BlackRock Global Funds - World Mining Fund D2 LU

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1 Page 1 of 9 Morningstar Category Sector Equity Natural Category Index S&P Global Natural TR USD Total Assets 6, Current Yield % Inception Date 19/05/06 Domicile/ Currency LUX/USD Morningstar Rating QQ Equity Style Map Giant Large Mid Small K 10K Performance 31/01/18 Growth of 10,000 Annualized Value USD Ret % Fund 5, Category 7, Index 10, Full Manager Change Partial Manager Change Deep Value People Value Blend Growth High Growth Micro Evy Hambro 03/97 Olivia Markham 05/15 Total Named Managers 2 Morningstar Pillars Process p. 2-3 Performance p. 4 People p. 5 Parent p. 6 Price p. 7 Neutral Negative ) & * ( * ) ) ) & & * 2K Morningstar Rating QQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQ QQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQ QQQQQQQQQQQQQQQQQQQQQQQQ QQQQQQQQ QQ Quartile Rank in Category Percentile Rank in Category % Total Return USD /- Category /- Index Process Equity Style Box Asset Allocation Stock Bond Cash Other Equity Supersectors m Cyclical w Sensitive x Defensive Price TER/OGC Analyst View Fatima Khizou, Analyst This fund remains a worthy option for investors seeking exposure to mining-related equities. 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 21 Jun, 2017 Despite its weak near-term performance, our conviction in BGF World Mining remains intact. Manager Evy Hambro has been at the helm of this fund since its inception in March He is a seasoned mining investor and provides considerable stability to the team and investors. He has helped build the natural-resources team at BlackRock into a well-resourced unit with significant expertise across the entire commodity spectrum. In running this strategy, he is supported by comanager Olivia Markham, appointed to the role in April She has worked on the natural-resources team since 2011, when she initially joined as a gold and mining analyst, and provides support in constructing the portfolio. The managers aim to deliver steady outperformance through a risk-aware approach. This is achieved through a combination of the team's detailed commodity and company analysis. The top-down approach aims to forecast the price trend for the underlying commodities, while the equity analysis focuses on lower-cost, higherquality producers and incorporates manager meetings and mine visits. The team believes good management is key to a company's success. Since its inception in 1997 to the end of May 2017, the fund delivered solid absolute returns that were marginally ahead of its comparative Euromoney Global Mining benchmark. The fund's track record has been somewhat tarnished by the underperformance in recent years due to a number of factors, including a lower exposure to gold equities, a forced underweighting to megacap stocks relative to the index, and the managers' bullish stance in 2012 and again in The team's quality bias has also held back returns in periods when highly leveraged producers rallied strongly, as was the case in 2016, but this typically plays into their favour in down periods. We continue to think this is a solid offering, underpinned by a rigorous, disciplined approach and an experienced management team with significant expertise across the commodity spectrum. It therefore retains its Morningstar Analyst Rating of Silver.

