BlackRock Global Funds (BGF)

Transcription

1 BlackRock Global Funds (BGF) Unaudited Interim Report and Accounts 28 February 2013 R.C.S. Luxembourg: B.6317

2 Contents BGF Chairman s Letter to Shareholders 2 BGF Investment Advisers Report 4 Board of Directors 6 Management and Administration 6 Statement of Net Assets 7 Three Year Summary of Net Asset Values 13 Statement of Operations and Changes in Net Assets 35 Statement of Changes in Shares Outstanding 47 Portfolio of Investments ASEAN Leaders Fund 67 Asia Pacific Equity Income Fund 69 Asian Dragon Fund 71 Asian Growth Leaders Fund (1) 73 Asian Local Bond Fund 75 Asian Tiger Bond Fund 78 China Fund 82 Continental European Flexible Fund 84 Emerging Europe Fund 86 Emerging Markets Bond Fund 88 Emerging Markets Corporate Bond Fund (1) 93 Emerging Markets Equity Income Fund 95 Emerging Markets Fund 97 Emerging Markets Investment Grade Bond Fund (1) 99 Euro Bond Fund 101 Euro Corporate Bond Fund 113 Euro Reserve Fund 121 Euro Short Duration Bond Fund 122 Euro-Markets Fund 131 European Equity Income Fund 133 European Focus Fund 135 European Fund 137 European Growth Fund 139 European Small & MidCap Opportunities Fund 141 European Value Fund 143 Fixed Income Global Opportunities Fund 145 Flexible Multi-Asset Fund 156 Global Allocation Fund 164 Global Corporate Bond Fund 178 Global Dynamic Equity Fund 189 Global Enhanced Equity Yield Fund 198 Global Equity Fund 202 Global Equity Income Fund 204 Global Government Bond Fund Global High Yield Bond Fund Global Inflation Linked Bond Fund Global Multi-Asset Income Fund Global Opportunities Fund Global SmallCap Fund India Fund Japan Fund Japan Small & MidCap Opportunities Fund Japan Value Fund Latin American Fund Local Emerging Markets Short Duration Bond Fund New Energy Fund North American Equity Income Fund Pacific Equity Fund Renminbi Bond Fund Swiss Small & MidCap Opportunities Fund United Kingdom Fund US Basic Value Fund US Dollar Core Bond Fund US Dollar High Yield Bond Fund US Dollar Reserve Fund US Dollar Short Duration Bond Fund US Flexible Equity Fund US Government Mortgage Fund US Growth Fund US Small & MidCap Opportunities Fund World Agriculture Fund World Bond Fund World Energy Fund World Financials Fund World Gold Fund World Healthscience Fund World Income Fund World Mining Fund World Real Estate Securities Fund (1) World Resources Equity Income Fund World Technology Fund Notes to the Financial Statements General Information Appendix I Share Classes Launched and In Issue (1) See Notes section Subscriptions may be made only on the basis of the current Prospectus, together with the most recent audited annual report and accounts and unaudited interim report and accounts. Copies are available from the Investor Services Centre, the Transfer Agent, the Manager or any of the Distributors. Unaudited Interim Report and Accounts 1

3 BGF Chairman s Letter to Shareholders March 2013 Dear Shareholder, I am writing to update you on the activities of BlackRock Global Funds (BGF) over the six months to the end of February The Funds performance is covered in more detail in the separate Investment Adviser s report in which you will see that capital markets enjoyed strong gains during the period. The six months saw a marked improvement in the global macroeconomic landscape as expectations of increased monetary support in the US and the Eurozone led investor sentiment higher. Central Bank initiatives included unlimited asset purchase programmes launched on both sides of the Atlantic early in the period. Japan has been a particularly bright spot in the global equity markets, especially after the Liberal Democratic Party, which advocated increased fiscal and monetary stimulus and a weaker yen, won a significant victory at the end of The TOPIX Index rose by 34.9% in local currency terms, outperforming the broader global equity market. Emerging markets also demonstrated notable outperformance during the period, with the MSCI All-Companies Asia Pacific ex Japan Index and the MSCI Emerging Markets Index up 16.3% and 12.1% respectively in US dollar terms, compared to 10.9% for the MSCI World Index. In fixed income, government bonds posted a decline and underperformed corporate bonds, while high yield bonds did particularly well. The JP Morgan Global Government Bond Index fell by 2.7%, compared to a gain of 7.8% for the Bank of America Merrill Lynch Global High Yield Index. Shorter-dated bonds outperformed more risky longer-dated debt, with the Bank of America Merrill Lynch 1-3 year US Corporate and Government Bonds Index posting a small gain of 0.5%. European fixed income securities were also relatively strong, with the Barclays Euro-Aggregate 500mm+ Bond Index up 3.8%. The assets under management (AUM) in the BGF range have increased from US$79.3bn to US$89.0bn over the period, driven by a combination of positive performance and client inflows. Equity income funds continued to be very popular with investors as interest rates remained at historic lows across the developed world. Some of the most notable climbers in AUM terms in that area included the BGF Global Equity Income Fund, which increased from US$919.7m to US$1.3bn over the period. More specialist funds that were popular with income investors were the BGF European Equity Income Fund and the BGF Asia Pacific Equity Income Fund; they grew in size from US$68.5m to US$156.4m and from US$79.7m to US$159.6m respectively. Another European equity fund which fared particularly well was BGF European Growth Fund, which grew from US$370.9m to US$611.2m. Emerging markets seemed to retain their appeal, with the BGF China Fund increasing in size from US$693.2m to US$1.4bn. Fixed income funds also attracted healthy inflows as corporate bond performance was supported by central bankers asset purchasing programmes on both sides of the Atlantic. The BGF Fixed Income Global Opportunities Fund increased from US$171.0m to US$512.3m, the BGF World Bond Fund grew from US$588.9m to US$ 910.2m, while the more cautiously positioned BGF US Dollar Short Duration Bond Fund increased in size from US$245.5m to US$494.5m. The Renminbi Bond Fund, which invests in Chinese bonds, increased from US$86.4m to US$142.8m. In contrast, a fall in the gold price amid improving market sentiment towards the Eurozone and the partial resolution of the fiscal cliff in the US led many investors to take a cautious stance on the gold sector, with the BGF World Gold Fund experiencing a significant decrease in its size from US$6.7bn to US$5.5bn over the period. We continue to develop our BGF equity fund range to ensure that it continues to meet our clients requirements as economies and markets grow, change and evolve. At the end of October, we launched the BGF Asian Growth Leaders Fund, which offers our clients exposure to some of the best growth opportunities across Asian emerging markets. It is managed by Andrew Swan, Managing Director and Head of BlackRock s Asian Fundamental Equities team and invests in equity securities of companies in the Asia ex-japan region, maintaining an emphasis on the services sector and a bias towards mid-cap securities where risk-return characteristics are the most attractive, in our view. At the end of February, we launched three other new funds, two of them to offer exposure to different areas of emerging market debt for investors seeking to diversify their sources of income and capital appreciation within fixed income. The BGF Emerging Markets Corporate Bond Fund invests in hard currency corporate bonds issued by companies in emerging markets, while the BGF Emerging Markets Investment Grade Bond Fund is based on an innovative blend strategy combining investment-grade corporate bonds, sovereign debt and exposure to currency market dynamics. The information stated in this report is historical and not necessarily indicative of future performance. 2 BlackRock Global Funds (BGF)

