SAN FRANCISCO, April 14, 2011 /PRNewswire/ -- BlackRock, Inc. (NYSE: BLK) today announced that its iShares® Exchange Traded Funds (ETFs) business, the world's largest manager of ETFs, has published a fact sheet on tax efficiency and created a video to drive awareness among U.S. investors about ETFs' tax efficiency as the U.S. tax filing deadline approaches. Today, there are over 1,000 different ETFs available and iShares is emphasizing tax efficiency during the current tax season to foster understanding and to encourage investors to take a careful examination of products with tax consequences in mind.
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In April, investors should be keenly aware of the tax ramifications on their investments, some of which may cause a drag on performance and produce an obstacle to realizing their identified financial goals. To compound the issue, many investment strategists believe we are now in a lower return market environment, where the impact of taxes on a portfolio may be further magnified.
Kevin Feldman, iShares Managing Director at BlackRock, said, "Tax season is a time where investors have a heightened awareness about the impact taxes have on their investments. ETFs inherently offer tax efficiency through their unique structure, but it is important to note not all ETFs are equally tax efficient. As the federal filing deadline passes, we want to ensure investors are educated on the long-term impact of taxes and have the knowledge to choose wisely."
This is the latest phase of the iShares ETF educational campaign that previously included the comprehensive "ETF Checklist" that was released in November 2010, with the intent of helping investors select the right ETFs for their goals. The iShares tax efficiency fact sheet underscores the impact of taxes on returns, how ETFs can offer important tax benefits, the significance of a manager's track record in delivering tax efficiency, and why ETF structure matters when evaluating tax efficiency.
iShares ongoing educational campaign is designed to produce reference materials that will serve as a valuable resource for investors as they evaluate ETFs for selection. iShares is committed to deepening investors' understanding of these important factors in 2011. The "Tax Efficiency Fact Sheet" and "ETF Checklist" are available on iShares.com along with a wealth of educational materials.
BlackRock is a leader in investment management, risk management and advisory services for institutional and retail clients worldwide. At December 31, 2010, BlackRock's AUM was $3.561 trillion. BlackRock offers products that span the risk spectrum to meet clients' needs, including active, enhanced and index strategies across markets and asset classes. Products are offered in a variety of structures including separate accounts, mutual funds, iShares® (exchange traded funds), and other pooled investment vehicles. BlackRock also offers risk management, advisory and enterprise investment system services to a broad base of institutional investors through BlackRock Solutions®. Headquartered in New York City, as of December 31, 2010, the firm has approximately 9,100 employees in 25 countries and a major presence in key global markets, including North and South America, Europe, Asia, Australia and the Middle East and Africa. For additional information, please visit the Company's website at www.blackrock.com.
iShares is the global product leader in exchange traded funds with over 460 funds globally across equities, fixed income and commodities, which trade on 19 exchanges worldwide. The iShares Funds are bought and sold like common stocks on securities exchanges. The iShares Funds are attractive to many individual and institutional investors and financial intermediaries 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. The iShares customer base consists of the institutional segment of pension plans and fund managers, as well as the retail segment of financial advisors and high net worth individuals.
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 (1-800-474-2737) or by visiting www.iShares.com. Read the prospectus carefully before investing.
Investing involves risk, including possible loss of principal.
ETFs are obliged to distribute portfolio gains to shareholders by year-end. These gains may be generated due to index rebalancing or to meet diversification requirements. Trading shares of ETFs will also generate tax consequences and transaction expenses.
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, in very large creation/redemption units.
The iShares Funds ("Funds") are distributed by SEI Investments Distribution Co. ("SEI"). BlackRock Fund Advisors ("BFA") serves as the investment advisor to the Funds. BlackRock Fund Distribution Company ("BFDC") assists in the marketing of the Funds. BFA and BFDC are affiliates of BlackRock, Inc., none of which is affiliated with SEI.
Neither BlackRock, Inc., and its affiliates nor SEI and its affiliates provide tax advice. Please note that (i) any discussion of U.S. tax matters contained in this communication cannot be used by you for the purpose of avoiding tax penalties; (ii) this communication was written to support the promotion or marketing of the matters addressed herein; and (iii) you should seek advice based on your particular circumstances from an independent tax advisor.
© 2011 BlackRock Institutional Trust Company, N.A. iShares® is a registered trademark of BlackRock Institutional Trust Company, N.A. All other trademarks, servicemarks or registered trademarks are the property of their respective owners.
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