0001193125-12-372138.txt : 20120829 0001193125-12-372138.hdr.sgml : 20120829 20120828173956 ACCESSION NUMBER: 0001193125-12-372138 CONFORMED SUBMISSION TYPE: 485BPOS PUBLIC DOCUMENT COUNT: 8 FILED AS OF DATE: 20120829 DATE AS OF CHANGE: 20120828 EFFECTIVENESS DATE: 20120829 FILER: COMPANY DATA: COMPANY CONFORMED NAME: iSHARES INC CENTRAL INDEX KEY: 0000930667 IRS NUMBER: 510396525 STATE OF INCORPORATION: MD FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: 485BPOS SEC ACT: 1933 Act SEC FILE NUMBER: 033-97598 FILM NUMBER: 121060926 BUSINESS ADDRESS: STREET 1: 400 HOWARD STREET CITY: SAN FRANCISCO STATE: CA ZIP: 94105 BUSINESS PHONE: (415) 670-2000 MAIL ADDRESS: STREET 1: 400 HOWARD STREET CITY: SAN FRANCISCO STATE: CA ZIP: 94105 FORMER COMPANY: FORMER CONFORMED NAME: ISHARES INC DATE OF NAME CHANGE: 20000516 FORMER COMPANY: FORMER CONFORMED NAME: WEBS INDEX FUND INC DATE OF NAME CHANGE: 19970211 FORMER COMPANY: FORMER CONFORMED NAME: FOREIGN FUND INC DATE OF NAME CHANGE: 19950524 FILER: COMPANY DATA: COMPANY CONFORMED NAME: iSHARES INC CENTRAL INDEX KEY: 0000930667 IRS NUMBER: 510396525 STATE OF INCORPORATION: MD FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: 485BPOS SEC ACT: 1940 Act SEC FILE NUMBER: 811-09102 FILM NUMBER: 121060927 BUSINESS ADDRESS: STREET 1: 400 HOWARD STREET CITY: SAN FRANCISCO STATE: CA ZIP: 94105 BUSINESS PHONE: (415) 670-2000 MAIL ADDRESS: STREET 1: 400 HOWARD STREET CITY: SAN FRANCISCO STATE: CA ZIP: 94105 FORMER COMPANY: FORMER CONFORMED NAME: ISHARES INC DATE OF NAME CHANGE: 20000516 FORMER COMPANY: FORMER CONFORMED NAME: WEBS INDEX FUND INC DATE OF NAME CHANGE: 19970211 FORMER COMPANY: FORMER CONFORMED NAME: FOREIGN FUND INC DATE OF NAME CHANGE: 19950524 0000930667 S000037851 iShares Latin America Bond Fund C000116781 iShares Latin America Bond Fund 485BPOS 1 d395821d485bpos.htm FORM 485BPOS FOR ISHARES INC. WITH XBRL Form 485BPOS for iShares Inc. with XBRL

As filed with the U.S. Securities and Exchange Commission on August 29, 2012

Securities Act File No. 033-97598

Investment Company Act File No. 811-09102

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM N-1A

REGISTRATION STATEMENT

UNDER

THE SECURITIES ACT OF 1933   x
Pre-Effective Amendment No.   ¨
Post-Effective Amendment No. 252   x
and/or
REGISTRATION STATEMENT
UNDER
THE INVESTMENT COMPANY ACT OF 1940   x
Amendment No. 254   x

(Check appropriate box or boxes)

 

 

iShares, Inc.

(Exact Name of Registrant as Specified in Charter)

 

 

c/o State Street Bank and Trust Company

200 Clarendon Street

Boston, MA 02116

(Address of Principal Executive Office)(Zip Code)

Registrant’s Telephone Number, including Area Code (415) 670-2000

The Corporation Trust Incorporated

351 West Camden Street

Baltimore, MD 21201

(Name and Address of Agent for Service)

 

 

With Copies to:

 

MARGERY K. NEALE, ESQ.

 

WILLKIE FARR &

GALLAGHER LLP

 

787 SEVENTH AVENUE

NEW YORK, NY 10019-6099

 

BENJAMIN J. HASKIN, ESQ.

 

WILLKIE FARR &

GALLAGHER LLP

 

1875 K STREET, NW

WASHINGTON, D.C. 20006-1238

 

EDWARD BAER, ESQ.

 

BLACKROCK FUND

ADVISORS

 

400 HOWARD STREET

SAN FRANCISCO, CA 94105


 

Continuous

(August 29, 2012)

It is proposed that this filing will become effective:

  x immediately upon filing pursuant to paragraph (b)
  ¨ on (date) pursuant to paragraph (b)
  ¨ 60 days after filing pursuant to paragraph (a)(1)
  ¨ on (date) pursuant to paragraph (a)(1)
  ¨ 75 days after filing pursuant to paragraph (a)(2)
  ¨ on (date) pursuant to paragraph (a)(2) of Rule 485.

If appropriate, check the following box:

  ¨ This post-effective amendment designates a new effective date for a previously filed post-effective amendment.

This filing relates solely to the following Fund, a series of iShares, Inc.:

iShares Latin America Bond Fund


SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, as amended, and the Investment Company Act of 1940, as amended, the Registrant certifies that it meets all the requirements for the effectiveness of this Registration Statement pursuant to Rule 485(b) under the Securities Act of 1933, as amended, and has duly caused this Post-Effective Amendment No. 252 to the Registration Statement to be signed on its behalf by the undersigned, duly authorized, in the City of San Francisco and the State of California on the 29th day of August, 2012.

iSHARES, INC.

 

By:  

 

  Michael Latham*
  President and Director
Date:   August 29, 2012

Pursuant to the requirements of the Securities Act of 1933, as amended, this Post-Effective Amendment No. 252 to the Registration Statement has been signed below by the following persons in the capacities and on the date indicated.

 

By:  

 

  Michael Latham*
  President and Director
  Date: August 29, 2012
 

 

John E. Martinez*

  Director
  Date: August 29, 2012
 

 

George G.C. Parker*

  Director
  Date: August 29, 2012
 

 

Cecilia H. Herbert*

  Director
  Date: August 29, 2012
 

 

Charles A. Hurty*

  Director
  Date: August 29, 2012


 

 

John E. Kerrigan*

  Director
  Date: August 29, 2012
 

 

Robert H. Silver*

  Director
  Date: August 29, 2012
 

 

Robert S. Kapito*

  Director
  Date: August 29, 2012
 

 

Madhav V. Rajan*

  Director
  Date: August 29, 2012
 

/s/ Jack Gee

  Jack Gee
  Treasurer
  Date: August 29, 2012
*By:  

/s/ Jack Gee

  Jack Gee
  Attorney-in-fact
  Date: August 29, 2012

 

 

* Powers of Attorney, each dated December 6, 2011, for Michael A. Latham, Charles A. Hurty, Cecilia H. Herbert, John E. Kerrigan, Robert H. Silver, George G.C. Parker, John E. Martinez, Madhav V. Rajan and Robert S. Kapito are incorporated herein by reference to Post-Effective Amendment No. 221, filed March 15, 2012.


EXHIBIT INDEX

 

Index No.

