Semi-Annual Report BlackRock Premier Funds

Transcription

1 Semi-Annual Report BlackRock Premier Funds ishares Hong Kong Equity Index Fund (formerly known as BlackRock Hong Kong Equity Index Fund) BlackRock China A-Shares Fund ishares Asia ex-japan Equity Index Fund (formerly known as BlackRock Asia ex-japan Equity Index Fund) Horizon Aggressive Growth Fund Horizon Growth Fund Horizon Income Fund Japan Multi-Income Equity Fund Asian Enhanced Equity Yield Fund Asian Growth Leaders Fund Asia Pacific Equity Income Fund China Fund ishares World Equity Index Fund (formerly known as BlackRock World Equity Index Fund) ishares World Government Bond Index Fund (formerly known as BlackRock World Government Bond Index Fund) (Sub-Funds of BlackRock Premier Funds) For the period from 1 October 2017 to 31 March 2018 (Unaudited)

2 Contents Condensed Statement of Financial Position (unaudited) 2 Notes to the Condensed Financial Statements (unaudited) 6 Investment Portfolio (unaudited) 13 ishares Hong Kong Equity Index Fund (formerly known as BlackRock Hong Kong Equity Index Fund) BlackRock China A-Shares Fund ishares Asia ex-japan Equity Index Fund (formerly known as BlackRock Asia ex-japan Equity Index Fund) Horizon Aggressive Growth Fund Horizon Growth Fund Horizon Income Fund Japan Multi-Income Equity Fund Asian Enhanced Equity Yield Fund Asian Growth Leaders Fund Asia Pacific Equity Income Fund China Fund ishares World Equity Index Fund (formerly known as BlackRock World Equity Index Fund) ishares World Government Bond Index Fund (formerly known as BlackRock World Government Bond Index Fund) Statement of Movements in Investment Portfolio (unaudited) 69 ishares Hong Kong Equity Index Fund (formerly known as BlackRock Hong Kong Equity Index Fund) BlackRock China A-Shares Fund ishares Asia ex-japan Equity Index Fund (formerly known as BlackRock Asia ex-japan Equity Index Fund) Horizon Aggressive Growth Fund Horizon Growth Fund Horizon Income Fund Japan Multi-Income Equity Fund Asian Enhanced Equity Yield Fund Asian Growth Leaders Fund Asia Pacific Equity Income Fund China Fund ishares World Equity Index Fund (formerly known as BlackRock World Equity Index Fund) ishares World Government Bond Index Fund (formerly known as BlackRock World Government Bond Index Fund) Performance Table (unaudited) 78 Management and Administration 82 Semi-Annual Report 1

3 Condensed Statement of Financial Position (unaudited) As at 31 March 2018 ishares Hong Kong Equity Index Fund (formerly known as BlackRock Hong Kong Equity Index Fund) BlackRock China A-Shares Fund 31 March 2018 (Unaudited) 30 September 2017 (Audited) 31 March 2018 (Unaudited) 30 September 2017 (Audited) Assets Non-current assets Deposit reserve 47, ,320 Current assets Financial assets at fair value through profit or loss 1,298,090,659 1,148,647,541 48,192,797 56,308,343 Amounts due from brokers 473,957 Amounts receivable on subscription 4,694,632 4,040,434 Dividend receivable 3,110,133 2,457,256 Prepayments and other accounts receivable 94,090 Margin accounts 78,592 Bank balances 17,724,870 28,514,169 1,077, ,524 Total assets 1,323,698,886 1,183,753,490 49,318,437 58,142,144 Liabilities Current liabilities Financial liabilities at fair value through profit or loss 140,050 10,200 Administration fee payable 114,263 96,754 4,323 4,764 Amounts due to brokers 2 547,853 Amounts payable on redemption 14,038,484 6,724,532 Management fee payable 354, ,721 14,955 12,717 Other accounts payable and accruals 23,915 4, Overdraft on margin accounts 97,550 Liabilities (excluding net assets attributable to unitholders) 14,671,214 7,255,149 19, ,554 Net assets attributable to unitholders 1,309,027,672 1,176,498,341 49,299,029 57,576,590 ishares Asia ex-japan Equity Index Fund (formerly known as BlackRock Asia ex-japan Equity Index Fund) Horizon Aggressive Growth Fund 31 March 2018 (Unaudited) 30 September 2017 (Audited) 31 March 2018 (Unaudited) 30 September 2017 (Audited) Assets Current assets Financial assets at fair value through profit or loss 139,492, ,419,313 1,324,343 1,251,391 Amounts due from brokers 509 Amounts receivable on subscription 781 Dividend receivable 364, ,193 Prepayments and other accounts receivable 12,285 16, Margin accounts 3,829 Bank balances 243,895 1,364,133 13,965 6,125 Total assets 140,116, ,949,211 1,339,197 1,257,611 Liabilities Current liabilities Financial liabilities at fair value through profit or loss 8,500 2,490 Administration fee payable 14,475 12, Amounts due to brokers 509 Amounts payable on redemption 2,236 Distributor fee payable Management fee payable Other accounts payable and accruals 3,178 1,708 3 Overdraft on margin accounts 14,406 3,267 Liabilities (excluding net assets attributable to unitholders) 40,610 20,720 2, Net assets attributable to unitholders 140,076, ,928,491 1,336,638 1,257,287 The accompanying notes form part of these condensed financial statements. 2 BlackRock Premier Funds

