investment funds blackrock collective

BlackRock Collective Investment FundsBlackRock Balanced Managed Fund

BlackRock Continental European Equity Tracker Fund

BlackRock Emerging Markets Equity Tracker Fund

BlackRock Fixed Income Tracker Fund

BlackRock Japan Equity Tracker Fund

BlackRock North American Equity Tracker Fund

BlackRock Pacific ex Japan Equity Tracker Fund

BlackRock UK Equity Tracker Fund

Annual Report 1 February 2009 – 31 January 2010

07516BR Feb10

For more information Tel 0800 44 55 22www.blackrock.co.uk

About Us

BlackRock is a premier provider of asset management, risk management, and advisory services toinstitutional, intermediary, and individual clients worldwide. As of 31 December 2009, the firm manages£2.10 trillion across asset classes in separate accounts, mutual funds, other pooled investment vehicles,and the industry-leading iShares® exchange-traded funds.

Through BlackRock Solutions®, the firm offers risk management and advisory services that combinecapital markets expertise with proprietarily-developed analytics, systems, and technology. BlackRockSolutions currently provides risk management and enterprise investment services for £5.65 trillion in assets.

BlackRock serves clients in North and South America, Europe, Asia, Australia, Africa, and the MiddleEast. Headquartered in New York, the firm maintains offices in 24 countries around the world.

Colin Graham, CFA, CAIA, Managing Director, is a lead portfolio manager withinBlackRock’s Multi-Asset Client Solutions (BMACS) group, which is responsible fordeveloping, assembling and managing investment solutions involving multiplestrategies and asset classes. Colin is Co-head of Global Relative Returnstrategies for institutional clients and for Dynamic Multi-Asset retail funds.Colin's service with the firm dates back to 1997, having previously worked in theactuarial department of a leading UK financial services company, and in the Risk,Finance and Insurance practice of one of the largest global consultants.

Debra Jelilian, Managing Director and portfolio manager, is a member of BlackRock’sQuantitative Investments and Transition Management teams, with responsibilityfor index strategies and transition management. Debra joined BlackRock in 1999,having previously worked as a US index fund manager for Bankers Trust, handlingindex fund transition management. Debra earned a BA degree in romancelanguages from Manhattanville College in 1990.*

Panayotis (Panos) Ferendinos, CFA, Vice President, and portfolio manager, isa member of BlackRock's Fixed Income Portfolio Management Group, with aprimary responsibility for managing sterling fixed income portfolios. Panos'service with the firm dates back to 1999, during which time he has specialised inmacroeconomic research and analysis for the sterling investment team. Prior tojoining BlackRock, Panos worked for an Italian fixed income broker, having earlierearned a BA degree in law, English & psychology from the University of NatalDurban in 1992, and a BA degree, with honours, in English literature from theUniversity of South Africa in 1993.

* With effect from 23 February 2010, Manus Stapleton assumed responsibility as the new named Manager of all the BlackRock FundManager's QIS/CIF Consensus and Equity Tracker funds.

BlackRock Collective Investment Funds ("the Fund") is organised as an umbrella unit trust scheme comprising the funds (each referred to as a "sub-fund") contained in this report

1

About the Fund ManagersContents

About the Fund Managers 1

Aggregated Accounts 2-11

BlackRock Balanced Managed Fund 12–39

BlackRock Continental European Equity Tracker Fund 40–68

BlackRock Emerging Markets Equity Tracker Fund 69–92

BlackRock Fixed Income Tracker Fund 93–108

BlackRock Japan Equity Tracker Fund 109–138

BlackRock North American Equity Tracker Fund 139–178

BlackRock Pacific ex Japan Equity Tracker Fund 179–208

BlackRock UK Equity Tracker Fund 209–242

Authorised Status 243

Stamp Duty Reserve Tax 243

Statement of Manager’s and Trustee’s Responsibilities 244

Report of the Trustee 244

Report of the Auditors 245-246

Introducing the new BlackRock On 1 December 2009, BlackRock, Inc. and Barclays Global Investors, N.A. combined to create a newindependent company. Operating under the BlackRock name, this new company offers a full range ofsolutions—active management, quantitative and index strategies, iShares ETFs, and sophisticated riskmanagement capabilities. We maintain a firmwide focus on investment excellence through the pursuit ofalpha and efficient beta.

Copies of Manager’s Reports and Prospectus are available on request.

Dealing and Investor Services: 0800 44 55 22www.blackrock.co.uk

2 BlackRock Collective Investment Funds 3

Aggregated Balance Sheet at 31 January 2010

31.1.2010 31.1.2009Notes £ £ £ £

Assets:Investment assets 4,788,827,838 2,980,953,754 – Debtors 7 53,142,833 28,547,143 – Cash and bank balances 8 147,865,644 81,706,246

Total other assets 201,008,477 110,253,389 Total assets 4,989,836,315 3,091,207,143

Liabilities:Investment liabilities (7,028,811) (4,544,000) – Creditors 9 (29,277,816) (46,808,011) – Bank overdraft (133,491) (14)

Total other liabilities (29,411,307) (46,808,025) Total liabilities (36,440,118) (51,352,025)

Net assets attributable to unitholders £4,953,396,197 £3,039,855,118

A J Stenning (Director)E E Tracey (Director)BlackRock Fund Managers Limited23 March 2010

Aggregated Statement of Total Returnfor the year ended 31 January 2010

31.1.2010 31.1.2009Notes £ £ £ £

IncomeNet capital gains/(losses)

during the year 2 860,342,498 (989,264,668) Revenue 3 135,663,850 136,316,564 Expenses 4 (13,287,234) (12,503,670) Finance costs: Interest 6 (120,386) (86,540)

Net revenue before taxation 122,256,230 123,726,354 Taxation 5 (5,568,127) (7,848,204) UK income tax withheld (3,614,822) (3,214,272)

Net revenue after taxation for the year 113,073,281 112,663,878

Total return before distributions 973,415,779 (876,600,790) Finance costs: Distributions 6 (112,661,331) (112,663,878)

Change in net assets attributable tounitholders from investment activities £860,754,448 £(989,264,668)

Aggregated Statement of Change in Net Assets Attributable to Unitholders for the year ended 31 January 2010

31.1.2010 31.1.2009£ £ £ £

Opening net assets attributableto unitholders 3,039,855,118 3,584,883,618

Amounts receivable onissue of units 1,793,490,949 1,224,578,382

Amounts payable on cancellation of units (858,207,451) (894,048,184)

935,283,498 330,530,198 Stamp duty reserve tax (941,939) (839,382) Change in net assets attributable to

unitholders from investment activities 860,754,448 (989,264,668) Retained distribution on accumulation units 118,445,072 114,545,352

Closing net assets attributableto unitholders £4,953,396,197 £3,039,855,118

Comparative figures have been restated for the presentation changes following adoption of the Statement of Recommended Practice forAuthorised Funds issued by the IMA in November 2008 [see Note 1(a)].

(g) Provision for corporation tax is made at the current rate on the excess of taxable revenue overallowable expenses. Provision is made on all material timing differences arising from the differenttreatment of items for accounting and tax purposes. A deferred tax asset is recognised only to theextent that it is considered more likely than not that there will be taxable profits in the futureagainst which the asset can be offset.

(h) The units in each of the funds are accumulation units. All of the net revenue available for distributionat the final accounting year end will be accumulated by the fund with a transfer from revenue tocapital. In order to conduct a controlled dividend flow to unitholders, interim distributions may bemade at the Manager's discretion, up to a maximum of the distributable revenue available for theyear. Should expenses and taxation together exceed revenue, there will be no distribution and theshortfall will be met from capital.

(i) The Fixed Income Tracker Fund has satisfied the qualifying investments tests as specified inS468L ICTA 1988 at all times throughout the distribution period. As such, any revenue available fordistribution will be paid as an interest distribution. All other funds will pay a dividend distribution.

(j) Any transactions in foreign currencies are translated into Sterling at the rates of exchange rulingon the date of any such transaction. Assets and liabilities are translated into Sterling at theexchange rates ruling at the close of business on the last business day of the accounting period.Revenue items in foreign currencies are translated into Sterling at the exchange rate ruling whenrevenue is received.

(k) The investments of the Fund have been valued at market values, defined as fair value, which isusually bid value at close of business on the last business day of the accounting period. Anyunquoted or suspended investments are valued at the Manager's valuation. For over the counterderivatives (e.g. options), market value is determined based on valuation pricing models whichtake into account relevant market inputs as well as the time values, liquidity and volatility factorsunderlying the positions. Amounts due to and from an individual counterparty which falls under alegally enforceable master netting agreement are netted.

(l) Where appropriate, certain permitted financial instruments such as derivatives or forward currencycontracts are used for efficient portfolio management. Where such financial instruments are usedto protect or enhance revenue, the revenue and expenses derived therefrom are included in ‘Revenue’or ‘Expenses’ in the Statement of Total Return. Revenue from over the counter derivatives is receivedin the form of a premiums received on written options. Such premiums are recognised as revenueon a straight line basis over the period of the contract, with the balance recognised as capital. If thecontract is sold or closed out, the unamortised portion and the premium remains in the capital.Where such financial instruments are used to protect or enhance capital, the gains and lossesderived therefrom are included in ‘Net Capital Gains/(Losses) on Investments’ in the Statement of Total Return.

Aggregated Notes to Financial Statementsat 31 January 2010

1. Accounting Policies(a) The financial statements have been prepared in accordance with the Statement of Recommended

Practice (‘SORP’) for Authorised Funds’ issued by the Investment Management Association (IMA)in November 2008.

Previously the requirements of the SORP issued by the IMA in December 2005 had been applied.As a result of this change certain items have been reanalyzed in the Statement of Total Return asset out below. The reanalysis has been treated as a change in Accounting Policies and accordinglythe comparative figures have been restated. The restatements did not change either the totalreturn or net assets attributable to unitholders as presented in the preceding year.

Other gainsOther gains were previously included as a separate line in the Statement of Total Return (2009: £3,585,309) but have now been included in net capital gains (2010: £(3,014,880)).

Transaction ChargesTransaction charges were previously included in the expenses (2009: (£172,879)) but have nowbeen included in net capital gains (2010: £(345,589)).

Manager’s service charge rebatesManager’s service charge rebates were previously shown as a credit in expenses (2009: £2,092,558)but are now shown in revenue (2010: £1,472,405).

(b) Dividends on quoted ordinary shares and preference shares are recognised when the securities arequoted ex- dividend. Where such securities are not quoted, dividends are recognised when they aredeclared. Bank interest is recognised on an accruals basis. Nominal interest on interest bearingsecurities and bank interest are recognised on an accruals basis. Revenue from fixed securities is recognised on an effective interest rate basis. All revenue is recognised at a gross amount thatincludes any withholding taxes but excludes any other taxes such as attributable tax credits.

The Balanced Managed Funds receives manager’s service charge rebates from BlackRock relatedinvestments. These are recognised on an accruals basis and are treated as revenue.

(c) Ordinary stock dividends are recognised wholly as revenue and are based on the market value ofthe shares on the date they are quoted ex-dividend. Where an enhancement is offered, the amountby which the market value of the shares (on the date they are quoted ex-dividend) exceeds thecash dividend is taken to capital. The ordinary element of the stock dividend is treated as revenuebut does not form part of the distribution.

(d) The underlying circumstances behind both special dividends and share buy backs are reviewed ona case by case basis in determining whether the amount is revenue or capital in nature. Amountsrecognised as revenue form part of the distribution. Any tax treatment will follow the accountingtreatment of the principal amount.

(e) Underwriting commission is wholly recognised as revenue when the issue takes place, exceptwhere the Fund is required to take up some or all of the shares underwritten, in which case anappropriate proportion of the commission received is deducted from the cost of those shares.

(f) All expenses, except those relating to the purchase and sale of investments and Stamp DutyReserve Tax, are charged against revenue.

54 BlackRock Collective Investment Funds

Aggregated Notes to Financial Statements continued

2. Net Capital Gains/(Losses) on Investments During the year31.1.2010 31.1.2009

£ £

The net capital gains/(losses) on investments comprise:Gains/(losses) on non-derivative securities 826,519,803 (956,866,097)Gains/(losses) on derivative contracts 32,924,298 (35,710,569)Gains/(losses) on forward currency contracts 4,258,866 (100,432)Other currency (losses)/gains (3,014,880) 3,585,309Transaction costs (345,589) (172,879)

Net Capital gains/(losses) on investments 860,342,498 (989,264,668)

3. Revenue31.1.2010 31.1.2009

£ £

UK dividends 67,222,567 68,711,514Unfranked dividends from UK companies 947,984 110,722Overseas dividends 43,833,579 42,068,151Stock dividends 415,023 –Franked dividends from Collective Investment Schemes – 265,436Unfranked dividends from Collective Investment Schemes – 287,734Interest from UK fixed interest securities 21,233,871 19,239,813Interest from overseas fixed interest securities 433,745 231,266Interest from money market deposits 10,736 76,451Interest from UK bank deposits 202,502 2,458,334Underwriting Commission 7,522 –Manager’s service charge rebate 1,356,321 2,092,558UK REIT dividends – 774,585

Total revenue 135,663,850 136,316,564

4. Expenses31.1.2010 31.1.2009

£ £

Payable to the Manager or associates of the Manager:– Manager's service charge 12,462,003 11,486,873– Registrar's fees 898 769– VAT Refund Registrar's fees (67) (63)

12,462,834 11,487,579

Payable to the Trustee or associates of the Trustee:– Trustee's fees 461,964 412,876

461,964 412,876

Other expenses:– Safe custody fees 278,338 523,655– Audit fee 68,849 62,511– FSA fee 30 –– Legal & professional fees 755 2,670– Risk monitoring fees 8,280 7,050– Other fees 6,184 7,329

362,436 603,215

Total Expenses 13,287,234 12,503,670

5. Taxation(a) Analysis of tax charge for the year

31.1.2010 31.1.2009£ £

Corporation tax 3,589,400 7,455,135Prior year adjustment to corporation tax (333,816) (888)Income tax on Unfranked CIS 17,727 57,547Overseas tax 4,648,306 4,642,950Double Taxation Relief (2,214,033) (4,332,086)

Total current tax charge for the year (see Note 5(b)) 5,707,584 7,822,658

Deferred tax (charge)/credit for the year [see note 5(c)] (139,457) 25,546

Total tax for the year 5,568,127 7,848,204



6. Finance Costs31.1.2010 31.1.2009

£ £

Interim 68,669,013 67,095,276Final 49,776,059 47,450,076

118,445,072 114,545,352Add: Amounts deducted on cancellation of units 6,828,086 9,862,919 Less: Amounts received on issue of units (12,611,827) (11,744,393)

Net distribution for the year 112,661,331 112,663,878Finance costs: interest 120,386 86,540

Total finance costs 112,781,717 112,750,418

Net revenue after taxation for the year 113,073,281 112,663,878Less: non-distributable stock dividends (415,023) –Add: expenses reimbursed by capital 3,073 –

Net distribution for the year 112,661,331 112,663,878

7. Debtors31.1.2010 31.1.2009

£ £

Sales awaiting settlement 4,050,662 3,694,240Amounts receivable for creation of units 24,904,657 8,490,787Currency sales awaiting settlement 7,367,942 3,898,857Corporation tax recoverable 387,866 24,224Income tax recoverable on REIT Dividends 288,983 162,754Overseas tax recoverable 1,755,396 1,401,207Managers fee rebate 285,757 359,211Accrued revenue 14,101,570 10,515,863

Total debtors 53,142,833 28,547,143

8. Cash and Bank Balances31.1.2010 31.1.2009

£ £

Amounts held at futures clearing houses and brokers 18,275,593 17,631,501Cash and bank balances 129,590,051 64,074,745

Total cash and bank balances 147,865,644 81,706,246

(b) Reconciliation of current tax chargeThe tax assessed for the year is lower than the standard rate of corporation tax in the UK for anauthorised unit trust. The differences are explained below:

31.1.2010 31.1.2009£ £

Net revenue before taxation 122,256,230 123,726,354

Corporation tax at 20% (2009: 20%) 24,451,246 24,745,271Effects of:Excess expenses for which no relief taken 21,678 –Expenses not deductable for Tax purposes 615 –Movement in revenue accruals non taxable 268,181 (32,410)Movement in revenue accruals taxable on receipt 29,654 5,066Non taxable stock dividends (83,005) -Double tax relief (2,214,033) (4,332,086)Franked investment revenue at 20% (13,351,463) (13,795,389)Non taxable overseas dividends (4,139,589) –Tax Effect of expense relief (current) – (49,149)Overseas tax 4,648,881 4,644,144Adjustment in respect of prior years corporation tax (327,486) (888)Utilisation of excess expenses – (205,176)Irrecoverable income tax 17,727 57,547Tax deductible interest distributions (3,614,822) (3,214,272)

Total current tax charge for the year (see Note 5(a)) 5,707,584 7,822,658

(c) Deferred tax asset31.1.2010 31.1.2009

£ £

Opening deferred tax balance 173,392 147,846Deferred tax (credit)/charge for the year [see note 5(a)] (139,457) 25,546

Closing deferred tax balance 33,935 173,392

As at 31January 2010, the Fund had surplus management expenses of £108,392 (Prior year: £0). It is unlikely that the Fund willgenerate sufficient taxable profits in the future to utilise these expenses, and therefore a deferred tax asset of £21,679 (Prior year: £0)has not been recognised.


