ANNUAL REPORT AND AUDITED ACCOUNTS TITLE (40 50 CHARACTERS)

Transcription

1 ANNUAL REPORT AND AUDITED ACCOUNTS TITLE (40 50 CHARACTERS) BLACKROCK STRATEGIC FUNDS (BSF) SUBTITLE (40-50 CHARACTERS) R.C.S. Luxembourg: B MAY 2014

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3 Contents BSF Chairman s Letter to Shareholders 2 BSF Investment Adviser s Report 4 BSF Directors Report 8 Board of Directors 12 Management and Administration 12 Statement of Net Assets 13 Three Year Summary of Net Asset s 17 Statement of Operations and Changes in Net Assets 21 Statement of Changes in Shares Outstanding 25 Portfolio of Investments BlackRock Americas Diversified Equity Absolute Return Fund 28 BlackRock Asia Extension Fund 53 BlackRock Emerging Markets Absolute Return Fund 58 BlackRock Emerging Markets Allocation Fund 61 BlackRock Emerging Markets Flexi Dynamic Bond Fund 73 BlackRock Euro Dynamic Diversified Growth Fund 76 BlackRock European Absolute Return Fund 80 BlackRock European Constrained Credit Strategies Fund 83 BlackRock European Credit Strategies Fund 95 BlackRock European Diversified Equity Absolute Return Fund 111 BlackRock European Opportunities Extension Fund 124 BlackRock Fixed Income Strategies Fund 127 BlackRock Fund of ishares Conservative 135 BlackRock Fund of ishares Dynamic 136 BlackRock Fund of ishares Growth 137 BlackRock Fund of ishares Moderate 138 BlackRock Global Absolute Return Bond Fund 139 BlackRock Latin American Opportunities Fund 179 Notes to the Financial Statements 181 Report of the Réviseur d Entreprises Agréé 192 General Information 193 Appendix I Global Exposure and Leverage (Unaudited) 195 Subscriptions can only be made on the basis of the current Prospectus, together with the most recent audited annual report and accounts and unaudited interim report and accounts. Copies are available from the Investor Services Centre, the Transfer Agent, the Manager or any of the Distributors. Annual Report and Audited Accounts 1

4 BSF Chairman s Letter to Shareholders Dear Shareholder I am writing to update you on the activities of BlackRock Strategic Funds (the Company ), a Luxembourg UCITS Fund range providing clients with access to BlackRock investment products which seek to take full advantage of the expanded investment powers incorporated in the UCITS directive. This report covers the Company s financial year from 1 June 2013 to 31 May For many developed market assets, 2013 proved to be a strong year, with global equities continuing to march to new highs. The rally seemed to be supported by low yields, a steady flow of cash, mergers and acquisitions activity, share buybacks and improving economic indicators. Market performance for much of the second half of 2013 was driven in large part by growth-oriented assets that in turn benefited from an acceleration of economic growth, which was better than expected. Central banks also remained accommodative, and some of the key risks that had worried many investors faded, most notably in the Euro area. In this environment, many risk assets (such as equities and corporate bonds) performed strongly, with the exception of emergingmarket equities and commodities that continued to see weaker economic growth in China and heightened political risks. The US Federal Reserve (the Fed ) finally decided to begin reducing (or tapering ) its spending in support of its economy at its December 2013 policy meeting when it confirmed it would reduce its programme of purchasing fixed income assets by 10 billion. It then took the decision in January 2014 to trim by a further 10 billion. While the Fed and the Bank of England ( BoE ) are expected to reduce their stimulus programmes as their economies improve, monetary policies of the European Central Bank ( ECB ) and the Bank of Japan continue to be supportive. Following a period of strong performance, many asset classes began to look fairly valued as investors entered 2014, though we still do not see much sign of irrational exuberance in market pricing. Expectations for economic growth in financial markets have also risen. In addition, some important differences have started to emerge in monetary policies of major central banks, particularly in the Anglo-Saxon economies, and the pace of quantitative easing in the US is slowing. The combination of improving economic indicators and the decision of the Fed to reduce its quantitative easing programme weighed on government bond prices for much of the year. Monetary policy seemed to continue to be the main decisive factor in the performance of bonds, outweighing such beneficial factors for bond performance as weak economic growth and low inflation. The performance of the Funds is covered in more detail in the separate Investment Adviser's Report, which also sets out some views regarding the investment outlook. Overall, the assets under management in the Company range have almost doubled from 3,937m to 7,598m, which reflected a strong risk appetite among investors over the twelve month period. Some of the fastest growing Funds within the range were the BlackRock European Opportunities Extension Fund, which increased in size from 11.1m to 512.2m, and the BlackRock Fixed Income Strategies Fund, which increased from 113.0m to 625.5m over the year. The BlackRock Emerging Markets Flexi Dynamic Bond Fund, which was launched during the year, has done well, attracting 148.0m. Other notable strategies in terms of asset growth included the BlackRock Asia Extension Fund, which increased from 46.4m to 202.7m and the BlackRock European Credit Strategies Fund, which grew from 766.7m to 1.5 billion. BlackRock is fully committed to remaining at the forefront of the European mutual funds industry by bringing innovative investment products to our clients and is actively working on adding other funds to the range as our product development process brings forward appropriate investment opportunities for clients. In June 2013 we launched the BlackRock Emerging Markets Flexi Dynamic Bond Fund, which seeks a combination of capital growth and income by investing predominantly in emerging market debt. In the middle of November 2013 we also launched the BlackRock Emerging Markets Allocation Fund, which seeks to achieve capital growth and income through investment in a mixture of emerging market equities and bonds. 2 BlackRock Strategic Funds (BSF)

5 BSF Chairman s Letter to Shareholders Following a review of our existing fund range, the Board of Directors of the Company took the decision to close the BlackRock European Opportunities Absolute Return Fund on 17 July 2013, following some large redemptions that reduced the size of its portfolio from about 8.3m to less than 1m. Similar reasons also led to the closure of the BlackRock Mining Opportunities Fund on 18 March 2014, which became uneconomic to manage after it reduced in size from about 9m to less than 1m. Should you have any questions on any of this Letter, please contact us via our website: Subsequent Events In a letter to shareholders dated 27 June 2014, the Board of Directors of the Company advised shareholders of its decision to liquidate the assets held in the underlying investment portfolio for each of the following Funds, with the intention of distributing redemption proceeds to shareholders on 1 September 2014: BlackRock Fund of ishares Conservative BlackRock Fund of ishares Dynamic BlackRock Fund of ishares Growth BlackRock Fund of ishares Moderate In a subsequent letter to shareholders dated 21 July 2014, in order to facilitate an orderly exit from the Funds for all shareholders, the Board of Directors of the Company decided to postpone the effective date of the closure until 31 December 2014 (the New Effective Date ). The Funds were reopened to subscriptions from 8 July The Board of Directors of the Company will write to shareholders closer to the New Effective Date but shareholders may redeem their investment at any time before this. Yours faithfully, Nicholas C.D. Hall Chairman June 2014 Annual Report and Audited Accounts 3

6 BSF Investment Adviser s Report Performance Overview 1 June May 2014 Disclosed in the table below are the performance returns for the primary non-distributing share class for each Fund, which has been selected as a representative share class. Calculation methodology is based on industry standards. Past performance is not a guide to future performance and should not be the sole factor of consideration when selecting a product. All financial investments involve an element of risk. Therefore, the value of your investment and the income from it will vary and your initial investment amount cannot be guaranteed. The Fund invests a large portion of assets which are denominated in other currencies; hence changes in the relevant exchange rate will affect the value of the investment. The performance figures do not consider charges and fees that may be levied at the time of subscription or redemption of shares. Levels and bases of taxation may change from time to time. Subscriptions may be made only on the basis of the current Prospectus, of which the most recent annual report and audited accounts and interim report and unaudited accounts form an integral part, and Key Investor Information Document (the KIID ). Copies are available from Investor Services, the Transfer Agent, the Manager or any of the Representatives or Distributors. BlackRock Strategic Funds is only available for investment by non-us citizens who are not residents of the US. It is not offered for sale or sold in the US, its territories or possessions. Financial Year Performance to 31 May 2014 Calendar Year Performance 1 year Launch Date BlackRock Americas Diversified Equity Absolute Return Fund 'A' Non Dist () 3.72% (0.98)% 10.27% 17 February 2012 LIBOR 3 Month Index () 0.26% 0.29% 0.41% BlackRock Asia Extension Fund 'A' Non Dist () 6.38% 6.71% 11.00% 10 February 2012 MSCI All Country Asia ex Japan () 7.31% 3.07% 7.98% BlackRock Emerging Markets Absolute Return Fund 'D' Non Dist () 4.24% 4.84% 1.81% 15 November 2012 LIBOR 3 Month Index () 0.26% 0.29% 0.04% BlackRock Emerging Markets Allocation Fund 'A' Non Dist () 3.20% (0.94)% 15 November % MSCI Emerging Markets Index / 40% JPMorgan Emerging Markets 5.47% (0.02)% Bond Index Plus () BlackRock Emerging Markets Flexi Dynamic Bond Fund 'A' Non Dist () 0.69% (0.34)% 12 June % JPMorgan EMBI Global Diversified / 50% JPMorgan Government Bond Index - Emerging Markets Global Diversified Index () 4.50% (1.99)% BlackRock Euro Dynamic Diversified Growth Fund 'A' Non Dist () 4.94% 6.40% 5.83% (2.19)% 28 January 2011 Euro Overnight Index Average () 0.15% 0.09% 0.23% 0.82% BlackRock European Absolute Return Fund 'A' Non Dist () 2.30% 3.66% 4.98% 6.11% 27 February Month Euro LIBOR Rate () 0.21% 0.15% 0.51% 1.36% BlackRock European Constrained Credit Strategies Fund 'I' Non Dist () 5.45% 4.75% 6.14% 0.88% 22 September Month Euro LIBOR Rate () 0.21% 0.15% 0.51% 0.40% BlackRock European Credit Strategies Fund 'H' Non Dist () 6.61% 5.22% 6.96% 2.04% 16 February Month Euro LIBOR Rate () 0.21% 0.15% 0.51% 1.23% The information stated in this report is historical and not necessarily indicative of future performance. 4 BlackRock Strategic Funds (BSF)

7 BSF Investment Adviser s Report Performance Overview 1 June May 2014 continued Financial Year Performance to 31 May 2014 Calendar Year Performance 1 year Launch Date BlackRock European Diversified Equity Absolute Return Fund 'A' Non Dist () 6.77% 18.00% (0.53)% (4.55)% 6 August Month Euro LIBOR Rate () 0.21% 0.15% 0.51% 1.36% BlackRock European Opportunities Absolute Return Fund 'A' Non Dist ()* (0.25)% 3.69% 2.00% 3.79% 6 August Month Euro LIBOR Rate () 0.02% 0.07% 0.51% 1.36% BlackRock European Opportunities Extension Fund 'A' Non Dist () 38.92% 44.94% 22.92% (8.79)% 31 August 2007 S&P Europe BMI Index (Developed Markets only) () b % 22.32% 19.09% (8.59)% MSCI Europe (net) () 16.98% 19.82% 17.29% (8.08)% BlackRock Fixed Income Strategies Fund 'A' Non Dist () 5.27% 3.80% 7.64% (1.30)% 30 September 2009 Euro Overnight Index Average () 0.15% 0.09% 0.23% 0.87% BlackRock Fund of ishares - Conservative 'K' Non Dist () 3.60% 0.27% 9.05% (0.76)% 17 September 2010 BlackRock Fund of ishares Conservative Customised Benchmark () 4.85% 1.78% 10.43% 0.89% BlackRock Fund of ishares - Dynamic 'K' Non Dist () 10.17% 12.37% 10.13% (9.92)% 17 September 2010 BlackRock Fund of ishares Dynamic Customised Benchmark () 11.25% 12.96% 12.29% (7.56)% BlackRock Fund of ishares - Growth 'K' Non Dist () 8.11% 8.18% 10.29% (6.75)% 17 September 2010 BlackRock Fund of ishares Growth Customised Benchmark () 9.07% 8.89% 12.18% (4.72)% BlackRock Fund of ishares - Moderate 'K' Non Dist () 5.99% 3.82% 10.19% (2.97)% 17 September 2010 BlackRock Fund of ishares Moderate Customised Benchmark () 6.72% 4.66% 11.84% (1.33)% BlackRock Global Absolute Return Bond Fund 'A' Non Dist () 0.88% 1.51% 2.20% 25 May month Euribor Index () 0.24% 0.20% 0.33% BlackRock Latin American Opportunities Fund 'A' Non Dist () (5.63)% (13.15)% 20.03% (28.12)% 14 November 2007 MSCI Emerging Market Latin America Index () (4.75)% (13.36)% 8.66% (19.35)% MSCI Emerging Market Latin America 10/40 (net) () (4.75)% (13.36)% 9.58% (18.57)% BlackRock Mining Opportunities Fund 'D' Non Dist RF ()** 1.01% (28.09)% 7.21% 31 May 2012 HSBC Global Mining () (0.16)% (22.63)% 16.94% * The Fund was liquidated on 17 July ** The Fund was liquidated on 18 March b1 Previously known as Citigroup BMI Europe Index. Fund performance returns are based on dealing prices with net dividends (after deduction of withholding tax) reinvested and are shown net of fees. Index Sources: Indices Financial Times, MSCI, Citigroup, DataStream, MorningStar; Funds BlackRock Investment Management (UK) Limited. The information stated in this report is historical and not necessarily indicative of future performance. Annual Report and Audited Accounts 5

8 BSF Investment Adviser s Report Performance Overview 1 June May 2014 continued Market Review Most global equity markets delivered good positive gains over the twelve month period, with the FTSE All-World Index up by 17.7% 1. The gains were pared back to some extent by concerns about the potential timing and extent of a reduction in monetary easing by the Fed, but positive economic news proved the bigger influence over the year. The main exceptions to this were Latin America (-5.6%) and Eastern Europe (-2.1%), which registered declines amid concerns over slow economic growth and heightened political risks. Brazil was a key negative contributor to Latin America s underperformance as it fell by 6.7%, while Eastern European companies became affected by geopolitical concerns over the tensions between Russia and Ukraine, with the Russian market posting a loss of 3.0% over the year. US equities (+20.8%), which represent over a half of the global equity market and Europe outperformed the broader global market. Italy (+36.9%), France (+26.1%) and Germany (+25.4%) were strong, while Greece and Ireland continued to recover strongly following a period of underperformance with gains of 44.7% and 41.2% respectively. UK equities also finished the year well, with a total return of 19.0%. Asia Pacific ex Japan equities underperformed the broader global market but still produced a respectable gain of 9.0%. Their performance was affected by concerns about the health of the Chinese economy and the impact of the Fed s reduced monetary stimulus measures. India gained 17.9%, as the landslide victory of Narenda Modi and his party brought high hopes that the new administration s focus on less government and more governance will help unlock India s economic potential. Japanese equities performed relatively well, gaining 6.7%, as they drew strength from supportive monetary policies. From the sector perspective, technology, health care and industrials were the strongest areas, while basic materials underperformed. In fixed income, the combination of improving economic news in developed economies and the Fed s decision to taper weighed on government bond prices over the year, as they underperformed corporate bonds. Over the first few months of 2014, government bonds recovered some of the ground they lost in They benefited from the Fed and the BoE reassuring investors that they will continue to support their respective economies until there is notable improvement in employment figures, with low inflation also remaining a key concern. Fund Performance Equity Fund Performance All equity-based funds within the BlackRock Strategic Funds range produced positive returns over the year with the exception of our Latin American equity strategy. For the year under review, Latin American small and mid-caps, the focus of our strategy, underperformed their larger peers. In particular, large-cap names in the Brazilian banking and oil and gas sectors, some of the key components of the Fund s all-cap benchmark, performed well on the back of strong third quarter 2013 earnings for the banks and optimism around a price adjustment mechanism for Petrobras. Later in the year, these sectors were buoyed by the growing potential for an opposition win in the forthcoming presidential elections in Brazil. The BlackRock Latin American Opportunities Fund declined by 5.63%, underperforming the MSCI Emerging Market Latin America Index and the MSCI Emerging Market Latin America 10/40 Index, which were down by 4.75% Within our absolute return strategies, the BlackRock European Diversified Equity Absolute Return Fund rose by 6.77% and the BlackRock European Absolute Return Fund rose by 2.30%. Both Funds generated good positive annualised returns since their inception, 17.39% and 23.97% since 6 August 2010 and 27 February 2009 respectively, thus continuing to match their long-term objectives of providing positive performance within a low-volatility and risk-aware strategy. Both of these Funds are based on model-driven investment insights. The BlackRock Americas Diversified Equity Absolute Return Fund gained 3.72%, outperforming the LIBOR 3 Month Index (), which was up by 0.26%. One of our more recent additions to the range, the BlackRock Emerging Markets Absolute Return Fund, produced a positive absolute return of 4.24%, outperforming the LIBOR 3 Month Index (), which was up by 0.26%. The BlackRock European Opportunities Extension Fund was the best-performing Fund within the range over the year, returning 38.92% and outperforming its benchmark, the S&P Europe BMI Index (Developed Markets Only), which was up by 19.02%. The BlackRock Asia Extension Fund, meanwhile, returned 6.38% but underperformed its benchmark, the MSCI All Country Asia ex Japan Index, which was up by 7.31%. The BlackRock Emerging Markets Flexi Dynamic Bond Fund rose by 0.69% from its launch on 12 June 2013, underperforming its composite benchmark, which was up by 4.50%. The recently launched BlackRock Emerging 1 All returns quoted are total returns, given in US dollar terms. Source: FTSE All World indices, over 12 months to 31 May The information stated in this report is historical and not necessarily indicative of future performance. 6 BlackRock Strategic Funds (BSF)

9 BSF Investment Adviser s Report Performance Overview 1 June May 2014 continued Markets Allocation Fund returned 3.20% since its launch on 15 November 2013, underperforming the 60% MSCI Emerging Markets Index / 40% JPMorgan Emerging Markets Bond Index Plus, which was up by 5.47% over the same period. Bond Fund Performance The best-performing bond Funds within the range were the BlackRock European Credit Strategies Fund, which returned 6.61% compared to 0.21% for its benchmark, the 3 Month Euro Libor Rate, and the BlackRock European Constrained Credit Strategies Fund, which returned 5.45%, compared to 0.21% for the 3 Month Euro Libor Rate. They were followed closely by the BlackRock Fixed Income Strategies Fund, which was up by 5.27%, which also outperformed its benchmark, the Euro Overnight Index Average, which rose by 0.15%. The Fund offers the option of dynamic asset allocation across the whole investment universe and an ability to go net short duration. It gives investors an opportunity to take advantage of relative value opportunities without being locked into a benchmark-constrained product. The BlackRock Global Absolute Return Bond Fund gained 0.88%, ahead of its benchmark, the 3 Month Euribor Index, which was up by 0.24%. Mixed Fund Performance The BlackRock Euro Dynamic Diversified Growth Fund produced an absolute return of 4.94% over the year, outperforming its benchmark, the Euro Overnight Index Average, which was up by 0.15%. Fund of Funds Performance The BlackRock Funds of ishares range, which was launched in September 2010, offers investors four diversified, multiasset class funds for different risk appetites: Conservative, Moderate, Growth and Dynamic. The Funds deliver their objectives via a combination of the asset-allocation expertise of BlackRock and subsequent investment in BlackRock s award-winning ishares Exchange Traded Funds ( ETF ) range. All four Funds achieved levels of risk appropriate to their respective profiles. The best-performing Fund in this range was the BlackRock Fund of ishares Dynamic, which delivered an absolute return of 10.17%, which was followed by the BlackRock Fund of ishares Growth +8.11%, the BlackRock Fund of ishares Moderate +5.99% and the BlackRock Fund of ishares Conservative +3.60%. Outlook An important question for investors is whether we are simply in a more mature phase of an economic cycle, so that future returns will be weaker than we have seen but ultimately worth playing for? Or are we at a later stage in the cycle warranting a fundamentally more negative stance for a period? We remain in the first camp. Firstly, we expect some firming of economic growth. One of the challenges in the markets so far this year is that this has been a consensus view, and in the first few months of 2014 global economic growth has actually lost some momentum. This partly appeared to reflect some random effects such as poor weather in the US, and recent signs, albeit tentative, are that growth momentum is beginning to pick up again. It s important to stress that this improvement is focused on the US and Europe it is less evident in Japan, partly as a result of the VAT increase, or in emerging markets. Nevertheless, there is some evidence emerging that is consistent with a realistically positive view on global growth. It s also interesting to note that commodity prices have strengthened materially in recent weeks. This increase has been broadly based, including cyclically sensitive areas such as industrial metals. And while several drivers have caused this increase, it would be unusual to see such a broad-based rise in commodity prices in the absence of economic activity. The second element in the positive market view is that we expect this firming of economic growth to translate into stronger corporate earnings growth. One major concern is that high margins in the US mean that there is now a materially higher risk to corporate earnings. However, there are two counters to this point. The first is that margins can remain elevated for an extended, multi-year period, and US earnings are still coming in ahead of expectations. Secondly, outside the US, earnings are still relatively depressed, so at the global level, profit margins are a long way from peak levels. The third component of a pro-risk view is that the policy background in the developed world remains supportive. Our central case is still that the Fed will not raise interest rates for at least another year, and possibly longer. For the moment, the risk is that monetary policy in the developed economies gets even looser if the Bank of Japan, and possibly the ECB, loosens policy further over the coming months. The final element of the pro-risk view is valuations. As we have said, risk-asset valuations have normalised, but they have not become unrealistic. At some stage in the current cycle, though, it is feasible that they will do so. There are four particular triggers for a more defensive stance to become more appropriate: Increased geopolitical risks A material slowdown in economic growth Earlier-than-expected policy tightening Valuations become unsustainable June 2014 The information stated in this report is historical and not necessarily indicative of future performance. Annual Report and Audited Accounts 7

10 BSF Directors Report Corporate Governance Statement Introduction BlackRock Strategic Funds (the Company ) is a public limited company (société anonyme) established under the laws of the Grand Duchy of Luxembourg as an open ended variable capital investment company (société d investissement à capital variable). The Company has been authorised by the Commission de Surveillance du Secteur Financier (the CSSF ) as an undertaking for collective investment in transferable securities ( UCITS ) pursuant to the provisions of Part I of the law of 17 December 2010 relating to undertakings for collective investments, as amended from time to time and is regulated pursuant to such law. The Company is an umbrella structure comprising a number of different Funds, each having a separate portfolio of investments. The Company complies with the principles set out in the Association of the Luxembourg Fund Industry (the ALFI ) Code of Conduct Revision 2013 (the Code ) issued by ALFI in June The Board of Directors of the Company (the Board ) is committed to maintaining the highest standards of corporate governance and is accountable to shareholders for the governance of the Company s affairs. The Board has considered the principles and recommendations of the Code and has put in place a framework for corporate governance which it believes is appropriate for adherence to the principles of the Code given the nature of its structure as an investment company. This statement summarises the corporate governance structure and processes in place for the Company for the year under review from 1 June 2013 to 31 May Board Composition The Board currently consists of six non-executive Directors (including one independent Director). The Board is committed to maintaining an appropriate balance of skills, experience, independence and knowledge amongst its members. The Directors biographies, on pages 10 and 11, collectively demonstrate a breadth of investment knowledge and experience, business and financial skills and legal and regulatory familiarity which enables them to provide effective strategic leadership, oversight and proper governance of the Company. BlackRock considers the current compositions to be a suitable and appropriate balance for the Board. Article 13 of the Company s Articles of Association, in accordance with Luxembourg law, provides that Directors shall be elected by the shareholders at their annual general meeting for a period ending at the next annual general meeting and until their successors are elected. Any Director who resigns his/her position is obliged to confirm to the Board and the CSSF that the resignation is not connected with any issues with or claims against the Company. The Board supports a planned and progressive renewing of the Board. BlackRock is committed to ensuring that Directors put forward for election by the shareholders possess the skills needed to maintain this balance. The Board is committed to carrying out an annual review of its performance and activities. The Directors have a continuing obligation to ensure they have sufficient time to discharge their duties. The details of each Director s (including the Chairman), other appointments and commitments are made available to the Board and BlackRock Investment Management (UK) Limited ( BIM UK ) for inspection. All new appointments or significant commitments require the prior approval of BIM UK. Before a new Director is proposed to the shareholders for appointment he or she will receive a full induction incorporating relevant information regarding the Company and his or her duties and responsibilities as a Director. In addition, a new Director is required to spend some time with representatives of BIM UK so that the new Director will become familiar with the various processes which are considered necessary for the proper performance of his or her duties and responsibilities to the Company. The Company s policy is to encourage Directors to keep up to date with developments relevant to the Company. The Directors have attended and will continue to attend updates and briefings run by BIM UK and affiliated entities in the U.S. and elsewhere. The Directors also receive regular briefings from, amongst others, the auditors, investment strategists, risk specialists, custodian and legal advisors regarding any proposed product developments or changes in laws or regulations that could affect the Company. Board s Responsibilities The Board meets at least quarterly and also on an ad hoc basis as required. The Board is supplied with information in a timely manner and in a form and of a quality appropriate to enable it to discharge its duties. The Board is responsible for the longterm success of the Company and recognises its responsibility to provide leadership, direction and control to the Company within a framework of prudent and effective controls which enables risk to be assessed and managed. The Board reserves to itself decisions relating to the determination of investment policy and objectives, any change in investment strategy and entering into any material contracts. The Board has responsibility for the KIID and also approves the prospectus and any addenda to it, circulars to shareholders, the financial statements and other relevant legal documentation. The Chairman s main responsibility is to lead and manage the Board, encourage critical discussions and promote effective communication within the Board. In addition, he is responsible for promoting best practice corporate governance and effective communication with shareholders. 8 BlackRock Strategic Funds (BSF)

11 BSF Directors Report continued The Directors have access to the advice and services of external counsel and the resources of BIM UK and BlackRock (Luxembourg) S.A. (the Management Company ) should they be needed. Where necessary, in the furtherance of their duties, the Board and individual Directors may seek independent professional advice. The Board has responsibility for ensuring that the Company keeps proper accounting records which disclose, with reasonable accuracy, at any time the financial position of the Company and which enable it to ensure that the financial statements comply with relevant accounting standards. It is the Board s responsibility to present a balanced and understandable assessment of the Company s financial position, which extends to interim financial statements and other reports made available to shareholders and the public. The Board is responsible for taking reasonable steps for safeguarding the assets of the Company and for taking reasonable steps in the prevention and detection of fraud and other irregularities. Insurance The Company maintains appropriate Directors and Officers liability insurance cover. Delegation of Responsibilities As an open ended variable capital investment company most of the Company s day-to-day management and administration is delegated to BlackRock Group companies such as the Management Company which employs dedicated compliance and risk professionals, the Investment Advisers and other third party service providers. The Board has delegated the following areas of responsibility: Management and Administration The Board of the Company has delegated the investment management, distribution and administration of the Company and its Funds to the Management Company. The Management Company has delegated the management of the investment portfolio to the Investment Advisers. The Investment Advisers operate under guidelines determined by the Board and as detailed in the Company s prospectus relating to the Company s Funds. The relevant Investment Advisers have direct responsibility for the decisions relating to the day-to-day running of the Company s Funds and are accountable to both the Management Company and the Company for the investment performance of the Funds. The Board has also delegated the exercise of voting rights attaching to the securities held in the portfolio to the respective Investment Advisers who may in turn delegate to BIM UK. Voting on behalf of shareholders is done so in a manner which is believed to be in the best economic interest of shareholders as long-term investors. The Management Company has delegated its responsibilities for administrative services of the Company and its Funds to State Street Bank Luxembourg S.A. (the Administrator ). The Administrator has the responsibility for the administration of the Company s affairs including the calculation of the net asset value and preparation of the financial statements of the Company, subject to the overall supervision of the Directors and the Management Company. The Administrator is a subsidiary of State Street Bank & Trust Co. The Company has appointed State Street Bank Luxembourg S.A. as Custodian of its assets, which has responsibility for safe-keeping of such assets, pursuant to the regulations. The Custodian is a subsidiary of State Street Bank & Trust Co. The Management Company has delegated transfer agent and share registration services to J.P. Morgan Bank Luxembourg S.A. The Management Company reports to the Board on a quarterly basis and by exception where necessary. Reporting is in place to ensure that the Board can effectively oversee the actions of its delegates. The Management Company is responsible for the risk management and internal controls of the Company and for reviewing their effectiveness, for ensuring that financial information published or used within the business is reliable, and for regularly monitoring compliance with regulations governing the operation of the Company. The Management Company reviews the effectiveness of the internal control and risk management systems on an on-going basis to identify, evaluate and manage the Company s significant risks. As part of that process, there are procedures designed to capture and evaluate any failings or weaknesses. Should a case be categorised by the Board as significant, procedures exist to ensure that necessary action is taken to remedy the failings. The Board is also responsible for establishing and maintaining adequate internal control and risk management systems of the Company in relation to the financial reporting process. Such systems are designed to manage rather than eliminate the risk of failure to achieve the Company s financial reporting objectives. The Company has procedures in place to ensure all relevant accounting records are properly maintained and are readily available, including production of annual and half-yearly financial statements. These procedures include appointing the Administrator to maintain the accounting records of the Company independently of the Investment Manager and the Custodian. The financial statements are prepared in accordance with applicable law and Luxembourg Generally Accepted Accounting Principles ( GAAP ) and are approved by the Board of Directors of the Company. The accounting information given in the annual report is required to be audited and the Auditor s report, including any qualifications, is reproduced in full in the annual report of the Company. The control processes over the risks identified, covering financial, operational, compliance and risk management, is Annual Report and Audited Accounts 9

12 BSF Directors Report continued embedded in the operations of the Management Company, BIM UK and other parties including the Administrator and the Custodian. There is a monitoring and reporting process to review these controls, which has been in place throughout the year under review and up to the date of this report, carried out by BIM UK s internal audit department. BIM UK s internal audit and operational risk units report to the Board through the Management Company on a quarterly basis. The Management Company also receives a report from the Administrator and the Custodian on the internal controls of the administrative and custodial operations of the Company. The Board recognises that these control systems can only be designed to manage rather than eliminate the risk of failure to achieve fund objectives, and to provide reasonable, but not absolute, assurance against material misstatement or loss, and relies on the operating controls established by the service providers. Financial Reporting The Company prepares its financial statements under Luxembourg GAAP and on a going concern basis. Remuneration The Company is an investment company and has no employees or executive Directors. No Director (past or present) has any entitlement to a pension and the Company has not awarded any share options or long-term performance incentives. No element of Directors remuneration is performance-related. Those Directors who are also employees of the BlackRock group are not entitled to receive a Director s fee. All other Directors are paid fees which are submitted for approval by the shareholders at the annual general meeting and are disclosed on page 187. The Board believes that the level of remuneration for those Directors who take a fee properly reflects the time commitment and responsibilities of their roles. The maximum amount of remuneration payable to the Directors is determined by the Board. The Directors have a continuing obligation to ensure they have sufficient time to discharge their duties. The detail of each Director s, including the Chairman s, other appointments and commitments are made available to the Board for inspection and all new appointments or significant commitments require the prior approval of the Investment Manager. Communication with Shareholders The Board is responsible for convening the annual general meeting and all other general meetings of the Company. Shareholders have the opportunity to and are encouraged to attend and vote at general meetings. Notice of general meetings is issued in accordance with the Articles of Association of the Company and notice of the annual general meeting is sent out at least 8 days in advance of the meeting. All substantive matters put before a general meeting are dealt with by way of separate resolution. Proxy voting figures are noted by the chairman of the general meeting. The proceedings of general meetings are governed by the Articles of Association of the Company. The Board has reporting procedures in place such that client communication with BIM UK and/or the Management Company is reported to the Board, including shareholder complaints. In addition to this the Company has appointed BlackRock (Channel Islands) Limited as Principal Distributor who are tasked with actively managing the relationship between the Company and its shareholders. Directors Biographies Nicholas C.D. Hall (Chairman) (British): Mr Hall was, until he retired in May 2009, General Counsel of BlackRock International (previously known as Merrill Lynch Investment Managers International) based in London which was a position he held from his appointment in August He joined the Group in He was educated at St. Catharine s College, Cambridge graduating with a MA (Law) degree in He qualified as a solicitor in England and Wales in 1978 and in Hong Kong in He is a non-executive director of BlackRock Investment Management (UK) Limited, BlackRock Advisors (UK) Limited, BlackRock International Limited, Chairman of the Board of BlackRock Life Limited, BlackRock Global Funds and BlackRock Global Index Funds and serves on the Boards of a number of other BlackRock entities and sponsored funds. Mr Hall is a member of the BlackRock Group Limited Audit and Risk Committees and he Chairs the BlackRock Conflicts Management Committee and the BlackRock Europe, Middle East and Africa ( EMEA ) Nominations Committee. Francine Keiser (Luxembourgish): Mrs Keiser is a former Partner of Linklaters LLP and is now a consultant to the firm. She has been a member of the Luxembourg Bar since Mrs Keiser is an experienced investment funds lawyer with wide expertise in all legal aspects of investment management, in particular in the UCITS area. She serves on the Boards of flagship funds of several major fund promoters, including BlackRock Global Funds and BlackRock Global Index Funds. Alexander C. Hoctor-Duncan (British): Mr Hoctor-Duncan is a Managing Director of BlackRock and is Head of BlackRock s Europe, Middle East and Africa Retail business. He is a member of the Global Client Group Executive Committee, Leadership Committee, European Executive Committee and also serves as a Director on the Boards of BlackRock Global Funds and BlackRock Global Index Funds. Mr Hoctor-Duncan is based in London. Prior to moving to his current role, Mr Hoctor-Duncan was Head of Retail Sales in the EMEA region. Mr Hoctor-Duncan s service with the firm dates back to 1997, including his 10 BlackRock Strategic Funds (BSF)

13 BSF Directors Report continued years with Mercury Asset Management and Merrill Lynch Investment Management ( MLIM ), which merged with BlackRock in At MLIM, he was head of the UK Retail business and Head of Sales in the UK retail market. Frank P. Le Feuvre (British nationality, Jersey resident): Mr Le Feuvre is the Country Manager for the Channel Islands and a member of BlackRock s Global Client Group. He is also the Managing Director of BlackRock (Channel Islands) Limited. Mr Le Feuvre s service with the firm dates back to 1972, including his years with Merrill Lynch Investment Managers (MLIM), which merged with BlackRock in At MLIM, he was Head of the Jersey business and Managing Director of Merrill Lynch Investment Management (Channel Islands) Limited. Mr Le Feuvre also serves as Director on the Boards of BlackRock Global Funds and BlackRock Global Index Funds and serves on the Boards of a number of other BlackRock entities and sponsored funds. Geoffrey D. Radcliffe (British nationality, Luxembourg resident): Mr Radcliffe is a Managing Director of BlackRock and is based in Luxembourg. He is a Fellow of The Institute of Chartered Accountants in England and Wales and an Associate of The Chartered Institute of Bankers. Mr Radcliffe has 30 years of banking, accounting and fund experience in the Isle of Man, London, Bermuda and Luxembourg. Mr Radcliffe joined the BlackRock Group in He is responsible for BlackRock EMEA and Asia Pacific Fund Administration and is also a Director of a number of BlackRock funds including BlackRock Global Funds and BlackRock Global Index Funds. Bruno Rovelli (Italian): Mr Rovelli is Head of Investment Advisory for BlackRock in Italy. Before joining BlackRock in 2011 Mr Rovelli had been working for over 11 years at Eurizon Capital, the largest asset manager in Italy. At Eurizon Capital Mr Rovelli served in various roles including Chief Strategist, Chief Investment Officer of the institutional business, Head of Quantitative Strategies and, from 2005 onwards, Chief Investment Officer for the mutual funds business. Prior to joining Eurizon Capital Mr Rovelli served as an economist and fixed income strategist for Citigroup, Bank of America and Unicredit. Mr Rovelli is a graduate in economics (First Class Honours) from Luigi Bocconi University in Milan. Mr Rovelli also serves as a Director on the Board of BlackRock Global Funds and BlackRock Global Index Funds. Annual Report and Audited Accounts 11

14 Board of Directors 1 Management and Administration continued Nicholas C.D. Hall (Chairman) Frank P. Le Feuvre Alexander C. Hoctor-Duncan Francine Keiser Geoffrey D. Radcliffe Bruno Rovelli 2 1 All Directors are non-executive Directors. 2 Appointed 20 November 2013 Management and Administration Management Company BlackRock (Luxembourg) S.A. 6D, route de Trèves L-2633 Senningerberg Grand Duchy of Luxembourg Investment Advisers BlackRock Financial Management, Inc., Park Avenue Plaza 55 East 52 nd Street New York, NY USA BlackRock Institutional Trust Company N.A. 400 Howard Street San Francisco CA USA BlackRock Investment Management, LLC 100 Bellevue Parkway Wilmington Delaware USA BlackRock Investment Management (UK) Limited 12 Throgmorton Avenue London EC2N 2DL United Kingdom BlackRock (Singapore) Limited #18-01 Twenty Anson 20 Anson Road Singapore, Sub-Investment Advisers BlackRock Asset Management North Asia Limited* 16/F Cheung Kong Center 2 Queen s Road Central Hong Kong BlackRock Investment Management (Australia) Limited Level 26, 101 Collins Street Melbourne 3000 Australia BlackRock Japan Co., Ltd Marunouchi Chiyoda-ku Tokyo Japan Principal Distributor BlackRock (Channel Islands) Limited One Waverley Place Union Street St. Helier Jersey JE1 0BR Channel Islands Enquiries In the absence of other arrangements, enquiries regarding the Company should be addressed as follows: Written Enquiries: BlackRock Investment Management (UK) Limited, c/o BlackRock (Luxembourg) S.A. P.O. Box 1058 L-1010 Luxembourg Grand Duchy of Luxembourg All other enquiries: Telephone: , Fax: [email protected] Custodian Bank and Administrative Agent State Street Bank Luxembourg S.A. 49, avenue J.F. Kennedy L-1855 Luxembourg Grand Duchy of Luxembourg Transfer Agent and Registrar J.P. Morgan Bank Luxembourg S.A. 6C, route de Trèves L-2633 Senningerberg Grand Duchy of Luxembourg Réviseur d Entreprises Agréé Deloitte Audit, Société à responsabilité limitée 560, rue de Neudorf L-2220 Luxembourg Grand Duchy of Luxembourg Legal Adviser Linklaters LLP 35, avenue J.F. Kennedy L-1855 Luxembourg Grand Duchy of Luxembourg Paying Agents A list of Paying Agents is to be found on page 194. Registered Office 49, avenue J.F. Kennedy L-1855 Luxembourg Grand Duchy of Luxembourg * Appointed on 4 October BlackRock Strategic Funds (BSF)

15 Statement of Net Assets as at 31 May 2014 BlackRock Strategic Funds Combined BlackRock Americas Diversified Equity Absolute Return Fund BlackRock Asia Extension Fund BlackRock Emerging Markets Absolute Return Fund BlackRock Emerging Markets Allocation Fund* Note Assets Securities portfolio at cost 6,923,087,298 98,991, ,624,569 29,024,312 46,486, ,426,952 5,289 3,180 1,349, ,864 Securities portfolio at market value 7,149,514,250 98,997, ,627,749 30,374,207 47,419,732 Cash at bank 2(a) 464,826,342 23,544,654 33,275,907 1,144,110 6,979,589 Time Deposits 2(a) 148,480,518 9,280,000 Due from broker 15 64,435,216 2,415,000 3,219,019 Dividend receivable on contracts for difference 3,889, ,715 2,208, ,883 Interest and dividends receivable 41,593, ,447 42, , ,069 Interest and dividends receivable on swaps Receivable for investments sold 2(a) 417,909,036 66,534 21,592 1,600,946 11,221 Receivable for Fund shares subscribed 112,662,087 1,136,101 93,115 appreciation on: Open Forward foreign exchange transactions 2(d) 2,364,005 Contracts for difference 2(d) 16,738,283 3,454,563 8,367, ,361 Market value of swaps 2(d) 6,283,090 Market value of purchased options/swaptions 2(d) 3,870,665 Other assets 226,918 14,934 1,377 Total assets 8,432,794, ,558, ,959,827 45,893,699 55,581,232 Liabilities Interest payable on contracts for difference 2,080, , ,864 27, ,345 Due to broker 15 13,087,601 2,742,000 2,954,803 Interest and dividends payable on swaps 5,495,135 Dividend payable on contracts for difference 1,995, ,046 Dividends payable 129,633 Payable for investments purchased 2(a) 632,731, ,255 4,027, , ,182 Payable for Fund shares redeemed 18,635, ,880 92,539 4,771 depreciation on: Open Exchange traded futures contracts 2(d) 25,431, ,897 49,627 30,484 Open Forward foreign exchange transactions 2(d) 20,541, , ,377 Contracts for difference 2(d) 17,196,648 2,653,536 Market value of swaps 2(d) 30,800, ,278 Market value of written options/swaptions 2(d) 3,443,837 Other liabilities 4,5,6,7 63,459, , , , ,425 Total liabilities 835,027,876 6,562,035 5,293,674 3,822,704 3,979,239 Total net assets 7,597,766, ,996, ,666,153 42,070,995 51,601,993 * The Fund commenced trading on 15 November Approved on behalf of the Board of Directors Director Date Director Date The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 13

16 Statement of Net Assets as at 31 May 2014 continued BlackRock Emerging Markets Flexi Dynamic Bond Fund* BlackRock Euro Dynamic Diversified Growth Fund BlackRock European Absolute Return Fund BlackRock European Constrained Credit Strategies Fund BlackRock European Credit Strategies Fund Note Assets Securities portfolio at cost 121,479, ,249,120 1,136,536, ,823,825 1,491,914,818 5,586,325 21,977,142 14,894,027 7,068,096 79,800,551 Securities portfolio at market value 127,065, ,226,262 1,151,430, ,891,921 1,571,715,369 Cash at bank 2(a) 22,226,655 46,450, ,970,071 1,074,248 3,961,871 Time Deposits 2(a) Due from broker 15 4,582,956 1,280,221 24,114,598 1,513,947 10,030,209 Dividend receivable on contracts for difference Interest and dividends receivable 1,516, , ,126 1,863,482 19,632,083 Interest and dividends receivable on swaps Receivable for investments sold 2(a) 3,555,164 8,849,356 9,168,737 96,359,489 Receivable for Fund shares subscribed 80, ,360 18,772,219 appreciation on: Open Forward foreign exchange transactions 2(d) 431,062 19,631 Contracts for difference 2(d) Market value of swaps 2(d) 3,389,528 Market value of purchased options/swaptions 2(d) 1,898,065 26, ,850 Other assets 4,034 64,972 Total assets 155,906, ,841,734 1,340,173, ,539,236 1,720,706,090 Liabilities Interest payable on contracts for difference 189,482 Due to broker 15 Interest and dividends payable on swaps 540,357 5, ,204 2,910,030 Dividend payable on contracts for difference 581,456 Dividends payable 86,863 Payable for investments purchased 2(a) 2,840,476 5,814,984 14,429, ,797,404 Payable for Fund shares redeemed 18,108 3,290, ,213 5,999,774 depreciation on: Open Exchange traded futures contracts 2(d) 1, ,825 9,805, ,265 6,302,518 Open Forward foreign exchange transactions 2(d) 2,931, ,204 5,425,274 Contracts for difference 2(d) 10,677,553 Market value of swaps 2(d) 4,378,934 1,921,443 17,394,370 Market value of written options/swaptions 2(d) 951, ,107 Other liabilities 4,5,6,7 58, ,294 13,706,295 2,114,773 20,988,470 Total liabilities 7,906,945 4,990,313 44,413,516 21,141, ,817,840 Total net assets 147,999, ,851,421 1,295,759, ,397,974 1,493,888,250 * The Fund commenced trading on 12 June BlackRock Strategic Funds (BSF)

17 Statement of Net Assets as at 31 May 2014 continued BlackRock European Diversified Equity Absolute Return Fund BlackRock European Opportunities Extension Fund BlackRock Fixed Income Strategies Fund BlackRock Fund of ishares Conservative BlackRock Fund of ishares Dynamic Note Assets Securities portfolio at cost 217,654, ,480, ,123,642 3,988,154 3,589,412 (457) 17,499,899 7,649, , ,059 Securities portfolio at market value 217,654, ,980, ,773,140 4,181,445 4,121,471 Cash at bank 2(a) 36,974,618 9,220,531 12,254,441 12,753 8,409 Time Deposits 2(a) 84,200,429 Due from broker 15 2,865,612 Dividend receivable on contracts for difference 757,264 Interest and dividends receivable 61, ,786 3,883,895 4,382 20,251 Interest and dividends receivable on swaps Receivable for investments sold 2(a) 15,003,726 11,031,330 Receivable for Fund shares subscribed 4,062,851 23,197,486 9,625, appreciation on: Open Forward foreign exchange transactions 2(d) 1,399,536 Contracts for difference 2(d) 626,777 2,662,014 Market value of swaps 2(d) 799,270 Market value of purchased options/swaptions 2(d) Other assets 6,317 14,255 13,301 Total assets 259,380, ,114, ,233,515 4,212,835 4,163,457 Liabilities Interest payable on contracts for difference 297, ,863 Due to broker 15 1,782,000 2,428,000 Interest and dividends payable on swaps 60,574 Dividend payable on contracts for difference 760,134 Dividends payable 31,402 Payable for investments purchased 2(a) 17,180,950 33,668,668 42,397,626 Payable for Fund shares redeemed 289,709 1,042,655 1,326, depreciation on: Open Exchange traded futures contracts 2(d) 761,505 Open Forward foreign exchange transactions 2(d) 754,663 1,765,545 Contracts for difference 2(d) Market value of swaps 2(d) Market value of written options/swaptions 2(d) Other liabilities 4,5,6,7 2,435,623 2,620,474 1,364,369 16,548 16,685 Total liabilities 23,500,106 39,897,660 47,707,874 16,785 16,880 Total net assets 235,880, ,216, ,525,641 4,196,050 4,146,577 The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 15

18 Statement of Net Assets as at 31 May 2014 continued BlackRock Fund of ishares Growth BlackRock Fund of ishares Moderate BlackRock Global Absolute Return Bond Fund BlackRock Latin American Opportunities Fund Note Assets Securities portfolio at cost 9,730,171 16,254, ,311, ,243,974 1,098,441 1,258,231 3,764,881 6,376,087 Securities portfolio at market value 10,828,612 17,512, ,076, ,620,061 Cash at bank 2(a) 21,732 36,294 8,554,860 4,965,931 Time Deposits 2(a) 18,000,591 Due from broker 15 Dividend receivable on contracts for difference Interest and dividends receivable 39,984 41,380 1,615, ,075 Interest and dividends receivable on swaps Receivable for investments sold 2(a) 161,386,967* 298,145 Receivable for Fund shares subscribed ,616 25,311,303 appreciation on: Open Forward foreign exchange transactions 2(d) Contracts for difference 2(d) Market value of swaps 2(d) 417,771 Market value of purchased options/swaptions 2(d) 678,400 Other assets 17,081 21,794 13,822 Total assets 10,907,519 17,640, ,056, ,998,212 Liabilities Interest payable on contracts for difference Due to broker 15 1,216,324 Interest and dividends payable on swaps 260,722 Dividend payable on contracts for difference Dividends payable Payable for investments purchased 2(a) 176,698,746* 189,004 Payable for Fund shares redeemed 3,641 81,060 depreciation on: Open Exchange traded futures contracts 2(d) 549,702 Open Forward foreign exchange transactions 2(d) 2,916,717 Contracts for difference 2(d) Market value of swaps 2(d) Market value of written options/swaptions 2(d) 1,228,224 Other liabilities 4,5,6,7 29,011 41, , ,817 Total liabilities 29,011 45, ,452,855 1,090,821 Total net assets 10,878,508 17,595, ,603, ,907,391 * Includes To be Announced ( TBA ), see Notes 2(a), for further details. 16 BlackRock Strategic Funds (BSF)

19 Three Year Summary of Net Asset s as at 31 May 2014 Currency 31 May May May 2012 BlackRock Americas Diversified Equity Absolute Return Fund Total net assets 120,996, ,107,890 6,805,522 Net asset value per: A Class non-distributing share AUD A Class non-distributing share A Class non-distributing share hedged A Class non-distributing share SEK hedged SEK A Class UK reporting non-distributing fund share GBP D Class UK reporting non-distributing fund share hedged X Class non-distributing share BlackRock Asia Extension Fund Total net assets 202,666,153 46,420,675 9,075,074 Net asset value per: A Class non-distributing share AUD A Class non-distributing share A Class UK reporting non-distributing fund share GBP hedged GBP D Class non-distributing share E Class non-distributing share X Class non-distributing share BlackRock Emerging Markets Absolute Return Fund Total net assets 42,070,995 13,023,136 Net asset value per: A Class non-distributing share A Class non-distributing share hedged A Class UK reporting distributing fund share GBP hedged GBP D Class non-distributing share D Class non-distributing share hedged D Class UK reporting distributing fund share GBP hedged GBP E Class non-distributing share hedged I Class non-distributing share I Class non-distributing share I Class non-distributing share hedged I Class UK reporting distributing fund share GBP GBP I Class UK reporting distributing fund share GBP hedged GBP X Class non-distributing share BlackRock Emerging Markets Allocation Fund* Total net assets 51,601,993 Net asset value per: A Class non-distributing share C Class non-distributing share D Class non-distributing share E Class non-distributing share I Class non-distributing share X Class non-distributing share BlackRock Emerging Markets Flexi Dynamic Bond Fund** Total net assets 147,999,972 Net asset value per: A Class non-distributing share A Class non-distributing share hedged D Class non-distributing share D Class non-distributing share hedged D Class UK reporting distributing fund share GBP E Class non-distributing share E Class non-distributing share hedged X Class non-distributing share Class name changed, see Note 1, for further details. * The Fund commenced trading on 15 November ** The Fund commenced trading on 12 June The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 17

20 Three Year Summary of Net Asset s as at 31 May 2014 continued Currency 31 May May May 2012 BlackRock Euro Dynamic Diversified Growth Fund Total net assets 433,851, ,499,726 66,828,783 Net asset value per: A Class non-distributing share A Class non-distributing share SEK hedged SEK D Class non-distributing share E Class non-distributing share I Class non-distributing share I Class non-distributing share SEK hedged SEK X Class non-distributing share BlackRock European Absolute Return Fund Total net assets 1,295,759,972 1,203,613, ,453,107 Net asset value per: A Class distributing share A Class non-distributing share A Class non-distributing share SEK hedged SEK D Class distributing share D Class non-distributing share D Class non-distributing share CHF hedged CHF D Class UK reporting non-distributing fund share GBP hedged GBP E Class non-distributing share I Class non-distributing share BlackRock European Constrained Credit Strategies Fund Total net assets 137,397, ,882,229 65,665,525 Net asset value per: I Class non-distributing share BlackRock European Credit Strategies Fund Total net assets 1,493,888, ,717, ,259,688 Net asset value per: H Class non-distributing share H Class non-distributing share CHF hedged CHF H Class non-distributing share hedged H Class UK reporting non-distributing fund share GBP hedged GBP I Class non-distributing share SEK hedged SEK 1, I Class UK reporting non-distributing fund share I Class UK reporting non-distributing fund share GBP hedged GBP I Class UK reporting non-distributing fund share hedged T Class non-distributing share U Class non-distributing share U Class UK reporting non-distributing fund share GBP U Class UK reporting non-distributing fund share hedged X Class non-distributing share X Class UK reporting non-distributing fund share GBP hedged GBP BlackRock European Diversified Equity Absolute Return Fund Total net assets 235,880, ,192, ,899,516 Net asset value per: A Class non-distributing share AUD A Class non-distributing share A Class non-distributing share CHF hedged CHF A Class non-distributing share SEK hedged SEK A Class UK reporting non-distributing fund share GBP hedged GBP D Class non-distributing share hedged D Class UK reporting non-distributing fund share D Class UK reporting non-distributing fund share GBP hedged GBP E Class non-distributing share I Class non-distributing share I Class UK reporting non-distributing fund share GBP hedged GBP X Class non-distributing share Class name changed, see Note 1, for further details. 18 BlackRock Strategic Funds (BSF)

21 Three Year Summary of Net Asset s as at 31 May 2014 continued Currency 31 May May May 2012 BlackRock European Opportunities Absolute Return Fund* Total net assets 1,000,951 22,780,307 Net asset value per: A Class non-distributing share D Class non-distributing share D Class UK reporting non-distributing fund share GBP hedged GBP E Class non-distributing share I Class non-distributing share BlackRock European Opportunities Extension Fund Total net assets 512,216,924 11,081,561 10,575,753 Net asset value per: A Class non-distributing share A Class UK reporting distributing fund share GBP D Class non-distributing share D Class UK reporting distributing fund share GBP E Class non-distributing share I Class non-distributing share BlackRock Fixed Income Strategies Fund Total net assets 625,525, ,006,228 67,454,855 Net asset value per: A Class distributing share A Class distributing share CHF hedged CHF A Class distributing share hedged A Class non-distributing share A Class non-distributing share CHF hedged CHF A Class non-distributing share hedged D Class non-distributing share E Class non-distributing share I Class non-distributing share X Class non-distributing share BlackRock Fund of ishares Conservative Total net assets 4,196,050 2,923,530 1,309,304 Net asset value per: K Class non-distributing share L Class non-distributing share M Class non-distributing share BlackRock Fund of ishares Dynamic Total net assets 4,146,577 2,848,575 1,718,713 Net asset value per: K Class non-distributing share L Class non-distributing share M Class non-distributing share BlackRock Fund of ishares Growth Total net assets 10,878,508 6,633,192 3,962,973 Net asset value per: K Class non-distributing share L Class non-distributing share M Class non-distributing share BlackRock Fund of ishares Moderate Total net assets 17,595,349 9,895,030 5,183,611 Net asset value per: K Class non-distributing share L Class non-distributing share M Class non-distributing share * The Fund was liquidated on 17 July The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 19

22 Three Year Summary of Net Asset s as at 31 May 2014 continued Currency 31 May May May 2012 BlackRock Global Absolute Return Bond Fund Total net assets 298,603, ,704,772 50,002,078 Net asset value per: A Class non-distributing share A Class non-distributing share SEK hedged SEK 1, , A Class non-distributing share hedged D Class non-distributing share E Class non-distributing share X Class non-distributing share BlackRock Latin American Opportunities Fund Total net assets 125,907, ,714, ,326,906 Net asset value per: A Class non-distributing share A Class non-distributing share A Class UK reporting non-distributing fund share GBP C Class non-distributing share D Class non-distributing share D Class non-distributing share D Class UK reporting non-distributing fund share GBP BlackRock Mining Opportunities Fund* Total net assets 10,317,581 10,445,632 Net asset value per: D Class UK reporting non-distributing fund share GBP D Class UK reporting non-distributing fund share * The Fund was liquidated on 18 March BlackRock Strategic Funds (BSF)

23 Statement of Operations and Changes in Net Assets for the year ended 31 May 2014 BlackRock Strategic Funds Combined BlackRock Americas Diversified Equity Absolute Return Fund BlackRock Asia Extension Fund BlackRock Emerging Markets Absolute Return Fund BlackRock Emerging Markets Allocation Fund* BlackRock Emerging Markets Flexi Dynamic Bond Fund** Note Net assets at the beginning of the year (1) 4,085,272, ,107,890 46,420,675 13,023,136 Income Bank interest 574,483 68,243 5,105 24,249 Bond interest 100,119, ,273 87, ,428 4,987,540 Swap interest and dividends 173,683 77,877 Dividends 18,901, ,899 3,557 Contracts for difference dividends 2(d) 5,873,555 1,150,343 3,754, ,641 Total income 2(c) 125,642,662 1,340,616 3,909, ,004 1,124,875 5,065,417 Expenses Bank interest 74,637 22,870 40,348 Contracts for difference interest 2(d) 19,641,487 5,408,341 1,335,627 58, ,539 Swap interest and dividends 17,905,715 7,810 Contracts for difference dividends 2(d) 5,629, ,612 Administration fees 5 10,086, , ,040 45,104 66,200 81,041 Custodian and depositary fees 6 911,657 4,327 2,546 15, ,582 Custodian transaction fees 6 2,202, , ,812 81,734 26,313 61,990 Luxembourg tax 8 1,995,764 39,558 33,000 8,547 16,664 25,349 Performance fees 7 39,379, ,159 53, ,266 Distribution fees 4 1,249, Management fees 4 56,881, , , , , ,657 Less Management fee rebate 4 (340,645) (4,894) Total expenses before reimbursement 155,618,216 7,099,751 2,384, , , ,051 Reimbursement of expenses 4 195,786 17,216 Total expenses after reimbursement 155,422,430 7,099,751 2,384, , , ,051 Net investment income/(deficit) (29,779,768) (5,759,135) 1,525,701 (464,536) 404,288 4,475,366 Net gain/(loss) realised on: Investments 2(a) 251,110,457 64, ,383, ,486 (202,062) Contracts for difference 2(d) 92,543,278 1,524,470 (3,858,154) 1,428,931 (346,118) Exchange traded futures contracts 2(d) (62,576,646) 1,218,774 1,654,217 88, ,453 (15,632) Foreign currencies and forward foreign exchange transactions 2(d) (11,896,211) 2,362,361 (1,326) 381,919 (211,862) (3,959,471) Swap transactions 2(d) (9,324,352) 243,566 (1,133,998) Options contracts 2(d) (5,778,206) (104,016) (378,210) Net realised gain/(loss) for the year 254,078,320 5,413,216 (2,204,633) 3,178,683 (141,041) (5,689,373) Net change in unrealised on: Investments 2(a) 118,584,021 (22,962) (3,175) 1,846, ,864 5,586,325 Foreign currencies on other transactions 341,997 2,005 5 (7,714) Contracts for difference 2(d) (3,175,574) 12,853,159 6,026,110 (2,878,128) 436,361 Open exchange traded futures contracts 2(d) (30,904,647) (376,800) (174,897) (49,627) (30,484) (1,362) Forward foreign exchange transactions 2(d) (11,117,729) (628,293) 32 (218,172) 431,062 Swap transactions 2(d) (22,386,212) (113,278) (1,776,418) Options contracts 2(d) 127,426 Net change in unrealised for the year 51,469,282 11,711,826 5,848,070 (1,297,205) 1,338,746 4,231,893 Increase/(Decrease) in net assets as a result of operations 275,767,834 11,365,907 5,169,138 1,416,942 1,601,993 3,017,886 Movements in share capital Net receipts as a result of issue of shares 5,442,247,541 39,072, ,997,186 37,491,708 50,000, ,170,536 Net payments as a result of repurchase of shares (2,253,149,949) (164,550,042) (23,920,846) (9,860,791) (42,101,587) Increase/(Decrease) in net assets as a result of movements in share capital 3,189,097,592 (125,477,244) 151,076,340 27,630,917 50,000, ,068,949 Dividends declared (129,344) (86,863) Foreign exchange adjustment 47,758,090 Net assets at the end of the year 7,597,766, ,996, ,666,153 42,070,995 51,601, ,999,972 * The Fund commenced trading on 15 November ** The Fund commenced trading on 12 June (1) The opening balance was combined using the average foreign exchange rates for the year (see Note 2(f)). The same net assets when converted using the average exchange rates for the year ended 31 May 2013 reflected a figure of 3,936,993,045. The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 21

24 Statement of Operations and Changes in Net Assets for the year ended 31 May 2014 continued BlackRock Euro Dynamic Diversified Growth Fund BlackRock European Absolute Return Fund BlackRock European Constrained Credit Strategies Fund BlackRock European Credit Strategies Fund BlackRock European Diversified Equity Absolute Return Fund Note Net assets at the beginning of the year (1) 160,499,726 1,203,613, ,882, ,717, ,192,059 Income Bank interest 21, ,340 12,155 23,942 11,161 Bond interest 653,525 75,557 5,587,557 53,061, ,118 Swap interest and dividends 70,810 Dividends 899,163 5,226, ,478 1,557,392 26,433 Contracts for difference dividends 2(d) Total income 2(c) 1,644,808 5,553,156 5,794,190 54,642, ,712 Expenses Bank interest Contracts for difference interest 2(d) 3,931,267 4,845,711 Swap interest and dividends 1,760,910 10,851,941 Contracts for difference dividends 2(d) 3,545, ,500 Administration fees 5 325,446 4,003,510 68, , ,913 Custodian and depositary fees 6 23, ,090 23, ,148 4,659 Custodian transaction fees 6 33, ,326 79, , ,262 Luxembourg tax 8 71, ,422 14, ,093 96,571 Performance fees 7 7,565,210 1,727,963 17,212,181 1,374,195 Distribution fees 4 4, ,061 45,584 Management fees 4 1,725,210 18,448,140 1,368,709 10,507,112 2,344,336 Less Management fee rebate 4 (105,496) Total expenses before reimbursement 2,077,536 39,019,508 5,042,678 39,780,514 9,808,731 Reimbursement of expenses 4 Total expenses after reimbursement 2,077,536 39,019,508 5,042,678 39,780,514 9,808,731 Net investment income/(deficit) (432,728) (33,466,352) 751,512 14,862,228 (9,443,019) Net gain/(loss) realised on: Investments 2(a) 3,462,441 91,974,083 7,546,734 53,385,074 22,472 Contracts for difference 2(d) 52,288,519 17,220,624 Exchange traded futures contracts 2(d) 2,304,666 (31,496,008) (1,173,880) (11,318,429) (1,392) Foreign currencies and forward foreign exchange transactions 2(d) 1,680,659 (1,482,524) 105,874 4,129,792 (1,056,038) Swap transactions 2(d) 539,567 (862,861) (3,596,440) Options contracts 2(d) 1,261,610 2,725,894 (896,469) (6,830,304) Net realised gain/(loss) for the year 9,248, ,009,964 4,719,398 35,769,693 16,185,666 Net change in unrealised on: Investments 2(a) 13,134,355 (20,843,220) 4,511,641 62,186,903 7,731 Foreign currencies on other transactions 3,772 (168) 13,267 75,060 1,134 Contracts for difference 2(d) (13,920,761) (2,711,519) Open exchange traded futures contracts 2(d) (949,414) (11,893,695) (927,139) (7,197,124) Forward foreign exchange transactions 2(d) (3,202,503) 234,400 (360,122) (1,678,279) (536,643) Swap transactions 2(d) 3,278,114 (1,802,718) (15,434,587) Options contracts 2(d) 444, ,213 (73,370) (718,267) Net change in unrealised for the year 12,709,141 (46,184,231) 1,361,559 37,233,706 (3,239,297) Increase/(Decrease) in net assets as a result of operations 21,525,356 34,359,381 6,832,469 87,865,627 3,503,350 Movements in share capital Net receipts as a result of issue of shares 274,274, ,782,290 47,204,169 1,016,659, ,648,833 Net payments as a result of repurchase of shares (22,448,477) (702,995,495) (48,520,893) (377,353,874) (137,464,153) Increase/(Decrease) in net assets as a result of movements in share capital 251,826,339 57,786,795 (1,316,724) 639,305,221 85,184,680 Dividends declared Foreign exchange adjustment Net assets at the end of the year 433,851,421 1,295,759, ,397,974 1,493,888, ,880,089 (1) The opening balance was combined using the average foreign exchange rates for the year (see Note 2(f)). The same net assets when converted using the average exchange rates for the year ended 31 May 2013 reflected a figure of 3,936,993, BlackRock Strategic Funds (BSF)

25 Statement of Operations and Changes in Net Assets for the year ended 31 May 2014 continued BlackRock European Opportunities Absolute Return Fund* BlackRock European Opportunities Extension Fund BlackRock Fixed Income Strategies Fund BlackRock Fund of ishares Conservative BlackRock Fund of ishares Dynamic Note Net assets at the beginning of the year (1) 1,000,951 11,081, ,006,228 2,923,530 2,848,575 Income Bank interest 14,804 Bond interest 5,627,239 Swap interest and dividends Dividends 3,500,745 10,985 75,438 63,287 Contracts for difference dividends 2(d) 10, ,808 Total income 2(c) 10,188 3,874,357 5,638,224 75,438 63,287 Expenses Bank interest 943 7,498 Contracts for difference interest 2(d) 552,191 Swap interest and dividends 313,736 Contracts for difference dividends 2(d) Administration fees , ,709 3,750 3,447 Custodian and depositary fees ,585 20,404 6,810 7,318 Custodian transaction fees 6 10, , ,140 22,548 14,198 Luxembourg tax 8 102, ,191 2,083 1,907 Performance fees 7 583,822 Distribution fees , , ,058 Management fees 4 1,181 1,892,027 1,241,720 22,497 20,685 Less Management fee rebate 4 (11,712) (15,670) Total expenses before reimbursement 13,425 3,926,875 2,401,468 46,697 34,943 Reimbursement of expenses 4 9,061 51,099 24,486 16,992 Total expenses after reimbursement 4,364 3,875,776 2,401,468 22,211 17,951 Net investment income/(deficit) 5,824 (1,419) 3,236,756 53,227 45,336 Net gain/(loss) realised on: Investments 2(a) 3,158,339 12,346,204 16,946 29,171 Contracts for difference 2(d) 23,654 (200,162) Exchange traded futures contracts 2(d) (4,849,936) Foreign currencies and forward foreign exchange transactions 2(d) 22,317 1,677, ,759 (114) (263) Swap transactions 2(d) (1,003,373) Options contracts 2(d) (22,341) Net realised gain/(loss) for the year 45,971 4,635,796 6,817,313 16,832 28,908 Net change in unrealised on: Investments 2(a) 16,712,674 6,769,185 92, ,633 Foreign currencies on other transactions (1,338) (12,026) 58, Contracts for difference 2(d) (31,660) 2,217,281 Open exchange traded futures contracts 2(d) (831,104) Forward foreign exchange transactions 2(d) (20,611) 1,427,230 (1,505,538) Swap transactions 2(d) 14,351 Options contracts 2(d) (14,042) Net change in unrealised for the year (53,609) 20,345,159 4,490,996 92, ,804 Increase/(Decrease) in net assets as a result of operations (1,814) 24,979,536 14,545, , ,048 Movements in share capital Net receipts as a result of issue of shares 5, ,133, ,063,279 2,037,426 1,784,149 Net payments as a result of repurchase of shares (1,004,293) (98,977,570) (22,057,529) (927,303) (846,195) Increase/(Decrease) in net assets as a result of movements in share capital (999,137) 476,155, ,005,750 1,110, ,954 Dividends declared (31,402) Foreign exchange adjustment Net assets at the end of the year 512,216, ,525,641 4,196,050 4,146,577 * The Fund was liquidated on 17 July (1) The opening balance was combined using the average foreign exchange rates for the year (see Note 2(f)). The same net assets when converted using the average exchange rates for the year ended 31 May 2013 reflected a figure of 3,936,993,045. The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 23

26 Statement of Operations and Changes in Net Assets for the year ended 31 May 2014 continued BlackRock Fund of ishares Growth BlackRock Fund of ishares Moderate BlackRock Global Absolute Return Bond Fund BlackRock Latin American Opportunities Fund BlackRock Mining Opportunities Fund* Note Net assets at the beginning of the year (1) 6,633,192 9,895, ,704, ,714,453 10,317,581 Income Bank interest 30 10,992 8, Bond interest 4,234,745 86,462 27,740 Swap interest and dividends Dividends 160, ,652 2,190,517 96,584 Contracts for difference dividends 2(d) 342 Total income 2(c) 160, ,652 4,245,737 2,285, ,340 Expenses Bank interest Contracts for difference interest 2(d) 279 Swap interest and dividends 303,544 Contracts for difference dividends 2(d) Administration fees 5 8,193 12, , ,645 19,211 Custodian and depositary fees 6 7,844 10,326 2, ,944 6,546 Custodian transaction fees 6 18,466 21, ,812 42,924 46,103 Luxembourg tax 8 4,322 6,833 55,111 65,142 2,687 Performance fees 7 79,675 64,388 Distribution fees 4 2, ,000 28,069 Management fees 4 49,160 77, ,945 2,739,839 64,036 Less Management fee rebate 4 (34,591) (49,060) (31,644) Total expenses before reimbursement 55,584 80,439 1,359,832 3,581, ,862 Reimbursement of expenses 4 15,659 14,702 Total expenses after reimbursement 39,925 65,737 1,359,832 3,581, ,862 Net investment income/(deficit) 120, ,915 2,885,905 (1,296,477) (13,522) Net gain/(loss) realised on: Investments 2(a) 50,377 47,344 3,892,634 14,017,018 (2,510,320) Contracts for difference 2(d) 146,834 Exchange traded futures contracts 2(d) (2,054,514) Foreign currencies and forward foreign exchange transactions 2(d) (542) (602) (1,331,533) (15,305,175) (697,872) Swap transactions 2(d) (1,311,320) Options contracts 2(d) (153,349) Net realised gain/(loss) for the year 49,835 46,742 (958,082) (1,288,157) (3,061,358) Net change in unrealised on: Investments 2(a) 572, ,053 3,676,710 (10,981,243) 2,454,545 Foreign currencies on other transactions ,990 46,722 7,821 Contracts for difference 2(d) (69,436) Open exchange traded futures contracts 2(d) (578,071) Forward foreign exchange transactions 2(d) (2,268,684) Swap transactions 2(d) (1,206,628) Options contracts 2(d) 215,782 Net change in unrealised for the year 573, ,386 (82,901) (10,934,521) 2,392,930 Increase/(Decrease) in net assets as a result of operations 743, ,043 1,844,922 (13,519,155) (681,950) Movements in share capital Net receipts as a result of issue of shares 4,155,057 7,680, ,906,028 34,128,994 53,273 Net payments as a result of repurchase of shares (653,365) (916,907) (18,852,070) (64,416,901) (9,688,904) Increase/(Decrease) in net assets as a result of movements in share capital 3,501,692 6,763, ,053,958 (30,287,907) (9,635,631) Dividends declared Foreign exchange adjustment Net assets at the end of the year 10,878,508 17,595, ,603, ,907,391 * The Fund was liquidated on 18 March (1) The opening balance was combined using the average foreign exchange rates for the year (see Note 2(f)). The same net assets when converted using the average exchange rates for the year ended 31 May 2013 reflected a figure of 3,936,993, BlackRock Strategic Funds (BSF)

27 Statement of Changes in Shares Outstanding as at 31 May 2014 Shares outstanding at the beginning of the year Shares issued Shares repurchased Shares outstanding at the end of the year BlackRock Americas Diversified Equity Absolute Return Fund A Class non-distributing share AUD 49 25,765 15,313 10,501 A Class non-distributing share 7, ,688 5,232 A Class non-distributing share hedged , ,255 A Class non-distributing share SEK hedged 785, , ,751 1,397,172 A Class UK reporting non-distributing fund share GBP 6,259 4,186 10, D Class UK reporting non-distributing fund share hedged 1 263,631 78, , ,732 X Class non-distributing share 1,701,980 75,042 1,256, ,197 BlackRock Asia Extension Fund A Class non-distributing share AUD 166,870 81,155 85,715 A Class non-distributing share 204, ,777 99, ,168 A Class UK reporting non-distributing fund share GBP hedged D Class non-distributing share 40,876 25,725 15,151 E Class non-distributing share X Class non-distributing share 1,436, ,436,783 BlackRock Emerging Markets Absolute Return Fund A Class non-distributing share 26,750 1,667 25,083 A Class non-distributing share hedged 50,696 39,846 10,850 A Class UK reporting distributing fund share GBP hedged 12, ,748 D Class non-distributing share 64,981 26,315 7,307 83,989 D Class non-distributing share hedged 7,579 51,474 23,373 35,680 D Class UK reporting distributing fund share GBP hedged E Class non-distributing share hedged I Class non-distributing share I Class non-distributing share 24,247 1,362 22,885 I Class non-distributing share hedged I Class UK reporting distributing fund share GBP I Class UK reporting distributing fund share GBP hedged X Class non-distributing share 49, , ,061 BlackRock Emerging Markets Allocation Fund* A Class non-distributing share 499, ,750 C Class non-distributing share D Class non-distributing share E Class non-distributing share I Class non-distributing share X Class non-distributing share BlackRock Emerging Markets Flexi Dynamic Bond Fund** A Class non-distributing share 350, , A Class non-distributing share hedged D Class non-distributing share 217, ,735 D Class non-distributing share hedged 59,301 35,898 23,403 D Class UK reporting distributing fund share GBP 24, ,356 E Class non-distributing share E Class non-distributing share hedged X Class non-distributing share 1,181,503 34,029 1,147,474 BlackRock Euro Dynamic Diversified Growth Fund A Class non-distributing share 89,399 81,651 16, ,370 A Class non-distributing share SEK hedged 1,265,931 3,021, ,512 3,737,742 D Class non-distributing share 217, ,871 9, ,878 E Class non-distributing share ,405 1,293 32,413 I Class non-distributing share 779, , ,424 1,440,305 I Class non-distributing share SEK hedged 329, , ,751 X Class non-distributing share 189, ,430 1,097,293 1 Class name changed, see Note 1, for further details. * The Fund commenced trading on 15 November ** The Fund commenced trading on 12 June The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 25

28 Statement of Changes in Shares Outstanding as at 31 May 2014 continued Shares outstanding at the beginning of the year Shares issued Shares repurchased Shares outstanding at the end of the year BlackRock European Absolute Return Fund A Class distributing share 185,603 66,301 49, ,491 A Class non-distributing share 4,702,550 3,241,875 2,681,143 5,263,282 A Class non-distributing share SEK hedged 12,994 5,011 14,082 3,923 D Class distributing share 94,725 16,735 31,185 80,275 D Class non-distributing share 3,549,507 1,763,146 2,299,388 3,013,265 D Class non-distributing share CHF hedged 68,737 68,743 57,431 80,049 D Class UK reporting non-distributing fund share GBP hedged 115,604 19,510 31, ,456 E Class non-distributing share 499, , , ,488 I Class non-distributing share 642, , , ,655 BlackRock European Constrained Credit Strategies Fund I Class non-distributing share 1,204, , ,630 1,190,462 BlackRock European Credit Strategies Fund H Class non-distributing share 504,066 1,490, ,494 1,654,708 H Class non-distributing share CHF hedged 7, ,240 6, ,954 H Class non-distributing share hedged 94, ,701 35, ,725 H Class UK reporting non-distributing fund share GBP hedged 16,488 79,082 1,079 94,491 I Class non-distributing share SEK hedged 296, ,820 I Class UK reporting non-distributing fund share 1 2,873,160 4,306,711 2,109,276 5,070,595 I Class UK reporting non-distributing fund share GBP hedged 1,038, , ,874 1,611,096 I Class UK reporting non-distributing fund share hedged 1 850, , , ,224 T Class non-distributing share 457,421 94, ,383 U Class non-distributing share ,941 7, ,108 U Class UK reporting non-distributing fund share GBP 36 7, ,602 U Class UK reporting non-distributing fund share hedged ,455 1, ,114 X Class non-distributing share 1,022,586 1,022,586 BlackRock European Diversified Equity Absolute Return Fund A Class non-distributing share AUD 35,927 7,856 20,958 22,825 A Class non-distributing share 115, , , ,646 A Class non-distributing share CHF hedged 1, ,591 A Class non-distributing share SEK hedged 2,772,237 7,766,131 3,173,746 7,364,622 A Class UK reporting non-distributing fund share GBP hedged 7,746 4,064 10,368 1,442 D Class non-distributing share hedged 23,858 4,687 8,544 20,001 D Class UK reporting non-distributing fund share 569, , , ,749 D Class UK reporting non-distributing fund share GBP hedged 46,784 13,658 9,150 51,292 E Class non-distributing share 93, ,302 61,058 I Class non-distributing share 112,205 2,589 25,100 89,694 X Class non-distributing share BlackRock European Opportunities Absolute Return Fund*** A Class non-distributing share 2, ,667 D Class non-distributing share 2,018 2,018 D Class UK reporting non-distributing fund share GBP hedged 1,158 1,158 E Class non-distributing share 2,934 2,934 I Class non-distributing share 1 1 BlackRock European Opportunities Extension Fund A Class non-distributing share 62,317 1,453, ,070 1,178,729 A Class UK reporting distributing fund share GBP 3,668 18,545 4,661 17,552 D Class non-distributing share , , ,323 D Class UK reporting distributing fund share GBP 33 2, ,240 E Class non-distributing share 13, ,766 96, ,374 I Class non-distributing share 100, ,000 1 Class name changed, see Note 1, for further details. *** The Fund was liquidated on 17 July BlackRock Strategic Funds (BSF)

29 Statement of Changes in Shares Outstanding as at 31 May 2014 continued Shares outstanding at the beginning of the year Shares issued Shares repurchased Shares outstanding at the end of the year BlackRock Fixed Income Strategies Fund A Class distributing share 187,933 1, ,601 A Class distributing share CHF hedged A Class distributing share hedged A Class non-distributing share 54, ,709 75, ,949 A Class non-distributing share CHF hedged A Class non-distributing share hedged D Class non-distributing share 235,149 1,429,820 75,528 1,589,441 E Class non-distributing share 16,579 1,865,930 40,927 1,841,582 I Class non-distributing share 37 61, ,456 X Class non-distributing share 698,840 88, ,191 BlackRock Fund of ishares Conservative K Class non-distributing share 253, ,331 40, ,246 L Class non-distributing share 7,536 4, ,312 M Class non-distributing share 1,784 43,554 44, BlackRock Fund of ishares Dynamic K Class non-distributing share 179, ,704 19, ,812 L Class non-distributing share 58,504 4,966 51,000 12,470 M Class non-distributing share 15, ,646 13,119 BlackRock Fund of ishares Growth K Class non-distributing share 547, ,249 44, ,420 L Class non-distributing share 23,492 5,872 6,153 23,211 M Class non-distributing share 14, ,331 7,814 BlackRock Fund of ishares Moderate K Class non-distributing share 861, ,625 78,390 1,445,840 L Class non-distributing share 6,745 8, ,574 M Class non-distributing share 3, ,109 3,053 BlackRock Global Absolute Return Bond Fund A Class non-distributing share , ,447 A Class non-distributing share SEK hedged 59, ,382 27, ,851 A Class non-distributing share hedged D Class non-distributing share 260,349 27, , ,710 E Class non-distributing share 939 4,430 3,533 1,836 X Class non-distributing share 738, ,250 1,598,777 BlackRock Latin American Opportunities Fund A Class non-distributing share 129,140 11,887 75,727 65,300 A Class non-distributing share 790,784 82, , ,897 A Class UK reporting non-distributing fund share GBP 326, ,154 9, ,887 C Class non-distributing share 37, ,483 15,170 D Class non-distributing share 40 9,292 3,451 5,881 D Class non-distributing share 18,588 76,690 47,325 47,953 D Class UK reporting non-distributing fund share GBP BlackRock Mining Opportunities Fund**** D Class UK reporting non-distributing fund share GBP D Class UK reporting non-distributing fund share 124, ,683 **** The Fund was liquidated on 18 March The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 27

30 BlackRock Americas Diversified Equity Absolute Return Fund Portfolio of Investments as at 31 May 2014 Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding Market % of Net Assets Holding Market % of Net Assets BONDS United States 5,000,000 Federal Home Loan Bank Discount Notes 6/8/2014 (Zero Coupon) 4,999, ,500,000 Federal Home Loan Banks 0.18% 9/1/2015 1,501, ,800,000 Federal Home Loan Mortgage Corp 1.00% 20/8/2014 2,805, ,000,000 United States Treasury Bill 19/6/2014 (Zero Coupon) 2,999, ,000,000 United States Treasury Note 2.125% 30/11/ ,103, ,410, Total Bonds 22,410, CERTIFICATES OF DEPOSIT United States 4,000,000 Bank of Nova Scotia 0.24% 17/2/2015 4,000, ,500,000 Nordea Bank Finland Plc 0.29% 20/11/2014 1,502, ,300,000 Nordea Bank Finland Plc 0.205% 10/10/2014 1,299, ,000,000 Oversea Chinese Banking Corp Ltd 0.22% 12/9/2014 5,001, ,803, Total Certificates of Deposit 11,803, United States continued 2,000,000 Regency Markets No.1 LLC 18/6/2014 (Zero Coupon) 1,999, ,000,000 Salisbury Receivables Company LLC 9/6/2014 (Zero Coupon) 2,999, ,000,000 Sheffield Receivables Corp 11/7/2014 (Zero Coupon) 1,999, ,500,000 Societe Generale North America Inc 4/8/2014 (Zero Coupon) 6,498, ,500,000 Sumitomo Mitsui Banking Corp 6/8/2014 (Zero Coupon) 4,498, ,200,000 Sumitomo Mitsui Banking Corp 7/8/2014 (Zero Coupon) 1,199, ,000,000 Svenska Handelsbanken Inc 11/6/2014 (Zero Coupon) 3,999, ,783, Total Commercial Paper 64,783, Total Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market 98,997, Securities portfolio at market value 98,997, Other Net Assets 21,999, Total Net Assets () 120,996, COMMERCIAL PAPER United States 3,514,000 Alpine Securitization Corp 22/10/2014 (Zero Coupon) 3,510, ,000,000 Antalis US Funding Corp 5/8/2014 (Zero Coupon) 5,997, ,100,000 Antalis US Funding Corp 11/8/2014 (Zero Coupon) 1,099, ,000,000 Bank of Tokyo-Mitsubishi UFJ Ltd/ The 27/6/2014 (Zero Coupon) 1,999, ,900,000 Bank of Tokyo-Mitsubishi UFJ Ltd/ The 9/6/2014 (Zero Coupon) 2,899, ,000,000 Cafco LLC 10/9/2014 (Zero Coupon) 3,997, ,500,000 Caisse centrale Desjardins du Quebec 3/7/2014 (Zero Coupon) 1,499, ,000,000 Cancara Asset Securization LLC 9/6/2014 (Zero Coupon) 3,999, ,000,000 DnB Bank ASA 30/7/2014 (Zero Coupon) 3,998, ,090,000 ING (US) Funding LLC 8/8/2014 (Zero Coupon) 3,088, ,000,000 Matchpoint Master 15/9/2014 (Zero Coupon) 1,998, ,000,000 Mont Blanc Capital Corp 9/6/2014 (Zero Coupon) 2,999, ,000,000 Oversea-Chinese Banking Corp Ltd 6/8/2014 (Zero Coupon) 1,999, ,500,000 Rabobank USA Financial Corp 27/6/2014 (Zero Coupon) 2,499, BlackRock Strategic Funds (BSF)

31 BlackRock Americas Diversified Equity Absolute Return Fund continued Contracts For Difference as at 31 May 2014 Holding Commitment Holding Commitment Bermuda (705) Nordic American Tankers Ltd (5,865) 1,389 (5,865) 1,389 Brazil (49,600) Abril Educacao SA (722,560) (8,342) 95,000 AES Tiete SA (Pref) 733,668 4,107 13,100 Agrenco Ltd BDR (86,400) Aliansce Shopping Centers SA (705,754) (65,604) 900 Alpargatas SA (Pref) 4,769 (106) 69 AMBEV SA 498 (1) 50,200 AMBEV SA 362,183 4,853 16,600 Arteris SA 130,122 (3,820) 59,040 Banco ABC Brasil SA (Pref) 345,979 26,547 21,600 Banco Daycoval SA (Pref) 87,690 8,525 3,500 Banco do Brasil SA 35,951 6,862 67,300 Banco do Estado do Rio Grande do Sul SA 'B' (Pref) 329, ,200 Banco Industrial e Comercial SA (Pref) 30, (28,900) Banco Panamericano SA (Pref) (43,659) 4,093 99,700 BM&FBovespa SA 507,830 55,596 (65,500) BR Malls Participacoes SA (544,666) (42,642) (89,800) BR Properties SA (729,525) (73,486) (96,600) Brasil Brokers Participacoes SA (167,457) 26,117 (20,302) Brasil Pharma SA (Right) (181) (181) (65,600) Brasil Pharma SA (109,333) (9,685) 51,100 Braskem SA 'A' (Pref) 334,974 (13,298) (15,300) BRF SA (331,364) (45,978) (89,100) CCR SA (696,838) (83,323) (36) CETIP SA - Mercados Organizados (Right) (72) (72) (50,200) CETIP SA - Mercados Organizados (647,857) (117,528) 7,900 Cia Brasileira de Distribuicao (Pref) 359,830 37,387 2,700 Cia de Gas de Sao Paulo COMGAS 'A' (Pref) 60, ,600 Cia de Saneamento Basico do Estado de Sao Paulo 65,794 1,425 5,300 Cia de Saneamento de Minas Gerais-COPASA 92,112 11,487 (400) Cia Ferro Ligas da Bahia - Ferbasa (Pref) (2,175) 121 (56,400) Cia Hering (565,005) 63,235 (89,900) Cia Siderurgica Nacional SA (346,540) 19,000 (40,400) Cielo SA (728,244) (33,140) 34,900 Contax Participacoes SA (Pref) 49, ,100 Cosan SA Industria e Comercio 510,117 (5,077) 118,800 Cyrela Brazil Realty SA Empreendimentos e Participacoes 708,882 57,320 (2,300) Cyrela Commercial Properties SA Empreendimentos e Participacoes (18,962) (71) 61,300 Direcional Engenharia SA 308,412 30,016 (163,530) Duratex SA (666,800) (6,067) (113,600) EcoRodovias Infraestrutura e Logistica SA (738,603) (61,745) (600) Embraer SA (5,428) (255) (244,733) Eneva SA (Right) (5,453) (3,611) (789,800) Eneva SA (429,392) 115,135 (72,300) Equatorial Energia SA (733,955) (152,636) 9,500 Estacio Participacoes SA 114,051 25, ,100 Eternit SA 561,176 7, ,400 Even Construtora e Incorporadora SA 717,529 (38,223) 62,900 Ez Tec Empreendimentos e Participacoes SA 667,121 (36,045) (2,600) Fertilizantes Heringer SA (8,458) (1,310) Brazil continued (39,300) Fibria Celulose SA (364,103) 23,103 (4,700) Fleury SA (35,459) (1,176) (75,100) Gafisa SA (112,115) 4,897 (600) General Shopping Brasil SA (2,401) (340) 31,400 Gerdau SA (Pref) 190,723 (11,819) 47,700 GP Investments Ltd BDR 90,128 2,974 53,700 Grendene SA 341,727 (25,699) 1,100 Grupo BTG Pactual (Unit) 16,608 (181) (131,560) Helbor Empreendimentos SA (412,737) (675) (21,600) Hypermarcas SA (175,668) (14,577) 2,100 Iguatemi Empresa de Shopping Centers SA 21,393 2,402 (23,200) International Meal Co Holdings SA (186,923) (14,960) 21,600 Itau Unibanco Holding SA (Pref) 342,096 27, ,536 Itausa - Investimentos Itau SA (Pref) 679, ,739 72,600 JBS SA 245,559 (11,074) (69,000) JHSF Participacoes SA (102,701) 13,978 13,900 JSL SA 75, ,651 Klabin SA (Right) ,700 Klabin SA (Pref) 715, ,453 38,000 Laep Investments Ltd BDR 4, (112) Latam Airlines Group SA BDR (1,682) (45) 36,875 Lojas Americanas SA (Pref) 222,828 6,800 (1,900) Lojas Renner SA (58,075) (533) 55,000 Magazine Luiza SA 204,902 32,052 (256,300) Magnesita Refratarios SA (524,250) 30,880 46,900 Mahle-Metal Leve SA Industria e Comercio 476,733 (20,914) (184,500) Marcopolo SA (Pref) (389,719) (59,708) 1,500 Marfrig Global Foods SA 3, (400) Metalurgica Gerdau SA (Pref) (2,961) 75 (59,700) Mills Estruturas e Servicos de Engenharia SA (691,445) (43,568) (22,114) Multiplan Empreendimentos Imobiliarios SA (478,940) (5,033) 15,900 Multiplus SA 235,666 9,907 (34,800) Natura Cosmeticos SA (619,545) 6,462 (21,400) Odontoprev SA (91,455) 2, ,000 Oi SA 359,140 (48,289) 221,100 Oi SA (Pref) 190,162 (63,072) (949,500) PDG Realty SA Empreendimentos e Participacoes (668,543) 33,067 44,900 Petroleo Brasileiro SA (Pref) 342,753 (21,988) 37,200 Porto Seguro SA 528,989 29,517 (800) Profarma Distribuidora de Produtos Farmaceuticos SA (7,590) (958) (372) Profarma Distribuidora de Produtos Farmaceuticos SA (Right) (51) (14) (21,300) Prumo Logistica SA (12,245) ,300 Qualicorp SA 213,222 25,518 63,600 Raia Drogasil SA 545,872 53, ,275 Randon Participacoes SA (Pref) 704,403 29,508 (77,500) Refinaria De Petroleos (Pref) (8,289) 784 6,051 Refinaria de Petroleos de Manguinhos SA 647 (179) (113,200) Rossi Residencial SA (83,740) (8,886) 21,100 Saraiva SA Livreiros Editores (Pref) 176,492 3,230 26,700 Sonae Sierra Brasil SA 213,100 (1,176) (14,400) Souza Cruz SA (151,444) (20,914) (1,200) Sul America SA (Unit) (9,241) ,900 Suzano Papel e Celulose SA 'A' (Pref) 234,350 (6,148) 6,400 T4F Entretenimento SA 13,519 (1,335) (39,279) Technos SA (201,121) 31, ,600 Tecnisa SA 399,925 16,854 (26,900) Tegma Gestao Logistica (221,290) (11,528) The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 29

32 BlackRock Americas Diversified Equity Absolute Return Fund continued Contracts For Difference as at 31 May 2014 Holding Commitment Holding Commitment Brazil continued 314 Telecomun Brasileiras SA (Pref) ,800 Telefonica Brasil SA (Pref) 36,650 (858) 9,200 Tereos Internacional SA 8,200 (49) (66,000) Tim Participacoes SA (357,059) (16,661) 40,900 Totvs SA 723,223 88,530 (48,100) Tractebel Energia SA (729,645) (84,504) (1,400) Unicasa Industria De Moveis (2,408) 81 (51,400) Usinas Siderurgicas de Minas Gerais SA 'A' (Pref) (182,328) 9,994 29,200 Vale SA (Pref) 337, ,000 Valid Solucoes e Servicos de Seguranca em Meios de Pagamento e Identificacao SA 486, ,199 (505,800) Vanguarda Agro SA (662,679) (31,585) (2,200) Viver Incorporadora e Construtora SA (137) 22 42,710 WEG SA 502,280 35,571 16,600 Wilson Sons Ltd BDR 247,816 26, ,723 84,771 Canada 30,835 Advantage Oil & Gas Ltd 184,476 51,709 76,503 Aecon Group Inc 1,192,539 37,281 (26,164) AGF Management Ltd 'B' (312,820) (36,913) 38,600 Agnico Eagle Mines Ltd 1,150,385 (33,391) (12,760) Agrium Inc (1,145,671) 24,467 68,911 Aimia Inc 1,234, , ,735 Alacer Gold Corp 236,707 (74,120) 8,823 Alamos Gold Inc 73,037 (15,706) (40,400) Alaris Royalty Corp (1,020,055) 68,890 (148,803) Algonquin Power & Utilities Corp (1,108,341) (93,546) 43,500 Alimentation Couche Tard Inc 'B' 1,170, ,710 (7,600) Allied Properties Real Estate Investment Trust (Reit) (245,977) 2,046 (26,402) AltaGas Ltd (1,177,965) (126,586) (18,700) ARC Resources Ltd (538,866) 15,913 (50,194) Argonaut Gold Inc (166,573) 87,593 (81,637) Artis Real Estate Investment Trust (Reit) (1,185,272) (32,022) 24,756 Atco Ltd/Canada 'I' 1,179,835 18,136 (26,400) Athabasca Oil Corp (182,765) (7,003) (67,800) ATS Automation Tooling Systems Inc (927,500) (51,467) (80,719) AuRico Gold Inc (280,522) 114,863 (52,000) Avigilon Corp (1,015,265) 345, ,736 B2Gold Corp 540,709 (124,245) (3,450) Badger Daylighting Ltd (112,297) (6,973) 17,150 Bank of Montreal 1,201,986 40,133 (18,350) Bank of Nova Scotia (1,169,711) (97,274) 120,836 Bankers Petroleum Ltd 725, ,241 (6,200) Barrick Gold Corp (99,447) (1,184) 27,350 Baytex Energy Corp 1,143,365 88,506 17,000 BCE Inc 775,562 34,475 (45,219) Bell Aliant Inc (1,193,001) (92,972) 74,650 Bellatrix Exploration Ltd 650,297 67,478 31,150 Birchcliff Energy Ltd 385, ,723 39,234 Black Diamond Group Ltd 1,204, ,373 (59,879) BlackPearl Resources Inc (124,748) 8,130 1,920 Boardwalk Real Estate Investment Trust (Reit) 114,496 13,001 59,901 Bombardier Inc 'B' 209,278 9,347 (42,231) Bonavista Energy Corp (619,372) (20,508) 15,450 Bonterra Energy Corp 813,945 38,632 33,382 Brookfield Asset Management Inc 'A' 1,441,845 98,796 46,350 Brookfield Property Partners LP 931,871 48,776 Canada continued 32,300 Brookfield Renewable Energy Partners LP/CA 931,662 (7,784) (2,550) BRP Inc/CA (68,945) (1,140) 800 CAE Inc 10,907 (27) (12,950) Calfrac Well Services Ltd (440,501) (13,423) (48,364) Calloway Real Estate Investment Trust (Reit) (1,196,617) (79,299) (62,222) Cameco Corp (1,244,669) 210,328 52,100 Canaccord Genuity Group Inc 503, ,988 2,150 Canadian Apartment Properties (Reit) 44,475 (1,356) (29,650) Canadian Energy Services & Technology Corp (878,458) (47,867) 7,200 Canadian Imperial Bank of Commerce/Canada 640,885 19,854 (13,777) Canadian National Railway Co (830,963) (58,096) 3,750 Canadian Natural Resources Ltd 151, (58,850) Canadian Oil Sands Ltd (1,232,552) 278 (3) Canadian Pacific Railway Ltd (501) (40) (4,450) Canadian Real Estate Investment Trust (188,247) (4,277) 12,150 Canadian Tire Corp Ltd 'A' 1,165,831 62,724 22,864 Canadian Utilities Ltd 'A' 825,785 14,794 (8,800) Canadian Western Bank (300,310) (893) (124,640) Canexus Corp (580,229) (25,534) (963) Canfor Corp (21,261) 3,627 (11,938) Capital Power Corp (286,675) (19,603) 102,080 Capstone Mining Corp 245,602 5,262 6,300 Cardina Energy Ltd 96,289 4,306 (5,350) Catamaran Corp (232,879) 9,850 12,428 CCL Industries Inc 'B' 1,202, ,386 5,600 Celestica Inc 66,541 5,967 (40,255) Cenovus Energy Inc (1,180,413) (7,816) 58,845 Centerra Gold Inc 249,527 (47,737) (23,750) CGI Group Inc 'A' (799,548) (28,811) 22,973 Chartwell Retirement Residences (Reit) 225,960 14,996 2,200 Chemtrade Logistics Income Fund 40,561 (546) (25,954) China Gold International Resources Corp Ltd (65,316) 6,093 23,688 CI Financial Corp 745,927 9,089 (5,200) Cineplex Inc (193,562) 1,482 9,000 Cogeco Cable Inc 520,603 24,198 (3,900) Cominar Real Estate Investment Trust (Reit) (68,056) (630) 5,200 Constellation Software Inc/Canada 1,184,189 (33,464) (50,586) Corus Entertainment Inc 'B' (1,158,330) (45,342) 72,900 Cott Corp 504,010 (80,611) 20,250 Crescent Point Energy Corp 820,230 (2,024) (32,440) Crew Energy Inc (311,601) (69,461) (96,892) Crombie Real Estate Investment Trust (Reit) (1,183,461) (22,466) 11,368 DeeThree Exploration Ltd 109,404 15,983 (1,800) Descartes Systems Group Inc/The (23,844) 1,600 (39,000) DH Corp (1,179,923) (113,729) (5,450) Dollarama Inc (456,377) (20,375) 91,156 Dominion Diamond Corp 1,177,264 (49,078) 300 Dorel Industries Inc 'B' 11, (400) Dream Office (Reit) (10,767) 42 (121,700) Dream Office (Reit) (1,090,454) (79,352) (27,220) Dream Unlimited Corp 'A' (353,549) 37,350 10,200 Dundee Corp 'A' 150,913 (2,490) (81,233) Eldorado Gold Corp (460,530) 97,853 (27,358) Emera Inc (856,703) (41,245) (19,400) Empire Co Ltd 'A' (1,175,481) 26,645 (1,650) Enbridge Inc (77,694) (170) 30 BlackRock Strategic Funds (BSF)

33 BlackRock Americas Diversified Equity Absolute Return Fund continued Contracts For Difference as at 31 May 2014 Holding Commitment Holding Commitment Canada continued (47,183) Enbridge Income Fund Holdings Inc (1,190,014) (98,763) 51,550 Encana Corp 1,197,986 61,748 80,499 Enerflex Ltd 1,222,178 37,008 55,187 Enerplus Corp 1,237, ,241 (10,779) Ensign Energy Services Inc (159,181) 3,668 1,900 Extendicare Inc 12,873 1,184 1,450 Finning International Inc 39, (70,305) First Capital Realty Inc (1,207,395) (81,698) (44,420) First Majestic Silver Corp (373,442) 48,918 (55,000) First Quantum Minerals Ltd (1,142,284) (177,558) 20,898 FirstService Corp/Canada 1,035,460 35,586 (13,973) Fortis Inc/Canada (416,176) (28,202) 5,000 Fortuna Silver Mines Inc 19,220 (1,979) 7,250 Freehold Royalties Ltd 173,965 26,225 33,110 Genworth MI Canada Inc 1,176,614 32,589 2,250 George Weston Ltd 163,876 (5,150) 40,408 Gibson Energy Inc 1,173, ,960 11,869 Gildan Activewear Inc 648,703 11,564 (2,850) Goldcorp Inc (65,864) 6, ,650 Gran Tierra Energy Inc 1,184,490 56,366 32,100 Granite Real Estate Investment Trust (Reit) 1,171,792 39,699 (6,974) Great-West Lifeco Inc (185,279) 5,782 (3,850) H&R Real Estate Investment Trust (Reit) (82,515) (2,151) (2,050) Home Capital Group Inc (92,239) (4,994) (124,400) HudBay Minerals Inc (1,113,499) (149,504) (73,450) Hudson's Bay Co (1,166,615) 21,129 51,010 IAMGOLD Corp 155,644 (33,938) (11,000) IGM Financial Inc (524,548) 5,997 (24,703) Imperial Oil Ltd (1,213,061) (82,480) (22,150) Industrial Alliance Insurance & Financial Services Inc (847,368) 48,330 (7,100) Intact Financial Corp (469,799) (19,345) 43,600 Intertape Polymer Group Inc 504,406 (3,179) (69,550) Ithaca Energy Inc (157,077) 21,413 54,763 Jean Coutu Group PJC Inc/The 'A' 1,191, ,193 68,221 Kelt Exploration Ltd 817,545 61,825 13,681 Keyera Corp 923, ,934 (22,950) Laurentian Bank of Canada (1,012,736) (66,622) 64,700 Legacy Oil + Gas Inc 502, ,995 (38,892) Lightstream Resources Ltd (277,493) (83,480) 21,758 Linamar Corp 1,208, ,642 (12,950) Loblaw Cos Ltd (547,223) (8,236) (42,038) Lundin Mining Corp (223,598) (35,886) 5,900 MacDonald Dettwiler & Associates Ltd 479,538 29,203 12,100 Magna International Inc 1,229,297 59,510 (37,409) Manitoba Telecom Services Inc (1,109,373) (87,206) (22,000) Manulife Financial Corp (402,563) 23,129 (75,869) Maple Leaf Foods Inc (1,337,219) (213,918) 500 Martinrea International Inc 5, (35,400) MEG Energy Corp (1,211,980) (121,199) (7,350) Methanex Corp (424,481) 27,805 (7,338) Mullen Group Ltd (195,017) (8,647) (2,150) National Bank Of Canada (89,762) (4,677) 83,566 Nevsun Resources Ltd 280,787 (23,007) (13,900) Newalta Corp (255,628) (2,292) (44,450) Norbord Inc (1,127,230) 66,872 36,875 North West Co Inc/The 814,119 (40,770) 47,184 Northern Property Real Estate Investment Trust (Reit) 1,187,429 (6,757) 16,741 Northland Power Inc 275,467 24,136 (210,612) Novagold Resources Inc (630,982) 216,368 (61,050) NuVista Energy Ltd (617,366) (136,037) 3,100 Onex Corp 190,978 13,925 Canada continued 11,100 Open Text Corp 519,699 (32,949) 2,150 Pacific Rubiales Energy Corp 40,986 (1,291) 15,343 Pan American Silver Corp 188,393 (29,043) (1,510) Paramount Resources Ltd 'A' (79,342) (18,046) 19,850 Parkland Fuel Corp 391,767 5,170 29,947 Pason Systems Inc 821,003 41,693 15,948 Pembina Pipeline Corp 647,152 71,238 16,300 Pengrowth Energy Corp 103,828 3,695 (46,646) Penn West Petroleum Ltd (430,426) (36,993) (26,058) Poseidon Concepts Corp (6,486) (139) 32,343 Potash Corp of Saskatchewan Inc 1,171,122 (24,623) 44,860 Power Corp of Canada 1,207,928 (5,371) (29,582) Power Financial Corp (886,260) 43,189 5,550 Precision Drilling Corp 70,705 4,178 (18,650) Pretium Resources Inc (119,141) 11,076 15,650 Progressive Waste Solutions Ltd 405,677 10,638 (87,533) Reitmans Canada Ltd 'A' (518,033) (75,058) 23,150 RioCan Real Estate Investment Trust (Reit) 586,219 33,234 (19,300) Ritchie Bros Auctioneers Inc (444,249) (7,152) 3,208 Rogers Communications Inc 'B' 129,216 2,155 (115,382) RONA Inc (1,167,860) 37,429 1,950 Royal Bank of Canada 133,865 (1,369) (13,700) Russel Metals Inc (413,160) (48,337) 147,790 Sandvine Corp 502,715 70,764 (22,286) Saputo Inc (1,200,995) (85,106) 124,475 Savanna Energy Services Corp 946,643 95,513 (67,705) Secure Energy Services Inc (1,217,042) (89,805) 105,529 SEMAFO Inc 343,397 (74,511) (47,392) Shaw Communications Inc 'B' (1,176,499) (58,193) 2,200 Shawcor Ltd 110, (439) Silver Standard Resources Inc (2,857) 1,796 22,000 Silver Wheaton Corp 445,962 (53,492) 71,750 Silvercorp Metals Inc 116,078 (41,202) (25,679) SNC-Lavalin Group Inc (1,225,954) (123,951) 18,822 Stantec Inc 1,170,649 19,639 35,400 Sun Life Financial Inc 1,193,053 (34,380) (20,050) Suncor Energy Inc (767,955) 8,411 99,056 Superior Plus Corp 1,222, ,864 (47,425) Tahoe Resources Inc (972,720) 86,473 (300) Teck Resources Ltd 'B' (6,712) ,156 TELUS Corp 1,213,557 93,758 (32,200) Thomson Reuters Corp (1,119,639) (6,535) 4,650 Tim Hortons Inc 250,118 (5,142) 11,750 Tmx Group Ltd 621,511 61,861 (225,766) Torex Gold Resources Inc (251,822) (1,322) (14,450) Toromont Industries Ltd (353,791) 1,276 9,650 Toronto-Dominion Bank/The 477,607 16,831 (85,882) TransAlta Corp (1,032,357) (46,124) (13,400) TransCanada Corp (627,013) (20,505) 79,887 Transcontinental Inc 'A' 1,097,268 49,452 (5,200) TransForce Inc (112,839) (1,780) 1,750 TransGlobe Energy Corp 11,970 (1,243) (81,300) Trican Well Service Ltd (1,232,091) (255,898) (9,100) Trilogy Energy Corp (239,328) (17,294) 104,589 Trinidad Drilling Ltd 1,094,289 23,444 3,600 Valeant Pharmaceuticals International Inc 462,312 (10,267) (72,668) Veresen Inc (1,137,447) (104,343) 2,600 Vermilion Energy Inc 174,316 5,234 55,963 Vicwest Inc 523,106 (35,237) (4,509) Wajax Corp (143,816) 13,189 8,994 West Fraser Timber Co Ltd 413,800 (4,162) 28,250 Westjet Airlines Ltd 632,031 (14,510) (650) Westshore Terminals Investment Corp (20,103) 768 The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 31

34 BlackRock Americas Diversified Equity Absolute Return Fund continued Contracts For Difference as at 31 May 2014 Holding Commitment Holding Commitment Canada continued Mexico continued 75,114 Whitecap Resources Inc 1,038, ,856 (30,250) Wi-Lan Inc (94,810) (3,123) (34,921) WSP Global Inc (1,231,313) (134,575) 13,451 1,501,354 Chile 52,540 Aguas Andinas SA 'A' 33,269 (598) 1,743 Antarchile SA 23,655 (2,883) 192,230 Banco de Chile 25,949 (390) 5,527 CAP SA 80,726 (26,084) 6,226 Coca-Cola Embonor SA 'B' (Pref) 11,749 (5,585) 4,201 Colbun SA 1,064 (4) 94,672 Cruz Blanca Salud SA 81,592 19,770 6,093 Empresa Nacional de Electricidad SA/Chile 9, (10,926) Empresas COPEC SA (148,680) 1, Empresas Hites SA 174 (61) 348,287 Empresas Iansa SA 13,586 (5,653) 1,118,815 Enersis SA 366,409 (21,080) 18,439 Forus SA 75,643 (23,220) 19,917 Inversiones Aguas Metropolitanas SA 32, ,744 Norte Grande SA ,763 Parque Arauco SA 151,317 (40,629) 15,519 PAZ Corp SA 8, ,700 Ripley Corp SA 288,493 (43,407) 25,515 Salfacorp SA 22,777 (1,406) 78,315 Sigdo Koppers SA 125,185 (1,881) 227,939 Sonda SA 544,382 (60,494) 2,010 Vina Concha y Toro SA 4, ,751,967 (210,358) Colombia 411 Almacenes Exito SA 6,715 1,313 8,055 Avianca Holdings SA (Pref) 15,870 (3,475) 40,154 Cementos Argos SA 226,148 45,170 7,630 Cemex Latam Holdings SA 69,990 8,337 1,670 Grupo Argos SA 18, Grupo Aval Acciones y Valores ,330 Grupo De Inv Suramericana SA (Pref) 108,314 10,782 3,124 Grupo de Inversiones Suramericana SA 62,861 4,151 8,681 Grupo Nutresa SA 124,510 13, ,422 80,846 Mexico (251,300) Alfa SAB de CV 'A' (717,378) (10,141) (322,200) Alpek SA de CV (622,200) (27,392) 68,200 Alsea SAB de CV 234,824 1,821 (357,900) America Movil SAB de CV 'L' (351,969) 7, ,785 Arca Continental SAB de CV 720,012 18,390 (917,910) Axtel SAB de CV 'CPO' (326,827) (2,945) (122,379) Banregio Grupo Financiero SAB de CV (707,455) (22,131) 59,800 Bolsa Mexicana de Valores SAB de CV 125,986 3, ,412 Cemex SAB de CV 'CPO' 324,054 15, ,200 Cia Minera Autlan SAB de CV 'B' 296,213 49,848 (16,600) Coca-Cola Femsa SAB de CV 'L' (194,389) (2,014) (301,100) Compartamos SAB de CV (530,892) (8,290) (208,200) Consorcio ARA SAB de CV (96,791) (6,098) 53,500 Controladora Comercial Mexicana SAB de CV 205,255 (4,966) (475,534) Corp GEO SAB de CV 'B'* 60,058 (274,200) Desarrolladora Homex SAB de CV (67,148) (459) 204,098 Fibra Uno Administracion SA de CV (Reit) 635,151 (17,992) 27,900 Fomento Economico Mexicano SAB de CV 267,891 (3,452) (207,700) Genomma Lab Internacional SAB de CV 'B' (535,754) (1,131) 69,500 Gruma SAB de CV 'B' 710, ,854 (2,200) Grupo Aeromexico SAB de CV (3,715) 11 56,700 Grupo Aeroportuario del Centro Norte Sab de CV 217,311 29,181 57,907 Grupo Aeroportuario del Pacifico SAB de CV 'B' 358,926 5,182 27,659 Grupo Aeroportuario del Sureste SAB de CV 'B' 357,737 28,073 (104,987) Grupo Bimbo SAB de CV 'A' (304,518) (12,215) 100,700 Grupo Carso SAB de CV 'A1' 522,557 12,060 (191,000) Grupo Comercial Chedraui SA de CV (637,303) (56,111) (35) Grupo Elektra SAB de CV (915) 5 (220,700) Grupo Famsa SAB de CV 'A' (297,683) (8,989) (32,000) Grupo Financiero Banorte SAB de CV 'O' (235,364) (13,888) 216,000 Grupo Financiero Inbursa SAB de CV 'O' 606, ,421 (234,191) Grupo Herdez SAB de CV (711,868) (52,353) (138,000) Grupo Mexico SAB de CV 'B' (459,387) (6,969) 44,007 Grupo Simec SAB de CV 'B' 196,786 24,701 (54,400) Grupo Televisa SAB 'CPO' (373,221) (15,388) (79,853) Industrias CH SAB de CV 'B' (447,961) (7,950) (3,905) Industrias Penoles SAB de CV (96,341) (2,218) 258,400 Kimberly-Clark de Mexico SAB de CV 'A' 706,308 28, ,292 Megacable Holdings SAB de CV 'CPO' 698,254 19, ,000 Mexichem SAB de CV 417,264 (6,804) (218,685) Minera Frisco SAB de CV 'A1' (425,022) (38,735) 40,500 OHL Mexico SAB de CV 114,354 4,727 (115,021) Organizacion Soriana SAB de CV 'B' (352,847) (13,411) 13,358 Promotora y Operadora de Infraestructura SAB de CV 185, ,014 Sare Holding SAB de CV 'B' 1, (505,182) TV Azteca SAB de CV 'CPO' (301,228) (13,958) (155,600) Urbi Desarrollos Urbanos SAB de CV (62) 18, ,700 Wal-Mart de Mexico SAB de CV 260, (634,956) 217,480 Peru 523 Grana y Montero SA 1,736 (721) 300,587 Minsur SA 190,176 49,616 59,069 Volcan Cia Minera SAA 'B' 23, ,976 49,338 United States 9, Flowers.com Inc 'A' 51,620 1,378 16,514 1st Source Corp 507,475 (15,523) 3,114 2U Inc 44,343 3,456 3,579 3D Systems Corp 185,213 1, A Schulman Inc 16,786 (518) (1,312) AAON Inc (41,066) (4,323) (1,679) AAR Corp (40,884) 4,693 1,268 AAR Corp 30,876 (7,747) 12,652 Aaron's Inc 416,630 22,978 (1,005) Aaron's Inc (33,095) (292) (5,734) Abaxis Inc (240,885) (14,588) 6,903 AbbVie Inc 373,314 9,776 (291) Abercrombie & Fitch Co 'A' (10,918) (134) (7,108) ABIOMED Inc (159,219) 47,450 8,598 ABM Industries Inc 235,671 (8,241) * Investments which are less than 0.5 have been rounded down to zero. 32 BlackRock Strategic Funds (BSF)

35 BlackRock Americas Diversified Equity Absolute Return Fund continued Contracts For Difference as at 31 May 2014 Holding Commitment Holding Commitment United States continued 5,780 Abraxas Petroleum Corp 29,536 3,545 (2,555) Acacia Research Corp (41,774) (4,964) (13,141) Acadia Healthcare Co Inc (563,880) 20,422 (4,928) ACADIA Pharmaceuticals Inc (103,389) (6,308) (27,198) Acadia Realty Trust (Reit) (748,489) (39,169) (479) Accelerate Diagnostics Inc (11,831) (3,784) (4,875) Accenture Plc 'A' (392,584) (5,107) 29,329 Access National Corp 443,161 (54,552) (1,766) Acco Brands Corp (10,737) (270) 443 Accretive Health Inc 3, (11,086) Accretive Health Inc (81,482) 14,744 (7,959) Accuray Inc (70,119) 7,720 (2,377) Accuride Corp (13,097) (2,014) 16 ACE Ltd 1, (1,090) AcelRx Pharmaceuticals Inc (9,908) 3,063 5,312 Achaogen Inc 75,218 5,688 (4,677) ACI Worldwide Inc (253,914) 37, Acorda Therapeutics Inc 23,649 1,283 (12,374) Acorn Energy Inc (18,314) 24,748 (592) Actavis Plc (126,380) (4,695) (11,688) Activision Blizzard Inc (240,188) (2,073) 21,643 Actuant Corp 'A' 769,625 33,328 (2,265) Acuity Brands Inc (282,038) (9,183) 16,918 Acxiom Corp 384,715 23, Adams Resources & Energy Inc 23,052 (2,732) (305) Addus HomeCare Corp (7,079) Adept Technology Inc 11,446 (5,758) 186 Adt Corp/The 6, (15,315) ADTRAN Inc (340,606) 33, Advance Auto Parts Inc 86, (3,351) Advanced Emissions Solutions Inc (76,570) 12, Advanced Energy Industries Inc 6,001 (1,673) (9,497) Advanced Micro Devices Inc (38,178) (783) (16,050) Advent Software Inc (483,908) (22,944) (6,672) Advisory Board Co/The (327,795) 104,067 (13,910) AECOM Technology Corp (447,763) (3,650) (4,721) Aegion Corp (114,248) (2,311) (881) AEP Industries Inc (28,218) 6,038 10,963 Aerohive Networks Inc 107,437 (4,997) (15,999) Aeropostale Inc (63,996) 50,397 3,180 Aerovironment Inc 102,587 (15,919) (36,376) AES Corp/VA (502,353) 11,513 1,767 Aetna Inc 136,448 5,008 5,754 Affiliated Managers Group Inc 1,085,492 (286) (4,024) Affymetrix Inc (33,560) (4,024) 4,631 AGCO Corp 250, (25,953) Agilysys Inc (380,471) (5,530) (20,662) AGL Resources Inc (1,095,912) (46,832) 1,481 Agnico Eagle Mines Ltd 44, ,290 AH Belo Corp 'A' 50,107 (1,845) 30,617 Air Lease Corp 1,252,235 87,918 (2,480) Air Methods Corp (120,950) 12,040 (1,714) Air Products & Chemicals Inc (205,080) (4,576) (1,509) Air Transport Services Group Inc (13,943) (808) 23,184 Aircastle Ltd 384,623 (4,572) (6,554) Airgas Inc (694,921) (918) (25,921) AK Steel Holding Corp (159,933) 19,157 3,800 Akamai Technologies Inc 206,834 4,241 (379) Akorn Inc (10,745) (584) 239 Alamo Group Inc 12,442 (1,467) 711 Alaska Air Group Inc 69,870 1,863 (6,112) Albany International Corp 'A' (232,256) (10,453) (25,054) Alcoa Inc (337,978) (4,446) (1,535) Alere Inc (55,199) (476) 325 Alere Inc 11,687 (351) 562 Alexander & Baldwin Inc 21,766 (101) United States continued (17,924) Alexander & Baldwin Inc (694,197) 1, Alexander's Inc (Reit) 59,565 3,215 1,289 Alexion Pharmaceuticals Inc 213,652 10,364 (894) Alico Inc (33,382) 143 1,691 Align Technology Inc 92,734 8,709 (4,155) Alimera Sciences Inc (24,618) 2,860 (680) Alkermes Plc (31,110) (1,176) (44) Alleghany Corp (18,565) 11 (17,712) Allegheny Technologies Inc (723,004) (6,322) (1,618) Allegiant Travel Co (187,478) 1,553 2,508 Allegion Plc 133,538 12, Allergan Inc/United States 83,429 (1,261) 11,636 ALLETE Inc 576,098 (7,716) (1,262) Alliance Data Systems Corp (321,305) (22,023) 2,020 Alliance Fiber Optic Products Inc 44,137 18,887 (100) Alliance HealthCare Services Inc (2,900) 14 3,537 Alliant Energy Corp 204,615 (115) (5,676) Allied Nevada Gold Corp (15,893) 15,268 3,026 Allied World Assurance Co Holdings AG 112, ,144 Allison Transmission Holdings Inc 190,648 5,516 6,712 Allstate Corp/The 392,316 5,974 1,710 Ally Financial Inc 40,442 (1,112) (2,193) Almost Family Inc (46,601) 4,658 (3,894) Alnylam Pharmaceuticals Inc (233,562) (13,163) 732 Alon USA Energy Inc 10, ,965 Alpha & Omega Semiconductor Ltd 40,713 3,376 (19,360) Alpha Natural Resources Inc (68,147) 18,131 48,531 Alphatec Holdings Inc 72,311 (1,470) 30,031 Altera Corp 997,930 (12,111) (2,458) Altisource Portfolio Solutions SA (271,486) (3,454) (437) Altisource Residential Corp (Reit) (12,039) 1,325 (1,096) Altria Group Inc (45,374) (1,480) 675 Amazon.com Inc 209,540 6,271 (11,022) Ambac Financial Group Inc (313,135) 6, Ambarella Inc 26,165 (1,019) 50,296 Ambev SA ADR 360,622 (19,406) 7,752 Ambit Biosciences Corp 55,582 (16,345) 3,979 AMC Entertainment Holdings Inc 'A' 90,284 (5,262) (621) AMC Networks Inc 'A' (38,496) 1,521 6,649 Amdocs Ltd 320,083 10,239 (23,191) Amedisys Inc (339,284) 15, AMERCO 186,087 11,854 (6,531) Ameren Corp (255,036) 11,102 (10,205) America's Car-Mart Inc/TX (367,686) 8, American Airlines Group Inc 24,833 1,182 (1,350) American Axle & Manufacturing Holdings Inc (24,840) 65 1,046 American Campus Communities Inc (Reit) 40,627 (213) (15,614) American Capital Agency Corp (Reit) (367,085) (3,219) (6,880) American Capital Ltd (101,618) ,066 American Eagle Energy Corp 97,681 (13,236) (12,796) American Eagle Outfitters Inc (138,837) 11,376 15,297 American Electric Power Co Inc 808,905 13,155 (209) American Express Co (19,057) (559) 499 American Financial Group Inc/OH 29, ,745 American Homes 4 Rent 'A' (Reit) 48,312 4,088 1,338 American International Group Inc 72,198 1,472 (606) American National Insurance Co (68,472) (1,037) (3,293) American Public Education Inc (115,156) (106) 27,536 American States Water Co 823,877 8,967 1,408 American Superconductor Corp 1,985 (94) (13,381) American Superconductor Corp (18,867) 12,043 1,046 American Tower Corp 93, The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 33