4 BGF Chairman s Letter to Shareholders March 2013 continued Another new fund launched at the end of February was the BGF World Real Estate Securities Fund, managed by the Head of BlackRock s Real Estate Securities Group Mark Howard-Johnson. The Fund, which was launched as the global property market continued to show signs of a broadly-based recovery, invests in a portfolio of shares of property companies and Real Estate Investment Trusts (REITs). With its focus on long-term performance, the Fund invests globally across an attractive, income-generative asset class, whose key benefits include inflation protection, at fund level tax-efficient exposure to property returns and strong liquidity and diversification compared with direct property investments. Should you have any questions on any of this material, please contact us via our website: Yours faithfully, Nicholas C.D. Hall Chairman The information stated in this report is historical and not necessarily indicative of future performance. Unaudited Interim Report and Accounts 3

5 BGF Investment Advisers Report Performance overview 1 September February 2013 An improving macroeconomic tone led to good gains across most major asset classes during the six months. European countries made significant progress towards preventing the much-feared break-up of the euro. In September, the European Central Bank introduced the Outright Monetary Transactions (OMT) programme to purchase short-dated European peripheral debt. Germany then signalled some softening in its position on the Eurozone s rescue, with the country s constitutional court deciding in favour of the European Stability Mechanism. In the US, September saw confirmation of the Federal Reserve s new (and this time unlimited) round of quantitative easing, known as QE3, designed to stimulate the housing market and keep long-term interest rates low. The Japanese equity market rallied strongly following the landslide victory of the opposition Liberal Democratic Party in December. The new government pressed on with an agenda to reflate the country s economy and one of its principle objectives of weakening the yen. Over the past five or six years the currency has appreciated significantly and, as a result, Japan s share of world trade has declined from 15% to 9%. A weaker yen would be positive for equity markets, and in particular, would help exporters become more competitive. Japan s new policy objectives relate to fiscal stimulus, monetary stimulus and lower corporate taxes. Under the pressure from the new government, the Bank of Japan adopted an inflation target of 2% at the end of January and started a discussion over launching significant monetary easing measures. In emerging markets, Chinese economic data disappointed for much of the period, prompting concerns that the current policy response from the country s authorities may not be enough to counter its slowing economic growth. In contrast, Latin American economies continued to grow strongly, with signs that Brazilian monetary easing may be making a positive impact on the levels of economic activity. Towards the end of the reporting period, an improving environment in China and a move towards a solution to the fiscal cliff in the US helped sentiment turn even more positive. The recent dominant theme has been a slight acceleration of the global economy from a low base, which has been led mainly by Asia and by China in particular. We have also seen moderately better news from the US, where growth is clearly holding up despite the existing headwinds. Fund Performance Performance data stated is for the main (A) share class of the relevant Fund, stated in the base currency of the Fund. Equity Fund Performance The best performance came from funds investing in Japan, which benefited from a sharp rise in the Japanese equity market in the run-up to, and following the election of, a new government which strongly advocated Central Bank intervention and a weaker yen to support the country s economy. The BGF Japan Small & MidCap Opportunities Fund rose by 38.0%, outperforming its benchmark by almost 5% over the period. The BGF Japan Value Fund was up 37.5%, compared to 35.7% for the MSCI Japan Index, while the BGF Japan Fund rose by 33.0% but underperformed the TOPIX Index, which was up 34.9%. Emerging market equity funds also delivered strong relative returns, particularly those with a focus on high yield stocks, which remained an important area for income-seeking investors. The BGF Emerging Markets Equity Income Fund rose by 17.2%, outperforming its benchmark index by over 5 percentage points. The BGF Asia Pacific Equity Income Fund delivered particularly strong relative performance with a gain of 25.7%, outperforming the MSCI All-Companies Asia Pacific Index, which was up 16.3%. The BGF China Fund rose by 24.0%, compared to 20.5% for the MSCI China 10/40 Index. The recently launched (8 August 2012) BGF ASEAN Leaders Fund gained 23.0% compared to its benchmark s 12.7%. As investors risk appetite returned to equity markets, financials were among the best performers over the period, buoyed by betterthan-expected results released during the latest reporting season. The BGF World Financials Fund gained 20.0%, roughly in line with its benchmark index. In contrast, the waning appeal of traditional safe haven assets led to declines in both physical gold and gold share prices. That was subsequently reflected in the performance of the BGF World Gold Fund, which was down 12.4% over the six months, although the Fund outperformed its benchmark, the FTSE Gold Mines Index, which declined by 19.2%. European equities recovered after a period of weakness amid some progress made towards a resolution of the Eurozone debt crisis, with the BGF Continental European Flexible Fund gaining 16.0% in euro terms and outperforming the FTSE World Europe ex UK Index, which was up 12.3%. The BGF Swiss Small and MidCap Opportunities Fund benefited from strength in its underlying market over the period, registering a gain of 19.1%. Mixed Asset Fund Performance The diversified BGF Global Allocation Fund, which invests in a mixture of fixed income securities, equities and cash, gained 5.9%, outperforming its composite benchmark, which rose by 5.7%. Another of our key multi-asset strategies, the BGF Flexible Multi-Asset Fund, also generated good performance with a positive absolute return of 5.9% and outperformed its composite benchmark, which was up 5.7%. The Fund invests in an activelymanaged portfolio of global equities and bonds, with some tactical exposure to alternative assets and specialist markets. The information stated in this report is historical and not necessarily indicative of future performance. 4 BlackRock Global Funds (BGF)

