Value Assessment As of June 2020 Contents Chairman’s Letter 3

BlackRock’s Commitment to Delivering Value 6

Section 1 Our Approach to Assessing Value 7

Section 2 Value Assessment Criteria 10

Section 3 Value Assessment Results 21

Section 4 Fund Pages 25

Glossary of Terms 98

Value Assessment | As of June 2020 | 2 Chairman’s Letter

Dear Investors,

As Chairman of BlackRock Fund Managers Limited (BFM), and on behalf of my fellow Board members, I welcome you to our first Value Assessment report.

We understand how important it is to plan your financial future and that, as investors, you want the peace of mind that every pound of pension, savings and retirement investment you entrust to BlackRock Graham Bamping delivers value. We have had your best interests at heart throughout Non-Executive our evaluation of the 121 funds covered in this report. In conjunction Director and Chairman of the with BlackRock, we take seriously the responsibility of helping more Board of BlackRock Fund Managers people achieve financial well-being. Limited

The BFM Board takes an active role in overseeing the launch of new funds and managing existing ones. We seek to ensure that the investment objectives, performance and associated fees of our funds remain relevant and competitive. The Value Assessment is an extension of this responsibility. It is also an important way to achieve further transparency and help you determine whether the funds you have invested in are providing value for money.

The funds assessed in this report span actively managed and index investment strategies across a variety of asset classes including equity, fixed income, multi-asset and cash. They encompass a range of outcomes, such as generating income, controlling volatility or targeting a retirement date. We focus on delivering sustainable returns and providing greater transparency to help investors understand what they are buying.

For more than two years, we have worked with BlackRock to define a way to determine value and create a robust, multi-staged assessment process. To validate our approach, the BFM Board also engaged Broadridge Financial Solutions and Fitz Partners to provide independent analysis. We have had extensive dialogue with BlackRock throughout on the methodology of our assessment, its

Value Assessment | As of June 2020 | 3 findings and the areas identified for improvement. The key findings include:

Chairman’s Letter 1. The very large majority of funds assessed, representing 99% of assets under management within our UK authorised funds, deliver value.

2. 73% of unit classes in our UK authorised funds are priced at the median, or are cheaper than their respective peers.1

3. This year, we delivered savings of £3 million to investors by moving approximately 14,000 who were eligible to lower charging unit classes of the same fund. Most of these conversions were experienced by direct investors and were not explicitly required under our interpretation of Financial Conduct Authority (FCA) requirements. Furthermore, over the past 12 months, we passed on savings of £1 million to investors through fee caps across 38 funds.

While our results demonstrate that the very large majority of our funds are delivering value, we are not complacent. We continually aim to enhance the value we provide to investors.

The following pages detail our approach, findings and actions. We look forward to providing this assessment for you annually.

Graham Bamping Non-Executive Director and Chairman of the Board of BlackRock Fund Managers Limited

Board of Directors of BlackRock Fund Managers Limited (BFM)

Graham Bamping Adrian Lawrence Non-Executive Director & Board Chairman Executive Director Martin Cook Helga Mepham Executive Director Executive Director Iain Cullen Louise Watkins Non-Executive Director Executive Director Robert Hayes Theodora Zemek Executive Director Non-Executive Director

1 Comparison of ongoing charges relative to comparable unit class of direct peers in their assigned Investment Association or Morningstar fund sector

Value Assessment | As of June 2020 | 4 Helping our UK clients meet their investment objectives is a huge “responsibility. My colleagues and I are immensely proud to help individuals, pension schemes and charities invest for the future. The assets we are entrusted to manage impact the lives of millions of British citizens. Maintaining their trust demands that we continue delivering value to them.”

Sarah Melvin BlackRock Head of UK

Value Assessment | As of June 2020 | 5 BlackRock’s Commitment to Delivering Value

BlackRock’s purpose is to help more and more people experience financial well-being. We are dedicated to serving our clients in the UK which include BlackRock financial advisers helping individuals invest for the future, pension schemes leverages its securing retirement for their workers and charities trying to make the world better. We have a strong sense of duty to deliver long-term value to UK broad-based investors. platform, Our principles provide a shared understanding of who we are, what we stand diverse for and how we conduct ourselves. These principles are deeply embedded in our culture and how we evaluate our performance and service: investment capabilities, We are a fiduciary: because we are stewards of our fund investors’ money, your goals are our goals. best-in-class 01 technology, and We are passionate about performance: because our rigorous risk fund investors expect the best from us, we demand the management 02 best of ourselves. practices to

We are One BlackRock: everything we offer fund deliver value. investors results from collaboration among diverse teams 03 spanning a global platform.

We are innovators: because our fund investors’ needs evolve, we strive to anticipate change and challenge the 04 status quo.

BlackRock leverages its broad-based platform, pairing diverse investment capabilities with best-in-class technology, data-driven insights and rigorous risk management practices to deliver value to investors. We believe that portfolios integrating environmental, social and governance (ESG) factors can provide better long-term, risk-adjusted returns. Our research tells us that these factors can affect economic growth, asset values and financial markets. Sustainability is integral to the way BlackRock manages risk, constructs portfolios and designs products. Our Investment Stewardship team engages with companies to advocate the sound governance and business practices that drive sustainable, long-term financial returns. This year, in particular, has shown us that these characteristics bring increased resilience amid uncertainty and market volatility.

Our purpose statement, our principles and our focus on sustainability and investment stewardship play a fundamental role in how BlackRock continually strives to provide value for investors.

Value Assessment | As of June 2020 | 6 Section 1

Our Approach to Assessing Value

Value Assessment | As of June 2020 | 7 Overview The FCA requires fund managers like BFM to make an annual assessment Of our 121 funds of whether their UK authorised funds provide value for investors. Our 109 delivered value assessment considers fund performance, costs and charges, and service quality, concluding with an evaluation of whether investors receive value. The FCA regulations set out seven criteria against which we must measure and report the value achieved:

1. Performance: are funds performing against their investment objectives? 2. Comparable Market Rates: are funds priced similarly to competitors? 3. Comparable Services: are funds priced reasonably compared to BlackRock products with similar investment strategies?

4. Authorised Fund Manager (AFM) Costs: are fees charged to investors reasonable and appropriate? 7 delivered value plus action 5. Economies of Scale: are economies of scale generated and passed on to investors? 1 did not deliver value 6. Quality of Service: does the range and quality of service offer value? 7. Classes of Units: are investors in the cheapest available unit class based 4 too new to rate on their characteristics?

For many years, BFM has had processes for reviewing our funds’ performance, pricing and services to ensure they remain relevant and in line with investors’ expectations. The FCA requirements on value assessment reporting have reinforced this discipline.

Our Process for Determining Value We understand that, for investors, the most important factors when choosing to invest in funds are performance, costs and services. To determine whether funds delivered value, we put greatest emphasis on investment performance, while also considering costs and service quality. Our final assessment for each fund derives from analysis that takes into account quantitative and qualitative factors.

Throughout the process, we worked closely with Broadridge Financial Solutions and Fitz Partners to provide independent analysis. We engaged BlackRock’s Global Product Group (GPG) to prepare this Value Assessment report and BlackRock’s Risk & Quantitative Analysis (RQA) group to review and refine our methodology. GPG oversees BlackRock’s product development and governance, while RQA oversees the investment risk of portfolios managed by BlackRock and develops analytics and standards to measure performance.

Value Assessment | As of June 2020 | 8 Summary of Results We have determined that BFM provides value to investors in our UK “While our authorised funds. Across the 121 funds assessed, we concluded that: results 109 funds deliver value with no action required demonstrate

7 funds deliver value with action initiated to improve value further that the very

1 fund did not consistently deliver value and was liquidated in August large majority 2020 as part of our standard fund review process of our funds 4 actively managed funds had performance track records of less than are delivering one year, so were deemed too new to rate. value, we After this assessment, actions taken to improve value include the are not implementation of fee reductions on unit classes in two funds and the introduction of enhanced performance monitoring on unit classes in five complacent. funds. Details on individual funds and actions taken can be found in Section 4: Fund Pages. We continually aim to enhance Furthermore, this year we delivered savings of £3 million to investors by moving those who were eligible to lower charging unit classes of the same the value we fund. Most of these conversions were experienced by direct investors and provide.” were not explicitly required under our interpretation of FCA requirements. Graham Bamping, Non-Executive Director & Chairman of the Board of BlackRock Fund Managers Limited

Value Assessment | As of June 2020 | 9 Section 2

Value Assessment Criteria

Value Assessment | As of June 2020 | 10 Performance BlackRock is passionate about performance and delivering on investment promises to investors.

Our Evaluation Method Working in conjunction with BlackRock, the BFM Board applied quantitative BlackRock and qualitative tests to assess whether funds delivered value through focuses on risk performance. We focused on performance after – or net of – fees. To analyse the funds’ performance against comparable funds, we considered broad management sector data from third parties such as Morningstar and the Investment and investment Association (IA). We differentiated between active, index and outcome- oriented strategies. discipline to deliver Active strategies: We evaluated each fund’s net-of-fees performance relative to its benchmark over medium (three-year) and long-term (five- high-quality year) periods. This approach considers our products’ investment objectives over the time horizon usually associated with a full market performance. cycle. We also evaluated fund performance relative to peers and internal risk metrics.

Index strategies: We evaluated each fund’s net-of-fees performance relative to its benchmark index over one year. For index strategies, we consider one year an appropriate horizon, owing to the importance of tight tracking against the benchmark. Where necessary, we completed additional performance attribution analysis.

Outcome-oriented strategies: We evaluated each fund against its stated outcome-oriented objectives (e.g. income-generating, volatility managed, target date) and examined its net-of-fees performance relative to its benchmark. Where appropriate, we evaluated funds relative to their peer groups.

Our Conclusions We found that the very large majority of our UK authorised funds and unit classes deliver value. If a fund did not perform well, we have noted that in Section 4: Fund Pages. Furthermore, we have included commentary on drivers of underperformance and, where necessary, implemented enhanced performance monitoring to ensure that the fund continues to deliver value in the future.

Four of our actively managed funds had performance track records of less than one year, so were deemed too new to rate.

Value Assessment | As of June 2020 | 11 BlackRock’s Continued Commitment BlackRock focuses on risk management and investment discipline to deliver high-quality performance. Thirty years ago, BlackRock developed its risk and portfolio construction technology, Aladdin, which enables portfolio management teams to manage risk better and make more informed investment decisions. Over 3,000 risk factors are calculated on Aladdin every day.

Almost two decades ago, BlackRock established a dedicated Risk & Quantitative Analysis (RQA) function, that today includes over 270 professionals who partner with portfolio management teams to monitor and analyse risk. RQA provides oversight, customised daily reporting of risk levels and scenario analysis at the portfolio and security level.

Every quarter, the investment performance of all UK authorised funds is reviewed by Performance Review Committees, which include representatives from the portfolio management teams and RQA. BlackRock’s Investment Oversight function prepares performance reports and presents them to the BFM Board quarterly. If a fund experienced sustained underperformance, the BFM Board would require the investment process and team resources to be reviewed.

Value Assessment | As of June 2020 | 12 Comparable Market Rates BlackRock offers a broad suite of unit classes priced to meet investors’ needs and that match the objectives, operational requirements and services of competitors.

Our Evaluation Method Working with BlackRock, the BFM Board examined the costs of our funds 73% of unit relative to those of similar funds offered by competitors. We focused on the classes in our Ongoing Charges Figure (OCF), which is referenced in Key Investor Information Documents and reflects funds’ total annual costs and the UK authorised impact of any shared economies of scale. funds are

Individual unit class charges were evaluated in two distinct ways. The first priced at the was against broad peer groups based on standard categories defined by the median, or are IA or Morningstar. If a unit class did not have a standard category assigned by one of these third-party providers, Fitz Partners recommended usage of cheaper than the relevant IA broad peer group. The second evaluation was against custom peer groups. Custom peer groups were selected by Broadridge and defined their respective as fewer than 10 comparable funds with similar management styles, peers. investment objectives, size and availability to intended investors. If a unit class appeared expensive relative to its broad peer group, it was further reviewed against its custom peer group.

Our Conclusions We found that the very large majority of our funds and unit classes deliver value to investors. We ensure that our funds are competitively priced by assessing management charges regularly, through BlackRock’s negotiation of favourable terms from third-party providers and by an approach to pricing funds at scale through fee caps.

If a fund was not priced competitively relative to peers, we have noted it in Section 4: Fund Pages. We have also included commentary on what drove those results and have taken action, where necessary.

BlackRock’s Continued Commitment The BFM Board will continue to work with BlackRock to assess the competitiveness of funds relative to similar products in the market. If we conclude that costs are not justified, we will take action to ensure that investors are charged an appropriate price for services received.

Value Assessment | As of June 2020 | 13 Comparable Services BlackRock delivers investment services across a range of vehicles, including funds and segregated mandates, to meet investors’ individual needs.

Our Evaluation Method BlackRock investors access investment strategies in many ways, including As part of through funds and segregated mandates. Choice of investment structure is our pricing normally driven by the size of the investment and the level and type of service required. Working in conjunction with BlackRock, the BFM Board governance, considered the following factors in its evaluation: the BFM Board Consistency of Unit Class Pricing: We reviewed the costs and charges of regularly each unit class in each fund relative to other unit classes in the same BlackRock fund. assesses how

Costs Relative to Segregated Mandates: For funds where there was a competitive segregated mandate managed with a similar investment strategy, we our funds assessed any additional services and benefits provided to investors in the funds relative to the segregated mandate. We then determined whether are relative the additional costs and charges were justified in the context of the to similar additional services. BlackRock Costs Relative to Comparable Products: We evaluated whether each fund was priced appropriately relative to BlackRock European domiciled funds products and with similar investment strategies if such a comparison was possible. services. Our Conclusions We concluded that the very large majority of our funds and unit classes deliver value to investors. If a fund, or individual unit class, was not priced competitively relative to comparable BlackRock products and services, it is noted in Section 4: Fund Pages. We have also included commentary on what drove those results and taken action where necessary.

BlackRock’s Continued Commitment BlackRock’s culture is one which puts clients first, and the firm has procedures in place to ensure they are treated fairly. BlackRock’s Global Product Group (GPG) oversees product launches and fund range management. When products are being developed, GPG ensures that target customers are identified, pricing is established and fund documentation is reviewed.

As part of our pricing governance, the BFM Board regularly assesses how competitive our funds are relative to similar BlackRock products and services. If we conclude that costs are not justified, we will make sure that investors are charged an appropriate price for services received.

Value Assessment | As of June 2020 | 14 Authorised Fund Manager Costs BlackRock’s deliberate approach to pricing ensures fees are aligned to investors’ risk/return expectations.

Our Evaluation Method Working in conjunction with BlackRock, the BFM Board examined the The BFM Board services and benefits associated with different unit classes. We focused on will continue the Ongoing Charges Figure (OCF), as referenced in Key Investor Information Documents, which reflects funds’ total annual costs and the to partner with impact of any shared economies of scale. Our analysis looked at the BlackRock to following factors for our unit classes and funds: ensure that Cost structure, including management charges and operational costs funds’ costs Costs and charges relative to competitors and charges Costs and charges relative to BlackRock products and services are aligned Application of fee caps and waivers. to investors’ Our Conclusions expectations of We concluded that the very large majority of our funds and unit classes deliver value to investors. If a fund, or individual unit class, was not priced risk and return. appropriately for the services provided, it is noted in Section 4: Fund Pages. We have also included commentary on what drove those results and taken action where necessary.

BlackRock’s Continued Commitment The BFM Board will continue to partner with BlackRock to ensure that funds’ costs and charges are aligned to investors’ expectations of risk and return. If we conclude that costs are not justified, we will act to ensure that investors are charged an appropriate price for services received.

Value Assessment | As of June 2020 | 15 Economies of Scale BlackRock harnesses its global footprint to achieve scale and share cost savings with fund investors.

Our Evaluation Method Working in conjunction with BlackRock, the BFM Board examined how BlackRock achieves scale through its global footprint and how much our fund investors benefit from the resulting efficiencies. We focused on three key ways in which BlackRock shares economies of scale:

Reinvestment: As a global multi-line business, BlackRock reinvests substantial amounts of capital annually into each of its centralised operational, technology and investment platforms. While centralised costs are not directly attributed to individual funds, we assessed how BlackRock’s scale can deliver benefits and enrich investors’ experience through better trade execution, robust risk management and compliance, strengthened investment teams and capabilities, and improved investor servicing.

Pricing Power for External Charges: BlackRock’s scale allows it to negotiate highly competitive rates with third-party service providers. These relationships are essential for delivering efficient, risk-controlled processes. BlackRock has evaluated how it negotiates agreements for new funds and re-tenders for existing funds. Savings are passed on to investors through lower charges, either directly where the fund bears that cost, or indirectly via a lower management charge where the costs are borne by BlackRock.

Value Assessment | As of June 2020 | 16 Fee Caps & Waivers: Given that the fixed costs of managing funds may disproportionately affect small or newly launched funds, we looked at how During the BlackRock seeks to deliver relatively consistent at-scale fees, regardless of assessment fund size. In 2015 BlackRock set up a dedicated internal process for reviewing additional costs and charges – particularly for smaller, newer period, we funds – to determine whether parts of the service charges should be passed on adjusted. For smaller funds or those with high custodial costs, BlackRock assesses whether to waive the annual service charge or to apply fee caps. savings of The BFM Board has reviewed how annual service charge waivers and fee caps are established and monitored by internal governance committees. £1 million to investors Our Conclusions We concluded that investors in all our UK authorised funds, regardless of through fee size, benefit from economies of scale. These include benefits realised via caps across access to: 38 funds. Aladdin portfolio management and risk technology that helps BlackRock fund managers identify potential issues such as concentrations across sectors, issuers and countries

A global trading platform through which BlackRock manages over $84 trillion in annual trading volume

Over 2,500 investment professionals, across 25 office locations, with deep knowledge and expertise in asset classes, sectors and geographic markets

Investment insights and research regularly shared and debated through the BlackRock Investment Institute, a global proprietary think tank launched in 2011

Competitive pricing from third-party providers

Application of fee caps. During the assessment period, we passed on savings of £1 million to investors through fee caps across 38 funds.

BlackRock’s Continued Commitment BlackRock is committed to growing economies of scale by strengthening its technology and investment platforms and engaging with service providers to monitor costs and negotiate terms. The BFM Board will continue partnering with BlackRock to monitor the value investors derive from economies of scale.

Value Assessment | As of June 2020 | 17 Quality of Service BlackRock provides high-quality service through its investment and risk management processes, fund operations and overall investor experience.

Our Evaluation Method Working in conjunction with BlackRock, the BFM Board evaluated the quality Investors in our of service BlackRock provides to fund investors by reviewing essential UK authorised services alongside additional ones. Our analysis focused on: funds benefit Investment Management: We assessed essential services – such as investment process integrity, investment team quality and diversity, from both research process and liquidity management – all of which we see as high-quality minimum requirements for delivering value to investors. We also considered the value of additional services such as: essential and

-  Quality of investment ideas generated through proprietary research and additional sharing of insights by over 2,500 investment professionals through the services. BlackRock Investment Institute.

- Impact of BlackRock’s Investment Stewardship team, which engages with companies to advocate sound governance and business practices that drive sustainable, long-term financial returns.

-  Innovations delivered by BlackRock’s Sustainable Investing team, which identifies what drives long-term return associated with environmental, social and governance issues and integrates them throughout Blackrock’s investment processes.

Risk Management: We reviewed essential services, including standard risk management policies, procedures and governance processes. We also considered the value to investors of additional services, such as:

-  BlackRock’s dedicated RQA group, which partners with portfolio management teams to monitor and analyse risk, and provide customised daily reporting of risk levels and scenario analysis.

-  Aladdin portfolio management and risk technology that helps BlackRock portfolio managers to identify potential issues such as concentrations across sectors, issuers and countries.

Fund Operations: We evaluated what is required for highly scalable fund operations – such as administrative services, vendor management, compliance with regulatory requirements and resilient IT systems – to ensure stability and effective operation.

Client Experience: We measured client satisfaction using both internal metrics and external metrics, such as surveys.

Value Assessment | As of June 2020 | 18 Our Conclusions We concluded that investors in our UK authorised funds benefit from both high-quality essential and additional services. BlackRock ranks among the top 10 UK fund managers in Broadridge’s 2019 Fund Buyer Focus UK Report and City Wire’s 2020 UK Wealth Service Report. These measure product quality, relationship management, and communications and marketing services. Furthermore, for the past 12 years, BlackRock has been awarded Inclusive Media’s Gold Standard award, which evaluates customer-focused practices and processes. We believe the services provided by BlackRock stand out in the industry.

BlackRock’s Continued Commitment BlackRock’s investment platform spans active, index and outcome-oriented strategies, enabling BFM to offer funds that meet a wide range of investor needs. The BFM Board will continue to partner with BlackRock to assess and improve the value delivered to investors through both essential and additional services.

Value Assessment | As of June 2020 | 19 Classes of Units BlackRock offers a range of unit classes based on services needed by different types of investors.

Our Evaluation Method BlackRock offers a range of unit and share classes in its mutual funds. They Through have varying eligibility criteria, rights and charges based on investor type, unit class holdings and how the fund is accessed. Working in conjunction with BlackRock, the BFM Board assessed all direct investors to ensure they were conversions, invested in the most appropriate and lowest charging eligible unit class. We BlackRock examined investor type, amount invested and how the fund was accessed. Where applicable, we considered whether the investor’s intermediary, such delivered as a financial adviser, received commission. savings of Our Conclusions £3 million While BlackRock’s core business is intermediated with its funds distributed by others, it has a segment of legacy direct investors. Before our value to investors assessment process, BlackRock started to move direct investors, when it was across 48 deemed in their best interest, to lower charging unit classes of the same fund with similar rights. About 400 investors in A unit classes, who met the funds. minimum holding thresholds, were transferred.

During the value assessment process, working in conjunction with BlackRock, we decided that regardless of how much investors held, we would make the lower charging retail unit class available where we believed it to be in their best interests. This was not explicitly required under our interpretation of the FCA requirements. Consequently, about 14,000 A unit class investors who did not meet minimum thresholds were offered the chance to move to lower charging unit classes.

Through these unit class conversions, which were experienced by investors across 48 funds, BlackRock delivered savings of £3 million to investors. Further details can be found in Section 4: Fund Pages.

BlackRock’s Continued Commitment The BFM Board will continue to ensure that investors are invested in the most appropriate charging unit class consistent with their best interests.

Value Assessment | As of June 2020 | 20 Section 3

Value Assessment Results

Value Assessment | As of June 2020 | 21 Additional analysis not required Required further analysis Required action Fund Dashboard Not enough information available to assess

BlackRock Funds > Click fund to go to assessment

Performance Comparable Market Rates Comparable Services AFM Costs Economies of Scale Quality of Service Classes Units of Overall Assessment

ACS 30:70 Global Equity Tracker Fund Delivers value ACS 50:50 Global Equity Tracker Fund Delivers value ACS 60:40 Global Equity Tracker Fund Delivers value ACS Continental European Equity Tracker Fund Delivers value ACS Japan Equity Tracker Fund Delivers value ACS LifePath 2019-2021 Delivers value ACS LifePath 2022-2024 Delivers value ACS LifePath 2025-2027 Delivers value ACS LifePath 2028-2030 Delivers value ACS LifePath 2031-2033 Delivers value ACS LifePath 2034-2036 Delivers value ACS LifePath 2037-2039 Delivers value ACS LifePath 2040-2042 Delivers value ACS LifePath 2043-2045 Delivers value ACS LifePath 2046-2048 Delivers value ACS LifePath 2049-2051 Delivers value ACS LifePath 2052-2054 Delivers value ACS UK Equity Tracker Fund Delivers value ACS US Equity Tracker Fund Delivers value ACS World ESG Equity Tracker Fund Delivers value ACS World ex UK Equity Tracker Fund Delivers value ACS World Low Carbon Equity Tracker Fund Delivers value ACS World Multifactor Equity Tracker Fund Delivers value ACS World Multifactor ESG Equity Tracker Fund Delivers value BlackRock Absolute Return Bond Fund Delivers value BlackRock Aquila Emerging Markets Fund Delivers value BlackRock Armed Forces Charities Growth & Income Fund Delivers value BlackRock Asia Fund Delivers value BlackRock Asia Special Situations Fund Delivers value Delivers value BlackRock Balanced Growth Portfolio Fund plus action BlackRock Balanced Managed Fund Delivers value Delivers value BlackRock Cash Fund plus action BlackRock Catholic Charities Growth & Income Fund Delivers value BlackRock Charities Growth & Income Fund Delivers value BlackRock Charities UK Bond Fund Delivers value BlackRock Charities UK Equity ESG Fund Delivers value BlackRock Charities UK Equity Fund Delivers value BlackRock Charities UK Equity Index Fund Delivers value BlackRock Consensus 35 Fund Delivers value BlackRock Consensus 60 Fund Delivers value BlackRock Consensus 70 Fund Delivers value BlackRock Consensus 85 Fund Delivers value BlackRock Consensus 100 Fund Delivers value BlackRock Continental European Fund Delivers value

Value Assessment | As of June 2020 | 22 Additional analysis not required Required further analysis Required action Fund Dashboard Not enough information available to assess

BlackRock Funds > Click fund to go to assessment

Performance Comparable Market Rates Comparable Services AFM Costs Economies of Scale Quality of Service Classes Units of Overall Assessment

BlackRock Continental European Income Fund Delivers value BlackRock Corporate Bond 1-10 Year Fund Delivers value BlackRock Corporate Bond Fund Delivers value BlackRock Dynamic Allocation Fund Delivers value BlackRock Dynamic Diversified Growth Fund Delivers value BlackRock Emerging Markets Absolute Alpha Fund Does not deliver value BlackRock Emerging Markets Fund Delivers value BlackRock European Absolute Alpha Fund Delivers value BlackRock European Dynamic Fund Delivers value BlackRock Global Equity Fund Delivers value Delivers value BlackRock Global Equity Fund plus action Delivers value BlackRock Global Income Fund plus action BlackRock Global Unconstrained Equity Fund (UK) Too new to rate BlackRock Gold & General Fund - Natural Resources Delivers value BlackRock Growth and Recovery Fund Delivers value BlackRock Institutional Bond Funds - All Stocks Corporate Bond Delivers value BlackRock Institutional Bond Funds - All Stocks Gilt Delivers value BlackRock Institutional Bond Funds - Index Linked Delivers value BlackRock Institutional Bond Funds - Over 10 Year Corporate Bonds Delivers value BlackRock Institutional Bond Funds - Over 15 Year Gilt Delivers value BlackRock Institutional Equity Funds - Emerging Markets Delivers value BlackRock Institutional Equity Funds - UK Select Equity Delivers value BlackRock Institutional Equity Funds - UK Smaller Companies Delivers value BlackRock Institutional UK Focus Fund Delivers value Blackrock Managed Volatility Fund Delivers value BlackRock Managed Volatility Fund I Delivers value BlackRock Managed Volatility Fund II Delivers value BlackRock Managed Volatility Fund III Delivers value BlackRock Managed Volatility Fund IV Delivers value Delivers value BlackRock Market Advantage Fund plus action BlackRock Natural Resources Growth & Income Fund Delivers value BlackRock Overseas Equity Fund Delivers value BlackRock Pension Growth Fund Delivers value BlackRock Sterling Short Duration Credit Fund Too new to rate BlackRock Sterling Strategic Bond Fund Delivers value BlackRock Strategic Growth Fund Delivers value BlackRock Systematic Continental European Fund Delivers value BlackRock Systematic Global Long / Short Equity Fund Delivers value BlackRock Systematic Multi Allocation Credit Fund Too new to rate BlackRock UK Absolute Alpha Fund Delivers value BlackRock UK Equity Fund Delivers value BlackRock UK Fund Delivers value

Value Assessment | As of June 2020 | 23 Additional analysis not required Required further analysis Required action Fund Dashboard Not enough information available to assess

BlackRock Funds > Click fund to go to assessment

Performance Comparable Market Rates Comparable Services AFM Costs Economies of Scale Quality of Service Classes Units of Overall Assessment

BlackRock UK Income Fund Delivers value BlackRock UK Managed Volatility Fund I Delivers value BlackRock UK Managed Volatility Fund II Delivers value BlackRock UK Managed Volatility Fund III Delivers value BlackRock UK Smaller Companies Fund Delivers value BlackRock UK Special Situations Fund Delivers value Delivers value BlackRock US Dynamic Fund plus action Delivers value BlackRock US Opportunities Fund plus action Blackrock Volatility Strategy Fund I Delivers value Blackrock Volatility Strategy Fund II Delivers value Blackrock Volatility Strategy Fund III Delivers value Blackrock Volatility Strategy Fund IV Delivers value iShares 100 UK Equity Index Fund (UK) Delivers value iShares 350 UK Equity Index Fund (UK) Delivers value iShares Continental European Equity Index Fund (UK) Delivers value iShares Corporate Bond Index Fund (UK) Delivers value iShares Emerging Markets Equity Index Fund (UK) Delivers value iShares Global Property Securities Equity Index Fund (UK) Delivers value iShares Index Linked Gilt Index Fund (UK) Delivers value iShares Japan Equity Index Fund (UK) Delivers value iShares Mid Cap UK Equity Index Fund (UK) Delivers value iShares North American Equity Index Fund (UK) Delivers value iShares Over 15 Years Corporate Bond Index Fund (UK) Delivers value iShares Over 15 Years Gilts Index Fund (UK) Delivers value iShares Overseas Corporate Bond Index Fund (UK) Delivers value iShares Overseas Government Bond Index Fund (UK) Delivers value iShares Pacific ex Japan Equity Index Fund (UK) Delivers value iShares UK Equity Index Fund (UK) Delivers value iShares UK Gilts All Stocks Index Fund (UK) Delivers value iShares US Equity Index Fund (UK) Delivers value MyMap 3 Delivers value MyMap 4 Delivers value MyMap 5 Delivers value MyMap 5 Select ESG Fund Too new to rate MyMap 6 Delivers value

Value Assessment | As of June 2020 | 24 Section 4

Fund Pages

Value Assessment | As of June 2020 | 25 ACS 30:70 Global Equity Tracker Fund BlackRock Authorised Contractual Scheme I

The fund aims to provide a return on and benefits generated from our investment by tracking closely the economies of scale, and concluded performance of its benchmark. that the fund is appropriately priced. Benchmark The fund does not charge a 30:70 Global Equity Sterling- management fee within the fund; its

Hedged Composite Index fees are typically negotiated directly Overall Rating with institutional investors and Delivers value Morningstar / IA Categories billed outside of the fund. However, EAA Fund Other Equity / -- the fund’s OCF, which excludes Overall Assessment management fees, is in line with Assessment Criteria Based on our review, we determined similar BlackRock accounts and an ● Performance that the fund delivers value. external peer group. ● Comparable Market Rates ● Comparable Services Performance Classes of Units ● AFM Costs Our assessment concluded that the The fund has a single unit class. ● Economies of Scale fund is delivering on its objective of There is no cheaper class to convert ● Quality of Service tracking its benchmark within a investors to that serves broadly the ● Classes of Units reasonable margin over the one- same purpose. year period. Comparable Market Rates Costs, Charges & Service Quality 0.01% 0.04% Fund OCF1 Peer Group OCF2 We reviewed the AFM costs associated with the fund, together with the quality of services provided > Click for more fund information.

