. May saw record-high monthly flows of $3.7bn into
Dividend Income funds, bringing the YTD total to a recordbreaking level of $14.5bn. When added to the $6.9bn from
Real Estate and $3.3bn from Preferred Stock, yield-oriented
Equity funds have accumulated $24.7bn YTD.
 US Listed US Sector Equity ETPs have brought in
$19.0bn YTD. Investors have put the most money to work in
Real Estate with $3.8bn and Financials with $3.9bn.
CUMULATIVE EQUITY ETP FLOWS1
CUMULATIVE FIXED INCOME ETP FLOWS1
YTD 2013 Equity Flows: $100.6bn
YTD 2013 Fixed Income Flows: $26.4bn
FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION
[4]
Global ETP Flows
Year-To-Date View
JAN-MAY 2013 VS. JAN-MAY 2012 GLOBAL ETP FLOWS1
Jan-May 2013 Equity Flows: $100.6bn
GLOBAL ETP YEAR-TO-DATE NET FLOWS BY EXPOSURE1
(US$bn)
Jan-May
2013
Jan-May
2012
Annual
2012
GLOBAL ETP CUMULATIVE NET FLOWS1
FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION
[5]
Japan Equity
Exposure ETPs
Highlights (US$):1
CUMULATIVE JAPAN EQUITY ETP FLOWS1
 Japan Equity ETPs gathered a monthly record $10.2bn
during May.
 Year-to-date flows have also reached record-setting territory
at $23.1bn, or 22.9% of all Equity ETP flows. By
comparison, flows through Jan-May 2012 totalled just
$4.6bn.
 The pace of flows so far in 2013 is already more than double
the levels seen annually in both 2011 and 2012.
 Only $0.8bn of the flows in May came from Bank of Japan
(BOJ) ETP purchases, which began at the end of 2010.
Year-to-date 2013 BOJ buying now totals $2.5bn.
 Japan Equity ETP flows moderated when equity markets
turned turbulent in late May, but overall flows were not
materially impacted by small outflows of ($0.3bn) on May
31st.
 The TOPIX index is up 32% YTD, after pulling back 10% in
late May.
JAPAN EQUITY ETP DAILY FLOWS IN MAY 20131
1,300
0.9
0.6
(3.3%)
decline
1,200
(3.8%)
decline
0.3
1,100
Daily flows (US$bn)
TOPIX Index Value
(6.9%)
decline
0.0
1,000
(0.3)
5/15
5/16
5/17
5/20
5/21
FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION
5/22
5/23
5/24
5/27
5/28
5/29
5/30
5/31
[6]
Gold ETPs
Highlights (US$):1
 Gold ETPs had outflows of ($5.7bn) in May 2013, bringing
the year-to-date total to ($23.9bn).
 Total assets in gold ETPs globally shrank to $96.2bn, a
decrease of (31.9%) from the $141.2bn at year-end 2012
 What’s causing the reversal?
• There’s the recent weakness in gold spot prices, which
have fallen17% year-to-date and about 27% from a record
high of $1900 a troy ounce hit in September 2011.
• Another factor is a growing belief that monetary easing
from the Fed may end in the near term which could cause
interest rates to rise.
 But while some investors may be reacting to the current
environment, it’s clear that a significant number are standing
their ground. While gold has historically been seen as a
potential cash alternative in periods of economic uncertainty
and a hedge against inflation concerns or a weakening
dollar, many invest in gold as a long-term holding due to its
diversifying properties.
 Gold has historically shown little to no correlation with other
major asset classes, including commodities, and gold is a
beneficiary of negative real interest rates which have
persisted for some time in many developed economies.
• Add these factors to a stronger US dollar, the continued
demand for equities, and a general shift away from
traditional “safe haven” assets (such as Treasuries), and
you can see why some tactical investors are pulling back
on their gold exposure.
