IShares Treasury ETF (ASX: IGB)

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IShares Treasury ETF (ASX: IGB)
iShares Treasury ETF
(ASX: IGB)

Product Disclosure Statement
Dated 2 March 2012

iShares Treasury ETF
ARSN 154 626 865
BlackRock Investment Management (Australia) Limited
ABN 13 006 165 975
Australian Financial Services Licence No 230523
IShares Treasury ETF (ASX: IGB)
Purpose of this SPDS No. 4
 Supplementary Product                                    1. Fund name change
 Disclosure Statement No. 4                               Effective from 29 September 2014 the Fund’s name changed
                                                          from “iShares UBS Treasury ETF” to “iShares Treasury ETF”.

 iShares Treasury ETF                                     As a result, effective from 29 September 2014, all references
                                                          in the PDS to “iShares UBS Treasury ETF” are deleted and
 (ASX: IGB)                                               replaced with “iShares Treasury ETF”.
 ARSN 154 626 865                                         2. Change to Index provider
 iShares Treasury ETF (known prior to 29 September 2014   As a result of Bloomberg Finance L.P.’s’ acquisition of certain
 as iShares UBS Treasury ETF)                             Australia bond indices, effective from 29 September 2014 the
                                                          following amendments are made to the PDS:
 BlackRock Investment Management (Australia) Limited
 ABN 13 006 165 975                                       a. All references in the PDS to the below UBS index names are
 Australian Financial Services Licence No 230523             deleted and replaced with the applicable below Bloomberg
                                                             index name:
 Date: 29 September 2014
                                                                 UBS Index Name                  Bloomberg Index Name
This    Supplementary      Product    Disclosure                                              Bloomberg AusBond Treasury
Statement No. 4 is dated 29 September 2014                     UBS Treasury Index                            SM
                                                                                                       Index
(“SPDS No. 4”) and updates the Product                    UBS Composite Bond Index
                                                                                        TM        Bloomberg AusBond
                                                                                                                  SM
Disclosure Statement dated 2 March 2012                                                            Composite Index
(“PDS”), as amended by Supplementary Product              b. All references in the PDS to “UBS” are deleted and replaced
Disclosure Statement dated 24 December 2012                  with “Bloomberg”.
(“SPDS No. 1”), Supplementary Product                     c. Section 4.3, titled “About the Index” (on pages 5 and 6 of
Disclosure Statement No. 2 dated 4 February                  the PDS), is deleted and replaced with the following new
                                                             section 4.3:
2014 (“SPDS No. 2”) and Supplementary Product
Disclosure Statement No. 3 dated 1 July 2014                 “4.3 About the Index
                                                                                                           SM
(“SPDS No. 3”) for the iShares Treasury ETF (the             The Bloomberg AusBond Treasury Index is designed to
“Fund”, known prior to 29 September 2014 as                  measure the performance of the Australian bond market
                                                             which meets certain investment criteria and covers fixed
iShares UBS Treasury ETF). This SPDS No. 4                   interest bonds issued in the Australian debt market under
must be read in conjunction with the PDS, SPDS               Australian law.
No. 1, SPDS No. 2 and SPDS No. 3.                                                                          SM
                                                             The Bloomberg AusBond Treasury Index , a sub-index of
                                                                                                       SM
A copy of this SPDS No. 4 has been lodged with               the Bloomberg AusBond Composite Index , is an index of
                                                             valuations of the debt securities which are included in it.
the Australian Securities and Investments                    Below is a description of the manner in which the debt
Commission (“ASIC”) and released to the                      securities included are determined and also a description of
Australian Securities Exchange (“ASX”). Neither              the manner in which valuations are determined.
ASIC nor ASX take any responsibility for the                 The Bloomberg AusBond Treasury Index
                                                                                                                SM
                                                                                                                     has been
contents of this SPDS No. 4.                                 calculated since 31 March 1988.
This SPDS No. 4 sets out the following changes               Which debt securities can be included in the Bloomberg
                                                                                   SM
to the Fund:                                                 AusBond Treasury Index ?
                                                             The debt securities which are included in the Bloomberg
                                                                                          SM
                                                             AusBond Treasury Index           are selected by Bloomberg
                                                             based on eligibility criteria. The key eligibility criteria for the
                                                             debt securities which are included in the Bloomberg
                                                                                       SM
                                                             AusBond Treasury Index are that the debt securities:
                                                             ►   are of a minimum quality which is determined by
                                                                 reference to levels published by independent service
                                                                 providers and bond rating firms. In addition, if any debt
                                                                 securities fall below that minimum quality then those
                                                                 debt securities are removed and the Bloomberg
                                                                                           SM
                                                                 AusBond Treasury Index       is rebalanced (as further
                                                                 described below);
                                                             ►   are issued by the Australian Treasury (Commonwealth
                                                                 Government debt securities);
                                                             ►   are denominated in Australian dollars;
►   are governed by the law of an Australian State or             d. Section 10.9, titled “Index provider disclaimer” (on page 22
        Territory or the Commonwealth of Australia;                      of the PDS), is deleted and replaced with the following new
                                                                         section 10.9:
    ►   were issued in a minimum issue size of AUD 100 million.
                                                                          “10.9 Index disclaimer
    In addition to the above, certain debt securities are
                                                             SM                                                                        SM
    excluded from the Bloomberg AusBond Treasury Index ,                  BLOOMBERG, the Bloomberg AusBond Treasury Index
                                                                                                                               SM
    these include: convertible notes, zero coupon notes, private          and Bloomberg AusBond Composite Index                      are
    placements, collateralised debt obligations, collateralised           trademarks or service marks of Bloomberg Finance L.P. and
    bond obligations and collateralised fund obligations,                 its affiliates (collectively, "Bloomberg"). Bloomberg or
    synthetic securitizations, hybrid capital securities and              Bloomberg's licensors own all proprietary right in the
                                                                                                                   SM
    perpetual securities.                                                 Bloomberg AusBond Treasury Index              and Bloomberg
                                                                                                         SM
                                                                          AusBond Composite Index . Bloomberg does not
    The different debt securities are included in the Bloomberg
                              SM                                          guarantee the timeliness, accuracy or completeness of any
    AusBond Treasury Index        on the basis of their gross
                                                                          data or information relating to the Bloomberg AusBond
    market value proportions, not on an equally weighted basis,                           SM
                                                                          Treasury Index or the Bloomberg AusBond Composite
    and these proportions can be rebalanced on a daily basis.                   SM
                                                                          Index . Bloomberg makes no warranty, express or implied,
    Such rebalancings can occur, for example, when interest is                                                               SM
                                                                          as to the Bloomberg AusBond Treasury Index or the
    received on the debt securities, the debt securities are                                                        SM
                                                                          Bloomberg AusBond Composite Index             or any data or
    redeemed or mature, or when there is a new issue of debt
                                                                          values relating thereto or results to be obtained therefrom,
    securities which are to be included in the Bloomberg
                             SM                                           and expressly disclaims all warranties of merchantability
    AusBond Treasury Index (which occurs at the beginning
                                                                          and fitness for a particular purpose with respect thereto. It
    of the following month). Rebalancing is performed on the
                                                                          is not possible to invest directly in an index. Back-tested
    basis that interest and principal received on the debt
                                                                          performance is not actual performance. To the maximum
    securities are reinvested in all of the debt securities
                                                          SM              extent allowed by law, Bloomberg, its licensors, and its and
    comprising the Bloomberg AusBond Treasury Index and
                                                                          their respective employees, contractors, agents, suppliers
    on the basis that it is performed in market value
                                                                          and vendors shall have no liability or responsibility
    proportions at the day’s closing prices. As the Bloomberg
                            SM                                            whatsoever for any injury or damages - whether direct,
    AusBond Treasury Index includes the value of reinvested
                                                                          indirect, consequential, incidental, punitive or otherwise -
    interest and principal payments made on the debt
                                                                          arising in connection with the Bloomberg AusBond Treasury
    instruments included in it, it is considered as a capital                   SM                                                 SM
                                                                          Index or the Bloomberg AusBond Composite Index or
    accumulation index - which means that it is designed to
                                                                          any data or values relating thereto - whether arising from
    measure the total return from investing in those debt
                                                                          their negligence or otherwise. Nothing in the Bloomberg
    securities.                                                                                       SM
                                                                          AusBond Treasury Index         or the Bloomberg AusBond
                                                                                            SM
    How are the       valuations   of   those    debt   securities        Composite Index shall constitute or be construed as an
    determined?                                                           offering of financial instruments or as investment advice or
                                            SM
    The Bloomberg AusBond Treasury Index is a gross market                investment recommendations (i.e., recommendations as to
    value weighted index. All debt instruments are valued by              whether or not to “buy”, “sell”, “hold”, or to enter or not to
    BVAL, Bloomberg’s securities valuation service. BVAL                  enter into any other transaction involving any specific
    provides credible, transparent and defensible valuations              interest or interests) by Bloomberg or its affiliates or a
    across a broad spectrum of financial instruments, including           recommendation as to an investment or other strategy by
    fixed income, derivatives and structured notes. These                 Bloomberg or its affiliates. Data and other information
                                                                                                                                   SM
    prices are completely independent, drawing on contributors            available via the Bloomberg AusBond Treasury Index or
                                                                                                                       SM
    relevant to the market. This broad global dataset of market           the Bloomberg AusBond Composite Index should not be
    observations is combined with market-leading analytics and            considered as information sufficient upon which to base an
    Bloomberg’s terms and conditions databases to produce                 investment decision. All information provided by the
                                                                                                                   SM
    objective third-party pricing with deep transparency into             Bloomberg AusBond Treasury Index              and Bloomberg
                                                                                                      SM
    how the prices are derived.”                                          AusBond Composite Index is impersonal and not tailored
                                                                          to the needs of any person, entity or group of persons.
                                                                          Bloomberg and its affiliates do not express an opinion on
                                                                          the future or expected value of any security or other
                                                                          interest and do not explicitly or implicitly recommend or
                                                                          suggest an investment strategy of any kind.”
                                                                      Terms used in this SPDS No. 4 have the same meaning as in
                                                                      the PDS, SPDS No. 1, SPDS No. 2 and SPDS No. 3. Prior to
                                                                      investing in the Fund, a prospective investor must take into
                                                                      account and accept the foregoing information, as well as the
                                                                      information disclosed in the PDS, SPDS No. 1, SPDS No. 2 and
                                                                      SPDS No. 3.

