BlackRock Global Funds - European Focus Fund A2 EUR LU

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1 Page 1 of 9 Morningstar Category Europe Large-Cap Blend Category Index MSCI Europe NR EUR Total Assets 1, Current Yield % Inception Date 14/10/05 Domicile/ Currency LUX/EUR Morningstar Rating QQQ Style Map Giant Large Mid Small K 15K 10K Performance 31/10/17 Growth of 10,000 Annualized Value EUR Ret % Fund 17, Category 14, Index 14, Full Manager Change Partial Manager Change Deep Value People Value Blend Growth High Growth Micro Nigel Bolton 03/08 Simon Hunter 11/16 Total Named Managers 2 Morningstar Pillars Process p. 2-3 Performance p. 4 People p. 5 Parent p. 6 Price p. 7 Negative & * & & * & & ( * ) ) 5K Morningstar Rating QQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQ QQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQ QQQQQQQQQQQQQQQQQQQQQQQQ QQQQQQQQ QQ Quartile Rank in Category Percentile Rank in Category % Total Return EUR /- Category /- Index Process Style Box Asset Allocation Stock Bond Cash Other Supersectors m Cyclical w Sensitive x Defensive Price TER/OGC Analyst View Muna Abu-Habsa, Director We continue to believe this is a standout offering for investors seeking European equity exposure. The conduct of Morningstar's analysts is governed by Morningstar's Code of Ethics, Securities Trading and Disclosure Policy, and Morningstar Manager Research Integrity Policy. For informaton regarding conflicts of interest, please click Morningstar evaluates mutual funds based on five key pillars, which its analysts believe lead to funds that are more likely to outperform over the long term on a risk-adjusted basis. Analyst Rating Spectrum Œ Á The for Funds is a forward-looking analysis of a fund. Morningstar has identified five key areas crucial to predicting the future success of a fund: People, Parent, Process, Performance, and Price. The pillars are used in determining the for a fund. s are assigned on a five-tier scale running from Gold to Negative. The top three ratings, Gold, Silver, and Bronze, all indicate that our analysts think highly of a fund; the difference between them corresponds to differences in the level of analyst conviction in a fund s ability to outperform its benchmark and peers through time, within the context of the level of risk taken over the long term (defined as a full market cycle or at least five years). Neutral represents funds in which our analysts don t have a strong positive or negative conviction over the long term (defined as a full market cycle or at least five years) and Negative represents funds that possess at least one flaw that our analysts believe is likely to significantly hamper future performance over the long term (defined as a full market cycle or at least five years). Past performance of a security may or may not be sustained in future and is no indication of future performance. For detailed information about the Morningstar Analyst Rating for Funds, please visit 24 Apr, 2017 Investors in BGF European Focus are well-served by their fund managers. Industry veteran Nigel Bolton took charge here in February Bolton was head of European equities at SWIP, and he joined Black- Rock with seven of his colleagues who had been working together for a number of years. Fortunately for investors here, the fund became much more stable under Bolton, as it had changed hands a few times prior to his arrival. The team supporting him is aptly experienced, close-knit, and, in our opinion, one of the strongest European equity teams in the industry. Bolton's co-portfolio manager on this offering, Simon Hunter, was appointed to this position in December 2016 to replace, Amy Dey, who remains on the team in a research role. We take comfort from the seven-plus year collaboration between Bolton and Hunter, and, with Bolton as lead portfolio manager, we do not expect this to affect the running of the fund. The managers have a flexible approach to investing and look for companies with attractive medium- to long-term earnings power, as well as restructuring and turnaround situations that the market has overlooked. However, they do this whilst taking into account top-down risks, which include the current macroeconomic and stock market environment. Performance during Bolton's tenure has been excellent, and the fund has outperformed the index and the Europe large-cap blend equity Morningstar Category average by a wide margin during his tenure. Although the concentration of positions in this 50-stock portfolio enables individual names to have bigger impacts on returns, it also leaves a thinner margin for error. This, coupled with the managers' willingness to go against the grain, means that investors should expect large gyrations in performance in the short term, for better and for worse. We like the team-oriented process, and this fund is a good representation of the European team's core ideas. What lessens the fund's appeal is its 1.75% annual management charge. Although we remain confident in Bolton's ability to overcome the cost hurdle, we think this could be lower. The fund otherwise continues to hold much long-term merit and earns a Morningstar Analst Rating of Silver.