CUMULATIVE GOLD ETP FLOWS1
GOLD ETP ASSETS1
160
140
Assets (US$bn)
120
100
80
60
40
20
FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION
May-13
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
0
[7]
US Sector ETPs
US LISTED US SECTOR ETP MONTHLY FLOWS1
Highlights (US$):1
 US Sector Equity ETPs accumulated $5.1bn in May and
have now attracted $19.0bn YTD. This has already topped
the full-year total from 2012 and is higher than 2010 and
2011 combined.
 US Sector assets stood at $103bn at the end of 2010 and
are now up to $170.7bn, including an increase of $37.3bn so
far in 2013.
 As investors become increasingly comfortable with risk and
more confident in the economy, they should naturally
gravitate away from the relative safety of Defensive sectors
and toward the potential outperformance of the Cyclical and
Sensitive categories.
 Investors returned to Cyclical and Sensitive sectors in May,
contributing flows of $6.6bn after a pause in April. YTD asset
gathering has reached $16.0bn ($9.8bn for Cyclical and
$6.2bn for Sensitive).
 At the same time, Defensive sectors have fallen out of favor
with May redemptions of ($1.4bn) after three strong months
of inflows. YTD flows are still $2.7bn but it is possible that
investors are beginning to rotate away from Defensive
sectors given historically high valuations.
Cyclical
Defensive
Basic Materials, Consumer Cyclicals, Financials, Real
Estate
Consumer Non-Cyclicals, Health Care, Utilities
Sensitive
Energy, Industrials, Technology, Telecommunications
Theme
Non-traditional GICS sectors
FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION
[8]
ETP Flows By
Listing Region
Highlights (US$):1
 Funds listed in the US account for 71% of global ETP assets.
YTD 2013 flows into US-listed products represent 81% of the
global total compared to 71% for full-year 2012.
 ETP assets in the US have grown 11% YTD, the highest rate
 Asia Pacific ETP assets have also grown at a fast pace at
9% YTD.
 Europe and Canada have seen slower growth rates so far in
2013.
of any region, aided by market price movements with the
S&P 500 crossing 1,600 for the first time in history.
ASSET GROWTH RATES AND # OF ETPs1
MAY NET FLOWS BY LISTING REGION1
(# ETPs)
50
Asia Pacific
2013 Growth in # ETPs
40
Europe
$378
$149
Bubble
size =
Assets
($bn)
30
US
$1,502
20
10
0
-10 0%
Canada
Latin
America
$13
$58
2%
4%
6%
8% 10%
2013 AUM Growth
12%
14%
LISTING REGION VIEW1
Net Flows
By Listing Region
May
2013
FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION
YTD
2013
May 2013
Assets
% Asset
Market
Share
Number of
Products
[9]
ETPs and Mutual Fund
Monthly Flows
Highlights (US$):1,3
 Developed Equity mutual fund flows have shifted from
outflows in 2012 to net inflows in 2013. Year-to-date, mutual
funds have drawn in $69.9bn while Developed Equity ETPs
attracted inflows of $104.1bn.
 Fixed Income flows have been steady for mutual funds in
2013. Year-to-date, mutual funds have gathered $148.8bn
while Fixed Income ETPs drew in $26.4bn.
 Emerging Markets Equity flows were strong in January 2013
for both mutual funds and ETPs and have been declining
over the last four months. Year-to-date, mutual funds have
gathered $25.1bn while Emerging Markets Equity ETPs
flows turned negative with ($3.5bn) for the year.
DEVELOPED EQUITY MONTHLY FLOWS1,3
EMERGING EQUITY MONTHLY FLOWS1,3
20
30
15
20
10
10
5
0
0
(5)
(10)
Jan-13
Feb-13
Mar-13
Apr-13
May-13
(10)
Jan-13
Feb-13
Mar-13
Apr-13
May-13
FIXED INCOME MONTHLY FLOWS1,3
60
50
40
ETP Flows
30
Mutual Fund Flows
20
10
0
(10)
Jan-13
Feb-13
Mar-13
Apr-13
FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION
May-13
[ 10 ]
Largest Asset Gathering
ETPs Launched in 2013
Highlights (US$):1
 183 new ETPs and 18 individual share class listings debuted
around the globe so far this year.
