annual sHORT report BlackRock UK Equity Fund

For the year ended 28 February 2015 BlackRock UK Equity Fund Performance Record

This Annual Short Report for the BlackRock UK Equity Fund (the “Fund”) covers the year ended Capital (Unit Prices) 28 February 2015. The first six months were commented on in the Interim Report to 31 August 2014. I Income I Accumulation D Income D Accumulation Summary of Performance over the Period Units Units Units# Units† The Fund returned 6.5%* over the period from 1 March 2014 to 28 February 2015, outperforming Highest Lowest Highest Lowest Highest Lowest Highest Lowest its benchmark, the FTSE All-Share Index, which returned 5.6%. During the six month period to Offer Bid Offer Bid Offer Bid Offer Bid Price Price Price Price Price Price Price Price 28 February 2015, the Fund returned 6.3%*, outperforming its benchmark, which returned 4.1%. Calendar Year p p p p p p p p Fund Managers’ Commentary 2015* 1,713 1,557 5,520 5,020 1,712 1,557 5,398 4,910 UK equities enjoyed positive returns, but experienced plenty of ups and downs over the period, 2014 1,651 1,438 5,237 4,636 1,651 1,439 5 ,131 4,539 largely in response to changing interest rate expectations. Low bond yields prompted investors to favour shares with bond-like characteristics, those companies capable of delivering consistent 2013 1,620 1,388 5,078 4,215 1,621 1,388 4,985 4 ,14 6 earnings growth and predictable dividends. The European Central Bank’s announcement of a massive 2012 1,386 1,208 4,208 3,605 1,387 1,208 4 ,141 3,552 programme of spending in support of its economy (what is known as quantitative easing (“QE”)) helped investors become more confident towards the end of the period. 2011 1,414 1,10 9 4 ,118 3,276 1,285 1,10 6 3,970 3,233 Significant positives for the Fund included Reed Elsevier, Compass, Wolseley, Next and British 2010 1,382 1,078 3,997 3,072 N/A N/A N/A N/A

American Tobacco, which continued to grow their earnings and were beneficiaries of investors’ hunt * To 28 February. # D Income class commenced August 2011. † D Accumulation class commenced July 2011. for alternatives to bonds. In addition, healthcare provider Shire helped returns following a proposed, but ultimately abortive, takeover attempt. Income (Net Distributions/Net Accumulations) The main detractors included Hargreaves Lansdown, which fell as the fees it charges its customers I Income I Accumulation D Income D Accumulation came under greater pressure than had been expected. Motor insurer eSure moved lower as the # † stabilisation in insurance premiums continued to be fragile. Units Units Units Units Calendar Year Pence per Unit Pence per Unit Pence per Unit Pence per Unit In the most recent six month period, underweights to the struggling oil and gas and mining sectors added value after raw material prices (including oil) fell sharply. Elsewhere Essentra, which supplies 2015* 14.7203 47.4025 11.4869 35.4391 plastic and fibre products, beat market expectations with a strong increase in full-year earnings. 2014 44.8315 141.4167 40.0158 125.2555 In transactions, we bought new positions in AstraZeneca and and added to Reed 2013 47.4575 145.4958 43.7006 134.5333 Elsevier and easyJet. Sales included and Tullow Oil, with reductions to Next, , Shire and BG Group. 2012 36.4269 108.3059 27.7709 97.4793 US economic activity remains strong, in contrast to Europe. QE in Europe has already lifted 2011 28.7961 83.6986 N/A 0.0000 sentiment, although we don’t yet know what effect it will have on economic growth. We therefore 2010 28.5111 80.9160 N/A N/A see monetary policies in Europe and the US diverging further. Within the Fund we continue to focus on companies with a sustainable competitive advantage and those likely to benefit the most from * To 30 April. # D Income class commenced August 2011. † D Accumulation class commenced July 2011. economic growth. March 2015 Unit Price Summary

* Performance figures quoted are based on bid-to-bid closing prices (the price at which units are sold) and are not the same as the net Unit Price as at Unit Price as at asset value reported in the financial statements which is at close of business. Performance is calculated net of fees and reported for Unit Class 28 February 2015 28 February 2014 the Fund’s class I Accumulation Units. I Income 1,688p 1,629p Distributions Payable I Accumulation 5,489p 5,154p The final distribution payable on 30 April 2015 is 14.7203p net per income unit (30 April I Income 2014: 14.6776p net per income unit). D Income 1,690p 1,631p The final accumulation distribution payable on 30 April 2015 is 47.4025p net per D Accumulation 5,367p 5,028p I Accumulation accumulation unit (30 April 2014: 45.9795p net per accumulation unit). The final distribution payable on 30 April 2015 is 11.4869p net per income unit (30 April D Income 2014: 12.7033p net per income unit). The final accumulation distribution payable on 30 April 2015 is 35.4391p net per D Accumulation accumulation unit (30 April 2014: 38.8665p net per accumulation unit).