6 BGF Investment Advisers Report Performance overview 1 September February 2013 continued The BGF Global Multi-Asset Income Fund, which was launched on 28 June 2012, rose by 7.6% over the period. The Fund combines the ability to allocate actively across a full range of asset classes and geographies at a top-down level with a focus on adding value through bottom-up security selection by specialist teams in each key asset class. Fixed Income Fund Performance The BGF Global High Yield Bond Fund continued to deliver the strongest absolute performance relative to other fixed income funds within the BGF range, achieving a gain of 6.2% but underperforming its benchmark index, which was up 7.8%. The Fund maintained its higher quality income-oriented bias and its cautious stance on higher-beta cyclical corporate bonds with volatile revenue streams as well as greater vulnerability to slow, yet improving, economic growth. At the end of the period, the portfolio held a large underweight to BB-rated bonds, with an overweight to B-rated corporate bonds, and an overweight to high-conviction CCC-rated issues with favourable characteristics and catalysts for price appreciation. Across sectors, the Fund was overweight the energy, healthcare, and chemicals sectors, while underweight riskier and consumer discretionary sectors, such as banking, autos and restaurants. The Fund ended the period with an average credit rating of B2/B+ and a yield of 6.0%. The BGF US Dollar High Yield Bond Fund also generated strong absolute returns with a gain of 5.8%, but lagged its benchmark index, which was up 6.7%. For the US economy to continue with its admittedly slow yet steady recovery, Washington will need to deliver a more constructive fiscal roadmap before businesses feel confident to invest and to hire. Elsewhere, Chinese growth has rebounded and although it has moderated from its peak, we expect it to remain relatively elevated as key industrial, manufacturing, and investment indicators have continued to improve, which bodes well for a number of emerging markets. As for Europe, we expect the economic recovery there to be a much slower and drawn out process on account of the required fiscal tightening occurring across many countries. Performance as at end February 2013; Source: Morningstar; basis: NAV price with gross dividends reinvested, net of expenses. Another strong performer in absolute terms was the BGF Local Emerging Markets Short Duration Bond Fund, which gained 5.6%, compared to 3.5% for its benchmark index. Outlook Although we have seen improvements in both Chinese and US economic data, market volatility may be created by events in the Eurozone and negotiations surrounding the fiscal cliff in the US. We maintain our base case for sluggish and fragmented growth, characterised by mild recession in Europe and sub-trend growth in the US. In equity markets, valuations remain at attractive levels in a number of regions and sectors. We anticipate 2013 to be a year of transition to an environment of rising interest rates, as a Congressional agreement that averted the fiscal cliff in the US and signs of steady improvement in US economic growth may lead investors to demand higher yields on fixed income products. Further, the Fed s recent decision to link policy more explicitly to economic data and indications of support among Federal Open Market Committee (FOMC) members for ending QE in 2013 introduced greater uncertainty regarding the extent of policy accommodation. However, we expect rates to follow a meandering path higher given the presence of numerous risks, including mishaps in the debt ceiling negotiations in the US and a relapse in Europe, and a Fed that remains on hold. The information stated in this report is historical and not necessarily indicative of future performance. Unaudited Interim Report and Accounts 5

7 Board of Directors (1) Management and Administration continued Nicholas C. D. Hall (Chairman) Frank P. Le Feuvre Alexander Hoctor-Duncan Francine Keiser Geoffrey D. Radcliffe Bruno Rovelli (2) Custodian The Bank of New York Mellon (International) Limited Luxembourg Branch 2-4, rue Eugène Ruppert L-2453 Luxembourg Grand Duchy of Luxembourg (1) All Directors are non-executive (2) Appointed 20 February 2013 Management and Administration Management Company BlackRock (Luxembourg) S.A. 6D route de Trèves, L-2633 Senningerberg Grand Duchy of Luxembourg Investment Advisers BlackRock Financial Management, Inc. Park Avenue Plaza, 55 East 52 nd Street, New York, NY 10055, USA Fund Accountant The Bank of New York Mellon (International) Limited Luxembourg Branch 2-4, rue Eugène Ruppert L-2453 Luxembourg Grand Duchy of Luxembourg Transfer Agent and Registrar J.P. Morgan Bank Luxembourg S.A. 6C, route de Trèves, L-2633 Senningerberg Grand Duchy of Luxembourg Auditor PricewaterhouseCoopers, Société coopérative 400, route d Esch, L-1471 Luxembourg Grand Duchy of Luxembourg BlackRock International Limited 40 Torphichen Street, Edinburgh EH3 8JB, Scotland BlackRock Investment Management, LLC 100 Bellevue Parkway, Wilmington, Delaware 19809, USA BlackRock Investment Management (UK) Limited 12 Throgmorton Avenue, London EC2N 2DL, UK BlackRock (Singapore) Limited # Twenty Anson, 20 Anson Road, Singapore, BlackRock Institutional Trust Company N.A. 400 Howard Street, San Francisco CA 94105, USA Sub-Investment Advisers BlackRock (Hong Kong) Limited 16/F Cheung Kong Center, 2 Queen s Road Central, Hong Kong BlackRock Japan Co. Limited Marunouchi, Chiyoda-ku, Tokyo , Japan BlackRock Investment Management (Australia) Limited Level 18, 120 Collins Street, Melbourne 3000, Australia Principal Distributor BlackRock (Channel Islands) Limited One Waverley Place, Union Street, St. Helier, Jersey JE1 0BR Channel Islands Legal Advisers Linklaters LLP 35 avenue John F. Kennedy, L-1855 Luxembourg Grand Duchy of Luxembourg Listing Agent J.P. Morgan Bank Luxembourg S.A. 6C, route de Trèves, L-2633 Senningerberg Grand Duchy of Luxembourg Paying Agents A list of Paying Agents is to be found on page 343. Registered Office 2-4, rue Eugène Ruppert L-2453 Luxembourg Grand Duchy of Luxembourg Enquiries In the absence of other arrangements, enquiries regarding the Company should be addressed as follows: Written enquiries: BlackRock Investment Management (UK) Limited c/o BlackRock (Luxembourg) S.A. P.O. Box 1058 L-1010 Luxembourg Grand Duchy of Luxembourg All other enquiries: Telephone: Fax: investor.services@blackrock.com 6 BlackRock Global Funds (BGF)

