BlackRock Asset Management Deutschland AG Semi-annual report as at 31 October 2014 for the investment fund ishares Dow Jones Global Titans 50 UCITS ETF (DE)
Contents Notice and note on licences Additional information for investors in Austria Report of the Management Board Semi-annual report for ishares Dow Jones Global Titans 50 UCITS ETF (DE) Management Company and Depository 3 3 4 5 10 2 of 11
Note The investment funds named in this report are governed by German law. Fund units are bought on the basis of the currently valid prospectus and management regulations, supplemented by the most recent annual report concerned and also by the semi-annual report if such a report exists that is more recent than the last annual report. The financial statements were drawn up in German and translated into English. Only the German version is legally binding. Note on Licences Legal Information The German ishares funds mentioned in this document are investment funds subject to the German Investment Code. These funds are managed by BlackRock Asset Management Deutschland AG and are regulated by the Federal Financial Supervisory Authority (BaFin). For Investors in Germany The sales prospectuses of the funds issued in Germany are available free of charge electronically and in hard copy from BlackRock Asset Management Deutschland AG, Max-Joseph-Str. 6, D-80333 Munich, Tel: +49 (0) 89 42729 5858, Fax: +49 (0) 89 42729 5958, info@ishares.de. Risk Warnings The value of investments in all the ishares funds may fluctuate, and investors may not get back the amount invested. Past performance may not be repeated and is no guarantee of future returns. Investment risks from market and currency losses as well as high volatility and concentration risk cannot be excluded. Index Disclaimers of Liability 'Dow Jones' and 'Dow Jones Global Titans 50' are trademarks and/or service marks of Dow Jones & Company, Inc. and have been licensed to BlackRock Asset Management Deutschland AG for specific purposes. The fund ishares Dow Jones Global Titans 50 (DE) from BlackRock Asset Management Deutschland AG is not supported, sold or promoted by Dow Jones, and Dow Jones does not make any representations as to the advisability of trading in this product. ishares is a registered trademark of BlackRock Institutional Trust Company, N.A. 2014 BlackRock Asset Management Deutschland AG. All rights reserved. Additional Information for Investors in Austria The sales prospectuses, including contractual terms and conditions, financial statements and semi-annual reports can be obtained, without charge, at the relevant paying agent and distributor. Paying Agent and Distributor in Austria: UniCredit Bank Austria AG Schottengasse 6-8 1010 Vienna, Austria Tax Representative in Austria: Ernst & Young Wagramer Str. 19 1220 Vienna, Austria 3 of 11
Report of the Management Board Dear Investors, BlackRock Asset Management Deutschland AG is able to look back on a very successful financial year. Private and institutional investors value the benefits provided by the reasonable pricing, liquidity and transparency of ishares ETFs. BlackRock conducts all its global business in exchange traded index funds (ETFs) under the ishares brand. As at 31 October 2014, the volume of assets under management for the 62 ishares funds currently issued in Germany was approximately EUR 35 billion, making BlackRock Asset Management Deutschland AG the fifth-largest retail fund company in Germany (source: BVI Bundesverband Investment und Asset Management e.v.). This semi-annual report provides detailed information about the performance of our index funds. Our ETF product range includes 249 ishares funds currently approved in Germany, providing investors with easy and diversified access to a large number of worldwide markets and asset classes. A quarter of these exchange-traded index funds are issued in Germany. The code (DE) in the fund name identifies them as such. Institutional and private investors alike value ishares ETFs not only as building blocks that enable them to put their own investment ideas into practice in their portfolios, but as the