Annual report BlackRock Asia Fund

For the year ended 28 February 2017 Contents General Information

General Information 2 Manager & Registrar BlackRock Fund Managers Limited About the Fund 3 12 Throgmorton Avenue, London EC2N 2DL Objective & Policy 3 Telephone: 020 7743 3000 Dealing and Investor Services: 0800 44 55 22 Member of The Investment Association and authorised and regulated by the Financial Conduct Authority. Fund Manager 3 Directors of the Manager Significant Events 3-4 G D Bamping* R A Damm N C D Hall* R A R Hayes A M Lawrence Risk and Reward Profile 4 A J Stenning (resigned 13 December 2016) E E Tracey M T Zemek* * Non-executive Director. Performance Table 5 Trustee Classification of 6 BNY Mellon Trust & Depositary (UK) Limited Investment Report 7 160 Queen Victoria Street, London EC4V 4LA Authorised and regulated by the Financial Conduct Authority. Performance Record 8 Investment Manager Distribution Tables 10 BlackRock (UK) Limited Report on Remuneration 11-15 12 Throgmorton Avenue, London EC2N 2DL Authorised and regulated by the Financial Conduct Authority. Portfolio Statement 16-18

Statement of Total Return 19 Investment Adviser BlackRock North Asia Limited Statement of Change in Net Assets Attributable to Unitholders 19 16F Champion Tower, Three Garden Road, Central,

Balance Sheet 20 Regulated by the Securities and Futures Commission.

Notes to Financial Statements 21-37 Agent BlackRock Advisors (UK) Limited Statement of Manager’s Responsibilities 38 12 Throgmorton Avenue, London EC2N 2DL Statement of the Depositary’s Responsibilities in Respect of the Fund and Report of the Authorised and regulated by the Financial Conduct Authority. Depositary to the Unitholders of the Fund for the Year Ended 28 February 2017 39 Auditor Independent Auditor’s Report 40-41 Ernst & Young LLP 1 More London Place, London SE1 2AF Supplementary Information 42-44 Custodian The of Mellon (International) Limited 1 Canada Square, London E14 5AL Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

BlackRock’s proxy voting agent is ISS (Institutional Shareholder Services).

This Report relates to the packaged products of and is issued by: BlackRock Fund Managers Limited 12 Throgmorton Avenue, London EC2N 2DL Telephone: 020 7743 3000 Dealing and Investor Services: 0800 44 55 22 .co.uk

For your protection, telephone calls are usually recorded.

1 BlackRock Asia Fund BlackRock Asia Fund 2 About the Fund Significant Eventscontinued

BlackRock Asia Fund (the “Fund”) is an authorised scheme and qualifies as a UCITS scheme under Changes in the Directors of the Manager the Financial Conduct Authority’s Collective Investment Schemes Sourcebook (the “COLL Sourcebook”). The AJ Stenning resigned as a Director effective 13 December 2016. Fund was authorised on 17 June 2013 and established on 28 June 2013. Discontinuation of the Report The Financial Conduct Authority issued a Policy Statement (PS16/23: “Smarter Consumer Communications: Investment Objective & Policy Removing ineffective disclosure requirements in our Handbook”) in which it removed the obligation on authorised fund managers to prepare an annual short report and a half-yearly short report for all UCITS schemes and non-UCITS retail schemes that they manage. As a result of this, the Manager has made the The Fund aims to achieve long-term capital growth by investing primarily in shares of companies domiciled decision to discontinue the production of short reports and unitholders will no longer receive the short in or exercising the predominant part of their economic activity in Asia, excluding Japan. The Fund may report for the Fund. The long form annual and interim reports will continue to be produced and are available also invest in other transferable securities (which for the avoidance of doubt may include securities of upon request from the Manager. any geographical focus including Japan), permitted money market instruments, permitted deposits, cash and near cash and units in collective investment schemes. Derivatives may be used for efficient portfolio management purposes only. Risk and Reward Profile

Fund Manager Lower risk Higher risk Typically lower rewards Typically higher rewards As at 28 February 2017, the Fund Manager is Andrew Swan. Unit Class A Accumulation 1 2 3 4 5 6 7 D Accumulation 1 2 3 4 5 6 7 Significant Events Z Income 1 2 3 4 5 6 7 Z Accumulation 1 2 3 4 5 6 7 Potential Implication of Brexit In a referendum held on 23 June 2016, the electorate of the United Kingdom (“UK”) resolved to leave the • The risk indicator was calculated incorporating historical or simulated historical data and may not be a European Union (“EU”). The result has led to political and economic instability and volatility in the financial reliable indication of the future risk profile of the Fund. markets of the UK and more broadly across Europe. It may also lead to weakening in consumer, corporate • The risk category shown is not guaranteed and may change over time. and financial confidence in such markets as the UK negotiates its exit from the EU. • The lowest category does not mean risk free. The longer-term process to implement the political, economic and legal framework between the UK and the • The use of derivatives will impact the value of the Fund and may expose the Fund to a higher degree of EU is likely to lead to continuing uncertainty. The changes, if any, to the marketing of the Fund in the EU post risk. Derivatives are highly sensitive to changes in the value of the asset on which they are based and can Brexit have yet to be determined, and may be subject to the outcomes of ongoing negotiations between the increase the size of losses and gains, resulting in greater fluctuations in the value of the Fund.The impact EU and the UK regarding the UK’s exit from the EU. to the Fund can be greater where derivatives are used in an extensive or complex way.

The result of this referendum will not change the underlying investment philosophies of how the Fund’s For more information on this, please see the Fund’s Key Investor Information Documents (KIIDs), which are portfolio is managed, however the mid to long term uncertainty may have an adverse effect on the economy available at www.blackrock.com. generally and on the ability of the Fund to execute its strategies and to receive attractive returns, and may also result in increased costs to the Fund.

Securities Financing Transactions Regulation (Regulation (EU) 2015/2365) (“SFTR”) SFTR came into force on 12 January 2016 and, amongst other requirements, introduces new disclosure requirements in the Fund’s annual and half-yearly reports published after 13 January 2017 detailing the Fund’s use of securities financing transactions and total return swaps (“TRS”). As a result, additional disclosures on securities lending and collateral have been included in the Supplementary Information section to the Annual Report. The information contained within the Supplementary Information should be read in conjunction with the financial instruments and risks section of the financial statements.

3 BlackRock Asia Fund BlackRock Asia Fund 4 Performance Table Classification of Investments

The following charts provide an analysis of the equity portfolio weightings as at 28 February 2017 and For the year For the three years§ to 28.2.2017 to 28.2.2017 29 February 2016 by their respective geographical locations. TOTAL RETURN (with net income reinvested) 28 February 2017 Class D Accumulation Units* BlackRock Asia Fund +47.3% +51.5%  China 36.33% MSCI All Country Asia ex Japan Index^ +41.7% +51.0%  Hong Kong 8.38%  India 11.52% All Fund figures quoted are based on bid-to-bid dealing prices (the price at which units are sold) and are calculated net of fees. Performance returns are cumulative. All returns are in Sterling.  Indonesia 7.11% § Five year performance data does not exist as the Fund launched in June 2013.  Philippines 1.99% * Effective 30 April 2016, the primary unit class was changed from class A Accumulation to class D Accumulation to reflect the Investment Association’s new definition for the primary unit class.  Singapore 1.03% ^ Figures from Index Vendor.  South Korea 18.26%  Taiwan 8.36% All financial investments involve an element of risk. Therefore, the value of your investment and the  4.97% income from it will vary and the return of your initial investment amount cannot be guaranteed. Changes in  Other 2.05% exchange rates may cause the value of an investment to fluctuate. Past performance is not a guide to future performance and should not be the sole factor of consideration when selecting a product.

29 February 2016

 China 35.18%  Hong Kong 11.44%  India 13.13%  Indonesia 6.18%  Singapore 1.53%  South Korea 14.29%  Taiwan 9.47%  Thailand 5.25%  Other 3.53%

5 BlackRock Asia Fund BlackRock Asia Fund 6 Investment Report Performance Record

Summary of Performance over the Year Comparative Table The Fund returned 47.3%* over the year to 28 February 2017, outperforming its benchmark, the MSCI All A Accumulation Units D Accumulation Units Country Asia ex Japan Index, which returned 41.7%. Over the six-month period to 28 February 2017, the Fund returned 11.4%*, outperforming its benchmark, which returned 10.0%. For the year For the year For the year For the year For the year For the year to 28.2.2017 to 29.2.2016 to 28.2.2015 to 28.2.2017 to 29.2.2016 to 28.2.2015 Fund Manager’s Commentary Pence per unit Pence per unit Pence per unit Pence per unit Pence per unit Pence per unit The strong relative return of Asian equities was largely helped by a more favourable view on the health of Change in net assets per unit the Chinese economy, low US interest rates, stronger Asian currencies and a renewed focus on emerging- Opening per unit 103.2 117.0 101.6 105.3 118.5 102.1 market assets. Investor confidence was also lifted by a more positive outlook for company earnings. However, this was tempered by concerns about President Trump’s trade protection proposals. The Fund’s Return before operating charges 49.93 (11.75) 17.31 51.09 (11.98) 17.51 return was particularly helped by sterling weakness in the aftermath of the UK’s decision to leave the Operating charges (2.24) (2.04) (1.91) (1.30) (1.23) (1.11) European Union on 23 June 2016. Return after operating charges 47.69 (13.79) 15.40 49.79 (13.21) 16.40

