INTERIM REPORT AND UNAUDITED ACCOUNTS TITLE (40 50 CHARACTERS)

Transcription

1 INTERIM REPORT AND UNAUDITED ACCOUNTS TITLE (40 50 CHARACTERS) BLACKROCK GLOBAL FUNDS (BGF) SUBTITLE (40-50 CHARACTERS) R.C.S. Luxembourg: B FEBRUARY 2015

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3 Contents BGF Chairman s Letter to Shareholders 2 BGF Investment Managers Report 4 Board of Directors 12 Management and Administration 12 Statement of Net Assets 13 Three Year Summary of Net Asset Values 19 Statement of Operations and Changes in Net Assets 48 Statement of Changes in Shares Outstanding 60 Portfolio of Investments ASEAN Leaders Fund 82 Asia Pacific Equity Income Fund 84 Asian Dragon Fund 87 Asian Growth Leaders Fund 89 Asian Local Bond Fund 91 Asian Tiger Bond Fund 94 China Fund 100 Continental European Flexible Fund (1) 102 Emerging Europe Fund 104 Emerging Markets Bond Fund 106 Emerging Markets Corporate Bond Fund 112 Emerging Markets Equity Income Fund 117 Emerging Markets Fund 119 Emerging Markets Investment Grade Bond Fund 121 Emerging Markets Local Currency Bond Fund 124 Euro Bond Fund 127 Euro Corporate Bond Fund 141 Euro Reserve Fund 149 Euro Short Duration Bond Fund 151 Euro-Markets Fund 161 European Equity Income Fund 163 European Focus Fund 165 European Fund 167 European Special Situations Fund 169 European Value Fund 171 Fixed Income Global Opportunities Fund 173 Flexible Multi-Asset Fund 216 Global Allocation Fund 232 Global Corporate Bond Fund 249 Global Dynamic Equity Fund 261 Global Enhanced Equity Yield Fund 273 Global Equity Fund 277 Global Equity Income Fund 280 Global Government Bond Fund 282 Global High Yield Bond Fund Global Inflation Linked Bond Fund Global Multi-Asset Income Fund Global Opportunities Fund Global SmallCap Fund India Fund Japan Flexible Equity Fund Japan Small & MidCap Opportunities Fund Latin American Fund Natural Resources Growth & Income Fund New Energy Fund North American Equity Income Fund Pacific Equity Fund Renminbi Bond Fund Swiss Small & MidCap Opportunities Fund United Kingdom Fund US Basic Value Fund US Dollar Core Bond Fund US Dollar High Yield Bond Fund US Dollar Reserve Fund US Dollar Short Duration Bond Fund US Flexible Equity Fund US Government Mortgage Fund US Growth Fund US Small & MidCap Opportunities Fund World Agriculture Fund World Bond Fund World Energy Fund World Financials Fund World Gold Fund World Healthscience Fund World Mining Fund World Real Estate Securities Fund World Technology Fund Notes to the Financial Statements General Information Appendix I Share Classes (1) Fund reopened to subscriptions, see Note 1, for further details Subscriptions may be made only on the basis of the current Prospectus, together with the most recent annual report and audited accounts and interim report and unaudited accounts. Copies are available from the Investor Services Centre, the Transfer Agent, the Manager or any of the Distributors. Interim Report and Unaudited Accounts 1

4 BGF Chairman s Letter to Shareholders February 2015 Dear Shareholder, I am writing to update you on the activities of BlackRock Global Funds (BGF) over the six months to the end of February The Funds performance is covered in more detail in the separate Investment Manager s report in which you will see that most asset classes were relatively flat over the period, impacted by uncertainty in oil prices, European quantitative easing and the prospect of an interest rate rise in the US. Two considerations weighed heavily on markets during the six months: the tumbling oil price and eurozone quantitative easing. The oil price halved from September to January and has yet to recover any significant ground. The fall gathered momentum when Saudi Arabia said in December that it would not cut output to support oil markets even if non-opec nations did so. Market participants differed about the potential impact of the fall. While many economists suggested it was unequivocally positive for the global economy, others saw it as a sign of waning global demand and that it was inextricably linked to weakness in China. However, towards the end of the period there was increasing optimism that its impact would be, in aggregate, positive. The effect of the lower oil price is not uniform, particularly in emerging markets. Oil importers such as India and China look set to benefit, but oil exporters have been hit hard. Russia has suffered and Venezuela now appears to be on the cusp of a sovereign default. The oil price decline is, unquestionably, lowering inflation rate expectations around the globe, which in turn has given many central banks some breathing space. In terms of central banks, the European Central Bank (ECB) surprised markets with the scale of its long-awaited quantitative easing programme in late January The combined purchases of public and private sector securities will amount to 60bn per month. This will carry on until the end of September 2016 or until there is a sustained adjustment in the path of inflation. This means the package will amount to at least 1.1 trillion. Falling inflation expectations and the shot in the arm from European quantitative easing conspired to push many developed market government bonds to new low or even negative yields. The yield on the German 10 year bund dipped below 1% in September 2014 and fell steadily to the end of the period. Investment-grade bond yields tracked sovereign bond yields lower, while high yield bonds remained flat over the period. In aggregate, equity markets were flat over the six month period, however, this disguised a lot of underlying volatility, with significant sell-offs in September and October 2014, but there were new highs for many markets in February European equity markets were strong, rising sharply on the announcement of the quantitative easing programme. Regulatory change continued throughout Europe and a number of these future changes could have implications for investors. Key changes included: Revisions to the Markets in Financial Instruments Directive (MiFID II) and the new Markets in Financial Instruments Regulation (MiFIR): the revised directive and new regulations have now been finalised and will come into effect at the beginning of Requirements being introduced include restrictions on how financial advisers may be remunerated which could result in advisers amending their services. European Market Infrastructure Regulation (EMIR): the introduction of mandatory central clearing of derivatives remains outstanding, with introduction likely during Once introduced, central clearing is likely to result in an increase in trading costs due to the mandatory use of central counterparties as clearing houses for trades. Packaged Retail and Insurance-based Investment Products (PRIIPs): the text of this regulation is now agreed and will introduce similar documents to the UCITS key investor information document (KIID) for PRIIPs. Existing UCITS funds are provided with a grace period until 2019 after which the UCITS KIID may need to be amended. The assets under management (AUM) in the BGF range moved from US$120.6bn to $118.7bn over the period. The Global Multi-Asset Income Fund proved one of the most popular with clients as they continued to seek out diversified sources of income. Equally, the Asian range proved popular, as investors started to return to the region, with the Asian Growth Leaders Fund and China Fund attracting significant assets. The information stated in this report is historical and not necessarily indicative of future performance. 2 BlackRock Global Funds (BGF)

5 BGF Chairman s Letter to Shareholders February 2015 continued Despite the impacts of quantitative easing, as discussed earlier in this letter, the demand for fixed income funds continued. However, demand was directed towards those funds that could offer some measure of protection against rising interest rates. As such the Fixed Income Global Opportunities Fund saw $2.67bn in new inflows over the six months, a rise of 65%. The US Dollar Short Duration Bond Fund also saw a significant rise in assets. The continued demand for dollar assets also saw the US Dollar Core Bond Fund draw $228.52m in assets over the period. In general, equity funds saw stronger flows than fixed income, particularly in Europe and Asia. Although European markets were weak in the first part of the period under review, their strength in the aftermath of the quantitative easing announcement saw the net asset value (NAV) of the European Equity Income Fund rise 1.07bn over the period. Investors continued to favour value style funds over more growth-orientated funds, with the European Value Fund also seeing a healthy increase in NAV, but the European Fund shed assets over the period. Its NAV fell m, a drop of 5.7%. The opposite was the case in Asia, with growth funds favoured. The Asian Growth Leaders Fund was the most popular of the range. Its NAV rose % to $328.97m. The China Fund also grew its assets by $467.8m over the period (a rise of 48%). This reflected improved sentiment towards Asian markets in general. Wider emerging market equities were largely neutral over the period, though investors showed a marked preference for the income approach. The Emerging Markets Equity Income Fund saw assets rise 3.96% to US$533.66m, while the Emerging Markets Fund saw its NAV slide from US$ to US$650.31m. US equity funds continued to benefit from the strength of the dollar and the economic momentum. The US Flexible Equity Fund and US Small & MidCap Opportunities Fund saw the greatest relative increase in NAV, rising $1.01bn to US$1.03bn, and US$427.43m to US$475.87m respectively. Higher yield corporate and sovereign bond funds were generally weak over the period, having been extremely strong in the previous 12 months. The strength of the US dollar versus emerging market currencies was also a factor. The Emerging Markets Local Currency Bond Fund shed $88.52m in assets to end the period with a NAV of $820.23m. The Asian Local Bond Fund s NAV dropped $4.84m to $21.88m. Equally, the Global High Yield Bond Fund saw its assets drop 15.94% to $2.12bn. Flows into the World Mining Fund reflected the slide in the oil price and the resulting poor sentiment towards the sector. The World Mining Fund decreased by US$2.3bn to US$5.36bn over the period. The World Gold Fund also decreased 14.72% to US$3.2bn. The Natural Resources Growth & Income Fund managed to increase its assets over the period. We continue to develop our fund range in an effort to ensure that it meets our clients requirements as economies and markets grow, change and evolve. Should you have any questions on any of this material, please contact us via our website: Yours faithfully, Nicholas C.D. Hall Chairman March 2015 The information stated in this report is historical and not necessarily indicative of future performance. Interim Report and Unaudited Accounts 3