2 BlackRock UK Equity Fund BlackRock UK Equity Fund 3 Fund Information Portfolio Information

Summary of Investment Objective and Policy Five Largest Investments at 28 February 2015

The Fund aims to maximise the total return to investors from a combination of capital growth and % of Fund Value income by investing largely in the ordinary shares of United Kingdom companies in any and all economic sectors. The Fund may also invest in collective investment schemes. Royal Dutch Shell class ‘B’ shares 5.86 Risk Profile British American Tobacco 5.40 The Fund is exposed to movements in UK stock markets which may cause the value of the Fund to fall HSBC 4.81 or rise. AstraZeneca 4 .17 Fund Facts Wolseley 4 .11 Fund Managers* James Macpherson, Imran Sattar, Roland Arnold & Nick McLeod-Clarke Five Largest Investments at 28 February 2014

Establishment Date 12 October 1971 % of Fund Value Benchmark FTSE All-Share Index British American Tobacco 5.22 Assets Under Management £529,646,619 Royal Dutch Shell class ‘B’ shares 4.71 Income Allocation Dates 30 April & 31 October HSBC 4.66 Accounting Dates Last day of February & 31 August 4 .10 * The former manager, Simon Young relinquished his fund management responsibilities for the BlackRock UK Equity Fund in Wolseley 3.57 September 2014.

Ongoing Charges Classification of Investments The ongoing charges figures are based on expenses for the relevant period. These figures may vary 28 February 2015 from year to year. Banks  Beverages  28 February 2014 Unit Class 1.3.2014 to 28.2.2015 1.8.2013 to 28.2.2014† Chemicals I Income 0.52% 0.52% Construction & Materials I Accumulation 0.52% 0.52% Financial Services Food & Drug Retailers D Income 0.81% 0.77% General Retailers D Accumulation 0.81% 0.77% Household Goods & Home Construction

† Ongoing charges figures are based on annualised expenses for the period ended 28 February 2014. Please note the annual Industrial Engineering registrar fee was increased during the year from 0.00% to 0.15% in respect to class D units. Irish Investment Funds Life Insurance Risk and Reward Profile Media Lower risk Higher risk Mining Typically lower rewards Typically higher rewards Mobile Telecommunications Unit Class Non-Life Insurance I Income 1 2 3 4 5 6 7 Oil & Gas Producers I Accumulation 1 2 3 4 5 6 7 Pharmaceuticals & Biotechnology Real Estate Investment & Services D Income 1 2 3 4 5 6 7 Software & Computer Services D Accumulation 1 2 3 4 5 6 7 Support Services The risk indicator was calculated incorporating historical or simulated historical data and may not be a reliable Tobacco indication of the future risk profile of each unit class.T he risk category shown is not guaranteed and may change Travel & Leisure over time. The lowest category does not mean risk free. For more information on this, please see the Fund’s Key Other Investor Information Documents (KIIDs), which are available at www.blackrock.com. 0% 2% 4% 6% 8% 10% 12% % of the Fund

4 BlackRock UK Equity Fund BlackRock UK Equity Fund 5 All financial investments involve an element of risk.T herefore, the value of your investment and the income from it will vary and the return of your initial investment amount cannot be guaranteed. Changes in exchange rates may cause the value of an investment to fluctuate. For up-to-date prices and performance, please visit our website blackrock.co.uk. Past performance is not a guide to future performance and should not be the sole factor of consideration when selecting a product. Report and Accounts This report is to inform unitholders on the activities of the Fund during the reporting period, and the results of those activities at the end of the reporting period. For more information please contact the Manager. Copies of the Full Reports are available free of charge upon request from the BlackRock Investor Services Team on 0800 44 55 22.

You can obtain further information on this Fund by contacting your Financial Adviser. Alternatively, for more details on this and other BlackRock® Funds, including up to date prices and performance, please contact BlackRock Investor Services on 0800 44 55 22 or visit blackrock.co.uk. For your protection, telephone calls are usually recorded. This Report relates to the packaged products of, and is issued by, the Manager and Registrar: BlackRock Fund Managers Limited, 12 Throgmorton Avenue, London EC2N 2DL. Authorised and regulated by the Financial Conduct Authority. Registered in England No. 1102517. Trustee: BNY Mellon Trust & Depositary (UK) Limited, 160 Queen Victoria Street, London EC4V 4LA. Authorised and regulated by the Financial Conduct Authority. Auditor: Ernst & Young LLP, 1 More London Place, London SE1 2AF.

For more information 0800 44 55 22 blackrock.co.uk