Distributions (0.69) (0.45) (0.60) (1.39) (1.10) (1.00) The largest positive stock contribution to relative returns came from Largan Precision, which is a Taiwanese camera modules manufacturer. In particular, the emergence of dual cameras, specifically on the iPhone 7, Retained distributions on accumulation units 0.69 0.45 0.60 1.39 1.10 1.00 has boosted the company’s profits. Elsewhere, Indian conglomerate Godrej Industries rose strongly when the firm’s results revealed notable strength in its property division. Less positively, e-commerce firm JD.com Closing net asset value per unit 150.9 103.2 117.0 155.1 105.3 118.5 detracted from relative returns amid fears about the effectiveness of the company’s internal transformation. After direct transaction costs of (0.34) (0.65) (0.38) (0.35) (0.66) (0.37)

We will maintain more exposure than the benchmark to Indonesia, given the recovery in its economy. A Performance similar stance will be taken in China, where we like areas of the market, such as energy and materials, which Return after charges1 46.21% (11.79)% 15.16% 47.28% (11.15)% 16.06% may benefit from economic reforms. We have also been increasing the Fund’s exposure to financials. Other information

Outlook Closing net asset value (£000’s) 472 428 554 48,108 30,031 44,593 Asian corporate earnings are finally starting to recover after five years of stagnation. This is being driven by Closing number of units 312,482 414,241 473,455 31,019,124 28,524,143 37,634,764 accelerating global and regional economic growth, at a time when supply and capacity remain constrained. Operating charges2 1.73% 1.85% 1.76% 0.98% 1.10% 1.01%

March 2017 Direct transaction costs3 0.27% 0.58% 0.36% 0.27% 0.58% 0.36%

* Performance figures quoted are based on bid-to-bid, dealing prices (the price at which units are sold). Performance is calculated net of fees and reported for the Fund’s Prices Pence per unit Pence per unit Pence per unit Pence per unit Pence per unit Pence per unit class D Accumulation Units. Highest offer unit price 160.3 140.2 126.7 156.9 135.3 122.1

Lowest bid unit price 103.0 93.57 98.75 105.3 95.09 99.27

1 The return after charges figures are based on the net asset value reported for financial statements purposes and are not the same as the performance returns figures quoted in the Performance Table and the Investment Report which are based on bid-to-bid dealing prices (the price at which units are sold). 2 Operating charges are annualised and exclude portfolio trade-related costs, except costs paid to the custodian/depositary and entry/exit charges paid to an underlying collective investment scheme (if any). 3 Direct transaction costs are annualised and principally comprise commissions and taxes, attributable to the Fund’s purchase and sale of equity instruments. See note 14 for further details.

7 BlackRock Asia Fund BlackRock Asia Fund 8 Performance Record continued Distribution Tables for the year ended 28 February 2017

Comparative Table Final Distribution in Pence per Unit Group 1 – Units purchased prior to 1 September 2016 Z Income Units Z Accumulation Units Group 2 – Units purchased 1 September 2016 to 28 February 2017 For the period For the period ^ ^ For the year from 29.5.2015 For the year from 29.5.2015 A Accumulation L Accumulation Z Income Z Accumulation to 29.2.2016 to 28.2.2015 to 29.2.2016 to 28.2.2015 Units Units Units^ Units§ Pence per unit Pence per unit Pence per unit Pence per unit Group 1 Group 2 Group 1 Group 2 Group 1 Group 2 Group 1 Group 2 Change in net assets per unit Net revenue (dividend) 0.0000 0.0000 0.2204 0.1681 0.2836 0.0000 0.2836 0.0549 Opening net asset value per unit 82.31 100.0 82.38 100.0 Equalisation† – 0.0000 – 0.0523 – 0.2836 – 0.2287 Return before operating charges 40.09 (16.62) 40.01 (16.93) Distribution payable 30.4.2017 0.0000 0.0000 0.2204 0.2204 0.2836 0.2836 0.2836 0.2836 Operating charges (0.80) (0.06) (0.81) (0.69) Distribution paid 30.4.2016 0.0000 0.0000 0.1870 0.1870 0.2349 0.2349 0.2349 0.2349 Return after operating charges 39.29 (16.68) 39.20 (17.62) Distributions (1.60) (1.01) (1.29) (1.03) Interim Distribution in Pence per Unit Retained distributions on Group 1 – Units purchased prior to 1 March 2016 accumulation units N/A N/A 1.29 1.08 Group 2 – Units purchased 1 March 2016 to 31 August 2016 Closing net asset value per unit 120.0 82.31 121.6 82.38 A Accumulation L Accumulation Z Income Z Accumulation After direct transaction costs of (0.27) (0.37) (0.28) (0.42) Units Units Units^ Units§

Performance Group 1 Group 2 Group 1 Group 2 Group 1 Group 2 Group 1 Group 2

Return after charges1 47.73% (16.68)% 47.58% (17.62)% Net revenue (dividend) 0.6882 0.4528 1.1648 0.7706 1.3200 1.3200 1.0030 1.0030 Equalisation† – 0.2354 – 0.3942 – 0.0000 – 0.0000 Other information Distribution paid 31.10.2016 0.6882 0.6882 1.1648 1.1648 1.3200 1.3200 1.0030 1.0030 Closing net asset value (£000’s) 1,824 0§ 102 303 Distribution paid 31.10.2015 0.4510 0.4510 0.9098 0.9098 0.7800 0.7800 0.8411 0.8411 Closing number of units 1,520,480 100 83,499 367,630 ^ Z Income class commenced May 2015. 2 Operating charges 0.78% 0.90% 0.78% 0.90% § Z Accumulation class commenced April 2015. Direct transaction costs3 0.27% 0.58% 0.27% 0.58% † Equalisation applies only to units purchased during the distribution period (Group 2 units). It is the average amount of revenue included in the purchase price of all Group 2 units and is refunded to holders of these units as a return of capital. Being capital, it is not liable to income tax but must be deducted from the cost of units for capital gains tax purposes. Prices Pence per unit Pence per unit Pence per unit Pence per unit

Highest offer unit price 121.7 100.2 123.0 101.6 Lowest bid unit price 82.25 74.94 82.40 74.32

^ The date of commencement of operations. 1 The return after charges figures are based on the net asset value reported for financial statements purposes and are not the same as the performance returns figures quoted in the Performance Table and the Investment Report which are based on bid-to-bid dealing prices (the price at which units are sold). 2 Operating charges are annualised and exclude portfolio trade-related costs, except costs paid to the custodian/depositary and entry/exit charges paid to an underlying collective investment scheme (if any). 3 Direct transaction costs are annualised and principally comprise commissions and taxes, attributable to the Fund’s purchase and sale of equity instruments. See note 14 for further details. § Amounts less than £500 are rounded to zero.

9 BlackRock Asia Fund BlackRock Asia Fund 10 Report on Remuneration

The below disclosures are made in respect of the remuneration policies of the BlackRock group (“BlackRock”), (b) EMEA Compensation Committee as they apply to BlackRock Fund Managers Limited (the “Manager”). The disclosures are made in accordance The Committee is established for the purpose of reviewing compensation policies, practices, and principles with the Directive 2009/65/EC on the coordination of laws, regulations and administrative provisions as required by local/regional rules set by regulatory bodies. Specifically, the Committee’s primary purposes relating to undertakings for collective investment in transferable securities (“UCITS”), as amended, including are to review and make recommendations concerning: in particular by Directive 2014/91/EU of the European Parliament and of the council of 23 July 2014, (the “Directive”), the “Guidelines on sound remuneration policies under the UCITS Directive and AIFMD” issued • executive compensation programmes; by the European Securities and Markets Authority, the Financial Conduct Authority Handbook SYSC 19E: • employee benefit plans; The UCITS Remuneration Code (the “UCITS Remuneration Code”), and COLL 4.5.7 R(7). • such other compensation plans as may be established from time to time; and BlackRock’s UCITS Remuneration Policy (the “UCITS Remuneration Policy”) applies to the EEA entities • other local/regional compensation policies, practices, and principles as required to comply with local/ within the BlackRock group authorised as a manager of funds in accordance with the regional rules as set by regulators. Directive, and will ensure compliance with the requirements of Article 14b of the Directive and the UCITS Remuneration Code. The Committee consists of a minimum of three members and is constituted in a way that enables it to exercise its judgment and demonstrate its ability to make decisions which are consistent with the current and The Manager has adopted the UCITS Remuneration Policy, a summary of which is set out below. future financial status of the business. The current members are: David Blumer, Head of the EMEA Region; Dan Dunay, Global Head of Reward; and Karen Dennehy, EMEA Head of Human Resources. Only members Role of the Compensation Committees of the Committee have the right to attend Committee meetings and the Committee may request the Remuneration governance is a tiered structure including the Management Development and Compensation attendance of any executive or other person as deemed appropriate to facilitate the review of remuneration Committee (“MDCC”) of BlackRock, Inc.’s (the “BlackRock, Inc. Board”) (BlackRock Inc.’s recommendations and policy design to ensure that the remuneration practices are consistent with effective independent remuneration committee), complemented by the EMEA Compensation Committee (the and do not encourage excessive risk taking. “Committee”) and the Manager’s board of directors (the “Manager’s Board”). These bodies are responsible for the determination of the Manager’s remuneration policies. Examples of additional attendees may include individuals from the Enterprise Risk and Regulatory Compliance functions. (a) MDCC The MDCC’s primary purposes include: Decision-making process Compensation decisions for employees are made once annually in January following the end of the • to provide oversight of: BlackRock performance year. This timing allows full-year financial results to be considered along with – BlackRock’s executive compensation programmes; other non-financial goals and objectives. Although the framework for compensation decision-making is tied to financial performance, significant discretion is used to determine individual compensation based – BlackRock’s employee benefit plans; on achievement of strategic and operating results and other considerations such as management and leadership capabilities. – such other compensation plans as may be established by BlackRock from time to time for which the MDCC is deemed as administrator; and No set formulas are established and no fixed benchmarks are used in determining annual incentive awards. • review and discuss the compensation discussion and analysis included in the BlackRock, Inc. annual proxy In determining specific individual compensation amounts, a number of factors are considered including statement with management and approval of the MDCC report for inclusion in the proxy statement. non-financial goals and objectives and overall financial and investment performance. These results are viewed in the aggregate without any specific weighting, and there is no direct correlation between any The MDCC directly retains its own independent compensation consultant, Semler Brossy Consulting Group particular performance measure and the resulting annual incentive award. LLC, who has no relationship with BlackRock, Inc. or the BlackRock, Inc. Board that would interfere with its ability to provide independent advice to the MDCC on compensation matters. Annual incentive awards are generated from a bonus pool.