ACS 50:50 Global Equity Tracker Fund BlackRock Authorised Contractual Scheme I

The fund aims to provide a return on circumstance, not reflective of Classes of Units investment by tracking closely the normal market conditions. Dividend The fund has a single unit class. performance of its benchmark. cancellations reduce the There is no cheaper class to convert opportunity for index funds to add investors to that serves broadly the Benchmark value because they reduce the same purpose. FTSE Custom Composite: UK All- income the funds receive. This Share (50%); Dev Europe ex UK makes them less tax efficient than (16.7%); US (16.7%); Japan (8.3%); expected relative to their Dev Asia Pacific ex Japan (8.3%) benchmarks. Midday (12:00 UK) Net Tax (UK Overall Rating Pension) Index Costs, Charges & Service Quality Delivers value We reviewed the AFM costs Morningstar / IA Categories associated with the fund, together EAA Fund Global Large-Cap Blend with the quality of services provided Equity / -- and benefits generated from our Assessment Criteria Overall Assessment economies of scale, and concluded ● Performance ● Based on our review, we determined that the fund is appropriately priced. Comparable Market Rates that the fund delivers value. ● Comparable Services The fund does not charge a ● AFM Costs Performance management fee within the fund; its ● Economies of Scale Although the fund underperformed fees are typically negotiated directly ● Quality of Service its benchmark over the one-year with institutional investors and ● Classes of Units period outside the expected range, billed outside of the fund. However, Comparable Market Rates its underperformance was driven by the fund’s OCF, which excludes dividend cancellations in UK management fees, is in line with 0.01% 0.04% Fund OCF1 Peer Group OCF2 holdings after the onset of the similar BlackRock accounts and an COVID-19 crisis. We believe this is a external peer group. temporary and exceptional > Click for more fund information.

1 OCF for X1 Accumulation class of fund 2 Fund is not assigned to IA sector; median OCF for broad group sector recommended by Fitz Partners

Value Assessment | As of June 2020 | 26 ACS 60:40 Global Equity Tracker Fund BlackRock Authorised Contractual Scheme I

The fund aims to provide a return on and exceptional circumstance, not Classes of Units investment by tracking closely the reflective of normal market condi- The fund has a single unit class. performance of its benchmark. tions. Dividend cancellations reduce There is no cheaper class to convert the opportunity for index funds to investors to that serves broadly the Benchmark add value because they reduce the same purpose. FTSE Custom Composite: UK All- income the funds receive. This Share (60%); Dev Europe ex UK makes them less tax efficient than (13.3%); US (13.3%); Japan (6.7%); expected relative to their bench- Dev Asia Pacific ex Japan (6.7%) marks. Overall Rating Midday (12:00 UK) Net Tax (UK Delivers value Pension) Index Costs, Charges & Service Quality We reviewed the AFM costs associ- Morningstar / IA Categories ated with the fund, together with the EAA Fund Global Large-Cap Blend quality of services provided and Assessment Criteria Equity / -- benefits generated from our econo- ● Performance Overall Assessment mies of scale, and concluded that ● Comparable Market Rates ● Based on our review, we determined the fund is appropriately priced. Comparable Services that the fund delivers value. ● AFM Costs The fund does not charge a man- ● Economies of Scale Performance agement fee within the fund; its fees ● Quality of Service Although the fund underperformed are typically negotiated directly with ● Classes of Units its benchmark over the one-year institutional investors and billed period outside the expected range, outside of the fund. However, the Comparable Market Rates its underperformance was driven by fund’s OCF, which excludes man- 0.02% 0.04% 1 2 dividend cancellations in UK hold- agement fees, is in line with similar Fund OCF Peer Group OCF ings after the onset of the COVID-19 BlackRock accounts and an external crisis. We believe this is a temporary peer group. > Click for more fund information.

ACS Continental European Equity Tracker Fund BlackRock Authorised Contractual Scheme I

The fund aims to provide a return on that the fund is appropriately priced. are no other unit classes that serve investment by tracking closely the The fund does not have any broadly the same purpose and thus performance of its benchmark. comparable BlackRock funds, we have not made any changes to segregated mandates or unit investors’ holdings. Benchmark classes to evaluate fees against. FTSE Developed Europe ex UK Index The fund does not charge a Morningstar / IA Categories management fee within the fund; its EAA Fund Europe ex-UK Equity / -- Overall Rating fees are typically negotiated directly Delivers value Overall Assessment with institutional investors and Based on our review, we determined billed outside of the fund. However, that the fund delivers value. the fund’s OCF, which excludes Performance management fees, is in line with Assessment Criteria ● Our assessment concluded that the similar BlackRock accounts and an Performance ● Comparable Market Rates fund is delivering on its objective of external peer group. ● Comparable Services tracking its benchmark within a Classes of Units ● AFM Costs reasonable margin over the one- We have looked at charges across all ● Economies of Scale year period. unit classes in the fund. We have ● Quality of Service ● Costs, Charges & Service Quality taken all reasonable steps to identify Classes of Units We reviewed the AFM costs investors who are in a higher Comparable Market Rates associated with the fund, together charging class and have acted in with the quality of services provided their best interests by assessing 0.02% 0.04% Fund OCF1 Peer Group OCF2 and benefits generated from our whether there are similar classes for economies of scale, and concluded which they are eligible. Our assessment concluded that there > Click for more fund information.

1 OCF for X1 Accumulation class of fund 2 Fund is not assigned to IA sector; median OCF for broad group sector recommended by Fitz Partners

Value Assessment | As of June 2020 | 27 ACS Japan Equity Tracker Fund BlackRock Authorised Contractual Scheme I

The fund aims to provide a return on that the fund is appropriately priced. are no other unit classes that serve investment by tracking closely the The fund does not have any broadly the same purpose and thus performance of its benchmark. comparable BlackRock funds, we have not made any changes to segregated mandates or unit investors’ holdings. Benchmark classes to evaluate fees against. FTSE Japan Index The fund does not charge a Morningstar / IA Categories management fee within the fund; its EAA Fund Japan Large-Cap Equity fees are typically negotiated directly Overall Rating / -- Delivers value with institutional investors and Overall Assessment billed outside of the fund. However, Based on our review, we determined the fund’s OCF, which excludes that the fund delivers value. management fees, is in line with Assessment Criteria Performance similar BlackRock accounts and an ● Performance Our assessment concluded that the external peer group. ● Comparable Market Rates ● fund is delivering on its objective of Comparable Services Classes of Units ● AFM Costs tracking its benchmark within a We have looked at charges across all ● Economies of Scale reasonable margin over the one- unit classes in the fund. We have ● Quality of Service year period. taken all reasonable steps to identify ● Classes of Units Costs, Charges & Service Quality investors who are in a higher We reviewed the AFM costs charging class and have acted in Comparable Market Rates associated with the fund, together their best interests by assessing 0.01% 0.04% Fund OCF1 Peer Group OCF2 with the quality of services provided whether there are similar classes for and benefits generated from our which they are eligible. Our economies of scale, and concluded assessment concluded that there > Click for more fund information.

ACS LifePath 2019-2021 BlackRock Authorised Contractual Scheme (2)

The fund is a target date retirement changes as appropriate over the There is no cheaper class to convert fund which aims to provide a return one-year period. investors to that serves broadly the on investment with an asset same purpose. Costs, Charges & Service Quality allocation that changes over time. We reviewed the AFM costs Benchmark associated with the fund, together The fund does not have a target, with the quality of services provided Overall Rating constraining or comparator and benefits generated from our Delivers value benchmark. As the fund’s asset economies of scale, and concluded allocation changes from time to that the fund is appropriately priced. time, it is compared against internal The fund does not charge a composite benchmarks. Assessment Criteria management fee within the fund; its ● Performance Morningstar / IA Categories fees are typically negotiated directly ● Comparable Market Rates EAA Fund Target Date 2021 - 2025 with institutional investors and ● Comparable Services / -- billed outside of the fund. This ● AFM Costs means the fund’s OCF excludes any ● Economies of Scale Overall Assessment management fees. For this reason ● Quality of Service Based on our review, we determined there is no meaningful peer group ● Classes of Units that the fund delivers value. for the fund. However, its OCF is in Comparable Market Rates Performance line with similar BlackRock Our assessment concluded that the 0.02% Not Meaningful accounts. 1 fund is delivering on its objective of Fund OCF Peer Group OCF providing a return on investment Classes of Units The fund has a single unit class. with an asset allocation that > Click for more fund information.

1 OCF for X1 Accumulation class of fund 2 Fund is not assigned to IA sector; median OCF for broad group sector recommended by Fitz Partners

Value Assessment | As of June 2020 | 28 ACS LifePath 2022-2024 BlackRock Authorised Contractual Scheme (2)

The fund is a target date retirement changes as appropriate over the There is no cheaper class to convert fund which aims to provide a return one-year period. investors to that serves broadly the on investment with an asset same purpose. Costs, Charges & Service Quality allocation that changes over time. We reviewed the AFM costs Benchmark associated with the fund, together The fund does not have a target, with the quality of services provided Overall Rating constraining or comparator and benefits generated from our Delivers value benchmark. As the fund’s asset economies of scale, and concluded allocation changes from time to that the fund is appropriately priced. time, it is compared against internal The fund does not charge a composite benchmarks. Assessment Criteria management fee within the fund; its ● Performance Morningstar / IA Categories fees are typically negotiated directly ● Comparable Market Rates EAA Fund Target Date 2021 - 2025 with institutional investors and ● Comparable Services / -- billed outside of the fund. This ● AFM Costs means the fund’s OCF excludes any ● Economies of Scale Overall Assessment management fees. For this reason ● Quality of Service Based on our review, we determined there is no meaningful peer group ● Classes of Units that the fund delivers value. for the fund. However, its OCF is in Comparable Market Rates Performance line with similar BlackRock Our assessment concluded that the accounts. 0.02% Not Meaningful Fund OCF1 Peer Group OCF fund is delivering on its objective of providing a return on investment Classes of Units The fund has a single unit class. with an asset allocation that > Click for more fund information.

ACS LifePath 2025-2027 BlackRock Authorised Contractual Scheme (2)

The fund is a target date retirement Costs, Charges & Service Quality fund which aims to provide a return We reviewed the AFM costs on investment with an asset associated with the fund, together allocation that changes over time. with the quality of services provided and benefits generated from our Benchmark economies of scale, and concluded The fund does not have a target, that the fund is appropriately priced. constraining or comparator benchmark. As the fund’s asset The fund does not charge a Overall Rating allocation changes from time to management fee within the fund; its Delivers value time, it is compared against internal fees are typically negotiated directly composite benchmarks. with institutional investors and billed outside of the fund. This Morningstar / IA Categories means the fund’s OCF excludes any Assessment Criteria EAA Fund Target Date 2026 - 2030 ● management fees. For this reason Performance / -- ● there is no meaningful peer group Comparable Market Rates ● Comparable Services Overall Assessment for the fund. However, its OCF is in ● AFM Costs Based on our review, we determined line with similar BlackRock ● Economies of Scale that the fund delivers value. accounts. ● Quality of Service Performance Classes of Units ● Classes of Units Our assessment concluded that the The fund has a single unit class. Comparable Market Rates fund is delivering on its objective of There is no cheaper class to convert providing a return on investment investors to that serves broadly the 0.02% Not Meaningful Fund OCF1 Peer Group OCF with an asset allocation that same purpose. changes as appropriate over the one-year period. > Click for more fund information.

1 OCF for X1 Accumulation class of fund

Value Assessment | As of June 2020 | 29 ACS LifePath 2028-2030 BlackRock Authorised Contractual Scheme (2)

The fund is a target date retirement Costs, Charges & Service Quality fund which aims to provide a return We reviewed the AFM costs on investment with an asset associated with the fund, together allocation that changes over time. with the quality of services provided and benefits generated from our Benchmark economies of scale, and concluded The fund does not have a target, that the fund is appropriately priced. constraining or comparator benchmark. As the fund’s asset The fund does not charge a Overall Rating allocation changes from time to management fee within the fund; its Delivers value time, it is compared against internal fees are typically negotiated directly composite benchmarks. with institutional investors and billed outside of the fund. This Morningstar / IA Categories means the fund’s OCF excludes any Assessment Criteria EAA Fund Target Date 2026 - 2030 ● management fees. For this reason Performance / -- ● Comparable Market Rates there is no meaningful peer group ● Comparable Services Overall Assessment for the fund. However, its OCF is in ● AFM Costs Based on our review, we determined line with similar BlackRock ● Economies of Scale that the fund delivers value. accounts. ● Quality of Service Performance Classes of Units ● Classes of Units Our assessment concluded that the The fund has a single unit class. Comparable Market Rates fund is delivering on its objective of There is no cheaper class to convert providing a return on investment investors to that serves broadly the 0.02% Not Meaningful Fund OCF1 Peer Group OCF with an asset allocation that same purpose. changes as appropriate over the one-year period. > Click for more fund information.

ACS LifePath 2031-2033 BlackRock Authorised Contractual Scheme (2)

The fund is a target date retirement Costs, Charges & Service Quality fund which aims to provide a return We reviewed the AFM costs on investment with an asset associated with the fund, together allocation that changes over time. with the quality of services provided and benefits generated from our Benchmark economies of scale, and concluded The fund does not have a target, that the fund is appropriately priced. constraining or comparator Overall Rating benchmark. As the fund’s asset The fund does not charge a Delivers value allocation changes from time to management fee within the fund; its time, it is compared against internal fees are typically negotiated directly composite benchmarks. with institutional investors and billed outside of the fund. This Assessment Criteria Morningstar / IA Categories EAA ● Performance means the fund’s OCF excludes any Fund Target Date 2031 - 2035 / -- ● Comparable Market Rates management fees. For this reason ● Comparable Services Overall Assessment there is no meaningful peer group ● AFM Costs Based on our review, we determined for the fund. However, its OCF is in ● Economies of Scale that the fund delivers value. line with similar BlackRock ● Quality of Service Performance accounts. ● Classes of Units Our assessment concluded that the Classes of Units Comparable Market Rates fund is delivering on its objective of The fund has a single unit class. providing a return on investment 0.02% Not Meaningful There is no cheaper class to convert Fund OCF1 Peer Group OCF with an asset allocation that investors to that serves broadly the changes as appropriate over the same purpose. one-year period. > Click for more fund information.

1 OCF for X1 Accumulation class of fund

Value Assessment | As of June 2020 | 30 ACS LifePath 2034-2036 BlackRock Authorised Contractual Scheme (2)

The fund is a target date retirement Costs, Charges & Service Quality fund which aims to provide a return We reviewed the AFM costs on investment with an asset associated with the fund, together allocation that changes over time. with the quality of services provided and benefits generated from our Benchmark economies of scale, and concluded The fund does not have a target, that the fund is appropriately priced. constraining or comparator benchmark. As the fund’s asset The fund does not charge a Overall Rating allocation changes from time to management fee within the fund; its Delivers value time, it is compared against internal fees are typically negotiated directly composite benchmarks. with institutional investors and billed outside of the fund. This Morningstar / IA Categories means the fund’s OCF excludes any Assessment Criteria EAA Fund Target Date 2036 - 2040 ● management fees. For this reason Performance / -- ● Comparable Market Rates there is no meaningful peer group ● Comparable Services Overall Assessment for the fund. However, its OCF is in ● AFM Costs Based on our review, we determined line with similar BlackRock ● Economies of Scale that the fund delivers value. accounts. ● Quality of Service Performance Classes of Units ● Classes of Units Our assessment concluded that the The fund has a single unit class. Comparable Market Rates fund is delivering on its objective of There is no cheaper class to convert providing a return on investment investors to that serves broadly the 0.02% Not Meaningful Fund OCF1 Peer Group OCF with an asset allocation that same purpose. changes as appropriate over the one-year period. > Click for more fund information.

ACS LifePath 2037-2039 BlackRock Authorised Contractual Scheme (2)

The fund is a target date retirement Costs, Charges & Service Quality fund which aims to provide a return We reviewed the AFM costs on investment with an asset associated with the fund, together allocation that changes over time. with the quality of services provided and benefits generated from our Benchmark economies of scale, and concluded The fund does not have a target, that the fund is appropriately priced. constraining or comparator benchmark. As the fund’s asset The fund does not charge a Overall Rating allocation changes from time to management fee within the fund; its Delivers value time, it is compared against internal fees are typically negotiated directly composite benchmarks. with institutional investors and billed outside of the fund. This Morningstar / IA Categories means the fund’s OCF excludes any Assessment Criteria EAA Fund Target Date 2036 - 2040 ● management fees. For this reason Performance / -- ● Comparable Market Rates there is no meaningful peer group ● Comparable Services Overall Assessment for the fund. However, its OCF is in ● AFM Costs Based on our review, we determined line with similar BlackRock ● Economies of Scale that the fund delivers value. accounts. ● Quality of Service Performance Classes of Units ● Classes of Units Our assessment concluded that the The fund has a single unit class. Comparable Market Rates fund is delivering on its objective of There is no cheaper class to convert providing a return on investment investors to that serves broadly the 0.02% Not Meaningful Fund OCF1 Peer Group OCF with an asset allocation that same purpose. changes as appropriate over the one-year period. > Click for more fund information.

1 OCF for X1 Accumulation class of fund

Value Assessment | As of June 2020 | 31 ACS LifePath 2040-2042 BlackRock Authorised Contractual Scheme (2)

The fund is a target date retirement changes as appropriate over the There is no cheaper class to convert fund which aims to provide a return one-year period. investors to that serves broadly the on investment with an asset same purpose. Costs, Charges & Service Quality allocation that changes over time. We reviewed the AFM costs Benchmark associated with the fund, together The fund does not have a target, with the quality of services provided Overall Rating constraining or comparator and benefits generated from our Delivers value benchmark. As the fund’s asset economies of scale, and concluded allocation changes from time to that the fund is appropriately priced. time, it is compared against internal The fund does not charge a composite benchmarks. Assessment Criteria management fee within the fund; its ● Performance Morningstar / IA Categories fees are typically negotiated directly ● Comparable Market Rates EAA Fund Target Date 2041 - 2045 with institutional investors and ● Comparable Services / -- billed outside of the fund. This ● AFM Costs means the fund’s OCF excludes any ● Economies of Scale Overall Assessment management fees. For this reason ● Quality of Service Based on our review, we determined there is no meaningful peer group ● Classes of Units that the fund delivers value. for the fund. However, its OCF is in Performance line with similar BlackRock Comparable Market Rates Our assessment concluded that the accounts. 0.02% Not Meaningful 1 fund is delivering on its objective of Fund OCF Peer Group OCF providing a return on investment Classes of Units The fund has a single unit class. with an asset allocation that > Click for more fund information.

ACS LifePath 2043-2045 BlackRock Authorised Contractual Scheme (2)

The fund is a target date retirement Costs, Charges & Service Quality fund which aims to provide a return We reviewed the AFM costs on investment with an asset associated with the fund, together allocation that changes over time. with the quality of services provided and benefits generated from our Benchmark economies of scale, and concluded The fund does not have a target, that the fund is appropriately priced. constraining or comparator benchmark. As the fund’s asset The fund does not charge a Overall Rating allocation changes from time to management fee within the fund; its Delivers value time, it is compared against internal fees are typically negotiated directly composite benchmarks. with institutional investors and billed outside of the fund. This Morningstar / IA Categories means the fund’s OCF excludes any Assessment Criteria EAA Fund Target Date 2041 - 2045 management fees. For this reason ● Performance / -- ● there is no meaningful peer group Comparable Market Rates ● Comparable Services Overall Assessment for the fund. However, its OCF is in ● AFM Costs Based on our review, we determined line with similar BlackRock ● Economies of Scale that the fund delivers value. accounts. ● Quality of Service Performance Classes of Units ● Classes of Units Our assessment concluded that the The fund has a single unit class. Comparable Market Rates fund is delivering on its objective of There is no cheaper class to convert providing a return on investment investors to that serves broadly the 0.02% Not Meaningful Fund OCF1 Peer Group OCF with an asset allocation that same purpose. changes as appropriate over the one-year period. > Click for more fund information.

1 OCF for X1 Accumulation class of fund

Value Assessment | As of June 2020 | 32 ACS LifePath 2046-2048 BlackRock Authorised Contractual Scheme (2)

The fund is a target date retirement Costs, Charges & Service Quality fund which aims to provide a return We reviewed the AFM costs on investment with an asset associated with the fund, together allocation that changes over time. with the quality of services provided and benefits generated from our Benchmark economies of scale, and concluded The fund does not have a target, that the fund is appropriately priced. constraining or comparator Overall Rating benchmark. As the fund’s asset The fund does not charge a Delivers value allocation changes from time to management fee within the fund; its time, it is compared against internal fees are typically negotiated directly composite benchmarks. with institutional investors and billed outside of the fund. This Assessment Criteria Morningstar / IA Categories ● means the fund’s OCF excludes any Performance EAA Fund Target Date 2046+ / -- ● Comparable Market Rates management fees. For this reason ● Comparable Services Overall Assessment there is no meaningful peer group ● AFM Costs Based on our review, we determined for the fund. However, its OCF is in ● Economies of Scale that the fund delivers value. line with similar BlackRock ● Quality of Service Performance accounts. ● Classes of Units Our assessment concluded that the Classes of Units Comparable Market Rates fund is delivering on its objective of The fund has a single unit class. providing a return on investment There is no cheaper class to convert 0.02% Not Meaningful Fund OCF1 Peer Group OCF with an asset allocation that investors to that serves broadly the changes as appropriate over the same purpose. one-year period. > Click for more fund information.

ACS LifePath 2049-2051 BlackRock Authorised Contractual Scheme (2)

The fund is a target date retirement Costs, Charges & Service Quality fund which aims to provide a return We reviewed the AFM costs on investment with an asset associated with the fund, together allocation that changes over time. with the quality of services provided and benefits generated from our Benchmark economies of scale, and concluded The fund does not have a target, that the fund is appropriately priced. constraining or comparator Overall Rating benchmark. As the fund’s asset The fund does not charge a Delivers value allocation changes from time to management fee within the fund; its time, it is compared against internal fees are typically negotiated directly composite benchmarks. with institutional investors and billed outside of the fund. This Assessment Criteria Morningstar / IA Categories means the fund’s OCF excludes any ● Performance EAA Fund Target Date 2046+ / -- management fees. For this reason ● Comparable Market Rates Overall Assessment there is no meaningful peer group ● Comparable Services ● Based on our review, we determined for the fund. However, its OCF is in AFM Costs ● Economies of Scale that the fund delivers value. line with similar BlackRock ● Quality of Service accounts. Performance ● Classes of Units Our assessment concluded that the Classes of Units fund is delivering on its objective of The fund has a single unit class. Comparable Market Rates providing a return on investment There is no cheaper class to convert 0.02% Not Meaningful 1 with an asset allocation that investors to that serves broadly the Fund OCF Peer Group OCF changes as appropriate over the same purpose. one-year period. > Click for more fund information.

1 OCF for X1 Accumulation class of fund

Value Assessment | As of June 2020 | 33 ACS LifePath 2052-2054 BlackRock Authorised Contractual Scheme (2)

The fund is a target date retirement Costs, Charges & Service Quality fund which aims to provide a return We reviewed the AFM costs on investment with an asset associated with the fund, together allocation that changes over time. with the quality of services provided and benefits generated from our Benchmark economies of scale, and concluded The fund does not have a target, that the fund is appropriately priced. constraining or comparator Overall Rating benchmark. As the fund’s asset The fund does not charge a Delivers value allocation changes from time to management fee within the fund; its time, it is compared against internal fees are typically negotiated directly composite benchmarks. with institutional investors and billed outside of the fund. This Assessment Criteria Morningstar / IA Categories ● means the fund’s OCF excludes any Performance EAA Fund Target Date 2046+ / -- ● Comparable Market Rates management fees. For this reason ● Comparable Services Overall Assessment there is no meaningful peer group ● AFM Costs Based on our review, we determined for the fund. However, its OCF is in ● Economies of Scale that the fund delivers value. line with similar BlackRock ● Quality of Service Performance accounts. ● Classes of Units Our assessment concluded that the Classes of Units Comparable Market Rates fund is delivering on its objective of The fund has a single unit class. providing a return on investment There is no cheaper class to convert 0.02% Not Meaningful Fund OCF1 Peer Group OCF with an asset allocation that investors to that serves broadly the changes as appropriate over the same purpose. one-year period. > Click for more fund information.

ACS UK Equity Tracker Fund BlackRock Authorised Contractual Scheme I

The fund aims to provide a return on economies of scale, and concluded broadly the same purpose and thus investment by tracking closely the that the fund is appropriately priced. we have not made any changes to performance of its benchmark. investors’ holdings. The fund does not charge a Benchmark management fee within the fund; its FTSE All Share Index fees are typically negotiated directly with institutional investors and Overall Rating Morningstar / IA Categories billed outside of the fund. However, Delivers value EAA Fund UK Large-Cap Equity / -- the fund’s OCF, which excludes Overall Assessment management fees, is in line with Based on our review, we determined similar BlackRock accounts and an Assessment Criteria that the fund delivers value. external peer group. ● Performance ● Performance Classes of Units Comparable Market Rates ● Comparable Services Our assessment concluded that the We have looked at charges across all ● AFM Costs fund is delivering on its objective of unit classes in the fund. We have ● Economies of Scale tracking its benchmark within a taken all reasonable steps to identify ● Quality of Service reasonable margin over the one- investors who are in a higher ● Classes of Units year period. charging class and have acted in Costs, Charges & Service Quality their best interests by assessing Comparable Market Rates We reviewed the AFM costs whether there are similar classes for 0.01% 0.02% 1 2 associated with the fund, together which they are eligible. Our Fund OCF Peer Group OCF with the quality of services provided assessment concluded that there are no other unit classes that serve and benefits generated from our > Click for more fund information.

