Barclays Global Investors Announces the Expense Ratios of Pending iShares Subsector Funds; Expense Ratios of Existing Sector Funds Reduced By Up To 26%.SAN FRANCISCO San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden -- 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 ) today submitted to the U.S. Securities and Exchange Commission a filing for ten iShares Dow Jones Dow Jones the best known of several U.S. indexes of movements in price on Wall Street. [Am. Hist.: Payton, 202] See : Finance Subsector Index Funds that states that the Funds' annual expense ratios will be set at 0.48%. The Funds are expected to be publicly available sometime in May 2006. The iShares Dow Jones Subsector Funds would further solidify BGI's position as the largest provider of sector exchange traded funds Exchange Traded Funds (ETF) Also known as ETF. A basket of stocks similar to an index mutual fund. However, there are a number of important differences between ETFs and mutual funds. (ETFs). Today there exist 25 iShares sector funds, including five iShares global sector ETFs - the only global sector ETFs available in the U.S. As of April 13, 2006, iShares sector funds had $16 billion in total assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. . The iShares Funds have announced the lowering of the annual expense ratios of the 25 iShares sector funds to 0.48% effective May 1, 2006. In light of the anticipated expansion of the iShares' suite of sector funds, this new pricing better aligns with iShares' value proposition. No action is needed by current shareholders. (See Addendum addendum n. an addition to a completed written document. Most commonly this is a proposed change or explanation (such as a list of goods to be included) in a contract, or some point that has been subject of negotiation after the contract was originally proposed by for list of funds and pricing details.) "Barclays Global Investors is excited to announce this pricing for our funds," 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 Intermediary and ETF ETF See Exchange Traded Fund. ETF See exchange-traded fund (ETF). Business. "BGI is a premier manager of assets in the institutional arena, and we deliver that same expertise and experience through the iShares offering. As the world's leading provider of ETFs, we're committed to offering investors a compelling value proposition, which is achieved by balancing competitive pricing with the ETF industry's widest array of products and services. "The anticipated expanded sector offering, combined with the new pricing, allows us to continue to be the leading consultative resource to financial advisors and investors through our call center, sales support, portfolio and web tools, research, and ongoing educational programs." The iShares Funds include 101 exchange traded funds with over $196 billion in total assets under management as of April 13, 2006. So far this year, $14 billion in net cash has been invested in iShares Funds. The iShares Funds are index funds that are bought and sold like common stocks on securities exchanges. The iShares Funds are attractive to many individual and institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. and financial intermediaries Financial intermediaries institution that provide the market function of matching borrowers and lenders or traders. because of their relative 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. . Carefully consider the funds' investment objectives, risk factors and charges and expenses before investing. This and other information can be found in the funds' prospectuses, which may be obtained by calling 1-800-iShares or by visiting www.ishares.com. Read the prospectus carefully before investing. Barclays Global Investors is one of the world's largest asset managers(1) providing structured investment strategies such as risk-controlled active strategies and indexing. In the U.S., BGI is one of the largest active managers(2), set apart by its risk-controlled approach. BGI manages 65% of the world's 100 largest pension plans(3) and is the global leader in assets and products in exchange traded funds through its iShares(R) brand with more than 140 ETFs. BGI, together with its worldwide asset management affiliates, managed over $1.5 trillion in assets as of 12/31/05, for more than 2,800 clients in 52 countries around the world. BGI is a majority-owned subsidiary majority-owned subsidiary A firm in which more than 50% of outstanding voting stock is owned by the parent company. of Barclays Bank PLC. There are risks involved with investing, including possible loss of principal. Transactions in shares of the iShares Funds will result in brokerage commissions and will generate tax consequences. Mutual funds and iShares Funds are obliged o·blige v. o·bliged, o·blig·ing, o·blig·es v.tr. 1. To constrain by physical, legal, social, or moral means. 