The MDCC is currently composed of Messrs. Gerber (Chairman), Komansky, Grosfeld, Maughan, Mills and The size of the projected bonus pool, including cash and equity awards, is reviewed throughout the year Nixon. The BlackRock, Inc. Board has determined that all of the members of the MDCC are “independent” by the MDCC and the final total bonus pool is approved after year-end. As part of this review, the MDCC within the meaning of the listing standards of the (NYSE), which requires each receives actual and projected financial information over the course of the year as well as final year-end meet a “non-employee director” standard. information. The financial information that the MDCC receives and considers includes the current year projected income statement and other financial measures compared with prior year results and the current The MDCC held 8 meetings during 2016. The MDCC charter is available on BlackRock, Inc.’s website year budget. The MDCC additionally reviews other metrics of Blackrock’s financial performance (e.g., net (www.blackrock.com). inflows of AUM and investment performance) as well as information regarding market conditions and competitive compensation levels.

11 BlackRock Asia Fund BlackRock Asia Fund 12 Report on Remuneration continued

The MDCC regularly considers management’s recommendation as to the percentage of pre-incentive In keeping with the pay-for-performance philosophy, ratings are used to differentiate and reward individual operating income that will be accrued and reflected as a compensation expense throughout the year for performance – but don’t pre-determine compensation outcomes. Compensation decisions remain the cash portion of the total annual bonus pool (the “accrual rate”). The accrual rate of the cash portion discretionary and are made as part of the year-end compensation process. of the total annual bonus pool may be modified by the MDCC during the year based on its review of the financial information described above. The MDCC does not apply any particular weighting or formula to the When setting remuneration levels other factors are considered, as well as individual performance, which information it considers when determining the size of the total bonus pool or the accruals made for the cash may include: portion of the total bonus pool. • the performance of the Manager, the funds managed by the Manager and/or the relevant functional Following the end of the BlackRock performance year, the MDCC approves the final bonus pool amount. department; • factors relevant to an employee individually (e.g. relevant working arrangements (including part-time As part of the year-end review process the Enterprise Risk and Regulatory Compliance departments report status if applicable); relationships with clients and colleagues; teamwork; skills; any conduct issues; and, to the Committee on any activities, incidents or events that consideration in making compensation subject to any applicable policy, the impact that any relevant leave of absence may have on contribution decisions. to the business); • the management of risk within the risk profiles appropriate for BlackRock’s clients; Individuals are not involved in setting their own remuneration. • strategic business needs, including intentions regarding retention; Control functions • market intelligence; and Each of the control functions (Enterprise Risk, Legal & Compliance, and Internal Audit) has its own • criticality to business. organisational structure which is independent of the business units. The head of each control function is either a member of the Global Executive Committee, BlackRock’s global management committee, or has a A primary product tool is risk management and, while employees are compensated for strong performance reporting obligation to the Manager’s Board. in their management of client assets, they are required to manage risk within the risk profiles appropriate for their clients. Therefore, employees are not rewarded for engaging in high-risk transactions outside of Functional bonus pools are determined with reference to the performance of each individual function. established parameters. Compensation practices do not provide undue incentives for short-term planning The remuneration of the senior members of control functions is directly overseen by the Committee. or short-term financial rewards, do not reward unreasonable risk and provide a reasonable balance between the many and substantial risks inherent within the business of investment management, risk management Link between pay and performance and advisory services. There is a clear and well defined pay-for-performance philosophy and compensation programmes which are designed to meet five key objectives as detailed below: The compensation model includes a basic salary, which is contractual, and a discretionary bonus scheme. Although all employees are eligible to be considered for a bonus, there is no contractual obligation to • attracting, retaining and motivating employees capable of making significant contributions to the long- make any award to an employee under its discretionary bonus scheme. In exercising discretion to award a term success of the business; discretionary bonus, the factors listed above (under the heading “Link between pay and performance”) may • aligning the interests of senior employees with those of shareholders by awarding BlackRock, Inc. stock be taken into account in addition to any other matters which become relevant to the exercise of discretion in as a significant part of both annual and long-term incentive awards; the course of the BlackRock performance year. • controlling fixed costs by ensuring that compensation expense varies with profitability; Discretionary bonus awards for all employees, including executive officers, are subject to a guideline that • linking a significant portion of an employee’s total compensation to the financial and operational determines the portion paid in cash and the portion paid in stock and subject to additional vesting/clawback performance of the business as well as its performance; and conditions. As annual compensation increases, a greater portion is paid in stock. The MDCC adopted • discouraging excessive risk-taking. this approach in 2006 to substantially increase the retention value and shareholder alignment of the compensation package for eligible employees, including the executive officers. The portion deferred into Driving a high-performance culture is dependent on the ability to measure performance against objectives, stock vests in equal instalments over the three years following grant. values and behaviours in a clear and consistent way. Managers use a 5-point rating scale to provide an overall assessment of an employee’s performance, and employees also provide a self-evaluation. The Supplementary to the annual discretionary bonus as described above, equity awards from the “Partner Plan” overall, final rating is reconciled during each employee’s performance appraisal. Employees are assessed and “Enterprise Leadership Acceleration at BlackRock Plan” are made to select senior leaders to provide on the manner in which performance is attained as well as the absolute performance itself. greater linkage with future business results. These long-term incentive awards have been established individually to provide meaningful incentives for continued performance over a multi-year period recognizing the scope of the individual’s role, business expertise and leadership skills. These awards usually vest fully three years after they are granted.

13 BlackRock Asia Fund BlackRock Asia Fund 14 Report on Remuneration continued Portfolio Statement at 28 February 2017

Selected senior leaders are eligible to receive performance-adjusted equity-based awards from the Holding or Market % of “BlackRock Performance Incentive Plan” (“BPIP”). Awards made from the BPIP have a three-year performance Nominal Value Total Net period based on a measurement of As Adjusted Operating Margin1 and Organic Revenue Growth2. Value Investment £000’s Assets Determination of pay-out will be made based on BlackRock’s achievement relative to target financial results at the conclusion of the performance period. The maximum number of shares that can be earned is 165% EQUITIES – 97.95%; 29.2.2016 96.47% of the award in those situations where both metrics achieve pre-determined financial targets. No shares will China – 36.33%; 29.2.2016 35.18% be earned where BlackRock’s financial performance in both of the above metrics is below a pre-determined 618,478 3SBio 604 1.20 performance threshold. These metrics have been selected as key measures of shareholder value which 18,428 Alibaba ADS (each representing 1 ordinary share) 1,535 3.04 endure across market cycles. 1,656,000 Aluminum Corporation of ChinaØ 664 1.31 2,964,000 1,206 2.39 A limited number of investment professionals have a portion of their annual discretionary bonus (as 1,945,000 BBMG 729 1.44 described above) awarded as deferred cash that notionally tracks investment in selected products 4,265 China Biologic Products 370 0.73 managed by the relevant employee. The intention of these awards is to align investment professionals 2,980,000 China Construction Bank 1,969 3.90 with the investment returns of the products they manage through the deferral of compensation into those 595,000 China Life Insurance 1,454 2.88 products. Clients and external evaluators have increasingly viewed more favourably those products where 943,000 China Longyuan Power 649 1.28 key investors have “skin in the game” through significant personal investments. These awards vest in equal 746,000 China Oilfield ServicesØ 598 1.18 instalments over the three years following grant. 1,232,000 China Petroleum & Chemical 767 1.52 299,777 China Resources Land 657 1.30 Identified Staff 443,000 Chongqing Rural 249 0.49 The UCITS Remuneration Policy sets out the process that will be applied to identify staff as Identified Staff, 478,000 CNOOC 454 0.90 being categories of staff of the Manager, including senior management, risk takers, control functions and 11,396 warrants 8/6/2026 473 0.94 any employee receiving total remuneration that takes them into the same remuneration bracket as senior 286,143 Deutsche Bank warrants(Shenz Airport) 17/3/2023 281 0.56 management and risk takers, whose professional activities have a material impact on the risk profiles of the 24,800 Dongfang Electric 21 0.04 Manager or of the funds it manages. 1,376,000 Guangshen Railway 691 1.37 888,666 Li Ning 476 0.94 The list of Identified Staff will be subject to regular review, being formally reviewed in the event of, but not 462,000 PetroChina Class ‘H’ Shares 283 0.56 limited to: 6,561 Project Dash 202 0.40 6,305 Project Dash preference shares 194 0.38 • Organisational changes 205,864 Shenzhen Gas warrants 3/12/2024 216 0.43 • New business initiatives 127,400 Tencent 2,731 5.41 843,400 Semiconductor Manufacturing InternationalØ 880 1.74 • Changes in significant influence function lists 18,353 36.33 • Changes in role responsibilities • Revised regulatory direction Hong Kong – 8.38%; 29.2.2016 11.44% 176,200 AIA 895 1.77 Quantitative Remuneration Disclosure 26,403 Citigroup Warrants (Hong Kong Exchanges & Clearing) 8/2/2018 527 1.04 Appropriate disclosures will be made in due course in accordance with Article 69(3) of the Directive once a 1,074,000 Giordano International 468 0.93 full BlackRock performance year has been completed. 4,313 Hong Kong Exchanges & Clearing 86 0.17 19,819 Melco Crown Entertainment ADR (each representing 3 ordinary shares) 257 0.51 208,000 Melco International Development 256 0.51 184,000 MGM China 269 0.53 169,200 Sands China 567 1.12 77,486 Sun Hung Kai Properties 911 1.80 1 As Adjusted Operating Margin: As reported in BlackRock, Inc.’s external filings, reflects adjusted Operating Income divided by Total Revenue net of distribution and 4,236 8.38 servicing expenses and amortisation of deferred sales commission. 2 Organic Revenue Growth: Equal to net new base fees plus net new Aladdin revenue generated in the year (in dollars).

