BlackRock Asset Management Deutschland AG
Annual Report for the year ended 30 April 2019 for the Investment Fund
iShares MDAX® UCITS ETF (DE)
Contents
Notice and Note on Licences 3 Additional Information for Investors in Austria, France, the United Kingdom and Switzerland 4 Report of the Management Board 5 iShares MDAX® UCITS ETF (DE) 6 Fund Management Activity Report 6 Annual Report for iShares MDAX® UCITS ETF (DE) 8 Management Company and Depository 25
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Notice
The investment funds named in this report are governed by German law. Fund units are bought on the basis of the currently valid prospectus and investment conditions, supplemented by the most recent annual report concerned and also by the semi-annual report if such a report exists that is more recent than the last annual report.
The annual and semi-annual reports were drawn up in German and translated into English.
Only the German version is legally binding.
Note on Licences
Legal information
The German iShares funds mentioned in this document are investment funds subject to the German Investment Code. These funds are managed by BlackRock Asset Management Deutschland AG and are regulated by the Federal Financial Supervisory Authority (BaFin).
For investors in Germany
The sales prospectuses of the funds issued in Germany are available free of charge electronically and in hard copy from BlackRock Asset Management Deutschland AG, Lenbachplatz 1, 80333 Munich, Germany, Tel.: +49 (0) 89 42729 – 5858, Fax: +49 (0) 89 42729 – 5958, [email protected].
Risk warnings
The value of investments in all the iShares funds may fluctuate, and investors may not get back the amount invested. Past performance may not be repeated and is no guarantee of future returns. Investment risks from market and currency losses as well as high volatility and concentration risk cannot be excluded.
Index – Disclaimers of liability
MDAX® is a registered trademark of Deutsche Börse AG.
© 2019 BlackRock, Inc. All rights reserved. BLACKROCK, iSHARES, BLACKROCK SOLUTIONS, ALADDIN, LIFEPATH, 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 offices in the USA and other countries. All other trademarks are the property of the respective rights owner.
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Additional Information for Investors in Austria, France, the United Kingdom and Switzerland
The sales prospectuses, including investment terms and conditions, annual reports and semi-annual reports can be obtained, without charge, from the relevant paying agent and distributor.
Paying Agent and Distributor in Austria:
UniCredit Bank Austria AG Schottengasse 6-8 1010 Vienna, Austria
Tax Representative in Austria:
Ernst & Young Wagramer Str. 19 1220 Vienna, Austria
Paying Agent and Distributor in France:
BNP Paribas Securities Services 20, BD. des Italiens 75009 Paris, France
Facility Agent in the UK:
BlackRock Advisors (UK) Limited 12 Throgmorton Avenue London EC2N 2DL United Kingdom
Paying Agent in Switzerland:
State Street Bank International GmbH, Munich, Zurich branch Beethovenstraße 19 8027 Zurich, Switzerland
Representative in Switzerland:
BlackRock Asset Management Schweiz AG Bahnhofstrasse 39 8001 Zurich, Switzerland
The prospectus, key investor information documents (KIIDs), investment conditions/articles of incorporation and the annual and semi-annual reports of the fund can be obtained free of charge on request from the representative of the fund in Switzerland. This also applies to the list of purchases/sales.
Additional information for investors in countries outside Germany:
Performance of the fund over the last three calendar years: 31/12/2015 – 31/12/2016: +6.34% 31/12/2016 – 31/12/2017: +17.14% 31/12/2017 – 31/12/2018: -18.24%
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Report of the Management Board
Dear Investors,
BlackRock Asset Management Deutschland AG is looking back on challenging months in the 2018 period under review. In an uncertain market environment, particularly in the fourth quarter of 2018, private and institutional investors invested fewer new assets in exchange-traded index funds (ETFs) than in previous years. At the European level, iShares achieved 2018 net cash inflows of around USD 23.3 billion, or EUR 20.5 billion (previous year: USD 40.9 billion, or EUR 34.1 billion), BlackRock is the global market leader for ETFs under the iShares brand.
Our ETF product range currently includes 335 iShares funds approved in Germany, providing investors here at home with easy and diversified access to a large number of worldwide markets and asset classes. Of these exchange-traded index funds, 55, i.e. around a sixth, are issued in Germany. The code (DE) in the fund name identifies them as such.
As at 30 April 2019, the volume of assets under management for the German funds was EUR 39.6 billion. Within that, the volume of the 21 sub-funds permitted for public distribution was EUR 5.70 billion on the same reporting date. This annual report provides detailed information about the performance of our index funds.
Institutional and private investors alike value iShares ETFs not only as building blocks that enable them to put their own investment ideas into practice in their portfolios, but as the funds become more widespread, demand also rises for ETF-based insurance solutions, ETF savings plans and EFT-based asset management products. In light of this, together with our partners we have developed models that enable different types of investor with differing risk/return profiles to create suitable asset inventories. Over the course of the period under review, this included developing sample portfolios for banks, various online brokers and digital asset management product providers, a.k.a. “Robo Advisors”.
The listing of the first iShares ETFs on the Deutsche Börse (German Stock Exchange) in April 2000 forever changed the European investment landscape. ETFs have provided investors with new avenues in portfolio management through their high level of liquidity, efficiency and transparency. Today in Europe there are more than 2,300 ETFs, which are available in more than 20 countries from over 40 providers.
As a provider from the outset, iShares retains its outstanding positioning on the European ETF market. We continue to invest in excellent service and products that meet the needs of our clients. We intend to develop our market leadership further through the continuous and innovative extension of our product range. Among the strategic competitive advantages of iShares ETFs are high market liquidity, narrow bid/ask spreads and a high level of precision in index replication.
Please visit our website at www.iShares.de or call us on +49 (0) 89 42729 - 5858 for further information.
We would like to thank you for your trust and we are looking forward to continuing to work together in partnership.
Your BlackRock Asset Management Deutschland AG Directors,
Dirk Schmitz Harald Klug Peter Scharl
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Annual Report for iShares MDAX® UCITS ETF (DE)
for the period under review from 01/05/2018 to 30/04/2019
Fund Management Activity Report
Investment objectives and policies
The investment fund iShares MDAX® UCITS ETF (DE) is an exchange-traded index fund (ETF) that tracks the performance of the MDAX® index as closely as possible. The index tracks 60 medium-sized companies in all industries, which are directly related to the 30 DAX ® securities in terms of market capitalisation and stock exchange turnover and are listed in the Prime Standard segment of the Frankfurt Stock Exchange. Companies that have their registered office or operational headquarters in Germany or foreign companies that focus on trading on Xetra® and have their registered office in an EU or EFTA State qualify for the index. The product represents market capitalisation based on the current share price and the total number of shares of a company. The investment fund invests directly in the securities included in the index in proportion to their weighting in the index and maintains the lowest possible liquidity ratio. To replicate the index, the investment fund invests directly in the securities in the index under a passive investment approach.
Structure of the investment fund with regard to investment objectives and significant changes during the reporting period
The duplication percentage of the fund in comparison with the benchmark index was 99.950% at the end of the reporting period. Inflows during the reporting period were also invested in line with the weighting of the shares in the index. Dividends are accumulated in the fund. The fund may enter into securities lending transactions. iShares MDAX® UCITS ETF (DE) is an accumulating fund in which the dividends received in the previous financial year are reinvested. The realised profits and losses are primarily the result of transactions involving equities that were carried out as a consequence of changes in indices, corporate actions and the redemption of shares. Changes to the index published by the index provider were directly taken into account in the fund.