36 BlackRock Americas Diversified Equity Absolute Return Fund continued Contracts For Difference as at 31 May 2014 Holding Commitment Holding Commitment United States continued (3,358) American Vanguard Corp (50,404) 4,509 2,461 American Water Works Co Inc 118,448 2,290 (188) American Woodmark Corp (5,260) 887 1,296 Ameriprise Financial Inc 146,215 5,949 (1,023) AmerisourceBergen Corp (74,996) (262) 8,032 AmerisourceBergen Corp 588,826 46, AMETEK Inc 47,478 (37) 3,947 Amgen Inc 455,050 19,735 (5,023) Amkor Technology Inc (50,431) (739) 40,780 Amkor Technology Inc 409, ,828 9,392 AMN Healthcare Services Inc 105,378 (27,894) 5,097 Ampco-Pittsburgh Corp 109,484 14,475 (1,496) Ampio Pharmaceuticals Inc (11,744) (1,616) (3,065) Amtech Systems Inc (30,190) 6, Amtrust Financial Services Inc 34,857 (920) (385) Amtrust Financial Services Inc (16,817) (176) 5,272 Anadarko Petroleum Corp 545,441 18,834 (3,302) Analog Devices Inc (172,860) (5,184) 2,127 Andersons Inc/The 106,988 5,065 (392) Andersons Inc/The (19,718) 2,882 11,008 AngioDynamics Inc 157,304 (17,172) 2,165 Anika Therapeutics Inc 103,422 12, Anixter International Inc 95, (12,824) Annaly Capital Management Inc (Reit) (149,656) 389 (2,953) Annie's Inc (91,986) 24,687 2,336 ANSYS Inc 171,112 (5,865) (63,319) Antares Pharma Inc (194,389) 75, Antero Resources Corp 47, (945) Antero Resources Corp (58,458) 398 (1,679) Anworth Mortgage Asset Corp (Reit) (8,983) (210) 3,731 AOL Inc 136,144 (1,901) (2,451) Aon Plc (219,855) 109 (4,206) Apache Corp (390,191) (16,283) 1,145 Apartment Investment & Management Co 'A' (Reit) 35, ,175 Apco Oil and Gas International Inc 30,559 (1,875) 35,297 API Technologies Corp 96,008 1, Apogee Enterprises Inc 14,213 (962) 729 Apollo Education Group Inc 19,435 (4,090) 6,135 Apollo Residential Mortgage Inc (Reit) 101,835 (558) 242 Applied Industrial Technologies Inc 11,577 1 (22,288) Applied Materials Inc (450,440) (33,878) (5,328) Applied Micro Circuits Corp (48,538) 8,258 (935) Applied Optoelectronics Inc (19,831) 3,946 (553) Approach Resources Inc (10,772) 841 (9,110) Aptargroup Inc (605,542) (4,464) 2,586 Aqua America Inc 64, (881) Aratana Therapeutics Inc (11,902) (630) 10,407 Arbor Realty Trust Inc (Reit) 75,659 5,724 14,532 ARC Document Solutions Inc 90,534 (22,815) 213 ARC Group Worldwide Inc 2, (16,044) Arch Capital Group Ltd (915,631) (11,357) (40,508) Arch Coal Inc (143,803) 39,714 4,891 Archer-Daniels-Midland Co 218,628 5,722 11,365 Arcos Dorados Holdings Inc 'A' 101,149 (7,501) 4,101 Argan Inc 125,860 12,057 4,551 Argo Group International Holdings Ltd 219,904 5,545 (7,015) Argo Group International Holdings Ltd (338,965) (25,068) (4,244) ARIAD Pharmaceuticals Inc (27,119) 3,185 (3,021) ARMOUR Residential Inc (Reit) (13,051) (576) (2,143) Armstrong World Industries Inc (114,565) 2,258 7,509 ARRIS Group Inc 246,896 23,710 United States continued (38,407) Arrow Financial Corp (1,000,502) (6,427) 3,730 Artisan Partners Asset Management Inc 'A' 216,228 10,634 2,831 Aruba Networks Inc 52,713 (7,049) (811) Asbury Automotive Group Inc (52,455) (793) (743) Ascena Retail Group Inc (12,445) 190 1,413 Ascena Retail Group Inc 23,668 (975) 854 Ascent Capital Group Inc 'A' 53,110 (11,333) 17 Ashland Inc 1,752 8 (2,361) ASML Holding NV/NY Reg (202,562) (11,560) 15,496 Aspen Insurance Holdings Ltd 710,956 6,353 26,172 Aspen Technology Inc 1,135,865 (11,457) 2,809 Assurant Inc 191,209 3,034 5,359 Assured Guaranty Ltd 131, (5,978) Astec Industries Inc (241,989) 10,581 (10,686) Astoria Financial Corp (138,384) 13,392 (795) Astronics Corp (43,622) (566) (315) Astronics Corp 'B' (17,215) 3,005 1,668 Athlon Energy Inc 71,124 4,031 (4,777) Atlantic Tele-Network Inc (267,703) 45,814 (1,096) Atlas Air Worldwide Holdings Inc (40,892) (923) (6,503) Atmel Corp (54,560) (3,796) (4,111) AtriCure Inc (67,544) (2,814) 407 Atrion Corp 128,307 5,100 (246) Atwood Oceanics Inc (12,155) (122) 530 Audience Inc 6,652 (402) 9,250 AuRico Gold Inc 32,190 (6,666) (7,115) Autoliv Inc (751,842) (15,316) (3,103) AutoNation Inc (176,747) (1,606) (12,423) Auxilium Pharmaceuticals Inc (282,002) (29,554) 120 AV Homes Inc 1,993 (20) 649 Avago Technologies Ltd 45,190 (649) (672) AvalonBay Communities Inc (Reit) (94,544) (2,365) 5,487 Avery Dennison Corp 276,874 16,626 3,491 AVG Technologies NV 68,947 (1,571) (7,190) AVG Technologies NV (142,003) (4,521) 84,025 Aviat Networks Inc 88,226 (67,220) 8,717 Avid Technology Inc 64,767 5,405 (2,453) Avis Budget Group Inc (139,232) (4,146) (3,417) Avista Corp (106,542) 1,670 25,399 Avista Corp 791,941 51,560 (4,710) Avnet Inc (204,932) (5,753) 26,527 AVX Corp 353,605 10,467 (28,073) Aware Inc (161,139) 2,527 (1,084) Axcelis Technologies Inc (2,005) (216) 47,764 AXT Inc 106,991 (4,299) (4,404) AZZ Inc (195,009) (2,247) (2,071) B&G Foods Inc (70,849) (9,775) 2,387 B&G Foods Inc 81,659 4,795 1,050 B/E Aerospace Inc 99,761 (1,470) (4,048) Badger Meter Inc (200,821) 14, Baker Hughes Inc 26, (1,152) Balchem Corp (63,729) (1,454) 6,747 Balchem Corp 373,244 7,382 (2,569) Ball Corp (155,039) (454) 4,979 Ballantyne Strong Inc 21,161 (2,738) 681 Bally Technologies Inc 40,022 (99) 8,881 Banc of California Inc 96,403 (19,316) 4,354 BancFirst Corp 259,847 14,063 4,365 Banco de Chile ADR 353,390 18,854 29,538 Banco Latinoamericano de Comercio Exterior SA 795,458 13,292 (53,818) Banco Santander Brasil SA/Brazil ADR (362,733) (2,153) (245) Banco Santander Chile ADR (6,221) (96) (6,592) Bancolombia SA ADR (365,988) (1,538) 34 BlackRock Strategic Funds (BSF)

37 BlackRock Americas Diversified Equity Absolute Return Fund continued Contracts For Difference as at 31 May 2014 Holding Commitment Holding Commitment United States continued (21,173) Bancorp Inc/DE (333,051) 74,112 6,900 Bank Mutual Corp 41,538 (4,172) 10,718 Bank of America Corp 162,806 2,505 (8,161) Bank of Hawaii Corp (459,872) (10,467) (10,711) Bank of New York Mellon Corp/The (369,315) (8,890) (1,672) BankFinancial Corp (16,887) (451) 855 BankUnited Inc 27,933 1,120 1,485 Banner Corp 57,395 (3,267) (6,545) Barnes & Noble Inc (118,268) (10,781) 55 Barrett Business Services Inc 2, ,492 Barrick Gold Corp 56, (2,580) Basic Energy Services Inc (69,995) (2,619) (1,194) Bassett Furniture Industries Inc (16,489) 2,390 27,393 Baxter International Inc 2,034,752 (9,515) 163 Baytex Energy Corp 6, (25,330) Bazaarvoice Inc (167,685) 32,676 (10,812) BB+T Corp (412,045) (4,341) (3,380) BBCN Bancorp Inc (52,086) 5,662 (1,725) Beacon Roofing Supply Inc (59,806) 2,505 (2,564) Beazer Homes USA Inc (50,767) bebe stores inc 2,594 (1,689) 3,393 Becton Dickinson and Co 398,711 5, Bed Bath & Beyond Inc 17,255 (291) 6,356 Bel Fuse Inc 'B' 172,184 51,317 (2,599) Belden Inc (187,102) (9,304) 5,545 Belden Inc 399,185 8,859 (132) Bemis Co Inc (5,454) (16) 25,292 Benchmark Electronics Inc 594,615 (7,889) 853 Beneficial Mutual Bancorp Inc 11, (553) Berkshire Hills Bancorp Inc (12,603) 1,731 16,364 Berry Plastics Group Inc 388,318 6,516 1,959 Best Buy Co Inc 54,450 4,555 (35,617) BGC Partners Inc 'A' (251,456) 3,308 5,690 Big 5 Sporting Goods Corp 64,752 (20,427) (134) Big Lots Inc (5,603) (279) (229) Biglari Holdings Inc (97,096) 15, BIND Therapeutics Inc 8,285 (3,653) 175 Bio-Rad Laboratories Inc 'A' 21,130 (79) (7,408) Bio-Reference Labs Inc (200,090) (11,112) 2,442 Bioamber Inc 24,176 (9,646) (15,035) BioDelivery Sciences International Inc (148,095) (6,014) 28 Biogen Idec Inc 8, (3,472) BioMarin Pharmaceutical Inc (197,730) 1,701 (5,054) BioScrip Inc (39,522) (2,904) 4,157 BioSpecifics Technologies Corp 112,447 5,363 (928) BJ's Restaurants Inc (29,009) 1,953 2,989 Black Box Corp 73,739 10,322 (29,387) Black Diamond Inc (318,261) (14,737) (754) Blackbaud Inc (26,398) (1,066) 22,120 Blackstone Mortgage Trust Inc 'A' (Reit) 658,070 25,344 (889) Bloomin' Brands Inc (18,518) 76 4,398 Bloomin' Brands Inc 91,610 (1,205) 7,312 Blount International Inc 89,645 1,328 7,926 Blucora Inc 153,923 (4,597) 1,837 Blyth Inc 16,239 (1,047) (5,534) BNC Bancorp (93,801) 4,150 (3,055) Bob Evans Farms Inc/DE (137,597) 4,481 5,063 Boeing Co/The 682,239 17,923 3,611 Boise Cascade Co 93,886 (6,702) (5,068) BOK Financial Corp (319,436) 20, Bolt Technology Corp 1, (5,934) Bon-Ton Stores Inc/The (62,604) (4,391) 2,163 Bonanza Creek Energy Inc 115,353 15,163 9,182 Booz Allen Hamilton Holding Corp 203,565 (18,574) 5,543 Borderfree Inc 83,145 4,595 (2,849) BorgWarner Inc (179,658) (11,396) United States continued (984) Boston Beer Co Inc/The 'A' (215,014) 21,489 (134) Boston Private Financial Holdings Inc (1,699) 201 (1,952) Boston Properties Inc (Reit) (234,357) (1,312) 2,122 Boston Scientific Corp 27, (7,948) Bottomline Technologies (DE) Inc (231,446) 46,056 (8,182) Boyd Gaming Corp (90,329) 12,187 4,601 Brady Corp 'A' 126,666 3,762 1,564 Brandywine Realty Trust (Reit) 23, ,781 Braskem SA ADR 312,245 (4,746) 10,053 Bravo Brio Restaurant Group Inc 159,943 6,711 (10,567) BRF SA ADR (229,093) 18,281 (439) Bridge Bancorp Inc (10,751) 740 (392) Bridge Capital Holdings (8,847) (121) (7,985) Bridgepoint Education Inc (105,083) 21,390 (4,293) Briggs & Stratton Corp (89,509) 4, Briggs & Stratton Corp 2, (7,305) Bright Horizons Family Solutions Inc (285,187) 4, Brink's Co/The 3, ,825 Bristol-Myers Squibb Co 337,906 5,006 3,651 Bristow Group Inc 279,192 10,290 6,965 Brixmor Property Group Inc (Reit) 152,046 (2,043) 8,519 Broadridge Financial Solutions Inc 350,983 23,086 (1,754) BroadSoft Inc (38,167) 11,945 3,666 Brookdale Senior Living Inc 121,161 3,850 17,509 Brookfield Office Properties Inc 352, ,902 Brown & Brown Inc 330,331 5,662 1,312 Brown Shoe Co Inc 36,880 3,542 (4,968) Brown Shoe Co Inc (139,650) (588) 101 Brown-Forman Corp 'B' 9, ,242 Bruker Corp 47, ,400 Brunswick Corp/DE 60,914 4,284 (11,661) BSB Bancorp Inc/MA (209,315) (7,113) (8,779) Buckle Inc/The (393,211) 9,395 1,435 Build-A-Bear Workshop Inc 20,033 6,974 5,585 Builders FirstSource Inc 40,212 (7,093) 7,157 Bunge Ltd 555,240 9,161 (11,853) Burger King Worldwide Inc (301,659) (2,208) (621) Burlington Stores Inc (17,556) 349 1,427 C&F Financial Corp 48,875 (845) (2,624) C&J Energy Services Inc (81,265) (872) (4,187) Cabela's Inc (254,444) 13,022 (1,272) Cablevision Systems Corp 'A' (22,247) (176) 204 Cabot Corp 11, (68) Cabot Microelectronics Corp (2,942) 158 3,003 Cabot Oil & Gas Corp 109, (219) CACI International Inc 'A' (15,571) (160) (1,240) Cadence Design Systems Inc (20,882) (1,553) (23,580) Cadiz Inc (200,902) (14,170) 10,612 Caesars Acquisition Co 'A' 131,483 (35,656) (12,724) Caesars Entertainment Corp (233,485) 8,835 (916) Caesarstone Sdot-Yam Ltd (41,687) 2,894 1,166 Cal Dive International Inc 1,504 (152) 577 Cal-Maine Foods Inc 39,525 2,028 27,301 Calamos Asset Management Inc 'A' 338,805 (8,736) (169) California First National Bancorp (2,577) (125) 3,048 California Water Service Group 66, ,298 Calix Inc 84,341 (4,105) 3,667 Callidus Software Inc 39,090 (5,318) 12,862 Callon Petroleum Co 135,437 44, Calpine Corp 7, (13,350) Camden National Corp (494,751) 30,311 1,020 Camden Property Trust (Reit) 71, Cameron International Corp 4, (39,175) Campbell Soup Co (1,800,483) (50,319) (228) Cantel Medical Corp (7,925) (811) 5,677 Cape Bancorp Inc 59,892 (227) The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 35

38 BlackRock Americas Diversified Equity Absolute Return Fund continued Contracts For Difference as at 31 May 2014 Holding Commitment Holding Commitment United States continued 979 Capella Educations Co 55,891 (5,086) 4,103 Capital Southwest Corp 147,093 2, Capitol Federal Financial Inc 8,102 (298) 15,063 Capstead Mortgage Corp (Reit) 197,325 4,519 (853) CARBO Ceramics Inc (115,795) (1,655) (328) Cardinal Financial Corp (5,802) ,881 Cardinal Health Inc 1,191,967 76,635 5,772 Cardtronics Inc 169,408 (76,306) 1,800 Care.Com Inc 19,584 (16,506) (1,361) CareFusion Corp (58,686) (167) (14,269) CarMax Inc (641,820) (10,857) (693) Carnival Corp (27,574) (866) 5,393 Carrizo Oil & Gas Inc 311,931 15,636 (184) Carrizo Oil & Gas Inc (10,643) (205) 418 Carter's Inc 30,251 (424) 15,464 Cascade Bancorp 66,959 (70,112) (2,691) Casella Waste Systems Inc 'A' (14,774) (1,034) (3,589) Cash America International Inc (170,406) (9,836) (6,996) Cass Information Systems Inc (353,788) 32,252 8,988 Catamaran Corp 390,708 8,563 (952) Caterpillar Inc (97,361) 2,326 19,531 Cathay General Bancorp 472,455 (2,577) 271 Cato Corp/The 7, ,504 Cavco Industries Inc 192,207 (13,412) 1,477 CBL & Associates Properties Inc (Reit) 27, (44) CBOE Holdings Inc (2,232) (73) 375 CBRE Group Inc 'A' 11, ,631 CBS Corp 'B' 754,576 12,245 2,169 CBS Outdoor Americas Inc 70,341 (325) (2,946) CBS Outdoor Americas Inc (95,539) (921) (5,125) CDI Corp (71,750) 15,202 (7,935) Ceco Environmental Corp (115,296) 29,121 17,327 Cedar Realty Trust Inc (Reit) 107,081 1,386 (1,115) Celadon Group Inc (25,578) 1,079 8,543 Celanese Corp 'A' 531,545 32,805 3,254 Celgene Corp 493,957 9,599 (4,331) Celldex Therapeutics Inc (62,496) (1,776) 27,811 Cemex SAB de CV ADR 361,821 24,497 1,483 Cempra Inc 14,148 (2,405) 2,592 Centene Corp 192,586 12,364 96,304 CenterPoint Energy Inc 2,314,185 40,655 4,401 Centerstate Banks Inc 46,651 (1,188) (35,819) Central European Media Enterprises Ltd 'A' (104,233) 26,767 28,061 Central Garden and Pet Co 218,876 1,964 (34,775) Central Garden and Pet Co 'A' (276,114) ,151 Central Pacific Financial Corp 855,160 (46,957) (36,540) Century Aluminum Co (499,136) (23,146) 1,195 Century Bancorp Inc/MA 'A' 40,009 (1,219) 9,485 Century Casinos Inc 58,522 (7,873) (6,023) CenturyLink Inc (227,188) (17,945) 23,751 Cenveo Inc 74,103 (4,536) (5,453) Cepheid Inc (245,167) (16,023) (1,141) Cerner Corp (62,207) (4,393) (11,718) Cerus Corp (49,919) 20,741 (4,198) Ceva Inc (65,657) 5,520 (8,054) CH Robinson Worldwide Inc (481,065) (24,690) (2,415) ChannelAdvisor Corp (51,657) 55,916 (11,235) Charles Schwab Corp/The (287,841) (6,966) 10,725 Chatham Lodging Trust (Reit) 243,994 23,595 13,092 Chc Group Ltd 91,251 (4,581) (890) Cheesecake Factory Inc/The (40,780) (117) (22,954) Chefs' Warehouse Inc/The (423,960) 91,586 1,328 Chegg Inc 7,370 (1,089) (5,612) Chemed Corp (501,208) (12,696) 12,813 Chemical Financial Corp 371,961 (22,679) United States continued 10,628 Chemtura Corp 264,425 9,412 (1,240) Cheniere Energy Inc (77,984) (7,328) 18,085 Cheniere Energy Partners Lp 455,561 49,117 (1,329) Chesapeake Energy Corp (37,877) ,781 Chesapeake Lodging Trust (Reit) 637,312 24,188 (2,974) Chevron Corp (363,690) 6,216 (2,242) Chicago Bridge & Iron Co NV (183,979) (8,677) (320) Chipotle Mexican Grill Inc (175,078) (5,019) 2,490 Chiquita Brands International Inc 25,597 (4,451) 796 Choice Hotels International Inc 35, Chubb Corp/The 59, (4,462) Church & Dwight Co Inc (307,744) (5,455) (4,920) Churchill Downs Inc (421,644) 26,137 (1,820) Chuy's Holdings Inc (59,623) 13,834 7,888 Cia Brasileira de Distribuicao ADR 359,141 2, Cia Cervecerias Unidas SA ADR 22,208 5 (26,631) Cia de Minas Buenaventura SA ADR (278,028) 11,204 (90,730) Cia Siderurgica Nacional SA ADR (351,125) 36,874 5,155 Ciena Corp 99,543 2,452 3,443 Cimarex Energy Co 450,723 34,087 (15,090) Cincinnati Financial Corp (739,108) (11,022) 4,476 Cinemark Holdings Inc 140,367 8,409 (17,313) Cintas Corp (1,073,579) (39,258) 685 CIRCOR International Inc 52,368 2,437 (5,683) Cirrus Logic Inc (127,299) (10,399) 721 Cirrus Logic Inc 16, ,772 CIT Group Inc 704,693 39,115 (6,566) Citi Trends Inc (132,436) (23,909) 15,507 Citigroup Inc 736,272 9,975 (288) Citizens & Northern Corp (5,458) 320 (41,148) Citizens Inc/TX (277,749) 25, Citrix Systems Inc 5, (1,591) Citrix Systems Inc (98,706) (1,841) (2,689) City Holding Co (117,240) (2,574) 264 City National Corp/CA 18, ,399 CLARCOR Inc 1,194,769 27, Clayton Williams Energy Inc 84,939 7,080 (3,944) Clean Energy Fuels Corp (42,832) (7,832) (7,387) Clean Harbors Inc (451,198) (26,243) (7,608) Clear Channel Outdoor Holdings Inc 'A' (61,853) 8,597 4,249 Clearwater Paper Corp 262,588 (1,065) (43,214) Clifton Bancorp Inc (518,568) 1,106 (4,202) Clorox Co/The (375,533) (4,286) 3,731 Cloud Peak Energy Inc 68,464 (2,505) (3,540) Cloud Peak Energy Inc (64,959) 4,173 (1,553) Clovis Oncology Inc (80,803) 11,213 27,155 CMS Energy Corp 801,072 7,332 (15,375) CNA Financial Corp (618,998) (4,940) 15,494 CNA Financial Corp 623,788 (1,085) (3,240) CNB Financial Corp/PA (54,756) 5,378 21,851 CNH Industrial NV 240, ,872 CNO Financial Group Inc 796,614 11,467 5,846 Coach Inc 238,517 (2,345) (2,774) Cobalt International Energy Inc (50,653) (574) (2,024) CoBiz Financial Inc (21,495) 1,154 (15,132) Coca-Cola Co/The (615,267) (646) 20,309 Coca-Cola Enterprises Inc 929,746 (8,574) (3,092) Coca-Cola Femsa SAB de CV ADR (361,053) (4,303) 19,779 Codexis Inc 28,086 (10,681) 630 Coeur Mining Inc 4,297 (707) (3,820) Coeur Mining Inc (26,052) 14,831 (9,346) Cogent Communications Group Inc (342,437) (6,195) (2,058) Cognex Corp (73,594) (4,507) 207 Cognizant Technology Solutions Corp 'A' 10, BlackRock Strategic Funds (BSF)

39 BlackRock Americas Diversified Equity Absolute Return Fund continued Contracts For Difference as at 31 May 2014 Holding Commitment Holding Commitment United States continued (21,714) Cohen & Steers Inc (885,931) (52,072) 14,364 Coherent Inc 861,265 7,954 (21,204) Cohu Inc (230,487) (4,029) (14,378) Colfax Corp (1,050,457) (7,054) 6,081 Colgate-Palmolive Co 407,305 3,007 11,114 Collectors Universe Inc 232,060 17,116 18,441 Colony Financial Inc (Reit) 403,305 3,580 16,973 Columbia Banking System Inc 424,325 (54,823) 8,180 Columbia Property Trust Inc (Reit) 213,825 (12,125) (627) Columbus McKinnon Corp/NY (18,183) (1,628) (2,723) Comcast Corp 'A' (141,405) 295 1,991 Comerica Inc 94,752 3, Comfort Systems USA Inc 3,433 (40) (116) Commerce Bancshares Inc/MO (5,097) (67) 18,595 Commercial Metals Co 334,710 (8,114) (15,290) Commercial Vehicle Group Inc (146,631) (13,608) (1,416) CommonWealth REIT (Reit) (37,425) (1,690) 1,199 CommScope Holding Co Inc 32,097 2,307 1,080 Community Bank System Inc 38, (10,761) Community Bank System Inc (386,966) 18, Community Health Systems Inc 27, (9,088) Community Health Systems Inc CVR (Right) (682) (150) (144) Community Trust Bancorp Inc (4,968) (182) 2,501 Communityone Bancorp 25,135 1,583 (632) CommVault Systems Inc (31,410) (373) (3,225) Compass Minerals International Inc (299,957) 327 (328) Computer Programs & Systems (20,943) 1,073 (21,249) Computer Task Group Inc (335,734) 12,075 1,401 Compuware Corp 13,800 (616) (15,089) comscore Inc (478,170) (5,281) (3,325) Comstock Resources Inc (91,039) (1,537) 1,484 Comverse Inc 37, ConAgra Foods Inc 4, ,440 Concert Pharmaceuticals Inc 21,496 (5,827) 383 Concho Resources Inc 50, Concur Technologies Inc 6, ,365 CONMED Corp 467,461 (5,817) (2,601) Conn's Inc (121,675) (29,534) (2,213) Connecticut Water Service Inc (71,259) 1,881 (1,271) ConnectOne Bancorp Inc (61,415) (38) (7,865) ConocoPhillips (623,537) (24,992) (2,429) CONSOL Energy Inc (107,362) (1,071) (8,050) Consolidated Communications Holdings Inc (165,025) (9,016) 6,691 Consolidated-Tomoka Land Co 313,607 45,966 3,203 Constant Contact Inc 93,688 8,451 2,786 Constellation Brands Inc 'A' 234,330 13,122 3,336 Constellium NV 'A' 97,478 3,088 3,859 Consumer Portfolio Services Inc 28,132 (1,196) 455 Contango Oil & Gas Co 19, ,840 Continental Building Products Inc 29, (1,600) Continental Resources Inc/OK (223,936) (5,740) 11,243 Convergys Corp 247,234 (1,038) (4,170) Conversant Inc (99,538) 3,872 (666) Cooper Tire & Rubber Co (18,462) 127 3,369 Copa Holdings SA 'A' 481,329 19,528 (6,181) Corcept Therapeutics Inc (13,660) 10,924 1,107 Core-Mark Holding Co Inc 91,438 9,443 5,338 CoreLogic Inc/United States 152,347 4, Cornerstone OnDemand Inc 3, (19,242) Corning Inc (411,009) (5,491) 8,309 Corporate Executive Board Co 571,659 (9,081) (1,094) Corporate Executive Board Co (75,267) (570) (4,326) Corporate Resource Services Inc (10,469) (822) 2,649 Corrections Corp of America (Reit) 86,437 2,601 United States continued 5,078 Corvel Corp 239,885 (10,918) 2,884 Cosan Ltd 'A' 36,454 1,159 2,579 Costco Wholesale Corp 296,688 6,771 (83,023) Coty Inc 'A' (1,371,540) (57,522) (2,101) Coupons.com Inc (53,849) (11,027) 293 Courier Corp 4,158 (448) 778 Cousins Properties Inc (Reit) 9, (1,773) Covance Inc (148,985) 2,336 2,032 Covance Inc 170,749 (322) 544 Covidien Plc 39,679 1,072 (226) Covisint Corp (1,184) 1,153 (28,966) Cowen Group Inc 'A' (121,078) 2,506 2,742 CPI Aerostructures Inc 34,220 (539) (292) CR Bard Inc (43,038) (356) 11,289 CRA International Inc 253,438 2,596 (88) Cracker Barrel Old Country Store Inc (8,800) (422) (13,753) Craft Brew Alliance Inc (151,558) 54, Crane Co 11, ,341 Crawford & Co 'B' 62,078 (1,395) (8,370) Cray Inc (235,071) 54,392 (2,317) Credicorp Ltd (361,081) (22,149) (62,038) Crocs Inc (934,292) 7,455 23,593 Cross Country Healthcare Inc 134,480 (63,465) 11,630 Crown Castle International Corp (Reit) 892,835 2,020 32,714 Crown Media Holdings Inc 'A' 115,480 (11,123) 358 CryoLife Inc 3,161 (333) (1,303) CSG Systems International Inc (34,230) 1,422 (1,237) CST Brands Inc (40,623) (355) 372 CST Brands Inc 12, ,895 CTC Media Inc 342,108 37,121 (13,895) CTC Media Inc (144,508) (5,031) (1,628) CTS Corp (28,588) 5, CubeSmart (Reit) 9, (4,715) CubeSmart (Reit) (85,954) (4,432) (14,999) Cubic Corp (727,152) 42,754 (176) Cubist Pharmaceuticals Inc (11,651) 37 1,832 Cullen/Frost Bankers Inc 138,279 2,601 (272) Cullen/Frost Bankers Inc (20,531) (129) 14,698 Culp Inc 276,322 (14,698) 35,166 Cumberland Pharmaceuticals Inc 158,950 (6,330) (896) Cummins Inc (136,282) (168) (17,748) Cumulus Media Inc 'A' (115,539) 1,255 1,003 Customers Bancorp Inc 19,047 1,071 4,199 Cutera Inc 41,444 (2,058) 4,092 Cvent Inc 103,446 1, CVS Caremark Corp 59,219 1,794 (1,471) Cyberonics Inc (91,011) (292) (8,342) Cypress Semiconductor Corp (85,422) (3,616) 7,500 CyrusOne Inc (Reit) 170,925 4,436 1,870 CYS Investments Inc (Reit) 17,073 1,103 1,020 Cytec Industries Inc 101,572 2,744 (307) Daily Journal Corp (52,359) 1,366 2,907 Daktronics Inc 36,250 (3,721) (26,099) Dana Holding Corp (578,615) (22,860) 310 Danaher Corp 24, (5,515) Darden Restaurants Inc (273,930) 5,561 (36,767) Darling International Inc (742,693) (25,107) 1,863 Darling International Inc 37, (5,878) Datalink Corp (54,783) 29,801 (4,025) Datawatch Corp (63,072) 58,808 (63) DaVita HealthCare Partners Inc (4,413) (71) (364) Dawson Geophysical Co (9,817) 564 (1,470) Dealertrack Technologies Inc (58,352) 123 (16,416) Dean Foods Co (282,191) (7,317) 5,110 Dean Foods Co 87,841 12, Deckers Outdoor Corp 55,539 (503) The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 37

40 BlackRock Americas Diversified Equity Absolute Return Fund continued Contracts For Difference as at 31 May 2014 Holding Commitment Holding Commitment United States continued (1,237) Deckers Outdoor Corp (96,356) 2,001 (15,080) Deere & Co (1,371,224) 32,827 (2,927) Delek US Holdings Inc (89,566) 1,021 1,253 Delphi Automotive Plc 86,495 3,847 8,925 Delta Air Lines Inc 359,499 19,189 25,549 Delta Apparel Inc 383,746 (37,813) (318) Deltic Timber Corp (19,570) (279) 254 Deluxe Corp 14,107 (62) 13,794 Demand Media Inc 63,590 (1,104) (2,687) Demandware Inc (162,268) (7,639) (27,905) Denbury Resources Inc (471,036) 2,023 (14,234) Denny's Corp (93,233) (755) (2,027) DENTSPLY International Inc (95,918) (1,769) (1,487) Depomed Inc (17,547) 4,178 (14,112) Derma Sciences Inc (141,543) 52,073 (6,192) Destination Xl Group Inc (33,313) 5,016 1,264 Devon Energy Corp 93,005 3,590 (8,817) DeVry Education Group Inc (369,520) 17, DEX MEDIA Inc 2, ,253 DexCom Inc 145,835 15,518 (656) DFC Global Corp (6,075) (634) (2,735) Diamond Foods Inc (87,110) (5,197) (735) Diamond Offshore Drilling Inc (37,507) (312) 11,886 Diamond Resorts International Inc 227,023 11,276 (1,260) Diamondback Energy Inc (94,349) (5,254) 4,911 Diana Shipping Inc 53, Dice Holdings Inc 3,841 (44) 26,838 Dick's Sporting Goods Inc 1,197,780 (138,299) (24,691) Diebold Inc (929,122) 12,089 1,099 Digi International Inc 9,539 (1,319) 367 Digimarc Corp 11,872 1,101 6,272 Digital Realty Trust Inc (Reit) 362, DigitalGlobe Inc 6, (2,763) Dillard's Inc 'A' (312,191) (8,771) 422 Dillard's Inc 'A' 47,682 6,917 (44,209) Dime Community Bancshares Inc (677,724) 80,460 6,412 DineEquity Inc 509,818 1,878 (637) DineEquity Inc (50,648) 1, Diodes Inc 24, ,498 DIRECTV 287,361 (6,090) 6,623 Discovery Communications Inc 'A' 514,077 8,416 (3,301) DISH Network Corp 'A' (194,660) 4,291 (1,859) Dixie Group Inc/The (21,732) 7,622 (30,903) Dolby Laboratories Inc 'A' (1,281,547) 23,585 7,709 Dollar General Corp 412,431 (16,811) 106 Dollar Tree Inc 5, ,839 Dominion Diamond Corp 359,680 (17,817) (8,812) Dominion Resources Inc/VA (602,917) 14,628 4,181 Domino's Pizza Inc 301,785 4,056 1,522 Domtar Corp 140,054 2, Donaldson Co Inc 16,066 (504) 2,213 Dorman Products 119,458 (954) 2,213 Dot Hill Systems Corp 9, ,303 Douglas Dynamics Inc 146,880 2,736 (46,003) Douglas Emmett Inc (Reit) (1,306,945) (25,600) (275) Dow Chemical Co/The (14,262) 96 (3,457) DR Horton Inc (82,726) (7,845) 27 Dr Pepper Snapple Group Inc 1, (2,920) Dream Office Real Estate Investment Trust (Reit) (78,840) (3,558) (32,146) DreamWorks Animation SKG Inc 'A' (895,909) (66,578) (3,903) Dresser-Rand Group Inc (240,191) (1,667) 15,672 Drew Industries Inc 764,167 (31,277) 3,540 Dril-Quip Inc 360,514 (14,775) (287) DST Systems Inc (26,045) (730) 14,135 DSW Inc 'A' 350,689 (39,856) United States continued (8,374) DTS Inc/CA (152,156) 21,528 2,896 Ducommun Inc 74,001 (889) 970 Dun & Bradstreet Corp/The 100, ,989 DuPont Fabros Technology Inc (Reit) 540,467 16,553 (1,179) Dycom Industries Inc (35,464) 1,869 (2,993) Dynamic Materials Corp (62,793) (4,929) 783 Dynegy Inc 26,027 1,660 (1,484) Dynergy Inc (49,328) (13,549) (13,516) E2open Inc (238,693) 71,326 (7,769) Eagle Bancorp Inc (255,367) 24, ,095 EarthLink Holdings Corp 363,437 (31,828) 295 East West Bancorp Inc 9, Eastern Co/The 4,122 (5) 10,470 EastGroup Properties Inc (Reit) 664,845 9,910 5,841 Eastman Chemical Co 511,788 21,203 (26,453) Eaton Vance Corp (983,523) (48,883) 10,204 ebay Inc 511,935 (27,910) 27,600 Echelon Corp 73,140 (15,732) 6,897 Echo Global Logistics Inc 129,939 12,415 6,596 EchoStar Corp 'A' 335,736 10,450 (13,628) Education Management Corp (26,166) 48,516 (6,226) Edwards Lifesciences Corp (507,979) 15,824 (1,426) egain Corp (9,412) 1,155 2,529 Egalet Corp 31,815 4,831 (357) ehealth Inc (13,098) 5,698 (7,992) EI du Pont de Nemours & Co (550,249) (14,582) 30,508 Einstein Noah Restaurant Group Inc 469,518 (39,355) 4,019 El Paso Electric Co 152,722 6,932 (428) El Paso Electric Co (16,264) (1,390) 1,052 Electro Rent Corp 17, ,528 Electro Scientific Industries Inc 174,578 (24,559) (7,049) Electronic Arts Inc (245,164) (19,925) (201) Elephant Talk Communications Corp (165) 111 (1,681) Elizabeth Arden Inc (44,025) 6,405 (3,267) Ellie Mae Inc (90,398) 7,586 (10,099) Embraer SA ADR (365,584) (16,868) (180) EMCOR Group Inc (8,026) (33) 6,654 Emerson Electric Co 442,624 3,406 (2,989) Empire District Electric Co/The (71,437) 882 (7,486) Empire Resorts Inc (46,713) 6,838 3,965 Employers Holdings Inc 84,613 1,864 4,110 Empresa Nacional de Electricidad SA/Chile ADR 183,758 16,007 (17,437) Empresas ICA SAB de CV ADR (140,368) (11,744) 17,212 Emulex Corp 91,396 (3,634) (51,915) Enbridge Energy Management LLC (1,535,646) (48,636) (893) Encore Capital Group Inc (38,988) 3, Encore Wire 7, (1,843) Endocyte Inc (11,740) 11,961 9,116 Endurance International Group Holdings Inc 119,967 2,426 (100) Energen Corp (8,486) (64) 158 Energizer Holdings Inc 18, ,747 Energy XXI Bermuda Ltd 513,400 (656) (173) EnerNOC Inc (3,327) ,388 Enersis SA ADR 365,596 19,077 11,849 EnerSys Inc 823,861 32,145 1,124 Engility Holdings Inc 43,712 (6,238) 9,274 Ennis Inc 141,150 (7,125) 3,409 Enphase Energy Inc 28, (1,361) EnPro Industries Inc (99,367) (3,067) 4,773 Ensco Plc 'A' 251,585 12, Ensign Group Inc/The 30,440 2,752 (1,874) Enstar Group Ltd (266,277) (13,530) 15,423 Entegris Inc 176, (6,049) Entercom Communications Corp 'A' (63,152) BlackRock Strategic Funds (BSF)

41 BlackRock Americas Diversified Equity Absolute Return Fund continued Contracts For Difference as at 31 May 2014 Holding Commitment Holding Commitment United States continued (14,586) Entergy Corp (1,096,138) (19,173) 2,429 Enterprise Financial Services Corp 42,848 (4,154) 2,685 Entropic Communications Inc 8, Enventis Corp 2, Envestnet Inc 13,705 (803) (2,959) Envestnet Inc (120,698) (6,218) 12,504 Envivio Inc 26,634 (16,505) 88,110 Enzon Pharmaceuticals Inc 79,299 (14,098) 726 EOG Resources Inc 76,753 1,432 3,940 EP Energy Corp 'A' 78,564 3,507 (1,732) EPAM Systems Inc (73,333) (4,647) 485 EPL Oil & Gas Inc 18,643 1,140 2,352 eplus Inc 133,476 10,325 (5,064) EPR Properties (Reit) (274,469) (2,932) 1,499 EQT Corp 157, (828) EQT Corp (86,882) (1,462) (6,682) Equifax Inc (472,150) (1,700) 16,252 Equity Lifestyle Properties Inc (Reit) 708,100 14,556 (2,265) Equity Residential (Reit) (139,683) (6,880) 78 Era Group Inc 2,293 (20) (4,672) Erickson Air Crane Inc (76,434) 18,081 (22,807) ESB Financial Corp (287,596) 16,421 2,120 Essent Group Ltd 42,400 (6,129) 6,370 Estee Lauder Cos Inc/The 'A' 486,222 20,766 1,031 Esterline Technologies Corp 114,266 3,513 (491) Ethan Allen Interiors Inc (11,701) 319 2,999 Euronet Worldwide Inc 143,442 4,212 (1,734) EverBank Financial Corp (33,137) (892) 21,807 EverBank Financial Corp 416,732 5,234 (167) Evercore Partners Inc 'A' (9,305) 67 3,732 Evertec Inc 89,419 1,828 3,396 Everyday Health Inc 59,939 13,793 (1,342) Everyware Global Inc (1,449) 3, Evolution Petroleum Corp 9,046 (1,235) (13,117) EW Scripps Co 'A' (257,356) (16,021) 12,063 Exa Corp 110,256 (35,618) 9,907 Exactech Inc 232,220 9,973 (162) ExamWorks Group Inc (4,803) 878 (35,450) Exar Corp (387,469) 28,225 3,319 Excel Trust Inc (Reit) 44,176 2,688 (29,262) EXCO Resources Inc (156,552) 19,323 21,760 Exelis Inc 367,962 (7,402) Exelon Corp (270,395) (5,733) 375 ExlService Holdings 10,721 (94) (760) ExOne Co/The (22,101) 10, Expedia Inc 64,272 2,420 1,439 Express Inc 17,138 (8,484) 373 Express Scripts Holding Co 26,511 1,625 1,589 Extended Stay America Inc 34, ,922 Extreme Networks Inc 113,519 (53,940) (14,000) Exxon Mobil Corp (1,407,140) (12,639) 1,566 Ezcorp Inc 'A' 19, ,937 Fabrinet 110,844 (4,156) 1,049 Facebook Inc 'A' 66,821 1, FactSet Research Systems Inc 39, (6,063) Fair Isaac Corp (360,749) (29,947) (25,302) Fairchild Semiconductor International Inc (371,686) (17,502) (16,012) Fairpoint Communications Inc (227,531) (13,130) (226) Fairway Group Holdings Corp (1,510) 549 1,169 Farmer Bros Co 23,298 (694) (5,972) Farmers Capital Bank Corp (114,543) 10,059 (2,946) FARO Technologies Inc (125,087) 17,596 (3,426) Fastenal Co (167,360) (1,727) 5,060 FBR & Co 134,849 2,226 6,362 Federal Home Loan Mortgage Corp 28,311 2,608 United States continued (865) Federated Investors Inc 'B' (24,635) Federated National Holding Co 4, ,364 FedEx Corp 197,016 5,225 1,890 FEI Co 157,456 (13,211) (242) FEI Co (20,161) (745) (10,445) FelCor Lodging Trust Inc (Reit) (106,643) (10,486) (705) Ferro Corp (9,172) 92 (39,144) Fibria Celulose SA ADR (363,648) 51,908 8,874 Fidelity & Guaranty Life 190,791 (13,311) (27,469) Fidelity National Financial Inc 'A' (922,134) 7,143 1,926 Fidelity National Information Services Inc 103,975 1,177 1,731 Fidelity Southern Corp 23,109 (658) (3,650) Fidus Investment Corp (67,708) 5,840 1,852 Fiesta Restaurant Group Inc 74,710 4,843 (1,889) Financial Engines Inc (78,847) (831) (554) Finisar Corp (13,567) (637) (6,931) Finish Line Inc/The 'A' (200,375) 1,589 1,187 FireEye Inc 39,242 1,159 (16,627) First American Financial Corp (473,038) (14,904) (2,758) First Bancorp Inc/ME (44,762) (276) (12,308) First BanCorp/Puerto Rico (61,540) 4,649 (8,936) First Bancorp/Troy NC (165,137) 5,719 5,817 First Busey Corp 33,041 (2,327) (6,461) First Cash Financial Services Inc (339,978) 5,880 5,413 First Citizens BancShares Inc/NC 'A' 1,190,265 (60,904) (2,234) First Defiance Financial Corp (63,803) (3,018) (983) First Financial Bancorp (16,082) (509) 20,337 First Financial Bankshares Inc 1,224,694 6,106 (307) First Financial Corp/IN (9,962) ,904 First Financial Holdings Inc 817,555 (44,202) 10,378 First Financial Northwest Inc 114,988 8, First Interstate Bancsystem Inc 4,955 (132) (1,162) First Majestic Silver Corp (9,784) 694 (15,480) First Marblehead Corp/The (67,028) 22,593 34,533 First Merchants Corp 694,804 (61,814) 2,242 First of Long Island Corp/The 86,429 2,426 27,886 First Security Group Inc/TN 57,027 3,038 3,493 First Solar Inc 218,382 2, Fiserv Inc 13, (2,774) Five Below (97,978) 7,018 1,744 Five9 Inc 12,208 1,900 1,941 Flagstar Bancorp Inc 33,424 (8,851) 275 Fleetmatics Group Plc 8, ,110 Flexsteel Industries Inc 37,496 (4,262) 33,834 Flextronics International Ltd 344,768 28,591 (8,823) FLIR Systems Inc (305,452) (3,674) (7,447) Flotek Industries Inc (215,814) (5,304) 12,312 Flowers Foods Inc 262,246 9,390 4,263 Flowserve Corp 314,268 (2,046) (4,758) Fluidigm Corp (134,889) 88,437 4,541 Fluor Corp 341,529 4,541 (5,533) FMC Corp (424,049) (24,069) 1,249 FMC Technologies Inc 72,280 2,923 59,332 FNB Corp/PA 730,970 (23,518) 1,027 Foot Locker Inc 49,686 1,471 7,511 Forbes Energy Services Ltd 30,194 1,352 16,776 Forestar Group Inc 291,064 (32,881) (4,915) FormFactor Inc (35,486) (1,425) (2,715) Forrester Research Inc (103,170) (1,017) 51,587 Fortegra Financial Corp 370,911 (8,254) (3,723) Fortinet Inc (83,991) 672 (4,388) Fortune Brands Home & Security Inc (176,003) (5,790) (8,820) Forum Energy Technologies Inc (294,412) (32,051) 422 Forward Air 18, (4,434) Forward Air Corp (197,845) 881 The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 39

42 BlackRock Americas Diversified Equity Absolute Return Fund continued Contracts For Difference as at 31 May 2014 Holding Commitment Holding Commitment United States continued 2,740 Fossil Group Inc 285,152 8,378 (9,265) Foster Wheeler AG (312,972) (4,437) (8,197) Fox Chase Bancorp Inc (132,054) 7,541 (3,981) Francesca's Holdings Corp (62,462) 17,350 1,083 Frank's International NV 25,667 (370) (425) Franklin Covey Co (9,193) (192) 17,541 Franklin Electric Co Inc 669,365 (18,797) (48,663) Franklin Financial Corp/VA (972,287) (12,448) 3,782 Franklin Street Properties Corp (Reit) 47, (18,736) Fred's Inc (282,539) 70,811 (2,547) Freescale Semiconductor Ltd (57,078) 2,812 (11,030) FreightCar America Inc (288,159) (21,122) 4,687 Fresh Del Monte Produce Inc 134,329 1,033 1,455 Fresh Market Inc /The 44,276 1,199 (4,156) Fresh Market Inc/The (126,467) 11,259 (43,456) Frontier Communications Corp (251,610) (9,156) (6,856) Frontline Ltd/Bermuda (16,454) 11,107 (1,027) FTI Consulting Inc (32,669) (326) (183) Fuel Systems Solutions Inc (1,861) 49 (11,751) Fusion-io Inc (96,241) 32,533 5,232 FutureFuel Corp 90, (14,851) FX Energy Inc (55,543) 7,077 (9,661) FXCM Inc 'A' (129,844) 19, G & K Services Inc 'A' 41,964 (1,442) (872) G-III Apparel Group Ltd (63,822) (747) (109,512) Gafisa SA ADR (332,916) (25,157) 299 Gain Capital Holdings Inc 2,395 (903) 78 GAMCO Investors Inc 'A' 5,985 (376) 1,577 GameStop Corp 'A' 59,847 3,280 4,272 Gaming and Leisure Properties Inc (Reit) 143,539 (2,974) 4,715 Gannett Co Inc 131,501 2, Gap Inc/The 30, (8,528) Garmin Ltd (498,206) (22,422) 652 GasLog Ltd 15, (548) GATX Corp (35,768) (29) 955 Geeknet Inc 13, ,274 General Cable Corp 207,760 7, General Communication Inc 'A' 2, ,594 General Electric 148, ,557 General Finance Corp 30, (15,817) General Growth Properties Inc (Reit) (374,388) (5,220) (2,839) General Mills Inc (155,378) (3,747) 3,000 General Motors Co 102,810 (1,160) (644) Genesco Inc (49,137) (1,984) (3,633) Genesee & Wyoming Inc 'A' (351,093) (5,849) (18,979) GenMark Diagnostics Inc (212,185) 16,891 12,875 Genpact Ltd 216,300 (4,787) 279 Gentherm Inc 11,514 2,709 (1,253) Gentiva Health Services Inc (17,078) (6,031) 4,042 Genuine Parts Co 347,935 6,225 (17,839) Genworth Financial Inc 'A' (305,582) 18,046 (646) Geospace Technologies Corp (33,204) 14,312 40,575 Gerdau SA ADR 245,073 (1,540) 4,959 German American Bancorp Inc 134,488 (10,166) (10,716) Getty Realty Corp (Reit) (210,998) (11,807) (2,177) GFI Group Inc (7,293) 776 (17,239) Gibraltar Industries Inc (274,617) 38,892 1,378 Gilead Sciences Inc 112,211 1, Glacier Bancorp Inc 5, (70,564) Glimcher Realty Trust (Reit) (770,559) (86,794) 28,931 Global Brass & Copper Holdings Inc 464,053 (13,019) 43,686 Global Cash Access Holdings Inc 389,242 6, Global Eagle Entertainment Inc 6,192 (3,332) 14,159 Global Geophysical Services Inc 780 (18,618) (14,595) Global Indemnity Plc (399,611) (18,782) United States continued (1,834) Global Payments Inc (127,096) (799) (9,048) Global Power Equipment Group Inc (150,016) 22,591 7,274 Global Sources Ltd 59,720 7,410 41,967 Globalstar Inc 141,009 13,603 1,531 Globe Specialty Metals Inc 30, (3,147) Globus Medical Inc 'A' (76,850) 1,127 6,672 Glori Energy Inc 61,716 6,861 6,060 GNC Holdings Inc 'A' 221,008 (3,879) 8,748 Gogo Inc 161,313 (8,812) (6,660) Golar LNG Ltd (308,957) (6,869) 35,155 Gold Reserve Inc 108,980 (1,758) 1,213 Gold Resource Corp 5,398 (61) 3,743 Goldman Sachs Group Inc/The 599,554 5,890 (39,459) Golub Capital BDC Inc (671,198) 82, Google Inc 'A' 31,208 1,726 13,091 Gordmans Stores Inc 55,637 (26,967) 410 Gorman-Rupp Co/The 12, (3,521) Government Properties Income Trust (Reit) (89,786) (2,601) (14,983) GrafTech International Ltd (157,471) (3,840) (87) Graham Corp (2,490) Graham Holdings Co 'B' 29,059 (357) 2,511 Gran Tierra Energy Inc 18,280 1,030 1,066 Grand Canyon Education Inc 46,712 (3,251) (7,142) Granite Construction Inc (256,898) (1,130) 30,982 Graphic Packaging Holding Co 338,943 19,931 1,875 Great Northern Iron Ore Properties 32,625 (8,475) 7,311 Greatbatch Inc 342,009 5,168 (1,330) Green Plains Inc (38,543) (715) 1,085 Green Plains Renewable Energy Inc 31,443 2,691 5,675 Greenbrier Cos Inc/The 315,360 58,754 (3,282) Greenbrier Cos Inc/The (182,381) (29,335) (2,646) Greenhill & Co Inc (132,141) (110) 7,758 Greenlight Capital Re Ltd 'A' 247,635 (7,267) (16,469) Greif Inc 'A' (893,773) (32,349) (7,759) Griffin Land & Nurseries Inc (215,778) 17,557 6,441 Griffon Corp 76,133 (3,607) (7,545) Group 1 Automotive Inc (607,976) (21,341) (20,220) Groupon Inc (120,309) 43,306 (804) GrubHub Inc (27,883) (2,564) 8,110 Grupo Aeroportuario del Centro Norte Sab de CV ADR 248,490 34,711 5,244 Grupo Aeroportuario del Pacifico SAB de CV ADR 324,499 3,671 (10,872) Grupo Televisa SAB ADR (372,583) (16,554) 11,780 GSE Holding Inc 1,178 (3,181) (173) GSI Group Inc (2,123) 41 1,846 GSV Capital Corp 17,500 (6,184) (14,097) GT Advanced Technologies Inc (242,609) (27,800) 1,076 GTT Communications Inc 11,707 1,316 1,278 Guess? Inc 33,202 (1,101) (32,160) Guidance Software Inc (315,168) 30,530 (20,737) Guidewire Software Inc (800,033) (17,854) 9,455 Guidewire Software Inc 364,774 7,740 (4,464) Gulf Island Fabrication Inc (88,566) 12,345 3,990 Gulfmark Offshore Inc 'A' 186,014 6,163 4,672 Gulfport Energy Corp 294,663 3,304 5,292 H&E Equipment Services Inc 182,098 (9,157) 1,601 H&R Block Inc 47,374 2,642 43,874 Hackett Group Inc/The 264,560 (491) (334) Haemonetics (11,516) (361) 5,250 Haemonetics Corp 181,020 (8,312) (2,103) Hain Celestial Group Inc/The (193,034) (874) 14,867 Hallador Energy Co 138,560 8, Halliburton Co 44,162 1,091 25,892 Hallmark Financial Services Inc 252,706 30, BlackRock Strategic Funds (BSF)

43 BlackRock Americas Diversified Equity Absolute Return Fund continued Contracts For Difference as at 31 May 2014 Holding Commitment Holding Commitment United States continued (5,955) Hampton Roads Bankshares Inc (10,183) (419) 3,490 Hancock Holding Co 117, (6,550) Hanesbrands Inc (552,296) (14,987) 8,834 Hanger Inc 268,465 (7,673) 2,699 Hanmi Financial Corp 58,568 (8,394) (6,478) Hannon Armstrong Sustainable Infrastructure Capital Inc (91,275) 3,076 (959) Hanover Insurance Group Inc/The (58,451) (131) 3,006 Hanover Insurance Group Inc/The 183,216 4,398 (71,754) Hansen Medical Inc (100,456) 63,861 3,295 Harbinger Group Inc 39,540 (2,405) (414) Harley-Davidson Inc (29,454) (52) 319 Harman International Industries Inc 33, ,632 Harmonic Inc 144,492 15,117 8,907 Harsco Corp 237,104 43,514 19,545 Harte-Hanks Inc 145,219 (16,027) 9,218 Harvard Bioscience Inc 38,347 (3,872) 718 Harvest Natural Resources Inc 3, ,401 Hasbro Inc 128, (8,180) Hatteras Financial Corp (Reit) (165,890) (1,083) 3,130 Haverty Furniture Cos Inc 78,720 (12,356) 3,826 Hawaiian Electric Industries Inc 91,805 (279) (208) Haynes International Inc (11,082) (605) (722) HB Fuller Co (34,627) (780) 5,702 HB Fuller Co 273, HCA Holdings Inc 30,764 (263) 126 HCP Inc 5,273 (52) (4,813) Hd Supply Holdings Inc (125,860) (1,740) (5,767) Health Insurance Innovations Inc 'A' (55,133) 12,918 (1,234) Health Net Inc/CA (49,237) (388) 4,572 Health Net Inc/CA 182,423 1,339 (15,797) Healthcare Realty Trust Inc (Reit) (393,503) (1,470) 4,314 Healthcare Services Group Inc 128,859 4,027 (20,085) Healthcare Services Group Inc (599,939) (47,200) (3,377) Healthcare Trust of America Inc 'A' (Reit) (40,862) (203) (7,030) Healthways Inc (122,674) (11,347) (17,755) Heartland Express Inc (389,722) 5, Heartland Payment Systems Inc 20, (3,231) HeartWare International Inc (297,834) 1, Hecla Mining Co 2,384 (167) (63,423) Hecla Mining Co (173,779) 39,906 3,198 HEICO Corp 168,279 1,171 (2,030) Heidrick & Struggles International Inc (38,144) 1,137 (3,457) Helen of Troy Ltd (202,079) 28,683 26,782 Helix Energy Solutions Group Inc 619,735 (1,559) (2,969) Helmerich & Payne Inc (326,174) (11,627) 1,456 Hemisphere Media Group Inc 16,569 (868) (1,605) Henry Schein Inc (190,818) (7,527) 49,147 Heritage Financial Group Inc 907,745 (27,821) 40,365 Heritage Oaks Bancorp 294,261 (25,026) (6,390) Heritage-Crystal Clean Inc (109,141) (3,101) 416 Herman Miller Inc 13,037 (165) (8,096) Hersha Hospitality Trust (Reit) (51,248) (1,305) (7,842) Hewlett-Packard Co (262,942) (869) 2,861 Hewlett-Packard Co 95,929 3,204 8,653 Hexcel Corp 355, ,709 HFF Inc 'A' 378,903 (10,320) 2,030 hhgregg Inc 18, (9,779) Hibbett Sports Inc (508,801) 46,721 2,232 Higher One Holdings Inc 8,169 (1,783) (7,035) Hill-Rom Holdings Inc (278,305) (7,954) 553 Hillenbrand Inc 16,767 (870) 123 Hillshire Brands Co 6,494 1,970 (6,331) Hillshire Brands Co/The (334,277) (402) 10,998 Hilltop Holdings Inc 228,758 (854) United States continued 441 Hingham Institution for Savings 32, (6,322) Hittite Microwave Corp (368,193) 14,355 2,862 Hittite Microwave Corp 166,683 2, HMS Holdings Corp 5, (5,808) HMS Holdings Corp (109,307) (10,025) 7,642 HNI Corp 285,964 4,269 3,151 HollyFrontier Corp 155,848 1,260 (4,748) HollyFrontier Corp (234,836) 427 (8,726) Home Bancorp Inc (183,421) (4,676) 4,337 Home BancShares Inc/AR 134,794 3, Home Depot Inc/The 31, (302) Home Loan Servicing Solutions Ltd (6,783) (32) 3,919 Home Loan Servicing Solutions Ltd 88,021 4,284 (952) Home Properties Inc (Reit) (59,091) ,131 HomeStreet Inc 974,358 (32,320) 8,668 Honeywell International Inc 803,090 9,356 14,792 Horace Mann Educators Corp 434,145 1,769 (5,215) Horizon Pharma Inc (75,722) (3,723) 159 Hormel Foods Corp 7,805 7 (7,511) Horsehead Holding Corp (126,185) 5,189 (20,047) Hospira Inc (974,685) (67,235) 17,492 Host Hotels & Resorts Inc (Reit) 383,949 9,096 (10,644) Houghton Mifflin Harcourt Co (191,805) (466) 2,385 Houston Wire & Cable Co 28,489 (1,184) (17,864) Hovnanian Enterprises Inc 'A' (85,033) 2,165 6,092 HSN Inc 336,705 (4,407) (633) Hub Group Inc 'A' (29,909) (1,074) 4,577 Hub Group Inc 'A' 216,263 23, Hubbell Inc 'B' 113,208 1,132 (81,732) Hudson City Bancorp Inc (805,878) (15,178) (5,272) Hudson Pacific Properties Inc (Reit) (125,210) (1,346) (23,582) Hudson Valley Holding Corp (424,004) 36,804 (867) Humana Inc (107,820) (4,528) 946 Huntington Ingalls Industries Inc 94,061 2,819 4,149 Huntsman Corp 111,152 7,302 (97) Hurco Cos Inc (2,670) (176) 175 Huron Consulting Group Inc 11, ,325 Hyatt Hotels Corp 'A' 442,137 29, Hyster-Yale Materials Handling Inc 44,721 (9,169) 33,572 IAMGOLD Corp 102,395 (11,569) (19,444) ICG Group Inc (379,158) 10,305 4,178 ICON Plc 174,264 (16,366) 4,652 Iconix Brand Group Inc 196,826 4,269 4,536 ICU Medical Inc 274,927 7, IDACORP Inc 11, ,375 IDT Corp 'B' 215,739 (10,165) (6,075) igate Corp (214,387) (9,993) (3,333) Ignite Restaurant Group Inc (50,962) (3,216) 3,573 Ignyta Inc 25,726 1,621 (963) IHS Inc 'A' (121,377) (4,032) 12,511 II-VI Inc 173,653 (26,698) 585 Imax Corp 14, ,653 Immersion Corp 148,272 6,280 (6,113) Impax Laboratories Inc (169,391) (9,918) 21,430 Imperial Holdings Inc 141,009 23,573 3,070 IMS Health Holdings Inc 74, (16,164) incontact Inc (134,808) 22,953 (43) Incyte Corp Ltd (2,110) 81 (16,408) Independence Holding Co (231,845) (8,543) (14,616) Independent Bank Corp (191,031) (3,844) (24,835) Independent Bank Corp/Rockland MA (902,504) 45,945 (946) Independent Bank Group Inc (44,046) 918 (7,813) Infinera Corp (72,192) (6,172) 353 Infinera Corp 3, Infinity Property & Casualty Corp 36,168 (342) (281) Infoblox Inc (3,602) 2,759 The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 41

44 BlackRock Americas Diversified Equity Absolute Return Fund continued Contracts For Difference as at 31 May 2014 Holding Commitment Holding Commitment United States continued 1,760 Informatica Corp 64, ,389 Ingles Markets Inc 'A' 146,581 18,376 17,290 Ingram Micro Inc 'A' 477,896 24,033 (207) Ingredion Inc (15,691) (336) 63,258 Inland Real Estate Corp (Reit) 671,167 11,527 (863) InnerWorkings Inc (6,636) Innophos Holdings Inc 7,569 (385) (119) Innospec Inc (4,990) 241 (480) Innovative Solutions & Support Inc (3,240) 552 4,234 Inogen Inc 72,232 (6,363) 10,299 Inphi Corp 155,103 (5,767) (127) Insperity Inc (4,064) (413) 382 Installed Building Products Inc 5, ,566 Insulet Corp 132,370 10,817 (14,508) Integra LifeSciences Holdings Corp (662,000) 16,359 (3,752) Integrated Device Technology Inc (50,277) (4,605) (2,807) Integrys Energy Group Inc (161,234) 9,183 14,999 Inteliquent Inc 221,535 6, Intelsat SA 10, (10,459) Inter Parfums Inc (315,757) 42,223 3,545 Interactive Brokers Group Inc 'A' 81,287 1,357 4,779 Interactive Intelligence Group Inc 242,056 (17,782) (401) Intercept Pharmaceuticals Inc (95,010) 18, IntercontinentalExchange Group Inc 30, (2,190) InterDigital Inc/PA (83,308) (15,199) 16,716 Interface Inc 306,739 9,519 (255) Interface Inc (4,679) ,500 Intermolecular Inc 59,780 (7,840) (3,190) InterMune Inc (126,133) (14,451) (3,250) International Business Machines Corp (595,660) 10,335 2,570 International Flavors & Fragrances Inc 256,846 9,511 11,530 International Game Technology 144,067 1,557 1,138 International Paper Co 53, ,758 International Rectifier Corp 317, (3,337) International Speedway Corp 'A' (104,181) (1,357) (75) InterOil Corp (4,922) (389) 13,882 Intersections Inc 59,276 (30,957) (8,692) Intersil Corp 'A' (122,036) (3,472) 17,134 Interval Leisure Group Inc 350,219 7,244 (2,491) Intevac Inc (18,234) 869 (8,952) INTL. FCStone Inc (165,433) 306 3,016 IntraLinks Holdings Inc 25,998 (5,730) 2,512 Intrawest Resorts Holdings Inc 29,265 (88) (41,562) Intrepid Potash Inc (675,383) (21,770) (616) Intrexon Corp (13,139) 3,940 (170) Intuitive Surgical Inc (63,271) (1,134) (4,492) Inventure Foods Inc (56,734) 4,518 1,080 Invesco Ltd 39,550 1,751 3,101 Invesco Mortgage Capital Inc (Reit) 54,516 2,481 (27,373) Investors Bancorp Inc (293,302) (6,239) 6,900 Investors Real Estate Trust (Reit) 61, Investors Title Co 3,971 (485) 597 ION Geophysical Corp 2, (759) Iron Mountain Inc (23,567) (138) 1,341 Isis Pharmaceuticals Inc 39,962 5,726 (8,363) Isle of Capri Casinos Inc (58,457) 8,948 (1,078) Isramco Inc (136,626) 17,690 12,036 Itau Unibanco Holding SA ADR (Pref) 189,868 (845) 811 ITC Holdings 29,674 (208) 13,970 ITT Corp 607,276 (2,920) (176) ITT Educational Services Inc (3,001) 2,144 1,899 Ixia 22,218 (3,665) 38,266 IXYS Corp 438,146 (9,184) 2,473 j2 Global Inc 117,245 1,559 (28,415) Jabil Circuit Inc (535,907) (20,664) 132 Jack Henry & Associates Inc 7, United States continued 1,577 Jack in the Box Inc 90,678 (2,795) 13,771 Jacobs Engineering Group Inc 756,166 10,316 (7,333) JAKKS Pacific Inc (64,457) (5,318) (14,100) Jamba Inc (150,165) 32,378 1,925 Janus Capital Group Inc 22,638 1,136 (52,665) Janus Capital Group Inc (619,340) (15,086) (1,060) JB Hunt Transport Services Inc (82,320) (579) (4,558) JC Penney Co Inc (41,387) (3,521) 17,433 JDS Uniphase Corp 191,240 2,908 (3,625) JetBlue Airways Corp (34,873) (1,317) 6,231 JGWPT Holdings Inc 'A' 66,609 (26,545) (14,792) Jive Software Inc (122,034) 6,052 (207) JM Smucker Co/The (21,325) (497) 6,076 John B Sanfilippo & Son Inc 156,214 17,966 9,342 John Bean Technologies Corp 271,759 (16,909) (8,598) John Wiley & Sons Inc 'A' (472,632) (2,923) 1,487 Johnson Controls Inc 71,748 5,383 2,988 Johnson Outdoors Inc 'A' 73,535 4,751 (2,921) Jones Lang LaSalle Inc (352,389) (5,636) 349 Jones Lang LaSalle Inc 42, Jos A Bank Clothiers Inc 43,281 (68) 5,530 Journal Communications Inc 'A' 46,010 (3,217) (14,403) Joy Global Inc (826,156) 15,207 4,901 JPMorgan Chase & Co 273,574 11,321 (9,263) JTH Holding Inc 'A' (254,825) (3,798) 313 Juniper Networks Inc 7, ,370 K12 Inc 77,072 (640) 1,203 Kadant Inc 45,413 (1,160) 2,285 Kaiser Aluminum Corp 157,551 (9,253) (722) Kansas City Life Insurance Co (31,147) 4,043 1,447 Kansas City Southern 155,191 1,653 9,856 KapStone Paper and Packaging Corp 287,667 (4,953) (16,366) Kate Spade & Co (596,050) (12,046) (1,177) KB Home (19,538) 956 8,396 KBR Inc 203,183 (14,713) (30,984) KCAP Financial Inc (248,492) 5,272 (47,514) Kearny Financial Corp (669,947) 21,381 (13,994) Kellogg Co (958,169) (17,467) (448) Kelly Services Inc 'A' (7,970) 3,306 (180) Kemper Corp (6,356) 671 (3,167) Kennametal Inc (142,800) 4,237 (12,427) Key Energy Services Inc (102,398) (2,456) 4,957 Key Tronic Corp 52, ,741 KeyCorp 23,956 1,027 (12,190) KEYW Holding Corp/The (132,749) 119,706 15,455 Kforce Inc 338,619 1,236 4,427 Kimball International Inc 'B' 71,850 (11,289) 19,691 Kinder Morgan Inc/DE 658,861 8,535 (204) Kindred Healthcare Inc (5,171) (219) 18,566 Kinross Gold Corp 69,251 (5,312) 100 Kirby Corp 11, ,335 Kirkland's Inc 163,736 (8,775) 2,050 KMG Chemicals Inc 33,989 (595) (173) Knight Transportation Inc (4,244) (315) (377) Knightsbridge Tankers Ltd (5,176) 215 2,014 Knoll Inc 35, ,893 Knowles Corp 194,658 (14,140) (3,385) Kohl's Corp (185,227) (8,496) (171) Kona Grill Inc (3,499) (148) (38,200) Kopin Corp (124,532) 26,358 3,373 Koppers Holdings Inc 122,507 (1,210) (1,442) Korn/Ferry International (43,808) (588) 4,539 Korn/Ferry International 137,895 7,749 4,565 Kraft Foods Group Inc 268,239 8,034 2,096 Kraton Performance Polymers Inc 52,400 (3,375) (7,998) Krispy Kreme Doughnuts Inc (152,682) (2,855) 42 BlackRock Strategic Funds (BSF)

45 BlackRock Americas Diversified Equity Absolute Return Fund continued Contracts For Difference as at 31 May 2014 Holding Commitment Holding Commitment United States continued 810 Kroger Co/The 38, (11,033) Kronos Worldwide Inc (166,598) (1,876) (22,620) KVH Industries Inc (305,596) (5,529) 2,822 L&L Energy Inc 1,157 (3,584) 600 La-Z-Boy Inc 14,796 (626) (1,894) La-Z-Boy Inc (46,706) 4,571 (8,100) Laboratory Corp of America Holdings (827,901) (17,969) 7,284 Laclede Group 337,613 3,067 1,153 Ladder Capital Corp 'A' 20,535 (1,500) 5,230 Lakeland Financial Corp 190,895 (13,906) (6,807) Lam Research Corp (421,081) (8,693) 2,117 Lam Research Corp 130,958 12,962 8,279 Lamar Advertising Co 'A' 410,224 (2,566) 707 Lancaster Colony Corp 63, ,849 Lands' End Inc 50,237 1,153 (3,922) Landstar System Inc (256,499) (614) (1,713) Lannett (71,963) (9,378) 1,312 Lannett Co Inc 55,117 (2,335) 1,491 Laredo Petroleum Inc 41,122 (3,227) 3,857 Las Vegas Sands Corp 296,950 12,903 (24,583) Latam Airlines Group SA ADR (356,945) 1,966 7,764 Lattice Semiconductor Corp 62,306 2,576 (678) Layne Christensen Co (10,292) 1,562 (10,353) LCNB Corp (158,711) 17,201 (464) LDR Holding Corp (10,737) 53 (7,927) LeapFrog Enterprises Inc (55,013) 240 5,349 Lear Corp 472,531 19,620 (10,525) Legg Mason Inc (517,514) (10,557) (13,328) Leggett & Platt Inc (451,286) (12,697) (13,829) Leidos Holdings Inc (524,949) (6,025) (296) Lennar Corp 'A' (12,083) (690) 4,427 Lennox International Inc 375,719 1,007 3,788 Leucadia National Corp 96,746 1,439 (3,855) Level 3 Communications Inc (167,693) (15,308) 22,191 Lexington Realty Trust (Reit) 251,646 2,707 (4,136) Lexmark International Inc 'A' (179,296) (656) 1,504 Lexmark International Inc 'A' 65,198 (301) (1,610) Libbey Inc (43,663) (4,444) 8,957 Liberty Interactive Corp 'A' 260,111 3, Liberty Media Corp 'A' 52, Liberty Ventures 'A' 26, (13,269) Life Time Fitness Inc (705,911) (58,228) 18,203 LifeLock Inc 206,786 (25,942) (14,178) LifePoint Hospitals Inc (875,208) (38,509) (7,651) Lifeway Foods Inc (100,611) 7, ,642 Lihua International Inc 1 (566,196) 84,520 Limelight Networks Inc 189,325 10,142 (7,637) Limoneira Co (177,866) (8,883) (418) Lin Media Llc 'A' (10,555) (1,714) (1,246) Lincoln Educational Services Corp (4,859) 511 (165) Lincoln Electric Holdings Inc (10,862) (247) 2,172 Lincoln National Corp 104, (1,218) Lindsay Corp (103,372) (964) 5,935 Linear Technology Corp 274,078 11,573 (38) LinkedIn Corp 'A' (6,178) (283) 3,435 LinnCo LLC 95,218 (1,093) 8,670 Lions Gate Entertainment Corp 227,587 6,502 1,147 Liposcience Inc 3,670 (826) 6,687 Littelfuse Inc 587,453 (32,242) (8,449) Live Nation Entertainment Inc (200,410) (20,345) (24,817) LivePerson Inc (238,988) 61,546 2,113 LKQ Corp 59,122 (803) 1,049 LMI Aerospace 14, ,346 Loews Corp 534,211 1,002 (15,360) Logitech International SA (199,680) 21,657 2,786 LogMeIn Inc 118,656 (5,120) United States continued 1,830 Lorillard Inc 111,721 7,011 12,693 Louisiana-Pacific Corp 181,002 (1,855) 328 Lowe's Cos Inc 15, LPL Financial Holdings Inc (4,961) LPL Financial Holdings Inc (235,102) 572 (2,021) LSB Industries Inc (76,838) (5,819) 13,023 LSI Industries Inc 104,575 5,756 LTC Properties Inc (Reit) 227,880 6,487 1,242 Luby's Inc 6,285 (1,277) 1,890 Luminex Corp 32,584 (5,632) 1,873 Lumos Networks Corp 27,814 2,016 1,958 Lydall Inc 53,649 9,899 8,467 LyondellBasell Industries NV 'A' 841,535 35,138 (613) M&T Bank Corp (74,596) (1,821) (4,719) M/A-COM Technology Solutions Holdings Inc (84,753) 11,187 (6,490) M/I Homes Inc (150,763) (4,529) (29,973) Macatawa Bank Corp (152,862) 4,438 (10,270) Macerich Co/The (Reit) (675,355) (28,702) 2,413 Macquarie Infrastructure Co LLC 147,531 4,855 1,579 Macy's Inc 94,203 3,201 (5,553) Madison Square Garden Co/The 'A' (306,581) (20,984) 263 Magellan Health Services Inc 15, ,631 magicjack VocalTec Ltd 79,256 (16,077) 5,338 Magnachip Semiconductor Corp 66,138 (10,356) (16,204) Magnum Hunter Resources Corp (124,609) (99) 148 Main Street Capital Corp 4,625 (247) 1,434 MainSource Financial Group Inc 24, (1,923) Mallinckrodt Plc (148,571) (13,491) 31,042 Manhattan Associates Inc 1,008,865 (119,467) (3,909) Manitowoc Co Inc/The (106,520) 1,055 26,588 Manning & Napier Inc 447,742 43,654 (306) MannKind Corp (2,711) (336) 12,311 Manpowergroup Inc 1,009,502 28,021 (6,151) ManTech International Corp/VA 'A' (181,947) 6,140 8,769 Marathon Oil Corp 321,121 3,508 2,587 Marathon Petroleum Corp 231,278 5,272 9,057 Marcus & Millichap Inc 186,665 29,130 9,001 Marcus Corp/The 152,297 21, Marin Software Inc 5,524 (116) (3,352) Markel Corp (2,134,185) (34,140) (8,050) MarketAxess Holdings Inc (434,459) 3,799 (487) Marketo Inc (11,688) 517 7,005 Marlin Business Services Corp 146,194 4, Marlin Midstream Partners LP 6, (7,149) Marrone Bio Innovations Inc (78,639) 24,135 (845) Marsh & McLennan Cos Inc (42,275) (1,822) (876) Martha Stewart Living Omnimedia Inc 'A' (4,126) 433 (982) Martin Marietta Materials Inc (120,992) (4,043) 1,073 Marvell Technology Group Ltd 16, Masco Corp 15, MasTec Inc 15,853 (333) 3,845 MasterCard Inc 'A' 294,911 13,919 1,231 Matador Resources Co 30,726 1,463 5,704 Materion Corp 191,883 2,127 8,767 Matrix Service Co 285,278 6,575 14,474 Matson Inc 357,797 (1,107) (2,918) Mattel Inc (113,335) (117) (7,998) Matthews International Corp 'A' (326,318) 156 (8,390) Mattress Firm Holding Corp (378,892) (5,900) (1,353) Maui Land & Pineapple Co Inc (10,743) 1, MAXIMUS Inc 6, ,515 MaxLinear Inc 'A' 13, (1,205) Maxwell Technologies Inc (20,678) (4,661) 86,652 Maxygen Inc 2,600 (216,630) The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 43

46 BlackRock Americas Diversified Equity Absolute Return Fund continued Contracts For Difference as at 31 May 2014 Holding Commitment Holding Commitment United States continued 163 MB Financial Inc 4, ,204 MBIA Inc 273,575 (9,140) (7,643) McClatchy Co/The 'A' (39,514) 7,567 (627) McCormick & Co Inc/MD (45,269) (1,078) (18,262) McDermott International Inc (135,321) 6,587 (1,476) McDonald's Corp (148,869) 2,421 7,541 MCG Capital Corp 25,639 (3,469) (13,508) McGrath RentCorp (464,810) (8,645) (995) McGraw-Hill Cos Inc/The (80,764) (1,777) 558 McKesson Corp 104,776 3,555 (1,394) MDC Holdings Inc (40,314) (1,080) 551 MDC Partners Inc 'A' 11,709 (1,209) (3,577) MDC Partners Inc 'A' (76,011) 8,709 3,475 Mead Johnson Nutrition Co 308,615 8,383 (13,618) MeadWestvaco Corp (553,980) (27,233) (5,939) Measurement Specialties Inc (379,086) (7,661) 922 Medallion Financial Corp 12, (354) MedAssets Inc (8,400) 33 1,756 MedAssets Inc 41,670 (1,375) 1,432 MedCath Corp 1,962 (9,150) (9,280) Media General Inc (166,762) (7,935) 19,809 Medical Action Industries Inc 139,257 1,981 (4,253) Medicines Co/The (117,681) (6,892) (291) Medidata Solutions Inc (11,273) 343 2,889 Medifast Inc 90,570 12,654 3,384 MEDNAX Inc 196,272 3,367 (3,261) Men's Wearhouse Inc/The (158,256) 3,037 22,527 Mentor Graphics Corp 478,699 17,414 (112) Mercantile Bank Corp (2,352) 82 (39,104) Mercer International Inc (348,026) (25,932) 2,011 Merchants Bancshares Inc 61,718 (3,399) 746 Merck & Co Inc 43,067 1,085 (3,479) Mercury General Corp (164,661) 1,670 (609) Meredith Corp (27,435) 122 2,634 Merge Healthcare Inc 6,006 (1,133) 3,815 Meridian Bioscience Inc 78,131 (4,891) 5,159 Meridian Interstate Bancorp Inc 133,205 (6,888) 838 Merit Medical Systems Inc 11, (2,966) Meritor Inc (41,227) (1,559) (4,483) Mesa Laboratories Inc (362,899) 43,974 76,527 Metalico Inc 94,128 (54,334) 263 Methode Electronics Inc 8,158 (710) (2,072) Methode Electronics Inc (64,273) (3,714) 463 MetLife Inc 23, (1,073) Metro Bancorp Inc (23,552) (2,314) (110) MGE Energy Inc (4,159) 166 (7,630) MGIC Investment Corp (65,542) (411) 346 Michael Kors Holdings Ltd 32,784 1,204 6,273 Micrel Inc 67,184 1,882 15,396 MicroFinancial Inc 119,165 (5,543) 408 Micron Technology Inc 11, ,234 MICROS Systems Inc 651,705 14,520 22,807 Microsemi Corp 557,859 2,184 (1,748) MicroStrategy Inc 'A' (247,587) (26,538) (536) Mid-America Apartment Communities Inc (Reit) (38,437) (3) 562 Middleburg Financial Corp 10,065 (321) 911 Middleby Corp 216,244 6,196 1,525 MidSouth Bancorp Inc 28, (1,008) Midstates Petroleum Co Inc (5,846) (605) 588 MidWestOne Financial Group Inc 13, (3,151) Millennial Media Inc (12,572) 8,240 (10,673) Miller Energy Resources Inc (57,421) 15, Minerals Technologies Inc 7, ,102 Mistras Group Inc 71,966 1,908 (852) Mitcham Industries Inc (11,511) 571 United States continued (6,527) Mitek Systems Inc (21,539) 9,651 20,708 MKS Instruments Inc 602,603 12,576 3,319 Mobile Mini Inc 145,239 7,524 (6,176) Mobile Mini Inc (270,262) (2,285) (3,797) Model N Inc (41,881) (4,647) (6,577) Modine Manufacturing Co (100,299) (2,294) 2,489 Moelis & Co 75,690 1,761 (319) Mohawk Industries Inc (43,113) (976) (8,085) Molina Healthcare Inc (350,970) (28,191) (6,689) Molycorp Inc (18,595) 13,414 (4,262) MoneyGram International Inc (57,409) 12,594 1,930 Monolithic Power Systems Inc 76,409 2,973 (8,599) Monro Muffler Brake Inc (461,766) 60,945 2,883 Monsanto Co 350,573 17,875 1,984 Monster Beverage Corp 137,035 (2,496) 9,290 Monster Worldwide Inc 52,303 (21,739) 229 Montpelier Re Holdings Ltd 7, (2,590) Montpelier Re Holdings Ltd (81,818) (830) (1,845) Moody's Corp (156,899) (3,954) (7,861) Moog Inc 'A' (568,036) (21,153) 3,501 Morgan Stanley 108,391 4,936 (549) Morgans Hotel Group Co (4,343) 33 (76,603) MoSys Inc (267,344) 123,207 2,156 Motorcar Parts of America Inc 53, (3,181) Motorola Solutions Inc (213,222) (2,096) 15,152 Movado Group Inc 584,110 (85,847) 9,041 Move Inc 119,251 11,822 15,452 MRC Global Inc 446,408 9,463 (8,875) MSA Safety Inc (482,623) (12,367) (8,529) MSC Industrial Direct Co Inc 'A' (784,156) (19,835) (1,039) MSCI Inc (44,926) 233 (5,476) MTS Systems Corp (366,782) 14,046 6,803 Mueller Industries Inc 197,627 2, Mueller Water Products Inc 'A' 7,174 (178) (9,041) Multi-Color Corp (315,260) 287 (2,123) Multi-Fineline Electronix Inc (22,652) 8,131 (2,190) Murphy Oil Corp (134,816) (1,007) 7,218 Murphy USA Inc 366,169 67,560 (2,983) Murphy USA Inc (151,328) (12,406) (100) MWI Veterinary Supply Inc (13,925) 179 1,246 MWI Veterinary Supply Inc 173, Mylan Inc/PA 36,745 2,688 6,950 MYR Group Inc 175,348 4, Myriad Genetics Inc 27,411 (3,566) (23,277) Nabors Industries Ltd (604,504) (10,372) 862 NACCO Industries Inc 'A' 46, ,007 NanoString Technologies Inc 15,478 (5,287) (10,970) NASB Financial Inc (253,297) 21,940 (6,038) Nathan's Famous Inc (297,613) ,926 National American University Holdings Inc 54,148 (7,485) 33,862 National Bank Holdings Corp 'A' 671,822 (7,450) (16,529) National Bankshares Inc (528,928) 58,843 7,735 National Beverage Corp 148,744 (15,702) 5,745 National CineMedia Inc 90,197 2,184 (661) National Fuel Gas Co (49,416) (264) 22,735 National Instruments Corp 645,901 2,474 (4,636) National Interstate Corp (134,444) 4,636 (3,802) National Oilwell Varco Inc (310,814) (1,072) 700 National Oilwell Varco Inc 57, National Penn Bancshares Inc 1, ,150 National Research Corp 'B' 46, ,568 National Retail Properties Inc (Reit) 55, ,062 National Western Life Insurance Co 'A' 256,898 5,108 1,209 Nationstar Mortgage Holdings Inc 42,762 5,233 (1,533) Natural Gas Services Group Inc (46,588) 1, BlackRock Strategic Funds (BSF)

47 BlackRock Americas Diversified Equity Absolute Return Fund continued Contracts For Difference as at 31 May 2014 Holding Commitment Holding Commitment United States continued (1,589) Natural Grocers by Vitamin Cottage Inc (32,797) 33,764 6,205 Nature's Sunshine Products Inc 93,447 7,621 10,046 Natus Medical Inc 248,438 (11,854) (1,855) Navigant Consulting Inc (31,275) 1, Navigators Group Inc/The 18, (7,746) Navistar International Corp (268,864) (6,184) (43,513) NBT Bancorp Inc (1,001,669) 54,417 1,589 NCI Building Systems Inc 26, ,695 NCR Corp 610,205 (16,871) (3,710) Nektar Therapeutics (44,594) (3,532) 7,654 Nelnet Inc 'A' 316,646 (10,185) 8,330 Neogen Corp 310,292 (24,732) (6,515) Neogen Corp (242,684) 50, NeoGenomics Inc 2,865 (25) (3,999) Neonode Inc (14,436) 12,437 7,890 Net 1 UEPS Technologies Inc 87,974 5, Net Element Inc 1, ,969 NetApp Inc 294,375 12,678 (290) Netflix Inc (120,599) (9,950) (14,736) NETGEAR Inc (488,056) 11, NetSuite Inc 62,470 2,691 (2,629) NetSuite Inc (214,684) (25,975) (263) NeuStar Inc 'A' (7,503) 114 (8,764) New Jersey Resources Corp (477,375) (23,881) 7,762 New Jersey Resources Corp 422,796 52,865 6,424 New Mountain Finance Corp 91,670 (3,662) 20,445 New Residential Investment Corp (Reit) 130, New York Community Bancorp 7, (56,922) New York Mortgage Trust Inc (Reit) (450,822) (18,784) (40,733) New York Times Co/The 'A' (601,626) 45,117 11,089 NewBridge Bancorp 83,500 4, Newell Rubbermaid Inc 21,900 (38) (3,159) Newfield Exploration Co (115,082) (3,541) 637 Newfield Exploration Co 23,206 1, NewMarket Corp 363,825 11,818 (273) NewMarket Corp (106,571) (1) 502 Newmont Mining Corp 11,441 (753) 446 Newpark Resources Inc 5,044 (9) 34,723 Newport Corp 643,764 (89,933) (5,891) News Corp 'A' (100,854) (1,473) (21,027) NewStar Financial Inc (283,865) 27,349 (4,487) Nexstar Broadcasting Group Inc 'A' (207,165) (38,510) (639) NGP Capital Resources Co (4,083) 578 6,341 NIC Inc 107,924 (1,293) (4,309) Nicholas Financial Inc (62,868) 5,146 (5,697) Nielsen NV (271,405) (9,654) 4,680 NIKE Inc 'B' 358,441 17,082 1,895 Nimble Storage Inc 52,131 7,980 (9,005) NL Industries Inc (78,974) 16,620 12,531 NMI Holdings Inc 'A' 133,455 (16,242) 3,633 NN Inc 88,645 18,892 1,123 Noble Corp Plc 35, ,398 Noble Energy Inc 388,656 12,847 (600) Noodles & Co (19,632) 294 (2,464) Noranda Aluminum Holding Corp (7,663) 2,668 8,615 Nord Anglia Education Inc 154, ,388 Nordic American Tankers Ltd 28,188 (474) (5,162) Nordson Corp (426,226) (380) (1,766) Nordstrom Inc (120,450) (11,859) (7,720) Norfolk Southern Corp (777,790) (34,104) 257 Nortek Inc 21,927 1,566 95,041 North Atlantic Drilling Ltd 947, ,813 (4,307) Northern Oil and Gas Inc (65,466) (520) (1,232) Northern Trust Corp (74,598) (968) United States continued 609 Northrim BanCorp Inc 15,079 (359) 1,488 Northrop Grumman Corp 178,694 1,339 1,872 NorthStar Realty Finance Corp (Reit) 30,869 1, Northwest Bancshares Inc 10, ,498 Northwest Natural Gas Co 339,210 26,618 (2,804) Northwest Pipe Co (102,318) (4,241) 30,106 NorthWestern Corp 1,429,132 25,332 (886) Norwegian Cruise Line Holdings Ltd (29,477) 583 3,967 Norwegian Cruise Line Holdings Ltd 131,982 2,460 8,941 Novatel Wireless Inc 14,753 (3,934) (2,405) NPS Pharmaceuticals Inc (65,921) (1,178) 199 NRG Energy Inc 7, (922) NRG Yield Inc 'A' (43,325) (8,842) 1,274 Nu Skin Enterprises Inc 'A' 94,518 (3,971) (26,678) Nuance Communications Inc (434,585) 8, Nucor Corp 33,144 (184) (10,029) Numerex Corp 'A' (115,534) 12,637 (1,829) NuVasive Inc (61,509) (260) (2,948) Nuverra Environmental Solutions (50,352) (5,395) (2,911) NVE Corp (159,086) (15) (19,822) NVIDIA Corp (374,834) (3,643) (84) NVR Inc (94,109) 33 10,707 NXP Semiconductor NV 664,691 19,072 (4,187) NxStage Medical Inc (57,781) 42 1,917 Oasis Petroleum Inc 94,987 2,837 1,074 Ocean Rig UDW Inc 19,375 1,452 8,168 Oceaneering International Inc 592,997 (2,784) (113) OceanFirst Financial Corp (1,863) Ocera Therapeutics Inc 925 (969) (1,690) Oclaro Inc (3,600) 1,393 9,641 Ocwen Financial Corp 336,953 1,368 (66,982) Odyssey Marine Exploration Inc (93,105) 73,010 (81,280) Office Depot Inc (422,656) 10,512 (3,039) OFG Bancorp (54,915) (2,402) 395 Oi SA ADR Oil-Dri Corp of America 6,594 (174) 2,442 Old Republic International Corp 41,612 1,249 (4,151) Olin Corp (112,866) (340) 286 Olympic Steel Inc 6,893 (861) 20,584 OM Group Inc 624,107 (12,406) 12,830 Omega Protein Corp 185,907 22,452 1,457 OmniAmerican Bancorp Inc 35,026 2,625 1,028 Omnicare Inc 65, ,401 Omnicell Inc 63,867 (5,042) 11,108 Omnicom Group Inc 785,336 17, OmniVision Technologies Inc 7,975 1,171 (1,813) OmniVision Technologies Inc (41,191) (5,827) 2,816 OMNOVA Solutions Inc 26,611 (2,196) 2,925 ON Semiconductor Corp 25, ,084 One Gas Inc 76,129 2,082 4,130 One Liberty Properties Inc (Reit) 88,754 (4,213) 2,285 OneBeacon Insurance Group Ltd 'A' 35, (1,440) ONEOK Inc (93,240) (3,294) (824) OpenTable Inc (56,609) 611 1,682 Oplink Communications Inc 28,459 (1,362) 6,380 Oppenheimer Holdings Inc 'A' 151,334 (28,519) (1,975) Oracle Corp (82,713) 99 (1,100) Oramed Pharmaceuticals Inc (9,009) 6,930 (39,946) ORBCOMM Inc (258,451) 49,134 4,897 Orbital Sciences Corp 129,281 (2,605) 7,835 Orbitz Worldwide Inc 58,684 (11,988) 377 Orion Marine Group Inc 4,260 (26) 2,416 Oritani Financial Corp 36, (3,704) Ormat Technologies Inc (108,675) (2,719) (4,142) Orrstown Financial Services Inc (67,515) (1,036) The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 45

48 BlackRock Americas Diversified Equity Absolute Return Fund continued Contracts For Difference as at 31 May 2014 Holding Commitment Holding Commitment United States continued 3,686 Orthofix International NV 117,030 29,304 3,572 OSH 1 Liquidating Corp* (679) 218 OSI Systems Inc 12,568 (687) 19,553 OTC HC2 Holdings Inc 79,385 7, Outerwall Inc 67,237 5,051 (1,553) Outerwall Inc (112,158) (1,251) (289) Overstock.com Inc (4,417) 1,649 (358) Owens Corning (14,642) 333 1,522 Owens-Illinois Inc 50, (326) Oxford Industries Inc (21,148) 4,686 4,392 Oxford Industries Inc 284,909 (4,167) 8,174 PACCAR Inc 517,005 6,998 2,884 Pacific Biosciences of California Inc 14,189 (3,144) 11,586 Pacific Continental Corp 161,161 (2,619) (2,903) Pacific Mercantile Bancorp (19,131) (1,074) 9,099 Pacific Premier Bancorp Inc 130,116 (18,738) (137) Pacira Pharmaceuticals Inc/DE (10,624) (321) 11,957 Packaging Corp of America 831,251 30,077 (6,347) PacWest Bancorp (257,815) (2,457) (6,064) Pall Corp (515,804) 3, Palmetto Bancshares Inc 2,700 (92) (4,037) Pandora Media Inc (100,239) (4,696) 63 Panhandle Oil and Gas Inc 'A' 3, ,612 Pantry Inc/The 213,143 26,359 2,919 Papa John's International Inc 125,692 (239) 1,387 PAREXEL International Corp 69,503 5, Park National Corp 6, ,625 Park Sterling Corp 30, (32) Park-Ohio Holdings Corp (1,719) ,616 Parker Drilling Co 185,146 (22,607) (316) Parker Hannifin Corp (39,216) 568 (3,243) Parkervision Inc (16,345) (1,560) 1,210 Parkway Properties Inc/Md (Reit) 24, (20,373) Parkway Properties Inc/Md (Reit) (407,867) (41,765) (985) Patrick Industries Inc (37,440) 1,385 (188) Patriot Transportation Holding Inc (6,439) 298 4,715 Pattern Energy Group Inc 145,316 15,005 (395) Patterson Cos Inc (15,480) 664 (4,479) Patterson-UTI Energy Inc (148,344) 244 1,636 Paycom Software Inc 21,965 (1,113) 2,219 Paylocity Holding Corp 41,961 (3,032) (4,875) Paylocity Holding Corp (92,186) (779) 1,233 PBF Energy Inc 'A' 39,579 2,569 (325) PC Connection Inc (6,864) 61 (6,679) PC-Tel Inc (47,221) 9,964 (592) PDF Solutions Inc (11,929) (373) (7,177) Peabody Energy Corp (118,421) 16,522 5,837 Pegasystems Inc 123,336 6,543 (112,912) Pendrell Corp (188,563) (6,840) (1,854) Penford Corp (21,914) 5,488 (4,397) Penns Woods Bancorp Inc (204,592) 6, PennyMac Financial Services Inc 'A' 8,846 (1,140) 6,669 Penske Automotive Group Inc 310,309 6,913 4,122 People's United Financial Inc 59, ,962 Peoples Bancorp Inc/OH 121,321 (4,098) (3,435) Pep Boys-Manny Moe & Jack/The (35,415) 8,553 (2,742) Pepco Holdings Inc (75,844) 55 (2,881) Peregrine Semiconductor Corp (18,035) 2,132 14,407 Performant Financial Corp 136,434 21,899 19,695 Pericom Semiconductor Corp 177,649 9,651 (13,891) Pernix Therapeutics Holdings (99,460) (47,507) 1,427 Perrigo Co PLC 197,054 12,106 7,776 Perry Ellis International Inc 131,570 19,518 4,442 Petroleo Brasileiro SA ADR 67,741 (2,830) United States continued 1,494 PetroQuest Energy Inc 9, ,390 Pfizer Inc 750,528 (9,104) (34,034) PG&E Corp (1,550,249) (80,130) 24,784 PGT Inc 212,895 (75,096) 934 PH Glatfelter Co 24, ,822 PHH Corp 296,732 1,583 1,462 PHI Inc 65,176 (226) (1,361) Phoenix Cos Inc/The (66,390) 4,450 16,509 Piedmont Natural Gas Co Inc 588,711 11,809 (149) Piedmont Natural Gas Co Inc (5,313) (167) (52,197) Piedmont Office Realty Trust Inc 'A' (Reit) (969,820) (64,050) (1,329) Pier 1 Imports Inc (23,550) 2,168 11,016 Pike Corp 99,695 (20,490) 32,283 Pilgrim's Pride Corp 812,563 34,787 (9,433) Pinnacle Entertainment Inc (232,335) (4,222) (766) Pinnacle West Capital Corp (42,145) (251) (545) Pioneer Natural Resources Co (114,047) (3,793) (743) Piper Jaffray Cos (33,205) (1,545) (17,842) Pitney Bowes Inc (492,082) (25,348) 1,646 Plains GP Holdings LP 'A' 45, ,452 Planet Payment Inc 47,731 (712) 10,548 Plantronics Inc 478,879 10,779 (1,237) Plexus Corp (51,818) (2,324) (33,595) PLX Technology Inc (193,843) 9, Ply Gem Holdings Inc 10,029 (258) (32,963) PMC - Sierra Inc (235,026) 16,152 (14,819) PMFG Inc (74,688) 24, Polaris Industries Inc 49, ,865 Polycom Inc 36,729 (74) 2,252 PolyOne Corp 90,305 5,461 (147) Polypore International Inc (6,539) (194) 14,669 Pool Corp 851,389 (1,844) 2,868 Popeyes Louisiana Kitchen Inc 126,393 20, Popular Inc 6, Portfolio Recovery Associates Inc 42, Portland General Electric Co 6,716 (69) 153 Post Holdings Inc 7, ,546 Potlatch Corp (Reit) 666,969 25,746 (923) Power Integrations Inc (46,842) (1,148) (37) Power Solutions International Inc (2,922) (157) 7,160 Pozen Inc 61,791 2,649 3,769 PPG Industries Inc 757,757 24,197 (14,597) PPL Corp (509,143) (16,692) (2,953) Precision Drilling Corp (37,621) (1,132) 9,221 Preferred Bank/Los Angeles CA 209,593 (16,598) (2,990) Preformed Line Products Co (158,171) 35,647 21,710 Premier Exhibitions Inc 20,160 (1,767) 494 Premier Inc 'A' 14, ,924 Premiere Global Services Inc 397,391 43,091 8,962 Prestige Brands Holdings Inc 307,486 50,623 6,128 PRGX Global Inc 39,035 (3,922) 157 Priceline Group Inc 201,112 22,721 (6,378) PriceSmart Inc (582,503) 9,168 9,277 Primerica Inc 420,619 9,060 6,585 Principal Financial Group Inc 308,046 6,581 3,395 ProAssurance Corp 154,506 3,834 (20,584) Procera Networks Inc (196,371) 46,726 4,553 Progress Software Corp 99,756 (2,732) (16,887) Progressive Corp/The (423,695) 3, Prologis Inc (Reit) 37, (4,698) Proofpoint Inc (153,672) 2,216 (425) PROS Holdings Inc (9,860) (956) 5,652 Prosperity Bancshares Inc 329,625 (3,833) * Investments which are less than 0.5 have been rounded down to zero. 46 BlackRock Strategic Funds (BSF)

49 BlackRock Americas Diversified Equity Absolute Return Fund continued Contracts For Difference as at 31 May 2014 Holding Commitment Holding Commitment United States continued 24,352 Protective Life Corp 1,277, (122) Proto Labs Inc (8,062) 71 (72) Providence Service Corp/The (2,930) (883) 29,594 Provident Financial Holdings Inc 430,593 (38,768) 10,748 PS Business Parks Inc (Reit) 908,958 (3,355) 18,083 PTC Inc 664,912 28,906 (2,043) Public Service Enterprise Group Inc (78,799) (1,240) (10,810) Public Storage (Reit) (1,856,293) (23,336) 21,656 PulteGroup Inc 426,840 14,865 (912) Puma Biotechnology Inc (68,938) (12,458) (37,269) Pure Cycle Corp (213,551) 10,808 (3,191) PVH Corp (419,840) (3,095) 4,093 Q2 Holdings Inc 53,700 (4,937) 14,674 QAD Inc 'A' 314,024 32,430 (2,362) QEP Resources Inc (74,852) (921) (15,942) QIAGEN NV (364,753) (4,504) 2,715 Qlik Technologies Inc 58,916 (1,765) 13,683 QLogic Corp 135,325 (23,398) 497 QTS Realty Trust Inc 'A' (Reit) 14, (1,345) Quaker Chemical Corp (100,983) 5,419 4,268 QUALCOMM Inc 341, (11,132) Quality Systems Inc (176,999) (7,870) (924) Qualys Inc (22,703) 2,088 (371) Quanex Building Products Corp (6,730) 297 1,111 Quanta Services Inc 37, (2,641) Quest Diagnostics Inc (156,321) (4,437) 38,022 Questar Corp 911,768 15,751 (8,287) Quidel Corp (186,872) 9,949 (10,890) Quiksilver Inc (66,974) 21,998 11,504 Quiksilver Inc 70,750 (702) 25,032 QuinStreet Inc 145,436 (24,281) 1,364 Quintiles Transnational Holdings Inc 69,182 2,046 (1,037) Quintiles Transnational Holdings Inc (52,597) 382 (286) Radian Group Inc (4,164) (173) 19,862 Radisys Corp 64,750 (12,910) (233) RAIT Financial Trust (Reit) (1,831) 37 3,054 Ralph Lauren Corp 467,506 14,588 (7,959) Rambus Inc (95,110) 1, Ramco-Gershenson Properties Trust (Reit) 5, (1,676) Range Resources Corp (153,362) (3,246) 8,359 Raymond James Financial Inc 405,411 1,755 38,745 Rayonier Inc (Reit) 1,831,089 65,310 (876) Raytheon Co (85,112) (1,020) 7,224 RBC Bearings Inc 430,334 (8,019) (3,781) RCS Capital Corp 'A' (104,356) 17,407 2,762 RealD Inc 32, (1,810) RealNetworks Inc (14,082) (320) 13,768 Realogy Holdings Corp 515,680 (11,806) (15,655) RealPage Inc (333,138) (36,994) (1,353) Realty Income Corp (Reit) (58,707) (284) 8,025 Red Lion Hotels Corp 46,625 (401) 293 Redwood Trust Inc (Reit) 5,693 (18,702) Redwood Trust Inc (Reit) (363,380) (230) 4,080 Regado Bioscience Inc 24,521 (1,242) 27,989 Regal Entertainment Group 'A' 547,745 13,544 4,187 Regional Management Corp 59,539 (20,521) 5,279 Regions Financial Corp 53,635 (824) (7,981) Regis Corp (109,260) (456) (6,178) Reinsurance Group of America Inc (485,220) (7,112) (18,869) Reis Inc (347,756) 21, Reliance Steel & Aluminum Co 34, ,179 Renewable Energy Group Inc 11,554 (1,096) United States continued 2,327 Rent-A-Center Inc/TX 66,110 7,609 (62,367) Rentech Inc (147,498) (33,990) (2,267) Rentrak Corp (117,657) 25,016 (4,206) Repros Therapeutics Inc (68,474) ,110 Republic Airways Holdings Inc 159,864 15,714 (6,885) Republic Bancorp Inc/KY 'A' (161,316) (523) (1,280) Republic Services Inc (45,248) (447) (3,545) ResMed Inc (177,711) (389) 637 Resolute Forest Products Inc 9, (6,502) Resolute Forest Products Inc (98,830) 15,262 9,461 Resources Connection Inc 117,411 (20,128) (2,457) Restoration Hardware Holdings Inc (159,705) (4,310) (810) RetailMeNot Inc (21,060) 9, Revance Therapeutics Inc 14,610 (2,033) 9,622 RevettMining Co Inc 7, (1,629) Revlon Inc 'A' (50,027) (8,281) (15,259) Revolution Lighting Technologies Inc (36,622) 21, REX American Resources Corp 67,124 19,550 5,213 Rex Energy Corp 103,374 9,428 (26,164) Rf Micro Devices Inc (245,680) (23,287) 14,431 Rice Energy Inc 452,845 55,250 (31,517) Richardson Electronics Ltd/United States (325,571) 16,775 (60) RigNet Inc (2,820) ,493 RingCentral Inc 'A' 154,164 (56,465) (6,804) Rite Aid Corp (56,745) (8,875) (10,999) Riverbed Technology Inc (222,400) (8,872) (857) RLI Corp (38,428) (640) 111 RLI Corp 4, ,408 RLJ Lodging Trust (Reit) 626,080 21,736 (84) Roadrunner Transportation Systems Inc (2,193) (128) (3,559) Robert Half International Inc (163,678) (2,635) 647 Rock Tenn Co 'A' 65, Rocket Fuel Inc 10,581 (10,512) (5,713) Rockwell Automation Inc (687,217) 3,008 (24,283) Rockwell Collins Inc (1,913,015) (23,267) (799) Rofin-Sinar Technologies Inc (18,800) 453 (1,011) Rogers Corp (62,793) (1,342) (778) Roper Industries Inc (110,040) (228) (3,330) Rosetta Resources Inc (155,678) (4,895) 6,869 Ross Stores Inc 469,908 (2,086) 7,300 Roundy's Inc 38,471 (6,935) (3,958) Rouse Properties Inc (Reit) (65,386) 4,132 (12,499) Rovi Corp (303,976) (18,162) 266 Rowan Cos Plc 'A' 8, Royal Caribbean Cruises Ltd 3, Royal Gold Inc 50,804 (2,058) (3,415) Royal Gold Inc (210,808) 4,466 (6,285) RPC Inc (140,470) (1,523) 32,028 RPX Corp 527,181 26,263 13,169 RR Donnelley & Sons Co 209,914 10,389 8,045 RSP Permian Inc 214,721 (5,725) 7,314 RTI International Metals Inc 195, ,004 RTI Surgical Inc 127,517 9,001 3,217 Rubicon Project Inc/The 40,052 (304) (5,580) Rubicon Technology Inc (48,044) 30,734 (670) Ruby Tuesday Inc (5,179) (40) (11,965) Rudolph Technologies Inc (114,625) 20,340 (11,712) Rush Enterprises Inc 'A' (392,938) (35,216) 4,973 Ruth's Hospitality Group Inc 60,372 (1,989) 2,843 Ryder System Inc 246,630 28,032 2,739 Ryland Group Inc/The 104, The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 47

50 BlackRock Americas Diversified Equity Absolute Return Fund continued Contracts For Difference as at 31 May 2014 Holding Commitment Holding Commitment United States continued United States continued 1,209 Ryman Hospitality Properties (Reit) 56,049 1,355 (555) SI Financial Group Inc (6,294) 172 (200) Sabre Corp (3,760) (245) 13,314 Sierra Bancorp 213,423 3,142 3,262 Safety Insurance Group Inc 169,918 (6,338) 5,474 Sigma Designs Inc 18,776 (8,375) (3,790) Saga Communications Inc 'A' (177,069) 12,712 (8,409) Sigma-Aldrich Corp (826,857) (22,325) 11,199 Salem Communications Corp 'A' 94,520 (11,199) (1,216) Signet Jewelers Ltd (129,455) (9,313) (2,232) Salesforce.com Inc (120,550) (5,781) (5,990) Silgan Holdings Inc (292,013) 1, Salix Pharmaceuticals Ltd 27,613 1,063 (10,659) Silicon Graphics International Corp (96,038) 34,857 (1,352) Salix Pharmaceuticals Ltd (154,905) (7,065) 2,745 Silicon Image Inc 14,494 (4,063) 4,046 Sally Beauty Holdings Inc 103,537 (2,509) (1,127) Silver Spring Networks Inc (13,558) 5,263 3,713 Sanderson Farms Inc 339,777 36, Silvercrest Asset Management 'A' 9, (1,000) SanDisk Corp (96,350) (6,945) (1,698) Simon Property Group Inc (Reit) (279,049) 14, SanDisk Corp 35,360 2,947 3,332 Simplicity Bancorp Inc 56,744 (1,366) (665) Sandy Spring Bancorp Inc (15,907) ,829 Simpson Manufacturing Co Inc 396,153 8,338 (10,532) Sanmina Corp (216,222) 2,003 1,402 SINA Corp/China 64,254 (1,013) 11,822 Santander Consumer USA (5,574) Sinclair Broadcast Group Inc 'A' (168,558) (19,903) Holdings Inc 233,957 (19,583) (7,230) Sirius XM Holdings Inc (23,895) (1,150) (2,606) Sapiens International Corp NV (20,666) 142 (3,470) Sirona Dental Systems Inc (263,304) (4,138) 324 Sapient Corp 5, ,961 Six Flags Entertainment Corp 119,595 (210) 2,210 SBA Communications Corp 'A' 223,144 1,368 5,513 Sizmek Inc 53,311 (13,946) (20,461) SCANA Corp (1,056,401) (56,619) (595) Skechers U.S.A. Inc 'A' (26,614) (1,543) 1,347 ScanSources Inc 50,459 (2,115) 3,970 Skechers U.S.A. Inc 'A' 177,578 26,461 (1,457) Schawk Inc (29,461) (7,673) (6,123) Skilled Healthcare Group Inc 'A' (40,106) (9,958) 261 Schlumberger Ltd 27,076 1,107 (877) SkyWest (10,235) 43 (8,745) Scholastic Corp (278,353) 25,550 7,909 Skyworks Solutions Inc 341,352 18,349 4,855 Schweitzer-Mauduit International Inc 203,036 1, SL Industries Inc 23,403 2,113 10,928 Sciclone Pharmaceuticals Inc 55,514 4,153 8,546 SLM Corp 73,923 (1,818) 2,138 Science Applications International 82,869 3,824 3,638 SM Energy Co 277,070 (8,112) (1) Science Applications International (39) (1) 2,814 Snap-on Inc 328,731 8,048 (13,242) Scientific Games Corp 'A' (118,251) 62,717 13,640 Snyder's-Lance Inc 375,782 11,209 1,101 Scientific Games Corp 'A' 9,832 (3,446) (11,833) Sociedad Quimica y Minera (3,615) SciQuest Inc (61,310) 45,657 de Chile SA ADR (365,876) (21,381) 40,845 Scorpio Bulkers Inc 378,225 (8,001) (1,170) SodaStream International Ltd (43,828) 3,972 (552) Scorpio Tankers Inc (5,007) (61) (164) Sohu.com Inc (9,646) (157) 6,841 Scorpio Tankers Inc 62, (10,629) Solar Capital Ltd (223,209) 10,629 (9,651) Scotts Miracle-Gro Co/The 'A' (583,886) 1,472 (2,773) Solar Senior Capital Ltd (46,309) 2, Seaboard Corp 674,750 32,667 (3,167) SolarCity Corp (172,506) 25,668 1,797 Seachange International Inc 17,413 (683) 1,737 SolarWinds Inc 67, ,888 Seacoast Banking Corp of Florida 116,175 (4,791) (1,168) Solera Holdings Inc (76,364) 12 (3,926) SEACOR Holdings Inc (315,219) 18,731 (458) Sonic Corp (9,494) ,608 Seadrill Ltd 400,664 21,649 2,801 Sonoco Products Co 118,258 1, Seagate Technology Plc 41,634 1,838 30,825 Sonus Networks Inc 114,052 17,555 (59) Sears Canada Inc (776) Sotheby's 37,290 (1,846) (1,005) Sears Holdings Corp (41,788) (2,132) (383) South Jersey Industries Inc (21,908) (1,099) 821 Seaspan Corp 18, South Jersey Industries Inc 29, ,379 SeaWorld Entertainment Inc 104,377 4,975 (22,351) Southern Co/The (970,927) 25,335 SEI Investments Co 834,028 51,894 (7,215) Southern Copper Corp (212,915) 4,238 (14,651) Select Comfort Corp (274,706) (14,491) 12,287 Southern Copper Corp 362,589 17,517 (5,608) Select Income (Reit) (161,510) 3,645 1,841 Southside Bancshares Inc 47,756 (6,324) (11,200) Select Medical Holdings Corp (167,776) (11,091) 4,540 Southwest Airlines Co 120,174 3, Selective Insurance Group Inc 17, Southwest Gas Corp 46,007 (1,989) 15,587 SemGroup Corp 'A' 1,061,475 35,764 1,700 Sovran Self Storage Inc (Reit) 130,900 4,628 1,763 Semtech Corp 46,120 2,523 7,481 Spansion Inc 'A' 145,057 23,424 1,278 Seneca Foods Corp 'A' 38,928 (83) (17,791) Spansion Inc 'A' (344,967) (28,537) (8,916) Senior Housing Properties Trust (Reit) (213,003) (364) 13,332 Spark Networks Inc 61,727 (6,133) (14,074) Sensata Technologies Holding NV (606,871) (8,385) (1,806) Spartan Motors Inc (9,211) Sensient Technologies Corp 20, ,346 SpartanNash Co 31,712 (852) (215) Sensient Technologies Corp (11,804) (295) (1,041) Sparton Corp (31,074) 2,224 (4,068) Sequenom Inc (12,774) (1,666) (1,842) Spectranetics Corp (40,763) 2,788 6,631 Service Corp International/US 133,349 8, Spectrum Brands Holdings Inc 23,481 1,198 (1,259) ServiceNow Inc (65,921) (5,716) (88,398) Speed Commerce Inc (320,885) 63,614 7,178 SFX Entertainment Inc 53,045 (2,948) 11,790 Speedway Motorsports Inc 217,054 (16,034) (1,244) Shenandoah Telecommunications Co (34,708) 80 15,062 Spirit Aerosystems Holdings Inc 'A' 489,515 33,340 (4,705) Sherwin-Williams Co/The (955,727) (22,965) 45 Spirit Airlines Inc 2, (559) Ship Finance International Ltd (10,258) 100 1,707 Splunk Inc 74,357 (2,794) 798 Shutterfly Inc 32,830 1,944 3,945 Sportsman's Warehouse Holdings Inc 36, (1,355) Shutterstock Inc (91,679) 219 (7,220) Springleaf Holdings Inc (174,074) BlackRock Strategic Funds (BSF)

51 BlackRock Americas Diversified Equity Absolute Return Fund continued Contracts For Difference as at 31 May 2014 Holding Commitment Holding Commitment United States continued (15,795) Sprint Corp (149,579) 928 2,384 Sprouts Farmers Market Inc 64,392 (2,613) (2,788) SPS Commerce Inc (160,840) (13,418) (1,412) SS&C Technologies Holdings Inc (60,419) (4,443) (16,632) St Joe Co/The (390,852) (31,545) 7,441 St Jude Medical Inc 484,409 15,014 (1,007) Staar Surgical Co (15,578) 3,368 1,940 Stamps.com Inc 62,584 (7,116) (5,193) StanCorp Financial Group Inc (315,786) (3,737) 4,904 Standard Motor Products Inc 205,232 26,315 11,509 Standard Pacific Corp 93,108 3, Standard Plus Corp 7, (923) Stanley Black & Decker Inc (80,246) 171 (36,982) Staples Inc (421,595) 26, Starbucks Corp 1,603 (48) 102 Starwood Waypoint Reside (Reit) 2, (18,945) Starz 'A' (578,201) 23,289 (37,101) State Auto Financial Corp (810,286) (20,035) 28,812 State Bank Financial Corp 464,738 (39,496) 8,261 Steel Dynamics Inc 143,081 (5,244) 15,987 Steelcase Inc 'A' 261,387 15, Stein Mart Inc 10, ,491 Steiner Leisure Ltd 464,007 (36,698) 551 Stepan Co 29, (56,238) Sterling Bancorp/DE (645,612) 69, Steven Madden Ltd 1,464 (17) 394 Stillwater Mining Co 6, (16,488) Stillwater Mining Co (278,977) (14,161) 778 Stock Building Supply Holdings Inc 15,054 (739) (8,932) Stock Yards Bancorp Inc (258,403) 14,738 2,656 Stone Energy Corp 118,298 8,976 5,145 Stonegate Mortgage Corp 78,410 4,630 6,055 Stoneridge Inc 57,765 (12,110) 73,383 STR Holdings Inc 102,736 (10,650) 4,950 Straight Path Communications Inc 'B' 44,699 5, Stratasys Ltd 54,188 (204) (825) Stratasys Ltd (77,344) (4,319) (560) Strayer Education Inc (30,632) (4,614) (7,811) Stryker Corp (662,217) (33,716) 1,763 Sucampo Pharmaceuticals Inc 'A' 12,746 (1,869) (912) Suffolk Bancorp (20,867) (531) (1,369) Summit Hotel Properties Inc (Reit) (13,608) (986) (19,851) Sun Bancorp Inc/NJ (75,831) (6,948) 5,667 Sun Communities Inc (Reit) 273,886 5,465 (1,525) Sun Hydraulics Corp (57,218) 1,447 (164) SunCoke Energy Inc (3,288) 298 (19,442) Sunedison Inc (387,285) (36,699) 842 SunPower Corp 28,215 1,040 (1,619) SunPower Corp (54,253) (2,683) (734) Sunshine Heart Inc (4,037) 558 9,000 SunTrust Banks Inc 346,410 5, Super Micro Computer Inc 6, (1,887) Superior Industries International Inc (37,646) 491 (7,784) Supernus Pharmaceuticals Inc (69,122) (8,784) 18,006 support.com Inc 41,774 (6,122) 1,038 Surgical Care Affiliates Inc 31,119 1,076 3,833 Susquehanna Bancshares Inc 38, (2,999) Susser Holdings Corp (237,551) (44,035) 3,554 SVB Financial Group 376,617 11,870 (312) SVB Financial Group (33,063) (331) 9,659 Swift Transportation Co 240,895 3,126 5,895 SWS Group Inc 42,031 (5,659) 72,126 Sycamore Networks Inc 41,112 (793) 10,961 Sykes Enterprises Inc 223,276 (1,973) 28,216 Symetra Financial Corp 589,432 22,901 United States continued 25,228 Symmetry Medical Inc 224,025 (35,480) 41,128 Synacor Inc 90,482 (15,217) (2,931) Synageva BioPharma Corp (239,873) 6,127 (815) Synaptics Inc (54,907) 754 1,787 Synaptics Inc 120,390 11,901 2,173 Synchronoss Technologies Inc 69,123 4, SYNNEX Corp 28, (301) SYNNEX Corp (19,598) (1,385) 1,919 Synopsys Inc 73,958 1, Synovus Financial Corp 17, ,104 Syntel Inc 657,396 9,449 1,268 Synutra International Inc 7, (13,129) Synutra International Inc (74,048) 17,987 18,983 Sypris Solutions Inc 87,132 29,234 (17,581) Sysco Corp (653,310) (8,027) 7,177 T Rowe Price Group Inc 585,069 15,147 5,732 T-Mobile USA Inc 199,474 7,541 (1,127) Tableau Software Inc 'A' (67,417) (2,464) 1,183 Take-Two Interactive Software Inc 23,826 1,573 (8,310) Take-Two Interactive Software Inc (167,363) 376 (1,583) TAL International Group Inc (69,367) (2,388) 177 Taminco Corp 3, (2,217) Tandem Diabetes Care Inc (36,714) 987 (2,405) Tangoe Inc (37,398) 2, Targa Resources Corp 32,474 1,629 2,771 Target Corp 155,980 1,881 10,643 Taser International Inc 142,510 (47,592) (8,243) Taubman Centers Inc (Reit) (616,082) (14,801) (7,809) Taylor Capital Group (167,503) (1,767) 5,171 Taylor Morrison Home Corp 'A' 109, ,081 TE Connectivity Ltd 1,192,410 33,037 4,084 Team Health Holdings Inc 206,569 9,731 (1,207) Team Inc (51,418) (902) (11,433) TearLab Corp (56,593) 28,354 (3,762) Tech Data Corp (219,437) 17, Tech Data Corp 29, (36,425) TECO Energy Inc (628,696) (32,185) 3,559 Tecumseh Products Co 17,475 (1,428) (1,273) Teekay Corp (73,770) 827 (13,183) Teekay Offshore Partners LP (471,951) (53,909) 2,778 Tejon Ranch Co 86,090 (10,418) 1,465 Tejon Ranch Co (Warrants) 3,809 (1,978) 3,264 Teledyne Technologies Inc 311,745 1,917 (1,058) Teleflex Inc (112,857) (1,412) 17,517 Telefonica Brasil SA ADR 357,172 (10,634) (2,849) Telenav Inc (15,726) 684 7,070 Telephone & Data Systems Inc 199,798 9,430 8,951 TeleTech Holdings Inc 237,022 21,757 (18,246) Tempur-Pedic International Inc (1,001,888) (52,310) (5,029) Tenet Healthcare Corp (236,916) (1,865) (2,847) Tennant Co (182,777) 114 (238) Teradata Corp (9,932) 641 (3,524) Teradyne Inc (63,256) Terex Corp 20,822 (21) (227) Territorial Bancorp Inc (4,681) 316 1,562 Tesco Corp 33,677 5,436 (1,016) Tesla Motors Inc (216,306) (9,281) 497 Tesoro Corp 28, (9,905) Tessco Technologies Inc (306,065) 60,553 10,068 Tessera Technologies Inc 229,047 (1,327) 1,655 Tetra Tech Inc 44,056 (107) 4,648 Texas Capital Bancshares Inc 240,813 (43,941) (2,606) Texas Industries Inc (225,002) (2,788) (10,954) Texas Instruments Inc (512,209) (19,975) (9,159) Textainer Group Holdings Ltd (355,278) 844 The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 49