1 OCF for X1 Accumulation class of fund 2 Fund is not assigned to IA sector; median OCF for broad group sector recommended by Fitz Partners

Value Assessment | As of June 2020 | 34 ACS US Equity Tracker Fund BlackRock Authorised Contractual Scheme I

The fund aims to provide a return on economies of scale, and concluded investment by tracking closely the that the fund is appropriately priced. performance of its benchmark. Additionally, we confirmed that the fund is priced at a reasonable level Benchmark when compared to both an external FTSE USA Index peer group determined by the IA and Morningstar / IA Categories to similar BlackRock funds. Overall Rating EAA Fund US Large-Cap Blend Delivers value Equity / North America Classes of Units We have looked at charges across all Overall Assessment unit classes in the fund. We have Based on our review, we determined taken all reasonable steps to identify Assessment Criteria that the fund delivers value. investors who are in a higher ● Performance Performance charging class and have acted in ● Comparable Market Rates ● Our assessment concluded that the their best interests by assessing Comparable Services ● AFM Costs fund is delivering on its objective of whether there are similar classes for which they are eligible. Our ● Economies of Scale tracking its benchmark within a ● assessment concluded that there Quality of Service reasonable margin over the one- ● Classes of Units year period. are no other unit classes that serve broadly the same purpose and thus Comparable Market Rates Costs, Charges & Service Quality we have not made any changes to We reviewed the AFM costs 0.01% 0.02% investors’ holdings. 1 2 associated with the fund, together Fund OCF Peer Group OCF with the quality of services provided and benefits generated from our > Click for more fund information.

ACS World ESG Equity Tracker Fund BlackRock Authorised Contractual Scheme I

The fund aims to provide a return on with the quality of services provided broadly the same purpose and thus investment by tracking closely the and benefits generated from our we have not made any changes to performance of its benchmark. economies of scale, and concluded investors’ holdings. that the fund is appropriately priced. Benchmark MSCI World ESG Focus Low Carbon The fund does not charge a Screened Index management fee within the fund; its fees are typically negotiated directly Morningstar / IA Categories Overall Rating with institutional investors and EAA Fund Global Large-Cap Blend Delivers value billed outside of the fund. However, Equity / -- the fund’s OCF, which excludes Overall Assessment management fees, is in line with Based on our review, we determined similar BlackRock accounts and an Assessment Criteria that the fund delivers value. external peer group. ● Performance ● Comparable Market Rates Performance Classes of Units ● Comparable Services Our assessment concluded that the We have looked at charges across all ● AFM Costs fund is delivering on its objective of unit classes in the fund. We have ● Economies of Scale tracking its benchmark within a taken all reasonable steps to identify ● Quality of Service reasonable margin since inception investors who are in a higher ● Classes of Units (fund inception of 28th of June charging class and have acted in 2019). their best interests by assessing Comparable Market Rates 0.03% 0.04% Costs, Charges & Service Quality whether there are similar classes for Fund OCF3 Peer Group OCF4 We reviewed the AFM costs which they are eligible. Our associated with the fund, together assessment concluded that there are no other unit classes that serve > Click for more fund information.

1 OCF for X1P Accumulation class of fund 2 IA sector median OCF 3 OCF for X1 Accumulation class of fund 4 Fund is not assigned to IA sector; median OCF for broad group sector recommended by Fitz Partners

Value Assessment | As of June 2020 | 35 ACS World ex UK Equity Tracker Fund BlackRock Authorised Contractual Scheme I

The fund aims to provide a return on economies of scale, and concluded assessment concluded that there investment by tracking closely the that the fund is appropriately priced. are no other unit classes that serve performance of its benchmark. The fund does not have any broadly the same purpose and thus comparable BlackRock funds, we have not made any changes to Benchmark segregated mandates or unit investors’ holdings. FTSE Developed World ex UK Index classes. Morningstar / IA Categories The fund does not charge a EAA Fund Global Large-Cap Blend Overall Rating management fee within the fund; its Equity / -- Delivers value fees are typically negotiated directly Overall Assessment with institutional investors and Based on our review, we determined billed outside of the fund. However, that the fund delivers value. the fund’s OCF, which excludes Assessment Criteria ● Performance Performance management fees, is in line with similar BlackRock accounts and an ● Comparable Market Rates Our assessment concluded that the ● external peer group. Comparable Services fund is delivering on its objective of ● AFM Costs tracking its benchmark within a Classes of Units ● Economies of Scale reasonable margin over the one- We have looked at charges across all ● Quality of Service year period. unit classes in the fund. We have ● Classes of Units Costs, Charges & Service Quality taken all reasonable steps to identify Comparable Market Rates We reviewed the AFM costs investors who are in a higher charging class and have acted in 0.01% 0.04% associated with the fund, together Fund OCF1 Peer Group OCF2 with the quality of services provided their best interests by assessing and benefits generated from our whether there are similar classes for which they are eligible. Our > Click for more fund information.

ACS World Low Carbon Equity Tracker Fund BlackRock Authorised Contractual Scheme I

The fund aims to provide a return on and benefits generated from our investment by tracking closely the economies of scale, and concluded performance of its benchmark. that the fund is appropriately priced. The fund does not have any Benchmark comparable BlackRock funds, MSCI World Low Carbon Target segregated mandates or unit Index classes to evaluate fees against. Overall Rating Morningstar / IA Categories The fund does not charge a Delivers value EAA Fund Global Large-Cap Blend management fee within the fund; its Equity / -- fees are typically negotiated directly Overall Assessment with institutional investors and Assessment Criteria Based on our review, we determined billed outside of the fund. However, ● Performance that the fund delivers value. the fund’s OCF, which excludes ● Comparable Market Rates ● Performance management fees, is in line with Comparable Services ● AFM Costs Our assessment concluded that the similar BlackRock accounts and an ● Economies of Scale fund is delivering on its objective of external peer group. ● Quality of Service tracking its benchmark within a Classes of Units ● Classes of Units reasonable margin over the one- The fund has a single unit class. year period. There is no cheaper class to convert Comparable Market Rates Costs, Charges & Service Quality investors to that serves broadly the 0.03% 0.04% 3 2 We reviewed the AFM costs same purpose. Fund OCF Peer Group OCF associated with the fund, together with the quality of services provided > Click for more fund information.

1 OCF for X1 Accumulation class of fund 2 Fund is not assigned to IA sector; median OCF for broad group sector recommended by Fitz Partners 3 OCF for X2 Accumulation class of fund

Value Assessment | As of June 2020 | 36 ACS World Multifactor Equity Tracker Fund BlackRock Authorised Contractual Scheme I

The fund aims to provide a return on that the fund is appropriately priced. investment by tracking closely the The fund does not charge a performance of its benchmark. management fee within the fund; its Benchmark fees are typically negotiated directly MSCI World Diversified Multiple- with institutional investors and billed Factor Index outside of the fund. However, the fund’s OCF, which excludes Morningstar / IA Categories management fees, is in line with Overall Rating EAA Fund Global Flex-Cap Equity / similar BlackRock accounts and an Delivers value -- external peer group. Overall Assessment Classes of Units Based on our review, we determined We have looked at charges across all Assessment Criteria that the fund delivers value. unit classes in the fund. We have ● Performance taken all reasonable steps to identify Performance ● Comparable Market Rates Our assessment concluded that the investors who are in a higher ● Comparable Services fund is delivering on its objective of charging class and have acted in ● AFM Costs tracking its benchmark within a their best interests by assessing ● Economies of Scale reasonable margin over the one-year whether there are similar classes for ● Quality of Service period. which they are eligible. Our ● Classes of Units assessment concluded that there are Costs, Charges & Service Quality no other unit classes that serve Comparable Market Rates We reviewed the AFM costs broadly the same purpose and thus 0.05% 0.04% associated with the fund, together we have not made any changes to Fund OCF1 Peer Group OCF2 with the quality of services provided investors’ holdings. and benefits generated from our economies of scale, and concluded > Click for more fund information.

ACS World Multifactor ESG Equity Tracker Fund BlackRock Authorised Contractual Scheme I

The fund aims to provide a return on economies of scale, and concluded investment by tracking closely the that the fund is appropriately priced. performance of its benchmark. The fund does not charge a Benchmark management fee within the fund; its MSCI World Select Multiple Factor fees are typically negotiated directly ESG Low Carbon Target Index with institutional investors and billed outside of the fund. However, the Overall Rating Morningstar / IA Categories fund’s OCF, which excludes Delivers value EAA Fund Global Flex-Cap Equity / management fees, is in line with -- similar BlackRock accounts and an external peer group. Overall Assessment Based on our review, we determined Assessment Criteria Classes of Units ● Performance that the fund delivers value. We have looked at charges across all ● Comparable Market Rates unit classes in the fund. We have Performance ● Comparable Services taken all reasonable steps to identify Our assessment concluded that the ● AFM Costs investors who are in a higher fund is delivering on its objective of ● Economies of Scale charging class and have acted in tracking its benchmark within a ● Quality of Service their best interests by assessing reasonable margin since inception ● Classes of Units (fund inception of 12th July 2019). whether there are similar classes for which they are eligible. Our Comparable Market Rates Costs, Charges & Service Quality assessment concluded that there are We reviewed the AFM costs no other unit classes that serve 0.05% 0.04% Fund OCF3 Peer Group OCF2 associated with the fund, together broadly the same purpose and thus with the quality of services provided we have not made any changes to and benefits generated from our investors’ holdings. > Click for more fund information.

1 OCF for X2 Accumulation class of fund 2 Fund is not assigned to IA sector; median OCF for broad group sector recommended by Fitz Partners 3 OCF for X1 Accumulation class of fund

Value Assessment | As of June 2020 | 37 BlackRock Absolute Return Bond Fund Absolute Funds

The fund aims to provide a positive Costs, Charges & Service Quality broadly the same purpose and thus absolute return on investment (i.e. an We reviewed the AFM costs we have not made any changes to increase in the overall value of the associated with the fund, together investors’ holdings. fund) (gross of fees) over any with the quality of services provided 12-month period regardless of and benefits generated from our market conditions. economies of scale, and concluded Overall Rating that the fund is appropriately priced. Benchmark Delivers value Additionally, we confirmed that the LIBOR 3 Month (GBP) fund is priced at a reasonable level Morningstar / IA Categories when compared to both an external EAA Fund Alt - Long/Short Credit / peer group determined by the IA and Assessment Criteria Targeted Absolute Return to similar BlackRock funds. ● Performance ● Comparable Market Rates Overall Assessment Classes of Units ● Comparable Services Based on our review, we determined We have looked at charges across all ● AFM Costs that the fund delivers value. unit classes in the fund. We have ● Economies of Scale Performance taken all reasonable steps to identify ● Quality of Service ● Our assessment concluded that the investors who are in a higher Classes of Units fund is delivering on its objective of charging class and have acted in Comparable Market Rates achieving a positive absolute return their best interests by assessing over the assessed three- and five- whether there are similar classes for 0.59% 0.70% Fund OCF1 Peer Group OCF2 year periods. which they are eligible. Our assessment concluded that there are no other unit classes that serve > Click for more fund information.

BlackRock Aquila Emerging Markets Fund Institutional Authorised Unit Trusts

The fund aims to provide a return on economies of scale, and concluded assessment concluded that there investment by tracking closely (gross that the fund is appropriately priced. are no other unit classes that serve of fees) the performance of its Additionally, we confirmed that the broadly the same purpose and thus benchmark. fund is priced at a reasonable level we have not made any changes to when compared to both an external investors’ holdings. Benchmark peer group and to similar BlackRock S&P IFC Investable Composite funds. ex-Malaysia Index The fund does not charge a Morningstar / IA Categories Overall Rating management fee within the fund; its EAA Fund Global Emerging Markets Delivers value fees are typically negotiated directly Equity / -- with institutional investors and Overall Assessment billed outside of the fund. However, Based on our review, we determined the fund’s OCF, which excludes Assessment Criteria that the fund delivers value. management fees, is in line with ● Performance ● similar BlackRock accounts and an Comparable Market Rates Performance ● Comparable Services external peer group. Our assessment concluded that the ● AFM Costs fund is delivering on its objective of Classes of Units ● Economies of Scale tracking its benchmark within a We have looked at charges across all ● Quality of Service reasonable margin over the one- unit classes in the fund. We have ● Classes of Units year period. taken all reasonable steps to identify Comparable Market Rates Costs, Charges & Service Quality investors who are in a higher charging class and have acted in 0.15% 0.12% We reviewed the AFM costs Fund OCF3 Peer Group OCF4 associated with the fund, together their best interests by assessing with the quality of services provided whether there are similar classes for and benefits generated from our which they are eligible. Our > Click for more fund information.

1 OCF for D Accumulation class of fund 2 IA sector median OCF 3 OCF for X Accumulation class of fund 4 Fund is not assigned to IA sector; median OCF for broad group sector recommended by Fitz Partners

Value Assessment | As of June 2020 | 38 BlackRock Armed Forces Charities Growth & Income Fund BlackRock Charities Funds

The fund aims to provide a return on The fund was previously structured charging class and have acted in investment over five or more as a Common Investment Fund their best interests by assessing consecutive years; generated (CIF). On 6th December 2019, the whether there are similar classes for through an increase to the value of CIF closed and the assets were which they are eligible. Our the assets held by the fund and/or transferred to a Charity Authorised assessment concluded that there income received from those assets. Investment Fund (CAIF). The CAIF is are no other unit classes that serve being run with the same investment broadly the same purpose and thus Benchmark objective and policy. Please note we have not made any changes to Composite of: FTSE All-Share Index that the historical performance investors’ holdings. (30%); MSCI World ex UK Index shown before 6th December 2019 is (30%); BBG Barc Sterling indicative and is provided when the Aggregate: Gilts (20%); GBP 3M fund was run as a CIF. British Pound Sterling LIBOR Overall Rating (10%); IPD All Balanced Funds Costs, Charges & Service Quality Delivers value Index (10%) We reviewed the AFM costs associated with the fund, together Morningstar / IA Categories with the quality of services provided EAA Fund GBP Moderately and benefits generated from our Assessment Criteria Adventurous Allocation / -- economies of scale, and concluded ● Performance Overall Assessment that the fund is appropriately priced. ● Comparable Market Rates Based on our review, we determined Additionally, we confirmed that the ● Comparable Services ● that the fund delivers value. fund is priced at a reasonable level AFM Costs ● Economies of Scale when compared to both an external Performance ● Quality of Service peer group and to similar BlackRock Our assessment concluded that the ● Classes of Units fund is delivering on its objective of funds. capital growth over the three- and Classes of Units Comparable Market Rates five-year periods. Also, the fund We have looked at charges across all 0.45% 0.51% 1 2 outperformed its Morningstar peer unit classes in the fund. We have Fund OCF Peer Group OCF group, ranking in the top quartile for taken all reasonable steps to identify performance over those periods. investors who are in a higher > Click for more fund information.

1 OCF for A Income class of fund 2 Fund is not assigned to IA sector; median OCF for broad group sector recommended by Fitz Partners

Value Assessment | As of June 2020 | 39 BlackRock Asia Fund Retail Authorised Unit Trusts

The fund aims to provide a return on Costs, Charges & Service Quality investment, generated through an We reviewed the AFM costs increase in the value of the assets associated with the fund, together held by the fund (gross of fees) over with the quality of services provided five or more consecutive years by and benefits generated from our investing in equities of companies economies of scale, and concluded based in Asia, excluding Japan. that the fund is appropriately priced. Overall Rating Additionally, we confirmed that the Delivers value Benchmark fund is priced at a reasonable level MSCI All Country Asia ex Japan when compared to both an external Index peer group determined by the IA and Assessment Criteria Morningstar / IA Categories to similar BlackRock funds. ● Performance EAA Fund Asia ex-Japan Equity / ● Comparable Market Rates Classes of Units Asia Pacific Excluding Japan ● Comparable Services We have looked at charges across ● AFM Costs Overall Assessment unit classes in the fund. We have ● Economies of Scale Based on our review, we determined taken reasonable steps to identify ● Quality of Service that the fund delivers value. investors eligible for a lower priced ● Classes of Units Performance unit class and, where identified, The fund outperformed its have acted in their best interests by Comparable Market Rates benchmark over the three- and five- giving notice of conversion. Eligible 0.97% 1.05% Fund OCF1 Peer Group OCF2 year periods and performed better investors in the A unit class were than the median of its Morningstar moved to the D unit class and are peer group for those periods. being charged lower fees as a result. > Click for more fund information.

BlackRock Asia Special Situations Fund Retail Authorised Unit Trusts

The fund aims to provide a return on than the median of its Morningstar investors in the A unit class were investment, generated through an peer group over the five-year period. moved to the D unit class and are increase in the value of the assets being charged lower fees as a result. Costs, Charges & Service Quality held by the fund and/or income We reviewed the AFM costs received from those assets (gross of associated with the fund, together fees) by investing in equities of Overall Rating with the quality of services provided companies based in Asia, excluding Delivers value and benefits generated from our Japan. economies of scale, and concluded Benchmark that the fund is appropriately priced. MSCI All Country Asia ex Japan Additionally, we confirmed that the Assessment Criteria Index fund is priced at a reasonable level ● Performance when compared to both an external ● Comparable Market Rates Morningstar / IA Categories ● peer group determined by the IA and Comparable Services EAA Fund Asia ex-Japan Equity / ● AFM Costs to similar BlackRock funds. Asia Pacific Excluding Japan ● Economies of Scale Classes of Units ● Quality of Service Overall Assessment We have looked at charges across ● Classes of Units Based on our review, we determined unit classes in the fund. We have that the fund delivers value. taken reasonable steps to identify Comparable Market Rates Performance investors eligible for a lower-priced 1.02% 1.05% 1 2 While the fund underperformed its unit class and, where identified, Fund OCF Peer Group OCF benchmark over the three- and five- have acted in their best interests by year periods, it performed better giving notice of conversion. Eligible > Click for more fund information.

1 OCF for D Accumulation class of fund 2 IA sector median OCF

Value Assessment | As of June 2020 | 40 BlackRock Balanced Growth Portfolio Fund Retail Authorised Unit Trusts

The fund aims to provide a return on periods and also outperformed its Classes of Units investment, generated through an Morningstar peer group, ranking in We have looked at charges across increase in the value of the assets the top quartile. unit classes in the fund. We have held by the fund, with the taken reasonable steps to identify Costs, Charges & Service Quality opportunity for additional income investors eligible for a lower priced We reviewed the AFM costs generation depending on market unit class and, where identified, associated with the fund, together conditions. have acted in their best interests by with the quality of services provided giving notice of conversion. Eligible Benchmark and benefits generated from our investors in the A unit class were The IA OE Mixed Investment 40%- economies of scale, and concluded moved to the D unit class and are 85% Shares Average Sector should that the charges should receive being charged lower fees as a result. be used by unit holders to compare further consideration as the fund is the performance of the fund. Note: priced at a premium when compared Composite of 30% FTSE All Share, to an external peer group Overall Rating 45% FTSE World ex-UK, 25% determined by the IA and to similar Delivers value plus action Barclays Global Aggregate Index (for BlackRock funds. This is largely portfolio construction purposes) driven by an Annual Service Charge of 15bps that is a component of the Morningstar / IA Categories fund’s OCF. There were no relevant Assessment Criteria EAA Fund GBP Moderately segregated accounts for ● Performance Adventurous Allocation / Mixed ● comparison. Comparable Market Rates Investment 40-85% Shares ● Comparable Services To remedy this cost disparity, we ● AFM Costs Overall Assessment have made the decision to ● Economies of Scale Based on our review, we determined implement a reduction of the Annual ● Quality of Service that the fund delivers value. We have Service Charge to 5bps. This will be ● Classes of Units initiated action to improve value effective as of 30th November further through a fee reduction. Comparable Market Rates 2020. Please see the updated Performance prospectus at that date for further 0.96% 0.79% Fund OCF1 Peer Group OCF2 Our assessment concluded the fund details by unit class. outperformed its benchmark (IA sector) over the three- and five-year > Click for more fund information.

1 OCF for D Accumulation class of fund 2 IA sector median OCF

Value Assessment | As of June 2020 | 41 BlackRock Balanced Managed Fund BlackRock Collective Investment Funds

The fund aims to provide a return on Performance investors to that serves broadly the investment generated through an Our assessment concluded that the same purpose. increase in the value of the assets fund outperformed its benchmark held by the fund and/or income (IA sector) over the three- and five- received by those assets. year periods and also outperformed its Morningstar peer group, ranking Overall Rating Benchmark in the top quartile. Delivers value The IA OE Mixed Investment 40%- 85% Shares Average Sector should Costs, Charges & Service Quality be used by unit-holders to compare We reviewed the AFM costs the performance of the fund. Note: associated with the fund, together Assessment Criteria composite of 30% FTSE All Share, with the quality of services provided ● Performance 45% FTSE World ex-UK, 25% and benefits generated from our ● Comparable Market Rates ● Barclays Global Aggregate Index (for economies of scale, and concluded Comparable Services ● AFM Costs portfolio construction purposes). that it is appropriately priced. ● Economies of Scale Additionally, we confirmed that it is Morningstar / IA Categories ● Quality of Service priced at a reasonable level when EAA Fund GBP Moderately ● Classes of Units compared to both an external peer Adventurous Allocation / Mixed group, determined by the IA, and to Investment 40-85% Shares Comparable Market Rates similar BlackRock funds. 1.55% 1.56% Overall Assessment Fund OCF1 Peer Group OCF2 Based on our review, we determined Classes of Units The fund has a single unit class. that the fund delivers value. There is no cheaper class to convert > Click for more fund information.

1 OCF for A Accumulation class of fund 2 IA sector median OCF

Value Assessment | As of June 2020 | 42 BlackRock Cash Fund Retail Authorised Unit Trusts

The fund aims to provide a rate of associated with the fund, together Classes of Units interest on investment, consistent with the quality of services provided We have looked at charges across with maintaining capital and and benefits generated from our unit classes in the fund. We have ensuring that its underlying assets economies of scale. We concluded taken reasonable steps to identify can easily be bought or sold in the that the charges are high when investors eligible for a lower priced market (in normal market compared to both external and unit class and, where identified, conditions). internal peers. Consequently, we will have acted in their best interests by be effecting permanent giving notice of conversion. Eligible Benchmark management-fee reductions, investors in the A unit class were GBP 1W LIBID effective 30th November, to bring moved to the D unit class and are Morningstar/IA Categories EAA the fund’s expenses more in line being charged lower fees as a result. Fund GBP Money Market - Short with its peer group. Please see the Term / Short Term Money Market updated prospectus at that date for Overall Assessment further details by unit class. Overall Rating Based on our review, we determined Prior to these permanent Delivers value plus action that the fund delivers value. We have reductions, BlackRock had in place a initiated action to improve value fee-waiver policy for the fund that further through a fee reduction. reflects the current low-interest rate Assessment Criteria Performance environment by waiving a portion of ● Performance The fund has delivered a positive the management charges to ● Comparable Market Rates return over its three- and five-year decrease the chance that the fund’s ● Comparable Services ● periods, while also delivering on its net yield goes below 0%. During the AFM Costs ● Economies of Scale objectives of capital preservation one-year period through to 30th ● Quality of Service and offering liquidity. Compared to June, this existing fee waiver ● Classes of Units its Morningstar peer group, the fund resulted in savings of approximately £285,000 to unit holders. There are has underperformed due to its Comparable Market Rates no changes being proposed to the relatively high fees, as opposed to 0.32% 0.18% investment-related considerations. existing fee waiver policy and it will Fund OCF1 Peer Group OCF2 remain in place subsequent to the Costs, Charges & Service Quality fee reduction. We reviewed the AFM costs > Click for more fund information.

1 OCF for D Accumulation class of fund 2 IA sector median OCF

Value Assessment | As of June 2020 | 43 BlackRock Catholic Charities Growth & Income Fund BlackRock Charities Funds

The fund aims to provide a return on the top quartile for performance taken all reasonable steps to identify investment over five or more over the same periods. investors who are in a higher- consecutive years generated through charging class and have acted in The fund was previously structured an increase in the value of the assets their best interests by assessing as a Common Investment Fund held by the fund and/or income whether there are similar classes for (CIF). On 6th December 2019, the received from those assets while which they are eligible. Our CIF closed and the assets were adhering to the fund’s ethical assessment concluded that there transferred to a Charity Authorised investment policy. are no other unit classes that serve Investment Fund (CAIF). The CAIF is broadly the same purpose and thus Benchmark being run with the same investment we have not made any changes to Composite of FTSE Custom All- objective and policy. Please note investors’ holdings. Share ex Tobacco, Defense, that the historical performance Aerospace. Beverages and shown before 6th December 2019 is Investment Trusts (30%); MSCI indicative and is provided when the Overall Rating World SRI Index (30%); BBG Barc fund was run as a CIF. Delivers value Sterling Aggregate: Gilts (20%); Costs, Charges & Service Quality GBP 3M British Pound Sterling We reviewed the AFM costs LIBOR (10%); IPD All Balanced associated with the fund, together Funds Index (10%) Assessment Criteria with the quality of services provided ● Performance Morningstar / IA Categories and benefits generated from our ● Comparable Market Rates EAA Fund GBP Moderately economies of scale, and concluded ● Comparable Services Adventurous Allocation / -- that the fund is appropriately priced. ● AFM Costs Additionally, we confirmed that it is ● Economies of Scale Overall Assessment priced at a reasonable level when ● Quality of Service Based on our review, we determined compared to both an external peer ● Classes of Units that the fund delivers value. group and to similar BlackRock Comparable Market Rates Performance funds. While the fund underperformed its 0.57% 0.56% 1 2 benchmark over the three- and five- Classes of Units Fund OCF Peer Group OCF We have looked at charges across all year periods, it outperformed its unit classes in the fund. We have Morningstar peer group, ranking in > Click for more fund information.

1 OCF for A Income class of fund 2 Fund is not assigned to IA sector; median OCF for broad group sector recommended by Fitz Partners

Value Assessment | As of June 2020 | 44 BlackRock Charities Growth & Income Fund BlackRock Charities Funds

The fund aims to provide a return on as a Common Investment Fund their best interests by assessing investment over five or more (CIF). On 6th December 2019, the whether there are similar classes for consecutive years generated through CIF closed and the assets were which they are eligible. Our an increase in the value of the assets transferred to a Charity Authorised assessment concluded that there held by the fund and/or income Investment Fund (CAIF). The CAIF is are no other unit classes that serve received from those assets while being run with the same investment broadly the same purpose and thus adhering to the fund’s ESG policy. objective and policy. Please note we have not made any changes to that the historical performance investors’ holdings. Benchmark shown before 6th December 2019 is Composite of FTSE Custom All- indicative and relates to when the Share ex Tobacco, Defense, fund was run as a CIF. Aerospace . Beverages and Investment Trusts (30%); MSCI Costs, Charges & Service Quality World SRI Index (30%); BBG Barc We reviewed the AFM costs Overall Rating Sterling Aggregate: Gilts (20%); associated with the fund, together Delivers value GBP 3M British Pound Sterling with the quality of services provided LIBOR (10%); IPD All Balanced and benefits generated from our Funds Index (10%) economies of scale, and concluded Assessment Criteria that the fund is appropriately priced. ● Morningstar / IA Categories Performance Additionally, we confirmed that it is ● Comparable Market Rates EAA Fund Other Allocation / -- priced at a reasonable level when ● Comparable Services Overall Assessment compared to both an external peer ● AFM Costs Based on our review, we determined group and to similar BlackRock ● Economies of Scale ● that the fund delivers value. funds. Quality of Service ● Classes of Units Performance Classes of Units The fund does not have a three-year We have looked at charges across all Comparable Market Rates track record, but has outperformed unit classes in the fund. We have 0.49% 0.51% its benchmark from inception to taken all reasonable steps to identify Fund OCF3 Peer Group OCF2 date. investors who are in a higher- The fund was previously structured charging class and have acted in > Click for more fund information.