2                                                                    iShares Treasury ETF Supplementary Product Disclosure Statement No. 4
Supplementary Product
 Disclosure Statement No. 3
 iShares UBS Treasury ETF
 (ASX: IGB)
 ARSN 154 626 865

 BlackRock Investment Management (Australia) Limited
 ABN 13 006 165 975
 Australian Financial Services Licence No 230523

 Date: 1 July 2014

This    Supplementary     Product     Disclosure       Purpose of this SPDS No. 3
Statement No. 3 is dated 1 July 2014 (“SPDS No.        1. Changes to fee disclosure
3”) and updates the Product Disclosure                 Effective from 1 July 2014, the following amendments are
Statement dated 2 March 2012 (“PDS”), as               made to the PDS:
amended by Supplementary Product Disclosure            i.    the “Consumer Advisory Warning” within section 6.1, titled
Statement dated 24 December 2012 (“SPDS No.                  “Consumer Advisory Warning” (on page 12 of the PDS), is
1”) and Supplementary Product Disclosure                     deleted and replaced with the Consumer Advisory Warning
Statement No. 2 dated 4 February 2014 (“SPDS                 as shown below.
No. 2”) for the iShares UBS Treasury ETF (the
“Fund”). This SPDS No. 3 must be read in                                         DID YOU KNOW?
conjunction with the PDS, SPDS No. 1 and SPDS               Small differences in both investment performance and fees
                                                            and costs can have a substantial impact on your long-term
No. 2.                                                                                returns.
A copy of this SPDS No. 3 has been lodged with                 For example, total annual fees and costs of 2% of your
the Australian Securities and Investments                     account balance rather than 1% could reduce your final
Commission (“ASIC”) and released to the                       return by up to 20% over a 30 year period (for example,
                                                                       reduce it from $100,000 to $80,000).
Australian Securities Exchange (“ASX”). Neither
ASIC nor ASX take any responsibility for the                  You should consider whether features such as superior
                                                            investment performance or the provision of better member
contents of this SPDS No. 3.                                          services justify higher fees and costs.
This SPDS No. 3 sets out the following changes              You may be able to negotiate to pay lower contribution fees
to the Fund:                                                 and management costs where applicable. Ask the fund or
                                                                              your financial adviser.
                                                                               TO FIND OUT MORE
                                                            If you would like to find out more, or see the impact of the
                                                               fees based on your own circumstances, the Australian
                                                              Securities and Investments Commission (ASIC) website
                                                            (www.moneysmart.gov.au) has a managed investment fee
                                                               calculator to help you check out different fee options.
Amount
         Type of fee or cost              If you are no   If you are an                           How and when paid
                                         an Authorised     Authorised
                                           Participant     Participant
Fees when your money moves in or out of the Fund.
Establishment Fee. The fee to
                                               Nil                 Nil                               Not applicable.
open your investment.
                                                                                  The $300 fixed fee to create Units in the Fund is
                                                                               applicable only to Authorised Participants at the time of
Contribution Fee. The fee on each                          $300 to create     creation as only Authorised Participants are able to apply
amount contributed to your                     Nil          units in the                         for Units in the Fund.
investment.                                                    Fund           If you are not an Authorised Participant, you will not be
                                                                             charged a contribution fee for your initial or any additional
                                                                                                    investments.
                                                                                  The $300 fixed fee to redeem Units in the Fund is
                                                                              applicable only to Authorised Participants at the time of
                                                               $300 to        redemption as only Authorised Participants are able to
Withdrawal Fee. The fee on each
                                                            redeem units                   redeem for Units in the Fund.
amount you take out of your                    Nil
                                                             in the Fund
investment.                                                                    If you are not an Authorised Participant, you will not be
                                                                             charged a withdrawal fee for your initial or any subsequent
                                                                                              redemption of investments.
Exit Fee. The fee to close your
                                        Nil             Nil                               Not applicable.
investment.
Management costs. The fees and costs for managing your investment.
Management Fee. Until                 Current        Current      The management fee is calculated on the NAV of the Fund
Unitholders receive notice to the Management       Management       on a daily basis and is payable monthly or as otherwise
contrary, this will be charged as      Fee:            Fee:        incurred by the Fund. The deduction of the management
one management fee                  0.26% p.a.      0.26% p.a.            fee is reflected in the unit price of the Fund.
Service fees.
Switching Fee. The fee for
                                        Nil             Nil                 No specific switching fee is applicable.
changing investment options.
ii. the fee table within section 6.2, titled “Fees and other             iv. the example of annual fees and costs table and the
    costs” (on page 12 of the PDS), is deleted and replaced                  paragraph immediately below it within the “Example of
    with the fee table as shown above.                                       annual fees and costs for the Fund” subsection of section
                                                                             6.3, titled “Additional explanation of fees and costs” (on
iii. the “Alternative forms of remuneration” subsection within
                                                                             page 14 of the PDS), are deleted and replaced with the
     section 6.3, titled “Additional explanation of fees and
                                                                             example of annual fees and costs table as shown below.
     costs” (on page 14 of the PDS), is amended by adding the
     following paragraph to the end of the subsection:
    “BlackRock will only make these payments to the extent
    that they are permitted by law.”

