Barclays Global Investors Continues Expansion of the Largest Worldwide Marketplace of Exchange Traded Funds; New iShares for all of Europe in one investment.Business Editors SAN FRANCISCO--(BUSINESS WIRE)--July 27, 2000 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 ), manager of the most 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. in the world, and one of the world's largest investment managers, announced today the continued expansion of iShares exchange traded funds for individuals, financial intermediaries Financial intermediaries institution that provide the market function of matching borrowers and lenders or traders. , and institutions. iShares have attracted over US $2.6 billion since this expansion began in May. Tomorrow, the third wave of iShares will launch, bringing the total number of iShares to 56. iShares launching tommorrow are: Fund Ticker Expense Ratio iShares S&P Europe 350 IEV 0.60% iShares S&P Small Cap 600/BARRA Value IJS 0.25% iShares S&P Small Cap 600/BARRA Growth IJT 0.25% iShares S&P Mid Cap 400/BARRA Value IJJ 0.25% iShares S&P Mid Cap 400/BARRA Growth IJK 0.25% iShares Russell 3000 Value IWW 0.25% iShares Russell 3000 Growth IWZ 0.25% iShares Russell 2000 Value IWN 0.25% iShares Russell 2000 Growth IWO 0.25% iShares MSCI EMU EZU 0.84% For a full list of the 56 currently available iShares exchange traded funds, visit www.ishares.com. "We introduced iShares as a comprehensive offering of asset allocation Asset Allocation The process of dividing a portfolio among major asset categories such as bonds, stocks or cash. The purpose of asset allocation is to reduce risk by diversifying the portfolio. tools, providing investors the largest marketplace of exchange traded funds in the world. BGI now offers a greater selection of exchange traded funds tracking popular indexes, many not currently available in the entire universe of traditional mutual 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 Individual Investor business. "This is the first opportunity for investors to buy an exchange traded fund Exchange Traded Fund Similar to an index mutual fund, these tracking stocks trade continuously. Two popular ETFs are the Standard and Poor's depositary receipt (SPDR) launched in 1993 and the NASDAQ-100 Index Tracking Stock (QQQ) which was launched in 1999. based on all of the largest companies of Europe, with both the iShares S&P Europe 350 and the iShares MSCI EMU Index Fund." iShares (www.ishares.com) are 40 Act funds that are bought and sold like common stocks on a national securities exchange. This flexibility enables investors to 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. . Similar to many index funds, iShares are designed to have relatively low portfolio turnover, which reduces transaction costs Transaction Costs Costs incurred when buying or selling securities. These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price they can sell it). incurred by the Fund and minimizes capital gains distributions to investors. iShares also offer the broad diversification of index investing, and institutional-quality investment management from the world's largest manager of index funds(1). Similar to common stocks, iShares can be traded anytime during normal market hours, and priced intra-day so investors know the value of their investments. iShares are managed by 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 "), a subsidiary of Barclays Global Investors. BGFA has been managing exchange traded funds since 1996, with the introduction of WEBS (World Equity Benchmark Shares), and now provides investors with 20 foreign country index portfolios tracking the indexes of Morgan Stanley Capital International Morgan Stanley Capital International (MSCI) This firm publishes a number of well known benchmarks, such as the MSCI World Index. (MSCI). The WEBS funds have been re-named "iShares MSCI Index Funds". The "iShares MSCI Index Funds" reflect the indexes tracked and the consistent brand name for all exchange traded funds managed by BGI. The iShares MSCI Index funds may provide a cost-effective way for U.S. investors to gain exposure to foreign countries and regions not served by most closed-end funds or traditional mutual funds. Even though closed end funds and traditional mutual funds offer opportunities to invest in international markets, the iShares MSCI advantage is a much broader offering of country specific and international composite index Composite Index A grouping of equities, indexes or other factors combined in a standardized way, providing a useful statistical measure of overall market or sector performance over time. Also known simply as a "composite". investment opportunities. Barclays Global Investors is the world's largest institutional investment manager(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 strategies(1). BGI managed more than $825 billion in assets as of 3/31/00, and over 1,500 funds, which track over 200 global indexes, for over 1,600 clients in 34 countries around the world as of 3/31/00. As the creator of the first index strategy more than 26 years ago, BGI is truly an innovator in investment management, applying science and technology to the investment process. BGI has over 1,800 employees worldwide and is owned by Barclays PLC, one of the UK's largest companies, and one of the world's leading global financial services providers, with operations in about 70 countries worldwide. MSCI is a leading provider of global indices and benchmark related products and services to investors worldwide. MSCI's products are used by investment managers, consultants, academics, broker-dealers and other investment professionals worldwide. Morgan Stanley Dean Witter & Co. is the majority shareholder in MSCI and The Capital Group Companies Inc. is the minority shareholder. MSCI, Morgan Stanley Capital International, and MSCI Index are service marks of Morgan Stanley Capital International Inc. and have been licensed for use by Barclays Global Investors, N.A. The Funds are not sponsored, endorsed, sold or promoted by Morgan Stanley Capital International. Nor does Morgan Stanley Capital International make any representation regarding the advisability of investing in any of the Funds. iShares are distributed by SEI Investments Distribution Company and are listed 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. . Barclays Global Fund Advisors serves as the investment adviser to iShares and is a subsidiary of Barclays Global Investors N.A., neither of which are affiliated with SEI. For more complete information, including charges and expenses, request a prospectus by calling your financial advisor or 1-800-iSHARES (1-800-474-2737). Please read it carefully before you invest or send money. The investment return and principal value of an iShares investment will fluctuate so that an investor's shares, when sold, or Creation Unit(s) when redeemed, may be worth more or less than their original cost. Although iShares may be bought or sold through any brokerage account, iShares are not individually redeemable from the Funds. Investors may acquire iShares and tender iShares for redemption through the Fund in Creation Unit aggregations only. All regulated investment companies Regulated investment company An investment company allowed to pass capital gains, dividends, and interest earned on fund investments directly to its shareholders so that it is taxed only at the personal level, and double taxation is avoided. , including iShares, are obliged to distribute portfolio gains to shareholders at year's end. Trading iShares will also generate tax consequences and transaction expenses. In addition to the normal risks associated with equity investing and international investing, investments in emerging markets or concentrated in a single country are subject to greater risk of loss and volatility. International investments may involve risk of capital loss from unfavorable fluctuations in currency values, from differences in generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting or from economic or political instability in other nations. iShares are Not FDIC FDIC See: Federal Deposit Insurance Corporation FDIC See Federal Deposit Insurance Corporation (FDIC). Insured. Have No Bank Guarantee. May Lose Value. 1 Source: By AUM Aum (ä·ōōmˑ), n.pr 1. in Ayurveda, the subtle, noiseless cosmic vibration in which consciousness existed in the beginning, before the elements appeared. , "Largest Index Fund Managers survey," Pensions & Investments, February 2000 2 Source: BY AUM, "Money Manager's Survey," Pensions & Investments, July 2000 |
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