11

9. Creditors31.1.2010 31.1.2009

£ £

Purchases awaiting settlement 15,983,842 36,700,091Amounts payable for cancellation of units 4,179,883 264,009Currency purchases awaiting settlement 3,209,899 3,960,862Accrued Manager's service charge 2,574,562 1,833,877Accrued Registrar's fee 95 138Accrued Trustee's fee 97,496 34,468Accrued Safe custody fees 265,911 172,264Accrued Audit fee 70,179 62,510Accrued FSA fee 30 –Accrued Transaction costs 312,732 172,914Bank interest payable 1,377 –Corporation tax payable 544,945 1,734,430Deferred taxation 33,935 173,392Income tax payable 2,002,930 1,699,056

Total creditors 29,277,816 46,808,011

10. Derivatives and Other Financial Instruments(a) For details see each individual fund.

Currency Exposures(b) For details see each individual fund.

Interest Rate Risk Profile of Financial Assets and Liabilities(c) For details see each individual fund.

Fair Value of Financial Assets and Financial Liabilities(d) There is no material difference between the value of the financial assets and liabilities, as shownin the balance sheet, and their fair value.

11. Contingent LiabilitiesThere were no contingent liabilities at the balance sheet date (2009:Nil)

12. Investment ManagementThe manager has delegated to its associate, BlackRock (Luxembourg) S.A., responsibility forinvestment management of the Fund. BlackRock (Luxembourg) S.A. does not enter into commission sharing agreements.

13. Related Party TransactionsFor details see each individual fund.

14. Portfolio Transaction costsAnalysis of total purchase costs:

31.1.2010 31.1.2010 31.1.2009 31.1.2009£ £ £ £

Purchases in year before stransaction costs 2,012,840,635 1,383,310,771

Commissions and other costs (including stamp duty) 2,575,190 3,523,349

Total purchases costs 2,575,190 3,523,349

Gross purchases total 2,015,415,825 1,386,834,120

Analysis of total sale costs:£ £ £ £

Gross sales before transaction costs 1,034,068,901 945,970,489Commissions and other costs (467,853) (477,510)Total sale costs (467,853) (477,510)

Total sales net of transaction costs 1,033,601,048 945,492,979

15. Non Adjusting Post Balance Sheet EventPlease refer to each fund.



Performance Table

Period of Report Since LaunchOne Year 22.9.2005

to 31.1.2010 to 31.1.2010

The Fund returned:Total Return (with net income reinvested)Accumulation Units +26.5% +13.9%

The Benchmark returned:Total Return (with net income reinvested)Comp Balanced Managed*† +26.4% +17.0%

This Annual Report covers the year ended 31 January 2010, the first six months of which were commentedon in the Interim Report to 31 July 2009. For a copy, please contact us.

*Source: Datastream/Factset/BlackRock. Prior to 10 July 2009 the Collective Investment Funds were known as the Qualified InvestorSchemes. All fund figures quoted are based on bid to bid, dealing prices (the price at which units are sold). †Comprising 55% FTSE AllShare, 25% FTSE Wld ex UK & 20% ML 1-15Y UK Broad (Prior November 2006 UK Gilts All Stocks). Performance is calculated net of fees.

All financial investments involve an element of risk. Therefore, the value of your investment and theincome from it will vary and your initial investment amount cannot be guaranteed. Changes in exchangerates may cause the value of an investment to fluctuate. Past performance is not a guide to futureperformance and should not be the sole factor of consideration when selecting a product.

All figures quoted are based on bid to bid, dealing prices (the price at which units are sold), with net income reinvested. Performance isshown for complete 12 month periods only. * Performance data does not exist for the relevant periods.

Accumulation The final accumulation payable on 31 March 2010 is 0.3721p net per accumulation unit.

Annual performance to most recent quarter end

31.12.2008 31.12.2007 31.12.2006 31.12.2005 31.12.2004to 31.12.2009 to 31.12.2008 to 31.12.2007 to 31.12.2006 to 31.12.2005*

Balanced Managed +25.5% -27.0% +10.7 +9.0 –

BlackRock Balanced Managed FundBlackRock Balanced Managed Fund

Balanced Managed Investment Objective & Policy

The aim of the Fund is to seek to achieve a total return by investment mainly in a global portfolio ofequities and fixed interest securities with an emphasis on the UK. Investment will be made directly intoequities and via other transferable securities giving exposure to such equities. The Fund may also investin permitted money market instruments, permitted deposits, and units in collective investment schemes.Derivatives and forward transactions may be used for hedging purposes and meeting the investmentobjectives of the Fund. The scheme property of the Fund will in all cases be restricted to investment inproperty which is eligible as a permitted link in IPRU (INS), or such other equivalent rules as may replacethem from time to time.

The Fund is a sub-fund of BlackRock Collective Investment Funds , a UCITS scheme established underthe Financial Services Authority's Collective Investment Schemes Sourcebook "the Sourcebook". Prior to 10 July 2009 the Collective Investment Funds were known as the Qualified Investor Schemes (1). TheFund was authorised by the FSA on 21 June 2005 and subsequently launched on 22 September 2005. The Fund was previously known as Merrill Lynch Balanced Managed Fund. It adopted its present namewith effect from 28 April 2008.


would benefit from lower bad debt provisions and asset managers were likely to see fund inflows asinvestors' risk appetites returned to more-normal levels.

Performance was generated across a number of sectors and companies. Among the largest contributorsto relative performance was food service company Compass Group, which has continued to exceed itsown margin targets and has taken market share. BHP Billiton also performed well as industrial metalsprices improved as a result of increased demand, especially from China. Elsewhere, our preference for oil& gas exploration companies, over the oil majors, proved profitable, notably through holdings in Tullow Oiland Cairn Energy, while our bias towards beneficiaries of increasing corporate discretionary spend alsoadded value at the end of the period, with communications technology firm Spirent and British Airwayscontributing.

Fixed income portfolio success driven by strong corporate bond performanceThe performance of the fixed income portfolio continued to be driven primarily by the tightening of creditspreads, where our exposure to financial corporate bonds has aided performance throughout the riskrally prevalent for most of the reporting period. We remain overweight here, but have gradually reducedthe size of our position, as some high-quality names are trading at levels last seen pre-crisis and weakercredits are returning to a fair value range. We still favour credit versus governments, as the carry andyield advantage remains attractive, especially in shorter-dated securities.

The performance of UK government bonds (gilts) was very different, as fiscal concerns mounted forcountries running large budget deficits, including the UK. The Pre-Budget Report did little to address the situation and government bond yields sold off into the end of the year. We have continued to hold anallocation to German government debt at the expense of gilts, which has performed well recently, andhave also added a small position in Greek government bonds as we felt fears over sovereign risk inGreece had reached extreme levels.

The market rally has brought opportunities and challenges, but 2010 to be a recovery year After the recovery in 2009, investors now face a different challenge. The broad financial environment is,we believe, consistent with the recovery theme persisting during 2010, providing the potential for additional,if less spectacular, gains across a range of asset classes. Our central case is that exposure to risk assetsis still warranted, despite the more-limited return potential. We do not expect recessionary pressures tore-emerge, while an environment of moderate economic growth, recovering corporate profits, low interestrates, low inflation and supportive valuations is likely to deliver slow but steady bull markets in equitiesand credit. Progress will be made gradually as markets seek to overcome anxiety over the progress ofeconomic recovery. As such, sensible asset allocations will be those which emphasise diversificationacross asset classes, not over-exposure to a small number of large bets.

The risks are symmetric around our predicted outturn, unlike in 2007 and 2008, when risks were stronglybiased to the downside. The global economy faces two powerful but opposing influences; the level of policystimulus remains a support, but this is offset by the potential for both further retrenchment in privatesector spending should the de-leveraging process persist, and for further financial accidents. Precisecalibration of these effects is difficult, but the central outcome is biased towards recovery. We will continueto allocate risk in a diversified fashion, balancing our exposure to traditional asset classes, such as credit,equities and government bonds, with commodities, Exchange Trade Funds, and derivatives strategies.

* Performance figures quoted are based on bid to bid, dealing prices (the price at which units are sold) and are not the same as the net assetvalue reported in the financial statements which is at close of business. Performance is calculated net of fees.

Balanced Managed Investment Report

The Fund declined and underperformed its benchmark during a difficult periodWe are pleased to report that the BlackRock Balanced Managed Fund gained by 26.5%* during the 12-month reporting period to 31 January 2010. By comparison, the Fund’s composite benchmark rose by26.4%*. Here, we focus on the most recent six months of the year, during which time the Fund gained by 11.9%*, marginally falling behind the benchmark, which returned 12.0%*.

It should be noted that relative annual performance was negatively impacted by the timing differentialbetween the Fund’s valuation point and that of the index.

An all-in-one investment management style serviceBlackRock’s Balanced Managed Fund offers a complete all-in-one investment management style thatprovides an effective way to invest in stocks and shares without the worry and time involved in managing yourown portfolio. The Fund aims to generate a long-term total return by balancing capital growth and income.

Financial market conditions during the reporting period have fundamentally differed from thoseprevailing in 2008 In 2008, many asset classes, with the exception of government bonds, delivered significant negativereturns to investors. At that time, the combination of recession, de-leveraging and extreme financialstress had delivered an exceptionally volatile environment. Valuations of risky assets, particularly equitiesand corporate credit, had nevertheless become much more attractive, as investors priced in the potentialfor a deep and extended recession. Subsequently, our active approach to asset allocation has beenrewarding in 2009 and into 2010. It was our belief that the recovery in risk appetites across assets wouldnot be as unified as the decline, and that diversification would return.

The global economy began to “bottom-out” in the spring and, during the second half of the year, clearevidence of recovery emerged, resulting in a global equity market rally. As economic data improved, andthe likelihood of a 1930’s-style depression subsided, we became more positive on the outlook for equities.Increasing the Fund’s equity weighting and making tactical allocations to specific areas, such asemerging markets, has assisted performance.

Policy stimulus has been a key driver of returns The most important driver of the improved macroeconomic environment has been the exceptional degreeof global policy stimulus. This stimulus took a number of forms: increases in budget deficits, support forvulnerable financial institutions, low interest rates, and aggressive central bank purchases of governmentand corporate bonds. Corporate bonds were a significant contributor to the Fund’s performance, followedby continued strong returns from our allocation to convertible bonds, and our exposures to commoditiesand the emerging markets.

Elsewhere, within our diversifying strategies, holdings in the Brevan Howard Macro Hedge Fund and theDexion Absolute Fund have both assisted performance. In addition, after identifying a severe dislocation inthe valuating of dividend futures, we implemented a position in the DJ Euro Stoxx Dividend Future, whichalso proved a key contributor.

The UK equities portfolio is structured to benefit from ongoing global economic recoveryThe Fund’s UK equities portfolio was transitioned, through the start of the reporting period, away from itsearlier defensive bias, towards a more pro-cyclical stance that would benefit from a recovering globaleconomy. We added to the financials sector, particularly to banks and asset managers. We felt banks


Balanced Managed Portfolio Statementat 31 January 2010

UNITED KINGDOM – 46.94%; 2009 42.28%

Aerospace & Defence – 0.30%; 2009 1.08%330,309 BAE Systems 1,165,660 0.30

Banks – 4.51%; 2009 2.00%1,253,920 Barclays 3,392,481 0.88 1,319,411 HSBC (UK Registered) 8,936,371 2.32 7,258,865 Lloyds Banking Group 3,716,539 0.97

90,322 Standard Chartered 1,311,475 0.34

17,356,866 4.51

Consumer Goods – 0.00%; 2009 0.13%

Electricity – 0.00%; 2009 1.34%

Food Producers – 0.34%; 2009 0.00%67,800 Unilever 1,294,302 0.34

Food & Drug Retailers – 1.54%; 2009 1.09%754,479 Morrison (W) Supermarket 2,180,444 0.57 876,575 Tesco 3,730,264 0.97

5,910,708 1.54

Gas, Water & Multiutilities – 0.00%; 2009 1.26%

General Financial – 2.78%; 2009 2.73%648,602 3i 1,715,552 0.45 477,535 Ashmore 1,068,723 0.28

4,834 Deutsche Bank AG London Warrants 5/10/2011 5,211,439 1.35 1,395,445 IP Group 795,404 0.21

406,599 Man Group 962,826 0.25 1,274,279 moneysupermarket.com 930,224 0.24

10,684,168 2.78

Household Goods – 0.42%; 2009 0.28%4,196,227 Taylor Wimpey 1,619,744 0.42

Life Insurance – 0.00%; 2009 0.79%

Media – 0.69%; 2009 0.03%1,392,968 ITV 786,330 0.20

37,298 Phorm 139,868 0.04 301,026 WPP 1,750,466 0.45

2,676,664 0.69

Holding or Market % ofNominal Value Total

Value Investment £ Net Assets

Balanced Managed Performance Record

Net Asset Value

At Net Asset Net Asset31 January Units in Issue Value of Fund Value per Unit

£ p

2010 353,770,107 385,088,145 108.92009 327,894,783 280,048,603 85.412008 285,145,560 323,412,262 113.4

Income (Net Accumulations)

Accumulation UnitsCalendar Per UnitYear p

2010† 0.37212009 1.57102008 1.68652007 1.22612006 0.8922

Capital (Unit Prices)

Accumulation UnitsCalendar Highest LowestYear Offer Price Bid Price

p p

2010† 121.6 108.52009 118.4 76.492008 124.4 77.842007 124.0 106.92006 111.0 96.912005* 101.1 92.08

† To 31 March.

† To 31 January.* From 15 July

Total Expense RatioTotal Expense Ratio (TER) as at 31 January 2010: 1.5171% (31 January 2009: 1.5347%)

TER reflects the annual operating expenses of the Fund. It does not take into account the impact of any initial or exit charges or transaction-based expenditure i.e. dealing costs. TER is employed as thestandard method of disclosing the effect of charges by most European collective investment schemes.


Technology Hardware & Equipment – 0.35%; 2009 0.00%1,215,614 Spirent 1,340,822 0.35

Tobacco – 1.82%; 2009 2.64%174,662 British American Tobacco 3,616,377 0.94 167,331 Imperial Tobacco 3,381,760 0.88

6,998,137 1.82

Travel & Leisure – 1.57%; 2009 1.32%682,941 British Airways 1,408,224 0.37 739,599 Compass 3,166,963 0.82

1,227,810 Enterprise Inns 1,458,638 0.38

6,033,825 1.57

UK Sterling Denominated Fixed Rate Corporate Bonds – 8.06%; 2009 4.40%£310,000 Alliance & Leicester 6.25% Senior European Medium

Term Notes 27/9/2010 318,890 0.08 £250,000 AT&T 5.875% Senior Notes 28/4/2017 263,468 0.07 £400,000 BAA 5.85% Medium Term Notes 27/11/2015 415,002 0.11 £530,000 Bank Nederlandse Gemeenten 4.5% Medium Term

Notes 20/2/2018 538,498 0.14 £200,000 Barclays Bank 5.75% European Medium Term Notes

17/8/2021 204,797 0.05 £390,000 Barclays Bank 10% Subordinated Medium Term Notes

21/5/2021 502,651 0.13 £620,000 BP Capital Markets 5.75% Guaranteed Medium Term

Notes 26/2/2010 621,825 0.16 £150,000 British Telecommunication 6.625% European Medium

Term Notes 23/6/2017 158,884 0.04 £590,000 Deutsche Telekom International Finance 5.625% Medium

Term Notes 19/7/2013 628,152 0.16 £200,000 Dubai Holding Commercial Operations 6% Medium

Term Notes 1/2/2017 114,500 0.03 £270,000 EDF Energy Networks 5.125% European Medium

Term Notes 11/11/2016 276,097 0.07 £550,000 e.on 6% Guaranteed Medium Term Notes 30/10/2019 590,993 0.15 £500,000 Enel 6.25% Medium Term Notes 20/6/19 537,820 0.14 £300,000 Enterprise Inns 6.5% Bonds 6/12/2018 260,618 0.07 £600,000 European Investment Bank 4.875% Senior Medium

Term Notes 7/9/2016 640,348 0.17 £100,000 Finance for Danish Industry 6% Medium Term Notes 6/2/2012 98,421 0.03 £325,000 GE Capital UK Funding 4.75% Guaranteed European Medium

Term Notes 15/12/2010 333,195 0.09



Balanced Managed Portfolio Statement continued

Mining – 3.27%; 2009 1.91%90,300 Anglo American 2,096,766 0.54

225,952 BHP Billiton 4,216,264 1.09 74,900 Kazakhmys 913,031 0.24 77,232 Petropavlovsk 687,365 0.18

152,097 Rio Tinto 4,713,486 1.22

12,626,912 3.27

Mobile Telecommunications – 2.02%; 2009 3.04%300,804 Inmarsat 2,054,491 0.53

4,276,255 Vodafone 5,753,701 1.49

7,808,192 2.02

Non-life Insurance – 0.00%; 2009 0.14%

Oil Equipment, Services & Distributions – 0.63%; 2009 0.23%321,200 Amec 2,431,484 0.63

Oil & Gas Producers – 5.89%; 2009 6.25%381,038 BG 4,414,325 1.15

1,031,898 BP 6,055,177 1.57 558,325 Cairn Energy 1,814,556 0.47 354,578 Royal Dutch Shell 'B' Shares 5,932,090 1.54

93,379 SOCO 1,344,658 0.35 270,820 Tullow Oil 3,125,263 0.81

22,686,069 5.89

Pharmaceuticals & Biotechnology – 2.82%; 2009 3.58%178,453 AstraZeneca 5,193,875 1.35 465,940 GlaxoSmithKline 5,668,160 1.47

