Documente Academic
Documente Profesional
Documente Cultură
31 March 2018
Contents
General Information 2
Directors’ Report 12
Report on Remuneration 16
Portfolio of Investments 29
iShares Emerging Markets Equity Index Fund (LU)
(formerly known as BlackRock Emerging Markets Equity Index Fund) 29
iShares Emerging Markets Government Bond Index Fund (LU)
(formerly known as BlackRock Emerging Markets Government Bond Index Fund) 37
iShares Europe Equity Index Fund (LU)
(formerly known as BlackRock Europe Equity Index Fund) 51
iShares Euro Aggregate Bond Index Fund (LU)
(formerly known as BlackRock Euro Aggregate Bond Index Fund) 56
iShares Euro Government Bond Index Fund (LU)
(formerly known as BlackRock Euro Government Bond Index Fund) 86
iShares Global Government Bond Index Fund (LU)
(formerly known as BlackRock Global Government Bond Index Fund) 92
iShares Japan Equity Index Fund (LU)
(formerly known as BlackRock Japan Equity Index Fund) 106
iShares North America Equity Index Fund (LU)
(formerly known as BlackRock North America Equity Index Fund) 110
iShares Pacific ex Japan Equity Index Fund (LU)
(formerly known as BlackRock Pacific ex Japan Equity Index Fund) 117
iShares World Equity Index Fund (LU)
(formerly known as BlackRock World Equity Index Fund) 120
Subscriptions can only be made on the basis of the current Prospectus, the Key Investor Information Document (“KIID”) supplemented by the most recent annual report and audited accounts
and unaudited interim report and accounts, if published after such annual report and audited accounts. Copies are available at the registered office of the Company from the Local Investor
Servicing team, the Transfer Agent, the Management Company or any of the Distributors. See General Information section for further details.
Current Prospectus
BlackRock Global Index Funds (the “Company”) Prospectus dated 20 April 2018, and the relevant KIID along with copies
of the Application Form may be obtained from the Local Investor Servicing team, the Management Company or any of the
Representatives or Distributors. Copies of the Company’s Articles of Incorporation, the Annual Report and Audited Accounts
and Unaudited Interim Report and Accounts may also be obtained free of charge from any of these offices and from the Paying
Agents. All these documents are also available from www.blackrockinternational.com.
Representatives
The representative in Denmark is BlackRock Copenhagen Branch, subsidiary of BlackRock Investment Management (UK)
Limited, England, Harbour House, Sundkrogsgade 21, Copenhagen, DK 2100, Denmark.
The representative in Switzerland is BlackRock Asset Management Switzerland Limited, Bahnhofstrasse 39, 8001
Zürich, Switzerland.
Portfolio of Investments
Equities are primarily classified by the country of incorporation of the entity in which the Fund (each a “Fund”, together the
“Funds”) holds shares.
Corporate and government fixed and variable income securities are primarily classified by the country of incorporation
of the issuer.
Authorised Status
The Company is an undertaking for collective investment in transferable securities (“UCITS”) under the part I of Luxembourg Law
of 17 December 2010, as amended. Regulatory consents have been obtained or appropriate notifications have been made for the
distribution of shares of all the Company’s Funds in the umbrella in the following countries:
Austria, Chile, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Norway, South Africa, Spain,
Sweden, Switzerland and United Kingdom.
The Company is duly registered with the Comisión Nacional de Mercado de Valores in Spain under number 1239.
Dear Shareholder,
I am writing to update you on the activities of BlackRock Global Index Funds (the “Company” or “BGIF”) over the twelve months
to 31 March 2018. The BGIF range comprised 10 funds (each a “Fund”, together the “Funds”) as at 31 March 2018.
The Funds’ performance is covered in more detail in the separate Investment Adviser’s Report. The period under review saw
volatility return as geopolitical tensions started to weigh on investors.
In particular, the US administration’s position on trade tariffs has left investors fearful of a full-scale trade war between the US
and China. China’s response to tariffs on steel and aluminum was initially relatively measured, imposing tariffs worth just £3 billion
on 128 US imports. However, this was followed with more robust moves later on.
At the same time, while the North Korean situation decreased in intensity, Russia/US tensions accelerated over Syria. The move
prompted United Nation’s General Secretary Antonio Guterres to say the Cold War was ‘back with a vengeance’. US President
Donald Trump admitted that the US/Russian relations are as bad as they have ever been. However, the forthcoming meeting
in Helsinki is an attempt to improve relations.
On the opposing side, markets were buoyed by significant tax cuts in the US, as President Donald Trump finally got his tax reform
legislation through Congress. Corporations were a notable beneficiary, with their rate of tax reduced significantly.
This activity was reflected in growing volatility in markets. The S&P ended the period under review higher than where it had started,
but after a strong bounce in December 2017, there was a significant sell-off towards the end of January 2018. The sell-off was
prompted by the US wage data, which seemed to suggest a resurgence in inflation, and therefore that higher interest rates were
imminent. Global stock markets followed the US lead.
The global economy, in contrast, continued to drift higher. While there remain fears that fiscal stimulus and a trade war will trigger
inflation in the US, force rate rises and therefore hasten a recession, there was only isolated evidence for this scenario over
the period. Emerging markets, notably in Asia, continued to show strength.
The Federal Reserve (the “Fed”) responded to improving growth and employment figures, with a further quarter point rise in March
2018, bringing the Fed funds rate to 1.5-1.75 %. Debate continues over whether there will be three or four rate rises in 2018.
Recent comments from new Fed Chair Jay Powell suggest a more hawkish stance.
Stock markets continued their rotation away from more defensive companies, with stable, predictable earnings, cashflow
and dividends, and towards more economically-sensitive areas, such as financials or resources, which looked likely to benefit
from an inflationary environment. In particular, equity income areas performed poorly, as investors anticipated higher bond yields.
For the most part, the US markets continued their leadership, in spite of higher valuations. Performance broadened out
from the large technology companies that had led markets higher for much of 2017, particularly when they became embroiled
in a difficult row about how they use, store and distribute user data.
Elsewhere, Japanese markets also showed strength, buoyed by the supportive policies of the Japanese central bank and
an improving economy. Performance continued to be good among domestically-focused small and mid-cap stocks.
Although Europe had put many of its political problems behind it with the election of centrist, pro-European Emmanuel Macron
as President in 2017, its stock markets were lackluster. The Eurozone economy continued to show strength, although it lost
a little momentum in the early months of 2018. The weak coalition pulled together by the German Chancellor Angela Merkel
and messy elections in Italy continued to weigh on the region.
The UK started to see some light at the end of the Brexit tunnel and marginally more political stability than seen for much of 2017.
Nevertheless, global investors continued to shun UK assets and its stock market performed poorly relative to its peer group.
The information stated in this report is historical and not necessarily indicative of future performance.
Emerging markets were a key area of strength, although Asia saw some turbulence in the wake of the wrangling over trade tariffs.
Investors were encouraged by continued strong economic performance and growing corporate earnings.
Bond yields continue to move higher, particularly shorter-dated bonds. A notable phenomenon has been the flattening of the
US yield curve – traditionally a precursor to recession. However, while inflation has remained relatively benign, it has kept a lid
on yields. There are still significant deflationary forces at work – high debt, an ageing population and low business investment.
Corporate bonds remain at historically tight spreads over government bonds, but with the global economy still strong, there is
no immediate catalyst for a shift in direction.
Regulatory change continued throughout Europe and a number of these future changes could have implications for investors.
Key changes included:
Revisions to the Markets in Financial Instruments Directive (“MiFID II”) and the new Markets in Financial Instruments
Regulation (“MiFIR”) came into effect at the beginning of 2018. New requirements include restrictions on how financial
advisers may be remunerated, plus disclosure on fees.
European Market Infrastructure Regulation (“EMIR”): the Joint Committee of the European Supervisory Authorities published
the final draft of the Regulatory Technical Standards in March 2016, which provide the framework for EMIR. This aims
to increase the transparency and reduce the risk relating to over-the-counter derivatives. In May 2017, the European
Commission published a legislative proposal to amend EMIR, reflecting the outcome of its review into how the regulation
has worked since its adoption in 2012.
Packaged Retail Investment and Insurance-based Investment Products (“PRIIPs”): The new legislation – which governs
the marketing and distribution of financial products – came into effect at the start of 2018. Although the Funds are not directly
impacted by PRIIPs, investment in underlying securities and investors to Fund may be affected.
The Benchmarks Regulation also applies from 1 January 2018, subject to certain transitional provisions. This brings
in guidance on the structure and use of benchmarks in measuring the performance of investment funds.
There were no new fund launches or closures during the twelve month period. Assets Under Management (“AUM”) in the BGIF
range increased by 15.3 %. They now stand at USD 7.17 billion, up from USD 6.22 billion at the start of the period. The strongest
inflows were seen into the iShares Global Government Bond Index Fund, which rose 282 % to USD 363.16 million. The iShares
Euro Aggregate Bond Index Fund also saw strong growth, with AUM rising by 35.0 % to EUR 623.97 million. The iShares Emerging
Markets Government Bond Index Fund saw assets rise 30.2 % to USD 2,441 million.
Within equity funds, the iShares Emerging Markets Equity Index Fund saw the strongest flows, with AUM rising 19.7 % to
USD 522.96 million. The iShares Japan Index Fund was also strong, with assets up 22.7 % to USD 185.08 million. The iShares
Pacific ex Japan Equity Index Fund rose 14.4 % to USD 353.80 million.
Flows into the iShares North America Equity Index Fund were weak in spite of the strength of the US markets, falling 23.8 %
to USD 597.07 million. The iShares Europe Equity Index Fund saw net assets falling 11.0 % to EUR 381.37 million. The iShares
Euro Government Bond Index Fund saw assets fall, dropping 2.6 % to EUR 425.04 million. The iShares World Equity Index Fund
was also weak, with assets falling 18.1 % to USD 939.92 million.
As notified to shareholders on 26 July 2017, with effect from 29 August 2017, the use of the iShares brand was extended to cover
BlackRock’s index mutual funds range. As a result, the names of the following Funds have been rebranded as set out in the table
overleaf.
The information stated in this report is historical and not necessarily indicative of future performance.
Should you have any questions on any of this material, please contact us via our website: www.blackrockinternational.com.
Yours faithfully,
Paul Freeman
Chairman
The information stated in this report is historical and not necessarily indicative of future performance.
Disclosed in the table below are the performance returns for the primary share class for each Fund, which has been selected
as a representative share class. The primary share class for each Fund is the A class non-distributing share. Performance figures
for any other share class can be made available upon request.
Past performance is not a guide to future performance and should not be the sole factor of consideration when selecting a
product. All financial investments involve an element of risk. Therefore, the value of your investment and the income from it will
vary and your initial investment amount cannot be guaranteed. The Funds invest a large portion of assets which are denominated
in other currencies; hence changes in the relevant exchange rates will affect the value of the investment. The performance figures
do not consider charges and fees that may be levied at the time of subscription or redemption of shares. Levels and bases
of taxation may change from time to time. Subscriptions can only be made on the basis of the current Prospectus, the KIID,
supplemented by the most recent annual report and audited accounts and unaudited interim report and accounts, if published
after such annual report and audited accounts. Copies are available at the registered office of the company from the Local
Investor Servicing team(1), the Transfer Agent, the Management Company or any of the Distributors. BGIF is only available for
investment by non-US citizens who are not residents of the US. The Funds are not offered for sale or sold in the US, its territories
or possessions.