New inclusions
Carl Zeiss Meditec AG Inhaber-Aktien o.N. DE0005313704
MorphoSys AG Inhaber-Aktien o.N. DE0006632003
Commerzbank AG Inhaber-Aktien o.N. DE000CBK1001
Qiagen N.V. Aandelen op naam EO 0.01 NL0012169213
Bechtle AG Inhaber-Aktien o.N. DE0005158703
Sartorius AG Vorzugsaktien o.St. o.N. DE0007165631
Telefónica Deutschland Hldg AG Namens-Aktien o.N. DE000A1J5RX9
Knorr-Bremse AG Inhaber-Aktien o.N. DE000KBX1006
Siemens Healthineers AG Namens-Aktien o.N. DE000SHL1006
Dialog Semiconductor PLC Registered Shares LS 0.10 GB0059822006
PUMA SE Inhaber-Aktien o.N. DE0006969603
1&1 Drillisch AG Inhaber-Aktien o.N. DE0005545503
Evotec SE Inhaber-Aktien o.N. DE0005664809
Software AG Namens-Aktien o.N. DE000A2GS401
Delivery Hero SE Namens-Aktien o.N. DE000A2E4K43
freenet AG Namens-Aktien o.N. DE000A0Z2ZZ5
Siltronic AG Namens-Aktien o.N. DE000WAF3001
Scout24 AG Namens-Aktien o.N. DE000A12DM80
Nemetschek SE Inhaber-Aktien o.N. DE0006452907
United Internet AG Namens-Aktien o.N. DE0005089031
Removals
STADA Arzneimittel AG Namens-Aktien o.N. DE0007251803
Talanx AG Namens-Aktien o.N. DE000TLX1005
Ströer SE & Co. KGaA Inhaber-Aktien o.N. DE0007493991
CECONOMY AG Inhaber-Stammaktien o.N. DE0007257503
Schaeffler AG Inhaber-Vorzugsakt.o.St. o.N. DE000SHA0159
CTS Eventim AG & Co. KGaA Inhaber-Aktien o.N. DE0005470306
Jungheinrich AG Inhaber-Vorzugsakt.o.St.o.N. DE0006219934
KRONES AG Inhaber-Aktien o.N. DE0006335003
Salzgitter AG Inhaber-Aktien o.N. DE0006202005
LEONI AG Namens-Aktien o.N. DE0005408884
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Annual Report for iShares MDAX® UCITS ETF (DE)
for the period under review from 01/05/2018 to 30/04/2019
Material risks and events in the reporting period
Market price risk In order to achieve the investment objective of tracking the performance of the MDAX® index as closely as possible in the reporting period, fund management pursued an exclusively passive investment approach. Accordingly, as part of the fund management activities affecting this investment fund, no risks were actively managed or entered into. In the period under review, the investment fund was subject to the general and specific market price risk arising from individual stocks. Throughout the reporting period, the investment fund implemented the individual selection of securities within the investment universe of German equities prescribed by the provider of the index. The investment fund was thus subject to a high market price risk.
Currency risk As prescribed by the index, the investment fund invested in equities denominated in euros in the reporting period. There was thus no currency risk for EUR investors.
Liquidity risk The assets held in the investment fund were at all times liquid, so that the liquidity risk can be regarded as low.
Operational risk Operational risks for the investment fund are managed using BlackRock Asset Management Deutschland AG’s risk management system. Business areas and processes that are relevant to this investment fund and which are outsourced by BlackRock Asset Management Deutschland AG to external companies are subject to an outsourcing controlling process within BlackRock Asset Management Deutschland AG. This includes the outsourcing of fund accounting to State Street Bank International GmbH, Munich, as well as the intragroup outsourcing of the trade management process to BlackRock Investment Management (UK) Limited, London. Processes that are material to this investment fund and its related operational risks are subject to a process of regularly identifying, analysing and monitoring operational risks. If operational risks materialise, these events are recorded immediately in a risk database for appropriate documentation and analysis, and steps are initiated and taken to minimise the operational risks.
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Annual Report for iShares MDAX® UCITS ETF (DE)
for the period under review from 01/05/2018 to 30/04/2019
Statement of assets and liabilities as at 30/04/2019
Market value % of fund
in EUR assets1)
I. Assets 1,753,289,988,02 100,04
1. Shares 1,752,245,135,25 99,98
Germany 1,436,467,057,16 81,97
United Kingdom (UK) 16,441,285,50 0,94
Luxembourg 67,250,075,87 3,84
Netherlands 232,086,716,72 13,24
2. Derivatives 40,330,00 0,00
Forward contracts 40,330,00 0,00
3. Receivables 892,211,00 0,05
4. Bank accounts 57,311,77 0,00
5. Other assets 55,000,00 0,00
II. Liabilities -753,292,91 -0,04
Other liabilities -753,292,91 -0,04
III. Fund assets 1,752,536,695,11 100,00
1) Rounding of percentages during the calculation may result in slight rounding differences.
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Annual Report for iShares MDAX® UCITS ETF (DE)
for the period under review from 01/05/2018 to 30/04/2019
Statement of Net Assets as at 30/04/2019
Units, shares or % of currency in As at Purchases/ Sales/ Market value fund Designation of class of security ISIN Market 1,000s 30/04/2019 Additions Disposals Price in EUR assets2)
in the reporting period
Securities 1,752,245,135,25 99,98
Exchange-traded securities 1,752,245,135,25 99,98
Shares 1,752,245,135,25 99,98
1&1 Drillisch AG Inhaber-Aktien o.N. DE0005545503 Units 320,325 411,397 91,072 EUR 33,240 10,647,603,00 0,61
Aareal Bank AG Inhaber-Aktien o.N. DE0005408116 Units 383,662 64,336 371,780 EUR 31,110 11,935,724,82 0,68
Airbus SE Aandelen op naam EO 1 NL0000235190 Units 1,456,563 328,455 1,274,805 EUR 121,940 177,613,292,22 10,13
alstria office REIT-AG Inhaber-Aktien o.N. DE000A0LD2U1 Units 1,085,028 1,415,108 2,142,341 EUR 13,980 15,168,691,44 0,87
Aroundtown SA Bearer Shares EO 0.01 LU1673108939 Units 5,500,371 1,425,124 3,562,809 EUR 7,226 39,745,680,85 2,27
Aurubis AG Inhaber-Aktien o.N. DE0006766504 Units 231,271 41,187 247,229 EUR 43,420 10,041,786,82 0,57
Axel Springer SE vink.Namens-Aktien o.N. DE0005501357 Units 369,999 76,978 289,976 EUR 50,500 18,684,949,50 1,07
Bechtle AG Inhaber-Aktien o.N. DE0005158703 Units 187,154 238,303 51,149 EUR 91,400 17,105,875,60 0,98
Brenntag AG Namens-Aktien o.N. DE000A1DAHH0 Units 1,058,992 240,130 856,867 EUR 48,060 50,895,155,52 2,90
