Barclays Global Investors Announces Launch Date and Expense Ratios of First U.S.-Listed Fixed Income Exchange-Traded Funds.Business Editors Barclays Global Investors Barclays Global Investors is a subsidiary of British-based Barclays Bank which is in the investment management industry. It is the largest corporate money manager in the world, with over £936 billion (US$1.77 trillion) under management as of March 2006[1]. (BGI BGI Barclays Global Investors BGI Bainbridge Graduate Institute BGI Bureau Gravimétrique International BGI Borland Graphic Interface (File Name Extension) BGI Bridgetown, Barbados - Grantley Adams International ) announced today that four iShares bond ETFs are scheduled to begin trading on the American Stock Exchange American Stock Exchange (AMEX) Stock exchange in the U.S. Originally known as “the Curb,” it began as an outdoor marketplace in New York City c. 1850. It moved indoors to its present location in the Wall Street area in 1921. on July 26, 2002, and the funds' expense ratios will be 0.15%, beating the average expense ratio of 0.39% of bond index mutual funds(1). The four funds are: 1. iShares Lehman 1-3 Year Treasury Bond Fund (ticker: SHY) 2. iShares Lehman 7-10 Year Treasury Bond Fund (ticker: IEF (Information Engineering Facility) A fully integrated set of CASE tools from Sterling Software that runs on PCs and MVS mainframes. It generates COBOL code for PCs, MVS mainframes, VMS, Tandem, AIX, HP-UX and other Unix platforms. ) 3. iShares Lehman 20+ Year Treasury Bond Fund (ticker: TLT TLT Tilt TLT The Literary Times TLT Teaching, Learning & Technology TLT The Last Temptation (music album) TLT Transmission Line Transformer TLT The Little Theatre TLT Test Loop Translator TLT Trails Less Traveled ) 4. iShares GS $ InvesTop(TM) Corporate Bond Fund (ticker: LQD LQD Low-Q Diffractometer ) The regulatory comment period ended Monday and the Securities and Exchange Commission issued an order yesterday permitting the operation of seven iShares bond ETFs. The remaining three funds (the iShares Lehman Treasury Bond Fund, iShares Lehman Government/Credit Bond Fund, and the iShares Lehman Credit Bond Fund) are expected to be available at a later date. "iShares bond ETFs offer investors one of the best value propositions among bond investments today," said Lee Kranefuss, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of BGI's Individual Investor Business. "The fact is that the range of potential returns of bond funds is narrower than the range of potential returns of stock funds. By providing low expense ratios, investors in iShares bond ETFs will have more capital working for them." He added, "Fixed income iShares will also allow individual investors to see for the first time intra-day pricing of groups of bonds that have similar maturities or quality. Unlike stocks where prices are widely disseminated, the fair market value of bonds that trade on the secondary market is difficult for individual investors to access." iShares are index funds that are bought and sold like common stocks on securities exchanges. iShares are attractive to many individual and institutional investors and financial intermediaries Financial intermediaries institution that provide the market function of matching borrowers and lenders or traders. because of their relatively low cost, tax efficiency and trading flexibility. Investors can purchase and sell shares through any brokerage firm, financial advisor, or online broker, and hold the funds in any type of brokerage account Brokerage Account An arrangement between an investor and a licensed brokerage firm that allows the investor to deposit funds with the firm and place investment orders through the brokerage, which then carries out the transactions on the investor's behalf. . For a list of currently available iShares, visit www.ishares.com. Barclays Global Investors is one of the world's largest asset managers(2), and the world's largest provider of structured investment strategies such as indexing, tactical asset allocation Tactical Asset Allocation (TAA) Portfolio strategy that allows active departures from the normal asset mix according to specified objective measures of value. Often called active management. It involves forecasting asset returns, volatilities, and correlations. , and quantitative active strategies3. BGI managed more than $790 billion in assets as of 3/31/02, and over 2,000 funds, which track over 250 global indexes, for nearly 2,000 clients in 41 countries around the world. BGI is owned by Barclays PLC. iShares are distributed by SEI Investments Distribution Co. (SEI). Barclays Global Fund Advisors (BGFA BGFA Barclays Global Fund Advisors BGFA Boston Globe Freelancers Association BGFA Barbados Game Fishing Association BGFA Belize Game Fishing Association BGFA Bulk Glass Forming Ability BGFA Berufsgenossenschaftliches Forschungsinstitut for Arbeitsmedizin ) serves as an advisor to iShares. Barclays Global Investors Services (BGIS BGIS Barclays Global Investors Services BGIS Business and Geographic Information Services (Unit; Illinois Institute for Rural Affairs) BGIS Bhaktivedanta Gurukula & International School (Vrindavan, India) ) assists in the marketing of iShares. BGFA and BGIS are subsidiaries of Barclays Global Investors, N.A., none of which is affiliated with SEI. For complete information, including charges and expenses, request a prospectus by calling 1-800-iSHARES (1-800-474-2737). Read it carefully before you invest. iShares transactions will result in brokerage commissions and will generate tax consequences. Mutual funds and iShares are obliged to distribute portfolio gains to shareholders. Investing involves risk, including possible loss of principal. iShares may be sold throughout the day at market value on stock exchanges through any brokerage account. However, iShares may only be redeemed directly from the fund by Authorized Participants, in very large Creation/Redemption Units. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation Federal Deposit Insurance Corporation (FDIC), an independent U.S. federal executive agency designed to promote public confidence in banks and to provide insurance coverage for bank deposits up to $100,000. or any other government agency. Some iShares may not yet be available; please consult your financial advisor. "InvesTop(TM) Index," "GS $ InvesTop(TM) Index," and "Goldman Sachs(R)" are trademarks of Goldman, Sachs & Co. and have been licensed for use by Barclays Global Investors, N.A. for use in connection with the Fund. The Fund is not sponsored or endorsed by Goldman, Sachs & Co. or any of its affiliates. Neither Goldman, Sachs & Co. nor any of its affiliates make any representation regarding the advisability of investing in the Fund. The methodology of the GS $ InvesTop(TM) Index is owned by Goldman, Sachs & Co., may be covered by one or more patents or pending patent applications and is provided under license from Goldman, Sachs & Co. Lehman Brothers, Lehman Brothers 1-3 Year Treasury Index, Lehman Brothers 7-10 Year Treasury Index, and Lehman Brothers 20+ Year Treasury Index, are trademarks of Lehman Brothers and have been licensed for use for certain purposes by BGI. The Funds that are based on the Lehman Brothers indices are not sponsored or endorsed by Lehman Brothers, and Lehman Brothers makes no representations regarding the advisability of investing in iShares. (1) Source: Morningstar data as of 4/30/02 from indexfunds.com (2) Source: "Special Report: Money Managers Directory," Pensions & Investments, May 27, 2002, p. 22. (3) Source: "Index Assets Grow 10% in First 6 Months of Year," Pensions & Investments, September 17, 2001, p. 20 and BGI internal data. |
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