Example of annual fees and costs for the Fund
Balance of $50,000 with a contribution of $5,000 during year
                         ►   Nil (if you are not an         For every additional $5,000 you put in, you will be charged:
                             Authorised Participant); or    ►   $0 if you are not an Authorised Participant; or
Contribution Fee
                         ►   $300 (if you are an            ►   $300 if you are an Authorised Participant creating units in the Fund.
                             Authorised Participant
PLUS
                                                                And, for every $50,000 you have in the Fund you will be charged $130
 Management Costs                0.26% per year
                                                                                             each year.
EQUALS
                             If you had an investment of $50,000 at the beginning of the year and you put in an additional $5,000
                                                        during that year you would be charged fees of:
Cost of Fund
                                                                         $300 + $130 = $430.
                          What it costs you will depend on whether you are an Authorised Participant and the fees you negotiate.
Please note this is an example. In practice, the actual investment balance of an investor will vary and the actual fees we charge are based on
the value of the Fund, which also fluctuates. The amounts assume a constant investment of $50,000 throughout the year and do not take into
account any additional contributions made during the year. Management Fees will also be charged in relation to additional contributions.

2                                                                  iShares UBS Treasury ETF Supplementary Product Disclosure Statement No. 3
2. Change to Privacy Policy                                           We take reasonable steps to ensure that any recipients of your
                                                                      personal information do not breach the privacy obligations
A number of changes to Australia’s privacy laws have come
                                                                      relating to your personal information.
into effect designed to set standards, rights and obligations in
connection with personal information we hold about you.               We, BlackRock, Inc. and its related bodies corporate may use
                                                                      your information on occasion, to inform you by telephone,
As a result of these changes, effective from 1 July 2014, the
                                                                      electronic messages (like email), online and other means,
text under section 10.13 of the PDS, titled “Privacy Policy” (on
                                                                      about other services or products offered by us or them. We
page 23), is deleted and replaced with the following:
                                                                      may do this on an ongoing basis, but you may opt out at any
“We collect your personal information for the primary purpose         time.
of establishing and administering your investments with us,
                                                                      If you wish to opt out, update or request access to your
communicating with you and providing you with access to
                                                                      information, obtain a copy of our Privacy Policy or raise any
protected areas of our websites. We also collect some
                                                                      queries or concerns regarding privacy, you may contact our
personal information to meet our obligations, under the Anti-
                                                                      Privacy Officer by contacting our Client Services Centre on
Money Laundering and Counter-Terrorism Financing Act and
                                                                      1300 366 100 or emailing clientservices@blackrock.com.au.”
the Corporations Act.       We use and disclose personal
information to administer your investment, conduct product            3. ASIC Relief
and market research, and deal with your concerns. We collect
                                                                      Effective from 1 July 2014, the relief disclosure, as detailed
personal information through our interactions with you, as well
                                                                      within section 10.15 of the PDS, titled “ASIC Relief” (on page
as in some instances from your financial adviser or other
                                                                      24), is amended by deleting the text under the subsection titled
authorised representative, your organisation, public sources
                                                                      “Periodic Statements” (as previously inserted by SPDS No. 1)
and information brokers. BlackRock may take steps to verify
                                                                      and replacing it with the following:
information collected.
                                                                      “Under ASIC Class Order [CO 13/1200], if BlackRock is not
We are unable to process your application and provide you with
                                                                      aware of the price at which a Unitholder bought or sold Units
the requested investment without your personal information.
                                                                      on the ASX, periodic statements are not required to include
We ask that you advise us of any changes to the personal
                                                                      details of the transaction price, nor the return on investment
information you have provided. If you provide us with personal
                                                                      during the period, provided that the periodic statement
information about any other individuals (e.g. directors) you
                                                                      explains why this information is not included and describes
must ensure that they are aware of this privacy section.
                                                                      how it can be obtained or calculated.”
A Privacy Policy setting out further details of our handling of
                                                                      Terms used in this SPDS No. 3 have the same meaning as in
personal information is available upon request or from our
                                                                      the PDS, SPDS No. 1 and SPDS No. 2. Prior to investing in the
website at www.blackrock.com.au. The Privacy Policy contains
                                                                      Fund, a prospective investor must take into account and
information about how you can access and seek correction of
                                                                      accept the foregoing information, as well as the information
your personal information, about how you can complain or
                                                                      disclosed in the PDS, SPDS No. 1 and SPDS No. 2.
enquire about breaches of your privacy and about how we will
deal with your complaint or enquiry.
We may disclose your information to our related bodies
corporate and to our service providers who assist us with,
among other things, data storage and archiving, auditing,
accounting, customer contact, legal, business consulting,
banking, payment, data processing, data analysis, information
broking, research, website and technology services. Your
personal information may be disclosed to Australian and
overseas regulatory authorities on reasonable request by those
authorities. We may also disclose your information to external
parties on your behalf, such as your financial adviser, unless
you have instructed otherwise.
BlackRock operates as a global organisation and to this end,
functions generally operate from dedicated centres which also
provide shared services around the globe. Typically, personal
information collected in relation to an investment in our funds
may be disclosed to our related body corporate located
offshore currently in Singapore.          Personal information
(generally other than personal information held in relation to
individual investors) may be held within applications on our
portfolio management system or client relationship
management system which are potentially accessible by our
related body corporates in any country in which the BlackRock
Group has an office. A list of those countries is available
through a link found in our Privacy Policy. Key data is held at
locations in Australia, the United States and the United
Kingdom either at a BlackRock related party site or third party
site.

iShares UBS Treasury ETF Supplementary Product Disclosure Statement No. 3                                                           3
Supplementary Product
 Disclosure Statement No. 2
 dated 4 February 2014
 iShares UBS Treasury ETF
 (ASX: IGB)
 Dated 4 February 2014

 iShares UBS Treasury ETF (known prior to 4 February 2014
 as iShares UBS Treasury Index Fund)
 ARSN 154 626 865
 BlackRock Investment Management (Australia) Limited
 ABN 13 006 165 975
 Australian Financial Services Licence No 230523

This     Supplementary    Product   Disclosure              Purpose of this SPDS No. 2
Statement No. 2 is dated 4 February 2014                    Fund name change
(“SPDS No. 2”) and updates the Product
                                                            Effective from 4 February 2014 the Fund’s name changed from
Disclosure Statement dated 2 March 2012                     “iShares UBS Treasury Index Fund” to “iShares UBS Treasury
(“PDS”), as amended by Supplementary Product                ETF”.
Disclosure Statement dated 24 December 2012                 As a result, effective from 4 February 2014, all references in
(“SPDS No. 1”) for the iShares UBS Treasury                 the PDS to “iShares UBS Treasury Index Fund” are deleted and
Inflation ETF (the “Fund” known prior to 4                  replaced with “iShares UBS Treasury ETF”.
February 2014 as iShares UBS Treasury Index                 Terms used in this SPDS No. 2 have the same meanings as in
Fund). This SPDS No. 2 must be read in                      the PDS and SPDS No. 1. Prior to investing in the Fund, a
conjunction with the PDS and SPDS No. 1.                    prospective investor must take into account and accept the
                                                            foregoing information, as well as the information disclosed in
A copy of this SPDS No. 2 has been lodged with              the PDS and SPDS No.1.
the Australian Securities and Investments
Commission (“ASIC”) and released to the
Australian Securities Exchange (“ASX”). Neither
ASIC nor ASX take any responsibility for the
contents of this SPDS No. 2.
This SPDS No. 2 sets out the following change to
the Fund:
iShares UBS Treasury Index
 Fund (ASX: IGB)
 Supplementary Product
 Disclosure Statement
 Dated 24 December 2012

 iShares UBS Treasury Index Fund
 ARSN 154 626 865
 BlackRock Investment Management (Australia) Limited
 ABN 13 006 165 975
 Australian Financial Services Licence No 230523