Carl Zeiss Meditec AG Inhaber-Aktien o.N. DE0005313704 Units 252,147 283,819 31,672 EUR 87,550 22,075,469,85 1,26
Commerzbank AG Inhaber-Aktien o.N. DE000CBK1001 Units 6,806,300 8,651,365 1,845,065 EUR 8,012 54,532,075,60 3,11
Delivery Hero SE Namens-Aktien o.N. DE000A2E4K43 Units 899,609 1,471,560 571,951 EUR 41,090 36,964,933,81 2,11
Deutsche EuroShop AG Namens-Aktien o.N.3) DE0007480204 Units 344,050 76,039 320,504 EUR 26,740 9,199,897,00 0,52
Deutsche Pfandbriefbank AG Inhaber-Aktien o.N. DE0008019001 Units 922,389 476,472 796,200 EUR 12,410 11,446,847,49 0,65
Deutsche Wohnen SE Inhaber-Aktien o.N. DE000A0HN5C6 Units 2,277,298 610,325 2,157,686 EUR 40,070 91,251,330,86 5,21
Dialog Semiconductor PLC Registered Shares LS 0.10 GB0059822006 Units 476,559 486,958 10,399 EUR 34,500 16,441,285,50 0,94
Dürr AG Inhaber-Aktien o.N. DE0005565204 Units 337,890 309,227 255,774 EUR 40,130 13,559,525,70 0,77
Evonik Industries AG Namens-Aktien o.N. DE000EVNK013 Units 1,141,063 307,102 892,587 EUR 26,560 30,306,633,28 1,73
Evotec SE Inhaber-Aktien o.N. DE0005664809 Units 831,665 1,046,441 214,776 EUR 22,080 18,363,163,20 1,05
Fielmann AG Inhaber-Aktien o.N. DE0005772206 Units 163,409 30,819 142,460 EUR 63,300 10,343,789,70 0,59
Fraport AG Ffm.Airport.Ser.AG Inhaber-Aktien o.N. DE0005773303 Units 254,480 44,115 218,501 EUR 73,840 18,790,803,20 1,07
freenet AG Namens-Aktien o.N. DE000A0Z2ZZ5 Units 878,061 1,118,075 240,014 EUR 20,900 18,351,474,90 1,05
FUCHS PETROLUB SE Inhaber-Vorzugsakt. o.St.o.N. DE0005790430 Units 476,536 84,238 410,135 EUR 38,780 18,480,066,08 1,05
GEA Group AG Inhaber-Aktien o.N. DE0006602006 Units 1,049,660 194,246 1,105,960 EUR 24,920 26,157,527,20 1,49
Gerresheimer AG Inhaber-Aktien o.N. DE000A0LD6E6 Units 193,711 30,688 203,962 EUR 67,000 12,978,637,00 0,74
Grand City Properties S.A. Actions au Porteur EO 0.10 LU0775917882 Units 700,862 131,380 609,765 EUR 20,960 14,690,067,52 0,84
Hannover Rück SE Namens-Aktien o.N. DE0008402215 Units 411,446 84,511 366,198 EUR 134,400 55,298,342,40 3,16
HELLA GmbH & Co. KGaA Inhaber-Aktien o.N. DE000A13SX22 Units 304,768 51,810 255,825 EUR 48,460 14,769,057,28 0,84
HOCHTIEF AG Inhaber-Aktien o.N. DE0006070006 Units 124,430 22,317 107,313 EUR 133,000 16,549,190,00 0,94
HUGO BOSS AG Namens-Aktien o.N. DE000A1PHFF7 Units 424,266 82,765 373,052 EUR 62,160 26,372,374,56 1,50
innogy SE Inhaber-Aktien o.N. DE000A2AADD2 Units 523,362 95,665 1,105,812 EUR 41,390 21,661,953,18 1,24
K+S Aktiengesellschaft Namens-Aktien o.N. DE000KSAG888 Units 1,312,215 220,946 1,118,599 EUR 18,080 23,724,847,20 1,35
KION GROUP AG Inhaber-Aktien o.N. DE000KGX8881 Units 444,169 75,877 403,418 EUR 61,040 27,112,075,76 1,55
Knorr-Bremse AG Inhaber-Aktien o.N. DE000KBX1006 Units 329,737 336,877 7,140 EUR 96,650 31,869,081,05 1,82
LANXESS AG Inhaber-Aktien o.N. DE0005470405 Units 552,725 91,276 489,366 EUR 51,500 28,465,337,50 1,62
LEG Immobilien AG Namens-Aktien o.N. DE000LEG1110 Units 433,089 88,337 384,807 EUR 103,750 44,932,983,75 2,56
METRO AG Inhaber-Stammaktien o.N. DE000BFB0019 Units 1,154,462 210,316 999,679 EUR 15,100 17,432,376,20 0,99
MorphoSys AG Inhaber-Aktien o.N. DE0006632003 Units 216,404 275,463 59,059 EUR 88,400 19,130,113,60 1,09
MTU Aero Engines AG Namens-Aktien o.N. DE000A0D9PT0 Units 357,596 57,184 301,587 EUR 209,700 74,987,881,20 4,28
Nemetschek SE Inhaber-Aktien o.N. DE0006452907 Units 123,864 157,707 33,843 EUR 164,500 20,375,628,00 1,16
NORMA Group SE Namens-Aktien o.N. DE000A1H8BV3 Units 218,553 55,579 204,900 EUR 42,140 9,209,823,42 0,53
OSRAM Licht AG Namens-Aktien o.N.3) DE000LED4000 Units 661,967 111,620 563,733 EUR 30,490 20,183,373,83 1,15
ProSiebenSat.1 Media SE Namens-Aktien o.N. DE000PSM7770 Units 1,549,994 364,917 1,458,294 EUR 14,035 21,754,165,79 1,24
PUMA SE Inhaber-Aktien o.N. DE0006969603 Units 56,913 93,828 36,915 EUR 551,500 31,387,519,50 1,79
Qiagen N.V. Aandelen op naam EO 0.01 NL0012169213 Units 1,582,150 2,014,557 432,407 EUR 34,430 54,473,424,50 3,11
Rheinmetall AG Inhaber-Aktien o.N. DE0007030009 Units 294,641 49,906 250,342 EUR 102,300 30,141,774,30 1,72
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Annual Report for iShares MDAX® UCITS ETF (DE)
for the period under review from 01/05/2018 to 30/04/2019
Units, shares or % of currency in As at Purchases/ Sales/ Market value fund Designation of class of security ISIN Market 1,000s 30/04/2019 Additions Disposals Price in EUR assets2)
in the reporting period
Rocket Internet SE Inhaber-Aktien o.N. DE000A12UKK6 Units 520,108 79,105 471,920 EUR 23,500 12,222,538,00 0,70
RTL Group S.A. Actions au Porteur o.N. LU0061462528 Units 255,775 43,962 234,331 EUR 50,100 12,814,327,50 0,73
Sartorius AG Vorzugsaktien o.St. o.N. DE0007165631 Units 234,970 299,037 64,067 EUR 163,200 38,347,104,00 2,19
Scout24 AG Namens-Aktien o.N. DE000A12DM80 Units 737,574 1,228,206 490,632 EUR 45,900 33,854,646,60 1,93
Siemens Healthineers AG Namens-Aktien o.N. DE000SHL1006 Units 1,028,196 1,324,998 296,802 EUR 38,020 39,092,011,92 2,23
Siltronic AG Namens-Aktien o.N. DE000WAF3001 Units 142,312 181,241 38,929 EUR 87,360 12,432,376,32 0,71
Software AG Namens-Aktien o.N. DE000A2GS401 Units 336,234 428,170 91,936 EUR 33,960 11,418,506,64 0,65
Symrise AG Inhaber-Aktien o.N. DE000SYM9999 Units 874,712 177,940 711,941 EUR 85,700 74,962,818,40 4,28
TAG Immobilien AG Inhaber-Aktien o.N. DE0008303504 Units 1,004,478 195,518 882,495 EUR 20,040 20,129,739,12 1,15
Telefónica Deutschland Hldg AG Namens-Aktien o.N. DE000A1J5RX9 Units 6,277,948 7,686,965 1,409,017 EUR 2,896 18,180,937,41 1,04
Uniper SE Namens-Aktien o.N. DE000UNSE018 Units 1,254,580 235,084 1,214,847 EUR 27,010 33,886,205,80 1,93
United Internet AG Namens-Aktien o.N. DE0005089031 Units 811,022 1,032,640 221,618 EUR 35,730 28,977,816,06 1,65
Wacker Chemie AG Inhaber-Aktien o.N. DE000WCH8881 Units 102,891 19,489 89,779 EUR 78,040 8,029,613,64 0,46
Zalando SE Inhaber-Aktien o.N. DE000ZAL1111 Units 1,008,414 151,531 812,316 EUR 41,940 42,292,883,16 2,41
Derivatives 40,330,00 0,00
(The amounts marked with a minus sign are sold positions.)
