Interim Report and Unaudited Financial Statements
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Interim report and unaudited financial statements BlackRock Investment Funds Switzerland Umbrella Fund under Swiss Law of the “Other Funds for Traditional Investments” Type For the financial period ended 31 January 2020 BLACKROCK INVESTMENT FUNDS SWITZERLAND CONTENTS Overview General information 2 Performance Sub-fund performance 7 Financial Statements Statement of net assets 12 Changes in the fund’s net assets 15 Changes in number of units outstanding 17 Net assets attributable to redeemable unitholders 21 Profit and loss account 24 Notes to the annual report 27 Composition of portfolio and changes in holdings 35 Additional Information Disclaimers 267 This interim report and unaudited financial statements (the “Report and Accounts”) may be translated into other languages. Any such translations shall only contain the same information and have the same meaning as the German language Report and Accounts. To the extent that if there is any inconsistency between the German language interim report and the interim report in another language, the German language interim report will prevail, except to the extent (and only to the extent) that it is required by law of any jurisdiction where the shares are sold, that in an action based upon disclosure in an interim report in a language other than German, the language of the interim report on which such action is based shall prevail. Any disputes as to the terms of the interim report, regardless of the language of the interim report, shall be governed by and construed in accordance with the laws of Switzerland. BLACKROCK INVESTMENT FUNDS SWITZERLAND INTERIM REPORT [1] BLACKROCK INVESTMENT FUNDS SWITZERLAND GENERAL INFORMATION Fund Management Company Paying Agent (Switzerland) BlackRock Asset Management Schweiz AG State Street Bank International GmbH, Munich, Zurich Branch Bahnhofstrasse 39 Beethovenstrasse 19 CH-8001 Zurich CH-8027 Zurich Board of Directors1,2 Auditor David Blumer, Chairman Deloitte AG Barry O’Dwyer, Vice-Chairman General-Guisan-Quai 38 Dr. Mirjam Staub-Bisang P.O. Box 2232 CH-8022 Zurich 1 Effective 31 December 2019, Dr. Susanne Haury von Siebenthal resigned as a member of the Board of Directors. Fund Administrator 2 Effective 31 December 2019, Dr. Peter Athanas resigned as a member of State Street Bank International GmbH, Munich, Zurich Branch the Board of Directors. Beethovenstrasse 19 Executive Committee1,2 CH-8027 Zurich Dr. Mirjam Staub-Bisang, CEO Markus Studer, COO Nathalie von Niederhäusern André Bantli Frank Rosenschon Holger Schmidt Jasmin Djalali Robert Majewski Edward Gordon 1 Effective 31 December 2019, Dr. Michael Burch, resigned as a member of the Executive Committee. 2 Effective 1 January 2020, Markus Studer was appointed as a member of the Executive Committee. Custodian Bank State Street Bank International GmbH, Munich, Zurich Branch Beethovenstrasse 19 CH-8027 Zurich [2] BLACKROCK INVESTMENT FUNDS SWITZERLAND INTERIM REPORT BLACKROCK INVESTMENT FUNDS SWITZERLAND GENERAL INFORMATION (continued) General Investment decisions in respect of the following sub-funds BlackRock Investment Funds Switzerland (“BIFS” or the have been delegated to BlackRock Advisors (UK) Limited, “Fund”) is an umbrella fund under Swiss law of the “Other London, which has sub-delegated these investment decisions funds for traditional investments” type which was established to BlackRock Asset Management Deutschland AG: under the Swiss Collective Investment Schemes Act (“CISA”) of June 23, 2006 and is divided into the following sub-funds: iShares SPI® Equity Index Fund (CH) iShares SMI® Equity Index Fund (CH) a) iShares World ex Switzerland Equity Index Fund (CH) b) iShares World ex Switzerland Small Cap Equity Index The precise duties involved are laid down in an investment Fund (CH) management agreement between BlackRock Asset c) iShares Emerging Markets Equity Index Fund (CH) Management Schweiz AG (the “Fund Management d) BIFS Global ex Switzerland Sovereign Screened CHF Company”) and BlackRock Advisors (UK) Limited London, as Bond Fund well as a sub-investment management agreement between e) iShares SPI® Equity Index Fund (CH) BlackRock Advisors (UK) Limited and BlackRock Asset f) iShares SMI® Equity Index Fund (CH) Management Deutschland AG, Munich. g) iShares SBI AAA-BBB® Bond Index Fund (CH) h) iShares Emerging Markets Bond Index Fund (CH) Delegation of other specific tasks i) iShares Japan Equity Index Fund (CH) The Fund Management Company has delegated parts of the fund administration to State Street Bank International GmbH, Delegation and sub-delegation of investment decisions Munich, Zurich Branch. Investment decisions in respect of the following sub-funds have been delegated to BlackRock Advisors (UK) Limited, A Service Agreement