Unaudited Semi-Annual Report ishares ETF II (CH) Umbrella Fund under Swiss Law of the Other Funds for Traditional Investments Type

Transcription

1 Unaudited Semi-Annual Report ishares ETF II (CH) Umbrella Fund under Swiss Law of the Other Funds for Traditional Investments Type 30 November 2016

2 i S hares ETF II (CH) Contents Organisation and Management 3 Fund details 5 Report by sub-fund ishares Gold (CH) 6 ishares Gold CHF Hedged (CH) 10 ishares Gold EUR Hedged (CH) 15 Notes to the semi-annual report 20 This semi-annual report and unaudited financial statements (the Report and Accounts ) may be translated into other languages. Any such translations shall only contain the same information and have the same meaning as the German language Report and Accounts. To the extent that if there is any inconsistency between the German language semi-annual report and the semi-annual report in another language, the German language semi-annual report will prevail, except to the extent (and only to the extent) that it is required by law of any jurisdiction where the shares are sold, that in an action based upon disclosure in a semi-annual report in a language other than German, the language of the semi-annual report on which such action is based shall prevail. Any disputes as to the terms of the semi-annual report, regardless of the language of the semi-annual report, shall be governed by and construed in accordance with the laws of Switzerland. [2] ishares ETF II (CH) S emi-annual R eport

3 ishares ETF II (CH) Organisation and Management Fund Management Company BlackRock Asset Management Schweiz AG Bahnhofstrasse 39 CH-8001 Zurich Board of Directors David Blumer, Chairman Barry O Dwyer, Vice-Chairman Christian Staub Susanne Haury von Siebenthal Peter Athanas Executive Committee* Christian Staub, CEO Michael Burch, COO** Nathalie von Niederhäusern Christian Gast André Bantli Frank Rosenschon Holger Schmidt Barbara Dailey Timea Gregorcsok Jasmin Djalali Paying Agent and Representative (Liechtenstein) LGT Bank AG Herrengasse 12 FL-9490 Vaduz Delivery Agent Credit Suisse AG Paradeplatz 8 CH-8001 Zurich Auditor Deloitte AG General-Guisan-Quai 38 P.O. Box 2232 CH-8022 Zurich Fund Administrator State Street Bank International GmbH, Munich, Zurich Branch Beethovenstrasse 19 CH-8027 Zurich * With effect from 30 June 2016, Christian Hinze resigned as a member of the Executive Committee. ** With effect from 25 November 2016, Michael Burch was appointed as a member of the Executive Committee. Custodian Bank State Street Bank International GmbH, Munich, Zurich Branch Beethovenstrasse 19 CH-8027 Zurich Sub-Custodian Bank Credit Suisse AG Paradeplatz 8 CH-8001 Zurich Paying Agent (Switzerland) State Street Bank International GmbH, Munich, Zurich Branch Beethovenstrasse 19 CH-8027 Zurich ishares ETF II (CH) S emi-annual R eport [3]

4 i S hares ETF II (CH) Organisation and Management (continued) General ishares ETF II (CH) is an umbrella fund under Swiss law of the Other funds for traditional investments type which was established under the Swiss Collective Investment Schemes Act (CISA) of June 23, 2006 and is divided into the following sub-funds: a) ishares Gold (CH) b) ishares Gold CHF Hedged (CH) c) ishares Gold EUR Hedged (CH) Delegation and Sub-delegation of Investment Decisions Investment decisions in respect of the sub-funds have been delegated to BlackRock Advisors (UK) Limited, London, which has sub-delegated these investment decisions to BlackRock Asset Management Deutschland AG, Munich. The precise duties involved are presented in an investment management agreement between the Fund Management Company and BlackRock Advisors (UK) Limited, London, and in a sub-investment management agreement between BlackRock Advisors (UK) Limited, London, and BlackRock Asset Management Deutschland AG, Munich. Delegation of Other Specific Tasks The Fund Management Company has delegated parts of the fund administration to State Street Bank International GmbH, Munich, Zurich Branch. A Service Agreement between the Fund Management Company and State Street Bank International GmbH, Munich, Zurich Branch details the terms of the delegated tasks as outlined in the prospectus. [4] ishares ETF II (CH) S emi-annual R eport