4 Condensed Statement of Financial Position (unaudited) (continued) As at 31 March 2018 Horizon Growth Fund Horizon Income Fund 31 March 2018 (Unaudited) 30 September 2017 (Audited) 31 March 2018 (Unaudited) 30 September 2017 (Audited) Assets Current assets Financial assets at fair value through profit or loss 2,988,243 2,854,471 25,789,414 23,232,300 Amounts due from brokers 3,613, ,802 Amounts receivable on subscription 1, ,948 Dividend receivable 52,371 63,770 Prepayments and other accounts receivable ,472 15,913 Bank balances 11,877 26, ,162 2,100,213 Total assets 3,001,499 2,881,645 29,705,002 25,571,946 Liabilities Current liabilities Financial liabilities at fair value through profit or loss 23,269 84,417 Administration fee payable ,855 2,245 Amounts due to brokers 3,540,086 1,966,633 Amounts payable on redemption 3, ,697 Distributions payable 1,629 1, ,190 92,696 Management fee payable 1,171 1,068 21,960 17,270 Other accounts payable and accruals ,641 1,554 Liabilities (excluding net assets attributable to unitholders) 6,919 3,554 3,669,001 2,248,512 Net assets attributable to unitholders 2,994,580 2,878,091 26,006,001 23,323,434 Japan Multi-Income Equity Fund Asian Enhanced Equity Yield Fund 31 March 2018 (Unaudited) JPY 30 September 2017 (Audited) JPY 31 March 2018 (Unaudited) 30 September 2017 (Audited) Assets Current assets Financial assets at fair value through profit or loss 192 3,467,870,684 22,246,315 20,727,069 Amounts due from brokers 1,162, ,483 Amounts receivable on subscription Dividend receivable 14,597,064 25,778,482 44,576 52,272 Prepayments and other accounts receivable 289, ,442 Margin accounts 104,779 97,165 Bank balances 3,561,078,384 56,624,437 1,309,791 1,380,888 Total assets 3,575,965,371 3,550,711,045 24,868,155 22,541,877 Liabilities Current liabilities Financial liabilities at fair value through profit or loss 5,317 17,919,719 9,204 3,572 Administration fee payable 398, ,814 3,027 2,633 Amounts due to brokers 1,292, ,538 Amounts payable on redemption 3,394,706,287 Distributions payable 17,390 10,776 10,457 Management fee payable 2,155,301 2,147,089 2,409 1,487 Other accounts payable and accruals 61,258 25,216 8,244 9,213 Overdraft on margin accounts 12,870 4,184 Liabilities (excluding net assets attributable to unitholders) 3,397,326,871 20,481,228 1,338, ,084 Net assets attributable to unitholders 178,638,500 3,530,229,817 23,529,519 21,959,793 The accompanying notes form part of these condensed financial statements. Semi-Annual Report 3

5 Condensed Statement of Financial Position (unaudited) (continued) As at 31 March 2018 Asian Growth Leaders Fund Asia Pacific Equity Income Fund 31 March 2018 (Unaudited) 30 September 2017 (Audited) 31 March 2018 (Unaudited) 30 September 2017 (Audited) Assets Current assets Financial assets at fair value through profit or loss 1,368,546 1,257,508 1,249,156 1,164,831 Dividend receivable 2,904 2,865 Prepayments and other accounts receivable 5 Bank balances 559 1, Total assets 1,369,105 1,258,540 1,252,589 1,168,318 Liabilities Current liabilities Financial liabilities at fair value through profit or loss Administration fee payable Distributions payable Management fee payable Other accounts payable and accruals 11 3 Liabilities (excluding net assets attributable to unitholders) Net assets attributable to unitholders 1,368,923 1,258,299 1,252,362 1,167,966 China Fund ishares World Equity Index Fund (formerly known as BlackRock World Equity Index Fund) 31 March 2018 (Unaudited) 30 September 2017 (Audited) 31 March 2018 (Unaudited) 30 September 2017 (Audited) Assets Current assets Financial assets at fair value through profit or loss 1,394,807 1,287, ,721, ,486,415 Amounts due from brokers 2,493 Amounts receivable on subscription 5,435,867 7,855,217 Dividend receivable 1,286, ,614 Prepayments and other accounts receivable 5 13,807 5,963 Margin accounts 1,135,550 Bank balances 536 1,013 33,327,741 16,497,970 Total assets 1,395,343 1,288, ,923, ,439,179 Liabilities Current liabilities Financial liabilities at fair value through profit or loss ,283 Administration fee payable ,115 40,965 Amounts due to brokers 2,501 Amounts payable on redemption 2,011, ,307 Management fee payable Other accounts payable and accruals 23,263 49,676 Overdraft on margin accounts 2, ,349 Liabilities (excluding net assets attributable to unitholders) ,923, ,300 Net assets attributable to unitholders 1,395,154 1,287, ,999, ,799,879 The accompanying notes form part of these condensed financial statements. 4 BlackRock Premier Funds

6 Condensed Statement of Financial Position (unaudited) (continued) As at 31 March 2018 ishares World Government Bond Index Fund (formerly known as BlackRock World Government Bond Index Fund) 31 March 2018 (Unaudited) 30 September 2017 (Audited) Assets Current assets Financial assets at fair value through profit or loss 1,283,647, ,735,560 Amounts due from brokers 22,895,920 23,715,201 Amounts receivable on subscription 2,692,486 6,435,268 Bank balances 3,261,420 2,713,554 Total assets 1,312,497, ,599,583 Liabilities Current liabilities Financial liabilities at fair value through profit or loss 10,591,078 2,823,075 Administration fee payable 9,992,187 59,527 Amounts due to brokers 462,757 33,499,208 Amounts payable on redemption 5,293, ,568 Management fee payable 10,447 2 Other accounts payable and accruals 59,153 60,465 Liabilities (excluding net assets attributable to unitholders) 26,409,406 36,869,845 Net assets attributable to unitholders 1,286,087, ,729,738 The accompanying notes form part of these condensed financial statements. Semi-Annual Report 5