2 Page 2 of 9 Process: Approach Morningstar Category Category Index Index Proxy Sector Equity Natural S&P Global Natural SPDR S&P Global Natural ETF A rigorous approach that combines the assessment of companies and commodities. Process Pillar 21 Jun, 2017 The process incorporates the assessment of commodity prices and companies. The team seeks to identify the drivers of each commodity price to help forecast a directional trend that supports its company-level analysis. This covers supply and demand analysis, with the latter increasingly influenced by investor demand. Equity Style 31/12/17 Holdings-Based Style Map Deep Value Value Blend Growth High Growth Equity 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 USD 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 % Such analysis frames bottom-up company research, which is critical to the process; the team members see more than 1,000 companies annually and believe good management is key to a company's success. They focus on lower-cost, higher-quality producers where they believe equity valuations underestimate the longer-term earnings prospects for a business. A top-down overlay incorporates factors such as political risk into the analysis. The fund is constructed in a benchmarkaware manner with the aim of generating steady Asset Allocation 31/12/17 Current Allocation 3-Year Average Net Assets % Fund 3-Yr Avg Category Proxy Equity Fixed Income Cash Other Regional Exposure 31/12/17 Market Type Equity % Fund 3-Yr Avg Category Proxy Developed Emerging Top 5 Countries Equity % Fund 3-Yr Avg Category Proxy United Kingdom Canada Australia Brazil United States Key Ratios 31/12/17 Fund 3-Yr Avg Category Proxy Net Margin % ROA % Debt/Total Capital % ROE % outperformance. It comprises three segments: large holdings of 5% to 10%, where liquidity is good and conviction is high; medium positions of 2% to 5%, typically a single metal producer or activity in one country only; and positions below 2%, which are usually stocks with poorer liquidity. The 10 largest holdings will typically make up more than 50% of assets, and portfolio turnover will usually be low. The fund will typically have stocks; however, the number of holdings can look artificially high because of the different lines of stock available in a company. Sectors 31/12/17 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. Equity 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 31/12/17 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 Sector Equity Natural S&P Global Natural SPDR S&P Global Natural ETF Deleveraging is a key theme within the portfolio. Process Pillar 21 Jun, 2017 The fund has typically exhibited an underweighting to large caps while being overweight mid-caps relative to the Euromoney Global Mining benchmark. Turnover has also tended to be relatively low helped by the long-term emphasis on low-cost miners with the ability to grow production. That said, they will at times hold Similarity to Index Proxy 31/10/17 more-tactical positions designed to take advantage of a company's commodity-price sensitivity. Gold had an exceptional 2016, particularly in the first half, and the team gradually increased the fund's allocation to the precious metal first through some of the larger companies that typically display greater sensitivity to the gold price, particularly Barrick Gold, and then took advantage of the correction in the second half to add to their existing names with a strong growth profile. Diversified producers continue to form a big part of the portfolio, and the biggest change here in 2016 was the addition of Vale following a visit with the management in Brazil. This position was further increased in the first quarter of 2017 based on relative valuations, attractive cash flows, and the company's ongoing strategy for deleveraging its balance sheet. Deleveraging was a key theme within the overall portfolio, helped by soaring commodity prices and mining companies' willingness to keep cutting costs. Furthermore, copper exposure remained high but was mainly through two names: First Quantum and Cerro Verde--a successful and quality asset. Index Proxy Overlap Proxy Fund Circle size represents number of holdings. Number of Equity Holdings Fund 55 Index Proxy 90 Fund Overlap With Index Proxy Holdings Overlap 7 Asset Overlap 9.4% Largest Common Holdings Fund % Proxy % Glencore PLC Vale SA ADR South32 Ltd Newmont Mining Corp Newcrest Mining Ltd Largest Distinct Holdings Fund % Rio Tinto PLC 9.77 BHP Billiton PLC 9.44 First Quantum Minerals Ltd 4.53 Teck Ltd Class B 3.95 Randgold Ltd ADR 3.67 Portfolio Holdings 31/10/17 Previous Portfolio Date Equity Holdings Bond Holdings Other Holdings Assets in Top 10 Holdings Turnover Ratio (Reported) 30/09/ % Top 10 Equity Holdings Country Assets % Assets % Proxy % 31/10/17 30/09/17 31/10/17 Y Glencore PLC GBR /11 3 No r Basic Materials Rio Tinto PLC GBR /03 3 No r Basic Materials BHP Billiton PLC GBR /03 3 No r Basic Materials Vale SA ADR BRA /17 2 No r Basic Materials First Quantum Minerals Ltd CAN /03 8 No r Basic Materials South32 Ltd AUS /16 5 No r Basic Materials Newmont Mining Corp USA /15 2 No r Basic Materials Teck Ltd Class B CAN /03 5 No r Basic Materials Randgold Ltd ADR GBR /09 5 r Basic Materials Lundin Mining Corp CAN /12 10 r Basic Materials 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 Pretium Inc 0.60 r Ero Copper Corp 0.35 r Bacanora Minerals Ltd 0.19 r Eliminated Holdings Largest Sales % Assets Sector Pretium Inc 0.40 r Bacanora Minerals Ltd 0.18 r Largest Position Changes Current % Prior % Y Glencore PLC Y BlackRock ICS USD Liquidity Agency Inc R Ero Copper Corp Y Pretium Inc Y Bacanora Minerals Ltd