This    Supplementary     Product     Disclosure       Purpose of this SPDS
Statement (“SPDS”) is dated 24 December 2012           1. Change in registered trademark ownership
and updates the Product Disclosure Statement
                                                       Ownership of the iShares® trademark has been transferred
dated 2 March 2012 (“PDS”) for the iShares UBS         within the BlackRock Group of companies from BlackRock
Treasury Index Fund (the “Fund”). This SPDS            Institutional Trust Company, N.A to BlackRock Fund Advisors.
must be read in conjunction with the PDS.              The sentence referencing iShares® as being a registered
A copy of this SPDS has been lodged with the           trademark of BlackRock Institutional Trust Company, N.A., as
                                                       disclosed at the end of the “About iShares®” section on page
Australian     Securities    and Investments           4 of the PDS is deleted in its entirety and replaced with the
Commission (“ASIC”) and released to the                following:
Australian Securities Exchange (“ASX”).
                                                       “iShares® is a registered trademark of BlackRock Fund
Neither ASIC nor ASX take any responsibility           Advisors or its affiliates.”
for the contents of this SPDS.
                                                       2. Risk disclosure
This SPDS sets out the following changes to the        The Fund’s risk disclosure, as detailed within the “Risks”
Fund:                                                  section on pages 9 to 11 of the PDS is amended by adding the
                                                       following paragraph immediately after the paragraph in the
                                                       Risks section titled “Index risk” on page 11 of the PDS:
                                                       “Index-Related Risks
                                                       In order to meet its investment objective, the Fund will seek to
                                                       achieve a return which reflects the return of the Index, as
                                                       published by the index provider. While index providers do
                                                       provide a description of what each index is designed to
                                                       achieve, index providers do not generally provide any warranty
                                                       or accept any liability in relation to the quality, accuracy or
                                                       completeness of data in respect of the their indices, nor any
                                                       guarantee that the published index will be in line with their
                                                       described benchmark index methodologies. Errors in respect
                                                       of the quality, accuracy and completeness of the data may
                                                       occur from time to time and may not be identified and
                                                       corrected for a period of time, in particular where an index is
                                                       less commonly used. During a period where an index contains
                                                       incorrect constituents, the Fund would have market exposure
                                                       to such constituents. As such, errors may potentially result in a
                                                       negative or positive performance impact to the Fund and to
                                                       Unitholders.
Supplementary Product Disclosure Statement to the                    iShares UBS Treasury Index Fund
Product Disclosure Statement dated 2 March 2012

Apart from scheduled rebalances, index providers may carry
out additional ad hoc rebalances to their benchmark indices in
order, for example, to correct an error in the selection of index
constituents. Where the index is rebalanced and the Fund in
turn rebalances its portfolio to bring it in line with the Index,
any transaction costs and market exposure arising from such
portfolio rebalancing will be borne by the Fund and, by
extension, Unitholders.
Therefore, errors and additional ad hoc rebalances carried out
by an index provider may increase the costs and market
exposure risk of the Fund.”
3. ASIC Relief
The relief disclosure, as detailed within the “ASIC Relief”
section on page 24 of the PDS is amended by adding the
following paragraph immediately after the final paragraph in
the ASIC Relief section on page 24 of the PDS:
“Periodic Statements
ASIC has granted relief under the Corporations Act so that
BlackRock is not required to provide periodic statements to
Unitholders under section 1017D(1) of the Corporations Act
for each reporting period ending on or before 1 March 2013.
For subsequent reporting periods ending before 1 January
2014, ASIC has granted relief under the Corporations Act so
that periodic statements may disclose opening balances,
closing balances, termination values, transaction details,
increases in contributions, returns on investments and
amounts paid by a Unitholder that are based on the unit net
asset value for units or the last market price for Units as at the
relevant transaction date, the date of settlement of the
transaction or other relevant date.
The ASIC relief commenced on 19 November 2012 and applies
to the Fund while Units are able to be traded on AQUA Market
of the ASX.”
Terms used in this SPDS have the same meanings as in the
PDS. Prior to investing in the Fund, a prospective investor
must take into account and accept the foregoing information,
as well as the information disclosed in the PDS.
2      iShares UBS Treasury Index Fund

iShares UBS Treasury Index Fund
Contents
1.     Before you start                                      3     8.      Distributions                                       17
1.1    The Issuer of this PDS                                 3    8.1     Receipt of income                                    17
1.2    About this Product Disclosure Statement                3    8.2     Distribution Reinvestment Plan                       17
1.3    Changes to this PDS and access to additional                8.3     Distribution on redemption                           17
       information                                            3    8.4     Tax statement                                        17
1.4    Need help?                                             3
1.5    Offer eligibility                                      4
                                                                   9.      Taxation                                            18
                                                                   9.1     Overview                                             18
2.     About iShares®                                        4     9.2     Taxation of the Fund                                 18
                                                                   9.3     Taxable income of the Fund                           18
3.     About BlackRock                                       4     9.4     Taxation of financial arrangements                   18
3.1    Responsible Entity in Australia                        4    9.5     Taxation of non-resident Unitholders                18
                                                                   9.6     Tax File Number (TFN), Exemption and Australian
4.     About the Fund                                        5             Business Number (ABN)                               18
4.1    Investment objective and Fund strategy                 5    9.7     Goods and Services Tax (GST)                        19
4.2    What the Fund invests in                               5    9.8     Taxation Reform                                     19
4.3    About the Index                                        5    9.9     Applications for redemptions by Authorised
4.4    Performance of the Index                               6            Participants                                      19
4.5    Changes to the Index                                   6    9.10    Acquisition and disposal of Units on the ASX AQUA
4.6    Rebalancing the Fund                                   6            market                                            19
4.7    Benefits of iShares                                    6
4.8    Additional Information                                 7    10.     Additional information                              20
4.9    About the AQUA Rules                                   7
                                                                   10.1    No Cooling Off Rights                               20
4.10   Announcements to ASX                                   8
                                                                   10.2    Reporting requirements                              20
4.11   Securities lending                                     8
                                                                   10.3    Legal                                               20
                                                                   10.4    Termination of the Fund                             21
5.     Risks                                                  9
                                                                   10.5    Compliance Plan                                     21
6.     Fees and other costs                                 12     10.6    Auditor                                             21
6.1    Consumer Advisory Warning                            12     10.7    Market maker                                        21
6.2    Fees and other costs                                 12     10.8    Conflicts of Interest and Related Party Information 21
6.3    Additional explanation of fees and other costs       13     10.9    Index provider disclaimer                           22
6.4    Fund performance and size                            14     10.10   Registrar                                           22
                                                                   10.11   Custody                                             23
7.     Primary market matters                               15     10.12   Receipt of instructions                             23
7.1    Applications for creations and redemptions           15     10.13   Privacy Policy                                      23
7.2    Minimum creation and redemption size                 15     10.14   Complaints                                          23
7.3    Applications for creations                           15
                                                                   10.15   ASIC Relief                                         24
7.4    Applications for redemptions                         15
                                                                   10.16   ASX Waiver                                          24
7.5    Processing of applications for creations and
       redemptions                                          15
7.6    Calculation of Unit prices                           16     11.     Corporate directory                                 25
7.7    Calculation of settlement value for creations and
       redemptions                                          16     12.     Glossary                                            26
7.8    Fund liquidity                                       16