  

Description of Exhibit

EX-101.INS    XBRL Instance Document
EX-101.SCH    XBRL Taxonomy Extension Schema Document
EX-101.CAL    XBRL Taxonomy Extension Calculation Linkbase
EX-101.DEF    XBRL Taxonomy Extension Definition Linkbase
EX-101.LAB    XBRL Taxonomy Extension Labels Linkbase
EX-101.PRE    XBRL Taxonomy Extension Presentation Linkbase
EX-101.INS 2 isi8-20120817.xml XBRL INSTANCE DOCUMENT 0000930667 isi8:S000037851Member 2011-08-18 2012-08-17 0000930667 2011-08-18 2012-08-17 0000930667 isi8:C000116781Member isi8:S000037851Member 2011-08-18 2012-08-17 pure iso4217:USD <div class="MetaData"> <div> <p><font style="text-align: center; line-height: 19pt; display: block; font-family: Arial; font-size: 17pt; font-weight: normal;" class="_mt">iSHARES<sup style="position: relative; bottom: 0.7em; font-size: 75%; vertical-align: baseline;">&#174;</sup> LATIN AMERICA<br/>BOND FUND</font></p> <p style="margin-top: 0px; margin-bottom: 0px;"><font style="text-align: left; line-height: 11pt; font-family: Arial; margin-left: 35%; font-size: 9.5pt; font-weight: normal; margin-right: 10%;" class="_mt">Ticker: LTAM </font><font style="TEXT-ALIGN: right; LINE-HEIGHT: 11pt; FONT-FAMILY: Arial; FONT-SIZE: 9.5pt; FONT-WEIGHT: normal"> Stock Exchange: NASDAQ </font></p></div></div> <font style="TEXT-ALIGN: left; LINE-HEIGHT: 22pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 19pt; FONT-WEIGHT: bold">Investment Objective</font> <font style="TEXT-ALIGN: left; LINE-HEIGHT: 12pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 10pt; FONT-WEIGHT: normal">The iShares Latin America Bond Fund (the &#8220;Fund&#8221;) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Barclays Latin America Bond Index (the &#8220;Underlying Index&#8221;).</font> <font style="TEXT-ALIGN: left; LINE-HEIGHT: 22pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 19pt; FONT-WEIGHT: bold">Fees and Expenses</font> <font style="TEXT-ALIGN: left; LINE-HEIGHT: 12pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 10pt; FONT-WEIGHT: normal">The following table describes the fees and expenses that you will incur if you own shares of the Fund. The investment advisory agreement between iShares, Inc. (the &#8220;Company&#8221;) and BlackRock Fund Advisors (&#8220;BFA&#8221;) (the &#8220;Investment Advisory Agreement&#8221;) provides that BFA will pay all operating expenses of the Fund, except interest expenses, taxes, brokerage expenses, future distribution fees or expenses, and extraordinary expenses.</font><p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font size="1">&nbsp;</font></p><p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font size="1">&nbsp;</font></p><font style="TEXT-ALIGN: left; LINE-HEIGHT: 12pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 10pt; FONT-WEIGHT: normal">You may also incur usual and customary brokerage commissions when buying or selling shares of the Fund, which are not reflected in the example that follows:</font> <font style="FONT-FAMILY: arial" size="1"><center><b>Annual Fund Operating Expenses <br/>(ongoing expenses that you pay each year as a <br/>percentage of the value of your investments)</b></font> <font style="TEXT-ALIGN: left; LINE-HEIGHT: 12pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 10pt; FONT-WEIGHT: normal"><b>Example. </b> <font style="TEXT-ALIGN: left; LINE-HEIGHT: 12pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 10pt; FONT-WEIGHT: normal">This Example is intended to help you compare the cost of owning shares of the Fund with the cost of investing in other funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then sell all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund&#8217;s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:</font> <font style="TEXT-ALIGN: left; LINE-HEIGHT: 12pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 10pt; FONT-WEIGHT: normal"><b>Portfolio Turnover.</b> <font style="TEXT-ALIGN: left; LINE-HEIGHT: 12pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 10pt; FONT-WEIGHT: normal">The Fund may pay transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund&#8217;s performance.</font> <font style="TEXT-ALIGN: left; LINE-HEIGHT: 22pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 19pt; FONT-WEIGHT: bold">Principal Investment Strategies</font> <font style="TEXT-ALIGN: left; LINE-HEIGHT: 12pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 10pt; FONT-WEIGHT: normal">The Underlying Index is designed to measure the performance of U.S. dollar-denominated bond markets of corporate, sovereign and quasi-sovereign issuers domiciled in Latin America. Securities included in the Underlying Index must be issued by entities domiciled in Latin America that satisfy certain eligibility requirements, and meet separate security-specific requirements. Each security issued by an eligible issuer included in the Underlying Index must have a minimum maturity of one year and a minimum par amount outstanding, depending on the credit rating and country of domicile. As of July 31, 2012, the Underlying Index consisted of both investment grade and non-investment grade bonds. Non-investment grade bonds are also known as &#8220;junk bonds.&#8221;</font><p><font style="TEXT-ALIGN: left; LINE-HEIGHT: 12pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 10pt; FONT-WEIGHT: normal">As of July 31, 2012, there were 314 issues in the Underlying Index, which consisted of issuers from the following countries: Argentina, Belize, Brazil, Chile, Colombia, the Dominican Republic, Ecuador, El Salvador, Guatemala, Jamaica, Mexico, Panama, Peru, Trinidad, Uruguay and Venezuela. Component issuers include sovereign and quasi-sovereign entities and industrial companies. The components of the Underlying Index, and the degree to which these components represent certain industries, may change over time.</font></p><p><font style="TEXT-ALIGN: left; LINE-HEIGHT: 12pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 10pt; FONT-WEIGHT: normal">A security is considered investment grade if it is rated Baa3 or higher by Moody&#8217;s<sup style="POSITION: relative; BOTTOM: 0.7em; FONT-SIZE: 75%; VERTICAL-ALIGN: baseline">&#174;</sup> Investors Service, Inc. (&#8220;Moody&#8217;s&#8221;) or BBB- or higher by Standard &amp; Poor&#8217;s Ratings Services and Fitch, Inc. (&#8220;Fitch&#8221;), using the middle rating of Moody&#8217;s, Standard &amp; Poor&#8217;s Ratings Services and Fitch. When ratings from only two of these agencies are available, the lower rating is used. When a rating from only one of these agencies is available, that rating is used to determine index eligibility.</font></p><p><font style="TEXT-ALIGN: left; LINE-HEIGHT: 12pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 10pt; FONT-WEIGHT: normal">The Underlying Index includes both emerging market and non-emerging market countries in Latin America. A country is considered an emerging market if it has a foreign currency sovereign rating of Baa1 or lower as determined by Moody&#8217;s or BBB+ or lower as determined by Standard &amp; Poor&#8217;s Ratings Services or Fitch, using the middle rating of Moody&#8217;s, Standard &amp; Poor&#8217;s Ratings Services or Fitch. When ratings from only two of these agencies are available, the lower rating is used. When a rating from only one of these agencies is available, that rating is used to determine index eligibility. A country is considered a non-emerging market country if it has a foreign currency sovereign rating of A3 or higher as determined by Moody&#8217;s or A- or higher as determined by Standard &amp; Poor&#8217;s Ratings Services or Fitch.</font></p><p><font style="TEXT-ALIGN: left; LINE-HEIGHT: 12pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 10pt; FONT-WEIGHT: normal">Securities rated investment grade and domiciled in either an emerging market or a non-emerging market country must have a minimum of $300 million par amount outstanding. Securities rated non-investment grade and domiciled in a non-emerging market country must have a minimum of $150 million par amount outstanding. Securities rated non-investment grade and domiciled in an emerging market country must have a minimum of $500 million par amount outstanding; however, corporate issuers must have at least $1 billion of aggregate par amount outstanding.</font></p><p><font style="TEXT-ALIGN: left; LINE-HEIGHT: 12pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 10pt; FONT-WEIGHT: normal">BFA uses a &#8220;passive&#8221; or indexing approach to try to achieve the Fund&#8217;s investment objective. Unlike many investment companies, the Fund does not try to &#8220;beat&#8221; the index it tracks and does not seek temporary defensive positions when markets decline or appear overvalued.</font></p><p><font style="TEXT-ALIGN: left; LINE-HEIGHT: 12pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 10pt; FONT-WEIGHT: normal">Indexing may eliminate the chance that the Fund will substantially outperform the Underlying Index but also may reduce some of the risks of active management, such as poor security selection. Indexing seeks to achieve lower costs and better after-tax performance by keeping portfolio turnover low in comparison to actively managed investment companies.</font></p><p><font style="TEXT-ALIGN: left; LINE-HEIGHT: 12pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 10pt; FONT-WEIGHT: normal">BFA uses a representative sampling indexing strategy to manage the Fund. &#8220;Representative sampling&#8221; is an indexing strategy that involves investing in a representative sample of securities that collectively has an investment profile similar to the Underlying Index. The securities selected are expected to have, in the aggregate, investment characteristics (based on factors such as market capitalization and industry weightings), fundamental characteristics (such as return variability, duration, maturity or credit ratings and yield) and liquidity measures similar to those of the Underlying Index. The Fund may or may not hold all of the securities in the Underlying Index.