7 Notes to the Condensed Financial Statements (unaudited) 1. The Trust BlackRock Premier Funds (the Trust ) is an umbrella unit trust established under the laws of Hong Kong, by a Trust Deed dated 19 July 2013, as amended from time to time, between BlackRock Asset Management North Asia Limited (the Manager ) as manager and Cititrust Limited (the Trustee ) as trustee. As at 31 March 2018, the following sub-funds (each a separate sub-fund of the Trust and referred to individually or collectively as the Sub-Fund(s) ) have been established under the Trust: 1. ishares Hong Kong Equity Index Fund (formerly known as BlackRock Hong Kong Equity Index Fund) 2. BlackRock China A-Shares Fund 3. ishares Asia ex-japan Equity Index Fund (formerly known as BlackRock Asia ex-japan Equity Index Fund) 4. Horizon Aggressive Growth Fund 5. Horizon Growth Fund 6. Horizon Income Fund 7. Japan Multi-Income Equity Fund 8. Asian Enhanced Equity Yield Fund 9. Asian Growth Leaders Fund 10. Asia Pacific Equity Income Fund 11. China Fund 12. ishares World Equity Index Fund (formerly known as BlackRock World Equity Index Fund) 13. ishares World Government Bond Index Fund (formerly known as BlackRock World Government Bond Index Fund) All of the above Sub-Funds have been authorised by the Securities and Futures Commission of Hong Kong (the SFC ) pursuant to section 104(1) of the Securities and Futures Ordinance. The following Sub-Funds have commenced operations prior to 31 March 2018: Name of sub-fund ishares Hong Kong Equity Index Fund (formerly known as BlackRock Hong Kong Equity Index Fund) Date of commencement of operations 1 August 2013 BlackRock China A-Shares Fund 22 August 2013 ishares Asia ex-japan Equity Index Fund (formerly known as BlackRock Asia ex-japan Equity Index Fund) 8 October 2014 Horizon Aggressive Growth Fund 28 May 2015 Horizon Growth Fund 28 May 2015 Horizon Income Fund 10 August 2015 Japan Multi-Income Equity Fund 8 October 2015 Asian Enhanced Equity Yield Fund 27 January 2016 Asian Growth Leaders Fund 14 December 2016 Name of sub-fund Date of commencement of operations Asia Pacific Equity Income Fund 14 December 2016 China Fund 14 December 2016 ishares World Equity Index Fund (formerly known as BlackRock World Equity Index Fund) ishares World Government Bond Index Fund (formerly known as BlackRock World Government Bond Index Fund) Objectives 23 March March 2017 ishares Hong Kong Equity Index Fund (formerly known as BlackRock Hong Kong Equity Index Fund) The investment objective of the Sub-Fund is to provide investment results that, before fees and expenses, closely track the performance of the FTSE MPF Hong Kong Index ( unhedged total return), the Sub-Fund s underlying index. BlackRock China A-Shares Fund The investment objective of the Sub-Fund is to achieve longterm capital growth by primarily investing in equity securities of companies listed in the People s Republic of China ( PRC ). ishares Asia ex-japan Equity Index Fund (formerly known as BlackRock Asia ex-japan Equity Index Fund) The investment objective of the Sub-Fund is to provide investment results that, before fees and expenses, closely track the performance of the FTSE MPF Asia Pacific ex-japan, Australia & New Zealand Index ( hedged total return), the Sub-Fund s underlying index. Horizon Aggressive Growth Fund The investment objective of the Sub-Fund is to deliver a total return, which is a combination of capital growth and income, while maintaining a target level of portfolio risk. Horizon Growth Fund The investment objective of the Sub-Fund is to deliver a total return, which is a combination of capital growth and income, while maintaining a target level of portfolio risk. Horizon Income Fund The investment objective of the Sub-Fund is to provide a sustainable level of income, which primarily comes from income generated from the underlying investments and also from moderate medium to long-term capital growth, within a target level of portfolio risk measured over the long term. Japan Multi-Income Equity Fund The investment objective of the Sub-Fund is to achieve longterm capital growth and an above average income. 6 BlackRock Premier Funds