6 BGF Investment Managers Report Performance overview 1 September 2014 to 28 February 2015 Most asset classes were flat over the period. The sovereign bond market was initially supported by lower inflation expectations on the back of the lower oil price, but it sold off towards the end of the period. Equities were supported by quantitative easing in the eurozone and the continued deferring of interest rate rises in the US. However, the spectre of deflation continued to curb investor enthusiasm. Economic data from the US continued to improve with job creation figures beating expectations. In November, the US economy created 321,000 jobs significantly ahead of analyst expectations of 230,000. This momentum continued in December 2014 and January 2015, and appeared to cement the prospect of an interest rate rise in mid The strong US dollar and weaker oil price are the only factors that may hold back the Federal Reserve. In the UK, data also continued to improve, with the Office for National Statistics showing that 2014 Gross Domestic Product (GDP) growth was 2.6%, the UK s highest growth since Bank of England Governor Mark Carney said inflation was likely to turn negative over the next few months and to stay low for the next year. However, he also said that the likely path for UK interest rates and inflation was up. Equity market indices were volatile over the period. In the early part of the period, equity market indices slid to lows not seen since April 2014, but they regained momentum to touch new highs in early February The S&P 500 hit 2,110 on 16 February European equities were particularly strong: the announcement of quantitative easing reversed a period of weakness. US equities continued their strong run, though there are concerns that the prospective rise in interest rates may bring volatility. The weakest areas were in commodities and natural resources stocks, which were sold off as the oil price fell. This also had an impact on some emerging markets, notably Latin America, which saw weaker performance. Technology and healthcare, in contrast, continued their strong run, as investors looked to stable businesses as a defence against volatility. Government bond yields continued to defy expectations, moving lower over the six months. This saw a sharp reversal in February, but they were still lower overall, supported by declining inflation expectations as the oil price tumbled. The high yield market was volatile, but had recovered by the end of the period and ended flat. The investment-grade market moved in line with sovereign bond yields and was stable over the six months. Fund Performance Performance data stated is for the main (A) share class of the relevant Fund, stated in the base currency of the Fund net of fees. Equity Fund Performance The Global Equity Fund rose approximately 2% in US dollar terms over the period, outperforming its MSCI AC World Index benchmark, which rose just 1%. The Global Equity Income Fund, which has the same benchmark, rose by just 0.4%. The Global Opportunities Fund was up by 2.54%, 1.6% ahead of its benchmark, the MSCI AC World Index. The Global SmallCap Fund saw more difficult performance after a strong run, falling 1.7% against a rise of 0.24% in its benchmark, the MSCI AC World Small Cap Index. European equities gained momentum in the wake of the announcement of quantitative easing, as investors started to see an end to the deflationary threat. The Continental European Flexible Fund rose by 19.4%, 3.6% ahead of its benchmark, the FTSE World Europe ex UK Index. The European Value Fund was up by 16.2%, 5.3% ahead of its benchmark. The European Equity Income Fund rose by 19% and beat its benchmark by 4.1% over the period. Finally, the European Focus Fund was up by 18.7%, 3.8% ahead of its benchmark, the MSCI Europe Index and the European Special Situations Fund rose by 21.8%, 6.9% ahead of its benchmark, the MSCI Europe Index. Funds focusing specifically on small- and medium-sized companies saw slower performance than in the previous 12 months. Nevertheless, the Swiss Small & MidCap Opportunities Fund registered a gain of 5.7%, 1.9% ahead of its benchmark, the SPI Extra Index. The US Small & MidCap Opportunities Fund was up by 6.8%, outperforming the S&P US Mid Small Cap Index, which was up by 5.7%. Funds with a focus on US equities generally performed well as the world s biggest economy continued to improve, with the US Growth Fund producing a positive absolute return of 10.1%, ahead of the Russell 1000 Growth Index, which was up 8.5%. The US Basic Value Fund rose by 2.9% but underperformed the Russell 1000 Value Index, which was up 3.5% over the period. Japanese funds had a strong six months after Prime Minister Shinzo Abe was re-elected and halted a second planned consumption tax rise. Large cap companies outperformed their small- and medium sized peers. The Japan Flexible Equity Fund returned 15.2%, around 5.8% behind its benchmark, the MSCI Japan Index, while the Japan Small & MidCap Opportunities Fund rose 11.2%, compared to 18.1% for the S&P Japan Mid Small Cap Index. Performance across emerging market funds was weak as investors fretted about the impact of a US interest rate rise on emerging economies. Portfolios investing in more defensive, income-focused assets performed better. The Asian Growth Leaders Fund gained 3.53% outperforming its benchmark, the MSCI AC Asia ex Japan Index, by 5.1%. The The information stated in this report is historical and not necessarily indicative of future performance. 4 BlackRock Global Funds (BGF)

7 BGF Investment Managers Report Performance overview 1 September 2014 to 28 February 2015 continued Asian Dragon Fund rose 0.2%, 1.8% ahead of its benchmark. The Asia Pacific Equity Income Fund rose 0.2%, 3.9% ahead of its benchmark. The India Fund was the top-performing fund in the emerging market range, continuing its strong run. The Fund rose by 12.8%, against the MSCI India Index benchmark performance of 5.1%. The Emerging Markets Fund, which has a broader exposure across the emerging markets investment universe, dipped 8.2%, in line with its MSCI Emerging Markets Index benchmark. The Emerging Markets Equity Income Fund fared slightly better, dropping 7.4%, but 0.9% ahead of its benchmark. The Latin American Fund fell 24.8%, 1.9% ahead of its benchmark, the MSCI Emerging Markets Latin America Index as markets sold off in line with weakness in commodities markets. The Emerging Europe Fund remained relatively flat over the period, rising just 0.5%. Nevertheless, this was substantially ahead of its benchmark, which fell 6.6%. Natural resources companies had a difficult six months, selling off in line with the falls in oil and other commodities. The New Energy Fund dipped 5.6%, against a flat performance from its benchmark, the broadly-based MSCI World Index. The World Mining Fund fell by 23.1% underperforming its benchmark, which was down by 21.1%. The World Agriculture Fund fell 0.4%, 1.5% behind its benchmark. The World Gold Fund also had a weak six months, falling 16.5%, though this was 2.6% ahead of its benchmark, the FTSE Gold Mines Index. Among specialist strategies, the World Healthscience Fund continued to perform very well with a return of 14.3%, outperforming its benchmark, the MSCI World Healthcare Index, which was up 10.6%. Mixed Asset Fund Performance The diversified Global Allocation Fund which invests in a mixture of fixed income securities, equities and cash gained 0.8% marginally ahead of its composite benchmark, which rose 0.2% (the benchmark comprises 36% S&P 500 Index, 24% FTSE World (ex-us) Index, 24% 5Yr US Treasury Note, 16% Citigroup Non-US World Govt Bond Index). Another of our multi-asset strategies, the Flexible Multi- Asset Fund, produced a positive absolute return of 10.3%, but this was marginally behind its composite benchmark, 50% MSCI World Index, 50% Citigroup World Government Bond Euro Hedged Index, which was up 11.7%. The Fund invests in an actively managed portfolio of global equities and bonds, with some tactical exposure to alternative assets and specialist markets. The Global Multi-Asset Income Fund rose by 0.7% over the period. The Fund combines the ability to allocate actively across a full range of asset classes and geographies at a topdown level with a focus on adding value through bottom-up security selection by specialist teams in each key asset class. Fixed Income Fund Performance The Global High Yield Bond Fund endured the volatility in high yield markets to end the period slightly lower, falling 0.4%. This was marginally ahead of its benchmark, the BoA ML Global High Yield Constrained Hedged Index, which fell 0.5%. The US Dollar High Yield Bond Fund dipped 0.9%, 0.8% less than its benchmark, the Barclays US High Yield 2% Constrained Index. The flagship Fixed Income Global Opportunities Fund also delivered a positive absolute return of 1.4%. Government bonds continued to be the strongest performing areas of fixed income, with yields moving lower for much of the period. However, there was a sharp reversal in February The Global Government Bond Fund rose 3.2%, 0.6% behind its benchmark. The US bond funds also saw the benefits of a stronger dollar. The US Dollar Core Bond Fund rose 2.1%, 0.2% behind its benchmark performance. The US Government Mortgage Fund rose 1.8%, underperforming its benchmark, which rose 2.3%. The Global Inflation Linked Bond Fund rose 2.2%, in line with its benchmark. Emerging market debt was largely flat over the six months, though trailed the broader global fixed income market. The Emerging Markets Local Currency Bond Fund was the worst performer, as the strength of the US dollar versus emerging market currencies exerted a drag on returns. The Fund fell 10.2%, 1.2% ahead of its benchmark, the JP Morgan GBI-EM Global Diversified Index. The Emerging Markets Bond Fund was up by 0.7%, outperforming its benchmark the JP Morgan Emerging Markets Bond Index which fell by 0.6%. The Emerging Markets Investment Grade Bond Fund fell by 6.7%, 1% behind its composite benchmark, (50% JPM GBI-EM Global Diversified Investment Grade RI, 50% JPM EMBI Global Diversified Investment Grade RI which fell by 5.7%). The Asian Local Bond Fund and Asian Tiger Bond Fund were both 0.8% ahead of their benchmarks, falling 0.3% and rising 3% respectively. The Renminbi Bond Fund rose 0.43%, 0.5% ahead of its benchmark. Outlook Recovery now looks well-established in the US and UK, with the lower oil price likely to provide an added boost. Quantitative easing is underway in the eurozone and economic data is tentatively improving in the region. Japan The information stated in this report is historical and not necessarily indicative of future performance. Interim Report and Unaudited Accounts 5