15 BlackRock Asia Fund BlackRock Asia Fund 16 Portfolio Statement continued

Holding or Market % of Holding or Market % of Nominal Value Total Net Nominal Value Total Net Value Investment £000’s Assets Value Investment £000’s Assets

India – 11.52%; 29.2.2016 13.13% Taiwan – 8.36%; 29.2.2016 9.47% 68,094 Axis Bank 415 0.82 76,000 Airtac International 564 1.12 89,159 Bharat Petroleum 719 1.42 163,000 Delta Electronics 729 1.44 2,586 Blue Dart Express 133 0.26 8,000 Largan Precision 954 1.89 139,670 Godrej Industries 845 1.67 399,000 Taiwan Semiconductor Manufacturing 1,973 3.91 13,465 Hero Moto 508 1.01 4,220 8.36 36,567 J Kumar Infraprojects 98 0.19 567,595 JSW Energy 447 0.89 Thailand – 4.97%; 29.2.2016 5.25% 450,531 NTPC 884 1.75 220,200 Kasikornbank 969 1.92 98,203 Oberoi Realty 382 0.76 70,400 PTT (Alien Market) 644 1.27 1,077,974 Suzlon Energy 236 0.47 75,450 Siam Cement 897 1.78 92,573 Tata Motors 510 1.01 2,510 4.97 73,998 UPL 639 1.27 Portfolio of investments 49,475 97.95 5,816 11.52 CASH EQUIVALENTS Indonesia – 7.11%; 29.2.2016 6.18% 1,748,100 Astra 864 1.71 Short-term Money Market Funds – 1.39%; 29.2.2016 0.88% 2,755,462 Bank Negara Indonesia 1,034 2.05 700,148 Institutional Cash Series plc – Institutional Sterling 837,000 Bank Rakyat Indonesia 602 1.19 Liquidity Fund* 700 1.39 5,423,113 Cikarang Listrindo 413 0.82 Net other assets 331 0.66 3,969,400 Perusahaan Gas 677 1.34 Total net assets 50,506 100.00 3,590 7.11 Unless otherwise stated, all securities are either listed on a recognised exchange or traded on an eligible securities market. Philippines – 1.99%; 29.2.2016 0.00% * Managed by a related party. 1,807,500 CEMEX Philippines 263 0.52 Ø All or a portion of this investment represents a security on loan, see note 2(b)(iii) for further details. 299,190 Metropolitan Bank & Trust 385 0.76 486,900 Puregold Price Club 358 0.71 1,006 1.99 Singapore – 1.03%; 29.2.2016 1.53% 67,600 Citigroup Warrants (Singapore Exchange) 8/2/2018 291 0.58 52,800 Singapore Exchange 227 0.45 518 1.03 South Korea – 18.26%; 29.2.2016 14.29% 41,492 Doosan Bobcat 1,087 2.15 7,019 Korea Aerospace Industries 290 0.57 4,226 Kumho Petro Chemical 230 0.46 2,823 LG Chemical 567 1.12 1,235 LG Household & Healthcare 770 1.52 1,630 NAVER 899 1.78 5,983 POSCO 1,206 2.39 1,632 Samsung Electronics 2,230 4.42 529 Samsung Electronics preference shares 563 1.11 25,950 Shinhan Financial 861 1.70 8,517 S-OilØ 523 1.04 9,226 18.26

17 BlackRock Asia Fund BlackRock Asia Fund 18 Statement of Total Return Balance Sheet for the year ended 28 February 2017 at 28 February 2017

For the year For the year 28.2.2017 29.2.2016 to 28.2.2017 to 29.2.2016 Notes £000’s £000’s Notes £000’s £000’s £000’s £000’s Assets: Income Fixed assets Net capital gains/(losses) 3 15,176 (2,094) – Investment assets 49,475 29,676 Revenue 4 922 664 Current assets Expenses 5 (388) (316) – Debtors 9 1,114 706 Interest payable and – Cash and bank balances 146 989 similar charges 6 – (1) – Cash equivalents 10 700 271 Net revenue before taxation 534 347 Total assets 51,435 31,642 Taxation 7 (96) (58) Liabilities: Net revenue after taxation 438 289 Creditors Total return before distributions 15,614 (1,805) – Distributions payable (4) – Distributions 8 (438) (274) – Other creditors 11 (925) (880) Change in net assets Total liabilities (929) (880) attributable to unitholders from investment activities 15,176 (2,079) Net assets attributable to unitholders 50,506 30,762

Statement of Change in Net Assets Attributable to Unitholders N C D Hall (Director) M T Zemek (Director) for the year ended 28 February 2017 BlackRock Fund Managers Limited 27 April 2017 For the year For the year to 28.2.2017 to 29.2.2016 £000’s £000’s £000’s £000’s

Opening net assets attributable to unitholders 30,762 45,147 Amounts receivable on issue of units 17,508 10,011 Amounts payable on cancellation of units (13,378) (22,606) 4,130 (12,595) Change in net assets attributable to unitholders from investment activities 15,176 (2,079) Retained distribution on accumulation units 438 289 Closing net assets attributable to unitholders 50,506 30,762

19 BlackRock Asia Fund BlackRock Asia Fund 20 Notes to Financial Statements for the year ended 28 February 2017

1. Accounting and Distribution Policies (f) All expenses, except those relating to the purchase and sale of investments are charged against Accounting Policies revenue. All expenses are recognised on an accruals basis. (a) The financial statements have been prepared in accordance with the Statement of Recommended (g) Provision for corporation tax is made at the current rate on the excess of taxable revenue over allowable Practice for Authorised Funds (the “SORP”) issued by the Investment Management Association (now expenses. Provision is made on all material timing differences arising from the different treatment of known as the Investment Association) in May 2014. Amendments to Financial Reporting Standard (“FRS”) items for accounting and tax purposes. A deferred tax asset is recognised only to the extent that it is 102 ‘Fair value hierarchy disclosures’ effective for annual periods beginning on or after 1 January 2017 considered more likely than not that there will be taxable profits in the future against which the asset can have been early adopted. These amendments improve the consistency of fair value disclosures for be offset. financial instruments with those required by EU-adopted IFRS. (h) The investments of the Fund have been valued at market value, defined as fair value, which is usually Certain presentation amendments have been required which have no impact on the total return or Net bid value at 12 noon on the last business day of the accounting period. In the case of an investment Asset Value (“NAV”) in either the current or prior accounting period. These amendments are listed below. which is not quoted, listed or dealt in on a recognised market, or in respect of which a listed, traded or dealt price or quotation is not available at the time of valuation, the fair value of such investment shall Nature of Change in Presentation be estimated with care and in good faith by a competent professional person, body, firm or corporation Comparative Tables including the Manager’s pricing committee, and such fair value shall be determined on the basis of Previously, the retained distributions on accumulation units were situated beneath the closing net asset the probable realisation value of the investment. The Manager shall be entitled to adopt an alternative value per unit line in the Comparative Table. It has now been moved up to within the NAV calculation. method of valuing any particular asset or liability if it considers that the methods of valuation set out This has led to the renaming of the line ‘Distributions on income units’ to ‘Distributions’ and now shows above do not provide a fair valuation of a particular asset or liability. the distribution for both income and accumulation units. Investments in single priced Collective Investment Schemes have been valued at market values, defined Reasons for Changes in Presentation as fair value, which is usually the latest available price at the Fund’s 12 noon valuation point on the last business day of the accounting period. Comparative Tables The Investment Association issued a guidance paper with the purpose of enhancing the transparency (i) Any transactions in foreign currencies are translated into Sterling at the rates of exchange ruling on the and comparability of the performance and returns of income and accumulation units. date of any such transaction. Assets and liabilities in foreign currencies are translated into Sterling at the exchange rates ruling at the 12 noon on the last business day of the accounting period. Revenue items (b) Dividends on quoted ordinary shares and preference shares are recognised when the securities are in foreign currencies are translated into Sterling at the exchange rate when the revenue is received. quoted ex-dividend. Where such securities are not quoted, dividends are recognised when the right to receive payment is established. (j) Where appropriate, certain permitted financial instruments such as derivatives are used for efficient portfolio management. Where such financial instruments are used to protect or enhance revenue, the All distributions from Collective Investment Schemes (“CIS”) are recognised when the securities are revenue and expenses derived therefrom are included in “Revenue” in the Statement of Total Return. quoted ex-dividend. All distributions from holdings in CIS are treated as revenue with the exception of Where such financial instruments are used to protect or enhance capital, the gains and losses derived the equalisation element, which is treated as capital. therefrom are included in “Net capital gains/(losses)” in the Statement of Total Return. All revenue is recognised as a gross amount that takes account of any withholding taxes but excludes (k) Cash and bank balances consist of deposits held on call with and cash held with clearing brokers any other taxes such as attributable tax credits. and counterparties. Cash equivalents are investments in non-variable net asset value money market Revenue from securities lending is accounted for net of associated costs and is recognised on an funds that are readily convertible to known amounts of cash. accruals basis. Distribution Policies Bank interest is recognised on an accruals basis. (l) The ordinary element of stock dividends is treated as revenue but does not form part of the distribution. The Fund receives Manager’s charge rebates from BlackRock related investments in the normal course (m) Special dividends and share buy backs recognised as revenue form part of the distribution. of business. These are recognised on an accruals basis and are treated as revenue, unless it is the policy of the underlying fund to charge its fees to capital, in which case these rebates will be recognised as (n) All of the net revenue available for distribution at the final accounting period end will be distributed capital. to unitholders with the balance attributable to accumulation unitholders retained within the Fund. In (c) Ordinary stock dividends are recognised wholly as revenue and are based on the market value of the order to conduct a controlled dividend flow to unitholders, interim distributions may be made at the shares on the date they are quoted ex-dividend. Where an enhancement is offered, the amount by which Manager’s discretion, up to a maximum of the distributable revenue available for the period. Should the market value of the shares (on the date they are quoted ex-dividend) exceeds the cash dividend is expenses and taxation together exceed revenue, there will be no distribution and the shortfall will be taken to capital. met from capital. (d) The underlying circumstances behind both special dividends and share buy backs are reviewed on a case by case basis in determining whether the amount is revenue or capital in nature. Any tax treatment will follow the accounting treatment of the principal amount. (e) Underwriting commission is wholly recognised as revenue when the issue takes place, except where the Fund is required to take up some or all of the shares underwritten, in which case an appropriate proportion of the commission received is deducted from the cost of those shares.

