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SUOA

ISHARES $ CORP BOND ESG UCITS ETF

* PRIIP KID
* Factsheet
* Prospectus
* Download

* Overview
* Performance
* Fund Facts
* Holdings
* Literature

Fixed Income
* PRIIP KID
* Factsheet
* Prospectus
* Download

Trade this ETF now through your brokerage.

SUOA

ISHARES $ CORP BOND ESG UCITS ETF

Add to Compare Go to Compare
CHF Hedged (Accumulating) EUR Hedged (Distributing) USD (Accumulating) USD
(Distributing)
* NAV as of 05/Jun/2023 USD 4.55
52 WK: 4.17 - 4.68
* 1 Day NAV Change as of 05/Jun/2023 0.00 (-0.05%)
* NAV Total Return as of 02/Jun/2023 YTD: 2.83%

* Overview
* Performance
* Fund Facts
* Holdings
* Literature

OVERVIEW

WHY SUOA?

1. Gain diversified exposure to USD denominated, investment grade corporate
bonds across various sectors (industrials, utilities and financial
companies).
2. Access bonds from companies with superior environmental, social and
governance (ESG) practices relative to their peers.
3. Seeks to track an index that explicitly excludes issuers involved in
controversial weapons, nuclear weapons, conventional weapons, civilian
firearms, tobacco, adult entertainment, alcohol, gambling, nuclear power,
genetically modified organisms, oil sands and thermal coal.

INVESTMENT OBJECTIVE

The Fund seeks to track the performance of an index composed of USD denominated
ESG (environmental, social and governance) screened corporate bonds.
Next: Previous:

Important Information: Capital at Risk. The value of investments and the income
from them can fall as well as rise and are not guaranteed. Investors may not get
back the amount originally invested.

Important Information: Important Information: The value of your investment and
the income from it will vary and your initial investment amount cannot be
guaranteed. ETFs trade on exchanges like stocks and are bought and sold at
market prices which may be different to the net asset values of the ETFs. Two
main risks related to fixed income investing are interest rate risk and credit
risk. Typically, when interest rates rise, there is a corresponding decline in
the market value of bonds. Credit risk refers to the possibility that the issuer
of the bond will not be able to repay the principal and make interest payments.
The fund invests in fixed interest securities issued by companies. There is a
risk of default where the issuing company may not pay income or repay capital to
the Fund when due. The currency hedging is designed to reduce, but cannot
eliminate the impact of currency movements between the Base Currency and the
currencies in which some or all of the underlying investments are transacted.
Depending on the exchange rates, this may have a positive or negative impact on
the performance of the Fund.
Show More Show Less

PERFORMANCE

CHART

SINCE INCEPT.

Line chart with 170 data points.
The chart has 1 X axis displaying Time. Range: 2020-03-02 00:00:00 to 2023-06-02
00:00:00.
The chart has 1 Y axis displaying values. Range: -32 to 16.

Created with Highcharts 8.2.0Since Incept.31-Dec-20216,8008,40010,00011,600
End of interactive chart.

Performance chart data not available for display.

View full chart
* Growth of Hypothetical 10,000

iShares $ Corp Bond ESG UCITS ETF (USD)

The figures shown relate to past performance. Past performance is not a reliable
indicator of future results and should not be the sole factor of consideration
when selecting a product or strategy.

Share Class and Benchmark performance displayed in USD, hedged fund benchmark
performance is displayed in USD.

Performance is shown on a Net Asset Value (NAV) basis, with gross income
reinvested where applicable. Performance data is based on the net asset value
(NAV) of the ETF which may not be the same as the market price of the ETF.
Individual shareholders may realize returns that are different to the NAV
performance.

The return of your investment may increase or decrease as a result of currency
fluctuations if your investment is made in a currency other than that used in
the past performance calculation. Source: Blackrock

* RETURNS

* Calendar Year
* Discrete Annual
* Annualised
* Cumulative

This chart shows the fund's performance as the percentage loss or gain per year
over the last 2 years.

This chart shows the fund’s performance as the percentage loss or gain per year
over the last 2 years against its benchmark. It can help you to assess how the
fund has been managed in the past and compare it to its benchmark.

CHART

Bar chart with 2 data series.
The chart has 1 X axis displaying categories.
The chart has 1 Y axis displaying Values. Range: -20 to 0.

Created with Highcharts 8.2.0ValuesTotal Return (%)Benchmark
(%)20182019202020212022-20-15-10-50

End of interactive chart.

During this period performance was achieved under circumstances that no longer
apply
*On , the Fund changed its name and/or investment objective and policy..

2018 2019 2020 2021 2022 Total Return (%) -1.7 -15.3 Benchmark (%) -1.3 -15.0

Missing calendar year returns data

From
31/Mar/2018
To
31/Mar/2019 From
31/Mar/2019
To
31/Mar/2020 From
31/Mar/2020
To
31/Mar/2021 From
31/Mar/2021
To
31/Mar/2022 From
31/Mar/2022
To
31/Mar/2023 Total Return (%)

as of 31/Mar/2023

- - 7.24 -4.47 -5.33 Benchmark (%)

as of 31/Mar/2023

- - 7.53 -4.25 -5.15

as of 31/May/2023 31/Mar/2023 31/Dec/2022

1y 3y 5y 10y Incept. Total Return (%) -1.78 -3.30 - - -3.01 Benchmark (%)
-1.60 -3.06 - - -2.88

Missing average annual returns data

as of 31/May/2023 31/Mar/2023 31/Dec/2022

YTD 1m 3m 6m 1y 3y 5y 10y Incept. Total Return (%) 2.90 -1.35 2.10 2.21 -1.78
-9.57 - - -9.44 Benchmark (%) 2.73 -1.34 2.08 2.28 -1.60 -8.89 - - -9.03

Missing cumulative returns data

Past performance is not a guide to future performance and should not be the sole
factor of consideration when selecting a product. Performance data is based on
the net asset value (NAV) of the ETF which may not be the same as the market
price of the ETF. Individual shareholders may realise returns that are different
to the NAV performance

The figures shown relate to past performance. Past performance is not a reliable
indicator of future performance. Markets could develop very differently in the
future. It can help you to assess how the fund has been managed in the past

Share Class and Benchmark performance displayed in USD hedged Share Class
Benchmark performance is displayed in USD.

KEY FACTS

Net Assets as of 05/Jun/2023 USD 774,324,377
Net Assets of Fund as of 05/Jun/2023 USD 2,125,023,883
Share Class launch date 03/Mar/2020
Fund Launch Date 03/Mar/2020
Share Class Currency USD
Fund Base Currency USD
Asset Class Fixed Income
Benchmark Index Bloomberg MSCI US Corporate Sustainable SRI Index
SFDR Classification Article 8
Shares Outstanding as of 05/Jun/2023 170,361,120
Total Expense Ratio 0.15%
Use of Income Accumulating
Securities Lending Return -
Domicile Ireland
Product Structure Physical
Rebalance Frequency Monthly
Methodology Sampled
UCITS Compliant Yes
Issuing Company iShares II plc
Fund Manager BlackRock Asset Management Ireland Limited
Administrator State Street Fund Services (Ireland) Limited
Custodian State Street Custodial Services (Ireland) Limited
Fiscal Year End 31 October
Bloomberg Ticker -
ISIN IE00BKKKWJ26
Valor 52275784

PORTFOLIO CHARACTERISTICS

Number of Holdings as of 02/Jun/2023 4,963
Benchmark Level as of 05/Jun/2023 USD 126.31
Benchmark Ticker I34325US
Standard Deviation (3y) as of 31/May/2023 8.12%
3y Beta as of 31/May/2023 1.00
Weighted Av YTM as of 02/Jun/2023 5.34%
Weighted Avg Coupon as of 02/Jun/2023 3.74%
Weighted Avg Maturity as of 02/Jun/2023 10.37 yrs
Effective Duration as of 02/Jun/2023 6.90

SUSTAINABILITY CHARACTERISTICS

Sustainability Characteristics provide investors with specific non-traditional
metrics. Alongside other metrics and information, these enable investors to
evaluate funds on certain environmental, social and governance characteristics.
Sustainability Characteristics do not provide an indication of current or future
performance nor do they represent the potential risk and reward profile of a
fund. They are provided for transparency and for information purposes only.
Sustainability Characteristics should not be considered solely or in isolation,
but instead are one type of information that investors may wish to consider when
assessing a fund.

The metrics are not indicative of how or whether ESG factors will be integrated
into a fund. Unless otherwise stated in fund documentation and included within a
fund’s investment objective, the metrics do not change a fund’s investment
objective or constrain the fund’s investable universe, and there is no
indication that an ESG or Impact focused investment strategy or exclusionary
screens will be adopted by a fund. For more information regarding a fund's
investment strategy, please see the fund's prospectus.

