BlackRock Asset Management International Inc. (“BAMII”) announced today that the iShares S&P GSCI Commodity-Indexed Trust (the “Trust”) is expected to resume creation of new shares on April 27, 2010, at 9:30 a.m. ET. The Trust is listed and trades on NYSE Arca under the symbol “GSG.” Creation of new shares of the Trust has been suspended since August 24, 2009.
“We are pleased to resume the creation of new shares in the iShares S&P GSCI Commodity-Indexed Trust in an effort to satisfy demand,” said Michael Latham, Head of U.S. iShares, BlackRock. “We continue to pursue additional steps we could take to avoid the need to close the Trust to new creation orders again in the future.”
The shares are currently trading at a premium to the net asset value of the Trust (“NAV”). BAMII cannot predict what effect, if any, the resumption of creation activity will have on the price of the shares on NYSE Arca. It is possible that the resumption of creation activity, even on a limited basis, could reduce or remove any premium over NAV. Investors are cautioned that paying a premium over NAV for shares can lead to additional losses for the investor if the investor sells such shares at a time when the premium is no longer present in the market place.
The iShares ® S&P GSCI TM Commodity-Indexed Trust (the “Trust”) and the iShares ® S&P GSCI TM Commodity-Indexed Investing Pool (“Investing Pool”), in which the Trust invests all its assets, are each commodity pools as defined in the Commodity Exchange Act and the applicable regulations of the CFTC. The Sponsor of the Trust is BlackRock Asset Management International Inc. (“BAMII”), a commodity pool operator (“CPO”) registered with the CFTC. BAMII is also the Manager and CPO of the Investing Pool. BlackRock Fund Advisors (“BFA”) serves as the commodity trading advisor of the Investing Pool and is registered with the CFTC. BlackRock Fund Distribution Company (“BFDC”), a broker-dealer and FINRA member, provides promotional support to the Trust. BFDC is a subsidiary of BAMII. BFA is a subsidiary of BlackRock Institutional Trust Company, N.A. (“BTC”), a national banking association and the Trustee. BAMII and BTC are affiliates of BlackRock, Inc. Neither the Trust nor the Investing Pool is an investment company registered under the Investment Company Act.Investments in shares of the Trust are speculative and involve a high degree of risk. You could lose all or a substantial portion of your investment in the shares of the Trust. Before making an investment decision, you should carefully consider the risk factors and other information included in the prospectus. The value of the shares of the Trust, which seeks to track the S&P GSCI TM Total Return Index (“Index”), depends on the value of CERFs held by the Investing Pool, which are futures contracts on the S&P GSCI TM Excess Return Index (“S&P GSCI-ER”), and will fluctuate based on the prices of commodity futures contracts reflected in the S&P GSCI-ER. Commodities markets have historically been extremely volatile. Shares may outperform or underperform the Index. The price you receive upon the sale of your shares may be less than their NAV. The NAV will fluctuate with changes in the market value of the Investing Pool’s assets, and market supply and demand. Brokerage commissions and fees will reduce returns. Although shares of the Trust may be bought or sold on the exchange through any brokerage account, shares of the Trust are not redeemable from the Trust except in one or more blocks of 50,000 units called Baskets. Only institutions that become Authorized Participants may purchase or redeem Baskets.