2 Page 2 of 9 Process: Approach Morningstar Category Category Index Index Proxy Europe Large-Cap Blend MSCI Europe NR EUR Vanguard European Stock Index Investor The disciplined investment process has been consistently applied through several market cycles. Process Pillar 24 Apr, 2017 The managers have a flexible approach and will look for companies with attractive medium- to long-term earnings power, as well as restructuring and turnaround situations. However, they also take into account top-down risks, which include the current prevailing macroeconomic and stock market environment. The Style 31/10/17 Holdings-Based Style Map Deep Value Value Blend Growth High Growth Style Box Factors Giant Large Mid Small Micro Fund Centroid: Weighted average of equity holdings Zone: 75% of fund equity holdings Category Average Index Proxy Market Cap Fund 3-Yr Avg Category Proxy Giant/Large Mid Small/Micro Avg Market Cap Bil EUR Value Measures Fund 3-Yr Avg Category Proxy Price/Prospect. Earnings Price/Book Price/Sales Price/Cash Flow Dividend Yield Growth Measures Fund 3-Yr Avg Category Proxy Long-Term Earnings % Historical Earnings % Sales % Cash Flow % Book-Value % first step of the investment process is called "prioritised research" and involves team discussions on themes and sector trends. In order to narrow the investable universe, they also use metrics such as valuation relative to history and earnings revisions. The second step is a research pipeline that involves fundamental analysis on companies looking at market dynamics, revenue drivers, margins, financial statements, valuations, and risks to the central scenario. Analysts determine price targets and they rank stocks from 1 (buy) to 5 (sell) depending on their risk-adjusted upside potential. Asset Allocation 31/10/17 Current Allocation Year Average Net Assets % Fund 3-Yr Avg Category Proxy Fixed Income Cash Other Regional Exposure 31/10/17 Market Type % Fund 3-Yr Avg Category Proxy Developed Emerging Top 5 Countries % Fund 3-Yr Avg Category Proxy United Kingdom Germany France Sweden Spain Key Ratios 31/10/17 Fund 3-Yr Avg Category Proxy Net Margin % ROA % Debt/Total Capital % ROE % The third step is portfolio construction, which uses a sophisticated risk-management system to ensure the manager is not taking any unintentional risks. They have a strict sell discipline that derives from the competition of ideas, changes to the investment case, the achievement or reduction of price targets, and the active risk management of the portfolio. Sectors 31/10/17 Sector Delta Defensive Sensitive Cyclical Fund Index Larger sector concentrations versus the index move the investment to the corner of the triangle corresponding to that equity Super Sector. Sectors Fund 3-Yr Avg Category Proxy xdefensive sconsumer Defensive dhealthcare futilities wsensitive icommunication Serv oenergy pindustrials atechnology mcyclical rbasic Materials tconsumer Cyclical yfinancial Services ureal Estate Economic Moat 31/10/17 Fund 3-Yr Avg Category Proxy Wide Moat Narrow Moat No Moat Coverage Ratio

3 Page 3 of 9 Process: Portfolio Morningstar Category Category Index Index Proxy Europe Large-Cap Blend MSCI Europe NR EUR Vanguard European Stock Index Investor This mandate is all-cap in nature, although the managers have retained a clear largecap bias. Process Pillar 24 Apr, 2017 The portfolio has typically placed in the large-blend corner of the Morningstar Style Box, although the managers will dip down the market-cap ladder into mid-caps when opportunities arise. The pragmatic approach is reflected in the portfolio, which can change significantly year on year. For example, having moved defensive in Similarity to Index Proxy 31/07/ , the managers shifted their focus back to cyclical areas of the market early in They retained a procyclical stance at the beginning of 2010, but they also began to broaden the portfolio, particularly with a focus on quality growth companies. As the eurozone crisis escalated in summer 2011, they sought to balance the risk of the fund in August by reducing cyclicality. At the beginning of 2012, they added more risk again as economic data improved and held this through 2013 and into During the past year, the managers had an underweighting in banks as, despite trading at arguably attractive valuations, the lack of earnings visibility was of concern. However, signs of stability and a pickup