funds become more widespread, demand also rises for ETF-based asset management products. In light of this, together with respected partners we have developed models that enable different types of investor with differing risk/return profiles to create suitable asset inventories. This includes the Best of ETF Strategy in cooperation with the Bank für Vermögen. ETFs have flourished in Germany and Europe since their launch more than ten years ago. On 11 April 2000 ishares DJ Euro STOXX 50 (now ishares EURO STOXX 50 UCITS ETF (DE)) and ishares DJ STOXX 50 (now ishares STOXX Europe 50 UCITS ETF (DE)) were the first exchange-traded index funds to be listed on the German stock exchange. This listing has been instrumental in making a lasting change to the European investment landscape. ETFs have provided investors with new avenues in portfolio management, particularly through their high level of liquidity, efficiency and transparency. As a provider from the outset, ishares retains its outstanding positioning in the European ETF market. We continue to invest in excellent service and products that meet the needs of our clients. We intend to develop our market leadership further through the continuous and innovative extension of our product range. Among the strategic competitive advantages of ishares ETFs are high market liquidity, narrow bid/ask spreads and a high level of precision in index replication. In addition, as a leading ETF provider, we also aim to develop the ETF market as a whole. This includes making even more efforts to promote the idea of a closely-linked European ETF market. That s why, in March 2014, we listed the first ETF with an international securities structure in Xetra at the German stock market. All share transactions in the fund are executed via a central point irrespective of which European stock market they are traded on. That helps to increase liquidity and reduce costs, which could ultimately be reflected in growth in the European ETF market. Please visit our website www.ishares.de or call us on +49 (0) 89 42729-5858 for further information. We would like to thank you for your trust and we are looking forward to continuing to work together in partnership. Your BlackRock Asset Management Deutschland AG Directors Christian Staub Dr Thomas Groffmann Alexander Mertz 4 of 11
Semi-Annual Report for ishares Dow Jones Global Titans 50 UCITS ETF (DE) for the reporting period from 01/05/2014 to 31/10/2014 Statement of assets and liabilities as at 31/10/2014 Market value % of fund in EUR assets 1) I. Assets 193,252,835.94 100.04 1. Shares 188,840,669.56 97.76 Australia 4,541,620.51 2.35 Curaçao 2,760,652.10 1.43 Germany 3,670,330.38 1.90 France 5,440,476.02 2.82 United Kingdom (UK) 14,412,180.71 7.46 Japan 5,305,478.18 2.75 Switzerland 14,976,561.97 7.75 Spain 2,326,359.36 1.20 United States of America 135,407,010.33 70.10 2. Other securities 3,797,999.61 1.97 Russia 846,129.04 0.44 South Korea 2,951,870.57 1.53 3. Receivables 304,079.06 0.16 4. Bank accounts 310,087.71 0.16 II. Liabilities -76,845.49-0.04 Other liabilities -76,845.49-0.04 III. Fund assets 193,175,990.45 100.00 1) Rounding of percentages during the calculation may result in slight rounding differences. 5 of 11
Semi-Annual Report for ishares Dow Jones Global Titans 50 UCITS ETF (DE) for the reporting period from 01/05/2014 to 31/10/2014 Statement of net assets as at 31/10/2014 Designation of class of security ISIN Market Units or shares or currency in 1,000 As at Purchases/ 31/10/2014 Additions Sales/ Disposals in the reporting period Price Market value in EUR Securities 192,638,669.17 99.72 Exchange-traded securities 192,638,669.17 99.72 Shares 184,369,853.96 95.44 Apple Inc. Registered Shares o.n. US0378331005 UNITS 161,838 154,753 4,630 USD 108.000 13,950,433.06 7.22 AT & T Inc. Registered Shares DL 1 US00206R1023 UNITS 140,154 72,989 1,223 USD 34.840 3,897,329.05 2.02 Banco Santander S.A. Acciones Nom. EO 0.50 ES0113900J37 UNITS 331,013 179,580 2,954 EUR 7.028 2,326,359.36 1.20 Bank of America Corp. Registered Shares DL 0.01 US0605051046 UNITS 284,201 147,878 2,485 USD 17.160 3,892,479.34 