Equity index derivatives 40,330,00 0,00
Receivables/liabilities
Equity index futures contracts 40,330,00 0,00
MDAX INDEX FUT JUN 19 EURX Number 5 EUR 40,330,00 0,00
Bank Accounts, Unsecuritised Money Market Instruments and Money Market Funds 57,311,77 0,00
Bank accounts 57,311,77 0,00
EUR balances 57,276,13 0,00
Depository: State Street Bank International GmbH EUR 57,276,13 % 100,000 57,276,13 0,00
Non-EU/EEA currencies 35,64 0,00
Depository: State Street Bank International GmbH ZAR 572,65 % 100,000 35,64 0,00
Other assets 947,211,00 0,05
Receivables from securities transactions EUR 892,211,00 892,211,00 0,05
Initial margin EUR 55,000,00 55,000,00 0,00
Other liabilities -753,292,91 -0,04
Management fee EUR -674,504,39 -674,504,39 -0,04
Received variation margin EUR -41,930,00 -41,930,00 -0,00
Other liabilities EUR -36,858,52 -36,858,52 -0,00
Fund assets EUR 1,752,536,695,11 100,00
Unit value EUR 221,84
Units in circulation Units 7,900,000
2) Rounding of percentages during the calculation may result in slight rounding differences. 3) These securities are partially or fully transferred as securities loans.
Notes on Securities Loans
Designation of class of security Nominal Securities lending
in units or Market value in EUR
currency in 1,000s Limited Unlimited Total
The following securities were transferred as securities loans as at the reporting date:
Deutsche EuroShop AG Namens-Aktien o.N. DE0007480204 Units 305,562 0,00 8,170,727,88
OSRAM Licht AG Namens-Aktien o.N. DE000LED4000 Units 390,075 0,00 11,893,386,75
Total value of securities loans repayable EUR 0,00 20,064,114,63 20,064,114,63
10 of 26
Annual Report for iShares MDAX® UCITS ETF (DE)
for the period under review from 01/05/2018 to 30/04/2019
Transactions during the reporting period, insofar as these no longer appear in the assets listed:
Securities purchases and sales, investment units and bonds (market allocation on the reporting date)
ISIN Units, shares Purchases/ Sales/ Volume or currency in Additions Disposals in 1,000 1,000s
Securities
Exchange-traded securities
Shares
CECONOMY AG Inhaber-Stammaktien o.N. DE0007257503 Units 48,890 1,924,816
CTS Eventim AG & Co. KGaA Inhaber-Aktien o.N. DE0005470306 Units 29,828 659,293
Jungheinrich AG Inhaber-Vorzugsakt.o.St.o.N. DE0006219934 Units 14,525 574,253
KRONES AG Inhaber-Aktien o.N. DE0006335003 Units 5,036 181,580
LEONI AG Namens-Aktien o.N. DE0005408884 Units 17,397 394,585
Salzgitter AG Inhaber-Aktien o.N. DE0006202005 Units 24,190 464,931
Schaeffler AG Inhaber-Vorzugsakt.o.St. o.N. DE000SHA0159 Units 93,148 2,070,648
STADA Arzneimittel AG Namens-Aktien o.N. DE0007251803 Units 4,949 259,535
Ströer SE & Co. KGaA Inhaber-Aktien o.N. DE0007493991 Units 12,258 302,004
Talanx AG Namens-Aktien o.N. DE000TLX1005 Units 33,978 645,753
Derivatives
(Option premiums or volume of option contracts converted into opening transactions; in the case of warrants, statement of purchases and sales)
Futures contracts
Equity index futures contracts
Purchased contracts: 9,106
Underlying security(ies):
MDAX Performance Index
Securities loans (trading volume valued on the basis of the value agreed when the loan transaction was concluded):
Volume Designation of class of security in 1,000
Unlimited EUR 485,731
Underlyings:
Aareal Bank AG Inhaber-Aktien o.N. (DE0005408116), Airbus SE Aandelen op naam EO 1 (NL0000235190), Bechtle AG Inhaber-Aktien o.N. (DE0005158703), CTS Eventim AG & Co. KGaA Inhaber-Aktien o.N. (DE0005470306), Deutsche Pfandbriefbank AG Inhaber-Aktien o.N. (DE0008019001), Dürr AG Inhaber-Aktien o.N. (DE0005565204), Evotec SE Inhaber-Aktien o.N. (DE0005664809), Fielmann AG Inhaber-Aktien o.N. (DE0005772206), GEA Group AG Inhaber-Aktien o.N. (DE0006602006), Gerresheimer AG Inhaber-Aktien o.N. (DE000A0LD6E6), HUGO BOSS AG Namens-Aktien o.N. (DE000A1PHFF7), K+S Aktiengesellschaft Namens-Aktien o.N. (DE000KSAG888), KRONES AG Inhaber-Aktien o.N. (DE0006335003), LEONI AG Namens-Aktien o.N. (DE0005408884), METRO AG Inhaber-Stammaktien o.N. (DE000BFB0019), NORMA Group SE Namens-Aktien o.N. (DE000A1H8BV3), OSRAM Licht AG Namens-Aktien o.N. (DE000LED4000), Rheinmetall AG Inhaber-Aktien o.N. (DE0007030009), Salzgitter AG Inhaber-Aktien o.N. (DE0006202005), Schaeffler AG Inhaber-Vorzugsakt.o.St. o.N. (DE000SHA0159), Scout24 AG Namens-Aktien o.N. (DE000A12DM80), Siltronic AG Namens-Aktien o.N. (DE000WAF3001), Ströer SE & Co. KGaA Inhaber-Aktien o.N. (DE0007493991), Symrise AG Inhaber-Aktien o.N. (DE000SYM9999), TAG Immobilien AG Inhaber-Aktien o.N. (DE0008303504), Wacker Chemie AG Inhaber-Aktien o.N. (DE000WCH8881), Zalando SE Inhaber-Aktien o.N. (DE000ZAL1111)
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Annual Report for iShares MDAX® UCITS ETF (DE)
for the period under review from 01/05/2018 to 30/04/2019
Profit and Loss Account (incl. Income Adjustment)
for the period from 01/05/2018 to 30/04/2019
I. Income
1. Dividends from domestic issuers EUR 32,260,514,73
2. Dividends from foreign issuers (before withholding tax) EUR 4,767,938,08
3. Interest from domestic liquidity investments EUR 2,34
4. Income from securities lending and securities repurchase agreements EUR 1,197,440,12
5. Deduction of foreign withholding tax EUR -718,129,39
6. Other income EUR 118,676,96
Total income EUR 37,626,442,84
II. Expenses
1. Interest from borrowings EUR -3,834,46
2. Management fee EUR -8,898,370,17
3. Other expenses EUR -5,089,869,89
Total expenses EUR -13,992,074,52
III. Ordinary net income EUR 23,634,368,32
IV. Disposals
1. Realised gains EUR 218,290,218,64
2. Realised losses EUR -69,234,882,22
Gain/loss on disposals EUR 149,055,336,42
V. Annual realised results EUR 172,689,704,74
1. Net change in unrealised gains EUR -172,600,655,86
2. Net change in unrealised losses EUR -67,048,190,52
VI. Annual unrealised results EUR -239,648,846,38
VII. Result for the financial year EUR -66,959,141,64
Change in Fund Assets
2018/2019
I. Value of fund assets at the start of the financial year EUR 2,289,461,649,82
1. Inflow/outflow of funds (net) EUR -499,878,527,00
a) Proceeds received from sales of units EUR 238,912,137,00
b) Payments for redemption of units EUR -738,790,664,00
2. Income adjustment/cost compensation EUR 29,912,713,93
3. Result for the financial year EUR -66,959,141,64
of which unrealised gains EUR -172,600,655,86
of which unrealised losses EUR -67,048,190,52
II. Value of fund assets at the end of the financial year EUR 1,752,536,695,11
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Annual Report for iShares MDAX® UCITS ETF (DE)
for the period under review from 01/05/2018 to 30/04/2019
Use of income from the investment fund
Calculation of reinvestment (total and per unit)
Total Per unit
I. Available for reinvestment EUR 241,924,586,96 30,62
1. Realised net income for the financial year EUR 172,689,704,74 21,86
2. Transfer from investment fund assets EUR 69,234,882,22 8,76
3. Tax deduction amount made available EUR 0,00 0,00
II. Reinvestment EUR 241,924,586,96 30,62
Comparative overview of the last three financial years
Fund assets at the end of the Financial year financial year Unit value
2018/2019 EUR 1,752,536,695,11 221,84
2017/2018 EUR 2,289,461,649,82 222,71
2016/2017 EUR 2,164,887,964,20 214,77
2015/2016 EUR 1,605,089,382,23 177,36
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Annual Report for iShares MDAX® UCITS ETF (DE)
for the period under review from 01/05/2018 to 30/04/2019
Notes
Information pursuant to the German Derivatives Ordinance [Derivateverordnung, DerivateV]:
Information where derivatives are employed pursuant to Article 37 Para. 1 DerivateV:
Level of exposure through derivatives: EUR 651,109,25
Counterparty to derivatives transactions:
CREDIT SUISSE SECURITIES (EUROPE) LIMITED
Market value of securities in EUR
Total sum in connection with third-party derivatives for collateral: EUR 0,00
Pursuant to the Derivatives Ordinance, the utilisation of the market risk ceiling for this investment fund was calculated in accordance with the simple approach.