10,862,035 2.82

Real Estate – 0.60%; 2009 0.46%2,185,118 Dolphin Capital Investors 1,114,410 0.29

378,050 Segro 1,186,321 0.31

2,300,731 0.60

Software & Computer Services – 0.31%; 2009 0.00%386,500 Invensys 1,191,193 0.31

Support Services – 0.26%; 2009 0.00%112,590 Aggreko 1,017,814 0.26






£1,590,000 Treasury 4.5% Gilt 2019 1,660,238 0.43 £2,970,000 Treasury 4.75% Stock 2015 3,225,643 0.84

£210,000 Treasury 4.75% Stock 2020 222,742 0.06 £375,000 Treasury 5% Gilt 2018 408,666 0.11

£1,180,000 Treasury 5% Stock 2012 1,264,341 0.33 £283,000 Treasury 5% Stock March 2025 302,350 0.08

£1,900,000 Treasury 5% Stock September 2025 2,081,402 0.54 £1,050,000 Treasury 5.25% Stock 2012 1,133,974 0.29 £1,150,000 Treasury 8% Stock 2015 1,447,246 0.38 £1,827,000 Treasury 8% Stock 2021 2,478,280 0.64

£909,000 Treasury 8.75% Stock 2017 1,219,946 0.32

26,434,383 6.86

UK Sterling Denominated Variable Rate Corporate Bonds – 1.90%; 2009 3.49%£365,000 AXA 6.772% Perpetual Subordinated Floating Rate

European Medium Notes 319,028 0.08 £730,000 BUPA Finance 6.125% Perpetual Floating Rate Notes 593,649 0.15 £350,000 Generali Finance 6.214% Perpetual Floating Rate Notes 312,743 0.08 £325,000 HBOS 6.305% Subordinated Floating Rate Medium

Term Notes 18/10/2017 299,731 0.08 £300,000 HSBC 6.375% Subordinated Floating Rate Medium Term

Notes 18/10/2022 311,048 0.08 £130,000 Imperial Tobacco 9% Variable Guaranteed Medium Term

Notes 17/2/2022 165,032 0.04 £330,000 ING 6.875% Subordinated Floating Rate Medium Term

Notes 29/5/2023 340,563 0.09 £300,000 Intesa Sanpaolo 5.5% Subordinated Floating Rate European

Medium Term Notes 19/12/2016 307,228 0.08 £485,000 Land Securities 4.625% Floating Rate Notes 3/2/2013 493,615 0.13 £760,000 Legal & General 5.875% Floating Rate Perpetual Notes 602,394 0.16 £305,000 Lloyds TSB 6.9625% Subordinated Floating Rate Medium

Term Notes 29/5/2020 308,101 0.08 £490,000 Pearl Group Holdings 6.5864% Perpetual Floating Rate Notes 237,650 0.06 £440,000 Permanent Master Floating Rate Notes 15/7/2042 440,000 0.11

£50,000 Santander Finance Preferred 11.3% Subordinated Guaranteed Perpetual Floating Rate Notes 56,292 0.01

£450,000 Societe Generale 5.75% Perpetual European Medium Term Notes 425,265 0.11

£570,000 Standard Chartered 8.103% Perpetual Step-up Subordinated Bonds 597,280 0.16

£290,000 Suncorp Insurance 6.25% Floating Rate Medium Term Notes 13/6/2027 259,066 0.07




£382,000 Irish Nationwide 3.625% European Medium Term Notes 8/9/2010 385,337 0.10

£200,000 Lehman Brothers 6% Senior Medium Term Notes 25/1/2013 31,500 0.01 £450,000 Lewis (John) 6.375% Bonds 30/1/2012 478,980 0.12 £504,000 Lloyds TSB 7.5% Senior European Medium Term Notes

15/4/2024 577,943 0.15 £47,000 Marks & Spencer 5.875% Senior Medium Term Notes

29/5/2012 49,654 0.01 £300,000 Morgan Stanley 5.375% Bonds 14/11/2013 313,161 0.08 £465,000 National Grid Gas 6% European Medium Term Notes 7/6/2017 499,774 0.13 £300,000 Next 5.875% Bonds 12/10/2016 313,964 0.08 £240,000 Old Mutual 7.125% European Medium Term Notes

19/10/2016 250,236 0.06 £185,000 Roche 5.5% Guaranteed European Medium Term Notes

4/3/2015 198,034 0.05 £370,000 Royal Bank of Scotland 6.375% European Medium Term

Note 29/4/2014 393,225 0.10 £300,000 RWE Finance 5.5% Guaranteed Medium Term Note 6/7/2022 302,628 0.08 £520,000 Scotland Gas Networks 4.75% European Medium Term

Notes 21/2/2017 518,303 0.13 £3,238 Societe Generale Acceptance 0% European Medium Term

Notes 26/2/2012 3,251,276 0.84 £1,262 Societe Generale Acceptance 0% European Medium Term

Notes 26/5/2015 13,528,640 3.51 £1,750 Societe Generale 0% Index Symphony European Medium

Term Notes 12/9/2011 1,918,700 0.50 £220,000 Silverstone 5.063% European Medium Term Notes 21/1/2055 223,048 0.06 £100,000 Telecom Italia 5.625% Notes 29/12/2015 103,869 0.03 £250,000 Tesco 5% Medium Term Notes 20/2/2014 262,575 0.07 £380,000 Tesco 5% Medium Term Notes 24/3/2023 363,850 0.09 £275,000 Vodafone 8.125% Medium Term Notes 26/11/2018 333,489 0.09 £310,000 Wales & West Utilities 5.125% European Medium Term

Notes 2/12/2016 308,798 0.08

31,111,143 8.06

UK Sterling Denominated Fixed Rate Government Bonds – 6.86%; 2009 4.09%£2,840,000 Treasury 2.25% Gilt 2014 2,797,897 0.73

£835,000 Treasury 2.75% Gilt 2005 825,878 0.21 £720,000 Treasury 3.25% Gilt 2011 745,830 0.19

£3,186,000 Treasury 3.75% Gilt 2019 3,121,006 0.81 £2,215,000 Treasury 4% Gilt 2022 2,171,974 0.56 £1,241,000 Treasury 4.5% Gilt 2013 1,326,970 0.34




KRW7,332,374,000 Open forward currency contract Korean won v Japanese yen 149,132 0.04KRW3,706,102,000 Open forward currency contract Korean won v Japanese yen (63,075) (0.02)KRW7,160,073,000 Open forward currency contract Korean won v Japanese yen 31,369 0.01

MXN42,097,398 Open forward currency contract Mexican peso v Canadian dollar 30,571 0.01

NOK32,500,000 Open forward currency contract Norwegian kroner v Euro 123,778 0.03SEK88,739,624 Open forward currency contract Swedish kronor v

Czech koruna 3,304 – £4,675,456 Open forward currency contract UK sterling v Euro 233,655 0.06

£126,264 Open forward currency contract UK sterling v Euro (397) – £195,761 Open forward currency contract UK sterling v Euro 2,299 – £845,000 Open forward currency contract UK sterling v Euro 24,706 0.01

£2,300,000 Open forward currency contract UK sterling v Japanese yen (1,552) – £102,856 Open forward currency contract UK sterling v US dollar (3,257) –

$6,150,000 Open forward currency contract US dollar v Euro 125,939 0.03$2,949,000 Open forward currency contract US dollar v Euro 28,324 0.01$6,282,000 Open forward currency contract US dollar v Euro 45,129 0.01

$22,157,002 Open forward currency contract US dollar v UK sterling 530,432 0.14

1,165,794 0.31

Futures – 0.52%; 2009 (0.21)%350 DJ Stoxx 600 Health Care March 2010 Futures 200,525 0.05675 FTSE 100 March 2010 Futures (456,840) (0.12)679 FTSE Dividend December 2011 Futures 151,553 0.04679 FTSE Dividend December 2012 Futures 180,750 0.05

1,222 FTSE Dividend December 2013 Futures 363,045 0.0922 Heng Seng February 2010 Futures (26,074) (0.01)

263 Nasdaq 100 E-Mini March 2010 Futures (236,350) (0.06)100 Nikkei 225 (SGX) March 2010 Futures 26,125 0.01

85,700 OTC DB Agricultural Index (154,564) (0.04)151 Russell 2000 Mini March 2010 Futures (47,780) (0.01)

45 S&P E-Mini March 2010 Futures (53,697) (0.01)97 S&P/TSX 60 IX March 2010 Futures (268,818) (0.07)

483 SX5E Dividend December 2012 Futures 2,207,382 0.57120 SX5E Dividend December 2013 Futures 118,567 0.03

2,003,824 0.52

Options – (0.06)%; 2009 0.11%113 Call Option 12/2/2010 Nikkei 11000 3,314 –

(185) Put Option 19/2/2010 FTSE 100 5200 (221,075) (0.06)(366) Put Option 19/3/2010 FTSE 100 4900 (289,140) (0.08)183 Put Option 19/3/2010 FTSE 100 5200 331,230 0.09




£550,000 Svenska Handelsbanken 5.5% Subordinated Perpetual Floating Rate European Medium Term Notes 532,139 0.14

£270,000 UniCredito 6.375% Subordinated Floating Rate European Medium Term Notes 16/10/2018 280,430 0.07

£450,000 Westpac Bank 5.875% Floating Rate Notes 29/4/2018 472,108 0.12

7,353,362 1.90

EUROPE – 1.09%; 2009 1.78%

Euro Denominated Fixed Rate Government Bonds – 0.83%; 2009 1.78%€1,145,000 Germany (Federal Republic of) 6.25% Bonds 4/1/2024 1,275,297 0.33 €2,291,000 Greece (Republic of) 6.1% Bonds 20/8/2015 1,932,689 0.50

3,207,986 0.83

Euro Denominated Fixed Rate Corporate Bonds – 0.06%; 2009 0.00%€225,000 GlaxoSmithKline 5.625% Senior Guaranteed European

Medium Term Notes 13/12/2017 220,415 0.06

Euro Denominated Variable Rate Corporate Bonds – 0.20%; 2009 0.00%€358,000 Intesa Capital Trust 6.988% Perpetual Floating Rate Note 305,684 0.08 €950,000 Royal Bank of Scotland 7.0916% Perpetual Floating

Rate Note 448,589 0.12

754,273 0.20

NORTH AMERICA – 0.04%; 2009 0.00%

United States – 0.04%; 2009 0.00%

US Dollar Denominated Fixed Rate Corporate Bonds – 0.02%; 2009 0.00%$100,000 HBOS 6.75% Subordinated Medium Term Note 21/5/2018 61,011 0.02

US Dollar Denominated Variable Rate Corporate Bonds – 0.02%; 2009 0.00%$120,000 BNP Paribas Floating Rate Note 1/11/2015 73,559 0.02

DERIVATIVES – 0.77%; 2009 (0.23)%

Forward currency contracts – 0.31%; 2009 (0.13)%AUD3,505,000 Open forward currency contract Australian dollar v US dollar (44,490) (0.01)AUD3,505,000 Open forward currency contract Australian dollar v US dollar (44,490) (0.01)AUD1,688,000 Open forward currency contract Australian dollar v US dollar (7,731) – CAD3,896,479 Open forward currency contract Canadian dollar v US dollar (11,022) –

€2,070,000 Open forward currency contract Euro v UK sterling (75,950) (0.02)€600,000 Open forward currency contract Euro v UK sterling 519 –

€2,098,066 Open forward currency contract Euro v US dollar (20,473) (0.01)JPY 301,401,975 Open forward currency contract Japanese yen v Korean won 109,074 0.03





6,854,000 Put Option 2/4/2010 OTC AUD/USD 114,086 0.03(288) Put Option 17/4/2010 S&P 500 1075 (817,773) (0.21)144 Put Option 17/4/2010 S&P 500 1125 654,219 0.17

(225,139) (0.06)

INVESTMENT FUNDS – 43.91%; 2009 48.02%

Alternative – 2.15%; 2009 5.84%347,000 BH Macro 6,169,660 1.60

1,479,026 Dexion Absolute 2,123,881 0.55

8,293,541 2.15

Asia – 5.29%; 2009 4.65%665,136 BGF – Asia Pacific Fund 9,597,922 2.50

95,000 Morgan Stanley China A Share Fund 1,561,595 0.41859,359 BGF – Japan Value Fund 4,614,759 1.20220,078 BGF – Japan Small and Midcap Opportunities Fund 4,551,213 1.18

20,325,489 5.29

Bond – 0.00%; 2009 9.40%1 Morgan Stanley Global Convertible Bond Fund 36 –

Commodities – 0.95%; 2009 0.47%450,000 ETFS Agriculture DJ-USBCI 1,727,799 0.45

20,826 ETFS Physical Platinum 1,927,159 0.50

3,654,958 0.95

Emerging Markets – 1.34%; 2009 0.00%27,628 BGF – Emerging Markets Fund 2,056,628 0.53

137,210 iShares MSCI Emerging Markets Fund 3,114,667 0.81

5,171,295 1.34

Europe – 5.07%; 2009 9.40%1,889,315 BlackRock Continental Europe Fund 19,535,525 5.07

Latin America – 1.29%; 2009 0.00%101,802 BGF – Latin America Fund 4,952,667 1.29

Money Market – 9.70%; 2009 0.03%37,368,566 Institutional Cash Series 37,368,566 9.70



United Kingdom – 13.03%; 2009 12.05%5,293,389 BlackRock UK Absolute Alpha Fund 6,463,228 1.68

17,081 BlackRock UK Equity Recovery Fund 2,295,837 0.601,436,608 BlackRock UK Smaller Companies Fund 4,248,052 1.101,481,836 BlackRock UK Special Situations Fund 27,473,252 7.141,854,212 iShares FTSE 100 Fund 9,614,089 2.51

50,094,458 13.03

United States – 5.09%; 2009 6.18%2,198,304 BGF – US Flexible Equity Fund 19,608,871 5.09

Portfolio of investments 357,171,343 92.75Net other assets 27,916,802 7.25

Total net assets 385,088,145 100.00

All investments are ordinary shares unless otherwise stated.

Note: comparative figures show percentages for each category of holding at 31 January 2009.


31.1.2010 31.1.2009Notes £ £ £ £


during the year 2 76,672,806 (90,896,044) Revenue 3 9,491,650 10,178,276 Expenses 4 (5,008,475) (5,245,718) Finance costs: Interest 6 (31,606) (1,626)

Net revenue before taxation 4,451,569 4,930,932 Taxation 5 (87,235) (63,259)




31.1.2010 31.1.2009£ £ £ £

Opening net assets attributableto unitholders 280,048,603 323,412,262

Amounts receivable oncreation of units 36,150,382 61,911,302 Amounts payable on cancellation of units (12,201,563) (19,340,395)



Closing net assets attributableto unitholders £385,088,145 £280,048,603

Comparative figures have been restated for the presentation changes following adoption of the Statement of Recommended Practice (“theSORP”) for Authorised Funds issued by the Investment Management Association ("IMA") in November 2008 (see Accounting Policies).

Balanced Managed Statement of Change in Net AssetsAttributable to Unitholders for the year ended 31 January 2010

Balanced Managed Statement of Total Returnfor the year ended 31 January 2010

Balanced Managed Portfolio Turnover

for the year ended for the year ended31.1.2010 31.1.2009

Total purchases for the year £383,548,746 £187,082,700Total sales for the year £349,440,894 £162,890,659Portfolio Turnover Rate 203.57% 85.33%

The Portfolio Turnover Rate (PTR) gives an indication of how much the Fund's investments have changed during the relevant year.

The PTR is calculated by the Manager in accordance with the FSA requirements laid out in COLL 4 Annex 2 R


Balanced Managed Notes to Financial Statementsat 31 January 2010

1. Accounting PoliciesSee pages 4-5 of Aggregated Accounts.

2. Net Capital Gains/(Losses) on Investments During the Year31.1.2010 31.1.2009

£ £

The net capital gains/(losses) on investments comprise:Gains/(losses) on non-derivative securities 59,658,503 (75,378,408) Gains/(losses) on derivative contracts 13,788,101 (14,814,890) Gains/(losses) on forward currency contracts 3,805,995 (1,376,148) Other currency (losses)/gains (568,132) 676,461 Transaction costs (11,661) (3,059)

Net capital gains/(losses) on investments £76,672,806 £(90,896,044)

3. Revenue31.1.2010 31.1.2009

£ £

UK dividends 4,313,898 4,206,398 Overseas dividends 1,279,026 307,528 Underwriting commission 7,522 –Interest from UK fixed interest securities 2,046,022 2,443,808 Interest from money market deposits 10,736 76,451 Interest from overseas fixed interest securities 433,700 231,266 Interest from UK bank deposits 44,425 820,267 Manager's service charge rebate 1,356,321 2,092,558

Total revenue £9,491,650 £10,178,276

4. Expenses31.1.2010 31.1.2009

£ £

Payable to the Manager or associates of the Manager:– Manager's service charge 4,949,268 5,174,412 – Registrar's fees 40 36 – VAT refund on Registrar's fees (5) (7)

4,949,303 5,174,441


38,232 37,437

Balanced Managed Balance Sheetat 31 January 2010

31.1.2010 31.1.2009Notes £ £

Assets:Investment assets 360,015,891 259,459,618 – Debtors 7 4,166,675 5,797,319 – Cash and bank balances 8 29,781,559 18,844,548

Total other assets 33,948,234 24,641,867 Total assets 393,964,125 284,101,485

Liabilities: Investment liabilities (2,844,548) (2,226,031) – Creditors 9 (6,031,432) (1,826,851)


Net assets attributable to unitholders £385,088,145 £280,048,603



Balanced Managed Notes to Financial Statements continued

(c) Analysis of deferred tax charge for the year31.1.2010 31.1.2009

£ £

Opening deferred tax balance – –Deferred tax charge for the year [see note 5(a)] 398 –

Closing deferred tax balance £398 –

As at 31 January 2010, the Fund had no surplus management expenses, therefore, a deferred tax asset has not been recognised.