Review the MSCI methodologies behind Sustainability Characteristics using the
links below.

MSCI ESG Fund Rating (AAA-CCC) as of 19/May/2023 A
MSCI ESG % Coverage as of 19/May/2023 99.65
MSCI ESG Quality Score (0-10) as of 19/May/2023 7.01
MSCI ESG Quality Score - Peer Percentile as of 19/May/2023 92.58
Fund Lipper Global Classification as of 19/May/2023 Bond USD Corporates
Funds in Peer Group as of 19/May/2023 283
MSCI Weighted Average Carbon Intensity (Tons CO2E/$M SALES) as of 19/May/2023
80.96
MSCI Weighted Average Carbon Intensity % Coverage as of 19/May/2023 99.02
MSCI Implied Temperature Rise (0-3.0+ °C) as of 19/May/2023 > 2.0° - 2.5° C
MSCI Implied Temperature Rise % Coverage as of 19/May/2023 94.86

What is the Implied Temperature Rise (ITR) metric? Learn what the metric means,
how it is calculated, and about the assumptions and limitations for this
forward-looking climate-related metric.

Climate change is one of the greatest challenges in human history and will have
profound implications for investors. To address climate change, many of the
world's major countries have signed the Paris Agreement. The temperature goal of
the Paris Agreement is to limit global warming to well below 2°C above
pre-industrial levels, and ideally 1.5 °C, which will help us avoid the most
severe impacts of climate change.

What is the ITR metric?

The ITR metric is used to provide an indication of alignment to the temperature
goal of the Paris Agreement for a company or a portfolio. Scientific consensus
suggests that reducing emissions until they reach net zero around mid-century
(2050-2070) is how this goal could be met. A net zero emissions economy is one
that balances emissions and removals.

How is the ITR metric calculated?

The ITR metric is calculated by looking at the current emissions intensity of
companies within the fund's portfolio as well as the potential for those
companies to reduce its emissions over time. If emissions in the global economy
followed the same trend as the emissions of companies within the fund's
portfolio, global temperatures would ultimately rise within this band.

Note, only corporate issuers are covered within the calculation. A summary
explanation of MSCI’s methodology and assumptions for its ITR metric can be
found here.

Because the ITR metric is calculated in part by considering the potential for a
company within the fund’s portfolio to reduce its emissions over time, it is
forward-looking and prone to limitations. As a result, BlackRock publishes
MSCI’s ITR metric for its funds in temperature range bands. The bands help to
underscore the underlying uncertainty in the calculations and the variability of
the metric.

What are the key assumptions and limitations of the ITR metric?

This forward-looking metric is calculated based on a model, which is dependent
upon multiple assumptions. Also, there are limitations with the data inputs to
the model. Importantly, an ITR metric may vary meaningfully across data
providers for a variety of reasons due to methodological choices (e.g.,
differences in time horizons, the scope(s) of emissions included and portfolio
aggregation calculations).

There is not a universally accepted way to calculate an ITR. There is not a
universally agreed upon set of inputs for the calculation. At present,
availability of input data varies across asset classes and markets. To the
extent that data becomes more readily available and more accurate over time, we
expect that ITR metric methodologies will evolve and may result in different
outputs. Where data is not available, and / or if data changes, the estimation
methods vary, particularly those related to a company’s future emissions.

The ITR metric estimates a fund’s alignment with the Paris Agreement temperature
goal. However, there is no guarantee that these estimates will be reached. The
ITR metric is not a real time estimate and may change over time, therefore it is
prone to variance and may not always reflect a current estimate.

The ITR metric is not an indication or estimate of a fund’s performance or risk.
Investors should not rely on this metric when making an investment decision and
instead should refer to a fund’s prospectus and governing documents. This
estimate and the associated information is not intended as a recommendation to
invest in any fund, nor is it intended to indicate any correlation between a
fund’s ITR metric and its future investment performance.

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All data is from MSCI ESG Fund Ratings as of 19/May/2023, based on holdings as
of 31/Mar/2023. As such, the fund’s sustainable characteristics may differ from
MSCI ESG Fund Ratings from time to time.

To be included in MSCI ESG Fund Ratings, 65% (or 50% for bond funds and money
market funds) of the fund’s gross weight must come from securities with ESG
coverage by MSCI ESG Research (certain cash positions and other asset types
deemed not relevant for ESG analysis by MSCI are removed prior to calculating a
fund’s gross weight; the absolute values of short positions are included but
treated as uncovered), the fund’s holdings date must be less than one year old,
and the fund must have at least ten securities.

BUSINESS INVOLVEMENT

Business Involvement metrics can help investors gain a more comprehensive view
of specific activities in which a fund may be exposed through its investments.

Business Involvement metrics are not indicative of a fund’s investment
objective, and, unless otherwise stated in fund documentation and included
within a fund’s investment objective, do not change a fund’s investment
objective or constrain the fund’s investable universe, and there is no
indication that an ESG or Impact focused investment strategy or exclusionary
screens will be adopted by a fund. For more information regarding a fund's
investment strategy, please see the fund's prospectus.

Review the MSCI methodology behind the Business Involvement metrics, using links
below.

MSCI - Controversial Weapons as of 02/Jun/2023 0.00%
MSCI - UN Global Compact Violators as of 02/Jun/2023 0.00%
MSCI - Nuclear Weapons as of 02/Jun/2023 0.00%
MSCI - Thermal Coal as of 02/Jun/2023 0.00%
MSCI - Civilian Firearms as of 02/Jun/2023 0.00%
MSCI - Oil Sands as of 02/Jun/2023 0.00%
MSCI - Tobacco as of 02/Jun/2023 0.00%

--------------------------------------------------------------------------------

Business Involvement Coverage as of 02/Jun/2023 97.95%
Percentage of Fund not covered as of 02/Jun/2023 2.05%

BlackRock business involvement exposures as shown above for Thermal Coal and Oil
Sands are calculated and reported for companies that generate more than 5% of
revenue from thermal coal or oil sands as defined by MSCI ESG Research. For the
exposure to companies that generate any revenue from thermal coal or oil sands
(at a 0% revenue threshold), as defined by MSCI ESG Research, it is as follows:
Thermal Coal 0.00% and for Oil Sands 0.00%.

Business Involvement metrics are calculated by BlackRock using data from MSCI
ESG Research which provides a profile of each company’s specific business
involvement. BlackRock leverages this data to provide a summed up view across
holdings and translates it to a fund's market value exposure to the listed
Business Involvement areas above.

Business Involvement metrics are designed only to identify companies where MSCI
has conducted research and identified as having involvement in the covered
activity. As a result, it is possible there is additional involvement in these
covered activities where MSCI does not have coverage. This information should
not be used to produce comprehensive lists of companies without involvement.
Business Involvement metrics are only displayed if at least 1% of the fund’s
gross weight includes securities covered by MSCI ESG Research.

SUSTAINABILITY-RELATED DISCLOSURE

This section provides sustainability-related information about the Fund,
pursuant to Article 10 SFDR.

A. Summary

This Fund promotes environmental or social characteristics, but does not have as
its objective sustainable investment. The Fund is passively managed and seeks to
promote the following environmental and social characteristics by tracking the
performance of the Bloomberg MSCI US Corporate Sustainable SRI Index, its
Benchmark Index: (1) exclusion of issuers deemed to be involved in certain
activities considered to have negative environmental and/or social outcomes; (2)
exclusion of issuers deemed to be involved in very severe ESG related
controversies; (3) exclusion of issuers considered to be lagging industry peers
in their high exposure and failure to manage significant ESG risks (based on an
ESG rating); and (4) exposure to investments qualifying as sustainable
investments.

While the Fund does not have as its objective a sustainable investment, it will
have a minimum proportion of sustainable investments. BlackRock defines
sustainable investments as investments in issuers or securities that contribute
to an environmental or social objective, do not significantly harm any of those
objectives and where investee companies follow good governance practices. By
investing in a portfolio of securities that, as far as possible and practicable,
consists of the component securities of the Fund’s Benchmark Index, a proportion
of the Fund’s investments will qualify as sustainable investments.

The Fund’s investments qualifying as sustainable investments may be in: (1)
fixed income securities which have been classified as “green bonds”; (2) issuers
involved in activities deemed to contribute to positive environmental and/or
social impacts; or (3) issuers which have committed to one or more active carbon
emissions reduction target(s) approved by the Science Based Targets initiative
(SBTi).

At each index rebalance, all investments qualifying as sustainable are screened
against certain minimum environmental and social indicators. Where an investment
has been identified as being associated with activities deemed to have highly
negative environmental and social impacts, it shall not be eligible as a
sustainable investment.

