BlackRock Asset Management Canada Limited. Annual Audited Financial Statements

Transcription

1 BlackRock Asset Management Canada Limited Annual Audited Financial Statements As at December 31, 2012

2 Table of Contents Statement of Net Assets as at December 31 Statement of Operations for the periods ended December 31 Statement of Changes in Net Assets for the periods ended December 31 Statement of Cash Flow for the periods ended December 31* Statement of Investment Portfolio as at December 31, 2012 Canadian Equity Index Funds BlackRock Canadian Equity Index Fund 3 BlackRock Canadian Equity Ex-Trusts Index Fund 10 BlackRock CDN MSCI Canada IMI Index Fund 12 U.S. Equity Funds BlackRock CDN US Equity Index Non-Taxable Fund 19 BlackRock CDN US Equity Index Plus Non-Taxable Fund 28 BlackRock CDN US Equity Index Hedged Non-Taxable Fund 37 BlackRock CDN US Equity Index Fund 40 BlackRock CDN US Alpha Tilts Non-Taxable Fund 49 BlackRock CDN US Alpha Tilts Hedged Non-Taxable Fund 54 BlackRock CDN Russell 3000 Index Non-Taxable Fund 57 Active Canadian Equity Funds BlackRock Active Canadian Equity Fund 89 BlackRock Active Canadian Equity Ex-Income Trusts Fund 94 BlackRock Active Canadian Equity DC Fund 99 BlackRock Active Canadian Equity Small Cap Fund 104 BlackRock Canada Alpha Advantage Fund 108 Canadian Bond Funds BlackRock Canada Universe Bond Index Fund 115 BlackRock Canada ex-bbb Universe Bond Index Fund 129 BlackRock Canada Real Return Bond Index Fund 138 BlackRock Canada Long Bond Index Fund 142 BlackRock Canada Long Government Bond Index Fund 150 BlackRock Canada All Government Bond Index Fund 155 BlackRock Canada Credit-Screened Bond Index Fund 161 BlackRock Canada CoreActive Universe Bond Fund 170 BlackRock Canada CorePlus Long Bond Fund 178 BlackRock Canada CorePlus Universe Bond Fund 186 BlackRock Canada Levered Long Bond Index Fund 197 BlackRock Canada Levered Real Return Bond Index Fund 200 Active Balanced Funds BlackRock Balanced Active Fund 242 Active Alternative Funds BlackRock CDN Global Market Selection Fund 245 Short Term Investment Funds BlackRock CDN Short Term Index Fund 249 International Equity Funds BlackRock CDN MSCI EAFE Equity Index Fund 253 BlackRock CDN MSCI EAFE Index Hedged Fund 267 BlackRock CDN MSCI ACWI ex-canada Index Fund 270 BlackRock CDN MSCI Emerging Markets Index Fund 273 BlackRock CDN MSCI EAFE Index Plus Fund 286 BlackRock CDN Global Equity Focus Fund 299 BlackRock CDN Global Developed Real Estate Index Fund 302 BlackRock CDN Global Infrastructure Equity Index Fund 308 BlackRock CDN Emerging Markets Fundamental Index Fund 312 Notes to Financial Statements 319 Auditor s Report 357 Balanced Index Funds BlackRock Balanced Moderate Index DC Fund 203 BlackRock Balanced Conservative Index DC Fund 206 BlackRock Balanced Aggressive Index DC Fund 209 BlackRock Canada LifePath Funds BlackRock CDN LifePath Retirement Index Fund I 212 BlackRock CDN LifePath Index 2010 Retirement Fund 215 BlackRock CDN LifePath 2015 Index Fund 218 BlackRock CDN LifePath 2020 Index Fund 221 BlackRock CDN LifePath 2025 Index Fund 224 BlackRock CDN LifePath 2030 Index Fund 227 BlackRock CDN LifePath 2035 Index Fund 230 BlackRock CDN LifePath 2040 Index Fund 233 BlackRock CDN LifePath 2045 Index Fund 236 BlackRock CDN LifePath 2050 Index Fund 239 * Applicable to BlackRock Canada Alpha Advantage Fund, BlackRock Canada CorePlus Long Bond Fund, and BlackRock Canada CorePlus Universe Bond Fund only. 2

3 BlackRock Canadian Equity Index Fund Statement of Net Assets As at December Assets Investments - at fair (Note 2) $ 4,096,874,281 $ 3,194,066,633 Cash 50,660,175 20,082,763 Margin due from brokers 7,384,419 4,827,610 Securities lending income receivable 79,487 17,538 Dividends and distributions from underlying trust units receivable 13,293,647 9,018,851 Accounts receivable from issue of units 80,392,330 6,171,372 Accounts receivable for investment sales - 4,840,920 4,248,684,339 3,239,025,687 Liabilities Operating expenses payable 137,818 96,247 Payables for redemption of units 19,042,571 4,007,665 Payables for investment purchases 74,707,796 15,687,455 93,888,185 19,791,367 Net Assets $ 4,154,796,154 $ 3,219,234,320 Net Assets per Class Class A $ 1,463,008,980 $ 1,063,323,780 Class D 2,691,787,174 2,155,910,540 $ 4,154,796,154 $ 3,219,234,320 Number of Units Issued and Outstanding (Note 8) Class A 25,654,009 19,991,357 Class D 113,019,328 97,045,007 Net Assets per Unit Class A $ $ Class D $ $ Investments at Cost $ 3,798,006,654 $ 3,047,137,735 Approved by BlackRock Asset Management Canada Limited, Manager of the Funds Eric Léveillé, Director Noel Archard, Director The accompanying notes are an integral part of the financial statements. 3

4 BlackRock Canadian Equity Index Fund Statement of Operations For the Years Ended December Revenue Dividend income and distributions from underlying trust units $ 108,488,070 $ 80,180,612 Interest income 168, ,700 Securities lending income 1,091, ,114 Net gain (loss) from futures contracts 1,521,206 (1,775,427) 111,269,200 78,794,999 Expenses Custodian fees 220, ,486 Fund accounting expenses 115, ,913 Unitholder communication s 2, Audit fees 23,138 25,171 Securities filing fees 62,820 49,139 Independent review committee fees 1,500 3,624 Other operating expenses 32,188 30, , ,681 Net Investment Income for the Year 110,810,545 78,388,318 Gain (Loss) on Investments Net realized gain (loss) on sale of investments (9,002,456) 41,433,378 Transaction s (Note 2,13) (414,924) (410,973) Net change in unrealized appreciation (depreciation) in of investments 151,938,729 (389,287,299) Net Gain (Loss) on Investments 142,521,349 (348,264,894) Increase (Decrease) in Net Assets from Operations $ 253,331,894 $ (269,876,576) Increase (Decrease) in Net Assets from Operations per Class Class A $ 83,769,101 $ (86,605,717) Class D 169,562,793 (183,270,859) $ 253,331,894 $ (269,876,576) Increase (Decrease) in Net Assets from Operations per Unit Class A $ 3.43 $ (4.71) Class D $ 1.64 $ (2.09) The accompanying notes are an integral part of the financial statements. 4

5 BlackRock Canadian Equity Index Fund Statement of Changes in Net Assets For the Years Ended December Fund Class A Class D Net Assets - Beginning of Year $ 3,219,234,320 $ 2,850,758,577 $ 1,063,323,780 $ 844,710,443 $ 2,155,910,540 $ 2,006,048,134 Increase (Decrease) in Net Assets from Operations 253,331,894 (269,876,576) 83,769,101 (86,605,717) 169,562,793 (183,270,859) Capital Transactions Proceeds from issue of units 1,383,460,449 1,215,967, ,620, ,222, ,839, ,745,414 Reinvestment of distributions 106,847, ,787,217 38,466,085 35,142,860 68,381,549 74,644,357 Redemption of units (701,230,509) (577,615,215) (452,704,478) (293,003,066) (248,526,031) (284,612,149) Net capital transactions 789,077, ,139, ,382, ,361, ,695, ,777,622 Distributions From net investment income (106,847,634) (74,947,371) (38,466,085) (25,290,516) (68,381,549) (49,656,855) From capital gains redemption in kind (Note 9) - (34,839,846) - (9,852,344) - (24,987,502) Total distributions (106,847,634) (109,787,217) (38,466,085) (35,142,860) (68,381,549) (74,644,357) Increase in Net Assets for the Year 935,561, ,475, ,685, ,613, ,876, ,862,406 Net Assets - End of Year $ 4,154,796,154 $ 3,219,234,320 $ 1,463,008,980 $ 1,063,323,780 $ 2,691,787,174 $ 2,155,910,540 The accompanying notes are an integral part of the financial statements. 5

6 BlackRock Canadian Equity Index Fund Canadian Common Stocks and Income Trusts Consumer Discretionary 4.6% Aimia, Inc. 471,340 6,327 7,004 Astral Media, Inc.-Class A 153,083 5,546 7,072 Canadian Tire Corp.-Class A 223,052 13,071 15,455 Cineplex, Inc. 169,935 3,689 5,404 Cogeco Cable, Inc. 61,687 2,384 2,342 Corus Entertainment, Inc.-Class B 219,029 4,275 5,379 Dollarama, Inc. 188,070 7,054 11,087 Dorel Industries, Inc.-Class B 70,808 2,232 2,542 Gildan Activewear, Inc. 303,069 7,474 10,989 Linamar Corp. 125,833 2,345 2,917 Magna International, Inc.-Class A 638,762 25,225 31,663 Martinrea International, Inc. 207,370 1,768 1,601 Quebecor, Inc.-Class B 123,849 3,791 4,785 Reitman s (Canada), Ltd.-Class A 145,110 2,265 1,743 RONA, Inc. 332,484 4,297 3,528 Shaw Communications, Inc.-Class B 1,007,743 19,321 22,987 Thomson Reuters Corp. 1,018,512 34,818 29,303 Tim Hortons, Inc. 422,296 16,691 20,604 Westport Innovations, Inc. 122,604 3,172 3, , ,632 Consumer Staples 2.7% Alimentation Couche Tard, Inc.- Class B 343,802 8,398 16,760 Cott Corp. 260,665 2,156 2,085 Empire Co., Ltd.-Class A 80,267 3,937 4,716 George Weston, Ltd. 129,898 9,136 9,166 Jean Coutu Group, Inc.-Class A 252,260 3,094 3,660 Loblaw Cos., Ltd. 277,493 11,162 11,616 Maple Leaf Foods, Inc. 207,146 2,378 2,471 Metro, Inc.-Class A 266,166 10,729 16,830 North West Co., Inc. 132,472 2,525 2,964 Saputo, Inc. 345,318 11,333 17,335 Shoppers Drug Mart Corp. 563,014 23,379 24,046 88, ,649 Energy 24.9% Advantage Oil & Gas, Ltd. 462,428 3,719 1,466 AltaGas, Ltd. 286,532 7,567 9,599 ARC Resources, Ltd. 842,120 19,529 20,438 Athabasca Oil Corp. 852,256 11,938 8,889 Bankers Petroleum, Ltd. 692,806 4,591 2,217 Baytex Energy Corp. 331,973 11,903 14,222 Birchcliff Energy, Ltd. 264,082 2,756 1,960 Black Pearl Resources, Inc. 727,072 2,796 2,189 Bonavista Energy Corp. 477,966 11,181 7,055 Bonterra Energy Corp. 41,755 2,365 1,893 Calfrac Well Services, Ltd. 89,389 2,258 2,223 Cameco Corp. 1,082,752 26,773 21,168 Canadian Natural Resources, Ltd. 2,997,320 92,416 85,813 Canadian Oil Sands, Ltd. 1,234,171 34,059 24,869 Energy (continued) Celtic Exploration, Ltd. 240,542 3,788 6,309 Cenovus Energy, Inc. 2,069,926 60,455 68,908 Crescent Point Energy Corp. 1,017,750 39,270 38,166 Crew Energy, Inc. 331,706 4,072 2,140 Enbridge Income Fund, Inc. 111,869 2,588 2,684 Enbridge, Inc. 2,190,565 58,741 94,194 Encana Corp. 2,016,603 51,819 39,525 Enerflex, Ltd. 212,718 2,385 2,533 Enerplus Corp. 542,602 16,707 6,945 Ensign Resource Service Group, Inc. 342,757 5,156 5,248 Freehold Royalties, Ltd. 132,019 2,406 2,940 Gibson Energy, Inc. 326,965 7,111 7,837 Husky Energy, Inc. 806,887 21,606 23,714 Imperial Oil, Ltd. 696,403 28,463 29,757 Inter Pipeline Fund 748,181 10,131 17,567 Keyera Corp. 212,054 6,743 10,401 Legacy Oil + Gas, Inc. 349,373 4,378 2,383 MEG Energy Corp. 331,616 15,208 10,088 Mullen Group, Ltd. 239,171 4,910 4,996 Nexen, Inc. 1,451,506 31,073 38,567 Niko Resources, Ltd. 173,178 8,069 1,839 Pacific Rubiales Energy Corp. 808,541 15,680 18,645 Paramount Resources, Ltd.-Class A 103,340 3,088 3,300 Parkland Fuel Corp. 184,822 2,415 3,486 Pason Systems, Inc. 177,421 2,370 3,032 Pembina Pipeline Corp. 798,115 16,994 22,690 Pengrowth Energy Corp. 1,393,721 17,390 6,857 Penn West Petroleum, Ltd. 1,312,426 30,944 14,135 Petrobakken Energy, Ltd. 248,763 5,478 2,550 Petrobank Energy & Resources, Ltd. 250,681 4,383 3,108 Petrominerales, Ltd. 235,421 5,940 2,011 Peyto Exploration & Development Corp. 386,373 7,134 8,852 Precision Drilling Corp. 643,295 7,427 5,269 Savanna Energy Services Corp. 234,691 2,374 1,676 Secure Energy Services, Inc. 237,496 2,396 2,339 ShawCor, Ltd.-Class A 159,601 4,283 6,210 Suncor Energy, Inc. 4,193, , ,138 Talisman Energy, Inc. 2,827,492 42,113 31,724 Tourmaline Oil Corp. 372,466 10,902 11,595 TransCanada Corp. 1,930,668 72,351 90,683 Transglobe Energy Corp. 202,072 2,688 1,881 Trican Well Service, Ltd. 401,082 5,904 5,258 Trilogy Energy Corp. 156,419 3,668 4,542 Trinidad Drilling, Ltd. 331,054 2,630 2,264 Uranium One, Inc. 1,232,293 6,882 2,884 Veresen, Inc. 540,018 6,736 6,351 Vermilion Energy, Inc. 270,772 10,791 14,031 Whitecap Resources, Inc. 348,025 2,930 3,007 1,052,073 1,036,260 The accompanying notes are an integral part of the financial statements. 6

7 BlackRock Canadian Equity Index Fund Financials 32.1% AGF Management, Ltd.-Class B 190,058 3,268 1,882 Allied Properties Real Estate Investment Trust-REIT 175,012 4,186 5,767 Artis Real Estate Investment Trust- REIT 301,959 3,982 4,723 Bank of Montreal 1,782,260 97, ,379 Bank of Nova Scotia 3,244, , ,283 Boardwalk REIT 107,417 4,129 6,908 Brookfield Asset Management, Inc.- Class A 1,539,102 42,578 55,869 Brookfield Properties Co. 690,311 11,227 11,652 Calloway REIT 266,466 5,862 7,701 Canadian Apartment Properties REIT 275,338 4,818 6,823 Canadian Imperial Bank of Commerce 1,107,819 78,473 88,581 Canadian REIT 186,499 5,653 8,064 Canadian Western Bank 214,491 5,021 6,092 Chartwell Seniors Housing REIT 468,552 3,717 5,088 CI Financial Corp. 402,870 8,822 10,019 Cominar REIT 312,270 6,558 7,042 Crombie Real Estate Investment Trust-REIT 139,204 2,067 2,053 Davis & Henderson Income Corp. 162,221 2,937 3,486 Dundee Corp.-Class A 107,741 1,971 3,299 Dundee REIT 265,856 8,214 9,948 Extendicare Inc. 234,543 1,891 1,794 fax Financial, Ltd. 54,407 18,656 19,315 First Capital Realty, Inc. 231,584 3,778 4,351 FirstService Corp. 69,978 1,650 1,959 Genworth MI Canada, Inc. 113,541 2,721 2,563 Granite Real Estate, Inc. 128,260 4,577 4,838 Great-West Lifeco, Inc. 702,853 17,154 17,065 H&R REIT 531,000 10,536 12,797 Home Capital Group, Inc. 86,402 3,466 5,099 IGM Financial, Inc. 262,836 10,819 10,931 Industrial Alliance Insurance and Financial Services, Inc. 248,183 7,239 7,776 Intact Financial Corp. 365,165 17,313 23,612 Itemus, Inc. 14, Laurentian Bank of Canada 77,006 3,167 3,404 Manulife Financial Corp. 4,987,880 99,408 67,237 National Bank of Canada 443,367 27,064 34,184 Northern Property Real Estate Investment Trust-REIT 87,512 2,838 2,700 Onex Corp. 241,860 7,020 10,122 Power Corp. of Canada 945,849 25,339 23,920 Power Financial Corp. 640,033 18,254 17,409 Primaris Retail REIT 267,823 4,932 7,194 RioCan REIT 812,528 17,201 22,344 Royal Bank of Canada 3,958, , ,751 Sun Life Financial, Inc. 1,634,712 50,085 43,058 Financials (continued) TMX Group, Ltd. 63,269 3,002 3,208 Toronto-Dominion Bank 2,514, , ,362 1,173,794 1,333,652 Health Care 1.8% Catamaran Corp. 561,822 18,156 26,198 CML HealthCare, Inc. 246,760 2,970 1,639 Nordion, Inc. 170,177 2,001 1,087 Valeant Pharmaceuticals International, Inc. 781,185 27,147 46,277 50,274 75,201 Industrials 5.9% Black Diamond Group, Ltd. 95,847 2,123 1,917 Bombardier, Inc.-Class B 4,085,227 20,703 15,320 CAE, Inc. 709,725 6,817 7,140 Canadian National Railway Co. 1,181,762 70, ,701 Canadian Pacific Railway, Ltd. 407,384 23,993 41,052 Chorus Aviation, Inc. 303,068 1,478 1,155 Finning International, Inc. 470,801 10,231 11,563 Genivar, Inc. 95,044 2,168 1,873 Progressive Waste Solutions, Ltd. 315,391 6,232 6,762 Russel Metals, Inc. 164,747 3,567 4,539 SNC-Lavalin Group, Inc. 413,643 16,687 16,657 Stantec, Inc. 125,638 3,446 4,973 Superior Plus, Inc. 306,692 3,727 3,131 Toromont Industries, Ltd. 209,055 3,502 4,397 Transcontinental, Inc.-Class A 182,071 2,623 2,021 TransForce, Inc. 220,381 2,557 4,372 Wajax Corp. 45,871 2,153 1,862 Westjet Airlines, Ltd. 344,511 4,836 6,773 Westshore Terminals Investment Corp. 174,880 3,240 4, , ,010 Information Technology 1.5% Celestica, Inc. 448,582 4,818 3,616 CGI Group, Inc.-Class A 750,308 12,935 17,197 Constellation Software, Inc. 31,922 3,339 3,807 MacDonald Dettwiler & Associates, Ltd. 87,213 3,522 4,879 Open Text Corp. 160,154 7,220 8,869 Otsuka Corp. 1,066,672 10,967 8,480 Research In Motion, Ltd. 1,134,068 51,348 13,359 Wi-Lan, Inc. 333,150 2,156 1,506 96,305 61,713 Materials 18.2% Aecon Group, Inc. 153,290 2,027 1,625 Agnico-Eagle Mines, Ltd. 469,902 23,510 24,444 Agrium, Inc. 408,925 27,119 40,541 Alacer Gold Corp. 623,186 5,097 3,228 The accompanying notes are an integral part of the financial statements. 7

8 BlackRock Canadian Equity Index Fund Materials (continued) Alamos Gold, Inc. 330,625 4,374 5,756 Argonaut Gold, Inc. 255,542 2,210 2,407 Aurizon Mines, Ltd. 451,563 2,450 1,540 B2Gold Corp. 969,973 3,359 3,424 Banro Corp. 552,598 2,545 1,525 Barrick Gold Corp. 2,740, ,795 95,121 Canexus Corp. 336,430 2,349 2,843 Canfor Corp. 234,572 2,516 3,884 Capstone Mining Corp. 826,854 2,956 1,984 CCL Industries-Class B 69,380 2,025 2,949 Centerra Gold, Inc. 433,732 5,787 4,021 China Gold International Resources Corp., Ltd. 662,205 3,136 2,251 Colossus Minerals, Inc. 291,576 2,165 1,332 Detour Gold Corp. 320,692 7,504 7,982 Dundee Precious Metals, Inc. 265,087 2,422 2,237 Eldorado Gold Corp. 1,954,942 23,629 24,965 Endeavour Silver Corp. 236,991 1,999 1,851 First Majestic Silver Corp. 317,828 5,059 6,350 First Quantum Minerals, Ltd. 1,304,484 20,884 28,516 Fortuna Silver Mines, Inc. 344,042 1,904 1,428 Franco-Nevada Corp. 401,341 14,892 22,772 Gabriel Resources, Ltd. 573,984 2,845 1,332 Gammon Gold, Inc. 773,061 6,940 6,270 Goldcorp, Inc. 2,221,692 86,407 80,825 Harry Winston Diamond Corp. 218,464 2,839 3,032 Hudbay Minerals, Inc. 470,980 5,738 4,710 Iamgold Corp. 1,031,050 13,493 11,713 Inmet Mining Corp. 140,581 7,375 10,403 Kinross Gold Corp. 3,121,577 41,265 29,967 Kirkland Lake Gold, Inc. 171,483 2, Labrador Iron Ore Royalty Corp. 175,276 4,400 6,015 Lundin Mining Corp. 1,390,373 7,818 7,077 Major Drilling Group International 216,797 2,786 2,116 Methanex Corp. 257,363 6,074 8,133 Nevsun Resources, Ltd. 544,713 2,773 2,299 New Gold, Inc. 1,267,624 9,857 13,893 Novagold Resources, Inc. 614,026 4,831 2,745 OceanaGold Corp. 722,046 2,337 2,022 Pan American Silver Corp. 417,248 9,657 7,757 Potash Corp. of Saskatchewan 2,359,441 88,797 95,274 Premier Gold Mines, Ltd. 407,817 2,349 1,709 Pretium Resources, Inc. 197,338 3,176 2,587 Rio Alto Mining, Ltd. 440,607 2,287 2,238 Rubicon Minerals Corp. 787,799 3,263 1,993 SEMAFO, Inc. 748,388 4,491 2,545 Sherritt International Corp. 811,759 6,626 4,611 Silver Standard Resources, Inc. 221,110 4,497 3,255 Silver Wheaton Corp. 970,286 22,226 34,717 Materials (continued) Silvercorp Metals, Inc. 467,724 3,242 2,362 Sino-Forest Corp.-Class A 164,849 2,221 - Tahoe Resources, Inc. 227,229 4,080 4,131 Taseko Mines, Ltd. 521,996 2,182 1,566 Teck Resources, Ltd. 1,316,047 42,123 47,443 Thompson Creek Metals Co., Inc. 421,143 4,284 1,731 Torex Gold Resources, Inc. 1,654,257 3,330 3,590 Turquoise Hill Resources, Ltd. 963,607 12,635 7,227 West Fraser Timber Co., Ltd. 86,716 3,770 6,071 Yamana Gold, Inc. 2,058,047 25,443 35, , ,402 Telecommunication Services 5.0% BCE, Inc. 2,121,303 74,359 90,368 Bell Aliant, Inc. 349,402 9,879 9,196 Manitoba Telecom Services, Inc. 183,439 6,673 5,954 Rogers Communications, Inc.- Class B 1,001,896 33,139 45,226 Tee-Com Electronics, Inc. 75, TELUS Corp. 892,320 40,377 58, , ,780 Utilities 1.9% Algonquin Power & Utilities Corp. 379,912 2,437 2,595 Atco, Ltd.-Class I 105,490 5,414 8,469 Atlantic Power Corp. 326,812 4,542 3,696 Canadian Utilities, Ltd.-Class A 164,844 8,218 11,813 Capital Power Corp. 190,655 4,820 4,334 Emera, Inc. 341,465 9,169 11,835 Fortis, Inc. 522,133 14,998 17,820 Just Energy Group, Inc. 383,485 5,186 3,639 Northland Power, Inc. 206,242 3,095 3,849 TransAlta Corp. 697,490 14,624 10,525 72,503 78,575 Total Canadian Common Stocks and Income Trusts 3,799,012 4,096,874 Transaction Costs (Note 2) (1,005) Total Investments 3,798,007 4,096,874 Other Assets and Liabilities 1.4% 57,922 Net Assets 4,154,796 The accompanying notes are an integral part of the financial statements. 8

9 BlackRock Canadian Equity Index Fund Portfolio Concentration (as a percentage of Net Assets) As at December 31, 2012 As at December 31, 2011 Portfolio by Category (%) (%) Consumer Discretionary Consumer Staples Energy Financials Health Care Industrials Information Technology Materials Telecommunication Services Utilities Other Assets and Liabilities Open futures contracts held by the Fund as at December 31, 2012 are shown in Note 4. The accompanying notes are an integral part of the financial statements. 9

10 BlackRock Canadian Equity Ex-Trusts Index Fund (Note 1) Statement of Net Assets As at December Assets Investments - at fair (Note 2) $ - $ 84,375,703 Cash 679, ,323 Margin due from brokers 14, ,589 Securities lending income receivable 1, Dividends and distributions from underlying trust units receivable 220, ,136 Accounts receivable from issue of units - 129,341 Accounts receivable for investment sales 74,707, ,490 75,624,182 85,348,750 Liabilities Operating expenses payable 22,507 25,735 Payables for redemption of units 75,601,675 - Payables for investment purchases - 180,303 75,624, ,038 Net Assets $ - $ 85,142,712 Number of Units Issued and Outstanding (Note 8) - 1,608,394 Net Assets per Unit $ - $ Investments at Cost $ - $ 81,157,339 Approved by BlackRock Asset Management Canada Limited, Manager of the Funds Eric Léveillé, Director Noel Archard, Director The accompanying notes are an integral part of the financial statements. 10

11 BlackRock Canadian Equity Ex-Trusts Index Fund (Note 1) Statement of Operations For the Years Ended December Revenue Dividend income and distributions from underlying trust units $ 2,223,397 $ 2,574,318 Interest income 2,954 3,262 Securities lending income 20,655 4,862 Net gain (loss) from futures contracts 52,362 (14,887) 2,299,368 2,567,555 Expenses Custodian fees 39,219 34,928 Fund accounting expenses 30,021 30,891 Unitholder communication s Audit fees 17,139 17,931 Securities filing fees 1,251 1,459 Independent review committee fees Other operating expenses 2,742 4,499 90,418 90,425 Net Investment Income for the Year 2,208,950 2,477,130 Gain (Loss) on Investments Net realized gain on sale of investments 6,449,450 14,865,281 Transaction s (Note 2,13) (13,334) (37,886) Net change in unrealized depreciation in of investments (3,218,364) (22,191,804) Net Gain (Loss) on Investments 3,217,752 (7,364,409) Increase (Decrease) in Net Assets from Operations $ 5,426,702 $ (4,887,279) Increase (Decrease) in Net Assets from Operations per Unit $ 3.87 $ (2.76) Statement of Changes in Net Assets For the Years Ended December Net Assets - Beginning of Year $ 85,142,712 $ 147,283,229 Increase (Decrease) in Net Assets from Operations 5,426,702 (4,887,279) Capital Transactions Proceeds from issue of units 5,233,935 8,511,709 Reinvestment of distributions 2,448,815 2,587,988 Redemption of units (95,803,349) (65,764,947) Net capital transactions (88,120,599) (54,665,250) Distributions From net investment income (2,448,815) (2,587,988) Total distributions (2,448,815) (2,587,988) Decrease in Net Assets for the Year (85,142,712) (62,140,517) Net Assets - End of Year $ - $ 85,142,712 The accompanying notes are an integral part of the financial statements. 11

12 BlackRock CDN MSCI Canada IMI Index Fund Statement of Net Assets As at December Assets Investments - at fair (Note 2) $ 1,126,581,432 $ 955,247,430 Cash 11,723,603 2,383,994 Margin due from brokers 932, ,223 Securities lending income receivable 23,892 4,804 Dividends and distributions from underlying trust units receivable 3,394,365 2,517,979 Accounts receivable from issue of units 7,610 8,002,050 Accounts receivable for investment sales 22,104,693 17,861,974 1,164,767, ,886,454 Liabilities Operating expenses payable 31,551 28,416 Payables for redemption of units 26,666,000 23,991,000 Payables for investment purchases 413, ,994 27,110,651 24,165,410 Net Assets $ 1,137,657,061 $ 962,721,044 Number of Units Issued and Outstanding (Note 8) 101,453,485 91,420,665 Net Assets per Unit $ $ Investments at Cost $ 1,093,597,521 $ 962,105,221 Approved by BlackRock Asset Management Canada Limited, Manager of the Funds Eric Léveillé, Director Noel Archard, Director The accompanying notes are an integral part of the financial statements. 12

13 BlackRock CDN MSCI Canada IMI Index Fund Statement of Operations For the Years Ended December Revenue Dividend income and distributions from underlying trust units $ 30,286,481 $ 28,438,219 Interest income 50,132 26,087 Securities lending income 271,028 73,588 Net gain (loss) from futures contracts 626,263 (74,342) Foreign exchange gain 7,201 17,342 31,241,105 28,480,894 Expenses Custodian fees 63,307 75,272 Fund accounting expenses 53,031 57,808 Unitholder communication s Audit fees 14,121 15,291 Securities filing fees 18,075 21,541 Independent review committee fees 504 1,200 Other operating expenses 5,623 7, , ,312 Net Investment Income for the Year 31,086,444 28,301,582 Gain (Loss) on Investments Net realized gain on sale of investments 2,502,278 43,299,051 Transaction s (Note 2,13) (48,264) (115,906) Net change in unrealized appreciation (depreciation) in of investments 39,841,702 (184,957,888) Net Gain (Loss) on Investments 42,295,716 (141,774,743) Increase (Decrease) in Net Assets from Operations $ 73,382,160 $ (113,473,161) Increase (Decrease) in Net Assets from Operations per Unit $ 0.74 $ (1.11) Statement of Changes in Net Assets For the Years Ended December Net Assets - Beginning of Year $ 962,721,044 $ 1,338,597,379 Increase (Decrease) in Net Assets from Operations 73,382,160 (113,473,161) Capital Transactions Proceeds from issue of units 198,501, ,385,476 Reinvestment of distributions 40,773,535 73,415,163 Redemption of units (96,947,565) (440,788,650) Net capital transactions 142,327,392 (188,988,011) Distributions From net investment income (30,209,951) (28,298,605) From capital gains (10,563,584) (45,116,558) Total distributions (40,773,535) (73,415,163) Increase (Decrease) in Net Assets for the Year 174,936,017 (375,876,335) Net Assets - End of Year $ 1,137,657,061 $ 962,721,044 The accompanying notes are an integral part of the financial statements. 13

14 BlackRock CDN MSCI Canada IMI Index Fund Canadian Common Stocks and Income Trusts Consumer Discretionary 4.8% Aimia, Inc. 133,212 1,478 1,979 Astral Media, Inc.-Class A 41,119 1,492 1,900 Brick, Ltd. 40, Canadian Tire Corp.-Class A 60,304 3,514 4,178 Cineplex, Inc. 47,613 1,108 1,514 Cogeco Cable, Inc. 12, Corus Entertainment, Inc.-Class B 62,203 1,248 1,528 Dollarama, Inc. 54,234 2,006 3,197 Dorel Industries, Inc.-Class B 19, EnerCare, Inc. 44, Gildan Activewear, Inc. 89,295 2,260 3,238 Great Canadian Gaming Corp. 37, Linamar Corp. 37, Magna International, Inc.-Class A 171,379 5,605 8,495 Martinrea International, Inc. 57, Quebecor, Inc.-Class B 33,865 1,024 1,309 Reitman s (Canada), Ltd.-Class A 38, RONA, Inc. 95,764 1,330 1,016 Sears Canada, Inc. 20, Shaw Communications, Inc.-Class B 291,777 6,185 6,655 Thomson Reuters Corp. 286,965 9,496 8,256 Tim Hortons, Inc. 119,720 4,470 5,841 Westport Innovations, Inc. 36, ,647 54,150 Consumer Staples 2.9% Alimentation Couche Tard, Inc.- Class B 98,155 2,696 4,785 Alliance Grain Traders, Inc. 11, Atrium Innovations, Inc. 21, Cott Corp. 73, Empire Co., Ltd.-Class A 23,478 1,176 1,379 George Weston, Ltd. 39,649 2,607 2,798 Jean Coutu Group, Inc.-Class A 71, ,032 Liquor Stores N.A., Ltd. 15, Loblaw Cos., Ltd. 87,011 3,029 3,642 Maple Leaf Foods, Inc. 76, Metro, Inc.-Class A 75,268 3,210 4,759 North West Co., Inc. 37, Premium Brands Corp. 13, Saputo, Inc. 99,432 3,308 4,992 Shoppers Drug Mart Corp. 160,470 6,762 6,854 26,865 33,501 Energy 25.9% Advantage Oil & Gas, Ltd. 128, AltaGas, Ltd. 80,679 1,947 2,703 Angle Energy, Inc. 58, ARC Resources, Ltd. 225,036 5,406 5,462 Athabasca Oil Corp. 247,171 3,465 2,578 Energy (continued) Bankers Petroleum, Ltd. 194,573 1, Baytex Energy Corp. 92,976 3,238 3,983 Bellatrix Exploration, Ltd. 81, Birchcliff Energy, Ltd. 75, Black Pearl Resources, Inc. 218, Bonavista Energy Corp. 128,407 3,117 1,895 Bonterra Energy Corp. 12, C&C Energia, Ltd. 31, Calfrac Well Services, Ltd. 25, Cameco Corp. 305,484 8,859 5,972 Canacol Energy, Ltd. 47, Canadian Energy Services & Technology Corp. 36, Canadian Natural Resources, Ltd. 845,721 29,328 24,213 Canadian Oil Sands, Ltd. 374,363 10,124 7,543 Canyon Services Group, Inc. 37, Celtic Exploration, Ltd. 69, ,822 Cenovus Energy, Inc. 583,674 16,770 19,431 Cequence Energy, Ltd. 99, Connacher Oil and Gas, Ltd. 335, Crescent Point Energy Corp. 268,478 10,810 10,068 Crew Energy, Inc. 78, Deethree Exploration, Ltd. 48, Denison Mines Corp. 250, Enbridge Income Fund, Inc. 24, Enbridge, Inc. 584,873 16,738 25,150 Encana Corp. 568,773 16,238 11,148 Enerflex, Ltd. 60, Enerplus Corp. 152,394 3,462 1,951 Ensign Resource Service Group, Inc. 100,820 1,467 1,544 borne Energy, Ltd. 60, Freehold Royalties, Ltd. 38, Gibson Energy, Inc. 77,461 1,554 1,857 Husky Energy, Inc. 265,540 7,157 7,804 Imperial Oil, Ltd. 229,173 9,336 9,793 Ithaca Energy, Inc. 198, Keyera Corp. 59,624 2,087 2,925 Legacy Oil + Gas, Inc. 100,754 1, Long Run Exploration, Ltd. 67, Longview Oil Corp. 19, MEG Energy Corp. 110,528 4,709 3,362 Mullen Group, Ltd. 62,819 1,082 1,312 Nexen, Inc. 409,419 9,063 10,878 Niko Resources, Ltd. 37,760 2, NuVista Energy, Ltd. 62, Pace Oil and Gas, Ltd. 34, Pacific Rubiales Energy Corp. 227,879 4,685 5,255 Paramount Resources, Ltd.-Class A 36, ,172 Parex Resources, Inc. 83, The accompanying notes are an integral part of the financial statements. 14

15 BlackRock CDN MSCI Canada IMI Index Fund Energy (continued) Parkland Fuel Corp. 50, Pason Systems, Inc. 50, Pembina Pipeline Corp. 223,071 4,474 6,342 Pengrowth Energy Corp. 385,001 4,700 1,894 Penn West Petroleum, Ltd. 365,534 6,607 3,937 Petrobakken Energy, Ltd. 57,316 1, Petrobank Energy & Resources, Ltd. 71,756 1, Petrominerales, Ltd. 66,815 1, Peyto Exploration & Development Corp. 105,728 1,840 2,422 Poseidon Concepts Corp. 56, Precision Drilling Corp. 181,743 1,427 1,488 Savanna Energy Services Corp. 65, Secure Energy Services, Inc. 79, ShawCor, Ltd.-Class A 44,445 1,289 1,729 Southern Pacific Resource Corp. 311, SouthGobi Resources, Ltd. 61, Spartan Oil Corp. 57, Suncor Energy, Inc. 1,193,601 41,623 39,031 Surge Energy, Inc. 54, Tag Oil, Ltd. 40, Talisman Energy, Inc. 797,192 13,514 8,944 Total Energy Services, Inc. 23, Tourmaline Oil Corp. 101,758 3,009 3,168 TransCanada Corp. 544,103 20,633 25,557 Transglobe Energy Corp. 55, Trican Well Service, Ltd. 113,378 1,545 1,486 Trilogy Energy Corp. 42, ,233 Trinidad Drilling, Ltd. 93, Twin Butte Energy, Ltd. 159, Uranium One, Inc. 373,305 1, Veresen, Inc. 150,499 2,132 1,770 Vermilion Energy, Inc. 72,303 2,729 3,747 Western Energy Services Corp. 40, Whitecap Resources, Inc. 94, Zargon Oil & Gas, Ltd. 21, , ,860 Financials 31.4% AGF Management, Ltd.-Class B 63,006 1, Alaris Royalty Corp. 14, Allied Properties Real Estate Investment Trust-REIT 22, Artis Real Estate Investment Trust- REIT 41, Bank of Montreal 499,639 28,125 30,383 Bank of Nova Scotia 885,107 44,744 50,823 Boardwalk REIT 18, ,174 Brookfield Asset Management, Inc.- Class A 429,956 11,360 15,607 Financials (continued) Brookfield Properties Co. 214,204 3,180 3,616 Calloway REIT 41, ,199 Canaccord Capital, Inc. 66, Canadian Apartment Properties REIT 35, Canadian Imperial Bank of Commerce 313,369 22,210 25,057 Canadian REIT 26, ,142 Canadian Western Bank 60,273 1,473 1,712 Chartwell Seniors Housing REIT 65, CI Financial Corp. 120,500 2,500 2,997 Cominar REIT 47, ,065 Crombie Real Estate Investment Trust-REIT 17, Davis & Henderson Income Corp. 46, Dundee Corp.-Class A 32, Dundee International Real Estate Investment Trust-REIT 18, Dundee REIT 37,085 1,055 1,388 Element Financial Corp. 63, Extendicare Inc. 65, First Capital Realty, Inc. 70,975 1,101 1,334 FirstService Corp. 21, Genworth MI Canada, Inc. 30, Gluskin Sheff + Associates, Inc. 12, GMP Capital, Inc. 43, Granite Real Estate, Inc. 17, Great-West Lifeco, Inc. 220,196 5,420 5,346 H&R REIT 70,345 1,619 1,695 Home Capital Group, Inc. 25,523 1,124 1,506 IGM Financial, Inc. 78,880 3,397 3,281 Industrial Alliance Insurance and Financial Services, Inc. 70,071 2,094 2,195 Innvest Real Estate Investment Trust-REIT 34, Intact Financial Corp. 100,102 4,581 6,473 Killam Properties, Inc. 36, Laurentian Bank of Canada 21, Mainstreet Equity Corp. 3, Manulife Financial Corp. 1,401,609 22,304 18,894 Morguard Real Estate Investment Trust-REIT 21, National Bank of Canada 125,060 7,993 9,642 Northern Property Real Estate Investment Trust-REIT 12, Northwest Healthcare Properties Real Estate Investment Trust-REIT 13, Onex Corp. 71,118 1,999 2,976 Power Corp. of Canada 269,990 7,168 6,828 Power Financial Corp. 191,542 5,467 5,210 Primaris Retail REIT 33, The accompanying notes are an integral part of the financial statements. 15

16 BlackRock CDN MSCI Canada IMI Index Fund Financials (continued) RioCan REIT 109,347 2,145 3,007 Royal Bank of Canada 1,115,364 60,562 66,710 Sprott, Inc. 40, Sun Life Financial, Inc. 458,877 12,264 12,087 TMX Group, Ltd. 14, Toronto-Dominion Bank 705,759 49,960 59,037 Uranium Participation Corp. 81, , ,431 Health Care 1.9% Catamaran Corp. 158,243 5,180 7,379 CML HealthCare, Inc. 69, Leisureworld Senior Care Corp. 22, Medical Facilities Corp. 21, Paladin Labs, Inc. 10, Valeant Pharmaceuticals International, Inc. 222,964 6,733 13,208 13,582 22,044 Industrials 6.4% AG Growth International, Inc. 9, Alexco Resource Corp. 44, ATS Automation Tooling Systems, Inc. 67, Bird Construction, Inc. 30, Black Diamond Group, Ltd. 28, Bombardier, Inc.-Class B 1,113,276 4,964 4,175 CAE, Inc. 200,157 1,837 2,014 Canadian National Railway Co. 335,799 21,904 30,319 Canadian Pacific Railway, Ltd. 132,612 8,259 13,363 Churchill Corp. 16, Exchange Income Corp. 2, Finning International, Inc. 132,889 2,517 3,264 Genivar, Inc. 27, Morneau Shepell, Inc. 34, Newalta, Inc. 38, Progressive Waste Solutions, Ltd. 88,953 1,720 1,907 Ritchie Bros. Auctioneers, Inc. 70,086 1,626 1,449 Russel Metals, Inc. 46, ,283 SNC-Lavalin Group, Inc. 116,730 5,552 4,701 Stantec, Inc. 35,425 1,035 1,402 Student Transportation, Inc. 52, Superior Plus, Inc. 87,054 1, Toromont Industries, Ltd. 59, ,242 Transcontinental, Inc.-Class A 50, TransForce, Inc. 59, ,183 Wajax Corp. 13, Westshore Terminals Investment Corp. 28, ,310 73,193 Information Technology 1.4% 5N Plus, Inc. 44, Celestica, Inc. 126,964 1,093 1,023 CGI Group, Inc.-Class A 157,660 2,506 3,613 EXFO, Inc. 19, MacDonald Dettwiler & Associates, Ltd. 24,656 1,093 1,379 Open Text Corp. 45,171 2,036 2,502 Otsuka Corp. 299,778 2,910 2,383 Research In Motion, Ltd. 364,614 18,474 4,295 Sandvine Corp. 110, Sierra Wireless, Inc. 20, Wi-Lan, Inc. 93, ,250 16,144 Materials 19.6% Aecon Group, Inc. 42, Agnico-Eagle Mines, Ltd. 132,254 7,809 6,880 Agrium, Inc. 115,344 8,240 11,435 Alacer Gold Corp. 175,527 1, Alamos Gold, Inc. 92,777 1,360 1,615 Argonaut Gold, Inc. 97, Augusta Resource Corp. 70, Aurizon Mines, Ltd. 126, Avalon Rare Metals, Inc. 77, B2Gold Corp. 270, Banro Corp. 156, Barrick Gold Corp. 772,778 33,956 26,823 Belo Sun Mining Corp. 203, Canexus Corp. 97, Canfor Corp. 72, ,199 Canfor Pulp Products, Inc. 27, Capstone Mining Corp. 233, Cascades, Inc. 52, Centerra Gold, Inc. 128,195 1,580 1,188 China Gold International Resources Corp., Ltd. 119, Colossus Minerals, Inc. 81, Continental Gold, Ltd. 70, Copper Mountain Mining Corp. 74, Detour Gold Corp. 87,149 2,024 2,169 Dundee Precious Metals, Inc. 76, Eastern Platinum, Ltd. 735, Eldorado Gold Corp. 523,357 7,478 6,683 Endeavour Mining Corp. 300, Endeavour Silver Corp. 77, First Majestic Silver Corp. 89,281 1,218 1,784 First Quantum Minerals, Ltd. 367,990 6,273 8,044 Fortress Paper, Ltd. 9, Fortuna Silver Mines, Inc. 93, Franco-Nevada Corp. 112,005 3,849 6,355 The accompanying notes are an integral part of the financial statements. 16

17 BlackRock CDN MSCI Canada IMI Index Fund Materials (continued) Gabriel Resources, Ltd. 218, Gammon Gold, Inc. 218,179 2,166 1,769 Goldcorp, Inc. 626,069 27,498 22,776 Golden Star Resources, Ltd. 204, Great Basin Gold, Ltd. 452, Guyana Goldfields, Inc. 72, Harry Winston Diamond Corp. 58, Hudbay Minerals, Inc. 133,179 1,714 1,332 Iamgold Corp. 290,792 5,079 3,303 Imperial Metals Corp. 34, Inmet Mining Corp. 40,227 2,378 2,977 International Tower Hill Mines, Ltd. 62, Katanga Mining, Ltd. 432, Keegan Resources, Inc. 59, Kinross Gold Corp. 880,165 13,017 8,450 Kirkland Lake Gold, Inc. 48, Lake Shore Gold Corp. 305, Lundin Mining Corp. 405,872 1,845 2,066 MAG Silver Corp. 34, Major Drilling Group International 60, Methanex Corp. 72,577 1,697 2,293 Midas Gold Corp. 55, Nevsun Resources, Ltd. 153, New Gold, Inc. 357,129 2,319 3,914 NGEx Resources, Inc. 107, Norbord, Inc. 17, North American Palladium, Ltd. 121, Northern Dynasty Minerals, Ltd. 53, Novagold Resources, Inc. 170,824 1, OceanaGold Corp. 212, Orbite Aluminae, Inc. 138, Pan American Silver Corp. 117,697 2,763 2,188 Potash Corp. of Saskatchewan 663,634 28,618 26,798 Premier Gold Mines, Ltd. 116, Pretium Resources, Inc. 56, Primero Mining Corp. 51, Queenston Mining, Inc. 54, Rainy River Resources, Ltd. 69, Romarco Minerals, Inc. 447, Rubicon Minerals Corp. 216, Sabina Gold & Silver Corp. 113, San Gold Corp. 243, Seabridge Gold, Inc. 24, SEMAFO, Inc. 208,227 1, Sherritt International Corp. 231,312 1,382 1,314 Silver Standard Resources, Inc. 62,988 1, Silver Wheaton Corp. 273,374 5,940 9,781 Silvercorp Metals, Inc. 130, Sino-Forest Corp.-Class A 184,987 3,360 - Materials (continued) Sprott Resource Corp. 69, Tahoe Resources, Inc. 66,793 1,079 1,214 Tanzanian Royalty Exploration Corp. 72, Taseko Mines, Ltd. 148, Teck Resources, Ltd. 445,383 17,202 16,056 Thompson Creek Metals Co., Inc. 128,433 1, Timmins Gold Corp. 98, Torex Gold Resources, Inc. 458, Turquoise Hill Resources, Ltd. 309,808 4,155 2,324 Veris Gold Corp. 50, West Fraser Timber Co., Ltd. 26,359 1,031 1,845 Yamana Gold, Inc. 580,003 7,829 9, , ,446 Telecommunication Services 2.9% BCE, Inc. 197,293 6,214 8,405 Bell Aliant, Inc. 58,200 1,653 1,532 Manitoba Telecom Services, Inc. 51,208 1,689 1,662 Rogers Communications, Inc.- Class B 295,566 9,822 13,342 TELUS Corp. 116,508 4,643 7,525 24,021 32,466 Utilities 1.8% Algonquin Power & Utilities Corp. 115, Alterra Power Corp. 242, Atco, Ltd.-Class I 29,435 1,545 2,363 Atlantic Power Corp. 93,155 1,227 1,054 Boralex, Inc. 15, Canadian Utilities, Ltd.-Class A 43,886 2,155 3,145 Capital Power Corp. 53,617 1,243 1,219 Capstone Infrastructure Corp. 55, Fortis, Inc. 146,812 4,378 5,011 Innergex Renewable Energy, Inc. 72, Just Energy Group, Inc. 108,593 1,497 1,030 Northland Power, Inc. 61, ,153 TransAlta Corp. 192,654 3,957 2,907 Valener, Inc. 28, ,355 20,346 Total Canadian Common Stocks and Income Trusts 1,093,693 1,126,581 Transaction Costs (Note 2) (95) Total Investments 1,093,598 1,126,581 Other Assets and Liabilities 1.0% 11,076 Net Assets 1,137,657 The accompanying notes are an integral part of the financial statements. 17

18 BlackRock CDN MSCI Canada IMI Index Fund Portfolio Concentration (as a percentage of Net Assets) As at December 31, 2012 As at December 31, 2011 Portfolio by Category (%) (%) Consumer Discretionary Consumer Staples Energy Financials Health Care Industrials Information Technology Materials Telecommunication Services Utilities Other Assets and Liabilities Open futures contracts held by the Fund as at December 31, 2012 are shown in Note 4. The accompanying notes are an integral part of the financial statements. 18

19 BlackRock CDN US Equity Index Non-Taxable Fund Statement of Net Assets As at December Assets Investments - at fair * (Note 2) $ 4,244,818,475 $ 3,592,084,972 Cash 44,300,178 76,784,504 Margin due from brokers 1,600,964 - Securities lending income receivable 8, Dividends receivable 4,981,513 5,428,233 Tax reclaim on dividends receivable 224,991 72,836 Accounts receivable from issue of units 23,853,860 23,796,644 Accounts receivable for investment sales 628, ,901 4,320,416,852 3,698,743,987 Liabilities Margin due to brokers - 313,471 Operating expenses payable 80,592 64,224 Payables for redemption of units 3,860,223 12,353,838 3,940,815 12,731,533 Net Assets $ 4,316,476,037 $ 3,686,012,454 Net Assets per Class Class A $ 3,510,671,630 $ 3,193,175,920 Class D 805,804, ,836,534 $ 4,316,476,037 $ 3,686,012,454 Number of Units Issued and Outstanding (Note 8) Class A 349,733, ,962,356 Class D 46,073,247 31,974,733 Net Assets per Unit Class A $ $ 8.85 Class D $ $ Investments at Cost* $ 3,820,184,551 $ 3,542,311,735 * Includes short-term investments Approved by BlackRock Asset Management Canada Limited, Manager of the Funds Eric Léveillé, Director Noel Archard, Director The accompanying notes are an integral part of the financial statements. 19

20 BlackRock CDN US Equity Index Non-Taxable Fund Statement of Operations For the Years Ended December Revenue Dividend income $ 98,435,908 $ 83,032,459 Interest income* 111,810 17,268 Securities lending income 53, ,964 Net gain from futures contracts 11,992,253 1,088,797 Foreign exchange gain (loss) (56,514) 3,099,768 Withholding taxes (52,312) - 110,484,367 87,366,256 Expenses Custodian fees 193, ,125 Fund accounting expenses 122, ,300 Unitholder communication s 2, Audit fees 23,307 25,363 Securities filing fees 68,256 86,788 Independent review committee fees 1,738 4,107 Other operating expenses 11,985 8, , ,059 Net Investment Income for the Year 110,061,125 86,927,197 Gain on Investments Net realized gain on sale of investments 15,939,543 2,892,351 Transaction s (Note 2,13) (92,950) (85,433) Net change in unrealized appreciation in of investments 374,767,568 89,208,217 Net Gain on Investments 390,614,161 92,015,135 Increase in Net Assets from Operations $ 500,675,286 $ 178,942,332 Increase in Net Assets from Operations per Class Class A $ 425,113,511 $ 156,934,996 Class D 75,561,775 22,007,336 $ 500,675,286 $ 178,942,332 Increase in Net Assets from Operations per Unit Class A $ 1.20 $ 0.43 Class D $ 1.94 $ 0.77 * Interest Income, net of foreign exchange loss The accompanying notes are an integral part of the financial statements. 20

21 BlackRock CDN US Equity Index Non-Taxable Fund Statement of Changes in Net Assets For the Years Ended December Fund Class A Class D Net Assets - Beginning of Year $ 3,686,012,454 $ 3,644,437,776 $ 3,193,175,920 $ 3,264,925,448 $ 492,836,534 $ 379,512,328 Increase in Net Assets from Operations 500,675, ,942, ,113, ,934,996 75,561,775 22,007,336 Capital Transactions Proceeds from issue of units 495,495, ,246, ,351, ,014, ,144, ,231,458 Reinvestment of distributions 114,489, ,916,858 94,954,657 94,068,156 19,535,084 10,848,702 Redemption of units (365,707,389) (995,614,023) (301,969,092) (913,699,435) (63,738,297) (81,914,588) Net capital transactions 244,278,038 (32,450,796) (12,663,144) (134,616,368) 256,941, ,165,572 Distributions From net investment income (111,006,730) (86,324,542) (91,471,646) (75,475,840) (19,535,084) (10,848,702) From capital gains redemption in kind (Note 9) (3,483,011) (18,592,316) (3,483,011) (18,592,316) - Total distributions (114,489,741) (104,916,858) (94,954,657) (94,068,156) (19,535,084) (10,848,702) Increase (Decrease) in Net Assets for the Year 630,463,583 41,574, ,495,710 (71,749,528) 312,967, ,324,206 Net Assets - End of Year $ 4,316,476,037 $ 3,686,012,454 $ 3,510,671,630 $ 3,193,175,920 $ 805,804,407 $ 492,836,534 The accompanying notes are an integral part of the financial statements. 21

22 BlackRock CDN US Equity Index Non-Taxable Fund Par (000s)/ Short Term Investments Government Guaranteed 0.2% U.S. Treasury Bill 1.00% March 21, ,665 8,558 8,627 8,558 8,627 Total Short Term Investments 8,558 8,627 Common Stocks Consumer Discretionary 11.5% Abercrombie & Fitch Co.-Class A 26,951 1,522 1,287 Amazon.Com, Inc. 120,995 14,196 30,272 Apollo Group, Inc.-Class A 33,686 2, AutoNation, Inc. 13, AutoZone, Inc. 12,329 2,958 4,352 Beam, Inc. 53,110 3,206 3,230 Bed Bath & Beyond, Inc. 76,510 3,225 4,257 Best Buy Co., Inc. 89,081 3,547 1,050 Big Lots, Inc. 19, BorgWarner, Inc. 39,063 2,561 2,786 Cablevision Systems-NY Group A 71,969 2,358 1,071 CarMax, Inc. 76,371 1,920 2,855 Carnival Corp. 148,847 5,811 5,448 CBS Corp.-Class B 197,280 4,034 7,474 Chipotle Mexican Grill, Inc. 10,513 2,758 3,109 Coach, Inc. 94,707 3,721 5,236 Comcast Corp.-Class A 887,264 19,441 33,023 D.R. Horton, Inc. 93,180 1,774 1,833 Darden Restaurants, Inc. 42,917 1,682 1,926 Delphi Automotive PLC 98,579 3,544 3,753 DIRECTV 204,276 6,988 10,205 Discovery Communications-Class A 80,354 2,841 5,079 Dollar General Corp. 87,655 4,345 3,850 Dollar Tree, Inc. 75,836 3,263 3,063 Electrolux AB-Class B 103,259 3,354 1,493 Expedia, Inc. 31,054 1,515 1,900 Family Dollar Stores, Inc. 31,965 1,180 2,018 Ford Motor Co. 1,272,994 13,404 16,414 Fossil, Inc. 18,025 2,330 1,671 GameStop Corp.-Class A 40,337 1,510 1,007 Gannett Co., Inc. 76,664 2,487 1,374 Gap (The), Inc. 99,214 2,121 3,064 Garmin, Ltd. 36,428 1,522 1,480 Genuine Parts Co. 51,782 2,466 3,277 Goodyear Tire & Rubber Co. (The) 81,702 1,400 1,123 H&R Block, Inc. 90,523 1,937 1,673 Harley-Davidson, Inc. 75,526 2,988 3,674 Harman International Industries, Inc. 22,622 1,230 1,005 Hasbro, Inc. 38,578 1,328 1,378 Home Depot, Inc. 499,241 18,449 30,745 International Game Technology 88,767 2,069 1,252 Par (000s)/ Consumer Discretionary (continued) Interpublic Group of Cos., Inc. 143,937 1,621 1,581 JC Penney Co., Inc. 47,524 1, Johnson Controls, Inc. 228,288 6,645 6,972 Kohl s Corp. 70,631 3,914 3,023 Leggett & Platt, Inc. 47,130 1,070 1,278 Lennar Corp.-Class A 54,784 1,609 2,109 Lowe s Cos., Inc. 375,510 10,087 13,281 Ltd. Brands 79,897 1,981 3,744 Macy s, Inc. 131,956 3,347 5,127 Marriott International, Inc.-Class A 82,295 2,661 3,054 Mattel, Inc. 114,544 2,643 4,175 McDonald s Corp. 335,228 21,356 29,453 McGraw-Hill Cos. (The), Inc. 92,706 3,872 5,046 NetFlix, Inc. 18,535 3,128 1,711 Newell Rubbermaid, Inc. 95,977 1,959 2,128 News Corp.-Class A 673,220 10,741 17,113 Nike, Inc.-Class B 243,698 8,028 12,521 Nordstrom, Inc. 50,755 1,776 2,704 O Reilly Automotive, Inc. 38,676 1,851 3,444 Omnicom Group 88,190 3,878 4,388 PetSmart, Inc. 35,870 2,381 2,441 Priceline.Com, Inc. 16,649 4,787 10,297 Pulte Homes, Inc. 113,450 2,318 2,051 Ralph Lauren Corp. 20,459 1,934 3,054 Ross Stores, Inc. 74,233 2,030 4,002 Scripps Networks Interactive- Class A 29,001 1,242 1,673 Sherwin-Williams Co. (The) 28,568 1,969 4,375 Staples, Inc. 224,912 4,985 2,551 Starbucks Corp. 248,276 6,724 13,260 Starwood Hotels & Resorts Worldwide, Inc. 65,418 3,142 3,736 Target Corp. 217,289 11,499 12,800 Tiffany & Co. 39,771 1,845 2,271 Time Warner Cable 100,754 5,857 9,753 Time Warner, Inc. 316,143 12,971 15,056 TJX Cos., Inc. 243,478 4,666 10,291 Tripadvisor, Inc. 36,570 1,161 1,526 Urban Outfitters, Inc. 36,511 1,192 1,431 VF Corp. 29,419 2,454 4,422 Viacom, Inc.-Class B 154,111 7,407 8,094 Walt Disney Co. (The) 591,712 20,047 29,329 Washington Post Co. (The)-Class B 1, Whirlpool Corp. 25,985 2,015 2,634 Wyndham Worldwide Corp. 46,814 1,200 2,480 Wynn Resorts, Ltd. 26,522 2,086 2,968 Yum! Brands, Inc. 150,847 5,876 9, , ,282 The accompanying notes are an integral part of the financial statements. 22

23 BlackRock CDN US Equity Index Non-Taxable Fund Par (000s)/ Consumer Staples 10.3% Altria Group, Inc. 676,172 14,678 21,161 Archer-Daniels-Midland Co. 219,860 7,000 5,994 Avon Products, Inc. 144,220 4,426 2,064 Brown-Forman Corp.-Class B 50,590 2,061 3,184 Campbell Soup Co. 59,809 2,157 2,077 Clorox Co. 43,549 2,872 3,175 Coca-Cola Co. (The) 1,287,951 38,404 46,513 Coca-Cola Ent., Inc. 90,080 2,112 2,847 Colgate-Palmolive Co. 148,291 11,532 15,439 ConAgra Foods, Inc. 136,040 3,331 3,996 Constellation Brands, Inc.-Class A 50,535 1,156 1,781 Costco Wholesale Corp. 144,380 9,401 14,205 CVS Caremark Corp. 416,263 14,740 20,048 Dean Foods Co. 61,778 1,342 1,015 Dr Pepper Snapple Group, Inc. 69,464 2,072 3,055 Estee Lauder Cos. (The), Inc.-Class A 80,139 2,493 4,776 General Mills, Inc. 215,419 7,378 8,668 Hershey Co. (The) 49,919 2,527 3,590 HJ Heinz Co. 107,052 5,094 6,149 Hormel Foods Corp. 44, ,389 JM Smucker Co. (The) 36,204 2,072 3,109 Kellogg Co. 82,558 4,321 4,591 Kimberly-Clark Corp. 130,641 8,898 10,979 Kraft Foods Group, Inc. 197,786 6,496 8,951 Kroger Co. (The) 177,115 4,580 4,589 Lorillard, Inc. 43,213 3,587 5,019 McCormick & Co., Inc. 44,230 1,825 2,796 Mead Johnson Nutrition Co.-Class A 67,774 3,440 4,446 Molson Coors Brewing Co.-Class B 52,010 2,502 2,215 Mondelez International, Inc. 593,346 12,407 15,053 Monster Beverage Corp. 49,812 3,518 2,623 PepsiCo, Inc. 516,498 34,201 35,197 Philip Morris International, Inc. 557,806 29,457 46,460 Procter & Gamble Co. (The) 912,979 59,300 61,734 Reynolds American, Inc. 108,222 3,103 4,463 Safeway, Inc. 79,937 2,266 1,439 Sysco Corp. 196,237 6,071 6,186 Tyson Foods, Inc.-Class A 95,775 1,560 1,850 Wal-Mart Stores, Inc. 558,493 32,586 37,959 Walgreen Co. 286,829 11,428 10,576 Whole Foods Market, Inc. 57,600 3,144 5, , ,598 Energy 10.8% Anadarko Petroleum Corp. 166,860 9,904 12,348 Apache Corp. 130,640 12,293 10,208 Baker Hughes, Inc. 146,774 8,116 5,970 Cabot Oil & Gas Corp. 70,044 1,826 3,470 Par (000s)/ Energy (continued) Cameron International Corp. 82,360 3,532 4,629 Chesapeake Energy Corp. 173,041 5,093 2,862 Chevron Corp. 653,518 55,233 70,420 ConocoPhillips 405,315 20,184 23,411 Consol Energy, Inc. 76,023 3,494 2,430 Denbury Resources, Inc. 129,147 2,315 2,083 Devon Energy Corp. 125,746 9,146 6,516 Diamond Offshore Drilling, Inc. 23,195 1,837 1,570 Ensco PLC-Class A 77,543 4,391 4,575 EOG Resources, Inc. 90,441 8,230 10,876 Exxon Mobil Corp. 1,522, , ,274 FMC Technologies, Inc. 79,352 2,393 3,382 Halliburton Co. 309,832 10,271 10,705 Helmerich & Payne, Inc. 35,283 1,646 1,968 Hess Corp. 99,198 6,393 5,229 Kinder Morgan, Inc. 211,130 7,034 7,427 Marathon Oil Corp. 235,843 8,880 7,197 Marathon Petroleum Corp. 113,238 4,535 7,102 Murphy Oil Corp. 61,628 3,912 3,654 Nabors Industries, Ltd. 96,880 2,487 1,394 National Oilwell Varco, Inc. 142,532 7,400 9,703 Newfield Exploration Company 45,108 3,021 1,203 Noble Corp. 84,353 3,168 2,924 Noble Energy, Inc. 59,389 4,539 6,016 NRG Energy, Inc. 107,562 2,527 2,461 Occidental Petroleum Corp. 270,516 19,673 20,635 Peabody Energy Corp. 89,571 4,155 2,374 Phillips ,942 6,691 11,045 Pioneer Natural Resources Co. 41,138 2,540 4,367 QEP Resources, Inc. 59,435 1,969 1,791 Range Resources Corp. 54,285 2,791 3,396 Rowan Cos. PLC 41,432 1,328 1,290 Schlumberger, Ltd. 443,277 29,677 30,583 Southwestern Energy Co. 116,644 4,866 3,879 Spectra Energy Corp. 222,282 5,537 6,058 Tesoro Corp. 46,865 1,336 2,055 Valero Energy Corp. 184,799 6,141 6,274 Williams Cos., Inc. 224,962 5,950 7,331 WPX Energy, Inc. 66,432 1, , ,069 Financials 16.6% Aflac, Inc. 156,552 7,752 8,279 Allstate Corp. (The) 160,842 6,669 6,433 American Express Co. 325,072 14,613 18,605 American International Group, Inc. 492,924 37,339 17,325 American Tower Corp. REIT 131,998 5,976 10,152 Ameriprise Financial, Inc. 68,768 2,935 4,288 AON PLC 106,386 4,771 5,890 The accompanying notes are an integral part of the financial statements. 23

24 BlackRock CDN US Equity Index Non-Taxable Fund Par (000s)/ Financials (continued) Apartment Investment & Management Co. REIT-Class A 48,553 1,226 1,308 Assurant, Inc. 26,486 1, Australia & New Zealand Banking Group, Ltd. 74,996 2,483 2,638 AvalonBay Communities, Inc. REIT 38,185 4,363 5,154 Bank of America Corp. 3,598,838 74,128 41,603 Bank of New York Mellon Corp. 390,167 13,549 9,988 BB&T Corp. 233,578 7,488 6,770 Berkshire Hathaway, Inc.-Class B 609,064 49,331 54,447 BlackRock, Inc. 41,626 7,820 8,568 Boston Properties, Inc. REIT 50,364 4,325 5,306 Capital One Financial Corp. 194,212 9,908 11,204 CBRE Group, Inc. 100,680 1,887 1,996 Charles Schwab Corp. (The) 366,078 6,649 5,234 Chubb Corp. 87,451 4,867 6,558 Cincinnati Financial Corp. 48,860 1,810 1,904 Citigroup, Inc. 979,178 67,297 38,589 CME Group, Inc. 102,393 7,627 5,168 Comerica, Inc. 63,530 2,534 1,918 Discover Financial Services 168,520 3,133 6,469 E*Trade Financial Corp. 85,826 1, Equity Residential REIT 107,411 4,770 6,058 Fifth Third Bancorp 299,238 5,437 4,529 First Horizon National Corp. 82,805 1, Franklin Resources, Inc. 46,068 4,601 5,766 Genworth Financial, Inc.-Class A 164,060 2,967 1,227 Goldman Sachs Group, Inc. 147,496 21,974 18,742 Hartford Financial Services Group, Inc. 145,635 5,617 3,254 HCP, Inc. 150,924 5,121 6,786 Health Care, Inc. REIT 86,691 4,118 5,290 Host Hotels & Resorts, Inc. REIT 241,926 4,051 3,775 Hudson City Bancorp, Inc. 158,583 2,218 1,281 Huntington Bancshares, Inc. 285,463 2,442 1,816 IntercontinentalExchange, Inc. 24,273 3,016 2,991 Invesco, Ltd. 148,225 3,348 3,849 JPMorgan Chase & Co. 1,269,312 54,190 55,597 Keycorp 311,612 3,761 2,612 Kimco Realty Corp. REIT 136,048 2,852 2,617 Legg Mason, Inc. 39,259 2,142 1,005 Leucadia National Corp. 66,101 2,169 1,565 Lincoln National Corp. 91,785 3,253 2,366 Loews Corp. 103,799 3,888 4,212 M&T Bank Corp. 40,594 3,529 3,979 Marsh & McLennan Cos., Inc. 181,743 5,696 6,236 Merck & Co., Inc. 1,015,092 39,511 41,389 Metlife, Inc. 364,278 15,613 11,944 Moody s Corp. 64,730 2,396 3,243 Par (000s)/ Financials (continued) Morgan Stanley 461,412 15,564 8,784 NASDAQ OMX Group, Inc. 39,298 1, Northern Trust Corp. 72,841 4,402 3,637 NYSE Euronext 81,103 4,026 2,546 People s United Financial, Inc. 115,977 2,069 1,396 Plum Creek Timber Co., Inc. REIT 53,925 2,095 2,381 PNC Financial Services Group, Inc. 172,235 12,721 10,000 Principal Financial Group 92,107 3,153 2,616 Progressive Corp. (The) 185,722 3,950 3,902 ProLogis, Inc. REIT 153,870 5,962 5,591 Prudential Financial, Inc. 154,913 9,012 8,224 Public Storage, Inc. REIT 48,137 4,622 6,948 Regions Financial Corp. 471,647 5,226 3,344 Simon Property Group, Inc. REIT 103,288 9,328 16,259 SLM Corp. 154,247 3,346 2,632 State Street Corp. 155,712 8,306 7,289 SunTrust Banks, Inc. 179,880 6,719 5,076 T Rowe Price Group, Inc. 85,085 4,264 5,517 Torchmark Corp. 31,675 1,189 1,629 Travelers Cos. (The), Inc. 127,355 6,822 9,107 U.S. Bancorp 627,843 17,753 19,967 Unum Group 91,809 2,125 1,902 Ventas, Inc. REIT 98,671 4,500 6,357 Visa, Inc.-Class A 174,068 16,170 26,253 Vornado Realty Trust-REIT 56,547 4,608 4,508 Wells Fargo & Co. 1,634,730 60,278 55,684 XL Group PLC 100,326 2,804 2,502 Zions Bancorporation 61,444 2,030 1, , ,759 Health Care 11.0% Abbott Laboratories 527,788 29,304 34,427 Accenture PLC-Class A 213,194 12,690 14,116 Aetna, Inc. 111,698 4,042 5,150 Alexion Pharmaceuticals 64,862 6,210 6,053 Allergan, Inc. 102,677 6,497 9,374 AmerisourceBergen Corp. 82,049 2,212 3,528 Amgen, Inc. 256,217 16,929 22,029 Baxter International, Inc. 183,427 10,217 12,175 Becton Dickinson & Co. 65,752 4,956 5,120 Biogen Idec, Inc. 78,995 5,180 11,531 Boston Scientific Corp. 460,472 5,711 2,623 Bristol-Myers Squibb Co. 551,150 16,214 17,896 Cardinal Health, Inc. 113,427 4,638 4,651 CareFusion Corp. 74,058 2,166 2,107 Celgene Corp. 141,226 8,354 11,060 Cerner Corp. 48,679 2,343 3,763 Cigna Corp. 95,440 3,616 5,078 Coventry Health Care, Inc. 44,885 1,634 2,003 The accompanying notes are an integral part of the financial statements. 24

25 BlackRock CDN US Equity Index Non-Taxable Fund Par (000s)/ Health Care (continued) Covidien PLC 158,050 7,984 9,085 CR Bard, Inc. 25,549 2,184 2,486 DaVita, Inc. 27,979 1,804 3,078 DENTSPLY International, Inc. 47,362 1,678 1,867 Edwards Lifesciences Corp. 38,524 3,242 3,457 Eli Lilly & Co. 340,967 16,732 16,744 Express Scripts Holding Co. 272,585 15,281 14,651 Forest Laboratories, Inc. 78,133 2,924 2,748 Gilead Sciences, Inc. 252,972 11,104 18,511 Hospira, Inc. 55,131 2,505 1,714 Humana, Inc. 52,921 2,732 3,616 Intuitive Surgical, Inc. 13,275 3,925 6,477 Johnson & Johnson 925,345 62,401 64,588 Laboratory Corp. of America 31,574 2,382 2,722 Life Technologies Corp. 57,428 2,296 2,808 McKesson Corp. 78,805 4,921 7,609 Medtronic, Inc. 337,677 15,719 13,792 Mylan, Inc. 136,035 2,706 3,721 Patterson Cos., Inc. 27, PerkinElmer, Inc. 38, ,210 Perrigo Co. 29,456 2,999 3,050 Pfizer, Inc. 2,458,415 56,134 61,416 Quest Diagnostics, Inc. 53,061 2,976 3,077 St. Jude Medical, Inc. 102,871 4,391 3,703 Stryker Corp. 96,464 5,102 5,264 Tenet Healthcare Corp. 35,517 1,115 1,148 Thermo Fisher Scientific, Inc. 120,262 5,723 7,640 UnitedHealth Group, Inc. 341,068 14,024 18,420 Varian Medical Systems, Inc. 36,514 1,972 2,553 Waters Corp. 29,022 1,815 2,518 Watson Pharmaceuticals, Inc. 42,646 1,981 3,651 WellPoint, Inc. 101,375 6,439 6,150 Zimmer, Inc. 57,917 3,586 3, , ,946 Industrials 10.0% 3M Co. 212,549 17,451 19,650 ACE Aviation, Inc. 113,452 6,789 9,013 ADT Corp. 77,597 2,771 3,593 Avery Dennison Corp. 33,302 1,516 1,158 Boeing Co. 226,601 15,504 17,010 C.H. Robinson Worldwide, Inc. 53,805 3,397 3,387 Caterpillar, Inc. 218,344 15,360 19,484 Cintas Corp. 35,579 1,279 1,448 CSX Corp. 344,329 5,513 6,761 Cummins, Inc. 59,012 3,345 6,366 Danaher Corp. 194,269 7,794 10,817 Deere & Co. 130,769 7,697 11,252 Dover Corp. 59,815 2,943 3,917 Par (000s)/ Industrials (continued) Dun & Bradstreet Corp. 14,866 1,314 1,164 Eaton Corp. PLC 154,168 7,895 8,320 Emerson Electric Co. 241,777 11,382 12,754 Equifax, Inc. 39,913 1,458 2,151 Expeditors International of Washington, Inc. 69,751 3,131 2,746 Fastenal Co. 90,014 2,477 4,184 FedEx Corp. 97,524 8,549 8,908 Flowserve Corp. 16,648 1,578 2,433 Fluor Corp. 55,579 3,053 3,253 General Dynamics Corp. 110,804 7,682 7,642 General Electric Co. 3,501,459 89,496 73,145 Honeywell International, Inc. 261,560 12,474 16,532 Illinois Tool Works, Inc. 142,352 6,920 8,621 Ingersoll-Rand PLC 93,523 3,983 4,466 Iron Mountain, Inc. 55,660 1,619 1,720 Jacobs Engineering Group, Inc. 43,406 2,538 1,840 Joy Global, Inc. 35,335 3,160 2,244 L-3 Communications, Inc. 31,409 2,664 2,395 Lockheed Martin Corp. 89,669 7,551 8,243 Masco Corp. 119,166 2,297 1,978 Norfolk Southern Corp. 105,512 5,743 6,495 Northrop Grumman Corp. 81,939 5,127 5,514 Paccar, Inc. 117,855 4,850 5,303 Pall Corp. 37,707 1,496 2,262 Parker Hannifin Corp. 49,800 3,182 4,218 Pentair, Ltd. 70,194 3,058 3,435 Pitney Bowes, Inc. 66,922 2, Precision Castparts Corp. 48,591 5,900 9,161 Quanta Services, Inc. 71,132 1,736 1,932 Raytheon Co. 110,126 5,746 6,312 Republic Services, Inc. 99,818 2,859 2,916 Robert Half International, Inc. 46,955 1,448 1,487 Rockwell Automation, Inc. 46,503 2,748 3,889 Rockwell Collins, Inc. 46,798 2,542 2,710 Roper Industries, Inc. 32,843 2,174 3,644 Ryder System, Inc. 17, Snap-On, Inc. 19, ,528 Southwest Airlines Co. 246,303 3,184 2,511 Stanley Black & Decker, Inc. 56,344 3,190 4,150 Stericycle, Inc. 28,667 2,091 2,661 Textron, Inc. 94,055 2,658 2,320 Union Pacific Corp. 157,063 10,756 19,661 United Parcel Service, Inc.-Class B 238,902 17,322 17,541 United Technologies Corp. 281,549 19,199 22,991 W.W. Grainger, Inc. 19,951 2,180 4,020 Waste Management, Inc. 145,572 5,220 4,889 Xylem, Inc. 61,993 1,641 1, , ,374 The accompanying notes are an integral part of the financial statements. 25

26 BlackRock CDN US Equity Index Non-Taxable Fund Par (000s)/ Information Technology 17.8% Adobe Systems, Inc. 165,273 5,592 6,199 Advanced Micro Devices, Inc. 201,547 2, Agilent Technologies, Inc. 116,320 4,130 4,743 Akamai Technologies, Inc. 59,230 2,246 2,412 Altera Corp. 107,008 3,030 3,671 Amphenol Corp.-Class A 53,522 2,275 3,448 Analog Devices, Inc. 100,599 3,592 4,212 Apple, Inc. 314,108 68, ,706 Applied Materials, Inc. 402,354 6,708 4,579 Automatic Data Processing, Inc. 162,085 7,823 9,199 BMC Software, Inc. 47,776 1,733 1,886 Broadcom Corp.-Class A 173,224 6,059 5,726 CA, Inc. 112,066 2,895 2,451 Cisco Systems, Inc. 1,772,769 41,110 34,685 Citrix Systems, Inc. 62,328 2,892 4,080 Cognizant Technology Solutions Corp.-Class A 100,222 4,859 7,388 Computer Sciences Corp. 51,849 2,617 2,068 Corning, Inc. 493,374 9,702 6,195 Dell, Inc. 487,164 10,430 4,914 ebay, Inc. 388,848 11,774 19,758 EMC Corp. Massachusetts 703,393 14,460 17,726 F5 Networks, Inc. 26,384 3,393 2,550 Fidelity National Information Services, Inc. 83,183 2,257 2,884 First Solar, Inc. 20,067 2, Fiserv, Inc. 44,553 2,353 3,506 Flir Systems, Inc. 50,321 1,624 1,118 Google, Inc.-Class A 88,874 46,608 62,764 Harris Corp. 37,895 1,750 1,847 Hewlett-Packard Co. 656,442 26,614 9,308 Intel Corp. 1,661,495 39,171 34,129 International Business Machines Corp. 354,656 45,409 67,649 Intuit, Inc. 92,905 3,557 5,503 Jabil Circuit, Inc. 62,399 1,206 1,198 JDS Uniphase Corp. 78,026 2,345 1,050 Juniper Networks, Inc. 171,723 4,482 3,365 KLA-Tencor Corp. 55,577 2,393 2,643 Lam Research Corp. 59,378 1,978 2,135 Linear Technology Corp. 77,229 2,697 2,636 LSI Corp. 184,719 1,425 1,302 MasterCard, Inc.-Class A 35,681 9,732 17,467 Microchip Technology, Inc. 64,943 2,172 2,107 Micron Technology, Inc. 339,594 3,398 2,140 Microsoft Corp. 2,529,289 72,841 67,292 Molex, Inc. 46,090 1,226 1,253 Motorola Solutions, Inc. 93,640 4,847 5,191 NetApp, Inc. 119,600 4,159 3,995 NVIDIA Corp. 208,548 3,300 2,552 Par (000s)/ Information Technology (continued) Oracle Corp. 1,255,099 30,059 41,640 Paychex, Inc. 107,975 3,779 3,347 QUALCOMM, Inc. 568,979 27,441 35,136 Red Hat, Inc. 64,531 2,069 3,402 SAIC, Inc. 94,642 1,723 1,066 Salesforce.Com, Inc. 43,616 3,955 7,296 SanDisk Corp. 80,709 3,253 3,499 Seagate Technology PLC 115,007 2,901 3,490 Symantec Corp. 231,637 4,748 4,341 TE Connectivity, Ltd. 141,070 4,870 5,214 Teradata Corp. 56,445 1,898 3,477 Teradyne, Inc. 62, ,054 Texas Instruments, Inc. 374,212 11,504 11,532 Total System Services, Inc. 53,597 1,125 1,143 VeriSign, Inc. 51,810 1,518 2,003 Western Digital Corp. 73,179 2,407 3,096 Western Union Co. 199,115 3,896 2,698 Xerox Corp. 425,227 4,702 2,888 Xilinx, Inc. 87,092 2,626 3,112 Yahoo!, Inc. 347,463 7,471 6, , ,044 Materials 3.7% Air Products & Chemicals, Inc. 71,059 5,578 5,946 Airgas, Inc. 23,458 1,360 2,132 Alcoa, Inc. 356,210 6,709 3,075 Allegheny Technologies, Inc. 35,793 1,804 1,082 Ball Corp. 51,346 1,381 2,287 Bemis Co. 34,453 1,053 1,148 CF Industries, Inc. 20,988 2,487 4,244 Cliffs Natural Resources, Inc. 47,547 2,705 1,826 Dow Chemical Co. (The) 400,402 12,952 12,889 Eastman Chemical Co. 51,193 1,819 3,470 Ecolab, Inc. 88,009 4,408 6,300 EI Du Pont de Nemours & Co. 311,338 13,964 13,944 FMC Corp. 45,857 1,484 2,671 Freeport-McMoran Copper & Gold, Inc. 316,954 11,585 10,793 International Flavors & Fragrances, Inc. 27,218 1,274 1,803 International Paper Co. 146,605 4,249 5,816 LyondellBasell Industries-Class A 126,738 6,012 7,207 MeadWestvaco Corp. 58,329 1,576 1,851 Monsanto Co. 178,497 12,648 16,822 Mosaic Co. 92,364 5,399 5,208 Newmont Mining Corp. 165,738 8,546 7,664 Nucor Corp. 106,036 4,944 4,557 Owens-Illinois, Inc. 54,881 1,699 1,161 PPG Industries, Inc. 51,197 3,686 6,899 The accompanying notes are an integral part of the financial statements. 26

27 BlackRock CDN US Equity Index Non-Taxable Fund Par (000s)/ Materials (continued) Praxair, Inc. 99,203 7,982 10,805 Sealed Air Corp. 64,879 1,456 1,131 Sigma-Aldrich Corp. 40,162 2,123 2,942 Tyco International, Ltd. 155,467 6,271 4,525 United States Steel Corp. 48,127 2,551 1,143 Vulcan Materials Co. 43,251 2,641 2,241 Weyerhaeuser Co. 180,782 5,217 5, , ,592 Telecommunication Services 3.0% AT&T, Inc. 1,896,593 62,436 63,678 CenturyTel, Inc. 208,419 8,649 8,118 Crown Castle International Corp. 97,873 5,426 7,031 Frontier Communications Corp. 333,113 3,247 1,423 MetroPCS Communications, Inc. 105,649 1,429 1,046 Sprint Nextel Corp. 1,003,054 10,560 5,653 Verizon Communications, Inc. 952,935 35,801 41,047 Windstream Corp. 196,244 2,347 1, , ,618 Utilities 3.4% AES Corp. (The) 206,075 3,252 2,196 AGL Resources, Inc. 39,299 1,602 1,563 Ameren Corp. 80,980 3,105 2,478 American Electric Power Co., Inc. 162,003 6,270 6,883 Centerpoint Energy, Inc. 142,666 2,445 2,733 CMS Energy Corp. 88,072 1,546 2,137 Consolidated Edison, Inc. 97,773 4,860 5,405 Dominion Resources, Inc. 191,847 8,349 9,895 DTE Energy Co. 57,438 2,735 3,434 Duke Energy Corp. 235,138 13,086 14,935 Edison International 108,766 4,437 4,893 Entergy Corp. 59,329 4,928 3,765 EQT Corp. 49,937 2,095 2,932 Exelon Corp. 285,215 15,079 8,443 FirstEnergy Corp. 139,618 7,194 5,803 FPL Group, Inc. 141,297 8,033 9,732 Integrys Energy Group, Inc. 25,992 1,319 1,351 NiSource, Inc. 103,382 2,089 2,561 Northeast Utilities 104,799 3,349 4,077 ONEOK, Inc. 68,295 1,808 2,906 Pepco, Inc. 76,561 1,551 1,495 PG&E Corp. 143,548 6,262 5,743 Pinnacle West Capital Corp. 36,607 1,557 1,857 Par (000s)/ Utilities (continued) PPL Corp. 194,197 6,082 5,534 Public Service Enterprise Group, Inc. 168,892 5,924 5,144 Scana Corp. 43,981 1,852 1,999 Sempra Energy 75,088 4,048 5,302 Southern Co. (The) 291,848 11,355 12,437 TECO Energy, Inc. 67,908 1,234 1,133 Wisconsin Energy Corp. 76,791 2,104 2,817 Xcel Energy, Inc. 162,778 3,820 4, , ,909 Total Common Stocks 3,812,022 4,236,191 Transaction Costs (Note 2) (395) Total Investments 3,820,185 4,244,818 Other Assets and Liabilities 1.7% 71,658 Net Assets 4,316,476 Portfolio Concentration (as a percentage of Net Assets) As at December 31, 2012 As at December 31, 2011 Portfolio by Category (%) (%) Government Guaranteed Consumer Discretionary Consumer Staples Energy Financials Health Care Industrials Information Technology Materials Telecommunication Services Utilities Other Assets and Liabilities Open futures contracts held by the Fund as at December 31, 2012 are shown in Note 4. The accompanying notes are an integral part of the financial statements. 27

28 BlackRock CDN US Equity Index Plus Non-Taxable Fund Statement of Net Assets As at December Assets Investments - at fair * (Note 2) $ 263,530,267 $ 182,882,718 Cash 1,906,875 2,793,417 Margin due from brokers 65,338 - Dividends receivable 284, ,415 Tax reclaim on dividends receivable 12,217 3,921 Accounts receivable for investment sales 2,934,285 28, ,733, ,984,269 Liabilities Margin due to brokers - 12,301 Operating expenses payable 26,647 16,599 Payables for investment purchases 2,958,277 28,471 2,984,924 57,371 Net Assets $ 265,748,419 $ 185,926,898 Number of Units Issued and Outstanding (Note 8) 20,276,150 16,082,557 Net Assets per Unit $ $ Investments at Cost* $ 232,486,041 $ 167,600,596 * Includes short-term investments Approved by BlackRock Asset Management Canada Limited, Manager of the Funds Eric Léveillé, Director Noel Archard, Director The accompanying notes are an integral part of the financial statements. 28

29 BlackRock CDN US Equity Index Plus Non-Taxable Fund Statement of Operations For the Years Ended December Revenue Dividend income $ 5,247,437 $ 4,392,833 Interest income* 2,206 (5,450) Net gain from futures contracts 587, ,779 Foreign exchange gain (loss) (143,755) 114,384 Withholding taxes (5,258) - 5,688,521 4,786,546 Expenses Custodian fees 45,064 36,015 Fund accounting expenses 36,136 33,018 Unitholder communication s Audit fees 9,262 9,656 Securities filing fees 3,674 2,727 Independent review committee fees Other operating expenses 3,956 5,655 98,198 87,889 Net Investment Income for the Year 5,590,323 4,698,657 Gain on Investments Net realized gain on sale of investments 4,349,458 14,376,295 Transaction s (Note 2,13) (29,613) (47,249) Net change in unrealized appreciation (depreciation) in of investments 15,758,335 (6,869,404) Net Gain on Investments 20,078,180 7,459,642 Increase in Net Assets from Operations $ 25,668,503 $ 12,158,299 Increase in Net Assets from Operations per Unit $ 1.52 $ 0.71 * Interest Income, net of foreign exchange loss Statement of Changes in Net Assets For the Years Ended December Net Assets - Beginning of Year $ 185,926,898 $ 285,018,902 Increase in Net Assets from Operations 25,668,503 12,158,299 Capital Transactions Proceeds from issue of units 54,153,018 16,000,000 Reinvestment of distributions 11,941,285 20,385,981 Redemption of units - (127,250,303) Net capital transactions 66,094,303 (90,864,322) Distributions From net investment income (5,537,480) (4,773,049) From capital gains (6,403,805) (15,612,932) Total distributions (11,941,285) (20,385,981) Increase (Decrease) in Net Assets for the Year 79,821,521 (99,092,004) Net Assets - End of Year $ 265,748,419 $ 185,926,898 The accompanying notes are an integral part of the financial statements. 29

30 BlackRock CDN US Equity Index Plus Non-Taxable Fund Par (000s)/ Short Term Investments Government Guaranteed 0.1% U.S. Treasury Bill 1.00% March 21, Total Short Term Investments Common Stocks Consumer Discretionary 11.8% Abercrombie & Fitch Co.-Class A 1, Amazon.Com, Inc. 7,471 1,351 1,869 Apollo Group, Inc.-Class A AutoNation, Inc AutoZone, Inc Beam, Inc. 3, Bed Bath & Beyond, Inc. 4, Best Buy Co., Inc Big Lots, Inc BorgWarner, Inc. 2, Brookdale Senior Living, Inc. 1, Cablevision Systems-NY Group A CarMax, Inc. 5, Carnival Corp. 9, CBS Corp.-Class B 12, Chipotle Mexican Grill, Inc Cinemark, Inc. 1, Coach, Inc. 5, Comcast Corp.-Class A 29, ,082 Comcast Corp.-Special Class A 26, D.R. Horton, Inc. 5, Darden Restaurants, Inc. 2, Delphi Automotive PLC 6, Dick s Sporting Goods, Inc. 1, Dillard s, Inc.-Class A DIRECTV 12, Discovery Communications-Class A 4, Dollar General Corp. 5, Dollar Tree, Inc. 4, Electrolux AB-Class B 6, Expedia, Inc. 3, Family Dollar Stores, Inc. 1, Ford Motor Co. 78,434 1,020 1,011 Fossil, Inc. 1, GameStop Corp.-Class A 2, Gannett Co., Inc. 4, Gap (The), Inc. 6, Garmin, Ltd. 2, Genuine Parts Co. 3, Goodyear Tire & Rubber Co. (The) 4, H&R Block, Inc. 5, Par (000s)/ Consumer Discretionary (continued) Hanesbrands, Inc Harley-Davidson, Inc. 4, Harman International Industries, Inc. 1, Hasbro, Inc. 2, Home Depot, Inc. 31,398 1,305 1,934 International Game Technology 5, Interpublic Group of Cos., Inc. 8, JC Penney Co., Inc Johnson Controls, Inc. 14, Kohl s Corp. 2, Leggett & Platt, Inc. 2, Lennar Corp.-Class A 3, Liberty Media Corp LKQ Corp. 1, Lowe s Cos., Inc. 24, Ltd. Brands 7, Macy s, Inc. 8, Marriott International, Inc.-Class A 5, Mattel, Inc. 7, McDonald s Corp. 20,670 1,592 1,816 McGraw-Hill Cos. (The), Inc. 8, Mohawk Industries, Inc NetFlix, Inc. 1, Newell Rubbermaid, Inc. 7, News Corp.-Class A 41, ,054 Nike, Inc.-Class B 14, Nordstrom, Inc. 3, O Reilly Automotive, Inc. 2, Omnicom Group 5, Penn National Gaming, Inc PetSmart, Inc. 2, Priceline.Com, Inc. 1, Pulte Homes, Inc. 6, PVH Corp Ralph Lauren Corp. 1, Ross Stores, Inc. 4, Royal Caribbean Cruises, Ltd Scripps Networks Interactive-Class A 1, Service Corp. International 2, Sherwin-Williams Co. (The) 1, Staples, Inc. 13, Starbucks Corp. 15, Starwood Hotels & Resorts Worldwide, Inc. 4, Target Corp. 13, Thor Industries, Inc Tiffany & Co. 2, Time Warner Cable 6, The accompanying notes are an integral part of the financial statements. 30

31 BlackRock CDN US Equity Index Plus Non-Taxable Fund Par (000s)/ Consumer Discretionary (continued) Time Warner, Inc. 20, TJX Cos., Inc. 14, Tripadvisor, Inc. 2, Urban Outfitters, Inc. 2, VF Corp. 1, Viacom, Inc.-Class B 9, Virgin Media, Inc Walt Disney Co. (The) 36,536 1,461 1,811 Washington Post Co. (The)-Class B Whirlpool Corp. 1, Wyndham Worldwide Corp. 2, Wynn Resorts, Ltd. 1, Yum! Brands, Inc. 9, ,000 31,303 Consumer Staples 10.4% Altria Group, Inc. 41,799 1,050 1,308 Archer-Daniels-Midland Co. 13, Avon Products, Inc. 4, Brown-Forman Corp.-Class B 3, Campbell Soup Co. 3, Clorox Co. 2, Coca-Cola Co. (The) 79,452 2,481 2,869 Coca-Cola Ent., Inc. 5, Colgate-Palmolive Co. 9, ConAgra Foods, Inc. 8, Constellation Brands, Inc.-Class A 3, Costco Wholesale Corp. 9, CVS Caremark Corp. 25,703 1,010 1,238 Dean Foods Co. 3, Dr Pepper Snapple Group, Inc. 4, Estee Lauder Cos. (The), Inc.-Class A 4, General Mills, Inc. 13, Green Mountain Coffee Roasters, Inc Hershey Co. (The) 3, HJ Heinz Co. 6, Hormel Foods Corp. 2, Ingredion, Inc JM Smucker Co. (The) 2, Kellogg Co. 5, Kimberly-Clark Corp. 8, Kraft Foods Group, Inc. 12, Kroger Co. (The) 10, Lorillard, Inc. 2, McCormick & Co., Inc. 3, Mead Johnson Nutrition Co.-Class A 4, Molson Coors Brewing Co.-Class B 3, Mondelez International, Inc. 34, Monster Beverage Corp. 3, Par (000s)/ Consumer Staples (continued) PepsiCo, Inc. 31,854 2,131 2,171 Philip Morris International, Inc. 34,822 2,344 2,900 Procter & Gamble Co. (The) 56,371 3,683 3,812 Reynolds American, Inc. 6, Safeway, Inc. 4, Sysco Corp. 12, Tyson Foods, Inc.-Class A 5, Wal-Mart Stores, Inc. 34,916 2,051 2,373 Walgreen Co. 17, Whole Foods Market, Inc. 3, ,356 27,653 Energy 10.8% Anadarko Petroleum Corp. 10, Apache Corp. 7, Baker Hughes, Inc. 9, Cabot Oil & Gas Corp. 4, Cameron International Corp. 5, Chesapeake Energy Corp. 6, Chevron Corp. 40,339 3,559 4,347 ConocoPhillips 25,059 1,294 1,447 Consol Energy, Inc. 4, Denbury Resources, Inc. 8, Devon Energy Corp. 6, Diamond Offshore Drilling, Inc. 1, Ensco PLC-Class A 4, EOG Resources, Inc. 5, Exxon Mobil Corp. 93,969 6,876 8,103 FMC Technologies, Inc. 4, Halliburton Co. 19, Helmerich & Payne, Inc. 2, Hess Corp. 6, HollyFrontier Corp Kinder Morgan, Inc. 13, Marathon Oil Corp. 14, Marathon Petroleum Corp. 6, Murphy Oil Corp. 3, Nabors Industries, Ltd. 5, National Oilwell Varco, Inc. 8, Newfield Exploration Company Noble Corp. 5, Noble Energy, Inc. 3, NRG Energy, Inc. 6, Occidental Petroleum Corp. 15,891 1,363 1,212 PBF Energy, Inc. 8, Peabody Energy Corp. 5, Phillips 66 12, Pioneer Natural Resources Co. 2, QEP Resources, Inc. 3, The accompanying notes are an integral part of the financial statements. 31

32 BlackRock CDN US Equity Index Plus Non-Taxable Fund Par (000s)/ Energy (continued) Range Resources Corp. 3, Rowan Cos. PLC 2, Schlumberger, Ltd. 27,370 1,743 1,888 Seacor, Inc Southwestern Energy Co. 7, Spectra Energy Corp. 13, Tesoro Corp. 2, Valero Energy Corp. 11, Williams Cos., Inc. 16, WPX Energy, Inc. 4, ,413 28,745 Financials 16.9% Aflac, Inc. 10, AG Mortgage Investment Trust, Inc. 2, Allstate Corp. (The) 9, American Express Co. 20, ,151 American Financial Group, Inc American International Group, Inc. 30, ,072 American Tower Corp. REIT 8, Ameriprise Financial, Inc. 4, AON PLC 6, Apartment Investment & Management Co. REIT-Class A 3, Arch Capital Group, Ltd Assurant, Inc. 1, Australia & New Zealand Banking Group, Ltd. 4, AvalonBay Communities, Inc. REIT 2, Bank of America Corp. 222,208 2,743 2,569 Bank of New York Mellon Corp. 23, BB&T Corp. 14, Berkshire Hathaway, Inc.-Class B 37,635 3,067 3,364 BlackRock, Inc. 2, Boston Properties, Inc. REIT 3, Capital One Financial Corp. 11, Capitalsource, Inc. REIT 2, Capitol Federal Financial, Inc CBOE, Inc CBRE Group, Inc. 6, Charles Schwab Corp. (The) 22, Chubb Corp. 5, Cincinnati Financial Corp. 2, Citigroup, Inc. 60,459 2,316 2,383 CME Group, Inc. 7, Comerica, Inc. 3, Discover Financial Services 11, E*Trade Financial Corp. 5, Equity Residential REIT 6, Par (000s)/ Financials (continued) Extra Space Storage, Inc. REIT Fidelity National Financial, Inc. 1, Fifth Third Bancorp 18, First Horizon National Corp. 4, Franklin Resources, Inc. 3, Genworth Financial, Inc.-Class A 10, Goldman Sachs Group, Inc. 9,108 1,194 1,157 Hartford Financial Services Group, Inc. 8, HCC Insurance, Inc HCP, Inc. 9, Health Care, Inc. REIT 5, Home Loan Servicing Solutions, Ltd. 3, Host Hotels & Resorts, Inc. REIT 15, Hudson City Bancorp, Inc. 9, Huntington Bancshares, Inc. 17, Interactive Brokers Group, Inc.- Class A IntercontinentalExchange, Inc. 1, Invesco, Ltd. 9, Jefferies Group, Inc. 1, JPMorgan Chase & Co. 78,433 3,151 3,436 Keycorp 19, Kimco Realty Corp. REIT 8, Legg Mason, Inc. 2, Leucadia National Corp. 4, Lincoln National Corp. 5, Loews Corp. 6, M&T Bank Corp. 2, Markel Corp Marsh & McLennan Cos., Inc. 11, Merck & Co., Inc. 62,731 2,383 2,558 Metlife, Inc. 22, Moody s Corp. 4, Morgan Stanley 28, NASDAQ OMX Group, Inc. 2, Northern Trust Corp. 4, NYSE Euronext 3, People s United Financial, Inc. 7, Plum Creek Timber Co., Inc. REIT 3, PNC Financial Services Group, Inc. 10, Popular, Inc. 1, Principal Financial Group 5, ProAssurance Corp Progressive Corp. (The) 11, ProLogis, Inc. REIT 9, Prudential Financial, Inc. 9, Public Storage, Inc. REIT 2, Regions Financial Corp. 28, SEI Investments Co The accompanying notes are an integral part of the financial statements. 32

33 BlackRock CDN US Equity Index Plus Non-Taxable Fund Par (000s)/ Financials (continued) Simon Property Group, Inc. REIT 6, ,004 SLM Corp. 9, St. Joe Co. 1, State Street Corp. 9, SunTrust Banks, Inc. 11, T Rowe Price Group, Inc. 6, TD Ameritrade Holding Corp. 2, Torchmark Corp. 1, Travelers Cos. (The), Inc. 7, U.S. Bancorp 38,685 1,047 1,230 Unum Group 5, Ventas, Inc. REIT 6, Visa, Inc.-Class A 10,967 1,087 1,654 Vornado Realty Trust-REIT 3, Wells Fargo & Co. 100,995 3,098 3,440 XL Group PLC 6, Zions Bancorporation 3, ,416 45,014 Health Care 11.2% Abbott Laboratories 32,628 1,809 2,128 Accenture PLC-Class A 13, Aetna, Inc. 5, Alexion Pharmaceuticals 3, Allergan, Inc. 6, AmerisourceBergen Corp. 4, Amgen, Inc. 16,219 1,087 1,395 Baxter International, Inc. 11, Becton Dickinson & Co. 4, Biogen Idec, Inc. 5, BioMarin Pharmaceutical, Inc Boston Scientific Corp. 27, Bristol-Myers Squibb Co. 34, ,105 Cardinal Health, Inc. 6, CareFusion Corp. 4, Celgene Corp. 8, Cerner Corp. 3, Cigna Corp. 5, Community Health Systems, Inc Covance, Inc Coventry Health Care, Inc. 5, Covidien PLC 9, CR Bard, Inc. 1, DaVita, Inc. 1, DENTSPLY International, Inc. 2, Edwards Lifesciences Corp. 2, Eli Lilly & Co. 21, ,036 Express Scripts Holding Co. 16, Forest Laboratories, Inc. 4, Par (000s)/ Health Care (continued) Gilead Sciences, Inc. 16, ,176 Hospira, Inc. 1, Humana, Inc. 2, Intuitive Surgical, Inc Johnson & Johnson 57,171 3,684 3,991 Laboratory Corp. of America 1, Life Technologies Corp. 3, McKesson Corp. 4, Medtronic, Inc. 20, Mylan, Inc. 8, Patterson Cos., Inc. 1, PerkinElmer, Inc. 3, Perrigo Co. 1, Pfizer, Inc. 151,792 2,902 3,792 Quest Diagnostics, Inc. 3, Regeneron Pharmaceuticals, Inc Sirona Dental Systems, Inc St. Jude Medical, Inc. 4, Stryker Corp. 5, Team Health, Inc. 2, Tenet Healthcare Corp. 3, Thermo Fisher Scientific, Inc. 7, UnitedHealth Group, Inc. 21, ,140 Universal Health Services-Class B Varian Medical Systems, Inc. 2, Waters Corp. 1, Watson Pharmaceuticals, Inc. 2, WellPoint, Inc. 5, Zimmer, Inc. 3, ,074 29,675 Industrials 10.2% 3M Co. 13,133 1,119 1,214 ACE Aviation, Inc. 6, ADT Corp. 4, AMETEK, Inc Avery Dennison Corp. 2, Boeing Co. 13, ,050 C.H. Robinson Worldwide, Inc. 3, Caterpillar, Inc. 13,489 1,086 1,204 Cintas Corp. 2, CNH Global Colfax Corp Copart, Inc. 1, CSX Corp. 17, Cummins, Inc. 3, Danaher Corp. 12, Deere & Co. 8, Dover Corp. 3, The accompanying notes are an integral part of the financial statements. 33

34 BlackRock CDN US Equity Index Plus Non-Taxable Fund Par (000s)/ Industrials (continued) Dun & Bradstreet Corp Eaton Corp. PLC 9, Emerson Electric Co. 14, Equifax, Inc. 3, Expeditors International of Washington, Inc. 4, Fastenal Co. 5, FedEx Corp. 6, Flowserve Corp. 1, Fluor Corp. 3, General Dynamics Corp. 6, General Electric Co. 216,192 3,901 4,516 Honeywell International, Inc. 16, ,021 Illinois Tool Works, Inc. 8, Ingersoll-Rand PLC 5, Iron Mountain, Inc. 3, Jacobs Engineering Group, Inc. 2, Joy Global, Inc. 2, L-3 Communications, Inc. 1, Lincoln Electric, Inc Lockheed Martin Corp. 5, Masco Corp. 7, Nordson Corp Norfolk Southern Corp. 5, Northrop Grumman Corp. 5, Paccar, Inc. 7, Pall Corp. 2, Parker Hannifin Corp. 3, Pentair, Ltd. 4, Pitney Bowes, Inc Precision Castparts Corp. 2, Quanta Services, Inc. 4, Raytheon Co. 6, Republic Services, Inc. 6, Robert Half International, Inc. 2, Rockwell Automation, Inc. 2, Rockwell Collins, Inc. 2, Roper Industries, Inc. 2, Ryder System, Inc. 1, Snap-On, Inc. 1, Southwest Airlines Co. 15, Stanley Black & Decker, Inc. 3, Stericycle, Inc. 1, Textron, Inc. 5, Toro Co TRW Automotive Corp Union Pacific Corp. 9, ,211 United Parcel Service, Inc.-Class B 14,781 1,003 1,085 Par (000s)/ Industrials (continued) United Technologies Corp. 17,416 1,296 1,422 Valmont Industries, Inc Verisk Analytics, Inc.-Class A W.W. Grainger, Inc. 1, Waste Management, Inc. 9, Xylem, Inc. 3, ,771 27,000 Information Technology 17.6% Adobe Systems, Inc. 10, Advanced Micro Devices, Inc. 11, Agilent Technologies, Inc. 7, Akamai Technologies, Inc. 3, Altera Corp. 6, Amphenol Corp.-Class A 3, Analog Devices, Inc. 6, Apple, Inc. 19,398 7,459 10,295 Applied Materials, Inc. 24, Automatic Data Processing, Inc. 9, BMC Software, Inc. 2, Broadcom Corp.-Class A 10, CA, Inc. 4, Cisco Systems, Inc. 109,589 2,369 2,144 Citrix Systems, Inc. 2, Cognizant Technology Solutions Corp.-Class A 6, Computer Sciences Corp. 4, CoreLogic, Inc. 1, Corning, Inc. 30, Dell, Inc. 24, Dolby Laboratories, Inc.-Class A DST Systems, Inc ebay, Inc. 24, ,252 EMC Corp., Massachusetts 43,432 1,025 1,095 F5 Networks, Inc. 1, Fidelity National Information Services, Inc. 5, First Solar, Inc. 1, Fiserv, Inc. 3, Flir Systems, Inc Genpact, Ltd. 4, Google, Inc.-Class A 5,491 3,262 3,878 Harris Corp. 2, Hewlett-Packard Co. 36,027 1, Intel Corp. 99,371 2,277 2,041 International Business Machines Corp. 21,898 3,518 4,177 Intuit, Inc. 5, Jabil Circuit, Inc. 3, The accompanying notes are an integral part of the financial statements. 34

35 BlackRock CDN US Equity Index Plus Non-Taxable Fund Par (000s)/ Information Technology (continued) Jack Henry & Associates, Inc JDS Uniphase Corp. 4, Juniper Networks, Inc. 10, KLA-Tencor Corp. 3, Lam Research Corp. 3, Linear Technology Corp. 4, LSI Corp. 11, MasterCard, Inc.-Class A 2, ,115 Microchip Technology, Inc. 2, Micron Technology, Inc. 20, Microsoft Corp. 153,899 4,242 4,095 Molex, Inc. 2, Motorola Solutions, Inc. 5, NetApp, Inc. 7, NetSuite, Inc NVIDIA Corp. 7, Oracle Corp. 77,495 2,133 2,571 Paychex, Inc. 6, QUALCOMM, Inc. 35,132 1,895 2,170 Rackspace Hosting, Inc Red Hat, Inc. 3, SAIC, Inc. 6, Salesforce.Com, Inc. 2, SanDisk Corp. 4, Seagate Technology PLC 7, Symantec Corp. 14, TE Connectivity, Ltd. 8, Teradata Corp. 2, Teradyne, Inc. 3, Texas Instruments, Inc. 23, Total System Services, Inc. 3, Trimble Navigation, Ltd VeriSign, Inc. 1, Western Digital Corp. 3, Western Union Co. 7, Xerox Corp. 16, Xilinx, Inc. 5, Yahoo!, Inc. 21, ,931 46,880 Materials 3.7% Air Products & Chemicals, Inc. 4, Airgas, Inc. 1, Alcoa, Inc. 21, Allegheny Technologies, Inc Ball Corp. 3, Bemis Co. 2, CF Industries, Inc. 1, Cliffs Natural Resources, Inc. 1, Par (000s)/ Materials (continued) Dow Chemical Co. (The) 24, Eastman Chemical Co. 3, Ecolab, Inc. 5, EI Du Pont de Nemours & Co. 17, FMC Corp. 2, Freeport-McMoran Copper & Gold, Inc. 19, International Flavors & Fragrances, Inc. 1, International Paper Co. 9, Intrepid Potash, Inc LyondellBasell Industries-Class A 7, MeadWestvaco Corp. 3, Monsanto Co. 11, ,039 Mosaic Co. 5, NewMarket Corp Newmont Mining Corp. 8, Nucor Corp. 6, Osisko Mining Corp. 1, Owens-Illinois, Inc. 3, PPG Industries, Inc. 3, Praxair, Inc. 6, Sealed Air Corp. 3, Sigma-Aldrich Corp. 2, Tyco International, Ltd. 7, United States Steel Corp. 2, Valspar Corp Vulcan Materials Co. 3, Westlake Chemical Corp Weyerhaeuser Co. 12, ,820 9,739 Telecommunication Services 3.0% AT&T, Inc. 117,103 3,437 3,932 CenturyTel, Inc. 12, Clearwire Corp.-Class A 11, Crown Castle International Corp. 6, Frontier Communications Corp. 20, MetroPCS Communications, Inc. 6, SBA Communications Corp.-Class A Sprint Nextel Corp. 62, Verizon Communications, Inc. 58,899 2,020 2,537 Windstream Corp. 4, ,958 8,041 Utilities 3.4% AES Corp. (The) 6, AGL Resources, Inc. 2, Ameren Corp. 4, American Electric Power Co., Inc. 10, The accompanying notes are an integral part of the financial statements. 35

36 BlackRock CDN US Equity Index Plus Non-Taxable Fund Par (000s)/ Utilities (continued) Centerpoint Energy, Inc. 8, CMS Energy Corp. 5, Consolidated Edison, Inc. 6, Dominion Resources, Inc. 11, DTE Energy Co. 3, Duke Energy Corp. 14, Edison International 6, Entergy Corp. 3, EQT Corp. 3, Exelon Corp. 15, FirstEnergy Corp. 8, FPL Group, Inc. 8, Integrys Energy Group, Inc. 1, NiSource, Inc. 6, Northeast Utilities 6, ONEOK, Inc. 4, Pepco, Inc. 4, PG&E Corp. 8, Pinnacle West Capital Corp. 2, PPL Corp. 12, Public Service Enterprise Group, Inc. 10, Scana Corp. 2, Sempra Energy 4, Southern Co. (The) 17, TECO Energy, Inc. 4, Wisconsin Energy Corp. 4, Xcel Energy, Inc. 10, ,190 8,884 Total Common Stocks 231, ,934 Portfolio Concentration (as a percentage of Net Assets) As at December 31, 2012 As at December 31, 2011 Portfolio by Category (%) (%) Government Guaranteed Consumer Discretionary Consumer Staples Energy Financials Health Care Industrials Information Technology Materials Telecommunication Services Utilities Foreign Index Equivalents Other Assets and Liabilities Open futures contracts held by the Fund as at December 31, 2012 are shown in Note 4. Foreign Index Equivalents 0.1% SPDR S&P 500 ETF Trust 2, Total Foreign Index Equivalents Transaction Costs (Note 2) (33) Total Investments 232, ,530 Other Assets and Liabilities 0.8% 2,218 Net Assets 265,748 The accompanying notes are an integral part of the financial statements. 36

37 BlackRock CDN US Equity Index Hedged Non-Taxable Fund Statement of Net Assets As at December Assets Investments - at fair (Note 2) $ 804,656,007 $ 754,924,811 Cash 8,525 10,988 Net unrealized gain on forward currency contracts (Note 5) 2,854,214 16,862,137 Accounts receivable from issue of units 18,207,277 7,999,990 Accounts receivable for investment sales 1,529, ,255, ,797,926 Liabilities Operating expenses payable 20,479 19,887 Payables for redemption of units 3,532,225 10,889,693 Payables for investment purchases 17,679,576 6,083,836 Net unrealized loss on forward currency contracts (Note 5) 4,222,334 4,001,678 25,454,614 20,995,094 Net Assets $ 801,800,634 $ 758,802,832 Number of Units Issued and Outstanding (Note 8) 64,207,061 70,580,491 Net Assets per Unit $ $ Investments at Cost $ 707,599,710 $ 724,255,856 Approved by BlackRock Asset Management Canada Limited, Manager of the Funds Eric Léveillé, Director Noel Archard, Director The accompanying notes are an integral part of the financial statements. 37

38 BlackRock CDN US Equity Index Hedged Non-Taxable Fund Statement of Operations For the Years Ended December Revenue Dividend income $ 21,288,876 $ 18,938,336 Interest income ,289,585 18,938,500 Expenses Custodian fees Fund accounting expenses 12,127 13,303 Unitholder communication s Audit fees 14,055 14,915 Securities filing fees 13,308 12,448 Independent review committee fees Other operating expenses 2,289 2,945 42,346 45,368 Net Investment Income for the Year 21,247,239 18,893,132 Gain (Loss) on Investments Net realized gain on sale of investments 12,612,567 5,056,620 Net realized gain (loss) from forward currency contracts 33,249,029 (11,234,033) Net change in unrealized appreciation in of investments 66,387,342 8,000,194 Net change in unrealized depreciation in of forward currency contracts (14,228,579) (5,096,582) Net Gain (Loss) on Investments 98,020,359 (3,273,801) Increase in Net Assets from Operations $ 119,267,598 $ 15,619,331 Increase in Net Assets from Operations per Unit $ 1.76 $ 0.21 Statement of Changes in Net Assets For the Years Ended December Net Assets - Beginning of Year $ 758,802,832 $ 870,252,124 Increase in Net Assets from Operations 119,267,598 15,619,331 Capital Transactions Proceeds from issue of units 33,007,395 50,950,684 Reinvestment of distributions 23,425,288 18,893,047 Redemption of units (109,277,191) (178,019,307) Net capital transactions (52,844,508) (108,175,576) Distributions From net investment income (21,247,242) (18,893,047) From capital gains redemption in kind (Note 9) (2,178,046) - Total distributions (23,425,288) (18,893,047) Increase (Decrease) in Net Assets for the Year 42,997,802 (111,449,292) Net Assets - End of Year $ 801,800,634 $ 758,802,832 The accompanying notes are an integral part of the financial statements. 38

39 BlackRock CDN US Equity Index Hedged Non-Taxable Fund Foreign Index Equivalents 100.4% BlackRock CDN US Equity Index Non-Taxable Class A 80,167, , ,656 Total Foreign Index Equivalents 707, ,656 Total Investments 707, ,656 Other Assets and Liabilities (0.4)% (2,855) Net Assets 801,801 Portfolio Concentration (as a percentage of Net Assets) As at December 31, 2012 As at December 31, 2011 Portfolio by Category (%) (%) Foreign Index Equivalents Other Assets and Liabilities (0.4) 0.5 Open forward currency contracts held by the Fund as at December 31, 2012 as shown in Note 5. The accompanying notes are an integral part of the financial statements. 39

40 BlackRock CDN US Equity Index Fund Statement of Net Assets As at December Assets Investments - at fair * (Note 2) $ 2,688,930,323 $ 1,732,096,304 Cash 47,384,864 35,964,091 Margin due from brokers 1,523,105 - Dividends receivable 2,967,458 2,219,588 Tax reclaim on dividends receivable 119,363 34,224 Accounts receivable from issue of units 1,001,432 5,111,655 Accounts receivable for investment sales 397, ,298 2,742,324,361 1,775,700,160 Liabilities Margin due to brokers - 147,204 Operating expenses payable 63,268 45,551 Payables for redemption of units 2,029,641-2,092, ,755 Net Assets $ 2,740,231,452 $ 1,775,507,405 Net Assets per Class Class A $ 777,996,585 $ 680,359,540 Class D 1,962,234,867 1,095,147,865 $ 2,740,231,452 $ 1,775,507,405 Number of Units Issued and Outstanding (Note 8) Class A 90,299,438 89,288,642 Class D 227,768, ,736,013 Net Assets per Unit Class A $ 8.62 $ 7.62 Class D $ 8.62 $ 7.62 Investments at Cost* $ 2,532,472,506 $ 1,773,540,975 * Includes short-term investments Approved by BlackRock Asset Management Canada Limited, Manager of the Funds Eric Léveillé, Director Noel Archard, Director The accompanying notes are an integral part of the financial statements. 40

41 BlackRock CDN US Equity Index Fund Statement of Operations For the Years Ended December Revenue Dividend income $ 54,284,559 $ 38,625,404 Interest income* 61,770 (25,337) Net gain (loss) from futures contracts 8,082,413 (784,936) Foreign exchange gain (loss) (1,089,643) 1,091,410 Withholding taxes (7,539,639) (5,190,250) 53,799,460 33,716,291 Expenses Custodian fees 157,992 91,749 Fund accounting expenses 84,927 69,431 Unitholder communication s Audit fees 22,465 23,902 Securities filing fees 38,956 26,269 Independent review committee fees 871 1,925 Other operating expenses 8,383 7, , ,499 Net Investment Income for the Year 53,484,869 33,494,792 Gain on Investments Net realized gain (loss) on sale of investments 5,444,856 (6,705,483) Transaction s (Note 2,13) (95,359) (31,486) Net change in unrealized appreciation in of investments 197,850,185 45,268,404 Net Gain on Investments 203,199,682 38,531,435 Increase in Net Assets from Operations $ 256,684,551 $ 72,026,227 Increase in Net Assets from Operations per Class Class A $ 89,460,312 $ 27,909,341 Class D 167,224,239 44,116,886 $ 256,684,551 $ 72,026,227 Increase in Net Assets from Operations per Unit Class A $ 0.99 $ 0.31 Class D $ 0.95 $ 0.33 * Interest Income, net of foreign exchange loss The accompanying notes are an integral part of the financial statements. 41

42 BlackRock CDN US Equity Index Fund Statement of Changes in Net Assets For the Years Ended December Fund Class A Class D Net Assets - Beginning of Year $ 1,775,507,405 $ 1,536,583,652 $ 680,359,540 $ 652,883,701 $ 1,095,147,865 $ 883,699,951 Increase in Net Assets from Operations 256,684,551 72,026,227 89,460,312 27,909, ,224,239 44,116,886 Capital Transactions Proceeds from issue of units 806,673, ,050,665 8,514, , ,159, ,890,499 Reinvestment of distributions 52,984,471 33,213,899 16,274,767 13,018,190 36,709,704 20,195,709 Redemption of units (98,634,312) (72,153,139) (338,072) (593,668) (98,296,240) (71,559,471) Net capital transactions 761,023, ,111,425 24,451,500 12,584, ,572, ,526,737 Distributions From net investment income (52,984,471) (33,213,899) (16,274,767) (13,018,190) (36,709,704) (20,195,709) Total distributions (52,984,471) (33,213,899) (16,274,767) (13,018,190) (36,709,704) (20,195,709) Increase in Net Assets for the Year 964,724, ,923,753 97,637,045 27,475, ,087, ,447,914 Net Assets - End of Year $ 2,740,231,452 $ 1,775,507,405 $ 777,996,585 $ 680,359,540 $ 1,962,234,867 $ 1,095,147,865 The accompanying notes are an integral part of the financial statements. 42