2.01 BASF SE Namens-Aktien o.n. DE000BASF111 UNITS 24,828 12,967 204 EUR 70.240 1,743,918.72 0.90 Berkshire Hathaway Inc. Reg.Shares B New DL 0.00333US0846707026 UNITS 49,259 25,614 - USD 140.160 5,510,526.70 2.85 BHP Billiton Ltd. Registered Shares o.n. AU000000BHP4 UNITS 86,734 45,286 704 AUD 33.960 2,066,472.00 1.07 BP PLC Registered Shares DL 0.25 GB0007980591 UNITS 505,543 263,984 4,126 GBP 4.490 2,898,456.99 1.50 Chevron Corp. Registered Shares DL 0.75 US1667641005 UNITS 51,320 26,764 519 USD 119.950 4,913,266.61 2.54 Cisco Systems Inc. Registered Shares DL 0.001 US17275R1023 UNITS 137,811 71,844 1,693 USD 24.470 2,691,542.77 1.39 Citigroup Inc. Registered Shares New DL 0.01 US1729674242 UNITS 81,944 42,848 786 USD 53.530 3,501,046.14 1.81 Coca-Cola Co., The Registered Shares DL 0.25 US1912161007 UNITS 106,678 56,911 - USD 41.880 3,565,865.59 1.85 Comcast Corp. Reg. Shares Class A DL 0.01 US20030N1019 UNITS 69,942 36,501 794 USD 55.350 3,089,862.14 1.60 Commonwealth Bank of Australia Registered Shares AU000000CBA7 UNITS 43,837 22,911 368 AUD 80.480 2,475,148.51 1.28 o.n. ConocoPhillips Registered Shares DL 0.01 US20825C1045 UNITS 33,212 17,337 229 USD 72.150 1,912,558.80 0.99 Disney Co., The Walt Registered Shares DL 0.01 US2546871060 UNITS 42,683 22,407 1,125 USD 91.380 3,113,074.55 1.61 Exxon Mobil Corp. Registered Shares o.n. US30231G1022 UNITS 115,271 60,160 1,647 USD 96.710 8,897,640.93 4.61 General Electric Co. Registered Shares DL 0.06 US3696041033 UNITS 271,188 141,502 2,095 USD 25.810 5,586,527.03 2.89 Gilead Sciences Inc. Registered Shares DL 0.001 US3755581036 UNITS 40,870 40,870 - USD 112.000 3,653,474.59 1.89 GlaxoSmithKline PLC Registered Shares LS 0.25 GB0009252882 UNITS 131,614 68,499 1,401 GBP 14.175 2,382,251.31 1.23 Google Inc. Reg. Shares Class A DL 0.001 US38259P5089 UNITS 7,695 4,032 44 USD 567.870 3,487,714.94 1.81 Google Inc. Registered Shares C DL 0.001 US38259P7069 UNITS 7,695 4,032 44 USD 559.080 3,433,728.97 1.78 HSBC Holdings PLC Registered Shares DL 0.50 GB0005405286 UNITS 515,395 274,974 4,203 GBP 6.395 4,208,653.47 2.18 Intel Corp. Registered Shares DL 0.001 US4581401001 UNITS 133,803 70,108 1,609 USD 34.010 3,632,084.25 1.88 Intl Business Machines Corp. Registered Shares DL US4592001014 UNITS 25,093 13,205 970 USD 164.400 3,292,591.34 1.70 0.20 Johnson & Johnson Registered Shares DL 1 US4781601046 UNITS 76,211 39,840 784 USD 107.780 6,556,004.92 3.39 JPMorgan Chase & Co. Registered Shares DL 1 US46625H1005 UNITS 101,643 53,182 1,277 USD 60.480 4,906,510.00 2.54 McDonald s Corp. Registered Shares DL 0.01 US5801351017 UNITS 26,519 13,851 335 USD 93.730 1,983,897.32 1.03 Merck & Co. Inc. Registered Shares DL 0.01 US58933Y1055 UNITS 77,961 40,780 1,443 USD 57.940 3,605,282.69 1.87 Microsoft Corp. Registered Shares DL 0.00000625 US5949181045 UNITS 222,694 123,596 115 USD 46.950 8,345,023.12 4.32 Mitsubishi UFJ Finl Grp Inc. Registered Shares o.n. JP3902900004 UNITS 384,100 200,900 2,800 JPY 632.200 1,728,849.73 0.89 Nestlé S.A. Namens-Aktien SF 0.10 CH0038863350 UNITS 87,158 45,513 711 CHF 70.400 5,088,445.99 2.63 Novartis AG Namens-Aktien SF 0.50 CH0012005267 UNITS 73,152 38,196 589 CHF 89.300 5,417,300.38 2.80 Oracle Corp. Registered Shares DL 0.01 US68389X1054 UNITS 87,897 46,797 4,385 USD 39.050 2,739,545.53 1.42 PepsiCo Inc. Registered Shares DL 0.0166 US7134481081 UNITS 40,733 21,247 511 USD 96.170 3,126,579.27 1.62 Pfizer Inc. Registered Shares DL 0.05 US7170811035 UNITS 171,374 89,656 2,119 USD 29.950 4,096,615.38 2.12 Philip Morris Internat. Inc. Registered Shares o.n. US7181721090 UNITS 42,226 22,049 643 USD 89.010 2,999,868.21 1.55 Procter & Gamble Co., The Registered Shares o.n. US7427181091 UNITS 73,179 38,125 559 USD 87.270 5,097,237.60 2.64 QUALCOMM Inc. Registered Shares DL 0.0001 US7475251036 UNITS 45,281 23,669 600 USD 78.510 2,837,425.18 1.47 Royal Dutch Shell Reg. Shares Class A EO 0.07 GB00B03MLX29 UNITS 106,230 56,394 872 EUR 28.490 3,026,492.70 1.57 Sanofi S.A. Actions Port. EO 2 FR0000120578 UNITS 32,483 17,010 456 EUR 73.660 2,392,697.78 1.24 Schlumberger N.V. (Ltd.) Reg. Shares DL 0.01 AN8068571086 UNITS 35,058 18,289 401 USD 98.660 2,760,652.10 1.43 Siemens AG Namens-Aktien o.n. DE0007236101 UNITS 21,426 11,190 179 EUR 89.910 1,926,411.66 1.00 Total S.A. Actions au Porteur EO 2.50 FR0000120271 UNITS 64,272 33,486 289 EUR 47.420 3,047,778.24 1.58 Toyota Motor Corp. Registered Shares o.n. JP3633400001 UNITS 77,310 38,600 300 JPY 6,498.000 3,576,628.45 1.85 % of fund assets 2) Verizon Communications Inc. Registered Shares DL 0.10 US92343V1044 UNITS 112,029 58,473 836 USD 50.250 4,493,140.06 2.33 6 of 11