8 Statement of Net Assets as at 28 February 2013 Fund Name Note BlackRock Global Funds Combined ASEAN Leaders Fund Asia Pacific Equity Income Fund Asian Dragon Fund Asian Growth Leaders Fund (1) Asian Local Bond Fund Asian Tiger Bond Fund China Fund Continental European Flexible Fund Emerging Europe Fund Emerging Markets Bond Fund Emerging Markets Corporate Bond Fund (1) US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ Assets Securities portfolio at cost 82,601,336,810 49,518, ,249, ,471,142 5,653,828 74,281, ,067,460 1,428,550,790 1,194,184,502 1,560,147,677 1,042,722,625 38,493,881 (depreciation) 5,993,391,121 8,109,541 15,499,099 94,941, ,858 1,149,832 29,266,345 11,617, ,958,120 66,418,792 81,374,268 31,383 Securities portfolio at market value 2(a) 88,594,727,931 57,628, ,748, ,412,274 6,334,686 75,430, ,333,805 1,440,168,061 1,328,142,622 1,626,566,469 1,124,096,893 38,525,264 Cash at bank 2(a) 980,350, ,504 11,823,403 47, ,829 5,233,176 30,492, ,739 8,144,489 2,995, ,257,159 1,135,310 Interest and dividends receivable 2(a) 386,764,691 25, , ,555 5, ,162 10,951,524 53, ,391 8,207 21,168, ,715 Receivable for investments sold 2(a) 1,223,603,881 57,363 2,089,833 1,438,011 6,828,567 10,265,141 12,762,773 43,291,152 Receivable for Fund shares subscribed 2(a) 593,626,522 4,902,839 1,892, ,000 15,479,180 12,714,615 35,912,746 2,326,123 5,245,697 35,385,000 appreciation on: Open Futures contracts 2(c) 7,860, ,980 32, ,065 Open Forward foreign exchange contracts 2(c) 31,255, ,614 48,460 Market value of swaps 2(c) 4,734,199 Market value of purchased options/swaptions 2(c) 124,516,398 2,424 1,512,500 Other assets 2(a,c) 10,848,619 9, , ,508 2,022, ,957 69,218 Total assets 91,958,289,109 58,039, ,163, ,593,592 6,483,819 82,365, ,085,119 1,456,677,323 1,383,283,346 1,644,777,219 1,350,572,233 75,586,289 Liabilities Cash owed to bank 109,692, ,106 13,483,103 18,131 7,060,837 3,519,531 Income distribution payable 2(a) 14,983,738 83, ,068 1,496,490 1,020,685 Payable for investments purchased 2(a) 1,857,362, ,938 2,568,564 1,163,191 2,965,567 19,877,498 72,693,060 4,832,384 40,469,289 24,813,235 Payable for Fund shares redeemed 2(a) 496,834, ,412 5,141,376 4,329,102 12,205,273 11,589,325 3,806,933 3,868,173 depreciation on: Open Futures contracts 2(c) 21,044, , ,195 Open Forward foreign exchange contracts 2(c) 197,456, , ,823 3,606,454 31,879 7,331, Market value of swaps 2(c) 11,375, ,179 9,582,298 Market value of written options/swaptions 2(c) 57,284,806 Other liabilities 4, 5, 6 152,504,353 29, , ,797 1,942 43,431 1,149,548 4,410,695 1,723,602 4,302,248 2,300, ,446 Total liabilities 2,918,538, ,426 3,528,428 7,845,470 1,942 3,393,949 28,205,352 33,705,525 86,055,997 20,002,402 69,065,193 25,157,771 Total net assets 89,039,750,369 57,876, ,635, ,748,122 6,481,877 78,971, ,879,767 1,422,971,798 1,297,227,349 1,624,774,817 1,281,507,040 50,428,518 (1) New Fund launched, see Note 1, for further details. The notes on pages 334 to 342 form an integral part of these financial statements. Unaudited Interim Report and Accounts 7