43 BlackRock CDN US Equity Index Fund Par (000s)/ Short Term Investments Government Guaranteed 0.2% U.S. Treasury Bill 1.00% March 21, ,860 4,796 4,838 4,796 4,838 Total Short Term Investments 4,796 4,838 Common Stocks Consumer Discretionary 11.5% Abercrombie & Fitch Co.-Class A 16, Amazon.Com, Inc. 76,665 10,474 19,181 Apollo Group, Inc.-Class A 21,270 1, AutoNation, Inc. 8, AutoZone, Inc. 7,817 2,042 2,759 Beam, Inc. 33,657 2,264 2,047 Bed Bath & Beyond, Inc. 48,508 2,290 2,699 Best Buy Co., Inc. 56,093 2, Big Lots, Inc. 12, BorgWarner, Inc. 24,756 1,636 1,765 Cablevision Systems-NY Group A 45,515 1, CarMax, Inc. 48,441 1,236 1,811 Carnival Corp. 94,360 3,954 3,454 CBS Corp.-Class B 125,044 3,292 4,737 Chipotle Mexican Grill, Inc. 6,650 1,811 1,967 Coach, Inc. 60,006 2,494 3,317 Comcast Corp.-Class A 562,223 14,419 20,926 D.R. Horton, Inc. 59,095 1,290 1,163 Darden Restaurants, Inc. 27,270 1,126 1,224 Delphi Automotive PLC 62,471 2,246 2,379 DIRECTV 127,835 4,659 6,386 Discovery Communications-Class A 50,550 1,985 3,195 Dollar General Corp. 55,578 2,753 2,441 Dollar Tree, Inc. 48,093 2,111 1,942 Electrolux AB-Class B 64,623 2, Expedia, Inc. 19,758 1,075 1,209 Family Dollar Stores, Inc. 20, ,280 Ford Motor Co. 806,611 8,142 10,401 Fossil, Inc. 11,439 1,344 1,060 GameStop Corp.-Class A 25, Gannett Co., Inc. 48,810 2, Gap (The), Inc. 62,912 1,529 1,943 Garmin, Ltd. 23, Genuine Parts Co. 32,880 1,692 2,081 Goodyear Tire & Rubber Co. (The) 51, H&R Block, Inc. 57,188 1,299 1,057 Harley-Davidson, Inc. 47,881 2,291 2,329 Harman International Industries, Inc. 14, Hasbro, Inc. 24, Home Depot, Inc. 316,351 13,260 19,482 International Game Technology 56,333 1, Par (000s)/ Consumer Discretionary (continued) Interpublic Group of Cos., Inc. 91,328 1,015 1,003 JC Penney Co., Inc. 30,172 1, Johnson Controls, Inc. 144,657 4,070 4,418 Kohl s Corp. 44,792 2,475 1,917 Leggett & Platt, Inc. 30, Lennar Corp.-Class A 34,721 1,230 1,337 Lowe s Cos., Inc. 237,975 6,879 8,417 Ltd. Brands 50,631 1,573 2,372 Macy s, Inc. 83,653 2,629 3,250 Marriott International, Inc.-Class A 52,097 1,789 1,933 Mattel, Inc. 72,586 1,905 2,646 McDonald s Corp. 212,423 13,787 18,664 McGraw-Hill Cos. (The), Inc. 58,770 2,738 3,199 NetFlix, Inc. 11,714 1,682 1,081 Newell Rubbermaid, Inc. 60,925 1,316 1,351 News Corp.-Class A 426,625 8,174 10,845 Nike, Inc.-Class B 154,444 5,456 7,935 Nordstrom, Inc. 32,228 1,297 1,717 O Reilly Automotive, Inc. 24,261 1,363 2,161 Omnicom Group 55,850 2,628 2,779 PetSmart, Inc. 22,683 1,507 1,544 Priceline.Com, Inc. 10,550 3,715 6,525 Pulte Homes, Inc. 71,902 1,714 1,300 Ralph Lauren Corp. 12,966 1,391 1,935 Ross Stores, Inc. 47,061 1,638 2,537 Scripps Networks Interactive-Class A 18, ,061 Sherwin-Williams Co. (The) 18,104 1,495 2,773 Staples, Inc. 142,651 2,847 1,618 Starbucks Corp. 157,341 5,204 8,403 Starwood Hotels & Resorts Worldwide, Inc. 41,454 2,185 2,367 Target Corp. 137,704 7,727 8,112 Tiffany & Co. 25,284 1,271 1,444 Time Warner Cable 63,856 3,980 6,181 Time Warner, Inc. 200,255 8,044 9,537 TJX Cos., Inc. 154,311 3,750 6,522 Tripadvisor, Inc. 23, Urban Outfitters, Inc. 23, VF Corp. 18,642 1,838 2,802 Viacom, Inc.-Class B 97,764 5,330 5,135 Walt Disney Co. (The) 374,947 14,118 18,585 Washington Post Co. (The)-Class B Whirlpool Corp. 16,468 1,345 1,669 Wyndham Worldwide Corp. 29,694 1,006 1,573 Wynn Resorts, Ltd. 16,843 1,360 1,885 Yum! Brands, Inc. 95,604 4,160 6, , ,355 The accompanying notes are an integral part of the financial statements. 43

44 BlackRock CDN US Equity Index Fund Par (000s)/ Consumer Staples 10.3% Altria Group, Inc. 428,481 10,539 13,409 Archer-Daniels-Midland Co. 139,335 4,139 3,799 Avon Products, Inc. 91,149 2,841 1,304 Brown-Forman Corp.-Class B 32,111 1,459 2,021 Campbell Soup Co. 37,998 1,398 1,320 Clorox Co. 27,598 1,894 2,012 Coca-Cola Co. (The) 816,104 25,792 29,473 Coca-Cola Ent., Inc. 57,116 1,415 1,805 Colgate-Palmolive Co. 93,967 7,795 9,783 ConAgra Foods, Inc. 86,208 2,327 2,532 Constellation Brands, Inc.-Class A 32, ,129 Costco Wholesale Corp. 91,484 6,465 9,001 CVS Caremark Corp. 263,783 9,702 12,704 Dean Foods Co. 38, Dr Pepper Snapple Group, Inc. 44,051 1,447 1,937 Estee Lauder Cos. (The), Inc.-Class A 50,823 1,843 3,029 General Mills, Inc. 136,533 4,800 5,494 Hershey Co. (The) 31,652 1,818 2,276 HJ Heinz Co. 67,835 3,396 3,897 Hormel Foods Corp. 28, JM Smucker Co. (The) 22,959 1,392 1,971 Kellogg Co. 52,316 2,779 2,909 Kimberly-Clark Corp. 82,796 6,265 6,958 Kraft Foods Group, Inc. 125,327 4,408 5,672 Kroger Co. (The) 108,739 2,683 2,817 Lorillard, Inc. 27,395 2,520 3,182 McCormick & Co., Inc. 27,984 1,307 1,769 Mead Johnson Nutrition Co.-Class A 42,996 2,355 2,821 Molson Coors Brewing Co.-Class B 33,059 1,520 1,408 Mondelez International, Inc. 375,963 8,356 9,538 Monster Beverage Corp. 31,561 2,150 1,662 PepsiCo, Inc. 327,282 22,288 22,303 Philip Morris International, Inc. 353,451 21,116 29,439 Procter & Gamble Co. (The) 578,497 38,372 39,117 Reynolds American, Inc. 68,611 2,241 2,830 Safeway, Inc. 50,515 1, Sysco Corp. 124,349 4,278 3,920 Tyson Foods, Inc.-Class A 60,573 1,036 1,170 Wal-Mart Stores, Inc. 353,891 22,518 24,053 Walgreen Co. 181,747 7,295 6,701 Whole Foods Market, Inc. 36,500 2,447 3, , ,911 Energy 10.7% Anadarko Petroleum Corp. 105,729 6,171 7,824 Apache Corp. 82,779 7,322 6,469 Baker Hughes, Inc. 93,006 4,935 3,783 Cabot Oil & Gas Corp. 44,306 1,398 2,195 Cameron International Corp. 52,190 2,356 2,933 Par (000s)/ Energy (continued) Chesapeake Energy Corp. 109,504 3,100 1,811 Chevron Corp. 414,097 35,924 44,621 ConocoPhillips 256,818 13,034 14,834 Consol Energy, Inc. 48,322 2,032 1,544 Denbury Resources, Inc. 81,915 1,410 1,321 Devon Energy Corp. 79,681 5,278 4,129 Diamond Offshore Drilling, Inc. 14,663 1, Ensco PLC-Class A 49,138 2,767 2,899 EOG Resources, Inc. 57,308 4,987 6,892 Exxon Mobil Corp. 964,634 74,220 83,178 FMC Technologies, Inc. 50,297 1,627 2,144 Halliburton Co. 196,323 6,261 6,783 Helmerich & Payne, Inc. 22,296 1,021 1,243 Hess Corp. 62,883 3,578 3,315 Kinder Morgan, Inc. 133,793 4,346 4,707 Marathon Oil Corp. 149,443 5,137 4,561 Marathon Petroleum Corp. 71,755 3,028 4,500 Murphy Oil Corp. 39,101 2,377 2,318 Nabors Industries, Ltd. 61,246 1, National Oilwell Varco, Inc. 90,315 4,940 6,148 Newfield Exploration Company 28,467 1, Noble Corp. 53,570 1,978 1,857 Noble Energy, Inc. 37,633 2,916 3,812 NRG Energy, Inc. 68,167 1,579 1,560 Occidental Petroleum Corp. 171,406 11,859 13,075 Peabody Energy Corp. 56,611 2,327 1,500 Phillips ,299 4,460 6,994 Pioneer Natural Resources Co. 26,069 1,831 2,767 QEP Resources, Inc. 37,827 1,215 1,140 Range Resources Corp. 34,441 1,869 2,155 Rowan Cos. PLC 26, Schlumberger, Ltd. 280,869 18,728 19,378 Southwestern Energy Co. 73,917 3,007 2,458 Spectra Energy Corp. 140,852 3,692 3,839 Tesoro Corp. 29, ,303 Valero Energy Corp. 117,100 4,013 3,976 Williams Cos., Inc. 142,549 3,779 4,646 WPX Energy, Inc. 41, , ,681 Financials 16.6% Aflac, Inc. 99,200 4,843 5,246 Allstate Corp. (The) 101,953 4,563 4,078 American Express Co. 205,998 10,926 11,790 American International Group, Inc. 312,331 26,370 10,978 American Tower Corp. REIT 83,640 4,292 6,433 Ameriprise Financial, Inc. 43,559 1,990 2,716 AON PLC 67,437 2,945 3,733 The accompanying notes are an integral part of the financial statements. 44

45 BlackRock CDN US Equity Index Fund Par (000s)/ Financials (continued) Apartment Investment & Management Co. REIT-Class A 30, Assurant, Inc. 16, Australia & New Zealand Banking Group, Ltd. 47,566 1,578 1,673 AvalonBay Communities, Inc. REIT 24,197 3,057 3,266 Bank of America Corp. 2,280,289 49,235 26,360 Bank of New York Mellon Corp. 247,278 8,074 6,330 BB&T Corp. 148,009 5,080 4,290 Berkshire Hathaway, Inc.-Class B 385,927 31,621 34,500 BlackRock, Inc. 27,000 5,007 5,557 Boston Properties, Inc. REIT 31,915 3,057 3,362 Capital One Financial Corp. 123,061 7,129 7,099 CBRE Group, Inc. 63,699 1,188 1,263 Charles Schwab Corp. (The) 231,975 3,716 3,317 Chubb Corp. 55,432 3,253 4,157 Cincinnati Financial Corp. 30,856 1,217 1,203 Citigroup, Inc. 620,425 45,930 24,451 CME Group, Inc. 64,884 5,188 3,275 Comerica, Inc. 40,301 1,709 1,217 Discover Financial Services 106,820 2,582 4,100 E*Trade Financial Corp. 54,126 1, Equity Residential REIT 68,063 3,279 3,839 Fifth Third Bancorp 189,938 4,038 2,875 First Horizon National Corp. 51, Franklin Resources, Inc. 29,161 3,018 3,650 Genworth Financial, Inc.-Class A 103,715 1, Goldman Sachs Group, Inc. 93,468 13,167 11,877 Hartford Financial Services Group, Inc. 92,390 3,753 2,064 HCP, Inc. 95,635 3,524 4,300 Health Care, Inc. REIT 54,934 2,754 3,352 Host Hotels & Resorts, Inc. REIT 153,309 2,759 2,392 Hudson City Bancorp, Inc. 100,247 1, Huntington Bancshares, Inc. 181,074 1,648 1,152 IntercontinentalExchange, Inc. 15,352 1,980 1,892 Invesco, Ltd. 93,942 2,177 2,439 JPMorgan Chase & Co. 804,256 35,026 35,227 Keycorp 197,638 2,581 1,657 Kimco Realty Corp. REIT 86,367 1,971 1,661 Legg Mason, Inc. 24,835 1, Leucadia National Corp. 41,787 1, Lincoln National Corp. 58,220 2,152 1,501 Loews Corp. 65,700 2,508 2,666 M&T Bank Corp. 25,724 2,370 2,522 Marsh & McLennan Cos., Inc. 115,164 4,007 3,951 Merck & Co., Inc. 643,181 26,605 26,225 Metlife, Inc. 230,820 9,445 7,568 Moody s Corp. 41,021 1,676 2,055 Morgan Stanley 292,373 9,619 5,566 Par (000s)/ Financials (continued) NASDAQ OMX Group, Inc. 24, Northern Trust Corp. 46,180 2,611 2,306 NYSE Euronext 51,440 2,643 1,615 People s United Financial, Inc. 73,277 1, Plum Creek Timber Co., Inc. REIT 34,076 1,353 1,504 PNC Financial Services Group, Inc. 111,890 9,051 6,496 Principal Financial Group 58,527 2,058 1,662 Progressive Corp. (The) 117,754 2,644 2,474 ProLogis, Inc. REIT 97,504 3,944 3,543 Prudential Financial, Inc. 98,153 5,854 5,211 Public Storage, Inc. REIT 30,503 3,259 4,403 Regions Financial Corp. 298,200 3,699 2,114 Simon Property Group, Inc. REIT 65,447 6,907 10,302 SLM Corp. 97,833 2,548 1,670 State Street Corp. 98,360 5,130 4,604 SunTrust Banks, Inc. 113,986 4,609 3,216 T Rowe Price Group, Inc. 53,916 2,744 3,496 Torchmark Corp. 20, ,035 Travelers Cos. (The), Inc. 80,716 4,476 5,772 U.S. Bancorp 397,859 12,565 12,653 Unum Group 58,251 1,227 1,207 Ventas, Inc. REIT 62,525 3,065 4,028 Visa, Inc.-Class A 110,305 11,389 16,636 Vornado Realty Trust-REIT 35,833 3,055 2,857 Wells Fargo & Co. 1,035,828 42,067 35,283 XL Group PLC 63,636 1,990 1,587 Zions Bancorporation 38,837 1, , ,433 Health Care 11.0% Abbott Laboratories 334,417 19,539 21,813 Accenture PLC-Class A 135,087 8,139 8,945 Aetna, Inc. 70,781 2,731 3,264 Alexion Pharmaceuticals 41,101 4,000 3,836 Allergan, Inc. 65,061 4,408 5,940 AmerisourceBergen Corp. 49,841 1,399 2,143 Amgen, Inc. 162,361 11,625 13,960 Baxter International, Inc. 116,226 6,367 7,714 Becton Dickinson & Co. 41,683 3,169 3,246 Biogen Idec, Inc. 50,055 4,216 7,307 Boston Scientific Corp. 290,639 4,102 1,655 Bristol-Myers Squibb Co. 349,265 10,496 11,341 Cardinal Health, Inc. 71,972 3,221 2,951 CareFusion Corp. 46,815 1,427 1,332 Celgene Corp. 89,504 5,699 7,009 Cerner Corp. 30,848 1,670 2,384 Cigna Corp. 60,503 2,373 3,219 Coventry Health Care, Inc. 28,460 1,191 1,270 Covidien PLC 100,171 5,175 5,758 The accompanying notes are an integral part of the financial statements. 45

46 BlackRock CDN US Equity Index Fund Par (000s)/ Health Care (continued) CR Bard, Inc. 16,205 1,432 1,577 DaVita, Inc. 17,731 1,263 1,951 DENTSPLY International, Inc. 29,909 1,094 1,179 Edwards Lifesciences Corp. 24,415 2,122 2,191 Eli Lilly & Co. 216,047 11,397 10,610 Express Scripts Holding Co. 172,719 9,781 9,283 Forest Laboratories, Inc. 49,611 2,249 1,745 Gilead Sciences, Inc. 160,291 7,107 11,729 Hospira, Inc. 34,829 1,413 1,083 Humana, Inc. 33,489 1,861 2,288 Intuitive Surgical, Inc. 8,406 2,961 4,102 Johnson & Johnson 586,312 40,718 40,924 Laboratory Corp. of America 20,025 1,501 1,726 Life Technologies Corp. 36,420 1,396 1,781 McKesson Corp. 49,935 3,274 4,821 Medtronic, Inc. 213,996 10,414 8,740 Mylan, Inc. 86,205 1,807 2,358 Patterson Cos., Inc. 17, PerkinElmer, Inc. 24, Perrigo Co. 18,667 1,949 1,933 Pfizer, Inc. 1,557,741 40,260 38,916 Quest Diagnostics, Inc. 33,662 1,926 1,952 St. Jude Medical, Inc. 65,227 2,769 2,348 Stryker Corp. 61,189 3,363 3,339 Tenet Healthcare Corp. 22, Thermo Fisher Scientific, Inc. 76,225 3,747 4,842 UnitedHealth Group, Inc. 216,135 10,148 11,673 Varian Medical Systems, Inc. 23,160 1,291 1,619 Waters Corp. 18,386 1,188 1,595 Watson Pharmaceuticals, Inc. 27,044 1,471 2,316 WellPoint, Inc. 64,239 4,137 3,897 Zimmer, Inc. 36,715 2,638 2, , ,140 Industrials 10.0% 3M Co. 134,677 12,046 12,451 ACE Aviation, Inc. 71,889 4,520 5,711 ADT Corp. 49,174 1,767 2,277 Avery Dennison Corp. 21,097 1, Boeing Co. 143,581 10,155 10,778 C.H. Robinson Worldwide, Inc. 34,070 2,026 2,145 Caterpillar, Inc. 138,349 9,938 12,346 Cintas Corp. 22, CSX Corp. 218,255 3,500 4,285 Cummins, Inc. 37,367 2,225 4,031 Danaher Corp. 123,085 5,254 6,853 Deere & Co. 82,861 5,040 7,130 Dover Corp. 37,888 1,922 2,481 Par (000s)/ Industrials (continued) Dun & Bradstreet Corp. 9, Eaton Corp. PLC 97,689 4,999 5,272 Emerson Electric Co. 153,224 7,058 8,083 Equifax, Inc. 25, ,363 Expeditors International of Washington, Inc. 44,169 1,913 1,739 Fastenal Co. 57,087 1,808 2,653 FedEx Corp. 61,796 5,732 5,645 Flowserve Corp. 10,582 1,067 1,546 Fluor Corp. 35,228 1,705 2,062 General Dynamics Corp. 70,212 4,857 4,843 General Electric Co. 2,218,637 61,395 46,347 Honeywell International, Inc. 165,732 8,287 10,475 Illinois Tool Works, Inc. 90,223 4,652 5,464 Ingersoll-Rand PLC 59,244 2,523 2,829 Iron Mountain, Inc. 35,347 1,050 1,092 Jacobs Engineering Group, Inc. 27,598 1,560 1,170 Joy Global, Inc. 22,336 1,823 1,418 L-3 Communications, Inc. 19,912 1,696 1,518 Lockheed Martin Corp. 56,821 4,776 5,223 Masco Corp. 75,331 1,625 1,250 Norfolk Southern Corp. 66,880 3,731 4,117 Northrop Grumman Corp. 51,942 3,406 3,495 Paccar, Inc. 74,594 3,014 3,356 Pall Corp. 23,519 1,010 1,411 Parker Hannifin Corp. 31,533 2,059 2,671 Pentair, Ltd. 44,483 1,942 2,177 Pitney Bowes, Inc. 42,840 1, Precision Castparts Corp. 30,790 4,106 5,805 Quanta Services, Inc. 44,959 1,096 1,221 Raytheon Co. 69,806 3,654 4,001 Republic Services, Inc. 63,195 1,799 1,846 Robert Half International, Inc. 29, Rockwell Automation, Inc. 29,485 1,766 2,466 Rockwell Collins, Inc. 29,681 1,601 1,719 Roper Industries, Inc. 20,813 1,526 2,309 Ryder System, Inc. 10, Snap-On, Inc. 12, Southwest Airlines Co. 155,820 2,034 1,589 Stanley Black & Decker, Inc. 35,705 2,172 2,630 Stericycle, Inc. 18,179 1,420 1,688 Textron, Inc. 59,674 1,807 1,472 Union Pacific Corp. 99,530 7,632 12,459 United Parcel Service, Inc.-Class B 151,393 11,412 11,116 United Technologies Corp. 178,396 12,470 14,567 W.W. Grainger, Inc. 12,646 1,567 2,548 Waste Management, Inc. 92,246 3,285 3,098 Xylem, Inc. 39,149 1,019 1, , ,593 The accompanying notes are an integral part of the financial statements. 46

47 BlackRock CDN US Equity Index Fund Par (000s)/ Information Technology 17.7% Adobe Systems, Inc. 104,728 3,532 3,928 Advanced Micro Devices, Inc. 129,319 1, Agilent Technologies, Inc. 73,766 2,670 3,008 Akamai Technologies, Inc. 37,645 1,451 1,533 Altera Corp. 67,811 1,961 2,326 Amphenol Corp.-Class A 33,967 1,581 2,188 Analog Devices, Inc. 63,749 2,527 2,669 Apple, Inc. 199,023 56, ,627 Applied Materials, Inc. 253,469 4,177 2,885 Automatic Data Processing, Inc. 102,705 5,128 5,829 BMC Software, Inc. 30,180 1,004 1,192 Broadcom Corp.-Class A 109,767 3,588 3,629 CA, Inc. 70,975 1,850 1,553 Cisco Systems, Inc. 1,123,260 25,319 21,977 Citrix Systems, Inc. 39,450 1,914 2,582 Cognizant Technology Solutions Corp.-Class A 63,506 3,199 4,681 Computer Sciences Corp. 32,768 1,454 1,307 Corning, Inc. 312,739 5,302 3,927 Dell, Inc. 308,706 7,110 3,114 ebay, Inc. 246,385 9,083 12,519 EMC Corp., Massachusetts 445,690 8,906 11,232 F5 Networks, Inc. 16,673 2,046 1,612 Fidelity National Information Services, Inc. 52,835 1,474 1,832 First Solar, Inc. 12,672 1, Fiserv, Inc. 28,251 1,582 2,223 Flir Systems, Inc. 31, Google, Inc.-Class A 56,312 31,415 39,768 Harris Corp. 24,089 1,127 1,174 Hewlett-Packard Co. 415,952 13,697 5,898 Intel Corp. 1,052,819 26,447 21,626 International Business Machines Corp. 224,722 31,615 42,865 Intuit, Inc. 58,872 2,405 3,487 Jabil Circuit, Inc. 39, JDS Uniphase Corp. 49, Juniper Networks, Inc. 109,125 2,456 2,138 KLA-Tencor Corp. 35,131 1,673 1,671 Lam Research Corp. 36,276 1,231 1,305 Linear Technology Corp. 48,943 1,728 1,671 LSI Corp. 117, MasterCard, Inc.-Class A 22,612 7,201 11,069 Microchip Technology, Inc. 41,168 1,428 1,336 Micron Technology, Inc. 214,665 2,001 1,353 Microsoft Corp. 1,602,594 47,633 42,637 Molex, Inc. 29, Motorola Solutions, Inc. 59,363 3,356 3,291 NetApp, Inc. 75,829 2,495 2,533 NVIDIA Corp. 132,167 1,954 1,617 Par (000s)/ Information Technology (continued) Oracle Corp. 795,292 18,829 26,385 Paychex, Inc. 68,430 2,441 2,121 QUALCOMM, Inc. 360,516 17,989 22,263 Red Hat, Inc. 40,918 1,455 2,157 SAIC, Inc. 59,831 1, Salesforce.Com, Inc. 27,638 2,719 4,624 SanDisk Corp. 51,192 2,288 2,219 Seagate Technology PLC 71,111 1,852 2,158 Symantec Corp. 146,858 3,038 2,752 TE Connectivity, Ltd. 89,428 3,059 3,305 Teradata Corp. 35,770 1,466 2,203 Teradyne, Inc. 39, Texas Instruments, Inc. 237,158 7,259 7,309 Total System Services, Inc. 34, VeriSign, Inc. 32,991 1,058 1,275 Western Digital Corp. 46,407 1,565 1,963 Western Union Co. 126,285 2,444 1,711 Xerox Corp. 267,478 2,878 1,816 Xilinx, Inc. 55,315 1,814 1,977 Yahoo!, Inc. 219,980 4,740 4, , ,917 Materials 3.7% Air Products & Chemicals, Inc. 45,028 3,519 3,767 Airgas, Inc. 14, ,351 Alcoa, Inc. 226,250 4,415 1,953 Allegheny Technologies, Inc. 22,649 1, Ball Corp. 32, ,454 Bemis Co. 21, CF Industries, Inc. 13,300 1,884 2,690 Cliffs Natural Resources, Inc. 30,056 1,537 1,154 Dow Chemical Co. (The) 253,709 8,925 8,167 Eastman Chemical Co. 32,442 1,270 2,199 Ecolab, Inc. 55,768 2,983 3,992 EI Du Pont de Nemours & Co. 197,275 9,483 8,835 FMC Corp. 29,142 1,055 1,698 Freeport-McMoran Copper & Gold, Inc. 200,835 7,170 6,839 International Flavors & Fragrances, Inc. 17, ,139 International Paper Co. 92,900 3,200 3,685 LyondellBasell Industries-Class A 80,309 3,826 4,567 MeadWestvaco Corp. 36,969 1,104 1,173 Monsanto Co. 113,101 7,871 10,659 Mosaic Co. 58,536 3,390 3,301 Newmont Mining Corp. 105,022 5,275 4,856 Nucor Corp. 67,213 2,837 2,888 Owens-Illinois, Inc. 34, PPG Industries, Inc. 32,442 2,688 4,372 The accompanying notes are an integral part of the financial statements. 47

48 BlackRock CDN US Equity Index Fund Par (000s)/ Materials (continued) Praxair, Inc. 62,831 5,126 6,844 Sealed Air Corp. 40, Sigma-Aldrich Corp. 25,479 1,379 1,866 Tyco International, Ltd. 98,517 4,051 2,867 United States Steel Corp. 30,425 1, Vulcan Materials Co. 27,485 1,574 1,424 Weyerhaeuser Co. 114,557 3,523 3,174 95, ,499 Telecommunication Services 3.0% AT&T, Inc. 1,201,748 39,115 40,349 CenturyTel, Inc. 132,066 4,990 5,144 Crown Castle International Corp. 62,018 3,541 4,455 Frontier Communications Corp. 210,620 1, MetroPCS Communications, Inc. 66, Sprint Nextel Corp. 635,610 7,320 3,582 Verizon Communications, Inc. 603,797 23,669 26,008 Windstream Corp. 124,031 1,452 1,025 82,808 82,123 Utilities 3.4% AES Corp. (The) 130,975 1,856 1,395 AGL Resources, Inc. 24,788 1, Ameren Corp. 51,189 2,085 1,566 American Electric Power Co., Inc. 102,655 4,147 4,361 Centerpoint Energy, Inc. 90,171 1,527 1,727 CMS Energy Corp. 55,902 1,027 1,357 Consolidated Edison, Inc. 61,982 3,341 3,426 Dominion Resources, Inc. 121,563 5,641 6,270 DTE Energy Co. 36,403 1,887 2,176 Duke Energy Corp. 148,991 8,757 9,463 Edison International 68,967 2,925 3,103 Entergy Corp. 37,597 3,081 2,386 EQT Corp. 31,562 1,421 1,853 Exelon Corp. 180,727 9,088 5,350 FirstEnergy Corp. 88,491 4,526 3,678 FPL Group, Inc. 89,532 5,208 6,166 Integrys Energy Group, Inc. 16, NiSource, Inc. 65,350 1,486 1,619 Northeast Utilities 66,467 2,221 2,586 ONEOK, Inc. 43,264 1,318 1,841 Pepco, Inc. 48,278 1, PG&E Corp. 90,962 3,959 3,639 Pinnacle West Capital Corp. 23,108 1,074 1,173 PPL Corp. 123,057 3,811 3,507 Public Service Enterprise Group, Inc. 107,083 3,686 3,262 Scana Corp. 27,914 1,234 1,269 Sempra Energy 47,581 2,683 3,359 Southern Co. (The) 184,926 7,598 7,881 Par (000s)/ Utilities (continued) TECO Energy, Inc. 42, Wisconsin Energy Corp. 48,620 1,470 1,783 Xcel Energy, Inc. 103,241 2,491 2,744 93,260 92,440 Total Common Stocks 2,527,857 2,684,092 Transaction Costs (Note 2) (180) Total Investments 2,532,473 2,688,930 Other Assets and Liabilities 1.9% 51,301 Net Assets 2,740,231 Portfolio Concentration (as a percentage of Net Assets) As at December 31, 2012 As at December 31, 2011 Portfolio by Category (%) (%) Government Guaranteed Consumer Discretionary Consumer Staples Energy Financials Health Care Industrials Information Technology Materials Telecommunication Services Utilities Other Assets and Liabilities Open futures contracts held by the Fund as at December 31, 2012 are shown in Note 4. The accompanying notes are an integral part of the financial statements. 48

49 BlackRock CDN US Alpha Tilts Non-Taxable Fund Statement of Net Assets As at December Assets Investments - at fair (Note 2) $ 434,000,229 $ 451,676,934 Cash 2,354,811 2,470,168 Margin due from brokers 376,458 - Dividends receivable 353, ,576 Tax reclaim on dividends receivable 65,135 70,926 Accounts receivable from issue of units - 39,289 Accounts receivable for investment sales 13,544,630 17,746, ,694, ,371,330 Liabilities Margin due to brokers - 11,417 Operating expenses payable 31,449 29,843 Payables for redemption of units 1,601,165 17,901,301 Payables for investment purchases 12,412,713-14,045,327 17,942,561 Net Assets $ 436,649,003 $ 454,428,769 Number of Units Issued and Outstanding (Note 8) 44,597,407 54,123,344 Net Assets per Unit $ 9.79 $ 8.40 Investments at Cost $ 410,350,427 $ 427,047,174 Approved by BlackRock Asset Management Canada Limited, Manager of the Funds Eric Léveillé, Director Noel Archard, Director The accompanying notes are an integral part of the financial statements. 49

50 BlackRock CDN US Alpha Tilts Non-Taxable Fund Statement of Operations For the Years Ended December Revenue Dividend income $ 13,510,003 $ 10,621,116 Interest income 701 2,253 Net gain from futures contracts 317, ,382 Foreign exchange loss (7,301) (27,561) Withholding taxes (26,255) (26,186) 13,795,053 10,711,004 Expenses Custodian fees 141, ,475 Fund accounting expenses 40,780 40,716 Unitholder communication s Audit fees 15,049 15,910 Securities filing fees 7,969 7,663 Independent review committee fees Other operating expenses 4,874 1, , ,387 Net Investment Income for the Year 13,585,055 10,519,617 Gain on Investments Net realized gain on sale of investments 60,567,460 26,043,448 Transaction s (Note 2,13) (479,117) (555,681) Net change in unrealized appreciation (depreciation) in of investments (980,675) 430,615 Net Gain on Investments 59,107,668 25,918,382 Increase in Net Assets from Operations $ 72,692,723 $ 36,437,999 Increase in Net Assets from Operations per Unit $ 1.39 $ 0.56 Statement of Changes In Net Assets For the Years Ended December Net Assets - Beginning of Year $ 454,428,769 $ 659,929,936 Increase in Net Assets from Operations 72,692,723 36,437,999 Capital Transactions Proceeds from issue of units 16,762,973 11,602,166 Reinvestment of distributions 19,465,987 10,960,012 Redemption of units (107,235,462) (253,541,332) Net capital transactions (71,006,502) (230,979,154) Distributions From net investment income (13,603,458) (10,960,012) From capital gains redemption in kind (Note 9) (5,862,529) - Total distributions (19,465,987) (10,960,012) Decrease in Net Assets for the Year (17,779,766) (205,501,167) Net Assets - End of Year $ 436,649,003 $ 454,428,769 The accompanying notes are an integral part of the financial statements. 50

51 BlackRock CDN US Alpha Tilts Non-Taxable Fund Common Stocks Consumer Discretionary 11.6% American Eagle Outfitters, Inc. 10, Apollo Group, Inc.-Class A 27, Beam, Inc. 30,429 1,684 1,851 Brinker International, Inc. 1, Choice Hotels International, Inc. 3, Coach, Inc. 53,153 3,041 2,938 DIRECTV 90,620 4,487 4,527 Dish Network Corp.-Class A 121,229 4,293 4,394 Dollar Tree, Inc. 85,888 3,557 3,469 Fortune Brands Home &, Inc. 12, Gap (The), Inc. 73,037 2,308 2,256 ITT Educational Services, Inc. 6, John Wiley & Sons, Inc.-Class A 20, Kohl s Corp. 23,439 1,003 1,003 Liberty Ventures 20,299 1,001 1,370 Marriott Vacations Worldwide Corp. 3, McDonald s Corp. 10, Michael Kors, Ltd. 17, Nike, Inc.-Class B 43,426 2,098 2,231 NVR, Inc. 1, ,237 Panera Bread Company Priceline.Com, Inc. 6,922 3,976 4,281 Ross Stores, Inc. 88,117 5,554 4,751 Sears Hometown And Outlet Stores, Inc. 5, Service Corp. International/US 88,744 1,235 1,218 Tempur-Pedic International, Inc. 18, Thor Industries, Inc. 1, TJX Cos., Inc. 121,287 5,363 5,126 Tripadvisor, Inc. 22, Viacom, Inc.-Class B 65,754 3,301 3,454 Yum! Brands, Inc. 8, ,854 50,652 Consumer Staples 10.9% Church & Dwight Co., Inc. 18, Clorox Co. 3, Coca-Cola Co. (The) 13, Colgate-Palmolive Co. 6, Costco Wholesale Corp. 46,000 4,528 4,526 CVS Caremark Corp. 133,381 6,075 6,424 Energizer, Inc. 1, Estee Lauder Cos. (The), Inc.- Class A 20,033 1,163 1,194 Herbalife, Ltd. 4, Hershey Co. (The) 1, Ingredion, Inc. 10, Kraft Foods Group, Inc. 118,426 5,416 5,359 Consumer Staples (continued) Lancaster Colony Corp. 4, Lorillard, Inc. 38,564 4,531 4,479 Mead Johnson Nutrition Co.-Class A 59,642 4,116 3,913 Mondelez International, Inc. 22, Monster Beverage Corp. 60,316 3,127 3,176 Nu Skin Ent., Inc. 6, Philip Morris International, Inc. 109,476 7,605 9,118 Post, Inc. 4, Procter & Gamble Co. (The) 31,350 2,078 2,120 Wal-Mart Stores, Inc. 35,363 2,504 2,404 45,786 47,438 Energy 11.6% Apache Corp. 68,981 6,040 5,390 Chevron Corp. 91,677 9,603 9,879 ConocoPhillips 68,203 3,693 3,939 Exxon Mobil Corp. 206,213 17,013 17,781 Kinder Morgan, Inc. 144,377 4,946 5,079 Marathon Oil Corp. 5, Marathon Petroleum Corp. 8, National Oilwell Varco, Inc. 79,514 5,310 5,413 Schlumberger, Ltd. 36,169 2,545 2,495 49,756 50,680 Financials 16.4% Alexander & Baldwin, Inc. 14, Allied World Assurance Co., Ltd. 20,630 1,635 1,618 American International Group, Inc. 89,407 2,868 3,143 American Tower Corp. REIT 69,970 5,029 5,381 Aspen Insurance, Ltd. 10, Assurant, Inc. 5, Assured Guaranty, Ltd. 19, Bank of America Corp. 212,838 2,104 2,460 BB&T Corp. 70,703 2,091 2,049 Berkshire Hathaway, Inc.-Class B 13,739 1,126 1,228 BlackRock, Inc. 2, BOK Financial Corp Broadridge Financial Solutions, Inc. 51,156 1,161 1,165 Brown & Brown, Inc. 18, Capital One Financial Corp. 68,181 3,445 3,933 CIT Group, Inc. 18, Citigroup, Inc. 102,615 3,629 4,044 CME Group, Inc. 4, CNA Financial Corp. 39,527 1,103 1,102 CommonWealth REIT 54, Cullen/Frost Bankers, Inc. 2, Endurance Specialty, Ltd. 40,743 1,519 1,609 Equity Residential REIT Everest Re Group Ltd. 3, The accompanying notes are an integral part of the financial statements. 51

52 BlackRock CDN US Alpha Tilts Non-Taxable Fund Financials (continued) First Citizens BancShares, Inc.- Class A 1, First Republic Bank 89,782 2,703 2,931 Goldman Sachs Group, Inc. 19,916 2,410 2,531 JPMorgan Chase & Co. 229,109 9,176 10,035 Legg Mason, Inc. 28, Lender Processing Services, Inc. 53,555 1,399 1,312 LPL Financial, Inc. 2, Merck & Co., Inc. 81,726 3,395 3,332 Metlife, Inc. 22, NYSE Euronext 8, People s United Financial, Inc. 57, PNC Financial Services Group, Inc. 29,229 1,749 1,697 Prudential Financial, Inc. 28,980 1,470 1,539 Realogy Corp 3, Reinsurance Group of America, Inc. 13, SunTrust Banks, Inc. 23, Taubman Centers, Inc. REIT 9, Towers Watson & Co.-Class A 5, Travelers Cos. (The), Inc. 23,215 1,478 1,660 U.S. Bancorp 30, Unum Group 4, Validus, Ltd. 5, Ventas, Inc. REIT 9, Visa, Inc.-Class A 26,887 3,300 4,055 Washington Federal, Inc. 4, Wells Fargo & Co. 54,389 1,735 1,853 White Mountains Insurance Group, Ltd XL Group PLC 46, ,171 66,970 71,766 Health Care 11.4% Abbott Laboratories 60,277 3,467 3,932 Alere, Inc. 5, Allergan, Inc. 52,607 4,687 4,803 Allscripts Healthcare Solutions, Inc. 22, Amgen, Inc. 76,337 6,320 6,563 Bristol-Myers Squibb Co. 192,983 6,323 6,266 Cardinal Health, Inc. 15, Celgene Corp. 19,237 1,399 1,506 Charles River Laboratories International, Inc. 3, CR Bard, Inc. 1, Eli Lilly & Co. 1, Express Scripts Holding Co. 109,262 5,900 5,873 Forest Laboratories, Inc. 30,000 1,001 1,055 HCA, Inc. 37,029 1,090 1,113 Hill-Rom, Inc. 1, Humana, Inc. 37,674 2,720 2,574 Health Care (continued) Intuitive Surgical, Inc. 1, Johnson & Johnson 33,134 2,239 2,313 McKesson Corp. 5, Myriad Genetics, Inc. 80,980 1,930 2,197 Omnicare, Inc. 17, Pfizer, Inc. 79,867 1,741 1,995 Salix Pharmaceuticals, Ltd. 6, St. Jude Medical, Inc. 29, ,056 Stryker Corp. 7, Thermo Fisher Scientific, Inc. 12, Thoratec Corp. 16, UnitedHealth Group, Inc. 25,451 1,359 1,375 Vertex Pharmaceuticals, Inc. 10, Warner Chilcott PLC 18, WellPoint, Inc. 17, ,063 48,137 49,727 Industrials 9.7% ACE Aviation, Inc. 65,743 4,296 5,223 ADT Corp. 78,614 2,937 3,641 C.H. Robinson Worldwide, Inc. 13, Cabot Corp. 24, Copa SA-Class A 5, Crane Co. 8, CSX Corp. 48, Exelis, Inc. 188,915 1,930 2,118 Expeditors International of Washington, Inc. 51,058 2,090 2,010 Flowserve Corp. 5, Gardner Denver, Inc. 9, General Electric Co. 232,203 4,681 4,851 GrafTech International, Ltd Huntington Ingalls Industries, Inc. 12, L-3 Communications, Inc. 17,283 1,176 1,318 Lear Corp. 30,720 1,329 1,433 MRC Global, Inc. 13, Nordson Corp. 2, Norfolk Southern Corp. 45,235 2,779 2,784 Northrop Grumman Corp. 40,132 2,658 2,700 RR Donnelley & Sons Co. 33, Spirit Aerosystems, Inc.- Class A 30, SPX Corp. 29,874 1,839 2,087 Timken Co. (The) 19, Toro Co. 4, UTI Worldwide, Inc. 24, Wabtec Corp. 18,795 1,565 1,637 Xylem, Inc. 146,014 3,864 3,937 39,405 42,410 The accompanying notes are an integral part of the financial statements. 52

53 BlackRock CDN US Alpha Tilts Non-Taxable Fund Information Technology 18.8% Agilent Technologies, Inc. 27,433 1,010 1,119 Altera Corp. 3, Amdocs, Ltd. 85,153 2,640 2,880 Apple, Inc. 40,605 14,490 21,550 Avago Technologies, Ltd. 69,466 2,304 2,190 Broadcom Corp.-Class A 32,362 1,043 1,070 Cisco Systems, Inc. 40, Citrix Systems, Inc. 38,746 2,491 2,536 CoreLogic, Inc. 62,117 1,425 1,665 Fidelity National Information Services, Inc. 15, First Solar, Inc. 11, Flir Systems, Inc. 19, Google, Inc.-Class A 13,645 7,996 9,636 IAC/InterActiveCorp. 7, Ingram Micro, Inc.-Class A 21, Intel Corp. 41, International Business Machines Corp. 13,724 2,260 2,618 Intuit, Inc. 14, KLA-Tencor Corp. 42,359 1,973 2,014 LSI Corp. 9, Marvell Technology Group, Ltd. 15, MasterCard, Inc.-Class A 12,535 4,636 6,136 Microsoft Corp. 420,587 11,519 11,190 NVIDIA Corp. 12, Plantronics, Inc. 2, QLogic Corp. 4, QUALCOMM, Inc. 91,738 5,398 5,665 Skyworks Solutions, Inc. 41, SolarWinds, Inc. 23,445 1,312 1,225 Synopsys, Inc. 1, Tech Data Corp. 1, TIBCO Software, Inc. 12, Total System Services, Inc. 27, VeriSign, Inc. 102,121 4,309 3,947 71,505 82,327 Materials 2.5% CF Industries, Inc. 10,798 2,077 2,183 Domtar Corp. 15,540 1,185 1,292 Greif, Inc.-Class A 5, Hubbell, Inc.-Class B 29,645 2,362 2,499 LyondellBasell Industries-Class A 51,569 2,409 2,932 Minerals Technologies, Inc. 2, NewMarket Corp Newmont Mining Corp. 4, Osisko Mining Corp. 21, Royal Gold, Inc. 1, Valspar Corp. 3, Westlake Chemical Corp. 3, ,848 10,730 Telecommunication Services 4.1% AT&T, Inc. 302,803 10,376 10,167 Echostar Corp.-Class A 3, MetroPCS Communications, Inc. 97,194 1, Telephone & Data Systems, Inc. 78,654 1,768 1,733 U.S. Cellular Corp. 11, Verizon Communications, Inc. 100,265 4,088 4,319 17,806 17,710 Utilities 2.4% AES Corp. (The) 164,840 1,817 1,756 Ameren Corp. 40,085 1,175 1,227 American Water Works Co., Inc. 116,607 3,991 4,309 Consolidated Edison, Inc. 21,843 1,208 1,207 ONEOK, Inc. 4, PG&E Corp. 46,766 2,046 1,871 10,393 10,560 Total Common Stocks 410, ,000 Transaction Costs (Note 2) (110) Total Investments 410, ,000 Other Assets and Liabilities 0.6% 2,649 Net Assets 436,649 Portfolio Concentration (as a percentage of Net Assets) As at December 31, 2012 As at December 31, 2011 Portfolio by Category (%) (%) Government Guaranteed Consumer Discretionary Consumer Staples Energy Financials Health Care Industrials Information Technology Materials Telecommunication Services Utilities Other Assets and Liabilities Open futures contracts held by the Fund as at December 31, 2012 are shown in Note 4. The accompanying notes are an integral part of the financial statements. 53

54 BlackRock CDN US Alpha Tilts Hedged Non-Taxable Fund Statement of Net Assets As at December Assets Investments - at fair (Note 2) $ 28,516,146 $ 23,856,883 Cash 13,856 14,828 Net unrealized gain on forward currency contracts (Note 5) 25,349 1,069,984 Accounts receivable for investment sales 5,148 8,404,769 28,560,499 33,346,464 Liabilities Operating expenses payable 14,927 16,055 Payables for redemption of units - 9,139,074 Payables for investment purchases - 39,289 Net unrealized loss on forward currency contracts (Note 5) 54, ,266 69,885 9,336,684 Net Assets $ 28,490,614 $ 24,009,780 Number of Units Issued and Outstanding (Note 8) 2,339,243 2,349,029 Net Assets per Unit $ $ Investments at Cost $ 27,318,655 $ 25,811,031 Approved by BlackRock Asset Management Canada Limited, Manager of the Funds Eric Léveillé, Director Noel Archard, Director The accompanying notes are an integral part of the financial statements. 54

55 BlackRock CDN US Alpha Tilts Hedged Non-Taxable Fund Statement of Operations For the Years Ended December Revenue Dividend income $ 816,040 $ 788, , ,639 Expenses Custodian fees Fund accounting expenses 6,156 13,303 Unitholder communication s Audit fees 13,720 14,295 Securities filing fees Independent review committee fees Other operating expenses 631 1,704 21,188 30,653 Net Investment Income for the Year 794, ,986 Gain on Investments Net realized gain (loss) on sale of investments 36,121 (2,070,716) Net realized gain (loss) from forward currency contracts 1,560,820 (849,587) Net change in unrealized appreciation in of investments 3,151,639 3,429,051 Net change in unrealized appreciation (depreciation) in of forward currency contracts (957,327) 57,680 Net Gain on Investments 3,791, ,428 Increase in Net Assets from Operations $ 4,586,105 $ 1,324,414 Increase in Net Assets from Operations per Unit $ 1.96 $ 0.39 Statement of Changes in Net Assets For the Years Ended December Net Assets - Beginning of Year $ 24,009,780 $ 36,775,704 Increase in Net Assets from Operations 4,586,105 1,324,414 Capital Transactions Proceeds from issue of units - 1,099,019 Reinvestment of distributions 794, ,904 Redemption of units (105,271) (15,189,357) Net capital transactions 689,582 (13,332,434) Distributions From net investment income (794,853) (757,904) Total distributions (794,853) (757,904) Increase (Decrease) in Net Assets for the Year 4,480,834 (12,765,924) Net Assets - End of Year $ 28,490,614 $ 24,009,780 The accompanying notes are an integral part of the financial statements. 55

56 BlackRock CDN US Alpha Tilts Hedged Non-Taxable Fund Foreign Index Equivalents 100.1% BlackRock CDN US Alpha Tilts Non- Taxable Fund 2,912,616 27,319 28,516 Total Foreign Index Equivalents 27,319 28,516 Total Investments 27,319 28,516 Other Assets and Liabilities (0.1)% (25) Net Assets 28,491 Portfolio Concentration (as a percentage of Net Assets) As at December 31, 2012 As at December 31, 2011 Portfolio by Category (%) (%) Foreign Index Equivalents Other Assets and Liabilities (0.1) 0.6 Open forward currency contracts held by the Fund as at December 31, 2012 as shown in Note 5. The accompanying notes are an integral part of the financial statements. 56

57 BlackRock CDN Russell 3000 Index Non-Taxable Fund Statement of Net Assets As at December Assets Investments - at fair * (Note 2) $ 394,366,576 $ 374,943,193 Cash 4,715,915 7,304,091 Margin due from brokers 163,006 - Securities lending income receivable 1,555 - Dividends receivable 448, ,002 Tax reclaim on dividends receivable 26,355 13,383 Accounts receivable from issue of units - 7,047,355 Accounts receivable for investment sales 31,617 46, ,753, ,950,527 Liabilities Margin due to brokers - 36,038 Operating expenses payable 25,136 21,185 Payables for investment purchases - 12,343,152 25,136 12,400,375 Net Assets $ 399,728,444 $ 377,550,152 Number of Units Issued and Outstanding (Note 8) 33,314,102 35,822,734 Net Assets per Unit $ $ Investments at Cost* $ 353,733,365 $ 366,306,929 * Includes short-term investments Approved by BlackRock Asset Management Canada Limited, Manager of the Funds Eric Léveillé, Director Noel Archard, Director The accompanying notes are an integral part of the financial statements. 57

58 BlackRock CDN Russell 3000 Index Non-Taxable Fund Statement of Operations For the Years Ended December Revenue Dividend income $ 9,355,043 $ 11,822,589 Interest income* 12,270 (28,139) Securities lending income 1,613 Net gain (loss) from futures contracts 847,010 (693,018) Foreign exchange gain (loss) (97,348) 491,515 Withholding taxes (6,107) (9,458) 10,112,481 11,583,489 Expenses Custodian fees 111, ,158 Fund accounting expenses 39,149 42,381 Unitholder communication s Audit fees 13,543 14,148 Securities filing fees 6,544 8,281 Independent review committee fees Other operating expenses 15,359 15, , ,814 Net Investment Income for the Year 9,926,394 11,395,675 Gain on Investments Net realized gain on sale of investments 7,898,584 5,513,790 Transaction s (Note 2,13) (16,016) (53,961) Net change in unrealized appreciation (depreciation) in of investments 31,986,530 (193,586) Net Gain on Investments 39,869,098 5,266,243 Increase in Net Assets from Operations $ 49,795,492 $ 16,661,918 Increase in Net Assets from Operations per Unit $ 1.44 $ 0.31 * Interest Income, net of foreign exchange loss Statement of Changes in Net Assets For the Years Ended December Net Assets - Beginning of Year $ 377,550,152 $ 603,359,248 Increase in Net Assets from Operations 49,795,492 16,661,918 Capital Transactions Proceeds from issue of units 440,637, ,355,199 Reinvestment of distributions 20,596,120 17,675,842 Redemption of units (468,254,383) (428,826,213) Net capital transactions (7,021,080) (224,795,172) Distributions From net investment income (9,949,087) (11,429,010) From capital gains (10,647,033) (6,246,832) Total distributions (20,596,120) (17,675,842) Increase (Decrease) in Net Assets for the Year 22,178,292 (225,809,096) Net Assets - End of Year $ 399,728,444 $ 377,550,152 The accompanying notes are an integral part of the financial statements. 58

59 BlackRock CDN Russell 3000 Index Non-Taxable Fund Par (000s)/ Short Term Investments Government Guaranteed 0.2% U.S. Treasury Bill 1.00% March 21, Total Short Term Investments Common Stocks Consumer Discretionary 12.4% Aaron s, Inc. 1, Abercrombie & Fitch Co.-Class A 2, Advance Auto Parts, Inc. 1, Aeropostale, Inc. 2, AFC Ent., Inc Allison Transmission, Inc Amazon.com, Inc. 9,091 1,726 2,274 AMC Networks, Inc. 1, America s Car-Mart, Inc American Axle & Manufacturing, Inc. 1, American Eagle Outfitters, Inc. 4, American Greetings Corp.-Class A American Public Education, Inc Ameristar Casinos, Inc ANN, Inc. 1, Apollo Group, Inc.-Class A 2, Arbitron, Inc ARC Document Solutions, Inc. 1, Arctic Cat, Inc Asbury Automotive Group, Inc Ascena Retail Group, Inc. 3, Ascent Media Corp AutoNation, Inc AutoZone, Inc Bally Technologies, Inc. 1, Barnes & Noble, Inc Beam, Inc. 4, Beazer Homes USA, Inc Bebe Stores, Inc Bed Bath & Beyond, Inc. 5, Belo Corp. 2, Best Buy Co., Inc. 6, Big 5 Sporting Goods Corp Big Lots, Inc. 1, Biglari, Inc BJ s Restaurants, Inc Black Diamond, Inc Bloomin Brands, Inc Blue Nile, Inc Blyth, Inc Par (000s)/ Consumer Discretionary (continued) Bob Evans Farms, Inc Body Central Corp Bon-Ton Stores, Inc BorgWarner, Inc. 2, Boulder Brands, Inc. 1, Boyd Gaming Corp. 1, Bravo Brio Restaurant Group, Inc Bridgepoint Education, Inc Brink s Co. (The) 1, Brinker International, Inc. 1, Brookdale Senior Living, Inc. 2, Brown Shoe Co., Inc. 1, Brunswick Corp. 2, Buckle, Inc Buffalo Wild Wings, Inc Cabela s, Inc. 1, Cablevision Systems-NY Group A 5, Caesars Entertainment Corp Callaway Golf Co. 1, Capella Education Co Career Education Corp Caribou Coffee Co., Inc CarMax, Inc. 5, Carmike Cinemas, Inc Carnival Corp. 10, Carrols Restaurant Group, Inc Carter s, Inc. 1, Casual Male Retail Group, Inc. 1, Cato Corp.-Class A Cavco Industries, Inc CBS Corp.-Class B 16, CEC Entertainment, Inc Central European Media Ent., Ltd Charter Communications, Inc. 1, Cheesecake Factory, Inc. 1, Cherokee, Inc Chico s FAS, Inc. 4, Childrens Place Retail Stores, Inc Chipotle Mexican Grill, Inc Choice Hotels International, Inc Churchill Downs, Inc Chuy s, Inc Cinemark, Inc. 2, Citi Trends, Inc Clear Channel Outdoor, Inc.-Class A 1, Coach, Inc. 7, Coinstar, Inc The accompanying notes are an integral part of the financial statements. 59

60 BlackRock CDN Russell 3000 Index Non-Taxable Fund Par (000s)/ Consumer Discretionary (continued) Columbia Sportswear Co Comcast Corp.-Class A 67,384 1,566 2,508 Conn s, Inc Cooper Tire & Rubber Co. 1, Core-Mark Holding Co., Inc Corinthian Colleges, Inc. 2, Cracker Barrel Old Country Store, Inc Crocs, Inc. 2, CSS Industries, Inc Cumulus Media, Inc.-Class A 1, D.R. Horton, Inc. 7, Dana Holding Corp. 3, Darden Restaurants, Inc. 3, Deckers Outdoor Corp Delphi Automotive PLC 8, Delta Apparel, Inc Denny s Corp. 2, Destination Maternity Corp Devry, Inc. 1, Dick s Sporting Goods, Inc. 2, Digital Generation, Inc Dillard s, Inc.-Class A DineEquity, Inc DIRECTV 15, Discovery Communications-Class A 6, Dish Network Corp.-Class A 5, Dollar General Corp. 4, Dollar Tree, Inc. 5, Domino s Pizza, Inc. 1, Dorman Products, Inc DreamWorks Animation SKG, Inc. 1, Drew Industries, Inc DSW, Inc.-Class A Dunkin Brands Group, Inc. 1, Education Management Corp. 1, Electrolux AB-Class B 7, Entercom Communications Corp.-Class A Ethan Allen Interiors, Inc EW Scripps Co.-Class A Exide Technologies 1, Expedia, Inc. 2, Express, Inc. 2, Family Dollar Stores, Inc. 2, Federal-Mogul Corp Fiesta Restaurant Group, Inc Fifth & Pacific Co., Inc. 2, Finish Line, Inc.-Class A 1, Fisher Communications, Inc Par (000s)/ Consumer Discretionary (continued) Five Below, Inc Foot Locker, Inc. 3, Ford Motor Co. 94,152 1,427 1,214 Fortune Brands Home &, Inc. 3, Fossil, Inc. 1, Francesca s Corp Fred s, Inc.-Class A Fuel Systems Solutions, Inc G-III Apparel Group, Ltd GameStop Corp.-Class A 3, Gannett Co., Inc. 5, Gap (The), Inc. 7, Garmin, Ltd. 2, General Cable Corp. 1, General Motors Co. 19, Genesco, Inc Gentex Corp. 3, Gentherm, Inc Genuine Parts Co. 3, Global Sources, Ltd GNC, Inc.-Class A 1, Goodyear Tire & Rubber Co. (The) 6, Gordmans Stores, Inc Grand Canyon Education, Inc. 1, Group 1 Automotive, Inc Groupon, Inc H&R Block, Inc. 6, Hanesbrands, Inc. 2, Harley-Davidson, Inc. 5, Harman International Industries, Inc. 1, Harte-Hanks, Inc Hasbro, Inc. 2, Haverty Furniture Cos., Inc Helen of Troy, Ltd Hertz Global, Inc. 6, hhgregg, Inc Hibbett Sports, Inc Hillenbrand, Inc. 1, Home Depot, Inc. 38,399 1,397 2,365 HOT Topic, Inc Hovnanian Ent., Inc. 2, HSN, Inc Hyatt Hotels Corp.-Class A 1, Iconix Brand Group, Inc. 1, Ignite Restaurant Group, Inc International Game Technology 6, International Speedway Corp.-Class A Interpublic Group of Cos., Inc. 10, The accompanying notes are an integral part of the financial statements. 60

61 BlackRock CDN Russell 3000 Index Non-Taxable Fund Par (000s)/ Consumer Discretionary (continued) Interval Leisure Group, Inc irobot Corp Isle of Capri Casinos, Inc ITT Educational Services, Inc Jack in the Box, Inc. 1, Jakks Pacific, Inc Jamba, Inc. 1, Jarden Corp. 1, JC Penney Co., Inc. 3, John Wiley & Sons, Inc.-Class A 1, Johnson Controls, Inc. 17, Jones Group, Inc. 2, JOS A Bank Clothiers, Inc Journal Communications, Inc. 1, K-Swiss, Inc.-Class A K12, Inc KB Home 1, Kirkland s, Inc Kohl s Corp. 6, Krispy Kreme Doughnuts, Inc. 1, La-Z-Boy, Inc. 1, Lamar Advertising Co.-Class A 1, Las Vegas Sands Corp. 10, Leapfrog Ent., Inc. 1, Leggett & Platt, Inc. 3, Lennar Corp.-Class A 4, Libbey, Inc Liberty Global, Inc. 6, Liberty Media Corp. 2, Liberty Ventures Life Time Fitness, Inc. 1, Lifetime Brands, Inc LIN TV Corp.-Class A Lincoln Educational Services Corp Lions Gate Entertainment Corp. 2, Lithia Motors, Inc.-Class A Live Nation Entertainment, Inc. 3, LKQ Corp. 7, Lowe s Cos., Inc. 28, Ltd. Brands 6, Lumber Liquidators, Inc M/I Homes, Inc Mac-Gray Corp Macy s, Inc. 10, Madison Square Garden, Inc. 1, Maidenform Brands, Inc Marcus Corp MarineMax, Inc Par (000s)/ Consumer Discretionary (continued) Marriott International, Inc.-Class A 6, Marriott Vacations Worldwide Corp Martha Stewart Living Omnimedia- Class A Mattel, Inc. 8, Matthews International Corp.-Class A Mattress Firm Holding Corp McClatchy Co.-Class A 1, McDonald s Corp. 25,493 2,114 2,240 McGraw-Hill Cos. (The), Inc. 7, MDC, Inc MDC Partners, Inc.-Class A Men s Wearhouse, Inc. 1, Meredith Corp Meritage Homes Corp MGM Resorts International 10, Michael Kors, Ltd. 2, Modine Manufacturing Co. 1, Mohawk Industries, Inc. 1, Monro Muffler Brake, Inc Morgans Hotel Group Co Morningstar, Inc Movado Group, Inc MTR Gaming Group, Inc Multimedia Games Holding Co., Inc National CineMedia, Inc. 1, NetFlix, Inc. 1, New York Times Co.-Class A 3, Newell Rubbermaid, Inc. 7, News Corp.-Class A 52, ,337 Nike, Inc.-Class B 18, Nordstrom, Inc. 3, Nutrisystem, Inc NVR, Inc O Reilly Automotive, Inc. 2, Office Depot, Inc. 7, OfficeMax, Inc. 2, Omnicom Group 6, Orchard Supply Hardware Stores Corp.-Class A Orient-Express Hotels, Ltd. 2, Overstock.Com, Inc Oxford Industries, Inc Pandora Media, Inc. 2, Panera Bread Company Papa John s International, Inc Penn National Gaming, Inc. 1, Penske Automotive Group, Inc. 1, PEP Boys-Manny Moe & Jack 1, The accompanying notes are an integral part of the financial statements. 61

62 BlackRock CDN Russell 3000 Index Non-Taxable Fund Par (000s)/ Consumer Discretionary (continued) Perry Ellis International, Inc PetMed Express, Inc PetSmart, Inc. 2, Pier 1 Imports, Inc. 2, Pinnacle Entertainment, Inc. 1, Polaris Industries, Inc. 1, Pool Corp. 1, Priceline.Com, Inc. 1, Pulte Homes, Inc. 8, PVH Corp. 1, Quiksilver, Inc. 2, RadioShack Corp. 2, Ralph Lauren Corp. 1, ReachLocal, Inc Red Robin Gourmet Burgers, Inc Regal Entertainment Group 2, Regis Corp. 1, Rent-A-Center, Inc. 1, Rentrak Corp Ross Stores, Inc. 5, Royal Caribbean Cruises, Ltd. 3, Ruby Tuesday, Inc. 1, Rue21, Inc Ruth s Hospitality Group, Inc. 1, Ryland Group, Inc. 1, Ryman Hospitality Properties-REIT Saga Communications, Inc.-Class A Saks, Inc. 2, Sally Beauty, Inc. 3, Scholastic Corp Scientific Games Corp. 1, Scripps Networks Interactive-Class A 2, Sealy Corp. 2, Sears Corp Select Comfort Corp. 1, Service Corp. International/US 5, Sherwin-Williams Co. (The) 2, SHFL Entertainment, Inc. 1, Shoe Carnival, Inc Shutterfly, Inc Signet Jewelers, Ltd. 2, Sinclair Broadcast Group, Inc. 1, Sirius XM Radio, Inc. 95, Six Flags Entertainment Corp Skechers U.S.A., Inc.-Class A Skullcandy, Inc Smith & Wesson Holding Corp. 1, Sonic Automotive, Inc.-Class A 1, Par (000s)/ Consumer Discretionary (continued) Sonic Corp. 1, Sotheby s 1, Spartan Motors, Inc. 1, Speedway Motorsports, Inc Stage Stores, Inc Standard Motor Products, Inc Standard Pacific Corp. 2, Staples, Inc. 17, Starbucks Corp. 19, ,019 Starwood Hotels & Resorts Worldwide, Inc. 4, Stein Mart, Inc Steiner Leisure, Ltd Steinway Musical Instruments, Inc Steven Madden, Ltd Stewart Ent., Inc.-Class A 1, Stoneridge, Inc Strayer Education, Inc Sturm Ruger & Co., Inc Superior Industries International, Inc Systemax, Inc Target Corp. 16, Teavana, Inc Tempur-Pedic International, Inc. 1, Tenneco, Inc. 1, Tesla Motors, Inc. 1, Texas Roadhouse, Inc. 1, Thomson Reuters Corp. 9, Thor Industries, Inc. 1, Tiffany & Co. 3, Tilly s, Inc.-Class A Time Warner Cable 7, Time Warner, Inc. 24, ,145 TJX Cos., Inc. 18, Toll Brothers, Inc. 3, Town Sports International, Inc Tractor Supply Co. 1, Tripadvisor, Inc. 2, True Religion Apparel, Inc Tuesday Morning Corp Tumi, Inc Tupperware Brands Corp. 1, Ulta Salon Cosmetics & Fragrance, Inc. 1, Under Armour, Inc.-Class A 1, Unifi, Inc Universal Electronics, Inc Universal Technical Institute, Inc The accompanying notes are an integral part of the financial statements. 62

63 BlackRock CDN Russell 3000 Index Non-Taxable Fund Par (000s)/ Consumer Discretionary (continued) Urban Outfitters, Inc. 2, Vail Resorts, Inc Valassis Communications, Inc. 1, Vera Bradley, Inc VF Corp. 2, Viacom, Inc.-Class B 13, Virgin Media, Inc. 6, Visteon Corp. 1, Vitamin Shoppe, Inc Voxx International Corp Walt Disney Co. (The) 44,818 1,756 2,221 Warnaco Group, Inc. 1, Washington Post Co. (The)-Class B Weight Watchers International, Inc Wendy s Co. 6, West Marine, Inc Wet Seal, Inc.-Class A 2, Weyco Group, Inc Whirlpool Corp. 1, Williams-Sonoma, Inc. 2, Winmark Corp Winnebago Industries, Inc WMS Industries, Inc. 1, Wolverine World Wide, Inc. 1, World Wrestling Entertainment, Inc Wyndham Worldwide Corp. 3, Wynn Resorts, Ltd. 2, Yum! Brands, Inc. 11, Zumiez, Inc ,179 49,713 Consumer Staples 9.1% Alliance One International, Inc. 1, Altria Group, Inc. 51,058 1,340 1,598 Andersons, Inc Annie s, Inc Archer-Daniels-Midland Co. 16, Avon Products, Inc. 10, B&G Foods, Inc.-Class A 1, Boston Beer Co., Inc.-Class A Brown-Forman Corp.-Class B 3, Bunge, Ltd. 3, Cal-Maine Foods, Inc Calavo Growers, Inc Campbell Soup Co. 4, Casey s General Stores, Inc Central Euro Distribution Corp. 1, Central Garden and Pet Co. 1, Chefs Warehouse, Inc Par (000s)/ Consumer Staples (continued) Chiquita Brands International, Inc. 1, Church & Dwight Co., Inc. 3, Clorox Co. 3, Coca-Cola Bottling Co. Consolidated Coca-Cola Co. (The) 97,563 3,283 3,523 Coca-Cola Ent., Inc. 7, Colgate-Palmolive Co. 11,970 1,001 1,246 ConAgra Foods, Inc. 10, Constellation Brands, Inc.-Class A 3, Costco Wholesale Corp. 10, ,071 CVS Caremark Corp. 32,126 1,128 1,547 Darling International, Inc. 2, Dean Foods Co. 4, Diamond Foods, Inc Dole Food Co., Inc Dr Pepper Snapple Group, Inc. 5, Elizabeth Arden, Inc Energizer, Inc. 1, Estee Lauder Cos. (The), Inc.- Class A 5, Flowers Foods, Inc. 2, Fresh Del Monte Produce, Inc Fresh Market, Inc General Mills, Inc. 16, Green Mountain Coffee Roasters, Inc. 3, Hain Celestial Group, Inc Harbinger Group, Inc. 1, Harris Teeter Supermarkets, Inc. 1, Heckmann Corp. 4, Herbalife, Ltd. 2, Hershey Co. (The) 3, Hillshire Brands Co. 2, HJ Heinz Co. 8, Hormel Foods Corp. 3, Ingles Markets, Inc.-Class A Ingredion, Inc. 1, Inter Parfums, Inc J&J Snack Foods Corp JM Smucker Co. (The) 2, John B. Sanfilippo & Son, Inc Kellogg Co. 6, Kimberly-Clark Corp. 9, Kraft Foods Group, Inc. 14, Kroger Co. (The) 13, Lancaster Colony Corp Limoneira Co Lorillard, Inc. 3, McCormick & Co., Inc. 3, Mead Johnson Nutrition Co.-Class A 5, The accompanying notes are an integral part of the financial statements. 63

64 BlackRock CDN Russell 3000 Index Non-Taxable Fund Par (000s)/ Consumer Staples (continued) Medifast, Inc Molson Coors Brewing Co.-Class B 3, Mondelez International, Inc. 44, ,129 Monster Beverage Corp. 3, Nash Finch Co National Beverage Corp Natural Grocers By Vitamin Cottage, Inc Nature s Sunshine Products, Inc Nu Skin Ent., Inc. 1, Nutraceutical International Corp Omega Protein Corp Owens Corning 3, Pantry, Inc PepsiCo, Inc. 39,274 2,635 2,676 Philip Morris International, Inc. 42,833 2,760 3,568 Post, Inc Prestige Brands, Inc. 1, Pricesmart, Inc Procter & Gamble Co. (The) 68,763 4,396 4,650 Ralcorp, Inc. 1, Revlon, Inc.-Class A Reynolds American, Inc. 8, Rite Aid Corp. 15, Roundy s, Inc Safeway, Inc. 5, Sanderson Farms, Inc Seneca Foods Corp.-Class A Smithfield Foods, Inc. 3, Snyders-Lance, Inc. 1, Spartan Stores, Inc Spectrum Brands, Inc Star Scientific, Inc. 3, Supervalu, Inc. 5, Susser Corp Synutra International, Inc Sysco Corp. 14, Tootsie Roll Industries, Inc TreeHouse Foods, Inc Tyson Foods, Inc.-Class A 7, United Natural Foods, Inc. 1, Universal Corp USANA Health Sciences, Inc Vector Group, Ltd. 1, Village Super Market, Inc.-Class A Wal-Mart Stores, Inc. 42,413 2,457 2,883 Walgreen Co. 21, WD-40 Co Par (000s)/ Consumer Staples (continued) Weis Markets, Inc Whole Foods Market, Inc. 4, ,815 36,396 Energy 9.8% Abraxas Petroleum Corp. 2, Alon USA Energy, Inc Alpha Natural Resources, Inc. 5, Amyris, Inc Anadarko Petroleum Corp. 12, Apache Corp. 9,823 1, Apco Oil and Gas International, Inc Approach Resources, Inc. 1, Atmos Energy Corp. 2, Atwood Oceanics, Inc. 1, Baker Hughes, Inc. 11, Basic Energy Services, Inc Berry Petroleum Co.-Class A 1, Bill Barrett Corp. 1, Bonanza Creek Energy, Inc BPZ Resources, Inc. 2, Bristow Group, Inc C&J Energy Services, Inc. 1, Cabot Oil & Gas Corp. 5, Cal Dive International, Inc. 3, Callon Petroleum Co. 1, Cameron International Corp. 6, CARBO Ceramics, Inc Carrizo Oil & Gas, Inc Cheniere Energy, Inc. 5, Chesapeake Energy Corp. 16, Chevron Corp. 49,505 4,485 5,334 Cimarex Energy Co. 2, Clayton Williams Energy, Inc Clean Energy Fuels Corp. 1, Cloud Peak Energy, Inc. 1, Cobalt International Energy, Inc. 4, Concho Resources, Inc. 2, ConocoPhillips 31,750 1,594 1,834 Consol Energy, Inc. 5, Contango Oil & Gas Co Crosstex Energy, Inc. 1, CVR Energy, Inc Dawson Geophysical Co Delek U.S., Inc Denbury Resources, Inc. 9, Devon Energy Corp. 10, Diamond Offshore Drilling, Inc. 1, The accompanying notes are an integral part of the financial statements. 64

65 BlackRock CDN Russell 3000 Index Non-Taxable Fund Par (000s)/ Energy (continued) Dril-Quip, Inc Emerald Oil, Inc Endeavour International Corp. 1, Energen Corp. 1, Energy XXI Bermuda, Ltd. 1, EOG Resources, Inc. 6, EPL Oil & Gas, Inc Evolution Petroleum Corp EXCO Resources, Inc. 3, Exterran, Inc. 1, Exxon Mobil Corp. 117,391 8,884 10,122 FMC Technologies, Inc. 6, Forest Oil Corp. 2, Forum Energy Technologies, Inc Frontline, Ltd. 1, FX Energy, Inc. 1, GasLog, Ltd Gastar Exploration, Ltd. 1, Genie Energy, Ltd.-Class B Geospace Technologies Corp Gevo, Inc Global Geophysical Services, Inc Golar LNG, Ltd. 1, Goodrich Petroleum Corp Green Plains Renewable Energy, Inc Gulf Island Fabrication, Inc Gulfmark Offshore, Inc.-Class A Gulfport Energy Corp. 1, Halcon Resources Corp. 2, Halliburton Co. 23, Harvest Natural Resources, Inc. 1, Helix Energy Solutions Group, Inc. 2, Helmerich & Payne, Inc. 2, Hercules Offshore, Inc. 4, Hess Corp. 7, HollyFrontier Corp. 5, Hornbeck Offshore Services, Inc ION Geophysical Corp. 3, Key Energy Services, Inc. 3, Kinder Morgan, Inc. 12, Kior, Inc.-Class A Kirby Corp. 1, Knightsbridge Tankers, Ltd Kodiak Oil & Gas Corp. 6, Kosmos Energy, Ltd. 1, Laredo Petroleum, Inc Lufkin Industries, Inc Magnum Hunter Resources Corp. 3, Par (000s)/ Energy (continued) Magnum Hunter Resources Corp. WTS Marathon Oil Corp. 17, Marathon Petroleum Corp. 8, Matador Resources Co Matrix Service Co McDermott International, Inc. 5, McMoRan Exploration Co. 2, Midstates Petroleum Co., Inc Miller Energy Resources, Inc. 1, Mitcham Industries, Inc Murphy Oil Corp. 4, Nabors Industries, Ltd. 7, National Fuel Gas Co. 1, National Oilwell Varco, Inc. 10, Natural Gas Services Group, Inc Newfield Exploration Company 3, Newpark Resources, Inc. 2, Noble Energy, Inc. 4, Nordic American Tanker Shipping 1, Northern Oil and Gas, Inc. 1, NRG Energy, Inc. 8, Oasis Petroleum, Inc. 1, Occidental Petroleum Corp. 20,378 1,869 1,554 Oceaneering International, Inc. 2, Oil States International, Inc. 1, Panhandle Oil and Gas, Inc Parker Drilling Co. 3, Patterson-UTI Energy, Inc. 3, PDC Energy, Inc Peabody Energy Corp. 6, Penn Virginia Corp. 2, Petroquest Energy, Inc. 1, PHI, Inc Phillips 66 15, Pioneer Energy Services Corp. 1, Pioneer Natural Resources Co. 3, Plains Exploration & Product 3, QEP Resources, Inc. 4, Quicksilver Resources, Inc. 2, Range Resources Corp. 4, Rentech, Inc. 5, Resolute Energy Corp. 1, Rex American Resources Corp Rex Energy Corp Rignet, Inc Rosetta Resources, Inc. 1, Rowan Cos. PLC 3, The accompanying notes are an integral part of the financial statements. 65

66 BlackRock CDN Russell 3000 Index Non-Taxable Fund Par (000s)/ Energy (continued) RPC, Inc. 1, Sanchez Energy Corp SandRidge Energy, Inc. 12, Schlumberger, Ltd. 33,518 2,681 2,312 Scorpio Tankers, Inc. 2, Seacor, Inc SemGroup Corp.-Class A 1, Ship Finance International, Ltd. 1, SM Energy Co. 1, Solazyme, Inc Southwestern Energy Co. 8, Spectra Energy Corp. 16, Stone Energy Corp. 1, Superior Energy Services, Inc. 3, Swift Energy Co. 1, Targa Resources Corp Teekay Corp Teekay Tankers, Ltd.-Class A 1, Tesco Corp Tesoro Corp. 3, Tetra Technologies, Inc. 2, TGC Industries, Inc Tidewater, Inc. 1, Triangle Petroleum Corp. 1, Ultra Petroleum Corp. 3, Unit Corp. 1, Uranerz Energy Corp. 2, Uranium Energy Corp. 2, Vaalco Energy, Inc. 1, Valero Energy Corp. 13, Vantage Drilling Co. 6, W&T Offshore, Inc Warren Resources, Inc. 2, Western Refining, Inc. 1, Westmoreland Coal Co Willbros Group, Inc Williams Cos., Inc. 16, World Fuel Services Corp. 1, WPX Energy, Inc. 4, ZaZa Energy Corp. 1, ,844 39,017 Financials 17.6% 1st Source Corp st United Bancorp, Inc Acadia Realty Trust-REIT 1, Affiliated Managers Group 1, Aflac, Inc. 11, AG Mortgage Investment Trust, Inc Par (000s)/ Financials (continued) Agree Realty Corp. REIT Alexander & Baldwin, Inc. 1, Alexander s, Inc. REIT Alexandria Real Estate Equities, Inc. REIT 1, Alleghany Corp Alliance Financial Corp Allied World Assurance Co., Ltd Allstate Corp. (The) 12, American Assets Trust, Inc.-REIT American Campus Communities, Inc. REIT 2, American Capital Agency Corp. REIT 8, American Capital Mortgage Investment Corp American Capital, Ltd. 8, American Equity Investment Life Holding Co. 1, American Express Co. 25,165 1,183 1,440 American Financial Group, Inc. 2, American International Group, Inc. 16, American National Bankshares, Inc American National Insurance Co American Realty Capital Trust, Inc.- REIT 3, American Safety Insurance, Ltd American Tower Corp. REIT 9, Ameriprise Financial, Inc. 5, Ameris Bancorp AMERISAFE, Inc Ames National Corp Amtrust Financial Services, Inc Anworth Mortgage Asset Corp. REIT 3, AON PLC 8, Apartment Investment & Management Co. REIT-Class A 3, Apollo Commercial Real Estate Finance, Inc. REIT 1, Apollo Investment Corp. 5, Apollo Residential Mortgage, Inc Arch Capital Group, Ltd. 3, Ares Capital Corp. 6, Ares Commercial Real Estate Corp Argo Group International, Ltd Arlington Asset Investment Corp Armour Residential REIT, Inc. 7, The accompanying notes are an integral part of the financial statements. 66

67 BlackRock CDN Russell 3000 Index Non-Taxable Fund Par (000s)/ Financials (continued) Arrow Financial Corp Arthur J Gallagher & Co. 2, Artio Global Investors, Inc. 1, Ashford Hospitality Trust, Inc.-REIT 1, Aspen Insurance, Ltd. 1, Associated Banc-Corp. 4, Associated Estates Realty Corp. REIT 1, Assurant, Inc. 2, Assured Guaranty, Ltd. 4, Astoria Financial Corp. 2, Australia & New Zealand Banking Group, Ltd. 5, AvalonBay Communities, Inc. REIT 2, Axis Capital, Ltd. 2, Baldwin & Lyons, Inc.-Class B Bancfirst Corp Banco Latinoamericano de Comercio Exterior SA Bancorp, Inc BancorpSouth, Inc. 2, Bank Mutual Corp Bank of America Corp. 270,603 2,871 3,128 Bank of Hawaii Corp. 1, Bank of Kentucky Financial Corp Bank of Marin Bancorp Bank of New York Mellon Corp. 29, Bank of the Ozarks, Inc BankFinancial Corp BankUnited, Inc Banner Corp BB&T Corp. 17, BBCN Bancorp, Inc. 1, Beneficial Mutual Bancorp, Inc Berkshire Hathaway, Inc.-Class B 44,699 3,653 3,996 Berkshire Hills Bancorp, Inc BGC Partners, Inc.-Class A 2, BioMed Realty Trust, Inc.-REIT 3, BlackRock Kelso Capital Corp. 1, BlackRock, Inc. 3, BofI Holding, Inc BOK Financial Corp Boston Private Financial, Inc. 2, Boston Properties, Inc. REIT 3, Brandywine Realty Trust-REIT 3, BRE Properties, Inc. REIT 1, Bridge Bancorp, Inc Bridge Capital Broadridge Financial Solutions, Inc. 3, Par (000s)/ Financials (continued) Brookline Bancorp, Inc. 1, Brown & Brown, Inc. 2, Bryn Mawr Bank Corp Calamos Asset Management, Inc Camden National Corp Camden Property Trust-REIT 2, Campus Crest Communities, Inc. REIT 1, Capital One Financial Corp. 14, Capital Southwest Corp Capitalsource, Inc. REIT 5, Capitol Federal Financial, Inc. 3, CapLease, Inc. REIT 1, Capstead Mortgage Corp. REIT 2, Cardinal Financial Corp Cash America International, Inc Cathay General Bancorp 1, CBL & Associates Properties, Inc. REIT 3, CBOE, Inc. 2, CBRE Group, Inc. 8, Cedar Shopping Centers, Inc. REIT 1, Centerstate Banks, Inc Central Pacific Financial Corp Charles Schwab Corp. (The) 27, Chatham Lodging Trust-REIT Chemical Financial Corp Chesapeake Lodging Trust-REIT Chimera Investment Corp. REIT 25, Chubb Corp. 6, Cincinnati Financial Corp. 3, CIT Group, Inc. 5, Citigroup, Inc. 73,649 2,926 2,902 Citizens & Northern Corp Citizens Republic Bancorp, Inc. 1, Citizens, Inc City Holding Co City National Corp. 1, CME Group, Inc. 8, CNA Financial Corp CNB Financial Corp CNO Financial Group, Inc. 5, CoBiz Financial, Inc Cohen & Steers, Inc Colonial Properties Trust-REIT 2, Colony Financial, Inc. REIT 1, Columbia Banking System, Inc. 1, Comerica, Inc. 4, Commerce Bancshares, Inc. 2, The accompanying notes are an integral part of the financial statements. 67

68 BlackRock CDN Russell 3000 Index Non-Taxable Fund Par (000s)/ Financials (continued) CommonWealth REIT 2, Community Bank System, Inc Community Trust Bancorp, Inc Coresite Realty Corp. REIT Corporate Office Properties REIT 2, Cousins Properties, Inc. REIT 2, Cowen Group, Inc.-Class A 2, Crawford & Co.-Class B Credit Acceptance Corp CreXus Investment Corp. REIT 1, Cubesmart REIT 3, Cullen/Frost Bankers, Inc. 1, CVB Financial Corp. 2, CYS Investments, Inc. REIT 4, DCT Industrial Trust, Inc.-REIT 6, DDR Corp. REIT 6, DFC Global Corp. 1, Diamond Hill Investment Group, Inc DiamondRock Hospitality Co. REIT 4, Digital Realty Trust, Inc.-REIT 3, Dime Community Bancshares, Inc Discover Financial Services 13, Doral Financial Corp. 4, Douglas Emmett, Inc. REIT 3, Duff & Phelps Corp.-Class A Duke Realty Corp. REIT 6, DuPont Fabros Technology, Inc. REIT 1, E*Trade Financial Corp. 7, Eagle Bancorp, Inc East West Bancorp, Inc. 3, EastGroup Properties, Inc. REIT Eaton Vance Corp. 2, Education Realty Trust, Inc.-REIT 2, ehealth, Inc Encore Capital Group, Inc Endurance Specialty, Ltd. 1, Enstar Group, Ltd Enterprise Financial Services Corp Epoch Holding Corp EPR Properties REIT 1, Equity Lifestyle Properties, Inc. REIT 1, Equity One, Inc. REIT 1, Equity Residential REIT 8, Erie Indemnity Co.-Class A ESB Financial Corp ESSA Bancorp, Inc Essex Property Trust, Inc.-REIT Everbank Financial Corp Par (000s)/ Financials (continued) Evercore Partners, Inc.-Class A Everest Re Group Ltd. 1, Excel Trust, Inc.-REIT 1, Extra Space Storage, Inc. REIT 2, Ezcorp, Inc.-Class A 1, Factset Research Systems, Inc. 1, FBL Financial Group, Inc.-Class A FBR Capital Markets Corp Federal Agricultural Mortgage Corp.-Class C Federal Realty Investment Trust-REIT 1, Federated Investors, Inc.-Class B 2, FelCor Lodging Trust, Inc.-REIT 3, Fidelity National Financial, Inc. 5, Fidus Investment Corp Fifth Street Finance Corp. 3, Fifth Third Bancorp 23, Financial Engines, Inc. 1, Financial Institutions, Inc First American Financial Corp. 2, First Bancorp First Bancorp, Inc First Bancorp Puerto Rico 1, First Busey Corp. 1, First California Financial Group, Inc First Cash Financial Services, Inc First Citizens BancShares, Inc.- Class A First Commonwealth Financial Corp. 2, First Community Bancshares, Inc First Connecticut Bancorp, Inc First Defiance Financial Corp First Financial Bancorp 1, First Financial Bankshares, Inc First Financial Corp First Financial, Inc First Horizon National Corp. 6, First Industrial Realty Trust, Inc.-REIT 2, First Interstate Bancsystem, Inc First Merchants Corp First Midwest Bancorp, Inc. 1, First Niagara Financial Group 8, First of Long Island Corp First Pactrust Bancorp, Inc First Potomac Realty Trust-REIT 1, First Republic Bank 2, FirstMerit Corp. 2, Flushing Financial Corp FNB Corp. 3, The accompanying notes are an integral part of the financial statements. 68

69 BlackRock CDN Russell 3000 Index Non-Taxable Fund Par (000s)/ Financials (continued) FNB United Corp Forest City Enterprises-Class A 3, Forestar Group, Inc Fox Chase Bancorp, Inc Franklin Financial Corp Franklin Resources, Inc. 3, Franklin Street Properties Corp. REIT 1, Fulton Financial Corp. 4, FXCM, Inc GAMCO Investors, Inc General Growth Properties, Inc. REIT 13, Genworth Financial, Inc.-Class A 12, German American Bancorp, Inc Getty Realty Corp. REIT GFI Group, Inc. 1, Glacier Bancorp, Inc. 1, Gladstone Capital Corp Gladstone Commercial Corp. REIT 1, Gladstone Investment Corp Glimcher Realty Trust-REIT 3, Global Indemnity PLC Goldman Sachs Group, Inc. 12,338 1,836 1,568 Golub Capital BDC, Inc Government Properties Income Trust-REIT 1, Gramercy Capital Corp. REIT 1, Great Southern Bancorp, Inc Green Dot Corp.-Class A Greenhill & Co., Inc Greenlight Capital Re, Ltd GSV Capital Corp Guaranty Bancorp. 2, Gyrodyne Co. of America, Inc. REIT Hancock Holding Co. 2, Hanmi Financial Corp Hanover Insurance Group, Inc. 1, Harris & Harris Group, Inc. 1, Hartford Financial Services Group, Inc. 11, Hatteras Financial Corp. REIT 2, HCC Insurance, Inc. 2, HCP, Inc. 11, Health Care, Inc. REIT 6, Healthcare Realty Trust, Inc.-REIT 2, Heartland Financial USA, Inc Hercules Technology Growth Capital, Inc. 1, Heritage Financial Corp Hersha Hospitality Trust-REIT 4, Par (000s)/ Financials (continued) HFF, Inc.-Class A Highwoods Properties, Inc. REIT 1, Hilltop, Inc Home Bancshares, Inc Home Federal Bancorp, Inc Home Loan Servicing Solutions, Ltd Home Properties, Inc. REIT 1, Homeowners Choice, Inc Homestreet, Inc Hometrust Bancshares, Inc Horace Mann Educators Corp. 1, Hospitality Properties Trust-REIT 3, Host Hotels & Resorts, Inc. REIT 18, Howard Hughes Corp Hudson City Bancorp, Inc. 13, Hudson Pacific Properties, Inc. REIT 1, Hudson Valley Holding Corp Huntington Bancshares, Inc. 22, Iberiabank Corp Independent Bank Corp Infinity Property & Casualty Corp Inland Real Estate Corp. REIT 2, Interactive Brokers Group, Inc.- Class A 1, IntercontinentalExchange, Inc. 1, International Bancshares Corp. 1, Internet Capital Group, Inc. 1, INTL FCStone, Inc Invesco Mortgage Capital, Inc. REIT 2, Invesco, Ltd. 11, Investment Technology Group, Inc. 1, Investors Bancorp, Inc. 1, Investors Real Estate Trust-REIT 2, istar Financial, Inc. REIT 2, Janus Capital Group, Inc. 4, Jefferies Group, Inc. 3, JMP Group, Inc Joyo Bank, Ltd. (The) 1, JPMorgan Chase & Co. 95,530 3,702 4,184 Kansas City Life Insurance Co KBW, Inc KCAP Financial, Inc Kemper Corp. 1, Kennedy-Wilson, Inc. 1, Keycorp 23, Kilroy Realty Corp. REIT 1, Kimco Realty Corp. REIT 10, Kite Realty Group Trust-REIT 3, Knight Capital Group, Inc. 4, The accompanying notes are an integral part of the financial statements. 69

70 BlackRock CDN Russell 3000 Index Non-Taxable Fund Par (000s)/ Financials (continued) Ladenburg Thalmann Financial Services, Inc. 3, Lakeland Bancorp, Inc Lakeland Financial Corp LaSalle Hotel Properties REIT 2, Legg Mason, Inc. 3, Lender Processing Services, Inc. 2, Leucadia National Corp. 4, Lexington Realty Trust-REIT 3, Liberty Property Trust-REIT 2, Lincoln National Corp. 7, Loews Corp. 7, LPL Financial, Inc. 1, LTC Properties, Inc. REIT M&T Bank Corp. 3, Macerich Co. REIT 3, Mack-Cali Realty Corp. REIT 2, Maiden, Ltd. 1, Main Street Capital Corp MainSource Financial Group, Inc Manning & Napier, Inc Markel Corp MarketAxess, Inc Marlin Business Services Corp Marsh & McLennan Cos., Inc. 13, MB Financial, Inc. 1, MBIA, Inc. 3, MCG Capital Corp. 2, Meadowbrook Insurance Group, Inc. 1, Medallion Financial Corp Medical Properties Trust, Inc.-REIT 3, Medley Capital Corp. 1, Mercantile Bank Corp Merck & Co., Inc. 76,361 2,800 3,114 Mercury General Corp Metlife, Inc. 21, Metro Bancorp, Inc Metrocorp Bancshares, Inc MFA Financial, Inc. REIT 8, MGIC Investment Corp. 6, Mid-America Apartment Communities, Inc. REIT 1, Midwestone Financial Group, Inc Monmouth Real Estate Investment Corp. REIT-Class A Montpelier Re, Ltd. 1, Moody s Corp. 4, Morgan Stanley 38, MSCI, Inc. 3, Par (000s)/ Financials (continued) MVC Capital, Inc NASDAQ OMX Group, Inc. 2, National Bankshares, Inc National Financial Partners Corp National Health Investors, Inc. REIT National Interstate Corp National Penn Bancshares, Inc. 3, National Retail Properties, Inc. REIT 2, National Western Life Insurance Co.- Class A Nationstar Mortgage, Inc Navigators Group, Inc NBT Bancorp, Inc Nelnet, Inc.-Class A Netspend, Inc New Mountain Finance Corp. 1, New York Community Bancorp, Inc. 10, New York Mortgage Trust, Inc.-REIT 2, NewStar Financial, Inc NGP Capital Resources Co Nicholas Financial, Inc Northern Trust Corp. 5, Northfield Bancorp, Inc NorthStar Realty Finance Corp. REIT 4, Northwest Bancshares, Inc. 2, NYSE Euronext 6, OceanFirst Financial Corp Ocwen Financial Corp. 2, Old National Bancorp 3, Old Republic International Corp. 6, Omega Healthcare Investors, Inc. REIT 2, OmniAmerican Bancorp, Inc One Liberty Properties, Inc. REIT OneBeacon Insurance Group, Ltd Oppenheimer, Inc.-Class A Oriental Financial Group, Inc. 1, Oritani Financial Corp. 1, Pacific Continental Corp PacWest Bancorp Park National Corp Park Sterling Corp. 1, Parkway Properties, Inc. REIT PartnerRe, Ltd. 1, Peapack Gladstone Financial Corp Pebblebrook Hotel Trust-REIT 1, PennantPark Investment Corp. 1, Penns Woods Bancorp, Inc The accompanying notes are an integral part of the financial statements. 70

71 BlackRock CDN Russell 3000 Index Non-Taxable Fund Par (000s)/ Financials (continued) Pennsylvania Real Estate Investment Trust-REIT 1, People s United Financial, Inc. 8, Peoples Bancorp, Inc PHH Corp. 1, Phoenix Cos., Inc Pico, Inc Piedmont Office Realty Trust, Inc.- REIT 4, Pinnacle Financial Partners, Inc Piper Jaffray Cos Platinum Underwriters, Ltd Plum Creek Timber Co., Inc. REIT 4, PNC Financial Services Group, Inc. 13, Popular, Inc. 2, Portfolio Recovery Associates, Inc Post Properties, Inc. REIT 1, Potlatch Corp. REIT 1, Preferred Bank Primerica, Inc. 1, Principal Financial Group 7, PrivateBancorp, Inc. 1, ProAssurance Corp. 1, Progressive Corp. (The) 15, ProLogis, Inc. REIT 11, Prospect Capital Corp. 4, Prosperity Bancshares, Inc. 1, Protective Life Corp. 2, Provident Financial Services, Inc. 1, Provident New York Bancorp Prudential Financial, Inc. 11, PS Business Parks, Inc. REIT Public Storage, Inc. REIT 3, Radian Group, Inc. 3, RAIT Financial Trust-REIT 1, Ramco-Gershenson Properties Trust-REIT 1, Raymond James Financial, Inc. 2, Rayonier, Inc. REIT 3, Realogy Corp. 1, Realty Income Corp. REIT 3, Redwood Trust, Inc.-REIT 2, Regency Centers Corp. REIT 2, Regions Financial Corp. 35, Reinsurance Group of America, Inc. 1, RenaissanceRe, Ltd. 1, Renasant Corp Republic Bancorp, Inc.-Class A Resource Capital Corp. REIT 3, Par (000s)/ Financials (continued) Retail Opportunity Investments Corp. REIT 1, Retail Properties of America, Inc. REIT 2, RLI Corp RLJ Lodging Trust-REIT 2, Rockville Financial, Inc Rouse Properties, Inc. REIT S&T Bancorp, Inc Sabra Healthcare, Inc. REIT Safeguard Scientifics, Inc Safety Insurance Group, Inc Sandy Spring Bancorp, Inc Saul Centers, Inc. REIT SCBT Financial Corp SeaBright, Inc Seacoast Banking Corp. of Florida 1, SEI Investments Co. 3, Select Income REIT Selective Insurance Group, Inc. 1, Senior Housing Properties Trust- REIT 4, Signature Bank 1, Simmons First National Corp.-Class A Simon Property Group, Inc. REIT 7, ,196 SL Green Realty Corp. REIT 2, SLM Corp. 12, Solar Capital, Ltd. 1, Solar Senior Capital, Ltd Southside Bancshares, Inc Southwest Bancorp, Inc Sovran Self Storage, Inc. REIT St. Joe Co. 1, STAG Industrial, Inc. REIT StanCorp Financial Group, Inc. 1, Starwood Property Trust, Inc.-REIT 3, State Auto Financial Corp State Bank Financial Corp State Street Corp. 12, StellarOne Corp Stellus Capital Investment Corp Sterling Bancorp Sterling Financial Corp Stewart Information Services Corp Stifel Financial Corp. 1, Strategic Hotels & Resorts, Inc. REIT 4, Summit Hotel Properties, Inc. REIT Sun Bancorp, Inc The accompanying notes are an integral part of the financial statements. 71

72 BlackRock CDN Russell 3000 Index Non-Taxable Fund Par (000s)/ Financials (continued) Sun Communities, Inc. REIT Sunstone Hotel Investors, Inc. REIT 3, SunTrust Banks, Inc. 13, Susquehanna Bancshares, Inc. 4, SVB Financial Group 1, SWS Group, Inc SY Bancorp, Inc Symetra Financial Corp. 1, Synovus Financial Corp. 17, T Rowe Price Group, Inc. 6, Tanger Factory Outlet Centers REIT 2, Taubman Centers, Inc. REIT 1, Taylor Capital Group, Inc TCF Financial Corp. 3, TD Ameritrade Holding Corp. 5, Tejon Ranch Co Terreno Realty Corp. REIT Territorial Bancorp, Inc Texas Capital Bancshares, Inc TFS Financial Corp. 1, THL Credit, Inc Thomas Properties Group, Inc TICC Capital Corp. 1, Tompkins Financial Corp Torchmark Corp. 2, Tower Group, Inc Towers Watson & Co.-Class A 1, TowneBank Travelers Cos. (The), Inc. 9, Triangle Capital Corp Trico Bancshares Trustco Bank Corp. 2, Trustmark Corp. 1, Two Harbors Investment Corp. REIT 7, U.S. Bancorp 47,596 1,244 1,514 UDR, Inc. REIT 6, UMB Financial Corp UMH Properties, Inc. REIT Umpqua Corp. 2, Union First Market Bankshares Corp United Bankshares, Inc. 1, United Community Banks, Inc United Financial Bancorp, Inc United Fire Group, Inc Universal American Corp Universal Health Realty Income Trust-REIT Universal Insurance, Inc. 1, Univest Corp. of Pennsylvania Par (000s)/ Financials (continued) Unum Group 7, Urstadt Biddle Properties, Inc., REIT-Class A Validus, Ltd. 2, Valley National Bancorp 4, Ventas, Inc. REIT 7, ViewPoint Financial Group Virginia Commerce Bancorp, Inc Virtus Investment Partners, Inc Visa, Inc.-Class A 13,119 1,114 1,979 Vornado Realty Trust-REIT 4, Waddell & Reed Financial-Class A 2, Walker & Dunlop, Inc Walter Investment Management Corp. REIT Washington Banking Co Washington Federal, Inc. 2, Washington Real Estate Investment Trust-REIT 1, Washington Trust Bancorp, Inc Webster Financial Corp. 1, Weingarten Realty Investors REIT 3, Wells Fargo & Co. 123,062 3,566 4,192 WesBanco, Inc West Bancorporation, Inc Westamerica Bancorporation Western Alliance Bancorp 1, Western Asset Mortgage Capital Corp. REIT Westfield Financial, Inc Westwood Group, Inc White Mountains Insurance Group, Ltd Whitestone REIT Wilshire Bancorp, Inc. 1, Winthrop Realty Trust-REIT Wintrust Financial Corp Wisdomtree Investments, Inc. 1, World Acceptance Corp WR Berkley Corp. 2, WSFS Financial Corp XL Group PLC 7, Zions Bancorporation 4, ,829 70,527 Health Care 11.0% Abaxis, Inc Abbott Laboratories 39,482 2,011 2,575 ABIOMED, Inc Acadia Healthcare Co., Inc The accompanying notes are an integral part of the financial statements. 72

73 BlackRock CDN Russell 3000 Index Non-Taxable Fund Par (000s)/ Health Care (continued) Accelrys, Inc. 1, Accenture PLC-Class A 16, ,071 Accretive Health, Inc. 1, Accuray, Inc. 1, Achillion Pharmaceuticals, Inc. 1, Acorda Therapeutics, Inc. 1, Aegerion Pharmaceuticals, Inc Aetna, Inc. 8, Affymax, Inc Affymetrix, Inc. 1, Agenus, Inc Air Methods Corp Akorn, Inc. 1, Alere, Inc. 2, Alexion Pharmaceuticals 4, Align Technology, Inc. 1, Alkermes PLC 3, Allergan, Inc. 7, Allos Therapeutics, Inc. 5, Allscripts Healthcare Solutions, Inc. 4, Almost Family, Inc Alnylam Pharmaceuticals, Inc. 1, Alphatec, Inc. 1, AMAG Pharmaceuticals Inc Amedisys, Inc AmerisourceBergen Corp. 6, Amgen, Inc. 19,519 1,146 1,678 Amicus Therapeutics, Inc AMN Healthcare Services, Inc. 1, Ampio Pharmaceuticals, Inc Amsurg Corp Analogic Corp Angiodynamics, Inc Anika Therapeutics, Inc Antares Pharma, Inc. 3, Arena Pharmaceuticals, Inc. 5, Ariad Pharmaceuticals, Inc. 4, Arqule, Inc. 1, Array Biopharma, Inc. 3, Arthrocare Corp Assisted Living Concepts, Inc Astex Pharmaceuticals 2, athenahealth, Inc AtriCure, Inc Atrion Corp Auxilium Pharmaceuticals, Inc. 1, AVANIR Pharmaceuticals, Inc. 3, AVEO Pharmaceuticals, Inc Par (000s)/ Health Care (continued) Baxter International, Inc. 13, Becton Dickinson & Co. 5, Bio-Rad Laboratories, Inc.-Class A Bio-Reference Labs, Inc BioCryst Pharmaceuticals, Inc. 1, Biogen Idec, Inc. 6, BioMarin Pharmaceutical, Inc. 3, BioScrip, Inc. 1, Biospecifics Technologies Corp Biotime, Inc Boston Scientific Corp. 36, Bristol-Myers Squibb Co. 42,395 1,174 1,377 Bruker Corp. 2, Cadence Pharmaceuticals, Inc. 1, Cambrex Corp Cantel Medical Corp Capital Senior Living Corp Cardinal Health, Inc. 8, Cardiovascular Systems, Inc CareFusion Corp. 5, Catamaran Corp. 5, Celgene Corp. 11, Celldex Therapeutics, Inc. 2, Centene Corp. 1, Cepheid, Inc. 1, Cerner Corp. 3, Cerus Corp. 1, Charles River Laboratories International, Inc. 1, Chemed Corp Chindex International, Inc Cigna Corp. 7, Clovis Oncology, Inc Codexis, Inc Community Health Systems, Inc. 2, Computer Programs & Systems, Inc Conceptus, Inc CONMED Corp Cooper Cos., Inc. 1, Corcept Therapeutics, Inc. 1, Corvel Corp Covance, Inc. 1, Coventry Health Care, Inc. 3, Covidien PLC 12, CR Bard, Inc. 2, Cross Country Healthcare, Inc CryoLife, Inc Cubist Pharmaceuticals, Inc. 1, The accompanying notes are an integral part of the financial statements. 73

74 BlackRock CDN Russell 3000 Index Non-Taxable Fund Par (000s)/ Health Care (continued) Curis, Inc. 1, Cyberonics, Inc Cynosure, Inc Cytori Therapeutics, Inc. 1, DaVita, Inc. 2, Dendreon Corp. 3, DENTSPLY International, Inc. 3, Depomed, Inc. 1, DexCom, Inc. 1, Dyax Corp. 3, Dynavax Technologies Corp. 4, Edwards Lifesciences Corp. 2, Eli Lilly & Co. 25, ,262 Emergent Biosolutions, Inc Emeritus Corp Endo Pharmaceuticals, Inc. 2, Endocyte, Inc Endologix, Inc. 1, Ensign Group, Inc Enzon Pharmaceuticals, Inc epocrates, Inc Exact Sciences Corp. 1, Exactech, Inc ExamWorks Group, Inc. 1, Exelixis, Inc. 4, Express Scripts Holding Co. 20,265 1,146 1,089 Five Star Quality Care, Inc. 1, Fluidigm Corp Forest Laboratories, Inc. 6, Furiex Pharmaceuticals, Inc Genomic Health, Inc Gentiva Health Services, Inc Geron Corp. 3, Gilead Sciences, Inc. 19, ,393 Globus Medical, Inc Greatbatch, Inc Greenway Medical Technologies Haemonetics Corp. 1, Halozyme Therapeutics, Inc. 2, Hanger Orthopedic Group, Inc Hansen Medical, Inc HCA, Inc. 4, Health Management Associates, Inc. 6, Health Net, Inc. 2, Healthsouth Corp. 2, HealthStream, Inc Healthways, Inc HeartWare International, Inc Par (000s)/ Health Care (continued) Henry Schein, Inc. 2, Hi-Tech Pharmacal Co., Inc Hill-Rom, Inc. 1, HMS Corp. 2, Hologic, Inc. 6, Hospira, Inc. 4, Humana, Inc. 4, ICU Medical, Inc Idenix Pharmaceuticals, Inc. 2, IDEXX Laboratories, Inc. 1, Illumina, Inc. 3, Immunocellular Therapeutics, Ltd. 1, Immunogen, Inc. 2, Immunomedics, Inc. 2, Impax Laboratories, Inc. 1, Incyte Corp., Ltd. 2, Infinity Pharmaceuticals, Inc Insulet Corp. 1, Integra LifeSciences Corp InterMune, Inc. 1, Intuitive Surgical, Inc. 1, Invacare Corp IPC The Hospitalist Co., Inc Ironwood Pharmaceuticals, Inc. 1, Isis Pharmaceuticals, Inc. 2, Jazz Pharmaceuticals PLC 1, Johnson & Johnson 68,914 4,411 4,810 Keryx Biopharmaceuticals, Inc. 2, Kindred Healthcare, Inc. 1, Laboratory Corp. of America 2, Landauer, Inc Lexicon Pharmaceuticals, Inc. 5, LHC Group, Inc Life Technologies Corp. 4, LifePoint Hospitals, Inc. 1, Ligand Pharmaceuticals, Inc.- Class B Luminex Corp. 1, Magellan Health Services, Inc MAKO Surgical Corp MannKind Corp. 3, MAP Pharmaceuticals, Inc Masimo Corp. 1, Maxygen, Inc McKesson Corp. 5, MedAssets, Inc. 1, Medicines Co. 1, Medidata Solutions, Inc The accompanying notes are an integral part of the financial statements. 74

75 BlackRock CDN Russell 3000 Index Non-Taxable Fund Par (000s)/ Health Care (continued) Medivation, Inc. 1, Mednax, Inc. 1, Medtronic, Inc. 26, ,064 Merge Healthcare, Inc. 1, Meridian Bioscience, Inc. 1, Merit Medical Systems, Inc. 1, Mettler-Toledo International, Inc Molina Healthcare, Inc Momenta Pharmaceuticals, Inc. 1, MWI Veterinary Supply, Inc Mylan, Inc. 10, Myriad Genetics, Inc. 2, National Healthcare Corp Natus Medical, Inc Navidea Biopharmaceuticals, Inc. 2, Nektar Therapeutics 2, Neogen Corp Neurocrine Biosciences, Inc. 1, Newlink Genetics Corp Novavax, Inc. 3, NPS Pharmaceuticals, Inc. 2, NuVasive, Inc. 1, NxStage Medical, Inc. 1, Obagi Medical Products, Inc Omeros Corp Omnicare, Inc. 2, Omnicell, Inc OncoGenex Pharmaceutical, Inc Oncothyreon, Inc. 1, Onyx Pharmaceuticals, Inc. 1, Opko Health, Inc. 2, Optimer Pharmaceuticals, Inc. 1, OraSure Technologies, Inc. 1, Orexigen Therapeutics, Inc. 1, Orthofix International Osiris Therapeutics, Inc Owens & Minor, Inc. 1, Pacific Biosciences of California, Inc. 1, Pacira Pharmaceuticals, Inc Pain Therapeutics, Inc Palomar Medical Technologies, Inc Parexel International Corp. 1, Patterson Cos., Inc. 2, PDL BioPharma, Inc. 3, PerkinElmer, Inc. 2, Perrigo Co. 2, Pfizer, Inc. 187,934 3,455 4,695 Pharmacyclics, Inc. 1, Par (000s)/ Health Care (continued) PharMerica Corp Photomedex, Inc Pozen, Inc Progenics Pharmaceuticals, Inc Providence Service Corp PSS World Medical, Inc. 1, QIAGEN 5, Quality Systems, Inc. 1, Quest Diagnostics, Inc. 3, Questcor Pharmaceuticals, Inc. 1, Quidel Corp Raptor Pharmaceutical Corp. 1, Regeneron Pharmaceuticals, Inc. 1, Repligen Corp. 1, Repros Therapeutics, Inc Resmed, Inc. 3, Rigel Pharmaceuticals, Inc. 1, Rockwell Medical Technologies, Inc RTI Biologics, Inc. 1, Sagent Pharmaceuticals, Inc Salix Pharmaceuticals, Ltd. 1, Sangamo Biosciences, Inc. 1, Santarus, Inc. 1, Sciclone Pharmaceuticals, Inc. 1, Seattle Genetics, Inc. 2, Select Medical Corp Sequenom, Inc. 3, Sirona Dental Systems, Inc. 1, Skilled Healthcare Group, Inc.- Class A Solta Medical, Inc. 1, Spectranetics Corp Spectrum Pharmaceuticals, Inc. 1, St. Jude Medical, Inc. 7, Staar Surgical Co STERIS Corp. 1, Stryker Corp. 7, Sunesis Pharmaceuticals, Inc Sunrise Senior Living, Inc. 1, SurModics, Inc Symmetry Medical, Inc Synageva Biopharma Corp Synergy Pharmaceuticals, Inc. 1, Synta Pharmaceuticals Corp. 1, Targacept, Inc Team Health, Inc Techne Corp Teleflex, Inc. 1, The accompanying notes are an integral part of the financial statements. 75

76 BlackRock CDN Russell 3000 Index Non-Taxable Fund Par (000s)/ Health Care (continued) Tenet Healthcare Corp. 2, Theravance, Inc. 1, Thermo Fisher Scientific, Inc. 9, Thoratec Corp. 1, Threshold Pharmaceuticals, Inc. 1, Tornier BV Triple-S Management Corp Trius Therapeutics, Inc. 1, U.S. Physical Therapy, Inc Unilife Corp. 1, United Therapeutics Corp. 1, UnitedHealth Group, Inc. 26,055 1,080 1,407 Universal Health Services-Class B 2, Vanda Pharmaceuticals, Inc Vanguard Health Systems, Inc. 1, Varian Medical Systems, Inc. 2, Vascular Solutions, Inc VCA Antech, Inc. 2, Ventrus Biosciences, Inc Vertex Pharmaceuticals, Inc. 5, Vical, Inc. 2, Viropharma, Inc. 1, Vivus, Inc. 2, Vocera Communications, Inc Volcano Corp. 1, Warner Chilcott PLC 4, Waters Corp. 2, Watson Pharmaceuticals, Inc. 3, WellCare Health Plans, Inc. 1, WellPoint, Inc. 7, West Pharmaceutical Services, Inc Wright Medical Group, Inc. 1, XenoPort, Inc. 1, XOMA Corp. 1, Young Innovations, Inc Zimmer, Inc. 4, ZIOPHARM Oncology, Inc. 1, ,006 43,914 Industrials 11.2% 3D Systems Corp. 1, M Co. 17,418 1,525 1,610 A.T. Cross Co.-Class A AAON, Inc AAR Corp ABM Industries, Inc. 1, Acacia Research 1, ACCO Brands Corp. 2, Accuride Corp. 1, Par (000s)/ Industrials (continued) ACE Aviation, Inc. 8, Aceto Corp Acorn Energy, Inc Actuant Corp.-Class A 1, Acuity Brands, Inc. 1, ADT Corp. 5, Advisory Board Co Aegion Corp. 1, Aerovironment, Inc AGCO Corp. 2, Air Lease Corp. 1, Air Transport Services Group, Inc. 1, Aircastle, Ltd. 1, Alamo Group, Inc Alaska Air Group, Inc. 1, Albany International Corp.-Class A Allegiant Travel Co Alliant Techsystems, Inc Altra, Inc Amerco, Inc Ameresco, Inc.-Class A American Railcar Industries, Inc American Science & Engineering, Inc American Superconductor Corp American Woodmark Corp AMETEK, Inc. 6, Ampco-Pittsburgh Corp AO Smith Corp Apogee Ent., Inc Applied Industrial Technologies, Inc. 1, Argan, Inc Arkansas Best Corp Astec Industries, Inc Astronics Corp Atlas Air Worldwide, Inc Avery Dennison Corp. 2, Avis Budget Group, Inc. 2, AZZ, Inc Babcock & Wilcox Co. 2, Badger Meter, Inc Barnes Group, Inc. 1, Barrett Business Services, Inc BE Aerospace, Inc. 2, Beacon Roofing Supply, Inc. 1, Belden, Inc. 1, Blount International, Inc. 1, Boeing Co. 18,829 1,281 1,413 Brady Corp.-Class A 1, The accompanying notes are an integral part of the financial statements. 76

77 BlackRock CDN Russell 3000 Index Non-Taxable Fund Par (000s)/ Industrials (continued) Briggs & Stratton Corp. 1, Builders Firstsource, Inc. 1, C.H. Robinson Worldwide, Inc. 4, Cabot Corp. 1, CAI International, Inc Capstone Turbine Corp. 6, Carlisle Cos., Inc. 1, Cascade Corp Casella Waste Systems, Inc. 2, Caterpillar, Inc. 16,392 1,474 1,463 CBIZ, Inc CDI Corp Celadon Group, Inc Cenveo, Inc. 1, Chart Industries, Inc Chicago Bridge & Iron Co. 2, Cintas Corp. 2, CIRCOR International, Inc CLARCOR, Inc. 1, Clean Harbors, Inc. 1, CNH Global Colfax Corp. 1, Columbus McKinnon Corp Comfort Systems USA, Inc. 1, Commercial Vehicle Group, Inc Con-Way, Inc. 1, Consolidated Graphics, Inc Continental Airlines-Class B 1, Copa SA-Class A Copart, Inc. 2, Corporate Executive Board Co Corrections Corp. of America 2, CoStar Group, Inc Covanta Holding Corp. 2, CRA International, Inc Crane Co. 1, Crown, Inc. 3, CSX Corp. 26, Cubic Corp Cummins, Inc. 4, Curtiss-Wright Corp. 1, Danaher Corp. 14, Deere & Co. 9, Delta Air Lines, Inc. 21, Deluxe Corp. 1, DigitalGlobe, Inc Dolan Co Donaldson Co., Inc. 3, Par (000s)/ Industrials (continued) Douglas Dynamics, Inc Dover Corp. 4, Dresser-Rand Group, Inc. 1, Dun & Bradstreet Corp. 1, DXP Ent., Inc Dycom Industries, Inc Dynamic Materials Corp Eaton Corp. PLC 11, Edgen Group, Inc EMCOR Group, Inc. 1, Emerson Electric Co. 18,450 1, Encore Wire Corp Energy Recovery, Inc EnergySolutions, Inc. 2, EnerNOC, Inc EnerSys 1, Engility, Inc Ennis, Inc EnPro Industries, Inc Equifax, Inc. 3, ESCO Technologies, Inc Esterline Technologies Corp Exelis, Inc. 4, Expeditors International of Washington, Inc. 5, Exponent, Inc Fastenal Co. 7, Federal Signal Corp. 1, FedEx Corp. 7, Flow International Corp. 1, Flowserve Corp. 1, Fluor Corp. 4, Forward Air Corp Franklin Covey Co Franklin Electric Co., Inc FreightCar America, Inc FTI Consulting, Inc. 1, FuelCell Energy, Inc. 4, Furmanite Corp. 1, G&K Services, Inc.-Class A Gardner Denver, Inc. 1, GATX Corp. 1, Genco Shipping & Trading, Ltd GenCorp, Inc. 1, Generac, Inc General Dynamics Corp. 7, General Electric Co. 266,021 4,634 5,557 Genesee & Wyoming, Inc.-Class A 1, The accompanying notes are an integral part of the financial statements. 77

78 BlackRock CDN Russell 3000 Index Non-Taxable Fund Par (000s)/ Industrials (continued) Geo Group, Inc. 1, GeoEye, Inc Gibraltar Industries, Inc Global Power Equipment Group, Inc Gorman-Rupp Co GP Strategies Corp Graco, Inc. 1, GrafTech International, Ltd. 2, Graham Corp Granite Construction, Inc. 1, Great Lakes Dredge & Dock Corp. 1, Greenbrier Cos., Inc Griffon Corp GS Yuasa Corp. 1, H&E Equipment Services, Inc Harsco Corp. 1, Hawaiian, Inc. 1, Healthcare Services Group, Inc. 1, Heartland Express, Inc. 1, HEICO Corp. 1, Heidrick & Struggles International, Inc Heritage-Crystal Clean, Inc Herman Miller, Inc. 1, Hexcel Corp. 2, Higher One, Inc Hill International, Inc HNI Corp. 1, Honeywell International, Inc. 19,580 1,041 1,238 Houston Wire & Cable Co HUB Group, Inc.-Class A Hudson Global, Inc. 1, Huntington Ingalls Industries, Inc. 1, Hurco Cos., Inc Huron Consulting Group, Inc Hyster-yale Materials Handling, Inc ICF International, Inc IDEX Corp. 2, IHS, Inc.-Class A 1, II-VI, Inc. 1, Illinois Tool Works, Inc. 10, Ingersoll-Rand PLC 7, Innerworkings, Inc Insperity, Inc Insteel Industries, Inc Interface, Inc. 1, Intersections, Inc Iron Mountain, Inc. 4, ITT Corp. 2, Par (000s)/ Industrials (continued) Jacobs Engineering Group, Inc. 3, JB Hunt Transport Services, Inc. 2, Jetblue Airways 5, John Bean Technologies Corp Joy Global, Inc. 2, Kadant, Inc Kaman Corp Kansas City Southern 2, KAR Auction Services, Inc Kaydon Corp KBR, Inc. 3, Kelly Services, Inc.-Class A Kennametal, Inc. 1, KEYW Holding Corp Kforce, Inc Kimball International, Inc Knight Transportation, Inc. 1, Knoll, Inc. 1, Korn/Ferry International 1, Kratos Defense & Solutions, Inc. 1, L-3 Communications, Inc. 2, Landstar System, Inc. 1, Layne Christensen Co LB Foster Co Lear Corp. 2, Lennox International, Inc. 1, Lincoln Electric, Inc. 2, Lindsay Corp LMI Aerospace, Inc Lockheed Martin Corp. 6, LSI Industries, Inc Lydall, Inc Manitowoc Co. (The), Inc. 3, Manpower, Inc. 1, Marten Transport, Ltd Masco Corp. 9, MasTec, Inc. 1, Matson, Inc. 1, McGrath Rentcorp Meritor, Inc. 2, Metalico, Inc. 1, Michael Baker Corp Middleby Corp Miller Industries, Inc Mine Safety Appliances Co Mistras Group, Inc Mobile Mini, Inc. 1, The accompanying notes are an integral part of the financial statements. 78

