Annual report and audited financial statements BlackRock Common Contractual Funds
For the financial period from 6 November 2018 (date of constitution) to 30 April 2019 BlackRock Common Contractual Funds
CONTENTS Page
Overview
General information 1 Background 2
Performance 4 Investment manager’s report
Governance
Statement of the manager’s responsibilities 7 Depositary report to the unitholders 8 Independent auditor’s report 9
Financial statements
Income statement 12 Statement of changes in net assets attributable to redeemable unitholders 13 Balance sheet 14 Notes to the financial statements 15 Schedule of investments 32
Additional information and regulatory disclosures (unaudited)
Schedules of material purchases and sales 70 Transaction with connected persons 71 Transaction costs 71 Soft commissions 71 Global exposure 71 Leverage 71 Report on remuneration 72 Efficient portfolio management 77 Disclaimers 78 BlackRock Common Contractual Funds
OVERVIEW
GENERAL INFORMATION
Directors of the Manager1 Investment Manager William Roberts (Chairman) (British but Irish resident) BlackRock Advisors (UK) Limited Patrick Boylan (British) 12 Throgmorton Avenue Paul Freeman(British) London, EC2N 2DL Justin Mealy (Irish) United Kingdom Barry O’Dywer (Irish) Adele Spillane (Irish) Promoter and Principal Distributor Catherine Woods (Irish) BlackRock Investment Management (UK) Limited 12 Throgmorton Avenue 1All Directors are non-executive London, EC2N 2DL United Kingdom Manager BlackRock Asset Management Ireland Limited Independent Auditors 1st floor Ernst & Young Chartered Accountants 2 Ballsbridge Park EY Building Dublin 4, D04 YW83 Harcourt Centre Ireland Saint Kevin’s Dublin 2, D02 YA40 Currency Hedging Manager Ireland State Street Europe Limited 20 Churchill Place Irish Legal Advisers London, E14 5HJ Matheson United Kingdom 70 Sir John Rogerson’s Quay Dublin 2, D02 R296 Administrator, Registrar and Transfer Agent Ireland Northern Trust International Fund Administration Services (Ireland) Limited Georges Court 54-62 Townsend Street Dublin 2, D02 R156 Ireland
Depositary Northern Trust Fiduciary Services (Ireland) Limited Georges Court 54-62 Townsend Street Dublin 2, D02 R156 Ireland
Tax Services Provider The Northern Trust Company, London Branch 50 Bank Street Canary Wharf London, E145NT United Kingdom
Secretary of the Manager Sanne Corporate Administration Services (Ireland) Limited 4th Floor, 76 Baggot Street Lower Dublin 2, D02 EK81 Ireland
1 BlackRock Common Contractual Funds
OVERVIEW (continued)
BACKGROUND
BlackRock Common Contractual Funds (the “Entity”) is an open-ended common contractual fund (the “CCF”) established on 6 November 2018 as an umbrella fund under the laws of Ireland. The Entity was constituted by the deed of constitution dated 6 November 2018 between BlackRock Asset Management Ireland Limited (the “Manager”) and Northern Trust Fiduciary Services (Ireland) Limited (the “Depositary”). The Entity is authorised as a CCF with segregated liability between the funds pursuant to the laws of Ireland. The Entity is authorised and supervised by the Central Bank of Ireland (“CBI”) pursuant to the provisions of the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 2011 (as amended) (the “UCITS Regulations”).
The Entity is structured as an umbrella fund and comprises one fund (“Fund”) of the Entity. The units of the Fund may be grouped into different classes of units (each a “unit class”). The Fund will represent a separate portfolio of assets and may consist of one or more unit classes. Each unit class may apply different subscription and redemption provisions, charges, fees or brokerage arrangements. The creation of an additional class of units will be notified to the CBI in advance. The portfolio of assets maintained for the Fund will be invested in accordance with the investment objectives and policies applicable to the Fund as set out in the prospectus. The assets of each Fund shall belong exclusively to the Fund and shall not be used to discharge directly or indirectly the liabilities of or claims against any other Fund.
The term “Fund” shall be deemed to mean the Fund of the Entity, or if the context so requires, the Manager or its delegate acting for the accounts of the relevant Fund. The term “BlackRock” and “Investment Manager” are used to represent BlackRock Advisors (UK) Limited. All references to “redeemable units” shall be deemed to mean redeemable participating units when Fund units are classified as financial liabilities. The term “Directors” means the directors of the Manager.
Further details, including the investment objectives and minimum subscription requirements, are set out in the Fund’s prospectus.
Changes to the Entity during the financial period
On 6 November 2018, a prospectus was issued for the Entity to facilitate the launch of the CCF Developed World (ESG Screened) Index Fund and on 6 December 2018, the CCF Developed World (ESG Screened) Index Fund commenced trading with the launch of the X1 EUR Flexible Accumulating unit class.
On 6 November 2018, BlackRock Asset Management Ireland Limited entered agreements with the Administrator, Northern Trust International Fund Administration Services (Ireland) Limited and the Depositary, Northern Trust Fiduciary Services (Ireland) Limited.
On 17 December 2018, the X1 USD Flexible Accumulating unit class was launched for the CCF Developed World (ESG Screened) Index Fund.
On 18 January 2019, the X1 USD Flexible Accumulating unit class was fully redeemed for the CCF Developed World (ESG Screened) Index Fund.
On 1 March 2019, an updated prospectus was issued for the Entity to facilitate the following changes: Inclusion of the X1 EUR (Hedged) Flexible Accumulating unit class for the CCF Developed World (ESG Screened) Index Fund; Update on the potential implications for Brexit; Inclusion of updates in relation to the Benchmark Regulation, EU Regulation 2016/1011; and Updates to the list of stock exchanges and regulated markets.
On 26 April 2019, the X1 EUR (Hedged) Flexible Accumulating unit class was launched for the CCF Developed World (ESG Screened) Index Fund.
2 BlackRock Common Contractual Funds
OVERVIEW (continued)
BACKGROUND (continued)
Potential implications of Brexit
In the referendum held on 23 June 2016 the United Kingdom ("UK") voted to leave the European Union ("EU"). This has been followed by a continued period of political and economic uncertainty, culminating in the resignation of Prime Minister Theresa May, and the election of Boris Johnson as Conservative Party leader and Prime Minister.
BlackRock is implementing a number of steps to prepare for various outcomes, including effecting organisational, governance and operational changes, applying for and receiving licenses and permissions in the EU, and engaging in client communications. Depending on the terms of the UK’s exit from the EU, BlackRock may experience organisational and operational challenges, incur additional costs or face other execution risks in connection with its European operations post-Brexit.
Following the Emergency EU Summit held on 10 April 2019, an agreement was reached to provide an extension for the UK to leave the EU. This extension will only be as long as necessary and no longer than 31 October 2019 unless another extension is agreed. If the withdrawal agreement is ratified before this date, the withdrawal will take place on the first day of the following month.
BlackRock will evaluate the regulatory and political developments as we continue our preparations to ensure we remain well placed to serve our clients regardless of the outcome of Brexit.
Fund details
The Entity had one Fund in operation as at 30 April 2019.
Fund name Benchmark index Investment management approach1 CCF Developed World (ESG MSCI World ex Select Controversies Non-replicating Screened) Index Fund2 Euro Net Index
1Please refer to the Investment Manager’s Report for further information on the meaning of a non-replicating Fund. 2CCF Developed World (ESG Screened) Index Fund launched on 6 December 2018.
3 BlackRock Common Contractual Funds
PERFORMANCE
INVESTMENT MANAGER’S REPORT
Investment objective The investment objective of the Fund is to provide investors with a total return, taking into account both capital and income returns, which reflects the total return of the MSCI World ex Select Controversies Euro Net Index.
Fund performance, tracking difference and tracking error The Fund performance figures are based on the NAV calculated in accordance with the prospectus for the financial period under review with any dividends reinvested. Due to FRS 102 requirements which apply to the financial statements, there may be differences between the NAV per unit as recorded in the financial statements and the NAV per unit calculated in accordance with the prospectus.
Tracking difference is defined as the difference in returns between a fund and its benchmark index.
Realised tracking error is the annualised standard deviation of the difference in monthly returns between a fund and its benchmark index. Tracking error shows the consistency of the returns relative to the benchmark index over a defined period of time.
Anticipated tracking error is based on the expected volatility of differences between the returns of a fund and the returns of its benchmark index.
For non-replicating funds, the investment management approach aims to match the main risk characteristics of the benchmark index by investing in a portfolio that is primarily made up of securities that represent the benchmark index. The objective is to generate a return which is as close as practicable to the total return of the index net of transaction costs and gross of fees and other costs.
Cash management, efficient portfolio management techniques including securities lending, transaction costs from rebalancing and currency hedging can have an impact on tracking difference. Importantly, these impacts can be either positive or negative depending on the underlying circumstances.
In addition to the above, the Fund may also have a tracking difference and tracking error due to withholding tax suffered by the Fund on any income received from its investments. The level and quantum of tracking difference/tracking error arising due to withholding taxes depends on various factors such as any reclaims filed on behalf of the Fund with various tax authorities, any benefits obtained by the Fund under a tax treaty or any securities lending activities carried out by the Fund.
The following table compares the realised Fund performance against the performance of the relevant benchmark index during the financial period ended 30 April 2019. The table also includes an explanation of the tracking difference gross of the total expense ratio (“TER”) for the financial period ended 30 April 2019. It also discloses the anticipated tracking error of the Fund (disclosed in the prospectus on an ex-ante basis) against the actual realised tracking error of the Fund as at 30 April 2019. An explanation of the difference in tracking error is also provided where the tracking error is greater than the anticipated tracking error. The realised tracking error is annualised and calculated using data from the preceding 36 month observation period. Where a Fund has not been trading for 36 months, the annualised tracking error since inception has been presented.
The returns disclosed are the performance returns for the primary unit class for the Fund, net of fees, which has been selected as a representative unit class. The primary unit class represents the class of unit invested in by the majority of investors in the Fund and also takes into account other relevant factors such as the Fund’s base currency. Performance returns for any other unit class can be made available on request. The calculation methodology is based on industry standards.
4 5 REPORT (continued) REPORT The Fund commenced trading during the financial period. Returns are shown from launch date to the end of the financial period and the TER is the effective TER from launch launch from TER effective the is TER the and period financial the of end the to date launch from shown are Returns period. financial the during trading commenced Fund The PERFORMANCE (continued) (continued) PERFORMANCE MANAGER’S INVESTMENT (continued) error tracking and difference tracking performance, Fund an involve investments financial All product. a selecting when consideration of date. end period financial tothe date factor sole the be not should and or performance future Representatives to the guide a of not is any performance or Past Company Management do figures performance The the guaranteed. be cannot amount investment initial your and vary willit from Agent, income the and investment your of value the Therefore, risk. of element Transfer the Subscriptions time. Services, to time from change may taxation of bases and Levels units. Investor of redemption or subscription of time the at levied be from may that fees and charges consider not as well as available accounts unaudited and report interim and are accounts audited and report annual recent which most the which of prospectus, of current the of basis the on only Copies made be may part. integral an form KIIDs Distributors. 1 BlackRock Common Contractual Funds Funds Contractual Common BlackRock BlackRock Common Contractual Funds
PERFORMANCE (continued)
INVESTMENT MANAGER’S REPORT (continued)
Performance and activity Over the four months ending 30 April 2019, the Fund returned 19.03%, tracking its benchmark, the MSCI World ex Select Controversies Euro Net Index, which returned 18.89%.
Market review Developed markets performed strongly over the first quarter of 2019. January's return for the US was the best start to the year since 1987. The rebound was attributed to an oversold bounce, improved expectations for a trade deal with China, and a dovish pivot from the Federal Reserve. The Federal Open Market Committee (the “FOMC”) took a dovish turn in January, stating it was considering winding down the balance sheet reduction and would be “patient” in raising rates. In March, the FOMC said two projected rate hikes had been knocked down to zero and balance sheet reduction would end in September. While US-China talks were ongoing in February, the US administration pressed pause on the tariff rises that had been due to be introduced to $200 billion-worth of Chinese imports. By the end of the quarter there was increased hope both sides were ready to do a deal. February’s State of the Union address focused on trade with China and a programme of spending on infrastructure and made a renewed call for a border wall with Mexico. Eurozone equity markets all advanced but to varying degrees as the recovery in equity market sentiment from 2018 lows occurred despite slowing economic activity across the region. Partially contributing to the bullish sentiment was the European Central Bank’s reaffirmation of accommodative monetary policy and announcement of a new round of targeted longer-term refinancing operations (“TLTROs”). Within the eurozone, Germany underperformed amid continued weakness in the manufacturing and export sectors. Germany’s manufacturing Purchasing Manager’s Index fell from 51.8 in December to 44.1 in March. Declines in industrial production and factory orders also provided headwinds for the eurozone’s largest economy. Amid the weak economic growth, the German 10-year bund yield turned negative for the first time since 2016. Elsewhere in the eurozone, Italy (+16%) outperformed major European countries despite two consecutive quarters of real gross domestic product contraction and political uncertainty as quarter one macro trends were relatively constructive. The UK equity component rallied and contributed the most to EAFE’s (Europe, Australasia and Far East) total return despite ongoing Brexit uncertainty. Though Prime Minister May’s withdrawal agreement was rejected by Parliament three times, the extension of the Brexit deadline from 12 April was viewed as a constructive development that reduced the probability of a “no-deal” Brexit. Coupled with a strong labour market – particularly evident from an unemployment rate of 3.9% and 3.4% year-on-year increase to wages – sterling appreciated +2.5% against the US dollar in the quarter. Additionally, the Bank of England remained on hold throughout the quarter. In APAC, Japan underperformed as uncertainty around US trade protectionism, an upcoming sales-tax hike, and low levels of growth weighed on sentiment. Still, continued monetary support by the Bank of Japan provided global risk-on appetite which benefited the country’s equity market. The Japanese yen fell -3.7% from intra- quarter highs, a tailwind for export names. Elsewhere, Hong Kong rallied +15.9% amid a rebound in mainland Chinese sentiment.
BlackRock Advisors (UK) Limited
May 2019
6
http://www.iaasa.ie/getmedia/b2389013-1cf6-458b-9b8f- a98202dc9c3a/Description_of_auditors_responsibilities_for_audit.pdf.
BlackRock Common Contractual Funds
INCOME STATEMENT For the financial period ended 30 April 2019
CCF Developed World (ESG Screened) Index Note Fund^
2019 USD '000 Operating income 5 8,415 Net gains on financial instruments 7 101,537 Total investment income 109,952
Operating expenses 6 (638) Net operating income 109,314
Finance costs: Other interest expense (7) Total finance costs (7)
Net profit before taxation 109,307
Taxation 8 (430) Net profit after taxation 108,877
Adjustment to align to the valuation methodology as set out in the prospectus 2 501
Increase in net assets attributable to redeemable unitholders 109,378
There are no recognised gains or losses arising during the financial period other than those dealt with in the income statement.
^The Fund launched during the financial period.
The accompanying notes form an integral part of these financial statements.
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STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO REDEEMABLE UNITHOLDERS For the financial period ended 30 April 2019
CCF Developed World (ESG Screened) Index Fund^
2019 USD '000 Net assets at the beginning of the financial period - Increase in net assets attributable to redeemable unitholders 109,378
Unit transactions: Issue of redeemable units 1,669,148 Redemption of redeemable units (859,688) Increase in net assets resulting from unit transactions 809,460
Net assets at the end of the financial period 918,838
^The Fund launched during the financial period.
The accompanying notes form an integral part of these financial statements.
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BlackRock Common Contractual Funds
NOTES TO THE FINANCIAL STATEMENTS
1. General information
The Entity is structured as a common contractual fund and is authorised by the CBI and is governed by the provisions of the UCITS Regulations.
2. Significant accounting policies
2.1 Basis of preparation The financial statements are prepared in accordance with Financial Reporting Standard 102 (“FRS 102”) “The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland” issued by the Financial Reporting Council.
The financial statements are prepared on a going concern basis under the historical cost convention as modified by the revaluation of financial assets and financial liabilities held at fair value through profit or loss.
The Entity has availed of the exemption available to open-ended investment funds that hold a substantial proportion of highly liquid and fair valued investments under Section 7 of FRS 102 and is not presenting a cash flow statement.
The format and certain wordings of the financial statements have been adapted from those contained in Section 3 of FRS 102, so that, in the opinion of the Directors, they more appropriately reflect the nature of the Entity’s business as an investment fund.
All amounts have been rounded to the nearest thousand, unless otherwise indicated.
2.2 Financial instruments The Entity has chosen to implement the recognition and measurement provisions of IAS 39 and only the disclosure requirements of Sections 11 and 12 of FRS 102 as they relate to financial instruments.
2.2.1 Classification The Entity classifies its investments in equity and derivatives as financial assets or financial liabilities at fair value through profit or loss. These financial assets and financial liabilities are classified as held for trading or designated by the Directors at fair value through profit or loss at inception. All the derivatives investments are held for trading purposes. All other financial assets and financial liabilities including cash, receivables and payables are classified at amortised cost using the effective interest method.
2.2.2 Recognition and derecognition The Entity recognises a financial asset or a financial liability when it becomes a party to the contractual provisions of the instrument. Purchases and sales of investments are recognised on the day the trade takes place.
Realised gains and losses on disposals of financial instruments are calculated using the First-In-First-Out (“FIFO”) cost method. For instruments held long, they represent the difference between the initial carrying amount and disposal amount. For instruments held short, they represent the difference between the proceeds received and the opening value. For derivative contracts, they represent the cash payments or receipts made on derivative contracts (excluding those on collateral or margin accounts for such instruments).
Financial assets are derecognised when the rights to receive cash flows from the asset have expired or the risks and rewards of ownership have all been substantially transferred. Financial liabilities are derecognised when the obligation under the liability is discharged, cancelled or expired.
2.2.3 Measurement All financial instruments are initially recognised at fair value.
Financial assets and financial liabilities at fair value through profit or loss are subsequently measured at fair value. Transaction costs on purchases or sales of investments and gains and losses arising from changes in the fair value of financial assets or financial liabilities at fair value through profit or loss are presented in the income statement within ‘Net gains/(losses) on financial assets/liabilities at fair value through profit or loss’, in the period in which they arise.
Financial assets and financial liabilities, other than those classified as at fair value through profit or loss, are subsequently measured at amortised cost.
15 BlackRock Common Contractual Funds
NOTES TO THE FINANCIAL STATEMENTS (continued)
2. Significant accounting policies (continued)
2.2 Financial instruments (continued)
2.2.4 Fair value estimation Fair value is the amount for which an asset could be exchanged, a liability settled or an equity instrument granted could be exchanged, between knowledgeable, willing parties in an arm's length transaction. The estimation of fair value, after initial recognition, is determined as follows:
Investments in equity instruments and exchange traded derivatives which are quoted, listed, traded or dealt on a market or exchange are valued based on quoted market prices which, for the purposes of the financial statements is in line with the valuation methodology prescribed in the Entity’s prospectus. Depending on the nature of the underlying investment, the value taken could be either at the closing price, closing mid-market price or bid price on the relevant market.
Investments in centrally cleared and over-the-counter (“OTC”) derivatives are valued using valuation techniques.
In the case of an investment which is not quoted, listed or dealt on a recognised market, or in respect of which a listed, traded or dealt price or quotation is not available at the time of valuation, the fair value of such investment shall be estimated with care and in good faith by a competent professional person, body, firm or corporation (appointed for such purpose by the Directors in consultation with the Investment Manager and approved for the purpose by the Depositary, and such fair value shall be determined using valuation techniques. The Fund uses a variety of methods and makes assumptions that are based on market conditions existing at each reporting date.
Valuation techniques used for non-standardised financial instruments such as OTC derivatives include those detailed in the fair value hierarchy note, and those used by market participants making the maximum use of market inputs and relying as little as possible on entity-specific inputs.
2.2.5 Financial derivative and other specific instruments
2.2.5.1 Futures contracts A futures contract is a contract, traded on an exchange, to buy or sell a certain underlying instrument at a certain date in the future, at a specified price.
Initial margin deposits are made to relevant brokers upon entering into futures contracts and are included in margin cash.
2.2.5.2 Forward currency contracts A forward currency contract is an agreement, in the OTC market, between two parties to buy or sell a certain underlying currency at a certain date in the future, at a specified price.
2.2.6 Cash Cash in the balance sheet includes cash deposits held on call with banks.
Bank overdrafts are classified as liabilities in the balance sheet.
2.2.7 Margin cash Cash balances held as margin with relevant brokers relating to investments in derivatives at the reporting date are identified on the balance sheet as margin cash.
2.2.8 Redeemable units The Fund classifies redeemable units issued as financial liabilities or equity in accordance with the substance of the contractual terms of the instruments. Redeemable units are measured at the present value of redemption amounts.
16 BlackRock Common Contractual Funds
NOTES TO THE FINANCIAL STATEMENTS (continued)
2. Significant accounting policies (continued)
2.2 Financial instruments (continued)
2.2.8 Redeemable units (continued) The redeemable units are redeemable at the option of the holders and do not meet the conditions set out in Section 22.4 of FRS 102, to be classified as equity and as a result are classified as financial liabilities. The redeemable units are accounted for on the day the trade takes place.
Where duties and charges are applied in the context of a subscription or redemption, they will have an impact on the value of an investment of a subscribing or redeeming investor and as a result are reflected as part of the issue of redeemable units or the redemption of redeemable units in the statement of changes in net assets attributable to redeemable unitholders. Any potential duties and charges are at the discretion of the Directors.
2.3 Foreign currency
2.3.1 Functional and presentation currency Foreign currency items included in the financial statements are measured in the Fund’s functional currency which is US dollar.
The Directors consider that the currency most accurately represent the economic effects of the underlying transactions, events and conditions of the Fund. The Fund’s presentation currency is the same as the functional currency.
2.3.2 Transactions and balances Transactions in foreign currencies are translated into the functional currency of the Fund at the foreign currency exchange rate in effect at the date of the transaction.