</font></p><p><font style="TEXT-ALIGN: left; LINE-HEIGHT: 12pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 10pt; FONT-WEIGHT: normal">The Fund generally invests at least 80% of its assets in the securities of the Underlying Index. However, the Fund may at times invest up to 20% of its assets in certain futures, options and swap contracts, cash and cash equivalents, including money market funds advised by BFA or its affiliates, as well as in securities not included in the Underlying Index, but which BFA believes will help the Fund track the Underlying Index.</font></p><p><font style="TEXT-ALIGN: left; LINE-HEIGHT: 12pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 10pt; FONT-WEIGHT: normal">The Fund may lend securities representing up to one-third of the value of the Fund&#8217;s total assets (including the value of the collateral received).</font></p><p><font style="TEXT-ALIGN: left; LINE-HEIGHT: 12pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 10pt; FONT-WEIGHT: normal">The Underlying Index is sponsored by an organization (the &#8220;Index Provider&#8221;) that is independent of the Fund and BFA. The Index Provider determines the composition and relative weightings of the securities in the Underlying Index and publishes information regarding the market value of the Underlying Index. The Fund&#8217;s Index Provider is Barclays Capital Inc. (&#8220;Barclays Capital&#8221;).</font></p><font style="TEXT-ALIGN: left; LINE-HEIGHT: 12pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 10pt; FONT-WEIGHT: normal"><b>Industry Concentration Policy.</b> The Fund will concentrate its investments (<em>i.e.</em>, hold 25% or more of its total assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated. For purposes of this limitation, securities of the U.S. government (including its agencies and instrumentalities), repurchase agreements collateralized by U.S. government securities, and securities of state or municipal governments and their political subdivisions are not considered to be issued by members of any industry.</font> <div style="display:none">~ http://www.iShares.com/role/ScheduleAnnualFundOperatingExpensesTransposediSharesLatinAmericaBondFund column period compact * ~</div> <div style="display:none">~ http://www.iShares.com/role/ScheduleExpenseExampleTransposediSharesLatinAmericaBondFund column period compact * ~</div> 2012-08-17 0.0049 0 0 0.0049 50 157 <font style="TEXT-ALIGN: left; LINE-HEIGHT: 12pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 10pt; FONT-WEIGHT: normal"><b>Industry Concentration Policy.</b> The Fund will concentrate its investments (<em>i.e.</em>, hold 25% or more of its total assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated. For purposes of this limitation, securities of the U.S. government (including its agencies and instrumentalities), repurchase agreements collateralized by U.S. government securities, and securities of state or municipal governments and their political subdivisions are not considered to be issued by members of any industry.</font> <font style="TEXT-ALIGN: left; LINE-HEIGHT: 22pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 19pt; FONT-WEIGHT: bold">Summary of Principal Risks</font> <font style="TEXT-ALIGN: left; LINE-HEIGHT: 22pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 19pt; FONT-WEIGHT: bold">Performance Information</font> <font style="TEXT-ALIGN: left; LINE-HEIGHT: 12pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 10pt; FONT-WEIGHT: normal">As of the date of the Fund&#8217;s prospectus (the &#8220;Prospectus&#8221;), the Fund has been in operation for less than one full calendar year and therefore does not report its performance information.</font> <font style="TEXT-ALIGN: left; LINE-HEIGHT: 12pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 10pt; FONT-WEIGHT: normal">As of the date of the Fund&#8217;s prospectus (the &#8220;Prospectus&#8221;), the Fund has been in operation for less than one full calendar year and therefore does not report its performance information.</font> <font style="TEXT-ALIGN: left; LINE-HEIGHT: 12pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 10pt; FONT-WEIGHT: normal">As with any investment, you could lose all or part of your investment in the Fund, and the Fund&#8217;s performance could trail that of other investments.</font> <font style="TEXT-ALIGN: left; LINE-HEIGHT: 12pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 10pt; FONT-WEIGHT: normal"><strong><em>Non-Diversification Risk</em>.</strong> The Fund may invest a large percentage of its assets in securities issued by or representing a small number of issuers. As a result, the Fund&#8217;s performance may depend on the performance of a small number of issuers.</font> <font style="TEXT-ALIGN: left; LINE-HEIGHT: 12pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 10pt; FONT-WEIGHT: normal">You may also incur usual and customary brokerage commissions when buying or selling shares of the Fund, which are not reflected in the example that follows:</font> <font style="TEXT-ALIGN: left; LINE-HEIGHT: 12pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 10pt; FONT-WEIGHT: normal">As with any investment, you could lose all or part of your investment in the Fund, and the Fund&#8217;s performance could trail that of other investments. The Fund is subject to the principal risks noted below, any of which may adversely affect the Fund&#8217;s net asset value per share (&#8220;NAV&#8221;), trading price, yield, total return and ability to meet its investment objective.</font><p><font style="TEXT-ALIGN: left; LINE-HEIGHT: 12pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 10pt; FONT-WEIGHT: normal"><strong><em>Asset Class Risk</em>.</strong> Securities in the Underlying Index or in the Fund&#8217;s portfolio may underperform in comparison to the general securities markets or other asset classes.</font></p><p><font style="TEXT-ALIGN: left; LINE-HEIGHT: 12pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 10pt; FONT-WEIGHT: normal"><strong><em>Call Risk</em>. </strong>During periods of falling interest rates, an issuer of a callable bond held by the Fund may &#8220;call&#8221; or repay the security before its stated maturity, and the Fund may have to reinvest the proceeds at lower interest rates, resulting in a decline in the Fund&#8217;s income. </font></p><p><font style="TEXT-ALIGN: left; LINE-HEIGHT: 12pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 10pt; FONT-WEIGHT: normal"><strong><em>Concentration Risk.</em></strong> To the extent that the Fund&#8217;s investments are concentrated in a particular country, group of countries, region, market, industry, group of industries, sector or asset class, the Fund may be susceptible to loss due to adverse occurrences affecting that country, group of countries, region, market, industry, group of industries, sector or asset class. </font></p><p><font style="TEXT-ALIGN: left; LINE-HEIGHT: 12pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 10pt; FONT-WEIGHT: normal"><strong><em>Credit Risk</em>.</strong> The Fund is subject to the risk that debt issuers and other counterparties may not honor their obligations or may have their debt downgraded by ratings agencies. </font></p><p><font style="TEXT-ALIGN: left; LINE-HEIGHT: 12pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 10pt; FONT-WEIGHT: normal"><strong><em>Custody Risk</em>.</strong> Less developed markets are more likely to experience problems with the clearing and settling of trades and the holding of securities by local banks, agents and depositories. </font></p><p><font style="TEXT-ALIGN: left; LINE-HEIGHT: 12pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 10pt; FONT-WEIGHT: normal"><strong><em>Extension Risk. </em></strong>During periods of rising interest rates, certain obligations will be paid off substantially more slowly than originally anticipated and the value of those securities may fall sharply, resulting in a decline to the Fund&#8217;s income and potentially in the value of the Fund&#8217;s investments. </font></p><p><font style="TEXT-ALIGN: left; LINE-HEIGHT: 12pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 10pt; FONT-WEIGHT: normal"><strong><em>Geographic Risk</em>.</strong> A natural or other disaster could occur in a geographic region in which the Fund invests. </font></p><p><font style="TEXT-ALIGN: left; LINE-HEIGHT: 12pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 10pt; FONT-WEIGHT: normal"><strong><em>High Yield Securities Risk. </em></strong>Securities that are rated below investment grade (commonly referred to as &#8220;junk bonds,&#8221; including those bonds rated lower than &#8220;BBB-&#8221; by Standard &amp; Poor&#8217;s Ratings Services and Fitch, or &#8220;Baa3&#8221; by Moody&#8217;s), or are unrated, may be deemed speculative and more volatile than higher-rated securities of similar maturity. </font></p><p><font style="TEXT-ALIGN: left; LINE-HEIGHT: 12pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 10pt; FONT-WEIGHT: normal"><strong><em>Income Risk. </em></strong>The Fund&#8217;s income may decline when interest rates fall. This decline can occur because the Fund must invest in lower-yielding bonds as bonds in its portfolio mature, bonds in the Underlying Index are substituted or the Fund otherwise needs to purchase additional bonds. </font></p><p><font style="TEXT-ALIGN: left; LINE-HEIGHT: 12pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 10pt; FONT-WEIGHT: normal"><strong><em>Industrials Sector Risk.</em></strong> The industrials sector may be affected by changes in the supply and demand for products and services, product obsolescence, claims for environmental damage or product liability and general economic conditions, among other factors. </font></p><p><font style="TEXT-ALIGN: left; LINE-HEIGHT: 12pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 10pt; FONT-WEIGHT: normal"><strong><em>Interest Rate Risk</em>.</strong> An increase in interest rates may cause the value of fixed-income securities held by the Fund to decline.</font></p><p><font style="TEXT-ALIGN: left; LINE-HEIGHT: 12pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 10pt; FONT-WEIGHT: normal"><strong><em>Issuer Risk</em>.