annual sHORT report BlackRock UK Focus Fund

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

This Annual Short Report for the BlackRock UK Focus 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. PF Accumulation FF Accumulation X Accumulation D Accumulation Summary of Performance over the Period Units# Units# Units‡ Units§ The Fund returned 8.9%* over the period from 1 March 2014 to 28 February 2015, outperforming its Highest Lowest Highest Lowest Highest Lowest Highest Lowest benchmark, the FTSE All-Share Index, which returned 5.6%. Over the six month period to 28 February Offer Bid Offer Bid Offer Bid Offer Bid Price Price Price Price Price Price Price Price 2015, the Fund returned 8.4%* compared with its benchmark which returned 4.1%. Calendar Year p p p p p p p p Fund Managers’ Commentary 2015* 158.0 135.3 162.3 138.5 156.5 14 0.1 151.8 136.0 UK equities experienced plenty of ups and downs over the year under review, largely in response to 2014 147.5 124.5 150.6 126.7 145.0 127.9 140.9 124.7 changing interest rate expectations. Low bond yields led investors to favour bond proxy companies – i.e. companies that deliver consistent earnings growth. Later in the period, the European Central 2013 141.4 112.9 143.3 114.2 137.0 113.8 134.5 112.7 Bank’s long-awaited announcement of a massive programme of spending in support of its economy 2012 119.9 98.82 121.8 100.0 115.4 99.22 113.0 106.7 (what is known as quantitative easing (“QE”)) improved investors’ confidence, while companies whose earnings are generated in dollars benefited from US economic growth. 2011 106.8 92.77 107.7 93.54 101.4 96.45 N/A N/A Significant contributors to our outperformance included Reed Elsevier, Next, Compass, British * To 28 February. # PF Accumulation and FF Accumulation classes commenced October 2011. ‡ X Accumulation class commenced November 2011. § D Accumulation class commenced November 2012. American Tobacco and Benckiser, which continued to deliver earnings growth and attracted income-hungry investors with their consistent payment of dividends. In addition, the Fund’s trades in pharmaceutical company Shire helped returns following a proposed, but ultimately abortive, takeover Income (Net Accumulations) attempt by US company Abbvie. PF Accumulation FF Accumulation X Accumulation D Accumulation # # ‡ § Detractors from performance included Hargreaves Lansdown, which fell as the fees it charges its Units Units Units Units customers came under greater pressure. Banking group also weighed on returns, Calendar Year Pence per Unit Pence per Unit Pence per Unit Pence per Unit after it announced disappointing earnings results. 2015* 0.0000 1.14 9 5 1.7116 0.6827 In the second half of the period, the Fund benefited from an underweight position relative to the index 2014 2.6875 3.3207 4.3389 3.18 4 3 in the oil and gas sector following the sharp fall in the oil price. Meanwhile, easyJet rose strongly due to the impact of lower oil prices on fuel costs. Elsewhere, Essentra,which supplies plastic and fibre 2013 2.9484 3.7278 4.8282 2.1228 products, beat expectations after announcing a strong increase in full-year earnings. . 2012 0.0005 1.0000 1.0740 N/A

In terms of transactions, we bought new positions in AstraZeneca and and added * To 30 April. # PF Accumulation and FF Accumulation classes commenced October 2011. to existing holdings in Reed Elsevier and easyJet. Sales included Standard Chartered and Tullow Oil, ‡ X Accumulation class commenced November 2011. § D Accumulation class commenced November 2012. with reductions to Next, , Shire and BG Group. US economic activity remains strong, in contrast to Europe where it is still subdued. The QE Unit Price Summary announcement has improved investor sentiment but we don’t yet know what effect it will have on Unit Price as at Unit Price as at economic growth. In a world of low but positive global economic growth, we seek those companies Unit Class 28 February 2015 28 February 2014 that can meet earnings growth expectations, drive improvements organically and come with a clear PF Accumulation 149.6p 137.5p strategy on how to deploy the cash that they generate. FF Accumulation 153.7p 139.8p March 2015 X Accumulation 155.6p 140.5p * Performance figures quoted are based on bid-to-bid dealing prices (the price at which units are sold) and are not the same as the net asset value reported in the financial statements which is at close of business. Performance is calculated net of fees and reported for D Accumulation 151.0p 137.8p the Fund’s class PF Accumulation Units.