Financial Year
Performance to
31 March 2018 Calendar Year Performance
1 year 2017 2016 2015 Launch Date
ʼAʼ Non Dist (USD) 24.09% 37.32% 10.60% (15.41)% 16 November 2012
MSCI Emerging Markets Index (USD) 25.03% 37.39% 11.26% (15.12)%
iShares Emerging Markets Government Bond Index Fund
(LU) ʻAʼ Non Dist (USD) 3.80% 9.70% 9.65% 0.82% 28 May 2013
J.P. Morgan Emerging Markets Bond Index Global Diversified (USD) 4.30% 10.26% 10.15% 1.18%
iShares Europe Equity Index Fund (LU) ʻAʼ Non Dist (EUR) 0.06% 10.66% 1.73% 8.79% 23 October 2012
MSCI Europe Index (EUR) (0.24)% 10.52% 2.36% 8.41%
iShares Euro Aggregate Bond Index Fund (LU) ʻAʼ Non Dist (EUR) 1.69% 0.08% 2.89% 0.44% 28 May 2013
Bloomberg Barclays Euro Aggregate Bond Index (EUR) 2.37% 0.68% 3.32% 1.00%
iShares Euro Government Bond Index Fund (LU) ʻAʼ Non Dist (EUR) b1 2.52% (0.40)% 2.81% 1.05% 23 October 2012
FTSE EMU Government Bond Index (EUR) b3 3.13% 0.15% 3.20% 1.65%
iShares Global Government Bond Index Fund (LU) b1
ʻAʼ Non Dist (USD) 7.91% 6.85% 0.90% (4.34)% 23 October 2012
FTSE World Government Bond Index (USD) b4 8.49% 7.49% 1.60% (3.57)%
iShares Japan Equity Index Fund (LU) ʻAʼ Non Dist (USD) b1 18.88% 23.31% 2.01% 7.86% 23 October 2012
MSCI Japan Index (USD) 20.04% 24.25% 2.29% 9.20%
iShares North America Equity Index Fund (LU) ʻAʼ Non Dist (USD) 10.84% 20.47% 10.79% (2.00)% 23 October 2012
MSCI North America Index (USD) 11.49% 21.16% 11.37% (1.46)%
iShares Pacific ex Japan Equity Index Fund (LU) ʻAʼ Non Dist (USD) b2 7.94% 25.46% 6.56% (9.07)% 24 October 2012
MSCI Pacific ex Japan Index (USD) 8.41% 25.96% 7.32% (8.06)%
iShares World Equity Index Fund (LU) ʻAʼ Non Dist (USD) b1 13.08% 22.09% 6.80% (1.71)% 23 October 2012
MSCI World Index (USD) 13.67% 22.62% 7.27% (1.21)%
b1 Performance figures quoted are based on the non-dealing price at the month end date and are not the same as the NAV reported in the financial statements which is the dealing price
at 29 March 2018.
b2 Performance figures quoted are based on the non-dealing price at the month end date and are not the same as the NAV reported in the financial statements which is the dealing price
at 28 March 2018.
b3 The benchmark changed its name from the Citi EMU Government Bond Index on 9 March 2018.
b4 The benchmark changed its name from the Citi World Government Bond Index on 9 March 2018.
Fund performance returns are based on dealing prices with net dividends (after deduction of witholding tax) reinvested and are shown net of fees. Index Sources: Info Research & Datastream
The information stated in this report is historical and not necessarily indicative of future performance.
Investment Objective more solid, old-fashioned areas – equity income was weak
The investment objective of each Fund is to match the in relative terms, for example. The ‘bond proxies’ that had
performance of the Benchmark Index of that Fund as listed found favour in a weaker growth environment began to lose
in the table below. favour as the prospect of interest rates rose.
Fund Benchmark Index Investment Bond markets were volatile for much of the period, with
Management yields moving higher as inflationary pressures mounted.
Approach The US Fed raised rates three times in 2017 and once to
date in 2018. The market currently expects two or even three
iShares Emerging MSCI Emerging Optimising
Markets Equity Markets Index more in 2018. Elsewhere, the Bank of England raised rates
Index Fund (LU) in November 2017, moving it off the emergency low rate
introduced in the wake of the vote to leave the European
iShares Emerging J.P. Morgan Optimising
Union. The European Central Bank also started to discuss
Markets Emerging Markets
Government Bond Bond Index Global
paring back quantitative easing, though the Bank of Japan
Index Fund (LU) Diversified remained resolute in its support of loose monetary policy.
The information stated in this report is historical and not necessarily indicative of future performance.
The information stated in this report is historical and not necessarily indicative of future performance.
Cash management, efficient portfolio management In addition, as the NAV of a Fund taken at its valuation point
techniques (including securities lending), transaction costs includes the effect of any swing pricing, the tracking error
from rebalancing and currency hedging collectively can have figures set out below may be impacted depending on the
an impact on tracking error, as well as the return differential significance of any adjustment in the NAV in order to reduce
between a Fund and its Benchmark Index. Importantly, these the effect of “dilution” on that Fund resulting from the sale
impacts can be either positive or negative, depending or purchase of shares in the Fund.
on the underlying circumstances.
A Fund’s tracking error figures set out below may also be
Explanation of Divergence Between Anticipated and Realised affected by non-dealing days, which occur at times when the
Tracking Error local stock exchanges or regulated markets in respect
of a particular Fund are closed for trading and settlement
The Funds may have a tracking error due to a number due to public holidays. During such times, the relevant Funds
of sources. will not be able to obtain access to such market(s) directly
and will, for example, either hold the cash received from any
Funds may have a tracking error due to withholding tax
subscriptions until the relevant market(s) are open or will
suffered by the Funds on any income received from
obtain exposure to the relevant market(s) indirectly using
its investments. The level and quantum of tracking error arising
proxy instruments. Both approaches may increase a Fund’s
due to withholding taxes depends on various factors, such
tracking error. Alternatively, the tracking error of a Fund may be
as any reclaims filed by the Funds with various tax authorities,
affected if there is a public holiday in Luxembourg, as the NAV
any benefits obtained by the Funds under a tax treaty
of the Funds will remain the same, despite movements in the
or any securities lending activities carried out by the Funds.
underlying markets.
A Fund’s tracking error may be affected if the times at which
The table overleaf compares the anticipated tracking error of
a Fund and its Benchmark Index are priced are different.
the Funds (disclosed in the prospectus on an ex ante basis)
Where the Benchmark Index is valued at the time the relevant
against the actual realised tracking error of the Funds as
markets close for business and a Fund is valued at an earlier
at 31 March 2018. The realised tracking error is annualised
time, the tracking error of that Fund may appear to be higher
and calculated using data from the preceding 36 month
than if the Fund and the Benchmark Index were priced
observation period.
at the same time. This is particularly relevant for the fixed
income Funds, although, less so for the equity Funds
for which the relevant index provider issues a price of the
relevant Benchmark Index at the same time as the equity
Fund’s valuation point.
The information stated in this report is historical and not necessarily indicative of future performance.
April 2018
The information stated in this report is historical and not necessarily indicative of future performance.
Corporate Governance Statement The Board supports a planned and progressive renewal of
the Board. BlackRock is committed to ensuring that Directors
Introduction put forward for election by the shareholders possess the skills
BlackRock Global Index Funds (the “Company”) is a needed to maintain this balance. The Board is committed to
public limited company (société anonyme) established carrying out an annual review of its performance and activities.
under the laws of the Grand Duchy of Luxembourg as an
open ended variable capital investment company (société The Directors have a continuing obligation to ensure they have
d’investissement à capital variable). The Company has been sufficient time to discharge their duties. The details of each
authorised by the Commission de Surveillance du Secteur Director’s (including the Chairman), other appointments and
Financier (the “CSSF”) as UCITS pursuant to the provisions commitments are made available to the Board and BlackRock
of Part I of the law of 17 December 2010, as amended and Investment Management (U.K.) Limited (“BIM UK”) for
is regulated pursuant to such law. The Company complies inspection. All new appointments or significant commitments
with the principles set out in the Association of the Luxembourg require the prior approval of BIM UK.
Fund Industry (“ALFI”) Code of Conduct Revision 2013 (the
Before a new Director is proposed to the shareholders for
“Code”) issued by ALFI in June 2013.
appointment he or she will receive a full induction incorporating
The Board of Directors of the Company (the “Board”) relevant information regarding the Company and his or her
is committed to maintaining the highest standards of duties and responsibilities as a Director. In addition, a new
corporate governance and is accountable to shareholders Director is required to spend some time with representatives
for the governance of the Company’s affairs. The Board of BIM UK so that the new Director will become familiar with
has considered the principles and recommendations of the various processes which are considered necessary for the
the Code and has put in place a framework for corporate proper performance of his or her duties and responsibilities to
governance which it believes is appropriate for adherence the Company.
to the principles of the Code given the nature of its structure
The Company’s policy is to encourage Directors to keep up
as an Investment Company. This statement summarises the
to date with developments relevant to the Company. The
corporate governance structure and processes in place for
Directors have attended and will continue to attend updates
the Company for the period under review from 1 April 2017
and briefings run by BIM UK and affiliated entities in the U.S.
to 31 March 2018.
and elsewhere. The Directors also receive regular briefings
Board Composition from, amongst others, the auditors, investment strategists,
The Board currently consists of six non-executive Directors, risk specialists, depositary and legal advisers regarding
(including one independent Director). The Board is committed any proposed product developments or changes in laws or
to maintaining an appropriate balance of skills, experience, regulations that could affect the Company.
independence and knowledge amongst its members.
Board’s Responsibilities
The Directors’ biographies, on pages 14 and 15, collectively The Board meets at least quarterly and also on an ad hoc basis
demonstrate a breadth of investment knowledge and as required. The Board is supplied with information in a timely
experience, business and financial skills and legal and manner and in a form and of a quality appropriate to enable it
regulatory familiarity which enables them to provide effective to discharge its duties. The Board is responsible for the long-
strategic leadership, oversight and proper governance of the term success of the Company and recognises its responsibility
Company. The Board of Directors will propose at the 2018 to provide leadership, direction and control to the Company
Annual General Meeting of shareholders that the number of within a framework of prudent and effective controls which
directors be increased to seven and will propose the election of enables risk to be assessed and managed. The Board reserves
Dr Martha Boeckenfeld as an Independent Director. BlackRock to itself decisions relating to the determination of investment
considers this compositions to be a suitable and appropriate policy and objectives, any change in investment strategy and
balance for the Board. entering into any material contracts. The Board also approves
the prospectus and any addenda to it, circulars to shareholders,
Article 13 of the Company’s Articles of Incorporation in financial statements and other relevant legal documentation.
accordance with Luxembourg law, provides that Directors shall
be elected by the shareholders at their annual general meeting The Chairmanʼs main responsibility is to lead and manage the
for a period ending at the next annual general meeting and Board, encourage critical discussions and promote effective
until their successors are elected. Any Director who resigns communication within the Board. In addition, he is responsible
his/her position is obliged to confirm to the Board and the for promoting best practice corporate governance and effective
CSSF that the resignation is not connected with any issues communication with shareholders.
with or claims against the Company.
The Directors have access to the advice and services of asset value and preparation of the financial statements of the
external counsel and the resources of BIM UK and BlackRock Company, subject to the overall supervision of the Directors
(Luxembourg) S.A. (the “Management Company”) should they and the Management Company. The Administrator is a
be needed. Where necessary, in the furtherance of their duties, subsidiary of State Street Bank & Trust Co. The Company has
the Board and individual Directors may seek independent appointed State Street Bank Luxembourg S.C.A. as Depositary
professional advice. The Board has responsibility for ensuring of its assets, which has responsibility for safe-keeping of
that the Company keeps proper accounting records which such assets, pursuant to the regulations. The Depositary is a
disclose with reasonable accuracy at any time the financial subsidiary of State Street Bank & Trust Co. The Management
position of the Company and which enable it to ensure that Company has delegated transfer agent and share registration
the financial statements comply with relevant accounting services to J.P. Morgan Bank Luxembourg S.A.
standards. It is the Board’s responsibility to present a balanced
and understandable assessment of the Company’s financial The Management Company reports to the Board on a quarterly
position, which extends to interim financial statements and basis and by exception where necessary. Reporting is in place
other reports made available to shareholders and the public. to ensure that the Board can effectively oversee the actions of
The Board is responsible for taking reasonable steps for its delegates.
safeguarding the assets of the Company and for taking
The Management Company is responsible for the risk
reasonable steps in the prevention and detection of fraud and
management and internal controls of the Company and
other irregularities.
for reviewing their effectiveness, for ensuring that financial
Insurance information published or used within the business is reliable,
The Company maintains appropriate Directors’ and Officers’ and for regularly monitoring compliance with regulations
liability insurance cover. governing the operation of the Company. The Management
Company reviews the effectiveness of the internal control and
Delegation of Responsibilities risk management systems on an ongoing basis to identify,
As an open ended variable capital investment company most evaluate and manage the Company’s significant risks. As part
of the Company’s day-to-day management and administration of that process, there are procedures designed to capture
is delegated to BlackRock Group companies such as the and evaluate any failings or weaknesses. Should a case be
Management Company which employs dedicated compliance categorised by the Board as significant, procedures exist to
and risk professionals, the Investment Advisers and other third ensure that necessary action is taken to remedy the failings.
party service providers. The Board has delegated the following
areas of responsibility : The Board is also responsible for establishing and maintaining
adequate internal control and risk management systems of
Management and Administration the Company in relation to the financial reporting process.