8 BGF Investment Managers Report Performance overview 1 September 2014 to 28 February 2015 continued appears to be out of recession, but growth estimates are still being revised lower as it struggles to shake off deflation. Concerns about China continue to prevail. The Government has revised its economic projections lower (from 7.5% to 7%) and investors remain undecided as to whether this is a prudent curbing of growth expectations, or whether the real situation is far worse. Other emerging markets divide into those benefiting from the lower oil price, such as India, and those that will continue to struggle in the face of lower commodities prices, such as Russia or Venezuela. Government bond markets are still pricing in a gloomy scenario, believing deflation to be a real risk. Certainly there are deflationary influences, but these may have been over-stated. As such, risks remain in certain parts of the bond markets. After five years of gains, stocks can no longer be considered cheap. However, they are by no means significantly ahead of historic norms and we believe they can still move higher given low interest rates, low inflation and a gradually improving economy. We are mindful of the potential volatility associated with a rise in US interest rates. Given the current negative yield environment that exists throughout Europe, custodian banks have either already begun or are beginning to apply negative interest rates to the cash balances held in custody. This has a negative knock on impact to the Company and is a situation we will continue to monitor closely. The information stated in this report is historical and not necessarily indicative of future performance. 6 BlackRock Global Funds (BGF)

9 BGF Investment Managers Report Performance overview 1 September 2014 to 28 February 2015 continued Disclosed in the table below are the performance returns for the Class A Non-Distributing Share Class for each fund, net of fees, which has been selected as a representative Share Class. Performance returns for any other Share Class can be made available on request. 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, as well as Key Investor Information Documents (KIIDs). Copies are available from Investor Services, the Transfer Agent, the Manager or any of the Representatives or Distributors. The BlackRock Global Funds range is only available for investment by non-us persons. It is not offered for sale or sold in the US, its territories or possessions. The Funds are not registered for sale to the public in all jurisdictions. Performance for the six month period ended 28 February Calendar Year Performance Performance for the 10 year period ended 28 February Launch Date ASEAN Leaders Fund 'A' non Dist () -8.67% 3.76% 1.73% 8/8/2012 MSCI South East Asia (Net) () -5.61% 6.22% -4.73% Asia Pacific Equity Income Fund 'A' Non Dist () 0.24% 4.60% 10.21% 26.58% 18/9/2009 MSCI AC AsiaPac ex Japan (Net) () -3.60% 2.82% 3.41% 22.31% Asian Dragon Fund 'A' Non Dist () 0.18% 5.72% 10.39% 26.81% 99.47% 2/1/1997 MSCI AC Asia ex Japan (Net) () b6-1.57% 4.80% 3.07% 22.36% % Asian Growth Leaders Fund 'A' Non Dist () 3.53% 9.46% 23.81% 31/10/2012 MSCI AC Asia ex Japan () -1.57% 4.80% 3.07% Asian Local Bond Fund 'A' Non Dist () -0.29% 3.51% -7.79% 30/4/2012 HSBC Asian Local Bond Index () -1.11% 4.36% -5.72% Asian Tiger Bond Fund 'A' Non Dist () 3.02% 8.19% -2.95% 14.16% 82.62% 2/2/1996 JPM Asian Credit Index (JACI) () 2.20% 8.32% -1.37% 14.27% 95.83% China Fund 'A' Non Dist () 11.24% 14.61% 4.21% 23.01% 24/6/2008 MSCI China 10/40 (Net) () 6.09% 8.38% 3.74% 22.96% Continental European Flexible Fund 'A' Non Dist (EUR) f2 (1) 19.42% 5.13% 24.17% 29.46% % 24/11/1986 FTSE World Europe ex UK (EUR) 15.83% 7.38% 22.04% 21.34% % Emerging Europe Fund 'A' Non Dist (EUR) 0.53% % -4.49% 18.93% 47.34% 29/12/1995 MSCI Emerging Europe (Net) (EUR) -6.88% % -8.60% 22.36% 25.14% MSCI EM Europe 10/40 (Net) (EUR) b4-6.64% % -8.49% 25.44% 47.16% Emerging Markets Bond Fund 'A' Non Dist () 0.70% 5.63% -5.15% 16.29% 98.24% 1/10/2004 JP Morgan Emg Mkts Bd Glb () -0.61% 7.43% -5.38% 18.54% % Emerging Markets Corporate Bond Fund 'A' Non Dist () -0.97% 2.74% 18/2/2013 JP Morgan Corporate Emg Mkts Bd Index Broad Diversified -0.26% 4.96% Emerging Markets Equity Income Fund 'A' Non Dist () -7.36% -2.93% 0.08% 27.92% 12/8/2011 MSCI Emerging Market (Net) () -8.30% -2.19% -2.60% 18.22% (1) Fund reopended to subscriptions, see Note 1, for further details. The information stated in this report is historical and not necessarily indicative of future performance. Interim Report and Unaudited Accounts 7