6. Finance CostsThe distributions take account of amounts received on the creation of units and amounts deducted oncancellation of units, and comprise:

31.1.2010 31.1.2009£ £

Interim 3,150,722 2,841,587 Final 1,316,240 2,171,181

4,466,962 5,012,768 Add: Amounts deducted on cancellation of units 45,202 106,807 Less: Amounts received on creation of units (147,830) (251,902)

Net distribution for the year 4,364,334 4,867,673 Finance costs: Interest 31,606 1,626

Total finance costs £4,395,940 £4,869,299

Details of the interim and final distributions per unit are set out in the table on page 39.

7. Debtors31.1.2010 31.1.2009

£ £

Sales awaiting settlement 442,357 3,629,328 Amounts receivable for creation of units 176,300 510,943 Currency sales awaiting settlement 1,957,868 –Income tax recoverable 10,627 11,541 Overseas tax recoverable 14,866 29,331 Manager’s service charge rebate 285,757 359,211 Accrued revenue 1,278,900 1,256,965

Total debtors £4,166,675 £5,797,319


£ £

Amount held at futures clearing houses and brokers 6,066,263 5,543,316 Cash and bank balances 23,715,296 13,301,232

Cash and bank balances £29,781,559 £18,844,548

Other expenses:– Safe custody fees 10,939 20,648 – Audit fee 8,550 8,930 – Risk monitoring fee 1,380 1,592 – Legal & professional fees 71 2,670

20,940 33,840

Total expenses £5,008,475 £5,245,718

5. Taxation(a) Analysis of tax charge in the year

31.1.2010 31.1.2009£ £

Corporation tax 76,758 –Income tax irrecoverable 17,727 57,547 Overseas tax – 5,712 Double taxation relief (7,648) –

Total current tax charge for the year [see Note 5(b)] £86,837 £63,259

Deferred tax charge for the year [see note 5(c)] 398 –

Total tax charge for the year £87,235 £63,259

(b) Factors affecting the current tax charge for the yearThe tax assessed for the period is lower than the standard rate of corporation tax in the UK for anauthorised unit trust. The differences are explained below:

31.1.2010 31.1.2009£ £


Corporation tax at 20% (2008: 20%) 890,314 986,186 Effects of:Movement in revenue accruals taxable on receipt 1,370 (1,692) Double Tax Relief (7,648) –Franked investment revenue at 20% (769,729) (779,318) Non Taxable overseas dividends (45,197) Overseas tax – 5,712 Utilisation of excess expenses – (205,176) Irrecoverable income tax 17,727 57,547

Total current tax charge for the year [see Note 5(a)] £86,837 £63,259




Risk Impact of risk

Market price risk The valuation of the Fund’s investments are calculated withreference to market prices quoted by financial agencies and brokers.Movements to those market prices may materially affect the value ofthe Fund's investments, which may move down as well as up.

To manage these risks the manager undertakes research tominimise the impact of such movements against the Fund’sinvestment objectives.

Liquidity risk The risk of low market liquidity, through reduced trading volumes,affecting the ability of the Fund to trade financial instruments atvalues previously indicated by financial brokers.

To manage these risks, the Investment Manager undertakes in-depth research of investment opportunities congruent with theFund’s investment objective.

The Fund invests primarily in a global portfolio of equities andfixed interest securities with the emphasis in the UK.

All stocks are valued daily. Stocks identified as being illiquid arereviewed for pricing accuracy as the need arises and on a formalmonthly basis by the BlackRock Pricing Committee.

Interest rate risk Revenue is generated by holding of bonds, which contractuallyoblige the borrower to repay the Fund interest under specific terms.

Changes to interest rate may affect the cash inflows and outflowscalculated with reference to financial assets and financial liabilitiesheld by the Fund.

The manager undertakes research to minimise the impact ofsuch movements against the Fund’s investment objective.

Credit risk The Fund holds bonds issued by companies and governments inorder to achieve its investment objective of maximising the overallreturn to the unitholders.

The borrower receives from the Fund a principal amount. The Fundwill then receive interest based on the coupon rate of the bond andrepayment of the initial principal amount on the bond’s maturity date.

Any impairment to the borrower’s ability to repay amounts duemay result in changes to the tradable value of the bond and theamount to be received upon maturity of the bond. The ability ofthe borrower to repay not only the principal value but also anyinterest due on the bond, referred to as the borrower’s creditrating, is monitored by the Manager.

The Manager may undertake its own research of the borrower’sfinancial position in order to assess the ability of the borrower torepay amounts due.

9. Creditors31.1.2010 31.1.2009

£ £

Purchases awaiting settlement 3,016,874 963,174 Amounts payable for cancellation of units 23,690 10,140 Currency purchases awaiting settlement 1,952,372 –Accrued Manager's service charge 1,000,312 829,352 Accrued Registrar's fee 4 6 Accrued Trustee's fee 7,647 2,937 Accrued Safe custody fees 10,362 9,253 Accrued Audit fee 8,740 8,930 Bank interest payable 1,278 –Deferred taxation 398 –Transaction costs 9,755 3,059

Total creditors £6,031,432 £1,826,851

10. Derivatives and Other Financial Instruments(a) The Fund's financial instruments, comprise securities and other investments, cash balances and

debtors and creditors that arise directly from its operations, for example, in respect of sales andpurchases awaiting settlement, amounts receivable for creations and payable for cancellation ofunits, and debtors for accrued revenue.

The Fund’s property is invested with the aim of achieving the investment objective of total returnby investing mainly in a global portfolio of equities and fixed interest securities with an emphasison in the UK.

The Manager shall take the risks it deems reasonable to meet the investment objective. Theserisks include the following:

Risk Impact of risk

Foreign currency risk The risk of changes to foreign currency rates materially affectingthe Sterling equivalent value of non-Sterling denominated assetsand liabilities accounted for by the Fund.

The Fund is accounted for in Sterling and holds financial assetsand financial liabilities denominated in Australian dollar,Canadian dollar, Czech koruna, Euro, Hong Kong dollar,Hungarian forint, Japanese yen, Mexican peso, New Zealanddollar, Norwegian kroner, Polish zloty, South African rand, SouthKorean won, Swedish krona and US dollar.

To manage these risks, the Fund may enter into forward currencytransactions during the period for the purposes of efficientportfolio management. The value of these transactions as at 31 January 2010, are shown on the Portfolio Statements frompage 17 to page 25.


The currency profile held at 31 January 2009 was:

Currency Currency Net Assets/(Liabilities)

Monetary Non- Totalexposures monetary

exposures31.1.2009 31.1.2009 31.1.2009

£ £ £

Euro 15,283 (10,710,880) (10,695,597) Japanese yen – (5,744,049) (5,744,049) South Korean won 85 – 85 UK sterling 18,829,179 283,379,735 302,208,914 US dollar 1 (5,720,751) (5,720,750)

Total £18,844,548 £261,204,055 £280,048,603

(c) Interest Rate Risk Profile of Financial Assets and LiabilitiesThe Interest Rate Risk Profile of Financial Assets and Liabilities at the balance sheet date was as follows :

Currency Floating Rate Fixed Rate Financial Assets TotalFinancial Financial not Carrying

Assets Assets Interest£ £ £ £

Australian dollar 111,854 – 4,936,302 5,048,156 Canadian dollar – – 3,896,479 3,896,479 Czech koruna 12 – – 12 Euro 1,095,694 3,428,401 8,661,813 13,185,908 Hungarian forint 26,953 – – 26,953 Japanese yen 5 – 2,104,758 2,104,763 Mexican peso – – 2,007,618 2,007,618 New Zealand dollar 307 – – 307 Norwegian kroner – – 3,436,672 3,436,672 Polish zloty 3,242 – – 3,242 South African rand 52 –South Korean won – – 9,771,292 9,771,292 Swedish krona 206,240 – 7,548,187 7,754,427 UK sterling 36,106,849 57,545,524 291,340,073 384,992,446 US dollar 411,543 61,011 29,309,679 29,782,233

Total £37,962,751 £61,034,936 £363,012,873 £462,010,560

Risk Impact of risk

Counterparty risk The risk of entering an arrangement with a counterparty, which isitself subject to financial risks which may affect its ability to tradeas a going concern.

The Manager maintains a list of approved counterparties. This list is regularly monitored and revised for changes based on thecounterparty’s credit-worthiness, market reputation and expectationsof future financial performance. Transactions will only be openedwith financial intermediaries on the approved counterparties list.

These risks are monitored by the manager in pursuance of the investment objective and policy asset out in the Manager’s Report. Adherence to investment guidelines and to investment andborrowing powers set out in the Trust Deed, the Prospectus and in the rules of the CollectiveInvestment Schemes Sourcebook mitigates the risk of excessive exposure to any particular type of security or issuer. Further information on the investment portfolio is set out in the InvestmentReport and Portfolio Statement.

(b) Currency ExposuresA proportion of the net assets of the Fund are denominated in currencies other than Sterling, withthe effect that the balance sheet and total return can be affected by currency movements.



exposures31.1.2010 31.1.2010 31.1.2010

£ £ £

Australian dollar 111,854 4,936,302 5,048,156 Canadian dollar – 1,650,614 1,650,614 Czech koruna 12 (7,544,883) (7,544,871) Euro 341,421 (7,416,537) (7,075,116) Hong Kong dollar – (26,074) (26,074) Hungarian forint 26,953 – 26,953 Japanese yen 5 (9,850,661) (9,850,656) Mexican peso – 2,007,618 2,007,618 New Zealand dollar 307 – 307 Norwegian kroner – 3,436,672 3,436,672 Polish zloty 3,242 – 3,242 South African rand 52 – 52 South Korean won – 7,805,047 7,805,047 Swedish krona 206,240 7,548,187 7,754,427 UK sterling 28,753,487 335,399,137 364,152,624 US dollar 337,984 17,361,166 17,699,150

Total £29,781,557 £355,306,588 £385,088,145



Currency Floating Rate Financial TotalFinancial Liabilities not

Liabilities Carrying Interest£ £ £

Euro – (15,803,585) (15,803,585) Japanese yen – (5,744,049) (5,744,049) UK sterling – (2,656,875) (2,656,875) US dollar – (5,959,911) (5,959,911)

Total £0 £(30,164,420) £(30,164,420)

Currency Fixed Rate Financial AssetsTotal Weighted Weighted

Market Average Average PeriodValue Interest Rate for which

£ Equivalent % Rate is Fixed

Euro 4,978,050 4.01 8.45 yearsUK sterling 23,382,307 4.79 5.72 yearsUK sterling perpetual 329,439 15.62 Undated

This table shows weighted average interest earned on the market value of bonds and will not reflect the yield on the Fund.

There are no material amounts of non-interest bearing financial assets, other than equities, which do not have maturity dates.

The floating rate financial assets and liabilities include: Sterling denominated bank balances which bear interest rates based on 0.125% under the sixmonth LIBOR and overdraft interest based on 3% over the base rate.

All overseas deposits and loans bear interest at rates determined by the relevant Authority.

(d) Fair Value of Financial Assets and Financial LiabilitiesThere is no material difference between the value of the financial assets and liabilities, as shownin the balance sheet, and their fair value.

11. Contingent LiabilitiesPlease see page 10.

12. Investment ManagementPlease see page 10.

13. Related Party TransactionsBlackRock Fund Managers Limited, as Manager and Registrar of the Fund, together with The RoyalBank of Scotland plc, as Trustee, are regarded as related parties to the Fund. BlackRock FundManagers Limited acts as either principal or agent for the Trustee in respect of all transactions ofunits of the Fund. The aggregate monies received through creation and paid through cancellation aredisclosed in the Statement of Change in Net Assets Attributable to Unitholders. Any amounts due toor from BlackRock Fund Managers Limited at the year end are disclosed in Notes 7 and 9.

Currency Floating Rate Financial TotalFinancial Liabilities not Liabilities Carrying Interest

£ £ £

Canadian dollar – (2,245,865) (2,245,865) Czech koruna – (7,544,883) (7,544,883) Euro – (20,261,024) (20,261,024) Hong Kong dollar (26,074) (26,074) Japanese yen – (11,955,419) (11,955,419) South Korean won – (1,966,245) (1,966,245) UK sterling – (20,839,822) (20,839,822) US dollar – (12,083,083) (12,083,083)

Total £0 £(76,922,415) £(76,922,415)




Euro 3,428,401 5.67 8.82 yearsUK sterling 57,545,526 3.81 6.15 yearsUS dollar 61,011 6.90 8.31 years


The Interest Rate Risk Profile of Financial Assets and Liabilities as at 31 January 2009 was as follows :



Euro 15,283 4,978,050 114,655 5,107,988 South Korean won 85 – – 85 UK sterling 28,633,270 23,711,747 252,520,772 304,865,789 US dollar 1 – 239,160 239,161

Total £28,648,639 £28,689,797 £252,874,587 £310,213,023


39

Balanced Managed Distribution Tablesfor the year ended 31 January 2010

Final Distribution in Pence per UnitGroup 1 – Units purchased prior to 1 August 2009Group 2 – Units purchased 1 August 2009 to 31 January 2010

Accumulation UnitsGroup 1 Group 2

Net revenue (dividend) 0.3721 0.1255Equalisation† – 0.2466Distribution payable 31.3.2010 0.3721 0.3721Distribution paid 31.3.2009 0.6622 0.6622

Interim Distribution in Pence per UnitGroup 1 – Units purchased prior to 1 February 2009Group 2 – Units purchased 1 February 2009 to 31 July 2009


Net revenue (dividend) 0.9088 0.4359Equalisation† – 0.4729Distribution paid 30.9.2009 0.9088 0.9088Distribution paid 30.9.2008 0.9623 0.9623

† Equalisation applies only to units purchased during the distribution period (Group 2 units). It is the average amount of revenue includedin the purchase price of all Group 2 units and is refunded to holders of these units as a return of capital. Being capital, it is not liable toincome tax but must be deducted from the cost of units for capital gains tax purposes.



Management fees and registration fees paid to BlackRock Fund Managers Limited and fees paid tothe Trustee are shown in Note 4. The balances due at the year end in respect of these fees are shownin Note 9.

The Fund’s investments in other BlackRock related products were entered into in the normal courseof business and on normal commercial terms.

The aggregate value of these transactions and holdings held by the Fund at the year end are shownon the Portfolio Statement from page 17 to page 25.

Where the management fee of the underlying investments is higher than of the Fund the rate onwhich the rebate is calculated may be greater that charged by the funds. The aggregate value of rebates due at the year end is shown in Debtors on page 31.

At the balance sheet date Scottish Equitable (Managed Funds) Limited held 339,691,486 units (96%) of the total units in the Fund. As Equitable (Managed Funds) are material unitholders in the Fund,they are regarded as a related party in accordance with FRS8 ‘Related Party Disclosures’.

No other transactions were entered into with associates of the Manager during the year.


31.1.2010 31.1.2010 31.1.2009 31.1.2009£ £ £ £

Purchases in year before transaction costs 383,216,042 186,852,143

Commissions and other costs (including stamp duty) 332,704 230,557

Total purchase costs 332,704 230,557

Gross purchases total £383,548,746 £187,082,700


Gross sales before transaction costs 349,547,308 162,958,535 Commissions and other costs (106,414) (67,876) Total sale costs (106,414) (67,876)

Total sales net of transaction costs £349,440,894 £162,890,659

15. Non Adjusting Post Balance Sheet Event Since the last business day of the accounting period, the Fund's quoted bid price has risen onAccumulation Units from 108.7p to 117.4p as at 15 March 2010, a rise of 8.00%.


Accumulation The final accumulation payable on 31 March 2010 is 0.4874p net per accumulation unit.


31.12.2008 31.12.2007 31.12.2006 31.12.2005 31.12.2004to 31.12.2009 to 31.12.2008 to 31.12.2007 to 31.12.2006 to 31.12.2005*

Continental European +20.1% -25.0% +15.0% +19.1% –

Performance Table


to 31.1.2010 to 31.1.2010


The Benchmark returned:Total Return (with net income reinvested)FTSE World Europe ex UK† +30.7% +31.1%


† Source: BlackRock/Factset. Net of withholding tax. Prior to 10 July 2009 the Collective Investment Funds were known as the QualifiedInvestor Schemes. All fund figures quoted are based on bid to bid, dealing prices (the price at which units are sold). Performance iscalculated net of fees.


BlackRock Continental European Equity Tracker FundBlackRock Continental European Equity Tracker Fund

Continental European Equity Tracker Investment Objective & Policy

The aim of the Fund is to seek to achieve capital growth for investors by tracking closely the performanceof the FTSE Continental Europe Index by investing in companies in the Index. Investment will be madedirectly into constituent companies and via other transferable securities giving exposure to suchcompanies. The Fund may also invest in permitted money market instruments, permitted deposits, andunits in collective investment schemes. Derivatives and forward transactions may be used for hedgingpurposes and meeting the investment objectives of the Fund. The scheme property of the Fund will in allcases be restricted to investment in property which is eligible as a permitted link in IPRU (INS), or suchother equivalent rules as may replace them from time to time.

