iShares Conservative Portfolio UCITS ETF

Investment rationale

This is an actively managed multi-asset UCITS ETF designed to provide total return while targeting a conservative risk profile. It is classified in the mixed asset EUR conservative global peer group, has a summary risk indicator of 3 out of 7, and a recommended holding period of 5 years. The fund is intended for retail investors who can bear losses up to the amount invested. It provides globally diversified exposure through underlying ETFs across stocks and bonds, with at least 80% of assets meeting the fund’s ESG criteria.

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How the strategy works

The fund aims to achieve a return through a combination of capital growth and income, while maintaining a conservative risk profile of 3-7% annualised return volatility measured over five years and investing in a manner consistent with its ESG criteria. It is actively managed without reference to a benchmark, so the investment manager has absolute discretion and is not constrained by any target, comparator or performance benchmark. The portfolio obtains indirect global exposure to fixed income securities, equity securities and collective investment schemes, predominantly through other funds and investment products, with at least 80% of assets at purchase invested in funds tracking indices that meet certain ESG criteria. The fund can vary asset allocation in different market conditions, may use financial derivative instruments to reduce risk, reduce costs and generate additional income, may engage in short-term secured lending, had a modified duration of 3.83 years and 20 holdings as of 31 August 2026, and the share class is EUR accumulating with a 5-year recommended holding period. The portfolio’s risk profile may fall outside the stated range from time to time.

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Investment philosophy

• The fund is actively managed without reference to a benchmark and invests predominantly in other funds and investment products to obtain indirect exposure to a variety of asset classes globally.

• Portfolio construction is based on consistency with the fund’s conservative risk objective, the fund’s ESG criteria, the investment manager’s quantitative models, and the investment manager’s discretionary insights.

• At least 80% of assets must, at the time of purchase, be invested in funds tracking indices that meet certain ESG criteria, and the fund may exclude funds not subject to ESG-related requirements.

• As of 31 August 2026 the portfolio held 20 positions, with the top ten accounting for 76.98% of assets; largest holdings include iShares EUR Govt Bond Climate UCITS (14.48%), iShares MSCI USA Screened UCITS ETF (14.13%), iShares $ Treasury Bond 7-10yr UCITS ETF (9.94%), iShares Cash UCITS ETF (8.17%), and iShares Euro Corp Bond ESG UCITS (7.90%).

• Risk is managed by varying asset allocation across market conditions to seek to stay within the stated 3-7% risk profile, while derivatives may be used to reduce portfolio risk and costs; the portfolio’s modified duration on that date was 3.83 years.

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Distinctive features

The fund combines active multi-asset allocation with ETF implementation, giving exposure to a globally diversified selection of ETFs that comprise thousands of individual stocks and bonds. At least 80% of assets must be invested in ETFs tracking indices that meet certain environmental, social and governance criteria, and the fund is classified under SFDR Article 8. It also targets a conservative risk profile while remaining flexible across asset classes and market conditions. The total expense ratio is 0.25%, and the ETF is listed in EUR on SIX Swiss Exchange, Xetra and Borsa Italiana.

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Risks

The fund has a summary risk indicator of 3 out of 7, described as a medium low risk class, but it does not include protection from future market performance and investors could lose some or all of their investment. Because it invests in fixed income securities, equities and commodities through underlying funds, returns can be affected by interest-rate changes, issuer default, credit-rating downgrades, stock market movements, political and economic news, company earnings, corporate events and higher commodity price variation. The fund is also exposed to counterparty risk, credit risk and liquidity risk, including the possibility that insufficient buyers or sellers may make investments harder to trade. Currency risk applies if an investor’s payment currency differs from the product’s base currency, ESG screening may reduce the investment universe and adversely affect value versus a fund without such screening, and derivatives and securities lending are used within the portfolio.

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Asset manager

The fund is manufactured and managed by BlackRock Asset Management Ireland Limited. The manager is part of the BlackRock, Inc. group and is authorised in Ireland and regulated by the Central Bank of Ireland. The fund is a sub-fund of iShares III plc and the issuing company is iShares III plc.

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