1 OCF for C Income class of fund 2 Fund is not assigned to IA sector; median OCF for broad group sector recommended by Fitz Partners

Value Assessment | As of June 2020 | 45 BlackRock Charities UK Bond Fund BlackRock Charities Funds

The fund aims to provide a return on Investment Fund (CAIF). The CAIF is whether there are similar classes for investment generated through being run with the same investment which they are eligible. Our income paid out by assets held by objective and policy. Please note assessment concluded that there the fund. that the historical performance are no other unit classes that serve shown before 6th December 2019 is broadly the same purpose and thus Benchmark indicative and relates to when the we have not made any changes to Composite of: FTSE Actuaries UK fund was run as a CIF. investors’ holdings. Conventional Gilts All Stocks Index (50%) and iBoxx Sterling Non-Gilt Costs, Charges & Service Quality 1-10 Year Index (50%) We reviewed the AFM costs associated with the fund, together Overall Rating Morningstar / IA Categories with the quality of services provided Delivers value EAA Fund GBP Diversified Bond / -- and benefits generated from our Overall Assessment economies of scale, and concluded Based on our review, we determined that the fund is appropriately priced. Assessment Criteria that the fund delivers value. Additionally, we confirmed that it is ● Performance Performance priced at a reasonable level when ● Comparable Market Rates While the fund slightly compared to both an external peer ● Comparable Services ● underperformed its benchmark over group and to similar BlackRock AFM Costs ● Economies of Scale the three- and five-year periods, it funds. ● Quality of Service performed better than the median Classes of Units ● Classes of Units of its Morningstar peer group. We have looked at charges across all The fund was previously structured unit classes in the fund. We have Comparable Market Rates as a Common Investment Fund taken all reasonable steps to identify 0.38% 0.40% 1 2 (CIF). On 6th December 2019, the investors who are in a higher- Fund OCF Peer Group OCF CIF closed and the assets were charging class and have acted in transferred to a Charity Authorised their best interests by assessing > Click for more fund information.

1 OCF for A Income class of fund 2 Fund is not assigned to IA sector; median OCF for broad group sector recommended by Fitz Partners

Value Assessment | As of June 2020 | 46 BlackRock Charities UK Equity ESG Fund BlackRock Charities Funds

The fund aims to provide a return on CIF closed and the assets were their best interests by assessing investment over five or more transferred to a Charity Authorised whether there are similar classes for consecutive years generated through Investment Fund (CAIF). The CAIF is which they are eligible. Our an increase in the value of the assets being run with the same investment assessment concluded that there held by the fund and/or income objective and policy. Please note are no other unit classes that serve received from those assets while that the historical performance broadly the same purpose and thus adhering to the fund’s ESG policy. shown before 6th December 2019 is we have not made any changes to indicative and relates to when the investors’ holdings. Benchmark fund was run as a CIF. FTSE Custom All-Share ex Tobacco Defense Aerospace Beverages and Costs, Charges & Service Quality

Inv. Trust Index We reviewed the AFM costs Overall Rating Delivers value associated with the fund, together Morningstar / IA Categories with the quality of services provided EAA Fund UK Large-Cap Equity / -- and benefits generated from our Overall Assessment economies of scale, and concluded Assessment Criteria Based on our review, we determined that the fund is appropriately priced. ● Performance that the fund delivers value. Additionally, we confirmed that it is ● Comparable Market Rates ● Comparable Services Performance priced at a reasonable level when ● AFM Costs The fund outperformed its compared to both an external peer group and to similar BlackRock ● Economies of Scale benchmark over the three- and five- ● funds. Quality of Service year periods and it also ● Classes of Units outperformed its Morningstar peer Classes of Units group, ranking in the top quartile for We have looked at charges across all Comparable Market Rates performance over the same periods. unit classes in the fund. We have 0.56% 0.55% Fund OCF1 Peer Group OCF2 The fund was previously structured taken all reasonable steps to identify as a Common Investment Fund investors who are in a higher- (CIF). On 6th December 2019, the charging class and have acted in > Click for more fund information.

1 OCF for A Income class of fund 2 Fund is not assigned to IA sector; median OCF for broad group sector recommended by Fitz Partners

Value Assessment | As of June 2020 | 47 BlackRock Charities UK Equity Fund BlackRock Charities Funds

The fund aims to provide a return on Investment Fund (CAIF). The CAIF is whether there are similar classes for investment over five or more being run with the same investment which they are eligible. Our consecutive years generated through objective and policy. Please note assessment concluded that there an increase in the value of the assets that the historical performance are no other unit classes that serve held by the fund and/or income shown before 6th December 2019 is broadly the same purpose and thus received from those assets. indicative and relates to when the we have not made any changes to fund was run as a CIF. investors’ holdings. Benchmark FTSE All-Share TR Index Costs, Charges & Service Quality We reviewed the AFM costs Morningstar / IA Categories associated with the fund, together Overall Rating EAA Fund UK Large-Cap Equity / -- with the quality of services provided Delivers value Overall Assessment and benefits generated from our Based on our review, we determined economies of scale, and concluded that the fund delivers value. that the fund is appropriately priced. Assessment Criteria Performance Additionally, we confirmed that it is ● Performance The fund outperformed its priced at a reasonable level when ● Comparable Market Rates ● benchmark over the three- and five- compared to both an external peer Comparable Services ● AFM Costs year periods and it also group and to similar BlackRock ● Economies of Scale outperformed its Morningstar peer funds. ● Quality of Service group, ranking in the top quartile for Classes of Units ● Classes of Units performance over the same periods. We have looked at charges across all The fund was previously structured unit classes in the fund. We have Comparable Market Rates as a Common Investment Fund taken all reasonable steps to identify 0.54% 0.55% Fund OCF1 Peer Group OCF2 (CIF). On 6th December 2019, the investors who are in a higher- CIF closed and the assets were charging class and have acted in transferred to a Charity Authorised their best interests by assessing > Click for more fund information.

1 OCF for A Income class of fund 2 Fund is not assigned to IA sector; median OCF for broad group sector recommended by Fitz Partners

Value Assessment | As of June 2020 | 48 BlackRock Charities UK Equity Index Fund BlackRock Charities Funds

The fund aims to provide a return on expected relative to their investors who are in a higher- investment generated through an benchmarks. charging class and have acted in increase in the value of the assets their best interests by assessing The fund was previously structured held by the fund and/or income whether there are similar classes for as a Common Investment Fund received from those assets by which they are eligible. Our (CIF). On 6th December 2019, the tracking closely the performance of assessment concluded that there CIF closed and the assets were its benchmark. are no other unit classes that serve transferred to a Charity Authorised broadly the same purpose and thus Benchmark Investment Fund (CAIF). The CAIF is we have not made any changes to FTSE All-Share Index being run with the same investment investors’ holdings. objective and policy. Please note Morningstar / IA Categories that the historical performance EAA Fund UK Large-Cap Equity / -- shown before 6th December 2019 is Overall Assessment indicative and relates to when the Based on our review, we determined fund was run as a CIF. Overall Rating that the fund delivers value. Costs, Charges & Service Quality Delivers value Performance We reviewed the AFM costs Although the fund underperformed associated with the fund, together its benchmark over the one-year with the quality of services provided Assessment Criteria period outside the expected range, and benefits generated from our ● Performance its underperformance was driven by economies of scale, and concluded ● Comparable Market Rates dividend cancellations in UK that the fund is appropriately priced. ● Comparable Services holdings after the onset of the Additionally, we confirmed that it is ● AFM Costs COVID-19 crisis. We believe this is a priced at a reasonable level when ● Economies of Scale temporary and exceptional compared to both an external peer ● Quality of Service circumstance, not reflective of group and to similar BlackRock ● Classes of Units normal market conditions. Dividend funds. cancellations reduce the Comparable Market Rates opportunity for index funds to add Classes of Units 0.10% 0.09% We have looked at charges across all Fund OCF1 Peer Group OCF2 value because they reduce the unit classes in the fund. We have income the funds receive. This taken all reasonable steps to identify makes them less tax efficient than > Click for more fund information.

1 OCF for A Income class of fund 2 Fund is not assigned to IA sector; median OCF for broad group sector recommended by Fitz Partners

Value Assessment | As of June 2020 | 49 BlackRock Consensus 35 Fund BlackRock Non-UCITS Retail Funds (2)

The fund aims to provide a return on Costs, Charges & Service Quality investment generated through an We reviewed the AFM costs increase in the value of the assets associated with the fund, together held by the fund and/or income with the quality of services provided received from those assets by and benefits generated from our investing in units or shares of economies of scale, and concluded collective investment schemes. that the fund is appropriately priced. Additionally, we confirmed that it is Overall Rating Benchmark priced at a reasonable level when Delivers value Lipper ABI Mixed Investment 0-35% compared to both an external peer Shares Pension Sector group determined by the IA and to Morningstar / IA Categories similar BlackRock funds. Assessment Criteria EAA Fund GBP Moderately Cautious ● Classes of Units Performance Allocation / Mixed Investment ● We have looked at charges across Comparable Market Rates 0-35% Shares ● Comparable Services unit classes in the fund. We have ● AFM Costs Overall Assessment taken reasonable steps to identify ● Economies of Scale Based on our review, we determined investors eligible for a lower priced ● Quality of Service that the fund delivers value. unit class and, where identified, ● Classes of Units Performance have acted in their best interests by Our assessment concluded that the giving notice of conversion. Eligible Comparable Market Rates fund is delivering on its objective of investors in the A unit class were 0.22% 0.82% 1 2 tracking its benchmark within a moved to the D unit class and are Fund OCF Peer Group OCF reasonable margin over the one- being charged lower fees as a result. year period. > Click for more fund information.

BlackRock Consensus 60 Fund BlackRock Non-UCITS Retail Funds (2)

The fund aims to provide a return on Costs, Charges & Service Quality investment generated through an We reviewed the AFM costs increase in the value of the assets associated with the fund, together held by the fund and/or income with the quality of services provided received from those assets by and benefits generated from our investing in units or shares of economies of scale, and concluded collective investment schemes. that the fund is appropriately priced. Overall Rating Additionally, we confirmed that it is Delivers value Benchmark priced at a reasonable level when Lipper ABI Mixed Investment compared to both an external peer 20-60% Shares Pension Sector group determined by the IA and to Assessment Criteria Morningstar / IA Categories similar BlackRock funds. ● Performance EAA Fund GBP Moderate Allocation ● Comparable Market Rates Classes of Units / Mixed Investment 20-60% Shares ● Comparable Services We have looked at charges across ● AFM Costs Overall Assessment unit classes in the fund. We have ● Economies of Scale Based on our review, we determined taken reasonable steps to identify ● Quality of Service that the fund delivers value. investors eligible for a lower priced ● Classes of Units Performance unit class and, where identified, Our assessment concluded that the have acted in their best interests by Comparable Market Rates fund is delivering on its objective of giving notice of conversion. Eligible 0.22% 0.91% Fund OCF1 Peer Group OCF2 tracking its benchmark within a investors in the A unit class were reasonable margin over the one- moved to the D unit class and are year period. being charged lower fees as a result. > Click for more fund information.

1 OCF for D Accumulation class of fund 2 IA sector median OCF

Value Assessment | As of June 2020 | 50 BlackRock Consensus 70 Fund BlackRock Non-UCITS Retail Funds (2)

The fund aims to provide a return on Costs, Charges & Service Quality investment generated through an We reviewed the AFM costs increase in the value of the assets associated with the fund, together held by the fund and/or income with the quality of services provided received from those assets by and benefits generated from our investing in units or shares of economies of scale, and concluded collective investment schemes. that the fund is appropriately priced. Additionally, we confirmed that it is Benchmark priced at a reasonable level when Composite of 60% the Lipper ABI Overall Rating compared to both an external peer Mixed Investment 20-60% Shares Delivers value group determined by the IA and to Pension Sector and 40% the Lipper similar BlackRock funds. ABI Mixed Investment 40-85% Shares Pension Sector Classes of Units We have looked at charges across Assessment Criteria Morningstar / IA Categories ● unit classes in the fund. We have Performance EAA Fund GBP Moderate Allocation ● Comparable Market Rates taken reasonable steps to identify / Mixed Investment 40-85% Shares ● Comparable Services investors eligible for a lower priced ● AFM Costs Overall Assessment unit class and, where identified, ● Economies of Scale Based on our review, we determined have acted in their best interests by ● Quality of Service that the fund delivers value. giving notice of conversion. Eligible ● Classes of Units Performance investors in the A unit class were Our assessment concluded that the moved to the D unit class and are Comparable Market Rates fund is delivering on its objective of being charged lower fees as a result. 0.22% 0.82% Fund OCF1 Peer Group OCF2 tracking its benchmark within a reasonable margin over the one- year period. > Click for more fund information.

BlackRock Consensus 85 Fund BlackRock Non-UCITS Retail Funds (2)

The fund aims to provide a return on reasonable margin over the one- investors in the A unit class were investment generated through an year period. moved to the D unit class and are increase in the value of the assets being charged lower fees as a result. Costs, Charges & Service Quality held by the fund and/or income We reviewed the AFM costs received from those assets by associated with the fund, together investing in units or shares of Overall Rating with the quality of services provided collective investment schemes. Delivers value and benefits generated from our Benchmark economies of scale, and concluded Lipper ABI Mixed Investment 40%- that the fund is appropriately priced. 85% Shares Pension Sector. Additionally, we confirmed that it is Assessment Criteria priced at a reasonable level when ● Performance Morningstar / IA Categories compared to both an external peer ● Comparable Market Rates EAA Fund GBP Moderately ● group determined by the IA and to Comparable Services Adventurous Allocation / Mixed ● AFM Costs similar BlackRock funds. Investment 40-85% Shares ● Economies of Scale Classes of Units ● Quality of Service Overall Assessment We have looked at charges across ● Classes of Units Based on our review, we determined unit classes in the fund. We have that the fund delivers value. taken reasonable steps to identify Comparable Market Rates Performance investors eligible for a lower priced 0.23% 0.82% 1 2 Our assessment concluded that the unit class and, where identified, Fund OCF Peer Group OCF fund is delivering on its objective of have acted in their best interests by tracking its benchmark within a giving notice of conversion. Eligible > Click for more fund information.

1 OCF for D Accumulation class of fund 2 IA sector median OCF

Value Assessment | As of June 2020 | 51 BlackRock Consensus 100 Fund BlackRock Non-UCITS Retail Funds (2)

The fund aims to provide a return on Costs, Charges & Service Quality investment generated through an We reviewed the AFM costs increase in the value of the assets associated with the fund, together held by the fund and/or income with the quality of services provided received from those assets by and benefits generated from our investing in units or shares of economies of scale, and concluded collective investment schemes. that the fund is appropriately priced. Overall Rating Additionally, we confirmed that the Delivers value Benchmark fund is priced at a reasonable level Lipper ABI Global Equity Pensions when compared to both an external Sector peer group determined by the IA and Assessment Criteria Morningstar / IA Categories to similar BlackRock funds. ● Performance EAA Fund GBP Adventurous ● Comparable Market Rates Classes of Units Allocation / Global ● Comparable Services We have looked at charges across ● AFM Costs Overall Assessment unit classes in the fund. We have ● Economies of Scale Based on our review, we determined taken reasonable steps to identify ● Quality of Service that the fund delivers value. investors eligible for a lower priced ● Classes of Units Performance unit class and, where identified, Our assessment concluded that the have acted in their best interests by Comparable Market Rates fund is delivering on its objective of giving notice of conversion. Eligible 0.24% 0.97% Fund OCF1 Peer Group OCF2 tracking its benchmark within a investors in the A unit class were reasonable margin over the one- moved to the D unit class and are year period. being charged lower fees as a result. > Click for more fund information.

BlackRock Continental European Fund Retail Authorised Unit Trusts

The fund aims to provide a return on Costs, Charges & Service Quality investment generated through an We reviewed the AFM costs increase in the value of the assets associated with the fund, together held by the fund (gross of fees) over with the quality of services provided five or more consecutive years by and benefits generated from our investing in equities of companies economies of scale, and concluded incorporated or listed in Europe – that the fund is appropriately priced. excluding the UK. Additionally, we confirmed that it is Overall Rating priced at a reasonable level when Delivers value Benchmark compared to both an external peer FTSE World Europe ex UK Index group determined by the IA and to Morningstar / IA Categories similar BlackRock funds. Assessment Criteria EAA Fund Europe ex-UK Equity / ● Classes of Units Performance Europe Excluding UK ● We have looked at charges across Comparable Market Rates ● Comparable Services Overall Assessment unit classes in the fund. We have ● AFM Costs Based on our review, we determined taken reasonable steps to identify ● Economies of Scale that the fund delivers value. investors eligible for a lower priced ● Quality of Service Performance unit class and, where identified, ● Classes of Units Our assessment concluded that the have acted in their best interests by fund outperformed its benchmark giving notice of conversion. Eligible Comparable Market Rates over the three- and five-year periods investors in the A unit class were 0.92% 0.93% 1 2 and performed in the top quartile of moved to the D unit class and are Fund OCF Peer Group OCF its Morningstar peer group for the being charged lower fees as a result. same periods. > Click for more fund information.

1 OCF for D Accumulation class of fund 2 IA sector median OCF

Value Assessment | As of June 2020 | 52 BlackRock Continental European Income Fund Retail Authorised Unit Trusts

The fund aims to provide an above and performed better than the investors in the A unit class were average income return (gross of fees) median of its Morningstar peer moved to the D unit class and are from its equity investments group over the same periods. being charged lower fees as a result. compared to the income produced Costs, Charges & Service Quality by European equity markets We reviewed the AFM costs (excluding the UK) as represented by associated with the fund, together its benchmark, without sacrificing Overall Rating with the quality of services provided capital growth, over five or more Delivers value and benefits generated from our consecutive years. economies of scale, and concluded Benchmark that the fund is appropriately priced. FTSE All World Developed Europe Additionally, we confirmed that the Assessment Criteria Ex UK Index fund is priced at a reasonable level ● Performance when compared to both an external ● Comparable Market Rates Morningstar / IA Categories ● peer group determined by the IA and Comparable Services EAA Fund Europe ex-UK Equity / ● AFM Costs to similar BlackRock funds. Europe Excluding UK ● Economies of Scale Classes of Units ● Quality of Service Overall Assessment We have looked at charges across ● Classes of Units Based on our review, we determined unit classes in the fund. We have that the fund delivers value. taken reasonable steps to identify Comparable Market Rates Performance investors eligible for a lower priced 0.93% 0.93% 1 2 Our assessment concluded that the unit class and, where identified, Fund OCF Peer Group OCF fund outperformed its benchmark have acted in their best interests by over the three- and five-year periods giving notice of conversion. Eligible > Click for more fund information.

BlackRock Corporate Bond 1-10 Year Fund BlackRock Collective Investment Funds

The fund aims to provide a return on Costs, Charges & Service Quality investors in the A and L unit classes investment by tracking closely the We reviewed the AFM costs were moved to the D unit class and performance of its benchmark. associated with the fund, together are being charged lower fees as a with the quality of services provided result. Benchmark and benefits generated from our Composite of: Bank of America economies of scale, and concluded Merrill Lynch Sterling Corporate that the fund is appropriately priced. Securities 1-5 Year Index and Bank Additionally, we found that while the of America Merrill Lynch Sterling Overall Rating OCF was above median as Corporate Securities 5-10 Year Delivers value compared to its broad peer group, it Index. was below median compared to the Morningstar / IA Categories most relevant, independently EAA Fund GBP Corporate Bond / £ selected custom peer group. Our Assessment Criteria Corporate Bond analysis also confirmed that the ● Performance fund is priced at a reasonable level ● Comparable Market Rates Overall Assessment ● compared to similar BlackRock Comparable Services Based on our review, we determined ● AFM Costs funds. that the fund delivers value. ● Economies of Scale ● Performance Classes of Units Quality of Service ● Our assessment concluded that the We have looked at charges across Classes of Units fund is delivering on its objective of unit classes in the fund. We have Comparable Market Rates tracking its benchmark within a taken reasonable steps to identify investors eligible for a lower priced 0.17% 0.15% reasonable margin over the one- Fund OCF1 Peer Group OCF2 year period. unit class and, where identified, have acted in their best interests by giving notice of conversion. Eligible > Click for more fund information.

1 OCF for D Accumulation class of fund 2 IA sector median OCF

Value Assessment | As of June 2020 | 53 BlackRock Corporate Bond Fund Retail Authorised Unit Trusts

The fund aims to provide a return on (except for the A unit class, which moved to the D unit class and are investment generated through an performed around median). being charged lower fees as a result. increase in the value of the assets Costs, Charges & Service Quality held by the fund and/or income We reviewed the AFM costs received from those assets (gross of associated with the fund, together fees) by investing in corporate bonds with the quality of services provided and other interest-bearing securities. Overall Rating and benefits generated from our Delivers value Benchmark economies of scale, and concluded ICE BofAML Sterling Corporate & that the fund is appropriately priced. Collateralized Index Additionally, we confirmed that it is priced at a reasonable level when Assessment Criteria Morningstar / IA Categories compared to both an external peer ● Performance EAA Fund GBP Corporate Bond / £ group determined by the IA and to ● Comparable Market Rates Corporate Bond ● similar BlackRock funds. Comparable Services ● Overall Assessment AFM Costs ● Based on our review, we determined Classes of Units Economies of Scale We have looked at charges across ● Quality of Service that the fund delivers value. unit classes in the fund. We have ● Classes of Units Performance taken reasonable steps to identify While the fund underperformed its investors eligible for a lower priced Comparable Market Rates benchmark over the three- and five- unit class and, where identified, 0.57% 0.60% Fund OCF1 Peer Group OCF2 year periods, it performed better have acted in their best interests by than the median of its Morningstar giving notice of conversion. Eligible peer group over the same periods investors in the A unit class were > Click for more fund information.

BlackRock Dynamic Allocation Fund Retail Authorised Unit Trusts

The fund aims to provide a return on better than the median of its moved to the D unit class and are investment generated through an Morningstar peer group over the being charged lower fees as a result. increase in the value of the assets three- and five-year periods. held by the fund and/or income Costs, Charges & Service Quality received from those assets over five We reviewed the AFM costs consecutive years which exceeds the associated with the fund, together Bank of England’s Base Interest Rate with the quality of services provided by 3.5% (gross of fees). Overall Rating and benefits generated from our Delivers value Benchmark economies of scale, and concluded The Bank of England’s Base Interest that the fund is appropriately priced. Rate plus 3.5% (gross of fees) Additionally, we confirmed that it is priced at a reasonable level when Assessment Criteria Morningstar / IA Categories compared to both an external peer ● Performance EAA Fund GBP Flexible Allocation / group determined by the IA and to ● Comparable Market Rates Specialist similar BlackRock funds. ● Comparable Services Overall Assessment ● AFM Costs Based on our review, we determined Classes of Units ● Economies of Scale We have looked at charges across ● that the fund delivers value. Quality of Service unit classes in the fund. We have ● Classes of Units Performance taken reasonable steps to identify Our assessment concluded that the investors eligible for a lower priced Comparable Market Rates fund outperformed its benchmark unit class and, where identified, 0.50% 1.06% 1 2 over the three-year period, but have acted in their best interests by Fund OCF Peer Group OCF lagged its benchmark over the five- giving notice of conversion. Eligible year period. The fund performed investors in the A unit class were > Click for more fund information.

1 OCF for D Accumulation class of fund 2 IA sector median OCF

Value Assessment | As of June 2020 | 54 BlackRock Dynamic Diversified Growth Fund Retail Authorised Unit Trusts

The fund aims to provide a return on of its Morningstar peer group over investors in the A unit class were investment generated through an the same period. moved to the D unit class and are increase in the value of the assets being charged lower fees as a result. Costs, Charges & Service Quality held by the fund and/or income We reviewed the AFM costs received from those assets over three associated with the fund, together consecutive years, which exceeds the with the quality of services provided Bank of England’s Base Interest Rate Overall Rating and benefits generated from our by 3.5% (gross of fees). Delivers value economies of scale, and concluded Benchmark that the fund is appropriately priced. The Bank of England’s Base Interest Additionally, we confirmed that it is Rate plus 3.5% (gross of fees) priced at a reasonable level when Assessment Criteria ● compared to both an external peer Performance Morningstar / IA Categories ● Comparable Market Rates group determined by the IA and to EAA Fund GBP Flexible Allocation / ● Comparable Services similar BlackRock funds. Specialist ● AFM Costs Classes of Units ● Economies of Scale Overall Assessment We have looked at charges across ● Quality of Service Based on our review, we determined unit classes in the fund. We have ● Classes of Units that the fund delivers value. taken reasonable steps to identify Comparable Market Rates Performance investors eligible for a lower priced Our assessment concluded that the unit class and, where identified, 0.65% 1.06% Fund OCF1 Peer Group OCF2 fund outperformed its benchmark have acted in their best interests by over the three-year period and giving notice of conversion. Eligible performed better than the median > Click for more fund information.

1 OCF for D Accumulation class of fund 2 IA sector median OCF

Value Assessment | As of June 2020 | 55 BlackRock Emerging Markets Absolute Alpha Fund Absolute Funds

The fund aims to provide a positive – review fund performance and take of scale, and concluded that the or absolute – return on investment action when warranted. charges are at a premium. This is over any 12-month period regardless driven by our assessment of the Performance of prevailing market conditions. fund’s pricing as compared to an The fund underperformed its aim of external peer group determined by Benchmark delivering positive absolute return, the IA. LIBOR 3 Month (GBP) resulting in negative performance over both the three- and five-year Classes of Units Morningstar / IA Categories periods. All unit classes of the fund have EAA Fund Alt - Long/Short Equity - been liquidated. Other / Targeted Absolute Return The management techniques for an absolute return fund are more wide Overall Assessment ranging than for a traditional mutual Based on our review, we determined fund and can change year to year in that the fund did not consistently Overall Rating order to give the investment deliver value. Does not deliver value manager options to drive a total Prior to the value assessment, the return to investors. The fund fund was flagged for review as part employed different techniques, of our ongoing fund governance. including taking long positions and Assessment Criteria This review resulted in the decision using derivatives to take synthetic ● Performance to close the fund based on several long and short positions. Since its ● Comparable Market Rates ● factors, including performance, low inception five years ago, the fund Comparable Services ● investor interest and commercial was inconsistent in annually AFM Costs ● Economies of Scale considerations. Investors were delivering on its absolute return ● Quality of Service informed in June 2020 and the fund objective. ● Classes of Units was liquidated in August 2020. Costs, Charges & Service Quality The fund was included in our value In addition to performance, we Comparable Market Rates assessment as it held assets on the reviewed the AFM costs associated 1.23% 0.93% 1 2 report reference date. The closure of with the fund together with the Fund OCF Peer Group OCF the fund is reflective of BlackRock’s quality of services provided and long-term commitment to regularly benefits generated from economies > Click for more fund information.

1 OCF for D Accumulation class of fund 2 IA sector median OCF

Value Assessment | As of June 2020 | 56 BlackRock Emerging Markets Fund Retail Authorised Unit Trusts

The fund aims to provide a return on Costs, Charges & Service Quality investment generated through an We reviewed the AFM costs increase in the value of the assets associated with the fund, together held by the fund (gross of fees) over with the quality of services provided five or more consecutive years by and benefits generated from our investing in companies incorporated economies of scale, and concluded or listed in emerging markets. that the fund is appropriately priced. Additionally, we confirmed that the Overall Rating Benchmark fund is priced at a reasonable level Delivers value MSCI Emerging Markets Index when compared to both an external Morningstar / IA Categories peer group determined by the IA and EAA Fund Global Emerging Markets to similar BlackRock funds. Assessment Criteria Equity / Global Emerging Markets ● Classes of Units Performance ● Comparable Market Rates Overall Assessment We have looked at charges across ● Comparable Services Based on our review, we determined unit classes in the fund. We have ● AFM Costs that the fund delivers value. taken reasonable steps to identify ● Economies of Scale Performance investors eligible for a lower priced ● Quality of Service Our assessment concluded that the unit class and, where identified, ● Classes of Units fund outperformed its benchmark have acted in their best interests by over the three- and five-year periods giving notice of conversion. Eligible Comparable Market Rates and it also outperformed its investors in the A unit class were 0.96% 1.07% 1 2 Morningstar peer group, ranking in moved to the D unit class and are Fund OCF Peer Group OCF the top quartile for performance being charged lower fees as a result. over the same periods. > Click for more fund information.