Foreign currency assets and liabilities, including investments, are translated at the exchange rate prevailing at the reporting date.
The foreign exchange gain or loss based on the translation of the investments, as well as the gain or loss arising on the translation of other assets and liabilities, is included in the income statement.
2.4 Critical accounting estimates and judgements The preparation of the financial statements in conformity with FRS 102 requires the use of certain critical accounting estimates. It also requires the Directors to exercise its judgement in the process of applying the Entity’s accounting policies. Changes in assumptions may have a significant impact on the financial statements in the period the assumptions changed. The Directors believe that the underlying assumptions are appropriate and that the Entity’s financial statements, therefore, present the Entity’s financial position and its results fairly. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future years if the revision affects both current and future years. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed below.
2.4.1.1 Fair value of OTC derivative financial instruments OTC financial derivative instruments are valued using valuation techniques, as detailed in the fair value hierarchy note to the financial statements. Where valuation techniques (for example, models) are used to determine fair values, they are validated and periodically reviewed and compared to the price provided by an independent pricing service provider, where available.
2.4.1.2 Fair value of financial instruments not quoted in an active market The fair value of such instruments not quoted in an active market may be determined by the Fund using reputable pricing sources or indicative prices from bond/debt market makers. The Fund would exercise judgement and estimates on the quantity and quality of pricing sources used. Broker quotes as obtained from the pricing sources may be indicative and not executable or binding.
17 BlackRock Common Contractual Funds
NOTES TO THE FINANCIAL STATEMENTS (continued)
2. Significant accounting policies (continued)
2.4 Critical accounting estimates and judgements (continued)
2.4.1.3 Fair value of financial instruments with significant unobservable inputs The fair value of such instruments is determined using valuation techniques including inputs not based on market data and where significant entity determined adjustments or assumptions are applied, as detailed in the fair value hierarchy note to the financial statements.
2.5 Dividend income Dividend income is recognised in the income statement when the Fund’s right to receive the payment is established. For quoted equity securities, this is usually the ex-dividend date. For unquoted equity securities, this is usually the date on which the unitholders approve the payment of a dividend. Dividend income is shown gross of any non- recoverable withholding taxes, which are presented separately in the income statement.
2.6 Interest income and expense Interest income and expense for all interest-bearing financial instruments are recognised in the income statement using the effective interest method.
2.7 Fees and expenses Expenses are recognised in the income statement on an accruals basis except for transaction charges relating to the acquisition and realisation of investments which are charged for as incurred.
Expenses directly attributable to a specific class of units are borne directly by such class solely.
2.8 Distributions Distributions are recognised in the income statement as finance costs where units in Fund do not meet the conditions to be classified as equity and as a result are classified as financial liabilities.
The Directors may declare distributions on the units of the class in respect of each financial period. Distributions may be paid out of the Fund’s net income.
Distributions will not be made to the unitholders of the accumulating unit classes. The income and other profits will be accumulated and reinvested in the Fund on behalf of these unitholders.
2.9 Adjustment to align to the valuation methodology as set out in the prospectus Establishment costs are amortised over a period of five years for the purpose of calculating the dealing NAV as detailed in the prospectus. However, FRS 102 requires such costs to be expensed when incurred therefore, for the purposes of the financial statements, any unamortised establishment costs have been recognised in full in the income statement in the period in which they were incurred.
Consequently, the differences described above adjust the carrying amount of the net assets attributable to unitholders and the cumulative differences are included in the ’Adjustment to align to the valuation methodology as set out in the prospectus’ line on the balance sheet.
2.10 Taxation
2.10.1 Current tax Current tax is recognised for the amount of income tax payable in respect of the overseas taxable profit for the current or past reporting periods using the tax rates and laws that that have been enacted or substantively enacted by the reporting date.
2.10.2 Deferred tax A provision for deferred tax payable is recognised in respect of material timing differences that have originated but not reversed at the balance sheet date. A deferred tax asset is not recognised to the extent that the transfer of economic benefits in the future is uncertain. Timing differences are differences between the Fund’s overseas taxable profits and its results as stated in the financial statements that arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements.
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NOTES TO THE FINANCIAL STATEMENTS (continued)
3. Financial risks
The Fund’s investment activities expose it to the various types of risk which are associated with the financial instruments and markets in which it invests. The following information is not intended to be a comprehensive summary of all risks and investors should refer to the prospectus for a more detailed discussion of the risks inherent in investing in the Fund.
3.1 Risk management framework The Directors review quarterly investment performance reports and receive semi-annual presentations from the Investment Manager covering the Entity’s performance and risk profile during the financial period. The Directors have delegated the day-to-day administration of the investment programme to the Investment Manager. The Investment Manager is also responsible for ensuring that the Entity is managed within the terms of its investment guidelines and limits set out in the prospectus. The Directors reserve to themselves the investment performance, product risk monitoring and oversight and the responsibility for the monitoring and oversight of regulatory and operational risk for the Entity. The Directors have appointed a risk manager who has responsibility for the daily risk management process with assistance from key risk management personnel of the Investment Manager, including members of the BlackRock Risk and Quantitative Analysis Group (“RQA Group”) which is a centralised group which performs an independent risk management function. The RQA Group independently identifies, measures and monitors investment risk. The RQA Group tracks the actual risk management practices being deployed across the Fund. By breaking down the components of the process, the RQA Group has the ability to determine if the appropriate risk management processes are in place across the Fund. This captures the risk management tools employed, how the levels of risk are controlled, ensuring risk/return is considered in portfolio construction and reviewing outcomes.
3.2 Market risk Market risk arises mainly from uncertainty about future values of financial instruments influenced by currency, interest rate and price movements. It represents the potential loss the Fund may suffer through holding market positions in the face of market movements.
A key metric used by the RQA Group to measure market risk is Value-at-Risk (“VaR”) which encompasses currency, interest rate and price risk. VaR is a statistical risk measure that estimates the potential portfolio loss from adverse market movements in an ordinary market environment. VaR analysis reflects the interdependencies between risk variables, unlike a traditional sensitivity analysis. There are two preferred methods of using VaR to measure and manage market risk volatility, the relative and the absolute. Under relative VaR, the Fund’s portfolio will not exceed twice the VaR of the reference portfolio. Under absolute VaR, the VaR will not exceed 20% of the Fund’s NAV.
The VaR calculations are based on an adjusted historical simulation model with a confidence level of 99%, a holding period of one day and a historical observation period of not less than one year (250 days). A VaR number is defined at a specified probability and a specified time horizon. A 99% one day VaR means that the expectation is that 99% of the time over a one-day period the Fund will lose no more than this number in percentage terms. Therefore, higher VaR numbers indicate higher risk.
It is noted that the use of VaR methodology has limitations, namely that the use of historical market data as a basis for estimating future events does not encompass all possible scenarios, particularly those that are of an extreme nature and that the use of a specified confidence level (e.g. 99%) does not take into account losses that occur beyond this level. There is some probability that the loss could be greater than the VaR amounts. These limitations and the nature of the VaR measure mean that the Fund can neither guarantee that losses will not exceed the VaR amounts indicated, nor that losses in excess of the VaR amounts will not occur more frequently.
The one-day VaR based on 99% confidence level is 2.12%.
3.2.1 Market risk arising from foreign currency risk Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates.
19 BlackRock Common Contractual Funds
NOTES TO THE FINANCIAL STATEMENTS (continued)
3. Financial risks (continued)
3.2.1 Market risk arising from foreign currency risk (continued)
Exposure to foreign currency risk The Fund may invest in financial instruments denominated in currencies other than its functional currency. Consequently, the Fund is exposed, directly and/or indirectly, to risks that the exchange rate of its functional currency relative to other currencies may change in a manner which has an adverse effect on the value of the portion of Fund’s assets which are denominated in currencies other than its own currency.
The details of the open forward currency contracts in place to hedge foreign currency risk at the financial period end date are disclosed in the schedule of investments.
In addition, the Fund issued unit classes denominated in currencies other than the functional currency of the Fund.
Management of foreign currency risk The Fund engages in foreign currency hedging to minimise the effect of currency movements between the currencies of the investments held by the Fund and the Fund’s currency hedged unit classes.
The Investment Manager monitors foreign currency risk exposure against pre-determined tolerances and determines when a currency hedge should be reset and the gain or loss arising from such hedge reinvested or settled, while taking into consideration the frequency and associated transaction and reinvestment costs of resetting the currency hedge.
3.2.2 Market risk arising from interest rate risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.
Exposure to interest rate risk The Fund is exposed to interest rate risk through its cash holdings including margin cash held with brokers.
Management of interest rate risk Interest rate risk exposure is managed by constantly monitoring the position for deviations outside of a pre-determined tolerance level and, when necessary, rebalancing back to the original desired parameters.
3.2.3 Market risk arising from price risk Price risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting similar financial instruments traded in the market.
Exposure to price risk The Fund is exposed to price risk arising from its investments in financial instruments. The exposure of the Fund to price risk is the fair value of the investments held as shown in the schedule of investments of the Fund.
Management of price risk By diversifying the portfolio, where this is appropriate and consistent with the Fund’s objectives, the risk that a price change of a particular investment will have a material impact on the NAV of the Fund is minimised.
There is a risk that the valuation of the Fund may not fairly reflect the value of the investments held at a specific time due to events outside the control of the Directors, which could result in significant losses or inaccurate pricing for the Fund. To mitigate this risk the Directors may temporarily suspend the determination of the NAV of any Fund until a fair or reasonable valuation of the investments held can be determined.
3.3 Liquidity risk Liquidity risk is the risk that the Fund will encounter difficulties in meeting obligations associated with financial liabilities.
20 BlackRock Common Contractual Funds
NOTES TO THE FINANCIAL STATEMENTS (continued)
3. Financial risks (continued)
3.3 Liquidity risk (continued)
Exposure to liquidity risk The Fund’s principal liquidity risks arise from the ability of investors to effect redemption requests and the liquidity of the underlying investments the Fund has invested in.
The Fund’s unitholders may redeem their units on the close of any daily dealing deadline for cash equal to a proportionate share of the Fund’s NAV, excluding any duties and charges where applicable. The Fund is therefore potentially exposed to the liquidity risk of meeting the unitholders’ redemptions and may need to sell assets at prevailing market prices to meet liquidity demands.
The Fund is also exposed to liquidity risk associated with daily margin calls on FDIs.
The majority of the Fund’s financial liabilities fall due within three months. The expected settlement dates for FDI liabilities can be more than three months based on the analysis of the remaining period at the reporting date to the maturity date and are outlined in the schedule of investments.
Management of liquidity risk Liquidity risk is minimised by holding sufficient liquid investments which can be readily realised to meet liquidity demands. Asset disposals may also be required to meet redemption requests. However, timely sale of trading positions can be impaired by many factors including trading volume and increased price volatility. As a result, the Fund may experience difficulties in disposing of assets to satisfy liquidity demands.
The Fund’s liquidity risk is managed by the Investment Manager in accordance with established policies and procedures in place. The portfolio managers review daily forward-looking cash reports which project cash obligations. These reports allow them to manage their cash obligations. If redemption requests from all holders of units in a Fund exceed more than 10% of the NAV of the Fund on any particular dealing day, the Directors shall be entitled, at their discretion, to refuse to redeem such excess numbers of units in issue from the Fund. The units which are not redeemed at any given dealing day shall be redeemed on each subsequent dealing day on a pro-rata basis in priority to any requests received thereafter.
None of the assets of the Fund is subject to special liquidity arrangements.
3.4 Counterparty credit risk Counterparty credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation.
Exposure to counterparty credit risk The Fund is exposed to counterparty credit risk from the parties with which it trades and will bear the risk of settlement default.
The Fund’s exposure is limited to the contracts in which it currently has a financial asset position reduced by any collateral received from the counterparty, or to counterparties who have received collateral from the Fund. The carrying value of financial assets together with cash held with counterparties best represents the Fund’s gross maximum exposure to counterparty credit risk at the reporting date, before including the effect of any International Swaps and Derivatives Associations, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement, and netting, which would reduce the overall counterparty credit risk exposure. The Fund only transacts with counterparties that are regulated entities subject to prudential supervision, or with high credit-ratings assigned by international credit- rating agencies. Cash held as security by the counterparty to FDI contracts is subject to the credit risk of the counterparty.
All transactions in listed securities are settled/paid for upon delivery of securities, using approved brokers. Risk relating to unsettled transactions is considered low due to the short settlement period involved and the high credit quality of the brokers used.
21 BlackRock Common Contractual Funds
NOTES TO THE FINANCIAL STATEMENTS (continued)
3. Financial risks (continued)
3.4 Counterparty credit risk (continued)
Management of counterparty credit risk Counterparty credit risk is monitored and managed by BlackRock’s RQA Counterparty & Concentration Risk Team. The team is headed by BlackRock’s Chief Counterparty Credit Officer who reports to the Global Head of RQA. Credit authority resides with the Chief Counterparty Credit Officer and selected team members to whom specific credit authority has been delegated. As such, counterparty approvals may be granted by the Chief Counterparty Credit Officer, or by identified RQA Credit Risk Officers who have been formally delegated authority by the Chief Counterparty Credit Officer.
The BlackRock RQA Counterparty & Concentration Risk Team completes a formal review of each new counterparty, monitors and reviews all approved counterparties on an ongoing basis and maintains an active oversight of counterparty exposures and the collateral management process.
There were no past due or impaired balances in relation to transactions with counterparties as at 30 April 2019.
3.4.1 FDIs The Fund’s holdings in exchange traded and OTC FDIs expose the Fund to counterparty credit risk.
3.4.1.1 Exchange traded FDIs The exposure is limited by trading contracts through a clearing house. The Fund’s exposure to credit risk on contracts in which it currently has a gain position is reduced by such gains received in cash from the counterparty under the daily mark-to-market mechanism on exchange traded contracts (variation margin). The Fund’s exposure to credit risk on contracts in which it currently has a loss position is equal to the amount of margin posted to the counterparty which has not been transferred to the exchange under the daily mark-to-market mechanism.
3.4.1.2 OTC FDIs The risk in relation to OTC FDIs arises from the failure of the counterparty to perform according to the terms of the contract as these FDI transactions are traded bilaterally and not through a central clearing counterparty.
All OTC FDI transactions are entered into by the Fund under an ISDA Master Agreement or similar agreement. An ISDA Master Agreement is a bilateral agreement between the Fund and a counterparty that governs OTC FDI transactions entered into by the parties.
The parties’ exposures under the ISDA Master Agreement are netted and collateralised together, therefore, any collateral disclosures provided are in respect of all OTC FDI transactions entered into by the Fund under the ISDA Master Agreement. All cash collateral received/posted by the Fund under the ISDA Master Agreement is transferred bilaterally under a title transfer arrangement.
The Fund is the legal owner of inbound collateral and can sell the assets and withhold the cash in the case of default. If the counterparty fulfils its obligations in relation to the investment, the Fund will return an equal amount of cash to the counterparty on maturity or sale of the investment. When the Fund returns securities collateral to the counterparty, it must be of the same type, nominal value, description and amount as the securities that were transferred to the Fund. Trading in OTC FDIs which have not been collateralised give rise to counterparty exposure.
22 BlackRock Common Contractual Funds
NOTES TO THE FINANCIAL STATEMENTS (continued)
3. Financial risks (continued)
3.4 Counterparty credit risk (continued)
3.4.1.2 OTC FDIs (continued) The Fund’s maximum exposure to counterparty credit risk from holding forward currency contracts will be equal to the notional amount of the currency contract and any net unrealised gains as disclosed in the Fund’s schedule of investments.
Forward currency contracts do not require variation margins and the counterparty credit risk is monitored through the BlackRock RQA Counterparty & Concentration Risk Team who monitor the creditworthiness of the counterparty.
3.4.2 Depositary
The majority of the investments are held by the Depositary at the financial period end. Investments are segregated from the assets of the Depositary, with ownership rights remaining with the Fund. Bankruptcy or insolvency of the Depositary may cause the Fund’s rights with respect to its investments held by the Depositary to be delayed or limited. The maximum exposure to this risk is the amount of long investments disclosed in the schedule of investments, plus any unsettled trades.
The Depositary has appointed The Northern Trust Company (the “Sub-Custodian”) as its global Sub-Custodian. Substantially all of the cash of the Fund is held with the Sub-Custodian in its account together with its own cash balances and with those cash balances that are held on behalf of other clients. The Fund’s cash balances are separately identifiable within the records of the Sub-Custodian.
In respect of the cash held by the Sub-Custodian or other depositaries it appoints, the Fund will be exposed to counterparty credit risk of the Sub-Custodian or those depositaries. In the event of the insolvency or bankruptcy of the Sub-Custodian or other depositaries, the Fund will be treated as a general creditor of the Sub-Custodian or the depositaries.
To mitigate the Fund’s exposure to the Depositary, the Investment Manager employs specific procedures to ensure that the Depositary is a reputable institution and that the counterparty credit risk is acceptable to the Fund. The Fund only transacts with Depositary’s that are regulated entities subject to prudential supervision, or with "high credit ratings" assigned by international credit rating agencies.
The long-term credit rating of the parent company of the Depositary, as at 30 April 2019 is A+ (Standard & Poor’s rating).
In order to further mitigate the Fund’s counterparty credit risk exposure to the Sub-Custodian or depositary banks, the Fund may enter into additional arrangements such as the placing of residual cash in a money market fund.
23 BlackRock Common Contractual Funds
NOTES TO THE FINANCIAL STATEMENTS (continued)
4. Fair value hierarchy
The Fund classifies financial instruments measured at fair value using a fair value hierarchy. The fair value hierarchy has the following categories:
Level 1: The unadjusted quoted price in an active market for identical assets or liabilities that the entity can access at the measurement date.
Level 2: Inputs other than quoted prices included within Level 1 that are observable (i.e. developed using market data) for the asset or liability, either directly or indirectly. This category includes instruments valued using: quoted prices in active markets for similar instruments; quoted prices for similar instruments in markets that are considered less than active; or other valuation techniques where all significant inputs are directly or indirectly observable from market data.
Level 3: Inputs are unobservable (i.e. for which market data is unavailable) for the asset or liability. This category includes all instruments where the valuation techniques used include inputs not based on market data and these inputs could have a significant impact on the instrument’s valuation. This category also includes instruments that are valued based on quoted prices for similar instruments where significant entity determined adjustments or assumptions are required to reflect differences between the instruments and instruments for which there is no active market.
Valuation techniques include net present value and discounted cash flow models, comparison with similar instruments for which observable market prices exist and other valuation models. Assumptions and inputs used in valuation techniques include risk-free and benchmark interest rates, credit spreads and other premiums used in estimating discount rates, bond and equity prices, foreign currency exchange rates, equity indices, and expected price volatilities and correlations.
The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety is determined on the basis of the lowest level input that is significant to the fair value measurement in its entirety. For this purpose, the significance of an input is assessed against the fair value measurement in its entirety. If a fair value measurement uses observable inputs that require significant adjustment based on unobservable inputs, that measurement is a level 3 measurement. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgement, considering factors specific to the asset or liability.
The determination of what constitutes ‘observable’ inputs requires significant judgement. The Directors consider observable inputs to be market data that is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market.
The following table provides an analysis of the Fund’s financial assets and financial liabilities measured at fair value as at 30 April 2019:
30 April 2019
Level 1 Level 2 Level 3 Total CCF Developed World (ESG Screened) Index Fund USD '000 USD '000 USD '000 USD '000 Financial assets at fair value through profit or loss: Equities 908,559 - - 908,559 Unrealised gains on forward currency contracts - 455 - 455 Unrealised gains on futures contracts 304 - - 304 Financial liabilities at fair value through profit or loss: - Unrealised losses on forward currency contracts - (33) - (33) Total 908,863 422 - 909,285
24 BlackRock Common Contractual Funds
NOTES TO THE FINANCIAL STATEMENTS (continued)
5. OPERATING INCOME For the financial period ended 30 April 2019 CCF Developed World (ESG Screened) Index Fund^
2019 USD '000
Interest income on cash 16 Dividend income 8,399 Total 8,415
^The Fund launched during the financial period.
6. OPERATING EXPENSES For the financial period ended 30 April 2019 CCF Developed World (ESG Screened) Index Fund^
2019 USD '000 Administration fees (16) Audit fees (11) Custody fees (65) Depositary fees (24) Establishment costs (501) Legal fees (5) Secretarial fees (2) Transfer agent fees (2) Other operating expenses (12) Total (638)
^The Fund launched during the financial period.
Management fees (inclusive of investment management, administrator and depositary fees): The Manager is entitled to charge a fee calculated as a percentage per annum of the NAV of the Fund or relevant unit class as set out in the “Table of fees and expenses”. The expenses of the Manager shall be included in this Management Fee. Different percentages may be charged to different unit classes of the same Fund and in this respect the fees payable may be higher or lower than the fees payable by other or existing unit classes. Client Agreements exist in respect of the unit classes and investment management fees/expenses will be charged to the assets attributable to those unit classes. Unitholders will also be subject to investment management fees/expenses with regard to their investment in the unit classes based on the Client Agreement between themselves and the Investment Manager. The Manager will arrange for payment of the fees and out of pocket expenses of the Administrator, the Depositary and the Principal Distributor out of the assets of the relevant Fund.
25 BlackRock Common Contractual Funds
NOTES TO THE FINANCIAL STATEMENTS (continued)
6. OPERATING EXPENSES (continued)
Table of fees and expenses Manager Fee up to Investment CCF Developed World (ESG Screened) Index Fund the following Management Fee CCF Developed World (ESG Screened) Index Fund 0.30%* Client Agreement X1 USD Flexible Accumulating Class CCF Developed World (ESG Screened) Index Fund 0.30%* Client Agreement X1 EUR Flexible Accumulating Class CCF Developed World (ESG Screened) Index Fund 0.30%* Client Agreement X1 EUR (Hedged) Flexible Accumulating Class
*No Manager fees were charged to the Fund for the financial period ended 30 April 2019.