10 BGF Investment Managers Report Performance overview 1 September 2014 to 28 February 2015 continued Performance for the six month period ended 28 February Calendar Year Performance Performance for the 10 year period ended 28 February Launch Date Emerging Markets Fund 'A' Non Dist () -8.16% -2.07% -2.25% 17.49% 93.84% 30/11/1993 MSCI Emerging Market (Net) () -8.30% -2.19% -2.60% 18.22% % Emerging Markets Investment Grade Bond Fund 'A' non Dist () -6.72% -3.68% 18/2/ % JPM GBI-EM Global Diversified Investment Grade RI / 50% JPM -5.73% 1.43% EMBI Global Diversified Investment Grade RI Emerging Markets Local Currency Bond Fund 'A' Non Dist () % -6.92% -6.61% 7.42% 2/2/2007 JPM GBI-EM Global Diversified () % -5.72% -8.69% 7.45% Euro Bond Fund 'A' Non Dist (EUR) 5.34% 11.40% 2.69% 11.82% 67.02% 31/3/1994 Barclays Euro Agg 500mm+ Bd Ind (EUR) 4.79% 11.11% 2.16% 11.20% 63.69% Euro Corporate Bond Fund 'A' Non Dist (EUR) 3.50% 7.78% 2.22% 13.05% 31/7/2006 BoA ML EMU Corporate Bond Index (EUR) 3.14% 8.25% 2.39% 13.03% Euro Reserve Fund 'A' Non Dist (EUR) 0.00% 0.05% 0.00% -0.03% 24/7/ Day Euro LIBID (EUR) -0.08% -0.05% -0.07% 0.05% Euro Short Duration Bond Fund 'A' Non Dist (EUR) 1.02% 2.41% 1.92% 5.97% 37.01% 4/1/1999 Barclays Eur Agg 500mm 1-3yr (EUR) b % 1.79% 1.93% 4.99% 36.69% Euro-Markets Fund 'A' Non Dist (EUR) 16.21% -4.39% 27.03% 29.72% % 4/1/1999 MSCI EMU (Net) (EUR) 15.90% 4.32% 23.36% 19.31% 70.08% European Equity Income Fund 'A' Non Dist (EUR) 18.98% 12.12% 25.97% 16.02% 3/12/2010 MSCI Europe (Net) (EUR) 14.89% 6.84% 19.82% 17.29% European Focus Fund 'A' Non Dist (EUR) 18.66% 4.65% 21.66% 20.70% 14/10/2005 MSCI Europe (Net) (EUR) 14.89% 6.84% 19.82% 17.29% European Fund 'A' Non Dist (EUR) 18.20% 2.58% 21.78% 20.45% % 30/11/1993 MSCI Europe (Net) (EUR) 14.89% 6.84% 19.82% 17.29% 91.31% European Special Situations Fund 'A' Non Dist (EUR) 21.75% 6.80% 20.31% 24.12% % 14/10/2002 MSCI Europe Growth (Net) (EUR) 14.89% 6.19% 18.19% 17.87% 91.31% MSCI Europe (Net) (EUR) 14.89% 6.84% 19.82% 17.29% % European Value Fund 'A' Non Dist (EUR) 16.22% 5.04% 29.97% 23.15% % 8/1/1997 MSCI Europe Value (Net) (EUR) 10.93% 5.59% 21.35% 16.42% 63.45% MSCI Europe (Net) (EUR) 14.89% 6.84% 19.82% 17.29% 91.31% Fixed Income Global Opportunities Fund 'A' Non Dist () 1.37% 3.52% 2.73% 10.55% 31/1/2007 No Index. Absolute Return Product. Flexible Multi-Asset Fund 'A' Non Dist (EUR) 10.27% 10.33% 7.93% 9.54% 54.17% 4/1/1999 Composite (50%MSCIWnet/50CWGBIEurhd) (EUR) b % 13.84% 10.20% 9.10% 92.47% CWGBI Euro Hedged (EUR) 3.81% 8.36% 0.03% 4.36% MSCI World (Net) (EUR) 19.95% 19.50% 21.20% 14.05% % Global Allocation Fund 'A' Non Dist () 0.76% 1.60% 13.98% 8.02% 76.95% 3/1/1997 Composite (Global Allocation) () b % 4.17% 13.67% 10.80% 82.31% Global Corporate Bond Fund 'A' Non Dist () 2.16% 7.33% 0.34% 12.73% 19/10/2007 Barclays Gbl Corp Agg ( Hedged) () 2.71% 7.60% 0.07% 10.92% Global Dynamic Equity Fund 'A' Non Dist () 3.70% 3.87% 25.27% 11.42% 28/2/2006 Composite (S&P/ FTSE World ex US) () 2.14% 6.44% 26.30% 16.72% The information stated in this report is historical and not necessarily indicative of future performance. 8 BlackRock Global Funds (BGF)

11 BGF Investment Managers Report Performance overview 1 September 2014 to 28 February 2015 continued Performance for the six month period ended 28 February Calendar Year Performance Performance for the 10 year period ended 28 February Launch Date Global Enhanced Equity Yield Fund 'A' Non Dist () 0.83% 6.28% 12.06% 6.42% 13/10/2006 MSCI World Minimum Volatility (Net) () 6.10% 10.95% 16.90% 12.03% Global Equity Fund 'A' Non Dist () f3 1.98% -1.06% 23.44% 10.91% 44.71% 24/11/1986 MSCI AC World (Net) () b8 0.96% 4.16% 22.80% 16.13% 77.45% Global Equity Income Fund 'A' Non Dist () 0.41% 2.03% 18.44% 7.76% 12/11/2010 MSCI AC World (Net) () 0.96% 4.16% 22.80% 16.13% Global Government Bond Fund 'A' Non Dist () 3.19% 7.83% 1.08% 6.19% 47.63% 13/5/1987 Citigroup WGBI - Hedged () 3.79% 8.35% 0.21% 4.50% 57.71% Global High Yield Bond Fund 'A' Non Dist () -0.41% 1.63% 7.36% 16.35% 8/6/2007 BoA ML Glb High Yield Const Hedged () -0.48% 2.53% 7.10% 18.89% Global Inflation Linked Bond Fund 'A' Non Dist () 2.20% 8.17% -5.63% 5.62% 19/6/2009 Barclays World Government Inflation Linked () 2.19% 9.04% -5.51% 5.59% Global Multi-Asset Income Fund 'A' Non Dist () 0.67% 4.11% 5.74% 28/6/ % MSCI World (Net) () / 50% Barclays US Aggregate () 2.75% 6.34% 12.62% Global Opportunities Fund 'A' Non Dist () 2.54% -3.36% 29.46% 11.97% 78.24% 29/2/1996 MSCI World (Net) () 2.14% 4.94% 26.68% 15.83% 85.06% MSCI AC World (Net) () b9 0.96% 4.16% 22.80% 16.13% 90.92% Global SmallCap Fund 'A' Non Dist () -1.74% 0.67% 36.05% 14.24% % 4/11/1994 MSCI World () 2.37% 5.50% 27.37% 16.54% 95.49% MSCI AC World Small (Cap) () 0.24% 1.89% 30.38% 15.59% % India Fund 'A' Non Dist () 12.80% 39.02% -6.48% 23.36% 2/2/2005 MSCI India () 7.66% 23.87% -4.71% 25.04% Japan Flexible Equity Fund 'A' Non Dist (JPY) 15.17% 5.36% 61.00% 22.48% 24.57% 28/2/2005 MSCI Japan (Net) (JPY) 21.02% 9.48% 54.58% 21.57% 56.55% MSCI Japan Value (Net) (JPY) 20.18% 7.48% 47.67% 20.77% 81.64% Japan Small & MidCap Opportunities Fund 'A' Non Dist (JPY) 11.21% 10.34% 58.57% 20.74% 13.55% 13/5/1987 S&P Japan Mid Small Cap (JPY) b % 14.66% 54.11% 18.14% 60.01% Latin American Fund 'A' Non Dist () % -9.41% % 5.59% % 8/1/1997 MSCI EM Latin America (Net) () % % % 8.66% % MSCI EM Latin America 10/40 (Net) () % % % 9.58% % Natural Resources Growth & Income Fund 'A' Non Dist () % -8.46% 3.14% 3.24% 15/4/2011 S&P Global Natural Resources () % % 0.96% 6.60% New Energy Fund 'A' Non Dist () -5.55% -3.11% 26.61% 3.76% 18.87% 6/4/2001 MSCI World Energy (Net) () % % 18.12% 1.87% 57.62% North American Equity Income Fund 'A' Non Dist () 3.37% 8.88% 23.23% 9/3/2012 S&P 500 Composite (Net) () 5.80% 13.03% 32.39% Pacific Equity Fund 'A' Non Dist () -0.09% -1.15% 21.26% 21.98% 78.33% 5/8/1994 MSCI AC Asia Pacific (Net) () b5-0.24% 0.00% 12.19% 17.05% 69.20% MSCI Pacific (Net) () 0.52% -2.70% 18.27% 14.42% 59.85% The information stated in this report is historical and not necessarily indicative of future performance. Interim Report and Unaudited Accounts 9

