IMPORTANT: Investment involves risk, including the loss of principal. Investors should refer to the Prospectus and Key Facts Statement of the iShares Core MSCI AC Asia ex Japan Index ETF (the “ETF”) for details, including the risk factors. Investors should not base investment decisions on this marketing material alone. Investors should note:
• The ETF aims to provide investment results that, before fees and expenses, closely correspond to the performance of the MSCI All Country Asia Ex Japan Index. The exposure of the ETF is concentrated in the Asian market and may be more volatile than funds adopting a more geographically diversified strategy.
• The ETF is subject to tracking error risk, which is the risk that its performance may not track that of the underlying index exactly.
• The ETF invests in emerging market countries in Asia. Investments in emerging markets are generally subject to a greater risk of loss than investments in a developed market.
• The ETF invests in stocks of large to mid-capitalisation companies. Stocks of mid-capitalisation companies may have lower liquidity and higher volatility compared to stocks of larger capitalisation companies.
• The ETF may invest in other iShares ETFs which provide exposure to Indian securities to track the performance of Indian constituents of the Index, and in other ETFs for cash management and contingency purposes. Conflicts of interest may arise if the Manager also acts as manager of the other ETFs invested by the ETF. There is also no guarantee these ETFs which the ETF invests will achieve their respective investment objectives and any tracking error of these ETFs and difference of the underlying constituents will contribute to the tracking error of the ETF.
• The ETF’s Base Currency is in USD but has units traded in HKD and RMB (in addition to USD). Investors may be subject to additional costs or losses associated with foreign currency fluctuations between the Base Currency and the RMB or HKD trading currency when trading units in the secondary market.
• RMB is currently not freely convertible and is subject to exchange controls and restrictions. Non-RMB based investors are exposed to foreign exchange risk on RMB-denominated investments.
• If there is a suspension of the inter-counter transfer of units between the counters and/or any limitation on the level of services provided by brokers and CCASS participants, Unitholders will only be able to trade their units in one counter. The market price of units traded in each counter may deviate significantly.
• The Manager may at its discretion pay dividends out of the capital of the ETF. Payment of dividends out of capital amounts to a return or withdrawal of part of an investor's original investment or from any capital gains attributable to that original investment. Any distributions involving payment of dividends out of the ETF’s capital may result in an immediate reduction of the Net Asset Value (“NAV”) per Unit.
• Trading prices on the SEHK is subject to market forces and may trade at a substantial premium or discount to the NAV.
• The Fund may use derivatives for hedging and for investment purposes. However, usage for investment purposes will not be extensive. The Fund may suffer losses from its derivatives usage.