The investment policy of the Fund is to invest in a portfolio of securities that
as far as possible and practicable consists of the component securities of the
Benchmark Index and thereby comply with the ESG characteristics of its Benchmark
Index (as further described in Section D. Investment strategy below). By
investing in the constituents of its Benchmark Index, the Fund’s investment
strategy enables it to comply with the ESG requirements of its Benchmark Index
as determined by the index provider. The Fund takes into consideration
principal adverse impacts on sustainability factors by tracking the Benchmark
Index which incorporates certain ESG criteria in the selection of index
constituents.

The Fund seeks to invest in a portfolio of securities that as far as possible
and practicable consists of the component securities of the Benchmark Index. It
is expected that at least 80% of the Fund's assets will be invested in either
securities within the Benchmark Index or in securities that meet the ESG
selection criteria of the Benchmark Index. The Fund does not currently commit to
investing more than 0% of its assets in sustainable investments with an
environmental objective aligned with the EU Taxonomy. The Fund does not
currently commit to invest in fossil gas and/or nuclear energy related
activities that comply with the EU Taxonomy.

The Fund seeks to track the performance of the Benchmark Index which
incorporates certain ESG criteria in the selection of constituents, according to
its methodology. BlackRock monitors the Fund’s adherence to the environmental
and social characteristics which the Fund seeks to promote. The objective of the
Fund is to track the performance of the Benchmark Index. The environmental
and/or social characteristics of the Fund are embedded into the Benchmark Index
methodology and the Fund is monitored in a manner that seeks to identify
exceptions to the Fund’s sustainable commitments being met as at each rebalance.

BlackRock Portfolio Managers have access to research, data, tools, and analytics
to integrate ESG insights into their investment process. ESG datasets are
sourced from external third-party data providers and index providers, including
but not limited to MSCI, Sustainalytics, Refinitiv, S&P and Clarity AI.
BlackRock’s internal processes are focused on delivering high-quality
standardised and consistent data to be used by investment professionals and for
transparency and reporting purposes. Data, including ESG data, received through
our existing interfaces, is processed through a series of quality control and
completeness checks which seeks to ensure that data is high-quality data before
being made available for use downstream within BlackRock systems and
applications, such as Aladdin.

BlackRock applies a comprehensive due diligence process to evaluate provider
offerings with highly targeted methodology reviews and coverage assessments
based on the sustainable investment strategy (and the environmental and social
characteristics or sustainable investment objective) of the product. Our process
entails both qualitative and quantitative analysis to assess the suitability of
data products in line with regulatory standards as applicable.

Sustainable investing and understanding of sustainability is evolving along with
the data environment. Industry participants, including index providers face
challenges in identifying a single metric or set of standardized metrics to
provide a complete view on a company or an investment. ESG data sets are
constantly changing and improving as disclosure standards, regulatory frameworks
and industry practice evolve. There may be some circumstances where data is
unavailable, incomplete, or inaccurate. Despite reasonable efforts, information
may not always be available in which case an assessment will be made by the
index provider based on their knowledge of the investment or industry. In
certain cases, data may reflect actions that issuers may have taken only after
the fact, and do not reflect all potential instances of significant harm.

The Investment Manager carries out due diligence on the index providers and
engages with them on an ongoing basis with regard to index methodologies
including their assessment of good governance criteria set out by the SFDR which
include sound management structures, employee relations, remuneration of staff
and tax compliance at the level of investee companies.

The Investment Manager does not perform direct engagement with the companies /
issuers within the Benchmark Index as part of the investment strategy of the
Fund. The Investment Manager will engage directly with the index and data
providers to ensure better analytics and stability in ESG metrics. Engagement
with companies in which we invest our clients’ assets occurs at multiple levels
within BlackRock. Where investment teams choose to leverage engagement, this can
take a variety of forms but, in essence, the portfolio management team would
seek to have regular and continuing dialogue with executives or board directors
of engaged investee companies to advance sound governance and sustainable
business practices targeted at the identified ESG characteristics and principal
adverse indicators, as well as to understand the effectiveness of the company’s
management and oversight of activities designed to address the identified ESG
issues. Engagement also allows the portfolio management team to provide feedback
on company practices and disclosures.

The Benchmark Index is designated as a reference benchmark to determine whether
the Fund is aligned with the environmental and/or social characteristics that it
promotes.

B. No sustainable investment objective

This Fund promotes environmental or social characteristics, but does not have as
its objective sustainable investment.

While the Fund does not have as its objective a sustainable investment, it will
have a minimum proportion of sustainable investments. By investing in a
portfolio of fixed income securities that, as far as possible and practicable,
consists of the component securities of the Fund’s Benchmark Index, a proportion
of the Fund’s investments will qualify as sustainable investments.

At each index rebalance, all investments qualifying as sustainable are assessed
against certain minimum environmental and social indicators.

As part of the assessment, issuers are assessed on their involvement in
activities deemed to have highly negative environmental and social impacts.
Where an issuer has been identified as being involved in activities with highly
negative environmental and social impacts, it shall not be eligible as a
sustainable investment.

For bonds qualifying as green bonds, the assessment will be conducted at an
issuance level based on the use of the proceeds of the bonds which must be
formally and exclusively applied to promote climate or other environmental
sustainability purposes. In addition, certain minimum safeguards and eligibility
exclusions are incorporated in the selection of green bonds to avoid exposure to
bonds associated with activities deemed to have highly negative environmental
and societal impacts.

The mandatory indicators for adverse impacts on sustainability factors (as set
out in the Regulatory Technical Standards (RTS) under the SFDR) are considered
at each index rebalance through the assessment of the Fund’s investments
qualifying as sustainable.

Following this assessment, the following investments in issuers shall not
qualify as sustainable investments: (1) issuers deemed to be deriving at least
1% of their revenue from thermal coal which is significantly carbon intensive
and a major contributor to greenhouse gas emissions (taking into account
indicators relating to GHG emissions) (2) issuers that have been deemed to be
involved in severe ESG related controversies (taking into account indicators
relating to greenhouse gas emissions, biodiversity, water, waste and social and
employee matters), and (3) issuers which are deemed to be lagging industry peers
based on their high exposure and failure to manage significant ESG risks (taking
into account indicators relating to greenhouse gas emissions, biodiversity,
water, waste, unadjusted gender pay gap and board gender diversity).

In respect of green bonds, the indicators for adverse impacts on sustainability
factors are taken into account at each index rebalance and are assessed at the
issuance level based on an assessment of the use of proceeds of the bonds which
must be formally and exclusively applied to promote climate or other
environmental sustainability purposes. In addition, minimum safeguards and
eligibility exclusions are applied in the selection of green bonds to ensure the
proceeds of which are not applied to activities with highly negative
environmental and social outcomes. This includes through the minimum safeguards
and eligibility exclusions of bonds with the use of proceeds linked to thermal
coal extraction and power generation, significant biodiversity loss and
controversial weapons.

At each index rebalance, the Benchmark Index also excludes: (1) companies with a
“red” MSCI ESG controversy flag which includes companies determined to be in
violation of international and/or national standards (taking into account
indicators concerning violations of United Nations Global Compact principles and
OECD Guidelines for Multinational Enterprises), and (2) companies determined to
have any tie to controversial weapons (taking into account indicators concerning
ties to controversial weapons).

The Fund’s Benchmark Index excludes issuers with a “red” ESG controversy flag
which excludes issuers which have been determined by the index provider to be in
violation of the UN Guiding Principles on Business and Human Rights and OECD
Guidelines for Multinational Enterprises. The Benchmark Index applies the above
exclusionary criteria at each index rebalance.

C. Environmental or social characteristics of the financial product

The Fund is passively managed and seeks to promote the following environmental
and social characteristics by tracking the performance of the Bloomberg MSCI US
Corporate Sustainable SRI Index, its Benchmark Index:
1. exclusion of issuers deemed to be involved in certain activities considered
to have negative environmental and/or social outcomes;
2. exclusion of issuers deemed to be involved in very severe ESG related
controversies;
3. exclusion of issuers considered to be lagging industry peers in their high
exposure and failure to manage significant ESG risks (based on an ESG rating);
and
4. exposure to investments qualifying as sustainable investments.

These environmental and social characteristics are incorporated through the
selection of constituents in the Fund’s Benchmark Index at each index rebalance
(as described below). The Benchmark Index excludes issuers based on their
involvement in certain activities deemed to have negative environmental or
social outcomes. Issuers are excluded from the Benchmark Index based on their
involvement in the following business lines/activities (or related activities):
• alcohol
• tobacco
• gambling
• adult entertainment
• genetically modified organisms
• nuclear power
• nuclear weapons
• civilian firearms
• controversial weapons
• thermal coal
• unconventional oil and gas
• generation of thermal coal
• fossil fuel reserves
• weapons systems/components/support systems/services

The index provider defines what constitutes “involvement” in each restricted
activity. This may be based on percentage of revenue, a defined total revenue
threshold, or any connection to a restricted activity regardless of the amount
of revenue received.

