Ishr Stx Eu 50 Regulatory News (EUN)

16 Feb 2005 07:00

European Exchange-Traded Fnd Co.PLC15 February 2005 For immediate release 16 February 2005 European Exchange-Traded Fund Company PLC Reduction in Effective Total Expense Ratio ("Effective TER") on iShares DJ Euro STOXX 50 The Board of Directors of European Exchange-Traded Fund Company PLC todayannounces a reduction in the effective TER for investors in its iShares DJ EuroSTOXX 50 (the "Fund"). The effective TER will now be capped at 0.15%, which is 0.10% below the currenteffective TER of 0.25%. This change will take place immediately and will bevoluntarily maintained for two years, at which point it will be reviewed. Effective TER is defined as the net of the Fund's management fee (0.35%) andsecurities lending income received by the Fund. For a period of two years from16 February 2005, the Board of Directors and the Investment Manager (BarclaysGlobal Investors Limited) have agreed that this amount will be capped at 0.15%. While investors have historically benefited from securities lending income, thisnew arrangement formally caps the effective TER at 0.20% below the currentmanagement fee of 0.35%. If sufficient income from securities lending is notearned by the Fund, Barclays Global Investors Limited will reimburse the Funddirectly to ensure that the effective TER is maintained at 0.15% per annum. The iShares DJ Euro STOXX 50 is the second largest ETF in Europe, with $3.2billion under management (Morgan Stanley - Exchange Traded Funds - Year EndReview 2004). The iShares DJ Euro STOXX 50 is listed on the London Stock Exchange, BorsaItaliana, Euronext Amsterdam, Euronext Paris, Frankfurt Stock Exchange, IrishStock Exchange, virt-X and SWX exchanges and is registered for sale in theUnited Kingdom, Italy, the Netherlands, France, Germany, Ireland, Switzerland,Austria and Luxembourg. Enquiries: Barclays Global Investors Limited +44 (0)20 7668 8597 END This announcement has been issued through the Companies Announcement Service of The Irish Stock Exchange This information is provided by RNS The company news service from the London Stock Exchange