52 BlackRock Americas Diversified Equity Absolute Return Fund continued Contracts For Difference as at 31 May 2014 Holding Commitment Holding Commitment United States continued United States continued (1,383) Textura Corp (30,315) 6,164 37,249 UIL Holdings Corp 1,380,448 51,239 (4,000) TherapeuticsMD Inc (16,320) 14,960 1,236 Ulta Salon Cosmetics (1,097) Theravance Inc (31,319) (197) & Fragrance Inc 104,652 (1,651) 30,364 Third Point Reinsurance Ltd 468,517 (9,818) 314 Ultimate Software Group Inc/The 40,154 1,486 (22,679) Thomson Reuters Corp (789,002) 23,308 1,743 Ultra Clean Holdings Inc 14,833 (8,813) (1,741) Thor Industries Inc (104,599) (1,027) 402 Ultra Petroleum Corp 10,802 (143) 6,706 Thoratec Corp 222,170 (16,229) (5,752) Ultrapetrol Bahamas Ltd (17,659) 1,185 14,029 TIBCO Software Inc 302,044 28,050 (10,036) Ultratech Inc (253,509) 7,527 (17,146) TICC Capital Corp (166,145) 10,459 (6,347) UMB Financial Corp (353,528) (3,618) 1,350 Tidewater 70,862 2,903 (4,418) UMH Properties Inc (Reit) (43,517) (439) (1,086) Tidewater Inc (57,004) (1,944) 13,771 Umpqua Holdings Corp 230,802 (30,523) (5,741) Tile Shop Holdings Inc (84,622) 10,219 (2,958) Under Armour Inc 'A' (149,172) (11,665) 1,398 Tilly's Inc 'A' 12,582 (3,691) (4,066) Uni-Pixel Inc (21,509) 17,484 (13,569) Tim Participacoes SA ADR (366,770) (28,130) 9,274 Unifi Inc 217,383 (19,104) (9,197) Timken Co/The (588,240) (29,366) (3,713) Unilife Corp (10,990) 4,864 (20,505) Titan International Inc (329,720) 44,337 (290) Union Bankshares Corp (7,323) 151 (939) Titan Machinery Inc (16,545) (1,944) 478 Union Pacific Corp 94,199 2,844 (26,325) Toll Brothers Inc (956,914) (57,389) 903 Unisys Corp 21,257 (99) (6,360) Tompkins Financial Corp (295,168) 16, Unit Corp 40,276 (348) (19,133) Tootsie Roll Industries Inc (563,084) 19,113 (332) Unit Corp (20,926) 46 (497) Torchmark Corp (40,302) (641) (1,570) United Bankshares Inc/WV (47,909) (1,726) (10,564) Tornier NV (236,951) (25,869) 17,399 United Community Banks Inc/GA 272,294 (48,717) (9,451) Total System Services Inc (288,728) 6,530 (14,994) United Community Financial Corp/OH (58,027) 2,699 (13,574) Tower Group International Ltd (29,727) 2, United Continental Holdings Inc 13,014 1,141 9,355 Tower International Inc 284,018 37,046 (1,283) United Financial Bancorp Inc (17,526) 61 (50,124) Towerstream Corp (97,742) 32,581 4,284 United Insurance Holdings Co 75,441 10,667 2,832 Town Sports International Holdings Inc 17,445 (1,542) (6,009) United Natural Foods Inc (405,127) (8,621) (66,140) TowneBank/Portsmouth VA (1,048,319) (25,133) 3,652 United Online Inc 39,770 1,278 (356) Tractor Supply Co (22,859) (105) 1,848 United Parcel Service Inc 'B' 191,841 6,191 12,577 Trans World Entertainment Corp 44,020 1,360 (5,583) United States Cellular Corp (240,292) (10,580) 1,749 Transatlantic Petroleum Ltd 15,426 1, United States Lime & Minerals Inc 7, ,213 Transcept Pharmaceuticals Inc 26,282 (164) 2,185 United States Steel Corp 51,238 (755) 894 TransDigm Group Inc 167,795 3,656 (527) United Stationers Inc (20,843) 65 1,279 Transocean Ltd 53, ,328 United Stationers Inc 131,622 (5,160) 14,392 TravelCenters of America LLC 122,332 (1,727) 1,310 United Technologies Corp 151,777 3,296 15,721 Travelzoo Inc 305,931 (57,853) 2,887 United Therapeutics Corp 275,189 (17,813) 1,004 Tree.com Inc 25,220 (6,646) 1,981 UnitedHealth Group Inc 156,737 4,318 (15,385) TreeHouse Foods Inc (1,152,337) (32,017) (3,076) UnitedHealth Group Inc (243,373) (7,677) 10,906 Tremor Video Inc 45,260 (7,852) (892) Universal American Corp/NY (6,967) (607) 1,109 Trevena Inc 5,024 (4,633) (978) Universal Corp/VA (52,568) 1,503 (5,049) Trex Co Inc (155,661) (31,160) (2,037) Universal Display Corp (54,082) (2,484) (162) Tri Pointe Homes Inc (2,511) 306 (1,803) Universal Electronics Inc (82,631) (6,878) 488 Triangle Capital Corp 12,976 (15) (2,672) Universal Forest Products Inc (130,126) 5,480 (3,645) Triangle Petroleum Corp (37,361) (7,321) 6,190 Universal Insurance Holdings Inc 77,189 (12,132) 140 Trico Bancshares 3,247 (126) (6,743) Universal Stainless & Alloy 552 Trimas Corp 19, Products Inc (207,819) 36,941 (6,713) Trimble Navigation Ltd (240,057) (5,185) (16,386) Universal Technical Institute Inc (185,490) 33,264 6,638 TriNet Group Inc 168,273 33,457 1,673 Universal Truckload Services Inc 40,804 (7,678) 4,075 Trinity Industries Inc 356,155 38, Unum Group 32,272 1,245 (1,290) Tronox Ltd 'A' (34,172) (1,816) (100,588) Unwired Planet Inc (217,270) (87,512) 3,116 TrueBlue Inc 85,223 (307) (1,546) Ur-Energy Inc (1,902) 486 (8,840) Trulia Inc (346,263) (56,133) 3,849 Urban Outfitters Inc 128,133 (7,967) 1,751 Trustmark Corp 40,623 (1,539) (3,353) Urstadt Biddle Properties (6,441) TTM Technologies Inc (49,080) 1,199 Inc 'A' (Reit) (68,837) (263) 755 Turtle Beach Corp 7,814 1,247 (22,491) US Antimony Corp (38,685) 3,149 (748) Tutor Perini Corp (23,270) (431) 133 US Concrete Inc 3, (2,030) tw telecom Inc (65,975) 11 (316) US Physical Therapy Inc (10,539) 31 (2,463) Twenty-First Century Fox 'A' (87,289) (3,497) 382 US Silica Holdings Inc 19,612 2,387 (7,439) Twin Disc Inc (247,272) (59,586) 21,651 USA Mobility Inc 327,363 (747) 354 Twitter Inc 11, ,086 USANA Health Sciences Inc 79,300 (1,108) (1,845) Tyco International Ltd (80,479) (2,140) (11,344) USG Corp (338,959) (3,072) (4,694) Tyler Technologies Inc (366,695) (5,837) 137 USMD Holdings Inc 1,708 (256) 168 Tyson Foods Inc 'A' 7, ,824 Utah Medical Products Inc 93,991 6,418 1,599 Ubiquiti Networks Inc 56,685 (11,160) (25,680) UTi Worldwide Inc (253,718) 40,061 (33,820) UDR Inc (Reit) (929,035) 3,553 5,306 Vaalco Energy Inc 34,224 2, UGI Corp 17, ,583 Vail Resorts Inc 459,691 16, BlackRock Strategic Funds (BSF)

53 BlackRock Americas Diversified Equity Absolute Return Fund continued Contracts For Difference as at 31 May 2014 Holding Commitment Holding Commitment United States continued 14,019 Vale SA ADR 161,639 7,009 3,171 Valero Energy Corp 179,035 1, Validus Holdings Ltd 18, (175,760) Valley National Bancorp (1,715,418) 86,733 (2,714) Valmont Industries (425,772) 5,317 3,885 Valspar Corp/The 289,666 5,302 (87,717) Vantage Drilling Co (145,610) 7,895 (3,917) Vantiv Inc 'A' (122,132) (7,773) (5,647) Varian Medical Systems Inc (467,148) (9,833) 267 Varonis Systems Inc 6,413 4 (425) VASCO Data Security International Inc (4,756) (36) 2,123 Vascular Solutions Inc 43,161 (12,844) 17,766 VCA Antech Inc 605,643 20,487 1,173 Vector Group Ltd 24,434 1,455 14,960 Vectren Corp 592,266 10,921 (27,687) Vectren Corp (1,096,128) (15,341) (3,867) Veeco Instruments Inc (128,152) 15,228 (1,297) Veeva Systems Inc 'A' (29,299) (3,484) 12,834 Ventrus Biosciences Inc 15,016 (3,465) (5,452) Vera Bradley Inc (148,731) 5,276 1,704 Veracyte Inc 26, (6,395) VeriFone Systems Inc (211,866) (5,171) 9,084 Verint Systems Inc 419,590 17,170 1,581 VeriSign Inc 79,350 2, Verisk Analytics Inc 'A' 23, (1,664) Verisk Analytics Inc 'A' (100,522) 627 6,713 Verizon Communications Inc 333,972 20,154 (663) Vertex Pharmaceuticals Inc (47,524) (4,124) 7,374 Viacom Inc 'B' 631,288 15,690 12,075 Viad Corp 279,898 (14,007) (1,320) ViaSat Inc (71,425) 11, ViaSat Inc 23,592 (314) (1,206) Viasystems Group Inc (12,518) ,211 Vicor Corp 128,738 (54,387) (23,973) ViewPoint Financial Group Inc (595,010) 28,965 (3,515) Village Super Market Inc 'A' (85,098) 16, Vince Holding Corp 18, ,234 Violin Memory Inc 10,802 (3,557) (2,251) VirnetX Holding Corp (35,926) (270) (2,597) Virtus Investment Partners Inc (484,782) (15,213) (1,045) Virtusa Corp (36,523) Visa Inc 'A' 48,387 1,503 6,857 Vishay Intertechnology Inc 101,826 3,428 (3,233) VistaPrint NV (130,678) 23,340 2,040 Visteon Corp 186,640 1,326 (2,696) Visteon Corp (246,657) (849) 346 Vitacost.com Inc 2, Vitamin Shoppe Inc 13,693 (755) 767 VMware Inc 'A' 74,483 1,931 1,186 Vocera Communications 15, (6,533) Vocus Inc (117,529) (4,175) (33,133) Volcano Corp (584,466) 60,403 32,240 Vonage Holdings Corp 119,933 (20,528) (12,614) Vonage Holdings Corp (46,924) 5,521 (19,982) Vornado Realty Trust (Reit) (2,133,678) (34,994) 9,038 VOXX International Corp 77,727 (20,439) 1,891 Voya Financial Inc 68,530 3,725 (937) VSE Corp (58,085) (6,735) 25,413 W&T Offshore 372,809 (13,328) (17,532) Wabash National Corp (243,344) (100) 6,561 WABCO Holdings Inc 700,124 1,991 (2,845) Wabtec Corp (222,764) (11,551) 990 Wabtec Corp/DE 77,517 3,900 8,632 Waddell & Reed Financial Inc 'A' 525,171 (17,382) United States continued (1,306) WageWorks Inc (52,867) 19,377 9,865 Walker & Dunlop Inc 147,580 (11,147) (3,924) Walter Energy Inc (19,620) 3,788 (251) Walter Investment Management Corp (7,292) (38) 10,821 Warren Resources Inc 49,885 1,299 3,119 Washington Federal Inc 65,031 1,029 (667) Washington Prime Group (Reit) (13,427) (13,427) (1,309) Washington Real Estate Investment Trust (Reit) (33,654) (2,046) (1,222) Washington Trust Bancorp Inc (42,330) 2,939 10,309 Waste Connections Inc 465,451 15,181 (5,075) Waste Management Inc (225,178) (2,132) (3,914) Waters Corp (391,713) 4,695 (806) Waterstone Financial Inc (8,713) (242) 6,810 Watsco Inc 692,100 11,148 11,554 Watts Water Technologies Inc 'A' 646,100 28,082 (29,408) Wausau Paper Corp (315,548) 71, WD-40 Co 37,121 (1,239) (26,636) Weatherford International Ltd/ Switzerland (576,803) (52,864) (4,377) Web.com Group Inc (150,831) (723) 2,735 Web.com Group Inc 94,248 (3,802) (3,019) WebMD Health Corp (130,300) Webster Financial 21, (1,055) Webster Financial Corp (31,977) (1,456) 640 Weingarten Realty Investors (Reit) 20, (3,610) Weis Markets Inc (171,078) 6,931 1,236 WellPoint Inc 133,871 4,178 4,574 Wesco Aircraft Holdings Inc 98,707 1,366 6,946 West Bancorporation Inc 99,745 (1,608) 4,152 West Corp 111,979 11,709 10,727 West Marine Inc 108,557 (11,191) 15,550 West Pharmaceutical Services Inc 663,052 (2,268) (42,894) Westamerica Bancorporation (2,128,400) 42,595 19,484 Westell Technologies Inc 'A' 48,710 (6,459) 11,806 Western Alliance Bancorp 272,601 5,624 4,503 Western Digital Corp 391,086 9,114 1,912 Western Refining Inc 78,430 2,035 (807) Westlake Chemical Corp (65,472) (5,119) (1,622) Westmoreland Coal Co (49,049) (6,100) 5,132 Westwood Holdings Group Inc 304,995 2,720 53,386 Wet Seal Inc 'A' 46,446 (54,454) (6,065) WEX Inc (587,092) (37,460) (1,344) Weyco Group Inc (37,135) 228 (4,649) Weyerhaeuser Co (Reit) (145,979) (6,183) 4,631 Whirlpool Corp 665,614 (1,964) 20,621 WhiteWave Foods Co 'A' 659,872 42,791 6,529 Whiting Petroleum Corp 470,871 (3,957) 6,268 Whole Foods Market Inc 236,930 (5,159) 7,706 Willbros Group Inc 92,780 14,718 (1,215) Williams Cos Inc/The (56,911) (1,565) (772) Williams-Sonoma Inc (52,056) (2,495) 33,967 Willis Group Holdings Plc 1,415,745 9,754 27,066 Willis Lease Finance Corp 502,616 (40,870) 13,164 Wilshire Bancorp Inc 135,458 (8,557) (34,000) Windstram Holdings Inc (326,570) (30,758) 1,390 Winmark Corp 92,574 (1,785) (2,301) Winnebago Industries Inc (57,226) 7,475 2,990 Wintrust Financial Corp 131,709 (12,108) 1,390 Wix.com Ltd 24,756 2,809 (35,713) Wolverine World Wide Inc (919,967) 19,606 (451) Workday Inc 'A' (35,634) (3,516) (14,091) World Fuel Services Corp (648,186) (5,118) 691 World Wrestling Entertainment Inc 'A' 7,774 (4,276) (164) World Wrestling Entertainment Inc 'A' (1,845) 2,828 The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 51

54 BlackRock Americas Diversified Equity Absolute Return Fund continued Contracts For Difference as at 31 May 2014 Holding Commitment Holding Commitment United States continued United States continued 1,322 Worthington Industries Inc 53,316 2,591 12,395 WP Carey Inc (Reit) 785,471 38,874 (16,009) WPX Energy Inc (341,152) 1,835 (830) WR Grace & Co (77,057) (850) (16,190) Wright Medical Group Inc (493,471) 28,759 2,392 WSFS Financial Corp 163,852 (6,684) 1,329 Wyndham Worldwide Corp 97, (16,040) XenoPort Inc (65,283) 27,910 4,607 Xerium Technologies Inc 62,886 (15,526) (14,244) Xerox Corp (174,489) (4,152) 16,100 Xilinx Inc 756,217 (23,269) 2,440 XO Group Inc 28,158 (1,562) (2,005) Xoom Corp (44,952) 1,649 8,258 XPO Logistics 209,010 12,951 (3,372) XPO Logistics Inc (85,345) 20,772 (10,378) Yadkin Financial Corp (196,559) 18,888 3,710 Yahoo! Inc 128,329 2,636 (658) Yelp Inc (43,658) (7,337) (852) YRC Worldwide Inc (18,863) (1,772) 2,044 YuMe Inc 10,772 (2,596) 24,958 ZAGG Inc 115,805 4,742 6,158 Zebra Technologies Corp 'A' 455,692 23,165 (2,040) Zebra Technologies Corp 'A' (150,960) 622 (2,119) Zillow Inc 'A' (252,140) (48,219) (471) Zimmer Holdings Inc (48,942) (54) 16,380 Zix Corp 55, ,266 Zoetis Inc 69, (877) Zumiez Inc (24,249) (2,272) (5,583) Zygo Corp (107,417) (10,670) (3,624) Zynga Inc 'A' (12,213) (36) (234,894) 1,729,743 Total market value ( underlying exposure 663,353,333) 2,494,824 3,454,563 Note: The net unrealised appreciation attributed to these transactions is included in the Statement of Net Assets (see Note 2(d)). Goldman Sachs and Morgan Stanley are the counterparties to these Contracts for Difference. Swaps as at 31 May ,330 Total Return Swap (Citibank) (Fund receives 3 Month LIBOR and pays MSCI Daily TR Net Emerging Markets Chile Index) (25/7/2014) (113,278) ( underlying exposure 2,130,156) (113,278) Note: The total market value of (113,278) is included in the Statement of Net Assets. Sector Breakdown as at 31 May 2014 % of Net Assets* Government Financial Other Net Assets * Based on the market value of the Portfolio of Investments except for Contract For Difference, which are based on the commitment (where applicable). Open Forward Foreign Exchange Transactions as at 31 May 2014 Purchases Sales date 26,675,293 36,667,473 13/6/2014 (335,258) 628, ,017 13/6/2014 4,201 SEK 157,911,484 24,085,781 13/6/2014 (417,638) 201,349 SEK 1,324,813 13/6/2014 2,783 Net unrealised depreciation ( underlying exposure 60,822,752) (745,912) Note: The net unrealised depreciation attributed to these transactions is included in the Statement of Net Assets (see Note 2(d)). State Street Bank and Trust Company is the counterparty to these Open Forward Foreign Exchange Transactions. 52 BlackRock Strategic Funds (BSF)

55 BlackRock Asia Extension Fund Portfolio of Investments as at 31 May 2014 Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding Market % of Net Assets Holding Market % of Net Assets BONDS United States 2,200,000 Federal Home Loan Banks 0.18% 9/1/2015 2,201, ,000,000 United States Treasury Bill 19/6/2014 (Zero Coupon) 2,999, ,000,000 United States Treasury Bill 26/6/2014 (Zero Coupon) 4,999, ,000,000 United States Treasury Bill 20/11/2014 (Zero Coupon) 999, ,750,000 United States Treasury Note/Bond 2.125% 30/11/2014 2,778, ,979, Total Bonds 13,979, CERTIFICATES OF DEPOSIT United States 5,000,000 Bank of Nova Scotia 17/2/2015 (Zero Coupon) 5,000, ,000,000 Cooperatieve Centrale Raiffeisen- Boerenleenbank BA 9/2/2015 (Zero Coupon) 6,000, ,000,000 Credit Suisse AG 0.50% 9/6/2014 4,001, ,000,000 DnB NOR Bank ASA 0.22% 10/7/2014 2,000, ,000,000 Nordea Bank Finland Plc 0.205% 10/10/2014 1,999, ,500,000 Royal Bank of Canada 0.235% 23/10/2014 4,500, ,750,000 Sumitomo Mitsui Banking Corp 0.22% 25/7/2014 5,750, ,251, Total Certificates of Deposit 29,251, COMMERCIAL PAPER United States 6,000,000 Alpine Securitization Corp 22/10/2014 (Zero Coupon) 5,993, ,000,000 Antalis US Funding Corp 5/8/2014 (Zero Coupon) 8,996, ,500,000 Antalis US Funding Corp 8/8/2014 (Zero Coupon) 1,499, ,000 Bank of Nova Scotia 24/6/2014 (Zero Coupon) 499, ,000,000 Bank of Nova Scotia 9/7/2014 (Zero Coupon) 4,998, ,000 Bank of Tokyo Mitsubishi UFJ Ltd 9/6/2014 (Zero Coupon) 899, ,000,000 Cafco LLC 10/9/2014 (Zero Coupon) 6,995, ,500,000 Caisse Centrale Desjardins du Quebec 3/7/2014 (Zero Coupon) 2,499, ,000,000 Cancara Asset Securitisation LLC 9/6/2014 (Zero Coupon) 4,999, ,000,000 Cancara Asset Securitisation LLC 14/7/2014 (Zero Coupon) 4,998, ,000,000 Ciesco LLC 10/6/2014 (Zero Coupon) 1,999, ,300,000 ING (US) Funding LLC 1/8/2014 (Zero Coupon) 2,299, United States continued 3,000,000 LMA Americas LLC 6/6/2014 (Zero Coupon) 2,999, ,000,000 LMA Americas LLC 24/6/2014 (Zero Coupon) 4,999, ,000,000 Macquarie Bank Ltd 18/8/2014 (Zero Coupon) 4,998, ,000,000 Matchpoint Master Trust 15/9/2014 (Zero Coupon) 4,995, ,450,000 Oversea-Chinese Banking Corp Ltd 14/7/2014 (Zero Coupon) 1,449, ,000,000 Oversea-Chinese Banking Corp Ltd 6/8/2014 (Zero Coupon) 3,998, ,500,000 Rabobank USA Financial Corp 24/6/2014 (Zero Coupon) 2,499, ,000 Rabobank USA Financial Corp 27/6/2014 (Zero Coupon) 499, ,780,000 Salisbury Receivables Co LLC 9/6/2014 (Zero Coupon) 5,779, ,500,000 Sheffield Receivables Corp 11/7/2014 (Zero Coupon) 2,499, ,000,000 Societe Generale North America Inc 2/6/2014 (Zero Coupon) 3,999, ,000,000 Societe Generale North America Inc 4/8/2014 (Zero Coupon) 7,997, ,000,000 Sumitomo Mitsui Banking Corp 6/8/2014 (Zero Coupon) 3,998, ,000,000 Svenska Handelsbanken AB 11/6/2014 (Zero Coupon) 1,999, ,000,000 Victory Receivables Corp 2/6/2014 (Zero Coupon) 1,999, ,396, Total Commercial Paper 101,396, Total Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market 144,627, Other Transferable Securities and Money Market Instruments BONDS United States 12,000,000 Fannie Mae Discount Notes 11/6/2014 (Zero Coupon) 11,999, ,000,000 Freddie Mac Discount Notes 23/6/2014 (Zero Coupon) 4,999, ,999, Total Bonds 16,999, Total Other Transferable Securities and Money Market Instruments 16,999, Securities portfolio at market value 161,627, Other Net Assets 41,038, Total Net Assets () 202,666, The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 53

56 BlackRock Asia Extension Fund continued Contracts For Difference as at 31 May 2014 Holding Commitment Holding Commitment Hong Kong 30,000 Agile Property Holdings Ltd 23, ,403,000 Agricultural Bank of China Ltd 'H' 5,074, , ,200 AIA Group Ltd 2,200,914 54,875 (230,000) Aluminum Corp of China Ltd 'H' (82,178) 1,305 21,500 Anhui Conch Cement Co Ltd 'H' 77,096 (5,688) 126,000 ANTA Sports Products Ltd 185,279 (16,595) (228,000) Anxin-China Holdings Ltd (31,468) 3,927 (99,100) ASM Pacific Technology Ltd (1,110,180) (210,750) 5,230,000 Bank of China Ltd 'H' 2,496, , ,600 Bank of East Asia Ltd 1,166,341 43, ,500 BBMG Corp 'H' 437,657 (82,674) (210,000) Beijing Enterprises Water Group Ltd (134,896) (6,636) 386,000 Belle International Holdings Ltd 383,379 (29,957) (3,500) Biostime International Holdings Ltd (23,724) (2,430) 1,215,500 BOC Hong Kong Holdings Ltd 3,645,253 (170,706) (32,000) Brilliance China Automotive Holdings Ltd (52,999) (10,673) 251,000 Cheung Kong Holdings Ltd 4,484, , ,000 Cheung Kong Infrastructure Holdings Ltd 1,427, , ,000 China Agri-Industries Holdings Ltd 320,304 9,603 1,181,000 China Cinda Asset Management Co Ltd 'H' 563,639 (77,227) 165,000 China CITIC Bank Corp Ltd 'H' 95,774 1,677 (1,462,000) China Coal Energy Co Ltd 'H' (831,641) (60,968) 1,580,000 China Communications Construction Co Ltd 'H' 1,053,652 (153,748) 6,198,000 China Construction Bank Corp 'H' 4,540,983 (201,230) (1,491,000) China COSCO Holdings Co Ltd 'H' (578,888) 55,304 (425,000) China Everbright International Ltd (541,073) (12,386) 192,000 China Everbright Ltd 269,946 (1,168) 107,000 China Galaxy Securities Co Ltd 'H' 68, (1,376,000) China High Speed Transmission Equipment Group Co Ltd (933,585) (47,945) (417,000) China Longyuan Power Group Corp 'H' (463,115) (42,048) 357,000 China Machinery Engineering Corp 'H' 229,783 (2,873) 500,500 China Merchants Bank Co Ltd 'H' 921,897 (11,091) 200,000 China Mobile Ltd 1,955,460 34, ,000 China Oilfield Services Ltd 'H' 1,171,481 30, ,000 China Overseas Grand Oceans Group Ltd 321,135 2, ,000 China Overseas Land & Investment Ltd 754,116 (102,592) 15,000 China Pacific Insurance Group Co Ltd 'H' 49,822 1,063 1,640,600 China Petroleum & Chemical Corp 'H' 1,487,674 81, ,000 China Power International Development Ltd 241,214 (7,587) 1,393,500 China Railway Construction Corp Ltd 'H' 1,177,330 (171,754) 1,329,000 China Railway Group Ltd 'H' 613,702 (9,570) 140,000 China Resources Cement Holdings Ltd 87,764 (12,456) 282,000 China Resources Land Ltd 573,265 (127,907) 284,000 China Resources Power Holdings Co Ltd 745,474 24,137 (1,361,000) China Shanshui Cement Group Ltd (495,059) (38,939) 564,000 China Shenhua Energy Co Ltd 'H' 1,542,285 (45,830) (430,000) China Shipping Development Co Ltd 'H' (237,390) 26,339 68,000 China Southern Airlines Co Ltd 'H' 19,560 (756) 1,160,000 China Telecom Corp Ltd 'H' 585,039 63, ,000 China Unicom Hong Kong Ltd 253,049 (9,910) 280,000 China WindPower Group Ltd 20,587 (568) 146,000 Chongqing Rural Commercial Bank 'H' 67,420 2, ,000 CIFI Holdings Group Co Ltd 56,812 (618) (60,000) CITIC Pacific Ltd (104,790) (13,323) Hong Kong continued 52,000 CNOOC Ltd 88,940 (194) 312,000 Coolpad Group Ltd 76,464 (20,165) 364,000 COSCO Pacific Ltd 479,846 (24,522) 91,000 CSR Corp Ltd 'H' 67,258 (3,852) 568,000 Dongfeng Motor Group Co Ltd 'H' 865,996 (3,061) (1,257,600) Esprit Holdings Ltd (1,852,500) 681, ,000 Evergrande Real Estate Group Ltd 217,706 2, ,000 FIH Mobile Ltd 351,541 1,507 (60,000) First Pacific Co Ltd/Hong Kong (67,874) (486) 78,700 Forgame Holdings Ltd 304,541 (32,085) (31,000) Fosun International Ltd (36,588) 2,252 1,588,000 Franshion Properties China Ltd 475,213 (18,423) 86,000 Galaxy Entertainment Group Ltd 688,319 (7,034) 4,778,000 GOME Electrical Appliances Holding Ltd 801,198 22,054 88,500 Greentown China Holdings Ltd 86,529 (4,676) 408,000 Guangdong Investment Ltd 450,488 65,347 40,000 Guangzhou Automobile Group Co Ltd 'H' 41,999 6,251 74,000 Haier Electronics Group Co Ltd 172,958 (29,516) 146,000 Haitian International Holdings Ltd 319,019 23,187 (12,000) Hang Lung Group Ltd (67,564) (10,944) 28,000 Henderson Land Development Co Ltd 182,028 33,451 (9,500) Hengan International Group Co Ltd (100,421) (294) (506,000) Honghua Group Ltd (120,093) 8,869 60,000 Huabao International Holdings Ltd 27,939 (2,899) 206,000 Huadian Power International Corp Ltd 'H' 115,586 1,507 60,000 Huaneng Power International Inc 'H' 63,153 2, ,000 Hutchison Whampoa Ltd 1,687,010 55,308 4,872,000 Industrial & Commercial Bank of China Ltd 'H' 3,154,718 (149,506) 97,000 Jiangxi Copper Co Ltd 'H' 160,152 (24,605) (1,317,000) K Wah International Holdings Ltd (917,338) 86, ,000 Kaisa Group Holdings Ltd 106,315 9, ,000 Kerry Properties Ltd 575,610 3, ,500 Kingboard Chemical Holdings Ltd 549,335 (24,743) (9,000) KINGSOFT Corp Ltd (27,165) (1,516) (196,000) Kunlun Energy Co Ltd (319,055) 11, ,000 KWG Property Holding Ltd 440,166 39, ,000 Li & Fung Ltd 531,638 (17,010) (1,023,250) Li Ning Co Ltd (720,649) 161,637 10,700 Lifestyle Properties Development Ltd 1,587 1,587 35,500 Longfor Properties Co Ltd 45,012 (586) 121,000 Lonking Holdings Ltd 21,538 (3,593) (185,000) Melco International Development Ltd (588,218) (14,774) 474,000 MGM China Holdings Ltd 1,647,733 (184,362) 229,300 New China Life Insurance Co Ltd 'H' 718, ,000 New World Development Co Ltd 126,998 4, ,000 Newocean Energy Holdings Ltd 86,693 (15,755) 413,000 NWS Holdings Ltd 719,173 74,545 4,500 Orient Overseas International Ltd 22, ,143,000 PCCW Ltd 622,169 60, ,000 PetroChina Co Ltd 'H' 850,060 54, ,500 Ping An Insurance Group Co of China Ltd 'H' 1,663,647 22, ,500 Power Assets Holdings Ltd 1,664,863 (17,065) 18,300 Samsonite International SA 57,360 1, ,400 Sands China Ltd 3,314,521 (284,715) (6,790,000) Semiconductor Manufacturing International Corp (578,045) (9,638) (392,000) Shandong Weigao Group Medical Polymer Co Ltd 'H' (383,776) 66,352 (10,500) Shanghai Fosun Pharmaceutical Group Co Ltd 'H' (39,074) (2,719) 162,000 Shanghai Industrial Holdings Ltd 499,416 (40,760) 54 BlackRock Strategic Funds (BSF)

57 BlackRock Asia Extension Fund continued Contracts For Difference as at 31 May 2014 Holding Commitment Holding Commitment Hong Kong continued (566,000) Shangri-La Asia Ltd (896,529) 69,245 54,500 Shenzhen International Holdings Ltd 64,815 (2,098) 1,648,000 Shenzhen Investment Ltd 537,808 (19,470) 688,500 Shimao Property Holdings Ltd 1,381,858 (185,250) 258,500 Sino-Ocean Land Holdings Ltd 136,041 1, ,800 Sinopharm Group Co Ltd 'H' 695,607 (35,183) 960,000 SJM Holdings Ltd 2,742,804 (133,871) (474,000) SmarTone Telecommunications Holdings Ltd (542,926) 3,136 (407,500) SOHO China Ltd (319,581) 29, ,000 Sun Art Retail Group Ltd 545,836 (18,601) 701,000 Sunac China Holdings Ltd 361,683 4, ,500 Swire Pacific Ltd 'A' 1,480, , ,500 Tencent Holdings Ltd 3,792,697 (10,072) 254,000 Tingyi Cayman Islands Holding Corp 720,786 (20,418) (23,000) Tong Ren Tang Technologies Co Ltd 'H' (65,416) 1, ,000 Truly International Holdings 261,129 18,403 (20,000) Tsingtao Brewery Co Ltd 'H' (156,979) (4,229) (250,800) Uni-President China Holdings Ltd (47,231) (47,231) (1,254,000) Uni-President China Holdings Ltd (965,654) 153,771 (378,000) United Photovoltaics Group Ltd (31,205) 54, ,000 Want Want China Holdings Ltd 298,401 (32,101) 59,000 Wheelock & Co Ltd 238,583 (1,702) 636,400 Wynn Macau Ltd 2,643,236 (205,033) 70,000 Xinyi Glass Holdings Ltd 48,938 (12,734) 450,000 Yuexiu Property Co Ltd 89, ,000 Zhaojin Mining Industry Co Ltd 'H' 37,923 (1,878) 998,000 Zhejiang Expressway Co Ltd 'H' 986, , ,500 Zhuzhou CSR Times Electric Co Ltd 'H' 1,424,271 (139,967) 70,557, ,729 Indonesia 1,840,800 Adaro Energy Tbk PT 194,086 (1,729) 675,400 Astra International Tbk PT 411,280 (257) 727,500 Bank Central Asia Tbk PT 674,684 28, ,500 Bank Mandiri Persero Tbk PT 681, , ,900 Bank Negara Indonesia Persero Tbk PT 362,857 72,101 48,200 Gudang Garam Tbk PT 215,932 6, ,700 Indofood Sukses Makmur Tbk PT 126,120 (6,091) 99,500 Matahari Department Store Tbk PT 124,391 (3,655) 1,515,900 Perusahaan Gas Negara Persero Tbk PT 707,816 50, ,200 Perusahaan Perkebunan London Sumatra Indonesia Tbk PT 59,885 (4,113) 1,135,500 Surya Citra Media Tbk PT 309,811 61, ,200 Tambang Batubara Bukit Asam Persero Tbk PT 402,637 57,258 4,745,000 Telekomunikasi Indonesia Persero Tbk PT 1,051, , ,900 Unilever Indonesia Tbk PT 563,774 (28,536) 30,300 United Tractors Tbk PT 56,526 (2,354) 164,100 Wijaya Karya Persero Tbk PT 33, ,976, ,974 Malaysia 52,900 Astro Malaysia Holdings Bhd 55,814 7,179 (41) Berjaya Sports Toto Bhd (49) (49) 65,700 British American Tobacco Malaysia Bhd 1,282,399 20,976 2,362,300 DiGi.Com Bhd 3,973, ,997 34,400 Hong Leong Financial Group Bhd 164,394 1, ,300 IHH Healthcare Bhd 306,480 28,584 Malaysia continued 59,000 Lafarge Malaysia Bhd 180,891 21, ,600 Malayan Banking Bhd 1,890,460 26, ,400 MISC Bhd 288,432 36, ,200 Petronas Gas Bhd 1,050,706 79,168 45,800 PPB Group Bhd 222,853 11, ,100 Sapurakencana Petroleum Bhd 770,075 (65,508) 609,300 Sime Darby Bhd 1,805,684 44, ,500 Telekom Malaysia Bhd 1,283, , ,400 Tenaga Nasional Bhd 630,226 58, YTL Corp Bhd 10 13,905, ,236 Philippines 596,500 Ayala Land Inc 407,910 77,544 7,175 Philippine Long Distance Telephone Co 461,215 30,598 38,900 SM Investments Corp 696,954 75, ,390 Universal Robina Corp 2,439, ,610 4,006, ,026 Singapore 575,000 Asian Pay Television Trust 348,013 (5,596) (750,000) Biosensors International Group Ltd (567,413) (9,305) 1,104,000 CapitaMall Trust (Reit) 1,819, , ,000 ComfortDelGro Corp Ltd 495,429 63, ,000 DBS Group Holdings Ltd 4,226,009 (14,798) (6,000) Ezion Holdings Ltd (10,512) ,000 Genting Singapore Plc 176, ,000 Global Logistic Properties Ltd 378,578 18, ,000 Golden Agri-Resources Ltd 446,922 (26,257) 19,000 Hongkong Land Holdings Ltd 133,380 13,884 2,702,000 Hutchison Port Holdings Trust (Unit) 2,026, ,789 2,000 Keppel Corp Ltd 16, (202,000) Nam Cheong Ltd (62,738) (5,301) 1,365,000 Noble Group Ltd 1,505, , ,000 Oversea-Chinese Banking Corp Ltd 4,410, (3,000) SATS Ltd (7,454) (94) 88,000 Sembcorp Industries Ltd 379,135 (479) 376,000 Singapore Post Ltd 492,570 57,594 (311,000) Singapore Press Holdings Ltd (1,015,450) 10,222 (6,000) SPH REIT (Reit) (4,850) (71) (38,000) Suntec Real Estate Investment Trust (Reit) (54,320) (255) 190,000 UOL Group Ltd 998,646 (7,984) (184,000) Wilmar International Ltd (470,367) (185) 949,000 Yangzijiang Shipbuilding Holdings Ltd 763,311 (93,739) (227,000) Yoma Strategic Holdings Ltd (146,428) (19,960) 16,278, ,648 South Korea 1,630 AJ Rent A Car Co Ltd 24,896 4, Amorepacific Corp 225,575 76,853 1,065 AMOREPACIFIC Group 715, ,805 4,917 Binggrae Co Ltd 404,394 (25,467) 2,260 BS Financial Group Inc 34,408 8, BS Financial Group Inc (Right) ,426 Cheil Industries Inc 157,719 3,825 6,220 Cheil Worldwide Inc 143,419 7,977 (294) CJ CheilJedang Corp (94,992) (12,825) (4,132) CJ Korea Express Co Ltd (459,179) (113,873) 1,189 Cosmax BTI Inc 56,636 (124,392) 11,583 Coway Co Ltd 973, ,349 9,190 Daesang Corp 425,600 69,346 The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 55

58 BlackRock Asia Extension Fund continued Contracts For Difference as at 31 May 2014 Holding Commitment Holding Commitment South Korea continued South Korea continued 20,830 Daewoo International Corp 656,705 (129,109) (75,200) Daewoo Securities Co Ltd (639,828) (25,020) 800 DGB Financial Group Inc 12,219 1,531 (10,750) DuzonBizon Co Ltd (109,989) 1,592 9,695 Eugene Technology Co Ltd 210,255 22, GS Home Shopping Inc 226,666 (15,101) 11,460 GS Retail Co Ltd 258,070 (31,306) 18,538 Hana Financial Group Inc 672,476 (41,422) 4,220 Hanil E-Hwa Co Ltd 91,312 7,963 2,903 Hankook Tire Co Ltd 171,960 11,784 8,960 Hankook Tire Worldwide Co Ltd 204,843 17, Hanmi Pharm Co Ltd 51,117 (8,850) 3,520 Hansae Co Ltd 87,367 23,116 (1,630) Hotel Shilla Co Ltd (147,623) (8,909) 603 Hyundai Engineering & Construction Co Ltd 31,527 (157) 16,430 Hyundai Greenfood Co Ltd 271,058 (5,479) (615) Hyundai Mipo Dockyard (97,246) (7,086) 3,205 Hyundai Mobis 903,745 22,134 13,313 Hyundai Motor Co 2,926,292 5,876 15,410 Hyundai Securities Co Ltd 92,338 9,021 1,340 Hyundai Steel Co 90,265 (8,993) 1,842 Hyundai Wia Corp 324,629 (8,804) 4,934 i-sens Inc 230,674 1,526 24,540 Industrial Bank of Korea 336,378 50, KCC Corp 134,258 18,133 11,981 KCP Co Ltd 129,623 (12,456) 26,216 KGMobilians Co Ltd 399,137 40,196 38,902 Kia Motors Corp 2,239, ,445 (1,080) Kolao Holdings (26,700) ,880 Korea Aerospace Industries Ltd 902,014 72,915 17,360 Korea Electric Power Corp 664, , Korea Gas Corp 28,655 (1,464) 9,470 Korea Investment Holdings Co Ltd 358,828 15,366 (5,680) Korea Kolmar Co Ltd (224,675) (20,699) 4,201 Korea Petrochemical Ind Co Ltd 273,527 (20,999) 6,028 Korea Zinc Co Ltd 2,192, ,283 2 Korean Reinsurance Co ,170 KT Skylife Co Ltd 430,755 (59,363) 14,350 LF Corp 383,566 (12,020) 3,542 LG Chem Ltd 901,669 (26,523) 8,928 LG Corp 530,601 51,115 24,730 LG Display Co Ltd 657,384 (23,700) 661 LG Electronics Inc 47,180 3, LG Household & Health Care Ltd 136,819 18,034 (61,610) Lock & Lock Co Ltd (793,236) 175,153 10,090 LOTTE Himart Co Ltd 665,850 (138,947) 1,456 LS Corp 102, ,687 Lumens Co Ltd 181,237 (25,041) 910 Medy-Tox Inc 117,609 (34,911) 3,440 Mirae Asset Securities Co Ltd 143,312 5,526 1,180 Naver Corp 875,743 86,823 1,263 Neowiz Games Corp 18,796 (1,572) (6,299) NEPES Corp (53,841) (7,668) 1,141 NongShim Co Ltd 346,875 34,599 (24) Orion Corp/Republic of Korea (19,715) 776 4,308 POSCO 1,218,987 (50,392) 14,768 S-1 Corp 1,149,514 2,133 5,160 Samsung C&T Corp 368,806 74,141 5,610 Samsung Card Co Ltd 206,252 14,073 7,223 Samsung Electronics Co Ltd 10,204, ,253 (5,688) Samsung Engineering Co Ltd (453,882) (69,249) 234 Samsung Fire & Marine Insurance Co Ltd 59,568 9,396 (29,220) Samsung Securities Co Ltd (1,174,407) (129,011) 2,821 Seowon Intech Co Ltd 38,668 (3,735) 3,620 Shinhan Financial Group Co Ltd 157,191 12,865 (108) Shinsegae Co Ltd (22,100) ,514 Silicon Works Co Ltd 465,864 73,946 3,975 SK C&C Co Ltd 644, ,961 1,838 SK Holdings Co Ltd 331,123 47,676 13,330 SK Hynix Inc 576,217 54,648 6,001 SK Innovation Co Ltd 625,747 (100,739) 121,640 SK Networks Co Ltd 1,129, , SK Telecom Co Ltd 25,145 1,111 9,636 Tera Semicon Co Ltd 143,405 (17,652) 2,071 Vieworks Co Ltd 57,587 9,507 7,023 Wonik IPS Co Ltd 79,764 21,021 63,260 Woori Investment & Securities Co Ltd 533,902 9, Yuhan Corp 92,281 (5,294) 37,665,069 2,152,128 Taiwan 57,000 AcBel Polytech Inc 72,262 (5,422) (714,000) Acer Inc (462,674) 38, ,000 Advanced Semiconductor Engineering Inc 157,847 18,195 1,594,000 Asia Cement Corp 2,068,479 (1,895) 769,000 AU Optronics Corp 292,599 (2,547) 115,000 Career Technology MFG. Co Ltd 170,059 13,962 1,666,972 Cathay Financial Holding Co Ltd 2,542,627 21,492 1,058,000 Chimei Materials Technology Corp 1,272,729 11, ,000 Chin-Poon Industrial Co Ltd 1,378,084 66,942 (23,000) China Motor Corp (22,203) (308) 32,000 China Steel Chemical Corp 193,537 4,166 (537,000) China Steel Corp (438,986) 8,235 13,000 Chlitina Holding Ltd 105,840 3,254 (277,000) Chong Hong Construction Co (775,977) (232) 409,000 Chunghwa Picture Tubes Ltd 24,736 12,321 1,097,000 Compal Electronics Inc 900,420 68,436 1,724,000 Compeq Manufacturing Co Ltd 1,191, , ,000 Delta Electronics Inc 1,969, , ,000 Elan Microelectronics Corp 288,923 4, Far Eastern Department Stores Ltd (474,000) Far EasTone Telecommunications Co Ltd (1,072,673) (100,308) 452,323 Farglory Land Development Co Ltd 751,554 6,651 (112,000) FLEXium Interconnect Inc (295,143) 49,634 42,000 Formosa Petrochemical Corp 102,305 (4,130) 257,000 Formosa Taffeta Co Ltd 281,404 14,520 83,000 Fubon Financial Holding Co Ltd 119,015 7,040 (186,000) G Tech Optoelectronics Corp (220,351) 77,206 32,000 Giant Manufacturing Co Ltd 252,555 9, ,000 Grand Pacific Petrochemical 446,474 7,558 14,000 Grape King Bio Ltd 61,643 (722) 524,220 Hon Hai Precision Industry Co Ltd 1,609, ,357 (60,000) HTC Corp (319,016) (34,524) 1,905,000 Innolux Corp 750,161 40, ,000 Inotera Memories Inc 968, , ,000 Inventec Corp 379,629 (5,438) 58,000 King Slide Works Co Ltd 790, ,435 65,000 Kingdom Construction Co Ltd 68,904 1,207 26,000 Largan Precision Co Ltd 1,693, ,482 65,000 MediaTek Inc 1,051,923 (61,863) 41,000 Merry Electronics Co Ltd 253,419 56,541 84,000 PChome Online Inc 648,999 5, ,000 Pegatron Corp 269,835 27,947 37,000 President Chain Store Corp 304,926 45,412 42,000 Quanta Computer Inc 112,633 4,225 77,000 Shin Kong Financial Holding Co Ltd 24, ,138,000 Siliconware Precision Industries Co 1,815, ,319 17,000 Simplo Technology Co Ltd 89,258 (609) 56 BlackRock Strategic Funds (BSF)

59 BlackRock Asia Extension Fund continued Contracts For Difference as at 31 May 2014 Holding Commitment Holding Commitment Taiwan continued Thailand continued 79,000 Sino-American Silicon Products Inc 149,639 4, ,000 Taiwan Cement Corp 443,147 (13,328) (30,000) Taiwan Fertilizer Co Ltd (60,513) 553 (494,000) Taiwan Mobile Co Ltd (1,623,547) (139,652) 2,356,000 Taiwan Semiconductor Manufacturing Co Ltd 9,355,886 1,123, ,000 Taiwan Union Technology Corp 575,190 (46,948) 121,000 Teco Electric and Machinery Co Ltd 135,103 (253) 660,000 TXC Corp 973, , ,000 Uni-President Enterprises Corp 1,577,137 59, ,000 United Microelectronics Corp 58,362 3, ,000 Vanguard International Semiconductor Corp 248,783 54, ,000 Wan Hai Lines Ltd 75,687 (1,006) 1,713,000 Winbond Electronics Corp 648,939 93,337 (794,000) Wintek Corp (281,003) 65,787 (1,620,000) Wistron Corp (1,372,767) (18,074) (66,950) Wowprime Corp (974,465) (22,144) (1,733,000) Yang Ming Marine Transport Corp (731,382) 17,786 2,477,000 Yuanta Financial Holding Co Ltd 1,288,196 (39,299) (112,000) Yulon Motor Co Ltd (180,696) 13,561 11,000 Yulon Nissan Motor Co Ltd 131,594 (11,875) 161,000 Yungtay Engineering Co Ltd 386,282 (68,575) 81,000 Zhen Ding Technology Holding Ltd 254,097 11,586 32,946,903 3,368,310 Thailand 137,500 Advanced Info Service PCL 962,626 5,058 42,000 Bangkok Bank PCL 237,542 (2,862) 66,500 BEC World PCL 99,618 (8,367) (108,900) CP ALL PCL (151,481) (6,543) 34,800 Intouch Holdings PCL 78,994 (3,035) 161,100 Jasmine International PCL 38,908 (1,005) 44,600 Kasikornbank PCL 254,974 26,023 5,731 One to One Contacts Co Ltd 1,297 (29,651) 153,400 PTT Exploration & Production PCL 719,868 (28,528) 589,800 PTT Global Chemical PCL 1,239,644 (112,463) 106,900 PTT PCL 960,825 (45,298) 288,400 Samart Corp PCL 175,456 35,658 (541,700) Sansiri PCL (30,968) (1,666) 2,500 Shin Corp PCL 5,675 (144) 79,000 Siam Cement PCL/The 1,004,708 (4,941) (12,300) Total Access Communication PCL (45,124) (6,845) 5,552,562 (184,609) United States 7,061 Dr Reddy's Laboratories Ltd ADR 288,230 (13,448) 1,235 E-Commerce China Dangdang Inc 'A' ADR 12,486 (7,558) 5,269 HDFC Bank Ltd ADR 237,052 22,871 1,071 ICICI Bank Ltd ADR 53,454 7,575 13,929 Infosys Ltd ADR 713,025 (27,848) 375 Philippine Long Distance Telephone Co 564 (24,336) 49,035 Sesa Sterlite Ltd ADR 922, ,932 (444) Sohu.com Inc (26,116) (715) 9,081 Tata Motors Ltd ADR 340,447 (5,504) 57,199 Wipro Ltd ADR 644,061 (119,473) 3,186, ,496 Total market value ( underlying exposure 243,649,138) 190,074,022 8,367,938 Note: The net unrealised appreciation attributed to these transactions is included in the Statement of Net Assets (see Note 2(d)). Credit Suisse, Merrill Lynch and Morgan Stanley are the counterparties to these Contracts for Difference. Open Exchange Traded Futures Contracts as at 31 May 2014 Number of Contracts Contract/ Expiration date Underlying exposure 828 SGX CNX NIFTY Index June ,966,256 (174,897) Total 11,966,256 (174,897) Note: The net unrealised depreciation of attributed to these transactions is included in the Statement of Net Assets (see Notes 2(d)). Sector Breakdown as at 31 May 2014 Open Forward Foreign Exchange Transactions as at 31 May 2014 Purchases Sales date GBP 3,770 6,365 13/6/2014 (53) Net unrealised depreciation ( underlying exposure 6,312) (53) Note: The net unrealised depreciation attributed to these transactions is included in the Statement of Net Assets (see Note 2(d)). State Street Bank and Trust Company is the counterparty to these Open Forward Foreign Exchange Transactions. % of Net Assets* Financial Government Other Net Assets * Based on the market value of the Portfolio of Investments except for Contract For Difference, which are based on the commitment (where applicable). The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 57

60 BlackRock Emerging Markets Absolute Return Fund Portfolio of Investments as at 31 May 2014 Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding Market % Holding Market % COMMON STOCKS (SHARES) & RIGHTS Brazil 75 CETIP SA - Mercados Organizados (Right) ,436 CETIP SA - Mercados Organizados 1,347, ,041 Cyrela Brazil Realty SA Empreendimentos e Participacoes 1,277, ,825 Vale SA ADR 976, ,601, China 2,512,999 Bank of China Ltd 'H' 1,199, ,000 China Oilfield Services Ltd 'H' 856, ,034,000 Dongfeng Motor Group Co Ltd 'H' 1,576, ,453,000 Industrial & Commercial Bank of China Ltd 'H' 940, ,573, Cyprus 50,281 Globaltrans Investment Plc GDR Reg 550, , Egypt 280,622 Global Telecom Holding GDR 1,027, ,027, Hungary 8,497 MOL Hungarian Oil & Gas Plc 494, ,512 OTP Bank Plc 681, ,176, India 12,683 Axis Bank Ltd 392, ,857 Axis Bank Ltd GDR Reg 1,122, ,000 Bank of India 1,087, ,602, Mexico 72,312 America Movil SAB de CV 'L' ADR 1,419, ,688 Mexico Real Estate Management SA de CV REIT 1,090, ,421 Wal-Mart de Mexico SAB de CV 'V' 1,272, ,782, Peru 91,590 Cia de Minas Buenaventura SAA ADR 956, , Poland 14,390 KGHM Polska Miedz SA 552, , Portugal 46,603 Jeronimo Martins SGPS SA 795, , Russia 4,966 Magnit OJSC 1,249, ,903 Mobile TeleSystems OJSC (traded in United States) 811, ,995 Mobile TeleSystems OJSC (traded in Russia) 648, ,139 NovaTek OAO GDR Reg 1,184, ,370 Sberbank of Russia 1,696, ,591, South Korea 3,292 Hyundai Mobis Co Ltd 929, ,762 Kia Motors Corp 908, ,837, Turkey 2,570,000 Dogan Sirketler Grubu Holding AS 1,017, ,497 Turkiye Halk Bankasi AS 1,870, ,887, Total Common Stocks (Shares) & Rights 29,934, Total Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market 29,934, Funds Ireland 439,730 Institutional Cash Series Plc - Institutional US Dollar Liquidity Fund 1 439, , Total Funds 439, Securities portfolio at market value 30,374, Other Net Assets 11,696, Total Net Assets () 42,070, This fund is managed by BlackRock. 58 BlackRock Strategic Funds (BSF)

61 BlackRock Emerging Markets Absolute Return Fund continued Contracts For Difference as at 31 May 2014 Holding Commitment Holding Commitment China (66,500) Tencent Holdings Ltd (934,959) 17,178 (934,959) 17,178 France (28,772) Tarkett SA (1,149,607) (92,096) (1,149,607) (92,096) Hong Kong (152,800) Sands China Ltd (1,113,566) (438) (898,000) Shandong Weigao Group Medical Polymer Co Ltd 'H' (873,357) 78,354 (143,933) Tsingtao Brewery Co Ltd 'H' (1,132,490) (69,306) (3,119,413) 8,610 Poland (13,215) Bank Pekao SA (815,609) (29,104) (173,595) PGE SA (1,199,650) (136,966) (7,469) Powszechny Zaklad Ubezpieczen SA (1,098,794) (40,540) (3,114,053) (206,610) South Africa (66,263) Barloworld Ltd (634,471) (17,641) (88,063) Coronation Fund Managers Ltd (855,063) (116,306) (150,144) Woolworths Holdings Ltd/ South Africa (1,077,800) (76,618) (2,567,334) (210,565) Thailand (292,766) BTS Group Holdings PCL (7,045) (7,045) (7,045) (7,045) Turkey (306,585) Enka Insaat ve Sanayi AS (854,429) (28,228) (850,152) Eregli Demir ve Celik Fabrikalari TAS (1,269,853) (133,902) (2,124,282) (162,130) United Kingdom (157,060) Aberdeen Asset Management Plc (1,160,869) (61,295) (30,277) Ultrapar Participacoes SA (725,173) 9,710 (1,886,042) (51,585) United States (150,258) Airports of Thailand PCL (857,763) (73,897) 368,511 Asia Plastic Recycling Holding Ltd 833,940 (127,231) (351,700) Axiata Group Bhd (757,878) (46,312) (1,498,800) Ayala Land Inc (1,027,277) (122,894) (476,366) Bank of the Philippine Islands (919,625) 18,731 (167,079) BM&FBovespa SA (850,816) (4,494) (46,868) BRF SA (1,015,644) (123,984) (2,252,554) BTS Group Holdings PCL (579,582) (7,972) (9,444) Coca-Cola Femsa SAB de CV ADR (1,102,776) (77,392) (796,100) CP ALL PCL (1,102,837) (60,970) (402,665) Dubai Islamic Bank PJSC (849,632) (20,854) (92,378) El Puerto de Liverpool SAB de CV 'C1' (1,054,384) (72,894) (160,000) Firich Enterprises Co Ltd (919,840) (109,149) (89,400) Group BTG Pactual (Unit) (1,349,430) (231,450) (883,400) IHH Healthcare Bhd (1,128,985) (81,011) (26,589) Lenta Ltd GDR Reg (316,409) (65,356) (19,949) Magnit OJSC GDR Reg (1,172,004) (106,041) (37,400) Market Vectors Russia ETF (944,350) (110,704) (62,000) Masraf Al Rayan (1,117,409) (273,017) (626,900) Sapurakencana Petroleum Bhd (812,839) 18,262 27,010 SK Hynix Inc 1,168, ,281 (184,600) Total Access Communication PCL NVDR (674,436) (118,232) (435,500) United Tractors Tbk PT (808,506) (15,525) (402,000) VTB Bank OJSC GDR Reg (1,083,993) (251,188) (18,444,168) (1,949,293) Total market value ( underlying exposure 37,315,932) (33,346,903) (2,653,536) Note: The net unrealised depreciation attributed to these transactions is included in the Statement of Net Assets (see Note 2(d)). Citibank, Credit Suisse and Deutsche Bank are the counterparties to these Contracts for Difference. The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 59

62 BlackRock Emerging Markets Absolute Return Fund continued Time Deposit as at 31 May 2014 Market % TIME DEPOSITS ING Bank NV 4,430, Lloyds Bank Plc 420, Societe Generale SA 4,430, Total Time Deposits 9,280, Open Forward Foreign Exchange Transactions as at 31 May 2014 Purchases Sales date 5,598,628 7,700,115 13/6/2014 (74,685) GBP 1,325,604 2,238,383 13/6/2014 (18,825) 883, ,125 13/6/2014 2,110 24,130 GBP 14,365 13/6/ ,594,480 PLN 4,899,000 29/8/2014 (8,915) 327,762 TRY 704,000 29/8/2014 (1,567) 748,568 ZAR 7,970,000 29/8/2014 3,426 Net unrealised depreciation ( underlying exposure 13,428,298) (98,377) Note: The net unrealised depreciation attributed to these transactions is included in the Statement of Net Assets (see Note 2(d)). Goldman Sachs International, Morgan Stanley and Co and State Street Bank and Trust Company are the counterparties to these Open Forward Foreign Exchange Transactions. Sector Breakdown as at 31 May 2014 % of Net Assets* Financial Consumer, Cyclical Communications 9.29 Energy 6.03 Basic Materials 5.90 Consumer, Non-cyclical 4.86 Diversified 2.42 Industrial 1.31 Funds 1.05 Other Net Assets * Based on the market value of the Portfolio of Investments except for Contract For Difference, which are based on the commitment (where applicable). Open Exchange Traded Futures Contracts as at 31 May 2014 Number of Contracts Contract/ Expiration date Underlying exposure (343) FTSE/ATHEX 20 June ,439 (49,627) Total 924,439 (49,627) Note: The net unrealised depreciation of attributed to these transactions is included in the Statement of Net Assets (see Note 2(d)). 60 BlackRock Strategic Funds (BSF)

63 BlackRock Emerging Markets Allocation Fund Portfolio of Investments as at 31 May 2014 Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding Market % of Net Assets Holding Market % of Net Assets BONDS 200, , , , , , , , , , , , , , , , ,000 Azerbaijan State Oil Co of the Azerbaijan Republic 4.75% 13/3/ , , Brazil Banco Nacional de Desenvolvimento Economico e Social 3.375% 26/9/ , Brazilian Government International Bond 5.875% 15/1/ , Brazilian Government International Bond 8.25% 20/1/ , Caixa Economica Federal 3.50% 7/11/ , ,876, British Virgin Islands Sinochem Overseas Capital Co Ltd 4.50% 12/11/ , Sinopec Group Overseas Development 2013 Ltd 4.375% 17/10/ , State Grid Overseas Investment 2013 Ltd 3.125% 22/5/ , , Chile Chile Government International Bond 2.25% 30/10/ , Corp Nacional del Cobre de Chile 7.50% 15/1/ , Corp Nacional del Cobre de Chile 4.50% 13/8/ , Corp Nacional del Cobre de Chile 4.25% 17/7/ , Empresa Nacional del Petroleo 4.75% 6/12/ , ,120, Colombia Colombia Government International Bond 7.375% 27/1/ , Colombia Government International Bond 4.375% 12/7/ , Colombia Government International Bond 2.625% 15/3/ , Colombia Government International Bond 7.375% 18/9/ , ,454, , , , , , , , , , ,000 Costa Rica Banco Nacional de Costa Rica 4.875% 1/11/ , Costa Rica Government International Bond 4.375% 30/4/ , , India Export-Import Bank of India 4.00% 14/1/ , , Indonesia Indonesia Government International Bond 5.875% 15/1/ , Indonesia Government International Bond 6.75% 15/1/ , Pertamina Persero PT 4.30% 20/5/ , Perusahaan Listrik Negara PT 5.50% 22/11/ , ,539, Ireland Russian Railways via RZD Capital Plc 5.739% 3/4/ , Vnesheconombank Via VEB Finance PLC 6.025% 5/7/ , , Kazakhstan KazMunayGas National Co JSC 4.40% 30/4/ , , Latvia 400,000 Republic of Latvia 2.75% 12/1/ , , , ,000 Lithuania Lithuania Government International Bond 6.625% 1/2/ , , Luxembourg Russian Agricultural Bank OJSC Via RSHB Capital SA 5.298% 27/12/ , , Malaysia 800,000 Petronas Capital Ltd 5.25% 12/8/ , , The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 61

64 BlackRock Emerging Markets Allocation Fund continued Portfolio of Investments as at 31 May 2014 Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding Market % of Net Assets Holding Market % of Net Assets Mexico 200,000 America Movil SAB de CV 6.375% 1/3/ , ,000 Mexico Government International Bond 3.50% 21/1/ , ,000 Mexico Government International Bond 4.75% 8/3/ , ,000 Mexico Government International Bond 5.75% 12/10/ , ,000 Petroleos Mexicanos 5.50% 21/1/ , ,000 Petroleos Mexicanos 6.50% 2/6/ , ,742, , , , ,000 Morocco Morocco Government International Bond 5.50% 11/12/ , , Netherlands Kazakhstan Temir Zholy Finance BV 6.375% 6/10/ , , Panama Panama Government International Bond 7.125% 29/1/ , Panama Government International Bond 4.30% 29/4/ , , Peru 150,000 Fondo MIVIVIENDA SA 3.50% 31/1/ , ,000 Peruvian Government International Bond 7.125% 30/3/ , ,000 Peruvian Government International Bond 7.35% 21/7/ , ,000 Peruvian Government International Bond 6.55% 14/3/ , ,103, ,000 1,000, , ,000 PLN 700,000 Philippines Philippine Government International Bond 8.375% 17/6/ , Philippine Government International Bond 4.20% 21/1/2024 1,074, Philippine Government International Bond 5.00% 13/1/ , ,720, Poland Poland Government Bond 6.375% 15/7/ , Poland Government Bond 4.00% 25/10/ , , , , ,000 88, ,000 Poland continued Poland Government International Bond 5.00% 23/3/ , ,713, Romania Romanian Government International Bond 4.875% 22/1/ , , Russia Russian Foreign Bond - Eurobond 3.50% 16/1/ , Russian Foreign Bond - Eurobond 4.875% 16/9/ , Russian Foreign Bond - Eurobond 12.75% 24/6/ , ,376, Slovakia Slovakia Government International Bond 4.375% 21/5/ , , South Africa 200,000 Eskom Holdings SOC Ltd 6.75% 6/8/ , ,000 South Africa Government Bond 5.875% 30/5/ , ,000 South Africa Government International Bond 4.665% 17/1/ , ,000 South Africa Government International Bond 5.875% 16/9/ , ,000 Transnet SOC Ltd 4.00% 26/7/ , ,184, , , ,000 1,000, , , ,000 1,000,000 Turkey Turkey Government International Bond 7.50% 7/11/ , Turkey Government International Bond 5.75% 22/3/ , Turkey Government International Bond 4.875% 16/4/ , ,641, United States Freddie Mac Discount Notes 1/7/2014 (Zero Coupon) 999, Goldman Sachs Group Inc/The 6.125% 15/2/ , United States Treasury Bill 16/10/2014 (Zero Coupon) 749, United States Treasury Bill 13/11/2014 (Zero Coupon) 749, United States Treasury Bill 20/11/2014 (Zero Coupon) 999, ,738, BlackRock Strategic Funds (BSF)

65 BlackRock Emerging Markets Allocation Fund continued Portfolio of Investments as at 31 May 2014 Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding Market % of Net Assets Holding Market % of Net Assets Uruguay 400,000 Uruguay Government International Bond 4.50% 14/8/ , ,000 Uruguay Government International Bond 4.125% 20/11/ , , Total Bonds 27,914, CERTIFICATES OF DEPOSIT United States 500,000 Bank Of Nova Scotia 0.25% 12/11/ , ,000 Cooperatieve Centrale Raiffeisen- Boerenleenbank BA/Netherlands 0.01% 9/2/ , ,000,000 Credit Suisse AG 0.50% 9/6/2014 1,000, ,000 DnB NOR Bank ASA 0.22% 10/7/ , ,000,000 Mizuho Bank Ltd 0.21% 15/7/2014 1,000, ,000 Mizuho Bank Ltd 0.02% 9/6/ , ,000 Natixis 0.22% 30/6/ , ,000 Nordea Bank Finland Plc 0.29% 20/11/ , ,000 Nordea Bank Finland Plc 0.205% 10/10/ , ,000,000 Royal Bank of Canada 0.235% 23/10/2014 1,000, ,000 Sumitomo Mitsui Banking Corp 0.22% 25/7/ , ,751, Total Certificates of Deposit 6,751, COMMERCIAL PAPER United States 486,000 Alpine Securitization Corp 22/10/2014 (Zero Coupon) 485, ,000 Bank of Nova Scotia 9/7/2014 (Zero Coupon) 499, ,000 Bank of Nova Scotia 15/8/2014 (Zero Coupon) 499, ,000 Bank of Tokyo-Mitsubishi UFJ Ltd/ The 9/6/2014 (Zero Coupon) 199, United States continued 650,000 Bank of Tokyo-Mitsubishi UFJ Ltd/ The 27/6/2014(Zero Coupon) 649, ,000 Bank of Tokyo-Mitsubishi UFJ Ltd/ The 28/5/2014 (Zero Coupon) 650, ,000,000 Caisse centrale Desjardins du Quebec 3/7/2014 (Zero Coupon) 999, ,000 ING US Funding LLC 2/7/2014 (Zero Coupon) 499, ,000 ING US Funding LLC 3/7/2014 (Zero Coupon) 499, ,000 LMA Americas LLC 24/6/2014 (Zero Coupon) 599, ,000 LMA Americas LLC '144A' 6/6/2014 (Zero Coupon) 599, ,400,000 Oversea Chinese Banking Corp Ltd 7/7/2014 (Zero Coupon) 1,399, ,000 Oversea Chinese Banking Corp Ltd 14/7/2014 (Zero Coupon) 199, ,000 Rabobank USA Financial Corp 1/10/2014 (Zero Coupon) 649, ,000 Regency Markets No.1 LLC 16/6/2014 (Zero Coupon) 599, ,000 Salisbury Receivables Co LLC 9/6/2014 (Zero Coupon) 719, ,000 Scaldis Capital LLC 13/6/2014 (Zero Coupon) 499, ,000 Sheffield Receivables Corp 11/7/2014 (Zero Coupon) 499, ,000 Societe Generale North America Inc 4/8/2014 (Zero Coupon) 499, ,500,000 Svenska Handelsbanken Inc 11/6/2014 (Zero Coupon) 1,499, ,753, Total Commercial Paper 12,753, Total Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market 47,419, Securities portfolio at market value 47,419, Other Net Assets 4,182, Total Net Assets () 51,601, The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 63

66 BlackRock Emerging Markets Allocation Fund continued Contracts For Difference as at 31 May 2014 Holding Commitment Holding Commitment Australia 119 BHP Billiton Ltd 4,093 (170) 115 Fortescue Metals Group Ltd 471 (35) 50 Rio Tinto Ltd 2,755 (185) 15 Woodside Petroleum Ltd 588 (3) 7,907 (393) Austria 31 Erste Group Bank AG 1, OMV AG 1,112 (34) 2, Belgium 41 Anheuser-Busch InBev NV 4, Solvay SA 647 (1) 5, Brazil 2,900 AES Tiete SA (Pref) 22, (32,300) Aliansce Shopping Centers SA (263,841) 6, ,400 AMBEV SA 760,439 (25,004) 147 AMBEV SA - RCT 1,061 (29) 5,000 Banco Bradesco SA (Pref) 70,833 (7,892) 17,400 Banco do Brasil SA 178,730 (10,084) (14,400) BB Seguridade Participacoes (181,540) 4,658 (3,500) BR Malls Participacoes SA (29,104) 870 (38,900) BR Properties SA (316,019) (5,843) 29,100 Bradespar SA (Pref) 244,575 (23,137) (52,200) Brookfield Incorporacoes SA (34,428) 395 9,300 Cia Brasileira de Distribuicao (Pref) 423,598 (10,965) 17,700 Cia Energetica de Minas Gerais GER (Pref) 125,099 (3,873) 23,200 Cia Energetica de Sao Paulo 'B' (Pref) 273,562 (14,622) 1,300 CPFL Energia SA 10,694 (88) 22,700 Cyrela Brazil Realty SA Empreendimentos e Participacoes 135,451 (3,603) (20,910) Duratex SA (85,261) 8,753 (1,100) EcoRodovias Infraestrutura e Logistica SA (7,152) (146) 1,800 EDP - Energias do Brasil SA 7,540 (328) (29,600) Equatorial Energia SA (300,485) (5,556) 49,700 Even Construtora e Incorporadora SA 151,492 (8,682) (700) Fibria Celulose SA (6,485) 456 6,600 Gerdau SA (Pref) 40,088 (1,857) 16,700 Itau Unibanco Holding SA (Pref) 264,491 (16,130) 146,992 Itausa - Investimentos Itau SA (Pref) 569,234 (37,873) 75,500 Klabin SA (Pref) 76, Klabin SA - Rights- (Right) 1 6,400 Light SA 57, (4,000) Marcopolo SA (Pref) (8,449) (1,291) 40,700 Marfrig Global Foods SA 95,583 6,991 (8,600) Mills Estruturas e Servicos de Engenharia SA (99,605) (2,307) 2,400 MRV Engenharia e Participacoes SA 7,562 (54) 5,500 Multiplus SA 81,520 3,472 (6,500) Natura Cosmeticos SA (115,720) 2,353 55,100 Petroleo Brasileiro SA (Pref) 420,616 (27,605) 14,200 Randon Participacoes SA (Pref) 42, (12,100) Smiles SA (221,025) (4,609) 3,300 Souza Cruz SA 34, ,300 Telefonica Brasil SA (Pref) 46,830 (1,092) (24,500) Tim Participacoes SA (132,545) (799) 42,900 Vale SA (Pref) 495,147 (50,432) Brazil continued 6,400 Valid Solucoes e Servicos de Seguranca em Meios de Pagamento e Identificacao SA 103,872 1,722 7,050 Via Varejo SA 75,684 (7,012) 3,015,243 (231,672) Canada 45 Bank of Nova Scotia 2, Franco-Nevada Corp 688 (47) 9 Methanex Corp 520 (28) 4,076 (2) Chile 494,134 Banco Santander Chile 31,424 1,137 8,706 Cap SA 127,158 (12,568) 25,006 Cencosud SA 87,974 2,106 38,345 Enersis SA 12, ,114 (9,241) Czech Republic (261) CEZ AS (7,600) (233) 494 Telefonica Czech Republic AS 7,153 (326) (447) (559) Denmark 18 Carlsberg A/S 'B' 1, FLSmidth & Co A/S 639 (31) 89 Novo Nordisk A/S 'B' 3, Novozymes A/S 'B' 1, , Egypt 95,988 Telecom Egypt Co 175,857 (15,915) 175,857 (15,915) Finland 18 Kone OYJ 'B' 745 (20) 137 Nokia OYJ 1, , France 15 Accor SA Air Liquide SA 1, Airbus Group NV 1, Alcatel-Lucent Alstom SA Carrefour SA 945 (64) 6 Casino Guichard Perrachon SA Christian Dior SA 1,032 7 Cie Generale des Etablissements Michelin Danone SA 1, Essilor International SA 1, Hermes International Kering 1, L'Oreal SA 2, Lafarge SA 1,028 (72) 14 Legrand SA 879 (28) 14 LVMH Moet Hennessy Louis Vuitton SA 2, Pernod Ricard SA 1, Renault SA 1,029 (83) 37 Sanofi 3, BlackRock Strategic Funds (BSF)

67 BlackRock Emerging Markets Allocation Fund continued Contracts For Difference as at 31 May 2014 Holding Commitment Holding Commitment France continued Hong Kong continued 20 Schneider Electric SA 1,870 (22) 7 Technip SA 754 (39) 64 Total SA 4, , Germany 10 adidas AG 1,069 (9) 24 Bayer AG 3, Bayerische Motoren Werke AG 2, Beiersdorf AG Continental AG 1, Daimler AG 2, Deutsche Lufthansa AG Deutsche Post AG 1, Evonik Industries AG HeidelbergCement AG Henkel AG & Co KGaA (Pref) 1, Infineon Technologies AG 1, Linde AG 1, MAN SE 874 (18) 8 Merck KGaA 1, Metro AG SAP AG 2, Volkswagen AG (Pref) 3, , Greece 2,619 Athens Water Supply & Sewage Co SA/The 32, Folli Follie SA 4, Metka SA 7, ,061 Mytilineos Holdings SA 18, ,520 Public Power Corp SA 129,740 5, ,238 8,738 Hong Kong 169,000 Agricultural Bank of China Ltd 'H' 75,206 1,918 (44,000) Air China Ltd 'H' (25,029) 1,453 (716,000) Aluminum Corp of China Ltd 'H' (255,821) (4,094) 67,000 Anhui Conch Cement Co Ltd 'H' 240,250 (11,703) 125,000 ANTA Sports Products Ltd 183,806 (11,033) (280,000) AviChina Industry & Technology Co Ltd 'H' (151,327) (12,139) 593,000 Bank of China Ltd 'H' 283,009 14,184 68,000 Bank of Communications Co Ltd 'H' 45,610 1,812 45,500 BBMG Corp 'H' 30,518 (1,244) (24,000) Beijing Enterprises Holdings Ltd (207,101) 16,892 (286,000) Beijing Enterprises Water Group Ltd (183,713) 4,492 22,000 Belle International Holdings Ltd 21,850 (2,103) (28,500) Biostime International Holdings Ltd (193,180) (6,957) (66,000) Brilliance China Automotive Holdings Ltd (109,308) 385 (8,500) BYD Electronic International Co Ltd (5,592) (631) 182,000 China Agri-Industries Holdings Ltd 75,122 2, ,000 China Cinda Asset Management Co Ltd 'H' 144,607 (7,933) 64,000 China CITIC Bank Corp Ltd 'H' 37,148 (1,644) (251,000) China Coal Energy Co Ltd 'H' (142,776) (7,936) 852,000 China Communications Construction Co Ltd 'H' 568,165 (24,387) 568,000 China Construction Bank Corp 'H' 416,141 12,059 (317,000) China COSCO Holdings Co Ltd 'H' (123,075) 26,552 (188,000) China Dongxiang Group Co (32,979) 732 (207,000) China Everbright International Ltd (263,531) (43,656) 41,000 China Galaxy Securities Co Ltd 'H' 26, ,000 China Gas Holdings Ltd 32,143 2,208 (156,000) China High Speed Transmission Equipment Group Co Ltd (105,841) 3,193 97,000 China Life Insurance Co Ltd 'H' 265,873 13,687 (245,000) China Longyuan Power Group Corp 'H' (272,091) 33,279 (10,000) China Medical System Holding Ltd (11,751) (167) 11,000 China Mengniu Dairy Co Ltd 53,987 (1,150) 36,000 China Merchants Bank Co Ltd 'H' 66,309 2,556 40,500 China Minsheng Banking Corp Ltd 'H' 41, ,000 China Oilfield Services Ltd 'H' 610,343 20, ,000 China Overseas Land & Investment Ltd 303,737 10,669 1,000 China Pacific Insurance Group Co Ltd 'H' 3, ,000 China Petroleum & Chemical Corp 'H' 518,675 (808) 191,000 China Power International Development Ltd 67,257 (3,359) 243,500 China Railway Construction Corp Ltd 'H' 205,724 (9,791) 294,000 China Railway Group Ltd 'H' 135,761 (9,519) 216,000 China Resources Cement Holdings Ltd 135,405 (6,718) (66,000) China Resources Enterprise Ltd (184,734) 23,829 60,000 China Resources Land Ltd 121,970 2,411 36,000 China Resources Power Holdings Co Ltd 94,496 3,644 75,500 China Shenhua Energy Co Ltd 'H' 206,456 (3,946) (596,000) China Shipping Container Lines Co Ltd 'H' (143,758) 5,925 (116,000) China Shipping Development Co Ltd 'H' (64,039) 5,336 (20,000) China Southern Airlines Co Ltd 'H' (5,753) 525 (178,000) China State Construction International Holdings Ltd (305,822) (9,795) (36,000) China Suntien Green Energy Corp Ltd 'H' (12,212) ,000 China Telecom Corp Ltd 'H' 110,954 (1,743) (42,000) China Tian Lun Gas Holdings Ltd (50,057) (7,242) 198,000 China Travel International Investment Hong Kong Ltd 40,097 (913) (52,000) China Yurun Food Group Ltd (23,610) ,000 Chongqing Rural Commercial Bank 'H' 8, ,000 CNOOC Ltd 222,347 (410) 116,000 Coolpad Group Ltd 28,429 8, ,000 COSCO Pacific Ltd 292,650 (4,101) (230,000) CSPC Pharmaceutical Group Ltd (181,858) (17) 169,000 CSR Corp Ltd 'H' 124, ,000 Datang International Power Generation Co Ltd 'H' 30,283 1, ,000 Dongfeng Motor Group Co Ltd 'H' 176,856 20,330 26,000 Forgame Holdings Ltd 100,609 (4,708) (57,500) Fosun International Ltd (67,863) 4, ,000 Franshion Properties China Ltd 109,525 (454) (481,000) GCL-Poly Energy Holdings Ltd (149,522) (8,669) 425,000 Geely Automobile Holdings Ltd 158,976 9, ,000 GOME Electrical Appliances Holding Ltd 67,408 (5,730) (8,500) Great Wall Motor Co Ltd (35,029) (3,720) 4,500 Greentown China Holdings Ltd 4,400 (134) 132,000 Guangdong Investment Ltd 145,744 (3,118) 66,000 Guangzhou Automobile Group Co Ltd 'H' 69,297 4,496 The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 65

68 BlackRock Emerging Markets Allocation Fund continued Contracts For Difference as at 31 May 2014 Holding Commitment Holding Commitment Hong Kong continued 20,000 Guangzhou Baiyunshan Pharmaceutical Holdings Co Ltd 61,914 5, ,000 Guangzhou R&F Properties Co Ltd 'H' 175,339 6,631 (14,000) Hengan International Group Co Ltd (147,986) 462 (296,000) Honghua Group Ltd (70,251) 6, ,000 Hopewell Highway Infrastructure Ltd 153, ,000 Huadian Power International Corp Ltd 'H' 40,399 (59) 14,000 Huaneng Power International Inc 14, ,000 Industrial & Commercial Bank of China Ltd 'H' 376,205 14,419 (20,000) Intime Retail Group Co Ltd (19,425) 1,886 54,500 Kingboard Chemical Holdings Ltd 102,353 (3,733) (14,000) Kingdee International Software Group Co Ltd (4,587) (505) (20,000) Kunlun Energy Co Ltd (32,556) (564) (126,000) Lenovo Group Ltd (155,860) (12,495) (358,000) Li Ning Co Ltd (252,127) 54,852 17,000 Longfor Properties Co Ltd 21,555 (178) 13,700 New China Life Insurance Co Ltd 'H' 42,941 1,313 (30,000) Nine Dragons Paper Holdings Ltd (19,464) 935 (89,000) Parkson Retail Group Ltd (26,404) 1, ,000 PetroChina Co Ltd 'H' 240, ,000 Ping An Insurance Group Co of China Ltd 'H' 239,315 9,551 (2,471,000) Semiconductor Manufacturing International Corp (210,359) (12,167) (136,000) Shandong Weigao Group Medical Polymer Co Ltd 'H' (133,145) 8, ,000 Shanghai Industrial Holdings Ltd 474,748 5,793 59,000 Shenzhen International Holdings Ltd 70,166 3, ,000 Shenzhen Investment Ltd 170, (19,000) Shenzhou International Group Holdings Ltd (66,170) 1,196 91,500 Shimao Property Holdings Ltd 183,643 3,653 (32,000) Shougang Fushan Resources Group Ltd (7,842) 1,392 (73,500) Shui On Land Ltd (19,340) 888 (22,000) Sihuan Pharmaceutical Holdings Group Ltd (26,334) (2,106) (20,000) Sino Biopharmaceutical (16,355) (337) 162,500 Sino-Ocean Land Holdings Ltd 85, (4,500) Sinopec Engineering Group Co Ltd 'H' (5,160) (53) (156,000) Sinopec Kantons Holdings Ltd (130,189) 2,673 26,800 Sinopharm Group Co Ltd 'H' 72,594 2,224 (8,000) Skyworth Digital Holdings Ltd (3,818) 551 (29,500) SOHO China Ltd (23,135) (273) 39,500 Sun Art Retail Group Ltd 46,466 (4,145) 51,000 Sunac China Holdings Ltd 26, ,000 Tencent Holdings Ltd 544,800 64,627 54,000 Tingyi Cayman Islands Holding Corp 153, (34,000) Tsingtao Brewery Co Ltd 'H' (266,860) 323 (29,400) Uni-President China Holdings Ltd (5,537) (5,537) (147,000) Uni-President China Holdings Ltd (113,197) 17,076 (12,000) Weichai Power Co Ltd 'H' (44,500) (1,631) (23,000) Wumart Stores Inc 'H' (20,411) 2,419 3,000 Yingde Gases Group Co Ltd 3, ,000 Yuexiu Property Co Ltd 44, ,500 Zhaojin Mining Industry Co Ltd 'H' 76,657 (3,480) 148,000 Zhejiang Expressway Co Ltd 'H' 146,229 7,396 (9,500) Zhongsheng Group Holdings Ltd (11,972) (449) 55,000 Zhuzhou CSR Times Electric Co Ltd 'H' 160,685 (4,287) 5,289, ,368 Hungary 5,360 OTP Bank Plc 115,955 7,338 (8,741) Richter Gedeon Nyrt (165,116) (3,576) (49,161) 3,762 Indonesia 127,700 Adaro Energy Tbk PT 13,399 (841) 71,400 Adhi Karya Persero Tbk PT 19,142 (948) (171,100) AKR Corporindo Tbk PT (60,453) 10,111 26,600 Bank Central Asia Tbk PT 24,550 (1,829) 61,400 Bank Mandiri Persero Tbk PT 53,511 (1,998) 81,500 Bank Negara Indonesia Persero Tbk PT 33,333 (1,986) 274,400 Bank Rakyat Indonesia Persero Tbk PT 239,733 (13,797) 24,600 Bumi Serpong Damai PT 3,392 (54) 18,500 Holcim Indonesia Tbk PT 4,278 (273) (126,500) Indofood CBP Sukses Makmur Tbk PT (110,518) 3,569 29,700 Indofood Sukses Makmur Tbk PT 17,362 (410) 26,100 Matahari Department Store Tbk PT 32,471 (1,809) 633,600 Matahari Putra Prima Tbk PT 168,236 12,031 94,800 Pembangunan Perumahan Persero Tbk PT 15,509 (141) 41,700 Perusahaan Perkebunan London Sumatra Indonesia Tbk PT 8,251 (293) 34,700 Semen Indonesia Persero Tbk PT 43,765 (4,591) 77,300 Tambang Batubara Bukit Asam Persero Tbk PT 70,845 (576) 860,700 Telekomunikasi Indonesia Persero Tbk PT 189,833 9,227 1,900 United Tractors Tbk PT 3,528 (199) (67,500) XL Axiata Tbk PT (31,654) (840) 738,513 4,353 Japan 100 Inpex Corp 1, Kirin Holdings Co Ltd 1, Nissan Motor Co Ltd 1, Renesas Electronics Corp Toyota Motor Corp 5, , Malaysia 14,000 British American Tobacco Malaysia Bhd 274,074 (2,288) 400 Dialog Group BHD ,800 DiGi.Com Bhd 294,870 (4,788) (14,400) Gamuda Bhd (19,720) ,100 Hong Leong Bank Bhd 56,591 (363) 2,800 Hong Leong Financial Group Bhd 13,421 (361) 17,700 IHH Healthcare Bhd 22, ,000 Lafarge Malaysia Bhd 30,750 1,985 67,900 Malayan Banking Bhd 208,793 (481) (196,400) Maxis Bhd (401,602) 19,255 62,300 MISC Bhd 119,830 (5,931) (46,600) Petronas Dagangan Bhd (366,070) 23,173 5,400 Petronas Gas Bhd 41,176 2,376 2,700 PPB Group Bhd 13, ,900 Sapurakencana Petroleum Bhd 47,891 (1,271) 126,400 Sime Darby Bhd 375,699 2, ,800 Telekom Malaysia Bhd 270,820 (5,479) 180,000 Tenaga Nasional Bhd 675,630 25,185 1,658,426 54, BlackRock Strategic Funds (BSF)

69 BlackRock Emerging Markets Allocation Fund continued Contracts For Difference as at 31 May 2014 Holding Commitment Holding Commitment Mexico (42,100) Alfa SAB de CV 'A' (120,181) (1,752) 170,100 America Movil SAB de CV 'L' 167,281 (4,164) 90,456 Cemex SAB de CV 'CPO' 118,000 5,581 (9,900) Coca-Cola Femsa SAB de CV 'L' (115,931) 562 (46,100) Compartamos SAB de CV (81,282) (1,481) (4,100) El Puerto de Liverpool SAB de CV (46,711) (1,774) 8,100 Gruma SAB de CV 'B' 82,813 6,694 59,100 Grupo Aeroportuario del Pacifico SAB de CV 'B' 366,321 5,086 10,600 Grupo Aeroportuario del Sureste SAB de CV 'B' 137,099 3,129 4,700 Grupo Carso SAB de CV 'A1' 24,389 (200) 6,600 Grupo Financiero Banorte SAB de CV 'O' 48,544 2,446 2,400 Grupo Financiero Inbursa SAB de CV 'O' 6, ,200 Grupo Financiero Santander Mexico SAB de CV 'B' 40, ,182 Grupo Lala SAB De CV 152,061 5,593 (12,484) Industrias CH SAB de CV 'B' (70,033) (1,348) 5,617 Industrias Penoles SAB de CV 138,578 1,820 83,900 Kimberly-Clark de Mexico SAB de CV 'A' 229,331 (78) (57,700) Mexichem SAB de CV (233,749) (5,443) (12,938) Mexico Real Estate Management SA de CV (Reit) (25,387) (160) (49,900) Minera Frisco SAB de CV 'A1' (96,982) (926) 38,000 Wal-Mart de Mexico SAB de CV 96,424 (588) 818,287 14,060 Netherlands 13 ASML Holding NV 1, Gemalto NV 542 (27) 9 Heineken Holding NV Heineken NV Koninklijke Philips NV 599 (16) 62 Unilever NV 2, , Norway 242 Norsk Hydro ASA 1,313 (33) 47 Telenor ASA 1,114 (15) 20 Yara International ASA 916 (12) 3,343 (60) Philippines (162,800) Aboitiz Equity Ventures Inc (201,663) 10,304 (18,000) DMCI Holdings Inc (29,311) ,890 Metropolitan Bank & Trust Co 45,591 (1,657) 2,100 Philippine Long Distance Telephone Co 135,344 (4,807) 49,710 Universal Robina Corp 169,279 (7,605) 119,240 (3,369) Poland (5,139) Alior Bank SA (139,061) (9,397) 1,378 Bank Pekao Sa 85,071 2, Bank Zachodni WBK SA 30,053 1,012 7,740 Enea SA 41, (1,653) Eurocash SA (23,499) (2,213) (1,950) Grupa Azoty SA (51,009) (4,357) (784) Jastrzebska Spolka Weglowa SA (12,190) (773) (939) Orange Polska SA (3,192) (52) 58,323 PGE SA 403,048 6,389 Poland continued (1,772) Polski Koncern Naftowy Orlen S.A. (24,818) Powszechny Zaklad Ubezpieczen SA 84,296 3,227 20,244 Tauron Polska Energia SA 35, ,305 (1,732) Portugal 49 Jeronimo Martins SGPS SA 836 (45) 836 (45) Russia 11 AK Transneft OAO (Pref) 25,096 2,235 93,282 Gazprom OAO 381,836 4,343 4,023 Lukoil OAO 228,771 9, MMC Norilsk Nickel OJSC 83,591 11,395 7,969 Moscow Exchange Micex Rts - Rights 14,898 1,590 9,195 Rosneft OAO 60,215 (21) 5,959 Rostelecom 14,368 (513) 827,920 Rushydro JSC 16,367 (5,300) 90,865 Sberbank of Russia 222,320 12,434 1,559 Severstal 13,333 (88) 110,492 Surgutneftegas OAO 81,956 1,147 11,140 Tatneft 66,448 1,703 10,079 Uralkali OJSC 45,208 (465) 39,730,660 VTB Bank OJSC 54,663 15,136 1,309,070 52,703 Singapore 1,000 CapitaLand Ltd 2,544 (12) 1,000 Golden Agri-Resources Ltd 459 (27) 1,000 Noble Group Ltd 1, , South Africa (330) Anglo American Platinum Ltd (14,158) 460 (2,443) Anglo American Plc (60,318) 5, AngloGold Ashanti Ltd 3,518 (288) (2,934) Aspen Pharmacare Holdings Ltd (76,742) 921 (72) Assore Ltd (2,306) 489 4,347 BHP Billiton Plc 136,580 (7,542) 10,885 Bidvest Group Ltd 302,313 (4,507) 5,955 British American Tobacco Plc 359,335 11,791 2,295 Clicks Group Ltd 13,807 (592) (5,020) Discovery Ltd (43,384) 1,254 (7,507) Exxaro Resources Ltd (98,981) 4, ,837 FirstRand Ltd 573,562 (281) (2,991) Foschini Group Ltd/The (32,022) (47) 5,555 Gold Fields Ltd 19,654 (2,429) 28,995 Growthpoint Properties Ltd 65,147 (3,202) 845 Harmony Gold Mining Co Ltd 2,267 (425) (14,779) Impala Platinum Holdings Ltd (156,221) 12,600 (4,762) Imperial Holdings Ltd (91,247) Kumba Iron Ore Ltd 7,370 (685) (14,262) Massmart Holdings Ltd (185,721) 11,390 8,126 Mr Price Group Ltd 132, ,988 MTN Group Ltd 232,161 (2,742) 42,315 Murray & Roberts Holdings Ltd 102,455 (3,042) (30,912) Nampak Ltd (107,697) 6,510 3,115 Naspers Ltd 'N' 349,650 2,208 75,567 Netcare Ltd 205,175 18,221 (2,346) Northam Platinum Ltd (9,559) ,407 Old Mutual Plc 147,320 (2,011) (34,774) Remgro Ltd (731,562) (5,671) (5,044) RMB Holdings Ltd (24,899) (73) The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 67

70 BlackRock Emerging Markets Allocation Fund continued Contracts For Difference as at 31 May 2014 Holding Commitment Holding Commitment South Africa continued 13,352 Sanlam Ltd 75, (19,738) Sappi Ltd (69,253) 2,297 4,354 Sasol Ltd 247,939 (2,243) 20,854 SPAR Group Ltd/The 249,103 (2,407) 41,703 Steinhoff International Holdings Ltd 213,531 (4,031) 29,684 Vodacom Group Ltd 368,227 (1,435) 2,102,792 37,250 South Korea (455) Advanced Process Systems Corp (3,858) (58) 88 Amorepacific Corp 124, AMOREPACIFIC Group 125,070 15, BS Financial Group Inc 10,822 (413) 120 BS Financial Group Inc Cell Biotech Co Ltd 28,151 3, Cheil Worldwide Inc 15,235 (424) 810 CJ CGV Co Ltd 36,760 (236) (44) CJ CheilJedang Corp (14,232) (213) (1,058) CJ Korea Express Co Ltd (117,705) (2,198) 864 Coway Co Ltd 72,663 2,601 (1,202) Daelim Industrial Co Ltd (94,963) 2,899 2,240 Daesang Corp 103,854 11,731 (37,650) Daewoo Engineering & Construction Co Ltd (308,153) 12,327 (3,300) Daewoo Securities Co Ltd (28,109) (470) (2,890) Doosan Heavy Industries & Construction Co Ltd (95,040) 1,472 3,680 Eugene Technology Co Ltd 79,898 4,368 2,563 Green Cross Corp/South Korea 309,007 (14,613) (1,340) GS Engineering & Construction Corp (43,541) 5,520 (432) GS Engineering + Construction - Rights- (4,023) (4,022) 490 Hana Financial Group Inc 17,795 (265) (750) Hanjin Heavy Industries & Construction Co Ltd (8,270) 572 1,375 Hanmi Pharm Co Ltd 140,169 (13,312) (840) Hansol Technics Co Ltd (17,579) (2,014) 221 Hanssem Co Ltd 19,193 (94) 18,810 Hanwha Life Insurance Co Ltd 119,475 (2,959) 1,470 Harim Co Ltd 9, (3,090) Hite Jinro Co Ltd (65,422) 6, Hyosung Corp 10,042 (327) 1,610 Hyundai Engineering & Construction Co Ltd 84,272 (2,179) (713) Hyundai Heavy Industries Co Ltd (129,293) 2,724 (2,850) Hyundai Merchant Marine Co Ltd (26,567) 1,343 (4,233) Hyundai Mipo Dockyard (670,094) (36,547) 304 Hyundai Mobis 85,818 (3,936) 352 Hyundai Motor Co 77,459 (4,687) 1,566 Hyundai Steel Co 105, i-sens Inc 12,122 (1,001) (50) Iljin Materials Co Ltd (505) 9 19,460 Industrial Bank of Korea 267,046 10,947 (8,170) Interpark Corp (91,694) (1,678) 920 Jahwa Electronics Co Ltd 13,301 (1,859) 1,050 JoyCity Corp 20,790 (2,026) 844 KCC Corp 484,791 23,427 2,160 KGMobilians Co Ltd 32,923 (2,647) 8,187 Kia Motors Corp 471,864 (488) 146 KJB Financial Group Co Ltd 1,631 1, KJB Financial Group Co Ltd 3,038 3,038 (3,060) Kolao Holdings (75,735) Kolon Industries Inc 7, ,440 Korea Aerospace Industries Ltd 76,295 (1,451) South Korea continued 1,820 Korea Electric Power Corp 69,753 (3,856) 150 Korea Investment Holdings Co Ltd 5,690 (45) (480) Korea Kolmar Co Ltd (19,008) (2,440) 1,520 Korea Line Corp 37,844 (3,500) 378 Korea Zinc Co Ltd 137,647 8,440 11,163 Korean Reinsurance Co 109, ,130 KT Skylife Co Ltd 182,889 3, KT&G Corp 52,638 (1,076) 9,310 LF Corp 249,131 4, LG Chem Ltd 132,013 1,285 4,267 LG Corp 253,879 9,242 1,730 LG Display Co Ltd 46,040 (831) (23,520) Lock & Lock Co Ltd (303,164) 19,043 1,091 Lotte Himart Co Ltd 72,077 (5,527) (217) Lotte Shopping Co Ltd (63,386) 1, LS Corp 34,604 (2,716) 4,780 Lumens Co Ltd 55,287 (7,158) 1,236 Maeil Dairy Industry Co Ltd 40,162 (5,437) 130 Mirae Asset Securities Co Ltd 5,422 (144) 221 NAVER Corp 164,201 (3) (5,450) Nexen Tire Corp (81,467) (5,477) 292 NongShim Co Ltd 88,871 1, OCI Co Ltd 22, (110) Orion Corp/Republic of Korea (90,463) 3, POSCO 146,171 (9,476) 1,345 S-1 Corp 104,810 (36) 356 S-Oil Corp 19,227 (1,148) 985 Samsung C&T Corp 70,481 3,127 (2,634) Samsung Electro-Mechanics Co Ltd (162,398) 8, Samsung Electronics Co Ltd 1,407,356 37,077 (4,862) Samsung Engineering Co Ltd (388,407) (3,977) (6,523) Samsung Fine Chemicals Co Ltd (248,721) 7, Samsung Fire & Marine Insurance Co Ltd 3,568 (108) (5,500) Samsung Heavy Industries Co Ltd (151,759) 2,419 (2,212) Samsung SDI Co Ltd (328,483) 1,506 (150) Samsung Securities Co Ltd (6,036) (94) 997 Seowon Intech Co Ltd 13,682 (287) 310 Shinhan Financial Group Co Ltd 13,476 (1,023) (171) Shinsegae Co Ltd (35,031) 1, Silicon Works Co Ltd 13, ,407 SK C&C Co Ltd 228,248 14,337 4,270 SK Chemicals Co Ltd 252,383 14, SK Holdings Co Ltd 62,945 (1,328) 49,000 SK Networks Co Ltd 455,323 (2,082) 2,861 SundayToz Corp 36,457 (1,039) 1,929 Woori Finance Holdings Co Ltd 22,690 (3,436) 61 Yuhan Corp 10, ,915,555 95,012 Spain 224 Banco Bilbao Vizcaya Argentaria SA 2, Banco Santander SA 3, Gas Natural SDG SA 1, Mapfre SA 1,032 (46) 166 Telefonica SA 2, , Sweden 21 Atlas Copco AB 617 (14) 44 Sandvik AB Telefonaktiebolaget LM Ericsson 'B' 1,338 (3) 57 Volvo AB 'B' 832 (49) 3,416 (64) 68 BlackRock Strategic Funds (BSF)

71 BlackRock Emerging Markets Allocation Fund continued Contracts For Difference as at 31 May 2014 Holding Commitment Holding Commitment Switzerland 74 ABB Ltd 1, Cie Financiere Richemont SA 1, Holcim Ltd 1, Nestle SA Reg 6,261 (94) 64 Novartis AG Reg 5, Roche Holding AG 6,494 (43) 2 Swatch Group AG/The 1,177 (16) 4 Syngenta AG Reg 1,541 (13) 20 Transocean Ltd ,722 (42) Taiwan (5,000) A-DATA Technology Co Ltd (12,840) (1,033) 15,000 AcBel Polytech Inc 19, (332,000) Acer Inc (215,904) (2,293) 220,000 Asia Cement Corp 286,505 (3,161) 64,000 AU Optronics Corp 24, ,000 Career Technology MFG. Co Ltd 34, ,000 Cathay Financial Holding Co Ltd 122,459 3,683 2,000 Cheng Uei Precision Industry Co Ltd 3,829 (9) 113,000 Chimei Materials Technology Corp 136, ,000 Chin-Poon Industrial Co Ltd 83, (93,000) China Airlines Ltd (31,480) ,000 China Metal Products 180,287 (6,387) 8,000 China Steel Chemical Corp 48,557 1,620 (339,000) China Steel Corp (278,114) 5,323 (37,000) Chipbond Technology Corp (66,015) (3,849) 5,000 Chlitina Holding Ltd 40,853 3,725 (43,000) Chong Hong Construction Co (120,888) (1,589) 121,000 Compal Electronics Inc 99,672 7, ,000 Compeq Manufacturing Co Ltd 520,251 18,189 93,000 Delta Electronics Inc 604,792 23,422 (97,000) E Ink Holdings (60,816) 156 (12,000) Eclat Textile Co Ltd (124,060) (383) 54,000 Elan Microelectronics Corp 103,010 7,793 19,000 Elite Advanced Laser Corp 85,858 6,613 (75,000) Epistar Corp (170,082) (629) (171,391) Evergreen Marine Corp Taiwan Ltd (98,312) ,000 Everlight Electronics Co Ltd 92,085 3, ,000 Far Eastern Department Stores Ltd 195,044 3,297 (176,000) Far EasTone Telecommunications Co Ltd (399,713) (25,582) (79,000) FLEXium Interconnect Inc (208,924) (7,442) 1,000 Formosa International Hotels Corp 11, ,000 Formosa Petrochemical Corp 7,334 (133) 6,000 Formosa Plastics Corp 15, ,000 Formosa Taffeta Co Ltd 175,818 10, ,000 Fubon Financial Holding Co Ltd 279,172 10,105 (41,000) Genius Electronic Optical Co Ltd (125,384) (2,324) 9,000 Giant Manufacturing Co Ltd 71,284 1,194 (3,000) Gigasolar Materials Corp (73,335) (3,218) (90,000) Gigastorage Corp (111,504) (3,817) 13,000 Grape King Bio Ltd 57, ,000 Green Seal Holding Ltd 22,861 2,017 (1,000) Hermes Microvision Inc (40,019) 1,106 64,000 Hon Hai Precision Industry Co Ltd 197,215 9,297 (27,000) Hotai Motor Co Ltd (315,152) 5,174 (21,000) HTC Corp (112,054) 1,122 25,000 Innolux Corp 9, ,000 Inotera Memories Inc 49,799 11, ,000 Inventec Corp 255,857 10,158 6,000 King Slide Works Co Ltd 82,040 1, ,000 King Yuan Electronics Co Ltd 116,190 2,823 4,000 Largan Precision Co Ltd 261,460 5,523 (6,000) LCY Chemical Corp (5,473) 95 (6,000) Medigen Biotechnology Corp (83,440) 136 Taiwan continued 38,000 Micro-Star International Co Ltd 56,521 3,602 22,000 Namchow Chemical Industrial Co Ltd 44,755 2, ,000 Nan Ya Plastics Corp 242,757 7,613 (60,000) Neo Solar Power Corp (74,636) (1,464) 26,000 Novatek Microelectronics Corp 133,098 8,559 (55,000) Orise Technology Co Ltd (95,196) 1,481 (3,000) Parade Technologies Ltd (34,467) (8,618) 7,000 PChome Online Inc 54, ,000 Pegatron Corp 176,018 12,317 12,000 President Chain Store Corp 99,248 9, ,000 Primax Electronics Ltd 152,074 4,714 87,000 Quanta Computer Inc 234,143 4, ,000 Realtek Semiconductor Corp 422,621 19,145 (30,000) Ruentex Development Co Ltd (55,027) (1,995) (2,000) ScinoPharm Taiwan Ltd (4,789) (30) 18,000 Sercomm Corp 40,099 4, ,000 Siliconware Precision Industries Co 413,000 13,700 24,000 Soft-World International Corp 94, (932) Solartech Energy Corp (782) (90) (33,000) Standard Foods Corp (90,904) ,000 Taiflex Scientific Co Ltd 68,146 (4,979) 122,000 Taiwan Cement Corp 181,461 (1,830) (100,000) Taiwan Glass Industry Corp (89,210) 1,592 (175,000) Taiwan Mobile Co Ltd (577,196) (14,215) 5,000 Taiwan Paiho Ltd 7, ,000 Taiwan Semiconductor Manufacturing Co Ltd 585,833 (8,701) 138,000 Taiwan Styrene Monomer 82,380 2, ,000 Taiwan Union Technology Corp 117,108 1, ,000 Teco Electric and Machinery Co Ltd 264,448 (1,091) (2,000) Tong Hsing Electronic Industries Ltd (10,572) (519) 20,000 TXC Corp 29,614 (268) 143,000 Uni-President Enterprises Corp 250,371 5, ,000 Vanguard International Semiconductor Corp 280,686 11, ,000 Winbond Electronics Corp 176,785 14,642 (27,000) Wintek Corp (9,590) (418) (41,000) Wistron Corp (34,867) (1,374) 171,000 Wistron NeWeb Corp 409,458 24,112 (479,000) Yang Ming Marine Transport Corp (202,875) (5,886) 106,000 Yuanta Financial Holding Co Ltd 55,323 1,712 (51,000) Yulon Motor Co Ltd (82,575) (3,985) 4,949, ,217 Thailand 19,400 Advanced Info Service PCL 135,321 (6,935) 3,200 Airports of Thailand PCL 18,276 (688) 52,900 BEC World PCL 78,955 (5,807) 17,100 Central Pattana PCL 24,481 1,023 (319,400) CP ALL PCL (442,665) (21,436) 45,300 Delta Electronics Thailand PCL 78,651 7,433 2,500 Glow Energy PCL 6, (35,314) Home Product Center PCL (10,111) (1,026) (6,300) Indorama Ventures PCL (4,797) ,700 Intouch Holdings PCL 46,816 (10,583) 382,700 Jasmine International PCL 92,090 (1,790) 50,900 PTT Exploration & Production PCL 237,988 (3,692) 283,400 PTT Global Chemical PCL 593,474 (3,012) 15,800 PTT PCL 141,493 (3,600) 130,100 Quality Houses PCL 13, ,800 Shin Corp PCL 8,594 (289) 14,500 Siam Cement PCL/The 183,734 (2,144) 111,600 TTW PCL 35,353 1,122 1,237,120 (50,303) The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 69

72 BlackRock Emerging Markets Allocation Fund continued Contracts For Difference as at 31 May 2014 Holding Commitment Holding Commitment Turkey (12,338) Anadolu Efes Biracilik Ve Malt Sanayii AS (153,673) 253 1,389 BIM Birlesik Magazalar AS 30,590 (1,648) 98,759 Emlak Konut Gayrimenkul Yatirim Ortakligi AS 127,249 (2,985) 162,384 Enka Insaat ve Sanayi AS 452,552 30,063 99,289 Eregli Demir ve Celik Fabrikalari TAS 148,306 (538) 363 Goodyear Lastikleri TAS 11, ,584 Haci Omer Sabanci Holding AS 51,266 3, ,139 Kardemir Karabuk Demir Celik Sanayi ve Ticaret AS 240,139 12, Konya Cimento Sanayii AS 30, ,179 Koza Altin Isletmeleri AS 31, ,562 Koza Anadolu Metal Madencilik Isletmeleri AS 25,415 (121) 10,871 TAV Havalimanlari Holding AS 86, ,391 Tofas Turk Otomobil Fabrikasi AS 33, ,714 Turk Hava Yollari 39, ,938 Turk Telekomunikasyon AS 5,586 (96) (19,598) Turkcell Iletisim Hizmetleri AS (121,581) (5,914) 45,056 Turkiye Is Bankasi 'C' 129,223 15,467 40,162 Turkiye Sise ve Cam Fabrikalari AS 55,198 4,098 4,568 Ulker Biskuvi Sanayi AS 38,366 2,652 1,261,121 61,421 United Kingdom 62 Anglo American Plc 1,531 (140) 72 Antofagasta Plc 954 (14) 29 AstraZeneca Plc 2, Barclays Plc 2, BG Group Plc 2, BHP Billiton Plc 5,565 (174) 51 British American Tobacco Plc 3, Burberry Group Plc Compass Group Plc GKN Plc GlaxoSmithKline Plc 3,248 (110) 448 Glencore Plc 2,427 (23) 443 HSBC Holdings Plc 4, Johnson Matthey Plc 598 (3) (5,993) Larsen & Toubro Ltd GDR (157,196) (17,320) 2,050 Magnit OJSC GDR 120,438 12, MegaFon OAO GDR 20,520 1, NOVATEK OAO GDR 83,898 1, Old Mutual Plc Reckitt Benckiser Group Plc 1, Rio Tinto Plc 3,143 (218) 153 Royal Dutch Shell Plc 'B' 6,229 (345) 46 SABMiller Plc 2, Sistema JSFC GDR 26,959 4, Smith & Nephew Plc Standard Chartered Plc 1, Tullow Oil Plc 819 (21) 84 Unilever Plc 3,775 (7) 655 Vodafone Group Plc 2,298 (84) 64 WPP Plc 1, ,860 2,519 United States 21 3M Co 2, Accenture Plc 'A' 1, Adobe Systems Inc 1, Affiliated Managers Group Inc Agilent Technologies Inc United States continued 7 Alexion Pharmaceuticals Inc 1, Allergan Inc/United States 1,580 (9) 13 Amazon.com Inc 4, Ambev SA ADR 3,356 (98) 35 American International Group Inc 1, American Tower Corp (Reit) 1, AMETEK Inc Amgen Inc 2, Amphenol Corp 'A' 1, Analog Devices Inc 1, Apache Corp 1, Apple Inc 15,931 1, Archer-Daniels-Midland Co ,482 AU Optronics Corp ADR 5, Autodesk Inc Avago Technologies Ltd Baker Hughes Inc 1, ,689 Banco Santander Chile ADR 119,054 1, Baxter International Inc 1,560 (6) 15 Becton Dickinson and Co 1, Boeing Co/The 2, BorgWarner Inc (497) Braskem SA ADR (6,526) Bristol-Myers Squibb Co 1, Broadcom Corp 'A' Brown-Forman Corp 'B' 1, Bunge Ltd 1, Cameron International Corp 700 (11) 25 Caterpillar Inc 2,557 (68) 1,831 Cemex SAB de CV ADR 23,821 1, Chevron Corp 6,726 (84) (92) China Mobile Ltd ADR (4,519) (102) 8,427 Cia Brasileira de Distribuicao ADR 383,681 (10,028) 8,459 Cia de Minas Buenaventura SAA ADR 88,312 (4,145) 20,341 Cia Energetica de Minas Gerais ADR 144,218 (5,793) (26,560) Cia Siderurgica Nacional SA ADR (102,787) 11, Cisco Systems Inc 2, Citigroup Inc 3, Citrix Systems Inc (561) CNOOC Ltd ADR (97,053) (1,694) 84 Coca-Cola Co/The 3, (923) Coca-Cola Femsa SAB de CV ADR (107,779) 1, Colgate-Palmolive Co 1, ,559 Copa Holdings SA 'A' 508,474 17, Costco Wholesale Corp 1, Crown Castle International Corp (Reit) Cummins Inc 1, Danaher Corp 1, DaVita HealthCare Partners Inc Deere & Co 1,819 (6) 10 Delphi Automotive Plc Discovery Communications Inc 'A' 1, Dow Chemical Co/The 1, Dun & Bradstreet Corp/The Eastman Chemical Co 1, ebay Inc 1,957 (46) 14 Ecolab Inc 1, EMC Corp/MA Emerson Electric Co 1,596 (3) 13 Ensco Plc 'A' Essex Property Trust Inc (Reit) 1, Estee Lauder Cos Inc/The 'A' 1, Exxon Mobil Corp 12,061 (32) 7 F5 Networks Inc BlackRock Strategic Funds (BSF)

73 BlackRock Emerging Markets Allocation Fund continued Contracts For Difference as at 31 May 2014 Holding Commitment Holding Commitment United States continued United States continued 69 Facebook Inc 'A' 4, FedEx Corp 1, FEI Co (9,617) Fibria Celulose SA ADR (89,342) 6,155 5 FleetCor Technologies Inc Flowserve Corp 958 (6) 13 FMC Corp FMC Technologies Inc Franklin Resources Inc 1, Garmin Ltd General Electric Co 4, General Mills Inc General Motors Co 1,097 (3) 1,966 Gerdau SA ADR 11,875 (272) (1,350) Gol Linhas Aereas Inteligentes SA ADR (8,424) Goldman Sachs Group Inc/The 3, Google Inc 'A' 10, Grupo Aeroportuario del Pacifico SAB de CV ADR 34, Halliburton Co 1, Henry Schein Inc Hewlett-Packard Co 1, Home Depot Inc/The 2, Honeywell International Inc 2, IHS Inc 'A' Ingersoll-Rand Plc Intel Corp 2, IntercontinentalExchange Group Inc 1, International Business Machines Corp 5,682 (99) 2 Intuitive Surgical Inc ,558 ishares MSCI Frontier 100 ETF 526,728 10, Johnson & Johnson 7, Johnson Controls Inc Kansas City Southern 1, Kellogg Co 1, Kimberly-Clark Corp 1, KLA-Tencor Corp 1, Lam Research Corp Las Vegas Sands Corp 1, (11,456) Latam Airlines Group SA ADR (166,341) Linear Technology Corp LinkedIn Corp 'A' Littelfuse Inc LyondellBasell Industries NV Manpowergroup Inc MasterCard Inc 'A' 2, McDonald's Corp 605 (10) 10 McGraw-Hill Financial Inc Mead Johnson Nutrition Co 1, Merck & Co Inc 3, Microsoft Corp 8, ,072 Mobile Telesystems OJSC ADR 75,576 4, Mondelez International Inc 'A' Monsanto Co 2, Moody's Corp Mosaic Co/The Motorola Solutions Inc 1, Murphy Oil Corp National Oilwell Varco Inc 1, NetApp Inc Netflix Inc Newmont Mining Corp 593 (39) 22 NIKE Inc 'B' 1, Noble Energy Inc 1, Northern Trust Corp NXP Semiconductor NV Occidental Petroleum Corp 2, Omnicom Group Inc 1, Oracle Corp 4,439 (5) 8 Palo Alto Networks Inc Parker Hannifin Corp 1, PepsiCo Inc 3, ,873 Petroleo Brasileiro SA ADR 211,563 (10,918) 108 Pfizer Inc 3, Philip Morris International Inc 4, Philippine Long Distance Telephone Co 340 (14,681) 2,924 Philippine Long Distance Telephone Co ADR 191,259 (1,784) 7 PPG Industries Inc 1, Praxair Inc 1, Procter & Gamble Co/The 5,550 (7) 58 QUALCOMM Inc 4, Raytheon Co 1, Rockwell Automation Inc 1, Roper Industries Inc 1, Royal Caribbean Cruises Ltd Royal Gold Inc 741 (30) 13 SanDisk Corp 1, ,472 Sasol Ltd ADR 482,989 3, Schlumberger Ltd 3, Sigma-Aldrich Corp 1, ,590 Siliconware Precision Industries Co ADR 161,837 10,893 (6,001) Sociedad Quimica y Minera de Chile SA ADR (185,551) (16,793) 1,292 Southern Copper Corp 38,127 (647) 6 SPX Corp Starwood Hotels & Resorts Worldwide Inc Stryker Corp 1, TE Connectivity Ltd 1, ,343 Telekomunikasi Indonesia Persero Tbk PT ADR 147,226 7, Texas Instruments Inc 1, Thermo Fisher Scientific Inc 1, Transocean Ltd 1, TripAdvisor Inc (15,660) Turkcell Iletisim Hizmetleri AS ADR (241,947) (13,781) 13 Tyson Foods Inc 'A' United Technologies Corp 3, ,469 Vale SA ADR 109,178 (10,984) 11 VF Corp Visa Inc 'A' 4, VMware Inc 'A' 1, Wal-Mart Stores Inc 5,643 (42) 11 Western Digital Corp Whirlpool Corp 862 (2) 5 Wynn Resorts Ltd 1, Xilinx Inc Yahoo! Inc Yum! Brands Inc 1, ,553,439 (6,435) Total market value ( underlying exposure 70,827,602) 30,280, ,361 Note: The net unrealised appreciation attributed to these transactions is included in the Statement of Net Assets (see Note 2(d)). Deutsche Bank and Merrill Lynch are the counterparties to these Contracts for Difference. The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 71

74 BlackRock Emerging Markets Allocation Fund continued Open Exchange Traded Futures Contracts as at 31 May 2014 Number of Contracts Contract/ Expiration date Underlying exposure 135 SGX CNX NIFTY Index June ,951,020 (30,484) Total 1,951,020 (30,484) Note: The net unrealised depreciation of attributed to these transactions is included in the Statement of Net Assets (see Notes 2(d)). Sector Breakdown as at 31 May 2014 % of Net Assets* Government Financial Energy 6.15 Basic Materials 1.42 Utilities 1.22 Industrial 1.02 Communications 0.46 Diversified 0.41 Other Net Assets * Based on the market value of the Portfolio of Investments except for Contract For Difference, which are based on the commitment (where applicable). 72 BlackRock Strategic Funds (BSF)