Issuers belonging to sectors with an MSCI ESG rating will only be included in
the Benchmark Index if their issuers have an MSCI ESG rating and the rating is
BBB or higher. An MSCI ESG rating is designed to measure an issuer's resilience
to long-term industry material ESG risks and how well it manages ESG risks and
opportunities relative to industry peers. The index provider may consider the
following environmental themes when determining an issuer’s ESG score as part of
the ESG rating methodology: climate change mitigation based on greenhouse gas
emissions, waste and other emissions, land use and biodiversity. The index
provider may also consider the following social themes when determining an
issuer’s ESG score as part of the ESG rating methodology: access to basic
services, community relations, data privacy and security, human capital, health
and safety and product governance. The MSCI ESG rating methodology recognises
that certain environmental and social issues are more material based on the type
of activity that the issuer is involved in by weighting the issues differently
in the scoring methodology. Those issuers with higher MSCI ESG scores are
determined by the index provider to be those issuers that may be better
positioned to manage future ESG-related challenges and risks compared to their
industry peers.

The Benchmark Index also excludes issuers with a ‘red’ MSCI ESG controversy flag
(based on an MSCI controversy score). An MSCI controversy score measures an
issuer’s involvement (or alleged involvement) in serious controversies based on
an assessment of an issuer’s operations and/or products which are deemed to have
a negative ESG impact. An MSCI controversy score may consider involvement in
adverse impact activities in relation to environmental issues such as
biodiversity and land use, energy and climate change, water stress, toxic
emissions and waste issues. An MSCI controversy score may also consider
involvement in adverse impact activities in relation to social issues such as
human rights, labour management relations, discrimination and workforce
diversity.

For more information on where details of the methodology of the Benchmark Index
can be found see see 'Section L - Designated reference benchmark.'

D. Investment strategy

The investment policy of the Fund is to invest in a portfolio of fixed income
securities that as far as possible and practicable consists of the component
securities of the Benchmark Index and thereby comply with the ESG
characteristics of its Benchmark Index. The index methodology of its Benchmark
Index is described above see 'Section C - Environmental or social
characteristics of the fund.'

By investing in the constituents of its Benchmark Index, the Fund’s investment
strategy enables it to comply with the ESG requirements of its Benchmark Index
as determined by the index provider. In the event that any investments cease to
comply, the Fund may continue to hold such investments only until such time as
the relevant securities cease to form part of the Benchmark Index and it is
possible and practicable (in the Investment Investment Manager's view) to
liquidate the position.

The Fund may use optimisation techniques in order to achieve a similar return to
the Benchmark Index which means that it is permitted to invest in securities
that are not underlying constituents of the Benchmark Index where such
securities provide similar performance (with matching risk profile) to certain
securities that make up the Benchmark Index. If the Fund does so, its investment
strategy is to invest only in issuers in the Benchmark Index or in issuers that
meet the ESG requirements of the Benchmark Index at the time of purchase. If
such securities cease to comply with the ESG requirements of the Benchmark
Index, the Fund may hold such securities only until the next portfolio rebalance
and when it is possible and practicable (in the Investment Investment Manager's
view) to liquidate the position.

The strategy is implemented at each portfolio rebalance of the Fund, which
follows the index rebalance of its Benchmark Index.

The binding elements of the investment strategy are that the Fund will invest in
a portfolio of fixed income securities that as far as possible and practicable
consists of the component securities of the Benchmark Index and thereby comply
with the ESG characteristics of its Benchmark Index.

As the Fund is able to use optimisation techniques and may invest in securities
that are not underlying constituents of the Benchmark Index, where it does so,
its investment strategy is to invest only in issuers in the Benchmark Index or
in issuers that meet the ESG requirements of the Benchmark Index at the time of
purchase.

In the event that any investments cease to comply, the Fund may continue to hold
such investments only until such time as the relevant securities cease to form
part of the Benchmark Index and/or it is possible and practicable (in the
Investment Investment Manager's view) to liquidate the position.

Consideration of principal adverse impacts (PAIs) on sustainability factors

The Fund takes into consideration principal adverse impacts on sustainability
factors by tracking the Benchmark Index which incorporates certain ESG criteria
in the selection of index constituents. The Investment Investment Manager has
determined that those principal adverse impacts (PAIs) listed below are
considered as part of the selection criteria of the Benchmark Index at each
index rebalance.

The Fund's annual report will include information on the principal adverse
impacts on sustainability factors set out below:
• Share of investments in companies active in the fossil fuel sector.
• Share of investments in investee companies with sites/operations located in or
near to biodiversity-sensitive areas where activities of those investee
companies negatively affect those areas.
• Tonnes of emissions to water generated by investee companies per million EUR
invested, expressed as a weighted average.
• Tonnes of hazardous waste generated by investee companies per million EUR
invested, expressed as a weighted average.
• Share of investments in investee companies that have been involved in
violations of the UNGC principles or OECD Guidelines for Multinational
Enterprises.
• Share of investments in investee companies involved in the manufacture or
selling of controversial weapons.

Good governance policy

Good governance checks are incorporated within the methodology of the Benchmark
Index. At each index rebalance, the index provider excludes companies from the
Benchmark Index based on an ESG controversy score (which measures an issuer’s
involvement in ESG related controversies) which includes the exclusion of
companies that are classified as violating United Nations Global Compact
principles see 'Section C - Environmental or social characteristics of the
fund.'

E. Proportion of Investments

The Fund seeks to invest in a portfolio of securities that as far as possible
and practicable consists of the component securities of the Benchmark Index.

It is expected that at least 80% of the Fund's assets will be invested in either
securities within the Benchmark Index or in securities that meet the ESG
selection criteria of the Benchmark Index. As such, at each index rebalance, the
portfolio of the Fund will be rebalanced in line with its Benchmark Index so
that at least 80% of the Fund's assets will be aligned with the ESG
characteristics of the Benchmark Index (this includes 10% of the Fund’s assets
that are qualified as sustainable investments) (as determined at that
rebalance).

In the event that any investments cease to comply with the ESG requirements of
the Benchmark Index, the Fund may continue to hold such investments until such
time as the relevant securities cease to form part of the Benchmark Index (or
otherwise cease to meet the ESG selection criteria of the Benchmark Index) and
it is possible and practicable (in the Investment Manager's view) to liquidate
the position.

The assessment of the Fund's investments qualifying as sustainable is determined
on or around each index rebalance, where the Fund's portfolio is rebalanced in
line with its Benchmark Index. Where any investment ceases to qualify as a
sustainable investment between index rebalances, the Fund's holdings in
sustainable investments may fail below the minimum proportion of sustainable
investments.

The Fund may invest up to 20% of its assets in other investments.

The Fund may use derivatives for investment purposes and for the purposes of
efficient portfolio management in connection with the environmental or social
characteristics promoted by the Fund. Where the Fund uses derivatives for
promoting environmental or social characteristics, any ESG rating or analyses
referenced above will apply to the underlying investment.

The Fund does not currently commit to investing more than 0% of its assets in
sustainable investments with an environmental objective aligned with the EU
Taxonomy. The Fund does not currently commit to invest in fossil gas and/or
nuclear energy related activities that comply with the EU Taxonomy.

This Fund does not currently commit to investing more than 0% of its assets in
investments in transitional and enabling activities within the meaning of the
Taxonomy Regulation.

A minimum of 10% of the Fund’s assets will be invested in sustainable
investments. These sustainable investments will be a mix of sustainable
investments with either an environmental objective that is not committed to
align with the EU Taxonomy or a social objective or a combination of the two.
The combination of sustainable investments with an environmental or social
objective may change over time depending on the activities of the issuers within
the Benchmark Index. The assessment of the Fund’s investments qualifying as
sustainable is determined on or around each index rebalance, where the Fund’s
portfolio is rebalanced in line with its Benchmark Index.

Other holdings may include cash, money market funds and derivatives. Such
investments may only be used for the purpose of efficient portfolio management,
except for derivatives used for currency hedging for any currency hedged share
class.

Any ESG exclusionary criteria applied by the index provider will apply only to
the derivatives relating to individual issuers used by the Fund. Derivatives
based on financial indices, interest rates, or foreign exchange instruments will
not be considered against minimum environmental or social safeguards.

F. Monitoring of environmental or social characteristics

Ongoing product integrity monitoring

BlackRock monitors the Fund’s adherence to the environmental and social
characteristics which the Fund seeks to promote. The objective of the Fund is to
track the performance of the Benchmark Index. The environmental and/or social
characteristics of the Fund are embedded into the Benchmark Index methodology
and the Fund is monitored in a manner that seeks to identify exceptions to the
Fund’s sustainable commitments being met as at each rebalance.

BlackRock monitors Fund and index-level data to track the Fund’s adherence to
these characteristics as at each rebalance.