12 BGF Investment Managers Report Performance overview 1 September 2014 to 28 February 2015 continued Performance for the six month period ended 28 February Calendar Year Performance Performance for the 10 year period ended 28 February Launch Date Renminbi Bond Fund 'A' Non Dist (CNH) 0.43% 3.78% 3.70% 7.43% 11/11/2011 HSBC Offshore Renminbi Bond (CNH) -0.11% 3.02% 4.01% 5.44% Renminbi 1 Month Deposit rate (CNH) 1.83% 2.23% 2.00% % Swiss Small & MidCap Opportunities Fund 'A' Non Dist (CHF) f1 5.67% 13.60% 33.90% 17.97% 8/1/2008 SWISS SPI EXTRA - TR Index (CHF) 3.73% 11.37% 27.66% 13.89% Swiss (SPI) Performance Index (CHF) 4.15% 13.00% 24.60% 17.72% United Kingdom Fund 'A' Non Dist (GBP) 5.89% -0.40% 19.01% 9.76% 91.75% 31/12/1985 FTSE All-Share (GBP) 4.09% 1.18% 20.81% 12.30% % US Basic Value Fund 'A' Non Dist () 2.87% 9.27% 37.56% 9.84% 77.98% 8/1/1997 Russell 1000 Value () b1 3.48% 13.45% 32.53% 17.51% % S&P 500 Composite () 5.80% 13.03% 32.39% 16.00% % US Dollar Core Bond Fund 'A' Non Dist () 2.13% 6.08% -1.38% 7.25% 45.32% 7/4/1989 Barclays US Aggregate () 2.25% 5.97% -2.02% 4.21% 60.17% US Dollar High Yield Bond Fund 'A' Non Dist () -0.90% 1.60% 7.02% 15.04% 74.76% 29/10/1993 Barclays 2% Const US$ High Yield () b % 2.46% 7.44% 15.78% % US Dollar Reserve Fund 'A' Non Dist () 0.02% 0.01% 0.01% -0.04% 7.54% 30/11/ Day LIBID () b % 0.00% 0.03% 0.06% 20.26% US Dollar Short Duration Bond Fund 'A' Non Dist () 0.16% 1.11% 0.80% 4.41% 22.56% 31/10/2002 BoA ML 1-3 Year US Corp & Govt () 0.44% 0.78% 0.70% 1.48% 33.34% US Flexible Equity Fund 'A' Non Dist () 5.34% 12.02% 32.80% 10.23% 73.25% 31/10/2002 Russell 1000 () 6.00% 13.24% 33.11% 16.42% % S&P 500 Composite (Gross) () 5.80% 13.03% 32.39% 16.00% % US Government Mortgage Fund 'A' Non Dist () 1.82% 5.59% -2.09% 3.45% 45.15% 2/8/1985 Citigroup Mortgage () 2.33% 6.12% -1.52% 2.60% 60.55% US Growth Fund 'A' Non Dist () 10.07% 9.23% 33.37% 10.32% 62.76% 30/4/1999 Russell 1000 Growth () b2 8.46% 13.05% 33.48% 15.26% % S&P 500 Composite () 6.12% 13.69% 32.39% 16.00% % US Small & MidCap Opportunities Fund 'A' Non Dist () 6.79% 11.75% 39.86% 6.53% % 13/5/1987 S&P US Mid Small Cap () b3 5.73% 10.26% 37.09% 16.92% % S&P 500 Composite () 5.80% 13.03% 32.39% 16.00% % World Agriculture Fund 'A' Non Dist () -0.37% 3.02% 8.47% 10.99% 9/2/2010 DAX Global AgriBusiness Index () 1.09% 1.55% 6.40% 13.22% World Bond Fund 'A' Non Dist () 2.68% 7.15% 0.33% 6.84% 42.07% 4/9/1985 Barclays Glb Agg Hgd () b % 7.59% -0.14% 5.72% 52.27% World Energy Fund 'A' Non Dist () % % 16.89% -7.73% 24.90% 6/4/2001 MSCI World Energy (Net) () % % 18.12% 1.87% 57.62% World Financials Fund 'A' Non Dist () 2.36% 0.83% 27.86% 32.11% 2.03% 3/3/2000 MSCI ACWI World Financials Index (Net) () -0.99% 4.17% 27.33% 29.36% 13.58% World Gold Fund 'A' Non Dist () % -5.19% % -8.16% 18.70% 30/12/1994 FTSE Gold Mines (Cap) () % % % % % World Healthscience Fund 'A' Non Dist () 14.28% 24.40% 43.09% 16.89% % 6/4/2001 MSCI World Healthcare (Net) () 10.62% 18.10% 36.27% 17.54% % The information stated in this report is historical and not necessarily indicative of future performance. 10 BlackRock Global Funds (BGF)

13 BGF Investment Managers Report Performance overview 1 September 2014 to 28 February 2015 continued Performance for the six month period ended 28 February Calendar Year Performance Performance for the 10 year period ended 28 February Launch Date World Mining Fund 'A' Non Dist () % % % -3.09% 14.02% 24/3/1997 Euromoney Global Mining Index () b % % % -0.65% 22.98% World Real Estate Securities Fund 'A' Non Dist () 7.46% 20.41% 25/2/2013 FTSE EPRA/NAREIT Developed Index 5.45% 15.02% World Technology Fund 'A' Non Dist () 7.26% 8.13% 28.30% 10.96% 64.62% 3/3/1995 MSCI AC World Info Tech (Net) () b % 15.20% 26.51% 15.32% % Fund & Benchmark Information Unless otherwise stated, performance is shown on a NAV price basis with income reinvested. Fund performance figures are calculated net of annual fees. All fund and benchmark information is recorded in its base currency and is converted into the appropriate currency. f1 Prior to 1 August 2008 the fund was called BLK IFCP Swiss Opportunities Fund. The previous performance track record has been retained by the BGF fund and adjusted to reflect the change in fees. f2 Prior to 22 July 2005, this fund was known as MLOST European. Past performance of MLOST European has been maintained but reflects revised base ccy and charging structure of new BGF sub-fund. f3 Prior to 22 July 2005, this fund was known as MLOST Global. Past performance of MLOST Global has been maintained but reflects revised base ccy & charging structure of new BGF sub-fund. b1 Prior to 1 October 2009 the benchmark was the S&P 500 Citigroup Value index. b2 Prior to 1 April 2006 the benchmark was the Citigroup 500 Barra Growth index. Prior to 1 January 2006, the benchmark was S&P 500 Barra Growth. b3 Prior to 1 October 2008 the benchmark was the S&P Citigroup US Extended Market Index. b4 Prior to 1 October 2006 the benchmark was the MSCI Emerging Europe (net). b5 Prior to 31 August 2008 the benchmark was the Composite (BGF Pacific) net index. b6 Prior to 9 April 2007 the benchmark was MSCI AC Far East ex Japan. b7 Prior to 1 October 2008 the benchmark was the S&P Citigroup Japan Extended Market Index. b8 Prior to the 1 October 2009 the benchmark was the MSCI World Index. b9 Prior to the 1 January 2010 the benchmark was the S&P Global Broad Market Index (BMI). b10 Prior to the 1 January 2010 the benchmark was the MSCI World Information Technology Index. b11 Composite is 36% S&P500 Comp, 24% FTSE World ex US, 24% ML US Treasury 5yr notes, 16% CWGBI non-us. b12 Benchmark is 50% MSCIW net/50% Citigroup Wld Govt Bd (Euro hdg). b13 Prior to 1 January 2008, the benchmark was Lehman Glb Agg 500MM Hdg, prior to 1 July 2007 benchmark was Lehman Glb Agg 500MM. b14 Prior to 1 October 2006 the benchmark was the CSFB High Yield Bond Index. b15 Prior to 31 May 2010 the benchmark was ML 3M Constant Mat LIBOR. b16 Prior to 30 June 2006 the benchmark was the Citigroup EMU GBI 1-3 yrs. b17 The benchmark changed name from the HSBC Global Mining (Cap) on 1 October The information stated in this report is historical and not necessarily indicative of future performance. Interim Report and Unaudited Accounts 11