The Fund is a sub-fund of BlackRock Collective Investment Funds , a UCITS scheme established underthe Financial Services Authority's Collective Investment Schemes Sourcebook "the Sourcebook". Prior to 10 July 2009 the Collective Investment Funds were known as the Qualified Investor Schemes (1). TheFund was authorised by the FSA on 21 June 2005 and subsequently launched on 15 July 2005. The Fundwas previously known as Merrill Lynch Continental European Equity Tracker Fund. It adopted its presentname with effect from 28 April 2008.


Continental European Equity Tracker Performance Record

Net Asset Value


£ p

2010 471,038,000 579,441,519 123.02009 330,184,528 311,853,632 94.452008 292,717,680 378,973,679 129.5



2010† 0.48742009 3.13282008 3.67592007 2.66662006 2.3036



p p

2010† 136.2 121.82009 136.4 78.802008 146.9 85.342007 145.8 124.82006 126.9 103.82005* 107.4 94.53

† To 31 March.

† To 31 January.* From 15 July.



Continental European Equity Tracker Investment Report

The Fund met its objective of tracking the benchmarkOver 12 months to 31 January 2010, the BlackRock Continental European Equity Tracker Fund met itsobjective of closely tracking the FTSE World Europe ex-UK index, returning 28.2%* versus the benchmarkreturn of 30.7%*.

Here, we focus on the second six months of the period, during which time the Fund returned 9.9%* andthe benchmark returned 11.0%*.


Investing in Continental European companies to match the FTSE World Europe ex-UK indexThe Fund seeks to achieve capital growth for investors by tracking closely the performance of the FTSEWorld Europe ex-UK index. Investment will be made directly into constituent companies and via othertransferable securities giving exposure to such companies.

Global equities rallied from lows struck in March 2009, recording strong gains over six and 12 monthsFollowing a difficult 2008, global equity markets continued to decline into the first quarter of 2009, amidfears that the global financial system was on the brink of collapse and that the world was entering anotherGreat Depression. Uncertainty surrounded the intentions of governments and global policymakers, butsuch concerns began to dissipate as investors witnessed huge global monetary and fiscal stimuli, whichreflated economic activity and forced share prices sharply higher from troughs reached in March. Despitenegative real economic growth across the entire developed world, coupled with noticeable earnings declines,“risk” assets managed to outperform “safe” assets in 2009 as a whole, as sidelined cash, which wasproducing near-zero returns, began to move back into the markets.

The pace of the rally slowed somewhat into the end of the year, and markets subsequently sold off inJanuary 2010, as risk aversion increased on two key developments, namely the tightening in monetaryconditions in China and, more importantly, further tensions in sovereign bond markets, particularlyGreece. However, the six months to the end of January saw strong equity gains overall, as measured bythe MSCI Global Equity index, and the period ended with a perception that the economic recovery is hereto stay, albeit with some lingering investor unease.

Strong performance for most of the period from Europe, a region in expansionary territory European equities rose in line with the broader global indices during the six-month period, in recordingdouble-digit gains. The healthcare, industrials, consumer staples and materials sectors led the markethigher at this time, while financials, telecoms and utilities were the relative laggards. January 2010 saw a disappointing start to the New Year in terms of performance, as European news flow was dominated byfears of the debt crisis and possible bailout of Greece.

Elsewhere, European economic data continued to consolidate. Business sentiment generally remains inan upward trend, with the German Ifo and European Commission surveys confirming this improvement.There were mixed signs coming from overall activity late in the period, with German industrial productionand retail sales data a little behind expectations. However, the region appears to be in expansionaryterritory overall.



10,364 Novozymes 664,653 0.11493 Rockwool 35,493 0.01

5,223 TrygVesta 199,696 0.0338,926 Vestas Wind System 1,296,475 0.22

4,536 William Demant 222,256 0.04

13,275,515 2.28

Finland – 2.37%; 2009 2.64%85,289 Fortum 1,361,990 0.2412,708 Kesko 256,839 0.0431,348 Kone 794,814 0.1427,183 Metso 573,912 0.1024,752 Neste Oil 254,637 0.04

693,626 Nokia 6,100,852 1.0521,800 Nokian Renkaat 331,675 0.0624,106 Outokumpu 274,965 0.0518,547 Rautaruukki 239,711 0.04

111,265 Sampo 1,690,908 0.297,440 Sanoma 103,451 0.02

117,357 Stora Enso Series 'R' Shares 454,525 0.0899,682 UPM-Kymenne 689,564 0.1218,919 Wartsila 560,587 0.10

13,688,430 2.37

France – 22.76%; 2009 23.45%43,116 Accor 1,368,821 0.24

5,680 ADP 278,420 0.0529,286 Air France 300,519 0.0547,923 Air Liquide 3,200,409 0.55

441,805 Alcatel 942,742 0.1652,062 Alstom 2,194,295 0.3812,257 Atos Origin 358,614 0.06

3,927 APRR 180,536 0.03422,966 AXA 5,503,309 0.95

7,023 Bic 312,695 0.053,777 bioMerieux 259,477 0.04

191,235 BNP Paribas 8,644,018 1.4948,993 Bouygues 1,520,128 0.26

9,493 Bureau Veritas 287,297 0.0527,509 Capgemini 769,899 0.13

132,138 Carrefour 4,050,620 0.708,435 Casino Guich-Perrachon 434,902 0.08



Continental European Equity Tracker Portfolio Statement at 31 January 2010

EQUITIES – 96.57%; 2009 98.61%

Austria – 0.76%; 2009 0.73%54,327 Erste Bank Der Oest Sparkassen 1,299,682 0.22

7,066 EVN 77,656 0.0179,894 Immoeast 243,248 0.04

8,613 Oest Elektrizitats Class 'A' Shares 225,476 0.0428,655 OMV 710,876 0.12

9,036 Raiffeisen International Bank 282,010 0.056,930 Strabag 118,481 0.02

65,932 Telekom Austria 570,761 0.107,567 Vienna Insurance 227,893 0.04

31,403 Voestalpine 694,061 0.12

4,450,144 0.76

Belgium – 2.06%; 2009 1.91%38,288 Anheuser Busch 166 –32,675 Belgacom 747,400 0.13

2,381 Colruyt 362,566 0.0619,197 Delhaize 942,324 0.16

102,925 Dexia 401,219 0.07450,649 Fortis Unit 997,968 0.17

15,482 GPE Bruxelles 888,887 0.15149,143 InBev 4,676,688 0.81

34,251 KBC Groep 936,752 0.162,930 Mobistar 115,284 0.026,185 Nationale Portefeuille 193,380 0.038,086 Solvay 502,898 0.09

26,225 UCB 733,963 0.1323,074 Umicore 447,830 0.08

11,947,325 2.06

Denmark – 2.28%; 2009 2.16%126 AP Moller-Maersk Class 'A' Shares 598,588 0.10315 AP Moller-Maersk Class 'B' Shares 1,558,487 0.27

22,709 Carlsberg Series 'B' Shares 1,068,783 0.186,084 Coloplast Series 'B' Shares 414,625 0.079,131 Danisco 400,385 0.07

133,871 Danske Bank 2,019,606 0.3510,200 FLSmidth 410,662 0.07

8,970 H Lundbeck 105,019 0.02100,537 Novo-Nordisk 4,280,787 0.74




Continental European Equity Tracker Portfolio Statement continued



47,673 Schneider Electric 3,098,114 0.5334,888 SCOR 506,441 0.09

131,263 Societe Generale 4,805,443 0.8322,517 Sodexho Alliance 774,428 0.13

130,232 STMicroelectronics 672,255 0.1270,056 Suez Environnement 996,286 0.1720,830 Technip 898,173 0.1630,810 Television Francaise 334,196 0.0615,050 Thales 428,648 0.07

444,836 Total 16,225,314 2.8016,834 Unibail 2,294,716 0.4010,260 Vallourec 1,112,015 0.1989,106 Veolia Environment 1,842,640 0.3291,154 Vinci 3,068,249 0.53

228,919 Vivendi Universal 3,743,005 0.654,820 Wendel Investissem 165,524 0.03

131,918,299 22.76

Germany – 15.82%; 2009 16.82%37,798 Adidas 1,209,825 0.2183,412 Allianz 5,817,170 1.00

1,192 AMB Generali 76,978 0.01172,420 BASF 6,150,646 1.06154,375 Bayer 6,610,333 1.14

17,314 Beiersdorf 633,027 0.1157,417 BMW 1,540,699 0.2716,271 Celesio 297,588 0.05

170,085 Commerzbank 831,504 0.14190,278 DaimlerChrysler 5,524,227 0.95115,302 Deutsche Bank 4,446,156 0.77

35,334 Deutsche Boerse 1,457,985 0.2544,852 Deutsche Lufthansa 450,913 0.08

172,115 Deutsche Post 1,884,106 0.33612,561 Deutsche Telekom 4,968,606 0.86

16,967 DT Postbank 323,784 0.06371,285 e.on 8,574,804 1.48

6,980 Fraport 222,202 0.046,175 Fresenius 236,453 0.04

41,472 Fresenius Medical Care 1,314,650 0.2315,334 Fresenius Non Voting Preference Shares 652,079 0.1135,127 GEA Group 450,038 0.08

5,124 Hamburger Hafen 118,761 0.02

13,836 Christian Dior 878,514 0.1592,476 CIE de St Gobain 2,794,695 0.4828,760 CIE Generale de Geophisique 448,046 0.08

1,601 Ciments Francais 98,642 0.028,460 CNP Assurances 469,653 0.08

163,110 Credit Agricole 1,617,871 0.2811,312 Dassault Systemes 408,727 0.0748,908 EDF 1,655,367 0.29

4,469 EDF Energies Nouvelles 139,941 0.0213,107 Eiffage 430,325 0.07

1,996 Eramet 379,774 0.0740,280 Essilor International 1,469,206 0.25

2,264 Euler Hermes 114,707 0.025,343 Eurazeo 243,317 0.04

62,409 Euro Aeronautic Defense Space 768,710 0.1315,339 Eutelsat Communications 310,812 0.05

360,679 France Telecom 5,199,709 0.90307,653 Gaz de France 7,317,383 1.26

3,573 Gecina 222,838 0.04118,535 Groupe Danone 4,257,739 0.73

15,272 Hermes 1,319,286 0.233,770 Icade 228,093 0.042,084 Iliad 145,104 0.037,315 Imerys 255,329 0.043,243 Ipsen 109,399 0.02

12,750 JC Decaux 205,707 0.0416,874 Klepierre 393,729 0.0755,910 L’Oreal 3,706,156 0.6440,779 Lafarge 1,906,215 0.3325,022 Lagardere 609,027 0.1118,394 Legrand 333,066 0.0668,426 LVMH 4,693,103 0.8120,737 Michelin 1,012,882 0.17

168,270 Natexis Banque Populaires 491,009 0.0825,768 Pages Jaunes 174,498 0.0349,999 Pernod Ricard 2,528,899 0.4433,519 Peugeot 687,185 0.1218,092 Pinault-Printemps-Redoute 1,386,188 0.2427,829 Publicis 718,506 0.1240,755 Renault 1,210,966 0.2139,804 Safran 489,069 0.08

183,216 Sanofi-Aventis 8,516,759 1.47







Hungary – 0.43%; 2009 0.27%2,460 Gedeon Richter 326,413 0.06

78,105 Magyar Telekom 176,976 0.0315,964 Mol Hungarian Oil 932,156 0.1654,462 OTP Bank 1,019,304 0.18

2,454,849 0.43

Ireland – 0.62%; 2009 0.69%140,630 Allied Irish Banks 156,318 0.03198,587 Bank of Ireland 226,478 0.04126,036 CRH 1,906,546 0.32112,126 Elan 526,776 0.09

22,244 Kerry 407,988 0.073,058 Kerry 'A' Shares 56,393 0.01

125,723 Ryanair 365,125 0.06

3,645,624 0.62

Italy – 7.71%; 2009 8.11%280,148 AEM 334,132 0.06287,847 Assicuraziona Generali 4,312,025 0.74

82,042 Atlantia Spa 1,290,212 0.2224,510 Autogrill 187,515 0.03

142,411 Banca Carige 230,135 0.04531,681 Banca MPS 541,435 0.09123,716 Banca Popolare 496,323 0.09

80,753 Banca Popolare Milano 330,619 0.068,499 Benetton 46,076 0.01

122,673 BPU Banca 1,060,892 0.1824,119 Bulgari 124,481 0.0213,065 Buzzi Unicem 122,394 0.0294,093 Edison 87,331 0.02

1,315,439 Enel 4,452,878 0.77511,775 ENI 7,515,592 1.30

15,453 Exor 160,180 0.037,109 Exor Priv 41,038 0.01

152,065 Fiat 1,204,939 0.2182,885 Finmeccanica 722,552 0.1215,910 Fondiaria-Sai 162,709 0.03

7,871 Fondiaria-Sai di Risparmio 54,415 0.011,643,347 Intesa Sanpaolo 3,959,228 0.68

14,024 Italcementi 109,421 0.0219,163 Italcementi di Risparmio 79,870 0.01



10,565 Hannover Rueckversicherung 305,078 0.0535,756 HeidelbergCement 1,353,198 0.2324,622 Henkel 672,868 0.1233,994 Henkel Non Voting Preference Shares 1,086,151 0.1910,023 Hochtief 467,830 0.08

209,411 Infineon Technologies 730,400 0.1336,506 K & S 1,292,126 0.2215,893 Lanxess 377,732 0.0724,105 Linde 1,660,179 0.2926,889 MAN 1,130,978 0.2012,325 Merck 688,173 0.1230,912 Metro 1,063,425 0.1836,461 Muenchener Rueckve 3,426,768 0.5916,694 Porsche Non Voting Preference Shares 593,996 0.10

1,137 Puma 217,863 0.046,553 Q-Cells 56,359 0.01

72,514 RWE 4,037,536 0.708,604 Salzgitter 478,991 0.08

172,006 SAP 4,947,494 0.85170,230 Siemens 9,603,816 1.66

14,550 Solarworld 154,669 0.038,910 Suedzucker 129,494 0.02

73,605 Thyssenkrupp 1,473,249 0.2547,728 Tui 277,380 0.05

4,977 Volkswagen 272,454 0.0520,069 Volkswagen Non Voting Preference Shares 1,015,940 0.18

2,992 Wacker Chemie 245,438 0.04

91,552,119 15.82

Greece – 0.91%; 2009 1.10%105,306 Alpha Bank 643,976 0.11

67,004 Bank of Piraeus 360,346 0.0630,821 Coca-Cola 443,795 0.0869,487 EFG Eurobank 376,713 0.0718,529 Hellenic Petroleum 143,526 0.02

113,551 Marfin Investment Group 198,962 0.03101,055 National Bank of Greece 1,403,383 0.24

47,143 OPAP 648,965 0.1172,430 OTE 625,128 0.1124,846 Public Power 292,027 0.05

9,795 Titan Cement 175,279 0.03

5,312,100 0.91





130,743 Reed Elsevier 990,056 0.1730,729 SBM Offshore 378,232 0.0770,349 TNT 1,269,254 0.22

290,314 Unilever 5,591,727 0.9754,775 Wolters Kluwers 718,629 0.12

31,892,622 5.52

Norway – 1.93%; 2009 1.57%39,392 Aker Kvaerner 333,694 0.06

232,493 DNB 1,665,439 0.29172,841 Norsk Hydro 795,952 0.14196,024 Orkla 1,111,526 0.19

63,456 Renewable Energy 233,092 0.0457,046 Seadrill 823,326 0.14

242,857 Statoil 3,445,929 0.5986,598 Storebrand ASA 382,196 0.07

157,883 Telenor 1,295,651 0.2241,673 Yara International 1,101,413 0.19

11,188,218 1.93

Poland – 0.82%; 2009 0.53%5,110 Bank Handlowy W Warszawie 82,650 0.01

20,665 Bank Pekao 759,654 0.134,699 Bank Zachodni 180,525 0.031,524 Bre Bank 84,953 0.01

59,085 Geting 116,611 0.0218,097 Globe Trade Centre 93,050 0.0229,815 KGHM Polska Miedz 622,443 0.1159,015 PKN Orlen 428,676 0.07

189,540 Pol Gorn Naft 155,424 0.03131,231 Polska Grupa Farmaceutyczna 663,456 0.11124,082 Powszechna Kasa 1,048,193 0.18133,329 TP 466,306 0.08

28,851 TVN 86,932 0.02

4,788,873 0.82

Portugal – 0.89%; 2009 0.93%73,419 Banco BPI 128,707 0.02

678,614 Banco Comercial Portugues 461,494 0.0857,776 Banco Espirito Santo 210,486 0.0486,264 Brisa Auto Estrada de Portugal 510,318 0.0930,620 Cimpor Cimentos 162,018 0.03



9,527 Lottomatica 118,587 0.0226,574 Luxottica 437,041 0.08

169,465 Mediaset 809,951 0.14153,875 Mediobanca 576,545 0.10

42,120 Mediolanum 148,334 0.03326,725 Parmalat 514,383 0.09581,657 Pirelli 213,420 0.04