5 ishares ETF II (CH) Fund details Total Expense Ratio (TER) Sub-fund Unit Class Currency Flat fee charged to the sub-fund Total Expense Ratio (TER) ishares Gold (CH) A USD ishares Gold CHF Hedged (CH) A CHF ishares Gold EUR Hedged (CH) A EUR TER (Total Expense Ratio) describes the sum of all periodic costs and commissions that are charged to the sub-fund s assets. It is expressed retroactively as a percentage of average sub-fund assets and has been calculated in accordance with the SFAMA guidelines on the calculation and disclosure of the Total Expense Ratio (TER) of collective investment schemes. Any reimbursements/commissions for client unit holdings from target funds have been credited to the sub-fund and thus reduce the TER. Sub-fund performance with benchmark Sub-fund Benchmark Unit Class Currency Inception Date 1 June November June November January November 2016 ishares Gold (CH) A USD 05 October 2009 (2.95) (11.01) (11.69) (0.52) (27.76) London Gold Fixing PM (AM) (2.81) (10.87) (11.42) (0.19) (27.51) ishares Gold CHF Hedged (CH) A CHF 05 October 2009 (4.06) (12.13) 8.20 (14.46) (1.38) (28.13) London Gold Fixing PM (AM) (Hedged into CHF) (3.40) (11.54) 9.44 (12.86) (0.52) (28.02) ishares Gold EUR Hedged (CH) A EUR 05 October 2009 (3.78) (11.72) 8.79 (12.96) (1.12) (28.05) London Gold Fixing PM (AM) (Hedged into EUR) (3.17) (11.36) 9.80 (12.16) (0.42) (28.00) Sub-fund performance is shown net of fees and expenses (TER). Sub-fund performance is based on officially published net asset values which in turn are based on stock exchange closing prices at the end of the month in question. Historical performance is not an indicator of current or future performance. The performance data given does not take into account commissions and costs incurred in the purchase or redemption of fund units. Performance has been calculated in accordance with the SFAMA guidelines on the calculation and publication of performance data of collective investment schemes Tracking Error Realised tracking error is the annualised standard deviation of the difference in monthly returns between a sub-fund and its benchmark index. Tracking error shows the consistency of the returns relative to the benchmark index over a defined period of time. Cash management, efficient portfolio management techniques, transaction costs from rebalancing and currency hedging can have an impact on tracking error as well as the return differential between a sub-fund and its benchmark index. Importantly, these impacts can be either positive or negative depending on the underlying circumstances. The following table shows the actual realised tracking error of the sub-funds as at 30 November The realised tracking error is annualised and calculated using data from the preceding 36 month observation period. Sub-fund Maximum Minimum Average 30 November 2016 ishares Gold (CH) ishares Gold CHF Hedged (CH) ishares Gold EUR Hedged (CH) ishares ETF II (CH) S emi-annual R eport [5]

6 ishares ETF II (CH) ishares Gold (CH) Key figures 30 November May May 2015 Total net fund assets in millions USD Number of units outstanding 2,812, ,604, ,180, Net asset value per unit USD [6] ishares ETF II (CH) Semi-Annual Report

7 ishares Gold (CH) ishares ETF II (CH) Statement of net assets As at 30 November November May 2016 USD USD Due from banks, including fiduciary deposits with third-party banks, broken down into: Sight deposits 7, , Other investments Gold bars 323,342, ,551, Gold held at Sub-Custodian 347, , Other assets 5.68 Total fund assets, less 323,696, ,866, Other liabilities 83, , Net fund assets 323,613, ,784, Number of units outstanding 2,812, ,604, Net asset value per unit Changes in the fund s net assets Fund s net assets at the beginning of the reporting period 308,784, ,772, Issue of units 46,567, ,121, Redemption of units (20,814,751.06) (70,461,406.50) Total net income (10,923,859.80) 3,352, Fund s net assets at the end of the reporting period 323,613, ,784, Changes in number of units outstanding Number at the beginning of the reporting period 2,604, ,180, Number of units issued 372, , Number of units redeemed (164, ) (612, ) Number at the end of the reporting period 2,812, ,604, ishares ETF II (CH) Semi-Annual Report [7]

8 ishares ETF II (CH) ishares Gold (CH) Profit and loss account For the period ended 30 November June November 2016 USD 1 June May 2016 Income from bank assets 5.13 Current net income paid in on issued units (17,038.40) (7,252.80) Total income less: (17,033.27) (7,252.80) USD Interest paid Negative interest Remunerations to the following in accordance with the fund regulations: The Fund Management Company 532, , Current net income paid out on redeemed units (20,811.20) (103,219.60) Net income (529,024.74) (893,136.11) Realised capital gains and losses (84,452.81) (8,004,829.56) Realised net income (613,477.55) (8,897,965.67) Unrealised capital gains and losses (10,310,382.25) 12,250, Total net income (10,923,859.80) 3,352, [8] ishares ETF II (CH) Semi-Annual Report