Such systems are designed to manage rather than eliminate
The Board has delegated the investment management, the risk of failure to achieve the Company’s financial reporting
distribution and administration of the Company and its Funds objectives. The Company has procedures in place to ensure
to the Management Company. The Management Company has all relevant accounting records are properly maintained
delegated the management of the investment portfolio to the and are readily available, including production of annual
Investment Advisers. The Investment Advisers operate under and interim financial statements. These procedures include
guidelines determined by the Board and as detailed in the appointing the Administrator to maintain the accounting records
Company’s prospectus relating to the Company’s Funds. The of the Company independently of the Investment Adviser
relevant Investment Advisers have direct responsibility for the and the Depositary. The financial statements are prepared
decisions relating to the day-to-day running of the Company’s in accordance with applicable law and Generally Accepted
Funds and are accountable to both the Management Company Accounting Principles (“GAAP”) and are approved by the Board
and the Company for the investment performance of the of Directors of the Company. The accounting information given
Funds. The Board has also delegated the exercise of voting in the annual report is required to be audited and the Audit
rights attaching to the securities held in the portfolio to the report, including any qualifications, is reproduced in full in the
respective Investment Advisers who may in turn delegate to annual report of the Company.
BIM UK. Voting on behalf of shareholders is done in a manner
which is believed to be in the best economic interest of The control processes over the risks identified, covering
shareholders as long-term investors. financial, operational, compliance and risk management, is
embedded in the operations of the Management Company,
The Management Company has delegated its responsibilities BIM UK and other parties including the Administrator and the
for administrative services of the Company and its Funds to Depositary. There is a monitoring and reporting process to
State Street Bank Luxembourg S.C.A (“the Administrator”). review these controls, which has been in place throughout the
The Administrator has responsibility for the administration period under review and up to the date of this report, carried
of the Company’s affairs including the calculation of the net out by BIM UK’s corporate audit department.
BIM UK’s internal audit and operational risk units report to the Directors’ Biographies
Board through the Management Company on a quarterly basis.
The Management Company also receives a report from the Paul Freeman (Chairman) (British) (appointed 17 July
Administrator and the Depositary on the internal controls of 2017) : Mr Freeman currently serves as a Director on the
the administrative and custodial operations of the Company. boards of a number of BlackRock Group companies and
The Board recognises that these control systems can only be investment funds. He was until December 2015 a Managing
designed to manage rather than eliminate the risk of failure Director of BlackRock, which he had joined in August 2005
to achieve fund objectives, and to provide reasonable, but (which then was Merrill Lynch Investment Managers).
not absolute, assurance against material misstatement or Up until July 2011 Mr Freeman was the Head of Product
loss, and relies on the operating controls established by the Development and Range Management for the EMEA region
service providers. with responsibility for the development and ongoing product
management of all funds domiciled in EMEA and distributed
Financial Reporting on a cross-border basis by BlackRock. Between July 2011 and
The Company prepares its financial statements under December 2015 Mr Freeman worked closely with BlackRock’s
Luxembourg GAAP and on a going concern basis. Government affairs team and served on various internal
governance committees and on the boards of a number of
Remuneration
group subsidiaries and managed funds. Mr Freeman has
The Company is an investment company and has no
worked in the financial services industry for over 35 years and,
employees or executive Directors. No Director (past or
prior to BlackRock, has held senior management positions
present) has any entitlement to a pension from the Company,
at Schroders, Rothschild Asset Management, Henderson
and the Company has not awarded any share options or
Investors and GT Management (now part of Invesco).
long-term performance incentives. No element of Directors’
Mr Freeman is a Chartered Accountant.
remuneration is performance-related. Those Directors who
are also employees of the BlackRock Group are not entitled Francine Keiser (Luxembourger) : Ms Keiser is a former
to receive a Director’s fee. All other Directors are paid fees Partner of Linklaters LLP and is now a consultant to the firm.
which are submitted for approval by the shareholders at She has been a member of the Luxembourg Bar since 1989.
the annual general meeting and are disclosed on page Ms Keiser is an experienced investment funds lawyer with
138. The Board believes that the level of remuneration for wide expertise in all legal aspects of investment management,
those Directors who take a fee properly reflects the time in particular in the UCITS area. She serves as a Director
commitment and responsibilities of their roles. The maximum on the Boards of flagship funds of several major fund
amount of remuneration payable to the Directors is approved promoters, including BlackRock Global Funds and BlackRock
by the Board. Strategic Funds.
Communication with Shareholders Geoffrey D. Radcliffe (British & Luxembourger dual
The Board is responsible for convening the annual general nationality, Luxembourg resident) : Mr Radcliffe is a
meeting and all other general meetings of the Company. Managing Director of BlackRock and is based in Luxembourg.
Shareholders have the opportunity to, and are encouraged He is a member of the BlackRock Business Operations &
to attend and vote at general meetings. Notice of general Technology, Global Accounting and Product Services team
meetings is issued in accordance with the Articles of and heads Product Oversight and Governance International
Incorporation of the Company and notice of the annual general and Alternatives International for BlackRock EMEA & Asia
meeting is sent out at least 8 days in advance of the meeting. Pacific. Mr Radcliffe is a Fellow of The Institute of Chartered
All substantive matters put before a general meeting are dealt Accountants in England and Wales and an Associate of The
with by way of separate resolution. Proxy voting figures are Chartered Institute of Bankers. He has 30+ years of mutual
noted by the Chairman of the general meeting. fund, accounting and banking experience in Luxembourg,
The proceedings of general meetings are governed by the Bermuda, London and the Isle of Man. Mr Radcliffe joined
Articles of Incorporation of the Company. the BlackRock Group in 1998. He serves as a Director on the
Board of the Management Company and also on the Boards
The Board has reporting procedures in place such that of a number of BlackRock investment funds. He has been a
client communication with BIM UK is reported to the Board, Member of the Board of Directors of ALFI (Luxembourg Fund
including shareholder complaints. In addition to this BIM UK Industry Association) since 2013.
has been appointed as Principal Distributor and is tasked with
actively managing the relationship between the Company and
its shareholders.
Barry O’Dwyer (Irish) : Mr O’Dwyer is a Managing Director Asset Management in multiple distribution roles in Chicago,
at BlackRock. He is the Head of Fund Governance for London and Frankfurt. Mr. Gruener holds a German Banker
BlackRock’s European open-ended fund ranges and is the qualification and a BA honors degree from the Cambridge
Chief Operating Officer for BlackRock’s Irish business. He Polytechnic University in Finance and Controlling. He also
serves as a Director on the boards of a number of BlackRock holds a degree from the Berlin School of Economics in
corporate, fund, and management companies domiciled in Business Administration and Finance
Ireland, Luxembourg, Switzerland and Germany and on the
board of BlackRock’s UK Life company. He was the Chairman Frank Le Feuvre (British nationality, Jersey resident)
of the Irish Funds Industry Association 2014-2015, is a board (resigned 29 September 2017) : Until September 2017,
Director of Financial Services Ireland and is a member of An Mr Le Feuvre was the Country Manager for the Channel
Taoiseach’s Financial Services Industry Advisory Committee. Islands and was a member of BlackRock's Global Client Group.
He joined BlackRock Advisors (UK) Limited in 1999 as head He was also the Managing Director of BlackRock (Channel
of risk management and moved to his present role in 2006. Islands) Limited. Mr Le Feuvre’s service with the firm dated
Prior to joining BlackRock Advisors (UK) Limited, Mr O’Dwyer back to 1972, including his years with MLIM, which merged
worked as risk manager at Gartmore Investment Management with BlackRock in 2006. At MLIM, he was the Head of the
and at HypoVereinsbank and National Westminster Bank. Jersey business and was the Managing Director of Merrill
Mr O’Dwyer graduated from Trinity College Dublin with a Lynch Investment Management (Channel Islands) Limited.
degree in Business Studies and Economics in 1991. He holds Mr Le Feuvre also served as the Director on the Boards
a Chartered Association of Certified Accountants qualification of BlackRock Global Funds and BlackRock Strategic Funds.
and an MBA from London City University Business School.
Nicholas C.D. Hall (ex-Chairman) (British) (resigned
Robert Hayes (British) : Mr Hayes is a Managing Director, 31 May 2017) : Mr Hall was, until he retired in May 2009,
is Head of Investment Oversight for the BlackRock EMEA General Counsel of BlackRock International (previously known
business and CEO of BlackRock Fund Managers Limited. The as Merrill Lynch Investment Managers International) based in
Investment Oversight team, which is part of Strategic Product London which position he held from his appointment in August
Management, is responsible for establishing and reviewing 1998. He joined the Group in 1983. He was educated at St.
investment expectations for all BlackRockʼs Retail Funds in Catharine’s College, Cambridge graduating with a MA (Law)
the EMEA region. He also chairs the Investment Committee degree in 1975. He qualified as a solicitor in England and
and serves as a Director of BlackRock Life Limited, BlackRock Wales in 1978 and in Hong Kong in 1987. He was
Global Funds SICAV and BlackRock Strategic Funds SICAV. a non-executive Director of BlackRock Investment
Mr. Hayesʼ service with the firm dates back to 2001, including Management (UK) Limited, BlackRock Advisors (UK) Limited,
his years with Merrill Lynch Investment Managers (MLIM), BlackRock Group Limited, Chairman of BlackRock Life Limited,
which merged with BlackRock in 2006. At MLIM he was Head BlackRock Global Funds and BlackRock Strategic Funds
of Strategic Advice and immediately before his current role he and served on the Boards of a number of other BlackRock
was Head of Client Strategy in our Client Solutions business. entities and sponsored funds. Mr Hall chaired the BlackRock
Prior to joining the firm, Mr. Hayes was a Partner with Watson Group Limited EMEA Conflicts Management Committee and
Wyatt Partners, as an investment consultant for large pension is a member of the BlackRock Group Limited EMEA Audit
funds and institutional investors. Earlier in his career, Mr Committee, Nominations Committee and Risk Committee.
Hayes was a UK Equity Investment Manager at ICI Pension
Fund and Head of Institutional Investment at M&G Investment
Management. Mr. Hayes earned a BSc degree in Mathematics
from Southampton University in 1983.
The below disclosures are made in respect of the remuneration The MDCC directly retains an independent compensation
policies of the BlackRock Group (“BlackRock”), as they apply to consultant, Semler Brossy Consulting Group LLC, which
BlackRock (Luxembourg) S.A. (the “Management Company”). has no relationship with BlackRock, Inc. or the BlackRock, Inc.
The disclosures are made in accordance with the Directive Board that would interfere with its ability to provide independent
2009/65/EC on the coordination of laws, regulations and advice to the MDCC on compensation matters.
administrative provisions relating to UCITS, as amended,
including in particular by Directive 2014/91/EU of the European The BlackRock, Inc. Board has determined that all
Parliament and of the council of 23 July 2014, (the “Directive”), of the members of the MDCC are “independent” within
and the “Guidelines on sound remuneration policies under the meaning of the listing standards of the New York Stock
the UCITS Directive and AIFMD” issued by the European Exchange (“NYSE”), which requires each meet a “non-
Securities and Markets Authority. employee director” standard.
BlackRock’s UCITS Remuneration Policy (the “UCITS The MDCC held 10 meetings during 2017. The MDCC charter
Remuneration Policy”) will apply to the European Economic is available on BlackRock, Inc.’s website (www.blackrock.com).
Area (“EEA”) entities within the BlackRock Group authorised
Through its regular reviews, the MDCC continues to be
as a management company of UCITS funds in accordance
satisfied with the principles of BlackRock’s compensation policy
with the Directive, and will ensure compliance with the
and approach.
requirements of Article 14b of the Directive.
(b) The Management Company’s Board
The Management Company has adopted the UCITS
The Management Company’s Board has the task of supervising
Remuneration Policy, a summary of which is set out below.
and providing oversight of the UCITS Remuneration Policy as
Remuneration Governance it applies to the Management Company and its Identified Staff.
BlackRock’s remuneration governance in EMEA operates
The Management Company’s Board (through independent
as a tiered structure which includes: (a) the Management
review by the relevant control functions) remains satisfied with
Development and Compensation Committee (“MDCC”)
the implementation of the UCITS Remuneration Policy as it
(which is the global, independent remuneration committee
applies to the Management Company and its Identified Staff.
for BlackRock, Inc. and all of its subsidiaries, including
the Management Company); and (b) the Management Decision-making process
Company’s Board of Directors (the “Management Company’s Remuneration decisions for employees are made once
Board”). The MDCC is responsible for the determination annually in January following the end of the performance
of BlackRock’s remuneration policies. year. This timing allows full-year financial results to be
considered along with other non-financial goals and objectives.