9 Statement of Net Assets as at 28 February 2013 continued Fund Name Note Emerging Markets Equity Income Fund Emerging Markets Fund Emerging Markets Investment Grade Bond Fund (1) Euro Bond Fund Euro Corporate Bond Fund Euro Reserve Fund US$ US$ US$ Euro Short Duration Bond Fund Euro- Markets Fund European Equity Income Fund European Focus Fund European Fund European Growth Fund Assets Securities portfolio at cost 13,159, ,760,816 24,554,723 1,682,271, ,946,249 55,038,804 2,715,319,355 2,527,732, ,616,188 1,223,888,875 3,135,972, ,651,589 (depreciation) 1,310, ,334,467 (113,825) 42,954,652 8,371,895 (21,073) 37,120, ,532,969 8,905, ,849, ,688,176 61,876,626 Securities portfolio at market value 2(a) 14,469,421 1,033,095,283 24,440,898 1,725,226, ,318,144 55,017,731 2,752,440,332 2,902,265, ,522,157 1,394,738,122 3,539,660, ,528,215 Cash at bank 2(a) 66, ,983 5,017,054 13,764,892 3,884,832 4,213,474 7,222, ,485 14,854, Interest and dividends receivable 2(a) 7,238 1,535, ,862 23,999,626 5,883, ,082 25,928,007 1,513, , ,145 2,397, ,343 Receivable for investments sold 2(a) 43,556 7,232,397 74,542,574 4,594,403 29,295,923 17,651,849 7,807,918 29,612,943 6,433,591 Receivable for Fund shares subscribed 2(a) 2,815,901 4,564,594 62, ,472 14,854,833 46,270,672 9,995,629 18,121,961 19,855,247 2,085,667 appreciation on: Open Futures contracts 2(c) Open Forward foreign exchange contracts 2(c) 42,173 3,216,636 1,521,265 8,340,687 4, ,524 Market value of swaps 2(c) 469, ,240 Market value of purchased options/swaptions 2(c) 5,637,942 1,189,395 8,396,059 Other assets 2(a,c) ,758 1,769 17,931 14, , ,314 18, ,285 1,098,037 6,667 Total assets 14,587,185 1,045,183,830 29,927,987 1,851,424, ,472,084 59,815,978 2,846,791,439 2,968,647, ,930,432 1,437,188,997 3,593,099, ,517,489 Liabilities Cash owed to bank 2 1,933,483 49, , ,144 23,409,739 9,333,240 4,696,433 Income distribution payable 2(a) 29,600 8,808 15,491 Payable for investments purchased 2(a) 139,613 5,998,183 53,673,751 6,749,291 4,817,638 55,543, ,991 6,124,646 28,735, ,545,513 9,366,915 Payable for Fund shares redeemed 2(a) 22,439 3,763,951 30,967,661 3,660, ,577 10,267,091 57,395, ,940 2,262,526 5,269, ,829 depreciation on: Open Futures contracts 2(c) 1,629, ,778 4,677,943 Open Forward foreign exchange contracts 2(c) 61,146 Market value of swaps 2(c) 59,785 Market value of written options/swaptions 2(c) 6,024,079 1,270,960 8,961,979 Other liabilities 4, 5, 6 28,592 1,886, ,979, ,676 49,016 2,504,141 3,962, ,461 1,925,029 4,505, ,147 Total liabilities 251,792 13,581, ,352,379 12,520,223 5,396,231 82,733,346 84,876,646 6,579,047 32,922, ,653,833 15,088,324 Total net assets 14,335,393 1,031,601,869 29,927,434 1,757,072, ,951,861 54,419,747 2,764,058,093 2,883,771, ,351,385 1,404,266,383 3,440,445, ,429,165 (1) New Fund launched, see Note 1, for further details. 8 BlackRock Global Funds (BGF)

10 Statement of Net Assets as at 28 February 2013 continued Fund Name Note European Small & MidCap Opportunities Fund European Value Fund Fixed Income Global Opportunities Fund Flexible Multi-Asset Fund Global Allocation Fund Global Corporate Bond Fund Global Dynamic Equity Fund Global Enhanced Equity Yield Fund Global Equity Fund Global Equity Income Fund Global Government Bond Fund US$ US$ US$ US$ US$ US$ US$ US$ US$ Global High Yield Bond Fund Assets Securities portfolio at cost 294,334, ,910, ,182, ,740,976 12,714,174,874 1,147,822, ,032, ,721, ,966,433 1,139,722, ,051,178 1,720,845,784 (depreciation) 24,200,428 43,569,662 5,042,628 12,567,033 1,341,122,629 57,586, ,744,003 7,631,295 26,637, ,323,774 3,753,269 48,911,576 Securities portfolio at market value 2(a) 318,535, ,480, ,224, ,308,009 14,055,297,503 1,205,409, ,776, ,352, ,604,202 1,274,045, ,804,447 1,769,757,360 Cash at bank 2(a) 13,819,986 1,109,865 32,392,316 11,454,593 24,972,874 19,745,902 3,413,273 9,224,030 4,548,406 6,175,002 17,909,633 50,365,451 Interest and dividends receivable 2(a) 176, ,234 3,735, ,304 44,005,533 16,608,737 1,272, , ,556 4,601,605 4,657,195 30,659,708 Receivable for investments sold 2(a) 18,503, ,679 10,626,564 2,235,752 38,605,939 34,348,057 3,671,109 1,507,008 2,349,232 4,436,887 Receivable for Fund shares subscribed 2(a) 410, ,926 11,035, ,326 89,434,163 2,541, ,274 41, ,147 14,233, ,870 7,957,450 appreciation on: Open Futures contracts 2(c) 196,329 6,079, ,980 38,816 Open Forward foreign exchange contracts 2(c) 1,099, ,965 2,465,334 Market value of swaps 2(c) 1,302,864 55,567 93,158 1,365,367 12,598 Market value of purchased options/swaptions 2(c) 341,296 2,033,831 86,920,231 3,528,810 Other assets 2(a,c) 274, ,662 18,705 1,580, ,142 74,997 67, ,352 Total assets 351,719, ,769, ,658, ,591,676 14,346,989,531 1,280,019, ,544, ,220, ,449,980 1,299,227, ,774,309 1,863,176,856 Liabilities Cash owed to bank 1,565, ,649 2,674,745 80, ,268 Income distribution payable 2(a) 768,539 20,457 46,899 1,648,514 Payable for investments purchased 2(a) 17,175, ,014 46,742,165* 2,089,200 59,968,173* 60,388,227* 1,898,861 3,147,571 3,291,686 10,201,488 13,421,778 Payable for Fund shares redeemed 2(a) 1,767, , , ,580 37,808,002 2,116,070 3,119, , ,046 6,974,692 2,978,678 20,960,228 depreciation on: Open Futures contracts 2(c) 3,327,769 1,539, , ,055 Open Forward foreign exchange contracts 2(c) 5,581, ,358,737 11,323, ,976 72,753 3,559,027 20,537,101 Market value of swaps 2(c) 881,757 Market value of written options/swaptions 2(c) 12,876 1,520,733 27,912,605 1,633, ,623 Other liabilities 4, 5, 6 632, , , ,320 22,558,682 1,180,139 1,445, , ,920 1,649, ,148 2,201,399 Total liabilities 21,141,042 1,890,735 56,393,837 4,626, ,280,944 77,315,964 8,177,795 1,432,011 4,041,290 15,495,568 15,060,312 60,121,832 Total net assets 330,578, ,879, ,264, ,965,194 14,082,708,587 1,202,703, ,366, ,788, ,408,690 1,283,731, ,713,997 1,803,055,024 * Includes TBAs, see Note 2, for further details. The notes on pages 334 to 342 form an integral part of these financial statements. Unaudited Interim Report and Accounts 9

