iShares Composite Bond ETF
fact sheet as AT 31 DECEMBER 2015
iShares Composite Bond ETF was known prior to 29 September 2014 as iShares UBS Composite Bond ETF.
The iShares Composite Bond ETF (the “Fund”) aims to provide investors with the performance of the market, before fees and expenses,
as represented by the Bloomberg AusBond Composite IndexSM (the “Index”). The Fund invests primarily in investment grade fixed income
securities issued by the Australian Commonwealth Government, Australian State-Governments, Supranational and Sovereign agencies and
corporate debt issues that form the Index, and seeks to achieve its objective by employing an optimisation (stratified sampling) strategy to
track the performance of the Index.
The Bloomberg AusBond Composite IndexSM is designed to measure the performance of the Australian bond market which meets certain
investment criteria and covers fixed interest bonds issued in the Australian debt market under Australian law. The Bloomberg AusBond
Composite IndexSM, is an index of valuations of the debt securities which are included in it.
Cumulative Performance (A$)
Fundamentals & Risk
1 Mth (%)
3 Mth (%)
6 Mth (%)
Fund
0.32
-0.28
Index
0.33
-0.25
Weighted Average Term to Maturity4
5.56 years
1.88
Modified Duration5
4.66 years
1.95
Weighted Average Coupon6
Average Annualised Performance (A$)
4.73%
Fund Details
1 Yr (%)
3 Yr (%)
5 Yr (%)
10 Yr
(%)
Since
Inception (%)
ASX Listing Date
14 March 2012
Fund
2.42
4.56
N/A
N/A
5.46
Underlying Fund Inception Date
12 March 2012
Index
2.59
4.73
N/A
N/A
5.67
Management Fees and Expenses*
Past performance is not a reliable indicator of the future performance of the Index or the Fund.
Performance figures for the funds shown are calculated after fund management fees and
expenses, and assume reinvestment of distributions.
Credit Ratings1 as at 31 December 2015
72.66
AA Rated
18.72
A Rated
6.06
BBB Rated
2.48
Cash and Derivatives
0.08
0
10
20
30
40
50
60
70
80
Yield Information as at 31 December 2015
Average Yield to Maturity2
Distribution Frequency
Distribution Yield3
2.69%
Quarterly
3.62%
Yield Information is derived from a weighted average of the Fund’s current underlying
investments, not the Fund itself. Yield Information does not constitute the past returns
of the Fund itself, nor an estimate of the Fund’s future returns. Yield Information related
to the underlying instruments of the Fund is predictive in nature and may be affected by
unknown risks and uncertainties. Actual ongoing yields of the underlying instruments will
differ from estimated yields.
* As at 29 January 2016.
Fund Size AUD (000)
Number of Holdings
ISIN
An iShares fund is not actively managed. You cannot invest directly in an index.
AAA Rated
ASX Code
IAF
0.20%
$ 266,533
330
AU000000IAF5
Fund Sector Allocation
Treasury 46.09%
Government Related 41.61%
Corporates 11.06%
Covered 1.16%
Cash and Derivatives 0.08%
For more information
Top Ten Fund Holdings*
(%)
Coupon Maturity
Date
(%)
Weighting
(%)
AUSTRALIA (COMMONWEALTH OF)
3.25
4/21/2025
3.07%
AUSTRALIA (COMMONWEALTH OF)
5.75
5/15/2021
3.04%
AUSTRALIA (COMMONWEALTH OF)
5.50
4/21/2023
3.00%
AUSTRALIA (COMMONWEALTH OF) RegS
4.75
4/21/2027
2.96%
AUSTRALIA (COMMONWEALTH OF)
2.75
4/21/2024
2.91%
AUSTRALIA (COMMONWEALTH OF) RegS
4.25
4/21/2026
2.87%
AUSTRALIA (COMMONWEALTH OF)
5.25
3/15/2019
2.87%
AUSTRALIA (COMMONWEALTH OF)
5.75
7/15/2022
2.79%
AUSTRALIA (COMMONWEALTH OF)
4.50
4/15/2020
2.75%
AUSTRALIA (COMMONWEALTH OF)
6.00
2/15/2017
2.67%
Holdings are identified by issuer, coupon and maturity date. The maturity date is in US
date format MM/DD/YYYY.
Visit our website at iShares.com.au
Call 1300 474 273
Contact your investment adviser
1. Credit ratings
Credit ratings are forward-looking opinions about credit risk based on the ability and willingness of an issuer, such as a corporation or government, to meet their financial
obligations in full and on time. This measure looks at ratings provided by the rating agencies Moody’s and Standard and Poor’s (S&P). The Average Credit Rating is calculated
as the average of the underlying bonds’ credit rating weighted by the bonds’ weight in the fund.