</strong> Fund performance depends on the performance of individual securities to which the Fund has exposure. Changes to the financial condition or credit rating of an issuer of those securities may cause the value of the securities to decline. </font></p><p><font style="TEXT-ALIGN: left; LINE-HEIGHT: 12pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 10pt; FONT-WEIGHT: normal"><strong><em>Liquidity Risk</em>.</strong> Liquidity risk exists when particular investments are difficult to purchase or sell. This can reduce the Fund&#8217;s returns because the Fund may be unable to transact at advantageous times or prices. </font></p><p><font style="TEXT-ALIGN: left; LINE-HEIGHT: 12pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 10pt; FONT-WEIGHT: normal"><strong><em>Management Risk</em>.</strong> As the Fund may not fully replicate the Underlying Index, it is subject to the risk that BFA&#8217;s investment management strategy may not produce the intended results. </font></p><p><font style="TEXT-ALIGN: left; LINE-HEIGHT: 12pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 10pt; FONT-WEIGHT: normal"><strong><em>Market Risk</em>.</strong> The Fund could lose money over short periods due to short-term market movements and over longer periods during market downturns. </font></p><p><font style="TEXT-ALIGN: left; LINE-HEIGHT: 12pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 10pt; FONT-WEIGHT: normal"><strong><em>Market Trading Risk</em>.</strong> The Fund faces numerous market trading risks, including the potential lack of an active market for Fund shares, losses from trading in secondary markets, periods of high volatility and disruption in the creation/redemption process of the Fund. ANY OF THESE FACTORS, AMONG OTHERS, MAY LEAD TO THE FUND&#8217;S SHARES TRADING AT A PREMIUM OR DISCOUNT TO NAV. </font></p><p><font style="TEXT-ALIGN: left; LINE-HEIGHT: 12pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 10pt; FONT-WEIGHT: normal"><strong><em>Non-Diversification Risk</em>.</strong> The Fund may invest a large percentage of its assets in securities issued by or representing a small number of issuers. As a result, the Fund&#8217;s performance may depend on the performance of a small number of issuers. </font></p><p><font style="TEXT-ALIGN: left; LINE-HEIGHT: 12pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 10pt; FONT-WEIGHT: normal"><strong><em>Non-U.S. Issuers Risk. </em></strong>Securities issued by non-U.S. issuers carry different risks from securities issued by U.S. issuers. These include differences in accounting, auditing and financial reporting standards, the possibility of expropriation or confiscatory taxation, adverse changes in investment or exchange control regulations, political instability, regulatory and economic differences, and potential restrictions on the flow of international capital. The Fund is specifically exposed to <strong>Latin American Economic Risk</strong>.</font></p><p><font style="TEXT-ALIGN: left; LINE-HEIGHT: 12pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 10pt; FONT-WEIGHT: normal"><strong><em>Passive Investment Risk</em>.</strong> The Fund is not actively managed and BFA does not attempt to take defensive positions under any market conditions, including declining markets. </font></p><p><font style="TEXT-ALIGN: left; LINE-HEIGHT: 12pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 10pt; FONT-WEIGHT: normal"><strong><em>Reliance on Trading Partners Risk</em>.</strong> The Fund invests in countries whose economies are heavily dependent upon trading with key partners. Any reduction in this trading may have an adverse impact on the Fund&#8217;s investments. The Fund is specifically exposed to <strong>Asian Economic Risk, European Economic Risk, Latin American Economic Risk </strong>and<strong> U.S. Economic Risk</strong>.</font></p><p><font style="TEXT-ALIGN: left; LINE-HEIGHT: 12pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 10pt; FONT-WEIGHT: normal"><strong><em>Risk of Investing in Brazil</em>.</strong> Investment in Brazilian issuers involves risks that are specific to Brazil, including legal, regulatory, political and economic risks. The Brazilian economy has historically been exposed to high rates of inflation and a high level of debt, all of which may prohibit economic growth. As a result, such risks may adversely affect the value of the Fund&#8217;s investments. </font></p><p><font style="TEXT-ALIGN: left; LINE-HEIGHT: 12pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 10pt; FONT-WEIGHT: normal"><strong><em>Risk of Investing in Emerging Markets</em>.</strong> The Fund&#8217;s investments in emerging markets may be subject to a greater risk of loss than investments in more developed markets. Emerging markets may be more likely to experience inflation risk, political turmoil and rapid changes in economic conditions than more developed markets. Emerging markets often have less uniformity in accounting and reporting requirements, unreliable securities valuation and greater risk associated with custody of securities.</font></p><p><font style="TEXT-ALIGN: left; LINE-HEIGHT: 12pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 10pt; FONT-WEIGHT: normal"><strong><em>Risk of Investing in Latin America.</em></strong> The economies of certain Latin American countries have experienced high interest rates, economic volatility, inflation, currency devaluations, government debt defaults and high unemployment rates. Certain Latin American countries have experienced periods of political and economic instability and social unrest in the past. International economic conditions, particularly those in the United States, Europe and Asia, as well as world prices for oil and other commodities may also influence the development of Latin American economies. As a result, such risks may adversely affect the value of the Fund&#8217;s investments. </font></p><p><font style="TEXT-ALIGN: left; LINE-HEIGHT: 12pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 10pt; FONT-WEIGHT: normal"><strong><em>Risk of Investing in Mexico</em>.</strong> Investment in Mexican issuers involves risks that are specific to Mexico, including legal, regulatory, political, currency, security and economic risks. In the past Mexico has experienced high interest rates, economic volatility and high unemployment rates. As a result, such risks may adversely affect the value of the Fund&#8217;s investments. </font></p><p><font style="TEXT-ALIGN: left; LINE-HEIGHT: 12pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 10pt; FONT-WEIGHT: normal"><strong><em>Securities Lending Risk. </em></strong>The Fund may engage in securities lending. Securities lending involves the risk that the Fund may lose money because the borrower of the Fund&#8217;s loaned securities fails to return the securities in a timely manner or at all. The Fund could also lose money in the event of a decline in the value of the collateral provided for loaned securities or a decline in the value of any investments made with cash collateral. These events could also trigger adverse tax consequences for the Fund. </font></p><p><font style="TEXT-ALIGN: left; LINE-HEIGHT: 12pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 10pt; FONT-WEIGHT: normal"><strong><em>Security Risk</em>.</strong> Some countries and regions in which the Fund invests have experienced security concerns. Incidents involving a country&#8217;s or region&#8217;s security may cause uncertainty in these markets and may adversely affect their economies and the Fund&#8217;s investments. </font></p><p><font style="TEXT-ALIGN: left; LINE-HEIGHT: 12pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 10pt; FONT-WEIGHT: normal"><strong><em>Sovereign and Quasi-Sovereign Obligations Risk. </em></strong>The Fund will invest in securities issued by or guaranteed by non-U.S. sovereign governments and by entities affiliated with or backed by non-U.S. sovereign governments, which may be unable or unwilling to repay principal or interest when due. In times of economic uncertainty, the prices of these securities may be more volatile than those of corporate debt obligations. </font></p><font style="TEXT-ALIGN: left; LINE-HEIGHT: 12pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 10pt; FONT-WEIGHT: normal"><strong><em>Tracking Error Risk</em>.</strong> Tracking error is the divergence of the Fund&#8217;s performance from that of the Underlying Index. Tracking error may occur because of imperfect correlation between the Fund&#8217;s holdings of portfolio securities and those in the Underlying Index, pricing differences, the Fund&#8217;s holding of cash, differences on timing of the accrual of dividends, changes to the Underlying Index or the need to meet various regulatory requirements. This risk may be heightened during times of increased market volatility or other unusual market conditions. Tracking error also may result because the Fund incurs fees and expenses, while the Underlying Index does not. BFA EXPECTS THAT THE FUND MAY EXPERIENCE HIGHER TRACKING ERROR THAN IS TYPICAL FOR SIMILAR INDEX EXCHANGE-TRADED FUNDS. BFA EXPECTS THAT THE FUND MAY EXPERIENCE HIGHER TRACKING ERROR UNTIL THE FUND REACHES SUFFICIENT SCALE AND FURTHER BROADENS ITS HOLDINGS.</font><font style="TEXT-ALIGN: left; LINE-HEIGHT: 12pt; DISPLAY: block; FONT-FAMILY: Arial; FONT-SIZE: 10pt; FONT-WEIGHT: normal"><strong><em>Valuation Risk</em>.</strong> The sales price the Fund could receive for a security may differ from the Fund&#8217;s valuation of the security and may differ from the value used by the Underlying Index, particularly for securities that trade in low volume or volatile markets or that are valued using a fair value methodology. 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iShares Latin America Bond Fund
Investment Objective
The iShares Latin America Bond Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Barclays Latin America Bond Index (the “Underlying Index”).
Fees and Expenses
The following table describes the fees and expenses that you will incur if you own shares of the Fund. The investment advisory agreement between iShares, Inc. (the “Company”) and BlackRock Fund Advisors (“BFA”) (the “Investment Advisory Agreement”) provides that BFA will pay all operating expenses of the Fund, except interest expenses, taxes, brokerage expenses, future distribution fees or expenses, and extraordinary expenses.