14 Board of Directors (1)(2) Management and Administration continued Nicholas C. D. Hall (Chairman) Frank P. Le Feuvre Alexander C. Hoctor-Duncan Francine Keiser Geoffrey D. Radcliffe Bruno Rovelli Custodian The Bank of New York Mellon (International) Limited Luxembourg Branch 2-4, rue Eugène Ruppert L-2453 Luxembourg Grand Duchy of Luxembourg (1) All Directors are non-executive Directors (2) Alexander C. Hoctor-Duncan, Frank P. Le Feuvre, Geoffrey D. Radcliffe and Bruno Rovelli are employees of the BlackRock Group (of which the Management Company, Investment Advisers and Principal Distributor are part), and Nicholas C. D. Hall is a former employee of the BlackRock Group. Francine Keiser is an independent Director. Management and Administration Management Company BlackRock (Luxembourg) S.A. 35A, Avenue John F. Kennedy, L-1855 Luxembourg, Grand Duchy of Luxembourg Investment Advisers BlackRock Financial Management, Inc. Park Avenue Plaza, 55 East 52 nd Street, New York, NY 10055, USA BlackRock Investment Management, LLC 100 Bellevue Parkway, Wilmington, Delaware 19809, USA Fund Accountant The Bank of New York Mellon (International) Limited Luxembourg Branch 2-4, rue Eugène Ruppert L-2453 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 Independent Auditor PricewaterhouseCoopers, Société coopérative 2, rue Gerhard Mercator B.P. 1443, L-1014 Luxembourg Grand Duchy of Luxembourg Legal Advisers Linklaters LLP 35 avenue John F. Kennedy, L-1855 Luxembourg Grand Duchy of Luxembourg BlackRock Investment Management (UK) Limited 12 Throgmorton Avenue, London EC2N 2DL, United Kingdom BlackRock (Singapore) Limited # Twenty Anson, 20 Anson Road, Singapore, BlackRock Institutional Trust Company N.A., 400 Howard Street, San Francisco CA 94105, USA Sub-Investment Advisers BlackRock Asset Management North Asia Limited 16/F Cheung Kong Center, 2 Queen s Road Central, Hong Kong BlackRock Japan Co. Limited Marunouchi, Chiyoda-ku, Tokyo , Japan BlackRock Investment Management (Australia) Limited Level 18, 120 Collins Street, Melbourne VIC, Australia Principal Distributor BlackRock (Channel Islands) Limited One Waverley Place, Union Street, St. Helier, Jersey JE1 0BR Channel Islands Listing Agent J.P. Morgan Bank Luxembourg S.A. 6C, route de Trèves, L-2633 Senningerberg Grand Duchy of Luxembourg Paying Agents A list of Paying Agents is to be found on page 465. Registered Office 2-4, rue Eugène Ruppert L-2453 Luxembourg Grand Duchy of Luxembourg 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: investor.services@blackrock.com 12 BlackRock Global Funds (BGF)

15 Statement of Net Assets as at 28 February 2015 Fund Name Note BlackRock Global Funds Combined ASEAN Leaders Fund Asia Pacific Equity Income Fund Asian Dragon Fund Asian Growth Leaders Fund Asian Local Bond Fund Asian Tiger Bond Fund China Fund Continental European Flexible Fund (1) US$ US$ US$ US$ US$ US$ US$ US$ US$ Emerging Europe Fund Emerging Markets Bond Fund Assets Securities portfolio at cost 109,853,317, ,428, ,302,882 1,181,530, ,554,922 20,516, ,790,769 1,298,369,895 1,278,084,566 1,057,725,660 1,042,970,271 appreciation/(depreciation) 6,278,230,280 4,785,417 50,633, ,054,072 18,974,217 (263,089) 8,567, ,682, ,735,330 (27,834,852) 26,257,297 Securities portfolio at market value 2(a) 116,131,547, ,214, ,935,976 1,300,584, ,529,139 20,253, ,358,239 1,438,052,406 1,637,819,896 1,029,890,808 1,069,227,568 Cash at bank 2(a) 2,340,425, ,729 4,735, ,005 1,491,590 3,645,588 57,334,755 11,454,149 4,069,331 8,750, ,137,282 Due from broker 4,214,939 67,000 2,449,000 Interest and dividends receivable 2(a) 525,622,498 2,239,873 2,687, , ,868 13,200,531 2, ,543 2,078 13,606,655 Receivable for investments sold 2(a) 4,228,264,292 7,077,082 2,556, , , ,862 13,977,171 3,366,794 Receivable for Fund shares subscribed 2(a) 755,911, ,766 1,939,926 5,852,820 6,174,758 16,882,620 13,550,116 9,917,243 2,577,586 23,801,392 appreciation on: Open exchange traded futures contracts 2(c) 27,072, ,310 11, , ,828 1,125, ,940 Open forward foreign exchange contracts 2(c) 53,095,436 4,114 3,891,424 1,046,716 Market value of swaps 2(c) 105,749,688 5,147 79, ,595 Market value of purchased options/swaptions 2(c) 425,853, , , ,908 1,474,254 Other assets 2(a,c) 10,803,495 22,162 12, , , ,568 6,500 Total assets 124,608,561, ,181, ,110,482 1,311,226, ,015,713 24,320, ,139,477 1,465,631,236 1,672,502,516 1,045,641,413 1,247,712,432 Liabilities Cash owed to bank 141,821, ,902 46,324 2,187,428 1,134,688 1,932, ,053 28,164 Due to broker 339,641, , ,000 Income distribution payable 2(a) 32,342, ,602 29,681 1,472, ,012 Payable for investments purchased 2(a) 4,428,212,627 4,710,195 2,409,868 18,688,987 6,619, ,784 62,674 9,086,126 9,857, ,989 Payable for Fund shares redeemed 2(a) 489,421,359 28,526 2,972,771 11,647,761 32,850 2,267,723 18,314,537 3,673,746 2,589,846 2,608,014 depreciation on: Open exchange traded futures contracts 2(c) 70,722,988 Open forward foreign exchange contracts 2(c) 124,423,789 2,243,685 9,311 24, , ,609 4,323,068 Market value of swaps 2(c) 7,929,921 Market value of written options/swaptions 2(c) 170,876,299 Other liabilities 5,6,7,8 156,711, ,340 1,196,385 1,541, ,381 42, ,552 2,053,991 1,953,681 2,063, ,691 Total liabilities 5,962,103,376 4,887,061 9,829,213 31,933,909 7,042,260 2,439,228 6,458,982 22,582,086 14,713,553 14,626,708 9,626,938 Total net assets 118,646,457, ,294, ,281,269 1,279,293, ,973,453 21,881, ,680,495 1,443,049,150 1,657,788,963 1,031,014,705 1,238,085,494 (1) Fund reopened to subscriptions, see Note 1, for further details. The notes on pages 453 to 464 form an integral part of these financial statements. Interim Report and Unaudited Accounts 13

16 Statement of Net Assets as at 28 February 2015 continued Fund Name Note Emerging Markets Corporate Bond Fund Emerging Markets Equity Income Fund Emerging Markets Fund Emerging Markets Investment Grade Bond Fund Emerging Markets Local Currency Bond Fund Euro Bond Fund Euro Corporate Bond Fund Euro Reserve Fund Euro Short Duration Bond Fund US$ US$ US$ US$ US$ Euro- Markets Fund European Equity Income Fund Assets Securities portfolio at cost 97,866, ,110, ,571,739 37,845, ,215,592 3,810,909, ,351, ,083,815 6,364,072,938 2,823,199,049 2,029,600,375 appreciation/(depreciation) 1,707,408 8,952,927 61,996,769 (1,823,164) (67,953,294) 235,641,206 22,804,904 6, ,702, ,147, ,260,008 Securities portfolio at market value 2(a) 99,573, ,063, ,568,508 36,021, ,262,298 4,046,550, ,156, ,089,903 6,574,775,784 3,274,346,497 2,348,860,383 Cash at bank 2(a) 12,909,918 10,396,200 9,565,984 2,396,591 32,278,323 24,918, ,619 2,275,356 66,789, ,957,003 Due from broker 598,000 Interest and dividends receivable 2(a) 1,229,184 1,031,524 1,545, ,128 13,553,154 40,069,673 6,098, ,812 64,186,282 3,805 3,242,700 Receivable for investments sold 2(a) 726,135 6,380,168 4,861, ,768 16,255,704 6,095,368 10,404,937 58,138, ,751 Receivable for Fund shares subscribed 2(a) 19, ,028 1,160, ,404 23,230,594 5,942, ,011 37,237,710 11,199,355 35,572,700 appreciation on: Open exchange traded futures contracts 2(c) 113,309 Open forward foreign exchange contracts 2(c) ,311 7,836,328 Market value of swaps 2(c) 25,393 3,610,085 6,129,966 Market value of purchased options/swaptions 2(c) 44,563 6,142 76,386 Other assets 2(a,c) 511 8, , ,449 51,112 1,107, ,342 Total assets 114,458, ,366, ,865,782 39,277, ,358,192 4,144,519, ,601, ,885,194 6,760,198,278 3,345,731,167 2,409,350,207 Liabilities Cash owed to bank 5 49,555 1,328, ,565 39, ,346 38,987,766 Due to broker 6,053,000 10,084,000 Income distribution payable 2(a) 26 9, ,235 22,180 4,658 57,342 1,524,230 Payable for investments purchased 2(a) 2,516,780 4,999,976 3,283, ,837 28,392,528 85,041,706 11,375,441 2,999,923 84,835,873 94,706,229 31,514,631 Payable for Fund shares redeemed 2(a) 10,350 55,105 4,218,105 2,235,501 14,658,262 1,553, ,496 36,609,849 19,694,392 6,002,784 depreciation on: Open exchange traded futures contracts 2(c) 19,781 1,823,631 21,274 25,983,853 Open forward foreign exchange contracts 2(c) 77, , ,745 24,006,813 5,095,383 47,928,475 Market value of swaps 2(c) 42, ,840 Market value of written options/swaptions 2(c) Other liabilities 5,6,7,8 85, ,236 1,057,049 43,092 1,640,107 3,078, ,816 71,955 5,395,146 3,921,928 2,953,099 Total liabilities 2,733,620 5,708,332 8,558, ,265 34,734, ,948,467 19,464,028 3,575, ,148, ,310,315 41,994,744 Total net assets 111,725, ,658, ,306,961 38,361, ,623,584 4,009,570, ,137, ,309,820 6,549,049,394 3,188,420,852 2,367,355, BlackRock Global Funds (BGF)