63,193 Saipem 1,290,335 0.2273,661 Sara Raffinerie Sarde 129,866 0.02

307,607 Snam Rete Gas 907,199 0.162,514,488 Telecom Italia 2,366,500 0.411,155,656 Telecom Italia di Risparmio 845,553 0.15

90,399 Tenaris 1,265,594 0.22287,910 Terna 727,985 0.13

3,626,262 UniCredito Italiano 6,353,831 1.1098,228 Unione di Banche Italiane call warrant 30/06/2011 3,706 –

118,264 Unipol 90,377 0.02122,998 Unipol Priv 62,467 0.01

44,488,066 7.71

Luxembourg – 1.06%; 2009 0.93%10,133 Arcelormittel 246,107 0.04

201,633 Arcelormittel “Dutch Listing” 4,982,015 0.861,567 RTL 67,853 0.01

63,531 SES Global Fiduciary (Each Representing 1 'A' Share) 875,387 0.15

6,171,362 1.06

Netherlands – 5.52%; 2009 5.27%311,019 Aegon 1,183,267 0.20227,257 Ahold 1,793,652 0.31

44,165 Akzo Nobel 1,655,733 0.2982,295 ASML 1,638,976 0.2814,578 Corio 563,153 0.1014,631 Fugro 546,291 0.0946,711 Heineken 1,443,651 0.2523,387 Heineken Holdings 615,992 0.11

722,943 ING 4,301,851 0.74326,735 Koninklijke 3,396,729 0.59

34,605 Koninklijke DSM 1,015,022 0.18182,741 Philips Electronics 3,469,836 0.60

43,023 QIAGEN 587,958 0.1024,249 Randstad 732,613 0.13





Sweden – 5.33%; 2009 4.04%59,769 Alfa Laval 514,170 0.0968,483 Assa Abloy Series 'B' Shares 748,059 0.13

116,719 Atlas Copco Series 'A' Shares 1,002,106 0.1772,925 Atlas Copco Series 'B' Shares 556,677 0.1051,113 Boliden 433,840 0.0755,910 Electrolux Series 'B' Shares 836,950 0.14

566,983 Ericsson Series 'B' Shares 3,508,746 0.6156,003 Hennes & Mauritz Series 'B' Shares 2,082,763 0.3682,152 Hisqvarna Series 'B' Shares 352,663 0.0611,043 Holmen Series 'B' Shares 167,093 0.0348,574 Industrivarden Series 'A' Shares 358,199 0.0620,380 Industrivarden Series 'C' Shares 141,626 0.0284,376 Investor Series 'B' Shares 938,878 0.16

750,651 Nordea Bank 4,370,983 0.75228,626 Sandvik 1,578,091 0.27

74,717 Scania Series 'B' Shares 581,154 0.1065,084 Securitas Series 'B' Shares 397,790 0.07

396,907 Skandiaviska Enskilda Series 'A' Shares 1,494,999 0.2673,971 Skanska Series 'B' Shares 723,748 0.1280,166 SKF 'B' Shares 783,680 0.1444,999 SSAB Series 'A' Shares 462,466 0.0814,759 SSAB Series 'B' Shares 138,509 0.02

110,066 Svenska Cellulosa Series 'B' Shares 936,565 0.16115,311 Svenska Handelsbkn Series 'A' Shares 1,903,577 0.33132,119 Swedbank Series 'A' Shares 726,080 0.13

47,708 Swedish Match 630,626 0.1175,821 Tele2 Series 'B' Shares 675,463 0.12

409,913 Teliasonera 1,737,727 0.30126,387 Volvo Series 'A' Shares 669,868 0.12270,724 Volvo Series 'B' Shares 1,446,381 0.25

30,899,477 5.33

Switzerland – 15.68%; 2009 17.14%439,717 ABB (Registered) 5,060,742 0.87

17,250 Actelion 574,455 0.1026,446 Adecco (Registered) 898,705 0.16

9,557 Baloise (Registered) 500,455 0.092,148 BKW Energie 102,753 0.02

212,884 Credit Suisse 5,866,883 1.015,144 EFG 46,595 0.01



525,796 EDP Energias 1,308,960 0.2350,586 EDP Renovaveis 273,367 0.0547,769 Galp Energia 478,788 0.0848,711 Jeronimo Martins 293,445 0.05

171,900 Portugal Telecom 1,118,315 0.1948,174 PT Multimedia Servicos 170,908 0.03

5,116,806 0.89

Spain – 9.62%; 2009 10.32%67,186 Abertis Infraestructuras 854,941 0.15

4,569 Acciona 346,742 0.0648,535 Acerinox 575,297 0.1047,991 ACS Actividades 1,422,434 0.2545,624 Banco de Valencia 214,694 0.0416,872 Banco Espanol de Credito 122,934 0.02

193,917 Banco Popular Espanol 928,501 0.161,519,766 Banco Santander Central Hispano 13,571,576 2.34

230,618 BancSabadell 771,361 0.1368,059 Bankinter 382,018 0.07

689,691 BBVA 6,637,569 1.15107,361 Cintra Concesiones 704,316 0.12171,570 Corporacion Mapfre 425,632 0.07

4,961 Corporate Finance 156,036 0.03192,692 Criteria Ciaxacorp 548,232 0.09

34,191 Enagas 444,867 0.0814,661 Endesa 280,541 0.05

9,749 Fomento Construcciones 235,512 0.0446,457 Gamesa Corporacion Tecnologica 425,542 0.0787,952 Gas Natural 1,099,352 0.1915,786 Gestevision Telecinco 141,517 0.0240,721 Grifols 390,308 0.07

968,359 Iberdrola 5,185,973 0.89161,403 Iberdrola Renovables 449,411 0.08

47,568 Inditex 1,882,956 0.3231,351 Indra 427,087 0.0710,350 Red Electrica 325,623 0.06

230,283 Repsol 3,424,732 0.5923,389 Sacyr Vallehermoso 153,053 0.03

857,397 Telefonica 12,907,252 2.2324,557 Zardoya Otis 285,435 0.05

55,721,444 9.62



DERIVATIVES – (0.14)%; 2009 0.10%

Forward Currency Contracts – 0.00%; 2009 0.12%

Futures – (0.14)%; 2009 (0.02)%615 DJ Euro Stoxx 50 March 2010 (754,383) (0.13)124 OMX February 2010 (14,638) –

82 SIX Swiss Market March 2010 (31,879) (0.01)

(800,900) (0.14)


Total net assets £579,441,519 100.00

All investments are ordinary shares listed on a recognised stock exchange unless otherwise stated.






41,303 GAM 299,301 0.057,463 Geberit (Registered) 827,995 0.141,566 Givaudan 805,205 0.14

45,011 Holcim (Registered) 1,953,292 0.3439,500 Julius Baer (Registered) 824,096 0.1411,455 Kuehne & Nagel (Registered) 699,195 0.12

148 Lindt & Spruengli 201,440 0.0325 Lindt & Spruengli 388,299 0.07

8,817 Lonza (Registered) 394,888 0.07686,422 Nestle (Registered) 20,522,356 3.53

23,748 Nobel Biocare 440,627 0.08426,615 Novartis (Registered) 14,345,943 2.48

6,721 Pargesa 353,538 0.0699,603 Richemont (CIE) 2,134,645 0.37

132,560 Roche Genusscheine 14,000,772 2.423,463 Schindler 161,454 0.034,675 Schindler (Registered) 219,621 0.041,092 SGS (Registered) 885,056 0.159,498 Sonova Holdings 739,439 0.131,484 Straumann (Registered) 247,978 0.045,727 Swatch 945,966 0.15

17,782 Swatch (Registered) 562,695 0.106,540 Swiss Life (Registered) 523,092 0.09

65,552 Swiss Reinsurance (Registered) 1,804,999 0.313,964 Swisscom (Registered) 909,859 0.16

18,385 Syngenta (Registered) 2,982,352 0.518,736 Synthes 701,321 0.11

664,153 UBS 5,512,655 0.9526,701 Zurich Financial Services 3,596,281 0.61

91,034,948 15.68


31.1.2010 31.1.2009Notes £ £ £ £


during the year 2 101,722,594 (130,177,676) Revenue 3 14,982,209 16,145,577 Expenses 4 (1,028,956) (923,048) Finance costs: Interest 6 (33,115) (6,462)

Net revenue before taxation 13,920,138 15,216,067 Taxation 5 (2,533,019) (3,037,568)




31.1.2010 31.1.2009£ £ £ £


Amounts receivable oncreation of units 233,111,479 130,025,915


153,098,868 50,492,739 Stamp duty reserve tax (28) –Change in net assets attributable to



Comparative figures have been restated for the presentation changes following adoption of the Statement of Recommended Practice (“the SORP”) for Authorised Funds issued by the Investment Management Association (“IMA”) in November 2008 (see Accounting PoliciesNote 1(a)).

Continental European Equity Tracker Statement of Change inNet Assets Attributable to Unitholders for the year ended 31 January 2010

Continental European Equity Tracker Statement of Total Return for the year ended 31 January 2010

Continental European Equity Tracker Portfolio Turnover


Total purchases for the year £196,827,071 £126,998,146Total sales for the year £44,661,030 £63,535,072Portfolio Turnover Rate (16.30)% (5.53)%




Continental European Equity Tracker Notes to Financial Statementsat 31 January 2010



£ £

The net capital gains/(losses) on investments comprise:Gains/(losses) on non-derivative securities 99,913,286 (127,337,120) Gains/(losses) on derivative contracts 2,808,049 (3,666,074) Gains on forward currency contracts 126,456 200,489 Other currency (losses)/gains (1,047,020) 647,218 Transaction costs (78,177) (22,189)


3. Revenue31.1.2010 31.1.2009

£ £

Overseas Dividends 14,792,478 15,940,835 Stock dividends 156,720 –Interest from UK bank deposits 33,011 204,742

Total revenue £14,982,209 £16,145,577

4. Expenses31.1.2010 31.1.2009

£ £

Payable to the Manager or associates of the Manager:– Manager's service charge 899,158 760,067 – Registrar's fees 153 162 – VAT refunds on Registrar's fees (14) (17)

899,297 760,212


50,481 44,969

Other expenses:– Safe custody fees 68,653 105,609 – Audit fee 8,550 8,930 – Risk monitoring Fees 1,380 1,410 – Legal & professional fees 71 –– Notary fees 524 –– Sundry expenses – 1,918

79,178 117,867

Total expenses £1,028,956 £923,048

Continental European Equity Tracker Balance Sheetat 31 January 2010

31.1.2010 31.1.2009Notes £ £



Liabilities:Investment liabilities (800,900) (692,157) – Creditors 9 (985,056) (5,642,915)

Total other liabilities (985,056) (5,642,915) Total liabilities (1,785,956) (6,335,072)





31.1.2010 31.1.2009£ £

Interim 10,314,035 10,335,920 Final 2,295,698 2,228,970

12,609,733 12,564,890

Add: Amounts deducted on cancellation of units 395,855 755,890 Less: Amounts received on creation of units (1,775,189) (1,142,281)



Net revenue after taxation for the year 11,387,119 12,178,499 Less: non distributable stock dividends (156,720) –

Net distribution for the year £11,230,399 £12,178,499


7. Debtors31.1.2010 31.1.2009

£ £

Amounts receivable for creation of units 2,005,876 537,214 Currency sales awaiting settlement 346,966 –Overseas tax recoverable 1,617,404 1,253,585 Accrued revenue – 15,219

Total debtors £3,970,246 £1,806,018


£ £



Continental European Equity Tracker Notes to Financial Statementscontinued


31.1.2010 31.1.2009£ £

Corporation tax 2,095,355 3,004,449 Overseas tax 1,840,224 2,073,390 Double taxation relief (1,388,341) (2,078,437) Prior year adjustment in respect of corporation tax 4,140 (888)

Total current tax charge for the year [see Note 5(b)] £2,551,378 £2,998,514

Deferred tax (credit)/charge for the year [see note 5(c)] (18,359) 39,054

Total tax charge for the year £2,533,019 £3,037,568

(b) Factors affecting the current tax charge for the yearThe tax assessed for the year is lower than the standard rate of corporation tax in the UK for anauthorised unit trust. The differences are explained below:

31.1.2010 31.1.2009£ £


Corporation tax at 20% (2009: 20%) 2,784,028 3,043,214 Effects of:Movement in revenue accruals taxable on receipt 21,045 (39,959) Non taxable overseas dividends (680,669) – Non taxable stock dividends (31,344) – Overseas tax 1,842,519 2,074,584 Adjustment in respect of prior years corporation tax 4,140 (888) Double Tax Relief (1,388,341) (2,078,437)

Total current tax charge for the year [see Note 5(a)] £2,551,378 £2,998,514


£ £

Opening deferred tax balance 51,675 12,621 Deferred tax (credit)/charge for the year [see note 5(a)] (18,359) 39,054

Closing deferred tax balance £33,316 £51,675



Risk Impact of risk

Market price risk The valuation of the Fund’s investments are calculated withreference to market prices quoted by financial agencies andbrokers. Movements to those market prices may materially affectthe value of the Fund’s investments, which may move down aswell as up. The Manager undertakes research to minimise theimpact of such movements against the Fund’s investmentobjective.


To manage these risks, the Investment Manager undertakesresearch of investment opportunities to select opportunitiescongruent with the Fund’s investment objective.

The Fund invests primarily in companies incorporated or listed inContinental Europe (including Scandinavia) and the Republic ofIreland, which are normally considered to be areas operating with high levels of liquidity. From time to time, however, marketliquidity may be affected by economic events.

All stocks are valued daily. Stocks identified as illiquid arereviewed for pricing accuracy as the need arises and on a formal monthly basis by the BlackRock Pricing Committee.


The Manager maintains a list of approved counterparties. This list is regularly monitored and revised for changes based on the counter-party’s credit worthiness, market reputation andexpectations of future financial performance. Transactions willonly be opened with financial intermediaries on the approvedcounterparties list.

These risks are monitored by the Manager in pursuance of the investment objective and policy as set out in this Manager's Report. Adherence to investment guidelines and to investment andborrowing powers set out in the Trust Deed, the Prospectus and in the rules of the CollectiveInvestment Schemes Sourcebook mitigates the risk of excessive exposure to any particular type of security or issuer. Further information on the investment portfolio is set out in the InvestmentReport and Portfolio Statement.


9. Creditors31.1.2010 31.1.2009

£ £

Purchases awaiting settlement – 4,973,905 Amounts payable for cancellation of units – 34,647 Currency purchases awaiting settlement 346,960 –Accrued Manager's service charge 198,470 117,080 Accrued Registrar's fee 12 29 Accrued Trustee's fee 11,110 3,728 Accrued Safe custody fees 66,621 43,511 Accrued Audit fee 8,740 8,930 Corporation tax payable 250,176 387,221 Deferred taxation 33,316 51,675 Transaction costs 69,651 22,189

Total creditors £985,056 £5,642,915

10. Derivatives and Other Financial Instruments(a) The Fund’s financial instruments, comprise securities and other investments, cash balance and


The Fund’s property is invested with the aim of achieving the investment objective of capitalgrowth by tracking closely the performance of the FTSE World Europe ex-UK Index by investing in companies in the Index.


Risk Impact of risk


The Fund is accounted for in Sterling and holds financial assetsand financial liabilities denominated in Danish krone, Euro,Hungarian forint, Norwegian kroner, Polish zloty, Swedish krona,Swiss franc and US dollar.

To manage these risks, the Fund has entered into forwardcurrency transactions during the year. At 31 January 2010 no forward currency contracts have been entered into.


(c) Interest Rate Risk Profile of Financial Assets and LiabilitiesThe Interest Rate Risk Profile of Financial Assets and Liabilities at 31 January 2010 was as follows :



Danish krone 218,618 – 13,276,693 13,495,311 Euro 13,433,703 – 406,958,172 420,391,875 Hungarian forint 27,263 – 2,454,849 2,482,112 Norwegian kroner 172,787 – 11,188,219 11,361,006 Polish zloty 1 – 4,788,872 4,788,873 Swedish krona 1,032,600 – 30,899,477 31,932,077 Swiss franc 2,797,340 – 91,944,309 94,741,649 UK sterling 22,247 – 2,005,876 2,028,123 US dollar 6,449 – – 6,449

Total £17,711,008 £0 £563,516,467 £581,227,475


£ £ £

Euro – (754,383) (754,383) Swedish krona – (14,638) (14,638) Swiss franc – (31,879) (31,879) UK sterling – (985,056) (985,056)

Total £0 £(1,785,956) £(1,785,956)


(b) Currency ExposuresA proportion of the net assets of the Fund are denominated in currencies other than sterling, withthe effect that the balance sheet and total return can be affected by currency movements.

Currency Currency Net AssetsMonetary Non- Total

exposures monetaryexposures

31.1.2010 31.1.2010 31.1.2010£ £ £

Danish krone 218,618 13,276,693 13,495,311 Euro 13,433,703 406,203,789 419,637,492 Hungarian forint 27,263 2,454,849 2,482,112 Norwegian kroner 172,787 11,188,219 11,361,006 Polish zloty 1 4,788,872 4,788,873 Swedish krona 1,032,600 30,884,839 31,917,439 Swiss franc 2,797,340 91,912,430 94,709,770 UK sterling 22,247 1,020,820 1,043,067 US dollar 6,449 – 6,449

Total £17,711,008 £561,730,511 £579,441,519




exposures31.1.2009 31.1.2009 31.1.2009

£ £ £

Danish krone 28,025 6,727,462 6,755,487 Euro 4,449,097 226,126,450 230,575,547 Hungarian forint 3,214 823,571 826,785 Norwegian kroner 25,097 4,842,846 4,867,943 Polish zloty 824 1,686,420 1,687,244 Swedish krona 234,798 12,618,226 12,853,024 Swiss franc 469,850 54,073,709 54,543,559 UK sterling 2,644,455 (2,861,231) (216,776) US dollar 4 (39,185) (39,181)

Total £7,855,364 £303,998,268 £311,853,632


(e) Risk AnalysisNo further numerical analysis has been given as there were no derivatives of a material natureheld by the Fund during the year.