IMPORTANT INFORMATION: Neither the performance of the Fund offered in this Product Disclosure Statement nor the repayment
of capital or any income from the Fund is guaranteed by BlackRock Investment Management (Australia) Limited, or any member of
the BlackRock Group of companies. Investment products are subject to investment risk, and possible delays in repayment and
loss of income and principal invested. This Product Disclosure Statement can only be used by investors receiving it (electronically
or otherwise) in Australia.
3

1.    Before you start                                            1.3   Changes to this PDS and access to additional
                                                                        information
1.1   The Issuer of this PDS
                                                                        Certain information in this PDS is subject to change.
      Investment in the iShares UBS Treasury Index Fund                 We will notify you of any changes or other significant
      (referred to in this Product Disclosure Statement                 events that affect the information in this PDS (and may
      ("PDS") as the “Fund”) is offered and managed by                  issue a supplementary or replacement PDS) in
      BlackRock Investment Management (Australia) Limited               accordance with our obligations under the Corporations
      ABN 13 006 165 975, AFS Licence No. 230523                        Act. Updated performance information, fund size,
      (referred to in this PDS as “BlackRock”, the                      current Unit prices and other general information
      “Responsible Entity”, the “Issuer”, the “Manager”, “we”,          relating to the Fund can be obtained:
      “our” or “us”).
                                                                        ►   from our website at au.iShares.com;
      BlackRock is the Issuer of this PDS and of Units in the
                                                                        ►   from your financial adviser; or
      Fund. Neither BlackRock nor any of our associates or
      related bodies corporate guarantees the success of the            ►   by contacting our iShares Call Centre (refer to the
      Fund, the achievement of the investment objective, or                 Corporate Directory section of this PDS for contact
      the repayment of capital or particular rates of return on             details).
      investment or capital.
                                                                        We may update this PDS (including the terms and
      An investor in the Fund could lose all or a substantial           features of the Fund where we can according to the
      part of their investment in the Fund. In particular, the          Fund’s constitution and the law) with changes that are
      performance of the Fund will depend on the                        not materially adverse without issuing a supplementary
      performance and market value of the assets held by the            PDS. Any such updates may be obtained by visiting our
      Fund as a result of tracking its underlying index.                website at au.iShares.com, or by contacting our iShares
                                                                        Call Centre (refer to the Corporate Directory section of
1.2   About this Product Disclosure Statement
                                                                        this PDS for contact details). A paper copy of any
      This PDS describes the main features of the Fund and is           updated information is available free of charge upon
      dated 2 March 2012.                                               request.
      A copy of this PDS has been lodged with the Australian            The offer or invitation to subscribe for Units in the Fund
      Securities and Investments Commission (“ASIC”) and                under this PDS is subject to the terms and conditions
      ASX Ltd (“ASX”). Neither ASIC nor the ASX take any                described in this PDS. We reserve the right to accept
      responsibility for the contents of this PDS.        An            or decline applications in full or in part and reserve the
      application for quotation on the ASX has been made to             right to change these terms and conditions.
      the ASX and as at the date of this PDS quotation has
                                                                        This PDS can only be used by investors receiving it
      not commenced. No applications for Units will be
                                                                        (electronically or otherwise) in Australia.
      accepted until the exposure period for the Fund, as
      required by the Corporations Act 2001 (Cth) (the                  In addition, certain Fund portfolio information will only
      "Corporations Act"), has expired. Once the exposure               be made available to Authorised Participants in relation
      period has expired BlackRock may determine when                   to their activities as Authorised Participants.
      applications for Units can be accepted.
                                                                  1.4   Need help?
      In preparing this PDS, we did not take into account your
      particular investment objectives, financial situation or          If you have questions about the Fund described in this
      needs. As the needs and aspirations of investors differ,          PDS speak to your financial adviser.
      you should consider whether investing in the Fund is              Should you require general assistance with respect to
      appropriate for you in light of your particular needs,            an iShares product, please call the iShares Call Centre
      objectives and financial circumstances. You may also              (refer to the Corporate Directory section of this PDS for
      wish to obtain independent advice.                                contact details).
      If you have received this PDS electronically, we can              Further information on the different iShares funds listed
      provide you with a paper copy free of charge upon                 on ASX is available at au.iShares.com or from your
      request by contacting the iShares Call Centre (refer to           financial adviser.
      the Corporate Directory section of this PDS for contact
      details).
4     iShares UBS Treasury Index Fund

1.5   Offer eligibility                                           3.    About BlackRock
      The offer in this PDS is only available to Authorised
                                                                        BlackRock, Inc.® (“BlackRock, Inc.”) is a premier
      Participants who have, where required, entered into a
                                                                        provider of global investment management, risk
      relevant Authorised Participant Agreement (“AP
                                                                        management and advisory services to institutional and
      Agreement”).
                                                                        retail clients around the world. Through BlackRock
      The minimum initial investment for Units in the Fund is           Solutions® – an outgrowth of our longstanding
      10,000 Units and the minimum amount for subsequent                investment in sophisticated, integrated systems – we
      applications for creations and redemptions is also                offer risk management services and enterprise
      10,000 Units per transaction.                                     investment system outsourcing to a broad base of
                                                                        institutional portfolios.
      Investors who are not Authorised Participants cannot
      invest through this PDS but may do so through the ASX.            BlackRock, Inc., through its subsidiaries (the
      Please consult your stockbroker or financial adviser.             “BlackRock Group”), directly manages investments on
                                                                        behalf of institutional and retail clients from around the
      Investors who are not Authorised Participants may use             globe. The BlackRock Group has asset management
      this PDS for informational purposes only and may                  teams covering all major asset classes, across many
      obtain further information in relation to the Fund by             investment styles and regions globally. Through cutting
      contacting the Registrar (refer to the Corporate                  edge systems, capabilities and an unqualified
      Directory section of this PDS for contact details).               commitment to teamwork and communication across
                                                                        all its investment capabilities, the BlackRock Group
                                                                        delivers an unparalleled breadth of perspective and
2.    About iShares®                                                    insights to the management of all its client portfolios.

      iShares are exchange traded funds ("ETFs"), which are             Headquartered in New York, the BlackRock Group
      managed funds quoted on exchanges around the world                operates offices in different countries, maintaining a
      (including the ASX). ETFs are designed to give investors          major presence in most key markets including the
      the opportunity to buy or sell a diversified portfolio of         United States, the United Kingdom, Asia, Australia, the
      assets in a single transaction.                                   Middle East and Europe.