79 BlackRock CDN Russell 3000 Index Non-Taxable Fund Par (000s)/ Industrials (continued) Monster Worldwide, Inc. 3, Moog, Inc.-Class A 1, MRC Global, Inc MSC Industrial Direct Co. 1, Mueller Industries, Inc Mueller Water Products, Inc. 4, Multi-Color Corp MYR Group, Inc NACCO Industries, Inc.-Class A National Presto Industries, Inc Navigant Consulting, Inc. 1, Navistar International Corp. 1, NCI Building Systems, Inc Nielsen 3, NN, Inc Nordson Corp. 1, Norfolk Southern Corp. 8, Nortek, Inc Northrop Grumman Corp. 6, Northwest Pipe Co Odyssey Marine Exploration, Inc. 1, Old Dominion Freight Line, Inc. 1, On Assignment, Inc. 1, Orbital Sciences Corp. 1, Orion Marine Group, Inc Paccar, Inc. 8, Pacer International, Inc. 1, Pall Corp. 2, Park-Ohio Corp Parker Hannifin Corp. 3, Patriot Transportation Holding, Inc Pentair, Ltd. 5, Pike Electric Corp Pilgrim s Pride Corp. 1, Pitney Bowes, Inc. 4, PMFG, Inc Polypore International, Inc. 1, Powell Industries, Inc Precision Castparts Corp. 3, Preformed Line Products Co Primoris Services Corp Proto Labs, Inc Quad/Graphics, Inc Quality Distribution, Inc Quanex Building Products Corp Quanta Services, Inc. 5, Rand Logistics, Inc Raven Industries, Inc Par (000s)/ Industrials (continued) Raytheon Co. 8, RBC Bearings, Inc Regal-Beloit Corp. 1, Republic Airways, Inc. 1, Republic Services, Inc. 7, Resources Connection, Inc. 1, Rexnord Corp Roadrunner Transportation Systems, Inc Robbins & Myers, Inc Robert Half International, Inc. 3, Rockwell Automation, Inc. 3, Rockwell Collins, Inc. 3, Rollins, Inc. 1, Roper Industries, Inc. 2, RPM International, Inc. 3, RPX Corp RR Donnelley & Sons Co. 4, Rush Ent., Inc.-Class A Ryder System, Inc. 1, Saia, Inc Sauer-Danfoss, Inc Schawk, Inc Seaboard Corp SeaCube Container Leasing, Ltd Shaw Group, Inc. 1, Simpson Manufacturing Co., Inc. 1, Skywest, Inc. 1, Snap-On, Inc. 1, Southwest Airlines Co. 19, Spirit Aerosystems, Inc.- Class A 2, Spirit Airlines Inc. 1, SPX Corp. 1, Standard Parking Corp Standex International Corp Stanley Black & Decker, Inc. 4, Steelcase, Inc.-Class A 1, Stericycle, Inc. 2, Sterling Construction Co., Inc Sun Hydraulics Corp Swift Transportation Co. 2, Swisher Hygiene, Inc. 2, SYKES Ent., Inc TAL International Group, Inc Taser International, Inc. 1, Team, Inc Teledyne Technologies, Inc Tennant Co The accompanying notes are an integral part of the financial statements. 79

80 BlackRock CDN Russell 3000 Index Non-Taxable Fund Par (000s)/ Industrials (continued) Terex Corp. 2, Tetra Tech, Inc. 1, Textainer Group, Ltd Textron, Inc. 7, Thermon Group, Inc Timken Co. (The) 2, Titan International, Inc. 1, Titan Machinery, Inc TMS International Corp Toro Co. 1, TransDigm Group, Inc. 1, TRC Cos., Inc Tredegar Corp Trex Co., Inc Trimas Corp Trinity Industries, Inc. 1, Triumph Group, Inc. 1, TrueBlue, Inc. 1, TRW Automotive Corp. 2, Tutor Perini Corp Twin Disc, Inc U.S. Airways Group, Inc. 4, U.S. Ecology, Inc Unifirst Corp Union Pacific Corp. 11,936 1,169 1,494 United Continental, Inc. 8, United Parcel Service, Inc.-Class B 18,154 1,322 1,333 United Rentals, Inc. 2, United Stationers, Inc. 1, United Technologies Corp. 22,892 1,812 1,869 Universal Forest Products, Inc URS Corp. 1, USG Corp. 1, UTI Worldwide, Inc. 2, Valmont Industries, Inc Verisk Analytics, Inc.-Class A 3, Viad Corp Vicor Corp VSE Corp W.W. Grainger, Inc. 1, Wabash National Corp. 1, WABCO, Inc. 1, Wabtec Corp. 1, Waste Connections, Inc. 3, Waste Management, Inc. 11, Watsco, Inc Watts Water Technologies, Inc Werner Enterprises, Inc. 1, WESCO Aircraft, Inc Par (000s)/ Industrials (continued) WESCO International, Inc. 1, Woodward Governor Co. 1, XPO Logistics, Inc Xylem, Inc. 4, Zipcar, Inc. 1, ,612 44,673 Information Technology 17.2% ACI Worldwide, Inc Acme Packet, Inc. 1, Active Network, Inc Activision Blizzard, Inc. 10, Actuate Corp. 1, Acxiom Corp. 1, Adobe Systems, Inc. 12, ADTRAN, Inc. 1, Advanced Energy Industries, Inc Advanced Micro Devices, Inc. 15, Advent Software, Inc Aecom Technology Corp. 2, Aeroflex Holding Corp Agilent Technologies, Inc. 8, Agilysys, Inc Akamai Technologies, Inc. 4, Alliance Data Systems Corp. 1, Alpha and Omega Semiconductor, Ltd Altera Corp. 8, Amdocs, Ltd. 4, American Software, Inc.-Class A Amkor Technology, Inc. 1, Amphenol Corp.-Class A 4, Anadigics, Inc. 1, Analog Devices, Inc. 7, Anaren, Inc Angie s List, Inc. 1, Anixter International, Inc Annaly Capital Management, Inc. 24, ANSYS, Inc. 2, AOL, Inc. 2, Apple, Inc. 23,472 8,844 12,457 Applied Materials, Inc. 31, Applied Micro Circuits Corp. 1, Arris Group, Inc. 2, Arrow Electronics, Inc. 2, Aruba Networks, Inc. 2, Aspen Technology, Inc. 2, Atmel Corp. 10, ATMI, Inc Audience, Inc The accompanying notes are an integral part of the financial statements. 80

81 BlackRock CDN Russell 3000 Index Non-Taxable Fund Par (000s)/ Information Technology (continued) Automatic Data Processing, Inc. 12, Avago Technologies, Ltd. 6, Aviat Networks, Inc. 1, Avid Technology, Inc Avnet, Inc. 3, AVX Corp. 1, Axcelis Technologies, Inc. 3, AXT, Inc Bankrate, Inc. 1, Bazaarvoice, Inc Bel Fuse, Inc.-Class B Benchmark Electronics, Inc. 1, Black Box Corp Blackbaud, Inc. 1, Blucora, Inc BMC Software, Inc. 4, Boingo Wireless, Inc Booz Allen Hamilton Holding Corp Bottomline Technologies, Inc Broadcom Corp.-Class A 13, BroadSoft, Inc Brocade Communications Sys 11, Brooks Automation, Inc. 1, CA, Inc. 8, Cabot Microelectronics Corp CACI International, Inc.-Class A Cadence Design Sys, Inc. 6, Calamp Corp Calix, Inc. 1, Callidus Software, Inc. 1, Cardtronics, Inc. 1, Cass Information Systems, Inc Cavum, Inc. 1, Ceva, Inc Checkpoint Systems, Inc. 1, Ciber, Inc. 2, Ciena Corp. 2, Cirrus Logic, Inc. 1, Cisco Systems, Inc. 134,493 2,612 2,631 Citrix Systems, Inc. 4, Cognex Corp. 1, Cognizant Technology Solutions Corp.-Class A 7, Coherent, Inc Cohu, Inc CommVault Systems, Inc. 1, Computer Sciences Corp. 3, Computer Task Group, Inc Compuware Corp. 5, Par (000s)/ Information Technology (continued) comscore, Inc Comtech Telecommunications Corp Comverse Technology, Inc. 5, Comverse, Inc Concur Technologies, Inc. 1, Constant Contact, Inc Convergys Corp. 2, CoreLogic, Inc. 2, Cornerstone OnDemand, Inc Corning, Inc. 38, Cray, Inc Cree, Inc. 2, CSG Systems International, Inc CTS Corp Cymer, Inc Cypress Semiconductor Corp. 3, Daktronics, Inc Datalink Corp DealerTrack, Inc. 1, Dell, Inc. 37, Demand Media, Inc Demandware, Inc Dice, Inc. 1, Diebold, Inc. 1, Digi International, Inc Digimarc Corp Digital River, Inc Diodes, Inc Dolby Laboratories, Inc.-Class A 1, DSP Group, Inc DST Systems, Inc DTS, Inc Earthlink, Inc. 2, ebay, Inc. 29, ,480 Ebix, Inc Echelon Corp. 1, Echo Global Logistics, Inc Electro Rent Corp Electro Scientific Industries, Inc Electronics for Imaging, Inc. 1, Ellie Mae, Inc Eloqua, Inc EMC Corp., Massachusetts 52,726 1,220 1,329 Emulex Corp. 2, Entegris, Inc. 3, Entropic Communications, Inc. 2, Envestnet, Inc EPIQ Systems, Inc eplus, Inc The accompanying notes are an integral part of the financial statements. 81

82 BlackRock CDN Russell 3000 Index Non-Taxable Fund Par (000s)/ Information Technology (continued) Equinix, Inc. 1, Euronet Worldwide, Inc. 1, Exacttarget, Inc Exar Corp. 1, ExlService, Inc Extreme Networks 1, F5 Networks, Inc. 2, Fabrinet Facebook, Inc. 10, Isaac Corp child Semiconductor International, Inc. 3, FalconStor Software, Inc. 1, FARO Technologies, Inc FEI Co Fidelity National Information Services, Inc. 6, Finisar Corp. 2, First Solar, Inc. 1, Fiserv, Inc. 3, FleetCor Technologies, Inc. 1, Flir Systems, Inc. 3, Formfactor, Inc. 1, Forrester Research, Inc Fortinet, Inc. 3, Freescale Semiconductor, Ltd. 1, Fusion-io, Inc. 1, Gartner, Inc. 2, Genpact, Ltd. 3, Gerber Scientific, Inc Globecomm Systems, Inc Glu Mobile, Inc. 1, Google, Inc.-Class A 6,502 3,842 4,592 GSI Group, Inc GSI Technology, Inc GT Advanced Technologies, Inc. 3, Guidance Software, Inc Guidewire Software, Inc Hackett Group, Inc Harmonic, Inc. 3, Harris Corp. 2, Heartland Payment Systems, Inc Hewlett-Packard Co. 49,743 1, Hittite Microwave Corp Homeaway, Inc IAC/InterActiveCorp. 2, igate Corp Imation Corp Immersion Corp Par (000s)/ Information Technology (continued) Imperva, Inc Infinera Corp. 2, Infoblox, Inc Informatica Corp. 2, Ingram Micro, Inc.-Class A 3, Innodata, Inc Inphi Corp Insight Ent., Inc. 1, Integrated Device Tech, Inc. 3, Integrated Silicon Solution, Inc Intel Corp. 126,283 2,828 2,594 Interactive Intelligence Group InterDigital, Inc. 1, Intermec, Inc. 1, Internap Network Services Corp. 1, International Business Machines Corp. 27,352 4,308 5,217 International Rectifier Corp. 1, Intersil Corp.-Class A 3, Intevac, Inc IntraLinks, Inc. 1, Intuit, Inc. 7, Invensense, Inc IPG Photonics Corp Itron, Inc Ixia 1, IXYS Corp J2 Global, Inc. 1, Jabil Circuit, Inc. 4, Jack Henry & Associates, Inc. 2, JDS Uniphase Corp. 5, Jive Software, Inc Juniper Networks, Inc. 13, Kemet Corp. 1, Keynote Systems, Inc KLA-Tencor Corp. 4, Knot, Inc. 1, Kopin Corp. 1, KVH Industries, Inc Lam Research Corp. 4, Lattice Semiconductor Corp. 3, Lexmark International, Inc. 1, Liberty Interactive Corp.-Series A 14, Limelight Networks, Inc. 1, Linear Technology Corp. 5, LinkedIn Corp. 1, Lionbridge Technologies, Inc. 1, Liquidity Services, Inc Littelfuse, Inc The accompanying notes are an integral part of the financial statements. 82

83 BlackRock CDN Russell 3000 Index Non-Taxable Fund Par (000s)/ Information Technology (continued) LivePerson, Inc. 1, LogMeIn, Inc Loral Space & Communications, Inc LSI Corp. 14, LTX-Credence Corp Manhattan Associates, Inc Mantech International Corp Marchex, Inc.-Class B Marvell Technology Group, Ltd. 11, MasterCard, Inc.-Class A 2, ,333 Maxim Integrated Products, Inc. 7, MAXIMUS, Inc Maxwell Technologies, Inc Measurement Specialties, Inc MEMC Electronic Materials, Inc. 5, Mentor Graphics Corp. 2, Mercury Computer Systems, Inc Methode Electronics, Inc. 1, Micrel, Inc. 1, Microchip Technology, Inc. 4, Micron Technology, Inc. 24, MICROS Systems, Inc. 1, Microsemi Corp. 2, Microsoft Corp. 189,046 5,137 5,030 MicroStrategy, Inc.-Class A Millennial Media, Inc Mindspeed Technologies, Inc MIPS Technologies, Inc. 1, MKS Instruments, Inc. 1, ModusLink Global Solutions, Inc. 1, Molex, Inc. 3, Moneygram International, Inc Monolithic Power Systems, Inc Monotype Imaging, Inc MoSys, Inc. 1, Motorola Solutions, Inc. 7, Move, Inc. 1, MTS Systems Corp Multi-Fineline Electronix, Inc Nanometrics, Inc National Instruments Corp. 2, NCR Corp. 3, Neonode, Inc NetApp, Inc. 9, Netgear, Inc Netscout Systems, Inc NetSuite, Inc NeuStar, Inc.-Class A 1, Par (000s)/ Information Technology (continued) Newport Corp. 1, NIC, Inc. 1, NII, Inc.-Class B 4, Nuance Communications, Inc. 6, NVE Corp NVIDIA Corp. 15, Oclaro, Inc. 2, OCZ Technology Group, Inc. 1, Omnivision Technologies, Inc. 1, ON Semiconductor Corp. 11, OpenTable, Inc Oplink Communications, Inc Oracle Corp. 95,985 2,787 3,184 OSI Systems, Inc Palo Alto Networks, Inc Parametric Technology Corp. 2, Park Electrochemical Corp Parkervision, Inc. 2, Paychex, Inc. 8, PDF Solutions, Inc Pegasystems, Inc Perficient, Inc Pericom Semiconductor Corp Photronics, Inc. 1, Plantronics, Inc. 1, Plexus Corp PLX Technology, Inc. 1, PMC-Sierra, Inc. 5, Polycom, Inc. 4, Power Integrations, Inc Power-One, Inc. 1, PRGX Global, Inc Procera Networks, Inc Progress Software Corp. 1, PROS, Inc QLIK Technologies, Inc. 2, QLogic Corp. 2, QUALCOMM, Inc. 43,070 2,209 2,660 Quantum Corp. 6, QuinStreet, Inc Rackspace Hosting, Inc. 2, Radisys Corp Rambus, Inc. 2, RealD, Inc Realnetworks, Inc RealPage, Inc Red Hat, Inc. 4, Responsys, Inc The accompanying notes are an integral part of the financial statements. 83

84 BlackRock CDN Russell 3000 Index Non-Taxable Fund Par (000s)/ Information Technology (continued) RF Micro Devices, Inc. 6, Richardson Electronics, Ltd Riverbed Technology, Inc. 4, Rofin-Sinar Technologies, Inc Rogers Corp Rosetta Stone, Inc Rovi Corp. 2, Rubicon Technology, Inc Rudolph Technologies, Inc Saba Software, Inc SAIC, Inc. 6, Salesforce.Com, Inc. 3, SanDisk Corp. 6, Sanmina Corp. 2, Sapient Corp. 3, Scansource, Inc SciQuest, Inc Seachange International, Inc Semtech Corp. 1, Servicenow, Inc ServiceSource International, Inc. 1, ShoreTel, Inc. 1, Sigma Designs, Inc Silicon Graphics International Corp Silicon Image, Inc. 2, Skyworks Solutions, Inc. 4, SolarWinds, Inc. 1, Solera, Inc. 1, Sonus Networks, Inc. 4, Sourcefire, Inc Spansion, Inc.-Class A 1, Splunk, Inc SPS Commerce, Inc SS&C Technologies, Inc Stamps.com, Inc STEC, Inc Stratasys, Ltd Sunpower Corp. 1, Super Micro Computer, Inc Supertex, Inc Support.com, Inc Sycamore Networks, Inc Symantec Corp. 18, Symmetricom, Inc. 1, Synaptics, Inc Synchronoss Technologies, Inc SYNNEX Corp Synopsys, Inc. 3, Syntel, Inc Par (000s)/ Information Technology (continued) Take-Two Interactive Software, Inc. 2, Tangoe, Inc Tech Data Corp TeleNav, Inc TeleTech, Inc Tellabs, Inc. 9, Telular Corp Teradata Corp. 4, Teradyne, Inc. 4, Tessera Technologies, Inc. 1, Texas Instruments, Inc. 28, TIBCO Software, Inc. 4, TiVo, Inc. 3, TNS, Inc Total System Services, Inc. 3, Travelzoo, Inc Trimble Navigation, Ltd. 3, TriQuint Semiconductor, Inc. 4, TTM Technologies, Inc. 1, Tyler Technologies, Inc Ubiquiti Networks, Inc Ultimate Software Group, Inc Ultra Clean Ultratech, Inc Unisys Corp. 1, United Online, Inc. 2, Universal Display Corp Unwired Planet, Inc. 2, ValueClick, Inc. 1, Vantiv, Inc.-Class A VASCO Data International, Inc Veeco Instruments, Inc VeriFone Systems, Inc. 2, Verint Systems, Inc VeriSign, Inc. 4, Viasat, Inc VirnetX Holding Corp. 1, Virtusa Corp Vishay Intertechnology, Inc. 3, Vishay Precision Group, Inc VistaPrint VMware, Inc.-Class A 2, Vocus, Inc Volterra Semiconductor Corp Web.com Group, Inc. 1, WebMD Health Corp. 1, Websense, Inc Westell Technologies, Inc. 1, The accompanying notes are an integral part of the financial statements. 84

85 BlackRock CDN Russell 3000 Index Non-Taxable Fund Par (000s)/ Information Technology (continued) Western Digital Corp. 5, Western Union Co. 15, WEX, Inc Xerox Corp. 33, Xilinx, Inc. 6, Yahoo!, Inc. 30, Yelp, Inc Zebra Technologies Corp.-Class A 1, Zillow, Inc Zix Corp. 2, Zygo Corp Zynga, Inc.-Class A 3, ,863 68,725 Materials 4.1% A Schulman, Inc ADA-ES, Inc AEP Industries, Inc Air Products & Chemicals, Inc. 5, Airgas, Inc. 1, AK Steel Holding Corp. 4, Albemarle Corp. 2, Alcoa, Inc. 26, Allegheny Technologies, Inc. 2, Allied Nevada Gold Corp. 2, AM Castle & Co AMCOL International Corp American Vanguard Corp Aptargroup, Inc. 1, Arabian American Development Co Arch Coal, Inc. 5, Armstrong World Industries Ashland, Inc. 1, Balchem Corp Ball Corp. 3, Bemis Co. 2, Boise, Inc. 2, Buckeye Technologies, Inc Calgon Carbon Corp. 1, Carpenter Technology Corp. 1, Celanese Corp.-Series A 3, Century Aluminum Co. 1, CF Industries, Inc. 1, Chemtura Corp. 2, Clearwater Paper Corp Cliffs Natural Resources, Inc. 3, Coeur d Alene Mines Corp. 2, Commercial Metals Co. 2, Compass Minerals International, Inc Par (000s)/ Materials (continued) Comstock Resources, Inc. 1, Cytec Industries, Inc. 1, Deltic Timber Corp Domtar Corp Dow Chemical Co. (The) 30, Eagle Materials, Inc. 1, Eastman Chemical Co. 3, Ecolab, Inc. 6, EI Du Pont de Nemours & Co. 23,561 1,157 1,055 Ferro Corp. 2, Flotek Industries, Inc. 1, FMC Corp. 3, Freeport-McMoran Copper & Gold, Inc. 23,853 1, FutureFuel Corp General Moly, Inc. 1, Georgia Gulf Corp Globe Specialty Metals, Inc. 1, Gold Reserve, Inc. 1, Gold Resource Corp Golden Minerals Co Golden Star Resources, Ltd. 6, Graphic Packaging Holding Co. 3, Greif, Inc.-Class A Hawkins, Inc Haynes International, Inc HB Fuller Co. 1, Headwaters, Inc. 1, Hecla Mining Co. 7, Horsehead Holding Corp Hubbell, Inc.-Class B 1, Huntsman Corp. 4, Innophos, Inc Innospec, Inc International Flavors & Fragrances, Inc. 2, International Paper Co. 10, Intrepid Potash, Inc. 1, Kaiser Aluminum Corp KapStone Paper and Packaging Corp. 1, KMG Chemicals, Inc Koppers, Inc Kraton Performance Polymers, Inc Kronos Worldwide, Inc Landec Corp Louisiana-Pacific Corp. 3, LSB Industries, Inc LyondellBasell Industries-Class A 8, The accompanying notes are an integral part of the financial statements. 85

86 BlackRock CDN Russell 3000 Index Non-Taxable Fund Par (000s)/ Materials (continued) Martin Marietta Materials, Inc. 1, Materion Corp Mcewen Mining, Inc. 5, MeadWestvaco Corp. 4, Metals USA Corp Midway Gold Corp. 4, Minerals Technologies, Inc Molycorp, Inc. 1, Monsanto Co. 13, ,264 Mosaic Co. 7, Myers Industries, Inc Neenah Paper, Inc NewMarket Corp Newmont Mining Corp. 12, Noranda Aluminum Holding Corp Nucor Corp. 7, Olin Corp. 1, Olympic Steel, Inc OM Group, Inc Omnova Solutions, Inc. 1, Osisko Mining Corp. 2, Owens-Illinois, Inc. 4, Packaging Corp. of America 2, Paramount Gold and Silver Corp. 3, PH Glatfelter Co. 1, PolyOne Corp. 2, PPG Industries, Inc. 3, Praxair, Inc. 7, Quaker Chemical Corp Reliance Steel & Aluminum Co. 1, Resolute Forest Products 2, Revett Minerals, Inc Rock-Tenn Co.-Class A 1, Rockwood, Inc. 1, Royal Gold, Inc. 1, RTI International Metals, Inc Schnitzer Steel Industries, Inc.- Class A Schweitzer-Mauduit International, Inc Scotts Miracle-Gro Co.-Class A 1, Sealed Air Corp. 4, Sensient Technologies Corp. 1, Sigma-Aldrich Corp. 3, Silgan, Inc. 1, Sonoco Products Co. 2, Southern Copper Corp. 4, Spartech Corp Steel Dynamics, Inc. 5, Stepan Co Par (000s)/ Materials (continued) Stillwater Mining Co. 2, STR, Inc SunCoke Energy, Inc. 1, Tahoe Resources, Inc. 2, Texas Industries, Inc Tyco International, Ltd. 11, U.S. Antimony Corp. 1, U.S. Silica, Inc United States Lime & Minerals, Inc United States Steel Corp. 3, Universal Stainless & Alloy Valspar Corp. 2, Vista Gold Corp. 1, Vulcan Materials Co. 3, Walter Energy, Inc. 1, Wausau Paper Corp. 1, Westlake Chemical Corp Weyerhaeuser Co. 13, Whiting Petroleum Corp. 2, Worthington Industries, Inc. 1, WR Grace & Co. 1, Zagg, Inc Zep, Inc Zoltek Cos., Inc ,012 16,470 Telecommunication Services 2.7% 8x8, Inc. 1, AT&T, Inc. 147,145 4,400 4,940 Atlantic Tele-Network, Inc Cbeyond, Inc CenturyTel, Inc. 15, Cincinnati Bell, Inc. 5, Clearwire Corp.-Class A 8, Cogent Communications Group, Inc. 1, Consolidated Communications, Inc. 1, Crown Castle International Corp. 7, Echostar Corp.-Class A point Communications, Inc Frontier Communications Corp. 24, General Communication, Inc.- Class A Global Payments, Inc. 1, Hawaiian Telcom Holdco, Inc IDT Corp.-Class B incontact, Inc. 1, Iridium Communications, Inc. 1, Leap Wireless International, Inc. 1, The accompanying notes are an integral part of the financial statements. 86

87 BlackRock CDN Russell 3000 Index Non-Taxable Fund Par (000s)/ Telecommunication Services (continued) Level 3 Communications, Inc. 4, Lumos Networks Corp magicjack VocalTec, Ltd MetroPCS Communications, Inc. 7, Neutral Tandem, Inc NTELOS Corp Pendrell Corp. 4, Premiere Global Services, Inc. 1, Primus Telecommunications Group, Inc SBA Communications Corp.-Class A 3, Shenandoah Telecommunications Co Silicon Laboratories, Inc. 1, Sprint Nextel Corp. 75, Telephone & Data Systems, Inc. 2, Towerstream Corp. 1, TW Telecom, Inc. 3, U.S. Cellular Corp USA Mobility, Inc Verizon Communications, Inc. 71,306 2,507 3,071 Vonage Corp. 2, Windstream Corp. 14, ,458 10,750 Utilities 3.4% AES Corp. (The) 16, AGL Resources, Inc. 3, Allete, Inc Alliant Energy Corp. 2, Ameren Corp. 6, American Electric Power Co., Inc. 12, American States Water Co American Water Works Co., Inc. 4, Aqua America, Inc. 3, Artesian Resources Corp.-Class A Atlantic Power Corp. 2, Avista Corp. 1, Black Hills Corp. 1, Cadiz, Inc California Water Service Group 1, Calpine Corp. 10, Centerpoint Energy, Inc. 10, CH Energy Group, Inc Chesapeake Utilities Corp Cleco Corp. 1, CMS Energy Corp. 6, Connecticut Water Service, Inc Consolidated Edison, Inc. 7, Dominion Resources, Inc. 14, Par (000s)/ Utilities (continued) DTE Energy Co. 4, Duke Energy Corp. 17, ,120 Edison International 8, El Paso Electric Co. 1, Empire District Electric Co. 1, Entergy Corp. 4, EQT Corp. 3, Exelon Corp. 21, FirstEnergy Corp. 10, FPL Group, Inc. 10, Great Plains Energy, Inc. 3, Hawaiian Electric Industries, Inc. 2, IDACORP, Inc. 1, Integrys Energy Group, Inc. 1, ITC Corp. 1, Laclede Group, Inc MDU Resources Group, Inc. 4, MGE Energy, Inc Middlesex Water Co New Jersey Resources Corp. 1, NiSource, Inc. 7, Northeast Utilities 7, Northwest Natural Gas Co NorthWestern Corp NV Energy, Inc. 5, OGE Energy Corp. 2, ONEOK, Inc. 5, Ormat Technologies, Inc Otter Tail Corp Pepco, Inc. 5, PG&E Corp. 10, Piedmont Natural Gas Co., Inc. 1, Pinnacle West Capital Corp. 2, PNM Resources, Inc. 2, Portland General Electric Co. 1, PPL Corp. 14, Public Service Enterprise Group, Inc. 12, Questar Corp. 4, Scana Corp. 2, Sempra Energy 6, SJW Corp South Jersey Industries, Inc Southern Co. (The) 21, Southwest Gas Corp. 1, TECO Energy, Inc. 5, UGI Corp. 2, UIL Corp. 1, Unitil Corp The accompanying notes are an integral part of the financial statements. 87

88 BlackRock CDN Russell 3000 Index Non-Taxable Fund Par (000s)/ Utilities (continued) UNS Energy Corp. 1, Vectren Corp. 2, Westar Energy, Inc. 3, WGL, Inc. 1, Wisconsin Energy Corp. 5, Xcel Energy, Inc. 12, York Water Co ,355 13,395 Total Common Stocks 352, ,580 Transaction Costs (Note 2) (20) Total Investments 353, ,367 Other Assets and Liabilities 1.3% 5,361 Net Assets 399,728 Portfolio Concentration (as a percentage of Net Assets) As at December 31, 2012 As at December 31, 2011 Portfolio by Category (%) (%) Government Guaranteed Consumer Discretionary Consumer Staples Energy Financials Health Care Industrials Information Technology Materials Telecommunication Services Utilities Other Assets and Liabilities Open futures contracts held by the Fund as at December 31, 2012 are shown in Note 4. The accompanying notes are an integral part of the financial statements. 88

89 BlackRock Active Canadian Equity Fund Statement of Net Assets As at December Assets Investments - at fair (Note 2) $ 2,080,522,377 $ 1,630,728,434 Cash 18,501,104 10,322,886 Margin due from brokers 1,212,043 1,452,361 Securities lending income receivable 55,008 2,796 Dividends and distributions from underlying trust units receivable 5,606,669 4,650,091 Accounts receivable from issue of units 255,713 2,158,750 Accounts receivable for investment sales 10,196,145 18,646,707 2,116,349,059 1,667,962,025 Liabilities Operating expenses payable 50,437 38,661 Payables for redemption of units 2,066,208 19,324,001 Payables for investment purchases 9,431,218-11,547,863 19,362,662 Net Assets $ 2,104,801,196 $ 1,648,599,363 Number of Units Issued and Outstanding (Note 8) 63,254,747 53,426,840 Net Assets per Unit $ $ Investments at Cost $ 1,957,930,869 $ 1,585,595,755 Approved by BlackRock Asset Management Canada Limited, Manager of the Funds Eric Léveillé, Director Noel Archard, Director The accompanying notes are an integral part of the financial statements. 89

90 BlackRock Active Canadian Equity Fund Statement of Operations For the Years Ended December Revenue Dividend income and distributions from underlying trust units $ 51,531,411 $ 42,869,714 Interest income 86,700 81,258 Securities lending income 585,728 82,638 Net gain (loss) from futures contracts 1,154,456 (1,435,030) 53,358,295 41,598,580 Expenses Custodian fees 190, ,239 Fund accounting expenses 69,648 73,145 Unitholder communication s Audit fees 14,408 15,757 Securities filing fees 31,972 57,139 Independent review committee fees 811 2,003 Other operating expenses 6,470 7, , ,890 Net Investment Income for the Year 53,043,684 41,290,690 Gain (Loss) on Investments Net realized gain on sale of investments 28,054, ,183,261 Transaction s (Note 2,13) (2,887,399) (2,445,406) Net change in unrealized appreciation (depreciation) in of investments 77,458,829 (265,452,623) Net Gain (Loss) on Investments 102,626,408 (153,714,768) Increase (Decrease) in Net Assets from Operations $ 155,670,092 $ (112,424,078) Increase (Decrease) in Net Assets from Operations per Unit $ 2.70 $ (2.04) Statement of Changes in Net Assets For the Years Ended December Net Assets - Beginning of Year $ 1,648,599,363 $ 1,919,568,427 Increase (Decrease) in Net Assets from Operations 155,670,092 (112,424,078) Capital Transactions Proceeds from issue of units 494,015, ,296,668 Reinvestment of distributions 86,745, ,017,907 Redemption of units (193,483,894) (300,841,654) Net capital transactions 387,277,658 (44,527,079) Distributions From net investment income (51,801,863) (39,583,340) From capital gains (30,058,403) (68,950,619) From capital gains redemption in kind (Note 9) (4,885,651) (5,483,948) Total distributions (86,745,917) (114,017,907) Increase (Decrease) in Net Assets for the Year 456,201,833 (270,969,064) Net Assets - End of Year $ 2,104,801,196 $ 1,648,599,363 The accompanying notes are an integral part of the financial statements. 90

91 BlackRock Active Canadian Equity Fund Canadian Common Stocks and Income Trusts Consumer Discretionary 5.0% Aimia, Inc. 1,637,478 22,089 24,333 Astral Media, Inc.-Class A 72,190 3,482 3,335 Cogeco Cable, Inc. 30,556 1,151 1,160 Dollarama, Inc. 412,720 21,380 24,330 Dorel Industries, Inc.-Class B 110,480 3,324 3,966 Gildan Activewear, Inc. 31,442 1,107 1,140 Linamar Corp. 223,263 4,560 5,175 Magna International, Inc.-Class A 758,507 32,382 37,599 Quebecor, Inc.-Class B 70,317 2,511 2,717 Westport Innovations, Inc. 60,576 1,655 1,595 93, ,350 Consumer Staples 2.1% Alimentation Couche Tard, Inc.- Class B 262,643 10,163 12,804 Cott Corp. 1,248,622 9,876 9,989 Jean Coutu Group, Inc.-Class A 621,945 9,231 9,025 Loblaw Cos., Ltd. 139,377 5,684 5,834 Metro, Inc.-Class A 62,617 3,715 3,959 North West Co., Inc. 89,752 2,011 2,008 40,680 43,619 Energy 26.9% Bankers Petroleum, Ltd. 317, ,015 Baytex Energy Corp. 658,642 30,805 28,216 Bellatrix Exploration, Ltd. 254,015 1,193 1,080 Calfrac Well Services, Ltd. 74,488 2,126 1,853 Canadian Natural Resources, Ltd. 2,182,369 68,096 62,481 Canadian Oil Sands, Ltd. 16, Celtic Exploration, Ltd. 118,856 3,135 3,118 Cenovus Energy, Inc. 1,688,012 57,276 56,194 Cequence Energy, Ltd. 321, Deethree Exploration, Ltd. 786,140 4,669 5,110 Enbridge, Inc. 1,601,627 49,648 68,870 Encana Corp. 541,341 11,642 10,610 Enerflex, Ltd. 316,149 3,816 3,765 Gibson Energy, Inc. 993,392 21,670 23,812 Imperial Oil, Ltd. 102,463 4,383 4,378 Inter Pipeline Fund 548,556 9,308 12,880 Legacy Oil + Gas, Inc. 3,315,948 24,936 22,615 Mullen Group, Ltd. 104,734 2,117 2,188 Nexen, Inc. 738,509 16,021 19,622 Niko Resources, Ltd. 83, Parkland Fuel Corp. 654,298 10,725 12,340 Pason Systems, Inc. 142,088 2,059 2,428 Pembina Pipeline Corp. 45,189 1,238 1,285 Petrobakken Energy, Ltd. 1,808,024 22,479 18,532 Petrobank Energy & Resources, Ltd. 57, Peyto Exploration & Development Corp. 97,383 2,178 2,231 Energy (continued) Precision Drilling Corp. 106, Savanna Energy Services Corp. 271,717 1,956 1,940 ShawCor, Ltd.-Class A 626,091 23,639 24,361 Suncor Energy, Inc. 2,780,272 91,514 90,915 Surge Energy, Inc. 58, TransCanada Corp. 1,140,183 48,569 53,554 Transglobe Energy Corp. 146,120 1,453 1,360 Trinidad Drilling, Ltd. 96, Uranium One, Inc. 605,352 1,132 1,417 Whitecap Resources, Inc. 2,612,718 21,672 22, , ,976 Financials 30.8% Bank of Montreal 557,186 31,315 33,882 Bank of Nova Scotia 1,944, , ,675 Boardwalk REIT 208,250 11,459 13,393 Brookfield Asset Management, Inc.- Class A 266,459 9,203 9,672 Brookfield Properties Co. 1,624,160 26,418 27,416 Canaccord Capital, Inc. 24, Canadian Imperial Bank of Commerce 306,554 23,208 24,512 Canadian REIT 282,284 9,663 12,206 Canadian Western Bank 173,112 4,592 4,916 Davis & Henderson Income Corp. 394,792 7,254 8,484 Dundee Corp.-Class A 231,655 5,449 7,093 Extendicare Inc. 252,353 1,966 1,930 fax Financial, Ltd. 21,556 7,750 7,653 Genworth MI Canada, Inc. 290,630 6,828 6,560 Granite Real Estate, Inc. 420,387 14,578 15,857 H&R REIT 166,519 3,943 4,013 Home Capital Group, Inc. 120,388 5,263 7,105 Industrial Alliance Insurance and Financial Services, Inc. 391,593 11,273 12,269 Intact Financial Corp. 510,130 28,476 32,985 Laurentian Bank of Canada 199,932 9,106 8,837 Manulife Financial Corp. 944,378 13,186 12,730 Northern Property Real Estate Investment Trust-REIT 118,825 3,640 3,666 Power Corp. of Canada 1,304,196 31,462 32,983 Royal Bank of Canada 2,012, , ,375 Sun Life Financial, Inc. 39,740 1,065 1,047 Toronto-Dominion Bank 1,525, , , , ,022 Health Care 2.6% Catamaran Corp. 218,651 9,450 10,196 Valeant Pharmaceuticals International, Inc. 748,893 40,738 44,364 50,188 54,560 The accompanying notes are an integral part of the financial statements. 91

92 BlackRock Active Canadian Equity Fund Industrials 5.0% Black Diamond Group, Ltd. 236,910 5,122 4,738 Canadian National Railway Co. 371,707 29,212 33,562 Chorus Aviation, Inc. 870,028 3,541 3,315 Finning International, Inc. 177,526 4,273 4,360 Progressive Waste Solutions, Ltd. 329,442 6,565 7,063 Stantec, Inc. 242,262 8,377 9,589 Toromont Industries, Ltd. 101,799 2,061 2,141 Transcontinental, Inc.-Class A 94,460 1,250 1,049 TransForce, Inc. 527,591 9,132 10,467 Vicwest, Inc. 81,644 1,107 1,012 Wajax Corp. 99,318 4,409 4,032 Westjet Airlines, Ltd. 1,244,764 18,700 24,472 Westshore Terminals Investment Corp , ,809 Information Technology 2.1% Constellation Software, Inc. 85,510 9,776 10,197 MacDonald Dettwiler & Associates, Ltd. 207,052 10,905 11,585 Otsuka Corp. 719,412 6,997 5,719 Research In Motion, Ltd. 1,052,050 8,076 12,393 Sandvine Corp. 492,913 1, Wi-Lan, Inc. 875,717 4,379 3,958 41,217 44,498 Materials 17.2% Aecon Group, Inc. 100,416 1,089 1,064 Agnico-Eagle Mines, Ltd. 272,808 12,774 14,192 Agrium, Inc. 24,585 2,168 2,437 Alacer Gold Corp. 106, Alamos Gold, Inc. 185,317 3,165 3,226 Allied Nevada Gold Corp. 35,507 1,244 1,062 Aurizon Mines, Ltd. 171, B2Gold Corp. 3,984,393 14,568 14,065 Barrick Gold Corp. 1,379,470 55,685 47,881 Canexus Corp. 109, Capstone Mining Corp. 378, CCL Industries-Class B 102,001 3,532 4,335 Centerra Gold, Inc. 709,856 8,843 6,580 Dundee Precious Metals, Inc. 502,570 4,416 4,242 Endeavour Silver Corp. 477,099 4,066 3,726 First Quantum Minerals, Ltd. 583,329 11,863 12,752 Fortuna Silver Mines, Inc. 31, Goldcorp, Inc. 1,400,071 54,909 50,935 Hudbay Minerals, Inc. 41, Iamgold Corp. 524,746 8,287 5,961 Inmet Mining Corp. 29,126 1,999 2,155 International Tower Hill Mines, Ltd. 152,986 1, Kinross Gold Corp. 2,876,992 35,963 27,619 Materials (continued) Kirkland Lake Gold, Inc. 62, Labrador Iron Ore Royalty Corp. 140,027 4,534 4,806 Lundin Mining Corp. 97, Major Drilling Group International 888,805 11,146 8,675 Methanex Corp. 633,275 18,748 20,012 Nevsun Resources, Ltd. 1,866,574 8,702 7,877 Pan American Silver Corp. 300,893 6,430 5,594 Potash Corp. of Saskatchewan 675,008 29,771 27,257 Rio Alto Mining, Ltd. 812,280 4,510 4,126 SEMAFO, Inc. 128, Sherritt International Corp. 1,603,321 8,535 9,107 Silver Wheaton Corp. 10, Silvercorp Metals, Inc. 72, Sino-Forest Corp.-Class A 282,111 2,105 - Teck Resources, Ltd. 723,889 24,956 26,096 Turquoise Hill Resources, Ltd. 48, West Fraser Timber Co., Ltd. 276,022 15,603 19,324 Yamana Gold, Inc. 1,235,780 19,413 21, , ,420 Telecommunication Services 5.6% BCE, Inc. 592,524 22,830 25,241 Rogers Communications, Inc.-Class B 936,789 39,796 42,287 TELUS Corp. 773,180 40,062 50, , ,816 Utilities 1.5% Atco, Ltd.-Class I 233,139 15,443 18,716 Canadian Utilities, Ltd.-Class A 189,526 11,573 13,582 Fortis, Inc. 4, ,169 32,452 Total Canadian Common Stocks and Income Trusts 1,959,199 2,080,522 Transaction Costs (Note 2) (1,268) Total Investments 1,957,931 2,080,522 Other Assets and Liabilities 1.2% 24,279 Net Assets 2,104,801 The accompanying notes are an integral part of the financial statements. 92

93 BlackRock Active Canadian Equity Fund Portfolio Concentration (as a percentage of Net Assets) As at December 31, 2012 As at December 31, 2011 Portfolio by Category (%) (%) Consumer Discretionary Consumer Staples Energy Financials Health Care Industrials Information Technology Materials Telecommunication Services Utilities Other Assets and Liabilities Open futures contracts held by the Fund as at December 31, 2012 are shown in Note 4. The accompanying notes are an integral part of the financial statements. 93

94 BlackRock Active Canadian Equity Ex-Income Trusts Fund Statement of Net Assets As at December Assets Investments - at fair (Note 2) $ 532,483,504 $ 1,213,361,539 Cash 7,400,000 7,076,959 Securities lending income receivable 14,892 1,581 Dividends and distributions from underlying trust units receivable 1,486,653 3,344,411 Accounts receivable from issue of units - 11,200,000 Accounts receivable for investment sales 2,736,345 2,000, ,121,394 1,236,984,654 Liabilities Operating expenses payable 33,393 33,943 Payables for redemption of units 1,646,380 - Payables for investment purchases 2,501,839 11,255,903 4,181,612 11,289,846 Net Assets $ 539,939,782 $ 1,225,694,808 Number of Units Issued and Outstanding (Note 8) 16,421,299 39,930,659 Net Assets per Unit $ $ Investments at Cost $ 504,558,370 $ 1,186,958,460 Approved by BlackRock Asset Management Canada Limited, Manager of the Funds Eric Léveillé, Director Noel Archard, Director The accompanying notes are an integral part of the financial statements. 94

95 BlackRock Active Canadian Equity Ex-Income Trusts Fund Statement of Operations For the Years Ended December Revenue Dividend income and distributions from underlying trust units $ 23,399,083 $ 33,200,472 Interest income 39,315 60,632 Securities lending income 247,194 60,308 23,685,592 33,321,412 Expenses Custodian fees 143, ,118 Fund accounting expenses 42,803 64,455 Unitholder communication s Audit fees 14,150 15,476 Securities filing fees 12,594 21,245 Independent review committee fees 500 1,568 Other operating expenses 4,525 6, , ,553 Net Investment Income for the Year 23,467,990 33,075,859 Gain (Loss) on Investments Net realized gain on sale of investments 23,801, ,309,134 Transaction s (Note 2,13) (1,465,191) (2,219,072) Net change in unrealized appreciation (depreciation) in of investments 1,522,055 (265,170,280) Net Gain (Loss) on Investments 23,858,512 (126,080,218) Increase (Decrease) in Net Assets from Operations $ 47,326,502 $ (93,004,359) Increase (Decrease) in Net Assets from Operations per Unit $ 1.74 $ (2.09) Statement of Changes in Net Assets For the Years Ended December Net Assets - Beginning of Year $ 1,225,694,808 $ 1,743,144,016 Increase (Decrease) in Net Assets from Operations 47,326,502 (93,004,359) Capital Transactions Proceeds from issue of units 9,560, ,140,766 Reinvestment of distributions 68,159, ,375,889 Redemption of units (742,642,355) (666,585,615) Net capital transactions (664,921,997) (271,068,960) Distributions From net investment income (25,305,881) (32,811,677) From capital gains - (112,135,576) From capital gains redemption in kind (Note 9) (42,853,650) (8,428,636) Total distributions (68,159,531) (153,375,889) Decrease in Net Assets for the Year (685,755,026) (517,449,208) Net Assets - End of Year $ 539,939,782 $ 1,225,694,808 The accompanying notes are an integral part of the financial statements. 95

96 BlackRock Active Canadian Equity Ex-Income Trusts Fund Canadian Common Stocks and Income Trusts Consumer Discretionary 5.0% Aimia, Inc. 420,129 5,619 6,243 Astral Media, Inc.-Class A 18, Cogeco Cable, Inc. 7, Dollarama, Inc. 105,658 5,231 6,229 Dorel Industries, Inc.-Class B 27, ,000 Gildan Activewear, Inc. 8, Linamar Corp. 56,617 1,161 1,312 Magna International, Inc.-Class A 193,853 8,416 9,609 Quebecor, Inc.-Class B 17, Westport Innovations, Inc. 15, ,788 26,945 Consumer Staples 2.1% Alimentation Couche Tard, Inc.- Class B 67,550 2,532 3,293 Cott Corp. 317,998 2,504 2,544 Jean Coutu Group, Inc.-Class A 159,009 2,366 2,307 Loblaw Cos., Ltd. 35,973 1,458 1,506 Metro, Inc.-Class A 16, ,016 North West Co., Inc. 22, ,310 11,158 Energy 26.8% Bankers Petroleum, Ltd. 78, Baytex Energy Corp. 168,579 8,056 7,222 Bellatrix Exploration, Ltd. 64, Calfrac Well Services, Ltd. 18, Canadian Natural Resources, Ltd. 558,493 17,653 15,990 Canadian Oil Sands, Ltd. 3, Celtic Exploration, Ltd. 30, Cenovus Energy, Inc. 431,642 14,951 14,369 Cequence Energy, Ltd. 89, Deethree Exploration, Ltd. 201,151 1,194 1,307 Enbridge, Inc. 409,912 11,704 17,626 Encana Corp. 138,641 2,955 2,717 Enerflex, Ltd. 81, Gibson Energy, Inc. 254,561 5,533 6,102 Imperial Oil, Ltd. 26,284 1,124 1,123 Inter Pipeline Fund 140,752 3,023 3,305 Legacy Oil + Gas, Inc. 848,733 6,373 5,788 Mullen Group, Ltd. 25, Nexen, Inc. 188,189 4,944 5,000 Niko Resources, Ltd. 21, Parkland Fuel Corp. 167,645 2,787 3,162 Pason Systems, Inc. 35, Pembina Pipeline Corp. 11, Petrobakken Energy, Ltd. 462,981 5,925 4,746 Petrobank Energy & Resources, Ltd. 14, Peyto Exploration & Development Corp. 25, Energy (continued) Precision Drilling Corp. 27, Savanna Energy Services Corp. 68, ShawCor, Ltd.-Class A 160,245 5,891 6,235 Suncor Energy, Inc. 712,301 23,783 23,292 Surge Energy, Inc. 15, TransCanada Corp. 291,881 12,291 13,710 Transglobe Energy Corp. 36, Trinidad Drilling, Ltd. 24, Uranium One, Inc. 152, Whitecap Resources, Inc. 669,095 5,550 5, , ,570 Financials 30.7% Bank of Montreal 142,659 7,805 8,675 Bank of Nova Scotia 498,004 25,656 28,595 Boardwalk REIT 53,104 3,408 3,415 Brookfield Asset Management, Inc.- Class A 68,541 2,316 2,488 Brookfield Properties Co. 414,989 6,748 7,005 Canaccord Capital, Inc. 5, Canadian Imperial Bank of Commerce 78,525 5,981 6,279 Canadian REIT 72,410 3,044 3,131 Canadian Western Bank 44,408 1,272 1,261 Davis & Henderson Income Corp. 100,107 1,851 2,151 Dundee Corp.-Class A 59,301 1,402 1,816 Extendicare Inc. 63, fax Financial, Ltd. 5,520 1,984 1,960 Genworth MI Canada, Inc. 73,600 1,809 1,661 Granite Real Estate, Inc. 107,656 3,720 4,061 H&R REIT 43,150 1,021 1,040 Home Capital Group, Inc. 30,850 1,307 1,821 Industrial Alliance Insurance and Financial Services, Inc. 99,993 2,954 3,133 Intact Financial Corp. 130,245 7,401 8,422 Laurentian Bank of Canada 51,038 2,321 2,256 Manulife Financial Corp. 240,696 3,668 3,245 Northern Property Real Estate Investment Trust-REIT 30, Power Corp. of Canada 333,779 8,057 8,441 Royal Bank of Canada 515,179 27,249 30,813 Sun Life Financial, Inc. 10, Toronto-Dominion Bank 390,233 25,626 32, , ,045 Health Care 2.6% Catamaran Corp. 56,009 2,384 2,612 Valeant Pharmaceuticals International, Inc. 191,487 10,414 11,343 12,798 13,955 The accompanying notes are an integral part of the financial statements. 96

97 BlackRock Active Canadian Equity Ex-Income Trusts Fund Industrials 5.0% Black Diamond Group, Ltd. 60,108 1,300 1,202 Canadian National Railway Co. 95,271 7,125 8,602 Chorus Aviation, Inc. 224, Finning International, Inc. 45,794 1,096 1,125 Progressive Waste Solutions, Ltd. 84,566 1,684 1,813 Stantec, Inc. 62,153 2,159 2,460 Toromont Industries, Ltd. 25, Transcontinental, Inc.-Class A 24, TransForce, Inc. 135,328 2,415 2,685 Vicwest, Inc. 20, Wajax Corp. 25,229 1,120 1,024 Westjet Airlines, Ltd. 316,749 4,712 6,227 Westshore Terminals Investment Corp ,616 27,073 Information Technology 2.1% Constellation Software, Inc. 21,907 2,510 2,612 MacDonald Dettwiler & Associates, Ltd. 52,744 2,775 2,951 Otsuka Corp. 183,932 1,776 1,462 Research In Motion, Ltd. 270,003 2,011 3,181 Sandvine Corp. 134, Wi-Lan, Inc. 227,985 1,131 1,031 10,522 11,413 Materials 17.2% Aecon Group, Inc. 24, Agnico-Eagle Mines, Ltd. 69,777 3,309 3,630 Agrium, Inc. 6, Alacer Gold Corp. 22, Alamos Gold, Inc. 47, Allied Nevada Gold Corp. 8, Aurizon Mines, Ltd. 46, B2Gold Corp. 1,020,726 3,768 3,603 Barrick Gold Corp. 353,271 14,649 12,262 Canexus Corp. 28, Capstone Mining Corp. 98, CCL Industries-Class B 26, ,121 Centerra Gold, Inc. 181,697 2,327 1,684 Dundee Precious Metals, Inc. 128,783 1,150 1,087 Endeavour Silver Corp. 121,639 1, First Quantum Minerals, Ltd. 150,139 3,119 3,282 Fortuna Silver Mines, Inc. 7, Goldcorp, Inc. 358,781 14,223 13,052 Hudbay Minerals, Inc. 10, Iamgold Corp. 133,612 2,265 1,518 Inmet Mining Corp. 7, International Tower Hill Mines, Ltd. 41, Kinross Gold Corp. 736,054 9,713 7,066 Kirkland Lake Gold, Inc. 16, Materials (continued) Labrador Iron Ore Royalty Corp. 35,950 1,079 1,234 Lundin Mining Corp. 26, Major Drilling Group International 227,121 3,043 2,217 Methanex Corp. 162,231 4,732 5,127 Nevsun Resources, Ltd. 479,175 2,313 2,022 Pan American Silver Corp. 77,111 1,651 1,433 Potash Corp. of Saskatchewan 172,871 7,552 6,981 Rio Alto Mining, Ltd. 208,347 1,160 1,058 SEMAFO, Inc. 34, Sherritt International Corp. 410,752 2,278 2,333 Silver Wheaton Corp. 2, Silvercorp Metals, Inc. 18, Sino-Forest Corp.-Class A 223,596 1,668 - Teck Resources, Ltd. 185,236 6,387 6,678 Turquoise Hill Resources, Ltd. 12, West Fraser Timber Co., Ltd. 70,680 4,104 4,948 Yamana Gold, Inc. 315,982 4,932 5, ,931 92,821 Telecommunication Services 5.6% BCE, Inc. 151,478 5,580 6,453 Rogers Communications, Inc.-Class B 240,410 10,240 10,852 TELUS Corp. 198,205 9,905 12,891 25,725 30,196 Utilities 1.5% Atco, Ltd.-Class I 59,705 3,635 4,793 Canadian Utilities, Ltd.-Class A 48,443 3,224 3,472 Fortis, Inc. 1, ,900 8,308 Total Canadian Common Stocks and Income Trusts 504, ,484 Transaction Costs (Note 2) (333) Total Investments 504, ,484 Other Assets and Liabilities 1.4% 7,456 Net Assets 539,940 The accompanying notes are an integral part of the financial statements. 97

98 BlackRock Active Canadian Equity Ex-Income Trusts Fund Portfolio Concentration (as a percentage of Net Assets) As at December 31, 2012 As at December 31, 2011 Portfolio by Category (%) (%) Consumer Discretionary Consumer Staples Energy Financials Health Care Industrials Information Technology Materials Telecommunication Services Utilities Other Assets and Liabilities The accompanying notes are an integral part of the financial statements. 98

99 BlackRock Active Canadian Equity DC Fund Statement of Net Assets As at December Assets Investments - at fair (Note 2) $ 666,988,761 $ 520,538,281 Cash 7,076,514 3,632,398 Margin due from brokers 468, ,794 Securities lending income receivable 14, Dividends and distributions from underlying trust units receivable 1,777,726 1,441,771 Accounts receivable from issue of units 397, ,247 Accounts receivable for investment sales 3,347, , ,071, ,926,738 Liabilities Operating expenses payable 33,353 27,760 Payables for redemption of units 209, ,645 Payables for investment purchases 3,070,363-3,313, ,405 Net Assets $ 676,757,660 $ 526,750,333 Number of Units Issued and Outstanding (Note 8) 28,096,931 23,434,669 Net Assets per Unit $ $ Investments at Cost $ 634,319,311 $ 509,207,633 Approved by BlackRock Asset Management Canada Limited, Manager of the Funds Eric Léveillé, Director Noel Archard, Director The accompanying notes are an integral part of the financial statements. 99

100 BlackRock Active Canadian Equity DC Fund Statement of Operations For the Years Ended December Revenue Dividend income and distributions from underlying trust units $ 16,505,769 $ 12,800,006 Interest income 35,117 27,792 Securities lending income 156,551 20,341 Net gain (loss) from futures contracts 487,429 (742,314) 17,184,866 12,105,825 Expenses Custodian fees 141, ,971 Fund accounting expenses 37,013 42,127 Unitholder communication s Audit fees 13,949 14,728 Securities filing fees 9,949 8,752 Independent review committee fees Other operating expenses 4,115 4, , ,442 Net Investment Income for the Year 16,978,305 11,929,383 Gain (Loss) on Investments Net realized gain on sale of investments 3,975,087 33,898,142 Transaction s (Note 2,13) (1,054,977) (808,844) Net change in unrealized appreciation (depreciation) in of investments 21,338,802 (85,828,795) Net Gain (Loss) on Investments 24,258,912 (52,739,497) Increase (Decrease) in Net Assets from Operations $ 41,237,217 $ (40,810,114) Increase (Decrease) in Net Assets from Operations per Unit $ 1.63 $ (1.76) Statement of Changes in Net Assets For the Years Ended December Net Assets - Beginning of Year $ 526,750,333 $ 570,390,049 Increase (Decrease) in Net Assets from Operations 41,237,217 (40,810,114) Capital Transactions Proceeds from issue of units 158,257,787 60,492,365 Reinvestment of distributions 20,909,818 41,793,759 Redemption of units (49,487,677) (63,321,967) Net capital transactions 129,679,928 38,964,157 Distributions From net investment income (16,726,898) (11,413,158) From capital gains (4,182,920) (30,380,601) Total distributions (20,909,818) (41,793,759) Increase (Decrease) in Net Assets for the Year 150,007,327 (43,639,716) Net Assets - End of Year $ 676,757,660 $ 526,750,333 The accompanying notes are an integral part of the financial statements. 100

101 BlackRock Active Canadian Equity DC Fund Canadian Common Stocks and Income Trusts Consumer Discretionary 5.0% Aimia, Inc. 525,347 7,112 7,807 Astral Media, Inc.-Class A 23,148 1,115 1,069 Cogeco Cable, Inc. 9, Dollarama, Inc. 132,315 6,744 7,800 Dorel Industries, Inc.-Class B 35,269 1,072 1,266 Gildan Activewear, Inc. 10, Linamar Corp. 71,269 1,470 1,652 Magna International, Inc.-Class A 243,242 10,605 12,058 Quebecor, Inc.-Class B 22, Westport Innovations, Inc. 19, ,153 33,764 Consumer Staples 2.1% Alimentation Couche Tard, Inc.- Class B 84,444 3,219 4,117 Cott Corp. 400,770 3,180 3,206 Jean Coutu Group, Inc.-Class A 198,935 2,952 2,887 Loblaw Cos., Ltd. 44,577 1,805 1,866 Metro, Inc.-Class A 19,995 1,189 1,264 North West Co., Inc. 28, ,985 13,978 Energy 26.8% Bankers Petroleum, Ltd. 101, Baytex Energy Corp. 211,125 10,041 9,045 Bellatrix Exploration, Ltd. 79, Calfrac Well Services, Ltd. 23, Canadian Natural Resources, Ltd. 699,125 21,803 20,016 Canadian Oil Sands, Ltd. 5, Celtic Exploration, Ltd. 38,050 1, Cenovus Energy, Inc. 541,645 18,697 18,031 Cequence Energy, Ltd. 100, Deethree Exploration, Ltd. 251,020 1,497 1,632 Enbridge, Inc. 513,424 15,605 22,077 Encana Corp. 173,403 3,695 3,399 Enerflex, Ltd. 101,330 1,218 1,207 Gibson Energy, Inc. 318,667 6,941 7,638 Imperial Oil, Ltd. 32,843 1,405 1,403 Inter Pipeline Fund 176,142 3,800 4,136 Legacy Oil + Gas, Inc. 1,063,897 7,933 7,256 Mullen Group, Ltd. 33, Nexen, Inc. 236,213 6,162 6,276 Niko Resources, Ltd. 27, Parkland Fuel Corp. 209,886 3,506 3,959 Pason Systems, Inc. 45, Pembina Pipeline Corp. 14, Petrobakken Energy, Ltd. 579,828 7,314 5,943 Petrobank Energy & Resources, Ltd. 18, Peyto Exploration & Development Corp. 31, Energy (continued) Precision Drilling Corp. 34, Savanna Energy Services Corp. 88, ShawCor, Ltd.-Class A 200,684 7,522 7,809 Suncor Energy, Inc. 891,285 29,541 29,145 Surge Energy, Inc. 16, TransCanada Corp. 365,536 15,525 17,169 Transglobe Energy Corp. 46, Trinidad Drilling, Ltd. 30, Uranium One, Inc. 192, Whitecap Resources, Inc. 837,554 6,966 7, , ,101 Financials 30.7% Bank of Montreal 178,829 9,928 10,875 Bank of Nova Scotia 623,509 32,225 35,802 Boardwalk REIT 66,786 4,282 4,295 Brookfield Asset Management, Inc.- Class A 85,476 2,924 3,103 Brookfield Properties Co. 516,222 8,385 8,714 Canaccord Capital, Inc. 7, Canadian Imperial Bank of Commerce 98,359 7,521 7,865 Canadian REIT 90,592 3,803 3,917 Canadian Western Bank 55,590 1,594 1,579 Davis & Henderson Income Corp. 126,558 2,363 2,720 Dundee Corp.-Class A 74,151 1,768 2,270 Extendicare Inc. 80, fax Financial, Ltd. 6,897 2,471 2,448 Genworth MI Canada, Inc. 92,672 2,245 2,092 Granite Real Estate, Inc. 134,796 4,678 5,085 H&R REIT 53,782 1,272 1,296 Home Capital Group, Inc. 38,346 1,681 2,263 Industrial Alliance Insurance and Financial Services, Inc. 125,686 3,659 3,938 Intact Financial Corp. 163,765 9,460 10,589 Laurentian Bank of Canada 63,782 2,899 2,819 Manulife Financial Corp. 303,154 4,355 4,087 Northern Property Real Estate Investment Trust-REIT 38,295 1,169 1,181 Power Corp. of Canada 418,114 10,112 10,574 Royal Bank of Canada 645,233 34,532 38,591 Sun Life Financial, Inc. 13, Toronto-Dominion Bank 488,970 33,133 40, , ,017 Health Care 2.6% Catamaran Corp. 70,134 3,037 3,271 Valeant Pharmaceuticals International, Inc. 240,464 13,103 14,245 16,140 17,516 The accompanying notes are an integral part of the financial statements. 101

102 BlackRock Active Canadian Equity DC Fund Industrials 5.0% Black Diamond Group, Ltd. 75,624 1,626 1,512 Canadian National Railway Co. 119,304 9,139 10,772 Chorus Aviation, Inc. 280,359 1,052 1,068 Finning International, Inc. 57,154 1,362 1,404 Progressive Waste Solutions, Ltd. 105,781 2,102 2,268 Stantec, Inc. 77,761 2,720 3,078 Toromont Industries, Ltd. 32, Transcontinental, Inc.-Class A 29, TransForce, Inc. 169,350 3,033 3,360 Vicwest, Inc. 25, Wajax Corp. 31,585 1,399 1,282 Westjet Airlines, Ltd. 399,484 6,116 7,854 Westshore Terminals Investment Corp ,951 33,916 Information Technology 2.1% Constellation Software, Inc. 27,465 3,148 3,275 MacDonald Dettwiler & Associates, Ltd. 66,032 3,482 3,695 Otsuka Corp. 229,981 2,189 1,828 Research In Motion, Ltd. 337,688 2,737 3,978 Sandvine Corp. 153, Wi-Lan, Inc. 279,592 1,387 1,264 13,297 14,241 Materials 17.2% Aecon Group, Inc. 31, Agnico-Eagle Mines, Ltd. 87,554 4,207 4,554 Agrium, Inc. 7, Alacer Gold Corp. 34, Alamos Gold, Inc. 59,455 1,017 1,035 Allied Nevada Gold Corp. 11, Aurizon Mines, Ltd. 53, B2Gold Corp. 1,277,880 4,716 4,511 Barrick Gold Corp. 442,652 18,224 15,364 Canexus Corp. 35, Capstone Mining Corp. 122, CCL Industries-Class B 32,935 1,170 1,400 Centerra Gold, Inc. 226,596 2,868 2,100 Dundee Precious Metals, Inc. 161,096 1,434 1,360 Endeavour Silver Corp. 152,581 1,297 1,192 First Quantum Minerals, Ltd. 187,630 3,935 4,102 Fortuna Silver Mines, Inc. 10, Goldcorp, Inc. 449,184 18,016 16,341 Hudbay Minerals, Inc. 13, Iamgold Corp. 166,964 2,722 1,897 Inmet Mining Corp. 9, International Tower Hill Mines, Ltd. 44, Kinross Gold Corp. 923,106 11,747 8,862 Kirkland Lake Gold, Inc. 20, Materials (continued) Labrador Iron Ore Royalty Corp. 45,042 1,347 1,546 Lundin Mining Corp. 31, Major Drilling Group International 285,774 3,773 2,789 Methanex Corp. 203,135 5,942 6,419 Nevsun Resources, Ltd. 598,334 2,807 2,525 Pan American Silver Corp. 98,115 2,080 1,824 Potash Corp. of Saskatchewan 216,399 9,618 8,738 Rio Alto Mining, Ltd. 260,473 1,441 1,323 SEMAFO, Inc. 41, Sherritt International Corp. 513,147 2,834 2,915 Silver Wheaton Corp. 3, Silvercorp Metals, Inc. 23, Sino-Forest Corp.-Class A 89, Teck Resources, Ltd. 232,369 8,011 8,377 Turquoise Hill Resources, Ltd. 15, West Fraser Timber Co., Ltd. 88,502 5,214 6,196 Yamana Gold, Inc. 396,489 6,363 6, , ,270 Telecommunication Services 5.6% BCE, Inc. 189,466 7,204 8,071 Rogers Communications, Inc.-Class B 300,775 12,843 13,577 TELUS Corp. 248,264 12,897 16,147 32,944 37,795 Utilities 1.5% Atco, Ltd.-Class I 74,751 4,667 6,001 Canadian Utilities, Ltd.-Class A 60,564 4,033 4,340 Fortis, Inc. 1, ,748 10,391 Total Canadian Common Stocks and Income Trusts 634, ,989 Transaction Costs (Note 2) (441) Total Investments 634, ,989 Other Assets and Liabilities 1.4% 9,769 Net Assets 676,758 The accompanying notes are an integral part of the financial statements. 102

103 BlackRock Active Canadian Equity DC Fund Portfolio Concentration (as a percentage of Net Assets) As at December 31, 2012 As at December 31, 2011 Portfolio by Category (%) (%) Consumer Discretionary Consumer Staples Energy Financials Health Care Industrials Information Technology Materials Telecommunication Services Utilities Other Assets and Liabilities Open futures contracts held by the Fund as at December 31, 2012 are shown in Note 4. The accompanying notes are an integral part of the financial statements. 103

104 BlackRock Active Canadian Equity Small Cap Fund Statement of Net Assets As at December Assets Investments - at fair (Note 2) $ 78,786,844 $ 132,593,968 Cash 2,393, ,881 Margin due from brokers 218,340 94,425 Securities lending income receivable 995 1,312 Dividends and distributions from underlying trust units receivable 200, ,926 Accounts receivable for investment sales 771, ,710 82,371, ,757,222 Liabilities Operating expenses payable 19,945 21,001 Payables for investment purchases 651, ,133 21,001 Net Assets $ 81,700,241 $ 134,736,221 Number of Units Issued and Outstanding (Note 8) 1,679,054 3,030,381 Net Assets per Unit $ $ Investments at Cost $ 76,945,947 $ 132,422,594 Approved by BlackRock Asset Management Canada Limited, Manager of the Funds Eric Léveillé, Director Noel Archard, Director The accompanying notes are an integral part of the financial statements. 104

105 BlackRock Active Canadian Equity Small Cap Fund Statement of Operations For the Years Ended December Revenue Dividend income and distributions from underlying trust units $ 2,639,164 $ 3,387,876 Interest income 6,481 8,737 Securities lending income 40,041 26,155 Net gain (loss) from futures contracts 98,876 (226,633) 2,784,562 3,196,135 Expenses Custodian fees 61,479 56,246 Fund accounting expenses 33,575 32,556 Unitholder communication s Audit fees 12,630 13,224 Securities filing fees 1,798 2,477 Independent review committee fees Other operating expenses 2,606 3, , ,129 Net Investment Income for the Year 2,672,411 3,087,006 Gain (Loss) on Investments Net realized gain on sale of investments 7,419,807 15,224,861 Transaction s (Note 2,13) (404,839) (504,690) Net change in unrealized appreciation (depreciation) in of investments 1,669,523 (29,462,203) Net Gain (Loss) on Investments 8,684,491 (14,742,032) Increase (Decrease) in Net Assets from Operations $ 11,356,902 $ (11,655,026) Increase (Decrease) in Net Assets from Operations per Unit $ 4.63 $ (3.22) Statement of Changes in Net Assets For the Years Ended December Net Assets - Beginning of Year $ 134,736,221 $ 177,102,860 Increase (Decrease) in Net Assets from Operations 11,356,902 (11,655,026) Capital Transactions Reinvestment of distributions 9,264,426 17,648,856 Redemption of units (64,392,882) (30,711,613) Net capital transactions (55,128,456) (13,062,757) Distributions From net investment income (2,762,933) (3,048,545) From capital gains (6,501,493) (14,600,311) Total distributions (9,264,426) (17,648,856) Decrease in Net Assets for the Year (53,035,980) (42,366,639) Net Assets - End of Year $ 81,700,241 $ 134,736,221 The accompanying notes are an integral part of the financial statements. 105

106 BlackRock Active Canadian Equity Small Cap Fund Canadian Common Stocks and Income Trusts Consumer Discretionary 6.3% Aimia, Inc. 88,231 1,278 1,311 Astral Media, Inc.-Class A 16, Cogeco Cable, Inc. 6, Dollarama, Inc. 27,426 1,507 1,617 Dorel Industries, Inc.-Class B 3, EnerCare, Inc. 96, Westport Innovations, Inc. 9, ,051 5,119 Consumer Staples 3.2% Alimentation Couche Tard, Inc.- Class B 34,103 1,497 1,662 Alliance Grain Traders, Inc. 1, Colabor Group, Inc. 14, Jean Coutu Group, Inc.-Class A 40, North West Co., Inc. 10, ,418 2,619 Energy 24.2% Angle Energy, Inc. 222, Baytex Energy Corp. 43,260 2,038 1,853 Celtic Exploration, Ltd. 18, Crescent Point Energy Corp. 17, Deethree Exploration, Ltd. 114, Essential Energy Services Trust 23, Gibson Energy, Inc. 57,445 1,224 1,377 Inter Pipeline Fund 22, Legacy Oil + Gas, Inc. 141,222 1, Niko Resources, Ltd. 12, NuVista Energy, Ltd. 1, Pacific Rubiales Energy Corp. 25, Paramount Resources, Ltd.-Class A 1, Parex Resources, Inc. 26, Parkland Fuel Corp. 3, Pason Systems, Inc. 23, Pembina Pipeline Corp. 86,935 2,358 2,472 Peyto Exploration & Development Corp. 63,800 1,365 1,462 Precision Drilling Corp. 11, Pulse Seismic, Inc. 195, RMP Energy, Inc. 25, Savanna Energy Services Corp. 36, ShawCor, Ltd.-Class A 32,706 1,084 1,273 Strad Energy Services, Ltd. 46, Tourmaline Oil Corp. 53,296 1,442 1,659 Transglobe Energy Corp. 21, Trilogy Energy Corp. 10, Uranium One, Inc. 92, Vermilion Energy, Inc. 22,460 1,065 1,164 Whitecap Resources, Inc. 119, ,033 18,974 19,764 Financials 22.3% Alaris Royalty Corp. 4, Altus Group, Ltd. 4, Boardwalk REIT 20,409 1,312 1,312 Brookfield Properties Co. 97,543 1,602 1,646 Canaccord Capital, Inc. 4, Canadian REIT 31,095 1,337 1,345 Canadian Western Bank 43,021 1,152 1,222 Chartwell Seniors Housing REIT 45, CI Financial Corp. 1, Davis & Henderson Income Corp. 1, Dundee Corp.-Class A 1, Element Financial Corp Common Stock 114, Extendicare Inc. 19, fax Financial, Ltd. 3,038 1,147 1,078 GMP Capital, Inc. 3, Great-West Lifeco, Inc. 32, H&R REIT 51,000 1,209 1,229 Home Capital Group, Inc. 13, IGM Financial, Inc Innvest Real Estate Investment Trust-REIT 43, Intact Financial Corp. 39,652 1,904 2,564 Interrent Real Estate Investment Trust-REIT 11, Morguard Real Estate Investment Trust-REIT 45, Onex Corp. 9, Power Financial Corp. 77,275 2,005 2,102 RioCan REIT 30, ,061 18,207 Health Care 3.1% Catamaran Corp. 37,365 1,509 1,743 Medical Facilities Corp. 57, ,331 2,534 Industrials 6.6% Air Canada-Class B 441, Alexco Resource Corp. 18, Badger Daylighting, Ltd. 1, Black Diamond Group, Ltd. 21, Boyd Group Income Fund-UNIT 1, Chorus Aviation, Inc. 108, Directcash Payments, Inc. 1, Finning International, Inc. 6, Stantec, Inc. 28, ,132 Superior Plus, Inc. 20, Transcontinental, Inc.-Class A 11, TransForce, Inc. 28, The accompanying notes are an integral part of the financial statements. 106

107 BlackRock Active Canadian Equity Small Cap Fund Industrials (continued) Westernone Equity Income Fund- UNIT 11, Westjet Airlines, Ltd. 65, ,286 4,654 5,368 Information Technology 6.4% 5N Plus, Inc. 61, Aastra Technologies, Ltd. 11, CGI Group, Inc.-Class A 22, Constellation Software, Inc. 8, ,036 MacDonald Dettwiler & Associates, Ltd. 13, Otsuka Corp. 181,291 1,907 1,441 Sierra Wireless, Inc. 27, Wi-Lan, Inc. 195, ,718 5,205 Materials 19.3% Alamos Gold, Inc. 28, Altius Minerals Corp. 2, Aurizon Mines, Ltd. 9, B2Gold Corp. 286, ,011 Capstone Mining Corp. 93, Cascades, Inc. 33, CCL Industries-Class B 23, ,013 Centerra Gold, Inc. 35, Detour Gold Corp. 19, Dundee Precious Metals, Inc. 114, Eldorado Gold Corp. 7, Endeavour Silver Corp. 77, Fortuna Silver Mines, Inc. 36, Franco-Nevada Corp. 15, Hudbay Minerals, Inc. 48, Inmet Mining Corp. 7, International Forest Products, Ltd.- Class A 33, Intertape Polymer Group, Inc. 82, Kirkland Lake Gold, Inc. 24, Lundin Mining Corp. 58, MAG Silver Corp. 15, Major Drilling Group International 66, Nevsun Resources, Ltd. 16, New Gold, Inc. 167,131 1,827 1,832 Noranda Income Fund-UNIT 16, OceanaGold Corp. 12, Pan American Silver Corp. 48,983 1, Premier Gold Mines, Ltd. 2, Primero Mining Corp. 36, Revett Minerals, Inc. 9, Rubicon Minerals Corp. 16, SEMAFO, Inc. 150, Materials (continued) Sherritt International Corp. 147, Sino-Forest Corp.-Class A 113,922 1,420 - Torex Gold Resources, Inc. 29, Turquoise Hill Resources, Ltd. 40, West Fraser Timber Co., Ltd. 17, ,217 17,331 15,812 Telecommunication Services 0.5% Bell Aliant, Inc. 9, Manitoba Telecom Services, Inc. 5, Utilities 4.5% Atco, Ltd.-Class I 17, ,436 Canadian Utilities, Ltd.-Class A 23,524 1,435 1,686 Capital Power Corp. 5, Emera, Inc. 2, Innergex Renewable Energy, Inc. 36, ,038 3,727 Total Canadian Common Stocks and Income Trusts 77,019 78,787 Transaction Costs (Note 2) (73) Total Investments 76,946 78,787 Other Assets and Liabilities 3.6% 2,913 Net Assets 81,700 Portfolio Concentration (as a percentage of Net Assets) As at December 31, 2012 As at December 31, 2011 Portfolio by Category (%) (%) Consumer Discretionary Consumer Staples Energy Financials Health Care Industrials Information Technology Materials Telecommunication Services Utilities Other Assets and Liabilities Open futures contracts held by the Fund as at December 31, 2012 are shown in Note 4. The accompanying notes are an integral part of the financial statements. 107

108 BlackRock Canada Alpha Advantage Fund (Note 1) Statement of Net Assets As at December Assets Investments - at fair (Note 2) $ 458,253,367 $ 126,698,419 Cash 5,466, ,140 Margin due from brokers 342, ,061 Dividends and distributions from underlying trust units receivable 1,292, ,206 Accounts receivable for investment sales 6,622, ,976, ,240,826 Liabilities Investments sold short (2012 proceeds - $109,071,485, 2011 proceeds - $28,951,476) (Note 2) 106,685,739 28,469,031 Dividends payable on securities sold short 468,595 83,216 Operating expenses payable 18,016 12,323 Payables for investment purchases 6,604, ,777,172 28,564,570 Net Assets $ 358,199,604 $ 99,676,256 Number of Units Issued and Outstanding (Note 8) 32,199,160 9,999,962 Net Assets per Unit $ $ 9.97 Investments at Cost $ 333,566,220 $ 98,822,572 Approved by BlackRock Asset Management Canada Limited, Manager of the Funds Eric Léveillé, Director Noel Archard, Director The accompanying notes are an integral part of the financial statements. 108

109 BlackRock Canada Alpha Advantage Fund (Note 1) Statement of Operations For the Periods Ended December Revenue Dividend income and distributions from underlying trust units $ 8,459,014 $ 634,568 Interest income 16,118 (13,376) Net gain from futures contracts 97,325 15,019 Foreign exchange loss (3,068) (159) 8,569, ,052 Expenses Fund accounting expenses 41,348 4,816 Unitholder communication s Audit fees 13,419 9,040 Securities filing fees 4, Financing charges 394,972 - Independent review committee fees Other operating expenses 1, Dividends from short sales 2,335, ,517 2,791, ,881 Net Investment Income for the Period 5,777, ,171 Gain (Loss) on Investments Net realized gain (loss) on sale of investments 1,973,330 (131,139) Transaction s (Note 2,13) (819,734) (75,214) Net change in unrealized appreciation (depreciation) in of investments 18,594,592 (593,184) Net Gain (Loss) on Investments 19,748,188 (799,537) Increase (Decrease) in Net Assets from Operations $ 25,525,767 $ (323,366) Increase (Decrease) in Net Assets from Operations per Unit $ 1.20 $ (0.03) Statement of Changes in Net Assets For the Periods Ended December Net Assets - Beginning of Period $ 99,676,256 $ - Increase (Decrease) in Net Assets from Operations 25,525,767 (323,366) Capital Transactions Proceeds from issue of units 232,997,581 99,999,622 Reinvestment of distributions 11,366, ,266 Net capital transactions 244,364, ,178,888 Distributions From net investment income (5,593,814) (179,266) From capital gains (5,772,738) - Total distributions (11,366,552) (179,266) Increase in Net Assets for the Period 258,523,348 99,676,256 Net Assets - End of Period $ 358,199,604 $ 99,676,256 The accompanying notes are an integral part of the financial statements. 109

110 BlackRock Canada Alpha Advantage Fund (Note 1) Statement of Cash Flow For the Periods Ended December Cash Used in Operating Activities Net investment income for the years $ 5,777,579 $ 476,171 Changes in Working Capital Balances Relating to Operations Purchase of investment securities* (512,629,140) (54,526,092) Proceeds from disposition of investment securities 303,122,252 25,783,337 Proceeds of investment sold short 224,175,655 34,038,386 Purchase from investment sold short (141,822,486) (5,324,315) Increase in margin due from brokers (118,539) (224,061) Increase in dividends receivable (953,907) (338,206) Increase in dividends payable on securities sold short 385,379 83,216 Increase in accounts receivable for investment sales (6,622,061) - Increase in operating expenses payable 5,693 12,323 Increase in payable for investment purchases 6,604,822 - (127,852,332) (495,412) Net Cash Used in Operating Activities (122,074,753) (19,241) Financing Activities Proceeds from issuance of units* 126,561, ,381 Net Cash Provided by Financing Activities 126,561, ,381 Net Increase in Cash and Cash Equivalent $ 4,486,495 $ 980,140 Cash - Beginning of Period $ 980,140 $ - Cash - End of Period $ 5,466,635 $ 980,140 * Excluding in-kind activity as follows: - Purchase of investment securities (2012, $106,436,333) (2011, $99,000,241) - Proceeds from issuance of units (2012, $106,436,333) (2011, $99,000,241) The accompanying notes are an integral part of the financial statements. 110

111 BlackRock Canada Alpha Advantage Fund / Proceeds received Canadian Common Stocks and Income Trusts-Long Consumer Discretionary 6.4% Aimia, Inc. 311,659 4,170 4,631 Canadian Tire Corp.-Class A 9, Cogeco Cable, Inc. 5, Dollarama, Inc. 47,682 2,725 2,811 Dorel Industries, Inc.-Class B 82,836 2,462 2,974 Linamar Corp. 185,757 3,862 4,306 Magna International, Inc.-Class A 139,042 6,009 6,892 Westport Innovations, Inc. 12, ,439 22,805 Consumer Staples 3.7% Alimentation Couche Tard, Inc.- Class B 112,976 5,078 5,507 Cott Corp. 439,116 3,381 3,513 Jean Coutu Group, Inc.-Class A 223,427 3,247 3,242 Loblaw Cos., Ltd. 23, Metro, Inc.-Class A 1, ,745 13,334 Energy 37.9% Bankers Petroleum, Ltd. 213, Baytex Energy Corp. 123,250 5,976 5,280 Bellatrix Exploration, Ltd. 47, Bonterra Energy Corp Calfrac Well Services, Ltd. 134,785 3,394 3,352 Canadian Natural Resources, Ltd. 401,500 12,999 11,495 Canadian Oil Sands, Ltd. 1, Celtic Exploration, Ltd. 20, Cenovus Energy, Inc. 301,176 10,317 10,026 Cequence Energy, Ltd. 60, Crescent Point Energy Corp. 66,950 2,650 2,511 Deethree Exploration, Ltd. 299,349 1,795 1,946 Enbridge, Inc. 282,784 10,758 12,160 Encana Corp. 68,541 1,501 1,343 Enerflex, Ltd. 152,548 1,897 1,817 Enerplus Corp. 86,936 1,129 1,113 Gibson Energy, Inc. 196,728 4,314 4,716 Imperial Oil, Ltd. 88,844 3,780 3,796 Keyera Corp. 29,817 1,359 1,463 Legacy Oil + Gas, Inc. 639,716 4,923 4,363 Mullen Group, Ltd. 194,108 4,167 4,055 Nexen, Inc. 124,337 2,567 3,304 Niko Resources, Ltd. 14, Parkland Fuel Corp. 182,257 2,853 3,437 Pason Systems, Inc. 99,139 1,400 1,694 Pembina Pipeline Corp. 125,762 3,540 3,575 Petrobakken Energy, Ltd. 353,029 4,621 3,619 / Proceeds received Energy (continued) Petrominerales, Ltd. 141,691 1,357 1,210 Peyto Exploration & Development Corp. 83,715 1,875 1,918 Precision Drilling Corp. 516,890 4,137 4,233 Savanna Energy Services Corp. 198,501 1,342 1,417 ShawCor, Ltd.-Class A 119,483 4,462 4,649 Suncor Energy, Inc. 486,131 15,463 15,897 Surge Energy, Inc. 11, Tourmaline Oil Corp. 2, TransCanada Corp. 244,912 10,795 11,504 Transglobe Energy Corp. 80, Trinidad Drilling, Ltd. 374,631 2,397 2,562 Uranium One, Inc. 107, Whitecap Resources, Inc. 505,018 3,985 4, , ,697 Financials 35.9% Bank of Montreal 85,413 4,949 5,194 Bank of Nova Scotia 334,261 17,755 19,193 Boardwalk REIT 72,466 4,351 4,660 Brookfield Asset Management, Inc.- Class A 48,266 1,696 1,752 Brookfield Properties Co. 300,413 5,036 5,071 Calloway REIT 15, Canadian Imperial Bank of Commerce 45,341 3,450 3,625 Canadian REIT 108,343 4,602 4,685 Canadian Western Bank 16, Davis & Henderson Income Corp. 184,343 3,540 3,961 Dundee Corp.-Class A 133,554 3,172 4,089 Extendicare Inc. 73, fax Financial, Ltd. 5,260 1,902 1,867 Genworth MI Canada, Inc. 192,326 3,903 4,341 Granite Real Estate, Inc. 34,825 1,222 1,314 H&R REIT 64,134 1,532 1,546 Home Capital Group, Inc. 72,059 3,489 4,253 Industrial Alliance Insurance and Financial Services, Inc. 120,338 3,475 3,770 Intact Financial Corp. 94,774 5,678 6,128 Laurentian Bank of Canada 98,023 4,437 4,333 Manulife Financial Corp. 119,503 1,492 1,611 Northern Property Real Estate Investment Trust-REIT 13, Power Corp. of Canada 136,465 3,358 3,451 Royal Bank of Canada 339,523 18,888 20,307 Toronto-Dominion Bank 257,383 20,413 21, , ,579 The accompanying notes are an integral part of the financial statements. 111

112 BlackRock Canada Alpha Advantage Fund / Proceeds received Health Care 2.7% Catamaran Corp. 25,673 1,185 1,197 Valeant Pharmaceuticals International, Inc. 141,290 7,190 8,370 8,375 9,567 Industrials 6.7% Black Diamond Group, Ltd. 195,173 4,207 3,904 Canadian National Railway Co. 56,902 4,857 5,138 Chorus Aviation, Inc. 170, Finning International, Inc. 139,269 3,355 3,420 Progressive Waste Solutions, Ltd. 77,692 1,548 1,666 Stantec, Inc. 36,684 1,293 1,452 Toromont Industries, Ltd. 9, Transcontinental, Inc.-Class A 9, TransForce, Inc. 139,116 2,481 2,760 Vicwest, Inc. 16, Westjet Airlines, Ltd. 231,961 3,608 4,560 22,424 24,068 Information Technology 2.4% Constellation Software, Inc. 27,711 3,225 3,304 MacDonald Dettwiler & Associates, Ltd. 17, Otsuka Corp. 172,078 1,550 1,368 Research In Motion, Ltd. 97, ,146 Sandvine Corp. 94, Wi-Lan, Inc. 389,990 1,941 1,763 8,570 8,699 Materials 23.3% Aecon Group, Inc. 32, Agnico-Eagle Mines, Ltd. 58,756 2,825 3,057 Alacer Gold Corp. 41, Alamos Gold, Inc. 29, Allied Nevada Gold Corp. 6, Aurizon Mines, Ltd. 34, B2Gold Corp. 1,174,077 4,303 4,145 Barrick Gold Corp. 232,908 9,285 8,084 Capstone Mining Corp. 69, CCL Industries-Class B 101,694 3,666 4,322 Centerra Gold, Inc. 228,289 2,672 2,116 Dundee Precious Metals, Inc. 520,772 4,331 4,395 Endeavour Silver Corp. 183,738 1,550 1,435 First Quantum Minerals, Ltd. 112,729 2,291 2,464 Fortuna Silver Mines, Inc. 18, Goldcorp, Inc. 302,564 12,429 11,007 Hudbay Minerals, Inc. 14, Iamgold Corp. 167,978 2,483 1,908 Inmet Mining Corp. 12, / Proceeds received Materials (continued) International Tower Hill Mines, Ltd. 28, Kinross Gold Corp. 583,106 5,429 5,598 Kirkland Lake Gold, Inc. 44, Labrador Iron Ore Royalty Corp. 11, Major Drilling Group International 302,355 3,815 2,951 Methanex Corp. 11, Nevsun Resources, Ltd. 467,683 2,090 1,974 Pan American Silver Corp. 163,985 3,265 3,048 Potash Corp. of Saskatchewan 100,828 4,318 4,071 San Gold Corp. 8, SEMAFO, Inc. 6, Sherritt International Corp. 772,590 3,857 4,388 Silvercorp Metals, Inc. 14, Teck Resources, Ltd. 122,238 4,273 4,407 West Fraser Timber Co., Ltd. 48,576 3,020 3,401 Yamana Gold, Inc. 408,023 6,500 6,953 86,390 83,543 Telecommunication Services 5.8% BCE, Inc. 87,519 3,672 3,728 Rogers Communications, Inc.- Class B 176,680 6,827 7,976 TELUS Corp. 138,929 8,199 9,036 18,698 20,740 Utilities 3.1% Atco, Ltd.-Class I 59,866 4,272 4,806 Canadian Utilities, Ltd.-Class A 72,149 4,789 5,170 Fortis, Inc. 36,485 1,224 1,245 10,285 11,221 Total Canadian Common Stocks and Income Trusts -Long 442, ,253 Canadian Common Stocks and Income Trusts-Short Consumer Discretionary (1.0)% RONA, Inc. (23,873) (274) (255) Shaw Communications, Inc.-Class B (93,295) (1,873) (2,132) Thomson Reuters Corp. (53,398) (1,479) (1,540) (3,626) (3,927) Consumer Staples (0.3)% Maple Leaf Foods, Inc. (629) (7) (7) Saputo, Inc. (18,269) (781) (920) (788) (927) Energy (10.2)% Advantage Oil & Gas, Ltd. (509,988) (1,804) (1,642) AltaGas, Ltd. (16,142) (538) (542) Birchcliff Energy, Ltd. (114,337) (890) (853) Crew Energy, Inc. (135,159) (925) (878) The accompanying notes are an integral part of the financial statements. 112

113 BlackRock Canada Alpha Advantage Fund / Proceeds received Energy (continued) Ensign Resource Service Group, Inc. (218,167) (3,279) (3,362) Freehold Royalties, Ltd. (122,592) (2,429) (2,746) Husky Energy, Inc. (66,566) (1,766) (1,964) MEG Energy Corp. (5,700) (177) (174) Pacific Rubiales Energy Corp. (111,588) (2,575) (2,588) Paramount Resources, Ltd.-Class A (57,099) (1,596) (1,827) Pengrowth Energy Corp. (722,889) (4,532) (3,578) Penn West Petroleum, Ltd. (245,627) (3,316) (2,660) Petrobank Energy & Resources, Ltd. (58,954) (714) (732) Secure Energy Services, Inc. (373,594) (3,555) (3,713) Trican Well Service, Ltd. (280,722) (3,652) (3,686) Trilogy Energy Corp. (65,634) (1,759) (1,921) Veresen, Inc. (303,695) (4,028) (3,596) (37,535) (36,462) Financials (4.9)% AGF Management, Ltd.-Class B (393,241) (4,837) (3,901) Allied Properties Real Estate Investment Trust-REIT (16,620) (528) (549) CI Financial Corp. (40,939) (909) (1,021) Cominar REIT (62,354) (1,400) (1,411) Crombie Real Estate Investment Trust-REIT (144,819) (2,164) (2,143) FirstService Corp. (103,312) (2,853) (2,902) Great-West Lifeco, Inc. (56,234) (1,232) (1,372) IGM Financial, Inc. (73,924) (2,873) (3,082) Primaris Retail REIT (33,462) (824) (902) Sun Life Financial, Inc. (13,284) (353) (351) TMX Group, Ltd. (939) (48) (48) (18,021) (17,682) Health Care (0.4)% CML HealthCare, Inc. (201,864) (1,912) (1,344) (1,912) (1,344) Industrials (2.0)% CAE, Inc. (51,840) (532) (524) Canadian Pacific Railway, Ltd. (6,024) (532) (608) Genivar, Inc. (196,789) (4,240) (3,896) Russel Metals, Inc. (20,800) (574) (574) SNC-Lavalin Group, Inc. (38,697) (1,467) (1,562) (7,345) (7,164) Information Technology (1.7)% Celestica, Inc. (388,983) (2,811) (3,151) CGI Group, Inc.-Class A (108,868) (2,549) (2,501) Open Text Corp. (7,019) (388) (390) (5,748) (6,042) / Proceeds received Materials (6.1)% Banro Corp. (65,255) (291) (182) Canfor Corp. (223,357) (3,226) (3,717) Colossus Minerals, Inc. (393,815) (1,868) (1,819) First Majestic Silver Corp. (114,879) (2,009) (2,306) Franco-Nevada Corp. (500) (28) (28) Gabriel Resources, Ltd. (134,396) (458) (319) Gammon Gold, Inc. (458,659) (3,538) (3,756) Guyana Goldfields, Inc. (129,885) (497) (407) Harry Winston Diamond Corp. (283,490) (3,653) (3,963) Lundin Mining Corp. (83,097) (417) (425) North American Palladium, Ltd. (4,890) (12) (7) Northern Dynasty Minerals, Ltd. (261,515) (1,660) (837) Premier Gold Mines, Ltd. (30,776) (183) (130) Pretium Resources, Inc. (208,742) (2,792) (2,739) Rubicon Minerals Corp. (184,772) (621) (473) Tahoe Resources, Inc. (1,710) (30) (31) Thompson Creek Metals Co., Inc. (50,185) (238) (208) Turquoise Hill Resources, Ltd. (46,980) (342) (358) (21,863) (21,705) Telecommunication Services (0.9)% Bell Aliant, Inc. (120,666) (3,198) (3,182) Manitoba Telecom Services, Inc. (1,623) (55) (53) (3,253) (3,235) Utilities (2.3)% Algonquin Power & Utilities Corp. (9,690) (65) (66) Atlantic Power Corp. (335,840) (4,451) (3,812) Just Energy Group, Inc. (2,300) (22) (22) Northland Power, Inc. (61,707) (1,081) (1,159) TransAlta Corp. (207,452) (3,362) (3,138) (8,981) (8,197) Total Canadian Common Stocks and Income Trusts-Short (109,072) (106,685) Transaction Costs (Note 2) (306) Total Investments 333, ,568 Other Assets and Liabilities 1.9% 6,632 Net Assets 358,200 The accompanying notes are an integral part of the financial statements. 113

114 BlackRock Canada Alpha Advantage Fund Portfolio Concentration (as a percentage of Net Assets) As at December 31, 2012 As at December 31, 2011 Portfolio by Category (%) (%) Long Positions Consumer Discretionary Consumer Staples Energy Financials Health Care Industrials Information Technology Materials Telecommunication Services Utilities Short Positions Consumer Discretionary (1.0) (1.8) Consumer Staples (0.3) (1.4) Energy (10.2) (9.3) Financials (4.9) (3.3) Health Care (0.4) (0.9) Industrials (2.0) (1.9) Information Technology (1.7) (0.4) Materials (6.1) (5.9) Telecommunication Services (0.9) (0.3) Utilities (2.3) (3.4) Other Assets and Liabilities Open futures contracts held by the Fund as at December 31, 2012 are shown in Note 4. The accompanying notes are an integral part of the financial statements. 114

115 BlackRock Canada Universe Bond Index Fund Statement of Net Assets As at December Assets Investments - at fair (Note 2) $ 6,631,029,849 $ 7,221,057,839 Cash 10,551,155 35,610,650 Interest receivable 39,627,817 47,815,230 Securities lending income receivable 26,798 27,974 Accounts receivable from issue of units 13,560,119 6,551,277 Accounts receivable for investment sales 91,153, ,588,327 6,785,949,485 7,419,651,297 Liabilities Operating expenses payable 101, ,970 Payables for redemption of units 99,895, ,356,168 Payables for investment purchases 12,162,552 4,333, ,159, ,804,386 Net Assets $ 6,673,790,091 $ 7,266,846,911 Net Assets per Class Class A $ 2,765,629,814 $ 4,103,845,024 Class D 3,908,160,277 3,163,001,887 $ 6,673,790,091 $ 7,266,846,911 Number of Units Issued and Outstanding (Note 8) Class A 100,530, ,631,238 Class D 166,129, ,366,427 Net Assets per Unit Class A $ $ Class D $ $ Investments at Cost $ 6,247,376,270 $ 6,712,786,602 Approved by BlackRock Asset Management Canada Limited, Manager of the Funds Eric Léveillé, Director Noel Archard, Director The accompanying notes are an integral part of the financial statements. 115

116 BlackRock Canada Universe Bond Index Fund Statement of Operations For the Years Ended December Revenue Interest income $ 253,328,416 $ 306,699,081 Securities lending income 330, , ,658, ,979,574 Expenses Custodian fees 168, ,688 Fund accounting expenses 210, ,632 Unitholder communication s 4, Audit fees 17,771 25,814 Securities filing fees 110, ,323 Independent review committee fees 3,089 8,520 Other operating expenses 11,269 6, , ,034 Net Investment Income for the Year 253,131, ,394,540 Gain (Loss) on Investments Net realized gain on sale of investments 119,227,345 76,271,805 Net change in unrealized appreciation (depreciation) in of investments (124,617,658) 328,706,220 Net Gain (Loss) on Investments (5,390,313) 404,978,025 Increase in Net Assets from Operations $ 247,741,170 $ 711,372,565 Increase in Net Assets from Operations per Class Class A $ 123,845,606 $ 432,696,435 Class D 123,895, ,676,130 $ 247,741,170 $ 711,372,565 Increase in Net Assets from Operations per Unit Class A $ 0.96 $ 2.33 Class D $ 0.83 $ 2.03 The accompanying notes are an integral part of the financial statements. 116

117 BlackRock Canada Universe Bond Index Fund Statement of Changes in Net Assets For the Years Ended December Fund Class A Class D Net Assets - Beginning of Year $ 7,266,846,911 $ 7,293,742,380 $ 4,103,845,024 $ 4,598,904,894 $ 3,163,001,887 $ 2,694,837,486 Increase in Net Assets from Operations 247,741, ,372, ,845, ,696, ,895, ,676,130 Capital Transactions Proceeds from issue of units 1,270,020,035 1,502,180, ,995, ,788,117 1,037,024, ,391,888 Reinvestment of distributions 376,409, ,008, ,809, ,861, ,600, ,147,493 Redemption of units (2,110,818,025) (2,240,448,039) (1,695,056,490) (1,724,544,422) (415,761,535) (515,903,617) Net capital transactions (464,388,809) (359,259,402) (1,282,251,758) (696,895,166) 817,862, ,635,764 Distributions From net investment income (253,113,292) (306,379,648) (117,369,138) (184,606,840) (135,744,154) (121,772,808) From capital gains (96,640,335) (57,835,200) (40,946,276) (33,180,524) (55,694,059) (24,654,676) From capital gains redemption in kind (Note 9) (26,655,554) (14,793,784) (21,493,644) (13,073,775) (5,161,910) (1,720,009) Total distributions (376,409,181) (379,008,632) (179,809,058) (230,861,139) (196,600,123) (148,147,493) Increase (Decrease) in Net Assets for the Year (593,056,820) (26,895,469) (1,338,215,210) (495,059,870) 745,158, ,164,401 Net Assets - End of Year $ 6,673,790,091 $ 7,266,846,911 $ 2,765,629,814 $ 4,103,845,024 $ 3,908,160,277 $ 3,163,001,887 The accompanying notes are an integral part of the financial statements. 117

118 BlackRock Canada Universe Bond Index Fund Par (in 000s) Fixed Income Investments Government Federal Non-Agency 28.5% Government of Canada 1.00% February 01, ,808 29,840 29, % March 01, ,967 43,798 44, % May 01, ,284 46,942 47, % June 01, ,451 43,220 41, % June 01, ,767 72,627 72, % August 01, ,568 71,775 71, % November 01, ,287 43,192 43, % December 01, ,801 77,622 79, % February 01, ,321 68,152 68, % June 01, ,031 47,809 48, % June 01, ,391 53,009 54, % August 01, ,114 39,392 39, % December 01, ,853 62,546 63, % February 01, ,149 22,128 22, % June 01, ,206 49,456 51, % June 01, ,640 48,783 50, % September 01, ,652 51,487 51, % March 01, ,856 47,196 47, % June 01, ,647 56,267 56, % September 01, ,550 44,758 44, % March 01, ,904 14,839 14, % June 01, ,165 58,233 59, % June 01, ,164 91,902 95, % June 01, ,678 72,443 78, % March 15, % June 01, ,042 1,643 1, % June 01, ,738 62,170 63, % June 01, ,650 1, % June 01, ,430 60,613 61, % June 01, ,234 19,096 20, % June 01, ,394 21,608 21, % June 01, ,562 18,081 20, % June 01, ,390 24,507 28, % June 01, ,211 65,818 79, % June 01, ,310 74,275 88, % June 01, ,855 80,138 94, % June 01, ,164 95, , % December 01, ,644 40,323 42,391 1,824,101 1,902,840 Federal Agency 11.6% Asian Development Bank, Series MPLE, Senior Unsecured Note 4.65% February 16, ,106 5,199 5,960 Canada Housing Trust 2.20% March 15, ,335 35,697 36, % June 15, ,002 46,994 46, % September 15, ,258 39,216 39, % December 15, ,798 36,075 36, % March 15, ,761 32,471 33, % June 15, ,060 30,966 31, % December 15, ,345 44,045 47, % March 15, ,349 27,190 30, % December 15, ,679 24,016 25,823 Canada Housing Trust No % December 15, ,390 32,469 33, % December 15, ,062 31,150 32,008 Par (in 000s) Federal Agency (continued) 2.75% June 15, ,640 71,031 73, % December 15, ,226 57,818 57, % June 15, ,929 57,524 57, % December 15, ,644 53,595 53, % June 15, ,577 40,909 44, % March 15, ,483 35,953 36, % December 15, ,840 24,924 25,005 Canada Post Corp. 4.08% July 16, ,283 3,307 3, % July 16, ,883 1,882 2,364 Farm Credit Canada 4.55% April 12, Inter-American Development Bank, Note 4.40% January 26, ,408 7,135 8,427 Royal Office Finance LP, Series A, Note 5.21% November 12, ,253 7,196 8,604 South Coast British Columbia Transportation Authority 3.80% November 02, % June 20, ,423 1,610 1, % February 09, , , ,693 Government Guaranteed 0.1% Milit-Air, Inc., Secured Note 5.75% June 30, ,194 4,405 4,659 4,405 4,659 Municipal 2.0% Alberta Capital Finance Authority, Note 3.05% June 15, ,632 4,621 4, % June 15, ,934 3,952 4, % June 15, ,445 5,036 4,993 City of Montreal 4.95% December 10, ,635 4,970 4, % December 01, % December 01, ,139 3,652 3, % December 01, ,679 2,660 2, % June 01, ,224 4,396 5,740 City of Ottawa 4.60% July 14, ,368 1,516 1,554 City of Toronto 4.55% May 20, % July 28, ,394 4,463 4, % June 27, ,008 1, % December 02, ,032 1,034 1, % July 26, ,464 1,858 1, % December 06, ,629 5,714 5, % June 01, ,660 3,646 4, % June 10, ,759 2,747 3,162 City of Winnipeg 9.13% May 12, ,372 4,532 3,948 The accompanying notes are an integral part of the financial statements. 118

119 BlackRock Canada Universe Bond Index Fund Par (in 000s) Municipal (continued) Municipal Finance Authority of British Columbia 4.90% December 02, ,062 1, % April 19, ,388 7,486 8, % June 01, ,435 9,422 9, % December 01, % April 23, ,469 2,774 2, % June 03, ,992 9,259 10, % June 01, ,033 1,031 1, % June 01, ,861 1,865 2, % June 01, ,692 4,879 4, % December 01, ,951 1,944 2,288 Peel Regional Municipality 5.10% June 29, ,018 3,046 3, % October 30, ,877 1,866 1,897 PSP Capital, Inc. 2.94% December 03, ,737 7,734 7, % February 16, ,818 2,817 2,849 Regional Municipality of Halton 4.05% October 11, Regional Municipality of York 7.25% June 19, ,177 3,810 3, % April 29, ,173 2,489 2, % June 30, ,256 2,291 2, % June 30, ,586 5,867 6, % November 18, Ville Montreal 5.00% December 01, , ,669 Provincial 27.9% Centre Hospitalier de L universite de Montreal 4.45% October 01, ,445 1,445 1,545 City of Toronto 3.80% December 13, ,000 1,992 1,992 Financement-Quebec 4.25% March 01, ,490 8,893 8, % June 01, ,514 6,681 6, % December 01, ,540 9,217 9, % December 01, ,110 9,629 9, % December 01, ,239 9,186 9, % December 01, ,339 8,331 8, % December 01, ,248 12,248 12, % June 01, ,076 9,843 11,205 Hydro Quebec 9.63% July 15, ,425 6,407 6, % February 15, ,030 14,803 15,804 Hydro Quebec, (MTN) 6.00% February 15, ,551 7,803 9,296 Hydro Quebec, Series 19, Note 6.50% February 15, ,566 15,681 18,128 Hydro Quebec, Series HL, Note 11.00% August 15, ,221 22,712 22,505 Hydro Quebec, Series JM, Note 5.00% February 15, ,244 7,442 9,306 Par (in 000s) Provincial (continued) Ontario Electricity Financial Corp., Note 8.25% June 22, ,427 10,734 11,537 Province of Alberta 2.75% December 01, ,164 4,344 4, % September 01, ,433 3,428 3, % June 15, ,420 6,422 6, % December 01, ,467 6,649 7, % December 15, ,198 8,177 8, % December 01, ,377 4,359 5,396 Province of British Columbia 7.50% June 09, ,521 3,048 2, % June 18, ,053 1, % June 18, ,722 8,220 8, % December 01, ,731 2,755 3, % June 17, % December 18, ,097 9,216 10, % December 18, ,786 10,750 11, % May 15, ,543 5,362 5, % December 18, ,736 9,820 10, % December 18, ,334 5,337 5, % September 08, ,079 2,779 3, % August 23, ,944 4,326 4, % November 19, ,348 1, % June 18, ,259 14,133 14, % June 18, ,124 10,657 13, % June 18, ,667 3,439 3, % June 18, ,768 7,688 9, % June 18, ,224 19,027 21,610 Province of British Columbia, Unsecured Note 3.20% June 18, ,000 2,971 2,954 Province of British Columbia, (MTN) 4.65% December 18, ,248 11,603 12, % June 18, ,647 9,898 12,417 Province of Manitoba 4.80% December 03, ,162 4,356 4, % March 01, ,325 6,663 6, % June 01, ,708 5,701 5, % June 03, ,728 2,723 3, % December 01, ,759 2,757 3, % December 22, ,082 5,164 6, % March 05, ,023 6,863 8, % March 05, ,348 5,222 6, % March 05, ,539 4,426 5, % March 05, ,012 5,731 6, % March 05, ,378 2,782 2, % March 05, ,383 1,376 1,391 Province of Manitoba, (MTN) 6.50% September 22, ,261 7,265 7, % November 15, ,975 2,357 2, % September 05, ,263 3,275 3,725 Province of New Brunswick 4.50% February 04, ,708 2,921 2, % December 03, ,111 3,338 3, % July 21, ,634 2,876 2, % December 27, ,580 3,901 4, % March 26, ,694 5,681 6, % June 03, ,826 4,932 5,441 The accompanying notes are an integral part of the financial statements. 119

120 BlackRock Canada Universe Bond Index Fund Par (in 000s) Provincial (continued) 4.50% June 02, ,950 9,150 10, % December 03, ,065 8,197 8, % June 02, ,939 1,932 1, % December 27, ,854 3,694 3, % September 26, ,126 4,844 6, % March 26, ,222 4,944 6, % September 26, ,595 5,510 6, % June 03, ,757 5,825 5, % June 03, ,469 2,461 2,499 Province of Newfoundland 5.25% June 04, ,409 3,619 3, % April 15, ,941 4,608 4, % April 17, ,902 2,611 2, % October 17, ,427 2,067 2, % October 17, ,008 5,095 6, % October 17, ,606 6,355 8,095 Province of Nova Scotia 4.60% August 18, % September 08, ,416 30,308 30, % November 25, ,221 5,489 5, % June 01, ,337 7,320 8, % December 01, ,482 2,146 2, % June 01, ,975 2,348 2, % June 01, ,916 3,719 4, % June 01, ,667 3,594 4, % June 01, ,901 5,406 5, % June 02, ,152 45,499 46, % June 02, ,457 5,435 5,565 Province of Nova Scotia, (MTN) 5.80% June 01, ,963 3,887 3,992 Province of Nova Scotia, Series 9Z 6.60% June 01, ,975 2,701 2,747 Province of Ontario 5.00% March 08, ,234 35,831 34, % September 08, ,153 16,521 16, % March 08, ,461 17,484 17, % September 08, ,331 12,649 12, % March 08, ,423 16,521 17, % September 08, ,463 6,447 6, % March 08, ,031 30,246 33, % March 08, ,743 17,608 18, % June 02, ,859 42,669 44, % June 02, ,731 48,189 52, % June 02, ,592 53,147 54, % June 02, ,759 61,698 62, % June 02, ,500 13,490 13, % September 08, ,167 9,590 10, % February 07, ,408 1, % December 02, ,505 6,206 7, % June 02, % June 02, ,308 22,848 26, % March 08, ,034 32,181 36, % June 02, ,264 14,609 17, % March 08, ,449 25,396 29, % June 02, ,353 27,453 32, % June 02, ,172 31,070 37, % June 02, ,083 54,568 63,817 Par (in 000s) Provincial (continued) Province of Ontario, (MTN) 5.50% June 02, ,616 4,958 5, % June 02, ,469 2,894 2, % June 02, ,439 30,638 36,668 Province of Ontario, Series HC 9.50% July 13, ,152 8,942 9,563 Province of Prince Edward Island 4.25% September 24, % July 29, ,321 1,391 1, % June 15, ,050 2,239 2, % November 19, , % May 19, ,767 1,755 2, % June 27, ,185 1,182 1,198 Province of Quebec 5.50% December 01, ,384 17,239 16, % December 01, ,601 15,437 16, % December 01, ,772 15,609 16, % December 01, ,683 29,456 32, % December 01, ,747 24,833 26, % December 01, ,161 33,686 36, % December 01, ,909 35,032 36, % December 01, ,331 36,388 37, % January 16, ,537 5,094 5, % June 01, ,753 4,554 4, % April 01, ,627 7,678 8, % October 01, ,403 12,736 15, % June 01, ,296 21,501 25, % December 01, ,726 22,003 25, % December 01, ,834 23,966 28, % December 01, ,298 42,130 49, % December 01, ,051 34,177 35,334 Province of Quebec, Senior Unsecured Note 3.00% September 01, ,500 8,491 8,515 Province of Quebec, (MTN) 4.50% December 01, ,708 16,702 18,862 Province of Saskatchewan 4.65% September 05, ,644 2,660 2, % July 28, ,540 2,533 2, % February 04, ,673 2,433 2, % September 05, ,798 9,003 11, % September 05, ,368 1, % September 05, ,427 1,727 1, % March 05, ,975 2,583 2, % June 01, ,738 6,253 7, % February 03, ,483 3,532 3,605 1,712,398 1,862,172 Total Government 4,420,777 4,683,033 Corporate 29.2% 407 East Development Group General Partnership 2.81% December 18, ,482 1,482 1, International, Inc., (MTN) 3.88% June 16, ,888 3,920 4, % November 24, ,561 1,561 1,664 The accompanying notes are an integral part of the financial statements. 120

121 BlackRock Canada Universe Bond Index Fund Par (in 000s) Corporate (continued) 4.99% June 16, ,649 1,672 1, % May 26, ,510 2,532 2, % November 15, ,803 2,981 3, % April 25, ,371 2,368 2, International, Inc., Series 04A3 5.96% December 03, ,975 2,528 2, International, Inc., Series 06D1, Note 5.75% February 14, ,888 5,188 6, International, Inc., Series 99A2, Senior Note 6.47% July 27, ,142 3,389 4,215 Aeroports de Montreal 5.17% September 17, ,796 4,563 5, % October 16, ,905 4,015 5, % April 16, ,252 Aimia, Inc. 4.35% January 22, ,000 1,996 1,993 Aimia, Inc., (MTN) 5.60% May 17, ,284 1,283 1,346 Alimentation Couche Tard, Inc. 2.86% November 01, ,963 2,963 2, % November 01, ,778 1,778 1, % November 01, ,975 1,975 1,987 Alliance Pipeline, LP 4.93% December 16, ,975 2,180 2,167 Alliance Pipeline, LP, Senior Note 5.55% December 31, , % December 31, ,522 2,731 3,042 AltaGas Income Trust 5.49% March 27, ,073 1,073 1,191 AltaGas, Ltd. 7.42% April 29, ,235 1,362 1,314 AltaGas, Ltd., (MTN) 4.10% March 24, ,159 1,159 1, % January 15, % January 17, ,778 1,778 1, % June 01, ,185 1,185 1,247 AltaLink Investments, LP 3.67% June 05, ,975 1,975 1,988 AltaLink, LP 5.38% March 26, ,224 AltaLink, LP, (MTN) 5.24% May 29, ,653 2,782 3, % November 28, ,000 1, % November 15, ,076 1,056 1, % November 08, ,975 2,180 2, % June 30, ,012 American Express Canada (MTN) 4.85% October 03, ,112 5,114 5,382 American Express Canada, Guaranteed Note, (MTN) 3.60% June 03, ,876 3,900 4,050 AON Finance NS1 ULC 4.76% March 08, ,675 1,693 1,795 Par (in 000s) Corporate (continued) Arrow Lakes Power 5.52% April 05, ,948 1,948 2,261 Bank of Montreal 3.93% April 27, ,269 9,269 9, % October 05, ,902 7,903 7, % March 10, ,633 6,646 6, % June 10, ,518 8,535 8, % August 02, ,335 11,383 11, % July 12, ,210 7,210 7, % July 17, ,077 1,179 1, % December 11, ,000 8,998 8, % March 28, 2023 (1) 2,501 2,395 2, % September 10, ,252 3,329 3,715 Bank of Montreal, (MTN) 3.98% July 08, 2021 (1) 8,708 8,708 9,200 Bank of Montreal, DPNT 5.18% June 10, ,392 6,505 6, % May 02, ,122 8,425 9,574 Bank of Montreal, Series C, Subordinated Note 4.87% April 22, 2020 (1) 1,241 1,150 1,321 Bank of Nova Scotia 3.43% July 16, ,232 6,346 6, % November 18, ,280 8,332 8, % March 25, ,539 6,549 6, % May 08, ,346 8,379 8, % February 22, ,310 8,329 8, % December 01, ,035 7,035 7, % February 27, ,396 8,396 8, % June 08, ,848 6,884 7, % April 15, 2019 (1) 5,260 5,426 5, % January 22, 2021 (1) 4,972 5,102 5, % October 18, 2024 (1) 9,877 9,877 9,982 Bank of Nova Scotia, (MTN) 2.90% August 03, 2022 (1) 8,240 8,240 8,389 Bank of Nova Scotia, Note 8.90% June 20, ,363 1,795 2,100 BC Tel, Note 9.65% April 08, ,407 4,970 4,990 BC Tel, Series 3, Note 10.65% June 19, ,015 2,900 3,065 BCIMC Realty Corp. 2.65% June 29, ,210 3,209 3, % March 07, ,951 3,953 4, % June 29, ,482 1,482 1,512 BCIMC Realty Corp., (MTN) 5.65% January 05, ,850 3,069 3,272 Bell Aliant Regional Communications, LP, (MTN) 4.95% February 26, ,975 2,063 2, % February 17, ,584 2,640 2, % September 13, ,751 2,750 2, % April 26, ,947 1,947 2, % February 26, ,728 2,744 3,034 Bell Aliant Regional Communications, Note 5.41% September 26, ,263 3,351 3,562 The accompanying notes are an integral part of the financial statements. 121