(a) MDCC
Although the framework for remuneration decision-making
The MDCC’s purposes include:
is tied to financial performance, significant discretion
is used to determine individual variable remuneration
providing oversight of:
based on achievement of strategic and operating results
BlackRock’s executive compensation programmes;
and other considerations such as management and
BlackRock’s employee benefit plans; and
leadership capabilities.
such other compensation plans as may be established
by BlackRock from time to time for which the MDCC No set formulas are established and no fixed benchmarks are
is deemed as administrator; used in determining annual incentive awards. In determining
specific individual remuneration amounts, a number of
reviewing and discussing the compensation discussion factors are considered including non-financial goals and
and analysis included in the BlackRock, Inc. annual proxy objectives and overall financial and investment performance.
statement with management and approving the MDCC’s These results are viewed in the aggregate without any
report for inclusion in the proxy statement; specific weighting, and there is no direct correlation between
any particular performance measure and the resulting annual
reviewing, assessing and making reports incentive award. The variable remuneration awarded to
and recommendations to the BlackRock, Inc. Board any individual(s) for a particular performance year may also
of Directors (the “BlackRock, Inc. Board”) as appropriate be zero.
on BlackRock’s talent development and succession
planning, with the emphasis on performance and succession
at the highest management levels; and
Annual incentive awards are paid from a bonus pool. Link between pay and performance
There is a clear and well-defined pay-for-performance
The size of the projected bonus pool, including cash and equity philosophy and compensation programmes which are designed
awards, is reviewed throughout the year by the MDCC and the to meet the following key objectives as detailed below:
final total bonus pool is approved after year-end. As part
of this review, the MDCC receives actual and projected
appropriately balance BlackRock’s financial results between
financial information over the course of the year as well
shareholders and employees;
as final year-end information. The financial information that
the MDCC receives and considers includes the current year
attract, retain and motivate employees capable
projected income statement and other financial measures
of making significant contributions to the long-term
compared with prior year results and the current year budget.
success of the business;
The MDCC additionally reviews other metrics of BlackRock’s
financial performance (e.g., net inflows of Assets Under
align the interests of senior employees with those
Management (“AUM”) and investment performance) as well
of shareholders by awarding BlackRock Inc.’s stock
as information regarding market conditions and competitive
as a significant part of both annual and long-term
compensation levels.
incentive awards;
The MDCC regularly considers management’s
recommendation as to the percentage of preincentive operating control fixed costs by ensuring that compensation expense
income that will be accrued and reflected as a compensation varies with profitability;
expense throughout the year for the cash portion of the total
annual bonus pool (the “accrual rate”). The accrual rate link a significant portion of an employee’s total
of the cash portion of the total annual bonus pool may be compensation to the financial and operational performance
modified by the MDCC during the year based on its review of the business as well as its common stock performance;
of the financial information described above. The MDCC does
not apply any particular weighting or formula to the information discourage excessive risk-taking; and
it considers when determining the size of the total bonus
pool or the accruals made for the cash portion of the total ensure that client interests are not negatively impacted
bonus pool. by remuneration awarded on a short-term, mid-term and/or
long-term basis.
Following the end of the performance year, the MDCC
approves the final bonus pool amount. Driving a high-performance culture is dependent on
the ability to measure performance against objectives,
As part of the year-end review process the Enterprise Risk values and behaviours in a clear and consistent way. Line
and Regulatory Compliance departments report to the MDCC Management Companies use a 5-point rating scale to provide
on any activities, incidents or events that warrant consideration an overall assessment of an employee’s performance,
in making compensation decisions. and employees also provide a self-evaluation. The overall,
final rating is reconciled during each employee’s performance
Individuals are not involved in setting their own remuneration.
appraisal. Employees are assessed on the manner
Control functions in which performance is attained as well as the absolute
Each of the control functions (Enterprise Risk, Legal & performance itself.
Compliance, and Internal Audit) has its own organisational
In keeping with the pay-for-performance philosophy, ratings are
structure which is independent of the business units.
used to differentiate and reward individual performance – but
The head of each control function is either a member of the
do not pre-determine compensation outcomes. Compensation
Global Executive Committee (“GEC”), BlackRock’s global
decisions remain discretionary and are made as part
management committee, or has a reporting obligation to the
of the year-end compensation process.
Manager’s Board.
When setting remuneration levels other factors are considered,
Functional bonus pools are determined with reference
as well as individual performance, which may include:
to the performance of each individual function.
The remuneration of the senior members of control functions
is directly overseen by the Committee. the performance of the Management Company, the funds
managed by the Management Company and/or the relevant
functional department;
factors relevant to an employee individually; relationships The portion deferred into stock vests in three equal instalments
with clients and colleagues; teamwork; skills; any conduct over the three years following grant.
issues; and, subject to any applicable policy, the impact that
Supplementary to the annual discretionary bonus as
any relevant leave of absence may have on contribution
described above, equity awards from the “Partner Plan”
to the business);
and “Targeted Equity Award Plan” are made to select senior
leaders to provide greater linkage with future business results.
the management of risk within the risk profiles appropriate
The long-term incentive awards have been established
for BlackRockʼs clients;
individually to provide meaningful incentive for continued
performance over a multi-year period recognising the scope
strategic business needs, including intentions
of the individual’s role, business expertise and leadership skills.
regarding retention;
Selected senior leaders are eligible to receive performance-
market intelligence; and adjusted equity-based awards from the “BlackRock
Performance Incentive Plan” (“BPIP”). Awards made from
criticality to business. the BPIP have a three-year performance period based
on a measurement of As Adjusted Operating Margin(1) and
A primary product tool is risk management and, while Organic Revenue Growth(2). Determination of pay-out will
employees are compensated for strong performance in their be made based on the firm’s achievement relative to target
management of client assets, they are required to manage risk financial results at the conclusion of the performance period.
within the risk profiles appropriate for their clients. Therefore, The maximum number of shares that can be earned is 165%
employees are not rewarded for engaging in high-risk of the award in those situations where both metrics achieve
transactions outside of established parameters. Remuneration pre-determined financial targets. No shares will be earned
practices do not provide undue incentives for short-term where the firm’s financial performance in both of the above
planning or short-term financial rewards, do not reward metrics is below a pre-determined performance threshold.
unreasonable risk and provide a reasonable balance between These metrics have been selected as key measures
the many and substantial risks inherent within the business of shareholder value which endure across market cycles.
of investment management, risk management and advisory
services. A limited number of investment professionals have a portion
of their annual discretionary bonus (as described above)
BlackRock operates a total compensation model awarded as deferred cash that notionally tracks investment
for remuneration which includes a base salary, which in selected products managed by the employee. The intention
is contractual, and a discretionary bonus scheme. of these awards is to align investment professionals with
the investment returns of the products they manage through
BlackRock operates an annual discretionary bonus scheme.
the deferral of compensation into those products. Clients
Although all employees are eligible to be considered
and external evaluators have increasingly viewed more
for a discretionary bonus, there is no contractual obligation
favourably those products where key investors have “skin
to make any award to an employee under its discretionary
in the game” through significant personal investments. These
bonus scheme. In exercising discretion to award
awards vest in equal instalments over the three years following
a discretionary bonus, the factors listed above (under the
grant.
heading “Link between pay and performance”) may be
taken into account in addition to any other matters which Identified Staff
become relevant to the exercise of discretion in the course The UCITS Remuneration Policy sets out the process that will
of the performance year. be applied to identify staff as Identified Staff, being categories
of staff of the Management Company, including senior
Discretionary bonus awards for all employees, including
management, risk takers, control functions and any employee
executive officers, are subject to a guideline that determines
receiving total remuneration that takes them into the same
the portion paid in cash and the portion paid in BlackRock, Inc.
remuneration bracket as senior management and risk takers,
stock and subject to additional vesting/clawback conditions.
whose professional activities have a material impact on the
Stock awards are subject to further performance adjustment
risk profiles of the Management Company or of the funds
through variation in BlackRock, Inc.’s share price over the
it manages.
vesting period. As total annual compensation increases,
a greater portion is deferred into stock. The MDCC adopted The list of Identified Staff will be subject to regular review,
this approach in 2006 to substantially increase the retention being formally reviewed in the event of, but not limited to:
value and shareholder alignment of the compensation package
for eligible employees, including the executive officers.
organisational changes;
(1) As Adjusted Operating Margin: As reported in BlackRockʼs external filings, reflects adjusted Operating Income divided by Total Revenue net of distribution and servicing expenses and
amortisation of deferred sales commissions.
(2) Organic Revenue Growth: Equal to net new base fees plus net new Aladdin revenue generated in the year (in US dollars).
new business initiatives; Members of staff and senior management of the Management
Company typically provide both UCITS and non-UCITS related
changes in significant influence function lists; services in respect of multiple funds, clients and functions
of the Management Company and across the broader
changes in role responsibilities; and BlackRock Group. Therefore, the figures disclosed are a sum
of each individual’s portion of remuneration attributable
revised regulatory direction. to the Management Company’s UCITS-related business
according to an objective apportionment methodology which
Quantitative Remuneration Disclosure acknowledges the multiple-service nature of the Management
The Management Company is required under the UCITS Company. Accordingly the figures are not representative of any
to make quantitative disclosures of remuneration. These individual’s actual remuneration or their remuneration structure.
disclosures are made in line with BlackRock’s interpretation
of currently available regulatory guidance on quantitative The amount of the total remuneration awarded by the
remuneration disclosures. As market or regulatory practice Management Company to its staff which has been attributed
develops BlackRock may consider it appropriate to make to the Management Company’s UCITS-related business
changes to the way in which quantitative remuneration in respect of the Management Company’s financial year
disclosures are calculated. Where such changes are made, ending 31 December 2017 is USD 89.7 million. This figure
this may result in disclosures in relation to a fund not being is comprised of fixed remuneration of USD 5.3 million and
comparable to the disclosures made in the prior year, variable remuneration of USD 84.4 million. There were a total
or in relation to other BlackRock fund disclosures in that of 104 beneficiaries of the remuneration described above.
same year. The amount of the aggregate remuneration awarded by
Disclosures are provided in relation to (a) the staff of the the Management Company, which has been attributed
Management Company; (b) staff who are senior management; to the Management Company’s UCITS-related business
and (c) staff who have the ability to materially affect the risk in respect of the Management Company’s financial year
profile of the Company. ending 31 December 2017, to its senior management was
USD 0.2 million, and to members of its staff whose actions
All individuals included in the aggregated figures disclosed are have a material impact on the risk profile of the Management
rewarded in line with BlackRock’s remuneration policy for their Company’s UCITS-related business was USD 89.5 million.
responsibilities across the relevant BlackRock business area.
As all individuals have a number of areas of responsibilities,
only the portion of remuneration for those individuals’ services
attributable to the Company is included in the aggregate
figures disclosed.
Assets
Securities portfolio at cost 6,474,648,740 429,681,121 2,383,108,911 339,874,660 590,157,157 401,275,360
Unrealised appreciation 555,976,410 84,329,121 6,313,398 35,612,172 24,782,642 17,665,888
Securities portfolio at market value 2(a) 7,030,625,150 514,010,242 2,389,422,309 375,486,832 614,939,799 418,941,248
Cash at bank 2(a) 75,838,833 7,840,792 32,756,178 1,599,544 2,173,360 1,340,753
Cash collateral 2(a) 5,751,187 – 5,631,176 – 97,389 –
Due from broker 13 4,009,523 661,593 – 207,320 – –
Interest and dividends receivable 2(a) 55,076,803 1,479,695 30,097,279 1,675,052 5,730,235 4,483,092
Receivable for investments sold 2(a) 1,783,170 – 1,056,478 – – –
Receivable for Fund shares subscribed 2(a) 33,169,350 1,141,855 1,899,413 3,380,666 3,596,586 3,576,288
Net unrealised appreciation on:
Futures contracts 2(d) 59,984 – – 12,292 – –
Other assets 433,505 11,694 45,286 15,793 104,804 3,341
Liabilities
Cash collateral payable 2(a) 5,751,187 – 5,631,176 – 97,389 –
Income distribution payable 2(a) 8,934,052 135,199 2,185,752 243,843 2,128,474 22,704
Payable for investments purchased 2(a) 10,057,155 825,305 4,302,540 – – 2,538,194
Payable for Fund shares redeemed 2(a) 9,393,871 315,707 5,062,822 516,773 288,294 583,910
Net unrealised depreciation on:
Futures contracts 2(d) 1,379,721 241,965 – – – –
Open forward foreign exchange transactions 2(d) 2,036,159 – 2,032,480 – – –
Accrued expenses and other liabilities 4,5,6 3,526,489 662,788 656,014 246,381 157,457 157,703
Director Director
The notes on pages 135 to 141 form an integral part of these financial statements.
