ISHARES II PLC USD FLOATING RATE BOND UCITS ETF USD ACC

Objectives and Approach

The Share Class is a share class of a Fund which aims to achieve a return on your investment, through a combination of capital growth and income on the Fund’s assets, which reflects the return of the Bloomberg Barclays US Floating Rate Note 5 Years Index, the Fund’s benchmark index (Index). The Share Class, via the Fund, is passively managed and aims to invest so far as possible and practicable in the equity securities (e.g. shares) that make up the Index. The Index measures the performance of US Dollar-denominated FI securities issued globally by corporate and government-related issuers that pay income according to a floating rate of interest. The Index includes only FI securities that: (i) are SEC-registered securities, bonds exempt from registration at time of issuance, or SEC Rule 144A securities with or without registration rights; (ii) are rated investment grade, taking the middle rating given by Fitch, Moody’s and Standard & Poor’s Ratings Services (or, in the absence of such explicit bond ratings, using other sources, such as the index provider’s internal ratings); (iii) have at least US$300 million outstanding per individual bond; and (iv) have a remaining maturity (i.e. the time from issue until they become due for repayment) of greater than or equal to one month, but less than five years. The Fund uses optimising techniques to achieve a similar return to its Index. These may include the strategic selection of certain securities that make up the Index or other FI securities which provide similar performance to certain constituent securities. These may also include the use of financial derivative instruments (FDIs) (i.e. investments the prices of which are based on one or more underlying assets). FDIs may be used for direct investment purposes. The use of FDIs is expected to be limited for this Share Class. The Fund may also engage in short-term secured lending of its investments to certain eligible third parties to generate additional income to off-set the costs of the Fund. Recommendation: This Fund is suitable for medium to long term investment, though the Fund may also be suitable for shorter term exposure to the Index. Your shares will be distributing shares (i.e. income will be paid on the shares semi-annually).