Last checked at 16 Sep 2011 16:23
To: Shareholders of iShares MSCI EM Latin America (a sub-fund of iShares II plc (the "Company")) (the "Fund")
Re: Change to the benchmark index of the Fund
REPLACEMENT NOTICE
16 September 2011
Dear Shareholder
The Directors of the Company wish to advise you that the benchmark index of the Fund is to change from 3 October 2011 (the "Effective Date"). You are being contacted because you are invested in the Fund.
The current benchmark index
Currently the benchmark index of the Fund is MSCI EM Latin America Index. MSCI EM Latin America Index is a free-float market capitalisation index that is designed to reflect the aggregate performance of the equity markets of Latin America. The index includes securities traded in Mexico, Brazil, Chile, Colombia, Peru and Argentina.
The new benchmark index
From the Effective Date the benchmark index of the Fund will be MSCI EM Latin America 10/40 Index. The name of the Fund will not change (contrary to the notice issued earlier on 16 September 2011). MSCI EM Latin America 10/40 Index offers an exhaustive representation of the emerging Latin American markets (Brazil, Chile, Colombia, Mexico, Peru) by targeting all companies with a market capitalisation within the top 85% of their investable equity universe, subject to a global minimum size requirement. It is based on the Global Investable Market Indices methodology. As an addition, this Index will be weighted and rebalanced in accordance with MSCI's 10/40 Index Methodology, which is subject to the UCITS requirements.
Reason for the change of benchmark index
iShares is committed to continually enhance its existing product suite.
The change to the benchmark index is being made to reduce tracking error and therefore improve the ability of the Fund to achieve its investment objective. The current benchmark index constituent weightings cannot currently be fully replicated by the Fund without breaching the UCITS spread limits. As MSCI EM Latin America 10/40 Index operates using the MSCI UCITS compliant 10/40 index methodology, this will enable the Fund to replicate the index more closely whilst ensuring compliance with the UCITS spread limits.
You are not required to do anything as a result of this notification.
Please contact info@ishares.com if you have any queries concerning the changes to the Fund.
Yours faithfully
____________________
Director
for and on behalf of iShares II plc