 

 

You may also incur usual and customary brokerage commissions when buying or selling shares of the Fund, which are not reflected in the example that follows:
Annual Fund Operating Expenses
(ongoing expenses that you pay each year as a
percentage of the value of your investments)
Annual Fund Operating Expenses
Management Fees
Distribution and Service (12b-1) Fees
Other Expenses
Total Annual Fund Operating Expenses
iShares Latin America Bond Fund
0.49% none none 0.49%
Example.
This Example is intended to help you compare the cost of owning shares of the Fund with the cost of investing in other funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then sell all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
Expense Example (USD $)
1 Year
3 Years
iShares Latin America Bond Fund
50 157
Portfolio Turnover.
The Fund may pay transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund’s performance.
Principal Investment Strategies
The Underlying Index is designed to measure the performance of U.S. dollar-denominated bond markets of corporate, sovereign and quasi-sovereign issuers domiciled in Latin America. Securities included in the Underlying Index must be issued by entities domiciled in Latin America that satisfy certain eligibility requirements, and meet separate security-specific requirements. Each security issued by an eligible issuer included in the Underlying Index must have a minimum maturity of one year and a minimum par amount outstanding, depending on the credit rating and country of domicile. As of July 31, 2012, the Underlying Index consisted of both investment grade and non-investment grade bonds. Non-investment grade bonds are also known as “junk bonds.”

As of July 31, 2012, there were 314 issues in the Underlying Index, which consisted of issuers from the following countries: Argentina, Belize, Brazil, Chile, Colombia, the Dominican Republic, Ecuador, El Salvador, Guatemala, Jamaica, Mexico, Panama, Peru, Trinidad, Uruguay and Venezuela. Component issuers include sovereign and quasi-sovereign entities and industrial companies. The components of the Underlying Index, and the degree to which these components represent certain industries, may change over time.

A security is considered investment grade if it is rated Baa3 or higher by Moody’s® Investors Service, Inc. (“Moody’s”) or BBB- or higher by Standard & Poor’s Ratings Services and Fitch, Inc. (“Fitch”), using the middle rating of Moody’s, Standard & Poor’s Ratings Services and Fitch. When ratings from only two of these agencies are available, the lower rating is used. When a rating from only one of these agencies is available, that rating is used to determine index eligibility.

The Underlying Index includes both emerging market and non-emerging market countries in Latin America. A country is considered an emerging market if it has a foreign currency sovereign rating of Baa1 or lower as determined by Moody’s or BBB+ or lower as determined by Standard & Poor’s Ratings Services or Fitch, using the middle rating of Moody’s, Standard & Poor’s Ratings Services or Fitch. When ratings from only two of these agencies are available, the lower rating is used. When a rating from only one of these agencies is available, that rating is used to determine index eligibility. A country is considered a non-emerging market country if it has a foreign currency sovereign rating of A3 or higher as determined by Moody’s or A- or higher as determined by Standard & Poor’s Ratings Services or Fitch.

Securities rated investment grade and domiciled in either an emerging market or a non-emerging market country must have a minimum of $300 million par amount outstanding. Securities rated non-investment grade and domiciled in a non-emerging market country must have a minimum of $150 million par amount outstanding. Securities rated non-investment grade and domiciled in an emerging market country must have a minimum of $500 million par amount outstanding; however, corporate issuers must have at least $1 billion of aggregate par amount outstanding.

BFA uses a “passive” or indexing approach to try to achieve the Fund’s investment objective. Unlike many investment companies, the Fund does not try to “beat” the index it tracks and does not seek temporary defensive positions when markets decline or appear overvalued.

Indexing may eliminate the chance that the Fund will substantially outperform the Underlying Index but also may reduce some of the risks of active management, such as poor security selection. Indexing seeks to achieve lower costs and better after-tax performance by keeping portfolio turnover low in comparison to actively managed investment companies.

BFA uses a representative sampling indexing strategy to manage the Fund. “Representative sampling” is an indexing strategy that involves investing in a representative sample of securities that collectively has an investment profile similar to the Underlying Index. The securities selected are expected to have, in the aggregate, investment characteristics (based on factors such as market capitalization and industry weightings), fundamental characteristics (such as return variability, duration, maturity or credit ratings and yield) and liquidity measures similar to those of the Underlying Index. The Fund may or may not hold all of the securities in the Underlying Index.

The Fund generally invests at least 80% of its assets in the securities of the Underlying Index. However, the Fund may at times invest up to 20% of its assets in certain futures, options and swap contracts, cash and cash equivalents, including money market funds advised by BFA or its affiliates, as well as in securities not included in the Underlying Index, but which BFA believes will help the Fund track the Underlying Index.

The Fund may lend securities representing up to one-third of the value of the Fund’s total assets (including the value of the collateral received).

The Underlying Index is sponsored by an organization (the “Index Provider”) that is independent of the Fund and BFA. The Index Provider determines the composition and relative weightings of the securities in the Underlying Index and publishes information regarding the market value of the Underlying Index. The Fund’s Index Provider is Barclays Capital Inc. (“Barclays Capital”).

Industry Concentration Policy. The Fund will concentrate its investments (i.e., hold 25% or more of its total assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated. For purposes of this limitation, securities of the U.S. government (including its agencies and instrumentalities), repurchase agreements collateralized by U.S. government securities, and securities of state or municipal governments and their political subdivisions are not considered to be issued by members of any industry.
Summary of Principal Risks
As with any investment, you could lose all or part of your investment in the Fund, and the Fund’s performance could trail that of other investments. The Fund is subject to the principal risks noted below, any of which may adversely affect the Fund’s net asset value per share (“NAV”), trading price, yield, total return and ability to meet its investment objective.

Asset Class Risk. Securities in the Underlying Index or in the Fund’s portfolio may underperform in comparison to the general securities markets or other asset classes.

Call Risk. During periods of falling interest rates, an issuer of a callable bond held by the Fund may “call” or repay the security before its stated maturity, and the Fund may have to reinvest the proceeds at lower interest rates, resulting in a decline in the Fund’s income.