9 ishares Gold (CH) ishares ETF II (CH) Composition of portfolio and changes in holdings (continued) For the period ended 30 November 2016 Description 31 May 2016 number/ nominal value (OZs) Purchases Disposals 30 November 2016 number/ nominal value (OZs) Traded on an official stock exchange Other investments Precious metals and stones Gold bars 254, , , , ,342, Gold held at Sub-Custodian* , ,689, Total other investments 323,689, Total traded on an official stock exchange 323,689, Total investments 323,689, Market value USD of total fund assets Sight deposits 7, Other assets Total fund assets 323,696, Other liabilities (83,221.51) (0.03) Net fund assets 323,613, * There is counterparty risk associated with the Gold held at the Sub-Custodian. The Gold held at the Sub-Custodian is the credit or debit balance on a precious metals account amounting to no more than 450 troy ounces (oz. tr.) (about 14 kg) of gold. Changes to the gold held at the Sub-Custodian are not recorded as purchases and disposals but rather as debits and credits as this is a precious metal account. This enables maximum holdings below the size of a bar to be exposed to the performance of the gold price. ishares ETF II (CH) Semi-Annual Report [9]

10 ishares ETF II (CH) ishares Gold CHF Hedged (CH) Key figures 30 November May May 2015 Total net fund assets in millions CHF Number of units outstanding 3,012, ,360, ,040, Net asset value per unit CHF [10] ishares ETF II (CH) Semi-Annual Report

11 ishares Gold CHF Hedged (CH) ishares ETF II (CH) Statement of net assets As at 30 November November May 2016 CHF CHF Due from banks, including fiduciary deposits with third-party banks, broken down into: Sight deposits 24, , Other investments Gold bars 320,013, ,934, Gold held at Sub-Custodian (76,052.04) 519, Open forward exchange transactions (2,385,680.54) (5,229,205.18) Other assets 1.80 Total fund assets, less 317,576, ,247, Other liabilities 96, , Net fund assets 317,480, ,133, Number of units outstanding 3,012, ,360, Net asset value per unit Changes in the fund s net assets Fund s net assets at the beginning of the reporting period 369,133, ,796, Issue of units 131,186, ,936, Redemption of units (162,741,299.80) (120,027,249.15) Total net income (20,098,925.79) (12,571,312.08) Fund s net assets at the end of the reporting period 317,480, ,133, Changes in number of units outstanding Number at the beginning of the reporting period 3,360, ,040, Number of units issued 1,080, ,532, Number of units redeemed (1,428, ) (1,212, ) Number at the end of the reporting period 3,012, ,360, Off-balance-sheet business Equivalent underlying value CHF 30 November May 2016 As a of net fund assets Equivalent underlying value CHF As a of net fund assets Derivative exposure Total exposure-increasing positions 24,806, ,026, Total exposure-reducing positions 346,554, ,955, ishares ETF II (CH) Semi-Annual Report [11]

12 ishares ETF II (CH) ishares Gold CHF Hedged (CH) Profit and loss account For the period ended 30 November June November 2016 CHF 1 June May 2016 Income from bank assets 1, Current net income paid in on issued units (37,176.40) (293,555.20) Total income less: (36,020.79) (293,508.40) CHF Interest paid 5, , Negative interest 1, , Remunerations to the following in accordance with the fund regulations: The Fund Management Company 715, ,197, Current net income paid out on redeemed units (139,106.40) (230,967.60) Net income (619,343.71) (1,265,583.60) Realised capital gains and losses (15,377,319.17) (48,778,379.04) Realised net income (15,996,662.88) (50,043,962.64) Unrealised capital gains and losses (4,102,262.91) 37,472, Total net income (20,098,925.79) (12,571,312.08) [12] ishares ETF II (CH) Semi-Annual Report

