ETP Landscape Industry Summary April 2012

The opinions expressed are as of April 30th, 2012 and may change as subsequent conditions vary. FOR PROFESSIONAL INVESTORS.

Global ETP monthly overview •

Global results at a glance: (US$bn)

Month-end AUM

Mar-12

Dec-11

Apr-11

1,716

1,728

1,525

1,671

0.6

16.2

15.8

25.4

4,490

4,450

4,221

3,819

Monthly Global NNA (US$bn) Apr-12

$0.6

Mar-12

$16.2

Feb-12

$15.6

Jan-12

$33.5

April 2012 monthly flow highlights (US$bn)

Dec-11

$15.8

– The ETP industry gathered a modest net $0.6bn in April powered by strong inflows of $5.7bn in fixed income products offset by developed markets equity ETP outflows of ($4.9bn).

Nov-11

($0.1)

Oct-11

$29.1

Sep-11

$7.7

Aug-11

$5.3

Jul-11

$25.0

Jun-11

$18.1

– Inflows into fixed income ETPs continued for the 16th month running with the category gathering a healthy $5.7bn as compared to $6.0bn in March and $4.7bn in February.

May-11

$4.2

Apr-11

$25.4

– Outflows of ($4.9bn) from developed markets equity funds came primarily from Europe where ETPs relinquished ($5.3bn) driven by German country funds.

Mar-11

$18.0

Feb-11

$10.9

Jan-11

$13.9

Monthly NNA # of ETPs

•

Apr-12

– Investment grade corporate fixed income ETPs attracted another $2.1bn and high yield garnered $1.1bn in April. The spread between US high yield bonds and 10 year Treasuries began the month at 500bps, peaked at 543bps and ended at 521bps.1 – April flows slowed considerably in comparison to monthly trends in Q1 when the industry attracted $65.4bn.

(10)

Equity

0

10

Fixed income

20

30

40

Commodities and other

1 Bloomberg (CSI BARC Index) – represents BarCap US Corporate HY YTW - 10-Yr Treasury Spread ETP = Exchange traded products. NNA = Net New Assets. AUM = Assets Under Management. Global ETP NNA (or flows) are approximated by combining the United States, Europe, Canada, Asia Pacific and Latin America. In April 2012, prior period global flows were re-stated to include the most recent data available for Asia Pacific (note – some products continue to be reported on a lag). Note: Data as at end of April 2012 or the most recent period available. Source: BlackRock Investment Institute, Bloomberg, National Stock Exchange (NSX).

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1

Global ETP YTD overview

•

April YTD 2012 flow highlights (US$): – Year-to-date inflows of $66.0bn through April 2012 are on par with 2011’s comparable total of $68.2bn. – Fixed income flows continue to break historical records scaling to a new high of $25.5bn for the January-April period. The previous best January-April period was in 2009 with $21.6bn. The bond category leads all others YTD with $25.5bn or 39% of total ETP inflows, blowing past last year’s comparable YTD figure of $10.4bn. – Investment grade corporate ETPs attracted $10.6bn YTD, fast approaching 2011’s full year total of $11.4bn. High yield ETPs pulled in $9.0bn YTD, surpassing 2011’s total of $8.5bn. The two categories represent 77% of 2012 YTD fixed income inflows.

Jan-Apr 2012

Jan-Apr 2011

Annual 2011

66.0

68.2

173.4

Fixed Income

25.5

10.4

49.9

Developed Markets Equity

18.8

47.5

102.0

Emerging Markets Equity

13.0

0.7

9.7

Commodities

5.9

7.1

8.9

Global ETP NNA by exposure (US$bn) Global ETP Total

YTD 2011 versus YTD 2012 Global ETP NNA US$bn

YTD 2012 NNA: US$66.0bn*

30 25

– Developed markets equity flows1 dropped off from the prior year level with the category gathering $18.8bn through April 2012 vs. $47.5bn through April 2011. – Emerging markets equity products saw tepid flows in March and April, but 2012 YTD inflows of $13.0bn still trounced 2011’s comparable results when the category collected a modest $0.7bn through April.