122 BlackRock Canada Universe Bond Index Fund Par (in 000s) Corporate (continued) Bell Canada 3.60% December 02, ,252 7,240 7, % May 19, ,975 2,075 2, % March 16, ,364 10,425 11, % June 18, ,148 4,141 4,271 Bell Canada, (MTN) 4.85% June 30, ,360 8,567 8,729 Bell Canada, Note, (MTN) 7.85% April 02, ,944 4,458 5, % February 23, ,733 4,221 4,974 Bell Canada, Series M % March 16, ,988 5,653 6,064 BMO Capital Trust 5.47% December 31, BMO Capital Trust II, Series A, Note 10.22% December 31, 2107 (1) 4,033 4,454 5,559 BMO Subordinated Notes Trust 5.75% September 26, 2022 (1) 2,963 3,408 3,391 BMW Canada, Inc. 2.76% April 01, ,487 3,494 3, % April 01, % May 26, ,000 2,999 2, % November 27, ,000 2,000 1,998 Borealis Infrastructure Trust, Series N, Secured Note 6.35% December 01, ,222 3,606 3,666 British Columbia Ferry Services, Inc., Series 08-1, Senior Secured Note 5.58% January 11, ,931 2,905 3,565 British Columbia Ferry Services, Inc., Series B, Senior Secured Note 6.25% October 13, ,749 3,010 3,564 Broadcast Centre Trust, Secured Note 7.53% May 01, ,489 3,195 3,314 Broadway Credit Card Trust, Series A, Note 4.80% March 17, ,526 4,399 4,690 Brookfield Asset Management, Inc. 8.95% June 02, % April 25, ,407 2,522 2,612 Brookfield Asset Management, Inc., (MTN) 3.95% April 09, ,975 1,975 2, % March 01, ,843 3,858 4,246 Brookfield Asset Management, Inc., Note 5.95% June 14, ,832 1,693 1,824 Brookfield Power Corp. 5.25% November 05, ,321 2,465 2, % November 05, Brookfield Renewable Power, Inc., (MTN) 6.13% November 30, ,146 1,276 1, % October 13, ,149 3,206 3,434 Par (in 000s) Corporate (continued) BRP Finance ULC, (MTN) 4.79% February 07, ,748 1,748 1,848 Cadillac view Finance Trust 3.24% January 25, ,371 8,371 8, % May 09, ,761 5,772 6, % January 25, ,232 9,271 10,340 Caisse Centrale Desjardins du Quebec 3.79% June 08, ,449 2,473 2, % October 17, ,939 4,955 4, % October 05, ,643 3,685 3,827 Calloway Real Estate Investment Trust 5.37% October 12, Cameco Corp. 4.70% September 16, ,441 2,452 2, % September 02, ,309 4,513 4, % November 14, ,432 1,432 1, % November 14, ,963 2,962 2,952 Canadian Credit Card TST 2.31% April 24, ,800 1,800 1, % July 24, ,687 5,687 5,916 Canadian Imperial Bank of Commerce 3.30% November 19, ,097 5,135 5, % December 22, % March 02, ,533 5,648 5, % May 22, ,939 4,933 4, % January 14, ,496 11,488 11, % November 08, ,285 13,280 13, % July 14, ,637 8,810 9, % October 18, ,739 8,747 8, % April 30, 2020 (1) 8,728 8,728 9, % November 02, 2020 (1) 7,780 7,767 7,991 Canadian Imperial Bank of Commerce, (MTN) 6.00% June 06, 2023 (1) Canadian Imperial Bank of Commerce, DPNT, Note 4.95% January 23, ,962 5,300 5,142 Canadian Natural Resources, Ltd., (MTN) 4.95% June 01, ,393 3,648 3, % June 19, ,457 3,455 3,499 Canadian Pacific RR Co., (MTN) 6.45% November 17, ,231 3,371 3,971 Canadian Pacific RR Co., Senior Unsecured Note, (MTN) 6.25% June 01, ,331 6,287 7,348 Canadian Tire Corp., Ltd. (MTN) 4.95% June 01, ,064 1, % June 01, ,167 1,177 1, % February 24, ,943 2,918 3,369 Canadian Utilities, Ltd., Series % May 01, ,165 3,029 3,320 The accompanying notes are an integral part of the financial statements. 122

123 BlackRock Canada Universe Bond Index Fund Par (in 000s) Corporate (continued) Canadian Western Bank 2.38% September 14, % January 18, ,241 1,241 1, % November 30, 2020 (1) 2,850 2,850 2, % December 17, 2024 (1) 1,800 1,800 1,801 Capital City Link General Partnership 4.39% March 31, ,000 2,000 2,064 Capital Desjardins, Inc. 5.76% April 01, 2019 (1) 3,546 3,591 3, % May 05, ,984 10,984 12, % November 23, 2020 (1) 4,069 4,069 4, % June 01, 2021 (1) 2,688 2,938 2,964 Capital Power, LP, (MTN) 4.60% December 01, ,754 1,753 1, % February 21, ,284 1,283 1, % November 16, ,617 1,617 1,669 Cards II Trust 3.10% September 15, ,216 5,222 5, % May 15, ,024 4,024 4,198 Caterpillar Financial Services, Ltd. 2.20% June 01, ,173 2,173 2, % June 01, ,001 CDP Financial, Inc. 4.60% July 15, ,476 6,576 7,339 Centre Street Trust 3.69% June 14, ,482 1,482 1,479 Centre Street Trust, Secured Note 3.69% June 14, ,077 1,077 1,076 CI Investments, Inc. 3.94% December 14, 2016 (1) 3,704 3,713 3,844 CIBC Capital Trust 10.25% June 30, 2108 (1) 2,376 3,164 3, % June 30, 2108 (1) 8,403 9,668 11,199 Co-Operators Financial Services 5.78% March 10, ,356 1,356 1,474 Cogeco Cable, Inc. 5.95% June 09, % November 16, ,368 1,365 1,450 Cominar REIT 4.27% June 15, Cominar REIT, Senior Unsecured Note 4.23% December 04, Consumers Waterheater, Inc. 6.75% April 30, ,577 2,573 2,688 CU, Inc. 4.54% October 24, ,786 3,878 4, % September 10, ,469 2,469 2, % November 18, ,172 1,172 1, % October 24, ,284 1,284 1, % September 11, ,383 1,383 1,373 CU, Inc., (MTN) 5.10% November 18, ,411 1,546 1, % August 13, ,353 5,046 5, % November 21, ,067 3,020 3, % May 26, ,057 1,085 1, % March 07, ,955 2,462 2,804 Par (in 000s) Corporate (continued) CU, Inc., Note 6.15% November 22, ,916 2,132 2,263 CU, Inc., Note, (MTN) 5.56% October 30, Daimler Canada Finance, Inc. 3.16% April 14, ,148 3,148 3, % January 07, ,457 3,457 3, % September 14, ,270 2,273 2, % September 15, Eagle Credit Card Trust 3.47% December 17, ,633 2,633 2,742 Emera, Inc., (MTN) 4.10% October 20, ,005 2,006 2, % December 13, ,272 2,309 2, % December 02, ,141 2,139 2,361 Empire Life Insurance 6.73% May 20, 2019 (1) 1,954 2,143 2,062 Enbridge Gas Distribution, Inc., (MTN) 5.16% September 24, ,393 2,428 2, % November 23, ,316 1,315 1, % November 22, ,246 2,241 2,734 Enbridge Gas Distribution, Inc., Note, (MTN) 4.77% December 17, ,371 2,702 2, % February 25, ,482 1,797 1,792 Enbridge Income Fund, Inc., (MTN) 4.10% February 22, ,482 1,479 1, % February 22, ,222 2,219 2,390 Enbridge Pipelines, Inc. 5.35% November 10, ,955 1,953 2,454 Enbridge Pipelines, Inc., (MTN) 6.62% November 19, ,382 1,714 1, % November 17, ,975 5,688 6, % April 06, ,074 2,247 2,591 Enbridge Pipelines, Inc., Note, (MTN) 5.08% December 19, ,482 1,630 1,768 Enbridge, Inc. 4.53% March 09, ,152 5,154 5, % December 05, ,800 1,799 1,786 Enbridge, Inc., (MTN) 5.17% May 19, ,013 4,186 4, % August 09, ,075 1,134 1, % September 02, ,334 3,336 3, % June 18, ,638 5,371 6, % August 27, ,975 1,974 2,000 Encana Corp., (MTN) 5.80% January 18, ,430 5,507 6,153 Enercare Solutions, Inc. 4.30% November 30, ,500 1,499 1,517 Enersource Corp. 4.52% April 29, ,466 1,466 1, % April 29, ,087 1,087 1,344 Enmax Corp. 6.15% June 19, ,713 1,971 1,962 The accompanying notes are an integral part of the financial statements. 123

124 BlackRock Canada Universe Bond Index Fund Par (in 000s) Corporate (continued) EPCOR Utilities, Inc. 6.80% June 28, EPCOR Utilities, Inc., (MTN) 5.65% November 16, ,554 2,499 3, % April 15, ,404 1,636 1, % November 24, ,954 2,140 2, % February 28, ,472 2,499 2,624 fax Financial, Ltd. 7.25% June 22, ,955 1,955 2, % May 25, ,531 1,526 1,665 Fifth Avenue, LP 4.71% August 05, ,454 3,454 3,700 Finning International, Inc., (MTN) 5.08% June 13, ,259 1,259 1,310 First Capital Realty, Inc. 5.48% July 30, ,954 1,956 2, % April 30, % December 05, First Capital Realty, Inc., Series E, Note, (MTN) 5.36% January 31, ,624 2,584 2,710 Ford Credit Canada, Ltd. 4.88% March 17, ,766 2,881 2, % August 18, ,062 3,431 3, % February 08, ,260 3,464 3, % December 19, ,700 3,698 3,691 FortisAlberta, Inc. 7.06% February 14, ,511 1,509 FortisAlberta, Inc., (MTN) 5.85% April 15, % October 30, ,767 1,776 2, % October 18, , % January 03, ,256 1,255 1, % October 27, ,161 FortisAlberta, Inc., Senior Note 6.22% October 31, ,821 1,971 2,455 FortisBC, Inc., (MTN) 6.10% June 02, % November 24, ,049 1,163 FortisBC, Inc., Note 5.60% November 09, ,481 1,472 1,844 Gaz Metro, Inc., Guaranteed Note 5.45% July 12, ,306 3,850 3,958 Gaz Metro, LP, Secured Note, Series I (MTN) 7.05% October 30, Gaz Metro, LP, Series D, Note 10.45% October 31, ,594 5,155 4,640 GE Capital Canada Funding Co. 2.95% February 10, ,954 1,952 1,983 GE Capital Canada Funding Co., (MTN) 4.40% June 01, ,680 8,536 9, % June 08, ,108 5,137 5, % November 23, ,707 4,701 4, % August 17, ,515 16,062 17, % June 11, ,975 1,971 2,051 Par (in 000s) Corporate (continued) 5.68% September 10, ,040 1, % January 26, ,469 2,468 2, % October 22, ,399 7,301 9,130 GE Capital Canada Funding Co., Note, (MTN) 4.55% January 17, Genworth MI Canada, Inc. 4.59% December 15, ,322 1,322 1,358 George Weston, Ltd. 5.05% March 10, ,344 2,470 2, % March 01, ,106 1,130 George Weston, Ltd., (MTN) 3.78% October 25, ,025 2,037 2, % February 05, ,079 1,145 Glacier Credit Card Trust 3.16% November 20, % April 20, ,655 3,655 3,662 Golden Credit Card Trust 3.51% May 15, ,051 13,051 13,693 Great-West Lifeco Finance Delaware, LP II 7.13% June 26, 2068 (1) 2,648 3,001 3,147 Great-West Lifeco Finance Delaware, LP, Subordinated Note 5.69% June 21, 2067 (1) 5,261 5,128 5,785 Great-West Lifeco, Inc. 4.65% August 13, ,241 3,241 3,599 Great-West Lifeco, Inc., Note 6.67% March 21, ,792 4,325 4, % November 16, ,955 1,965 2,436 Great-West Lifeco, Inc., Senior Unsecured Note 6.14% March 21, ,245 2,468 2,623 Greater Toronto Airports Authority 3.04% September 21, ,185 1,185 1,201 Greater Toronto Airports Authority, (MTN) 4.70% February 15, ,819 5,823 6, % June 01, ,792 3,928 4, % April 17, ,257 3,728 3, % June 12, ,166 6,532 8, % June 04, ,493 4,934 6, % February 02, ,062 4,133 4, % June 07, ,833 2,982 3, % February 25, ,537 3,536 4,412 Greater Toronto Airports Authority, Note 6.45% December 03, ,444 3,357 4,523 Greater Toronto Airports Authority, Note, (MTN) 6.45% July 30, ,609 2,002 2,010 H&R REIT 4.78% July 27, ,807 1,811 1,908 Halifax International Airport Authority 4.89% November 15, ,028 2,028 2,410 The accompanying notes are an integral part of the financial statements. 124

125 BlackRock Canada Universe Bond Index Fund Par (in 000s) Corporate (continued) Health Montreal Collective, LP 6.72% September 30, ,961 8,961 10,880 Holcim Finance Canada, Inc., (MTN) 3.65% April 10, ,700 1,699 1,723 Honda Canada Finance, Inc. 2.28% December 11, ,200 2,200 2,190 Hospital Infrastructure Partners NOH Partnership 5.44% January 31, ,864 2,864 3,369 HSBC Bank of Canada 3.86% May 21, ,484 4,483 4, % November 23, ,840 4,840 4, % January 13, ,793 5,793 5, % October 04, ,007 4,007 4, % March 16, 2021 (1) 1,968 2,081 2, % April 10, 2022 (1) 3,423 3,399 3,706 Husky Energy, Inc. 5.00% March 12, ,837 3,915 4,333 Husky Energy, Inc., (MTN) 3.75% March 12, ,026 1,028 1,064 Hydro One, Inc. 4.40% June 01, ,139 2,138 2,408 Hydro One, Inc., (MTN) 3.13% November 19, % September 11, ,396 5,385 5, % October 18, ,176 6,593 7, % January 13, ,618 6,676 6, % January 31, ,052 4,317 5, % May 20, ,984 6,222 7, % March 13, ,482 1,738 1, % March 03, ,243 2,483 3, % July 16, ,132 4,394 5, % September 26, ,877 1,875 2, % October 19, ,805 1,819 2,209 Hydro One, Inc., Note 7.35% June 03, Hydro Ottawa, Inc., Senior Unsecured Note 4.93% February 09, ,873 1,877 1,986 IGM Financial, Inc. 7.35% April 08, ,224 1, % December 10, ,466 1,462 1,693 IGM Financial, Inc., Note 7.00% December 31, ,708 3,134 3, % March 07, ,679 1,980 2,124 Industrial Alliance Capital Trust, Note 5.13% June 30, 2019 (1) 2,815 2,839 2,906 Intact Financial Corp., (MTN) 5.41% September 03, ,973 3,051 3, % August 18, ,580 1,581 1, % November 23, Integrated Team Solutions SJHC Partnership 5.95% November 30, ,172 1,229 1,428 Inter Pipeline Fund, (MTN) 3.84% July 30, ,482 1,554 1, % May 30, ,605 3,605 3,686 Par (in 000s) Corporate (continued) John Deere Canada Funding, Inc., (MTN) 2.25% October 18, John Deere Credit, Inc., (MTN) 1.85% January 24, % June 23, ,466 1,464 1, % October 14, Laurentian Bank of Canada 2.45% February 13, Laurentian Bank of Canada, (MTN) 3.70% November 02, 2020 (1) 2,051 2,046 2,110 Loblaw Cos., Ltd., (MTN) 4.85% May 08, ,717 2,819 2, % June 18, ,529 3,659 4, % February 09, ,865 1,909 2, % March 01, ,117 2,266 2, % February 17, ,981 3,063 3, % January 18, ,270 3,557 3,557 Lower Mattagami Energy, LP 2.23% October 23, % April 23, Manitoba Telecom Services, Inc., (MTN) 6.15% June 10, ,331 2,324 2,466 Manufacturers Life Insurance Co. 4.21% November 18, 2021 (1) 3,274 3,274 3, % June 01, 2022 (1) 3,260 3,260 3,413 Manulife Financial Capital Trust II 7.41% December 31, 2108 (1) 6,037 6,608 7,057 Manulife Finance Delaware 5.06% December 15, 2041 (1) 3,628 3,068 3,341 Manulife Finance Delaware, LP 4.45% December 15, 2026 (1) 1,496 1,521 1,559 Manulife Financial Corp. 7.77% April 08, ,236 3,413 4,049 Manulife Financial Corp., (MTN) 4.90% June 02, ,207 6,360 6, % June 26, ,962 3,149 3, % August 20, ,448 6,451 6, % June 26, ,294 2,296 2,571 Master Credit Card Trust 3.50% May 21, ,636 3,641 3, % January 21, ,050 4,050 4,127 Merrill Lynch Canada Finance Co., (MTN) 5.00% February 18, ,937 3,832 4,054 Metro, Inc., (MTN) 5.97% October 15, ,365 3,287 3,822 Molson Coors Capital Finance, ULC 5.00% September 22, ,877 4,870 5,226 National Bank of Canada 2.23% January 30, ,828 5,828 5, % February 11, ,963 3,048 3, % May 26, ,979 3,979 4, % April 26, ,970 5,970 6, % December 15, ,939 4,970 5, % August 21, ,642 4,683 4,710 The accompanying notes are an integral part of the financial statements. 125

126 BlackRock Canada Universe Bond Index Fund Par (in 000s) Corporate (continued) National Bank of Canada, (MTN) 4.93% December 22, 2019 (1) 4,850 4,966 5, % November 02, 2020 (1) 986 1,051 1, % April 11, 2022 (1) 2,963 2,963 3,052 NAV Canada 4.40% February 18, ,268 1,268 1,428 NAV Canada, (MTN) 4.71% February 24, ,455 2,606 2,668 NAV Canada, Note 7.56% March 01, ,154 4,967 5,338 NBC Asset Trust 7.45% June 30, 2020 (1) 3,470 3,505 4,349 Northwestconnect Group 5.95% April 30, ,912 1,910 2,361 NOVA Gas Transmission, Ltd., Series 21, Note 12.20% February 28, ,386 9,851 8,266 Nova Scotia Power, Inc., (MTN) 5.67% November 14, ,207 1, % July 27, , % June 15, ,838 1,843 2, % March 06, ,117 2,115 2,168 Nova Scotia Power, Inc., Series S, Note, (MTN) 6.95% August 25, ,185 1,646 1,673 Ontario Electricity Financial Corp % October 15, Ontario Electricity Financial Corp., Note 10.00% February 06, ,400 2,131 2,087 Ontario Electricity Financial Corp., Series DJ5, Note 10.00% October 17, ,995 7,947 6,905 Ontario Electricity Financial Corp., Series FV6, Note 8.90% August 18, ,970 6,980 7,484 Ontario School Boards Financing Corp. 5.38% June 25, ,328 5,337 6,089 Ontario School Boards Financing Corp., Note 5.48% November 26, ,740 5,870 6, % April 18, ,351 5,290 5,973 Ontario School Boards Financing Corp., Series 01A2 6.25% October 19, ,224 1,333 1,411 Ottawa MacDonald-Cartier International Airport Authority, Note 4.73% May 02, ,833 2,833 3,120 Pembina Pipeline Corp. (MTN) 4.89% March 29, ,949 1,949 2,152 Plenary Health Bridgepoint, LP 7.25% August 31, ,427 1,898 2,008 Plenary Health Care Partnerships Humber, LP 4.82% November 30, ,851 5,858 6,350 Par (in 000s) Corporate (continued) Plenary Health Hamilton, LP 5.80% May 31, ,400 1,613 1,643 Plenary Properties LTAP, LP 3.80% November 18, ,605 1,666 1, % January 31, ,200 5,503 6,799 Power Corp. Canada 7.57% April 22, ,181 4,407 5, % April 22, ,383 1,498 Power Financial Corp., Note 6.90% March 11, ,800 2,020 2,328 Reliance, LP 4.57% March 15, ,000 1,000 1, % March 15, ,500 1,500 1,511 RioCan Real Estate Investment Trust 4.50% January 21, ,269 1,270 1, % December 13, ,500 1,504 1,495 Rogers Communications, Inc. 5.80% May 26, ,504 6,636 7, % June 06, ,951 3,948 4, % November 04, ,757 1,756 2, % September 29, ,419 4,417 4, % March 22, ,225 9,418 10, % June 06, ,951 3,935 4, % August 25, ,640 6,707 7,794 Rogers Communications, Inc., (MTN) 6.56% March 22, ,222 2,222 2,764 RONA, Inc., Note 5.40% October 20, ,737 2,731 2,890 Royal Bank of Canada 5.00% January 20, ,975 2,080 2, % January 13, ,328 8,323 8, % January 11, ,155 18,144 18, % July 26, ,443 8,440 8, % December 08, ,316 10,324 10, % January 25, ,675 10,671 11, % April 13, ,359 11,357 11, % September 21, ,964 10,964 10, % March 30, ,358 3,552 3, % May 07, ,679 5,679 5, % June 15, 2020 (1) 5,689 5,687 6, % November 02, 2020 (1) 8,621 8,624 8, % December 06, 2024 (1) 8,000 8,000 8, % July 16, ,678 5,946 6,660 Royal Bank of Canada, (MTN) 3.18% March 16, ,051 9,319 9,342 Royal Bank of Canada, Senior Note 4.97% June 05, ,033 5,420 5,278 Royal Bank of Canada, Series 2014, Subordinated Note 5.95% June 18, ,034 6,196 6,379 Score Trust, Series , Note 4.95% February 20, ,321 2,284 2,400 Scotiabank Capital Trust, Series % December 31, 2056 (1) 4,712 4,740 5,713 Scotiabank Tier I Capital Trust 7.80% June 30, 2108 (1) 3,661 3,879 4,628 The accompanying notes are an integral part of the financial statements. 126

127 BlackRock Canada Universe Bond Index Fund Par (in 000s) Corporate (continued) Shaw Communications, Inc. 6.50% June 02, ,577 3,919 3, % October 01, ,364 7,656 8, % December 07, ,759 2,873 3, % November 09, ,997 9,990 11,101 Shaw Communications, Inc., Series N, Senior Note 6.15% May 09, ,768 3,644 4,176 SNC-Lavalin Group, Inc. 6.19% July 03, ,340 3,634 3,831 SNC-Lavalin Innisfree McGill Finance, Inc. 6.63% June 30, ,433 5,451 5,621 Sobeys, Inc., (MTN) 6.64% June 07, ,072 1,071 1,261 SP LP/SP1, LP 3.21% June 15, ,374 3,374 3,402 Sun Life Capital Trust II 5.86% December 31, ,637 2,637 2,886 Sun Life Financial, Inc. 5.70% July 02, ,946 2,077 2, % August 23, ,765 4,763 5, % June 01, 2036 (1) 8,960 9,172 9,474 Sun Life Financial, Inc., (MTN) 7.90% March 31, 2019 (1) 1,879 2,025 2, % March 02, 2022 (1) 1,087 1,105 1, % January 30, 2023 (1) 2,241 2,268 2, % May 29, 2042 (1) Sun Life Financial, Inc., Senior Note, (MTN) 4.80% November 23, 2035 (1) 3,157 3,224 3,306 Suncor Energy, Inc., (MTN) 5.80% May 22, ,766 3,215 3, % March 26, ,218 4,182 4,898 TD Capital Trust III 7.24% December 31, 2018 (1) 1,580 1,930 1,960 TD Capital Trust IV 9.52% June 30, 2108 (1) 3,735 4,899 5, % June 30, 2108 (1) 6,471 7,429 7,942 TELUS Corp. 4.95% May 15, ,272 4,432 4, % May 25, ,556 4,695 4, % March 15, ,241 3,420 3, % December 04, ,595 5,785 6, % July 23, ,954 6,147 6,790 TELUS Corp., Senior Unsecured Note 5.95% April 15, ,084 2,113 2,268 Teranet, LP 3.53% December 16, ,823 2,823 2, % December 16, ,888 6,222 6, % December 17, ,704 2,704 3, % June 17, ,749 2,748 3,262 Terasen Gas Vancouver Island, Inc. 5.20% December 06, ,024 1,021 1,227 Par (in 000s) Corporate (continued) Terasen Gas Vancouver Island, Inc., Senior Unsecured Note 6.05% February 15, ,046 1,158 1,387 Terasen Gas, Inc., (MTN) 6.55% February 24, ,864 3,817 4,155 Terasen Gas, Inc., Note, (MTN) 5.90% February 26, ,955 2,221 2,562 Terasen Gas, Inc., Senior Note, (MTN) 5.80% May 13, ,738 1,600 2,300 Terasen Gas, Inc., Series B, Note 10.30% September 30, ,658 2,268 2,124 Thomson Reuters Corp. 5.20% December 01, ,043 5,060 5, % July 15, ,113 3,154 3, % March 31, ,537 6,206 6, % September 30, ,985 5,402 5,451 Tim Hortons, Inc. 4.20% June 01, ,270 1,296 1,374 Toronto Hospital, Series DOM1, Note 5.64% December 08, Toronto Hydro Corp. 4.49% November 12, ,838 2,916 3, % November 18, ,469 2,468 2,593 Toronto Hydro Corp., Note 5.15% November 14, ,923 2,935 3,325 Toronto-Dominion Bank 2.95% August 02, ,308 12,332 12,712 Toronto-Dominion Bank, (MTN) 5.48% April 02, 2020 (1) 5,044 5,198 5, % November 02, 2020 (1) 3,736 3,739 3, % July 09, 2023 (1) 3,735 4,053 4, % October 30, 2104 (1) 6,148 6,213 6, % December 14, 2105 (1) 21,742 20,210 23,669 Toronto-Dominion Bank, Note 10.05% August 04, % May 26, ,320 1,875 2,058 Toyota Credit Canada, Inc. 2.45% February 27, ,074 2,074 2,095 Toyota Credit Canada, Inc., (MTN) 3.55% February 22, ,173 2,273 2, % October 19, ,975 1,968 1,969 TransAlta Corp., (MTN) 6.45% May 29, % November 18, % October 22, ,452 2,899 2,612 TransAlta Corp., Note, (MTN) 6.90% November 15, 2030 (1) 2,053 2,158 2,110 TransCanada PipeLines, Ltd. 8.05% February 17, ,371 3,429 3,860 TransCanada PipeLines, Ltd., (MTN) 5.65% January 15, ,574 3,876 3, % February 14, % October 03, ,002 3,015 3, % November 15, ,035 3,035 3, % November 15, ,677 1,667 1,836 The accompanying notes are an integral part of the financial statements. 127

128 BlackRock Canada Universe Bond Index Fund Par (in 000s) Corporate (continued) TransCanada PipeLines, Ltd., Note, (MTN) 8.29% February 05, ,754 3,322 4, % April 15, ,333 2,829 3, % December 09, ,386 1,406 1,818 Union Gas, Ltd. 8.65% November 10, ,339 3,294 3, % June 21, ,873 1,871 2,200 Union Gas, Ltd., (MTN) 4.64% June 30, % April 25, ,124 1, % September 02, % July 23, ,034 1,197 1,259 Union Gas, Ltd., Series 1992, Note 9.70% November 06, ,553 4,828 4,690 Union Gas, Ltd., Series 1993, Note 8.75% August 03, ,960 3,755 3,883 Union Gas, Ltd., Series % February 24, Vancouver International Airport Authority 7.43% December 07, 2026 (1) 988 1,403 1,412 Veresen, Inc. 5.60% July 28, ,437 2,581 2,546 Veresen, Inc., (MTN) 3.95% March 14, ,185 1,184 1,222 VW Credit Canada, Inc. 3.60% February 01, % October 11, ,469 2,467 2, % June 01, ,074 2,077 2,119 Wells Fargo Canada Corp., (MTN) 2.94% July 25, ,951 3,951 3,986 Wells Fargo Financial Canada Corp. 3.97% November 03, ,103 7,105 7,378 Wells Fargo Financial Canada Corp., (MTN) 4.38% June 30, ,910 5,082 5, % March 30, ,748 3,746 3, % February 09, ,075 14,092 14,315 Westcoast Energy, Inc. 3.28% January 15, ,443 3,435 3, % January 10, ,417 1, % July 02, ,216 1,244 1, % December 05, ,000 2,999 2,984 Westcoast Energy, Inc., (MTN) 5.60% January 16, ,148 2,360 2, % October 28, ,393 1,409 1, % March 20, ,950 3,136 4, % October 28, ,037 1,067 1,167 Par (in 000s) Corporate (continued) Winnipeg Airport Authority, Inc. 4.57% November 20, ,110 1,103 Total Corporate 1,826,599 1,947,997 Total Fixed Income Investments 6,247,376 6,631,030 Total Investments 6,247,376 6,631,030 Other Assets and Liabilities 0.7% 42,760 Net Assets 6,673,790 (1) Variable rate security. Rate shown is as at report date. Portfolio Concentration (as a percentage of Net Assets) As at December 31, 2012 As at December 31, 2011 Portfolio by Category (%) (%) Federal Non-Agency Federal Agency Government Guaranteed Municipal Provincial Corporate Other Assets and Liabilities The accompanying notes are an integral part of the financial statements. 128

129 BlackRock Canada ex-bbb Universe Bond Index Fund Statement of Net Assets As at December Assets Investments - at fair (Note 2) $ 246,387,431 $ 584,948,094 Cash 225, ,801 Interest receivable 1,345,237 3,392,683 Securities lending income receivable 1,074 2,245 Accounts receivable for investment sales 7,797, ,757, ,143,823 Liabilities Operating expenses payable 23,947 28,132 Payables for redemption of units 7,504,194 - Payables for investment purchases 389, ,926 7,917, ,058 Net Assets $ 247,840,150 $ 588,553,765 Number of Units Issued and Outstanding (Note 8) 13,160,599 32,285,835 Net Assets per Unit $ $ Investments at Cost $ 232,149,501 $ 544,391,979 Approved by BlackRock Asset Management Canada Limited, Manager of the Funds Eric Léveillé, Director Noel Archard, Director The accompanying notes are an integral part of the financial statements. 129

130 BlackRock Canada ex-bbb Universe Bond Index Fund Statement of Operations For the Years Ended December Revenue Interest income $ 10,907,772 $ 23,632,556 Securities lending income 15,787 21,551 10,923,559 23,654,107 Expenses Custodian fees 13,900 17,745 Fund accounting expenses 41,724 59,103 Unitholder communication s Audit fees 17,214 18,326 Securities filing fees 5,008 8,923 Independent review committee fees Other operating expenses 1,315 2,635 79, ,014 Net Investment Income for the Year 10,844,234 23,546,093 Gain (Loss) on Investments Net realized gain on sale of investments 23,395,494 5,514,143 Net change in unrealized appreciation (depreciation) in of investments (26,318,185) 27,942,191 Net Gain (Loss) on Investments (2,922,691) 33,456,334 Increase in Net Assets from Operations $ 7,921,543 $ 57,002,427 Increase in Net Assets from Operations per Unit $ 0.48 $ 1.63 Statement of Changes in Net Assets For the Years Ended December Net Assets - Beginning of Year $ 588,553,765 $ 604,568,362 Increase in Net Assets from Operations 7,921,543 57,002,427 Capital Transactions Proceeds from issue of units 60,000 7,516,605 Reinvestment of distributions 33,806,578 29,462,482 Redemption of units (348,695,158) (80,533,629) Net capital transactions (314,828,580) (43,554,542) Distributions From net investment income (10,845,272) (23,544,526) From capital gains (3,647,285) (5,917,956) From capital gains redemption in kind (Note 9) (19,314,021) - Total distributions (33,806,578) (29,462,482) Decrease in Net Assets for the Year (340,713,615) (16,014,597) Net Assets - End of Year $ 247,840,150 $ 588,553,765 The accompanying notes are an integral part of the financial statements. 130

131 BlackRock Canada ex-bbb Universe Bond Index Fund Par (in 000s) Fixed Income Investments Government Federal Non-Agency 31.0% Government of Canada 1.00% February 01, ,110 1,111 1, % March 01, ,808 1,815 1, % May 01, ,880 1,865 1, % June 01, ,645 1,810 1, % June 01, ,839 2,922 2, % August 01, ,850 2,920 2, % November 01, ,750 1,746 1, % December 01, ,322 3,393 3, % February 01, ,588 2,583 2, % June 01, ,868 2,024 2, % June 01, ,130 2,173 2, % August 01, ,506 1,518 1, % December 01, ,370 2,456 2, % February 01, , % June 01, ,837 1,904 2, % June 01, ,066 2,027 2, % September 01, ,964 2,081 2, % March 01, ,893 1,905 1, % June 01, ,068 2,281 2, % September 01, ,851 1,860 1, % March 01, % June 01, ,034 2,290 2, % June 01, ,617 3,896 4, % June 01, ,725 2,821 3, % March 15, % June 01, ,331 2,546 2, % June 01, ,321 2,488 2, % June 01, % June 01, % June 01, % June 01, , % June 01, ,149 2,663 3, % June 01, ,318 2,978 3, % June 01, ,575 3,254 3, % June 01, ,098 3,848 4, % December 01, ,356 1,607 1,709 73,791 76,886 Federal Agency 12.8% Asian Development Bank, Series MPLE, Senior Unsecured Note 4.65% February 16, Canada Housing Trust 2.20% March 15, ,425 1,405 1, % June 15, ,200 2,237 2, % September 15, ,000 1,032 1, % December 15, ,125 2,116 2, % March 15, % June 15, ,100 1,125 1, % December 15, ,705 1,803 1, % March 15, ,170 1,198 1, % December 15, ,115 1,125 1,216 Canada Housing Trust No % December 15, ,310 1,309 1, % December 15, ,180 1,162 1, % June 15, ,050 3,055 3,179 Par (in 000s) Federal Agency (continued) 1.85% December 15, ,400 2,419 2, % June 15, ,100 2,116 2, % December 15, ,250 2,248 2, % June 15, ,700 1,749 1, % March 15, ,460 1,473 1, % December 15, Canada Post Corp. 4.08% July 16, Inter-American Development Bank, Note 4.75% November 17, % January 26, Royal Office Finance LP, Series A, Note 5.21% November 12, South Coast British Columbia Transportation Authority 3.80% November 02, % June 20, % February 09, ,532 31,646 Municipal 2.3% Alberta Capital Finance Authority, Note 3.05% June 15, % June 15, City of Montreal 5.00% December 01, % December 01, % December 01, % June 01, City of Toronto 4.55% May 20, % July 28, % December 02, % July 26, % December 06, % June 01, % June 10, City of Winnipeg 9.13% May 12, Municipal Finance Authority of British Columbia 4.65% April 19, % June 01, % December 01, % June 03, % June 01, % June 01, % June 01, % December 01, Peel Regional Municipality 5.10% June 29, % October 30, PSP Capital, Inc. 2.94% December 03, % February 16, The accompanying notes are an integral part of the financial statements. 131

132 BlackRock Canada ex-bbb Universe Bond Index Fund Par (in 000s) Municipal (continued) Regional Municipality of York 4.50% June 30, % June 30, % May 31, Ville Montreal 5.00% December 01, ,222 5,621 Provincial 30.1% Centre Hospitalier de L universite de Montreal 4.45% October 01, City of Toronto 3.80% December 13, Financement-Quebec 4.25% March 01, % June 01, % December 01, % December 01, % December 01, % December 01, % June 01, Hydro Quebec 9.63% July 15, % February 15, Hydro Quebec, (MTN) 6.00% February 15, Hydro Quebec, Series 19, Note 6.50% February 15, Hydro Quebec, Series HL, Note 11.00% August 15, Hydro Quebec, Series JM, Note 5.00% February 15, Province of Alberta 2.75% December 01, % September 01, % June 15, % December 01, % December 15, % December 01, Province of British Columbia 4.25% June 18, % December 01, % December 18, % December 18, % May 15, % December 18, % December 18, % September 08, % June 18, % June 18, % June 18, % June 18, % June 18, Province of British Columbia, Unsecured Note 3.20% June 18, Par (in 000s) Provincial (continued) Province of British Columbia, (MTN) 4.65% December 18, % June 18, Province of Manitoba 4.80% December 03, % June 01, % June 03, % December 22, % March 05, % March 05, % March 05, % March 05, % March 05, Province of Manitoba, (MTN) 6.50% September 22, Province of New Brunswick 4.50% February 04, % July 21, % December 27, % June 03, % June 02, % December 03, % June 02, % December 27, % January 27, % September 26, % March 26, % September 26, % June 03, % June 03, Province of Newfoundland 5.25% June 04, % April 15, % April 17, % October 17, Province of Nova Scotia 4.60% August 18, % September 08, ,188 1,184 1, % November 25, % June 01, % June 01, % June 01, % June 01, % June 01, % June 02, ,788 1,818 1, % June 02, Province of Nova Scotia, (MTN) 5.80% June 01, Province of Nova Scotia, Series 9Z 6.60% June 01, Province of Ontario 5.00% March 08, ,352 1,425 1, % September 08, % March 08, % September 08, % March 08, % September 08, % March 08, ,207 1,281 1,328 The accompanying notes are an integral part of the financial statements. 132

133 BlackRock Canada ex-bbb Universe Bond Index Fund Par (in 000s) Provincial (continued) 4.20% March 08, % June 02, ,592 1,657 1, % June 02, ,046 2,089 2, % June 02, ,046 2,120 2, % June 02, ,407 2,457 2, % June 02, % September 08, % December 02, % June 02, ,022 1, % March 08, ,017 1,262 1, % June 02, % March 08, , % June 02, ,131 1,157 1, % June 02, ,207 1,196 1, % June 02, ,152 2,317 2,637 Province of Ontario, (MTN) 5.60% June 02, ,176 1,357 1,572 Province of Ontario, Series HC 9.50% July 13, Province of Prince Edward Island 4.25% September 24, % June 15, % November 19, % May 19, Province of Quebec 5.50% December 01, % December 01, % December 01, % December 01, % December 01, ,000 1, % December 01, ,320 1,363 1, % December 01, ,426 1,485 1, % December 01, ,332 1,373 1, % January 16, % June 01, % April 01, % October 01, % June 01, , % December 01, , % December 01, ,101 1, % December 01, ,537 1,643 1, % December 01, ,260 1,374 1,434 Province of Quebec, Senior Unsecured Note 3.00% September 01, Province of Quebec, (MTN) 4.50% December 01, Province of Saskatchewan 4.65% September 05, % July 28, % February 04, % September 05, % June 01, % February 03, ,702 74,769 Total Government 178, ,922 Par (in 000s) Corporate 23.2% 407 East Development Group General Partnership 2.81% December 18, International, Inc., (MTN) 3.88% June 16, % May 26, % November 15, % April 25, International, Inc., Series 04A3 5.96% December 03, International, Inc., Series 99A2, Senior Note 6.47% July 27, Aeroports de Montreal 5.17% September 17, % April 16, Alliance Pipeline, LP, Senior Note 5.55% December 31, AltaLink, LP, (MTN) 5.24% May 29, % November 28, % November 15, % November 08, American Express Canada (MTN) 4.85% October 03, American Express Canada, Guaranteed Note, (MTN) 3.60% June 03, Bank of Montreal 3.93% April 27, % October 05, % March 10, % June 10, % August 02, % July 12, % December 11, % September 10, Bank of Montreal, (MTN) 3.98% July 08, 2021 (1) Bank of Montreal, DPNT 5.18% June 10, % May 02, Bank of Montreal, Series C, Subordinated Note 4.87% April 22, 2020 (1) Bank of Nova Scotia 3.43% July 16, % November 18, % March 25, % May 08, % February 22, % December 01, % February 27, % June 08, % January 22, 2021 (1) % October 18, 2024 (1) The accompanying notes are an integral part of the financial statements. 133

134 BlackRock Canada ex-bbb Universe Bond Index Fund Par (in 000s) Corporate (continued) Bank of Nova Scotia, (MTN) 2.90% August 03, 2022 (1) Bank of Nova Scotia, Note 8.90% June 20, BCIMC Realty Corp. 2.65% June 29, % March 07, % June 29, BCIMC Realty Corp., (MTN) 4.65% February 10, BMW Canada, Inc. 2.76% April 01, % April 01, % May 26, % November 27, BP, LP 3.24% January 09, British Columbia Ferry Services, Inc., Note 5.02% March 20, British Columbia Ferry Services, Inc., Series 08-1, Senior Secured Note 5.58% January 11, British Columbia Ferry Services, Inc., Series B, Senior Secured Note 6.25% October 13, Broadway Credit Card Trust, Series A, Note 4.80% March 17, Brookfield Asset Management, Inc. 8.95% June 02, % April 25, Brookfield Asset Management, Inc., (MTN) 5.30% March 01, Brookfield Asset Management, Inc., Note 5.95% June 14, Cadillac view Finance Trust 3.24% January 25, % May 09, % January 25, Caisse Centrale Desjardins du Quebec 3.50% October 05, Canada Life Capital Trust, Secured Note, Series B 7.53% June 30, Canadian Credit Card TST 2.31% April 24, % July 24, Canadian Imperial Bank of Commerce 3.30% November 19, % May 22, % January 14, Par (in 000s) Corporate (continued) 2.65% November 08, % July 14, % October 18, % April 30, 2020 (1) % November 02, 2020 (1) Canadian Imperial Bank of Commerce, DPNT, Note 4.95% January 23, Canadian Western Bank 3.05% January 18, Capital City Link General Partnership 4.39% March 31, Capital Desjardins, Inc. 5.76% April 01, 2019 (1) % May 05, % November 23, 2020 (1) Cards II Trust 3.10% September 15, % May 15, Caterpillar Financial Services, Ltd. 2.20% June 01, % June 01, CDP Financial, Inc. 4.60% July 15, Centre Street Trust 3.69% June 14, Centre Street Trust, Secured Note 3.69% June 14, Consumers Gas Corp., Ltd., Note, (MTN) 6.10% May 19, CU, Inc. 4.54% October 24, % September 10, % November 18, % October 24, % September 11, CU, Inc., (MTN) 6.80% August 13, % November 21, CU, Inc., Note 6.15% November 22, Daimler Canada Finance, Inc. 3.02% January 07, % September 14, Eagle Credit Card Trust 3.47% December 17, Empire Life Insurance 6.73% May 20, 2019 (1) Enbridge Gas Distribution, Inc., (MTN) 4.04% November 23, % November 22, Enbridge Gas Distribution, Inc., Note, (MTN) 4.77% December 17, % November 15, % February 25, The accompanying notes are an integral part of the financial statements. 134

135 BlackRock Canada ex-bbb Universe Bond Index Fund Par (in 000s) Corporate (continued) Enbridge Pipelines, Inc., Note, (MTN) 5.08% December 19, Enbridge, Inc. 4.53% March 09, % December 05, Enbridge, Inc., (MTN) 7.20% June 18, % August 27, Enersource Corp. 4.52% April 29, % April 29, Fifth Avenue, LP 4.71% August 05, FortisAlberta, Inc. 5.40% April 21, % October 23, FortisAlberta, Inc., (MTN) 5.85% April 15, Gaz Metro, Inc., Guaranteed Note 5.45% July 12, GE Capital Canada Funding Co. 2.95% February 10, GE Capital Canada Funding Co., (MTN) 4.40% June 01, % June 08, % November 23, % August 17, % June 11, % January 26, % October 22, GE Capital Canada Funding Co., Note, (MTN) 4.65% February 11, % January 17, Genworth MI Canada, Inc. 4.59% December 15, Glacier Credit Card Trust 3.16% November 20, % April 20, Golden Credit Card Trust 3.51% May 15, Great-West Lifeco Finance Delaware, LP II 7.13% June 26, 2068 (1) Great-West Lifeco Finance Delaware, LP, Subordinated Note 5.69% June 21, 2067 (1) Great-West Lifeco, Inc. 4.65% August 13, Great-West Lifeco, Inc., Note 6.67% March 21, Great-West Lifeco, Inc., Senior Unsecured Note 6.14% March 21, Par (in 000s) Corporate (continued) Greater Toronto Airports Authority 3.04% September 21, Greater Toronto Airports Authority, (MTN) 4.85% June 01, % April 17, % June 04, % February 02, % June 07, % February 25, Halifax International Airport Authority 4.89% November 15, Honda Canada Finance, Inc. 2.28% December 11, Hospital Infrastructure Partners NOH Partnership 5.44% January 31, HSBC Bank of Canada 3.86% May 21, % November 23, % January 13, % October 04, % April 10, 2022 (1) Hydro One, Inc., (MTN) 2.95% September 11, % October 18, % January 13, % May 20, % March 03, % July 16, % September 26, % October 19, IGM Financial, Inc. 7.35% April 08, % December 10, Industrial Alliance Capital Trust, Note 5.13% June 30, 2019 (1) Integrated Team Solutions SJHC Partnership 5.95% November 30, John Deere Canada Funding, Inc., (MTN) 2.25% October 18, John Deere Credit, Inc., (MTN) 1.85% January 24, % October 14, Lower Mattagami Energy, LP 2.23% October 23, % April 23, Manufacturers Life Insurance Co. 4.21% November 18, 2021 (1) % June 01, 2022 (1) Manulife Financial Capital Trust II 7.41% December 31, 2108 (1) Manulife Financial Corp., (MTN) 4.90% June 02, % August 20, % June 26, The accompanying notes are an integral part of the financial statements. 135

136 BlackRock Canada ex-bbb Universe Bond Index Fund Par (in 000s) Corporate (continued) Master Credit Card Trust 3.50% May 21, % January 21, Merrill Lynch Canada Finance Co., (MTN) 5.00% February 18, National Bank of Canada 2.23% January 30, % May 26, % April 26, % August 21, National Bank of Canada, (MTN) 4.93% December 22, 2019 (1) % November 02, 2020 (1) % April 11, 2022 (1) NAV Canada 5.30% April 17, % February 18, NAV Canada, (MTN) 4.71% February 24, NAV Canada, Note 7.56% March 01, NOVA Gas Transmission, Ltd., Series 21, Note 12.20% February 28, Ontario Electricity Financial Corp., Series FV6, Note 8.90% August 18, Ontario School Boards Financing Corp. 5.38% June 25, Ontario School Boards Financing Corp., Note 5.48% November 26, % April 18, Ontario School Boards Financing Corp., Series 01A3 6.55% October 19, Ottawa MacDonald-Cartier International Airport Authority, Note 4.73% May 02, Plenary Health Bridgepoint, LP 7.25% August 31, Plenary Health Care Partnerships Humber, LP 4.82% November 30, Plenary Properties LTAP, LP 6.29% January 31, Power Financial Corp., Note 6.90% March 11, Royal Bank of Canada 2.05% January 13, % January 11, % July 26, % December 08, % January 25, Par (in 000s) Corporate (continued) 2.58% April 13, % September 21, % May 07, % November 02, 2020 (1) % December 06, 2024 (1) % July 16, Royal Bank of Canada, (MTN) 3.18% March 16, Royal Bank of Canada, Senior Note 4.97% June 05, Royal Bank of Canada, Series 2014, Subordinated Note 5.95% June 18, Scotiabank Tier I Capital Trust 7.80% June 30, 2108 (1) SNC-Lavalin Innisfree McGill Finance, Inc. 6.63% June 30, SP LP/SP1, LP 3.21% June 15, Standard Life Assurance Co. of Canada 3.94% September 21, 2022 (1) Sun Life Financial, Inc. 4.57% August 23, % June 01, 2036 (1) Sun Life Financial, Inc., (MTN) 5.40% May 29, 2042 (1) Sun Life Financial, Inc., Senior Note, (MTN) 4.80% November 23, 2035 (1) TD Capital Trust IV 6.63% June 30, 2108 (1) % June 30, 2108 (1) Thomson Reuters Corp. 5.20% December 01, % July 15, % March 31, % September 30, Tim Hortons, Inc. 4.20% June 01, Toronto Hydro Corp. 4.49% November 12, % November 18, Toronto Hydro Corp., Note 5.15% November 14, Toronto-Dominion Bank 2.95% August 02, Toronto-Dominion Bank, (MTN) 5.48% April 02, 2020 (1) % November 02, 2020 (1) % December 14, 2105 (1) 1,244 1,265 1,354 Toyota Credit Canada, Inc. 2.45% February 27, Toyota Credit Canada, Inc., (MTN) 2.20% October 19, The accompanying notes are an integral part of the financial statements. 136

137 BlackRock Canada ex-bbb Universe Bond Index Fund Par (in 000s) Corporate (continued) TransCanada PipeLines, Ltd. 8.05% February 17, TransCanada PipeLines, Ltd., (MTN) 4.65% October 03, % November 15, % November 15, TransCanada PipeLines, Ltd., Note, (MTN) 7.90% April 15, Vancouver International Airport Authority 7.43% December 07, 2026 (1) VW Credit Canada, Inc. 2.50% June 01, % June 01, Wells Fargo Canada Corp., (MTN) 2.94% July 25, Wells Fargo Financial Canada Corp. 3.97% November 03, Wells Fargo Financial Canada Corp., (MTN) 4.38% June 30, % March 30, % February 09, Winnipeg Airport Authority, Inc. 4.57% November 20, Total Corporate 53,903 57,465 Total Fixed Income Investments 232, ,387 Total Investments 232, ,387 Other Assets and Liabilities 0.6% 1,453 Net Assets 247,840 (1) Variable rate security. Rate shown is as at report date. Portfolio Concentration (as a percentage of Net Assets) As at December 31, 2012 As at December 31, 2011 Portfolio by Category (%) (%) Federal Non-Agency Federal Agency Government Guaranteed Municipal Provincial Corporate Other Assets and Liabilities The accompanying notes are an integral part of the financial statements. 137

138 BlackRock Canada Real Return Bond Index Fund Statement of Net Assets As at December Assets Investments - at fair (Note 2) $ 912,628,751 $ 792,497,547 Cash 2,247, ,607 Interest receivable 1,640,944 1,401,522 Accounts receivable from issue of units 3,175, , ,693, ,418,676 Liabilities Operating expenses payable 25,019 23,459 Payables for redemption of units 7,178 - Payables for investment purchases 4,750,740-4,782,937 23,459 Net Assets $ 914,910,382 $ 794,395,217 Net Assets per Class Class A $ 389,091,995 $ 424,202,197 Class D 525,818, ,193,020 $ 914,910,382 $ 794,395,217 Number of Units Issued and Outstanding (Note 8) Class A 11,539,430 12,940,287 Class D 33,633,128 24,355,188 Net Assets per Unit Class A $ $ Class D $ $ Investments at Cost $ 777,284,841 $ 644,789,052 Approved by BlackRock Asset Management Canada Limited, Manager of the Funds Eric Léveillé, Director Noel Archard, Director The accompanying notes are an integral part of the financial statements. 138

139 BlackRock Canada Real Return Bond Index Fund Statement of Operations For the Years Ended December Revenue Interest income $ 24,598,571 $ 30,612,287 Securities lending income ,598,571 30,612,377 Expenses Custodian fees 21,995 17,761 Fund accounting expenses 64,187 61,581 Unitholder communication s Audit fees 11,216 11,837 Securities filing fees 14,290 10,717 Independent review committee fees Other operating expenses 2,450 2, , ,967 Net Investment Income for the Year 24,484,098 30,506,410 Gain on Investments Net realized gain on sale of investments 12,481,846 11,075,233 Net change in unrealized appreciation (depreciation) in of investments (12,364,585) 81,706,975 Net Gain on Investments 117,261 92,782,208 Increase in Net Assets from Operations $ 24,601,359 $ 123,288,618 Increase in Net Assets from Operations per Class Class A $ 11,960,117 $ 66,561,538 Class D 12,641,242 56,727,080 $ 24,601,359 $ 123,288,618 Increase in Net Assets from Operations per Unit Class A $ 0.97 $ 5.18 Class D $ 0.45 $ 2.42 The accompanying notes are an integral part of the financial statements. 139

140 BlackRock Canada Real Return Bond Index Fund Statement of Changes in Net Assets For the Years Ended December Net Assets - Beginning of Year Fund Class A Class D $794,395,217 $604,301,254 $424,202,197 $330,717,935 $370,193,020 $273,583,319 Increase in Net Assets from Operations 24,601, ,288,618 11,960,117 66,561,538 12,641,242 56,727,080 Capital Transactions Proceeds from issue of units 169,673, ,368,376 5,041, ,686, ,632,277 71,681,929 Reinvestment of distributions 36,966,460 41,581,639 16,267,783 22,534,498 20,698,677 19,047,141 Redemption of units (73,759,579) (125,563,031) (52,111,427) (93,763,723) (21,648,152) (31,799,308) Net capital transactions 132,880, ,386,984 (30,802,536) 49,457, ,682,802 58,929,762 Distributions From net investment income (24,484,614) (30,506,406) (10,941,071) (16,618,716) (13,543,543) (13,887,690) From capital gains (12,481,846) (11,075,233) (5,326,712) (5,915,782) (7,155,134) (5,159,451) Total distributions (36,966,460) (41,581,639) (16,267,783) (22,534,498) (20,698,677) (19,047,141) Increase (Decrease) in Net Assets for the Year 120,515, ,093,963 (35,110,202) 93,484, ,625,367 96,609,701 Net Assets - End of Year $914,910,382 $794,395,217 $389,091,995 $424,202,197 $525,818,387 $370,193,020 The accompanying notes are an integral part of the financial statements. 140

141 BlackRock Canada Real Return Bond Index Fund Par (in 000s) Fixed Income Investments Government Federal Non-Agency 86.0% Government of Canada 4.25% December 01, , , , % December 01, , , , % December 01, , , , % December 01, , , , % December 01, ,158 98, , % December 01, ,339 94, , , ,793 Provincial 13.8% Province of Manitoba 1.74% December 01, ,315 1,269 1, % December 01, ,225 1,228 1,605 Province of Ontario 2.00% December 01, ,541 38,971 50,425 Province of Quebec 4.50% December 01, ,879 11,381 12, % December 01, ,674 18,077 21, % December 01, ,328 20,279 24, % December 01, ,088 12,054 14, , ,836 Total Government 777, ,629 Total Fixed Income Investments 777, ,629 Total Investments 777, ,629 Other Assets and Liabilities 0.2% 2,281 Net Assets 914,910 Portfolio Concentration (as a percentage of Net Assets) As at December 31, 2012 As at December 31, 2011 Portfolio by Category (%) (%) Federal Non-Agency Provincial Other Assets and Liabilities The accompanying notes are an integral part of the financial statements. 141

142 BlackRock Canada Long Bond Index Fund Statement of Net Assets As at December Assets Investments - at fair (Note 2) $ 9,273,510,310 $ 7,356,149,212 Cash 50,500,510 4,230,694 Interest receivable 57,649,309 50,155,023 Securities lending income receivable 2,823 7,824 Accounts receivable from issue of units 146,764, ,951,739 Accounts receivable for investment sales - 816,605,963 9,528,427,566 8,345,100,455 Liabilities Operating expenses payable 122, ,105 Payables for redemption of units 1,689, ,500,057 Payables for investment purchases 108,171,737 94,347, ,984, ,958,847 Net Assets $ 9,418,443,446 $ 7,427,141,608 Net Assets per Class Class A $ 8,369,929,439 $ 6,793,788,830 Class D 1,048,514, ,352,778 $ 9,418,443,446 $ 7,427,141,608 Number of Units Issued and Outstanding (Note 8) Class A 288,391, ,320,775 Class D 67,959,570 43,010,772 Net Assets per Unit Class A $ $ Class D $ $ Investments at Cost $ 8,349,258,897 $ 6,318,043,301 Approved by BlackRock Asset Management Canada Limited, Manager of the Funds Eric Léveillé, Director Noel Archard, Director The accompanying notes are an integral part of the financial statements. 142

143 BlackRock Canada Long Bond Index Fund Statement of Operations For the Years Ended December Revenue Interest income $ 341,004,577 $ 322,895,563 Securities lending income 44,916 25, ,049, ,921,407 Expenses Custodian fees 195, ,005 Fund accounting expenses 247, ,194 Unitholder communication s 6, Audit fees 12,296 18,569 Securities filing fees 138, ,916 Independent review committee fees 3,376 8,403 Other operating expenses 12,885 10, , ,979 Net Investment Income for the Year 340,433, ,376,428 Gain on Investments Net realized gain on sale of investments 167,454, ,857,721 Net change in unrealized appreciation (depreciation) in of investments (113,854,498) 678,725,727 Net Gain on Investments 53,599, ,583,448 Increase in Net Assets from Operations $ 394,033,436 $ 1,239,959,876 Increase in Net Assets from Operations per Class Class A $ 354,895,934 $ 1,146,579,937 Class D 39,137,502 93,379,939 $ 394,033,436 $ 1,239,959,876 Increase in Net Assets from Operations per Unit Class A $ 1.34 $ 4.32 Class D $ 0.73 $ 2.38 The accompanying notes are an integral part of the financial statements. 143

144 BlackRock Canada Long Bond Index Fund Statement of Changes in Net Assets For the Years Ended December Fund Class A Class D Net Assets - Beginning of Year $ 7,427,141,608 $ 6,635,136,830 $ 6,793,788,830 $ 6,212,513,402 $ 633,352,778 $ 422,623,428 Increase in Net Assets from Operations 394,033,436 1,239,959, ,895,934 1,146,579,937 39,137,502 93,379,939 Capital Transactions Proceeds from issue of units 2,276,891,201 1,899,322,442 1,852,214,058 1,704,340, ,677, ,982,308 Reinvestment of distributions 638,590, ,266, ,921, ,117,592 55,668,492 32,149,135 Redemption of units (679,622,799) (2,347,277,540) (630,969,383) (2,269,644,643) (48,653,416) (77,632,897) Net capital transactions 2,235,858,810 (1,688,371) 1,804,166,591 (151,186,917) 431,692, ,498,546 Distributions From net investment income (340,443,228) (322,369,775) (305,176,438) (298,441,508) (35,266,790) (23,928,267) From capital gains (183,424,751) (106,886,179) (163,023,049) (98,665,311) (20,401,702) (8,220,868) From capital gains redemption in kind (Note 9) (114,722,429) (17,010,773) (114,722,429) (17,010,773) - - Total distributions (638,590,408) (446,266,727) (582,921,916) (414,117,592) (55,668,492) (32,149,135) Increase in Net Assets for the Year 1,991,301, ,004,778 1,576,140, ,275, ,161, ,729,350 Net Assets - End of Year $ 9,418,443,446 $ 7,427,141,608 $ 8,369,929,439 $ 6,793,788,830 $ 1,048,514,007 $ 633,352,778 The accompanying notes are an integral part of the financial statements. 144

145 BlackRock Canada Long Bond Index Fund Par (in 000s) Fixed Income Investments Government Federal Non-Agency 27.7% Government of Canada 8.00% June 01, , , , % June 01, , , , % June 01, ,201 95, , % June 01, , , , % June 01, , , , % June 01, , , , % June 01, , , , % June 01, , , , % December 01, , , ,477 2,359,207 2,607,829 Federal Agency 1.5% Asian Development Bank, Series MPLE, Senior Unsecured Note 4.65% February 16, ,359 17,167 19,095 Canada Post Corp. 4.08% July 16, ,450 13,960 15, % July 16, ,826 14,729 17,360 Inter-American Development Bank, Note 4.40% January 26, ,979 27,682 31,828 Royal Office Finance LP, Series A, Note 5.21% November 12, ,451 33,643 38,497 South Coast British Columbia Transportation Authority 4.65% June 20, ,000 5,660 5, % February 09, ,750 6,907 6, , ,004 Municipal 1.6% Alberta Capital Finance Authority, (MTN) 4.45% December 15, ,000 9,415 9,278 City of Montreal 6.00% June 01, ,892 16,432 20,238 City of Ottawa 4.60% July 14, ,003 9,971 10,228 City of Toronto 5.20% June 01, ,838 18,637 21, % June 10, ,311 16,686 18,696 City of Vancouver 3.70% October 18, ,230 4,201 4,173 City of Winnipeg 5.20% July 17, ,700 5,671 5,637 Municipal Finance Authority of British Columbia 5.35% December 02, ,391 1,671 1, % April 06, ,318 1,318 1, % December 01, ,574 16,169 18,268 Peel Regional Municipality 5.10% June 29, ,489 12,854 15, % October 30, ,500 10,479 10,614 Par (in 000s) Municipal (continued) Regional Municipality of Halton 4.05% October 11, ,486 1,498 1,543 Regional Municipality of York 4.00% May 31, ,650 8,766 8, % November 18, ,250 3,440 3, , ,258 Provincial 50.7% Centre Hospitalier de L universite de Montreal 4.45% October 01, ,350 1,350 1,443 City of Toronto 3.80% December 13, ,900 8,870 8,863 Financement-Quebec 5.25% June 01, ,121 49,904 55,707 Hydro Quebec 6.00% August 15, ,606 12,860 14, % February 15, ,235 81,692 88,325 Hydro Quebec, (MTN) 6.00% February 15, ,192 40,046 47,100 Hydro Quebec, Series 19, Note 6.50% February 15, ,492 85,908 94,480 Hydro Quebec, Series JM, Note 5.00% February 15, ,607 42,764 50,882 Ontario Electricity Financial Corp., Note 8.25% June 22, ,326 49,940 51,769 OPB Finance Trust 3.89% July 04, ,000 3,997 4,062 Province of Alberta 4.50% December 01, ,284 18,277 21,307 Province of Alberta Canada, (MTN) 2.90% September 20, ,000 12,804 12,765 Province of British Columbia 8.00% September 08, ,106 18,103 19, % August 23, ,359 6,456 6, % November 19, ,500 14,196 14, % June 18, ,834 77,797 90, % June 18, ,193 50,689 57, % June 18, ,524 20,158 21, % June 18, ,095 39,345 46, % June 18, ,246 99, ,385 Province of British Columbia, Unsecured Note 3.20% June 18, ,800 16,635 16,542 Province of British Columbia, (MTN) 5.62% August 17, 2028 (1) % June 18, ,855 55,507 66,746 Province of Manitoba 7.75% December 22, ,427 6,663 8, % March 05, ,360 5,392 6, % March 05, ,029 23,125 27, % March 05, ,462 24,765 29, % March 05, ,506 20,530 25, % March 05, ,201 26,790 30,916 The accompanying notes are an integral part of the financial statements. 145

146 BlackRock Canada Long Bond Index Fund Par (in 000s) Provincial (continued) 4.40% March 05, ,476 10,764 12, % March 05, ,800 12,872 12, % March 05, ,750 3,670 3,546 Province of Manitoba, (MTN) 4.40% September 05, ,347 20,334 22, % March 05, ,050 14,270 14,175 Province of New Brunswick 2.85% June 02, ,000 27,893 27, % December 27, ,603 15,464 17, % January 27, ,143 17,502 19, % September 26, ,609 18,766 21, % March 26, ,746 25,638 29, % September 26, ,340 28,767 34, % June 03, ,162 24,874 28, % June 03, ,900 19,967 20,140 Province of Newfoundland 8.45% February 05, % April 17, ,194 22,178 26, % October 17, ,000 20,160 20, % October 17, ,595 9,012 11, % October 17, ,381 12,179 12, % April 17, ,075 9,847 11, % October 17, ,759 20,037 24,212 Province of Nova Scotia 6.60% December 01, ,100 13,224 13, % June 01, ,013 10,309 12, % June 01, ,444 21,294 24, % June 01, ,560 18,180 21, % June 01, ,830 28,407 30, % June 02, , , , % June 02, ,620 28,584 29,187 Province of Nova Scotia, (MTN) 5.80% June 01, ,547 13,814 15,555 Province of Nova Scotia, Series 9Z 6.60% June 01, ,532 14,516 16,038 Province of Ontario 2.85% June 02, ,800 78,714 78, % September 08, ,992 69,750 73, % February 07, ,043 30,739 31, % December 02, ,747 48,116 49, % June 02, ,338 26,841 28, % June 02, , , , % March 08, , , , % June 02, ,281 73,948 82, % March 08, , , , % June 02, , , , % June 02, , , , % June 02, , , ,365 Province of Ontario, (MTN) 5.60% June 02, , , ,634 Province of Prince Edward Island 6.25% January 29, ,174 4,511 5, % June 15, ,486 10,760 12, % November 19, ,265 1,243 1, % May 19, ,594 8,819 10, % June 27, ,250 7,230 7,331 Par (in 000s) Provincial (continued) Province of Quebec 9.38% January 16, ,731 31,176 32, % June 01, ,374 21,841 23, % April 01, ,664 47,370 50, % October 01, ,214 57,783 65, % June 01, , , , % December 01, , , , % December 01, , , , % December 01, , , , % December 01, , , ,235 Province of Quebec, Senior Unsecured Note 3.00% September 01, ,450 48,402 48,534 Province of Saskatchewan 5.75% March 05, ,559 14,023 16, % September 05, ,320 17,624 20, % September 05, ,887 20,818 22, % September 05, ,437 14,076 15, % March 05, ,459 11,862 13, % June 01, ,022 33,163 38, % February 03, ,400 17,697 18,010 4,325,334 4,777,501 Total Government 6,941,497 7,671,592 Corporate 17.0% 407 East Development Group General Partnership 4.47% June 23, ,400 1,400 1, International, Inc., (MTN) 4.45% November 15, ,289 14,297 14, % April 25, ,400 10,576 10, % September 11, ,150 1,148 1, International, Inc., Series 04A3 5.96% December 03, ,642 16,664 19, International, Inc., Series 99A2, Senior Note 6.47% July 27, ,711 19,642 23,759 Aeroports de Montreal 5.17% September 17, ,430 7,315 8, % October 16, ,928 12,466 15, % September 26, ,200 8,366 8,270 Aeroports de Montreal, Note 6.55% October 11, ,147 19,104 23,641 Alliance Pipeline, LP, Senior Note 5.55% December 31, ,695 3,693 4, % December 31, ,788 6,497 7, % December 31, ,389 4,716 5,295 Alliance Pipeline, LP, Series A, Senior Note 7.18% June 30, ,046 3,383 3,708 AltaLink, LP 5.38% March 26, ,442 6,637 8,072 AltaLink, LP, (MTN) 4.87% November 15, ,435 9,413 11, % November 08, ,850 7,561 7, % June 30, ,900 2,900 2,972 The accompanying notes are an integral part of the financial statements. 146

147 BlackRock Canada Long Bond Index Fund Par (in 000s) Corporate (continued) AltaLink, LP, Secured Note, (MTN) 5.25% September 22, ,822 2,822 3,424 Arrow Lakes Power 5.52% April 05, ,209 2,209 2,564 Bank of Montreal 4.61% September 10, ,499 20,425 22,272 Bank of Nova Scotia, Note 8.90% June 20, ,656 4,339 5,632 British Columbia Ferry Services, Inc., Note 5.02% March 20, ,357 11,512 11,676 British Columbia Ferry Services, Inc., Series 08-1, Senior Secured Note 5.58% January 11, ,424 8,747 10,246 British Columbia Ferry Services, Inc., Series B, Senior Secured Note 6.25% October 13, ,547 7,344 8,487 Brookfield Asset Management, Inc., (MTN) 4.54% March 31, ,700 7,800 7,931 Brookfield Asset Management, Inc., Note 5.95% June 14, ,751 13,563 13,693 Canada Life Assurance Co., Series B, Note 6.40% December 11, ,088 2,075 2,445 Canada Life Capital Trust, Secured Note, Series B 7.53% June 30, ,318 2,502 2,784 Canadian Utilities, Ltd., Series % May 01, ,215 5,641 6,464 Capital City Link General Partnership 4.39% March 31, ,315 14,570 14,771 Clarica Life Insurance Co., Series 2, Note 6.30% May 15, ,282 6,218 7,322 Consumers Gas Corp., Ltd., Note, (MTN) 6.10% May 19, ,310 6,739 8,037 CU, Inc. 4.54% October 24, ,999 18,543 19, % September 10, ,500 13,490 13, % November 18, ,859 1,878 2, % November 14, ,850 3,850 3, % October 24, ,053 8,083 8, % September 11, ,700 5,700 5,659 CU, Inc., (MTN) 5.18% November 21, ,778 9,387 11, % May 26, ,923 5,249 6, % March 07, ,500 6,436 6,455 CU, Inc., Note, (MTN) 5.90% November 20, ,913 11,790 14, % October 30, ,669 7,755 9,758 Enbridge Gas Distribution, Inc., (MTN) 4.95% November 22, ,045 8,406 9,793 Par (in 000s) Corporate (continued) Enbridge Gas Distribution, Inc., Note, (MTN) 6.05% July 05, ,336 3,736 4, % October 29, ,084 1,354 1, % November 03, ,465 3,944 4, % December 16, ,563 6,082 7, % February 25, ,485 7,503 9,052 Enbridge Pipelines, Inc. 8.20% February 15, ,974 5,394 5, % November 10, ,877 5,022 6,122 Enbridge Pipelines, Inc., (MTN) 5.33% April 06, ,910 7,393 8,631 Enbridge Pipelines, Inc., Note, (MTN) 6.35% November 17, ,948 4,600 6, % February 12, ,086 4,063 5, % December 19, ,980 3,876 4,748 Enbridge, Inc., (MTN) 7.22% July 24, ,768 2,154 2, % June 18, ,202 15,024 17, % November 14, ,362 5,774 7, % September 02, ,085 5,172 6, % August 27, ,120 13,147 13,288 Enersource Corp. 5.30% April 29, ,097 2,254 2,593 FortisAlberta, Inc. 5.40% April 21, ,173 3,393 3, % February 14, ,500 9,144 9, % October 23, ,400 3,398 3,474 FortisAlberta, Inc., (MTN) 5.85% April 15, ,000 3,956 3, % October 30, ,406 12,852 15, % October 18, ,000 3,347 3, % October 27, ,621 4,571 5,490 FortisAlberta, Inc., Senior Note 6.22% October 31, ,474 7,918 8,727 Gaz Metro, Inc. 5.70% July 10, ,067 4,993 5,192 Gaz Metro, LP, Note 6.30% October 31, ,134 3,831 4,207 Gaz Metro, LP, Secured Note, Series E, (MTN) 9.00% May 16, ,402 8,583 9,919 Gaz Metro, LP, Secured Note, Series I (MTN) 7.05% October 30, ,281 2,618 3,205 GE Capital Canada Funding Co., (MTN) 5.73% October 22, ,675 35,974 45,254 Great-West Lifeco, Inc., Note 6.67% March 21, ,150 22,711 25, % November 16, ,065 7,488 8,802 Greater Toronto Airports Authority, (MTN) 7.05% June 12, ,899 12,391 15, % June 04, ,090 18,389 22, % February 02, ,837 16,493 18,928 The accompanying notes are an integral part of the financial statements. 147

148 BlackRock Canada Long Bond Index Fund Par (in 000s) Corporate (continued) 5.63% June 07, ,735 16,691 20, % February 25, ,809 27,662 30,867 Greater Toronto Airports Authority, Note 6.45% December 03, ,436 11,044 13,705 Greater Toronto Airports Authority, Note, (MTN) 6.45% July 30, ,498 16,800 19, % October 15, ,454 16,801 20,607 Halifax International Airport Authority 5.50% July 19, ,801 4,742 6, % November 15, ,440 4,662 5,276 Hospital Infrastructure Partners NOH Partnership 5.44% January 31, ,099 17,028 18,939 Hydro One, Inc., (MTN) 6.35% January 31, ,193 21,381 24, % May 20, ,288 35,661 42, % March 13, ,700 6,642 6, % March 03, ,580 5,649 6, % July 16, ,971 19,753 23, % September 26, ,716 9,302 9, % October 19, ,254 9,509 10, % December 22, ,970 5,971 6, % July 31, ,500 8,475 8,417 Hydro One, Inc., Note 7.35% June 03, ,725 22,597 27,136 Hydro One, Inc., Note, (MTN) 6.93% June 01, ,824 4,621 5,447 IGM Financial, Inc. 6.65% December 13, ,500 4,160 4, % December 10, ,122 5,219 5,916 IGM Financial, Inc., Note 7.45% May 09, ,074 4,487 5, % December 31, ,950 6,082 6, % March 07, ,754 11,862 12,341 Integrated Team Solutions SJHC Partnership 5.95% November 30, ,821 6,235 7,092 Lower Mattagami Energy, LP 5.14% May 18, ,219 4,277 5, % April 23, ,000 6,367 6,236 NAV Canada, Note 7.56% March 01, ,671 15,242 16, % June 01, ,071 8,392 10,246 Newfoundland & Labrador Hydro, Note 5.70% July 14, ,669 1,956 2,238 Northwestconnect Group 5.95% April 30, ,952 10,481 12,290 NOVA Gas Transmission, Ltd., (MTN) 8.88% May 27, ,003 2,144 3,023 NOVA Gas Transmission, Ltd., Note 9.90% December 16, ,618 7,304 8, % June 05, ,120 1,548 1,642 Par (in 000s) Corporate (continued) NOVA Gas Transmission, Ltd., Note, (MTN) 6.30% May 27, ,210 5,691 6,574 Ontario Electricity Financial Corp., Note 9.00% May 26, ,500 6,884 7, % May 26, ,991 11,941 13,940 Ontario Infrastructure Projects Corp., Note 4.70% June 01, ,011 6,019 6,774 Ontario School Boards Financing Corp. 5.80% November 07, ,515 4,821 5, % August 08, % June 25, ,064 5,121 5,788 Ontario School Boards Financing Corp., Note 7.20% June 09, % November 26, ,372 9,517 10, % April 18, ,796 3,796 4,237 Ontario School Boards Financing Corp., Series 01A3 6.55% October 19, ,690 5,255 5,731 Plenary Health Bridgepoint, LP 7.25% August 31, ,900 10,502 11,119 Plenary Health Care Partnerships Humber, LP 4.90% May 31, ,070 7,268 7, % November 30, ,922 5,950 6,427 Plenary Health Hamilton, LP 5.80% May 31, ,981 7,842 8,193 Plenary Properties LTAP, LP 6.29% January 31, ,080 32,739 35,407 Power Corp. Canada 8.57% April 22, ,745 9,083 10,224 Power Financial Corp., Note 6.90% March 11, ,084 12,280 13,042 Powerstream, Inc. 3.96% July 30, ,650 3,650 3,676 Royal Bank of Canada 4.93% July 16, ,732 26,178 29,007 Scotiabank Capital Trust, Series % December 31, 2056 (1) 20,474 21,133 24,824 SNC-Lavalin Innisfree McGill Finance, Inc. 6.63% June 30, ,187 29,026 30,671 Sun Life Capital Trust, Series B, Secured Note 7.09% June 30, ,561 6,410 6,445 Sun Life Financial, Inc., (MTN) 5.40% May 29, 2042 (1) 13,747 13,193 13,671 TD Capital Trust IV 10.00% June 30, 2108 (1) 13,789 14,569 20,099 The accompanying notes are an integral part of the financial statements. 148

149 BlackRock Canada Long Bond Index Fund Par (in 000s) Corporate (continued) Terasen Gas, Inc., (MTN) 6.00% October 02, ,786 7,061 7, % February 24, ,549 6,989 8,051 Terasen Gas, Inc., Note, (MTN) 6.95% September 21, ,465 1,899 2, % May 01, ,264 5,239 5, % February 26, ,379 4,538 5, % September 25, ,751 3,470 4,762 Terasen Gas, Inc., Senior Note, (MTN) 5.80% May 13, ,785 10,039 12,948 Toronto Hydro Corp., (MTN) 5.54% May 21, ,174 4,297 5,334 Toronto-Dominion Bank, Note 9.15% May 26, ,488 3,406 3,880 TransCanada PipeLines, Ltd. 8.05% February 17, ,756 15,118 17,510 TransCanada PipeLines, Ltd., (MTN) 4.55% November 15, ,986 6,289 6,554 TransCanada PipeLines, Ltd., Note, (MTN) 8.29% February 05, ,310 6,758 7, % April 15, ,447 19,691 22, % May 26, ,340 3,960 5, % August 07, ,374 13,999 16, % December 09, ,373 3,686 4,425 University of British Columbia, Series B, Note 4.82% July 26, ,461 1,461 1,656 University of Toronto 4.25% December 07, ,900 2,975 3,026 University of Toronto Governing Council, Senior Note 6.78% July 18, ,340 3,762 4,612 University of Windsor, Series A, Note 5.37% June 29, ,966 4,966 6,019 Vancouver International Airport Authority 7.43% December 07, 2026 (1) 4,167 5,941 5,956 Total Corporate 1,407,762 1,601,918 Total Fixed Income Investments 8,349,259 9,273,510 Portfolio Concentration (as a percentage of Net Assets) As at December 31, 2012 As at December 31, 2011 Portfolio by Category (%) (%) Federal Non-Agency Federal Agency Municipal Provincial Corporate Other Assets and Liabilities Total Investments 8,349,259 9,273,510 Other Assets and Liabilities 1.5% 144,933 Net Assets 9,418,443 (1) Variable rate security. Rate shown is as at report date. The accompanying notes are an integral part of the financial statements. 149

150 BlackRock Canada Long Government Bond Index Fund (Note 1) Statement of Net Assets As at December Assets Investments - at fair (Note 2) $ 420,300,009 $ 574,171,451 Cash 1,375,647 - Interest receivable 2,331,699 3,620,950 Accounts receivable from issue of units - 579,087, ,007,355 1,156,880,065 Liabilities Operating expenses payable 20,946 - Payables for investment purchases - 578,191,080 20, ,191,080 Net Assets $ 423,986,409 $ 578,688,985 Number of Units Issued and Outstanding (Note 8) 40,804,591 57,908,766 Net Assets per Unit $ $ 9.99 Investments at Cost $ 420,734,525 $ 574,570,130 Approved by BlackRock Asset Management Canada Limited, Manager of the Funds Eric Léveillé, Director Noel Archard, Director The accompanying notes are an integral part of the financial statements. 150

151 BlackRock Canada Long Government Bond Index Fund (Note 1) Statement of Operations For the Periods Ended December Revenue Interest income $ 19,296,649 $ - 19,296,649 - Expenses Custodian fees 16,470 - Fund accounting expenses 54,525 - Unitholder communication s Audit fees 12,459 - Securities filing fees 7,619 - Independent review committee fees Other operating expenses 2,226-93,762 - Net Investment Income for the Period 19,202,887 - Loss on Investments Net realized loss on sale of investments (1,667,786) - Net change in unrealized depreciation in of investments (35,837) (398,679) Net Loss on Investments (1,703,623) (398,679) Increase (Decrease) in Net Assets from Operations $ 17,499,264 $ (398,679) Increase (Decrease) in Net Assets from Operations per Unit $ 0.36 $ (0.01) Statement of Changes in Net Assets For the Periods Ended December Net Assets - Beginning of Period $ 578,688,985 $ - Increase (Decrease) in Net Assets from Operations 17,499,264 (398,679) Capital Transactions Proceeds from issue of units - 579,087,664 Reinvestment of distributions 19,203,691 - Redemption of units (172,201,840) - Net capital transactions (152,998,149) 579,087,664 Distributions From net investment income (19,203,691) - Total distributions (19,203,691) - Increase (Decrease) in Net Assets for the Period (154,702,576) 578,688,985 Net Assets - End of Period $ 423,986,409 $ 578,688,985 The accompanying notes are an integral part of the financial statements. 151

152 BlackRock Canada Long Government Bond Index Fund Par (in 000s) Fixed Income Investments Government Federal Non-Agency 33.3% Government of Canada 8.00% June 01, ,970 6,349 6, % June 01, ,137 5,940 5, % June 01, ,148 5,631 5, % June 01, ,501 7,848 7, % June 01, ,080 22,325 22, % June 01, ,202 24,997 25, % June 01, ,103 26,559 26, % June 01, ,716 28,761 29, % December 01, ,604 11,965 12, , ,002 Federal Agency 1.9% Asian Development Bank, Series MPLE, Senior Unsecured Note 4.65% February 16, Canada Post Corp. 4.08% July 16, ,034 1,199 1, % July 16, ,022 1,027 Inter-American Development Bank, Note 4.40% January 26, ,525 1,731 1,735 Royal Office Finance LP, Series A, Note 5.21% November 12, ,022 2,415 2,399 South Coast British Columbia Transportation Authority 4.65% June 20, % February 09, ,005 8,011 Municipal 2.1% Alberta Capital Finance Authority, (MTN) 4.45% December 15, City of Montreal 6.00% June 01, ,078 1,468 1,465 City of Ottawa 4.60% July 14, City of Toronto 5.20% June 01, ,200 1,479 1, % June 10, ,061 1,220 1,216 City of Vancouver 3.70% October 18, City of Winnipeg 5.20% July 17, Municipal Finance Authority of British Columbia 5.35% December 02, % April 06, % December 01, Peel Regional Municipality 5.10% June 29, ,068 1, % October 30, Par (in 000s) Municipal (continued) Regional Municipality of Halton 4.05% October 11, Regional Municipality of York 4.00% May 31, ,228 9,228 Provincial 60.2% Centre Hospitalier de L universite de Montreal 4.45% October 01, Financement-Quebec 5.25% June 01, ,409 2,999 2,974 Hydro Quebec 6.00% August 15, ,224 1, % February 15, ,662 4,824 4,811 Hydro Quebec, (MTN) 6.00% February 15, ,807 2,594 2,564 Hydro Quebec, Series 19, Note 6.50% February 15, ,386 4,949 4,885 Hydro Quebec, Series JM, Note 5.00% February 15, ,041 2,639 2,622 OPB Finance Trust 3.89% July 04, Province of Alberta 4.50% December 01, ,045 1,282 1,288 Province of Alberta Canada, (MTN) 2.90% September 20, Province of British Columbia 8.00% September 08, % August 23, % November 19, % June 18, ,850 5,110 5, % June 18, ,065 2,956 2, % June 18, ,037 1, % June 18, ,054 2,509 2, % June 18, ,946 5,856 5,865 Province of British Columbia, Unsecured Note 3.20% June 18, Province of British Columbia, (MTN) 5.62% August 17, 2028 (1) % June 18, ,850 3,662 3,668 Province of Manitoba 7.75% December 22, % March 05, % March 05, ,324 1, % March 05, ,378 1,659 1, % March 05, ,073 1,313 1, % March 05, ,445 1,638 1, % March 05, % March 05, Province of Manitoba, (MTN) 4.40% September 05, % March 05, The accompanying notes are an integral part of the financial statements. 152

153 BlackRock Canada Long Government Bond Index Fund Par (in 000s) Provincial (continued) Province of New Brunswick 2.85% June 02, ,350 1,343 1, % December 27, ,131 1, % January 27, ,042 1, % September 26, ,122 1, % March 26, ,379 1,602 1, % September 26, ,513 1,843 1, % June 03, ,307 1,610 1, % June 03, ,100 1,107 1,113 Province of Newfoundland 8.45% February 05, % April 17, ,036 1,413 1, % October 17, % October 17, % October 17, % April 17, % October 17, ,206 1,472 1,478 Province of Nova Scotia 4.90% June 01, % June 01, ,108 1,291 1, % June 01, ,003 1,224 1, % June 01, ,378 1,599 1, % June 02, ,500 11,558 11, % June 02, ,525 1,521 1,555 Province of Nova Scotia, (MTN) 5.80% June 01, ,072 1,436 1,444 Province of Nova Scotia, Series 9Z 6.60% June 01, Province of Ontario 2.85% June 02, ,400 4,396 4, % September 08, ,975 4,461 4, % February 07, ,360 1, % December 02, ,028 1,652 1, % June 02, ,261 1,963 1, % June 02, ,735 8,786 8, % March 08, ,630 10,842 10, % June 02, ,363 4,718 4, % March 08, ,197 8,465 8, % June 02, ,700 9,346 9, % June 02, ,778 9,394 9, % June 02, ,668 19,280 19,198 Province of Ontario, (MTN) 5.60% June 02, ,748 10,419 10,354 Province of Prince Edward Island 6.25% January 29, % June 15, % November 19, % May 19, % June 27, Province of Quebec 9.38% January 16, ,265 1,995 1, % June 01, ,021 1, % April 01, ,848 2,944 2, % October 01, ,637 3,541 3, % June 01, ,190 7,242 7, % December 01, ,255 7,131 7, % December 01, ,726 8,388 8, % December 01, ,522 13,391 13, % December 01, ,200 10,393 10,469 Par (in 000s) Provincial (continued) Province of Quebec, Senior Unsecured Note 3.00% September 01, ,300 2,297 2,304 Province of Saskatchewan 5.75% March 05, % September 05, ,014 1, % September 05, ,195 1, % September 05, % March 05, % June 01, ,615 2,043 2, % February 03, , ,259 Total Government 413, ,500 Corporate 1.6% Newfoundland & Labrador Hydro, Note 5.70% July 14, Ontario Electricity Financial Corp., Note 9.00% May 26, % May 26, ,346 1,318 Ontario Infrastructure Projects Corp., Note 4.70% June 01, Ontario School Boards Financing Corp. 5.80% November 07, % August 08, % June 25, Ontario School Boards Financing Corp., Note 5.48% November 26, % April 18, Ontario School Boards Financing Corp., Series 01A3 6.55% October 19, University of British Columbia, Series B, Note 4.82% July 26, University of Toronto 4.25% December 07, University of Toronto Governing Council, Senior Note 6.78% July 18, University of Windsor, Series A, Note 5.37% June 29, Total Corporate 6,869 6,800 Total Fixed Income Investments 420, ,300 Total Investments 420, ,300 Other Assets and Liabilities 0.9% 3,686 Net Assets 423,986 (1) Variable rate security. Rate shown is as at report date. The accompanying notes are an integral part of the financial statements. 153

154 BlackRock Canada Long Government Bond Index Fund Portfolio Concentration (as a percentage of Net Assets) As at December 31, 2012 As at December 31, 2011 Portfolio by Category (%) (%) Federal Non-Agency Federal Agency Municipal Provincial Corporate Other Assets and Liabilities The accompanying notes are an integral part of the financial statements. 154

155 BlackRock Canada All Government Bond Index Fund Statement of Net Assets As at December Assets Investments - at fair (Note 2) $ 157,484,364 $ 164,472,619 Cash 114, ,935 Interest receivable 737, ,572 Securities lending income receivable Accounts receivable from issue of units 6,000,000 - Accounts receivable for investment sales 559,714 2,532, ,897, ,926,765 Liabilities Operating expenses payable 24,737 25,673 Payables for redemption of units - 2,300,000 Payables for investment purchases 6,463, ,891 6,488,624 2,625,564 Net Assets $ 158,408,684 $ 165,301,201 Number of Units Issued and Outstanding (Note 8) 12,943,768 13,863,874 Net Assets per Unit $ $ Investments at Cost $ 149,654,767 $ 152,757,442 Approved by BlackRock Asset Management Canada Limited, Manager of the Funds Eric Léveillé, Director Noel Archard, Director The accompanying notes are an integral part of the financial statements. 155

156 BlackRock Canada All Government Bond Index Fund Statement of Operations For the Years Ended December Revenue Interest income $ 5,205,235 $ 5,847,238 Securities lending income 9,029 7,234 5,214,264 5,854,472 Expenses Custodian fees 9,727 6,859 Fund accounting expenses 40,751 44,837 Unitholder communication s Audit fees 18,871 19,749 Securities filing fees 2,568 2,622 Independent review committee fees Other operating expenses 553 1,925 72,543 76,780 Net Investment Income for the Year 5,141,721 5,777,692 Gain (Loss) on Investments Net realized gain on sale of investments 2,852, ,751 Net change in unrealized appreciation (depreciation) in of investments (3,885,580) 9,059,642 Net Gain (Loss) on Investments (1,033,278) 9,948,393 Increase in Net Assets from Operations $ 4,108,443 $ 15,726,085 Increase in Net Assets from Operations per Unit $ 0.32 $ 1.09 Statement of Changes in Net Assets For The Years Ended December Net Assets - Beginning of Year $ 165,301,201 $ 159,675,570 Increase in Net Assets from Operations 4,108,443 15,726,085 Capital Transactions Proceeds from issue of units 15,999,607 5,999,945 Reinvestment of distributions 8,113,271 6,672,826 Redemption of units (27,000,567) (16,100,399) Net capital transactions (2,887,689) (3,427,628) Distributions From net investment income (5,141,720) (5,776,753) From capital gains (2,971,551) (896,073) Total distributions (8,113,271) (6,672,826) Increase (Decrease) in Net Assets for the Year (6,892,517) 5,625,631 Net Assets - End of Year $ 158,408,684 $ 165,301,201 The accompanying notes are an integral part of the financial statements. 156

157 BlackRock Canada All Government Bond Index Fund Par (in 000s) Fixed Income Investments Government Federal Non-Agency 40.0% Government of Canada 1.00% February 01, ,628 1,628 1, % March 01, ,445 1,447 1, % May 01, ,580 1,569 1, % June 01, ,295 1,402 1, % June 01, ,310 2,363 2, % August 01, ,326 2,369 2, % November 01, ,425 1,422 1, % December 01, ,560 2,494 2, % February 01, ,250 2,244 2, % June 01, ,435 1,569 1, % June 01, ,727 1,758 1, % August 01, ,325 1,335 1, % December 01, ,025 2,105 2, % February 01, % June 01, ,495 1,597 1, % June 01, ,687 1,657 1, % September 01, ,603 1,653 1, % March 01, ,545 1,557 1, % June 01, ,667 1,837 1, % September 01, ,468 1,476 1, % March 01, % June 01, ,662 1,848 1, % June 01, ,956 3,156 3, % June 01, ,223 2,319 2, % March 15, % June 01, ,868 2,051 2, % June 01, ,917 2,052 2, % June 01, % June 01, % June 01, % June 01, % June 01, ,752 2,274 2, % June 01, ,885 2,483 2, % June 01, ,102 2,658 3, % June 01, ,530 3,189 3, % December 01, ,105 1,331 1,392 61,051 63,446 Federal Agency 16.6% Asian Development Bank, Series MPLE, Senior Unsecured Note 4.65% February 16, Canada Housing Trust 2.20% March 15, ,261 1,247 1, % June 15, ,400 1,403 1, % September 15, ,200 1,189 1, % December 15, ,300 1,306 1, % March 15, , % June 15, % December 15, ,350 1,384 1, % March 15, % December 15, ,050 1,048 1,145 Canada Housing Trust No % December 15, ,020 1,021 1, % December 15, ,400 1,400 1,443 Par (in 000s) Federal Agency (continued) 2.75% June 15, ,200 2,220 2, % December 15, ,900 1,920 1, % June 15, ,800 1,821 1, % December 15, ,050 2,048 2, % June 15, ,350 1,415 1, % March 15, ,200 1,217 1, % December 15, ,000 1,004 1,006 Canada Post Corp. 4.08% July 16, Inter-American Development Bank, Note 4.75% November 17, % January 26, Royal Office Finance LP, Series A, Note 5.21% November 12, South Coast British Columbia Transportation Authority 3.80% November 02, % February 09, ,406 26,233 Municipal 2.5% Alberta Capital Finance Authority, Note 3.05% June 15, % June 15, City of Montreal 4.95% December 10, % December 01, % December 01, % December 01, % June 01, City of Toronto 4.55% May 20, % July 28, % December 02, % December 06, % June 01, % June 10, City of Vancouver 3.70% October 18, City of Winnipeg 9.13% May 12, Municipal Finance Authority of British Columbia 4.65% April 19, % June 01, % April 23, % June 03, % June 01, % June 01, % June 01, % December 01, Peel Regional Municipality 5.10% June 29, % October 30, The accompanying notes are an integral part of the financial statements. 157

158 BlackRock Canada All Government Bond Index Fund Par (in 000s) Municipal (continued) PSP Capital, Inc. 2.94% December 03, % February 16, Regional Municipality of Halton 4.05% October 11, Regional Municipality of York 7.25% June 19, % June 30, % June 30, % May 31, Ville Montreal 5.00% December 01, ,605 3,884 Provincial 39.7% Centre Hospitalier de L universite de Montreal 4.45% October 01, City of Toronto 3.80% December 13, Financement-Quebec 4.25% March 01, % June 01, % December 01, % December 01, % December 01, % December 01, % December 01, % June 01, Hydro Quebec 9.63% July 15, % February 15, Hydro Quebec, (MTN) 6.00% February 15, Hydro Quebec, Series 19, Note 6.50% February 15, Hydro Quebec, Series HL, Note 11.00% August 15, Hydro Quebec, Series JM, Note 5.00% February 15, Ontario Electricity Financial Corp., Note 8.25% June 22, OPB Finance Trust 3.89% July 04, Province of Alberta 2.75% December 01, % September 01, % June 15, % December 01, % December 15, % December 01, Province of Alberta 1.70% December 15, Province of Alberta Canada, (MTN) 2.90% September 20, Par (in 000s) Provincial (continued) Province of British Columbia 5.30% June 18, % June 18, % December 01, % June 17, % December 18, % December 18, % May 15, % December 18, % December 18, % September 08, % August 23, % June 18, % June 18, % June 18, % June 18, % June 18, Province of British Columbia, Unsecured Note 3.20% June 18, Province of British Columbia, (MTN) 4.65% December 18, % June 18, Province of Manitoba 4.80% December 03, % December 03, % March 01, % December 01, % June 01, % June 03, % December 01, % March 05, % March 05, % March 05, % March 05, % March 05, % March 05, Province of Manitoba 4.75% February 11, Province of Manitoba, (MTN) 6.50% September 22, % November 15, % September 05, % March 05, Province of New Brunswick 4.50% February 04, % December 03, % July 21, % March 26, % June 03, % June 02, % December 03, % June 02, % December 27, % January 27, % September 26, % March 26, % September 26, The accompanying notes are an integral part of the financial statements. 158

159 BlackRock Canada All Government Bond Index Fund Par (in 000s) Provincial (continued) 4.80% June 03, % June 03, Province of Newfoundland 10.95% April 15, % February 05, % April 17, % October 17, % April 17, % October 17, Province of Nova Scotia 1.90% September 08, % November 25, % June 01, % December 01, % June 01, % June 01, % June 01, % June 01, % June 02, ,575 1,590 1, % June 02, Province of Nova Scotia, (MTN) 5.80% June 01, Province of Nova Scotia, Series 9Z 6.60% June 01, Province of Ontario 5.00% March 08, ,250 1,350 1, % September 08, % March 08, % September 08, % March 08, % September 08, % March 08, , % March 08, % June 02, ,450 1,532 1, % June 02, ,550 1,573 1, % June 02, ,650 1,716 1, % June 02, ,975 2,014 2, % June 02, % September 08, % February 07, % December 02, % June 02, % March 08, , % June 02, % March 08, % June 02, ,025 1,080 1, % June 02, , % June 02, ,600 1,731 1,960 Province of Ontario, (MTN) 5.50% June 02, % June 02, % June 02, ,112 1,270 Province of Ontario, Series HC 9.50% July 13, Province of Prince Edward Island 4.25% September 24, % November 19, % June 27, Par (in 000s) Provincial (continued) Province of Quebec 5.50% December 01, % December 01, % December 01, % December 01, % December 01, % December 01, ,075 1,137 1, % December 01, ,200 1,275 1, % December 01, ,175 1,219 1, % June 01, % April 01, % October 01, % June 01, % December 01, % December 01, % December 01, ,258 1,367 1, % December 01, ,015 1,132 1,155 Province of Quebec, Senior Unsecured Note 3.00% September 01, Province of Quebec, (MTN) 4.50% December 01, Province of Saskatchewan 3.90% July 28, % March 05, % September 05, % September 05, % September 05, % March 05, % June 01, % February 03, ,659 62,915 Total Government 148, ,478 Corporate 0.6% Cadillac view Finance Trust 3.24% January 25, % May 09, % January 25, CDP Financial, Inc. 4.60% July 15, Total Corporate 934 1,006 Total Fixed Income Investments 149, ,484 Total Investments 149, ,484 Other Assets and Liabilities 0.6% 925 Net Assets 158,409 The accompanying notes are an integral part of the financial statements. 159

160 BlackRock Canada All Government Bond Index Fund Portfolio Concentration (as a percentage of Net Assets) As at December 31, 2012 As at December 31, 2011 Portfolio by Category (%) (%) Federal Non-Agency Federal Agency Municipal Provincial Corporate Other Assets and Liabilities The accompanying notes are an integral part of the financial statements. 160

161 BlackRock Canada Credit-Screened Bond Index Fund Statement of Net Assets As at December Assets Investments - at fair (Note 2) $ 287,495,494 $ 159,333,440 Cash 1,971,035 90,824 Interest receivable 2,601,501 2,119,829 Securities lending income receivable Accounts receivable from issue of units 2,000, ,068, ,544,231 Liabilities Operating expenses payable 25,917 24,613 Payables for investment purchases 828, , , ,332 Net Assets $ 293,214,035 $ 161,078,899 Number of Units Issued and Outstanding (Note 8) 23,028,512 13,441,927 Net Assets per Unit $ $ Investments at Cost $ 281,466,695 $ 152,675,997 Approved by BlackRock Asset Management Canada Limited, Manager of the Funds Eric Léveillé, Director Noel Archard, Director The accompanying notes are an integral part of the financial statements. 161

162 BlackRock Canada Credit-Screened Bond Index Fund Statement of Operations For the Years Ended December Revenue Interest income $ 12,404,908 $ 8,008,348 Securities lending income 2, ,407,202 8,008,892 Expenses Custodian fees 10,776 4,788 Fund accounting expenses 43,894 44,734 Unitholder communication s Audit fees 18,917 19,744 Securities filing fees 4,785 2,546 Independent review committee fees Other operating expenses 1,123 1,907 79,607 74,501 Net Investment Income for the Year 12,327,595 7,934,391 Gain on Investments Net realized gain on sale of investments 4,968, ,860 Net change in unrealized appreciation (depreciation) in of investments (628,644) 4,474,837 Net Gain on Investments 4,339,753 5,207,697 Increase in Net Assets from Operations $ 16,667,348 $ 13,142,088 Increase in Net Assets from Operations per Unit $ 0.73 $ 0.96 Statement of Changes in Net Assets For the Years Ended December Net Assets - Beginning of Year $ 161,078,899 $ 158,937,726 Increase in Net Assets from Operations 16,667,348 13,142,088 Capital Transactions Proceeds from issue of units 225,268,922 2,999,781 Reinvestment of distributions 17,297,832 8,670,779 Redemption of units (109,801,134) (14,000,696) Net capital transactions 132,765,620 (2,330,136) Distributions From net investment income (12,327,823) (7,934,045) From capital gains (4,970,009) (736,734) Total distributions (17,297,832) (8,670,779) Increase in Net Assets for the Year 132,135,136 2,141,173 Net Assets - End of Year $ 293,214,035 $ 161,078,899 The accompanying notes are an integral part of the financial statements. 162

163 BlackRock Canada Credit-Screened Bond Index Fund Par (in 000s) Fixed Income Investments Corporate 98.0% 407 East Development Group General Partnership 2.81% December 18, International, Inc., (MTN) 3.88% June 16, % November 24, % June 16, % May 26, % November 15, ,100 1,148 1, % April 25, International, Inc., Series 06D1, Note 5.75% February 14, Aeroports De Montreal 5.17% September 17, , % October 16, Aimia, Inc. 4.35% January 22, Algonquin Power Co. 4.82% February 15, Alimentation Couche Tard, Inc. 2.86% November 01, % November 01, % November 01, Alliance Pipeline, LP, Senior Note 6.77% December 31, AltaGas Income Trust 5.49% March 27, AltaGas, Ltd., (MTN) 4.55% January 17, % September 28, AltaLink Investments, LP 3.67% June 05, AltaLink, LP, (MTN) 5.24% May 29, % November 28, % November 15, % November 08, % June 30, American Express Canada (MTN) 4.85% October 03, American Express Canada, Guaranteed Note, (MTN) 3.60% June 03, ,000 1,025 1,045 Bank of Montreal 3.93% April 27, ,675 1,766 1, % October 05, ,700 1,700 1, % March 10, ,050 1,077 1, % June 10, ,600 1,669 1, % August 02, ,700 1,718 1, % July 12, % December 11, ,450 1,450 1, % March 28, 2023 (1) % September 10, Par (in 000s) Corporate (continued) Bank of Montreal, (MTN) 3.98% July 08, 2021 (1) 1,200 1,264 1,268 Bank of Montreal, DPNT 5.18% June 10, ,000 1,106 1, % May 02, ,100 1,316 1,297 Bank of Nova Scotia 3.43% July 16, ,200 1,245 1, % November 18, ,500 1,558 1, % March 25, % May 08, ,000 1,012 1, % February 22, ,500 1,553 1, % December 01, % February 27, ,400 1,406 1, % June 08, ,531 1,562 1, % January 22, 2021 (1) 1,000 1,135 1, % October 18, 2024 (1) 1,600 1,600 1,617 Bank of Nova Scotia, (MTN) 2.90% August 03, 2022 (1) 1,000 1,000 1,018 BC Tel, Note 9.65% April 08, BCIMC Realty Corp. 2.65% June 29, % March 07, % June 29, BCIMC Realty Corp., (MTN) 4.65% February 10, % January 05, Bell Aliant Regional Communications, LP, (MTN) 6.29% February 17, % September 13, ,100 1,144 1,165 Bell Aliant Regional Communications, Note 5.41% September 26, ,350 1,469 1,474 Bell Canada 3.60% December 02, % March 16, ,500 1,598 1, % June 18, , , % May 19, Bell Canada, (MTN) 4.85% June 30, ,000 1,062 1, % February 15, ,000 1,103 1,101 Bell Canada, Note, (MTN) 7.85% April 02, % February 23, Bell Canada, Series M % March 16, BMO, Subordinated Notes, Trust 5.75% September 26, 2022 (1) BMW Canada, Inc. 2.76% April 01, % April 01, % August 10, % May 26, % November 27, The accompanying notes are an integral part of the financial statements. 163

164 BlackRock Canada Credit-Screened Bond Index Fund Par (in 000s) Corporate (continued) BP, LP 3.24% January 09, British Columbia Ferry Services, Inc., Note 5.02% March 20, British Columbia Ferry Services, Inc., Series 08-1, Senior Secured Note 5.58% January 11, British Columbia Ferry Services, Inc., Series B, Senior Secured Note 6.25% October 13, Broadway Credit Card Trust, Series A, Note 4.80% March 17, Brookfield Asset Management, Inc. 8.95% June 02, % April 25, Brookfield Asset Management, Inc., (MTN) 3.95% April 09, % March 01, % March 31, Brookfield Asset Management, Inc., Note 5.95% June 14, Brookfield Power Corp. 5.84% November 05, Brookfield Renewable Power, Inc., (MTN) 6.13% November 30, % October 13, ,250 1,272 1,363 BRP Finance ULC, (MTN) 4.79% February 07, Caisse Centrale Desjardins du Quebec 3.11% December 04, % June 08, ,000 1,000 1, % October 17, % October 05, Calloway Real Estate Investment Trust 5.37% October 12, ,400 1,485 1,515 Cameco Corp. 4.70% September 16, % September 02, % November 14, % November 14, Canadian Credit Card TST 2.31% April 24, % July 24, Canadian Imperial Bank of Commerce 3.30% November 19, % December 22, % March 02, ,600 1,654 1, % May 22, % January 14, ,200 2,282 2,289 Par (in 000s) Corporate (continued) 2.65% November 08, ,300 2,319 2, % July 14, ,319 1,407 1, % October 18, ,650 1,651 1, % April 30, 2020 (1) 1,000 1,000 1, % November 02, 2020 (1) 1,150 1,167 1,181 Canadian Pacific RR Co., Senior Unsecured Note, (MTN) 6.25% June 01, ,450 1,582 1,683 Canadian Tire Corp., Ltd. (MTN) 4.95% June 01, % June 01, % February 24, Canadian Utilities, Ltd., Series % May 01, Canadian Western Bank 2.38% September 14, % January 18, % November 30, 2020 (1) Capital City Link General Partnership 4.39% March 31, Capital Desjardins, Inc. 5.19% May 05, ,033 1, % November 23, 2020 (1) % June 01, 2021 (1) % December 15, 2026 (1) Capital Power, LP, (MTN) 4.60% December 01, % February 21, % November 16, Cards II Trust 3.10% September 15, % May 15, Caterpillar Financial Services, Ltd. 2.20% June 01, % June 01, CI Investments, Inc. 3.94% December 14, 2016 (1) CIBC Capital Trust 10.25% June 30, 2108 (1) 720 1,021 1,039 Co-Operators Financial Services 5.78% March 10, Cogeco Cable, Inc. 5.95% June 09, % November 16, % February 14, Cominar REIT, Senior Unsecured Note 4.23% December 04, Consumers Gas Corp., Ltd., Note, (MTN) 6.10% May 19, CU, Inc. 4.54% October 24, % September 10, % November 18, % September 11, The accompanying notes are an integral part of the financial statements. 164

165 BlackRock Canada Credit-Screened Bond Index Fund Par (in 000s) Corporate (continued) CU, Inc., (MTN) 5.10% November 18, % August 13, % November 21, % May 26, % March 07, CU, Inc., Note 6.15% November 22, CU, Inc., Note, (MTN) 5.56% October 30, Daimler Canada Finance, Inc. 3.16% April 14, % January 07, % September 14, % September 15, Eagle Credit Card Trust 3.47% December 17, Emera, Inc., (MTN) 4.10% October 20, % December 13, % December 02, Enbridge Gas Distribution, Inc., (MTN) 5.57% January 29, % September 24, % November 23, % November 22, Enbridge Gas Distribution, Inc., Note, (MTN) 4.77% December 17, % December 16, % February 25, Enbridge Income Fund, Inc. 3.94% January 13, Enbridge Income Fund, Inc., (MTN) 4.85% February 22, Enbridge Pipelines, Inc. 4.49% November 12, % November 10, Enbridge Pipelines, Inc., (MTN) 6.62% November 19, % April 06, % April 06, Enbridge Pipelines, Inc., Note, (MTN) 6.05% February 12, % December 19, Enbridge, Inc. 4.53% March 09, % December 05, Enbridge, Inc., (MTN) 5.17% May 19, % August 09, % September 02, % June 18, % November 14, Par (in 000s) Corporate (continued) 5.75% September 02, % August 27, Enersource Corp. 4.52% April 29, % April 29, Enmax Corp. 6.15% June 19, EPCOR Utilities, Inc. 6.80% June 28, EPCOR Utilities, Inc., (MTN) 5.80% January 31, % November 16, % April 15, % November 24, % February 28, fax Financial, Ltd. 7.50% August 19, % June 22, % May 25, % October 14, Fifth Avenue, LP 4.71% August 05, First Capital Realty, Inc. 5.48% July 30, % January 31, % December 05, Ford Credit Canada, Ltd. 4.88% March 17, % August 18, % February 08, % December 19, Fortis, Inc. 6.51% July 04, FortisAlberta, Inc. 5.40% April 21, % October 23, FortisAlberta, Inc., (MTN) 5.85% April 15, % October 30, % October 27, FortisAlberta, Inc., Senior Note 6.22% October 31, FortisBC, Inc., (MTN) 5.00% November 24, Gaz Metro, Inc., Guaranteed Note 5.45% July 12, ,765 2,085 2,113 GE Capital Canada Funding Co. 2.95% February 10, % February 08, GE Capital Canada Funding Co., (MTN) 4.40% June 01, % June 08, % June 01, % November 23, % August 17, ,100 1,103 1,246 The accompanying notes are an integral part of the financial statements. 165

166 BlackRock Canada Credit-Screened Bond Index Fund Par (in 000s) Corporate (continued) 3.55% June 11, % January 26, % October 22, ,250 1,390 1,542 George Weston, Ltd. 5.05% March 10, % March 01, George Weston, Ltd., (MTN) 3.78% October 25, % February 05, Glacier Credit Card Trust 3.16% November 20, % April 20, Golden Credit Card Trust 3.51% May 15, ,737 1,809 1,822 Great-West Lifeco Finance Delaware, LP II 7.13% June 26, 2068 (1) Great-West Lifeco Finance Delaware, LP, Subordinated Note 5.69% June 21, 2067 (1) Great-West Lifeco, Inc. 4.65% August 13, Great-West Lifeco, Inc., Note 6.67% March 21, Great-West Lifeco, Inc., Senior Unsecured Note 6.14% March 21, Greater Toronto Airports Authority 3.04% September 21, Greater Toronto Airports Authority, (MTN) 4.70% February 15, % June 01, % April 17, % November 20, % June 12, % June 04, % February 02, % February 25, ,050 1,172 1,246 Greater Toronto Airports Authority, Note, (MTN) 6.45% July 30, % October 15, H&R REIT 4.78% July 27, Halifax International Airport Authority 4.89% November 15, Health Montreal Collective, LP 6.72% September 30, ,300 1,511 1,578 Holcim Finance Canada, Inc., (MTN) 3.65% April 10, Honda Canada Finance, Inc. 2.28% December 11, Hospital Infrastructure Partners NOH Partnership 5.44% January 31, Par (in 000s) Corporate (continued) HSBC Bank of Canada 3.86% May 21, % November 23, % January 13, % October 04, % March 16, 2021 (1) HSBC Canada Asset Trust, Note 5.15% June 30, 2015 (1) Husky Energy, Inc. 5.00% March 12, ,000 1,116 1,129 Husky Energy, Inc., (MTN) 3.75% March 12, , ,037 Hydro One, Inc. 4.40% June 01, Hydro One, Inc., (MTN) 2.95% September 11, % March 03, % October 18, ,031 1,121 1, % January 13, % January 31, % May 20, % March 13, % March 03, % July 16, % September 26, % October 19, Hydro One, Inc., Note 7.35% June 03, Hydro One, Inc., Note, (MTN) 6.93% June 01, IGM Financial, Inc. 7.35% April 08, ,733 2,128 2, % December 10, IGM Financial, Inc., Note 7.00% December 31, Industrial Alliance Capital Trust, Note 5.13% June 30, 2019 (1) Intact Financial Corp., (MTN) 5.41% September 03, % August 18, % June 16, Integrated Team Solutions SJHC Partnership 5.95% November 30, Inter Pipeline Fund, (MTN) 3.84% July 30, % May 30, John Deere Canada Funding, Inc., (MTN) 2.30% July 05, % October 18, Laurentian Bank of Canada 2.45% February 13, Loblaw Cos., Ltd., (MTN) 4.85% May 08, % June 18, The accompanying notes are an integral part of the financial statements. 166

167 BlackRock Canada Credit-Screened Bond Index Fund Par (in 000s) Corporate (continued) 6.85% March 01, % February 17, % January 18, Lower Mattagami Energy, LP 2.23% October 23, % May 18, % May 18, Manufacturers Life Insurance Co. 4.21% November 18, 2021 (1) % June 01, 2022 (1) Manulife Financial Capital Trust II 7.41% December 31, 2108 (1) 1,078 1,192 1,260 Manulife Financial Corp. 7.77% April 08, Manulife Financial Corp., (MTN) 4.90% June 02, % June 26, % August 20, % June 26, Master Credit Card Trust 3.50% May 21, % January 21, ,112 1,124 1,133 Merrill Lynch Canada Finance Co., (MTN) 5.00% February 18, Metro, Inc., (MTN) 5.97% October 15, National Bank of Canada 2.23% January 30, % February 11, % May 26, % April 26, % December 15, National Bank of Canada, (MTN) 4.93% December 22, 2019 (1) % November 02, 2020 (1) % April 11, 2022 (1) NAV Canada 4.40% February 18, NAV Canada, (MTN) 4.71% February 24, NAV Canada, Note 7.56% March 01, ,125 1,473 1, % June 01, NBC Asset Trust 7.24% June 30, 2018 (1) NOVA Gas Transmission, Ltd., Series 21, Note 12.20% February 28, ,400 1,984 1,812 Nova Scotia Power, Inc., (MTN) 5.61% June 15, % March 06, Nova Scotia Power, Inc., Series S, Note, (MTN) 6.95% August 25, Par (in 000s) Corporate (continued) Ottawa MacDonald-Cartier International Airport Authority, Note 4.73% May 02, Pembina Pipeline Corp. (MTN) 4.89% March 29, % October 24, Plenary Health Bridgepoint, LP 7.25% August 31, Plenary Health Care Partnerships Humber, LP 4.90% May 31, % November 30, Plenary Health Hamilton, LP 5.80% May 31, Plenary Properties LTAP, LP 6.29% January 31, Power Corp. Canada 7.57% April 22, ,106 Power Financial Corp., Note 6.90% March 11, RBC Capital Trust 4.87% December 31, RBC Capital Trust Securities, Series 2018, Note 6.82% June 30, 2018 (1) Reliance, LP 4.57% March 15, % March 15, RioCan Real Estate Investment Trust 4.50% January 21, % March 01, % June 28, % December 13, RioCan Real Estate Investment Trust, (MTN) 5.65% March 31, Rogers Communications, Inc. 5.80% May 26, , % June 06, % November 04, % September 29, % March 22, ,300 1,429 1, % June 06, % November 04, % August 25, Rogers Communications, Inc., (MTN) 6.56% March 22, Royal Bank of Canada 3.27% November 10, % December 22, % January 13, ,150 1,153 1, % January 11, ,750 1,795 1, % July 26, % December 08, ,500 1,513 1, % January 25, ,600 1,593 1, % April 13, ,300 1,320 1,318 The accompanying notes are an integral part of the financial statements. 167

168 BlackRock Canada Credit-Screened Bond Index Fund Par (in 000s) Corporate (continued) 2.36% September 21, ,500 1,500 1, % March 30, ,024 1, % May 07, % June 15, 2020 (1) 1,600 1,688 1, % November 02, 2020 (1) 1,100 1,101 1, % December 06, 2024 (1) 1,500 1,500 1, % July 16, Royal Bank of Canada, (MTN) 3.18% March 16, Royal Bank of Canada, Senior Note 4.97% June 05, Royal Bank of Canada, Series 2014, Subordinated Note 5.95% June 18, Score Trust, Series , Note 4.95% February 20, Scotiabank Capital Trust, Series % December 31, 2056 (1) Scotiabank Tier I Capital Trust 7.80% June 30, 2108 (1) 1,000 1,232 1,264 Shaw Communications, Inc. 6.50% June 02, ,150 1,260 1, % October 01, ,500 1,622 1, % December 07, % November 09, ,500 1,546 1,666 Shaw Communications, Inc., Series N, Senior Note 6.15% May 09, SNC-Lavalin Innisfree McGill Finance, Inc. 6.63% June 30, ,296 1,266 Sobeys, Inc., (MTN) 6.06% October 29, % June 07, SP LP/SP1, LP 3.21% June 15, Standard Life Assurance Co. of Canada 3.94% September 21, 2022 (1) Sun Life Financial, Inc. 5.70% July 02, % August 23, % June 01, 2036 (1) Sun Life Financial, Inc., (MTN) 7.90% March 31, 2019 (1) % March 02, 2022 (1) % May 29, 2042 (1) Sun Life Financial, Inc., Senior Note, (MTN) 4.80% November 23, 2035 (1) TD Capital Trust III 7.24% December 31, 2018 (1) 1,000 1,245 1,241 TD Capital Trust IV 10.00% June 30, 2108 (1) % June 30, 2108 (1) 1,175 1,329 1,442 Par (in 000s) Corporate (continued) TELUS Corp. 4.95% May 15, % May 25, % March 15, % December 04, ,200 1,272 1, % July 23, , % March 15, TELUS Corp., Senior Unsecured Note 5.95% April 15, Teranet, LP 3.53% December 16, % December 16, % December 17, % June 17, Terasen Gas, Inc., (MTN) 6.00% October 02, Terasen Gas, Inc., Note, (MTN) 6.50% May 01, % February 26, Terasen Gas, Inc., Senior Note, (MTN) 5.80% May 13, Thomson Reuters Corp. 5.20% December 01, % July 15, % March 31, ,000 1,095 1, % September 30, ,000 1,094 1,093 Tim Hortons, Inc. 4.20% June 01, Toronto Hydro Corp. 4.49% November 12, % November 18, Toronto Hydro Corp., Note 5.15% November 14, Toronto-Dominion Bank 2.95% August 02, ,500 1,528 1,549 Toronto-Dominion Bank, (MTN) 5.48% April 02, 2020 (1) % November 02, 2020 (1) 1,000 1,018 1, % October 30, 2104 (1) % December 14, 2105 (1) 1,931 2,049 2, % December 18, 2106 (1) 2,000 2,257 2,291 Toyota Credit Canada, Inc. 2.45% February 27, Toyota Credit Canada, Inc., (MTN) 3.55% February 22, % October 19, TransAlta Corp., (MTN) 7.30% October 22, TransCanada PipeLines, Ltd. 8.05% February 17, TransCanada PipeLines, Ltd., (MTN) 4.65% October 03, % November 15, The accompanying notes are an integral part of the financial statements. 168

169 BlackRock Canada Credit-Screened Bond Index Fund Par (in 000s) Corporate (continued) TransCanada PipeLines, Ltd., Note, (MTN) 8.29% February 05, % April 15, ,140 1, % December 09, ,020 1,049 Union Gas, Ltd. 8.65% November 10, % June 21, Union Gas, Ltd., (MTN) 6.05% September 02, % July 23, Union Gas, Ltd., Series 1993, Note 8.75% August 03, Vancouver International Airport Authority 5.02% November 13, Veresen, Inc. 5.60% July 28, Veresen, Inc., (MTN) 3.95% March 14, Viterra, Inc. 6.41% February 16, VW Credit Canada, Inc. 2.50% June 01, % February 01, % October 11, % June 01, Wells Fargo Canada Corp., (MTN) 2.94% July 25, ,300 1,305 1,312 Wells Fargo Financial Canada Corp. 3.97% November 03, Wells Fargo Financial Canada Corp., (MTN) 4.38% June 30, ,400 1,483 1, % March 30, % February 09, ,796 1,796 1,827 Westcoast Energy, Inc. 3.28% January 15, % July 02, % December 05, % December 18, Westcoast Energy, Inc., (MTN) 5.60% January 16, % October 28, % March 20, % October 28, Westcoast Energy, Inc., Note 8.85% July 21, Par (in 000s) Corporate (continued) Winnipeg Airport Authority, Inc. 4.57% November 20, Total Corporate 281, ,495 Total Fixed Income Investments 281, ,495 Total Investments 281, ,495 Other Assets and Liabilities 2.0% 5,719 Net Assets 293,214 (1) Variable rate security. Rate shown is as at report date. Portfolio Concentration (as a percentage of Net Assets) As at December 31, 2012 As at December 31, 2011 Portfolio by Category (%) (%) Corporate Other Assets and Liabilities The accompanying notes are an integral part of the financial statements. 169

170 BlackRock Canada CoreActive Universe Bond Fund Statement of Net Assets As at December Assets Investments - at fair (Note 2) $ 95,520,189 $ 90,790,978 Cash 327,446 1,385,548 Margin due from brokers 159,519 61,181 Interest receivable 573, ,929 Securities lending income receivable Accounts receivable from issue of units 135, ,000 96,716,474 93,126,764 Liabilities Operating expenses payable 29,759 30,149 Payables for investment purchases 203,633 1,095, ,392 1,125,797 Net Assets $ 96,483,082 $ 92,000,967 Net Assets per Class Class A $ 96,483,082 $ 92,000,967 $ 96,483,082 $ 92,000,967 Number of Units Issued and Outstanding (Note 8) Class A 4,618,451 4,569,831 Net Assets per Unit Class A $ $ Investments at Cost $ 92,277,353 $ 84,908,363 Approved by BlackRock Asset Management Canada Limited, Manager of the Funds Eric Léveillé, Director Noel Archard, Director The accompanying notes are an integral part of the financial statements. 170