Concentration Risk. To the extent that the Fund’s investments are concentrated in a particular country, group of countries, region, market, industry, group of industries, sector or asset class, the Fund may be susceptible to loss due to adverse occurrences affecting that country, group of countries, region, market, industry, group of industries, sector or asset class.

Credit Risk. The Fund is subject to the risk that debt issuers and other counterparties may not honor their obligations or may have their debt downgraded by ratings agencies.

Custody Risk. Less developed markets are more likely to experience problems with the clearing and settling of trades and the holding of securities by local banks, agents and depositories.

Extension Risk. During periods of rising interest rates, certain obligations will be paid off substantially more slowly than originally anticipated and the value of those securities may fall sharply, resulting in a decline to the Fund’s income and potentially in the value of the Fund’s investments.

Geographic Risk. A natural or other disaster could occur in a geographic region in which the Fund invests.

High Yield Securities Risk. Securities that are rated below investment grade (commonly referred to as “junk bonds,” including those bonds rated lower than “BBB-” by Standard & Poor’s Ratings Services and Fitch, or “Baa3” by Moody’s), or are unrated, may be deemed speculative and more volatile than higher-rated securities of similar maturity.

Income Risk. The Fund’s income may decline when interest rates fall. This decline can occur because the Fund must invest in lower-yielding bonds as bonds in its portfolio mature, bonds in the Underlying Index are substituted or the Fund otherwise needs to purchase additional bonds.

Industrials Sector Risk. The industrials sector may be affected by changes in the supply and demand for products and services, product obsolescence, claims for environmental damage or product liability and general economic conditions, among other factors.

Interest Rate Risk. An increase in interest rates may cause the value of fixed-income securities held by the Fund to decline.

Issuer Risk. Fund performance depends on the performance of individual securities to which the Fund has exposure. Changes to the financial condition or credit rating of an issuer of those securities may cause the value of the securities to decline.

Liquidity Risk. Liquidity risk exists when particular investments are difficult to purchase or sell. This can reduce the Fund’s returns because the Fund may be unable to transact at advantageous times or prices.

Management Risk. As the Fund may not fully replicate the Underlying Index, it is subject to the risk that BFA’s investment management strategy may not produce the intended results.

Market Risk. The Fund could lose money over short periods due to short-term market movements and over longer periods during market downturns.

Market Trading Risk. The Fund faces numerous market trading risks, including the potential lack of an active market for Fund shares, losses from trading in secondary markets, periods of high volatility and disruption in the creation/redemption process of the Fund. ANY OF THESE FACTORS, AMONG OTHERS, MAY LEAD TO THE FUND’S SHARES TRADING AT A PREMIUM OR DISCOUNT TO NAV.

Non-Diversification Risk. The Fund may invest a large percentage of its assets in securities issued by or representing a small number of issuers. As a result, the Fund’s performance may depend on the performance of a small number of issuers.

Non-U.S. Issuers Risk. Securities issued by non-U.S. issuers carry different risks from securities issued by U.S. issuers. These include differences in accounting, auditing and financial reporting standards, the possibility of expropriation or confiscatory taxation, adverse changes in investment or exchange control regulations, political instability, regulatory and economic differences, and potential restrictions on the flow of international capital. The Fund is specifically exposed to Latin American Economic Risk.

Passive Investment Risk. The Fund is not actively managed and BFA does not attempt to take defensive positions under any market conditions, including declining markets.

Reliance on Trading Partners Risk. The Fund invests in countries whose economies are heavily dependent upon trading with key partners. Any reduction in this trading may have an adverse impact on the Fund’s investments. The Fund is specifically exposed to Asian Economic Risk, European Economic Risk, Latin American Economic Risk and U.S. Economic Risk.

Risk of Investing in Brazil. Investment in Brazilian issuers involves risks that are specific to Brazil, including legal, regulatory, political and economic risks. The Brazilian economy has historically been exposed to high rates of inflation and a high level of debt, all of which may prohibit economic growth. As a result, such risks may adversely affect the value of the Fund’s investments.

Risk of Investing in Emerging Markets. The Fund’s investments in emerging markets may be subject to a greater risk of loss than investments in more developed markets. Emerging markets may be more likely to experience inflation risk, political turmoil and rapid changes in economic conditions than more developed markets. Emerging markets often have less uniformity in accounting and reporting requirements, unreliable securities valuation and greater risk associated with custody of securities.

Risk of Investing in Latin America. The economies of certain Latin American countries have experienced high interest rates, economic volatility, inflation, currency devaluations, government debt defaults and high unemployment rates. Certain Latin American countries have experienced periods of political and economic instability and social unrest in the past. International economic conditions, particularly those in the United States, Europe and Asia, as well as world prices for oil and other commodities may also influence the development of Latin American economies. As a result, such risks may adversely affect the value of the Fund’s investments.

Risk of Investing in Mexico. Investment in Mexican issuers involves risks that are specific to Mexico, including legal, regulatory, political, currency, security and economic risks. In the past Mexico has experienced high interest rates, economic volatility and high unemployment rates. As a result, such risks may adversely affect the value of the Fund’s investments.

Securities Lending Risk. The Fund may engage in securities lending. Securities lending involves the risk that the Fund may lose money because the borrower of the Fund’s loaned securities fails to return the securities in a timely manner or at all. The Fund could also lose money in the event of a decline in the value of the collateral provided for loaned securities or a decline in the value of any investments made with cash collateral. These events could also trigger adverse tax consequences for the Fund.

Security Risk. Some countries and regions in which the Fund invests have experienced security concerns. Incidents involving a country’s or region’s security may cause uncertainty in these markets and may adversely affect their economies and the Fund’s investments.

Sovereign and Quasi-Sovereign Obligations Risk. The Fund will invest in securities issued by or guaranteed by non-U.S. sovereign governments and by entities affiliated with or backed by non-U.S. sovereign governments, which may be unable or unwilling to repay principal or interest when due. In times of economic uncertainty, the prices of these securities may be more volatile than those of corporate debt obligations.

Tracking Error Risk. Tracking error is the divergence of the Fund’s performance from that of the Underlying Index. Tracking error may occur because of imperfect correlation between the Fund’s holdings of portfolio securities and those in the Underlying Index, pricing differences, the Fund’s holding of cash, differences on timing of the accrual of dividends, changes to the Underlying Index or the need to meet various regulatory requirements. This risk may be heightened during times of increased market volatility or other unusual market conditions. Tracking error also may result because the Fund incurs fees and expenses, while the Underlying Index does not. BFA EXPECTS THAT THE FUND MAY EXPERIENCE HIGHER TRACKING ERROR THAN IS TYPICAL FOR SIMILAR INDEX EXCHANGE-TRADED FUNDS. BFA EXPECTS THAT THE FUND MAY EXPERIENCE HIGHER TRACKING ERROR UNTIL THE FUND REACHES SUFFICIENT SCALE AND FURTHER BROADENS ITS HOLDINGS.Valuation Risk. The sales price the Fund could receive for a security may differ from the Fund’s valuation of the security and may differ from the value used by the Underlying Index, particularly for securities that trade in low volume or volatile markets or that are valued using a fair value methodology. In addition, the value of the securities in the Fund’s portfolio may change on days when shareholders will not be able to purchase or sell the Fund’s shares.
Performance Information
As of the date of the Fund’s prospectus (the “Prospectus”), the Fund has been in operation for less than one full calendar year and therefore does not report its performance information.
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Prospectus Date rr_ProspectusDate Aug. 17, 2012
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Label Element Value
Risk/Return: rr_RiskReturnAbstract  
Registrant Name dei_EntityRegistrantName iSHARES INC
Prospectus Date rr_ProspectusDate Aug. 17, 2012
iShares Latin America Bond Fund
 
Risk/Return: rr_RiskReturnAbstract  
Risk/Return [Heading] rr_RiskReturnHeading
Objective [Heading] rr_ObjectiveHeading Investment Objective
Objective, Primary [Text Block] rr_ObjectivePrimaryTextBlock The iShares Latin America Bond Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Barclays Latin America Bond Index (the “Underlying Index”).
Expense [Heading] rr_ExpenseHeading Fees and Expenses
Expense Narrative [Text Block] rr_ExpenseNarrativeTextBlock The following table describes the fees and expenses that you will incur if you own shares of the Fund. The investment advisory agreement between iShares, Inc. (the “Company”) and BlackRock Fund Advisors (“BFA”) (the “Investment Advisory Agreement”) provides that BFA will pay all operating expenses of the Fund, except interest expenses, taxes, brokerage expenses, future distribution fees or expenses, and extraordinary expenses.