BlackRock also monitors the tracking error of the Fund and reports this to
investors as part of the annual and semi-annual report and accounts. Information
on the anticipated tracking error is also published in the Fund’s prospectus.

G. Methodologies

The Fund seeks to track the performance of the Benchmark Index which
incorporates certain ESG criteria in the selection of constituents, according to
its methodology (outlined above in Section C and detailed in section L).

Methodologies

In addition, the following methodologies are used to measure how the social or
environmental characteristics promoted by the Fund are met:

The Benchmark Index uses MSCI ESG controversy data. For further information,
https://www.msci.com/documents/10199/acbe7c8a-a4e4-49de-9cf8-5e957245b86b

The Benchmark Index uses MSCI ESG rating methodology. For further information,
https://www.msci.com/our-solutions/esg-investing/esg-ratings

The Benchmark Index uses MSCI Business involvement and UNGC screens. For further
information,
https://www.msci.com/documents/1296102/1636401/MSCI_ESG_BIS_Research_Productsheet_April+2015.pdf/babff66f-d1d6-4308-b63d-57fb7c5ccfa9

The Benchmark Index uses additional screens. For further information, please see
the index methodology.

Sustainable Investments Methodology

Sustainable investments are identified based on a four-part assessment:
(i) Economic activity contribution to environmental and/or social objectives;
(ii) Do no significant harm;
(iii) Meets minimum safeguards; and
(iv) Good governance (where relevant)

It is necessary for an investment to meet the four limbs of this test to be
considered a “Sustainable Investment”. Sustainable Investments are subject to a
robust oversight process to ensure that regulatory standards are met.

(i) Economic activity contribution to environmental and/or social objectives

Environmental and social objectives
BlackRock identifies Sustainable Investments which contribute to a range of
environmental and / or social objectives which may include but are not limited
to alternative and renewable energy, energy efficiency, pollution prevention or
mitigation, reuse and recycling, health, nutrition, sanitation and education and
the UN Sustainable Development Goals and other sustainability-related frameworks
(together the “Environmental and Social Objectives”).

Economic activity assessment
An investment will be a Sustainable Investment (subject to it satisfying the
other three limbs):

Business activity
• Where 20% or more of its revenue attributable to products and/or services is
systematically mapped as contributing to Environmental and/or Social Objectives
using third-party vendor data.

Business practices
• Where the issuer has set a de-carbonisation target in accordance with the
Science Based Targets initiatives (SBTi) as validated by third-party vendor
data. The SBTi seeks to provide a clearly defined pathway for companies and
financial institutions to reduce greenhouse gas (GHG) emissions to align with
the goals of the Paris Agreement and help prevent the worst impacts of climate
change.

Fixed income securities
• Where a fund invests in a use-of-proceeds bond, such use-of-proceed bond will
be a Sustainable Investment where the use of proceeds substantially contributes
to an Environmental and/or Social Objective as determined by fundamental
assessment.

A fund’s Sustainable Investments may have any or all of the above Environmental
and/or Social Objectives depending on the investment strategy of the fund. In
identifying which underlying holdings are Sustainable Investments, BlackRock may
have regard to the index provider’s assessment of sustainable investments, or
any other exclusionary criteria incorporated within the fund’s benchmark index
methodology.

(ii) Do no significant harm (DNSH)

At each index rebalance, all investments qualifying as sustainable are assessed
against certain minimum environmental and social indicators. As part of the
assessment, companies are assessed on their involvement in activities deemed to
have highly negative environmental and social impacts. Where a company has been
identified as being involved in activities with highly negative environmental
and social impacts, it shall not be eligible as a sustainable investment.

Where a fund invests in use of proceeds bonds, such as green bonds, the
assessment will be conducted at an issuance level based on the use of the
proceeds of the bonds which must be formally and exclusively applied to promote
climate or other environmental or social sustainability purposes. In addition,
certain minimum safeguards and eligibility exclusions are incorporated in the
selection of green bonds to avoid exposure to bonds associated with activities
deemed to have highly negative environmental and societal impacts

Following this assessment, the following investments shall not qualify as
Sustainable Investments: (1) companies deemed to be deriving at least 1% of
their revenue from thermal coal which is significantly carbon intensive and a
major contributor to greenhouse gas emissions (taking into account indicators
relating to GHG emissions) (2) companies that have been deemed to be involved in
severe ESG related controversies (taking into account indicators relating to
greenhouse gas emissions, biodiversity, water, waste and social and employee
matters), and (3) companies which are deemed to be lagging industry peers based
on their high exposure and failure to manage significant ESG risks (taking into
account indicators relating to greenhouse gas emissions, biodiversity, water,
waste, unadjusted gender pay gap and board gender diversity).

In addition, companies which are classified as violating or are at risk of
violating commonly accepted international norms and standards, enshrined in the
United Nations Global Compact (UNGC) Principles, the Organisation for Economic
Co-operation and Development (OECD) Guidelines for Multinational Enterprises,
the UN Guiding Principles on Business and Human Rights (UNGPs) and their
underlying conventions shall not qualify as Sustainable Investments. Companies
determined to have any tie to controversial weapons (taking into account
indicators concerning ties to controversial weapons) shall not qualify as
Sustainable Investments.

(iii) Meet minimum safeguards

Issuers which are classified as violating or are at risk of violating commonly
accepted international norms and standards, enshrined in the UNGC Principles,
the OECD Guidelines for Multinational Enterprises, the UNGPs and their
underlying conventions shall not qualify as Sustainable Investments.

Good Governance

Good governance checks are incorporated within the methodology of the Benchmark
Index. At each index rebalance, the index provider excludes companies from the
Benchmark Index based on an ESG controversy score (which measures an issuer’s
involvement in ESG related controversies) and excludes companies that are
classified as violating UNGC principles.

H. Data sources and processing

Data Sources

BlackRock Portfolio Managers have access to research, data, tools, and analytics
to integrate ESG insights into their investment process. Aladdin is the
operating system that connects the data, people, and technology necessary to
manage portfolios in real time, as well as the engine behind BlackRock’s ESG
analytics and reporting capabilities. BlackRock’s Portfolio Managers use Aladdin
to make investment decisions, monitor portfolios and to access index information
that informs the investment process to attain ESG characteristics of the Fund.

ESG datasets are sourced from external third-party data providers and index
providers, including but not limited to MSCI, Sustainalytics, Refinitiv, S&P and
Clarity AI. These datasets may include headline ESG scores, carbon emissions
data, business involvement metrics or controversies and have been incorporated
into Aladdin tools that are available to Portfolio Managers and employed in
BlackRock investment strategies. Such tools support the full investment process,
from research, to portfolio construction and modelling, to reporting.

Measures taken to ensure Data Quality

We assess ESG providers and data across five core areas outlined below:
1. Data Collection: this includes but is not limited to assessing the data
providers underlying data sources, technology used to capture data, process to
identify misinformation and any use of machine learning or human data collection
approaches. We will also consider planned improvements.
2.Data Coverage: our assessment includes but is not limited to the extent to
which a data package provides coverage across our investible universe of issuers
and asset classes. This will include consideration of the treatment of parent
companies and their subsidiaries as well as use of estimated data or reported
data.
3. Methodology: our assessment includes but is not limited consideration of the
third-party providers methodologies employed, including considering the
collection and calculation approaches, alignment to industry or regulatory
standards or frameworks, materiality thresholds and their approach to data gaps.
4. Data Verification: our assessment will include but is not limited to the
third-party providers approach to verification of data collected and quality
assurance processes including their engagement with issuers.
5. Operations: we will assess a variety of aspects of a data vendors’
operations, including but not limited to their policies and procedures
(including consideration of any conflicts of interest) the size and experience
of their data research teams, their training programs, and their use of
third-party outsourcers.

Additionally, BlackRock, actively participates in any relevant provider
consultations regarding proposed changes to methodologies as it pertains to
third party data sets or index methodologies and submits comprehensive feedback
and recommendations to data provider technical teams. BlackRock often has
ongoing engagement with ESG data providers including index providers to keep
abreast of industry developments.

How data is processed

At BlackRock, our internal processes are focused on delivering high-quality
standardised and consistent data to be used by investment professionals and for
transparency and reporting purposes. Data, including ESG data, received through
our existing interfaces, and then processed through a series of quality control
and completeness checks which seeks to ensure that data is high-quality data
before being made available for use downstream within BlackRock systems and
applications, such as Aladdin. BlackRock’s integrated technology enables us to
compile data about issuers and investments across a variety of environmental,
social and governance metrics and a variety of data providers and make those
available to investment teams and other support and control functions such as
risk management.