20 15 10 5 0 -5 -10

– Europe equity ETPs relinquished ($5.9bn) YTD concentrated in April outflows from German DAX products.

North America equity

Europe equity

Other Developed Equity YTD 2012 NNA

Emerging markets equity

Fixed income

Commodities

Others

YTD 2011 NNA

1 – The developed markets equity category includes North America equity, Europe equity and other developed equity. ETP = Exchange traded products. NNA = Net New Assets. AUM = Assets Under Management. Global ETP NNA (or flows) are approximated by combining the United States, Europe, Canada, Asia Pacific and Latin America. In April 2012, prior period global flows were re-stated to include the most recent data available for Asia Pacific (note – some products continue to be reported on a lag). Note: Data as at end of April 2012 or the most recent period available. Source: BlackRock Investment Institute, Bloomberg, National Stock Exchange (NSX), Strategic Insights Simfund

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2

Global ETP investment grade and high yield corporate bond flows •

April 2012 fixed income flow highlights (US$bn): – Investment grade and high yield corporate bond ETPs gathered $2.1bn and $1.1bn respectively in April 2012, together representing 55% of net fixed income inflows of $5.7bn for the month.

Investment grade and high yield corporate bond ETPs US$bn

% of fixed income ETP NNA

Monthly Net New Asset Trends

5

180%

4

140%

3 100%

– These two corporate bond categories gathered $19.6bn year to date or 77% of all fixed income ETP YTD flows. – Investment grade and high yield corporate bond ETP assets grew 55% over the last 12 months from $62.0bn in April 2011 to $96.4bn in April 2012. – Yield to worst on US high yield bonds dropped to 707 basis points (bps) at monthend April from 836 bps at year-end 2011.1 Spreads between US high yield bonds and 10 year Treasuries stood at 521 bps at month end. 2

2 60% 1 20%

0 -1

-20% Apr-11

May-11

Jun-11

Jul-11

Aug-11

Sep-11

Investment Grade Corp ETPs AUM (US$bn)

Oct-11

Nov-11

Dec-11

Jan-12

High Yield ETPs

Feb-12

Mar-12

Apr-12

% of Fixed Income ETP NNA

Assets Under Management (AUM) Trend

110 100 90 80 70 60 50 40 30 20 A pr-11

M ay-11

Jun-11

Jul-11

A ug-11

Sep-11

Oct-11

No v-11

Investment Grade Corporate ETPs

Dec-11

Jan-12

Feb-12

M ar-12

A pr-12

High Yield ETPs

1 – Source: Bloomberg (LF98YW Index) – represents yield to worst on Barclays Capital US Corporate High Yield index 2: Bloomberg (CSI BARC Index) – represents BarCap US Corporate HY YTW - 10-Yr Treasury Spread. ETP = Exchange traded products. NNA = Net New Assets. AUM = Assets Under Management. Global ETP NNA (or flows) are approximated by combining the United States, Europe, Canada, Asia Pacific and Latin America. In April 2012, prior period global flows were re-stated to include the most recent data available for Asia Pacific (note – some products continue to be reported on a lag). Source: BlackRock Investment Institute, Bloomberg, National Stock Exchange (NSX)

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3

Top 10 ETPs launched in 2012 ranked by AUM Commentary (US$) •

•

•

(US$mn)

Bloomberg Ticker

Exposure

Launch Date

Apr-12 AUM

Listing Region

285 ETPs were launched this year and ended April with $5.4bn of AUM.

PIMCO Total Return Exchange-Traded Fund

BOND US

Fixed income

Feb-12

665

US

iShares Barclays U.S. Treasury Bond Fund

GOVT US

Fixed income

Feb-12

319

US

Among the top 10 new products ranked by AUM, four are listed in Europe, four in Asia Pacific and two in the US