8 Notes to the Condensed Financial Statements (unaudited) (continued) Asian Enhanced Equity Yield Fund The investment objective of the Sub-Fund is to generate an above average income for investors. The Sub-Fund invests in Asia Pacific, excluding Japan, with no prescribed country limits. The Sub-Fund may make use of derivatives in a way that is consistent with its investment objective in order to generate additional income or gains. Asian Growth Leaders Fund The Sub-Fund is a feeder fund investing all or substantially all of its assets in the Asian Growth Leaders Fund ( Underlying Scheme ), a sub-fund under BlackRock Global Funds ( BGF ), a public limited company (société anonyme) established under the laws of the Grand Duchy of Luxembourg as an open ended variable capital investment company (société d investissement à capital variable) authorised by the Commission de Surveillance du Secteur Financier. The Underlying Scheme is authorised by the SFC*. The investment objective of the Underlying Scheme is to maximise total return. Asia Pacific Equity Income Fund The Sub-Fund is a feeder fund investing all or substantially all of its assets in the Asia Pacific Equity Income Fund ( Underlying Scheme ), a sub-fund under BGF, a public limited company (société anonyme) established under the laws of the Grand Duchy of Luxembourg as an open ended variable capital investment company (société d investissement à capital variable) authorised by the Commission de Surveillance du Secteur Financier. The Underlying Scheme is authorised by the SFC*. The investment objective of the Underlying Scheme is to achieve an above average income without sacrificing long term capital growth. China Fund The Sub-Fund is a feeder fund investing all or substantially all of its assets in the China Fund ( Underlying Scheme ), a sub-fund under BGF, a public limited company (société anonyme) established under the laws of the Grand Duchy of Luxembourg as an open ended variable capital investment company (société d investissement à capital variable) authorised by the Commission de Surveillance du Secteur Financier. The Underlying Scheme is authorised by the SFC*. The investment objective of the Underlying Scheme is to maximise total return. ishares World Equity Index Fund (formerly known as BlackRock World Equity Index Fund) The investment objective of the Sub-Fund is to provide investment results that, before fees and expenses, closely track the performance of the FTSE MPF All-World Index ( unhedged total return), the Sub-Fund s underlying index. ishares World Government Bond Index Fund (formerly known as BlackRock World Government Bond Index Fund) The investment objective of the Sub-Fund is to provide investment results that, before fees and expenses, closely track the performance of the FTSE MPF World Government Bond Index ( hedged total return), the Sub-Fund s underlying index. *Authorization by the SFC is not a recommendation or endorsement of the underlying scheme nor does it guarantee the commercial merits of the underlying scheme or its performance. It does not mean the underlying scheme is suitable for all investors nor is it an endorsement of its suitability for any particular investor or class of investors. 2. Summary of Significant Accounting Policies The condensed interim financial statements are unaudited and are prepared in accordance to the relevant disclosure provisions of the Trust Deed and the relevant disclosure provisions specified in Appendix E of the Code on Unit Trusts and Mutual Funds of the SFC. The accounting policies applied are consistent with those of the annual financial statements for the year ended 30 September 2017, as described in the annual financial statements. 3. Critical Accounting Estimates and Judgments The preparation of financial statements in conformity with IFRS requires the Management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Management makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial period are outlined below. (a) Functional currency Items included in the financial statements are measured using the currency of the primary economic environment in which the Sub-Funds operate ( the functional currency ). ishares Hong Kong Equity Index Fund (formerly known as BlackRock Hong Kong Equity Index Fund), ishares Asia ex-japan Equity Index Fund (formerly known as BlackRock Asia ex-japan Equity Index Fund), ishares World Equity Index Fund (formerly known as BlackRock World Equity Index Fund) and ishares World Government Bond Index Fund (formerly known as BlackRock World Government Bond Index Fund) The Management considers the Hong Kong Dollar ( ) as the currency that most faithfully represents the economic effect of the underlying transactions, events and conditions. The is the currency in which these Sub-Funds measure their performance and report their results, as well as the currency in which they determine the net asset value (the NAV ) per unit at the time of issue or redemption. The financial statements of these four Sub-Funds are presented in which is the Sub-Funds functional and presentation currency. Semi-Annual Report 7

9 Notes to the Condensed Financial Statements (unaudited) (continued) Japan Multi-Income Equity Fund The Management considers the Japanese Yen ( JPY ) as the currency that most faithfully represents the economic effect of the underlying transactions, events and conditions. The JPY is the currency in which this Sub-Fund measures its performance and reports its results, as well as the currency in which it determines the NAV per unit at the time of issue or redemption. The financial statements of this Sub-Fund is presented in JPY which is the Sub-Fund s functional and presentation currency. BlackRock China A-Shares Fund, Horizon Aggressive Growth Fund, Horizon Growth Fund, Horizon Income Fund, Asian Enhanced Equity Yield Fund, Asian Growth Leaders Fund, Asia Pacific Equity Income Fund and China Fund The Management considers the United States Dollar ( ) as the currency that most faithfully represents the economic effect of the underlying transactions, events and conditions. The is the currency in which these Sub-Funds measure their performance and report their results. The financial statements of these eight Sub-Funds are presented in which is the Sub-Funds functional and presentation currency. (b) Fair value of securities not quoted in an active market The fair value of such securities not quoted in an active market may be determined by the Management using reputable pricing sources (such as pricing agencies). Broker quotes as obtained from the pricing sources may be indicative and not executable or binding. The Management would exercise judgment and estimates on the quantity and quality of pricing sources used. Where no market data is available, the Management may value positions using their own models, which are usually based on valuation methods and techniques generally recognised as standard within the industry. The inputs into these models are primarily earning multiples and discounted cash flows. The models used to determine fair values are validated and periodically reviewed by experienced personnel at the Manager. Models use observable data, to the extent practicable. However, areas such as credit risk (both own and counterparty), volatilities and correlations require Management to make estimates. Changes in assumptions about these factors could affect the reported fair value of financial instruments. The determination of what constitutes observable requires significant judgment by the Management. The Management considers observable data 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. (c) Taxation In preparing these condensed financial statements, the Management has made certain assumptions and used various estimates concerning the tax exposure which is dependent on what might happen in the future. The resulting accounting estimates may not equal the related actual results. ishares Hong Kong Equity Index Fund (formerly known as BlackRock Hong Kong Equity Index Fund), BlackRock China A-Shares Fund, ishares Asia ex-japan Equity Index Fund (formerly known as BlackRock Asia ex-japan Equity Index Fund) and Asian Enhanced Equity Yield Fund The Sub-Funds may invest in Chinese securities (H-shares, Red Chips and P Chips) listed on the Stock Exchange of Hong Kong. Under the PRC Corporate Income Tax Law, the Sub- Funds may be liable to pay PRC tax on the capital gains realised from the trading of these securities. However, no provision was made for taxation from such gains in the condensed financial statements as the Manager believes that the Sub-Funds can sustain a position for not filing a tax return based on the existing tax regulations and that the enforcement of such PRC tax on capital gains is not probable and/or not material. Horizon Aggressive Growth Fund, Horizon Growth Fund, Horizon Income Fund, Asian Growth Leaders Fund, Asia Pacific Equity Income Fund and China Fund These Sub-Funds may have investments in other underlying funds. The underlying funds themselves may or may not for accounting purposes provision for taxes on their investment income, where/if applicable. Any retrospective enforcement and/or changes in tax law relevant to the underlying funds in which these Sub-Funds invest may result in additional losses to these Sub-Funds, if or to the extent that such tax liabilities are not already accounted for by the underlying funds. BlackRock China A-Shares Fund and Asian Enhanced Equity Yield Fund The Sub-Funds invest directly in A-Shares of PRC listed companies through the Qualified Foreign Institutional Investor ( QFII ) program and/or Stock Connect. Under the PRC Corporate Income Tax Law, the Sub-Fund might be liable to pay PRC tax on the capital gains realised from the trading of these securities at 10% provided that the Sub-Fund does not have a PRC tax establishment or central management and control in the PRC. Via the release of Circular 79, Caishui [2014] No. 81 ( Circular 81 ) and Caishui [2016] No. 127 ( Circular 127 ) by the Ministry of Finance ( MOF ) in the PRC, the China Securities Regulatory Commission ( CSRC ), and the State Administration of Taxation ( SAT ) acting with State Council s approval, a temporary exemption from tax on capital gains derived from the trading of A-Shares was provided to (i) QFIIs/RQFIIs; and (ii) foreign investors trading in A-Shares via Stock Connect respectively. However, Circular 79 did also state that any gains realized by QFIIs/RQFIIs prior to 17 November 2014 would be subject to tax in accordance with law. 8 BlackRock Premier Funds