7. NET GAINS/(LOSSES) ON FINANCIAL INSTRUMENTS For the financial period ended 30 April 2019 CCF Developed World (ESG Screened) Index Fund^
2019 USD '000 Net realised gains/(losses) on investments in securities 817 Net realised gains/(losses) on financial derivative instruments 1,185 Net change in unrealised gains/(losses) on investments in securities 98,784 Net change in unrealised gains/(losses) on financial derivative instruments 304 Net gains/(losses) on foreign exchange on other instruments 447 Total 101,537
^The Fund launched during the financial period.
8. TAXATION
Irish tax The Fund does not have a separate legal personality and is transparent for tax purposes. The Fund is a fund within the meaning of section 739(I) Taxes Consolidation Act, 1997 (“TCA”), in which the unitholders by contractual arrangement participate and share in the property of the Fund as co-owners. The Fund is not chargeable to Irish tax in respect of its relevant income or relevant gains (“relevant profits”). Instead, the relevant profits of the Fund are treated as arising, or as the case may be, accruing to each unitholder of the Fund in proportion to the value of the units beneficially owned by the unitholder, as if the relevant profits had arisen or, as the case may be, accrued to the unitholders in the Fund without passing through the Fund. This tax treatment is subject to each of the units of the Fund being;
(a) an asset of a pension fund or being beneficially owned by a person other than an individual; or
(b) held by an intermediary, a depositary or trustee for the benefit of a person other than an individual.
No stamp duty, documentary, transfer or registration tax is payable by the Fund on the issue, transfer, redemption, repurchase or cancellation of or subscription for units in the Fund. Where any subscription for or redemption of units is satisfied by in-specie transfer of any Irish situate securities, property or other types of assets, Irish stamp duty may arise on the transfer of such assets.
26 BlackRock Common Contractual Funds
NOTES TO THE FINANCIAL STATEMENTS (continued)
8. TAXATION (continued)
Irish tax (continued)
Overseas tax Dividends, interest and capital gains (if any) received on investments made by the Entity may be subject to withholding taxes imposed by the country from which the investment income/gains are received and such taxes may not be recoverable by the Entity or its unitholders.
For financial reporting purposes, and in accordance with FRS 102, the Entity must recognise a provision for deferred tax payable arising from material timing differences between the taxation of unrealised gains in the financial statements and actual realisable taxable profits.
9. RECEIVABLES CCF Developed World (ESG Screened) Index Fund^
2019 USD '000 Dividend income receivable 2,090 Interest income receivable from cash 2 Sale of securities awaiting settlement 53 Withholding tax reclaim receivable 310 Total 2,455
^The Fund launched during the financial period.
10. PAYABLES CCF Developed World (ESG Screened) Index Fund^
2019 USD '000 Administration fees payable 16 Audit fees payable 11 Custody fees payable 65 Depositary fees payable 24 Interest payable on cash 1 Legal fees payable 5 Secretarial fees payable 2 Transfer agency fees payable 2 Other payables 510 Withholding tax payable on accrued dividend income 166 Total 802
^The Fund launched during the financial period.
27 BlackRock Common Contractual Funds
NOTES TO THE FINANCIAL STATEMENTS (continued)
11. UNITS IN ISSUE
The issued and fully paid redeemable units are at all times equal to the NAV of the Entity.
Unit transactions in the various classes in existence during the financial period were as follows:
Units issued Units redeemed during the financial during the financial period period 2019 CCF Developed World (ESG Screened) Index Fund^ X1 USD Flexible Accumulating Class 67,558,087 (67,558,087) - X1 EUR Flexible Accumulating Class 75,642,730 (15,706,173) 59,936,557 X1 EUR (Hedged) Flexible Accumulating Class 14,695,146 - 14,695,146 ^The Fund launched during the financial period.
12. NET ASSET VALUE ATTRIBUTABLE TO REDEEMABLE UNITHOLDERS As at 30 April 2019
2019 CCF Developed World (ESG Screened) Index Fund^ X1 USD Flexible Accumulating Class Net asset value USD '000 - Units in issue - Net asset value per unit USD - X1 EUR Flexible Accumulating Class Net asset value EUR '000 672,850 Units in issue 59,936,557 Net asset value per unit EUR 11.23 X1 EUR (Hedged) Flexible Accumulating Class Net asset value EUR '000 147,028 Units in issue 14,695,146 Net asset value per unit EUR 10.01
^The Fund launched during the financial period.
28 29 NOTES TO THE FINANCIAL STATEMENTS (continued) (continued) STATEMENTS FINANCIAL THE TO NOTES (continued) UNITHOLDERS REDEEMABLE TO ATTRIBUTABLE VALUE ASSET NET 12. BlackRock Common Contractual Funds Funds Contractual Common BlackRock BlackRock Common Contractual Funds
13. EXCHANGE RATES
The rates of exchange ruling at 30 April 2019 were: 2019
USD 1 = AUD 1.4208 CAD 1.3452 DKK 6.6617 EUR 0.8923 HKD 7.8454 ILS 3.6010 JPY 111.3750 NZD 1.4995 NOK 8.6475 GBP 0.7671 SGD 1.3612 SEK 9.5068 CHF 1.0190
The average daily rates of exchange at the financial period end were: 2019
USD 1 = AUD 1.4038 CAD 1.3345 DKK 6.5856 EUR 0.8823 HKD 7.8413 ILS 3.6540 JPY 110.7656 NZD 1.4730 NOK 8.5910 GBP 0.7718 SGD 1.3580 SEK 9.1801 CHF 0.9981
14. RELATED PARTY TRANSACTIONS
Parties are considered to be related if one party has the ability to control the other party or is able to exercise significant influence over the other party, in making financial or operational decisions.
The following entities were related parties to the Entity during the financial period ended 30 April 2019.
Manager BlackRock Asset Management Ireland Limited Investment Manager BlackRock Advisors (UK) Limited Promoter and Principal Distributor BlackRock Investment Management (UK) Limited
The ultimate holding company of the Manager, Investment Manager, Promoter and Principal Distributor is BlackRock, Inc. a company incorporated in Delaware USA. PNC Financial Services Group, Inc. (“PNC”), is a substantial shareholder in BlackRock, Inc. PNC did not provide any services to the Entity in the financial period ended 30 April 2019.
Fees paid to the Manager, Investment Manager, Promoter and Principal Distributor during the financial period, the nature of these transactions and the balances outstanding at the financial period end are disclosed in note 6 and in note 11 respectively.
30 BlackRock Common Contractual Funds
NOTES TO THE FINANCIAL STATEMENTS (continued)
14. RELATED PARTY TRANSACTIONS (continued)
The non-executive Directors as at 30 April 2019 are presented in the table below:
Director of BlackRock affiliates and/or other funds managed by Director Employee of the BlackRock Group BlackRock William Roberts (Chairman) No Yes Graham Bamping No Yes Patrick Boylan Yes No Paul Freeman No Yes Justin Mealy Yes No Barry O'Dwyer Yes Yes Adele Spillane Yes No Catherine Woods No No
There are no significant holdings in the Fund at the financial period end date.
No provisions have been recognised by the Fund against amounts due from related parties at the financial period end date.
No amounts have been written off during the financial period in respect of amounts due to or from related parties.
No commitments secured or unsecured or guarantees have been entered into with related parties during the financial period.
15. COMMITMENTS AND CONTINGENT LIABILITIES
There were no significant commitments or contingent liabilities at the financial period ended 30 April 2019.
16. SUBSEQUENT EVENTS
On 19 June 2019, Graham Bamping resigned as a non-executive Director.
Other than the above, there have been no events subsequent to the financial period end, which, in the opinion of the Directors, may have had an impact on the financial statements for the financial period ended 30 April 2019.
17. APPROVAL DATE
The financial statements were approved by the Directors on 21 August 2019.
31 BlackRock Common Contractual Funds
SCHEDULE OF INVESTMENTS As at 30 April 2019
Fair Value % of Net Holdings Currency Investments USD '000 Asset Value
Equities: 98.88%
Argentina: 0.06% 1,073 USD MercadoLibre, Inc. 519 0.06 Total Argentina 519 0.06
Australia: 2.22% 17,809 AUD AGL Energy Ltd. 279 0.03 49,609 AUD Alumina Ltd. 78 0.01 30,228 AUD Amcor Ltd. 341 0.04 59,133 AUD AMP Ltd. 94 0.01 34,253 AUD APA Group 232 0.03 15,742 AUD Aristocrat Leisure Ltd. 289 0.03 5,435 AUD ASX Ltd. 285 0.03 40,324 AUD Aurizon Holdings Ltd. 135 0.01 38,367 AUD AusNet Services 48 0.01 67,811 AUD Australia & New Zealand Banking Group Ltd. 1,298 0.14 8,050 AUD Bank of Queensland Ltd. 53 0.01 9,823 AUD Bendigo & Adelaide Bank Ltd. 71 0.01 11,018 AUD BlueScope Steel Ltd. 104 0.01 23,754 AUD Boral Ltd. 81 0.01 41,173 AUD Brambles Ltd. 349 0.04 5,285 AUD Caltex Australia Ltd. 101 0.01 11,137 AUD Challenger Ltd. 64 0.01 1,971 AUD CIMIC Group Ltd. 70 0.01 10,269 AUD Coca-Cola Amatil Ltd. 64 0.01 1,661 AUD Cochlear Ltd. 219 0.02 27,168 AUD Coles Group Ltd. 241 0.03 41,534 AUD Commonwealth Bank of Australia 2,178 0.24 9,347 AUD Computershare Ltd. 117 0.01 7,663 AUD Crown Resorts Ltd. 72 0.01 11,166 AUD CSL Ltd. 1,561 0.17 20,611 AUD Dexus, REIT 181 0.02 1,402 AUD Domino's Pizza Enterprises Ltd. 42 - 1,306 AUD Flight Centre Travel Group Ltd. 35 - 31,532 AUD Fortescue Metals Group Ltd. 159 0.02 41,307 AUD Goodman Group, REIT 383 0.04 36,571 AUD GPT Group, REIT 147 0.01 17,382 AUD Harvey Norman Holdings Ltd. 51 0.01 33,125 AUD Inc.itec Pivot Ltd. 79 0.01 59,527 AUD Insurance Australia Group Ltd. 330 0.04 11,635 AUD Lendlease Group 109 0.01 7,635 AUD Macquarie Group Ltd. 724 0.08 55,802 AUD Medibank Pvt Ltd. 112 0.01 75,300 AUD Mirvac Group, REIT 150 0.02 64,530 AUD National Australia Bank Ltd. 1,151 0.13 19,790 AUD Newcrest Mining Ltd. 348 0.04 27,789 AUD Oil Search Ltd. 152 0.01
32 BlackRock Common Contractual Funds
SCHEDULE OF INVESTMENTS (continued) As at 30 April 2019
Fair Value % of Net Holdings Currency Investments USD '000 Asset Value
Equities (continued)
Australia (continued) 7,684 AUD Orica Ltd. 101 0.01 48,729 AUD Origin Energy Ltd. 253 0.03 36,155 AUD QBE Insurance Group Ltd. 329 0.04 2,867 AUD Ramsay Health Care Ltd. 132 0.01 1,068 AUD REA Group Ltd. 60 0.01 8,760 AUD Rio Tinto Ltd. 588 0.06 51,151 AUD Santos Ltd. 259 0.03 107,732 AUD Scentre Group, REIT 290 0.03 6,757 AUD SEEK Ltd. 87 0.01 12,362 AUD Sonic Healthcare Ltd. 223 0.02 49,327 AUD Stockland, REIT 131 0.01 33,149 AUD Suncorp Group Ltd. 310 0.03 22,285 AUD Sydney Airport 120 0.01 38,738 AUD Tabcorp Holdings Ltd. 131 0.01 83,632 AUD Telstra Corp. Ltd. 199 0.02 9,060 AUD TPG Telecom Ltd. 43 - 61,720 AUD Transurban Group 584 0.06 20,832 AUD Treasury Wine Estates Ltd. 252 0.03 66,687 AUD Vicinity Centres, REIT 119 0.01 26,760 AUD Wesfarmers Ltd. 678 0.07 84,948 AUD Westpac Banking Corp. 1,645 0.18 22,094 AUD Woodside Petroleum Ltd. 550 0.06 30,996 AUD Woolworths Group Ltd. 695 0.08 6,507 AUD WorleyParsons Ltd. 66 0.01 Total Australia 20,422 2.22
Austria: 0.08% 1,482 EUR ANDRITZ AG 71 0.01 7,863 EUR Erste Group Bank AG 315 0.03 2,998 EUR OMV AG 160 0.02 3,013 EUR Raiffeisen Bank International AG 80 0.01 2,333 EUR voestalpine AG 75 0.01 Total Austria 701 0.08
Belgium: 0.38% 5,154 EUR Ageas 271 0.03 18,343 EUR Anheuser-Busch InBev SA NV 1,629 0.18 1,223 EUR Colruyt SA 88 0.01 1,642 EUR Groupe Bruxelles Lambert SA 157 0.01 6,035 EUR KBC Group NV 447 0.05 3,096 EUR Proximus SADP 87 0.01 2,148 EUR Solvay SA 258 0.03 1,077 EUR Telenet Group Holding NV 57 0.01 3,345 EUR UCB SA 265 0.03 5,847 EUR Umicore SA 226 0.02 Total Belgium 3,485 0.38
33 BlackRock Common Contractual Funds
SCHEDULE OF INVESTMENTS (continued) As at 30 April 2019
Fair Value % of Net Holdings Currency Investments USD '000 Asset Value
Equities (continued)
Bermuda: 0.01% 820 USD RenaissanceRe Holdings Ltd. 127 0.01 Total Bermuda 127 0.01
Canada: 3.58% 3,936 CAD Telus Corporation 144 0.02 22,752 CAD Transcanada 1,081 0.12 6,311 CAD Agnico Eagle Mines Ltd. 260 0.03 10,179 CAD Alimentation Couche-Tard, Inc. 598 0.07 5,416 CAD AltaGas Ltd. 72 0.01 7,164 CAD ARC Resources Ltd. 45 - 1,933 CAD Atco Ltd. 66 0.01 16,292 CAD Aurora Cannabis, Inc. 147 0.02 15,841 CAD Bank of Montreal 1,246 0.14 29,907 CAD Bank of Nova Scotia (The) 1,640 0.18 3,006 CAD BCE, Inc. 134 0.01 10,331 CAD BlackBerry Ltd. 94 0.01 42,582 CAD Bombardier, Inc. 72 0.01 21,199 CAD Brookfield Asset Management, Inc. 1,018 0.11 5,452 CAD CAE, Inc. 126 0.01 8,011 CAD Cameco Corp. 88 0.01 10,029 CAD Canadian Imperial Bank of Commerce 841 0.09 17,886 CAD Canadian National Railway Co. 1,655 0.18 27,774 CAD Canadian Natural Resources Ltd. 830 0.09 3,231 CAD Canadian Pacific Railway Ltd. 721 0.08 1,851 CAD Canadian Tire Corp. Ltd. 203 0.02 2,622 CAD Canadian Utilities Ltd. 72 0.01 4,940 CAD Canopy Growth Corp. 249 0.03 3,022 CAD CCL Industries, Inc. 128 0.01 29,092 CAD Cenovus Energy, Inc. 287 0.03 6,131 CAD CGI, Inc. 439 0.05 5,323 CAD CI Financial Corp. 76 0.01 507 CAD Constellation Software, Inc 446 0.05 8,684 CAD Dollarama, Inc. 260 0.03 1,285 CAD Emera, Inc. 48 0.01 3,534 CAD Empire Co. Ltd. 78 0.01 48,992 CAD Enbridge, Inc. 1,802 0.20 35,554 CAD Encana Corp. 245 0.03 730 CAD Fairfax Financial Holdings Ltd. 347 0.04 3,424 CAD Finning International, Inc. 61 0.01 3,631 CAD First Capital Realty, Inc. 58 0.01 13,954 CAD First Quantum Minerals Ltd. 147 0.02 10,464 CAD Fortis, Inc. 385 0.04 4,655 CAD Franco-Nevada Corp. 332 0.03 1,555 CAD George Weston Ltd. 116 0.01 6,285 CAD Gildan Activewear, Inc. 231 0.03
34 BlackRock Common Contractual Funds
SCHEDULE OF INVESTMENTS (continued) As at 30 April 2019
Fair Value % of Net Holdings Currency Investments USD '000 Asset Value
Equities (continued)
Canada (continued) 5,447 CAD Great-West Lifeco, Inc. 136 0.01 2,849 CAD H&R, REIT 48 0.01 7,127 CAD Husky Energy, Inc. 77 0.01 6,671 CAD Hydro One Ltd. 108 0.01 2,583 CAD iA Financial Corp., Inc. 102 0.01 1,781 CAD IGM Financial, Inc. 49 0.01 8,158 CAD Imperial Oil Ltd. 236 0.03 3,860 CAD Intact Financial Corp. 315 0.03 7,850 CAD Inter Pipeline Ltd. 127 0.01 4,230 CAD Keyera Corp. 97 0.01 25,306 CAD Kinross Gold Corp. 80 0.01 5,211 CAD Loblaw Cos. Ltd. 254 0.02 7,991 CAD Magna International, Inc. 443 0.05 46,185 CAD Manulife Financial Corp. 847 0.09 1,295 CAD Methanex Corp. 71 0.01 6,769 CAD Metro, Inc. 244 0.02 8,344 CAD National Bank of Canada 396 0.04 13,926 CAD Nutrien Ltd. 752 0.08 1,744 CAD Onex Corp. 101 0.01 7,346 CAD Open Text Corp. 281 0.03 12,219 CAD Pembina Pipeline Corp. 435 0.05 7,174 CAD Power Corporation of Canada 164 0.02 5,681 CAD Power Financial Corp. 135 0.01 4,305 CAD PrairieSky Royalty Ltd. 62 0.01 6,024 CAD Restaurant Brands International, Inc. 392 0.04 3,111 CAD RioCan, REIT 60 0.01 8,574 CAD Rogers Communications, Inc. 430 0.04 34,752 CAD Royal Bank of Canada 2,758 0.30 4,718 CAD Saputo, Inc. 161 0.01 5,931 CAD Seven Generations Energy Ltd. 46 0.01 12,690 CAD Shaw Communications, Inc. 256 0.03 2,266 CAD Shopify, Inc. 549 0.06 1,740 CAD SmartCentres, REIT 44 - 3,554 CAD SNC-Lavalin Group, Inc. 88 0.01 3,598 CAD Stars Group, Inc. 68 0.01 14,232 CAD Sun Life Financial, Inc. 589 0.06 39,944 CAD Suncor Energy, Inc. 1,312 0.14 13,293 CAD Teck Resources Ltd. 313 0.03 5,430 CAD Thomson Reuters Corp. 334 0.03 44,069 CAD Toronto-Dominion Bank (The) 2,504 0.27 5,261 CAD Tourmaline Oil Corp. 78 0.01 2,946 CAD Vermilion Energy, Inc. 75 0.01 1,162 CAD West Fraser Timber Co. Ltd. 60 0.01 8,703 CAD Wheaton Precious Metals Corp. 187 0.02 2,119 CAD WSP Global, Inc. 114 0.01 Total Canada 32,866 3.58
35 BlackRock Common Contractual Funds
SCHEDULE OF INVESTMENTS (continued) As at 30 April 2019
Fair Value % of Net Holdings Currency Investments USD '000 Asset Value
Equities (continued)
Cayman Islands: 0.04% 24,000 HKD MGM China Holdings Ltd. 49 0.01 47,200 HKD Sands China Ltd. 259 0.02 31,600 HKD Wynn Macau Ltd. 91 0.01 Total Cayman Islands 399 0.04
Chile: 0.01% 13,410 CAD Lundin Mining Corp. 72 0.01 Total Chile 72 0.01
Denmark: 0.64% 77 DKK AP Moller - Maersk A/S 'A' 94 0.01 182 DKK AP Moller - Maersk A/S 'B' 237 0.03 2,774 DKK Carlsberg A/S 'B' 358 0.04 2,727 DKK Chr Hansen Holding A/S 278 0.03 3,092 DKK Coloplast A/S 333 0.03 17,660 DKK Danske Bank A/S 313 0.03 2,055 DKK Demant A/S 65 0.01 4,787 DKK DSV A/S 442 0.05 1,658 DKK Genmab A/S 275 0.03 1,418 DKK H Lundbeck A/S 60 0.01 3,401 DKK ISS A/S 106 0.01 43,484 DKK Novo Nordisk A/S 2,125 0.23 5,893 DKK Novozymes A/S 274 0.03 3,735 DKK Orsted A/S 286 0.03 2,240 DKK Pandora A/S 94 0.01 2,460 DKK Tryg A/S 75 0.01 4,801 DKK Vestas Wind Systems A/S 434 0.05 Total Denmark 5,849 0.64