17 Statement of Net Assets as at 28 February 2015 continued Fund Name Note European Focus Fund European Fund European Special Situations Fund European Value Fund Fixed Income Global Opportunities Fund Flexible Multi-Asset Fund US$ US$ US$ US$ US$ US$ Global Allocation Fund Global Corporate Bond Fund Global Dynamic Equity Fund Global Enhanced Equity Yield Fund Global Equity Fund Assets Securities portfolio at cost 1,967,860,408 4,044,255, ,115,311 2,254,174,545 5,241,426, ,144,357 21,593,505,164 1,529,901, ,057, ,196, ,758,418 appreciation/(depreciation) 446,471, ,660, ,095, ,262,459 (75,066,846) 21,691,873 1,505,288,984 (3,292,408) 110,726,161 15,401,238 9,814,226 Securities portfolio at market value 2(a) 2,414,332,184 4,918,915,666 1,122,210,361 2,709,437,004 5,166,360, ,836,230 23,098,794,148 1,526,609,228 1,016,783, ,597, ,572,644 Cash at bank 2(a) 7,289,245 33,285,475 20,918,156 6,630, ,363,908 55,880, ,780,058 11,072,282 12,010,741 26,825,466 3,710,300 Due from broker 1,030,000 Interest and dividends receivable 2(a) 3,856,860 7,181,078 1,620,433 4,280,498 55,466,488 1,118,178 59,932,151 17,571,608 1,270, , ,445 Receivable for investments sold 2(a) 1,005,531 54,894,841 8,092,447 13,189,277 3,483,010,791* 1,814, ,734,158* 2,257,013* 10,407,869 27, ,061 Receivable for Fund shares subscribed 2(a) 16,250,344 39,119,181 3,597,566 49,020,932 43,123,605 2,833,473 89,947,826 6,697,940 2,721,463 4,894,518 1,145,686 appreciation on: Open exchange traded futures contracts 2(c) 8,556, , ,138 2,499,862 1,835,106 Open forward foreign exchange contracts 2(c) 902,581 8,765, ,035 2,062,601 1,429,658 2,247,936 3,003,656 1,801,356 Market value of swaps 2(c) 17,205,832 3,824,222 25,243, ,782 Market value of purchased options/swaptions 2(c) 60,729, , ,464, ,629 21,392,584 Other assets 2(a,c) 1,170,457 1,593, , ,928 22,479 2,036,262 5, ,681 41,622 64,121 Total assets 2,444,807,202 5,072,312,318 1,156,979,289 2,784,816,290 9,403,689, ,211,690 24,030,179,846 1,569,196,055 1,069,404, ,128, ,097,257 Liabilities Cash owed to bank 47,076,112 13,396, ,602 5,421, ,113 1,990, ,337 Due to broker 37,699,443 3,411, ,686,108 15,661 12,600,697 Income distribution payable 2(a) 322, , ,844 Payable for investments purchased 2(a) 11,820,346 60,098,064 20,355,980 46,251,200 3,048,364,049* 2,513, ,191,111* 8,040,957* 4,518, ,077 Payable for Fund shares redeemed 2(a) 4,807,277 9,605,609 4,755,596 5,018,340 7,258,067 1,685,437 87,270, ,699 4,587,730 5,172,263 2,359,443 depreciation on: Open exchange traded futures contracts 2(c) 971,844 6,854,695 Open forward foreign exchange contracts 2(c) 333,941 3, ,305 Market value of swaps 2(c) 4,782,141 Market value of written options/swaptions 2(c) 51,724,455 55, ,276,570 6,719,733 2,815,874 Other liabilities 5,6,7,8 3,324,049 5,944,412 1,525,181 3,213,288 15,985, ,639 30,509, ,003 1,434, , ,239 Total liabilities 19,951,672 75,648,085 26,636, ,558,940 3,175,721,800 8,770, ,210,392 15,719,976 31,852,113 9,502,878 3,652,064 Total net assets 2,424,855,530 4,996,664,233 1,130,342,532 2,683,257,350 6,227,967, ,441,317 23,329,969,454 1,553,476,079 1,037,551, ,625, ,445,193 * Includes TBAs, see Note 2, for further details. The notes on pages 453 to 464 form an integral part of these financial statements. Interim Report and Unaudited Accounts 15

18 Statement of Net Assets as at 28 February 2015 continued Fund Name Note Global Equity Income Fund Global Government Bond Fund Global High Yield Bond Fund Global Inflation Linked Bond Fund Global Multi-Asset Income Fund Global Opportunities Fund Global SmallCap Fund India Fund Japan Flexible Equity Fund Japan Small & MidCap Opportunities Fund US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ Latin American Fund Natural Resources Growth & Income Fund Assets Securities portfolio at cost 2,636,689, ,048,191 2,078,652, ,924,429 1,822,072, ,801, ,153, ,881,574 23,375,596,913 64,599,358,310 1,772,814,813 10,529,953 appreciation/(depreciation) 315,383,504 (42,616,960) (33,463,701) 4,393,609 8,957,100 16,797,605 35,314, ,385,101 4,926,224,877 10,972,457,790 4,812,850 (384,366) Securities portfolio at market value 2(a) 2,952,073, ,431,231 2,045,188, ,318,038 1,831,029, ,599, ,467, ,266,675 28,301,821,790 75,571,816,100 1,777,627,663 10,145,587 Cash at bank 2(a) 36,293,655 13,971,166 42,680,827 4,586, ,460,949 2,884,388 3,651,145 31,667, ,684,268 1,596,563,108 48,462, ,858 Due from broker Interest and dividends receivable 2(a) 9,170,007 3,978,892 32,773, ,853 13,107, , ,538 8,762 22,158,857 97,975,796 7,992,583 25,233 Receivable for investments sold 2(a) 4,727,088 6,308,773 8,452, ,479 9,990,257 13, ,047,907 Receivable for Fund shares subscribed 2(a) 11,596,009 3,111,502 18,242, ,226 55,489, , ,696 95,518, ,663,018 5,284, ,291 appreciation on: Open exchange traded futures contracts 2(c) 868,821 8,168, ,691 Open forward foreign exchange contracts 2(c) 176,947 19,800,756 Market value of swaps 2(c) 9,870,692 9,964,523 Market value of purchased options/swaptions 2(c) 42, ,424 Other assets 2(a,c) 85,901 1,023 45,049 28,381 50, ,868 Total assets 3,009,218, ,308,963 2,155,065, ,763,451 2,106,717, ,016, ,036, ,084,819 28,800,197,152 77,735,866,685 1,839,367,381 10,638,837 Liabilities Cash owed to bank 2,568, ,882,328 4, , Due to broker 8,211,145 10,709,355 Income distribution payable 2(a) 1,668,747 30,795 4,859,744 5,634,644 Payable for investments purchased 2(a) 2,848,952 10,340,397 4,931,007 3,104 35,035, ,145 3,369,973 2,086, ,836, ,048 Payable for Fund shares redeemed 2(a) 8,745,696 8,212,679 4,528,778 2,050,836 1,782, ,898 9,239,206 5,399, ,187, ,384,764 6,832, depreciation on: Open exchange traded futures contracts 2(c) 9,498, ,141 Open forward foreign exchange contracts 2(c) 3,537,822 3,329,850 2,261,652 5,146,415 67, ,294,127 32,327 19,482 Market value of swaps 2(c) 412, ,250 Market value of written options/swaptions 2(c) 270,344 7,114 Other liabilities 5,6,7,8 4,050, ,356 2,681, ,830 2,911, , ,044 1,100,620 39,513,279 86,267,131 3,182,389 22,512 Total liabilities 20,851,406 22,220,238 38,040,533 9,651,485 61,223, ,950 13,408,524 8,586, ,996,660 1,138,565,662 10,046, ,231 Total net assets 2,988,367, ,088,725 2,117,024, ,111,966 2,045,494, ,041, ,628, ,498,250 28,628,200,492 76,597,301,023 1,829,320,414 10,263, BlackRock Global Funds (BGF)