171 BlackRock Canada CoreActive Universe Bond Fund Statement of Operations For the Years Ended December Revenue Interest income $ 3,363,459 $ 3,984,782 Securities lending income 2, Net gain (loss) from futures contracts (9,312) 383,252 Foreign exchange gain (loss) (77) 85 3,356,812 4,368,866 Expenses Custodian fees 5,314 4,010 Fund accounting expenses 57,742 56,753 Unitholder communication s Audit fees 23,939 25,044 Securities filing fees 1,548 1,373 Independent review committee fees Other operating expenses 817 1,812 89,404 89,699 Net Investment Income for the Year 3,267,408 4,279,167 Gain on Investments Net realized gain on sale of investments 2,792, ,220 Transaction s (Note 2,13) (13,359) (14,061) Net change in unrealized appreciation (depreciation) in of investments (2,639,779) 3,889,703 Net Gain on Investments 139,125 4,775,862 Increase in Net Assets from Operations $ 3,406,533 $ 9,055,029 Increase in Net Assets from Operations per Class Class A $ 3,406,533 $ 9,055,029 $ 3,406,533 $ 9,055,029 Increase in Net Assets from Operations per Unit Class A $ 0.75 $ 1.86 The accompanying notes are an integral part of the financial statements. 171

172 BlackRock Canada CoreActive Universe Bond Fund Statement of Changes in Net Assets For the Years Ended December Net Assets - Beginning of Year $ 92,000,967 $ 92,745,951 $ 92,000,967 $ 92,745,951 Increase in Net Assets from Operations 3,406,533 9,055,029 3,406,533 9,055,029 Capital Transactions Proceeds from issue of units 4,088,305 6,088,623 4,088,305 6,088,623 Reinvestment of distributions 3,257,828 4,158,367 3,257,828 4,158,367 Redemption of units (3,012,723) (15,888,636) (3,012,723) (15,888,636) Net capital transactions 4,333,410 (5,641,646) 4,333,410 (5,641,646) Distributions From net investment income (3,257,828) (4,158,367) (3,257,828) (4,158,367) Total distributions (3,257,828) (4,158,367) (3,257,828) (4,158,367) Increase (Decrease) in Net Assets for the Year 4,482,115 (744,984) 4,482,115 (744,984) Net Assets - End of Year $ 96,483,082 $ 92,000,967 $ 96,483,082 $ 92,000,967 Fund Class A The accompanying notes are an integral part of the financial statements. 172

173 BlackRock Canada CoreActive Universe Bond Fund Par (in 000s) Fixed Income Investments Government Federal Non-Agency 28.6% Government of Canada 1.00% February 01, % March 01, % May 01, % June 01, ,580 1,623 1, % August 01, ,600 1,648 1, % November 01, % December 01, ,280 1,279 1, % February 01, % June 01, ,084 1, % June 01, % August 01, % December 01, % February 01, % June 01, % June 01, ,240 1,276 1, % September 01, % March 01, % June 01, % September 01, % March 01, % June 01, % June 01, ,266 1,423 1, % June 01, % March 15, % June 01, % June 01, % June 01, % June 01, % June 01, % June 01, % June 01, ,115 1, % June 01, ,255 1, % June 01, ,311 1, % June 01, ,123 1,498 1, % December 01, ,508 27,559 Federal Agency 12.3% Asian Development Bank, Series MPLE, Senior Unsecured Note 4.65% February 16, Canada Housing Trust 2.20% March 15, % June 15, % September 15, % March 15, ,000 1,048 1, % December 15, % March 15, % December 15, Canada Housing Trust No % December 15, % December 15, % June 15, , , % December 15, ,500 1,517 1, % June 15, Par (in 000s) Federal Agency (continued) 1.70% December 15, % June 15, % March 15, % December 15, Inter-American Development Bank, Note 4.75% November 17, % January 26, ,653 11,871 Municipal 1.6% City of Montreal 6.00% June 01, City of Toronto 4.90% October 29, % June 01, City of Winnipeg 9.13% May 12, Municipal Finance Authority of British Columbia 3.00% June 01, % June 03, % June 01, % December 02, Peel Regional Municipality 3.85% October 30, Regional Municipality of York 4.50% June 30, % June 30, ,394 1,512 Provincial 26.2% City of Toronto 3.80% December 13, Financement-Quebec 3.50% December 01, % December 01, % December 01, % December 01, % June 01, Hydro Quebec 5.00% February 15, Hydro Quebec, (MTN) 6.00% February 15, Hydro Quebec, Series 19, Note 6.50% February 15, Hydro Quebec, Series JM, Note 5.00% February 15, Ontario Electricity Financial Corp., Note 8.25% June 22, Province of Alberta 2.75% December 01, % September 01, % June 15, % December 01, The accompanying notes are an integral part of the financial statements. 173

174 BlackRock Canada CoreActive Universe Bond Fund Par (in 000s) Provincial (continued) 2.55% December 15, % December 01, Province of British Columbia 4.10% December 18, % December 18, % December 18, % December 18, % June 18, % June 18, % June 18, % June 18, Province of British Columbia, (MTN) 4.65% December 18, % June 18, Province of Manitoba 5.20% December 03, % June 03, % March 05, % March 05, % March 05, Province of Manitoba, (MTN) 4.40% September 05, Province of New Brunswick 4.50% February 04, % July 21, % March 26, % June 03, % December 03, % December 27, % January 27, % September 26, % March 26, % September 26, % June 03, Province of Newfoundland 5.25% June 04, % April 17, % October 17, % April 17, % October 17, Province of Nova Scotia 4.60% August 18, % September 08, % November 25, % June 01, % June 01, % June 01, % June 02, Province of Nova Scotia, (MTN) 5.80% June 01, Province of Nova Scotia, Series 9Z 6.60% June 01, Province of Ontario 5.00% March 08, % March 08, % September 08, % March 08, Par (in 000s) Provincial (continued) 4.40% June 02, % June 02, % June 02, % June 02, % June 02, % September 08, % June 02, % March 08, % June 02, % March 08, % June 02, % June 02, % June 02, Province of Ontario, (MTN) 5.60% June 02, Province of Prince Edward Island 4.25% September 24, % May 19, Province of Quebec 5.50% December 01, % December 01, % December 01, % December 01, % December 01, % December 01, % December 01, % April 01, % October 01, % June 01, % December 01, % December 01, % December 01, % December 01, Province of Quebec, Senior Unsecured Note 3.00% September 01, Province of Quebec, (MTN) 4.50% December 01, Province of Saskatchewan 3.90% July 28, % March 05, % September 05, % September 05, % September 05, % March 05, % June 01, ,338 25,312 Total Government 64,893 66,254 Corporate 30.3% 407 International, Inc., (MTN) 3.88% June 16, % June 16, % November 15, % April 25, International, Inc., Series 06D1, Note 5.75% February 14, The accompanying notes are an integral part of the financial statements. 174

175 BlackRock Canada CoreActive Universe Bond Fund Par (in 000s) Corporate (continued) Aeroports de Montreal 5.17% September 17, Alliance Pipeline, LP, Senior Note 5.55% December 31, AltaGas, Ltd., (MTN) 4.55% January 17, AltaLink, LP, (MTN) 4.46% November 08, American Express Canada, Guaranteed Note, (MTN) 3.60% June 03, Bank of Montreal 1.89% October 05, % March 10, % June 10, % August 02, % July 12, % December 11, % September 10, Bank of Nova Scotia 3.61% February 22, % February 27, % January 22, 2021 (1) % October 18, 2024 (1) Bank of Nova Scotia, (MTN) 2.90% August 03, 2022 (1) BCIMC Realty Corp. 2.65% June 29, % March 07, % June 29, Bell Aliant Regional Communications, LP, (MTN) 6.29% February 17, % April 26, Bell Aliant Regional Communications, Note 5.41% September 26, Bell Canada 4.40% March 16, % June 18, Brookfield Asset Management, Inc., (MTN) 5.30% March 01, Brookfield Renewable Power, Inc., (MTN) 6.13% November 30, % October 13, Cadillac view Finance Trust 3.24% January 25, % May 09, % January 25, Caisse Centrale Desjardins du Quebec 3.50% October 05, Canadian Credit Card TST 3.44% July 24, Par (in 000s) Corporate (continued) Canadian Imperial Bank of Commerce 2.20% May 22, % January 14, % November 08, % October 18, % November 02, 2020 (1) Canadian Natural Resources, Ltd., (MTN) 3.05% June 19, Canadian Western Bank 4.39% November 30, 2020 (1) % December 17, 2024 (1) Capital Desjardins, Inc. 5.19% May 05, % November 23, 2020 (1) Capital Power, LP, (MTN) 4.60% December 01, Cards II Trust 3.10% September 15, Caterpillar Financial Services, Ltd. 2.20% June 01, % June 01, CDP Financial, Inc. 4.60% July 15, CI Investments, Inc. 3.94% December 14, 2016 (1) CIBC Capital Trust 10.25% June 30, 2108 (1) Co-Operators Financial Services 5.78% March 10, CU, Inc. 3.81% September 10, % November 18, % September 11, CU, Inc., Note, (MTN) 5.90% November 20, Enbridge, Inc. 3.19% December 05, Enbridge, Inc., (MTN) 4.24% August 27, EPCOR Utilities, Inc., (MTN) 4.55% February 28, fax Financial, Ltd. 6.40% May 25, Fifth Avenue, LP 4.71% August 05, GE Capital Canada Funding Co. 2.95% February 10, GE Capital Canada Funding Co., (MTN) 4.24% June 08, George Weston, Ltd., (MTN) 3.78% October 25, Glacier Credit Card Trust 2.39% April 20, The accompanying notes are an integral part of the financial statements. 175

176 BlackRock Canada CoreActive Universe Bond Fund Par (in 000s) Corporate (continued) Golden Credit Card Trust 3.51% May 15, Great-West Lifeco, Inc. 4.65% August 13, Greater Toronto Airports Authority, (MTN) 5.00% June 01, % June 07, % February 25, Health Montreal Collective, LP 6.72% September 30, Holcim Finance Canada, Inc., (MTN) 3.65% April 10, Honda Canada Finance, Inc. 2.28% December 11, HSBC Bank of Canada 3.86% May 21, % November 23, % January 13, % October 04, % March 16, 2021 (1) Husky Energy, Inc., (MTN) 3.75% March 12, Hydro One, Inc., (MTN) 2.95% September 11, % January 13, % July 16, Hydro One, Inc., Note 7.35% June 03, Intact Financial Corp., (MTN) 5.41% September 03, % August 18, Inter Pipeline Fund, (MTN) 3.84% July 30, % May 30, Loblaw Cos., Ltd., (MTN) 5.90% January 18, Lower Mattagami Energy, LP 2.23% October 23, Manitoba Telecom Services, Inc., (MTN) 6.15% June 10, Manufacturers Life Insurance Co. 4.17% June 01, 2022 (1) Manulife Financial Corp., (MTN) 4.08% August 20, Master Credit Card Trust 2.63% January 21, Metro, Inc., (MTN) 5.97% October 15, National Bank of Canada 2.23% January 30, % April 26, % August 21, Par (in 000s) Corporate (continued) National Bank of Canada, (MTN) 4.93% December 22, 2019 (1) % April 11, 2022 (1) NAV Canada, (MTN) 4.71% February 24, Newfoundland & Labrador Hydro, Series X, Note 10.25% July 14, NOVA Gas Transmission, Ltd., Series 21, Note 12.20% February 28, Nova Scotia Power, Inc., (MTN) 4.15% March 06, Nova Scotia PowerCorp., Note, (MTNF) 8.85% May 19, OMERS Realty CTT 4.05% May 05, Ontario School Boards Financing Corp. 5.80% November 07, Ontario School Boards Financing Corp., Note 7.20% June 09, % November 26, Pembina Pipeline Corp. (MTN) 4.89% March 29, Plenary Health Care Partnerships Humber, LP 4.82% November 30, Reliance, LP 4.57% March 15, % March 15, RioCan Real Estate Investment Trust 3.72% December 13, Rogers Communications, Inc. 5.80% May 26, % June 06, % September 29, % March 22, % June 06, % August 25, Royal Bank of Canada 2.05% January 13, % July 26, % December 08, % April 13, % September 21, % December 06, 2024 (1) Scotiabank Tier I Capital Trust 7.80% June 30, 2108 (1) Shaw Communications, Inc. 6.50% June 02, % October 01, % December 07, % November 09, The accompanying notes are an integral part of the financial statements. 176

177 BlackRock Canada CoreActive Universe Bond Fund Par (in 000s) Corporate (continued) SP LP/SP1, LP 3.21% June 15, Sun Life Financial, Inc. 4.57% August 23, TELUS Corp. 4.95% May 15, % May 25, % July 23, Teranet, LP 3.53% December 16, % December 17, Thomson Reuters Corp. 6.00% March 31, Toronto Hydro Corp. 4.49% November 12, Toronto-Dominion Bank 2.95% August 02, Toronto-Dominion Bank, (MTN) 3.37% November 02, 2020 (1) % December 14, 2105 (1) Toyota Credit Canada, Inc., (MTN) 2.20% October 19, TransCanada PipeLines, Ltd., (MTN) 3.65% November 15, % November 15, Union Gas, Ltd. 4.88% June 21, University of British Columbia, Series B, Note 4.82% July 26, Veresen, Inc. 5.60% July 28, VW Credit Canada, Inc. 2.50% June 01, % June 01, Wells Fargo Canada Corp., (MTN) 2.94% July 25, Wells Fargo Financial Canada Corp. 3.97% November 03, Wells Fargo Financial Canada Corp., (MTN) 2.77% February 09, Westcoast Energy, Inc. 3.28% January 15, % July 02, % December 05, Par (in 000s) Corporate (continued) Winnipeg Airport Authority, Inc. 4.57% November 20, Total Corporate 27,384 29,266 Total Fixed Income Investments 92,277 95,520 Total Investments 92,277 95,520 Other Assets and Liabilities 1.0% 963 Net Assets 96,483 (1) Variable rate security. Rate shown is as at report date. Portfolio Concentration (as a percentage of Net Assets) As at December 31, 2012 As at December 31, 2011 Portfolio by Category (%) (%) Federal Non-Agency Federal Agency Municipal Provincial Corporate Other Assets and Liabilities Open futures contracts held by the Fund as at December 31, 2012 are shown in Note 4. The accompanying notes are an integral part of the financial statements. 177

178 BlackRock Canada CorePlus Long Bond Fund Statement of Net Assets As at December Assets Investments - at fair (Note 2) $ 1,586,517,387 $ 1,144,650,287 Cash 3,800,274 4,781,372 Net unrealized gain on forward currency contracts (Note 5) 464,936 10,507,886 Interest receivable 7,533,159 9,472,015 1,598,315,756 1,169,411,560 Liabilities Operating expenses payable 32,515 26,865 Financing charges payable 379, ,391 Payables for investment purchases - 2,558,619 Payable for repurchase agreements (Note 7) 516,652, ,091,386 Net unrealized loss on forward currency contracts (Note 5) 1,712,157 4,137, ,776, ,020,183 Net Assets $ 1,079,539,354 $ 770,391,377 Number of Units Issued and Outstanding (Note 8) 64,423,632 49,651,522 Net Assets per Unit $ $ Investments at Cost $ 1,437,571,271 $ 1,005,728,237 Approved by BlackRock Asset Management Canada Limited, Manager of the Funds Eric Léveillé, Director Noel Archard, Director The accompanying notes are an integral part of the financial statements. 178

179 BlackRock Canada CorePlus Long Bond Fund Statement of Operations For the Years Ended December Revenue Interest income $ 41,281,643 $ 28,975,694 Net gain (loss) from futures contracts 3,370 (670,721) Foreign exchange gain (loss) (10,660) 86,500 41,274,353 28,391,473 Expenses Custodian fees 36,872 22,629 Fund accounting expenses 90,020 81,346 Unitholder communication s Audit fees 14,662 15,358 Securities filing fees 16,621 9,613 Financing charges 5,342,119 3,477,812 Independent review committee fees Other operating expenses 2,725 2,638 5,503,400 3,610,744 Net Investment Income for the Year 35,770,953 24,780,729 Gain on Investments Net realized gain on sale of investments 15,482,366 7,617,176 Net realized gain (loss) from forward currency contracts 20,557,136 (6,053,354) Transaction s (Note 2,13) - (36,085) Net change in unrealized appreciation in of investments 10,024, ,650,397 Net change in unrealized depreciation in of forward currency contracts (7,617,185) (1,410,224) Net Gain on Investments 38,446, ,767,910 Increase in Net Assets from Operations $ 74,217,336 $ 128,548,639 Increase in Net Assets from Operations per Unit $ 1.21 $ 2.77 Statement of Changes in Net Assets For the Years Ended December Net Assets - Beginning of Year $ 770,391,377 $ 590,738,796 Increase in Net Assets from Operations 74,217, ,548,639 Capital Transactions Proceeds from issue of units 234,930,641 51,103,942 Reinvestment of distributions 72,962,271 25,416,352 Net capital transactions 307,892,912 76,520,294 Distributions From net investment income (57,408,975) (17,733,965) From capital gains (15,553,296) (7,682,387) Total distributions (72,962,271) (25,416,352) Increase in Net Assets for the Year 309,147, ,652,581 Net Assets - End of Year $ 1,079,539,354 $ 770,391,377 The accompanying notes are an integral part of the financial statements. 179

180 BlackRock Canada CorePlus Long Bond Fund Statement of Cash Flow For the Years Ended December Cash Used in Operating Activities Net investment income for the years $ 35,770,953 $ 24,780,729 Changes in Working Capital Balances Relating to Operations Purchase of investment securities* (694,986,575) (396,931,817) Proceeds from disposition of investment securities 278,625, ,974,955 Transaction s - (36,085) Increase in margin due from brokers - 2,332,114 Decrease (Increase) in interest receivable 1,938,856 (4,578,833) Increase in operating expenses payable 5,650 4,729 Increase (Decrease) in financing charges payable 174,152 (650,250) Increase (Decrease) in payable for investment purchases (2,558,619) 2,558,619 Net realized gain(loss) from forward currency contract 20,557,136 (6,053,354) (396,243,493) (111,379,922) Net Cash Used in Operating Activities (360,472,540) (89,599,193) Financing Activities Proceeds from issuance of units* 234,930,641 - Proceeds from repurchase agreements 124,560,801 83,251,202 Net Cash Provided by Financing Activities 359,491,442 83,251,202 Net Decrease in Cash and Cash Equivalent $ (981,098) $ (3,347,991) Cash - Beginning of Year $ 4,781,372 $ 8,129,363 Cash - End of Year $ 3,800,274 $ 4,781,372 * Excluding in-kind activity as follows: - Purchase of investment securities (2011, $51,103,942) - Proceeds from issuance of units (2011, $51,103,942) The accompanying notes are an integral part of the financial statements. 180

181 BlackRock Canada CorePlus Long Bond Fund Par (000s)/ Fixed Income Investments Government Federal Non-Agency 25.7% Government of Canada 8.00% June 01, ,737 12,073 12, % June 01, ,258 10,887 10, % June 01, ,330 10,131 11, % June 01, ,235 14,467 15, % June 01, ,741 38,127 44, % June 01, ,972 42,774 49, % June 01, ,674 48,312 52, % June 01, ,894 55,970 57, % December 01, ,890 23,570 23, , ,967 Federal Agency 1.4% Asian Development Bank, Series MPLE, Senior Unsecured Note 4.65% February 16, ,000 1,964 2,335 Canada Post Corp. 4.08% July 16, ,567 1,819 1, % July 16, ,500 1,850 1,883 Inter-American Development Bank, Note 4.40% January 26, ,900 3,709 4,437 Royal Office Finance LP, Series A, Note 5.21% November 12, ,236 3,323 3,839 South Coast British Columbia Transportation Authority 3.85% February 09, ,381 15,026 Municipal 1.4% City of Montreal 6.00% June 01, ,800 2,226 2,446 City of Ottawa 4.60% July 14, ,000 1,107 1,136 City of Toronto 5.20% June 01, ,112 2,282 2, % June 10, ,806 1,986 2,070 City of Vancouver 3.70% October 18, Municipal Finance Authority of British Columbia 4.98% April 06, % December 01, ,700 1,684 1,994 Peel Regional Municipality 5.10% June 29, ,500 1,675 1, % October 30, ,100 1,094 1,112 Regional Municipality of York 4.00% May 31, % November 18, ,269 15,441 Par (000s)/ Provincial 47.5% Centre Hospitalier de L universite de Montreal 4.45% October 01, City of Toronto 3.80% December 13, ,200 1,196 1,195 Financement-Quebec 5.25% June 01, ,600 5,686 5,679 Hydro Quebec 5.00% February 15, ,300 8,517 9,590 Hydro Quebec, (MTN) 6.00% February 15, ,900 4,612 5,534 Hydro Quebec, Series 19, Note 6.50% February 15, ,800 9,712 9,810 Hydro Quebec, Series JM, Note 5.00% February 15, ,450 4,812 5,717 Ontario Electricity Financial Corp., Note 8.25% June 22, ,000 5,620 6,214 Province of Alberta 4.50% December 01, ,400 2,437 2,959 Province of Alberta Canada, (MTN) 2.90% September 20, ,300 1,276 1,277 Province of British Columbia 8.00% September 08, ,300 1,782 1, % November 19, ,000 2,754 2, % June 18, ,300 8,263 9, % June 18, ,750 5,011 5, % June 18, ,700 2,251 2, % June 18, ,100 4,323 5, % June 18, ,200 12,005 12,095 Province of British Columbia, Unsecured Note 3.20% June 18, ,500 1,485 1,477 Province of British Columbia, (MTN) 4.95% June 18, ,600 5,906 7,208 Province of Manitoba 7.75% December 22, ,000 1,367 1, % March 05, ,700 2,148 2, % March 05, ,300 2,199 2, % March 05, ,050 3,998 4, % March 05, ,600 2,648 2, % March 05, ,000 1,188 1, % March 05, ,500 1,516 1,508 Province of Manitoba, (MTN) 4.40% September 05, ,500 1,571 1, % March 05, ,000 1,435 1,410 Province of New Brunswick 2.85% June 02, ,000 1,992 1, % December 27, ,000 3,299 3, % January 27, ,100 1,324 1, % September 26, ,020 2,003 2, % March 26, ,775 2,773 3, % September 26, ,075 3,162 3, % June 03, ,200 2,527 2, % June 03, ,200 1,196 1,214 The accompanying notes are an integral part of the financial statements. 181

182 BlackRock Canada CorePlus Long Bond Fund Par (000s)/ Provincial (continued) Province of Newfoundland 8.45% February 05, ,154 1, % April 17, ,350 3,918 4, % October 17, ,000 1,447 1, % October 17, ,000 1,118 1, % April 17, % October 17, ,500 2,545 3,063 Province of Nova Scotia 6.60% December 01, ,155 1, % June 01, ,490 3,318 4, % June 01, ,000 2,427 2, % June 01, ,700 3,154 3, % June 02, ,650 25,884 26, % June 02, ,950 2,999 3,008 Province of Nova Scotia, (MTN) 5.80% June 01, ,200 1,613 1,617 Province of Nova Scotia, Series 9Z 6.60% June 01, ,199 1,349 Province of Ontario 2.85% June 02, ,500 7,496 7, % September 08, ,600 9,145 9, % February 07, ,500 3,639 3, % December 02, ,000 6,158 6, % June 02, ,850 15,135 16, % March 08, ,500 18,912 20, % June 02, ,800 9,528 9, % March 08, ,870 15,492 17, % June 02, ,300 16,924 18, % June 02, ,801 17,152 20, % June 02, ,600 32,695 35,043 Province of Ontario, (MTN) 5.60% June 02, ,070 18,109 20,139 Province of Prince Edward Island 6.25% January 29, % June 15, % November 19, % May 19, , % June 27, Province of Quebec 9.38% January 16, ,000 4,479 4, % June 01, ,000 2,475 2, % April 01, ,000 3,166 3, % October 01, ,750 7,683 9, % June 01, ,160 13,604 15, % December 01, ,500 13,335 14, % December 01, ,150 13,849 16, % December 01, ,368 24,317 26, % December 01, ,300 19,251 19,686 Province of Quebec, Senior Unsecured Note 3.00% September 01, ,400 4,394 4,408 Province of Saskatchewan 5.75% March 05, ,250 1,413 1, % September 05, ,900 2,591 2, % September 05, ,700 2,403 2, % September 05, ,000 1,399 1,375 Par (000s)/ Provincial (continued) 5.00% March 05, ,100 1,441 1, % June 01, ,550 3,574 4, % February 03, ,500 1,537 1, , ,342 Total Government 755, ,776 Corporate 22.4% 407 International, Inc., (MTN) 4.45% November 15, ,453 2,636 2, % April 25, % September 11, International, Inc., Series 04A3 5.96% December 03, ,500 2,912 3, International, Inc., Series 06D1, Note 5.75% February 14, ,100 1,340 1, International, Inc., Series 99A2, Senior Note 6.47% July 27, ,225 2,575 2,985 Aeroports de Montreal 5.17% September 17, ,200 2,172 2, % October 16, % April 16, ,480 1,491 1,876 Alliance Pipeline, LP, Senior Note 5.55% December 31, Alliance Pipeline, LP, Series A, Senior Note 7.18% June 30, ,762 2,068 2,145 AltaLink, LP 5.38% March 26, AltaLink, LP, (MTN) 4.87% November 15, % November 08, % June 30, AltaLink, LP, Secured Note, (MTN) 5.25% September 22, , ,213 Arrow Lakes Power 5.52% April 05, Bank of Montreal 4.61% September 10, ,800 1,953 2,056 Bell Aliant Regional Communications, (MTN) 6.17% February 26, Bell Canada 6.55% May 01, ,500 2,589 3,093 Bell Canada, Note, (MTN) 7.85% April 02, ,000 1,330 1, % February 23, ,300 2,327 3,065 Bell Canada, Series M % March 16, ,100 2,015 2,553 British Columbia Ferry Services, Inc., Note 5.02% March 20, The accompanying notes are an integral part of the financial statements. 182

183 BlackRock Canada CorePlus Long Bond Fund Par (000s)/ Corporate (continued) British Columbia Ferry Services, Inc., Series 08-1, Senior Secured Note 5.58% January 11, British Columbia Ferry Services, Inc., Series B, Senior Secured Note 6.25% October 13, ,100 1,226 1,426 Brookfield Asset Management, Inc., (MTN) 4.54% March 31, ,000 1,000 1,030 Brookfield Asset Management, Inc., Note 5.95% June 14, , Brookfield Power Corp. 5.84% November 05, ,000 1,931 1,997 Cameco Corp. 5.09% November 14, Canadian Pacific RR Co., (MTN) 6.45% November 17, ,500 1,576 1,844 Canadian Tire Corp., Ltd. (MTN) 6.32% February 24, ,000 1,104 1,145 Capital City Link General Partnership 4.39% March 31, ,500 1,532 1,548 CIBC Capital Trust 10.25% June 30, 2108 (1) 1,600 2,028 2,310 Consumers Gas Corp., Ltd., Note, (MTN) 6.10% May 19, CU, Inc. 4.54% October 24, ,700 1,851 1, % September 10, ,200 1,200 1, % November 18, % October 24, % September 11, CU, Inc., (MTN) 6.22% March 06, % May 26, % May 26, ,400 3,515 4, % March 07, ,500 2,145 2,152 CU, Inc., Note, (MTN) 5.56% October 30, Enbridge Gas Distribution, Inc., (MTN) 4.95% November 22, ,025 1,096 Enbridge Gas Distribution, Inc., Note, (MTN) 6.16% December 16, % February 25, ,600 1,565 1,935 Enbridge Pipelines, Inc. 5.35% November 10, ,700 1,709 2,134 Enbridge Pipelines, Inc., Note, (MTN) 6.05% February 12, Par (000s)/ Corporate (continued) Enbridge, Inc., (MTN) 7.20% June 18, ,000 2,761 2, % November 14, ,000 1,864 2, % September 02, , , % August 27, ,200 1,199 1,215 Enersource Corp. 5.30% April 29, EPCOR Utilities, Inc., (MTN) 5.75% November 24, ,000 1,095 1, % February 28, ,900 2,011 2,016 Finning International, Inc., (MTN) 5.08% June 13, FortisAlberta, Inc. 7.06% February 14, ,000 1,529 1, % October 23, FortisAlberta, Inc., (MTN) 5.37% October 30, % October 18, ,000 1,116 1,121 FortisAlberta, Inc., Senior Note 6.22% October 31, ,000 1,121 1,348 FortisBC, Inc., (MTN) 6.10% June 02, ,500 1,562 2, % November 24, Gaz Metro, LP, Secured Note, Series E, (MTN) 9.00% May 16, Gaz Metro, LP, Secured Note, Series I (MTN) 7.05% October 30, ,000 1,410 1,405 GE Capital Canada Funding Co., (MTN) 5.73% October 22, ,200 5,103 6,416 George Weston, Ltd., (MTN) 7.10% February 05, ,612 1,812 1,913 Great-West Lifeco, Inc., Note 6.67% March 21, ,019 3,417 3,857 Greater Toronto Airports Authority, (MTN) 7.05% June 12, ,000 1,359 1, % June 04, ,570 2,132 2, % February 02, ,500 5,150 6, % June 07, ,000 1,306 1, % February 25, ,600 3,947 4,237 Greater Toronto Airports Authority, Note 6.45% December 03, ,000 1,335 1,313 Greater Toronto Airports Authority, Note, (MTN) 6.45% July 30, ,444 2,705 3,052 Halifax International Airport Authority 4.89% November 15, Health Montreal Collective, LP 6.72% September 30, ,850 6,398 7,103 The accompanying notes are an integral part of the financial statements. 183

184 BlackRock Canada CorePlus Long Bond Fund Par (000s)/ Corporate (continued) Hospital Infrastructure Partners NOH Partnership 5.44% January 31, ,300 1,405 1,529 Hydro One, Inc., (MTN) 5.36% May 20, ,500 3,488 4, % March 13, ,000 1,159 1, % March 03, % July 16, ,700 2,760 3, % September 26, % October 19, ,200 1,435 1, % December 22, % July 31, , Hydro One, Inc., Note 7.35% June 03, ,750 2,497 2,536 Hydro One, Inc., Note, (MTN) 6.93% June 01, ,000 2,039 2,849 IGM Financial, Inc. 6.00% December 10, IGM Financial, Inc., Note 7.00% December 31, ,700 2,017 2, % March 07, ,000 1,233 1,265 Intact Financial Corp., (MTN) 5.16% June 16, Integrated Team Solutions SJHC Partnership 5.95% November 30, Loblaw Cos., Ltd., (MTN) 6.45% February 09, ,500 1,535 1, % February 17, ,900 1,968 2, % January 18, ,500 1,498 1,632 Lower Mattagami Energy, LP 5.14% May 18, Manulife Finance Delaware 5.06% December 15, 2041 (1) 1,400 1,184 1,289 Metro, Inc., (MTN) 5.97% October 15, ,100 1,938 2,385 NAV Canada, Note 7.56% March 01, ,125 1,344 1, % June 01, ,350 1,902 1,956 Nova Scotia Power, Inc., (MTN) 5.67% November 14, ,002 1, % June 15, % March 06, Nova Scotia Power, Inc., Series S, Note, (MTN) 6.95% August 25, ,000 1,165 1,412 Nova Scotia PowerCorp., Note, (MTNF) 8.85% May 19, ,045 Ontario Electricity Financial Corp., Note 8.50% May 26, ,000 1,552 1,550 Ontario Infrastructure Projects Corp., Note 4.70% June 01, Par (000s)/ Corporate (continued) Ontario School Boards Financing Corp. 5.80% November 07, Ontario School Boards Financing Corp., Note 5.48% November 26, Plenary Health Bridgepoint, LP 7.25% August 31, Plenary Health Care Partnerships Humber, LP 4.82% November 30, ,000 1,000 1,085 Plenary Health Hamilton, LP 5.80% May 31, Plenary Properties LTAP, LP 6.29% January 31, ,565 3,079 3,354 Power Financial Corp., Note 6.90% March 11, ,000 1,203 1,293 Powerstream, Inc. 3.96% July 30, Rogers Communications, Inc. 6.68% November 04, ,000 2,370 2, % August 25, ,500 1,499 1,761 Rogers Communications, Inc., (MTN) 6.56% March 22, ,500 1,675 1,866 Royal Bank of Canada 4.93% July 16, ,600 2,838 3,049 Scotiabank Capital Trust, Series % December 31, 2056 (1) 2,500 2,527 3,031 Shaw Communications, Inc. 6.75% November 09, ,800 3,832 4,220 SNC-Lavalin Innisfree McGill Finance, Inc. 6.63% June 30, ,600 3,307 3,297 Sobeys, Inc., (MTN) 6.64% June 07, ,000 1,030 1,176 Sun Life Capital Trust, Series B, Secured Note 7.09% June 30, ,300 1,569 1,507 Sun Life Financial, Inc., (MTN) 5.40% May 29, 2042 (1) 1,200 1,038 1,193 Suncor Energy, Inc., (MTN) 5.39% March 26, ,200 2,188 2,555 TD Capital Trust IV 10.00% June 30, 2108 (1) 1,500 1,654 2,186 Teranet, LP 5.75% December 17, ,331 1,411 1, % June 17, Terasen Gas Vancouver Island, Inc., Senior Unsecured Note 6.05% February 15, ,500 1,537 1,988 Terasen Gas, Inc., (MTN) 6.55% February 24, The accompanying notes are an integral part of the financial statements. 184

185 BlackRock Canada CorePlus Long Bond Fund Par (000s)/ Corporate (continued) Terasen Gas, Inc., Note, (MTN) 6.50% May 01, ,000 2,328 2, % September 25, , ,270 Toronto Hydro Corp., (MTN) 5.54% May 21, ,000 1,297 1,278 TransAlta Corp., (MTN) 7.30% October 22, TransAlta Corp., Note, (MTN) 6.90% November 15, 2030 (1) 1,000 1,071 1,028 TransCanada PipeLines, Ltd. 8.05% February 17, ,300 4,575 5,372 TransCanada PipeLines, Ltd., (MTN) 4.55% November 15, TransCanada PipeLines, Ltd., Note, (MTN) 8.29% February 05, ,376 2,036 2, % January 15, ,226 1,472 1, % May 26, ,700 1,838 2, % August 07, ,071 Union Gas, Ltd. 8.65% November 10, % June 21, Union Gas, Ltd., (MTN) 6.05% September 02, % July 23, ,200 1,236 1,461 University of Toronto 4.25% December 07, Vancouver International Airport Authority 7.43% December 07, 2026 (1) Westcoast Energy, Inc., (MTN) 4.79% October 28, Westcoast Energy, Inc., Note 8.85% July 21, ,000 1,378 1,503 Total Corporate 216, ,573 Total Fixed Income Investments 971,818 1,062,349 Foreign Investments 48.6% U.S. LIBOR GlobalAlpha Bond Fund Ltd.* 407, , ,168 Total Foreign Investments 465, ,168 Portfolio Concentration (as a percentage of Net Assets) As at December 31, 2012 As at December 31, 2011 Portfolio by Category (%) (%) Federal Non-Agency Federal Agency Municipal Provincial Corporate Foreign Investments Repurchase Agreements (47.9) (50.9) Other Assets and Liabilities Open forward currency contracts and repurchase agreements held by the Fund as at December 31, 2012 are shown in Notes 5 and 7 respectively. * The U.S. LIBOR GlobalAlpha Bond Fund Ltd. is a Cayman Islands exempted company that achieves its investment objective by investing in the BlackRock Fixed Income GlobalAlpha Master Fund Ltd. ( FIGA ) and Strategic Short Duration Bond Fund Ltd. ( SSD ), each an exempted company incorporated under the laws of the Cayman Islands. FIGA seeks to invest in a diversified portfolio of long and short fixed income securities across global markets and SSD seeks to invest in a diversified portfolio of debt securities and other credit-related instruments in various global markets. The following portfolio concentration is as a percentage of Net Assets of the U.S. LIBOR GlobalAlpha Bond Fund Ltd. As at December 31, 2012 As at December 31, 2011 Portfolio by Category (%) (%) FIGA SSD Other Assets and Liabilities Total Investments 1,437,571 1,586,517 Other Assets and Liabilities (47.0)% (506,978) Net Assets 1,079,539 (1) Variable rate security. Rate shown is as at report date. The accompanying notes are an integral part of the financial statements. 185

186 BlackRock Canada CorePlus Universe Bond Fund (Note 1) Statement of Net Assets As at December Assets Investments - at fair (Note 2) $ 153,553,710 $ 142,663,200 Cash 1,233, ,312 Margin due from brokers 164,519 - Net unrealized gain on forward currency contracts (Note 5) 45, ,908 Interest receivable 624, ,590 Accounts receivable from issue of units - 76,713, ,622, ,630,459 Liabilities Operating expenses payable 19,950 12,510 Financing charges payable 140,033 14,975 Payables for investment purchases - 114,342,024 Payable for repurchase agreements (Note 7) 52,317,081 10,820,178 Net unrealized loss on forward currency contracts (Note 5) 166, ,348 52,643, ,306,035 Net Assets $ 102,978,144 $ 95,324,424 Number of Units Issued and Outstanding (Note 8) 9,292,171 9,127,817 Net Assets per Unit $ $ Investments at Cost $ 150,958,294 $ 141,813,336 Approved by BlackRock Asset Management Canada Limited, Manager of the Funds Eric Léveillé, Director Noel Archard, Director The accompanying notes are an integral part of the financial statements. 186

187 BlackRock Canada CorePlus Universe Bond Fund (Note 1) Statement of Operations For the Periods Ended December Revenue Interest income $ 3,801,690 $ 123,476 Net gain from futures contracts 94,492 - Foreign exchange gain 348,917-4,245, ,476 Expenses Custodian fees 6, Fund accounting expenses 60,774 8,543 Unitholder communication s 15 3 Audit fees 16,003 9,040 Securities filing fees 1, Financing charges 552,306 20,716 Independent review committee fees Other operating expenses 1, ,856 39,115 Net Investment Income for the Period 3,606,243 84,361 Gain on Investments Net realized loss on sale of investments (299,586) (16,088) Net realized gain (loss) from forward currency contracts 1,164,107 (412,766) Transaction s (Note 2,13) (8,789) - Net change in unrealized appreciation in of investments 1,745, ,864 Net change in unrealized appreciation (depreciation) in of forward currency contracts (302,928) 181,560 Net Gain on Investments 2,298, ,570 Increase in Net Assets from Operations $ 5,904,599 $ 686,931 Increase in Net Assets from Operations per Unit $ 0.64 $ 0.39 Statement of Changes in Net Assets For the Periods Ended December Net Assets - Beginning of Period $ 95,324,424 $ - Increase in Net Assets from Operations 5,904, ,931 Capital Transactions Proceeds from issue of units 2,149,403 94,637,493 Reinvestment of distributions 4,575,305 - Redemption of units (400,282) - Net capital transactions 6,324,426 94,637,493 Distributions From net investment income (4,575,305) - Total distributions (4,575,305) - Increase in Net Assets for the Period 7,653,720 95,324,424 Net Assets - End of Period $ 102,978,144 $ 95,324,424 The accompanying notes are an integral part of the financial statements. 187

188 BlackRock Canada CorePlus Universe Bond Fund (Note 1) Statement of Cash Flow For the Periods Ended December Cash Used in Operating Activities Net investment income for the periods $ 3,606,243 $ 84,361 Changes in Working Capital Balances Relating to Operations Purchase of investment securities* (49,641,350) (51,215,669) Proceeds from disposition of investment securities 40,196,806 2,779,392 Transaction s (8,789) - Increase in margin due from brokers (164,519) - Decrease (Increase) in interest receivable 35,764 (660,590) Decrease (Increase) in accounts receivable for issue of units* 890,805 (890,805) Increase in operating expenses payable 7,440 12,510 Increase in financing charges payable 125,058 14,975 Increase (Decrease) in payable for investment purchases* (38,519,379) 38,519,379 Net realized gain(loss) from forward currency contract 1,164,107 (412,766) (45,914,058) (11,853,574) Net Cash Used in Operating Activities (42,307,815) (11,769,213) Financing Activities Proceeds from issuance of units* 2,149,403 1,244,347 Proceeds from repurchase agreements 41,496,903 10,820,178 Payment on redemption in units (400,282) - Net Cash Provided by Financing Activities 43,246,024 12,064,525 Net Increase in Cash and Cash Equivalent $ 938,209 $ 295,312 Cash - Beginning of Period $ 295,312 $ - Cash - End of Period $ 1,233,521 $ 295,312 * Excluding in-kind activity as follows: - Purchase of investment securities (2011, $93,393,145) - Increase in accounts receivable for issue of units (2011, $75,822,645) - Increase in payable for investment purchases (2011, $75,822,645) - Proceeds from issuance of units (2011, $93,393,145) The accompanying notes are an integral part of the financial statements. 188

189 BlackRock Canada CorePlus Universe Bond Fund Par (000s)/ Fixed Income Investments Government Federal Non-Agency 28.6% Government of Canada 1.00% February 01, % March 01, % May 01, % June 01, % June 01, ,063 1,113 1, % August 01, ,082 1,114 1, % November 01, % December 01, ,215 1,245 1, % February 01, % June 01, % June 01, % August 01, % December 01, % February 01, % June 01, % June 01, % September 01, % March 01, % June 01, % September 01, % March 01, % June 01, % June 01, ,381 1,576 1, % June 01, ,037 1,164 1, % June 01, % June 01, % June 01, % June 01, % June 01, % June 01, % June 01, % June 01, ,117 1, % June 01, ,423 1, % June 01, ,445 1, % June 01, ,173 1,541 1, % December 01, ,570 29,485 Federal Agency 11.9% Asian Development Bank, Series MPLE, Senior Unsecured Note 4.65% February 16, Canada Housing Trust 2.20% March 15, % June 15, % September 15, % December 15, % March 15, % June 15, % December 15, % March 15, % December 15, Canada Housing Trust No % December 15, Par (000s)/ Federal Agency (continued) 2.45% December 15, % June 15, ,139 1,195 1, % December 15, % June 15, % December 15, % June 15, % March 15, % December 15, Canada Post Corp. 4.08% July 16, Inter-American Development Bank, Note 4.75% November 17, % January 26, Royal Office Finance LP, Series A, Note 5.21% November 12, ,251 12,231 Government Guaranteed 0.1% Milit-Air, Inc., Secured Note 5.75% June 30, Municipal 2.0% Alberta Capital Finance Authority, Note 3.05% June 15, % June 15, City of Montreal 4.95% December 10, % June 01, City of Toronto 4.85% July 28, % June 01, % June 10, City of Winnipeg 9.13% May 12, Municipal Finance Authority of British Columbia 4.65% April 19, % June 01, % June 03, % June 01, % June 01, % December 01, Peel Regional Municipality 5.10% June 29, % October 30, PSP Capital, Inc. 2.94% December 03, Regional Municipality of York 7.25% June 19, % June 30, ,083 2,068 The accompanying notes are an integral part of the financial statements. 189

190 BlackRock Canada CorePlus Universe Bond Fund Par (000s)/ Provincial 27.1% City of Toronto 3.80% December 13, Financement-Quebec 4.25% March 01, % June 01, % December 01, % December 01, % December 01, % December 01, % December 01, % June 01, Hydro Quebec 9.63% July 15, % February 15, Hydro Quebec, (MTN) 6.00% February 15, Hydro Quebec, Series 19, Note 6.50% February 15, Hydro Quebec, Series HL, Note 11.00% August 15, Hydro Quebec, Series JM, Note 5.00% February 15, Ontario Electricity Financial Corp., Note 8.25% June 22, Province of Alberta 2.75% December 01, % September 01, % June 15, % December 01, % December 15, % December 01, Province of British Columbia 7.50% June 09, % June 18, % December 01, % December 18, % December 18, % May 15, % December 18, % December 18, % September 08, % June 18, % June 18, % June 18, % June 18, Province of British Columbia, Unsecured Note 3.20% June 18, Province of British Columbia, (MTN) 4.65% December 18, % June 18, Province of Manitoba 4.80% December 03, % March 01, Par (000s)/ Provincial (continued) 1.85% June 01, % June 03, % December 22, % March 05, % March 05, % March 05, % March 05, % March 05, Province of Manitoba, (MTN) 6.50% September 22, % September 05, % March 05, Province of New Brunswick 4.30% December 03, % December 27, % March 26, % June 03, % June 02, % December 03, % September 26, % March 26, % September 26, % June 03, Province of Newfoundland 5.25% June 04, % October 17, % October 17, Province of Nova Scotia 1.90% September 08, % November 25, % June 01, % June 01, % June 01, % June 01, % June 02, Province of Nova Scotia, Series 9Z 6.60% June 01, Province of Ontario 5.00% March 08, % September 08, % March 08, % September 08, % March 08, % September 08, % March 08, % March 08, % June 02, % June 02, % June 02, % June 02, % June 02, % September 08, % December 02, % June 02, % March 08, % June 02, % March 08, The accompanying notes are an integral part of the financial statements. 190

191 BlackRock Canada CorePlus Universe Bond Fund Par (000s)/ Provincial (continued) 4.70% June 02, % June 02, % June 02, Province of Ontario, (MTN) 5.50% June 02, % June 02, Province of Ontario, Series HC 9.50% July 13, Province of Prince Edward Island 6.10% July 29, Province of Quebec 5.50% December 01, % December 01, % December 01, % December 01, % December 01, % December 01, % December 01, % December 01, % January 16, % April 01, % October 01, % June 01, % December 01, % December 01, % December 01, % December 01, Province of Quebec, Senior Unsecured Note 3.00% September 01, Province of Quebec, (MTN) 4.50% December 01, Province of Saskatchewan 3.90% July 28, % September 05, % September 05, % March 05, % June 01, % February 03, ,838 27,914 Total Government 71,819 71,774 Corporate 29.6% 407 International, Inc., (MTN) 3.88% June 16, % May 26, % November 15, International, Inc., Series 06D1, Note 5.75% February 14, Aeroports de Montreal 5.17% September 17, % October 16, Alliance Pipeline, LP, Senior Note 5.55% December 31, % December 31, Par (000s)/ Corporate (continued) AltaLink, LP, (MTN) 5.24% May 29, American Express Canada (MTN) 4.85% October 03, American Express Canada, Guaranteed Note, (MTN) 3.60% June 03, Bank of Montreal 3.93% April 27, % October 05, % March 10, % June 10, % August 02, % July 12, % December 11, % September 10, Bank of Montreal, (MTN) 3.98% July 08, 2021 (1) Bank of Montreal, DPNT 5.18% June 10, % May 02, Bank of Nova Scotia 3.43% July 16, % November 18, % March 25, % May 08, % February 22, % February 27, % June 08, % April 15, 2019 (1) % January 22, 2021 (1) % October 18, 2024 (1) Bank of Nova Scotia, (MTN) 2.90% August 03, 2022 (1) BC Tel, Note 9.65% April 08, BCIMC Realty Corp. 2.65% June 29, % March 07, % June 29, Bell Aliant Regional Communications, LP, (MTN) 6.29% February 17, % April 26, Bell Canada 3.60% December 02, % March 16, % June 18, Bell Canada, (MTN) 4.85% June 30, Bell Canada, Note, (MTN) 7.85% April 02, % February 23, BMO Capital Trust II, Series A, Note 10.22% December 31, 2107 (1) The accompanying notes are an integral part of the financial statements. 191

192 BlackRock Canada CorePlus Universe Bond Fund Par (000s)/ Corporate (continued) BMW Canada, Inc. 2.76% April 01, Borealis Infrastructure Trust, Series N, Secured Note 6.35% December 01, British Columbia Ferry Services, Inc., Series B, Senior Secured Note 6.25% October 13, Broadcast Centre Trust, Secured Note 7.53% May 01, Broadway Credit Card Trust, Series A, Note 4.80% March 17, Brookfield Asset Management, Inc., (MTN) 3.95% April 09, % March 01, Brookfield Asset Management, Inc., Note 5.95% June 14, Brookfield Renewable Power, Inc., (MTN) 5.14% October 13, BRP Finance ULC, (MTN) 4.79% February 07, Cameco Corp. 4.70% September 16, % September 02, Cadillac view Finance Trust 3.24% January 25, % May 09, % January 25, Canadian Credit Card TST 3.44% July 24, Canadian Imperial Bank of Commerce 3.30% November 19, % May 22, % January 14, % November 08, % July 14, % October 18, % April 30, 2020 (1) % November 02, 2020 (1) Canadian Imperial Bank of Commerce, DPNT, Note 4.95% January 23, Canadian Natural Resources, Ltd., (MTN) 3.05% June 19, Canadian Pacific RR Co., (MTN) 6.45% November 17, Par (000s)/ Corporate (continued) Canadian Pacific RR Co., Senior Unsecured Note, (MTN) 6.25% June 01, Canadian Tire Corp., Ltd. (MTN) 6.32% February 24, Canadian Western Bank 2.38% September 14, % January 18, Capital Desjardins, Inc. 5.76% April 01, 2019 (1) % May 05, % November 23, 2020 (1) % June 01, 2021 (1) Capital Power, LP, (MTN) 5.28% November 16, Cards II Trust 3.10% September 15, % May 15, Caterpillar Financial Services, Ltd. 2.20% June 01, % June 01, CI Investments, Inc. 3.94% December 14, 2016 (1) CIBC Capital Trust 9.98% June 30, 2108 (1) Co-Operators Financial Services 5.78% March 10, CU, Inc. 4.54% October 24, % September 10, % September 11, CU, Inc., (MTN) 6.80% August 13, % May 26, CU, Inc., Note 6.15% November 22, Daimler Canada Finance, Inc. 3.16% April 14, Emera, Inc., (MTN) 4.83% December 02, Enbridge Gas Distribution, Inc., (MTN) 4.04% November 23, Enbridge Pipelines, Inc., (MTN) 6.55% November 17, Enbridge, Inc. 4.53% March 09, % December 05, Enbridge, Inc., (MTN) 5.17% May 19, % September 02, % June 18, % August 27, The accompanying notes are an integral part of the financial statements. 192

193 BlackRock Canada CorePlus Universe Bond Fund Par (000s)/ Corporate (continued) Encana Corp., (MTN) 5.80% January 18, EPCOR Utilities, Inc., (MTN) 5.80% January 31, % February 28, Fifth Avenue, LP 4.71% August 05, First Capital Realty, Inc., Series E, Note, (MTN) 5.36% January 31, Ford Credit Canada, Ltd. 4.88% March 17, % August 18, % February 08, FortisAlberta, Inc., (MTN) 5.37% October 30, FortisAlberta, Inc., Senior Note 6.22% October 31, Gaz Metro, Inc., Guaranteed Note 5.45% July 12, Gaz Metro, LP, Series D, Note 10.45% October 31, GE Capital Canada Funding Co., (MTN) 4.40% June 01, % June 08, % August 17, % June 11, % January 26, % October 22, Glacier Credit Card Trust 2.39% April 20, Golden Credit Card Trust 3.51% May 15, Great-West Lifeco Finance Delaware, LP II 7.13% June 26, 2068 (1) Great-West Lifeco Finance Delaware, LP, Subordinated Note 5.69% June 21, 2067 (1) Great-West Lifeco, Inc. 4.65% August 13, Great-West Lifeco, Inc., Note 6.67% March 21, Greater Toronto Airports Authority, (MTN) 5.00% June 01, % February 15, % June 01, % June 12, % June 04, % June 07, % February 25, Par (000s)/ Corporate (continued) Greater Toronto Airports Authority, Note 6.45% December 03, Health Montreal Collective, LP 6.72% September 30, Holcim Finance Canada, Inc., (MTN) 3.65% April 10, Honda Canada Finance, Inc. 2.28% December 11, HSBC Bank of Canada 3.86% May 21, % November 23, % January 13, % October 04, % April 10, 2022 (1) Husky Energy, Inc. 5.00% March 12, Hydro One, Inc. 4.40% June 01, Hydro One, Inc., (MTN) 2.95% September 11, % October 18, % January 13, % May 20, % March 03, % October 19, Industrial Alliance Capital Trust, Note 5.13% June 30, 2019 (1) Intact Financial Corp., (MTN) 5.41% September 03, Inter Pipeline Fund, (MTN) 3.78% May 30, Loblaw Cos., Ltd., (MTN) 4.85% May 08, % June 18, % February 17, Lower Mattagami Energy, LP 2.23% October 23, Manufacturers Life Insurance Co. 4.17% June 01, 2022 (1) Manulife Finance Cap Trust 7.41% December 31, 2108 (1) Manulife Finance Delaware 5.06% December 15, 2041 (1) Manulife Financial Corp. 7.77% April 08, Manulife Financial Corp., (MTN) 4.90% June 02, % August 20, % June 26, Master Credit Card Trust 3.50% May 21, % January 21, The accompanying notes are an integral part of the financial statements. 193

194 BlackRock Canada CorePlus Universe Bond Fund Par (000s)/ Corporate (continued) Merrill Lynch Canada Finance Co., (MTN) 5.00% February 18, Metro, Inc., (MTN) 5.97% October 15, Molson Coors Capital Finance, ULC 5.00% September 22, National Bank of Canada 2.23% January 30, % May 26, % April 26, % August 21, National Bank of Canada, (MTN) 4.93% December 22, 2019 (1) % April 11, 2022 (1) NAV Canada, Note 7.56% March 01, NBC Asset Trust 7.45% June 30, 2020 (1) NOVA Gas Transmission, Ltd., Series 21, Note 12.20% February 28, Nova Scotia Power, Inc., (MTN) 4.15% March 06, Ontario Electricity Financial Corp., Note 10.00% February 06, Ontario Electricity Financial Corp., Series DJ5, Note 10.00% October 17, Ontario Electricity Financial Corp., Series FV6, Note 8.90% August 18, Ontario School Boards Financing Corp. 5.38% June 25, Ontario School Boards Financing Corp., Note 5.48% November 26, % April 18, Ontario School Boards Financing Corp., Series 01A2 6.25% October 19, Pembina Pipeline Corp. (MTN) 4.89% March 29, Plenary Health Care Partnerships Humber, LP 4.82% November 30, Plenary Properties LTAP, LP 6.29% January 31, Power Corp. Canada 7.57% April 22, Power Financial Corp., Note 6.90% March 11, Par (000s)/ Corporate (continued) Reliance, LP 4.57% March 15, % March 15, RioCan Real Estate Investment Trust 3.72% December 13, Rogers Communications, Inc. 5.80% May 26, % June 06, % September 29, % March 22, % June 06, % August 25, Rogers Communications, Inc., (MTN) 6.56% March 22, RONA, Inc., Note 5.40% October 20, Royal Bank of Canada 2.05% January 13, % January 11, % July 26, % December 08, % January 25, % September 21, % June 15, 2020 (1) % November 02, 2020 (1) % December 06, 2024 (1) % July 16, Royal Bank of Canada, (MTN) 3.18% March 16, Royal Bank of Canada, Senior Note 4.97% June 05, Royal Bank of Canada, Series 2014, Subordinated Note 5.95% June 18, Score Trust, Series , Note 4.95% February 20, Scotiabank Capital Trust, Series % December 31, 2056 (1) Scotiabank Tier I Capital Trust 7.80% June 30, 2108 (1) Shaw Communications, Inc. 6.50% June 02, % October 01, % November 09, Shaw Communications, Inc., Series N, Senior Note 6.15% May 09, SNC-Lavalin Group, Inc. 6.19% July 03, SP LP/SP1, LP 3.21% June 15, The accompanying notes are an integral part of the financial statements. 194

195 BlackRock Canada CorePlus Universe Bond Fund Par (000s)/ Corporate (continued) Sun Life Financial, Inc. 4.57% August 23, % June 01, 2036 (1) Sun Life Financial, Inc., (MTN) 5.40% May 29, 2042 (1) Sun Life Financial, Inc., Senior Note, (MTN) 4.80% November 23, 2035 (1) Suncor Energy, Inc., (MTN) 5.39% March 26, TD Capital Trust IV 9.52% June 30, 2108 (1) % June 30, 2108 (1) TELUS Corp. 4.95% May 15, % March 15, % December 04, % July 23, TELUS Corp., Senior Unsecured Note 5.95% April 15, Teranet, LP 3.53% December 16, % December 16, % December 17, Terasen Gas, Inc., Senior Note, (MTN) 5.80% May 13, Thomson Reuters Corp. 5.20% December 01, % July 15, % March 31, Toronto Hydro Corp., Note 5.15% November 14, Toronto-Dominion Bank 2.95% August 02, Toronto-Dominion Bank, (MTN) 5.48% April 02, 2020 (1) % November 02, 2020 (1) % July 09, 2023 (1) % October 30, 2104 (1) % December 14, 2105 (1) Toronto-Dominion Bank, Note 10.05% August 04, Toyota Credit Canada, Inc. 2.45% February 27, TransAlta Corp., (MTN) 7.30% October 22, TransCanada PipeLines, Ltd., (MTN) 4.65% October 03, % November 15, % November 15, TransCanada PipeLines, Ltd., Note, (MTN) 7.90% April 15, Par (000s)/ Corporate (continued) Union Gas, Ltd., (MTN) 5.20% July 23, Union Gas, Ltd., Series 1992, Note 9.70% November 06, Union Gas, Ltd., Series 1993, Note 8.75% August 03, VW Credit Canada, Inc. 2.50% June 01, % June 01, Wells Fargo Canada Corp., (MTN) 2.94% July 25, Wells Fargo Financial Canada Corp. 3.97% November 03, Wells Fargo Financial Canada Corp., (MTN) 4.38% June 30, % March 30, % February 09, Westcoast Energy, Inc. 3.28% January 15, % December 05, Westcoast Energy, Inc., (MTN) 7.15% March 20, Winnipeg Airport Authority, Inc. 4.57% November 20, Total Corporate 29,941 30,449 Total Fixed Income Investments 101, ,223 Foreign Investments 49.8% U.S. LIBOR GlobalAlpha Bond Fund Ltd.* 39,949 49,198 51,331 Total Foreign Investments 49,198 51,331 Total Investments 150, ,554 Other Assets and Liabilities (49.1)% (50,576) Net Assets 102,978 (1) Variable rate security. Rate shown is as at report date. The accompanying notes are an integral part of the financial statements. 195

196 BlackRock Canada CorePlus Universe Bond Fund Portfolio Concentration (as a percentage of Net Assets) As at December 31, 2012 As at December 31, 2011 Portfolio by Category (%) (%) Federal Non-Agency Federal Agency Government Guaranteed Municipal Provincial Corporate Foreign Investments Repurchase Agreements (50.8) (11.4) Other Assets and Liabilities 1.7 (38.3) Open futures contracts, forward currency contracts, and repurchase agreements held by the Fund as at December 31, 2012 are shown in Notes 4, 5, and 7 respectively. * The U.S. LIBOR GlobalAlpha Bond Fund Ltd. is a Cayman Islands exempted company that achieves its investment objective by investing in the BlackRock Fixed Income GlobalAlpha Master Fund Ltd. ( FIGA ) and Strategic Short Duration Bond Fund Ltd. ( SSD ), each an exempted company incorporated under the laws of the Cayman Islands. FIGA seeks to invest in a diversified portfolio of long and short fixed income securities across global markets and SSD seeks to invest in a diversified portfolio of debt securities and other credit-related instruments in various global markets. The following portfolio concentration is as a percentage of Net Assets of the U.S. LIBOR GlobalAlpha Bond Fund Ltd. As at December 31, 2012 As at December 31, 2011 Portfolio by Category (%) (%) FIGA SSD Other Assets and Liabilities The accompanying notes are an integral part of the financial statements. 196

197 BlackRock Canada Levered Long Bond Index Fund (Note 1) Statement of Net Assets As at December Assets Investments - at fair (Note 2) $ 44,940,474 $ 32,093,859 Cash 300,428 90,891 Cash collateral 11,250,142 7,683,429 Unrealized gain on swaps (Note 6) 553,246 2,257,978 57,044,290 42,126,157 Liabilities Operating expenses payable 15,124 11,596 15,124 11,596 Net Assets $ 57,029,166 $ 42,114,561 Number of Units Issued and Outstanding (Note 8) 4,837,744 3,848,139 Net Assets per Unit $ $ Investments at Cost $ 45,431,617 $ 31,701,071 Approved by BlackRock Asset Management Canada Limited, Manager of the Funds Eric Léveillé, Director Noel Archard, Director The accompanying notes are an integral part of the financial statements. 197

198 BlackRock Canada Levered Long Bond Index Fund (Note 1) Statement of Operations For the Periods Ended December Revenue Interest income $ 1,531,051 $ 653,140 1,531, ,140 Expenses Fund accounting expenses 13,612 3,386 Unitholder communication s Audit fees 13,718 10,170 Securities filing fees Independent review committee fees Other operating expenses 1, ,948 13,945 Net Investment Income for the Period 1,501, ,195 Gain on Investments Net realized gain on sale of investments 48,724 26,717 Net realized gain (loss) on swaps 3,294,256 (143,498) Capital gains distributions received from other funds 888, ,730 Net change in unrealized appreciation (depreciation) in of swap contracts (1,704,732) 2,257,978 Net change in unrealized appreciation (depreciation) in of investments (883,931) 392,788 Net Gain on Investments 1,642,381 2,955,715 Increase in Net Assets from Operations $ 3,143,484 $ 3,594,910 Increase in Net Assets from Operations per Unit $ 0.78 $ 1.33 Statement of Changes in Net Assets For the Periods Ended December Net Assets - Beginning of Period $ 42,114,561 $ - Increase in Net Assets from Operations 3,143,484 3,594,910 Capital Transactions Proceeds from issue of units 14,572,099 38,519,651 Reinvestment of distributions 5,747, ,663 Redemption of units (2,800,978) - Net capital transactions 17,518,778 39,416,314 Distributions From net investment income (4,782,689) (474,933) From capital gains (964,968) (421,730) Total distributions (5,747,657) (896,663) Increase in Net Assets for the Period 14,914,605 42,114,561 Net Assets - End of Period $ 57,029,166 $ 42,114,561 The accompanying notes are an integral part of the financial statements. 198

199 BlackRock Canada Levered Long Bond Index Fund Canadian Fixed Income Index Equivalents 78.8% BlackRock Canada Long Bond Index Class A 1,547,016 45,432 44,940 Total Canadian Fixed Income Index Equivalents 45,432 44,940 Total Investments 45,432 44,940 Other Assets and Liabilities 21.2% 12,089 Net Assets 57,029 Portfolio Concentration (as a percentage of Net Assets) As at December 31, 2012 As at December 31, 2011 Portfolio by Category (%) (%) Canadian Fixed Income Index Equivalents Swap referenced to Canadian Fixed Income Index Equivalents Other Assets and Liabilities Open swap contracts held by the Fund as at December 31, 2012 are shown in Note 6. The accompanying notes are an integral part of the financial statements. 199

200 BlackRock Canada Levered Real Return Bond Index Fund (Note 1) Statement of Net Assets As at December Assets Investments - at fair (Note 2) $ 32,576,201 $ 33,624,417 Cash 195, ,491 Cash collateral 8,183,966 6,562,948 Unrealized gain on swaps (Note 6) 231,778 3,517,931 41,187,856 44,213,787 Liabilities Operating expenses payable 15,012 11,591 15,012 11,591 Net Assets $ 41,172,844 $ 44,202,196 Number of Units Issued and Outstanding (Note 8) 3,452,114 3,847,558 Net Assets per Unit $ $ Investments at Cost $ 31,801,395 $ 32,325,898 Approved by BlackRock Asset Management Canada Limited, Manager of the Funds Eric Léveillé, Director Noel Archard, Director The accompanying notes are an integral part of the financial statements. 200

201 BlackRock Canada Levered Real Return Bond Index Fund (Note 1) Statement of Operations For the Periods Ended December Revenue Interest income $ 912,805 $ 558, , ,008 Expenses Fund accounting expenses 13,612 3,387 Unitholder communication s Audit fees 13,718 10,170 Securities filing fees Independent review committee fees Other operating expenses 1, ,850 13,941 Net Investment Income for the Period 882, ,067 Gain on Investments Net realized gain on sale of investments 144,233 - Net realized gain (loss) on swaps 4,023,004 (143,489) Capital gains distributions received from other funds 445, ,404 Net change in unrealized appreciation (depreciation) in of swap contracts (3,286,153) 3,517,931 Net change in unrealized appreciation (depreciation) in of investments (523,713) 1,298,519 Net Gain on Investments 802,780 5,141,365 Increase in Net Assets from Operations $ 1,685,735 $ 5,685,432 Increase in Net Assets from Operations per Unit $ 0.46 $ 2.10 Statement of Changes in Net Assets For the Periods Ended December Net Assets - Beginning of Period $ 44,202,196 $ - Increase in Net Assets from Operations 1,685,735 5,685,432 Capital Transactions Proceeds from issue of units - 38,516,764 Reinvestment of distributions 5,492, ,222 Redemption of units (4,715,087) - Net capital transactions 776,929 39,364,986 Distributions From net investment income (4,902,373) (379,819) From capital gains (589,643) (468,403) Total distributions (5,492,016) (848,222) Increase (Decrease) in Net Assets for the Period (3,029,352) 44,202,196 Net Assets - End of Period $ 41,172,844 $ 44,202,196 The accompanying notes are an integral part of the financial statements. 201

202 BlackRock Canada Levered Real Return Bond Index Fund Canadian Fixed Income Index Equivalents 79.1% BlackRock Canada Real Return Bond Index Class A 964,905 31,801 32,576 Total Canadian Fixed Income Index Equivalents 31,801 32,576 Total Investments 31,801 32,576 Other Assets and Liabilities 20.9% 8,597 Net Assets 41,173 Portfolio Concentration (as a percentage of Net Assets) As at December 31, 2012 As at December 31, 2011 Portfolio by Category (%) (%) Canadian Fixed Income Index Equivalents Swap referenced to Canadian Fixed Income Index Equivalents Other Assets and Liabilities Open swap contracts held by the Fund as at December 31, 2012 are shown in Note 6. The accompanying notes are an integral part of the financial statements. 202

203 BlackRock Balanced Moderate Index DC Fund Statement of Net Assets As at December Assets Investments - at fair (Note 2) $ 1,085,395,662 $ 916,746,654 Cash 1,965,334 2,172,282 Securities lending income receivable 61 1,946 Dividends receivable 111,754 97,152 Accounts receivable from issue of units 1,242, ,285 1,088,715, ,844,319 Liabilities Operating expenses payable 17,208 15,599 Payables for redemption of units 67, ,377 Payables for investment purchases 1,186, ,335 1,270,793 1,272,311 Net Assets $ 1,087,444,646 $ 918,572,008 Number of Units Issued and Outstanding (Note 8) 54,119,720 49,665,021 Net Assets per Unit $ $ Investments at Cost $ 1,004,413,427 $ 874,390,270 Approved by BlackRock Asset Management Canada Limited, Manager of the Funds Eric Léveillé, Director Noel Archard, Director The accompanying notes are an integral part of the financial statements. 203

204 BlackRock Balanced Moderate Index DC Fund Statement of Operations For the Years Ended December Revenue Dividend income $ 17,078,611 $ 13,794,921 Interest income 14,399,875 14,532,726 Securities lending income 18,863 11,795 Foreign exchange gain (loss) (1,956) 2,996 Withholding taxes (271,457) (249,346) 31,223,936 28,093,092 Expenses Custodian fees Fund accounting expenses 5,737 6,208 Unitholder communication s Audit fees 9,585 10,210 Securities filing fees 16,696 13,386 Independent review committee fees 412 1,019 Other operating expenses 2,734 3,039 35,391 34,629 Net Investment Income for the Year 31,188,545 28,058,463 Gain (Loss) on Investments Net realized gain on sale of investments 5,605,998 7,464,171 Capital gains distributions received from other funds 6,044,112 3,455,761 Transaction s (Note 2,13) (5,946) (7,379) Net change in unrealized appreciation (depreciation) in of investments 38,625,851 (20,530,170) Net Gain (Loss) on Investments 50,270,015 (9,617,617) Increase in Net Assets from Operations $ 81,458,560 $ 18,440,846 Increase in Net Assets from Operations per Unit $ 1.59 $ 0.38 Statement of Changes in Net Assets For the Years Ended December Net Assets - Beginning of Year $ 918,572,008 $ 837,174,017 Increase in Net Assets from Operations 81,458,560 18,440,846 Capital Transactions Proceeds from issue of units 197,142, ,047,247 Reinvestment of distributions 30,735,590 27,088,056 Redemption of units (109,728,499) (100,090,102) Net capital transactions 118,149,668 90,045,201 Distributions From net investment income (30,735,590) (27,088,056) Total distributions (30,735,590) (27,088,056) Increase in Net Assets for the Year 168,872,638 81,397,991 Net Assets - End of Year $ 1,087,444,646 $ 918,572,008 The accompanying notes are an integral part of the financial statements. 204

205 BlackRock Balanced Moderate Index DC Fund Canadian Equity Index Equivalents 22.5% BlackRock Canadian Equity Index Class D 9,127, , ,781 ishares S&P/TSX Capped REIT Index Fund 1,578,835 19,425 27,030 Total Canadian Equity Index Equivalents 225, ,811 Canadian Fixed Income Index Equivalents 39.4% BlackRock Canada Real Return Bond Index Class D 6,852,574 93, ,267 BlackRock Canada Universe Bond Index Class D 13,644, , ,270 Total Canadian Fixed Income Index Equivalents 407, ,537 Foreign Index Equivalents 37.9% BlackRock CDN MSCI EAFE Equity Index Class D 14,683, , ,652 BlackRock CDN US Equity Index Class D 21,298, , ,472 ishares Dow Jones U.S. Real Estate Index Fund 420,740 23,884 27,126 ishares MSCI Emerging Markets Index Fund 1,192,933 50,457 52,798 Total Foreign Index Equivalents 371, ,048 Transaction Costs (Note 2) (16) Total Investments 1,004,413 1,085,396 Other Assets and Liabilities 0.2% 2,049 Net Assets 1,087,445 Portfolio Concentration (as a percentage of Net Assets) As at December 31, 2012 As at December 31, 2011 Portfolio by Category (%) (%) Canadian Equity Index Equivalents Canadian Fixed Income Index Equivalents Foreign Index Equivalents Other Assets and Liabilities The accompanying notes are an integral part of the financial statements. 205

206 BlackRock Balanced Conservative Index DC Fund Statement of Net Assets As at December Assets Investments - at fair (Note 2) $ 596,013,244 $ 489,253,101 Cash 676, ,118 Securities lending income receivable Dividends receivable 59,780 49,521 Accounts receivable from issue of units 54,957 61, ,804, ,294,641 Liabilities Operating expenses payable 13,869 13,282 Payables for redemption of units 434,447 70, ,316 84,056 Net Assets $ 596,356,496 $ 490,210,585 Number of Units Issued and Outstanding (Note 8) 31,033,126 27,336,843 Net Assets per Unit $ $ Investments at Cost $ 556,644,827 $ 461,043,449 Approved by BlackRock Asset Management Canada Limited, Manager of the Funds Eric Léveillé, Director Noel Archard, Director The accompanying notes are an integral part of the financial statements. 206

207 BlackRock Balanced Conservative Index DC Fund Statement of Operations For the Years Ended December Revenue Dividend income $ 6,561,338 $ 4,830,308 Interest income 12,336,155 10,979,970 Securities lending income 6,894 4,748 Foreign exchange gain (loss) (1,006) 4,125 Withholding taxes (131,992) (105,059) 18,771,389 15,714,092 Expenses Custodian fees Fund accounting expenses 5,674 6,208 Unitholder communication s Audit fees 9,406 9,850 Securities filing fees 9,415 6,635 Independent review committee fees Other operating expenses 1,772 2,330 26,771 26,315 Net Investment Income for the Year 18,744,618 15,687,777 Gain on Investments Net realized gain on sale of investments 3,186,341 3,043,650 Capital gains distributions received from other funds 5,024,251 2,748,216 Transaction s (Note 2,13) (2,658) (4,005) Net change in unrealized appreciation in of investments 11,158,765 3,613,549 Net Gain on Investments 19,366,699 9,401,410 Increase in Net Assets from Operations $ 38,111,317 $ 25,089,187 Increase in Net Assets from Operations per Unit $ 1.27 $ 1.01 Statement of Changes in Net Assets For the Years Ended December Net Assets - Beginning of Year $ 490,210,585 $ 399,023,930 Increase in Net Assets from Operations 38,111,317 25,089,187 Capital Transactions Proceeds from issue of units 129,649, ,742,208 Reinvestment of distributions 19,580,924 15,215,353 Redemption of units (61,615,306) (34,644,740) Net capital transactions 87,615,518 81,312,821 Distributions From net investment income (18,478,488) (15,215,353) From capital gains (1,102,436) - Total distributions (19,580,924) (15,215,353) Increase in Net Assets for the Year 106,145,911 91,186,655 Net Assets - End of Year $ 596,356,496 $ 490,210,585 The accompanying notes are an integral part of the financial statements. 207

208 BlackRock Balanced Conservative Index DC Fund Canadian Equity Index Equivalents 12.6% BlackRock Canadian Equity Index Class D 2,512,323 56,749 59,945 ishares S&P/TSX Capped REIT Index Fund 876,226 10,187 15,001 Total Canadian Equity Index Equivalents 66,936 74,946 Canadian Fixed Income Index Equivalents 59.6% BlackRock Canada Real Return Bond Index Class D 5,702,332 78,721 89,262 BlackRock Canada Universe Bond Index Class D 11,311, , ,330 Total Canadian Fixed Income Index Equivalents 340, ,592 Foreign Index Equivalents 27.7% BlackRock CDN MSCI EAFE Equity Index Class D 5,756,487 55,170 58,276 BlackRock CDN US Equity Index Class D 8,310,748 61,922 71,591 ishares Dow Jones U.S. Real Estate Index Fund 225,533 11,734 14,540 ishares MSCI Emerging Markets Index Fund 476,015 20,012 21,068 Total Foreign Index Equivalents 148, ,475 Transaction Costs (Note 2) (3) Total Investments 556, ,013 Other Assets and Liabilities 0.1% 343 Net Assets 596,356 Portfolio Concentration (as a percentage of Net Assets) As at December 31, 2012 As at December 31, 2011 Portfolio by Category (%) (%) Canadian Equity Index Equivalents Canadian Fixed Income Index Equivalents Foreign Index Equivalents Other Assets and Liabilities The accompanying notes are an integral part of the financial statements. 208

209 BlackRock Balanced Aggressive Index DC Fund Statement of Net Assets As at December Assets Investments - at fair (Note 2) $ 267,069,595 $ 223,745,144 Cash 514, ,313 Securities lending income receivable Dividends receivable 28,414 21,825 Accounts receivable from issue of units 128,806 46, ,741, ,237,956 Liabilities Operating expenses payable 11,541 11,901 Payables for redemption of units 70,741 60,838 Payables for investment purchases 95, ,826 72,739 Net Assets $ 267,563,258 $ 224,165,217 Number of Units Issued and Outstanding (Note 8) 13,509,000 12,456,344 Net Assets per Unit $ $ Investments at Cost $ 246,755,723 $ 218,085,097 Approved by BlackRock Asset Management Canada Limited, Manager of the Funds Eric Léveillé, Director Noel Archard, Director The accompanying notes are an integral part of the financial statements. 209

210 BlackRock Balanced Aggressive Index DC Fund Statement of Operations For the Years Ended December Revenue Dividend income $ 5,525,898 $ 4,443,530 Interest income 1,751,024 1,776,196 Securities lending income 2,810 1,784 Foreign exchange loss (1,877) (380) Withholding taxes (74,322) (68,819) 7,203,533 6,152,311 Expenses Custodian fees Fund accounting expenses 5,685 6,208 Unitholder communication s Audit fees 9,277 9,683 Securities filing fees 4,090 3,234 Independent review committee fees Other operating expenses 1,097 1,985 20,538 22,174 Net Investment Income for the Year 7,182,995 6,130,137 Gain (Loss) on Investments Net realized gain on sale of investments 771, ,743 Capital gains distributions received from other funds 740, ,952 Transaction s (Note 2,13) (1,271) (1,757) Net change in unrealized appreciation (depreciation) in of investments 14,653,825 (11,106,811) Net Gain (Loss) on Investments 16,164,607 (9,752,873) Increase (Decrease) in Net Assets from Operations $ 23,347,602 $ (3,622,736) Increase (Decrease) in Net Assets from Operations per Unit $ 1.82 $ (0.31) Statement of Changes in Net Assets For the Years Ended December Net Assets - Beginning of Year $ 224,165,217 $ 206,416,389 Increase (Decrease) in Net Assets from Operations 23,347,602 (3,622,736) Capital Transactions Proceeds from issue of units 41,660,456 38,616,497 Reinvestment of distributions 7,068,899 5,899,103 Redemption of units (21,610,017) (17,244,933) Net capital transactions 27,119,338 27,270,667 Distributions From net investment income (7,068,899) (5,899,103) Total distributions (7,068,899) (5,899,103) Increase in Net Assets for the Year 43,398,041 17,748,828 Net Assets - End of Year $ 267,563,258 $ 224,165,217 The accompanying notes are an integral part of the financial statements. 210

211 BlackRock Balanced Aggressive Index DC Fund Canadian Equity Index Equivalents 32.6% BlackRock Canadian Equity Index Class D 3,381,018 77,079 80,673 ishares S&P/TSX Capped REIT Index Fund 388,173 4,702 6,646 Total Canadian Equity Index Equivalents 81,781 87,319 Canadian Fixed Income Index Equivalents 19.6% BlackRock Canada Real Return Bond Index Class D 844,820 11,763 13,224 BlackRock Canada Universe Bond Index Class D 1,664,525 38,596 39,193 Total Canadian Fixed Income Index Equivalents 50,359 52,417 Foreign Index Equivalents 47.6% BlackRock CDN MSCI EAFE Equity Index Class D 4,606,941 44,467 46,639 BlackRock CDN US Equity Index Class D 6,705,863 48,897 57,766 ishares Dow Jones U.S. Real Estate Index Fund 99,751 5,438 6,431 ishares MSCI Emerging Markets Index Fund 372,761 15,819 16,498 Total Foreign Index Equivalents 114, ,334 Transaction Costs (Note 2) (5) Total Investments 246, ,070 Other Assets and Liabilities 0.2% 493 Net Assets 267,563 Portfolio Concentration (as a percentage of Net Assets) As at December 31, 2012 As at December 31, 2011 Portfolio by Category (%) (%) Canadian Equity Index Equivalents Canadian Fixed Income Index Equivalents Foreign Index Equivalents Other Assets and Liabilities The accompanying notes are an integral part of the financial statements. 211

212 BlackRock CDN LifePath Retirement Index Fund I Statement of Net Assets As at December Assets Investments - at fair (Note 2) $ 202,598,110 $ 129,510,853 Cash 396, ,967 Dividends receivable 1, ,889 Accounts receivable from issue of units 1, ,073 Accounts receivable for investment sales 388, ,385, ,692,782 Liabilities Operating expenses payable 11,089 11,411 Payables for redemption of units 390,021 - Payables for investment purchases - 793, , ,950 Net Assets $ 202,984,309 $ 129,887,832 Number of Units Issued and Outstanding (Note 8) 16,311,944 11,164,918 Net Assets per Unit $ $ Investments at Cost $ 197,704,668 $ 125,264,249 Approved by BlackRock Asset Management Canada Limited, Manager of the Funds Eric Léveillé, Director Noel Archard, Director The accompanying notes are an integral part of the financial statements. 212

213 BlackRock CDN LifePath Retirement Index Fund I Statement of Operations For the Years Ended December Revenue Dividend income $ 1,555,028 $ 721,540 Interest income 3,764,632 2,607,582 Securities lending income Foreign exchange loss (1,027) (1,803) Withholding taxes (32,588) (30,548) 5,286,337 3,296,981 Expenses Custodian fees 1,010 1,235 Fund accounting expenses 8,827 6,208 Unitholder communication s Audit fees 9,241 9,585 Securities filing fees 2,874 1,548 Independent review committee fees Other operating expenses 937 1,792 22,950 21,088 Net Investment Income for the Year 5,263,387 3,275,893 Gain on Investments Net realized gain on sale of investments 3,375, ,012 Capital gains distributions received from other funds 1,714, ,723 Transaction s (Note 2,13) (35,460) (12,217) Net change in unrealized appreciation in of investments 646, ,024 Net Gain on Investments 5,701,411 1,825,542 Increase in Net Assets from Operations $ 10,964,798 $ 5,101,435 Increase in Net Assets from Operations per Unit $ 0.81 $ 0.61 Statement of Changes in Net Assets For the Years Ended December Net Assets - Beginning of Year $ 129,887,832 $ 60,183,693 Increase in Net Assets from Operations 10,964,798 5,101,435 Capital Transactions Proceeds from issue of units 80,619,995 79,025,842 Reinvestment of distributions 10,145,119 4,307,104 Redemption of units (18,488,316) (14,423,138) Net capital transactions 72,276,798 68,909,808 Distributions From net investment income (5,316,320) (3,275,054) From capital gains (4,828,799) (1,032,050) Total distributions (10,145,119) (4,307,104) Increase in Net Assets for the Year 73,096,477 69,704,139 Net Assets - End of Year $ 202,984,309 $ 129,887,832 The accompanying notes are an integral part of the financial statements. 213

214 BlackRock CDN LifePath Retirement Index Fund I Canadian Equity Index Equivalents 13.9% BlackRock Canadian Equity Index Class D 638,110 14,969 15,226 BlackRock CDN Global Developed Real Estate Index Class D 962,428 9,706 10,255 BlackRock CDN Global Infrastructure Equity Index Class D 261,106 2,647 2,733 Total Canadian Equity Index Equivalents 27,322 28,214 Canadian Fixed Income Index Equivalents 59.5% BlackRock Canada Real Return Bond Index Class D 1,870,348 27,552 29,278 BlackRock Canada Universe Bond Index Class D 3,887,012 91,283 91,524 Total Canadian Fixed Income Index Equivalents 118, ,802 Foreign Index Equivalents 26.4% BlackRock CDN MSCI EAFE Equity Index Class D 1,609,422 15,413 16,293 BlackRock CDN US Equity Index Class D 2,262,444 19,061 19,489 ishares GSCI Commodity Trust 318,310 10,303 10,361 ishares MSCI Emerging Markets Index Fund 131,378 5,372 5,814 ishares Russell 2000 Index Fund 19,333 1,420 1,625 Total Foreign Index Equivalents 51,569 53,582 Transaction Costs (Note 2) (21) Total Investments 197, ,598 Other Assets and Liabilities 0.2% 386 Net Assets 202,984 Portfolio Concentration (as a percentage of Net Assets) As at December 31, 2012 As at December 31, 2011 Portfolio by Category (%) (%) Canadian Equity Index Equivalents Canadian Fixed Income Index Equivalents Foreign Index Equivalents Other Assets and Liabilities The accompanying notes are an integral part of the financial statements. 214

215 BlackRock CDN LifePath Index 2010 Retirement Fund Statement of Net Assets As at December Assets Investments - at fair (Note 2) $ 117,272,625 $ 116,532,968 Cash 228, ,339 Dividends receivable 1, ,621 Accounts receivable from issue of units 40, , ,543, ,981,256 Liabilities Operating expenses payable 10,518 11,347 Payables for investment purchases 40, ,000 51, ,347 Net Assets $ 117,492,142 $ 116,754,909 Number of Units Issued and Outstanding (Note 8) 9,640,781 10,249,180 Net Assets per Unit $ $ Investments at Cost $ 111,332,474 $ 109,045,645 Approved by BlackRock Asset Management Canada Limited, Manager of the Funds Eric Léveillé, Director Noel Archard, Director The accompanying notes are an integral part of the financial statements. 215

216 BlackRock CDN LifePath Index 2010 Retirement Fund Statement of Operations For the Years Ended December Revenue Dividend income $ 1,033,325 $ 724,577 Interest income 2,452,550 2,843,537 Securities lending income Foreign exchange loss (398) (923) Withholding taxes (23,333) (33,019) 3,462,144 3,534,435 Expenses Custodian fees Fund accounting expenses 9,003 6,208 Unitholder communication s Audit fees 9,227 9,609 Securities filing fees 1,947 1,787 Independent review committee fees Other operating expenses 825 1,840 21,601 20,702 Net Investment Income for the Year 3,440,543 3,513,733 Gain on Investments Net realized gain on sale of investments 5,065,591 2,309,939 Capital gains distributions received from other funds 985, ,154 Transaction s (Note 2,13) (24,721) (4,582) Net change in unrealized depreciation in of investments (1,547,172) (350,458) Net Gain on Investments 4,479,411 2,910,053 Increase in Net Assets from Operations $ 7,919,954 $ 6,423,786 Increase in Net Assets from Operations per Unit $ 0.79 $ 0.59 Statement of Changes In Net Assets For the Years Ended December Net Assets - Beginning of Year $ 116,754,909 $ 124,279,779 Increase in Net Assets from Operations 7,919,954 6,423,786 Capital Transactions Proceeds from issue of units 16,730,561 17,569,374 Reinvestment of distributions 8,321,691 3,607,032 Redemption of units (23,913,282) (31,518,030) Net capital transactions 1,138,970 (10,341,624) Distributions From net investment income (3,507,563) (3,512,640) From capital gains (4,814,128) (94,392) Total distributions (8,321,691) (3,607,032) Increase (Decrease) in Net Assets for the Year 737,233 (7,524,870) Net Assets - End of Year $ 117,492,142 $ 116,754,909 The accompanying notes are an integral part of the financial statements. 216

217 BlackRock CDN LifePath Index 2010 Retirement Fund Canadian Equity Index Equivalents 13.8% BlackRock Canadian Equity Index Class D 369,833 8,352 8,824 BlackRock CDN Global Developed Real Estate Index Class D 562,111 5,661 5,990 BlackRock CDN Global Infrastructure Equity Index Class D 139,682 1,411 1,462 Total Canadian Equity Index Equivalents 15,424 16,276 Canadian Fixed Income Index Equivalents 59.2% BlackRock Canada Real Return Bond Index Class D 1,076,213 14,402 16,847 BlackRock Canada Universe Bond Index Class D 2,236,691 51,101 52,665 Total Canadian Fixed Income Index Equivalents 65,503 69,512 Foreign Index Equivalents 26.8% BlackRock CDN MSCI EAFE Equity Index Class D 940,069 9,630 9,517 BlackRock CDN US Equity Index Class D 1,303,130 10,948 11,226 ishares GSCI Commodity Trust 189,690 5,798 6,174 ishares MSCI Emerging Markets Index Fund 80,295 3,192 3,554 ishares Russell 2000 Index Fund 12, ,014 Total Foreign Index Equivalents 30,428 31,485 Transaction Costs (Note 2) (23) Total Investments 111, ,273 Other Assets and Liabilities 0.2% 219 Net Assets 117,492 Portfolio Concentration (as a percentage of Net Assets) As at December 31, 2012 As at December 31, 2011 Portfolio by Category (%) (%) Canadian Equity Index Equivalents Canadian Fixed Income Index Equivalents Foreign Index Equivalents Other Assets and Liabilities The accompanying notes are an integral part of the financial statements. 217

218 BlackRock CDN LifePath 2015 Index Fund Statement of Net Assets As at December Assets Investments - at fair (Note 2) $ 515,711,235 $ 360,073,692 Cash 1,002,947 2,177,953 Dividends receivable 4, ,430 Accounts receivable from issue of units 662, ,697 Accounts receivable for investment sales 4,880,000 1,250, ,261, ,254,772 Liabilities Operating expenses payable 13,362 12,611 Payables for redemption of units 90,230 - Payables for investment purchases 5,454,058 3,459,619 5,557,650 3,472,230 Net Assets $ 516,704,000 $ 360,782,542 Number of Units Issued and Outstanding (Note 8) 43,480,529 32,731,212 Net Assets per Unit $ $ Investments at Cost $ 496,739,495 $ 343,106,376 Approved by BlackRock Asset Management Canada Limited, Manager of the Funds Eric Léveillé, Director Noel Archard, Director The accompanying notes are an integral part of the financial statements. 218

219 BlackRock CDN LifePath 2015 Index Fund Statement of Operations For the Years Ended December Revenue Dividend income $ 5,140,076 $ 3,036,206 Interest income 8,220,971 6,212,251 Securities lending income 1, Foreign exchange loss (4,285) (1,785) Withholding taxes (109,278) (127,540) 13,248,829 9,119,878 Expenses Custodian fees 1,207 1,381 Fund accounting expenses 8,789 6,208 Unitholder communication s Audit fees 9,346 9,737 Securities filing fees 7,426 4,539 Independent review committee fees Other operating expenses 1,513 2,085 28,440 24,901 Net Investment Income for the Year 13,220,389 9,094,977 Gain on Investments Net realized gain on sale of investments 13,127, ,095 Capital gains distributions received from other funds 3,746,794 2,393,168 Transaction s (Note 2,13) (94,659) (28,015) Net change in unrealized appreciation (depreciation) in of investments 2,004,424 (2,232,662) Net Gain on Investments 18,784, ,586 Increase in Net Assets from Operations $ 32,004,607 $ 10,000,563 Increase in Net Assets from Operations per Unit $ 0.86 $ 0.38 Statement of Changes in Net Assets For the Years Ended December Net Assets - Beginning of Year $ 360,782,542 $ 206,173,801 Increase in Net Assets from Operations 32,004,607 10,000,563 Capital Transactions Proceeds from issue of units 153,968, ,922,444 Reinvestment of distributions 29,452,938 12,378,896 Redemption of units (30,051,394) (19,314,266) Net capital transactions 153,369, ,987,074 Distributions From net investment income (13,367,526) (9,093,752) From capital gains (16,085,412) (3,285,144) Total distributions (29,452,938) (12,378,896) Increase in Net Assets for the Year 155,921, ,608,741 Net Assets - End of Year $ 516,704,000 $ 360,782,542 The accompanying notes are an integral part of the financial statements. 219

220 BlackRock CDN LifePath 2015 Index Fund Canadian Equity Index Equivalents 18.5% BlackRock Canadian Equity Index Class D 2,338,172 53,047 55,790 BlackRock CDN Global Developed Real Estate Index Class D 2,768,072 27,914 29,495 BlackRock CDN Global Infrastructure Equity Index Class D 1,000,527 10,120 10,475 Total Canadian Equity Index Equivalents 91,081 95,760 Canadian Fixed Income Index Equivalents 52.1% BlackRock Canada Real Return Bond Index Class D 4,555,217 65,997 71,305 BlackRock Canada Universe Bond Index Class D 8,400, , ,793 Total Canadian Fixed Income Index Equivalents 262, ,098 Foreign Index Equivalents 29.2% BlackRock CDN MSCI EAFE Equity Index Class D 4,681,331 44,772 47,392 BlackRock CDN US Equity Index Class D 6,549,874 54,215 56,422 ishares GSCI Commodity Trust 752,129 24,023 24,481 ishares MSCI Emerging Markets Index Fund 398,771 16,049 17,649 ishares Russell 2000 Index Fund 58,413 4,107 4,909 Total Foreign Index Equivalents 143, ,853 Transaction Costs (Note 2) (60) Total Investments 496, ,711 Other Assets and Liabilities 0.2% 993 Net Assets 516,704 Portfolio Concentration (as a percentage of Net Assets) As at December 31, 2012 As at December 31, 2011 Portfolio by Category (%) (%) Canadian Equity Index Equivalents Canadian Fixed Income Index Equivalents Foreign Index Equivalents Other Assets and Liabilities The accompanying notes are an integral part of the financial statements. 220

221 BlackRock CDN LifePath 2020 Index Fund Statement of Net Assets As at December Assets Investments - at fair (Note 2) $ 1,045,377,416 $ 719,090,762 Cash 2,018,561 2,790,655 Securities lending income receivable Dividends receivable 12,160 1,018,323 Accounts receivable from issue of units 926, ,366 Accounts receivable for investment sales 3,000,000-1,051,334, ,357,249 Liabilities Operating expenses payable 17,705 14,488 Payables for redemption of units 8, ,759 Payables for investment purchases 3,919,700 2,598,099 3,945,937 2,833,346 Net Assets $ 1,047,388,783 $ 720,523,903 Number of Units Issued and Outstanding (Note 8) 91,313,307 68,539,337 Net Assets per Unit $ $ Investments at Cost $ 998,899,387 $ 692,538,844 Approved by BlackRock Asset Management Canada Limited, Manager of the Funds Eric Léveillé, Director Noel Archard, Director The accompanying notes are an integral part of the financial statements. 221

222 BlackRock CDN LifePath 2020 Index Fund Statement of Operations For the Years Ended December Revenue Dividend income $ 13,582,333 $ 8,254,170 Interest income 12,939,553 10,241,294 Securities lending income 9,524 2,482 Foreign exchange loss (10,926) (2,524) Withholding taxes (270,261) (330,063) 26,250,223 18,165,359 Expenses Custodian fees 1,443 1,216 Fund accounting expenses 11,900 6,208 Unitholder communication s 601 Audit fees 9,516 9,995 Securities filing fees 14,997 9,546 Independent review committee fees Other operating expenses 2,480 2,595 40,665 30,892 Net Investment Income for the Year 26,209,558 18,134,467 Gain on Investments Net realized gain on sale of investments 22,255, ,870 Capital gains distributions received from other funds 6,917,571 4,968,564 Transaction s (Note 2,13) (190,584) (37,290) Net change in unrealized appreciation (depreciation) in of investments 19,926,111 (3,174,560) Net Gain on Investments 48,908,415 2,512,584 Increase in Net Assets from Operations $ 75,117,973 $ 20,647,051 Increase in Net Assets from Operations per Unit $ 0.96 $ 0.35 Statement of Changes In Net Assets For the Years Ended December Net Assets - Beginning of Year $ 720,523,903 $ 494,618,375 Increase in Net Assets from Operations 75,117,973 20,647,051 Capital Transactions Proceeds from issue of units 291,736, ,440,425 Reinvestment of distributions 50,447,101 18,132,690 Redemption of units (39,989,593) (33,181,948) Net capital transactions 302,194, ,391,167 Distributions From net investment income (26,452,339) (18,132,690) From capital gains (23,994,762) Total distributions (50,447,101) (18,132,690) Increase in Net Assets for the Year 326,864, ,905,528 Net Assets - End of Year $ 1,047,388,783 $ 720,523,903 The accompanying notes are an integral part of the financial statements. 222

223 BlackRock CDN LifePath 2020 Index Fund Canadian Equity Index Equivalents 26.8% BlackRock Canadian Equity Index Class D 7,225, , ,415 BlackRock CDN Global Developed Real Estate Index Class D 6,911,054 69,690 73,640 BlackRock CDN Global Infrastructure Equity Index Class D 3,261,431 33,049 34,145 Total Canadian Equity Index Equivalents 270, ,200 Canadian Fixed Income Index Equivalents 38.8% BlackRock Canada Long Bond Index Class D 14,156, , ,625 BlackRock Canada Real Return Bond Index Class D 7,784, , ,863 BlackRock Canada Universe Bond Index Class D 2,814,075 65,418 66,260 Total Canadian Fixed Income Index Equivalents 381, ,748 Foreign Index Equivalents 34.2% BlackRock CDN MSCI EAFE Equity Index Class D 11,568, , ,119 BlackRock CDN US Equity Index Class D 16,229, , ,808 ishares GSCI Commodity Trust 1,366,057 42,765 44,464 ishares MSCI Emerging Markets Index Fund 1,009,359 41,782 44,673 ishares Russell 2000 Index Fund 147,133 11,053 12,365 Total Foreign Index Equivalents 346, ,429 Transaction Costs (Note 2) (88) Total Investments 998,899 1,045,377 Other Assets and Liabilities 0.2% 2,012 Net Assets 1,047,389 Portfolio Concentration (as a percentage of Net Assets) As at December 31, 2012 As at December 31, 2011 Portfolio by Category (%) (%) Canadian Equity Index Equivalents Canadian Fixed Income Index Equivalents Foreign Index Equivalents Other Assets and Liabilities The accompanying notes are an integral part of the financial statements. 223

224 BlackRock CDN LifePath 2025 Index Fund Statement of Net Assets As at December Assets Investments - at fair (Note 2) $ 809,855,894 $ 471,902,344 Cash 1,557,506 4,500,660 Securities lending income receivable - 43 Dividends receivable 10, ,131 Accounts receivable from issue of units 783,851 1,265,720 Accounts receivable for investment sales 4,000, ,207, ,279,898 Liabilities Operating expenses payable 15,406 13,178 Payables for investment purchases 4,787,746 5,549,004 4,803,152 5,562,182 Net Assets $ 811,404,493 $ 472,717,716 Number of Units Issued and Outstanding (Note 8) 71,753,741 45,967,392 Net Assets per Unit $ $ Investments at Cost $ 771,374,929 $ 451,798,769 Approved by BlackRock Asset Management Canada Limited, Manager of the Funds Eric Léveillé, Director Noel Archard, Director The accompanying notes are an integral part of the financial statements. 224

225 BlackRock CDN LifePath 2025 Index Fund Statement of Operations For the Years Ended December Revenue Dividend income $ 11,470,590 $ 6,130,629 Interest income 7,852,960 4,941,839 Securities lending income 3,659 1,290 Foreign exchange loss (12,855) (3,870) Withholding taxes (222,240) (234,063) 19,092,114 10,835,825 Expenses Custodian fees 1,591 1,757 Fund accounting expenses 8,799 6,208 Unitholder communication s Audit fees 9,410 9,793 Securities filing fees 11,024 5,808 Independent review committee fees Other operating expenses 1,960 2,203 33,006 26,820 Net Investment Income for the Year 19,059,108 10,809,005 Gain (Loss) on Investments Net realized gain on sale of investments 16,722, ,357 Capital gains distributions received from other funds 4,621,524 2,736,935 Transaction s (Note 2,13) (143,104) (36,532) Net change in unrealized appreciation (depreciation) in of investments 18,377,390 (7,302,880) Net Gain (Loss) on Investments 39,578,218 (4,140,120) Increase in Net Assets from Operations $ 58,637,326 $ 6,668,885 Increase in Net Assets from Operations per Unit $ 1.03 $ 0.19 Statement of Changes in Net Assets For the Years Ended December Net Assets - Beginning of Year $ 472,717,716 $ 256,858,209 Increase in Net Assets from Operations 58,637,326 6,668,885 Capital Transactions Proceeds from issue of units 316,280, ,422,190 Reinvestment of distributions 40,023,113 13,760,658 Redemption of units (36,231,524) (9,231,568) Net capital transactions 320,072, ,951,280 Distributions From net investment income (19,135,340) (10,806,093) From capital gains (20,887,773) (2,954,565) Total distributions (40,023,113) (13,760,658) Increase in Net Assets for the Year 338,686, ,859,507 Net Assets - End of Year $ 811,404,493 $ 472,717,716 The accompanying notes are an integral part of the financial statements. 225

226 BlackRock CDN LifePath 2025 Index Fund Canadian Equity Index Equivalents 30.5% BlackRock Canadian Equity Index Class D 6,560, , ,545 BlackRock CDN Global Developed Real Estate Index Class D 5,855,947 59,112 62,397 BlackRock CDN Global Infrastructure Equity Index Class D 2,726,785 27,626 28,548 Total Canadian Equity Index Equivalents 237, ,490 Canadian Fixed Income Index Equivalents 30.5% BlackRock Canada Long Bond Index Class D 13,612, , ,213 BlackRock Canada Real Return Bond Index Class D 2,370,813 34,928 37,112 Total Canadian Fixed Income Index Equivalents 236, ,325 Foreign Index Equivalents 38.8% BlackRock CDN MSCI EAFE Equity Index Class D 10,331,523 99, ,592 BlackRock CDN US Equity Index Class D 14,372, , ,808 ishares GSCI Commodity Trust 1,162,006 37,256 37,823 ishares MSCI Emerging Markets Index Fund 862,824 35,465 38,188 ishares Russell 2000 Index Fund 126,493 9,233 10,630 Total Foreign Index Equivalents 298, ,041 Transaction Costs (Note 2) (96) Total Investments 771, ,856 Other Assets and Liabilities 0.2% 1,548 Net Assets 811,404 Portfolio Concentration (as a percentage of Net Assets) As at December 31, 2012 As at December 31, 2011 Portfolio by Category (%) (%) Canadian Equity Index Equivalents Canadian Fixed Income Index Equivalents Foreign Index Equivalents Other Assets and Liabilities The accompanying notes are an integral part of the financial statements. 226

227 BlackRock CDN LifePath 2030 Index Fund Statement of Net Assets As at December Assets Investments - at fair (Note 2) $ 809,263,109 $ 514,229,972 Cash 1,547,738 2,876,728 Securities lending income receivable Dividends receivable 11, ,178 Accounts receivable from issue of units 1,109,314 1,070,845 Accounts receivable for investment sales 3,950,000 2,250, ,881, ,008,429 Liabilities Operating expenses payable 15,402 13,395 Payables for redemption of units 9,713 - Payables for investment purchases 5,055,392 5,730,440 5,080,507 5,743,835 Net Assets $ 810,801,034 $ 515,264,594 Number of Units Issued and Outstanding (Note 8) 75,451,453 53,010,297 Net Assets per Unit $ $ 9.72 Investments at Cost $ 779,142,079 $ 510,456,160 Approved by BlackRock Asset Management Canada Limited, Manager of the Funds Eric Léveillé, Director Noel Archard, Director The accompanying notes are an integral part of the financial statements. 227

228 BlackRock CDN LifePath 2030 Index Fund Statement of Operations For the Years Ended December Revenue Dividend income $ 13,601,201 $ 8,236,095 Interest income 5,857,483 3,773,098 Securities lending income 730 2,469 Foreign exchange loss (9,813) (4,211) Withholding taxes (253,023) (305,427) 19,196,578 11,702,024 Expenses Custodian fees 1,359 1,352 Fund accounting expenses 8,942 6,208 Unitholder communication s Audit fees 9,424 9,846 Securities filing fees 11,313 6,702 Independent review committee fees Other operating expenses 2,007 2,307 33,286 27,530 Net Investment Income for the Year 19,163,292 11,674,494 Gain (Loss) on Investments Net realized gain on sale of investments 15,807, ,452 Capital gains distributions received from other funds 3,472,742 2,370,056 Transaction s (Note 2,13) (129,641) (27,955) Net change in unrealized appreciation (depreciation) in of investments 26,347,218 (16,609,622) Net Gain (Loss) on Investments 45,497,996 (13,850,069) Increase (Decrease) in Net Assets from Operations $ 64,661,288 $ (2,175,575) Increase (Decrease) in Net Assets from Operations per Unit $ 1.03 $ (0.05) Statement of Changes in Net Assets For the Years Ended December Net Assets - Beginning of Year $ 515,264,594 $ 338,311,860 Increase (Decrease) in Net Assets from Operations 64,661,288 (2,175,575) Capital Transactions Proceeds from issue of units 270,971, ,819,482 Reinvestment of distributions 36,348,156 11,672,161 Redemption of units (40,096,517) (16,691,173) Net capital transactions 267,223, ,800,470 Distributions From net investment income (19,201,263) (11,672,161) From capital gains (17,146,893) - Total distributions (36,348,156) (11,672,161) Increase in Net Assets for the Year 295,536, ,952,734 Net Assets - End of Year $ 810,801,034 $ 515,264,594 The accompanying notes are an integral part of the financial statements. 228

229 BlackRock CDN LifePath 2030 Index Fund Canadian Equity Index Equivalents 36.0% BlackRock Canadian Equity Index Class D 8,057, , ,263 BlackRock CDN Global Developed Real Estate Index Class D 6,235,679 62,878 66,444 BlackRock CDN Global Infrastructure Equity Index Class D 3,171,630 32,101 33,205 Total Canadian Equity Index Equivalents 283, ,912 Canadian Fixed Income Index Equivalents 21.9% BlackRock Canada Long Bond Index Class D 11,500, , ,610 Total Canadian Fixed Income Index Equivalents 169, ,610 Foreign Index Equivalents 41.9% BlackRock CDN MSCI EAFE Equity Index Class D 11,428, , ,693 BlackRock CDN US Equity Index Class D 15,830, , ,368 ishares GSCI Commodity Trust 1,037,410 32,636 33,767 ishares MSCI Emerging Markets Index Fund 944,661 39,313 41,810 ishares Russell 2000 Index Fund 144,023 10,738 12,103 Total Foreign Index Equivalents 326, ,741 Transaction Costs (Note 2) (84) Total Investments 779, ,263 Other Assets and Liabilities 0.2% 1,538 Net Assets 810,801 Portfolio Concentration (as a percentage of Net Assets) As at December 31, 2012 As at December 31, 2011 Portfolio by Category (%) (%) Canadian Equity Index Equivalents Canadian Fixed Income Index Equivalents Foreign Index Equivalents Other Assets and Liabilities The accompanying notes are an integral part of the financial statements. 229

230 BlackRock CDN LifePath 2035 Index Fund Statement of Net Assets As at December Assets Investments - at fair (Note 2) $ 490,926,336 $ 277,006,931 Cash 974,263 1,740,375 Dividends receivable 7, ,706 Accounts receivable from issue of units 822, ,060 Accounts receivable for investment sales 1,600,000 1,736, ,330, ,422,072 Liabilities Operating expenses payable 13,218 12,189 Payables for redemption of units ,489 Payables for investment purchases 2,438,155 3,732,203 2,451,419 3,870,881 Net Assets $ 491,878,778 $ 277,551,191 Number of Units Issued and Outstanding (Note 8) 47,080,185 29,501,547 Net Assets per Unit $ $ 9.41 Investments at Cost $ 468,633,699 $ 272,959,609 Approved by BlackRock Asset Management Canada Limited, Manager of the Funds Eric Léveillé, Director Noel Archard, Director The accompanying notes are an integral part of the financial statements. 230

231 BlackRock CDN LifePath 2035 Index Fund Statement of Operations For the Years Ended December Revenue Dividend income $ 9,020,460 $ 5,362,109 Interest income 2,257,824 1,140,220 Securities lending income 2, Foreign exchange loss (4,893) (3,483) Withholding taxes (164,903) (174,530) 11,110,968 6,325,172 Expenses Custodian fees 1,544 1,342 Fund accounting expenses 8,842 6,208 Unitholder communication s Audit fees 9,318 9,672 Securities filing fees 6,636 3,377 Independent review committee fees Other operating expenses 1,406 1,970 27,881 23,432 Net Investment Income for the Year 11,083,087 6,301,740 Gain (Loss) on Investments Net realized gain on sale of investments 8,576, ,806 Capital gains distributions received from other funds 1,398, ,211 Transaction s (Note 2,13) (74,206) (18,656) Net change in unrealized appreciation (depreciation) in of investments 18,245,315 (12,695,722) Net Gain (Loss) on Investments 28,146,121 (12,134,361) Increase (Decrease) in Net Assets from Operations $ 39,229,208 $ (5,832,621) Increase (Decrease) in Net Assets from Operations per Unit $ 1.05 $ (0.27) Statement of Changes in Net Assets For the Years Ended December Net Assets - Beginning of Year $ 277,551,191 $ 147,973,109 Increase (Decrease) in Net Assets from Operations 39,229,208 (5,832,621) Capital Transactions Proceeds from issue of units 193,213, ,852,908 Reinvestment of distributions 20,973,420 6,786,217 Redemption of units (18,114,960) (5,442,205) Net capital transactions 196,071, ,196,920 Distributions From net investment income (11,052,951) (5,822,029) From capital gains (9,920,469) (964,188) Total distributions (20,973,420) (6,786,217) Increase in Net Assets for the Year 214,327, ,578,082 Net Assets - End of Year $ 491,878,778 $ 277,551,191 The accompanying notes are an integral part of the financial statements. 231

232 BlackRock CDN LifePath 2035 Index Fund Canadian Equity Index Equivalents 41.7% BlackRock Canadian Equity Index Class D 5,853, , ,665 BlackRock CDN Global Developed Real Estate Index Class D 3,953,748 39,881 42,129 BlackRock CDN Global Infrastructure Equity Index Class D 2,246,009 22,733 23,514 Total Canadian Equity Index Equivalents 197, ,308 Canadian Fixed Income Index Equivalents 14.3% BlackRock Canada Long Bond Index Class D 4,541,948 68,074 70,142 Total Canadian Fixed Income Index Equivalents 68,074 70,142 Foreign Index Equivalents 43.8% BlackRock CDN MSCI EAFE Equity Index Class D 7,500,094 72,781 75,928 BlackRock CDN US Equity Index Class D 10,351,056 82,587 89,166 ishares GSCI Commodity Trust 500,646 15,944 16,296 ishares MSCI Emerging Markets Index Fund 595,789 24,641 26,369 ishares Russell 2000 Index Fund 91,825 6,785 7,717 Total Foreign Index Equivalents 202, ,476 Transaction Costs (Note 2) (53) Total Investments 468, ,926 Other Assets and Liabilities 0.2% 953 Net Assets 491,879 Portfolio Concentration (as a percentage of Net Assets) As at December 31, 2012 As at December 31, 2011 Portfolio by Category (%) (%) Canadian Equity Index Equivalents Canadian Fixed Income Index Equivalents Foreign Index Equivalents Other Assets and Liabilities The accompanying notes are an integral part of the financial statements. 232

233 BlackRock CDN LifePath 2040 Index Fund Statement of Net Assets As at December Assets Investments - at fair (Note 2) $ 428,631,543 $ 265,429,372 Cash 814,981 1,118,839 Dividends receivable 6, ,476 Accounts receivable from issue of units 745, ,780 Accounts receivable for investment sales 1,300,000 2,361, ,499, ,759,363 Liabilities Operating expenses payable 12,739 12,151 Payables for redemption of units 103,300 11,411 Payables for investment purchases 1,944,017 3,791,396 2,060,056 3,814,958 Net Assets $ 429,438,971 $ 265,944,405 Number of Units Issued and Outstanding (Note 8) 42,117,731 29,072,170 Net Assets per Unit $ $ 9.15 Investments at Cost $ 410,786,173 $ 265,893,113 Approved by BlackRock Asset Management Canada Limited, Manager of the Funds Eric Léveillé, Director Noel Archard, Director The accompanying notes are an integral part of the financial statements. 233

234 BlackRock CDN LifePath 2040 Index Fund Statement of Operations For the Years Ended December Revenue Dividend income $ 8,866,958 $ 5,862,494 Interest income 1,087, ,044 Securities lending income 1, Foreign exchange loss (3,439) (1,952) Withholding taxes (159,874) (190,953) 9,792,455 6,129,576 Expenses Custodian fees 1, Fund accounting expenses 8,936 6,208 Unitholder communication s Audit fees 9,309 9,682 Securities filing fees 5,957 3,439 Independent review committee fees Other operating expenses 1,327 1,986 26,902 23,134 Net Investment Income for the Year 9,765,553 6,106,442 Gain (Loss) on Investments Net realized gain on sale of investments 8,319,910 37,848 Capital gains distributions received from other funds 693, ,378 Transaction s (Note 2,13) (56,455) (13,453) Net change in unrealized appreciation (depreciation) in of investments 18,309,111 (15,126,109) Net Gain (Loss) on Investments 27,266,038 (14,933,336) Increase (Decrease) in Net Assets from Operations $ 37,031,591 $ (8,826,894) Increase (Decrease) in Net Assets from Operations per Unit $ 1.06 $ (0.38) Statement of Changes in Net Assets For the Years Ended December Net Assets - Beginning of Year $ 265,944,405 $ 175,535,164 Increase (Decrease) in Net Assets from Operations 37,031,591 (8,826,894) Capital Transactions Proceeds from issue of units 143,547, ,085,035 Reinvestment of distributions 19,563,837 5,918,460 Redemption of units (17,084,291) (11,848,900) Net capital transactions 146,026, ,154,595 Distributions From net investment income (9,713,462) (5,638,446) From capital gains (9,850,375) (280,014) Total distributions (19,563,837) (5,918,460) Increase in Net Assets for the Year 163,494,566 90,409,241 Net Assets - End of Year $ 429,438,971 $ 265,944,405 The accompanying notes are an integral part of the financial statements. 234

235 BlackRock CDN LifePath 2040 Index Fund Canadian Equity Index Equivalents 46.7% BlackRock Canadian Equity Index Class D 5,881, , ,331 BlackRock CDN Global Developed Real Estate Index Class D 3,493,513 35,220 37,225 BlackRock CDN Global Infrastructure Equity Index Class D 2,187,130 22,140 22,898 Total Canadian Equity Index Equivalents 193, ,454 Canadian Fixed Income Index Equivalents 8.0% BlackRock Canada Long Bond Index Class D 2,229,181 33,649 34,426 Total Canadian Fixed Income Index Equivalents 33,649 34,426 Foreign Index Equivalents 45.1% BlackRock CDN MSCI EAFE Equity Index Class D 6,944,560 69,493 70,304 BlackRock CDN US Equity Index Class D 9,617,615 76,422 82,848 ishares GSCI Commodity Trust 274,280 8,464 8,928 ishares MSCI Emerging Markets Index Fund 557,377 23,088 24,669 ishares Russell 2000 Index Fund 83,334 6,088 7,003 Total Foreign Index Equivalents 183, ,752 Transaction Costs (Note 2) (45) Total Investments 410, ,632 Other Assets and Liabilities 0.2% 807 Net Assets 429,439 Portfolio Concentration (as a percentage of Net Assets) As at December 31, 2012 As at December 31, 2011 Portfolio by Category (%) (%) Canadian Equity Index Equivalents Canadian Fixed Income Index Equivalents Foreign Index Equivalents Other Assets and Liabilities The accompanying notes are an integral part of the financial statements. 235

236 BlackRock CDN LifePath 2045 Index Fund Statement of Net Assets As at December Assets Investments - at fair (Note 2) $ 263,650,534 $ 123,043,668 Cash 499, ,275 Dividends receivable 4,286 57,832 Accounts receivable from issue of units 549, ,251 Accounts receivable for investment sales - 1,440, ,704, ,057,026 Liabilities Operating expenses payable 11,560 11,404 Payables for redemption of units Payables for investment purchases 550,659 2,638, ,023 2,649,825 Net Assets $ 264,141,289 $ 123,407,201 Number of Units Issued and Outstanding (Note 8) 25,076,541 13,108,318 Net Assets per Unit $ $ 9.41 Investments at Cost $ 251,529,156 $ 123,422,077 Approved by BlackRock Asset Management Canada Limited, Manager of the Funds Eric Léveillé, Director Noel Archard, Director The accompanying notes are an integral part of the financial statements. 236

237 BlackRock CDN LifePath 2045 Index Fund Statement of Operations For the Years Ended December Revenue Dividend income $ 5,528,964 $ 2,714,838 Interest income 152,993 2,790 Securities lending income Foreign exchange loss (1,262) (1,868) Withholding taxes (92,774) (81,925) 5,588,059 2,633,964 Expenses Custodian fees 1,455 1,388 Fund accounting expenses 8,906 6,208 Unitholder communication s Audit fees 9,247 9,580 Securities filing fees 3,396 1,460 Independent review committee fees Other operating expenses 999 1,786 24,071 21,136 Net Investment Income for the Year 5,563,988 2,612,828 Gain (Loss) on Investments Net realized gain on sale of investments 3,165, ,201 Capital gains distributions received from other funds 133,028 - Transaction s (Note 2,13) (30,310) (8,160) Net change in unrealized appreciation (depreciation) in of investments 12,499,787 (8,101,608) Net Gain (Loss) on Investments 15,768,458 (7,964,567) Increase (Decrease) in Net Assets from Operations $ 21,332,446 $ (5,351,739) Increase (Decrease) in Net Assets from Operations per Unit $ 1.14 $ (0.58) Statement of Changes in Net Assets For the Years Ended December Net Assets - Beginning of Year $ 123,407,201 $ 60,421,524 Increase (Decrease) in Net Assets from Operations 21,332,446 (5,351,739) Capital Transactions Proceeds from issue of units 127,755,310 72,260,406 Reinvestment of distributions 8,889,113 2,790,134 Redemption of units (8,353,668) (3,922,990) Net capital transactions 128,290,755 71,127,550 Distributions From net investment income (5,508,903) (2,468,194) From capital gains (3,380,210) (321,940) Total distributions (8,889,113) (2,790,134) Increase in Net Assets for the Year 140,734,088 62,985,677 Net Assets - End of Year $ 264,141,289 $ 123,407,201 The accompanying notes are an integral part of the financial statements. 237