Finland: 0.42% 2,895 EUR Elisa OYJ 123 0.01 11,883 EUR Fortum OYJ 251 0.02 8,243 EUR Kone OYJ 451 0.05 2,142 EUR Metso OYJ 80 0.01 10,242 EUR Neste OYJ 338 0.04 129,571 EUR Nokia OYJ 679 0.07 2,388 EUR Nokian Renkaat OYJ 80 0.01 76,800 SEK Nordea Bank Abp 604 0.07 2,120 EUR Orion OYJ 70 0.01 10,667 EUR Sampo OYJ 487 0.05 11,216 EUR Stora Enso OYJ 139 0.02 13,682 EUR UPM-Kymmene OYJ 385 0.04 13,040 EUR Wartsila OYJ Abp 208 0.02 Total Finland 3,895 0.42
36 BlackRock Common Contractual Funds
SCHEDULE OF INVESTMENTS (continued) As at 30 April 2019
Fair Value % of Net Holdings Currency Investments USD '000 Asset Value
Equities (continued)
France: 3.68% 5,395 EUR Accor SA 227 0.02 604 EUR Aeroports de Paris 123 0.01 10,422 EUR Air Liquide SA 1,385 0.15 3,167 EUR Alstom SA 139 0.02 1,232 EUR Amundi SA 88 0.01 1,401 EUR Arkema SA 144 0.02 2,766 EUR Atos SE 285 0.03 47,425 EUR AXA SA 1,262 0.14 843 EUR BioMerieux 67 0.01 27,328 EUR BNP Paribas SA 1,453 0.16 17,874 EUR Bollore SA 85 0.01 6,247 EUR Bouygues SA 235 0.03 5,398 EUR Bureau Veritas SA 137 0.01 3,893 EUR Capgemini SE 472 0.05 15,910 EUR Carrefour SA 310 0.03 1,117 EUR Casino Guichard Perrachon SA 46 0.01 12,088 EUR Cie de Saint-Gobain 494 0.05 4,118 EUR Cie Generale des Etablissements Michelin SCA 531 0.06 3,494 EUR CNP Assurances 82 0.01 1,433 EUR Covivio, REIT 155 0.02 29,620 EUR Credit Agricole SA 406 0.04 14,150 EUR Danone SA 1,143 0.12 3,218 EUR Dassault Systemes SE 509 0.06 6,656 EUR Edenred 313 0.03 1,596 EUR Eiffage SA 167 0.02 16,440 EUR Electricite de France SA 237 0.03 42,001 EUR Engie SA 622 0.07 6,626 EUR EssilorLuxottica SA 806 0.09 953 EUR Eurazeo SE 75 0.01 3,553 EUR Eutelsat Communications SA 64 0.01 1,545 EUR Faurecia SA 78 0.01 930 EUR Gecina SA, REIT 139 0.02 14,068 EUR Getlink SE 226 0.02 765 EUR Hermes International 538 0.06 683 EUR ICADE, REIT 58 0.01 540 EUR Iliad SA 55 0.01 834 EUR Imerys SA 44 - 1,221 EUR Ingenico Group SA 103 0.01 767 EUR Ipsen SA 89 0.01 1,516 EUR JCDecaux SA 50 0.01 1,726 EUR Kering SA 1,019 0.11 4,159 EUR Klepierre SA, REIT 148 0.02 6,581 EUR Legrand SA 483 0.05 6,093 EUR L'Oreal SA 1,674 0.18 6,637 EUR LVMH Moet Hennessy Louis Vuitton SE 2,596 0.28 19,236 EUR Natixis SA 113 0.01 45,847 EUR Orange SA 718 0.08
37 BlackRock Common Contractual Funds
SCHEDULE OF INVESTMENTS (continued) As at 30 April 2019
Fair Value % of Net Holdings Currency Investments USD '000 Asset Value
Equities (continued)
France (continued) 5,148 EUR Pernod Ricard SA 896 0.10 15,488 EUR Peugeot SA 405 0.04 5,605 EUR Publicis Groupe SA 332 0.03 460 EUR Remy Cointreau SA 61 0.01 5,040 EUR Renault SA 344 0.04 6,187 EUR Rexel SA 83 0.01 26,884 EUR Sanofi 2,335 0.25 563 EUR Sartorius Stedim Biotech 76 0.01 13,629 EUR Schneider Electric SE 1,153 0.13 4,771 EUR SCOR SE 194 0.02 460 EUR SEB SA 84 0.01 522 EUR Societe BIC SA 45 - 17,617 EUR Societe Generale SA 557 0.06 1,670 EUR Sodexo SA 191 0.02 7,588 EUR Suez 107 0.01 1,581 EUR Teleperformance 304 0.03 57,071 EUR TOTAL SA 3,169 0.34 2,391 EUR Ubisoft Entertainment SA 228 0.02 3,196 EUR Unibail-Rodamco-Westfield, REIT 549 0.05 4,890 EUR Valeo SA 177 0.02 14,001 EUR Veolia Environnement SA 330 0.04 12,405 EUR Vinci SA 1,251 0.14 24,097 EUR Vivendi SA 699 0.07 565 EUR Wendel SA 78 0.01 Total France 33,841 3.68
Germany: 2.94% 1,079 EUR 1&1 Drillisch AG 40 - 4,280 EUR adidas AG 1,099 0.12 10,265 EUR Allianz SE 2,471 0.27 23,072 EUR Aroundtown SA 187 0.02 988 EUR Axel Springer SE 56 0.01 22,070 EUR BASF SE 1,793 0.20 7,629 EUR Bayerische Motoren Werke AG 649 0.07 1,132 EUR Bayerische Motoren Werke AG, Preference 83 0.01 2,667 EUR Beiersdorf AG 291 0.03 4,579 EUR Brenntag AG 247 0.03 29,291 EUR Commerzbank AG 263 0.03 2,695 EUR Continental AG 445 0.05 5,211 EUR Covestro AG 285 0.03 22,080 EUR Daimler AG 1,444 0.16 1,892 EUR Delivery Hero SE 87 0.01 47,362 EUR Deutsche Bank AG 391 0.04 4,358 EUR Deutsche Boerse AG 581 0.06 4,820 EUR Deutsche Lufthansa AG 116 0.01 22,723 EUR Deutsche Post AG 787 0.09 81,034 EUR Deutsche Telekom AG 1,354 0.15
38 BlackRock Common Contractual Funds
SCHEDULE OF INVESTMENTS (continued) As at 30 April 2019
Fair Value % of Net Holdings Currency Investments USD '000 Asset Value
Equities (continued)
Germany (continued) 8,626 EUR Deutsche Wohnen SE 387 0.04 52,960 EUR E.ON SE 568 0.06 3,320 EUR Evonik Industries AG 99 0.01 847 EUR Fraport AG Frankfurt Airport Services Worldwide 70 0.01 5,356 EUR Fresenius Medical Care AG & Co. KGaA 450 0.05 9,805 EUR Fresenius SE & Co. KGaA 556 0.06 1,415 EUR FUCHS PETROLUB SE, Preference 61 - 3,306 EUR GEA Group AG 92 0.01 1,712 EUR Hannover Rueck SE 258 0.03 4,077 EUR HeidelbergCement AG 329 0.04 2,775 EUR Henkel AG & Co. KGaA 264 0.03 4,287 EUR Henkel AG & Co. KGaA, Preference 434 0.05 431 EUR HOCHTIEF AG 64 0.01 1,290 EUR HUGO BOSS AG 90 0.01 27,350 EUR Infineon Technologies AG 644 0.07 2,827 EUR Innogy SE 131 0.01 1,442 EUR KION Group AG 99 0.01 1,770 EUR LANXESS AG 102 0.01 3,299 EUR Merck KGaA 351 0.04 3,665 EUR METRO AG 62 0.01 1,395 EUR MTU Aero Engines AG 328 0.04 3,441 EUR Muenchener Rueckversicherungs-Gesellschaft AG 860 0.09 2,024 EUR OSRAM Licht AG 69 0.01 4,743 EUR ProSiebenSat.1 Media SE 75 0.01 169 EUR Puma SE 104 0.01 13,502 EUR RWE AG 345 0.04 23,402 EUR SAP SE 3,005 0.33 724 EUR Sartorius AG, Preference 132 0.01 18,211 EUR Siemens AG 2,178 0.24 3,053 EUR Siemens Healthineers AG 130 0.01 3,379 EUR Symrise AG 325 0.04 15,136 EUR Telefonica Deutschland Holding AG 49 0.01 12,452 EUR thyssenkrupp AG 175 0.01 8,933 GBP TUI AG 99 0.01 4,097 EUR Uniper SE 124 0.01 2,504 EUR United Internet AG 100 0.01 11,842 EUR Vonovia SE 590 0.06 2,824 EUR Wirecard AG 423 0.04 2,276 EUR Zalando SE 107 0.01 Total Germany 26,998 2.94
Hong Kong: 1.38% 298,400 HKD AIA Group Ltd. 3,041 0.33 6,200 HKD ASM Pacific Technology Ltd. 72 0.01 25,800 HKD Bank of East Asia Ltd. 81 0.01 62,500 HKD CK Asset Holdings Ltd. 502 0.05 69,000 HKD CK Hutchison Holdings Ltd. 725 0.08
39 BlackRock Common Contractual Funds
SCHEDULE OF INVESTMENTS (continued) As at 30 April 2019
Fair Value % of Net Holdings Currency Investments USD '000 Asset Value
Equities (continued)
Hong Kong (continued) 13,500 HKD CK Infrastructure Holdings Ltd. 110 0.01 39,500 HKD CLP Holdings Ltd. 448 0.05 6,900 USD Dairy Farm International Holdings Ltd. 54 0.01 59,000 HKD Galaxy Entertainment Group Ltd. 441 0.04 18,000 HKD Hang Lung Group Ltd. 54 0.01 41,000 HKD Hang Lung Properties Ltd. 96 0.01 18,500 HKD Hang Seng Bank Ltd. 486 0.05 40,000 HKD Henderson Land Development Co. Ltd. 246 0.02 54,000 HKD HK Electric Investments & HK Electric Investments Ltd. 53 0.01 77,000 HKD HKT Trust & HKT Ltd. 119 0.01 222,000 HKD Hong Kong & China Gas Co. Ltd. 530 0.06 28,400 HKD Hong Kong Exchanges & Clearing Ltd. 985 0.11 33,900 USD Hongkong Land Holdings Ltd. 236 0.03 13,000 HKD Hysan Development Co. Ltd. 73 0.01 5,700 USD Jardine Matheson Holdings Ltd. 375 0.04 6,400 USD Jardine Strategic Holdings Ltd. 242 0.03 13,500 HKD Kerry Properties Ltd. 58 0.01 51,000 HKD Link, REIT 595 0.06 5,031 USD Melco Resorts & Entertainment Ltd. 126 0.01 43,500 HKD MTR Corp. Ltd. 259 0.03 172,000 HKD New World Development Co. Ltd. 285 0.03 32,000 HKD NWS Holdings Ltd. 66 0.01 86,000 HKD PCCW Ltd. 52 0.01 37,500 HKD Power Assets Holdings Ltd. 261 0.03 32,000 HKD Shangri-La Asia Ltd. 45 - 68,000 HKD Sino Land Co. Ltd. 120 0.01 46,000 HKD SJM Holdings Ltd. 56 0.01 38,500 HKD Sun Hung Kai Properties Ltd. 664 0.07 10,000 HKD Swire Pacific Ltd. 127 0.01 23,800 HKD Swire Properties Ltd. 97 0.01 27,000 HKD Techtronic Industries Co. Ltd. 195 0.02 179,000 HKD WH Group Ltd. 212 0.02 25,000 HKD Wharf Holdings Ltd. (The) 72 0.01 36,000 HKD Wharf Real Estate Investment Co. Ltd. 276 0.03 17,000 HKD Wheelock & Co. Ltd. 121 0.01 15,500 HKD Yue Yuen Industrial Holdings Ltd. 50 0.01 Total Hong Kong 12,706 1.38
Ireland: 0.26% 2,568 USD AerCap Holdings NV 127 0.01 16,575 EUR AIB Group plc 77 0.01 19,763 EUR Bank of Ireland Group plc 126 0.01 19,264 EUR CRH plc 646 0.07 2,837 GBP DCC plc 253 0.03 8,946 AUD James Hardie Industries plc 121 0.01 3,863 EUR Kerry Group plc 432 0.05
40 BlackRock Common Contractual Funds
SCHEDULE OF INVESTMENTS (continued) As at 30 April 2019
Fair Value % of Net Holdings Currency Investments USD '000 Asset Value
Equities (continued)
Ireland (continued) 4,496 EUR Kingspan Group plc 236 0.03 2,360 EUR Paddy Power Betfair plc 198 0.02 4,569 EUR Smurfit Kappa Group plc 134 0.02 Total Ireland 2,350 0.26
Israel: 0.20% 1,958 ILS Azrieli Group Ltd. 111 0.01 23,416 ILS Bank Hapoalim BM 172 0.02 42,068 ILS Bank Leumi Le-Israel BM 288 0.03 92,566 ILS Bezeq The Israeli Telecommunication Corp. Ltd. 63 0.01 3,218 USD Check Point Software Technologies Ltd. 389 0.05 21,126 ILS Israel Chemicals Ltd. 112 0.01 1,474 ILS Mizrahi Tefahot Bank Ltd. 32 - 1,356 ILS Nice Ltd. 187 0.02 23,472 USD Teva Pharmaceutical Industries Ltd. 357 0.04 885 USD Wix.com Ltd. 119 0.01 Total Israel 1,830 0.20
Italy: 0.70% 28,244 EUR Assicurazioni Generali SpA 548 0.06 11,822 EUR Davide Campari-Milano SpA 119 0.01 199,204 EUR Enel SpA 1,259 0.14 62,625 EUR Eni SpA 1,068 0.12 3,193 EUR Ferrari NV 432 0.05 340,864 EUR Intesa Sanpaolo SpA 893 0.10 12,638 EUR Mediobanca Banca di Credito Finanziario SpA 134 0.01 5,565 EUR Moncler SpA 228 0.02 8,142 EUR Pirelli & C SpA 59 - 10,634 EUR Poste Italiane SpA 113 0.01 4,912 EUR Prysmian SpA 95 0.01 2,128 EUR Recordati SpA 86 0.01 60,034 EUR Snam SpA 305 0.03 335,163 EUR Telecom Italia SpA 187 0.02 122,690 EUR Telecom Italia SpA, Savings Share 64 0.01 39,713 EUR Terna Rete Elettrica Nazionale SpA 238 0.03 46,737 EUR UniCredit SpA 646 0.07 Total Italy 6,474 0.70
Japan: 8.46% 800 JPY ABC-Mart, Inc. 50 0.01 11,400 JPY Acom Co. Ltd. 40 - 15,500 JPY Aeon Co. Ltd. 286 0.03 2,400 JPY AEON Financial Service Co. Ltd. 50 0.01 2,500 JPY Aeon Mall Co. Ltd. 38 - 3,800 JPY AGC, Inc. 129 0.01 3,000 JPY Air Water, Inc. 46 0.01 3,300 JPY Aisin Seiki Co. Ltd. 128 0.01
41 BlackRock Common Contractual Funds
SCHEDULE OF INVESTMENTS (continued) As at 30 April 2019
Fair Value % of Net Holdings Currency Investments USD '000 Asset Value
Equities (continued)
Japan (continued) 13,000 JPY Ajinomoto Co., Inc. 209 0.02 3,800 JPY Alfresa Holdings Corp. 106 0.01 3,800 JPY Alps Alpine Co. Ltd. 80 0.01 6,900 JPY Amada Holdings Co. Ltd. 77 0.01 2,300 JPY ANA Holdings, Inc. 80 0.01 2,400 JPY Aozora Bank Ltd. 58 - 9,100 JPY Asahi Group Holdings Ltd. 395 0.04 2,000 JPY Asahi Intecc Co. Ltd. 101 0.01 32,000 JPY Asahi Kasei Corp. 328 0.04 3,200 JPY Asics Corp. 39 - 44,700 JPY Astellas Pharma, Inc. 606 0.07 5,700 JPY Bandai Namco Holdings, Inc. 271 0.03 1,100 JPY Bank of Kyoto Ltd. (The) 47 0.01 1,600 JPY Benesse Holdings, Inc. 44 - 14,500 JPY Bridgestone Corp. 574 0.06 4,500 JPY Brother Industries Ltd. 88 0.01 1,600 JPY Calbee, Inc. 44 - 25,500 JPY Canon, Inc. 707 0.07 3,900 JPY Casio Computer Co. Ltd. 49 0.01 3,300 JPY Central Japan Railway Co. 708 0.08 12,300 JPY Chiba Bank Ltd. (The) 64 - 16,700 JPY Chubu Electric Power Co., Inc. 242 0.02 5,700 JPY Chugai Pharmaceutical Co. Ltd. 360 0.04 5,600 JPY Chugoku Electric Power Co., Inc. (The) 67 0.01 2,700 JPY Coca-Cola Bottlers Japan Holdings, Inc. 66 0.01 21,800 JPY Concordia Financial Group Ltd. 85 0.01 3,600 JPY Credit Saison Co. Ltd. 46 0.01 2,100 JPY CyberAgent, Inc. 84 0.01 4,900 JPY Dai Nippon Printing Co. Ltd. 116 0.01 2,100 JPY Daifuku Co. Ltd. 128 0.01 25,900 JPY Dai-ichi Life Holdings, Inc. 371 0.04 13,500 JPY Daiichi Sankyo Co. Ltd. 664 0.07 5,900 JPY Daikin Industries Ltd. 747 0.08 2,000 JPY Daito Trust Construction Co. Ltd. 267 0.03 13,600 JPY Daiwa House Industry Co. Ltd. 380 0.04 35 JPY Daiwa House Investment Corp., REIT 80 0.01 44,600 JPY Daiwa Securities Group, Inc. 206 0.02 2,500 JPY DeNA Co. Ltd. 39 - 10,400 JPY Denso Corp. 453 0.05 5,900 JPY Dentsu, Inc. 240 0.02 600 JPY Disco Corp. 103 0.01 7,200 JPY East Japan Railway Co. 677 0.07 6,000 JPY Eisai Co. Ltd. 348 0.04 3,000 JPY Electric Power Development Co. Ltd. 69 0.01 7,200 JPY FamilyMart UNY Holdings Co. Ltd. 192 0.02 4,900 JPY FANUC Corp. 914 0.10 1,400 JPY Fast Retailing Co. Ltd. 808 0.09
42 BlackRock Common Contractual Funds
SCHEDULE OF INVESTMENTS (continued) As at 30 April 2019
Fair Value % of Net Holdings Currency Investments USD '000 Asset Value
Equities (continued)
Japan (continued) 2,400 JPY Fuji Electric Co. Ltd. 85 0.01 9,500 JPY FUJIFILM Holdings Corp. 442 0.05 5,100 JPY Fujitsu Ltd. 373 0.04 3,000 JPY Fukuoka Financial Group, Inc. 69 0.01 4,700 JPY Hakuhodo DY Holdings, Inc. 79 0.01 2,800 JPY Hamamatsu Photonics KK 113 0.01 6,600 JPY Hankyu Hanshin Holdings, Inc. 246 0.02 400 JPY Hikari Tsushin, Inc. 74 0.01 5,200 JPY Hino Motors Ltd. 49 0.01 600 JPY Hirose Electric Co. Ltd. 69 0.01 1,200 JPY Hisamitsu Pharmaceutical Co., Inc. 51 0.01 2,800 JPY Hitachi Chemical Co. Ltd. 74 0.01 2,200 JPY Hitachi Construction Machinery Co. Ltd. 58 0.01 1,400 JPY Hitachi High-Technologies Corp. 62 - 24,500 JPY Hitachi Ltd. 811 0.09 4,300 JPY Hitachi Metals Ltd. 49 0.01 38,800 JPY Honda Motor Co. Ltd. 1,080 0.12 1,100 JPY Hoshizaki Corp. 71 0.01 9,100 JPY Hoya Corp. 639 0.07 6,000 JPY Hulic Co. Ltd. 52 0.01 4,258 JPY Idemitsu Kosan Co. Ltd. 138 0.02 3,000 JPY Iida Group Holdings Co. Ltd. 51 0.01 27,500 JPY Inpex Corp. 267 0.03 6,800 JPY Isetan Mitsukoshi Holdings Ltd. 65 0.01 15,700 JPY Isuzu Motors Ltd. 225 0.02 33,600 JPY ITOCHU Corp. 603 0.07 4,700 JPY J Front Retailing Co. Ltd. 57 - 2,300 JPY Japan Airlines Co. Ltd. 77 0.01 1,200 JPY Japan Airport Terminal Co. Ltd. 50 0.01 14,200 JPY Japan Exchange Group, Inc. 231 0.03 8,200 JPY Japan Post Bank Co. Ltd. 90 0.01 37,600 JPY Japan Post Holdings Co. Ltd. 420 0.05 17 JPY Japan Prime Realty Investment Corp., REIT 68 0.01 39 JPY Japan Real Estate Investment Corp., REIT 216 0.02 53 JPY Japan Retail Fund Investment Corp., REIT 101 0.01 13,900 JPY JFE Holdings, Inc. 238 0.03 4,200 JPY JGC Corp. 60 0.01 3,900 JPY JSR Corp. 59 0.01 4,200 JPY JTEKT Corp. 54 0.01 78,200 JPY JXTG Holdings, Inc. 380 0.04 9,100 JPY Kajima Corp. 134 0.01 2,800 JPY Kakaku.com, Inc. 57 0.01 2,200 JPY Kamigumi Co. Ltd. 52 0.01 1,200 JPY Kaneka Corp. 46 0.01 18,500 JPY Kansai Electric Power Co., Inc. (The) 223 0.02 3,600 JPY Kansai Paint Co. Ltd. 68 0.01 12,100 JPY Kao Corp. 930 0.10
43 BlackRock Common Contractual Funds
SCHEDULE OF INVESTMENTS (continued) As at 30 April 2019
Fair Value % of Net Holdings Currency Investments USD '000 Asset Value
Equities (continued)
Japan (continued) 2,900 JPY Kawasaki Heavy Industries Ltd. 67 0.01 42,200 JPY KDDI Corp. 963 0.10 2,000 JPY Keihan Holdings Co. Ltd. 85 0.01 4,500 JPY Keikyu Corp. 77 0.01 2,100 JPY Keio Corp. 126 0.01 2,600 JPY Keisei Electric Railway Co. Ltd. 91 0.01 2,300 JPY Keyence Corp. 1,427 0.15 4,200 JPY Kikkoman Corp. 195 0.02 5,100 JPY Kintetsu Group Holdings Co. Ltd. 226 0.02 19,800 JPY Kirin Holdings Co. Ltd. 448 0.05 1,000 JPY Kobayashi Pharmaceutical Co. Ltd. 80 0.01 6,300 JPY Kobe Steel Ltd. 48 0.01 2,100 JPY Koito Manufacturing Co. Ltd. 125 0.01 22,000 JPY Komatsu Ltd. 563 0.06 1,900 JPY Konami Holdings Corp. 86 0.01 9,200 JPY Konica Minolta, Inc. 92 0.01 600 JPY Kose Corp. 112 0.01 24,300 JPY Kubota Corp. 367 0.04 6,500 JPY Kuraray Co. Ltd. 87 0.01 2,000 JPY Kurita Water Industries Ltd. 52 0.01 7,800 JPY Kyocera Corp. 504 0.05 5,300 JPY Kyowa Hakko Kirin Co. Ltd. 103 0.01 7,700 JPY Kyushu Electric Power Co., Inc. 74 0.01 3,200 JPY Kyushu Railway Co. 104 0.01 1,000 JPY Lawson, Inc. 47 0.01 1,500 JPY LINE Corp. 50 0.01 4,500 JPY Lion Corp. 92 0.01 5,400 JPY LIXIL Group Corp. 70 0.01 8,500 JPY M3, Inc. 150 0.02 6,300 JPY Makita Corp. 229 0.02 40,600 JPY Marubeni Corp. 290 0.03 3,900 JPY Marui Group Co. Ltd. 79 0.01 1,400 JPY Maruichi Steel Tube Ltd. 39 - 11,500 JPY Mazda Motor Corp. 136 0.01 1,400 JPY McDonald's Holdings Co. Japan Ltd. 65 0.01 16,700 JPY Mebuki Financial Group, Inc. 42 - 3,500 JPY Medipal Holdings Corp. 78 0.01 3,400 JPY MEIJI Holdings Co. Ltd. 267 0.03 7,800 JPY MinebeaMitsumi, Inc. 138 0.02 5,800 JPY MiSUMi Group, Inc. 150 0.02 34,800 JPY Mitsubishi Chemical Holdings Corp. 247 0.03 32,100 JPY Mitsubishi Corp. 881 0.10 43,300 JPY Mitsubishi Electric Corp. 615 0.07 28,100 JPY Mitsubishi Estate Co. Ltd. 473 0.05 3,300 JPY Mitsubishi Gas Chemical Co., Inc. 49 0.01 8,000 JPY Mitsubishi Heavy Industries Ltd. 332 0.04 2,100 JPY Mitsubishi Materials Corp. 54 0.01
44 BlackRock Common Contractual Funds
SCHEDULE OF INVESTMENTS (continued) As at 30 April 2019
Fair Value % of Net Holdings Currency Investments USD '000 Asset Value
Equities (continued)