Assets
Securities portfolio at cost 345,211,630 156,380,815 428,759,349 327,765,105 763,190,759
Unrealised appreciation 13,524,192 25,861,106 158,054,530 19,918,138 151,782,823
Securities portfolio at market value 2(a) 358,735,822 182,241,921 586,813,879 347,683,243 914,973,582
Cash at bank 2(a) 2,283,336 1,393,607 5,014,809 3,747,815 16,500,809
Cash collateral 2(a) – – – – –
Due from broker 13 – 56,046 550,113 447,212 2,039,081
Interest and dividends receivable 2(a) 2,438,514 1,506,257 555,744 2,036,939 2,312,493
Receivable for investments sold 2(a) 53,927 203,847 157,667 – 311,251
Receivable for Fund shares subscribed 2(a) 154,989 298,070 5,782,061 854,124 10,033,860
Net unrealised appreciation on:
Futures contracts 2(d) – 44,837 – – –
Other assets 1,003 1,530 3,617 8,050 209,598
Liabilities
Cash collateral payable 2(a) – – – – –
Income distribution payable 2(a) 14,003 38,643 90,812 32,993 3,485,299
Payable for investments purchased 2(a) 272,500 203,847 157,667 – 1,167,515
Payable for Fund shares redeemed 2(a) 74,575 296,641 1,062,498 474,283 395,728
Net unrealised depreciation on:
Futures contracts 2(d) – – 247,648 142,814 747,294
Open forward foreign exchange transactions 2(d) 3,679 – – – –
Accrued expenses and other liabilities 4,5,6 147,649 124,646 250,045 324,500 668,869
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
iShares iShares
Emerging Emerging iShares
BlackRock Markets Markets Europe
Global Equity Government Equity
Index Funds Index Bond Index Index
Note Combined Fund (LU) Fund (LU) Fund (LU)
USD USD USD EUR
Net assets at the beginning of the year 6,216,332,570 436,821,114 1,875,238,033 428,391,758
Income
Bank interest 2(c) 447,899 – 18,050 268,847
Bond interest 2(c) 125,554,377 – 109,033,997 –
Dividends, net of withholding taxes 2(c) 79,357,360 11,418,576 – 14,440,993
Securities lending 2(c) 1,580,867 146,326 718,195 139,500
Expenses
Bank interest 2(c) 52,458 16,431 – –
Administration fees 5 2,548,879 236,697 668,581 170,868
Depositary fees 2(i),6 2,162,851 470,969 298,575 198,018
Management fees 4 6,200,970 1,206,857 1,461,928 400,023
Net realised gain for the year 303,495,783 24,364,554 59,815,373 12,614,856
Net change in unrealised appreciation/(depreciation) for the year 106,342,127 81,931,475 (35,836,209) (21,761,435)
Increase/(decrease) in net assets as a result of movements in share capital 137,102,476 (29,344,916) 438,531,967 (51,059,445)
Net assets at the end of the year 7,165,668,871 522,964,907 2,441,037,335 381,370,502
* The combined figures have been calculated using the average exchange rates throughout the year. The resulting Foreign exchange adjustment of USD 224,006,249 represents the movement
in exchange rates between 31 March 2017 and 31 March 2018. This is a notional amount, which has no impact on the Net Assets of the individual Funds.
The notes on pages 135 to 141 form an integral part of these financial statements.
iShares iShares
iShares Euro Euro Global
Aggregate Government Government iShares Japan
Bond Index Bond Index Bond Index Equity Index
Note Fund (LU) Fund (LU) Fund (LU) Fund (LU)
EUR EUR USD USD
Net assets at the beginning of the year 462,209,234 436,468,280 95,013,157 150,842,636
Income
Bank interest 2(c) – – 98,795 –
Bond interest 2(c) 6,753,084 4,722,804 3,116,145 –
Dividends, net of withholding taxes 2(c) – – – 3,204,681
Securities lending 2(c) 51,893 63,996 7,942 38,539
Expenses
Bank interest 2(c) 15,003 4,719 – 12,991
Administration fees 5 167,269 140,046 108,799 69,965
Depositary fees 2(i),6 105,871 95,863 108,698 105,233
Management fees 4 160,557 335,135 131,278 141,900
Net realised gain for the year 312,927 4,869,258 1,412,505 12,394,729
Net change in unrealised appreciation/(depreciation) for the year 4,776,784 3,165,880 16,937,667 12,528,997
Increase/(decrease) in net assets as a result of movements in share capital 154,139,033 (23,627,148) 246,946,287 6,472,725
Net assets at the end of the year 623,970,559 425,042,211 363,155,185 185,082,338
The notes on pages 135 to 141 form an integral part of these financial statements.
iShares iShares
North Pacific iShares
America ex Japan World Equity
Equity Index Equity Index Index
Note Fund (LU) Fund (LU) Fund (LU)
USD USD USD
Expenses
Bank interest 2(c) – – –
Administration fees 5 317,321 180,175 408,807
Depositary fees 2(i),6 146,212 238,383 327,857
Management fees 4 599,069 788,871 824,841
Net change in unrealised appreciation/(depreciation) for the year 2,340,754 9,675,449 34,904,797
Increase/(decrease) in net assets as a result of movements in share capital (282,492,585) 19,543,641 (355,357,845)
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
155 USD MSCI Emerging Markets Index June 2018 9,072,150 (241,965)
Total 9,072,150 (241,965)
Sector Breakdown
as at 31 March 2018
% of Net
Assets
Financial 26.03
Communications 18.86
Technology 13.10
Consumer, Non-cyclical 9.60
Consumer, Cyclical 7.57
Energy 7.55
Industrial 6.03
Basic Materials 5.91
Utilities 2.48
Diversified 1.16
Securities portfolio at market value 98.29
Other Net Assets 1.71
100.00
The notes on pages 135 to 141 form an integral part of these financial statements.
BONDS Azerbaijan
USD 5,100,000 Republic of Azerbaijan International
Angola Bond RegS 4.75% 18/3/2024 5,143,350 0.21
USD 6,550,000 Angolan Government International USD 4,800,000 Republic of Azerbaijan International
Bond RegS 9.50% 12/11/2025* 7,306,918 0.30 Bond RegS 3.50% 1/9/2032 4,038,000 0.17
7,306,918 0.30 USD 9,100,000 Southern Gas Corridor CJSC RegS
6.875% 24/3/2026 10,055,500 0.41
Argentina USD 3,900,000 State Oil Co of the Azerbaijan
USD 1,500,000 Argentine Republic Government Republic RegS 4.75% 13/3/2023 3,888,300 0.16
International Bond 6.25% USD 3,700,000 State Oil Co of the Azerbaijan
22/4/2019 1,544,250 0.06 Republic RegS 6.95% 18/3/2030 4,028,375 0.16
USD 8,100,000 Argentine Republic Government 27,153,525 1.11
International Bond 6.875%
22/4/2021 8,588,025 0.35 Belarus
USD 5,450,000 Argentine Republic Government USD 1,425,000 Republic of Belarus International
International Bond 5.625% Bond ‘144A’ 7.625% 29/6/2027 1,576,050 0.07
26/1/2022* 5,534,475 0.23 USD 3,000,000 Republic of Belarus International
USD 2,500,000 Argentine Republic Government Bond RegS 6.875% 28/2/2023 3,192,375 0.13
International Bond 4.625% USD 1,750,000 Republic of Belarus International
11/1/2023 2,414,375 0.10 Bond RegS 7.625% 29/6/2027 1,935,500 0.08
USD 12,395,000 Argentine Republic Government USD 2,250,000 Republic of Belarus International
International Bond 7.50% Bond RegS 6.20% 28/2/2030 2,228,625 0.09
22/4/2026* 13,293,637 0.54
USD 6,900,000 Argentine Republic Government 8,932,550 0.37
International Bond 6.875%
26/1/2027 7,055,250 0.29 Belize
USD 5,200,000 Argentine Republic Government USD 1,950,000 Belize Government International
International Bond 5.875% Bond RegS (Step-up coupon)
11/1/2028 4,916,600 0.20 4.938% 20/2/2034 1,187,414 0.05
USD 1,750,000 Argentine Republic Government 1,187,414 0.05
International Bond 6.625%
6/7/2028* 1,738,625 0.07 Bolivia
USD 3,385,922 Argentine Republic Government USD 2,150,000 Bolivian Government International
International Bond 8.28% Bond RegS 4.875% 29/10/2022 2,217,725 0.09
31/12/2033 (traded in Argentina) 3,610,234 0.15 USD 1,650,000 Bolivian Government International
USD 7,318,639 Argentine Republic Government Bond RegS 5.95% 22/8/2023 1,783,782 0.07
International Bond 8.28% USD 4,650,000 Bolivian Government International
31/12/2033 (traded in Bond RegS 4.50% 20/3/2028 4,405,875 0.18
United States) 8,023,058 0.33
8,407,382 0.34
USD 3,519,000 Argentine Republic Government
International Bond 7.125%
6/7/2036* 3,415,190 0.14 Brazil
USD 4,843,000 Argentine Republic Government USD 1,250,000 Banco Nacional de Desenvolvimento
International Bond 7.625% Economico e Social RegS 4.00%
22/4/2046 4,818,785 0.20 14/4/2019* 1,259,619 0.05
USD 4,775,000 Argentine Republic Government USD 1,900,000 Banco Nacional de Desenvolvimento
International Bond 6.875% Economico e Social RegS 6.50%
11/1/2048 4,364,350 0.18 10/6/2019 1,970,319 0.08
USD 9,465,000 Argentine Republic Government USD 1,900,000 Banco Nacional de Desenvolvimento
International Bond (Step-up Economico e Social RegS 5.50%
coupon) 2.50% 31/12/2038 6,365,212 0.26 12/7/2020* 1,971,298 0.08
USD 4,900,000 Argentine Republic Government USD 2,350,000 Banco Nacional de Desenvolvimento
International Bond RegS 7.125% Economico e Social RegS 5.75%
28/6/2117 4,537,400 0.19 26/9/2023 2,502,915 0.10
USD 2,750,000 Banco Nacional de Desenvolvimento
80,219,466 3.29 Economico e Social RegS 4.75%
9/5/2024 2,752,558 0.11
Armenia USD 700,000 Brazilian Government International
USD 1,450,000 Republic of Armenia International Bond 8.875% 14/10/2019* 769,561 0.03
Bond RegS 6.00% 30/9/2020* 1,505,513 0.06 USD 5,450,000 Brazilian Government International
USD 2,250,000 Republic of Armenia International Bond 4.875% 22/1/2021 5,668,000 0.23
Bond RegS 7.15% 26/3/2025* 2,491,403 0.10 USD 4,100,000 Brazilian Government International
3,996,916 0.16 Bond 2.625% 5/1/2023* 3,899,100 0.16
USD 2,700,000 Brazilian Government International
Australia Bond 8.875% 15/4/2024* 3,420,900 0.14
USD 950,000 Baosteel Financing 2015 Pty Ltd USD 8,250,000 Brazilian Government International
RegS 3.875% 28/1/2020 953,985 0.04 Bond 4.25% 7/1/2025 8,208,750 0.34
USD 2,000,000 CNOOC Curtis Funding No 1 Pty Ltd USD 1,475,000 Brazilian Government International
RegS 4.50% 3/10/2023* 2,055,761 0.08 Bond 8.75% 4/2/2025* 1,885,050 0.08
USD 5,150,000 Brazilian Government International
3,009,746 0.12 Bond 6.00% 7/4/2026 5,653,412 0.23
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
El Salvador Honduras
USD 2,600,000 El Salvador Government USD 2,200,000 Honduras Government International
International Bond RegS 7.375% Bond RegS 8.75% 16/12/2020 2,440,097 0.10
1/12/2019 2,728,076 0.11 USD 1,650,000 Honduras Government International
USD 3,075,000 El Salvador Government Bond RegS 7.50% 15/3/2024 1,823,250 0.08
International Bond RegS 7.75% USD 3,000,000 Honduras Government International
24/1/2023 3,355,589 0.14 Bond RegS 6.25% 19/1/2027 3,185,250 0.13
USD 4,650,000 El Salvador Government 7,448,597 0.31
International Bond RegS 5.875%
30/1/2025* 4,574,430 0.19 Hong Kong
USD 3,850,000 El Salvador Government USD 500,000 CNAC HK Finbridge Co Ltd RegS
International Bond RegS 6.375% 3.00% 19/7/2020 490,443 0.02
18/1/2027 3,821,119 0.16 USD 2,000,000 CNAC HK Finbridge Co Ltd RegS
USD 3,175,000 El Salvador Government 3.50% 19/7/2022 1,937,511 0.08
International Bond RegS 8.625% USD 745,000 CNAC HK Finbridge Co Ltd RegS
28/2/2029* 3,664,315 0.15 4.625% 14/3/2023 749,304 0.03
USD 1,300,000 El Salvador Government USD 600,000 CNAC HK Finbridge Co Ltd RegS
International Bond RegS 8.25% 4.875% 14/3/2025 600,788 0.02
10/4/2032* 1,460,873 0.06 USD 1,200,000 CNAC HK Finbridge Co Ltd RegS
USD 5,425,000 El Salvador Government 4.125% 19/7/2027 1,130,965 0.05