238 BlackRock CDN LifePath 2045 Index Fund Statement of Investment Portfolio As at December 31, 2011 Canadian Equity Index Equivalents 51.1% BlackRock Canadian Equity Index Class D 4,052,391 93,840 96,692 BlackRock CDN Global Developed Real Estate Index Class D 2,162,884 21,830 23,046 BlackRock CDN Global Infrastructure Equity Index Class D 1,459,851 14,796 15,284 Total Canadian Equity Index Equivalents 130, ,022 Canadian Fixed Income Index Equivalents 2.3% BlackRock Canada Long Bond Index Class D 388,580 6,136 6,001 Total Canadian Fixed Income Index Equivalents 6,136 6,001 Foreign Index Equivalents 46.4% BlackRock CDN MSCI EAFE Equity Index Class D 4,556,371 44,057 46,127 BlackRock CDN US Equity Index Class D 6,232,199 49,613 53,686 ishares GSCI Commodity Trust 73,849 2,443 2,404 ishares MSCI Emerging Markets Index Fund 355,762 14,679 15,746 ishares Russell 2000 Index Fund 55,517 4,157 4,665 Total Foreign Index Equivalents 114, ,628 Transaction Costs (Note 2) (22) Total Investments 251, ,651 Other Assets and Liabilities 0.2% 490 Net Assets 264,141 Portfolio Concentration (as a percentage of Net Assets) As at December 31, 2012 As at December 31, 2011 Portfolio by Category (%) (%) Canadian Equity Index Equivalents Canadian Fixed Income Index Equivalents Foreign Index Equivalents Other Assets and Liabilities The accompanying notes are an integral part of the financial statements. 238

239 BlackRock CDN LifePath 2050 Index Fund (Note 1) Statement of Net Assets As at December 31 Assets Investments - at fair (Note 2) $ 6,945,378 Cash 27,617 Dividends receivable 113 Accounts receivable from issue of units 41, ,014,286 Liabilities Operating expenses payable 12,266 Payables for investment purchases 55,271 Net Assets $ 6,946,749 Number of Units Issued and Outstanding (Note 8) 646,991 Net Assets per Unit $ Investments at Cost $ 6,719,778 67,537 Approved by BlackRock Asset Management Canada Limited, Manager of the Funds Eric Léveillé, Director Noel Archard, Director The accompanying notes are an integral part of the financial statements. 239

240 BlackRock CDN LifePath 2050 Index Fund (Note 1) Statement of Operations For the Period Ended December 31 Revenue Dividend income $ 79,891 Foreign exchange loss (81) Withholding taxes (519) Expenses Custodian fees 580 Fund accounting expenses 2,628 Unitholder communication s 251 Audit fees 11,246 Securities filing fees 52 Other operating expenses 1 Net Investment Income for the Period 64,533 Gain on Investments Net realized gain on sale of investments 2,929 Capital gains distributions received from other funds 524 Transaction s (Note 2,13) (171) Net change in unrealized appreciation in of investments 225,600 Net Gain on Investments 228,882 Increase in Net Assets from Operations $ 293,415 Increase in Net Assets from Operations per Unit $ ,291 14,758 Statement of Changes in Net Assets For the Period Ended December 31 Net Assets - Beginning of Period $ - Increase in Net Assets from Operations 293,415 Capital Transactions Proceeds from issue of units 6,684,734 Reinvestment of distributions 68,000 Redemption of units (31,400) Net capital transactions 6,721,334 Distributions From net investment income (64,547) From capital gains (3,453) Total distributions (68,000) Increase in Net Assets for the Period 6,946,749 Net Assets - End of Period $ 6,946, The accompanying notes are an integral part of the financial statements. 240

241 BlackRock CDN LifePath 2050 Index Fund Canadian Equity Index Equivalents 52.8% BlackRock Canadian Equity Index Class D 112,440 2,620 2,683 BlackRock CDN Global Developed Real Estate Index Class D 54, BlackRock CDN Global Infrastructure Equity Index Class D 38, Total Canadian Equity Index Equivalents 3,563 3,666 Foreign Index Equivalents 47.2% BlackRock CDN MSCI EAFE Equity Index Class D 123,153 1,179 1,247 BlackRock CDN US Equity Index Class D 168,643 1,440 1,453 ishares GSCI Commodity Trust ishares MSCI Emerging Markets Index Fund 9, ishares Russell 2000 Index Fund 1, Total Foreign Index Equivalents 3,157 3,279 Total Investments 6,720 6,945 Other Assets and Liabilities 0.0% 2 Net Assets 6,947 Portfolio Concentration (as a percentage of Net Assets) As at Portfolio by Category December 31, 2012 (%) Canadian Equity Index Equivalents 52.8 Foreign Index Equivalents 47.2 Other Assets and Liabilities - The accompanying notes are an integral part of the financial statements. 241

242 BlackRock Balanced Active Fund Statement of Net Assets As at December Assets Investments - at fair (Note 2) $ 35,050,014 $ 32,015,118 Cash 40,335 26,492 Dividends receivable 3,268 3,428 Accounts receivable for investment sales 107, ,163 35,201,440 32,233,201 Liabilities Operating expenses payable 9,830 10,891 Payables for investment purchases 135, , , ,891 Net Assets $ 35,056,027 $ 32,042,310 Number of Units Issued and Outstanding (Note 8) 1,300,090 1,300,090 Net Assets per Unit $ $ Investments at Cost $ 33,947,467 $ 33,004,339 Approved by BlackRock Asset Management Canada Limited, Manager of the Funds Eric Léveillé, Director Noel Archard, Director The accompanying notes are an integral part of the financial statements. 242

243 BlackRock Balanced Active Fund Statement of Operations For the Years Ended December Revenue Dividend income $ 316,425 $ 271,680 Interest income 365, ,044 Foreign exchange loss (910) (1,594) Withholding taxes (9,216) (8,962) 671, ,168 Expenses Custodian fees Fund accounting expenses 6,157 6,208 Unitholder communication s Audit fees 9,192 9,543 Securities filing fees Independent review committee fees Other operating expenses 639 1,707 16,597 18,677 Net Investment Income for the Year 654, ,491 Gain (Loss) on Investments Net realized gain on sale of investments 107,861 39,141 Capital gains distributions received from other funds 159, ,566 Transaction s (Note 2,13) (174) (784) Net change in unrealized appreciation (depreciation) in of investments 2,091,768 (483,896) Net Gain (Loss) on Investments 2,358,720 (128,973) Increase in Net Assets from Operations $ 3,013,717 $ 558,518 Increase in Net Assets from Operations per Unit $ 2.32 $ 0.39 Statement of Changes in Net Assets For the Years Ended December Net Assets - Beginning of Year $ 32,042,310 $ 43,887,794 Increase in Net Assets from Operations 3,013, ,518 Capital Transactions Reinvestment of distributions 642, ,749 Redemption of units - (12,404,002) Net capital transactions 642,333 (11,766,253) Distributions From net investment income (642,333) (637,749) Total distributions (642,333) (637,749) Increase (Decrease) in Net Assets for the Year 3,013,717 (11,845,484) Net Assets - End of Year $ 35,056,027 $ 32,042,310 The accompanying notes are an integral part of the financial statements. 243

244 BlackRock Balanced Active Fund Canadian Equity Index Equivalents 2.2% ishares S&P/TSX Capped REIT Index Fund 44, Total Canadian Equity Index Equivalents Canadian Equity Investments 23.8% BlackRock Active Canadian Equity Fund 250,328 8,254 8,346 Total Canadian Equity Investments 8,254 8,346 Canadian Fixed Income Investments 33.2% BlackRock Canada CoreActive Universe Bond Class A 556,432 12,243 11,635 Total Canadian Fixed Income Investments 12,243 11,635 Foreign Index Equivalents 7.7% ishares Dow Jones U.S. Real Estate Index Fund 13, ishares MSCI Emerging Markets Index Fund 41,450 1,714 1,834 Total Foreign Index Equivalents 2,457 2,715 Foreign Investments 33.1% Alpha Tilts Fund B 111,244 3,960 4,908 BlackRock CDN Global Market Selection Class A 31,565 1,820 1,601 International Alpha Tilts Fund B 234,153 4,732 5,076 Total Foreign Investments 10,512 11,585 Transaction Costs (Note 2) (1) Total Investments 33,947 35,050 Other Assets and Liabilities 0.0% 6 Net Assets 35,056 Portfolio Concentration (as a percentage of Net Assets) As at December 31, 2012 As at December 31, 2011 Portfolio by Category (%) (%) Canadian Equity Index Equivalents Canadian Equity Investments Canadian Fixed Income Investments Foreign Index Equivalents Foreign Investments Other Assets and Liabilities The accompanying notes are an integral part of the financial statements. 244

245 BlackRock CDN Global Market Selection Fund Statement of Net Assets As at December Assets Investments - at fair (Note 2) $ 711,906,997 $ 869,519,944 Cash 4,132,141 1,221,677 Net unrealized gain on forward currency contracts (Note 5) 643,832 30,206,282 Accounts receivable for investment sales 1,110, ,793, ,947,903 Liabilities Operating expenses payable 25,160 25,538 Payables for redemption of units 3,483,500 - Payables for investment purchases - 22,715,229 Net unrealized loss on forward currency contracts (Note 5) 1,253,148 3,222,149 4,761,808 25,962,916 Net Assets $ 713,031,245 $ 874,984,987 Net Assets per Class Class A $ 713,031,245 $ 874,984,987 $ 713,031,245 $ 874,984,987 Number of Units Issued and Outstanding (Note 8) Class A 14,057,698 17,691,971 Net Assets per Unit Class A $ $ Investments at Cost $ 655,128,110 $ 790,751,749 Approved by BlackRock Asset Management Canada Limited, Manager of the Funds Eric Léveillé, Director Noel Archard, Director The accompanying notes are an integral part of the financial statements. 245

246 BlackRock CDN Global Market Selection Fund Statement of Operations For the Years Ended December Revenue Interest income $ 2,289 $ 11,217 Foreign exchange gain (loss) (20,751) 353,630 (18,462) 364,847 Expenses Custodian fees Fund accounting expenses 10,933 13,303 Unitholder communication s Audit fees 19,096 20,319 Securities filing fees 12,434 13,188 Independent review committee fees Other operating expenses 2,207 3,028 45,514 51,890 Net Investment Income for the Year (63,976) 312,957 Gain (Loss) on Investments Net realized gain on sale of investments 28,979,254 8,376,601 Net realized gain (loss) from forward currency contracts 50,863,752 (21,623,690) Net change in unrealized depreciation in of investments (21,989,308) (35,635,702) Net change in unrealized appreciation (depreciation) in of forward currency contracts (27,593,449) 7,756,690 Net Gain (Loss) on Investments 30,260,249 (41,126,101) Increase (Decrease) in Net Assets from Operations $ 30,196,273 $ (40,813,144) Increase (Decrease) in Net Assets from Operations per Class Class A $ 30,196,273 $ (40,813,144) $ 30,196,273 $ (40,813,144) Increase (Decrease) in Net Assets from Operations per Unit Class A $ 2.01 $ (2.38) The accompanying notes are an integral part of the financial statements. 246

247 BlackRock CDN Global Market Selection Fund Statement of Changes in Net Assets For the Years Ended December Net Assets - Beginning of Year $ 874,984,987 $ 841,551,038 $ 874,984,987 $ 841,551,038 Increase (Decrease) in Net Assets from Operations 30,196,273 (40,813,144) 30,196,273 (40,813,144) Capital Transactions Proceeds from issue of units 12,164,354 76,695,726 12,164,354 76,695,726 Reinvestment of distributions 18,026,348-18,026,348 - Redemption of units (204,314,369) (2,448,633) (204,314,369) (2,448,633) Net capital transactions (174,123,667) 74,247,093 (174,123,667) 74,247,093 Distributions From capital gains (18,026,348) - (18,026,348) - Total distributions (18,026,348) - (18,026,348) - Increase (Decrease) in Net Assets for the Year (161,953,742) 33,433,949 (161,953,742) 33,433,949 Net Assets - End of Year $ 713,031,245 $ 874,984,987 $ 713,031,245 $ 874,984,987 Fund Class A The accompanying notes are an integral part of the financial statements. 247

248 BlackRock CDN Global Market Selection Fund Foreign Investments 99.8% Global Ascent Ltd.* 476, , ,907 Total Foreign Investments 655, ,907 Total Investments 655, ,907 Other Assets and Liabilities 0.2% 1,124 Net Assets 713,031 Open forward currency contracts held by the Fund as at December 31, 2012 are shown in Note 5. Portfolio Concentration (as a percentage of Net Assets) As at December 31, 2012 As at December 31, 2011 Portfolio by Category (%) (%) Foreign Investments Other Assets and Liabilities *The Global Ascent Ltd. is a Cayman Islands exempted company with the following portfolio concentration as a percentage of Net Assets. As at December 31, 2012 As at December 31, 2011 Portfolio by Category (%) (%) Asset-Backed Securities Certificate of Deposit Commercial Mortgage- Backed Securities Commercial Paper Corporate Debt Securities Global Equities-Long U.S. Government Agency Securities Repurchase Agreements Global Equities-Short (78.63) (74.94) Other Derivatives Assets Other Derivatives Liabilities 1 (11.40) (3.48) Other Assets and Liabilities Other Derivatives Assets and Other Derivatives Liabilities consist of contracts for differences, futures contracts, forward currency contracts, interest rate swap contracts, total return swap contracts, credit default swap contracts, variance swap contracts and options. The accompanying notes are an integral part of the financial statements. 248

249 BlackRock CDN Short Term Index Fund Statement of Net Assets As at December Assets Investments - at fair * (Note 2) $ 177,540,253 $ 51,897,513 Cash 380,981 13,075 Interest receivable 105,288 30,590 Accounts receivable from issue of units 576,271 92, ,602,793 52,033,508 Liabilities Operating expenses payable 16,422 15,158 Payables for redemption of units 147, , , ,207 Net Assets $ 178,438,866 $ 51,838,301 Net Assets per Class Class A $ 147,731,952 $ 19,079,177 Class D 30,706,914 32,759,124 $ 178,438,866 $ 51,838,301 Number of Units Issued and Outstanding (Note 8) Class A 9,348,822 1,219,628 Class D 2,316,105 2,495,982 Net Assets per Unit Class A $ $ Class D $ $ Investments at Cost* $ 177,376,417 $ 51,888,454 *Includes short-term investments Approved by BlackRock Asset Management Canada Limited, Manager of the Funds Eric Léveillé, Director Noel Archard, Director The accompanying notes are an integral part of the financial statements. 249

250 BlackRock CDN Short Term Index Fund Statement of Operations For the Years Ended December Revenue Interest income $ 828,796 $ 495, , ,628 Expenses Custodian fees 3,032 1,124 Fund accounting expenses 44,842 41,585 Unitholder communication s Audit fees 10,898 11,332 Securities filing fees 1, Independent review committee fees Other operating expenses 1,555 2,446 62,314 57,900 Net Investment Income for the Year 766, ,728 Gain on Investments Net change in unrealized appreciation in of investments 44, Net Gain on Investments 44, Increase in Net Assets from Operations $ 811,298 $ 438,387 Increase in Net Assets from Operations per Class Class A $ 487,406 $ 103,422 Class D 323, ,965 $ 811,298 $ 438,387 Increase in Net Assets from Operations per Unit Class A $ 0.15 $ 0.15 Class D $ 0.13 $ 0.13 The accompanying notes are an integral part of the financial statements. 250

251 BlackRock CDN Short Term Index Fund Statement of Changes in Net Assets For the Years Ended December Fund Class A Class D Net Assets - Beginning of Year $ 51,838,301 $ 39,481,320 $ 19,079,177 $ 7,110,196 $ 32,759,124 $ 32,371,124 Increase in Net Assets from Operations 811, , , , , ,965 Capital Transactions Proceeds from issue of units 207,831,065 38,644, ,190,895 17,999,832 13,640,170 20,645,056 Reinvestment of distributions 776, , , , , ,579 Redemption of units (82,041,798) (26,726,294) (66,025,526) (6,134,273) (16,016,272) (20,592,021) Net capital transactions 126,565,440 12,356, ,732,654 11,993,533 (2,167,214) 362,614 Distributions From net investment income (776,173) (437,553) (567,285) (127,974) (208,888) (309,579) Total distributions (776,173) (437,553) (567,285) (127,974) (208,888) (309,579) Increase (Decrease) in Net Assets for the Year 126,600,565 12,356, ,652,775 11,968,981 (2,052,210) 388,000 Net Assets - End of Year $178,438,866 $ 51,838,301 $ 147,731,952 $19,079,177 $ 30,706,914 $ 32,759,124 The accompanying notes are an integral part of the financial statements. 251

252 BlackRock CDN Short Term Index Fund Par (in 000s) Short Term Investments Fixed Income Equivalents Provincial 12.4% Province of Alberta 0.99% February 04, ,000 6,983 6,993 Province of Brit 1.02% February 06, ,990 6,975 6,983 Province of Saskatchewan 1.00% January 03, ,000 4,994 5, % January 04, ,150 3,146 3,150 22,098 22,126 Total Fixed Income Equivalents 22,098 22,126 Federal Non-Agency Government Guaranteed 63.6% Canadian Treasury Bill 0.95% January 14, ,300 13,292 13, % January 31, ,000 17,954 17, % February 14, ,200 18,152 18, % February 28, ,550 17,503 17, % March 14, ,800 17,742 17, % March 28, ,200 18,136 18,161 CPPIB Capital, Inc. 1.05% January 03, ,500 3,493 3,500 Ontario Infrastructure & Lands Corp. 1.07% February 01, ,500 3,494 3,497 PSP Capital Inc. 1.06% February 01, ,500 3,495 3, , ,403 Par (in 000s) Fixed Income Investments Government Federal Non-Agency 10.1% Government of Canada 1.75% March 01, ,000 18,040 18,022 18,040 18,022 Total Government 18,040 18,022 Total Fixed Income Investments 18,040 18,022 Total Investments 177, ,540 Other Assets and Liabilities 0.5% 899 Net Assets 178,439 Portfolio Concentration (as a percentage of Net Assets) As at December 31, 2012 As at December 31, 2011 Portfolio by Category (%) (%) Provincial Government Guaranteed Commercial Paper Corporate Federal Non-Agency Other Assets and Liabilities 0.5 (0.1) Commercial Paper 13.4% Bank du Montreal 1.07% January 14, ,700 3,697 3,699 Bank of Nova Scotia 1.12% January 10, ,400 3,397 3,399 CIBC 1.09% January 08, ,500 3,497 3,499 OMERS Finance Trust 1.11% January 02, ,500 3,498 3,500 Financiere CDP, Inc. 1.04% February 15, ,000 2,994 2,996 Royal Bank du Canada 1.08% January 16, ,500 3,497 3,498 Toronto Dominion Bank 1.08% January 22, ,400 3,397 3,398 23,977 23,989 Total Federal Non-Agency 137, ,392 Total Short Term Investments 159, ,518 The accompanying notes are an integral part of the financial statements. 252

253 BlackRock CDN MSCI EAFE Equity Index Fund Statement of Net Assets As at December Assets Investments - at fair (Note 2) $ 2,844,715,579 $ 2,096,122,949 Cash 28,389,779 18,007,052 Margin due from brokers 5,308,728 3,262,562 Securities lending income receivable 60,778 24,214 Dividends receivable 3,495,458 4,102,011 Tax reclaim on dividends receivable 3,074,096 2,220,226 Accounts receivable from issue of units 21,034,888 25,474,784 Accounts receivable for investment sales 59,892 40,512 2,906,139,198 2,149,254,310 Liabilities Operating expenses payable 96,590 88,237 Payables for redemption of units 12,967,203 4,862,130 Payables for investment purchases 23,064,428 32,453,699 36,128,221 37,404,066 Net Assets $ 2,870,010,977 $ 2,111,850,244 Net Assets per Class Class A $ 1,200,166,548 $ 1,015,050,654 Class D 1,669,844,429 1,096,799,590 $ 2,870,010,977 $ 2,111,850,244 Number of Units Issued and Outstanding (Note 8) Class A 118,665, ,409,382 Class D 165,143, ,738,873 Net Assets per Unit Class A $ $ 8.80 Class D $ $ 8.79 Investments at Cost $ 2,902,018,066 $ 2,456,253,039 Approved by BlackRock Asset Management Canada Limited, Manager of the Funds Eric Léveillé, Director Noel Archard, Director The accompanying notes are an integral part of the financial statements. 253

254 BlackRock CDN MSCI EAFE Equity Index Fund Statement of Operations For the Years Ended December Revenue Dividend income $ 85,530,578 $ 75,415,858 Interest income 83,176 80,504 Securities lending income 1,648,637 1,555,018 Net gain (loss) from futures contracts 1,859,353 (2,462,438) Foreign exchange gain 103, ,424 Withholding taxes (4,295,625) (3,236,615) 84,929,307 71,762,751 Expenses Custodian fees 583, ,000 Fund accounting expenses 113, ,529 Unitholder communication s 1, Audit fees 23,750 25,400 Securities filing fees 42,420 (5,714) Independent review committee fees 1,006 2,277 Other operating expenses 34,542 52, , ,977 Net Investment Income for the Year 84,129,718 71,013,774 Gain (Loss) on Investments Net realized loss on sale of investments (31,249,365) (33,960,240) Transaction s (Note 2,13) (263,213) (415,239) Net change in unrealized appreciation (depreciation) in of investments 302,827,603 (244,804,260) Net Gain (Loss) on Investments 271,315,025 (279,179,739) Increase (Decrease) in Net Assets from Operations $ 355,444,743 $ (208,165,965) Increase (Decrease) in Net Assets from Operations per Class Class A $ 152,288,865 $ (96,949,470) Class D 203,155,878 (111,216,495) $ 355,444,743 $ (208,165,965) Increase (Decrease) in Net Assets from Operations per Unit Class A $ 1.25 $ (0.97) Class D $ 1.42 $ (0.96) The accompanying notes are an integral part of the financial statements. 254

255 BlackRock CDN MSCI EAFE Equity Index Fund Statement of Changes in Net Assets For the Years Ended December Fund Class A Class D Net Assets - Beginning of Year $2,111,850,244 $1,991,072,204 $1,015,050,654 $1,000,080,116 $1,096,799,590 $ 990,992,088 Increase (Decrease) in Net Assets from Operations 355,444,743 (208,165,965) 152,288,865 (96,949,470) 203,155,878 (111,216,495) Capital Transactions Proceeds from issue of units 974,418, ,648, ,829, ,052, ,588, ,596,140 Reinvestment of distributions 88,512,825 68,308,660 41,686,353 31,102,476 46,826,472 37,206,184 Redemption of units (571,702,086) (607,704,813) (424,002,503) (389,132,670) (147,699,583) (218,572,143) Net capital transactions 491,228, ,252,665 74,513, ,022, ,715, ,230,181 Distributions From net investment income (83,979,202) (68,308,660) (37,152,730) (31,102,476) (46,826,472) (37,206,184) From capital gains redemption in kind (Note 9) (4,533,623) - (4,533,623) Total distributions (88,512,825) (68,308,660) (41,686,353) (31,102,476) (46,826,472) (37,206,184) Increase in Net Assets for the Year 758,160, ,778, ,115,894 14,970, ,044, ,807,502 Net Assets - End of Year $2,870,010,977 $2,111,850,244 $1,200,166,548 $1,015,050,654 $1,669,844,429 $1,096,799,590 The accompanying notes are an integral part of the financial statements. 255

256 BlackRock CDN MSCI EAFE Equity Index Fund Common Stocks Consumer Discretionary 11.5% ABC-Mart, Inc. 7, Accor SA 38,478 1,876 1,346 Adidas AG 54,922 3,441 4,850 Aisin Seiki Co., Ltd. 49,700 1,539 1,524 Anheuser-Busch InBev 210,353 11,238 18,117 Asics Corp. 38, Axel Springer AG 9, Bayerische Motoren Werke AG 86,716 5,484 8,319 Bayerische Motoren Werke AG Preferred 13, Benesse Corp. 18, Bridgestone Corp. 169,100 3,449 4,325 British Sky Broadcasting PLC 280,683 2,979 3,480 Burberry Group PLC 115,384 1,625 2,290 Bureau Veritas SA 14,774 1,027 1,636 Casio Computer Co., Ltd. 55, Christian Dior 14,335 1,723 2,412 Cie Financiere Richemont SA 136,715 6,614 10,611 Compass Group PLC 490,351 3,935 5,754 Continental AG 28,807 2,484 3,307 Crown, Ltd. 107, ,183 Daihatsu Motor Co., Ltd. 51, ,004 DaimlerChrysler AG 237,583 13,249 12,904 Daito Trust Construction Co., Ltd. 18,700 1,262 1,751 Daiwa House Industry Co., Ltd. 135,000 1,700 2,295 DeNa Co., Ltd. 27, Denso Corp. 128,200 4,042 4,388 Dentsu, Inc. 47,800 1,273 1,269 Don Quijote Co., Ltd. 13, Echo Entertainment Group Ltd. 199, Fast Retailing Co., Ltd. 14,000 2,164 3,521 Fiat SpA 232,172 2,444 1,155 Flight Centre, Ltd. 13, Fuji Heavy Industries, Ltd. 153, ,892 FUJIFILM Corp. 122,000 3,627 2,419 G4S PLC 363,258 1,472 1,508 Galaxy Entertainment Group, Ltd. 556,000 1,525 2,164 GKN PLC 422,509 1,366 1,565 Groupe Aeroplan, Inc. 20,776 1,882 1,636 Hakuhodo DY, Inc. 6, Harvey Norman, Ltd. 130, Hennes & Mauritz AB-Class B 248,664 7,558 8,541 Honda Motor Co., Ltd. 426,900 14,485 15,461 Hugo Boss AG 6, Husqvarna AB 108, Inditex SA 57,139 4,080 7,876 Intercontinental Hotels Group PLC 72,139 1,419 1,992 Isetan Mitsukoshi, Ltd. 94,720 1, Consumer Discretionary (continued) Isuzu Motors, Ltd. 307,000 1,216 1,807 ITV PLC 956, ,629 Jardine Cycle & Carriage, Ltd. 28, ,114 JC Decaux SA 17, Jupiter Telecommunications Co Kabel Deutschland Holding AG 23,103 1,270 1,711 Kingfisher PLC 622,210 2,374 2,857 Koito Manufacturing Co., Ltd. 26, Lagardere S.C.A. 31,857 1,365 1,052 Li & Fung, Ltd. 1,544,000 3,172 2,713 Luxottica Group SpA 43,627 1,415 1,779 LVMH Moet Hennessy Louis Vuitton SA 66,556 8,746 12,123 Makita Corp. 29,500 1,025 1,347 Marks & Spencer Group PLC 417,431 2,631 2,583 Marui Co., Ltd. 57, Mazda Motor Corp. 725,000 1,508 1,444 McDonald s Co. 17, MGM China, Ltd. 230, Mitsubishi Motors Corp. 1,033,000 1,498 1,059 Namco Bandai, Inc. 44, Next PLC 43,744 1,521 2,623 NGK Spark Plug Co., Ltd. 50, NHK Spring Co., Ltd. 38, Nikon Corp. 89,000 2,038 2,588 Nissan Motor Co., Ltd. 648,800 5,835 6,059 Nitori Co., Ltd. 9, NOK Corp. 26, Nokian Renkaat OYJ 28, ,138 OPAP SA 59,791 1, Oriental Land Co., Ltd. 13,400 1,190 1,614 Panasonic Corp. 575,700 8,012 3,454 Pearson PLC 215,013 3,407 4,134 Peugeot SA 55,862 1, Pirelli & C SpA 59, Porsche AG Preferred 39,937 2,816 3,225 PPR SA 19,642 2,722 3,620 ProSiebenSat.1 Media AG 22, Publicis Groupe 46,605 2,140 2,765 Rakuten, Inc. 185,800 1,540 1,436 Reed Elsevier NV 179,345 2,437 2,625 Reed Elsevier PLC 320,534 3,001 3,325 Renault SA 50,094 3,061 2,675 Rinnai Corp. 8, Sands China, Ltd. 628,400 1,332 2,737 Sankyo Co., Ltd./Gunma 12, Sanrio Co., Ltd. 10, Sega Sammy, Inc. 53, Sekisui Chemical Co., Ltd. 116, The accompanying notes are an integral part of the financial statements. 256

257 BlackRock CDN MSCI EAFE Equity Index Fund Consumer Discretionary (continued) Sekisui House, Ltd. 142,000 1,431 1,539 Shangri-La Asia, Ltd. 419, Sharp Corp. 271,000 3, Shimamura Co., Ltd. 5, Shimano, Inc. 19, ,220 Singapore Press, Ltd. 312, ,025 SJM, Ltd. 496, ,143 Sky City Entertainment Group, Ltd. 150, Sodexho Alliance SA 24,942 1,643 2,085 Sony Corp. 265,600 7,811 2,927 Stanley Electric Co., Ltd. 35, Sumitomo Rubber Industries, Inc. 41, Suzuki Motor Corp. 95,300 2,228 2,460 Swatch Group AG 8,073 2,594 4,049 Swatch Group AG-Class B 11, ,003 Tabcorp, Ltd. 194,824 1, Takashimaya Co., Ltd. 71, Tatts Group, Ltd. 354, ,102 Toho Co., Ltd./Tokyo 31, Toyoda Gosei Co., Ltd. 15, Toyota Boshoku Corp. 15, Toyota Industries Corp. 42,900 1,318 1,347 Toyota Motor Corp. 722,400 30,748 33,276 TUI Travel PLC 117, USS Co., Ltd. 5, Vivendi SA 341,487 9,286 7,596 Volkswagen AG 7,695 1,376 1,647 Volkswagen AG Preferred 37,877 4,934 8,580 Whitbread PLC 47,366 1,240 1,871 Wolters Kluwer NV 77,826 1,633 1,581 WPP PLC 331,238 3,631 4,755 Wynn Macau, Ltd. 411, ,101 Yamada Denki Co., Ltd. 23,610 1, Yamaha Corp. 41, Yamaha Motor Co., Ltd. 74,500 1, Yamato Kogyo Co., Ltd. 10, Yue Yuen Industrial 198, , ,813 Consumer Staples 10.5% Aeon Co., Ltd. 160,100 2,133 1,816 Ajinomoto Co., Inc. 167,000 1,907 2,198 Aryzta AG 23,010 1,073 1,173 Asahi Breweries, Ltd. 101,100 1,980 2,139 Associated British Foods PLC 93,865 1,582 2,373 Barry Callebaut AG Beiersdorf AG 26,600 1,666 2,156 British American Tobacco PLC 508,989 19,798 25,699 Calbee, Inc. 3, Carlsberg A/S-Class B 27,806 2,293 2,708 Consumer Staples (continued) Carrefour SA 157,423 6,565 3,996 Casino Guichard Perrachon SA 14,394 1,283 1,362 Coca Cola Hellenic Bottling Co. SA 51,977 1,201 1,183 Coca-Cola Amatil, Ltd. 149,384 1,608 2,077 Coca-Cola West Japan Co., Ltd. 15, Colruyt SA 20, ,008 Danone 151,786 9,603 9,921 D.E Master Blenders ,953 1,788 1,781 Delhaize Group 27,454 1,844 1,090 Diageo PLC 656,435 13,099 18,975 Distribuidora Internacional de Alimentacion SA 165, ,044 Familymart Co., Ltd. 14, Golden Agri-Resources, Ltd. 1,793, Groupe Danone 98, Heineken Holding NV 26,347 1,160 1,430 Heineken NV 60,815 3,045 4,016 Henkel KGaA 33,948 1,600 2,302 Henkel KGaA Preferred 46,342 2,485 3,775 Imperial Tobacco Group PLC 260,433 9,092 9,994 J Front Retailing Co., Ltd. 128, J Sainsbury PLC 325,246 1,846 1,816 Japan Tobacco, Inc. 236,700 5,101 6,651 Jeronimo Martins SGPS SA 58, ,113 Kao Corp. 136,900 3,687 3,546 Kerry Group PLC-Class A 39,440 1,437 2,058 Kesko OYJ-Class B 17, Kikkoman Corp. 45, Kirin Co., Ltd. 230,000 3,219 2,680 Koninklijke Ahold NV 262,480 3,458 3,492 L Oreal SA 63,170 6,899 8,691 Lawson, Inc. 15, ,068 Lindt & Spruengli AG Lindt & Spruengli AG-PC Meiji Co., Ltd. 16, Metcash, Ltd. 234, Metro AG 35,005 1, Nestle SA 844,602 43,084 54,757 Nippon Meat Packers, Inc. 43, Nisshin Seifun Group, Inc. 52, Nissin Food Products Co., Ltd. 15, Olam International, Ltd. 420, Pernod-Ricard 55,809 5,084 6,386 Reckitt Benckiser Group PLC 170,457 8,940 10,693 Remy Cointreau SA 5, SABMiller PLC 250,565 7,765 11,442 Seven & I Co., Ltd. 196,520 5,584 5,515 Shiseido Co., Ltd. 94,300 1,791 1,320 Suedzucker AG 22, The accompanying notes are an integral part of the financial statements. 257

258 BlackRock CDN MSCI EAFE Equity Index Fund Consumer Staples (continued) Swedish Match AB 54,547 1,450 1,822 Tate & Lyle PLC 121,184 1,310 1,492 Tesco PLC 2,106,039 13,603 11,453 TNT Express NV 86, Toyo Suisan Kaisha, Ltd. 23, Treasury Wine Estates, Ltd. 176, Uni-Charm Corp. 29,200 1,075 1,510 Unilever NV 426,646 13,328 16,110 Unilever PLC 336,148 10,463 12,867 William Morrison Supermarkets 603,695 2,937 2,569 Wilmar International, Ltd. 500,000 2,119 1,357 Woolworths, Ltd. 322,757 8,192 9,782 Yakult Honsha Co., Ltd. 25, ,111 Yamazaki Baking Co., Ltd. 31, , ,087 Energy 7.4% Aker Solutions ASA 43, BG Group PLC 889,826 17,342 14,568 BP PLC 4,987,088 44,148 34,284 Caltex Australia, Ltd. 34, Cosmo Oil Company, Ltd. 137, ENI SpA 666,275 16,883 16,041 Fugro NV 18,155 1,134 1,057 Galp Energia SGPS SA-Class B 72,466 1,142 1,118 Idemitsu Kosan Co., Ltd. 5, Inpex, Inc ,730 3,037 Japan Petroleum Exploration Co. 7, JX, Inc. 585,330 3,580 3,249 Lundin Petroleum AB 57,697 1,455 1,319 Neste Oil OYJ 34, OMV AG 38,147 1,661 1,370 Origin Energy, Ltd. 283,976 3,776 3,411 Repsol SA 211, Repsol YPF SA 214,858 5,932 4,315 Royal Dutch Shell PLC-Class A 973,202 33,055 33,409 Royal Dutch Shell PLC-Class B 688,995 23,454 24,238 Saipem 69,009 2,833 2,654 Santos, Ltd. 249,153 3,277 2,859 SeaDrill, Ltd. 91,505 2,659 3,328 Showa Shell Sekiyu KK 44, Statoil ASA 292,295 7,529 7,269 Subsea 7 SA 75,156 1,808 1,776 Technip SA 26,878 2,294 3,061 Tenaris SA 123,071 2,169 2,516 TonenGeneral Sekiyu KK 71, Total SA 557,503 33,562 28,542 Transocean, Ltd. 93,855 5,726 4,118 Tullow Oil PLC 237,593 4,556 4,830 Whitehaven Coal, Ltd. 127, Energy (continued) Woodside Petroleum, Ltd. 171,803 6,851 6,017 WorleyParsons, Ltd. 53,019 1,340 1, , ,154 Financials 24.3% 3i Group PLC 254,686 1, Aberdeen Asset Management PLC 221, ,312 Acom Co., Ltd. 9, Admiral Group PLC 54,084 1,027 1,015 Aegon NV 459,277 3,591 2,891 Aeon Credit Service Co., Ltd. 17, Aeon Mall Co., Ltd. 19, Ageas 61,168 4,564 1,781 AIA Group, Ltd. 2,838,800 9,383 11,032 Allianz AG 119,246 15,564 16,374 AMP, Ltd. 752,261 3,940 3,740 Anglo Irish Bank Co. PLC 364,155 14,992 11,160 Aozora Bank, Ltd. 152, Ascendas REIT 504, Assicurazioni Generali SpA 305,817 7,347 5,512 ASX, Ltd. 45,341 1,433 1,462 Aviva PLC 767,516 5,602 4,632 AXA SA 463,053 10,154 8,109 Baloise Holding AG 12,591 1,103 1,072 Banca Monte dei Paschi di Siena SpA 1,732,163 1, Banco Bilbao Vizcaya Argentaria SA 1,427,097 16,965 12,932 Banco de Sabadell SA 727,158 2,752 1,876 Banco Espirito Santo SA 550,694 1, Banco Popolare Scarl 463,273 2, Banco Popular Espanol SA 1,365,685 2,756 1,045 Banco Santander Central Hispano SA 2,703,202 29,699 21,291 Bank Hapoalim BM 283,586 1,118 1,206 Bank Leumi Le-Israel BM 334,741 1,315 1,127 Bank of East Asia, Ltd. 350,520 1,369 1,337 Bank of Kyoto, Ltd. (The) 82, Bank of Yokohama, Ltd. 316,000 1,763 1,452 Bankia SA 251,360 1, Banque Cantonale Vaudoise Barclays PLC 3,044,949 15,426 12,915 Bendigo Bank, Ltd. 104, BGP PLC 1,121, BNP Paribas 262,689 17,968 14,656 BOC Hong Kong, Ltd. 977,500 2,504 3,020 British Land Co. PLC 218,771 2,024 1,990 CapitaCommercial Trust-REIT 546, Capitaland, Ltd. 681,305 1,853 2,055 CapitaMall Trust-REIT 629, ,093 Capitamalls Asia, Ltd. 352, The accompanying notes are an integral part of the financial statements. 258

259 BlackRock CDN MSCI EAFE Equity Index Fund Financials (continued) Centro Retail Australia REIT 348, CFS Retail Property Trust-REIT 524, ,039 Cheung Kong, Ltd. 363,000 4,859 5,526 Chiba Bank, Ltd. (The) 189,000 1,292 1,097 Chugoku Bank, Ltd. 47, Chuo Mitsui Trust, Inc. 811,460 3,023 2,803 City Developments, Ltd. 132,000 1,078 1,383 CNP Assurances 41, Commerzbank AG 1,007,361 5,234 1,898 Commonwealth Bank of Australia 416,998 19,678 26,804 Corio NV 17,756 1, Credit Agricole SA 264,149 4,077 2,109 Credit Saison Co., Ltd. 41, ,034 Credit Suisse Group 328,813 12,737 7,962 Criteria Caixacorp SA 204,803 1, Dai-ichi Life Insurance Co., Ltd. 2,211 3,287 3,053 Daiwa Securities Group, Inc. 441,000 2,522 2,402 Danske Bank A/S 170,453 3,829 2,867 DB RREEF Trust 478,000 4,999 5,774 Delta Lloyd 34, Deutsche Bank AG 243,443 14,663 10,536 Deutsche Boerse AG 50,331 3,434 3,044 Dexus Property Group 1,201,080 1,088 1,254 DNB Nor ASA 254,683 2,985 3,203 Erste Bank der Oesterreichischen Sparkassen AG 56,437 2,122 1,779 EXOR SpA 17, Federated Investors, Inc.-Class B 47,766 1,836 1,823 First Pacific Co., Ltd. 532, Fonciere des Regions REIT 7, Fukuoka Financial Group, Inc. 194, Gecina SA 5, Gjensidige Forsikring ASA 52, Global Logistic Properties, Ltd. 555, ,258 Goodman Group 448,884 1,506 2,005 GPT Group 376,281 1,355 1,428 Groupe Bruxelles Lambert SA 148,332 1,395 1,137 Gunma Bank, Ltd. 98, Hachijuni Bank (The), Ltd. 117, Hammerson PLC 184,200 1,783 1,455 Hang Lung Properties, Ltd. 585,000 2,108 2,311 Hang Seng Bank, Ltd. 202,100 3,097 3,079 Hannover Rueckversicherung AG 16, ,248 Hargreaves Lansdown PLC 59, Henderson Land Development Co., Ltd. 251,778 1,594 1,768 Hiroshima Bank (The), Ltd. 123, Hong Kong Exchanges and Clearing, Ltd. 286,000 4,618 4,842 HSBC PLC 4,795,828 51,214 50,205 Financials (continued) Hysan Development Co., Ltd. 162, ICADE 5, ICAP PLC 147,666 1, Immoeast AG 87, Immofinanz AG 251, ,048 Industrivarden AB 30, Infineon Technologies AG 286,812 1,990 2,314 ING Groep NV 1,006,711 12,577 9,320 Insurance Australia Group, Ltd. 540,847 1,980 2,622 Intesa Sanpaolo SpA 2,650,856 8,830 4,524 Intesa Sanpaolo SpA RNC 231, Investec PLC 145,131 1, Investor AB-Class B 118,306 2,431 3,076 Iyo Bank, Ltd. 64, Japan Prime Realty Investment Corp. REIT Japan Real Estate Investment Corp. REIT 159 1,485 1,551 Japan Retail Fund Investment Corp. REIT Joyo Bank, Ltd. (The) 173, Julius Baer Group, Ltd. 57,193 2,174 2,011 KBC Groep NV 61,879 2,685 2,115 Keppel Land, Ltd. 209, Kerry Properties, Ltd. 191, Kinnevik Investment AB 53,978 1,019 1,118 Klepierre 25, ,004 Land Securities Group PLC 202,463 2,702 2,664 Legal & General Group PLC 1,556,592 2,792 3,668 Lend Lease Corp., Ltd. 142,003 1,175 1,358 Liberty International PLC 141,835 1, Link REIT 595,000 1,799 2,962 Lloyds TSB Group PLC 11,053,997 40,907 8,572 London Stock Exchange Group PLC 47, Macquarie Group, Ltd. 84,626 3,172 3,100 Man Group PLC 11,104 1,046 1,176 Mapfre SA 205, Mediobanca SpA 137,521 1, Merck & Co., Inc. 16,895 1,771 2,210 Mirvac Group 885,109 1,255 1,354 Mitsubishi Estate Co., Ltd. 329,000 6,111 7,759 Mitsubishi UFJ Financial Group, Inc. 3,337,360 20,543 17,679 Mitsubishi UFJ Lease & Finance Co., Ltd. 15, Mitsui Fudosan Co., Ltd. 220,000 4,175 5,290 Mitsui Sumitomo Insurance Group, Inc. 132,374 3,384 2,593 Mizrahi Tefahot Bank, Ltd. 30, The accompanying notes are an integral part of the financial statements. 259

260 BlackRock CDN MSCI EAFE Equity Index Fund Financials (continued) Mizuho Financial Group, Inc. 5,991,820 13,423 10,764 Muenchener Rueckversicherungs AG 46,970 7,216 8,389 National Australia Bank, Ltd. 595,358 14,950 15,380 Natixis 243,655 1, New World Development, Ltd. 944,500 1,369 1,454 Nippon Building Fund, Inc. REIT 158 1,569 1,621 Nishi-Nippon City Bank, Ltd. (The) 164, NKSJ, Inc. 98,900 2,869 2,084 Nomura, Inc. 950,900 6,774 5,508 Nomura Real Estate, Inc. 26, Nomura Real Estate Office Fund, Inc. REIT Nordea Bank AB 685,884 6,807 6,519 NTT Urban Development Corp Old Mutual PLC 1,272,227 3,089 3,663 ORIX Corp. 27,150 2,975 3,026 Oversea-Chinese Banking Corp. 676,000 4,315 5,362 Pargesa Holding SA 6, Partners Group Holding AG 4, ,069 Petrofac, Ltd. 69,150 1,357 1,816 Pohjola Bank PLC 37, Prudential PLC 669,806 7,167 9,367 QBE Insurance Group, Ltd. 312,484 5,411 3,521 Raiffeisen International Bank Holding AG 13, Ratos AB 48, Resolution, Ltd. 357,878 1,145 1,432 Resona, Inc. 493,600 3,394 2,222 Royal Bank of Scotland Group PLC 555,558 9,480 2,917 Sampo OYJ 108,980 2,841 3,481 SBI, Inc. 61,600 1, Schroders PLC 29, SCOR SE 43,181 1,096 1,156 Segro PLC REIT 197,418 1, Seven Bank, Ltd. 130, Shinsei Bank, Ltd. 407, Shizuoka Bank, Ltd. (The) 140,000 1,417 1,356 Shoei Co. Ltd./Chiyoda-ku 70, Singapore Exchange, Ltd. 223,000 1,192 1,272 Sino Land Co. 763,200 1,303 1,359 Skandinaviska Enskilda Banken AB- Class A 367,707 2,721 3,109 Societe Generale-Class A 183,951 10,774 6,844 Sony Financial, Inc. 45, Standard Chartered PLC 626,624 15,915 15,943 Standard Life PLC 622,319 2,432 3,342 Stockland 569,392 2,111 2,078 Sumitomo Mitsui Financial Group, Inc. 351,800 14,431 12,579 Financials (continued) Sumitomo Realty & Development Co., Ltd. 93,000 1,994 3,049 Sun Hung Kai Properties, Ltd. 409,000 5,645 6,105 Suncorp-Metway, Ltd. 337,731 3,107 3,551 Suruga Bank, Ltd. 46, Svenska Handelsbanken-Class A 129,712 3,707 4,614 Swedbank AB 209,228 2,960 4,064 Swire Pacific, Ltd.-Class A 177,500 2,115 2,184 Swire Properties, Ltd. 315,800 1,036 1,047 Swiss Life Holding 7,737 1,167 1,021 Swiss Prime Site AG 14,406 1,187 1,196 Swiss Re, Ltd. 92,643 5,338 6,641 T&D, Inc. 149,100 2,290 1,784 Tokio Marine, Inc. 182,500 5,476 4,998 Tokyu Land Corp. 111, TrygVesta AS 6, UBS AG 953,716 18,335 14,804 Unibail 24,007 4,997 5,734 Unicredit SpA 1,061,987 11,774 5,164 Unione Di Banche Italiane SCPA 222,799 2,160 1,025 United Overseas Bank, Ltd. 333,679 4,549 5,388 UOL Group, Ltd. 119, Vienna Insurance Group 10, Westfield Group 562,440 6,446 6,134 Westfield Retail Trust-REIT 758,067 2,041 2,367 Westpac Banking Corp. 806,701 17,706 21,707 Wharf, Ltd. 394,500 2,087 3,051 Wheelock & Co., Ltd. 242, ,212 Wing Hang Bank, Ltd. 49, Yamaguchi Financial Group, Inc. 52, Zurich Financial Services AG 38,636 9,331 10, , ,186 Health Care 10.1% Actelion, Ltd. 28,652 1,417 1,357 Alfresa Corp. 10, Astellas Pharma, Inc. 116,100 4,836 5,174 AstraZeneca PLC 326,599 15,859 15,374 Bayer AG 216,584 15,261 20,442 Cangene Corp. 296,850 12,904 11,418 Celesio AG 20, Chugai Pharmaceutical Co., Ltd. 58,600 1,118 1,114 Cie Generale d Optique Essilor International SA 53,261 3,604 5,314 Cochlear, Ltd. 14, ,219 Coloplast A/S 29, ,441 CSL, Ltd., Australia 132,667 4,244 7,385 Daiichi Sankyo Co., Ltd. 174,281 3,797 2,651 Dainippon Sumitomo Pharma Co., Ltd. 43, The accompanying notes are an integral part of the financial statements. 260

261 BlackRock CDN MSCI EAFE Equity Index Fund Health Care (continued) Eisai Co., Ltd. 66,800 2,699 2,769 Elan Corp. PLC 129,837 1,483 1,297 Elekta AB 96,096 1,196 1,488 Fresenius Medical Care AG & Co. KGaA 55,597 3,340 3,814 Fresenius SE 32,337 2,801 3,704 Getinge AB 51,623 1,159 1,738 GlaxoSmithKline PLC 1,302,680 29,355 28,126 Grifols SA 38, ,296 Hisamitsu Pharmaceutical Co. 15, Kyowa Hakko Kogyo Co., Ltd. 65, Lonza Group AG 13,407 1, M3, Inc Miraca, Inc. 15, Mitsubishi Tanabe Pharma Corp. 60, Novartis AG Registered 602,458 34,056 37,649 Novo-Nordisk A/S-Class B 106,665 9,763 17,182 Olympus Corp. 57,200 1,545 1,097 ONO Pharmaceutical Co., Ltd. 21,500 1,137 1,088 Orion OYJ-Class B 25, Otsuka Co., Ltd. 96,200 2,705 2,692 Prothena Corp. PLC 3, Qiagen NV 61,699 1,212 1,110 Ramsay Health Care, Ltd. 35, Roche Holding AG Genusschein 184,007 31,269 36,829 RSA Insurance Group PLC 940,170 2,062 1,911 Sanofi-Aventis 312,343 23,985 29,206 Santen Pharmaceutical Co., Ltd. 19, Shionogi & Co., Ltd. 78,100 1,472 1,292 Shire, Ltd. 148,050 3,503 4,514 Smith & Nephew PLC 233,099 2,380 2,562 Sonic Healthcare, Ltd. 95,995 1,201 1,323 Sonova Holding AG 12,761 1,256 1,408 Suzuken Co., Ltd. 19, Sysmex Corp. 18, Taisho Pharmaceutical Co., Ltd. 9, Takeda Pharmaceutical Co., Ltd. 207,300 10,102 9,203 Terumo Corp. 39,100 1,962 1,533 Teva Pharmaceutical Industries, Ltd. 247,025 12,907 9,223 Tsumura & Co. 15, UCB SA 28,275 1,297 1,604 William Demant Holding 6, , ,160 Industrials 12.7% ABB, Ltd. 575,937 11,543 11,747 Abertis Infraestructuras SA 95,476 1,673 1,554 Acciona SA 6, ACS Actividades Cons y Serv 37,050 1, Industrials (continued) Adecco SA 35,315 1,848 1,845 Aeroports de Paris 7, Aggreko PLC 69,560 1,722 1,959 Airlines 59,811 1,004 1,120 Alfa Laval AB 86,379 1,288 1,789 All Nippon Airways Co., Ltd. 313, ALS, Ltd./Queensland 90, ,007 Alstom 54,380 3,188 2,149 Amada Co., Ltd. 97, Amadeus IT Holding SA 82,922 1,630 2,063 AMEC PLC 81,452 1,167 1,321 Andritz AG 19,229 1,059 1,226 Antofagasta PLC 103,215 1,703 2,208 AP Moller-Maersk A/S-Class A 146 1,199 1,029 AP Moller-Maersk A/S-Class B 344 2,838 2,578 Asahi Glass Co., Ltd. 260,000 2,616 1,868 Asciano Group 254,986 1,151 1,228 Assa Abloy AB-Class B 87,666 1,981 3,259 Atlantia SpA 86,007 1,678 1,543 Atlas Copco AB-Class A 176,630 3,177 4,820 Atlas Copco AB-Class B 101,986 1,683 2,468 Auckland International Airport, Ltd. 234, Aurizon, Ltd. 480,579 1,489 1,853 Babcock International Group PLC 92, ,450 BAE Systems PLC 854,024 5,163 4,657 Balfour Beatty PLC 184, Bouygues 49,226 2,283 1,442 Brambles Industries PLC 410,136 2,898 3,184 Brenntag AG 13,395 1,411 1,740 Bunzl PLC 85,266 1,082 1,391 Cathay Pacific Airways, Ltd. 329, Central Japan Railway Co. 37,600 3,225 3,022 Chiyoda Corp. 42, Cie de Saint-Gobain 104,329 5,164 4,401 Cie Generale de Geophysique- Veritas 40,426 1,325 1,199 Cie Generale des Etablissements Michelin 47,311 3,608 4,446 Cobham PLC 286,853 1,041 1,024 ComfortDelGro Corp., Ltd. 502, Dai Nippon Printing Co., Ltd. 151,000 1,866 1,170 Daikin Industries, Ltd. 60,500 2,082 2,050 Delek Group, Ltd. 1, Deutsche Post AG 236,255 4,719 5,137 DSV A/S 50, ,288 East Japan Railway Co. 88,700 6,105 5,689 Edenred 44, ,352 European Aeronautic Defense and Space Co. 109,022 2,984 4,208 Experian, Ltd. 265,512 3,194 4,209 The accompanying notes are an integral part of the financial statements. 261

262 BlackRock CDN MSCI EAFE Equity Index Fund Industrials (continued) Fanuc, Ltd. 50,100 6,242 9,179 Ferrovial SA 105,074 1,240 1,542 Fiat Industrial SpA 223,624 2,500 2,422 Finmeccanica SpA 105,343 1, Fraport AG 10, Fraser and Neave, Ltd. 245,745 1,038 1,939 Fuji Electric Co., Ltd. 158, Furukawa Electric Co., Ltd. (The) 178, GEA Group AG 45,166 1,226 1,451 Geberit AG 9,643 1,698 2,112 Genting International PLC 1,627,600 1,548 1,831 Hankyu, Inc. 295,000 1,489 1,512 Hexagon AB 61,487 1,141 1,535 Hino Motors, Ltd. 67, Hitachi Construction Machinery Co., Ltd. 27, Hitachi High-Technologies Corp. 16, Hochtief AG 8, Hopewell, Ltd. 148, Hutchison Port Trust-UNIT 1,374,000 1,163 1,074 Hutchison Whampoa, Ltd. 556,000 5,086 5,775 IHI Corp. 335, IMI PLC 84,552 1,195 1,496 Independent Tankers Corp., Ltd International Consolidated Airlines Group SA 248, Intertek Group PLC 42,087 1,311 2,108 Invensys PLC 212, ,118 Itochu Corp. 391,200 3,636 4,081 Japan Airlines Co., Ltd. 16, Japan Steel Works, Ltd. (The) 86, JGC Corp. 54,000 1,247 1,663 JS Group Corp. 68,700 1,384 1,517 JTEKT Corp. 57, Kajima Corp. 214, Kamigumi Co., Ltd. 64, Kawasaki Heavy Industries, Ltd. 379,000 1,122 1,013 Keihin Electric Express Railway Co., Ltd. 124,000 1,029 1,091 Keio Corp. 153,000 1,001 1,131 Keisei Electric Railway Co., Ltd. 74, Keppel Corp., Ltd. 373,900 2,531 3,350 Kinden Corp. 39, Kintetsu Corp. 418,000 1,586 1,699 Komatsu, Ltd. 244,200 5,633 6,136 Kone OYJ 41,210 1,886 3,019 Koninklijke Boskalis Westminster NV 20, Koninklijke Vopak NV 18, ,274 Kubota Corp. 290,000 2,570 3,289 Kuehne & Nagel International AG 13,893 1,445 1,662 Industrials (continued) Kurita Water Industries, Ltd. 30, Legrand SA 61,898 2,082 2,586 Leighton, Ltd. 38,477 1, Marubeni Corp. 437,000 2,767 3,080 Medipal Corp. 37, Meggitt PLC 202,127 1,233 1,250 Melrose Industries PLC 315,686 1,136 1,142 Metso OYJ 33,408 1,260 1,405 Mitsubishi Corp. 369,200 8,663 6,994 Mitsubishi Electric Corp. 503,000 4,464 4,223 Mitsubishi Heavy Industries, Ltd. 796,000 3,448 3,795 Mitsubishi Logistics Corp. 32, Mitsui & Co., Ltd. 457,600 7,304 6,756 Mitsui OSK Lines, Ltd. 292,000 1, MTR Corp. 374,000 1,263 1,463 Nabtesco Corp. 27, NGK Insulators, Ltd. 68,000 1, Nippon Express Co., Ltd. 230,000 1, Nippon Yusen KK 437,000 1,780 1,006 Noble Group, Ltd. 1,031,326 1, NSK, Ltd. 112, NWS, Ltd. 388, Obayashi Corp. 172, Odakyu Electric Railway Co., Ltd. 161,000 1,404 1,665 Orient Overseas International, Ltd. 58, Orkla ASA 198,613 1,861 1,720 Otsuka Corp. 3, Park24 Co., Ltd. 23, Qantas Airways, Ltd. 291, Randstad NV 31,903 1,287 1,158 Rexel SA 27, Rolls Royce PLC 491,757 4,786 6,944 Ryanair PLC 4, Ryanair PLC, Sponsored ADR 5, Safran SA 59,917 1,771 2,556 Sandvik AB 261,041 3,494 4,135 Scania AB-Class B 82,587 1,339 1,698 Schindler Holding AG 12,497 1,126 1,793 Schindler Holding AG-REG 5, Schneider Electric SA 137,647 8,028 9,898 Secom Co., Ltd. 54,400 2,648 2,713 Securitas AB-Class B 79, SembCorp Industries, Ltd. 258, ,107 SembCorp Marine, Ltd. 223, Serco Group PLC 129,884 1,081 1,125 SGS SA 1,426 2,200 3,143 Shimadzu Corp. 61, Shimizu Corp. 162, The accompanying notes are an integral part of the financial statements. 262

263 BlackRock CDN MSCI EAFE Equity Index Fund Industrials (continued) Siemens AG Registered 215,493 21,854 23,233 Singapore Airlines, Ltd. 141,671 1,419 1,240 Singapore Technologies Engineering, Ltd. 401, ,246 Skanska AB-Class B 97,861 1,594 1,589 SKF AB 102,408 2,002 2,556 SMC Corp./Japan 14,100 2,049 2,522 Smiths Group PLC 104,254 1,926 2,003 Societe BIC SA 7, Sojitz Corp. 344, Sulzer AG 6,494 1,031 1,018 Sumitomo Corp. 292,900 3,791 3,707 Sumitomo Electric Industries, Ltd. 197,300 2,554 2,243 Sumitomo Heavy Industries, Ltd. 139, Sydney Airport 55, Taisei Corp. 279, Thales SA 24,282 1, THK Co., Ltd. 30, Tobu Railway Co., Ltd. 264,000 1,373 1,383 Tokyu Corp. 294,000 1,500 1,639 Toll, Ltd. 172,021 1, Toppan Printing Co., Ltd. 141,000 1, Toto, Ltd. 69, Toyota Tsusho Corp. 55,600 1,047 1,354 Transurban Group 343,957 1,808 2,165 Ushio, Inc. 24, Vallourec 27,177 2,455 1,409 Vinci SA 120,391 6,391 5,671 Volvo AB-Class B 364,422 4,551 4,953 Wartsila OYJ-Class B 43,306 1,216 1,855 Weir Group PLC 56,695 1,614 1,720 Wendel SA 8, Wesfarmers, Ltd. 263,892 7,450 10,052 West Japan Railway Co. 45,300 1,872 1,774 Wolseley PLC 71,808 2,660 3,367 Yamato Co., Ltd. 96,800 1,509 1,457 Yangzijiang Shipbuilding 498, Zardoya Otis SA 41, Zodiac Aerospace 9, , ,113 Information Technology 4.0% Advantest Corp. 38, Annaly Capital Management, Inc. 107,015 1,361 - ARM PLC 364,035 2,268 4,516 ASM Pacific Technology 50, Asml Holding 82,886 4,866 5,215 Atos Origin 14, Brother Industries, Ltd. 64, Canon, Inc. 38,177 1,812 1,647 CapGemini SA 172,703 2,010 2,110 Information Technology (continued) Citizen Watch Co., Ltd. 73, Computershare, Ltd. 119,382 1,066 1,104 Dassault Systemes SA 16,351 1,170 1,808 Fujitsu, Ltd. 495,000 3,082 2,046 Gemalto 21,075 1,435 1,877 Gree, Inc. 22, Hamamatsu Photonics KK 18, Hirose Electric Co., Ltd. 8, Hitachi, Ltd. 1,220,000 6,229 7,081 Hoya Corp. 113,500 2,872 2,208 Ibiden Co., Ltd. 30,700 1, Itochu Techno-Science Corp. 6, Keyence Corp. 12,075 2,692 3,314 Konami Corp. 27, Konica Minolta, Inc. 120,500 1, Koninklijke (Royal) Philips Electronics NV 272,252 7,424 7,098 Kyocera Corp. 40,200 3,658 3,597 Mabuchi Motor Co., Ltd. 5, Mellanox Technologies, Ltd. 9,504 1, Millicom International Cellular SA, SDR 16,199 1,505 1,395 Murata Manufacturing Co., Ltd. 52,500 2,961 3,035 NEC Corp. 648,000 2,058 1,343 Nexon Co., Ltd. 27, NICE Systems, Ltd. 16, Nidec Corp. 27,900 2,295 1,606 Nintendo Co., Ltd. 28,000 7,052 2,941 Nippon Electric Glass Co., Ltd. 92,000 1, Nokia OYJ 975,498 12,457 3,747 Nomura Research Institute, Ltd. 28, NTT Data Corp ,196 1,036 Omron Corp. 53,600 1,178 1,267 Oracle Corp. Japan 9, Ricoh Co., Ltd. 164,000 2,214 1,711 Rohm Co., Ltd. 26,400 1, Sage Group PLC 320,728 1,354 1,528 SAP AG 241,284 13,467 19,248 Square Enix Co., Ltd. 15, STMicroelectronics NV 169,151 1,642 1,188 Sumco Corp. 33, TDK Corp. 32,500 1,903 1,162 Telefonaktiebolaget LM Ericsson- Class B 798,063 9,379 7,946 Tokyo Electron, Ltd. 45,600 2,620 2,064 Toshiba Corp. 1,055,000 5,338 4,082 Trend Micro, Inc. 26, Yahoo! Japan Corp. 3,767 1,472 1,207 Yaskawa Electric Corp. 59, Yokogawa Electric Corp. 54, , ,946 The accompanying notes are an integral part of the financial statements. 263

264 BlackRock CDN MSCI EAFE Equity Index Fund Materials 10.3% Air Liquide 81,832 8,624 10,205 Akzo Nobel NV 62,430 3,678 4,064 Alumina, Ltd. 654,601 1, Amcor, Ltd. 314,962 2,000 2,627 ArcelorMittal 243,725 8,705 4,127 Arkema SA 16,036 1,511 1,667 Asahi Kasei Corp. 335,000 1,927 1,956 Aurizon Mines, Ltd. 711,347 15,076 18,391 BASF SE 240,557 15,832 22,509 BHP Billiton PLC 553,168 16,725 19,066 BHP Billiton, Ltd. 844,519 29,720 32,389 Boliden AB 71, ,334 Boral, Ltd. 204, CRH PLC 188,795 4,542 3,775 Croda International PLC 35,244 1,264 1,355 Daicel Chemical Industries, Ltd. 82, Daido Steel Co., Ltd. 73, Denki Kagaku Kogyo KK 110, EMS-Chemie Holding AG 2, Eurasian Natural Resources 61, Evraz PLC 93, Fletcher Building, Ltd. 180,555 1,063 1,240 Fortescue Metals Group, Ltd. 362,211 1,722 1,734 Fresnillo PLC 46, ,392 GDF Suez 334,537 13,395 6,833 Givaudan 2,173 1,964 2,276 Glencore International PLC 995,184 6,400 5,654 Heidelbergcement AG 37,173 2,254 2,229 Hitachi Chemical Co., Ltd. 26, Hitachi Metals, Ltd. 40, Holcim, Ltd. 59,507 4,104 4,324 Iluka Resources, Ltd. 109,995 1,731 1,026 Imerys SA 8, Incitec Pivot, Ltd. 424,705 1,627 1,414 Israel Chemicals, Ltd. 115,168 1,399 1,371 Israel Corp., Ltd James Hardie Industries NV 116, ,095 JFE, Inc. 129,700 4,017 2,393 Johnson Matthey PLC 54,082 1,656 2,077 JSR Corp. 47, K+S AG 45,439 2,722 2,077 Kaneka Corp. 67, Kansai Paint Co., Ltd. 55, Kazakhmys PLC 56,594 1, Kobe Steel, Ltd. 669,000 1, Koninklijke DSM 40,305 1,967 2,417 Kuraray Co., Ltd. 90,900 1,157 1,177 Lafarge SA 49,457 3,407 3,126 Lanxess AG 22,127 1,583 1,925 Materials (continued) Linde AG 48,453 6,472 8,390 Maruichi Steel Tube, Ltd. 10, Mitsubishi Chemical Corp. 353,000 1,986 1,728 Mitsubishi Gas Chemical Co., Inc. 107, Mitsubishi Materials Corp. 295, Mitsui Chemicals, Inc. 235, Newcrest Mining, Ltd. 200,141 6,373 4,589 Nippon Paper Group, Inc. 27, Nippon Steel Corp. 1,997,340 7,342 4,830 Nitto Denko Corp. 43,500 1,907 2,109 Norsk Hydro ASA 245,403 2,035 1,218 Novozymes AS 64,999 1,550 1,821 Oji Paper Co., Ltd. 215,000 1, Olam International, Ltd. 131, Orica, Ltd. 95,020 2,199 2,462 OZ Minerals, Ltd. 79,343 1, Prysmian SpA 54, ,065 Randgold Resources, Ltd. 22,793 2,008 2,191 Rexam PLC 225,383 1,349 1,590 Rio Tinto PLC 351,083 19,451 19,948 Rio Tinto, Ltd. 114,300 7,579 7,799 Salzgitter AG 10, Shin-Etsu Chemical Co., Ltd. 108,100 6,071 6,511 Showa Denko KK 396, Sika AG 564 1,001 1,294 Sims Group, Ltd. 44, Solvay SA 15,672 1,806 2,250 Stora Enso OYJ-Class R 142,945 1, Sumitomo Chemical Co., Ltd. 392,000 1,914 1,210 Sumitomo Metal Mining Co., Ltd. 140,000 2,068 1,944 Svenska Cellulosa AB-Class B 152,906 2,276 3,300 Syngenta AG 24,390 6,760 9,726 Taiheiyo Cement Corp. 305, Taiyo Nippon Sanso Corp. 62, Teijin, Ltd. 254, ThyssenKrupp AG 101,002 3,352 2,362 Toray Industries, Inc. 384,000 2,453 2,326 Toyo Seikan Kaisha, Ltd. 41, Ube Industries, Ltd. 256, Umicore 29,379 1,158 1,608 UPM-Kymmene OYJ 135,368 2,033 1,564 Vedanta Resources PLC 26, Voestalpine AG 29,632 1,159 1,075 Xstrata PLC 552,499 9,402 9,452 Yara International ASA 48,782 2,119 2, , ,176 Telecommunication Services 4.7% Belgacom SA 39,792 1,473 1,157 Bezeq Israeli Telecommunication Corp., Ltd. 485,966 1, The accompanying notes are an integral part of the financial statements. 264

265 BlackRock CDN MSCI EAFE Equity Index Fund Telecommunication Services (continued) BT Group PLC 2,064,797 6,562 7,723 Deutsche Telekom AG 735,661 10,684 8,312 Elisa OYJ-Class A 35, Eurazeo 7, Eutelsat Communications 34,959 1,197 1,151 France Telecom SA 485,633 11,057 5,304 HKT Trust / HKT, Ltd. 625, Iliad SA 6, ,028 Inmarsat PLC 115,009 1,158 1,082 KDDI Corp. 70,400 4,474 4,929 Koninklijke KPN 269,555 3,644 1,314 Nippon Telegraph & Telephone Corp. 114,300 5,505 4,771 NTT DoCoMo, Inc. 3,987 6,792 5,693 PCCW, Ltd. 1,129, Portugal Telecom SGPS SA 167,955 1, SES 80,756 1,981 2,295 Singapore Telecommunications, Ltd. 2,082,572 5,023 5,602 Softbank Corp. 248,100 7,277 8,957 Starhub, Ltd. 169, Swisscom AG 6,074 2,358 2,602 TDC A/S 133,220 1, Tele2 AB-Class B 82,044 1,393 1,470 Telecom Corp. of New Zealand, Ltd. 476,241 1, Telecom Italia SpA 2,455,512 4,063 2,202 Telecom Italia SpA-RNC 1,561,321 2,095 1,225 Telefonica SA 1,072,755 23,356 14,223 Telekom Austria AG 61, Telenet Group Holding 14, Telenor ASA 183,424 2,783 3,676 TeliaSonera AB 563,045 3,991 3,797 Telstra Corp., Ltd. 1,140,624 3,885 5,153 United Internet AG 23, Vodafone Group PLC 12,879,032 34,611 32,184 Ziggo 32,324 1,008 1, , ,474 Utilities 3.6% AGL Energy, Ltd. 142,798 1,981 2,267 Air Water, Inc. 38, APA Group 220,939 1,186 1,258 Centrica PLC 1,361,036 6,652 7,349 Cheung Kong Infrastructure, Ltd. 132, Chubu Electric Power Co., Inc. 170,400 3,773 2,245 Chugoku Electric Power Co. 78,500 1,534 1,221 CLP, Ltd. 469,000 3,777 3,904 Contact Energy, Ltd. 88, Utilities (continued) E.ON AG 473,509 16,964 8,752 EDF SA 62,692 3,309 1,148 EDP-Energias de Portugal SA 495,217 1,909 1,483 Electric Power Development Co. 29, Electricite de France 62,006 1,296 1,617 Enagas 48,661 1,100 1,021 Enel Green Power SpA 446, Enel SpA 1,730,987 10,105 7,131 Fortum OYJ 116,253 3,153 2,158 Gas Natural SDG SA 89,996 1,685 1,589 Hokkaido Electric Power Co., Inc. 50, Hokuriku Electric Power Co. 45, Hong Kong & China Gas 1,364,317 2,674 3,689 Hongkong Electric, Ltd. 366,000 2,439 3,103 Iberdrola SA 1,039,525 8,542 5,622 Kansai Electric Power Co. (The), Inc. 194,400 4,105 2,024 Kyushu Electric Power Co., Inc. 113,200 2,172 1,280 National Grid PLC 952,810 9,756 10,834 Osaka Gas Co., Ltd. 496,000 1,939 1,788 Red Electrica de Espana 28,069 1,443 1,365 RWE AG 128,173 9,076 5,252 RWE AG Preferred 10, Scottish & Southern Energy PLC 246,760 5,310 5,659 Severn Trent PLC 63,801 1,492 1,625 Shikoku Electric Power Co. 42,000 1, Snam SpA 437,384 2,211 2,018 SP Ausnet 453, Suez Environnement SA 72,965 1, Terna SpA 342,959 1,322 1,361 Toho Gas Co., Ltd. 110, Tohoku Electric Power Co., Inc. 119,900 2,167 1,109 Tokyo Electric Power Co. (The), Inc. 391,500 7, Tokyo Gas Co., Ltd. 648,000 2,990 2,940 United Utilities Group PLC 180,122 2,038 1,961 Veolia Environnement SA 89,831 2,895 1,080 Verbund-Oesterreichische Elektrizitaetswirtschafts AG- Class A 19, , ,607 Total Common Stocks 2,902,817 2,844,716 Transaction Costs (Note 2) (799) Total Investments 2,902,018 2,844,716 Other Assets and Liabilities 0.9% 25,295 Net Assets 2,870,011 The accompanying notes are an integral part of the financial statements. 265

266 BlackRock CDN MSCI EAFE Equity Index Fund Portfolio Concentration (as a percentage of Net Assets) As at December 31, 2012 As at December 31, 2011 Portfolio by Category (%) (%) Consumer Discretionary Consumer Staples Energy Financials Health Care Industrials Information Technology Materials Telecommunication Services Utilities Other Assets and Liabilities Open futures contracts held by the Fund as at December 31, 2012 are shown in Note 4. The accompanying notes are an integral part of the financial statements. 266

267 BlackRock CDN MSCI EAFE Index Hedged Fund Statement of Net Assets As at December Assets Investments - at fair (Note 2) $ 191,584,556 $ 395,006,493 Cash 8,559 10,111 Net unrealized gain on forward currency contracts (Note 5) 2,529,407 28,858,651 Accounts receivable from issue of units 17,482,600 1,589, ,605, ,465,131 Liabilities Operating expenses payable 16,286 18,084 Payables for redemption of units 1,194, ,524 Payables for investment purchases 16,125,605 11,497,239 Net unrealized loss on forward currency contracts (Note 5) 2,744,481 17,469,591 20,080,667 29,531,438 Net Assets $ 191,524,455 $ 395,933,693 Number of Units Issued and Outstanding (Note 8) 17,384,198 42,310,162 Net Assets per Unit $ $ 9.36 Investments at Cost $ 195,155,167 $ 458,429,410 Approved by BlackRock Asset Management Canada Limited, Manager of the Funds Eric Léveillé, Director Noel Archard, Director The accompanying notes are an integral part of the financial statements. 267

268 BlackRock CDN MSCI EAFE Index Hedged Fund Statement of Operations For the Years Ended December Revenue Dividend income $ 4,963,215 $ 12,285,642 Interest income ,963,575 12,286,221 Expenses Custodian fees 2,885 2,488 Fund accounting expenses 11,649 13,303 Unitholder communication s Audit fees 13,882 14,539 Securities filing fees 3,548 5,530 Independent review committee fees Other operating expenses 1,097 2,225 33,185 39,082 Net Investment Income for the Year 4,930,390 12,247,139 Gain (Loss) on Investments Net realized loss on sale of investments (48,833,002) (4,031,077) Net realized gain (loss) from forward currency contracts 18,584,100 (15,701,806) Net change in unrealized appreciation (depreciation) in of investments 59,852,306 (45,106,137) Net change in unrealized appreciation (depreciation) in of forward currency contracts (11,604,134) 5,979,056 Net Gain (Loss) on Investments 17,999,270 (58,859,964) Increase (Decrease) in Net Assets from Operations $ 22,929,660 $ (46,612,825) Increase (Decrease) in Net Assets from Operations per Unit $ 0.88 $ (1.27) Statement of Changes in Net Assets For the Years Ended December Net Assets - Beginning of Year $ 395,933,693 $ 384,981,710 Increase (Decrease) in Net Assets from Operations 22,929,660 (46,612,825) Capital Transactions Proceeds from issue of units 54,582, ,361,273 Reinvestment of distributions 4,930,493 12,247,055 Redemption of units (281,921,136) (99,796,465) Net capital transactions (222,408,405) 69,811,863 Distributions From net investment income (4,930,493) (12,247,055) Total distributions (4,930,493) (12,247,055) Increase (Decrease) in Net Assets for the Year (204,409,238) 10,951,983 Net Assets - End of Year $ 191,524,455 $ 395,933,693 The accompanying notes are an integral part of the financial statements. 268

269 BlackRock CDN MSCI EAFE Index Hedged Fund Foreign Index Equivalents 100.0% BlackRock CDN MSCI EAFE Equity Index Class A 18,920, , ,585 Total Foreign Index Equivalents 195, ,585 Total Investments 195, ,585 Other Assets and Liabilities 0.0% (61) Net Assets 191,524 Portfolio Concentration (as a percentage of Net Assets) As at December 31, 2012 As at December 31, 2011 Portfolio by Category (%) (%) Foreign Index Equivalents Other Assets and Liabilities Open forward currency contracts held by the Fund as at December 31, 2012 are shown in Note 5. The accompanying notes are an integral part of the financial statements. 269

270 BlackRock CDN MSCI ACWI ex-canada Index Fund Statement of Net Assets As at December Assets Investments - at fair (Note 2) $ 369,997,565 $ 130,114,562 Cash 675, ,270 Dividends receivable 13,990 Accounts receivable from issue of units 21,563 4, ,708, ,379,320 Liabilities Operating expenses payable 12,216 11,421 Payables for redemption of units 137,920 70, ,136 81,519 Net Assets $ 370,558,121 $ 130,297,801 Number of Units Issued and Outstanding (Note 8) 39,683,201 15,930,393 Net Assets per Unit $ 9.34 $ 8.18 Investments at Cost $ 354,403,127 $ 139,507,448 Approved by BlackRock Asset Management Canada Limited, Manager of the Funds Eric Léveillé, Director Noel Archard, Director The accompanying notes are an integral part of the financial statements. 270

271 BlackRock CDN MSCI ACWI ex-canada Index Fund Statement of Operations For the Years Ended December Revenue Dividend income $ 6,247,337 $ 3,068,668 Interest income 2,401 1,812 Securities lending income - 1,553 Foreign exchange loss (2,361) (864) Withholding taxes (80,292) (51,649) 6,167,085 3,019,520 Expenses Custodian fees Fund accounting expenses 5,726 6,208 Unitholder communication s Audit fees 9,236 9,607 Securities filing fees 3,945 1,862 Independent review committee fees Other operating expenses 1,097 1,839 20,363 20,560 Net Investment Income for the Year 6,146,722 2,998,960 Gain (Loss) on Investments Net realized loss on sale of investments (186,049) (343,898) Transaction s (Note 2,13) (10,134) (3,969) Net change in unrealized appreciation (depreciation) in of investments 24,987,324 (7,356,001) Net Gain (Loss) on Investments 24,791,141 (7,703,868) Increase (Decrease) in Net Assets from Operations $ 30,937,863 $ (4,704,908) Increase (Decrease) in Net Assets from Operations per Unit $ 1.37 $ (0.33) Statement of Changes in Net Assets For the Years Ended December Net Assets - Beginning of Year $ 130,297,801 $ 115,356,227 Increase (Decrease) in Net Assets from Operations 30,937,863 (4,704,908) Capital Transactions Proceeds from issue of units 237,751,701 51,673,994 Reinvestment of distributions 6,146,498 2,998,938 Redemption of units (28,429,244) (32,027,512) Net capital transactions 215,468,955 22,645,420 Distributions From net investment income (6,146,498) (2,998,938) Total distributions (6,146,498) (2,998,938) Increase in Net Assets for the Year 240,260,320 14,941,574 Net Assets - End of Year $ 370,558,121 $ 130,297,801 The accompanying notes are an integral part of the financial statements. 271

272 BlackRock CDN MSCI ACWI ex-canada Index Fund Foreign Index Equivalents 99.8% BlackRock CDN MSCI EAFE Equity Index Class D 14,084, , ,588 BlackRock CDN US Equity Index Class D 20,432, , ,011 ishares MSCI Emerging Markets Index Fund 1,161,327 47,763 51,399 Total Foreign Index Equivalents 354, ,998 Transaction Costs (Note 2) (15) Total Investments 354, ,998 Other Assets and Liabilities 0.2% 560 Net Assets 370,558 Portfolio Concentration (as a percentage of Net Assets) As at December 31, 2012 As at December 31, 2011 Portfolio by Category (%) (%) Foreign Index Equivalents Other Assets and Liabilities The accompanying notes are an integral part of the financial statements. 272

273 BlackRock CDN MSCI Emerging Markets Index Fund Statement of Net Assets As at December Assets Investments - at fair (Note 2) $ 370,628,310 $ 265,712,543 Cash 1,431, ,061 Margin due from brokers 423,078 91,715 Dividends receivable 433, ,966 Tax reclaim on dividends receivable 18,427 7,221 Accounts receivable from issue of units 188,529 1,468, ,123, ,905,615 Liabilities Operating expenses payable 82,826 38,748 Payables for redemption of units 190,000 - Payables for investment purchases - 1,488, ,826 1,527,653 Net Assets $ 372,850,685 $ 266,377,962 Net Assets per Class Class A $ 372,850,685 $ 266,377,962 $ 372,850,685 $ 266,377,962 Number of Units Issued and Outstanding (Note 8) Class A 36,013,636 29,701,499 Net Assets per Unit Class A $ $ 8.97 Investments at Cost $ 365,319,727 $ 300,661,346 Approved by BlackRock Asset Management Canada Limited, Manager of the Funds Eric Léveillé, Director Noel Archard, Director The accompanying notes are an integral part of the financial statements. 273

274 BlackRock CDN MSCI Emerging Markets Index Fund Statement of Operations For the Years Ended December Revenue Dividend income $ 9,786,974 $ 6,478,627 Interest income (4,380) (23,728) Net gain (loss) from futures contracts 188,444 (214,532) Foreign exchange gain (loss) (14,476) 126,486 Withholding taxes (968,368) (501,506) 8,988,194 5,865,347 Expenses Custodian fees 570, ,567 Fund accounting expenses 74,076 63,311 Unitholder communication s 6,485 Audit fees 8,777 9,170 Securities filing fees 5,312 3,921 Independent review committee fees Other operating expenses 59,407 35, , ,714 Net Investment Income for the Year 8,269,823 5,324,633 Gain (Loss) on Investments Net realized loss on sale of investments (4,363,591) (5,360,677) Foreign tax (1,582) (189,244) Transaction s (Note 2,13) (57,356) (135,892) Net change in unrealized appreciation (depreciation) in of investments 40,257,386 (44,620,419) Net Gain (Loss) on Investments 35,834,857 (50,306,232) Increase (Decrease) in Net Assets from Operations $ 44,104,680 $ (44,981,599) Increase (Decrease) in Net Assets from Operations per Class Class A $ 44,104,680 $ (44,981,599) $ 44,104,680 $ (44,981,599) Increase (Decrease) in Net Assets from Operations per Unit Class A $ 1.37 $ (1.75) The accompanying notes are an integral part of the financial statements. 274

275 BlackRock CDN MSCI Emerging Markets Index Fund Statement of Changes in Net Assets For the Years Ended December Net Assets - Beginning of Year $ 266,377,962 $ 253,068,376 $ 266,377,962 $ 253,068,376 Increase (Decrease) in Net Assets from Operations 44,104,680 (44,981,599) 44,104,680 (44,981,599) Capital Transactions Proceeds from issue of units 62,738,043 61,227,077 62,738,043 61,227,077 Reinvestment of distributions 8,030,446 5,249,345 8,030,446 5,249,345 Redemption of units (370,000) (2,935,892) (370,000) (2,935,892) Net capital transactions 70,398,489 63,540,530 70,398,489 63,540,530 Distributions From net investment income (8,030,446) (5,249,345) (8,030,446) (5,249,345) Total distributions (8,030,446) (5,249,345) (8,030,446) (5,249,345) Increase in Net Assets for the Year 106,472,723 13,309, ,472,723 13,309,586 Net Assets - End of Year $ 372,850,685 $ 266,377,962 $ 372,850,685 $ 266,377,962 Fund Class A The accompanying notes are an integral part of the financial statements. 275

276 BlackRock CDN MSCI Emerging Markets Index Fund Common Stocks Consumer Discretionary 8.0% Anhanguera Educacional Participacoes SA 12, Anta Sports Products, Ltd. 88, Arcelik 22, Astra International Tbk PT 1,955,500 1,342 1,515 AviChina Industry & Technology Co., Ltd. 200, Bajaj Auto, Ltd. 8, BEC World PCL 81, BEC World PCL NVDR 15, Belle International, Ltd. 448, Berjaya Sports Toto Bhd. 64, Bosideng International, Ltd. 270, Brilliance China Automotive, Ltd. 240, BYD Co., Ltd. 49, Cheil Worldwide, Inc. 9, Cheng Shin Rubber Industry Co., Ltd. 177, China Motor Corp. 51, Cia Hering 13, Cyfrowy Polsat SA 18, Cyrela Brazil Realty SA Empreendimentos e Participacoes 28, Dah Chong Hong, Ltd. 79, Daphne International, Ltd. 88, Dongfeng Motor Group Co., Ltd. 264, E-Mart Co., Ltd. 2, El Puerto De Liverpool SAB de CV 17, Far Eastern Department Stores Co., Ltd. 92, Ford Otomotiv Sanayi 6, Formosa International Hotels Corp. 3, Formosa Taffeta Co., Ltd. 77, Foschini Group, Ltd. 19, Geely Automobile, Ltd. 375, Genting Bhd. 197, Genting Malaysia Bhd. 286, Giant Manufacturing Co., Ltd. 28, Global Mediacom Tbk PT 622, Golden Eagle Retail Group, Ltd. 68, GOME Electrical Appliances, Ltd. 960, Great Wall Motor Co., Ltd. 100, Grupo Televisa SA 248,600 1,066 1,301 Guangzhou Automobile Group Co., Ltd. 216, Haier Electronics Group Co., Ltd. 80, Hankook Tire Co., Ltd. 7, Hero Honda Motors, Ltd. 3, Consumer Discretionary (continued) Hotai Motor Co., Ltd. 24, Hyundai Department Store Co., Ltd. 1, Hyundai Mobis 6,581 1,638 1,760 Hyundai Motor Co. 14,892 2,400 3,026 Hyundai Motor Co. 2nd Preferred 3, Hyundai Motor Co. Preferred 2, Hyundai Wia Corp. 1, Imperial, Ltd. 17, Intime Department Store Group Co., Ltd. 97, Jollibee Foods Corp. 40, Kangwon Land, Inc. 9, Kia Motors Corp. 25,458 1,199 1,338 Kroton Educacional SA 7, LG Electronics, Inc. 10, Lojas Americanas SA 12, Lojas Americanas SA Preferred 39, Lojas Renner SA 11, Lotte Shopping Co., Ltd Mahindra & Mahindra, Ltd. 29, Mando Corp. 1, Maruti Suzuki India, Ltd. 3, Massmart, Ltd. 10, Media Nusantara Citra Tbk PT 392, Merida Industry Co., Ltd. 19, Mr Price Group, Ltd. 23, MRV Engenharia e Participacoes SA 30, Nan Kang Rubber Tire Co., Ltd. 56, Naspers, Ltd. 37,811 1,901 2,410 Neo Co., Ltd Parkson Bhd. 60, Parkson Retail Group, Ltd. 133, PDG Realty SA Empreendimentos e Participacoes 113, Pou Chen Corp. 215, Ruentex Industries, Ltd. 46, SACI Falabella 46, Steinhoff International, Ltd. 114, Tata Motors, Ltd. 73, Titan Industries, Ltd. 19, Tofas Turk Otomobil Fabrikasi 11, Truworths International, Ltd. 42, Turkiye Sise ve Cam Fabrikalari 45, UMW Bhd. 50, Woolworths, Ltd. 72, Woongjin Coway Co., Ltd. 5, Yulon Motor Co., Ltd. 84, Zee Entertainment Ent., Ltd. 45, Zhongsheng Group, Ltd. 57, ,592 29,834 The accompanying notes are an integral part of the financial statements. 276

277 BlackRock CDN MSCI Emerging Markets Index Fund Consumer Staples 8.7% Alliance Global Group, Inc. 407, Almacenes Exito SA 19, Amorepacific Corp Amorepacific Group Anadolu Efes Biracilik ve Malt Sanayii AS 20, Astra Agro Lestari Tbk PT 39, BIM Birlesik Magazalar 10, BRF-Brasil Foods SA 63,200 1,029 1,297 British American Tobacco Malaysia Bhd. 11, Centros Comerciales Sudamericanos SA 96, Charoen Pokphand Foods PCL 210, Charoen Pokphand Foods PCL NVDR 88, Charoen Pokphand Indonesia Tbk PT 713, China Agri-Industries, Ltd. 197, China Foods, Ltd. 78, China Mengniu Dairy Co., Ltd. 120, China Resources Ent., Ltd. 118, Cia Brasileira de Distribuicao Grupo Pao de Acucar 9, Cia Cervecerias Unidas SA 10, Cia de Bebidas das Americas 13, Cia de Bebidas das Americas Preferred 72,758 2,133 3,028 CJ CheilJedang Corp Coca-Cola Femsa SAB de CV 41, Coca-Cola Icecek 6, Controladora Comercial Mexicana SAB de CV-UNIT 36, Cosan SA Industria e Comercio 11, CP ALL PCL 280, CP ALL PCL NVDR 144, Dabur India, Ltd. 38, Embotelladora Andina SA 17, Embotelladoras Arca SAB de CV 31, Eurocash SA 6, Felda Global Ventures Bhd. 108, Fomento Economico Mexicano SAB de CV-UNIT 187,800 1,174 1,862 Genting Plantations Bhd. 20, Godrej Consumer Products, Ltd. 11, Grupo Bimbo SAB de CV 159, Grupo Modelo SAB de CV 61, Gudang Garam Tbk PT 46, Hengan International Group Co., Ltd. 71, Hindustan Unilever, Ltd. 83, Hypermarcas SA 33, Consumer Staples (continued) Indofood Sukses Makmur Tbk PT 426, IOI Corp. Bhd. 310, ITC, Ltd. 211, ,106 JBS SA 38, Kernel Holding SA 5, Kimberly-Clark de Mexico SAB de CV-Class A 150, KT&G Corp. 10, Kuala Lumpur Kepong Bhd. 46, LG Household & Health Care, Ltd Lotte Confectionery Co., Ltd Magnit OJSC GDR 25, ,003 Natura Cosmeticos SA 16, Orion Corp Pick n Pay Stores, Ltd. 23, PPB Group Bhd. 45, President Chain Store Corp. 56, Raia Drogasil SA 19, San Miguel Corp. 44, Shinsegae Co., Ltd Shoprite, Ltd. 41, Siam Makro PCL 9, Souza Cruz SA 37, Spar Group, Ltd. 16, Standard Foods Corp. 23, Sun Art Retail Group, Ltd. 230, Tiger Brands, Ltd. 15, Tingyi Cayman Islands Holding Corp. 188, Tsingtao Brewery Co., Ltd. 28, Uni-President China, Ltd. 105, Uni-President Enterprises Corp. 399, Unilever Indonesia Tbk PT 147, United Breweries, Ltd. 6, United Spirits, Ltd. 8, Universal Robina Corp. 84, Vina Concha y Toro SA 39, Wal-Mart de Mexico SAB de CV 514,200 1,375 1,663 Want Want China, Ltd. 575, Wumart Stores, Inc. 49, ,843 32,362 Energy 12.3% Adaro Energy Tbk PT 1,391, AK Transneft OAO Banpu PCL 2, Banpu PCL NVDR 8, Bharat Heavy Electricals, Ltd. 56, Bharat Petroleum Corp., Ltd. 16, Bumi Armada Bhd. 114, The accompanying notes are an integral part of the financial statements. 277

278 BlackRock CDN MSCI Emerging Markets Index Fund Energy (continued) Bumi Resources Tbk PT 1,370, Cairn India, Ltd. 46, China Coal Energy Co., Ltd. 396, China Oilfield Services, Ltd. 152, China Petroleum & Chemical Corp. 1,620,000 1,502 1,827 China Shenhua Energy Co., Ltd. 328,500 1,387 1,429 CNOOC, Ltd. 1,725,000 3,512 3,718 Coal India, Ltd. 48, Ecopetrol SA 476,603 1,102 1,450 Formosa Petrochemical Corp. 110, Gazprom OAO 1,028,866 5,713 4,819 Glow Energy PCL 45, Grupa Lotos SA 6, GS 4, Indo Tambangraya Megah PT 39, Inner Mongolia Yitai Coal Co. 57, IRPC PCL 924, IRPC PCL NVDR 65, Kunlun Energy Co., Ltd. 310, Lukoil OAO 49,290 2,855 3,214 MOL Hungarian Oil and Gas PLC 4, NovaTek OAO 8, ,041 OGX Petroleo e Gas Participacoes SA 125,100 1, Oil & Natural Gas Corp., Ltd. 74, PetroChina Co., Ltd. 2,038,000 2,523 2,864 Petroleo Brasileiro SA 287,600 4,561 2,729 Petroleo Brasileiro SA Preferred 405,700 5,816 3,849 Petronas Dagangan Bhd. 23, Polski Koncern Naftowy Orlen 30, Polskie Gornictwo Naftowe i Gazownictwo SA 171, PTT Exploration & Production PCL 103, PTT Exploration & Production PCL NVDR 31, PTT PCL 66, PTT PCL NVDR 16, Reliance Industries, Ltd. 125,247 2,435 1,905 Rosneft Oil Co. 122, ,082 S-Oil Corp. 4, Sapurakencana Petroleum Bhd. 221, Sasol, Ltd. 52,950 2,392 2,253 SK Energy Co., Ltd. 5, Surgutneftegas OJSC 691, Surgutneftegas OJSC Preferred 670, Tambang Batubara Bukit Asam Tbk PT 81, Tatneft 136, Thai Oil PCL 61, Thai Oil PCL NVDR 18, Energy (continued) TMK OAO 5, Tupras Turkiye Petrol Rafinerileri 12, Ultrapar Participacoes SA 31, Yanzhou Coal Mining Co., Ltd. 190, ,830 45,786 Financials 26.3% ABSA Group, Ltd. 25, African Bank Investments, Ltd. 69, Agile Property, Ltd. 138, Agricultural Bank of China, Ltd. 2,078,000 1,011 1,025 Akbank TAS 173, Alliance Financial Group Bhd. 95, AMMB Bhd. 160, Asya Katilim Bankasi 48, Attijariwafa Bank 2, Axis Bank, Ltd. 22, Ayala Corp. 17, Ayala Land, Inc. 531, Banco Bradesco SA 55, Banco Bradesco SA Preferred 184,641 3,470 3,158 Banco Davivienda SA 7, Banco de Chile 1,789, Banco de Credito e Inversiones 3, Banco do Brasil SA 55, Banco do Estado do Rio Grande do Sul 17, Banco Santander Brasil SA-UNIT 73, Banco Santander Chile 6,370, BanColombia SA 22, BanColombia SA Preferred 31, Bangkok Bank PCL 81, Bangkok Bank PCL NVDR 53, Bank Central Asia Tbk PT 1,179, ,102 Bank Danamon Indonesia Tbk PT 320, Bank Handlowy w Warszawie SA 3, Bank Mandiri Tbk PT 902, Bank Millennium SA 39, Bank Negara Indonesia Persero Tbk PT 713, Bank of Ayudhya PCL 142, Bank of Ayudhya PCL NVDR 92, Bank of Baroda 7, Bank of China, Ltd. 7,268,700 3,448 3,240 Bank of Communications Co., Ltd. 676, Bank of India 11, Bank of the Philippine Islands 67, Bank Pekao SA 11, Bank Rakyat Indonesia Persero Tbk PT 1,062, The accompanying notes are an integral part of the financial statements. 278

279 BlackRock CDN MSCI Emerging Markets Index Fund Financials (continued) BDO Unibank, Inc. 138, BM&FBOVESPA SA 172,200 1,277 1,172 BR Malls Participacoes SA 39, BR Properties SA 18, BRE Bank SA 1, BS Financial Group, Inc. 16, Canara Bank 8, Capital Securities Corp. 155, Cathay Financial Holding Co., Ltd. 683, Central Pattana PCL 64, CETIP SA-Balcao Organizado de Ativos e Derivativos 19, Chailease Holding Co., Ltd. 64, Chang Hwa Commercial Bank 423, China Citic Bank Corp., Ltd. 719, China Construction Bank Corp. 6,966,000 5,569 5,566 China Development Financial Holding Corp. 1,187, China Everbright, Ltd. 82, China Life Insurance Co., Ltd. 180, China Life Insurance Co., Ltd. H Shares 718,000 2,690 2,338 China Merchants Bank Co., Ltd. 377, China Minsheng Banking Corp., Ltd. 503, China Overseas Land & Investment, Ltd. 394, ,169 China Pacific Insurance Group Co., Ltd. 228, China Resources Land, Ltd. 196, China Taiping Insurance Co., Ltd. 83, China Vanke Co., Ltd. 125, Chinatrust Financial Holding Co., Ltd. 1,080, Chongqing Rural Commercial Bank 236, CIMB Group Bhd. 466,700 1,241 1,159 Citic Securities Co., Ltd. 103, Commercial International Bank Egypt SAE 54, Compartamos SAB de CV 103, Corp. Financiera Colombiana SA 7, Corpbanca 9,891, Country Garden Co. 445, Credicorp, Ltd. 6, Daewoo Securities Co., Ltd. 16, DGB Financial Group Inc. 11, Discovery, Ltd. 28, DLF, Ltd. 39, Dongbu Insurance Co., Ltd. 4, Douja Promotion Groupe Addoha SA 12, E.sun Financial Holding Co., Ltd. 370, Financials (continued) Egyptian Financial Group-Hermes Holding 32, Egyptian Kuwaiti Holding Co. 67, Emlak Konut Gayrimenkul Yatirim Ortakligi REIT 61, Evergrande Real Estate Group, Ltd. 514, Far East Horizon, Ltd. 127, Farglory Land Development Co., Ltd. 34, First Financial Holding Co., Ltd. 627, FirstRand, Ltd. 299, ,083 Franshion Properties China, Ltd. 310, Fubon Financial Holding Co., Ltd. 549, Growthpoint Properties, Ltd. UNIT 159, Grupo Aval Acciones y Valores 134, Grupo de Inversiones Suramericana SA 22, Grupo de Inversiones Suramericana SA Preferred 6, Grupo Financiero Banorte SAB de CV 179, ,149 Grupo Financiero Inbursa SA 193, Grupo Financiero Santander Mexico SAB de CV 144, Guangzhou R&F Properties Co., Ltd. 86, Haci Omer Sabanci Holding A.S. 78, Haitong Securities Co., Ltd. 84, Hana Financial Group, Inc. 18, HDFC Bank, Ltd. 147,922 1,518 1,835 Highwealth Construction Corp. 32, Hong Leong Bank Bhd. 54, Hong Leong Financial Group Bhd. 20, Housing Development Finance Corp. 141,206 2,055 2,125 Hua Nan Financial Co., Ltd. 499, Hyundai Marine & Fire Insurance Co., Ltd. 6, Hyundai Securities Co. 11, ICICI Bank, Ltd. 41, Industrial & Commercial Bank of China 6,286,000 4,593 4,441 Industrial Bank of Korea 15, Infrastructure Development Finance Co., Ltd. 102, Investec, Ltd. 22, Itau Unibanco Holding SA Preferred 220,400 4,718 3,579 Itausa-Investimentos Itau SA 244,797 1,557 1,154 Kasikornbank PCL 113, Kasikornbank PCL NVDR 67, KB Financial Group, Inc. 35,444 1,490 1,249 Komercni Banka 1, Korea Exchange Bank 25, The accompanying notes are an integral part of the financial statements. 279

280 BlackRock CDN MSCI Emerging Markets Index Fund Financials (continued) Korea Investment Co., Ltd. 3, Korea Life Insurance Co., Ltd. 16, Kotak Mahindra Bank, Ltd. 27, Krung Thai Bank PCL 274, Krung Thai Bank PCL NVDR 66, Liberty, Ltd. 11, LIC Housing Finance, Ltd. 29, Longfor Properties Co., Ltd. 131, LSR Group-GDR 20, Malayan Banking Bhd. 399,400 1,147 1,181 Mega Financial Holding Co., Ltd. 775, Metropolitan Bank & Trust 22, Mirae Asset Securities Co., Ltd. 2, MMI, Ltd. 98, Multiplan Empreendimentos Imobiliarios SA 7, National Societe Generale Bank SAE 10, Nedbank Group, Ltd. 19, OTP Bank PLC 21, PICC Property & Casualty Co., Ltd. 257, Ping An Insurance Group Co. of China, Ltd. 181,500 1,743 1,512 Poly Hong Kong Investments, Ltd. 191, Porto Seguro SA 11, Power Finance Corp., Ltd. 25, Powszechna Kasa Oszczednosci Bank Polski SA 72, Powszechny Zaklad Ubezpieczen SA 5, Public Bank Bhd. 102, Redefine Properties, Ltd. UNIT 267, Reliance Capital, Ltd. 9, Remgro, Ltd. 41, RHB Capital Bhd. 60, RMB, Ltd. 68, RMI 66, Ruentex Development Co., Ltd. 56, Rural Electrification Corp., Ltd. 28, Samsung Card Co. 4, Samsung Fire & Marine Insurance Co., Ltd. 3, Samsung Life Insurance Co., Ltd. 5, Samsung Securities Co., Ltd. 5, Sanlam, Ltd. 172, Sberbank of Russia 1,042,462 3,099 3,157 Sberbank of Russia Preferred 96, Shimao Property, Ltd. 135, Shin Kong Financial Holding Co., Ltd. 570, Financials (continued) Shinhan Financial Group Co., Ltd. 36,250 1,504 1,306 Shriram Transport Finance Co., Ltd. 11, Shui On Land, Ltd. 252, Siam Commercial Bank PCL 122, Siam Commercial Bank PCL NVDR 48, Sino-Ocean Land, Ltd. 274, Sinopac Financial Co., Ltd. 583, SM Prime, Inc. 671, Soho China, Ltd. 204, Standard Bank Group, Ltd. 115,383 1,675 1,608 State Bank of India 12, Sul America SA-UNIT 10, Taishin Financial Holding Co., Ltd. 635, Taiwan Business Bank 276, Taiwan Cooperative Financial Holding 479, Talaat Moustafa Group 96, Turkiye Garanti Bankasi 223,245 1,101 1,151 Turkiye Halk Bankasi 60, Turkiye Is Bankasi 152, Turkiye Vakiflar Bankasi Tao 72, UEM Land Bhd. 144, Unitech, Ltd. 127, VTB Bank OJSC 252,746, Woori Finance Co., Ltd. 35, Woori Investment & Securities Co., Ltd. 12, Yapi ve Kredi Bankasi 84, Yuanta Financial Holding Co., Ltd. 774, Yuexiu Property Co., Ltd. 492, ,208 98,062 Health Care 1.3% Amil Participacoes SA 12, Aspen Pharmacare, Ltd. 28, Bangkok Dusit Medical Services PCL 29, Celltrion, Inc. 11, Cipla, Ltd. 33, Diagnosticos da America SA 22, Divi s Laboratories, Ltd. 3, Dr Reddy s Laboratories, Ltd. 9, IHH Healthcare Bhd. 194, Kalbe Farma Tbk PT 2,174, Life Healthcare Group, Ltd. 90, Lupin, Ltd. 14, Netcare, Ltd. 82, The accompanying notes are an integral part of the financial statements. 280

281 BlackRock CDN MSCI Emerging Markets Index Fund Health Care (continued) Odontoprev SA 26, Piramal Healthcare, Ltd. 6, Qualicorp SA 13, Ranbaxy Laboratories, Ltd. 11, Scinopharm Taiwan, Ltd. 25, Shandong Weigao Group Medical Polymer Co., Ltd. 160, Shanghai Pharmaceuticals Holding Co., Ltd. 59, Sihuan Pharmaceutical Group, Ltd. 186, Sinopharm Group Co. 76, Sun Pharmaceutical Industries, Ltd. 30, Yuhan Corp ,280 4,722 Industrials 6.4% Aboitiz Equity Ventures, Inc. 186, Adani Enterprises, Ltd. 21, Aditya Birla Nuvo, Ltd. 3, Air China, Ltd. 174, AirAsia Bhd. 124, Airports of Thailand PCL 40, Airtac International Group 9, Alfa SAB de CV 274, All America Latina Logistica SA 44, Arteris SA 11, Aveng, Ltd. 39, Barloworld, Ltd. 21, Beijing Capital International Airport Co., Ltd. 180, Beijing Ent., Ltd. 50, Bidvest Group, Ltd. 28, China Airlines, Ltd. 242, China Communications Construction Co., Ltd. 427, China COSCO Co., Ltd. 250, China International Marine Containers Group Co., Ltd. 57, China Merchants International Co., Ltd. 108, China Railway Construction Corp., Ltd. 190, China Railway Group, Ltd. 386, China Shipping Container Lines Co., Ltd. 362, China Shipping Development Co., Ltd. 130, China Southern Airlines Co., Ltd. 182, China State Construction International, Ltd. 170, Industrials (continued) Cia de Concessoes Rodoviarias 85, Citic Pacific, Ltd. 127, CJ Corp. 1, COSCO Pacific, Ltd. 164, CSR Corp., Ltd. 190, CTCI Corp. 54, Daelim Industrial Co., Ltd. 2, Daewoo Engineering & Construction Co., Ltd. 9, Daewoo International Corp. 4, Daewoo Shipbuilding & Marine Engineering Co., Ltd. 9, DMCI, Inc. 80, Dongfang Electric Corp., Ltd. 33, Doosan Corp Doosan Heavy Industries and Construction Co., Ltd. 4, Doosan Infracore Co., Ltd. 9, EcoRodovias Infraestrutura e Logistica SA 16, Embraer SA 53, Empresas COPEC SA 43, Enka Insaat ve Sanayi 35, Eva Airways Corp. 160, Evergreen Marine Corp. Taiwan, Ltd. 164, Far Eastern New Century Corp. 292, Gamuda Bhd. 152, Glovis Co., Ltd. 1, Grupo Aeroportuario del Pacifico SAB de CV 29, Grupo Aeroportuario del Sureste SAB de CV 20, Grupo Carso SAB de CV 56, GS Engineering & Construction Corp. 3, Hiwin Technologies Corp. 16, Hyundai Development Co. 5, Hyundai Engineering & Construction Co., Ltd. 6, Hyundai Heavy Industries Co., Ltd. 4,039 1, Hyundai Merchant Marine Co., Ltd. 4, Hyundai Mipo Dockyard 1, IJM Corp. Bhd. 108, International Container Terminal Services, Inc. 74, Jaiprakash Associates, Ltd. 93, Jasa Marga Persero Tbk PT 197, Jiangsu Expressway Co., Ltd. 114, KCC Corp KOC Holding 61, Korea Aerospace Industries, Ltd. 3, The accompanying notes are an integral part of the financial statements. 281

282 BlackRock CDN MSCI Emerging Markets Index Fund Industrials (continued) Korean Air Lines Co., Ltd. 3, Lan Airlines SA 19, Larsen & Toubro, Ltd. 20, Latam Airlines Group SA 6, Latam Airlines Group SA RTS LG Corp. 9, Localiza Rent a Car SA 12, LS Corp. 1, LS Industrial Systems Co., Ltd. 1, Malaysia Airports Bhd. 51, Malaysia Marine and Heavy Engineering Bhd. 48, Marcopolo SA 19, MISC Bhd. 105, MMC Corp. 68, Multiplus SA 4, Mundra Port and Special Economic Zone, Ltd. 39, Orascom Construction Industries 9, Reunert, Ltd. 17, S1 Corp. 1, Samsung C&T Corp. 12, Samsung Engineering Co., Ltd. 2, Samsung Heavy Industries Co., Ltd. 15, Samsung Techwin Co., Ltd. 3, Shanghai Electric Group Co., Ltd. 272, Shanghai Industrial, Ltd. 51, Siemens India, Ltd. 6, Sime Darby Bhd. 261, SK Co., Ltd. 2, SK Networks Co., Ltd. 11, SM Investments Corp. 20, Taiwan Glass Industrial Corp. 91, TAV Havalimanlari Holding 16, Teco Electric And Machinery Co., Ltd. 175, Turk Hava Yollari 46, U-Ming Marine Transport Corp. 44, United Tractors Tbk PT 162, Walsin Lihwa Corp. 316, Wan Hai Lines, Ltd. 100, WEG SA 21, Weichai Power Co., Ltd. 47, Yang Ming Marine Transport Corp. 143, Zhejiang Expressway Co., Ltd. 136, Zhuzhou CSR Times Electric Co., Ltd. 44, Zoomlion Heavy Industry Science and Technology Co., Ltd. 133, ,221 23,962 Information Technology 13.7% Acer, Inc. 232, Advanced Semiconductor Engineering, Inc. 587, Advantech Co., Ltd. 27, Asseco Poland SA 6, Asustek Computer, Inc. 65, AU Optronics Corp. 726, Catcher Technology Co., Ltd. 56, Cheng Uei Precision Industry Co., Ltd. 37, Chicony Electronics Co., Ltd. 48, Chimei Innolux Corp. 527, Cielo SA 28, Clevo Co. 53, Compal Electronics, Inc. 405, Delta Electronics, Inc. 174, E Ink, Inc. 82, Epistar Corp. 79, Foxconn Technology Co., Ltd. 74, GCL Poly Energy, Ltd. 745, HCL Technologies, Ltd. 20, Hermes Microvision, Inc. 2, Hon Hai Precision Industry Co., Ltd. 971,600 2,492 2,958 HTC Corp. 70,000 1, Hynix Semiconductor, Inc. 50,290 1,014 1,204 Infosys Technologies, Ltd. 41,599 2,523 1,744 Inventec Corp. 237, Kingboard Chemical, Ltd. 58, Kinsus Interconnect Technology Corp. 28, Largan Precision Co., Ltd. 9, Lenovo Group, Ltd. 596, LG Display Co., Ltd. 22, LG Innotek Co., Ltd Lite-On Technology Corp. 198, Macronix International 329, Mediatek, Inc. 111,000 1,195 1,229 Mstar Semiconductor, Inc. 22, NCSoft Corp. 1, NHN Corp. 3, Novatek Microelectronics Corp. 50, Pegatron Corp. 151, Phison Electronics Corp. 13, Powertech Technology, Inc. 66, Quanta Computer, Inc. 241, Radiant Opto-Electronics Corp. 42, Realtek Semiconductor Corp. 42, Richtek Technology Corp. 14, Samsung Electro-Mechanics Co., Ltd. 5, The accompanying notes are an integral part of the financial statements. 282

283 BlackRock CDN MSCI Emerging Markets Index Fund Information Technology (continued) Samsung Electronics Co., Ltd. 10,668 8,289 15,091 Samsung Electronics Co., Ltd. Preferred 1,985 1,044 1,571 Samsung SDI Co., Ltd. 3, Satyam Computer Services, Ltd. 64, Siliconware Precision Industries Co. 286, Simplo Technology Co., Ltd. 28, SK C&C Co., Ltd. 2, Synnex Technology International Corp. 122, Taiwan Semiconductor Manufacturing Co., Ltd. 2,377,000 5,802 7,898 Tata Consultancy Services, Ltd. 45,361 1,104 1,041 Tencent, Ltd. 98,000 2,296 3,125 Totvs SA 11, TPK Holding Co., Ltd. 21, Transcend Information, Inc. 19, Tripod Technology Corp. 41, Unimicron Technology Corp. 120, United Microelectronics Corp. 1,189, Wintek Corp. 166, Wipro, Ltd. 47, Wistron Corp. 201, WPG, Ltd. 137, Zhen Ding Technology Holding, Ltd. 17, ZTE Corp. 59, ,697 51,127 Materials 11.7% ACC, Ltd. 4, African Rainbow Minerals, Ltd. 10, Alpek SAB de CV 39, Aluminum Corp. of China, Ltd. 382, Ambuja Cements, Ltd. 60, Angang Steel Co., Ltd. 110, Anglo Platinum, Ltd. 6, AngloGold Ashanti, Ltd. 36,977 1,656 1,135 Anhui Conch Cement Co., Ltd. 119, ArcelorMittal South Africa, Ltd. 17, Asia Cement Corp. 186, Asian Paints, Ltd. 2, Assore, Ltd. 3, BBMG Corp. 110, Bradespar SA 21, Braskem SA 14, CAP SA 7, Cementos Argos SA 38, Cemex SAB de CV UNIT 1,023, Cheil Industries, Inc. 4, China BlueChemical, Ltd. 174, Materials (continued) China National Building Material Co., Ltd. 278, China Petrochemical Development Corp. 153, China Resources Cement, Ltd. 184, China Shanshui Cement Group, Ltd. 172, China Steel Corp. 1,106,640 1,075 1,036 Cia de Minas Buenaventura SA-ADR 18, Cia Siderurgica Nacional SA 70, Duratex SA 24, Empresas CMPC SA 107, Eregli Demir ve Celik Fabrikalari TAS 90, Eternal Chemical Co., Ltd. 63, Exxaro Resources, Ltd. 12, Feng Hsin Iron & Steel Co. 39, Fibria Celulose SA 24, Formosa Chemicals & Fibre Corp. 302, Formosa Plastics Corp. 385,000 1,063 1,036 Fosun International, Ltd. 157, Fushan International Energy Group, Ltd. 298, Gerdau SA 83, Gold Fields, Ltd. 70,479 1, Grupo Argos SA 28, Grupo Argos SA Preferred 12, Grupo Mexico SAB de CV 369,498 1,160 1,321 Hanwha Chemical Corp. 8, Hanwha Corp. 4, Harmony Gold Mining Co., Ltd. 38, Hindalco Industries, Ltd. 101, Honam Petrochemical Corp. 1, Huabao International, Ltd. 202, Hyosung Corp. 2, Hyundai Hysco 3, Hyundai Steel Co. 5, Impala Platinum, Ltd. 51,873 1,288 1,010 Indocement Tunggal Prakarsa Tbk PT 142, Indorama Ventures PCL 134, Indorama Ventures PCL NVDR 10, Industrias CH Sab De Cv 16, Industrias Penoles SAB de CV 13, Jastrzebska Spolka Weglowa SA 3, Jiangxi Copper Co., Ltd. 135, Jindal Steel & Power, Ltd. 36, JSW Steel, Ltd. 7, KGHM Polska Miedz SA 13, Klabin SA 44, The accompanying notes are an integral part of the financial statements. 283

284 BlackRock CDN MSCI Emerging Markets Index Fund Materials (continued) Korea Kumho Petrochemical 1, Korea Zinc Co., Ltd Koza Altin Isletmeleri 3, Kumba Iron Ore, Ltd. 7, Lafarge Malayan Cement Bhd. 36, LCY Chemical Corp. 49, Lee & Man Paper Manufacturing, Ltd. 189, LG Chem, Ltd. 4,480 1,411 1,375 LG Chem, Ltd. Preferred Mechel-ADR 14, Metalurgica Gerdau SA 26, Mexichem SAB de CV 99, Minera Frisco SAB de CV 60, Minmetals Resources, Ltd. 164, MMC Norilsk Nickel 4, Nan Ya Plastics Corp. 455,000 1, Nine Dragons Paper, Ltd. 158, Northam Platinum, Ltd. 21, Novolipetsk Steel OJSC GDR 6, OCI Co., Ltd. 1, Oriental Union Chemical Corp. 54, Petronas Chemicals Group Bhd. 270, POSCO 6,315 2,561 2,047 PPC, Ltd. 48, PTT Global Chemical PCL 93, PTT Global Chemical PCL NVDR 67, Sappi, Ltd. 52, Semen Gresik Persero Tbk PT 286, Sesa Goa, Ltd. 33, Severstal OAO 16, Siam Cement PCL 29, Siam Cement PCL NVDR 12, Sinopec Shanghai Petrochemical Co., Ltd. 236, Sociedad Quimica y Minera de Chile SA 8, Southern Copper Corp. 16, Sterlite Industries India, Ltd. 129, Synthos SA 51, Taiwan Cement Corp. 303, Taiwan Fertilizer Co., Ltd. 71, Tata Steel, Ltd. 29, TSRC Corp. 53, Tung Ho Steel Enterprise Corp. 74, Ultratech Cement, Ltd. 3, Uralkali 127, Usinas Siderurgicas de Minas Gerais SA Preferred 36, Vale SA 126,400 3,549 2,598 Materials (continued) Vale SA Preferred 193,500 4,937 3,845 Yingde Gases 89, Zhaojin Mining Industry Co., Ltd. 82, Zijin Mining Group Co., Ltd. 590, ,145 43,844 Telecommunication Services 7.7% Advanced Info Service PCL 70, Advanced Info Service PCL NVDR 44, America Movil SAB de CV 3,762,600 4,932 4,296 Axiata Group Bhd. 246, Bharti Airtel, Ltd. 55, China Communications Services Corp., Ltd. 239, China Mobile, Ltd. 582,000 5,985 6,748 China Telecom Corp., Ltd. 1,340, China Unicom Hong Kong, Ltd. 454, Chunghwa Telecom Co., Ltd. 368,000 1,211 1,190 DiGi.Com Bhd. 300, ENTEL Chile SA 11, Far Eastone Telecommunications Co., Ltd. 154, Globe Telecom, Inc. 3, Idea Cellular, Ltd. 63, Indosat Tbk PT 134, KT Corp.-ADR 2, KT Corp. 1, LG Uplus Corp. 22, Magyar Telekom Telecommunications PLC 45, Maroc Telecom 8, Maxis Bhd. 217, Megafon OAO GDR 8, Mobile Telesystems OJSC ADR 49, MTN Group, Ltd. 163,849 2,969 3,407 Oi SA 22, Oi SA Preferred 80, Orascom Telecom Holding SAE 253, Philippine Long Distance Telephone Co. 4, Reliance Communications, Ltd. 50, Rostelecom OJSC 113, Sistema JSFC GDR 11, SK Telecom Co., Ltd SK Telecom Co., Ltd.-ADR 1, Taiwan Mobile Co., Ltd. 161, Telecom Egypt 34, Telefonica Brasil SA 28, Telefonica O2 Czech Republic 10, Telekom Malaysia Bhd. 104, The accompanying notes are an integral part of the financial statements. 284

285 BlackRock CDN MSCI Emerging Markets Index Fund Telecommunication Services (continued) Telekomunikacja Polska SA 70, Telekomunikasi Indonesia Tbk PT 974, Tim Participacoes SA 81, Turk Telekomunikasyon 50, Turkcell Iletisim Hizmet 74, Vodacom Group, Ltd. 35, XL Axiata Tbk PT 255, ,104 28,601 Utilities 3.3% Aboitiz Power Corp. 178, AES Gener SA 235, AES Tiete SA 9, Aguas Andinas SA 229, Centrais Eletricas Brasileiras SA 27, Centrais Eletricas Brasileiras SA Preferred 21, CEZ 15, China Gas, Ltd. 308, China Longyuan Power Group Corp. 207, China Resources Gas Group, Ltd. 84, China Resources Power Co., Ltd. 186, Cia de Saneamento Basico do Estado de Sao Paulo 10, Cia de Saneamento de Minas Gerais-COPASA 5, Cia Energetica de Minas Gerais 46, Cia Energetica de Sao Paulo 15, Cia Paranaense de Energia 9, Colbun SA 762, CPFL Energia SA 23, Datang International Power Generation Co., Ltd. 288, E.CL SA 52, EDP-Energias do Brasil SA 23, Eletropaulo Metropolitana Eletricidade de Sao Paulo SA 9, Empresa Nacional de Electricidad SA 316, Enea SA 10, Energy Development Corp. 714, Enersis SA 1,261, ENN Energy, Ltd. 74, Federal Grid Co. Unified Energy System JSC 30,185, Federal Hydrogenerating Co. JSC 12,414, GAIL India, Ltd. 36, Glow Energy PCL 4, Guangdong Investment, Ltd. 242, Huaneng Power International, Inc. 310, IDGC Holding JSC 1,794, Utilities (continued) Inter Rao Ues OAO 189,335, Interconexion Electrica SA 37, Isagen SA ESP 81, Korea Electric Power Corp. 24, Korea Gas Corp. 2, Light SA 6, MPX Energia SA 14, NTPC, Ltd. 55, Perusahaan Gas Negara PT 1,055, Petronas Gas Bhd. 57, PGE Polska Grupa Energetyczna SA 72, Power Grid Corp. of India, Ltd. 107, Reliance Infrastructure, Ltd. 10, Reliance Power, Ltd. 54, Tata Power Co., Ltd. 94, Tauron Polska Energia SA 101, Tenaga Nasional Bhd. 265, Tractebel Energia SA 15, YTL Corp. 466, YTL Power International Bhd. 221, ,681 12,328 Total Common Stocks 365, ,628 Transaction Costs (Note 2) (281) Total Investments 365, ,628 Other Assets and Liabilities 0.6% 2,223 Net Assets 372,851 Portfolio Concentration (as a percentage of Net Assets) As at December 31, 2012 As at December 31, 2011 Portfolio by Category (%) (%) Consumer Discretionary Consumer Staples Energy Financials Health Care Industrials Information Technology Materials Telecommunication Services Utilities Foreign Index Equivalents Other Assets and Liabilities Open futures contracts held by the Fund as at December 31, 2012 are shown in Note 4. The accompanying notes are an integral part of the financial statements. 285