      The name of each iShares fund generally refers to the             BlackRock, Inc. is the largest provider of ETFs in the
      fund’s underlying index. The provider of that index is            world through its iShares family, which consists of over
      responsible for choosing the components of the index              470 funds and approximately US$ 620 billion of assets
      and their weightings within the index.                            under management. A range of international iShares
                                                                        have been cross-listed on the ASX since October 2007.
      There are many types of indices, some are narrow,                 At June 30, 2011, BlackRock’s AUM was $3.659 trillion.
      tracking a single market sector with minimal holdings,
      while others are as broad as the entire market with         3.1   Responsible Entity in Australia
      hundreds of holdings. This means investors can use                BlackRock Investment Management (Australia) Limited
      iShares to gain the exposure and diversification they             is the responsible entity of the Fund. BlackRock
      want.                                                             Investment Management (Australia) Limited is a wholly-
      iShares is the world leader in ETFs with over 470                 owned subsidiary of BlackRock, Inc. but is not
      products offering interests in ETFs and trading on                guaranteed by any member of the BlackRock Group,
      exchanges worldwide. These products account for                   including BlackRock Inc.       When you invest with
      approximately 40 per cent of the global ETF market as             BlackRock you are gaining the expertise of an
      at the date of this PDS. Over the past ten years,                 experienced      team     of   Australian  investment
      iShares has cemented its position as the world leader             professionals across the full spectrum of investment
      through commitment to high quality products, investor             styles and asset classes, including equities, fixed
      education and superior client service.                            income, alternatives, and multi-asset class solutions,
                                                                        backed by the international resources and knowledge
      iShares ETFs were first launched in Australia in October          of the world’s largest asset manager.
      2007. As at the date of this PDS, there are 19 cross-
      listed iShares ETFs and 4 domestic iShares ETFs quoted            We are a member of the Financial Services Council
      on the ASX, across both international and domestic                (FSC).
      shares.
      iShares ETFs are brought to you by BlackRock, one of
      the world’s leading investment managers and itself an
      index-investing   pioneer    over     many    decades.
      BlackRock’s strength and stability are just some of the
      reasons for choosing iShares ETFs.
      iShares® is a registered trademark of BlackRock
      Institutional Trust Company, N.A.
5

4.    About the Fund                                              Which debt securities can be included in the UBS
                                                                  Treasury Index?
4.1   Investment objective and Fund strategy
                                                                  The debt securities which are included in the UBS
      The Fund aims to provide investors with the                 Treasury Index are selected by UBS, from time to time,
      performance of the market, before fees and expenses,        based on eligibility criteria. The key eligibility criteria
      as represented by the UBS Treasury Index (the “Index”).     for the debt securities which are included in the UBS
                                                                  Treasury Index are that the debt securities:
      The Fund seeks to achieve its objective by employing a
      full replication strategy to track the performance of the   ►   are of a minimum quality which is determined by
      Index. If we determine that we can achieve a more               reference to levels published by independent
      efficient means of obtaining exposure to the Index, we          service providers and bond rating firms. In addition,
      may do so. For example, in rare circumstances where a           if any debt securities fall below that minimum
      particular Index constituent security cannot be                 quality then those debt securities are removed and
      acquired, a combination of existing or similar securities       the UBS Treasury Index is rebalanced (as further
      in the Index, of like quality, would be used. However,          described below);
      the Fund will not invest in financial derivative
                                                                  ►   are  issued   by   the   Australian    Treasury
      instruments. Where required by the ASX Operating
                                                                      (Commonwealth Government debt securities);
      Rules, we will not significantly change the Fund’s
      investment objective, as described in this PDS, unless      ►   are denominated in Australian dollars;
      the change in objective has been approved by a
      resolution passed by at least 75% of votes cast by
                                                                  ►   are governed by the law of an Australian State or
      Unitholders who vote on the resolution at a meeting of          Territory or the Commonwealth of Australia;
      Unitholders.                                                ►   were issued in a minimum issue size of AUD 100
4.2   What the Fund invests in                                        million; and,

      In order to achieve its objective the Fund invests
                                                                  ►   have a final maturity of less than 50 years.
      primarily in Investment Grade fixed income securities       In addition to the above, certain debt securities are
      which reflect the minimum quality standard required to      excluded from the UBS Treasury Index, these include:
      be included in the Index, and which are issued by the       convertibles notes, zero coupon notes, private
      Australian Commonwealth Government.                         placements,      collateralised     debt    obligations,
      Whilst the Constitution of the Fund allows the              collateralised bond obligations and collateralised fund
      Responsible Entity to borrow on behalf of the Fund, it is   obligations, synthetic securitisations or hybrid capital
      our intention that no borrowing arrangements will be        securities.
      entered into by the Fund other than temporary               The different debt securities are included in the UBS
      overdrafts which may be used as a means of managing         Treasury Index on the basis of their gross market value
      certain cash flows.                                         proportions, not on an equally weighted basis, and
      As the Fund aims to track the performance of the Index,     these proportions can be rebalanced on a daily basis.
      investment decisions are independent of labour              Such rebalancings can occur, for example, when
      standards or environmental, social or ethical               interest or principal is received on the debt securities,
      considerations.                                             the debt securities are redeemed or mature, or when
                                                                  there is a new issue of debt securities which are to be
4.3   About the Index                                             included in the UBS Treasury Index (which occurs at the
                                                                  beginning of the following month). Rebalancing is
      The UBS Treasury Index is designed to measure the
                                                                  performed on the basis that interest and principal
      performance of the Australian bond market which
                                                                  received on the debt securities are reinvested in all of
      meets certain investment criteria and covers fixed
                                                                  the debt securities comprising the UBS Treasury Index
      interest bonds issued in the Australian debt market
                                                                  and on the basis that it is performed in market value
      under Australian law.
                                                                  proportions at the day’s closing prices.
      The UBS Treasury Index, a sub-index of the UBS
                                                                  As the UBS Treasury Index includes the value of
      Composite Bond IndexTM, is an index of valuations of
                                                                  reinvested interest and principal payments made on the
      the debt securities which are included in it. Below is
                                                                  debt instruments included in it, it is considered as a
      set out a description of the manner in which the debt
                                                                  capital accumulation index - which means that it is
      securities included in it are determined and also a
                                                                  designed to measure the total return from investing in
      description of the manner in which valuations are
                                                                  those debt securities.
      determined.
      The UBS Treasury Index has been calculated since 31
      March 1988.
6     iShares UBS Treasury Index Fund