75 BlackRock Emerging Markets Flexi Dynamic Bond Fund Portfolio of Investments as at 31 May 2014 Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding Market % of Net Assets Holding Market % of Net Assets BONDS Argentina 1,600,000 Provincia de Buenos Aires/ Argentina 9.625% 18/4/2028 1,357, ,000,000 YPF SA 8.75% 4/4/2024 3,118, ,476, BRL 741,000 BRL 31,000,000 BRL 17,830,000 BRL 3,000,000 BRL 7,000,000 3,300,000 Brazil Brazil Notas do Tesouro Nacional Serie B 6.00% 15/5/2045 7,996, Brazil Notas do Tesouro Nacional Serie F 10.00% 1/1/ ,865, Brazil Notas do Tesouro Nacional Serie F 10.00% 1/1/2021 7,588, Brazil Notas do Tesouro Nacional Serie F 10.00% 1/1/2023 1,252, Brazil Notas do Tesouro Nacional Serie F 10.00% 1/1/2025 2,869, ,572, Cayman Islands Saudi Electricity Global Sukuk Co % 8/4/2024 3,400, ,400, Indonesia 2,500,000 Indonesia Government International Bond 5.25% 17/1/2042 2,457, IDR 81,400,000,000 Indonesia Treasury Bond 5.625% 15/5/2023 5,922, ,300,000 Perusahaan Gas Negara Persero Tbk PT 5.125% 16/5/2024 1,309, ,690, Mexico MXN 100,000,000 Mexican Bonos 8.00% 17/12/2015 8,267, ,077,000 Petroleos Mexicanos 6.375% 23/1/2045 7,014, ,282, ,498,000 6,150,000 PLN 20,000,000 PLN 22,000,000 Netherlands Petrobras Global Finance BV 6.25% 17/3/2024 1,602, ,602, Nigeria Nigeria Government International Bond 6.375% 12/7/2023 6,695, ,695, Poland Poland Government Bond 25/7/2015 (Zero Coupon) 6,394, Poland Government Bond 4.00% 25/10/2023 7,419, ,813, ,180,000 6,400,000 Romania Romanian Government International Bond 6.125% 22/1/2044 7,060, ,060, Slovenia Slovenia Government International Bond 5.25% 18/2/2024 6,869, ,869, United Arab Emirates 3,700,000 DP World Ltd 6.85% 2/7/2037 4,181, ,181, UYU 118,242,345 Uruguay Uruguay Government International Bond 5.00% 14/9/2018 5,486, ,486, Venezuela 3,750,000 Petroleos de Venezuela SA 12.75% 17/2/2022 3,642, ,550,000 Petroleos de Venezuela SA 9.75% 17/5/2035 3,479, ,780,000 Venezuela Government International Bond 11.75% 21/10/2026 3,505, ,628, Total Bonds 122,758, Total Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market 122,758, Other Transferable Securities and Money Market Instruments BONDS Dominican Republic 4,000,000 Dominican Republic International Bond 7.45% 30/4/2044 4,307, ,307, Total Bonds 4,307, Total Other Transferable Securities and Money Market Instruments 4,307, Securities portfolio at market value 127,065, Other Net Assets 20,934, Total Net Assets () 147,999, The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 73

76 BlackRock Emerging Markets Flexi Dynamic Bond Fund continued Swaps as at 31 May ,000,000 Credit Default Swaps (Citibank) (Fund receives default protection on Markit CDX.EM.20 and pays Fixed 5.000%) (20/12/2018) (830,942) 23,000,000 Credit Default Swaps (Citibank) (Fund receives default protection on Markit CDX.EM.21 and pays Fixed 5.000%) (20/6/2019) (866,050) 10,000,000 Credit Default Swaps (Citibank) (Fund receives default protection on Russian Foreign Bond - Eurobond 7.500% (Step-up Coupon) 31/3/2030 and pays Fixed 1.000%) (20/6/2019) (267,405) 6,500,000 Credit Default Swaps (Citibank) (Fund receives default protection on Sberbank of Russia ADR and pays Fixed 1.000%) (20/6/2019) (159,881) 5,000,000 Credit Default Swaps (Goldman Sachs) (Fund receives default protection on Markit CDX.EM.21 and pays Fixed 5.000%) (20/6/2019) (101,771) MXN 80,000,000 Interest Rate Swap (Bank of America) (Fund receives Fixed 6.335% and pays Floating MXN 1 Month TIIE) (1/5/2024) (17,095) MXN 271,000,000 Interest Rate Swap (Bank of America) (Fund receives Floating MXN 1 Month TIIE and pays Fixed 4.235%) (11/5/2016) 6,737 ZAR 435,000,000 Interest Rate Swap (Deutsche Bank) (Fund receives Fixed 6.600% and pays Floating ZAR 3 Month JIBAR) (15/5/2016) (54,120) ZAR 100,000,000 Interest Rate Swap (Deutsche Bank) (Fund receives Floating ZAR 3 Month JIBAR and pays Fixed 7.970%) (15/5/2024) 174,882 HUF 1,290,000,000 Interest Rate Swap (Goldman Sachs) (Fund receives Fixed 4.575% and pays Floating HUF 6 Month BUBOR) (15/5/2024) 134,425 HUF 2,310,000,000 Interest Rate Swap (Goldman Sachs) (Fund receives Floating HUF 6 Month BUBOR and pays Fixed 3.700%) (15/5/2019) (142,360) HUF 1,550,000,000 Interest Rate Swap (JP Morgan Chase Bank (Depository Cle)) (Fund receives Fixed 5.280% and pays Floating HUF 6 Month BUBOR) (6/1/2024) 557,024 HUF 2,800,000,000 Interest Rate Swap (JP Morgan Chase Bank (Depository Cle)) (Fund receives Floating HUF 6 Month BUBOR and pays Fixed 4.140%) (6/1/2019) (446,131) PLN 9,600,000 Interest Rate Swap (JP Morgan) (Fund receives Fixed 4.170% and pays Floating PLN 6 Month WIBOR) (27/12/2023) 140,739 MXN 98,300,000 Interest Rate Swap (JP Morgan) (Fund receives Fixed 6.850% and pays Floating MXN 1 Month TIIE) (10/1/2024) 339,968 MXN 373,200,000 Interest Rate Swap (JP Morgan) (Fund receives Floating MXN 1 Month TIIE and pays Fixed 4.380%) (20/1/2016) (145,569) PLN 81,500,000 Interest Rate Swap (JP Morgan) (Fund receives Floating PLN 6 Month WIBOR and pays Fixed 2.970%) (27/12/2015) (98,869) ( underlying exposure 255,203,748) (1,776,418) Open Exchange Traded Futures Contracts as at 31 May 2014 Number of Contracts Contract/ Expiration date Underlying exposure 100 German Euro Schatz September ,272,901 (1,362) Total 15,272,901 (1,362) Note: The net unrealised depreciation of attributed to these transactions is included in the Statement of Net Assets (see Notes 2(d)). Sector Breakdown as at 31 May 2014 % of Net Assets* Government Energy Utilities 3.19 Consumer, Non-cyclical 2.83 Other Net Assets * Based on the market value of the Portfolio of Investments except for Contract For Difference, which are based on the commitment (where applicable). Note: The total market value of (4,378,934) is included in the Statement of Net Assets. (see note 2(d)). 74 BlackRock Strategic Funds (BSF)

77 BlackRock Emerging Markets Flexi Dynamic Bond Fund continued Open Forward Foreign Exchange Transactions as at 31 May 2014 Purchases Sales date 2,401,874 3,296,627 13/6/2014 (25,232) 17,248 12,557 13/6/ ARS 20,000,000 2,398,082 16/6/ ,500 BRL 11,892,100 5,265,719 27/6/2014 (1,771) COP 48,620,608,500 25,312,530 27/6/ ,190 CZK 86,414,460 4,310,754 27/6/2014 (27,703) HUF 1,095,439,440 4,910,017 27/6/ ,507 IDR 27,893,720,460 2,420,279 27/6/2014 (44,931) INR 155,131,550 2,561,617 27/6/ ,459 INR 282,903,710 4,793,353 27/6/2014 (24,402) JPY 1,242,203,420 12,239,844 27/6/2014 (36,221) JPY 86,713, ,811 27/6/2014 (6,918) KRW 7,001,550,330 6,822,793 27/6/ ,162 KRW 2,720,831,220 2,644,922 27/6/ ,610 MXN 74,639,970 5,763,853 27/6/ ,691 MYR 13,323,760 4,093,321 27/6/ ,264 MYR 19,532,290 6,065,929 27/6/2014 1,133 PEN 3,832,240 1,360,156 27/6/ ,528 PHP 138,443,630 3,123,658 27/6/ ,998 PHP 352,396,490 8,045,582 27/6/2014 2,144 PLN 10,175,750 3,321,121 27/6/ ,311 PLN 28,400,480 9,273,626 27/6/ ,881 RON 41,123,270 12,676,326 27/6/ ,459 TRY 7,781,690 3,666,608 27/6/ ,910 TRY 7,785,000 3,672,433 27/6/ ,655 7,101,809 BRL 15,863,310 27/6/ ,035 8,720,606 BRL 19,560,320 27/6/ ,379 25,993,559 BRL 58,633,670 27/6/ , ,394 CHF 98,610 27/6/ ,713,399 CHF 2,370,520 27/6/ ,272 2,592,819 CLP 1,437,199,420 27/6/2014 (7,534) 5,842,100 CLP 3,319,714,890 27/6/2014 (164,325) 15,854,935 COP 30,666,599,700 27/6/2014 (231,721) 2,310,662 CZK 45,486,770 27/6/ , , ,140 27/6/2014 5,858 2,037,430 1,463,240 27/6/ ,540 5,887,160 HUF 1,298,604,360 27/6/ ,869 10,838,207 IDR 126,371,322,180 27/6/ ,789 1,858,725 MXN 24,097,979 27/6/2014 (11,111) 8,322,770 MXN 108,512,670 27/6/2014 (97,061) 1,661,411 PEN 4,649,460 27/6/2014 (14,915) 1,617,742 PLN 4,948,126 27/6/2014 (8,057) 22,326,872 PLN 67,324,450 27/6/ ,168 1,630,652 RON 5,211,930 27/6/ ,585 1,702,264 RUB 59,170,700 27/6/ ,757 8,667,081 RUB 311,568,570 27/6/2014 (229,169) 3,986,210 THB 129,815,720 27/6/ ,266 3,895,258 THB 126,606,390 27/6/ ,964 6,134,134 TRY 13,054,050 27/6/2014 (58,514) 7,332,104 TRY 15,566,790 27/6/2014 (52,550) 3,935,436 ZAR 41,190,240 27/6/ ,428 9,699,536 ZAR 102,923,720 27/6/2014 (20,583) Net unrealised appreciation ( underlying exposure 313,141,757) 431,062 Note: The net unrealised appreciation attributed to these transactions is included in the Statements of Net Assets (see Note 2(d)). Bank of America N.A., Barclays Bank Plc, BNP Paribas S.A., Citibank N.A. London, Credit Suisse International, Deutsche Bank AG London, Goldman Sachs International, HSBC Bank Plc, JP Morgan Chase Bank N.A., Morgan Stanley and Co. International Plc, Société Générale, State Street Bank and Trust Company are the counterparties to these Open Forward Foreign Exchange Transactions. The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 75

78 BlackRock Euro Dynamic Diversified Growth Fund Portfolio of Investments as at 31 May 2014 Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding Market % Holding Market % COMMON STOCKS (SHARES) Bermuda 160,000 Kunlun Energy Co Ltd 190, ,000 Orient Overseas International Ltd 209, ,000 Sihuan Pharmaceutical Holdings Group Ltd 332, , Cayman Islands 1,757 Baidu Inc ADR 213, ,437 Changyou.com Ltd ADR 206, ,000 China Modern Dairy Holdings Ltd 112, ,800 Chow Tai Fook Jewellery Group Ltd 184, ,000 Geely Automobile Holdings Ltd 157, ,000 Hengan International Group Co Ltd 185, ,800 MGM China Holdings Ltd 205, ,234 NetEase Inc ADR 220, ,000 Shenzhou International Group Holdings Ltd 193, ,500 Tencent Holdings Ltd 261, ,000 Want Want China Holdings Ltd 202, ,145, China 383,000 Agricultural Bank of China Ltd 'H' 124, ,500 Anhui Conch Cement Co Ltd 'H' 190, ,000 Beijing Capital International Airport Co Ltd 'H' 62, ,000 China BlueChemical Ltd 'H' 55, ,000 China Communications Construction Co Ltd 'H' 172, ,000 China Life Insurance Co Ltd 'H' 178, ,500 China Railway Construction Corp Ltd 'H' 162, ,000 China Railway Group Ltd 'H' 174, ,000 CSR Corp Ltd 'H' 170, ,000 Dongfeng Motor Group Co Ltd 'H' 203, ,000 First Tractor Co Ltd 'H' 102, ,000 Haitong Securities Co Ltd 'H' 177, ,000 Jiangsu Expressway Co Ltd 'H' 200, ,500 Ping An Insurance Group Co of China Ltd 'H' 172, ,000 Shanghai Electric Group Co Ltd 'H' 64, ,600 Sinopharm Group Co Ltd 'H' 193, ,000 Travelsky Technology Ltd 'H' 32, ,000 Tsingtao Brewery Co Ltd 'H' 207, ,000 Weichai Power Co Ltd 'H' 182, ,000 ZTE Corp 'H' 189, ,017, Hong Kong 37,000 Galaxy Entertainment Group Ltd 217, ,000 Guangdong Investment Ltd 168, ,000 Lenovo Group Ltd 224, ,500 Sinotrans Shipping Ltd 29, , BONDS 3,130, , , , , , , , , , , , , , , , , , , , ,000 2,515,000 3,233,000 4,600,000 Greece Hellenic Republic Government Bond '144A' 4.75% 17/4/2019 3,125, Hellenic Republic Government Bond (Step-up Coupon) 2.00% 24/2/ , Hellenic Republic Government Bond (Step-up Coupon) 2.00% 24/2/ , Hellenic Republic Government Bond (Step-up Coupon) 2.00% 24/2/ , Hellenic Republic Government Bond (Step-up Coupon) 2.00% 24/2/ , Hellenic Republic Government Bond (Step-up Coupon) 2.00% 24/2/ , Hellenic Republic Government Bond (Step-up Coupon) 2.00% 24/2/ , Hellenic Republic Government Bond (Step-up Coupon) 2.00% 24/2/ , Hellenic Republic Government Bond (Step-up Coupon) 2.00% 24/2/ , Hellenic Republic Government Bond (Step-up Coupon) 2.00% 24/2/ , Hellenic Republic Government Bond (Step-up Coupon) 2.00% 24/2/ , Hellenic Republic Government Bond (Step-up Coupon) 2.00% 24/2/ , Hellenic Republic Government Bond (Step-up Coupon) 2.00% 24/2/ , Hellenic Republic Government Bond (Step-up Coupon) 2.00% 24/2/ , Hellenic Republic Government Bond (Step-up Coupon) 2.00% 24/2/ , Hellenic Republic Government Bond (Step-up Coupon) 2.00% 24/2/ , Hellenic Republic Government Bond (Step-up Coupon) 2.00% 24/2/ , Hellenic Republic Government Bond (Step-up Coupon) 2.00% 24/2/ , Hellenic Republic Government Bond (Step-up Coupon) 2.00% 24/2/ , Hellenic Republic Government Bond (Step-up Coupon) 2.00% 24/2/ , Hellenic Republic Government Bond (Step-up Coupon) 2.00% 24/2/ , ,731, Italy Italy Buoni Poliennali Del Tesoro 5.50% 1/11/2022 3,032, Italy Buoni Poliennali Del Tesoro 4.50% 1/5/2023 3,656, Italy Buoni Poliennali Del Tesoro 4.50% 1/3/2024 5,203, ,893, Japan 3,500 Softbank Corp 185, , Singapore 126,000 Global Logistic Properties Ltd 204, , Total Common Stocks (Shares) 6,924, United States 11,438,764 United States Treasury Inflation Indexed Bonds 0.625% 15/1/2024 8,693, ,693, Total Bonds 27,318, BlackRock Strategic Funds (BSF)

79 BlackRock Euro Dynamic Diversified Growth Fund continued Portfolio of Investments as at 31 May 2014 Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Funds Holding Market % Holding Market % FUNDS Guernsey 1,145,797 Alcentra European Floating Rate Income Fund Ltd 1,528, ,144,893 Better Capital PCC Ltd 1,435, ,187 BH Macro Ltd 5,138, ,473,500 Bluecrest Allblue Fund Ltd 4,149, ,181 HarbourVest Global Private Equity Ltd 1,282, ,660,000 NB Distressed Debt Investment Fund Ltd (GBP) 4,323, ,782 NB Distressed Debt Investment Fund Ltd () 809, ,381,070 NB Global Floating Rate Income Fund Ltd 5,342, ,010, Ireland 1,728,854 Carador Income Fund Plc 1,159, ,175 ishares JP Morgan $ Emerging Markets Bond UCITS ETF 1 5,291, ,079 Stone Harbor Investment Funds Plc - Emerging Market Debt Fund 9,887, ,338, Jersey 1,631,000 CVC Credit Partners European Opportunities Ltd 1,745, ,725,200 Foresight Solar Fund Ltd 2,120, ,865, United Kingdom 824,445 Scottish Mortgage Investment Trust Plc 10,499, ,499, Total Funds 54,713, Total Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market 88,956, Ireland 2,596,376 BlackRock Developed World Index Sub-Fund 1 40,700, ,955,181 Institutional Cash Series Plc - Institutional Euro Liquidity Fund 1 72,955, ,565 Institutional Cash Series Plc - Institutional Ultra Short Bond Fund 1 31,066, ,722, Luxembourg 573,733 BlackRock Global Funds - ASEAN Leaders X2 RF 1 5,209, ,720 BlackRock Global Funds - Asian Dragon Fund X2 () 1 1,819, ,395,525 BlackRock Global Funds - Euro Corporate Bond Fund X2 () 1 21,881, ,362,583 BlackRock Global Funds - Emerging Markets Equity Income Fund X2 () 1 11,423, ,731 BlackRock Global Funds - Euro Short Duration Bond Fund X2 () 1 13,320, ,059,285 BlackRock Global Funds - Global Corporate Bond Fund X2 () Hedged 1 64,860, ,324,788 BlackRock Global Funds - Global Equity Income X2 () 1 26,441, ,955, United Kingdom 1,742,460 BlackRock Frontiers Investment Trust Plc 1 2,591, ,591, Total Funds 292,269, Securities portfolio at market value 381,226, Other Net Assets 52,625, Total Net Assets () 433,851, This fund is managed by Blackrock. The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 77

80 BlackRock Euro Dynamic Diversified Growth Fund continued Swaps as at 31 May ,746,000 Total Return Swap (Citibank) (Fund receives Citi Dynavo2x Index and pays Fixed 0.000%) (19/6/2015) 143,678 9,816,231 Total Return Swap (Citibank) (Fund receives Emerging Lifestyle Trends Index and pays 6 Month LIBOR) (5/9/2014) 1,311,533 2,187,000 Total Return Swap (JP Morgan Chase Bank (Depository Cle)) (Fund receives Global Volatility Carry Strategy Index and pays Fixed 0.000%) (3/7/2014) 90,239 5,940,141 Total Return Swap (JP Morgan) (Fund receives JP European Basket Index and pays 12 Month LIBOR) (19/8/2014) 1,550,193 GBP 66,770 Total Return Swap (JP Morgan) (Fund receives JP European Basket Index and pays 3 Month LIBOR) (16/3/2015) (3,587) 1,692,836 Total Return Swap (JP Morgan) (Fund receives JP European Basket Index and pays Fixed 0.567%) (13/11/2014) 297,472 ( underlying exposure 36,260,850) 3,389,528 Note: The total market value of 3,389,528 is included in the Statement of Net Assets (see Note 2(d)). Open Exchange Traded Futures Contracts as at 31 May 2014 Number of Contracts Contract/ Expiration date Underlying exposure 455 Euro STOXX Utilities Index June ,531, ,965 1,320 FTSE 100 Index December ,780,631 (65,913) (166) H-Shares Index June ,902,003 (120,183) 199 Nikkei 225 (SGX) Index June ,506,410 (332,059) (183) Stoxx 600 Basic Resources Index June ,677,385 (136,360) (80) US Treasury 10 Year Note September ,291,539 (24,275) Total 38,689,493 (320,825) Note: The net unrealised depreciation of (320,825) attributed to these transactions is included in the Statement of Net Assets (see Note 2(d)). Open Forward Foreign Exchange Transactions as at 31 May 2014 Purchases Sales Date SEK 502,143,475 55,681,128 13/6/2014 (599,046) 6,689,685 THB 217,000,000 10/7/ ,409 2,031,432 AUD 3,015,000 11/7/2014 (19,686) 1,775,151 CAD 2,705,000 11/7/2014 (48,891) 6,090,000 CHF 7,432,011 11/7/2014 (5,371) 34,353,639 GBP 28,230,000 11/7/2014 (339,866) 11,767,347 JPY 1,665,315,000 11/7/2014 (231,056) 2,549,294 NZD 4,105,000 11/7/2014 3,484 76,093, ,163,000 11/7/2014 (979,777) NZD 3,165,000 2,707,214 11/7/2014 (21,240) NZD 5,040,000 ZAR 46,109,448 11/7/2014 (48,060) PLN 33,150,000 10,874,468 11/7/ ,171 RUB 378,000,000 10,749,620 11/7/2014 (1,085) 13,028,400 AUD 14,000,000 11/7/ ,108 9,010,000 CAD 9,942,211 11/7/2014 (100,922) 7,526,417 CLP 4,235,115,000 11/7/2014 (93,813) 8,000,000 GBP 4,754,631 11/7/ ,866 2,353,000 JPY 241,169,793 11/7/2014 (13,113) 7,055,891 KRW 7,360,000,000 11/7/2014 (105,860) 6,711,409 MYR 22,000,000 11/7/2014 (85,587) 10,807,552 PLN 33,150,000 11/7/2014 (77,213) 10,385,329 RUB 378,000,000 11/7/2014 (265,900) 11,335,040 ZAR 121,231,184 11/7/2014 (37,063) Net unrealised depreciation (underlying exposure 370,176,539) (2,931,511) Note: The net unrealised depreciation attributed to these transactions is included in the Statement of Net Assets (see Note 2(d)). BNP Paribas S.A., Barclays Bank Plc Wholesale, Credit Suisse International, Deutsche Bank AG London, HSBC Bank Plc, Royal Bank of Canada, State Street Bank and Trust Company, UBS AG London and Westpac Banking Corporation are the counterparties to these Open Forward Foreign Exchange Transactions. Sector Breakdown as at 31 May 2014 % of Net Assets* Funds Financial 8.92 Government 6.30 Consumer, Non-cyclical 0.33 Consumer, Cyclical 0.31 Industrial 0.31 Communications 0.24 Technology 0.11 Energy 0.04 Utilities 0.04 Basic Materials 0.01 Other Net Assets * Based on the market value of the Portfolio of Investments except for Contract For Difference, which are based on the commitment (where applicable). 78 BlackRock Strategic Funds (BSF)

81 BlackRock Euro Dynamic Diversified Growth Fund continued Written Call Options as at 31 May 2014 Number of contracts subject to Call Issuer Underlying exposure Market (5,236) CBOE SPX Volatility Index Call Option strike price expiring on 17/9/2014 1,411,164 26,923 (441,273) (428) O STOXX 50 Index Call Option strike price 3, expiring on 19/12/2014 3,177,383 12,684 (182,328) (808) IBEX 35 Mini Index Call Option strike price expiring on 19/9/2014 1,864,299 9,696 (91,304) (183) STOXX OPE 600 Index Call Option strike price expiring on 20/6/ ,300 16,470 (1,830) Total Written Call Options 6,542,146 65,773 (716,735) Note: Written Call Options are included in the Statement of Net Assets (see Note 2(d)). Where no counterparty is shown the Written Call Option is exchange traded. Purchased Call Options as at 31 May 2014 Number of contracts subject to Call Issuer Underlying exposure Market 5,236 CBOE SPX Volatility Index Call Option strike price expiring on 16/7/ ,470 (67,136) 172,672 10,700,000 EEM SPX Volatility Index Call Option (JP Morgan Chase Bank) strike price expiring on 30/6/ ,365 (142,436) 31,907 10,700,000 EEM SPX Volatility Index Call Option (JP Morgan Chase Bank) strike price expiring on 19/9/ ,914 (85,442) 87, O STOXX 50 Index Call Option strike price 3, expiring on 19/12/2014 8,911, , , FTSE 100 Index Call Option strike price GBP expiring on 19/12/2014 4,245, , , IBEX 35 Mini Index Call Option strike price expiring on 19/9/2014 3,407,941 10, , STOXX OPE 600 Index Call Option strike price expiring on 20/6/ ,764 (48,495) 28,365 Total Purchased Call Options 18,571,132 98,775 1,795,281 Purchased Put Options as at 31 May 2014 Number of contracts subject to Put Issuer Underlying exposure Market 267 DAX Index Put Option strike price 9, expiring on 18/7/2014 2,592,814 (169,602) 91, S+P 500 Index Put Option strike price 1, expiring on 21/6/ ,057 (99,137) 11,070 Total Purchased Put Options 3,176,871 (268,739) 102,784 Note: Purchased Put Options are included in the Statement of Net Assets (see Note 2(d)). Where no counterparty is shown the Purchased Put Option is exchange traded. Written Put Options as at 31 May 2014 Number of contracts subject to Put Issuer Underlying exposure Market (267) DAX Index Put Option strike price 9, expiring on 18/7/2014 1,018,704 82,007 (33,909) (104) FTSE 100 Index Put Option strike price GBP expiring on 19/12/2014 1,333, ,664 (92,684) (808) IBEX 35 Mini Index Put Option strike price expiring on 19/9/2014 1,256, ,212 (79,992) (135) Russell 2000 Index Put Option strike price 1, expiring on 21/6/ , ,310 (17,017) (183) STOXX OPE 600 Index Put Option strike price expiring on 20/6/2014 Put Option strike price expiring on 20/6/ ,130 56,730 (10,980) Total Written Put Options 4,689, ,923 (234,582) Note: Written Put Options are included in the Statement of Net Assets (see Note 2(d)). Where no counterparty is shown the Written Put Option is exchange traded. Note: Purchased Call Options are included in the Statement of Net Assets (see Note 2(d)). Where no counterparty is shown the Purchased Call Option is exchange traded. The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 79

82 BlackRock European Absolute Return Fund Portfolio of Investments as at 31 May 2014 Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding Market % of Net Assets Holding Market % of Net Assets COMMON STOCKS (SHARES) France 428,583 Cie de St-Gobain 17,893, ,576 Eiffage SA 12,873, ,767, Germany 544,132 Aixtron SE 5,906, ,689 Bayer AG 21,403, ,521 LEG Immobilien AG 14,649, ,875 Norma Group SE 7,357, ,240 Osram Licht AG 10,685, ,742 ProSiebenSat.1 Media AG 12,169, ,172, Greece 420,767 OPAP SA 5,301, ,301, Ireland 1,269,249 Ryanair Holdings Plc 9,129, ,129, Italy 3,438,516 Anima Holding SpA 14,097, ,097, Netherlands 139,641 ASML Holding NV 8,798, ,798, Portugal 1,125,712 Jeronimo Martins SGPS SA 14,099, ,099, Spain 2,303,811 CaixaBank SA 10,265, ,265, United Kingdom 2,366,228 Merlin Entertainments Plc'144A' 10,559, ,559, Total Common Stocks (Shares) 175,192, BONDS Finland 21,100,000 Pohjola Bank Plc FRN 28/6/ ,231, ,231, France 5,000,000 BPCE SA FRN 8/10/2014 5,001, ,001, ,674,000 Ireland GE Capital European Funding 5.25% 18/5/ ,346, ,346, Netherlands 120,000,000 BMW Finance NV FRN 27/11/ ,946, ,200,000 Cooperatieve Centrale Raiffeisen- Boerenleenbank BA/Netherlands FRN 19/8/ ,197, ,100,000 Cooperatieve Centrale Raiffeisen- Boerenleenbank BA/Netherlands FRN 23/11/2015 5,099, ,007,000 Cooperatieve Centrale Raiffeisen- Boerenleenbank BA/Netherlands FRN 15/1/ ,027, ,200,000 ING Bank NV FRN 28/11/ ,313, ,583, ,000,000 Switzerland Credit Suisse AG/London FRN 19/1/ ,022, ,022, United Kingdom 10,000,000 HSBC Bank Plc FRN 21/5/ ,005, ,005, Total Bonds 376,191, CERTIFICATES OF DEPOSIT France 120,000,000 BNP Paribas SA 20/2/2015 (Zero Coupon) 119,475, ,475, Luxembourg 49,500,000 Svenska Handelsbanken AB 0.32% 17/11/ ,510, ,510, Total Certificates of Deposit 168,985, COMMERCIAL PAPER Luxembourg 60,000,000 Banque Federative du Credit Mutuel SA 21/11/2014 (Zero Coupon) 59,901, ,000,000 Deutsche Bank AG 21/11/2014 (Zero Coupon) 59,874, ,000,000 Nordea Bank AB 23/2/2015 (Zero Coupon) 59,848, ,000,000 Standard Chartered Bank 20/2/2015 (Zero Coupon) 59,806, ,000,000 Standard Chartered Bank 20/2/2015 (Zero Coupon) 59,806, ,000,000 Svenska Handelsbanken AB 22/10/2014 (Zero Coupon) 4,994, ,230, Total Commercial Paper 304,230, Total Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market 1,024,600, BlackRock Strategic Funds (BSF)

83 BlackRock European Absolute Return Fund continued Portfolio of Investments as at 31 May 2014 Funds Holding Market % of Net Assets Ireland 114,668,617 Institutional Cash Series Plc - Institutional Euro Assets Liquidity Fund 1 114,668, ,161,495 Institutional Cash Series Plc - Institutional Euro Liquidity Fund 1 12,161, Total Funds 126,830, Securities portfolio at market value 1,151,430, Other Net Assets 144,329, Total Net Assets () 1,295,759, This fund is managed by BlackRock. Open Exchange Traded Futures Contracts as at 31 May 2014 Number of Contracts Contract/ Expiration date Underlying exposure (697) FTSE 250 Index June ,370,761 (941,088) (1,563) STOXX MID 200 Index June ,657,605 (1,595,825) (7,035) STOXX SMALL 20 Index June ,766,775 (2,527,580) (4,227) STOXX OPE 600 Index June ,640,995 (4,741,340) Total 211,436,136 (9,805,833) Note: The net unrealised depreciation of attributed to these transactions is included in the Statement of Net Assets (see Notes 2(d)). Written Put Options as at 31 May 2014 Number of contracts subject to Put Issuer Underlying exposure Market (1,617) Lanxess AG Put Option strike price expiring on 20/6/2014 1,843,276 59,444 (88,935) (13,588) Vivendi SA Put Options strike price expiring on 20/6/2014 9,529, ,769 (258,172) Total Written Put Options 11,373, ,213 (347,107) Note: Written Put Options are included in the Statement of Net Assets (see Note 2(d)). Where no counterparty is shown the Written Put Option is exchange traded. Open Forward Foreign Exchange Transactions as at 31 May 2014 Purchases Sales Date CHF 10,250,338 8,398,316 13/6/2014 (1,836) 144,432 CHF 176,463 13/6/2014 (116) 317,663 GBP 259,237 13/6/2014 (1,025) 36,367 SEK 327,073 13/6/ GBP 13,442,858 16,502,827 13/6/ ,930 SEK 823,724 91,342 13/6/2014 (696) Net unrealised appreciation (underlying exposure 25,512,112) 19,631 Note: The net unrealised appreciation attributed to these transactions is included in the Statement of Net Assets (see Note 2(d)). State Street Bank and Trust Company is the counterparty to these Open Forward Foreign Exchange Transactions. Sector Breakdown as at 31 May 2014 % of Net Assets* Financial Consumer, Cyclical Funds 9.79 Industrial 3.19 Consumer, Non-cyclical 2.74 Technology 1.14 Diversified 1.09 Communications 0.94 Other Net Assets * Based on the market value of the Portfolio of Investments except for Contract For Difference, which are based on the commitment (where applicable). The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 81

84 BlackRock European Absolute Return Fund continued Contracts For Difference as at 31 May 2014 Holding Commitment Holding Commitment Belgium (271,096) Belgacom SA (6,599,832) (1,552,971) (165,880) Colruyt SA (6,824,303) (244,344) (13,424,135) (1,797,315) Denmark 838,118 GN Store Nord A/S 16,900,344 1,874,259 (29,495) Tryg A/S (2,064,850) (18,306) 14,835,494 1,855,953 Finland (579,941) Fortum OYJ (10,340,348) (864,076) (10,340,348) (864,076) France (157,276) Air Liquide SA (16,742,030) (1,246,701) 862,630 Applus Services SA 14,147,132 1,638, ,692 Cap Gemini SA 14,166,698 1,571,424 (482,738) Carrefour SA (12,881,863) 69,980 (70,807) Casino Guichard Perrachon SA (6,636,032) (679,931) (1,725,437) Commerzbank AG (19,963,306) (932,299) (1,185,923) EDP - Energias de Portugal SA (4,100,922) (75,479) (413,820) Eutelsat Communications SA (10,647,589) (1,582,899) 197,547 Schneider Electric SA 13,555, ,222 (168,026) Technip SA (13,272,374) (627,638) (146,709) Valeo SA (14,411,225) (1,661,242) (56,785,836) (3,229,566) Germany 330,012 Airbus Group NV 17,302,529 (670,716) (1,991,680) Enel SpA (8,317,256) (312,662) (91,086) Linde AG (13,977,147) (750,205) 220,758 Publicis Groupe SA 13,909, ,140 8,918,088 (1,346,443) Italy (703,628) Atlantia SpA (14,234,395) (930,756) (8,530,336) Intesa Sanpaolo SpA (21,052,869) (2,345,007) (23,817,067) Telecom Italia (21,828,342) (1,531,747) (57,115,606) (4,807,510) Netherlands (244,273) Fugro NV - CVA (10,322,977) 304,634 (2,117,428) SNS REAAL NV* 21 (10,322,977) 304,655 Spain (1,513,898) Distribuidora Internacional de Alimentacion SA (10,182,478) (819,154) (10,182,478) (819,154) Sweden (103,942) Millicom International Cellular SA SDR (7,052,818) 580,872 (7,052,818) 580,872 Switzerland 131,845 Actelion Ltd 9,589,180 1,322, ,359 Clariant AG 9,888, ,974 (600,796) Credit Suisse Group AG Reg (13,084,291) 971, ,335 Holcim Ltd 16,205,076 (600,928) 51,529 Partners Group Holding AG 9,943, ,226 98,035 Roche Holding AG 21,245, , ,030 UBS AG 13,261,485 (65,906) 67,048,915 3,616,214 United Kingdom (1,745,387) Aberdeen Asset Management Plc (9,471,441) (923,172) 236,312 AstraZeneca Plc 12,492,410 (949,801) 3,131,593 Aviva Plc 20,212,340 1,048,651 (2,784,513) BAE Systems Plc (14,483,858) 75,524 2,062,996 Capital & Counties Properties Plc 8,572,492 (197,233) 731,455 Drax Group Plc 5,633,790 (1,008,630) (699,924) easyjet Plc (13,165,407) (309,813) 2,946,322 Elementis Plc 10,388,464 1,139, ,960 Hargreaves Lansdown Plc 10,471,675 (1,278,635) 979,858 Hunting Plc 9,847,883 (579,529) 1,058,868 IG Group Holdings Plc 7,830, ,574 (2,966,591) International Consolidated Airlines Group SA (14,376,934) (1,288,125) 390,953 Provident Financial Plc 10,083,749 1,890,326 1,096,782 Prudential Plc 18,702,030 1,429,321 (117,799,132) Rolls Royce Holdings Plc (144,822) (144,822) (3,837,463) Royal Bank of Scotland Group Plc (16,295,156) (897,710) (1,548,484) Royal Mail Plc (9,700,879) (266,160) 1,057,526 Sports Direct International Plc 10,400,950 1,006,683 10,285,554 Taylor Wimpey Plc 13,732,497 (540,410) 4,689,870 William Hill Plc 20,478,649 (1,348,657) 81,208,570 (2,815,038) Total market value ( underlying exposure 669,927,756) (8,955,620) (10,677,553) Norway 153,989 Gjensidige Forsikring ASA 2,089,759 (294,934) (213,370) Norwegian Air Shuttle AS (6,508,575) (915,934) (408,526) Seadrill Ltd (11,323,673) (145,277) (15,742,489) (1,356,145) * Investments which are less than 0.5 have been rounded down to zero. Note: The net unrealised depreciation attributed to these transactions is included in the Statement of Net Assets (see Note 2(d)). Deutsche Bank and JP Morgan are the counterparties to these Contracts for Difference. 82 BlackRock Strategic Funds (BSF)

85 BlackRock European Constrained Credit Strategies Fund Portfolio of Investments as at 31 May 2014 Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding Market % of Net Assets Holding Market % of Net Assets COMMON / PREFERRED STOCKS (SHARES) Belgium 1,475 Euronav NV 13, , Bermuda 10,156 Avance Gas Holding Ltd 160, , Germany 4,202 Volkswagen AG (Pref) 820, , Greece 124,754 Intralot SA-Integrated Lottery Systems & Services 260, , Ireland 17,411 Smurfit Kappa Group Plc 305, , Italy 55,474 Astaldi SpA 437, ,387 Telecom Italia SpA 608, ,046, Luxembourg 11,520 ArcelorMittal 129, ,400 ArcelorMittal (Pref) 2,289, ,418, Marshall Islands 21,040 Tanker Investments Ltd 166, , Netherlands 45,227 Ziggo NV 1,564, ,564, Spain 14,677 Pescanova SA* Sweden 47,700 SAS AB 69, , United Kingdom 190,607 Barclays Plc 575, ,898 Ladbrokes Plc 644, ,426 Royal Bank of Scotland Group Plc M (Pref) 682, ,086 Royal Bank of Scotland Group Plc R (Pref) 36, ,827 WM Morrison Supermarkets Plc 183, ,122, United States 26,703 RBS Capital Funding Trust V 'E' (Pref) 465, ,730 RBS Capital Funding Trust VII 'G' (Pref) 1,585, ,050, Total Common / Preferred Stocks (Shares) 11,000, BONDS France GBP 800,000 BPCE SA 5.25% 16/4/2029 1,000, ,775,000 Credit Agricole SA '144A' 3.875% 15/4/2024 1,314, ,000 Credit Agricole SA FRN 23/6/ , ,000 Electricite de France FRN 22/1/ , GBP 500,000 Electricite de France FRN 22/7/ , ,000 Fonciere Des Regions 0.875% 1/4/ , ,000 Kerneos Tech Group SAS Reg 5.75% 1/3/ , ,000 Numericable Group SA Reg 5.375% 15/5/ , ,467, Germany 1,200,000 Bayerische Landesbank FRN 7/2/2019 1,114, ,700,000 Commerzbank AG 7.75% 16/3/2021 3,346, ,000 Commerzbank AG '144A' 8.125% 19/9/ , ,000 Commerzbank AG Reg 8.125% 19/9/ , ,000 KFW 3.125% 4/7/ , ,000 KFW 0.50% 25/7/ , ,000 KFW 0.875% 13/10/ , ,037,200 TUI AG Reg 2.75% 24/3/2016 1,472, ,430, Ireland 755,000 AIB Mortgage Bank 4.875% 29/6/ , ,400,000 Allied Irish Banks Plc 2.75% 16/4/2019 1,406, ,085,000 Bank of Ireland 3.25% 15/1/2019 2,150, ,375,000 Bank of Ireland Mortgage Bank 2.75% 22/3/2018 1,462, ,000 Bank of Ireland Mortgage Bank 3.625% 2/10/ , ,130,000 CVC Cordatus Loan Fund III Ltd 'A1' FRN 8/7/2027 3,120, ,000 FGA Capital Ireland Plc 2.625% 17/4/ , ,052, * Investments which are less than 0.5 have been rounded down to zero. Securities pledged or given in guarantee, see Note 14, for further details. The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 83

86 BlackRock European Constrained Credit Strategies Fund continued Portfolio of Investments as at 31 May 2014 Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding Market % of Net Assets Holding Market % of Net Assets Italy 570,000 A2A SpA 4.375% 10/1/ , ,000 Banca Monte dei Paschi di Siena SpA 4.875% 15/9/ , ,350,000 Banca Monte dei Paschi di Siena SpA 2.875% 16/4/2021 1,370, ,000 Banco Popolare SC 3.50% 14/3/ , ,155 Berica 8 Residential Mbs Srl 'A' FRN 31/3/ , GBP 220,000 Enel SpA FRN 15/9/ , ,994 F-E Gold Srl 'A2' FRN 30/7/ , ,020,000 Gamenet SpA Reg 7.25% 1/8/2018 1,051, ,956,000 Italy Buoni Poliennali Del Tesoro 4.75% 1/5/2017 4,368, ,945,000 Italy Buoni Poliennali Del Tesoro 4.75% 1/6/2017 4,362, ,038 Leasimpresa Finance Srl 'A' FRN 22/12/ , ,075,000 Mediobanca SpA 2.25% 18/3/2019 1,096, ,000 UniCredit SpA Reg 6.95% 31/10/ , ,665,000 UniCredit SpA Reg FRN 28/10/2025 1,852, ,050,000 Unione di Banche Italiane SCpA 2.875% 18/2/2019 1,101, ,600, Jersey GBP 150,000 AA Bond Co Ltd 3.781% 31/7/ , GBP 860,000 AA Bond Co Ltd 6.269% 31/7/2025 1,225, ,412, Luxembourg 1,000,000 APERAM 2.625% 30/9/2020 1,216, ,000 CNH Industrial Finance Europe SA 2.75% 18/3/ , ,000 Galapagos SA Reg 5.375% 15/6/ , ,000 GELF Bond Issuer I SA 3.125% 3/4/ , ,000 Intralot Capital Luxembourg SA Reg 6.00% 15/5/ , ,000 Intralot Finance Luxembourg SA Reg 9.75% 15/8/ , ,000 Play Finance 2 SA Reg 5.25% 1/2/ , ,000 Telecom Italia Capital SA 6.375% 15/11/ , ,000 Telecom Italia Capital SA 6.00% 30/9/ , ,000 Telecom Italia Capital SA 7.721% 4/6/ , ,300,000 Telecom Italia Finance SA 6.125% 15/11/2016 5,351, ,912,000 Telecom Italia Finance SA 7.75% 24/1/2033 3,789, ,126, Mexico 1,640,000 Cemex SAB de CV '144A' 7.25% 15/1/2021 1,309, ,309, Netherlands 1,215,000 Achmea BV FRN 4/4/2043 1,395, ,000 Netherlands Government Bond '144A' 4.00% 15/7/ , GBP 170,000 Petrobras Global Finance BV 5.375% 1/10/ , GBP 480,000 Petrobras Global Finance BV 6.625% 16/1/ , ,082,000 Petrobras Global Finance BV 7.25% 17/3/ , ,845,000 Portugal Telecom International Finance BV 4.625% 8/5/2020 1,998, ,000 Volkswagen International Finance NV '144A' 5.50% 9/11/ , ,700,000 Volkswagen International Finance NV Reg 5.50% 9/11/2015 6,819, ,107, Portugal 900,000 Caixa Geral de Depositos SA 5.625% 4/12/ , ,000 Caixa Geral de Depositos SA 3.00% 15/1/ , ,190,000 Portugal Government International Bond Reg 3.50% 25/3/2015 3,140, ,154,795 TAGUS-Sociedade de Titularizacao de Creditos SA / Volta II Electricity Receivables 2.98% 16/2/2018 2,165, ,784, Spain CHF 1,100,000 Autonomous Community of Catalonia 2.125% 1/10/ , ,000 Autonomous Community of Valencia Spain 4.00% 2/11/ , ,000 Ayt Cedulas Cajas Global 4.00% 21/3/ , ,000 Ayt Cedulas Cajas Global 4.25% 14/6/ , ,000 AyT Cedulas Cajas X Fondo de Titulizacion 'X' 3.75% 30/6/ , ,000 AyT Cedulas Cajas XXIII Fondo de Titulizacion de Activos 4.75% 15/6/ , ,000 Banco Bilbao Vizcaya Argentaria SA FRN 29/5/ , ,000,000 Banco Bilbao Vizcaya Argentaria SA Reg FRN 29/12/2049 1,047, ,000 Banco Mare Nostrum SA 3.125% 21/1/ , ,300,000 Banco Popular Espanol SA 2.125% 8/10/2019 1,315, ,000 Banco Santander SA FRN 12/3/ , ,500,000 Bankia SA 3.50% 17/1/2019 2,616, ,200,000 Bankia SA FRN 22/5/2024 1,191, ,000 BBVA Subordinated Capital SAU FRN 11/4/ , ,500,000 BPE Financiaciones SA 2.875% 19/5/2016 1,537, Securities pledged or given in guarantee, see Note 14, for further details. 84 BlackRock Strategic Funds (BSF)

87 BlackRock European Constrained Credit Strategies Fund continued Portfolio of Investments as at 31 May 2014 Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding Market % of Net Assets Holding Market % of Net Assets Spain continued 1,500,000 BPE Financiaciones SA 2.50% 1/2/2017 1,527, ,100,000 CaixaBank SA 3.125% 14/5/2018 1,173, ,000 Cedulas TDA 1 Fondo de Titulizacion de Activos FRN 8/4/ , ,000 Cedulas TDA % 28/3/ , ,100,000 Cedulas TDA 6 Fondo de Titulizacion de Activos 3.875% 23/5/2025 1,129, ,000,000 Cedulas TDA 6 Fondo de Titulizacion de Activos 4.25% 10/4/2031 1,015, ,000 Cedulas TDA 7 Fondo de Titulizacion de Activos 3.50% 20/6/ , ,200,000 Spain Government Bond 2.10% 30/4/2017 2,268, ,672,000 Spain Government Bond 5.50% 30/7/2017 3,036, ,000 Spain Government Bond 5.50% 30/4/ , ,945, Supranational 800,000 European Financial Stability Facility 0.50% 7/3/ , ,000 European Union 2.50% 4/12/ , ,633, Switzerland 350,000 Credit Suisse AG FRN 18/9/ , ,000 UBS AG 5.125% 15/5/ , ,000 UBS AG FRN 12/2/ , ,814, United Kingdom GBP 617,070 Annington Finance No 4 Plc 'B3' FRN 10/1/ , ,000 Barclays Bank Plc 7.625% 21/11/ , ,237,000 Barclays Plc FRN 15/12/2049 1,341, GBP 320,000 BUPA Finance Plc 5.00% 25/4/ , GBP 160,000 Premier Foods Finance Plc Reg 6.50% 15/3/ , ,325,000 Royal Bank of Scotland Group Plc 6.00% 19/12/2023 1,044, ,000 Royal Bank of Scotland Group Plc '144A' FRN 29/10/ , GBP 210,000 Stonegate Pub Co Financing Plc Reg 5.75% 15/4/ , ,688, United States GBP 1,190,000 Goldman Sachs Group Inc/The 4.25% 29/1/2026 1,503, ,630,000 Meccanica Holdings USA Inc '144A' 6.25% 15/7/2019 2,119, ,000 Meccanica Holdings USA Inc '144A' 7.375% 15/7/ , ,305,000 Meccanica Holdings USA Inc '144A' 6.25% 15/1/2040 1,597, ,350,000 Verizon Communications Inc 4.15% 15/3/2024 1,041, ,663, Total Bonds 121,035, Total Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market 132,035, Funds Ireland 8,117,481 Institutional Cash Series Plc - Institutional Euro Assets Liquidity Fund 1 8,117, Total Funds 8,117, Other Transferable Securities and Money Market Instruments BONDS 3,168,000 Ireland Arbour Clo Ltd X 'A' FRN 16/6/2027 3,168, ,168, Jersey GBP 1,200,000 Enterprise Funding Ltd 3.50% 10/9/2020 1,571, ,571, Total Bonds 4,739, Total Other Transferable Securities and Money Market Instruments 4,739, Securities portfolio at market value 144,891, Other Net Liabilities (7,493,947) (5.45) Total Net Assets () 137,397, This fund is managed by BlackRock. Securities pledged or given in guarantee, see Note 14, for further details. The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 85

88 BlackRock European Constrained Credit Strategies Fund continued Swaps as at 31 May , ,000 1,082, , , ,000 1,610,000 1,062,874 1,340, ,000 40, , , ,000 1,635, ,000 2,150, ,000 Credit Default Swaps (Bank of America International Ltd) (Fund receives Fixed 5.000% and provides default protection on CNH Industrial Finance Europe SA 6.250% 9/3/2018) (20/3/2019) (120) Credit Default Swaps (Bank of America Securities LLC) (Fund receives default protection on Ireland Government Bond 4.500% 18/4/2020 and pays Fixed 1.000%) (20/3/2018) (13,020) Credit Default Swaps (Bank of America) (Fund receives default protection on Brazilian Government International Bond % 6/3/2030 and pays Fixed 1.000%) (20/6/2019) (16,248) Credit Default Swaps (Bank of America) (Fund receives default protection on GDF Suez 5.125% 19/2/2018 and pays Fixed 1.000%) (20/6/2019) (649) Credit Default Swaps (Bank of America) (Fund receives default protection on GKN Holdings Plc 6.750% 28/10/2019 and pays Fixed 1.000%) (20/6/2019) (592) Credit Default Swaps (Bank of America) (Fund receives default protection on Portugal Telecom International Finance BV 4.375% 24/3/2017 and pays Fixed 5.000%) (20/6/2018) (66,811) Credit Default Swaps (Bank of America) (Fund receives default protection on Stora Enso OYJ and pays Fixed 5.000%) (20/9/2018) (110,153) Credit Default Swaps (Bank of America) (Fund protection on Virgin Media Finance Plc 5.125% 15/2/2022) (20/9/2018) 65,075 Credit Default Swaps (Barclays Bank) (Fund receives default protection on AXA SA 4.500% 23/1/2015 and pays Fixed 1.000%) (20/6/2018) (52,217) Credit Default Swaps (Barclays Bank) (Fund receives default protection on Dixons Retail Plc 8.750% 3/8/2015 and pays Fixed 5.000%) (20/12/2017) (26,028) Credit Default Swaps (Barclays Bank) (Fund receives default protection on Dixons Retail Plc 8.750% 3/8/2015 and pays Fixed 5.000%) (20/12/2017) (6,941) Credit Default Swaps (Barclays Bank) (Fund receives default protection on Finmeccanica Finance SA/ Old 5.750% 12/12/2018 and pays Fixed 5.000%) (20/3/2016) (2,173) Credit Default Swaps (Barclays Bank) (Fund receives default protection on Finmeccanica Finance SA/ Old 5.750% 12/12/2018 and pays Fixed 5.000%) (20/6/2018) (12,423) Credit Default Swaps (Barclays Bank) (Fund receives default protection on Finmeccanica Finance SA/ Old 5.750% 12/12/2018 and pays Fixed 5.000%) (20/12/2018) (21,873) Credit Default Swaps (Barclays Bank) (Fund receives default protection on France Government Bond OAT 4.250% 25/4/2019 and pays Fixed 0.250%) (20/6/2018) (19,389) Credit Default Swaps (Barclays Bank) (Fund receives default protection on GKN Holdings Plc 6.750% 28/10/2019 and pays Fixed 1.000%) (20/6/2019) (979) Credit Default Swaps (Barclays Bank) (Fund receives default protection on Italy Government International Bond 6.875% 27/9/2023 and pays Fixed 1.000%) (20/3/2018) (104,778) Credit Default Swaps (Barclays Bank) (Fund receives default protection on itraxx Europe Crossover Series 21 Version 1 and pays Fixed 5.000%) (20/6/2019) (3,989) 210, ,444 1,310, ,000 10, , , , , , , ,438 1,000,000 1,340,000 1,600,000 33, , ,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on itraxx Europe Senior Financials Series 19 Version 1 and pays Fixed 1.000%) (20/6/2018) (8,340) Credit Default Swaps (Barclays Bank) (Fund receives default protection on itraxx Europe Senior Financials Series 19 Version 1 and pays Fixed 1.000%) (20/6/2018) (24,595) Credit Default Swaps (Barclays Bank) (Fund receives default protection on itraxx Europe Senior Financials Series 20 Version 1 and pays Fixed 1.000%) (20/12/2018) (14,499) Credit Default Swaps (Barclays Bank) (Fund receives default protection on Marks & Spencer Plc 6.125% 2/12/2019 and pays Fixed 1.000%) (20/3/2019) (1,186) Credit Default Swaps (Barclays Bank) (Fund receives default protection on Peugeot SA 8.375% 15/7/2014 and pays Fixed 5.000%) (20/3/2018) (2,005) Credit Default Swaps (Barclays Bank) (Fund receives default protection on Peugeot SA 8.375% 15/7/2014 and pays Fixed 5.000%) (20/9/2018) (98,964) Credit Default Swaps (Barclays Bank) (Fund receives default protection on Portugal Obrigacoes do Tesouro OT 5.450% 23/9/2013 and pays Fixed 1.000%) (20/12/2017) (68,807) Credit Default Swaps (Barclays Bank) (Fund receives default protection on Portugal Obrigacoes do Tesouro OT 5.450% 23/9/2013 and pays Fixed 1.000%) (20/12/2015) (33,689) Credit Default Swaps (Barclays Bank) (Fund receives default protection on Portugal Obrigacoes do Tesouro OT 5.450% 23/9/2013 and pays Fixed 1.000%) (20/6/2017) (209,048) Credit Default Swaps (Barclays Bank) (Fund receives default protection on Stena AB 6.125% 1/2/2017 and pays Fixed 5.000%) (20/12/2017) (87,975) Credit Default Swaps (Barclays Bank) (Fund receives default protection on Stora Enso OYJ 5.125% 23/6/2014 and pays Fixed 5.000%) (20/9/2018) (37,912) Credit Default Swaps (Barclays Bank) (Fund receives default protection on Unitymedia KabelBW GmbH 9.625% 1/12/2019 and pays Fixed 5.000%) (20/9/2018) (24,818) Credit Default Swaps (Barclays Bank) (Fund receives Fixed 0.250% and provides default protection on France Government Bond OAT 4.250% 25/4/2019) (20/6/2023) 26,639 Credit Default Swaps (Barclays Bank) (Fund receives Fixed 1.000% and provides default protection on Aviva Plc 9.500% 20/6/2016) (20/6/2018) 48,932 Credit Default Swaps (Barclays Bank) (Fund receives Fixed 1.000% and provides default protection on Italy Government International Bond 6.875% 27/9/2023) (20/3/2018) 87,022 Credit Default Swaps (Barclays Bank) (Fund receives Fixed 1.000% and provides default protection on Italy Government International Bond 6.875% 27/9/2023) (20/3/2018) 2,091 Credit Default Swaps (Barclays Bank) (Fund receives Fixed 1.000% and provides default protection on Ladbrokes Group Finance Plc 7.625% 5/3/2017) (20/3/2019) 8,167 Credit Default Swaps (Barclays Bank) (Fund receives Fixed 1.000% and provides default protection on Ladbrokes Group Finance Plc 7.625% 5/3/2017) (20/3/2019) 6, BlackRock Strategic Funds (BSF)

89 BlackRock European Constrained Credit Strategies Fund continued Swaps as at 31 May , ,000 1,050, , ,000 55, , , , , , , , , , , , , ,000 Credit Default Swaps (Barclays Bank) (Fund receives Fixed 5.000% and provides default protection on Astaldi SpA 7.125% 1/12/2020) (20/6/2019) 2,628 Credit Default Swaps (Barclays Bank) (Fund receives Fixed 5.000% and provides default protection on Finmeccanica Finance SA/Old 5.750% 12/12/2018) (20/3/2018) 25,240 Credit Default Swaps (Barclays Bank) (Fund receives Fixed 5.000% and provides default protection on itraxx Europe Sub Financials Series 20 Version 1) (20/12/2018) 9,167 Credit Default Swaps (Barclays Bank) (Fund receives Fixed 5.000% and provides default protection on Portugal Telecom International Finance BV 4.375% 24/3/2017) (20/9/2017) 39,223 Credit Default Swaps (Barclays Bank) (Fund receives Fixed 5.000% and provides default protection on Sunrise Communications Holdings SA 8.500% 31/12/2018) (20/12/2017) 64,874 Credit Default Swaps (Barclays Bank) (Fund receives Fixed 5.000% and provides default protection on TUI AG 2.750% 24/3/2016) (20/6/2019) 555 Credit Default Swaps (BNP Paribas) (Fund receives default protection on AXA SA 6.000% 18/6/2013 and pays Fixed 1.000%) (20/6/2018) (33,728) Credit Default Swaps (BNP Paribas) (Fund receives default protection on Banco Comercial Portugues SA FRN 17/6/2013 and pays Fixed 5.000%) (20/3/2016) (146,433) Credit Default Swaps (BNP Paribas) (Fund receives default protection on Banco Espirito Santo SA 0.454% 19/1/2015 and pays Fixed 5.000%) (20/6/2018) (54,473) Credit Default Swaps (BNP Paribas) (Fund receives default protection on Caja de Ahorros y Pensiones de Barcelona 3.940% 28/2/2019 and pays Fixed 3.000%) (20/6/2017) (8,950) Credit Default Swaps (BNP Paribas) (Fund receives default protection on Caja de Ahorros y Pensiones de Barcelona 3.940% 28/2/2019 and pays Fixed 3.000%) (20/6/2017) (11,406) Credit Default Swaps (BNP Paribas) (Fund receives default protection on GKN Holdings Plc 6.750% 28/10/2019 and pays Fixed 1.000%) (20/6/2019) (1,375) Credit Default Swaps (BNP Paribas) (Fund receives default protection on Iberdrola Finanzas SAU 3.500% 22/6/2015 and pays Fixed 1.000%) (20/6/2019) (2,115) Credit Default Swaps (BNP Paribas) (Fund receives default protection on Marks & Spencer Plc 6.125% 2/12/2019 and pays Fixed 1.000%) (20/12/2018) (9,644) Credit Default Swaps (BNP Paribas) (Fund receives default protection on Peugeot SA 8.375% 15/7/2014 and pays Fixed 5.000%) (20/9/2017) (99,856) Credit Default Swaps (BNP Paribas) (Fund receives default protection on St-Gobain Nederland BV and pays Fixed 1.000%) (20/9/2018) (31,516) Credit Default Swaps (BNP Paribas) (Fund receives default protection on Stena AB 6.125% 1/2/2017 and pays Fixed 5.000%) (20/3/2018) (27,333) Credit Default Swaps (BNP Paribas) (Fund receives default protection on Unitymedia KabelBW GmbH 9.625% 1/12/2019 and pays Fixed 5.000%) (20/9/2018) (27,443) Credit Default Swaps (BNP Paribas) (Fund receives Fixed 1.000% and provides default protection on Aviva Plc 9.500% 20/6/2016) (20/6/2018) 32, , , , ,437 1,030, , , ,000 1,775, , , ,000 3,050,000 1,522,000 1,799, , ,000 2,790,000 Credit Default Swaps (BNP Paribas) (Fund receives Fixed 1.000% and provides default protection on E.ON International Finance BV 6.375% 29/5/2017) (20/6/2019) 2,501 Credit Default Swaps (BNP Paribas) (Fund receives Fixed 1.000% and provides default protection on Glencore Finance Europe SA 6.500% 27/2/2019) (20/6/2021) 5,252 Credit Default Swaps (BNP Paribas) (Fund receives Fixed 5.000% and provides default protection on CIR-Compagnie Industriali Riunite SpA 5.750% 16/12/2024) (20/3/2019) 13,951 Credit Default Swaps (BNP Paribas) (Fund receives Fixed 5.000% and provides default protection on Virgin Media Finance Plc 5.125% 15/2/2022) (20/9/2018) 34,253 Credit Default Swaps (Citibank) (Fund receives default protection on Brazilian Government International Bond % 6/3/2030 and pays Fixed 1.000%) (20/6/2019) (21,050) Credit Default Swaps (Citibank) (Fund receives default protection on British Airways Plc 8.750% 23/8/2016 and pays Fixed 5.000%) (20/12/2018) (33,696) Credit Default Swaps (Citibank) (Fund receives default protection on Dixons Retail Plc 8.750% 3/8/2015 and pays Fixed 5.000%) (20/6/2018) (18,247) Credit Default Swaps (Citibank) (Fund receives default protection on Dixons Retail Plc 8.750% 3/8/2015 and pays Fixed 5.000%) (20/6/2017) (99,846) Credit Default Swaps (Citibank) (Fund receives default protection on France Government Bond OAT 4.250% 25/4/2019 and pays Fixed 0.250%) (20/6/2018) (24,354) Credit Default Swaps (Citibank) (Fund receives default protection on GDF Suez 5.125% 19/2/2018 and pays Fixed 1.000%) (20/6/2019) (1,181) Credit Default Swaps (Citibank) (Fund receives default protection on GKN Holdings Plc 6.750% 28/10/2019 and pays Fixed 1.000%) (20/6/2019) (909) Credit Default Swaps (Citibank) (Fund receives default protection on Ireland Government Bond 5.400% 13/3/2025 and pays Fixed 1.000%) (20/3/2017) (119,734) Credit Default Swaps (Citibank) (Fund receives default protection on itraxx Europe Crossover Series 20 Version 1 and pays Fixed 5.000%) (20/12/2018) (4,309) Credit Default Swaps (Citibank) (Fund receives default protection on itraxx Europe Crossover Series 21 Version 1 and pays Fixed 5.000%) (20/6/2019) 1,503 Credit Default Swaps (Citibank) (Fund receives default protection on itraxx Europe Crossover Series 21 Version 1 and pays Fixed 5.000%) (20/6/2019) 1,777 Credit Default Swaps (Citibank) (Fund receives default protection on itraxx Europe Crossover Series 21 Version 1 and pays Fixed 5.000%) (20/6/2019) 691 Credit Default Swaps (Citibank) (Fund receives default protection on itraxx Europe Senior Financials Series 20 Version 1 and pays Fixed 1.000%) (20/12/2018) (20,417) Credit Default Swaps (Citibank) (Fund receives default protection on itraxx Europe Senior Financials Series 20 Version 1 and pays Fixed 1.000%) (20/12/2018) (31,123) The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 87

90 BlackRock European Constrained Credit Strategies Fund continued Swaps as at 31 May ,850,000 2,460, , ,000 1,350, ,000 75, ,000 1,085, , , ,000 1,490,000 2,280, , , , ,000 Credit Default Swaps (Citibank) (Fund receives default protection on itraxx Europe Senior Financials Series 20 Version 1 and pays Fixed 1.000%) (20/12/2018) (26,063) Credit Default Swaps (Citibank) (Fund receives default protection on itraxx Europe Series 9 Version 1 and pays Fixed 5.000%) (20/6/2018) (466,816) Credit Default Swaps (Citibank) (Fund receives default protection on Peugeot SA 8.375% 15/7/2014 and pays Fixed 5.000%) (20/6/2018) (64,024) Credit Default Swaps (Citibank) (Fund receives default protection on Peugeot SA 8.375% 15/7/2014 and pays Fixed 5.000%) (20/9/2017) (53,531) Credit Default Swaps (Citibank) (Fund receives default protection on Portugal Obrigacoes do Tesouro OT 4.950% 25/10/2023 and pays Fixed 1.000%) (20/6/2015) (24,772) Credit Default Swaps (Citibank) (Fund receives default protection on Portugal Obrigacoes do Tesouro OT 5.450% 23/9/2013 and pays Fixed 1.000%) (20/9/2017) (61,226) Credit Default Swaps (Citibank) (Fund receives default protection on Portugal Obrigacoes do Tesouro OT 5.450% 23/9/2013 and pays Fixed 1.000%) (20/3/2018) (6,042) Credit Default Swaps (Citibank) (Fund receives default protection on Portugal Obrigacoes do Tesouro OT 5.450% 23/9/2013 and pays Fixed 1.000%) (20/6/2017) (167,389) Credit Default Swaps (Citibank) (Fund receives Fixed 0.250% and provides default protection on France Government Bond OAT 4.250% 25/4/2019) (20/6/2023) 32,519 Credit Default Swaps (Citibank) (Fund receives Fixed 1.000% and provides default protection on Glencore Finance Europe SA 6.500% 27/2/2019) (20/6/2021) 11,299 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection on CNH Industrial Finance Europe SA 6.250% 9/3/2018) (20/12/2018) 746 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection on CNH Industrial Finance Europe SA 6.250% 9/3/2018) (20/3/2019) (2,383) Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection on itraxx Europe Sub Financials Series 20 Version 1) (20/12/2018) 15,298 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection on itraxx Europe Sub Financials Series 20 Version 1) (20/12/2018) 19,793 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection on Rexel SA 5.125% 15/6/2020) (20/6/2019) 3,915 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection on Rexel SA 5.125% 15/6/2020) (20/6/2019) 5,331 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection on Rexel SA 5.125% 15/6/2020) (20/6/2019) 1,789 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection on Rexel SA 7.000% 17/12/2018) (20/6/2019) 4, ,000 95, ,000 75, , , , , , ,000 2,174,000 3,140,000 3,020,000 2,150, , , , ,000 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection on Rexel SA 7.000% 17/12/2018) (20/6/2019) 3,215 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection on Rexel SA 7.000% 17/12/2018) (20/6/2019) 631 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection on Rexel SA 7.000% 17/12/2018) (20/6/2019) 1,209 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection on Sunrise Communications Holdings SA 8.500% 31/12/2018) (20/12/2017) 5,598 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection on Techem GmbH 6.125% 1/10/2019) (20/6/2018) 14,565 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection on Techem GmbH 6.125% 1/10/2019) (20/6/2018) 14,034 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection on TUI AG 2.750% 24/3/2016) (20/6/2019) 1,239 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection on TUI AG 2.750% 24/3/2016) (20/6/2019) 2,312 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection on Virgin Media Finance Plc 5.125% 15/2/2022) (20/9/2018) 30,248 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection on Vougeot Bidco Plc 7.875% 15/7/2020) (20/6/2019) 2,496 Credit Default Swaps (Citigroup Global Markets) (Fund receives default protection on itraxx Europe Crossover Series 20 Version 1 and pays Fixed 5.000%) (20/12/2018) (19,127) Credit Default Swaps (Citigroup Global Markets) (Fund receives default protection on itraxx Europe Crossover Series 21 Version 1 and pays Fixed 5.000%) (20/6/2019) (65,481) Credit Default Swaps (Citigroup Global Markets) (Fund receives default protection on itraxx Europe Crossover Series 21 Version 1 and pays Fixed 5.000%) (20/6/2019) (62,533) Credit Default Swaps (Citigroup Global Markets) (Fund receives default protection on itraxx Europe Crossover Series 21 Version 1 and pays Fixed 5.000%) (20/6/2019) (26,666) Credit Default Swaps (Citigroup Global Markets) (Fund receives default protection on itraxx Europe Crossover Series 21 Version 1 and pays Fixed 5.000%) (20/6/2019) (3,352) Credit Default Swaps (Citigroup Global Markets) (Fund receives default protection on itraxx Europe Crossover Series 21 Version 1 and pays Fixed 5.000%) (20/6/2019) (3,243) Credit Default Swaps (Citigroup Global Markets) (Fund receives default protection on itraxx Europe Crossover Series 21 Version 1 and pays Fixed 5.000%) (20/6/2019) (1,154) Credit Default Swaps (Citigroup Global Markets) (Fund receives default protection on itraxx Europe Crossover Series 21 Version 1 and pays Fixed 5.000%) (20/6/2019) (926) 88 BlackRock Strategic Funds (BSF)

91 BlackRock European Constrained Credit Strategies Fund continued Swaps as at 31 May ,890,000 2,940, ,000 55,000 80, ,000 5,990, , , , , , , , , , ,000 Credit Default Swaps (Citigroup Global Markets) (Fund receives default protection on itraxx Europe Crossover Series 21 Version 1 and pays Fixed 5.000%) (20/6/2019) (28,637) Credit Default Swaps (Citigroup Global Markets) (Fund receives default protection on itraxx Europe Crossover Series 21 Version 1 and pays Fixed 5.000%) (20/6/2019) (21,670) Credit Default Swaps (Citigroup Global Markets) (Fund receives default protection on itraxx Europe Crossover Series 21 Version 1 and pays Fixed 5.000%) (20/6/2019) (1,121) Credit Default Swaps (Citigroup Global Markets) (Fund receives default protection on itraxx Europe Crossover Series 21 Version 1 and pays Fixed 5.000%) (20/6/2019) (402) Credit Default Swaps (Citigroup Global Markets) (Fund receives default protection on itraxx Europe Crossover Series 21 Version 1 and pays Fixed 5.000%) (20/6/2019) (572) Credit Default Swaps (Citigroup Global Markets) (Fund receives default protection on itraxx Europe Crossover Series 21 Version 1 and pays Fixed 5.000%) (20/6/2019) (4,507) Credit Default Swaps (Citigroup Global Markets) (Fund protection on itraxx Europe Series 21 Version 1) (20/6/2019) 34,735 Credit Default Swaps (Credit Suisse) (Fund receives default protection on AXA SA 6.000% 18/6/2013 and pays Fixed 1.000%) (20/6/2018) (36,760) Credit Default Swaps (Credit Suisse) (Fund receives default protection on Dixons Retail Plc 8.750% 3/8/2015 and pays Fixed 5.000%) (20/12/2016) (159,362) Credit Default Swaps (Credit Suisse) (Fund receives default protection on Finmeccanica Finance SA/ Old 5.750% 12/12/2018 and pays Fixed 5.000%) (20/6/2018) (7,513) Credit Default Swaps (Credit Suisse) (Fund receives default protection on Finmeccanica Finance SA/ Old 5.750% 12/12/2018 and pays Fixed 5.000%) (20/6/2018) (19,057) Credit Default Swaps (Credit Suisse) (Fund receives default protection on Iberdrola Finanzas SAU 3.500% 22/6/2015 and pays Fixed 1.000%) (20/6/2019) (2,006) Credit Default Swaps (Credit Suisse) (Fund receives default protection on Marks & Spencer Plc 5.625% 24/3/2014 and pays Fixed 1.000%) (20/3/2018) (19,269) Credit Default Swaps (Credit Suisse) (Fund receives default protection on St-Gobain Nederland BV 5.000% 25/4/2014 and pays Fixed 1.000%) (20/9/2018) (34,194) Credit Default Swaps (Credit Suisse) (Fund receives default protection on Stena AB 6.125% 1/2/2017 and pays Fixed 5.000%) (20/12/2017) (14,518) Credit Default Swaps (Credit Suisse) (Fund receives default protection on Unitymedia KabelBW GmbH 9.625% 1/12/2019 and pays Fixed 5.000%) (20/9/2018) (26,646) Credit Default Swaps (Credit Suisse) (Fund receives Fixed 1.000% and provides default protection on ArcelorMittal 6.125% 1/6/2018) (20/3/2021) 1, , , , , , , , ,000 95, , , , , , , , ,000 4,200,000 Credit Default Swaps (Credit Suisse) (Fund receives Fixed 1.000% and provides default protection on Aviva Plc 9.500% 20/6/2016) (20/6/2018) 35,223 Credit Default Swaps (Credit Suisse) (Fund receives Fixed 1.000% and provides default protection on Ladbrokes Group Finance Plc 7.625% 5/3/2017) (20/3/2019) 6,955 Credit Default Swaps (Credit Suisse) (Fund receives Fixed 1.000% and provides default protection on Ladbrokes Group Finance Plc 7.625% 5/3/2017) (20/3/2019) 5,018 Credit Default Swaps (Credit Suisse) (Fund receives Fixed 1.000% and provides default protection on RWE AG 5.750% 14/2/2033) (20/6/2019) 2,140 Credit Default Swaps (Credit Suisse) (Fund receives Fixed 1.000% and provides default protection on ThyssenKrupp AG 4.375% 18/3/2015) (20/12/2017) 35,918 Credit Default Swaps (Credit Suisse) (Fund receives Fixed 1.000% and provides default protection on ThyssenKrupp AG 4.375% 18/3/2015) (20/3/2018) 23,120 Credit Default Swaps (Credit Suisse) (Fund receives Fixed 1.000% and provides default protection on ThyssenKrupp AG 4.375% 18/3/2015) (20/3/2018) 5,255 Credit Default Swaps (Credit Suisse) (Fund receives Fixed 5.000% and provides default protection on Astaldi SpA 7.125% 1/12/2020) (20/6/2019) 5,072 Credit Default Swaps (Credit Suisse) (Fund receives Fixed 5.000% and provides default protection on Astaldi SpA 7.125% 1/12/2020) (20/6/2019) 1,380 Credit Default Swaps (Credit Suisse) (Fund receives Fixed 5.000% and provides default protection on Astaldi SpA 7.125% 1/12/2020) (20/6/2019) 1,379 Credit Default Swaps (Credit Suisse) (Fund receives Fixed 5.000% and provides default protection on CIR-Compagnie Industriali Riunite SpA 5.750% 16/12/2024) (20/3/2019) 4,956 Credit Default Swaps (Credit Suisse) (Fund receives Fixed 5.000% and provides default protection on CIR-Compagnie Industriali Riunite SpA 5.750% 16/12/2024) (20/6/2019) 5,478 Credit Default Swaps (Credit Suisse) (Fund receives Fixed 5.000% and provides default protection on CIR-Compagnie Industriali Riunite SpA 5.750% 16/12/2024) (20/6/2019) 3,280 Credit Default Swaps (Credit Suisse) (Fund receives Fixed 5.000% and provides default protection on CIR-Compagnie Industriali Riunite SpA 5.750% 16/12/2024) (20/6/2019) 1,490 Credit Default Swaps (Credit Suisse) (Fund receives Fixed 5.000% and provides default protection on CIR-Compagnie Industriali Riunite SpA 5.750% 16/12/2024) (20/6/2019) 2,347 Credit Default Swaps (Credit Suisse) (Fund receives Fixed 5.000% and provides default protection on CIR-Compagnie Industriali Riunite SpA 5.750% 16/12/2024) (20/12/2018) 78,149 Credit Default Swaps (Credit Suisse) (Fund receives Fixed 5.000% and provides default protection on CNH Industrial Finance Europe SA 6.250% 9/3/2018) (20/3/2019) (2,572) Credit Default Swaps (Credit Suisse) (Fund receives Fixed 5.000% and provides default protection on Markit CDX Series 21 Version 1) (20/12/2018) 16,932 The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 89

92 BlackRock European Constrained Credit Strategies Fund continued Swaps as at 31 May , , , , , , , , , , , , ,000 50, , ,000 11,700,000 1,310, ,000 8,400,000 Credit Default Swaps (Credit Suisse) (Fund receives Fixed 5.000% and provides default protection on Metsa Board OYJ 4.000% 13/3/2019) (20/3/2019) 16,668 Credit Default Swaps (Credit Suisse) (Fund receives Fixed 5.000% and provides default protection on Metsa Board OYJ 4.000% 13/3/2019) (20/3/2019) 21,120 Credit Default Swaps (Credit Suisse) (Fund receives Fixed 5.000% and provides default protection on Rexel SA 5.125% 15/6/2020) (20/6/2019) 6,734 Credit Default Swaps (Credit Suisse) (Fund receives Fixed 5.000% and provides default protection on Rexel SA 7.000% 17/12/2018) (20/6/2019) 1,575 Credit Default Swaps (Credit Suisse) (Fund receives Fixed 5.000% and provides default protection on Techem GmbH 6.125% 1/10/2019) (20/6/2018) 13,976 Credit Default Swaps (Credit Suisse) (Fund receives Fixed 5.000% and provides default protection on Techem GmbH 6.125% 1/10/2019) (20/6/2018) 31,258 Credit Default Swaps (Credit Suisse) (Fund receives Fixed 5.000% and provides default protection on Techem GmbH 6.125% 1/10/2019) (20/9/2018) 7,540 Credit Default Swaps (Credit Suisse) (Fund receives Fixed 5.000% and provides default protection on Techem GmbH 6.125% 1/10/2019) (20/9/2018) 2,463 Credit Default Swaps (Credit Suisse) (Fund receives Fixed 5.000% and provides default protection on Techem GmbH 6.125% 1/10/2019) (20/12/2018) 2,655 Credit Default Swaps (Credit Suisse) (Fund receives Fixed 5.000% and provides default protection on TUI AG 2.750% 24/3/2016) (20/6/2019) 1,203 Credit Default Swaps (Credit Suisse) (Fund receives Fixed 5.000% and provides default protection on TUI AG 2.750% 24/3/2016) (20/6/2019) 1,203 Credit Default Swaps (Credit Suisse) (Fund receives Fixed 5.000% and provides default protection on TUI AG 2.750% 24/3/2016) (20/6/2019) 730 Credit Default Swaps (Credit Suisse) (Fund receives Fixed 5.000% and provides default protection on TUI AG 2.750% 24/3/2016) (20/6/2019) 1,224 Credit Default Swaps (Credit Suisse) (Fund receives Fixed 5.000% and provides default protection on Unitymedia KabelBW GmbH 9.625% 1/12/2019) (20/12/2017) 2,411 Credit Default Swaps (Credit Suisse) (Fund receives Fixed 5.000% and provides default protection on Vougeot Bidco Plc 7.875% 15/7/2020) (20/6/2019) 2,663 Credit Default Swaps (Credit Suisse) (Fund receives Fixed 5.000% and provides default protection on Vougeot Bidco Plc 7.875% 15/7/2020) (20/6/2019) 2,663 Credit Default Swaps (Deutsche Asset Management Life) (Fund receives default protection on itraxx Europe Senior Financials Series 19 Version 1 and pays Fixed 1.000%) (20/6/2018) (387,959) Credit Default Swaps (Deutsche Asset Management Life) (Fund receives default protection on Next Plc 5.375% 26/10/2021 and pays Fixed 1.000%) (20/12/2018) (18,235) Credit Default Swaps (Deutsche Asset Management Life) (Fund receives default protection on Stena AB 6.125% 1/2/2017 and pays Fixed 5.000%) (20/12/2017) (59,320) Credit Default Swaps (Deutsche Asset Management Life) (Fund receives Fixed 5.000% and provides default protection on itraxx Europe Sub Financials Series 19 Version 1) (20/6/2018) 282, , , , ,000 1,115, ,000 2,090, , , , ,437 86,400 20, , , ,000 Credit Default Swaps (Deutsche Asset Management Life) (Fund receives Fixed 5.000% and provides default protection on itraxx Europe Sub Financials Series 20 Version 1) (20/12/2018) 7,029 Credit Default Swaps (Deutsche Asset Management Life) (Fund receives Fixed 5.000% and provides default protection on Portugal Telecom International Finance BV 4.375% 24/3/2017) (20/12/2017) 10,605 Credit Default Swaps (Deutsche Bank) (Fund receives default protection on GDF Suez 5.125% 19/2/2018 and pays Fixed 1.000%) (20/6/2019) (371) Credit Default Swaps (Deutsche Bank) (Fund receives default protection on Ireland Government Bond 4.500% 18/4/2020 and pays Fixed 1.000%) (20/3/2018) (15,189) Credit Default Swaps (Deutsche Bank) (Fund receives default protection on itraxx Europe Crossover Series 21 Version 1 and pays Fixed 5.000%) (20/6/2019) (23,638) Credit Default Swaps (Deutsche Bank) (Fund receives default protection on itraxx Europe Crossover Series 21 Version 1 and pays Fixed 5.000%) (20/6/2019) (4,454) Credit Default Swaps (Deutsche Bank) (Fund receives default protection on itraxx Europe Crossover Series 21 Version 1 and pays Fixed 5.000%) (20/6/2019) (17,400) Credit Default Swaps (Deutsche Bank) (Fund receives default protection on itraxx Europe Senior Financials Series 19 Version 1 and pays Fixed 1.000%) (20/6/2018) (8,247) Credit Default Swaps (Deutsche Bank) (Fund receives default protection on Portugal Obrigacoes do Tesouro OT 5.450% 23/9/2013 and pays Fixed 1.000%) (20/12/2017) (17,857) Credit Default Swaps (Deutsche Bank) (Fund receives default protection on Portugal Obrigacoes do Tesouro OT 5.450% 23/9/2013 and pays Fixed 1.000%) (20/12/2015) (33,689) Credit Default Swaps (Deutsche Bank) (Fund receives default protection on Unitymedia KabelBW GmbH 9.625% 1/12/2019 and pays Fixed 5.000%) (20/9/2018) (26,404) Credit Default Swaps (Deutsche Bank) (Fund protection on Astaldi SpA 7.125% 1/12/2020) (20/6/2019) 1,063 Credit Default Swaps (Deutsche Bank) (Fund protection on Portugal Telecom International Finance BV 4.375% 24/3/2017) (20/9/2017) 3,872 Credit Default Swaps (Deutsche Bank) (Fund protection on Rexel SA 5.125% 15/6/2020) (20/6/2019) 756 Credit Default Swaps (Deutsche Bank) (Fund protection on Techem GmbH 6.125% 1/10/2019) (20/6/2018) 34,914 Credit Default Swaps (Goldman Sachs) (Fund receives default protection on Finmeccanica Finance SA/Old 5.750% 12/12/2018 and pays Fixed 5.000%) (20/12/2018) (31,255) 90 BlackRock Strategic Funds (BSF)

93 BlackRock European Constrained Credit Strategies Fund continued Swaps as at 31 May ,300, , , , , , , , , , ,000 2,300, ,000 1,960, ,000 Credit Default Swaps (Goldman Sachs) (Fund receives default protection on Marks & Spencer Plc 5.625% 24/3/2014 and pays Fixed 1.000%) (20/6/2018) (113,207) Credit Default Swaps (Goldman Sachs) (Fund receives default protection on Marks & Spencer Plc 6.125% 2/12/2019 and pays Fixed 1.000%) (20/12/2018) (3,531) Credit Default Swaps (Goldman Sachs) (Fund protection on ThyssenKrupp AG 4.375% 18/3/2015) (20/12/2017) 18,410 Credit Default Swaps (Goldman Sachs) (Fund protection on Astaldi SpA 7.125% 1/12/2020) (20/6/2019) 1,941 Credit Default Swaps (Goldman Sachs) (Fund protection on CIR-Compagnie Industriali Riunite SpA 5.750% 16/12/2024) (20/3/2019) 19,395 Credit Default Swaps (Goldman Sachs) (Fund protection on Rexel SA 7.000% 17/12/2018) (20/6/2019) 3,301 Credit Default Swaps (Goldman Sachs) (Fund protection on Unitymedia KabelBW GmbH 9.625% 1/12/2019) (20/12/2017) 39,982 Credit Default Swaps (Goldman Sachs) (Fund protection on Vougeot Bidco Plc 7.875% 15/7/2020) (20/6/2019) 3,744 Credit Default Swaps (JP Morgan Chase Bank (Depository Cle) (Fund receives default protection on British Airways Plc and pays Fixed 5.000%) (20/12/2018) (21,109) Credit Default Swaps (JP Morgan Chase Bank (Depository Cle) (Fund receives default protection on Caja de Ahorros y Pensiones de Barcelona 3.940% 28/2/2019 and pays Fixed 3.000%) (20/12/2015) (20,032) Credit Default Swaps (JP Morgan Chase Bank (Depository Cle) (Fund receives default protection on Finmeccanica Finance SA/Old 5.750% 12/12/2018 and pays Fixed 5.000%) (20/12/2017) (32,830) Credit Default Swaps (JP Morgan Chase Bank (Depository Cle) (Fund receives default protection on Finmeccanica Finance SA/Old 5.750% 12/12/2018 and pays Fixed 5.000%) (20/3/2016) 12,028 Credit Default Swaps (JP Morgan Chase Bank (Depository Cle) (Fund receives Fixed 1.000% and provides default protection on ThyssenKrupp AG 4.375% 18/3/2015) (20/12/2017) 16,937 Credit Default Swaps (JP Morgan Chase Bank (Depository Cle) (Fund receives Fixed 5.000% and provides default protection on Finmeccanica Finance SA/Old 5.750% 12/12/2018) (20/3/2018) 122,157 Credit Default Swaps (JP Morgan Chase Bank (Depository Cle) (Fund receives Fixed 5.000% and provides default protection on Portugal Telecom International Finance BV 4.375% 24/3/2017) (20/12/2017) 46,764 1,900, , , ,000 1,770, ,000 1,835, , , , ,000 1,080, ,000 4,396, , , ,000 Credit Default Swaps (JP Morgan Securities Inc) (Fund receives default protection on Portugal Obrigacoes do Tesouro OT 5.450% 23/9/2013 and pays Fixed 1.000%) (20/6/2015) (123,515) Credit Default Swaps (JP Morgan) (Fund receives default protection on Banco Espirito Santo SA 0.454% 19/1/2015 and pays Fixed 5.000%) (20/6/2018) (56,180) Credit Default Swaps (JP Morgan) (Fund receives default protection on Enel SpA 5.250% 20/6/2017 and pays Fixed 1.000%) (20/6/2019) (1,062) Credit Default Swaps (JP Morgan) (Fund receives default protection on Finmeccanica Finance SA/ Old 5.750% 12/12/2018 and pays Fixed 5.000%) (20/6/2018) (4,141) Credit Default Swaps (JP Morgan) (Fund receives default protection on France Government Bond OAT 4.250% 25/4/2019 and pays Fixed 0.250%) (20/6/2018) (17,456) Credit Default Swaps (JP Morgan) (Fund receives default protection on Gas Natural Capital Markets SA 4.500% 27/1/2020 and pays Fixed 1.000%) (20/6/2019) (2,904) Credit Default Swaps (JP Morgan) (Fund receives default protection on Ireland Government Bond 4.500% 18/4/2020 and pays Fixed 1.000%) (20/3/2018) (72,966) Credit Default Swaps (JP Morgan) (Fund receives default protection on Portugal Obrigacoes do Tesouro OT 5.450% 23/9/2013 and pays Fixed 1.000%) (20/12/2017) (95,318) Credit Default Swaps (JP Morgan) (Fund receives default protection on Portugal Obrigacoes do Tesouro OT 5.450% 23/9/2013 and pays Fixed 1.000%) (20/6/2015) (15,682) Credit Default Swaps (JP Morgan) (Fund receives default protection on Portugal Obrigacoes do Tesouro OT 5.450% 23/9/2013 and pays Fixed 1.000%) (20/12/2015) (9,008) Credit Default Swaps (JP Morgan) (Fund receives default protection on Portugal Obrigacoes do Tesouro OT 5.450% 23/9/2013 and pays Fixed 1.000%) (20/6/2015) (16,242) Credit Default Swaps (JP Morgan) (Fund receives Fixed 0.250% and provides default protection on France Government Bond OAT 4.250% 25/4/2019) (20/6/2023) 26,951 Credit Default Swaps (JP Morgan) (Fund receives Fixed 1.000% and provides default protection on E.ON International Finance BV 6.375% 29/5/2017) (20/6/2019) 3,490 Credit Default Swaps (JP Morgan) (Fund receives Fixed 1.000% and provides default protection on itraxx Europe Senior Financials Series 20 Version 1) (20/12/2018) 79,230 Credit Default Swaps (JP Morgan) (Fund receives Fixed 1.000% and provides default protection on RWE AG 5.750% 14/2/2033) (20/6/2019) 3,176 Credit Default Swaps (JP Morgan) (Fund receives Fixed 5.000% and provides default protection on Portugal Telecom International Finance BV 4.375% 24/3/2017) (20/12/2017) 86,960 Credit Default Swaps (JP Morgan) (Fund receives Fixed 5.000% and provides default protection on TUI AG 2.750% 24/3/2016) (20/6/2019) 717 The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 91

94 BlackRock European Constrained Credit Strategies Fund continued Swaps as at 31 May , ,000 GBP 2,592,000 GBP 16,520,000 52, ,981 4,038 15,360 15, , , ,982 56,789 4,038 1, ,112 Credit Default Swaps (JP Morgan) (Fund receives Fixed 5.000% and provides default protection on TUI AG 2.750% 24/3/2016) (20/6/2019) 610 Credit Default Swaps (Morgan Stanley) (Fund receives default protection on Dixons Retail Plc 8.750% 3/8/2015 and pays Fixed 5.000%) (20/12/2016) (41,267) Interest Rate Swap (Barclays Bank) (Fund receives Floating GBP 6 Month LIBOR and pays Fixed 2.823%) (7/4/2024) (51,510) Interest Rate Swap (JP Morgan) (Fund receives Floating GBP 6 Month LIBOR and pays Fixed 2.775%) (5/3/2024) (260,944) Total Return Swap (Bank of America International Ltd) (Fund receives 3 Month LIBOR and pays Banco Santander SA) (9/4/2015) (17,577) Total Return Swap (Bank of America International Ltd) (Fund receives 3 Month LIBOR and pays Telecom Italia SpA) (10/4/2015) (3,974) Total Return Swap (Bank of America International Ltd) (Fund receives 3 Month LIBOR and pays Volkswagen AG) (22/5/2015) (19,180) Total Return Swap (Bank of America) (Fund receives 3 Month LIBOR and pays ArcelorMittal) (23/1/2015) 21,201 Total Return Swap (Bank of America) (Fund receives 3 Month LIBOR and pays ArcelorMittal) (23/1/2015) 17,592 Total Return Swap (Bank of America) (Fund receives 3 Month LIBOR and pays Fonciere Des Regions) (20/2/2015) (776) Total Return Swap (Bank of America) (Fund receives 3 Month LIBOR and pays Telecom Italia SpA) (22/4/2015) (884) Total Return Swap (Bank of America) (Fund receives 3 Month LIBOR and pays Telecom Italia SpA) (22/4/2015) (6,862) Total Return Swap (Bank of America) (Fund receives 3 Month LIBOR and pays Telecom Italia SpA) (30/4/2015) 400 Total Return Swap (Bank of America) (Fund receives 3 Month LIBOR and pays UniCredit SpA) (21/1/2015) (26,793) Total Return Swap (Bank of America) (Fund receives 3 Month LIBOR and pays Volkswagen AG) (22/5/2015) (16,152) Total Return Swap (Barclays Bank) (Fund receives 3 Month IBOR and pays Fonciere Des Regions) (14/11/2014) (11,152) Total Return Swap (Barclays Bank) (Fund receives 3 Month IBOR and pays Fonciere Des Regions) (13/11/2014) (5,356) Total Return Swap (Barclays Bank) (Fund receives 3 Month LIBOR and pays Fonciere Des Regions) (11/2/2015) (594) Total Return Swap (BNP Paribas) (Fund receives 3 Month LIBOR and pays Fonciere Des Regions) (15/4/2015) (676) Total Return Swap (BNP Paribas) (Fund receives 3 Month LIBOR and pays Fonciere Des Regions) (29/4/2015) (58) Total Return Swap (BNP Paribas) (Fund receives 3 Month LIBOR and pays Telecom Italia SpA) (20/1/2015) (4,768) 143, ,320 35,861 1,705 1,418 2, , ,922 20, ,186 20,736 20, , , , , ,000 GBP 350, , , , ,000 Total Return Swap (BNP Paribas) (Fund receives 3 Month LIBOR and pays Telecom Italia SpA) (30/3/2015) (6,100) Total Return Swap (BNP Paribas) (Fund receives 3 Month LIBOR and pays Telecom Italia SpA) (7/4/2015) (1,809) Total Return Swap (BNP Paribas) (Fund receives 3 Month LIBOR and pays Telecom Italia SpA) (7/4/2015) (956) Total Return Swap (BNP Paribas) (Fund receives 3 Month LIBOR and pays Volkswagen AG) (30/1/2015) (9,804) Total Return Swap (BNP Paribas) (Fund receives 3 Month LIBOR and pays Volkswagen AG) (30/1/2015) (5,034) Total Return Swap (BNP Paribas) (Fund receives 3 Month LIBOR and pays Volkswagen AG) (2/2/2015) (14,484) Total Return Swap (Citibank) (Fund receives 3 Month LIBOR and pays ) (4/5/2015) 6,931 Total Return Swap (Citibank) (Fund receives 3 Month LIBOR and pays ) (7/5/2015) 6,978 Total Return Swap (Citibank) (Fund receives 3 Month LIBOR and pays ArcelorMittal) (10/2/2015) 19,411 Total Return Swap (Citibank) (Fund receives 3 Month LIBOR and pays Telecom Italia SpA) (9/1/2015) (74,621) Total Return Swap (Citigroup Global Markets) (Fund receives 3 Month LIBOR and pays ArcelorMittal) (10/2/2015) 21,847 Total Return Swap (Citigroup Global Markets) (Fund receives 3 Month LIBOR and pays ArcelorMittal) (10/2/2015) 16,975 Total Return Swap (Citigroup Global Markets) (Fund receives 3 Month LIBOR and pays Telecom Italia SpA) (14/1/2015) (40,150) Total Return Swap (Citigroup Global Markets) (Fund receives 3 Month LIBOR and pays Telecom Italia SpA) (14/1/2015) (20,075) Total Return Swap (Credit Suisse) (Fund receives 1 Month LIBOR and pays Barclays Bank Plc 4.875% (Perpetual)) (15/5/2015) (2,762) Total Return Swap (Credit Suisse) (Fund receives 1 Month LIBOR and pays Barclays Bank Plc 4.875% (Perpetual)) (16/5/2015) (519) Total Return Swap (Credit Suisse) (Fund receives 1 Month LIBOR and pays Barclays Bank Plc 4.875% (Perpetual)) (16/5/2015) (1,558) Total Return Swap (Credit Suisse) (Fund receives 1 Month LIBOR and pays Equiniti Newco 2 Plc 7.125% 15/12/2018) (30/9/2014) (13,384) Total Return Swap (Credit Suisse) (Fund receives 1 Month LIBOR and pays Italy Buoni Poliennali Del Tesoro 3.750% 1/8/2021) (29/8/2014) (51,251) Total Return Swap (Credit Suisse) (Fund receives 1 Month LIBOR and pays Manutencoop Facility 8.500% 1/8/2020) (30/9/2014) (10,759) Total Return Swap (Credit Suisse) (Fund receives 1 Month LIBOR and pays Manutencoop Facility 8.500% 1/8/2020) (30/9/2014) (10,759) Total Return Swap (Credit Suisse) (Fund receives 1 Month LIBOR and pays Manutencoop Facility 8.500% 1/8/2020) (30/9/2014) (10,259) 92 BlackRock Strategic Funds (BSF)

95 BlackRock European Constrained Credit Strategies Fund continued Swaps as at 31 May , ,000 1,140,000 1,050,000 GBP 200, ,000 6,310, ,000 1,010,000 4,808,726 3,750, , , ,982 5,490 64,317 3,000 8,077 Total Return Swap (Credit Suisse) (Fund receives 1 Month LIBOR and pays Manutencoop Facility 8.500% 1/8/2020) (30/9/2014) (19,518) Total Return Swap (Credit Suisse) (Fund receives 1 Month LIBOR and pays Norddeutsche Landesbank Girozentrale 6.250% 10/4/2024) (31/3/2015) (3,467) Total Return Swap (Credit Suisse) (Fund receives 1 Month LIBOR and pays Peugeot SA 7.375% 6/3/2018) (29/5/2019) (131,030) Total Return Swap (Credit Suisse) (Fund receives 1 Month LIBOR and pays Portugal Obrigacoes do Tesouro OT 4.350% 16/10/2017) (30/4/2015) (93,703) Total Return Swap (Credit Suisse) (Fund receives 1 Month LIBOR and pays Priory Group No 3 Plc 8.875% 15/2/2019) (31/10/2014) (11,327) Total Return Swap (Credit Suisse) (Fund receives 1 Month LIBOR and pays Spain Government Bond 4.100% 30/7/2018) (29/8/2014) (72,117) Total Return Swap (Credit Suisse) (Fund receives 1 Month LIBOR and pays Spain Government Bond 4.100% 30/7/2018) (31/10/2014) (373,032) Total Return Swap (Credit Suisse) (Fund receives 1 Month LIBOR and pays UniCredit SpA 8.000% (Perpetual)) (31/3/2015) (3,465) Total Return Swap (Credit Suisse) (Fund receives 1 Month LIBOT and pays Spain Government Bond 4.100% 30/7/2018) (30/4/2015) (103,705) Total Return Swap (Deutsche Bank) (Fund receives Arianna SPV Srl and pays 3 Month LIBOR) (20/7/2014) 78,382 Total Return Swap (Deutsche Bank) (Fund receives St Pauls CLO 1.849% 25/4/2028 and pays 3 Month LIBOR) (27/6/2014) 12,330 Total Return Swap (JP Morgan) (Fund receives 3 Month IBOR and pays Telecom Italia SpA) (8/11/2014) (230,638) Total Return Swap (JP Morgan) (Fund receives 3 Month LIBOR and pays Fonciere Des Regions) (17/2/2015) (1,219) Total Return Swap (JP Morgan) (Fund receives 3 Month LIBOR and pays Fonciere Des Regions) (17/2/2015) (609) Total Return Swap (JP Morgan) (Fund receives 3 Month LIBOR and pays Fonciere Des Regions) (17/2/2015) (119) Total Return Swap (JP Morgan) (Fund receives 3 Month LIBOR and pays Telecom Italia SpA) (20/2/2015) (7,479) Total Return Swap (JP Morgan) (Fund receives 3 Month LIBOR and pays Telecom Italia SpA) (20/2/2015) (3,250) Total Return Swap (JP Morgan) (Fund receives 3 Month LIBOR and pays Volkswagen AG) (2/4/2015) (23,332) Total Return Swap (JP Morgan) (Fund receives 3 Month LIBOR and pays Volkswagen AG) (2/4/2015) 1,252 Total Return Swap (JP Morgan) (Fund receives 3 Month LIBOR and pays Volkswagen AG) (2/4/2015) (10,350) Total Return Swap (JP Morgan) (Fund receives 3 Month LIBOR and pays Volkswagen AG) (2/4/2015) (32,712) 821,000 Total Return Swap (JP Morgan) (Fund receives Fixed 0.000% and pays Bundesobligation 0.750% 24/2/2017) (4/3/2015) (3,840) 1,380,000 Total Return Swap (JP Morgan) (Fund receives Fixed 0.000% and pays Italy Buoni Poliennali Del Tesoro 4.250% 1/2/2019) (15/5/2015) 3,002 1,410,000 Total Return Swap (JP Morgan) (Fund receives Fixed 0.050% and pays Italy Buoni Poliennali Del Tesoro 3.500% 1/12/2018) (15/5/2015) 3, ,000 Total Return Swap (JP Morgan) (Fund receives Fixed 0.050% and pays Italy Buoni Poliennali Del Tesoro 3.750% 1/3/2021) (13/10/2014) (61,887) 1,320,000 Total Return Swap (JP Morgan) (Fund receives Fixed 0.070% and pays Spain Government Bond 4.600% 30/7/2019) (15/5/2015) 1,604 1,250,000 Total Return Swap (JP Morgan) (Fund receives Fixed 0.080% and pays Spain Government Bond 4.300% 31/10/2019) (15/5/2015) ,000 Total Return Swap (JP Morgan) (Fund receives Fixed 0.100% and pays Bundesrepublik Deutschland 2.500% 4/1/2021) (4/3/2015) (6,254) 680,000 Total Return Swap (JP Morgan) (Fund receives Fixed 0.150% and pays Spain Government Bond 4.100% 30/7/2018) (1/10/2014) (69,737) 890,000 Total Return Swap (JP Morgan) (Fund receives Fixed 0.170% and pays Spain Government Bond 3.750% 31/10/2018) (9/2/2015) (43,071) 720,000 Total Return Swap (JP Morgan) (Fund receives Fixed 0.200% and pays Ireland Government Bond 5.500% 18/10/2017) (17/9/2014) (24,993) 860,000 Total Return Swap (JP Morgan) (Fund receives Fixed 0.200% and pays Spain Government Bond 2.750% 30/4/2019) (4/3/2015) (2,366) 795,000 Total Return Swap (JP Morgan) (Fund receives Fixed 0.350% and pays Portugal Obrigacoes do Tesouro OT 4.750% 14/6/2019) (2/10/2014) (175,696) 400,000 Total Return Swap (JP Morgan) (Fund receives Fixed 0.400% and pays Norddeutsche Landesbank Girozentrale 6.250% 10/4/2024) (11/5/2015) (4,042) 160,000 Total Return Swap (JP Morgan) (Fund receives Fixed 0.400% and pays Portugal Obrigacoes do Tesouro OT 4.750% 14/6/2019) (3/11/2014) (32,587) GBP 18,360,000 Total Return Swap (JP Morgan) (Fund receives Markit iboxx Index and pays 3 Month LIBOR) (20/6/2014) 486,458 GBP 2,880,000 Total Return Swap (JP Morgan) (Fund receives Markit iboxx Index and pays 3 Month LIBOR) (20/9/2014) 72,942 GBP 1,379,000 Total Return Swap (JP Morgan) (Fund receives Marks & Spencer Plc 4.750% 12/6/2025 and pays Fixed 0.700%) (13/1/2015) 76,304 GBP 1,105,000 Total Return Swap (JP Morgan) (Fund receives Next Plc 4.375% 2/10/2026 and pays Fixed 0.700%) (13/1/2015) 65,630 4,790,000 Total Return Swap (JP Morgan) (Fund receives Spain Government Bond 5.400% 31/1/2023 and pays Fixed 0.250%) (9/2/2015) 232,153 1,765,000 Total Return Swap (JP Morgan) (Fund receives UniCredit SpA 3.250% 14/1/2021 and pays Fixed 0.700%) (13/1/2015) 145,051 ( underlying exposure 304,726,543) (3,716,488) Note: The total market value of (1,921,443) is included in the Statement of Net Assets (see Note 2(d)). The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 93

96 BlackRock European Constrained Credit Strategies Fund continued Open Exchange Traded Futures Contracts as at 31 May 2014 Number of Contracts Contract/ Expiration date Underlying exposure (228) O STOXX Bank Index June ,741,920 (31,239) (124) German Euro BOBL June ,394,880 (165,710) (115) German Euro Bund June ,531,883 (432,330) (36) German Euro Schatz June ,612,348 (2,670) (76) UK Long Gilt Bond September ,369,129 (67,273) (17) US Bond September ,784,073 (10,141) (90) US Treasury 10 Year Note September ,563,702 (21,167) (11) US Ultra Bond September ,009,612 (11,735) Total 74,007,547 (742,265) Note: The net unrealised depreciation of attributed to these transactions is included in the Statement of Net Assets (see Note 2(d)). Purchased Put Options as at 31 May 2014 Number of contracts subject to Put Issuer Underlying exposure Market 63 O STOXX 50 Index Put Option strike price 3, expiring on 20/6/ ,640 (21,357) 10, O STOXX 50 Index Put Option strike price 3, expiring on 20/6/ ,403 (52,013) 16,506 Total Purchased Put Options 1,170,043 (73,370) 26,901 Note: Purchased Put Options are included in the Statement of Net Assets (see Note 2(d)). Where no counterparty is shown the Purchased Put Option is exchange traded. Open Forward Foreign Exchange Transactions as at 31 May 2014 Purchases Sales Date CHF 70,000 57,635 6/12/2014 (296) 706,236 CHF 860,000 6/12/2014 1,783 48,679 GBP 40,000 6/12/2014 (495) 201,975 GBP 165,000 6/12/2014 (866) 871,063 GBP 720,000 6/12/2014 (14,061) 982,524 GBP 815,000 6/12/2014 (19,388) 13,235,829 GBP 11,050,000 6/12/2014 (348,375) 11,451 NOK 95,000 6/12/2014 (202) 44,197 NOK 365,000 6/12/2014 (574) 47,397 NOK 390,000 6/12/2014 (441) 51,937 NOK 430,000 6/12/2014 (807) 37,136 SEK 330,000 6/12/ , ,000 6/12/2014 (10,167) 602, ,000 6/12/2014 (6,482) 22,320,995 30,980,000 6/12/2014 (424,619) 886,010 1,220,000 6/12/2014 (9,717) 219, ,000 6/12/2014 (862) GBP 400, ,259 6/12/2014 4,477 GBP 2,870,000 3,475,167 6/12/ ,038 GBP 2,850,000 3,431,721 6/12/ ,897 GBP 220, ,759 6/12/2014 (1,304) 820, ,926 6/12/ ,120 3,465,000 2,514,695 6/12/ ,319 2,050,000 1,503,104 6/12/2014 2, , ,906 6/12/2014 (52) 20,000 14,647 6/12/ Net unrealised depreciation ( underlying exposure 54,361,797) (662,204) Note: The net unrealised depreciation attributed to these transactions is included in the Statement of Net Assets (see Note 2(d)). Bank of America N.A., Barclays Bank Plc, BNP Paribas S.A., Citibank N.A. London, Deutsche Bank AG London, HSBC Bank Plc, State Street Bank London, UBS AG London are the counterparties to these Open Forward Foreign Exchange Transactions. Sector Breakdown as at 31 May 2014 % of Net Assets* Financial Government Communications Consumer, Cyclical Asset Backed Securities 6.22 Funds 5.91 Industrial 4.75 Basic Materials 2.87 Utilities 1.76 Consumer, Non-cyclical 1.31 Energy 1.21 Mortgage Securities 0.54 Other Net Liabilities (5.45) * Based on the market value of the Portfolio of Investments except for Contract For Difference, which are based on the commitment (where applicable). 94 BlackRock Strategic Funds (BSF)

97 BlackRock European Credit Strategies Fund Portfolio of Investments as at 31 May 2014 Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding Market % of Net Assets Holding Market % of Net Assets COMMON / PREFERRED STOCKS (SHARES) Belgium 11,249 Euronav NV 104, , Bermuda 101,563 Avance Gas Holding Ltd 1,601, ,045 Golden Ocean Group Ltd 567, ,168, Germany 30,223 Volkswagen AG (Pref) 5,901, ,901, Greece 1,192,657 Intralot SA-Integrated Lottery Systems & Services 2,492, ,492, Ireland 180,999 Smurfit Kappa Group Plc 3,179, ,179, Italy 545,333 Astaldi SpA 4,305, ,735,926 Telecom Italia SpA 4,340, ,645, Luxembourg 90,600 ArcelorMittal 1,017, ,057,000 ArcelorMittal (Pref) 18,004, ,021, Marshall Islands 186,553 Tanker Investments Ltd 1,476, ,476, Netherlands 384,222 Ziggo NV 13,294, ,294, Spain 55,984 Indra Sistemas SA 738, ,188 International Consolidated Airlines Group SA 4,667, ,667 Pescanova SA 1 5,406, Sweden 317,700 SAS AB 459, , United Kingdom 677,559 Balfour Beatty Plc 1,949, ,691,460 Barclays Plc 5,109, ,286,514 Ladbrokes Plc 6,173, ,748 Royal Bank of Scotland Group Plc (Pref M) 4,651, ,215 Royal Bank of Scotland Group Plc (Pref R) 212, United Kingdom continued 322,823 Royal Bank of Scotland Group Plc (Pref S) 5,810, ,221 WM Morrison Supermarkets Plc 1,499, ,406, United States 172,005 RBS Capital Funding Trust V (Pref E) 2,999, ,429 RBS Capital Funding Trust VII (Pref G) 13,753, ,752, Total Common / Preferred Stocks (Shares) 104,309, BONDS Bermuda 15,200,000 Golden Ocean Group Ltd 3.07% 30/1/ ,732, ,732, Cayman Islands 1,750,000 Magnetite VIII Ltd 15/4/2026 (Zero Coupon) 1,284, ,284, France GBP 6,600,000 BPCE SA 5.25% 16/4/2029 8,250, ,600,000 Credit Agricole SA FRN (Perpetual) 6,933, ,425,000 Credit Agricole SA/London '144A' 3.875% 15/4/ ,425, ,900,000 Electricite de France FRN (Perpetual) 6,278, GBP 4,000,000 Electricite de France FRN (Perpetual) 5,101, ,583,800 Fonciere Des Regions 0.875% 1/4/2019 3,285, ,905,000 Kerneos Tech Group SAS Reg 5.75% 1/3/2021 1,959, ,000 Numericable Group SA Reg 5.375% 15/5/ , ,197, Germany 8,950,000 Bayerische Landesbank FRN 7/2/2019 8,311, ,600,000 Commerzbank AG 7.75% 16/3/ ,770, ,997,000 Commerzbank AG '144A' 8.125% 19/9/2023 4,393, ,488,000 Commerzbank AG Reg 8.125% 19/9/2023 7,470, ,513,000 HSH Nordbank AG FRN 14/2/ ,013, ,704,000 HSH Nordbank AG FRN 14/2/ ,978, ,300,000 KFW 3.125% 4/7/2016 7,749, ,300,000 KFW 0.50% 25/7/2016 7,352, ,300,000 KFW 0.875% 13/10/2017 7,430, ,998,600 TUI AG Reg 2.75% 24/3/2016 9,398, ,868, Securities pledged or given in guarantee, see Note 14, for further details. The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 95

98 BlackRock European Credit Strategies Fund continued Portfolio of Investments as at 31 May 2014 Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding Market % of Net Assets Holding Market % of Net Assets Ireland 3,455,000 AIB Mortgage Bank 2.625% 29/7/2016 3,582, ,875,000 AIB Mortgage Bank 4.875% 29/6/2017 5,450, ,200,000 Allied Irish Banks Plc 2.75% 16/4/ ,258, ,851,000 Arbour Clo Ltd ABS 'A' FRN 16/6/ ,851, ,627,000 Arbour Clo Ltd ABS 'E' FRN 16/6/2027 2,589, ,210,000 Arbour Clo Ltd ABS 'F' FRN 16/6/2027 1,192, ,980,000 Bank of Ireland 3.25% 15/1/ ,479, ,060,000 Bank of Ireland Mortgage Bank 2.75% 22/3/2018 9,635, ,655,000 Bank of Ireland Mortgage Bank 3.625% 2/10/2020 4,097, ,320,000 CVC Cordatus Loan Fund III Ltd 'A1' FRN 8/7/ ,238, ,384,000 DEPFA Bank Plc FRN 15/12/ ,866, ,150,000 FGA Capital Ireland Plc 2.625% 17/4/2019 4,189, ,431, Italy 5,388,000 Banca Monte dei Paschi di Siena SpA 4.875% 15/9/2016 5,815, ,925,000 Banca Monte dei Paschi di Siena SpA 2.875% 16/4/ ,105, ,575,000 Banco Popolare SC 3.50% 14/3/2019 7,778, ,285,826 Berica 8 Residential MBS Srl 'A' FRN 31/3/2048 6,984, ,200,000 Buzzi Unicem SpA 1.375% 17/7/ ,840, ,000 CIR-Compagnie Industriali Riunite SpA 5.75% 16/12/ ,028 GBP 2,260,000 Enel SpA FRN 15/9/2076 2,926, ,517 F-E Gold Srl ABS 'A2' FRN 30/7/ , ,129,000 Gamenet SpA Reg 7.25% 1/8/2018 7,351, ,813,000 Italy Buoni Poliennali Del Tesoro 4.75% 1/5/ ,861, ,565,000 Italy Buoni Poliennali Del Tesoro 4.75% 1/6/ ,648, ,387 Leasimpresa Finance Srl ABS 'A' FRN 22/12/ , ,275,000 Mediobanca SpA 2.25% 18/3/2019 9,462, ,340,000 Telecom Italia SpA 4.50% 25/1/2021 3,539, ,490,000 UniCredit SpA Reg 6.95% 31/10/2022 5,391, ,220,000 UniCredit SpA Reg FRN 28/10/ ,937, ,100,000 Unione di Banche Italiane SCpA 2.875% 18/2/2019 8,494, ,103, Jersey GBP 2,550,000 AA Bond Co Ltd 3.781% 31/7/2019 3,175, GBP 1,020,000 AA Bond Co Ltd 4.249% 31/7/2020 1,289, GBP 5,350,000 AA Bond Co Ltd 6.269% 31/7/2025 7,626, Jersey continued GBP 4,200,000 Balfour Beatty Finance No.2 Ltd 1.875% 3/12/2018 5,136, ,781,000 RESPARCS Funding II LP (Flat trading) 7.50% (Perpetual) 13,068, ,295, Luxembourg 6,000,000 APERAM 2.625% 30/9/2020 7,298, ,735,000 CNH Industrial Finance Europe SA 2.75% 18/3/2019 6,813, ,305,000 Galapagos Holding 7.00% 15/6/2022 4,368, ,070,000 Galapagos SA Reg 5.375% 15/6/2021 1,083, ,355,000 GELF Bond Issuer I SA 3.125% 3/4/2018 5,646, ,920,000 Intralot Capital Luxembourg SA Reg 6.00% 15/5/2021 1,939, ,012,000 Intralot Finance Luxembourg SA Reg 9.75% 15/8/2018 4,586, ,260,000 Play Finance 2 SA Reg 5.25% 1/2/2019 3,425, ,976,000 Telecom Italia Capital SA 6.375% 15/11/2033 2,245, ,499,000 Telecom Italia Capital SA 6.00% 30/9/2034 1,819, ,475,000 Telecom Italia Capital SA 7.721% 4/6/2038 2,057, ,400,000 Telecom Italia Finance SA 6.125% 15/11/ ,483, ,552,000 Telecom Italia Finance SA 7.75% 24/1/ ,742, ,509, Mexico 11,230,000 Cemex SAB de CV '144A' 7.25% 15/1/2021 8,967, ,967, Netherlands 9,409,000 Achmea BV FRN 4/4/ ,807, ,900,000 IVG Finance BV 1.75% 29/3/ ,881, ,000,000 Jubilee CDO VIII BV ABS FRN 15/1/2024 3,710, ,300,000 Netherlands Government Bond '144A' 4.00% 15/7/2016 7,892, ,800,000 North Westerly CLO IV 2013 BV 'A1' FRN 15/1/2026 7,780, ,754,000 North Westerly CLO IV 2013 BV E FRN 15/1/ ,063, ,673,000 North Westerly CLO IV 2013 BV Sub FRN 15/1/2026 1,539, GBP 1,440,000 Petrobras Global Finance BV 5.375% 1/10/2029 1,634, GBP 3,870,000 Petrobras Global Finance BV 6.625% 16/1/2034 4,809, ,286,000 Petrobras Global Finance BV 7.25% 17/3/2044 7,546, ,800,000 Portugal Telecom International Finance BV 4.625% 8/5/ ,781, ,520,000 TMF Group Holding BV Reg 9.875% 1/12/2019 2,791, Securities pledged or given in guarantee, see Note 14, for further details. 96 BlackRock Strategic Funds (BSF)

99 BlackRock European Credit Strategies Fund continued Portfolio of Investments as at 31 May 2014 Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding Market % of Net Assets Holding Market % of Net Assets Netherlands continued 2,200,000 Volkswagen International Finance NV '144A' 5.50% 9/11/2015 2,637, ,800,000 Volkswagen International Finance NV Reg 5.50% 9/11/ ,367, ,244, ,440,000 Norway Norske Skogindustrier ASA '144A' 7.125% 15/10/2033 6,879, ,879, Portugal 4,300,000 Caixa Geral de Depositos SA 5.625% 4/12/2015 4,550, ,100,000 Caixa Geral de Depositos SA 3.00% 15/1/2019 4,314, ,000,000 Galp Energia SGPS SA 4.125% 25/1/2019 6,375, ,950,000 Portugal Government International Bond Reg 3.50% 25/3/ ,199, ,021,916 TAGUS-Sociedade de Titularizacao de Creditos SA/Volta II Electricity Receivables 2.98% 16/2/ ,113, ,553, Spain 16,500,000 Acciona SA 3.00% 30/1/ ,706, CHF 7,300,000 Autonomous Community of Catalonia 2.125% 1/10/2014 5,989, ,750,000 Autonomous Community of Valencia Spain 4.00% 2/11/2016 5,006, ,900,000 Ayt Cedulas Cajas Global 4.00% 21/3/2017 4,177, ,200,000 Ayt Cedulas Cajas Global 4.25% 14/6/2018 2,398, ,300,000 AyT Cedulas Cajas X Fondo de Titulizacion 'X' 3.75% 30/6/2025 3,287, ,600,000 AyT Cedulas Cajas XXIII Fondo de Titulizacion de Activos 4.75% 15/6/ ,295, ,600,000 Banco Bilbao Vizcaya Argentaria SA FRN (Perpetual) 4,573, ,200,000 Banco Bilbao Vizcaya Argentaria SA Reg FRN (Perpetual) 12,775, ,700,000 Banco Mare Nostrum SA 3.125% 21/1/2019 3,907, ,300,000 Banco Popular Espanol SA 2.125% 8/10/ ,438, ,500,000 Banco Popular Espanol SA FRN (Perpetual) 14,791, ,500,000 Banco Santander FRN (Perpetual) 5,615, ,100,000 Bankia SA 3.50% 17/1/ ,989, ,900,000 Bankia SA FRN 22/5/ ,812, ,300,000 BBVA Subordinated Capital SAU FRN 11/4/2024 6,433, ,900,000 BPE Financiaciones SA 2.875% 19/5/2016 9,123, ,500,000 BPE Financiaciones SA 2.50% 1/2/ ,710, Spain continued 7,700,000 CaixaBank SA 4.50% 22/11/2016 8,624, ,800,000 CaixaBank SA 3.125% 14/5/2018 7,252, ,000 Cedulas TDA 'A5' 4.25% 28/3/ , ,500,000 Cedulas TDA 6 Fondo de Titulizacion de Activos 3.875% 23/5/2025 8,725, ,000 Cedulas TDA 7 Fondo de Titulizacion de Activos 3.50% 20/6/ , ,100,000 Cedulas TDA Fondo de Titulizacion de Activos 'A6' 4.25% 10/4/2031 8,228, ,000,000 Indra Sistemas SA 1.75% 17/10/ ,161, ,400,000 International Consolidated Airlines Group SA 1.75% 31/5/2018 4,503, ,200,000 Spain Government Bond 2.10% 30/4/ ,861, ,044,000 Spain Government Bond 5.50% 30/7/ ,458, ,055,000 Spain Government Bond 5.50% 30/4/2021 3,709, ,815, Supranational 7,300,000 European Financial Stability Facility 0.50% 7/3/2016 7,343, ,300,000 European Union 2.50% 4/12/2015 7,558, ,901, Sweden SEK 106,000,000 SAS AB 7.50% 1/4/ ,981, SEK 25,000,000 SAS AB 3.625% 1/4/2019 2,324, ,306, Switzerland 3,885,000 Credit Suisse AG FRN 18/9/2025 4,297, ,475,000 UBS AG 5.125% 15/5/2024 6,270, ,830,000 UBS AG FRN 12/2/2026 6,182, ,751, United Kingdom GBP 3,917,320 Annington Finance No 4 Plc 'B3' FRN 10/1/2023 4,789, GBP 4,654,135 Annington Finance No 5 Plc (Pay-in-kind) 13.00% 15/1/2023 7,468, ,000 Barclays Bank Plc 7.625% 21/11/2022 (traded in United Kingdom) 627, ,302,000 Barclays Bank Plc 7.625% 21/11/2022 (traded in United Stated) 1,099, ,906,000 Barclays Plc FRN (Perpetual) 10,740, GBP 9,200,000 Phosphorus Holdco Plc (Pay-in-kind) 10.00% 1/4/ ,269, GBP 1,730,000 Premier Foods Finance Plc Reg 6.50% 15/3/2021 2,195, ,600,000 Royal Bank of Scotland Group Plc 6.00% 19/12/2023 7,566, ,290,000 Royal Bank of Scotland Group Plc '144A' FRN (Perpetual) 2,777, Securities pledged or given in guarantee, see Note 14, for further details. The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 97