286 BlackRock CDN MSCI EAFE Index Plus Fund Statement of Net Assets As at December Assets Investments - at fair (Note 2) $ 628,419,088 $ 549,597,041 Cash 4,379,416 6,895,530 Margin due from brokers 2,343, ,576 Securities lending income receivable 11,485 5,442 Dividends receivable 629,227 1,091,506 Tax reclaim on dividends receivable 662, ,313 Accounts receivable for investment sales 13,245 75, ,458, ,250,956 Liabilities Operating expenses payable 27,579 24,753 Payables for redemption of units 510,000 - Payables for investment purchases - 3,984, ,579 4,008,819 Net Assets $ 635,921,410 $ 555,242,137 Number of Units Issued and Outstanding (Note 8) 59,610,542 59,827,037 Net Assets per Unit $ $ 9.28 Investments at Cost $ 603,135,580 $ 593,484,150 Approved by BlackRock Asset Management Canada Limited, Manager of the Funds Eric Léveillé, Director Noel Archard, Director The accompanying notes are an integral part of the financial statements. 286

287 BlackRock CDN MSCI EAFE Index Plus Fund Statement of Operations For the Years Ended December Revenue Dividend income $ 20,179,274 $ 22,160,548 Interest income 13,746 19,433 Securities lending income 308, ,809 Net gain (loss) from futures contracts 1,144,656 (1,527,295) Foreign exchange gain (loss) (383,418) 252,446 Withholding taxes (1,097,867) (1,038,511) 20,164,841 20,154,430 Expenses Custodian fees 177, ,588 Fund accounting expenses 73,314 71,791 Unitholder communication s Audit fees 9,418 9,996 Securities filing fees 9,830 8,958 Independent review committee fees Other operating expenses 24,101 29, , ,296 Net Investment Income for the Year 19,870,346 19,883,134 Gain (Loss) on Investments Net realized loss on sale of investments (5,935,942) (1,631,252) Transaction s (Note 2,13) (89,428) (129,698) Net change in unrealized appreciation (depreciation) in of investments 69,170,617 (82,539,140) Net Gain (Loss) on Investments 63,145,247 (84,300,090) Increase (Decrease) in Net Assets from Operations $ 83,015,593 $ (64,416,956) Increase (Decrease) in Net Assets from Operations per Unit $ 1.40 $ (1.09) Statement of Changes in Net Assets For the Years Ended December Net Assets - Beginning of Year $ 555,242,137 $ 503,659,396 Increase (Decrease) in Net Assets from Operations 83,015,593 (64,416,956) Capital Transactions Proceeds from issue of units 19,174, ,999,697 Reinvestment of distributions 20,014,863 19,128,543 Redemption of units (21,510,363) - Net capital transactions 17,678, ,128,240 Distributions From net investment income (20,014,863) (19,121,539) From capital gains - (7,004) Total distributions (20,014,863) (19,128,543) Increase in Net Assets for the Year 80,679,273 51,582,741 Net Assets - End of Year $ 635,921,410 $ 555,242,137 The accompanying notes are an integral part of the financial statements. 287

288 BlackRock CDN MSCI EAFE Index Plus Fund Common Stocks Consumer Discretionary 11.6% ABC-Mart, Inc. 1, Accor SA 8, Adidas AG 12, ,062 Aegis Group PLC 156, Aisin Seiki Co., Ltd. 11, Anheuser-Busch InBev 46,379 2,524 3,995 Asics Corp. 8, Axel Springer AG 2, Bayerische Motoren Werke AG 19,065 1,097 1,829 Bayerische Motoren Werke AG Preferred 3, Benesse Corp. 3, Bridgestone Corp. 37, British Sky Broadcasting PLC 62, Burberry Group PLC 25, Bureau Veritas SA 3, Carnival Corp. 11, Casio Computer Co., Ltd. 13, Christian Dior 3, Cie Financiere Richemont SA 30,159 1,296 2,341 Compass Group PLC 108,884 1,004 1,278 Continental AG 3, Crown, Ltd. 22, Daihatsu Motor Co., Ltd. 11, DaimlerChrysler AG 52,361 2,983 2,844 Daito Trust Construction Co., Ltd. 4, Daiwa House Industry Co., Ltd. 29, DeNa Co., Ltd. 6, Denso Corp. 28, Dentsu, Inc. 10, Don Quijote Co., Ltd. 3, Echo Entertainment Group Ltd. 42, Fast Retailing Co., Ltd. 3, Fiat SpA 49, Flight Centre, Ltd. 3, Fuji Heavy Industries, Ltd. 34, FUJIFILM Corp. 26, G4S PLC 79, Galaxy Entertainment Group, Ltd. 121, GKN PLC 93, Groupe Aeroplan, Inc. 4, Hakuhodo DY, Inc. 1, Harvey Norman, Ltd. 27, Hennes & Mauritz AB-Class B 54,922 1,775 1,886 Honda Motor Co., Ltd. 94,100 3,281 3,408 Hugo Boss AG 1, Husqvarna AB 24, Consumer Discretionary (continued) Inditex SA 12, ,734 Intercontinental Hotels Group PLC 15, Isetan Mitsukoshi, Ltd. 21, Isuzu Motors, Ltd. 69, ITV PLC 210, Jardine Cycle & Carriage, Ltd. 6, JC Decaux SA 3, Jupiter Telecommunications Co Kabel Deutschland Holding AG 5, Kingfisher PLC 137, Koito Manufacturing Co., Ltd. 6, Lagardere S.C.A. 6, Li & Fung, Ltd. 336, Luxottica Group SpA 9, LVMH Moet Hennessy Louis Vuitton SA 14,669 1,895 2,672 Makita Corp. 6, Marks & Spencer Group PLC 93, Marui Co., Ltd. 13, Mazda Motor Corp. 145, McDonald s Co. 3, MGM China, Ltd. 54, Mitsubishi Motors Corp. 226, Namco Bandai, Inc. 11, Next PLC 14, NGK Spark Plug Co., Ltd. 10, NHK Spring Co., Ltd. 9, Nikon Corp. 19, Nissan Motor Co., Ltd. 143,200 1,222 1,337 Nitori Co., Ltd. 2, NOK Corp. 5, Nokian Renkaat OYJ 6, OPAP SA 12, Oriental Land Co., Ltd. 2, Panasonic Corp. 126,900 1, Pearson PLC 46, Peugeot SA 12, Pirelli & C SpA 13, Porsche AG Preferred 8, PPR SA 4, ProSiebenSat.1 Media AG 4, Publicis Groupe 10, Puma AG Rudolf Dassler Sport 1, Rakuten, Inc. 42, Reed Elsevier NV 39, Reed Elsevier PLC 69, Renault SA 11, Rinnai Corp. 1, Sands China, Ltd. 138, The accompanying notes are an integral part of the financial statements. 288

289 BlackRock CDN MSCI EAFE Index Plus Fund Consumer Discretionary (continued) Sankyo Co., Ltd./Gunma 3, Sanrio Co., Ltd. 2, Sega Sammy, Inc. 11, Sekisui Chemical Co., Ltd. 25, Sekisui House, Ltd. 31, Shangri-La Asia, Ltd. 89, Sharp Corp. 57, Shimamura Co., Ltd. 1, Shimano, Inc. 4, Singapore Press, Ltd. 83, SJM, Ltd. 110, Sky City Entertainment Group, Ltd. 33, Sodexho Alliance SA 5, Sony Corp. 57,800 1, Stanley Electric Co., Ltd. 8, Sumitomo Rubber Industries, Inc. 10, Suzuki Motor Corp. 21, Swatch Group AG 1, Swatch Group AG-Class B 2, Tabcorp, Ltd. 41, Takashimaya Co., Ltd. 15, Tatts Group, Ltd. 77, Toho Co., Ltd./Tokyo 6, Toyoda Gosei Co., Ltd. 3, Toyota Boshoku Corp. 3, Toyota Industries Corp. 9, Toyota Motor Corp. 158,700 6,219 7,310 TUI Travel PLC 27, USS Co., Ltd. 1, Vivendi SA 75,053 1,807 1,670 Volkswagen AG 1, Volkswagen AG Preferred 8,331 1,299 1,887 Whitbread PLC 10, Wolters Kluwer NV 17, WPP PLC 72, ,040 Wynn Macau, Ltd. 88, Yamada Denki Co., Ltd. 4, Yamaha Corp. 8, Yamaha Motor Co., Ltd. 15, Yamato Kogyo Co., Ltd. 2, Yue Yuen Industrial 41, ,052 73,904 Consumer Staples 10.5% Aeon Co., Ltd. 34, Ajinomoto Co., Inc. 37, Aryzta AG 4, Asahi Breweries, Ltd. 21, Associated British Foods PLC 20, Barry Callebaut AG Consumer Staples (continued) Beiersdorf AG 5, British American Tobacco PLC 112,250 4,029 5,667 Calbee, Inc Carlsberg A/S-Class B 6, Carrefour SA 34,718 1, Casino Guichard Perrachon SA 3, Coca Cola Hellenic Bottling Co. SA 11, Coca-Cola Amatil, Ltd. 32, Coca-Cola West Japan Co., Ltd. 3, Colruyt SA 4, Danone 33,407 1,974 2,184 D.E Master Blenders , Delhaize Group 5, Diageo PLC 144,742 2,737 4,184 Distribuidora Internacional de Alimentacion SA 34, Familymart Co., Ltd. 3, Golden Agri-Resources, Ltd. 402, Groupe Danone 19, Heineken Holding NV 5, Heineken NV 13, Henkel KGaA 7, Henkel KGaA Preferred 10, Imperial Tobacco Group PLC 65,553 2,118 2,516 J Front Retailing Co., Ltd. 27, J Sainsbury PLC 71, Japan Tobacco, Inc. 51, ,455 Jeronimo Martins SGPS SA 12, Kao Corp. 30, Kerry Group PLC-Class A 8, Kesko OYJ-Class B 3, Kikkoman Corp. 10, Kirin Co., Ltd. 50, Koninklijke Ahold NV 60, L Oreal SA 13,917 1,487 1,915 Lawson, Inc. 3, Lindt & Spruengli AG Lindt & Spruengli AG-PC Meiji Co., Ltd. 3, Metcash, Ltd. 49, Metro AG 7, Nestle SA 186,311 9,651 12,079 Nippon Meat Packers, Inc. 10, Nisshin Seifun Group, Inc. 10, Nissin Food Products Co., Ltd. 3, Olam International, Ltd. 93, Pernod-Ricard 12,214 1,082 1,397 Reckitt Benckiser Group PLC 37,610 1,980 2,359 Remy Cointreau SA 1, The accompanying notes are an integral part of the financial statements. 289

290 BlackRock CDN MSCI EAFE Index Plus Fund Consumer Staples (continued) SABMiller PLC 55,222 1,779 2,522 Seven & I Co., Ltd. 43,400 1,113 1,218 Shiseido Co., Ltd. 20, Suedzucker AG 4, Swedish Match AB 12, Tate & Lyle PLC 26, Tesco PLC 464,122 2,954 2,524 TNT Express NV 18, Toyo Suisan Kaisha, Ltd. 5, Treasury Wine Estates, Ltd. 37, Uni-Charm Corp. 6, Unilever NV 140,823 4,390 5,318 Unilever PLC 25, William Morrison Supermarkets 209, Wilmar International, Ltd. 109, Woolworths, Ltd. 71,118 1,790 2,156 Yakult Honsha Co., Ltd. 5, Yamazaki Baking Co., Ltd. 7, ,532 66,835 Energy 7.5% Aker Solutions ASA 9, BG Group PLC 196,164 3,554 3,211 Bourbon SA 11, BP PLC 1,099,948 8,695 7,562 Caltex Australia, Ltd. 7, Cosmo Oil Company, Ltd. 32, ENI SpA 146,884 3,235 3,536 Fugro NV 3, Galp Energia SGPS SA-Class B 15, Idemitsu Kosan Co., Ltd. 1, Inpex, Inc Japan Petroleum Exploration Co. 1, JX, Inc. 129, Lundin Petroleum AB 12, Neste Oil OYJ 7, OMV AG 8, Origin Energy, Ltd. 62, Repsol SA 47, Repsol YPF SA 47,049 1, Royal Dutch Shell PLC-Class A 214,643 6,607 7,368 Royal Dutch Shell PLC-Class B 152,022 4,559 5,348 Saipem 15, Santos, Ltd. 54, SeaDrill, Ltd. 20, Showa Shell Sekiyu KK 10, Statoil ASA 64,187 1,493 1,596 Subsea 7 SA 16, Technip SA 5, Tenaris SA 27, Energy (continued) TonenGeneral Sekiyu KK 16, Total SA 122,950 6,600 6,295 Transocean, Ltd. 20,705 1, Tullow Oil PLC 52,248 1,000 1,062 Whitehaven Coal, Ltd. 25, Woodside Petroleum, Ltd. 38,008 1,539 1,331 WorleyParsons, Ltd. 11, ,146 47,481 Financials 24.0% 3i Group PLC 56, Aberdeen Asset Management PLC 48, Acom Co., Ltd. 2, Admiral Group PLC 11, Aegon NV 101, Aeon Credit Service Co., Ltd. 4, Aeon Mall Co., Ltd. 4, Ageas 13, AIA Group, Ltd. 772,759 2,620 3,003 Allianz AG 26,288 3,053 3,610 AMP, Ltd. 167, Anglo Irish Bank Co. PLC 80,243 3,355 2,459 Aozora Bank, Ltd. 31, Ascendas REIT 108, Assicurazioni Generali SpA 67,147 1,385 1,210 ASX, Ltd. 9, Aviva PLC 167, ,011 AXA SA 84,372 1,606 1,477 Baloise Holding AG 2, Banca Monte dei Paschi di Siena SpA 365, Banco Bilbao Vizcaya Argentaria SA 314,531 3,472 2,850 Banco de Sabadell SA 160, Banco Espirito Santo SA 113, Banco Popolare Scarl 98, Banco Popular Espanol SA 306, Banco Santander Central Hispano SA 596,056 6,620 4,695 Bank Hapoalim BM 59, Bank Leumi Le-Israel BM 72, Bank of East Asia, Ltd. 79, Bank of Kyoto, Ltd. (The) 18, Bank of Yokohama, Ltd. 71, Bankia SA 56, Banque Cantonale Vaudoise Barclays PLC 656,166 3,195 2,783 Bendigo Bank, Ltd. 22, BNP Paribas 57,907 3,853 3,231 BOC Hong Kong, Ltd. 214, British Land Co. PLC 49, The accompanying notes are an integral part of the financial statements. 290

291 BlackRock CDN MSCI EAFE Index Plus Fund Financials (continued) CapitaCommercial Trust-REIT 113, Capitaland, Ltd. 149, CapitaMall Trust-REIT 133, Capitamalls Asia, Ltd. 74, Centro Retail Australia REIT 77, CFS Retail Property Trust-REIT 113, Cheung Kong, Ltd. 80,000 1,072 1,218 Chiba Bank, Ltd. (The) 44, Chugoku Bank, Ltd. 10, Chuo Mitsui Trust, Inc. 179, City Developments, Ltd. 29, CNP Assurances 9, Commerzbank AG 218, Commonwealth Bank of Australia 91,961 4,663 5,911 Corio NV 3, Credit Agricole SA 58, Credit Saison Co., Ltd. 9, Credit Suisse Group 72,346 3,047 1,752 Criteria Caixacorp SA 45, Dai-ichi Life Insurance Co., Ltd Daiwa Securities Group, Inc. 96, Danske Bank A/S 37, DB RREEF Trust 105,000 1,154 1,268 Delta Lloyd 7, Deutsche Bank AG 53,688 3,338 2,324 Deutsche Boerse AG 11, Dexus Property Group 261, DNB Nor ASA 56, Erste Bank der Oesterreichischen Sparkassen AG 12, EXOR SpA 3, First Pacific Co., Ltd. 124, Fonciere des Regions REIT 1, Fukuoka Financial Group, Inc. 43, Gecina SA 1, Gjensidige Forsikring ASA 11, Global Logistic Properties, Ltd. 117, Goodman Group 97, GPT Group 82, Groupe Bruxelles Lambert SA 32, Gunma Bank, Ltd. 21, Hachijuni Bank (The), Ltd. 24, Hammerson PLC 40, Hang Lung Properties, Ltd. 130, Hang Seng Bank, Ltd. 44, Hannover Rueckversicherung AG 3, Hargreaves Lansdown PLC 16, Henderson Land Development Co., Ltd. 55, Hiroshima Bank (The), Ltd. 28, Financials (continued) Hong Kong Exchanges and Clearing, Ltd. 59,000 1, HSBC PLC 1,057,875 10,760 11,074 Hysan Development Co., Ltd. 37, ICADE 1, ICAP PLC 30, Immoeast AG 5, Immofinanz AG 56, Immofinanz Immobilien Anlagen AG 66, Industrivarden AB 6, Infineon Technologies AG 62, ING Groep NV 221,413 2,112 2,050 Insurance Australia Group, Ltd. 119, Intesa Sanpaolo SpA 580,602 1, Intesa Sanpaolo SpA RNC 50, Investec PLC 31, Investor AB-Class B 26, Iyo Bank, Ltd. 15, Japan Prime Realty Investment Corp. REIT Japan Real Estate Investment Corp. REIT Japan Retail Fund Investment Corp. REIT Joyo Bank, Ltd. (The) 38, Julius Baer Group, Ltd. 13, KBC Groep NV 9, Keppel Land, Ltd. 43, Kerry Properties, Ltd. 41, Kinnevik Investment AB 11, Klepierre 5, Land Securities Group PLC 44, Legal & General Group PLC 339, Lend Lease Corp., Ltd. 31, Liberty International PLC 32, Link REIT 131, Lloyds TSB Group PLC 2,437,146 2,233 1,890 London Stock Exchange Group PLC 10, Macquarie Group, Ltd. 19, Man Group PLC 2, Mapfre SA 42, Mediobanca SpA 28, Merck & Co., Inc. 3, Mirvac Group 197, Mitsubishi Estate Co., Ltd. 72,000 1,237 1,698 Mitsubishi UFJ Financial Group, Inc. 735,800 3,794 3,898 Mitsubishi UFJ Lease & Finance Co., Ltd. 3, Mitsui Fudosan Co., Ltd. 48, ,154 Mitsui Sumitomo Insurance Group, Inc. 29, The accompanying notes are an integral part of the financial statements. 291

292 BlackRock CDN MSCI EAFE Index Plus Fund Financials (continued) Mizrahi Tefahot Bank, Ltd. 7, Mizuho Financial Group, Inc. 1,319,141 2,202 2,370 Muenchener Rueckversicherungs AG 10,319 1,411 1,843 National Australia Bank, Ltd. 131,246 3,105 3,390 Natixis 52, New World Development, Ltd. 213, Nippon Building Fund, Inc. REIT Nishi-Nippon City Bank, Ltd. (The) 37, NKSJ, Inc. 21, Nomura, Inc. 209,000 1,077 1,211 Nomura Real Estate, Inc. 5, Nomura Real Estate Office Fund, Inc. REIT Nordea Bank AB 151,552 1,480 1,440 NTT Urban Development Corp Old Mutual PLC 280, ORIX Corp. 6, Oversea-Chinese Banking Corp. 149,000 1,018 1,182 Pargesa Holding SA 1, Partners Group Holding AG Petrofac, Ltd. 14, Pohjola Bank PLC 7, Prudential PLC 147,534 1,430 2,063 QBE Insurance Group, Ltd. 68,035 1, Raiffeisen International Bank Holding AG 2, Ratos AB 11, Resolution, Ltd. 79, Resona, Inc. 109, Royal Bank of Scotland Group PLC 120, Sampo OYJ 24, SBI, Inc. 12, Schroders PLC 6, SCOR SE 9, Segro PLC REIT 42, Seven Bank, Ltd. 34, Shinsei Bank, Ltd. 89, Shizuoka Bank, Ltd. (The) 31, Shoei Co. Ltd./Chiyoda-ku 13, Singapore Exchange, Ltd. 50, Sino Land Co. 172, Skandinaviska Enskilda Banken AB- Class A 81, Societe Generale-Class A 40,499 2,031 1,507 Sony Financial, Inc. 10, Standard Chartered PLC 125,870 3,328 3,202 Standard Life PLC 135, Stockland 133, Sumitomo Mitsui Financial Group, Inc. 77,600 2,527 2,775 Financials (continued) Sumitomo Realty & Development Co., Ltd. 21, Sun Hung Kai Properties, Ltd. 91,000 1,336 1,358 Suncorp-Metway, Ltd. 74, Suruga Bank, Ltd. 10, Svenska Handelsbanken-Class A 28, ,016 Swedbank AB 47, Swire Pacific, Ltd.-Class A 39, Swire Properties, Ltd. 67, Swiss Life Holding 1, Swiss Prime Site AG 3, Swiss Re, Ltd. 20,320 1,166 1,457 T&D, Inc. 33, Tokio Marine, Inc. 40,000 1,057 1,095 Tokyu Land Corp. 25, TrygVesta AS 1, UBS AG 210,245 3,336 3,264 Unibail 5, ,272 Unicredit SpA 232, ,132 Unione Di Banche Italiane SCPA 48, United Overseas Bank, Ltd. 74,000 1,088 1,195 UOL Group, Ltd. 27, Vienna Insurance Group 2, Westfield Group 124,099 1,356 1,353 Westfield Retail Trust-REIT 167, Westpac Banking Corp. 177,882 4,018 4,786 Wharf, Ltd. 87, Wheelock & Co., Ltd. 53, Wing Hang Bank, Ltd. 10, Yamaguchi Financial Group, Inc. 12, Zurich Financial Services AG 8,518 2,028 2, , ,878 Health Care 10.0% Actelion, Ltd. 6, Alfresa Corp. 2, Astellas Pharma, Inc. 25, ,141 AstraZeneca PLC 71,999 3,336 3,389 Bayer AG 47,756 3,135 4,508 Cangene Corp. 65,500 2,948 2,519 Celesio AG 4, Chugai Pharmaceutical Co., Ltd. 12, Cie Generale d Optique Essilor International SA 11, ,167 Cochlear, Ltd. 3, Coloplast A/S 6, CSL, Ltd., Australia 29, ,626 Daiichi Sankyo Co., Ltd. 39, Dainippon Sumitomo Pharma Co., Ltd. 9, The accompanying notes are an integral part of the financial statements. 292

293 BlackRock CDN MSCI EAFE Index Plus Fund Health Care (continued) Eisai Co., Ltd. 14, Elan Corp. PLC 29, Elekta AB 20, Fresenius Medical Care AG & Co. KGaA 12, Fresenius SE 7, Getinge AB 11, GlaxoSmithKline PLC 287,428 5,482 6,206 Grifols SA-ADR 12, Hisamitsu Pharmaceutical Co. 3, Kyowa Hakko Kogyo Co., Ltd. 15, Lonza Group AG 3, M3, Inc Miraca, Inc. 3, Mitsubishi Tanabe Pharma Corp. 13, Novartis AG Registered 132,881 7,120 8,304 Novo-Nordisk A/S-Class B 23,517 2,183 3,788 Olympus Corp. 12, ONO Pharmaceutical Co., Ltd. 4, Orion OYJ-Class B 5, Otsuka Co., Ltd. 20, Prothena Corp. PLC Qiagen NV 13, Ramsay Health Care, Ltd. 7, Roche Holding AG Genusschein 40,585 6,277 8,123 RSA Insurance Group PLC 205, Sanofi-Aventis 68,884 4,756 6,441 Santen Pharmaceutical Co., Ltd. 4, Shionogi & Co., Ltd. 17, Shire, Ltd. 32, Smith & Nephew PLC 51, Sonic Healthcare, Ltd. 21, Sonova Holding AG 2, Suzuken Co., Ltd. 4, Sysmex Corp. 4, Taisho Pharmaceutical Co., Ltd. 2, Takeda Pharmaceutical Co., Ltd. 45,600 2,066 2,024 Terumo Corp. 8, Teva Pharmaceutical Industries, Ltd. 54,197 3,033 2,023 Tsumura & Co. 3, UCB SA 6, William Demant Holding 1, ,223 63,791 Industrials 12.8% ABB, Ltd. 127,018 2,592 2,591 Abertis Infraestructuras SA 20, Acciona SA 1, ACS Actividades Cons y Serv 8, Industrials (continued) Adecco SA 7, Aeroports de Paris 1, Aggreko PLC 15, Airlines 13, Alfa Laval AB 19, All Nippon Airways Co., Ltd. 65, ALS, Ltd./Queensland 19, Alstom 11, Amada Co., Ltd. 20, Amadeus IT Holding SA 17, AMEC PLC 37, Andritz AG 4, Antofagasta PLC 22, AP Moller-Maersk A/S-Class A AP Moller-Maersk A/S-Class B Asahi Glass Co., Ltd. 59, Asciano Group 55, Assa Abloy AB-Class B 19, Atlantia SpA 18, Atlas Copco AB-Class A 38, ,054 Atlas Copco AB-Class B 22, Auckland International Airport, Ltd. 50, Aurizon, Ltd. 104, Babcock International Group PLC 20, BAE Systems PLC 188, ,026 Balfour Beatty PLC 39, Bouygues 10, Brambles Industries PLC 90, Brenntag AG 2, Bunzl PLC 19, Cathay Pacific Airways, Ltd. 69, Central Japan Railway Co. 8, Chiyoda Corp. 9, Cie de Saint-Gobain 23,096 1, Cie Generale de Geophysique- Veritas 9, Cie Generale des Etablissements Michelin 10, Cobham PLC 61, ComfortDelGro Corp., Ltd. 110, Dai Nippon Printing Co., Ltd. 32, Daikin Industries, Ltd. 13, Delek Group, Ltd Deutsche Post AG 52, ,139 DSV A/S 10, East Japan Railway Co. 19,300 1,312 1,238 Edenred 9, European Aeronautic Defense and Space Co. 23, Experian, Ltd. 58, The accompanying notes are an integral part of the financial statements. 293

294 BlackRock CDN MSCI EAFE Index Plus Fund Industrials (continued) Fanuc, Ltd. 11,100 1,397 2,034 Ferrovial SA 22, Fiat Industrial SpA 49, Finmeccanica SpA 23, Fraport AG 2, Fraser and Neave, Ltd. 53, Fuji Electric Co., Ltd. 30, Furukawa Electric Co., Ltd. (The) 38, GEA Group AG 10, Geberit AG 2, Genting International PLC 353, Hankyu, Inc. 65, Hexagon AB 13, Hino Motors, Ltd. 15, Hitachi Construction Machinery Co., Ltd. 6, Hitachi High-Technologies Corp. 3, Hochtief AG 1, Hopewell, Ltd. 31, Hutchison Port Trust-UNIT 303, Hutchison Whampoa, Ltd. 123, ,277 IHI Corp. 78, IMI PLC 18, International Consolidated Airlines Group SA 54, Intertek Group PLC 9, Invensys PLC 47, Itochu Corp. 86, Japan Airlines Co., Ltd. 3, Japan Steel Works, Ltd. (The) 18, JGC Corp. 12, JS Group Corp. 15, JTEKT Corp. 12, Kajima Corp. 47, Kamigumi Co., Ltd. 14, Kawasaki Heavy Industries, Ltd. 83, Keihin Electric Express Railway Co., Ltd. 27, Keio Corp. 34, Keisei Electric Railway Co., Ltd. 16, Keppel Corp., Ltd. 82, Kinden Corp. 7, Kintetsu Corp. 95, Komatsu, Ltd. 53,700 1,188 1,349 Kone OYJ 8, Koninklijke Boskalis Westminster NV 4, Koninklijke Vopak NV 4, Kubota Corp. 63, Kuehne & Nagel International AG 3, Kurita Water Industries, Ltd. 6, Industrials (continued) Legrand SA 13, Leighton, Ltd. 8, Marubeni Corp. 95, Medipal Corp. 8, Meggitt PLC 44, Melrose Industries PLC 69, Metso OYJ 7, Mitsubishi Corp. 80,800 1,764 1,531 Mitsubishi Electric Corp. 111,000 1, Mitsubishi Heavy Industries, Ltd. 175, Mitsubishi Logistics Corp. 7, Mitsui & Co., Ltd. 99,900 1,556 1,475 Mitsui OSK Lines, Ltd. 65, MTR Corp. 83, Nabtesco Corp. 5, NGK Insulators, Ltd. 16, Nippon Express Co., Ltd. 49, Nippon Yusen KK 92, Noble Group, Ltd. 221, NSK, Ltd. 25, NWS, Ltd. 79, Obayashi Corp. 38, Odakyu Electric Railway Co., Ltd. 36, Orient Overseas International, Ltd. 12, Orkla ASA 43, Otsuka Corp Park24 Co., Ltd. 5, Qantas Airways, Ltd. 65, Randstad NV 6, Rexel SA 6, Rolls Royce PLC 107,679 1,145 1,521 Ryanair PLC, Sponsored ADR 1, Safran SA 13, Sandvik AB 57, Scania AB-Class B 18, Schindler Holding AG 2, Schindler Holding AG-REG 1, Schneider Electric SA 30,328 1,826 2,181 Secom Co., Ltd. 12, Securitas AB-Class B 18, SembCorp Industries, Ltd. 57, SembCorp Marine, Ltd. 49, Serco Group PLC 28, SGS SA Shimadzu Corp. 13, Shimizu Corp. 34, Siemens AG Registered 47,519 4,921 5,123 Singapore Airlines, Ltd. 32, The accompanying notes are an integral part of the financial statements. 294

295 BlackRock CDN MSCI EAFE Index Plus Fund Industrials (continued) Singapore Technologies Engineering, Ltd. 88, Skanska AB-Class B 22, SKF AB 22, SMC Corp./Japan 3, Smiths Group PLC 22, Societe BIC SA 1, Sojitz Corp. 72, Sulzer AG 1, Sumitomo Corp. 64, Sumitomo Electric Industries, Ltd. 43, Sumitomo Heavy Industries, Ltd. 31, Sydney Airport 10, Taisei Corp. 58, Thales SA 5, THK Co., Ltd. 7, Tobu Railway Co., Ltd. 59, Tokyu Corp. 65, Toll, Ltd. 39, Toppan Printing Co., Ltd. 33, Toto, Ltd. 17, Toyota Tsusho Corp. 12, Transurban Group 75, Ushio, Inc. 5, Vallourec 5, Vinci SA 26,532 1,390 1,250 Volvo AB-Class B 125,231 1,679 1,702 Wartsila OYJ-Class B 9, Weir Group PLC 12, Wendel SA 1, Wesfarmers, Ltd. 58,166 1,868 2,216 West Japan Railway Co. 9, Wolseley PLC 15, Yamato Co., Ltd. 21, Yangzijiang Shipbuilding 104, Zardoya Otis SA 9, Zodiac Aerospace 1, ,239 81,294 Information Technology 3.9% Advantest Corp. 8, ARM PLC 79, ASM Pacific Technology 11, Asml Holding 18,197 1,067 1,145 Atos Origin 3, Brother Industries, Ltd. 13, Canon, Inc. 8, CapGemini SA 37, Citizen Watch Co., Ltd. 15, Computershare, Ltd. 25, Information Technology (continued) Dassault Systemes SA 3, Fujitsu, Ltd. 107, Gemalto 4, Gree, Inc. 5, Hamamatsu Photonics KK 4, Hirose Electric Co., Ltd. 1, Hitachi, Ltd. 268,000 1,207 1,555 Hoya Corp. 25, Ibiden Co., Ltd. 6, Itochu Techno-Science Corp. 1, Keyence Corp. 2, Konami Corp. 5, Konica Minolta, Inc. 28, Koninklijke (Royal) Philips Electronics NV 60,078 1,885 1,566 Kyocera Corp. 8, Mabuchi Motor Co., Ltd. 1, Mellanox Technologies, Ltd. 2, Millicom International Cellular SA, SDR 3, Murata Manufacturing Co., Ltd. 11, NEC Corp. 153, Nexon Co., Ltd. 6, NICE Systems, Ltd. 3, Nidec Corp. 6, Nintendo Co., Ltd. 6,100 1, Nippon Electric Glass Co., Ltd. 22, Nokia OYJ 215,784 2, Nomura Research Institute, Ltd. 5, NTT Data Corp Omron Corp. 11, Oracle Corp. Japan 2, Ricoh Co., Ltd. 36, Rohm Co., Ltd. 5, Sage Group PLC 73, SAP AG 53,200 2,785 4,244 Square Enix Co., Ltd. 3, STMicroelectronics NV 36, Sumco Corp. 6, TDK Corp. 7, Telefonaktiebolaget LM Ericsson- Class B 175,546 1,983 1,748 Tokyo Electron, Ltd. 9, Toshiba Corp. 231,000 1, Trend Micro, Inc. 5, Yahoo! Japan Corp Yaskawa Electric Corp. 12, Yokogawa Electric Corp. 12, ,139 25,057 The accompanying notes are an integral part of the financial statements. 295

296 BlackRock CDN MSCI EAFE Index Plus Fund Materials 10.2% Air Liquide 18,045 1,847 2,250 Akzo Nobel NV 13, Alumina, Ltd. 133, Amcor, Ltd. 69, ArcelorMittal 53,846 1, Arkema SA 3, Asahi Kasei Corp. 73, Aurizon Mines, Ltd. 156,838 3,417 4,055 BASF SE 53,044 3,415 4,963 BHP Billiton PLC 121,960 3,918 4,204 BHP Billiton, Ltd. 186,256 7,019 7,143 Boliden AB 15, Boral, Ltd. 42, CRH PLC 41, Croda International PLC 7, Daicel Chemical Industries, Ltd. 17, Daido Steel Co., Ltd. 16, Denki Kagaku Kogyo KK 27, EMS-Chemie Holding AG Eurasian Natural Resources 14, Evraz PLC 18, Fletcher Building, Ltd. 39, Fortescue Metals Group, Ltd. 79, Fresnillo PLC 10, GDF Suez 73,788 2,508 1,507 Givaudan Glencore International PLC 219,107 1,229 1,245 Heidelbergcement AG 8, Hitachi Chemical Co., Ltd. 5, Hitachi Metals, Ltd. 9, Holcim, Ltd. 13, Iluka Resources, Ltd. 23, Imerys SA 1, Incitec Pivot, Ltd. 94, Israel Chemicals, Ltd. 25, Israel Corp., Ltd James Hardie Industries NV 25, JFE, Inc. 28, Johnson Matthey PLC 11, JSR Corp. 10, K+S AG 9, Kaneka Corp. 16, Kansai Paint Co., Ltd. 13, Kazakhmys PLC 12, Kobe Steel, Ltd. 143, Koninklijke DSM 8, Kuraray Co., Ltd. 19, Lafarge SA 10, Lanxess AG 4, Materials (continued) Linde AG 10,698 1,412 1,852 Maruichi Steel Tube, Ltd. 2, Mitsubishi Chemical Corp. 79, Mitsubishi Gas Chemical Co., Inc. 22, Mitsubishi Materials Corp. 64, Mitsui Chemicals, Inc. 50, Newcrest Mining, Ltd. 43,960 1,475 1,008 Nippon Paper Group, Inc. 5, Nippon Steel Corp. 440,060 1,319 1,064 Nitto Denko Corp. 9, Norsk Hydro ASA 54, Novozymes AS 13, Oji Paper Co., Ltd. 49, Olam International, Ltd. 29, Orica, Ltd. 20, OZ Minerals, Ltd. 18, Prysmian SpA 11, Randgold Resources, Ltd. 5, Rexam PLC 50, Rio Tinto PLC 77,458 4,231 4,401 Rio Tinto, Ltd. 25,076 1,696 1,711 Salzgitter AG 2, Shin-Etsu Chemical Co., Ltd. 23,600 1,311 1,421 Showa Denko KK 83, Sika AG Sims Group, Ltd. 9, Solvay SA 3, Stora Enso OYJ-Class R 33, Sumitomo Chemical Co., Ltd. 88, Sumitomo Metal Mining Co., Ltd. 30, Svenska Cellulosa AB-Class B 33, Syngenta AG 5,382 1,443 2,146 Taiheiyo Cement Corp. 63, Taiyo Nippon Sanso Corp. 15, Teijin, Ltd. 54, ThyssenKrupp AG 22, Toray Industries, Inc. 85, Toyo Seikan Kaisha, Ltd. 8, Ube Industries, Ltd. 58, Umicore 6, UPM-Kymmene OYJ 30, Vedanta Resources PLC 6, Voestalpine AG 6, Xstrata PLC 120,955 1,988 2,069 Yara International ASA 10, ,750 65,008 Telecommunication Services 4.7% Belgacom SA 8, Bezeq Israeli Telecommunication Corp., Ltd. 108, The accompanying notes are an integral part of the financial statements. 296

297 BlackRock CDN MSCI EAFE Index Plus Fund Telecommunication Services (continued) BT Group PLC 454,195 1,033 1,699 Deutsche Telekom AG 162,489 2,171 1,836 Elisa OYJ-Class A 8, Eurazeo 1, Eutelsat Communications 7, France Telecom SA 106,716 2,232 1,166 HKT Trust / HKT, Ltd. 130, Iliad SA 1, Inmarsat PLC 25, KDDI Corp. 15,600 1,004 1,092 Koninklijke KPN 57, Nippon Telegraph & Telephone Corp. 25,200 1,141 1,052 NTT DoCoMo, Inc ,433 1,257 PCCW, Ltd. 217, Portugal Telecom SGPS SA 37, SES 17, Singapore Telecommunications, Ltd. 460,000 1,116 1,237 Softbank Corp. 51,300 1,466 1,852 Starhub, Ltd. 35, Swisscom AG 1, TDC A/S 27, Tele2 AB-Class B 17, Telecom Corp. of New Zealand, Ltd. 110, Telecom Italia SpA 540, Telecom Italia SpA-RNC 342, Telefonica SA 236,475 5,152 3,135 Telekom Austria AG 12, Telenet Group Holding 3, Telenor ASA 41, TeliaSonera AB 125, Telstra Corp., Ltd. 250, ,131 United Internet AG 5, Vodafone Group PLC 2,840,519 6,768 7,098 Ziggo 6, ,057 29,515 Utilities 3.6% AGL Energy, Ltd. 31, Air Water, Inc. 9, APA Group 47, Centrica PLC 299,743 1,429 1,618 Cheung Kong Infrastructure, Ltd. 28, Chubu Electric Power Co., Inc. 36, Chugoku Electric Power Co. 16, CLP, Ltd. 104, Contact Energy, Ltd. 21, E.ON AG 104,150 3,443 1,925 EDF SA 14, Utilities (continued) EDP-Energias de Portugal SA 108, Electric Power Development Co. 6, Electricite de France 13, Enagas 10, Enel Green Power SpA 96, Enel SpA 379,607 1,932 1,564 Fortum OYJ 25, Gas Natural SDG SA 20, Hokkaido Electric Power Co., Inc. 10, Hokuriku Electric Power Co. 9, Hong Kong & China Gas 301, Hongkong Electric, Ltd. 79, Iberdrola SA 172,330 1, Kansai Electric Power Co. (The), Inc. 42,800 1, Kyushu Electric Power Co., Inc. 24, National Grid PLC 209,978 1,928 2,388 Osaka Gas Co., Ltd. 108, Red Electrica de Espana 6, RWE AG 28,272 1,985 1,159 RWE AG Preferred 2, Scottish & Southern Energy PLC 54,633 1,053 1,253 Severn Trent PLC 13, Shikoku Electric Power Co. 10, Snam SpA 97, SP Ausnet 96, Suez Environnement SA 16, Terna SpA 74, Toho Gas Co., Ltd. 23, Tohoku Electric Power Co., Inc. 26, Tokyo Electric Power Co. (The), Inc. 81,900 1, Tokyo Gas Co., Ltd. 142, United Utilities Group PLC 39, Veolia Environnement SA 19, Verbund-Oesterreichische Elektrizitaetswirtschafts AG- Class A 3, ,309 22,656 Total Common Stocks 603, ,419 Transaction Costs (Note 2) (239) Total Investments 603, ,419 Other Assets and Liabilities 1.2% 7,502 Net Assets 635,921 The accompanying notes are an integral part of the financial statements. 297

298 BlackRock CDN MSCI EAFE Index Plus Fund Portfolio Concentration (as a percentage of Net Assets) As at December 31, 2012 As at December 31, 2011 Portfolio by Category (%) (%) Consumer Discretionary Consumer Staples Energy Financials Health Care Industrials Information Technology Materials Telecommunication Services Utilities Other Assets and Liabilities Open futures contracts held by the Fund as at December 31, 2012 are shown in Note 4. The accompanying notes are an integral part of the financial statements. 298

299 BlackRock CDN Global Equity Focus Fund Statement of Net Assets As at December Assets Investments - at fair (Note 2) $ 74,714,312 $ 50,079,510 Cash 100,124 1,206,466 Net unrealized gain on forward currency contracts (Note 5) - 95,343 Dividends receivable 122,277 36,963 Tax reclaim on dividends receivable 80,659 9,045 Accounts receivable for investment sales 35-75,017,407 51,427,327 Liabilities Operating expenses payable 19,965 19,609 Net unrealized loss on forward currency contracts (Note 5) - 74,273 19,965 93,882 Net Assets $ 74,997,442 $ 51,333,445 Number of Units Issued and Outstanding (Note 8) 6,893,925 5,401,510 Net Assets per Unit $ $ 9.50 Investments at Cost $ 68,738,218 $ 50,226,981 Approved by BlackRock Asset Management Canada Limited, Manager of the Funds Eric Léveillé, Director Noel Archard, Director The accompanying notes are an integral part of the financial statements. 299

300 BlackRock CDN Global Equity Focus Fund Statement of Operations For the Years Ended December Revenue Dividend income $ 1,824,342 $ 353,155 Interest income Net realized gain (loss) from forward currency contracts (38,686) 158,948 Foreign exchange gain 9, ,878 Withholding taxes (175,226) (37,043) 1,620, ,974 Expenses Custodian fees 24,672 19,313 Fund accounting expenses 60,401 57,784 Unitholder communication s Audit fees 13,407 13,704 Securities filing fees 1, Independent review committee fees Other operating expenses 3,338 5, ,026 97,355 Net Investment Income for the Year 1,517, ,619 Gain (Loss) on Investments Net realized gain (loss) on sale of investments 1,693,004 (1,012,526) Foreign tax - (22,539) Transaction s (Note 2,13) (180,497) (66,066) Net change in unrealized appreciation (depreciation) in of investments 6,123,565 (471,993) Net change in unrealized appreciation (depreciation) in of forward currency contracts (21,070) 8,146 Net Gain (Loss) on Investments 7,615,002 (1,564,978) Increase (Decrease) in Net Assets from Operations $ 9,132,663 $ (1,048,359) Increase (Decrease) in Net Assets from Operations per Unit $ 1.34 $ (0.46) Statement of Changes in Net Assets For the Years Ended December Net Assets - Beginning of Year $ 51,333,445 $ 10,816,046 Increase (Decrease) in Net Assets from Operations 9,132,663 (1,048,359) Capital Transactions Proceeds from issue of units 15,170,963 41,565,758 Reinvestment of distributions 1,892, ,234 Redemption of units (639,629) - Net capital transactions 16,423,803 42,044,992 Distributions From net investment income (1,355,915) (479,234) From capital gains (536,554) - Total distributions (1,892,469) (479,234) Increase in Net Assets for the Year 23,663,997 40,517,399 Net Assets - End of Year $ 74,997,442 $ 51,333,445 The accompanying notes are an integral part of the financial statements. 300

301 BlackRock CDN Global Equity Focus Fund Common Stocks Consumer Discretionary 22.4% Anheuser-Busch InBev 19,569 1,374 1,685 AutoZone, Inc. 3,375 1,180 1,191 Coach, Inc. 27,613 1,537 1,527 Comcast Corp.-Class A 80,243 2,273 2,987 DIRECTV 44,992 2,063 2,248 Discovery Communications-Class A 23,989 1,230 1,516 Newell Rubbermaid, Inc. 68,461 1,255 1,518 Nissan Motor Co., Ltd. 116,600 1,077 1,089 Swatch Group AG 3,037 1,236 1,523 Time Warner, Inc. 31,577 1,468 1,504 14,693 16,788 Consumer Staples 8.6% Imperial Tobacco Group PLC 94,858 3,419 3,640 Philip Morris International, Inc. 16,352 1,370 1,362 Reckitt Benckiser Group PLC 23,217 1,233 1,456 6,022 6,458 Energy 5.2% Royal Dutch Shell PLC-Class B 77,083 2,696 2,712 Schlumberger, Ltd. 16,560 1,158 1,142 3,854 3,854 Financials 11.3% Bank Rakyat Indonesia Persero Tbk PT 1,543,500 1,122 1,100 Berkshire Hathaway, Inc.-Class B 21,717 1,803 1,941 BNP Paribas 10, ICICI Bank, Ltd.-ADR 23, ,020 JPMorgan Chase & Co. 35,842 1,273 1,570 Progressive Corp. (The) 54,157 1,223 1,138 Sberbank of Russia-ADR 90, ,126 7,595 8,497 Health Care 10.5% Edwards Lifesciences Corp. 9, Pfizer, Inc. 106,238 2,145 2,654 Roche Holding AG Genusschein 11,937 2,091 2,389 Sanofi-Aventis 21,625 1,548 2,022 6,570 7,894 Industrials 12.0% Assa Abloy AB-Class B 39,981 1,312 1,486 Atlas Copco AB-Class A 46,696 1,133 1,274 Expeditors International of Washington, Inc. 24, Fanuc, Ltd. 6,500 1,132 1,191 Masco Corp. 74,720 1,143 1,240 Stanley Black & Decker, Inc. 20,769 1,375 1,530 United Technologies Corp. 16,372 1,242 1,337 8,270 9,026 Information Technology 16.2% Agilent Technologies, Inc. 38,503 1,539 1,570 Asml Holding 17,173 1,007 1,081 Cognizant Technology Solutions Corp.-Class A 18,910 1,302 1,394 EMC Corp., Massachusetts 62,635 1,680 1,578 Lam Research Corp. 38,912 1,319 1,399 Mercadolibre, Inc. 17,053 1,291 1,338 Samsung Electronics Co., Ltd Texas Instruments, Inc. 39,698 1,175 1,223 Veeco Instruments, Inc. 23, Xilinx, Inc. 31,840 1,043 1,138 11,793 12,151 Materials 7.1% Ecolab, Inc. 18,559 1,219 1,329 Linde AG 8,156 1,274 1,412 Praxair, Inc. 14,578 1,550 1,588 Rio Tinto PLC 17, ,012 5,317 Telecommunication Services 6.3% Rogers Communications, Inc.-Class B 24, ,110 Vodafone Group PLC 1,448,199 4,044 3,619 4,973 4,729 Total Common Stocks 68,782 74,714 Transaction Costs (Note 2) (44) Total Investments 68,738 74,714 Other Assets and Liabilities 0.4% 283 Net Assets 74,997 Portfolio Concentration (as a percentage of Net Assets) As at December 31, 2012 As at December 31, 2011 Portfolio by Category (%) (%) Consumer Discretionary Consumer Staples Energy Financials Health Care Industrials Information Technology Materials Telecommunication Services Other Assets and Liabilities The accompanying notes are an integral part of the financial statements. 301

302 BlackRock CDN Global Developed Real Estate Index Fund (Note 1) Statement of Net Assets As at December 31 Assets Investments-at fair (Note 2) $ 366,428,219 Cash 1,823,923 Dividends and distributions from underlying trust units receivable 1,016,428 Tax reclaim on dividends receivable 15,706 Accounts receivable for investment sales 3,795, ,079,565 Liabilities Operating expenses payable 37,260 Payables for redemption of units 5,208,800 5,246,060 Net Assets $ 367,833,505 Net Assets per Class Class D $ 367,833,505 $ 367,833,505 Number of Units Issued and Outstanding (Note 8) Class D 34,548,681 Net Assets per Unit Class D $ Investments at Cost $ 346,639,193 Approved by BlackRock Asset Management Canada Limited, Manager of the Funds Eric Léveillé, Director Noel Archard, Director The accompanying notes are an integral part of the financial statements. 302

303 BlackRock CDN Global Developed Real Estate Index Fund (Note 1) Statement of Operations For the Period Ended December 31 Revenue Dividend income and distributions from underlying trust units $ 4,182,615 Interest income 2,608 Foreign exchange loss (27,908) Withholding taxes (1,046,122) ,111,193 Expenses Custodian fees 134,361 Fund accounting expenses 27,415 Unitholder communication s 261 Audit fees 11,246 Securities filing fees 3,376 Independent review committee fees 29 Other operating expenses 10, ,890 Net Investment Income for the Period 2,924,303 Gain on Investments Net realized gain on sale of investments 319,285 Transaction s (Note 2,13) (171,533) Net change in unrealized appreciation in of investments 19,789,026 Net Gain on Investments 19,936,778 Increase in Net Assets from Operations $ 22,861,081 Increase in Net Assets from Operations per Class Class D $ 22,861,081 $ 22,861,081 Increase in Net Assets from Operations per Unit Class D $ 0.78 Statement of Changes in Net Assets For the Period Ended December Fund Class D Net Assets - Beginning of Period $ - $ - Increase in Net Assets from Operations 22,861,081 22,861,081 Capital Transactions Proceeds from issue of units 361,806, ,806,627 Reinvestment of distributions 3,087,260 3,087,260 Redemption of units (16,834,203) (16,834,203) Net capital transactions 348,059, ,059,684 Distributions From net investment income (2,907,143) (2,907,143) From capital gains (180,117) (180,117) Total distributions (3,087,260) (3,087,260) Increase in Net Assets for the Period 367,833, ,833,505 Net Assets - End of Period $ 367,833,505 $ 367,833,505 The accompanying notes are an integral part of the financial statements. 303

304 BlackRock CDN Global Developed Real Estate Index Fund Common Stocks and Income Trusts Financials 99.6% Acadia Realty Trust-REIT 17, Activia Properties, Inc. REIT Advance Residence Investment Corp. REIT Aeon Mall Co., Ltd. 33, Affine SA REIT 1, Agile Property, Ltd. 510, Agree Realty Corp. REIT 4, Alexander s, Inc. REIT Alexandria Real Estate Equities, Inc. REIT 23,236 1,692 1,602 Allied Properties Real Estate Investment Trust-REIT 21, Allreal Holding AG 2, Alstria Office REIT-AG 30, American Assets Trust, Inc.-REIT 14, American Campus Communities, Inc. REIT 38,164 1,756 1,752 American Realty Capital Trust, Inc.- REIT 58, ANF Immobilier REIT 3, Apartment Investment & Management Co. REIT-Class A 53,115 1,403 1,431 Artis Real Estate Investment Trust- REIT 40, Ascendas REIT 816,000 1,509 1,576 Ashford Hospitality Trust, Inc.-REIT 25, Associated Estates Realty Corp. REIT 18, AvalonBay Communities, Inc. REIT 41,649 5,835 5,621 Azrieli Group 13, Befimmo S.C.A. Sicafi REIT 6, Beni Stabili SpA REIT 362, Big Yellow Group PLC REIT 49, BioMed Realty Trust, Inc.-REIT 56,192 1,044 1,082 Boardwalk REIT 17,450 1,111 1,122 Boston Properties, Inc. REIT 54,550 6,003 5,747 Brandywine Realty Trust-REIT 52, BRE Properties, Inc. REIT 27,992 1,405 1,416 British Land Co. PLC 322,380 2,730 2,932 Brookfield Properties Co. 136,765 2,306 2,309 BWP Trust-REIT 193, CA Immobilien Anlagen AG 32, Calloway REIT 39,031 1,142 1,128 Camden Property Trust-REIT 30,396 2,069 2,065 Campus Crest Communities, Inc. REIT 14, Canadian Apartment Properties REIT 36, Canadian REIT 24,733 1,037 1,069 CapitaCommercial Trust-REIT 772, ,057 Financials (continued) Capital & Counties Properties PLC 275, ,078 Capitaland, Ltd. 1,155,000 2,849 3,484 CapitaMall Trust-REIT 943,000 1,504 1,637 Capitamalls Asia, Ltd. 568, CapLease, Inc. REIT 25, Castellum AB 61, CBL & Associates Properties, Inc. REIT 58,639 1,192 1,238 CDL Hospitality Trusts-REIT 263, Cedar Shopping Centers, Inc. REIT 25, Centro Retail Australia REIT 521,201 1,131 1,223 CFS Retail Property Trust-REIT 771,823 1,592 1,528 Champion REIT 1,051, Charter Hall Retail REIT 116, Chartwell Seniors Housing REIT 62, Chesapeake Lodging Trust-REIT 14, City Developments, Ltd. 249,000 2,349 2,608 Citycon OYJ 90, Cofinimmo REIT 5, Colonia Real Estate AG REIT Colonial Properties Trust-REIT 31, Cominar REIT 45,092 1,080 1,017 Commonwealth Property Office Fund REIT 870, CommonWealth REIT 30, Conwert Immobilien Invest SE 31, Corio NV 26,341 1,148 1,185 Corporate Office Properties REIT 29, Country Garden Co. 1,335, Cousins Properties, Inc. REIT 38, Crombie Real Estate Investment Trust-REIT 18, Cubesmart REIT 46, Daejan PLC 1, Daiwahouse Residential Investment Corp. REIT DCT Industrial Trust, Inc.-REIT 97, DDR Corp. REIT 112,843 1,671 1,757 Derwent London PLC REIT 37,106 1,158 1,265 Deutsche Euroshop AG 19, Deutsche Wohnen AG 54, ,005 Development Securities PLC 44, Dexus Property Group 1,757,828 1,807 1,835 DiamondRock Hospitality Co. REIT 71, DIC Asset AG 13, Digital Realty Trust, Inc.-REIT 44,945 3,369 3,035 Douglas Emmett, Inc. REIT 38, Duke Realty Corp. REIT 99,865 1,405 1,379 Dundee International Real Estate Investment Trust-REIT 23, The accompanying notes are an integral part of the financial statements. 304

305 BlackRock CDN Global Developed Real Estate Index Fund Financials (continued) Dundee REIT 35,180 1,323 1,316 DuPont Fabros Technology, Inc. REIT 23, EastGroup Properties, Inc. REIT 10, Education Realty Trust, Inc.-REIT 41, EPR Properties REIT 16, Equity Lifestyle Properties, Inc. REIT 15,095 1,057 1,012 Equity One, Inc. REIT 22, Equity Residential REIT 118,151 7,134 6,663 Essex Property Trust, Inc.-REIT 13,232 2,014 1,933 Eurocommercial Properties REIT 14, Excel Trust, Inc.-REIT 14, Extendicare Inc. 32, Extra Space Storage, Inc. REIT 39,622 1,310 1,435 F&C Commercial Property Trust, Ltd. 200, Fabege AB 60, Fastighets AB Balder 43, Federal Realty Investment Trust- REIT 23,555 2,510 2,440 FelCor Lodging Trust, Inc.-REIT 47, First Capital Realty, Inc. 28, First Industrial Realty Trust, Inc.- REIT 36, First Potomac Realty Trust-REIT 18, Fonciere des Regions REIT 10, Forest City Enterprises-Class A 54, Franklin Street Properties Corp. REIT 30, Frontier Real Estate Investment Corp. REIT Gagfah SA 29, Gecina SA 6, General Growth Properties, Inc. REIT 170,912 3,149 3,380 Getty Realty Corp. REIT 9, Glimcher Realty Trust-REIT 51, Global Logistic Properties, Ltd. 836,000 1,571 1,894 Goodman Group 584,960 2,378 2,612 Government Properties Income Trust-REIT 15, GPT Group 643,846 2,329 2,443 Grainger PLC 149, Granite Real Estate, Inc. 17, Great Portland Estates PLC REIT 123, GSW Immobilien AG 18, H&R REIT 70,360 1,739 1,696 Hamborner REIT AG 17, Hammerson PLC 257,371 1,886 2,033 Hang Lung Properties, Ltd. 814,000 2,879 3,215 Hansteen PLC REIT 238, HCP, Inc. 164,871 7,537 7,414 Health Care, Inc. REIT 94,315 5,613 5,756 Healthcare Realty Trust, Inc.-REIT 31, Helical Bar PLC 42, Henderson Land Development Co., Ltd. 438,000 2,696 3,075 Hersha Hospitality Trust-REIT 73, Highwoods Properties, Inc. REIT 22, Home Properties, Inc. REIT 18,683 1,182 1,141 Financials (continued) Hongkong Land, Ltd. 642,000 3,913 4,462 Hospitality Properties Trust-REIT 45,079 1,072 1,050 Host Hotels & Resorts, Inc. REIT 261,933 3,914 4,087 Hudson Pacific Properties, Inc. REIT 13, Hufvudstaden AB 55, Hysan Development Co., Ltd. 290,000 1,254 1,390 ICADE 7, Immobiliare Grande Distribuzione REIT 52, Industrial & Infrastructure Fund Investment Corp. REIT Inland Real Estate Corp. REIT 33, Innvest Real Estate Investment Trust-REIT 36, Intervest Offices & Warehouses REIT 2, Investa Office Fund REIT 223, Investors Real Estate Trust-REIT 33, IRP Property Investments, Ltd. 46, IVG Immobilien AG 61, Japan Excellent, Inc. REIT Japan Prime Realty Investment Corp. REIT Japan Real Estate Investment Corp. REIT 215 2,054 2,097 Japan Retail Fund Investment Corp. REIT 768 1,310 1,403 Kenedix Realty Investment Corp. REIT Keppel Land, Ltd. 282, Kerry Properties, Ltd. 260,500 1,239 1,345 Killam Properties, Inc. 18, Kilroy Realty Corp. REIT 27,269 1,260 1,287 Kimco Realty Corp. REIT 147,881 2,880 2,845 Kite Realty Group Trust-REIT 29, Kiwi Income Property Trust-REIT 365, Klepierre 35,334 1,180 1,385 Klovern AB 48, Kungsleden AB 51, Land Securities Group PLC 283,620 3,555 3,732 LaSalle Hotel Properties REIT 31, Leasinvest Real Estate SCA REIT Lexington Realty Trust-REIT 62, Liberty International PLC 237,729 1,229 1,347 Liberty Property Trust-REIT 42,812 1,536 1,525 Link REIT 832,000 3,716 4,142 London & Stamford Property PLC REIT 202, LTC Properties, Inc. REIT 11, Macerich Co., REIT 49,868 2,859 2,893 Mack-Cali Realty Corp. REIT 32, Mapletree Commercial Trust-REIT 519, Mapletree Industrial Trust-REIT 454, Mapletree Logistics Trust-REIT 667, Medical Properties Trust, Inc.-REIT 49, Mercialys SA REIT 17, Mid-America Apartment Communities, Inc. REIT 15,394 1, Mirvac Group 1,241,405 1,798 1,899 The accompanying notes are an integral part of the financial statements. 305

306 BlackRock CDN Global Developed Real Estate Index Fund Financials (continued) Mitsubishi Estate Co., Ltd. 385,000 7,035 9,080 Mitsui Fudosan Co., Ltd. 325,000 6,393 7,815 Mobimo Holding AG 2, Morguard Real Estate Investment Trust-REIT 16, Mori Hills REIT Investment Corp Mori Trust Sogo, Inc. REIT Mucklow A & J Group PLC REIT 22, National Health Investors, Inc. REIT 10, National Retail Properties, Inc. REIT 40,025 1,187 1,243 New World China Land, Ltd. 936, New World Development, Ltd. 1,668,000 2,249 2,567 Nieuwe Steen Investments REIT 25, Nippon Accommodations Fund, Inc. REIT Nippon Building Fund, Inc. REIT 222 2,195 2,278 Nomura Real Estate, Inc. 28, Nomura Real Estate Office Fund, Inc. REIT Northern Property Real Estate Investment Trust-REIT 11, Northwest Healthcare Properties Real Estate Investment Trust- REIT 13, Norwegian Property ASA 186, NTT Urban Development Corp Omega Healthcare Investors, Inc. REIT 40, Orix Jreit, Inc. REIT Parkway Properties, Inc. REIT 13, Patrizia Immobilien AG 11, Pebblebrook Hotel Trust-REIT 21, Pennsylvania Real Estate Investment Trust-REIT 20, Picton Property Income, Ltd. 128, Piedmont Office Realty Trust, Inc.- REIT 61,677 1,052 1,109 Post Properties, Inc. REIT 19, Premier Investment Corp. REIT Primaris Retail REIT 35, Primary Health Properties PLC REIT 28, Prime Office REIT-AG 13, ProLogis, Inc. REIT 167,122 5,469 6,072 PS Business Parks, Inc. REIT 6, PSP Swiss Property AG 16,773 1,514 1,579 Public Storage, Inc. REIT 46,467 6,756 6,707 Quintain Estates & Development PLC 186, Ramco-Gershenson Properties Trust-REIT 17, Realty Income Corp. REIT 48,422 1,970 1,939 Regency Centers Corp. REIT 32,801 1,554 1,537 Retail Opportunity Investments Corp. REIT 19, RioCan REIT 108,187 3,030 2,975 RLJ Lodging Trust-REIT 38, Rouse Properties, Inc. REIT 9, Sabra Healthcare, Inc. REIT 13, Safestore PLC 66, Financials (continued) Saul Centers, Inc. REIT 5, Schroder Real Estate Investment Trust, Ltd.-REIT 130, Segro PLC REIT 270,926 1,017 1,078 Senior Housing Properties Trust- REIT 64,393 1,434 1,516 Shaftesbury PLC REIT 91, Shimao Property, Ltd. 506, Shui On Land, Ltd. 1,106, Simon Property Group, Inc. REIT 111,756 17,646 17,592 Sino Land Co. 1,072,000 1,875 1,909 SL Green Realty Corp. REIT 32,676 2,578 2,494 Societe De La Tour Eiffel REIT 2, Societe Immobiliere de Location pour l industrie et le Commerce REIT 4, Soho China, Ltd. 744, Sovran Self Storage, Inc. REIT 11, Spirit Realty Capital, Inc. REIT 10, Sponda OYJ 106, St. Modwen Properties PLC 57, STAG Industrial, Inc. REIT 13, Standard Life Investment Property Income Trust PLC 52, Stockland 802,597 2,811 2,929 Strategic Hotels & Resorts, Inc. REIT 73, Sumitomo Realty & Development Co., Ltd. 176,000 4,488 5,770 Sun Communities, Inc. REIT 11, Sun Hung Kai Properties, Ltd. 714,000 9,285 10,658 Sunstone Hotel Investors, Inc. REIT 50, Suntec Real Estate Investment Trust-REIT 815, ,113 Swire Properties, Ltd. 427,000 1,278 1,415 Swiss Prime Site AG 21,719 1,794 1,804 TAG Immobilien AG 45, Tanger Factory Outlet Centers REIT 34,267 1,112 1,166 Taubman Centers, Inc. REIT 17,794 1,383 1,394 Technopolis OYJ 29, Tokyo Tatemono Co., Ltd. 121, Tokyu Land Corp. 143, ,029 Tokyu, Inc. REIT Top, Inc. REIT UDR, Inc. REIT 91,034 2,333 2,155 UK Commercial Property Trust, Ltd. 182, Unibail 33,577 6,693 8,020 Unite Group PLC 60, United Urban Investment Corp. REIT Universal Health Realty Income Trust-REIT 4, UOL Group, Ltd. 209, ,017 Urstadt Biddle Properties, Inc., REIT-Class A 8, Vastned Retail REIT 7, Ventas, Inc. REIT 107,119 7,012 6,901 Vornado Realty Trust-REIT 67,780 5,539 5,404 Wallenstam AB 43, Warehouses De Pauw SCA REIT 3, The accompanying notes are an integral part of the financial statements. 306

307 BlackRock CDN Global Developed Real Estate Index Fund Financials (continued) Washington Real Estate Investment Trust-REIT 24, Weingarten Realty Investors REIT 44,124 1,194 1,177 Wereldhave Belgium REIT Wereldhave REIT 8, Westfield Group 840,049 8,821 9,161 Westfield Retail Trust-REIT 1,112,604 3,528 3,473 Wharf, Ltd. 552,000 3,350 4,269 Wihlborgs Fastigheter AB 29, Wing Tai, Ltd. 219, Winthrop Realty Trust-REIT 9, Workspace Group PLC REIT 54, Yanlord Land Group, Ltd. 218, , ,428 Total Common Stocks and Income Trusts 346, ,428 Transaction Costs (Note 2) (163) Total Investments 346, ,428 Other Assets and Liabilities 0.4% 1,406 Net Assets 367,834 Portfolio Concentration (as a percentage of Net Assets) As at Portfolio by Category December 31, 2012 (%) Financials 99.6 Other Assets and Liabilities 0.4 The accompanying notes are an integral part of the financial statements. 307

308 BlackRock CDN Global Infrastructure Equity Index Fund (Note 1) Statement of Net Assets As at December 31 Assets Investments - at fair (Note 2) $ 208,416,275 Cash 1,048,100 Dividends receivable 873,185 Tax reclaim on dividends receivable 29,618 Accounts receivable from issue of units 13, ,380,772 Liabilities Operating expenses payable 43,471 Payables for redemption of units 908, ,271 Net Assets $ 209,428,501 Net Assets per Class Class D $ 209,428,501 $ 209,428,501 Number of Units Issued and Outstanding (Note 8) Class D 20,028,954 Net Assets per Unit Class D $ Investments at Cost $ 202,557,101 Approved by BlackRock Asset Management Canada Limited, Manager of the Funds Eric Léveillé, Director Noel Archard, Director The accompanying notes are an integral part of the financial statements. 308

309 BlackRock CDN Global Infrastructure Equity Index Fund (Note 1) Statement of Operations For the Period Ended December 31 Revenue Dividend income $ 2,845,520 Interest income 2,029 Foreign exchange loss (4,578) Withholding taxes (334,813) ,508,158 Expenses Custodian fees 38,065 Fund accounting expenses 25,841 Unitholder communication s 147 Audit fees 11,246 Securities filing fees 1,796 Independent review committee fees 14 Other operating expenses 20,806 Net Investment Income for the Period 2,410,243 Gain on Investments Net realized gain on sale of investments 30,154 Transaction s (Note 2,13) (80,022) Net change in unrealized appreciation in of investments 5,859,174 Net Gain on Investments 5,809,306 Increase in Net Assets from Operations $ 8,219,549 Increase in Net Assets from Operations per Class Class D $ 8,219,549 97,915 $ 8,219,549 Increase in Net Assets from Operations per Unit Class D $ 0.53 Statement of Changes in Net Assets For the Period Ended December Fund Class D Net Assets - Beginning of Period $ - $ - Increase in Net Assets from Operations 8,219,549 8,219,549 Capital Transactions Proceeds from issue of units 219,097, ,097,431 Reinvestment of distributions 1,751,526 1,751,526 Redemption of units (17,888,479) (17,888,479) Net capital transactions 202,960, ,960,478 Distributions From net investment income (1,624,026) (1,624,026) From capital gains (127,500) (127,500) Total distributions (1,751,526) (1,751,526) Increase in Net Assets for the Period 209,428, ,428,501 Net Assets - End of Period $ 209,428,501 $ 209,428,501 The accompanying notes are an integral part of the financial statements. 309

310 BlackRock CDN Global Infrastructure Equity Index Fund Common Stocks Energy 27.6% Atmos Energy Corp. 31,885 1,137 1,115 Cheniere Energy, Inc. 79,174 1,146 1,474 Enbridge Energy Management, LLC 11, Enbridge, Inc. 283,526 11,451 12,192 Keyera Corp. 27,271 1,254 1,338 Kinder Morgan Management, LLC 34,132 2,591 2,564 Kinder Morgan, Inc. 224,409 7,882 7,894 Pembina Pipeline Corp. 103,307 2,805 2,937 SemGroup Corp.-Class A 14, Spectra Energy Corp. 236,016 7,044 6,432 Targa Resources Corp. 10, TransCanada Corp. 249,885 11,354 11,737 Veresen, Inc. 70, Williams Cos., Inc. 238,854 7,731 7,784 56,666 57,761 Financials 6.5% 3i Infrastructure PLC 311, American Tower Corp. REIT 140,142 10,157 10,778 Groupe Bruxelles Lambert SA 198,244 1,427 1,519 HICL Infrastructure Co., Ltd. 312, ,798 13,537 Industrials 11.4% Abertis Infraestructuras SA 121,035 1,596 1,970 Aeroports de Paris 13,997 1,099 1,070 Atlantia SpA 114,700 1,621 2,058 Auckland International Airport, Ltd. 362, Beijing Capital International Airport Co., Ltd. 516, Beijing Ent., Ltd. 164,000 1,065 1,063 China Merchants International Co., Ltd. 406,000 1,249 1,293 DP World, Ltd. 58, Ferrovial SA 142,689 1,679 2,094 Flughafen Zuerich AG 1, Fraport AG 12, Global Ports Investments PLC-GDR 14, Grupo Aeroportuario del Pacifico SAB de CV-ADR 13, Grupo Aeroportuario del Sureste SAB de CV-ADR 6, Hamburger Hafen Und Logistik AG 9, Hutchison Port Trust-UNIT 1,818,000 1,382 1,421 Japan Airport Terminal Co., Ltd. 25, Jiangsu Expressway Co., Ltd. 428, Koninklijke Vopak NV 23,510 1,551 1,639 Macquarie Atlas Roads Group 142, Societa Iniziative Autostradali E Servizi SpA 21, Industrials (continued) Sydney Airport 262, Transurban Group 515,862 3,288 3,248 Westshore Terminals Investment Corp. 22, Zhejiang Expressway Co., Ltd. 502, ,942 24,020 Telecommunication Services 8.0% Crown Castle International Corp. 103,957 6,567 7,468 Eutelsat Communications 51,379 1,592 1,692 SBA Communications Corp.-Class A 44,813 2,755 3,169 SES 157,257 4,028 4,468 14,942 16,797 Utilities 45.4% AGL Resources, Inc. 41,561 1,670 1,653 American States Water Co. 6, American Water Works Co., Inc. 62,405 2,274 2,306 APA Group 288,641 1,499 1,644 Aqua America, Inc. 49,412 1,255 1,251 Brookfield Infrastructure Partners, LP 50,778 1,704 1,776 California Water Service Group 14, Centerpoint Energy, Inc. 151,179 3,149 2,896 CH Energy Group, Inc. 5, China Gas, Ltd. 864, China Resources Gas Group, Ltd. 254, Cia De Saneamento Basico Do Estado De Sao Paulo-ADR 20,145 1,686 1,676 Consolidated Edison, Inc. 103,976 6,466 5,748 Duet Group 369, Elia System Operator SA 9, Enagas 67,541 1,227 1,417 ENN Energy, Ltd. 262,000 1,031 1,134 Fortis, Inc. 67,790 2,269 2,314 Hong Kong & China Gas 1,856,000 4,479 5,019 ITC Corp. 18,213 1,362 1,395 Laclede Group, Inc. 7, National Grid PLC 1,289,548 13,820 14,662 New Jersey Resources Corp. 14, NiSource, Inc. 109,566 2,756 2,714 Northeast Utilities 111,010 4,368 4,319 Northwest Natural Gas Co. 9, NorthWestern Corp. 13, ONEOK, Inc. 72,535 3,267 3,087 Pennon Group PLC 128,306 1,500 1,298 Pepco, Inc. 80,947 1,597 1,581 PG&E Corp. 152,419 6,802 6,098 Piedmont Natural Gas Co., Inc. 25, Red Electrica de Espana 38,274 1,614 1,862 Sempra Energy 79,802 5,526 5,634 The accompanying notes are an integral part of the financial statements. 310

311 BlackRock CDN Global Infrastructure Equity Index Fund Utilities (continued) Severn Trent PLC 84,288 2,264 2,147 Snam SpA 598,076 2,496 2,759 Southwest Gas Corp. 16, SP Ausnet 567, Spark Infrastructure Group 418, Terna SpA 459,985 1,595 1,825 Toho Gas Co., Ltd. 183,000 1, Tokyo Gas Co., Ltd. 858,000 4,423 3,893 UIL Corp. 17, United Utilities Group PLC 241,197 2,635 2,625 WGL, Inc. 18, ,063 95,019 Total Common Stocks 201, ,134 Foreign Index Equivalents 0.6% Australian Infrastructure Fund 217, ishares S&P Global Infrastructure Index Fund 17, Total Foreign Index Equivalents 1,222 1,282 Transaction Costs (Note 2) (76) Total Investments 202, ,416 Other Assets and Liabilities 0.5% 1,013 Net Assets 209,429 Portfolio Concentration (as a percentage of Net Assets) As at Portfolio by Category December 31, 2012 (%) Energy 27.6 Financials 6.5 Industrials 11.4 Telecommunication Services 8.0 Utilities 45.4 Foreign Index Equivalents 0.6 Other Assets and Liabilities 0.5 The accompanying notes are an integral part of the financial statements. 311

312 BlackRock CDN Emerging Markets Fundamental Index Fund Statement of Net Assets As at December Assets Investments - at fair (Note 2) $ 95,623,895 $ 24,916,919 Cash 2,308, ,263 Dividends receivable 103,518 29,569 98,035,638 25,275,751 Liabilities Payables for investment purchases 1,149,977 - Distributions payable 2,433,743 1,018,446 3,583,720 1,018,446 Net Assets $ 94,451,918 $ 24,257,305 Number of Units Issued and Outstanding (Note 8) 4,882,700 1,368,828 Net Assets per Unit $ $ Investments at Cost $ 94,962,506 $ 28,701,104 Approved by BlackRock Asset Management Canada Limited, Manager of the Funds Eric Léveillé, Director Noel Archard, Director The accompanying notes are an integral part of the financial statements. 312

313 BlackRock CDN Emerging Markets Fundamental Index Fund Statement of Operations For the Years Ended December Revenue Dividend income $ 2,827,896 $ 1,111,055 Interest income Securities lending income 14,788 - Foreign exchange loss (97,961) (58,244) Other income - 1,024 Withholding taxes (346,282) (110,659) 2,398, ,330 Expenses Interest and bank charges 1, Other operating expenses , Net Investment Income for the Year 2,397, ,630 Gain (Loss) on Investments Net realized gain (loss) on sale of investments 296, ,220 Transaction s (Note 2,13) (112,647) (125,514) Net change in unrealized appreciation (depreciation) in of investments 4,445,574 (6,331,662) Net change in unrealized appreciation/depreciation on foreign exchange transactions 9,374 (3,946) Net Gain (Loss) on Investments 4,639,200 (6,078,902) Increase in Net Assets from Operations $ 7,036,239 $ (5,136,272) Increase (Decrease) in Net Assets from Operations per Unit $ 2.04 $ (3.75) Statement of Changes in Net Assets For the Years Ended December Net Assets - Beginning of Year $ 24,257,305 $ 30,395,882 Increase (Decrease) in Net Assets from Operations 7,036,239 (5,136,272) Capital Transactions Proceeds from issue of units 66,360,665 - Reinvestment of distributions 95, ,417 Redemption of units (768,548) (794) Net capital transactions 65,687, ,623 Distributions From net investment income (2,433,743) (1,018,446) From capital gains (95,245) (232,482) Total distributions (2,528,988) (1,250,928) Increase (Decrease) in Net Assets for the Year 70,194,613 (6,138,577) Net Assets - End of Year $ 94,451,918 $ 24,257,305 The accompanying notes are an integral part of the financial statements. 313

314 BlackRock CDN Emerging Markets Fundamental Index Fund Common Stocks Consumer Discretionary 2.7% Bajaj Auto Ltd. 1, Cheng Shin Rubber Industry Co. Ltd. 42, Cyrela Brazil Realty SA Empreendimentos e Participações 8, Dongfeng Motor Corp., Class H 55, Far Eastern Department Stores Ltd. 51, Formosa Taffeta Co. Ltd. 95, Foschini Ltd. 4, Gafisa SA 24, Genting BHD 29, Genting Malaysia BHD 28, Guangzhou Automobile Group Co. Ltd., Class H 78, Hero MotoCorp Ltd Imperial Ltd. 8, JD Group Ltd. 13, Lojas Americanas SA 1, Lojas Americanas SA, Preferred 6, Mahindra & Mahindra Ltd. 1, Mercuries & Associates Ltd. 68, Naspers Ltd., Series N 4, PDG Realty SA Empreendimentos e Participações 29, Pou Chen Corp. 225, PT Astra International TBK 135, Steinhoff International Ltd. 54, Tata Motors Ltd. 7, Tatung Co. Ltd. 440, Truworths International Ltd. 6, UMW BHD 32, Woolworths Ltd. 16, ,313 2,579 Consumer Staples 3.7% Anadolu Efes Biracilik ve Malt Sanayii AS 3, Balrampur Chini Mills Ltd. 77, BRF - Brasil Foods SA 13, British American Tobacco Malaysia Berhad 1, China Resources Enterprise Ltd. 42, Coca-Cola FEMSA SAB de CV 12, Companhia Brasileira de Distribuicao Grupo Pao de Acucar, Perference A Shares 2, Companhia de Bebidas das Americas 1, Companhia de Bebidas das Américas, Preferred 11, Grupo Bimbo SAB de CV, Series A 58, Consumer Staples (continued) Hindustan Unilever Ltd. 3, IOI Corp. BHD 44, ITC Ltd. 23, JBS SA 28, Kimberly-Clark de Mexico SAB de CV, Series A 41, Kuala Lumpur Kepong Berhad 2, Marfrig Frigorificos e Comercio de Alimentos SA 10, Natura Cosmeticos SA 4, Pick n Pay Stores Ltd. 10, PPB Group Berhad 6, President Chain Store Corp. 18, Shoprite Ltd. 9, Souza Cruz SA 7, Spar Group Ltd. (The) 4, Tiger Brands Ltd. 2, Uni-President Enterprises Corp. 178, Wal-Mart de Mexico SA de CV, Series V 102, ,026 3,507 Energy 19.1% Bharat Petroleum Corp. Ltd. 21, China Coal Energy Co., Class H 129, China Petroleum and Chemical Corp. (Sinopec), Series H 1,026,000 1,016 1,157 China Shenhua Energy Co. Ltd. 91, CNOOC Ltd. 419, Cosan SA Industria e Comercio 4, Formosa Petrochemical Corp. 70, Grupa Lotos SA 11, Hindustan Petroleum Corp. Ltd. 33, Indian Oil Corp. Ltd. 22, IRPC Public Co. Ltd. 695, MOL Hungarian Oil and Gas Co. PLC 4, Novatek OAO, GDR 1, OAO Gazprom, ADR 202,546 2,365 1,907 OAO LUKOIL, ADR 29,564 1,797 1,946 OAO Tatneft, GDR 10, Oil and Natural Gas Corp. Ltd. 36, OJSC Rosneft Oil Co., GDR 58, PetroChina Co. Ltd., Series H 844,000 1,166 1,186 Petróleo Brasileiro SA 161,600 2,054 1,533 Petróleo Brasileiro SA, Preferred 235,900 2,839 2,237 Polish Oil & Gas 95, Polski Koncern Naftowy Orlen SA 38, PT Bumi Resources TBK 300, PTT Exploration and Production Public Co. Ltd. 41, The accompanying notes are an integral part of the financial statements. 314

315 BlackRock CDN Emerging Markets Fundamental Index Fund Energy (continued) PTT Public Co. Ltd. 43, Reliance Industries Ltd. 37, Sasol Ltd. 19, Surgutneftegaz, ADR 35, Thai Oil Public Co. Ltd. 55, Tupras-Turkiye Petrol Rafinerileri AS 9, Ultrapar Participações SA 10, Yanzhou Coal Mining Co. Ltd., Class H 48, ,811 18,006 Financials 34.5% ABSA Group Ltd. 15, African Bank Investments Ltd. 30, Agricultural Bank of China Ltd. 685, Akbank T.A.S. 50, AMMB BHD 30, Axis Bank Ltd. 3, Banco Bradesco SA, Preferred 70,270 1,136 1,202 Banco de Chile, ADR 1, Banco do Brasil SA 62, Banco do Estado do Rio Grande do Sul SA, Preferred, Class B 6, Banco Santander (Brasil) SA 42, Banco Santander Chile SA, ADR 3, Bangkok Bank Public Co. Ltd., Registered 9, Bank of China Ltd., Class H 3,579,000 1,551 1,595 Bank of Communications Co. Ltd., Class H 313, Bank Pekao SA 3, BM&F BOVESPA SA 56, BR Malls Participações SA 5, Cathay Financial Holding Co. Ltd. 301, Chang Hwa Commercial Bank 151, China Citic Bank, Class H 285, China Construction Bank Corp., Class H 2,495,000 1,911 1,993 China Development Financial Holding Corp. 528, China Life Insurance Co. Ltd., Series H 179, China Merchants Bank Co. Ltd. 86, China Minsheng Banking Corp. Ltd., Series H 99, China Overseas Land & Investment Ltd. 76, China Pacific Insurance (Group) Co. Ltd., Class H 34, China Resources Land Ltd. 42, Chinatrust Financial Holding Co. Ltd. 392, Financials (continued) CIMB Group BHD 62, Commercial International Bank, GDR 6, DLF Ltd. 7, First Financial Holding Co. Ltd. 224, FirstRand Ltd. 151, Fubon Financial Holding Co. Ltd. 281, Growthpoint Properties Ltd. 43, Haci Omer Sabanci Holding AS 23, HDFC Bank Ltd. 3, Housing Development Finance Corp. Ltd. 4, Hua Nan Financial Co. Ltd. 225, ICICI Bank Ltd. 6, Industrial and Commercial Bank of China, Class H 2,128,000 1,428 1,504 ishares MSCI Chile Investable Market Index Fund 15, ishares MSCI Indonesia Investable Market Index Fund 38,483 1,153 1,159 ishares MSCI Malaysia Index Fund 105,314 1,515 1,586 ishares S&P India Nifty 50 Index Fund 106,926 2,403 2,651 Itau Unibanco Holding SA 6, Itau Unibanco Holding SA, Preferred 74,400 1,244 1,208 Itausa-Investimentos Itau SA, Preferred, Registered 52, Kasikornbank Public Co. Ltd. 26, Komercni Banka AS Liberty Ltd. 8, Malayan Banking BHD 89, Market Vectors Egypt Index ETF 30, Market Vectors Russia ETF 90,865 2,601 2,710 Mega Financial Holding Co. Ltd. 356, MMI Ltd. 42, Nedbank Group Ltd. 10, OTP Bank Nyrt. 25, PICC Property and Casualty Co. Ltd., Series H 58, Ping An Insurance (Group) Co. of China Ltd. 36, Powszechna Kasa Oszczednosci Bank Polski SA 21, Powszechny Zaklad Ubezpieczen SA 2, PT Bank Central Asia TBK 46, PT Bank Mandiri 51, PT Bank Rakyat Indonesia (Persero) TBK 58, Public Bank BHD 68, Punjab National Bank Ltd. 5, The accompanying notes are an integral part of the financial statements. 315

316 BlackRock CDN Emerging Markets Fundamental Index Fund Financials (continued) Remgro Ltd. 12, Sanlam Ltd. 96, Sberbank of Russia, ADR 18, Sberbank of Russia, ADR 14, Shin Kong Financial Holding Co. Ltd. 334, Siam Commercial Bank Public Co. Ltd. 27, Sino-Ocean Land Ltd. 186, SinoPac Co. 308, Standard Bank Group Ltd. 66, State Bank of India 2, Sul America SA 7, Taishin Financial Co. Ltd. 420, Taiwan Cooperative Financial Holding 197, Turkiye Garanti Bankasi AS 43, Turkiye Halk Bankasi AS 15, Turkiye Is Bankasi, Series C 89, Turkiye Vakiflar Bankasi T.A.O., Class D 46, VTB Bank, GDR 56, Yapi ve Kredi Bankasi AS 56, Yuanta Financial Holding Co. Ltd. 240, ,826 32,591 Health Care 0.3% Aspen Pharmacare Ltd. 8, Gedeon Richter Rt Network Healthcare Ltd. 50, Industrials 5.0% Alfa SA, Series A 100, All America Latina Logistica 18, Aveng Ltd. 28, Barloworld Ltd. 15, Beijing Enterprises Ltd. 15, Bharat Heavy Electricals Ltd. 7, Bidvest Group Ltd. 13, CCR SA 31, China Communications Construction Co. Ltd., Class H 211, China COSCO Co. Ltd., Class H 147, China International Marine Containers (Group) Co.Ltd 50, China Merchants International Co. Ltd. 28, China Railway Construction Corp., Class H 170, China Railway Group Ltd., Class H 336, Citic Pacific Ltd. 73, Industrials (continued) Dogan Sirketler Grubu AS 179, Embraer SA 28, Empresas ICA SAB de CV 52, Far Eastern New Century Corp. 173, Grindrod Ltd. 43, Grupo Aeroportuario del Pacifico SA de CV 24, IJM Corp. BHD 19, Koc Holding AS 89, Larsen & Toubro Ltd. 4, Latam Airlines Group SA, ADR 1, Murray & Roberts Ltd. 28, Orascom Construction Industries, GDR PT United Tractors TBK 10, Reunert Ltd. 9, Shanghai Industrial Ltd. 24, Sime Darby Berhad 66, Turk Hava Yollari Anonim Ortakligi 96, Walsin Lihwa Corp. 330, ,212 4,710 Information Technology 10.5% Acer Inc. 248, Advanced Semiconductor Engineering Inc. 295, Asustek Computer Inc. 48, AU Optronics Corp. 1,146, Chimei Innolux Corp. 556, Cielo SA 3, Compal Electronics Inc. 387, Coretronic Corp. 92, Delta Electronics Inc. 100, Foxconn Technology Co. Ltd. 27, HannStar Display Corp. 275, Hon Hai Precision Industry Co. Ltd. 493,682 1,605 1,503 HTC Corp. 20, Infosys Technologies Ltd. 2, Inventec Co. Ltd. 240, Lenovo Group Ltd. 260, Lite-On Technology Corp. 180, Macronix International Co. Ltd. 254, MediaTek Inc. 45, Mstar Semiconductor Inc. 14, Pegatron Corp. 118, Powertech Technology Inc. 51, Quanta Computer Inc. 179, Siliconware Precision Industries Co. 193, Synnex Technology International Corp. 55, The accompanying notes are an integral part of the financial statements. 316

317 BlackRock CDN Emerging Markets Fundamental Index Fund Information Technology (continued) Taiwan Semiconductor Manufacturing Co. Ltd. 754,000 2,013 2,504 Unimicron Technology Corp. 74, United Microelectronics Corp. 782, Wistron Corp. 178, WPG Co. Ltd. 85, ,234 9,916 Materials 11.5% Aluminum Corp. of China Ltd., Series H 130, Angang New Steel Co. Ltd., Class H 98, Anglo American Platinum Ltd. 2, AngloGold Ashanti Ltd. 4, Asia Cement Corp. 102, Braskem SA, Preferred, Series A 11, China National Building Material Co. Ltd., Class H 60, China Steel Corp. 581, Companhia Siderurgica Nacional SA 58, Eregli Demir ve Celik Fabrikalari TAS 77, Fibria Celulose SA 12, Formosa Chemicals & Fibre Corp. 177, Formosa Plastics Corp. 222, Gerdau SA 7, Gerdau SA, Preferred 43, Gold Fields Ltd. 18, Grasim Industries Ltd. 1, Harmony Gold Mining Co. Ltd. 7, Hindalco Industries Ltd. 72, Impala Platinum Ltd. 27, Jiangxi Copper Co. Ltd., Series H 32, JSW Steel Ltd. 3, KGHM Polska Miedz SA 8, Klabin SA, Preferred 16, Kumba Iron Ore Ltd. 1, Magnitogorsk Iron & Steel Works, GDR, Registered 36, Metalurgica Gerdau SA, Preferred 23, Mittal Steel South Africa Ltd. 11, Mondi Ltd. 9, Nampak Ltd. 22, Nan Ya Plastics Corp. 333, National Aluminium Co. Ltd. 10, Novolipetsk Steel, GDR 10, OJSC MMC Norilsk Nickel, ADR 12, Petronas Chemicals Group BHD 20, PPC Ltd. 20, PTT Global Chemical PCL 57, Sappi Ltd. 46, Materials (continued) Severstal, GDR, Registered 11, Siam Cement Public Co. Ltd. (The) 6, Sociedad Quimica y Minera de Chile SA, ADR Steel Authority of India Ltd. 17, Sterlite Industries (India) Ltd. 10, Suzano Bahia Sul Papel e Celulose SA 22, Taiwan Cement Corp. 170, Tata Chemicals Ltd. 5, Tata Steel Ltd. 9, Usinas Siderurgicas de Minas Gerais SA 20, Usinas Siderurgicas de Minas Gerais SA, Preferred, Series A 54, Vale SA 46,900 1, Vale SA, Preferred, Series A 60,800 1,338 1,208 11,496 10,840 Telecommunication Services 10.6% Advanced Info Service Public Co. Ltd. 40, America Movil SA de CV, Series L, BHD 1,309,428 1,665 1,495 Axiata Group BHD 83, Bharti Airtel Ltd. 16, China Mobile Ltd. 215,100 2,284 2,493 China Telecom Corp. Ltd., Series H 728, China Unicom Ltd. 281, Chunghwa Telecom Co. Ltd. 184, DiGi.Com Berhad 83, Far EasTone Telecommunications Co. Ltd. 61, Magyar Telekom Telecommunications PLC, Registered 57, Maxis Berhad 21, Mobile TeleSystems OJSC, ADR 16, MTN Group Ltd. 50, ,061 Oi SA 4, Oi SA, Preferred 22, Orascom Telecom Holding S.A.E., GDR 23, Orascom Telecom Media and Technology Holding SAE, GDR 16, PT Telekomunikasi Indonesia 126, Reliance Communications Ltd. 42, Rostelekom ADR 13, Taiwan Mobile Co. Ltd. 48, Telefonica Brasil SA, Preferred 9, Telefonica Czech Republic AS 11, Telekom Malaysia BHD 31, The accompanying notes are an integral part of the financial statements. 317

318 BlackRock CDN Emerging Markets Fundamental Index Fund Telecommunication Services (continued) Telekomunikacja Polska SA 60, Telkom SA SOC Ltd. 70, Tim Participações SA 23, Turk Telekomunikasyon AS 25, Turkcell Iletisim Hizmetleri AS 13, Vodacom Group Ltd. 12, ,847 10,011 Utilities 3.3% AES Tiete SA 2, AES Tiete SA, Preferred 4, Centrais Elétricas Brasileiras SA 52, Centrais Elétricas Brasileiras SA, Preferred, Class B 22, CEZ AS 9, China Resources Power Co. Ltd. 58, Cia Saneamento Basico de Sao Paulo NPV 2, Companhia de Saneamento de Minas Gerais - Copasa MG 2, Companhia Energetica de Minas Gerais 3, Companhia Energetica de Minas Gerais, Preferred 19, Companhia Energética de São Paulo, Preferred, Class B 3, Companhia Paranaense de Energia- Copel, Preferred, Series B 6, EDP - Energias do Brasil SA 12, Eletropaulo Metropolitana SA, Preferred 9, Empresa Nacional de Electricidad SA, ADR 3, Enersis SA, ADR 10, Federal Hydrogenerating Co. JSC ADR 92, Gail (India) Ltd. 5, Huaneng Power International Inc., Series H 182, Light SA 6, NTPC Ltd. 29, Petronas Gas Berhad 4, Polska Grupa Energetyczna SA 29, PT Perusahaan Gas Negara 51, Reliance Energy Ltd. 3, Tauron Polska Energia SA 114, Tenaga Nasional BHD 27, Tractebel Energia SA 7, Utilities (continued) YTL Power International BHD 88, ,024 3,104 Total Common Stocks 95,095 95,624 Transaction Costs (Note 2) (132) Total Investments 94,963 95,624 Other Assets and Liabilities (1.2)% (1,172) Net Assets 94,452 Portfolio Concentration (as percentage of Net Assets) As at December 31, 2012 As at December 31, 2011 Portfolio Category (%) (%) Consumer Discretionary Consumer Staples Energy Financials Health Care Industrials Information Technology Materials Telecommunication Services Utilities Other Assets and Liabilities (1.2) (2.7) The accompanying notes are an integral part of the financial statements. 318

319 Notes to Financial Statements December 31, Trust agreements The following BlackRock Asset Management Canada Limited ( BlackRock Canada ) funds (each, a Fund, collectively, the Funds ) are open-ended unit trusts, each formed under the laws of the Province of Ontario. The Funds are governed by a master declaration of trust and supplemental declarations which are amended from time to time except for the BlackRock CDN Emerging Markets Fundamental Index Fund, which was governed by a separate declaration of trust during the period. Each of the Funds, except for the BlackRock CDN Emerging Markets Fundamental Index Fund, was established on the dates noted below: BlackRock Canadian Equity Index Fund October 26, 1999 BlackRock Canadian Equity Ex-Trusts Index Fund November 11, 2005 BlackRock CDN MSCI Canada IMI Index Fund October 30, 2009 BlackRock CDN US Equity Index Non-Taxable Fund December 15, 1998 BlackRock CDN US Equity Index Plus Non-Taxable Fund May 14, 2010 BlackRock CDN US Equity Index Hedged Non-Taxable Fund July 22, 2005 BlackRock CDN US Equity Index Fund January 17, 2000 BlackRock CDN US Alpha Tilts Non-Taxable Fund February 22, 2001 BlackRock CDN US Alpha Tilts Hedged Non-Taxable Fund July 22, 2005 BlackRock CDN Russell 3000 Index Non-Taxable Fund November 1, 2010 BlackRock Active Canadian Equity Fund September 1, 1997 BlackRock Active Canadian Equity Ex-Income Trusts Fund November 11, 2005 BlackRock Active Canadian Equity DC Fund December 31, 2001 BlackRock Active Canadian Equity Small Cap Fund November 3, 1998 BlackRock Canada Alpha Advantage Fund September 30, 2011 BlackRock Canada Universe Bond Index Fund October 26, 1999 BlackRock Canada ex-bbb Universe Bond Index Fund April 1, 2002 BlackRock Canada Real Return Bond Index Fund July 6, 1998 BlackRock Canada Long Bond Index Fund July 6, 1998 BlackRock Canada Long Government Bond Index Fund November 30, 2011 BlackRock Canada All Government Bond Index Fund May 10, 2009 BlackRock Canada Credit-Screened Bond Index Fund May 10, 2009 BlackRock Canada CoreActive Universe Bond Fund January 31, 2001 BlackRock Canada CorePlus Long Bond Fund December 21, 2006 BlackRock Canada CorePlus Universe Bond Fund December 21, 2006 BlackRock Canada Levered Long Bond Index Fund August 31, 2011 BlackRock Canada Levered Real Return Bond Index Fund August 31, 2011 BlackRock Balanced Moderate Index DC Fund June 30, 1999 BlackRock Balanced Conservative Index DC Fund August 1, 1999 BlackRock Balanced Aggressive Index DC Fund August 1, 1999 BlackRock CDN LifePath Retirement Index Fund I March 9, 2007 BlackRock CDN LifePath Index 2010 Retirement Fund March 9, 2007 BlackRock CDN LifePath 2015 Index Fund August 17, 2007 BlackRock CDN LifePath 2020 Index Fund March 9, 2007 BlackRock CDN LifePath 2025 Index Fund August 17, 2007 BlackRock CDN LifePath 2030 Index Fund March 9, 2007 BlackRock CDN LifePath 2035 Index Fund August 17, 2007 BlackRock CDN LifePath 2040 Index Fund March 9, 2007 BlackRock CDN LifePath 2045 Index Fund April 30, 2008 BlackRock CDN LifePath 2050 Index Fund July 31, 2012 BlackRock Balanced Active Fund January 31, 1997 BlackRock CDN Global Market Selection Fund October 1, 2001 BlackRock CDN Short Term Index Fund September 30, 1997 BlackRock CDN MSCI EAFE Equity Index Fund April 15, 1999 BlackRock CDN MSCI EAFE Index Hedged Fund July 22, 2005 BlackRock CDN MSCI ACWI ex-canada Index Fund August 17, 2007 BlackRock CDN MSCI Emerging Markets Index Fund April 5, 2010 BlackRock CDN MSCI EAFE Index Plus Fund March 23,

320 Notes to Financial Statements December 31, 2012 BlackRock CDN Global Equity Focus Fund September 10, 2010 BlackRock CDN Global Developed Real Estate Index Fund July 31, 2012 BlackRock CDN Global Infrastructure Equity Index Fund July 31, 2012 BlackRock CDN Emerging Markets Fundamental Index Fund January 4, 2013 (see 1a below) The Statements of Investment Portfolio are as at December 31, The Statements of Net Assets are as at December 31, 2012 and December 31, 2011, except for Funds that commenced operations during the reporting period, in which case the Statements of Net Assets are as at December 31, The Statements of Operations and the Statements of Changes in Net Assets and, where applicable, the Statements of Cash Flows are for the years then ended, except for the Funds established during either year, in which case the information provided for the year of inception relates to the period from commencement of operations to December 31 of the applicable year. a. Manager and Trustee: BlackRock Canada is the manager and trustee of the Funds. BlackRock Canada is responsible for the day-to-day administration of the Funds. State Street Trust Company Canada is the custodian and record-keeper of the Funds, except for BlackRock CDN Emerging Markets Fundamental Index Fund. CIBC Mellon Trust Company was the custodian and record-keeper of the BlackRock CDN Emerging Markets Fundamental Index Fund during the period. Prior to January 4, 2013, the name of the BlackRock CDN Emerging Markets Fundamental Index Fund was Claymore Emerging Markets Fundamental Index Fund and the fund was governed by a declaration of trust established on October 15, On January 4, 2013, that declaration of trust was amended, restated and incorporated into the master declaration of trust governing the Funds, the fund changed its name to BlackRock CDN Emerging Markets Fundamental Index Fund and State Street Trust Company Canada became the custodian and record-keeper of the fund. b. Funds that issued units for the first time during the year 2011 and 2012: Fund Commencement Date BlackRock Canada Levered Long Bond Index Fund September 30, 2011 BlackRock Canada Levered Real Return Bond Index Fund September 30, 2011 BlackRock Canada Alpha Advantage Fund October 31, 2011 BlackRock Canada Long Government Bond Index Fund December 30, 2011 BlackRock CDN LifePath 2050 Index Fund July 31, 2012 BlackRock CDN Global Developed Real Estate Index Fund July 31, 2012 BlackRock CDN Global Infrastructure Equity Index Fund July 31, 2012 c. Funds that redeemed all units during the period 2012: Fund Redemption Date BlackRock CDN Russell 3000 Index Hedged Non-Taxable Fund May 31, 2012 BlackRock Canadian Equity Ex-Trusts Index Fund December 31, 2012 d. Fund that redeemed all units as at April 30, 2010 and re-issued units during the year 2011: Fund Recommencement Date BlackRock Canada CorePlus Universe Bond Fund October 27, 2011 e. Currency codes that are used throughout this report are as follows: AUD Australian Dollar EGP Egyptian Pound KRW South Korean Won RUB New Russian Ruble BRL Brazilian Real EUR Euro MAD Moroccan Dirham SEK Swedish Krona CAD Canadian Dollar GBP British Pound Sterling MXN Mexican Peso SGD Singapore Dollar CHF Swiss Franc HKD Hong Kong Dollar MYR Malaysian Ringgit THB Thailand Baht CLP Chilean Peso HUF Hungarian Forint NOK Norwegian Krona TRY Turkish Lira CNY Yuan Renminbi IDR Indonesian Rupiah NZD New Zealand Dollar TWD Taiwan Dollar COP Colombian Peso ILS Israeli Shekel PEN Peruvian Sol USD United States Dollar CZK Czech Koruna INR Indian Rupee PHP Philippine Peso ZAR South African Rand DKK Danish Krone JPY Japanese Yen PLN Polish Zloty 320

321 Notes to Financial Statements December 31, Summary of significant accounting policies These financial statements, prepared in accordance with Canadian generally accepted accounting principles ( GAAP ), include estimates and assumptions made by BlackRock Canada that may affect the reported amounts of assets, liabilities, income, expenses and changes in net assets during the reporting period. Actual results could differ from those estimates. The following is a summary of significant accounting policies followed by the Funds: a. Valuation of investments Investments held by the Funds have been categorized as held for trading and are stated at fair. Investments at fair on the valuation date are determined as follows: Securities listed upon a recognized public stock exchange are d at their bid prices for long positions and at their ask prices for the short positions. Fixed income securities are d at their bid quotations for long positions and at their ask quotations for short positions by sources independent of BlackRock Canada. Money market securities are d using plus accrued interest, which approximates fair. Funds invested in other funds that are not listed on a public exchange are d using the net asset per unit of the underlying fund. Investments in securities having no quoted market prices or where, in the opinion of BlackRock Canada, a market quotation for a security is inaccurate, unreliable or not readily available, will be priced at fair using a valuation technique. Valuation techniques may include valuation of similar instruments using arm s length market transactions, discounted cash flow analysis, and/ or models, as may be determined by BlackRock Canada from time to time. The Funds are required to calculate the net assets per unit for the purposes of the financial statements in accordance with Canadian GAAP, which may be different from the method by which net asset per unit is calculated for the purpose of purchase and redemption of units of the Funds. Under Canadian GAAP, financial instruments that are quoted in active markets shall be d based on the bid price for long positions and the ask price for short positions, as compared to the net asset per unit method for unitholder transactions in which such securities would be d using the closing price. As a result, the net assets per unit presented in the financial statements (the Net Assets per unit ) may differ from the Net Asset Value per unit (the Net Asset Value per unit ). The comparison between the Net Assets per unit and the Net Asset Value per unit as at December 31, 2012 and December 31, 2011 is detailed in Note 11. b. Cash and bank overdraft Cash represents cash held by the Funds, and bank overdrafts are short-term borrowings. All are carried at fair. c. Other assets and liabilities Cash, interest receivable, securities lending income receivable, dividends receivable, tax reclaim receivable, receivables from issue of units, receivable for investment sales, margin due from/to brokers, unrealized gain (loss) on forward currency contracts, operating expenses payable, payables for redemption of units, payables for investment purchases and payables for repurchase agreements are recorded at in the financial statements. Due to their short-term duration, approximate fair for these assets and liabilities. d. Investment transactions and income recognition Investment transactions are accounted for on a trade date basis. Realized gains and losses and unrealized appreciation and depreciation from investment transactions are calculated on an average basis. Interest income is recorded as revenue on an accrual basis. Dividend income is recorded on the ex-dividend date. Distributions from underlying funds and income trusts are recorded on the ex-dividend date. e. Futures contracts Certain Funds may invest in futures contracts for the purpose of acting as a substitute for other investments such as equities or bonds. A futures contract obligates the buyer to purchase an asset (or the seller to sell an asset), at a predetermined future date and price. The futures contracts held by the Funds are standardized contracts and are traded on a recognized exchange. On entering into such a contract, the Fund is required to maintain with the broker an amount of cash and/or cash equivalents equal to the minimum initial margin requirements of the exchange on which the contract is traded. Pursuant to the contract, the Fund agrees to receive from, or pay to, the broker an amount of cash equal to the daily fluctuation in the of the contracts held. Such receipts or payments are known as variation margin and recorded by the Fund as investment income (or loss) in the Statement of Operations and in the Statements of Net Assets as margin due to or from brokers. Long futures contracts are d at their bid prices and short futures contracts are d at their ask prices as reported by the exchange on which they are traded. 321

322 Notes to Financial Statements December 31, 2012 f. Forward currency contracts Certain Funds may enter into forward currency contracts to hedge or gain foreign currency exposure. A forward currency contract is an obligation to purchase or sell one currency against another currency, at a future date and price, which has been agreed on by two parties (the Fund and the counterparty). The contracts are traded over-the-counter and not on a recognized exchange. The forward currency contracts are marked-to-market daily using the relevant exchange rates of the underlying currencies and any gains or losses are recorded for financial statement purposes as unrealized appreciation or depreciation until the contract settlement date. When the contracts are closed or delivered on the settlement date, any gains or losses realized are included in the net realized gains (losses) from forward currency contacts in the Statement of Operations. g. Repurchase agreements Certain Funds have financed the acquisition of some investments through the use of repurchase agreements. In a repurchase agreement, the Fund delivers a financial instrument to a counterparty with an agreement to purchase the same financial instrument back from the purchaser at an agreed upon price and date. Repurchase agreements are d daily at par and the of financing is accrued daily and posted as interest expense. h. Translation of foreign currency Foreign currency amounts are expressed in Canadian dollars as follows: (i) market s of investments and other assets at the rate of exchange on each valuation date; and (ii) Purchase and sale of investments, investment income and expenses at the rate of exchange prevailing on the respective dates of such transactions. (iii) Realized and unrealized foreign currency gains or losses on investments are included in the Statements of Operations in net realized gain (loss) on sale of investments and net change in unrealized appreciation (depreciation) in of investments, respectively. Realized and unrealized foreign currency gains or losses on monetary assets and liabilities other than investments denominated in foreign currencies are included in the Statement of Operations in net realized and unrealized gain (loss) on foreign exchange transactions. i. Securities lending income The Funds may lend securities to investment dealers and banks on a collateralized basis. Income is recognized on an accrual basis. j. Real return bonds The par and the base of the real return bonds are adjusted daily by an inflation adjustment. Interest income is accrued on each valuation date based on the inflation adjusted par at that time. The daily change in the inflation adjusted par is recognized as income. At maturity, the bonds will pay their final coupon interest payment plus the cumulative inflation compensation accrued from the original issue date. k. Total return swaps Certain Funds may enter into total return swap contracts for the purpose of gaining exposure to, or managing exposure to index markets. Total return swaps are contracts between parties where, for a fixed period of time, one party pays the total return of a reference asset in exchange for a specific fixed or floating rate payment by the counterparty based on the notional principal equal to the of the reference asset. The periodic payments received or made by the Fund are reported on the Statements of Operations as net realized gain (loss) on total return swaps. Swaps are marked-to-market daily and changes in are recorded as unrealized gains (losses) in of investments. Gains or losses realized upon early termination or settlement of the swap contracts are recorded as net realized gain (loss) on total return swaps. l. Short sales Certain Funds engage in selling securities short. When a Fund sells a security short, an amount equal to the proceeds received is recorded as a liability and is subsequently adjusted to the current market of the securities sold short resulting in an unrealized appreciation or depreciation on securities sold short. Upon closing the position, the differences between the proceeds originally received and the of the securities purchased to close the short position are recognized as a net realized gain (loss) on sale of investments. Dividends for securities sold short are paid to the broker and reflected as an expense on the Statements of Operations. m. Increase (decrease) in net assets from operations per unit The increase (decrease) in net assets from operations per unit is based on the increase (decrease) in net assets from operations, divided by the weighted average number of units outstanding during the year. 322

323 Notes to Financial Statements December 31, 2012 n. Allocation of income and expenses amongst classes Certain Funds are structured with more than one class. Expenses directly attributable to a class are charged to that class. Other income, expenses, gains and losses are allocated to each class proportionately based upon the relative net asset of each class. o. National Instrument Investment Fund Continuous Disclosure ( NI ) Pursuant to NI , as mutual funds that are not reporting issuers, the Funds rely on Part 2.11 Filing Exemption for Mutual Funds that are Non-Reporting Issuers of NI , for the exemption from filing the financial statements with the securities regulators. p. Transaction s Transaction s, such as commissions incurred in the purchase and sale of securities by the Fund are expensed and are included in the Statements of Operations. 3. Taxation The Funds qualify as unit trusts as defined in the Income Tax Act (Canada) (the Act ) and accordingly, are not taxed on that portion of taxable income that is paid to or allocated to unitholders. In accordance with the master declaration of trust, the Funds pay sufficient income and net capital gains in order to minimize income taxes. Accordingly, no provisions for income taxes have been made in the financial statements. Net income is paid to unitholders as specified in the Funds master declaration of trust. Net capital gains, when distributed, are paid to unitholders at least annually and, typically, on the last valuation date of the year. a. Suspended losses All Funds are subject to suspended loss rules contained in subsections 40(3.3) and 40(3.4) of the Act. A loss on a disposition of capital property is considered a suspended loss when a Fund acquires a property that is the same or identical to the property sold ( substituted property ), within 30 days before and 30 days after the disposition and the Fund still owns the substituted property 30 days after the original disposition. If a loss is suspended, the loss cannot be deducted against other capital gains. Instead it is deferred until the substituted property is sold and is not acquired within 30 days before and after the sale. The suspended losses for the Funds as at December 31, 2012 are listed below: Fund December 31, 2012 BlackRock Canadian Equity Index Fund $95,538,722 BlackRock CDN MSCI Canada IMI Index Fund 11,861,187 BlackRock CDN US Equity Index Non-Taxable Fund 443,461,102 BlackRock CDN US Equity Index Plus Non-Taxable Fund 3,427,776 BlackRock CDN US Equity Index Hedged Non-Taxable Fund 47,811,485 BlackRock CDN US Equity Index Fund 74,965,443 BlackRock CDN US Alpha Tilts Non-Taxable Fund 157,252,425 BlackRock CDN US Alpha Tilts Hedged Non-Taxable Fund 15,541,407 BlackRock CDN Russell 3000 Index Non-Taxable Fund 3,566,856 BlackRock Active Canadian Equity Fund 96,976,348 BlackRock Active Canadian Equity Ex-Income Trusts Fund 91,627,741 BlackRock Active Canadian Equity DC Fund 24,969,148 BlackRock Active Canadian Equity Small Cap Fund 9,506,884 BlackRock Canada Alpha Advantage Fund 3,897,652 BlackRock Canada Universe Bond Index Fund 10,134,214 BlackRock Canada ex-bbb Universe Bond Index Fund 815,421 BlackRock Canada Real Return Bond Index Fund 1,559,427 BlackRock Canada Long Bond Index Fund 23,694,507 BlackRock Canada Long Government Bond Index Fund 843,549 BlackRock Canada All Government Bond Index Fund 215,415 BlackRock Canada Credit-Screened Bond Index Fund 122,660 BlackRock Canada CoreActive Universe Bond Fund 1,746,372 BlackRock Canada CorePlus Long Bond Fund 323,146 BlackRock Canada CorePlus Universe Bond Fund 33,896 BlackRock Canada Levered Long Bond Index Fund

324 Notes to Financial Statements December 31, 2012 Fund December 31, 2012 BlackRock Balanced Moderate Index DC Fund $7,501,351 BlackRock Balanced Conservative Index DC Fund 3,448,143 BlackRock Balanced Aggressive Index DC Fund 1,203,736 BlackRock CDN LifePath Retirement Index Fund I 723,325 BlackRock CDN LifePath Index 2010 Retirement Fund 3,226,421 BlackRock CDN LifePath 2015 Index Fund 1,492,181 BlackRock CDN LifePath 2020 Index Fund 10,723,073 BlackRock CDN LifePath 2025 Index Fund 1,334,914 BlackRock CDN LifePath 2030 Index Fund 8,573,176 BlackRock CDN LifePath 2035 Index Fund 838,180 BlackRock CDN LifePath 2040 Index Fund 5,598,424 BlackRock CDN LifePath 2045 Index Fund 143,351 BlackRock Balanced Active Fund 2,405,005 BlackRock CDN Global Market Selection Fund 94,077 BlackRock CDN MSCI EAFE Equity Index Fund 262,966,757 BlackRock CDN MSCI EAFE Index Hedged Fund 19,498,361 BlackRock CDN MSCI ACWI ex-canada Index Fund 29,068,876 BlackRock CDN MSCI Emerging Markets Index Fund 411,118 BlackRock CDN MSCI EAFE Index Plus Fund 8,085,427 BlackRock CDN Global Equity Focus Fund 84,299 BlackRock CDN Global Developed Real Estate Index Fund 46,867 BlackRock CDN Global Infrastructure Equity Index Fund 101,019 BlackRock CDN Emerging Markets Fundamental Index Fund 50,075 b. Capital loss carry-forwards The capital losses for income tax purposes may be carried forward indefinitely and applied against future capital gains. The following Funds had capital loss carry-forwards as at December 31, 2012: Fund December 31, 2012 BlackRock Canadian Equity Index Fund $6,498,408 BlackRock Canadian Equity Ex-Trusts Index Fund 7,212,354 BlackRock CDN US Equity Index Non-Taxable Fund 1,012,635,016 BlackRock CDN US Equity Index Hedged Non-Taxable Fund 34,550,263 BlackRock CDN US Equity Index Fund 60,506,225 BlackRock CDN US Alpha Tilts Non-Taxable Fund 372,244,788 BlackRock CDN US Alpha Tilts Hedged Non-Taxable Fund 96,122,057 BlackRock Canada Long Government Bond Index Fund 824,237 BlackRock Canada CoreActive Universe Bond Fund 17,908,548 BlackRock Canada CorePlus Universe Bond Fund 281,777 BlackRock Balanced Moderate Index DC Fund 38,664,644 BlackRock Balanced Aggressive Index DC Fund 10,043,831 BlackRock Balanced Active Fund 3,208,343 BlackRock CDN Short Term Index Fund 3,664 BlackRock CDN MSCI EAFE Equity Index Fund 74,921,448 BlackRock CDN MSCI EAFE Index Hedged Fund 41,535,629 BlackRock CDN MSCI ACWI ex-canada Index Fund 64,853,070 BlackRock CDN MSCI Emerging Markets Index Fund 10,226,941 BlackRock CDN MSCI EAFE Index Plus Fund 753,

325 Notes to Financial Statements December 31, 2012 c. Non-capital loss carry-forwards BlackRock CDN Global Market Selection Fund reported non-capital loss carry-forwards as at December 31, 2012 which may be applied against future taxable income. These losses will expire on December 31 of the year indicated below unless they are applied against taxable income. Fund BlackRock CDN Global Market Selection Fund $40,756 $73,806,585 $35, Futures contracts The table below is a summary of the open futures contracts held by the Funds as at December 31, 2012: Currency No. of Contracts Current Price (CAD) Delivery Date Initial Contract Value Local Currency Initial Contract Value (CAD) Current Contract Market Value (CAD) Total Gain (Loss) on Open Contracts (CAD) BlackRock Canadian Equity Index Fund S&P/TSX 60 INDEX CAD Mar-13 55,835,712 55,835,712 56,596, ,608 Total: BlackRock Canadian Equity Index Fund 56,596, ,608 BlackRock CDN MSCI Canada IMI Index Fund S&P/TSX 60 INDEX CAD Mar-13 9,852,103 9,852,103 10,004, ,297 Total: BlackRock CDN MSCI Canada IMI Index Fund 10,004, ,297 BlackRock CDN US Equity Index Non-Taxable Fund US S&P 500 EMINI USD 1,130 1,416 Mar-13 80,543,873 80,197,534 80,031,279 (166,255) Total: BlackRock CDN US Equity Index Non-Taxable Fund 80,031,279 (166,255) BlackRock CDN US Equity Index Plus Non-Taxable Fund US S&P 500 EMINI USD 34 1,416 Mar-13 2,415,963 2,405,575 2,408,021 2,446 Total: BlackRock CDN US Equity Index Plus Non-Taxable Fund 2,408,021 2,446 BlackRock CDN US Equity Index Fund US S&P 500 EMINI USD 782 1,416 Mar-13 55,750,983 55,511,253 55,384,478 (126,775) Total: BlackRock CDN US Equity Index Fund 55,384,478 (126,775) BlackRock CDN US Alpha Tilts Non- Taxable Fund US S&P 500 EMINI USD 36 1,416 Mar-13 2,572,439 2,561,377 2,549,669 (11,708) Total: BlackRock CDN US Alpha Tilts Non-Taxable Fund 2,549,669 (11,708) BlackRock CDN Russell 3000 Index Non-Taxable Fund RUSSELL 2000 MINI INDEX USD Mar , , ,913 25,144 US S&P 500 EMINI USD 72 1,416 Mar-13 5,116,743 5,094,741 5,099,338 4,597 Total: BlackRock CDN Russell 3000 Index Non-Taxable Fund 6,027,251 29,