Semi-Annual Report for ishares Dow Jones Global Titans 50 UCITS ETF (DE) for the reporting period from 01/05/2014 to 31/10/2014 Designation of class of security ISIN Market Units or shares or currency in 1,000 As at Purchases/ 31/10/2014 Additions Sales/ Disposals in the reporting period Price Market value in EUR % of fund assets 2) Vodafone Group PLC Registered Shares DL 0.2095238 GB00BH4HKS39 UNITS 716,393 374,072 5,835 GBP 2.073 1,896,326.24 0.98 Wal-Mart Stores Inc. Registered Shares DL 0.10 US9311421039 UNITS 42,680 22,408 977 USD 76.270 2,598,134.25 1.34 Other investment securities 4,470,815.60 2.31 Roche Holding AG Inhaber-Genußscheine o.n. CH0012032048 UNITS 19,003 9,923 147 CHF 283.700 4,470,815.60 2.31 Other securities 3,797,999.61 1.97 OAO GAZPROM Nam.Akt.(Sp.ADRs)/2 RL 5 US3682872078 UNITS 159,945 83,507 1,297 USD 6.628 846,129.04 0.44 Samsung Electronics Co. Ltd. Reg.Shs(GDRs144A/95)1/2/SW5000 US7960508882 UNITS 6,432 3,369 96 USD 575.000 2,951,870.57 1.53 Bank Accounts, Unsecuritised Money Market Instruments, Money Market Funds 310,087.71 0.16 Bank accounts 310,087.71 0.16 EUR balances 230,229.83 0.12 Custodian Bank: StateStreet Bank EUR 230,229.83 % 100.000 230,229.83 0.12 Non-EU/EEA currencies 79,857.88 0.04 Custodian Bank: StateStreet Bank CHF 3.39 % 100.000 2.81 0.00 USD 100,050.46 % 100.000 79,855.07 0.04 Other assets 304,079.06 0.16 Dividend claims JPY 5,931,852.00 42,232.69 0.02 USD 186,066.45 148,508.57 0.08 Withholding tax reimbursement claims CHF 109,573.86 90,868.26 0.05 Other liabilities EUR 22,469.54 22,469.54 0.01-76,845.49-0.04 Management fee EUR -76,845.49-76,845.49-0.04 Fund assets EUR 193,175,990.45 100.00 Unit value EUR 25.93 Units in circulation UNITS 7,450,000 2) Rounding of percentages during the calculation may result in slight rounding differences. Transactions during the reporting period, insofar as these no longer appear in the assets listed: Securities purchases and sales, investment units and bonds (market allocation on the reporting date) ISIN Units or shares or currency in 1,000 Purchases/ Additions Sales/ Disposals Securities Exchange-traded securities Shares Banco Santander S.A. Anrechte ES06139009K2 UNITS 324,013 324,013 Banco Santander S.A. Anrechte ES06139009J4 UNITS 158,258 158,258 ENI S.p.A. Azioni nom. o.n. IT0003132476 UNITS 15,960 51,283 7 of 11
Semi-Annual Report for ishares Dow Jones Global Titans 50 UCITS ETF (DE) for the reporting period from 01/05/2014 to 31/10/2014 Profit-and-Loss Account (incl. Income Adjustment) for the period from 01/05/2014 to 31/10/2014 I. Income 1. Dividends from domestic issuers EUR 58,890.77 2. Dividends from foreign issuers (before withholding tax) EUR 2,124,506.39 3. Interest from domestic liquidity investments EUR 145.85 4. Deduction of foreign withholding tax EUR -409,833.91 5. Other income EUR 35,910.86 Total income EUR 1,809,619.96 II. Expenses 1. Interest from borrowing EUR -289.62 2. Management fee EUR -429,947.74 3. Other expenses EUR -9,398.96 Total expenses EUR -439,636.32 III. Ordinary net income EUR 1,369,983.64 IV. Disposals 1. Realised gains EUR 840,114.66 2. Realised losses EUR -218,934.59 Gain/loss on disposals EUR 621,180.07 V. Annual realised results EUR 1,991,163.71 1. Net change in unrealised gains EUR 12,094,481.78 2. Net change in unrealised losses EUR -75,926.15 VI. Annual unrealised results EUR 12,018,555.63 VII. Result for the financial year EUR 14,009,719.34 Change in Fund Assets 2014 I. Value of fund assets at the start of the financial year EUR 83,277,953.36 1. Distribution for the previous year EUR -576,000.00 2. Interim distributions EUR -377,105.70 3. Inflow/Outflow of funds (net) EUR 97,574,850.00 a) Proceeds received from sales of units EUR 97,574,850.00 b) Payments for redemption of units EUR 0.00 4. Income adjustment/cost compensation EUR -733,426.55 5. Result for the financial year EUR 14,009,719.34 of which unrealised gains EUR 12,094,481.78 of which unrealised losses EUR -75,926.15 II. Value of fund assets at the end of the financial year EUR 193,175,990.45 8 of 11