21 BlackRock Asia Fund BlackRock Asia Fund 22 Notes to Financial Statements continued

2. Financial Instruments and Risks i) Market risk arising from foreign currency risk The Fund’s investment activities expose it to the various types of risk which are associated with the Exposure to foreign currency risk financial instruments and markets in which it invests. The following information is not intended to be a Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will comprehensive summary of all risks and investors should refer to the Prospectus for a more detailed fluctuate because of changes in foreign exchange rates. discussion of the risks inherent in investing in the Fund. The Fund may invest in securities, which may be denominated in currencies other than its reporting Risk management framework currency. The Manager has delegated the day-to-day administration of the investment programme to the The Fund may also invest in forward currency contracts and thus gain further exposure to foreign Investment Manager. The Investment Manager is also responsible for ensuring that the Fund is managed currency risk. within the terms of its investment guidelines and limits set out in the Prospectus. The Manager reserves to itself the investment performance, product risk monitoring and oversight and the responsibility for The tables below outline the Fund’s exposure to foreign currency risk as at the Balance Sheet date. the monitoring and oversight of regulatory and operational risk for the Fund. 28 February 2017 The Manager has appointed a risk manager who has responsibility for the daily risk management Gross Net process with assistance from key risk management personnel of the Investment Manager, including Foreign Forward Foreign members of the BlackRock Risk and Quantitative Analysis Group (“RQA Group”) which is a centralised Currency Currency Currency group which performs an independent risk management function. The RQA Group independently Exposure Contracts Exposure % of identifies, measures and monitors investment risk. The RQA Group tracks the actual risk management Foreign currency exposure £000’s £000’s £000’s Net Assets practices being deployed across the different funds. By breaking down the components of the process, Chinese yuan renminbi 142 – 142 0.28 the RQA Group has the ability to determine if the appropriate risk management processes are in place for the Fund. This captures the risk management tools employed, how the levels of risk are controlled, Hong Kong dollar 18,395 – 18,395 36.42 ensuring risk/return is considered in portfolio construction and reviewing outcomes. Indian rupee 5,836 – 5,836 11.56

The principal risk exposure of the Fund is set out as follows: Indonesian rupiah 3,590 – 3,590 7.11 Philippine peso 989 – 989 1.96 a) Market risk Singapore dollar 227 – 227 0.45 Market risk arises mainly from uncertainty about future values of financial instruments influenced by South Korean won 9,321 – 9,321 18.45 other price, currency and interest rate movements. It represents the potential loss the Fund may suffer through holding market positions in the face of market movements. The Fund is exposed to market risk Taiwan dollar 4,221 – 4,221 8.36 by virtue of its investments in equities. Thai baht 2,509 – 2,509 4.97 A key metric the RQA Group uses to measure market risk is Value-at-Risk (“VaR”) which encompasses US dollar 4,346 – 4,346 8.60 price, currency and interest rate risk. VaR is a statistical risk measure that estimates the potential Total exposure to foreign currencies 49,576 – 49,576 98.16 portfolio loss from adverse market moves in an ordinary market environment. VaR analysis reflects the interdependencies between risk variables, unlike a traditional sensitivity analysis.

The VaR calculations are based on an adjusted historical simulation model with a confidence level of 99%, a holding period of one day and a historical observation period of not less than one year (250 days). A VaR number is defined at a specified probability and a specified time horizon. A 99% one day VaR means that the expectation is that 99% of the time over a one day period the Fund will lose less than this number in percentage terms. Therefore, higher VaR numbers indicate higher risk.

It is noted that the use of the VaR methodology has limitations, namely that the use of historical market data as a basis for estimating future events does not encompass all possible scenarios, particularly those that are of an extreme nature and that the use of a specified confidence level (e.g. 99%) does not take into account losses that occur beyond this level. There is some probability that the loss could be greater than the VaR amounts. These limitations and the nature of the VaR measure mean that the Fund can neither guarantee that losses will not exceed the VaR amounts indicated, nor that losses in excess of the VaR amounts, will not occur more frequently.

The one day VaR as at 28 February 2017 and 29 February 2016 based on a 99% confidence level was 2.22% and 4.11% respectively.

23 BlackRock Asia Fund BlackRock Asia Fund 24 Notes to Financial Statements continued

29 February 2016 iii) Market risk arising from interest rate risk Exposure to interest rate risk Gross Net Foreign Forward Foreign Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate Currency Currency Currency because of changes in market interest rates. Exposure Contracts Exposure % of The Fund is exposed to interest rate risk on its cash and bank balances held at The Bank of New York Foreign currency exposure £000’s £000’s £000’s Net Assets Mellon (International) Limited, amounts held at futures clearing houses and brokers and cash equivalent Chinese yuan renminbi 8 – 8 0.03 holdings. Cash held on deposit at The Bank of New York Mellon (International) Limited receives/incurs Hong Kong dollar 11,974 – 11,974 38.92 interest at the prevailing daily rate which may be negative depending on the currency in which the cash Indian rupee 4,086 – 4,086 13.28 is held. Indonesian rupiah 1,905 – 1,905 6.19 At 28 February 2017 and 29 February 2016, no interest bearing investments were held by the Fund, Singapore dollar 196 – 196 0.64 hence no interest rate risk table has been provided. South Korean won 4,350 – 4,350 14.14 Management of interest rate risk Taiwan dollar 2,449 – 2,449 7.96 Interest rate risk exposure is managed by constantly monitoring the position for deviations outside a pre-determined tolerance level and, when necessary, rebalancing back to the original desired parameters. Thai baht 1,615 – 1,615 5.25 US dollar 3,280 – 3,280 10.66 b) Counterparty credit risk Total exposure to foreign currencies 29,863 – 29,863 97.07 Exposure to counterparty credit risk Counterparty credit risk is the risk that one party to a financial instrument will cause a financial loss for Management of foreign currency risk the other party by failing to discharge an obligation. Foreign currency exposures are managed within parameters utilising forward currency contracts. There The Fund is exposed to counterparty credit risk from the parties with which they trade and will bear the were no open forward currency contracts at the year end (29 February 2016: Nil). risk of settlement default. ii) Market risk arising from other price risk Management of counterparty credit risk Exposure to other price risk Counterparty credit risk is monitored and managed by BlackRock’s RQA Counterparty & Concentration Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate Risk Team. The team is headed by BlackRock’s Chief Counterparty Credit Officer who reports directly to because of changes in market prices (other than those arising from interest rate risk or currency risk), the Global Head of RQA. Credit authority resides with the Chief Counterparty Credit Officer and selected whether those changes are caused by factors specific to the individual financial instrument or its issuer, team members to whom specific credit authority has been delegated. As such, counterparty approvals or factors affecting similar financial instruments traded in the market. may be granted by the Chief Counterparty Credit Officer or by identified RQA Credit Risk Officers who have been formally delegated authority by the Chief Counterparty Credit Officer as deemed appropriate. The Fund is exposed to other price risk arising from its investments. The exposure of the Fund to other price risk is the market value of the investments held as shown in the portfolio statement of the Fund. BlackRock’s RQA Counterparty & Concentration Risk Team completes a formal review of each new counterparty, monitors and reviews all approved counterparties on an ongoing basis and maintains an Management of other price risk active oversight of counterparty exposures. The Investment Manager manages the Fund’s other price risk on a daily basis in accordance with the Fund’s investment objective. The Manager maintains a list of approved counterparties. This list is regularly monitored and revised for changes based on the counterparty’s creditworthiness, market reputation and expectations of future By diversifying the portfolio, where this is appropriate and consistent with the Fund’s objectives, the financial performance. Transactions will only be opened with financial intermediaries on the approved risk that a price change of a particular investment will have a material impact on the net asset value of counterparties list. the Fund is minimised. The investment concentrations within the portfolio are disclosed in the portfolio statement by investment type.