 73 products and 8 individual share class listing were delisted
this year with combined assets of less than $730mn.
TOP 15 NEWLY LAUNCHED ETPs
Product Name (US$mn)1
Bloomberg
Ticker
FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION
Exposure
Listing
Region
Launch
Date
May-13
Assets
[ 11 ]
Largest Year-To-Date Fund
Inflows and Outflows
ETPs as of May (US$mn)1
Bloomberg Ticker
2013 YTD
Inflows
May-13
Assets
ETPs as of May (US$mn)1
Bloomberg Ticker
2013 YTD
Outflows
May-13
Assets
FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION
[ 12 ]
ETP Flows by Exposure:
Developed Equity
Exposure (US$mn)
May
2013
Net
Flows
1
Large Cap
Mid Cap
Small Cap
Micro Cap
US Size and Style
Total Market
Extended Market
Preferred Stock
US Size and Style Total
Basic Materials
Consumer Cyclicals
Consumer Non-cyclicals
Energy
Financials
Health Care
US Sector
Industrials
Real Estate
Technology
Telecommunications
Utilities
Theme
US Sector Total
US Strategy
US Total
Canada Equity
North America Regional Equity
North America Total
Large Cap
Mid Cap
Pan European
Small Cap
Size and Style
Total Market
Pan European
Size and Style Total
Pan European Sector
Pan European Strategy
Pan European Total
Germany
U.K.
Country
Switzerland
France
Others
Europe Single Country
Total
Europe Total
Asia-Pacific
Regional
Country
Asia Pacific Total
Broad-Based Global /Global ex-US
Developed Equity Total
FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION
2013 YTD
Net
Flows
% of
YTD
Flows
Assets
% of
Assets
# ETPs
7,966
1,063
(1,366)
57
470
(41)
95
8,244
7
1,199
(411)
704
2,272
(819)
650
520
1,492
(61)
(188)
(8)
5,358
1,698
15,301
(126)
183
15,358
204
(13)
67
425
15,807
2,713
6,499
129
7,500
572
2,061
35,280
(90)
2,283
674
2,470
4,224
1,813
857
4,108
2,951
49
229
291
19,860
8,172
63,312
(838)
627
63,101
(428)
(20)
151
(16)
15.0
2.6
6.2
0.1
7.1
0.5
2.0
33.5
(0.1)
2.2
0.6
2.3
4.0
1.7
0.8
3.9
2.8
0.0
0.2
0.3
18.9
7.8
60.1
(0.8)
0.6
59.9
(0.4)
(0.0)
0.1
(0.0)
389,570
65,152
66,555
773
54,322
2,907
17,321
596,602
5,252
14,047
9,573
28,797
26,047
17,893
8,206
32,815
18,976
1,082
8,644
1,232
172,562
59,461
828,625
32,127
7,152
867,905
31,145
707
1,561
26,630
18.3
3.1
3.1
0.0
2.6
0.1
0.8
28.1
0.2
0.7
0.5
1.4
1.2
0.8
0.4
1.5
0.9
0.1
0.4
0.1
8.1
2.8
39.0
1.5
0.3
40.8
1.5
0.0
0.1
1.3
222
50
64
4
60
2
5
407
14
18
12
41
37
28
17
22
31
5
11
9
245
53
705
83
19
807
76
8
13
68
680
(331)
(0.3)
59,996
2.8
164
85
34
802
319
(306)
197
(423)
(1,797)
(0.3)
0.2
(0.4)
(1.7)
11,620
2,689
74,352
38,332
0.5
0.1
3.5
1.8
158
19
342
62
68
259
0.2
15,239
0.7
50
(91)
(467)
99
(730)
0.1
(0.7)
9,205
5,156
0.4
0.2
23
19
119
872
0.8
8,509
0.4
71
(51)
(1,297)
(1.2)
76,440
3.6
225
751
(458)
9,891
(1,720)
1,749
23,408
(1.6)
1.7
22.2
150,793
16,852
117,419
7.1
0.8
5.5
567
57
226
9,434
25,157
23.9
134,270
6.3
283
4,897
30,439
17,543
104,080
16.7
98.8
163,911
1,316,879
7.7
61.9
444
2,101
[ 13 ]