BlackRock European Absolute Alpha Fund Absolute Funds

The fund aims to provide a positive associated with the fund, together absolute return on investment (i.e. an with the quality of services provided increase in the overall value of the and benefits generated from our fund) (gross of fees) over any economies of scale, and concluded 12-month period regardless of that the fund is appropriately priced. market conditions. Additionally, we confirmed that it is priced at a reasonable level when Benchmark Overall Rating compared to both an external peer LIBOR 3 Month (GBP) Delivers value group determined by the IA and to Morningstar / IA Categories similar BlackRock funds. EAA Fund Alt - Market Neutral - Classes of Units Equity / Targeted Absolute Return Assessment Criteria We have looked at charges across all ● Performance Overall Assessment unit classes in the fund. We have ● Comparable Market Rates Based on our review, we determined taken all reasonable steps to identify ● Comparable Services that the fund delivers value. investors who are in a higher- ● AFM Costs Performance charging class and have acted in ● Economies of Scale Our assessment concluded that the their best interests by assessing ● Quality of Service ● fund is delivering on its objective of whether there are similar classes for Classes of Units delivering positive absolute return which they are eligible. Our Comparable Market Rates over the assessed three- and five- assessment concluded that there are no other unit classes that serve 0.92% 0.93% year periods. 1 2 broadly the same purpose and thus Fund OCF Peer Group OCF Costs, Charges & Service Quality we have not made any changes to We reviewed the AFM costs investors’ holdings. > Click for more fund information.

1 OCF for D Accumulation class of fund 2 IA sector median OCF

Value Assessment | As of June 2020 | 57 BlackRock European Dynamic Fund Retail Authorised Unit Trusts

The fund aims to provide a return on the top quartile for performance investors in the A unit class were investment generated through an over the same periods. moved to the D unit class and are increase in the value of the assets being charged lower fees as a result. Costs, Charges & Service Quality held by the fund (gross of fees) over We reviewed the AFM costs five or more consecutive years by associated with the fund, together investing in companies incorporated with the quality of services provided or listed in Europe – excluding the Overall Rating and benefits generated from our UK. Delivers value economies of scale, and concluded Benchmark that the fund is appropriately priced. FTSE World Europe ex UK Index Additionally, we confirmed that it is priced at a reasonable level when Assessment Criteria Morningstar / IA Categories compared to both an external peer ● Performance EAA Fund Europe ex-UK Equity / ● group determined by the IA and to Comparable Market Rates Europe Excluding UK ● Comparable Services similar BlackRock funds. ● AFM Costs Overall Assessment ● Economies of Scale Based on our review, we determined Classes of Units We have looked at charges across ● Quality of Service that the fund delivers value. unit classes in the fund. We have ● Classes of Units Performance taken reasonable steps to identify Comparable Market Rates Our assessment concluded that the investors eligible for a lower priced fund outperformed its benchmark unit class and, where identified, 0.92% 0.93% Fund OCF1 Peer Group OCF2 over the three- and five-year periods have acted in their best interests by and also outperformed its giving notice of conversion. Eligible Morningstar peer group, ranking in > Click for more fund information.

BlackRock Global Equity Fund BlackRock Non-UCITS Retail Funds (2)

The fund aims to provide a return on reasonable margin over the one- assessment concluded that there investment generated through an year period. Given the fund’s are no other unit classes that serve increase in the value of the assets investment approach, we applied broadly the same purpose and thus held by the fund and/or income the index methodology as opposed we have not made any changes to received from those assets by to active. investors’ holdings. investing in units or shares of Costs, Charges & Service Quality collective investment schemes. The We reviewed the AFM costs fund is actively managed, but the associated with the fund, together other investment funds in which it with the quality of services provided Overall Rating invests are passively managed index and benefits generated from our Delivers value funds. economies of scale, and concluded Benchmark that the fund is appropriately priced. Composite of 50% FTSE All Share Additionally, we confirmed that it is Index and 50% FTSE World ex-UK priced at a reasonable level when Assessment Criteria ● Performance Index compared to both an external peer ● Comparable Market Rates group determined by the IA and to Morningstar / IA Categories ● Comparable Services similar BlackRock funds. EAA Fund Global Large-Cap Blend ● AFM Costs Equity / Global Classes of Units ● Economies of Scale We have looked at charges across all ● Quality of Service Overall Assessment ● unit classes in the fund. We have Classes of Units Based on our review, we determined taken all reasonable steps to identify that the fund delivers value. Comparable Market Rates investors who are in a higher 0.22% 0.25% Performance charging class and have acted in Fund OCF1 Peer Group OCF2 Our assessment concluded that the their best interests by assessing fund is delivering on its objective of whether there are similar classes for tracking its benchmark within a which they are eligible. Our > Click for more fund information.

1 OCF for D Accumulation class of fund 2 IA sector median OCF Value Assessment | As of June 2020 | 58 BlackRock Global Equity Fund Retail Authorised Unit Trusts

The fund aims to provide an income The fund is managed with an taken reasonable steps to identify return on investment that is above income focus and quality bias. This investors eligible for a lower priced average when compared to the has led to underperformance unit class and, where identified, income produced by global equity relative to the benchmark during the have acted in their best interests by markets, without sacrificing capital period noted above in the context of giving notice of conversion. Eligible growth, over five or more consecutive a recent market environment in investors in the A unit class were years. which technology companies, which moved to the D unit class and are typically do not have substantial being charged lower fees as a result. Benchmark dividend yields, have outperformed. MSCI All Countries World Index Further performance monitoring will Morningstar / IA Categories evaluate the fund’s ability to deliver EAA Fund Global Equity Income / against its broad benchmark while Global continuing to deliver on its income Overall Rating Overall Assessment focus. Delivers value plus action Based on our review, we determined Costs, Charges & Service Quality that the fund delivers value. To We reviewed the AFM costs ensure this continues, we have associated with the fund, together taken action in the form of with the quality of services provided Assessment Criteria enhanced monitoring of the fund’s and benefits generated from our ● Performance performance, which includes a economies of scale, and concluded ● Comparable Market Rates ● review of the investment process. that the fund is appropriately priced. Comparable Services ● AFM Costs Additionally, we confirmed that it is Performance ● Economies of Scale priced at a reasonable level when Our assessment concluded that the ● Quality of Service fund has delivered a positive return compared to both an external peer ● Classes of Units over the three- and five-year periods group determined by the IA and to and is in line with its peers in the similar BlackRock funds. Comparable Market Rates Morningstar Global Equity Income Classes of Units 0.93% 1.00% Fund OCF1 Peer Group OCF2 category. However, the fund has We have looked at charges across underperformed relative to its broad unit classes in the fund. We have benchmark. > Click for more fund information.

1 OCF for D Accumulation class of fund 2 IA sector median OCF

Value Assessment | As of June 2020 | 59 BlackRock Global Income Fund Retail Authorised Unit Trusts

The fund aims to provide an income The fund is managed with an investors eligible for a lower priced return on investment that is above income focus and quality bias. This unit class and, where identified, average when compared to the has led to underperformance have acted in their best interests by income produced by the constituents relative to the benchmark during the giving notice of conversion. Eligible of the index, without sacrificing period noted above in the context of investors in the A unit class were capital growth, over five or more a recent market environment in moved to the D unit class and are consecutive years. which technology companies, which being charged lower fees as a result. typically do not have substantial Benchmark dividend yields, have outperformed. MSCI All Countries World Index Further performance monitoring will Morningstar / IA Categories evaluate the fund’s ability to deliver EAA Fund Global Equity Income / against its broad benchmark while Global Equity Income continuing to deliver on its income

Overall Assessment focus. Overall Rating Delivers value plus action Based on our review, we determined Costs, Charges & Service Quality that the fund delivers value. To We reviewed the AFM costs ensure this continues, we have taken associated with the fund, together action in the form of enhanced with the quality of services provided Assessment Criteria monitoring of the fund’s and benefits generated from our ● Performance performance, which includes a economies of scale, and concluded ● Comparable Market Rates review of the investment process. that the fund is appropriately priced. ● Comparable Services Additionally, we confirmed that the ● AFM Costs Performance ● fund is priced at a reasonable level Economies of Scale Our assessment concluded that the ● Quality of Service when compared to both an external fund has delivered a positive return ● Classes of Units over the three- and five-year periods peer group determined by the IA and and in line with its peers in the to similar BlackRock funds. Comparable Market Rates Morningstar Global Equity Income Classes of Units 0.93% 0.98% 1 2 category. However, the fund has We have looked at charges across Fund OCF Peer Group OCF underperformed relative to its broad unit classes in the fund. We have benchmark. taken reasonable steps to identify > Click for more fund information.

1 OCF for D Accumulation class of fund 2 IA sector median OCF

Value Assessment | As of June 2020 | 60 BlackRock Global Unconstrained Equity Fund (UK) Retail Authorised Unit Trusts

The fund aims to provide a return on associated with the fund, together thus we have not made any changes investment generated through an with the quality of services provided to investors’ holdings. increase in the value of the assets and benefits generated from our held by the fund over five years or economies of scale, and concluded more by investing in a global that the fund is appropriately priced. portfolio of equity securities. Additionally, we confirmed that the Overall Rating fund is priced at a reasonable level Too new to rate Benchmark when compared to an external peer MSCI World Index group and to similar BlackRock Morningstar / IA Categories Funds. EAA Fund Global Large-Cap Blend Assessment Criteria ● Equity / -- Classes of Units Performance We have looked at charges across all ● Comparable Market Rates Overall Assessment unit classes in the fund. We have ● Comparable Services We determined that the fund is too taken all reasonable steps to identify ● AFM Costs new to rate, given that it has less investors who are in a higher- ● Economies of Scale ● than 12 months of performance. charging class and have acted in Quality of Service ● Classes of Units Performance their best interests by assessing We will continue to monitor the fund whether there are similar classes for Comparable Market Rates which they could be eligible. Our as part of our standard processes as 0.93% 1.00% it builds its track record. assessment has concluded that Fund OCF1 Peer Group OCF2 there are no other unit classes that Costs, Charges & Service Quality serve broadly the same purpose and We reviewed the AFM costs > Click for more fund information.

1 OCF for D Accumulation class of fund 2 Fund is not assigned to IA sector; median OCF for broad group sector recommended by Fitz Partners

Value Assessment | As of June 2020 | 61 BlackRock Gold and General Fund Retail Authorised Unit Trusts

The fund aims to provide a return on by the UCITS single-issuer Classes of Units investment over five or more concentration limit of 10%. We have looked at charges across consecutive years through Therefore, in periods such as the unit classes in the fund. We have investment in shares of companies reference period, where Newmont taken reasonable steps to identify related to gold mining, commodities Corporation and Barrick Gold investors eligible for a lower priced and precious metals. significantly outperformed the unit class and, where identified, sector, it would be expected that the have acted in their best interests by Benchmark fund might underperform. giving notice of conversion. Eligible FTSE Gold-Mining Index (capped investors in the A unit class were version) The fund’s performance is in line moved to the D unit class and are with the Morningstar peer group. We Morningstar / IA Categories being charged lower fees as a result. further note that the fund provides EAA Fund Sector Equity Precious investors with daily liquidity, which Metals / Specialist we believe is a valuable service to Overall Rating Overall Assessment investors, not provided by all Delivers value Based on our review, we determined competitor funds. that the fund delivers value. Costs, Charges & Service Quality Performance We reviewed the AFM costs Assessment Criteria Our assessment concluded that, associated with the fund, together ● Performance while the fund has performed in line with the quality of services provided ● Comparable Market Rates with its Morningstar category and and benefits generated from our ● Comparable Services delivered a positive return over the economies of scale, and concluded ● AFM Costs three- and five-year periods, it has that the fund is appropriately priced. ● Economies of Scale underperformed its benchmark. Additionally, we confirmed that the ● Quality of Service ● The fund’s benchmark is heavily fund is priced at a reasonable level Classes of Units concentrated in two names, when compared to both an external Comparable Market Rates Newmont Corporation and Barrick peer group determined by the IA and Gold. Each represents considerably to similar BlackRock funds. Relative 1.17% 1.06% Fund OCF1 Peer Group OCF2 more than 10% of the benchmark to BlackRock segregated accounts, index, while the fund is constrained fees for the fund are priced at a premium. > Click for more fund information.

1 OCF for D Accumulation class of fund 2 IA sector median OCF

Value Assessment | As of June 2020 | 62 BlackRock Growth and Recovery Fund Institutional Authorised Unit Trusts

The fund aims to provide a return on and benefits generated from our investment generated through an economies of scale, and concluded increase in the value of the assets that the fund is appropriately priced. held by the fund and/or income Additionally, we confirmed that it is received from those assets. priced at a reasonable level when compared to an external peer group. Benchmark The fund does not have any Numis Smaller Companies plus AIM comparable BlackRock funds, ex-Investment Trusts Index Overall Rating segregated mandates or unit Delivers value Morningstar / IA Categories classes to evaluate fees against. EAA Fund UK Small-Cap Equity / -- Classes of Units Overall Assessment We have looked at charges across all Assessment Criteria Based on our review, we determined unit classes in the fund. We have ● Performance that the fund delivers value. taken all reasonable steps to identify ● Comparable Market Rates ● Comparable Services Performance investors who are in a higher ● AFM Costs The fund outperformed its charging class and have acted in their best interests by assessing ● Economies of Scale benchmark over the three- and five- ● whether there are similar classes for Quality of Service year periods and performed better ● Classes of Units than the median of its Morningstar which they are eligible. Our peer group over the same periods. assessment concluded that there Comparable Market Rates are no other unit classes that serve Costs, Charges & Service Quality 1.09% 1.60% broadly the same purpose and thus Fund OCF1 Peer Group OCF2 We reviewed the AFM costs we have not made any changes to associated with the fund, together investors’ holdings. with the quality of services provided > Click for more fund information.

BlackRock Institutional Bond Funds - All Stocks Corporate Bond BlackRock Institutional Bond Funds

The fund aims to outperform its economies of scale, and concluded benchmark gross of fees over five that the fund is appropriately priced. consecutive years. Additionally, we confirmed that it is priced at a reasonable level when Benchmark compared to both an external peer iBoxx Sterling Non-Gilts Bond Index group and to similar BlackRock Morningstar / IA Categories funds. Overall Rating EAA Fund GBP Corporate Bond / -- Delivers value Classes of Units Overall Assessment We have looked at charges across all Based on our review, we determined unit classes in the fund. We have that the fund delivers value. taken all reasonable steps to identify Assessment Criteria Performance investors who are in a higher- ● Performance The fund outperformed its charging class and have acted in ● Comparable Market Rates ● benchmark over the three- and five- their best interests by assessing Comparable Services ● AFM Costs year periods and also outperformed whether there are similar classes for which they are eligible. Our ● Economies of Scale its Morningstar peer group, ranking ● assessment concluded that there Quality of Service above median for performance over ● Classes of Units the same periods. are no other unit classes that serve broadly the same purpose and thus Comparable Market Rates Costs, Charges & Service Quality we have not made any changes to We reviewed the AFM costs 0.02% 0.05% investors’ holdings. Fund OCF3 Peer Group OCF2 associated with the fund, together with the quality of services provided and benefits generated from our > Click for more fund information.

1 OCF for A Income class of fund 2 Fund is not assigned to IA sector; median OCF for broad group sector recommended by Fitz Partners 3 OCF for A Income class of fund

Value Assessment | As of June 2020 | 63 BlackRock Institutional Bond Funds - All Stocks Gilt BlackRock Institutional Bond Funds

The fund aims to outperform its Costs, Charges & Service Quality broadly the same purpose and thus benchmark, gross of fees, over five We reviewed the AFM costs we have not made any changes to consecutive years. associated with the fund, together investors’ holdings. with the quality of services provided Benchmark and benefits generated from our FTSE A UK Gilts All Stocks Index economies of scale, and concluded Morningstar / IA Categories that it is appropriately priced. Overall Rating EAA Fund GBP Government Bond / Additionally, we confirmed that it is Delivers value -- priced at a reasonable level when Overall Assessment compared to both an external Based on our review, we determined custom peer group and to similar Assessment Criteria that the fund delivers value. This BlackRock funds. ● Performance ● Comparable Market Rates fund is in the process of being Classes of Units ● Comparable Services terminated and is no longer We have looked at charges across all ● AFM Costs available for investment. unit classes in the fund. We have ● Economies of Scale Performance taken all reasonable steps to identify ● Quality of Service The fund’s A unit class investors who are in a higher ● Classes of Units outperformed its benchmark over charging class and have acted in the three- and five-year periods and their best interests by assessing Comparable Market Rates also performed well alongside its whether there are similar classes for 0.18% 0.10% 1 2 Morningstar peer group, ranking in which they are eligible. Our Fund OCF Peer Group OCF the second quartile for performance assessment concluded that there are no other unit classes that serve over the same periods. > Click for more fund information.

BlackRock Institutional Bond Funds - Index Linked BlackRock Institutional Bond Funds

The fund aims to outperform its with the quality of services provided benchmark, gross of fees, over five and benefits generated from our consecutive years. economies of scale, and concluded that it is appropriately priced. Benchmark BlackRock does not have any FTSE-A Government Securities Over comparable funds in its product 5 Year Index-Linked Index portfolio, but our assessment Overall Rating Morningstar / IA Categories confirmed that it is priced at a Delivers value EAA Fund GBP Inflation-Linked reasonable level when compared to Bond / -- an external peer group. Overall Assessment Classes of Units Assessment Criteria Based on our review, we determined We have looked at charges across all ● Performance that the fund delivers value. unit classes in the fund. We have ● Comparable Market Rates Performance taken all reasonable steps to identify ● Comparable Services The fund outperformed its investors who are in a higher ● AFM Costs benchmark over the three- and five- charging class and have acted in ● Economies of Scale year periods and also outperformed their best interests by assessing ● Quality of Service ● its Morningstar peer group, ranking whether there are similar classes for Classes of Units in the top quartile for performance which they are eligible. Our Comparable Market Rates over the same time periods. assessment concluded that there are no other unit classes that serve 0.06% 0.06% Fund OCF1 Peer Group OCF2 Costs, Charges & Service Quality broadly the same purpose and thus We reviewed the AFM costs we have not made any changes to associated with the fund, together investors’ holdings. > Click for more fund information.

1 OCF for A Income class of fund 2 Fund is not assigned to IA sector; median OCF for broad group sector recommended by Fitz Partners

Value Assessment | As of June 2020 | 64 BlackRock Institutional Bond Funds - Over 10 Year Corporate Bonds BlackRock Institutional Bond Funds

The fund aims to outperform its and benefits generated from our benchmark, gross of fees, over five economies of scale, and concluded consecutive years. that it is appropriately priced. BlackRock does not have any Benchmark comparable funds in its product iBoxx Sterling Non-Gilts Over 10 portfolio, but our assessment Year Bond Index confirmed that it is priced at a Overall Rating Morningstar / IA Categories reasonable level when compared to Delivers value EAA Fund GBP Corporate Bond / -- an external peer group. Overall Assessment Classes of Units Based on our review, we determined We have looked at charges across all Assessment Criteria that the fund delivers value. unit classes in the fund. We have ● Performance ● Performance taken all reasonable steps to identify Comparable Market Rates ● The fund outperformed its investors who are in a higher Comparable Services ● AFM Costs benchmark over the three- and five- charging class and have acted in their best interests by assessing ● Economies of Scale year periods and also outperformed ● whether there are similar classes for Quality of Service its Morningstar peer group, ranking ● Classes of Units in the top quartile for performance which they are eligible. Our over the same periods. assessment concluded that there Comparable Market Rates are no other unit classes that serve Costs, Charges & Service Quality 0.02% 0.05% broadly the same purpose and thus Fund OCF1 Peer Group OCF2 We reviewed the AFM costs we have not made any changes to associated with the fund, together investors’ holdings. with the quality of services provided > Click for more fund information.

BlackRock Institutional Bond Funds - Over 15 Year Gilt BlackRock Institutional Bond Funds

The fund aims to outperform its Costs, Charges & Service Quality we have not made any changes to benchmark, gross of fees, over five We reviewed the AFM costs investors’ holdings. consecutive years. associated with the fund, together with the quality of services provided Benchmark and benefits generated from our FTSE-A UK Gilts Over 15 Years economies of scale, and concluded Index that it is appropriately priced. Morningstar / IA Categories BlackRock does not have any EAA Fund GBP Government Bond / comparable funds in its product Overall Rating -- portfolio, but our assessment Delivers value Overall Assessment confirmed that it is priced at a Based on our review, we determined reasonable level when compared to that the fund delivers value. This an external custom peer group. Assessment Criteria ● fund is in the process of being Classes of Units Performance ● Comparable Market Rates terminated and is no longer We have looked at charges across all ● Comparable Services available for investment. unit classes in the fund. We have ● AFM Costs Performance taken all reasonable steps to identify ● Economies of Scale The fund outperformed its investors who are in a higher ● Quality of Service benchmark over the three- and five- charging class and have acted in ● Classes of Units year periods (for the A unit class) their best interests by assessing and also outperformed its whether there are similar classes for Comparable Market Rates Morningstar peer group, ranking in which they are eligible. Our 0.21% 0.10% 1 2 the top quartile for performance assessment concluded that there Fund OCF Peer Group OCF over the same periods for both the A are no other unit classes that serve and B share unit classes. broadly the same purpose and thus > Click for more fund information.

1 OCF for A Income class of fund 2 Fund is not assigned to IA sector; median OCF for broad group sector recommended by Fitz Partners

Value Assessment | As of June 2020 | 65 BlackRock Institutional Equity Funds - Emerging Markets BlackRock Institutional Equity Funds he fund aims to provide a return on associated with the fund, together investment over five or more with the quality of services provided consecutive years by investing in and benefits generated from our companies incorporated in emerging economies of scale, and concluded market countries. that it is appropriately priced. However, we noted that it is priced Benchmark at a premium as compared to an MSCI Emerging Markets ex Korea, external peer group but in line with ex Taiwan Overall Rating similar BlackRock funds. Delivers value Morningstar / IA Categories EAA Fund Global Emerging Markets Classes of Units We have looked at charges across all Equity / -- unit classes in the fund. We have Assessment Criteria Overall Assessment taken all reasonable steps to identify ● Performance Based on our review, we determined investors who are in a higher ● Comparable Market Rates that the fund delivers value. charging class and have acted in ● Comparable Services ● AFM Costs Performance their best interests by assessing ● Economies of Scale The fund outperformed its whether there are similar classes for ● Quality of Service benchmark over the three- and five- which they are eligible. Our ● Classes of Units year periods and also outperformed assessment concluded that there are no other unit classes that serve its Morningstar peer group, ranking Comparable Market Rates broadly the same purpose and thus in the top quartile for performance 1.13% 1.05% over the same periods. we have not made any changes to Fund OCF1 Peer Group OCF2 investors’ holdings. Costs, Charges & Service Quality We reviewed the AFM costs > Click for more fund information.

BlackRock Institutional Equity Funds – UK Select Equity BlackRock Institutional Equity Funds

The fund aims to outperform its Costs, Charges & Service Quality benchmark by 2% per annum, gross We reviewed the AFM costs of fees over the five consecutive associated with the fund, together years, by making investments in with the quality of services provided companies incorporated and listed in and benefits generated from our the UK. economies of scale, and concluded Overall Rating that it is appropriately priced. Delivers value Benchmark FTSE All-Share Index plus 2% The fund does not charge a (gross of fees) management fee within the fund; its fees are typically negotiated directly Assessment Criteria Morningstar / IA Categories with institutional investors and ● Performance EAA Fund UK Large-Cap Equity / -- ● billed outside of the fund. However, Comparable Market Rates ● Comparable Services Overall Assessment the fund’s OCF, which excludes ● AFM Costs Based on our review, we determined management fees, is in line with ● Economies of Scale that the fund delivers value. similar BlackRock accounts and an ● Quality of Service Performance external peer group. ● Classes of Units The fund outperformed its Classes of Units Comparable Market Rates benchmark over the three-and five- The fund has a single unit class. year periods and also outperformed There is no cheaper class to convert 0.02% 0.06% Fund OCF3 Peer Group OCF2 its Morningstar peer group, ranking investors to that serves broadly the in the top quartile for performance same purpose. over the same periods. > Click for more fund information.

1 OCF for A Income class of fund 2 Fund is not assigned to IA sector; median OCF for broad group sector recommended by Fitz Partners 3 OCF for A Accumulation class of fund

Value Assessment | As of June 2020 | 66 BlackRock Institutional Equity Funds – UK Smaller Companies BlackRock Institutional Equity Funds

The fund aims to provide a return on Costs, Charges & Service Quality investment over five or more We reviewed the AFM costs consecutive years by investing in a associated with the fund, together broad range of smaller companies with the quality of services provided incorporated and listed in the UK or and benefits generated from our Ireland. economies of scale, and concluded Overall Rating that it is appropriately priced. Delivers value Benchmark However, we noted that it is priced Numis Smaller Companies plus AIM at a premium as compared to an ex-Investment Trusts Index external peer group but in line with Assessment Criteria Morningstar / IA Categories similar BlackRock funds. ● Performance EAA Fund UK Small-Cap Equity / -- ● Comparable Market Rates Classes of Units ● Comparable Services Overall Assessment The fund has a single unit class. ● AFM Costs Based on our review, we determined There is no cheaper class to convert ● Economies of Scale that the fund delivers value. investors to that serves broadly the ● Quality of Service Performance same purpose. ● Classes of Units The fund outperformed its benchmark over the three- and five- Comparable Market Rates year periods, and also outperformed 1.07% 0.91% 1 2 its Morningstar peer group, ranking Fund OCF Peer Group OCF above median for performance over the same periods. > Click for more fund information.

BlackRock Institutional UK Focus Fund BlackRock Non-UCITS Retail Funds (2)

The fund aims to provide a return on and benefits generated from our assessment concluded that there investment generated through an economies of scale, and concluded are no other unit classes that serve increase in the value of the assets that it is appropriately priced. broadly the same purpose and thus held by the fund and/or income Additionally, we confirmed that it is we have not made any changes to received from those assets over five priced at a reasonable level when investors’ holdings. or more consecutive years. compared to both an external peer group and similar BlackRock funds. Benchmark FTSE All-Share Index The fund does not charge a management fee within the fund; its Morningstar / IA Categories fees are typically negotiated directly Overall Rating EAA Fund UK Large-Cap Equity / -- with institutional investors and Delivers value Overall Assessment billed outside of the fund. However, Based on our review, we determined the fund’s OCF, which excludes that the fund delivers value. management fees, is in line with Assessment Criteria similar BlackRock accounts and an Performance ● Performance The fund outperformed its external peer group. ● Comparable Market Rates benchmark over the three- and five- Classes of Units ● Comparable Services year periods and also outperformed We have looked at charges across all ● AFM Costs ● its Morningstar peer group, ranking unit classes in the fund. We have Economies of Scale ● Quality of Service in the top quartile over the same taken all reasonable steps to identify ● Classes of Units periods. investors who are in a higher Costs, Charges & Service Quality charging class and have acted in Comparable Market Rates We reviewed the AFM costs their best interests by assessing 0.03% 0.06% associated with the fund, together whether there are similar classes for Fund OCF3 Peer Group OCF2 with the quality of services provided which they are eligible. Our

1 OCF for A Income class of fund 2 Fund is not assigned to IA sector; median OCF for broad group sector recommended by Fitz Partners 3 OCF for A Accumulation class of fund

Value Assessment | As of June 2020 | 67 BlackRock Managed Volatility Fund BlackRock Non-UCITS Retail Funds

The fund aims to manage the with its investment aim of a return volatility of its portfolio of on investment alongside targeted investments at or around 5% and volatility. provide a return on investment Performance generated through an increase in the The fund has delivered a return that value of the assets held by the fund is positive and in line with volatility and/or income received from those expectations. assets. The fund may not achieve its 5% volatility target, especially during Costs, Charges & Service Quality Overall Rating We reviewed the AFM costs periods of unusually high or low Delivers value volatility in the markets for equity associated with the fund, together securities and/or fixed income with the quality of services provided securities and benefits generated from our economies of scale, and concluded Assessment Criteria Benchmark that it is appropriately priced. ● Performance The fund does not use a target Additionally, we confirmed that the ● Comparable Market Rates benchmark, a constraining fund is priced at a reasonable level ● Comparable Services benchmark or a comparator ● when compared to similar BlackRock AFM Costs benchmark. ● funds and an external peer group. Economies of Scale ● Quality of Service Morningstar / IA Categories Classes of Units ● Classes of Units EAA Fund GBP Flexible Allocation / The fund has a single unit class. -- There is no cheaper class to convert Comparable Market Rates Overall Assessment investors to that serves broadly the 0.23% 0.63% 1 2 Based on our review, we determined same purpose. Fund OCF Peer Group OCF that the fund delivers value in line

BlackRock Managed Volatility Fund I BlackRock Non-UCITS Retail Funds

The fund aims to manage the Performance volatility of its portfolio of The fund has delivered a positive investments at or around 6% and return and in line with volatility provide a return on investment expectations. generated through an increase in the Costs, Charges & Service Quality value of the assets held by the fund We reviewed the AFM costs and/or income received from those associated with the fund, together Overall Rating assets. with the quality of services provided Delivers value Benchmark and benefits generated from our The fund does not use a target economies of scale, and concluded benchmark, a constraining that it is appropriately priced. Assessment Criteria benchmark or a comparator Additionally, we confirmed that it is ● Performance benchmark. priced at a reasonable level when ● Comparable Market Rates compared to both an external peer Morningstar / IA Categories ● Comparable Services group determined by the IA and to ● EAA Fund GBP Flexible Allocation / AFM Costs similar BlackRock funds. ● Economies of Scale Specialist ● Quality of Service Classes of Units Overall Assessment ● Classes of Units The fund has a single unit class. Based on our review, we determined There is no cheaper class to convert that the fund delivers value in line Comparable Market Rates investors to that serves broadly the with its investment aim of a return 0.23% 0.63% same purpose. 1 3 on investment alongside targeted Fund OCF Peer Group OCF volatility.