25 BlackRock Asia Fund BlackRock Asia Fund 26 Notes to Financial Statements continued i) Trustee and Custodian The following table details the value of securities on loan (individually identified in the portfolio The Fund’s Trustee is BNY Mellon Trust & Depositary (UK) Limited (the “Trustee”). The Trustee has statement) and associated collateral received, analysed by borrowing counterparty as at the Balance delegated the function of custodian of the property of the Fund to The Bank of New York Mellon Sheet date. (International) Limited (the “Custodian”). 28 February 2017 29 February 2016

Substantially all of the investments other than Financial Derivative Instruments (“FDIs”) of the Fund Counterparty’s Securities Collateral Securities Collateral are held by the Custodian at year end. Investments are segregated from the assets of the Custodian, Country of on loan received on loan received with ownership rights remaining with the Fund. Bankruptcy or insolvency of the Custodian may cause Counterparty establishment £000’s £000’s £000’s £000’s the Fund’s rights with respect to its investments held by the Custodian to be delayed or limited. The J.P.Morgan Securities Plc UK 932 1,044 – – maximum exposure to this risk is the amount of long investments disclosed in the portfolio statement. UBS AG Switzerland 887 988 – – The Fund will be exposed to the credit risk of the Custodian, or any depositary used by the Trustee Total 1,819 2,032 – – regarding cash balances held in accounts with same. In the event of insolvency or bankruptcy of the Custodian or any depositary used by the Trustee, the Fund will be treated as a general creditor of the At 28 February 2017, collateral received from these borrowing counterparties comprised of 100.00% in Trustee. equity securities (29 February 2016, there were no securities on loan).

Management of counterparty credit risk related to the Trustee and Custodian Collateral accepted is non-cash in the form of sovereign debt rated AA or better from approved To mitigate the Fund’s credit risk with respect to the Trustee, the Investment Manager of the Fund governments only, supranational debt obligations rated AAA or better and equity securities listed on a employs specific procedures to ensure that the Trustee employed is a reputable institution and that the recognised exchange. associated credit risk is acceptable to the Fund. The Fund only transacts with counterparties that are Management of counterparty credit risk related to securities lending regulated entities subject to prudential supervision, or with high credit-ratings assigned by international credit-rating agencies. To mitigate this risk, the Fund receives either cash or securities as collateral equal to a certain percentage in excess of the fair value of the securities loaned. The Investment Manager monitors the The long term credit rating of the parent company of the Trustee and Custodian, The Bank of New York fair value of the securities loaned and additional collateral is obtained, if necessary. As at 28 February Mellon Corporation as at 28 February 2017 was A (29 February 2016: A+) (Standard & Poor’s rating). 2017 and 29 February 2016, all non-cash collateral received consists of securities admitted to or dealt on a regulated market. ii) Counterparties All transactions in listed securities are settled/paid for upon delivery using approved brokers. The risk of The Fund also benefits from a borrower default indemnity provided by BlackRock Inc. The indemnity default is considered minimal, as delivery of securities sold is only made once the broker has received allows for full replacement of securities lent. BlackRock Inc. bears the cost of indemnification against payment. Payment is made on a purchase once the securities have been received by the broker. The borrower default. trade will fail if either party fails to meet its obligation. c) Liquidity risk Counterparty credit risk arising on transactions with brokers relates to transactions awaiting settlement. Exposure to liquidity risk Risk relating to unsettled transactions is considered small due to the short settlement period involved Liquidity risk is the risk that the Fund will encounter difficulties in meeting its obligations associated with and the high credit quality of the brokers used. financial liabilities.

Management of counterparty credit risk related to Counterparties Liquidity risk to the Fund arises from the redemption requests of investors and the liquidity of the The Manager monitors the credit rating and financial position of the brokers used to further mitigate underlying investments the Fund is invested in. The Fund’s unitholders may redeem their units on the this risk. close of any daily dealing deadline for cash equal to a proportionate share of the Fund’s Net Asset Value. The Fund is therefore potentially exposed to the liquidity risk of meeting the unitholders’ redemptions iii) Securities lending and may need to sell assets at prevailing market prices to meet liquidity demands. The Fund engages in security lending activities which expose the Fund to counterparty credit risk. The maximum exposure to the Fund is equal to the value of the securities loaned. The Fund invests primarily in companies based in the Asian emerging economies, the securities of which may, in the shorter term experience lower trading volumes and greater price volatility than securities Securities lending transactions entered into by the Fund is subject to a written legal agreement between issued by companies established in developed countries. the Fund and the Securities Lending Agent, BlackRock Advisors (UK) Limited, a related party to the Fund, and separately between the Securities Lending Agent and the approved borrowing counterparty. All non-derivative financial liabilities held by the Fund as at 28 February 2017 and 29 February 2016, Collateral received in exchange for securities lent is transferred under a title transfer arrangement and is based on contractual maturities, fall due within one to three months. delivered to and held in an account with a tri-party collateral manager in the name of BNY Mellon Trust & Management of liquidity risk Depositary (UK) Limited (“the Depositary”) on behalf of the Fund. Collateral received is segregated from Liquidity risk is minimised by holding sufficient liquid investments which can be readily realised to meet the assets belonging to the Fund’s Depositary or the Lending Agent. liquidity demands.

27 BlackRock Asia Fund BlackRock Asia Fund 28 Notes to Financial Statements continued

At times of excessive redemptions the Manager may decide to defer redemptions at any valuation The table below is an analysis of the Fund’s investment assets and investment liabilities measured at fair point to the next valuation point where the requested aggregate redemptions exceed 10 per cent of value at the Balance Sheet date. the Fund’s value. This will therefore allow the Manager to protect the interests of continuing unitholders by allowing the Manager to match the sale of scheme property to the level of redemptions. This should Level 1 Level 2 Level 3 Total reduce the impact of dilution on the Fund. All unitholders who have sought to redeem units at any £000’s £000’s £000’s £000’s valuation point at which redemptions are deferred will be treated consistently and any redemption 28 February 2017 requests received in the meantime will not be processed until the redemption requests that have been deferred to the subsequent valuation points have been processed. Investment assets 49,475 – – 49,475

The Fund’s liquidity risk is managed on a daily basis by the Investment Manager in accordance with Investment liabilities – – – – established policies and procedures in place. The portfolio managers review daily forward looking cash 29 February 2016 reports which project cash obligations. These reports allow them to manage their cash obligations. Investment assets 29,676 – – 29,676 d) Valuation of financial instruments Investment liabilities – – – – The Fund classifies financial instruments measured at fair value using a fair value hierarchy. The fair value hierarchy has the following categories: e) Global exposure Level 1 – Quoted prices for identical instruments in active markets The Manager is required by the COLL Sourcebook to employ a risk management process in respect of A financial instrument is regarded as quoted in an active market if quoted prices are readily and the Fund which enables it to accurately monitor and manage the global exposure from FDIs. regularly available and those prices represent actual and regularly occurring market transactions on an The Manager uses a methodology known as the Commitment Approach in order to measure the global arm’s length basis. The Fund does not adjust the quoted price for these instruments. exposure of the Fund. The Commitment Approach is a methodology that aggregates the underlying Level 2 – Valuation techniques using observable inputs market or notional values of FDIs to determine the degree of global exposure of the Fund to FDIs. This category includes instruments valued using quoted prices in active markets for similar instruments; In accordance with the COLL Sourcebook, global exposure for a fund utilising the Commitment quoted prices for similar instruments in markets that are considered less than active; or other valuation Approach must not exceed 100% of the Fund’s NAV. The calculation of global exposure represents only techniques where all significant inputs are directly or indirectly observable from market data. one element of the Fund’s risk management process and in that respect the Manager will continue to Valuation techniques used for non-standardised financial instruments such as OTC derivatives, report VaR as a market risk measure to the Board of Directors. include the use of comparable recent arm’s length transactions, reference to other instruments that The Fund did not hold any FDIs at 28 February 2017 and 29 February 2016. are substantially the same, discounted cash flow analysis, pricing models and other valuation techniques commonly used by market participants making the maximum use of market inputs and relying as little as possible on entity determined inputs.

Level 3 – Valuation techniques using significant unobservable inputs This category includes all instruments where the valuation techniques used include inputs not based on market data and these inputs could have a significant impact on the instrument’s valuation.

This category also includes instruments that are valued based on quoted prices for similar instruments where significant entity determined adjustments or assumptions are required to reflect differences between the instruments and instruments for which there is no active market.

The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety is determined on the basis of the lowest level input that is significant to the fair value measurement in its entirety. For this purpose, the significance of an input is assessed against the fair value measurement in its entirety. If a fair value measurement uses observable inputs that require significant adjustment based on unobservable inputs, that measurement is a level 3 measurement.

Assessing the significance of a particular input to the fair value measurement in its entirety requires judgement, considering factors specific to the asset or liability. The determination of what constitutes ‘observable’ inputs requires significant judgement by the Investment Manager. The Investment Manager considers observable inputs to be that 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.