100 BlackRock European Credit Strategies Fund continued Portfolio of Investments as at 31 May 2014 Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Other Transferable Securities and Money Market Instruments Holding Market % of Net Assets Holding Market % of Net Assets United Kingdom continued GBP 1,840,000 Stonegate Pub Co Financing Plc Reg 5.75% 15/4/2019 2,290, GBP 16,575,000 Unique Pub Finance Co Plc/The 7.395% 28/3/ ,141, GBP 8,352,786 Unique Pub Finance Co Plc/The 5.659% 30/6/ ,437, GBP 3,409,920 Unique Pub Finance Co Plc/The 'A3' 6.542% 30/3/2021 4,436, GBP 5,000,000 Voyage Care Bondco Plc 11.00% 1/2/2019 6,757, ,598, United States 2,523,000 Cemex Finance LLC 5.25% 1/4/2021 2,642, GBP 9,270,000 Goldman Sachs Group Inc/The 4.25% 29/1/ ,712, ,495,000 Meccanica Holdings USA Inc '144A' 6.25% 15/7/ ,543, ,810,000 Meccanica Holdings USA Inc '144A' 7.375% 15/7/2039 3,650, ,695,000 Meccanica Holdings USA Inc '144A' 6.25% 15/1/ ,874, ,600,000 Verizon Communications Inc 4.15% 15/3/2024 8,948, ,372, Total Bonds 1,345,814, Total Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market 1,450,124, BONDS Jersey GBP 8,700,000 Enterprise Funding Ltd 3.50% 10/9/ ,390, ,390, Luxembourg 13,600,000 Atalaya Luxco PIKco SCA 11.50% 31/12/ ,600, ,600, United Kingdom GBP 63,350,000 Ludgate Funding Plc 1.00% 1/1/2061 2,819, ,819, Total Bonds 27,810, Total Other Transferable Securities and Money Market Instruments 27,810, Securities portfolio at market value 1,571,715, Other Net Liabilities (77,827,119) (5.21) Total Net Assets () 1,493,888, Funds Ireland 93,780,956 Institutional Cash Series Plc - Institutional Euro Assets Liquidity Fund 1 93,780, ,780, Total Funds 93,780, This fund is managed by BlackRock. Securities pledged or given in guarantee, see Note 14, for further details. 98 BlackRock Strategic Funds (BSF)

101 BlackRock European Credit Strategies Fund continued Open Exchange Traded Futures Contracts as at 31 May 2014 Number of Contracts Contract/ Expiration date Underlying exposure (2,056) O STOXX Banks Index June ,707,840 (281,676) (42) FTSE MIB Index June ,547,550 (194,250) (1,211) German Euro BOBL June ,176,015 (1,611,695) (864) German Euro Bund June ,452,904 (3,252,155) (317) German Euro Schatz June ,808,731 (22,665) (683) UK Long Gilt Bond September ,172,580 (604,568) (112) US Bond September ,753,887 (66,811) (749) US Treasury 10 Year Note September ,630,858 (176,156) (23) US Treasury 5 Year Note September ,679,022 (792) (86) US Ultra Bond September ,893,331 (91,750) Total 601,822,718 (6,302,518) Note: The net unrealised depreciation of attributed to these transactions is included in the Statement of Net Assets (see Notes 2(d)). Purchased Put Options as at 31 May 2014 Number of contracts subject to Put Issuer Underlying exposure Market 550 O STOXX 50 Index Put Option strike price 3, expiring on 20/6/2014 4,010,354 (186,450) 90,750 1,100 O STOXX 50 Index Put Option strike price 3, expiring on 20/6/2014 6,219,575 (454,080) 144,100 Total 10,229,929 (640,530) 234,850 Note: Purchased Put Options are included in the Statement of Net Assets (see Note 2(d)). Where no counterparty is shown the Purchased Put Option is exchange traded. Sector Breakdown as at 31 May 2014 % of Net Assets* Financial Consumer, Cyclical Government Communications 9.49 Industrial 8.07 Asset Backed Securities 7.08 Funds 6.28 Basic Materials 2.43 Consumer, Non-cyclical 1.70 Energy 1.36 Utilities 0.96 Technology 0.80 Mortgage Securities 0.47 Diversified 0.00 Other Net Liabilities (5.21) Open Forward Foreign Exchange Transactions as at 31 May 2014 Purchases Sales Date CHF 1,280,000 1,051,142 12/6/2014 (2,654) CHF 470, ,971 12/6/2014 (1,979) CHF 1,610,000 1,318,988 12/6/2014 (186) CHF 80,000 65,569 12/6/2014 (39) 1,318,095 CHF 1,610,000 12/6/2014 (707) 65,645 CHF 80,000 12/6/ ,210,474 CHF 6,340,000 12/6/ ,180 43,259,978 GBP 35,610,000 12/6/2014 (516,816) 1,410,976 GBP 1,155,000 12/6/2014 (8,912) 13,184,410 GBP 10,905,000 12/6/2014 (221,542) 11,960,933 GBP 9,960,000 12/6/2014 (283,292) 124,425,210 GBP 103,895,000 12/6/2014 (3,297,058) 1,060,638 GBP 865,000 12/6/2014 (2,741) 1,149,846 NOK 9,535,000 12/6/2014 (19,727) 489,472 NOK 4,030,000 12/6/2014 (4,853) 542,345 NOK 4,490,000 12/6/2014 (8,404) 19,368 NOK 160,000 12/6/2014 (258) 115,114 NOK 955,000 12/6/2014 (2,027) 16,377,968 SEK 145,690,000 12/6/ ,343 1,990,168 SEK 17,910,000 12/6/ , ,331 SEK 2,520,000 12/6/2014 1,015 4,854,970 6,640,000 12/6/2014 (20,139) 26,818,753 37,295,000 12/6/2014 (563,354) 186,004, ,215,000 12/6/2014 (3,577,983) 4,738,418 6,520,000 12/6/2014 (48,586) 14,683 20,000 12/6/2014 (1) GBP 4,420,000 5,394,523 12/6/ ,159 GBP 3,460,000 4,248,182 12/6/2014 5,334 GBP 23,120,000 27,827,291 12/6/ ,047 GBP 1,290,000 1,559,349 12/6/ ,500 GBP 6,090,000 7,522,772 12/6/2014 (36,092) GBP 17,780,000 21,644,234 12/6/ ,430 NOK 3,830, ,049 12/6/2014 6,743 SEK 17,590,000 1,946,630 12/6/2014 (10,919) SEK 12,540,000 1,393,354 12/6/2014 (13,375) SEK 17,910,000 1,976,690 12/6/2014 (5,764) SEK 2,620, ,085 12/6/2014 (4,764) 29,650,000 21,578,985 12/6/ ,139 13,090,000 9,519,203 12/6/ ,516 7,310,000 5,260,867 12/6/ ,158 12,510,000 9,170,761 12/6/ ,121 20,000 14,647 12/6/ CHF 19,187,966 15,719,594 13/6/2014 (1,929) 38,739 CHF 47,315 13/6/2014 (19) 138,585 GBP 113,290 13/6/2014 (686) 462, ,677 13/6/ GBP 206,936, ,089,905 13/6/ ,108 SEK 302,113,936 33,506,452 13/6/2014 (260,517) 225,315, ,913,446 13/6/2014 1,514,188 Net unrealised depreciation ( underlying exposure 1,046,757,149) (5,425,274) Note: The net unrealised depreciation attributed to these transactions is included in the Statements of Net Assets (see note 2(d)). Bank of America N.A., Barclays Bank Plc, BNP Paribas S.A., Citibank N.A. London, Credit Suisse International, Deutsche Bank AG London, Goldman Sachs International, HSBC Bank Plc, State Street Bank and Trust Company, State Street Bank London, UBS AG London are the counterparties to these Open Forward Foreign Exchange Transactions. * Based on the market value of the Portfolio of Investments except for Contract For Difference, which are based on the commitment (where applicable). The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 99

102 BlackRock European Credit Strategies Fund continued Swaps as at 31 May ,705,000 Credit Default Swaps (Bank of America Corp) (Fund receives Fixed 5.000% and provides default protection on Scandinavian Airlines 9.650% 15/6/2014) (20/6/2019) (3,405) 2,815,000 Credit Default Swaps (Bank of America Corp) (Fund receives Fixed 5.000% and provides default protection on Scandinavian Airlines 9.650% 15/6/2014) (20/6/2019) (28,941) 1,755,000 Credit Default Swaps (Bank of America Corp) (Fund receives Fixed 5.000% and provides default protection on Scandinavian Airlines 9.650% 15/6/2014) (20/6/2019) (14,371) 3,720,000 Credit Default Swaps (Bank of America International Ltd) (Fund receives Fixed 5.000% and provides default protection on CNH Industrial Finance Europe SA 6.250% 9/3/2018) (20/3/2019) (915) 1,310,000 Credit Default Swaps (Bank of America International Ltd) (Fund receives Fixed 5.000% and provides default protection on Scandinavian Airlines 9.650% 16/6/2014) (20/3/2018) 145,779 2,100,000 Credit Default Swaps (Bank of America Securities LLC) (Fund receives default protection on Ireland Government Bond 4.500% 18/4/2020 and pays Fixed 1.000%) (20/3/2018) (91,137) 9,286,000 Credit Default Swaps (Bank of America) (Fund receives default protection on Brazilian Government International Bond % 6/3/2030 and pays Fixed 1.000%) (20/6/2019) (139,441) 6,805,000 Credit Default Swaps (Bank of America) (Fund receives default protection on GDF Suez 5.125% 19/2/2018 and pays Fixed 1.000%) (20/6/2019) (6,309) 3,445,000 Credit Default Swaps (Bank of America) (Fund receives default protection on GKN Holdings Plc 6.750% 28/10/2019 and pays Fixed 1.000%) (20/6/2019) (4,389) 3,510,000 Credit Default Swaps (Bank of America) (Fund receives default protection on Portugal Telecom International Finance BV 4.375% 24/3/2017 and pays Fixed 5.000%) (20/6/2018) (397,469) 11,130,000 Credit Default Swaps (Bank of America) (Fund receives default protection on Stora Enso OYJ and pays Fixed 5.000%) (20/9/2018) (761,496) 7,395,210 Credit Default Swaps (Bank of America) (Fund protection on Virgin Media Finance Plc 5.125% 15/2/2022) (20/9/2018) 452,774 8,070,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on AXA SA 4.500% 23/1/2015 and pays Fixed 1.000%) (20/6/2018) (314,473) 350,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on Dixons Retail Plc 8.750% 3/8/2015 and pays Fixed 5.000%) (20/12/2016) (2,024) 150,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on Dixons Retail Plc 8.750% 3/8/2015 and pays Fixed 5.000%) (20/12/2017) (6,155) 3,330,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on Finmeccanica Finance SA/Old 5.750% 12/12/2018 and pays Fixed 5.000%) (20/12/2018) (161,862) 2,600,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on Finmeccanica Finance SA/Old 5.750% 12/12/2018 and pays Fixed 5.000%) (20/6/2018) (215,336) 10,260,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on France Government Bond OAT 4.250% 25/4/2019 and pays Fixed 0.250%) (20/6/2018) (121,668) 4,135,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on GKN Holdings Plc 6.750% 28/10/2019 and pays Fixed 1.000%) (20/6/2019) (7,291) 16,890,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on Italy Government International Bond 6.875% 27/9/2023 and pays Fixed 1.000%) (20/3/2018) (823,120) 4,411,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on itraxx Europe Crossover Series 21 Version 1 and pays Fixed 5.000%) (20/6/2019) (38,085) 1,490,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on itraxx Europe Senior Financials Series 19 Version 1 and pays Fixed 1.000%) (20/6/2018) (59,174) 4,290,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on itraxx Europe Senior Financials Series 19 Version 1 and pays Fixed 1.000%) (20/6/2018) (163,728) 10,660,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on itraxx Europe Senior Financials Series 20 Version 1 and pays Fixed 1.000%) (20/12/2018) (117,985) 800,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on Marks & Spencer Plc 6.125% 2/12/2019 and pays Fixed 1.000%) (20/3/2019) (8,472) 3,100,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on Norske Skogindustrier ASA 7.000% 26/6/2017 and pays Fixed 5.000%) (20/9/2017) (88,088) 5,091,500 Credit Default Swaps (Barclays Bank) (Fund receives default protection on Peugeot SA 8.375% 15/7/2014 and pays Fixed 5.000%) (20/9/2018) (686,945) 460,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on Peugeot SA 8.375% 15/7/2014 and pays Fixed 5.000%) (20/3/2018) (92,226) 4,200,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on Portugal Obrigacoes do Tesouro OT 5.450% 23/9/2013 and pays Fixed 1.000%) (20/12/2017) (481,650) 2,400,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on Portugal Obrigacoes do Tesouro OT 5.450% 23/9/2013 and pays Fixed 1.000%) (20/12/2015) (179,674) 5,000,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on Portugal Obrigacoes do Tesouro OT 5.450% 23/9/2013 and pays Fixed 1.000%) (20/6/2017) (1,306,549) 5,150,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on Stena AB 6.125% 1/2/2017 and pays Fixed 5.000%) (20/12/2017) (604,096) 3,670,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on Stora Enso OYJ 5.125% 23/6/2014 and pays Fixed 5.000%) (20/9/2018) (257,658) 3,697,604 Credit Default Swaps (Barclays Bank) (Fund receives default protection on Unitymedia KabelBW GmbH 9.625% 1/12/2019 and pays Fixed 5.000%) (20/9/2018) (172,677) 100 BlackRock Strategic Funds (BSF)

103 BlackRock European Credit Strategies Fund continued Swaps as at 31 May ,270,000 Credit Default Swaps (Barclays Bank) (Fund receives Fixed 0.250% and provides default protection on France Government Bond OAT 4.250% 25/4/2019) (20/6/2023) 167,025 8,070,000 Credit Default Swaps (Barclays Bank) (Fund protection on Aviva Plc 9.500% 20/6/2016) (20/6/2018) 294,689 12,620,000 Credit Default Swaps (Barclays Bank) (Fund protection on Italy Government International Bond 6.875% 27/9/2023) (20/3/2018) 686, ,000 Credit Default Swaps (Barclays Bank) (Fund protection on Italy Government International Bond 6.875% 27/9/2023) (20/3/2018) 12,673 5,010,000 Credit Default Swaps (Barclays Bank) (Fund protection on Ladbrokes Group Finance Plc 7.625% 5/3/2017) (20/3/2019) 68,194 3,910,000 Credit Default Swaps (Barclays Bank) (Fund protection on Ladbrokes Group Finance Plc 7.625% 5/3/2017) (20/3/2019) 57, ,000 Credit Default Swaps (Barclays Bank) (Fund protection on ThyssenKrupp AG 4.375% 18/3/2015) (20/3/2018) 50, ,000 Credit Default Swaps (Barclays Bank) (Fund protection on Astaldi SpA 7.125% 1/12/2020) (20/6/2019) 23,413 8,530,000 Credit Default Swaps (Barclays Bank) (Fund protection on itraxx Europe Sub Financials Series 20 Version 1) (20/12/2018) 74,473 1,350,000 Credit Default Swaps (Barclays Bank) (Fund protection on Portugal Telecom International Finance BV 4.375% 24/3/2017) (20/9/2017) 264,754 1,430,000 Credit Default Swaps (Barclays Bank) (Fund protection on Scandinavian Airlines 9.650% 16/6/2014) (20/12/2017) 242,378 5,150,000 Credit Default Swaps (Barclays Bank) (Fund protection on Sunrise Communications Holdings SA 8.500% 31/12/2018) (20/12/2017) 445, ,000 Credit Default Swaps (Barclays Bank) (Fund protection on TUI AG 2.750% 24/3/2016) (20/6/2019) 5,199 2,040,000 Credit Default Swaps (Barclays Bank) (Fund protection on UPC Holding BV 8.000% 1/11/2016) (20/6/2017) 199,520 3,650,000 Credit Default Swaps (BNP Paribas) (Fund receives default protection on AXA SA 6.000% 18/6/2013 and pays Fixed 1.000%) (20/6/2018) (227,978) 2,150,000 Credit Default Swaps (BNP Paribas) (Fund receives default protection on Banca Monte dei Paschi di Siena SpA 5.600% 9/9/2020 and pays Fixed 5.000%) (20/6/2016) (488,771) 3,250,000 Credit Default Swaps (BNP Paribas) (Fund receives default protection on Banco Comercial Portugues SA FRN 17/6/2013 and pays Fixed 5.000%) (20/3/2016) (1,119,781) 3,450,000 Credit Default Swaps (BNP Paribas) (Fund receives default protection on Banco Espirito Santo SA 0.454% 19/1/2015 and pays Fixed 5.000%) (20/6/2018) (324,021) 1,020,000 Credit Default Swaps (BNP Paribas) (Fund receives default protection on Caja de Ahorros y Pensiones de Barcelona 3.940% 28/2/2019 and pays Fixed 3.000%) (20/6/2017) (65,209) 1,350,000 Credit Default Swaps (BNP Paribas) (Fund receives default protection on Caja de Ahorros y Pensiones de Barcelona 3.940% 28/2/2019 and pays Fixed 3.000%) (20/6/2017) (83,233) 5,770,000 Credit Default Swaps (BNP Paribas) (Fund receives default protection on GKN Holdings Plc 6.750% 28/10/2019 and pays Fixed 1.000%) (20/6/2019) (10,174) 2,495,000 Credit Default Swaps (BNP Paribas) (Fund receives default protection on Iberdrola Finanzas SAU 3.500% 22/6/2015 and pays Fixed 1.000%) (20/6/2019) (18,515) 8,240,000 Credit Default Swaps (BNP Paribas) (Fund receives default protection on Lafarge SA 6.625% 29/11/2018 and pays Fixed 1.000%) (20/12/2018) (457,304) 3,774,000 Credit Default Swaps (BNP Paribas) (Fund receives default protection on Marks & Spencer Plc 6.125% 2/12/2019 and pays Fixed 1.000%) (20/12/2018) (72,214) 3,100,000 Credit Default Swaps (BNP Paribas) (Fund receives default protection on Norske Skogindustrier ASA 7.000% 26/6/2017 and pays Fixed 5.000%) (20/9/2017) (41,588) 5,091,500 Credit Default Swaps (BNP Paribas) (Fund receives default protection on Peugeot SA 8.375% 15/7/2014 and pays Fixed 5.000%) (20/9/2017) (1,073,746) 5,185,000 Credit Default Swaps (BNP Paribas) (Fund receives default protection on St-Gobain Nederland BV and pays Fixed 1.000%) (20/9/2018) (219,342) 1,430,000 Credit Default Swaps (BNP Paribas) (Fund receives default protection on Stena AB 6.125% 1/2/2017 and pays Fixed 5.000%) (20/3/2018) (75,167) 3,697,605 Credit Default Swaps (BNP Paribas) (Fund receives default protection on Unitymedia KabelBW GmbH 9.625% 1/12/2019 and pays Fixed 5.000%) (20/9/2018) (190,941) 3,650,000 Credit Default Swaps (BNP Paribas) (Fund protection on Aviva Plc 9.500% 20/6/2016) (20/6/2018) 222,502 2,490,000 Credit Default Swaps (BNP Paribas) (Fund protection on E.ON International Finance BV 6.375% 29/5/2017) (20/6/2019) 21,478 1,256,667 Credit Default Swaps (BNP Paribas) (Fund protection on Glencore Finance Europe SA 6.500% 27/2/2019) (20/6/2021) 46,050 1,500,000 Credit Default Swaps (BNP Paribas) (Fund receives Fixed 3.000% and provides default protection on Banca Monte dei Paschi di Siena SpA 5.600% (9/9/2020)) (20/9/2016) 227,986 3,730,000 Credit Default Swaps (BNP Paribas) (Fund protection on CIR-Compagnie Industriali Riunite SpA 5.750% 16/12/2024) (20/3/2019) 88,200 The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 101

104 BlackRock European Credit Strategies Fund continued Swaps as at 31 May ,697,605 Credit Default Swaps (BNP Paribas) (Fund protection on Virgin Media Finance Plc 5.125% 15/2/2022) (20/9/2018) 238,321 1,500,000 Credit Default Swaps (Citibank) (Fund receives default protection on Banca Monte dei Paschi di Siena SpA 4.500% (24/9/2015) and pays Fixed 5.000%) (20/9/2016) (165,409) 8,360,000 Credit Default Swaps (Citibank) (Fund receives default protection on Brazilian Government International Bond % 6/3/2030 and pays Fixed 1.000%) (20/6/2019) (170,855) 3,700,000 Credit Default Swaps (Citibank) (Fund receives default protection on British Airways Plc 8.750% 23/8/2016 and pays Fixed 5.000%) (20/12/2018) (235,235) 2,750,000 Credit Default Swaps (Citibank) (Fund receives default protection on Dixons Retail PLC 8.750% (3/8/2015) and pays Fixed 5.000%) (20/9/2016) (800,826) 3,330,000 Credit Default Swaps (Citibank) (Fund receives default protection on Dixons Retail Plc 8.750% 3/8/2015 and pays Fixed 5.000%) (20/6/2017) (791,634) 11,090,000 Credit Default Swaps (Citibank) (Fund receives default protection on France Government Bond OAT 4.250% 25/4/2019 and pays Fixed 0.250%) (20/6/2018) (152,159) 3,895,000 Credit Default Swaps (Citibank) (Fund receives default protection on GDF Suez 5.125% 19/2/2018 and pays Fixed 1.000%) (20/6/2019) (11,501) 5,350,000 Credit Default Swaps (Citibank) (Fund receives default protection on GKN Holdings Plc 6.750% 28/10/2019 and pays Fixed 1.000%) (20/6/2019) (6,753) 5,380,000 Credit Default Swaps (Citibank) (Fund receives default protection on Ireland Government Bond 4.500% 18/4/2020 and pays Fixed 1.000%) (20/6/2018) (259,892) 3,500,000 Credit Default Swaps (Citibank) (Fund receives default protection on Ireland Government Bond 5.400% 13/3/2025 and pays Fixed 1.000%) (20/3/2017) (558,760) 25,920,000 Credit Default Swaps (Citibank) (Fund receives default protection on itraxx Europe Crossover Series 20 Version 1 and pays Fixed 5.000%) (20/12/2018) (36,618) 9,801,640 Credit Default Swaps (Citibank) (Fund receives default protection on itraxx Europe Crossover Series 21 Version 1 and pays Fixed 5.000%) (20/6/2019) 9,682 6,320,000 Credit Default Swaps (Citibank) (Fund receives default protection on itraxx Europe Crossover Series 21 Version 1 and pays Fixed 5.000%) (20/6/2019) 6,243 13,430,000 Credit Default Swaps (Citibank) (Fund receives default protection on itraxx Europe Crossover Series 21 Version 1 and pays Fixed 5.000%) (20/6/2019) 13,267 5,155,000 Credit Default Swaps (Citibank) (Fund receives default protection on itraxx Europe Senior Financials Series 20 Version 1 and pays Fixed 1.000%) (20/12/2018) (128,356) 22,870,000 Credit Default Swaps (Citibank) (Fund receives default protection on itraxx Europe Senior Financials Series 20 Version 1 and pays Fixed 1.000%) (20/12/2018) (255,118) 24,300,000 Credit Default Swaps (Citibank) (Fund receives default protection on itraxx Europe Senior Financials Series 20 Version 1 and pays Fixed 1.000%) (20/12/2018) (222,218) 15,400,000 Credit Default Swaps (Citibank) (Fund receives default protection on itraxx Europe Series 9 Version 1 and pays Fixed 5.000%) (20/6/2018) (2,922,344) 900,000 Credit Default Swaps (Citibank) (Fund receives default protection on itraxx Europe Series 9 Version 1 and pays Fixed 5.000%) (20/6/2018) (195,536) 8,560,000 Credit Default Swaps (Citibank) (Fund receives default protection on Markit itraxx Europe Crossover Series 21 Version 1 and pays Fixed 5.000%) (20/6/2019) (84,513) 1,390,000 Credit Default Swaps (Citibank) (Fund receives default protection on Markit itraxx Europe Crossover Series 21 Version 1 and pays Fixed 5.000%) (20/6/2019) (11,117) 1,310,000 Credit Default Swaps (Citibank) (Fund receives default protection on Markit itraxx Europe Crossover Series 21 Version 1 and pays Fixed 5.000%) (20/6/2019) (10,476) 15,561,562 Credit Default Swaps (Citibank) (Fund receives default protection on Markit itraxx Europe Crossover Series 21 Version 1 and pays Fixed 5.000%) (20/6/2019) 15,372 1,875,000 Credit Default Swaps (Citibank) (Fund receives default protection on Norske Skogindustrier ASA 7.000% 26/6/2017 and pays Fixed 5.000%) (20/9/2017) (2,264) 2,000,000 Credit Default Swaps (Citibank) (Fund receives default protection on Norske Skogindustrier ASA 7.000% 26/6/2017 and pays Fixed 5.000%) (20/9/2017) (151,831) 1,950,000 Credit Default Swaps (Citibank) (Fund receives default protection on Peugeot SA 8.375% 15/7/2014 and pays Fixed 5.000%) (20/6/2018) (378,323) 1,350,000 Credit Default Swaps (Citibank) (Fund receives default protection on Portugal Obrigacoes do Tesouro OT 4.950% 25/10/2023 and pays Fixed 1.000%) (20/6/2015) (24,772) 580,000 Credit Default Swaps (Citibank) (Fund receives default protection on Portugal Obrigacoes do Tesouro OT 5.450% 23/9/2013 and pays Fixed 1.000%) (20/3/2018) (46,726) 2,250,000 Credit Default Swaps (Citibank) (Fund receives default protection on Portugal Obrigacoes do Tesouro OT 5.450% 23/9/2013 and pays Fixed 1.000%) (20/9/2017) (466,978) 6,500,000 Credit Default Swaps (Citibank) (Fund receives default protection on Portugal Obrigacoes do Tesouro OT 5.450% 23/9/2013 and pays Fixed 1.000%) (20/6/2017) (1,673,888) 3,625,000 Credit Default Swaps (Citibank) (Fund receives default protection on Scandinavian Airlines 9.650% 16/6/2014 and pays Fixed 5.000%) (20/6/2018) (265,022) 4,140,000 Credit Default Swaps (Citibank) (Fund receives default protection on Societe Air France SA 2.750% 1/4/2020 and pays Fixed 5.000%) (20/9/2018) (681,050) 6,760,000 Credit Default Swaps (Citibank) (Fund receives Fixed 0.250% and provides default protection on France Government Bond OAT 4.250% 25/4/2019) (20/6/2023) 202, BlackRock Strategic Funds (BSF)

105 BlackRock European Credit Strategies Fund continued Swaps as at 31 May ,513,333 Credit Default Swaps (Citibank) (Fund receives Fixed 1.000% and provides default protection on Glencore Finance Europe SA 6.500% 27/2/2019) (20/6/2021) 99,060 13,500,000 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection on Ardagh Packaging Finance Plc 9.250% 15/10/2020) (20/12/2018) 1,072,891 4,500,000 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection on Ardagh Packaging Finance Plc 9.250% 15/10/2020) (20/12/2018) 352,123 3,750,000 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection on CNH Industrial Finance Europe SA 6.250% 9/3/2018) (20/12/2018) 5,381 7,490,000 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection on CNH Industrial Finance Europe SA 6.250% 9/3/2018) (20/3/2019) (18,033) 3,780,000 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection on Grohe Holding GmbH 8.750% 15/12/2017) (20/12/2018) 92,778 1,285,000 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection on Hochtief AG 3.875% 20/3/2020) (20/6/2019) 35,189 4,380,000 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection on Hochtief AG 3.875% 20/3/2020) (20/6/2019) 118,518 12,190,000 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection on itraxx Europe Sub Financials Series 20 Version 1) (20/12/2018) 125,157 19,440,000 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection on itraxx Europe Sub Financials Series 20 Version 1) (20/12/2018) 168,757 3,330,000 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection on Kabel BW Musketeer GmbH 9.500% 15/3/2021) (20/6/2017) 470,883 3,330,000 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection on Kabel BW Musketeer GmbH 9.500% 15/3/2021) (20/6/2017) 337,684 1,330,000 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection on Kabel BW Musketeer GmbH 9.500% 15/3/2021) (20/6/2017) 131,545 3,825,000 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection on Melia Hotels International SA 5.000% 18/12/2014) (20/3/2019) 185,642 2,295,000 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection on Melia Hotels International SA 5.000% 18/12/2014) (20/3/2019) 104,339 3,340,300 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection on Melia Hotels International SA 5.000% 18/12/2014) (20/3/2019) 147,939 1,600,000 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection on Norske Skogindustrier ASA 7.000% 26/6/2017) (20/3/2015) 260,739 3,905,000 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection on Rexel SA 5.125% 15/6/2020) (20/6/2019) 32,881 3,905,000 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection on Rexel SA 5.125% 15/6/2020) (20/6/2019) 44,771 1,260,000 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection on Rexel SA 5.125% 15/6/2020) (20/6/2019) 16,099 2,322,000 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection on Rexel SA 7.000% 17/12/2018) (20/6/2019) 38,272 2,322,000 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection on Rexel SA 7.000% 17/12/2018) (20/6/2019) 27, ,000 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection on Rexel SA 7.000% 17/12/2018) (20/6/2019) 5,181 1,940,000 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection on Rexel SA 7.000% 17/12/2018) (20/6/2019) 10,198 3,200,000 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection on Scandinavian Airlines 9.650% 16/6/2014) (20/12/2017) 582,384 1,500,000 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection on Scandinavian Airlines 9.650% 16/6/2014) (20/12/2017) 246, ,000 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection on Scandinavian Airlines 9.650% 16/6/2014) (20/12/2017) 113,561 1,370,000 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection on Techem GmbH 6.125% 1/10/2019) (20/6/2018) 99,770 1,230,000 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection on Techem GmbH 6.125% 1/10/2019) (20/6/2018) 90,849 1,270,000 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection on TUI AG 2.750% 24/3/2016) (20/6/2019) 11,240 4,000,000 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection on TUI AG 2.750% 24/3/2016) (20/6/2019) 23,117 3,697,604 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection on Virgin Media Finance Plc 5.125% 15/2/2022) (20/9/2018) 210,460 4,010,000 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection on Vougeot Bidco Plc 7.875% 15/7/2020) (20/6/2019) 23,826 18,413,000 Credit Default Swaps (Citigroup Global Markets) (Fund receives default protection on itraxx Europe Crossover Series 20 Version 1 and pays Fixed 5.000%) (20/12/2018) (161,996) 50,900,000 Credit Default Swaps (Citigroup Global Markets) (Fund receives default protection on itraxx Europe Crossover Series 21 Version 1 and pays Fixed 5.000%) (20/6/2019) (1,061,462) The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 103

106 BlackRock European Credit Strategies Fund continued Swaps as at 31 May ,290,000 Credit Default Swaps (Citigroup Global Markets) (Fund receives default protection on itraxx Europe Crossover Series 21 Version 1 and pays Fixed 5.000%) (20/6/2019) (544,366) 14,490,000 Credit Default Swaps (Citigroup Global Markets) (Fund receives default protection on itraxx Europe Crossover Series 21 Version 1 and pays Fixed 5.000%) (20/6/2019) (179,715) 3,920,000 Credit Default Swaps (Citigroup Global Markets) (Fund receives default protection on itraxx Europe Crossover Series 21 Version 1 and pays Fixed 5.000%) (20/6/2019) (29,863) 3,920,000 Credit Default Swaps (Citigroup Global Markets) (Fund receives default protection on itraxx Europe Crossover Series 21 Version 1 and pays Fixed 5.000%) (20/6/2019) (28,888) 1,925,000 Credit Default Swaps (Citigroup Global Markets) (Fund receives default protection on itraxx Europe Crossover Series 21 Version 1 and pays Fixed 5.000%) (20/6/2019) (9,874) 4,000,000 Credit Default Swaps (Citigroup Global Markets) (Fund receives default protection on itraxx Europe Crossover Series 21 Version 1 and pays Fixed 5.000%) (20/6/2019) (9,262) 68,930,000 Credit Default Swaps (Citigroup Global Markets) (Fund receives default protection on itraxx Europe Crossover Series 21 Version 1 and pays Fixed 5.000%) (20/6/2019) (286,496) 24,860,000 Credit Default Swaps (Citigroup Global Markets) (Fund receives default protection on itraxx Europe Crossover Series 21 Version 1 and pays Fixed 5.000%) (20/6/2019) (183,238) 1,290,000 Credit Default Swaps (Citigroup Global Markets) (Fund receives default protection on itraxx Europe Crossover Series 21 Version 1 and pays Fixed 5.000%) (20/6/2019) (10,715) 515,000 Credit Default Swaps (Citigroup Global Markets) (Fund receives default protection on itraxx Europe Crossover Series 21 Version 1 and pays Fixed 5.000%) (20/6/2019) (3,768) 775,000 Credit Default Swaps (Citigroup Global Markets) (Fund receives default protection on itraxx Europe Crossover Series 21 Version 1 and pays Fixed 5.000%) (20/6/2019) (5,542) 4,520,000 Credit Default Swaps (Citigroup Global Markets) (Fund receives default protection on itraxx Europe Crossover Series 21 Version 1 and pays Fixed 5.000%) (20/6/2019) (43,069) 6,250,000 Credit Default Swaps (Citigroup Global Markets) (Fund receives default protection on Markit itraxx Europe Crossover Series 21 Version 1 and pays Fixed 5.000%) (20/6/2019) (121,693) 4,380,000 Credit Default Swaps (Citigroup Global Markets) (Fund receives default protection on Markit itraxx Europe Crossover Series 21 Version 1 and pays Fixed 5.000%) (20/6/2019) (41,735) 51,680,000 Credit Default Swaps (Citigroup Global Markets) (Fund receives Fixed 1.000% and provides default protection on itraxx Europe Series 21 Version 1) (20/6/2019) 299,685 3,940,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on AXA SA 6.000% 18/6/2013 and pays Fixed 1.000%) (20/6/2018) (249,713) 2,000,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Dixons Retail PLC 8.750% (3/8/2015) and pays Fixed 5.000%) (20/12/2016) (520,228) 650,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Dixons Retail Plc 8.750% 3/8/2015 and pays Fixed 5.000%) (20/12/2016) (191,824) 2,125,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Finmeccanica Finance SA/Old 5.750% 12/12/2018 and pays Fixed 5.000%) (20/6/2018) (159,659) 1,230,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Finmeccanica Finance SA/Old 5.750% 12/12/2018 and pays Fixed 5.000%) (20/6/2018) (93,761) 2,490,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Iberdrola Finanzas SAU 3.500% 22/6/2015 and pays Fixed 1.000%) (20/6/2019) (17,222) 3,600,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Marks & Spencer Plc 5.625% 24/3/2014 and pays Fixed 1.000%) (20/3/2018) (150,802) 5,925,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on St-Gobain Nederland BV 5.000% 25/4/2014 and pays Fixed 1.000%) (20/9/2018) (236,960) 1,100,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Stena AB 6.125% 1/2/2017 and pays Fixed 5.000%) (20/12/2017) (92,004) 3,697,605 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Unitymedia KabelBW GmbH 9.625% 1/12/2019 and pays Fixed 5.000%) (20/9/2018) (185,396) 7,680,000 Credit Default Swaps (Credit Suisse) (Fund protection on ArcelorMittal 6.125% 1/6/2018) (20/3/2021) 11,658 3,940,000 Credit Default Swaps (Credit Suisse) (Fund protection on Aviva Plc 9.500% 20/6/2016) (20/6/2018) 239,273 5,946,774 Credit Default Swaps (Credit Suisse) (Fund protection on Ladbrokes Group Finance Plc 7.625% 5/3/2017) (20/3/2019) 71,236 3,964,515 Credit Default Swaps (Credit Suisse) (Fund protection on Ladbrokes Group Finance Plc 7.625% 5/3/2017) (20/3/2019) 51,394 2,490,000 Credit Default Swaps (Credit Suisse) (Fund protection on RWE AG 5.750% 14/2/2033) (20/6/2019) 18,378 3,300,000 Credit Default Swaps (Credit Suisse) (Fund protection on ThyssenKrupp AG 4.375% 18/3/2015) (20/3/2018) 169,544 3,600,000 Credit Default Swaps (Credit Suisse) (Fund protection on ThyssenKrupp AG 4.375% 18/3/2015) (20/3/2018) 171,967 3,400,000 Credit Default Swaps (Credit Suisse) (Fund protection on ThyssenKrupp AG 4.375% 18/3/2015) (20/12/2017) 244,244 2,500,000 Credit Default Swaps (Credit Suisse) (Fund receives Fixed 3.000% and provides default protection on Banca Monte dei Paschi di Siena SpA 5.600% (9/9/2020)) (20/6/2016) 137, BlackRock Strategic Funds (BSF)

107 BlackRock European Credit Strategies Fund continued Swaps as at 31 May ,610,000 Credit Default Swaps (Credit Suisse) (Fund protection on Ardagh Packaging Finance Plc 9.250% 15/10/2020) (20/12/2018) 512,399 1,176,000 Credit Default Swaps (Credit Suisse) (Fund protection on Astaldi SpA 7.125% 1/12/2020) (20/6/2019) 45, ,000 Credit Default Swaps (Credit Suisse) (Fund protection on Astaldi SpA 7.125% 1/12/2020) (20/6/2019) 11,332 1,925,000 Credit Default Swaps (Credit Suisse) (Fund protection on Astaldi SpA 7.125% 1/12/2020) (20/6/2019) 11, ,000 Credit Default Swaps (Credit Suisse) (Fund protection on CIR-Compagnie Industriali Riunite SpA 5.750% 16/12/2024) (20/3/2019) 2,395 1,490,000 Credit Default Swaps (Credit Suisse) (Fund protection on CIR-Compagnie Industriali Riunite SpA 5.750% 16/12/2024) (20/3/2019) 52,745 3,920,000 Credit Default Swaps (Credit Suisse) (Fund protection on CIR-Compagnie Industriali Riunite SpA 5.750% 16/12/2024) (20/6/2019) 48,800 3,920,000 Credit Default Swaps (Credit Suisse) (Fund protection on CIR-Compagnie Industriali Riunite SpA 5.750% 16/12/2024) (20/6/2019) 29,218 1,570,000 Credit Default Swaps (Credit Suisse) (Fund protection on CIR-Compagnie Industriali Riunite SpA 5.750% 16/12/2024) (20/6/2019) 13,368 2,370,000 Credit Default Swaps (Credit Suisse) (Fund protection on CIR-Compagnie Industriali Riunite SpA 5.750% 16/12/2024) (20/6/2019) 21,396 5,215,000 Credit Default Swaps (Credit Suisse) (Fund protection on CIR-Compagnie Industriali Riunite SpA 5.750% 16/12/2024) (20/12/2018) 482,306 3,740,000 Credit Default Swaps (Credit Suisse) (Fund protection on CNH Industrial Finance Europe SA 6.250% 9/3/2018) (20/3/2019) (18,502) 7,500,000 Credit Default Swaps (Credit Suisse) (Fund protection on Grohe Holding GmbH 8.750% 15/12/2017) (20/12/2018) 181,231 8,560,000 Credit Default Swaps (Credit Suisse) (Fund protection on Hochtief AG 3.875% 20/3/2020) (20/6/2019) 197,295 1,310,000 Credit Default Swaps (Credit Suisse) (Fund protection on Hochtief AG 3.875% 20/3/2020) (20/6/2019) 27,659 1,390,000 Credit Default Swaps (Credit Suisse) (Fund protection on Hochtief AG 3.875% 20/3/2020) (20/6/2019) 30,749 2,530,000 Credit Default Swaps (Credit Suisse) (Fund protection on INEOS Group Holdings SA 7.875% 15/2/2016) (20/12/2018) 35,690 35,730,000 Credit Default Swaps (Credit Suisse) (Fund protection on Markit CDX Series 21 Version 1) (20/12/2018) 144,043 4,171,220 Credit Default Swaps (Credit Suisse) (Fund protection on Melia Hotels International SA 5.000% 18/12/2014) (20/3/2019) 147,216 7,780,000 Credit Default Swaps (Credit Suisse) (Fund protection on Metsa Board OYJ 4.000% 13/3/2019) (20/3/2019) 144,082 7,790,000 Credit Default Swaps (Credit Suisse) (Fund protection on Metsa Board OYJ 4.000% 13/3/2019) (20/3/2019) 182,805 3,600,000 Credit Default Swaps (Credit Suisse) (Fund protection on Norske Skogindustrier ASA 7.000% 26/6/2017) (20/3/2015) 420,343 3,015,000 Credit Default Swaps (Credit Suisse) (Fund protection on Norske Skogindustrier ASA 7.000% 26/6/2017) (20/12/2018) 19,063 6,545,000 Credit Default Swaps (Credit Suisse) (Fund protection on Norske Skogindustrier ASA 7.000% 26/6/2017) (20/3/2015) 968,739 3,905,000 Credit Default Swaps (Credit Suisse) (Fund protection on Rexel SA 5.125% 15/6/2020) (20/6/2019) 56,554 2,340,000 Credit Default Swaps (Credit Suisse) (Fund protection on Rexel SA 7.000% 17/12/2018) (20/6/2019) 13,159 1,390,000 Credit Default Swaps (Credit Suisse) (Fund protection on Scandinavian Airlines 9.650% 16/6/2014) (20/12/2017) 235, ,000 Credit Default Swaps (Credit Suisse) (Fund protection on Sunrise Communications Holdings SA 8.500% 31/12/2018) (20/12/2017) 43,994 2,450,000 Credit Default Swaps (Credit Suisse) (Fund protection on Techem GmbH 6.125% 1/10/2019) (20/9/2018) 61, ,000 Credit Default Swaps (Credit Suisse) (Fund protection on Techem GmbH 6.125% 1/10/2019) (20/9/2018) 18, ,267 Credit Default Swaps (Credit Suisse) (Fund protection on Techem GmbH 6.125% 1/10/2019) (20/12/2018) 21,188 3,500,000 Credit Default Swaps (Credit Suisse) (Fund protection on Techem GmbH 6.125% 1/10/2019) (20/6/2018) 88,935 5,630,000 Credit Default Swaps (Credit Suisse) (Fund protection on Techem GmbH 6.125% 1/10/2019) (20/6/2018) 193,385 1,260,000 Credit Default Swaps (Credit Suisse) (Fund protection on TUI AG 2.750% 24/3/2016) (20/6/2019) 10,831 The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 105

108 BlackRock European Credit Strategies Fund continued Swaps as at 31 May ,260,000 Credit Default Swaps (Credit Suisse) (Fund protection on TUI AG 2.750% 24/3/2016) (20/6/2019) 10,831 1,270,000 Credit Default Swaps (Credit Suisse) (Fund protection on TUI AG 2.750% 24/3/2016) (20/6/2019) 6,621 1,290,000 Credit Default Swaps (Credit Suisse) (Fund protection on TUI AG 2.750% 24/3/2016) (20/6/2019) 11, ,000 Credit Default Swaps (Credit Suisse) (Fund protection on Unitymedia KabelBW GmbH 9.625% 1/12/2019) (20/12/2017) 15,947 3,920,000 Credit Default Swaps (Credit Suisse) (Fund protection on Vougeot Bidco Plc 7.875% 15/7/2020) (20/6/2019) 23,728 3,920,000 Credit Default Swaps (Credit Suisse) (Fund protection on Vougeot Bidco Plc 7.875% 15/7/2020) (20/6/2019) 23,728 79,400,000 Credit Default Swaps (Deutsche Asset Management Life) (Fund receives default protection on itraxx Europe Senior Financials Series 19 Version 1 and pays Fixed 1.000%) (20/6/2018) (2,632,818) 9,030,000 Credit Default Swaps (Deutsche Asset Management Life) (Fund receives default protection on Next Plc 5.375% 26/10/2021 and pays Fixed 1.000%) (20/12/2018) (125,694) 3,500,000 Credit Default Swaps (Deutsche Asset Management Life) (Fund receives default protection on Stena AB 6.125% 1/2/2017 and pays Fixed 5.000%) (20/12/2017) (415,242) 56,700,000 Credit Default Swaps (Deutsche Asset Management Life) (Fund receives Fixed 5.000% and provides default protection on itraxx Europe Sub Financials Series 19 Version 1) (20/6/2018) 1,909,121 6,100,000 Credit Default Swaps (Deutsche Asset Management Life) (Fund receives Fixed 5.000% and provides default protection on itraxx Europe Sub Financials Series 20 Version 1) (20/12/2018) 57,945 1,750,000 Credit Default Swaps (Deutsche Bank) (Fund receives default protection on Banca Monte dei Paschi di Siena SpA 5.600% (9/9/2020) and pays Fixed 5.000%) (20/12/2016) (426,068) 3,900,000 Credit Default Swaps (Deutsche Bank) (Fund receives default protection on GDF Suez 5.125% 19/2/2018 and pays Fixed 1.000%) (20/6/2019) (3,616) 2,550,000 Credit Default Swaps (Deutsche Bank) (Fund receives default protection on Ireland Government Bond 4.500% 18/4/2020 and pays Fixed 1.000%) (20/3/2018) (110,666) 3,000,000 Credit Default Swaps (Deutsche Bank) (Fund receives default protection on Ireland Government Bond 4.500% 18/4/2020 and pays Fixed 1.000%) (20/9/2016) (569,912) 9,371,000 Credit Default Swaps (Deutsche Bank) (Fund receives default protection on itraxx Europe Crossover Series 21 Version 1 and pays Fixed 5.000%) (20/6/2019) (198,662) 4,700,000 Credit Default Swaps (Deutsche Bank) (Fund receives default protection on itraxx Europe Crossover Series 21 Version 1 and pays Fixed 5.000%) (20/6/2019) (39,130) 17,630,000 Credit Default Swaps (Deutsche Bank) (Fund receives default protection on itraxx Europe Crossover Series 21 Version 1 and pays Fixed 5.000%) (20/6/2019) (146,778) 1,490,000 Credit Default Swaps (Deutsche Bank) (Fund receives default protection on itraxx Europe Senior Financials Series 19 Version 1 and pays Fixed 1.000%) (20/6/2018) (58,515) 3,250,000 Credit Default Swaps (Deutsche Bank) (Fund receives default protection on Portugal Obrigacoes do Tesouro OT 5.450% 23/9/2013 and pays Fixed 1.000%) (20/12/2015) (243,308) 3,697,605 Credit Default Swaps (Deutsche Bank) (Fund receives default protection on Unitymedia KabelBW GmbH 9.625% 1/12/2019 and pays Fixed 5.000%) (20/9/2018) (183,716) 769,710 Credit Default Swaps (Deutsche Bank) (Fund protection on Astaldi SpA 7.125% 1/12/2020) (20/6/2019) 9, ,000 Credit Default Swaps (Deutsche Bank) (Fund protection on Portugal Telecom International Finance BV 4.375% 24/3/2017) (20/9/2017) 65,829 1,940,000 Credit Default Swaps (Deutsche Bank) (Fund protection on Rexel SA 5.125% 15/6/2020) (20/6/2019) 6,376 3,470,000 Credit Default Swaps (Deutsche Bank) (Fund protection on Techem GmbH 6.125% 1/10/2019) (20/6/2018) 237,552 3,730,000 Credit Default Swaps (Goldman Sachs) (Fund receives default protection on Finmeccanica Finance SA/Old 5.750% 12/12/2018 and pays Fixed 5.000%) (20/12/2018) (215,890) 4,930,000 Credit Default Swaps (Goldman Sachs) (Fund receives default protection on Marks & Spencer Plc 6.125% 2/12/2019 and pays Fixed 1.000%) (20/12/2018) (34,818) 1,725,000 Credit Default Swaps (Goldman Sachs) (Fund protection on ThyssenKrupp AG 4.375% 18/3/2015) (20/12/2017) 127,029 1,190,290 Credit Default Swaps (Goldman Sachs) (Fund protection on Astaldi SpA 7.125% 1/12/2020) (20/6/2019) 17,293 4,750,000 Credit Default Swaps (Goldman Sachs) (Fund protection on CIR-Compagnie Industriali Riunite SpA 5.750% 16/12/2024) (20/6/2019) 83,875 3,730,000 Credit Default Swaps (Goldman Sachs) (Fund protection on CIR-Compagnie Industriali Riunite SpA 5.750% 16/12/2024) (20/3/2019) 122,616 2,420,000 Credit Default Swaps (Goldman Sachs) (Fund protection on Melia Hotels International SA 5.000% 18/12/2014) (20/3/2019) 87, BlackRock Strategic Funds (BSF)

109 BlackRock European Credit Strategies Fund continued Swaps as at 31 May ,383,983 Credit Default Swaps (Goldman Sachs) (Fund protection on Rexel SA 7.000% 17/12/2018) (20/6/2019) 27,770 4,918,324 Credit Default Swaps (Goldman Sachs) (Fund protection on Scandinavian Airlines 9.650% 15/6/2014) (20/6/2019) 266 1,800,000 Credit Default Swaps (Goldman Sachs) (Fund protection on Scandinavian Airlines 9.650% 15/6/2014) (20/6/2019) (11,022) 3,500,000 Credit Default Swaps (Goldman Sachs) (Fund protection on Unitymedia KabelBW GmbH 9.625% 1/12/2019) (20/12/2017) 279,876 4,109,000 Credit Default Swaps (Goldman Sachs) (Fund protection on Vougeot Bidco Plc 7.875% 15/7/2020) (20/6/2019) 35,778 2,220,000 Credit Default Swaps (JP Morgan Chase Bank (Depository Cle) (Fund receives default protection on British Airways Plc and pays Fixed 5.000%) (20/12/2018) (147,368) 3,400,000 Credit Default Swaps (JP Morgan Chase Bank (Depository Cle) (Fund receives default protection on Caja de Ahorros y Pensiones de Barcelona 3.940% 28/2/2019 and pays Fixed 3.000%) (20/12/2015) (136,220) 15,250,000 Credit Default Swaps (JP Morgan Chase Bank (Depository Cle) (Fund receives default protection on Finmeccanica Finance SA/Old 5.750% 12/12/2018 and pays Fixed 5.000%) (20/3/2016) 79,751 2,420,000 Credit Default Swaps (JP Morgan Chase Bank (Depository Cle) (Fund receives default protection on Finmeccanica Finance SA/Old 5.750% 12/12/2018 and pays Fixed 5.000%) (20/12/2017) (189,160) 3,200,000 Credit Default Swaps (JP Morgan Chase Bank (Depository Cle) (Fund receives default protection on Finmeccanica Finance SA/Old 5.750% 12/12/2018 and pays Fixed 5.000%) (20/12/2017) (235,773) 2,785,000 Credit Default Swaps (JP Morgan Chase Bank (Depository Cle) (Fund receives default protection on Marks & Spencer Plc 5.625% 24/3/2014 and pays Fixed 1.000%) (20/12/2017) (123,825) 1,705,000 Credit Default Swaps (JP Morgan Chase Bank (Depository Cle) (Fund receives Fixed 1.000% and provides default protection on ThyssenKrupp AG 4.375% 18/3/2015) (20/12/2017) 125,556 12,980,000 Credit Default Swaps (JP Morgan Chase Bank (Depository Cle) (Fund receives Fixed 5.000% and provides default protection on Finmeccanica Finance SA/Old 5.750% 12/12/2018) (20/3/2018) 808,979 3,250,000 Credit Default Swaps (JP Morgan Chase Bank (Depository Cle) (Fund receives Fixed 5.000% and provides default protection on Portugal Telecom International Finance BV 4.375% 24/3/2017) (20/12/2017) 337,740 20,750,000 Credit Default Swaps (JP Morgan Securities Inc) (Fund receives default protection on Portugal Obrigacoes do Tesouro OT 5.450% 23/9/2013 and pays Fixed 1.000%) (20/6/2015) (1,348,918) 3,440,000 Credit Default Swaps (JP Morgan) (Fund receives default protection on Banco Espirito Santo SA 0.454% 19/1/2015 and pays Fixed 5.000%) (20/6/2018) (327,556) 3,740,000 Credit Default Swaps (JP Morgan) (Fund receives default protection on Enel SpA 5.250% 20/6/2017 and pays Fixed 1.000%) (20/6/2019) (9,233) 11,100,000 Credit Default Swaps (JP Morgan) (Fund receives default protection on France Government Bond OAT 4.250% 25/4/2019 and pays Fixed 0.250%) (20/6/2018) (109,468) 3,740,000 Credit Default Swaps (JP Morgan) (Fund receives default protection on Gas Natural Capital Markets SA 4.500% 27/1/2020 and pays Fixed 1.000%) (20/6/2019) (25,260) 6,570,000 Credit Default Swaps (JP Morgan) (Fund receives default protection on Ireland Government Bond 4.500% 18/4/2020 and pays Fixed 1.000%) (20/3/2018) (261,248) 2,785,000 Credit Default Swaps (JP Morgan) (Fund receives default protection on Marks & Spencer Plc 5.625% 24/3/2014 and pays Fixed 1.000%) (20/12/2017) (150,127) 800,000 Credit Default Swaps (JP Morgan) (Fund receives default protection on Portugal Obrigacoes do Tesouro OT 4.950% 25/10/2023 and pays Fixed 1.000%) (20/6/2015) (12,180) 4,050,000 Credit Default Swaps (JP Morgan) (Fund receives default protection on Portugal Obrigacoes do Tesouro OT 5.450% 23/9/2013 and pays Fixed 1.000%) (20/6/2015) (101,199) 4,100,000 Credit Default Swaps (JP Morgan) (Fund receives default protection on Portugal Obrigacoes do Tesouro OT 5.450% 23/9/2013 and pays Fixed 1.000%) (20/12/2017) (651,341) 3,175,000 Credit Default Swaps (JP Morgan) (Fund receives default protection on Unitymedia KabelBW GmbH 9.625% 1/12/2019 and pays Fixed 5.000%) (20/12/2016) (539,844) 6,770,000 Credit Default Swaps (JP Morgan) (Fund receives Fixed 0.250% and provides default protection on France Government Bond OAT 4.250% 25/4/2019) (20/6/2023) 168,943 3,740,000 Credit Default Swaps (JP Morgan) (Fund receives Fixed 1.000% and provides default protection on E.ON International Finance BV 6.375% 29/5/2017) (20/6/2019) 30,352 29,603,333 Credit Default Swaps (JP Morgan) (Fund receives Fixed 1.000% and provides default protection on itraxx Europe Senior Financials Series 20 Version 1) (20/12/2018) 533,464 3,740,000 Credit Default Swaps (JP Morgan) (Fund receives Fixed 1.000% and provides default protection on RWE AG 5.750% 14/2/2033) (20/6/2019) 27,621 2,000,000 Credit Default Swaps (JP Morgan) (Fund receives Fixed 3.000% and provides default protection on Banca Monte dei Paschi di Sien FRN 30/6/2015) (20/9/2016) 190,077 3,175,000 Credit Default Swaps (JP Morgan) (Fund receives Fixed 5.000% and provides default protection on Kabel BW Musketeer GmbH 9.500% (15/3/2021)) (20/12/2016) 768,210 3,400,000 Credit Default Swaps (JP Morgan) (Fund receives Fixed 5.000% and provides default protection on Portugal Telecom International Finance BV 4.375% 24/3/2017) (20/12/2017) 591,328 The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 107

110 BlackRock European Credit Strategies Fund continued Swaps as at 31 May ,875,000 Credit Default Swaps (JP Morgan) (Fund receives Fixed 5.000% and provides default protection on Scandinavian Airlines 9.650% 15/6/2014) (20/6/2019) (11,481) 1,945,000 Credit Default Swaps (JP Morgan) (Fund receives Fixed 5.000% and provides default protection on Scandinavian Airlines 9.650% 15/6/2014) (20/6/2019) (11,910) 1,260,000 Credit Default Swaps (JP Morgan) (Fund receives Fixed 5.000% and provides default protection on TUI AG 2.750% 24/3/2016) (20/6/2019) 6, ,000 Credit Default Swaps (JP Morgan) (Fund receives Fixed 5.000% and provides default protection on TUI AG 2.750% 24/3/2016) (20/6/2019) 5, ,000 Credit Default Swaps (Morgan Stanley) (Fund receives default protection on Dixons Retail Plc 8.750% 3/8/2015 and pays Fixed 5.000%) (20/12/2016) (247,602) 3,175,000 Credit Default Swaps (Morgan Stanley) (Fund receives default protection on Kabel BW Musketeer GmbH 9.500% 15/3/2021 and pays Fixed 5.000%) (20/12/2016) (371,334) 3,175,000 Credit Default Swaps (Morgan Stanley) (Fund protection on Unitymedia KabelBW GmbH 9.625% 1/12/2019) (20/12/2016) 353,313 1,500,000 Credit Default Swaps (UBS) (Fund receives Fixed 5.000% and provides default protection on Scandinavian Airlines 9.650% 16/6/2014) (20/9/2017) 409,289 GBP 22,464,000 Interest Rate Swap (Barclays Bank) (Fund receives Floating GBP 6 Month LIBOR and pays Fixed 2.823%) (7/4/2024) (446,421) GBP 139,320,000 Interest Rate Swap (JP Morgan) (Fund receives Floating GBP 6 Month LIBOR and pays Fixed 2.775%) (5/3/2024) (2,200,646) 457,571 Total Return Swap (Bank of America International Ltd) (Fund receives 3 Month LIBOR and pays Banco Santander SA) (9/4/2015) (152,646) 955,742 Total Return Swap (Bank of America International Ltd) (Fund receives 3 Month LIBOR and pays Telecom Italia SpA) (10/4/2015) (30,393) 46,230 Total Return Swap (Bank of America International Ltd) (Fund receives 3 Month LIBOR and pays Volkswagen AG) (22/5/2015) (219,592) 120,800 Total Return Swap (Bank of America) (Fund receives 3 Month LIBOR and pays ArcelorMittal) (23/1/2015) 166, ,800 Total Return Swap (Bank of America) (Fund receives 3 Month LIBOR and pays ArcelorMittal) (23/1/2015) 138,356 GBP 54,780 Total Return Swap (Bank of America) (Fund receives 3 Month LIBOR and pays Balfour Beatty Plc) (6/1/2015) 39,817 GBP 62,257 Total Return Swap (Bank of America) (Fund receives 3 Month LIBOR and pays Balfour Beatty Plc) (16/4/2015) 43, Total Return Swap (Bank of America) (Fund receives 3 Month LIBOR and pays Fonciere Des Regions) (20/2/2015) (4,724) 265,683 Total Return Swap (Bank of America) (Fund receives 3 Month LIBOR and pays Telecom Italia SpA) (22/4/2015) (7,120) 2,063,004 Total Return Swap (Bank of America) (Fund receives 3 Month LIBOR and pays Telecom Italia SpA) (22/4/2015) (55,288) 955,742 Total Return Swap (Bank of America) (Fund receives 3 Month LIBOR and pays Telecom Italia SpA) (30/4/2015) 3, ,290 Total Return Swap (Bank of America) (Fund receives 3 Month LIBOR and pays UniCredit SpA) (21/1/2015) (222,355) 46,230 Total Return Swap (Bank of America) (Fund receives 3 Month LIBOR and pays Volkswagen AG) (22/5/2015) (184,920) 7,369 Total Return Swap (Barclays Bank) (Fund receives 3 Month IBOR and pays Fonciere Des Regions) (14/11/2014) (67,751) 3,382 Total Return Swap (Barclays Bank) (Fund receives 3 Month IBOR and pays Fonciere Des Regions) (13/11/2014) (32,520) 359 Total Return Swap (Barclays Bank) (Fund receives 3 Month LIBOR and pays Fonciere Des Regions) (11/2/2015) (3,615) GBP 323,913 Total Return Swap (BNP Paribas) (Fund receives 3 Month LIBOR and pays Balfour Beatty Plc) (14/11/2014) 140,730 GBP 406,105 Total Return Swap (BNP Paribas) (Fund receives 3 Month LIBOR and pays Balfour Beatty Plc) (13/11/2014) 157,545 GBP 128,207 Total Return Swap (BNP Paribas) (Fund receives 3 Month LIBOR and pays Balfour Beatty Plc) (17/11/2014) 52,657 1,398 Total Return Swap (BNP Paribas) (Fund receives 3 Month LIBOR and pays Fonciere Des Regions) (15/4/2015) (4,126) 1,612 Total Return Swap (BNP Paribas) (Fund receives 3 Month LIBOR and pays Fonciere Des Regions) (29/4/2015) (351) GBP 549,561 Total Return Swap (BNP Paribas) (Fund receives 3 Month LIBOR and pays International Consolidated Airlines Group SA) (15/4/2015) (116,884) 893,015 Total Return Swap (BNP Paribas) (Fund receives 3 Month LIBOR and pays Telecom Italia SpA) (20/1/2015) (46,222) 1,245,214 Total Return Swap (BNP Paribas) (Fund receives 3 Month LIBOR and pays Telecom Italia SpA) (30/3/2015) (53,046) 933,340 Total Return Swap (BNP Paribas) (Fund receives 3 Month LIBOR and pays Telecom Italia SpA) (7/4/2015) (15,736) 311,874 Total Return Swap (BNP Paribas) (Fund receives 3 Month LIBOR and pays Telecom Italia SpA) (7/4/2015) (8,315) 12,502 Total Return Swap (BNP Paribas) (Fund receives 3 Month LIBOR and pays Volkswagen AG) (30/1/2015) (71,886) 10,394 Total Return Swap (BNP Paribas) (Fund receives 3 Month LIBOR and pays Volkswagen AG) (30/1/2015) (36,899) 20,780 Total Return Swap (BNP Paribas) (Fund receives 3 Month LIBOR and pays Volkswagen AG) (2/2/2015) (105,978) 371,979 Total Return Swap (Citibank) (Fund receives 3 Month IBOR and pays Indra Sistemas SA) (9/10/2014) (845,099) 325,394 Total Return Swap (Citibank) (Fund receives 3 Month IBOR and pays Repsol SA) (12/11/2014) (810,231) 108 BlackRock Strategic Funds (BSF)

111 BlackRock European Credit Strategies Fund continued Swaps as at 31 May ,157,124 Total Return Swap (Citibank) (Fund receives 3 Month LIB0R and pays Telecom Italia SpA) (22/5/2015) (890,338) 163,080 Total Return Swap (Citibank) (Fund receives 3 Month LIBOR and pays ArcelorMittal) (10/2/2015) 152,657 2,415,492 Total Return Swap (Citibank) (Fund receives 3 Month LIBOR and pays on Telecom Italia SpA) (7/5/2015) 56,764 2,399,352 Total Return Swap (Citibank) (Fund receives 3 Month LIBOR and pays Telecom Italia SpA) (4/5/2015) 56,385 5,513,895 Total Return Swap (Citibank) (Fund receives 3 Month LIBOR and pays Telecom Italia SpA) (9/1/2015) (559,660) 45,269 Total Return Swap (Citigroup Global Markets) (Fund receives 1 Month LIBOR and pays Acciona SA) (16/1/2015) (526,202) 98,731 Total Return Swap (Citigroup Global Markets) (Fund receives 1 Month LIBOR and pays Acciona SA) (19/1/2015) (1,128,485) 163,080 Total Return Swap (Citigroup Global Markets) (Fund receives 3 Month LIBOR and pays ArcelorMittal) (10/2/2015) 171, ,080 Total Return Swap (Citigroup Global Markets) (Fund receives 3 Month LIBOR and pays ArcelorMittal) (10/2/2015) 133,500 1,081,292 Total Return Swap (Citigroup Global Markets) (Fund receives 3 Month LIBOR and pays Banco de Sabadell SA) (26/1/2015) (311,304) NOK 334,400 Total Return Swap (Citigroup Global Markets) (Fund receives 3 Month LIBOR and pays Golden Ocean Group Ltd) (4/2/2015) 78,021 NOK 334,400 Total Return Swap (Citigroup Global Markets) (Fund receives 3 Month LIBOR and pays Golden Ocean Group Ltd) (4/2/2015) 119,389 8,794 Total Return Swap (Citigroup Global Markets) (Fund receives 3 Month LIBOR and pays Repsol SA) (19/1/2015) (173,594) 2,737,500 Total Return Swap (Citigroup Global Markets) (Fund receives 3 Month LIBOR and pays Telecom Italia SpA) (14/1/2015) (301,125) 1,368,750 Total Return Swap (Citigroup Global Markets) (Fund receives 3 Month LIBOR and pays Telecom Italia SpA) (14/1/2015) (150,562) NOK 1,083,916 Total Return Swap (Citigroup Global Markets) (Fund receives 3 Month NIBOR and pays Golden Ocean Group Ltd) (17/4/2015) (99,749) 9,715 Total Return Swap (Citigroup Global Markets) (Fund receives Fixed 0.000% and pays Banco de Sabadell SA) (26/1/2015) (13,776) 3,970,000 Total Return Swap (Credit Suisse) (Fund receives 1 Month LIBOR and pays Barclays Bank Plc 4.875% (Perpetual)) (15/5/2015) (26,104) 300,000 Total Return Swap (Credit Suisse) (Fund receives 1 Month LIBOR and pays Barclays Bank Plc 4.875% (Perpetual)) (16/5/2015) (1,558) 2,300,000 Total Return Swap (Credit Suisse) (Fund receives 1 Month LIBOR and pays Barclays Bank Plc 4.875% (Perpetual)) (16/5/2015) (11,941) GBP 2,150,000 Total Return Swap (Credit Suisse) (Fund receives 1 Month LIBOR and pays Equiniti Newco 2 Plc 7.125% 15/12/2018) (30/9/2014) (82,214) 4,350,000 Total Return Swap (Credit Suisse) (Fund receives 1 Month LIBOR and pays HSH Nordbank AG/Luxembourg 7.408% (Flat Trading) (Perpetual)) (31/3/2015) (411,510) 4,380,000 Total Return Swap (Credit Suisse) (Fund receives 1 Month LIBOR and pays HSH Nordbank AG/Luxembourg 7.408% (Flat Trading) (Perpetual)) (31/3/2015) (429,678) 854,000 Total Return Swap (Credit Suisse) (Fund receives 1 Month LIBOR and pays Italy Buoni Poliennali Del Tesoro 3.750% 1/8/2021) (29/8/2014) (81,962) 700,000 Total Return Swap (Credit Suisse) (Fund receives 1 Month LIBOR and pays Manutencoop Facility 8.500% 1/8/2020) (30/9/2014) (75,314) 700,000 Total Return Swap (Credit Suisse) (Fund receives 1 Month LIBOR and pays Manutencoop Facility 8.500% 1/8/2020) (30/9/2014) (75,314) 700,000 Total Return Swap (Credit Suisse) (Fund receives 1 Month LIBOR and pays Manutencoop Facility 8.500% 1/8/2020) (30/9/2014) (71,814) 1,400,000 Total Return Swap (Credit Suisse) (Fund receives 1 Month LIBOR and pays Manutencoop Facility 8.500% 1/8/2020) (30/9/2014) (136,629) 3,800,000 Total Return Swap (Credit Suisse) (Fund receives 1 Month LIBOR and pays Norddeutsche Landesbank Girozentrale 6.250% 10/4/2024) (31/3/2015) (32,938) 7,020,000 Total Return Swap (Credit Suisse) (Fund receives 1 Month LIBOR and pays Peugeot SA 7.375% 6/3/2018) (29/5/2019) (806,867) 6,950,000 Total Return Swap (Credit Suisse) (Fund receives 1 Month LIBOR and pays Portugal Obrigacoes do Tesouro OT 4.350% 16/10/2017) (30/4/2015) (620,224) GBP 1,100,000 Total Return Swap (Credit Suisse) (Fund receives 1 Month LIBOR and pays Priory Group No 3 Plc 8.875% 15/2/2019) (31/10/2014) (62,297) 37,020,000 Total Return Swap (Credit Suisse) (Fund receives 1 Month LIBOR and pays Spain Government Bond 4.100% 30/7/2018) (31/10/2014) (2,188,531) 4,770,000 Total Return Swap (Credit Suisse) (Fund receives 1 Month LIBOR and pays Spain Government Bond 4.100% 30/7/2018) (29/8/2014) (498,549) 3,750,000 Total Return Swap (Credit Suisse) (Fund receives 1 Month LIBOR and pays UniCredit SpA 8.000% (Perpetual)) (31/3/2015) (28,871) 6,720,000 Total Return Swap (Credit Suisse) (Fund receives 1 Month LIBOT and pays Spain Government Bond 4.100% 30/7/2018) (30/4/2015) (689,997) 2,618 Total Return Swap (Credit Suisse) (Fund receives 3 Month LIBOR and pays Acciona SA) (14/2/2015) (19,666) 14,037 Total Return Swap (Deutsche Bank) (Fund receives 3 Month IBOR and pays Indra Sistemas SA) (22/10/2014) (14,806) 45,017,862 Total Return Swap (Deutsche Bank) (Fund receives Arianna SPV Srl and pays 3 Month LIBOR) (20/7/2014) 733,791 33,250,000 Total Return Swap (Deutsche Bank) (Fund receives St Pauls CLO 1.849% 25/4/2028 and pays 3 Month LIBOR) (27/6/2014) 109,326 7,902,047 Total Return Swap (JP Morgan) (Fund receives 3 Month IBOR and pays Telecom Italia SpA) (8/11/2014) (1,892,540) 2,618 Total Return Swap (JP Morgan) (Fund receives 3 Month LIBOR and pays Acciona SA) (6/2/2015) (31,285) 3,665 Total Return Swap (JP Morgan) (Fund receives 3 Month LIBOR and pays Acciona SA) (6/2/2015) (26,328) The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 109

112 BlackRock European Credit Strategies Fund continued Swaps as at 31 May ,713 Total Return Swap (JP Morgan) (Fund receives 3 Month LIBOR and pays Acciona SA) (6/2/2015) (27,370) 4,189 Total Return Swap (JP Morgan) (Fund receives 3 Month LIBOR and pays Acciona SA) (6/2/2015) (16,861) 2,880 Total Return Swap (JP Morgan) (Fund receives 3 Month LIBOR and pays Acciona SA) (6/2/2015) (9,590) 26,444 Total Return Swap (JP Morgan) (Fund receives 3 Month LIBOR and pays Acciona SA) (26/2/2015) (99,987) GBP 43,652 Total Return Swap (JP Morgan) (Fund receives 3 Month LIBOR and pays Balfour Beatty Plc) (11/2/2015) 40,340 GBP 36,520 Total Return Swap (JP Morgan) (Fund receives 3 Month LIBOR and pays Balfour Beatty Plc) (11/2/2015) 35, Total Return Swap (JP Morgan) (Fund receives 3 Month LIBOR and pays Fonciere Des Regions) (17/2/2015) (7,380) 574 Total Return Swap (JP Morgan) (Fund receives 3 Month LIBOR and pays Fonciere Des Regions) (17/2/2015) (3,679) 143 Total Return Swap (JP Morgan) (Fund receives 3 Month LIBOR and pays Fonciere Des Regions) (17/2/2015) (708) 19,863 Total Return Swap (JP Morgan) (Fund receives 3 Month LIBOR and pays Indra Sistemas SA) (19/12/2014) (26,974) 13,996 Total Return Swap (JP Morgan) (Fund receives 3 Month LIBOR and pays Indra Sistemas SA) (9/1/2015) 2,753 55,983 Total Return Swap (JP Morgan) (Fund receives 3 Month LIBOR and pays Indra Sistemas SA) (15/4/2015) 13,436 1,504,687 Total Return Swap (JP Morgan) (Fund receives 3 Month LIBOR and pays Telecom Italia SpA) (20/2/2015) (61,843) 955,741 Total Return Swap (JP Morgan) (Fund receives 3 Month LIBOR and pays Telecom Italia SpA) (20/2/2015) (24,849) 40,440 Total Return Swap (JP Morgan) (Fund receives 3 Month LIBOR and pays Volkswagen AG) (2/4/2015) (171,870) 473,518 Total Return Swap (JP Morgan) (Fund receives 3 Month LIBOR and pays Volkswagen AG) (2/4/2015) 9,214 21,500 Total Return Swap (JP Morgan) (Fund receives 3 Month LIBOR and pays Volkswagen AG) (2/4/2015) (74,175) 92,461 Total Return Swap (JP Morgan) (Fund receives 3 Month LIBOR and pays Volkswagen AG) (2/4/2015) (374,467) 7,136,000 Total Return Swap (JP Morgan) (Fund receives Fixed 0.000% and pays Bundesobligation 0.750% 24/2/2017) (4/3/2015) (33,375) 12,970,000 Total Return Swap (JP Morgan) (Fund receives Fixed 0.000% and pays Italy Buoni Poliennali Del Tesoro 4.250% 1/2/2019) (15/5/2015) 28,218 3,800,000 Total Return Swap (JP Morgan) (Fund receives Fixed 0.040% and pays Norddeutsche Landesbank Girozentrale 6.250% 10/4/2024) (11/5/2015) (38,401) 13,290,000 Total Return Swap (JP Morgan) (Fund receives Fixed 0.050% and pays Italy Buoni Poliennali Del Tesoro 3.500% 1/12/2018) (15/5/2015) 34,198 6,426,000 Total Return Swap (JP Morgan) (Fund receives Fixed 0.050% and pays Italy Buoni Poliennali Del Tesoro 3.750% 1/3/2021) (13/10/2014) (690,423) 12,760,000 Total Return Swap (JP Morgan) (Fund receives Fixed 0.070% and pays Spain Government Bond 4.600% 30/7/2019) (15/5/2015) 15,504 4,930,000 Total Return Swap (JP Morgan) (Fund receives Fixed 0.080% and pays Italy Buoni Poliennali Del Tesoro 3.750% 1/3/2021) (2/10/2014) (495,057) 12,030,000 Total Return Swap (JP Morgan) (Fund receives Fixed 0.080% and pays Spain Government Bond 4.300% 31/10/2019) (15/5/2015) 8,739 3,181,000 Total Return Swap (JP Morgan) (Fund receives Fixed 0.100% and pays Bundesrepublik Deutschland 2.500% 4/1/2021) (4/3/2015) (54,357) 4,740,000 Total Return Swap (JP Morgan) (Fund receives Fixed 0.150% and pays Spain Government Bond 4.100% 30/7/2018) (1/10/2014) (486,108) 8,000,000 Total Return Swap (JP Morgan) (Fund receives Fixed 0.170% and pays Spain Government Bond 3.750% 31/10/2018) (9/2/2015) (387,158) 4,640,000 Total Return Swap (JP Morgan) (Fund receives Fixed 0.200% and pays Ireland Government Bond 5.500% 18/10/2017) (17/9/2014) (161,064) 7,480,000 Total Return Swap (JP Morgan) (Fund receives Fixed 0.200% and pays Spain Government Bond 2.750% 30/4/2019) (4/3/2015) (20,577) 4,850,000 Total Return Swap (JP Morgan) (Fund receives Fixed 0.350% and pays Portugal Obrigacoes do Tesouro OT 4.750% 14/6/2019) (2/10/2014) (1,071,855) 1,045,000 Total Return Swap (JP Morgan) (Fund receives Fixed 0.400% and pays Portugal Obrigacoes do Tesouro OT 4.750% 14/6/2019) (3/11/2014) (212,833) GBP 154,790,000 Total Return Swap (JP Morgan) (Fund receives Markit iboxx Index and pays 3 Month LIBOR) (20/6/2014) 4,101,238 GBP 24,960,000 Total Return Swap (JP Morgan) (Fund receives Markit iboxx Index and pays 3 Month LIBOR) (20/9/2014) 632,193 GBP 9,682,000 Total Return Swap (JP Morgan) (Fund receives Marks & Spencer Plc 4.750% 12/6/2025 and pays Fixed 0.700%) (13/1/2015) 535,733 GBP 7,600,000 Total Return Swap (JP Morgan) (Fund receives Next Plc 4.375% 2/10/2026 and pays Fixed 0.700%) (13/1/2015) 451,395 29,200,000 Total Return Swap (JP Morgan) (Fund receives Spain Government Bond 5.400% 31/1/2023 and pays Fixed 0.250%) (9/2/2015) 1,415,214 13,355,000 Total Return Swap (JP Morgan) (Fund receives UniCredit SpA 3.250% 14/1/2021 and pays Fixed 0.700%) (13/1/2015) 1,097,540 ( underlying exposure 2,680,218,519) (26,553,742) Note: The total market value of (17,394,370) is included in the Statement of Net Assets (see Note 2(d)). 110 BlackRock Strategic Funds (BSF)

113 BlackRock European Diversified Equity Absolute Return Fund Portfolio of Investments as at 31 May 2014 Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding Market % of Net Assets Holding Market % of Net Assets BONDS 4,000,000 Australia National Australia Bank Ltd FRN 27/1/2015 3,999, ,999, Finland 2,500,000 Pohjola Bank Plc FRN 9/8/2014 2,500, ,500, France 9,000,000 Banque Federative du Credit Mutuel SA FRN 25/6/2014 9,005, ,700,000 HSBC France SA FRN 31/12/2014 5,705, ,710, ,000 8,500,000 Hong Kong Hong Kong Mortgage Corp FRN 28/1/ , , Ireland GE Capital European Funding FRN 28/7/2014 8,503, ,503, Netherlands 500,000 ABN AMRO Bank NV FRN 23/6/ , ,000,000 ABN AMRO Bank NV FRN 9/7/2014 4,003, ,000,000 BMW Finance NV FRN 28/11/2014 1,000, ,000,000 BMW Finance NV FRN 29/11/2014 6,997, ,000,000 Cooperatieve Centrale Raiffeisen- Boerenleenbank BA/Netherlands FRN 30/1/ ,002, ,000,000 Cooperatieve Centrale Raiffeisen- Boerenleenbank BA/Netherlands FRN 22/4/2015 4,003, ,507, Switzerland 6,000,000 Credit Suisse AG/London FRN 17/7/2014 6,000, ,000, Total Bonds 69,920, CERTIFICATES OF DEPOSIT Finland 6,000,000 Nordea Bank Finland Plc 0.35% 17/11/2014 6,000, ,000, France 7,800,000 BNP Paribas SA 11/8/2014 (Zero Coupon) 7,792, ,000,000 BNP Paribas SA 14/8/2014 (Zero Coupon) 3,996, ,789, Switzerland 8,000,000 Bank of America NA 6/8/2014 (Zero Coupon) 7,994, ,000,000 JP Morgan Securities Plc 0.29% 11/6/2014 8,000, ,000,000 Mitsubishi Trust and Banking 14/8/2014 (Zero Coupon) 9,993, ,000,000 Mizuho Bank Ltd 5/6/2014 (Zero Coupon) 6,999, ,000,000 Sumitomo Trust and Banking 16/6/2014 (Zero Coupon) 1,999, ,987, Total Certificates of Deposit 52,777, COMMERCIAL PAPER Luxembourg 5,000,000 Antalis SA 27/6/2014 (Zero Coupon) 4,998, ,000,000 Barclays Bank Plc 7/7/2014 (Zero Coupon) 2,999, ,000,000 FMS Wertmanagement 7/7/2014 (Zero Coupon) 10,000, ,500,000 MetLife Short Term Funding LLC 10/7/2014 (Zero Coupon) 4,498, ,000,000 MetLife Short Term Funding LLC 8/8/2014 (Zero Coupon) 9,994, ,000,000 Mont Blanc Capital Corp 14/7/2014 (Zero Coupon) 1,999, ,000,000 Sheffield Receivables Corp 5/6/2014 (Zero Coupon) 8,999, ,500,000 Standard Chartered Bank 13/11/2014 (Zero Coupon) 6,489, ,000,000 Sumitomo Mitsui Banking Corp 10/7/2014 (Zero Coupon) 3,998, ,500,000 Svenska Handelsbanken AB 22/10/2014 (Zero Coupon) 7,491, ,500,000 Svenska Handelsbanken AB 21/11/2014 (Zero Coupon) 7,488, ,957, Total Commercial Paper 68,957, Total Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market 191,654, Funds Ireland 17,998,743 Institutional Cash Series Plc - Institutional Euro Assets Liquidity Fund 1 17,998, ,998, Total Funds 17,998, This fund is managed by BlackRock. The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 111

114 BlackRock European Diversified Equity Absolute Return Fund continued Portfolio of Investments as at 31 May 2014 Other Transferable Securities and Money Market Instruments BONDS Holding Market % of Net Assets Switzerland 8,000,000 Credit Suisse AG/London FRN 13/8/2014 8,001, ,001, Total Bonds 8,001, Total Other Transferable Securities and Money Market Instruments 8,001, Securities portfolio at market value 217,654, Other Net Assets 18,225, Total Net Assets () 235,880, Open Forward Foreign Exchange Transactions as at 31 May 2014 Purchases Sales Date CHF 188, ,419 13/6/2014 (32) 3,143 CHF 3,838 13/6/2014 (1) 381,835 GBP 310,545 13/6/ ,217,689 SEK 19,955,029 13/6/ ,750 29,289 40,122 13/6/2014 (169) GBP 6,668,374 8,186,722 13/6/ ,935 SEK 907,442, ,663,243 13/6/2014 (804,299) 2,375,458 1,726,992 13/6/ ,081 Net unrealised depreciation ( underlying exposure 112,565,364) (754,663) Sector Breakdown as at 31 May 2014 % of Net Assets* Financial Funds 7.63 Consumer, Cyclical 3.38 Other Net Assets * Based on the market value of the Portfolio of Investments except for Contract For Difference, which are based on the commitment (where applicable). Note: The net unrealised depreciation attributed to these transactions is included in the Statement of Net Assets (see Note 2(d)). State Street Bank and Trust Company is the counterparty to these Open Forward Foreign Exchange Transactions. 112 BlackRock Strategic Funds (BSF)

115 BlackRock European Diversified Equity Absolute Return Fund continued Contracts For Difference as at 31 May 2014 Holding Commitment Holding Commitment Austria (53,742) Andritz AG (2,332,403) (27,333) 73,068 Austria Technologie & Systemtechnik AG 687,351 47,956 (1) BUWOG AG (14) (14) (98,310) Conwert Immobilien Invest SE (894,916) 58,566 (121,366) Erste Group Bank AG (3,076,628) (175,962) 23,483 Flughafen Wien AG 1,625,024 40,176 30,294 IMMOFINANZ AG 78,128 1,824 (232,429) IMMOFINANZ AG (599,434) (3,348) (9,482) Kapsch TrafficCom AG (350,834) 24,868 (46,790) Lenzing AG (2,161,230) (18,118) (3,480) Mayr Melnhof Karton AG (313,548) (4,459) 42,835 Oesterreichische Post AG 1,482,305 (69,844) 114 OMV AG 3, (1,166) Palfinger AG (33,219) 959 (16,721) Raiffeisen Bank International AG (407,992) (20,762) (4,029) Schoeller-Bleckmann Oilfield Equipment AG (357,695) Strabag SE 17, (2,934) Telekom Austria AG (20,946) (26) 6,058 UNIQA Insurance Group AG 59,368 2,325 (139,338) Verbund AG (1,985,567) (46,761) (98,655) Vienna Insurance Group AG Wiener Versicherung Gruppe (3,897,859) (200,607) 58,743 Voestalpine AG 1,992,269 32,484 (20,629) Wienerberger AG (271,993) (16,417) 7,157 Wienerberger AG 94,365 3,202 67,805 Zumtobel AG 1,067,929 76,641 (9,596,496) (292,820) Belgium 1,950 Ageas 59,992 (114) 241,540 AGFA-Gevaert NV 558,199 (12,889) (14,441) Anheuser-Busch InBev NV (1,164,522) 4,008 35,286 Anheuser-Busch InBev NV 2,845,463 68,497 (3,584) Arseus NV (140,923) (7,462) 43,004 Barco NV 2,407,364 52,685 (171,746) Belgacom SA (4,179,439) (150,816) 43,029 bpost SA 787,000 57,666 (27,144) Cie d'entreprises CFE (2,144,376) (21,662) 20,035 Cofinimmo (Reit) 1,764,282 (27,518) (91) Cofinimmo (Reit) (8,013) 26 (25,115) Colruyt SA (1,033,231) 1,241 1 Colruyt SA 41 35,391 D'ieteren SA/NV 1,099,421 (58,026) (7,930) Delhaize Group SA (413,470) 12,416 (141,130) Econocom Group (1,007,668) 113,049 34,119 Elia System Operator SA/NV 1,292,940 (17,911) (12,898) Euronav NV (119,307) (3,998) (1,037) EVS Broadcast Equipment SA (40,324) 6,899 54,736 Exmar NV 664,221 37,981 9 Galapagos NV (9) Galapagos NV (146) (14) (23,277) KBC Groep NV (1,014,295) (28,716) 13 Kinepolis Group NV 1,716 (166) 74,189 Melexis NV 2,226, ,139 23,196 Mobistar SA 347,476 19,217 3,368 NV Bekaert SA 93, ,600 Solvay SA 3,633,750 7,850 3,700 Tessenderlo Chemie NV 82,621 (724) (64,605) UCB SA (3,781,331) 7,034 (20,460) Umicore SA (721,522) (14,756) 1,260 Warehouses De Pauw SCA (Reit) 68, ,163, ,634 Denmark (22,504) ALK-Abello A/S (2,568,935) (420,956) 226 Alm Brand A/S ,767 AP Moeller - Maersk A/S 'B' 3,376, , Auriga Industries A/S 'B' 1, ,579 Bang & Olufsen A/S 658,022 47,257 (18,673) Carlsberg A/S 'B' (1,423,575) (12,544) 320 Carlsberg A/S 'B' 24,396 1,351 (83,210) Chr Hansen Holding A/S (2,592,103) 111,426 23,455 Chr Hansen Holding A/S 730,655 (14,357) 5,547 Coloplast A/S 'B' 350,796 1,068 54,891 D/S Norden A/S 1,606,965 27,707 20,325 Danske Bank A/S 419,105 6,185 28,031 Dfds A/S 1,678,804 50,992 24,574 DSV A/S 600,557 18,395 (55,272) DSV A/S (1,350,778) (22,394) (28,422) FLSmidth & Co A/S (1,212,119) (75,196) (1,655) Genmab A/S (48,895) (4,569) (20,252) GN Store Nord A/S (408,374) (6,952) 8,298 H Lundbeck A/S 163,880 (3,827) 26,356 ISS A/S 666,708 12,439 26,752 Jyske Bank A/S Reg 1,084,982 28,130 (20,964) Jyske Bank A/S Reg (850,238) (18,664) (93,395) Matas A/S (1,939,587) (53,112) 22,270 NKT Holding A/S 1,119, (13,247) NKT Holding A/S (665,761) (261) 14,410 Novo Nordisk A/S 'B' 447,539 (17,264) 47,880 Novozymes A/S 'B' 1,716,699 24,073 (26,191) Novozymes A/S 'B' (939,057) (34,762) 13,100 Pandora A/S 709,449 22,087 (6,864) Pandora A/S (371,730) (38,000) 278 Rockwool International A/S 'B' 40,600 1,113 (2,820) Royal UNIBREW (332,495) (4,336) 63,634 Schouw & Co 2,370,216 61,190 28,166 SimCorp A/S 698,153 (76,461) (80) Spar Nord Bank A/S (643) (16) (43,838) Sydbank A/S (858,133) (13,388) (233,530) TDC A/S (1,663,029) (10,567) (40,431) Topdanmark A/S (904,659) (42,267) (12,652) Vestas Wind Systems A/S (496,346) (16,274) 25,875 Vestas Wind Systems A/S 1,015, ,990 9,293 William Demant Holding A/S 611,975 (4,639) 1,465,856 (139,559) Finland 32,402 Amer Sports OYJ 487,326 5,718 (99,520) Cargotec OYJ 'B' (3,026,403) (37,342) 12,205 Caverion Corp 96, ,744 Cramo OYJ 1,279,891 32,432 (68,811) Elisa OYJ (1,500,080) 2,356 (59,301) Fortum OYJ (1,057,337) (28,774) (51,608) Kemira OYJ (596,072) (5,161) 82,080 Kesko OYJ 'B' 2,657, ,315 (11,378) Kesko OYJ 'B' (368,420) (61) 50,030 Kone OYJ 'B' 1,520,412 (2,981) (653) Kone OYJ 'B' (19,845) 281 (17,268) Konecranes OYJ (407,525) (7,127) (22,536) Metso OYJ (635,966) 9,247 3,640 Neste Oil OYJ 54, (38,467) Neste Oil OYJ (578,159) 4,822 (96,275) Nokian Renkaat OYJ (3,023,035) (141,257) 20,339 Orion OYJ 'B' 476,136 11,155 (2,205,431) Outokumpu OYJ (590,835) (40,566) 46,602 Outotec OYJ 384,700 (2,123) 2,167 Ramirent OYJ 17,683 1,690 The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 113

116 BlackRock European Diversified Equity Absolute Return Fund continued Contracts For Difference as at 31 May 2014 Holding Commitment Holding Commitment Finland continued 43,454 Sampo 'A' 1,613,882 51,525 (116,016) Sanoma OYJ (641,568) (31,035) (100,669) Stora Enso OYJ 'R' (755,018) 17,630 20,308 Tieto OYJ 412,659 12,317 5,050 UPM-Kymmene OYJ 65, (122,320) UPM-Kymmene OYJ (1,584,044) (45,345) 10,129 Uponor OYJ 142,110 (367) (16,858) Wartsila OYJ Abp (664,711) 21,459 (418,150) YIT OYJ (3,357,745) (212,180) (9,597,932) (140,102) France (163,442) Accor SA (6,301,506) (428,418) (48,541) Aeroports de Paris (4,659,936) (249,245) (95,121) Air France-KLM (1,066,782) (71,171) 28,166 Air Liquide SA 2,998,271 90,541 15,489 Airbus Group NV 811,933 (3,606) 45,540 ALBIOMA 893,950 30,824 (15,992) Alcatel-Lucent (47,800) (1,631) 33,333 Alcatel-Lucent 99,632 2,643 68,032 Alstom SA 1,965,785 1,449 (377,447) Altran Technologies SA (3,039,203) (135,504) (17,706) Areva SA (289,139) 13,816 (2,526) Arkema SA (189,324) 2,217 2,567 Arkema SA 192,397 (126) (2,094) Assystem (48,602) ,379 AtoS 3,486, , ,688 AXA SA 2,211,451 58,440 (7,248) AXA SA (130,645) (4,927) (60,990) Beneteau SA (750,177) (4,071) (15) BioAlliance Pharma SA (130) 29 15,913 Boiron SA 1,057, ,704 (34,042) Bouygues SA (1,159,981) (56,510) 455 Bouygues SA 15, (40,741) Bull (202,890) (62) 97,984 Bureau Veritas SA 2,155,158 (28,447) (2,592) Cap Gemini SA (138,257) (2,785) 601 Cap Gemini SA 32,057 1, ,375 Carrefour SA 3,052,097 35,630 (99,592) Carrefour SA (2,657,613) 63,260 (18,758) Casino Guichard Perrachon SA (1,757,625) (8,971) 107,091 CGG SA 1,050,991 (34,740) (18,114) CGG SA (177,771) (1,574) (10,151) Christian Dior SA (1,538,384) (28,966) 86,707 Cie de St-Gobain 3,620,017 (99,752) (1,205) Cie de St-Gobain (50,309) (120) 31,746 Cie Generale des Etablissements Michelin 2,870,791 75,988 3 Ciments Francais SA (126,095) CNP Assurances (1,992,931) 57, ,601 Credit Agricole SA 1,876,259 23,481 (227,162) Credit AGricole SA (2,573,745) 4,478 (38,312) Danone SA (2,094,900) (49,654) (14,148) Dassault Systemes SA (1,313,076) (58,857) 14,973 Dassault Systemes SA 1,389,644 51, ,138 Derichebourg SA 1,878,935 (163,448) (45,229) Edenred (1,039,589) 59,984 19,385 Eiffage SA 1,003,949 (12,553) (28,792) Eiffage SA (1,491,138) (187,522) 63,422 Electricite de France 1,633,434 (98,372) (7,883) Electricite de France (203,027) 14,179 (6,363) Eramet (596,277) 5,455 9,749 Essilor International SA 750, (54,326) Etablissements Maurel et Prom (689,669) 6,298 (7,047) Eurofins Scientific SE (1,584,870) (89,767) France continued 617 Eurofins Scientific SE 138,763 11,306 89,483 Eutelsat Communications SA 2,302,398 97,358 42,277 Faurecia 1,275,286 25,012 (2,051) Fonciere Des Regions (Reit) (149,682) (709) 266 Fonciere Des Regions (Reit) 19, (48,171) GameLoft SE (330,935) 13,411 5,744 Gaztransport Et Technigaz SA 274,793 (4,969) (10,181) GDF Suez (208,201) (2,576) 26,589 GDF Suez 543,745 43,750 (10,738) Gecina SA (Reit) (1,113,531) (16,324) 5,706 Gemalto NV 454,597 12,044 (5,556) Groupe Crit (273,911) (7,757) 1,097 Groupe Eurotunnel SA Reg 10,572 (35) (43,628) Groupe Eurotunnel SA Reg (420,443) (5,343) (6,982) Groupe Fnac (248,838) (7,027) 91 Groupe Steria SCA 1,830 (18) 1,759 Haulotte Group SA 21,759 (688) 1,301 Havas SA 8, ,031 Hermes International 1,302,274 15,377 (7,542) ICADE (Reit) (551,622) (17,124) 11,325 ICADE (Reit) 828,311 30, Iliad SA 10, ,250 Imerys SA 1,454,055 12,387 (25) Imerys SA (1,564) 18 37,207 Ingenico 2,467, ,477 14,906 Interparfums SA 465,216 (10,713) 9,670 Ipsen SA 347,685 37,579 (39,759) IPSOS (1,159,770) (32,554) 23,065 JCDecaux SA 677,650 8,614 (1,194) JCDecaux SA (35,080) (1,804) 7,031 Kering 1,131,991 4,226 (6,380) Kering (1,027,180) (10,208) 7,878 Klepierre (Reit) 280,890 15,953 (42,441) Klepierre (Reit) (1,513,234) (53,294) 9,465 L'Oreal SA 1,211,047 4,722 (493) L'Oreal SA (63,079) 346 (137,662) Lagardere SCA (3,500,745) 58,037 16,041 Lagardere SCA 407,923 (76,115) (75,989) Legrand SA (3,503,093) 36,173 1,794 LISI 202,722 (4,590) (4,139) LVMH Moet Hennessy Louis Vuitton SA (599,948) (9,204) (40,875) Mercialys SA (Reit) (662,175) 15,532 41,228 Mersen 911,139 (2,491) (29,932) Metropole Television SA (447,783) (4,623) (26) MGI Coutier (4,037) (185) 100 Montupet 6, ,010 Natixis 1,428,530 50,155 (234,118) Natixis (1,161,225) 33,341 (22,617) Naturex (1,515,339) (45,260) (78,306) Neopost SA (4,580,118) 49,104 (14,732) Nexans SA (644,083) (30,386) 3,580 Norbert Dentressangle SA 411,879 (25,217) (1,145) Numericable Group SA (49,579) (14,036) (79,046) Orange SA (972,266) 4,573 (2,372) Orpea (123,012) 1,233 2,335 Orpea 121, Pernod-Ricard SA 86, ,749 Peugeot SA 505,771 13,678 57,493 Peugeot SA 86,240 6,957 31,670 Plastic Omnium SA 786,049 23,501 (833) Plastic Omnium SA (20,675) (2,116) (22,665) Publicis Groupe SA (1,428,122) (40,583) (23,687) Rallye SA (898,803) (30,675) (24,431) Remy Cointreau SA (1,671,569) (120,891) 114 BlackRock Strategic Funds (BSF)

117 BlackRock European Diversified Equity Absolute Return Fund continued Contracts For Difference as at 31 May 2014 Holding Commitment Holding Commitment France continued (5,282) Renault SA (362,556) (12,191) 121,814 Rexel SA 2,131,136 (1,230) 49,438 Rubis SCA 2,481,293 42,388 (46) Rubis SCA (2,309) (239) 36,260 Safran SA 1,799,040 51,304 (10,793) Sanofi (841,530) (3,202) (16,596) Sartorius Stedim Biotech (2,185,693) 57,657 3,751 Schneider Electric SA 257,469 4,089 (29,733) Schneider Electric SA (2,040,873) 8,258 15,111 SCOR SE 385,633 (6,440) (30,918) SEB SA (2,045,844) 18,957 5,623 Sequana SA Reg 31,545 1,376 55,101 SES SA 1,463,483 18,722 27,955 Societe BIC SA 2,666,068 6,626 (8,802) Societe Generale SA (371,708) 774 5,533 Societe Television Francaise 1 72,565 4,738 (56,650) Societe Television Francaise 1 (742,965) (28,820) (18,045) Sodexo (1,416,172) (8,815) 371,575 Solocal Group 304,692 36,063 (21,510) Sopra Group SA (1,772,424) (51,684) 129,486 STMicroelectronics NV 949,909 57,408 (203,025) STMicroelectronics NV (1,489,391) (91,636) (130,426) Suez Environnement Co (1,927,696) (26,957) 2,991 Tarkett SA 87,786 (2,397) 142,262 Technicolor SA Reg 769,211 12,380 33,083 Technip SA 2,615, ,755 Teleperformance 218,421 22,087 (61,457) Teleperformance (2,823,027) (285,840) 68,664 Thales SA 3,022,589 (100,562) (19,360) Total SA (1,002,074) Total SA 2,019 (11) 1,448 UBISOFT Entertainment 21, (20,310) UBISOFT Entertainment (296,932) (16,798) 8,263 Unibail-Rodamco SE (Reit) 1,692,262 61,353 (10,737) Unibail-Rodamco SE (Reit) (2,198,938) (56,371) 31,779 Valeo SA 3,124,511 (2,243) 58,597 Vallourec SA 2,325,715 12,473 (213,642) Veolia Environnement SA (2,981,374) (195,508) (19,933) Vicat (1,235,647) (39,866) (5,337) Vilmorin & Cie SA (519,664) (9,927) 52,904 Vinci SA 2,862,106 (9,865) (845) Virbac SA (144,875) 2,704 34,383 Vivendi SA 660,497 (2,806) (61,316) Vivendi SA (1,177,880) 333 5,006 Zodiac Aerospace 130,657 1,370 (37,630) Zodiac Aerospace (982,143) (74,428) (9,920,724) (1,299,789) Germany (60,120) Aareal Bank AG (2,087,066) (66,499) 7,688 Adidas AG 603, (35,793) Adidas AG (2,809,751) (55,221) 486,778 ADVA Optical Networking SE 1,615,129 85, ,348 Aixtron SE 1,610,318 62,131 (86,618) Aixtron SE (940,238) (52,745) 761 Amadeus Fire AG 47,829 2,325 79,635 Aurubis AG 3,213,272 79,159 (79,779) Axel Springer SE (3,775,142) (196,419) 11,603 BASF SE 977,785 10,016 (10,591) BASF SE (892,504) (11,883) (17,607) Bauer AG (326,698) (2,452) 21,675 Bayer AG Reg 2,288,880 80,547 (5,825) Bayerische Motoren Werke AG (536,424) (14,844) (1,403) BayWa AG (57,607) (177) 1,041 Bechtle AG 67,280 3,686 Germany continued 87,353 Beiersdorf AG 6,492, ,892 1,189 Bertrandt AG 135,724 3,715 6,959 Bilfinger SE 598,822 (7,470) (26,309) Bilfinger SE (2,263,889) (11,050) (3) Biotest AG (Pref) (270) ,793 Borussia Dortmund GmbH & Co KGaA 751,901 16,424 (7,419) Brenntag AG (1,017,145) (44,383) (64,475) CANCOM SE (2,364,814) (384,900) (17,006) Carl Zeiss Meditec AG (371,241) 5,351 (20,940) CAT Oil AG (402,257) (1,212) 39,908 CENTROTEC Sustainable AG 733,709 (14,604) 29,569 Cewe Stiftung & Co KGAA 1,618,311 83,686 (36,456) Commerzbank AG (421,978) (7,007) (256) CompuGroup Medical AG (4,959) (41) 10,046 Continental AG 1,738,460 79,847 32,855 CTS Eventim AG 1,486,393 65,727 37,980 Daimler AG Reg 2,655, ,465 14,732 Delticom AG 502,288 (66) 12,379 Deutsche Annington Immobilien SE 268,439 26,987 (12,488) Deutsche Bank AG Reg (370,519) 11,328 28,729 Deutsche Euroshop AG 1,046,741 33,038 (35,353) Deutsche Euroshop AG (1,288,087) (21,696) 45,918 Deutsche Lufthansa AG Reg 889,202 54,421 (119,400) Deutsche Lufthansa AG Reg (2,312,181) (78,834) 54,917 Deutsche Post AG Reg 1,485,779 26, ,782 Deutsche Telekom AG Reg 3,657,838 (1,854) (26,444) Deutsche Wohnen AG (428,525) (11,591) 203,804 Deutsche Wohnen AG 3,302, ,681 (91,233) Deutz AG (565,371) (7,785) 304,355 Deutz AG 1,886, ,731 (64,049) Dialog Semiconductor Plc (1,443,344) (140,800) 38,272 Dialog Semiconductor Plc 862, ,335 (267) DIC Asset AG (2,103) (116) 22,408 DMG Mori Seiki AG 528,829 10,442 (1,573) Draegerwerk AG & Co KGaA (Pref) (120,193) (1,641) (95,893) Drillisch AG (2,589,590) (7,087) 45,607 Duerr AG 2,862, ,700 (12,818) Duerr AG (804,586) (33,524) 43,230 E.ON SE 614,731 21,203 (5,311) E.ON SE (75,522) (435) (121,568) ElringKlinger AG (3,620,903) (78,494) (1,129) Evonik Industries AG (32,724) (1,565) 30,227 Evonik Industries AG 876,130 20,179 (187,989) Evotec AG (690,484) 6,036 17,652 Fielmann AG 1,856, ,761 (915) Fielmann AG (96,258) (5,719) (77,117) Fraport AG Frankfurt Airport Services Worldwide (4,339,374) (202,137) (20,191) Freenet AG (457,023) (6,513) 11,048 Freenet AG 250,071 (14,806) (7,755) Fresenius Medical Care AG & Co KGaA (376,505) (40) 43,267 Fresenius Medical Care AG & Co KGaA 2,100,613 (37,704) 7,064 Fresenius SE & Co KGaA 773,155 6,775 (10,174) Fresenius SE & Co KGaA (1,113,544) 1,155 2,601 Fuchs Petrolub SE (Pref) 181,264 2,244 (6,557) Fuchs Petrolub SE (Pref) (456,957) 17, ,101 GEA Group AG 3,965,702 (36,777) 55,444 Gerresheimer AG 2,741,983 46,829 (45,840) Gerry Weber International AG (1,789,823) (47,948) (174) Gesco AG (13,137) (152) (7,596) GFK SE (303,004) (8,003) 6,215 Grammer AG 266,499 2,921 3,007 Grenkeleasing AG 227,931 6,891 (106,812) Hamburger Hafen und Logistik AG (1,984,033) (119,752) (6,628) Hannover Rueck SE (432,875) (7,767) The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 115

118 BlackRock European Diversified Equity Absolute Return Fund continued Contracts For Difference as at 31 May 2014 Holding Commitment Holding Commitment Germany continued (25,163) HeidelbergCement AG (1,591,811) (20,984) 775,978 Heidelberger Druckmaschinen AG 1,925,201 74,463 (2,782) Henkel AG & Co KGaA (Pref) (236,136) 16 1,299 Henkel AG & Co KGaA (Pref) 110,259 (327) 24,006 Hochtief AG 1,601,680 19,349 (1,437) Hugo Boss AG (149,304) 318 2,712 Hugo Boss AG 281,777 11,938 26,515 Indus Holding AG 954,540 57,272 42,750 Infineon Technologies AG 387,913 30,207 9,641 K+S AG Reg 245,845 (2,017) (68,500) K+S AG Reg (1,746,750) (192,305) (32,869) Kloeckner & Co SE (410,534) (28,635) 111,688 Kloeckner & Co SE 1,394,983 47,152 (85,930) Kontron AG (434,634) (1,830) 38,956 Krones AG 2,788, ,508 (46,832) KUKA AG (1,954,768) (128,685) 65,798 KUKA AG 2,746, ,752 (7,031) KWS Saat AG (1,781,655) 118,261 (12,602) LANXESS AG (654,296) 30,549 25,276 LANXESS AG 1,312,330 13,102 8,155 LEG Immobilien AG 421,369 28,223 (82,632) Leoni AG (4,868,677) (431,902) (14,271) Linde AG (2,189,885) (38,270) 57,738 LPKF Laser & Electronics AG 885,124 (9,933) (15,607) MAN SE (1,429,913) 9,949 (6,549) Manz AG (472,772) (28,867) 15,118 Merck KGaA 1,904,112 66,519 (13,817) Merck KGaA (1,740,251) (31,462) (62,882) Metro AG (1,928,905) (117,490) 11,938 Morphosys AG 804,024 77,917 (16,996) MTU Aero Engines AG (1,167,455) (14,617) 29,596 MTU Aero Engines AG 2,032,949 57,300 (6,131) Muenchener Rueckversicherungs AG Reg (998,740) (20,405) 14,106 Nemetschek AG 986,150 54,132 (18,238) Nordex SE (292,538) (23,594) 33,165 Nordex SE 531, ,985 (17,697) Norma Group SE (711,950) (27,120) (171) Patrizia Immobilien AG (1,599) (34) (10,883) Pfeiffer Vacuum Technology AG (860,410) 20,178 (86,106) PNE Wind AG Reg (267,101) (32,914) (32,381) Porsche Automobil Holding SE (Pref) (2,538,670) 27, ,475 ProSiebenSat.1 Media AG Reg 5,687, ,397 (12,888) Puma SE (2,749,655) (6,691) (206,885) QIAGEN NV (3,473,599) (176,409) 1,808 Rational AG 412,495 (30,296) 14,192 Rheinmetall AG 715,986 38,719 (10,230) Rheinmetall AG (516,104) (23,745) (14,622) RIB Software AG (197,616) (47,409) (20,416) RTL Group (1,727,194) (91,596) (103,099) RWE AG (3,042,967) (171,891) 18,084 RWE AG 533,749 36,316 2,832 SAF-Holland SA 33, ,466 Salzgitter AG 46,179 (248) (12,082) Salzgitter AG (380,583) (9,200) 21,321 SAP AG 1,197,174 20,136 (50,938) SAP AG (2,860,169) 84,276 (1,755) Sartorius AG (Pref) (160,056) 4,563 11,876 Schaltbau Holding AG 646,173 22,721 (64,449) SGL Carbon SE (1,627,015) (74,749) (32) SHW AG (1,489) (25) 36 Siemens AG Reg 3,509 (3) (801) Siemens AG Reg (78,073) (2,929) (17,234) Sixt SE (545,715) (43,774) Germany continued 117,515 Sky Deutschland AG 799,925 53,222 (14,507) SMA Solar Technology AG (427,957) (30,731) 18,630 SMA Solar Technology AG 549,585 5,198 (125,669) Software AG (3,560,831) (141,699) (22,596) Stada Arzneimittel AG (776,625) (43,890) (12,961) STRATEC Biomedical AG (466,531) (35,247) 46,120 Stroeer Media AG 643,835 51,219 27,496 Suedzucker AG 414,090 (8,529) (68) Suedzucker AG (1,024) 24 (57,349) Suss Microtec AG (497,388) (62,684) 54,148 Symrise AG 2,139, ,179 (10,137) Symrise AG (400,564) (31,830) (97,542) TAG Immobilien AG (904,409) (24,822) 10,293 TAG Immobilien AG 95,437 4,519 (2,205) Takkt AG (32,402) Talanx AG 6,362 (48) 483,035 Telefonica Deutschland Holding AG 2,734,461 (148,908) 26,709 ThyssenKrupp AG 588,533 (300) (9) ThyssenKrupp AG (198) 26,774 Tipp24 SE 1,323,974 40,626 (15,154) Tom Tailor Holding AG (216,702) 3, ,513 TUI AG 2,437,070 69,013 80,614 United Internet AG Reg 2,699, ,079 6,749 Volkswagen AG (Pref) 1,317,742 40,587 (4,086) Volkswagen AG (Pref) (797,792) (2,593) (17,499) Vossloh AG (1,250,129) 5,425 (6,392) Wacker Chemie AG (546,452) (7,983) 4,378 Wacker Chemie AG 374,275 31,947 42,459 Wacker Neuson SE 658,964 29,678 42,975 Wincor Nixdorf AG 2,035,081 69,350 15,072 Wirecard AG 482,304 24,165 8,031, ,604 Ireland (3,555,830) Bank of Ireland (999,188) (15,889) 159,387 C&C Group Plc 716,444 34,890 (1,125) FBD Holdings Plc (19,440) (332) 44,072 Glanbia Plc 499,115 25,121 (18,758) Glanbia Plc (212,434) (4,877) (47,612) Irish Continental Group Plc (Unit) (1,380,748) (259,197) 38 Kerry Group Plc 'A' 2,110 (37) 85,401 Kingspan Group Plc 1,115,337 (1,908) 3,624 Paddy Power Plc 189,970 (334) (13,090) Paddy Power Plc (686,178) 76,386 (6,301) Smurfit Kappa Group Plc (110,677) (6,931) (885,689) (153,108) Italy (121,348) A2A SpA (106,665) (1,140) 75,855 ACEA SpA 780,548 67,335 (12) Aeroporto di Venezia Marco Polo SpA - SAVE (157) (2) (35,983) Amplifon SpA (164,874) (2,879) (33,461) Ansaldo STS SpA (262,000) (5,368) 832 Ascopiave SpA 1, (42,809) Assicurazioni Generali SpA (714,482) (12,652) (130,902) Astaldi SpA (1,033,471) (33,908) (13,719) Atlantia SpA (277,535) (18,521) (71,247) Autogrill SpA (495,523) (17,828) (542) Banca Generali SpA (11,653) (550) 42,213 Banca IFIS SpA 611,666 (7,518) 14,960 Banca Popolare dell'emilia Romagna SC 122,896 (1,047) 116 BlackRock Strategic Funds (BSF)

119 BlackRock European Diversified Equity Absolute Return Fund continued Contracts For Difference as at 31 May 2014 Holding Commitment Holding Commitment Italy continued 172,545 Banca Popolare di Milano Scarl 114,829 3,080 (376,329) Beni Stabili SpA (Reit) (245,367) (13,725) (7,501) Biesse SpA (57,008) (1,266) (26,565) Brunello Cucinelli SpA (501,016) (70,058) (75,756) Buzzi Unicem SpA (967,404) (76,513) 198,494 Cairo Communication SpA 1,210,813 36, ,235 Cementir Holding SpA 895,430 10,170 2,119 Credito Emiliano SpA 15, (68,271) Danieli & C Officine Meccaniche SpA (1,678,101) (35,290) (13,029) Davide Campari-Milano SpA (81,692) (1,681) 1,814 De'Longhi SpA 29, (36,800) DiaSorin SpA (1,143,376) (61,811) (380) Ei Towers SpA (15,443) (2,884) (683,235) Enel Green Power SpA (1,399,265) 8,034 (151,138) Enel SpA (631,152) (25,177) (17) Engineering SpA (835) (329) (36,563) Eni SpA (687,384) (2,593) 270,266 Esprinet SpA 2,189, ,820 11,807 Falck Renewables SpA 15, ,230 Fiat SpA 1,643,144 (216,372) (110,152) FNM SpA (69,341) 3,250 (379,645) Geox SpA (1,120,712) (91,148) 55,286 Gtech SpA 1,118,436 (50,310) (364,740) Hera SpA (768,872) (30,694) (36,145) Immobiliare Grande Distribuzione (260) (260) (36,145) Immobiliare Grande Distribuzione (Reit) (47,531) (2,855) (187,050) Indesit Co SpA (2,003,306) (72,393) 16,259 Industria Macchine Automatiche SpA 538,173 (33,695) 177,878 Intesa Sanpaolo SpA 439,003 36, ,960 Iren SpA 627,730 22,865 (6,023) Luxottica Group SpA (251,400) (2,831) 102,755 Maire Tecnimont SpA 248,462 (8,599) (51,819) MARR SpA (698,002) 24,873 24,921 Mediaset SpA 90,314 (8,672) (6) Mediaset SpA (22) (3) 17,319 Mediobanca SpA 126,429 (7,886) (605,857) Moleskine SpA (791,249) 150,366 (33,942) Moncler SpA (450,071) (34,674) 204,950 Parmalat SpA 512,375 (976,251) Piaggio & C SpA (2,678,833) (26,119) (16,325) Poltrona Frau SpA (48,224) 65 (28,309) Prelios SpA (17,070) 1,019 (45,945) Prysmian SpA (780,146) 51, ,240 Recordati SpA 2,375, ,113 (234) Reply SpA (14,508) (386) 37,694 Salvatore Ferragamo SpA 838,315 (21,486) (379,233) Saras SpA (412,606) 8,974 24,373 Snam SpA 104,609 (975) (28,292) Societa Iniziative Autostradali e Servizi SpA (266,228) (22,068) 46,140 Sorin SpA 100,124 (457) (154,521) Telecom Italia SpA (141,618) (8,344) (52,747) Tenaris SA (868,216) (49,582) (84,000) Terna Rete Elettrica Nazionale SpA (326,256) (3,107) 17,922 Trevi Finanziaria Industriale SpA 127,784 (16,610) (6,909) TXT e-solutions SpA (64,772) 1,727 20,114 Unione di Banche Italiane SCpA 135,669 9,952 (172,401) Unipolsai Spa (429,968) 13,845 38,157 World Duty Free SpA 382,333 13,927 (12,062) Yoox SpA (282,613) (17,788) (7,610,702) (330,374) Netherlands 33,980 Aalberts Industries NV 824,865 9, ,808 Aegon NV 1,945,856 29,522 (43,275) Akzo Nobel NV (2,375,798) (47,505) 3 AMG Advanced Metallurgical Group NV 22 (54,821) APERAM (1,322,831) (126,518) 151,176 Arcadis NV 3,932,088 9,015 (48,877) ArcelorMittal (548,889) 20,110 60,923 ArcelorMittal 684,165 (3,172) 87,587 ASM International NV 2,665,272 (24,578) (60,525) ASM International NV (1,841,776) 8,555 8,043 ASML Holding NV 506,789 12,121 (219,097) Corbion NV (3,589,904) (15,635) 39,851 Corio NV (Reit) 1,461,137 72, ,126 Delta Lloyd NV 2,979,021 (73,872) (8,588) Delta Lloyd NV (153,081) 5,539 9,147 Eurocommercial Properties NV 321,060 10,428 (117,243) Fugro NV - CVA (4,954,690) 406,664 15,490 Gemalto NV 1,234,088 30,534 (158,649) Heijmans NV - CVA (1,971,214) (23,539) 73,747 Heineken NV 3,791,333 60, ,942 ING Groep NV - CVA 1,160,479 27, ,004 Koninklijke Ahold NV 2,493,698 (106,592) 117,173 Koninklijke BAM Groep NV 449,944 3,369 (33,290) Koninklijke BAM Groep NV (127,834) (6,454) (2,691) Koninklijke Boskalis Westminster NV (112,403) (7,293) 845 Koninklijke DSM NV 44, (17,706) Koninklijke Philips NV (409,982) 1,594 97,409 Koninklijke Ten Cate NV 2,032,439 (41,266) (71,004) Koninklijke Vopak NV (2,666,910) (91,346) (151,578) Koninklijke Wessanen NV (678,766) (19,988) 96,726 Nutreco NV 3,121,348 (93,384) (4,026) OCI NV (111,581) 1,825 (325,230) PostNL NV (1,164,974) (121,119) 2 Randstad Holding NV 86 1 (9,347) Reed Elsevier NV (153,711) (4,120) (104,552) SBM Offshore NV (1,248,351) 97,967 (39) TNT Express NV (255) (3) 339,542 TNT Express NV 2,223,661 29, ,178 TomTom NV 1,140,426 61,094 88,274 Unilever NV - CVA 2,811,527 86,062 (4,230) Unilever NV - CVA (134,725) 22,501 USG People NV 260,787 13,360 (25,574) USG People NV (296,403) (20,224) 23 Wereldhave NV (Reit) 1, (166,243) Wolters Kluwer NV (3,640,722) (316,263) 696 Wolters Kluwer NV 15, ,596,689 (144,419) Norway (87,549) Aker Solutions ASA (1,132,252) (25,571) (28,364) Archer Ltd (34,977) (5,619) 173,273 Atea ASA 1,567, ,834 63,456 Awilco Drilling Plc 1,031,668 (17,967) 118,259 Bakkafrost P/F 1,596, , ,275 Borregaard ASA 2,026,735 20,239 29,461 BW LPG Ltd 303,653 34, ,301 BW Offshore Ltd 166,522 12,523 (277,799) Cermaq ASA (2,454,227) 499,461 (33,817) Det Norske Oljeselskap ASA (264,940) (2,731) 39,900 DNB ASA 550,289 7,073 (89,597) DNB ASA (1,235,695) (48,828) The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 117