 

 

You may also incur usual and customary brokerage commissions when buying or selling shares of the Fund, which are not reflected in the example that follows:
Operating Expenses Caption [Text] rr_OperatingExpensesCaption
Annual Fund Operating Expenses
(ongoing expenses that you pay each year as a
percentage of the value of your investments)
Portfolio Turnover [Heading] rr_PortfolioTurnoverHeading Portfolio Turnover.
Portfolio Turnover [Text Block] rr_PortfolioTurnoverTextBlock The Fund may pay transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund’s performance.
Expense Exchange Traded Fund Commissions [Text] rr_ExpenseExchangeTradedFundCommissions You may also incur usual and customary brokerage commissions when buying or selling shares of the Fund, which are not reflected in the example that follows:
Expense Example [Heading] rr_ExpenseExampleHeading Example.
Expense Example Narrative [Text Block] rr_ExpenseExampleNarrativeTextBlock This Example is intended to help you compare the cost of owning shares of the Fund with the cost of investing in other funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then sell all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
Strategy [Heading] rr_StrategyHeading Principal Investment Strategies
Strategy Narrative [Text Block] rr_StrategyNarrativeTextBlock The Underlying Index is designed to measure the performance of U.S. dollar-denominated bond markets of corporate, sovereign and quasi-sovereign issuers domiciled in Latin America. Securities included in the Underlying Index must be issued by entities domiciled in Latin America that satisfy certain eligibility requirements, and meet separate security-specific requirements. Each security issued by an eligible issuer included in the Underlying Index must have a minimum maturity of one year and a minimum par amount outstanding, depending on the credit rating and country of domicile. As of July 31, 2012, the Underlying Index consisted of both investment grade and non-investment grade bonds. Non-investment grade bonds are also known as “junk bonds.”

As of July 31, 2012, there were 314 issues in the Underlying Index, which consisted of issuers from the following countries: Argentina, Belize, Brazil, Chile, Colombia, the Dominican Republic, Ecuador, El Salvador, Guatemala, Jamaica, Mexico, Panama, Peru, Trinidad, Uruguay and Venezuela. Component issuers include sovereign and quasi-sovereign entities and industrial companies. The components of the Underlying Index, and the degree to which these components represent certain industries, may change over time.

A security is considered investment grade if it is rated Baa3 or higher by Moody’s® Investors Service, Inc. (“Moody’s”) or BBB- or higher by Standard & Poor’s Ratings Services and Fitch, Inc. (“Fitch”), using the middle rating of Moody’s, Standard & Poor’s Ratings Services and Fitch. When ratings from only two of these agencies are available, the lower rating is used. When a rating from only one of these agencies is available, that rating is used to determine index eligibility.

The Underlying Index includes both emerging market and non-emerging market countries in Latin America. A country is considered an emerging market if it has a foreign currency sovereign rating of Baa1 or lower as determined by Moody’s or BBB+ or lower as determined by Standard & Poor’s Ratings Services or Fitch, using the middle rating of Moody’s, Standard & Poor’s Ratings Services or Fitch. When ratings from only two of these agencies are available, the lower rating is used. When a rating from only one of these agencies is available, that rating is used to determine index eligibility. A country is considered a non-emerging market country if it has a foreign currency sovereign rating of A3 or higher as determined by Moody’s or A- or higher as determined by Standard & Poor’s Ratings Services or Fitch.

Securities rated investment grade and domiciled in either an emerging market or a non-emerging market country must have a minimum of $300 million par amount outstanding. Securities rated non-investment grade and domiciled in a non-emerging market country must have a minimum of $150 million par amount outstanding. Securities rated non-investment grade and domiciled in an emerging market country must have a minimum of $500 million par amount outstanding; however, corporate issuers must have at least $1 billion of aggregate par amount outstanding.

BFA uses a “passive” or indexing approach to try to achieve the Fund’s investment objective. Unlike many investment companies, the Fund does not try to “beat” the index it tracks and does not seek temporary defensive positions when markets decline or appear overvalued.

Indexing may eliminate the chance that the Fund will substantially outperform the Underlying Index but also may reduce some of the risks of active management, such as poor security selection. Indexing seeks to achieve lower costs and better after-tax performance by keeping portfolio turnover low in comparison to actively managed investment companies.

BFA uses a representative sampling indexing strategy to manage the Fund. “Representative sampling” is an indexing strategy that involves investing in a representative sample of securities that collectively has an investment profile similar to the Underlying Index. The securities selected are expected to have, in the aggregate, investment characteristics (based on factors such as market capitalization and industry weightings), fundamental characteristics (such as return variability, duration, maturity or credit ratings and yield) and liquidity measures similar to those of the Underlying Index. The Fund may or may not hold all of the securities in the Underlying Index.

The Fund generally invests at least 80% of its assets in the securities of the Underlying Index. However, the Fund may at times invest up to 20% of its assets in certain futures, options and swap contracts, cash and cash equivalents, including money market funds advised by BFA or its affiliates, as well as in securities not included in the Underlying Index, but which BFA believes will help the Fund track the Underlying Index.

The Fund may lend securities representing up to one-third of the value of the Fund’s total assets (including the value of the collateral received).

The Underlying Index is sponsored by an organization (the “Index Provider”) that is independent of the Fund and BFA. The Index Provider determines the composition and relative weightings of the securities in the Underlying Index and publishes information regarding the market value of the Underlying Index. The Fund’s Index Provider is Barclays Capital Inc. (“Barclays Capital”).

Industry Concentration Policy. The Fund will concentrate its investments (i.e., hold 25% or more of its total assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated. For purposes of this limitation, securities of the U.S. government (including its agencies and instrumentalities), repurchase agreements collateralized by U.S. government securities, and securities of state or municipal governments and their political subdivisions are not considered to be issued by members of any industry.
Strategy Portfolio Concentration [Text] rr_StrategyPortfolioConcentration Industry Concentration Policy. The Fund will concentrate its investments (i.e., hold 25% or more of its total assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated. For purposes of this limitation, securities of the U.S. government (including its agencies and instrumentalities), repurchase agreements collateralized by U.S. government securities, and securities of state or municipal governments and their political subdivisions are not considered to be issued by members of any industry.
Risk [Heading] rr_RiskHeading Summary of Principal Risks
Risk Narrative [Text Block] rr_RiskNarrativeTextBlock As with any investment, you could lose all or part of your investment in the Fund, and the Fund’s performance could trail that of other investments. The Fund is subject to the principal risks noted below, any of which may adversely affect the Fund’s net asset value per share (“NAV”), trading price, yield, total return and ability to meet its investment objective.

Asset Class Risk. Securities in the Underlying Index or in the Fund’s portfolio may underperform in comparison to the general securities markets or other asset classes.

Call Risk. During periods of falling interest rates, an issuer of a callable bond held by the Fund may “call” or repay the security before its stated maturity, and the Fund may have to reinvest the proceeds at lower interest rates, resulting in a decline in the Fund’s income.

Concentration Risk. To the extent that the Fund’s investments are concentrated in a particular country, group of countries, region, market, industry, group of industries, sector or asset class, the Fund may be susceptible to loss due to adverse occurrences affecting that country, group of countries, region, market, industry, group of industries, sector or asset class.

Credit Risk. The Fund is subject to the risk that debt issuers and other counterparties may not honor their obligations or may have their debt downgraded by ratings agencies.

Custody Risk. Less developed markets are more likely to experience problems with the clearing and settling of trades and the holding of securities by local banks, agents and depositories.