Information where securities loans are employed pursuant to Article 37 Para. 2 DerivateV:
Level of exposure through securities loans: EUR 20,064,114,63
Counterparty to securities loans:
GOLDMAN SACHS INTERNATIONAL FINANCE
Market value of securities in EUR
Total value of collateral provided for securities loans: EUR 21,982,868,52
of which:
Bonds 7,734,421,43
Shares 14,248,447,09
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Annual Report for iShares MDAX® UCITS ETF (DE)
for the period under review from 01/05/2018 to 30/04/2019
Notes
Other information
Number of fund units in circulation and value of a fund unit on the reporting date pursuant to Article 16 Para. 1 No. 1 of the German Capital Investment Accounting and Valuation Ordinance (KARBV)
Unit value EUR 221,84
Units in circulation Units 7,900,000
Information on the valuation process for assets pursuant to Article 16 Para. 1 No. 2 KARBV
Security prices and market prices
The fund assets are valued on the basis of the following market prices:
Derivatives: Closing prices on the respective valuation dates
All securities: Closing prices on the respective valuation dates
The valuation of assets generally took place during the financial year and at the balance sheet date on the basis of the last traded stock exchange price. Assets not admitted for trading on stock exchanges nor admitted to another regulated market or included in such market, or for which no tradable value is available, are valued at current market values, which shall be assessed with due care using appropriate valuation models and taking into consideration current market conditions.
Derivatives admitted for trading on a stock exchange or another regulated market are valued at the closing price on the relevant valuation date.
Money in bank accounts and existing receivables are valued at their current nominal value. Existing liabilities are reported at the amounts payable.
Exchange Rate(s) or Conversion Factor(s) (bulk quoting) as at 30/04/2019
South African rand (ZAR) 16,06664 = 1 euro (EUR)
Market key
a) Futures exchanges
EURX European Exchange (EUREX)
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Annual Report for iShares MDAX® UCITS ETF (DE)
for the period under review from 01/05/2018 to 30/04/2019
Information on transparency and the total expense ratio (TER) pursuant to Article 16 Para. 1 No. 3 KARBV
Total expense ratio pursuant to Article 101 Para. 2 of the German Investment Code (KAGB): 0.51%.
The total expense ratio expresses all costs and payments (not including transaction costs) borne by the investment fund during the year in relation to the
average net asset value of the investment fund’s assets.
A fee of 0.0282% p.a. of average fund assets was also incurred due to additional income from securities lending transactions.
Performance-related or a supplementary management fee pursuant to Article 16 Para. 1 No. 3 a) of the German Capital Investment Accounting
and Valuation Ordinance (“KARBV”) a) Fixed fee from lending income: EUR 449,040,11
In accordance with the terms and conditions of investment, a fixed fee of 0.50% p.a. based on the average net asset value and payable to the investment management company has been agreed for the investment fund. This fixed fee covers services rendered by the company, in particular the expenses of the depository, costs of legally required printing, mailings and publications associated with the investment fund, and for the auditing of the annual report. Of this amount, 0.0086% p.a. is due to the depository based on the average net asset value, and 0.0923% p.a. to third parties (printing and publication expenses, auditing and miscellaneous costs). The company does not pay any fees to brokers.
The following expenses are not included in the fixed fee:
a) Expenses resulting from the purchase and sale of assets (transaction costs);
b) Customary bank custody fees, including the customary bank charges for the custody of foreign securities abroad and related taxes, if applicable;
c) Expenses related to day-to-day account management;
d) Expenses incurred in the assertion and enforcement of the legal claims of the investment fund;
e) Expenses for providing information to investors of the investment fund by means of a durable medium, with the exception of expenses for providing
information in the case of fund mergers.
Details of the fee structure are provided in the current sales prospectus.
Ex penses paid and repayments received pursuant to Section 16 Para. 1 No. 3c) KARBV
In the reporting period 01/05/2018 to 30/04/2019, the investment management company BlackRock Asset Management Deutschland AG received no repayment of fees or reimbursement of expenses paid from the investment fund to the depository or to third parties for the investment fund iShares ®
MDAX UCITS ETF (DE).
Information concerning other income and other expenses pursuant to Section 16 Para. 1 No. 3e) KARBV
Other income amounting to EUR 118,676.96 is broken down as follows:
a) Compensation payments: EUR 118,676,96
Other expenses amounting to EUR 5,089,869.89 are broken down as follows:
a) Bank custody fees: EUR 183,857,15
b) Deduction of domestic capital gains tax: EUR 4,856,110,16
b) Other expenditure: EUR 49,902,58
Information concerning transaction costs pursuant to Section 16 Para. 1 No. 3f) KARBV
The transaction costs pursuant to Article 16 Para. 1 No. 3 f) of the KARBV paid during the reporting period totalled EUR 14,896.91.
Transaction costs take into account all costs that were separately recognised or invoiced for the account of the investment fund and that are in direct
connection with the purchase or sale of assets.
The share of the securities transactions executed during the reporting period for account of the investment fund through brokers that are closely affiliated
com panies and persons was 0.00%. Their total amount was EUR 0.00.
Index fund information pursuant to Article 16 Para. 2 KARBV
Tracking error level at the end of the reporting period pursuant to Section 16 Para. 2 No. 1 KARBV 0.18 percentage points
Annual tracking difference level -0.18 percentage points
The MDAX® performance index recorded a performance of -0.21% in the reporting period. Taking into account costs, distributions and taxes, iShares MDAX® UCITS ETF (DE) recorded a performance of -0.39% during the same period.
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Annual Report for iShares MDAX® UCITS ETF (DE)
for the period under review from 01/05/2018 to 30/04/2019
Information on staff remuneration pursuant to Section 101 Para. 4 KAGB
The below disclosures are made in respect of the remuneration policies of the BlackRock Group (“BlackRock”), as they apply to BlackRock Asset Management Deutschland AG (the “Manager”). The disclosures are made in accordance with Directive 2009/65/EC on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (“UCITS”), as amended, including in particular by Directive 2014/91/EU of the European Parliament and of the Council of 23 July 2014, (the “Directive”), and the “Guidelines on sound remuneration policies under the UCITS Directive and AIFMD” issued by the European Securities and Markets Authority.
BlackRock’s UCITS Remuneration Policy (the “UCITS Remuneration Policy”) will apply to the EEA entities within the BlackRock group authorised as a manager of UCITS funds in accordance with the Directive, and will ensure compliance with the requirements of Article 14b of the Directive.
The Manager has adopted the UCITS Remuneration Policy, a summary of which is set out below.
There were no material changes to the established remuneration policy.
The annual review did not reveal any anomalies.