2. Yield to maturity
Yield to Maturity is the rate of return anticipated on a bond if it is held until maturity. The Yield to Maturity of iShares fixed income products is calculated as the average of
the underlying bonds ‘Yield to Maturity weighted by the bonds’ weight in the product. It takes into account both return received for the coupon payment and return from the
price appreciation or depreciation of the bonds inside the product. For iShares fixed income products Yield to Maturity is an indicative measure only, as in many of the iShares
products underlying bonds are not held until maturity. Yield to Maturity can also be referred to as Gross Redemption Yield.
3. Distribution yield
The distribution yield is are calculated by summing the prior 12 month net fund per unit distributions respectively, then dividing by the fund closing unit NAV.
4. Weighted average term to maturity
A Bond’s maturity is the length of time until the date when the principal amount of a bond is to be repaid. The Weighted Average Term to Maturity is used as a measure of the
maturity of a basket of bonds (in the fund) and is calculated as the average of the underlying bonds’ maturities weighted by the bonds’ weight in the fund.
5. Modified duration
Modified duration is a measure of price sensitivity of a bond to changes in interest rates. It inversely indicates the expected change in the price of a bond assuming a 1%
change in yield. The Modified Duration of iShares fixed income products is calculated as the average of the underlying bonds Modified Duration values weighted by the bonds
weight in the product.
6. Weighted average coupon
The coupon is the annual interest rate paid by a bond issuer on the face value of the bond. Weighted Average Coupon is used to calculate the average coupon of a basket of
bonds (fund) and is calculated as the average of the underlying bonds coupon rates weighted by the bonds weight in the fund.
IMPORTANT INFORMATION
Before investing in an iShares exchange traded fund, you should carefully consider whether such products are appropriate for you, read the applicable
prospectus or product disclosure statement (“PDS”) available at www.blackrock.com.au and consult an investment adviser.
This document is issued by BlackRock Investment Management (Australia) Limited ABN 13 006 165 975 AFSL 230 523 (BIMAL).
This document provides general information only and has not been prepared having regard to your objectives, financial situation or needs. Before making an investment decision,
you need to consider whether this information is appropriate to your objectives, financial situation and needs. Any potential investor should consider the latest disclosure
document or PDS in deciding whether to acquire, or to continue to hold, an investment in any BlackRock fund.
This document is not a securities recommendation nor is it an offer or solicitation with respect to the purchase or sale of any securities in any jurisdiction.
BIMAL is the responsible entity and issuer of the Australian domiciled managed investment scheme iShares funds quoted on ASX. BIMAL is the local agent and intermediary for
iShares funds issued by iShares, Inc. ARBN 125632 279 formed in Maryland, USA; iShares Trust ARBN 125 632 411 organised in Delaware, USA. The liability of shareholders
is limited. BlackRock Fund Advisors (BFA) serves as an advisor to the iShares funds that are registered with the United States Securities and Exchange Commission under the
Investment Company Act of 1940. BFA is a subsidiary of BlackRock Institutional Trust Company, N.A (BTC). BTC is a wholly-owned subsidiary of BlackRock, Trades on ASX in the
shares of an international iShares fund are settled using CHESS Depositary Interests (or CDIs).
An iShares fund is not sponsored, endorsed, issued, sold or promoted by the provider of the index which a particular iShares fund seeks to track. No index provider makes any
representation regarding the advisability of investing in the iShares funds. Further information on the index providers can be found on BIMAL’s website terms and conditions.
BIMAL, its officers, employees and agents believe that the information in this document and the sources on which the information is based (which may be sourced from third
parties) are correct as at the date of publication. While every care has been taken in the preparation of this document, no warranty of accuracy or reliability is given and no
responsibility for this information is accepted by BIMAL, its officers, employees or agents. Except where contrary to law, BIMAL excludes all liability for this information.
Any investment is subject to investment risk, including delays on the payment of withdrawal proceeds and the loss of income or the principal invested. While any forecasts,
estimates and opinions in this document are made on a reasonable basis, actual future results and operations may differ materially from the forecasts, estimates and opinions
set out in this document. BIMAL does not guarantee the repayment of capital or the performance of any product or rate of return referred to in this document. Past performance
is not a reliable indicator of future performance.
No part of this document may be reproduced or distributed in any manner without the prior written permission of BIMAL.
© 2016 BlackRock, Inc. All Rights reserved. BLACKROCK, iSHARES and the stylized i logo are registered and unregistered trademarks of BlackRock, Inc. or its subsidiaries in
the United States and elsewhere. All other trademarks are those of their respective owners.