Use of Estimated Data

BlackRock strives to capture as much reported data from companies via 3rd party
data providers as practicable, however, industry standards around disclosure
frameworks are still evolving, particularly with respect to forward looking
indicators. As a result, in certain cases we rely on estimated or proxy measures
from data providers to cover our broad investible universe of issuers. Due to
current challenges in the data landscape, while BlackRock relies on material
amount of estimated data across our investible universe, the levels of which may
vary from data set to data set, we seek to ensure that use of estimates is in
line with regulatory guidance and that we have necessary documentation and
transparency from data providers on their methodologies. BlackRock recognizes
the importance in improving its data quality and data coverage and continues to
evolve the data sets available to its investment professionals and other teams.
Where required by local country-level regulations, funds may state explicit data
coverage levels. BlackRock seeks to understand the use of estimated data in
index methodologies and ensure that their approaches are robust and in line with
applicable regulatory requirements and index methodologies.

I. Limitations to methodologies and data

Limitations to Methodology

Sustainable investing is an evolving space, both in terms of industry
understanding but also the regulatory frameworks on both a regional and global
basis. BlackRock continues to monitor developments in the EU's ongoing
implementation of its framework for sustainable investing and its investment
methodologies seeking to ensure alignment as the regulatory environment changes.
As a result, BlackRock may update these disclosures, and the methodologies and
sources of data used, at any time in the future as market practice evolves or
further regulatory guidance becomes available.

Screening of a Benchmark Index against its ESG criteria is generally carried out
by an index provider only at index rebalances. Companies which have previously
met the screening criteria of a Benchmark Index and have therefore been included
in the Benchmark Index and the Fund, may unexpectedly or suddenly be impacted by
an event of serious controversy which negatively impacts their price and, hence,
the performance of the Fund. Where these companies are existing constituents of
the Benchmark Index, they will remain in the Benchmark Index and therefore
continue to be held by the Fund until the next scheduled rebalancing (or
periodic review) when the relevant company ceases to form part of the Benchmark
Index and it is possible and practicable (in the Investment Manager’s view) to
liquidate the position. A Fund tracking such Benchmark Index may therefore cease
to meet the ESG criteria between index rebalances (or index periodic reviews)
until the Benchmark Index is rebalanced back in line with its index criteria, at
which point the Fund will also be rebalanced in line with its Benchmark Index.
Similarly index methodologies that commit to investing in a minimum percentage
of Sustainable Investments may also fall below that level in between rebalances
but will be brought back into line at the point of rebalance (or as soon as
practicable thereafter).

Limitations in relation to the data sources are noted below.

Limitations to Data

ESG data sets are constantly changing and improving as disclosure standards,
regulatory frameworks and industry practice evolve. BlackRock continues to work
with a broad range of market participants to improve data quality.

Whilst each ESG metric may come with its own individual limitations, data
limitations may broadly be considered to include, but not be limited to:
• Lack of availability of certain ESG metrics due to differing reporting and
disclosure standards impacting issuers, geographies, or sectors.
• Nascent statutory corporate reporting standards regarding sustainability
leading to differences in the extent to which companies themselves can report
against regulatory criteria and therefore some metric coverage levels may be
low.
• Inconsistent use and levels of reported vs estimated ESG data across different
data providers, taken at varied time periods which makes comparability a
challenge.
• Estimated data by its nature may vary from realized figures due to the
assumptions or hypothesis employed by data providers.
• Differing views or assessments of issuers due to differing provider
methodologies or use of subjective criteria. • Most corporate ESG reporting, and
disclosure takes place on an annual basis and takes significant time to produce
meaning that this data is produced on a lag relative to financial data. There
may also be inconsistent data refresh frequencies across different data
providers incorporating such data into their data sets.
• Coverage and applicability of data across asset classes and indicators may
vary.
• Forward looking data, such as climate related targets may vary significantly
from historic and current point in time metrics.

For more information about how metrics that are presented with sustainability
indicators are calculated, please see the Fund's annual report.

Sustainable Investments and Environmental and Social criteria

Sustainable investing and understanding of sustainability is evolving along with
the data environment. Industry participants, including index provider face
challenges in identifying a single metric or set of standardized metrics to
provide a complete view on a company or an investment. BlackRock has therefore
established a framework to identify sustainable investments, taking into account
the regulatory requirements and index provider methodologies.

BlackRock leverages third-party index provider methodologies and data in
assessing whether investments cause significant harm and have good governance
practices. There may be some circumstances where data is unavailable,
incomplete, or inaccurate. Despite reasonable efforts, information may not
always be available in which case an assessment will be made by the index
provider based on their knowledge of the investment or industry. In certain
cases, data may reflect actions that issuers may have taken only after the fact,
and do not reflect all potential instances of significant harm.

BlackRock undertakes thorough due diligence on index provider sustainable
investment methodologies to ensure that they align with BlackRock’s views on
Sustainable Investments.

J. Due Diligence

K. Engagement Policies

The Fund

The Fund does not use engagement as a means of meeting its binding commitments
to environmental or social characteristics or sustainable investment objectives.
The Investment Manager does not perform direct engagement with the companies /
issuers within the index but does engage directly with the index and data
providers to ensure better analytics and stability in ESG metrics.

General

Engagement with companies in which we invest our clients’ assets occurs at
multiple levels within BlackRock.

Where engagement is specifically identified by a particular portfolio management
team as one of the means by which they seek to demonstrate a commitment to
environment, social and governance issues within the context of SFDR, the
methods by which the effectiveness of such engagement policy and the ways in
which such an engagement policy may be adapted in the event that they do not
achieve the desired impact (usually expressed as a reduction in specified
principal adverse indicators) would be described in the prospectus and website
disclosures particular to that fund.

Where investment teams chooses to leverage engagement, this can take a variety
of forms but, in essence, the portfolio management team would seek to have
regular and continuing dialogue with executives or board directors of engaged
investee companies to advance sound governance and sustainable business
practices targeted at the identified ESG characteristics and principal adverse
indicators, as well as to understand the effectiveness of the company’s
management and oversight of activities designed to address the identified ESG
issues. Engagement also allows the portfolio management team to provide feedback
on company practices and disclosures.

Where a relevant portfolio management team has concerns about a company’s
approach to the identified ESG characteristics and/or principal adverse
indicators, they may choose to explain their expectations to the company’s board
or management and may signal through voting at general meetings that they have
outstanding concerns, generally by voting against the re-election of directors
they view as having responsibility for improvements in the identified ESG
characteristics or principal adverse indicators.

Separate from the activities of any particular portfolio management team, at the
highest level, as part of its fiduciary approach, BlackRock has determined that
it is in the best long-term interest of its clients to promote sound corporate
governance as an informed, engaged shareholder. At BlackRock, this is the
responsibility of BlackRock Investment Stewardship. Principally through the work
of BIS team, BlackRock meets the requirements in the Shareholder Rights
Directive II (‘SRD II”) relating to engagement with public companies and other
parties in the investment ecosystem. A copy of BlackRock’s SRD II engagement
policy can be found at
https://www.blackrock.com/corporate/literature/publication/blk-shareholder-rights-directiveii-engagement-policy-2022.pdf.

BlackRock’s approach to investment stewardship is outlined in the BIS Global
Principles and market-level voting guidelines. The BIS Global Principles set out
our stewardship philosophy and our views on corporate governance and sustainable
business practices that support long-term value creation by companies. We
recognize that accepted standards and norms of corporate governance differ
between markets; however, we believe there are certain fundamental elements of
governance practice that are intrinsic globally to a company’s ability to create
long-term value. Our market-specific voting guidelines provide detail on how BIS
implements the Global Principles – taking into consideration local market
standards and norms – and inform our voting decisions in relation to specific
ballot items for shareholder meetings. BlackRock’s overall approach to
investment stewardship and engagement can be found at:
https://www.blackrock.com/uk/professionals/solutions/shareholder-rights-directive
and https://www.blackrock.com/corporate/about-us/investment-stewardship

In undertaking its engagement, BIS may focus on particular ESG themes, which are
outlined in BlackRock’s voting priorities
https://www.blackrock.com/corporate/literature/publication/blk-stewardship-priorities-final.pdf

L. Designated reference benchmark

This Fund seeks to achieve the environmental and social characteristics it
promotes by tracking the performance of the Bloomberg MSCI US Corporate
Sustainable SRI Index, its Benchmark Index, which incorporates the index
provider’s ESG selection criteria.

At each index rebalance, the index provider applies the ESG selection criteria
to the Bloomberg US Aggregate Corporate Index to exclude issuers that do not
meet such ESG criteria.

At each index rebalance (or as soon as reasonably possible and practicable
thereafter), the portfolio of the Fund is also rebalanced in line with its
Benchmark Index.

As a result of the application of the ESG selection criteria of the Benchmark
Index, the portfolio of the Fund is expected to be reduced compared to the
Bloomberg US Aggregate Corporate Index, a broad market index comprised of fixed
income securities.