Role of the Remuneration Committees
The regulatory remuneration structure of BlackRock EMEA comprises several stages, including (a) the Management Development and Compensation Committee (“MDCC”) (which consists of the global and independent Compensation Committee for BlackRock, Inc. and all its subsidiaries, including the Management Board) and (b) the Board of Directors of BlackRock, Inc. (the “Board of Directors”). These bodies are responsible for the determination of the Manager’s remuneration policies. a) MDCC
The MDCC’s primary purposes include:
• to provide oversight of: - BlackRock executives’ compensation programs; - BlackRock employee benefit plans; and - any other compensation plans which may be occasionally established by BlackRock, as the MDCC’s manager; • the review and consideration of the compensation performance and analysis in the annual BlackRock, Inc. Proxy Statement with senior management and approval of the MDCC report to be included in the Proxy Statement; • the review, assessment and preparation of reports and recommendations to the Board of Directors of BlackRock, Inc. (“the BlackRock, Inc. Board of Directors”) in accordance with talent development and succession planning, with a focus on Corporate Governance Performance recognition and succession at the highest management levels; and • to act as a compensation committee for BlackRock companies based in EMEA, in accordance with applicable UK and European rules and regulations.
The MDCC directly retains its own independent compensation consultant, Semler Brossy Consulting Group LLC, which has no relationship with BlackRock, Inc. or the BlackRock, Inc. Board that would interfere with its ability to provide independent advice to the MDCC on compensation matters.
The BlackRock, Inc. Board has determined that all of the members of the MDCC are “independent” within the meaning of the listing standards of the New York Stock Exchange (NYSE), which require that each member meet a “non-employee director” standard. The MDCC held 10 meetings during 2018. The MDCC charter is available in English on BlackRock, Inc.’s website (www.blackrock.com).
With regular reviews, the MDCC continues to be satisfied with BlackRock’s compensation policy and approach. b) The Board of Directors
The Board of Directors has the task of ensuring compliance with the UCITS compensation guidelines applicable to the Management Board and all identified employees.
The Board of Directors (by means of independent reviews of the relevant oversight functions) continues to be satisfied with the implementation of the UCITS fee guidelines in its application to the Board and its identified employees.
Decision-making process
Compensation decisions for employees are made once a year in January following the end of the performance year. This timing allows full-year financial results to be considered along with other non-financial goals and objectives. Although the framework for compensation decision-making is tied to financial performance, significant discretion is used to determine individual compensation based on achievement of strategic and operating results and other considerations such as management and leadership capabilities.
No set formulas are established and no fixed benchmarks are used in determining annual incentive awards. In determining specific individual compensation amounts, a number of factors are considered including non-financial goals and objectives and overall financial and investment performance. These results are viewed in the aggregate without any specific weighting, and there is no direct correlation between any particular performance measure and the resulting annual incentive award. The variable remuneration granted to one or more persons for a given performance year may also be zero.
Annual incentive awards are generated from a bonus pool.
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Annual Report for iShares MDAX® UCITS ETF (DE)
for the period under review from 01/05/2018 to 30/04/2019
The size of the projected bonus pool, including cash and equity awards, is reviewed throughout the year by the MDCC and the final total bonus pool is approved after year-end. As part of this review, the MDCC receives actual and projected financial information over the course of the year as well as final year-end information. The financial information that the MDCC receives and considers includes the current year projected income statement and other financial measures compared with prior year results and the current year budget. The MDCC additionally reviews other metrics of Blackrock’s financial performance (e.g., net inflows of AUM and investment performance) as well as information regarding market conditions and competitive compensation levels.
The MDCC regularly considers management’s recommendation as to the percentage of pre-incentive operating income that will be accrued and reflected as a compensation expense throughout the year for the cash portion of the total annual bonus pool (the “accrual rate”). The accrual rate for the cash portion of the total annual bonus pool may be modified by the MDCC during the year based on its review of the financial information described above. The MDCC does not apply any particular weighting or formula to the information it considers when determining the size of the total bonus pool or the accruals made for the cash portion of the total bonus pool.
Following the end of the performance year, the MDCC approves the final bonus pool amount.
As part of the year-end review process the Operational Risk and Regulatory Compliance departments report to the Committee on any activities, incidents or events that warrant consideration in making compensation decisions.
Individuals are not involved in setting their own remuneration.
Control functions
Each of the control functions (Enterprise Risk, Legal & Compliance, and Internal Audit) has its own organisational structure, which is independent of the business units. The directors of each control function are either members of the Global Executive Committee or BlackRock’s global governing body or have a reporting obligation to the Board of Directors of BlackRock Group Limited, the parent company of all BlackRock entities overseen in EMEA, including the Management Board.
Functional bonus pools are determined with reference to the performance of each individual function. The remuneration of the senior members of control functions is directly overseen by the Committee.
Link between pay and performance
There is a clear and well defined pay-for-performance philosophy and compensation programmes which are designed to meet the key objectives as detailed below:
• distributing BlackRock’s results appropriately among shareholders and employees; • attracting, retaining and motivating employees capable of making significant contributions to the long-term success of the business; • aligning the interests of senior employees with those of shareholders by awarding BlackRock, Inc. stock as a significant part of both annual and long- term incentive awards; • controlling fixed costs by ensuring that compensation expense varies with profitability; • linking a significant portion of an employee’s total compensation to the financial and operational performance of the business as well as its common stock performance; and • discouraging excessive risk-taking; and • ensuring that customer interests are not negatively impacted by compensation in the short, medium and/or long term.
Driving a high-performance culture is dependent on the ability to measure performance against objectives, values and behaviours in a clear and consistent way. Managers use a 5-point rating scale to provide an overall assessment of an employee’s performance, and employees also provide a self- evaluation. The overall, final rating is reconciled during each employee’s performance appraisal. Employees are assessed on the manner in which performance is attained as well as the absolute performance itself.
In keeping with the pay-for-performance philosophy, ratings are used to differentiate and reward individual performance – but do not pre-determine compensation outcomes. Compensation decisions remain discretionary and are made as part of the year-end compensation process.
When setting remuneration levels other factors are considered, as well as individual performance, which may include:
• the performance of the Manager, the funds managed by the Manager and/or the relevant functional department; • factors relevant to an employee individually; relationships with clients and colleagues; teamwork; skills; any conduct issues; and, subject to any applicable policy, the impact that any relevant leave of absence may have on contribution to the business; • the management of risk within the risk profiles appropriate for BlackRock’s clients; • strategic business needs, including intentions regarding retention; • market intelligence; and • criticality to business.
A primary product tool is risk management and, while employees are compensated for strong performance in their management of client assets, they are required to manage risk within the risk profiles appropriate for their clients. Therefore, employees are not rewarded for engaging in high-risk transactions outside of established parameters. Compensation practices do not provide undue incentives for short-term planning or short-term financial rewards, do not reward unreasonable risk and provide a reasonable balance between the many and substantial risks inherent within the business of investment management, risk management and advisory services.
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Annual Report for iShares MDAX® UCITS ETF (DE)
for the period under review from 01/05/2018 to 30/04/2019
The compensation model includes a basic salary, which is contractual, and a discretionary bonus scheme.
BlackRock uses an annual bonus system at its own discretion. Although all employees are eligible to be considered for a bonus, there is no contractual obligation to make any award to an employee under the discretionary bonus scheme. In exercising discretion to award a discretionary bonus, the factors listed above (under the heading “Link between pay and performance”) may be taken into account in addition to any other matters which become relevant to the exercise of discretion in the course of the performance year.
Discretionary bonus awards for all employees, including executive officers, are subject to a guideline that determines the portion paid in cash and the portion paid in stock are subject to additional vesting/clawback conditions. The number of shares granted will continue to be adjusted during the vesting period, due to the change in the share price of BlackRock, Inc. For higher annual payments, a larger proportion will be paid in shares. The MDCC adopted this approach in 2006 to substantially increase the retention value and shareholder alignment of the compensation package for eligible employees, including the executive officers. The portion deferred into stock vests in equal instalments over the three years following grant.