29 BlackRock Asia Fund BlackRock Asia Fund 30 Notes to Financial Statements continued

3. Net Capital Gains/(Losses) 5. Expenses

For the year For the year For the year For the year to 28.2.2017 to 29.2.2016 to 28.2.2017 to 29.2.2016 £000’s £000’s £000’s £000’s The net capital gains/(losses) comprise: Payable to the Manager or associates of the Manager: Gains/(losses) on non derivative securities 15,255 (1,324) – Manager’s charge 315 246 Losses on derivative securities (4) (705) – Manager’s charge and other expenses rebates# (15) – Currency losses (46) (23) – Registrar’s fees 62 49 Custodian transaction costs (29) (42) 362 295 Net capital gains/(losses) 15,176 (2,094) Other expenses: – Audit fee 7 7 4. Revenue – Legal & other professional fees – 2 For the year For the year – Safe custody fees 14 8 to 28.2.2017 to 29.2.2016 £000’s £000’s – Trustee’s fees 5 4 Interest from UK bank deposits – 1 26 21 Manager's charge rebates – 48 Total expenses 388 316 Overseas dividends 915 583 # The Fund received rebates from the Manager to ensure the operating charges do not exceed 1.73%, 0.98% and 0.78% for A Accumulation Units, D Accumulation Units and Z class Units respectively. Revenue from short-term money market funds 2 14 Securities lending revenue 4 – 6. Interest Payable and Similar Charges Stock dividends 1 16 For the year For the year UK dividends – 2 to 28.2.2017 to 29.2.2016 Total revenue 922 664 £000’s £000’s Interest on bank overdrafts – 1 Total interest payable and similar charges – 1

31 BlackRock Asia Fund BlackRock Asia Fund 32 Notes to Financial Statements continued

7. Taxation 9. Debtors (a) Analysis of tax charge 28.2.2017 29.2.2016 For the year For the year £000’s £000’s to 28.2.2017 to 29.2.2016 Accrued revenue 120 61 £000’s £000’s Accrued Manager’s charge rebates 15 – Irrecoverable overseas tax 96 58 Amounts receivable for issue of units 577 489 Total tax charge [see note 7(b)] 96 58 Currency sales awaiting settlement 185 27

(b) Factors affecting the tax charge Sales awaiting settlement 217 129 The tax assessed for the year is lower than the standard rate of corporation tax in the UK for an authorised Total debtors 1,114 706 unit trust. The differences are explained below: 10. Cash Equivalents For the year For the year to 28.2.2017 to 29.2.2016 28.2.2017 29.2.2016 £000’s £000’s £000’s £000’s Net revenue before taxation 534 786 Investment in short-term money market funds 700 271 Corporation tax at 20% (29 February 2016: 20%) 107 157 Total cash equivalents 700 271 Effects of: Excess expenses for which no tax relief taken 76 51 11. Other Creditors Irrecoverable overseas tax 96 58 28.2.2017 29.2.2016 £000’s £000’s Non taxable overseas dividends (183) (117) Accrued Audit fee 7 7 Non taxable stock dividends – (91) Accrued FCA fee 1 – Total tax charge [see note 7(a)] 96 58 Accrued Manager’s charge 58 35 At 29 February 2016, the Fund had surplus management expenses of £1,171,000 (29 February 2016: £789,000). It is unlikely that the Fund will generate sufficient taxable profits in the future to utilise these expenses and, therefore, a deferred tax asset of £234,000 (29 February 2016: £158,000) has not been recognised. Accrued Registrar’s fee 23 14 Accrued Safe custody fees 6 2 8. Distributions Accrued Trustee’s fee 1 1 For the year For the year Amounts payable for cancellation of units 510 765 to 28.2.2017 to 29.2.2016 Currency purchases awaiting settlement 185 28 £000’s £000’s Custodian transaction costs 15 15 Interim distribution 367 236 Purchases awaiting settlement 119 13 Final distribution 73 54 Total other creditors 925 880 440 290 Add: Amounts deducted on cancellation of units 29 5 12. Contingent Assets and Liabilities Less: Amounts received on issue of units (31) (21) There were no contingent assets or liabilities at the Balance Sheet date (29 February 2016: Nil). Distributions 438 274

Net revenue after taxation 438 289 Add: Shortfall transfer to capital 1 1 Less: Non distributable stock dividends (1) (16) Distributions 438 274

Details of the interim and final distributions per unit are set out in the tables on page 10.

33 BlackRock Asia Fund BlackRock Asia Fund 34 Notes to Financial Statements continued

13. Related Parties 14. Portfolio Transaction Costs Parties are considered to be related if one party has the ability to control the other party or exercise For the year ended 28 February 2017 significant influence over the other party in making financial or operational decisions. Direct Transaction Costs

The following entities were related parties of the Fund during the year ended 28 February 2017: Transaction Value Commissions Taxes Purchases (excluding derivatives) £000’s £000’s % £000’s % Manager/Registrar: BlackRock Fund Managers Limited Investment Manager: BlackRock Investment Management (UK) Limited Equity instruments 23,846 46 0.19 11 0.05 Investment Adviser: BlackRock Asset Management North Asia Limited Total purchases 23,846 46 11 Securities lending agent: BlackRock Advisors (UK) Limited Total purchases including The ultimate of the Manager, Investment Manager, Investment Adviser and securities transaction costs 23,903 lending agent is BlackRock Inc. (“BlackRock”), a company incorporated in Delaware, USA. PNC Group Inc. (“PNC”) is a substantial shareholder in BlackRock Inc. PNC did not provide any Direct Transaction Costs services to the Fund during the years ended 28 February 2017 and 29 February 2016. Transaction Value Commissions Taxes Sales (excluding derivatives) £000’s £000’s % £000’s % The Manager acts as either principal or agent for the Trustee in respect of all transactions of units of the Fund. The aggregate monies received through issue and paid through cancellation of units are Equity instruments 19,415 25 0.13 29 0.15 disclosed in the Statement of Change in Net Assets Attributable to Unitholders and note 8. Any amounts Total sales 19,415 25 29 due to or from the Manager at the year end are disclosed in notes 9 and 11. Management fees and Total sales net of transaction costs 19,361 registration fees paid to the Manager are shown in note 5. The balances due at the year end in respect of these fees are shown in note 11. Securities lending revenue earned by the Fund is disclosed in note 4. Total transaction costs 71 40 For holdings in Institutional Cash Series plc (“ICS”), there will be no initial charges or redemption charges payable on investments in the Fund, however, duties and charges may apply. ICS will be subject Total transaction costs to fees and expenses which may include fixed management fees, performance fees, administration fees as a % of average net assets 0.17% 0.10% and custodial fees. For the year ended 29 February 2016 At 28 February 2017 and 29 February 2016, none of the unitholders: Direct Transaction Costs (i) are funds managed by the BlackRock Group or are affiliates of BlackRock Inc. or Transaction Value Commissions Taxes (ii) are investors, other than those included in (i) above, who held 51% or more of the voting units Purchases (excluding derivatives) £000’s £000’s % £000’s % in issue in the Fund and are as a result, considered to be related parties to the Fund. Equity instruments 35,412 41 0.11 22 0.06 All related party transactions were carried out at arm’s length in the ordinary course of business. The Total purchases 35,412 41 22 terms and returns received by the related parties in making the investments above were no more Total purchases including favourable than those received by other investors investing into the same unit class. transaction costs 35,475

Direct Transaction Costs

Transaction Value Commissions Taxes Sales (excluding derivatives) £000’s £000’s % £000’s % Equity instruments 42,611 45 0.11 71 0.17 Total sales 42,611 45 71

Total sales net of transaction costs 42,495

Derivative transaction costs 11 –

Total transaction costs 97 93

Total transaction costs as a % of average net assets 0.30% 0.28%

35 BlackRock Asia Fund BlackRock Asia Fund 36 Notes to Financial Statements continued Statement of Manager’s Responsibilities

14. Portfolio Transaction Costs continued The Manager is required by the rules of the COLL Sourcebook to prepare the financial statements for The above analysis covers direct transaction costs incurred by the Fund during the year. However it is each financial year. These financial statements must be prepared in accordance with generally accepted important to understand the nature of other transaction costs associated with different investment asset accounting standards in the United Kingdom to give a true and fair view of the state of affairs of the Fund at classes and instruments types. the year end and of the net revenue and net gains/(losses) for the year.

Transactions in money market instruments to manage the Fund’s daily liquidity position are excluded The financial statements should comply with the disclosure requirements of the Statement of Recommended from the analysis. Practice (the “SORP”) for Authorised Funds issued by the Investment Management Association (subsequently Separately identifiable direct transaction costs (such as commissions and taxes) are attributable to the The Investment Association) and must comply with any relevant provisions of the Trust Deed. Fund’s purchase and sale of equity instruments. Additionally, for equity shares there is a dealing spread cost (the difference between the buying and selling prices) which will be incurred on purchase and sale The Manager is responsible for keeping such accounting records as are necessary to enable it to ensure that transactions. the financial statements comply with the COLL Sourcebook, the SORP and the Trust Deed.

At the Balance Sheet date the average portfolio dealing spread (difference between bid and offer prices of all investments expressed as a percentage of the offer price value) was 0.21% (29 February 2016: 0.32%).

15. Units in Issue The movement in units in issue for the year ended 28 February 2017 is as follows:

A Accumulation D Accumulation Z Income Z Accumulation Units Units Units Units Balance at the beginning of the year 414,241 28,524,143 100 367,630 Issued during the year 166,868 11,549,535 1,520,380 83,399 Cancelled during the year (268,627) (9,054,554) – (367,530) Balance at the end of the year 312,482 31,019,124 1,520,480 83,499

Revenue is allocated each day pro rata to the capital value of assets attributable to each class and taxation is computed by reference to the net revenue after expenses attributable to each class. The distribution per unit class is given in the distribution tables. All unit classes have the same rights on winding up.