J.P. Morgan Macro Hedge US TR Source ETF

MHUU LN

Alternatives

Feb-12

238

Europe

Kyobo AXA Power K200 ETF

152870 KS

EM equity

Feb-12

234

Asia Pacific

Hanwha Arirang 200 ETF (Equity)

152100 KS

EM equity

Jan-12

200

Asia Pacific

UBS-ETF Markit iBoxx EUR Germany 7-10 - A

UEFP GY

Fixed income

Jan-12

149

Europe

1571 JP

Japan Equity

Apr-12

129

Asia Pacific

J.P. Morgan Macro Hedge Dual TR Source ETF

MHDU LN

Alternative

Mar-12

126

Europe

UBS-ETF Markit iBoxx EUR Germany 1-3 - A

UEFL GY

Fixed Income

Jan-12

124

Europe

153130 KS

Fixed Income

Feb-12

123

Asia Pacific

Jan-Apr-12

3,133

All

Thematically, the top ten newly launched ETPs span a number of asset classes with the largest concentration in fixed income (five products), then alternatives (two products), emerging markets equity (two products), and one product in Japan equity.

NEXT FUNDS Nikkei 225 Inverse Index ETF

Samsung KODEX KRW Cash ETF 275 additional ETPs Total - 285 ETPs

5,439

ETP = Exchange traded products. AUM = Assets Under Management. Data as at end of April 2012. Source: BlackRock Investment Institute, Bloomberg, National Stock Exchange (NSX).

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4

Top 10 ETPs worldwide ranked by YTD net new assets (NNA) Commentary •

•

•

•

Three of the top five asset gathering ETPs offer exposure to investment grade and high yield corporate bonds. Two of the top five offer exposure to emerging markets equities. Vanguard has the highest number of top asset gathering ETPs with four of the top ten. iShares has three.

Thematically, the top ten asset gathering ETPs span a number of asset classes including emerging markets equity, US real estate and dividend equity, US large-cap equity, corporate bonds, high yield bonds, volatility products and developed markets EAFE equity. All of the top ten are US-listed products.

ETPs as at End of Apr 2012 (US$mn)

Bloomberg Ticker

YTD-2012 NNA

Apr-12 AUM

Vanguard MSCI Emerging Markets ETF

VWO US

7,041

53,762

iShares iBoxx $ High Yield Corporate Bond Fund

HYG US

3,991

15,167

iShares iBoxx $ Investment Grade Corp Bond Fund

LQD US

3,021

20,629

SPDR Barclays Capital High Yield Bond ETF

JNK US

2,783

12,075

iShares MSCI Emerging Markets Index Fund

EEM US

2,011

38,240

iPath S&P 500 VIX Short-Term Futures ETN

VXX US

1,999

1,792

Vanguard REIT ETF

VNQ US

1,727

12,283

PowerShares QQQ Trust

QQQ US

1,642

32,649

Vanguard Dividend Appreciation ETF

VIG US

1,570

11,151

Vanguard MSCI EAFE ETF

VEA US

1,486

8,536

ETP = Exchange traded products. NNA = Net New Assets. AUM = Assets Under Management. Note: Data as at end of April 2012 or the most recent period available. Source: BlackRock Investment Institute, Bloomberg, National Stock Exchange (NSX)

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Top 10 ETPs worldwide ranked by AUM Commentary •

State Street has the top two global products ranked by AUM.

•

iShares has the largest number of top products with five of the top ten. Vanguard and State Street each have two.

•

Thematically, the top ten AUM ETPs span a number of asset classes with the largest concentration in United States broad equity (four products), emerging markets equity (two products), fixed income (two products) and one product each in gold and EAFE equity.

•

All of the top ten are US-listed products.