International Bond RegS 7.65% USD 1,200,000 CNAC HK Finbridge Co Ltd RegS
15/6/2035* 5,730,148 0.23 5.125% 14/3/2028 1,206,278 0.05
USD 2,100,000 El Salvador Government
International Bond RegS 7.625% 6,115,289 0.25
1/2/2041* 2,210,247 0.09
Hungary
27,544,797 1.13
USD 1,000,000 Hungary Government International
Bond 4.00% 25/3/2019 1,013,950 0.04
Ethiopia USD 8,700,000 Hungary Government International
USD 4,400,000 Ethiopia International Bond RegS Bond 6.25% 29/1/2020 9,218,694 0.38
6.625% 11/12/2024 4,519,438 0.19 USD 11,650,000 Hungary Government International
4,519,438 0.19 Bond 6.375% 29/3/2021 12,701,179 0.52
USD 8,600,000 Hungary Government International
Gabon Bond 5.375% 21/2/2023* 9,298,062 0.38
USD 6,350,000 Gabon Government International USD 8,750,000 Hungary Government International
Bond RegS 6.375% 12/12/2024 6,287,135 0.26 Bond 5.75% 22/11/2023 9,682,925 0.40
USD 3,200,000 Gabon Government International USD 9,500,000 Hungary Government International
Bond RegS 6.95% 16/6/2025* 3,236,000 0.13 Bond 5.375% 25/3/2024* 10,361,650 0.42
USD 5,200,000 Hungary Government International
9,523,135 0.39
Bond 7.625% 29/3/2041* 7,528,768 0.31
USD 2,200,000 Magyar Export-Import Bank Zrt RegS
Georgia 4.00% 30/1/2020 2,231,856 0.09
USD 2,300,000 Georgia Government International USD 2,900,000 MFB Magyar Fejlesztesi Bank Zrt
Bond RegS 6.875% 12/4/2021 2,486,875 0.10 RegS 6.25% 21/10/2020 3,106,538 0.13
USD 2,050,000 Georgian Railway JSC RegS 7.75%
11/7/2022 2,249,875 0.09 65,143,622 2.67
4,736,750 0.19
India
USD 1,650,000 Export-Import Bank of India RegS
Ghana 3.875% 2/10/2019* 1,666,762 0.07
USD 3,050,000 Ghana Government International USD 1,700,000 Export-Import Bank of India RegS
Bond RegS 9.25% 15/9/2022 3,473,493 0.14 2.75% 1/4/2020* 1,684,464 0.07
USD 4,200,000 Ghana Government International USD 1,600,000 Export-Import Bank of India RegS
Bond RegS 7.875% 7/8/2023 4,567,500 0.19 2.75% 12/8/2020 1,582,779 0.06
USD 4,300,000 Ghana Government International USD 3,000,000 Export-Import Bank of India RegS
Bond RegS 8.125% 18/1/2026* 4,625,187 0.19 3.125% 20/7/2021 2,965,024 0.12
12,666,180 0.52 USD 3,550,000 Export-Import Bank of India RegS
4.00% 14/1/2023 3,567,808 0.14
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
Philippines Romania
USD 200,000 Philippine Government International USD 9,950,000 Romanian Government International
Bond 9.875% 15/1/2019 211,687 0.01 Bond RegS 6.75% 7/2/2022 11,063,156 0.45
USD 2,800,000 Philippine Government International USD 6,900,000 Romanian Government International
Bond 8.375% 17/6/2019* 3,000,116 0.12 Bond RegS 4.375% 22/8/2023* 7,098,375 0.29
USD 700,000 Philippine Government International USD 4,150,000 Romanian Government International
Bond 6.50% 20/1/2020* 744,888 0.03 Bond RegS 4.875% 22/1/2024* 4,383,438 0.18
USD 5,100,000 Philippine Government International USD 4,250,000 Romanian Government International
Bond 4.00% 15/1/2021 5,224,695 0.22 Bond RegS 6.125% 22/1/2044 5,115,937 0.21
USD 4,300,000 Philippine Government International 27,660,906 1.13
Bond 4.20% 21/1/2024 4,481,288 0.18
USD 4,150,000 Philippine Government International
Bond 10.625% 16/3/2025* 6,006,461 0.25
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
Sector Breakdown
as at 31 March 2018
% of Net
Assets
Consumer, Non-cyclical 26.91
Financial 22.01
Industrial 10.87
Consumer, Cyclical 10.21
Energy 7.31
Basic Materials 7.28
Communications 5.91
Technology 4.03
Utilities 3.78
Diversified 0.15
Securities portfolio at market value 98.46
Other Net Assets 1.54
100.00
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
Sector Breakdown
as at 31 March 2018
% of Net
Assets
Government 68.10
Financial 18.06
Consumer, Non-cyclical 3.18
Utilities 2.30
Communications 1.72
Industrial 1.50
Consumer, Cyclical 1.44
Energy 1.10
Basic Materials 0.66
Technology 0.41
Diversified 0.08
Securities portfolio at market value 98.55
Other Net Assets 1.45
100.00
The notes on pages 135 to 141 form an integral part of these financial statements.
BONDS Belgium
EUR 640,000 Kingdom of Belgium Government
Austria Bond 4.00% 28/3/2019 668,902 0.16
EUR 700,000 Republic of Austria Government EUR 1,165,000 Kingdom of Belgium Government
Bond 6.25% 15/7/2027 1,062,082 0.25 Bond 4.00% 28/3/2022 1,362,537 0.32
EUR 798,000 Republic of Austria Government EUR 1,243,000 Kingdom of Belgium Government
Bond RegS ‘144A’ 4.35% Bond 5.50% 28/3/2028 1,828,378 0.43
15/3/2019 835,522 0.20 EUR 1,150,000 Kingdom of Belgium Government
EUR 470,000 Republic of Austria Government Bond RegS 3.00% 28/9/2019 1,211,422 0.29
Bond RegS ‘144A’ 1.95% EUR 1,310,000 Kingdom of Belgium Government
18/6/2019 484,547 0.11 Bond RegS ‘144A’ 3.75%
EUR 850,000 Republic of Austria Government 28/9/2020 1,447,615 0.34
Bond RegS ‘144A’ 0.25% EUR 1,325,000 Kingdom of Belgium Government
18/10/2019 861,254 0.20 Bond RegS ‘144A’ 4.25%
EUR 640,000 Republic of Austria Government 28/9/2021 1,537,000 0.36
Bond RegS ‘144A’ 3.90% EUR 830,000 Kingdom of Belgium Government
15/7/2020 704,038 0.17 Bond RegS 4.25% 28/9/2022 993,780 0.23
EUR 1,295,000 Republic of Austria Government EUR 790,000 Kingdom of Belgium Government
Bond RegS ‘144A’ 3.50% Bond RegS 2.25% 22/6/2023 882,035 0.21
15/9/2021 1,465,195 0.34 EUR 600,000 Kingdom of Belgium Government
EUR 170,000 Republic of Austria Government Bond RegS ‘144A’ 0.20%
Bond RegS ‘144A’ 20/9/2022 22/10/2023 603,216 0.14
(Zero Coupon) 170,820 0.04 EUR 1,130,000 Kingdom of Belgium Government
EUR 1,543,000 Republic of Austria Government Bond RegS ‘144A’ 2.60%
Bond RegS ‘144A’ 3.40% 22/6/2024 1,297,613 0.31
22/11/2022 1,794,262 0.42 EUR 450,000 Kingdom of Belgium Government
EUR 940,000 Republic of Austria Government Bond RegS ‘144A’ 0.50%
Bond RegS ‘144A’ 1.75% 22/10/2024 456,620 0.11
20/10/2023 1,026,066 0.24 EUR 1,050,000 Kingdom of Belgium Government
EUR 1,165,000 Republic of Austria Government Bond RegS ‘144A’ 0.80%
Bond RegS ‘144A’ 1.65% 22/6/2025 1,081,847 0.25
21/10/2024 1,270,503 0.30 EUR 750,000 Kingdom of Belgium Government
EUR 620,000 Republic of Austria Government Bond RegS ‘144A’ 4.50%
Bond RegS ‘144A’ 1.20% 28/3/2026 991,193 0.23
20/10/2025 657,975 0.16 EUR 930,000 Kingdom of Belgium Government
EUR 395,000 Republic of Austria Government Bond RegS ‘144A’ 1.00%
Bond RegS ‘144A’ 4.85% 22/6/2026 966,670 0.23
15/3/2026 533,467 0.13 EUR 1,310,000 Kingdom of Belgium Government
EUR 720,000 Republic of Austria Government Bond RegS ‘144A’ 0.80%
Bond RegS ‘144A’ 0.75% 22/6/2027 1,328,471 0.31
20/10/2026 733,939 0.17 EUR 200,000 Kingdom of Belgium Government
EUR 550,000 Republic of Austria Government Bond RegS ‘144A’ 0.80%
Bond RegS ‘144A’ 0.50% 22/6/2028 200,656 0.05
20/4/2027 545,221 0.13 EUR 675,000 Kingdom of Belgium Government
EUR 510,000 Republic of Austria Government Bond RegS ‘144A’ 1.00%
Bond RegS ‘144A’ 0.75% 22/6/2031 676,208 0.16
20/2/2028 512,831 0.12 EUR 707,000 Kingdom of Belgium Government
EUR 535,000 Republic of Austria Government Bond RegS 4.00% 28/3/2032 987,311 0.23
Bond RegS ‘144A’ 2.40% EUR 430,000 Kingdom of Belgium Government
23/5/2034 641,085 0.15 Bond RegS ‘144A’ 3.00%
EUR 903,000 Republic of Austria Government 22/6/2034 548,052 0.13
Bond RegS ‘144A’ 4.15% EUR 1,412,000 Kingdom of Belgium Government
15/3/2037 1,372,876 0.32 Bond RegS ‘144A’ 5.00%
EUR 455,000 Republic of Austria Government 28/3/2035 2,260,019 0.53
Bond RegS ‘144A’ 3.15% EUR 200,000 Kingdom of Belgium Government
20/6/2044* 644,357 0.15 Bond RegS ‘144A’ 1.45%
EUR 390,000 Republic of Austria Government 22/6/2037 205,512 0.05
Bond RegS ‘144A’ 1.50% EUR 510,000 Kingdom of Belgium Government
20/2/2047 400,417 0.09 Bond RegS ‘144A’ 1.90%
EUR 234,000 Republic of Austria Government 22/6/2038 562,489 0.13
Bond RegS ‘144A’ 3.80% EUR 1,175,000 Kingdom of Belgium Government
26/1/2062 404,064 0.10 Bond RegS ‘144A’ 4.25%
EUR 180,000 Republic of Austria Government 28/3/2041 1,848,063 0.43
Bond RegS ‘144A’ 1.50% EUR 675,000 Kingdom of Belgium Government
2/11/2086 165,478 0.04 Bond RegS 3.75% 22/6/2045 1,019,790 0.24
EUR 255,000 Republic of Austria Government EUR 660,000 Kingdom of Belgium Government
Bond RegS ‘144A’ 2.10% Bond RegS ‘144A’ 1.60%
20/9/2117 288,242 0.07 22/6/2047 669,676 0.16
16,574,241 3.90
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
Spain continued
EUR 1,130,000 Spain Government Bond RegS
‘144A’ 1.45% 31/10/2027 1,166,036 0.27
EUR 390,000 Spain Government Bond RegS
‘144A’ 1.40% 30/4/2028 398,525 0.09
EUR 1,316,000 Spain Government Bond RegS
‘144A’ 5.15% 31/10/2028 1,832,668 0.43
EUR 1,600,000 Spain Government Bond RegS
‘144A’ 1.95% 30/7/2030 1,696,224 0.40
EUR 685,000 Spain Government Bond RegS
‘144A’ 2.35% 30/7/2033 747,739 0.18
EUR 1,360,000 Spain Government Bond RegS
‘144A’ 4.20% 31/1/2037 1,879,969 0.44
EUR 1,210,000 Spain Government Bond RegS
‘144A’ 4.90% 30/7/2040 1,847,960 0.44
EUR 1,394,000 Spain Government Bond RegS
‘144A’ 4.70% 30/7/2041 2,095,879 0.49
EUR 860,000 Spain Government Bond RegS
‘144A’ 5.15% 31/10/2044 1,390,861 0.33
EUR 1,120,000 Spain Government Bond RegS
‘144A’ 2.90% 31/10/2046 1,292,301 0.30
EUR 440,000 Spain Government Bond RegS
‘144A’ 2.70% 31/10/2048 483,195 0.11
EUR 545,000 Spain Government Bond RegS
‘144A’ 3.45% 30/7/2066 687,526 0.16
61,735,168 14.52
Total Bonds 418,941,248 98.56
Total Transferable Securities and
Money Market Instruments Admitted to
an Official Stock Exchange Listing
or Dealt in on Another Regulated Market 418,941,248 98.56
ecurities portfolio at market value
S 418,941,248 98.56
Other Net Assets 6,100,963 1.44
Total Net Assets (EUR) 425,042,211 100.00
Sector Breakdown
as at 31 March 2018
% of Net
Assets
Government 98.56
Securities portfolio at market value 98.56
Other Net Assets 1.44
100.00
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
Sector Breakdown
as at 31 March 2018
% of Net
Assets
Consumer, Cyclical 25.93
Industrial 21.70
Consumer, Non-cyclical 15.73
Financial 15.32
Communications 6.39
Basic Materials 5.88
Technology 4.78
Utilities 1.69
Energy 1.05
Securities portfolio at market value 98.47
Other Net Assets 1.53
100.00
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
Sector Breakdown
as at 31 March 2018
% of Net
Assets
Consumer, Non-cyclical 20.41
Financial 19.88
Technology 15.15
Communications 13.41
Industrial 9.29
Consumer, Cyclical 8.20
Energy 6.41
Basic Materials 2.79
Utilities 2.74
Securities portfolio at market value 98.28
Other Net Assets 1.72
100.00
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
Sector Breakdown
as at 31 March 2018
% of Net
Assets
Financial 51.26
Consumer, Non-cyclical 12.19
Basic Materials 7.94
Consumer, Cyclical 6.09
Industrial 5.48
Utilities 4.60
Diversified 4.28
Communications 3.00
Energy 2.82
Technology 0.61
Securities portfolio at market value 98.27
Other Net Assets 1.73
100.00
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
The notes on pages 135 to 141 form an integral part of these financial statements.