between the Fund Management London: Company and State Street Bank International GmbH, Munich, Zurich Branch details the terms of the delegated tasks as a) iShares World ex Switzerland Equity Index Fund (CH) outlined in the prospectus. b) iShares World ex Switzerland Small Cap Equity Index Fund (CH) c) iShares Emerging Markets Equity Index Fund (CH) d) BIFS Global ex Switzerland Sovereign Screened CHF Bond Fund e) iShares SPI® Equity Index Fund (CH) f) iShares SMI® Equity Index Fund (CH) g) iShares SBI AAA-BBB® Bond Index Fund (CH) h) iShares Emerging Markets Bond Index Fund (CH) i) iShares Japan Equity Index Fund (CH) BLACKROCK INVESTMENT FUNDS SWITZERLAND INTERIM REPORT [3] BLACKROCK INVESTMENT FUNDS SWITZERLAND GENERAL INFORMATION (continued) Total Expense Ratio (TER) Flat fee Total charged Expense Max fee to the Ratio charged to Unit sub-fund (TER) the sub-fund Sub-fund Class Currency % % % iShares World ex Switzerland Equity Index Fund (CH) I1 CHF* CHF 0.15 0.15 1.00 iShares World ex Switzerland Equity Index Fund (CH) X1 CHF CHF 0.02 0.02 0.50 iShares World ex Switzerland Small Cap Equity Index Fund (CH) I CHF* CHF 0.20 0.20 1.00 iShares World ex Switzerland Small Cap Equity Index Fund (CH) I0 CHF CHF 0.20 0.20 1.00 iShares World ex Switzerland Small Cap Equity Index Fund (CH) X0 N CHF CHF 0.03 0.03 0.50 iShares Emerging Markets Equity Index Fund (CH) D CHF CHF 0.25 0.19 1.00 iShares Emerging Markets Equity Index Fund (CH) I CHF CHF 0.20 0.14 1.00 iShares Emerging Markets Equity Index Fund (CH) X N CHF CHF 0.08 0.02 0.50 BIFS Global ex Switzerland Sovereign Screened CHF Bond Fund D CHF CHF 0.25 0.25 1.00 BIFS Global ex Switzerland Sovereign Screened CHF Bond Fund X N CHF CHF 0.05 0.05 0.50 iShares SPI® Equity Index Fund (CH) D CHF CHF 0.13 0.13 1.00 iShares SPI® Equity Index Fund (CH) I CHF CHF 0.10 0.10 1.00 iShares SPI® Equity Index Fund (CH) X CHF CHF 0.03 0.03 0.50 iShares SPI® Equity Index Fund (CH) X N CHF CHF 0.03 0.03 0.50 iShares SPI® Equity Index Fund (CH) Y CHF CHF 0.00 0.00 0.00 iShares SMI® Equity Index Fund (CH) D CHF CHF 0.13 0.13 1.00 iShares SMI® Equity Index Fund (CH) I CHF CHF 0.10 0.10 1.00 iShares SMI® Equity Index Fund (CH) I A-CHF CHF 0.10 0.10 1.00 iShares SMI® Equity Index Fund (CH) X CHF CHF 0.03 0.03 0.50 iShares SBI AAA-BBB® Bond Index Fund (CH) D CHF CHF 0.15 0.15 1.00 iShares SBI AAA-BBB® Bond Index Fund (CH) I CHF CHF 0.12 0.12 1.00 iShares SBI AAA-BBB® Bond Index Fund (CH) Y CHF CHF 0.00 0.00 0.00 iShares Emerging Markets Bond Index Fund (CH) D USD USD 0.30 0.30 1.00 iShares Emerging Markets Bond Index Fund (CH) X USD USD 0.04 0.04 0.50 iShares Emerging Markets Bond Index Fund (CH) X N USD USD 0.04 0.04 0.50 iShares Emerging Markets Bond Index Fund (CH) X NT USD USD 0.04 0.04 0.50 iShares Japan Equity Index Fund (CH) D JPY JPY 0.20 0.20 1.00 iShares Japan Equity Index Fund (CH) I1 CHF CHF 0.15 0.15 1.00 iShares Japan Equity Index Fund (CH) X1 CHF CHF 0.04 0.04 0.50 Total Expense Ratio (“TER”) describes the sum of all periodic costs and commissions that are charged to the sub-fund’s assets. It is expressed retroactively as a percentage of average sub-fund assets and has been calculated in accordance with the Swiss Funds & Asset Management Association (“SFAMA”) guidelines on the calculation and disclosure of the TER of collective investment schemes. Any reimbursements/commissions for client unit holdings from target funds have been credited to the sub-fund and thus reduce the TER. *As this is the initial publication of the TER for this newly launched unit class, the TER has been annualised in accordance with SFAMA guidelines. [4] BLACKROCK INVESTMENT FUNDS SWITZERLAND INTERIM REPORT BLACKROCK INVESTMENT FUNDS SWITZERLAND GENERAL INFORMATION (continued) Tracking error Realised tracking error is the annualised standard deviation of the difference in monthly returns between a sub-fund and its benchmark index. Tracking error shows the consistency of the returns relative to the benchmark index over a defined period of time. Cash management and currency hedging, efficient portfolio management techniques including securities lending and transaction costs from rebalancing can have an impact on tracking error as well as the return differential between a sub-fund and its benchmark index. Importantly, these impacts can be either positive or negative depending on the underlying circumstances. In addition to the above, the sub-funds may also have a tracking error due to withholding tax suffered by the sub-funds on any income received from its investments. The level and quantum of tracking error arising due to withholding taxes depends on various factors such as any reclaims filed on behalf of the sub-funds with various tax authorities, any benefits obtained by the sub-funds under a tax treaty or any securities lending activities carried out by the sub-funds.