4 Page 4 of 9 Morningstar Category Category Index Performance Sector Equity Natural S&P Global Natural The long-term track record is marginally ahead of the index. Performance Pillar Neutral 21 Jun, 2017 Performance is analysed primarily relative to the Euromoney Global Mining Index, as the fund has a narrower mandate than most in the Sector Equity Natural Morningstar Category. The fund registered solid absolute returns from its March 1997 inception to May 31, 2017, in excess of both yardsticks. However, we note that recent years have been challenging, and the fund's weak near-term results have dented the overall track record. In , the fund's underexposure to gold combined with the forced underweighting to the largest constituents of the index, because of the 10% UCITS limit, hindered performance. Moreover, the fund was also held back by its overweight exposure to copper and iron ore equities. In 2014, the managers' positive outlook for the overall sector, compounded by an underestimation of the extent of the collapse in commodity prices, notably iron ore, weighed on the fund's returns. In the subsequent year, the fund performed in line with its index, helped by the team's defensive stance and the fund's quality bias, particularly in the last part of the year was an excellent year for commodities and while the fund registered over 50% gains, it lagged its index by 9.2%. The fund's lower exposure to leveraged mining companies, particularly in the first half, hurt performance. In 2017 through May, returns were also behind the index, with the overweight positions in copper and nickel producers being among the largest detractors. Morningstar Rating and Risk 31/01/18 Period Morningstar Ret vs Cat Morningstar Risk vs Cat Morningstar Rating 3 Years Above Avg Above Avg QQ 5 Years Below Avg Above Avg QQ 10 Years Below Avg Above Avg QQ Overall Rating Risk Analysis 31/01/18 3-Year Return and Risk Analysis Total Return % QQ Fund Category Index Standard Deviation 3-Year Risk Measures Fund Category Index Standard Deviation Sharpe Ratio R-Squared Beta 1.51 Alpha Maximum Drawdown Fund Category Index Max Drawdown (%) Peak Date 06/08 06/08 06/08 Valley Date 01/16 01/16 02/09 Max Drawdown (Months) Upside/Downside Fund Category Index Upside Capture Ratio Downside Capture Ratio ) & * ( * ) ) ) & & * History 31/01/18 12-Month Rolling Return % Fund Full Manager Change Partial Manager Change Quartile Rank in Cat Percentile Rank in Cat % Total Return USD /- Category /- Index Income Return Returns 31/01/18 Trailing Returns Total Investor Rank in Cat Cat Index 1 Year Years Years Years Tenure 03/ Inception 05/ Rolling-Returns Summary 18% Month Rolling Periods 105 Observations, 8 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 /18 Income Income % Rank in Cat Capital Capital % Rank in Cat /

5 Page 5 of 9 Morningstar Category Category Index People Sector Equity Natural S&P Global Natural A seasoned mining investor backed by a well-resourced team with significant expertise. People Pillar Management Team 21 Jun, 2017 Evy Hambro joined Mercury Asset Management (now BlackRock) in 1993 and has been in charge of BGF World Mining since its launch in He brings an outstanding pedigree in his field, and his entire career has been focused on the analysis of mining stocks and precious metals. He has helped build the natural-resources team at BlackRock into a well-resourced team, comprising over 10 investment professionals as at May The team was led by Graham Birch until April 2009, when he embarked upon a nine-month sabbatical and subsequently retired. Hambro has consequently taken on the role of CIO of the team, which has retained significant experience and expertise overall. That said, the team suffered a meaningful blow in the first half of 2015 when talented comanager Catherine Raw left the firm. She was replaced by Olivia Markham, who joined BlackRock in 2011 as a gold and mining analyst. Previously she worked at UBS, where she led the European mining research team. Within the firm, she also comanages BlackRock Commodities Income Trust. The group also hired experienced analyst Cailey Barker, who officially joined the team in September He has a strong technical background, which the team felt it lost with the previous comanager's departure. We continue to believe this is a high-quality team with strong caliber individuals led by a talented portfolio manager. Experience and Asset Load Total AUM Bil USD in Funds Managed 20+ Number of Managers Longest Tenure Years Manager Retention Rate 5-Year % Average Manager Tenure Years Advisor Subadvisor BlackRock Investment Management (UK) Ltd Tenure Years Evy Hambro 03/97 to Present Years on Managed Funds Years on Fund Fund AUM Current Funds Managed 14, Largest Funds Managed Tenure Dates Role Fund Size Bil USD Investment Tenure Index BGF World Mining Fund 03/97 to Present 1 of BGF World Gold Fund 01/02 to Present 1 of BlackRock Gold & General Fund 04/09 to Present 1 of BlackRock World Mining Trust plc 09/00 to Present 1 of ZIL Blackrock World Gold 01/02 to Present Lead Olivia Markham 05/15 to Present Years on Managed Funds Years on Fund 4 2 Fund AUM Current Funds Managed 7, Largest Funds Managed Tenure Dates Role Fund Size Bil USD Investment Tenure Index BGF World Mining Fund 05/15 to Present 1 of BlackRock World Mining Trust plc 04/15 to Present 1 of BlackRock Commodities Income Inv Trust 01/14 to Present 1 of