The methodology of the Fund’s Benchmark Index can be found on the index
provider’s website at:
https://assets.bwbx.io/documents/users/iqjWHBFdfxIU/rC1vsJVzNcIc/v0

Further details of the Fund's Benchmark Index (including its constituents) are
also available on the index provider’s website at:
https://www.bloombergindices.com/bloomberg-indices/

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RATINGS

REGISTERED LOCATIONS

* Austria

* Czech Republic

* Denmark

* Finland

* France

* Germany

* Ireland

* Italy

* Liechtenstein

* Luxembourg

* Netherlands

* Norway

* Poland

* Slovak Republic

* Spain

* Sweden

* Switzerland

* United Kingdom

HOLDINGS

* Top Issuers
* All

as of 02/Jun/2023

Issuer Weight (%) BANK OF AMERICA CORP 3.58 JPMORGAN CHASE & CO 3.16 MORGAN
STANLEY 2.40 CITIGROUP INC 2.09 GOLDMAN SACHS GROUP INC/THE 2.09

Issuer Weight (%) APPLE INC 1.68 HSBC HOLDINGS PLC 1.62 COMCAST CORPORATION 1.62
VERIZON COMMUNICATIONS INC 1.55 AT&T INC 1.54

as of 02/Jun/2023 31/May/2023 31/Mar/2023 30/Dec/2022

Issuer Ticker Name Sector Asset Class Market Value Weight (%) Notional Value
Nominal Par Value ISIN Price Location Exchange Duration Maturity Coupon (%)
Market Currency Effective Date

Download Holdings
Detailed Holdings and Analytics contains detailed portfolio holdings information
and select analytics.

EXPOSURE BREAKDOWNS

* Sector
* Geography
* Maturity
* Credit Quality

as of 02/Jun/2023

% of Market Value

TypeFund
Banking
28.25
Consumer Non-Cyclical
15.52
Technology
12.95
Communications
8.98
Consumer Cyclical
8.19
Insurance
4.84
Capital Goods
4.24
Energy
3.72
Reits
2.66
Electric
2.58
Basic Industry
2.31
Transportation
2.30

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CHART

Bar chart with 12 bars.
The chart has 1 X axis displaying categories.
The chart has 1 Y axis displaying values. Range: 0 to 30.

Created with Highcharts 8.2.0Fund

End of interactive chart.

* Locations

as of 02/Jun/2023

% of Market Value

Type Fund

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Geographic exposure relates principally to the domicile of the issuers of the
securities held in the product, added together and then expressed as a
percentage of the product’s total holdings. However, in some instances it can
reflect the location where the issuer of the securities carries out much of
their business.

as of 02/Jun/2023

% of Market Value

Type Fund

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as of 02/Jun/2023

% of Market Value

Type Fund

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Credit quality ratings on underlying securities of the fund are received from
S&P, Moody’s and Fitch and converted to the equivalent S&P major rating
category. This breakdown is provided by BlackRock and takes the median rating of
the three agencies when all three agencies rate a security the lower of the two
ratings if only two agencies rate a security and one rating if that is all that
is provided. Unrated securities do not necessarily indicate low quality. Below
investment-grade is represented by a rating of BB and below. Ratings and
portfolio credit quality may change over time.

Allocations are subject to change.

SECURITIES LENDING

Securities lending is an established and well regulated activity in the
investment management industry. It involves the transfer of securities (such as
shares or bonds) from a Lender (in this case, the iShares fund) to a third-party
(the Borrower). The Borrower will give the Lender collateral (the Borrower’s
pledge) in the form of shares, bonds or cash, and will also pay the Lender a
fee. This fee provides additional income for the fund and thus can help to
reduce the total cost of ownership of an ETF.

At BlackRock, securities lending is a core investment management function with
dedicated trading, research and technology capabilities. The lending programme
is designed to deliver superior absolute returns to clients, whilst maintaining
a low risk profile. Funds participating in securities lending retain 62.5% of
the income, while BlackRock receives 37.5% of the income and covers all the
operational costs resulting from securities lending transactions.

* Lending Summary
* Collateral Snapshot
* Collateral Matrix

Sorry, no Lending Summary data available.
The above table summarises the lending data available for the fund.

The information in the Lending Summary table will not be displayed for the funds
that have participated in securities lending for less than 12 months. The
figures shown relate to past performance. Past performance is not a reliable
indication of current or future results.
BlackRock’s policy is to disclose performance information quarterly subject to a
one-month delay. This means that returns from 01/01/2019 to 31/12/2019 can be
publicly disclosed from 01/02/2020.

Maximum on-loan figure may increase or decrease over time.

With securities lending there is a risk of loss should the borrower default
before the securities are returned, and due to market movements, the value of
collateral held has fallen and/or the value of the securities on loan has risen.

as of 02/Jun/2023

Ticker Name Asset Class Weight % ISIN SEDOL Exchange Location

Download Collateral Snapshot
Collateral Holdings shown on this page are provided on days where the fund
participating in securities lending had an open loan.

The information in the Collateral Holdings table relates to securities obtained
in the collateral basket under the securities lending programme for the fund in
question. The information contained in this material is derived from proprietary
and non-proprietary sources deemed by BlackRock to be reliable, is not
necessarily all inclusive and is not guaranteed as to accuracy. Reliance upon
information in this material is at the sole discretion of the reader. The
primary risk in securities lending is that a borrower will default on their
commitment to return lent securities while the value of the liquidated
collateral does not exceed the cost of repurchasing the securities and the fund
suffers a loss in respect of the short-fall.

The below table shows the Loan/Collateral Combinations and Collateral Levels for
our European Lending funds.

Collateral Types Loan Type Equities Government, Supranational and Agency Bonds
Cash (Not for Reinvestment) Equities 105%-112% 105%-106% 105%-108% Government
Bonds 110%-112% 102.5%-106% 102.5%-105% Corporate Bonds 110%-112% 104%-106%
103.5%-105%

We also accept selected physically replicating Equity, Government Bond, Credit
and Commodity ETFs as collateral.

Collateral parameters depend on the collateral and the loan combination, and the
over collateralisation level may range from 102.5% to 112%. In this context,
“Over Collateralisation” means that the aggregate market value of collateral
taken will exceed the overall on-loan value. Collateral parameters are reviewed
on an ongoing bases and are subject to change.
With securities lending there is a risk of loss should the borrower default
before the securities are returned, and due to market movements, the value of
collateral held has fallen and/or the value of the securities on loan has risen.

LISTINGS

Exchange Ticker Currency Listing Date SEDOL Bloomberg Ticker RIC WKN

Exchange
Ticker
Currency
Listing Date
SEDOL
Bloomberg Ticker
RIC
WKN
Bolsa Institucional de Valores SUOA MXN 09/Jun/2020 BMHHHY SUOAN MM - - Euronext
Amsterdam SUOA USD 05/Mar/2020 BK6KYM3 SUOA NA SUOA.AS A2PY8F SIX Swiss Exchange
SUOA USD 16/Mar/2020 BLP5244 - SUOA.S A2PY8F Xetra 5UOA EUR 26/Mar/2020 BLQVVV1
- 5UOA.DE A2PY8F

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PRIIPS PERFORMANCE SCENARIOS

The EU Packaged Retail and Insurance-Based Products Regulation (PRIIPs)
prescribes the calculation methodology, and publication of the outcomes, of four
hypothetical performance scenarios regarding how the product may perform under
certain conditions and for such to be published on a monthly basis. The figures
shown include all the costs of the product itself, but may not include all the
costs that you pay to your advisor or distributor. The figures do not take into
account your personal tax situation, which may also affect how much you get
back. What you will get from this product depends on future market performance.
Market developments in the future are uncertain and cannot be accurately
predicted.
Recommended holding period : 3 years
Example Investment USD 10,000.00
as of 30/Apr/2023 31/Mar/2023 28/Feb/2023 31/Jan/2023 31/Dec/2022 31/Mar/2022

Scenario
If you exit after 1 year
If you exit after 3 years

Minimum

There is no minimum guaranteed return. You could lose some or all of your
investment.

Stress

What you might get back after costs
Average return each year
7,320 USD
-26.8%
7,050 USD
-11.0%

Unfavourable

What you might get back after costs
Average return each year
8,110 USD
-18.9%
8,690 USD
-4.6%

Moderate

What you might get back after costs
Average return each year
10,290 USD
2.9%
11,150 USD
3.7%

Favourable

What you might get back after costs
Average return each year
11,510 USD
15.1%
12,450 USD
7.6%

The stress scenario shows what you might get back in extreme market
circumstances.