In addition to the annual discretionary bonus described above, equity awards from the “Partner Plan” and the “Targeted Equity Award Plan” will be made to select senior executives to better link with future corporate results. These long-term incentive awards have been established individually to provide meaningful incentives for continued performance over a multi-year period in recognition of the scope of the individual’s role, business expertise and leadership skills.
Selected senior leaders are eligible to receive performance-adjusted equity-based awards from the “BlackRock Performance Incentive Plan” (“BPIP”). Awards made from the BPIP have a three-year performance period based on a measurement of the adjusted operating margin* and organic revenue growth**. The pay-out amount will be determined based on BlackRock’s achievement relative to target financial results at the conclusion of the performance period. The maximum number of shares that can be earned is 165% of the award in those situations where both metrics achieve pre- determined financial targets. No shares will be earned where BlackRock’s financial performance in both of the above metrics is below a pre-determined performance threshold. These metrics have been selected as key measures of shareholder value which endure over market cycles.
A limited number of investment professionals have a portion of their annual discretionary bonus (as described above) awarded as deferred cash that notionally tracks investment in selected products managed by the relevant employee. The intention of these awards is to align investment professionals with the investment returns of the products they manage through the deferral of compensation into those products. Clients and external evaluators have increasingly viewed more favourably those products where key investors have “skin in the game” through significant personal investments.
Identified employees
The UCITS Remuneration Policy sets out the process that will be applied to identify staff as identified employees. being categories of staff of the Manager, including senior management, risk takers, control functions and any employee receiving total remuneration that takes them into the same remuneration bracket as senior management and risk takers, whose professional activities have a material impact on the risk profiles of the Manager or of the funds it manages.
The list of Identified Staff will be subject to regular review, being formally reviewed in the event of, but not limited to:
• organisational changes; • new business initiatives; • changes to the lists of functions with significant influence; • changes to the job description; and • changes to the regulatory guidelines.
Numerical disclosure of the fee
The Manager is obliged, according to the Directive, to disclose numerical information on the remuneration. These disclosures are made in line with BlackRock’s interpretation of currently available regulatory guidance on quantitative remuneration disclosures. As market or regulatory practice develops BlackRock may consider it appropriate to make changes to the way in which quantitative remuneration disclosures are calculated. Where such changes are made, this may result in disclosures in relation to a fund not being comparable to the disclosures made in the prior year, or in relation to other BlackRock fund disclosures in that same year.
Disclosures are provided in relation to (a) the staff of the Manager; (b) Board members; and (c) staff who have the ability to materially affect the risk profile of the Manager or the Fund (including persons who provide services for a manager by virtue of their secondment by their employer, even though they are not directly employed for the manager or in the manager’s company).
All individuals included in the aggregated figures disclosed are rewarded in line with BlackRock’s remuneration policy for their responsibilities across the relevant BlackRock business area. As all individuals have a number of areas of responsibilities, only the portion of remuneration for those individuals’ services attributable to the Manager’s UCITS activities is included in the aggregate figures disclosed.
———————————————————————————————————————————————————————————————————— * Adjusted operating margin: As reported in BlackRock, Inc.’s external filings, this reflects adjusted operating income divided by total revenue net of distribution and servicing expenses and amortisation of deferred sales commission. ** Organic revenue growth: Equal to net new base fees plus net new Aladdin revenue generated in the year (in dollars).
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Annual Report for iShares MDAX® UCITS ETF (DE)
for the period under review from 01/05/2018 to 30/04/2019
Members of staff and senior management of the Manager typically provide both UCITS and non-UCITS related services in respect of multiple funds, clients and functions of the Manager and across the broader BlackRock group. However, the figures disclosed are a sum of each individual’s portion of remuneration attributable to the Manager according to an objective apportionment methodology which acknowledges the multiple-service nature of the Manager. Accordingly the figures are not representative of any individual’s actual remuneration or their remuneration structure.
The amount of the total remuneration awarded by the Manager to its staff which has been attributed to the Manager’s UCITS activities in respect of the Manager’s financial year ending 31 December 2018 is EUR 1.8 million. This figure is comprised of fixed remuneration of EUR 0.9 million and variable remuneration of EUR 0.9 million. According to the regulations described above this remuneration was made to a total of 19 employees.
The total remuneration paid by the Manager to the Management Board for the Manager’s UCITS business in respect of the Manager’s financial year ended 31 December 2018 was EUR 1.0 million, and that to those employees whose activities have a major impact on the risk profile of the Manager or fund was EUR 0.3 million.
Further information necessary for understanding the report pursuant to Section 7 No. 9 d) KARBV
Explanation of the calculation of net change in unrealised gains and losses
Determination of net change in unrealised gains and losses takes place by means of comparing, in each financial year, the valuations of assets included in the unit price with the relevant historical purchase prices, the level of the positive differences in the sum of unrealised gains included, the level of the negative differences in the sum of unrealised losses included and by determining the net changes from a comparison of the sum totals at the end of the financial year with those at the beginning.
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Annual Report for iShares MDAX® UCITS ETF (DE)
for the period under review from 01/05/2018 to 30/04/2019
Notes
Additional notes in accordance with Regulation (EU) 2015/2365 on securities financing transactions
Securities lending
Assets used
Absolute EUR 20,064,114.63
In % of fund assets 1,14
Ten largest counterparties (descending)
Name GOLDMAN SACHS INTERNATIONAL FINANCE
Gross volume of open transactions EUR 20,064,114.63
Country of residence United Kingdom (UK)
Type(s) of settlement and clearing (e.g. bilateral, trilateral, CCP)
Wertpapierleihekontrahenten UniCredit Bank AG, London branch and Credit Suisse Securities (Europe) Ltd are subject to the bilateral model with BlackRock. The securities lending transactions and the associated collateralisation with the counterparties Goldman Sachs International and Morgan Stanley Co International PLC are carried out by an agent (tri-party model).
Transactions broken down by remaining maturity (absolute amounts)
Unlimited EUR 20,064,114.63
Type(s) and quality(ies) of collateral received
Type(s) of collateral received
Bonds EUR 7,734,421.43
Shares EUR 14,248,447.09
Quality(ies) of collateral received
The investment management company currently accepts the following assets in particular as collateral for securities lending transactions:
• Government bonds with a maximum maturity of 10 years from the following countries: Austria, Belgium, Denmark, Finland, France, Germany, the Netherlands, Norway, Sweden, Switzerland and the UK Quality • Equities on the following indices: AEX Index (Netherlands), ATX index (Austria), BEL 20 Index (Belgium), CAC All Share Index (France), CDAX Index (Germany), FTSE All Share Index (UK), FTSE MIB Index (Italy), HEX 25 Index (Finland), Madrid General Index (Spain), OMX Copenhagen 20 Index (Denmark), OMX Stockholm 30 Index (Sweden), OBX Stock Index (Norway), PSI 20 Index (Portugal), SPI.
Currency(ies) of collateral received
CHF, EUR, GBP
Collateral broken down by remaining maturity (absolute amounts)
Unlimited EUR 21,982,868.52
Income and cost shares
Fund
Absolute income share EUR 1,197,440.12
Income share as % of gross income 62,50
Absolute cost share EUR 449,040.11
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Annual Report for iShares MDAX® UCITS ETF (DE)
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Notes
Additional notes in accordance with Regulation (EU) 2015/2365 on securities financing transactions
Loaned securities as % of all loanable fund assets
1,20
Ten largest collateral issuers based on all security financing transactions and total return
swaps
Name Great Britain and Northern Ireland, United Kingdom of
Volume of collateral received (absolute) EUR 3,876,758.54
Name Netherlands, Kingdom of
Volume of collateral received (absolute) EUR 3,857,662.89
Name Roche Holding AG
Volume of collateral received (absolute) EUR 2,042,942.91
Name ASML Holding N.V.