13. Related Party TransactionsBlackRock Fund Managers Limited, as Manager and Registrar of the Fund, together with The RoyalBank of Scotland plc, as Trustee, are regarded as related parties to the Fund. The Manager acts aseither principal or agent for the Trustee in respect of all transactions of units of the Fund. The aggregatemonies received through creation and paid through cancellation are disclosed in the Statement ofChange in Net Assets Attributable to Unitholders. Any amounts due to or from the Manager at theyear end are disclosed in Notes 7 and 9.

Management fees and registration fees paid to BlackRock Fund Managers Limited and fees paid to theTrustee are shown in Note 4. The balances due at the year end in respect of these fees are shown in Note 9.

At the balance sheet date Nutraco Nominees Limited held 405,323,668 units (86%) of the total units inthe Fund. As Nutraco Nominees Limited is a material unitholder in the Fund, it is regarded as arelated party in accordance with FRS8 ‘Related Party Disclosures’.



31.1.2010 31.1.2010 31.1.2009 31.1.2009£ £ £ £








15. Non Adjusting Post Balance Sheet Event Since the last business day of the accounting period, the Fund's quoted mid price has risen onAccumulation Units from 123.0p to 136.1p as at 15 March 2010, a rise of 10.65%.

The Interest Rate Risk Profile of Financial Assets and Liabilities as at 31 January 2009 was as follows:



Danish krone 28,025 – 6,781,299 6,809,324 Euro 4,449,097 – 242,335,726 246,784,823 Hungarian forint 3,214 – 844,393 847,607 Norwegian kroner 25,097 – 4,980,545 5,005,642 Polish zloty 824 – 1,687,417 1,688,241 Swedish krona 234,798 – 13,049,553 13,284,351 Swiss franc 469,850 – 58,138,031 58,607,881 UK sterling 2,644,455 – 16,526,123 19,170,578 US dollar 4 – – 4

Total £7,855,364 £0 £344,343,087 £352,198,451



Danish krone – (53,837) (53,837) Euro – (16,209,276) (16,209,276) Hungarian forint – (20,822) (20,822) Norwegian kroner – (137,699) (137,699) Polish zloty – (997) (997) Swedish krona – (431,327) (431,327) Swiss franc – (4,064,322) (4,064,322) UK sterling – (19,387,354) (19,387,354) US dollar – (39,185) (39,185)

Total £0 £(40,344,819) £(40,344,819)

There are no material amounts of non–interest bearing financial assets, other than equities, which do not have maturity dates.

The floating rate financial assets and liabilities includes: Sterling denominated bank balances which bear interest rates based on 0.125% under the sixmonth LIBOR and overdraft interest based on 3% over the base rate.





Continental European Equity Tracker Distribution Tables for the year ended 31 January 2010









Emerging Markets Equity Tracker Investment Objective & Policy

The aim of the Fund is to seek to achieve capital growth for investors by tracking closely the performanceof the FTSE All-World Emerging Index by investing in companies in the Index. Investment will be madedirectly into constituent companies and via other transferable securities giving exposure to suchcompanies. The Fund may also invest in permitted money market instruments, permitted deposits, and units in collective investment schemes. Derivatives and forward transactions may be used for thepurposes of efficient portfolio management.

The Fund is a sub-fund of BlackRock Collective Investment Funds, a UCITS scheme established underthe Financial Services Authority's Collective Investment Schemes Sourcebook "the Sourcebook". Prior to10 July 2009 the Collective Investment Funds were known as the Qualified Investor Schemes (1). The Fundwas authorised by the FSA on 27 October 2009 and it was launched on 20 November 2009.


Emerging Markets Equity Tracker Investment Report

Performance Table

Since Launch20.11.2009

The Fund returned:Total Return (with net income reinvested)Accumulation Units -4.6%

The Benchmark returned:Total Return (with net income reinvested)FTSE All World Emg Mkts (Net)† -0.6%


† Source: CAPS. Net of withholding tax. All fund figures quoted are based on bid to bid, dealing prices (the price at which units are sold).Performance is calculated net of fees.


AccumulationThe final accumulation payable on 31 March 2010 is 0.1473p net per accumulation unit.


The Fund met its objective of tracking the benchmarkThe BlackRock Emerging Market Equity Tracker Fund launched on 20 November 2009 and, in the period to 31 January 2010, returned -4.6%*. By comparison, the Fund’s FTSE All World Emerging indexbenchmark returned -0.6%*, with relative performance impacted by the costs associated with the Fund’s launch and the construction of the Fund’s investment portfolio.

It should be noted that relative performance was negatively impacted by the timing differential betweenthe Fund’s valuation point and that of the index.

Investing in Emerging Market companies to match the FTSE All World Emerging indexThe Fund seeks to achieve capital growth for investors by tracking closely the performance of the Fund’sFTSE All World Emerging index. Investment will be made directly into constituent companies and viaother transferable securities giving exposure to such companies. In the period since the Fund’s inception,relative performance has been impacted by the costs associated with the Fund’s launch and theconstruction of the Fund’s investment portfolio as well as restrictions on investment for the Fund. TheFund is gradually being positioned to a tracker fund. Currently, the Fund does not invest in all securities,or have exposure to all markets. The Fund looks to replicate the risks and return of the benchmarkthough it is not a pure index Fund.



Emerging Markets Equity Tracker Portfolio Statementat 31 January 2010

AFRICA – 9.76%

Egypt – 0.81%130,368 Al Ezz Steel 268,713 0.26

25,713 EFG Hermes 89,555 0.097,633 Orascom Cons 228,369 0.22

309,707 TMG Holdings 251,809 0.24

838,446 0.81

Morocco – 0.36%3,232 BMCE Bank 64,836 0.068,453 Douja Prom Addoha 73,642 0.078,865 Imm Hotel 235,796 0.23

374,274 0.36

South Africa – 8.59%29,454 ABSA 326,817 0.31

3,986 Anglo Platinum 238,037 0.2329,648 AngloGold Ashanti 683,566 0.6636,059 ArcelorMittal 314,358 0.3078,960 Aveng 228,584 0.2224,174 Bidvest 261,933 0.25

374,240 Firstrand 577,297 0.5512,946 Foschini 59,429 0.0668,421 Gold Fields 503,957 0.4846,511 Harmony Gold 275,832 0.26

4,448 Highveld 22,174 0.0248,656 Implats 787,182 0.7519,988 Lewis Group 84,134 0.0854,734 Mondi 200,554 0.19

135,243 MTN 1,224,336 1.1736,950 Sasol 874,079 0.8483,246 Shoprite 478,609 0.46

124,974 Standard Bank 1,123,723 1.0827,832 Tiger Brands 407,463 0.3986,572 Truworths 300,744 0.29

8,972,808 8.59

ASIA PACIFIC – 31.18%

Hong Kong – 18.31%200,000 Angang Steel 216,649 0.21

64,000 Anhui Conch Cement 220,635 0.21



Emerging Markets Equity Tracker Performance Record

Net Asset Value


£ p

2010 108,262,714 104,271,429 96.31



2010† 0.1473



p p

2010† 107.4 95.362009* 103.7 97.50

† To 31 March.

† To 31 January.* From 20 November

Total Expense Ratio*Total Expense Ratio (TER) as at 31 January 2010: 0.3203%

TER reflects the annual operating expenses of the Fund. It does not take into account the impact of anyinitial or exit charges or transaction-based expenditure i.e. dealing costs. TER is employed as thestandard method of disclosing the effect of charges by most European collective investment schemes.

* Annualised


Emerging Markets Equity Tracker Portfolio Statement continued

4,233,488 Bank of China 1,272,350 1.22690,000 Bank of Communications 436,375 0.42

7,000 BYD 32,007 0.03323,180 China Agri-Industries 277,365 0.27864,462 China CITIC 361,926 0.35499,801 China Coal 477,145 0.46556,606 China Communication Construction 322,940 0.31

4,501,000 China Construction Bank 2,159,334 2.07398,000 China COSCO 296,802 0.28174,000 China Everbright 256,999 0.25532,000 China Life Insurance 1,481,328 1.42420,000 China Longyuan Power 323,671 0.31316,703 China Merchants Bank 458,101 0.44199,100 China Minsheng 123,676 0.12390,500 China Mobile (Hong Kong) 2,314,300 2.23177,243 China National BUI 183,736 0.18432,000 China Overseas Land 479,765 0.46

44,000 China Pacific Insurance 102,008 0.10490,000 China Petroleum & Chemical 240,194 0.23608,000 China Railway 273,608 0.26388,000 China Railway Construction 304,935 0.29100,000 China Resources Land 113,146 0.11224,000 China Resources Power 270,367 0.26164,500 China Shenhua Energy 441,518 0.42936,000 China Shipping 221,136 0.21100,000 China Telecom 25,956 0.02582,000 China Unicom 410,633 0.39919,000 CNOOC 818,261 0.78214,000 Cosco Pacific 195,701 0.19702,000 Denway Motors 250,470 0.24194,000 Dongfeng Motor 158,703 0.15

1,010,000 Guangzhou Investments 152,586 0.15630,000 Huaneng Power 221,744 0.21

2,804,154 Industrial and Commercial Bank of China 1,282,185 1.23836,000 PetroChina 590,516 0.57137,500 Ping An Insurance 672,357 0.64533,000 Sino-Ocean Land 271,124 0.26

32,400 Sinopharm 76,287 0.0756,000 Yanzhou coal mining 69,302 0.07

460,000 Zinjin Mining 233,990 0.22

19,091,831 18.31



Indonesia – 2.18%223,016 Antam 31,259 0.03246,000 Astra 590,271 0.57646,500 Bumi Resources 105,719 0.10

1,562,500 Perusahaan Gas 391,083 0.38710,500 Rakyat Bank 358,037 0.34201,000 Semen Gresik 106,655 0.10602,500 Telekomunikasi 375,998 0.36281,500 United Tractors 314,710 0.30

2,273,732 2.18

Malaysia – 3.82%391,100 AmBank 347,753 0.33549,200 Axiata 328,567 0.32324,100 CIMB Bank 748,315 0.73572,300 Gamuda 288,988 0.28291,500 Genting Berhad 373,321 0.36567,513 IOI Group 531,609 0.51

86,200 Maybank 106,926 0.1082,900 Public Bank Berhad 180,184 0.17

358,447 Puncak Niaga 184,280 0.18314,359 Sime Darby 490,018 0.47264,400 Tenaga Nasional 386,021 0.37

3,965,982 3.82

Philippines – 0.39%12,830 Ayala 49,504 0.05

490,700 AyalaLand 69,148 0.0710,528 Jollibee 7,418 0.0125,490 Manila Electric 55,077 0.05

114,200 MetroBank 63,605 0.063,225 PLDT 115,346 0.11

10,560 SM Investments 43,934 0.04

404,032 0.39

Taiwan – 5.08%145,000 Asia Optical 188,932 0.18587,000 AU Optronics 410,519 0.39333,000 Cathay Financial 351,928 0.34217,000 Cheng Shin Rubber 260,280 0.25745,000 China Steel 471,535 0.45

25,000 Chunghwa Telecom 28,374 0.03





202,000 Faraday Technology 247,813 0.24389,000 Fubon Financial 284,206 0.27

56,000 High Tech Computer 344,597 0.33333,000 Hon Hai Precision 871,689 0.84328,000 Innolux Display 336,392 0.32423,000 Oriental Union Chemicals 200,798 0.19119,000 Taiwan Fertilizer 241,765 0.23784,000 Taiwan Semiconductor Manufacturing 940,366 0.90101,000 U-Ming Marine Transport 119,960 0.12

5,299,154 5.08

Thailand – 1.40%16,700 Banpu 165,770 0.16

1,336,200 Charoen Pok Foods 286,373 0.27100 PTT 417 –

206,900 PTT Aromatics 95,298 0.0948,000 PTT Chemical 76,252 0.07

181,800 PTT Exploration and Production 449,444 0.43101,900 Siam Commercial Bank 152,778 0.15

34,769 Siam Makro 56,541 0.05376,500 Thoresen Thai Agency 185,802 0.18

1,468,675 1.40

EUROPE – 4.19%

Czech Republic – 0.51% 10,551 CEZ 322,637 0.3114,147 Telefonica O2 209,074 0.20

531,711 0.51

Hungary – 0.76% 3,745 Mol Hungarian Oil 218,675 0.21

30,823 OTP Bank 576,879 0.55

795,554 0.76

Poland – 1.29% 11,704 Bank Pekao 430,244 0.41

5,964 KGHM Polska Miedz 124,509 0.1224,731 PKN Orlen 179,642 0.1711,788 Polska 59,596 0.0648,971 Powszechna Kasa 413,687 0.4039,403 TP 137,808 0.13

1,345,486 1.29



Turkey – 1.63% 15,044 Coca Cola Icecek 78,146 0.07

426,645 Dogan Holdings 194,811 0.19189,214 Erdemir 377,295 0.36189,890 GarantiBank 505,122 0.48158,708 Turkiye Is Bankasi 442,121 0.42

73,939 YapiKredi 112,125 0.11

1,709,620 1.63

LATIN AMERICA – 26.69%%

Brazil – 20.12% 24,432 AES Eletropaulo 292,496 0.2850,600 All America Latina 254,797 0.24

116,150 Banco Bradesco 1,213,519 1.1661,500 Banco do Brasil 576,300 0.55

111,100 Banco Itau 1,338,594 1.283,840 Banco Santander 28,838 0.03

14,300 Bevidas das Americas 824,991 0.79167,274 BM&FBOVESPA Exchange 710,107 0.68

16,465 Cemig Energy Preference 172,134 0.1732,052 Cesp Energy Preference 'B' Shares 251,076 0.2431,300 Cia Concessoes Rodoviarias 419,811 0.40

6,000 Cia Paranaense de Energia Preference 'B' Shares 77,113 0.0777,900 Cia Vale Rio Doce 1,270,580 1.22

129,600 Cia Vale Rio Doce Preference 'A' Shares 1,821,237 1.7624,549 Cosan SA Industria 174,373 0.1744,000 Cyrela Brazil 317,524 0.3094,450 Embraer Empresa Brasileira de Aeronautica 314,655 0.3041,400 Gerdau SA Siderurgia Preference 349,844 0.34

187,500 Itau SA Investimentos 702,179 0.6745,894 JBS 142,945 0.1434,018 Light 282,812 0.2751,400 Lojas Americanas Preference Shares 226,772 0.2235,865 Naspers 800,949 0.7742,400 Natura Cosmeticos 479,893 0.4613,157 Net servicos de communicacia 95,649 0.09

100,473 OGX Petroleo e Gas Participacoes 562,893 0.5421,300 Pao de Acucar Preference 'A' Shares 449,270 0.4341,769 Perdigao 628,896 0.60

239,300 Petrol Brasileiro Petrobas Sponsored Preference Shares 2,726,809 2.62125,500 Petrol Brasileiros 1,599,563 1.53

4,149 Redecard 36,458 0.03





42,100 Siderurgica Nacional 772,168 0.7416,625 TAM Preference 'A' Shares 191,104 0.1827,900 Tele Norte Leste Preference 'A' Shares 312,615 0.3034,700 Usiminas Siderúrgicas de Minas Gerais Preference

'A' Shares 573,955 0.55

20,992,919 20.12

Columbia – 0.88% 3,323 Almacenes Exito 19,338 0.02

20,660 Bancolumbia 141,420 0.14526,011 Ecopetrol 406,225 0.39

43,960 Suramericana 349,034 0.33

916,017 0.88

Mexico – 5.55% 64,000 Alfa Series 'A' Shares 259,635 0.25

1,384,400 America Movil 1,902,928 1.83751,800 Cemex (Representing 2 'A' and 1 'B' Shares) 442,209 0.42

30,300 Financiero Banorte 62,532 0.06203,800 Fomento Economico Mexicano 539,487 0.52

56,260 Grupo Aeroportuari Series 'B' Shares 111,263 0.119,200 Industrias penoles 107,056 0.10

24,400 Kimberly Clark Mexico 68,533 0.07428,100 Mexico Series 'B' Shares 545,619 0.52380,600 Telefonos de Mexico 193,666 0.19260,700 Televisa (Representing 25 'A', 22 'B',35 'D' and

35 'L' Shares) 641,461 0.62134,665 Telmex Internacional 74,806 0.07294,800 Wal-Mart de Mexico Series 'V' 819,509 0.79

5,768,704 5.55

Peru – 0.14% 4,582 Minas Buenaventura 92,350 0.09

60,200 Volcan 47,244 0.05

139,594 0.14

NORTH AMERICA – 20.30% 5,175 Credicorp 222,838 0.21

75,381 Dr Reddy's Laboratories ADS 1,115,379 1.0717,590 Electricid ADS 558,524 0.5439,124 Enersis ADR 560,589 0.54