in bond yields that they believed persistent, then led them to add to the weighting, which stood at 10% as of February 2017; that level is on par with the index. Within staples, amongst the key changes was selling Imperial Tobacco, which had been in the fund for nearly five years. The stock was believed to be mispriced at purchase and has rerated significantly since. Index Proxy Overlap Proxy Fund Circle size represents number of holdings. Number of Holdings Fund 46 Index Proxy 1,224 Fund Overlap With Index Proxy Holdings Overlap 0 Asset Overlap 0.0% Largest Common Holdings Fund % Proxy % Largest Distinct Holdings Fund % US Treasury Note 1.625% 4.31 US Treasury Note 1.25% 3.61 Japan(Govt Of) 0.8% 2.65 Germany (Federal Republic Of) 4.75% 2.39 Japan(Govt Of) 0.1% 2.35 Portfolio Holdings 31/07/17 Previous Portfolio Date Holdings Bond Holdings Other Holdings Assets in Top 10 Holdings Turnover Ratio (Reported) 30/06/ % 170% Top 10 Holdings Country Assets % Assets % Proxy % 31/07/17 30/06/17 31/07/17 T British American Tobacco PLC GBR /15 <1 Wide s Consumer Defensive Y Cie Financiere Richemont SA CHE /17 <1 Wide t Consumer Cyclical Y Shire PLC USA /16 <1 Narrow d Healthcare Y ING Groep NV NLD /16 <1 No y Financial Services 8.27 Y Danske Bank A/S DNK /16 <1 Narrow y Financial Services T Prudential PLC GBR /17 <1 No y Financial Services Y Fresenius Medical Care AG & Co. KGaA DEU /16 <1 Narrow d Healthcare Y KBC Group SA/NV BEL /16 <1 Narrow y Financial Services T Continental AG DEU /16 <1 Narrow t Consumer Cyclical Y Vinci SA FRA /16 <1 Narrow p Industrials Change since previous portfolio: T Increase Y Decrease R New First Bought Days Trading Economic Moat Sector 1-Yr Total New Holdings Largest Purchases % Assets Sector Alfa Laval AB 2.17 p KONE Oyj B 2.09 p Arkema SA 2.07 r Erste Group Bank AG y BlackRock Instl Euro Asts Liq Agcy Inc 1.04 Eliminated Holdings Largest Sales % Assets Sector DSV A/S 2.06 p BAE Systems PLC 2.03 p LEG Immobilien AG 1.69 u AstraZeneca PLC 1.57 d Largest Position Changes Current % Prior % T Intesa Sanpaolo R Alfa Laval AB R KONE Oyj B Y DSV A/S Y BAE Systems PLC

4 Page 4 of 9 Morningstar Category Category Index Performance Europe Large-Cap Blend MSCI Europe NR EUR Nigel Bolton has driven this fund to strong returns during his tenure. Performance Pillar 24 Apr, 2017 Since taking charge here, Nigel Bolton has shown that he has what it takes to navigate volatile market environments. The fund has outperformed its index by 200 basis points and peers by 289 basis points on average each year (to 28 Feb 2017). The fund's risk-adjusted returns have also been impressive was a challenging year for the fund, and a large portion of the underperformance was driven by UK-related names: The fund's exposure to the United Kingdom was 40% in May The muted exposure to stocks with earnings derived from emerging markets also hurt. The team had identified attractively valued mining stocks but weren't convinced by the drivers that would result in a change in fundamentals and were concerned by the weak balance sheets. The underweighting in banks was an additional drag. Over the longer run, Bolton has demonstrated his ability to manoeuvre the portfolio swiftly during different turning points in the market as performance in most calendar years between 2008 and the year to date has been amongst the best in its category. The fund s standard deviation (a statistical measure of risk) has exceeded its average peer's as his willingness to step away from the crowd and take significant bets relative to peers means risk can run high here. That said, Bolton has made this risk pay and the fund s Morningstar Risk-Adjusted Returns attest to that. Morningstar Rating and Risk 31/10/17 Period Morningstar Ret vs Cat Morningstar Risk vs Cat Morningstar Rating 3 Years Below Avg Below Avg QQ 5 Years Below Avg Avg QQ 10 Years High Above Avg QQQQ Overall Rating Risk Analysis 31/10/17 3-Year Return and Risk Analysis Total Return % QQQ Fund Category Index & * & & * & & ( * ) ) History 31/10/17 12-Month Rolling Return % Fund Full Manager Change Partial Manager Change Quartile Rank in Cat Percentile Rank in Cat % Total Return EUR /- Category /- Index Income Return Standard Deviation 3-Year Risk Measures Fund Category Index Standard Deviation Sharpe Ratio R-Squared Beta Alpha Maximum Drawdown Fund Category Index Max Drawdown (%) Peak Date 11/07 06/07 06/07 Valley Date 02/09 02/09 02/09 Max Drawdown (Months) Upside/Downside Fund Category Index Upside Capture Ratio Downside Capture Ratio Returns 31/10/17 Trailing Returns Total Investor Rank in Cat Cat Index 1 Year Years Years Years Tenure 03/ Inception 10/ Rolling-Returns Summary 65% Month Rolling Periods 109 Observations, 9 Years The shading and percentages correspond to how often the fund returns landed in each category quartile. Income and Capital Returns Return % Income Return Capital Return Year /17 Income Income % Rank in Cat Capital Capital % Rank in Cat /