16. Post Balance Sheet Events There have been no significant events subsequent to the year end, which, in the opinion of the Manager, may have had an impact on the financial statements for the year ended 28 February 2017.

37 BlackRock Asia Fund BlackRock Asia Fund 38 Statement of the Depositary’s Responsibilities in Respect of the Fund and Report of the Depositary to the Unitholders of the Fund for the Year Ended 28 February 2017

The Depositary in its capacity as Trustee of the Fund must ensure that the Fund is managed in accordance Independent Auditor’s Report to the Unitholders of BlackRock Asia Fund with the Financial Conduct Authority’s Collective Investment Schemes Sourcebook, the Financial Services We have audited the financial statements of BlackRock Asia Fund (the “Fund”) for the year and Markets Act 2000, as amended, (together “the Regulations”), the Trust Deed and Prospectus (together ended 28 February 2017 which comprise the Statement of Total Return and the Statement “the Scheme documents”) as detailed below. of Change in Net Assets Attributable to Unitholders together with the Balance Sheet, the accounting policies of the Fund, the related notes and the Distribution Tables. The financial The Depositary must in the context of its role act honestly, fairly, professionally, independently and in the reporting framework that has been applied in their preparation is applicable law and United interests of the Fund and its investors. Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS102 ‘The Financial Reporting Standard’ applicable to the UK and Republic of The Depositary is responsible for the safekeeping of all the custodial assets and maintaining a record of all Ireland. other assets of the Fund in accordance with the Regulations. This report is made solely to the unitholders of the Fund, as a body, pursuant to Paragraph The Depositary must ensure that: 4.5.12 of the rules of the Collective Investment Schemes Sourcebook of the Financial Conduct Authority. Our audit work has been undertaken so that we might state to the unitholders those • the Fund’s cash flows are properly monitored and that cash of the Fund is booked in cash accounts in matters we are required to state to them in an auditor’s report and for no other purpose. To the accordance with the Regulations; fullest extent permitted by law, we do not accept or assume responsibility to anyone other than • the sale, issue, repurchase, redemption and cancellation of units are carried out in accordance with the the Fund and the unitholders as a body, for our audit work, for this report, or for the opinions Regulations; we have formed.

• the value of units of the Fund are calculated in accordance with the Regulations; Respective responsibilities of the Manager and Auditor • any consideration relating to transactions in the Fund’s assets is remitted to the Fund within the usual time As explained more fully in the Manager’s responsibilities statement set out on page 38, the limits Manager is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. • the Fund’s income is applied in accordance with the Regulations; and

• the instructions of the Authorised Fund Manager (“the AFM”), which is the UCITS Management Company, Our responsibility is to audit and express an opinion on the financial statements in accordance are carried out (unless they conflict with the Regulations). with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors. The Depositary also has a duty to take reasonable care to ensure that the Fund is managed in accordance with the Regulations and the Scheme documents of the Fund in relation to the investment and borrowing Scope of the audit of the financial statements powers applicable to the Fund. An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from Having carried out such procedures as we considered necessary to discharge our responsibilities as material misstatement, whether caused by fraud or error. This includes an assessment of: Depositary of the Fund, it is our opinion, based on the information available to us and the explanations provided, that, in all material respects the Fund, acting through the AFM: • whether the accounting policies are appropriate to the Fund’s circumstances and have been consistently applied and adequately disclosed; (i) has carried out the issue, sale, redemption and cancellation, and calculation of the price of the Fund’s • the reasonableness of significant accounting estimates made by the Manager; and units and the application of the Fund’s income in accordance with the Regulations and the Scheme documents of the Fund; and • the overall presentation of the financial statements.

(ii) has observed the investment and borrowing powers and restrictions applicable to the Fund in In addition, we read all the financial and non-financial information in the Annual Report to accordance with the Regulations and the Scheme documents of the Fund. identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

BNY Mellon Trust & Depositary London (UK) Limited 27 April 2017

39 BlackRock Asia Fund BlackRock Asia Fund 40 Supplementary Information

Efficient Portfolio Management Techniques The Manager may, on behalf of the Fund and subject to the conditions and within the limits laid down by the Financial Conduct Authority and the Prospectus, employ techniques and instruments relating to transferable Opinion on the financial statements securities, including investments in OTC FDIs provided that such techniques and instruments are used In our opinion: for efficient portfolio management purposes or to provide protection against exchange risk or for direct investment purposes, where applicable. • The financial statements give a true and fair view of the financial position of the Fund as at 28 February 2017 and of the net revenue and the net capital gains on the scheme property Securities Lending of the Fund for the year then ended; and The total value of securities on loan as a proportion of the Fund’s NAV and total lendable assets, as at the • The financial statements have been properly prepared in accordance with United Kingdom Balance Sheet date, is 3.60% and 5.24% respectively. Generally Accepted Accounting Practice. Total lendable assets represents the aggregate value of assets forming part of the Fund’s securities lending programme. This excludes any assets held by the Fund that are not considered lendable due to any market, Opinion on other matters prescribed by the rules of the Collective Investment Schemes regulatory, investment or other restriction. Sourcebook of the Financial Conduct Authority In our opinion: The total income earned from securities lending transactions is split between the relevant Fund and the Securities Lending Agent. The Fund receives 62.5% while the Securities Lending Agent receives 37.5% of • the financial statements have been properly prepared in accordance with the Statement of such income, with all operational costs borne out of the Securities Lending Agent’s share. Income earned Recommended Practice relating to Authorised Funds, the rules of the Collective Investment during the year by the Fund from securities lending transactions is disclosed in the notes to the financial Schemes Sourcebook of the Financial Conduct Authority and the Trust Deed; statements. • the information given in the Manager’s report for the financial year for which the financial statements are prepared is consistent with the financial statements; The value of securities on loan and associated collateral analysed by counterparty, as at 28 February 2017, • there is nothing to indicate that proper accounting records have not been kept or that the is disclosed in the notes to the financial statements. financial statements are not in agreement with those records; and All securities on loan have an open maturity tenor as they are recallable or terminable on a daily basis. • we have received all the information and explanations which, to the best of our knowledge and belief, are necessary for the purposes of our audit

Ernst & Young LLP Edinburgh Statutory Auditor 27 April 2017

41 BlackRock Asia Fund BlackRock Asia Fund 42 Supplementary Information continued

Collateral The following table lists the ten largest issuers by value of non-cash collateral received by the Fund by way of The Fund engages in activities which may require collateral to be provided to a counterparty (“collateral title transfer collateral arrangement across securities lending transactions as at 28 February 2017. posted”) or may hold collateral received (“collateral received”) from a counterparty. Issuer Value % of the Fund’s NAV The following table provides an analysis by currency of the cash and underlying non-cash collateral received/posted by way of title transfer collateral arrangement by the Fund, in respect of securities lending £000’s transactions, as at 28 February 2017. Vodafone Group Plc 72 0.14 China Construction Bank Corp 46 0.09 Cash collateral Cash collateral Non-cash collateral Non-cash collateral China Merchants Bank Ltd 45 0.09 Currency received posted received posted Petrochina Ltd 43 0.09 £000’s £000’s £000’s £000’s Ping AN Insurance (Group) 39 0.08 Securities lending transactions Geely Automobile Holdings Ltd 37 0.07 CAD – – 3 – China Mobile Ltd 37 0.07 CHF – – 83 – CHN – – 665 – TAL Education Group 36 0.07 Euro – – 161 – Industrial and Commercial Bank of China 35 0.07 GBP – – 372 – Lonza Group Ag 31 0.06 HKD – – 168 – Other issuers 1,611 3.19 JPY – – 129 – Total 2,032 4.02 NOK – – 24 – SEK – – 26 – No securities collateral received from a single issuer, in relation to efficient portfolio management, has SGD – – 44 – exceeded 20% of the Fund’s NAV at the year end date. USD – – 357 – The Fund has not been fully collateralised in securities issued or guaranteed by an EU member state at the Total – – 2,032 – year end date.

Non-cash collateral received by way of title transfer collateral arrangement in relation to securities lending transactions cannot be sold, re-invested or pledged.

Collateral received in respect to securities lending of £2,032,000 was in the form of equity, registered on a recognised equity index with an open maturity tenor.

A recognised equity index contains at least 20 equities where no single equity represents more than 20% of the total index and no five equities combined represent more than 60% of the total index.

As at 28 February 2017, all non-cash collateral received by the Fund in respect of securities lending transactions is held by the Fund’s Depositary (or through its delegates).

43 BlackRock Asia Fund BlackRock Asia Fund 44 About us

BlackRock is a premier provider of asset management, risk management, and advisory services to institutional, intermediary, and individual clients worldwide. As of 31 March 2017, the fi rm manages £4.35 trillion across asset classes in separate accounts, mutual funds, other pooled investment vehicles, and the industry-leading iShares® exchange-traded funds.

Through BlackRock Solutions®, the fi rm offers risk management and advisory services that combine capital markets expertise with proprietarily-developed analytics, systems, and technology. Through BlackRock Solutions, the Firm provides risk management and enterprise investment services for over 200 clients

BlackRock serves clients in North and South America, Europe, Asia, Australia, Africa, and the Middle East. Headquartered in New York, the fi rm maintains offi ces in over 30 countries around the world.

Want to know more?

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