2. to distribute portfolio gains to shareholders. Shares of the iShares Funds may be sold throughout the day on the exchange through any brokerage account. However, shares may only be redeemed directly from a Fund by Authorized Participants Authorized Participant An entity chosen by an exchange-traded fund's sponsor to undertake the responsibility of obtaining the underlying assets needed to create an ETF. Authorized participants are typically large institutional organizations, such as market makers or specialists. , in very large creation/redemption units. The iShares Funds ("Funds") 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 the Funds. 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 the Funds. BGFA and BGIS are subsidiaries of Barclays Global Investors, N.A., which is a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Barclays Bank PLC, none of which is affiliated with SEI. The iShares Funds are not sponsored, endorsed, or issued by Goldman, Sachs & Co., nor are they sponsored, endorsed, issued, sold or promoted by Cohen cohen or kohen (Hebrew: “priest”) Jewish priest descended from Zadok (a descendant of Aaron), priest at the First Temple of Jerusalem. The biblical priesthood was hereditary and male. & Steers Capital Management, Inc., Dow Jones & Company, Inc., The NASDAQ Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. , Inc., or Standard and Poor's Noun 1. Standard and Poor's - a broadly based stock market index Standard and Poor's Index . None of these companies make any representation regarding the advisability of investing in the Funds. Neither SEI nor BGI, nor any of their affiliates, are affiliated with the companies listed above. "Goldman Sachs The Goldman Sachs Group, Inc., or simply Goldman Sachs (NYSE: GS) is one of the world's largest global investment banks. Goldman Sachs was founded in 1869, and is headquartered in the Lower Manhattan area of New York City at 85 Broad Street. (R)" is a registered trademark of Goldman, Sachs & Co. (C) 2006 Barclays Global Investors. All rights reserved. iShares(R) is a registered trademark of Barclays Global Investors, N.A. All other trademarks, servicemarks or registered trademarks are the property of their respective owners. (1)Source: "P&I/Watson Wyatt World 500," Pensions & Investments, September 5, 2005. (2)Source: "Special Reports: Money Manager Directory," Pensions & Investments, May 30, 2005. (3)Source: "P&I/Watson Wyatt World's 250 Largest Retirement Plans," Pensions & Investments, December 27, 2004.
ADDENDUM
iShares Sector Funds Old New
Expense Expense
Ratio Ratio
Effective
5/1
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iShares Dow Jones U.S. Basic Materials Sector 0.60% 0.48%
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iShares Dow Jones U.S. Consumer Services Sector 0.60% 0.48%
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iShares Dow Jones U.S. Consumer Goods Sector 0.60% 0.48%
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iShares Dow Jones U.S. Energy Sector 0.60% 0.48%
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iShares Dow Jones U.S. Financial Sector 0.60% 0.48%
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iShares Dow Jones U.S. Financial Services Sector 0.60% 0.48%
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iShares Dow Jones U.S. Healthcare Sector 0.60% 0.48%
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iShares Dow Jones U.S. Industrial Sector 0.60% 0.48%
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iShares Dow Jones U.S. Real Estate 0.60% 0.48%
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iShares Dow Jones U.S. Technology Sector 0.60% 0.48%
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iShares Dow Jones U.S. Telecommunications Sector 0.60% 0.48%
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iShares Dow Jones U.S. Transportation Sector 0.60% 0.48%
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iShares Dow Jones U.S. Utilities Sector 0.60% 0.48%
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iShares Goldman Sachs Natural Resources 0.50% 0.48%
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iShares Goldman Sachs Networking 0.50% 0.48%
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iShares Goldman Sachs Semiconductor 0.50% 0.48%
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iShares Goldman Sachs Software 0.50% 0.48%
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iShares Goldman Sachs Technology 0.50% 0.48%
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iShares S&P Global Energy Sector 0.65% 0.48%
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iShares S&P Global Financials Sector 0.65% 0.48%
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iShares S&P Global Healthcare Sector 0.65% 0.48%
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iShares S&P Global Technology Sector 0.65% 0.48%
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iShares S&P Global Telecommunications Sector 0.65% 0.48%
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iShares Nasdaq Biotechnology 0.50% 0.48%
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