5 Page 5 of 9 Morningstar Category Category Index People Europe Large-Cap Blend MSCI Europe NR EUR The fund boasts a highly experienced manager in Nigel Bolton. People Pillar 24 Apr, 2017 We think Nigel Bolton has done an excellent job of restoring stability at BlackRock's European equity team. Bolton took over this fund in February Its previous manager, Gavin Corr, left after only two years at the helm. Indeed, the European team had lost a few of its managers at that time, and instability was a growing Management Team concern. To address this issue, Bolton was brought over from SWIP along with a stable team of seven managers who had worked together for many years. He assigned analytical responsibilities to the managers, thereby ensuring they were aligned along sector lines, and in so doing established a unified research process. The team has since come closer together, and Bolton has created a culture of sharing information and expertise. BlackRock does not host a dedicated research pool to support managers; each team can choose to hire a small number of analysts with whom managers share the research responsibility, and about half of the managers in Bolton's team hold a combined manager/analyst role. Bolton's co-portfolio manager on this offering, Simon Hunter, was appointed to this position in December 2016 to replace Amy Dey, who remains on the team in a research role. We take comfort from the seven-plus years of collaboration between Bolton and Hunter, and, with Bolton as lead portfolio manager, we do not expect this to affect the running of the fund. Experience and Asset Load Total AUM Bil EUR in Funds Managed 20+ Number of Managers Longest Tenure Years Manager Retention Rate 5-Year % Average Manager Tenure 5.33 Years Tenure Years Advisor BlackRock Investment Management (UK) Ltd. Subadvisor BlackRock Investment Management, LLC BlackRock Investment Management (UK) Ltd. Blackrock Financial Management, Inc BlackRock Institutional Trust Company NA BlackRock International Limited BlackRock (Singapore) Limited Nigel Bolton 03/08 to Present Years on Managed Funds Years on Fund 27 9 Fund AUM Current Funds Managed 5, Largest Funds Managed Tenure Dates Role Fund Size Bil EUR Investment Tenure Index BGF European Fund 03/08 to Present 1 of BGF European Focus Fund 03/08 to Present 1 of BlackRock Eurofund 12/10 to Present 1 of < MMI Europa - BlackRock Akk 10/09 to Present Lead MMI Europa - BlackRock 10/09 to Present Lead Simon Hunter 11/16 to Present Years on Managed Funds Years on Fund 4 1 Fund AUM Current Funds Managed 1, Largest Funds Managed Tenure Dates Role Fund Size Investment Tenure Index Bil EUR BGF European Focus Fund 11/16 to Present 1 of

6 Page 6 of 9 Morningstar Category Category Index Parent Europe Large-Cap Blend MSCI Europe NR EUR BlackRock, though not perfect, has largely served fundholders well. Parent Pillar 09 Jun, 2017 At $5 trillion in assets under management, BlackRock is the largest asset manager in the world. The firm isn't perfect--after struggling with its active-equity capabilities for years, it's reorganizing that outfit for the second time, and its ishares franchise launches some trendy exchange-traded funds. But the firm has made Assets By Region, By Domicile Bil EUR Fund Family Details Europe (*) Breakdown great strides to encourage its portfolio managers to invest alongside fundholders, and strengthen its investment offerings. The firm's Parent rating was raised to Positive from Neutral. The firm has grown quickly, in large part thanks to the strength of ishares and its active fixed-income and multi-asset businesses, as well as a growing institutional business, which includes mostly index-based strategies. BlackRock's solid stewardship of capital stems in large part from its decision that to succeed as a publicly traded asset manager, it must