13 ishares Gold CHF Hedged (CH) ishares ETF II (CH) Composition of portfolio and changes in holdings (continued) For the period ended 30 November 2016 Description 31 May 2016 number/ nominal value (OZs) Purchases Disposals 30 November 2016 number/ nominal value (OZs) Traded on an official stock exchange Other investments Precious metals and stones Gold bars 310, , , , ,013, Gold held at Sub-Custodian* (63.373) (76,052.04) (0.02) 319,937, Total other investments 319,937, Total traded on an official stock exchange 319,937, Market value CHF of total fund assets Derivative financial instruments Open forward exchange transactions** CHF/USD Maturity ,063, ,270,639 (2,491,161.76) (0.78) USD/CHF Maturity , ,665 4, USD/CHF Maturity ,685,200 9,793,151 70, USD/CHF Maturity ,920,293 14,147,375 29, (2,385,680.54) (0.75) Total derivative financial instruments (2,385,680.54) (0.75) Total investments 317,552, Sight deposits 24, Other assets Total fund assets 317,576, Other liabilities (96,379.55) (0.03) Net fund assets 317,480, * There is counterparty risk associated with the Gold held at the Sub-Custodian. The Gold held at the Sub-Custodian is the credit or debit balance on a precious metals account amounting to no more than 450 troy ounces (oz. tr.) (about 14 kg) of gold. Changes to the gold held at the Sub-Custodian are not recorded as purchases and disposals but rather as debits and credits as this is a precious metal account. This enables maximum holdings below the size of a bar to be exposed to the performance of the gold price. List of closed forward exchange transactions for the period ended 30 November 2016** Maturity Transaction Currency Amount Countercurrency Countervalue Bought CHF 404,017,897 USD 411,839, Bought CHF 517,954 USD 523, Bought USD 12,725,500 CHF 12,483, Bought USD 12,447,917 CHF 12,352, Bought CHF 380,474,060 USD 385,396, Bought CHF 1,319,490 USD 1,365, Bought USD 2,428,300 CHF 2,397, Bought USD 16,482,061 CHF 16,310, Bought USD 472,700 CHF 467, Bought USD 34,593,940 CHF 33,838, Bought USD 248,730 CHF 241, Bought USD 342,386,596 CHF 328,537, Bought CHF 9,694,321 USD 10,106, Bought CHF 318,964,975 USD 332,536, Bought CHF 1,853,473 USD 1,926, Bought CHF 12,170,293 USD 12,637, Bought CHF 3,727,937 USD 3,876, Bought CHF 16,439,255 USD 17,106, Bought USD 248,919 CHF 240, Bought CHF 545,812 USD 569, Bought CHF 362,323,066 USD 377,941, Bought CHF 15,019,387 USD 15,330, Bought USD 13,936,390 CHF 13,326, Bought USD 731,844 CHF 699, Bought CHF 477,479,848 USD 488,784, Bought CHF 1,007,492 USD 1,031, Bought CHF 2,470,583 USD 2,514,954 ishares ETF II (CH) Semi-Annual Report [13]

14 ishares ETF II (CH) ishares Gold CHF Hedged (CH) List of closed forward exchange transactions for the period ended 30 November 2016** (continued) Maturity Transaction Currency Amount Countercurrency Countervalue Bought CHF 963,128 USD 981, Bought USD 7,512,450 CHF 7,338, Bought USD 1,586,930 CHF 1,550, Bought CHF 477,152,722 USD 484,213, Bought CHF 2,023,653 USD 2,048, Bought USD 6,577,750 CHF 6,481, Bought CHF 14,291,517 USD 14,717, Bought CHF 452,601,176 USD 466,172, Bought CHF 7,918,077 USD 8,155, Bought USD 1,662,128 CHF 1,617, Bought CHF 4,200,812 USD 4,367, Bought CHF 468,832,643 USD 487,382, Bought CHF 1,442,583 USD 1,499, Bought USD 162,000 CHF 155, Bought USD 15,214,306 CHF 14,734, Bought CHF 469,163,109 USD 477,873, Bought CHF 859,616 USD 877, Bought USD 11,125,650 CHF 10,922, Bought USD 494,914 CHF 479, Bought USD 134,820 CHF 130, Bought CHF 3,086,089 USD 3,173, Bought CHF 454,198,443 USD 466,995, Bought CHF 975,839 USD 1,004, Bought USD 484,258 CHF 470, Bought USD 486,405 CHF 476, Bought CHF 457,090,824 USD 470,201, Bought USD 237,195 CHF 229, Bought USD 28,492,113 CHF 27,941, Bought USD 11,743,091 CHF 11,472, Bought USD 13,627,568 CHF 13,313, Bought USD 23,210,429 CHF 22,750, Bought USD 22,357,520 CHF 21,902, Bought CHF 366,698,993 USD 370,534, Bought CHF 609,875 USD 617, Bought USD 7,536,900 CHF 7,458, Bought CHF 349,817,119 USD 352,557, Bought USD 508,060 CHF 504, Bought USD 696,245 CHF 691, Bought USD 117,059 CHF 114, Bought CHF 344,657,885 USD 351,235, Bought CHF 3,773,236 USD 3,845, Bought USD 14,206,592 CHF 14,182, Bought USD 152,058 CHF 150, Bought USD 451,791 CHF 446,159 ** The forward exchange transactions are over-the-counter (OTC) transactions. The counterparty for these OTC transactions is State Street Bank and Trust Company, London Branch. [14] ishares ETF II (CH) Semi-Annual Report