Bloomberg Ticker

AUM

YTD-12 NNA

1-month ADV

SPDR S&P 500

SPY US

103,103

(2,628)

19,358

SPDR Gold Trust

GLD US

68,491

1,439

1,442

Vanguard MSCI Emerging Markets ETF

VWO US

53,762

7,041

832

iShares MSCI Emerging Markets Index Fund

EEM US

38,240

2,011

1,979

iShares MSCI EAFE Index Fund

EFA US

36,507

(3,232)

941

PowerShares QQQ Trust

QQQ US

32,649

1,642

3,111

iShares S&P 500 Index Fund

IVV US

30,167

963

395

iShares Barclays TIPS Bond Fund

TIP US

22,738

(11)

112

Vanguard Total Stock Market ETF

VTI US

21,612

(152)

121

iShares iBoxx $ Investment Grade Corporate Bond

LQD US

20,629

3,021

202

ETPs as at End of Apr 2012 (US$mn)

ETP = Exchange traded products. NNA = Net New Assets. AUM = Assets Under Management. ADV = Average Daily Volume. Note: Data as at end of April 2012 or the most recent period available. Source: BlackRock Investment Institute, Bloomberg, National Stock Exchange (NSX)

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Global ETP assets by type of exposure April 2012 flow highlights (US$bn): •

Global ETPs delivered total AUM growth of $191.1bn so far in 2012 driven by $66.0bn of inflows and $125.1bn of favorable market and exchange rate movements.

•

Fixed income was the top asset gathering category for the year with $25.5bn or 39% of total net new assets.

•

North America Equity attracted $21.6bn YTD or 33% of total ETP inflows.

•

Europe equity ETPs relinquished ($5.9bn) YTD concentrated in April outflows from German DAX products. 2012 YTD Change

Exposure (US$bn)

AUM

% Market Share

Equity

1,204

70.2

(4.4)

31.8

141

13

North America – equity

651

38.0

(1.1)

21.6

82

14

Emerging markets – equity

229

13.3

0.4

13.0

35

18

Europe – equity

116

6.8

(5.3)

(5.9)

5

4

Asia Pacific – equity

86

5.0

0.6

0.1

8

10

Global (ex-US) – equity

71

4.2

0.1

0.4

6

10

Global – equity

51

3.0

0.8

2.5

4

9

Fixed income

289

16.8

5.7

25.5

31

12

Commodities

191

11.1

(0.9)

5.9

17

10

Alternative

6.6

0.4

0.2

4.5

3

64

Currency

6.8

0.4

(0.02)

(1.68)

(2)

(20)

18.5

1.1

0.03

(0.01)

2

11

1,715

100.0

0.63

66.0

191

12

Others Total

Apr-12 Monthly NNA

2012 YTD NNA

AUM

% AUM

AUM % Market Share as at end of April 2012

Developed Equity Equity 56.8% Developed 56.8% Emerging markets equity 13.3%

Emerging markets equity 13.3% Fixed Income 16.8%

Fixed Income 16.8% Commodities 11.1%

Commodities 11.1% Others 1.9%

Others 1.9% ETP = Exchange traded products. NNA = Net New Assets. AUM = Assets Under Management. Global ETP NNA (or flows) are approximated by combining the United States, Europe, Canada, Asia Pacific and Latin America. In April 2012, prior period global flows were re-stated to include the most recent data available for Asia Pacific (note – some products continue to be reported on a lag). Note: Data as at end of April 2012 or the most recent period available. Source: BlackRock Investment Institute, Bloomberg, National Stock Exchange (NSX), Strategic Insights Simfund, Bank of Israel

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Global ETP NNA by listing region April NNA by Listing Region

Commentary

(US$bn)

•

US listed ETPs account for 70% of global ETP AUM and 89% of global YTD NNA.

•

Because of the outflows in April, European listed ETPs contributed $2.2bn YTD, less than the $5.5bn attracted by Canadian listed ETPs. Canada’s ETP industry accounts for $50bn of AUM, or 15.4% of Europe’s $325.1bn size of the industry.

•

Asia Pacific

$1.1

Latin America

$0.6

Canada

$0.7

Europe

($5.0)

Latin America and Asia Pacific YTD flows are flat.