Japan (continued) 13,600 JPY Mitsubishi Motors Corp. 76 0.01 5,100 JPY Mitsubishi Tanabe Pharma Corp. 64 0.01 292,200 JPY Mitsubishi UFJ Financial Group, Inc. 1,443 0.16 8,700 JPY Mitsubishi UFJ Lease & Finance Co. Ltd. 44 - 39,400 JPY Mitsui & Co. Ltd. 635 0.07 3,700 JPY Mitsui Chemicals, Inc. 90 0.01 21,200 JPY Mitsui Fudosan Co. Ltd. 489 0.05 2,300 JPY Mitsui OSK Lines Ltd. 58 0.01 575,700 JPY Mizuho Financial Group, Inc. 897 0.10 2,500 JPY MonotaRO Co. Ltd. 58 0.01 12,200 JPY MS&AD Insurance Group Holdings, Inc. 377 0.04 12,900 JPY Murata Manufacturing Co. Ltd. 690 0.08 2,300 JPY Nabtesco Corp. 70 0.01 3,700 JPY Nagoya Railroad Co. Ltd. 100 0.01 7,400 JPY NEC Corp. 249 0.03 13,600 JPY Nexon Co. Ltd. 195 0.02 5,300 JPY NGK Insulators Ltd. 78 0.01 3,200 JPY NGK Spark Plug Co. Ltd. 62 - 1,900 JPY NH Foods Ltd. 76 0.01 5,700 JPY Nidec Corp. 808 0.09 6,500 JPY Nikon Corp. 90 0.01 2,500 JPY Nintendo Co. Ltd. 853 0.09 38 JPY Nippon Building Fund, Inc., REIT 245 0.03 1,700 JPY Nippon Electric Glass Co. Ltd. 47 0.01 1,500 JPY Nippon Express Co. Ltd. 82 0.01 3,000 JPY Nippon Paint Holdings Co. Ltd. 114 0.01 35 JPY Nippon Prologis, Inc., REIT 75 0.01 19,600 JPY Nippon Steel Corp. 349 0.04 16,300 JPY Nippon Telegraph & Telephone Corp. 676 0.07 3,100 JPY Nippon Yusen KK 53 0.01 2,600 JPY Nissan Chemical Corp. 115 0.01 55,200 JPY Nissan Motor Co. Ltd. 443 0.05 4,000 JPY Nisshin Seifun Group, Inc. 93 0.01 1,300 JPY Nissin Foods Holdings Co. Ltd. 86 0.01 2,200 JPY Nitori Holdings Co. Ltd. 262 0.03 4,600 JPY Nitto Denko Corp. 247 0.03 87,900 JPY Nomura Holdings, Inc. 330 0.04 2,500 JPY Nomura Real Estate Holdings, Inc. 53 0.01 79 JPY Nomura Real Estate Master Fund, Inc., REIT 116 0.01 2,300 JPY Nomura Research Institute Ltd. 112 0.01 7,300 JPY NSK Ltd. 75 0.01 18,500 JPY NTT Data Corp. 215 0.02 33,000 JPY NTT DOCOMO, Inc. 714 0.08 13,200 JPY Obayashi Corp. 129 0.01 1,300 JPY Obic Co. Ltd. 150 0.02 9,100 JPY Odakyu Electric Railway Co. Ltd. 214 0.02 17,500 JPY Oji Holdings Corp. 105 0.01
45 BlackRock Common Contractual Funds
SCHEDULE OF INVESTMENTS (continued) As at 30 April 2019
Fair Value % of Net Holdings Currency Investments USD '000 Asset Value
Equities (continued)
Japan (continued) 32,800 JPY Olympus Corp. 366 0.04 5,600 JPY Omron Corp. 299 0.03 10,600 JPY Ono Pharmaceutical Co. Ltd. 198 0.02 800 JPY Oracle Corp. Japan 55 0.01 4,800 JPY Oriental Land Co. Ltd. 529 0.06 31,500 JPY ORIX Corp. 444 0.05 11,000 JPY Osaka Gas Co. Ltd. 203 0.02 2,100 JPY Otsuka Corp. 82 0.01 9,300 JPY Otsuka Holdings Co. Ltd. 331 0.04 3,500 JPY Pan Pacific International Holdings Corp. 225 0.02 52,500 JPY Panasonic Corp. 481 0.05 2,400 JPY Park24 Co. Ltd. 50 0.01 3,600 JPY Persol Holdings Co. Ltd. 67 0.01 2,300 JPY Pigeon Corp. 97 0.01 1,900 JPY Pola Orbis Holdings, Inc. 60 - 17,500 JPY Rakuten, Inc. 194 0.02 24,600 JPY Recruit Holdings Co. Ltd. 735 0.08 17,000 JPY Renesas Electronics Corp. 91 0.01 55,700 JPY Resona Holdings, Inc. 235 0.03 13,600 JPY Ricoh Co. Ltd. 137 0.01 700 JPY Rinnai Corp. 47 0.01 1,900 JPY Rohm Co. Ltd. 139 0.02 800 JPY Ryohin Keikaku Co. Ltd. 152 0.02 1,100 JPY Sankyo Co. Ltd. 43 - 6,500 JPY Santen Pharmaceutical Co. Ltd. 99 0.01 4,600 JPY SBI Holdings, Inc. 98 0.01 5,100 JPY Secom Co. Ltd. 428 0.05 3,500 JPY Sega Sammy Holdings, Inc. 44 - 4,500 JPY Seibu Holdings, Inc. 73 0.01 5,700 JPY Seiko Epson Corp. 91 0.01 7,500 JPY Sekisui Chemical Co. Ltd. 120 0.01 17,000 JPY Sekisui House Ltd. 274 0.03 18,500 JPY Seven & i Holdings Co. Ltd. 641 0.07 14,000 JPY Seven Bank Ltd. 38 - 1,900 JPY SG Holdings Co. Ltd. 51 0.01 4,300 JPY Sharp Corp. 48 0.01 4,500 JPY Shimadzu Corp. 120 0.01 600 JPY Shimamura Co. Ltd. 45 - 2,000 JPY Shimano, Inc. 293 0.03 11,200 JPY Shimizu Corp. 95 0.01 8,600 JPY Shin-Etsu Chemical Co. Ltd. 805 0.09 3,400 JPY Shinsei Bank Ltd. 47 0.01 6,700 JPY Shionogi & Co. Ltd. 390 0.04 9,000 JPY Shiseido Co. Ltd. 704 0.07 8,700 JPY Shizuoka Bank Ltd. 66 0.01 2,700 JPY Showa Denko KK 91 0.01 1,500 JPY SMC Corp. 620 0.07
46 BlackRock Common Contractual Funds
SCHEDULE OF INVESTMENTS (continued) As at 30 April 2019
Fair Value % of Net Holdings Currency Investments USD '000 Asset Value
Equities (continued)
Japan (continued) 40,600 JPY Softbank Corp. 478 0.05 20,600 JPY SoftBank Group Corp. 2,137 0.23 1,400 JPY Sohgo Security Services Co. Ltd. 62 - 8,800 JPY Sompo Holdings, Inc. 329 0.04 31,600 JPY Sony Corp. 1,479 0.16 3,500 JPY Sony Financial Holdings, Inc. 71 0.01 2,700 JPY Stanley Electric Co. Ltd. 73 0.01 15,500 JPY Subaru Corp. 379 0.04 4,800 JPY SUMCO Corp. 63 0.01 43,400 JPY Sumitomo Chemical Co. Ltd. 215 0.02 27,300 JPY Sumitomo Corp. 390 0.04 5,200 JPY Sumitomo Dainippon Pharma Co. Ltd. 114 0.01 20,200 JPY Sumitomo Electric Industries Ltd. 267 0.03 2,200 JPY Sumitomo Heavy Industries Ltd. 78 0.01 4,700 JPY Sumitomo Metal Mining Co. Ltd. 147 0.01 31,600 JPY Sumitomo Mitsui Financial Group, Inc. 1,141 0.12 8,700 JPY Sumitomo Mitsui Trust Holdings, Inc. 302 0.03 9,200 JPY Sumitomo Realty & Development Co. Ltd. 339 0.03 3,500 JPY Sumitomo Rubber Industries Ltd. 43 - 1,500 JPY Sundrug Co. Ltd. 40 - 2,800 JPY Suntory Beverage & Food Ltd. 123 0.01 1,500 JPY Suzuken Co. Ltd. 86 0.01 8,400 JPY Suzuki Motor Corp. 382 0.04 4,700 JPY Sysmex Corp. 268 0.03 11,300 JPY T&D Holdings, Inc. 121 0.01 2,400 JPY Taiheiyo Cement Corp. 77 0.01 5,900 JPY Taisei Corp. 258 0.03 700 JPY Taisho Pharmaceutical Holdings Co. Ltd. 65 0.01 2,600 JPY Taiyo Nippon Sanso Corp. 43 - 3,200 JPY Takashimaya Co. Ltd. 36 - 35,702 JPY Takeda Pharmaceutical Co. Ltd. 1,318 0.14 3,600 JPY TDK Corp. 313 0.03 3,600 JPY Teijin Ltd. 62 0.01 14,800 JPY Terumo Corp. 445 0.05 2,400 JPY THK Co. Ltd. 63 - 3,900 JPY Tobu Railway Co. Ltd. 110 0.01 2,300 JPY Toho Co. Ltd. 96 0.01 1,500 JPY Toho Gas Co. Ltd. 62 0.01 8,700 JPY Tohoku Electric Power Co., Inc. 99 0.01 14,800 JPY Tokio Marine Holdings, Inc. 744 0.08 1,000 JPY Tokyo Century Corp. 46 0.01 3,800 JPY Tokyo Electron Ltd. 602 0.07 10,300 JPY Tokyo Gas Co. Ltd. 261 0.03 14,100 JPY Tokyu Corp. 229 0.02 12,300 JPY Tokyu Fudosan Holdings Corp. 69 0.01 5,000 JPY Toppan Printing Co. Ltd. 81 0.01
47 BlackRock Common Contractual Funds
SCHEDULE OF INVESTMENTS (continued) As at 30 April 2019
Fair Value % of Net Holdings Currency Investments USD '000 Asset Value
Equities (continued)
Japan (continued) 37,200 JPY Toray Industries, Inc. 253 0.03 5,300 JPY Tosoh Corp. 85 0.01 2,900 JPY TOTO Ltd. 122 0.01 3,100 JPY Toyo Seikan Group Holdings Ltd. 62 - 1,800 JPY Toyo Suisan Kaisha Ltd. 68 0.01 2,100 JPY Toyoda Gosei Co. Ltd. 44 - 4,400 JPY Toyota Industries Corp. 249 0.02 55,500 JPY Toyota Motor Corp. 3,441 0.37 4,300 JPY Toyota Tsusho Corp. 142 0.02 3,600 JPY Trend Micro, Inc. 180 0.02 700 JPY Tsuruha Holdings, Inc. 60 0.01 10,300 JPY Unicharm Corp. 337 0.04 59 JPY United Urban Investment Corp., REIT 94 0.01 4,400 JPY USS Co. Ltd. 84 0.01 1,000 JPY Welcia Holdings Co. Ltd. 39 - 4,300 JPY West Japan Railway Co. 319 0.04 83,600 JPY Yahoo Japan Corp. 222 0.02 3,300 JPY Yakult Honsha Co. Ltd. 224 0.02 12,700 JPY Yamada Denki Co. Ltd. 60 - 4,300 JPY Yamaguchi Financial Group, Inc. 32 - 2,700 JPY Yamaha Corp. 139 0.02 5,700 JPY Yamaha Motor Co. Ltd. 117 0.01 8,700 JPY Yamato Holdings Co. Ltd. 188 0.02 2,500 JPY Yamazaki Baking Co. Ltd. 37 - 4,900 JPY Yaskawa Electric Corp. 180 0.02 4,600 JPY Yokogawa Electric Corp. 96 0.01 2,400 JPY Yokohama Rubber Co. Ltd. (The) 45 - 4,100 JPY ZOZO, Inc. 72 0.01 Total Japan 77,715 8.46 Luxembourg: 0.10% 16,484 EUR ArcelorMittal 357 0.04 233 EUR Eurofins Scientific SE 107 0.01 1,346 SEK Millicom International Cellular SA 79 0.01 806 EUR RTL Group SA 45 0.01 10,774 EUR SES SA 183 0.02 9,612 EUR Tenaris SA 133 0.01 Total Luxembourg 904 0.10
Mexico: 0.00% 4,485 GBP Fresnillo plc 44 - Total Mexico 44 - Netherlands: 1.06% 11,277 EUR ABN AMRO Group NV 265 0.03 181 EUR Adyen NV 147 0.02 49,399 EUR Aegon NV 258 0.03 5,402 EUR Akzo Nobel NV 458 0.05 9,797 EUR ASML Holding NV 2,037 0.22 48 BlackRock Common Contractual Funds
SCHEDULE OF INVESTMENTS (continued) As at 30 April 2019
Fair Value % of Net Holdings Currency Investments USD '000 Asset Value
Equities (continued)
Netherlands (continued) 2,207 EUR EXOR NV 147 0.02 3,102 EUR Heineken Holding NV 315 0.03 6,237 EUR Heineken NV 673 0.07 95,396 EUR ING Groep NV 1,214 0.13 28,687 EUR Koninklijke Ahold Delhaize NV 690 0.08 4,469 EUR Koninklijke DSM NV 510 0.06 90,066 EUR Koninklijke KPN NV 276 0.03 21,868 EUR Koninklijke Philips NV 930 0.10 1,431 EUR Koninklijke Vopak NV 64 - 8,037 EUR NN Group NV 350 0.04 7,722 USD NXP Semiconductors NV 816 0.09 2,425 EUR Randstad NV 138 0.01 7,009 EUR Wolters Kluwer NV 488 0.05 Total Netherlands 9,776 1.06 New Zealand: 0.07% 14,886 NZD a2 Milk Co. Ltd. 166 0.02 19,582 NZD Auckland International Airport Ltd. 104 0.01 11,638 NZD Fisher & Paykel Healthcare Corp. Ltd. 123 0.01 17,343 NZD Fletcher Building Ltd. 60 - 26,084 NZD Meridian Energy Ltd. 71 0.01 8,142 NZD Ryman Healthcare Ltd. 66 0.01 37,335 NZD Spark New Zealand Ltd. 91 0.01 Total New Zealand 681 0.07 Norway: 0.25% 2,199 NOK Aker BP ASA 72 0.01 23,467 NOK DNB ASA 450 0.05 26,010 NOK Equinor ASA 579 0.06 4,071 NOK Gjensidige Forsikring ASA 79 0.01 11,476 NOK Mowi ASA 248 0.03 27,373 NOK Norsk Hydro ASA 117 0.01 16,592 NOK Orkla ASA 130 0.01 1,995 NOK Schibsted ASA 48 - 18,713 NOK Telenor ASA 375 0.04 5,263 NOK Yara International ASA 237 0.03 Total Norway 2,335 0.25
People's Republic of China: 0.07% 801 USD BeiGene Ltd. 100 0.01 94,500 HKD BOC Hong Kong Holdings Ltd. 423 0.04 16,000 HKD Minth Group Ltd. 50 0.01 49,000 SGD Yangzijiang Shipbuilding Holdings Ltd. 57 0.01 Total People's Republic of China 630 0.07
Portugal: 0.06% 71,261 EUR EDP - Energias de Portugal SA 270 0.03 14,300 EUR Galp Energia SGPS SA 240 0.02 5,123 EUR Jeronimo Martins SGPS SA 83 0.01 Total Portugal 593 0.06 49 BlackRock Common Contractual Funds
SCHEDULE OF INVESTMENTS (continued) As at 30 April 2019
Fair Value % of Net Holdings Currency Investments USD '000 Asset Value
Equities (continued)
Singapore: 0.49% 79,700 SGD Ascendas, REIT 176 0.02 53,300 SGD CapitaLand Commercial Trust, REIT 76 0.01 80,500 SGD CapitaLand Ltd. 209 0.02 50,600 SGD CapitaLand Mall Trust, REIT 90 0.01 8,300 SGD City Developments Ltd. 55 0.01 44,100 SGD ComfortDelGro Corp. Ltd. 87 0.01 43,200 SGD DBS Group Holdings Ltd. 897 0.10 190,300 SGD Genting Singapore Ltd. 138 0.02 208,300 SGD Golden Agri-Resources Ltd. 44 - 2,000 SGD Jardine Cycle & Carriage Ltd. 52 0.01 44,300 SGD Keppel Corp. Ltd. 220 0.02 75,600 SGD Oversea-Chinese Banking Corp. Ltd. 672 0.07 13,700 SGD SATS Ltd. 53 - 22,500 SGD Sembcorp Industries Ltd. 44 - 11,000 SGD Singapore Airlines Ltd. 78 0.01 16,300 SGD Singapore Exchange Ltd. 88 0.01 31,800 SGD Singapore Technologies Engineering Ltd. 93 0.01 192,400 SGD Singapore Telecommunications Ltd. 448 0.05 43,400 SGD Suntec, REIT 59 0.01 32,300 SGD United Overseas Bank Ltd. 660 0.07 10,300 SGD UOL Group Ltd. 57 0.01 5,600 SGD Venture Corp. Ltd. 70 0.01 39,100 SGD Wilmar International Ltd. 105 0.01 Total Singapore 4,471 0.49
South Africa: 0.08% 24,820 GBP Anglo American plc 641 0.07 13,850 GBP Investec plc 88 0.01 Total South Africa 729 0.08
Spain: 1.10% 6,942 EUR ACS Actividades de Construccion y Servicios SA 318 0.03 1,788 EUR Aena SME SA 331 0.04 10,097 EUR Amadeus IT Group SA 803 0.09 165,041 EUR Banco Bilbao Vizcaya Argentaria SA 1,002 0.11 168,286 EUR Banco de Sabadell SA 195 0.02 383,424 EUR Banco Santander SA 1,939 0.21 25,117 EUR Bankia SA 69 0.01 21,645 EUR Bankinter SA 173 0.02 91,942 EUR CaixaBank SA 293 0.03 7,929 EUR Endesa SA 197 0.02 13,181 EUR Ferrovial SA 324 0.04 7,779 EUR Grifols SA 216 0.02 148,359 EUR Iberdrola SA 1,346 0.15 24,519 EUR Industria de Diseno Textil SA 741 0.08
50 BlackRock Common Contractual Funds
SCHEDULE OF INVESTMENTS (continued) As at 30 April 2019
Fair Value % of Net Holdings Currency Investments USD '000 Asset Value
Equities (continued)
Spain (continued) 39,211 EUR Mapfre SA 118 0.01 8,901 EUR Naturgy Energy Group SA 253 0.03 10,475 EUR Red Electrica Corp. SA 217 0.02 33,576 EUR Repsol SA 569 0.06 4,852 EUR Siemens Gamesa Renewable Energy SA 87 0.01 112,378 EUR Telefonica SA 936 0.10 Total Spain 10,127 1.10
Sweden: 0.92% 8,557 SEK Alfa Laval AB 198 0.02 24,116 SEK Assa Abloy AB 514 0.06 16,418 SEK Atlas Copco AB 'A' 510 0.06 10,894 SEK Atlas Copco AB 'B' 310 0.03 1,774 USD Autoliv, Inc. 139 0.02 8,090 SEK Boliden AB 240 0.02 4,897 SEK Electrolux AB 120 0.01 13,414 SEK Epiroc AB 'A' 139 0.02 7,938 SEK Epiroc AB 'B' 78 0.01 14,930 SEK Essity AB 443 0.05 22,040 SEK Hennes & Mauritz AB 384 0.04 6,815 SEK Hexagon AB 371 0.04 8,498 SEK Husqvarna AB 77 0.01 1,638 SEK ICA Gruppen AB 59 0.01 3,400 SEK Industrivarden AB 76 0.01 10,959 SEK Investor AB 522 0.05 4,924 SEK Kinnevik AB 143 0.02 1,547 SEK L E Lundbergforetagen AB 53 0.01 3,811 SEK Lundin Petroleum AB 125 0.01 27,519 SEK Sandvik AB 508 0.06 6,373 SEK Securitas AB 111 0.01 39,768 SEK Skandinaviska Enskilda Banken AB 379 0.04 6,923 SEK Skanska AB 120 0.01 7,718 SEK SKF AB 143 0.02 36,761 SEK Svenska Handelsbanken AB 401 0.04 21,790 SEK Swedbank AB 353 0.04 15,498 SEK Tele2 AB 207 0.02 77,752 SEK Telefonaktiebolaget LM Ericsson 769 0.08 72,764 SEK Telia Co. AB 310 0.03 37,690 SEK Volvo AB 603 0.07 Total Sweden 8,405 0.92
Switzerland: 2.75% 44,480 CHF ABB Ltd. 915 0.10 4,596 CHF Adecco Group AG 264 0.03 890 CHF Baloise Holding AG 152 0.02 45 CHF Barry Callebaut AG 82 0.01 22 CHF Chocoladefabriken Lindt & Spruengli AG 146 0.02
51 BlackRock Common Contractual Funds
SCHEDULE OF INVESTMENTS (continued) As at 30 April 2019
Fair Value % of Net Holdings Currency Investments USD '000 Asset Value
Equities (continued)
Switzerland (continued) 3 CHF Chocoladefabriken Lindt & Spruengli AG, Registered 228 0.02 4,054 CHF Clariant AG 83 0.01 4,107 GBP Coca-Cola HBC AG 147 0.02 56,714 CHF Credit Suisse Group AG 757 0.08 658 CHF Dufry AG 64 0.01 167 CHF EMS-Chemie Holding AG 101 0.01 943 CHF Geberit AG 395 0.04 222 CHF Givaudan SA 575 0.06 268,274 GBP Glencore plc 1,064 0.12 6,326 CHF Julius Baer Group Ltd. 305 0.03 1,579 CHF Kuehne + Nagel International AG 229 0.02 11,682 CHF LafargeHolcim Ltd. 600 0.07 1,792 CHF Lonza Group AG 553 0.06 74,008 CHF Nestle SA 7,121 0.78 786 CHF Pargesa Holding SA 62 0.01 460 CHF Partners Group Holding AG 347 0.04 17,157 CHF Roche Holding AG 4,522 0.49 1,158 CHF Schindler Holding AG 250 0.03 410 CHF Schindler Holding AG, Registered 87 0.01 138 CHF SGS SA 364 0.04 3,160 CHF Sika AG 484 0.05 1,535 CHF Sonova Holding AG 310 0.03 18,570 EUR STMicroelectronics NV 341 0.04 210 CHF Straumann Holding AG 170 0.02 854 CHF Swatch Group AG (The) 261 0.03 1,136 CHF Swatch Group AG (The), Registered 67 0.01 885 CHF Swiss Life Holding AG 416 0.05 1,546 CHF Swiss Prime Site AG 124 0.01 6,820 CHF Swiss Re AG 656 0.07 680 CHF Swisscom AG 317 0.03 1,229 CHF Temenos AG 204 0.02 90,680 CHF UBS Group AG 1,216 0.13 926 CHF Vifor Pharma AG 121 0.01 3,592 CHF Zurich Insurance Group AG 1,145 0.12 Total Switzerland 25,245 2.75
United Arab Emirates: 0.01% 2,112 GBP NMC Health plc 78 0.01 Total United Arab Emirates 78 0.01
United Kingdom: 5.23% 26,350 GBP 3i Group plc 368 0.04 4,084 GBP Admiral Group plc 117 0.01 8,000 GBP Antofagasta plc 95 0.01 12,922 GBP Ashtead Group plc 357 0.04 9,619 GBP Associated British Foods plc 321 0.03 30,763 GBP AstraZeneca plc 2,296 0.25 19,299 GBP Auto Trader Group plc 142 0.02 52 BlackRock Common Contractual Funds
SCHEDULE OF INVESTMENTS (continued) As at 30 April 2019
Fair Value % of Net Holdings Currency Investments USD '000 Asset Value
Equities (continued) United Kingdom (continued) 93,156 GBP Aviva plc 522 0.06 402,564 GBP Barclays plc 862 0.09 20,556 GBP Barratt Developments plc 161 0.02 2,535 GBP Berkeley Group Holdings plc 124 0.01 480,467 GBP BP plc 3,501 0.38 18,840 GBP British Land Co. plc (The), REIT 146 0.02 198,441 GBP BT Group plc 593 0.06 8,951 GBP Bunzl plc 269 0.03 11,353 GBP Burberry Group plc 299 0.03 152,666 GBP Centrica plc 211 0.02 27,591 EUR CNH Industrial NV 299 0.03 5,824 USD Coca-Cola European Partners plc 312 0.03 37,257 GBP Compass Group plc 847 0.09 27,947 GBP ConvaTec Group plc 50 0.01 3,518 GBP Croda International plc 238 0.03 59,750 GBP Diageo plc 2,519 0.27 27,881 GBP Direct Line Insurance Group plc 120 0.01 3,215 GBP easyJet plc 49 0.01 21,527 GBP Experian plc 624 0.07 26,204 EUR Fiat Chrysler Automobiles NV 403 0.04 31,581 GBP G4S plc 89 0.01 120,284 GBP GlaxoSmithKline plc 2,467 0.27 11,139 GBP GVC Holdings plc 95 0.01 15,983 GBP Hammerson plc, REIT 67 0.01 5,772 GBP Hargreaves Lansdown plc 170 0.02 475,681 GBP HSBC Holdings plc 4,137 0.45 33,442 GBP Informa plc 340 0.04 4,650 GBP InterContinental Hotels Group plc 301 0.03 4,361 GBP Intertek Group plc 304 0.03 73,453 GBP ITV plc 131 0.01 35,706 GBP J Sainsbury plc 104 0.01 13,744 GBP John Wood Group plc 84 0.01 3,925 GBP Johnson Matthey plc 171 0.02 43,215 GBP Kingfisher plc 149 0.02 21,194 GBP Land Securities Group plc, REIT 255 0.03 143,315 GBP Legal & General Group plc 520 0.06 3,784 USD Liberty Global plc 'A' 102 0.01 10,131 USD Liberty Global plc 'C' 265 0.03 13,010 USD Linde plc 2,345 0.26 1,656,944 GBP Lloyds Banking Group plc 1,352 0.15 7,619 GBP London Stock Exchange Group plc 498 0.05 32,946 GBP Marks & Spencer Group plc 123 0.01 15,805 GBP Meggitt plc 112 0.01 14,562 GBP Merlin Entertainments plc 70 0.01 7,332 GBP Micro Focus International plc 185 0.02 10,303 GBP Mondi plc 226 0.02 79,947 GBP National Grid plc 871 0.10 3,898 GBP Next plc 293 0.03 53 BlackRock Common Contractual Funds