120 BlackRock European Diversified Equity Absolute Return Fund continued Contracts For Difference as at 31 May 2014 Holding Commitment Holding Commitment Norway continued Portugal continued 39,824 DNO International ASA 106, ,440,863 Dolphin Group AS 1,028,957 12,060 (202,735) Electromagnetic GeoServices (173,386) 3,639 44,100 Fred Olsen Energy ASA 889,053 (119,083) 208 Gjensidige Forsikring ASA 2, (4,282) Gjensidige Forsikring ASA (58,110) 389 (1,085,441) Golden Ocean Group Ltd (1,451,724) 205,689 17,916 Hexagon Composites ASA 86,174 21,418 2,700,209 Kongsberg Automotive Holding ASA 2,312, ,115 6,358 Kongsberg Gruppen AS 109, ,864 Leroy Seafood Group ASA 1,523,423 (55,736) 54,022 Marine Harvest ASA 473,614 (1,707) (217,167) Marine Harvest ASA (1,903,915) 76,108 2,782 Norsk Hydro ASA 11, (331,326) Norsk Hydro ASA (1,319,640) 17,189 (24) Norwegian Air Shuttle AS (732) (35) (2,561) Norwegian Property ASA (2,344) (14) 57,055 Odfjell Drilling Ltd 241,526 6,497 33,655 Opera Software ASA 314,671 18,516 33,380 Orkla ASA 214, (125,818) Orkla ASA (808,957) (9,136) (49,941) Petroleum Geo-Services ASA (395,247) 6, ,415 Petroleum Geo-Services ASA 1,847,310 (172,733) 2,265 Polarcus Ltd 1,028 (152) (237,980) Prosafe SE (1,462,950) 63,407 (24,973) Questerre Energy Corp 'A' (21,450) 336 (40,162) Royal Caribbean Cruises Ltd (1,611,441) (90,021) 12,359 Salmar ASA 143,307 12,491 1,207 Schibsted ASA 51,065 3,336 (68,047) Schibsted ASA (2,878,907) (188,931) 104,288 Seadrill Ltd 2,890, ,412 (104,211) Seadrill Ltd (2,888,559) (273,140) (279,879) Songa Offshore (87,915) (3,866) 104,687 SpareBank 1 SMN 684,012 10,063 96,107 SpareBank 1 SR Bank ASA 695,758 20,979 95,920 Statoil ASA 2,158,539 34,316 (72,159) Statoil ASA (1,623,832) 6,415 (48,584) Stolt-Nielsen Ltd (986,603) 2, ,111 Storebrand ASA 3,213, , ,906 Subsea 7 SA 1,812,258 25,992 (42,325) Subsea 7 SA (619,048) 2, ,185 Telenor ASA 2,073,716 24,248 (33,142) TGS Nopec Geophysical Co ASA (791,765) 44,691 1,410 TGS Nopec Geophysical Co ASA 33,685 (684) (5,220) Western Bulk ASA (7,238) ,968 Yara International ASA 2,151,410 (22,077) 8,097,767 1,249,596 Portugal 106,113 Altri SGPS SA 240,452 3,345 (203,240) Banco Comercial Portugues SA 'R' (39,490) (5,040) 6,133,334 Banco Comercial Portugues SA 'R' 1,191,707 76,715 1,014,043 Banco Espirito Santo SA (Right) 135, ,882 (202,132) Banco Espirito Santo SA (Right) (27,086) (27,086) 1,139,366 Banco Espirito Santo SA Reg 1,119,997 (177,729) (202,132) Banco Espirito Santo SA Reg (198,696) 12,496 25,717 CTT-Correios de Portugal SA 190,049 (8,600) 377,782 EDP - Energias de Portugal SA 1,306,748 6,624 (686,275) EDP - Energias de Portugal SA (2,373,825) (61,554) (338,869) EDP Renovaveis SA (1,707,222) (29,148) (88,704) Galp Energia SGPS SA (1,155,370) (22,619) 26,773 Galp Energia SGPS SA 348,718 9,529 (194,453) Jeronimo Martins SGPS SA (2,435,524) (22) 10,914 Mota Engil SGPS* (3) (186,390) Mota-Engil SGPS SA (979,479) (33,792) 5,180 Portucel SA 18, (1,200,304) Sonae (1,548,392) (85,244) 997,468 Sonaecom - SGPS SA 1,949,053 (183,311) 637 ZON OPTIMUS SGPS SA 3, (176,658) ZON OPTIMUS SGPS SA (874,104) (4,422) (4,834,523) (393,232) Spain 98,630 Abengoa SA 'B' 339,978 46,987 (143,647) Abengoa SA 'B' (495,151) (52,718) (12,404) Abertis Infraestructuras (Right) (9,973) (9,973) 5,921 Acciona SA 349,931 11, Acerinox SA 1,278 5 (8,216) ACS Actividades de Construccion y Servicios SA (268,869) (9,251) (227,282) Almirall SA (2,691,019) 15,608 76,659 Amadeus IT Holding SA 'A' 2,473, ,982 (73,530) Atresmedia Corp (845,595) (56,152) (236,371) Banco Bilbao Vizcaya Argentaria SA (2,221,651) (83,143) 74,147 Banco de Sabadell SA 179,213 6,820 (115,687) Banco Popular Espanol SA (598,102) (13,659) (18,319) Bankinter SA (105,994) (4,450) 53,733 CaixaBank SA 239,434 3,926 (235) Construcciones y Auxiliar de Ferrocarriles SA (80,617) (1,657) 3,677,706 Deoleo SA 1,563, ,762 37,480 Distribuidora Internacional de Alimentacion SA 252,090 7,730 (87,645) Distribuidora Internacional de Alimentacion SA (589,500) (7,475) (491,208) Duro Felguera SA (2,387,271) 58,945 (818) Ebro Foods SA (13,689) (96) 1,552 Ebro Foods SA 25, ,243 Ence Energia y Celulosa SA 1,948,795 30,432 (18,229) Faes Farma SA (40,195) (1,367) 185,271 Ferrovial SA 2,954,146 20,506 17,272 Fomento de Construcciones y Contratas SA 272,725 7,767 (4,085) Gamesa Corp Tecnologica SA (35,233) (378) 146,965 Gamesa Corp Tecnologica SA 1,267, ,626 (70,117) Gas Natural SDG SA (1,477,716) (31,261) 1,014 Gas Natural SDG SA 21, ,640 Grifols SA 779,413 25,490 55,478 Grupo Catalana Occidente SA 1,534,522 54,335 (32) Grupo Ezentis SA (32) 6 459,030 Iberdrola SA 2,415,875 45,213 9,242 Inditex SA 987,970 (9,097) 87,336 Indra Sistemas SA 1,152,835 1,967 (17,433) Indra Sistemas SA (230,116) (6,276) 293,254 Inmobiliaria Colonial SA 175,659 1,148 (193,266) Jazztel Plc (2,076,643) 32,508 2,982 Let's GOWEX SA 57,553 (702) 946,159 Liberbank SA 730,435 (107,355) 1,013,048 Liberbank SA (Right) 171, ,205 (974,971) Mapfre SA (2,909,313) (15,483) 144,803 Mediaset Espana Comunicacion SA 1,221, ,695 (18,622) Mediaset Espana Comunicacion SA (157,151) (18,950) (163,963) Melia Hotels International SA (1,542,892) (1,729) (397,057) NH Hoteles SA (1,758,962) 62, ,214 Nyesa Valores Corp 43,556 (19,197) 82,083 Obrascon Huarte Lain SA 2,611,060 2,794 (90,411) Obrascon Huarte Lain SA (2,875,974) (5,118) 66,376 Prosegur Cia de Seguridad SA 347,146 7,270 * Investments which are less than 0.5 have been rounded down to zero. 118 BlackRock Strategic Funds (BSF)

121 BlackRock European Diversified Equity Absolute Return Fund continued Contracts For Difference as at 31 May 2014 Holding Commitment Holding Commitment Spain continued 31,304 Red Electrica Corp SA 1,970, ,886 30,508 Repsol SA 632,583 6,911 89,966 Sacyr SA 445,961 23,613 77,963 Tecnicas Reunidas SA 3,576, ,437 93,944 Telefonica SA 1,155,511 22,185 (61,213) Telefonica SA (752,920) (12,011) 45,167 Tubacex SA 168,925 9,126 32,669 Viscofan SA 1,374,385 20,536 (33,247) Viscofan SA (1,398,701) (79,772) (43,401) Zardoya Otis SA (575,063) (32,744) 7,304, ,797 Sweden 49,677 AarhusKarlshamn AB 2,384,952 (28,018) (2,333) Alfa Laval AB (44,833) (469) (9,613) Arcam AB (193,619) (39,318) (75,503) Assa Abloy AB 'B' (2,814,608) 51,423 (42,070) Atlas Copco AB 'A' (907,080) (31,198) (52,893) Avanza Bank Holding AB (1,469,935) 1,865 (119,709) Axis Communications AB (2,581,070) 41,419 (23,501) Betsson AB (597,499) 20, Betsson AB 6,763 (404) 266 Betsson AB (31,312) Betsson AB (31,361) (31,361) 86,515 Bilia AB 'A' 2,009,150 (39,505) 19,745 BillerudKorsnas AB 216,014 9,521 (26,820) BillerudKorsnas AB (293,416) (6,839) (157,000) Boliden AB (1,619,115) 1,363 56,091 Byggmax Group AB 339,543 3, ,483 Castellum AB 1,441,369 23,009 (111,681) Castellum AB (1,418,481) (1,697) (153,115) CDON Group AB (476,917) 191,183 (858,484) Cloetta AB 'B' (2,163,746) (52,320) 20,155 Concentric AB 220,721 6,125 (482) Dios Fastigheter AB (2,997) 15 11,553 Duni AB 132,877 (4,768) 192,104 Electrolux AB 'B' 3,558,435 (129,260) (211,847) Elekta AB 'B' (2,012,202) 124, ,371 Elekta AB 'B' 1,390,287 (94,588) (307,370) Eniro AB (1,792,982) (121,232) (125) Fabege AB (1,302) (43) (20,512) Fastighets AB Balder 'B' (202,055) (7,804) 93,811 Getinge AB 'B' 1,779,007 (203,813) 91,931 Haldex AB 857,512 58,604 20,842 Hemfosa Fastigheter AB 256,345 (3,254) 143,633 Hennes & Mauritz AB 'B' 4,494, , ,702 Hexagon AB 'B' 3,339,731 4,553 (52,687) Hexagon AB 'B' (1,216,019) (10,020) 89,088 Holmen AB 'B' 2,374, ,561 (73,391) Holmen AB 'B' (1,956,390) (49,530) 233,425 Husqvarna AB 'B' 1,348,793 13,765 (144,731) ICA Gruppen AB (3,574,563) (67,196) (33,916) Indutrade AB (1,099,331) 12,003 (93,468) Intrum Justitia AB (2,115,069) (117,790) 54,400 Intrum Justitia AB 1,231, ,583 12,127 JM AB 329,410 13,891 (128,907) JM AB (3,501,549) (102,434) (8,121) Kambi Group Ltd (19,181) (19,181) 16,996 KappAhl AB 72,767 (1,855) 102,106 Kungsleden AB 592,806 (5,029) 5,600 Lindab International AB 49,554 (362) 80,920 Loomis AB 'B' 1,692, ,108 54,923 Lundin Petroleum AB 793,098 (4,735) 34,723 Meda AB 'A' 441,405 (4,367) Sweden continued (103,518) Mekonomen AB (2,113,481) (37,860) 4,193 Millicom International Cellular SA SDR 284,509 (12,475) (12,722) Millicom International Cellular SA SDR (863,231) 40,926 21,149 Modern Times Group AB 'B' 728,572 44,311 (36,142) Modern Times Group AB 'B' (1,245,074) (92,383) (40,607) NCC AB 'B' (1,047,604) 3,301 29,298 NCC AB 'B' 755,847 9,685 80,638 Net Entertainment NE AB 'B' 1,357,906 (27,421) 1,644 Nibe Industrier AB 'B' 35,248 (2,264) 35,448 Nobia AB 231, ,347 Nolato AB 'B' 1,451,655 36,083 82,134 Nordea Bank AB 890,426 40,642 (98,796) Peab AB (581,200) (15,879) 154,192 Rezidor Hotel Group AB 717,862 4,286 (24,724) Saab AB 'B' (526,004) (5,330) (207,781) Sandvik AB (2,180,545) (15,079) 68,859 Sanitec Corp 661,248 17,522 (263,220) SAS AB (380,963) 28,195 (244,428) Seamless Distribution AB (817,830) 248,445 31,063 Securitas AB 'B' 263,424 (250) (33,583) Securitas AB 'B' (284,794) ,043 Skandinaviska Enskilda Banken AB 'A' 2,536,180 21, ,893 Skanska AB 'B' 2,329,321 80,271 (209,110) Skanska AB 'B' (3,558,138) (74,788) (146,421) SKF AB 'B' (2,752,516) (36,429) (10,592) SSAB AB 'A' (75,076) (1,113) 22,022 Svenska Cellulosa AB SCA 'B' 451,310 (6,602) (14,531) Svenska Cellulosa AB SCA 'B' (297,793) 3,850 (19,907) Svenska Handelsbanken AB 'A' (745,382) (15,974) (97) Swedbank AB 'A' (1,900) (48) 57,073 Swedbank AB 'A' 1,118,122 36,171 (63,839) Swedish Match AB (1,644,849) (72,859) 65,123 Swedish Match AB 1,677,932 79,221 20,615 Swedish Orphan Biovitrum AB 193,767 6,533 (332) Tele2 AB 'B' (2,898) ,383 Tele2 AB 'B' 108,078 (5,223) 311,992 Telefonaktiebolaget LM Ericsson 'B' 2,865, ,932 (300,737) TeliaSonera AB (1,637,778) (12,151) 3,371 Tethys Oil AB 28, ,798 Trelleborg AB 'B' 1,131,816 43,804 (7,928) Unibet Group Plc (278,787) 33,589 (66,431) Volvo AB 'B' (712,145) 24, ,072 Volvo AB 'B' 3,345,433 (140,294) 40,678 Wihlborgs Fastigheter AB 573,071 (806) 1,236, ,027 Switzerland (64,750) ABB Ltd Reg (1,130,129) (28,675) 67,175 Adecco SA Reg 4,131, ,934 16,599 AFG Arbonia-Forster Holding AG Reg 390,183 (8,846) (375) Allreal Holding AG Reg (37,655) ams AG 29,973 1,191 (17,472) ams AG (2,086,436) (158,601) 3,568 Aryzta AG 243,284 3,990 87,792 Ascom Holding AG Reg 1,208,006 39,253 16,022 Autoneum Holding AG 2,421,130 80,815 17,792 Baloise Holding AG Reg 1,566,528 15,249 (6,572) Banque Cantonale Vaudoise Reg (2,632,155) 142,791 3 Barry Callebaut AG Reg 2,904 (34) (4,704) Basilea Pharmaceutica Reg (418,025) (61,833) (1,388) Berner Kantonalbank AG Reg (232,709) 8, Bucher Industries AG Reg 121,255 4,362 The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 119

122 BlackRock European Diversified Equity Absolute Return Fund continued Contracts For Difference as at 31 May 2014 Holding Commitment Holding Commitment Switzerland continued Switzerland continued (6,558) Burckhardt Compression Holding AG (2,439,896) 11,160 17,320 Cembra Money Bank Ag 844,762 (18,317) 62,671 Cie Financiere Richemont SA Reg 4,825, ,085 (186,991) Clariant AG Reg (2,825,674) (168,452) (2,279) Comet Holding AG Reg (1,099,422) (74,996) (9,450) Cosmo Pharmaceuticals SpA (1,079,720) (144,731) (124,316) Credit Suisse Group AG Reg (2,708,405) (43,756) (7,042) Daetwyler Holding AG (807,475) (8,781) 8,754 DKSH Holding AG 502,967 (12,844) (1,719) DKSH Holding AG (98,766) 4,422 3,732 Dufry AG Reg 451,162 6,405 (23,261) Dufry AG Reg (2,812,028) (45,487) (50,556) EFG International AG (414,074) 3,424 1,887 Emmi AG Reg 489,932 (9,908) (2,843) EMS-Chemie Holding AG Reg (777,729) 14,494 1,743 EMS-Chemie Holding AG Reg 476,814 (5,667) (30,674) Evolva Holding SA (37,182) (3,338) 4,289 Flughafen Zuerich AG Reg 1,965,446 18,597 (3,082) Flughafen Zuerich AG Reg (1,412,335) (9,134) 987 Forbo Holding AG Reg 737,658 (600) (1,258) Galenica AG Reg (911,861) (25,392) 3,599 GAM Holding AG 48,490 1,376 (10,943) Gategroup Holding AG (218,691) 27,065 11,838 Geberit AG Reg 2,882,559 43,219 (2,021) Geberit AG Reg (492,115) (3,635) 4,773 Georg Fischer AG Reg 2,642,671 4,366 (506) Georg Fischer AG Reg (280,157) 5,657 1,205 Givaudan SA Reg 1,447,845 56,753 1,605 Helvetia Holding AG Reg 561,974 (1,831) 16,404 Implenia AG Reg 896,150 46,837 (5) Inficon Holding AG Reg (1,230) 61 (256) Intershop Holdings AG (71,709) (327) (16,989) Julius Baer Group Ltd (544,481) 28,519 (4,259) Kaba Holding AG Reg 'B' (1,465,082) (26,315) 50,843 Kardex AG Reg 1,803,118 (42,036) 150,904 Kudelski SA 1,884, ,128 (15,302) Kuehne + Nagel International AG Reg (1,535,286) (42,031) 7,239 Kuoni Reisen Holding AG Reg 'B' 2,290,087 16, Lindt & Spruengli AG 353,221 3,763 (27) Lindt & Spruengli AG Reg (1,167,512) (28,227) (106,872) Logitech International SA Reg (1,019,753) 1,357 9,783 Lonza Group AG Reg 769,617 12, Luzerner Kantonalbank AG Reg 62, (72,641) Meyer Burger Technology AG (728,824) (60,287) 35,739 Nestle SA Reg 2,053,407 (11,843) (139,483) Nobel Biocare Holding AG Reg (1,536,556) (109,353) (22,215) Novartis AG Reg (1,460,146) (14,625) (134,407) OC Oerlikon Corp AG Reg (1,513,664) 19,335 88,871 OC Oerlikon Corp AG Reg 1,000,847 2,993 (23,536) Panalpina Welttransport Holding AG Reg (2,808,647) (181,707) 3,334 Partners Group Holding AG 643,348 (13,787) 47,521 PSP Swiss Property AG Reg 3,170,163 (109,470) (1,676) PubliGroupe AG Reg (274,817) 4,979 (692) Rieter Holding AG Reg (117,266) (4,680) 19,981 Roche Holding AG 4,330,241 51,832 (10,117) Schindler Holding AG (1,146,814) (10,566) 31 Schmolz + Bickenbach AG Reg 37 5 (16) Schweizerische National- Versicherungs- Gesellschaft AG Reg (786) 13 (1,116) SGS SA Reg (2,048,382) (26,369) 10,202 Siegfried Holding AG Reg 1,341,948 3, Sika AG 2,422,367 21,647 (10,428) Sonova Holding AG Reg (1,168,401) (85,107) 668 Sonova Holding AG Reg 74, (2,294) Straumann Holding AG Reg (374,648) (7,957) (6,927) Sulzer AG Reg (771,594) (3,835) 1,557 Swatch Group AG/The 672,692 (20,629) (3,215) Swatch Group AG/The (1,389,020) 44,141 8,444 Swiss Life Holding AG Reg 1,488,317 (5,719) (35,829) Swiss Prime Site AG Reg (2,123,138) 52,041 12,495 Swiss Re AG 814,619 16, Swisscom AG Reg 260,039 2,725 (617) Syngenta AG Reg (174,547) Syngenta AG Reg 566 (4) (11,502) Tecan Group AG Reg (1,010,830) 24,295 (4,830) Temenos Group AG Reg (128,569) (8,448) 1,187 Temenos Group AG Reg 31,597 1,555 34,647 Transocean Ltd 1,074,647 14,476 28,966 U-Blox AG 2,825, ,697 19,481 UBS AG Reg 286,884 5,041 1,033 Valiant Holding AG Reg 80,461 (250) (367) Valora Holding AG Reg (72,892) 1,857 (977) Zehnder Group AG (31,328) (578) 12 Zurich Insurance Group AG 2, (3,219) Zurich Insurance Group AG (708,425) (43,288) 8,280,112 (4,373) United Kingdom 34,195 A.G.BARR Plc 266,949 14,219 19,273 Abcam Plc 91,244 3,492 (131,327) Aberdeen Asset Management Plc (712,331) (1,381) (249,376) Advanced Computer Software Group Plc (383,228) (23,848) 438,527 Afren Plc 829,711 21, ,681 African Barrick Gold Plc 1,063,039 (53,420) (65,480) African Barrick Gold Plc (177,263) 9,821 (166,578) Aggreko Plc (3,410,785) 178,991 75,232 Aggreko Plc 1,540,421 (70,380) 130,834 Al Noor Hospitals Group Plc 1,658,685 44,290 (190,255) Alent Plc (746,371) (10,482) (3,824) AMEC Plc (56,767) 239 (778,829) Amerisur Resources Plc (573,297) (42,163) (209,397) Amlin Plc (1,217,396) (68,391) 4,118 Amlin Plc 23,941 (194) (3,169) Anglo American Plc (57,446) 5, ,626 Anite Plc 786,357 7,566 5,796 AO World Plc 19,310 2,830 (39,473) APR Energy Plc (374,636) 18,595 (447,789) Aquarius Platinum Ltd (139,169) (17,172) 164,764 ARM Holdings Plc 1,864,720 99,728 (7,850) Ashmore Group Plc (34,173) (367) 65,652 Ashtead Group Plc 713,094 14,763 (139,730) Ashtead Group Plc (1,517,708) (30,828) (4,286) ASOS Plc (237,535) (11,830) 613 ASOS Plc 33,973 3, Associated British Foods Plc 3,765 (14) (50,571) Associated British Foods Plc (1,885,050) (3,223) 7,415 AstraZeneca Plc 391,987 (463) (1,322) AstraZeneca Plc (69,886) 5,110 (101,902) Avanti Communications Group Plc (349,839) (41,274) 47,097 Aveva Group Plc 1,308,560 72,456 (7,515) Aveva Group Plc (208,800) (9,440) (37,856) Aviva Plc (244,335) (3,564) 345,501 Babcock International Group Plc 5,152,313 77,048 (1,114,874) BAE Systems Plc (5,797,871) (274,182) (63,542) Balfour Beatty Plc (182,797) 23, ,909 Balfour Beatty Plc 508,930 23,794 (2,010) Bank of Georgia Holdings Plc (62,247) (2,640) 120 BlackRock Strategic Funds (BSF)

123 BlackRock European Diversified Equity Absolute Return Fund continued Contracts For Difference as at 31 May 2014 Holding Commitment Holding Commitment United Kingdom continued 266,813 Barclays Plc 805,943 3,208 62,311 Barratt Developments Plc 271,641 (8,513) 28,945 BBA Aviation Plc 111,808 1,987 78,048 Bellway Plc 1,318,380 (40,809) 208,050 Berendsen Plc 2,562, , ,505 Berkeley Group Holdings Plc 3,014,256 (10,776) 37,944 Betfair Group Plc 469,281 17,695 (129,083) BG Group Plc (1,946,385) (16,481) 61,337 BHP Billiton Plc 1,415,776 (26,554) 347,389 Blinkx Plc 309,632 (64,275) (55,149) Bodycote Plc (510,195) (29,712) 116,032 Bodycote Plc 1,073,437 44,284 (526,595) boohoo.com Plc (322,467) 6,946 1,676,609 Booker Group Plc 2,906,317 (149,250) 123,963 Bovis Homes Group Plc 1,158,238 (22,467) (43,575) Bovis Homes Group Plc (407,139) 15,525 32,706 BowLeven Plc 13,771 (222) (328,409) BP Plc (2,032,731) 16,722 46,362 BP Plc 286,964 (1,510) 30,856 British American Tobacco Plc 1,366,772 63,562 (25,143) British American Tobacco Plc (1,113,713) (24,555) 14,901 British Land Co Plc (Reit) 131,166 2, ,703 British Sky Broadcasting Group Plc 2,767,723 36, ,281 Britvic Plc 2,616, , ,438 BT Group Plc 1,222,930 67,114 (47,766) BTG Plc (351,753) (31,326) 1,203 Bunzl Plc 24,684 (142) (132,239) Bunzl Plc (2,713,364) 3,051 17,007 Burberry Group Plc 319, (649) Burberry Group Plc (12,200) 15 (288,064) Bwin.Party Digital Entertainment Plc (420,016) 21, ,031 Cable & Wireless Communications Plc 312,189 (2,627) 311,902 Cairn Energy Plc 758,083 60, ,955 Capita Plc 2,969,084 61,223 (157,546) Capital & Counties Properties Plc (654,661) (15,201) 516,777 Capital & Counties Properties Plc 2,147,395 (2,829) 49,924 Carillion Plc 217,395 4,517 (150,045) Carillion Plc (653,375) 21,523 (19,228) Carnival Plc (568,514) (4,495) 31 Carnival Plc ,531 Catlin Group Ltd 454,342 3, ,979 Centamin Plc 369,559 15,685 (225,957) Centrica Plc (929,052) (26,066) 367,599 Centrica Plc 1,511,432 42,093 (41,488) Cineworld Group Plc (175,101) (5,739) 223,463 Clinigen Healthcare Ltd 1,217,030 (67,591) 56,418 Close Brothers Group Plc 915,553 (42,418) (100,541) Close Brothers Group Plc (1,631,583) 73,148 (686,702) Cobham Plc (2,675,869) (102,695) 106,804 Coca-Cola HBC AG 1,822,506 (57,447) 15,042 Colt Group SA 26,370 2,445 (115,541) Compass Group Plc (1,413,355) (86,783) 4,015 Costain Group Plc 13, ,905 Cranswick Plc 199,745 11,266 (88,523) CRH Plc (1,795,353) (22,858) (115,935) Croda International Plc (3,735,429) (92,873) 161,795 CSR Plc 1,188,489 70,156 55,293 Daily Mail & General Trust Plc 'A' 598,871 9,842 (108,468) Dairy Crest Group Plc (621,413) (12,018) 9,923 Dart Group Plc 33,670 1,249 (1,115,904) Darty Plc (1,210,692) 151,483 56,170 DCC Plc 2,412, ,908 87,600 De La Rue Plc 925,640 33,753 1,324,981 Debenhams Plc 1,248,410 (30,368) (63,829) Dechra Pharmaceuticals Plc (544,394) (10,950) United Kingdom continued 43,713 Derwent London Plc (Reit) 1,466,044 15,158 (396,197) Devro Plc (1,244,498) (162,882) (271,447) Diageo Plc (6,402,343) (363,405) (207,416) Dialight Plc (2,284,769) 121,770 36,680 Dignity Plc 638,817 14,260 (25,690) Diploma Plc (201,343) 4, ,790 Direct Line Insurance Group Plc 370,358 13, ,106 Dixons Retail Plc 391,208 23,538 (137,098) Domino Printing Sciences Plc (1,298,400) (9,799) (145,534) Domino's Pizza Group Plc (1,002,841) (92,976) 179,116 Domino's Pizza Group Plc 1,234, ,080 87,096 Dragon Oil Plc 649,413 13, ,602 Drax Group Plc 1,699,114 (33,122) (125,104) Drax Group Plc (963,572) 43,774 (698,764) DS Smith Plc (2,728,799) (53,746) 28,542 Dunelm Group Plc 322, ,381 easyjet Plc 101,215 (1,425) (340,620) Electrocomponents Plc (1,202,671) 354 (132,374) Elementis Plc (466,739) (19,962) 67,485 Elementis Plc 237,946 8,766 30,033 EnQuest Plc 51, (643,781) Entertainment One Ltd (2,358,558) (111,496) (327,057) Essar Energy Plc (281,458) (13,592) 93,851 Essentra Plc 912,080 (1,273) 537,353 Evraz Plc 694,972 15,569 (141,005) Evraz Plc (182,365) (6,502) (25,103) Exova Group Plc (77,145) (611) (118,121) Experian Plc (1,502,732) 105, ,389 Experian Plc 3,121,832 (116,212) 4,654 Faroe Petroleum Plc 7,789 (411) (294,257) Fenner Plc (1,262,538) 207, ,785 Ferrexpo Plc 504,551 (36,159) (3,639) Fidessa Group Plc (104,373) (5,631) (1,531) Firstgroup Plc (2,648) (139) 425,475 Firstgroup Plc 735,970 47,540 (23,859) Flybe Group Plc (42,238) (5,569) (74,868) Fresnillo Plc (745,544) 27, ,795 Friends Life Group Ltd 730,194 37,933 (1,277,173) G4S Plc (3,928,521) 341 (27,374) Galliford Try Plc (380,621) 14,931 (30,517) Genel Energy Plc (393,934) (4,789) 15,107 Genus Plc 198,726 1,746 3,587 GKN Plc 17, (535,832) GKN Plc (2,580,983) (78,280) 100,138 Go-Ahead Group Plc 2,719, ,848 64,732 Grainger Plc 175,875 (657) 352,337 Great Portland Estates Plc (Reit) 2,830,714 95,376 (43,622) Great Portland Estates Plc (Reit) (350,464) (6,608) (224,634) Greencore Group Plc (805,994) (52,293) 100,113 Greene King Plc 1,048,630 (7,292) 148,378 Greggs Plc 948,560 42, ,740 Gulf Keystone Petroleum Ltd 812,110 10,163 (47,871) GW Pharmaceuticals Plc (205,984) (7,771) 311,065 Halfords Group Plc 1,868, ,131 (3,814) Halfords Group Plc (22,910) ,464 Halma Plc 1,362,379 36,499 (45,374) Hammerson Plc (Reit) (332,465) (420) 301,053 Hammerson Plc (Reit) 2,205, ,831 (70,909) Hargreaves Lansdown Plc (1,062,348) (32,806) (509,339) Hays Plc (939,270) (13,816) 635 Henderson Group Plc 1, (542,736) Henderson Group Plc (1,668,095) (68,499) (5,341) Heritage Oil Plc (20,874) (1,326) 31,221 Hikma Pharmaceuticals Plc 648,289 43,163 (102,867) Hiscox Ltd (866,281) 37,436 The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 121

124 BlackRock European Diversified Equity Absolute Return Fund continued Contracts For Difference as at 31 May 2014 Holding Commitment Holding Commitment United Kingdom continued United Kingdom continued 12,771 Hiscox Ltd 107,549 (2,118) (135,218) Lonmin Plc (436,205) 15,377 (235) Hochschild Mining Plc (431) ,646 Lookers Plc 268,071 3,024 23,516 Home Retail Group Plc 55,216 (3,134) (72,822) Majestic Wine Plc (415,182) 9,222 (1,429) Home Retail Group Plc (3,355) ,342 Man Group Plc 160,826 3, ,177 Howden Joinery Group Plc 2,596,096 (9,826) (267,072) Man Group Plc (327,024) (11,521) (246,825) HSBC Holdings Plc (1,909,585) (94,043) 70,412 Marks & Spencer Group Plc 386,423 (8,749) (371,219) Hunting Plc (3,730,869) 93,520 (108,454) Marston's Plc (202,533) (8,354) (70,185) ICAP Plc (343,588) 9,530 (332,378) Mears Group Plc (1,940,966) 94,581 40,179 IG Group Holdings Plc 297,117 (7,031) 129,610 Mecom Group Plc 181,148 (12,264) (41,479) IG Group Holdings Plc (306,730) 11, Meggitt Plc 1, ,493 IGAS Energy Plc 57,997 (2,183) (133,477) Meggitt Plc (791,764) (62,737) (986,789) Imagination Technologies Group Plc (2,828,108) (503,905) 607,820 Melrose Industries Plc 2,090,811 (21,961) (2,188) IMI Plc (42,770) (1,366) (829,887) Melrose Industries Plc (2,854,689) 26,465 3,665 Imperial Tobacco Group Plc 121,565 7,578 (21,643) Merlin Entertainments Plc (96,586) (74) (88,463) Imperial Tobacco Group Plc (2,934,240) (142,028) (135,726) Michael Page International Plc (759,719) 12,558 7,028 Inchcape Plc 53, (113,782) Millennium & Copthorne Hotels Plc (800,832) (32,252) (182,421) Inchcape Plc (1,400,552) 21, ,416 Mitchells & Butlers Plc 984,869 (33,971) (1,533) Infinis Energy Plc (3,928) 1,017 (2) Mitchells & Butlers Plc (10) 229 Informa Plc 1, (322,338) Mitie Group Plc (1,329,524) (76,431) (343,185) Informa Plc (2,168,620) (133,746) 22,328 Mitie Group Plc 92,095 6, ,634 Inmarsat Plc 1,553,315 18,579 (35,874) Mondi Plc (473,670) (42,960) (22,947) Inmarsat Plc (204,106) (914) 121,519 Mondi Plc 1,604, ,290 (1,416,897) Innovation Group Plc (583,546) (38,924) 970,352 Moneysupermarket.com Group Plc 2,105,553 4,009 33,290 InterContinental Hotels Group Plc 959,320 43,912 (168,899) Monitise Plc (136,526) (12,852) (21,701) Intermediate Capital Group Plc (111,999) (1,130) 233,627 Monitise Plc 188,847 (3,121) 414,248 Intermediate Capital Group Plc 2,137,937 (94,587) 105,669 Morgan Sindall Group Plc 1,060,059 42,618 (65,244) International Consolidated Airlines (407,922) N Brown Group Plc (2,349,518) (25,628) Group SA (316,191) 7,064 (656,226) Nanoco Group Plc (774,492) 154, ,587 International Consolidated Airlines (213,557) National Express Group Plc (724,103) (3,846) Group SA 642,554 17, ,869 National Express Group Plc 670,910 (2,817) 43,138 International Personal Finance Plc 320,854 21, National Grid Plc 3, (146) International Personal Finance Plc (1,086) (17) (253,812) National Grid Plc (2,780,737) (185,964) (38,397) Intertek Group Plc (1,373,670) 13,507 8,049 Next Plc 655,076 11,706 (432,706) Intu Properties Plc (Reit) (1,675,697) (24,702) 4,021 NMC Health Plc 23,852 (998) (194,535) Investec Plc (1,239,905) (79,752) (385,716) Northgate Plc (2,489,540) (98,271) (6,372,728) IQE Plc (1,723,223) 44,505 (221,226) Ocado Group Plc (1,045,786) (192,511) 155,456 ITE Group Plc 445,876 10,983 (104,172) Old Mutual Plc (259,851) (4,001) 1,175,010 ITV Plc 2,647,867 83, ,696 Ophir Energy Plc 982,432 20,993 (423,205) ITV Plc (953,686) (54,855) 575,986 Optimal Payments Plc 2,747, ,923 (11,950) J D Wetherspoon Plc (119,881) 2,722 (95,189) Oxford Instruments Plc (1,524,836) (35,213) 345,240 J Sainsbury Plc 1,456,668 57, ,281 Pace Plc 688,168 26,341 (274) J Sainsbury Plc (1,156) (37) 454,528 Paragon Group of Cos Plc 2,079,836 70, Jardine Lloyd Thompson Group Plc 10,241 (212) (880) PayPoint Plc (11,370) 800 7,408 John Wood Group Plc 71,675 2,759 (83,494) Pearson Plc (1,193,788) (18,350) (5,653) Johnson Matthey Plc (225,798) 3,491 4,005,093 Pendragon Plc 1,452,535 (143,368) 452,031 Jupiter Fund Management Plc 2,224,569 86, ,577 Pennon Group Plc 2,328,433 58,471 (22,360) Just Eat Plc (65,837) (1,185) (211,601) Pennon Group Plc (2,039,510) (88,145) (292) Kcom Group Plc (333) (333) 86,319 Persimmon Plc 1,409,278 8, ,235 Keller Group Plc 2,474,273 (36,664) 16,624 Petrofac Ltd 257,717 (20,308) (1,771,929) Kenmare Resources Plc (221,936) 79,504 15,457 Playtech Plc 128,174 9, ,078 Kentz Corp Ltd 2,145, ,010 (187,224) Polyus Gold International Ltd (426,395) (2,632) (130,038) Kier Group Plc (2,725,755) (93,029) (573,655) Premier Farnell Plc (1,495,835) 52,703 24,738 Kingfisher Plc 119,370 (5,788) (131,158) Premier Foods Plc (96,747) (12,257) (15,873) Kingfisher Plc (76,593) 3, ,134 Premier Oil Plc 760,903 28, ,779 Ladbrokes Plc 352,746 21,207 (145,572) Premier Oil Plc (632,465) (43,560) (214,072) Ladbrokes Plc (402,138) (20,029) (31,395) Primary Health Properties Plc (Reit) (134,607) (356) (383,423) Laird Plc (1,402,353) (96,838) (96,328) Provident Financial Plc (2,484,564) (184,764) (76,498) Lancashire Holdings Ltd (609,421) 40,093 (66,574) Prudential Plc (1,135,202) (32,963) (43,035) Land Securities Group Plc (Reit) (566,635) (19,094) (88,526) PZ Cussons Plc (383,203) 23,334 (46) Lavendon Group Plc (126) 726,703 QinetiQ Group Plc 1,884, ,596 (21,559) Legal & General Group Plc (61,093) (1,999) (884) Quadrise Fuels International Plc (361) 43 2,936,832 Lloyds Banking Group Plc 2,795, ,741 1,246,503 Quindell Portfolio Plc 296,452 (3,438) (473,205) London Mining Plc (226,885) 312,972 1,202,701 Quintain Estates & Development Plc 1,404,667 14,797 34,952 London Stock Exchange Group Plc 841,350 61,199 7,322 Randgold Resources Ltd 397,062 (3,688) 122 BlackRock Strategic Funds (BSF)

125 BlackRock European Diversified Equity Absolute Return Fund continued Contracts For Difference as at 31 May 2014 Holding Commitment Holding Commitment United Kingdom continued 6,595 Rathbone Brothers Plc 169,130 17,205 (70,167) Reckitt Benckiser Group Plc (4,399,418) (138,943) (241,813) Reed Elsevier Plc (2,839,064) (274,172) (651) Regenersis Plc (2,667) 49 (165,213) Regus Plc (391,804) 26,348 (5,361) Renishaw Plc (111,450) 390 (2,019,529) Rentokil Initial Plc (2,942,121) 3, ,784 Restaurant Group Plc/The 891,264 16,386 (419,558) Rexam Plc (2,717,716) (51,982) (789) Ricardo Plc (6,646) (24) 165,611 Rightmove Plc 4,660,442 (60,189) 36,340 Rio Tinto Plc 1,374,689 (62,510) 38,559 Rockhopper Exploration Plc 44,916 (1,688) 28,021,410 Rolls Royce Holdings Plc (Pref) 34,449 34, ,928 Rolls-Royce Holdings Plc 3,140,256 29,691 73,077 Rotork Plc 2,360,113 57,094 (9,167) Rotork Plc (296,060) (987) 8,874 Royal Bank of Scotland Group Plc 37,672 2,124 (730,031) Royal Bank of Scotland Group Plc (3,099,096) (156,096) (75,109) Royal Dutch Shell Plc 'B' (2,245,217) 56,977 97,693 RPC Group Plc 734,192 (7,939) (205,326) RPS Group Plc (731,786) 3,707 (34) RSA Insurance Group Plc (201) 2 1 RSA Insurance Group Plc (Right)* 9,173 SABMiller Plc 373,785 2,637 70,733 SafeStyle UK Plc 176,603 11,909 (369,196) Sage Group Plc /The (1,877,282) (57,085) 235,183 Salamander Energy Plc 429,363 19,658 (16,350) Savills Plc (127,137) (7,815) (10,619) Schroders Plc (341,387) (6,366) (276,295) SDL Plc (1,097,154) (72,974) (300,707) Segro Plc (Reit) (1,354,907) (47,488) 184,144 Senior Plc 672,801 32,454 (137,605) Serco Group Plc (612,569) (12,717) (79,591) Shaftesbury Plc (Reit) (655,099) (5,442) 50,135 Shaftesbury Plc (Reit) 412,652 5,371 27,273 Shire Plc 1,147,039 5, ,893 SIG Plc 1,263,979 49,193 (830,992) Sirius Minerals Plc (119,315) (23,811) (38,477) Smith & Nephew Plc (496,078) (53,414) (116,868) Smiths Group Plc (1,903,722) (8,695) 607,228 Smiths News Plc 1,481, ,477 62,359 Soco International Plc 321, (9,643) Spectris Plc (271,244) ,714 Speedy Hire Plc 122,092 3,318 83,430 Spirax-Sarco Engineering Plc 2,958,806 17,530 (55,381) Spirent Communications Plc (71,217) (7,181) (29,236) Sports Direct International Plc (287,541) (7,122) 147,344 SSE Plc 2,824,039 90,427 (106,336) SSE Plc (2,038,067) (9,956) (86,548) St James's Place Plc (835,786) (24,933) 5,488 ST Modwen Properties Plc 24, ,488 Stagecoach Group Plc 1,773,390 97,027 (101,018) Stagecoach Group Plc (482,234) (21,219) United Kingdom continued (81,352) Standard Chartered Plc (1,344,187) (145,568) (12,213) Standard Life Plc (60,074) (3,298) 65,455 Stock Spirits Group Plc 239,198 11,115 9,737 SuperGroup Plc 137, ,766 Synergy Health Plc 495,973 6,226 (268,635) Synthomer Plc (868,912) (6,299) (89,713) TalkTalk Telecom Group Plc (354,272) (3,969) 277,357 TalkTalk Telecom Group Plc 1,095, , ,753 Tate & Lyle Plc 3,103,549 7, ,202 Taylor Wimpey Plc 306,366 2,493 40,901 Ted Baker Plc 969,970 57, ,682 Telecity Group Plc 1,486,325 34,853 (19,811) Telecom Plus Plc (371,179) 1,836 (830,737) Tesco Plc (3,107,781) (81,417) (127,745) Thomas Cook Group Plc (258,189) (7,813) 151,612 Travis Perkins Plc 3,123,639 (7,513) 331,913 Trinity Mirror Plc 651,864 (52,388) (303,422) TT electronics Plc (766,569) (64,126) 422,484 TUI Travel Plc 2,134,736 (65,068) (666,511) Tullett Prebon Plc (2,394,306) 175,934 5 Tullett Prebon Plc 18 (1) 203,946 Tullow Oil Plc 2,113,032 (23,922) (133,492) Tyman Plc (470,599) 14, ,501 UBM Plc 909,359 34,975 (15,238) UBM Plc (126,545) 1,203 37,596 UDG Healthcare Plc 158,028 (2,356) (113,702) Ultra Electronics Holdings Plc (2,584,622) (154,993) 128,331 United Utilities Group Plc 1,363, ,049 (83,971) United Utilities Group Plc (891,965) (61,153) (29,684) Utilitywise Plc (110,208) 5,489 (127,847) Vectura Group Plc (204,720) (326) (128,200) Vedanta Resources Plc (1,747,880) (64,740) (261,463) Vesuvius Plc (1,462,239) (69,341) 129,668 Vesuvius Plc 725,172 18,231 84,086 Victrex Plc 1,864,886 (18,647) 234,181 Vodafone Group Plc 603,153 (20,936) 4,751 Weir Group Plc/The 153, (65,908) WH Smith Plc (841,061) 28,379 9,965 Whitbread Plc 511,722 16,427 (30,576) William Hill Plc (133,482) (471) 994 William Hill Plc 4, ,065 WM Morrison Supermarkets Plc 183,877 (5,125) (712) Wolseley Plc (29,105) ,209 Workspace Group Plc (Reit) 488,390 8,658 (156,400) WPP Plc (2,470,768) (47,198) 103,566 WS Atkins Plc 1,689,586 38, ,975 Xaar Plc 1,677, ,953 1,204,195 Xchanging Plc 2,172,536 (113,920) (2,800,955) 371,895 Total market value ( underlying exposure 1,365,331,152) (70,313) 626,777 Note: The net unrealised appreciation attributed to these transactions is included in the Statement of Net Assets (see Note 2(d)). Barclays Bank, Goldman Sachs and Morgan Stanley are the counterparties to these Contracts for Difference. * Investments which are less than 0.5 have been rounded down to zero. The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 123

126 BlackRock European Opportunities Extension Fund Portfolio of Investments as at 31 May 2014 Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding Market % of Net Assets Holding Market % of Net Assets COMMON STOCKS (SHARES) Austria 83,141 Schoeller-Bleckmann Oilfield Equipment AG 7,381, ,381, Belgium 62,965 Anheuser-Busch InBev NV 5,077, ,181 Arseus NV 6,062, ,872 KBC Groep NV 12,761, ,561 Kinepolis Group NV 5,750, ,974 Melexis NV 809, ,461, Denmark 400,667 GN Store Nord A/S 8,079, ,222 Novo Nordisk A/S 'B' 8,609, ,780 Novozymes A/S 'B' 5,513, ,751 Royal UNIBREW 14,001, ,204, France 112,111 Legrand SA 5,168, ,495 MGI Digital Graphic Technology 848, ,016, Germany 120,876 Bayer AG 12,764, ,224 Continental AG 8,864, ,899 LEG Immobilien AG 9,398, ,883 Norma Group SE 8,081, ,484 Porsche Automobil Holding SE (Pref) 8,191, ,111 SHW AG 2,750, ,050, Ireland 277,280 DCC Plc 11,907, ,288 Irish Continental Group Plc 10,158, ,174 Kingspan Group Plc 3,306, ,371, Italy 326,194 Ei Towers SpA 13,256, ,256, Jersey 17,800 WANdisco Plc 107, , Netherlands 102,063 ASML Holding NV 6,430, ,546 Beter Bed Holding NV 3,674, ,380,636 ING Groep NV - CVA 14,186, ,011 TKH Group NV 6,039, ,331, Sweden 338,431 Assa Abloy AB 'B' 12,616, ,448 Hexagon AB 'B' 13,165, ,074,199 Nordea Bank AB 11,645, ,427, Switzerland 156,186 Actelion Ltd Reg 11,359, ,359 Cembra Money Bank AG 10,796, ,771 Clariant AG Reg 9,108, ,993 Daetwyler Holding AG 6,764, ,489 Givaudan SA Reg 10,199, ,018 Holcim Ltd Reg 9,980, ,336 Novartis AG Reg 11,524, ,077 Roche Holding AG 21,038, ,053 Syngenta AG Reg 16,140, ,348 U-Blox AG 6,764, ,946 UBS AG Reg 11,500, ,177, United Kingdom 904,830 Restaurant Group Plc/The 6,846, ,846, Total Common Stocks (Shares) 368,632, Total Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market 368,632, Funds Ireland 46,348,209 Institutional Cash Series Plc - Institutional Euro Assets Liquidity Fund 1 46,348, Total Funds 46,348, Securities portfolio at market value 414,980, Other Net Assets 97,236, Total Net Assets () 512,216, This fund is managed by BlackRock. 124 BlackRock Strategic Funds (BSF)

127 BlackRock European Opportunities Extension Fund continued Contracts For Difference as at 31 May 2014 Holding Commitment Holding Commitment Belgium (42,942) Barco NV (2,403,893) (33,557) (80,633) Colruyt SA (3,317,241) (94,186) (33,714) EVS Broadcast Equipment SA (1,310,969) 241,452 (71,054) Umicore SA (2,507,496) 140,144 (9,539,599) 253,853 Bermuda (289,761) Vostok Nafta Investment Ltd SDR (1,602,561) (181,423) (1,602,561) (181,423) Denmark (56,924) FLSmidth & Co A/S (2,427,649) (260,555) (2,427,649) (260,555) Finland (192,576) Fortum OYJ (3,433,630) (276,117) (136,588) Neste Oil OYJ (2,052,918) (18,341) (71,532) Nokian Renkaat OYJ (2,246,105) (126,454) (74,290) Stockmann OYJ Abp 'B' (883,308) (27,025) (8,615,961) (447,937) France 137,017 Cap Gemini SA 7,305, ,440 (103,466) Carrefour SA (2,760,990) 25,161 (27,620) Essilor International SA (2,126,464) (42,538) (16,726) LVMH Moet Hennessy Louis Vuitton SA (2,425,270) (224,354) 206,919 Schneider Electric SA 14,198, , ,730 Societe Generale SA 12,565,695 (781,964) (85,470) Veolia Environnement SA (1,193,589) (127,457) 233,378 Vinci SA 12,625, ,717 38,189, ,805 Germany (58,245) Bauer AG (1,080,736) 21,587 (69,042) Delticom AG (2,353,987) (34,314) (77,427) Deutsche Bank AG (2,296,872) 330,050 (71,054) Evonik Industries AG (2,059,500) (68,286) (134,793) Hamburger Hafen und Logistik AG (2,503,780) (76,401) (36,050) Hugo Boss AG (3,745,595) (371,877) (347,324) Kontron AG (1,756,765) (16,002) (19,064) Merck KGaA (2,401,111) (91,937) (102,577) Software AG (2,906,519) (212,848) (131,537) Suedzucker AG (1,980,947) 485,403 (22,574) XING AG (2,136,426) 15,686 (25,222,238) (18,939) Greece 300,019 OPAP SA 3,780, ,944 3,780, ,944 Ireland 1,924,106 Ryanair Holdings Plc 13,843, ,976 13,843, ,976 Italy (352,454) Davide Campari-Milano SpA (2,209,886) (28,240) (263,527) Fiat SpA (2,022,570) 56,544 (28,645) Tod's SpA (2,835,855) 14,833 (7,068,311) 43,137 Jersey (173,159) Petrofac Ltd (2,684,430) (95,158) (2,684,430) (95,158) Netherlands (49,656) Fugro NV - CVA (2,098,463) (41,243) (88,320) Koninklijke Vopak NV (3,318,182) 291,988 (904) Nutreco NV (29,172) (29,172) (13,198) SNS REAAL NV 12,010 (5,445,817) 233,583 Norway (76,445) Norwegian Air Shuttle AS (2,331,855) (133,803) (63,132) TGS Nopec Geophysical Co ASA (1,508,228) (158,751) (3,840,083) (292,554) Portugal 677,771 Jeronimo Martins SGPS SA 8,489,082 (204,704) 8,489,082 (204,704) Spain (597,010) Distribuidora Internacional de Alimentacion SA (4,015,489) (212,554) 228,301 Grifols SA 6,964, , ,822 Inditex SA 10,782,913 (139,310) (79,705) Viscofan SA (3,354,784) (334,665) 10,376,962 (357,730) Sweden (114,267) Axis Communications AB (2,463,734) 163,094 (291,148) Elekta AB 'B' (2,765,433) 161,035 (87,137) Hennes & Mauritz AB 'B' (2,726,579) (25,818) (132,884) Swedish Match AB (3,423,834) (384,935) (330,590) TelefonaktiebolAGet LM Ericsson 'B' (3,036,369) 66,364 (280,461) Volvo AB 'B' (3,005,017) (10,758) (17,420,966) (31,018) Switzerland (148,793) ABB Ltd Reg (2,595,774) 130,879 (42,052) DKSH Holding AG (2,416,124) (89,422) (96,128) Julius Baer Group Ltd (3,080,021) 214,903 (207,060) OC Oerlikon Corp AG (2,323,387) 113,690 (10,415,306) 370,050 United Kingdom (458,937) Aberdeen Asset Management Plc (2,490,447) (224,745) (253,572) ARM Holdings Plc (2,869,572) 30,340 (439,163) Ashmore Group Plc (1,911,805) (193,138) 332,315 AstraZeneca Plc 17,567,517 (621,737) 540,904 Barratt Developments Plc 2,358,039 (181,837) 306,085 British American Tobacco Plc 13,554,320 1,525, ,894 BTG Plc 5,168,807 82,740 2,463,174 Card Factory Plc 6,056,435 (514,073) 713,790 Daily Mail & General Trust Plc 7,722,272 (770,879) (117,113) Diageo Plc (2,761,504) (109,089) 944,620 Diploma Plc 7,403,368 (515,768) 863,615 Hargreaves Lansdown Plc 12,938,503 (1,894,864) 543,065 Imperial Tobacco Group Plc 18,012,987 2,214,665 (344,531) Infinis Energy Plc (882,710) 178, ,041 Inmarsat Plc 8,859,470 (132,680) The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 125

128 BlackRock European Opportunities Extension Fund continued Contracts For Difference as at 31 May 2014 Holding Commitment Holding Commitment United Kingdom continued (79,608) Intertek Group Plc (2,848,011) 72,526 (2,959,292) IQE Plc (800,391) (5,614) (1,413,269) J Sainsbury Plc (5,962,990) (85,555) 244,542 Johnson Matthey Plc 9,770, ,724 (535,575) Just Eat Plc (1,576,949) 21, ,173 London Stock Exchange Group Plc 5,348,056 42,097 (661,793) McBride Plc (814) (814) 1,634,438 National Express Group Plc 5,541,849 (26,580) (949,687) Pets at Home Group Plc (2,429,071) 309,800 (188,268) Rolls-Royce Holdings Plc (2,402,514) (4,499) United Kingdom continued (517,542) Royal Bank of Scotland Group Plc (2,197,657) (235,179) 793,387 Royal Dutch Shell Plc 'A' 22,872,830 1,306,558 2,961,292 Senior Plc 10,841, ,422 1,389,974 Sports Direct International Plc 13,670, ,777 (131,213) Synergy Health Plc (2,048,673) 138, ,504,462 1,814,684 Total market value ( underlying exposure 399,433,291) 116,001,427 2,662,014 Note: The net unrealised appreciation attributed to these transactions is included in the Statement of Net Assets (see Note 2(d)). Deutsche Bank and JPMorgan are the counterparties to these Contracts for Difference. Time Deposit as at 31 May 2014 Market % TIME DEPOSITS ING Bank NV 77,260, Lloyds Bank Plc 6,940, Total Time Deposits 84,200, Open Forward Foreign Exchange Transactions as at 31 May 2014 Purchases Sales Date 48,856,956 CHF 59,504,352 13/6/ ,455 18,306,360 DKK 136,607,367 13/6/2014 1,280 6,357,328 SEK 57,459,122 13/6/ ,276 GBP 109,981, ,020,595 13/6/2014 1,183,139 NOK 56,112,980 6,816,239 13/6/ ,386 Net unrealised appreciation ( underlying exposure 215,456,992) 1,399,536 Note: The net unrealised appreciation attributed to these transactions is included in the Statement of Net Assets (see Note 2(d)). State Street Bank London is the counterparty to these Open Forward Foreign Exchange Transactions. Sector Breakdown as at 31 May 2014 % of Net Assets* Consumer, Non-cyclical Financial Industrial Consumer, Cyclical Funds 9.05 Basic Materials 8.00 Communications 5.49 Energy 1.44 Technology 1.43 Other Net Assets * Based on the market value of the Portfolio of Investments except for Contract For Difference, which are based on the commitment (where applicable). 126 BlackRock Strategic Funds (BSF)

129 BlackRock Fixed Income Strategies Fund Portfolio of Investments as at 31 May 2014 Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding Market % Holding Market % BONDS 597,000 Australia CNOOC Curtis Funding No 1 Pty Ltd Reg 4.50% 3/10/ , , Austria 400,000 BAWAG PSK Bank fuer Arbeit und Wirtschaft und Oesterreichische Postsparkasse AG 8.125% 30/10/ , ,000,000 UniCredit Bank Austria AG 2.625% 30/1/2018 2,078, ,000,000 Vienna Insurance Group AG / Wiener Versicherung Gruppe FRN 9/10/2043 1,122, ,672, Belgium 900,000 Anheuser-Busch InBev NV FRN 29/3/ , ,100,000 Belfius Bank SA/NV 1.125% 22/5/2017 3,108, ,000,000 KBC Groep NV FRN 29/3/2049 2,007, ,000 KBC Groep NV FRN 29/3/ , ,768, ,000,000 BRL 4,503, , ,000 Bermuda Fidelity International Ltd 6.875% 24/2/2017 2,262, ,262, Brazil Brazil Letras do Tesouro Nacional 1/1/2016 (Zero Coupon) 1,237, ,237, British Virgin Islands CNPC General Capital Ltd Reg 3.40% 16/4/ , Wanda Properties International Co Ltd 7.25% 29/1/ , , Canada 167,000 Barrick Gold Corp 3.85% 1/4/ , ,000 Barrick Gold Corp 4.10% 1/5/ , , ,000 1,260,000 1,100,000 GBP 400,000 GBP 440,411 GBP 779,491 Cayman Islands China Resources Land Ltd Reg 4.625% 19/5/ , Petrobras International Finance Co 5.75% 20/1/ , Principal Financial Global Funding II LLC 4.50% 26/1/2017 1,194, Punch Taverns Finance B Ltd 'A6' 5.943% 30/12/ , Punch Taverns Finance B Ltd 'A8' FRN 30/6/ , Punch Taverns Finance B Ltd Reg 7.369% 30/6/2022 1,020, ,374, ,609,000 1,190,000 Cyprus Cyprus Government International Bond 4.625% 3/2/2020 8,446, ,446, Czech Republic Czech Republic International 3.875% 24/5/2022 1,379, ,379, Denmark 675,000 Danske Bank A/S FRN 31/10/ , , France 1,700,000 Auto ABS Compartiment 'A' FRN 27/1/2023 1,703, ,175,000 BNP Paribas SA 2.375% 20/5/2024 1,187, ,000 BNP Paribas SA FRN 20/3/ , ,000 BPCE SA 1.75% 14/3/ , ,200,000 CNP Assurances FRN 5/6/2045 1,206, ,000,000 Compagnie de Financement Foncier SA 2.00% 7/5/2024 4,064, ,200,000 Electricite de France FRN 29/1/2049 1,247, ,789 FCT Copernic 'A1' FRN 25/9/ , ,000 FCT GINKGO Compartment Sales Finance 'A' FRN 23/12/ , ,707,887 France Government Bond OAT 0.25% 25/7/ ,658, ,000 GDF Suez 1.50% 1/2/ , ,800,000 GDF Suez 2.375% 19/5/2026 3,799, ,300,000 GDF Suez FRN 29/6/2049 3,318, ,000 Kering 3.75% 8/4/ , ,000 Master Credit Cards Pass Compartment France 'A' FRN 25/10/ , ,750,000 Numericable Group SA Reg 5.375% 15/5/2022 1,850, ,000 Renault SA 3.125% 5/3/ , ,181, Germany 2,875,000 Bayerische Landesbank 1.75% 8/4/2024 2,913, ,000,000 Bundesrepublik Deutschland 2.50% 15/8/ ,840, ,000 Daimler AG 1.75% 21/5/ , GBP 900,000 Deutsche Bank AG FRN 30/4/2049 1,113, ,000,000 Deutsche Bank AG FRN (Perpetual) 3,047, ,950,000 Deutsche Bank AG/London 3.70% 30/5/2024 3,649, ,000,000 Driver Twelve GmbH 'B' FRN 21/6/2020 3,001, ,000,000 German Treasury Bill 0.00% 24/9/2014 (Zero Coupon) 16,999, ,000,000 German Treasury Bill 0.00% 28/1/2015 (Zero Coupon) 73,981, ,038,961 German Treasury Bill 0.00% 25/2/2015 (Zero Coupon) 86,008, The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 127

130 BlackRock Fixed Income Strategies Fund continued Portfolio of Investments as at 31 May 2014 Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding Market % Holding Market % Germany continued 3,000,000 Landesbank Hessen-Thueringen Girozentrale 0.375% 26/5/2017 2,999, ,850,000 LBBW FRN 27/5/2026 2,850, ,000 Mahle GmbH 2.50% 14/5/ , ,213 Red & Black Auto Germany 2 'A' FRN 15/9/ , ,550 SC Germany Auto 'A' FRN 11/12/ , ,181 SC Germany auto UG haftungsbeschraenkt 'A' FRN 12/3/ , ,186, ,000,000 1,027,000 Greece Hellenic Republic Government Bond (Step-up Coupon) 2.00% 24/2/ , , Indonesia Perusahaan Penerbit SBSN Indonesia Reg 6.125% 15/3/ , , Ireland 100,000 Ardagh Packaging Finance Plc Reg 7.375% 15/10/ , ,425,000 Bank of Ireland 2.00% 8/5/2017 1,419, ,010,000 Bank of Ireland Mortgage Bank 1.875% 13/5/2017 1,038, ,525,000 Bank of Ireland Mortgage Bank 1.75% 19/3/2019 2,586, SEK 12,835,998 Bluestep Mortgage Securities No2 Ltd FRN 10/11/2055 1,415, ,000 Caterpillar International Finance Ltd 1.375% 18/5/ , ,259 Deco 7-Pan Europe 2 Plc 'C' FRN 27/1/ , ,723 Deco 9-Pan Europe 3 Plc 'A2' FRN 27/7/ , ,847,677 Fleet Street Finance Three Plc 'B' FRN 25/10/2016 1,799, ,000,000 GE Capital European Funding 1.625% 15/3/2018 1,029, ,350 German Residential Funding Ltd 'A' FRN 27/11/ , ,534 German Residential Funding Ltd 'B' FRN 27/11/ , ,851 German Residential Funding Ltd 'E' FRN 27/11/ , ,275 German Residential Funding Plc 'A' FRN 27/8/ , ,354 German Residential Funding Plc 'B' FRN 27/8/ , ,924 German Residential Funding Plc 'D' FRN 27/8/ , ,924 German Residential Funding Plc 'E' FRN 27/8/ , ,000,000 Ireland Government Bond 3.40% 18/3/2024 7,476, ,093,111 Opera Germany No 2 Plc 'A' FRN 20/10/2014 1,089, Ireland continued 1,700,000 Opera Germany No2 Plc 'C' FRN 20/10/2014 1,674, ,091 SCF Rahoituspalvelut Ltd 'A' Reg 0.802% 25/5/ , ,100,000 Sibur Securities Ltd Reg 3.914% 31/1/ , ,709,202 Talisman-4 Finance Plc 'B' FRN 22/7/ , ,732,820 Talisman-6 Finance Plc 'A' FRN 22/10/2016 1,687, GBP 1,134,617 Titan Europe Nhp Ltd 'A' FRN 20/1/2017 1,334, ,353, Italy 4,800,000 Assicurazioni Generali SpA 4.125% 4/5/2026 4,950, ,963 AUTO ABS Srl 'A' Reg 2.80% 27/4/ , ,000 Banca Monte dei Paschi di Siena SpA 4.875% 15/9/ , ,825,000 Banca Monte dei Paschi di Siena SpA 2.875% 16/4/2021 8,958, ,865,000 Banca Popolare dell'emilia Romagna SC 3.375% 22/10/2018 5,213, ,353 Berica PMI Srl 1 'A1X' FRN 31/5/ , ,000 Enel SpA FRN FRN 15/1/ , ,110,256 Fondi Immobili Pubblici Funding Srl 'A1' FRN 10/1/2023 1,024, ,807,302 Italy Buoni Poliennali Del Tesoro 2.15% 15/9/2014 1,814, ,622,266 Italy Buoni Poliennali Del Tesoro 2.55% 22/10/2016 2,722, ,424,321 Italy Buoni Poliennali Del Tesoro 2.25% 22/4/2017 2,507, ,892,000 Italy Buoni Poliennali Del Tesoro 2.15% 12/11/ ,477, ,000,000 Italy Buoni Poliennali Del Tesoro 4.50% 1/3/2019 7,935, ,695,000 Italy Buoni Poliennali Del Tesoro 1.65% 23/4/2020 8,778, ,000 Italy Buoni Poliennali Del Tesoro 5.50% 1/11/ , ,000,000 Luxottica Group SpA 4.00% 10/11/2015 1,048, ,000 Telecom Italia SpA 4.50% 20/9/ , GBP 300,000 Telecom Italia SpA 5.875% 19/5/ , ,100,000 UniCredit SpA FRN 10/4/2017 8,098, ,186,000 UniCredit SpA Reg 6.95% 31/10/2022 1,424, ,157, Jersey GBP 1,225,000 AA Bond Co Ltd Reg 9.50% 31/7/2019 1,696, ,350,000 Semper Finance Ltd 'D' FRN 30/9/2084 2,305, ,001, Securities pledged or given in guarantee, see Note 14, for further details. 128 BlackRock Strategic Funds (BSF)

131 BlackRock Fixed Income Strategies Fund continued Portfolio of Investments as at 31 May 2014 Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding Market % Holding Market % Latvia 8,944,000 Republic of Latvia Reg 2.625% 21/1/2021 9,192, ,192, Luxembourg 167,000 ArcelorMittal 6.125% 1/6/ , ,854 Bumper 2 SA 'A' FRN 23/2/ , ,530,000 CNH Industrial Finance Europe SA 2.75% 18/3/2019 1,547, ,292 E-CARAT 'A' FRN 18/7/ , ,111 ECAR 'A' 0.852% 18/11/ , ,000 ECAR 'B' 1.478% 18/11/ , ,000 Gategroup Finance Luxembourg SA Reg 6.75% 1/3/ , ,000 John Deere Bank SA FRN 19/3/ , ,000 Ontex IV SA Reg 7.50% 15/4/ , ,000 Red & Black Auto Lease Germany 1 SA 'A' Reg 0.911% 15/4/ , ,000 Servus Luxembourg Holding SCA Reg 7.75% 15/6/ , ,912 Volkswagen Car Lease '15B' FRN 21/1/ , ,225 Volkswagen Car Lease '16A' FRN 21/7/ , ,000 Volkswagen Car Lease 19 'B' Reg FRN 21/11/ , ,845, Mexico 1,500,000 America Movil SAB de CV 1.00% 4/6/2018 1,495, ,495, Netherlands 700,000 Aegon NV FRN 25/4/ , ,000,000 ASML Holding NV 3.375% 19/9/2023 1,079, ,000 BASF Finance Europe NV 5.00% 26/9/ , ,000 Bharti Airtel International Netherlands BV Reg 5.35% 20/5/ , ,000 BMW Finance NV FRN 4/4/ , ,706 Bumper 4 NL Finance BV 'A' FRN 20/5/ , ,700,000 Cooperatieve Centrale Raiffeisen- Boerenleenbank BA/Netherlands FRN 23/11/2015 5,699, ,150,000 Cooperatieve Centrale Raiffeisen- Boerenleenbank BA/Netherlands FRN 26/5/2026 2,129, GBP 2,200,000 Cooperatieve Centrale Raiffeisen- Boerenleenbank BA/Netherlands 4.625% 23/5/2029 2,697, ,003 E-MAC DE 2009-I BV 'A1' FRN 25/11/ , ,679,000 EDP Finance BV 4.125% 20/1/2021 1,801, Netherlands continued 1,300,000 Grupo Antolin Dutch BV Reg 4.75% 1/4/2021 1,326, ,634 HIGHWAY BV 'A' FRN 26/3/ , ,700,000 ING Bank NV FRN 25/2/2026 4,877, ,000,000 Louis Dreyfus Commodities BV 3.875% 30/7/2018 2,098, ,000 Nederlandse Gasunie NV 0.875% 30/10/ , ,025,000 NN Group NV FRN 8/4/2044 5,262, ,000 North Westerly CLO IV 2013 BV 'A1' FRN 15/1/ , ,471,000 North Westerly CLO IV 2013 BV 'D' Reg FRN 15/1/2026 1,471, ,425,000 PACCAR Financial Europe BV FRN 19/5/2017 1,426, ,000 Roche Finance Europe BV 2.00% 25/6/ , ,414 Storm BV 'A1' FRN 22/3/ , ,390 Storm BV 'A1' FRN 22/8/ , ,418 Storm BV 'A1' FRN 22/10/ , ,000,000 Volkswagen International Finance NV FRN 15/4/2019 1,002, ,230,000 Volkswagen International Finance NV Reg FRN 24/3/2049 2,326, ,000 Volkswagen International Finance NV Reg FRN 29/3/ , ,059, ,000,000 Norway Santander Consumer Bank AS 1.00% 10/6/ , , Portugal 683,634 Atlantes Ltd Atlantes Finance Plc 'A' FRN 20/3/ , ,300,000 Banco Espirito Santo SA 4.00% 21/1/2019 3,398, ,200,000 Banco Santander Totta SA 1.50% 3/4/2017 6,253, ,000 Brisa Concessao Rodoviaria SA 3.875% 1/4/ , ,330,652 GAMMA Sociedade de Titularizacao de Creditos SA Atlantes SME 'A' FRN 28/12/2043 1,339, ,090,000 Portugal Obrigacoes do Tesouro OT 4.75% 14/6/ ,072, ,200,000 Portugal Obrigacoes do Tesouro OT 4.80% 15/6/2020 4,651, ,546,575 TAGUS-Sociedade de Titularizacao de Creditos SA Volta II Electricity Receivables ABS 2.98% 16/2/2018 2,559, ,414,703 Volta Electricity Receivables Reg 4.172% 16/2/2017 1,443, ,821, The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 129

132 BlackRock Fixed Income Strategies Fund continued Portfolio of Investments as at 31 May 2014 Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding Market % Holding Market % 5,300,000 Romania Romanian Government International Bond 5.25% 17/6/2016 5,683, ,683, Slovakia 298,689 Granvia AS 4.781% 30/9/ , , ,932,000 3,255,000 1,750, ,000 Slovenia Slovenia Government Bond 1.75% 9/10/2017 3,968, Slovenia Government Bond 3.00% 8/4/2021 3,304, Slovenia Government Bond 4.625% 9/9/2024 1,946, Slovenia Government Bond 5.125% 30/3/ , ,648, South Korea 200,000 Korea Finance Corp 4.625% 16/11/ , , Spain 700,000 Ayt Cedulas Cajas Global 4.00% 20/12/ , ,500,000 Ayt Cedulas Cajas Global 4.00% 24/3/2021 3,801, ,000,000 Banco Bilbao Vizcaya Argentaria SA 4.25% 15/7/2014 1,004, ,000 Banco Bilbao Vizcaya Argentaria SA 3.00% 9/10/ , ,900,000 Bankia FRN 22/5/2024 8,834, ,700,000 Bankia SA 3.625% 5/10/2016 4,974, ,000,000 Bankia SA 4.25% 25/5/2018 1,109, ,100,000 CaixaBank SA 2.625% 21/3/2024 1,129, ,000,000 Cajas Rurales Unidas SCC 3.75% 22/11/2018 2,141, ,400,000 Cedulas TDA Fondo de Titulizacion de Activos 'A6' 4.25% 10/4/2031 2,437, ,000 Spain Government Bond 2.10% 30/4/ , ,885, Sweden 800,000 Scania CV AB 1.75% 22/3/ , ,530,000 Scania CV AB 1.625% 14/9/2017 2,591, ,407, Switzerland 1,300,000 Credit Suisse AG/London 3.875% 25/1/2017 1,405, ,925,000 UBS AG 5.125% 15/5/2024 2,164, ,570, ,000 Turkey Hazine Mustesarligi Varlik Kiralama AS Reg 2.803% 26/3/ , , United Arab Emirates 555,000 Emirates Airline Reg 4.50% 6/2/ , ,000,000 Glencore Finance Dubai Ltd 2.625% 19/11/2018 2,094, ,497, United Kingdom 1,228,349 Aire Valley Mortgages Plc X FRN 20/9/2066 1,204, GBP 214,900 Annington Finance No 4 Plc 'B3' FRN 10/1/ , GBP 2,325,000 Asset-Backed European Securitisation Transaction Eight Srl 'B' Reg FRN 15/6/2019 2,870, ,000 BP Capital Markets Plc 2.972% 27/2/ , GBP 958,332 Broadgate Financing Plc 'C1' FRN 5/1/2022 1,160, GBP 133,000 Broadgate Financing Plc 'D' FRN 5/10/ , GBP 123,574 Bruntwood Alpha Plc 'A' FRN 15/1/ , GBP 404,265 Bruntwood Alpha Plc 'B' FRN 15/1/ , ,111 Bumper 5 UK Finance Plc 'A1' FRN 20/6/ , GBP 285,000 Co-operative Group Holdings 2011 (Step Coupon) 6.875% 8/7/ , GBP 106,158 E-CARAT 'A' 1.30% 18/6/ , GBP 388,726 E-CARAT 3 Plc 'A' FRN 18/3/ , GBP 278,639 Eddystone Finance Plc 'A2' FRN 19/4/ , GBP 150,000 Enterprise Inns Plc 6.875% 15/2/ , ,400,000 FCE Bank Plc 1.875% 18/4/2019 1,428, GBP 280,000 Gala Group Finance Plc Reg 8.875% 1/9/ , GBP 1,596,132 Greene King Finance Plc 'A5' FRN 15/12/2033 1,961, ,000 HSBC Holdings Plc 5.25% 14/3/ , GBP 295,000 IDH Finance Plc Reg 6.00% 1/12/ , ,144 Leek Finance Number Eighteen Plc 'A2B' FRN 21/9/ , ,340 Leek Finance Number Eighteen Plc 'A2D' FRN 21/9/ , GBP 134,950 London & Regional Debt Securitisation No 1 Plc 'A' FRN 15/10/ , GBP 271,822 London & Regional Debt Securitisation No 2 Plc 'A' FRN 15/10/ , GBP 300,000 Mitchells & Butlers Finance Plc 'C1' 6.469% 15/9/ , GBP 955,000 Mitchells & Butlers Finance Plc 'C2' FRN 15/9/2034 1,056, GBP 798,000 Mitchells & Butlers Finance Plc 'D1' FRN 15/6/ , GBP 23,863 Motor 2012 Plc 'A2' FRN 25/2/ , BlackRock Strategic Funds (BSF)

133 BlackRock Fixed Income Strategies Fund continued Portfolio of Investments as at 31 May 2014 Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding Market % Holding Market % United Kingdom continued GBP 850,000 Nationwide Building Society FRN 11/3/2049 1,071, ,581,000 NBG Finance Plc 4.375% 30/4/2019 2,550, ,700,807 Paragon Mortgages No 7 Plc 'A1C' FRN 15/5/2034 2,595, GBP 285,000 Phones4u Finance Plc Reg 9.50% 1/4/ , GBP 350,125 Precise Mortgage Funding No 1 Plc 'A' FRN 12/3/ , GBP 155,725 Premiertel Plc 'B' 6.175% 8/5/ , GBP 100,000 Priory Group No 3 Plc Reg 7.00% 15/2/ , GBP 1,520,000 Punch Taverns Finance Plc 'A1R' 7.274% 15/4/2022 1,987, GBP 315,785 Punch Taverns Finance Plc 'A2R' 6.82% 15/7/ , GBP 254,412 Residential Mortgage Securities 25 Plc 'A1' FRN 16/12/ , GBP 155,039 Residential Mortgage Securities 26 Plc 'A1' FRN 14/2/ , GBP 200,000 Rochester Financing No 1 Plc 'B' Reg FRN 16/7/ , ,000,000 Royal Bank of Scotland Group Plc 1.50% 28/11/2016 2,028, GBP 1,500,000 Sherwood Castle Funding Series Plc 'A' FRN 15/6/2016 1,842, GBP 139,176 Silk Road Finance Number Three Plc 'A' FRN 21/6/ , GBP 1,972,000 Spirit Issuer Plc 'A2' FRN 28/12/2031 2,303, GBP 674,000 Spirit Issuer Plc 'A6' FRN 28/12/ , ,330,000 SSE Plc FRN (Perpetual) 1,377, GBP 505,000 Stonegate Pub Co Financing Plc Reg FRN 15/4/ , GBP 420,000 Stonegate Pub Co Financing Plc Reg 5.75% 15/4/ , ,256 Taurus 2013 GMF1 Plc 'A' FRN 21/5/ , ,753 Taurus 2013 GMF1 Plc 'B' FRN 21/5/ , ,632 Taurus 2013 GMF1 Plc 'D' FRN 21/5/ , ,418 Taurus 2013 GMF1 Plc 'E' FRN 21/5/ , GBP 250,000 Telereal Securitisation Plc 'B6' FRN 10/12/ , GBP 200,000 Temese Funding 1 Plc 'B' FRN 21/11/ , GBP 385,000 Temese Funding 1 Plc 'C' FRN 21/11/ , GBP 10,636 Turbo Finance Plc 'A' FRN 20/2/ , GBP 249,000 Turbo Finance Plc 'B' 5.50% 20/2/ , GBP 98,283 Turbo Finance 3 Plc 'A' FRN 20/11/ , GBP 451,000 Turbo Finance 3 Plc 'B' FRN 20/11/ , GBP 821,000 GBP 1,930,000 GBP 1,731,350 GBP 2,273,280 GBP 3,106,000 GBP 5,700 United Kingdom continued Turbo Finance 4 Plc 'A' FRN 20/1/2021 1,009, Unique Pub Finance Co Plc/The 7.395% 28/3/2024 2,461, Unique Pub Finance Co Plc/The 5.659% 30/6/2027 2,163, Unique Pub Finance Co Plc/The 'A3' 6.542% 30/3/2021 2,957, Unique Pub Finance Co Plc/The 'N' 6.464% 30/3/2032 3,618, Windermere CMBS Plc 'A' FRN 24/4/2017 6, ,179, United States 180,000 Barrick North America Finance LLC 4.40% 30/5/ , ,000 Citigroup Inc FRN 30/11/ , ,000 COX Communications Inc '144A' 8.375% 1/3/ , ,000 Dell Inc 2.30% 10/9/ , ,000 General Motors Co '144A' 6.25% 2/10/ , ,000 HCP Inc 4.25% 15/11/ , ,000 HSBC Finance Corp 5.25% 15/4/ , ,000 Interpublic Group of Cos Inc/The 4.20% 15/4/ , ,975,000 Jefferies Group LLC 2.375% 20/5/2020 1,992, ,000 JPMorgan Chase & Co 'Q' FRN (Perpetual) 281, ,100,000 JPMorgan Chase & Co 'U' FRN (Perpetual) 1,560, ,000 Life Technologies Corp 6.00% 1/3/ , ,000 Life Technologies Corp 5.00% 15/1/ , ,400,000 Morgan Stanley 2.25% 12/3/2018 1,455, ,000 Morgan Stanley 5.75% 25/1/ , ,500,000 Morgan Stanley 'H' FRN (Perpetual) 2,664, ,000 QVC Inc 5.125% 2/7/ , ,093,000 QVC Inc 4.375% 15/3/2023 1,553, ,410,000 QVC Inc '144A' 4.85% 1/4/2024 1,085, ,000 SLM Corp 3.875% 10/9/ , ,000 SLM Corp 6.25% 25/1/ , ,000 Verizon Communications Inc 2.45% 1/11/ , ,223,000 Verizon Communications Inc 5.15% 15/9/2023 1,012, ,650,000 Wells Fargo & Co 'S' FRN (Perpetual) 2,050, ,849, Total Bonds 616,241, Total Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market 616,241, The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 131

134 BlackRock Fixed Income Strategies Fund continued Portfolio of Investments as at 31 May 2014 Funds Holding Market % Ireland 16,531,218 Institutional Cash Series Plc - Institutional Euro Assets Liquidity Fund 1 16,531, ,531, Total Funds 16,531, Securities portfolio at market value 632,773, Other Net Liabilities (7,247,499) (1.16) Total Net Assets () 625,525, This fund is managed by BlackRock. Open Exchange Traded Futures Contracts as at 31 May 2014 Number of Contracts Contract/ Expiration date Underlying exposure (343) 90 Day Euro March ,121,028 12, Euro BTP June ,194,088 57,579 (264) Euro-OAT June ,461,704 (219,440) (934) German Euro BOBL June ,060,064 (347,240) (381) German Euro Bund June ,267,003 (202,330) 11 German Euro Buxl June ,531,651 48,620 (17) German Euro Schatz June ,705,831 (2,040) (28) UK Long Gilt Bond September ,188,627 (24,785) (324) US Treasury 10 Year Note September ,527,488 (76,201) (22) US Treasury 2 Year Note September ,303,656 (757) 36 US Treasury 5 Year Note September ,628,034 1,033 (8) US Ultra Bond September ,264 (8,535) Total 487,723,438 (761,505) Note: The net unrealised depreciation of attributed to these transactions is included in the Statement of Net Assets (see Notes 2(d)). Sector Breakdown as at 31 May 2014 % of Net Assets* Government Financial Consumer, Cyclical 6.03 Asset Backed Securities 4.62 Mortgage Securities 3.90 Funds 2.64 Utilities 2.02 Communications 1.22 Consumer, Non-cyclical 1.14 Basic Materials 0.52 Energy 0.46 Diversified 0.43 Technology 0.22 Industrial 0.20 Other Net Liabilities (1.16) Open Forward Foreign Exchange Transactions as at 31 May 2014 Purchases Sales date DKK 940, ,038 12/6/2014 (81) 504,324 AUD 780,000 12/6/2014 (27,505) 51,158,596 GBP 42,520,000 12/6/2014 (1,112,936) 4,587,665 NOK 37,940,000 12/6/2014 (66,097) 1,522,557 SEK 13,530,000 12/6/ ,633 52,670,936 72,840,000 12/6/2014 (808,423) GBP 4,030,000 4,969,144 12/6/2014 (14,904) NOK 38,640,000 4,686,004 12/6/ ,621 PLN 320,000 75,449 12/6/2014 1,822 1,539,236 BRL 3,670,000 12/6/2014 (67,623) 34,060,000 24,764,082 12/6/ ,878 CHF 8,968 7,348 13/6/2014 (3) 23 CHF 28 13/6/ ,051 7,307 13/6/ Net unrealised depreciation ( underlying exposure 149,672,053) (1,765,545) Note: The net unrealised depreciation attributed to these transactions is included in the Statement of Net Assets (see Note 2(d)). Barclays Bank Plc, BNP Paribas SA, Citibank N.A. London, Credit Suisse International, Deutsche Bank AG London, HSBC Bank Plc, State Street Bank and Trust Company, State Street Bank London and UBS AG London are the counterparties to these Open Forward Foreign Exchange Transactions. * Based on the market value of the Portfolio of Investments except for Contract For Difference, which are based on the commitment (where applicable). 132 BlackRock Strategic Funds (BSF)

135 BlackRock Fixed Income Strategies Fund continued Swaps as at 31 May ,500,000 Credit Default Swaps (Bank of America) (Fund receives default protection on Imperial Tobacco Finance Plc 6.250% 4/12/2018 and pays Fixed 1.000%) (20/3/2019) (14,368) 1,345,000 Credit Default Swaps (Bank of America) (Fund protection on British Telecommunications Plc 5.750% 7/12/2028) (20/6/2019) ,000 Credit Default Swaps (Bank of America) (Fund protection on Host Hotels & Resorts LP 6.750% 1/6/2016) (20/6/2018) ,000 Credit Default Swaps (Bank of America) (Fund protection on RWE AG 5.750% 14/2/2033) (20/9/2018) 5,182 1,565,000 Credit Default Swaps (Bank of America) (Fund protection on Vodafone Group Plc 5.000% 4/6/2018) (20/6/2019) 2,912 2,500,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on Deutsche Telekom International Finance BV 6.000% 20/1/2017 and pays Fixed 1.000%) (20/3/2019) (5,271) 1,260,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on itraxx Europe Series 21 Version 1 and pays Fixed 1.000%) (20/6/2019) (749) 930,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on Koninklijke KPN NV 7.500% 4/2/2019 and pays Fixed 1.000%) (20/6/2019) (1,589) 550,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on Koninklijke KPN NV 8.375% 1/10/2030 and pays Fixed 1.000%) (20/3/2019) (4,294) 350,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on Pernod Ricard SA 4.875% 18/3/2016 and pays Fixed 1.000%) (20/9/2018) (7,062) 300,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on Pernod Ricard SA 4.875% 18/3/2016 and pays Fixed 1.000%) (20/9/2018) (5,905) 200,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on Pernod Ricard SA 4.875% 18/3/2016 and pays Fixed 1.000%) (20/9/2018) (3,838) 300,000 Credit Default Swaps (Barclays Bank) (Fund protection on RWE AG 5.750% 14/2/2033) (20/9/2018) 7, ,000 Credit Default Swaps (Barclays Bank) (Fund protection on RWE AG 5.750% 14/2/2033) (20/9/2018) 6, ,000 Credit Default Swaps (Barclays Bank) (Fund protection on RWE AG 5.750% 14/2/2033) (20/9/2018) 3,454 1,260,000 Credit Default Swaps (Barclays Bank) (Fund protection on Vodafone Group Plc 5.000% 4/6/2018) (20/6/2019) 2,991 16,800,000 Credit Default Swaps (Barclays Bank) (Fund protection on itraxx XO 21 Version 1) (20/6/2019) 149, ,000 Credit Default Swaps (Citibank) (Fund receives default protection on itraxx FinSub 17 Version 1 and pays Fixed 1.000%) (20/6/2017) (31,515) 690,000 Credit Default Swaps (Citibank) (Fund receives default protection on Koninklijke KPN NV 8.375% 1/10/2030 and pays Fixed 1.000%) (20/3/2019) (6,714) 1,000,000 Credit Default Swaps (Citibank) (Fund receives default protection on Koninklijke KPN NV 8.375% 1/10/2030 and pays Fixed 1.000%) (20/3/2019) (8,732) 54,000,000 Credit Default Swaps (Citigroup Global Markets SG) (Fund receives default protection on itraxx Europe Series 21 Version 1 and pays Fixed 1.000%) (20/6/2019) (83,492) 1,245,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Koninklijke KPN NV 7.500% 4/2/2019 and pays Fixed 1.000%) (20/6/2019) (3,350) 505,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Koninklijke KPN NV 8.375% 1/10/2030 and pays Fixed 1.000%) (20/3/2019) (4,425) 260,000 Credit Default Swaps (Credit Suisse) (Fund protection on Host Hotels & Resorts LP 6.750% 1/6/2016) (20/6/2018) 7, ,000 Credit Default Swaps (Credit Suisse) (Fund protection on Host Hotels & Resorts LP 6.750% 1/6/2016) (20/6/2018) 14, ,000 Credit Default Swaps (Deutsche Asset Management Life) (Fund receives Fixed 1.000% and provides default protection on E.ON AG 6.375% 29/5/2017) (20/12/2017) 6, ,000 Credit Default Swaps (Deutsche Bank) (Fund provides default protection on Firstenergy Corp 7.375% 15/11/2031 and receives Fixed 1.000%) (20/3/2018) (7,645) 1,015,000 Credit Default Swaps (Deutsche Bank) (Fund receives default protection on Banco Bilbao Vizcaya Argentaria SA 4.375% 20/10/2019 and pays Fixed 3.000%) (20/3/2019) (26,171) 1,105,000 Credit Default Swaps (Deutsche Bank) (Fund receives default protection on itraxx Europe Series 21 Version 1 and pays Fixed 1.000%) (20/6/2019) (588) 965,000 Credit Default Swaps (Deutsche Bank) (Fund receives default protection on itraxx Europe Series 21 Version 1 and pays Fixed 1.000%) (20/6/2019) ,000 Credit Default Swaps (Deutsche Bank) (Fund receives default protection on itraxx Europe Series 21 Version 1 and pays Fixed 1.000%) (20/6/2019) 106 1,095,000 Credit Default Swaps (Deutsche Bank) (Fund receives default protection on itraxx Europe Series 21 Version 1 and pays Fixed 1.000%) (20/6/2019) 166 The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 133

136 BlackRock Fixed Income Strategies Fund continued Swaps as at 31 May ,000 Credit Default Swaps (Deutsche Bank) (Fund receives default protection on Koninklijke KPN NV 8.375% 1/10/2030 and pays Fixed 1.000%) (20/3/2019) (3,561) 360,000 Credit Default Swaps (Deutsche Bank) (Fund receives default protection on Tesco Plc 6.000% 14/12/2029 and pays Fixed 1.000%) (20/6/2019) (1,168) 360,000 Credit Default Swaps (Deutsche Bank) (Fund receives default protection on Tesco Plc 6.000% 14/12/2029 and pays Fixed 1.000%) (20/6/2019) (1,711) 1,000,000 Credit Default Swaps (Deutsche Bank) (Fund protection on CDX NA IG 20 Version 1) (20/6/2018) 5, ,000 Credit Default Swaps (Deutsche Bank) (Fund protection on J Sainsbury Plc 4.250% 16/7/2014) (20/6/2019) (423) 360,000 Credit Default Swaps (Deutsche Bank) (Fund protection on J Sainsbury Plc 4.250% 16/7/2014) (20/6/2019) 111 1,015,000 Credit Default Swaps (Deutsche Bank) (Fund receives Fixed 3.000% and provides default protection on Banco Santander SA 5.780% 17/2/2028) (20/3/2019) 27,199 2,500,000 Credit Default Swaps (Goldman Sachs) (Fund receives default protection on Metsa OYJ 3.800% 27/6/2022 and pays Fixed 1.000%) (20/3/2019) (43,159) 3,000,000 Credit Default Swaps (Goldman Sachs) (Fund receives default protection on Russian Foreign Bond - Eurobond 7.500% 31/3/2030 and pays Fixed 1.000%) (20/6/2019) (34,008) 370,000 Credit Default Swaps (Goldman Sachs) (Fund receives default protection on Tesco Plc 6.000% 14/12/2029 and pays Fixed 1.000%) (20/3/2019) (1,498) 370,000 Credit Default Swaps (Goldman Sachs) (Fund protection on J Sainsbury Plc 4.250% 16/7/2014) (20/3/2019) 46 1,770,000 Credit Default Swaps (HSBC Bank Plc) (Fund receives default protection on Banco Bilbao Vizcaya Argentaria SA 4.375% 20/10/2019 and pays Fixed 3.000%) (20/3/2019) (44,290) 705,000 Credit Default Swaps (HSBC Bank Plc) (Fund receives default protection on BBVA Senior Finance SAU 3.750% 17/1/2018 and pays Fixed 3.000%) (20/3/2019) (18,178) 1,240,000 Credit Default Swaps (HSBC Bank Plc) (Fund receives default protection on BBVA Senior Finance SAU 3.750% 17/1/2018 and pays Fixed 3.000%) (20/3/2019) (32,616) 2,250,000 Credit Default Swaps (HSBC Bank Plc) (Fund protection on British Telecommunications Plc /12/2028) (20/6/2019) 3, ,000 Credit Default Swaps (HSBC Bank Plc) (Fund receives Fixed 3.000% and provides default protection on Banco Santander SA 5.780% 17/2/2028) (20/3/2019) 18,892 1,770,000 Credit Default Swaps (HSBC Bank Plc) (Fund receives Fixed 3.000% and provides default protection on Banco Santander SA 5.780% 17/2/2028) (20/3/2019) 47,431 1,240,000 Credit Default Swaps (HSBC Bank Plc) (Fund receives Fixed 3.000% and provides default protection on Banco Santander SA 5.780% 17/2/2028) (20/3/2019) 33,873 1,040,000 Credit Default Swaps (JP Morgan) (Fund receives default protection on Koninklijke KPN NV 7.500% 4/2/2019 and pays Fixed 1.000%) (20/6/2019) (2,035) 300,000 Credit Default Swaps (JP Morgan) (Fund receives default protection on Pernod Ricard SA 4.875% 18/3/2016 and pays Fixed 1.000%) (20/9/2018) (8,267) 800,000 Credit Default Swaps (JP Morgan) (Fund receives default protection on St-Gobain Nederland BV 5.000% 25/4/2014 and pays Fixed 1.000%) (20/6/2018) (34,949) 350,000 Credit Default Swaps (JP Morgan) (Fund receives Fixed 1.000% and provides default protection on FirstEnergy Corp 7.375% 15/11/2031) (20/9/2018) 9,146 1,775,000 Credit Default Swaps (Morgan Stanley) (Fund protection on Vodafone Group Plc 5.000% 4/6/2018) (20/6/2019) 2,438 16,400,000 Interest Rate Swap (Barclays Bank) (Fund receives Floating 6 Month IBOR and pays Fixed 2.282%) (15/8/2046) (70,954) 830,000 Interest Rate Swap (Barclays Bank) (Fund receives Floating 6 Month IBOR and pays Fixed 2.605%) (8/7/2063) (80,465) 6,000,000 Interest Rate Swap (Citigroup Global Markets SG) (Fund receives Fixed 0.900% and pays Floating 6 Month IBOR) (14/5/2019) 40,861 GBP 1,200,000 Interest Rate Swap (Citigroup Global Markets SG) (Fund receives Fixed 3.277% and pays Floating GBP 6 Month LIBOR) (12/5/2044) 23,423 1,300,000 Interest Rate Swap (Citigroup Global Markets SG) (Fund receives Floating 6 Month IBOR and pays Fixed 2.414%) (14/5/2044) (45,465) GBP 5,000,000 Interest Rate Swap (Citigroup Global Markets SG) (Fund receives Floating GBP 6 Month LIBOR and pays Fixed 2.147%) (12/5/2019) (51,721) PLN 13,325,000 Interest Rate Swap (Deutsche Asset Management Life) (Fund receives Floating PLN 3 Month WIBOR and pays Fixed 4.130%) (18/9/2014) (12,840) 6,000,000 Interest Rate Swap (Deutsche Bank) (Fund receives Fixed 2.500% and pays Floating 6 Month IBOR) (7/4/2044) 324,948 4,480,000 Interest Rate Swap (Deutsche Bank) (Fund receives Floating 6 Month IBOR and pays Fixed 2.541%) (7/4/2064) (349,882) ( underlying exposure 169,256,750) (305,725) Note: The total market value of 799,270 is included in the Statement of Net Assets (see Note 2(d)). 134 BlackRock Strategic Funds (BSF)

137 BlackRock Fund of ishares Conservative Portfolio of Investments as at 31 May 2014 Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding Market % Holding Market % FUNDS Germany 3,889 ishares Dow Jones - UBS Commodity Swap UCITS ETF 1 98, , Ireland 11,856 ishares Developed Markets Property Yield UCITS ETF 1 207, ,196 ishares Euro Corporate Bond UCITS ETF 1 403, ,680 ishares Euro Government Bond 1-3 UCITS ETF 1 525, ,234 ishares Euro Government Bond 3-5 UCITS ETF 1 363, ,647 ishares Euro Government Bond 7-10 UCITS ETF 1 499, ,250 ishares Euro High Yield Corporate Bond UCITS ETF 1 468, ,087 ishares Euro Inflation Linked Government Bond UCITS ETF 1 798, ,938 ishares O STOXX Small UCITS ETF 1 115, ,065 ishares FTSE 100 UCITS ETF 1 34, Ireland continued 3,383 ishares JP Morgan $ Emerging Markets Bond UCITS ETF 1 283, ,906 ishares MSCI Emerging Markets UCITS ETF 1 144, ,630 ishares MSCI Europe ex-uk UCITS ETF 1 71, ,825 ishares MSCI Japan UCITS ETF 1 32, ,324 ishares MSCI North America UCITS ETF 1 117, ishares MSCI Pacific ex-japan UCITS ETF 1 16, ,083, Total Funds 4,181, Total Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market 4,181, Securities portfolio at market value 4,181, Other Net Assets 14, Total Net Assets () 4,196, This fund is managed by BlackRock. Sector Breakdown as at 31 May 2014 % of Net Assets* Funds Other net assets * Based on the market value of the Portfolio of Investments except for Contract For Difference, which are based on the commitment (where applicable). The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 135

138 BlackRock Fund of ishares Dynamic Portfolio of Investments as at 31 May 2014 Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding Market % Holding Market % FUNDS Germany 727 ishares Dow Jones - UBS Commodity Swap UCITS ETF 1 18, , Ireland 2,302 ishares Developed Markets Property Yield UCITS ETF 1 40, ishares Euro Corporate Bond UCITS ETF 1 84, ishares Euro Government Bond 3-5 UCITS ETF 1 76, ishares Euro Government Bond 7-10 UCITS ETF 1 60, ishares Euro High Yield Corporate Bond UCITS ETF 1 99, ,112 ishares Euro Inflation Linked Government Bond UCITS ETF 1 217, ,642 ishares O STOXX Small UCITS ETF 1 782, ,463 ishares FTSE 100 UCITS ETF 1 238, ishares JP Morgan $ Emerging Markets Bond UCITS ETF 1 57, Ireland continued 23,638 ishares MSCI Emerging Markets UCITS ETF 1 695, ,103 ishares MSCI Europe ex-uk UCITS ETF 1 522, ,437 ishares MSCI Japan UCITS ETF 1 217, ,475 ishares MSCI North America UCITS ETF 1 666, ,012 ishares MSCI Pacific ex-japan UCITS ETF 1 138, ,636 ishares S&P 500 UCITS ETF 1 205, ,103, Total Funds 4,121, Total Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market 4,121, Securities portfolio at market value 4,121, Other Net Assets 25, Total Net Assets () 4,146, This fund is managed by BlackRock. Sector Breakdown as at 31 May 2014 % of Net Assets* Funds Other net assets * Based on the market value of the Portfolio of Investments except for Contract For Difference, which are based on the commitment (where applicable). 136 BlackRock Strategic Funds (BSF)

139 BlackRock Fund of ishares Growth Portfolio of Investments as at 31 May 2014 Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding Market % Holding Market % FUNDS Germany 4,977 ishares Dow Jones - UBS Commodity Swap UCITS ETF 1 125, , Ireland 15,270 ishares Developed Markets Property Yield UCITS ETF 1 267, ,408 ishares Euro Corporate Bond UCITS ETF 1 556, ,030 ishares Euro Government Bond 3-5 UCITS ETF 1 492, ,967 ishares Euro Government Bond 7-10 UCITS ETF 1 371, ,802 ishares Euro High Yield Corporate Bond UCITS ETF 1 639, ,063 ishares Euro Inflation Linked Government Bond UCITS ETF 1 1,379, ,490 ishares O STOXX Small UCITS ETF 1 1,512, ,021 ishares FTSE 100 UCITS ETF 1 443, ,478 ishares JP Morgan $ Emerging Markets Bond UCITS ETF 1 375, Ireland continued 46,387 ishares MSCI Emerging Markets UCITS ETF 1 1,364, ,190 ishares MSCI Europe ex-uk UCITS ETF 1 990, ,770 ishares MSCI Japan UCITS ETF 1 407, ,566 ishares MSCI North America UCITS ETF 1 1,650, ,266 ishares MSCI Pacific ex-japan UCITS ETF 1 251, ,703, Total Funds 10,828, Total Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market 10,828, Securities portfolio at market value 10,828, Other Net Assets 49, Total Net Assets () 10,878, This fund is managed by BlackRock. Sector Breakdown as at 31 May 2014 % of Net Assets* Funds Other net assets * Based on the market value of the Portfolio of Investments except for Contract For Difference, which are based on the commitment (where applicable). The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 137

140 BlackRock Fund of ishares Moderate Portfolio of Investments as at 31 May 2014 Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding Market % Holding Market % FUNDS Germany 13,080 ishares Dow Jones - UBS Commodity Swap UCITS ETF 1 329, , Ireland 41,387 ishares Developed Markets Property Yield UCITS ETF 1 725, ,601 ishares Euro Corporate Bond UCITS ETF 1 1,465, ,928 ishares Euro Government Bond 3-5 UCITS ETF 1 1,289, ,055 ishares Euro Government Bond 7-10 UCITS ETF 1 1,332, ,369 ishares Euro High Yield Corporate Bond UCITS ETF 1 1,693, ,949 ishares Euro Inflation Linked Government Bond UCITS ETF 1 3,310, ,925 ishares O STOXX Small UCITS ETF 1 1,436, ,231 ishares FTSE 100 UCITS ETF 1 428, ,989 ishares JP Morgan $ Emerging Markets Bond UCITS ETF 1 1,006, Ireland continued 47,118 ishares MSCI Emerging Markets UCITS ETF 1 1,385, ,566 ishares MSCI Europe ex-uk UCITS ETF 1 918, ,340 ishares MSCI Japan UCITS ETF 1 386, ,104 ishares MSCI North America UCITS ETF 1 1,555, ,127 ishares MSCI Pacific ex-japan UCITS ETF 1 246, ,182, Total Funds 17,512, Total Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market 17,512, Securities portfolio at market value 17,512, Other Net Assets 83, Total Net Assets () 17,595, This fund is managed by BlackRock. Sector Breakdown as at 31 May 2014 % of Net Assets* Funds Other net assets * Based on the market value of the Portfolio of Investments except for Contract For Difference, which are based on the commitment (where applicable). 138 BlackRock Strategic Funds (BSF)

141 BlackRock Global Absolute Return Bond Fund Portfolio of Investments as at 31 May 2014 Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding Market % of Net Assets Holding Market % of Net Assets BONDS Australia 1,017 Medallion Trust Series G 'A1' FRN 27/2/ ,750 Puma Finance Ltd G5 'A1' '144A' FRN 21/2/ , AUD 1,094,000 Queensland Treasury Corp 6.00% 21/7/ , ,014 Series E SWAN Trust 'A1' FRN 12/5/ , AUD 551,414 Torrens Trust/The 'A' FRN 12/4/ , ,398 Virgin Australia B Trust '144A' 6.00% 23/10/ , ,574, ,000 Austria BAWAG PSK Bank fuer Arbeit und Wirtschaft und Oesterreichische Postsparkasse AG 8.125% 30/10/ , , Belgium 525,000 Anheuser-Busch InBev NV FRN 29/3/ , ,000 KBC Groep NV FRN (Perpetual) 121, ,000 UCB SA 4.125% 4/1/ , , Bermuda 140,000 Aircastle Ltd 6.75% 15/4/ , ,000 Weatherford International Ltd/ Bermuda 5.50% 15/2/ , , BRL 2,004,000 Brazil Brazil Notas do Tesouro Nacional Serie F 10.00% 1/1/ , , Canada 500,000 CNOOC Nexen Finance 2014 ULC 4.25% 30/4/ , ,000 Husky Energy Inc 7.25% 15/12/ , ,000 Rogers Communications Inc 6.80% 15/8/ , , Cayman Islands HKD 2,000,000 China Overseas Grand Oceans Finance Cayman Ltd (Step Coupon) 2.00% 21/3/ , ,000 Logan Property Holdings Co Ltd 11.25% 4/6/ , GBP 450,000 Punch Taverns Finance B Ltd 'A6' 5.943% 30/12/ , ,000 Seagate HDD Cayman '144A' 3.75% 15/11/ , Cayman Islands continued 362,000 Seagate HDD Cayman 3.75% 15/11/ , HKD 4,000,000 Shenzhou International Group Holdings Ltd 0.50% 18/6/ , ,000 Tencent Holdings Ltd 3.375% 2/5/ , ,000 XLIT Ltd 2.30% 15/12/ , ,235, Denmark 575,000 Danske Bank A/S FRN (Perpetual) 594, , France 2,100,000 Auto ABS Compartiment 'A' FRN 25/7/2026 2,117, ,000 AXA SA FRN 16/4/ , GBP 450,000 AXA SA FRN (Perpetual) 606, ,000 BNP Paribas SA 1.25% 12/12/ , ,000 BNP Paribas SA 2.375% 20/5/ , ,000 BNP Paribas SA FRN 20/3/ , ,458 Cars Alliance Auto Loans France V 'A' FRN 25/2/ , ,000 CNP Assurances FRN 5/6/ , ,139 Driver France 1 FCT 'A' FRN 21/10/ , GBP 1,000,000 Electricite de France 5.50% 17/10/2041 1,403, ,000 Electricite de France FRN (Perpetual) 623, ,000 Electricite de France FRN (Perpetual) 212, ,504,995 FCT Copernic 'A1' FRN 25/9/2029 1,510, ,900,000 FCT GINKGO Compartment Sales Finance 'A' FRN 23/12/2040 1,907, ,270 FCT GINKGO Sales Finance 'A' FRN 18/7/ , ,196 FCT Marsollier Mortgages 'A' FRN 27/9/ , ,253,801 France Government Bond OAT 0.25% 25/7/2024 4,239, ,600,000 GDF Suez 2.375% 19/5/2026 1,599, ,300,000 GDF Suez FRN (Perpetual) 1,307, ,000,000 Master Credit Cards Pass Compartment France 'A' FRN 25/10/2025 1,002, ,000 Numericable Group SA '144A' 6.00% 15/5/ , ,000 Numericable Group SA Reg 5.375% 15/5/ , ,000 Plastic Omnium SA 2.875% 29/5/ , ,472 Red & Black Auto France 'A' FRN 28/12/ , ,000 Renault SA 3.125% 5/3/ , ,000 Valeo SA 3.25% 22/1/ , ,551, Securities pledged or given in guarantee, see Note 14, for further details. The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 139

142 BlackRock Global Absolute Return Bond Fund continued Portfolio of Investments as at 31 May 2014 Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding Market % of Net Assets Holding Market % of Net Assets Germany 1,172,000 Bayer AG FRN 29/7/2105 1,215, ,500,000 Bundesrepublik Deutschland 4.25% 4/7/2014 6,522, ,000,000 Bundesschatzanweisungen 13/6/2014 (Zero Coupon) 3,999, ,500,000 Bundesschatzanweisungen 12/9/2014 (Zero Coupon) 1,499, ,000 Continental AG 3.00% 16/7/ , ,200,000 Deutsche Bank AG FRN (Perpetual) 1,218, GBP 1,000,000 Deutsche Bank AG FRN (Perpetual) 1,236, ,000 Deutsche Bank AG/London 1.35% 30/5/ , ,295,000 Deutsche Bank AG/London 3.70% 30/5/2024 1,692, ,185,344 Driver Ten GmbH 'A' FRN 21/3/2019 1,185, ,000 Driver Twelve GmbH 'A' FRN 21/6/ , GBP 300,000 FMS Wertmanagement AoeR FRN 3/8/ , ,500,000 German Treasury Bill 25/6/2014 (Zero Coupon) 2,499, ,500,000 German Treasury Bill 27/8/2014 (Zero Coupon) 1,500, ,000,000 German Treasury Bill 24/9/2014 (Zero Coupon) 2,999, ,000,000 German Treasury Bill 29/10/2014 (Zero Coupon) 2,999, ,000,000 German Treasury Bill 26/11/2014 (Zero Coupon) 999, ,000,000 German Treasury Bill 28/1/2015 (Zero Coupon) 2,999, ,200,000 LB Baden-Wuerttemberg FRN 27/5/2026 1,200, ,000 Mahle GmbH 2.50% 14/5/ , ,259,803 Red & Black Auto Germany 2 'A' FRN 15/9/2022 1,262, ,502 Red & Black TME Germany 1 UG 'A' FRN 15/1/ , ,809 SC Germany Auto UG 'A' FRN 12/8/ , ,902 SC Germany Auto UG 'A' FRN 13/11/ , ,524 SC Germany Auto UG 'A' FRN 12/10/ , ,109 SC Germany auto UG haftungsbeschraenkt 'A' FRN 12/3/ , ,023,605 SC Germany Auto 'A' FRN 11/12/2023 1,025, ,778, Hong Kong 200,000 AIA Group Ltd '144A' 2.25% 11/3/ , ,000 China CITIC Bank International Ltd FRN (Perpetual) 191, ,000 Guotai Junan Financial Holdings Ltd 3.625% 22/5/ , , ,000 Iceland Iceland Government International Bond 4.875% 16/6/ , , India 200,000 Indian Railway Finance Corp Ltd 3.917% 26/2/ , ,150,000 Oil India Ltd 5.375% 17/4/ , ,000 Syndicate Bank/London 3.875% 4/12/ , ,299, Indonesia IDR 12,800,000,000 Indonesia Treasury Bond 8.375% 15/3/ , ,000 Pertamina Persero PT 6.45% 30/5/ , ,013, Ireland 650,000 Bank of Ireland 2.00% 8/5/ , ,800,000 Bank of Ireland 3.25% 15/1/2019 1,856, ,352 Bluebonnet Finance Plc 'D' FRN 20/12/ , GBP 750,000 Deco 2012-MHILL Ltd 'C' FRN 28/7/ , ,851 Deco 9-Pan Europe 3 Plc 'A2' FRN 27/7/ , ,000 ESB Finance Ltd 3.494% 12/1/ , ,085 Opera Germany No2 Plc 'A' FRN 20/10/ , ,000 Opera Germany No2 Plc 'C' FRN 20/10/ , ,558 SCF Rahoituspalvelut Ltd 'A' Reg 0.802% 25/5/ , GBP 229,358 Titan Europe Nhp Ltd 'A' FRN 20/1/ , ,591, ,000 Isle Of Man Sasol Financing International Plc 4.50% 14/11/ , , Italy 276,527 Asset-Backed European Securitisation Transaction Seven Srl 'A' FRN 10/12/ , ,000 Assicurazioni Generali SpA 4.125% 4/5/ , ,650,000 Banca Monte dei Paschi di Siena SpA 2.875% 16/4/2021 2,690, ,100,000 Banca Popolare dell'emilia Romagna SC 3.375% 22/10/2018 1,178, ,484 Berica ABS Srl 'A1' FRN 30/11/ , ,000 Enel SpA FRN 15/1/ , Securities pledged or given in guarantee, see Note 14, for further details. 140 BlackRock Strategic Funds (BSF)

143 BlackRock Global Absolute Return Bond Fund continued Portfolio of Investments as at 31 May 2014 Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding Market % of Net Assets Holding Market % of Net Assets Italy continued 523,420 Fondi Immobili Pubblici Funding SRL 1 'A2' FRN 10/1/ , ,000 Intesa Sanpaolo SpA 2.375% 13/1/ , ,000 Intesa Sanpaolo SpA 4.00% 30/10/ , ,666,870 Italy Buoni Poliennali Del Tesoro 2.15% 15/9/2014 1,673, ,605,990 Italy Buoni Poliennali Del Tesoro 2.55% 22/10/2016 3,744, ,814 Italy Buoni Poliennali Del Tesoro 2.25% 22/4/ , ,417,000 Italy Buoni Poliennali Del Tesoro 2.15% 12/11/2017 1,466, ,375,000 Italy Buoni Poliennali Del Tesoro 1.65% 23/4/2020 2,397, ,000 UniCredit SpA 3.00% 31/1/ , ,965, JPY 20,000, ,000 Japan Kawasaki Kisen Kaisha Ltd 26/9/2018 (Zero Coupon) 144, Yamaguchi Financial Group Inc 20/12/2018 (Zero Coupon) 310, , Jersey GBP 200,000 AA Bond Co Ltd 3.781% 31/7/ , ,381 Aircraft Lease Securitisation Ltd '144A' FRN 10/5/ , GBP 150,000 Heathrow Funding Ltd 4.625% 31/10/ , , Latvia 220,000 Republic of Latvia '144A' 5.25% 22/2/ , , Luxembourg 150,000 Altice SA 7.25% 15/5/ , ,000 Altice SA '144A' 7.75% 15/5/ , ,454,095 Bumper 2 SA 'A' FRN 23/2/2023 1,459, ,000 CNH Industrial Finance Europe SA 2.75% 18/3/ , ,160,258 E-Carat SA 'A' FRN 18/7/2020 1,165, ,229 E-CARAT SA 'A' FRN 18/9/ , ,301,486 ECAR 'A' 0.852% 18/11/2020 1,304, ,000 John Deere Bank SA FRN 19/3/ , ,500,000 Red & Black Auto Lease Germany 1 SA 'A' Reg 0.911% 15/4/2024 1,501, ,352 Volkswagen Car Lease '15A' FRN 21/1/ , ,789 Volkswagen Car Lease '16A' FRN 21/7/ , Luxembourg continued 101,293 Volkswagen Car Lease '17A' FRN 21/1/ , ,419,311 Volkswagen Car Lease '19A' FRN 21/11/2019 1,419, ,000 Wind Acquisition Finance SA 7.00% 23/4/ , ,600, Mexico 65,000 Kansas City Southern de Mexico SA de CV FRN 28/10/ , ,000 Petroleos Mexicanos 3.50% 30/1/ , , Netherlands 150,000 Aegon NV FRN 25/4/ , ,000 ASML Holding NV 3.375% 19/9/ , ,000 Bharti Airtel International Netherlands BV 3.375% 20/5/ , ,200,000 Bharti Airtel International Netherlands BV Reg 5.35% 20/5/ , ,000 BMW Finance NV FRN 4/4/ , ,000 Brenntag Finance BV 5.50% 19/7/ , ,849 Bumper 4 NL Finance BV 'A' FRN 20/5/ , GBP 300,000 Cable & Wireless International Finance BV 8.625% 25/3/ , GBP 4,000,000 Cooperatieve Centrale Raiffeisen- Boerenleenbank BA/Netherlands 4.625% 23/5/2029 4,904, GBP 150,000 Enel Finance International NV 5.75% 14/9/ , ,756 HIGHWAY BV 'A' FRN 26/3/ , ,620,000 ING Bank NV FRN 25/2/2026 1,681, ,000 Louis Dreyfus Commodities BV 3.875% 30/7/ , ,250,000 NN Group NV FRN 8/4/2044 1,308, GBP 600,000 Petrobras Global Finance BV 6.625% 16/1/ , ,000 Schaeffler Finance BV 2.75% 15/5/ , ,000 Schaeffler Finance BV 3.50% 15/5/ , ,817 Storm BV 'A1' FRN 22/8/ , ,090 Storm BV 'A1' FRN 22/10/ , ,000 Volkswagen International Finance NV FRN 15/4/ , ,000 Volkswagen International Finance NV Reg FRN (Perpetual) 639, ,000 Volkswagen International Finance NV Reg FRN (Perpetual) 198, ,045, The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 141

144 BlackRock Global Absolute Return Bond Fund continued Portfolio of Investments as at 31 May 2014 Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding Market % of Net Assets Holding Market % of Net Assets Portugal 1,025,452 Atlantes Ltd / Atlantes Finance Plc 6 'A' FRN 20/3/2033 1,028, ,000 Banco Espirito Santo SA 4.00% 21/1/ , ,000 Caixa Geral de Depositos SA 3.00% 15/1/ , ,273,287 TAGUS-Sociedade de Titularizacao de Creditos SA/Volta II Electricity Receivables 2.98% 16/2/2018 1,279, ,178,919 Volta Electricity Recivables Securitization 1 'SNR' 4.172% 16/2/2017 1,203, ,652, , ,000 Puerto Rico Warner Chilcott Co LLC / Warner Chilcott Finance LLC 7.75% 15/9/ , , Russia Russian Foreign Bond - Eurobond 4.875% 16/9/ , , Singapore 400,000 Alam Synergy Pte Ltd 6.95% 27/3/ , ,000 Olam International Ltd 7.50% 12/8/ , SGD 900,000 Singapore Government Bond 2.50% 1/6/ , ,178, ,000 ZAR 10,220,000 KRW 1,805,962, , ,000 Slovenia Slovenia Government Bond 1.75% 9/10/ , , South Africa South Africa Government Bond 8.75% 28/2/ , , South Korea Inflation Linked Korea Treasury Bond 1.125% 10/6/2023 1,237, Korea Hydro & Nuclear Power Co Ltd '144A' 6.25% 17/6/ , Korea National Oil Corp '144A' 5.375% 30/7/ , ,606, Spain 600,000 Bankia SA 4.25% 25/5/ , ,600,000 Bankia SA FRN 22/5/2024 2,580, ,246, ,000 Sri Lanka Sri Lanka Government International Bond 5.125% 11/4/ , , , ,000 Sweden Norcell Sweden Holding 2 AB 10.75% 29/9/ , Svenska Handelsbanken AB FRN 15/1/ , , Switzerland 590,000 Credit Suisse/New York NY 1.375% 26/5/ , ,000 Credit Suisse/New York NY 2.30% 28/5/ , ,450,000 UBS AG 5.125% 15/5/2024 4,032, ,004, United Kingdom GBP 1,513,000 Affordable Housing Finance Plc 3.80% 20/5/2042 1,899, GBP 34,286 Asset-Backed European Securitisation Transaction 8 Srl 'A' FRN 15/6/ , GBP 220,000 Asset-Backed European Securitisation Transaction 8 Srl 'B' FRN 15/6/ , ,000 AXIS Specialty Finance Plc 2.65% 1/4/ , ,000 Barclays Bank Plc 2.50% 20/2/ , ,000 BP Capital Markets Plc 2.972% 27/2/ , GBP 36,214 Brass No 2 Plc 'A1' FRN 16/7/ , GBP 1,678,234 Brass No 3 Plc 'A' FRN 16/4/2051 2,075, ,306,240 Brunel Residential Mortgage Securitisation Plc X 'A4A' FRN 13/1/2039 1,294, GBP 500,000 Dixons Retail Plc 8.75% 15/9/ , GBP 624,935 E-Carat 2 Plc 'A' FRN 18/10/ , GBP 1,275,390 E-Carat 'A' 1.30% 18/6/2020 1,569, GBP 347,212 E-Carat 3 Plc 'A' FRN 18/3/ , GBP 1,994,982 Gosforth Funding Plc 'A2' FRN 18/11/2049 2,472, ,865 Granite Master Issuer Plc A 'A1' '144A' FRN 20/12/ , ,585 Granite Master Issuer Plc A 'A5' '144A' FRN 20/12/ , GBP 605,849 Granite Master Issuer Plc X 'A7' FRN 20/12/ , ,027 Granite Master Issuer Plc 'A4' FRN 20/12/ , ,343,209 Granite Master Issuer Plc 'A4' FRN 20/12/ , ,506,574 Granite Master Issuer Plc '2A1' 0.289% 20/12/2054 1,826, GBP 205,737 Granite Master Issuer Plc '5A1' FRN 20/12/ , GBP 620,718 Greene King Finance Plc 'A5' FRN 15/12/ , ,005,000 HBOS Plc 4.875% 20/3/2015 1,034, ,000 HSBC Holdings Plc FRN 10/1/ , GBP 100,000 Imperial Tobacco Finance Plc 4.875% 7/6/ , GBP 1,387,679 Kenrick No 2 Plc 'A' FRN 18/4/2049 1,714, GBP 250,000 Manchester Airport Group Funding Plc 4.75% 31/3/ , BlackRock Strategic Funds (BSF)