By Listing Region (US$bn)

Apr-2012 NNA

YTD 2012 NNA

Apr-2012 AUM

Number of Products

Global ETP Total

0.6

66.0

1,715

4,490

3.2

58.8

1,206

1,458

Europe

(5.0)

2.2

325

1,907

Canada

0.7

5.5

50

252

Latin America

0.6

(0.2)

11

32

Asia Pacific

1.1

(0.4)

102

477

Not Available

Not Available

21

364

US

US

(6)

Middle East and Africa

$3.2

(3)

0

3

ETP = Exchange traded products. NNA = Net New Assets. AUM = Assets Under Management. Global ETP NNA (or flows) are approximated by combining the United States, Europe, Canada, Asia Pacific and Latin America. In April 2012, prior period global flows were re-stated to include the most recent data available for Asia Pacific (note – some products continue to be reported on a lag). Source: BlackRock Investment Institute, Bloomberg, National Stock Exchange (NSX)

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ETPs vs. mutual funds - 2012 NNA comparison •

ETP vs. mutual fund NNA (US$bn): – April Flows: Both ETPs and mutual funds saw recent outflows in the equity category. For the period of April 1st-30th, equity ETPs surrendered ($4.4bn). For the four weeks ended April 25th, equity mutual funds experienced redemptions of ($6.9bn).1 – April flows: Both ETPs and mutual funds saw recent inflows into the fixed income category. For the period of April 1st-30th, fixed income ETPs gathered $5.7bn. For the four weeks ended April 25th, fixed income mutual funds attracted $11.5bn.1 – Q1 2012: The ETP industry had its best Q1 ever pulling in net new assets of $65.4bn while the mutual fund industry gathered $101.4bn.1 – Q1 2012: Mutual fund NNAs in Q1 were driven by fixed income with $104.0bn while the ETP industry experienced more broad-based inflows across the fixed income and equity categories with $36.3bn and $19.7bn, respectively.

ETPs

Mutual Funds1

65.4

101.4

Equity

36.3

(17.3)

Fixed Income

19.7

104.0

Commodities and Others

9.4

14.7

Q1 2012 global flows (US$bn) Global NNA Totals

Q1 2012 Global NNA - Mutual Funds (ex-money market) vs. ETPs (US$bn) 120

Mutual Funds

ETPs

80

40

0

Equity

Fixed Income

Commodities & Others

-40 1 Global

mutual fund data (excluding Money Market and excluding ETFs) sourced from EPFR. ETP = Exchange traded products. NNA = Net New Assets. AUM = Assets Under Management. Global ETP NNA (or flows) are approximated by combining the United States, Europe, Canada, Asia Pacific and Latin America. In April 2012, prior period global flows were re-stated to include the most recent data available for Asia Pacific (note – some products continue to be reported on a lag). Note: Data as at end of April 2012 or the most recent period available. Source: BlackRock Investment Institute, Bloomberg, National Stock Exchange (NSX), EPFR

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ETPs vs. mutual funds – annual global flows comparison •

2011 flows review (US$): – The Exchange Traded Products (ETP) industry attracted net new assets in 2011 of $173.4bn as compared to outflows of ($54.3bn) for the mutual fund industry. 1 – The largest divergence was in equity products where investors shifted ($172.4bn) out of mutual funds while infusing $111.7bn into ETPs.

2011 Global ETP/MF Flows (US$bn)

ETPs

Mutual Funds1

Global NNA Totals

173.4

(54.3)

Equity

111.7

(172.4)

Fixed Income

49.9

104.2

Commodities and Others

11.8

13.9

Fixed Income Annual NNA - Mutual Funds vs. ETPs

Equity Annual NNA - Mutual Funds vs. ETPs

2011

2011

2010

2010

2009

2009

2008

2008

2007

2007

2006

2006

2005

2005

(300)

(200)

(100)

0

100

Fixed Income MFs

200

300

400

Fixed Income ETPs

500

600

(600)

(400)

(200)