      How are the valuations of those debt securities             4.6   Rebalancing the Fund
      determined?
                                                                        The Fund will typically rebalance on a monthly basis in
      The UBS Treasury Index is a gross market value                    line with the Index. However, as stated above, the
      weighted index. This means that all debt instruments              proportions of debt securities within the Index may be
      are valued using a determination of the price which an            rebalanced intra-month and as often as daily by the
      investor would pay to acquire the debt instrument. This           Index provider. The Fund may rebalance intra-month in
      price includes the value of future interest payments              line with Index activity or to manage the overall
      which are to be made under the debt securities.                   exposure to remain within an acceptable tolerance as
                                                                        determined by the Manager.
      These prices for debt instruments making up the UBS
      Treasury Index are taken from the firm closing prices at    4.7   Benefits of iShares
      the end of the day from active UBS trading books. UBS
                                                                        Each iShares fund is a managed fund listed or quoted
      employs periodic price testing to verify that its prices
                                                                        on exchanges (including ASX) providing you with the
      are consistent with market pricing.
                                                                        opportunity to gain exposure to a diversified portfolio of
      Involvement of UBS AG entities in the Index                       assets in a single transaction.
      UBS AG provides the UBS Treasury Index. Conflicts of              The benefits of investing in iShares funds include:
      interest may exist between UBS AG in this role and UBS
                                                                        ►   Diversification: In contrast to a direct investment in
      AG entities acting in other capacities. For example, a
                                                                            a single company or bond, an iShares fund provides,
      UBS AG entity may act as the issuer of or an obligor
                                                                            as far as practicable or efficient, and possible,
      under a debt security and as a dealer, calculation agent
                                                                            exposure to all of the securities or instruments
      or hedge provider in relation to a debt security. Various
                                                                            within the index, which the particular iShares fund
      conflicts of interest may arise as a result of these
                                                                            seeks to track. Notwithstanding, there may be a
      different roles as well as from the overall activities of
                                                                            concentration of bonds issued by Australian
      UBS AG entities. UBS AG entities shall be entitled to
                                                                            Commonwealth or State governments in the case of
      receive fees or other payments and exercise all rights,
                                                                            fixed income iShares funds, and each fixed income
      including rights of termination or resignation, which
                                                                            iShares fund will invest only in debt securities and
      they may have, even though this may have a
                                                                            not in other asset classes, such as equities.
      detrimental effect on the Issuer, the constituent debt
      instruments, an index or the Units.                               ►   Liquidity and transparency: Each iShares fund seeks
                                                                            investment results that correspond generally to the
4.4   Performance of the Index
                                                                            performance (before fees and expenses) of a
      Information relating to the past performance of the                   particular index. As a traded security, an iShares
      Index can be found on our website at au.iShares.com.                  fund enables you to enter and exit your holding on
      It is important to note that past performance is not a                the ASX. You can easily track performance and
      reliable indicator of future performance.                             trade during the ASX’s trading hours (subject to
                                                                            ASX rules).
4.5   Changes to the Index
                                                                        ►   Managing risk: Investing in an iShares fund can
      BlackRock has no present intention to change the Index
                                                                            assist you in establishing a portfolio appropriate to
      adopted by the Fund.
                                                                            your investment needs and suit your risk profile.
      BlackRock will not substitute the Index for another               ►   Lower cost: As each iShares fund is passively
      index if to do so would significantly change the Fund's
                                                                            managed and designed to follow a particular
      investment objective as described in this PDS, unless,
                                                                            underlying index, the expenses of managing a fund
      where required by the ASX Operating Rules, the change
                                                                            are generally lower compared to other forms of
      of investment objective has been approved by a
                                                                            retail managed funds. However, brokerage or
      resolution passed by at least 75% of votes cast by
                                                                            adviser fees may still apply when buying or selling
      Unitholders who vote on the resolution at a meeting of
                                                                            an ETF.
      Unitholders.
                                                                        ►   Receipt of income: You will generally receive regular
                                                                            income from your investment in the form of
                                                                            distributions. Distributions will normally include
                                                                            interest and other income. There may be periods in
                                                                            which no distributions are made.
                                                                        ►   Accessibility: iShares offer a cost-effective way to
                                                                            gain exposure to a diversified portfolio of securities.
                                                                            They can be less costly than purchasing a large
                                                                            number of individual securities as there are less
                                                                            trading costs and they offer lower thresholds than
                                                                            an investor might otherwise be able to afford.
7

4.8   Additional Information                                        4.9       About the AQUA Rules
      The following information can be obtained from our                      The Fund is quoted on the ASX under the AQUA Rules.
      website at au.iShares.com:                                              The AQUA Rules have been designed to offer greater
                                                                              flexibility and are specifically designed for managed
      ►   the Fund's daily Net Asset Value (“NAV”) as at the
                                                                              funds, ETFs and structured products.
          close of the previous trading day for the Fund;
                                                                              As most investors are more familiar with the ASX
      ►   where possible, and subject to availability, the
                                                                              Listing Rules, it is important to note the main
          Fund’s estimated intra-day NAV current to a time
                                                                              differences between the AQUA Rules and the ASX
          which is no more than 15 minutes before the time
                                                                              Listing Rules, which are set out below.
          the estimate is last available. It should be noted
          that the estimated intra-day NAV is an indicative               ASX Listing Rules                   ASX AQUA Rules
          figure only and may be subject to error;                   Control
                                                                     A person:                        A person:
      ►   the Fund's daily NAV per Unit (“NAV Price”) as at
          the close of the previous trading day for the Fund.        ► controls   the value of its    ► does  not control the value
          It should be noted that the NAV Price is that which             own securities and the        of the assets underlying
          is applied to a creation or redemption application              business it runs,             its products, but
          received prior to the close of trading on any
                                                                     ► the     value of those         ► offersproducts that give
          Business Day, as per section 7.5;
                                                                          securities is directly        investors exposure to the
      ►   copies of the latest PDS;                                       influenced by the equity      underlying assets – such
                                                                          issuer's performance and      as shares, indices,
      ►   daily underlying holdings of the Fund, including the
          name and percentage composition of each asset by                conduct.                      currencies or
                                                                                                        commodities.
          value relative to NAV as at the close of the previous      e.g. the management and
          trading day for the Fund;                                  board generally control the      The value (price) of products
      ►   copies of Annual Financial Reports (the Fund’s             fate of the business and,        quoted under the AQUA
          financial year ends 30 June);                              therefore, have direct           Rules is dependent upon the
                                                                     influence over the share         performance of the
      ►   copies of Semi-Annual Financial Reports; and               price.                           underlying assets rather
                                                                                                      than the financial
      ►   distributions (if declared).
                                                                                                      performance of the issuer
      Where the Fund is subject to the continuous disclosure                                          itself.
      requirements of the Corporations Act, we will satisfy
                                                                                                      e.g. A managed fund issuer
      our obligations by disclosing material information
                                                                                                      does not control the value of
      regarding the Fund on our website at au.iShares.com.
                                                                                                      the shares it invests in.
      A paper copy of this material will be available from
      BlackRock free of charge upon request.               This      Continuous disclosure
      information will also be released to the ASX via the ASX       Products under the ASX           Issuers of products quoted
      Markets Announcements Platform (asxonline.com.au).             Listing Rules are subject to     under the AQUA Rules are
      Certain Fund portfolio information will only be made           the continuous disclosure        not subject to the
      available to Authorised Participants in relation to their      requirements under ASX           continuous disclosure
      activities as Authorised Participants.                         Listing Rule 3.1 and section     requirements under ASX
                                                                     674 of the Corporations Act      Listing Rule 3.1 and section
      Prices of the underlying securities that form the Index
                                                                     2001.                            674 of the Corporations Act
      will not be publicly available to investors at the point of
                                                                                                      2001 but must disclose
      sale as there is no consolidated source that reports
                                                                                                      information about:
      prices of trades. Such information is generally only
      available to certain wholesale clients, as defined by the                                       ► the Net Tangible Assets
      Corporations Act.                                                                                 (“NTA”) or the Net Asset
                                                                                                        Value (“NAV”) of the
                                                                                                        funds;
                                                                                                      ► dividends,distributions
                                                                                                        and other disbursements;
                                                                                                        and
                                                                                                      any other information that is
                                                                                                      required to be disclosed to
                                                                                                      ASIC under section 675 of
                                                                                                      the Corporations Act 2001
                                                                                                      must be disclosed to ASX via
                                                                                                      the ASX Company
                                                                                                      Announcement Platform at
                                                                                                      the same time it is disclosed
                                                                                                      to ASIC.
8      iShares UBS Treasury Index Fund