11 Statement of Net Assets as at 28 February 2013 continued Fund Name Note Global Inflation Linked Bond Fund Global Multi-Asset Income Fund Global Opportunities Fund Global SmallCap Fund India Fund Japan Fund Japan Small & MidCap Opportunities Fund Japan Value Fund Latin American Fund Local Emerging Markets Short Duration Bond Fund New Energy Fund North American Equity Income Fund US$ US$ US$ US$ US$ US$ US$ US$ US$ Assets Securities portfolio at cost 206,491,130 43,451,699 87,971, ,470, ,994,825 4,451,138,572 15,121,698,779 9,680,307,139 3,936,416, ,416,790 1,735,183, ,713,869 (depreciation) 11,214,439 3,390,676 13,518,866 44,358,492 34,979,677 1,058,011,528 2,819,642,521 2,244,934, ,519,233 (3,952,352) (361,703,583) 11,506,553 Securities portfolio at market value 2(a) 217,705,569 46,842, ,490, ,828, ,974,502 5,509,150,100 17,941,341,300 11,925,241,750 4,512,935, ,464,438 1,373,480, ,220,422 Cash at bank 2(a) 2,446,006 5,179,791 1,512,730 3,773,683 8,554, ,639, ,138, ,748,333 11,738,239 43,006,616 1,319,002 7,378,794 Interest and dividends receivable 2(a) 805, ,282 97, ,108 94,468 4,653,969 25,262,280 12,723,233 19,895,770 12,566,104 3,805, ,573 Receivable for investments sold 2(a) 46, ,185 1,111,351 16,020,736 90,669, ,363, ,900,747 45,401,502 71,994 Receivable for Fund shares subscribed 2(a) 889,498 52, , , ,158 23,284,662 65,743,767 66,124,039 8,250,435 2,494,494 1,042,314 1,008,322 appreciation on: Open Futures contracts 2(c) 114, ,985 Open Forward foreign exchange contracts 2(c) 1,911, , ,879 1,664,337 11,450,723 2,385,277 Market value of swaps 2(c) 202,164 Market value of purchased options/swaptions 2(c) ,164 4,862,144 Other assets 2(a,c) 25,329 34,812 60, ,898 5,054 42, Total assets 224,074,318 52,931, ,161, ,618, ,095,185 5,904,237,610 18,491,513,399 12,486,384,723 4,598,221, ,784,127 1,379,761, ,989,274 Liabilities Cash owed to bank 4,039, ,245 2, ,936 2, ,543 Income distribution payable 2(a) 3, ,271 Payable for investments purchased 2(a) 220, ,758 1,030,037 1,036,113 87,788, ,707,898 12,857, ,530 Payable for Fund shares redeemed 2(a) 631, , ,239 13,528,833 51,806, ,311, ,781,960 21,690,631 6,694,618 3,345, ,579 depreciation on: Open Futures contracts 2(c) 17,224 1,346,625 Open Forward foreign exchange contracts 2(c) 45, , Market value of swaps 2(c) 20,013 Market value of written options/swaptions 2(c) 30,022 Other liabilities 4, 5, 6 224,022 26, , ,361 1,012,857 21,537,228 44,882, ,908,351 8,611,902 1,500,636 2,472, ,729 Total liabilities 5,119, ,287 1,418,646 2,188,663 14,558, ,136, ,901, ,693,168 43,476,698 10,026,150 5,817, ,282 Total net assets 218,954,826 52,605, ,742, ,430, ,536,224 5,743,101,191 18,062,611,735 12,002,691,555 4,554,744, ,757,977 1,373,944, ,302, BlackRock Global Funds (BGF)

12 Statement of Net Assets as at 28 February 2013 continued Fund Name Note Pacific Equity Fund Renminbi Bond Fund Swiss Small & MidCap Opportunities Fund United Kingdom Fund US Basic Value Fund US Dollar Core Bond Fund US Dollar High Yield Bond Fund US Dollar Reserve Fund US Dollar Short Duration Bond Fund US Flexible Equity Fund US Government Mortgage Fund US$ CNH CHF US$ US$ US$ US$ US$ US$ US$ US$ US Growth Fund Assets Securities portfolio at cost 163,594, ,030, ,537, ,176, ,731, ,208,272 4,438,067, ,726, ,215, ,117, ,304, ,915,535 (depreciation) 23,568,357 9,366,731 64,925,018 45,591, ,056,764 11,528, ,964,804 (113,407) 1,103, ,228, ,215 18,757,174 Securities portfolio at market value 2(a) 187,163, ,397, ,462, ,767,886 1,067,788, ,737,086 4,607,032, ,613, ,318, ,345, ,260, ,672,709 Cash at bank 2(a) 4,581,609 60,121,746 33,186,748 3,809,311 15,230,987 1,983,493 92,073,000 1,388 13,385,744 21,891,489 2,565, Interest and dividends receivable 2(a) 310,643 6,872,336 72, ,216 2,430,942 3,260,564 77,649, ,986 3,634,864 1,091,522 1,750,512 64,262 Receivable for investments sold 2(a) 2,457,423 2,886,709 7,607, ,666,740 17,590,887 14,448,293 1,579, ,658,767 3,108,129 Receivable for Fund shares subscribed 2(a) 8,821,144 26,020,824 7,939, ,885 1,674,563 3,616,015 36,160,168 13,602, ,391 1,131, , ,141 appreciation on: Open Futures contracts 2(c) Open Forward foreign exchange contracts 2(c) 137, , ,467 1,963,816 Market value of swaps 2(c) 240,426 50,305 Market value of purchased options/swaptions 2(c) 651 4,170, Other assets 2(a,c) 12,578 5,276 21, , ,369 11,417 Total assets 203,347, ,555, ,547, ,283,840 1,094,732, ,795,051 4,831,247, ,442, ,757, ,039, ,131, ,565,301 Liabilities Cash owed to bank ,534,859 12,773,365 22,130 65,347 Income distribution payable 2(a) 215, ,131 8,197,323 85, ,105 Payable for investments purchased 2(a) 6,701,919 21,747,704 1,233,013 1,331,264 3,220, ,835,916* 41,908,891 14,377,216 23,912,345* 507,446,391* 2,025,262 Payable for Fund shares redeemed 2(a) 1,697,459 1,330,451 14,878,024 3,341,574 19,269,881 3,584,760 11,444,040 7,013, ,438 2,576,994 2,562, ,878 depreciation on: Open Futures contracts 2(c) 378,186 1,450, , ,370 Open Forward foreign exchange contracts 2(c) 1,231, ,545 3,191,185 Market value of swaps 2(c) 2,903 61, Market value of written options/swaptions 2(c) 3,623,951 Other liabilities 4, 5, 6 310, , , ,871 1,680,818 1,430,861 5,756, , ,753 1,152,657 1,454, ,589 Total liabilities 8,709,897 24,056,236 16,853,491 5,050,047 25,403, ,574,664 68,818,973 35,069,736 25,297,298 6,920, ,878,091 3,159,076 Total net assets 194,637, ,499, ,693, ,233,793 1,069,328, ,220,387 4,762,429, ,372, ,460, ,118, ,253, ,406,225 * Includes TBAs, see Note 2, for further details. The notes on pages 334 to 342 form an integral part of these financial statements. Unaudited Interim Report and Accounts 11