145 BlackRock Global Absolute Return Bond Fund continued Portfolio of Investments as at 31 May 2014 Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding Market % of Net Assets Holding Market % of Net Assets United Kingdom continued GBP 405,000 Mitchells & Butlers Finance Plc 'C2' FRN 15/9/ , GBP 170,000 Mitchells & Butlers Finance Plc 'D1' FRN 15/6/ , GBP 147,092 Motor 2012 Plc 'A2' FRN 25/2/ , GBP 1,350,000 Nationwide Building Society FRN (Perpetual) 1,702, GBP 400,000 Next Plc 5.375% 26/10/ , ,000 OTE Plc 7.875% 7/2/ , GBP 440,000 Penarth Master Issuer Plc X 'A3' FRN 18/12/ , GBP 400,000 Punch Taverns Finance Plc 'A1R' 7.274% 15/4/ , GBP 93,234 Rochester Financing No 1 Plc 'A1' 1.969% 16/7/ , GBP 1,500,000 Sherwood Castle Funding Series Plc 'A' FRN 15/6/2016 1,842, GBP 668,000 Spirit Issuer Plc 'A2' FRN 28/12/ , GBP 360,000 Spirit Issuer Plc 'A6' FRN 28/12/ , ,000 SSE Plc FRN (Perpetual) 859, GBP 125,000 Stonegate Pub Co Financing Plc Reg FRN 15/4/ , GBP 100,000 Stonegate Pub Co Financing Plc Reg 5.75% 15/4/ , GBP 761,916 Temese Funding 1 Plc 'A' FRN 21/11/ , GBP 952,132 Tesco Property Finance 1 Plc 7.623% 13/7/2039 1,547, GBP 36,362 Turbo Finance 2 Plc 'A' FRN 20/2/ , GBP 508,000 Turbo Finance 2 Plc 'B' 5.50% 20/2/ , GBP 426,770 Turbo Finance 3 Plc 'A' FRN 20/11/ , GBP 763,000 Turbo Finance 4 Plc 'A' FRN 20/1/ , GBP 850,000 Unique Pub Finance Co Plc/The 7.395% 28/3/2024 1,084, GBP 693,684 Unique Pub Finance Co Plc/The 5.659% 30/6/ , GBP 868,000 Unique Pub Finance Co Plc/The 6.464% 30/3/2032 1,011, GBP 884,463 United Kingdom Gilt 3.50% 22/7/2068 1,128, GBP 559,037 United Kingdom Gilt Inflation Linked 0.25% 22/3/ , ,911, United States 162,000 Actavis Inc 1.875% 1/10/ , ,000 ADT Corp/The 4.125% 15/4/ , ,000 AES Corp/VA FRN 1/6/ , ,000 Air Lease Corp 4.50% 15/1/ , ,000 Air Lease Corp 3.375% 15/1/ , ,000 Ally Financial Inc 5.50% 15/2/ , ,000 Ally Financial Inc 6.25% 1/12/ , ,000 American Express Credit Account Master Trust 'A' 0.98% 15/5/ , ,000 American Homes 4 Rent 2014-SFR1 'A' 1.25% 17/6/ , ,000 American International Group Inc 5.45% 18/5/ , United States continued 155,000 American International Group Inc 5.85% 16/1/ , ,000 American International Group Inc 8.25% 15/8/ , ,250,000 AmeriCredit Automobile Receivables Trust 'D' 3.03% 9/7/ , ,000 ARC Properties Operating Partnership LP/Clark Acquisition LLC '144A' 2.00% 6/2/ , ,000 AutoZone Inc 5.75% 15/1/ , ,000 Aviation Capital Group Corp '144A' 3.875% 27/9/ , ,000 Avis Budget Car Rental LLC / Avis Budget Finance Inc 4.875% 15/11/ , ,000 BA Credit Card Trust 2014-A1 'A' FRN 15/6/ , ,000 BAMLL Commercial Mortgage Securities Trust 2013-DSNY 'A' '144A' FRN 15/9/ , ,000 Bank of America Corp 1.25% 11/1/ , ,000 Bank of America Corp 6.50% 1/8/ , ,000 Bank of America Corp 6.00% 1/9/ , ,000 Bank of America Corp 5.75% 1/12/ , ,000 Bank of New York Mellon Corp/The 3.40% 15/5/ , ,000 Belden Inc 5.50% 15/4/ , ,000 Biomet Inc 6.50% 1/8/ , ,000 Biomet Inc 6.50% 1/10/ , ,000 CA Inc 6.125% 1/12/ , ,000 Capital Auto Receivables Asset Trust 'A4' 1.69% 22/10/ , ,000 Capital One Financial Corp 6.75% 15/9/ , ,000 Capital One Financial Corp 2.45% 24/4/ , ,000 CarMax Auto Owner Trust 'A4' 0.84% 15/11/ , ,000 CarMax Auto Owner Trust 'B' 1.21% 15/1/ , ,000 Case New Holland Industrial Inc 7.875% 1/12/ , ,000 CD 2007-CD5 Mortgage Trust 'AJ' FRN 15/11/ , ,485,000 Chase Issuance Trust 2012-A5 'A5' 0.59% 15/8/2017 1,092, ,000 Chase Issuance Trust 2013-A9 'A' FRN 16/11/ , ,000 Chesapeake Funding LLC A 'B' '144A' FRN 7/3/ , ,000 Chesapeake Funding LLC A 'C' '144A' 1.352% 7/3/ , ,000 Chesapeake Funding LLC A 'D' '144A' FRN 7/3/ , ,000 Chrysler Capital Auto Receivables Trust 2014-AA 'D' '144A' 2.64% 15/7/ , ,000 CHS/Community Health Systems Inc 5.125% 15/8/ , ,000 CIT Group Inc 4.25% 15/8/ , ,485,000 Citibank Credit Card Issuance Trust 2005-A9 'A9' 5.10% 20/11/2017 1,163, The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 143

146 BlackRock Global Absolute Return Bond Fund continued Portfolio of Investments as at 31 May 2014 Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding Market % of Net Assets Holding Market % of Net Assets United States continued 345,000 Citibank Credit Card Issuance Trust 2007-A8 'A8' 5.65% 20/9/ , ,000 Citibank Credit Card Issuance Trust 2013-A6 'A6' 1.32% 7/9/ , ,259,146 Citigroup Commercial Mortgage Trust 2013-GC15 'XA' FRN 10/9/ , ,982,687 Citigroup Commercial Mortgage Trust 2014-GC19 'XA' FRN 10/3/2047 1,613, ,000 Citigroup Inc 1.25% 15/1/ , ,000 Citigroup Inc 1.70% 25/7/ , ,000 CNH Capital LLC 6.25% 1/11/ , ,000 COBALT CMBS Commercial Mortgage Trust 2007-C3 'AM' FRN 15/5/ , ,627 Comm 2013-CCRE13 Mortgage Trust 'XA' FRN 10/10/ , ,440,406 Comm 2013-CR7 Mortgage Trust 'XA' FRN 10/3/ , ,825,150 Comm 2014-CCRE14 Mortgage Trust 'XA' FRN 10/2/ , ,870,000 Comm 2014-CR17 Mortgage Pass Through Certificates 'XA' FRN 10/5/ , ,000 Comm 2014-UBS2 Mortgage Trust 'A2' 2.82% 10/3/ , ,995 Continental Airlines Pass Through Trust 9.00% 8/7/ , ,028 Countrywide Asset-Backed Certificates 'A2' FRN 25/4/ , ,000 Cox Communications Inc 5.45% 15/12/ , ,000 Crane Co 2.75% 15/12/ , ,000 Credit Acceptance Auto Loan Trust A 'A' '144A' 1.50% 15/4/ , ,000 Credit Suisse Commercial Mortgage Trust Series 2006-C5 'A3' 5.311% 15/12/ , ,000 CSX Corp 6.25% 1/4/ , ,000 DIRECTV Holdings LLC / DIRECTV Financing Co Inc 3.125% 15/2/ , ,000 DIRECTV Holdings LLC / DIRECTV Financing Co Inc 2.40% 15/3/ , ,000 DIRECTV Holdings LLC / DIRECTV Financing Co Inc 5.00% 1/3/ , ,000 DIRECTV Holdings LLC / DIRECTV Financing Co Inc 3.80% 15/3/ , ,000 DIRECTV Holdings LLC / DIRECTV Financing Co Inc 4.45% 1/4/ , ,000 Discover Card Execution Note Trust 1.04% 15/4/ , ,000 Dollar General Corp 1.875% 15/4/ , ,000 DT Auto Owner Trust A 'C' '144A' 2.64% 15/10/ , ,000 ERP Operating LP 5.125% 15/3/ , ,000 ERP Operating LP 5.375% 1/8/ , ,000 ERP Operating LP 5.75% 15/6/ , ,000 Express Scripts Holding Co 2.10% 12/2/ , ,384,006 Fannie Mae-Aces 2013-M5 'X2' FRN 25/1/2022 2,496, ,666 FHLMC Multifamily Structured Pass Through Certificates K031 'X1' 0.268% 25/4/2023 2, United States continued 28,959,691 FHLMC Multifamily Structured Pass Through Certificates K035 'X1' FRN 25/8/ , ,000 Fifth Third Bancorp 3.625% 25/1/ , ,000 Ford Credit Auto Owner Trust 2012-B 'D' 2.93% 15/10/ , ,000 Ford Credit Auto Owner Trust 2013-D 'A3' 0.67% 15/4/ , ,000 Ford Credit Floorplan Master Owner Trust A 'D' 3.50% 15/1/ , ,000 Ford Credit Floorplan Master Owner Trust A 'A1' 0.79% 15/6/ , ,000 Ford Motor Credit Co LLC 2.375% 12/3/ , ,000 Forest Laboratories Inc '144A' 4.375% 1/2/ , ,000 Forest Laboratories Inc 4.875% 15/2/ , ,000 GATX Corp 1.25% 4/3/ , ,000 GATX Corp 2.50% 15/3/ , ,000 General Motors Co '144A' 3.50% 2/10/ , ,000 General Motors Financial Co Inc 3.25% 15/5/ , ,000 Genesis Energy LP / Genesis Energy Finance Corp 7.875% 15/12/ , ,000 Goldman Sachs Group Inc/The 6.25% 1/9/ , ,000 Goldman Sachs Group Inc/The 6.15% 1/4/ , GBP 220,000 Goldman Sachs Group Inc/The 4.25% 29/1/ , ,000 GS Mortgage Securities Trust 2006-GG8 'AM' 5.591% 10/11/ , ,000 Harley-Davidson Funding Corp '144A' 5.75% 15/12/ , ,000 Hartford Financial Services Group Inc/The 4.00% 15/10/ , ,000 HCA Inc 6.50% 15/2/ , ,000 HCA Inc 3.75% 15/3/ , ,000 HCA Inc 7.25% 15/9/ , ,000 HCP Inc 6.00% 30/1/ , ,000 Health Care (Reit) Inc 6.20% 1/6/ , ,000 Hilton USA Trust 2013-HLT '144A' FRN 5/11/ , ,000 Hilton USA Trust 2013-HLT 'DFX' '144A' 4.407% 5/11/ , ,000 HLSS Servicer Advance Receivables Trust 2014-T1 'AT1' '144A' 1.244% 17/1/ , ,000 Huntington Bancshares Inc/OH 2.60% 2/8/ , ,000 Huntington National Bank/The 1.375% 24/4/ , ,000 Icahn Enterprises LP / Icahn Enterprises Finance Corp 3.50% 15/3/ , ,000 Interpublic Group of Cos Inc/The 2.25% 15/11/ , ,000 Iowa State Financial Authority 5.00% 1/12/ , BlackRock Strategic Funds (BSF)

147 BlackRock Global Absolute Return Bond Fund continued Portfolio of Investments as at 31 May 2014 Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding Market % of Net Assets Holding Market % of Net Assets United States continued 200,000 Jackson National Life Global Funding '144A' 2.30% 16/4/ , ,000 Jefferies Group LLC 2.375% 20/5/ , ,584,703 JP Morgan Chase Commercial Mortgage Securities Corp 2012-LC9 'XA' FRN 15/12/ , ,076 JP Morgan Chase Commercial Mortgage Securities Trust 2006-LDP6 'A4' FRN 15/4/ , ,000 JP Morgan Chase Commercial Mortgage Securities Trust 2007-CIBC18 'A4' 5.44% 12/6/ , ,054 JP Morgan Chase Commercial Mortgage Securities Trust 2007-CIBC19 'A1A' FRN 12/2/ , ,900 JP Morgan Chase Commercial Mortgage Securities Trust 2007-CIBC20 'AJ' FRN 12/2/ , ,567,123 JP Morgan Chase Commercial Mortgage Securities Trust 2013-LC11 'XA' FRN 15/4/ , ,000 JP Morgan Chase Commercial Mortgage Securities Trust 2014-FL4 'C' '144A' FRN 15/12/ , ,309 JPMBB Commercial Mortgage Securities Trust 2013-C17 'XA' FRN 15/1/ , ,000 JPMorgan Chase & Co 3.45% 1/3/ , ,000 JPMorgan Chase & Co 3.15% 5/7/ , ,000 LB-UBS Commercial Mortgage Trust 2006-C7 'A3' 5.347% 15/11/ , ,749 LB-UBS Commercial Mortgage Trust 2007-C2 'A1A' 5.387% 15/2/ , ,000 LB-UBS Commercial Mortgage Trust 2007-C2 'AM' FRN 15/2/ , ,000 LB-UBS Commercial Mortgage Trust 2007-C7 'AM' FRN 15/9/ , ,000 Lennar Corp 4.50% 15/6/ , ,000 Life Technologies Corp 4.40% 1/3/ , ,000 Lubrizol Corp 8.875% 1/2/ , ,000 M/I Homes Inc 8.625% 15/11/ , ,000 Manitowoc Co Inc/The 8.50% 1/11/ , ,000 Maxim Integrated Products Inc 2.50% 15/11/ , ,000 MetroPCS Wireless Inc 7.875% 1/9/ , ,000 Morgan Stanley 5.75% 18/10/ , ,000 Morgan Stanley 3.75% 25/2/ , ,000,000 Morgan Stanley FRN (Perpetual) 761, ,659,828 Morgan Stanley Bank of America Merrill Lynch Trust 2013-C13 'XA' FRN 15/11/2046 2,616, ,000 Morgan Stanley Capital I Trust 2007-IQ13 'AM' 5.406% 15/3/ , ,000 Morgan Stanley Re-REMIC Trust 2011-IO 'B' '144A' 23/3/2051 (Zero Coupon) 178, ,000 Mylan Inc/PA '144A' 7.875% 15/7/ , ,000 NASDAQ OMX Group Inc/The 3.875% 7/6/ , United States continued 870,000 Nissan Master Owner Trust Receivables 2013-A 'A' FRN 15/2/ , ,000 Omnicom Group Inc 5.90% 15/4/ ,000 Oncor Electric Delivery Co LLC 5.00% 30/9/ , ,000 OneMain Financial Issuance Trust A 'A' '144A' 2.43% 18/6/ , ,000 PC Financial Partnership 5.00% 15/11/ , ,000 Penske Truck Leasing Co Lp / PTL Finance Corp '144A' 3.375% 15/3/ , ,000 Penske Truck Leasing Co Lp / PTL Finance Corp '144A' 2.875% 17/7/ , ,000 Petrohawk Energy Corp 6.25% 1/6/ , ,000 PFS Financing Corp 2014-AA 'A' '144A' FRN 15/2/ , ,000 PFS Tax Lien Trust '144A' 1.44% 15/5/ , ,000 Philip Morris International Inc 2.875% 3/3/ , ,000 PNC Financial Services Group Inc/ The 3.90% 29/4/ , ,000 Prestige Auto Receivables Trust A 'B' '144A' 1.74% 15/5/ , ,000 Prestige Auto Receivables Trust A 'C' '144A' 2.39% 15/5/ , ,000 Prestige Auto Receivables Trust A 'D' '144A' 2.91% 15/7/ , ,000 ProLogis LP 5.625% 15/11/ , ,000 Prudential Financial Inc 6.00% 1/12/ , ,000 QVC Inc '144A' 3.125% 1/4/ , ,000 Regions Financial Corp 2.00% 15/5/ , ,000 Reynolds American Inc 3.25% 1/11/ , ,000 Reynolds American Inc 4.85% 15/9/ , ,000 Sabine Pass LNG LP 7.50% 30/11/ , ,000 Santander Drive Auto Receivables Trust 'C' 3.01% 16/4/ , ,000 Santander Drive Auto Receivables Trust 2012-AA 'C' '144A' 1.78% 15/11/ , ,000 Santander Drive Auto Receivables Trust 'C' 1.76% 15/1/ , ,000 Santander Drive Auto Receivables Trust 'C' 1.81% 15/4/ , ,000 Santander Drive Auto Receivables Trust 'D' 2.42% 15/4/ , ,025,000 Santander Drive Auto Receivables Trust 'A2B' FRN 17/4/ , ,000 Santander Drive Auto Receivables Trust 'B' 1.59% 15/10/ , ,768 Santander Drive Auto Receivables Trust 2014-S1 'R' '144A' 1.42% 16/8/ , The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 145

148 BlackRock Global Absolute Return Bond Fund continued Portfolio of Investments as at 31 May 2014 Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding Market % of Net Assets Holding Market % of Net Assets United States continued 100,000 SES Global Americas Holdings GP '144A' 2.50% 25/3/ , ,000 Shea Homes LP / Shea Homes Funding Corp 8.625% 15/5/ , ,000 SLM Private Education Loan Trust 2011-A 'A3' '144A' FRN 15/1/ , ,865 SLM Private Education Loan Trust 2013-A 'A1' '144A' FRN 15/8/ , ,844 SLM Private Education Loan Trust 2013-B 'A1' '144A' FRN 15/7/ , ,469 SLM Private Education Loan Trust 2013-C 'A1' '144A' FRN 15/2/ , ,000 SLM Private Education Loan Trust 2014-A 'A2B' '144A' FRN 15/1/ , ,279 SLM Student Loan Trust 'A' FRN 25/6/ , ,000 T-Mobile USA Inc 5.25% 1/9/ , ,000 Tenet Healthcare Corp 8.00% 1/8/ , ,000 Thermo Fisher Scientific Inc 2.25% 15/8/ , ,000 Time Warner Cable Inc 5.85% 1/5/ , ,000 United Airlines Inc '144A' 6.75% 15/9/ , ,598,015 United States Treasury Inflation Indexed Bonds 1.125% 15/1/2021 1,274, ,725,000 United States Treasury Note/Bond 0.25% 30/9/2015 1,268, ,000 United States Treasury Note/Bond 1.375% 31/7/ , ,030,000 United States Treasury Note/Bond 1.625% 31/3/ , ,000 United States Treasury Note/Bond 1.625% 30/4/ , ,000 Ventas Realty LP 1.55% 26/9/ , ,000 Ventas Realty LP / Ventas Capital Corp 2.00% 15/2/ , ,000 Verizon Communications Inc 2.50% 15/9/ , ,000 Verizon Communications Inc 2.55% 17/6/ , ,000 Verizon Communications Inc 2.375% 17/2/ , ,000 Verizon Communications Inc 3.25% 17/2/ , ,000 Wachovia Bank Commercial Mortgage Trust Series 2007-C33 'AJ' FRN 15/2/ , ,000 WellPoint Inc 1.875% 15/1/ , ,000 WellPoint Inc 2.30% 15/7/ , ,043,598 WFRBS Commercial Mortgage Trust 2013-C14 'XA' FRN 15/6/ , ,103 WFRBS Commercial Mortgage Trust 2013-C15 'XA' FRN 15/8/ , ,493,504 WFRBS Commercial Mortgage Trust 2014-LC14 'XA' FRN 15/3/ , ,565, Total Bonds 233,759, TBA United States 1,200,000 Fannie Mae Pool 3.00% TBA 870, ,570,348 Fannie Mae Pool 4.00% TBA 3,555, ,040,000 Fannie Mae Pool 4.50% TBA 6,379, ,000 Fannie Mae Pool 5.00% TBA 429, ,992 Fannie Mae Pool 3.709% TBA 141, ,132 Fannie Mae Pool 4.00% TBA 292, ,460,209 Fannie Mae Pool 4.00% TBA 1,139, ,800 Fannie Mae Pool 3.50% TBA 205, ,880,362 Fannie Mae Pool 3.00% TBA 2,096, ,111, Total TBA 15,111, Total Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market 248,870, Funds Luxembourg 92,279 BlackRock Global Funds - Emerging Markets Bond Fund X2 hedged 1 1,493, ,323 BlackRock Global Funds - Emerging Markets Local Currency Bond Fund X2 1 1,501, ,300 BlackRock Global Funds - Global High Yield Bond Fund X2 hedged 1 2,984, ,978, United Kingdom 3,110,000 BlackRock Corporate Bond Fund - D Acc 1 10,445, ,445, Total Funds 16,424, Other Transferable Securities and Money Market Instruments BONDS Australia AUD 994,000 Western Australian Treasury Corp 6.00% 16/10/ , , Total Bonds 781, Total Other Transferable Securities and Money Market Instruments 781, Securities portfolio at market value 266,076, Other Net Assets 32,526, Total Net Assets () 298,603, This fund is managed by BlackRock. 146 BlackRock Strategic Funds (BSF)

149 BlackRock Global Absolute Return Bond Fund continued Time Deposit as at 31 May 2014 Market % TIME DEPOSITS BNP Paribas SA 3,600, HSBC Bank Plc 3,600, ING Bank NV 3,600, Lloyds Bank Plc 3,600, Societe Generale SA 3,600, Total Time Deposits 18,000, Swaps as at 31 May ,000 Credit Default Swaps (Bank of America International Ltd) (Fund receives default protection on Carrefour SA 4.375% 2/11/2016 and pays Fixed 1.000%) (20/6/2019) (893) 640,000 Credit Default Swaps (Bank of America International Ltd) (Fund receives default protection on Deutsche Lufthansa AG 6.500% 7/7/2016 and pays Fixed 1.000%) (20/6/2019) (2,096) 640,000 Credit Default Swaps (Bank of America International Ltd) (Fund receives default protection on E.ON International Finance BV 6.375% 29/5/2017 and pays Fixed 1.000%) (20/6/2019) (7,771) 110,000 Credit Default Swaps (Bank of America International Ltd) (Fund receives default protection on HeidelbergCement Finance Luxembourg SA 1.068% 4/7/2016 and pays Fixed 5.000%) (20/12/2018) (1,368) 1,010,000 Credit Default Swaps (Bank of America International Ltd) (Fund receives default protection on Tesco Plc 6.000% 14/12/2029 and pays Fixed 1.000%) (20/6/2019) (10,305) 200,000 Credit Default Swaps (Bank of America International Ltd) (Fund receives Fixed 1.000% and provides default protection where necessary on Ahold Finance USA LLC 6.875% 1/5/2029) (20/6/2019) ,000 Credit Default Swaps (Bank of America International Ltd) (Fund receives Fixed 1.000% and provides default protection where necessary on Anglo American Capital Plc 5.875% 17/4/2015) (20/6/2019) 1, ,000 Credit Default Swaps (Bank of America International Ltd) (Fund receives Fixed 1.000% and provides default protection where necessary on Marks & Spencer Plc 1.068% 4/7/2016) (20/3/2019) 7,926 48,312 Credit Default Swaps (Bank of America International Ltd) (Fund receives Fixed 1.000% and provides default protection where necessary on PostNL NV 1.068% 4/7/2016) (20/3/2019) ,000 Credit Default Swaps (Bank of America International Ltd) (Fund receives Fixed 5.000% and provides default protection where necessary on CIR-Compagnie Industriali Riunite SpA 5.750% 16/12/2024) (20/6/2019) (165) 50,000 Credit Default Swaps (Bank of America International Ltd) (Fund receives Fixed 5.000% and provides default protection where necessary on Galp Energia SGPS SA 4.125% 25/1/2019) (20/6/2019) (412) 110,000 Credit Default Swaps (Bank of America International Ltd) (Fund receives Fixed 5.000% and provides default protection where necessary on UCB SA 3.750% 27/3/2020) (20/6/2019) 1,279 56,512 Credit Default Swaps (Bank of America) (Fund receives default protection on Accor SA 2.875% 19/6/2017 and pays Fixed 1.000%) (20/6/2019) (87) 118,100 Credit Default Swaps (Bank of America) (Fund receives default protection on BASF SE 4.500% (29/6/2016) and pays Fixed 1.000%) (20/9/2017) (2,759) 122,800 Credit Default Swaps (Bank of America) (Fund receives default protection on BASF SE 4.500% 29/6/2016 and pays Fixed 1.000%) (20/9/2017) (2,815) 1,420,000 Credit Default Swaps (Bank of America) (Fund receives default protection on Citigroup Inc 6.125% 15/5/2018 and pays Fixed 1.000%) (20/6/2019) (3,581) 1,500,000 Credit Default Swaps (Bank of America) (Fund receives default protection on Darden Restaurants Inc 6.000% 15/8/2035 and pays Fixed 1.000%) (20/6/2019) ,000 Credit Default Swaps (Bank of America) (Fund receives default protection on Deutsche Lufthansa AG 6.500% 7/7/2016 and pays Fixed 1.000%) (20/6/2019) (2,415) 240,000 Credit Default Swaps (Bank of America) (Fund receives default protection on Deutsche Telekom International Finance BV 1.068% 4/7/2016 and pays Fixed 1.000%) (20/6/2019) (625) 290,000 Credit Default Swaps (Bank of America) (Fund receives default protection on Deutsche Telekom International Finance BV 6.000% 20/1/2017 and pays Fixed 1.000%) (20/6/2019) (1,224) 370,000 Credit Default Swaps (Bank of America) (Fund receives default protection on Deutsche Telekom International Finance BV 6.000% 20/1/2017 and pays Fixed 1.000%) (20/6/2019) (1,641) The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 147

150 BlackRock Global Absolute Return Bond Fund continued Swaps as at 31 May ,000 Credit Default Swaps (Bank of America) (Fund receives default protection on E.ON International Finance BV 6.375% 29/5/2017 and pays Fixed 1.000%) (20/6/2019) (4,990) 280,000 Credit Default Swaps (Bank of America) (Fund receives default protection on Electrolux AB FRN 1.068% 4/7/2016 and pays Fixed 1.000%) (20/3/2019) (3,648) 100,000 Credit Default Swaps (Bank of America) (Fund receives default protection on Electrolux AB FRN 1.068% 4/7/2016 and pays Fixed 1.000%) (20/3/2019) (1,354) 170,000 Credit Default Swaps (Bank of America) (Fund receives default protection on Electrolux AB FRN 7/4/2016 and pays Fixed 1.000%) (20/12/2018) ,000 Credit Default Swaps (Bank of America) (Fund receives default protection on Experian Finance Plc 4.750% 23/11/2018 and pays Fixed 1.000%) (20/12/2018) (522) 520,000 Credit Default Swaps (Bank of America) (Fund receives default protection on Fiat Finance North America Inc 5.625% 12/6/2017 and pays Fixed 5.000%) (20/6/2019) 1,539 73,394 Credit Default Swaps (Bank of America) (Fund receives default protection on Finmeccanica Finance SA 5.750% 12/12/2018 and pays Fixed 5.000%) (20/3/2018) (5,374) 158,000 Credit Default Swaps (Bank of America) (Fund receives default protection on Finmeccanica Finance SA/Old 5.750% 12/12/2018 and pays Fixed 5.000%) (20/6/2019) ,000 Credit Default Swaps (Bank of America) (Fund receives default protection on Finmeccanica Finance SA/Old 5.750% 12/12/2018 and pays Fixed 5.000%) (20/6/2019) (1,063) 710,000 Credit Default Swaps (Bank of America) (Fund receives default protection on GDF Suez 1.068% 4/7/2016 and pays Fixed 1.000%) (20/6/2019) (2,954) 800,000 Credit Default Swaps (Bank of America) (Fund receives default protection on Imperial Tobacco Finance Plc 6.250% 4/12/2018 and pays Fixed 1.000%) (20/3/2019) (4,598) 240,000 Credit Default Swaps (Bank of America) (Fund receives default protection on Kering 1.068% 4/7/2016 and pays Fixed 1.000%) (20/6/2019) (1,272) 80,000 Credit Default Swaps (Bank of America) (Fund receives default protection on LANXESS Finance BV 7.750% 9/4/2014 and pays Fixed 1.000%) (20/3/2018) (1,895) 110,000 Credit Default Swaps (Bank of America) (Fund receives default protection on LANXESS Finance BV 7.750% 9/4/2014 and pays Fixed 1.000%) (20/3/2018) (2,709) 1,150,000 Credit Default Swaps (Bank of America) (Fund receives default protection on LANXESS Finance BV 7.750% 9/4/2014 and pays Fixed 1.000%) (20/12/2018) (26,998) 140,000 Credit Default Swaps (Bank of America) (Fund receives default protection on Metro AG 1.068% 4/7/2016 and pays Fixed 1.000%) (20/3/2019) (1,182) 260,000 Credit Default Swaps (Bank of America) (Fund receives default protection on Pearson Plc 1.068% 4/7/2016 and pays Fixed 1.000%) (20/3/2019) (67) 86,000 Credit Default Swaps (Bank of America) (Fund receives default protection on Portugal Telecom International Finance BV 4.375% 24/3/2017 and pays Fixed 5.000%) (20/6/2019) (2,219) 105,200 Credit Default Swaps (Bank of America) (Fund receives default protection on PostNL NV 3.875% 1/6/2015 and pays Fixed 1.000%) (20/9/2017) (6,103) 200,000 Credit Default Swaps (Bank of America) (Fund receives default protection on Rallye SA 7.625% 4/11/2016 and pays Fixed 5.000%) (20/9/2017) (30,172) 580,000 Credit Default Swaps (Bank of America) (Fund receives default protection on RWE AG 5.750% 14/2/2033 and pays Fixed 1.000%) (20/12/2018) (11,566) 740,000 Credit Default Swaps (Bank of America) (Fund receives default protection on SABMiller Plc 1.068% 4/7/2016 and pays Fixed 1.000%) (20/3/2019) 1,076 80,000 Credit Default Swaps (Bank of America) (Fund receives default protection on Scandinavian Airlines 9.650% 15/6/2014 and pays Fixed 5.000%) (20/6/2019) ,000 Credit Default Swaps (Bank of America) (Fund receives default protection on Societe Air France SA 2.75% 1/4/2020 and pays Fixed 5.000%) (20/12/2018) (8,198) 40,000 Credit Default Swaps (Bank of America) (Fund receives default protection on Societe Air France SA 2.750% 1/4/2020 and pays Fixed 5.000%) (20/9/2018) (6,474) 150,000 Credit Default Swaps (Bank of America) (Fund receives default protection on Solvay SA 4.625% 27/6/2018 and pays Fixed 1.000%) (20/6/2019) (1,520) 120,000 Credit Default Swaps (Bank of America) (Fund receives default protection on Solvay SA 4.625% 27/6/2018 and pays Fixed 1.000%) (20/6/2019) (1,216) 60,000 Credit Default Swaps (Bank of America) (Fund receives default protection on Stena AB 6.125% 1/2/2017 and pays Fixed 5.000%) (20/12/2017) (6,777) 1,215,000 Credit Default Swaps (Bank of America) (Fund receives default protection on Suedzucker International Finance BV 4.125% 29/3/2018 and pays Fixed 1.000%) (20/6/2019) 13, ,000 Credit Default Swaps (Bank of America) (Fund receives default protection on Swedish Match AB 3.125% 3/4/2019 and pays Fixed 1.000%) (20/6/2019) (1,588) 130,000 Credit Default Swaps (Bank of America) (Fund receives default protection on Tate & Lyle International Finance Plc 1.068% 4/7/2016 and pays Fixed 1.000%) (20/3/2019) 118 1,710,000 Credit Default Swaps (Bank of America) (Fund receives default protection on Tesco Plc 6.000% 14/12/2029 and pays Fixed 1.000%) (20/6/2019) (17,493) 430,000 Credit Default Swaps (Bank of America) (Fund receives default protection on Tesco Plc 6.000% 14/12/2029 and pays Fixed 1.000%) (20/6/2019) (3,755) 148 BlackRock Strategic Funds (BSF)

151 BlackRock Global Absolute Return Bond Fund continued Swaps as at 31 May ,000 Credit Default Swaps (Bank of America) (Fund receives default protection on Thales SA 2.750% 19/10/2016 and pays Fixed 1.000%) (20/6/2019) (1,081) 90,000 Credit Default Swaps (Bank of America) (Fund receives default protection on ThyssenKrupp AG 4.375% 18/3/2015 and pays Fixed 1.000%) (20/6/2019) (2,058) 500,000 Credit Default Swaps (Bank of America) (Fund receives default protection on ThyssenKrupp AG 4.375% 18/3/2015 and pays Fixed 1.000%) (20/6/2017) (85,601) 400,000 Credit Default Swaps (Bank of America) (Fund receives default protection on Vinci SA 4.125% 20/2/2017 and pays Fixed 1.000%) (20/6/2019) (1,855) 324,000 Credit Default Swaps (Bank of America) (Fund receives default protection on Volvo Treasury AB 5.000% 31/5/2017 and pays Fixed 1.000%) (20/6/2019) (1,965) 290,000 Credit Default Swaps (Bank of America) (Fund protection on British Telecommunications Plc 5.750% 7/12/2028) (20/6/2019) ,000 Credit Default Swaps (Bank of America) (Fund protection on RWE AG 5.750% 14/2/2033) (20/9/2018) 5, ,000 Credit Default Swaps (Bank of America) (Fund protection on Vodafone Group Plc 5.000% 4/6/2018) (20/6/2019) ,000 Credit Default Swaps (Bank of America) (Fund protection where necessary on Anglo American Capital Plc 5.875% 17/4/2015) (20/6/2019) 4,522 1,500,000 Credit Default Swaps (Bank of America) (Fund protection where necessary on Darden Restaurants Inc 6.000% 15/8/2035) (20/6/2017) (2,185) 630,000 Credit Default Swaps (Bank of America) (Fund protection where necessary on Gas Natural Capital Markets SA 4.500% 27/1/2020) (20/6/2019) 5, ,000 Credit Default Swaps (Bank of America) (Fund protection where necessary on Koninklijke KPN NV 7.500% 4/2/2019) (20/6/2019) 2, ,000 Credit Default Swaps (Bank of America) (Fund protection where necessary on Marks & Spencer Plc 1.068% 4/7/2016) (20/6/2019) (229) 400,000 Credit Default Swaps (Bank of America) (Fund protection where necessary on Next Plc 5.375% 26/10/2021) (20/6/2018) 9, ,000 Credit Default Swaps (Bank of America) (Fund protection where necessary on Rolls-Royce Plc 7.375% 14/6/2016) (20/12/2017) 1, ,000 Credit Default Swaps (Bank of America) (Fund receives Fixed 1.000% and provides default protection where necessary on Telefonaktiebolaget LM Ericsson 5.375% 27/6/2017) (20/12/2018) 2, ,000 Credit Default Swaps (Bank of America) (Fund receives Fixed 1.000% and provides default protection where necessary on Telefonaktiebolaget LM Ericsson 5.375% 27/6/2017) (20/12/2018) 8,780 50,000 Credit Default Swaps (Bank of America) (Fund protection where necessary on Brisa Concessao Rodoviaria SA 1.068% 4/7/2016) (20/3/2019) 3, ,000 Credit Default Swaps (Bank of America) (Fund protection where necessary on Brisa Concessao Rodoviaria SA 1.068% 4/7/2016) (20/3/2019) 6,966 70,000 Credit Default Swaps (Bank of America) (Fund protection where necessary on Brisa Concessao Rodoviaria SA 1.068% 4/7/2016) (20/3/2019) 5,098 90,000 Credit Default Swaps (Bank of America) (Fund protection where necessary on Brisa Concessao Rodoviaria SA 1.068% 4/7/2016) (20/3/2019) 4,030 50,000 Credit Default Swaps (Bank of America) (Fund protection where necessary on Brisa Concessao Rodoviaria SA 1.068% 4/7/2016) (20/3/2019) 1, ,000 Credit Default Swaps (Bank of America) (Fund protection where necessary on Brisa Concessao Rodoviaria SA 4.500% 5/12/2016) (20/6/2019) ,000 Credit Default Swaps (Bank of America) (Fund protection where necessary on British Airways Plc 8.750% 23/8/2016) (20/12/2018) 14, ,000 Credit Default Swaps (Bank of America) (Fund receives Fixed 5.000% and provides default protection where necessary on CIR- Compagnie Industriali Riunite SpA 5.750% 16/12/2024) (20/12/2018) 30, ,000 Credit Default Swaps (Bank of America) (Fund protection where necessary on Conti-Gummi Finance BV 1.068% 4/7/2016) (20/3/2019) (6,407) 20,000 Credit Default Swaps (Bank of America) (Fund protection where necessary on Eileme 2 AB % 31/1/2020) (20/12/2018) 3,761 90,000 Credit Default Swaps (Bank of America) (Fund protection where necessary on Galp Energia SGPS SA 4.125% 25/1/2019) (20/6/2019) (204) 147,000 Credit Default Swaps (Bank of America) (Fund protection where necessary on INEOS Group Holdings SA 6.500% 15/8/2018) (20/6/2019) 1,172 50,000 Credit Default Swaps (Bank of America) (Fund protection where necessary on Melia Hotels International SA 5.000% 18/12/2014) (20/3/2018) 9,468 The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 149

152 BlackRock Global Absolute Return Bond Fund continued Swaps as at 31 May ,000 Credit Default Swaps (Bank of America) (Fund protection where necessary on Melia Hotels International SA 5.000% 18/12/2014) (20/3/2018) 9,468 30,000 Credit Default Swaps (Bank of America) (Fund protection where necessary on Melia Hotels International SA 5.000% 18/12/2014) (20/3/2018) 5,756 50,000 Credit Default Swaps (Bank of America) (Fund protection where necessary on Melia Hotels International SA 5.000% 18/12/2014) (20/3/2018) 9,343 50,000 Credit Default Swaps (Bank of America) (Fund protection where necessary on Melia Hotels International SA 5.000% 18/12/2014) (20/6/2018) 7, ,000 Credit Default Swaps (Bank of America) (Fund protection where necessary on Metsa Board OYJ 4.000% 13/3/2019) (20/6/2019) ,000 Credit Default Swaps (Bank of America) (Fund protection where necessary on Nokia OYJ 6.750% 4/2/2019) (20/12/2017) 10, ,000 Credit Default Swaps (Bank of America) (Fund protection where necessary on OTE Plc 1.068% 4/7/2016) (20/3/2019) ,000 Credit Default Swaps (Bank of America) (Fund protection where necessary on OTE Plc 1.068% 4/7/2016) (20/3/2019) ,000 Credit Default Swaps (Bank of America) (Fund protection where necessary on Peugeot SA 7.375% 6/3/2018) (20/6/2019) ,000 Credit Default Swaps (Bank of America) (Fund protection where necessary on Peugeot SA 8.375% 15/7/2014) (20/9/2018) 7,869 10,000 Credit Default Swaps (Bank of America) (Fund protection where necessary on Scandinavian Airlines 9.65% 16/6/2014) (20/12/2018) ,000 Credit Default Swaps (Bank of America) (Fund protection where necessary on TUI AG 2.750% 24/3/2016) (20/12/2018) 4, ,000 Credit Default Swaps (Bank of America) (Fund protection where necessary on TUI AG 5.125% 10/12/2012) (20/12/2017) 11,163 60,000 Credit Default Swaps (Bank of America) (Fund protection where necessary on TUI AG 5.125% 10/12/2012) (20/12/2017) 5, ,000 Credit Default Swaps (Bank of America) (Fund protection where necessary on Wendel SA 4.875% 26/5/2016) (20/12/2017) 6, ,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on BHP Billiton Finance USA Ltd 7.250% 1/3/2016 and pays Fixed 1.000%) (20/6/2019) (140) 170,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on Bouygues SA 4.750% 24/5/2016 and pays Fixed 1.000%) (20/6/2019) (1,263) 1,158,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on CNH Industrial Finance Europe SA 6.250% 9/3/2018 and pays Fixed 5.000%) (20/6/2019) (2,022) 800,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on Deutsche Telekom International Finance BV 6.000% 20/1/2017 and pays Fixed 1.000%) (20/3/2019) (1,687) 150,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on Finmeccanica Finance SA/Old 5.75% 12/12/2018 and pays Fixed 5.000%) (20/12/2018) (7,326) 400,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on GDF Suez 5.125% 19/2/2018 and pays Fixed 1.000%) (20/6/2018) (10,658) 555,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on itraxx Europe Series 21 Version 1 and pays Fixed 1.000%) (20/6/2019) (330) 90,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on Koninklijke DSM NV 1.068% 4/7/2016 and pays Fixed 5.000%) (20/3/2019) (1,284) 175,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on Koninklijke KPN NV 7.500% 4/2/2019 and pays Fixed 1.000%) (20/6/2019) (299) 600,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on Koninklijke KPN NV 8.375% 1/10/2030 and pays Fixed 1.000%) (20/3/2019) (4,685) 77,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on Ladbrokes Group Finance Plc 7.625% 5/3/2017 and pays Fixed 1.000%) (20/6/2019) (1,337) 40,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on LANXESS Finance BV 7.750% 9/4/2014 and pays Fixed 1.000%) (20/3/2018) (918) 2,400,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on Markit itraxx Europe Crossover Series 21 Version 1 and pays Fixed 5.000%) (20/6/2019) (29,861) 2,269 Credit Default Swaps (Barclays Bank) (Fund receives default protection on Markit itraxx Europe Series 20 Version 1 and pays Fixed 1.000%) (20/12/2018) (11) 9,400,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on Markit itraxx Europe Series 21 Version 1 and pays Fixed 1.000%) (20/6/2019) (61,842) 2,680,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on Markit itraxx Europe Series 21 Version 1 and pays Fixed 1.000%) (20/6/2019) (5,375) 170,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on Metro AG 7.625% 5/3/2015 and pays Fixed 1.000%) (20/3/2019) (2,619) 150 BlackRock Strategic Funds (BSF)

153 BlackRock Global Absolute Return Bond Fund continued Swaps as at 31 May ,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on Metro AG 7.625% 5/3/2015 and pays Fixed 1.000%) (20/6/2019) (7,183) 260,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on Metro AG 7.625% 5/3/2015 and pays Fixed 1.000%) (20/6/2019) (3,061) 530,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on Metro AG 7.625% 5/3/2015 and pays Fixed 1.000%) (20/6/2019) (1,812) 130,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on Pearson Plc 7.000% 27/10/2014 and pays Fixed 1.000%) (20/6/2019) (528) 300,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on Pernod Ricard SA 4.875% 18/3/2016 and pays Fixed 1.000%) (20/9/2018) (6,053) 300,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on Pernod Ricard SA 4.875% 18/3/2016 and pays Fixed 1.000%) (20/9/2018) (5,905) 200,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on Pernod Ricard SA 4.875% 18/3/2016 and pays Fixed 1.000%) (20/9/2018) (3,838) 140,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on Portugal Telecom International Finance BV 1.068% 4/7/2016 and pays Fixed 5.000%) (20/3/2019) (4,970) 130,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on Portugal Telecom International Finance BV 1.068% 4/7/2016 and pays Fixed 5.000%) (20/3/2019) (4,615) 80,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on Portugal Telecom International Finance BV 1.068% 4/7/2016 and pays Fixed 5.000%) (20/3/2019) (2,614) 250,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on PostNL NV 3.875% 1/6/2015 and pays Fixed 1.000%) (20/6/2019) (2,816) 230,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on SABMiller Plc 1.068% 4/7/2016 and pays Fixed 1.000%) (20/3/2019) (542) 280,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on SABMiller Plc 1.068% 4/7/2016 and pays Fixed 1.000%) (20/3/2019) (1,230) 290,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on SABMiller Plc 6.625% 15/8/2033 and pays Fixed 1.000%) (20/6/2019) (767) 170,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on Suedzucker International Finance BV 4.125% 29/3/2018 and pays Fixed 1.000%) (20/6/2018) 2, ,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on Tate & Lyle International Finance Plc 1.068% 4/7/2016 and pays Fixed 1.000%) (20/6/2019) ,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on Vivendi SA 4.875% 2/12/2019 and pays Fixed 1.000%) (20/6/2019) ,000 Credit Default Swaps (Barclays Bank) (Fund receives default protection on Wolters Kluwer NV 1.068% 4/7/2016 and pays Fixed 1.000%) (20/6/2019) (588) 300,000 Credit Default Swaps (Barclays Bank) (Fund protection on RWE AG 5.750% 14/2/2033) (20/9/2018) 7, ,000 Credit Default Swaps (Barclays Bank) (Fund protection on RWE AG 5.750% 14/2/2033) (20/9/2018) 5, ,000 Credit Default Swaps (Barclays Bank) (Fund protection on RWE AG 5.750% 14/2/2033) (20/9/2018) 3, ,000 Credit Default Swaps (Barclays Bank) (Fund protection on Vodafone Group Plc 5.000% 4/6/2018) (20/6/2019) 1, ,000 Credit Default Swaps (Barclays Bank) (Fund protection where necessary on Anglo American Capital Plc 5.875% 17/4/2015) (20/6/2019) 1, ,000 Credit Default Swaps (Barclays Bank) (Fund protection where necessary on BP Plc 4.200% 15/6/2018) (20/6/2019) ,000 Credit Default Swaps (Barclays Bank) (Fund protection where necessary on Enel SpA 5.250% 20/6/2017) (20/6/2019) 3, ,000 Credit Default Swaps (Barclays Bank) (Fund protection where necessary on Enel SpA 5.250% 20/6/2017) (20/6/2019) 1, ,000 Credit Default Swaps (Barclays Bank) (Fund protection where necessary on Enel SpA 5.250% 20/6/2017) (20/6/2019) ,000 Credit Default Swaps (Barclays Bank) (Fund protection where necessary on Glencore Finance Europe SA 6.500% 27/2/2019) (20/6/2019) 6,990 60,000 Credit Default Swaps (Barclays Bank) (Fund protection where necessary on National Grid Plc 5.000% 2/7/2018) (20/6/2018) ,000 Credit Default Swaps (Barclays Bank) (Fund protection where necessary on Next Plc 5.375% 26/10/2021) (20/6/2018) 2, ,000 Credit Default Swaps (Barclays Bank) (Fund protection where necessary on Next Plc 5.375% 26/10/2021) (20/6/2017) 28,679 The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 151

154 BlackRock Global Absolute Return Bond Fund continued Swaps as at 31 May ,000 Credit Default Swaps (Barclays Bank) (Fund receives Fixed 1.000% and provides default protection where necessary on Rio Tinto Finance USA Ltd 6.500% 15/7/2018) (20/6/2019) (127) 290,000 Credit Default Swaps (Barclays Bank) (Fund receives Fixed 1.000% and provides default protection where necessary on Rio Tinto Finance USA Ltd 6.500% 15/7/2018) (20/6/2019) (127) 570,000 Credit Default Swaps (Barclays Bank) (Fund protection where necessary on Rio Tinto Finance USA Ltd 6.500% 15/7/2018) (20/6/2019) (251) 300,000 Credit Default Swaps (Barclays Bank) (Fund receives Fixed 1.000% and provides default protection where necessary on Telefonaktiebolaget LM Ericsson 1.068% 4/7/2016) (20/3/2019) 1, ,000 Credit Default Swaps (Barclays Bank) (Fund protection where necessary on Valeo SA 4.875% 11/5/2018) (20/6/2019) ,000 Credit Default Swaps (Barclays Bank) (Fund protection where necessary on Altice Finco SA 9.000% 15/6/2023) (20/6/2019) 3, ,000 Credit Default Swaps (Barclays Bank) (Fund protection where necessary on Altice Finco SA 9.000% 15/6/2023) (20/6/2019) 2, ,000 Credit Default Swaps (Barclays Bank) (Fund protection where necessary on Ardagh Packaging Finance Plc 9.250% 15/10/2020) (20/12/2017) 28,797 70,000 Credit Default Swaps (Barclays Bank) (Fund protection where necessary on Brisa Concessao Rodoviaria SA 1.068% 4/7/2016) (20/3/2019) 5,265 90,000 Credit Default Swaps (Barclays Bank) (Fund protection where necessary on Brisa Concessao Rodoviaria SA 1.068% 4/7/2016) (20/6/2019) 2, ,000 Credit Default Swaps (Barclays Bank) (Fund protection where necessary on British Airways PLC 8.75% 23/8/2016) (20/12/2018) 1, ,000 Credit Default Swaps (Barclays Bank) (Fund protection where necessary on Conti-Gummi Finance BV 7.500% (15/9/2017)) (20/3/2019) (71) 330,000 Credit Default Swaps (Barclays Bank) (Fund protection where necessary on EDP - Energias de Portugal SA 6.000% 7/12/2014) (20/6/2019) ,000 Credit Default Swaps (Barclays Bank) (Fund protection where necessary on Markit itraxx Europe Crossover Series 21 Version 1) (20/6/2019) 3, ,000 Credit Default Swaps (Barclays Bank) (Fund protection where necessary on Melia Hotels International SA 5.000% 18/12/2014) (20/6/2019) 2,138 72,000 Credit Default Swaps (Barclays Bank) (Fund protection where necessary on Metsa Board OYJ 4.000% 13/3/2019) (20/6/2019) ,000 Credit Default Swaps (Barclays Bank) (Fund protection where necessary on Metsa Board OYJ 4.000% 13/3/2019) (20/6/2019) 1, ,000 Credit Default Swaps (Barclays Bank) (Fund protection where necessary on Metsa Board OYJ 4.000% 13/3/2019) (20/6/2019) 1, ,000 Credit Default Swaps (Barclays Bank) (Fund protection where necessary on Metsa Board OYJ 4.000% 13/3/2019) (20/6/2019) 4, ,000 Credit Default Swaps (Barclays Bank) (Fund protection where necessary on Metsa Board OYJ 4.000% 13/3/2019) (20/6/2019) 2, ,000 Credit Default Swaps (Barclays Bank) (Fund protection where necessary on Metsa Board OYJ 4.000% 13/3/2019) (20/6/2019) 2, ,000 Credit Default Swaps (Barclays Bank) (Fund protection where necessary on Metsa Board OYJ 4.000% 13/3/2019) (20/6/2019) 1, ,000 Credit Default Swaps (Barclays Bank) (Fund protection where necessary on Metsa Board OYJ 4.000% 13/3/2019) (20/6/2019) 1, ,000 Credit Default Swaps (Barclays Bank) (Fund protection where necessary on Metsa Board OYJ 4.000% 13/3/2019) (20/6/2019) ,000 Credit Default Swaps (Barclays Bank) (Fund protection where necessary on Metsa Board OYJ 4.000% 13/3/2019) (20/6/2019) (41) 157,000 Credit Default Swaps (Barclays Bank) (Fund protection where necessary on Metsa Board OYJ 4.000% 13/3/2019) (20/6/2019) ,000 Credit Default Swaps (Barclays Bank) (Fund protection where necessary on New Look Bondco I Plc 8.750% 14/5/2018) (20/6/2019) 1, ,000 Credit Default Swaps (Barclays Bank) (Fund protection where necessary on NXP BV / NXP Funding LLC 5.750% 15/2/2021) (20/12/2018) 1,268 60,000 Credit Default Swaps (Barclays Bank) (Fund protection where necessary on UCB SA 3.750% 27/3/2020) (20/6/2019) ,000 Credit Default Swaps (BNP Paribas) (Fund receives default protection on BAT International Finance Plc 5.875% 12/3/2015 and pays Fixed 1.000%) (20/6/2019) BlackRock Strategic Funds (BSF)

155 BlackRock Global Absolute Return Bond Fund continued Swaps as at 31 May ,000 Credit Default Swaps (BNP Paribas) (Fund receives default protection on E.ON International Finance BV 6.375% 29/5/2017 and pays Fixed 1.000%) (20/6/2019) (4,177) 60,000 Credit Default Swaps (BNP Paribas) (Fund receives default protection on Electrolux AB FRN 7/4/2016 and pays Fixed 1.000%) (20/12/2018) (17) 390,000 Credit Default Swaps (BNP Paribas) (Fund receives default protection on Experian Finance Plc 1.068% 4/7/2016 and pays Fixed 1.000%) (20/6/2019) 3 200,000 Credit Default Swaps (BNP Paribas) (Fund receives default protection on Experian Finance Plc 4.750% 23/11/2018 and pays Fixed 1.000%) (20/6/2019) (46) 395,000 Credit Default Swaps (BNP Paribas) (Fund receives default protection on Experian Finance Plc 4.750% 23/11/2018 and pays Fixed 1.000%) (20/6/2019) (96) 530,000 Credit Default Swaps (BNP Paribas) (Fund receives default protection on Fiat Finance North America Inc 5.625% 12/6/2017 and pays Fixed 5.000%) (20/6/2019) (69) 202,000 Credit Default Swaps (BNP Paribas) (Fund receives default protection on Finmeccanica Finance SA/Old 5.750% 12/12/2018 and pays Fixed 5.000%) (20/6/2019) (1,541) 270,000 Credit Default Swaps (BNP Paribas) (Fund receives default protection on HeidelbergCement Finance Luxembourg SA 1.068% 4/7/2016 and pays Fixed 5.000%) (20/3/2019) (3,081) 200,000 Credit Default Swaps (BNP Paribas) (Fund receives default protection on HeidelbergCement Finance Luxembourg SA 1.068% 4/7/2016 and pays Fixed 5.000%) (20/3/2019) (5,523) 260,000 Credit Default Swaps (BNP Paribas) (Fund receives default protection on Koninklijke DSM NV 1.068% 4/7/2016 and pays Fixed 1.000%) (20/6/2019) (266) 264,000 Credit Default Swaps (BNP Paribas) (Fund receives default protection on Ladbrokes Group Finance Plc 7.625% 5/3/2017 and pays Fixed 1.000%) (20/6/2019) (4,721) 79,000 Credit Default Swaps (BNP Paribas) (Fund receives default protection on Ladbrokes Group Finance Plc 7.625% 5/3/2017 and pays Fixed 1.000%) (20/6/2019) (596) 78,000 Credit Default Swaps (BNP Paribas) (Fund receives default protection on Ladbrokes Group Finance Plc 7.625% 5/3/2017 and pays Fixed 1.000%) (20/6/2019) (890) 12,200,000 Credit Default Swaps (BNP Paribas) (Fund receives default protection on Markit itraxx Europe Series 21 Version 1 and pays Fixed 1.000%) (20/6/2019) (42,761) 156,322 Credit Default Swaps (BNP Paribas) (Fund receives default protection on Metro AG 7.625% 5/3/2015 and pays Fixed 1.000%) (20/6/2019) (2,309) 200,000 Credit Default Swaps (BNP Paribas) (Fund receives default protection on PostNL NV 1.068% 4/7/2016 and pays Fixed 1.000%) (20/3/2019) (3,550) 260,000 Credit Default Swaps (BNP Paribas) (Fund receives default protection on Qantas Airways Ltd 6.050% 15/4/2016 and pays Fixed 1.000%) (20/6/2019) (1,882) 150,000 Credit Default Swaps (BNP Paribas) (Fund receives default protection on SABMiller Plc 1.068% 4/7/2016 and pays Fixed 1.000%) (20/3/2019) (408) 130,000 Credit Default Swaps (BNP Paribas) (Fund receives default protection on SABMiller Plc 1.068% 4/7/2016 and pays Fixed 1.000%) (20/3/2019) (356) 130,000 Credit Default Swaps (BNP Paribas) (Fund receives default protection on SABMiller Plc 1.068% 4/7/2016 and pays Fixed 1.000%) (20/3/2019) (361) 60,000 Credit Default Swaps (BNP Paribas) (Fund receives default protection on Suedzucker International Finance BV 4.125% 29/3/2018 and pays Fixed 1.000%) (20/6/2018) 1, ,000 Credit Default Swaps (BNP Paribas) (Fund receives default protection on Tate & Lyle International Finance Plc 6.750% 25/11/2019 and pays Fixed 1.000%) (20/6/2019) (92) 140,000 Credit Default Swaps (BNP Paribas) (Fund receives default protection on Tate & Lyle International Finance Plc 6.750% 25/11/2019 and pays Fixed 1.000%) (20/6/2019) (76) 160,000 Credit Default Swaps (BNP Paribas) (Fund receives default protection on Tate & Lyle International Finance Plc 6.750% 25/11/2019 and pays Fixed 1.000%) (20/6/2019) (249) 790,000 Credit Default Swaps (BNP Paribas) (Fund receives default protection on Tesco Plc 6.000% 14/12/2029 and pays Fixed 1.000%) (20/6/2019) (9,989) 48,000 Credit Default Swaps (BNP Paribas) (Fund receives default protection on Virgin Media Finance Plc 1.068% 4/7/2016 and pays Fixed 5.000%) (20/3/2019) (1,347) 280,000 Credit Default Swaps (BNP Paribas) (Fund protection where necessary on Enel SpA 5.250% 20/6/2017) (20/6/2019) 1, ,000 Credit Default Swaps (BNP Paribas) (Fund protection where necessary on Rolls-Royce Plc 7.375% 14/6/2016) (20/12/2018) ,000 Credit Default Swaps (BNP Paribas) (Fund protection where necessary on Alcatel- Lucent 8.500% 15/1/2016) (20/6/2019) 14,917 60,000 Credit Default Swaps (BNP Paribas) (Fund protection where necessary on Dixons Retail Plc 8.750% 3/8/2015) (20/6/2018) 7,083 80,000 Credit Default Swaps (BNP Paribas) (Fund protection where necessary on Melia Hotels International SA 1.068% 4/7/2016) (20/3/2019) 3,847 30,000 Credit Default Swaps (BNP Paribas) (Fund protection where necessary on Melia Hotels International SA 1.068% 4/7/2016) (20/3/2019) 1,442 The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 153

156 BlackRock Global Absolute Return Bond Fund continued Swaps as at 31 May ,000 Credit Default Swaps (BNP Paribas) (Fund protection where necessary on Melia Hotels International SA 1.068% 4/7/2016) (20/3/2019) 2,519 40,000 Credit Default Swaps (BNP Paribas) (Fund protection where necessary on Melia Hotels International SA 1.068% 4/7/2016) (20/3/2019) 2,016 60,000 Credit Default Swaps (BNP Paribas) (Fund protection where necessary on Melia Hotels International SA 1.068% 4/7/2016) (20/3/2019) 3, ,000 Credit Default Swaps (BNP Paribas) (Fund protection where necessary on OTE Plc 1.068% 4/7/2016) (20/3/2019) 3, ,000 Credit Default Swaps (BNP Paribas) (Fund protection where necessary on OTE Plc 1.068% 4/7/2016) (20/3/2019) 2,648 71,000 Credit Default Swaps (BNP Paribas) (Fund protection where necessary on OTE Plc 1.068% 4/7/2016) (20/3/2019) 2,298 90,000 Credit Default Swaps (BNP Paribas) (Fund protection where necessary on OTE Plc 1.068% 4/7/2016) (20/3/2019) 55 86,000 Credit Default Swaps (BNP Paribas) (Fund protection where necessary on OTE Plc 4.625% 20/5/2016) (20/6/2019) (1,146) 10,000 Credit Default Swaps (BNP Paribas) (Fund protection where necessary on OTE PLC 4.625% 20/5/2016) (20/3/2018) 2,112 20,000 Credit Default Swaps (BNP Paribas) (Fund protection where necessary on OTE PLC 4.625% 20/5/2016) (20/3/2018) 3, ,000 Credit Default Swaps (Citibank) (Fund receives default protection on Akzo Nobel NV 8.000% 6/4/2016 and pays Fixed 1.000%) (20/6/2019) (4,648) 110,000 Credit Default Swaps (Citibank) (Fund receives default protection on Ardagh Packaging Finance Plc 9.250% 15/10/2020 and pays Fixed 5.000%) (20/6/2019) (159) 80,000 Credit Default Swaps (Citibank) (Fund receives default protection on Ardagh Packaging Finance Plc 9.250% 15/10/2020 and pays Fixed 5.000%) (20/6/2019) (116) 260,000 Credit Default Swaps (Citibank) (Fund receives default protection on Carlsberg Breweries A/S 1.068% 4/7/2016 and pays Fixed 1.000%) (20/3/2019) (1,602) 260,000 Credit Default Swaps (Citibank) (Fund receives default protection on Carlsberg Breweries A/S 3.375% 13/10/2017 and pays Fixed 1.000%) (20/6/2019) (1,760) 680,000 Credit Default Swaps (Citibank) (Fund receives default protection on Deutsche Lufthansa AG 6.500% 7/7/2016 and pays Fixed 1.000%) (20/6/2019) (1,899) 465,000 Credit Default Swaps (Citibank) (Fund receives default protection on Experian Finance Plc 4.750% 23/11/2018 and pays Fixed 1.000%) (20/6/2019) ,000 Credit Default Swaps (Citibank) (Fund receives default protection on Experian Finance Plc 4.750% 23/11/2018 and pays Fixed 1.000%) (20/6/2019) (467) 300,000 Credit Default Swaps (Citibank) (Fund receives default protection on Fiat Finance North America Inc 1.068% 4/7/2016 and pays Fixed 5.000%) (20/6/2019) (1,988) 270,000 Credit Default Swaps (Citibank) (Fund receives default protection on Fiat Finance North America Inc 5.625% 12/6/2017 and pays Fixed 5.000%) (20/6/2019) (1,784) 520,000 Credit Default Swaps (Citibank) (Fund receives default protection on Fiat Finance North America Inc 5.625% 12/6/2017 and pays Fixed 5.000%) (20/6/2019) 1, ,000 Credit Default Swaps (Citibank) (Fund receives default protection on Finmeccanica Finance SA/Old 5.750% 12/12/2018 and pays Fixed 5.000%) (20/12/2018) (24,361) 180,000 Credit Default Swaps (Citibank) (Fund receives default protection on J Sainsbury Plc 1.068% 4/7/2016 and pays Fixed 1.000%) (20/6/2019) (676) 400,000 Credit Default Swaps (Citibank) (Fund receives default protection on J Sainsbury Plc 4.250% 16/7/2014 and pays Fixed 1.000%) (20/6/2019) (3,357) 350,000 Credit Default Swaps (Citibank) (Fund receives default protection on Kering 3.750% 8/4/2015 and pays Fixed 1.000%) (20/6/2019) (1,819) 800,000 Credit Default Swaps (Citibank) (Fund receives default protection on Koninklijke DSM NV 4.000% 10/11/2015 and pays Fixed 1.000%) (20/6/2019) (1,610) 750,000 Credit Default Swaps (Citibank) (Fund receives default protection on Koninklijke KPN NV 8.375% 1/10/2030 and pays Fixed 1.000%) (20/3/2019) (7,298) 800,000 Credit Default Swaps (Citibank) (Fund receives default protection on Koninklijke KPN NV 8.375% 1/10/2030 and pays Fixed 1.000%) (20/3/2019) (6,986) 350,000 Credit Default Swaps (Citibank) (Fund receives default protection on Koninklijke Philips NV 5.750% 11/3/2018 and pays Fixed 1.000%) (20/6/2019) 1, ,000 Credit Default Swaps (Citibank) (Fund receives default protection on Koninklijke Philips NV 5.750% 11/3/2018 and pays Fixed 1.000%) (20/6/2019) ,000 Credit Default Swaps (Citibank) (Fund receives default protection on Ladbrokes Group Finance Plc 7.625% 5/3/2017 and pays Fixed 1.000%) (20/6/2019) (1,750) 33,990,000 Credit Default Swaps (Citibank) (Fund receives default protection on Markit itraxx Europe Series 21 Version 1 and pays Fixed 1.000%) (20/6/2019) (67,746) 530,000 Credit Default Swaps (Citibank) (Fund receives default protection on Metro AG 1.068% 4/7/2016 and pays Fixed 1.000%) (20/3/2019) (2,733) 250,000 Credit Default Swaps (Citibank) (Fund receives default protection on Metro AG 1.068% 4/7/2016 and pays Fixed 1.000%) (20/6/2019) (2,510) 570,000 Credit Default Swaps (Citibank) (Fund receives default protection on Metro AG 7.625% 5/3/2015 and pays Fixed 1.000%) (20/6/2019) (7,910) 154 BlackRock Strategic Funds (BSF)

157 BlackRock Global Absolute Return Bond Fund continued Swaps as at 31 May ,000 Credit Default Swaps (Citibank) (Fund receives default protection on Michelin Luxembourg SCS 2.75% 20/6/2019 and pays Fixed 1.000%) (20/12/2018) (2,452) 100,000 Credit Default Swaps (Citibank) (Fund receives default protection on Orange SA 1.068% 4/7/2016 and pays Fixed 1.000%) (20/3/2019) (1,024) 350,000 Credit Default Swaps (Citibank) (Fund receives default protection on PostNL NV 1.068% 4/7/2016 and pays Fixed 1.000%) (20/3/2019) (5,893) 215,000 Credit Default Swaps (Citibank) (Fund receives default protection on Rexel SA 5.125% 15/6/2020 and pays Fixed 5.000%) (20/6/2019) (2,962) 320,000 Credit Default Swaps (Citibank) (Fund receives default protection on RWE AG 5.750% 14/2/2033 and pays Fixed 1.000%) (20/12/2018) (5,906) 270,000 Credit Default Swaps (Citibank) (Fund receives default protection on SABMiller Plc 1.068% 4/7/2016 and pays Fixed 1.000%) (20/3/2019) (28) 650,000 Credit Default Swaps (Citibank) (Fund receives default protection on Securitas AB 6.500% 2/4/2013 and pays Fixed 1.000%) (20/9/2017) (13,048) 210,000 Credit Default Swaps (Citibank) (Fund receives default protection on SES SA 4.625% 9/3/2020 and pays Fixed 1.000%) (20/6/2019) (62) 210,000 Credit Default Swaps (Citibank) (Fund receives default protection on Societe Air France SA 2.75% 1/4/2020 and pays Fixed 5.000%) (20/12/2018) (16,027) 700,000 Credit Default Swaps (Citibank) (Fund receives default protection on St-Gobain Nederland BV 5.000% 25/4/2014 and pays Fixed 1.000%) (20/6/2018) (31,390) 170,000 Credit Default Swaps (Citibank) (Fund receives default protection on Suedzucker International Finance BV 4.125% 29/3/2018 and pays Fixed 1.000%) (20/6/2018) 2, ,000 Credit Default Swaps (Citibank) (Fund receives default protection on Suedzucker International Finance BV 4.125% 29/3/2018 and pays Fixed 1.000%) (20/6/2018) 2, ,000 Credit Default Swaps (Citibank) (Fund receives default protection on Tate & Lyle International Finance Plc 1.068% 4/7/2016 and pays Fixed 1.000%) (20/3/2019) ,000 Credit Default Swaps (Citibank) (Fund receives default protection on Telecom Italia SpA 5.375% 29/1/2019 and pays Fixed 1.000%) (20/6/2019) (801) 100,000 Credit Default Swaps (Citibank) (Fund receives default protection on Telecom Italia SpA 5.375% 29/1/2019 and pays Fixed 1.000%) (20/3/2018) (6,159) 400,000 Credit Default Swaps (Citibank) (Fund receives default protection on TeliaSonera AB 4.125% 11/5/2015 and pays Fixed 1.000%) (20/6/2019) ,000 Credit Default Swaps (Citibank) (Fund receives default protection on Tesco Plc 6.000% 14/12/2029 and pays Fixed 1.000%) (20/6/2019) (2,961) 340,000 Credit Default Swaps (Citibank) (Fund receives default protection on Vattenfall AB 5.375% 29/4/2024 and pays Fixed 1.000%) (20/6/2019) (1,634) 570,000 Credit Default Swaps (Citibank) (Fund receives default protection on Volkswagen International Finance NV 1.068% 4/7/2016 and pays Fixed 1.000%) (20/6/2019) (2,905) 850,000 Credit Default Swaps (Citibank) (Fund receives default protection on Volkswagen International Finance NV 5.375% 22/5/2018 and pays Fixed 1.000%) (20/6/2019) (3,144) 220,000 Credit Default Swaps (Citibank) (Fund receives default protection on Wolters Kluwer NV 1.068% 4/7/2016 and pays Fixed 1.000%) (20/3/2019) (663) 300,000 Credit Default Swaps (Citibank) (Fund receives Fixed 1.000% and provides default protection where necessary on BAE Systems Plc % 24/11/2014) (20/6/2019) ,000 Credit Default Swaps (Citibank) (Fund receives Fixed 1.000% and provides default protection where necessary on BP Plc 4.200% 15/6/2018) (20/6/2019) 1, ,000 Credit Default Swaps (Citibank) (Fund receives Fixed 1.000% and provides default protection where necessary on EDP - Energias de Portugal SA 6.000% 7/12/2014) (20/6/2019) ,990,000 Credit Default Swaps (Citibank) (Fund receives Fixed 1.000% and provides default protection where necessary on Markit itraxx Europe Series 21 Version 1) (20/6/2024) 127, ,000 Credit Default Swaps (Citibank) (Fund receives Fixed 1.000% and provides default protection where necessary on Next Plc 5.375% 26/10/2021) (20/12/2017) 2, ,000 Credit Default Swaps (Citibank) (Fund receives Fixed 1.000% and provides default protection where necessary on Rentokil Initial Plc 5.750% 31/3/2016) (20/6/2019) 2,754 1,540,000 Credit Default Swaps (Citibank) (Fund receives Fixed 1.000% and provides default protection where necessary on Rio Tinto Finance USA Ltd 6.500% 15/7/2018) (20/6/2019) (3,008) 1,390,000 Credit Default Swaps (Citibank) (Fund receives Fixed 1.000% and provides default protection where necessary on Vodafone Group Plc 5.000% 4/6/2018) (20/6/2019) 3,848 80,000 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection where necessary on Abengoa SA 8.500% 31/3/2016) (20/6/2019) 3,378 80,000 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection where necessary on Abengoa SA 8.500% 31/3/2016) (20/6/2019) 2, ,000 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection where necessary on Abengoa SA 8.500% 31/3/2016) (20/6/2019) (59) 90,000 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection where necessary on Brisa Concessao Rodoviaria SA 1.068% 4/7/2016) (20/3/2019) 4, ,000 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection where necessary on British Airways PLC 8.75% 23/8/2016) (20/12/2018) 4,070 The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 155

158 BlackRock Global Absolute Return Bond Fund continued Swaps as at 31 May ,000 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection where necessary on British Airways Plc 8.750% 23/8/2016) (20/12/2017) 4,768 60,000 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection where necessary on British Airways Plc 8.750% 23/8/2016) (20/12/2017) 6,715 48,077 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection where necessary on British Airways Plc 8.750% 23/8/2016) (20/6/2018) 4,661 50,000 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection where necessary on British Airways Plc 8.750% 23/8/2016) (20/6/2018) 3,839 10,000 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection where necessary on Dixons Retail Plc 8.750% 3/8/2015) (20/12/2017) 1,548 80,000 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection where necessary on EDP - Energias de Portugal SA 1.068% 4/7/2016) (20/12/2018) 2, ,000 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection where necessary on EDP - Energias de Portugal SA 1.068% 4/7/2016) (20/12/2018) 6,978 80,000 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection where necessary on EDP - Energias de Portugal SA 6.000% 7/12/2014) (20/6/2018) 3, ,000 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection where necessary on EDP - Energias de Portugal SA 6.000% 7/12/2014) (20/12/2018) 32,066 50,000 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection where necessary on EDP - Energias de Portugal SA 6.000% 7/12/2014) (20/12/2018) 4, ,000 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection where necessary on Galp Energia SGPS SA 4.125% 25/1/2019) (20/6/2019) 1,963 77,000 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection where necessary on Galp Energia SGPS SA 4.125% 25/1/2019) (20/6/2019) ,000 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection where necessary on Galp Energia SGPS SA 4.125% 25/1/2019) (20/6/2019) ,000 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection where necessary on ISS Global A/S 4.500% 8/12/2014) (20/12/2018) 5, ,000 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection where necessary on ISS Global A/S 4.500% 8/12/2014) (20/12/2018) 5,904 90,000 Credit Default Swaps (Citibank) (Fund receives Fixed 5.000% and provides default protection where necessary on ISS Global A/S 4.500% 8/12/2014) (20/12/2018) 5, ,000 Credit Default Swaps (Citibank) (Fund protection where necessary on ITV Plc 6.125% 5/1/2017) (20/6/2019) (3,249) 160,000 Credit Default Swaps (Citibank) (Fund protection where necessary on Louis Dreyfus Commodities BV 4.000% 4/12/2020) (20/6/2019) 4, ,000 Credit Default Swaps (Citibank) (Fund protection where necessary on Metsa Board OYJ 1.068% 4/7/2016) (20/3/2019) 2,779 72,000 Credit Default Swaps (Citibank) (Fund protection where necessary on Metsa Board OYJ 4.000% 13/3/2019) (20/3/2019) 1, ,000 Credit Default Swaps (Citibank) (Fund protection where necessary on NXP BV / NXP Funding LLC 2.961% 15/10/2013) (20/12/2018) 7, ,000 Credit Default Swaps (Citibank) (Fund protection where necessary on NXP BV / NXP Funding LLC 5.750% 15/2/2021) (20/6/2019) (14,916) 110,000 Credit Default Swaps (Citibank) (Fund protection where necessary on OTE Plc 1.068% 4/7/2016) (20/3/2019) 5, ,000 Credit Default Swaps (Citibank) (Fund protection where necessary on OTE Plc 1.068% 4/7/2016) (20/3/2019) 4, ,000 Credit Default Swaps (Citibank) (Fund protection where necessary on OTE Plc 1.068% 4/7/2016) (20/3/2019) 6, ,000 Credit Default Swaps (Citibank) (Fund protection where necessary on Peugeot SA 7.375% 6/3/2018) (20/6/2019) 2, ,000 Credit Default Swaps (Citibank) (Fund protection where necessary on Schaeffler Finance BV 7.75% 15/2/2017) (20/12/2018) 1, ,000 Credit Default Swaps (Citibank) (Fund protection where necessary on Stora Enso OYJ 5.000% 19/3/2018) (20/6/2019) (1,106) 150,000 Credit Default Swaps (Citibank) (Fund protection where necessary on UCB SA 3.750% 27/3/2020) (20/6/2019) 6,014 9,050,000 Credit Default Swaps (Citigroup Global Markets) (Fund receives default protection on Markit itraxx Europe Series 21 Version 1 and pays Fixed 1.000%) (20/6/2019) (54,244) 6,970,000 Credit Default Swaps (Citigroup Global Markets) (Fund receives default protection on Markit itraxx Europe Series 21 Version 1 and pays Fixed 1.000%) (20/6/2019) 4,454 13,445,000 Credit Default Swaps (Citigroup Global Markets) (Fund receives default protection on Markit itraxx Europe Series 21 Version 1 and pays Fixed 1.000%) (20/6/2019) 1, BlackRock Strategic Funds (BSF)

159 BlackRock Global Absolute Return Bond Fund continued Swaps as at 31 May ,125,000 Credit Default Swaps (Citigroup Global Markets) (Fund receives default protection on Markit itraxx Europe Series 21 Version 1 and pays Fixed 1.000%) (20/6/2019) (4,792) 7,825,000 Credit Default Swaps (Citigroup Global Markets) (Fund receives default protection on Markit itraxx Europe Series 21 Version 1 and pays Fixed 1.000%) (20/6/2019) (14,219) 7,815,000 Credit Default Swaps (Citigroup Global Markets) (Fund receives default protection on Markit itraxx Europe Series 21 Version 1 and pays Fixed 1.000%) (20/6/2019) (12,349) 144,014 Credit Default Swaps (Credit Suisse) (Fund receives default protection on ArcelorMittal 1.068% 4/7/2016 and pays Fixed 1.000%) (20/6/2019) (4,626) 38,962 Credit Default Swaps (Credit Suisse) (Fund receives default protection on ArcelorMittal 1.068% 4/7/2016 and pays Fixed 1.000%) (20/6/2019) (1,203) 71,925 Credit Default Swaps (Credit Suisse) (Fund receives default protection on ArcelorMittal 1.068% 4/7/2016 and pays Fixed 1.000%) (20/6/2019) (2,267) 74,608 Credit Default Swaps (Credit Suisse) (Fund receives default protection on ArcelorMittal 1.068% 4/7/2016 and pays Fixed 1.000%) (20/6/2019) (2,864) 119,457 Credit Default Swaps (Credit Suisse) (Fund receives default protection on ArcelorMittal 1.068% 4/7/2016 and pays Fixed 1.000%) (20/6/2019) (4,586) 1,400,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on AXA SA 4.500% 23/1/2015 and pays Fixed 1.000%) (20/6/2018) (86,874) 190,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Carlsberg Breweries A/S 3.375% 13/10/2017 and pays Fixed 1.000%) (20/6/2019) (1,765) 570,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Carlsberg Breweries A/S 3.375% 13/10/2017 and pays Fixed 1.000%) (20/6/2019) (5,575) 240,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Deutsche Telekom International Finance BV 6.000% 20/1/2017 and pays Fixed 1.000%) (20/6/2019) (799) 240,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Deutsche Telekom International Finance BV 6.000% 20/1/2017 and pays Fixed 1.000%) (20/6/2019) (555) 240,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Deutsche Telekom International Finance BV 6.000% 20/1/2017 and pays Fixed 1.000%) (20/6/2019) (555) 260,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Deutsche Telekom International Finance BV 6.000% 20/1/2017 and pays Fixed 1.000%) (20/6/2019) (737) 260,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Deutsche Telekom International Finance BV 6.000% 20/1/2017 and pays Fixed 1.000%) (20/6/2019) (878) 262,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Finmeccanica Finance SA/Old 5.750% 12/12/2018 and pays Fixed 5.000%) (20/6/2019) (1,976) 100,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Finmeccanica Finance SA/Old 5.750% 12/12/2018 and pays Fixed 5.000%) (20/3/2018) (6,954) 300,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Finmeccanica Finance SA/Old 5.750% 12/12/2018 and pays Fixed 5.000%) (20/12/2018) (13,457) 20,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Infineon Technologies Holding BV 7.500% 26/5/2014 and pays Fixed 5.000%) (20/12/2017) (1,164) 140,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Koninklijke DSM NV 1.068% 4/7/2016 and pays Fixed 1.000%) (20/3/2019) ,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Koninklijke KPN NV 7.500% 4/2/2019 and pays Fixed 1.000%) (20/6/2019) (646) 555,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Koninklijke KPN NV 8.375% 1/10/2030 and pays Fixed 1.000%) (20/3/2019) (4,863) 240,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Koninklijke Philips NV 1.068% 4/7/2016 and pays Fixed 1.000%) (20/6/2019) 1, ,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Ladbrokes Group Finance Plc 7.625% 5/3/2017 and pays Fixed 1.000%) (20/6/2019) (2,039) 136,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Ladbrokes Group Finance Plc 7.625% 5/3/2017 and pays Fixed 1.000%) (20/6/2019) (2,432) 100,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on LANXESS Finance BV 7.750% 9/4/2014 and pays Fixed 1.000%) (20/3/2018) (2,668) 290,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Metro AG 1.068% 4/7/2016 and pays Fixed 1.000%) (20/3/2019) (1,642) 140,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Metro AG 1.068% 4/7/2016 and pays Fixed 1.000%) (20/3/2019) (1,182) 900,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Orange SA 1.068% 4/7/2016 and pays Fixed 1.000%) (20/3/2019) (8,315) The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 157

160 BlackRock Global Absolute Return Bond Fund continued Swaps as at 31 May ,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Pearson Plc 1.068% 4/7/2016 and pays Fixed 1.000%) (20/3/2019) ,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Pearson Plc 1.068% 4/7/2016 and pays Fixed 1.000%) (20/3/2019) ,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Portugal Telecom International Finance BV 1.068% 4/7/2016 and pays Fixed 5.000%) (20/6/2019) (9,169) 70,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Portugal Telecom International Finance BV 1.068% 4/7/2016 and pays Fixed 5.000%) (20/6/2019) (2,177) 285,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Portugal Telecom International Finance BV 4.375% 24/3/2017 and pays Fixed 5.000%) (20/6/2019) (10,698) 510,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Portugal Telecom International Finance BV 4.375% 24/3/2017 and pays Fixed 5.000%) (20/6/2019) (3,300) 510,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Portugal Telecom International Finance BV 4.375% 24/3/2017 and pays Fixed 5.000%) (20/6/2019) (2,569) 140,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on PostNL NV 1.068% 4/7/2016 and pays Fixed 1.000%) (20/3/2019) (2,094) 470,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on PostNL NV 1.068% 4/7/2016 and pays Fixed 1.000%) (20/3/2019) (8,094) 940,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on PostNL NV 1.068% 4/7/2016 and pays Fixed 1.000%) (20/3/2019) (13,773) 250,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on PostNL NV 3.875% 1/6/2015 and pays Fixed 1.000%) (20/6/2019) (2,101) 40,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on PostNL NV 3.875% 1/6/2015 and pays Fixed 1.000%) (20/6/2018) (3,595) 150,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on SABMiller Plc 1.068% 4/7/2016 and pays Fixed 1.000%) (20/3/2019) (581) 10,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Scandinavian Airlines 9.650% 15/6/2014 and pays Fixed 5.000%) (20/6/2019) ,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Scandinavian Airlines 9.650% 15/6/2014 and pays Fixed 5.000%) (20/6/2019) 1, ,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Siemens Financieringsmaatschappij NV 5.625% 11/6/2018 and pays Fixed 1.000%) (20/6/2017) (4,738) 300,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Stena AB 6.125% 1/2/2017 and pays Fixed 5.000%) (20/9/2017) (59,651) 300,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Suedzucker International Finance BV 4.125% 29/3/2018 and pays Fixed 1.000%) (20/6/2019) 3, ,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Tate & Lyle International Finance Plc 6.750% 25/11/2019 and pays Fixed 1.000%) (20/6/2018) (939) 50,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on TDC A/S 5.875% 16/12/2015 and pays Fixed 1.000%) (20/3/2018) (570) 30,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on TDC A/S 5.875% 16/12/2015 and pays Fixed 1.000%) (20/3/2018) (282) 60,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Technip SA 5.000% 27/7/2020 and pays Fixed 1.000%) (20/6/2019) (484) 410,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Telecom Italia SpA 5.375% 29/1/2019 and pays Fixed 1.000%) (20/6/2019) (10,801) 315,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Telecom Italia SpA 5.375% 29/1/2019 and pays Fixed 1.000%) (20/6/2019) (7,114) 290,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Telecom Italia SpA 5.375% 29/1/2019 and pays Fixed 1.000%) (20/6/2019) (6,549) 895,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Telecom Italia SpA 5.375% 29/1/2019 and pays Fixed 1.000%) (20/6/2019) (16,358) 350,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Telecom Italia SpA 5.375% 29/1/2019 and pays Fixed 1.000%) (20/6/2019) (4,983) 570,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Telefonica Emisiones SAU 1.068% 4/7/2016 and pays Fixed 1.000%) (20/6/2019) (13,541) 290,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Telefonica Emisiones SAU 4.375% 2/2/2016 and pays Fixed 1.000%) (20/6/2019) (7,936) 350,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Telefonica Emisiones SAU 4.375% 2/2/2016 and pays Fixed 1.000%) (20/6/2019) (6,485) 300,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Telefonica Emisiones SAU 4.375% 2/2/2016 and pays Fixed 1.000%) (20/6/2019) (4,528) 158 BlackRock Strategic Funds (BSF)

161 BlackRock Global Absolute Return Bond Fund continued Swaps as at 31 May ,070,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Telefonica Emisiones SAU 4.375% 2/2/2016 and pays Fixed 1.000%) (20/6/2019) (17,707) 319,251 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Veolia Environnement SA 5.375% 28/5/2018 and pays Fixed 1.000%) (20/6/2019) (3,111) 155,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Virgin Media Finance Plc 1.068% 4/7/2016 and pays Fixed 5.000%) (20/3/2019) (5,075) 526,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Vivendi SA 4.875% 2/12/2019 and pays Fixed 1.000%) (20/6/2019) (521) 527,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Vivendi SA 4.875% 2/12/2019 and pays Fixed 1.000%) (20/6/2019) (785) 150,000 Credit Default Swaps (Credit Suisse) (Fund receives default protection on Wolters Kluwer NV 1.068% 4/7/2016 and pays Fixed 1.000%) (20/3/2019) (296) 290,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Anglo American Capital Plc 5.875% 17/4/2015) (20/6/2019) 1, ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Anheuser- Busch InBev NV 8.625% 30/1/2017) (20/6/2019) 950 1,400,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Aviva Plc 9.500% 20/6/2016) (20/6/2018) 83, ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Cap Gemini SA 5.250% 29/11/2016) (20/6/2019) ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Continental AG 1.068% 4/7/2016) (20/3/2019) 1,646 1,110,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Glencore Finance Europe SA 6.500% 27/2/2019) (20/6/2019) 17, ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Havas SA 5.500% 4/11/2014) (20/3/2018) 17, ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Kingfisher Plc 5.625% 15/12/2014) (20/6/2019) 2, ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Rolls-Royce Plc 7.375% 14/6/2016) (20/6/2017) 12, ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Abengoa SA 8.500% 31/3/2016) (20/6/2019) 2, ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Abengoa SA 8.500% 31/3/2016) (20/6/2019) 2,790 80,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Abengoa SA 8.500% 31/3/2016) (20/6/2019) 1,478 29,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Abengoa SA 8.500% 31/3/2016) (20/6/2019) ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Abengoa SA 8.500% 31/3/2016) (20/6/2019) 1, ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Abengoa SA 8.500% 31/3/2016) (20/6/2019) 2, ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Abengoa SA 8.500% 31/3/2016) (20/6/2019) 3, ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Alcatel- Lucent 8.500% 15/1/2016) (20/6/2019) ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Alcatel- Lucent 8.500% 15/1/2016) (20/6/2019) ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Anglo American Capital Plc 1.068% 4/7/2016) (20/12/2018) 1,798 1,010,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Ardagh Packaging Finance Plc 9.250% 15/10/2020) (20/6/2019) (11,397) 80,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Brisa Concessao Rodoviaria SA 1.068% 4/7/2016) (20/6/2019) 2, ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Brisa Concessao Rodoviaria SA 4.500% 5/12/2016) (20/6/2019) 22, ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on British Airways Plc 1.068% 4/7/2016) (20/3/2019) (87) 10,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on British Airways Plc 8.750% 23/8/2016) (20/3/2018) ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on British Airways Plc 8.750% 23/8/2016) (20/6/2018) 770 The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 159

162 BlackRock Global Absolute Return Bond Fund continued Swaps as at 31 May ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on British Airways Plc 8.750% 23/8/2016) (20/6/2018) 7, ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Cable & Wireless International Finance BV 8.625% 25/3/2019) (20/6/2019) 7, ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Cerved Group SpA 8.000% 15/1/2021) (20/6/2019) 24, ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on ConvaTec Healthcare E SA % 15/12/2018) (20/6/2019) 10, ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Dixons Retail Plc 8.750% 3/8/2015) (20/6/2019) 8,202 1,350,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Dixons Retail Plc 8.750% 3/8/2015) (20/6/2019) 36, ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on EDP - Energias de Portugal SA 6.000% 7/12/2014) (20/6/2019) 3, ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on EDP - Energias de Portugal SA 6.000% 7/12/2014) (20/6/2019) 3, ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on EDP - Energias de Portugal SA 6.000% 7/12/2014) (20/6/2019) 1,912 20,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on EDP - Energias de Portugal SA 6.000% 7/12/2014) (20/6/2018) 1,770 20,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Eileme 2 AB % 31/1/2020) (20/12/2017) 4,628 70,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Eileme 2 AB % 31/1/2020) (20/12/2017) 14, ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Galp Energia SGPS SA 4.125% 25/1/2019) (20/6/2019) (446) 90,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Galp Energia SGPS SA 4.125% 25/1/2019) (20/6/2019) (204) 90,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Galp Energia SGPS SA 4.125% 25/1/2019) (20/6/2019) (204) 88,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on INEOS Group Holdings SA 6.500% 15/8/2018) (20/6/2019) ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Infineon Technologies Holding BV 7.500% 26/5/2014) (20/12/2018) 2, ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on ITV Plc 6.125% 5/1/2017) (20/6/2019) (418) 390,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Jaguar Land Rover Automotive Plc 8.125% 15/5/2018) (20/6/2019) (2,785) 290,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Louis Dreyfus Commodities BV 4.000% 4/12/2020) (20/6/2019) 9,258 80,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Louis Dreyfus Commodities BV 4.000% 4/12/2020) (20/6/2019) 2, ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Louis Dreyfus Commodities BV 4.000% 4/12/2020) (20/6/2019) 5, ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Melia Hotels International SA 5.000% 18/12/2014) (20/6/2019) 5,707 87,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Melia Hotels International SA 5.000% 18/12/2014) (20/6/2019) 3, ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Melia Hotels International SA 5.000% 18/12/2014) (20/6/2019) 12, ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Melia Hotels International SA 5.000% 18/12/2014) (20/6/2019) (1,082) 162,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Metsa Board OYJ 4.000% 13/3/2019) (20/6/2019) ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Metsa Board OYJ 4.000% 13/3/2019) (20/6/2019) (544) 40,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on New Look Bondco I Plc 8.750% 14/5/2018) (20/12/2018) 5,935 40,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on New Look Bondco I Plc 8.750% 14/5/2018) (20/12/2018) 5, BlackRock Strategic Funds (BSF)

163 BlackRock Global Absolute Return Bond Fund continued Swaps as at 31 May ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on New Look Bondco I Plc 8.750% 14/5/2018) (20/12/2018) 5,785 90,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on New Look Bondco I Plc 8.750% 14/5/2018) (20/12/2018) 9,866 40,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Nokia OYJ 1.068% 4/7/2016) (20/12/2018) 29 40,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Nokia OYJ 1.068% 4/7/2016) (20/12/2018) 29 30,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Nokia OYJ 1.068% 4/7/2016) (20/12/2018) ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Nokia OYJ 6.750% 4/2/2019) (20/6/2019) 1, ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Nokia OYJ 6.750% 4/2/2019) (20/6/2019) 1, ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Nokia OYJ 6.750% 4/2/2019) (20/6/2019) 1, ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Nokia OYJ 6.750% 4/2/2019) (20/6/2019) (483) 260,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Nokia OYJ 6.750% 4/2/2019) (20/6/2019) (591) 410,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Nokia OYJ 6.750% 4/2/2019) (20/6/2019) (455) 790,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Numericable Group SA 5.375% 15/5/2022) (20/6/2019) 19, ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Numericable Group SA 5.375% 15/5/2022) (20/6/2019) 12, ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Numericable Group SA 5.375% 15/5/2022) (20/6/2019) 5, ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Numericable Group SA 5.375% 15/5/2022) (20/6/2019) 6,595 30,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on NXP BV / NXP Funding LLC 1.068% 4/7/2016) (20/12/2018) ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on NXP BV / NXP Funding LLC 2.961% 15/10/2013) (20/6/2018) 35,244 41,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on OTE Plc 1.068% 4/7/2016) (20/3/2019) 1,013 7,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on OTE Plc 1.068% 4/7/2016) (20/3/2019) ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on OTE Plc 1.068% 4/7/2016) (20/3/2019) 287 7,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on OTE Plc 1.068% 4/7/2016) (20/3/2019) ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on OTE PLC 4.625% 20/5/2016) (20/3/2018) 8,146 54,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Peugeot SA 1.068% 4/7/2016) (20/3/2019) ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Peugeot SA 1.068% 4/7/2016) (20/3/2019) ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Peugeot SA 1.068% 4/7/2016) (20/3/2019) ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Peugeot SA 1.068% 4/7/2016) (20/3/2019) ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Peugeot SA 1.068% 4/7/2016) (20/3/2019) 98 13,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Peugeot SA 1.068% 4/7/2016) (20/3/2019) 93 2,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Peugeot SA 7.375% 6/3/2018) (20/6/2019) 17 1,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Peugeot SA 7.375% 6/3/2018) (20/6/2019) (4) 1,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Peugeot SA 7.375% 6/3/2018) (20/6/2019) ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Peugeot SA 7.375% 6/3/2018) (20/6/2019) (1) The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 161

164 BlackRock Global Absolute Return Bond Fund continued Swaps as at 31 May ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Schaeffler Finance BV 7.750% 15/2/2017) (20/12/2017) ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Schaeffler Finance BV 7.750% 15/2/2017) (20/12/2017) 1, ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Schaeffler Finance BV 7.750% 15/2/2017) (20/12/2017) 9,323 10,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Schaeffler Finance BV 7.750% 15/2/2017) (20/12/2017) ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Schaeffler Finance BV 7.750% 15/2/2017) (20/3/2018) 7, ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Smurfit Kappa Acquisitions 3.727% 15/10/2020) (20/9/2018) 26,395 60,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Smurfit Kappa Acquisitions 3.727% 15/10/2020) (20/9/2018) (142) 190,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Techem GmbH 6.125% 1/10/2019) (20/12/2018) 6,861 90,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Techem GmbH 6.125% 1/10/2019) (20/12/2018) 2,203 60,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Techem GmbH 6.125% 1/10/2019) (20/12/2018) 1, ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on TUI AG 1.068% 4/7/2016) (20/3/2019) (279) 136,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on TVN Finance Corp III AB 7.375% 15/12/2020) (20/6/2019) 9, ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on TVN Finance Corp III AB 7.375% 15/12/2020) (20/6/2019) 9, ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on TVN Finance Corp III AB 7.375% 15/12/2020) (20/6/2019) 3,537 90,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on UCB SA 3.750% 27/3/2020) (20/6/2019) 2, ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on UCB SA 3.750% 27/3/2020) (20/6/2019) 1,825 60,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on UCB SA 3.750% 27/3/2020) (20/6/2019) ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on UCB SA 3.750% 27/3/2020) (20/6/2019) ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on UCB SA 3.750% 27/3/2020) (20/6/2019) ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on UCB SA 3.750% 27/3/2020) (20/6/2019) ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on UCB SA 3.750% 27/3/2020) (20/6/2019) ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on UPM- Kymmene OYJ 5.625% 1/12/2014) (20/6/2019) ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Wendel SA 4.875% 26/5/2016) (20/6/2019) 6, ,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Wendel SA 4.875% 26/5/2016) (20/6/2019) 35 90,000 Credit Default Swaps (Credit Suisse) (Fund protection where necessary on Wendel SA 4.875% 26/5/2016) (20/3/2018) 4, ,000 Credit Default Swaps (Deutsche Asset Management Life) (Fund receives default protection on Akzo Nobel NV 8.000% 6/4/2016 and pays Fixed 1.000%) (20/6/2019) (3,075) 100,000 Credit Default Swaps (Deutsche Asset Management Life) (Fund receives default protection on Pearson Plc 7.000% 27/10/2014 and pays Fixed 1.000%) (20/6/2018) (817) 200,000 Credit Default Swaps (Deutsche Asset Management Life) (Fund receives default protection on PostNL NV 1.068% 4/7/2016 and pays Fixed 1.000%) (20/3/2019) (3,631) 50,000 Credit Default Swaps (Deutsche Asset Management Life) (Fund receives default protection on TDC A/S 4.375% 23/2/2018 and pays Fixed 1.000%) (20/3/2018) (597) 510,000 Credit Default Swaps (Deutsche Asset Management Life) (Fund receives Fixed 1.000% and provides default protection where necessary on Anglo American Capital Plc 5.875% 17/4/2015) (20/6/2019) 6,166 60,000 Credit Default Swaps (Deutsche Asset Management Life) (Fund receives Fixed 1.000% and provides default protection where necessary on National Grid Plc 5.000% 2/7/2018) (20/6/2018) BlackRock Strategic Funds (BSF)

165 BlackRock Global Absolute Return Bond Fund continued Swaps as at 31 May ,000 Credit Default Swaps (Deutsche Asset Management Life) (Fund receives Fixed 5.000% and provides default protection where necessary on Eileme 2 AB % (31/1/2020)) (20/12/2017) 4, ,000 Credit Default Swaps (Deutsche Asset Management Life) (Fund receives Fixed 5.000% and provides default protection where necessary on ISS Global A/S 4.500% 8/12/2014) (20/12/2018) 5,563 10,000 Credit Default Swaps (Deutsche Asset Management Life) (Fund receives Fixed 5.000% and provides default protection where necessary on OTE PLC 4.625% 20/5/2016) (20/3/2018) 1, ,000 Credit Default Swaps (Deutsche Bank Management Life) (Fund receives default protection on Societe Air France SA 2.75% 1/4/2020 and pays Fixed 5.000%) (20/12/2018) (9,223) 1,105,000 Credit Default Swaps (Deutsche Bank) (Fund receives default protection on Banco Bilbao Vizcaya Argentaria SA 4.375% 20/10/2019 and pays Fixed 3.000%) (20/3/2019) (28,492) 95,000 Credit Default Swaps (Deutsche Bank) (Fund receives default protection on Bouygues SA 4.750% 24/5/2016 and pays Fixed 1.000%) (20/9/2017) (4,127) 260,000 Credit Default Swaps (Deutsche Bank) (Fund receives default protection on Deutsche Lufthansa AG 6.500% 7/7/2016 and pays Fixed 1.000%) (20/6/2019) (1,109) 80,000 Credit Default Swaps (Deutsche Bank) (Fund receives default protection on Deutsche Lufthansa AG 6.500% 7/7/2016 and pays Fixed 1.000%) (20/6/2019) (341) 170,000 Credit Default Swaps (Deutsche Bank) (Fund receives default protection on Fiat Finance North America Inc 5.625% 12/6/2017 and pays Fixed 5.000%) (20/12/2018) (10,542) 20,000 Credit Default Swaps (Deutsche Bank) (Fund receives default protection on Fiat Finance North America Inc 5.625% 12/6/2017 and pays Fixed 5.000%) (20/12/2018) (1,374) 20,000 Credit Default Swaps (Deutsche Bank) (Fund receives default protection on Fiat Finance North America Inc 5.625% 12/6/2017 and pays Fixed 5.000%) (20/12/2018) (1,331) 270,000 Credit Default Swaps (Deutsche Bank) (Fund receives default protection on HeidelbergCement Finance Luxembourg SA 1.068% 4/7/2016 and pays Fixed 1.000%) (20/3/2019) (35) 130,000 Credit Default Swaps (Deutsche Bank) (Fund receives default protection on HeidelbergCement Finance Luxembourg SA 1.068% 4/7/2016 and pays Fixed 5.000%) (20/3/2019) (1,614) 485,000 Credit Default Swaps (Deutsche Bank) (Fund receives default protection on itraxx Europe Series 21 Version 1 and pays Fixed 1.000%) (20/6/2019) (258) 425,000 Credit Default Swaps (Deutsche Bank) (Fund receives default protection on itraxx Europe Series 21 Version 1 and pays Fixed 1.000%) (20/6/2019) ,000 Credit Default Swaps (Deutsche Bank) (Fund receives default protection on itraxx Europe Series 21 Version 1 and pays Fixed 1.000%) (20/6/2019) ,000 Credit Default Swaps (Deutsche Bank) (Fund receives default protection on itraxx Europe Series 21 Version 1 and pays Fixed 1.000%) (20/6/2019) ,000 Credit Default Swaps (Deutsche Bank) (Fund receives default protection on Koninklijke DSM NV 1.068% 4/7/2016 and pays Fixed 1.000%) (20/3/2019) (284) 415,000 Credit Default Swaps (Deutsche Bank) (Fund receives default protection on Koninklijke KPN NV 8.375% 1/10/2030 and pays Fixed 1.000%) (20/3/2019) (3,839) 360,000 Credit Default Swaps (Deutsche Bank) (Fund receives default protection on LANXESS Finance BV 7.750% 9/4/2014 and pays Fixed 1.000%) (20/12/2018) (8,451) 5,050,000 Credit Default Swaps (Deutsche Bank) (Fund receives default protection on Markit itraxx Europe Crossover Series 20 Version 1 and pays Fixed 5.000%) (20/12/2018) (187,667) 3,190,000 Credit Default Swaps (Deutsche Bank) (Fund receives default protection on Markit itraxx Europe Crossover Series 21 Version 1 and pays Fixed 5.000%) (20/6/2019) (35,043) 5,550,000 Credit Default Swaps (Deutsche Bank) (Fund receives default protection on Markit itraxx Europe Series 21 Version 1 and pays Fixed 1.000%) (20/6/2019) (11,816) 16,150,000 Credit Default Swaps (Deutsche Bank) (Fund receives default protection on Markit itraxx Europe Series 21 Version 1 and pays Fixed 1.000%) (20/6/2019) (358) 7,650,000 Credit Default Swaps (Deutsche Bank) (Fund receives default protection on Markit itraxx Europe Series 21 Version 1 and pays Fixed 1.000%) (20/6/2019) (16,065) 170,000 Credit Default Swaps (Deutsche Bank) (Fund receives default protection on Metro AG 1.068% 4/7/2016 and pays Fixed 1.000%) (20/3/2019) (1,367) 410,000 Credit Default Swaps (Deutsche Bank) (Fund receives default protection on Pearson Plc 1.068% 4/7/2016 and pays Fixed 1.000%) (20/3/2019) (122) 260,000 Credit Default Swaps (Deutsche Bank) (Fund receives default protection on PostNL NV 3.875% 1/6/2015 and pays Fixed 1.000%) (20/6/2019) (2,308) 890,000 Credit Default Swaps (Deutsche Bank) (Fund receives default protection on Qantas Airways Ltd 6.050% 15/4/2016 and pays Fixed 1.000%) (20/6/2019) (17,249) 370,000 Credit Default Swaps (Deutsche Bank) (Fund receives default protection on Qantas Airways Ltd 6.050% 15/4/2016 and pays Fixed 1.000%) (20/6/2019) (7,171) 310,000 Credit Default Swaps (Deutsche Bank) (Fund receives default protection on SABMiller Plc 1.068% 4/7/2016 and pays Fixed 1.000%) (20/3/2019) (369) The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 163

166 BlackRock Global Absolute Return Bond Fund continued Swaps as at 31 May ,000 Credit Default Swaps (Deutsche Bank) (Fund receives default protection on Societe Air France SA 2.750% 1/4/2020 and pays Fixed 5.000%) (20/9/2018) (1,545) 100,000 Credit Default Swaps (Deutsche Bank) (Fund receives default protection on Solvay SA 4.625% 27/6/2018 and pays Fixed 1.000%) (20/6/2019) (868) 280,000 Credit Default Swaps (Deutsche Bank) (Fund receives default protection on Tesco Plc 6.000% 14/12/2029 and pays Fixed 1.000%) (20/6/2019) (908) 290,000 Credit Default Swaps (Deutsche Bank) (Fund receives default protection on Tesco Plc 6.000% 14/12/2029 and pays Fixed 1.000%) (20/6/2019) (1,378) 280,000 Credit Default Swaps (Deutsche Bank) (Fund protection on J Sainsbury Plc 4.250% 16/7/2014) (20/6/2019) (329) 290,000 Credit Default Swaps (Deutsche Bank) (Fund protection on J Sainsbury Plc 4.250% 16/7/2014) (20/6/2019) 89 1,030,000 Credit Default Swaps (Deutsche Bank) (Fund protection where necessary on Anglo American Capital Plc 5.875% 17/4/2015) (20/6/2019) 10, ,000 Credit Default Swaps (Deutsche Bank) (Fund protection where necessary on Heathrow Funding Ltd 4.600% 15/2/2018) (20/12/2018) 3, ,000 Credit Default Swaps (Deutsche Bank) (Fund protection where necessary on Kingfisher Plc 5.625% 15/12/2014) (20/6/2019) 2, ,000 Credit Default Swaps (Deutsche Bank) (Fund protection where necessary on Next Plc 5.375% 26/10/2021) (20/12/2018) 1, ,000 Credit Default Swaps (Deutsche Bank) (Fund protection where necessary on Renault SA 1.068% 4/7/2016) (20/3/2019) 8,974 60,000 Credit Default Swaps (Deutsche Bank) (Fund protection where necessary on Renault SA 1.068% 4/7/2016) (20/3/2019) 1, ,000 Credit Default Swaps (Deutsche Bank) (Fund protection where necessary on Rio Tinto Finance USA Ltd 6.500% 15/7/2018) (20/6/2019) 58 1,105,000 Credit Default Swaps (Deutsche Bank) (Fund receives Fixed 3.000% and provides default protection on Banco Santander SA 5.780% 17/2/2028) (20/3/2019) 29, ,000 Credit Default Swaps (Deutsche Bank) (Fund protection where necessary on Infineon Technologies Holding BV 7.500% 26/5/2014) (20/9/2018) 2,708 1,290,000 Credit Default Swaps (Deutsche Bank) (Fund protection where necessary on Markit itraxx Europe Crossover Series 21 Version 1) (20/6/2019) 9,668 40,000 Credit Default Swaps (Deutsche Bank) (Fund protection where necessary on UCB SA 3.750% 27/3/2020) (20/6/2019) ,000 Credit Default Swaps (Deutsche Bank) (Fund protection where necessary on Wendel SA 4.875% 26/5/2016) (20/12/2018) 3,938 42,000 Credit Default Swaps (Goldman Sachs) (Fund receives default protection on Ardagh Packaging Finance Plc 9.250% 15/10/2020 and pays Fixed 5.000%) (20/6/2019) (246) 160,000 Credit Default Swaps (Goldman Sachs) (Fund receives default protection on Ardagh Packaging Finance Plc 9.250% 15/10/2020 and pays Fixed 5.000%) (20/6/2019) (14) 765,000 Credit Default Swaps (Goldman Sachs) (Fund receives default protection on BAT International Finance Plc 5.875% 12/3/2015 and pays Fixed 1.000%) (20/6/2019) 2, ,000 Credit Default Swaps (Goldman Sachs) (Fund receives default protection on British Telecommunications Plc 5.750% 7/12/2028 and pays Fixed 1.000%) (20/6/2019) (1,200) 130,000 Credit Default Swaps (Goldman Sachs) (Fund receives default protection on Clariant Finance Luxembourg SA 4.375% 5/4/2013 and pays Fixed 1.000%) (20/3/2018) (7,650) 400,000 Credit Default Swaps (Goldman Sachs) (Fund receives default protection on Deutsche Lufthansa AG 6.500% 7/7/2016 and pays Fixed 1.000%) (20/6/2019) (1,312) 110,000 Credit Default Swaps (Goldman Sachs) (Fund receives default protection on Electrolux AB FRN 1.068% 4/7/2016 and pays Fixed 1.000%) (20/12/2018) (93) 540,000 Credit Default Swaps (Goldman Sachs) (Fund receives default protection on Enbw International Finance BV 4.250% 19/10/2016 and pays Fixed 1.000%) (20/6/2019) (5,362) 795,000 Credit Default Swaps (Goldman Sachs) (Fund receives default protection on Fiat Finance North America Inc 5.625% 12/6/2017 and pays Fixed 5.000%) (20/6/2019) 2, ,000 Credit Default Swaps (Goldman Sachs) (Fund receives default protection on Fiat Finance North America Inc 5.625% 12/6/2017 and pays Fixed 5.000%) (20/12/2018) (33,420) 263,000 Credit Default Swaps (Goldman Sachs) (Fund receives default protection on Finmeccanica Finance SA/Old 5.750% 12/12/2018 and pays Fixed 5.000%) (20/6/2019) (754) 262,000 Credit Default Swaps (Goldman Sachs) (Fund receives default protection on Finmeccanica Finance SA/Old 5.750% 12/12/2018 and pays Fixed 5.000%) (20/6/2019) (547) 164 BlackRock Strategic Funds (BSF)

167 BlackRock Global Absolute Return Bond Fund continued Swaps as at 31 May ,000 Credit Default Swaps (Goldman Sachs) (Fund receives default protection on Finmeccanica Finance SA/Old 5.750% 12/12/2018 and pays Fixed 5.000%) (20/3/2018) (7,964) 630,000 Credit Default Swaps (Goldman Sachs) (Fund receives default protection on J Sainsbury Plc 4.250% 16/7/2014 and pays Fixed 1.000%) (20/6/2019) (3,783) 440,000 Credit Default Swaps (Goldman Sachs) (Fund receives default protection on Koninklijke DSM NV 4.000% 10/11/2015 and pays Fixed 1.000%) (20/6/2019) (940) 650,000 Credit Default Swaps (Goldman Sachs) (Fund receives default protection on Koninklijke DSM NV 4.000% 10/11/2015 and pays Fixed 1.000%) (20/6/2019) (742) 440,000 Credit Default Swaps (Goldman Sachs) (Fund receives default protection on Koninklijke Philips NV 5.750% 11/3/2018 and pays Fixed 1.000%) (20/6/2019) 1, ,000 Credit Default Swaps (Goldman Sachs) (Fund receives default protection on Koninklijke Philips NV 5.750% 11/3/2018 and pays Fixed 1.000%) (20/6/2019) ,655 Credit Default Swaps (Goldman Sachs) (Fund receives default protection on Lafarge SA 6.625% 29/11/2018 and pays Fixed 1.000%) (20/6/2019) (32,365) 50,000 Credit Default Swaps (Goldman Sachs) (Fund receives default protection on LANXESS Finance BV 7.750% 9/4/2014 and pays Fixed 1.000%) (20/3/2018) (1,170) 800,000 Credit Default Swaps (Goldman Sachs) (Fund receives default protection on Metsa OYJ 3.800% 27/6/2022 and pays Fixed 1.000%) (20/3/2019) (13,811) 287,000 Credit Default Swaps (Goldman Sachs) (Fund receives default protection on Michelin Luxembourg SCS 2.750% 20/6/2019 and pays Fixed 1.000%) (20/6/2019) ,000 Credit Default Swaps (Goldman Sachs) (Fund receives default protection on Orange SA 1.068% 4/7/2016 and pays Fixed 1.000%) (20/3/2019) (4,704) 20,000 Credit Default Swaps (Goldman Sachs) (Fund receives default protection on Pearson Plc 7.000% 27/10/2014 and pays Fixed 1.000%) (20/6/2018) (252) 290,000 Credit Default Swaps (Goldman Sachs) (Fund receives default protection on PostNL NV 1.068% 4/7/2016 and pays Fixed 1.000%) (20/6/2019) (4,111) 360,000 Credit Default Swaps (Goldman Sachs) (Fund receives default protection on PostNL NV 3.875% 1/6/2015 and pays Fixed 1.000%) (20/6/2019) (4,874) 790,000 Credit Default Swaps (Goldman Sachs) (Fund receives default protection on PostNL NV 3.875% 1/6/2015 and pays Fixed 1.000%) (20/6/2019) (9,539) 670,000 Credit Default Swaps (Goldman Sachs) (Fund receives default protection on PostNL NV 3.875% 1/6/2015 and pays Fixed 1.000%) (20/6/2019) (7,452) 355,000 Credit Default Swaps (Goldman Sachs) (Fund receives default protection on Rexel SA 5.125% 15/6/2020 and pays Fixed 5.000%) (20/6/2019) (5,416) 1,500,000 Credit Default Swaps (Goldman Sachs) (Fund receives default protection on Safeway Inc 1.068% 4/7/2016 and pays Fixed 1.000%) (20/3/2017) (6,431) 130,000 Credit Default Swaps (Goldman Sachs) (Fund receives default protection on Scandinavian Airlines 1.068% 4/7/2016 and pays Fixed 5.000%) (20/3/2019) 4, ,000 Credit Default Swaps (Goldman Sachs) (Fund receives default protection on Societe Air France SA 2.750% 1/4/2020 and pays Fixed 5.000%) (20/6/2019) (562) 340,000 Credit Default Swaps (Goldman Sachs) (Fund receives default protection on Societe Air France SA 2.750% 1/4/2020 and pays Fixed 5.000%) (20/6/2019) (558) 800,000 Credit Default Swaps (Goldman Sachs) (Fund receives default protection on St-Gobain Nederland BV 5.000% 25/4/2014 and pays Fixed 1.000%) (20/6/2018) (32,686) 284,000 Credit Default Swaps (Goldman Sachs) (Fund receives default protection on Stena AB 6.125% 1/2/2017 and pays Fixed 5.000%) (20/6/2019) (3,974) 40,000 Credit Default Swaps (Goldman Sachs) (Fund receives default protection on Stena AB 6.125% 1/2/2017 and pays Fixed 5.000%) (20/12/2017) (4,659) 220,000 Credit Default Swaps (Goldman Sachs) (Fund receives default protection on STMicroelectronics NV and pays Fixed 1.000%) (20/6/2019) (1,058) 1,330,000 Credit Default Swaps (Goldman Sachs) (Fund receives default protection on STMicroelectronics NV and pays Fixed 1.000%) (20/6/2019) (6,396) 290,000 Credit Default Swaps (Goldman Sachs) (Fund receives default protection on Swedish Match AB 3.125% 3/4/2019 and pays Fixed 1.000%) (20/6/2019) (1,347) 254,000 Credit Default Swaps (Goldman Sachs) (Fund receives default protection on Telecom Italia SpA 5.375% 29/1/2019 and pays Fixed 1.000%) (20/6/2019) (228) 50,000 Credit Default Swaps (Goldman Sachs) (Fund receives default protection on Telecom Italia SpA 5.375% 29/1/2019 and pays Fixed 1.000%) (20/3/2018) (2,542) 390,000 Credit Default Swaps (Goldman Sachs) (Fund receives default protection on Tesco Plc 6.000% 14/12/2029 and pays Fixed 1.000%) (20/3/2019) (1,579) 1,429,899 Credit Default Swaps (Goldman Sachs) (Fund receives default protection on ThyssenKrupp AG 4.375% 18/3/2015 and pays Fixed 1.000%) (20/6/2019) (33,504) 1,500,000 Credit Default Swaps (Goldman Sachs) (Fund receives default protection on Time Warner Cable Inc 1.068% 4/7/2016 and pays Fixed 1.000%) (20/3/2019) (17,491) The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 165

168 BlackRock Global Absolute Return Bond Fund continued Swaps as at 31 May ,000 Credit Default Swaps (Goldman Sachs) (Fund protection on J Sainsbury Plc 4.250% 16/7/2014) (20/3/2019) ,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on Anglo American Capital Plc 5.875% 17/4/2015) (20/6/2019) 1, ,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on Anheuser- Busch InBev NV 8.625% 30/1/2017) (20/6/2019) ,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on BP Plc 4.200% 15/6/2018) (20/6/2019) ,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on Continental AG 1.068% 4/7/2016) (20/3/2019) 1, ,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on Gas Natural Capital Markets SA 4.500% 27/1/2020) (20/6/2019) 1, ,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on GKN Holdings Plc 6.750% 28/10/2019) (20/6/2019) 1, ,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on Glencore Finance Europe SA 6.500% 27/2/2019) (20/6/2019) 10, ,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on Koninklijke KPN NV 8.375% 1/10/2030) (20/6/2019) 1, ,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on Koninklijke KPN NV 8.375% 1/10/2030) (20/6/2019) 2,756 10,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on Metsa OYJ 3.800% 27/6/2022) (20/6/2019) ,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on Renault SA 1.068% 4/7/2016) (20/3/2019) 3,548 26,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on Renault SA 1.068% 4/7/2016) (20/3/2019) ,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on Rentokil Initial Plc 1.068% 4/7/2016) (20/3/2019) 2, ,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on Rolls-Royce Plc 7.375% 14/6/2016) (20/12/2018) 1,374 2,400,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on Time Warner Cable Inc 1.068% 4/7/2016) (20/3/2017) 5,880 1,495,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on Valeo SA 4.875% 11/5/2018) (20/6/2019) 4, ,500 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on Alcatel- Lucent 8.500% 15/1/2016) (20/6/2019) 13, ,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on Altice Finco SA 9.000% 15/6/2023) (20/3/2019) 12, ,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on Altice Finco SA 9.000% 15/6/2023) (20/6/2019) 4, ,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on Altice Finco SA 9.000% 15/6/2023) (20/6/2019) 4, ,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on Astaldi SpA 7.125% 1/12/2020) (20/6/2019) 4, ,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on Brisa Concessao Rodoviaria SA 1.068% 4/7/2016) (20/3/2019) 8, ,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on Brisa Concessao Rodoviaria SA 1.068% 4/7/2016) (20/3/2019) 7,030 70,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on Brisa Concessao Rodoviaria SA 1.068% 4/7/2016) (20/3/2019) 3,836 20,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on British Airways Plc 8.750% 23/8/2016) (20/3/2018) 2, ,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on Cable & Wireless International Finance BV 8.625% 25/3/2019) (20/6/2019) 1, ,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on Dixons Retail Plc 8.750% 3/8/2015) (20/6/2019) 4,514 60,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on Eileme 2 AB 11.75% 31/1/2020) (20/12/2018) 4,442 30,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on Eileme 2 AB % (31/1/2020)) (20/12/2017) 7, BlackRock Strategic Funds (BSF)

169 BlackRock Global Absolute Return Bond Fund continued Swaps as at 31 May ,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on Eileme 2 AB % (31/1/2020)) (20/12/2017) 4,539 70,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on Imperial Tobacco Finance Plc 6.250% 4/12/2018) (20/9/2018) ,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on Infineon Technologies Holding BV 7.500% 26/5/2014) (20/9/2018) 1, ,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on Infineon Technologies Holding) (20/3/2019) (1,393) 130,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on ISS Global A/S 4.500% 8/12/2014) (20/12/2018) 7, ,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on Louis Dreyfus Commodities BV 4.000% 4/12/2020) (20/6/2019) 2, ,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on Melia Hotels International SA 1.068% 4/7/2016) (20/3/2019) 13, ,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on Melia Hotels International SA 1.068% 4/7/2016) (20/3/2019) 10, ,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on Melia Hotels International SA 5.000% 18/12/2014) (20/6/2019) 13,856 20,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on Melia Hotels International SA 5.000% 18/12/2014) (20/3/2018) 3,237 50,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on Melia Hotels International SA 5.000% 18/12/2014) (20/6/2018) 7, ,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on Metsa Board OYJ 4.000% 13/3/2019) (20/6/2019) 1, ,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on Metsa Board OYJ 4.000% 13/3/2019) (20/6/2019) ,638 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on New Look Bondco I Plc 8.750% 14/5/2018) (20/6/2019) 2, ,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on New Look Bondco I Plc 8.750% 14/5/2018) (20/6/2019) ,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on Nokia OYJ 1.068% 4/7/2016) (20/12/2018) (612) 140,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on Nokia OYJ 6.750% 4/2/2019) (20/12/2018) 3,311 70,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on NXP BV / NXP Funding LLC 8.625% (15/10/2015)) (20/3/2018) 4, ,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on OTE Plc 4.625% 20/5/2016) (20/6/2019) (40) 144,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on OTE Plc 4.625% 20/5/2016) (20/6/2019) (1,048) 20,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on Scandinavian Airlines 9.65% 16/6/2014) (20/12/2018) 61 90,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on Scandinavian Airlines 9.650% 16/6/2014) (20/12/2018) 1, ,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on Schaeffler Finance BV 1.068% 4/7/2016) (20/3/2019) 1, ,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on Schaeffler Finance BV 1.068% 4/7/2016) (20/3/2019) 1,575 20,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on Schaeffler Finance BV 7.750% 15/2/2017) (20/12/2017) 1, ,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on Schaeffler Finance BV 7.750% 15/2/2017) (20/12/2018) 3, ,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on TUI AG 2.75% 24/3/2016) (20/12/2018) 4,282 80,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on TVN Finance Corp III AB 7.375% 15/12/2020) (20/6/2019) 8, ,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on TVN Finance Corp III AB 7.375% 15/12/2020) (20/6/2019) 7, ,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on UCB SA 3.750% 27/3/2020) (20/6/2019) 11,862 60,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on UCB SA 3.750% 27/3/2020) (20/6/2019) 660 The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 167