15 ishares Gold EUR Hedged (CH) ishares ETF II (CH) Key figures 30 November May May 2015 Total net fund assets in millions EUR Number of units outstanding 1,132, , ,028, Net asset value per unit EUR ishares ETF II (CH) Semi-Annual Report [15]

16 ishares ETF II (CH) ishares Gold EUR Hedged (CH) Statement of net assets As at 30 November November May 2016 EUR EUR Due from banks, including fiduciary deposits with third-party banks, broken down into: Sight deposits , Other investments Gold bars 83,512, ,508, Gold held at Sub-Custodian 224, , Open forward exchange transactions 249, (851,614.65) Other assets 3.51 Total fund assets, less 83,987, ,139, Loans 10, Other liabilities 25, , Net fund assets 83,951, ,120, Number of units outstanding 1,132, , Net asset value per unit Changes in the fund s net assets Fund s net assets at the beginning of the reporting period 60,120, ,461, Issue of units 32,530, ,640, Redemption of units (3,605,011.02) (22,172,871.76) Total net income (5,094,479.45) (808,180.79) Fund s net assets at the end of the reporting period 83,951, ,120, Changes in number of units outstanding Number at the beginning of the reporting period 780, ,028, Number of units issued 396, , Number of units redeemed (44, ) (296, ) Number at the end of the reporting period 1,132, , Off-balance-sheet business Equivalent underlying value EUR 30 November May 2016 As a of net fund assets Equivalent underlying value EUR As a of net fund assets Derivative exposure Total exposure-increasing positions 6,936, ,537, Total exposure-reducing positions 91,138, ,231, [16] ishares ETF II (CH) Semi-Annual Report

17 ishares Gold EUR Hedged (CH) ishares ETF II (CH) Profit and loss account For the period ended 30 November June November 2016 EUR 1 June May 2016 Other income 3.62 Current net income paid in on issued units (13,342.40) (10,203.20) Total income less: (13,342.40) (10,199.58) EUR Interest paid Negative interest Remunerations to the following in accordance with the fund regulations: The Fund Management Company 150, , Current net income paid out on redeemed units (5,634.80) (58,492.80) Net income (159,648.35) (195,287.13) Realised capital gains and losses (5,459,357.67) (793,664.34) Realised net income (5,619,006.02) (988,951.47) Unrealised capital gains and losses 524, , Total net income (5,094,479.45) (808,180.79) ishares ETF II (CH) Semi-Annual Report [17]