Distributions Payable

The final accumulation distribution payable on 30 April 2015 is 0.0000p net per PF Accumulation accumulation unit (30 April 2014: 0.3736p net per accumulation unit). The final accumulation distribution payable on 30 April 2015 is 1.1495p net per FF Accumulation accumulation unit (30 April 2014: 0.9919p net per accumulation unit). The final accumulation distribution payable on 30 April 2015 is 1.7116p net per X Accumulation accumulation unit (30 April 2014: 1.4892p net per accumulation unit). The final accumulation distribution payable on 30 April 2015 is 0.6827p net per D Accumulation accumulation unit (30 April 2014: 0.9421p net per accumulation unit).

2 BlackRock UK Focus Fund BlackRock UK Focus Fund 3 Fund Information Portfolio Information

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

The aim of the Fund is to achieve long-term capital growth for investors. The Fund invests primarily in % of Fund Value a concentrated portfolio of shares of companies incorporated or listed in the UK. The Fund may also invest in collective investment schemes. Derivatives may be used for efficient portfolio management Next 8.88 purposes only. British American Tobacco 8.06 Risk Profile Reed Elsevier 7.79 The Fund is exposed to movements in UK stock markets which may cause the value of the Fund to fall or rise. Smaller companies which can be more unpredictable and can be more difficult to buy and Essentra 7.32 sell, can also cause the value of the Fund to fall or rise. Wolseley 5.44 Fund Facts Five Largest Investments at 28 February 2014 Fund Managers Luke Chappell & Imran Sattar % of Fund Value Establishment Date 31 October 2011 Benchmark FTSE All-Share Index Next 9.26 Assets Under Management £194,275,179 British American Tobacco 7.38 Income Allocation Dates 30 April & 31 October Essentra 6.89 Accounting Dates Last day of February & 31 August BG 4.99

Ongoing Charges Wolseley 4.85 The ongoing charges figures are based on expenses for the relevant period. These figures may vary from year to year. Classification of Investments

Unit Class 1.3.2014 to 28.2.2015 1.12.2012 to 28.2.2014†  28 February 2015 Banks 28 February 2014 PF Accumulation 0.42% 0.42%  Chemicals FF Accumulation 0.77% 0.77% Financial Services X Accumulation 0.03% 0.07% D Accumulation 0.88% 0.82% General Retailers

† Ongoing charges figures are based on annualised expenses for the period ended 28 February 2014. In addition to the above, the Household Goods & Home Construction Fund is charged a performance fee. A performance fee of 20% is payable to the Manager on any outperformance of the Fund’s benchmark in respect of PF Accumulation units only. The performance fee charged for the period with respect to PF Accumulation units was £24 representing 1.5% of the average Net Asset Value (NAV) for the period (28 February 2014: £14 with respect to PF Industrial Engineering Accumulation units representing 0.02% of the average NAV). Please note the annual registrar fee was reduced during the year from 0.05% to an annual fee of £12 plus VAT per unitholder in respect to class X Accumulation units and was increased from 0.05% to Media 0.15% in respect to D Accumulation units. Mining Risk and Reward Profile Oil & Gas Producers Lower risk Higher risk Typically lower rewards Typically higher rewards Pharmaceuticals & Biotechnology Unit Class Real Estate Investment & Services PF Accumulation 1 2 3 4 5 6 7 Short-term Money Market Funds FF Accumulation 1 2 3 4 5 6 7 X Accumulation 1 2 3 4 5 6 7 Support Services

D Accumulation 1 2 3 4 5 6 7 Tobacco The risk indicator was calculated incorporating historical or simulated historical data and may not be a reliable Travel & Leisure indication of the future risk profile of each unit class. The risk category shown is not guaranteed and may change 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. During the period, the risk indicator of class FF Accumulation changed from level 6 to 5 due to a decline in market volatility. 0% 2% 4% 6% 8% 10% 12% % of the Fund

4 BlackRock UK Focus Fund BlackRock UK Focus Fund 5 All financial investments involve an element of risk. Therefore, 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