1 OCF for C Accumulation class of fund 2 Fund is not assigned to IA sector; median OCF for broad group sector recommended by Fitz Partners 3 IA sector median OCF

Value Assessment | As of June 2020 | 68 BlackRock Managed Volatility Fund II BlackRock Non-UCITS Retail Funds

The fund aims to manage the market volatility over many years, volatility of its portfolio of the fund has delivered below target investments at or around 8% and volatility since inception. By design, provide a return on investment the fund focuses on managing generated through an increase in the against the upper bound of volatility value of the assets held by the fund and can de-risk in periods of and/or income received from those volatility spikes. assets. Costs, Charges & Service Quality Overall Rating We reviewed the AFM costs Benchmark Delivers value The fund does not use a target associated with the fund, together benchmark, a constraining with the quality of services provided benchmark or a comparator and benefits generated from our benchmark. economies of scale, and concluded Assessment Criteria that it is appropriately priced. ● Performance Morningstar / IA Categories Additionally, we confirmed that it is ● Comparable Market Rates EAA Fund GBP Flexible Allocation / priced at a reasonable level when ● Comparable Services Specialist ● compared to both an external peer AFM Costs ● Economies of Scale Overall Assessment group determined by the IA and to ● Quality of Service Based on our review, we determined similar BlackRock funds. ● Classes of Units that the fund delivers value in seeking to achieve its targeted Classes of Units The fund has a single unit class. Comparable Market Rates volatility. There is no cheaper class to convert 0.23% 0.63% 1 2 Performance investors to that serves broadly the Fund OCF Peer Group OCF Due to the downward trend in same purpose.

BlackRock Managed Volatility Fund III BlackRock Non-UCITS Retail Funds

The fund aims to manage the market volatility over many years, volatility of its portfolio of the fund has delivered below target investments at or around 10% and volatility since inception. By design, provide a return on investment the fund focuses on managing generated through an increase in the against the upper bound of volatility value of the assets held by the fund and can de-risk in periods of and/or income received from those volatility spikes. assets. Costs, Charges & Service Quality Overall Rating Benchmark We reviewed the AFM costs Delivers value The fund does not use a target associated with the fund, together benchmark, a constraining with the quality of services provided benchmark or a comparator and benefits generated from our benchmark. economies of scale, and concluded Assessment Criteria that it is appropriately priced. ● Performance Morningstar / IA Categories Additionally, we confirmed that it is ● Comparable Market Rates EAA Fund GBP Flexible Allocation / priced at a reasonable level when ● Comparable Services Specialist compared to both an external peer ● AFM Costs ● Overall Assessment group determined by the IA and to Economies of Scale ● Quality of Service Based on our review, we determined similar BlackRock funds. ● that the fund delivers value in Classes of Units seeking to achieve its targeted Classes of Units The fund has a single unit class. Comparable Market Rates volatility. There is no cheaper class to convert 0.25% 0.63% 1 2 Performance investors to that serves broadly the Fund OCF Peer Group OCF Due to the downward trend in same purpose.

1 OCF for C Accumulation class of fund 2 IA sector median OCF

Value Assessment | As of June 2020 | 69 BlackRock Managed Volatility Fund IV BlackRock Non-UCITS Retail Funds

The fund aims to manage the market volatility over many years, volatility of its portfolio of the fund has delivered below target investments at or around 15% and volatility since inception. By design, provide a return on investment the fund focuses on managing generated through an increase in the against the upper bound of volatility value of the assets held by the fund and can de-risk in periods of and/or income received from those volatility spikes. assets. Costs, Charges & Service Quality Overall Rating Benchmark We reviewed the AFM costs Delivers value The fund does not use a target associated with the fund, together benchmark, a constraining with the quality of services provided benchmark or a comparator and benefits generated from our benchmark. economies of scale, and concluded Assessment Criteria that it is appropriately priced. ● Performance Morningstar / IA Categories Additionally, we confirmed that it is ● Comparable Market Rates EAA Fund GBP Flexible Allocation / priced at a reasonable level when ● Comparable Services -- compared to both an external peer ● AFM Costs Overall Assessment group and to similar BlackRock ● Economies of Scale ● Based on our review, we determined funds. Quality of Service that the fund delivers value in ● Classes of Units seeking to achieve its targeted Classes of Units The fund has a single unit class. Comparable Market Rates volatility. There is no cheaper class to convert 0.29% 0.63% Performance investors to that serves broadly the Fund OCF1 Peer Group OCF2 Due to the downward trend in same purpose.

1 OCF for C Accumulation class of fund 2 Fund is not assigned to IA sector; median OCF for broad group sector recommended by Fitz Partners

Value Assessment | As of June 2020 | 70 BlackRock Market Advantage Fund Retail Authorised Unit Trusts

The fund aims to provide a return on during the COVID-19 crisis, taken all reasonable steps to identify investment generated through negatively impacting long-term investors who are in a higher capital growth and/or income performance, which had been charging class and have acted in received over five consecutive years, strong through to the end of 2019. their best interests by assessing which exceeds the 3-month GBP Its performance remains positive whether there are similar classes for LIBOR by 3.5% (gross of fees). over the assessment period, but which they are eligible. Our below the stated target return. assessment concluded that there Benchmark Additionally, our risk analysis are no other unit classes that serve 3 month GBP LIBOR plus 3.5% indicates that performance has broadly the same purpose and thus (gross of fees) been within the range of reasonable we have not made any changes to Morningstar / IA Categories expectations, given the fund’s risk investors’ holdings. EAA Fund GBP Flexible Allocation / profile, investment approach and Specialist market moves. Further performance Overall Assessment monitoring have been initiated to Based on our review, we determined ensure that actions are taken if it Overall Rating that the fund delivers value. To continues to underperform its Delivers value plus action ensure this continues, we have taken stated performance target. action in the form of enhanced Costs, Charges & Service Quality monitoring of the fund’s We reviewed the AFM costs Assessment Criteria performance, which includes a associated with the fund, together ● Performance review of the investment process. with the quality of services provided ● Comparable Market Rates ● Performance and benefits generated from Comparable Services ● Our assessment concluded that, economies of scale, and concluded AFM Costs ● Economies of Scale while the fund has delivered a that the fund is appropriately priced. ● Quality of Service positive return over the three- and Our assessment also confirmed that ● Classes of Units five-year periods and in line with it is priced at a reasonable level when compared to an external peer peers, it has failed to deliver a return Comparable Market Rates group determined by the IA. of its stated target in excess of 3.5% 0.43% 0.73% over GBP LIBOR. Classes of Units Fund OCF1 Peer Group OCF2 The fund’s performance was We have looked at charges across all challenged by market turbulence unit classes in the fund. We have > Click for more fund information.

1 OCF for D Accumulation class of fund 2 IA sector median OCF

Value Assessment | As of June 2020 | 71 BlackRock Natural Resources Growth & Income Fund Retail Authorised Unit Trusts

The fund aims to provide a return on benchmark, which has a sizeable giving notice of conversion. Eligible investment generated through an exposure to the Paper & Packaging investors in the A unit class were increase in the value of the assets sector. Over the same periods, the moved to the D unit class and are held by the fund and/or income fund performed around the median being charged lower fees as a result. received from those assets (gross of of its Morningstar peer group, which fees) with an above-average income contains a diverse set of peers. from its equity investments Costs, Charges & Service Quality compared to the income produced We reviewed the AFM costs by the natural resources sector, as Overall Rating associated with the fund, together represented by the benchmark. Delivers value with the quality of services provided Benchmark and benefits generated from our S&P Global Natural Resources Index economies of scale, and concluded that it is appropriately priced. Assessment Criteria Morningstar / IA Categories Additionally, we confirmed that it is ● Performance EAA Fund Sector Equity Natural priced at a reasonable level when ● Comparable Market Rates Resources / Specialist compared to both an external peer ● Comparable Services ● Overall Assessment group determined by the IA and to AFM Costs ● Economies of Scale Based on our review, we determined similar BlackRock funds. ● that the fund delivers value. Quality of Service Classes of Units ● Classes of Units Performance We have looked at charges across While the fund underperformed its unit classes in the fund. We have Comparable Market Rates benchmark over the three- and five- taken reasonable steps to identify 0.96% 1.06% 1 2 year periods, this was due to its investors eligible for a lower priced Fund OCF Peer Group OCF diversified exposure to the natural unit class and, where identified, resources sector compared to the have acted in their best interests by > Click for more fund information.

BlackRock Overseas Equity Fund BlackRock Non-UCITS Retail Funds (2)

The fund aims to provide a return on reasonable margin over the one- investment, generated through an year period. Given the fund’s increase in the value of the assets investment approach, we applied held by the fund and/or income the index methodology as opposed received from those assets, by to active. investing in units or shares of Costs, Charges & Service Quality collective investment schemes. The We reviewed the AFM costs fund is actively managed, but the Overall Rating associated with the fund, together other investment funds in which it Delivers value with the quality of services provided invests are passively managed index and benefits generated from our funds. economies of scale, and concluded Benchmark that the fund is appropriately priced. Assessment Criteria FTSE World ex-UK Index Additionally, we confirmed that it is ● Performance priced at a reasonable level when ● Comparable Market Rates Morningstar / IA Categories compared to an external peer group ● Comparable Services EAA Fund Global Large-Cap Blend determined by the IA. The fund does ● AFM Costs Equity / Global ● not have any comparable BlackRock Economies of Scale ● Quality of Service Overall Assessment funds, segregated mandates or unit ● Classes of Units Based on our review, we determined classes to evaluate fees against. that the fund delivers value. Classes of Units Comparable Market Rates Performance The fund has a single unit class. 0.22% 0.22% 3 2 Our assessment concluded that the There is no cheaper class to convert Fund OCF Peer Group OCF fund is delivering on its objective of investors to that serves broadly the tracking its benchmark within a same purpose. > Click for more fund information.

1 OCF for D Accumulation class of fund 2 IA sector median OCF 3 OCF for I Accumulation class of fund

Value Assessment | As of June 2020 | 72 BlackRock Pension Growth Fund BlackRock Authorised Contractual Scheme (2)

The fund aims to provide a return on that the fund is appropriately priced. are no other unit classes that serve investment with an asset allocation The fund does not have any broadly the same purpose and thus (i.e. mix of assets) that changes over comparable BlackRock funds, we have not made any changes to time. segregated mandates or unit investors’ holdings. classes to evaluate fees against. Benchmark Lipper ABI Mixed Investment The fund does not charge a 40-85% Index management fee within the fund; its fees are typically negotiated directly Overall Rating Morningstar / IA Categories with institutional investors and Delivers value -- / -- billed outside of the fund. However, Overall Assessment the fund’s OCF, which excludes Based on our review, we determined management fees, is in line with Assessment Criteria that the fund delivers value. similar BlackRock accounts and an ● Performance Performance external peer group. ● Comparable Market Rates ● Comparable Services Our assessment concluded that the Classes of Units ● AFM Costs fund is delivering on its objective of We have looked at charges across all ● Economies of Scale outperforming its benchmark since unit classes in the fund. We have ● Quality of Service its inception in April 2018. taken all reasonable steps to identify ● Classes of Units Costs, Charges & Service Quality investors who are in a higher We reviewed the AFM costs charging class and have acted in Comparable Market Rates associated with the fund, together their best interests by assessing 0.02% 0.06% 1 2 with the quality of services provided whether there are similar classes for Fund OCF Peer Group OCF and benefits generated from our which they are eligible. Our economies of scale, and concluded assessment concluded that there > Click for more fund information.

BlackRock Sterling Short Duration Credit Fund BlackRock Investment Funds

The fund aims to provide a return on economies of scale, and concluded investment over a period of between that it is appropriately priced. one and three consecutive years of BlackRock does not have any 1.5% per annum (gross of fees) over comparable funds in its product the return of LIBOR. portfolio, but our assessment confirmed that it is priced at a Benchmark reasonable level when compared to LIBOR + 1.5% Overall Rating an external peer group. Too new to rate Morningstar / IA Categories EAA Fund GBP Corporate Bond / -- Classes of Units We have looked at charges across all Overall Assessment unit classes in the fund. We have Assessment Criteria We determined that the fund is too taken all reasonable steps to identify ● Performance new to rate, given it has less than 12 investors who are in a higher ● Comparable Market Rates months of performance. charging class and have acted in ● Comparable Services ● AFM Costs Performance their best interests by assessing ● Economies of Scale We will continue to evaluate the whether there are similar classes for ● Quality of Service fund as part of our usual processes which they are eligible. Our ● Classes of Units as it develops a track record. assessment concluded that there are no other unit classes that serve Comparable Market Rates Costs, Charges & Service Quality broadly the same purpose and thus However, we reviewed the AFM costs 0.23% 0.60% we have not made any changes to Fund OCF3 Peer Group OCF2 associated with the fund, together investors’ holdings. with the quality of services provided and benefits generated from our > Click for more fund information.

1 OCF for X1 Accumulation class of fund 2 Fund is not assigned to IA sector; median OCF for broad group sector recommended by Fitz Partners 3 OCF for D Accumulation class of fund

Value Assessment | As of June 2020 | 73 BlackRock Sterling Strategic Bond Fund BlackRock Investment Funds

The aim of the fund is to provide a performing above median relative to have acted in their best interests by return on investment generated its Morningstar category over the giving notice of conversion. Eligible through an increase in the value of three-year period. The fund does not investors in the A unit class were the assets held by the fund and/or yet have a five-year track record. moved to the D unit class and are income received from those assets. being charged lower fees as a result. Costs, Charges & Service Quality Benchmark We reviewed the AFM costs The fund is actively managed, so the associated with the fund, together Overall Rating investment adviser has the with the quality of services provided Delivers value discretion to select the fund’s and benefits generated from our investments and is not constrained economies of scale, and concluded by any benchmark in this process. that it is appropriately priced. The IA Sterling Strategic Bond BlackRock does not have any Assessment Criteria Sector Average should be used as a comparable funds in its product ● Performance performance comparator. portfolio, but our assessment ● Comparable Market Rates ● confirmed that it is priced at a Comparable Services Morningstar / IA Categories ● AFM Costs reasonable level when compared to EAA Fund GBP Flexible Bond / £ ● Economies of Scale an external peer group determined Strategic Bond ● Quality of Service by the IA. ● Classes of Units Overall Assessment Based on our review, we determined Classes of Units We have looked at charges across Comparable Market Rates that the fund delivers value. unit classes in the fund. We have 0.61% 0.73% Fund OCF1 Peer Group OCF2 Performance taken reasonable steps to identify The fund outperformed its investors eligible for a lower priced benchmark (IA Sector) while unit class and, where identified, > Click for more fund information.

BlackRock Strategic Growth Fund BlackRock Investment Funds

The fund aims to provide, over any record, but has delivered a positive assessment concluded that there period of seven consecutive years, a outcome for investors from are no other unit classes that serve return on investment of 4.5% per inception to date. broadly the same purpose and thus year (gross of fees) over the Bank of we have not made any changes to Costs, Charges & Service Quality England’s Base Interest Rate. In investors’ holdings. We reviewed the AFM costs addition, the fund aims to manage its associated with the fund, together portfolio of investments with a view with the quality of services provided to having a volatility of return that is and benefits generated from our lower than the volatility of the Overall Rating economies of scale, and concluded monthly returns of the MSCI All Delivers value that it is appropriately priced. Country World Index (GBP) over any Additionally, we confirmed that it is period of seven consecutive years. priced at a reasonable level when Benchmark compared to both an external peer Assessment Criteria ● Bank of England Base Interest Rate group determined by the IA and to Performance ● Comparable Market Rates + 4.5% similar BlackRock funds. ● Comparable Services Morningstar / IA Categories Classes of Units ● AFM Costs EAA Fund GBP Flexible Allocation / We have looked at charges across all ● Economies of Scale Specialist unit classes in the fund. We have ● Quality of Service taken all reasonable steps to identify ● Classes of Units Overall Assessment investors who are in a higher Based on our review, we determined Comparable Market Rates charging class and have acted in that the fund delivers value. their best interests by assessing 0.30% 1.06% Fund OCF1 Peer Group OCF2 Performance whether there are similar classes for Launched in September 2018, the which they are eligible. Our fund has a relatively short track > Click for more fund information.

1 OCF for D Accumulation class of fund 2 IA sector median OCF

Value Assessment | As of June 2020 | 74 BlackRock Systematic Continental European Fund Retail Authorised Unit Trusts

The fund aims to provide a return on Costs, Charges & Service Quality investment generated through an We reviewed the AFM costs increase in the value of the assets associated with the fund, together held by the fund (gross of fees) over with the quality of services provided five or more consecutive years by and benefits generated from our investing in shares of companies economies of scale, and concluded incorporated or listed in European that the fund is appropriately priced. Overall Rating developed market countries, Additionally, we confirmed that it is Delivers value excluding the UK. priced at a reasonable level when compared to an external peer group Benchmark determined by the IA. However, the MSCI Europe ex UK Index fund was priced high relative to a Assessment Criteria Morningstar / IA Categories similar BlackRock fund. ● Performance EAA Fund Europe ex-UK Equity / ● Comparable Market Rates Europe Excluding UK Classes of Units ● Comparable Services We have looked at charges across ● AFM Costs Overall Assessment unit classes in the fund. We have ● Economies of Scale Based on our review, we determined taken reasonable steps to identify ● Quality of Service that the fund delivers value. investors eligible for a lower priced ● Classes of Units Performance unit class and, where identified, Comparable Market Rates Over the five-year period the fund have acted in their best interests by giving notice of conversion. Eligible 0.75% 0.93% performed relatively in line with the Fund OCF1 Peer Group OCF2 median of its Morningstar peer investors in the A unit class were group. moved to the D unit class and are being charged lower fees as a result. > Click for more fund information.

BlackRock Systematic Global Long/Short Equity Fund BlackRock Investment Funds

The fund aims to provide a positive that the fund is appropriately priced. absolute return on investment over a The fund is priced significantly 12-month period, regardless of above the median of its peer group market conditions. as determined by the IA. However, our assessment noted that there are Benchmark few directly comparable funds ICE BofAML Sterling LIBOR within the broad peer group, 3-month Constant Maturity Index including as it relates to certain Overall Rating Morningstar / IA Categories funds utilising performance fees. In Delivers value EAA Fund Alt - Long/Short Equity - addition, we confirmed that it is Global / Targeted Absolute Return priced at a reasonable level when compared to similar BlackRock Overall Assessment Assessment Criteria funds. Based on our review, we determined ● Performance that the fund delivers value. Classes of Units ● Comparable Market Rates ● Performance We have looked at charges across Comparable Services ● AFM Costs The fund generated a positive net unit classes in the fund. We have taken reasonable steps to identify ● Economies of Scale active return over a three-year ● investors eligible for a lower priced Quality of Service period. ● Classes of Units unit class and, where identified, Costs, Charges & Service Quality have acted in their best interests by Comparable Market Rates We reviewed the AFM costs giving notice of conversion. Eligible associated with the fund, together 1.36% 0.93% investors in the A unit class were Fund OCF1 Peer Group OCF2 with the quality of services provided moved to the D unit class and are and benefits generated from our being charged lower fees as a result. economies of scale, and concluded > Click for more fund information.

1 OCF for D Accumulation class of fund 2 IA sector median OCF

Value Assessment | As of June 2020 | 75 BlackRock Systematic Multi Allocation Credit Fund BlackRock Investment Funds

The fund aims to deliver, over seven as part of our standard processes as are no other unit classes that serve to 10 consecutive years, a return on it builds a track record. broadly the same purpose and thus investment of 0.3% per annum we have not made any changes to Costs, Charges & Service Quality (gross of fees) over its benchmark. investors’ holdings. We reviewed the AFM costs Benchmark associated with the fund, together Each of these indices make up one- with the quality of services provided third of the composite benchmark: and benefits generated from our Overall Rating Bloomberg Barclays Global economies of scale, and concluded Too new to rate Aggregate Corporate GBP Hedged that it is appropriately priced. Index, BBG Barclays Global High Additionally, we confirmed that it is Yield Index Excl CMBS & EMG 2% priced at a reasonable level when Capped GBP Hedged Index and J.P. compared to both an external peer Assessment Criteria Morgan EMBI ESG Global group and to similar BlackRock ● Performance Diversified GBP Hedged Index funds. ● Comparable Market Rates ● Comparable Services Morningstar / IA Categories Classes of Units ● AFM Costs EAA Fund Global Flexible Bond - We have looked at charges across all ● Economies of Scale GBP Hedged / -- unit classes in the fund. We have ● Quality of Service taken all reasonable steps to identify ● Classes of Units Overall Assessment investors who are in a higher We determined that the fund is too charging class and have acted in Comparable Market Rates new to rate, given that it has less their best interests by assessing 0.27% 0.73% than 12 months of performance. Fund OCF1 Peer Group OCF2 whether there are similar classes for Performance which they are eligible. Our We will continue to monitor the fund assessment concluded that there > Click for more fund information.

BlackRock UK Absolute Alpha Fund Absolute Funds

The fund aims to provide a positive associated with the fund, together absolute return on investment (i.e. an with the quality of services provided increase in the overall value of the and benefits generated from our fund, gross of fees) over any economies of scale, and concluded 12-month period regardless of that the fund is appropriately priced. market conditions. Additionally, we confirmed that it is priced at a reasonable level when Benchmark Overall Rating compared to an external peer group LIBOR 3 Month (GBP) Delivers value determined by the IA. Morningstar / IA Categories EAA Fund Alt - Long/Short Equity - Classes of Units We have looked at charges across UK / Targeted Absolute Return Assessment Criteria unit classes in the fund. We have ● Performance Overall Assessment taken reasonable steps to identify ● Comparable Market Rates Based on our review, we determined investors eligible for a lower priced ● Comparable Services that the fund delivers value. unit class and, where identified, ● AFM Costs Performance have acted in their best interests by ● Economies of Scale Our assessment concluded that the giving notice of conversion. Eligible ● Quality of Service fund is delivering on its objective of investors in the A unit class were ● Classes of Units generally delivering positive moved to the D unit class and are Comparable Market Rates absolute return over the assessed being charged lower fees as a result. three- and five-year periods. 0.93% 0.93% Fund OCF1 Peer Group OCF3 Costs, Charges & Service Quality We reviewed the AFM costs > Click for more fund information.

1 OCF for D Accumulation class of fund 2 Fund is not assigned to IA sector; median OCF for broad group sector recommended by Fitz Partners 3 IA sector median OCF

Value Assessment | As of June 2020 | 76 BlackRock UK Equity Fund Institutional Authorised Unit Trusts

The fund aims to deliver a return on associated with the fund, together investment generated through an with the quality of services provided increase in the value of the assets and benefits generated from our held by the fund and/or income economies of scale, and concluded received from those assets. that the fund is appropriately priced. Additionally, we confirmed that it is Benchmark priced at a reasonable level when FTSE All-Share TR Index Overall Rating compared to both an external peer Delivers value Morningstar / IA Categories group determined by the IA and to EAA Fund UK Large-Cap Equity / similar BlackRock funds. UK All Companies Classes of Units Assessment Criteria Overall Assessment We have looked at charges across all ● Performance Based on our review, we determined unit classes in the fund. We have ● Comparable Market Rates that the fund delivers value. taken all reasonable steps to identify ● Comparable Services Performance investors who are in a higher ● AFM Costs The fund outperformed its charging class and have acted in ● Economies of Scale benchmark over the three- and five- their best interests by assessing ● Quality of Service ● year periods and also outperformed whether there are similar classes for Classes of Units its Morningstar peer group, ranking which they are eligible. Our Comparable Market Rates in the top quartile over the same assessment concluded that there are no other unit classes that serve 0.93% 0.91% periods. Fund OCF1 Peer Group OCF2 broadly the same purpose and thus Costs, Charges & Service Quality we have not made any changes to We reviewed the AFM costs investors’ holdings. > Click for more fund information.

BlackRock UK Fund Retail Authorised Unit Trusts

The fund aims to provide a return on Costs, Charges & Service Quality investment generated through an We reviewed the AFM costs increase in the value of the assets associated with the fund, together held by the fund (gross of fees) over with the quality of services provided five or more consecutive years by and benefits generated from our investing in the shares of larger economies of scale, and concluded companies incorporated or listed in that the fund is appropriately priced. the UK. However, we noted that it is priced slightly high as compared to an Overall Rating Benchmark external peer group determined by Delivers value FTSE All Share Index the IA, but in line with similar Morningstar / IA Categories BlackRock funds. EAA Fund UK Large-Cap Equity / Assessment Criteria UK All Companies Classes of Units We have looked at charges across ● Performance ● Overall Assessment unit classes in the fund. We have Comparable Market Rates ● Comparable Services Based on our review, we determined taken reasonable steps to identify ● AFM Costs that the fund delivers value. investors eligible for a lower priced ● Economies of Scale Performance unit class and, where identified, ● Quality of Service Our assessment concluded that the have acted in their best interests by ● Classes of Units fund outperformed its benchmark giving notice of conversion. Eligible over the three- and five-year periods investors in the A unit class were Comparable Market Rates and also outperformed its moved to the D unit class and are 0.92% 0.91% 1 2 Morningstar peer group, ranking in being charged lower fees as a result. Fund OCF Peer Group OCF the top quartile for performance over the same periods. > Click for more fund information.

1 OCF for D Accumulation class of fund 2 IA sector median OCF

Value Assessment | As of June 2020 | 77 BlackRock UK Income Fund Retail Authorised Unit Trusts

The fund aims to provide a return on Costs, Charges & Service Quality moved to the D unit class and are investment generated through an We reviewed the AFM costs being charged lower fees as a result. income received from fund assets associated with the fund, together (gross of fees) with an above- with the quality of services provided average and growing income and benefits generated from our compared to the income produced economies of scale, and concluded by UK equity markets (as defined by that the fund is appropriately priced. the benchmark) without sacrificing Additionally, we confirmed that it is the benefits of capital growth over priced at a reasonable level when Overall Rating five or more consecutive years. compared to both an external peer Delivers value group determined by the IA. We have Benchmark not identified similar BlackRock FTSE All Share Index funds or segregated accounts to Morningstar / IA Categories compare the fund to, but fees across Assessment Criteria EAA Fund UK Equity Income / UK the different unit classes were in line ● Performance Equity Income with our standards. ● Comparable Market Rates ● Comparable Services Overall Assessment Classes of Units ● AFM Costs Based on our review, we determined We have looked at charges across ● Economies of Scale that the fund delivers value. unit classes in the fund. We have ● Quality of Service Performance taken reasonable steps to identify ● Classes of Units The fund generally outperformed its investors eligible for a lower priced benchmark over the three- and five- unit class and, where identified, Comparable Market Rates year periods and outperformed its have acted in their best interests by 0.88% 0.89% Fund OCF1 Peer Group OCF2 Morningstar peer group, ranking in giving notice of conversion. Eligible the top quartile for performance investors in the A unit class were over the same period. > Click for more fund information.