ETP Flows by Exposure: EM
Equity, Fixed Income, &
Commodities
Exposure (US$mn)
Broad EM
May
2013
Net
Flows
1
Broad Emerging Markets
Broad Frontier Markets
Broad EM Total
Regional EM
Brazil
China
India
Russia
EM Single Country
South Korea
Mexico
Others
EM Single Country Total
Emerging Markets Equity Total
Equity Total
Broad/Aggregate
Govt/Corp
Emerging Markets
Municipal
Government - Sovereign
Government - US Treasury
Government Total
Fixed Income
Inflation
High Yield Corporate
Investment Grade Corporate
Money Market
Mortgage
Others
Fixed Income Total
Broad Market
Agriculture
Energy
Industrial Metals
Commodities
Precious Metals - Gold
Precious Metals - Silver
Precious Metals - Others
Precious Metals - Total
Commodities Total
Alternatives
Volatility
Others
Alternatives Total
Asset Allocation
Currency
Israel ETP
Global ETP Total
FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION
2013 YTD
Net
Flows
% of
YTD
Flows
Assets
% of
Assets
# ETPs
(2,578)
4
(2,574)
(97)
(831)
2
73
501
(333)
(410)
115
(883)
(3,553)
26,886
273
1,024
531
283
645
2,229
2,874
(834)
(974)
(1,691)
133
(1,558)
(789)
(2,748)
(2,348)
3
(70)
1,814
2,002
191
(1,158)
(3,505)
100,575
2,525
6,475
2,850
1,024
2,447
3,814
6,261
(1,066)
1,211
(1.6)
0.1
(1.5)
(0.7)
(2.6)
(2.2)
0.0
(0.1)
1.7
1.9
0.2
(1.1)
(3.3)
95.5
2.4
6.1
2.7
1.0
2.3
3.6
5.9
(1.0)
1.1
131,309
466
131,775
8,608
10,673
56,424
5,759
3,760
16,783
11,979
17,429
122,807
263,191
1,580,070
43,189
25,782
22,293
13,891
40,283
36,855
77,138
31,940
39,774
6.2
0.0
6.2
0.4
0.5
2.7
0.3
0.2
0.8
0.6
0.8
5.8
12.4
74.3
2.0
1.2
1.0
0.7
1.9
1.7
3.6
1.5
1.9
109
5
114
81
47
171
53
19
113
18
141
562
757
2,858
31
19
65
35
256
76
332
37
40
2,084
4,146
3.9
82,263
3.9
120
(295)
(254)
883
5,594
(333)
45
(48)
28
(5,727)
(281)
28
(5,980)
(6,288)
(19)
(5)
(24)
308
(7)
-
(947)
21
3,927
26,427
(186)
196
(1,359)
175
(23,914)
507
207
(23,200)
(24,374)
1,583
(1)
1,582
1,206
(58)
-
(0.9)
0.0
3.7
25.1
(0.2)
0.2
(1.3)
0.2
(22.7)
0.5
0.2
(22.0)
(23.1)
1.5
(0.0)
1.5
1.1
(0.1)
-
5,425
8,399
9,140
359,235
17,894
5,465
7,740
2,306
96,208
12,825
5,151
114,184
147,589
3,406
2,953
6,358
4,172
4,972
23,999
0.3
0.4
0.4
16.9
0.8
0.3
0.4
0.1
4.5
0.6
0.2
5.4
6.9
0.2
0.1
0.3
0.2
0.2
1.1
20
7
33
739
118
202
214
126
115
68
83
266
926
49
78
127
72
149
-
26,469
105,359
100.0
2,126,395
100.0
4,871
[ 14 ]
Endnotes
Exchange traded products (ETPs) are portfolio exposure securities that trade intra-day on an exchange
The ETP (or exchange traded product) category encompasses any portfolio exposure security that trades intra-day on an exchange. The data for this report
are captured from a number of sources by the BlackRock Investment Institute including provider websites, fund prospectuses, provider press releases,
provider surveys, Bloomberg, the National Stock Exchange, Strategic Insight Simfund, Wind and the Bank of Israel. All amounts are reported in US dollars.