Volume of collateral received (absolute) EUR 2,037,414.74
Name Total S.A.
Volume of collateral received (absolute) EUR 2,030,201.91
Name Nokia Oyj
Volume of collateral received (absolute) EUR 1,997,118.85
Name Ipsen S.A.
Volume of collateral received (absolute) EUR 1,755,256.50
Name Swisscom AG
Volume of collateral received (absolute) EUR 1,711,028.24
Name Koninklijke Ahold Delhaize N.V.
Volume of collateral received (absolute) EUR 975,206.78
Name Seb S.A.
Volume of collateral received (absolute) EUR 889,066.00
Munich, 19 August 2019 BlackRock Asset Management Deutschland AG
Peter Scharl Harald Klug
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INDEPENDANT AUDITOR’S REPORT
To BlackRock Asset Management Deutschland AG, Munich
Opinion
We have audited the annual report of the investment fund iShares MDAX® UCITS ETF (DE) consisting of the Activity Report for the financial year 1 May 2018 to 30 April 2019, the Statement of Assets and Liabilities and the Statement of Net Assets as at 30 April 2019, the Profit and Loss Account, the Use of Income Statement, the Statement of Change in Fund Assets for the financial year 1 May 2018 to 30 April 2019 and the comparative overview of the last three financial years, the statement of transactions concluded during the period under review that no longer appear in the Statement of Net Assets, and the Notes.
In our opinion, based on the findings obtained during the audit, the attached annual report complies in all material matters with the provisions of the German Investment Code (KAGB) and the relevant European regulations and, in compliance with these provisions, makes it possible to form a comprehensive view of the actual condition of and changes to the investment fund.
Basis for the auditor’s opinion
We conducted our audit of the annual report in accordance with Article 102 of the German Investment Code (KAGB) and taking into consideration the German generally accepted principles for the proper audit of financial statements issued by the Institute of Public Auditors in Germany (IDW). Our responsibility under these regulations and principles is described in further detail in our report in the section “Responsibility of the auditor for the audit of the annual report”. We are independent of BlackRock Asset Management Deutschland AG, Munich, in compliance with German commercial and professional law, and have fulfilled our other German professional obligations in compliance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to serve as a basis for our opinion of the annual report.
Other information
The legal representatives are responsible for the other information. The other information includes the Notice and Note on Licences, the Additional Information for Investors in Austria, France, the United Kingdom and Switzerland, the Report of the Management Board and the information on the Management Company and Depository.
Our audit opinion does not extend to the other information and accordingly, we do not issue an audit opinion or any other form of audit conclusion in this regard.
In connection with our audit, we have the responsibility to read the other information and to assess whether the other information
• shows any material discrepancies from our understanding obtained during the course of the audit of the annual report of the investment fund iShares MDAX® UCITS ETF (DE) or
• appears to be materially misstated in any other way.
Responsibility of the legal representatives for the annual report
The legal representatives of BlackRock Asset Management Deutschland AG, Munich are responsible for the preparation of the annual report, which must comply with the provisions of the German Investment Code (KAGB) and the relevant European regulations in all material matters, and for ensuring that, in accordance with these provisions, the annual report makes it possible to form a comprehensive view of the actual condition of and changes to the investment fund. In addition, the legal representatives are responsible for the internal controls that they have identified as necessary in accordance with these provisions in order to make it possible for the annual report to be prepared free of material – intended or unintended – misstatements.
When preparing the annual report, the legal representatives are responsible for incorporating events, decisions and factors that could have a significant impact on the further development of the investment fund into the reporting. This means, among other things, that the legal representatives must, in the preparation of the annual report, assess the continued management of the investment fund by BlackRock Asset Management Deutschland AG, Munich and are responsible for indicating facts regarding the continued management of the investment fund if relevant.
Responsibility of the auditor for the audit of the annual report
Our objective is to obtain sufficient assurance as to whether the annual report as a whole is free from material – intended or unintended – misstatements, and to issue a report stating our audit opinion on the annual report.
Sufficient assurance is a high degree of assurance, but it does not guarantee that an audit conducted in accordance with Section 102 KAGB, taking into consideration the German generally accepted standards for the proper audit of financial statements issued by the Institute of Public Auditors in Germany (IDW), will always discover a material misstatement. Misstatements may result from violations or inaccuracies and are considered to be material if it could reasonably be expected that they would, individually or in total, influence the economic decisions that the addressees make on the basis of this annual report.
During the audit, we exercise our professional discretion and maintain a critical stance. In addition:
• We identify and assess the risks of material – intended or unintended – misstatements in the annual report, plan and conduct audit procedures in response to these risks and obtain audit evidence that is sufficient and appropriate to serve as a basis for our audit opinion. The risk that material misstatements are not identified is greater for violations than for inaccuracies, as violations may involve fraudulent collusion, forgery, intentional omissions, misrepresentation, or the abrogation of internal controls.
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Annual Report for iShares MDAX® UCITS ETF (DE)
for the period under review from 01/05/2018 to 30/04/2019
• We gain an understanding of the internal control system relevant to the audit of the annual report in order to plan audit procedures that are appropriate in the given circumstances, but not with the objective of expressing an audit opinion on the effectiveness of the internal control system of BlackRock Asset Management Deutschland AG, Munich.
• We assess the appropriateness of the accounting methods applied by the legal representatives of BlackRock Asset Management Deutschland AG, Munich in the preparation of the annual report, as well as the justifiability of the legal representatives’ estimated values and related information presented.
• We draw conclusions based on the audit evidence obtained as to whether there is significant uncertainty in relation to events or circumstances that could cast significant doubts on the continuation of the investment fund by BlackRock Asset Management Germany AG, Munich. If we conclude that there is a material uncertainty, we are obliged to draw attention to the relevant information in the annual report in our report or, if this information is not sufficient, to modify our audit opinion. We draw our conclusions on the basis of the audit evidence obtained up to the date of our report. Further events or circumstances may, however, lead to BlackRock Asset Management Deutschland AG, Munich no longer managing the investment fund.
• We assess the overall presentation, structure and content of the annual report, including the disclosures and whether the annual report represents the underlying transactions and events in such a way that the annual report, in compliance with the provisions of the German KAGB and the relevant European regulations, makes it possible to form a comprehensive view of the actual condition of and changes to the investment fund.
We discuss with the persons responsible for monitoring, among other things, the planned scope and timing of the audit and significant findings of the audit, including any deficiencies in the internal control system that we identify during our audit.
Munich, 20 August 2019
Deloitte GmbH Wirtschaftsprüfungsgesellschaft
(René Rumpelt) (Michael Buchner) Auditor Auditor
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Management Company and Depository
Management Company BlackRock Asset Management Deutschland AG Lenbachplatz 1 80333 Munich, Germany
Share capital as at 31/12/2018: EUR 5 million
Liable equity as at 31/12/2018: EUR 43.50 million
Shareholder
BlackRock Investment Management (UK) Limited
Management
Dirk Schmitz Chairman of the Management Board Frankfurt
Alexander Mertz* Member of the Management Board Munich
Harald Klug Member of the Management Board Munich
Peter Scharl Member of the Management Board Munich
Supervisory Board
Friedrich Merz (Chairman) Lawyer Düsseldorf
Stephen Cohen BlackRock, Managing Director, Head of Sales EMEA iShares London, UK
Stacey Mullin BlackRock, Managing Director, COO EMEA London, UK
Depository
State Street Bank International GmbH Brienner Straße 59
80333 Munich, Germany
Auditor
Deloitte GmbH Wirtschaftsprüfungsgesellschaft Rosenheimer Platz 4 81669 Munich, Germany
(*) until 08/03/2019
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BlackRock Asset Management Deutschland AG Lenbachplatz 1 D-80333 Munich, Germany
Tel: +49 (0) 89 42729 - 5858
www.iShares.de