Testing missing data Missing average annual returns data

LITERATURE

*
iShares $ Corp Bond ESG UCITS ETF USD (Acc) - PRIIP
*
Factsheet
*
iShares II plc - Prospectus (English)
*
iShares II plc - Prospectus Addendum (English)
*
iShares II plc - Annual Report (English)
*
iShares II plc - Annual Report (English - Switzerland)
*
iShares II plc - Annual Report (Swiss English)
*
iShares II plc - Annual Report (English)
*
iShares II PLC Annual Report (Swiss German)
*
iShares II PLC Annual Report (Swiss English)
*
iShares II PLC Annual Report (English)
*
iShares II plc - Annual Report (English)

See all documents

If the Fund invests in any underlying fund, certain portfolio information,
including sustainability characteristics and business-involvement metrics,
provided for the Fund may include information (on a look-through basis) of such
underlying fund, to the extent available.

BlackRock Portfolio Managers have access to research, data, tools, and analytics
to integrate ESG insights into their investment process. Aladdin is the
operating system that connects the data, people and technology necessary to
manage portfolios in real time, as well as the engine behind BlackRock’s ESG
analytics and reporting capabilities. BlackRock’s Portfolio Managers use Aladdin
to make investment decisions, monitor portfolios and to access material ESG
insights that can inform the investment process to attain ESG characteristics of
the fund.

ESG datasets are sourced from external third-party data providers, including but
not limited to MSCI and Sustainalytics. These datasets include headline ESG
scores, carbon data, business involvement metrics or controversies and have been
incorporated into Aladdin tools that are available to Portfolio Managers. Such
tools support the full investment process, from research, to portfolio
construction and modeling, to reporting.

In addition to having access to these datasets in Aladdin, where applicable,
Portfolio Managers could also supplement these sources with sell side research,
non-government organization reports, company reported data, fundamental research
insights prepared by BlackRock equity and credit investment research teams as
well as the BlackRock Investment Stewardship team.

In order to offer scalable solutions to investors across different asset classes
and investment styles, BlackRock has developed a set of exclusionary screens,
“BlackRock EMEA Baseline Screens”, that seeks to address a majority of our
clients’ requests for exclusions.

As an example, these exclusionary screens eliminate holdings with more than de
minimis exposure to certain sectors/industries including but not limited to
controversial weapons, nuclear weapons, fossil fuels, civilian firearms,
tobacco, and UN Global Compact violators. BlackRock EMEA Baseline Screens are
applied on all new active funds in Europe, Middle East and Africa (“EMEA”), on a
comply or explain basis by our portfolio management teams within our product
governance structure. For all new sustainable index strategies in EMEA,
BlackRock works with the index provider to reflect the same screens in the
custom index. Qualified investors with separate accounts can have exclusionary
screens set with specific criteria as determined by the investor. The definition
of the baseline screens and its adoption into sustainable screened funds is
governed by the Sustainable Product Council (“SPC”). The current default ESG
data provider for these Baseline Screens is MSCI but investment teams can choose
to use Sustainalytics or other custom data sources as required.

For further SFDR related fund/sub-fund level disclosures, please refer to the
fund/ sub-fund specific Investment Objective and Policy section(s) and benchmark
information in the prospectus that is available on the website.

IMPORTANT INFORMATION

Review the MSCI methodology behind the Sustainability Characteristics and
Business Involvement metrics: 1ESG Fund Ratings; 2Index Carbon Footprint
Metrics; 3Business Involvement Screening Research; 4ESG Screened Index
Methodology; 5ESG Controversies; 6MSCI Implied Temperature Rise

For funds with an investment objective that include the integration of ESG
criteria, there may be corporate actions or other situations that may cause the
fund or index to passively hold securities that may not comply with ESG
criteria. Please refer to the fund’s prospectus for more information. The
screening applied by the fund's index provider may include revenue thresholds
set by the index provider. The information displayed on this website may not
include all of the screens that apply to the relevant index or the relevant
fund. These screens are described in more detail in the fund’s prospectus, other
fund documents, and the relevant index methodology document.

Certain information contained herein (the “Information”) has been provided by
MSCI ESG Research LLC, a RIA under the Investment Advisers Act of 1940, and may
include data from its affiliates (including MSCI Inc. and its subsidiaries
(“MSCI”)), or third party suppliers (each an “Information Provider”), and it may
not be reproduced or redisseminated in whole or in part without prior written
permission. The Information has not been submitted to, nor received approval
from, the US SEC or any other regulatory body. The Information may not be used
to create any derivative works, or in connection with, nor does it constitute,
an offer to buy or sell, or a promotion or recommendation of, any security,
financial instrument or product or trading strategy, nor should it be taken as
an indication or guarantee of any future performance, analysis, forecast or
prediction. Some funds may be based on or linked to MSCI indexes, and MSCI may
be compensated based on the fund’s assets under management or other measures.
MSCI has established an information barrier between equity index research and
certain Information. None of the Information in and of itself can be used to
determine which securities to buy or sell or when to buy or sell them. The
Information is provided “as is” and the user of the Information assumes the
entire risk of any use it may make or permit to be made of the Information.
Neither MSCI ESG Research nor any Information Party makes any representations or
express or implied warranties (which are expressly disclaimed), nor shall they
incur liability for any errors or omissions in the Information, or for any
damages related thereto. The foregoing shall not exclude or limit any liability
that may not by applicable law be excluded or limited.

Regulatory Information
iShares plc, iShares II plc, iShares III plc, iShares IV plc, iShares V plc,
iShares VI plc and iShares VII plc (together 'the Companies') are open-ended
investment companies with variable capital having segregated liability between
their funds organised under the laws of Ireland and authorised by the Central
Bank of Ireland. BlackRock has not considered the suitability of this investment
against your individual needs and risk tolerance. Any decision to invest must be
based solely on the information contained in the Company’s Prospectus, Key
Investor Information Document and the latest half-yearly report and unaudited
accounts and/or annual report and audited accounts. Investors should read the
fund specific risks in the Key Investor Information Document and the Company’s
Prospectus. We recommend you seek financial advice prior to investing.

For investors in Switzerland
The iShares ETFs are domiciled in Ireland, Switzerland and Germany. BlackRock
Asset Management Schweiz AG, Bahnhofstrasse 39, CH-8001 Zurich, is the Swiss
Representative and State Street International GmbH, Munich, Zurich Branch,
Beethovenstrasse 19, CH-8002 Zürich the Swiss Paying Agent for the foreign
iShares ETFs registered in Switzerland.The Prospectus, the Prospectus with
integrated fund contract, the Key Investor Information Document, the general and
particular conditions, the Articles of Incorporation, the latest and any
previous annual and semi-annual reports of the iShares ETFs domiciled or
registered in Switzerland are available free of charge from BlackRock Asset
Management Schweiz AG. Investors should read the fund specific risks in the Key
Investor Information Document and the Prospectus. 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. Past performance is not a guide to current or future performance.
The value of investments and the income from them can fall as well as rise and
is not guaranteed. You may not get back the amount originally invested. Changes
in the rates of exchange between currencies may cause the value of investments
to diminish or increase. Fluctuation may be particularly marked in the case of a
higher volatility fund and the value of an investment may fall suddenly and
substantially. Levels and basis of taxation may change from time to time. © 2023
BlackRock, Inc. All Rights reserved. BLACKROCK, BLACKROCK SOLUTIONS, iSHARES,
BUILD ON BLACKROCK, SO WHAT DO I DO WITH MY MONEY and the stylized i logo 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.

Restricted Investors
This document is not, and under no circumstances is to be construed as an
advertisement or any other step in furtherance of a public offering of shares in
the United States or Canada. This document is not aimed at persons who are
resident in the United States, Canada or any province or territory thereof,
where the companies/securities are not authorised or registered for distribution
and where no prospectus has been filed with any securities commission or
regulatory authority. The companies/securities may not be acquired or owned by,
or acquired with the assets of, an ERISA Plan.

Risk Warnings
Investment in the products mentioned in this document may not be suitable for
all investors. Past performance is not a guide to future performance and should
not be the sole factor of consideration when selecting a product. The price of
the investments may go up or down and the investor may not get back the amount
invested. Your income is not fixed and may fluctuate. The value of investments
involving exposure to foreign currencies can be affected by exchange rate
movements. We remind you that the levels and bases of, and reliefs from,
taxation can change.

BlackRock has not considered the suitability of this investment against your
individual needs and risk tolerance. The data displayed provides summary
information, investment should be made on the basis of the relevant Prospectus
which is available from your Broker, Financial Adviser or BlackRock Advisors
(UK) Limited. We recommend you seek independent professional advice prior to
investing.

In respect of the products mentioned this document is intended for information
purposes only and does not constitute investment advice or an offer to sell or a
solicitation of an offer to buy the securities described within. This document
may not be distributed without authorisation from the manager.

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www.ishares.com Open in urlscan Pro 104.102.19.39 Public Scan

Form analysis 5 forms found in the DOM

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www.ishares.com Open in urlscan Pro
104.102.19.39 Public Scan

Form analysis
5 forms found in the DOM