Net flows are derived using daily net asset values and shares outstanding using the most recent data we can capture at month-end. For products with crosslistings, we attribute net flows and assets to the primary listings. For Middle East and Africa, net flows data is not available. assets are derived using shares
outstanding and prices at the end of each month (or the closest date available). Where price is not available, we use an approximation. For ETPs listed in
Israel, product level detail is not available. Product level information is aggregated by provider, asset class, exposure, region listed and replication method to
produce the various analyses in the report.
1.
Data is as of May 30, 2013 for Europe and May 31, 2013 for the US, Canada, Latin America, Israel, and some Asia ETPs. Some Asia ETP data is as of
April 30, 2013. Global ETP flows and assets are sourced using shares outstanding and net asset values from Bloomberg for the US, Canada, Europe,
Latin America and some ETPs in Asia. Middle East ETP assets are sourced from the Bank of Israel. ETP flows and assets in China are sourced from
Wind. Inflows for years prior to 2010 are sourced from Strategic Insights Simfund. Asset classifications are assigned by the BlackRock based on
product definitions from provider websites and product prospectuses. Other static product information is obtained from provider websites , product
prospectuses, provider press releases, and provider surveys.
2.
We classify maturity buckets of a Fixed Income ETP if the fund invests at least 70% of its assets in the corresponding maturity/exposure range: Short
maturity includes: underlying security maturities < 3 years and floating rate where the fund holds floating rate securities and/or bank loans. Intermediate
includes: 3 years < underlying security maturities < 10 years. The “other” category includes Long-Term: underlying security maturities > 10 years;
Broad Maturities: The fund invests in more than two maturity buckets without emphasizing one; Selected Maturities: The fund holds securities with
multiple selected range of maturity buckets, i.e. barbell strategy which focus on the specific short-term and long-term buckets with even weights; and
Fixed Maturity: The fund itself has a target maturity date and arranged holdings correspondingly
3.
Mutual fund data is sourced from EPFR (excluding Money Market funds and ETFs). Full year 2012 and January-April 2013 data is sourced from EPFR
monthly data. May 2013 data is sourced from EPFR weekly data for the four weeks ended May 29, 2013
Index returns are for illustrative purposes only and do not represent actual Fund performance. Index performance returns do not reflect any
management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not
guarantee future results.
ABOUT BLACKROCK
BlackRock is a leader in investment management, risk management and advisory services for institutional and retail clients
worldwide. At March 31, 2013, BlackRock’s AUM was $3.936 trillion. BlackRock offers products that span the risk
spectrum to meet clients’ needs, including active, enhanced and index strategies across markets and asset classes.
Products are offered in a variety of structures including separate accounts, mutual funds, iShares® (exchange traded
funds), and other pooled investment vehicles. BlackRock also offers risk management, advisory and enterprise investment
system services to a broad base of institutional investors through BlackRock Solutions®. Headquartered in New York City,
as of March 31, 2013, the firm has approximately 10,600 employees in 30 countries and a major presence in key global
markets, including North and South America, Europe, Asia, Australia and the Middle East and Africa. For additional
information, please visit the Company's website at www.blackrock.com.
FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION
[ 15 ]
Disclaimer
REGULATORY INFORMATION
BlackRock Advisors (UK) Limited is authorised and regulated by the Financial Conduct Authority ('FCA'), having its registered office at 12 Throgmorton
Avenue, London, EC2N 2DL, England, Tel +44 (0)20 7743 3000.
This document has been provided by BlackRock in a private and confidential manner to professional and or institutional investors (as such term is defined
according to applicable regulations in the relevant jurisdiction) only upon express request.