326 Notes to Financial Statements December 31, 2012 Currency No. of Contracts Current Price (CAD) Delivery Date Initial Contract Value Local Currency Initial Contract Value (CAD) Current Contract Market Value (CAD) Total Gain (Loss) on Open Contracts (CAD) BlackRock Active Canadian Equity Fund S&P/TSX 60 INDEX CAD Mar-13 18,625,224 18,625,224 18,865, ,216 Total: BlackRock Active Canadian Equity Fund 18,865, ,216 BlackRock Active Canadian Equity DC Fund S&P/TSX 60 INDEX CAD Mar-13 7,921,056 7,921,056 8,003,520 82,464 Total: BlackRock Active Canadian Equity DC Fund 8,003,520 82,464 BlackRock Active Canadian Equity Small Cap Fund S&P/TSX 60 INDEX CAD Mar-13 2,690,889 2,690,889 2,715,480 24,591 Total: BlackRock Active Canadian Equity Small Cap Fund 2,715,480 24,591 BlackRock Canada Alpha Advantage Fund S&P/TSX 60 INDEX CAD Mar-13 4,936,570 4,936,570 5,002,200 65,630 Total: BlackRock Canada Alpha Advantage Fund 5,002,200 65,630 BlackRock Canada CoreActive Universe Bond Fund Canada 10Y Bond CAD Mar , , ,840 (900) EURO-BUND EUR Mar , , ,430 3,257 Long Gilt Future GBP (4) 193 Mar-13 (472,459) (764,680) (770,023) (5,343) US 10YR Note USD (3) 132 Mar-13 (398,621) (396,906) (395,884) 1,022 Total: BlackRock Canada CoreActive Universe Bond Fund (130,637) (1,964) BlackRock Canada CorePlus Universe Bond Fund Canada 10Y Bond CAD Mar , , ,840 (900) EURO-BUND EUR Mar , , ,430 3,257 Long Gilt Future GBP (4) 193 Mar-13 (472,459) (764,680) (770,023) (5,343) US 10YR Note USD (3) 132 Mar-13 (398,621) (396,906) (395,884) 1,022 Total: BlackRock Canada CorePlus Universe Bond Fund (130,637) (1,964) BlackRock CDN MSCI EAFE Equity Index Fund Australia SPI 200 Futures AUD 17 4,771 Mar-13 1,948,688 2,014,427 2,027,542 13,115 Germany DJ EURO STOXX 50 EUR 281 3,420 Mar-13 7,384,301 9,693,601 9,609,258 (84,343) United Kingdom FTSE 100 GBP 57 9,461 Mar-13 3,358,070 5,435,073 5,392,774 (42,299) Nikkei 225 Index JPY Mar ,685,045 6,145,727 6,552, ,386 Total: BlackRock CDN MSCI EAFE Equity Index Fund 23,581, ,859 BlackRock CDN MSCI Emerging Markets Index Fund US EMINI MSCI EMERGING MKT USD 36 1,050 Mar-13 1,893,630 1,885,487 1,890,834 5,347 Total: BlackRock CDN MSCI Emerging Markets Index Fund 1,890,834 5,

327 Notes to Financial Statements December 31, 2012 Currency No. of Contracts Current Price (CAD) Delivery Date Initial Contract Value Local Currency Initial Contract Value (CAD) Current Contract Market Value (CAD) Total Gain (Loss) on Open Contracts (CAD) BlackRock CDN MSCI EAFE Index Plus Fund Australia SPI 200 Futures AUD 10 4,771 Mar-13 1,151,022 1,189,852 1,192,672 2,820 Germany DJ EURO STOXX 50 EUR 79 3,420 Mar-13 2,084,155 2,735,935 2,701,535 (34,400) United Kingdom FTSE 100 GBP 31 9,461 Mar-13 1,830,848 2,963,247 2,932,912 (30,335) Japan Topix Index JPY Mar ,714,776 1,631,937 1,784, ,757 US EMINI MSCI EAFE USD (9) 1,594 Mar-13 (724,465) (721,350) (717,128) 4,222 Total: BlackRock CDN MSCI EAFE Index Plus Fund 7,894,685 95,064 The schedule below is a summary of gain (loss) on open futures contracts held by the Funds as at December 31, 2011: Fund Contract Market Value (CAD) Total Gain (Loss) on Open Contracts (CAD) BlackRock Canadian Equity Index Fund 24,165, ,663 BlackRock Canadian Equity Ex-Trusts Index Fund 678,800 3,064 BlackRock CDN MSCI Canada IMI Index Fund 6,788,000 94,208 BlackRock CDN US Equity Index Non-Taxable Fund 99,497, ,204 BlackRock CDN US Equity Index Plus Non-Taxable Fund 3,316,593 (15,123) BlackRock CDN US Equity Index Fund 45,603, ,465 BlackRock CDN US Alpha Tilts Non-Taxable Fund 2,997,690 21,546 BlackRock CDN Russell 3000 Index Non-Taxable Fund 3,588,068 18,968 BlackRock Active Canadian Equity Fund 15,340, ,577 BlackRock Active Canadian Equity DC Fund 5,430, ,354 BlackRock Active Canadian Equity Small Cap Fund 1,086,080 25,004 BlackRock Canada Alpha Advantage Fund 1,493,360 33,844 BlackRock Canada CoreActive Universe Bond Fund 112,207 1,698 BlackRock CDN MSCI EAFE Equity Index Fund 17,092, ,528 BlackRock CDN MSCI Emerging Markets Index Fund 506,834 (2,871) BlackRock CDN MSCI EAFE Index Plus Fund 5,081,981 25, Forward currency contracts The table below is a summary of net unrealized gain (loss) on open forward currency contracts held by the Funds as at December 31, 2012: Contract Face Value Local Currency Counterparty Rating* Settlement Date Cost (CAD) Market Value (CAD) Net Unrealized Gain (Loss) (CAD) BlackRock CDN US Equity Index Hedged Non-Taxable Fund BUY 784,260,452 USD P-1 4-Jan ,064, ,919,008 2,854,214 Total Unrealized Gain 2,854,214 SELL (3,670,000) USD P-1 4-Jan-13 (3,654,246) (3,654,365) (119) SELL (20,283,000) USD P-1 5-Feb-13 (20,208,561) (20,209,401) (840) SELL (3,183,000) USD P-1 4-Jan-13 (3,163,752) (3,169,438) (5,686) SELL (777,407,452) USD P-1 4-Jan-13 (772,723,572) (774,095,206) (1,371,634) SELL (784,260,452) USD P-1 5-Feb-13 (778,570,642) (781,414,697) (2,844,055) Total Unrealized Loss (4,222,334) Total: BlackRock CDN US Equity Index Hedged Non-Taxable Fund (800,255,979) (801,624,099) (1,368,120) 327

328 Notes to Financial Statements December 31, 2012 Contract Face Value Local Currency Counterparty Rating* Settlement Date Cost (CAD) Market Value (CAD) Net Unrealized Gain (Loss) (CAD) BlackRock CDN US Alpha Tilts Hedged Non-Taxable Fund BUY 28,406,200 USD P-1 4-Jan-13 28,259,822 28,285,171 25,349 Total Unrealized Gain 25,349 SELL (139,000) USD P-1 4-Jan-13 (138,404) (138,408) (4) SELL (294,000.00) USD P-1 4-Jan-13 (292,222) (292,747) (525) SELL (28,406,200.00) USD P-1 5-Feb-13 (28,277,519) (28,303,125) (25,606) SELL (27,973,200.00) USD P-1 4-Jan-13 (27,825,193) (27,854,016) (28,823) Total Unrealized Loss (54,958) Total: BlackRock CDN US Alpha Tilts Hedged Non-Taxable Fund (28,273,516) (28,303,125) (29,609) BlackRock Canada CorePlus Long Bond Fund BUY 520,678,081 USD P-1 4-Jan ,996, ,459, ,075 BUY 1,070,037 USD P-1 4-Jan-13 1,063,617 1,065,478 1,861 Total Unrealized Gain 464,936 SELL (520,678,081) USD P-1 5-Feb-13 (518,228,291) (518,788,757) (560,466) SELL (521,748,118) USD P-1 4-Jan-13 (518,373,451) (519,525,142) (1,151,691) Total Unrealized Loss (1,712,157) Total: BlackRock Canada CorePlus Long Bond Fund (517,541,536) (518,788,757) (1,247,221) BlackRock Canada CorePlus Universe Bond Fund BUY 51,202,177 USD P-1 4-Jan-13 50,938,486 50,984,024 45,538 Total Unrealized Gain 45,538 SELL (103,156) USD P-1 4-Jan-13 (102,537) (102,716) (179) SELL (800,000) USD P-1 4-Jan-13 (796,008) (796,592) (584) SELL (51,202,177) USD P-1 5-Feb-13 (50,961,271) (51,016,386) (55,115) SELL (50,299,021) USD P-1 4-Jan-13 (49,973,687) (50,084,715) (111,028) Total Unrealized Loss (166,906) Total: BlackRock Canada CorePlus Universe Bond Fund (50,895,017) (51,016,385) (121,368) BlackRock CDN Global Market Selection Fund BUY 716,618,102 USD P-1 7-Jan ,963, ,607, ,832 Total Unrealized Gain 643,832 BUY 3,313,000 USD P-1 7-Feb-13 3,301,206 3,301,121 (85) SELL (8,618,417) USD P-1 7-Jan-13 (8,567,000) (8,582,207) (15,207) SELL (707,999,684) USD P-1 7-Jan-13 (704,417,206) (705,024,974) (607,768) SELL (716,618,102) USD P-1 7-Feb-13 (713,418,402) (714,048,490) (630,088) Total Unrealized Loss (1,253,148) Total: BlackRock CDN Global Market Selection Fund (710,138,053) (710,747,369) (609,316) BlackRock CDN MSCI EAFE Index Hedged Fund BUY 24,352,000 GBP** P-1 4-Jan-13 39,042,588 39,414, ,095 BUY 14,593,000 AUD** P-1 4-Jan-13 15,031,593 15,084,483 52,890 BUY 35,455,000 SEK** P-1 4-Jan-13 5,416,950 5,426,594 9,

329 Notes to Financial Statements December 31, 2012 Contract Face Value Local Currency Counterparty Rating* Settlement Date Cost (CAD) Market Value (CAD) Net Unrealized Gain (Loss) (CAD) BUY 9,101,000 NOK** P-1 4-Jan-13 1,619,294 1,628,269 8,975 BUY 3,798,000 SGD** P-2 4-Jan-13 3,089,475 3,095,979 6,504 BUY 42,573,000 HKD** P-1 4-Jan-13 5,465,785 5,469,205 3,420 BUY 262,000 NZD** P-1 4-Jan , ,220 2,249 BUY 414,000 EUR** P-2 5-Feb , , BUY 129,000 GBP** P-2 5-Feb , , BUY 52,000 ILS** P-1 4-Jan-13 13,543 13, BUY 85,000 CHF** P-2 5-Feb-13 92,401 92, BUY 3,900,000 ILS** P-1 4-Jan-13 1,040,666 1,040, BUY 64,000 USD P-1 4-Jan-13 63,670 63, BUY 189,000 SEK** P-2 5-Feb-13 28,877 28, BUY 82,000 NOK** P-2 5-Feb-13 14,638 14, BUY 32,000 DKK** P-2 5-Feb-13 5,628 5,637 9 BUY 1,000 NZD** P-2 4-Jan BUY 1,000 USD P-1 4-Jan SELL (2,264,804,000) JPY** P-1 4-Jan-13 (27,431,886) (26,080,672) 1,351,214 SELL (2,747,610,000) JPY** P-1 5-Feb-13 (31,954,527) (31,667,318) 287,209 SELL (458,743,000) JPY** P-1 4-Jan-13 (5,531,236) (5,282,720) 248,516 SELL (37,726,000) EUR** P-1 5-Feb-13 (49,675,069) (49,571,464) 103,605 SELL (12,812,000) AUD** P-2 4-Jan-13 (13,287,313) (13,243,500) 43,813 SELL (24,063,000) JPY** P-1 4-Jan-13 (290,374) (277,101) 13,273 SELL (14,001,000) CHF** P-2 5-Feb-13 (15,262,491) (15,250,235) 12,256 SELL (505,000) ILS** P-1 4-Jan-13 (142,777) (134,765) 8,012 SELL (11,394,000) DKK** P-1 5-Feb-13 (2,008,726) (2,007,054) 1,672 SELL (1,694,000) AUD** P-1 4-Jan-13 (1,752,353) (1,751,053) 1,300 SELL (553,846,000) JPY** P-1 5-Feb-13 (6,383,494) (6,383,300) 194 SELL (87,000) AUD** P-1 4-Jan-13 (89,971) (89,930) 41 SELL (2,000) NZD** P-2 5-Feb-13 (1,643) (1,641) 2 SELL (3,000) ILS** P-1 5-Feb-13 (800) (800) - Total Unrealized Gain 2,529,407 BUY 11,394,000 DKK** P-1 4-Jan-13 2,006,403 2,004,806 (1,597) BUY 14,001,000 CHF** P-2 4-Jan-13 15,243,232 15,230,017 (13,215) BUY 37,726,000 EUR** P-1 4-Jan-13 49,628,553 49,525,527 (103,026) BUY 2,747,610,000 JPY** P-1 4-Jan-13 31,926,605 31,640,494 (286,111) SELL (7,971) USD P-1 5-Feb-13 (7,971) (7,971) - SELL (30,000) NZD** P-1 5-Feb-13 (24,608) (24,609) (1) SELL (1,000) ILS** P-1 5-Feb-13 (265) (267) (2) SELL (1,000) USD P-2 5-Feb-13 (993) (996) (3) SELL (862,000) NOK** P-1 5-Feb-13 (154,133) (154,143) (10) SELL (44,000) HKD** P-1 5-Feb-13 (5,643) (5,657) (14) SELL (1,207,000) DKK** P-1 5-Feb-13 (212,593) (212,613) (20) SELL (505,000) SGD** P-1 5-Feb-13 (411,882) (411,902) (20) SELL (4,227,000) HKD** P-1 5-Feb-13 (543,437) (543,458) (21) SELL (43,000) SGD** P-2 4-Jan-13 (35,023) (35,052) (29) SELL (4,187,000) SEK** P-1 5-Feb-13 (640,753) (640,783) (30) SELL (13,000) SGD** P-2 5-Feb-13 (10,572) (10,603) (31) SELL (279,000) HKD** P-1 4-Jan-13 (35,809) (35,842) (33) SELL (64,000) USD P-1 5-Feb-13 (63,710) (63,768) (58) SELL (86,000) AUD** P-2 5-Feb-13 (88,677) (88,743) (66) SELL (1,969,000) AUD** P-1 5-Feb-13 (2,031,733) (2,031,801) (68) 329

330 Notes to Financial Statements December 31, 2012 Contract Face Value Local Currency Counterparty Rating* Settlement Date Cost (CAD) Market Value (CAD) Net Unrealized Gain (Loss) (CAD) SELL (1,379,000) CHF** P-1 5-Feb-13 (1,501,933) (1,502,041) (108) SELL (65,000) USD P-1 4-Jan-13 (64,607) (64,723) (116) SELL (2,622,000) GBP** P-1 5-Feb-13 (4,246,014) (4,246,217) (203) SELL (77,000) DKK** P-1 4-Jan-13 (13,341) (13,548) (207) SELL (35,000) NZD** P-1 4-Jan-13 (28,491) (28,751) (260) SELL (401,000) SGD** P-1 4-Jan-13 (326,578) (326,880) (302) SELL (3,900,000) ILS** P-1 5-Feb-13 (1,039,834) (1,040,270) (436) SELL (4,669,000) EUR** P-1 5-Feb-13 (6,134,552) (6,135,004) (452) SELL (146,000) NOK** P-1 4-Jan-13 (25,565) (26,121) (556) SELL (228,000) NZD** P-1 4-Jan-13 (185,939) (187,292) (1,353) SELL (6,574,000) HKD** P-1 4-Jan-13 (843,158) (844,539) (1,381) SELL (25,191,000) JPY** P-2 5-Feb-13 (288,620) (290,336) (1,716) SELL (456,000) SEK** P-1 4-Jan-13 (68,021) (69,794) (1,773) SELL (120,000) CHF** P-1 4-Jan-13 (128,638) (130,534) (1,896) SELL (262,000) NZD** P-1 5-Feb-13 (212,671) (214,919) (2,248) SELL (3,354,000) SGD** P-2 4-Jan-13 (2,731,497) (2,734,048) (2,551) SELL (844,000) NOK** P-1 4-Jan-13 (147,958) (151,001) (3,043) SELL (1,341,000) DKK** P-1 4-Jan-13 (232,552) (235,952) (3,400) SELL (42,573,000) HKD** P-1 5-Feb-13 (5,469,999) (5,473,533) (3,534) SELL (35,720,000) HKD** P-1 4-Jan-13 (4,584,831) (4,588,823) (3,992) SELL (256,000) GBP** P-2 4-Jan-13 (407,588) (414,347) (6,759) SELL (3,798,000) SGD** P-2 5-Feb-13 (3,090,956) (3,097,831) (6,875) SELL (9,101,000) NOK** P-1 5-Feb-13 (1,618,448) (1,627,445) (8,997) SELL (437,000) EUR** P-1 4-Jan-13 (564,538) (573,680) (9,142) SELL (35,455,000) SEK** P-1 5-Feb-13 (5,416,273) (5,426,072) (9,799) SELL (4,259,000) SEK** P-1 4-Jan-13 (635,179) (651,865) (16,686) SELL (8,111,000) NOK** P-1 4-Jan-13 (1,425,460) (1,451,147) (25,687) SELL (1,831,000) CHF** P-1 4-Jan-13 (1,965,444) (1,991,726) (26,282) SELL (9,976,000) DKK** P-1 4-Jan-13 (1,725,414) (1,755,305) (29,891) SELL (3,447,000) ILS** P-1 4-Jan-13 (888,660) (919,870) (31,210) SELL (14,593,000) AUD** P-1 5-Feb-13 (15,005,252) (15,058,439) (53,187) SELL (2,738,000) GBP** P-1 4-Jan-13 (4,361,415) (4,431,562) (70,147) SELL (30,740,000) SEK** P-1 4-Jan-13 (4,619,953) (4,704,936) (84,983) SELL (4,985,000) EUR** P-1 4-Jan-13 (6,446,730) (6,544,154) (97,424) SELL (12,050,000) CHF** P-2 4-Jan-13 (12,920,811) (13,107,757) (186,946) SELL (24,352,000) GBP** P-1 5-Feb-13 (39,064,139) (39,437,027) (372,888) SELL (21,358,000) GBP** P-1 4-Jan-13 (34,032,969) (34,568,774) (535,805) SELL (32,304,000) EUR** P-2 4-Jan-13 (41,669,802) (42,407,693) (737,891) Total Unrealized Loss (2,744,481) Total: BlackRock CDN MSCI EAFE Index Hedged Fund (191,518,477) (191,733,551) (215,074) * Source: Moody s Investors Service, Inc. ** Forward currency contracts against USD 330

331 Notes to Financial Statements December 31, 2012 The table below is a summary of gain (loss) on forward currency contracts held by the Funds as at December 31, 2011: Fund Cost (CAD) Market Value (CAD) Net Unrealized Gain (Loss) (CAD) BlackRock CDN US Equity Index Hedged Non-Taxable Fund Total Unrealized Gain (1,472,923,368) (1,456,061,231) 16,862,137 Total Unrealized Loss 710,091, ,089,582 (4,001,678) Total: BlackRock CDN US Equity Index Hedged Non-Taxable Fund (762,832,108) (749,971,649) 12,860,459 BlackRock CDN US Alpha Tilts Hedged Non-Taxable Fund Total Unrealized Gain (63,519,123) (62,449,139) 1,069,984 Total Unrealized Loss 38,996,545 38,854,279 (142,266) Total: BlackRock CDN US Alpha Tilts Hedged Non-Taxable Fund (24,522,578) (23,594,860) 927,718 BlackRock Canada CorePlus Long Bond Fund Total Unrealized Gain (732,430,381) (721,922,495) 10,507,886 Total Unrealized Loss 361,557, ,419,997 (4,137,922) Total: BlackRock Canada CorePlus Long Bond Fund (370,872,462) (364,502,498) 6,369,964 BlackRock Canada CorePlus Universe Bond Fund Total Unrealized Gain (20,736,610) (20,438,702) 297,908 Total Unrealized Loss 10,299,293 10,182,945 (116,348) Total: BlackRock Canada CorePlus Universe Bond Fund (10,437,317) (10,255,757) 181,560 BlackRock CDN Global Market Selection Fund Total Unrealized Gain (1,734,392,915) (1,704,186,633) 30,206,282 Total Unrealized Loss 839,557, ,335,795 (3,222,149) Total: BlackRock CDN Global Market Selection Fund (894,834,971) (867,850,838) 26,984,133 BlackRock CDN MSCI EAFE Index Hedged Fund Total Unrealized Gain (1,557,578,960) (1,528,720,309) 28,858,651 Total Unrealized Loss 1,153,210,249 1,135,740,658 (17,469,591) Total: BlackRock CDN MSCI EAFE Index Hedged Fund (404,368,711) (392,979,651) 11,389,060 BlackRock CDN Global Equity Focus Fund Total Unrealized Gain (1,236,129) (1,140,786) 95,343 Total Unrealized Loss 1,236,129 1,161,856 (74,273) Total: BlackRock CDN Global Equity Focus Fund - 21,070 21, Swap agreements The table below is a summary of the swap contracts held by the Funds as at December 31, 2012: Notional Amount (CAD) Currency Expiration Date Counterparty Index Level/Variable Rate Unrealized Gain/(Loss) (CAD) BlackRock Canada Levered Long Bond Index Fund 67,657,196 CAD 12/17/2013 Canadian Bank BlackRock Canada Levered Real Return Bond Index Fund 49,274,024 CAD 12/17/2013 Canadian Bank BlackRock Canada Long Bond Index Fund/CDOR % 553,246 BlackRock Canada Real Return Bond Index Fund/CDOR % 231,

332 Notes to Financial Statements December 31, 2012 The table below is a summary of the swap contracts held by the Funds as at December 31, 2011: Notional Amount (CAD) Currency Expiration Date Counterparty Index Level/Variable Rate Unrealized Gain/(Loss) (CAD) BlackRock Canada Levered Long Bond Index Fund 46,219,651 CAD 12/20/2012 Canadian Bank BlackRock Canada Levered Real Return Bond Index Fund 46,216,764 CAD 12/20/2012 Canadian Bank The swap agreements are subject to termination if the leverage ratio exceeds a certain limit. 7. Repurchase agreements The table below is a summary of the repurchase agreements held by the Funds as at December 31, 2012: BlackRock Canada CorePlus Long Bond Fund BlackRock Canada Long Bond Index Fund/CDOR % 2,257,978 BlackRock Canada Real Return Bond Index Fund/CDOR % 3,517,931 Sold Trade Date Currency Expiration Date Counterparty Amount of Cash Received (CAD) Repurchase Price (CAD) Value of Securities Sold At December 31, 2012 (CAD) Province of British Columbia 6.35%, June Nov-12 CAD Open SCC 5,441, ,358,277 Province of British Columbia 4.3%, June Nov-12 CAD Open SCC 12,234, ,095,159 Province of Quebec 5.35%, June Nov-12 CAD Open SCC 2,471, ,432,491 Province of Quebec 5.75%, December Nov-12 CAD Open SCC 14,332, ,137,147 Province of Ontario 4.65%, June Nov-12 CAD Open SCC 35,239, ,736,890 Province of Ontario 6.5%, March Nov-12 CAD Open CWM 20,590, ,440,562 Province of Ontario 6.2%, June Nov-12 CAD 11-Jan-13 CWM 9,252, ,037,352 Government of Canada 8%, June Nov-12 CAD Open TD 16,507, ,962,676 Province of Ontario 8.1%, September Nov-12 CAD Open TD 9,876, ,722,267 Province of Quebec 6.25%, June Nov-12 CAD Open TD 15,847, ,467,156 Province of Quebec 5%, December Nov-12 CAD Open TD 16,617, ,274,808 Hydro Quebec 5%, February Dec-12 CAD Open SCC 9,683, ,589,880 Province of Ontario 8.5%, December Dec-12 CAD Open CWM 6,300, ,289,536 Province of Ontario 2.85%, June Dec-12 CAD 11-Jan-13 CWM 7,017, ,992,300 Government of Canada 3.5%, December Dec-12 CAD Open RBC 24,048, ,700,459 Province of Quebec 6%, October Dec-12 CAD Open TD 2,685, ,667,727 Government of Canada 8%, June Dec-12 CAD Open TD 12,216, ,213,111 Government of Canada 9%, June Dec-12 CAD Open RBC 11,187, ,190,985 Government of Canada 5.75%, June Dec-12 CAD Open RBC 44,061, ,189,251 Government of Canada 5.75%, June Dec-12 CAD Open RBC 49,457, ,648,349 Government of Canada 5%, June Dec-12 CAD Open RBC 52,480, ,789,130 Government of Canada 4%, June Dec-12 CAD Open SCC 56,963, ,338,316 Hydro Quebec 6.5%, February Dec-12 CAD Open SCC 9,866, ,809,813 Province of Ontario 5.85%, March Dec-12 CAD Open RBC 17,576, ,480,665 Province of Ontario 3.5%, June Dec-12 CAD 11-Jan-13 CWM 24,969, ,164,136 Province of Quebec 4.25%, December Dec-12 CAD 11-Jan-13 SCC 18,370, ,548,362 Government of Canada 1.5%, June Dec-12 CAD 11-Jan-13 SCC 11,359, ,834,059 Total: BlackRock Canada CorePlus Long Bond Fund 516,652, ,110,864 BlackRock Canada CorePlus Universe Bond Fund Province of Ontario 4.3%, March Jun-12 CAD Open RBC 512, ,897 Province of Quebec 5%, December Jun-12 CAD Open RBC 745, ,781 Hydro Quebec 9.625%, July Jun-12 CAD Open RBC 123, ,

333 Notes to Financial Statements December 31, 2012 Sold Trade Date Currency Expiration Date Counterparty Amount of Cash Received (CAD) Repurchase Price (CAD) Value of Securities Sold At December 31, 2012 (CAD) Canada Housing Trust 2.2%, March Jun-12 CAD Open RBC 598, ,201 Canada Housing Trust No %, June Jun-12 CAD Open RBC 690, ,196 Government of Canada 2%, December Jun-12 CAD Open RBC 1,244, ,234,498 Government of Canada 3%, December Jun-12 CAD 16-Jan-13 RBC 974, ,804 Government of Canada 2%, June Jun-12 CAD Open RBC 808, ,312 Government of Canada 2.75%, September Jun-12 CAD Open RBC 812, ,369 Government of Canada 1.5%, March Jun-12 CAD Open RBC 727, ,061 Canada Housing Trust 2.75%, December Jul-12 CAD Open RBC 565, ,949 Canada Housing Trust 2.95%, March Jul-12 CAD Open RBC 536, ,520 Government of Canada 2.25%, August Jul-12 CAD Open RBC 1,120, ,100,856 Canada Housing Trust No %, June Aug-12 CAD Open RBC 915, ,961 Government of Canada 1%, February Aug-12 CAD Open RBC 806, ,073 Government of Canada 0.75%, May Aug-12 CAD Open RBC 796, ,109 Government of Canada 2.5%, June Aug-12 CAD Open RBC 917, ,932 Province of Ontario 4.65%, June Aug-12 CAD Open RBC 943, ,570 Canada Housing Trust 2.75%, December Sep-12 CAD Open RBC 528, ,735 Canada Housing Trust No %, March Sep-12 CAD Open RBC 574, ,446 Government of Canada 3.5%, June Sep-12 CAD Open RBC 1,187, ,171,883 Government of Canada 5.75%, June Sep-12 CAD Open RBC 1,472, ,451,933 Canada Housing Trust No %, March Sep-12 CAD Open RBC 484, ,205 Province of Ontario 5.85%, March Oct-12 CAD Open RBC 452, ,506 Government of Canada 2.75%, June Oct-12 CAD Open RBC 878, ,580 Government of Canada 1%, November Oct-12 CAD Open RBC 600, ,505 Government of Canada 1.5%, August Oct-12 CAD Open RBC 495, ,522 Canada Housing Trust No %, December Oct-12 CAD Open RBC 499, ,023 Canada Housing Trust No %, June Oct-12 CAD Open RBC 563, ,741 Canada Housing Trust No %, December Oct-12 CAD Open RBC 553, ,198 Canada Housing Trust No %, June Oct-12 CAD Open RBC 1,201, ,187,129 Canada Housing Trust No %, December Oct-12 CAD Open RBC 696, ,295 Government of Canada 2%, March Oct-12 CAD Open RBC 694, ,969 Government of Canada 3%, June Oct-12 CAD Open RBC 1,107, ,090,770 Government of Canada 5%, June Oct-12 CAD Open RBC 657, ,837 Government of Canada 4.5%, June Oct-12 CAD Open RBC 755, ,140 Government of Canada 4%, June Oct-12 CAD Open RBC 761, ,506 Government of Canada 9.75%, June Oct-12 CAD Open RBC 127, ,006 Government of Canada 8%, June Oct-12 CAD Open RBC 368, ,906 Government of Canada 9%, June Oct-12 CAD Open RBC 275, ,725 Government of Canada 8%, June Oct-12 CAD Open RBC 534, ,463 Province of Ontario 4.2%, June Oct-12 CAD Open RBC 605, ,287 Province of Ontario 4%, June Oct-12 CAD Open RBC 909, ,333 Province of Ontario 6.5%, March Oct-12 CAD Open RBC 537, ,684 Province of Quebec 4.5%, December Oct-12 CAD Open RBC 527, ,957 Province of Quebec 5%, December Oct-12 CAD Open RBC 474, ,299 Canada Housing Trust No %, December Oct-12 CAD Open RBC 905, ,511 Province of Ontario 5%, March Oct-12 CAD Open RBC 431, ,898 Province of Ontario 3.15%, June Oct-12 CAD Open RBC 942, ,327 Province of Ontario 7.6%, June Oct-12 CAD Open RBC 391, ,561 Province of Ontario 4.6%, June Oct-12 CAD Open RBC 641, ,133 Canada Housing Trust 3.15%, June Nov-12 CAD Open SCC 680, ,388 Canada Housing Trust No %, September Nov-12 CAD Open SCC 598, ,

334 Notes to Financial Statements December 31, 2012 Sold Trade Date Currency Expiration Date Counterparty Amount of Cash Received (CAD) Repurchase Price (CAD) Value of Securities Sold At December 31, 2012 (CAD) Government of Canada 4%, June Nov-12 CAD Open SCC 894, ,478 Government of Canada 5.75%, June Nov-12 CAD Open SCC 1,147, ,129,210 Government of Canada 5%, June Nov-12 CAD Open SCC 1,480, ,460,528 Hydro Quebec 11%, August Nov-12 CAD Open RBC 248, ,123 Hydro Quebec 6.5%, February Nov-12 CAD Open RBC 222, ,278 Hydro Quebec 5%, February Nov-12 CAD Open RBC 197, ,270 Government of Canada 4%, June Nov-12 CAD Open RBC 1,592, ,568,001 Province of Ontario 6.2%, Juen Nov-12 CAD Open CWM 356, ,371 Government of Canada 3.25%, June Nov-12 CAD Open CWM 1,019, ,514 Province of Ontario 2.85%, June Nov-12 CAD 11-Jan-13 CWM 152, ,835 Canada Housing Trust No %, December Dec-12 CAD Open CWM 381, ,984 Province of Ontario 3.5%, June Dec-12 CAD Open RBC 664, ,906 Government of Canada 1.5%, June Dec-12 CAD Open SCC 353, ,331 Government of Canada 3.5%, December Dec-12 CAD Open RBC 675, ,016 Hydro Quebec 5%, February Dec-12 CAD Open RBC 268, ,364 Canada Housing Trust No %, December Dec-12 CAD Open RBC 411, ,306 Government of Canada 1%, February Dec-12 CAD Open RBC 830, ,567 Government of Canada 1.5%, September Dec-12 CAD Open RBC 689, ,618 Government of Canada 4.25%, June Dec-12 CAD Open CWM 889, ,395 Government of Canada 3.75%, June Dec-12 CAD Open RBC 1,566, ,565,607 Province of Ontario 4.4%, June Dec-12 CAD Open RBC 740, ,265 Government of Canada 1.25%, February Dec-12 CAD Open RBC 350, ,723 Government of Canada 1.25%, March Dec-12 CAD 15-Jan-13 RBC 223, ,013 Total: BlackRock Canada CorePlus Universe Bond Fund 52,317,081 51,732, Unitholders equity The authorized capital of the Funds consists of an unlimited number of units without nominal or par. Unitholders have the right, under the Funds master declaration of trust, to request the redemption of their units at the current net asset per unit. For certain funds the authorized capital consists of multiple classes of units. Unitholders in Class D units are primarily defined contribution pension plans and unitholders in Class A are primarily defined benefit pension plans. In accordance with the Funds master declaration of trust, the number of units issued as a result of distributions will be consolidated so that the number of units then outstanding will be equal to the number of units outstanding immediately prior to the issuance of such additional units, except for the BlackRock CDN Emerging Markets Fundamental Index Fund, for which the number of units outstanding includes units issued as a result of income distributions, in accordance with its declaration of trust. Changes in issued units, for the periods ended December 31, 2012 and December 31, 2011 respectively, are summarized below: Fund/Class Units Issued Units Redeemed Units Issued Units Redeemed BlackRock Canadian Equity Index Class A 13,876,600 (8,213,948) 10,751,778 (5,254,340) BlackRock Canadian Equity Index Class D 26,863,374 (10,889,053) 26,298,400 (11,664,778) BlackRock Canadian Equity Ex-Trusts Index Fund 96,504 (1,704,898) 160,947 (1,067,320) BlackRock CDN MSCI Canada IMI Index Fund 18,896,194 (8,863,374) 16,132,696 (38,691,473) BlackRock CDN US Equity Index Non-Taxable Class A 20,046,343 (31,275,409) 79,953,758 (105,240,588) BlackRock CDN US Equity Index Non-Taxable Class D 17,889,861 (3,791,347) 11,684,242 (5,477,855) BlackRock CDN US Equity Index Plus Non-Taxable Fund 4,193,593-1,415,384 (11,182,164) BlackRock CDN US Equity Index Hedged Non-Taxable Fund 2,716,679 (9,090,109) 4,572,733 (16,321,878) BlackRock CDN US Equity Index Class A 1,051,703 (40,907) 21,341 (81,998) BlackRock CDN US Equity Index Class D 95,849,101 (11,816,533) 32,488,487 (9,699,383) BlackRock CDN US Alpha Tilts Non-Taxable Fund 1,795,304 (11,321,241) 1,473,790 (31,593,616) 334

335 Notes to Financial Statements December 31, Fund/Class Units Issued Units Redeemed Units Issued Units Redeemed BlackRock CDN US Alpha Tilts Hedged Non-Taxable Fund - (9,786) 102,950 (1,495,799) BlackRock CDN Russell 3000 Index Non-Taxable Fund 38,991,555 (41,500,187) 17,834,669 (41,256,712) BlackRock Active Canadian Equity Fund 15,954,667 (6,126,760) 4,515,073 (9,301,491) BlackRock Active Canadian Equity Ex-Income Trusts Fund 303,979 (23,813,339) 7,284,753 (20,056,462) BlackRock Active Canadian Equity DC Fund 6,796,041 (2,133,779) 2,579,872 (2,661,662) BlackRock Active Canadian Equity Small Cap Fund - (1,351,327) - (700,513) BlackRock Canada Alpha Advantage Fund 22,199,198-9,999,962 - BlackRock Canada Universe Bond Index Class A 8,546,115 (62,646,845) 32,137,783 (67,604,792) BlackRock Canada Universe Bond Index Class D 44,766,854 (18,004,164) 33,009,520 (23,906,275) BlackRock Canada ex-bbb Universe Bond Index Fund 3,218 (19,128,454) 438,036 (4,576,455) BlackRock Canada Real Return Bond Index Class A 153,581 (1,554,438) 4,060,932 (3,055,209) BlackRock Canada Real Return Bond Index Class D 10,666,291 (1,388,351) 5,352,303 (2,289,068) BlackRock Canada Long Bond Index Class A 65,258,255 (22,187,158) 68,362,973 (88,373,654) BlackRock Canada Long Bond Index Class D 28,151,215 (3,202,417) 14,972,710 (5,914,269) BlackRock Canada Long Government Bond Index Fund - (17,104,175) 57,908,766 - BlackRock Canada All Government Bond Index Fund 1,306,978 (2,227,084) 556,167 (1,448,245) BlackRock Canada Credit -Screened Bond Index Fund 18,329,414 (8,742,829) 266,482 (1,248,427) BlackRock Canada CoreActive Universe Bond Class A 197,867 (149,247) 327,916 (840,539) BlackRock Canada CorePlus Long Bond Fund 14,772,110-3,317,192 - BlackRock Canada CorePlus Universe Bond Fund 200,748 (36,394) 9,127,817 - BlackRock Canada Levered Long Bond Index Fund 1,230,913 (241,308) 3,848,139 - BlackRock Canada Levered Real Return Bond Index Fund - (395,444) 3,847,558 - BlackRock Balanced Moderate Index DC Fund 10,156,759 (5,702,060) 8,985,386 (5,448,846) BlackRock Balanced Conservative Index DC Fund 7,009,673 (3,313,390) 5,828,503 (2,000,577) BlackRock Balanced Aggressive Index DC Fund 2,200,801 (1,148,145) 2,134,677 (947,849) BlackRock CDN LifePath Retirement Index Fund I 6,680,993 (1,533,967) 6,982,639 (1,274,542) BlackRock CDN LifePath Index 2010 Retirement Fund 1,418,620 (2,027,019) 1,598,389 (2,855,945) BlackRock CDN LifePath 2015 Index Fund 13,375,612 (2,626,295) 15,129,050 (1,789,909) BlackRock CDN LifePath 2020 Index Fund 26,400,915 (3,626,945) 23,060,218 (3,229,372) BlackRock CDN LifePath 2025 Index Fund 29,106,542 (3,320,193) 21,373,991 (912,412) BlackRock CDN LifePath 2030 Index Fund 26,334,854 (3,893,698) 19,963,058 (1,721,164) BlackRock CDN LifePath 2035 Index Fund 19,390,386 (1,811,748) 14,653,598 (568,923) BlackRock CDN LifePath 2040 Index Fund 14,808,185 (1,762,624) 11,815,809 (1,258,640) BlackRock CDN LifePath 2045 Index Fund 12,802,088 (833,865) 7,408,419 (403,495) BlackRock CDN LifePath 2050 Index Fund 650,003 (3,012) - - BlackRock Balanced Active Fund (494,287) BlackRock CDN Global Market Selection Class A 240,333 (3,874,606) 1,493,754 (47,385) BlackRock CDN Short Term Index Class A 12,314,491 (4,185,297) 1,154,945 (394,567) BlackRock CDN Short Term Index Class D 1,034,236 (1,214,113) 1,581,042 (1,577,172) BlackRock CDN MSCI EAFE Equity Index Class A 51,047,149 (47,791,370) 53,145,277 (40,157,789) BlackRock CDN MSCI EAFE Equity Index Class D 56,050,754 (15,645,648) 46,527,828 (23,314,662) BlackRock CDN MSCI EAFE Index Hedged Fund 5,150,200 (30,076,164) 15,666,976 (9,549,706) BlackRock CDN MSCI ACWI ex-canada Index Fund 26,960,524 (3,207,716) 6,246,815 (3,765,950) BlackRock CDN MSCI Emerging Markets Index Class A 6,348,750 (36,613) 6,351,972 (274,359) BlackRock CDN MSCI EAFE Index Plus Fund 1,931,784 (2,148,279) 10,943,537 - BlackRock CDN Global Equity Focus Fund 1,552,996 (60,581) 4,363,908 - BlackRock CDN Global Developed Real Estate Index Class D 36,195,127 (1,646,446) - - BlackRock CDN Global Infrastructure Equity Index Class D 21,788,668 (1,759,714) - - BlackRock CDN Emerging Markets Fundamental Index Fund 3,555,621* (41,749) 760 (36) * BlackRock CDN Emerging Markets Fundamental Index Fund includes units reinvested. 335

336 Notes to Financial Statements December 31, Redemptions In determining the amount of distributions payable to unitholders at the end of the year, net realized capital gains may be allocated to redeeming unitholders. Any such redeeming unitholders will receive a T3 supplementary slip for the allocated gain. Any net capital gains that remain after allocations to redeeming unitholders will be distributed to remaining unitholders. 10. Related parties BlackRock Canada has appointed 1) BlackRock Institutional Trust Company, N.A. ( BTC ), a national banking association organized under the laws of the United States of America that operates as a limited purpose trust company as the sub-adviser of the Funds, except for the BlackRock CDN Global Equity Focus Fund, and 2) BlackRock Investment Management (UK) Limited, ( BIM UK ), a corporation incorporated under the laws of England and Wales that is authorized and regulated by the Financial Services Authority of the United Kingdom ( FSA ), as sub-adviser of the BlackRock CDN Global Equity Focus Fund. As subadvisers, BTC and BIM UK are responsible for the investment management activities of the Funds, subject to the policies, control and supervision of BlackRock Canada. BTC and BIM UK, each, an affiliate of BlackRock Canada, are wholly-owned, indirect subsidiaries of BlackRock, Inc., an asset management company. BlackRock Canada remains responsible for the management of the Funds, including the management of investment portfolios and the investment advice provided by BTC and BIM UK. The Funds are responsible for all operating expenses incurred by or on behalf of the Funds. If BlackRock Canada provides any of these services, it will be entitled to fees for such services. The Funds are responsible for all commissions payable to brokers or dealers on behalf of the Funds. a. Investments in other funds The Funds may invest in other investment funds managed by BlackRock Canada or its affiliates, in accordance with their respective investment objectives. Disclosure of such investments held as at December 31, 2012 is provided in the Statements of Investment Portfolio in the financial statements. b. Securities lending The Funds may lend securities, either directly, or through an agent, to brokers, dealers and other financial institutions. Securities lending enables the Funds to earn additional income. By using such income to offset the Funds expenses, the Funds will be able to reduce the effect such expenses have on the Funds ability to provide investment results that more closely correspond to the investment objectives of the Funds. The Funds have entered into a securities lending authorization agreement with each of BTC and BlackRock Advisors (UK) Limited ( BRAL ), as lending agents, subject to the overriding authority of BlackRock Canada. BRAL is a corporation incorporated under the laws of England and Wales and is authorized and regulated by the FSA. BRAL is also an affiliate of BlackRock Canada and a wholly-owned, indirect subsidiary of BlackRock, Inc. Both BTC and BRAL have considerable experience and expertise in securities lending. The net income earned in connection with securities lending is allocated 50% to the applicable lending agent and 50% to the relevant Fund. The lending agents bear all operational s with respect to the lending of securities. The Funds require collateral in the form of cash or obligations of, or guaranteed by, the Government of Canada or a province thereof or of the United States Government or its agencies or instrumentalities or other acceptable collateral that has an aggregate of not less than 102% of the fair of the loaned securities. BlackRock Canada assesses the credit-worthiness of each borrower, and acts promptly to demand payment from any borrower in realizing any collateral. During the period, the Funds received sovereign, Canadian agencies and US Government-backed instruments bonds as collateral which is held by the lending agent on behalf of the Funds. The market of securities on loan and the market of the associated collateral as at December 31, 2012 are provided below: Fund Market Value of Securities on Loan as at December 31, 2012* Market Value of Collateral as at December 31, 2012* % BlackRock Canadian Equity Index Fund $294,005,405 $312,049, BlackRock Canadian Equity Ex-Trusts Index Fund 51,676 54, BlackRock CDN MSCI Canada IMI Index Fund 77,193,846 81,915, BlackRock CDN US Equity Index Non-Taxable Fund 4,131,181 4,540, BlackRock CDN Russell 3000 Index Non-Taxable Fund 117, , BlackRock Active Canadian Equity Fund 92,073,974 97,472, BlackRock Active Canadian Equity Ex-Income Trusts Fund 19,482,992 20,811, BlackRock Active Canadian Equity DC Fund 27,302,960 29,167, BlackRock Active Canadian Equity Small Cap Fund 5,009,110 5,293,

337 Notes to Financial Statements December 31, 2012 Fund Market Value of Securities on Loan as at December 31, 2012* Market Value of Collateral as at December 31, 2012* % BlackRock Canada Universe Bond Index Fund $826,247,459 $861,412, BlackRock Canada ex-bbb Universe Bond Index Fund 34,173,987 35,625, BlackRock Canada Long Bond Index Fund 85,943,880 89,385, BlackRock Canada All Government Bond Index Fund 26,604,750 27,733, BlackRock Canada Credit-Screened Bond Index Fund 4,032,129 4,194, BlackRock Canada CoreActive Universe Bond Fund 10,471,798 10,921, BlackRock Balanced Moderate Index DC Fund 102, , BlackRock Balanced Conservative Index DC Fund 341, , BlackRock Balanced Aggressive Index DC Fund 170, , BlackRock CDN MSCI EAFE Equity Index Fund 49,625,811 53,098, BlackRock CDN MSCI EAFE Index Plus Fund 4,288,378 4,708, * at market close prices c. Inter-fund trading Certain funds executed inter-fund trades for the periods ended December 31, 2012 and December 31, 2011, respectively. Interfund trading is the buying and selling of portfolio securities between funds to which BlackRock Canada serves as trustee and manager, or between funds to which BlackRock Canada serves as manager and trustee and managed accounts to which BlackRock Canada serves as manager. At certain regularly scheduled meetings, the IRC (as defined hereinafter) reviews such transactions for compliance with certain requirements and restrictions, including the price at which the inter-fund trades are executed. d. Indirect expenses Funds investing in exchange traded funds may incur indirect expenses for investment management fees. The indirect expenses based on the average holdings of exchange traded funds for the year ended December 31, 2012 and December 31, 2011 are summarized below: Indirect Expenses as a Percentage of Net Assets Fund December 31, 2012 December 31, 2011 BlackRock Balanced Moderate Index DC Fund 0.07% 0.06% BlackRock Balanced Conservative Index DC Fund 0.06% 0.05% BlackRock Balanced Aggressive Index DC Fund 0.08% 0.07% BlackRock CDN LifePath Retirement Index Fund I 0.11% 0.13% BlackRock CDN LifePath Index 2010 Retirement Fund 0.11% 0.13% BlackRock CDN LifePath 2015 Index Fund 0.12% 0.15% BlackRock CDN LifePath 2020 Index Fund 0.13% 0.16% BlackRock CDN LifePath 2025 Index Fund 0.14% 0.17% BlackRock CDN LifePath 2030 Index Fund 0.13% 0.17% BlackRock CDN LifePath 2035 Index Fund 0.13% 0.17% BlackRock CDN LifePath 2040 Index Fund 0.12% 0.16% BlackRock CDN LifePath 2045 Index Fund 0.11% 0.13% BlackRock CDN LifePath 2050 Index Fund 0.03% - BlackRock Balanced Active Fund 0.09% 0.06% BlackRock CDN MSCI ACWI ex-canada Index Fund 0.11% 0.09% 11. Comparison of Net Asset Value per Unit and Net Assets per Unit The primary reason for the difference between the Net Asset Value per Unit and Net Assets per Unit is described in Note 2. As at December 31, 2012 As at December 31, 2011 Fund/Class Net Asset Value Per Unit Net Assets Per Unit Net Asset Value Per Unit Net Assets Per Unit BlackRock Canadian Equity Index Class A $57.13 $57.03 $53.29 $53.19 BlackRock Canadian Equity Index Class D

338 Notes to Financial Statements December 31, 2012 Fund/Class As at December 31, 2012 As at December 31, 2011 Net Asset Value Per Unit Net Assets Per Unit Net Asset Value Per Unit Net Assets Per Unit BlackRock Canadian Equity Ex-Trusts Index Fund $56.68 $-* $53.03 $52.94 BlackRock CDN MSCI Canada IMI Index Fund BlackRock CDN US Equity Index Non-Taxable Class A BlackRock CDN US Equity Index Non-Taxable Class D BlackRock CDN US Equity Index Plus Non-Taxable Fund BlackRock CDN US Equity Index Hedged Non-Taxable Fund BlackRock CDN US Equity Index Class A BlackRock CDN US Equity Index Class D BlackRock CDN US Alpha Tilts Non-Taxable Fund BlackRock CDN US Alpha Tilts Hedged Non-Taxable Fund BlackRock CDN Russell 3000 Index Non-Taxable Fund BlackRock Active Canadian Equity Fund BlackRock Active Canadian Equity Ex-Income Trusts Fund BlackRock Active Canadian Equity DC Fund BlackRock Active Canadian Equity Small Cap Fund BlackRock Canada Alpha Advantage Fund BlackRock Canada Universe Bond Index Class A BlackRock Canada Universe Bond Index Class D BlackRock Canada ex-bbb Universe Bond Index Fund BlackRock Canada Real Return Bond Index Class A BlackRock Canada Real Return Bond Index Class D BlackRock Canada Long Bond Index Class A BlackRock Canada Long Bond Index Class D BlackRock Canada Long Government Bond Index Fund BlackRock Canada All Government Bond Index Fund BlackRock Canada Credit-Screened Bond Index Fund BlackRock Canada CoreActive Universe Bond Class A BlackRock Canada CorePlus Long Bond Fund BlackRock Canada CorePlus Universe Bond Fund BlackRock Canada Levered Long Bond Index Fund BlackRock Canada Levered Real Return Bond Index Fund BlackRock Balanced Moderate Index DC Fund BlackRock Balanced Conservative Index DC Fund BlackRock Balanced Aggressive Index DC Fund BlackRock CDN LifePath Retirement Index Fund I BlackRock CDN LifePath Index 2010 Retirement Fund BlackRock CDN LifePath 2015 Index Fund BlackRock CDN LifePath 2020 Index Fund BlackRock CDN LifePath 2025 Index Fund BlackRock CDN LifePath 2030 Index Fund BlackRock CDN LifePath 2035 Index Fund BlackRock CDN LifePath 2040 Index Fund BlackRock CDN LifePath 2045 Index Fund BlackRock CDN LifePath 2050 Index Fund BlackRock Balanced Active Fund BlackRock CDN Global Market Selection Class A BlackRock CDN Short Term Index Class A BlackRock CDN Short Term Index Class D BlackRock CDN MSCI EAFE Equity Index Class A BlackRock CDN MSCI EAFE Equity Index Class D

339 Notes to Financial Statements December 31, 2012 Fund/Class As at December 31, 2012 As at December 31, 2011 Net Asset Value Per Unit Net Assets Per Unit Net Asset Value Per Unit Net Assets Per Unit BlackRock CDN MSCI EAFE Index Hedged Fund $11.02 $11.02 $9.36 $9.36 BlackRock CDN MSCI ACWI ex-canada Index Fund BlackRock CDN MSCI Emerging Markets Index Class A BlackRock CDN MSCI EAFE Index Plus Fund BlackRock CDN Global Equity Focus Fund BlackRock CDN Global Developed Real Estate Index Class D BlackRock CDN Global Infrastructure Equity Index Class D BlackRock CDN Emerging Markets Fundamental Index Fund * For additional information, refer to Note 1 (c) 12. Financial instrument risk a. Valuation of financial instruments The Funds are required to classify fair measurement using a fair hierarchy that reflects the significance of inputs used in making the measurements. The fair hierarchy has the following levels: Level 1: Quoted market price in an active market for an identical instrument. Example of securities that are priced at Level 1 include listed equities, exchange traded derivatives and exchange-traded funds. The Fund does not adjust the quoted price for these instruments. A financial instrument is regarded as quoted in an active market if quoted prices are readily or regularly available from an exchange or prices that represent actual and regularly occurring market transactions on an arm s length basis. Level 2: Valuation techniques used to price securities are based on observable inputs. This category includes instruments d 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. Examples of securities that are priced at Level 2 include money market, bonds and forward contracts. Valuation techniques used for non-standardized financial instruments such as options, currency swaps or other over-the-counter derivatives, include the use of comparable recent arm s length transactions, reference to other instruments that are substantially the same, discounted cash flow analysis, options pricing models and other valuation techniques commonly used by market participants making the maximum use of market inputs and relying as little as possible on entity-specific inputs. Level 3: Valuation techniques using significant unobservable inputs. This category includes all instruments where the valuation technique includes inputs not based on observable data and the unobservable inputs can have a significant impact on the instrument s valuation. This also includes instruments that are d based on quoted prices for similar instruments where significant unobservable adjustments or assumptions are required to reflect differences between the instruments, and instruments for which there is no active market. The determination of what constitutes observable requires significant judgment by BlackRock Canada. BlackRock Canada considers observable data 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. Tables below present the hierarchical classification of the financial instruments measured at fair as at December 31, 2012 and December 31, The Funds held no financial instruments that are categorized as Level 3. There were no significant transfers between the levels during the period. i) Equity funds As at December 31, 2012 Level 1 Level 2 Fund Equities (000 s CAD) Net Futures (000 s CAD) Equities (000 s CAD) Money Market Investments (000 s CAD) Net Forward Currency Contracts (000 s CAD) Other Financial Instruments (000 s CAD) Total ($) (000 s CAD) BlackRock Canadian Equity Index Fund 4,096, ,097,635 BlackRock CDN MSCI Canada IMI Index Fund 1,126, ,126,733 BlackRock CDN US Equity Index Non-Taxable Fund 4,236,191 (166) - 8, ,244,652 BlackRock CDN US Equity Index Plus Non-Taxable Fund 263, ,

340 Notes to Financial Statements December 31, 2012 As at December 31, 2012 Level 1 Level 2 Fund Equities (000 s CAD) Net Futures (000 s CAD) Equities (000 s CAD) Money Market Investments (000 s CAD) Net Forward Currency Contracts (000 s CAD) Other Financial Instruments (000 s CAD) Total ($) (000 s CAD) BlackRock CDN US Equity Index Fund 2,684,092 (127) - 4, ,688,803 BlackRock CDN US Alpha Tilts Non-Taxable Fund 434,000 (12) ,988 BlackRock CDN Russell 3000 Index Non-Taxable Fund 393, ,397 BlackRock Active Canadian Equity Fund 2,080, ,080,762 BlackRock Active Canadian Equity Ex-Income Trusts Fund 532, ,484 BlackRock Active Canadian Equity DC Fund 666, ,071 BlackRock Active Canadian Equity Small Cap Fund 78, ,812 BlackRock Canada Alpha Advantage Fund* 351, ,634 BlackRock CDN MSCI EAFE Equity Index Fund 2,844, ,845,009 BlackRock CDN MSCI Emerging Markets Index Fund 370, ,633 BlackRock CDN MSCI EAFE Index Plus Fund 628, ,514 BlackRock CDN Global Equity Focus Fund 74, ,714 BlackRock CDN Global Developed Real Estate Index Fund 366, ,428 BlackRock CDN Global Infrastructure Equity Index Fund 208, ,416 BlackRock CDN Emerging Markets Fundamental Index Fund 95, ,624 * The fair for equities is comprised of 458,253 from Long positions and (106,685) from Short positions As at December 31, 2011 Level 1 Level 2 Fund Equities (000 s CAD) Net Futures (000 s CAD) Equities (000 s CAD) Money Market Investments (000 s CAD) Net Forward Currency Contracts (000 s CAD) Other Financial Instruments (000 s CAD) Total ($) (000 s CAD) BlackRock Canadian Equity Index Fund 3,194, ,194,676 BlackRock Canadian Equity Ex-Trusts Index Fund 84, ,379 BlackRock CDN MSCI Canada IMI Index Fund 955, ,341 BlackRock CDN US Equity Index Non-Taxable Fund 3,585, , ,592,561 BlackRock CDN US Equity Index Plus Non-Taxable Fund 182,577 (15) ,868 BlackRock CDN US Equity Index Fund 1,729, , ,732,286 BlackRock CDN US Alpha Tilts Non-Taxable Fund 451, ,699 BlackRock CDN Russell 3000 Index Non-Taxable Fund 373, , ,962 BlackRock Active Canadian Equity Fund 1,630, ,630,883 BlackRock Active Canadian Equity Ex-Income Trusts Fund 1,213, ,213,362 BlackRock Active Canadian Equity DC Fund 520, ,678 BlackRock Active Canadian Equity Small Cap Fund 132, ,619 BlackRock Canada Alpha Advantage Fund* 98, ,263 BlackRock CDN MSCI EAFE Equity Index Fund 2,096, ,096,306 BlackRock CDN MSCI Emerging Markets Index Fund 265,713 (3) ,710 BlackRock CDN MSCI EAFE Index Plus Fund 549, ,622 BlackRock CDN Global Equity Focus Fund 50, ,101 BlackRock CDN Emerging Markets Fundamental Index Fund 24, ,917 * The fair for equities is comprised of 126,698 from Long positions and (28,469) from Short positions 340

341 Notes to Financial Statements December 31, 2012 ii) Fixed income funds As at December 31, 2012 Level 1 Level 2 Fund Net Futures (000 s CAD) Money Market Investments/ Debt Securities (000 s CAD) Other Funds (000 s CAD) Net Forward Currency Contracts (000 s CAD) Other Financial Instruments* (000 s CAD) Total ($) (000 s CAD) BlackRock Canada Universe Bond Index Fund - 6,631, ,631,030 BlackRock Canada ex-bbb Universe Bond Index Fund 246, ,387 BlackRock Canada Real Return Bond Index Fund - 912, ,629 BlackRock Canada Long Bond Index Fund - 9,273, ,273,510 BlackRock Canada Long Government Bond Index Fund - 420, ,300 BlackRock Canada All Government Bond Index Fund - 157, ,484 BlackRock Canada Credit-Screened Bond Index Fund - 287, ,495 BlackRock Canada CoreActive Universe Bond Fund (2) 95, ,518 BlackRock Canada CorePlus Long Bond Fund - 1,062, ,168 (1,247) (516,652) 1,068,618 BlackRock Canada CorePlus Universe Bond Fund (2) 102,223 51,331 (121) (52,317) 101,114 BlackRock CDN Short Term Index Fund - 177, ,540 As at December 31, 2011 Level 1 Level 2 Fund Net Futures (000 s CAD) Money Market Investments/ Debt Securities (000 s CAD) Other Funds (000 s CAD) Net Forward Currency Contracts (000 s CAD) Other Financial Instruments* (000 s CAD) Total ($) (000 s CAD) BlackRock Canada Universe Bond Index Fund - 7,221, ,221,058 BlackRock Canada ex-bbb Universe Bond Index Fund - 584, ,948 BlackRock Canada Real Return Bond Index Fund - 792, ,498 BlackRock Canada Long Bond Index Fund - 7,356, ,356,149 BlackRock Canada Long Government Bond Index Fund - 574, ,171 BlackRock Canada All Government Bond Index Fund - 164, ,473 BlackRock Canada Credit-Screened Bond Index Fund - 159, ,333 BlackRock Canada CoreActive Universe Bond Fund 2 90, ,793 BlackRock Canada CorePlus Long Bond Fund - 753, ,939 6,370 (392,091) 758,929 BlackRock Canada CorePlus Universe Bond Fund - 93,857 48, (10,820) 132,025 BlackRock CDN Short Term Index Fund - 51, ,898 * Repurchase Agreement iii) Funds holding investment funds (Fund of Funds) As at December 31, 2012 Level 1 Level 2 Fund Exchange Traded Funds (000 s CAD) Net Futures (000 s CAD) Other Funds (000 s CAD) Net Forward Currency Contracts (000 s CAD) Other Financial Instruments** (000 s CAD) Total ($) (000 s CAD) BlackRock CDN US Equity Index Hedged Non-Taxable Fund ,656 (1,368) - 803,288 BlackRock CDN US Alpha Tilts Hedged Non-Taxable Fund ,516 (30) - 28,486 BlackRock Canada Levered Long Bond Index Fund , ,493 BlackRock Canada Levered Real Return Bond Index Fund , ,808 BlackRock Balanced Moderate Index DC Fund 106, , ,085,396 BlackRock Balanced Conservative Index DC Fund 50, , ,013 BlackRock Balanced Aggressive Index DC Fund 29, , ,070 BlackRock CDN LifePath Retirement Index Fund I 17, , ,598 BlackRock CDN LifePath Index 2010 Retirement Fund 10, , ,

342 Notes to Financial Statements December 31, 2012 As at December 31, 2012 Level 1 Level 2 Fund Exchange Traded Funds (000 s CAD) Net Futures (000 s CAD) Other Funds (000 s CAD) Net Forward Currency Contracts (000 s CAD) Other Financial Instruments** (000 s CAD) Total ($) (000 s CAD) BlackRock CDN LifePath 2015 Index Fund 47, , ,711 BlackRock CDN LifePath 2020 Index Fund 101, , ,045,377 BlackRock CDN LifePath 2025 Index Fund 86, , ,856 BlackRock CDN LifePath 2030 Index Fund 87, , ,263 BlackRock CDN LifePath 2035 Index Fund 50, , ,926 BlackRock CDN LifePath 2040 Index Fund 40, , ,632 BlackRock CDN LifePath 2045 Index Fund 22, , ,651 BlackRock CDN LifePath 2050 Index Fund 579-6, ,945 BlackRock Balanced Active Fund 3,484-31, ,050 BlackRock CDN Global Market Selection Fund ,907 (609) - 711,298 BlackRock CDN MSCI EAFE Index Hedged Fund ,585 (215) - 191,370 BlackRock CDN MSCI ACWI ex-canada Index Fund 51, , ,998 As at December 31, 2011 Level 1 Level 2 Fund Exchange Traded Funds (000 s CAD) Net Futures (000 s CAD) Other Funds (000 s CAD) Net Forward Currency Contracts (000 s CAD) Other Financial Instruments** (000 s CAD) Total ($) (000 s CAD) BlackRock CDN US Equity Index Hedged Non-Taxable Fund ,925 12, ,785 BlackRock CDN US Alpha Tilts Hedged Non-Taxable Fund , ,785 BlackRock Canada Levered Long Bond Index Fund ,094-2,258 34,352 BlackRock Canada Levered Real Return Bond Index Fund ,624-3,518 37,142 BlackRock Balanced Moderate Index DC Fund 88, , ,747 BlackRock Balanced Conservative Index DC Fund 40, , ,253 BlackRock Balanced Aggressive Index DC Fund 24, , ,745 BlackRock CDN LifePath Retirement Index Fund I 35,510-94, ,511 BlackRock CDN LifePath Index 2010 Retirement Fund 31,868-84, ,533 BlackRock CDN LifePath 2015 Index Fund 109, , ,074 BlackRock CDN LifePath 2020 Index Fund 232, , ,091 BlackRock CDN LifePath 2025 Index Fund 159, , ,902 BlackRock CDN LifePath 2030 Index Fund 168, , ,230 BlackRock CDN LifePath 2035 Index Fund 87, , ,007 BlackRock CDN LifePath 2040 Index Fund 76, , ,429 BlackRock CDN LifePath 2045 Index Fund 32,689-90, ,044 BlackRock Balanced Active Fund 3,038-28, ,015 BlackRock CDN Global Market Selection Fund ,520 26, ,504 BlackRock CDN MSCI EAFE Index Hedged Fund ,006 11, ,395 BlackRock CDN MSCI ACWI ex-canada Index Fund 17, , ,115 ** Total Return Swaps b. Strategy in using financial instruments The Funds activities expose them to a variety of financial risks: market risk (including currency risk, interest rate risk, and other market risk), credit risk and liquidity risk. The Funds overall risk management program focuses on the processes, strategies, and the objectives of each Fund. a) Index funds the overall risk management program focuses on processes and strategies to minimize tracking between each Fund s performance and the performance of the relevant index. b) Active funds the overall risk management program seeks to minimize the potentially adverse effect of risk on each Fund s performance in a manner consistent with their investment objective. 342

343 Notes to Financial Statements December 31, 2012 c) Funds invested in other funds the level of risk depends on the investment objective of the Fund, and the type of securities in which the Fund invests. The focus is on the overall asset allocation strategy of the Funds rather than the exposure of the underlying funds. c. Currency risk Currency risk arises from financial instruments that are denominated in a currency other than the Canadian dollar, which is the Funds reporting currency. To the extent that they have not mitigated this risk through the use of currency forward contracts, these Funds are exposed to the risk that the of the financial instruments denominated in other currencies will fluctuate due to changes in foreign exchange rates. The tables below indicate the currencies, other than the Canadian dollar, to which the Funds had net direct exposure of at least 2% of net assets on its trading of financial instruments and cash, as applicable, after taking into account the underlying principal amount of forward currency contracts used to hedge such currency exposures, as applicable. The tables also indicate the effect on net assets, had the Canadian dollar strengthened or weakened by 5% in relation to each currency as at December 31, 2012 and 5% as at December 31, In practice, the actual results may differ from this sensitivity analysis and the difference could be material. As at December 31, 2012 Fund Currency Financial Instruments (CAD) Forward Currency Contracts (CAD) Net Exposure (CAD) Net Exposure as a Percentage of Net Assets (%) Change in CAD Currency (%) Effect on Net Assets (000 s CAD) BlackRock CDN US Equity Index Non-Taxable Fund USD 4,316,329,698-4,316,329, /- 5 -/+ 205,540 BlackRock CDN US Equity Index Plus Non-Taxable Fund USD 265,749, ,749, /- 5 -/+ 12,655 BlackRock CDN US Equity Index Fund USD 2,740,160,972-2,740,160, /- 5 -/+ 130,484 BlackRock CDN US Alpha Tilts Non-Taxable Fund USD 436,677, ,677, /- 5 -/+ 20,794 BlackRock CDN Russell 3000 Index Non Taxable Fund USD 399,740, ,740, /- 5 -/+ 19,035 BlackRock Balanced Moderate Index DC Fund USD 80,287,392-80,287, /- 5 -/+ 3,823 BlackRock Balanced Conservative Index DC Fund USD 35,740,522-35,740, /- 5 -/+ 1,702 BlackRock Balanced Aggressive Index DC Fund USD 22,931,152-22,931, /- 5 -/+ 1,092 BlackRock CDN LifePath Retirement Index Fund I USD 17,831,667-17,831, /- 5 -/+ 849 BlackRock CDN LifePath Index 2010 Retirement Fund USD 10,761,705-10,761, /- 5 -/+ 512 BlackRock CDN LifePath 2015 Index Fund USD 47,122,251-47,122, /- 5 -/+ 2,244 BlackRock CDN LifePath 2020 Index Fund USD 101,671, ,671, /- 5 -/+ 4,842 BlackRock CDN LifePath 2025 Index Fund USD 86,751,334-86,751, /- 5 -/+ 4,131 BlackRock CDN LifePath 2030 Index Fund USD 87,782,581-87,782, /- 5 -/+ 4,180 BlackRock CDN LifePath 2035 Index Fund USD 50,440,344-50,440, /- 5 -/+ 2,402 BlackRock CDN LifePath 2040 Index Fund USD 40,707,517-40,707, /- 5 -/+ 1,938 BlackRock CDN LifePath 2045 Index Fund USD 22,796,230-22,796, /- 5 -/+ 1,086 BlackRock CDN LifePath 2050 Index Fund USD 580, , /- 5 -/+ 28 BlackRock Balanced Active Fund USD 12,710,111-12,710, /- 5 -/+ 605 BlackRock CDN MSCI EAFE Equity Index Fund AUD 255,824, ,824, /- 5 -/+ 12,182 CHF 250,117, ,117, /- 5 -/+ 11,910 DKK 32,885,461-32,885, /- 5 -/+ 1,566 EUR 826,791, ,791, /- 5 -/+ 39,371 GBP 648,720, ,720, /- 5 -/+ 30,891 ILS 15,781,881-15,781, /- 5 -/+ 752 HKD 90,191,791-90,191, /- 5 -/+ 4,295 JPY 573,680, ,680, /- 5 -/+ 27,318 NOK 26,297,380-26,297, /- 5 -/+ 1,252 NZD 3,493,394-3,493, /- 5 -/+ 166 SEK 89,771,867-89,771, /- 5 -/+ 4,275 SGD 52,185,516-52,185, /- 5 -/+ 2,

344 Notes to Financial Statements December 31, 2012 As at December 31, 2012 Fund Currency Financial Instruments (CAD) Forward Currency Contracts (CAD) Net Exposure (CAD) Net Exposure as a Percentage of Net Assets (%) Change in CAD Currency (%) Effect on Net Assets (000 s CAD) USD 1,762,648-1,762, /- 5 -/+ 84 Total: BlackRock CDN MSCI EAFE Equity Index Fund 2,867,503,830-2,867,503, /+ 136,547 BlackRock CDN MSCI ACWI ex-canada Index Fund USD 51,437,389-51,437, /- 5 -/+ 2,449 BlackRock CDN MSCI Emerging Markets Index Fund BRL 47,258,480-47,258, /- 5 -/+ 2,250 CLP 6,489,578-6,489, /- 5 -/+ 309 CNY 27,505-27, /- 5 -/+ 1 COP 4,717,623-4,717, /- 5 -/+ 225 CZK 1,060,984-1,060, /- 5 -/+ 51 EGP 1,077,525-1,077, /- 5 -/+ 51 HKD 67,877,474-67,877, /- 5 -/+ 3,232 HUF 814, , /- 5 -/+ 39 IDR 9,720,297-9,720, /- 5 -/+ 463 INR 24,729,411-24,729, /- 5 -/+ 1,178 KRW 56,403,385-56,403, /- 5 -/+ 2,686 MAD 409, , /- 5 -/+ 20 MXN 19,243,139-19,243, /- 5 -/+ 916 MYR 12,947,863-12,947, /- 5 -/+ 617 PHP 3,374,498-3,374, /- 5 -/+ 161 PLN 5,785,791-5,785, /- 5 -/+ 276 RUB 18,588,530-18,588, /- 5 -/+ 885 THB 9,019,540-9,019, /- 5 -/+ 430 TRY 7,342,606-7,342, /- 5 -/+ 350 TWD 39,586,902-39,586, /- 5 -/+ 1,885 USD 7,626,702-7,626, /- 5 -/+ 363 ZAR 28,694,884-28,694, /- 5 -/+ 1,366 Total: BlackRock CDN MSCI Emerging Markets Index Fund 372,796, ,796, /+ 17,754 BlackRock CDN MSCI EAFE Index Plus Fund AUD 56,914,323-56,914, /- 5 -/+ 2,710 CHF 55,417,638-55,417, /- 5 -/+ 2,639 DKK 7,263,031-7,263, /- 5 -/+ 346 EUR 184,423, ,423, /- 5 -/+ 8,782 GBP 142,419, ,419, /- 5 -/+ 6,782 ILS 3,454,802-3,454, /- 5 -/+ 165 HKD 19,866,849-19,866, /- 5 -/+ 946 JPY 127,011, ,011, /- 5 -/+ 6,048 NOK 5,857,694-5,857, /- 5 -/+ 279 NZD 793, , /- 5 -/+ 38 SEK 19,857,097-19,857, /- 5 -/+ 946 SGD 11,514,331-11,514, /- 5 -/+ 548 USD 1,133,151-1,133, /- 5 -/+ 54 Total: BlackRock CDN MSCI EAFE Index Plus Fund 635,926, ,926, /+ 30,283 BlackRock CDN Global Equity Focus Fund CHF 3,950,499-3,950, /- 5 -/+ 188 EUR 6,844,366-6,844, /- 5 -/+ 326 GBP 12,492,430-12,492, /- 5 -/

345 Notes to Financial Statements December 31, 2012 As at December 31, 2012 Fund Currency Financial Instruments (CAD) Forward Currency Contracts (CAD) Net Exposure (CAD) Net Exposure as a Percentage of Net Assets (%) Change in CAD Currency (%) Effect on Net Assets (000 s CAD) IDR 1,100,322-1,100, /- 5 -/+ 52 JPY 2,279,839-2,279, /- 5 -/+ 109 KRW 742, , /- 5 -/+ 35 SEK 2,760,719-2,760, /- 5 -/+ 131 USD 43,728,510-43,728, /- 5 -/+ 2,082 Total: BlackRock CDN Global Equity Focus Fund 73,899,362-73,899, /+ 3,518 BlackRock CDN Global Developed Real Estate Index Fund AUD 29,853,318-29,853, /- 5 -/+ 1,422 CHF 4,398,351-4,398, /- 5 -/+ 209 EUR 23,806,158-23,806, /- 5 -/+ 1,134 GBP 18,997,800-18,997, /- 5 -/+ 905 HKD 38,563,952-38,563, /- 5 -/+ 1,836 ILS 347, , /- 5 -/+ 17 JPY 40,354,505-40,354, /- 5 -/+ 1,922 NOK 283, , /- 5 -/+ 13 NZD 342, , /- 5 -/+ 16 SEK 3,862,416-3,862, /-5 -/+ 184 SGD 18,864,564-18,864, /-5 -/+ 898 USD 168,384, ,384, /-5 -/+ 8,018 Total: BlackRock CDN Global Developed Real Estate Index Fund 348,059, ,059, ,574 BlackRock CDN Global Infrastructure Equity Index Fund AUD 9,037,833-9,037, /- 5 -/+ 430 CHF 621, , /-5 -/+ 30 EUR 25,978,459-25,978, /- 5 -/+ 1,237 GBP 22,381,579-22,381, /- 5 -/+ 1,066 HKD 10,938,273-10,938, /- 5 -/+ 521 JPY 5,131,850-5,131, /- 5 -/+ 244 NZD 794, , /- 5 -/+ 38 USD 102,440, ,440, /- 5 -/+ 4,878 Total: BlackRock CDN Global Infrastructure Equity Index Fund 177,324, ,324, ,444 BlackRock Emerging Markets Fundamental Index Fund BRL 16,593,156-16,593, /- 5 -/+ 790,150 CZK 739, , /- 5 -/+ 35,223 HKD 16,869,884-16,869, /- 5 -/+ 803,328 HUF 1,025,808-1,025, /- 5 -/+ 48,848 IDR 425, , /- 5 -/+ 20,258 INR 3,175,786-3,175, /- 5 -/+ 151,228 MXN 2,778,326-2,778, /- 5 -/+ 132,301 MYR 2,127,892-2,127, /- 5 -/+ 101,328 PLN 2,850,268-2,850, /- 5 -/+ 135,727 THB 1,824,825-1,824, /- 5 -/+ 86,896 TRY 2,864,141-2,864, /- 5 -/+ 136,388 TWD 16,952,171-16,952, /- 5 -/+ 807,246 USD 18,359,927-18,359, /- 5 -/+ 874,282 ZAR 9,809,785-9,809, /- 5 -/+ 467,133 Total: BlackRock Emerging Markets Fundamental Index Fund 96,397,058-96,397, /+ 4,590,

346 Notes to Financial Statements December 31, 2012 As at December 31, 2011 Fund Currency Financial Instruments (CAD) Forward Currency Contracts (CAD) Net Exposure (CAD) Net Exposure as a Percentage of Net Assets (%) Change in CAD Currency (%) Effect on Net Assets (000 s CAD) BlackRock CDN US Equity Index Non- Taxable Fund USD 3,685,899,868-3,685,899, /-5 -/+ 175,519 BlackRock CDN US Equity Index Plus Non- Taxable Fund USD 185,635, ,635, /-5 -/+ 8,840 BlackRock CDN US Equity Index Fund USD 1,775,509,135-1,775,509, /-5 -/+ 84,548 BlackRock CDN US Alpha Tilts Non-Taxable Fund USD 454,355, ,355, /-5 -/+ 21,636 BlackRock CDN Russell 3000 Index Non- Taxable Fund USD 376,426, ,426, /-5 -/+ 17,925 BlackRock Canada CorePlus Long Bond Fund USD 391,054,033 (364,502,498) 26,551, /-5 -/+ 1,264 BlackRock Balanced Moderate Index DC Fund USD 64,842,717-64,842, /-5 -/+ 3,088 BlackRock Balanced Conservative Index DC Fund USD 27,837,715-27,837, /-5 -/+ 1,326 BlackRock Balanced Aggressive Index DC Fund USD 18,702,872-18,702, /-5 -/+ 891 BlackRock CDN LifePath Retirement Index Fund I USD 15,619,031-15,619, /-5 -/+ 744 BlackRock CDN LifePath Index 2010 Retirement Fund USD 13,781,918-13,781, /-5 -/+ 656 BlackRock CDN LifePath 2015 Index Fund USD 50,218,871-50,218, /-5 -/+ 2,391 BlackRock CDN LifePath 2020 Index Fund USD 113,800, ,800, /-5 -/+ 5,419 BlackRock CDN LifePath 2025 Index Fund USD 85,549,289-85,549, /-5 -/+ 4,074 BlackRock CDN LifePath 2030 Index Fund USD 96,474,863-96,474, /-5 -/+ 4,594 BlackRock CDN LifePath 2035 Index Fund USD 54,156,697-54,156, /-5 -/+ 2,579 BlackRock CDN LifePath 2040 Index Fund USD 50,895,442-50,895, /-5 -/+ 2,424 BlackRock CDN LifePath 2045 Index Fund USD 23,386,672-23,386, /-5 -/+ 1,114 BlackRock Balanced Active Fund USD 11,280,119-11,280, /-5 -/+ 537 BlackRock CDN MSCI EAFE Equity Index Fund AUD 181,291, ,291, /-5 -/+ 8,633 CHF 183,666, ,666, /-5 -/+ 8,746 DKK 22,106,792-22,106, /-5 -/+ 1,053 EUR 581,812, ,812, /-5 -/+ 27,705 GBP 492,462, ,462, /-5 -/+ 23,451 HKD 58,979,179-58,979, /-5 -/+ 2,809 ILS 13,696,950-13,696, /-5 -/+ 652 JPY 455,421, ,421, /-5 -/+ 21,687 NOK 19,556,803-19,556, /-5 -/+ 931 NZD 2,452,036-2,452, /-5 -/+ 117 SEK 64,935,394-64,935, /-5 -/+ 3,092 SGD 34,359,109-34,359, /-5 -/+ 1,636 USD 550, , /-5 -/+ 26 Total: BlackRock CDN MSCI EAFE Equity Index Fund 2,111,290,239-2,111,290, /+ 100,538 BlackRock CDN MSCI ACWI ex-canada Index Fund USD 17,390, ,390, /-5 -/+ 828 BlackRock CDN MSCI Emerging Markets Index Fund BRL 39,801,015-39,801, /-5 -/+ 1,895 CLP 4,726,264-4,726, /-5 -/+ 225 CNY 28,975-28, /-5 -/

347 Notes to Financial Statements December 31, 2012 As at December 31, 2011 Fund Currency Financial Instruments (CAD) Forward Currency Contracts (CAD) Net Exposure (CAD) Net Exposure as a Percentage of Net Assets (%) Change in CAD Currency (%) Effect on Net Assets (000 s CAD) COP 2,552,837-2,552, /-5 -/+ 122 CZK 931, , /-5 -/+ 44 EGP 697, , /-5 -/+ 33 HKD 47,130,560-47,130, /-5 -/+ 2,244 HUF 759, , /-5 -/+ 36 IDR 7,884,024-7,884, /-5 -/+ 375 INR 15,282,908-15,282, /-5 -/+ 728 KRW 39,766,625-39,766, /-5 -/+ 1,894 MAD 424, , /-5 -/+ 20 MXN 12,445,208-12,445, /-5 -/+ 593 MYR 9,424,277-9,424, /-5 -/+ 449 PEN 113, , /-5 -/+ 5 PHP 1,958,690-1,958, /-5 -/+ 93 PLN 3,620,929-3,620, /-5 -/+ 172 RUB 14,445,084-14,445, /-5 -/+ 688 THB 5,079,874-5,079, /-5 -/+ 242 TRY 3,310,762-3,310, /-5 -/+ 158 TWD 9,645-9, /-5 -/+ - USD 6,049,691-6,049, /-5 -/+ 288 ZAR 20,862,466-20,862, /-5 -/+ 993 Total: BlackRock CDN MSCI Emerging Markets Index Fund 237,306, ,306, /+ 11,298 BlackRock CDN MSCI EAFE Index Plus Fund AUD 47,592,720-47,592, /-5 -/+ 2,266 CHF 47,542,925-47,542, /-5 -/+ 2,264 DKK 5,743,342-5,743, /-5 -/+ 273 EUR 152,448, ,448, /-5 -/+ 7,259 GBP 129,730, ,730, /-5 -/+ 6,178 HKD 15,293,189-15,293, /-5 -/+ 728 ILS 3,609,073-3,609, /-5 -/+ 172 JPY 118,569, ,569, /-5 -/+ 5,646 NOK 5,178,702-5,178, /-5 -/+ 247 NZD 735, , /-5 -/+ 35 SEK 17,002,455-17,002, /-5 -/+ 810 SGD 8,948,531-8,948, /-5 -/+ 426 USD 2,835,585-2,835, /-5 -/+ 135 Total: BlackRock CDN MSCI EAFE Index Plus Fund 555,229, ,229, /+ 26,439 BlackRock CDN Global Equity Focus Fund BRL 789, , /-5 -/+ 38 CHF 5,123,033 (1,774,120) 3,348, /-5 -/+ 159 EUR 8,409,084 (642,994) 7,766, /-5 -/+ 370 GBP 5,126,103-5,126, /-5 -/+ 244 HKD 1,104,656-1,104, /-5 -/+ 53 JPY 3,275, ,345 3,927, /-5 -/+ 187 USD 24,765,602 1,785,840 26,551, /-5 -/+ 1,264 ZAR 603, , /-5 -/+ 29 Total: BlackRock CDN Global Equity Focus Fund 49,197,035 21,071 49,218, /+ 2,

348 Notes to Financial Statements December 31, 2012 As at December 31, 2011 Fund Currency Financial Instruments (CAD) Forward Currency Contracts (CAD) Net Exposure (CAD) Net Exposure as a Percentage of Net Assets (%) Change in CAD Currency (%) Effect on Net Assets (000 s CAD) BlackRock Emerging Markets Fundamental Index Fund BRL 4,348,772-4,348, /-5 -/+ 207,084 CZK 204, , /-5 -/+ 9,758 HKD 3,881,175-3,881, /-5 -/+ 184,818 HUF 160, , /-5 -/+ 7,632 IDR 423, , /-5 -/+ 20,159 INR 1,378,431-1,378, /-5 -/+ 65,640 MXN 1,345,263-1,345, /-5 -/+ 64,060 PLN 449, , /-5 -/+ 21,398 THB 446, , /-5 -/+ 21,241 TWD 4,475,451-4,475, /-5 -/+ 213,117 USD 5,105,362-5,105, /-5 -/+ 243,112 ZAR 2,924,111-2,924, /-5 -/+ 139,243 Total: BlackRock Emerging Markets Fundamental Index Fund 25,142,514-25,142, /+ 1,197,263 The direct exposure to currency risk for the Funds that are invested in other funds d in Canadian dollars is minimal. If the underlying funds are d in currencies other than Canadian dollars, the direct exposure to currency risk can be material. The Funds invested in other funds that are d in Canadian dollars may have indirect exposure to currency risk if underlying funds are invested in financial instruments that are denominated in currencies other than Canadian dollars. d. Interest rate risk Interest rate risk arises on interest bearing financial instruments, such as bonds and fixed income derivatives held in an investment portfolio. The Funds are exposed to the risk that the of interest bearing financial instruments will fluctuate due to changes in the prevailing levels of market interest rates. Tables below summarize the fixed income Funds fair market exposure, categorized by maturity date or repricing date, whichever is earlier, and not including notional exposure, to interest rate risk as well as management s estimate of the interest rate sensitivity of the net assets due to a 1% change in interest rates, assuming a parallel shift in the yield curve, with all other factors remaining constant, as at December 31, 2012 and December 31, Interest rate sensitivity for each Fund is determined based on the weighted average of modified duration of the portfolio. In practice, actual results may differ from this sensitivity analysis and the differences can be material. As at December 31, 2012 Fund <1 year (CAD) 1-3 years (CAD) 3-5 years (CAD) >5 years (CAD) Total (CAD)* Change in Rate (%) Effect on Net Assets (000 s CAD) BlackRock Canada Universe Bond Index Fund - 1,560,800,758 1,275,323,287 3,794,905,804 6,631,029,849 +/-1 -/+ 465,831 BlackRock Canada ex-bbb Universe Bond Index Fund - 59,324,051 48,272, ,791, ,387,431 +/-1 -/+ 17,374 BlackRock Canada Real Return Bond Index Fund ,628, ,628,751 +/- 1 -/+ 148,581 BlackRock Canada Long Bond Index Fund ,273,510,310 9,273,510,310 +/- 1 -/+ 1,322,349 BlackRock Canada Long Government Bond Index Fund ,300, ,300,009 +/- 1 -/+ 60,800 BlackRock Canada All Government Bond Index Fund - 40,442,037 26,151,538 90,890, ,484,364 +/- 1 -/+ 11,627 BlackRock Canada Credit-Screened Bond Index Fund - 50,879,369 69,626, ,989, ,495,494 +/-1 -/+ 17,417 BlackRock Canada CoreActive Universe Bond Fund - 21,940,728 19,674,304 53,905,157 95,520,189 +/-1 -/+ 6,

349 Notes to Financial Statements December 31, 2012 As at December 31, 2012 Fund <1 year (CAD) 1-3 years (CAD) 3-5 years (CAD) >5 years (CAD) Total (CAD)* Change in Rate (%) Effect on Net Assets (000 s CAD) BlackRock Canada CorePlus Long Bond Fund (516,652,187) - - 1,062,348, ,696,517 +/-1 -/+ 157,181 BlackRock Canada CorePlus Universe Bond Fund (52,317,081) 24,460,390 19,524,807 58,237,926 49,906,042 +/- 1 -/+ 7,754 BlackRock CDN Short Term Index Fund 177,540, ,540,253 +/- 1 -/+ 214 As at December 31, 2011 Fund <1 year (CAD) 1-3 years (CAD) 3-5 years (CAD) >5 years (CAD) Total (CAD)* Change in Rate (%) Effect on Net Assets (000 s CAD) BlackRock Canada Universe Bond Index Fund - 1,698,768,234 1,457,732,786 4,064,556,818 7,221,057,838 +/- 1 -/+ 498,506 BlackRock Canada ex-bbb Universe Bond Index Fund - 141,227, ,769, ,951, ,948,094 +/- 1 -/+ 40,257 BlackRock Canada Real Return Bond Index Fund - 5,068, ,429, ,497,547 +/- 1 -/+ 129,566 BlackRock Canada Long Bond Index Fund ,356,149,212 7,356,149,212 +/- 1 -/+ 1,027,916 BlackRock Canada Long Government Bond Index Fund ,171, ,171,451 +/- 1 -/+ 81,884 BlackRock Canada All Government Bond Index Fund - 44,623,003 29,304,037 90,545, ,472,619 +/- 1 -/+ 11,803 BlackRock Canada Credit-Screened Bond Index Fund - 22,418,646 36,972,483 99,942, ,333,440 +/- 1 -/+ 9,536 BlackRock Canada CoreActive Universe Bond Fund - 18,713,581 19,171,301 52,906,096 90,790,978 +/- 1 -/+ 6,550 BlackRock Canada CorePlus Long Bond Fund (392,091,386) ,710, ,619,422 +/- 1 -/+ 107,701 BlackRock Canada CorePlus Universe Bond Fund (10,820,178) 22,300,586 18,282,127 53,274,534 83,037,069 +/- 1 -/+ 6,835 BlackRock CDN Short Term Index Fund 51,897, ,897,513 +/- 1 -/+ 41 * Excludes cash, cash equivalents and investments in other funds The tables below summarize net notional derivatives futures exposure of fixed income Funds to interest rate risk as at December 31, 2012 and December 31, 2011, respectively, categorized by maturity date. As at December 31, 2012 Fund <1 year (CAD) 1-3 years (CAD) 3-5 years (CAD) >5 years (CAD) Total (CAD) BlackRock Canada CoreActive Universe Bond Fund (130,699) (130,699) BlackRock Canada CorePlus Universe Bond Fund (130,699) (130,699) As at December 31, 2011 Fund <1 year (CAD) 1-3 years (CAD) 3-5 years (CAD) >5 years (CAD) Total (CAD) BlackRock Canada CoreActive Universe Bond Fund , ,207 Funds invested in other funds may be exposed to indirect interest rate risk in the event the underlying funds are invested in interest bearing financial instruments. Certain funds are exposed to underlying funds through swap contracts see Note 6. e. Other market risk Other market risk is the risk that the of financial instruments may fluctuate as a result of changes in market prices (other than those arising from interest rate risk or currency risk). All securities present the risk of loss of capital due to market risk. The Funds moderate this risk through the use of various investment strategies within the parameters of the Funds investment guidelines. 349

350 Notes to Financial Statements December 31, 2012 Management s estimate of the effect on net assets due to a reasonable possible change in indices, with all other variables held constant, is shown in the tables below presenting the data as at December 31, 2012 and as at December 31, The estimate is calculated based on the percentage of a Fund s total net assets that are invested in financial instruments constituting the primary index. In practice the actual results may differ from the sensitivity analysis below and the differences can be material. Certain Funds engage in short selling activities, wherein it borrows securities and sells them to third parties. Until the Fund covers its short sales, it is exposed to market risk to the extent that subsequent market fluctuations may require purchasing securities sold, not yet purchased, at prices which may be significantly higher than the fair reflected in the financial statements. The Fund s collateral pledged to brokers is partially restricted until the Fund satisfies the obligation to deliver the securities sold, not yet purchased. As at December 31, 2012 Fund Market Indices Change in Market Prices (%) Effect on Net Assets (000 s CAD) BlackRock Canadian Equity Index Fund S&P/TSX Capped Composite Index +/- 10 +/- 409,663 BlackRock CDN MSCI Canada IMI Index Fund MSCI Canada IMI Index +/- 10 +/- 112,628 BlackRock CDN US Equity Index Non-Taxable Fund S&P 500 Index +/- 10 +/- 424,310 BlackRock CDN US Equity Index Plus Non-Taxable Fund S&P 500 Index +/- 10 +/- 26,362 BlackRock CDN US Equity Index Hedged Non-Taxable Fund S&P 500 Index +/- 10 +/- 80,501 BlackRock CDN US Equity Index Fund S&P 500 Index +/- 10 +/- 268,817 BlackRock CDN US Alpha Tilts Non-Taxable Fund S&P 500 Index +/- 10 +/- 43,403 BlackRock CDN US Alpha Tilts Hedged Non-Taxable Fund S&P 500 Index +/- 10 +/- 2,852 BlackRock CDN Russell 3000 Index Non-Taxable Fund Russell 3000 Index +/- 10 +/- 39,453 BlackRock Active Canadian Equity Fund S&P/TSX Capped Composite Index +/- 10 +/- 207,954 BlackRock Active Canadian Equity Ex-Income Trusts Fund S&P/TSX Capped Composite Index +/- 10 +/- 53,238 BlackRock Active Canadian Equity DC Fund S&P/TSX Capped Composite Index +/- 10 +/- 66,728 BlackRock Active Canadian Equity Small Cap Fund S&P/TSX Capped Composite Index +/- 10 +/- 7,876 BlackRock Canada Alpha Advantage Fund S&P/TSX Capped Composite Index +/- 10 +/- 35,139 BlackRock Canada Universe Bond Index Fund DEX Universe Bond Index +/- 10 +/- 662,707 BlackRock Canada ex-bbb Universe Bond Index Fund DEX Universe Bond Index +/- 10 +/- 24,635 BlackRock Canada Real Return Bond Index Fund DEX Real Return Bond Index +/- 10 +/- 91,308 BlackRock Canada Long Bond Index Fund DEX Long Term Bond Index +/- 10 +/- 927,717 BlackRock Canada Long Government Bond Index Fund DEX Long Term Government Bond Index +/- 10 +/- 42,017 BlackRock Canada All Government Bond Index Fund DEX Universe All Government Bond Index +/- 10 +/- 15,746 BlackRock Canada Credit-Screened Bond Index Fund DEX Universe All Corporate Bond Index +/- 10 +/- 28,735 BlackRock Canada CoreActive Universe Bond Fund DEX Universe Bond Index +/- 10 +/- 9,552 BlackRock Canada CorePlus Long Bond Fund DEX Long Term Bond Index +/- 10 +/- 158,692 BlackRock Canada CorePlus Universe Bond Fund DEX Universe Bond Index +/- 10 +/- 15,354 BlackRock Canada Levered Long Bond Index Fund DEX Long Term Bond Index +/- 10 +/- 11,260 BlackRock Canada Levered Real Return Bond Index Fund DEX Real Return Bond Index +/- 10 +/- 8,184 BlackRock CDN Short Term Index Fund DEX 91 Day T-Bill Index +/- 10 +/- 17,755 BlackRock CDN MSCI EAFE Equity Index Fund MSCI EAFE Index +/- 10 +/- 284,418 BlackRock CDN MSCI EAFE Index Hedged Fund MSCI EAFE Index +/- 10 +/- 19,152 BlackRock CDN MSCI Emerging Markets Index Fund MSCI Emerging Markets Index +/- 10 +/- 37,061 BlackRock CDN MSCI EAFE Index Plus Fund MSCI EAFE Index +/- 10 +/- 62,829 BlackRock CDN Global Equity Focus Fund MSCI World Index +/- 10 +/- 7,470 BlackRock CDN Global Developed Real Estate Index Fund FTSE EPRA/NAREIT Developed Index +/- 10 +/- 36,636 BlackRock CDN Global Infrastructure Equity Index Fund Dow Jones Brookfield Global Infrastructure Index +/- 10 +/- 20,838 BlackRock CDN Emerging Markets Fundamental Index Fund FTSE RAFI Emerging Index +/- 10 +/- 9,

351 Notes to Financial Statements December 31, 2012 The table below summarizes the other market risk impact for Funds invested in other funds as at December 31, Had the indices of the underlying funds in which the Funds invested increased or decreased by 10%, the net assets of the Funds invested in other funds would have increased or decreased by approximately 10% in proportion to the amount of such investment in underlying funds. As at December 31, 2012 Fund Change in Market Prices (%) Effect on Net Assets (000 s CAD) BlackRock Balanced Moderate Index DC Fund +/- 10 +/- 108,527 BlackRock Balanced Conservative Index DC Fund +/- 10 +/- 59,576 BlackRock Balanced Aggressive Index DC Fund +/- 10 +/- 26,703 BlackRock CDN LifePath Retirement Index Fund I +/- 10 +/- 20,258 BlackRock CDN LifePath Index 2010 Retirement Fund +/- 10 +/- 11,726 BlackRock CDN LifePath 2015 Index Fund +/- 10 +/- 51,567 BlackRock CDN LifePath 2020 Index Fund +/- 10 +/- 104,529 BlackRock CDN LifePath 2025 Index Fund +/- 10 +/- 80,978 BlackRock CDN LifePath 2030 Index Fund +/- 10 +/- 80,918 BlackRock CDN LifePath 2035 Index Fund +/- 10 +/- 49,090 BlackRock CDN LifePath 2040 Index Fund +/- 10 +/- 42,858 BlackRock CDN LifePath 2045 Index Fund +/- 10 +/- 26,361 BlackRock CDN LifePath 2050 Index Fund +/- 10 +/- 695 BlackRock Balanced Active Fund +/- 10 +/- 3,506 BlackRock CDN Global Market Selection Fund +/- 10 +/- 71,161 BlackRock CDN MSCI ACWI ex-canada Index Fund +/- 10 +/- 36,982 As at December 31, 2011 Fund Market Indices Change in Market Prices (%) Effect on Net Assets (000 s CAD) BlackRock Canadian Equity Index Fund S&P/TSX Capped Composite Index +/- 10 +/- 319,348 BlackRock Canadian Equity Ex-Trusts Index Fund S&P/TSX Equity Index +/- 10 +/- 8,438 BlackRock CDN MSCI Canada IMI Index Fund MSCI Canada IMI Index +/- 10 +/- 95,502 BlackRock CDN US Equity Index Non-Taxable Fund S&P 500 Index +/- 10 +/- 359,386 BlackRock CDN US Equity Index Plus Non-Taxable Fund S&P 500 Index +/- 10 +/- 18,295 BlackRock CDN US Equity Index Hedged Non-Taxable Fund S&P 500 Index +/- 10 +/- 75,501 BlackRock CDN US Equity Index Fund S&P 500 Index +/- 10 +/- 173,290 BlackRock CDN US Alpha Tilts Non-Taxable Fund S&P 500 Index +/- 10 +/- 45,170 BlackRock CDN US Alpha Tilts Hedged Non-Taxable Fund S&P 500 Index +/- 10 +/- 2,387 BlackRock CDN Russell 3000 Index Non-Taxable Fund Russell 3000 Index +/- 10 +/- 37,491 BlackRock Active Canadian Equity Fund S&P/TSX Index +/- 10 +/- 163,046 BlackRock Active Canadian Equity Ex-Income Trusts Fund S&P/TSX Equity Index +/- 10 +/- 121,344 BlackRock Active Canadian Equity DC Fund S&P/TSX Equity Index +/- 10 +/- 52,043 BlackRock Active Canadian Equity Small Cap Fund S&P/TSX Equity Completion Index +/- 10 +/- 13,258 BlackRock Canada Alpha Advantage Fund S&P/TSX Capped Composite Index +/- 10 +/- 12,669 BlackRock Canada Universe Bond Index Fund DEX Universe Bond Index +/- 10 +/- 722,325 BlackRock Canada ex-bbb Universe Bond Index Fund DEX Universe Bond Index +/- 10 +/- 58,502 BlackRock Canada Real Return Bond Index Fund DEX Real Return Bond Index +/- 10 +/- 79,281 BlackRock Canada Long Bond Index Fund DEX Long Term Bond Index +/- 10 +/- 735,287 BlackRock Canada Long Government Bond Index Fund DEX Long Term Government Bond Index +/- 10 +/- 57,406 BlackRock Canada All Government Bond Index Fund DEX Universe All Government Bond Index +/- 10 +/- 16,447 BlackRock Canada Credit-Screened Bond Index Fund DEX Universe All Corporate Bond Index +/- 10 +/- 15,931 BlackRock Canada CoreActive Universe Bond Fund DEX Universe Bond Index +/- 10 +/- 9,080 BlackRock Canada CorePlus Long Bond Fund DEX Long Term Bond Index +/- 10 +/- 114,480 BlackRock Canada CorePlus Universe Bond Fund DEX Universe Bond Index +/- 10 +/- 14,

352 Notes to Financial Statements December 31, 2012 As at December 31, 2011 Fund Market Indices Change in Market Prices (%) Effect on Net Assets (000 s CAD) BlackRock Canada Levered Long Bond Index Fund DEX Long Term Bond Index +/- 10 +/- 7,831 BlackRock Canada Levered Real Return Bond Index Fund DEX Real Return Bond Index +/- 10 +/- 7,986 BlackRock CDN Short Term Index Fund DEX 91 Day T-Bill Index +/- 10 +/- 5,189 BlackRock CDN MSCI EAFE Equity Index Fund MSCI EAFE Index +/- 10 +/- 209,707 BlackRock CDN MSCI EAFE Index Hedged Fund MSCI EAFE Index +/- 10 +/- 39,514 BlackRock CDN MSCI Emerging Markets Index Fund MSCI Emerging Markets Index +/- 10 +/- 26,585 BlackRock CDN MSCI EAFE Index Plus Fund MSCI EAFE Index +/- 10 +/- 54,969 BlackRock CDN Global Equity Focus Fund MSCI World Index +/- 10 +/- 5,010 BlackRock CDN Emerging Markets Fundamental Index Fund FTSE RAFI Emerging Index +/- 10 +/- 2,492 As at December 31, 2011 Fund Change in Market Prices (%) Effect on Net Assets (000 s CAD) BlackRock Balanced Moderate Index DC Fund +/- 10 +/- 91,673 BlackRock Balanced Conservative Index DC Fund +/- 10 +/- 48,923 BlackRock Balanced Aggressive Index DC Fund +/- 10 +/- 22,372 BlackRock CDN LifePath Retirement Index Fund I +/- 10 +/- 12,950 BlackRock CDN LifePath Index 2010 Retirement Fund +/- 10 +/- 11,652 BlackRock CDN LifePath 2015 Index Fund +/- 10 +/- 36,006 BlackRock CDN LifePath 2020 Index Fund +/- 10 +/- 71,908 BlackRock CDN LifePath 2025 Index Fund +/- 10 +/- 47,177 BlackRock CDN LifePath 2030 Index Fund +/- 10 +/- 51,423 BlackRock CDN LifePath 2035 Index Fund +/- 10 +/- 27,700 BlackRock CDN LifePath 2040 Index Fund +/- 10 +/- 26,541 BlackRock CDN LifePath 2045 Index Fund +/- 10 +/- 12,304 BlackRock Balanced Active Fund +/- 10 +/- 3,201 BlackRock CDN Global Market Selection Fund +/- 10 +/- 86,974 BlackRock CDN MSCI ACWI ex-canada Index Fund +/- 10 +/- 13,017 f. Credit risk The Funds are exposed to credit risk, which is the risk that the counterparty will be unable to pay amounts to the Funds or deliver securities in full to the Fund when due. All transactions in listed securities are settled (paid for) using approved brokers on delivery. The risk of default is considered minimal, as delivery of securities sold by a Fund is only made when the broker has received payment. Payment from the Fund is made on a purchase when the securities have been received by the broker. A trade will fail if either party fails to meet its obligations. A short seller can be exposed to credit risk for the amount of collateral pledged to the broker if the terms of the agreement with the broker are unable to be met. The Funds seek to control this risk through counterparty credit evaluations, approvals and exposure monitoring procedures undertaken by BlackRock Canada and its affiliates. Credit risk arising on debt instruments is mitigated by investing primarily in instruments that have been rated as investment grade or above by independent third party rating agencies. Similarly, credit risk arising on forward currency contracts is mitigated by investing primarily in instruments issued by counterparties who have been rated as having a superior ability to repay short-term debt by third party rating agencies. Risks may arise as a result of the failure of the counterparty to a swap contract to comply with the terms of the swap contract. The loss incurred by the failure of counterparty is generally limited to the aggregate of the unrealized appreciation on the swap contracts in an unrealized appreciation position as well as any collateral posted with the counterparty. Therefore, the Fund considers the creditworthiness of each counterparty to a swap contract in evaluating potential credit risk. 352

353 Notes to Financial Statements December 31, 2012 In a repurchase agreement, the Fund delivers a financial instrument to a counterparty with an agreement to purchase the same financial instrument back from the purchaser at an agreed upon price and date. In connection with the agreement, the Fund pledges collateral to the counterparty made up of cash, securities issued by the U.S. government or its agencies or sponsored entities, commercial paper, corporate debt obligations, or other financial instruments. Collateral is marked-to-market daily and additional collateral is pledged as required by the counterparty. In connection with such agreements, if the counterparty defaults or enters an insolvency proceeding, return of the collateral may be delayed or limited. The tables below summarize information on credit ratings of the Funds holdings for those Funds that had direct investments in debt securities and derivatives as at December 31, 2012 and December 31, 2011, respectively: As at December 31, 2012 Fund A/A 3 AA/Aa 3 AAA/Aaa 3 BBB/Bbb 3 P-1/P-2 (Forwards) 4 Total (%) 1 (%) 1 (%) 1 (%) 1 (%) 2 (%) BlackRock Canada Universe Bond Index Fund BlackRock Canada ex-bbb Universe Bond Index Fund BlackRock Canada Real Return Bond Index Fund BlackRock Canada Long Bond Index Fund BlackRock Canada Long Government Bond Index Fund BlackRock Canada All Government Bond Index Fund BlackRock Canada Credit-Screened Bond Index Fund BlackRock Canada CoreActive Universe Bond Fund BlackRock Canada CorePlus Long Bond Fund BlackRock Canada CorePlus Universe Bond Fund Fund A/A 3 AA/Aa 3 AAA/Aaa 3 BBB/Bbb 3 P-1/P-2 (Forwards) 4 Total (%) 1 (%) 1 (%) 1 (%) 1 (%) 2 (%) BlackRock CDN US Equity Index Hedged Non-Taxable Fund BlackRock CDN US Alpha Tilts Hedged Non-Taxable Fund BlackRock Canada CorePlus Long Bond Fund BlackRock Canada CorePlus Universe Bond Fund BlackRock CDN Global Market Selection Fund ** - BlackRock CDN MSCI EAFE Index Hedged Fund As at December 31, 2012 Fund Aa1 4 (%) Aa2 4 (%) Aa3 4 (%) Aaa 4 (%) P-1 4 (%) NR (%) Total (%) BlackRock Canada Levered Long Bond Index Fund * BlackRock Canada Levered Real Return Bond Index Fund * BlackRock CDN Short Term Index Fund As at December 31, 2011 Fund A/A 3 AA/Aa 3 AAA/Aaa 3 BBB/Bbb 3 P-1 (Forwards) 4 Total (%) 1 (%) 1 (%) 1 (%) 1 (%) 2 (%) BlackRock Canada Universe Bond Index Fund BlackRock Canada ex-bbb Universe Bond Index Fund BlackRock Canada Real Return Bond Index Fund BlackRock Canada Long Bond Index Fund BlackRock Canada Long Government Bond Index Fund BlackRock Canada All Government Bond Index Fund BlackRock Canada Credit-Screened Bond Index Fund BlackRock Canada CoreActive Universe Bond Fund BlackRock Canada CorePlus Long Bond Fund BlackRock Canada CorePlus Universe Bond Fund

354 Notes to Financial Statements December 31, 2012 Fund A/A 3 AA/Aa 3 AAA/Aaa 3 BBB/Bbb 3 P-1 (Forwards) 4 Total (%) 1 (%) 1 (%) 1 (%) 1 (%) 2 (%) BlackRock CDN US Equity Index Hedged Non-Taxable Fund BlackRock CDN US Alpha Tilts Hedged Non-Taxable Fund BlackRock CDN Russell 3000 Index Hedged Non-Taxable Fund BlackRock Canada CorePlus Long Bond Fund BlackRock Canada CorePlus Universe Bond Fund BlackRock CDN Global Market Selection Fund BlackRock CDN MSCI EAFE Index Hedged Fund Fund Aa1 4 (%) Aa2 4 (%) Aa3 4 (%) Aaa 4 (%) P-1 4 (%) Total (%) BlackRock Canada Levered Long Bond Index Fund * BlackRock Canada Levered Real Return Bond Index Fund * BlackRock CDN Short Term Index Fund Percentage of Fixed Income 2 Percentage of Forward Currency Contracts 3 Source: PC-Bond, a business unit of TSX Inc. 4 Source: Moody s Investors Service - Short Term * Percentage of Total Return Swap Contract ** The P-2 counterparty rating is only applicable to this fund The Funds invested in other funds may be indirectly exposed to credit risk in the event that the underlying funds invest in debt instruments and derivatives. Each Fund may enter into securities lending transactions with a counterparty whereby the Fund temporarily exchanges securities for collateral with a commitment by the counterparty to deliver the same securities on a future date. Credit risk associated with these transactions is considered minimal as the credit risk arising on debt instruments is mitigated by investing primarily in instruments that have been rated as investment grade or above by independent third party rating agencies. Additionally, the of cash or securities held as collateral must be at least 102% of the fair market of securities loaned. Similarly, credit risk arising on forward currency contracts and swap contracts are mitigated by investing primarily in instruments issued by counterparties who have been rated as having a superior ability to repay short-term debt by third party rating agencies. g. Liquidity risk The Funds exposure to liquidity risk is concentrated mainly in the cash redemptions of units. Therefore, a Fund generally invests the majority of its assets in investments that are traded in active markets and can be readily sold. In addition, the Funds generally retain sufficient cash and cash equivalents to maintain anticipated ongoing liquidity. The Funds may, from time to time, enter into over-the-counter derivative contracts that are not traded in an organized market and may be illiquid. The Funds also have the ability to borrow for the purpose of redeeming units. No such borrowing occurred during the year. Maturity dates of derivative contracts and repurchase agreements are disclosed in each relevant note. Short sales are due on demand and trade payables are due within three months. 13. Brokers commissions Commissions paid to brokers for portfolio transactions for periods ended December 31, 2012 and December 31, 2011 are summarized below: Fund BlackRock Canadian Equity Index Fund $414,924 $410,973 BlackRock Canadian Equity Ex-Trusts Index Fund 13,334 37,886 BlackRock CDN MSCI Canada IMI Index Fund 48, ,906 BlackRock CDN US Equity Index Non-Taxable Fund 92,950 85,433 BlackRock CDN US Equity Index Plus Non-Taxable Fund 29,613 47,249 BlackRock CDN US Equity Index Fund 95,359 31,486 BlackRock CDN US Alpha Tilts Non-Taxable Fund 479, ,681 BlackRock CDN Russell 3000 Index Non-Taxable Fund 16,016 53,961 BlackRock Active Canadian Equity Fund 2,887,399 2,445,406 BlackRock Active Canadian Equity Ex-Income Trusts Fund 1,465,191 2,219,

355 Notes to Financial Statements December 31, 2012 Fund BlackRock Active Canadian Equity DC Fund $1,054,977 $808,844 BlackRock Active Canadian Equity Small Cap Fund 404, ,690 BlackRock Canada Alpha Advantage Fund 819,734 75,214 BlackRock Canada CoreActive Universe Bond Fund 13,359 14,061 BlackRock Canada CorePlus Long Bond Fund - 36,085 BlackRock Canada CorePlus Universe Bond Fund 8,789 - BlackRock Balanced Moderate Index DC Fund 5,946 7,379 BlackRock Balanced Conservative Index DC Fund 2,658 4,005 BlackRock Balanced Aggressive Index DC Fund 1,271 1,757 BlackRock CDN LifePath Retirement Index Fund I 35,460 12,217 BlackRock CDN LifePath Index 2010 Retirement Fund 24,721 4,582 BlackRock CDN LifePath 2015 Index Fund 94,659 28,015 BlackRock CDN LifePath 2020 Index Fund 190,584 37,290 BlackRock CDN LifePath 2025 Index Fund 143,104 36,532 BlackRock CDN LifePath 2030 Index Fund 129,641 27,955 BlackRock CDN LifePath 2035 Index Fund 74,206 18,656 BlackRock CDN LifePath 2040 Index Fund 56,455 13,453 BlackRock CDN LifePath 2045 Index Fund 30,310 8,160 BlackRock CDN LifePath 2050 Index Fund BlackRock Balanced Active Fund BlackRock CDN MSCI EAFE Equity Index Fund 263, ,239 BlackRock CDN MSCI ACWI ex-canada Index Fund 10,134 3,969 BlackRock CDN MSCI Emerging Markets Index Fund 57, ,892 BlackRock CDN MSCI EAFE Index Plus Fund 89, ,698 BlackRock CDN Global Equity Focus Fund 180,497 66,066 BlackRock CDN Global Developed Real Estate Index Fund 171,533 - BlackRock CDN Global Infrastructure Equity Index Fund 80,022 - BlackRock CDN Emerging Markets Fundamental Index Fund 112, , Independent review committee On behalf of the Funds, BlackRock Canada has established an independent review committee ( IRC ) pursuant to the requirements of the regulatory relief obtained by BlackRock Canada. Under the terms of the regulatory relief, BlackRock Canada is required to present conflicts of interest relating to trades in securities of related issuers and inter-fund trading to the IRC for its approval. The IRC is governed by certain provisions of National Instrument Independent Review Committee for Investment Funds ( NI ) in determining whether to provide its approval. In accordance with the applicable requirements of NI , the IRC has considered and provided its approval and has provided standing instructions which BlackRock Canada can rely upon in respect of these two conflicts of interest matters. Fees and expenses incurred with respect to the IRC are permitted to be charged to the Funds. 15. Comparative figures Certain comparative figures have been reclassified to conform to the current year s financial statement presentation. 16. Future accounting change transition to International Financial Reporting Standards ( IFRS ) On December 12, 2011, the Canadian Accounting Standards Board ( AcSB ) extended the deferral of the mandatory International Financial Reporting Standards ( IFRS ) changeover date for investment companies to fiscal year beginning on or after January 1, Management has been monitoring developments in the IFRS conversion program and has been assessing the likely impacts on implementation decisions, internal controls, information systems and training. In May 2011, the IASB issued IFRS 13 Value Measurement, which defines fair, sets out a single IFRS framework for measuring fair and requires disclosure about fair measurements. It only applies when other IFRSs require or permit fair measurement. If an asset or liability measured at fair has a bid price and an ask price, it requires valuation to be based on a price within the bid-ask spread that is most representative of fair. It allows the use of mid-market pricing or other pricing conventions that are used by market participants as a practical expedient for fair measurements within a bid-ask spread. This may result in elimination of the differences between the net assets per unit and NAV per unit at the financial statement reporting dates. 355

356 Notes to Financial Statements December 31, 2012 Based on management s current assessment of the differences between Canadian GAAP and IFRS, other than the impact due to IFRS 13 noted above, BlackRock Canada has determined that there will likely be no material impact to the net asset per unit from the changeover to IFRS. This current assessment may change if new standards are issued or if interpretations of existing standards are revised. The impact of IFRS on accounting policies and implementation decisions will mainly be in the additional information disclosures in the notes to financial statements and modified presentation and/or additional schedules which may have to be included. As a result of the IFRS changeover, the Funds will be required to present a statement of cash flows. 356

357 March 22, 2013 Independent Auditor s Report To the Unitholders and Trustee of BlackRock Canadian Equity Index Fund BlackRock Canadian Equity Ex-Trusts Index Fund BlackRock CDN MSCI Canada IMI Index Fund BlackRock CDN US Equity Index Non-Taxable Fund BlackRock CDN US Equity Index Plus Non-Taxable Fund BlackRock CDN US Equity Index Hedged Non-Taxable Fund BlackRock CDN US Equity Index Fund BlackRock CDN US Alpha Tilts Non-Taxable Fund BlackRock CDN US Alpha Tilts Hedged Non-Taxable Fund BlackRock CDN Russell 3000 Index Non-Taxable Fund BlackRock Active Canadian Equity Fund BlackRock Active Canadian Equity Ex-Income Trusts Fund BlackRock Active Canadian Equity DC Fund BlackRock Active Canadian Equity Small Cap Fund BlackRock Canada Alpha Advantage Fund BlackRock Canada Universe Bond Index Fund BlackRock Canada ex-bbb Universe Bond Index Fund BlackRock Canada Real Return Bond Index Fund BlackRock Canada Long Bond Index Fund BlackRock Canada Long Government Bond Index Fund BlackRock Canada All Government Bond Index Fund BlackRock Canada Credit-Screened Bond Index Fund BlackRock Canada CoreActive Universe Bond Fund BlackRock Canada CorePlus Long Bond Fund BlackRock Canada CorePlus Universe Bond Fund BlackRock Canada Levered Long Bond Index Fund BlackRock Canada Levered Real Return Bond Index Fund BlackRock Balanced Moderate Index DC Fund BlackRock Balanced Conservative Index DC Fund BlackRock Balanced Aggressive Index DC Fund BlackRock CDN LifePath Retirement Index Fund I BlackRock CDN LifePath Index 2010 Retirement Fund BlackRock CDN LifePath 2015 Index Fund BlackRock CDN LifePath 2020 Index Fund BlackRock CDN LifePath 2025 Index Fund PricewaterhouseCoopers LLP PwC Tower, 18 York Street, Suite 2600, Toronto, Ontario, Canada M5J 0B2 T: , F: , PwC refers to PricewaterhouseCoopers LLP, an Ontario limited liability partnership. 357

358 BlackRock CDN LifePath 2030 Index Fund BlackRock CDN LifePath 2035 Index Fund BlackRock CDN LifePath 2040 Index Fund BlackRock CDN LifePath 2045 Index Fund BlackRock CDN LifePath 2050 Index Fund BlackRock Balanced Active Fund BlackRock CDN Global Market Selection Fund BlackRock CDN Short Term Index Fund BlackRock CDN MSCI EAFE Equity Index Fund BlackRock CDN MSCI EAFE Index Hedged Fund BlackRock CDN MSCI ACWI ex-canada Index Fund BlackRock CDN MSCI Emerging Markets Index Fund BlackRock CDN MSCI EAFE Equity Index Plus Fund BlackRock CDN Global Equity Focus Fund BlackRock CDN Global Developed Real Estate Index Fund Blackrock CDN Global Infrastructure Equity Index Fund BlackRock CDN Emerging Markets Fundamental Index Fund (formerly Claymore Emerging Markets Index Fund) (collectively the Funds) We have audited the accompanying financial statements of each of the Funds, which comprise the statement of investment portfolio as at December 31, 2012, the statements of net assets and the statements of operations, cash flows, where applicable, and changes in net assets as at and for the periods as indicated in note 1, except for the BlackRock CDN Emerging Markets Fundamental Index Fund which is as at and for the year ended December 31, 2012, and the related notes, which comprise a summary of significant accounting policies and other explanatory information. Management s responsibility for the financial statements Management is responsible for the preparation and fair presentation of the financial statements of each of the Funds in accordance with Canadian generally accepted accounting principles, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor s responsibility Our responsibility is to express an opinion on the financial statements of each of the Funds based on our audits. We conducted our audits in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. 358

359 We believe that the audit evidence we have obtained in each of our audits is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements of each of the Funds present fairly, in all material respects, the financial position of each of the Funds and the results of each of their operations and the changes in each of their net assets as at and for the periods indicated in note 1 except for the BlackRock CDN Emerging Markets Fundamental Index Fund which is as at and for the year ended December 31, 2012 in accordance with Canadian generally accepted accounting principles. Other Matters The financial statements of the BlackRock CDN Emerging Markets Fundamental Index Fund for the year ended December 31, 2011, were audited by another auditor who expressed an unmodified opinion on those statements on March 29, Chartered Accountants, Licensed Public Accountants 359