BlackRock UK Managed Volatility Fund I BlackRock Non-UCITS Retail Funds

The fund aims to manage the return in line with volatility volatility of its portfolio of expectations. investments at or around 5% and Costs, Charges & Service Quality provide a return on investment We reviewed the AFM costs generated through an increase in the associated with the fund, together value of the assets held by the fund with the quality of services provided and/or income received from those and benefits generated from our assets. Overall Rating economies of scale, and concluded Delivers value Benchmark that the fund is appropriately priced. The fund does not use a target Additionally, we confirmed that it is benchmark, a constraining priced at a reasonable level when benchmark or a comparator compared to both an external peer Assessment Criteria benchmark. group determined by the IA and to ● Performance ● similar BlackRock funds. Comparable Market Rates Morningstar / IA Categories ● Comparable Services EAA Fund GBP Flexible Allocation / Classes of Units ● AFM Costs Specialist The fund has a single unit class, so ● Economies of Scale there is no cheaper class to convert ● Quality of Service Overall Assessment investors to that serves broadly the ● Classes of Units Based on our review, we determined same purpose. that the fund delivers value in line Comparable Market Rates with its aim of a targeted volatility. 0.22% 0.63% 3 2 Performance Fund OCF Peer Group OCF The fund has delivered a positive

1 OCF for D Accumulation class of fund 2 IA sector median OCF 3 OCF for C Accumulation class of fund

Value Assessment | As of June 2020 | 78 BlackRock UK Managed Volatility Fund II BlackRock Non-UCITS Retail Funds

The fund aims to manage the Performance volatility of its portfolio of The fund has delivered a positive investments at or around 7% and return in line with volatility provide a return on investment expectations. generated through an increase in the Costs, Charges & Service Quality value of the assets held by the fund Overall Rating We reviewed the AFM costs and/or income received from those Delivers value associated with the fund, together assets. with the quality of services provided Benchmark and benefits generated from our The fund does not use a target economies of scale, and concluded Assessment Criteria benchmark, a constraining that the fund is appropriately priced. ● Performance benchmark or a comparator Additionally, we confirmed that it is ● Comparable Market Rates benchmark. priced at a reasonable level when ● Comparable Services compared to both an external peer ● AFM Costs Morningstar / IA Categories ● group determined by the IA and to Economies of Scale EAA Fund GBP Flexible Allocation / ● Quality of Service similar BlackRock funds. Specialist ● Classes of Units Classes of Units Overall Assessment The fund has a single unit class, so Comparable Market Rates Based on our review, we determined there is no cheaper class to convert 0.22% 0.63% that the fund delivers value in line investors to that serves broadly the Fund OCF1 Peer Group OCF2 with its aim of a targeted volatility. same purpose.

BlackRock UK Managed Volatility Fund III BlackRock Non-UCITS Retail Funds

The fund aims to manage the Performance volatility of its portfolio of The fund has delivered a positive investments at or around 9% and return in line with volatility provide a return on investment expectations. generated through an increase in the Costs, Charges & Service Quality value of the assets held by the fund Overall Rating We reviewed the AFM costs and/or income received from those Delivers value associated with the fund, together assets. with the quality of services provided Benchmark and benefits generated from our The fund does not use a target economies of scale, and concluded Assessment Criteria benchmark, a constraining that it is appropriately priced. ● Performance benchmark or a comparator Additionally, we confirmed that it is ● Comparable Market Rates benchmark. priced at a reasonable level when ● Comparable Services ● compared to both an external peer AFM Costs Morningstar / IA Categories ● group determined by the IA and to Economies of Scale EAA Fund GBP Flexible Allocation / ● Quality of Service similar BlackRock funds. Specialist ● Classes of Units Classes of Units Overall Assessment The fund has a single unit class, so Comparable Market Rates Based on our review, we determined there is no cheaper class to convert 0.22% 0.63% that the fund delivers value in line 1 2 investors to that serves broadly the Fund OCF Peer Group OCF with its aim of a targeted volatility. same purpose.

1 OCF for C Accumulation class of fund 2 IA sector median OCF

Value Assessment | As of June 2020 | 79 BlackRock UK Smaller Companies Fund Retail Authorised Unit Trusts

The fund aims to provide a return on median of its Morningstar peer moved to the D unit class and are investment, generated through an group over the same periods. being charged lower fees as a result. increase in the value of the assets Costs, Charges & Service Quality held by the fund (gross of fees) over We reviewed the AFM costs five or more consecutive years, by associated with the fund, together investing in shares of smaller with the quality of services provided companies incorporated or listed in Overall Rating and benefits generated from our the UK. Delivers value economies of scale, and concluded Benchmark that the fund is appropriately priced. Numis Smaller Companies plus AIM Additionally, we noted that the fund ex-Investment Trusts Index is priced at a reasonable level when Assessment Criteria compared to both an external peer ● Performance Morningstar / IA Categories group determined by the IA and ● Comparable Market Rates EAA Fund UK Small-Cap Equity / ● similar BlackRock funds. Comparable Services UK Smaller Companies ● AFM Costs Classes of Units ● Economies of Scale Overall Assessment We have looked at charges across ● Quality of Service Based on our review, we determined unit classes in the fund. We have ● Classes of Units that the fund delivers value. taken reasonable steps to identify Performance investors eligible for a lower priced Comparable Market Rates Our assessment concluded that the unit class and, where identified, 0.93% 0.92% Fund OCF1 Peer Group OCF2 fund outperformed its benchmark have acted in their best interests by over the three- and five-year periods giving notice of conversion. Eligible and performed better than the investors in the A unit class were > Click for more fund information.

BlackRock UK Special Situations Fund Retail Authorised Unit Trusts

The fund aims to provide a return on fund outperformed its benchmark investors in the A unit class were investment generated through an (IA sector average) over the three- moved to the D unit class and are increase in the value of the assets and five-year periods, as well as its being charged lower fees as a result. held by the fund (gross of fees) over Morningstar peer group median five or more consecutive years by over the same periods. investing in shares of companies Costs, Charges & Service Quality incorporated or listed in the UK. We reviewed the AFM costs Overall Rating Benchmark associated with the fund, together Delivers value IA UK All Companies Sector Average with the quality of services provided (for performance evaluation). Note: and benefits generated from our FTSE All-Share TR Index is used by economies of scale, and concluded the Investment Manager when that the fund is appropriately priced. Assessment Criteria constructing the portfolio of the However, our assessment confirmed ● Performance fund as representative of the that the fund is priced at a premium ● Comparable Market Rates investment universe. compared to an external peer group ● Comparable Services ● determined by the IA. AFM Costs Morningstar / IA Categories ● Economies of Scale EAA Fund UK Flex-Cap Equity / UK Classes of Units ● Quality of Service All Companies We have looked at charges across ● Classes of Units unit classes in the fund. We have Overall Assessment taken reasonable steps to identify Comparable Market Rates Based on our review, we determined investors eligible for a lower priced 0.93% 0.91% that the fund delivers value. 1 2 unit class and, where identified, Fund OCF Peer Group OCF Performance have acted in their best interests by Our assessment concluded that the giving notice of conversion. Eligible > Click for more fund information.

1 OCF for D Accumulation class of fund 2 IA sector median OCF

Value Assessment | As of June 2020 | 80 BlackRock US Dynamic Fund Retail Authorised Unit Trusts

The fund aims to provide a return on Flex-Cap Equity category, which Classes of Units investment over five or more includes funds that invest across We have looked at charges across consecutive years through capital the market cap spectrum. This unit classes in the fund. We have growth by investing in shares of means that, depending on a fund’s taken reasonable steps to identify companies incorporated or listed in market cap bias or investment style investors eligible for a lower priced the United States. tilts over a given period, it is likely to unit class and, where identified, underperform or outperform its have acted in their best interests by Benchmark benchmark or peers. Over the three- giving notice of conversion. Eligible Russell 1000 Index and five-year periods, the fund had investors in the A unit class were Morningstar / IA Categories an investment tilt towards the value moved to the D unit class and are EAA Fund US Flex-Cap Equity / style factor, which has being charged lower fees as a result. North America underperformed the growth style Overall Assessment factor. This tilt drove the fund’s Based on our review, we determined underperformance relative to its that the fund delivers value. To benchmark. To ensure that the fund ensure this continues, we have continues to deliver value, we have Overall Rating taken action in the form of initiated enhanced performance Delivers value plus action enhanced monitoring of the fund’s monitoring, which includes a review performance, which includes a of the investment process and the appropriateness of its benchmark. review of the investment process. Assessment Criteria ● Performance Costs, Charges & Service Quality Performance ● Our assessment concluded that, We reviewed the AFM costs Comparable Market Rates ● Comparable Services while the fund has delivered a associated with the fund, together with the quality of services provided ● AFM Costs positive return over the three- and ● and benefits generated from Economies of Scale five-year periods, it has ● Quality of Service economies of scale, and concluded underperformed its benchmark. ● Classes of Units However, the fund has outperformed that the fund is appropriately priced. its Morningstar peer group, ranking Additionally, we confirmed that the Comparable Market Rates in the top two quartiles for fund is priced below median when 0.89% 0.92% performance over the three- and compared to an external peer group Fund OCF1 Peer Group OCF2 five-year periods. determined by the IA and in line with similar BlackRock funds. The fund is in Morningstar’s US > Click for more fund information.

1 OCF for D Accumulation class of fund 2 IA sector median OCF

Value Assessment | As of June 2020 | 81 BlackRock US Opportunities Fund Retail Authorised Unit Trusts

The fund aims to provide a return on dividends. While the fund has taken reasonable steps to identify investment over five or more delivered on this investment investors eligible for a lower priced consecutive years by investing in approach, its focus on value stocks unit class and, where identified, shares of medium and smaller over the evaluation period has have acted in their best interests by companies incorporated or listed in coincided with a period during giving notice of conversion. Eligible the United States. which value has been out of favour investors in the A unit class were in the markets. Thus the fund has moved to the D unit class and are Benchmark underperformed its benchmark, being charged lower fees as a result. S&P US MidSmallCap Index which does not have a focus on Morningstar / IA Categories value. To ensure that the fund EAA Fund US Mid-Cap Equity / continues to deliver value, we have North America initiated enhanced performance Overall Assessment monitoring, which includes a review Based on our review, we determined of the investment process and the Overall Rating that the fund delivers value. To appropriateness of its benchmark. Delivers value plus action ensure this continues, we have taken Costs, Charges & Service Quality action in the form of enhanced We reviewed the AFM costs monitoring of the fund’s associated with the fund, together Assessment Criteria performance, which includes a with the quality of services provided ● Performance review of the investment process. and benefits generated from our ● Comparable Market Rates Performance economies of scale, and concluded ● Comparable Services Our assessment concluded that, that the fund is appropriately priced. ● AFM Costs ● while the fund has delivered a Additionally, we confirmed that the Economies of Scale ● Quality of Service positive return over the three- and fund is priced below the median ● Classes of Units five-year periods, it has when compared to both an external peer group determined by the IA and underperformed both its benchmark Comparable Market Rates to similar BlackRock funds. and peers. 0.89% 0.92% The fund seeks to invest in Classes of Units Fund OCF1 Peer Group OCF2 attractively priced, high-quality We have looked at charges across unit classes in the fund. We have companies that pay and grow > Click for more fund information.

1 OCF for D Accumulation class of fund 2 IA sector median OCF

Value Assessment | As of June 2020 | 82 BlackRock Volatility Strategy Fund I BlackRock Non-UCITS Retail Funds

The fund aims to manage the the fund has delivered below target whether there are similar classes for volatility of its portfolio of volatility since inception. By design, which they are eligible. Our investments at or around 9% and the fund focuses on managing assessment concluded that there provide a return on investment against the upper bound of volatility are no other unit classes that serve generated through an increase in the and can de-risk in periods of broadly the same purpose and thus value of the assets held by the fund volatility spikes. we have not made any changes to and/or income received from those investors’ holdings. Costs, Charges & Service Quality assets. We reviewed the AFM costs Benchmark associated with the fund, together The fund does not use a target with the quality of services provided Overall Rating benchmark, a constraining and benefits generated from our Delivers value benchmark or a comparator economies of scale, and concluded benchmark that the fund is appropriately priced. Additionally, we confirmed that the Morningstar / IA Categories Assessment Criteria fund is priced at a reasonable level EAA Fund GBP Flexible Allocation / ● Performance when compared to both an external ● Volatility Managed Comparable Market Rates peer group determined by the IA and ● Comparable Services Overall Assessment to similar BlackRock funds. ● AFM Costs Based on our review, we determined ● Economies of Scale that the fund delivers value in Classes of Units ● Quality of Service We have looked at charges across all seeking to achieve its targeted ● Classes of Units unit classes in the fund. We have volatility. taken all reasonable steps to identify Comparable Market Rates Performance investors who are in a higher 0.22% 0.63% Due to the downward trend in charging class and have acted in Fund OCF1 Peer Group OCF2 market volatility over many years, their best interests by assessing

1 OCF for C Accumulation class of fund 2 IA sector median OCF

Value Assessment | As of June 2020 | 83 BlackRock Volatility Strategy Fund II BlackRock Non-UCITS Retail Funds

The fund aims to manage the the fund has delivered below target whether there are similar classes for volatility of its portfolio of volatility since inception. By design, which they are eligible. Our investments at or around 11% and the fund focuses on managing assessment concluded that there provide a return on investment against the upper bound of volatility are no other unit classes that serve generated through an increase in the and can de-risk in periods of broadly the same purpose and thus value of the assets held by the fund volatility spikes. we have not made any changes to and/or income received from those investors’ holdings. Costs, Charges & Service Quality assets. We reviewed the AFM costs Benchmark associated with the fund, together

The fund does not use a target with the quality of services provided Overall Rating Delivers value benchmark, a constraining and benefits generated from our benchmark or a comparator economies of scale, and concluded benchmark that the fund is appropriately priced. Additionally, we confirmed that the Morningstar / IA Categories Assessment Criteria fund is priced at a reasonable level ● Performance EAA Fund GBP Flexible Allocation / when compared to both an external ● Comparable Market Rates Volatility Managed peer group determined by the IA and ● Comparable Services Overall Assessment to similar BlackRock funds. ● AFM Costs Based on our review, we determined ● Economies of Scale that the fund delivers value in Classes of Units ● Quality of Service We have looked at charges across all ● seeking to achieve its targeted Classes of Units unit classes in the fund. We have volatility. taken all reasonable steps to identify Comparable Market Rates Performance investors who are in a higher 0.22% 0.63% Due to the downward trend in charging class and have acted in Fund OCF1 Peer Group OCF2 market volatility over many years, their best interests by assessing

1 OCF for C Accumulation class of fund 2 IA sector median OCF

Value Assessment | As of June 2020 | 84 BlackRock Volatility Strategy Fund III BlackRock Non-UCITS Retail Funds

The fund aims to manage the the fund has delivered below target whether there are similar classes for volatility of its portfolio of volatility since inception. By design, which they are eligible. Our investments at or around 13% and the fund focuses on managing assessment concluded that there provide a return on investment against the upper bound of volatility are no other unit classes that serve generated through an increase in the and can de-risk in periods of broadly the same purpose and thus value of the assets held by the fund volatility spikes. we have not made any changes to and/or income received from those investors’ holdings. Costs, Charges & Service Quality assets. We reviewed the AFM costs Benchmark associated with the fund, together Overall Rating The fund does not use a target with the quality of services provided Delivers value benchmark, a constraining and benefits generated from our benchmark or a comparator economies of scale, and concluded benchmark that the fund is appropriately priced. Additionally, we confirmed that the Morningstar / IA Categories Assessment Criteria fund is priced at a reasonable level ● Performance EAA Fund GBP Flexible Allocation / when compared to both an external ● Comparable Market Rates Volatility Managed peer group determined by the IA and ● Comparable Services Overall Assessment to similar BlackRock funds. ● AFM Costs Based on our review, we determined ● Economies of Scale that the fund delivers value in Classes of Units ● Quality of Service We have looked at charges across all ● seeking to achieve its targeted Classes of Units unit classes in the fund. We have volatility. taken all reasonable steps to identify Comparable Market Rates Performance investors who are in a higher 0.22% 0.63% Due to the downward trend in charging class and have acted in Fund OCF1 Peer Group OCF2 market volatility over many years, their best interests by assessing

BlackRock Volatility Strategy Fund IV BlackRock Non-UCITS Retail Funds

The fund aims to manage the the fund has delivered below target whether there are similar classes for volatility of its portfolio of volatility since inception. By design, which they are eligible. Our investments at or around 15% and the fund focuses on managing assessment concluded that there provide a return on investment, against the upper bound of volatility are no other unit classes that serve generated through an increase in the and can de-risk in periods of broadly the same purpose and thus value of the assets held by the fund volatility spikes. we have not made any changes to and/or income received from those investors’ holdings. Costs, Charges & Service Quality assets. We reviewed the AFM costs Benchmark associated with the fund, together Overall Rating The fund does not use a target with the quality of services provided Delivers value benchmark, a constraining and benefits generated from our benchmark or a comparator economies of scale, and concluded benchmark that the fund is appropriately priced. Additionally, we confirmed that the Assessment Criteria Morningstar / IA Categories fund is priced at a reasonable level ● Performance EAA Fund GBP Flexible Allocation / when compared to both an external ● Comparable Market Rates Volatility Managed peer group determined by the IA and ● Comparable Services ● Overall Assessment to similar BlackRock funds. AFM Costs Based on our review, we determined ● Economies of Scale ● that the fund delivers value in Classes of Units Quality of Service We have looked at charges across all ● Classes of Units seeking to achieve its targeted unit classes in the fund. We have volatility. taken all reasonable steps to identify Comparable Market Rates Performance investors who are in a higher 0.22% 0.63% 1 2 Due to the downward trend in charging class and have acted in Fund OCF Peer Group OCF market volatility over many years, their best interests by assessing

1 OCF for C Accumulation class of fund 2 IA sector median OCF

Value Assessment | As of June 2020 | 85 iShares 100 UK Equity Index Fund (UK) BlackRock Collective Investment Funds

The fund aims to provide a return on economies of scale, and concluded investment by tracking closely the that the fund is appropriately priced. performance of its benchmark Additionally, we confirmed that the fund is priced at a reasonable level Benchmark when compared to an external peer FTSE 100 Index group determined by the IA. The Morningstar / IA Categories fund does not have any comparable Overall Rating EAA Fund UK Large-Cap Equity / BlackRock funds or segregated Delivers value UK All Companies mandates. However, we found that Overall Assessment pricing across the fund’s unit classes was also reasonable. Based on our review, we determined Assessment Criteria that the fund delivers value. Classes of Units ● Performance ● Performance We have looked at charges across Comparable Market Rates ● Comparable Services Our assessment concluded that the unit classes in the fund. We have taken reasonable steps to identify ● AFM Costs fund is delivering on its objective of ● investors eligible for a lower priced Economies of Scale tracking its benchmark within a ● Quality of Service unit class and, where identified, reasonable margin over the one- ● Classes of Units year period. have acted in their best interests by giving notice of conversion. Eligible Comparable Market Rates Costs, Charges & Service Quality investors in the A and L unit classes We reviewed the AFM costs 0.07% 0.14% were moved to the D unit class and Fund OCF1 Peer Group OCF2 associated with the fund, together are being charged lower fees as a with the quality of services provided result. and benefits generated from our > Click for more fund information. iShares 350 UK Equity Index Fund (UK) BlackRock Collective Investment Funds

The fund aims to provide a return on that the fund is appropriately priced. investment by tracking closely the Additionally, we confirmed that the performance of its benchmark. fund is priced at a reasonable level when compared to an external peer Benchmark group. The fund does not have any FTSE 350 Index comparable BlackRock funds or Morningstar / IA Categories segregated mandates. However, we Overall Rating EAA Fund UK Large-Cap Equity / -- found that pricing across the fund’s Delivers value Overall Assessment unit classes was also reasonable. Based on our review, we determined Classes of Units that the fund delivers value. We have looked at charges across Assessment Criteria Performance unit classes in the fund. We have ● Performance Our assessment concluded that the taken reasonable steps to identify ● Comparable Market Rates ● fund is delivering on its objective of investors eligible for a lower priced Comparable Services ● AFM Costs tracking its benchmark within a unit class and, where identified, have acted in their best interests by ● Economies of Scale reasonable margin over the one- ● giving notice of conversion. Eligible Quality of Service year period. ● Classes of Units investors in the A and L unit classes Costs, Charges & Service Quality were moved to the D unit class and Comparable Market Rates We reviewed the AFM costs are being charged lower fees as a associated with the fund, together 0.16% 0.14% result. 1 3 with the quality of services provided Fund OCF Peer Group OCF and benefits generated from our economies of scale, and concluded > Click for more fund information.

1 OCF for D Accumulation class of fund 2 IA sector median OCF 3 Fund is not assigned to IA sector; median OCF for broad group sector recommended by Fitz Partners

Value Assessment | As of June 2020 | 86 iShares Continental European Equity Index Fund (UK) BlackRock Collective Investment Funds

The fund aims to provide a return on economies of scale, and concluded investment by tracking closely the that the fund is appropriately priced. performance of its benchmark. Additionally, we confirmed that the fund is priced at a reasonable level Benchmark when compared to an external peer FTSE World Europe ex UK Index group determined by the IA. The Morningstar / IA Categories fund does not have any comparable Overall Rating EAA Fund Europe ex-UK Equity / BlackRock funds or segregated Delivers value Europe Excluding UK mandates. However, we found that Overall Assessment pricing across the fund’s unit classes was also reasonable. Based on our review, we determined Assessment Criteria that the fund delivers value. Classes of Units ● Performance ● Performance We have looked at charges across Comparable Market Rates ● Our assessment concluded that the unit classes in the fund. We have Comparable Services ● AFM Costs fund is delivering on its objective of taken reasonable steps to identify investors eligible for a lower priced ● Economies of Scale tracking its benchmark within a ● unit class and, where identified, Quality of Service reasonable margin over the one- ● Classes of Units year period. have acted in their best interests by giving notice of conversion. Eligible Comparable Market Rates Costs, Charges & Service Quality investors in the A and L unit classes We reviewed the AFM costs 0.06% 0.12% were moved to the D unit class and Fund OCF1 Peer Group OCF2 associated with the fund, together are being charged lower fees as a with the quality of services provided result. and benefits generated from our > Click for more fund information. iShares Corporate Bond Index Fund (UK) BlackRock Collective Investment Funds

The fund aims to provide a return on and benefits generated from our investment by tracking closely the economies of scale, and concluded performance of its benchmark. that the fund is appropriately priced. Additionally, we confirmed that the Benchmark fund is priced at a reasonable level Markit iBoxx GBP Non-Gilts Overall when compared to both an external TR Index peer group determined by the IA and Overall Rating Morningstar / IA Categories to similar BlackRock funds. Delivers value EAA Fund GBP Corporate Bond / £ Corporate Bond Classes of Units We have looked at charges across Overall Assessment unit classes in the fund. We have Assessment Criteria Based on our review, we determined taken reasonable steps to identify ● Performance that the fund delivers value. investors eligible for a lower priced ● Comparable Market Rates ● Performance unit class and, where identified, Comparable Services ● Our assessment concluded that the have acted in their best interests by AFM Costs ● Economies of Scale fund is delivering on its objective of giving notice of conversion. Eligible ● Quality of Service tracking its benchmark within a investors in the A and L unit classes ● Classes of Units reasonable margin over the one- were moved to the D unit class and are being charged lower fees as a year period. Comparable Market Rates result. Costs, Charges & Service Quality 0.12% 0.15% 1 2 We reviewed the AFM costs Fund OCF Peer Group OCF associated with the fund, together with the quality of services provided > Click for more fund information.

1 OCF for D Accumulation class of fund 2 IA sector median OCF

Value Assessment | As of June 2020 | 87 iShares Emerging Markets Equity Index Fund (UK) BlackRock Collective Investment Funds

The fund aims to provide a return on economies of scale, and concluded investment by tracking closely the that the fund is appropriately priced. performance of its benchmark. Additionally, we confirmed that the fund is priced at a reasonable level Benchmark when compared to both an external FTSE Emerging Index peer group determined by the IA and Morningstar / IA Categories to similar BlackRock funds. Overall Rating EAA Fund Global Emerging Markets Delivers value Equity / Global Emerging Markets Classes of Units We have looked at charges across Overall Assessment unit classes in the fund. We have Based on our review, we determined taken reasonable steps to identify Assessment Criteria that the fund delivers value. investors eligible for a lower priced ● Performance Performance unit class and, where identified, ● Comparable Market Rates ● Our assessment concluded that the have acted in their best interests by Comparable Services ● AFM Costs fund is delivering on its objective of giving notice of conversion. Eligible investors in the A and L unit classes ● Economies of Scale tracking its benchmark within a ● were moved to the D unit class and Quality of Service reasonable margin over the one- ● Classes of Units year period. are being charged lower fees as a result. Costs, Charges & Service Quality Comparable Market Rates We reviewed the AFM costs 0.18% 0.24% 1 2 associated with the fund, together Fund OCF Peer Group OCF with the quality of services provided and benefits generated from our > Click for more fund information. iShares Global Property Securities Equity Index Fund (UK) BlackRock Collective Investment Funds

The fund aims to provide a return on and benefits generated from our investment by tracking closely the economies of scale, and concluded performance of its benchmark. that the fund is appropriately priced. Additionally, we confirmed that the Benchmark fund is priced at a reasonable level FTSE EPRA/NAREIT Developed when compared to both an external Index peer group determined by the IA and Overall Rating Morningstar / IA Categories to similar segregated mandates Delivers value EAA Fund Property - Indirect Global managed by BlackRock. The fund / Property Other does not have any comparable BlackRock funds. Overall Assessment Assessment Criteria Based on our review, we determined Classes of Units ● Performance that the fund delivers value. We have looked at charges across ● Comparable Market Rates ● Performance unit classes in the fund. We have Comparable Services ● AFM Costs Our assessment concluded that the taken reasonable steps to identify investors eligible for a lower priced ● Economies of Scale fund is delivering on its objective of ● unit class and, where identified, Quality of Service tracking its benchmark within a ● Classes of Units reasonable margin over the one- have acted in their best interests by giving notice of conversion. Eligible year period. Comparable Market Rates investors in the A and L unit classes Costs, Charges & Service Quality 0.17% 0.17% were moved to the D unit class and Fund OCF1 Peer Group OCF2 We reviewed the AFM costs are being charged lower fees as a associated with the fund, together result. with the quality of services provided > Click for more fund information.

1 OCF for D Accumulation class of fund 2 IA sector median OCF

Value Assessment | As of June 2020 | 88 iShares Index Linked Gilt Index Fund (UK) BlackRock Collective Investment Funds

The fund aims to provide a return on and benefits generated from our investment by tracking closely the economies of scale, and concluded performance of its benchmark. that the fund is appropriately priced. Additionally, we confirmed that the Benchmark fund is priced at a reasonable level FTSE Actuaries UK Index Linked when compared to both an external Gilts Over 5 Years Index peer group determined by the IA and Overall Rating Morningstar / IA Categories to similar segregated mandates Delivers value EAA Fund GBP Inflation-Linked managed by BlackRock. The fund Bond / UK Index Linked Gilts does not have any comparable BlackRock funds. Overall Assessment Assessment Criteria Based on our review, we determined Classes of Units ● Performance that the fund delivers value. We have looked at charges across ● Comparable Market Rates ● Comparable Services Performance unit classes in the fund. We have ● AFM Costs Our assessment concluded that the taken reasonable steps to identify investors eligible for a lower-priced ● Economies of Scale fund is delivering on its objective of ● unit class and, where identified, Quality of Service tracking its benchmark within a ● Classes of Units reasonable margin over the one- have acted in their best interests by year period. giving notice of conversion. Eligible Comparable Market Rates investors in the A and L unit classes Costs, Charges & Service Quality 0.11% 0.13% were moved to the D unit class and Fund OCF1 Peer Group OCF2 We reviewed the AFM costs are being charged lower fees as a associated with the fund, together result. with the quality of services provided > Click for more fund information. iShares Japan Equity Index Fund (UK) BlackRock Collective Investment Funds

The fund aims to provide a return on economies of scale, and concluded investment by tracking closely the that the fund is appropriately priced. performance of its benchmark. Additionally, we confirmed that the fund is priced at a reasonable level Benchmark when compared to both an external FTSE Japan Index peer group determined by the IA and Morningstar / IA Categories to similar BlackRock funds. Overall Rating EAA Fund Japan Large-Cap Equity Delivers value / Japan Classes of Units We have looked at charges across Overall Assessment unit classes in the fund. We have Based on our review, we determined taken reasonable steps to identify Assessment Criteria that the fund delivers value. investors eligible for a lower priced ● Performance Performance unit class and, where identified, ● Comparable Market Rates ● Our assessment concluded that the have acted in their best interests by Comparable Services ● fund is delivering on its objective of giving notice of conversion. Eligible AFM Costs ● Economies of Scale tracking its benchmark within a investors in the A and L unit classes ● Quality of Service reasonable margin over the one- were moved to the D unit class and ● Classes of Units year period. are being charged lower fees as a result. Costs, Charges & Service Quality Comparable Market Rates We reviewed the AFM costs 0.08% 0.17% 1 2 associated with the fund, together Fund OCF Peer Group OCF with the quality of services provided and benefits generated from our > Click for more fund information.