act as a responsible, high-performing fiduciary. The firm uses its scale and technological capabilities to achieve this goal. BlackRock is constantly evolving and has focused on technology in recent years to further growth, including selling its proprietary riskmanagement system, Aladdin, to competitors and developing a pared-down version for advisors. A recent announcement to move $30 billion in active equity to quant-driven strategies demonstrates a willingness to rely more heavily on technology to run portfolios. Morningstar Rating Breakdown Americas Europe & Africa Asia & Australia 7.6 Rating Assets % Œ ˇ 4.0 Ø Not Rated 58.8 Rating Assets % QQQQQ 16.5 QQQQ 31.4 QQQ 14.2 QQ 6.2 Q 0.1 Not Rated 31.7 Asset Class Breakdown Europe (ex Money Mkt) Assets Bil EUR Asset Class Assets Bil EUR Assets % Fixed Income Allocation Convertibles Property Alternative Commodities Fund Family Details Europe Top Performing Funds Category Name Fund Size Return % 3-Year Rank in Cat 3-Year BlackRock Active Selection Fund - European Europe Large-Cap Blend Unconstrained Fund Institutional EUR Acc BlackRock Charishare Common Investment Acc UK Large-Cap Blend BlackRock Global Funds - Renminbi Bond Fund D3 USD RMB Bond Largest Funds Category Name Fund Size Return % 3-Year Rank in Cat 3-Year BlackRock Global Funds - Global Allocation USD Moderate Allocation 16, Fund A2 BlackRock Global Funds - Euro Short Duration EUR Diversified Bond - Short 11, Bond Fund A2 EUR Term ishares Developed World Index Fund (IE) Flexible Acc USD Global Large-Cap Blend 10, Recent Fund Launches Category Name Fund Size Return % Inception Inception Date BlackRock Global Funds - China Flexible China /10/17 Fund I2 USD BGF China A-Share Opportunities Fund I2 USD China - A Shares /10/17 Blackrock ACS 30:70 Global Tracker Fund Global - Currency Hedged 3, /07/17 X1 GBP Acc (*) All data is based on Branding name and refers to funds domiciled in Europe.

7 Page 7 of 9 Morningstar Category Category Index Price Europe Large-Cap Blend MSCI Europe NR EUR The fund's steep annual management charge pushes the ongoing charge well above the category median TER/OGC Expense History TER/OGC Price Pillar Negative 24 Apr, 2017 The fund 1.75% annual management charge pushes the ongoing charge well above the category median. For a firm the size of BlackRock, we would expect this to be lower TER/OGC Net Assets Bil EUR Net Flows Expense Breakdown Ongoing charge Ongoing charge 07/07/ Selected Components Max Management Fee 1.75 Performance Fee Fee Level Fee Level Above Avg Fee Level Breakpoints 0.13 Peer Group Europe Large-Cap Blend Retail Broad 3.49 High >2.29 Above Average Average Below Average Low <0.90 Fund 2.07 Peer Median 1.74 Share Class Information Share Class Identifier Morningstar Category TER/OGC Max Mgmt Fee Performance Fee Maximum Inital Charge BGF European Focus A2 Europe Large-Cap Blend BGF European Focus I2 LU Europe Large-Cap Blend BGF European Focus E2 EUR LU Europe Large-Cap Blend BGF European Focus D2 LU Europe Large-Cap Blend BGF European Focus A2 USD H LU Europe - Currency Hedged , BGF European Focus C2 LU Europe Large-Cap Blend Minimum Initial Inv Assets Bil EUR

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Page 9 of 9 *The Conflicts of Interest disclosure above also applies to relatives and associates of Manager Research Analysts in India #The Conflicts of Interest disclosure above also applies to associates of Manager Research Analysts in IndiaThe terms and conditions on which Morningstar Investment Adviser India Private Limited offers Investment Research to clients, varies from client to client, and are detailed in the respective client agreement. For recipients in Japan: The Report is distributed by Ibbotson Associates Japan, Inc., which is regulated by Financial Services Agency. Neither Ibbotson Associates Japan, Inc., nor its representatives, are acting or will be deemed to be acting as an investment advisor to any recipients of this information. For recipients in Singapore: This Report is distributed by Morningstar Investment Adviser Singapore Pte Limited, which is licensed by the Monetary Authority of Singapore to provide financial advisory services in Singapore. Investors should consult a financial adviser regarding the suitability of any investment product, taking into account their specific investment objectives, financial situation or particular needs, before