      ASX Listing Rules                  ASX AQUA Rules                  ASX Listing Rules               ASX AQUA Rules
Periodic disclosure                                                Auditor rotation
Products under the ASX           Products quoted under the         There are specific              Issuers of products under
Listing Rules are required to    AQUA Rules are not required       requirements in relation to     the AQUA Rules are not
disclose half yearly and         to disclose half yearly and       auditor rotation under Part     subject to the requirements
annual financial information     annual financial information      2M.4 Division 5 of the          under Part 2M.4 Division 5 of
or annual reports under          or annual reports under the       Corporations Act 2001.          the Corporations Act 2001.
Chapter 4 of the ASX Listing     AQUA Rules.
                                                                                                   The responsible entity of an
Rules.
                                 However, because the Fund                                         unlisted scheme quoted on
                                 is a registered managed                                           the AQUA market will
                                 investment scheme, we are                                         continue to be required to
                                 still required to prepare                                         undertake an independent
                                 financial reports under                                           audit of its compliance with
                                 Chapter 2M of the                                                 the scheme’s compliance
                                 Corporations Act 2001.                                            plan in accordance with
                                 These reports will be made                                        section 601HG of the
                                 available on our website at                                       Corporations Act 2001.
                                 au.iShares.com.
                                                                   Disclosure
Corporate control                                                  Entities admitted under the     Products quoted under the
Requirements in the              Certain requirements in the       ASX Listing Rules are subject   AQUA Rules will also be
Corporations Act 2001 and        Corporations Act 2001 and         to the requirements of the      subject to these
the ASX Listing Rules in         the ASX Listing Rules in          Corporations Act 2001 in        requirements of the
relation to matters such as      relation to matters such as       relation to the issue of a      Corporations Act 2001.
takeover bids, share buy-        takeover bids, buy-backs,         PDS.
backs, change of capital,        change of capital, new
new issuers, restricted          issuers, restricted securities,   Source: ASX Rules Framework
securities, disclosure of        disclosure of directors'          4.10   Announcements to ASX
directors' interests and         interests and substantial
substantial shareholdings        shareholdings that apply to              All announcements (including continuous disclosure
apply to companies and           companies and listed                     notices and distribution information) will be made to
schemes.                         schemes do not apply to                  the ASX via the ASX Markets Announcements Platform
                                 products quoted under the                (asxonline.com.au).
The responsible entity of a
                                 AQUA Rules.                       4.11   Securities lending
listed scheme may be
replaced by a resolution of      Issuers of products quoted               The Fund does not participate in a securities lending
members holding a majority       under the AQUA Rules are                 program for lending any of the fixed income securities
of the votes cast on the         subject to general                       in the portfolio.
resolution.                      requirement to provide the
                                 ASX with any information
                                 concerning itself that may
                                 lead to the establishment of
                                 a false market or materially
                                 affect the price of its
                                 products.
                                 The responsible entity of an
                                 unlisted scheme quoted on
                                 the AQUA market may only
                                 be replaced by a resolution
                                 of members holding a
                                 majority of votes that are
                                 eligible to be cast on the
                                 resolution.
Related party transactions
Chapter 10 of the ASX            Chapter 10 of the ASX
Listing Rules, which relates     Listing Rules does not apply
to transactions between an       to AQUA products.
entity and persons in a
                                 Unlisted schemes quoted on
position to influence the
                                 the AQUA market remain
entity, specifies controls
                                 subject to the related party
over related party
                                 requirements in Part 5C.7
transactions.
                                 and Chapter 2E of the
                                 Corporations Act 2001.
9

5.   Risks                                                         Tracking error risk. The Net Asset Value of the Fund
                                                                   may not correlate exactly with the Index. Factors such
     What are the significant risks?                               as the fees and expenses of the Fund, imperfect
                                                                   correlation between the Fund's assets and the
     Before you make an investment decision it is important
                                                                   securities constituting the Index, inability to rebalance
     to identify your investment objectives and the level of
                                                                   the Fund’s holdings of securities in response to
     risk that you are prepared to accept. This may be
                                                                   changes in the constituents of the Index, rounding of
     influenced by:
                                                                   prices, changes to the Index and regulatory policies
     ►   the timeframe over which you are expecting a              may affect the Responsible Entity's ability to achieve
         return on your investment and your need for regular       close correlation with the Index of the Fund. The Fund's
         income versus long-term capital growth;                   returns may therefore deviate from the Index.
     ►   your level of comfort with volatility in returns; or      Concentration risk. If the Index of the Fund is
                                                                   concentrated in a particular bond, group of bonds,
     ►   the general and specific risks associated with            industry or group of industries, the Fund may be
         investing in particular funds.                            adversely affected by the performance of those bonds
     General risks                                                 and be subject to price volatility. In addition, where the
                                                                   Fund is concentrated in a single bond, group of bonds,
     All investments have an inherent level of risk.               industry or group of industries, it may be more
     Generally, there is a trade off between higher expected       susceptible to any single economic, market, political or
     returns for higher expected risk – represented by the         regulatory occurrence.        There may be limited
     variability of fund returns. The value of your investment     counterparty diversification for the bonds comprising
     will fluctuate with the value of the underlying               the Index, as they may be concentrated to Australian
     investments in the Fund. Investment risk may also             government bonds, either Commonwealth or State.
     result in loss of income or capital invested and possible
     delays in repayment. You could receive back less than         Government bonds risk. The price of government
     you initially invested and there is no guarantee that you     bonds will generally be affected by changing interest
     will receive any income.                                      rates.

     What about the specific risks of this Fund?                   In periods of low inflation, the positive growth of a
                                                                   government bond fund may be limited.
     The significant risks for this Fund are discussed below.
     The performance of the Fund will reflect the volatility of    There is a risk to the Fund that the Australian Treasury
     the Fund’s underlying investments. If these risks             may not continue to issue government debt securities,
     eventuate, your distributions may be lower than               or may close down the Commonwealth Government
     expected or there may be none, and the value of your          securities market.
     investment could fall.                                        Liquidity risk.     Certain bond markets (especially
     The significant risks for this Fund may include:              secondary markets) may be relatively illiquid. The cost
                                                                   of dealing may be high in such illiquid markets. A
     Market risk. Past performance is not indicative of            disruption in the asset allocation in the Fund is also
     future performance. The Net Asset Value of the Fund           possible if underlying securities cannot be purchased or
     will change with changes in the market value of the           sold.
     securities it holds. The price of Units and the income
     from them may go down as well as up. Investors may            Reliance on investment ratings risk. Credit rating
     not get back their original investment. There can be no       agencies assign various credit ratings to the individual
     assurance that the Fund will achieve its investment           securities that form part of a fund’s portfolio. These
     objective or that an investor will achieve profits or avoid   ratings vary based on the perceived quality of those
     losses, significant or otherwise. The capital return and      securities. For example, the term ‘Investment Grade’
     income of the Fund is based on the capital appreciation       denotes a certain level of quality of a security, which
     and income on the securities it holds, less expenses          has been ascribed by an independent rating agency or
     incurred. The Fund’s return may fluctuate in response         agencies, though no guarantee of investment
     to changes in such capital appreciation or income.            performance can be derived from this term. Grades
     Furthermore, the Fund may experience volatility and           determined by such agencies may form only one view
     decline in a manner that broadly corresponds with the         of the security and should not be relied upon in
     Index.                                                        isolation. Further, ratings are provided by commercial
                                                                   agencies that are paid for their services and therefore
     Secondary market trading risk. Units of the Fund may          potential conflicts may exist in the classification of
     trade on the ASX when the Fund does not accept orders         precise ratings grades. Rating agencies attempt to
     to create or redeem Units. On such days, Units may            pursue principles and maintain standards that deliver
     trade in the secondary market with more significant           effectiveness and reliability, however, neither an
     premiums or discounts than might be experienced on            accurate rating classification determined when a bond
     days when the Fund accepts creation and redemption            is issued, nor accurate review during the life of a bond,
     orders.                                                       can be assured.
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