170 BlackRock Global Absolute Return Bond Fund continued Swaps as at 31 May ,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on UPC Holding BV 8.375% 15/8/2020) (20/6/2019) ,000 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on UPC Holding BV 8.375% 15/8/2020) (20/6/2019) ,200 Credit Default Swaps (Goldman Sachs) (Fund protection where necessary on UPM- Kymmene OYJ 5.625% 1/12/2014) (20/6/2019) 1, ,000 Credit Default Swaps (HSBC Bank Plc ) (Fund protection where necessary on Gas Natural Capital Markets SA 4.500% 27/1/2020) (20/6/2019) 1,013 1,925,000 Credit Default Swaps (HSBC Bank Plc) (Fund receives default protection on Banco Bilbao Vizcaya Argentaria SA 4.375% 20/10/2019 and pays Fixed 3.000%) (20/3/2019) (48,169) 770,000 Credit Default Swaps (HSBC Bank Plc) (Fund receives default protection on BBVA Senior Finance SAU 3.750% 17/1/2018 and pays Fixed 3.000%) (20/3/2019) (19,854) 1,350,000 Credit Default Swaps (HSBC Bank Plc) (Fund receives default protection on BBVA Senior Finance SAU 3.750% 17/1/2018 and pays Fixed 3.000%) (20/3/2019) (35,509) 485,000 Credit Default Swaps (HSBC Bank Plc) (Fund protection on British Telecommunications Plc /12/2028) (20/6/2019) ,000 Credit Default Swaps (HSBC Bank Plc) (Fund receives Fixed 3.000% and provides default protection on Banco Santander SA 5.780% 17/2/2028) (20/3/2019) 20,634 1,925,000 Credit Default Swaps (HSBC Bank Plc) (Fund receives Fixed 3.000% and provides default protection on Banco Santander SA 5.780% 17/2/2028) (20/3/2019) 51,584 1,350,000 Credit Default Swaps (HSBC Bank Plc) (Fund receives Fixed 3.000% and provides default protection on Banco Santander SA 5.780% 17/2/2028) (20/3/2019) 36, ,000 Credit Default Swaps (HSBC) (Fund receives default protection on Fortum OYJ 5.000% 19/11/2013 and pays Fixed 1.000%) (20/9/2017) (931) 188,709 Credit Default Swaps (HSBC) (Fund receives default protection on GDF Suez 5.125% 19/2/2018 and pays Fixed 1.000%) (20/12/2017) (4,376) 100,000 Credit Default Swaps (HSBC) (Fund receives default protection on Telecom Italia SpA 5.375% 29/1/2019 and pays Fixed 1.000%) (20/12/2017) (8,833) 50,000 Credit Default Swaps (JP Morgan Chase Bank) (Fund receives default protection on LANXESS Finance BV 7.750% 9/4/2014 and pays Fixed 1.000%) (20/12/2017) (1,475) 120,000 Credit Default Swaps (JP Morgan Chase Bank) (Fund receives default protection on LANXESS Finance BV 7.750% 9/4/2014 and pays Fixed 1.000%) (20/3/2018) (2,918) 110,000 Credit Default Swaps (JP Morgan Chase Bank) (Fund receives default protection on Michelin Luxembourg SCS 2.75% 20/6/2019 and pays Fixed 1.000%) (20/12/2018) (1,562) 100,000 Credit Default Swaps (JP Morgan Chase Bank) (Fund receives default protection on Telecom Italia SpA 5.375% 29/1/2019 and pays Fixed 1.000%) (20/12/2017) (6,771) 40,000 Credit Default Swaps (JP Morgan Chase Bank) (Fund receives Fixed 5.000% and provides default protection where necessary on NXP BV / NXP Funding LLC 2.961% 15/10/2013) (20/3/2018) 3,271 50,000 Credit Default Swaps (JP Morgan Chase Bank) (Fund receives Fixed 5.000% and provides default protection where necessary on NXP BV / NXP Funding LLC 2.961% 15/10/2013) (20/3/2018) 3,989 10,000 Credit Default Swaps (JP Morgan Chase Bank) (Fund receives Fixed 5.000% and provides default protection where necessary on Schaeffler Finance BV 7.750% 15/2/2017) (20/12/2017) ,700 Credit Default Swaps (JP Morgan) (Fund receives default protection on BASF SE 4.500% 29/6/2016 and pays Fixed 1.000%) (20/9/2017) (1,770) 530,000 Credit Default Swaps (JP Morgan) (Fund receives default protection on Experian Finance Plc 4.750% 23/11/2018 and pays Fixed 1.000%) (20/6/2019) (163) 600,000 Credit Default Swaps (JP Morgan) (Fund receives default protection on Fortum OYJ 5.000% 19/11/2013 and pays Fixed 1.000%) (20/9/2017) (5,948) 200,000 Credit Default Swaps (JP Morgan) (Fund receives default protection on Koninklijke KPN NV 7.500% 4/2/2019 and pays Fixed 1.000%) (20/6/2019) (391) 270,000 Credit Default Swaps (JP Morgan) (Fund receives default protection on Metro AG 1.068% 4/7/2016 and pays Fixed 1.000%) (20/3/2019) (1,392) 260,000 Credit Default Swaps (JP Morgan) (Fund receives default protection on Metro AG 1.068% 4/7/2016 and pays Fixed 1.000%) (20/6/2019) (2,738) 170,000 Credit Default Swaps (JP Morgan) (Fund receives default protection on Metro AG 7.625% 5/3/2015 and pays Fixed 1.000%) (20/6/2019) (2,361) 510,000 Credit Default Swaps (JP Morgan) (Fund receives default protection on Metro AG 7.625% 5/3/2015 and pays Fixed 1.000%) (20/6/2019) (6,965) 220,000 Credit Default Swaps (JP Morgan) (Fund receives default protection on Metsa OYJ 3.800% 27/6/2022 and pays Fixed 1.000%) (20/12/2018) (8,743) 270,000 Credit Default Swaps (JP Morgan) (Fund receives default protection on Pearson Plc 7.000% 27/10/2014 and pays Fixed 1.000%) (20/6/2019) (962) 200,000 Credit Default Swaps (JP Morgan) (Fund receives default protection on Pearson Plc 7.000% 27/10/2014 and pays Fixed 1.000%) (20/6/2017) (173) 300,000 Credit Default Swaps (JP Morgan) (Fund receives default protection on Pernod Ricard SA 4.875% 18/3/2016 and pays Fixed 1.000%) (20/9/2018) (8,267) 280,000 Credit Default Swaps (JP Morgan) (Fund receives default protection on PostNL NV 1.068% 4/7/2016 and pays Fixed 1.000%) (20/6/2019) (3,901) 168 BlackRock Strategic Funds (BSF)

171 BlackRock Global Absolute Return Bond Fund continued Swaps as at 31 May ,000 Credit Default Swaps (JP Morgan) (Fund receives default protection on PostNL NV 3.875% 1/6/2015 and pays Fixed 1.000%) (20/6/2018) (4,540) 500,000 Credit Default Swaps (JP Morgan) (Fund receives default protection on RWE AG 5.750% 14/2/2033 and pays Fixed 1.000%) (20/6/2018) (9,533) 600,000 Credit Default Swaps (JP Morgan) (Fund receives default protection on St-Gobain Nederland BV 5.000% 25/4/2014 and pays Fixed 1.000%) (20/6/2018) (26,211) 6,400,000 Credit Default Swaps (JP Morgan) (Fund receives default protection on Standard Chartered Plc 5.750% 30/4/2014 and pays Fixed 1.000%) (20/3/2019) (131,338) 330,000 Credit Default Swaps (JP Morgan) (Fund receives Fixed 1.000% and provides default protection where necessary on BP Plc 4.200% 15/6/2018) (20/6/2019) 693 4,150,000 Credit Default Swaps (JP Morgan) (Fund receives Fixed 1.000% and provides default protection where necessary on British Sky Broadcasting Group Plc 6.000% 21/5/2027) (20/6/2019) (2,651) 290,000 Credit Default Swaps (JP Morgan) (Fund receives Fixed 1.000% and provides default protection where necessary on Enel SpA 5.250% 20/6/2017) (20/6/2019) ,000 Credit Default Swaps (JP Morgan) (Fund receives Fixed 1.000% and provides default protection where necessary on Enel SpA 5.250% 20/6/2017) (20/6/2019) (1,783) 270,000 Credit Default Swaps (JP Morgan) (Fund receives Fixed 1.000% and provides default protection where necessary on Enel SpA 5.250% 20/6/2017) (20/6/2019) (908) 6,400,000 Credit Default Swaps (JP Morgan) (Fund receives Fixed 1.000% and provides default protection where necessary on HSBC Holdings Plc 1.068% 4/7/2016) (20/3/2019) 99, ,000 Credit Default Swaps (JP Morgan) (Fund receives Fixed 1.000% and provides default protection where necessary on Imperial Tobacco Finance Plc 6.250% 4/12/2018) (20/9/2017) 6, ,000 Credit Default Swaps (JP Morgan) (Fund receives Fixed 1.000% and provides default protection where necessary on Next Plc 5.375% 26/10/2021) (20/12/2018) 1, ,000 Credit Default Swaps (JP Morgan) (Fund receives Fixed 1.000% and provides default protection where necessary on Qantas Airways Ltd 6.050% 15/4/2016) (20/6/2019) ,000 Credit Default Swaps (JP Morgan) (Fund receives Fixed 5.000% and provides default protection where necessary on Nokia OYJ 6.750% 4/2/2019) (20/6/2019) 1,046 60,000 Credit Default Swaps (JP Morgan) (Fund receives Fixed 5.000% and provides default protection where necessary on Nokia OYJ 6.750% 4/2/2019) (20/9/2017) 15, ,000 Credit Default Swaps (JP Morgan) (Fund protection where necessary on TUI AG 5.125% 10/12/2012) (20/9/2017) 60, ,000 Credit Default Swaps (Morgan Stanley) (Fund receives default protection on Pearson Plc 1.068% 4/7/2016 and pays Fixed 1.000%) (20/3/2019) ,000 Credit Default Swaps (Morgan Stanley) (Fund receives default protection on Pearson Plc 1.068% 4/7/2016 and pays Fixed 1.000%) (20/3/2019) (403) 269,000 Credit Default Swaps (Morgan Stanley) (Fund receives default protection on Portugal Telecom International Finance BV 1.068% 4/7/2016 and pays Fixed 5.000%) (20/6/2019) (10,362) 300,000 Credit Default Swaps (Morgan Stanley) (Fund receives default protection on SABMiller Plc 1.068% 4/7/2016 and pays Fixed 1.000%) (20/3/2019) (988) 600,000 Credit Default Swaps (Morgan Stanley) (Fund receives default protection on Tate & Lyle International Finance Plc 6.750% 25/11/2019 and pays Fixed 1.000%) (20/6/2017) (3,101) 270,000 Credit Default Swaps (Morgan Stanley) (Fund receives default protection on Wolters Kluwer NV 1.068% 4/7/2016 and pays Fixed 1.000%) (20/3/2019) (787) 485,000 Credit Default Swaps (Morgan Stanley) (Fund protection on Vodafone Group Plc 5.000% 4/6/2018) (20/6/2019) ,000 Credit Default Swaps (Morgan Stanley) (Fund protection where necessary on BP Plc 4.200% 15/6/2018) (20/6/2019) ,000 Credit Default Swaps (Morgan Stanley) (Fund protection where necessary on Centrica Plc 7.000% 19/9/2018) (20/6/2017) 2,671 54,000 Credit Default Swaps (Morgan Stanley) (Fund protection where necessary on Abengoa SA 8.500% 31/3/2016) (20/6/2019) ,000 Credit Default Swaps (Morgan Stanley) (Fund protection where necessary on Brisa Concessao Rodoviaria SA 4.500% 5/12/2016) (20/6/2019) ,000 Credit Default Swaps (Morgan Stanley) (Fund protection where necessary on Louis Dreyfus Commodities BV 3.875% 30/7/2018) (20/6/2019) 5,626 90,000 Credit Default Swaps (Morgan Stanley) (Fund protection where necessary on Louis Dreyfus Commodities BV 4.000% 4/12/2020) (20/6/2019) 3, ,000 Credit Default Swaps (Morgan Stanley) (Fund protection where necessary on Louis Dreyfus Commodities BV 4.000% 4/12/2020) (20/6/2019) 3,728 80,000 Credit Default Swaps (Morgan Stanley) (Fund protection where necessary on OTE Plc 1.068% 4/7/2016) (20/3/2019) 2,263 The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 169

172 BlackRock Global Absolute Return Bond Fund continued Swaps as at 31 May ,000 Credit Default Swaps (Morgan Stanley) (Fund protection where necessary on OTE Plc 1.068% 4/7/2016) (20/3/2019) 7, ,000 Credit Default Swaps (Morgan Stanley) (Fund protection where necessary on TVN Finance Corp III AB 7.375% 15/12/2020) (20/6/2019) 8,411 78,800 Credit Default Swaps (UBS) (Fund receives default protection on BASF SE 4.500% (29/6/2016) and pays Fixed 1.000%) (20/9/2017) (1,841) 150,000 Credit Default Swaps (UBS) (Fund receives default protection on Clariant Finance Luxembourg SA 4.375% 5/4/2013 and pays Fixed 1.000%) (20/9/2017) (15,269) 20,000 Credit Default Swaps (UBS) (Fund receives default protection on Telecom Italia SpA 5.375% 29/1/2019 and pays Fixed 1.000%) (20/3/2018) (1,083) 1,420,000 Interest Rate Swap (Barclays Bank) (Fund receives Fixed 2.465% and pays Floating 6 Month IBOR) (8/7/2033) 69, ,000 Interest Rate Swap (Barclays Bank) (Fund receives Floating 6 Month IBOR and pays Fixed 2.605%) (8/7/2063) (77,556) 365,000 Interest Rate Swap (Barclays Bank) (Fund receives Floating 3 Month LIBOR and pays Fixed 0.986%) (4/9/2017) ,000 Interest Rate Swap (Barclays Bank) (Fund receives Floating 3 Month LIBOR and pays Fixed 2.600%) (19/5/2024) (297) 600,000 Interest Rate Swap (Barclays Bank) (Fund receives Floating 3 Month LIBOR and pays Fixed 2.700%) (12/5/2024) (4,917) 2,000,000 Interest Rate Swap (Barclays Bank) (Fund receives Floating 3 Month LIBOR and pays Fixed 3.652%) (27/2/2044) (99,887) 200,000 Interest Rate Swap (BNP Paribas) (Fund receives Floating 3 Month LIBOR and pays Fixed 2.800%) (25/4/2024) (3,025) 2,590,000 Interest Rate Swap (Citibank) (Fund receives Fixed 2.495% and pays Floating 6 Month IBOR) (7/4/2044) 137,365 1,935,000 Interest Rate Swap (Citibank) (Fund receives Floating 6 Month IBOR and pays Fixed 2.536%) (7/4/2064) (148,177) GBP 245,000 Interest Rate Swap (Citigroup Global Markets) (Fund receives Floating GBP 6 Month LIBOR and pays Fixed 3.365%) (9/1/2034) (11,414) 1,100,000 Interest Rate Swap (Deutsche Bank) (Fund receives Fixed 1.650% and pays Floating 3 Month LIBOR) (27/5/2019) 1, ,000 Interest Rate Swap (Deutsche Bank) (Fund receives Fixed 2.285% and pays Floating 3 Month LIBOR) (22/4/2018) 2, ,000 Interest Rate Swap (Deutsche Bank) (Fund receives Fixed 2.290% and pays Floating 3 Month LIBOR) (22/4/2018) 2,826 2,700,000 Interest Rate Swap (Deutsche Bank) (Fund receives Fixed 2.340% and pays Floating 3 Month LIBOR) (24/3/2018) 15,428 2,100,000 Interest Rate Swap (Deutsche Bank) (Fund receives Fixed 3.190% and pays Floating 3 Month LIBOR) (22/4/2025) 35,156 CAD 3,030,000 Interest Rate Swap (Deutsche Bank) (Fund receives Floating CAD 3 Month LIBOR and pays Fixed 2.338%) (24/3/2018) (11,730) CAD 815,000 Interest Rate Swap (Deutsche Bank) (Fund receives Floating CAD 6 Month LIBOR and pays Fixed 2.238%) (18/4/2018) (1,801) CAD 810,000 Interest Rate Swap (Deutsche Bank) (Fund receives Floating CAD 6 Month LIBOR and pays Fixed 2.240%) (18/4/2018) (1,816) THB 260,000,000 Interest Rate Swap (Deutsche Bank) (Fund receives Floating THB 6 Month LIBOR and pays Fixed 2.060%) (29/5/2016) (3,036) 850,000 Interest Rate Swap (Deutsche Bank) (Fund receives Floating 3 Month LIBOR and pays Fixed 0.560%) (25/6/2015) (1,985) 2,100,000 Interest Rate Swap (Deutsche Bank) (Fund receives Floating 3 Month LIBOR and pays Fixed 0.941%) (10/1/2017) (7,535) 27,500,000 Interest Rate Swap (Deutsche Bank) (Fund receives Floating 3 Month LIBOR and pays Fixed 1.585%) (30/11/2018) (11,331) 1,230,000 Interest Rate Swap (Deutsche Bank) (Fund receives Floating 3 Month LIBOR and pays Fixed 2.140%) (15/2/2021) (3,436) 7,240,000 Interest Rate Swap (Deutsche Bank) (Fund receives Floating 3 Month LIBOR and pays Fixed 2.380%) (15/2/2021) (100,514) 600,000 Interest Rate Swap (Deutsche Bank) (Fund receives Floating 3 Month LIBOR and pays Fixed 2.582%) (19/5/2024) 108 1,000,000 Interest Rate Swap (Deutsche Bank) (Fund receives Floating 3 Month LIBOR and pays Fixed 3.654%) (22/4/2045) (28,446) 1,000,000 Interest Rate Swap (Deutsche Bank) (Fund receives Floating 3 Month LIBOR and pays Floating 3 Month SIFMA) (19/3/2034) 9,290 SGD 1,000,000 Interest Rate Swap (HSBC Bank Plc ) (Fund receives Floating SGD 6 Month SIBOR and pays Fixed 1.815%) (1/6/2019) (7,281) 2,950,000 Interest Rate Swap (Royal Bank of Scotland Plc) (Fund receives Floating 6 Month IBOR and pays Fixed 1.626%) (15/2/2023) (59,557) 55,850,000 Interest Rate Swap (Royal Bank of Scotland Plc) (Fund receives Floating 3 Month LIBOR and pays Fixed 2.214%) (15/5/2021) (32,525) ( underlying exposure 501,006,964 ) (684,284) Note: The total market value of 417,771 is included in the Statement of Net Assets (see note 2(d)). 170 BlackRock Strategic Funds (BSF)

173 BlackRock Global Absolute Return Bond Fund continued Open Forward Foreign Exchange Transactions as at 31 May 2014 Purchases Sales Date CAD 182,419 GBP 100,000 2/6/ GBP 100,000 CAD 182,869 2/6/2014 (825) AUD 350,000 CAD 354,038 3/6/2014 (826) CAD 355,059 AUD 350,000 3/6/2014 1,517 CAD 182,602 GBP 100,000 3/6/ CHF 85,488 70,000 3/6/ ,000 CHF 85,222 3/6/ ,000 MXN 1,798,470 3/6/2014 (2,651) 100,000 SEK 902,900 3/6/ GBP 100,000 CAD 182,930 3/6/2014 (866) MXN 1,819, ,000 3/6/2014 3,860 NOK 900,000 SEK 995,850 3/6/ SEK 902, ,000 3/6/2014 (709) SEK 1,001,951 NOK 900,000 3/6/2014 (155) 25,000 CHF 21,946 3/6/ ,000 ZAR 1,564,085 3/6/2014 1,263 ZAR 1,559, ,000 3/6/2014 (1,564) AUD 160,000 NZD 172,419 4/6/2014 1,805 CAD 139,298 NZD 150,000 4/6/ CAD 170,065 NZD 180,000 4/6/2014 3,030 CAD 327, ,000 4/6/2014 1, ,000 CHF 121,744 4/6/ ,000 GBP 98,124 4/6/2014 (632) 120,000 MXN 2,134,716 4/6/2014 (1,833) GBP 219, ,000 4/6/2014 (246) GBP 97, ,000 4/6/ MXN 2,128, ,000 4/6/2014 1,462 NZD 173,790 AUD 160,000 4/6/2014 (951) NZD 180,000 CAD 168,357 4/6/2014 (1,874) 300,000 CAD 326,985 4/6/2014 (1,040) AUD 160,000 NZD 172,422 5/6/2014 1,806 4,965,823 6,818,000 5/6/2014 (39,888) 534, ,000 5/6/2014 (1,009) 49,575,750 68,766,000 5/6/2014 (911,601) 629, ,000 5/6/2014 (3,797) 701, ,000 5/6/2014 (717) 85, ,000 5/6/2014 (89) 48,830 68,000 5/6/2014 (1,095) JPY 15,250, ,000 5/6/2014 (142) NZD 173,088 AUD 160,000 5/6/2014 (1,391) 3,806,000 2,772,942 5/6/ , ,000 JPY 15,248,940 5/6/ ,501 JPY 51,212,120 9/6/2014 (2,845) 3,212,919 4,443,365 9/6/2014 (49,390) 4,851,561 6,685,227 9/6/2014 (56,718) 2,307,917 3,191,475 9/6/2014 (35,257) 646, ,354 9/6/2014 (6,733) 1,714,060 2,370,175 9/6/2014 (26,118) 4,057,086 5,594,081 9/6/2014 (50,076) 1,107,662 1,527,399 9/6/2014 (13,751) HKD 2,141, ,260 9/6/2014 2,498 JPY 92,013, ,192 9/6/2014 6,362 SGD 1,456,497 1,165,021 9/6/2014 (2,668) SGD 45,158 35,650 9/6/ SGD 1,792,660 1,416,169 9/6/2014 9, , ,599 9/6/2014 5,008 7,526,911 5,435,160 9/6/ ,082 3,768,029 2,732,255 9/6/ ,223 2,960,193 2,146,643 9/6/ , ,291 HKD 1,980,000 9/6/2014 (77) 277,379 HKD 2,152,000 9/6/2014 (149) 353,461 JPY 36,145,054 9/6/2014 (1,171) 696,454 JPY 71,667,239 9/6/2014 (5,534) 105,664 JPY 10,750,000 9/6/ ,459 SGD 470,691 9/6/2014 (5,039) Open Forward Foreign Exchange Transactions as at 31 May 2014 Purchases Sales Date 748,165 SGD 951,596 9/6/2014 (7,798) 726,310 SGD 919,981 9/6/2014 (5,336) AUD 788, ,093 10/6/ CNY 4,265, ,888 10/6/2014 (8,405) CNY 2,405, ,486 10/6/2014 (2,594) CNY 472,834 76,363 10/6/2014 (366) 357, ,507 10/6/2014 (6,254) 713, ,990 10/6/2014 (4,631) IDR 23,388,740,715 2,032,639 10/6/2014 (24,022) IDR 6,727,975, ,013 10/6/2014 (5,667) IDR 66,752,608 5,669 10/6/ INR 45,473, ,358 10/6/ ,135 INR 995,548 15,782 10/6/ KRW 818,076, ,260 10/6/2014 8,181 MYR 2,379, ,901 10/6/ ,049 MYR 2,385, ,319 10/6/2014 6,470 MYR 2,582, ,090 10/6/2014 7,541 PHP 33,169, ,446 10/6/2014 9,885 PHP 69,052,275 1,556,634 10/6/ ,556 THB 46,487,882 1,428,758 10/6/2014 (9,678) THB 1,156,320 35,590 10/6/2014 (279) TWD 20,968, ,193 10/6/2014 3,749 TWD 16,913, ,127 10/6/2014 (1,518) 1,506,071 AUD 1,618,948 10/6/2014 1,758 37,411 CNY 231,089 10/6/ ,376 CNY 3,030,229 10/6/2014 3,069 1,547,173 IDR 17,800,227,605 10/6/ ,439 1,080,406 IDR 12,440,879,676 10/6/ , ,819 INR 23,637,555 10/6/2014 (8,627) 188,575 INR 11,442,871 10/6/2014 (3,565) 75,044 INR 4,478,602 10/6/2014 (486) 98,945 INR 6,000,000 10/6/2014 (1,820) 74,869 INR 4,492,125 10/6/2014 (783) 155,205 INR 9,254,874 10/6/2014 (910) 708,991 KRW 765,639,320 10/6/2014 (30,134) 1,318,254 KRW 1,418,177,299 10/6/2014 (52,141) 2,275,049 KRW 2,446,473,499 10/6/2014 (89,249) 36,308 KRW 38,457,253 10/6/2014 (1,003) 334,776 MYR 1,090,199 10/6/2014 (3,183) 804,082 MYR 2,606,191 10/6/2014 (4,836) 186,178 MYR 599,810 10/6/2014 (291) 735,093 PHP 33,169,409 10/6/2014 (16,752) 1,503,045 PHP 65,773,247 10/6/ ,067 PHP 3,284,920 10/6/ ,136 THB 1,180,026 10/6/ ,410,610 THB 46,019,370 10/6/2014 6, ,733 TWD 19,822,769 10/6/2014 (3,941) 597,860 TWD 18,058,364 10/6/2014 (3,228) AUD 3,991,228 3,627,872 11/6/ ,942 AUD 2,298,763 2,134,438 11/6/ AUD 1,194,000 1,086,138 11/6/ ,718 AUD 417, ,850 11/6/2014 6,925 AUD 1,312,000 1,201,807 11/6/ ,255 AUD 750, ,104 11/6/2014 (406) AUD 987, ,175 11/6/ ,635 AUD 347, ,304 11/6/2014 2,178 AUD 630, ,691 11/6/2014 (1,900) AUD 107,000 99,068 11/6/ AUD 205, ,511 11/6/2014 (88) CAD 1,404,000 1,264,601 11/6/ ,582 CAD 107,000 95,448 11/6/2014 2,326 CAD 541, ,573 11/6/2014 7,371 CAD 139, ,127 11/6/2014 3,658 CAD 342, ,079 11/6/2014 1,561 CHF 146, ,000 11/6/2014 (75) The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 171

174 BlackRock Global Absolute Return Bond Fund continued Open Forward Foreign Exchange Transactions as at 31 May 2014 Purchases Sales Date 120,000 CHF 146,072 11/6/ ,000 CHF 109,557 11/6/ ,340,268 GBP 2,755,000 11/6/2014 (46,580) 153,423 GBP 125,000 11/6/2014 (245) 608,075 GBP 500,000 11/6/2014 (6,598) 662, ,416 11/6/2014 (12,769) 2,043,000 2,805,052 11/6/2014 (16,473) 2,329,000 3,210,056 11/6/2014 (27,828) 104, ,006 11/6/2014 (2,463) 297, ,714 11/6/2014 (3,813) 2,514,000 3,455,196 11/6/2014 (22,810) 1,587,900 2,185,000 11/6/2014 (16,330) 946,000 1,311,985 11/6/2014 (17,262) 651, ,773 11/6/2014 (5,944) 2,432,000 3,338,075 11/6/2014 (18,820) 607, ,412 11/6/2014 (4,158) GBP 216, ,057 11/6/2014 1,919 GBP 2,637,000 4,430,518 11/6/2014 (11,106) GBP 909,000 1,509,445 11/6/2014 9,239 GBP 1,838,000 3,092,405 11/6/2014 (10,910) GBP 489, ,269 11/6/2014 (2,561) GBP 789,000 1,315,493 11/6/2014 4,117 GBP 354, ,434 11/6/2014 4,628 GBP 295, ,419 11/6/2014 (1,815) JPY 155,050,000 1,520,895 11/6/2014 1,609 JPY 11,100, ,672 11/6/ JPY 41,600, ,245 11/6/2014 2,496 JPY 194,740,000 1,909,125 11/6/2014 2,821 JPY 81,300, ,947 11/6/2014 1,967 JPY 163,350,000 1,600,296 11/6/2014 3,174 JPY 41,250, ,721 11/6/2014 2,559 JPY 140,150,000 1,363,145 11/6/2014 9,967 JPY 87,040, ,478 11/6/2014 (343) JPY 88,850, ,155 11/6/2014 (268) NOK 2,347, ,302 11/6/ NOK 7,746,000 1,294,303 11/6/2014 (111) NOK 980, ,142 11/6/ NOK 3,437, ,691 11/6/2014 (1,071) NOK 3,196, ,706 11/6/2014 (1,277) NOK 339,000 56,928 11/6/2014 (213) NOK 4,578, ,921 11/6/2014 1,426 NOK 2,487, ,144 11/6/ NOK 1,132, ,052 11/6/ NZD 318, ,591 11/6/2014 (813) NZD 2,022,000 1,729,870 11/6/2014 (12,013) NZD 2,177,000 1,864,979 11/6/2014 (14,772) NZD 482, ,225 11/6/2014 (5,700) NZD 1,326,000 1,108,645 11/6/ ,050 NZD 432, ,714 11/6/2014 (457) SEK 11,324,000 1,743,522 11/6/2014 (33,913) SEK 5,153, ,435 11/6/2014 (12,527) SEK 13,718,000 2,125,472 11/6/2014 (50,887) SEK 1,624, ,043 11/6/2014 (2,661) SEK 3,219, ,692 11/6/2014 (6,757) SEK 5,424, ,601 11/6/2014 (10,726) SEK 741, ,539 11/6/2014 (4,017) SEK 185,000 28,920 11/6/2014 (874) 739,319 AUD 810,000 11/6/2014 (9,512) 233,255 AUD 260,000 11/6/2014 (6,032) 1,436,234 AUD 1,556,000 11/6/2014 (6,517) 698,717 AUD 757,000 11/6/2014 (3,183) 544,916 AUD 600,000 11/6/2014 (9,049) 796,696 AUD 864,000 11/6/2014 (4,207) 3,636,303 AUD 4,044,000 11/6/2014 (87,736) 729,886 AUD 781,000 11/6/2014 3,337 Open Forward Foreign Exchange Transactions as at 31 May 2014 Purchases Sales Date 288,809 AUD 314,000 11/6/2014 (2,066) 235,128 AUD 256,000 11/6/2014 (1,929) 57,106 AUD 62,000 11/6/2014 (349) 1,946,027 CAD 2,142,000 11/6/2014 (20,666) 1,702,654 CAD 1,873,000 11/6/2014 (17,324) 128,528 CAD 140,000 11/6/2014 (370) 43,473 CAD 47,596 11/6/2014 (289) 27,080 CAD 30,000 11/6/2014 (418) 74,744 CAD 82,000 11/6/2014 (610) 2,278,736 1,655,000 11/6/ ,051 2,683,365 1,940,000 11/6/ ,130 1,823,489 1,314,621 11/6/ , , ,000 11/6/2014 4, , ,000 11/6/2014 7,895 2,127,263 1,548,000 11/6/ ,840 1,425,620 1,032,753 11/6/ , , ,000 11/6/2014 4, , ,000 11/6/2014 4, , ,000 11/6/2014 3,062 58,874 43,000 11/6/ , ,000 11/6/2014 1,429 1,360,980 GBP 814,000 11/6/2014 (1,454) 82,331 GBP 49,000 11/6/ ,028 GBP 519,000 11/6/2014 (4,394) 3,852,589 GBP 2,300,000 11/6/2014 1,080 1,032,875 GBP 612,000 11/6/2014 5, ,626 GBP 354,000 11/6/2014 2,121 1,834,934 GBP 1,091,000 11/6/2014 5, ,448 GBP 540,000 11/6/2014 6, ,036 GBP 189,000 11/6/2014 1,890 2,841,764 JPY 292,300,000 11/6/2014 (21,699) 1,151,755 JPY 117,600,000 11/6/2014 (2,535) 486,688 JPY 49,700,000 11/6/2014 (1,120) 963,244 JPY 98,400,000 11/6/2014 (2,465) 849,909 JPY 86,950,000 11/6/2014 (3,097) 3,432,544 JPY 351,360,000 11/6/2014 (13,900) 271,381 JPY 27,800,000 11/6/2014 (1,251) 1,900,559 JPY 193,595,000 11/6/2014 (853) 776,894 JPY 80,600,000 11/6/2014 (10,906) 308,139 JPY 31,400,000 11/6/2014 (227) 87,978 JPY 9,000,000 11/6/2014 (316) 1,055,133 NOK 6,267,000 11/6/2014 5,935 2,942,966 NOK 17,630,000 11/6/2014 (1,865) 27,494 NOK 165,000 11/6/2014 (54) 851,856 NOK 5,052,000 11/6/2014 5,727 54,998 NOK 333,000 11/6/2014 (468) 307,613 NOK 1,826,000 11/6/2014 1, ,434 NOK 3,194,810 11/6/2014 4, ,763 NZD 367,000 11/6/2014 (180) 642,405 NZD 755,000 11/6/2014 1,904 2,846,221 NZD 3,348,000 11/6/2014 6,621 1,555,789 NZD 1,814,000 11/6/ , ,235 NZD 532,000 11/6/2014 1, ,240 NZD 280,000 11/6/2014 1,438 55,087 NZD 64,000 11/6/ ,641 NZD 340,000 11/6/2014 2, ,604 NZD 197,000 11/6/2014 2, ,572 NZD 403,000 11/6/2014 6, ,073 SEK 3,190,000 11/6/2014 6, ,478 SEK 2,959,000 11/6/ ,983 1,477,706 SEK 9,568,000 11/6/ , ,929 SEK 6,129,000 11/6/ , ,602 SEK 3,365,000 11/6/2014 8, ,203 SEK 1,440,000 11/6/2014 3, ,785 SEK 760,000 11/6/2014 2, BlackRock Strategic Funds (BSF)

175 BlackRock Global Absolute Return Bond Fund continued Open Forward Foreign Exchange Transactions as at 31 May 2014 Purchases Sales Date 281,953 SEK 2,540,841 13/6/2014 2,348 SEK 855,657,938 94,883,384 13/6/2014 (723,053) 5,051 3,672 13/6/ , ,337 27/6/2014 (13,944) 29,942 BRL 67,620 27/6/ ,920 BRL 1,940,100 27/6/2014 (625) 46,082 33,090 27/6/ AUD 150,000 NZD 161,792 8/7/2014 1,678 CAD 163, ,000 8/7/ NZD 162,351 AUD 150,000 8/7/2014 (1,331) 166,039 AUD 180,000 8/7/2014 (603) 150,000 CAD 162,867 8/7/2014 (6) AUD 788, ,389 9/7/2014 9,382 CAD 137,925 NZD 150,000 9/7/ ,540,647 2,123,926 9/7/2014 (18,815) 120, ,278 9/7/ SGD 462, ,894 9/7/2014 (1,721) 727,581 AUD 792,642 9/7/2014 (5,248) 137,883 AUD 150,000 9/7/2014 (850) 500, ,534 9/7/2014 1, , ,000 9/7/2014 (271) 354,167 SGD 448,575 9/7/2014 (2,583) 1,516,279 SGD 1,908,348 9/7/2014 (3,965) 1,521,402 AUD 2,250,000 16/7/2014 (9,172) 4,743,499 GBP 3,840,000 16/7/ ,881 3,750,878 GBP 3,060,000 16/7/2014 (10,067) 1,824,620 GBP 1,480,000 16/7/2014 5,600 39,147,817 GBP 32,390,000 16/7/2014 (661,667) 1,959,522 GBP 1,610,000 16/7/2014 (19,276) 3,983,750 5,485,000 16/7/2014 (43,501) 5,989,576 8,280,000 16/7/2014 (89,848) 1,271,520 1,750,000 16/7/2014 (13,382) 21,899 30,000 16/7/2014 (128) 40,145 55,000 16/7/2014 (238) 1,297,512 1,770,000 16/7/2014 (2,075) 103,059 ZAR 1,480,000 16/7/ ,783 ZAR 6,555,000 16/7/2014 4, ,923 ZAR 2,225,000 16/7/2014 1,101 GBP 200, ,019 16/7/2014 2,794 GBP 1,570,000 1,919,136 16/7/ ,499 GBP 310, ,299 16/7/2014 3,712 GBP 3,790,000 4,645,479 16/7/ ,686 GBP 1,610,000 1,973,329 16/7/2014 5,469 GBP 430, ,233 16/7/2014 (2,734) 4,300,000 3,116,930 16/7/ ,258 1,270, ,851 16/7/2014 2,621 1,270, ,922 16/7/2014 2, , ,364 16/7/ , ,372 16/7/2014 2, ,311 AUD 560,000 23/7/2014 (4,444) 376,702 GBP 310,000 23/7/2014 (4,285) 306,059 GBP 252,000 23/7/2014 (3,647) 1,653,236 GBP 1,355,000 23/7/2014 (12,047) 6,521,484 GBP 5,390,000 23/7/2014 (102,780) 200, ,367 23/7/2014 (1,447) 40,000 55,067 23/7/2014 (432) 100, ,948 23/7/ ,082,000 2,854,503 22/8/2014 (13,770) GBP 2,085,000 3,507,001 22/8/2014 (13,080) 2,448,225 AUD 2,647,000 22/8/2014 1,517 2,859,030 CHF 2,545,000 22/8/ ,853 1,880,279 JPY 190,700,000 22/8/2014 4, , ,969 10/9/2014 (1,298) 800, ,372 10/9/2014 3,969 INR 11,220, ,548 11/9/2014 (3,426) Open Forward Foreign Exchange Transactions as at 31 May 2014 Purchases Sales Date KRW 808,131, ,529 11/9/2014 2, ,684 IDR 4,204,034,353 11/9/2014 9, ,693 INR 20,107,290 11/9/2014 1,329 Net unrealised depreciation ( underlying exposure 556,184,714) (2,916,717) Note: The net unrealised depreciation attributed to these transactions is included in the Statements of Net Assets (see note 2(d)). Bank of America N.A., Barclays Bank Plc, BNP Paribas S.A., Citibank N.A. London, Credit Suisse International, Deutsche Bank AG London, Goldman Sachs International, HSBC Bank Plc, JP Morgan Chase Bank N.A., Morgan Stanley and Co. International Plc, Royal Bank of Canada (UK), Royal Bank of Scotland Plc, Société Générale, Standard Chartered Bank, State Street Bank and Trust Company, State Street Bank London, UBS AG London, Westpac Banking Corp. are the counterparties to these Open Forward Foreign Exchange Transactions. Sector Breakdown as at 31 May 2014 % of Net Assets* Financial Government Asset Backed Securities Mortgage Securities Funds 5.50 Consumer, Cyclical 4.89 Utilities 2.52 Consumer, Non-cyclical 2.32 Communications 1.83 Energy 1.46 Industrial 0.70 Technology 0.35 Basic Materials 0.29 Diversified 0.23 Other Net Assets * Based on the market value of the Portfolio of Investments except for Contract For Difference, which are based on the commitment (where applicable). The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 173

176 BlackRock Global Absolute Return Bond Fund continued Swaptions as at 31 May 2014 Issuer Market 2,000,000 Fund purchases a call option (expiring on 14/1/2015) to enter into an Interest Rate Swap (Deutsche Bank AG). If exercised Fund receives 1.665% Fixed semi-annual from 16/7/2015; and pays Libor 3-month- BBA quarterly from 16/4/2015 Call Option strike price 1.67 expiring on 14/1/2015 3,623 18,399 3,400,000 Fund purchases a call option (expiring on 14/11/2014) to enter into an Interest Rate Swap (Deutsche Bank AG). If exercised Fund receives 1.7% Fixed semiannual from 18/5/2015; and pays Libor 3-month-BBA quarterly from 18/2/2015 Call Option strike price 1.70 expiring on 14/11/ , ,000 Fund purchases a call option (expiring on 15/5/2017) to enter into an Interest Rate Swap (Goldman Sachs International). If exercised Fund receives 3.25% Fixed semi-annual from 17/11/2017; and pays Libor 3-month-BBA quarterly from 17/8/2017 Call Option strike price 3.25 expiring on 15/5/ ,680 10,000,000 Fund purchases a call option (expiring on 20/5/2015) to enter into an Interest Rate Swap (Barclays Bank Plc). If exercised Fund receives 0.737% Fixed semi-annual from 22/11/2015; and pays Libor 3-month- BBA quarterly from 22/8/2015 Call Option strike price 0.74 expiring on 20/5/2015 (1,016) 13,582 1,600,000 Fund purchases a call option (expiring on 22/5/2017) to enter into an Interest Rate Swap (Deutsche Bank AG). If exercised Fund receives 3.3% Fixed semiannual from 24/11/2017; and pays Libor 3-month-BBA quarterly from 24/8/2017 Call Option strike price 3.30 expiring on 22/5/2017 6,029 70,624 7,000,000 Fund purchases a call option (expiring on 9/1/2015) to enter into an Interest Rate Swap (BNP Paribas SA). If exercised Fund receives 1.795% Fixed semiannual from 13/7/2015; and pays Libor 3-month-BBA quarterly from 13/4/2015 Call Option strike price 1.80 expiring on 9/1/ ,913 80,749 Swaptions as at 31 May 2014 Issuer Market 7,000,000 Fund purchases a call option (expiring on 9/1/2015) to enter into an Interest Rate Swap (JP Morgan Chase Bank). If exercised Fund receives % Fixed semi-annual from 13/7/2015; and pays Libor 3-month- BBA quarterly from 13/4/2015 Call Option strike price 1.80 expiring on 9/1/ ,231 81,067 2,000,000 Fund purchases a put option (expiring on 14/1/2015) to enter into an Interest Rate Swap (Deutsche Bank AG). If exercised Fund receives Libor 3-month-BBA quarterly from 16/4/2015; and pays 1.665% Fixed semi-annual from 16/7/2015 Call Option strike price 1.67 expiring on 14/1/2015 (9,665) 5,110 3,400,000 Fund purchases a put option (expiring on 14/7/2014) to enter into an Interest Rate Swap (Deutsche Bank AG). If exercised Fund receives Libor 3-month-BBA quarterly from 16/10/2014; and pays 2.5% Fixed semi-annual from 16/1/2015 Call Option strike price 2.50 expiring on 14/7/2014 (1,554) ,000 Fund purchases a put option (expiring on 15/5/2017) to enter into an Interest Rate Swap (Goldman Sachs International). If exercised Fund receives Libor 3-month-BBA quarterly from 17/8/2017; and pays 4.25% Fixed semi-annual from 17/11/2017 Call Option strike price 4.25 expiring on 15/5/ ,085 3,700,000 Fund purchases a put option (expiring on 15/5/2017) to enter into an Interest Rate Swap (Goldman Sachs International). If exercised Fund receives Libor 3-month-BBA quarterly from 17/8/2017; and pays 4.5% Fixed semi-annual from 17/11/2017 Call Option strike price 4.50 expiring on 15/5/ ,016 4,950,000 Fund purchases a put option (expiring on 2/10/2014) to enter into an Interest Rate Swap (Bank of America). If exercised Fund receives Floating Libor 3-month-BBA quarterly from 6/1/2015; and pays 0.6% Fixed semi-annual from 6/4/2015) Call Option strike price 0.60 expiring on 2/10/2014 (5,840) BlackRock Strategic Funds (BSF)

177 BlackRock Global Absolute Return Bond Fund continued Swaptions as at 31 May 2014 Issuer Market 333,000,000 Fund purchases a put option (expiring on 21/5/2019) to enter into an Interest Rate Swap (Citibank NA). If exercised Fund receives JPY Libor 6-month-BBA semi-annual from 23/11/2019; and pays 1.25% Fixed semiannual from 23/11/2019 Call Option strike price JPY 1.25 expiring on 21/5/2019 (3,263) 43,599 1,600,000 Fund purchases a put option (expiring on 22/5/2017) to enter into an Interest Rate Swap (Deutsche Bank AG). If exercised Fund receives Libor 3-month-BBA quarterly from 24/8/2017; and pays 4.3% Fixed semi-annual from 24/11/2017 Call Option strike price 4.30 expiring on 22/5/ ,461 3,000,000 Fund purchases a put option (expiring on 22/5/2018) to enter into an Interest Rate Swap (Deutsche Bank AG). If exercised Fund receives Floating Libor 3-month-BBA quarterly from 24/8/2018; and pays 4.5% Fixed semi-annual from 24/11/2018) Call Option strike price 4.50 expiring on 22/5/2018 (16,106) 76, ,000,000 Fund purchases a put option (expiring on 28/5/2019) to enter into an Interest Rate Swap (Citibank NA). If exercised Fund receives JPY Libor 6-month-BBA semi-annual from 30/11/2019; and pays 1.25% Fixed semiannual from 30/11/2019 Call Option strike price JPY 1.25 expiring on 28/5/2019 (2,101) 43,878 7,000,000 Fund purchases a put option (expiring on 9/1/2015) to enter into an Interest Rate Swap (BNP Paribas SA). If exercised Fund receives Libor 3-month-BBA quarterly from 13/4/2015; and pays 1.795% Fixed semi-annual from 13/7/2015 Call Option strike price 1.80 expiring on 9/1/2015 (42,227) 13,609 7,000,000 Fund purchases a put option (expiring on 9/1/2015) to enter into an Interest Rate Swap (JP Morgan Chase Bank). If exercised Fund receives Libor 3-month-BBA quarterly from 13/4/2015; and pays % Fixed semi-annual from 13/7/2015 Call Option strike price 1.80 expiring on 9/1/2015 (42,289) 13,547 Swaptions as at 31 May 2014 Issuer Market (3,700,000) Fund writes a call option (expiring on 10/2/2015) to enter into an Interest Rate Swap (Deutsche Bank AG). If exercised Fund receives Libor 3-month-BBA quarterly from 12/5/2015; and pays 2.8% Fixed semi-annual from 12/8/2015 Call Option strike price 2.80 expiring on 10/2/2015 (15,861) (52,502) (1,500,000) Fund writes a call option (expiring on 17/11/2014) to enter into an Interest Rate Swap (Deutsche Bank AG). If exercised Fund receives Libor 3-month-BBA quarterly from 19/2/2015; and pays 2.85% Fixed semi-annual from 19/5/2015 Call Option strike price 2.85 expiring on 17/11/2014 (10,243) (23,652) (600,000) Fund writes a call option (expiring on 17/12/2014) to enter into an Interest Rate Swap (Deutsche Bank AG). If exercised Fund receives Libor 3-month-BBA quarterly from 19/3/2015; and pays 2.85% Fixed semi-annual from 19/6/2015 Call Option strike price 2.85 expiring on 17/12/2014 (3,915) (9,484) (1,000,000) Fund writes a call option (expiring on 17/3/2016) to enter into an Interest Rate Swap (Deutsche Bank AG). If exercised Fund receives Libor 3-month-BBA quarterly from 21/6/2016; and pays 3.15% Fixed semi-annual from 21/9/2016 Call Option strike price 3.15 expiring on 17/3/2016 (7,823) (24,515) (3,900,000) Fund writes a call option (expiring on 22/5/2015) to enter into an Interest Rate Swap (JP Morgan Chase Bank). If exercised Fund receives Libor 3-month-BBA quarterly from 27/8/2015; and pays 2.5% Fixed semi-annual from 27/11/2015 Call Option strike price 2.50 expiring on 22/5/2015 (4,146) (29,862) (2,000,000) Fund writes a call option (expiring on 26/2/2016) to enter into an Interest Rate Swap (Deutsche Bank AG). If exercised Fund receives Libor 3-month-BBA quarterly from 1/6/2016; and pays 3.1% Fixed semi-annual from 1/9/2016 Call Option strike price 3.10 expiring on 26/2/2016 (16,883) (46,025) (2,200,000) Fund writes a call option (expiring on 3/5/2016) to enter into an Interest Rate Swap (Deutsche Bank AG). If exercised Fund receives Libor 3-month-BBA quarterly from 5/8/2016; and pays 3.5% Fixed semi-annual from 5/11/2016 Call Option strike price 3.50 expiring on 3/5/2016 (17,450) (80,334) The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 175

178 BlackRock Global Absolute Return Bond Fund continued Swaptions as at 31 May 2014 Issuer Market (4,000,000) Fund writes a call option (expiring on 30/1/2015) to enter into an Interest Rate Swap (Deutsche Bank AG). If exercised Fund receives Libor 3-month-BBA quarterly from 3/5/2015; and pays % Fixed semi-annual from 3/8/2015 Call Option strike price 3.28 expiring on 30/1/2015 (46,864) (136,253) (1,000,000) Fund writes a call option (expiring on 7/5/2015) to enter into an Interest Rate Swap (Deutsche Bank AG). If exercised Fund receives Libor 3-month-BBA quarterly from 11/8/2015; and pays 3.09% Fixed semi-annual from 11/11/2015 Call Option strike price 3.09 expiring on 7/5/2015 4,436 (14,584) (800,000) Fund writes a call option (expiring on 9/5/2016) to enter into an Interest Rate Swap (Deutsche Bank AG). If exercised Fund receives Libor 3-month-BBA quarterly from 11/8/2016; and pays % Fixed semi-annual from 11/11/2016 Call Option strike price 3.45 expiring on 9/5/2016 (4,700) (27,595) (3,700,000) Fund writes a put option (expiring on 10/2/2015) to enter into an Interest Rate Swap (Deutsche Bank AG). If exercised Fund receives 3.8% Fixed semi-annual from 12/8/2015; and pays Libor 3-month-BBA quarterly from 12/5/2015 Call Option strike price 3.80 expiring on 10/2/ ,256 (7,335) (700,000) Fund writes a put option (expiring on 15/4/2015) to enter into an Interest Rate Swap (Barclays Bank Plc). If exercised Fund receives 3.65% Fixed semiannual from 17/10/2015; and pays Libor 3-month-BBA quarterly from 17/7/2015 Call Option strike price 3.65 expiring on 15/4/2015 2,168 (3,511) (700,000) Fund writes a put option (expiring on 15/4/2015) to enter into an Interest Rate Swap (Citibank NA). If exercised Fund receives 3.65% Fixed semi-annual from 17/10/2015; and pays Libor 3-month-BBA quarterly from 17/7/2015 Call Option strike price 3.65 expiring on 15/4/2015 2,143 (3,511) (600,000) Fund writes a put option (expiring on 15/4/2015) to enter into an Interest Rate Swap (Deutsche Bank AG). If exercised Fund receives 3.65% Fixed semiannual from 17/10/2015; and pays Libor 3-month-BBA quarterly from 17/7/2015 Call Option strike price 3.65 expiring on 15/4/2015 1,858 (3,010) Swaptions as at 31 May 2014 Issuer Market (3,000,000) Fund writes a put option (expiring on 15/5/2017) to enter into an Interest Rate Swap (Goldman Sachs International). If exercised Fund receives 4% Fixed semiannual from 17/11/2017; and pays Libor 3-month-BBA quarterly from 17/8/2017 Call Option strike price 4.00 expiring on 15/5/ (79,964) (3,000,000) Fund writes a put option (expiring on 17/11/2014) to enter into an Interest Rate Swap (Deutsche Bank AG). If exercised Fund receives 3.7% Fixed semi-annual from 15/5/2015; and pays Floating Libor 3-month- BBA quarterly from 19/2/2015 Call Option strike price 3.70 expiring on 17/11/ ,890 (2,454) (600,000) Fund writes a put option (expiring on 17/12/2014) to enter into an Interest Rate Swap (Deutsche Bank AG). If exercised Fund receives 3.85% Fixed semiannual from 19/6/2015; and pays Libor 3-month-BBA quarterly from 19/3/2015 Call Option strike price 3.85 expiring on 17/12/2014 7,272 (503) (600,000) Fund writes a put option (expiring on 18/4/2016) to enter into an Interest Rate Swap (Barclays Bank Plc). If exercised Fund receives 4.05% Fixed semiannual from 20/10/2016; and pays Libor 3-month-BBA quarterly from 20/7/2016 Call Option strike price 4.05 expiring on 18/4/2016 2,216 (7,962) (700,000) Fund writes a put option (expiring on 18/4/2016) to enter into an Interest Rate Swap (Deutsche Bank AG). If exercised Fund receives 4.05% Fixed semiannual from 20/10/2016; and pays Libor 3-month-BBA quarterly from 20/7/2016 Call Option strike price 4.05 expiring on 18/4/2016 2,566 (9,289) (700,000) Fund writes a put option (expiring on 18/4/2016) to enter into an Interest Rate Swap (Goldman Sachs International). If exercised Fund receives 4.05% Fixed semiannual from 20/10/2016; and pays Libor 3-month-BBA quarterly from 20/7/2016 Call Option strike price 4.05 expiring on 18/4/2016 2,585 (9,289) (333,000,000) Fund writes a put option (expiring on 21/5/2019) to enter into an Interest Rate Swap (Citibank NA). If exercised Fund receives 1.75% Fixed semi-annual from 23/11/2019; and pays JPY Libor 6-month-BBA semi-annual from 23/11/2019 Call Option strike price JPY 1.75 expiring on 21/5/2019 1,863 (31,061) 176 BlackRock Strategic Funds (BSF)

179 BlackRock Global Absolute Return Bond Fund continued Swaptions as at 31 May 2014 Issuer Market (3,900,000) Fund writes a put option (expiring on 22/5/2015) to enter into an Interest Rate Swap (JP Morgan Chase Bank). If exercised Fund receives 3.5% Fixed semi-annual from 27/11/2015; and pays Libor 3-month-BBA quarterly from 27/8/2015 Call Option strike price 3.50 expiring on 22/5/2015 3,017 (33,461) (6,000,000) Fund writes a put option (expiring on 22/5/2018) to enter into an Interest Rate Swap (Deutsche Bank AG). If exercised Fund receives 6% Fixed semi-annual from 24/11/2018; and pays Floating Libor 3-month- BBA quarterly from 24/8/2018 Call Option strike price 6.00 expiring on 22/5/ ,355 (51,483) (2,000,000) Fund writes a put option (expiring on 24/11/2014) to enter into an Interest Rate Swap (Barclays Bank Plc). If exercised Fund receives 3.15% Fixed semiannual from 26/5/2015; and pays Libor 3-month-BBA quarterly from 26/2/2015 Call Option strike price 3.15 expiring on 24/11/2014 4,203 (10,287) (600,000) Fund writes a put option (expiring on 25/4/2016) to enter into an Interest Rate Swap (BNP Paribas SA). If exercised Fund receives 4.1% Fixed semi-annual from 27/10/2016; and pays Libor 3-month-BBA quarterly from 27/7/2016 Call Option strike price 4.10 expiring on 25/4/2016 2,179 (7,672) (2,000,000) Fund writes a put option (expiring on 26/2/2016) to enter into an Interest Rate Swap (Deutsche Bank AG). If exercised Fund receives 4.15% Fixed semiannual from 1/9/2016; and pays Libor 3-month-BBA quarterly from 1/6/2016 Call Option strike price 4.15 expiring on 26/2/ ,307 (20,228) (333,000,000) Fund writes a put option (expiring on 28/5/2019) to enter into an Interest Rate Swap (Citibank NA). If exercised Fund receives 1.75% Fixed semi-annual from 30/11/2019; and pays JPY Libor 6-month-BBA semi-annual from 30/11/2019 Call Option strike price JPY 1.75 expiring on 28/5/ (31,265) (1,000,000) Fund writes a put option (expiring on 29/2/2016) to enter into an Interest Rate Swap (Citibank NA). If exercised Fund receives 4.15% Fixed semi-annual from 2/9/2016; and pays Libor 3-month-BBA quarterly from 2/6/2016 Call Option strike price 4.15 expiring on 29/2/2016 7,573 (10,183) Swaptions as at 31 May 2014 Issuer Market (2,200,000) Fund writes a put option (expiring on 3/5/2016) to enter into an Interest Rate Swap (Deutsche Bank AG). If exercised Fund receives 3.5% Fixed semi-annual from 5/11/2016; and pays Libor 3-month-BBA quarterly from 5/8/2016 Call Option strike price 3.50 expiring on 3/5/2016 8,872 (54,013) (4,000,000) Fund writes a put option (expiring on 30/1/2015) to enter into an Interest Rate Swap (Deutsche Bank AG). If exercised Fund receives % Fixed semiannual from 3/8/2015; and pays Libor 3-month-BBA quarterly from 3/5/2015 Call Option strike price 3.28 expiring on 30/1/ ,150 (26,240) (400,000) Fund writes a put option (expiring on 6/4/2015) to enter into an Interest Rate Swap (Credit Suisse International). If exercised Fund receives % Fixed semiannual from 8/10/2015; and pays Libor 3-month-BBA quarterly from 8/7/2015 Call Option strike price 3.35 expiring on 6/4/2015 4,472 (3,473) (1,000,000) Fund writes a put option (expiring on 7/5/2015) to enter into an Interest Rate Swap (Deutsche Bank AG). If exercised Fund receives 3.09% Fixed semiannual from 11/11/2015; and pays Libor 3-month-BBA quarterly from 11/8/2015 Call Option strike price 3.09 expiring on 7/5/2015 3,051 (15,969) (1,000,000) Fund writes a put option (expiring on 7/5/2015) to enter into an Interest Rate Swap (JP Morgan Chase Bank). If exercised Fund receives 3.1% Fixed semi-annual from 11/11/2015; and pays Libor 3-month-BBA quarterly from 11/8/2015 Call Option strike price 3.10 expiring on 7/5/2015 3,340 (15,716) (800,000) Fund writes a put option (expiring on 9/5/2016) to enter into an Interest Rate Swap (Deutsche Bank AG). If exercised Fund receives % Fixed semiannual from 11/11/2016; and pays Libor 3-month-BBA quarterly from 11/8/2016 Call Option strike price 3.45 expiring on 9/5/2016 1,982 (20,914) ( underlying exposure 36,571,208) 52,279 (264,588) Note: Swaptions are included in the Statement of Net Assets (see Note 2(d)). The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 177

180 BlackRock Global Absolute Return Bond Fund continued Written Call Options as at 31 May 2014 Number of contracts subject to Call Issuer Underlying exposure Market (54) US Treasury 10 Year Note Call Option strike price expiring on 20/6/2014 2,520, (19,823) (207) US Treasury 10 Year Note Call Option strike price expiring on 25/7/2014 9,658,824 11,777 (125,856) Total Written Call Options 12,179,151 12,484 (145,679) Note: Written Call Options are included in the Statement of Net Assets (see Note 2(d)). Where no counterparty is shown the Written Call Option is exchange traded. Purchased Call Options as at 31 May 2014 Number of contracts subject to Call Issuer Underlying exposure Market 34 3 Month IBOR Mid-Curve Call Option strike price expiring on 16/3/ ,189, ,199,399 CNY/ Call Option (Citibank NA) strike price CNY 6.02 expiring on 21/7/ ,742 (670) 60 Total Purchased Call Options 10,437,989 (457) 273 Note: Purchased Call Options are included in the Statement of Net Assets (see Note 2(d)). Where no counterparty is shown the Purchased Call Option is exchange traded. Open Exchange Traded Futures Contracts as at 31 May 2014 Number of Contracts Contract/ Expiration date Underlying exposure 66 Australian 10 Year Bond June ,382, ,038 (42) Australian 10 Year Bond June ,425,354 (75,306) (22) Canadian 10 Year Bond September ,416,147 (12,061) (37) Euro-OAT June ,549,557 (12,560) (140) German Euro BOBL June ,197,440 (120,570) 30 German Euro Bund June ,091,890 8,160 (87) German Euro Bund June ,966,481 (233,275) (3) German Euro Schatz June ,029 (735) (17) Korea 10 Year Bond June ,397,985 (27,649) (44) Short Euro BTP June ,834,104 (40,780) (160) UK Long Gilt Bond September ,935,011 (159,772) (32) UK Long Gilt Bond September ,787,003 (13,548) 36 US Long Bond September ,778,036 8,052 (251) US Treasury 10 Year Note September ,775,924 (21,582) 490 US Treasury 10 Year Note September ,606,386 35,154 (48) US Treasury 2 Year Note September ,207, US Treasury 5 Year Note September ,987,206 (26,359) (296) US Treasury 5 Year Note September ,608,280 13,281 5 US Ultra Bond September ,915 2,499 Total 185,707,424 (549,702) Purchased Put Options as at 31 May 2014 Number of contracts subject to Put Issuer Underlying exposure Market 2,599,699 CNY/ Put Option (Citibank NA) strike price CNY 6.10 expiring on 21/7/ (113,498) 4, Eurodollar Futures Put Option strike price expiring on 16/3/ ,037,613 (381) 4, Eurodollar Mid 1 Year CRV Put Option strike price expiring on 13/6/2014 1,157,246 (3,783) Eurodollar Mid 2 Year CRV Put Option strike price expiring on 12/9/2014 1,817,596 (4,502) 1, Eurodollar Mid 2 Year CRV Put Option strike price expiring on 12/9/2014 3,808,378 (7,040) 3,120 1,000,000 /CNY Put Option (JP Morgan Chase Bank) strike price 6.11 expiring on 22/12/ ,165 (1,739) 741 1,100,000 /INR Put Option (BNP Paribas SA) strike price expiring on 10/6/ ,522 15,283 24,816 Total Purchased Put Options 19,692,536 (115,660) 39,116 Note: Purchased Put Options are included in the Statement of Net Assets (see Note 2(d)). Where no counterparty is shown the Purchased Put Option is exchange traded. Written Put Options as at 31 May 2014 Number of contracts subject to Put Issuer Underlying exposure Market (2,599,699) CNY/ Put Option (Citibank NA) strike price CNY 6.10 expiring on 21/7/ (2,496) (4,358) (54) US Treasury 10 Year Note Put Option strike price expiring on 20/6/2014 2,455,760 (2,806) (29,735) (207) US Treasury 10 Year Note Put Option strike price expiring on 25/7/2014 9,415,498 (6,990) (144,853) Total Written Put Options 11,871,274 (12,292) (178,946) Note: Written Put Options are included in the Statement of Net Assets (see Note 2(d)). Where no counterparty is shown the Written Put Option is exchange traded. Note: The net unrealised depreciation of attributed to these transactions is included in the Statement of Net Assets (see Note 2(d)). 178 BlackRock Strategic Funds (BSF)

181 BlackRock Latin American Opportunities Fund Portfolio of Investments as at 31 May 2014 Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market Holding Market % of Net Assets Holding Market % of Net Assets COMMON / PREFERRED STOCKS (SHARES) Brazil 305,000 Arezzo Industria e Comercio SA 3,875, ,000 Autometal SA 2,838, ,000 BR Properties SA 4,189, ,000 Cia de Saneamento de Minas Gerais-COPASA 2,998, ,000 Cosan Ltd 'A' 2,300, ,000 Cosan SA Industria e Comercio 1,929, ,000 Cyrela Brazil Realty SA Empreendimentos e Participacoes 2,422, ,000 Even Construtora e Incorporadora SA 2,258, ,000 Hypermarcas SA 2,930, ,000 Iguatemi Empresa de Shopping Centers SA 4,437, ,000 Klabin SA (Unit) 1,530, ,000 Kroton Educacional SA 5,704, ,000 Localiza Rent a Car SA 3,070, ,000 Lojas Renner SA 2,928, ,000 Magazine Luiza SA 2,812, ,089,000 Marcopolo SA (Pref) 2,107, ,000 Mills Estruturas e Servicos de Engenharia SA 4,155, ,000,000 Minerva SA/Brazil 4,369, ,000 Raia Drogasil SA 2,541, ,000 Ser Educacional SA 4,168, ,568, Colombia 170,000 Banco Davivienda SA (Pref) 2,631, ,000 Grupo Nutresa SA 6,277, ,909, Mexico 1,025,000 Alfa SAB de CV 'A' 2,873, ,380,000 Alsea SAB de CV 4,701, ,283,000 Bolsa Mexicana de Valores SAB de CV 2,673, ,597,000 Concentradora Fibra Hotelera Mexicana SA de CV (Reit) 2,716, ,622,000 Corp Inmobiliaria Vesta SAB de CV 3,333, ,880,000 Credito Real SAB de CV 6,058, ,798 Grupo Aeroportuario del Pacifico SAB de CV 'B' 908, ,452,000 Grupo Sanborns SAB de CV 2,718, ,000 Infraestructura Energetica Nova SAB de CV 2,738, ,000 Kimberly-Clark de Mexico SAB de CV 'A' 2,560, ,840,000 TF Administradora Industrial S de RL de CV (Reit) 3,727, ,010, Peru 32,000 Credicorp Ltd 5,000, ,000 Grana y Montero SAA 2,780, ,780, Spain 500,000 Cemex Latam Holdings SA 4,584, ,584, Total Common / Preferred Stocks (Shares) 119,852, BONDS Brazil BRL 31,197 Klabin SA (Step-up Coupon) 12.24% 8/1/ , BRL 490,000 Lupatech SA 6.50% 15/4/ , , Total Bonds 885, Total Transferable Securities and Money Market Instruments Admitted to an Official Stock Exchange Listing or Dealt in on Another Regulated Market 120,738, Other Transferable Securities and Money Market Instruments COMMON STOCKS (SHARES) & WARRANTS Brazil 802 Hypermarcas SA (Wts 31/12/2049)* ,703 Klabin SA 149, ,703 Klabin SA (Wts 15/6/2020)* , Total Common Stocks (Shares) & Warrants 149, BONDS Brazil BRL 802 Hypermarcas SA FRN 15/10/ , BRL 802 Hypermarcas SA 11.30% 15/10/ , , Total Bonds 731, Total Other Transferable Securities and Money Market Instruments 881, Securities portfolio at market value 121,620, Other Net Assets 4,287, Total Net Assets () 125,907, * Investments which are less than 0.5 have been rounded down to zero. The notes on pages 181 to 191 form an integral part of these financial statements. Annual Report and Audited Accounts 179

182 BlackRock Latin American Opportunities Fund continued Sector Breakdown as at 31 May 2014 % of Net Assets* Consumer, Non-cyclical Financial Consumer, Cyclical Utilities 4.56 Diversified 4.49 Industrial 4.36 Basic Materials 2.03 Energy 0.01 Other Net Assets * Based on the market value of the Portfolio of Investments except for Contract For Difference, which are based on the commitment (where applicable). 180 BlackRock Strategic Funds (BSF)

183 Notes to the Financial Statements 1. Organisation BlackRock Strategic Funds (the Company ) is a public limited company (société anonyme) established under the laws of the Grand Duchy of Luxembourg as an open-ended variable capital investment company (société d investissement à capital variable). The Company has been authorised by the Commission de Surveillance du Secteur Financier (the CSSF ) as an undertaking for collective investment in transferable securities ( UCITS ) pursuant to the provisions of Part I of the law of 17 December 2010 relating to undertakings for collective investments, as amended and is regulated pursuant to such law. The Company is an umbrella structure comprising a number of different Funds, each having a separate portfolio of investments. The Company has appointed BlackRock (Luxembourg) S.A. as its Management Company. As at 31 May 2014, the Company offered shares in 18 Funds ( Funds ). Each Fund is a separate pool of assets and is represented by separate shares of each Fund which are divided into share classes as follows: A Class A Class distributing share CHF hedged A Class distributing share A Class distributing share hedged A Class non-distributing share AUD A Class non-distributing share CHF hedged A Class non-distributing share A Class non-distributing share hedged A Class non-distributing share SEK hedged A Class non-distributing share A Class non-distributing share hedged A Class UK reporting distributing fund share GBP A Class UK reporting distributing fund share GBP hedged A Class UK reporting non-distributing fund share GBP A Class UK reporting non-distributing fund share GBP hedged C Class C Class non-distributing share D Class D Class distributing share D Class non-distributing share CHF hedged D Class non-distributing share D Class non-distributing share hedged D Class non-distributing share D Class non-distributing share hedged D Class UK reporting distributing fund share GBP D Class UK reporting distributing fund share GBP hedged D Class UK reporting non-distributing fund share D Class UK reporting non-distributing fund share hedged 1 D Class UK reporting non-distributing fund share GBP D Class UK reporting non-distributing fund share GBP hedged E Class E Class non-distributing share E Class non-distributing share E Class non-distributing share hedged H Class H Class non-distributing share CHF hedged H Class non-distributing share H Class non-distributing share hedged H Class UK reporting non-distributing fund share GBP hedged I Class I Class non-distributing share 2 I Class non-distributing share 2 I Class non-distributing share hedged 2 I Class non-distributing share SEK hedged 2 I Class UK reporting distributing fund share GBP 2 I Class UK reporting distributing fund share GBP hedged 2 I Class UK reporting non-distributing fund share 1, 2 I Class UK reporting non-distributing fund share GBP hedged 2 I Class UK reporting non-distributing fund share hedged 1, 2 K Class K Class non-distributing share L Class L Class non-distributing share M Class M Class non-distributing share T Class T Class non-distributing share 2 U Class U Class non-distributing share U Class UK reporting non-distributing fund share GBP U Class UK reporting non-distributing fund share hedged 1 X Class X Class non-distributing share 2 X Class non-distributing share 2 1 class name changed, see Note 1, for further details. 2 available to institutional investors. J share Class has not yet been issued. The classes of shares have equivalent rights in the Company but carry different features and charging structures which are more fully described in the Company s Prospectus. Fund Launch and Liquidation Effective 12 June 2013, the BlackRock Emerging Markets Flexi Dynamic Bond Fund, denominated in was launched. Effective 17 July 2013, the BlackRock European Opportunities Absolute Return Fund, denominated in was liquidated. Effective 15 November 2013, the BlackRock Emerging Markets Allocation Fund, denominated in was launched. Effective 18 March 2014, the BlackRock Mining Opportunities Fund, denominated in was liquidated. Annual Report and Audited Accounts 181

184 Notes to the Financial Statements continued Significant events during the year ended 31 May 2014 A new Prospectus was issued on 28 May Effective 20 November 2013, Bruno Rovelli was appointed as a Director of the Board. Effective 25 November 2013, the following class name changes occurred: BlackRock Americas Diversified Equity Absolute Return Fund D Class non-distributing share hedged changed its name to BlackRock Americas Diversified Equity Absolute Return Fund D Class UK reporting non-distributing fund share hedged; BlackRock European Credit Strategies Fund I Class nondistributing share in changed its name to BlackRock European Credit Strategies Fund I Class UK reporting nondistributing fund share in ; BlackRock European Credit Strategies Fund I Class nondistributing share hedged changed its name to BlackRock European Credit Strategies Fund I Class UK reporting non-distributing fund share hedged; BlackRock European Credit Strategies Fund U Class non-distributing share hedged changed its name to BlackRock European Credit Strategies Fund U Class UK reporting non-distributing fund share hedged. Share Classes Launched Effective date Type Fund 12 June 2013 A Class non-distributing share BlackRock Emerging Markets Flexi Dynamic Bond Fund 19 June 2013 A Class non-distributing share BlackRock Emerging Markets Absolute Return Fund 26 June 2013 X Class non-distributing share BlackRock Emerging Markets Flexi Dynamic Bond Fund 3 July 2013 D Class non-distributing share BlackRock Emerging Markets Flexi Dynamic Bond Fund 3 July 2013 E Class non-distributing share BlackRock Emerging Markets Flexi Dynamic Bond Fund 17 July 2013 D Class non-distributing share hedged BlackRock Emerging Markets Flexi Dynamic Bond Fund 17 July 2013 E Class non-distributing share hedged BlackRock Emerging Markets Flexi Dynamic Bond Fund 11 September 2013 D Class UK reporting distributing fund share GBP hedged BlackRock Emerging Markets Absolute Return Fund 2 October 2013 A Class non-distributing share in hedged BlackRock Global Absolute Return Bond Fund 13 November 2013 X Class non-distributing share BlackRock Asia Extension Fund 15 November 2013 A Class non-distributing share BlackRock Emerging Markets Allocation Fund 15 November 2013 C Class non-distributing share BlackRock Emerging Markets Allocation Fund 15 November 2013 D Class non-distributing share BlackRock Emerging Markets Allocation Fund 15 November 2013 E Class non-distributing share BlackRock Emerging Markets Allocation Fund 15 November 2013 I Class non-distributing share BlackRock Emerging Markets Allocation Fund 15 November 2013 X Class non-distributing share BlackRock Emerging Markets Allocation Fund 27 November 2013 A Class non-distributing share hedged BlackRock Emerging Markets Absolute Return Fund 27 November 2013 D Class UK reporting distributing fund share GBP BlackRock Emerging Markets Flexi Dynamic Bond Fund 4 December 2013 A Class UK reporting distributing fund share GBP hedged BlackRock Emerging Markets Absolute Return Fund 19 February 2014 I Class UK reporting distributing fund share GBP BlackRock Emerging Markets Absolute Return Fund 19 February 2014 I Class non-distributing share BlackRock Emerging Markets Absolute Return Fund 19 February 2014 I Class non-distributing share BlackRock Emerging Markets Absolute Return Fund 5 March 2014 A Class distributing share BlackRock Fixed Income Strategies Fund 2 April 2014 A Class distributing share CHF hedged BlackRock Fixed Income Strategies Fund 2 April 2014 A Class distributing share hedged BlackRock Fixed Income Strategies Fund 2 April 2014 A Class non-distributing share CHF hedged BlackRock Fixed Income Strategies Fund 2 April 2014 A Class non-distributing share hedged BlackRock Fixed Income Strategies Fund 2 April 2014 I Class non-distributing share SEK hedged BlackRock European Credit Strategies Fund 9 April 2014 I Class non-distributing share BlackRock European Opportunities Extension Fund 23 April 2014 I Class UK reporting distributing fund share GBP hedged BlackRock Emerging Markets Absolute Return Fund 7 May 2014 E Class non-distributing share hedged BlackRock Emerging Markets Absolute Return Fund 28 May 2014 A Class non-distributing share hedged BlackRock Emerging Markets Flexi Dynamic Bond Fund 182 BlackRock Strategic Funds (BSF)

185 Notes to the Financial Statements continued Share Classes Closed Effective date Type Fund 12 June 2013 I Class non-distributing share BlackRock European Opportunities Absolute Return Fund 8 July 2013 D Class UK reporting non-distributing fund share GBP hedged BlackRock European Opportunities Absolute Return Fund 17 July 2013 A Class non-distributing share BlackRock European Opportunities Absolute Return Fund 17 July 2013 D Class non-distributing share BlackRock European Opportunities Absolute Return Fund 17 July 2013 E Class non-distributing share BlackRock European Opportunities Absolute Return Fund 18 March 2014 D Class UK reporting non-distributing fund share GBP BlackRock Mining Opportunities Fund 18 March 2014 D Class UK reporting non-distributing fund share BlackRock Mining Opportunities Fund 2. Summary of Significant Accounting Policies: The financial statements have been prepared in accordance with the legal and regulatory requirements relating to the preparation of the financial statements as prescribed by the Luxembourg authorities for Luxembourg investment companies and generally accepted accounting principles and include the following significant accounting policies: (a) Valuation of Investments and Other Assets liquid assets such as time deposits and money market instruments are valued at amortised cost basis; cash and prepaid expenses are valued at their nominal amount; assets which include, in particular, interest and dividends receivable, receivable for investments sold and receivable for Fund shares subscribed are valued at nominal value; The Company s investments and other assets are valued as follows: the value of all securities and other assets forming any particular Fund s portfolio is determined by last known prices upon close of the exchange on which those securities or assets are traded or admitted for trading. For securities traded on markets closing after the time of the valuation, last known prices as of this time or such other time may be used. If net transactions in Shares of the Company on any Dealing Day exceed the threshold set by the Board of Directors of the Company, then additional procedures apply (see Note 2(h)). The value of any securities or assets traded on any other regulated market is determined in the same way. Where such securities or other assets are quoted or dealt in on more than one stock exchange or regulated market the Board of Directors of the Company may in their discretion select one of such stock exchanges or regulated markets for such purposes; for non-quoted securities or securities not traded or dealt in on any stock exchange or other regulated market (including securities of closed-ended investment funds), as well as quoted or non quoted securities on such other markets for which no valuation price is available, or securities for which the quoted prices are, in the opinion of the Board of Directors of the Company, not representative of the fair market value, the value shall be determined prudently and in good faith by the Board of Directors of the Company on the basis of their expected disposal or acquisition price; liabilities which include, in particular, interest and dividends payable, income distribution payable, payable for investments purchased and payable for Fund shares redeemed are valued at nominal value. Funds that invest in fixed income transferable securities may purchase To Be Announced securities ( TBAs ). This refers to the common trading practice in the mortgage-backed securities market in which a security is to be bought from a mortgage pool for a fixed price at a future date. At the time of purchase the exact security is not known, but the main characteristics of it are specified. Although the price has been established at the time of purchase, the principal value has not been finalised. As a TBA is not settled at the time of purchase, this may lead to leveraged positions within a Fund. Purchasing a TBA involves a risk of loss if the value of the security to be purchased declines prior to the settlement date. Risks may also arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts. The Funds may dispose of a commitment prior to settlement if it is deemed appropriate to do so. Proceeds of TBA sales are not received until the contractual settlement date. During the time a TBA sale commitment is outstanding, equivalent deliverable securities, or an offsetting TBA purchase commitment (deliverable on or before the sale commitment date), are held as cover for the transaction. If the TBA sale commitment is closed through the acquisition of an offsetting purchase commitment, the Fund realises a gain or loss on the commitment without regard to any unrealised gain or loss on the underlying security. If the Fund delivers securities under the commitment, the Fund Annual Report and Audited Accounts 183

186 Notes to the Financial Statements continued realises a gain or loss from the sale of the securities upon the unit price established at the date the commitment was entered into. bank interest, time deposit and money market deposit income are recognised on an accrual basis or at amortised cost basis; The Funds had TBAs outstanding as of 31 May 2014, which are included within receivable for investments sold and payable for investments purchased in the Statement of Net Assets. The market value of the Contracts for Difference ( CFDs ) is determined by the traded price on the exchange on which the underlying securities or assets are traded or admitted for trading. For underlying securities traded on markets closing after the time of the valuation, last known prices as of this time or such other time may be used. The change in market value, if any, is recorded as unrealised appreciation or depreciation in the Statement of Operations and Changes in Net Assets. Realised gains or losses on maturity or termination of the CFDs are presented in the Statement of Operations and Changes in Net Assets. The liquidating value of futures, forward or options contracts not traded on exchanges or on regulated markets and/or other regulated markets shall be their net liquidating value determined, pursuant to the policies established by the Board of Directors of the Company, on a basis consistently applied for each different variety of contract. The liquidating value of futures, forward and options contracts traded on exchanges or on regulated markets and/or other regulated markets is based upon the last available settlement prices of these contracts on exchanges and regulated markets and/or other regulated markets on which the particular futures, forward or options contracts are traded by the Company; provided that if a futures, forward or options contract could not be liquidated on the day with respect to which net assets are being determined, the basis for determining the liquidating value of such contract shall be such value as the Board of Directors of the Company may deem fair and reasonable. For the valuation of swaps and swaptions, refer to Note 2(d) for further information. (b) Cost of Sales of Investments Gains and losses on sales of investments have been determined on the basis of the average cost method. Gains and losses on sales of CFDs have been determined on cost basis using the First In First Out ( FIFO ) method. (c) Income from Investments The Company takes credit for income from its investments on the following basis: interest income is accrued daily and includes the amortisation of premiums and accretion of discounts on a straight line basis; dividend income is accrued on the ex-dividend date; (d) Financial Derivative Instruments During the year, the Funds have entered into a number of forward foreign exchange transactions and futures contracts. Open forward foreign exchange transactions and futures contracts are valued at the fair market value to close the contracts on the valuation date. Surpluses/deficits arising from these and closed unsettled contracts are taken to unrealised depreciation and are included under assets or liabilities (as appropriate) in the Statement of Net Assets. During the year, the Funds have entered into CFDs. CFDs allow investors to take synthetic long or synthetic short positions with a variable margin. Unlike shares, with CFDs the buyer is potentially liable for far more than the amount they paid on margin. This will result in the Funds holding cash received from shareholders on deposit with various institutions as described in the Prospectus. CFD positions are entered into subject to a daily financing charge, applied at a previously agreed rate above or below the applicable benchmark. The related interest income or expense is disclosed net of withholding tax in the Statement of Operations and Changes in Net Assets. The Funds can write covered call and put options and purchase call and put options. When the Funds write and/or purchase an option, an amount equal to the premium received or paid by the Funds is reflected as a liability or an asset. The liability for a written option and the asset for a purchased option is subsequently marked to market to reflect the current value of the option. When a security is sold or bought through an exercise of an option, the premium received (or paid) is deducted from (or added to) the basis of the security sold or bought. When an option expires (or the Funds enter into a closing transaction), the Funds realise a gain or loss on the option to the extent of the premiums received or paid (or gain or loss to the extent the cost of the closing transactions exceeds premium paid or received). The Funds have entered into swap agreements to exchange the return generated by one instrument for the return generated by another investment. The Funds can write credit default swaps ( CDS ) and purchase CDS. When the Funds write and/or purchase a CDS, a series of premiums is paid to or received by the Funds, in return for a payment contingent on a credit event (predefined in the agreement). The premiums are included in the cost of CDS. Where possible, swaps are marked to market based upon daily prices obtained from third party pricing agents and verified against the actual market maker. Where such quotations are not available swaps are 184 BlackRock Strategic Funds (BSF)

187 Notes to the Financial Statements continued priced based upon daily quotations from the market maker. In both cases changes in quotations are recorded as net change in unrealised appreciation or depreciation in the Statement of Operations and Changes in Net Assets. Realised gains or losses on maturity or termination of the swaps and the interest earned in relation to the swaps are presented in the Statement of Operations and Changes in Net Assets. (e) Foreign Exchange The cost of investments in currencies other than the currency of denomination of the respective Fund has been translated at the rates of exchange ruling at the time of purchase. Investments and other assets in currencies other than the currency of denomination of the respective Funds has been translated at the exchange rate prevailing at the Fund s valuation point in Luxembourg on 31 May Income and expenses in currencies other than the currency of denomination of the respective Fund have been translated at the rates of exchange prevailing on record date. The following exchange rates were used to translate the investments and other assets and other liabilities denominated in currencies for all Funds other than the base currency of the Fund at 31 May 2014: All Funds (except the BlackRock Euro Dynamic Diversified Growth Fund and BlackRock Latin American Opportunities Fund) BlackRock Euro Dynamic Diversified Growth Fund BlackRock Latin American Opportunities Fund CCY PLN RON RUB SEK SGD THB TRY TWD UYU ZAR (f) Total Combined Figures The combined figures of the Company are expressed in and include the total of the financial statements of the different Funds. For the translation of the Statement of Net Assets, the exchange rate prevailing at 16:00 in Luxembourg as at 31 May 2014 for all Funds expressed in Euros excluding BlackRock Euro Dynamic Diversified Growth Fund is: All Funds (except the BlackRock Euro Dynamic Diversified Growth Fund and BlackRock Latin American Opportunities Fund) BlackRock Euro Dynamic Diversified Growth Fund BlackRock Latin American Opportunities Fund CCY ARS AUD BRL CAD CHF CLP CNY COP CZK DKK GBP HKD HUF IDR INR JPY KRW MXN MYR NOK NZD PEN PHP For the BlackRock Euro Dynamic Diversified Growth Fund, the exchange rate prevailing at 17:00 in Luxembourg as at 31 May 2014 is: For the Statement of Operations and Changes in Net Assets, the following exchange rate is the average rate calculated over the year for all Funds expressed in Euros excluding BlackRock Euro Dynamic Diversified Growth Fund: For the BlackRock Euro Dynamic Diversified Growth Fund, the following exchange rate is the average rate calculated over the year: (g) Income Equalisation The Company operates Income Equalisation arrangements with a view to ensure that the level of net income accrued within a Fund is not affected by the issue, conversion or redemption of Fund shares during an accounting period. Annual Report and Audited Accounts 185

188 Notes to the Financial Statements continued The Income Equalisation is netted in the Movements in share capital in the Statement of Operations and Changes in Net Assets. (h) Swing Adjustment If on any dealing day the aggregate transactions in shares of all classes of a Fund result in a net increase or decrease of shares which exceeds a threshold set by the Board of Directors of the Company, the net asset value ( NAV ) of the relevant Fund may be adjusted by an amount which reflects the dealing costs that may be incurred by the Fund and the estimated bid/offer spread of the assets in which the Fund invests. In addition, the Board of Directors of the Company may agree to include anticipated fiscal charges in the amount of the adjustment. In accordance with the prospectus such a swing was applied as at 31 May 2014 to the BlackRock Global Absolute Return Bond Fund. The Management Company may, at its discretion, decide to subsidise the swing adjustment. The published/dealing NAV per share is disclosed in the Three Year Summary of Net Asset s and may include a swing pricing adjustment. This adjustment is not recognised in the Statement of Net Assets or the Statement of Operations and Changes in Net Assets. (i) Fair valuation If in any case a particular value is not ascertainable by the methods outlined above, or if the Board of Directors of the Company considers that some other method of valuation more accurately reflects the fair value of the relevant security or other asset for the purpose concerned, the method of valuation of the security or asset will be such as the Board of Directors of the Company in its absolute discretion decides. Discrepancies in the value of securities may result, for example, where the underlying markets are closed for business at the time of calculating the NAV of certain Funds. The Board of Directors of the Company may set specific thresholds, that, where exceeded, result in an adjustment to the value of these securities to their fair value by applying a specific index adjustment. For BlackRock Asia Extension Fund and BlackRock Emerging Markets Absolute Return Fund in case of price variation, the Board of Directors of the Company may decide to apply a fair valuation factor on the market value of the Fund. (j) Transaction costs Transaction costs are incremental costs that are directly attributable to the acquisition, issue or disposal of securities. An incremental cost is one that would not have been incurred if the entity had not acquired, issued or disposed of the security. When a security is recognised initially, it is measured at its market value, plus transaction costs that are directly attributable to the acquisition or issue of the security. Refer to Note 13 for further information. Transaction costs excluding custodian transaction fees on purchases or sales of securities are included within net realised gain/(loss) or net change in unrealised within the Statement of Operations and Changes in Net Assets of each Fund. Custodian transaction fees are presented in the Statement of Operations and Changes in Net Assets of the Fund. Refer to Note 6 for further information. 3. Management Company BlackRock (Luxembourg) S.A. has been appointed by the Company to act as its Management Company. The Management Company is authorised to act as a Fund Management Company in accordance with Chapter 15 of the amended 17 December 2010 Law relating to undertakings for collective investments. The Company has signed a management company agreement with the Management Company. Under this agreement, the Management Company is entrusted with the day-to-day management of the Company, with responsibility for performing directly or by way of delegation all operational functions relating to the Company s investment management, administration, and marketing of the Funds. In agreement with the Company, the Management Company has decided to delegate several of its functions as is further described in the Prospectus. BlackRock (Luxembourg) S.A. is a wholly owned subsidiary within the BlackRock Group. It is regulated by the CSSF. 4. Management and Distribution Fees During the year the Company paid management fees to the Management Company. The Company pays management fees at an annual rate as shown in Appendix F of the Prospectus. The level of management fee varies from 0.50% to 2.00% of the NAV, with the exception of Class X shares, which do not pay a management fee but rather a fee to the Investment Adviser or affiliates under an agreement. The level of management fee varies according to which Fund and share class the investor buys. These fees accrue daily, are based on the NAV of the relevant Fund and are paid monthly. Certain costs and fees are paid out of the management fee, including the fees of the Investment Advisers. Where a Fund invests a substantial proportion of its net assets in other UCITS and other Undertaking for Collective Investments ( UCIs ), the Investment Adviser will ensure that the total management fee (excluding any performance fee, if any) charged to such Fund (including management fees from other UCITS and UCIs in which it invests) shall not exceed 3.75% of the NAV of the Fund. During the year, the following active Funds were subject to management fee rebate as detailed in the Prospectus: 186 BlackRock Strategic Funds (BSF)

189 Notes to the Financial Statements continued BlackRock Emerging Markets Allocation Fund, BlackRock Euro Dynamic Diversified Growth Fund, BlackRock Fund of ishares Conservative, BlackRock Fund of ishares Dynamic, BlackRock Fund of ishares Growth, BlackRock Fund of ishares Moderate and BlackRock Global Absolute Return Bond Fund. During the year, the following active Funds were subject to fee reimbursement from the Management Company: BlackRock Emerging Markets Absolute Return Fund, BlackRock European Opportunities Absolute Return Fund, BlackRock European Opportunities Extension Fund, BlackRock Fund of ishares Conservative, BlackRock Fund of ishares Dynamic, BlackRock Fund of ishares Growth and BlackRock Fund of ishares Moderate. During the year, the Company paid distribution fees to BlackRock (Channel Islands) Limited who acted as Principal Distributor. The Company pays annual distribution fees of 1.00% of the NAV for Class C Shares, 0.50% of the NAV for Class E Shares, 0.50% of the NAV for Class L Shares and 0.75% of the NAV for Class M Shares. These fees accrue daily, are based on the NAV of the relevant Fund reflecting, when applicable, any adjustment to the NAV of the relevant Fund, and are paid monthly. The management and distribution fees per share class per Fund are disclosed in detail in the Prospectus and KIID of the Company. The Principal Distributor may rebate all or part of the fees it receives under the terms described in the current Prospectus. 5. Administration Fees The Company pays an administration fee to the Management Company. The level of administration fee may vary at the Board of Directors of the Company s discretion, as agreed with the Management Company, and will apply at different rates across the various Funds and Share Classes issued by the Company. However, it has been agreed between the Board of Directors of the Company and the Management Company that the administration fee currently paid shall not exceed 0.30% per annum. It is accrued daily, based on the NAV of the relevant Share Class and paid monthly. The rates charged per annum are as follows: Share Class Equity Funds Bond Funds Mixed Funds Fund of Funds A, C, D, E, H,U 0.30% 0.20% 0.25% I, T, X 0.05% 0.05% 0.05% K, L, M 0.10% Investment in I, T and X Shares is restricted to institutional investors within the meaning of Article 174 of the amended law of 17 December The Board of Directors of the Company and the Management Company set the level of the administration fee at a rate which aims to ensure that the total expense ratio of each Fund remains competitive when compared across a broad market of similar investment products available to investors in the Funds, taking into account a number of criteria such as the market sector of each Fund and the Fund s performance relative to its peer group. The administration fee is used by the Management Company to meet all fixed and variable operating and administrative costs and expenses incurred by the Company, with the exception of the custodian fees and distribution fees, plus any taxes thereon and any taxes at an investment or Company level. These operating and administrative expenses include all third party expenses and other recoverable costs incurred by or on behalf of the Company from time to time, including but not limited to, fund accounting fees, transfer agency fees (including sub-transfer agency and associated platform dealing charges), all professional costs, such as consultancy, legal, tax advisory and audit fees, Directors fees, travel expenses, reasonable out-of-pocket expenses, printing, publication, translation and all other costs relating to shareholder reporting, regulatory filing and licence fees, correspondent and other banking charges, software support and maintenance, operational costs and expenses attributed to the Investor Servicing teams and other global administration services provided by various BlackRock Group companies. The Management Company bears the financial risk of ensuring that the Fund s total expense ratio remains competitive. Accordingly the Management Company is entitled to retain any amount of the administration fee paid to it which is in excess of the actual expenses incurred by the Company during any year whereas any costs and expenses incurred by the Company in any year which exceed the amount of administration fee that is paid to the Management Company, shall be borne by the Management Company or another BlackRock Group company. From 1 January 2014, the fees paid to Directors who are not employees of the BlackRock Group in return for their duties performed, increased from 25,000 per annum to 30,000 per annum, gross of taxation. From 1 January 2014, the Chairman s fee increased from 27,500 per annum to 33,500 per annum, gross of taxation. For the year ended 31 May 2014, 57,083 was paid to Directors who are not employees of the BlackRock Group. Directors who are employees of the BlackRock Group are not entitled to receive a Directors fee. As previously disclosed the Administration Fee includes amounts paid to Deloitte Audit Société à responsabilité limitée relating to audit and audit related services. Detailed below are the fees paid to Deloitte Audit Société à responsabilité limitée for the year ended 31 May May-14 Audit and audit related services 226,250 Non-audit services Annual Report and Audited Accounts 187

190 Notes to the Financial Statements continued There were no fees other than those disclosed above paid to Deloitte Audit. 6. Custodian and Depository Fees The Custodian receives a fee in respect of each Fund. These fees are to remunerate the Custodian for safekeeping and transaction costs applicable to each Fund. These fees will vary in respect of each Fund depending on the value of assets under management and the volume of trading in that Fund. For Funds which have low volume trading the safekeeping fee which accrues daily, will range from 0.005% to 0.20% per annum and the transaction fees will range from 7 to 50 per transaction. For Funds which engage in higher trading volumes, the Custodian does not charge separate safekeeping and transaction fees. The Custodian receives a fee which is charged on a sliding scale, based on the value of assets under management and the volume of trading within each Fund. These fees range from 1 basis point to 15 basis points of assets under management of each Fund, depending on whether a particular Fund is considered to be a medium volume trading Fund or high volume trading Fund. Each of the Funds is also subject to a minimum annual fee which will be set at either, 30,000 for a low volume trading Fund, 100,000 for a medium volume trading Fund or 150,000 for a high volume trading Fund. Trading volumes for each Fund vary according to the investment strategy of each Fund. The combined custody cost to each Fund depends on its asset allocation and trading activity at any time. 7. Performance Fees A performance fee may be payable out of each Share Class of each Fund with the exception of Class X shares which do not pay a performance fee, in addition to other fees and expenses mentioned in the Prospectus. The performance fee accrues on each Valuation Day and is equal to 10% or 20% (as applicable to the relevant Fund, as stated in Appendix F of the Prospectus) of the amount by which the NAV per share return exceeds the appropriate benchmark return described in further detail in Appendix E of the Prospectus. Two methods of calculation are used and are referred to as Type A and Type B the method applicable to each Fund is indicated in Appendix E of the Prospectus. Crystallisation of the performance fee occurs on the last day of each Performance Period or where a shareholder redeems or converts all or part of his shares before the end of a Performance Period. 8. Tax Luxembourg The Company is registered under Luxembourg law as an investment company. Accordingly, no Luxembourg income or capital gains tax is at present payable by the Company. However, it is subject to an annual taxe d abonnement calculated at an annual rate of 0.05%, and in the case of all Class I, Class T and Class X Shares, of 0.01% of the NAV of each Fund at the end of each quarter. For the year ended 31 May 2014, 1,995,764 was charged in relation to Luxembourg tax. Belgium The Company is registered with the Banking and Finance Commission in Belgium in accordance with Article 154 of the Law of 3 August 2012 relating to financial transactions and the financial markets. Funds registered for public distribution in Belgium are subject to an annual tax of 0.10% on the net assets value of units distributed in Belgium via Belgian intermediaries as at 31 December of the previous year. Effective 1 January 2014, this rate was reduced to 0.09%. For the year ended 31 May 2014, there was no charge in relation to Belgian tax. United Kingdom Reporting Funds The UK Reporting Funds regime applies to the Company. Under this regime, investors in UK Reporting Funds are subject to tax on the share of the UK Reporting Funds income attributable to their holdings in the Fund, whether or not distributed, but any gains on disposal of their holdings are subject to capital gains tax. A list of the Funds which currently have UK Reporting Fund status is available at: 9. Brazilian Transaction Tax Brazilian transaction tax became effective from 20 October Effective 5 October 2010 the transaction tax rate was increased to 4% from the previous 2% rate. The rates were changed again effective 19 October 2010 and 1 December Currently the following rates apply to foreign currency exchange transactions by non-residents making investments in the Brazilian financial and capital markets. A 0% rate applies to transactions related to investments in listed shares or shares issued in an Initial Public offering; A 6% rate applies to transactions related to fixed income investments or investment in investment funds. Effective 4 June 2013, this rate was reduced to 0%. For the year ended 31 May 2014, there was no charge in relation to Brazilian tax. 10. Investment Advice The Management Company has delegated some management and investment advice to the Investment Advisers: BlackRock Financial Management, Inc., BlackRock Institutional Trust Company N.A., BlackRock Investment Management LLC, BIM UK and BlackRock (Singapore) Limited as described in the Prospectus. The Investment Advisers provide advice and management in the areas of stock and sector selection and strategic allocation. BIM UK has sub-delegated some 188 BlackRock Strategic Funds (BSF)

191 Notes to the Financial Statements continued of these functions to BlackRock Asset Management North Asia Limited, BlackRock Investment Management (Australia) Limited and BlackRock Japan Co., Ltd. Notwithstanding the appointment of the Investment Advisers, the Management Company accepts full responsibility to the Company for all investment transactions. BlackRock Institutional Trust Company N.A. provides investment advice on the following Funds: BlackRock Americas Diversified Equity Absolute Return Fund BlackRock Asia Extension Fund BlackRock Emerging Markets Allocation Fund BlackRock Global Absolute Return Bond Fund BIM UK provides investment advice on the following Funds: BlackRock Emerging Markets Absolute Return Fund BlackRock Emerging Markets Allocation Fund BlackRock Emerging Markets Flexi Dynamic Bond Fund BlackRock Euro Dynamic Diversified Growth Fund BlackRock European Absolute Return Fund BlackRock European Constrained Credit Strategies Fund BlackRock European Credit Strategies Fund BlackRock European Diversified Equity Absolute Return Fund BlackRock European Opportunities Absolute Return Fund BlackRock European Opportunities Extension Fund BlackRock Fixed Income Strategies Fund BlackRock Fund of ishares Conservative BlackRock Fund of ishares Dynamic BlackRock Fund of ishares Growth BlackRock Fund of ishares Moderate BlackRock Global Absolute Return Bond Fund BlackRock Mining Opportunities Fund BlackRock Financial Management, Inc. provides investment advice on the following Funds: BlackRock European Constrained Credit Strategies Fund BlackRock European Credit Strategies Fund BlackRock Global Absolute Return Bond Fund BlackRock (Singapore) Limited provides investment advice on the following Fund: BlackRock Emerging Markets Allocation Fund BlackRock Global Absolute Return Bond Fund BlackRock Investment Management, LLC provides investment advice on the following Fund: BlackRock Latin American Opportunities Fund BIM UK has sub-delegated some of these functions to BlackRock Asset Management North Asia Limited for the following Funds: BlackRock Emerging Markets Allocation Fund BlackRock Global Absolute Return Bond Fund BIM UK has sub-delegated some of these functions to BlackRock Japan Co., Ltd.for the following Funds: BlackRock Global Absolute Return Bond Fund BIM UK has sub-delegated some of these functions to BlackRock Investment Management (Australia) Limited for the following Funds: BlackRock Global Absolute Return Bond Fund 11. Transactions with Connected Persons The ultimate holding company of the Management Company, the Principal Distributor and the Investment Advisers is BlackRock, Inc., a company incorporated in Delaware, USA. PNC Financial Services Group Inc., is a substantial shareholder in BlackRock Inc. When arranging transactions in securities for the Company, companies in the PNC Group may have provided securities, brokerage, foreign exchange banking and other services or may have acted as principal on their usual terms and may benefit therefrom. Commission has been paid to brokers and agents in accordance with the relevant market practice and the benefit of any bulk or other commission discounts or cash commission rebates provided by brokers or agents have been passed on to the Company. The services of PNC Group companies could have been used by the Investment Advisers where it was considered appropriate to do so provided that their commissions and other terms of business are generally comparable with those available from unassociated brokers and agents in the markets concerned, and that this is consistent with the above policy of obtaining best results. During the year, there have been no transactions which were outside the ordinary course of business or which were not on normal commercial terms. Investments in funds managed by BlackRock have been disclosed as a footnote in the relevant Portfolio of Investments. There were no transactions of the Company effected through BlackRock companies. 12. Dividends The Board of Directors of the Company s current policy is to retain and reinvest all net income except for income attributable to distributing share classes. For the distributing share classes the policy is to distribute substantially all the investment income for the year after deduction of expenses. The Board of Directors of the Company may also determine if and to what extent dividends may include distributions, from both net realised and net unrealised capital gains. 13. Transaction costs In order to achieve its investment objective, a Fund will incur transactions costs in relation to trading activity on its portfolio. Disclosed in the table below are separately identifiable transaction costs incurred by each Fund for the year ended 31 May These include commission costs, settlement fees and broker fees. Annual Report and Audited Accounts 189

192 Notes to the Financial Statements continued Fund CCY Transaction Cost BlackRock Americas Diversified Equity Absolute Return Fund BlackRock Asia Extension Fund BlackRock Emerging Markets Absolute Return Fund 177,838 BlackRock Emerging Markets Allocation Fund BlackRock Emerging Markets Flexi Dynamic Bond Fund 11,669 BlackRock Euro Dynamic Diversified Growth Fund 119,228 BlackRock European Absolute Return Fund 96,329 BlackRock European Constrained Credit Strategies Fund 23,935 BlackRock European Credit Strategies Fund 214,288 BlackRock European Diversified Equity Absolute Return Fund BlackRock European Opportunities Absolute Return Fund BlackRock European Opportunities Extension Fund 229,658 BlackRock Fixed Income Strategies Fund 120 BlackRock Fund of ishares Conservative 2,802 BlackRock Fund of ishares Dynamic 1,087 BlackRock Fund of ishares Growth 3,237 BlackRock Fund of ishares Moderate 5,781 BlackRock Global Absolute Return Bond Fund 6,986 BlackRock Latin American Opportunities Fund 413,780 BlackRock Mining Opportunities Fund 55,079 Not all transaction costs are separately identifiable. For fixed income investments, forward currency contracts and other derivative contracts, transaction costs will be included in the purchase and sales price of the investment. Whilst not separately identifiable these transaction costs will be captured within the performance of each Fund. 14. Securities Pledged or Given in Guarantee Securities which are pledged as collateral or given in guarantee for OTC derivatives traded under International Swaps and Derivatives Association ( ISDA ), are evidenced by in the Portfolio of Investments of the Funds. As at 31 May 2014 the value of these securities amounts to 75,831,071. Securities which have been received in guarantee are detailed in table below. As at 31 May 2014 the value of these securities amounts to 17,947,398. Fund Holdings () BlackRock European Constrained Credit Strategies Fund BlackRock European Constrained Credit Strategies Fund BlackRock European Credit Strategies Fund 297,000 Bundesrepublik Deutschland 4% 4/7/ , ,000 French Treasury Note BTAN 0.45% 25/7/2016 1,016,279 1,879,000 Netherlands Government Bond 3.75% 15/1/23 3,057,639 Fund Holdings () BlackRock European Credit Strategies Fund BlackRock European Credit Strategies Fund BlackRock European Credit Strategies Fund BlackRock European Credit Strategies Fund 2,534,000 Deutsche Bundesrepublik Inflation Linked Bond 1.5% 15/4/16 3,570,787 2,972,000 Netherlands Government Bond 3.5% 15/7/20 4,685,699 1,882,000 Bundesrepublik Deutschland 2.5% 4/7/44 2,711,543 1,816,000 Netherlands Government Bond 0.000% 15/4/16 2,467,746 TOTAL 17,947, Cash collateral The Fund trades derivatives with a range of counterparties. The counterparties to the swap contracts, forward transactions, futures contracts, options written (put and call), options purchased (put and call) and swaptions are shown below the portfolio of investments. The swap contracts, forward transactions, futures contracts, options written (put and call), options purchased (put and call) and swaptions are traded with the following counterparties: Bank of America N.A., Barclays Bank Plc, BNP Paribas S.A., Citibank N.A. London, Credit Suisse International, Deutsche Bank AG London, Goldman Sachs International, HSBC Bank Plc, JP Morgan Chase Bank N.A., Merrill Lynch International, Morgan Stanley and Co. International Plc, Royal Bank of Canada (UK), Royal Bank of Scotland Plc, Société Générale, Standard Chartered Bank, UBS AG London and Westpac Banking Corp. Margin cash is paid or received on swap contracts, futures contracts, options written (put and call), options purchased (put and call) and swaptions to cover any exposure by the counterparty to the Company or by the Company to the counterparty. Due to brokers on the Statement of Net Assets consists primarily of cash and margin received from Fund s clearing brokers and various counterparties. Due from brokers on the Statement of Net Assets consists primarily of cash and margin paid to the Fund s clearing brokers and various counterparties. As at 31 May 2014, the Company had received margin of 13,087,601 from counterparties and had pledged margin of 64,435,216 relating to swap contracts, futures contracts, options written (put and call), options purchased (put and call) and swaptions. 16. Efficient Portfolio Management Techniques The Funds may engage in derivative transactions for the purpose of efficient portfolio management. Please see further disclosures in Note 17 Financial Derivative Instruments and each Portfolio of Investments of the Funds. 190 BlackRock Strategic Funds (BSF)

193 Notes to the Financial Statements continued 17. Financial Derivative Instruments The Funds may buy and sell financial derivative instruments. See further details in the specific Fund s Portfolio of Investments. Underlying exposure, as disclosed in the respective portfolio of Investments, has been calculated according to the guidelines issued by the European Securities and Market Authority ( ESMA ) and represents the market value of an equivalent position in the assets underlying each financial derivative instrument. The underlying exposure on the bond futures is calculated off the market value of the bonds rather than the cheapest to deliver security. On 27 May 2014, the Board of Directors of the Company communicated in a letter to shareholders that a capacity limit was introduced on the BlackRock European Credit Strategies Fund and the BlackRock European Constrained Credit Strategies Fund, in order to ensure that the Funds can be optimally managed and for the interests of shareholders to be protected. Effective 23 July 2014, the BlackRock European Credit Strategies Fund reached this capacity limit and is closed to new subscriptions. 18. Subsequent Events Effective 2 June 2014, the BlackRock Global Long/Short Equity Fund, denominated in was launched. Effective 25 June 2014, the BlackRock Multi-Strategy Absolute Return Fund, denominated in was launched. In a letter to shareholders dated 27 June 2014, the Board of Directors of the Company advised shareholders of its decision to liquidate the assets held in the underlying investment portfolio for each of the following Funds, with the intention of distributing redemption proceeds to shareholders on 1 September 2014: BlackRock Fund of ishares Conservative BlackRock Fund of ishares Dynamic BlackRock Fund of ishares Growth BlackRock Fund of ishares Moderate In a subsequent letter to shareholders dated 21 July 2014, in order to facilitate an orderly exit from the Funds for all shareholders, the Board of Directors of the Company decided to postpone the effective date of the closure until 31 December 2014 (the New Effective Date ). The Funds were reopened to subscriptions from 8 July The Board of Directors of the Company will write to shareholders closer to the New Effective Date but shareholders may redeem their investment at any time before this. On 22 July 2014, the Board of Directors of the Company communicated in a letter to shareholders that a capacity limit was introduced on the BlackRock European Opportunities Extension Fund, in order to ensure that the Fund can be optimally managed and for the interests of shareholders to be protected. Effective 22 July 2014, the BlackRock European Opportunities Extension Fund reached this capacity limit and is closed to new subscriptions. Annual Report and Audited Accounts 191

194 Deloitte Audit Société à responsabilité limitée 560, rue de Neudorf L-2220 Luxembourg B.P L-1011 Luxembourg Tel: Fax: To the Shareholders of BlackRock Strategic Funds SICAV REPORT OF THE REVIS D ENTREPRISES AGREE Following our appointment by the annual general meeting of the Shareholders of the Company, we have audited the accompanying financial statements of BlackRock Strategic Funds SICAV and of each of its Sub-funds, which comprise the statement of net assets and the portfolio of investments as at 31 May 2014 and the statement of operations and changes in net assets for the year then ended, and a summary of significant accounting policies and other explanatory information. Responsibility of the Board of Directors of the Company for the financial statements The Board of Directors of the Company is responsible for the preparation and fair presentation of these financial statements in accordance with Luxembourg legal and regulatory requirements relating to the preparation of the financial statements and for such internal control as the Board of Directors of the Company determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Responsibility of the réviseur d entreprises agréé Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing as adopted for Luxembourg by the Commission de Surveillance du Secteur Financier. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance 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 réviseur d entreprises agréé s judgement, 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 réviseur d entreprises agréé 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 the Board of Directors of the Company, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements give a true and fair view of the financial position of BlackRock Strategic Funds SICAV and of each of its Sub-funds as of 31 May 2014, and of the results of their operations and changes in their net assets for the year then ended in accordance with Luxembourg legal and regulatory requirements relating to the preparation of the financial statements. Société à responsabilité limitée au capital de RCS Luxembourg B N d autorisation d établissement BlackRock Strategic Funds (BSF)

195 Deloitte. Other matter Supplementary information included in the annual report has been reviewed in the context of our mandate but has not been subject to specific audit procedures carried out in accordance with the standards described above. Consequently, we express no opinion on such information. However, we have no observation to make concerning such information in the context of the financial statements taken as a whole. For Deloitte Audit, Cabinet de révision agréé Justin Griffiths, Réviseur d entreprises agréé Partner Luxembourg, 23 September 2014 Annual Report and Audited Accounts 193

196 General Information Current Prospectus The Company s Prospectus dated 28 May 2014, and the latest KIIDs along with copies of the Application Form may be obtained from the local Investor Servicing Centre, the Manager or any of the Representatives or Distributors. Copies of the Company s Articles of Association and the Audited Annual and Unaudited Interim Report and Accounts may also be obtained free of charge from any of these offices and from the Paying Agents. All these documents are also available from Representatives The representative in Poland is Dubinski Fabrycki Jelenski, ul. Zielna 37, Warsaw, Poland. The representative in Sweden is BlackRock Investment Management (UK) Limited, Filial Stockholm, Master Samuelsgatan 1, Stockholm, Sweden. The representative in Switzerland is BlackRock Asset Management Switzerland Limited, Bahnhofstrasse 39, 8001 Zürich, Switzerland. Purchases and Sales A detailed list of investments purchased and sold for any Fund during the period is available upon request, free of charge, from the Registered office, or the offices of the Representatives as mentioned above. Authorised Status The Company is an undertaking for Collective Investment in Transferable securities ( UCITS ) under the Luxembourg Law of 17 December 2010, as amended. Regulatory consents have been obtained or appropriate notifications have been made for the distribution of shares of the Company s Funds in the umbrella in the following countries: Austria, Belgium, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Jersey, Luxembourg, Netherlands, Norway, Poland, Spain, Sweden, Switzerland and the United Kingdom. Shares of certain of the Company s Funds may also be offered in Singapore by private placement. Paying Agents Austria Raiffeisen Bank International AG Am Stadtpark Vienna Belgium J.P. Morgan Chase Bank, Brussels Branch 1 Boulevard du Roi Albert II Brussels B-1210 Belgium Italy Allfunds Bank, S.A., Milan branch Via Santa Margherita Milan Banca Sella Holding S.p.A., Piazza Gaudenzio Sella 1, Biella BNP Paribas Securities Services Succursale di Milano Via Ansperto Milan Société Générale Securities Services S.p.A Registered Office Via Benigno Crespi 19/A, MAC II Milan Banca Monte dei Paschi di Siena S.p.A Registered Office Piazza Salimbeni Siena State Street Bank S.p.A Registered Office Via Ferrante Aporti Milan Luxembourg (Central Paying Agent) J.P. Morgan Bank Luxembourg S.A. 6C, route de Trèves L-2633, Senningerberg Switzerland J.P. Morgan Chase Bank, National Association, Columbus, Zurich Branch Dreikönigstrasse 21 CH-8002 Zurich United Kingdom J.P. Morgan Trustee and Depositary Company Limited Hampshire Building, 1 st Floor Chaseside Bournemouth BH7 7DA 194 BlackRock Strategic Funds (BSF)

197 Appendix I Global Exposure and Leverage (Unaudited) Global Exposure In accordance with current BlackRock policy, global exposure is measured using the at Risk ( VaR ) approach which considers the full constituents of the portfolio. VaR is a statistical risk measure that estimates the potential loss from adverse market movements in an ordinary market environment. A VaR number is defined at a specified probability and a specified time horizon. The VaR calculations are based on a confidence level of 99% with a holding period of not greater than 1 month (20 days) and a historical observation of not less than 1 year (250 days). The model used for the Funds is a parametric factor model. For Funds which use a relative VaR approach BlackRock Risk & Quantitative Analysis ( RQA ) determines a reference portfolio as the basis for the relative VaR calculation. The reference portfolio is typically the index benchmark also established as the reference point for performance data in respect of the relevant Fund. This is an index (or composite of indices) constructed by a recognised index provider(s) from relevant securities which are eligible for investment by the Funds. This process gives appropriate consideration to the availability of indices with construction rules which are themselves compliant with diversification rules. Where a Fund is monitored using VaR, the Investment Manager will observe the regulatory limit and any internal risk limits which may be appropriate for the portfolio. The table below details the highest, lowest and average utilisation of the VaR limit, expressed as a percentage of the respective absolute or relative VaR regulatory limit. For relative VaR, the VaR of the respective Fund s portfolio will not exceed twice the VaR of the reference portfolio. Utilisation refers to the level of risk taken in this context. Highest utilisation of the VaR limit % Lowest utilisation of the VaR limit % Average utilisation of the VaR limit % Market Risk Reference Fund Approach Portfolio BlackRock Americas Diversified Equity Absolute Return Fund Absolute VaR N/A 30.73% 12.11% 13.79% BlackRock Asia Extension Fund Relative VaR MSCI All Country Asia ex Japan Index 61.41% 48.15% 51.34% BlackRock Emerging Markets Absolute Return Fund Absolute VaR N/A 55.00% 19.47% 38.35% BlackRock Emerging Markets Allocation Fund Relative VaR 60% MSCI Emerging Markets Index/40% JPMorgan Emerging Markets Bond Index Plus 49.66% 32.57% 42.87% BlackRock Emerging Markets Flexi Dynamic Bond Fund Absolute VaR N/A 52.12% 13.19% 27.21% BlackRock Euro Dynamic Diversified Growth Fund Absolute VaR N/A 21.46% 13.04% 16.54% BlackRock European Absolute Return Fund Absolute VaR N/A 14.60% 6.03% 9.99% BlackRock European Constrained Credit Strategies Fund Absolute VaR N/A 10.02% 3.97% 5.96% BlackRock European Credit Strategies Fund Absolute VaR N/A 10.63% 4.84% 6.82% BlackRock European Diversified Equity Absolute Return Fund Absolute VaR N/A 24.29% 15.33% 20.48% BlackRock European Opportunities Absolute Return Fund 1 Absolute VaR N/A N/A N/A N/A BlackRock European Opportunities Extension Fund Relative VaR S&P Europe BMI Index 52.84% 44.06% 47.76% BlackRock Fixed Income Strategies Fund Absolute VaR N/A 6.31% 1.86% 3.65% BlackRock Fund of ishares Conservative Absolute VaR N/A 20.71% 8.40% 12.24% BlackRock Fund of ishares Dynamic Absolute VaR N/A 43.56% 28.53% 34.47% BlackRock Fund of ishares Growth Absolute VaR N/A 36.35% 22.06% 27.18% BlackRock Fund of ishares Moderate Absolute VaR N/A 29.16% 15.27% 19.91% BlackRock Global Absolute Return Bond Fund Absolute VaR N/A 3.92% 2.22% 2.87% BlackRock Latin American Opportunities Fund Relative VaR MSCI Emerging Market Latin America Index 52.89% 48.18% 50.03% BlackRock Mining Opportunities Fund 1 Relative VaR HSBC Global Mining Index N/A N/A N/A 1 As the BlackRock European Opportunities Absolute Return Fund and the BlackRock Mining Opportunities Fund were liquidated on 17 July 2013 and 18 March 2014 respectively, no statistical data has been calculated. Annual Report and Audited Accounts 195

198 Appendix I Global Exposure and Leverage (Unaudited) continued Leverage The use of derivatives may expose Funds to a higher degree of risk. In particular, derivative contracts can be highly volatile, and the amount of initial margin is generally small relative to the size of the contract so that transactions may be leveraged in terms of market exposure. A relatively small market movement may have a potentially larger impact on derivatives than on standard bonds or equities. Leveraged derivative positions can therefore increase Funds volatility. The leverage is calculated on a gross exposure basis, by taking the sum of the notional values of the derivatives used by a Fund, without netting, and is expressed as a percentage of the NAV. Disclosed in the table below is the level of leverage employed during the year. Average leverage Fund employed during the year BlackRock Americas Diversified Equity Absolute Return Fund % BlackRock Asia Extension Fund % BlackRock Emerging Markets Absolute Return Fund % BlackRock Emerging Markets Allocation Fund % BlackRock Emerging Markets Flexi Dynamic Bond Fund % BlackRock Euro Dynamic Diversified Growth Fund 84.15% BlackRock European Absolute Return Fund 68.58% BlackRock European Constrained Credit Strategies Fund % BlackRock European Credit Strategies Fund % BlackRock European Diversified Equity Absolute Return Fund % BlackRock European Opportunities Absolute Return Fund 1 N/A BlackRock European Opportunities Extension Fund % BlackRock Fixed Income Strategies Fund % BlackRock Fund of ishares Conservative 0.00% BlackRock Fund of ishares Dynamic 0.00% BlackRock Fund of ishares Growth 0.00% BlackRock Fund of ishares Moderate 0.00% BlackRock Global Absolute Return Bond Fund % BlackRock Latin American Opportunities Fund 0.00% BlackRock Mining Opportunities Fund 1 N/A 1 As the BlackRock European Opportunities Absolute Return Fund and the BlackRock Mining Opportunities Fund were liquidated on 17 July 2013 and 18 March 2014 respectively, no statistical data has been calculated. 196 BlackRock Strategic Funds (BSF)

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200 2014 BlackRock, Inc. All Rights reserved. BLACKROCK, BLACKROCK SOLUTIONS, ishares, SO WHAT DO I DO WITH MY MONEY, INVESTING FOR A NEW WORLD, and BUILT FOR THESE TIMES are registered and unregistered trademarks of BlackRock, Inc. or its subsidiaries in the United States and elsewhere. All other trademarks are those of their respective owners. PRISMA 14/1218 BSF AR ENG 0514 FOR MORE INFORMATION +44 (0) blackrockinternational.com 31 MAY 2014