Semi-Annual Report for ishares Dow Jones Global Titans 50 UCITS ETF (DE) for the reporting period from 01/05/2014 to 31/10/2014 Annex Other information Number of fund units in circulation and value of a fund unit on the reporting date pursuant to Article 16 Para. 1 No. 1 of the German Capital Investment Accounting and Valuation Ordinance (KARBV) Unit value EUR 25.93 Units in circulation UNITS 7,450,000 Information on the evaluation process for assets pursuant to Article 16 Para. 1 No. 2 KARBV Security Prices and Market Prices The fund assets are valued on the basis of the following market prices: All securities: Closing prices on the respective valuation dates The valuation of assets generally took place during the financial year and at the balance sheet date on the basis of the last traded stock exchange price. Assets not admitted for trading on stock exchanges nor admitted to another regulated market or included in such market, or for which no tradable value is available, are valued at current market values, which shall be assessed with due care using appropriate valuation models and taking into consideration current market conditions. Money in bank accounts and existing receivables are valued at their current nominal value. Existing liabilities are reported at the amounts payable. Exchange Rate(s) or Conversion Factor(s) (bulk quoting) as at 31/10/2014 Australian dollar (AUD) 1.42537 = 1 euro (EUR) British Pound Sterling (GBP) 0.78314 = 1 euro (EUR) Japanese yen (JPY) 140.45641 = 1 euro (EUR) Swiss francs (CHF) 1.20585 = 1 euro (EUR) US dollar (USD) 1.25290 = 1 euro (EUR) Index fund information pursuant to Article 16 Para. 2 KARBV Tracking error level at the end of the reporting period, pursuant to Article 16 Para. 2 No. 1 KARBV 1.28 percentage points Further information necessary for understanding the report pursuant to Article 7 No. 9 d) KARBV Explanation of the calculation of net change in unrealised gains and losses Determination of net change in unrealised gains and losses takes place by means of comparing, in each financial year, the valuations of assets included in the unit price with the relevant historical purchase prices, the level of the positive differences in the sum of unrealised gains included, the level of the negative differences in the sum of unrealised losses included and by determining the net changes from a comparison of the sum totals at the end of the financial year with those at the beginning. Munich, 31 October 2014 BlackRock Asset Management Deutschland AG Dr Thomas Groffmann Alexander Mertz 9 of 11
Management Company and Depository Management Company BlackRock Asset Management Deutschland AG Max-Joseph-Str. 6 80333 Munich, Germany Share capital as at 31/12/2013: EUR 5 million Liable equity as at 31/12/2013: EUR 10 million Shareholder BlackRock Investment Management (UK) Limited Management Christian Staub* Chairman of the Management Board Munich Dr Thomas Groffmann Vice Chairman of the Management Board Munich Alexander Mertz Management Board Munich Supervisory Board Rachel Lord (Chairwoman)** BlackRock, Managing Director, Head of Sales EMEA ishares London, UK Derek Stein BlackRock, Managing Director, Head of Business Operations Group San Francisco, USA. Prof. Markus Rudolf Vice-Rector and University Professor, WHU Otto Beisheim School of Management Depository State Street Bank GmbH Brienner Str. 59 80333 Munich, Germany Auditor Deloitte & Touche GmbH Wirtschaftsprüfungsgesellschaft Rosenheimer Platz 4 81669 Munich, Germany (**) since 01/07/2014 10 of 11
BlackRock Asset Management Deutschland AG Max-Joseph-Str. 6 D-80333 Munich, Germany Tel: +49 (0) 89 42729-5858 info@ishares.de www.ishares.de