19 Statement of Net Assets as at 28 February 2015 continued Fund Name Note New Energy Fund North American Equity Income Fund Pacific Equity Fund Renminbi Bond Fund Swiss Small & MidCap Opportunities Fund United Kingdom Fund US Basic Value Fund US Dollar Core Bond Fund US Dollar High Yield Bond Fund US Dollar Reserve Fund US Dollar Short Duration Bond Fund US$ US$ US$ CNH CHF US$ US$ US$ US$ US$ US$ US Flexible Equity Fund Assets Securities portfolio at cost 1,079,971,711 77,653, ,853, ,429, ,882, ,545,211 1,534,912, ,648,860 4,976,610, ,305,276 1,393,323, ,721,907 appreciation/(depreciation) 19,240,848 18,718,585 20,671,876 (15,475,892) 147,167,198 42,577, ,150,800 1,606,578 49,171,604 16,439 (14,387,642) 233,620,525 Securities portfolio at market value 2(a) 1,099,212,559 96,372, ,525, ,953, ,049, ,122,915 1,864,063, ,255,438 5,025,782, ,321,715 1,378,935,541 1,016,342,432 Cash at bank 2(a) 3,735,451 4,434,339 1,022,594 10,108,946 39,042, ,117 12,600,878 46,722, ,522,971 4,449,197 52,697,629 10,302,257 Due from broker Interest and dividends receivable 2(a) 1,439, , ,172 8,660, ,925 2,455,068 1,898,526 82,275,928 47,988 5,343,770 1,318,621 Receivable for investments sold 2(a) 14,967, ,142 43,990 1,990,721 15,208,781 61,951,596* 28,727,700 11,570,277* 7,253,649 Receivable for Fund shares subscribed 2(a) 1,123, ,862 2,383, ,326 1,186, ,370 4,667,290 10,672,040 41,937,442 6,449,511 7,011,760 1,631,453 appreciation on: Open exchange traded futures contracts 2(c) Open forward foreign exchange contracts 2(c) 417, ,901 8,825, ,067 1,418,378 Market value of swaps 2(c) 439,164 26,823,484 Market value of purchased options/swaptions 2(c) 5,994 Other assets 2(a,c) 140, , ,427 3,442 Total assets 1,120,619, ,825, ,266, ,551, ,279, ,517,048 1,898,995, ,569,397 5,429,895, ,604,905 1,456,977,355 1,036,851,854 Liabilities Cash owed to bank ,425 Due to broker 531,348 28,631,000 Income distribution payable 2(a) 554, ,932 14,358,655 56,591 Payable for investments purchased 2(a) 17,527,600 1,495, ,967,272 11,190, ,222,895* 30,181,638 66,271,610* 4,201,064 Payable for Fund shares redeemed 2(a) 3,480,385 39,101 1,075,836 3,755,838 1,371,385 1,263,069 8,454,654 6,145,964 15,111,459 14,085,619 3,927,459 3,258,524 depreciation on: Open exchange traded futures contracts 2(c) 78,219 31,568 21,723,899 3,776 Open forward foreign exchange contracts 2(c) 3,396 1,219, ,103 Market value of swaps 2(c) 949, ,408 Market value of written options/swaptions 2(c) Other liabilities 5,6,7,8 1,840, , , , , ,126 2,398, ,740 6,861, ,364 1,013,611 1,274,564 Total liabilities 22,848,920 1,711,504 1,401,357 6,167,282 5,204,642 1,547,534 23,262, ,809, ,868,382 14,305,983 71,950,880 9,670,255 Total net assets 1,097,770, ,113, ,864, ,384, ,074, ,969,514 1,875,732, ,759,950 5,313,027, ,298,922 1,385,026,475 1,027,181,599 * Includes TBAs, see Note 2, for further details. The notes on pages 453 to 464 form an integral part of these financial statements. Interim Report and Unaudited Accounts 17

20 Statement of Net Assets as at 28 February 2015 continued Fund Name Note US Government Mortgage Fund US Growth Fund US Small & MidCap Opportunities Fund World Agriculture Fund World Bond Fund World Energy Fund World Financials Fund World Gold Fund World Healthscience Fund World Mining Fund World Real Estate Securities Fund US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ World Technology Fund Assets Securities portfolio at cost 136,734, ,329, ,985, ,518,931 1,498,467,824 2,121,772, ,251,795 3,685,777,100 2,735,049,575 6,771,760,743 6,534, ,486,538 appreciation/(depreciation) (655,201) 68,071,500 92,075,911 15,424,701 (68,405,324) (169,302,103) 40,727,018 (491,647,387) 735,195,277 (1,408,156,074) 707,692 22,282,158 Securities portfolio at market value 2(a) 136,078, ,401, ,061, ,943,632 1,430,062,500 1,952,470, ,978,813 3,194,129,713 3,470,244,852 5,363,604,669 7,242, ,768,696 Cash at bank 2(a) 18,444,384 2,927,155 12,945, ,070 16,280,561 10,157,931 10,109,934 7,466,602 32,269,064 11,365, ,782 4,264 Due from broker Interest and dividends receivable 2(a) 679, , , ,869 9,307,490 8,006, , ,343 4,065, ,067 1, ,831 Receivable for investments sold 2(a) 78,828,646* 3,953,841 31,345,519* 20,068,324 11,550,246 13,583,679 38,872 3,645,864 Receivable for Fund shares subscribed 2(a) 569, ,713 2,514, ,877 1,756,760 21,329,422 1,877,109 19,787,346 31,482,593 12,989,957 19,800 1,316,413 appreciation on: Open exchange traded futures contracts 2(c) 432,812 Open forward foreign exchange contracts 2(c) 686 4,322,774 Market value of swaps 2(c) Market value of purchased options/swaptions 2(c) 97,156 Other assets 2(a,c) 1, ,077 2,264 1,007, ,167 7, ,796 17,706 Total assets 234,600, ,231, ,882, ,960,525 1,493,607,836 2,013,040, ,022,100 3,221,884,004 3,551,654,127 5,388,591,900 7,446, ,916,774 Liabilities Cash owed to bank 2 3,886 7,910, ,421 Due to broker Income distribution payable 2(a) 161,389 22,142 Payable for investments purchased 2(a) 103,754,775* 2,874,201 35,242,574* 24,820,451 18,931,890 1,669,533 2,095, ,361 2,767,702 Payable for Fund shares redeemed 2(a) 1,057,227 2,716,920 4,290, ,102 4,825,625 5,900,324 5,713,096 14,688,957 42,465,367 17,670,070 1,155 2,117,710 depreciation on: Open exchange traded futures contracts 2(c) 31,503 Open forward foreign exchange contracts 2(c) 138, ,699 1,369,034 2,662,594 5,831,346 2,168,368 10,676 Market value of swaps 2(c) 6, ,334 Market value of written options/swaptions 2(c) Other liabilities 5,6,7,8 428, , , , ,505 3,113, ,059 5,012,340 4,472,649 8,765,903 17, ,271 Total liabilities 105,439,946 6,247,889 5,009, ,179 49,066,898 35,203,205 25,311,045 24,033,429 52,769,362 30,700, ,916 5,554,104 Total net assets 129,160, ,983, ,873, ,320,346 1,444,540,938 1,977,837, ,711,055 3,197,850,575 3,498,884,765 5,357,891,810 7,312, ,362,670 * Includes TBAs, see Note 2, for further details. 18 BlackRock Global Funds (BGF)