This document is solely for informational and educational purposes only and represents an assessment of the market environment at a specific time and is
not intended to be relied upon by the reader as research, a forecast of future events or a guarantee of future results.
This publication does not provide financial, investment or tax advice or information relating to the securities of any particular fund or other issuer. The
information and opinions included in this publication are based on publicly available information, are subject to change and should not be relied upon for any
purpose other than general information and education. This publication has been prepared without regard to the individual financial circumstances and
objectives of those who receive it and the types of securities discussed in this publication may not be suitable for all investors.
The information included in this document has been taken from trade and other sources considered to be reliable. This document is published in good faith
but no representation or warranty, express or implied, is made by BlackRock or by any person as to its accuracy or completeness and it should not be relied
on as such. BlackRock or any of its directors, officers, employees or agents shall have no liability for any loss or damage arising out of the use or reliance on
the material provided including without limitation, any loss of profit or any other damage, direct or consequential. Any opinions expressed in this document
reflect our analysis at this date and are subject to change.
This is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any strategy in any jurisdiction.
This document has not been prepared, reviewed or distributed by any broker-dealer affiliate of BlackRock and should not be deemed a product of any such
affiliate.
BlackRock has not performed any due diligence on products which are not managed by BlackRock and accordingly does not make any remark on their
suitability for investment purposes. Past performance is not a guide to future performance . Income is not fixed and may fluctuate. Exposure to foreign
currencies can be affected by exchange rate movements.
This document or any portion hereof may not be reprinted, sold or redistributed without authorisation from BlackRock Advisors (UK) or its affiliates (together,
‘BlackRock’).
This document is not, and under no circumstances is to be construed as an advertisement or any other step in the furtherance of a public offering of shares in
the United States. This document is not aimed at persons who are resident in the United States or any province or territory thereof, where the
companies/securities are not authorized or registered for distribution and where no prospectus has been filed with any securities commission or regulatory
authority. The companies/securities may not be acquired or owned by, or acquired with the assets of, an ERISA Plan.
FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION
[ 16 ]
Disclaimer (continued)
NOTICE TO RESIDENTS IN AUSTRALIA:
Issued in Australia by BlackRock Investment Management (Australia) Limited ABN 13 006 165 975, AFSL 230523 ("BIMAL") to institutional investors
only. iShares® exchange traded funds (“ETFs”) that are made available in Australia are issued by BIMAL, iShares, Inc. ARBN 125 632 279 and iShares
Trust ARBN 125 632 411. BlackRock Asset Management Australia Limited ("BAMAL") ABN 33 001 804 566, AFSL 225 398 is the local agent and
intermediary for iShares ETFs that are issued by iShares, Inc. and iShares Trust. BIMAL and BAMAL are wholly-owned subsidiaries of BlackRock, Inc.
(collectively “BlackRock”). A Product Disclosure Statement (“PDS”) or prospectus for each iShares ETF that is offered in Australia is available at
iShares.com.au.
You should read the PDS or prospectus and consider whether an iShares ETF is appropriate for you before deciding to invest.
iShares securities trade on ASX at market price (not, net asset value ("NAV")). iShares securities may only be redeemed directly by persons called
“Authorised Participants”. This information is general in nature, and has been prepared without taking into account any individual's objectives, financial
situation, or needs. You should seek independent professional legal, financial, taxation, and/or other professional advice before making an investment
decision regarding the iShares funds.
FOR INVESTORS IN CANADA:
The information and opinions herein are provided for informational purposes only, are subject to change and should not be relied upon as the basis for
investment decisions. Past performance is not necessarily indicative of future performance. This document is not and should not be construed as a
solicitation or offering of units of any funds or other security in any jurisdiction. No part of this publication may be reproduced in any manner without prior
written permission of BlackRock Asset Management Canada Limited and/or its affiliates.
FOR INVESTORS IN HONG KONG:
Some of the funds mentioned herein have not been registered with the Securities and Futures Commission for offering or distribution in Hong Kong.