130 USD E-Mini S&P 500 Index June 2018 17,008,550 (630,183)
97 EUR EURO STOXX 50 Index June 2018 3,912,476 (43,206)
26 GBP FTSE 100 Index June 2018 2,552,341 (22,795)
3 HKD Hang Seng Index April 2018 574,306 (3,364)
6 AUD SPI 200 Index June 2018 660,960 (28,385)
5 CHF Swiss Market Index June 2018 448,236 (7,233)
15 JPY Topix Index June 2018 2,406,572 (12,128)
Total 27,563,441 (747,294)
Sector Breakdown
as at 31 March 2018
% of Net
Assets
Financial 21.17
Consumer, Non-cyclical 21.00
Technology 10.76
Industrial 10.54
Communications 10.40
Consumer, Cyclical 10.10
Energy 5.90
Basic Materials 4.33
Utilities 2.94
Diversified 0.21
Securities portfolio at market value 97.35
Other Net Assets 2.65
100.00
The notes on pages 135 to 141 form an integral part of these financial statements.
The TERs for the year from 1 April 2017 to 31 March 2018 16. Subsequent Events
are as follows: A new Prospectus was issued on 20 April 2018.
Opinion
We have audited the financial statements of BlackRock Global Index Funds {the « Company ») and of each of its
sub-funds, which comprise the statement of net assets and the portfolio of investments as at 31 March 2018 and
the statement of operations and changes in net assets for the year then ended, and notes to the financial
statements, including a summary of significant accounting policies.
ln our opinion, the accompanying financial statements give a true and fair view of the financial position of the
Company as at 31 March 2018, and of the results of its operations and changes in its net assets for the year
then ended in accordance with Luxembourg legal and regulatory requirements relating to the preparation and
presentation of the financial statements.
We conducted our audit in accordance with the Law of 23 July 2016 on the audit profession {Law of 23 July
2016) and with International Standards on Auditing {ISAs) as adopted for Luxembourg by the "Commission de
Surveillance du Secteur Financier" (CSSF). Our responsibilities under those Law and standards are further
described in the "Responsibilities of Réviseur d'entreprises agréé for the Audit of the Financial Statements"
section of our report. We are also independent of the Company in accordance with the International Ethics
Standards Board for Accountants' Code of Ethics for Professional Accountants (IESBA Code) as adopted for
Luxembourg by the CSSF together with the ethical requirements that are relevant to our audit of the financial
statements, and have fulfilled our other ethical responsibilities under those ethical requirements. We believe
that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Other information
The Board of Directors of the Company is responsible for the other information. The other information comprises the
information included in the annual report but does not include the financial statements and our report of Réviseur
d'entreprises agréé thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of
assurance conclusion thereon.
ln connection with our audit of the financial statements, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial statements or our knowledge
obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we
concluded that there is a material misstatement of this other information, we are required to report this fact. We have
nothing to report in this regards.
Responsibilities of the Board of Directors of the Company and Those Charged with Governance for the Financial
Statements
The Board of Directors of the Company is responsible for the preparation and fair presentation of the financial
statements in accordance with Luxembourg legal and regulatory requirements relating to the preparation and
presentation of the financial statements, and for such internai control as the Board of Directors of the Company
determines is necessary to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error.
Responsibilities of the Réviseur d'entreprises agréé for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue a report of Réviseur d'entreprises agréé
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with the Law of 23 July 2016 and with ISAs as adopted for Luxembourg by the
CSSF will always detect a material misstatement when it exists. Misstatements can arise from fraud or errar and
are considered material if, individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with the Law of 23 July 2016 and with ISAs as adopted for Luxembourg
by the CSSF, we exercise professional judgment and maintain prafessional scepticism thraughout the
audit. We also:
• ldentify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and apprapriate
• to pravide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internai contrai.
• Obtain an understanding of internai contrai relevant to the audit in order to design audit procedures
that are apprapriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company's internai contrai.
• Evaluate the apprapriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the Board of Directors of the Company.
• Conclude on the apprapriateness of Board of Directors of the Company use of the going concem basis
of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related
to events or conditions that may cast significant doubt on the Company's ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
report of the Réviseur d'entreprises agréé to the related disclosures in the financial statements or, if
such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our report of the Réviseur d'entreprises agréé. However, future
events or conditions may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and events in
a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internai contrai that we
identify during our audit.
�
&Wseu, d'entreprises ag,éé
26 July 2018
The Commitment Approach is a methodology that aggregates the underlying market or notional values of financial derivative
instruments to determine the degree of global exposure of a Fund to financial derivative instruments.
Pursuant to the 2010 Law, the global exposure for a Fund under the Commitment Approach must not exceed 100% of that Fund’s
NAV. As at 31 March 2018 the global exposure of each Fund did not exceed 100% of its NAV.
Securities Lending
All securities lending transactions entered into by the Funds are subject to a written legal agreement between the Funds and the Securities
Lending Agent, BlackRock Advisors (UK) Limited, a related party to the Company, and separately between the Securities Lending
Agent and the approved borrowing counterparty. Collateral received in exchange for securities lent is transferred under a title transfer
arrangement and is delivered to and held in an account with a tri-party collateral manager in the name of the Depositary, State Street Bank
Luxembourg S.C.A. on behalf of the Funds. Collateral received is segregated from the assets belonging to the Funds’ Depositary or the
Securities Lending Agent.
The following table details the value of securities on loan as a proportion of the Funds’ total lendable assets and NAV. Total lendable assets
represents the aggregate value of assets forming part of the Funds’ securities lending programme.
Securities on loan
% of
Fund Currency lendable assets % of NAV
iShares Emerging Markets Equity Index Fund (LU) USD 13.62% 9.19%
iShares Emerging Markets Government Bond Index Fund (LU) USD 14.57% 13.08%
iShares Europe Equity Index Fund (LU) EUR 14.28% 13.36%
iShares Euro Aggregate Bond Index Fund (LU) EUR 7.55% 7.05%
iShares Euro Government Bond Index Fund (LU) EUR 12.22% 11.37%
iShares Global Government Bond Index Fund (LU) USD 3.43% 3.15%
iShares Japan Equity Index Fund (LU) USD 16.48% 15.52%
iShares North America Equity Index Fund (LU) USD 2.59% 2.45%
iShares Pacific ex Japan Equity Index Fund (LU) USD 20.49% 19.18%
iShares World Equity Index Fund (LU) USD 5.59% 5.20%
The total income earned from securities lending transactions is split between the relevant Fund and the Securities Lending Agent.
The Funds receives at least 62.5 % while Securities Lending Agent receives up to 37.5 % of such income with all operational costs
borne out of the Securities Lending Agent’s share.
Income earned during the year by the Funds from securities lending transactions is disclosed in the Funds’ Statement of Operations
and Changes in Net Assets under caption “Securities lending”.
The following tables detail the value of securities on loan (individually identified in the relevant Funds’ Portfolio of Investments)
and associated collateral received analysed by counterparty as at 31 March 2018.
Securities Lending
Counterparty’s
country of Amount Collateral
Counterparty establishment on loan received
Securities Lending
Counterparty’s
country of Amount Collateral
Counterparty establishment on loan received
iShares Emerging Markets Government Bond Index Fund (LU) (in USD)
Barclays Bank Plc United Kingdom 77,679,865 83,678,228
BNP Paribas SA France 54,721,060 57,032,657
Citigroup Global Markets Ltd United Kingdom 45,635,011 53,009,579
Credit Suisse Securities Ltd United Kingdom 26,111,160 31,579,881
JP Morgan Securities Plc United Kingdom 26,343,335 28,131,381
Morgan Stanley Group Inc United States 19,511,356 24,708,392
Nomura International Plc United Kingdom 64,352,311 68,746,503
UBS AG Switzerland 4,966,589 5,570,491
Total 319,320,687 352,457,112
iShares Europe Equity Index Fund (LU) (in EUR)
Barclays Capital Securities Ltd United Kingdom 2,770,288 4,170,334
BNP Paribas Arbitrage SNC France 5,872,452 6,718,994
Citigroup Global Markets Ltd United Kingdom 12,019,141 12,696,927
Credit Suisse International Switzerland 13,161,779 13,894,302
Goldman Sachs International United States 1,213,554 1,300,347
HSBC Bank Plc United Kingdom 1,343,828 1,424,786
Macquarie Bank Ltd Australia 98,820 111,740
Merrill Lynch International United States 2,613,918 2,906,673
Morgan Stanley Group Inc United States 643,779 709,957
Skandinaviska Enskilda Banken AB United Kingdom 173,269 227,189
Societe Generale SA France 8,621,148 9,436,499
The Bank of Nova Scotia Canada 1,596,740 1,737,298
UBS AG Switzerland 812,475 891,234
Total 50,941,191 56,226,280
iShares Euro Aggregate Bond Index Fund (LU) (in EUR)
Barclays Bank Plc United Kingdom 4,513,018 4,861,510
BNP Paribas Arbitrage SNC France 232,103 354,453
BNP Paribas SA France 2,038,477 2,124,588
Citigroup Global Markets Ltd United Kingdom 1,996,771 2,304,563
Goldman Sachs International United States 267,877 362,209
HSBC Bank Plc United Kingdom 27,409 125,483
JP Morgan Securities Plc United Kingdom 200,772 207,492
Morgan Stanley Group Inc United States 2,475,368 2,575,165
Nomura International Plc United Kingdom 289,162 308,907
Societe Generale SA France 24,936,540 27,444,912
The Bank of Nova Scotia Canada 6,036,199 6,596,461
UBS AG Switzerland 977,414 1,187,281
Total 43,991,110 48,453,024
iShares Euro Government Bond Index Fund (LU) (in EUR)
Barclays Bank Plc United Kingdom 3,048,495 3,283,897
BNP Paribas SA France 577,617 703,044
Nomura International Plc United Kingdom 1,319,281 1,424,009
Societe Generale SA France 39,089,198 43,028,553
The Bank of Nova Scotia Canada 4,235,896 4,629,058
UBS AG Switzerland 55,603 67,541
Total 48,326,090 53,136,102
Securities Lending
Counterparty’s
country of Amount Collateral
Counterparty establishment on loan received
All securities on loan have an open maturity tenor as they are recallable or terminable on a daily basis.
Collateral
The Funds engage in activities which may require collateral to be provided to a counterparty (“collateral posted”) or may hold
collateral received (“collateral received”) from a counterparty.