0

Equity Mutual Funds

200

400

600

Equity ETPs

1

Mutual fund flows (excluding Money Market and excluding ETFs) and 2005-2008 ETP flows are sourced from Strategic Insight Simfund. ETP = Exchange traded products. NNA = Net New Assets. AUM = Assets Under Management. Global ETP NNA (or flows) are approximated by combining the United States, Europe, Canada, Asia Pacific and Latin America. In April 2012, prior period global flows were re-stated to include the most recent data available for Asia Pacific (note – some products continue to be reported on a lag). Source: BlackRock Investment Institute, Bloomberg, National Stock Exchange (NSX), Strategic Insights Simfund

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About us

About the ETP Landscape: Industry Summary report For inquiries, contact [email protected] The “ETP Landscape: Industry Summary” report provides a snapshot of ETP assets under management and asset flows at a combined global level as of the most recent month-end period. The ETP (or exchange traded product) category encompasses any portfolio exposure security that trades intra-day on an exchange. The data for this report are captured from a number of sources by the BlackRock Investment Institute including provider websites, fund prospectuses, provider press releases, provider surveys, Bloomberg, the National Stock Exchange, Strategic Insight Simfund, Wind and the Bank of Israel. All amounts are reported in US dollars. Net new asset (NNA) flows are derived using daily net asset values and shares outstanding using the most recent data we can capture at month-end. For products with cross-listings, we attribute NNAs and assets under management (AUM) to the primary listings. For Middle East and Africa, NNA data is not available. AUM are derived using shares outstanding and prices at the end of each month (or the closest date available). Where price is not available, we use an approximation. For ETPs listed in Israel, product level detail is not available. Product level information is aggregated by provider, asset class, exposure, region listed and replication method to produce the various analyses in the report. Subscribe To receive the ETP Landscape series of reports at no cost, please subscribe via our website at www.blackrockinternational.com/etflsubscribe. About BlackRock BlackRock is a leader in investment management, risk management and advisory services for institutional and retail clients worldwide. At March 31, 2012, BlackRock’s AUM was $3.684 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® (exchangetraded 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 March 31, 2012, the firm has approximately 9,900 employees in 27 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. About the BlackRock Investment Institute The BlackRock Investment Institute is a global platform that leverages BlackRock’s expertise in markets, asset classes and client segments to generate investment insights that seek to enhance the firm’s ability to create a better financial future for clients. Launched in 2011, the Institute hosts a series of events through the BlackRock Investment Forum that foster debate around key investment themes. The Institute’s goal is to produce a flow of information that makes BlackRock’s portfolio managers better investors and helps deliver positive investment results for our clients. BlackRock’s highly regarded ETP research is an reputable source of objective, trusted data and analysis for our clients, the firm, and the ETP industry as a whole.

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•

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Disclaimer (continued) For investors in Bahrain: This document has not made and will not make any invitation to the public in the Kingdom of Bahrain and will not be issued, disseminated, or made available to the public generally. For investors in Belgium: This document is directed at Professional Investors only as defined by the Belgian Financial Services and Markets Authority. For investors in Denmark: This document is directed at Professional Investors in Denmark only and no other person should rely upon the information contained within it. For investors in Finland: This document is directed at Professional Investors only as defined by the Finnish Mutual Funds Act (Sijoitusrahastolaki 29.1.1999/48), as amended. For investors in France: This document is directed at Professional Investors in France only and no other person should rely upon the information contained within it. For investors in Germany: This document is for access by Professional Clients only in Germany as defined by the German Banking Act, credit institutions and financial services providers, private or public insurance companies, investment companies and their investment managers as well as pension funds and their administrators. For investors in Guernsey: This document has not been approved by the Guernsey Financial Services Commission and is not to be distributed to private investors in or from within the Bailiwick of Guernsey. For investors in Hong Kong: Some of the funds mentioned herein have not been registered with the Securities and Futures Commission for offering or distribution in Hong Kong. Accordingly, this material may not be circulated or distributed, nor may the funds be offered or sold whether directly or indirectly, to any person in Hong Kong other than to a Professional Investor as defined in the Securities and Futures Ordinance ("SFO") (Cap. 571 of the laws of Hong Kong) and any regulations there under. For investors in Iceland: This document is directed at Professional Investors in Iceland only and no other person should rely upon the information contained within it. This document has been issued to you for your use only and exclusively for the purposes of the described investment opportunities. Accordingly, this document and relevant information may not be used for any other purpose or passed on to any other person in Iceland. Notice to residents in India: This document is intended for information purposes only and does not constitute investment advice or an offer to sell or solicitation of an offer to buy the funds described herein. This document has been provided by BlackRock in a private and confidential manner to financial intermediaries only upon their request. The funds mentioned herein have not been registered with any authorities in India. For investors in Ireland: This document is directed at Professional Investors in Ireland only and no other person should rely upon the information contained within it.