6 Page 6 of 9 Morningstar Category Category Index Parent Sector Equity Natural S&P Global Natural 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 USD 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 8.0 Rating Assets % Œ ˇ 4.0 Ø Not Rated 59.2 Rating Assets % QQQQQ 14.8 QQQQ 28.1 QQQ 17.9 QQ 6.1 Q 0.1 Not Rated 33.0 Asset Class Breakdown Europe (ex Money Mkt) Assets Bil USD Asset Class Assets Bil USD Assets % Equity 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 Equity Unconstrained Equity Fund Institutional EUR Acc BlackRock Active Selection Fund Local Global Emerging Markets Bond Emerging Markets Bond Fund USD Flexible Local Currency BlackRock Global Funds - China 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 20, Fund A2 BlackRock Global Funds - Euro Short Duration EUR Diversified Bond - Short 15, Bond Fund A2 EUR Term ishares Developed World Index Fund (IE) Flexible Acc USD Global Large-Cap Blend Equity 13, Recent Fund Launches Category Name Fund Size Return % Inception Inception Date BlackRock Strategic Funds - USD High Yield Fixed Term Bond /01/18 Fixed Maturity Bond Fund D2 USD ishares Global Aggregate 1-5 Year Bond Index Global Bond /12/17 Fund D Dist USD BlackRock Emerging Markets Alpha Tilts Fund Class Institutional Accumulating USD Global Emerging Markets Equity /12/17 (*) All data is based on Branding name and refers to funds domiciled in Europe.

7 Page 7 of 9 Morningstar Category Category Index Price Sector Equity Natural S&P Global Natural The fund's ongoing charge is above the category median TER/OGC Expense History TER/OGC Price Pillar Negative 21 Jun, 2017 The fund's ongoing charge for the clean share class is above the median for a peer group of similarly priced funds. In addition, the fund s retail share class is in line with the Sector Equity Natural category median TER/OGC Net Assets Bil USD Net Flows Bil USD Expense Breakdown Ongoing charge Ongoing charge 20/04/ Fee Level Fee Level Peer Group Selected Components Max Management Fee 1.00 Performance Fee Fee Level Breakpoints High >0.00 Above Average Average Below Average Low <0.00 Fund 1.31 Peer Median Share Class Information Share Class Identifier Morningstar Category TER/OGC Max Mgmt Fee Performance Fee Maximum Inital Charge BGF World Mining A2 Sector Equity Natural , BGF World Mining E2 Sector Equity Natural , BGF World Mining C2 Sector Equity Natural , BGF World Mining X2 Sector Equity Natural ,000, BGF World Mining A4RF GBP Sector Equity Natural BGF World Mining D2 Sector Equity Natural , BGF World Mining A2 EUR H Sector Equity Other BGF World Mining C2 EUR H Sector Equity Other BGF World Mining D2 EUR H Sector Equity Other BGF World Mining E2 EUR H Sector Equity Other BGF World Mining A2 SGD H Sector Equity Other BGF World Mining I2 Sector Equity Natural ,000, BGF World Mining I2 EUR H Sector Equity Other BGF World Mining J2 USD Sector Equity Natural ,000, BGF World Mining A4 EUR Sector Equity Natural BGF World Mining A2 PLN H Sector Equity Other BGF World Mining X2 EUR H Sector Equity Other BGF World Mining A2 CHF H Sector Equity Other BGF World Mining A2 HKD H Sector Equity Other BGF World Mining D4RF GBP Sector Equity Natural BGF World Mining D2 CHF H Sector Equity Other Minimum Initial Inv Assets Bil USD

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With those fundamental strengths, we expect these funds will outperform their relevant performance benchmark and/or peer group within the context of the level of risk taken over the long term (defined as a full market cycle or at least five years). Bronze Represents funds that have advantages that clearly outweigh any disadvantages across the pillars, giving analyst the conviction to award them a positive rating. We expect these funds to beat their relevant performance benchmark and/ or peer group within the context of the level of risk taken over 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. In our judgment, these funds are not likely to deliver standout returns, but they aren t likely to seriously underperform their relevant performance benchmark and/or peer group either. Limited. 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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. Equity-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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