SCHEDULE OF INVESTMENTS (continued) As at 30 April 2019
Fair Value % of Net Holdings Currency Investments USD '000 Asset Value
Equities (continued) United Kingdom (continued) 21,332 GBP Pearson plc 231 0.03 8,924 GBP Persimmon plc 260 0.03 60,972 GBP Prudential plc 1,379 0.15 15,662 GBP Reckitt Benckiser Group plc 1,265 0.14 46,541 GBP RELX plc 1,067 0.12 27,329 GBP Rio Tinto plc 1,591 0.17 122,051 GBP Royal Bank of Scotland Group plc 381 0.04 18,248 GBP Royal Mail plc 60 0.01 20,821 GBP RSA Insurance Group plc 147 0.02 30,657 GBP Sage Group plc (The) 290 0.03 2,522 GBP Schroders plc 104 0.01 28,772 GBP Segro plc, REIT 254 0.03 4,807 GBP Severn Trent plc 128 0.01 21,295 GBP Smith & Nephew plc 411 0.04 8,025 GBP Smiths Group plc 159 0.02 25,470 GBP SSE plc 380 0.04 66,126 GBP Standard Chartered plc 603 0.07 10,734 GBP St James's Place plc 157 0.02 68,069 GBP Standard Life Aberdeen plc 247 0.03 66,443 GBP Taylor Wimpey plc 157 0.02 11,729 USD TechnipFMC plc 288 0.03 230,370 GBP Tesco plc 750 0.08 35,539 EUR Unilever NV 2,149 0.23 26,359 GBP Unilever plc 1,600 0.17 13,827 GBP United Utilities Group plc 149 0.02 666,566 GBP Vodafone Group plc 1,234 0.14 5,016 GBP Weir Group plc (The) 109 0.01 4,868 GBP Whitbread plc 283 0.03 45,604 GBP Wm Morrison Supermarkets plc 128 0.01 31,432 GBP WPP plc 392 0.04 Total United Kingdom 48,024 5.23
United States: 61.63% 13,837 USD 3M Co. 2,622 0.29 42,595 USD Abbott Laboratories 3,389 0 .37 35,562 USD AbbVie, Inc. 2,823 0.31 1,078 USD ABIOMED, Inc. 299 0.03 15,120 USD Accenture plc 2,762 0.30 17,170 USD Activision Blizzard, Inc. 828 0.09 818 USD Acuity Brands, Inc. 120 0.01 11,572 USD Adobe, Inc. 3,347 0.36 1,913 USD Advance Auto Parts, Inc. 318 0.03 22,126 USD Advanced Micro Devices, Inc. 611 0.07 17,742 USD AES Corp. 304 0.03 1,086 USD Affiliated Managers Group, Inc. 120 0.01 18,215 USD Aflac, Inc. 918 0.10 7,563 USD Agilent Technologies, Inc. 594 0.06 14,159 USD AGNC Investment Corp., REIT 252 0.03 5,202 USD Air Products & Chemicals, Inc. 1,071 0.12 54 BlackRock Common Contractual Funds
SCHEDULE OF INVESTMENTS (continued) As at 30 April 2019
Fair Value % of Net Holdings Currency Investments USD '000 Asset Value
Equities (continued)
United States (continued) 4,445 USD Akamai Technologies, Inc. 356 0.04 1,923 USD Albemarle Corp. 144 0.02 2,685 USD Alexandria Real Estate Equities, Inc., REIT 382 0.04 5,287 USD Alexion Pharmaceuticals, Inc. 720 0.08 1,858 USD Align Technology, Inc. 603 0.07 3,161 USD Alkermes plc 96 0.01 323 USD Alleghany Corp. 212 0.02 1,931 USD Allegion plc 192 0.02 8,060 USD Allergan plc 1,185 0.13 1,005 USD Alliance Data Systems Corp. 161 0.02 6,217 USD Alliant Energy Corp. 294 0.03 8,214 USD Allstate Corp. (The) 814 0.09 8,186 USD Ally Financial, Inc. 243 0.03 1,997 USD Alnylam Pharmaceuticals, Inc. 178 0.02 7,143 USD Alphabet, Inc. 'A' 8,564 0.93 7,526 USD Alphabet, Inc. 'C' 8,945 0.97 9,701 USD Altice USA, Inc. 229 0.02 9,942 USD Amazon.com, Inc. 19,153 2.08 180 USD AMERCO 67 0.01 5,915 USD Ameren Corp. 430 0.05 2,334 USD American Airlines Group, Inc. 80 0.01 11,694 USD American Electric Power Co., Inc. 1,000 0.11 17,372 USD American Express Co. 2,037 0.22 1,541 USD American Financial Group, Inc. 160 0.02 21,078 USD American International Group, Inc. 1,003 0.11 10,458 USD American Tower Corp., REIT 2,042 0.22 4,363 USD American Water Works Co., Inc. 472 0.05 3,477 USD Ameriprise Financial, Inc. 510 0.06 4,142 USD AmerisourceBergen Corp. 310 0.03 5,649 USD AMETEK, Inc. 498 0.05 15,228 USD Amgen, Inc. 2,731 0.30 7,126 USD Amphenol Corp. 709 0.08 12,149 USD Anadarko Petroleum Corp. 885 0.10 8,818 USD Analog Devices, Inc. 1,025 0.11 33,528 USD Annaly Capital Management, Inc., REIT 338 0.04 2,143 USD ANSYS, Inc. 420 0.05 6,167 USD Anthem, Inc. 1,622 0.18 2,939 USD AO Smith Corp. 155 0.02 5,757 USD Aon plc 1,037 0.11 9,974 USD Apache Corp. 328 0.04 113,708 USD Apple, Inc. 22,818 2.48 23,321 USD Applied Materials, Inc. 1,028 0.11 6,396 USD Aptiv plc 548 0.06 5,017 USD Aramark 156 0.02 10,649 USD Arch Capital Group Ltd. 360 0.04 13,279 USD Archer-Daniels-Midland Co. 592 0.06 8,837 USD Arconic, Inc. 190 0.02 1,368 USD Arista Networks, Inc. 427 0.05 55 BlackRock Common Contractual Funds
SCHEDULE OF INVESTMENTS (continued) As at 30 April 2019
Fair Value % of Net Holdings Currency Investments USD '000 Asset Value
Equities (continued)
United States (continued) 1,779 USD Arrow Electronics, Inc. 150 0.02 4,627 USD Arthur J Gallagher & Co. 387 0.04 1,086 USD Assurant, Inc. 103 0.01 174,876 USD AT&T, Inc. 5,414 0.59 3,476 USD Athene Holding Ltd. 157 0.02 2,943 USD Atmos Energy Corp. 301 0.03 5,449 USD Autodesk, Inc. 971 0.11 10,393 USD Automatic Data Processing, Inc. 1,709 0.19 627 USD AutoZone, Inc. 645 0.07 3,279 USD AvalonBay Communities, Inc., REIT 659 0.07 1,777 USD Avery Dennison Corp. 197 0.02 5,832 USD AXA Equitable Holdings, Inc. 132 0.01 4,407 USD Axalta Coating Systems Ltd. 119 0.01 8,016 USD Ball Corp. 480 0.05 223,362 USD Bank of America Corp. 6,830 0.74 23,750 USD Bank of New York Mellon Corp. (The) 1,179 0.13 6,857 CAD Bausch Health Cos., Inc. 158 0.02 12,045 USD Baxter International, Inc. 919 0.10 18,373 USD BB&T Corp. 941 0.10 6,348 USD Becton Dickinson and Co. 1,528 0.17 6,349 USD Best Buy Co., Inc. 472 0.05 4,983 USD Biogen, Inc. 1,142 0.12 4,333 USD BioMarin Pharmaceutical, Inc. 371 0.04 2,838 USD BlackRock, Inc.1 1,377 0.15 1,113 USD Booking Holdings, Inc. 2,065 0.22 4,246 USD BorgWarner, Inc. 177 0.02 3,673 USD Boston Properties, Inc., REIT 505 0.05 32,809 USD Boston Scientific Corp. 1,218 0.13 2,194 USD Brighthouse Financial, Inc. 92 0.01 38,255 USD Bristol-Myers Squibb Co. 1,776 0.19 10,030 USD Broadcom, Inc. 3,194 0.35 3,035 USD Broadridge Financial Solutions, Inc. 359 0.04 3,255 USD Brookfield Property Inc., REIT 68 0.01 6,767 USD Brown-Forman Corp. 361 0.04 4,003 USD Bunge Ltd. 210 0.02 1,776 USD Burlington Stores, Inc. 300 0.03 11,773 USD Cabot Oil & Gas Corp. 305 0.03 7,242 USD Cadence Design Systems, Inc. 502 0.05 2,604 USD Camden Property Trust, REIT 262 0.03 3,667 USD Campbell Soup Co. 142 0.02 11,350 USD Capital One Financial Corp. 1,054 0.11 3,036 USD Capri Holdings Ltd. 134 0.01 7,668 USD Cardinal Health, Inc. 374 0.04 4,666 USD CarMax, Inc. 363 0.04 10,078 USD Carnival Corp. 553 0.06 4,690 GBP Carnival plc 247 0.03
56 BlackRock Common Contractual Funds
SCHEDULE OF INVESTMENTS (continued) As at 30 April 2019
Fair Value % of Net Holdings Currency Investments USD '000 Asset Value
Equities (continued)
United States (continued) 14,100 USD Caterpillar, Inc. 1,966 0.21 2,922 USD Cboe Global Markets, Inc. 297 0.03 8,125 USD CBRE Group, Inc. 423 0.05 8,273 USD CBS Corp. 424 0.05 2,503 USD CDK Global, Inc. 151 0.02 3,894 USD CDW Corp. 411 0.04 3,499 USD Celanese Corp. 378 0.04 16,471 USD Celgene Corp. 1,559 0.17 9,738 USD Centene Corp. 502 0.05 12,276 USD CenterPoint Energy, Inc. 381 0.04 23,700 USD CenturyLink, Inc. 271 0.03 7,230 USD Cerner Corp. 480 0.05 6,286 USD CF Industries Holdings, Inc. 281 0.03 3,574 USD CH Robinson Worldwide, Inc. 289 0.03 28,852 USD Charles Schwab Corp. (The) 1,321 0.14 3,845 USD Charter Communications, Inc. 1,427 0.16 3,600 USD Chemours Co. 130 0.01 5,472 USD Cheniere Energy, Inc. 352 0.04 527 USD Chipotle Mexican Grill, Inc. 363 0.04 10,990 USD Chubb Ltd. 1,596 0.17 5,970 USD Church & Dwight Co., Inc. 447 0.05 8,829 USD Cigna Corp. 1,402 0.15 1,939 USD Cimarex Energy Co. 133 0.01 3,982 USD Cincinnati Financial Corp. 383 0.04 2,223 USD Cintas Corp. 483 0.05 107,627 USD Cisco Systems, Inc. 6,022 0.66 2,303 USD CIT Group, Inc. 123 0.01 58,752 USD Citigroup, Inc. 4,154 0.45 12,041 USD Citizens Financial Group, Inc. 436 0.05 3,368 USD Citrix Systems, Inc. 340 0.04 3,039 USD Clorox Co. (The) 485 0.05 8,314 USD CME Group, Inc. 1,487 0.16 6,990 USD CMS Energy Corp. 388 0.04 97,375 USD Coca-Cola Co. 4,777 0.52 3,502 USD Cognex Corp. 177 0.02 13,848 USD Cognizant Technology Solutions Corp. 1,010 0.11 19,542 USD Colgate-Palmolive Co. 1,422 0.15 108,130 USD Comcast Corp. 4,707 0.51 3,210 USD Comerica, Inc. 252 0.03 3,912 USD CommScope Holding Co., Inc. 97 0.01 12,462 USD Conagra Brands, Inc. 384 0.04 4,751 USD Concho Resources, Inc. 548 0.06 27,570 USD ConocoPhillips 1,740 0.19 7,381 USD Consolidated Edison, Inc. 636 0.07 3,694 USD Constellation Brands, Inc. 782 0.09 1,913 USD Continental Resources, Inc. 88 0.01
57 BlackRock Common Contractual Funds
SCHEDULE OF INVESTMENTS (continued) As at 30 April 2019
Fair Value % of Net Holdings Currency Investments USD '000 Asset Value
Equities (continued)
United States (continued) 1,259 USD Cooper Cos., Inc. (The) 365 0.04 5,619 USD Copart, Inc. 378 0.04 19,217 USD Corning, Inc. 612 0.07 941 USD CoStar Group, Inc. 467 0.05 10,366 USD Costco Wholesale Corp. 2,545 0.28 9,922 USD Coty, Inc. 107 0.01 9,842 USD Crown Castle International Corp., REIT 1,238 0.13 2,752 USD Crown Holdings, Inc. 160 0.02 19,356 USD CSX Corp. 1,541 0.17 3,682 USD Cummins, Inc. 612 0.07 31,723 USD CVS Health Corp. 1,725 0.19 14,912 USD Danaher Corp. 1,975 0.21 3,141 USD Darden Restaurants, Inc. 369 0.04 2,715 USD DaVita, Inc. 150 0.02 7,244 USD Deere & Co. 1,200 0.13 4,079 USD Dell Technologies, Inc. 275 0.03 3,503 USD Delta Air Lines, Inc. 204 0.02 4,520 USD DENTSPLY SIRONA, Inc. 231 0.03 10,167 USD Devon Energy Corp. 327 0.04 2,359 USD DexCom, Inc. 286 0.03 3,900 USD Diamondback Energy, Inc. 415 0.05 4,889 USD Digital Realty Trust, Inc., REIT 575 0.06 8,129 USD Discover Financial Services 662 0.07 3,177 USD Discovery, Inc. 'A' 98 0.01 6,214 USD Discovery, Inc. 'C' 179 0.02 4,657 USD DISH Network Corp. 'A' 164 0.02 6,300 USD Dollar General Corp. 794 0.09 5,644 USD Dollar Tree, Inc. 628 0.07 18,341 USD Dominion Energy, Inc. 1,428 0.16 1,073 USD Domino's Pizza, Inc. 290 0.03 3,872 USD Dover Corp. 380 0.04 55,902 USD DowDuPont, Inc. 2,149 0.23 9,077 USD DR Horton, Inc. 402 0.04 4,312 USD DTE Energy Co. 542 0.06 16,900 USD Duke Energy Corp. 1,540 0.17 9,607 USD Duke Realty Corp., REIT 299 0.03 6,881 USD DXC Technology Co. 452 0.05 6,756 USD E*TRADE Financial Corp. 342 0.04 2,950 USD East West Bancorp, Inc. 152 0.02 3,772 USD Eastman Chemical Co. 298 0.03 10,797 USD Eaton Corp. plc 894 0.10 2,403 USD Eaton Vance Corp. 100 0.01 22,306 USD eBay, Inc. 864 0.09 6,189 USD Ecolab, Inc. 1,139 0.12 7,742 USD Edison International 494 0.05 4,968 USD Edwards Lifesciences Corp. 875 0.10 7,232 USD Electronic Arts, Inc. 685 0.07
58 BlackRock Common Contractual Funds
SCHEDULE OF INVESTMENTS (continued) As at 30 April 2019
Fair Value % of Net Holdings Currency Investments USD '000 Asset Value
Equities (continued)
United States (continued) 21,722 USD Eli Lilly & Co. 2,542 0.28 14,910 USD Emerson Electric Co. 1,058 0.12 4,415 USD Entergy Corp. 428 0.05 13,741 USD EOG Resources, Inc. 1,320 0.14 1,984 USD Equinix, Inc., REIT 902 0.10 8,737 USD Equity Residential, REIT 668 0.07 1,592 USD Essex Property Trust, Inc., REIT 450 0.05 5,058 USD Estee Lauder Cos., Inc. (The) 869 0.09 1,124 USD Everest Re Group Ltd. 265 0.03 6,628 USD Evergy, Inc. 383 0.04 7,518 USD Eversource Energy 539 0.06 22,915 USD Exelon Corp. 1,168 0.13 3,051 USD Expedia Group, Inc. 396 0.04 4,476 USD Expeditors International of Washington, Inc. 355 0.04 3,258 USD Extra Space Storage, Inc., REIT 338 0.04 101,442 USD Exxon Mobil Corp. 8,144 0.89 1,623 USD F5 Networks, Inc. 255 0.03 57,790 USD Facebook, Inc. 11,177 1.22 7,065 USD Fastenal Co. 498 0.05 2,007 USD Federal Realty Investment Trust, REIT 269 0.03 5,963 USD FedEx Corp. 1,130 0.12 5,730 GBP Ferguson plc 406 0.04 5,963 USD Fidelity National Financial, Inc. 238 0.03 7,801 USD Fidelity National Information Services, Inc. 904 0.10 18,956 USD Fifth Third BanCorp. 546 0.06 11,404 USD First Data Corp. 295 0.03 4,126 USD First Republic Bank 436 0.05 11,589 USD FirstEnergy Corp. 487 0.05 8,980 USD Fiserv, Inc. 783 0.09 2,156 USD FleetCor Technologies, Inc. 563 0.06 10,844 USD Flex Ltd. 120 0.01 2,806 USD FLIR Systems, Inc. 149 0.02 2,660 USD Flowserve Corp. 130 0.01 3,579 USD FMC Corp. 283 0.03 92,086 USD Ford Motor Co. 962 0.10 3,841 USD Fortinet, Inc. 359 0.04 7,122 USD Fortive Corp. 615 0.07 2,895 USD Fortune Brands Home & Security, Inc. 153 0.02 5,913 USD Franklin Resources, Inc. 205 0.02 4,727 USD Gap, Inc. (The) 123 0.01 2,303 USD Garmin Ltd. 197 0.02 2,331 USD Gartner, Inc. 371 0.04 14,139 USD General Mills, Inc. 728 0.08 30,806 USD General Motors Co. 1,200 0.13 3,714 USD Genuine Parts Co. 381 0.04 30,388 USD Gilead Sciences, Inc. 1,976 0.21
59 BlackRock Common Contractual Funds
SCHEDULE OF INVESTMENTS (continued) As at 30 April 2019
Fair Value % of Net Holdings Currency Investments USD '000 Asset Value
Equities (continued)
United States (continued) 3,852 USD Global Payments, Inc. 563 0.06 4,406 USD GoDaddy, Inc. 359 0.04 8,119 USD Goldman Sachs Group, Inc. (The) 1,672 0.18 4,819 USD Goodyear Tire & Rubber Co. (The) 93 0.01 1,841 USD GrubHub, Inc. 123 0.01 4,177 USD H&R Block, Inc. 114 0.01 20,875 USD Halliburton Co. 591 0.06 7,329 USD Hanesbrands, Inc. 132 0.01 3,386 USD Harley-Davidson, Inc. 126 0.01 8,807 USD Hartford Financial Services Group, Inc. (The) 461 0.05 3,233 USD Hasbro, Inc. 329 0.04 6,570 USD HCA Healthcare, Inc. 836 0.09 11,739 USD HCP, Inc., REIT 350 0.04 3,552 USD HD Supply Holdings, Inc. 162 0.02 2,215 USD Helmerich & Payne, Inc. 130 0.01 3,926 USD Henry Schein, Inc. 251 0.03 3,615 USD Hershey Co. (The) 451 0.05 6,843 USD Hess Corp. 439 0.05 35,163 USD Hewlett Packard Enterprise Co. 556 0.06 6,715 USD Hilton Worldwide Holdings, Inc. 584 0.06 4,630 USD HollyFrontier Corp. 221 0.02 7,133 USD Hologic, Inc. 331 0.04 27,066 USD Home Depot, Inc. (The) 5,513 0.60 7,418 USD Hormel Foods Corp. 296 0.03 18,733 USD Host Hotels & Resorts, Inc., REIT 360 0.04 37,541 USD HP, Inc. 749 0.08 3,268 USD Humana, Inc. 835 0.09 27,914 USD Huntington Bancshares, Inc. 389 0.04 1,979 USD InterActiveCorp 445 0.05 2,059 USD IDEX Corp. 323 0.04 2,103 USD IDEXX Laboratories, Inc. 488 0.05 9,312 USD IHS Markit Ltd. 533 0.06 7,190 USD Illinois Tool Works, Inc. 1,119 0.12 3,487 USD Illumina, Inc. 1,088 0.12 3,669 USD Incyte Corp. 282 0.03 5,820 USD Ingersoll-Rand plc 714 0.08 1,446 USD Ingredion, Inc. 137 0.01 109,402 USD Intel Corp. 5,584 0.61 13,604 USD Intercontinental Exchange, Inc. 1,107 0.12 21,536 USD International Business Machines Corp. 3,021 0.33 2,219 USD International Flavors & Fragrances, Inc. 306 0.03 9,459 USD International Paper Co. 443 0.05 10,860 USD Interpublic Group of Cos., Inc. (The) 250 0.03 5,778 USD Intuit, Inc. 1,451 0.16 2,699 USD Intuitive Surgical, Inc. 1,378 0.15 8,353 USD Invesco Ltd. 184 0.02 6,357 USD Invitation Homes, Inc., REIT 158 0.02
60 BlackRock Common Contractual Funds
SCHEDULE OF INVESTMENTS (continued) As at 30 April 2019
Fair Value % of Net Holdings Currency Investments USD '000 Asset Value
Equities (continued)
United States (continued) 765 USD IPG Photonics Corp. 134 0.01 3,852 USD IQVIA Holdings, Inc. 535 0.06 7,461 USD Iron Mountain, Inc., REIT 242 0.03 2,070 USD Jack Henry & Associates, Inc. 309 0.03 1,695 USD Jazz Pharmaceuticals plc 220 0.02 2,463 USD JB Hunt Transport Services, Inc. 233 0.03 6,099 USD Jefferies Financial Group, Inc. 125 0.01 2,973 USD JM Smucker Co. (The) 365 0.04 63,882 USD Johnson & Johnson 9,020 0.98 23,178 USD Johnson Controls International plc 869 0.09 927 USD Jones Lang LaSalle, Inc. 143 0.02 79,994 USD JPMorgan Chase & Co. 9,283 1.01 9,441 USD Juniper Networks, Inc. 262 0.03 2,749 USD Kansas City Southern 339 0.04 6,378 USD Kellogg Co. 385 0.04 25,736 USD KeyCorp 452 0.05 4,869 USD Keysight Technologies, Inc. 424 0.05 8,252 USD Kimberly-Clark Corp. 1,059 0.12 8,567 USD Kimco Realty Corp., REIT 149 0.02 48,822 USD Kinder Morgan, Inc. 970 0.11 3,962 USD KLA-Tencor Corp. 505 0.05 2,719 USD Knight-Swift Transportation Holdings, Inc. 91 0.01 4,427 USD Kohl's Corp. 315 0.03 15,352 USD Kraft Heinz Co. (The) 510 0.06 18,900 USD Kroger Co. (The) 487 0.05 4,790 USD L Brands, Inc. 123 0.01 1,957 USD L3 Technologies, Inc. 428 0.05 2,565 USD Laboratory Corp. of America Holdings 410 0.04 3,738 USD Lam Research Corp. 775 0.08 3,827 USD Lamb Weston Holdings, Inc. 268 0.03 9,480 USD Las Vegas Sands Corp. 636 0.07 1,199 USD Lear Corp. 171 0.02 2,646 USD Leggett & Platt, Inc. 104 0.01 7,498 USD Lennar Corp. 390 0.04 704 USD Lennox International, Inc. 191 0.02 3,014 USD Liberty Broadband Corp. 298 0.03 4,128 USD Liberty Media Corp-Liberty Formula One 'C' 160 0.02 1,778 USD Liberty Media Corp-Liberty SiriusXM 'A' 71 0.01 2,936 USD Liberty Media Corp-Liberty SiriusXM 'C' 118 0.01 3,009 USD Liberty Property Trust, REIT 149 0.02 4,284 USD Lincoln National Corp. 286 0.03 2,901 USD Live Nation Entertainment, Inc. 190 0.02 6,467 USD LKQ Corp. 195 0.02 7,146 USD Loews Corp. 367 0.04 19,240 USD Lowe's Cos., Inc. 2,177 0.24 2,561 USD Lululemon Athletica, Inc. 452 0.05 7,855 USD LyondellBasell Industries NV 693 0.08