FOR PROFESSIONAL INVESTORS.

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Disclaimer (continued) For investors in Israel: BlackRock Advisors (UK) Limited is not licensed under Israel's Regulation of Investment Advice, Investment Marketing and Portfolio Management Law, 5755-1995. This document has not been approved by the Israel Securities Authority and will only be distributed to Israeli residents in a manner that will not constitute "an offer to the public" under sections 15 and 15a of the Israel Securities Law, 5728-1968 (the "Securities Law") or section 25 of the Joint Investment Trusts Law, as applicable. The document is being offered to those categories of investors listed in the First Addendum (the "Addendum") to the Securities Law, ("sophisticated Investors"); in all cases under circumstances that will fall within the private placement or other exemptions of the Joint Investment Trusts Law, the Securities Law and any applicable guidelines, pronouncements or rulings issued from time to time by the Israel Securities Authority. This document may not be reproduced or used for any other purpose, nor be furnished to any other person other than those to whom copies have been sent. Nothing in this document should be considered investment advice or investment marketing as defined in the Regulation of Investment Counselling, Investment Marketing and Portfolio Management Law, 5755-1995. For investors in Italy: This document is directed at Professional Investors in Italy only and no other person should rely upon the information contained within it. Notice to residents in Japan: This document is solely for educational purposes and does not constitute advertisement of financial services targeted at investors in Japan. This document is intended for information purposes only and does not constitute investment advice or an offer to sell or solicitation of an offer to buy the funds described herein. This document has been provided by BlackRock in a private and confidential manner to Qualified Institutional Investors (as defined in the Financial Instruments and Exchange Law of Japan) only upon their request. For investors in Jersey: This document has not been approved by the Jersey Financial Services Commission and is not to be distributed to private investors in or from within Jersey. For investors in the State of Kuwait: This document is directed at Professional Investors in the State of Kuwait only and no other person should rely upon the information contained within it. For institutional and professional investors only in Latin America: In Latin America, for Institutional and Professional Investors only. This material is solely for educational purposes only and does not constitute an offer or a solicitation to sell or a solicitation of an offer to buy any shares of any securities (nor shall any such securities be offered or sold to any person) in any jurisdiction within Latin America in which an offer, solicitation, purchase or sale would be unlawful under the securities law of that jurisdiction. It is possible that all or some of the funds mentioned or inferred to in this material have not been registered with the securities regulator of Brazil, Chile, Colombia, Mexico and Peru or any other securities regulator in any Latin American country, and thus, might not be publicly offered, purchased or sold within any such country. The securities regulators of such countries have not confirmed the accuracy of any information contained herein. No information discussed herein can be provided to the general public in Latin America. For investors in Luxembourg: This document has not been approved by the Luxembourg authority and is not to be distributed to private investors in or from within Luxembourg. For investors in Netherlands: This document has not been approved by the Netherlands authority and is not to be distributed to private investors in or from within the Netherlands.