The following table provides an analysis by currency of the underlying cash and non-cash collateral received by way of title
transfer collateral arrangement by the Funds, in respect of securities lending transactions, as at 31 March 2018.
iShares Emerging Markets Equity Index Fund (LU) (in USD) iShares Euro Aggregate Bond Index Fund (LU) (in EUR)
Securities lending transactions Securities lending transactions
CAD - 358,162 CAD - 191,036
CHF - 69,495 CHF - 767,512
DKK - 3,295 DKK - 5,893
EUR - 14,483,179 EUR - 17,887,212
GBP - 12,437,149 GBP 97,389 14,085,718
JPY - 3,397,051 JPY - 3,425,502
MXN - 16,717 NOK - 1,359,413
NOK - 758,799 SEK - 1,624,808
SEK - 4,455,602 USD - 9,008,541
USD - 16,263,626 Total 97,389 48,355,635
Total - 52,243,075 iShares Euro Government Bond Index Fund (LU) (in EUR)
iShares Emerging Markets Government Bond Index Fund (LU) (in USD) Securities lending transactions
Securities lending transactions CAD - 88,472
AUD - 415,893 CHF - 1,054,535
CHF - 3,218,610 EUR - 12,929,078
DKK - 135,739 GBP - 20,230,329
EUR - 241,453,972 JPY - 5,368,046
GBP 5,631,176 28,999,358 NOK - 1,933,301
JPY - 10,752,430 SEK - 2,568,134
NOK - 4,510,111 USD - 8,964,207
USD - 57,339,823 Total - 53,136,102
Total 5,631,176 346,825,936 iShares Global Government Bond Index Fund (LU) (in USD)
iShares Europe Equity Index Fund (LU) (in EUR) Securities lending transactions
Securities lending transactions CAD - 365,854
CAD - 140,203 CHF - 179,268
CHF - 381,527 DKK - 1,069
DKK - 54,520 EUR - 2,319,548
EUR - 28,934,315 GBP - 3,209,167
GBP - 9,880,754 JPY - 875,823
JPY - 5,535,855 NOK - 149,185
MXN - 20,647 SEK - 197,072
NOK - 253,658 USD - 5,743,901
SEK - 295,545 Total - 13,040,887
USD - 10,729,256
Total - 56,226,280
iShares Japan Equity Index Fund (LU) (in USD) iShares Pacific ex Japan Equity Index Fund (LU) (in USD)
Securities lending transactions Securities lending transactions
CAD - 74,190 CAD - 857,753
CHF - 516,581 CHF - 785,759
DKK - 5,794 DKK - 22,675
EUR - 11,875,201 EUR - 21,830,202
GBP - 5,785,142 GBP - 10,624,068
JPY - 5,996,253 JPY - 13,459,264
NOK - 157,178 NOK - 1,817,230
SEK - 14,028 SEK - 696,902
USD - 10,749,950 USD - 25,237,529
Total - 35,174,317 Total - 75,331,382
iShares North America Equity Index Fund (LU) (in USD) iShares World Equity Index Fund (LU) (in USD)
Securities lending transactions Securities lending transactions
CAD - 343,911 CAD - 568,828
CHF - 3 CHF - 388,487
EUR - 4,743,054 DKK - 13,135
GBP - 3,597,535 EUR - 16,455,102
JPY - 2,072,152 GBP - 13,667,411
NOK - 553,607 JPY - 7,957,893
USD - 4,739,871 NOK - 1,096,694
Total - 16,050,133 SEK - 642,970
USD - 15,160,042
Total - 55,950,562
Non-cash collateral received by way of title transfer collateral arrangement in relation to securities lending transactions, cannot be
sold, re-invested or pledged.
The following table provides an analysis of the type, quality and maturity tenor of non-cash collateral received by the Funds by
way of title transfer collateral arrangement in respect of securities lending transactions, as at 31 March 2018.
Maturity Tenor
2–7 8 – 30 31 – 90 91 – 365 More than
Collateral type and quality days days days days 365 days Open Total
Maturity Tenor
2–7 8 – 30 31 – 90 91 – 365 More than
Collateral type and quality days days days days 365 days Open Total
Investment grade securities are those issued by an entity with a minimum investment grade credit rating from at least one globally
recognised credit rating agency; Standard & Poor’s, Moody’s or Fitch.
A recognised equity index contains at least 20 equities where no single equity represents more than 20 % of the total index and
no five equities combined represent more than 60 % of the total index.
The maturity tenor analysis for fixed income securities received as collateral is based on the respective contractual maturity date,
while for equity securities, ETFs and money market funds received as collateral are presented as open transactions as they are
not subject to a contractual maturity date.
Cash collateral received relating to securities lending is not subject to a contractual maturity date.
The following table provides an analysis of the amounts The following table lists the ten largest issuers by value of non-
of non-cash collateral received by the Funds in respect cash collateral received by the Funds by way of title transfer
of securities lending transactions and held by the Funds’ collateral arrangement across securities lending transactions
Depositary (or through its delegates) or through a securities as at 31 March 2018.
settlement system as at 31 March 2018.
% of the
Non-cash Issuers Value Fund’s NAV
collateral received
iShares Emerging Markets Equity Index Fund (LU)
Securities United States Treasury 5,483,795 1.05%
Depositary lending
United Kingdom Gilt 5,198,158 0.99%
iShares Emerging Markets Equity Index Fund (LU) Sweden Government Bond 4,422,204 0.85%
State Street Bank Luxembourg S.C.A. (or its delegates) 52,243,075 Republic of Germany 3,243,164 0.62%
iShares Emerging Markets Government Bond Index Fund (LU) Commerzbank AG 2,327,628 0.45%
State Street Bank Luxembourg S.C.A. (or its delegates) 115,159,185 MSCI Inc 2,327,576 0.45%
Euroclear SA/NV 231,666,751 Finland Government Bond 1,915,201 0.37%
Total 346,825,936 RELX Plc 1,884,442 0.36%
iShares Europe Equity Index Fund (LU) French Republic Government Bond OAT 1,025,841 0.20%
State Street Bank Luxembourg S.C.A. (or its delegates) 56,226,280 Intermediate Capital Group Plc 960,002 0.18%
iShares Euro Aggregate Bond Index Fund (LU) Other issuers 23,455,064 4.47%
State Street Bank Luxembourg S.C.A. (or its delegates) 37,761,624 Total 52,243,075 9.99%
Euroclear SA/NV 10,594,011 iShares Emerging Markets Government Bond Index Fund (LU)
Total 48,355,635 Republic of Germany 54,800,847 2.24%
iShares Euro Government Bond Index Fund (LU) Finland Government Bond 43,516,109 1.78%
State Street Bank Luxembourg S.C.A. (or its delegates) 47,613,738 French Republic Government Bond OAT 42,850,091 1.76%
Euroclear SA/NV 5,522,364 Republic of Austria Government Bond 41,083,294 1.68%
Total 53,136,102 United States Treasury 32,804,948 1.34%
iShares Global Government Bond Index Fund (LU) Kingdom of Belgium Government Bond 24,716,956 1.01%
State Street Bank Luxembourg S.C.A. (or its delegates) 12,603,969 United Kingdom Gilt 22,050,618 0.90%
Euroclear SA/NV 436,918 Netherlands Government Bond 21,811,980 0.89%
Total 13,040,887 Kreditanstalt fuer Wiederaufbau 6,538,860 0.27%
iShares Japan Equity Index Fund (LU) Norway Government Bond 4,510,111 0.18%
State Street Bank Luxembourg S.C.A. (or its delegates) 35,174,317 Other issuers 52,142,122 2.16%
iShares North America Equity Index Fund (LU) Total 346,825,936 14.21%
State Street Bank Luxembourg S.C.A. (or its delegates) 16,050,133 iShares Europe Equity Index Fund (LU)
iShares Pacific ex Japan Equity Index Fund (LU) United States Treasury 2,894,523 0.76%
State Street Bank Luxembourg S.C.A. (or its delegates) 75,331,382 French Republic Government Bond OAT 2,786,143 0.73%
iShares World Equity Index Fund (LU) Republic of Germany 2,772,639 0.73%
State Street Bank Luxembourg S.C.A. (or its delegates) 55,950,562 Netherlands Government Bond 2,415,043 0.63%
Republic of Austria Government Bond 2,356,429 0.62%
Vodafone Group Plc 1,841,523 0.48%
E.ON SE 1,766,171 0.46%
Fresenius Medical Care AG & Co KGaA 1,759,757 0.46%
Cie de Saint-Gobain 1,759,688 0.46%
British American Tobacco Plc 1,597,452 0.42%
Other issuers 34,276,912 8.99%
Total 56,226,280 14.74%
% of the % of the
Issuers Value Fund’s NAV Issuers Value Fund’s NAV
iShares Euro Aggregate Bond Index Fund (LU) iShares North America Equity Index Fund (LU)
French Republic Government Bond OAT 2,519,492 0.40% United Kingdom Gilt 719,161 0.12%
Republic of Austria Government Bond 2,487,088 0.40% French Republic Government Bond OAT 641,291 0.11%
Inmarsat Plc 2,384,527 0.38% Liberty Media Corp-Liberty SiriusXM 613,233 0.10%
Republic of Germany 2,383,857 0.38% Microsoft Corp 592,580 0.10%
Cigna Corp 2,314,638 0.37% Deutsche Lufthansa AG 591,447 0.10%
Finland Government Bond 1,976,982 0.32% Adobe Systems Inc 583,398 0.10%
Hiscox Ltd 1,828,345 0.29% Kubota Corp 575,064 0.10%
Inchcape Plc 1,715,965 0.28% Anheuser-Busch InBev SA/NV 574,983 0.10%
Burberry Group Plc 1,667,054 0.27% Akamai Technologies Inc 565,954 0.09%
Deutsche Bank AG 1,658,850 0.27% DNO ASA 553,607 0.09%
Other issuers 27,418,837 4.39% Other issuers 10,039,415 1.68%
Total 48,355,635 7.75% Total 16,050,133 2.69%
iShares Euro Government Bond Index Fund (LU) iShares Pacific ex Japan Equity Index Fund (LU)
Inmarsat Plc 3,768,961 0.89% British American Tobacco Plc 5,376,510 1.52%
Cigna Corp 3,658,495 0.86% TUI AG 3,024,773 0.85%
Hiscox Ltd 2,889,865 0.68% ORIX Corp 2,858,710 0.81%
Inchcape Plc 2,712,238 0.64% Vodafone Group Plc 2,327,871 0.66%
Burberry Group Plc 2,634,930 0.62% Abercrombie & Fitch Co 2,058,601 0.58%
Deutsche Bank AG 2,621,963 0.62% Skylark Co Ltd 2,027,152 0.57%
Atlas Copco AB ‘B’ 2,467,425 0.58% Kubota Corp 1,887,661 0.53%
WH Smith Plc 2,290,843 0.54% Anheuser-Busch InBev SA/NV 1,887,394 0.53%
British American Tobacco Plc 2,112,959 0.50% E.ON SE 1,877,518 0.53%
Gjensidige Forsikring ASA 1,933,301 0.45% United States Treasury 1,838,822 0.52%
Other issuers 26,045,122 6.12% Other issuers 50,166,370 14.19%
Total 53,136,102 12.50% Total 75,331,382 21.29%
iShares Global Government Bond Index Fund (LU) iShares World Equity Index Fund (LU)
United States Treasury 721,085 0.20% United States Treasury 2,147,202 0.23%
Inmarsat Plc 710,960 0.20% United Kingdom Gilt 1,930,450 0.21%
Man Group Plc 520,615 0.14% French Republic Government Bond OAT 1,840,469 0.20%
Fielmann AG 512,350 0.14% Republic of Germany 1,823,032 0.19%
TJX Cos Inc/The 421,740 0.12% Intermediate Capital Group Plc 1,208,546 0.13%
J Front Retailing Co Ltd 421,738 0.12% Electrocomponents Plc 1,208,544 0.13%
CRH Plc 421,718 0.12% Liberty Media Corp-Liberty SiriusXM 1,203,048 0.13%
Associated British Foods Plc 421,698 0.12% Kubota Corp 1,139,199 0.12%
Hartford Financial Services Group Inc/The 421,676 0.12% Anheuser-Busch InBev SA/NV 1,139,038 0.12%
Royal Dutch Shell Plc 421,649 0.12% DNO ASA 1,096,694 0.12%
Other issuers 8,045,658 2.19% Other issuers 41,214,340 4.37%
Total 13,040,887 3.59% Total 55,950,562 5.95%
iShares Japan Equity Index Fund (LU)
United States Treasury 2,028,231 1.10% No securities collateral received from a single issuer, in relation
Republic of Germany 2,021,807 1.09% to efficient portfolio management has exceeded 20% of any of
French Republic Government Bond OAT 1,932,957 1.04% the respective Funds’ NAV at the year end date.
United Kingdom Gilt 1,785,966 0.96%
Liberty Media Corp-Liberty SiriusXM 1,240,895 0.67% None of the Funds have been fully collateralised in securities
Landstar System Inc 1,240,891 0.67% issued or guaranteed by an EU member state at the year
Kenedix Inc 1,240,886 0.67% end date.
Ashmore Group Plc 1,138,669 0.62%
Chugai Pharmaceutical Co Ltd 1,019,140 0.55%
AECOM 932,591 0.50%
Other issuers 20,592,284 11.13%
Total 35,174,317 19.00%
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and BUILT FOR THESE TIMES are registered and unregistered trademarks of BlackRock, Inc. or its subsidiaries in the United States and elsewhere. All other trademarks are
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31 March 2018