1 OCF for D Accumulation class of fund 2 IA sector median OCF

Value Assessment | As of June 2020 | 89 iShares Mid Cap UK Equity Index Fund (UK) BlackRock Collective Investment Funds

The aim of the fund is to provide a and benefits generated from our return on investment by tracking economies of scale, and concluded closely the performance of its that the fund is appropriately priced. benchmark. Additionally, we confirmed that the fund is priced at a reasonable level Benchmark when compared to an external peer FTSE 250 Index group determined by the IA. The Overall Rating Morningstar / IA Categories fund does not have any comparable Delivers value EAA Fund UK Mid-Cap Equity / UK BlackRock funds or segregated All Companies mandates, however we found that Overall Assessment pricing across the fund’s unit Based on our review, we determined classes was reasonable, too. Assessment Criteria ● Performance that the fund delivers value. Classes of Units ● Comparable Market Rates Performance We have looked at charges across ● Comparable Services Our assessment concluded that the unit classes in the fund. We have ● AFM Costs fund is delivering on its objective of taken reasonable steps to identify ● Economies of Scale tracking its benchmark within a investors eligible for a lower priced ● Quality of Service ● reasonable margin over the one- unit class and, where identified, Classes of Units year period. have acted in their best interests by giving notice of conversion. Eligible Comparable Market Rates Costs, Charges & Service Quality investors in the A and L unit classes 0.16% 0.14% Fund OCF1 Peer Group OCF2 We reviewed the AFM costs were moved to the D unit class and associated with the fund, together are being charged lower fees as a with the quality of services provided result. > Click for more fund information. iShares North American Equity Index Fund (UK) BlackRock Collective Investment Funds

The fund aims to provide a return on economies of scale, and concluded investment by tracking closely the that the fund is appropriately priced. performance of its benchmark. Additionally, we confirmed that the fund is priced at a reasonable level Benchmark when compared to both an external FTSE World North America Index peer group determined by the IA and Morningstar / IA Categories to similar BlackRock funds. Overall Rating EAA Fund US Large-Cap Blend Delivers value Equity / North America Classes of Units We have looked at charges across Overall Assessment unit classes in the fund. We have Based on our review, we determined taken reasonable steps to identify Assessment Criteria that the fund delivers value. investors eligible for a lower priced ● Performance Performance unit class and, where identified, ● Comparable Market Rates ● Our assessment concluded that the have acted in their best interests by Comparable Services ● AFM Costs fund is delivering on its objective of giving notice of conversion. Eligible investors in the A and L unit classes ● Economies of Scale tracking its benchmark within a ● were moved to the D unit class and Quality of Service reasonable margin over the one- ● Classes of Units year period. are being charged lower fees as a result. Costs, Charges & Service Quality Comparable Market Rates We reviewed the AFM costs 0.08% 0.09% 1 2 associated with the fund, together Fund OCF Peer Group OCF with the quality of services provided and benefits generated from our > Click for more fund information.

1 OCF for D Accumulation class of fund 2 IA sector median OCF

Value Assessment | As of June 2020 | 90 iShares Over 15 Years Corporate Bond Index Fund (UK) BlackRock Collective Investment Funds

The fund aims to provide a return on economies of scale, and concluded investment by tracking closely the that the fund is appropriately priced. performance of its benchmark. Additionally, we confirmed that the fund is priced at a reasonable level Benchmark when compared to both an external Markit iBoxx GBP Non-Gilts Over 15 peer group and to similar BlackRock Years Index funds. Overall Rating Morningstar / IA Categories Delivers value EAA Fund GBP Corporate Bond / -- Classes of Units We have looked at charges across Overall Assessment unit classes in the fund. We have Based on our review, we determined taken reasonable steps to identify Assessment Criteria that the fund delivers value. investors eligible for a lower priced ● Performance ● Performance unit class and, where identified, Comparable Market Rates ● Comparable Services Our assessment concluded that the have acted in their best interests by giving notice of conversion. Eligible ● AFM Costs fund is delivering on its objective of ● investors in the A and L unit classes Economies of Scale tracking its benchmark within a ● Quality of Service were moved to the D unit class and reasonable margin over the one- ● Classes of Units year period. are being charged lower fees as a result. Comparable Market Rates Costs, Charges & Service Quality We reviewed the AFM costs 0.17% 0.15% Fund OCF1 Peer Group OCF2 associated with the fund, together with the quality of services provided and benefits generated from our > Click for more fund information. iShares Over 15 Years Gilts Index Fund (UK) BlackRock Collective Investment Funds

The fund aims to provide a return on and benefits generated from our investment by tracking closely the economies of scale, and concluded performance of its benchmark. that the charges are reasonable and the fund is appropriately priced. Benchmark Additionally, we confirmed that the FTSE Actuaries UK Conventional fund is priced at a reasonable level Gilts Over 15 Years Index when compared to both an external Overall Rating Morningstar / IA Categories peer group determined by the IA and Delivers value EAA Fund GBP Government Bond / to similar BlackRock funds. UK Gilts Classes of Units Overall Assessment We have looked at charges across all Assessment Criteria Based on our review, we determined unit classes in the fund. We have ● Performance that the fund delivers value. taken all reasonable steps to identify ● Comparable Market Rates ● Performance investors who are in a higher Comparable Services ● Our assessment concluded that the charging class and have acted in AFM Costs ● Economies of Scale fund is delivering on its objective of their best interests by assessing ● Quality of Service tracking its benchmark within a whether there are similar classes for ● Classes of Units reasonable margin over the one- which they are eligible. Our assessment concluded that there year period. Comparable Market Rates are no other unit classes that serve Costs, Charges & Service Quality 0.16% 0.15% broadly the same purpose and thus Fund OCF1 Peer Group OCF3 We reviewed the AFM costs we have not made any changes to associated with the fund, together investors’ holdings. with the quality of services provided > Click for more fund information.

1 OCF for D Accumulation class of fund 2 Fund is not assigned to IA sector; median OCF for broad group sector recommended by Fitz Partners 3 IA sector median OCF

Value Assessment | As of June 2020 | 91 iShares Overseas Corporate Bond Index Fund (UK) BlackRock Collective Investment Funds

The fund aims to provide a return on and benefits generated from our investment by tracking closely the economies of scale, and concluded performance of its benchmark. that the fund is appropriately priced. BlackRock does not have any Benchmark comparable funds in its product Bloomberg Barclays Global portfolio, but our assessment Aggregate Corporate ex GBP Index confirmed that the fund is at a Overall Rating Morningstar / IA Categories reasonable level when compared to Delivers value EAA Fund Global Corporate Bond / both comparable segregated Global Bonds mandates and to an external peer group determined by the IA. Overall Assessment Assessment Criteria Based on our review, we determined Classes of Units ● Performance that the fund delivers value. We have looked at charges across ● Comparable Market Rates ● Comparable Services Performance unit classes in the fund. We have ● AFM Costs Our assessment concluded that the taken reasonable steps to identify investors eligible for a lower priced ● Economies of Scale fund is delivering on its objective of ● unit class and, where identified, Quality of Service tracking its benchmark within a ● Classes of Units reasonable margin over the one- have acted in their best interests by year period. giving notice of conversion. Eligible Comparable Market Rates investors in the A and L unit classes Costs, Charges & Service Quality 0.11% 0.18% were moved to the D unit class and Fund OCF1 Peer Group OCF2 We reviewed the AFM costs are being charged lower fees as a associated with the fund, together result. with the quality of services provided > Click for more fund information. iShares Overseas Government Bond Index Fund (UK) BlackRock Collective Investment Funds

The fund aims to provide a return on and benefits generated from our investment by tracking closely the economies of scale, and concluded performance of its benchmark. that the fund is appropriately priced. Additionally, we confirmed that the Benchmark fund is priced at a reasonable level JP Morgan Global Government Bond when compared to both an external Index ex UK peer group determined by the IA and Overall Rating Morningstar / IA Categories to similar BlackRock funds. Delivers value EAA Fund Global Bond / Global Bonds Classes of Units We have looked at charges across Overall Assessment unit classes in the fund. We have Assessment Criteria Based on our review, we determined taken reasonable steps to identify ● Performance that the fund delivers value. investors eligible for a lower priced ● Comparable Market Rates ● Performance unit class and, where identified, Comparable Services ● Our assessment concluded that the have acted in their best interests by AFM Costs ● Economies of Scale fund is delivering on its objective of giving notice of conversion. Eligible ● Quality of Service tracking its benchmark within a investors in the A and L unit classes ● Classes of Units reasonable margin over the one- were moved to the D unit class and are being charged lower fees as a year period. Comparable Market Rates result. Costs, Charges & Service Quality 0.11% 0.18% 1 2 We reviewed the AFM costs Fund OCF Peer Group OCF associated with the fund, together with the quality of services provided > Click for more fund information.

1 OCF for D Accumulation class of fund 2 IA sector median OCF

Value Assessment | As of June 2020 | 92 iShares Pacific ex Japan Equity Index Fund (UK) BlackRock Collective Investment Funds

The fund aims to provide a return on with the quality of services provided investment by tracking closely the and benefits generated from our performance of its benchmark. economies of scale, and concluded that the fund is appropriately priced. Benchmark BlackRock does not have any FTSE World Asia-Pacific ex-Japan comparable funds in its product Index portfolio, but our assessment Overall Rating Morningstar / IA Categories confirmed that the fund is at a Delivers value EAA Fund Asia-Pacific ex-Japan reasonable level when compared to Equity / Asia Pacific Excluding both comparable segregated Japan mandates and to an external peer Assessment Criteria Overall Assessment group determined by the IA. ● Performance Based on our review, we determined Classes of Units ● Comparable Market Rates that the fund delivers value. We have looked at charges across ● Comparable Services Performance unit classes in the fund. We have ● AFM Costs Our assessment concluded that the taken reasonable steps to identify ● Economies of Scale fund is delivering on its objective of investors eligible for a lower priced ● Quality of Service ● tracking its benchmark within a unit class and, where identified, Classes of Units reasonable margin over the one- have acted in their best interests by Comparable Market Rates year period. giving notice of conversion. Eligible investors in the A and L unit classes 0.12% 0.23% Fund OCF1 Peer Group OCF2 Costs, Charges & Service Quality were moved to the D unit class and We reviewed the AFM costs are being charged lower fees as a associated with the fund, together result. > Click for more fund information. iShares UK Equity Index Fund (UK) BlackRock Collective Investment Funds

The fund aims to provide a return on economies of scale, and concluded investment by tracking closely the that the fund is appropriately priced. performance of its benchmark. Additionally, we confirmed that the fund is priced at a reasonable level Benchmark when compared to both an external FTSE All Share Index peer group determined by the IA and Morningstar / IA Categories to similar BlackRock funds. Overall Rating EAA Fund UK Large-Cap Equity / Delivers value UK All Companies Classes of Units We have looked at charges across Overall Assessment unit classes in the fund. We have Based on our review, we determined taken reasonable steps to identify Assessment Criteria that the fund delivers value. investors eligible for a lower priced ● Performance Performance unit class and, where identified, ● Comparable Market Rates ● Our assessment concluded that the have acted in their best interests by Comparable Services ● AFM Costs fund is delivering on its objective of giving notice of conversion. Eligible investors in the A and L unit classes ● Economies of Scale tracking its benchmark within a ● were moved to the D unit class and Quality of Service reasonable margin over a one-year ● Classes of Units period. are being charged lower fees as a result. Costs, Charges & Service Quality Comparable Market Rates We reviewed the AFM costs 0.05% 0.14% 1 2 associated with the fund, together Fund OCF Peer Group OCF with the quality of services provided and benefits generated from our > Click for more fund information.

1 OCF for D Accumulation class of fund 2 IA sector median OCF

Value Assessment | As of June 2020 | 93 iShares UK Gilts All Stocks Index Fund (UK) BlackRock Collective Investment Funds

The fund aims to provide a return on and benefits generated from our investment by tracking closely the economies of scale, and concluded performance of its benchmark. that the fund is appropriately priced. Additionally, we confirmed that the Benchmark fund is priced at a reasonable level FTSE Actuaries UK Conventional when compared to both an external Gilts All Stocks Index peer group determined by the IA and Overall Rating Morningstar / IA Categories to similar BlackRock funds. Delivers value EAA Fund GBP Government Bond / UK Gilts Classes of Units We have looked at charges across Overall Assessment unit classes in the fund. We have Assessment Criteria Based on our review, we determined taken reasonable steps to identify ● Performance that the fund delivers value. investors eligible for a lower priced ● Comparable Market Rates ● Comparable Services Performance unit class and, where identified, have acted in their best interests by ● AFM Costs Our assessment concluded that the ● giving notice of conversion. Eligible Economies of Scale fund is delivering on its objective of ● Quality of Service investors in the A and L unit classes tracking its benchmark within a ● Classes of Units reasonable margin over the one- were moved to the D unit class and year period. are being charged lower fees as a Comparable Market Rates result. Costs, Charges & Service Quality 0.11% 0.15% Fund OCF1 Peer Group OCF2 We reviewed the AFM costs associated with the fund, together with the quality of services provided > Click for more fund information. iShares US Equity Index Fund (UK) BlackRock Collective Investment Funds

The fund aims to provide a return on economies of scale, and concluded investment by tracking closely the that the fund is appropriately priced. performance of its benchmark. Additionally, we confirmed that the fund is priced at a reasonable level Benchmark when compared to both an external FTSE USA Index peer group determined by the IA and Morningstar / IA Categories to similar BlackRock funds. Overall Rating EAA Fund US Large-Cap Blend Delivers value Equity / North America Classes of Units We have looked at charges across Overall Assessment unit classes in the fund. We have Based on our review, we determined taken reasonable steps to identify Assessment Criteria that the fund delivers value. investors eligible for a lower priced ● Performance ● Performance unit class and, where identified, Comparable Market Rates ● Our assessment concluded that the have acted in their best interests by Comparable Services ● AFM Costs fund is delivering on its objective of giving notice of conversion. Eligible investors in the A and L unit classes ● Economies of Scale tracking its benchmark within a ● were moved to the D unit class and Quality of Service reasonable margin over the one- ● Classes of Units year period. are being charged lower fees as a result. Costs, Charges & Service Quality Comparable Market Rates We reviewed the AFM costs 0.05% 0.09% Fund OCF1 Peer Group OCF2 associated with the fund, together with the quality of services provided and benefits generated from our > Click for more fund information.

1 OCF for D Accumulation class of fund 2 IA sector median OCF

Value Assessment | As of June 2020 | 94 MyMap 3 Fund BlackRock Investment Funds

The fund aims to provide, over track to deliver its volatility target assessment concluded that there periods of five consecutive years, a over five years, as well as strong net are no other unit classes that serve return on investment through an active return from inception to date. broadly the same purpose and thus actively managed portfolio, while we have not made any changes to Costs, Charges & Service Quality also maintaining a risk profile for the investors’ holdings. We reviewed the AFM costs fund of 3%-6%, as measured by associated with the fund, together volatility of the fund’s returns, with the quality of services provided converted into an annual rate, over a Overall Rating and benefits generated from our five-year period. Delivers value economies of scale, and concluded Benchmark that the fund is appropriately priced. The fund is actively managed and Additionally, we confirmed that the the investment manager has fund is priced at a reasonable level Assessment Criteria discretion to select the fund’s when compared to both an external ● Performance investments and is not constrained peer group determined by the IA and ● Comparable Market Rates ● by any benchmark in this process. to similar BlackRock funds. Comparable Services ● AFM Costs Morningstar / IA Categories Classes of Units ● Economies of Scale EAA Fund GBP Flexible Allocation / We have looked at charges across all ● Quality of Service Volatility Managed unit classes in the fund. We have ● Classes of Units taken all reasonable steps to identify Overall Assessment investors who are in a higher Comparable Market Rates Based on our review, we determined charging class and have acted in 0.17% 0.63% that the fund delivers value. 1 2 their best interests by assessing Fund OCF Peer Group OCF Performance whether there are similar classes for This is a relatively new fund but on which they are eligible. Our > Click for more fund information.

MyMap 4 Fund BlackRock Investment Funds

The fund aims to provide, over track to deliver its volatility target assessment concluded that there periods of five consecutive years, a over five years, as well as strong net are no other unit classes that serve return on investment through an active return from inception to date. broadly the same purpose and thus actively managed portfolio while also we have not made any changes to Costs, Charges & Service Quality maintaining a risk profile for the investors’ holdings. We reviewed the AFM costs fund’s portfolio of 6%-9% as associated with the fund, together measured by volatility of the fund’s with the quality of services provided returns, converted into an annual Overall Rating and benefits generated from our rate, over a five-year period. Delivers value economies of scale, and concluded Benchmark that the fund is appropriately priced. The fund is actively managed and Additionally, we confirmed that the the investment manager has fund is priced at a reasonable level Assessment Criteria discretion to select the fund’s when compared to both an external ● Performance investments and is not constrained peer group determined by the IA and ● Comparable Market Rates by any benchmark in this process. to similar BlackRock funds. ● Comparable Services ● AFM Costs Morningstar / IA Categories Classes of Units ● Economies of Scale EAA Fund GBP Flexible Allocation / We have looked at charges across all ● Quality of Service Volatility Managed unit classes in the fund. We have ● Classes of Units taken all reasonable steps to identify Overall Assessment investors who are in a higher Comparable Market Rates Based on our review, we determined charging class and have acted in 0.17% 0.63% that the fund delivers value. 1 2 their best interests by assessing Fund OCF Peer Group OCF Performance whether there are similar classes for This is a relatively new fund but on which they are eligible. Our > Click for more fund information.

1 OCF for D Accumulation class of fund 2 IA sector median OCF Value Assessment | As of June 2020 | 95 MyMap 5 Fund BlackRock Investment Funds

The fund aims to provide, over track to deliver its volatility target assessment concluded that there periods of five consecutive years, a over five years, as well as strong net are no other unit classes that serve return on investment through an active return from inception to date. broadly the same purpose and thus actively managed portfolio, while we have not made any changes to Costs, Charges & Service Quality also maintaining a risk profile for the investors’ holdings. We reviewed the AFM costs fund’s portfolio of 8%-11% as associated with the fund, together measured by volatility of the fund’s with the quality of services provided returns, converted into an annual Overall Rating and benefits generated from our rate, over a five-year period. Delivers value economies of scale, and concluded Benchmark that the fund is appropriately priced. The fund is actively managed and Additionally, we confirmed that the the investment manager has fund is priced at a reasonable level Assessment Criteria discretion to select the fund’s when compared to both an external ● Performance investments and is not constrained peer group determined by the IA and ● Comparable Market Rates ● by any benchmark in this process. to similar BlackRock funds. Comparable Services ● AFM Costs Morningstar / IA Categories Classes of Units ● Economies of Scale EAA Fund GBP Flexible Allocation / We have looked at charges across all ● Quality of Service Volatility Managed unit classes in the fund. We have ● Classes of Units taken all reasonable steps to identify Overall Assessment investors who are in a higher Comparable Market Rates Based on our review, we determined charging class and have acted in 0.17% 0.63% that the fund delivers value. 1 2 their best interests by assessing Fund OCF Peer Group OCF Performance whether there are similar classes for This is a relatively new fund but on which they are eligible. Our > Click for more fund information.

MyMap 5 Select ESG Fund BlackRock Investment Funds

The fund aims to provide, over We determined that the fund is too whether there are similar classes for periods of five consecutive years, a new to rate, given it has less than 12 which they are eligible. Our return on investment through an months of performance. assessment concluded that there actively managed portfolio, while are no other unit classes that serve Performance also maintaining a risk profile of broadly the same purpose and thus We will continue to evaluate the 8%-11%, as measured by volatility we have not made any changes to fund as part of our usual processes of the fund’s returns, converted into investors’ holdings. as it develops a track record. an annual rate, over a five-year Costs, Charges & Service Quality period. At least 80% of the fund’s Overall Rating We reviewed the AFM costs asset allocation will be invested in Too new to rate other funds which are subject to associated with the fund, together ESG-related requirements. with the quality of services provided and benefits generated from our Benchmark economies of scale, and concluded Assessment Criteria The fund is actively managed that the fund is appropriately priced. ● Performance without reference to a benchmark, Our assessment confirmed that the ● Comparable Market Rates meaning that the investment fund is priced at a reasonable level ● Comparable Services manager has absolute discretion to ● when compared to internal peers AFM Costs select the fund’s investments and is ● Economies of Scale and to an external peer group. not constrained by any target, ● Quality of Service comparator or performance Classes of Units ● Classes of Units benchmark. We have looked at charges across all unit classes in the fund. We have Comparable Market Rates Morningstar / IA Categories taken all reasonable steps to identify 0.17% 0.63% EAA Fund GBP Flexible Allocation / 1 3 investors who are in a higher Fund OCF Peer Group OCF -- charging class and have acted in Overall Assessment their best interests by assessing > Click for more fund information.

1 OCF for D Accumulation class of fund 2 IA sector median OCF 3 Fund is not assigned to IA sector; median OCF for broad group sector recommended by Fitz Partners Value Assessment | As of June 2020 | 96 MyMap 6 Fund BlackRock Investment Funds

The fund aims to provide, over over five years, as well as strong net broadly the same purpose and thus periods of five consecutive years, a active return from inception to date. we have not made any changes to return on investment through an investors’ holdings. Costs, Charges & Service Quality actively managed portfolio, while We reviewed the AFM costs also maintaining a risk profile for the associated with the fund, together fund’s portfolio of 10%-15%, as with the quality of services provided measured by volatility of the fund’s and benefits generated from our returns, converted into an annual economies of scale, and concluded rate, over a five-year period. Overall Rating that the fund is appropriately priced. Delivers value Benchmark Additionally, we confirmed that the The fund is actively managed and fund is priced at a reasonable level the investment manager has when compared to both an external discretion to select the fund’s peer group determined by the IA and Assessment Criteria investments and is not constrained to similar BlackRock funds. ● Performance by any benchmark in this process. ● Comparable Market Rates Classes of Units ● Comparable Services Morningstar / IA Categories We have looked at charges across all ● AFM Costs EAA Fund GBP Flexible Allocation / unit classes in the fund. We have ● Economies of Scale Volatility Managed taken all reasonable steps to identify ● Quality of Service investors who are in a higher ● Classes of Units Overall Assessment charging class and have acted in Based on our review, we determined their best interests by assessing Comparable Market Rates that the fund delivers value. whether there are similar classes for 0.17% 0.63% 1 2 Performance which they are eligible. Our Fund OCF Peer Group OCF This is a relatively new fund but on assessment concluded that there track to deliver its volatility target are no other unit classes that serve > Click for more fund information.

1 OCF for D Accumulation class of fund 2 IA sector median OCF

Value Assessment | As of June 2020 | 97 As of 30 June 2020

Glossary of Terms

Absolute Return Benchmark Return of fund without comparison to any benchmark or Index against which the performance of a fund can be standard measured

Active Strategy/Active Investing Beta Investment approach that uses human judgement and / Measure of the volatility, or systematic risk, of a security or quantitative tools to select securities; active fund or portfolio compared to the market as a whole managers seek to outperform benchmarks or meet specific total return targets Broadridge Financial services company that provided the BFM Alpha Target Board with data and support during the value Amount by which an investment seeks to outperform its assessment benchmark index Capital Preservation Annual Service Charge (ASC) Investment approach that aims to prevent or limit losses Charge that covers non-portfolio management related in a portfolio costs, such as transfer agency services and fund accounting services Composite Benchmark Benchmark made up of multiple indices Assets Under Management Total market value of investments held within a fund or Custodian Cost investment company on behalf of investors Costs paid to a custodian for safekeeping securities

Value Assessment | As of June 2020 | 98 Custom Peer Group Management Style Group of competitor funds with similar characteristics Investment approach to managing a fund used to make comparisons of performance or fees; custom peer groups were defined by Broadridge and Market Capitalisation took into account Investment Association sectors and Total value of a company’s shares of stock Morningstar categories Median Direct Investor Middle point of a range of values Investor who invests without an intermediary, such as an investment platform, bank, or financial adviser Momentum Factor Focuses on selecting securities with upward price trends ESG Environmental, social, and governance Morningstar Category Group of funds with similar characteristics defined by Factor Investing Morningstar Investment approach that involves targeting specific drivers of return across asset classes, such as Net Performance macroeconomic or style factors Return on an investment inclusive of fees

Fitz Partners Ongoing Charges Figure (OCF) Financial services company that provided the BFM Day-to-day costs of running a fund that include the Board with data and support during the value annual management charge, the annual service charge, assessment and operational costs; expressed as a percentage of assets Full Market Cycle Trends or patterns that emerge over several years, Outcome-Oriented Strategy covering periods of market recession and expansion Investment approach that offers fund investors solutions to their specific needs, such as generating Gross Performance income or limiting volatility Total rate of return on an investment before deduction of fees Peer Group Group of competitor funds with similar characteristics Growth Factor used to make comparisons of performance or fees Focuses on selecting securities with high prospects for growth Quality Factor Focuses on selecting securities with stable earnings, Index Strategy stronger balance sheets and higher margins Investment approach that involves closely tracking returns of a benchmark index Quartile Division of observations into four intervals based on the Investment Association (IA) Sector values of the data Group of funds with similar characteristics defined by the Investment Association Segregated Mandate Portfolio designed and run specifically for an Investment Horizon institutional client Recommended holding period for a fund Short Position Liquidity Holding a security with the expectation that it will Degree to which an asset can be sold and converted into decrease in value cash without affecting its price Volatility Long Position Variations in the performance of an investment; Holding a security with the expectation that it will rise in expressed as an annualised percentage value

Management Fee Charge that covers the costs of portfolio management services provided to a fund

Value Assessment | As of June 2020 | 9999 About BlackRock

BlackRock is a global investment manager and As of 30th September 2020, the firm has $7.8 trillion in technology provider that helps people achieve their assets under management, and employs over 16,000 financial goals through investing. BlackRock has grown employees in more than 30 countries. from a start-up founded in 1988 to become a market leader, both through acquisitions and through organic growth as more and more clients have entrusted BlackRock with their investments.

BlackRock’s purpose is to help more and more people Contact us experience financial well-being. The firm serves the full For additional information on BlackRock, range of UK investors, including pension schemes, please visit: employers and charities, financial and wealth advisers, and individuals who are saving for retirement or other blackrock.com/uk financial goals. BlackRock combines the benefits of @blackrock_uk worldwide reach with local service and relationships to deliver for these clients. linkedin.com/company/blackrock.

Value Assessment | As of June 2020 | 100 Important Information BlackRock has not considered the suitability of any investment against your individual needs and risk tolerance. To ensure you understand whether our product is suitable, please read the Key Investor Information Document. Any decision to invest must be based solely on the information contained in the Company’s Prospectus, Key Investor Information Document and the latest half-yearly report and unaudited accounts and/or annual report and audited accounts. Investors should read the fund specific risks in the Key Investor Information Document and the Company’s Prospectus. We recommend you seek independent professional advice prior to investing. If, after reading this brochure, you have any questions or would like any additional information, please contact your financial adviser or speak to our Investor Services Team on 0800 445522. Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested.

Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy. Changes in the rates of exchange between currencies may cause the value of investments to diminish or increase. Fluctuation may be particularly marked in the case of a higher volatility fund and the value of an investment may fall suddenly and substantially. Levels and basis of taxation may change from time to time. Issued by BlackRock Investment Management (UK) Limited (authorised and regulated by the Financial Conduct Authority). Registered office: 12 Throgmorton Avenue, London, EC2N 2DL. Registered in England No. 2020394. Tel: 020 7743 3000. For your protection, telephone calls are usually recorded. BlackRock is a trading name of BlackRock Investment Management (UK) Limited. © 2020 BlackRock, Inc. All Rights reserved. BLACKROCK, BLACKROCK SOLUTIONS, iSHARES, SO WHAT DO I DO WITH MY MONEY, INVESTING FOR A NEW WORLD, and BUILT FOR THESE TIMES are registered and unregistered trademarks of BlackRock, Inc. or its subsidiaries in the United States and elsewhere. All other trademarks are those of their respective owners.