10 Notes to the Condensed Financial Statements (unaudited) (continued) Pursuant to Circulars 79 and 81, the Manager realigned the provisioning policy of the Sub-Fund in respect of direct A-Shares investments. The Sub-Fund no longer make provisions for gross unrealised capital gains or for gross realised capital gains on or after 17 November The Sub-Fund filed for relief under the respective Double Tax Agreement ( DTA ) for the period up to 17 November 2014 with the PRC tax authorities and was subsequently approved. 4. Distributions During the period ended 31 March 2018, Horizon Income Fund, Japan Multi-Income Equity Fund, Asian Enhanced Equity Yield Fund and Asia Pacific Equity Income Fund made distribution to unitholders. There were no distributions made for all other Sub-Funds. During the period ended 31 March 2017, Horizon Income Fund, Japan Multi-Income Equity Fund, Asian Enhanced Equity Yield Fund and Asia Pacific Equity Income Fund made distribution to unitholders. There were no distributions made for all other Sub-Funds. The following table summarises the distributions made by the four Sub-Funds for the period ended 31 March 2018 and The last distribution made by Japan Multi-Income Equity Fund was on 31 December Horizon Income Fund For the period ended 31 March 2018 Ex-date Payment date Type Entitled units Distribution per unit Total distribution amount Class A8 (AUD) 29 March April 2018 Monthly 433, , February March 2018 Monthly 384, , January February 2018 Monthly 369, , December January 2018 Monthly 365, , December December 2017 Bonus 365, , November December 2017 Monthly 358, , October November 2017 Monthly 370, ,099 Class A6 (CAD) 29 March April 2018 Monthly 5, February March 2018 Monthly 5, Class A6 (NZD) 29 March April 2018 Monthly 5, February March 2018 Monthly 5, Class A8 (CNH) 29 March April 2018 Monthly 482, , February March 2018 Monthly 446, , January February 2018 Monthly 440, , December January 2018 Monthly 424, , December December 2017 Bonus 424, , November December 2017 Monthly 449, , October November 2017 Monthly 414, , ,025 Ex-date Payment date Type Entitled units Distribution per unit Total distribution amount For the period ended 31 March 2017 Class A6 () 29 March April 2018 Monthly 726, , February March 2018 Monthly 736, , January February 2018 Monthly 710, , December January 2018 Monthly 692, , December December 2017 Bonus 692, , November December 2017 Monthly 686, , October November 2017 Monthly 698, ,395 Class A6 () 29 March April 2018 Monthly 549, , February March 2018 Monthly 522, , January February 2018 Monthly 524, , December January 2018 Monthly 485, , December December 2017 Bonus 485, , November December 2017 Monthly 521, , October November 2017 Monthly 513, ,837 Ex-date Payment date Type Entitled units Distribution per unit Total distribution amount Class A6 () 31 March April 2017 Monthly 907, , March March 2017 Bonus 904, , February March 2017 Monthly 857, , January February 2017 Monthly 844, , December January 2017 Monthly 777, , December December 2016 Bonus 797, , November December 2016 Monthly 826, , October November 2016 Monthly 870, ,721 Class A6 () 31 March April 2017 Monthly 496, , March March 2017 Bonus 495, , February March 2017 Monthly 519, , January February 2017 Monthly 583, , December January 2017 Monthly 549, , December December 2016 Bonus 549, , November December 2016 Monthly 551, , October November 2016 Monthly 547, ,188 Semi-Annual Report 9