18 ishares ETF II (CH) ishares Gold EUR Hedged (CH) Composition of portfolio and changes in holdings (continued) For the period ended 30 November 2016 Description 31 May 2016 number/ nominal value (OZs) Purchases Disposals 30 November 2016 number/ nominal value (OZs) Traded on an official stock exchange Other investments Precious metals and stones Gold bars 55, , , , ,512, Gold held at Sub-Custodian* , ,737, Total other investments 83,737, Total traded on an official stock exchange 83,737, Market value EUR of total fund assets Derivative financial instruments Open forward exchange transactions** EUR/USD Maturity ,412,857 96,693, , USD/EUR Maturity ,147,690 2,975,802 (8,921.14) (0.01) USD/EUR Maturity , ,244 (364.03) 0.00 USD/EUR Maturity ,957,256 3,745,585 (15,641.91) (0.02) 249, Total derivative financial instruments 249, Total investments 83,986, Sight deposits Other assets Total fund assets 83,987, Loans (10,321.13) (0.01) Other liabilities (25,241.79) (0.03) Net fund assets 83,951, * There is counterparty risk associated with the Gold held at the Sub-Custodian. The Gold held at the Sub-Custodian is the credit or debit balance on a precious metals account amounting to no more than 450 troy ounces (oz. tr.) (about 14 kg) of gold. Changes to the gold held at the Sub-Custodian are not recorded as purchases and disposals but rather as debits and credits as this is a precious metal account. This enables maximum holdings below the size of a bar to be exposed to the performance of the gold price. List of closed forward exchange transactions for the period ended 30 November 2016** Maturity Transaction Currency Amount Countercurrency Countervalue Bought EUR 65,244,692 USD 73,622, Bought EUR 100,107 USD 112, Bought USD 1,654,315 EUR 1,466, Bought USD 2,283,449 EUR 2,036, Bought EUR 61,508,141 USD 68,752, Bought EUR 308,584 USD 344, Bought EUR 310,932 USD 352, Bought EUR 931,414 USD 1,057, Bought USD 728,490 EUR 651, Bought USD 71,103,799 EUR 62,407, Bought EUR 1,219,387 USD 1,389, Bought EUR 61,227,696 USD 69,778, Bought EUR 656,555 USD 742, Bought EUR 5,986,709 USD 6,713, Bought EUR 5,955,811 USD 6,693, Bought EUR 2,316,149 USD 2,602, Bought EUR 2,659,279 USD 2,991, Bought EUR 3,291,671 USD 3,703, Bought EUR 83,804,930 USD 94,615, Bought EUR 3,065,893 USD 3,366, Bought EUR 5,096,672 USD 5,635, Bought USD 758,700 EUR 672, Bought USD 2,762,650 EUR 2,446, Bought USD 164,034 EUR 144, Bought EUR 90,208,728 USD 99,932, Bought EUR 165,364 USD 183, Bought EUR 3,683,033 USD 4,080, Bought USD 2,048,850 EUR 1,849,496 [18] ishares ETF II (CH) Semi-Annual Report

19 ishares Gold EUR Hedged (CH) ishares ETF II (CH) List of closed forward exchange transactions for the period ended 30 November 2016** (continued) Maturity Transaction Currency Amount Countercurrency Countervalue Bought USD 3,372,987 EUR 3,046, Bought EUR 89,671,306 USD 98,773, Bought EUR 174,137 USD 191, Bought EUR 336,659 USD 369, Bought EUR 337,043 USD 370, Bought USD 789,330 EUR 716, Bought EUR 89,165,255 USD 99,679, Bought EUR 680,625 USD 760, Bought EUR 1,519,839 USD 1,699, Bought USD 292,916 EUR 262, Bought EUR 774,222 USD 873, Bought EUR 90,281,261 USD 101,846, Bought USD 770,237 EUR 680, Bought EUR 91,486,176 USD 101,950, Bought EUR 99,426 USD 111, Bought USD 1,439,790 EUR 1,292, Bought USD 380,590 EUR 338, Bought EUR 610,876 USD 687, Bought EUR 89,069,900 USD 100,241, Bought EUR 211,391 USD 237, Bought USD 1,497,065 EUR 1,339, Bought EUR 88,991,772 USD 99,669, Bought USD 560,044 EUR 498, Bought USD 3,133,281 EUR 2,797, Bought EUR 87,104,842 USD 95,975, Bought USD 1,632,995 EUR 1,482, Bought EUR 86,036,423 USD 93,989, Bought EUR 4,852,357 USD 5,385, Bought EUR 646,053 USD 718, Bought EUR 962,022 USD 1,061, Bought USD 635,075 EUR 581, Bought USD 208,874 EUR 191, Bought USD 32,516 EUR 29, Bought EUR 292,576 USD 320, Bought EUR 91,560,119 USD 100,279, Bought USD 114,044 EUR 104, Bought USD 3,792,554 EUR 3,535,746 ** The forward exchange transactions are over-the-counter (OTC) transactions. The counterparty for these OTC transactions is State Street Bank and Trust Company, London Branch. ishares ETF II (CH) Semi-Annual Report [19]