61 BlackRock Common Contractual Funds
SCHEDULE OF INVESTMENTS (continued) As at 30 April 2019
Fair Value % of Net Holdings Currency Investments USD '000 Asset Value
Equities (continued)
United States (continued) 3,238 USD M&T Bank Corp. 551 0.06 2,151 USD Macerich Co. (The), REIT 86 0.01 8,311 USD Macy's, Inc. 196 0.02 1,321 USD ManpowerGroup, Inc. 127 0.01 21,878 USD Marathon Oil Corp. 373 0.04 16,396 USD Marathon Petroleum Corp. 998 0.11 347 USD Markel Corp. 372 0.04 6,574 USD Marriott International, Inc. 897 0.10 11,980 USD Marsh & McLennan Cos., Inc. 1,130 0.12 1,645 USD Martin Marietta Materials, Inc. 365 0.04 16,803 USD Marvell Technology Group Ltd. 420 0.05 6,193 USD Masco Corp. 242 0.03 21,856 USD Mastercard, Inc. 5,557 0.60 6,997 USD Mattel, Inc. 85 0.01 6,941 USD Maxim Integrated Products, Inc. 416 0.05 2,908 USD McCormick & Co., Inc. (Non-Voting) 448 0.05 18,308 USD McDonald's Corp. 3,617 0.39 4,739 USD McKesson Corp. 565 0.06 31,850 USD Medtronic plc 2,829 0.31 62,550 USD Merck & Co., Inc. 4,923 0.54 20,011 USD MetLife, Inc. 923 0.10 627 USD Mettler-Toledo International, Inc. 467 0.05 12,889 USD MGM Resorts International 343 0.04 5,680 USD Microchip Technology, Inc. 567 0.06 27,548 USD Micron Technology, Inc. 1,159 0.13 174,620 USD Microsoft Corp. 22,805 2.48 2,968 USD Mid-America Apartment Communities, Inc., REIT 325 0.04 1,134 USD Middleby Corp. 150 0.02 1,289 USD Mohawk Industries, Inc. 176 0.02 4,932 USD Molson Coors Brewing Co. 317 0.03 34,530 USD Mondelez International, Inc. 1,756 0.19 9,837 USD Monster Beverage Corp. 586 0.06 4,099 USD Moody's Corp. 806 0.09 31,039 USD Morgan Stanley 1,498 0.16 9,564 USD Mosaic Co. (The) 250 0.03 3,850 USD Motorola Solutions, Inc. 558 0.06 12,711 USD Mylan NV 343 0.04 3,109 USD Nasdaq, Inc. 287 0.03 10,209 USD National Oilwell Varco, Inc. 267 0.03 4,512 USD National Retail Properties, Inc., REIT 237 0.03 3,812 USD Nektar Therapeutics 122 0.01 6,307 USD NetApp, Inc. 459 0.05 10,538 USD Netflix, Inc. 3,905 0.42 12,609 USD Newell Brands, Inc. 181 0.02 12,726 USD Newmont GoldCorp. Corp. 395 0.04 7,941 CAD Newmont GoldCorp. Corp. 244 0.03 7,794 USD News Corp. 97 0.01
62 BlackRock Common Contractual Funds
SCHEDULE OF INVESTMENTS (continued) As at 30 April 2019
Fair Value % of Net Holdings Currency Investments USD '000 Asset Value
Equities (continued)
United States (continued) 11,188 USD NextEra Energy, Inc. 2,175 0.24 9,821 USD Nielsen Holdings plc 251 0.03 30,168 USD Nike, Inc. 2,650 0.29 9,808 USD NiSource, Inc. 272 0.03 12,953 USD Noble Energy, Inc. 351 0.04 2,384 USD Nordstrom, Inc. 98 0.01 6,643 USD Norfolk Southern Corp. 1,355 0.15 5,081 USD Northern Trust Corp. 501 0.05 5,843 USD Norwegian Cruise Line Holdings Ltd. 329 0.04 7,741 USD NRG Energy, Inc. 319 0.03 7,917 USD Nucor Corp. 452 0.05 13,680 USD NVIDIA Corp. 2,476 0.27 96 USD NVR, Inc. 303 0.03 18,142 USD Occidental Petroleum Corp. 1,068 0.12 5,666 USD OGE Energy Corp. 240 0.03 1,161 USD Old Dominion Freight Line, Inc. 173 0.02 5,426 USD Omnicom Group, Inc. 434 0.05 7,898 USD ON Semiconductor Corp. 182 0.02 9,757 USD ONEOK, Inc. 663 0.07 62,941 USD Oracle Corp. 3,483 0.38 1,911 USD O'Reilly Automotive, Inc. 723 0.08 2,258 USD Owens Corning 116 0.01 8,316 USD PACCAR, Inc. 596 0.06 1,921 USD Packaging Corp. of America 190 0.02 2,253 USD Palo Alto Networks, Inc. 561 0.06 3,140 USD Parker-Hannifin Corp. 569 0.06 5,124 USD Parsley Energy, Inc. 102 0.01 7,666 USD Paychex, Inc. 646 0.07 26,573 USD PayPal Holdings, Inc. 2,997 0.33 3,388 USD Pentair plc 132 0.01 7,753 USD People's United Financial, Inc. 134 0.01 34,178 USD PepsiCo, Inc. 4,376 0.48 2,643 USD Perrigo Co. plc 127 0.01 139,066 USD Pfizer, Inc. 5,647 0.61 10,468 USD Phillips 66 987 0.11 3,004 USD Pinnacle West Capital Corp. 286 0.03 4,043 USD Pioneer Natural Resources Co. 673 0.07 3,054 USD Plains GP Holdings LP 72 0.01 11,015 USD PNC Financial Services Group, Inc. (The) 1,508 0.16 1,204 USD Polaris Industries, Inc. 116 0.01 5,742 USD PPG Industries, Inc. 675 0.07 16,597 USD PPL Corp. 518 0.06 7,262 USD Principal Financial Group Inc. 415 0.05 59,592 USD Procter & Gamble Co. (The) 6,345 0.69 13,834 USD Progressive Corp. (The) 1,081 0.12 14,947 USD Prologis, Inc., REIT 1,146 0.12 9,893 USD Prudential Financial, Inc. 1,046 0.11
63 BlackRock Common Contractual Funds
SCHEDULE OF INVESTMENTS (continued) As at 30 April 2019
Fair Value % of Net Holdings Currency Investments USD '000 Asset Value
Equities (continued)
United States (continued) 3,048 USD PTC, Inc. 276 0.03 11,988 USD Public Service Enterprise Group, Inc. 715 0.08 3,861 USD Public Storage, REIT 854 0.09 5,486 USD PulteGroup, Inc. 173 0.02 1,567 USD PVH Corp. 202 0.02 6,507 EUR QIAGEN NV 251 0.03 2,554 USD Qorvo, Inc. 193 0.02 29,408 USD QUALCOMM, Inc. 2,533 0.28 3,547 USD Quest Diagnostics, Inc. 342 0.04 12,050 USD Qurate Retail, Inc. 205 0.02 1,123 USD Ralph Lauren Corp. 148 0.02 3,547 USD Raymond James Financial, Inc. 325 0.04 6,885 USD Realty Income Corp., REIT 482 0.05 4,405 USD Red Hat, Inc. 804 0.09 4,185 USD Regency Centers Corp., REIT 281 0.03 1,975 USD Regeneron Pharmaceuticals, Inc. 678 0.07 27,287 USD Regions Financial Corp. 424 0.05 1,295 USD Reinsurance Group of America, Inc. 196 0.02 5,504 USD Republic Services, Inc. 456 0.05 3,472 USD ResMed, Inc. 363 0.04 2,489 USD Robert Half International, Inc. 155 0.02 2,923 USD Rockwell Automation, Inc. 528 0.06 2,994 USD Rollins, Inc. 116 0.01 2,336 USD Roper Technologies, Inc. 840 0.09 9,302 USD Ross Stores, Inc. 908 0.10 4,013 USD Royal Caribbean Cruises Ltd. 485 0.05 5,967 USD S&P Global, Inc. 1,317 0.14 5,600 USD Sabre Corp. 116 0.01 18,559 USD salesforce.com, Inc. 3,069 0.33 2,725 USD SBA Communications Corp., REIT 'A' 555 0.06 32,837 USD Schlumberger Ltd. 1,401 0.15 7,269 USD Seagate Technology plc 351 0.04 3,229 USD Sealed Air Corp. 151 0.02 2,455 USD Seattle Genetics, Inc. 166 0.02 2,713 USD SEI Investments Co. 148 0.02 6,075 USD Sempra Energy 777 0.08 3,454 USD Sensata Technologies Holding plc 172 0.02 4,280 USD ServiceNow, Inc. 1,162 0.13 2,065 USD Sherwin-Williams Co. (The) 939 0.10 1,127 USD Signature Bank 149 0.02 7,236 USD Simon Property Group, Inc., REIT 1,257 0.14 42,422 USD Sirius XM Holdings, Inc. 246 0.03 4,574 USD Skyworks Solutions, Inc. 403 0.04 1,760 USD SL Green Realty Corp., REIT 155 0.02 1,566 USD Snap-on, Inc. 264 0.03 24,059 USD Southern Co. (The) 1,280 0.14 2,904 USD Southwest Airlines Co. 157 0.02
64 BlackRock Common Contractual Funds
SCHEDULE OF INVESTMENTS (continued) As at 30 April 2019
Fair Value % of Net Holdings Currency Investments USD '000 Asset Value
Equities (continued)
United States (continued) 2,036 USD Spirit AeroSystems Holdings, Inc. 'A' 177 0.02 3,580 USD Splunk, Inc. 494 0.05 16,562 USD Sprint Corp. 92 0.01 7,257 USD Square, Inc. 528 0.06 5,831 USD SS&C Technologies Holdings, Inc. 395 0.04 3,646 USD Stanley Black & Decker, Inc. 535 0.06 30,098 USD Starbucks Corp. 2,338 0.25 9,001 USD State Street Corp. 609 0.07 4,779 USD Steel Dynamics, Inc. 151 0.02 7,994 USD Stryker Corp. 1,510 0.16 10,930 USD SunTrust Banks, Inc. 716 0.08 1,421 USD SVB Financial Group 358 0.04 15,738 USD Symantec Corp. 381 0.04 14,958 USD Synchrony Financial 519 0.06 3,772 USD Synopsys, Inc. 457 0.05 12,167 USD Sysco Corp. 856 0.09 5,769 USD T Rowe Price Group, Inc. 620 0.07 1,755 USD Tableau Software, Inc. 214 0.02 2,936 USD Take-Two Interactive Software, Inc. 284 0.03 7,709 USD Tapestry, Inc. 249 0.03 6,236 USD Targa Resources Corp. 250 0.03 11,854 USD Target Corp. 918 0.10 7,271 USD TD Ameritrade Holding Corp. 382 0.04 8,267 USD TE Connectivity Ltd. 791 0.09 1,194 USD Teleflex, Inc. 342 0.04 3,078 USD Tesla, Inc. 735 0.08 22,913 USD Texas Instruments, Inc. 2,700 0.29 9,513 USD Thermo Fisher Scientific, Inc. 2,639 0.29 2,204 USD Tiffany & Co. 238 0.03 29,450 USD TJX Cos., Inc. (The) 1,616 0.18 8,154 USD T-Mobile US, Inc. 595 0.06 3,002 USD Torchmark Corp. 263 0.03 4,131 USD Total System Services, Inc. 422 0.05 3,222 USD Tractor Supply Co. 333 0.04 1,151 USD TransDigm Group, Inc. 555 0.06 4,926 USD TransUnion 343 0.04 6,580 USD Travelers Cos., Inc. (The) 946 0.10 7,031 USD Trimble, Inc. 287 0.03 2,156 USD TripAdvisor, Inc. 115 0.01 16,169 USD Twitter, Inc. 645 0.07 7,243 USD Tyson Foods, Inc. 'A' 543 0.06 7,001 USD UDR, Inc., REIT 315 0.03 4,713 USD UGI Corp. 257 0.03 1,421 USD Ulta Beauty, Inc. 496 0.05 3,783 USD Under Armour, Inc. 'A' 87 0.01 3,878 USD Under Armour, Inc. 'C' 80 0.01 17,441 USD Union Pacific Corp. 3,088 0.34
65 BlackRock Common Contractual Funds
SCHEDULE OF INVESTMENTS (continued) As at 30 April 2019
Fair Value % of Net Holdings Currency Investments USD '000 Asset Value
Equities (continued)
United States (continued) 1,382 USD United Continental Holdings, Inc. 123 0.01 16,313 USD United Parcel Service, Inc. 'B' 1,733 0.19 2,297 USD United Rentals, Inc. 324 0.04 887 USD United Therapeutics Corp. 91 0.01 22,988 USD UnitedHealth Group, Inc. 5,357 0.58 2,287 USD Universal Health Services, Inc. 'B' 290 0.03 4,832 USD Unum Group 178 0.02 36,721 USD US BanCorp. 1,958 0.21 1,101 USD Vail Resorts, Inc. 252 0.03 10,551 USD Valero Energy Corp. 957 0.10 2,418 USD Varian Medical Systems, Inc. 329 0.04 3,187 USD Veeva Systems, Inc. 'A' 446 0.05 8,456 USD Ventas, Inc., REIT 517 0.06 17,764 USD VEREIT, Inc., REIT 147 0.02 2,660 USD VeriSign, Inc. 525 0.06 3,760 USD Verisk Analytics, Inc. 531 0.06 98,983 USD Verizon Communications, Inc. 5,661 0.62 6,063 USD Vertex Pharmaceuticals, Inc. 1,025 0.11 7,999 USD VF Corp. 755 0.08 9,577 USD Viacom, Inc. 'B' 277 0.03 42,221 USD Visa, Inc. 'A' 6,942 0.76 6,212 USD Vistra Energy Corp. 169 0.02 1,955 USD VMware, Inc. 399 0.04 4,451 USD Vornado Realty Trust, REIT 308 0.03 3,268 USD Voya Financial, Inc. 179 0.02 3,351 USD Vulcan Materials Co. 423 0.05 1,077 USD WABCO Holdings, Inc. 143 0.02 3,335 USD Wabtec Corp. 247 0.03 18,618 USD Walgreens Boots Alliance, Inc. 997 0.11 42,951 USD Walt Disney Co. (The) 5,882 0.64 6,189 USD Waste Connections, Inc. 574 0.06 10,237 USD Waste Management, Inc. 1,099 0.12 1,921 USD Waters Corp. 410 0.04 1,154 USD Wayfair, Inc. 187 0.02 7,486 USD WEC Energy Group, Inc. 587 0.06 1,265 USD WellCare Health Plans, Inc. 327 0.04 8,826 USD Welltower, Inc., REIT 658 0.07 7,583 USD Western Digital Corp. 388 0.04 9,093 USD Western Union Co. (The) 177 0.02 792 USD Westlake Chemical Corp. 55 0.01 6,784 USD Westrock Co. 260 0.03 18,123 USD Weyerhaeuser Co., REIT 486 0.05 1,811 USD Whirlpool Corp. 251 0.03 27,125 USD Williams Cos., Inc. (The) 768 0.08 3,102 USD Willis Towers Watson plc 572 0.06 3,518 USD Workday, Inc. 'A' 723 0.08 7,041 USD Worldpay, Inc. 'A' 825 0.09
66 BlackRock Common Contractual Funds
SCHEDULE OF INVESTMENTS (continued) As at 30 April 2019
Fair Value % of Net Holdings Currency Investments USD '000 Asset Value
Equities (continued)
United States (continued) 4,208 USD WP Carey, Inc., REIT 334 0.04 2,974 USD WR Berkley Corp. 182 0.02 1,198 USD WW Grainger, Inc. 338 0.04 2,612 USD Wynn Resorts Ltd. 377 0.04 12,078 USD Xcel Energy, Inc. 682 0.07 4,668 USD Xerox Corp. 156 0.02 6,000 USD Xilinx, Inc. 721 0.08 2,582 USD XPO Logistics, Inc. 176 0.02 4,650 USD Xylem, Inc. 388 0.04 7,081 USD Yum! Brands, Inc. 739 0.08 4,267 USD Zayo Group Holdings, Inc. 134 0.01 2,531 USD Zillow Group, Inc. 'C' 85 0.01 4,828 USD Zimmer Biomet Holdings, Inc. 595 0.06 5,360 USD Zions BanCorp. NA 264 0.03 11,431 USD Zoetis, Inc. 1,164 0.12 Total United States 566,268 61.63
Total investments in equities 908,559 98.88
Maturity Fair Value % of Net Description Counterparty Date USD '000 Asset Value
Forward currency contracts2
Buy EUR 1,435,875;Sell SEK 15,215,584 State Street 04/06/2019 9 - Buy EUR 12,575,035;Sell JPY 1,567,266,501 State Street 04/06/2019 22 - Buy EUR 129,098;Sell NZD 216,719 State Street 04/06/2019 - - Buy EUR 2,022,737;Sell HKD 17,754,522 State Street 04/06/2019 9 - Buy EUR 3,371,181;Sell AUD 5,355,721 State Street 04/06/2019 15 - Buy EUR 3,768,194;Sell CHF 4,286,237 State Street 04/06/2019 15 - Buy EUR 382,238;Sell NOK 3,704,995 State Street 04/06/2019 1 - Buy EUR 5,324,411;Sell CAD 8,023,126 State Street 04/06/2019 14 - Buy EUR 734,336;Sell SGD 1,117,934 State Street 04/06/2019 3 - Buy EUR 91,942,004;Sell USD 102,941,025 State Street 04/06/2019 367 0.05 Total unrealised gain on forward currency contracts 455 0.05
Forward currency contracts2
Buy EUR 144,122;Sell ILS 582,916 State Street 04/06/2019 - - Buy EUR 7,219,998;Sell GBP 6,237,984 State Street 04/06/2019 (33) - Buy EUR 919,288;Sell DKK 6,861,415 State Street 04/06/2019 - - Total unrealised loss on forward currency contracts (33) -
67 BlackRock Common Contractual Funds
SCHEDULE OF INVESTMENTS (continued) As at 30 April 2019
Number of Maturity Fair Value % of Net Contracts Currency Notional Description Date USD '000 Asset Value
Futures contracts
Australia
3 AUD 332,780 SPI 200 Index 20/06/2019 4 - Total Australia 4 -
Canada
2 CAD 295,391 S&P Canada 60 Index 20/06/2019 10 - Total Canada 10 -
Germany
38 EUR 1,470,090 EURO STOXX 50 Index 21/06/2019 67 0.01 Total Germany 67 0.01
Japan
5 JPY 725,028 TOPIX Index 13/06/2019 8 - Total Japan 8 -
United Kingdom
6 GBP 576,591 FTSE 100 Index 21/06/2019 16 - Total United Kingdom 16 -
United States
37 USD 5,454,725 S&P 500 E-Mini Index 21/06/2019 199 0.02 Total United States 199 0.02
Total unrealised gain on futures contracts 304 0.03
Fair Value % of Net USD '000 Asset Value
Total financial assets at fair value through profit or loss 909,318 98.96 Total financial liabilities at fair value through profit or loss (33) - Cash 7,399 0.81 Other assets and liabilities 2,154 0.23 Net asset value attributable to redeemable participating unitholders 918,838 100.00
68 BlackRock Common Contractual Funds
SCHEDULE OF INVESTMENTS (continued) As at 30 April 2019
% of Total Analysis of total assets Assets Transferable securities admitted to official stock exchange listing 98.85 Financial derivative instruments dealt in on a regulated market 0.03 OTC financial derivative instruments 0.05 Other assets 1.07 Total assets 100.00
1A related party to the Fund. 2Forward currency contracts held with one counterparty that have the same buy currency, sell currency and maturity date are presented on an aggregate basis where applicable. There is no netting of asset and liability positions.
Underlying exposure On gains On losses USD '000 USD '000 Forward currency contracts 136,374 9,324 Futures 8,855
69 BlackRock Common Contractual Funds
SCHEDULES OF MATERIAL PURCHASES AND SALES For the financial period ended 30 April 2019
Purchases CostSales Proceeds Quantity Investment USD '000 Quantity Investment USD '000 117,056 Apple, Inc. 19,433 18,634 Dow Inc, Com 1,047 176,319 Microsoft Corp. 18,678 7,042 Express Scripts Holding Company 650 10,042 Amazon.com, Inc. 16,010 3,348 Apple, Inc. 609 65,171 Johnson & Johnson 8,768 10,021 Shire plc 598 58,604 Facebook, Inc. 8,339 9,320 Oracle Corp. 488 81,048 JPMorgan Chase & Co. 8,159 9,393 Twenty-First Century Fox, Inc. 'A' 467 7,602 Alphabet, Inc. 'C' 7,928 8,335 Fox Corp. Com 'A' 321 102,538 Exxon Mobil Corp. 7,709 3,904 Dell Technologies, Inc. 'V' 312 7,218 Alphabet, Inc. 'A' 7,601 5,704 Cisco Systems, Inc. 299 75,113 Nestle SA 6,300 5,399 QUALCOMM, Inc. 288 142,172 Pfizer, Inc. 6,221 2,653 Randgold Resources 220 23,353 UnitedHealth Group, Inc. 6,168 1,782 Eli Lilly & Co. 220 42,792 Visa, Inc. 'A' 5,790 2,963 Starbucks Corp. 208 60,448 Procter & Gamble Co. (The) 5,763 1,699 Microsoft Corp. 201 100,430 Verizon Communications, Inc. 5,719 6,922 Bank of America Corp. 196 230,284 Bank of America Corp. 5,711 3,915 Twenty-First Century Fox, Inc. 'B' 194 111,059 Intel Corp. 5,293 100 Amazon.com, Inc. 180 174,876 AT&T, Inc. 5,262 1,289 Johnson & Johnson 179 113,331 Cisco Systems, Inc. 5,198 732 Goldman Sachs Group, Inc. (The) 144 64,068 Merck & Co., Inc. 4,895 814 Facebook, Inc. 136
The CBI requires a schedule of material changes in the composition of the portfolio during the financial period. These are defined as aggregate purchases of a security exceeding one per cent of the total value of purchases for the financial period and aggregate disposals greater than one per cent of the total value of sales. At a minimum the largest 20 purchases and 20 sales must be given or all purchases and sales if less than 20. A full listing of the portfolio changes for the financial period is available, upon request, at no cost from the Administrator.