11 Notes to the Condensed Financial Statements (unaudited) (continued) Horizon Income Fund (continued) For the period ended 31 March 2017 Ex-date Payment date Type Entitled units Distribution per unit Total distribution amount Ex-date Payment date Type Entitled units Distribution per unit Total distribution amount Class A8 (AUD) 31 March April 2017 Monthly 408, , March March 2017 Bonus 394, , February March 2017 Monthly 406, , January February 2017 Monthly 426, , December January 2017 Monthly 456, , December December 2016 Bonus 456, , November December 2016 Monthly 394, , October November 2016 Monthly 427, ,492 Class A8 (CNH) 31 March April 2017 Monthly 160, , March March 2017 Bonus 160, , February March 2017 Monthly 151, , January February 2017 Monthly 175, , December January 2017 Monthly 174, , December December 2016 Bonus 173, , November December 2016 Monthly 181, , October November 2016 Monthly 184, ,466 Japan Multi-Income Equity Fund For the period ended 31 March 2018 Ex-date Payment date Type Entitled units Distribution per unit JPY 509,935 Total distribution amount Class A6 () 29 December January 2018 Monthly , November December 2017 Monthly , October November 2017 Monthly ,179 Class A6 () 29 December January 2018 Monthly , November December 2017 Monthly , October November 2017 Monthly ,491 Class A8 (AUD) 29 December January 2018 Monthly , November December 2017 Monthly , October November 2017 Monthly ,608 Class A8 (CNH) 29 December January 2018 Monthly , November December 2017 Monthly , October November 2017 Monthly ,849 JPY 45,280 Class A6 () 31 March April 2017 Monthly , February March 2017 Monthly , January February 2017 Monthly , December January 2017 Monthly , November December 2016 Monthly , October November 2016 Monthly ,159 Class A6 () 31 March April 2017 Monthly , February March 2017 Monthly , January February 2017 Monthly , December January 2017 Monthly , November December 2016 Monthly , October November 2016 Monthly ,468 Class A8 (AUD) 31 March April 2017 Monthly , February March 2017 Monthly , January February 2017 Monthly , December January 2017 Monthly , November December 2016 Monthly , October November 2016 Monthly ,294 Class A8 (CNH) 31 March April 2017 Monthly , February March 2017 Monthly , January February 2017 Monthly , December January 2017 Monthly , November December 2016 Monthly , October November 2016 Monthly ,696 Asian Enhanced Equity Yield Fund For the period ended 31 March 2018 Ex-date Payment date Type Entitled units JPY Distribution per unit JPY 94,497 Total distribution amount Class A6 () 29 March April 2018 Monthly 149, , February March 2018 Monthly 143, , January February 2018 Monthly 173, , December January 2018 Monthly 220, , November December 2017 Monthly 170, , October November 2017 Monthly 162, ,073 Class A6 () 29 March April 2018 Monthly February March 2018 Monthly January February 2018 Monthly December January 2018 Monthly November December 2017 Monthly October November 2017 Monthly BlackRock Premier Funds

12 Notes to the Condensed Financial Statements (unaudited) (continued) Asian Enhanced Equity Yield Fund (continued) Ex-date Payment date Type Entitled units Distribution per unit Total distribution amount Class A8 (AUD) 29 March April 2018 Monthly February March 2018 Monthly January February 2018 Monthly December January 2018 Monthly November December 2017 Monthly October November 2017 Monthly Class A8 (CAD) 29 March April 2018 Monthly February March 2018 Monthly January February 2018 Monthly December January 2018 Monthly November December 2017 Monthly October November 2017 Monthly Class A8 (NZD) 29 March April 2018 Monthly February March 2018 Monthly January February 2018 Monthly December January 2018 Monthly November December 2017 Monthly October November 2017 Monthly Class A8 (CNH) 29 March April 2018 Monthly February March 2018 Monthly January February 2018 Monthly December January 2018 Monthly November December 2017 Monthly October November 2017 Monthly ,937 Ex-date Payment date Type Entitled units Distribution per unit Total distribution amount Class A8 (AUD) 31 March April 2017 Monthly February March 2017 Monthly January February 2017 Monthly December January 2017 Monthly November December 2016 Monthly October November 2016 Monthly Class A8 (CAD) 31 March April 2017 Monthly February March 2017 Monthly January February 2017 Monthly December January 2017 Monthly November December 2016 Monthly October November 2016 Monthly Class A8 (NZD) 31 March April 2017 Monthly February March 2017 Monthly January February 2017 Monthly December January 2017 Monthly November December 2016 Monthly October November 2016 Monthly Class A8 (CNH) 31 March April 2017 Monthly February March 2017 Monthly January February 2017 Monthly December January 2017 Monthly November December 2016 Monthly October November 2016 Monthly Asia Pacific Equity Income Fund For the period ended 31 March ,302 For the period ended 31 March 2017 Ex-date Payment date Type Entitled units Distribution per unit Total distribution amount Ex-date Payment date Type Entitled units Distribution per unit Total distribution amount Class A6 () 31 March April 2017 Monthly February March 2017 Monthly January February 2017 Monthly December January 2017 Monthly November December 2016 Monthly October November 2016 Monthly Class A6 () 31 March April 2017 Monthly February March 2017 Monthly January February 2017 Monthly December January 2017 Monthly November December 2016 Monthly October November 2016 Monthly Class A8 (CNH) 29 March April 2018 Monthly February March 2018 Monthly January February 2018 Monthly December January 2018 Monthly November December 2017 Monthly October November 2017 Monthly For the period ended 31 March 2017 Ex-date Payment date Type Entitled units Distribution per unit 218 Total distribution amount Class A8 (CNH) 31 March April 2017 Monthly February March 2017 Monthly Semi-Annual Report 11

13 Notes to the Condensed Financial Statements (unaudited) (continued) 5. Investment Limitation and Prohibitions Under the SFC Code Pursuant to the SFC Code, each of the ishares Hong Kong Equity Index Fund (formerly known as BlackRock Hong Kong Equity Index Fund), ishares Asia ex-japan Equity Index Fund (formerly known as BlackRock Asia ex-japan Equity Index Fund), ishares World Equity Index Fund (formerly known as BlackRock World Equity Index Fund) and ishares World Government Bond Index Fund (formerly known as BlackRock World Government Bond Index Fund) may: (a) invest more than 10% of its net assets in constituent securities issued by a single issuer provided that: (i) It is limited to any constituent securities that each accounts for more than 10% of the weighting of the underlying index; and (ii) The Sub-Fund s holding of any such constituent securities may not exceed their respective weightings in the underlying index, except where weightings are exceeded as a result of changes in the composition of the underlying index and where the excess is only transitional and temporary in nature. With respect to the other Sub-Funds, which are not index funds, the SFC Code requires that the value of the Sub-Fund s holding of securities issued by any single issuer may not exceed 10% of the total net asset value of the respective Sub-Fund. As at 31 March 2018 and 30 September 2017, the Sub-Funds which are index funds did not have any constituent securities that accounted for more than 10% of the Sub-Funds net asset values. The Manager and Trustee have confirmed that the Sub-Funds have complied with these limits during the period/year ended 31 March 2018 and 30 September Subsequent Events On 28 February 2018, the Manager issued a notice of the termination of Horizon Growth Fund and Horizon Aggressive Growth Fund on 31 May BlackRock Premier Funds

