iShares®
iShares Trust
iShares, Inc.
iShares MSCI Russia Capped Index Fund, Inc.
Supplement dated December 28, 2012
to the Statements of Additional Information (SAIs)
for all series of iShares Trust, iShares, Inc. and
iShares MSCI Russia Capped Index Fund, Inc.
(the Funds)
The information in this Supplement updates information in, and should be read in conjunction with, the SAI for each Fund.
Effective December 31, 2012, the following paragraph is added to the Investment Strategies and Risks section of each SAI:
Regulation Regarding Derivatives. Effective December 31, 2012, the Commodity Futures Trading Commission (CFTC) adopted certain regulatory changes that subjects registered investment companies and advisers to registered investment companies to regulation by the CFTC if a fund invests more than a prescribed level of its liquidation value in CFTC-regulated futures, options and swaps (CFTC Derivatives), or if the fund markets itself as providing investment exposure to such instruments. To the extent a Fund uses CFTC-regulated futures, options and swaps, it intends to do so below such prescribed levels and will not market itself as a commodity pool or a vehicle for trading such instruments. Accordingly, BFA has claimed an exclusion from the definition of the term commodity pool operator under the Commodity Exchange Act (CEA) pursuant to Rule 4.5 under the CEA. BFA is not, therefore, subject to registration or regulation as a commodity pool operator under the CEA in respect of such Fund.
A Fund may also have investments in underlying funds not advised by BlackRock (which for purposes of the no-action letter referenced below may include certain securitized vehicles and/or mortgage REITS that may invest in CFTC Derivatives). BFA has no transparency into the holdings of these underlying funds because they are not advised by BlackRock. To address this issue of lack of transparency, the CFTC staff issued a no-action letter on November 29, 2012 permitting the adviser of a fund that invests in such underlying funds and that would otherwise have filed a claim of exclusion pursuant to Rule 4.5, to delay registration as a commodity pool operator until June 30, 2013 or six months from the date in which the CFTC issues additional guidance on the treatment of CFTC Derivatives held by underlying funds. BFA, the adviser of the Funds, has filed a claim with the CFTC for certain of the Funds to rely on this no-action relief.
The first paragraph of the section entitled Futures and Options is hereby deleted and replaced with the following:
Futures and Options. Futures contracts and options may be used by a Fund to simulate investment in its Underlying Index, to facilitate trading or to reduce transaction costs. A Fund may enter into futures contracts and options that are traded on a U.S. or non-U.S. exchange. A Fund will not use futures or options for speculative purposes.
If you have any additional questions, please call 1-800-iShares (1-800-474-2737).
iShares® is a registered trademark of BlackRock Fund Advisors or its affiliates. IS-A-SU-SAIs
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