13 Statement of Net Assets as at 28 February 2013 continued Fund Name Note US Small & MidCap Opportunities Fund World Agriculture Fund World Bond Fund World Energy Fund World Financials Fund World Gold Fund World Healthscience Fund World Income Fund World Mining Fund World Real Estate Securities Fund (1) World Resources Equity Income Fund US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ World Technology Fund Assets Securities portfolio at cost 353,896, ,670, ,689,087 2,733,974, ,304,083 4,914,671, ,510, ,481,332 10,331,845,756 4,908,149 9,212, ,857,270 (depreciation) 46,830,635 10,629,818 8,439, ,790,618 35,900, ,418,182 82,017,903 13,508,692 (12,571,912) 58,159 (133,843) 10,855,669 Securities portfolio at market value 2(a) 400,726, ,299, ,128,956 2,878,764, ,204,916 5,552,089, ,527, ,990,024 10,319,273,844 4,966,308 9,078, ,712,939 Cash at bank 2(a) 10,812, ,439 25,050,195 46,839,687 18,978,156 13,307,296 31,078,300 18,564,077 27,094, , ,041 2,853,086 Interest and dividends receivable 2(a) 249, ,148 10,045,623 7,995, ,385 1,511,429 1,088,317 3,315,421 4,512,994 1,337 16, ,871 Receivable for investments sold 2(a) 3,287,510 4,531,424 79,372,686 23,239,023 12,256,289 3,639,245 4,616,784 Receivable for Fund shares subscribed 2(a) 3,269, ,137 6,252,361 3,515,334 1,267,484 26,690,786 4,124, ,857 34,431,709 38,318 3,195,116 appreciation on: Open Futures contracts 2(c) Open Forward foreign exchange contracts 2(c) 1,277,272 Market value of swaps 2(c) 272, ,109 Market value of purchased options/swaptions 2(c) Other assets 2(a,c) 63, , ,305 3,481 24,136 1,814 23,097 Total assets 418,345, ,790,833 1,057,122,522 2,937,580, ,905,246 5,616,841, ,074, ,949,141 10,389,929,984 5,115,021 9,866, ,926,109 Liabilities Cash owed to bank 3,199,276 1,645, ,909 2,381 Income distribution payable 2(a) 14, ,816 1,383 Payable for investments purchased 2(a) 1,180,838 4,463, ,452,225* 1,409,665 21,352,474 11,009,757 1,712,467 53,653 2,700,346 Payable for Fund shares redeemed 2(a) 1,600, , ,724 8,801,427 1,665,019 47,290,158 3,422, ,063 34,995,571 8, ,088 depreciation on: Open Futures contracts 2(c) 904, ,192 Open Forward foreign exchange contracts 2(c) 672, ,485 5,217,389 9,040, ,953 9,371,723 21,246 Market value of swaps 2(c) 9 Market value of written options/swaptions 2(c) 18,174 13,293 Other liabilities 4, 5, 6 629, ,579 1,016,506 5,081, ,704 13,278, , ,096 25,618, , ,491 Total liabilities 3,410,655 6,327, ,953,395 19,100,524 2,090,723 71,018,603 26,481,719 14,885,212 72,318,753 54,418 72,055 3,342,925 Total net assets 414,934, ,463, ,169,127 2,918,479, ,814,523 5,545,823, ,593, ,063,929 10,317,611,231 5,060,603 9,794, ,583,184 (1) New Fund launched, see Note 1, for further details. * Includes TBAs, see Note 2, for further details. 12 BlackRock Global Funds (BGF)

