The benchmark index of the Fund is to change from 3 October 2011 (the “Effective Date”)..…
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The current benchmark index
Currently the benchmark index of the Fund is MSCI EM Latin America Index. MSCI EM Latin America Index is a free-float market capitalisation index that is designed to reflect the aggregate performance of the equity markets of Latin America. The index includes securities traded in Mexico, Brazil, Chile, Colombia, Peru and Argentina.
The new benchmark index
From the Effective Date the benchmark index of the Fund will be MSCI EM Latin America 10/40 Index. The name of the Fund will not change (contrary to the notice issued on 16 September 2011). MSCI EM Latin America 10/40 Index offers an exhaustive representation of the emerging Latin American markets (Brazil, Chile, Colombia, Mexico, Peru) by targeting all companies with a market capitalisation within the top 85% of their investable equity universe, subject to a global minimum size requirement. It is based on the Global Investable Market Indices methodology. As an addition, this Index will be weighted and rebalanced in accordance with MSCI’s 10/40 Index Methodology, which is subject to the UCITS requirements.
Reason for the change of benchmark index
iShares is committed to continually enhance its existing product suite. The change to the benchmark index is being made to reduce tracking error and therefore improve the ability of the Fund to achieve its investment objective. The current benchmark index constituent weightings cannot currently be fully replicated by the Fund without breaching the UCITS spread limits. As MSCI EM Latin America 10/40 Index operates using the MSCI UCITS compliant 10/40 index methodology, this will enable the Fund to replicate the index more closely whilst ensuring compliance with the UCITS spread limits.
Source: ETFWorld – iShares
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