making any investment decisions. Negative Represents funds that possess at least one flaw that our analysts believe is likely to significantly hamper future performance, such as high fees or an unstable management team. Because of these faults, we believe these funds are inferior to most competitors and will likely underperform their relevant performance benchmark and/or peer group, within the context of the level of risk taken, over a full market cycle. Morningstar may also use two other designations in place of a rating: Under Review This designation means that a change that occurred with the fund or at the fund company requires further review to determine the impact on the rating. Not Ratable This designation is used only where we are providing a report on a new strategy or on a strategy where there are no relevant comparators, but where investors require information as to suitability. For more information about our Analyst Rating methodology please go to Morningstar Star Rating The Morningstar Star Rating is a proprietary data point that is quantitatively driven. Funds are rated from one to five stars based on how well the fund performed (after adjusting for risk and accounting for sales charges) in comparison to similar funds. Within each Morningstar Category, the top 10% of funds receive five-stars and the bottom 10% receives one-star. Funds are rated for up to three time periods three-, five-, and ten-years and these ratings are combined to produce an overall star rating, which is noted within the Report. Funds with less than three years of history are not rated. Morningstar Star Ratings are based entirely on a mathematical evaluation of past performance. Morningstar Star Ratings are in no way to be considered a buy or sell signal nor should be viewed as a statement of fact. -Related Data Points The Report lists the fund s top ten holdings as of the dated noted. For each underlying holding, a series of data points is provided including, where applicable, that security s Economic Moat as of the date noted. Economic Moat The concept of an economic moat plays a vital role in our equity analyst s qualitative assessment of a firm s long-term investment potential, but also in the actual calculation of its fair value estimate. An economic moat is a structural feature that allows a firm to sustain excess profits over a long period of time. We define economic profits as returns on invested capital (or ROIC) over and above our estimate of a firm s cost of capital, or weighted average cost of capital (or WACC). Without a moat, profits are more susceptible to competition. We have identified five sources of economic moats: intangible assets, switching costs, network effect, cost advantage, and efficient scale. Companies with a narrow moat are those we believe are more likely than not to achieve normalized excess returns for at least the next 10 years. Wide-moat companies are those in which we have very high confidence that excess returns will remain for 10 years, with excess returns more likely than not to remain for at least 20 years. The longer a firm generates economic profits, the higher its intrinsic value. We believe low-quality, no-moat companies will see their normalized returns gravitate toward the firm s cost of capital more quickly than companies with moats. For more information about methodology in analysing stocks, please go to For Recipients in Australia: This Report has been issued and distributed in Australia by Morningstar Australasia Pty Ltd (ABN: ; ASFL: ). Morningstar Australasia Pty Ltd is the provider of the general advice ( the Service ) and takes responsibility for the production of this report. The Service is provided through the research of investment products. To the extent the Report contains general advice it has been prepared without reference to an investor s objectives, financial situation or needs. Investors should consider the advice in light of these matters and, if applicable, the relevant Product Disclosure Statement before making any decision to invest. Refer to our Financial Services Guide (FSG) for more information at For Recipients in Hong Kong: The Report is distributed by Morningstar Investment Management Asia Limited, which is regulated by the Hong Kong Securities and Futures Commission to provide services to professional investors only. 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