14 ishares Hong Kong Equity Index Fund (formerly known as BlackRock Hong Kong Equity Index Fund) Financial Assets at Through Profit or Loss (99.16%) Listed Equity Securities (98.11%) China (30.46%) 2,245,803 Agricultural Bank of China Ltd 10,016, ,356 Air China Ltd 1,743, ,282 Aluminum Corp of China Ltd 1,462, ,895 Angang Steel Co Ltd 711, ,426 Anhui Conch Cement Co Ltd 4,506, ,000 Anhui Expressway Co Ltd 204, ,880 Avichina Industry & Technology Co Ltd 1,298, ,000 Baic Motor Corp Ltd 1,154, ,670,153 Bank of China Ltd 28,148, ,035 Bank of Communications Co Ltd 4,200, ,064 BBMG Corp 722, ,012 Beijing Capital International Airport Co Ltd 1,675, ,000 Beijing Jingneng Clean Energy Co Ltd 244, ,000 Beijing North Star Co Ltd 113, ,214 BYD Co Ltd 3,685, ,000 Central China Securities Co Ltd 290, ,000 CGN Power Co Ltd 1,898, ,337 China Bluechemical Ltd 238, ,961 China Cinda Asset Management Co Ltd 2,385, ,666 China CITIC Bank Corp Ltd 3,916, ,527 China Coal Energy Co Ltd 686, ,309 China Communications Construction Co Ltd 3,178, ,770 China Communications Services Corp Ltd 1,260, ,830,740 China Construction Bank Corp 63,115, ,265 China Eastern Airlines Corp Ltd 702, ,906 China Everbright Bank Co Ltd 957, ,094 China Galaxy Securities Co Ltd 1,629, ,000 China Huarong Asset Management Co Ltd 2,864, ,400 China International Capital Corp Ltd 887, ,733 China International Marine Containers Group Co Ltd 425, ,470 China Life Insurance Co Ltd 14,093, ,767 China Longyuan Power Group Corp Ltd 1,780, ,125 China Machinery Engineering Corp 316, ,497 China Merchants Bank Co Ltd 10,657, ,600 China Merchants Securities Co Ltd 827, ,734 China Minsheng Banking Corp Ltd 3,706, ,875 China Molybdenum Co Ltd 2,035, ,295 China National Building Material Co Ltd 2,234, ,000 China National Materials Co Ltd 823, ,574 China Oilfield Services Ltd 1,290, ,134 China Pacific Insurance Group Co Ltd 7,948, ,236,818 China Petroleum & Chemical Corp 15,411, ,465 China Railway Construction Corp Ltd 1,308, ,118 China Railway Group Ltd 1,774, ,000 China Railway Signal & Communication Corp Ltd 761, ,000 China Reinsurance Group Corp 839, China (30.46%) Continued 298,012 China Shenhua Energy Co Ltd 5,811, ,719 China Southern Airlines Co Ltd 1,350, ,224,587 China Telecom Corp Ltd 4,237, ,077 China Vanke Co Ltd 4,298, ,472 Chongqing Rural Commercial Bank Co Ltd 1,643, ,400 CITIC Securities Co Ltd 3,635, ,740 COSCO Shipping Development Co Ltd 446, ,838 COSCO Shipping Energy Transportation Co Ltd 423, ,228 COSCO Shipping Co Ltd 837, ,276 CRRC Corp Ltd 2,363, ,000 CSC Financial Co Ltd 509, ,000 CSSC Offshore and Marine Engineering Group Co Ltd 176, ,600 Dalian Port PDA Co Ltd 157, ,167 Datang International Power Generation Co Ltd 533, ,000 Dongfang Electric Corp Ltd 116, ,295 Dongfeng Motor Group Co Ltd 2,298, ,000 Everbright Securities Co Ltd 200, ,200 Fuyao Glass Industry Group Co Ltd 1,367, ,400 GF Securities Co Ltd 1,995, ,832 Great Wall Motor Co Ltd 2,210, ,000 Guangshen Railway Co Ltd 538, ,129 Guangzhou Automobile Group Co Ltd 2,778, ,000 Guangzhou Baiyunshan Pharmaceutical Co Ltd 338, ,416 Guangzhou R&F Properties Co Ltd 1,789, ,800 Guotai Junan Securities Co Ltd 1,274, ,909 Haitong Securities Co Ltd 3,102, ,350 Huadian Fuxin Energy Corp Ltd 334, ,530 Huadian Power International Corp Ltd 400, ,086 Huaneng Power International Inc 1,902, ,555 Huaneng Renewables Corp Ltd 1,258, ,600 Huatai Securities Co Ltd 2,274, ,847,170 Industrial & Commercial Bank of China Ltd 46,081, ,813 Jiangsu Expressway Co Ltd 1,218, ,878 Jiangxi Copper Co Ltd 1,163, ,200 Legend Corp 809, ,670 Livzon Pharmaceutical Group Inc 484, ,188 Maanshan Iron & Steel Co Ltd 407, ,136 Metallurgical Corp of China Ltd 546, ,307 New China Life Insurance Co Ltd 2,789, ,400 Orient Securities Co Ltd/China 659, ,135 People s Insurance Co Group of China Ltd/The 2,727, ,823,119 Petrochina Co Ltd 9,826, ,959 PICC Property & Casualty Co Ltd 5,399, ,124 Ping An Insurance Group Co of China Ltd 34,882, ,000 Postal Savings Bank of China Co Ltd 2,529, ,800 Red Star Macalline Group Corp Ltd 356, ,000 Shandong Chenming Paper Ltd 424, ,420 Shandong Weigao Group Medical Polymer Co Ltd 755, ,745 Shanghai Electric Group Co Ltd 605, ,865 Shanghai Fosun Pharmaceutical Group Co Ltd 1,969, Semi-Annual Report 13