14 Three Year Summary of Net Asset Values as at 28 February 2013 Currency 28 February August August August 2010 ASEAN Leaders Fund Total net assets USD 57,876,884 33,417,600 Net asset value per: A Class non-distributing share USD D Class non-distributing share USD X Class non-distributing UK reporting fund share GBP Asia Pacific Equity Income Fund Total net assets USD 161,614,110 79,715,682 74,879,502 26,588,248 Net asset value per: A Class distributing (Q) (G) share USD 13.13* A Class distributing (Q) (G) share SGD hedged SGD 12.61* A Class distributing (S) share USD 14.06* A Class distributing (S) share HKD hedged HKD * A Class non-distributing share USD 14.66* A Class non-distributing UK reporting fund share GBP 11.73* C Class distributing (Q) (G) share USD 12.66* C Class distributing (Q) (G) share SGD hedged SGD 12.16* D Class distributing (Q) (G) share USD 13.30* D Class distributing (Q) (G) share SGD hedged SGD 12.76* D Class non-distributing share USD 14.87* E Class distributing (Q) (G) share EUR hedged EUR 10.04* E Class non-distributing share USD 14.54* Asian Dragon Fund Total net assets USD 741,748, ,847, ,653, ,236,043 Net asset value per: A Class non-distributing share USD A Class UK reporting fund share GBP B Class non-distributing share USD C Class non-distributing share USD D Class distributing (A) UK reporting fund share GBP D Class non-distributing share USD E Class non-distributing share USD Q Class non-distributing share USD X Class non-distributing share USD X Class UK reporting fund share GBP Asian Growth Leaders Fund (1) Total net assets USD 6,481,877 Net asset value per: A Class non-distributing share USD D Class non-distributing share USD E Class non-distributing share USD X Class non-distributing share USD Asian Local Bond Fund Total net assets USD 78,971,239 40,396,139 Net asset value per: A Class distributing (M) share USD A Class distributing (S) share USD A Class distributing (S) share HKD hedged HKD A Class non-distributing share USD D Class non-distributing share USD I Class non-distributing share USD X Class distributing (S) share USD X Class non-distributing share USD X Class non-distributing UK reporting fund share GBP * Dilution adjustment included, see Note 2(g) for further details. (1) New Fund launched, see Note 1, for further details. Unaudited Interim Report and Accounts 13

15 Three Year Summary of Net Asset Values as at 28 February 2013 continued Currency 28 February August August August 2010 Asian Tiger Bond Fund Total net assets USD 938,879, ,439, ,440, ,146,073 Net asset value per: A Class distributing (D) share USD * A Class distributing (M) share USD * A Class distributing (M) share AUD hedged AUD A Class distributing (M) share EUR hedged EUR A Class distributing (M) share HKD hedged HKD * A Class distributing (M) share NZD hedged NZD A Class distributing (M) share SGD hedged SGD A Class distributing (R) share AUD hedged AUD A Class distributing (S) share USD A Class distributing (S) share HKD hedged HKD A Class non-distributing share USD * A Class non-distributing share SGD hedged SGD B Class distributing (D) share USD * B Class non-distributing share USD * C Class distributing (D) share USD * C Class non-distributing share USD * D Class distributing (M) share USD D Class distributing (M) share HKD hedged HKD D Class distributing (S) share USD D Class non-distributing share USD E Class non-distributing share USD * Q Class distributing (D) share USD * Q Class non-distributing share USD * China Fund Total net assets USD 1,422,971, ,219, ,402, ,172,228 Net asset value per: A Class non-distributing share USD A Class non-distributing share EUR hedged EUR A Class non-distributing share HKD unhedged HKD A Class non-distributing share SGD hedged SGD A Class UK reporting fund share GBP hedged GBP B Class non-distributing share USD B Class non-distributing share EUR hedged EUR B Class non-distributing share SGD hedged SGD C Class non-distributing share USD C Class non-distributing share SGD hedged SGD D Class distributing (A) UK reporting fund share GBP hedged GBP D Class non-distributing share USD D Class non-distributing share EUR hedged EUR D Class non-distributing share HKD unhedged HKD D Class non-distributing share SGD hedged SGD D Class non-distributing UK reporting fund share GBP hedged GBP 7.80 E Class non-distributing share EUR hedged EUR I Class non-distributing share USD X Class non-distributing share USD * Dilution adjustment included, see Note 2(g) for further details. 14 BlackRock Global Funds (BGF)

16 Three Year Summary of Net Asset Values as at 28 February 2013 continued Currency 28 February August August August 2010 Continental European Flexible Fund Total net assets EUR 1,297,227, ,211, ,363, ,160,576 Net asset value per: A Class distributing (A) share EUR A Class non-distributing share EUR A Class UK reporting fund share GBP A Class UK reporting fund share GBP hedged GBP B Class non-distributing share EUR C Class non-distributing share EUR D Class distributing (A) UK reporting fund share GBP D Class distributing (A) UK reporting fund share GBP hedged GBP D Class non-distributing share EUR D Class non-distributing share USD hedged USD D Class non-distributing UK reporting fund share GBP hedged GBP E Class non-distributing share EUR I Class non-distributing share EUR 9.94 X Class non-distributing share EUR X Class UK reporting fund share GBP Emerging Europe Fund Total net assets EUR 1,624,774,817 1,673,071,156 1,867,600,524 2,247,833,875 Net asset value per: A Class distributing (A) share EUR A Class non-distributing share EUR A Class non-distributing share SGD hedged SGD A Class UK reporting fund share GBP B Class non-distributing share EUR C Class non-distributing share EUR D Class distributing (A) UK reporting fund share GBP D Class non-distributing share EUR D Class non-distributing UK reporting fund share GBP hedged GBP E Class non-distributing share EUR J Class non-distributing share EUR Q Class non-distributing share EUR X Class non-distributing share EUR X Class UK reporting fund share GBP Emerging Markets Bond Fund Total net assets USD 1,281,507,040 1,134,771, ,596, ,612,438 Net asset value per: A Class distributing (D) share USD * 9.01 A Class distributing (M) share USD * 9.31 A Class distributing (R) share AUD hedged AUD A Class distributing (S) share USD A Class distributing (S) share HKD hedged HKD A Class non-distributing share USD * A Class non-distributing share EUR hedged EUR * B Class distributing (D) share USD * 9.02 B Class non-distributing share USD * C Class distributing (D) share USD * 9.01 C Class non-distributing share USD * D Class distributing (M) share USD D Class non-distributing share USD * D Class non-distributing share EUR hedged EUR E Class non-distributing share USD * Q Class distributing (D) share USD * 9.01 X Class non-distributing share USD * X Class non-distributing share EUR hedged EUR * X Class non-distributing share JPY hedged JPY 1,201 1,155 1,023* * Dilution adjustment included, see Note 2(g) for further details. Unaudited Interim Report and Accounts 15