Accordingly, this material may not be circulated or distributed, nor may the funds be offered or sold whether directly or indirectly, to any person in Hong
Kong other than to a Professional Investor as defined in the Securities and Futures Ordinance ("SFO") (Cap. 571 of the laws of Hong Kong) and any
regulations there under.
NOTICE TO RESIDENTS IN INDIA:
This document is intended for information purposes only and does not constitute investment advice or an offer to sell or solicitation of an offer to buy the
funds described herein. This document has been provided by BlackRock in a private and confidential manner to financial intermediaries only upon their
request. The funds mentioned herein have not been registered with any authorities in India.
NOTICE TO RESIDENTS IN JAPAN:
This document is solely for educational purposes and does not constitute advertisement of financial services targeted at investors in Japan. This
document is intended for information purposes only and does not constitute investment advice or an offer to sell or solicitation of an offer to buy the funds
described herein. This document has been provided by BlackRock in a private and confidential manner to Qualified Institutional Investors (as defined in
the Financial Instruments and Exchange Law of Japan) only upon their request.
FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION
[ 17 ]
Disclaimer (continued)
FOR INSTITUTIONAL AND PROFESSIONAL INVESTORS ONLY IN LATIN AMERICA:
In Latin America, for Institutional and Professional Investors only. This material is solely for educational purposes only and does not constitute an offer or a
solicitation to sell or a solicitation of an offer to buy any shares of any securities (nor shall any such securities be offered or sold to any person) in any
jurisdiction within Latin America in which an offer, solicitation, purchase or sale would be unlawful under the securities law of that jurisdiction. It is possible that
all or some of the funds mentioned or inferred to in this material have not been registered with the securities regulator of Brazil, Chile, Colombia, Mexico and
Peru or any other securities regulator in any Latin American country, and thus, might not be publicly offered, purchased or sold within any such country. The
securities regulators of such countries have not confirmed the accuracy of any information contained herein. No information discussed herein can be provided
to the general public in Latin America.
NOTICE TO RESIDENTS IN SINGAPORE:
This document is provided by BlackRock (Singapore) Limited (company registration number: 200010143N) for use with institutional investors only. This
document has not been registered as a prospectus with the Monetary Authority of Singapore (MAS). Some of the funds mentioned herein have not been
registered with the MAS for distribution in Singapore. Accordingly, this and any other document or material in connection with the offer or sale of the Shares
may not be circulated or distributed, nor may the Shares be offered or sold, whether directly or indirectly, to any person in Singapore other than (i) to an
institutional investor pursuant to Section 304 of the Securities and Futures Act (SFA) or (ii) otherwise pursuant to, and in accordance with the conditions of,
any other applicable provision of the SFA. First sales of the Shares acquired pursuant to Section 304 of the SFA are subject to the requirements under Section
304A of the SFA.
NOTICE TO RESIDENTS IN THAILAND:
This document is intended for information purposes only and does not constitute investment advice or an offer to sell or solicitation of an offer to buy the funds
described herein. This document has been provided by BlackRock in a private and confidential manner to institutional investors only upon their request. The
funds mentioned herein have not been registered with any authorities in Thailand, and accordingly, this document may not be circulated or distributed, nor
may the shares of these funds be offered or sold whether directly or indirectly, to any person in Thailand.
NOTICE TO RESIDENTS IN VIETNAM:
This document is intended for information purposes only and does not constitute investment advice or an offer to sell or solicitation of an offer to buy the funds
described herein. This document has been provided by BlackRock in a private and confidential manner to institutional investors only upon their request. The
funds mentioned herein have not been registered with any authorities in Vietnam, and accordingly, this document may not be circulated or distributed, nor may
the shares of these funds be offered or sold whether directly or indirectly, to any person in Vietnam.
© 2013 BlackRock Advisors (UK) Limited. All rights reserved. Registered Company No. 00796793. All rights reserved. Calls may be monitored or recorded.
BLACKROCK, BLACKROCK SOLUTIONS, and iSHARES, are registered and unregistered trademarks of BlackRock, Inc. or its
subsidiaries in the United States and elsewhere. All other marks are those of their respective owners.
iS-10003-0613