15 ishares Hong Kong Equity Index Fund (formerly known as BlackRock Hong Kong Equity Index Fund) (continued) China (30.46%) Continued 76,705 Shanghai Pharmaceuticals Holding Co Ltd 1,610, ,165 Shenzhen Expressway Co Ltd 544, ,000 Sichuan Expressway Co Ltd 144, ,691 Sinopec Engineering Group Co Ltd 911, ,000 Sinopec Oilfield Service Corp 174, ,497 Sinopec Shanghai Petrochemical Co Ltd 1,514, ,812 Sinopharm Group Co Ltd 3,529, ,339 Sinotrans Ltd 695, ,000 Tianjin Capital Environmental Protection Group Co Ltd 88, ,452 Travelsky Technology Ltd 2,012, ,308 Tsingtao Brewery Co Ltd 1,283, ,972 Weichai Power Co Ltd 1,486, ,000 Xinhua Winshare Publishing and Media Co Ltd 231, ,181 Xinjiang Goldwind Science & Technology Co Ltd 631, ,833 Yanzhou Coal Mining Co Ltd 1,698, ,500 Zhaojin Mining Industry Co Ltd 657, ,816 Zhejiang Expressway Co Ltd 919, ,400 Zhongan Online P&C Insurance Co Ltd 674, ,425 Zhuzhou CRRC Times Electric Co Ltd 1,650, ,957 Zijin Mining Group Co Ltd 1,758, ,678 Zoomlion Heavy Industry Science and Technology Co Ltd 317, ,762 ZTE Corp 1,884, Hong Kong (58.22%) 94,500 3Sbio Inc 1,670, ,481 AAC Technologies Inc 8,564, ,878 Agile Group Ltd 2,122, ,058,070 AIA Group Ltd 70,255, ,754 Alibaba Health Information Technology Ltd 903, ,060,000 Alibaba Pictures Group Ltd 1,081, ,143 Anta Sports Products Ltd 4,242, ,696 ASM Pacific Technology Ltd 2,925, ,290 Bank of East Asia Ltd/The 3,295, ,207 Beijing Enterprises Ltd 1,812, ,634 Beijing Enterprises Water Group Ltd 1,487, ,450 BOC Hong Kong Ltd 12,011, ,469 Bosideng International Ltd 118, ,271 Brightoil Petroleum Ltd 279, ,646 Brilliance China Automotive Ltd 4,105, ,000 BYD Electronic International Co Ltd 942, ,054 Cafe De Coral Ltd 667, ,000 CAR Inc 374, ,698 Cathay Pacific Airways Ltd 659, ,742 China Agri-Industries Ltd 564, ,146 China Conch Venture Ltd 3,404, ,000 China Dongxiang Group Co Ltd 387, ,264 China Everbright International Ltd 2,499, ,332 China Everbright Ltd 1,189, ,943 China Evergrande Group 6,321, ,681 China Foods Ltd 179, ,106 China Gas Ltd 3,942, Hong Kong (58.22%) Continued 274,394 China Huishan Dairy Co Ltd ,405 China Jinmao Group Ltd 1,928, ,000 China Literature Ltd 943, ,000 China Medical System Ltd 2,209, ,466 China Mengniu Dairy Co Ltd 6,307, ,228 China Merchants Port Co Ltd 2,114, ,127 China Mobile Ltd 33,321, ,000 China Oceanwide Ltd 147, ,640 China Overseas Land & Investment Ltd 9,146, ,666 China Power International Development Ltd 781, ,336 China Resources Beer Co Ltd 4,703, ,533 China Resources Cement Ltd 1,034, ,419 China Resources Gas Group Ltd 1,891, ,966 China Resources Land Ltd 6,679, ,000 China Resources Pharmaceutical Group Ltd 1,595, ,318 China Resources Power Co Ltd 2,367, ,000 China South City Ltd 286, ,950 China State Construction International Ltd 1,685, ,778 China Taiping Insurance Co Ltd 3,263, ,000 China Traditional Chinese Medicine Co Ltd 1,134, ,000 China Travel International Investment Hong Kong Ltd 650, ,914 China Unicom Hong Kong Ltd 4,978, ,732 China Zhongwang Ltd 758, ,898 Chow Tai Fook Jewellery Group Ltd 767, ,000 CIFI Group Co Ltd 1,945, ,587 CIMC Enric Ltd 260, ,505 CITIC Ltd 4,737, ,000 CITIC Resources Ltd 119, ,727 CK Asset Ltd 15,522, ,727 CK Hutchison Ltd 22,040, ,995 CK Infrastructure Ltd 3,527, ,937 CLP Ltd 11,500, ,391,540 CNOOC Ltd 16,086, ,625 COSCO Shipping Ports Ltd 1,086, ,968 Country Garden Co Ltd 10,455, ,730 CSPC Pharmaceutical Group Ltd 8,084, ,248 Dah Sing Banking Group Ltd 500, ,513 Dah Sing Financial Ltd 670, ,800 Dairy Farm International Ltd 1,547, ,500 Dali Foods Group Co Ltd 1,075, ,990 ENN Energy Ltd 4,766, ,168 Esprit Ltd 382, ,882 Far East Horizon Ltd 1,526, ,991 FIH Mobile Ltd 515, ,197 First Pacific Co Ltd/Hong Kong 863, ,000 Fit Hon Teng Ltd 326, ,422 Fosun International Ltd 3,356, ,500 Fullshare Ltd 2,881, ,373 Galaxy Entertainment Group Ltd 13,207, ,209,913 GCL-Poly Energy Ltd 1,173, ,540 Geely Automobile Ltd 9,526, ,000 Genscript Biotech Corp 1,606, BlackRock Premier Funds