Extension Risk. During periods of rising interest rates, certain obligations will be paid off substantially more slowly than originally anticipated and the value of those securities may fall sharply, resulting in a decline to the Fund’s income and potentially in the value of the Fund’s investments.

Geographic Risk. A natural or other disaster could occur in a geographic region in which the Fund invests.

High Yield Securities Risk. Securities that are rated below investment grade (commonly referred to as “junk bonds,” including those bonds rated lower than “BBB-” by Standard & Poor’s Ratings Services and Fitch, or “Baa3” by Moody’s), or are unrated, may be deemed speculative and more volatile than higher-rated securities of similar maturity.

Income Risk. The Fund’s income may decline when interest rates fall. This decline can occur because the Fund must invest in lower-yielding bonds as bonds in its portfolio mature, bonds in the Underlying Index are substituted or the Fund otherwise needs to purchase additional bonds.

Industrials Sector Risk. The industrials sector may be affected by changes in the supply and demand for products and services, product obsolescence, claims for environmental damage or product liability and general economic conditions, among other factors.

Interest Rate Risk. An increase in interest rates may cause the value of fixed-income securities held by the Fund to decline.

Issuer Risk. Fund performance depends on the performance of individual securities to which the Fund has exposure. Changes to the financial condition or credit rating of an issuer of those securities may cause the value of the securities to decline.

Liquidity Risk. Liquidity risk exists when particular investments are difficult to purchase or sell. This can reduce the Fund’s returns because the Fund may be unable to transact at advantageous times or prices.

Management Risk. As the Fund may not fully replicate the Underlying Index, it is subject to the risk that BFA’s investment management strategy may not produce the intended results.

Market Risk. The Fund could lose money over short periods due to short-term market movements and over longer periods during market downturns.

Market Trading Risk. The Fund faces numerous market trading risks, including the potential lack of an active market for Fund shares, losses from trading in secondary markets, periods of high volatility and disruption in the creation/redemption process of the Fund. ANY OF THESE FACTORS, AMONG OTHERS, MAY LEAD TO THE FUND’S SHARES TRADING AT A PREMIUM OR DISCOUNT TO NAV.

Non-Diversification Risk. The Fund may invest a large percentage of its assets in securities issued by or representing a small number of issuers. As a result, the Fund’s performance may depend on the performance of a small number of issuers.

Non-U.S. Issuers Risk. Securities issued by non-U.S. issuers carry different risks from securities issued by U.S. issuers. These include differences in accounting, auditing and financial reporting standards, the possibility of expropriation or confiscatory taxation, adverse changes in investment or exchange control regulations, political instability, regulatory and economic differences, and potential restrictions on the flow of international capital. The Fund is specifically exposed to Latin American Economic Risk.

Passive Investment Risk. The Fund is not actively managed and BFA does not attempt to take defensive positions under any market conditions, including declining markets.

Reliance on Trading Partners Risk. The Fund invests in countries whose economies are heavily dependent upon trading with key partners. Any reduction in this trading may have an adverse impact on the Fund’s investments. The Fund is specifically exposed to Asian Economic Risk, European Economic Risk, Latin American Economic Risk and U.S. Economic Risk.

Risk of Investing in Brazil. Investment in Brazilian issuers involves risks that are specific to Brazil, including legal, regulatory, political and economic risks. The Brazilian economy has historically been exposed to high rates of inflation and a high level of debt, all of which may prohibit economic growth. As a result, such risks may adversely affect the value of the Fund’s investments.

Risk of Investing in Emerging Markets. The Fund’s investments in emerging markets may be subject to a greater risk of loss than investments in more developed markets. Emerging markets may be more likely to experience inflation risk, political turmoil and rapid changes in economic conditions than more developed markets. Emerging markets often have less uniformity in accounting and reporting requirements, unreliable securities valuation and greater risk associated with custody of securities.

Risk of Investing in Latin America. The economies of certain Latin American countries have experienced high interest rates, economic volatility, inflation, currency devaluations, government debt defaults and high unemployment rates. Certain Latin American countries have experienced periods of political and economic instability and social unrest in the past. International economic conditions, particularly those in the United States, Europe and Asia, as well as world prices for oil and other commodities may also influence the development of Latin American economies. As a result, such risks may adversely affect the value of the Fund’s investments.

Risk of Investing in Mexico. Investment in Mexican issuers involves risks that are specific to Mexico, including legal, regulatory, political, currency, security and economic risks. In the past Mexico has experienced high interest rates, economic volatility and high unemployment rates. As a result, such risks may adversely affect the value of the Fund’s investments.

Securities Lending Risk. The Fund may engage in securities lending. Securities lending involves the risk that the Fund may lose money because the borrower of the Fund’s loaned securities fails to return the securities in a timely manner or at all. The Fund could also lose money in the event of a decline in the value of the collateral provided for loaned securities or a decline in the value of any investments made with cash collateral. These events could also trigger adverse tax consequences for the Fund.

Security Risk. Some countries and regions in which the Fund invests have experienced security concerns. Incidents involving a country’s or region’s security may cause uncertainty in these markets and may adversely affect their economies and the Fund’s investments.

Sovereign and Quasi-Sovereign Obligations Risk. The Fund will invest in securities issued by or guaranteed by non-U.S. sovereign governments and by entities affiliated with or backed by non-U.S. sovereign governments, which may be unable or unwilling to repay principal or interest when due. In times of economic uncertainty, the prices of these securities may be more volatile than those of corporate debt obligations.

Tracking Error Risk. Tracking error is the divergence of the Fund’s performance from that of the Underlying Index. Tracking error may occur because of imperfect correlation between the Fund’s holdings of portfolio securities and those in the Underlying Index, pricing differences, the Fund’s holding of cash, differences on timing of the accrual of dividends, changes to the Underlying Index or the need to meet various regulatory requirements. This risk may be heightened during times of increased market volatility or other unusual market conditions. Tracking error also may result because the Fund incurs fees and expenses, while the Underlying Index does not. BFA EXPECTS THAT THE FUND MAY EXPERIENCE HIGHER TRACKING ERROR THAN IS TYPICAL FOR SIMILAR INDEX EXCHANGE-TRADED FUNDS. BFA EXPECTS THAT THE FUND MAY EXPERIENCE HIGHER TRACKING ERROR UNTIL THE FUND REACHES SUFFICIENT SCALE AND FURTHER BROADENS ITS HOLDINGS.Valuation Risk. The sales price the Fund could receive for a security may differ from the Fund’s valuation of the security and may differ from the value used by the Underlying Index, particularly for securities that trade in low volume or volatile markets or that are valued using a fair value methodology. In addition, the value of the securities in the Fund’s portfolio may change on days when shareholders will not be able to purchase or sell the Fund’s shares.
Risk Lose Money [Text] rr_RiskLoseMoney As with any investment, you could lose all or part of your investment in the Fund, and the Fund’s performance could trail that of other investments.
Risk Nondiversified Status [Text] rr_RiskNondiversifiedStatus Non-Diversification Risk. The Fund may invest a large percentage of its assets in securities issued by or representing a small number of issuers. As a result, the Fund’s performance may depend on the performance of a small number of issuers.
Bar Chart and Performance Table [Heading] rr_BarChartAndPerformanceTableHeading Performance Information
Performance Narrative [Text Block] rr_PerformanceNarrativeTextBlock As of the date of the Fund’s prospectus (the “Prospectus”), the Fund has been in operation for less than one full calendar year and therefore does not report its performance information.
Performance One Year or Less [Text] rr_PerformanceOneYearOrLess As of the date of the Fund’s prospectus (the “Prospectus”), the Fund has been in operation for less than one full calendar year and therefore does not report its performance information.
iShares Latin America Bond Fund | iShares Latin America Bond Fund
 
Risk/Return: rr_RiskReturnAbstract  
Management Fees rr_ManagementFeesOverAssets 0.49%
Distribution and Service (12b-1) Fees rr_DistributionAndService12b1FeesOverAssets none
Other Expenses rr_OtherExpensesOverAssets none
Total Annual Fund Operating Expenses rr_ExpensesOverAssets 0.49%
1 Year rr_ExpenseExampleYear01 50
3 Years rr_ExpenseExampleYear03 157
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