70 BlackRock Common Contractual Funds
ADDITIONAL INFORMATION AND REGULATORY DISCLOSURES (UNAUDITED)
TRANSACTIONS WITH CONNECTED PERSONS
In accordance with the requirements of the CBI, the Manager shall ensure that any transactions carried out between the Fund and the Manager or Depositary to a Fund, the delegates or sub-delegates of the Manager or Depositary (excluding any non-group company sub-custodians appointed by a Depositary) and any associated or group company of the Manager, Depositary, delegate or sub-delegate (“Connected Persons”) must be conducted at arm’s length and in the best interests of the unitholders.
The Directors are satisfied that there are arrangements in place, as evidenced by written procedures, to ensure that the obligations set out above are applied to all transactions with Connected Persons and that transactions with Connected Persons entered into during the financial period complied with this obligation.
TRANSACTION COSTS
Disclosed in the table below are separately identifiable transaction costs incurred by the Fund for the financial period ended 30 April 2019. These include all brokers’ commission, settlement fees, stamp duties and broker fees charges on equities and exchange traded futures contracts.
Value Fund Currency '000 CCF Developed World (ESG Screened) Index Fund^ USD (2)
^The Fund launched during the financial period.
SOFT COMMISSIONS
There were no soft commission arrangements entered into by the Investment Manager on behalf of the Fund during the financial period ended 30 April 2019.
GLOBAL EXPOSURE
The Directors are required by regulation to employ a risk management process, which enables it to monitor accurately and manage the global exposure from FDIs which the Fund gains as a result of its strategy (“global exposure”).
The Directors uses the methodology known as the “commitment approach” in order to measure the global exposure of the Fund and manage the potential loss to them due to market risk.
The commitment approach is a methodology that aggregates the underlying market or notional value of FDI to determine the global exposure of the Fund to FDI.
Pursuant to the relevant regulations, global exposure for a Fund utilising the commitment approach must not exceed 100% of the Fund’s NAV.
LEVERAGE
The use of FDIs may expose a Fund to a higher degree of risk. In particular, FDI contracts can be highly volatile, and the amount of initial margin is generally small relative to the size of the contract so that transactions may be leveraged in terms of market exposure. A relatively small market movement may have a potentially larger impact on FDIs than on standard bonds or equities. Leveraged FDI positions can therefore increase a Fund’s volatility.
71 BlackRock Common Contractual Funds
REPORT ON REMUNERATION
The below disclosures are made in respect of the remuneration policies of the BlackRock group ("BlackRock"), as they apply to BlackRock Asset Management Ireland Limited (the "Manager"). The disclosures are made in accordance with the 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.
Remuneration Governance
BlackRock’s remuneration governance in EMEA operates as a tiered structure which includes: (a) the Management Development and Compensation Committee (“MDCC”) (which is the global, independent remuneration committee for BlackRock, Inc. and all of its subsidiaries, including the Manager); and (b) the Manager’s board of directors (the “Manager’s Board”). These bodies are responsible for the determination of BlackRock’s remuneration policies.
(a) MDCC
The MDCC’s purposes include:
providing oversight of: o BlackRock’s executive compensation programmes; o BlackRock’s employee benefit plans; and o such other compensation plans as may be established by BlackRock from time to time for which the MDCC is deemed as administrator; reviewing and discussing the compensation discussion and analysis included in the BlackRock, Inc. annual proxy statement with management and approving the MDCC’s report for inclusion in the proxy statement; reviewing, assessing and making reports and recommendations to the BlackRock, Inc. board of directors (the “BlackRock, Inc. Board”) as appropriate on BlackRock’s talent development and succession planning, with the emphasis on performance and succession at the highest management levels; and in accordance with applicable UK and European regulations and guidance, to act as the Remuneration Committee for BlackRock’s EMEA regulated entities.
The MDCC directly retains its own independent compensation consultant, Semler Brossy Consulting Group LLC, who has no relationship with BlackRock, Inc. or the BlackRock, Inc. Board that would interfere with its ability to provide independent advice to the MDCC on compensation matters.
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 requires each meet a “non-employee director” standard.
The MDCC held 10 meetings during 2018. The MDCC charter is available on BlackRock, Inc.’s website (www.blackrock.com).
Through its regular reviews, the MDCC continues to be satisfied with the principles of BlackRock’s compensation policy and approach.
(b) The Manager’s Board
The Manager’s Board has the task of supervising and providing oversight of the UCITS Remuneration Policy as it applies to the Manager and its Identified Staff.
72 BlackRock Common Contractual Funds
REPORT ON REMUNERATION (continued)
(b) The Manager’s Board (continued)
The Manager’s Board (through independent review by the relevant control functions) remains satisfied with the implementation of the UCITS Remuneration Policy as it applies to the Manager and its Identified Staff.
Decision-making process
Remuneration decisions for employees are made once annually 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 remuneration decision-making is tied to financial performance, significant discretion is used to determine individual variable remuneration 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 remuneration 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 awarded to any individual(s) for a particular performance year may also be zero.
Annual incentive awards are paid from a bonus pool.
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 preincentive 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 of 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 Enterprise Risk and Regulatory Compliance departments report to the MDCC 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 head of each control function is either a member of the Global Executive Committee (“GEC”), the global management committee, or has a reporting obligation to the board of directors of BlackRock Group Limited, the parent company of all of BlackRock’s EMEA regulated entities, including the Manager.
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 MDCC.
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 following key objectives as detailed below: appropriately balance BlackRock’s financial results between shareholders and employees;
73 BlackRock Common Contractual Funds
REPORT ON REMUNERATION (continued)
Link between pay and performance (continued)
attract, retain and motivate employees capable of making significant contributions to the long-term success of the business;
align the interests of senior employees with those of shareholders by awarding BlackRock Inc.’s stock as a significant part of both annual and long-term incentive awards;
control fixed costs by ensuring that compensation expense varies with profitability;
link 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;
discourage excessive risk-taking; and
ensure that client interests are not negatively impacted by remuneration awarded on a short-term, mid-term and/or long-term basis.
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 don’t 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. Remuneration 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.
BlackRock operates a total compensation model for remuneration which includes a base salary, which is contractual, and a discretionary bonus scheme.
BlackRock operates an annual discretionary bonus scheme. Although all employees are eligible to be considered for a discretionary bonus, there is no contractual obligation to make any award to an employee under its 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. 74 BlackRock Common Contractual Funds
REPORT ON REMUNERATION (continued)
Link between pay and performance (continued)
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 BlackRock, Inc. stock and subject to additional vesting/clawback conditions. Stock awards are subject to further performance adjustment through variation in BlackRock, Inc.’s share price over the vesting period. As total annual compensation increases, a greater portion is deferred into stock. 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 into three equal instalments over the three years following grant.
Supplementary to the annual discretionary bonus as described above, equity awards from the “Partner Plan” and “Targeted Equity Award Plan” are made to select senior leaders to provide greater linkage with future business results. The long-term incentive awards have been established individually to provide meaningful incentive for continued performance over a multi-year period recognising 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 As Adjusted Operating Margin1 and Organic Revenue Growth2. Determination of pay-out will be made based on the firm’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 the firm’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 across 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 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 Staff
The UCITS Remuneration Policy sets out the process that will be applied to identify staff as Identified Staff, 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 in significant influence function lists; changes in role responsibilities; and revised regulatory direction.
Quantitative Remuneration Disclosure
The Manager is required under UCITS to make quantitative disclosures of 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.
1 As Adjusted Operating Margin: As reported in BlackRock’s external filings, reflects adjusted Operating Income divided by Total Revenue net of distribution and servicing expenses and amortisation of deferred sales commissions. 2 Organic Revenue Growth: Equal to net new base fees plus net new Aladdin revenue generated in the year (in dollars). 75 BlackRock Common Contractual Funds
REPORT ON REMUNERATION (continued)
Quantitative Remuneration Disclosure (continued)
Disclosures are provided in relation to (a) the staff of the Manager; (b) staff who are senior management; and (c) staff who have the ability to materially affect the risk profile of the Fund, including individuals who, although not directly employed by the Manager, are assigned by their employer to carry out services directly for the Manager.
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 Fund is included in the aggregate figures disclosed.
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. Therefore, 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-related business in respect of the Manager’s financial year ending 31 December 2018 is USD 6.2 million. This figure is comprised of fixed remuneration of USD 2.4 and variable remuneration of USD 3.8 million. There were a total of 39 beneficiaries of the remuneration described above.
The amount of the aggregate remuneration awarded by the Manager, which has been attributed to the Manager’s UCITS-related business in respect of the Manager’s financial year ending 31 December 2018, to its senior management was USD 0.6 million, and to other members of its staff whose actions have a material impact on the risk profile of the Manager’s UCITS-related business was USD 5.6 million.
76 BlackRock Common Contractual Funds
EFFICIENT PORTFOLIO MANAGEMENT
Efficient Portfolio Management Techniques
The Directors may, on behalf of the Fund and subject to the conditions and within the limits laid down by the CBI and the prospectus, employ techniques and instruments relating to transferable securities, including investments in FDIs provided that such techniques and instruments are used for efficient portfolio management purposes or to provide protection against exchange risk or for direct investment purposes, where applicable.
The underlying exposure obtained through FDI and at the identity of the counterparties to these FDIs at the financial period end are disclosed on the Fund’s schedule of investments.
77 BlackRock Common Contractual Funds
DISCLAIMERS Indices Disclaimers
Disclaimer for Reference to Benchmark Index and Index Provider Website In accordance with the CBI requirements, the Manager, on behalf of the Fund, is required to provide details of the relevant index provider’s website (“Website”) to enable unitholders obtain further details of the Fund’s Benchmark Index (including the index constituents). The Manager has no responsibility for each Website and is not involved in any way in sponsoring, endorsing or otherwise involved in the establishment or maintenance of each Website or the contents thereof. Furthermore, the Manager has no responsibility for the index provider’s Benchmark Index nor for the quality, accuracy or completeness of data in respect of their Benchmark Indices nor that the published indices will be managed in line with their described index methodologies.
MSCI Indices ("MSCI Indices") The Entity is not sponsored, endorsed, sold or promoted by MCSI, any of its affiliates, any of its information providers or any other third party involved in, or related to, compiling, computing or creating any MSCI Index (collectively the "MCSI Parties"). The MCSI Indices are the exclusive property of MSCI. MSCI and the MCSI Index names are service mark(s) of MSCI or its affiliates and have been licensed for use for certain purposes by the Investment Manager. None of the MSCI Parties makes any representation or warranty, express or implied, to the issuer or owners of this Fund or any other person or entity regarding the advisability of investing in Funds/accounts generally or in this Fund particularly or the ability of any MCSI Index to track corresponding stock market performance. MSCI or its affiliates are the licensors of certain trademarks, service marks and trade names and of the MSCI Indexes which are determined, composed and calculated by MSCI without regard to this Fund or the issuer or owners of this Fund or any other person or entity into consideration in determining, composing or calculating the MSCI Indexes. None of the MSCI parties is responsible for or has participated in the determination of the timing of, prices at, or quantities of this Fund to be issued or in the determination or calculation of the equation by or the consideration into which this Fund is redeemable. Further, none of the MSCI parties has any obligation or liability to the issuer or owners of this Fund or any other person or entity in connection with the administration, marketing or offering of this Fund.
Although MSCI shall obtain information for inclusion in or for use in the calculation of the MSCI Indexes from sources that MSCI considers reliable, none of the MSCI parties warrants or guarantees the originality, accuracy and/or the completeness of any MSCI Index or any data included therein. None of the MSCI parties make any warranty, express or implied, as to the results to be obtained by the issuer of the Fund, owners of the Fund, or any other person or entity, from the use of the MSCI Index or any data included therein. None of the MSCI parties shall have any liability for any errors, omissions or interruptions of or in connection with any MSCI Index or any data included therein. Further, none of the MSCI parties makes any express or implied warranties of any kind, and the MSCI parties hereby expressly disclaim all warranties of merchantability and fitness for a particular purpose, with respect to each MSCI Index and any data included therein. Without limiting any of the foregoing, in no event shall any of the MSCI parties have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.
No purchaser, seller, owner or holder of this security, account, product or fund, or any other person or entity, should use or refer to any MSCI trade name, trademark or service mark to sponsor, endorse, market or promote this security, account product or fund without first contacting MSCI to determine whether MSCI's permission is required. Under no circumstances may any person or entity claim any affiliation with MSCI without the prior written permission of MSCI.
78