20 ishares ETF II (CH) Notes to the semi-annual report As at 30 November Sales Restrictions United States of America (US) Units of this collective investment scheme may not be offered, sold or delivered to citizens and/or residents of the US and/or persons or entities whose income and/or revenue, irrespective of source, is subject to US income tax, including those deemed to be US persons under Regulation S of the US Securities Act of 1933 and/or the US Commodity Exchange Act, as amended. 2. Information regarding the SFAMA guidelines on Distribution and Transparency The Fund Management Company and its agents do not pay any retrocessions to third parties as remuneration for distribution activity in respect of sub-fund shares in Switzerland or from Switzerland. In respect of distribution in Switzerland or from Switzerland, the Fund Management Company and its agents do not pay any rebates to reduce the fees or costs incurred by the investor and charged to the sub-fund. 3. Soft commissions The Fund Management Company has not entered into any commission sharing agreements or agreements in respect of soft commissions. 4. Valuation of the Fund s Assets and the Units a. The net asset value of each sub-fund is calculated in the reference currency of the respective sub-fund at the market value as of the end of the financial year, for each day on which units are issued or redeemed, as well as on days when no units are issued or redeemed but a morning fixing is available. The sub-fund s assets will not be calculated on days when precious metal trading in London is closed (e.g. bank and stock exchange holidays). b. Securities traded on a stock exchange or another regulated market open to the public shall be valued at the current prices paid on the main market on the order day. The value of precious metal is calculated in London on the basis of end-of-day fixings for precious metals trading. Other investments or investments for which no current market value is available shall be valued at the price which would likely be obtained in a diligent sale at the time of the valuation. In such cases, the Fund Management Company shall use appropriate and recognised valuation models and principles to determine the market value. c. The net asset value of a unit of a sub-fund is determined by the market value of that sub-fund s assets, minus all that sub-fund s liabilities, divided by the number of units of that sub-fund in issue. It will be rounded to four places after the decimal point of the unit of account. 5. Valuation of investments Level 1 Level 2 Level 3 Total ishares Gold (CH) USD USD USD USD Other investments Gold bars 323,342, ,342, Gold held at Sub-Custodian 347, , Total 323,689, ,689, ishares Gold CHF Hedged (CH) CHF CHF CHF CHF Other investments Gold bars 320,013, ,013, Gold held at Sub-Custodian (76,052.04) (76,052.04) Open forward exchange transactions (2,385,680.54) (2,385,680.54) Total 317,552, ,552, ishares Gold EUR Hedged (CH) EUR EUR EUR EUR Other investments Gold bars 83,512, ,512, Gold held at Sub-Custodian 224, , Open forward exchange transactions 249, , Total 83,986, ,986, [20] ishares ETF II (CH) S emi-annual Report

21 ishares ETF II (CH) Notes to the semi-annual report (continued) As at 30 November Valuation of investments (continued) In accordance with Article 84 paragraph 2 FINMA Collective Investment Schemes Ordinance, Investments the investments of the sub-funds are to be summarised in a table according to the following three valuation categories: Level 1 trading of investments listed in a stock exchange or in another regulated market open to the public and valued according to the prices in the primary market; Level 2 investments that are not priced according to level 1 whose value is based on market-observed parameters; Level 3 investments whose value cannot be based on market-observed parameters and are valued with suitable valuation models taking account of the current market circumstances. The determination of what constitutes market-observed parameters requires significant judgement by the Fund Management Company taking into consideration factors specific to the asset or liability. The Fund Management Company considers prices in the primary market to be market data that is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market. 6. Prospectus / Fund Contract Changes There have been no changes to the Prospectus / Fund Contract during the period ended 30 November Significant Events Effective 30 June 2016, Christian Hinze resigned as a member of the Executive Committee. Effective 25 November 2016, Michael Burch was appointed as a member of the Executive Committee. 8. Subsequent events There have been no events subsequent to the period end, which, in the opinion of the Fund Management Company, may have had an impact on the financial statements for the period ended 30 November Exchange rates Exchange rates as at 30 November 2016 CHF1= EUR CHF1= USD EUR1= CHF EUR1= USD USD1= CHF Gold Prices Gold Price as at 30 November Ounce= CHF 1, Ounce= EUR 1, Ounce= USD 1, ishares ETF II (CH) Semi-Annual Report [21]

22 Want to know more? +41 (0) BlackRock Asset Management Schweiz AG Bahnhofstrasse 39 CH-8001 Zurich 2016 BlackRock, Inc. All Rights reserved. BLACKROCK, BLACKROCK SOLUTIONS, ALADDIN, ishares, LIFEPATH, SO WHAT DO I DO WITH MY MONEY, INVESTING FOR A NEW WORLD, 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 those of their respective owners. PRISMA 16/1699 ishares ETF II ENG 1116