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Disclaimer (continued) For investors in Norway: This document is directed at Professional Investors in Norway only and no other person should rely upon the information contained within it. Professional Investors means; eligible counterparties (certain regulated entities within the financial sector), or Legal entities meeting two of the three following criteria: a) Balance sheet of at least €20 million; b) Net turnover of at least €40 million; and c) Equity of at least €2 million or Other institutional investors whose main purpose is to invest in financial instruments. For investors in Portugal: This document has not been approved by the Comissão do Mercado dos Valores Mobiliários (the “CMVM”) and is not to be distributed to private investors in or from within Portugal.

Qatar: Persons or entities to whom this document has been issued understands, acknowledges and agrees that this document has not been approved by the Qatar Central Bank, or any other government agency or authority in Qatar. Oman: Persons or entities to whom this document has been issued understands, acknowledges, and agrees that his document has not been registered or approved by the Central Bank of Oman or any other government agency or authority in Oman. For investors in the Kingdom of Saudi Arabia: This document is directed at Professional Investors in the Kingdom of Saudi Arabia only and no other person should rely upon the information contained within it. Notice to residents in Singapore: This document is provided by BlackRock (Singapore) Limited (company registration number: 200010143N) for use with institutional investors only. This document has not been registered as a prospectus with the Monetary Authority of Singapore (MAS). Some of the funds mentioned herein have not been registered with the MAS for distribution in Singapore. Accordingly, this and any other document or material in connection with the offer or sale of the Shares may not be circulated or distributed, nor may the Shares be offered or sold, whether directly or indirectly, to any person in Singapore other than (i) to an institutional investor pursuant to Section 304 of the Securities and Futures Act (SFA) or (ii) otherwise pursuant to, and in accordance with the conditions of, any other applicable provision of the SFA. First sales of the Shares acquired pursuant to Section 304 of the SFA are subject to the requirements under Section 304A of the SFA. For investors in Spain: This document has not been approved by the Spanish Securities Market Commission and is not to be distributed to private investors in or from within Spain. For investors in Switzerland This document is directed at “Qualified Investors” in Switzerland only and no other person should rely upon the information contained within it. For investors in Sweden This document is directed at Professional Investors in Sweden only and no other person should rely upon the information contained within it. Notice to residents in Thailand: This document is intended for information purposes only and does not constitute investment advice or an offer to sell or solicitation of an offer to buy the funds described herein. This document has been provided by BlackRock in a private and confidential manner to institutional investors only upon their request. The funds mentioned herein have not been registered with any authorities in Thailand, and accordingly, this document may not be circulated or distributed, nor may the shares of these funds be offered or sold whether directly or indirectly, to any person in Thailand.

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Disclaimer (continued) For investors in the UAE: BlackRock Advisors (UK) Limited is regulated by the Dubai Financial Services Authority in the DIFC and authorised and regulated by the Financial Services Authority in the UK, has issued this document for access by Professional Clients and no other person should rely upon them information contained within it. The financial services to which the document relates are only available to Professional Clients. For investors in the United Kingdom: This document is directed at Professional Clients only within the meaning of the rules of the FSA.

For investors in the United States: Information on funds and securities is provided by BlackRock and is strictly for informational purposes. It should not be deemed an offer to sell or a solicitation of an offer to buy shares of any securities, including the iShares Products, that are included in this report. Notice to residents in Vietnam: This document is intended for information purposes only and does not constitute investment advice or an offer to sell or solicitation of an offer to buy the funds described herein. This document has been provided by BlackRock in a private and confidential manner to institutional investors only upon their request. The funds mentioned herein have not been registered with any authorities in Vietnam, and accordingly, this document may not be circulated or distributed, nor may the shares of these funds be offered or sold whether directly or indirectly, to any person in Vietnam.

BlackRock® is a trademark of the BlackRock Group registered, amongst others, in the United States, the European Union and other jurisdictions around the world. The trademarks and service marks contained herein are the property of their respective owners. Third-party data providers make no warranties or representations of any kind relating to the accuracy, completeness, or timeliness of the data they provide and shall not have liability for any damages of any kind relating to such data. © 2012 BlackRock Advisors (UK) Limited. Registered Company No 00796793. All rights reserved. Calls may be monitored or recorded. BLK-0229-0412

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