184,808 Gazprom ADR 2,837,167 2.72



21,048 HDFC Bank ADS 1,552,592 1.4959,283 ICICI Bank ADR 1,304,122 1.2543,957 Infosys Technologies ADR 1,424,268 1.3732,726 LAN ADR 335,960 0.3252,695 Lukoil ADR 1,825,120 1.75

112,970 Norilsk Nickel ADR 1,094,873 1.0585,065 Reliance Industries GDR 2,415,413 2.3336,070 Rostelekom ADR 649,413 0.62

301,554 Satyam Computer Services ADR 914,598 0.8816,719 SQM ADR 378,953 0.36

110,654 Sterlite Industries ADS 1,101,430 1.06152,203 Surgutneftegaz ADR 805,468 0.77

85,149 Tata Communications ADR 711,523 0.68106,769 Tata Motors ADS 974,807 0.93

30,475 Turkcell ADS 345,944 0.332,556 Wipro Technologies ADR 31,408 0.03

21,160,389 20.30

INVESTMENT FUNDS – 0.98% 48,000 MSCI Emerging Markets Tracker ETF 1,026,720 0.98

DERIVATIVES – (0.17)%

Futures – (0.17)% 421 MSCI Taiwan Index February 2010 (178,409) (0.17)

Portfolio of investments 96,897,239 92.93 Net other assets 7,374,190 7.07

Total net assets £104,271,429 100.00


Note: fund launched on 20 November 2009 therefore no comparatives have been given.




for the period 20.11.2009 - 31.1.2010

Notes £ £

IncomeNet capital losses

during the period 2 (4,571,423) Revenue 3 220,499 Expenses 4 (61,245) Finance costs: Interest 6 (1,680)

Net revenue before taxation 157,574 Taxation 5 (10,400)

Net revenue after taxation for the period 147,174

Total return before distributions (4,424,249) Finance costs: Distributions 6 (150,247)

Change in net assets attributable tounitholders from investment activities £(4,574,496)

for the period 20.11.2009 - 31.1.2010

£ £

Opening net assets attributableto unitholders –

Amounts receivable oncreation of units 126,140,388

Amounts payable on cancellation of units (17,453,954)

108,686,434 Stamp duty reserve tax (9) Change in net assets attributable to

unitholders from investment activities (4,574,496) Retained distribution on accumulation units 159,500

Closing net assets attributableto unitholders £104,271,429

Emerging Markets Equity Tracker Statement of Change in Net Assets Attributable to Unitholders for the period ended 31 January 2010

Emerging Markets Equity Tracker Statement of Total Return for the period ended 31 January 2010

Emerging Markets Equity Tracker Portfolio Turnover

for the period 20.11.2009 - 31.1.2010

Total purchases for the period £123,994,976Total sales for the period £22,911,104Portfolio Turnover Rate 3.29%

The Portfolio Turnover Rate (PTR) gives an indication of how much the Fund's investments have changed during the relevant period.



Emerging Markets Equity Tracker Notes to Financial Statementsat 31 January 2010


2. Net Capital Losses on Investments During the Periodfor the period 20.11.2009 - 31.1.2010

£

The net capital losses on investments comprise:Losses on non-derivative securities (4,531,883) Losses on derivative contracts (22,655) Losses on forward currency contracts (49) Other currency losses (13,524) Transaction costs (3,312)

Net capital losses on investments £(4,571,423)

3. Revenuefor the period 20.11.2009 - 31.1.2010

£

Overseas dividends 216,616 Interest from UK bank deposits 3,883

Total revenue £220,499

4. Expensesfor the period 20.11.2009 - 31.1.2010

£

Payable to the Manager or associates of the Manager:– Manager's service charge 38,241 – Registrar's fees 2

38,243

Payable to the Trustee or associates of the Trustee:– Trustee's fees 2,220

2,220

Other expenses:– Safe custody fees 6,092 – FSA fee 30 – Audit fee 9,071 – ADR fee 866 – Notary fee 1,650 – Sundry expense 3,073

20,782

Total expenses £61,245

Emerging Markets Equity Tracker Balance Sheetat 31 January 2010

31.1.2010Notes £ £

Assets:Investment assets 97,075,648 – Debtors 7 10,335,545 – Cash and bank balances 8 11,376,357

Total other assets 21,711,902 Total assets 118,787,550

Liabilities:Investment liabilities (178,409) – Creditors 9 (14,337,110) – Bank overdraft (602)

Total other liabilities (14,337,712) Total liabilities (14,516,121)

Net assets attributable to unitholders £104,271,429



Emerging Markets Equity Tracker Notes to Financial Statementscontinued

5. Taxation(a) Analysis of tax charge in the period

for the period 20.11.2009 - 31.1.2010£

Overseas tax 10,400

Total current tax charge for the period [see Note 5(b)] £10,400

(b) Factors affecting the current tax charge for the periodThe tax assessed for the period is lower than the standard rate of corporation tax in the UK for anauthorised unit trust. The differences are explained below:

for the period 20.11.2009 - 31.1.2010£

Net revenue before taxation 157,574

Corporation tax at 20% 31,515 Effects of:Excess expenses for which no tax relief taken 3,961 Expenses not deductible for Tax purposes 615 Overseas tax 8,680 Non taxable overseas dividends (34,371)

Total current tax charge for the period [see Note 5(a)] £10,400

As at 31 January 2010 the Fund has surplus management expenses of £19,804. It is unlikely that the Fund will generate sufficienttaxable profits in the future to utilise these expenses and, therefore, a deferred tax asset of £3,961 has not been recognised.


for the period 20.11.2009 - 31.1.2010£

Final 159,500

159,500 Add: Amounts deducted on cancellation of units 16,751 Less: Amounts received on creation of units (26,004)

Net distribution for the period 150,247 Finance costs: Interest 1,680

Total finance costs 151,927

Net revenue after taxation for the period 147,174 Add: expenses reimbursed by capital 3,073

Net distribution for the period £150,247

Details of the final distribution per unit are set out in the table on page 92.

7. Debtors31.1.2010

£

Sales awaiting settlement 3,606,415 Amounts receivable for creation of units 2,510,880 Currency sales awaiting settlement 4,153,708 Accrued revenue 64,542

Total debtors £10,335,545

8. Cash and Bank Balances31.1.2010

£

Amount held at futures clearing houses and brokers 751,836 Cash and bank balances 10,624,521

Cash and bank balances £11,376,357



9. Creditors31.1.2010

£

Purchases awaiting settlement 10,122,421 Currency purchases awaiting settlement 4,156,193 Accrued Manager's service charge 38,241 Accrued Registrar's fee 2 Accrued Trustee's fee 1,745 Accrued Safe custody fees 6,092 Accrued Audit fee 9,071 Accrued FSA fee 30 Bank interest payable 3 Transaction costs 3,312

Total creditors £14,337,110



The Fund seeks to achieve capital growth for investors, by tracking closely the performance of the FTSE All World Emerging Index.


Risk Impact of risk


The Fund is accounted for in Sterling and holds financialinstruments issued by companies whose businesses areestablished in emerging economies, which are typically lessdeveloped countries and may exhibit higher levels of currencyvolatility and foreign exchange restrictions than more developedcountries.

To manage these risks, the Fund has entered into forwardcurrency transactions during the period for the purposes ofefficient portfolio management. At 31 January 2010, the Fund has no open foreign currency contracts.


Risk Impact of risk

Market price risk The valuation of the Fund’s investments are calculated withreference to market prices quoted by financial agencies andbrokers. Movements to those market prices may materially affectthe value of the Fund's investments, which may move down aswell as up.

To manage these risks, the Manager undertakes research tominimise the impact of such movements against the Fund’sinvestment objective.


The Fund invests primarily in companies established in emergingeconomies, the securities of which may experience lower tradingvolumes and greater price volatility than securities issued bycompanies established in developed economies.

To manage these risks, investments are made with the intentionof holding over long-term. The Investment Manager undertakesin-depth research of investment opportunities to selectopportunities congruent with the Fund’s investment objective.


The BlackRock Pricing Committee will also review any significantmarket events which affect the liquidity of assets.


The Manager maintains a list of approved counterparties. This list is regularly monitored and revised for changes based on the counterparty’s credit-worthiness, market reputation andexpectations of future financial performance. Transactions willonly be opened with financial intermediaries on the approvedcounterparties list.

These risks are monitored by the manager in pursuance of the investment objective and policy as set out in the Manager’s Report. Adherence to investment guidelines and to investment andborrowing powers set out in the Trust Deed, the Prospectus and in the Collective InvestmentScheme Sourcebook mitigates the risk of excessive exposure to any particular type of security or issuer. Further information on the investment portfolio is set out in the Investment Report and Portfolio Statement.




Currency Currency Net Assets/(Liabilities)Monetary Non- Total

exposures monetaryexposures

31.1.2010 31.1.2010 31.1.2010£ £ £

Brazilian real – 18,802,729 18,802,729 Chinese yuan – (637,697) (637,697) Columbian peso – 916,017 916,017 Czech koruna – 531,711 531,711 Egyptian pound – 838,445 838,445 Hong Kong dollar 4,846 19,807,745 19,812,591 Hungarian forint 17,945 777,618 795,563 Indonesian rupiah – 2,273,732 2,273,732 Israeli shekel 3 – 3 Moroccan dirham – 334,439 334,439 Mexican peso 106,663 5,662,151 5,768,814 Malaysian ringgitt (153) 3,970,566 3,970,413 Peruvian sol – 139,594 139,594 Phillipine peso – 404,032 404,032 Polish zloty 773 1,344,726 1,345,499 South African rand 2,545 9,771,602 9,774,147 Thai baht (378) 1,468,676 1,468,298 Turkish lira 51 1,709,609 1,709,660 Taiwan dollar 10,250,615 1,321,113 11,571,728 UK sterling 1,226,215 2,477,099 3,703,314 US dollar (233,370) 20,981,767 20,748,397

Total £11,375,755 £92,895,674 £104,271,429

(c) Interest Rate Risk Profile of Financial Assets and LiabilitiesThe Interest Rate Risk Profile of Financial Assets and Liabilities at 31 January 2010 was as follows:



Brazilian real – – 20,248,979 20,248,979 Chinese yuan – – 2,950 2,950 Columbian peso – – 916,017 916,017 Czech koruna – – 531,711 531,711 Egyptian pound – – 838,445 838,445 Hong Kong dollar 4,846 – 21,100,818 21,105,664 Hungarian forint 17,945 – 861,648 879,593 Indonesian rupiah – – 2,373,717 2,373,717 Israeli shekel 3 – – 3 Moroccan dirham – – 374,274 374,274 Mexican peso 106,663 – 5,937,372 6,044,035 Malaysian ringgitt – – 4,009,571 4,009,571 Peruvian sol – – 139,594 139,594 Phillipine peso – – 404,032 404,032 Polish zloty 773 – 1,399,938 1,400,711 South African rand 2,545 – 10,170,775 10,173,320 Thai baht – – 1,468,676 1,468,676 Turkish lira 51 – 2,320,808 2,320,859 Taiwan dollar 10,250,615 – 5,299,152 15,549,767 UK sterling 1,226,215 – 7,144,015 8,370,230 US dollar – – 21,868,702 21,868,702

Total £11,609,656 £0 £107,411,194 £119,020,850




£ £ £

Brazilian real – (1,446,250) (1,446,250) Chinese yuan – (640,647) (640,647) Hong Kong dollar – (1,293,073) (1,293,073) Hungarian forint – (84,030) (84,030) Indonesian rupiah – (99,985) (99,985) Moroccan dirham – (39,835) (39,835) Mexican peso – (275,221) (275,221) Malaysian ringgitt (153) (39,005) (39,158) Polish zloty – (55,212) (55,212) South African rand – (399,173) (399,173) Thai baht (378) – (378) Turkish lira – (611,199) (611,199) Taiwan dollar – (3,978,039) (3,978,039) UK sterling – (4,666,916) (4,666,916) US dollar (233,370) (886,935) (1,120,305)

Total £(233,901) £(14,515,520) £(14,749,421)







13. Related Party TransactionsBlackRock Fund Managers Limited, as Manager and Registrar of the Fund, together with The RoyalBank of Scotland plc, as Trustee, are regarded as related parties to the Fund. BlackRock FundManagers Limited acts as either principal or agent for the Trustee in respect of all transactions ofunits of the Fund. The aggregate monies received through creation and paid through cancellation aredisclosed in the Statement of Change in Net Assets Attributable to Unitholders. Any amounts due toor from BlackRock Fund Managers Limited at the period end are disclosed in Notes 7 and 9.

Management fees and registration fees paid to BlackRock Fund Managers Limited and fees paid tothe Trustee are shown in Note 4. The balances due at the period end in respect of these fees areshown in Note 9.

At the balance sheet date Nutraco Nominees Limited held 104,848,981 units (97%) of the total units in the Fund. As Nutraco Nominees Limited is a material unitholder in the Fund, it is regarded as arelated party in accordance with FRS8 ‘Related Party Disclosures’.

No other transactions were entered into with associates of the Manager during the period.


31.1.2010 31.1.2010£ £

Purchases in period before transaction costs 123,947,848 Commissions and other costs (including stamp duty) 47,128 Total purchase costs 47,128

Gross purchases total £123,994,976

Analysis of total sale costs:£ £

Gross sales before transaction costs 22,934,621 Commissions and other costs (23,517) Total sale costs (23,517)

Total sales net of transaction costs £22,911,104




Fixed Income Tracker Investment Objective & Policy

The aim of the Fund is to seek to achieve a total return for investors by tracking closely the performanceof the FTSE Actuaries Government Securities UK Gilts All Stocks Index by investing in fixed incomesecurities contained in the Index. Investment will be made directly into constituent issues and via othertransferable securities giving exposure to such issues. The Fund may also invest in other transferablesecurities, permitted money market instruments, permitted deposits, and units in collective investmentschemes. Derivatives and forward transactions may be used for hedging purposes and meeting theinvestment objectives of the Fund. The scheme property of the Fund will in all cases be restricted toinvestment in property which is eligible as a permitted link in IPRU (INS), or such other equivalent rulesas may replace them from time to time.

The Fund is a sub-fund of BlackRock Collective Investment Funds , a UCITS scheme established underthe Financial Services Authority's Collective Investment Schemes Sourcebook "the Sourcebook". Prior to10 July 2009 the Collective Investment Funds were known as the Qualified Investor Schemes (1). The Fundwas authorised by the FSA on 21 June 2005 and subsequently launched on 18 July 2005. The Fund waspreviously known as Merrill Lynch Fixed Income Tracker Fund. It adopted its present name with effectfrom 28 April 2008.

93

Emerging Markets Equity Tracker Distribution Table for the period ended 31 January 2010

Final Distribution in Pence per UnitGroup 1 – Units purchased prior to 31 January 2010

Accumulation UnitsGroup 1

Net revenue (dividend) 0.1473Distribution payable 31.3.2010 0.1473

Note: the Fund launched on 20 November 2009 therefore all units in the period are Group 1 and no equalisation is applicable.

Fixed Income Tracker Investment Report




31.12.2008 31.12.2007 31.12.2006 31.12.2005 31.12.2004to 31.12.2009 to 31.12.2008 to 31.12.2007 to 31.12.2006 to 31.12.2005*

Fixed Income -1.8% +11.7% +4.1% -0.6% –

Performance Table


to 31.1.2010 to 31.1.2010


The Benchmark returned:Total Return (with net income reinvested)UK Gilts All-Stocks† +4.0% +19.1%


† Source: Morningstar. Prior to 10 July 2009 the Collective Investment Funds were known as the Qualified Investor Schemes. All fundfigures quoted are based on bid to bid, dealing prices (the price at which units are sold). Performance is calculated net of fees.



The Fund met its objective of tracking the benchmarkOver 12 months to 31 January 2010, the BlackRock Fixed Income Tracker Fund met its objective of closelytracking the FTSE Actuaries Government Securities UK Gilts All-Stocks index, matching the performancein returning 3.2%*.

Here, we focus on the second six months of the period, during which time the Fund gained by 2.4%* andthe benchmark returned 2.2%*.


Investing in UK gilts to match the FTSE Actuaries Government Securities UK Gilts All-Stocks indexThe Fund seeks to achieve a total return for investors by tracking closely the performance of the FTSEActuaries UK Gilts All-Stocks index. Investment will be made directly into constituent issues and via othertransferable securities giving exposure to such issues.

Unprecedented rate cuts were positive for Gilts, particularly in the first half of 2009The economic slowdown accelerated during 2009 amid further concerns regarding banks’ debts and thepossibility of the recession becoming a 1930’s-style depression/deflationary slump. By the end of the firstquarter of 2009 the Bank of England (BoE) had dropped the base interest rate to 0.5% (where it hasstayed) and introduced “Quantitative Easing” in an effort to stimulate the economy. The combined effect of this caused UK government bond (Gilt) yields to fall dramatically, thus generating strong positivereturns for UK Gilt holders.

Risk appetite returned during the yearFrom the lows in March 2009, demand for ‘risk assets’ (equities, corporate bonds, emerging markets)accelerated rapidly during the second and third quarters, driven by expectations of a sharp recovery. Giltmarkets remained volatile in this environment, as corporate bond markets steadied and the sentimenttowards the financial sector improved. On the back of strong corporate performance the market wasquick to price in a faster-than-expected economic recovery, which has yet to be forthcoming. As we moveinto 2010 concerns about a “double-dip” recession and the need for a significant fiscal debt reductionstrategy persist.

The long-term economic outlook remains challenging In the UK, as the Asset Purchase Programme approaches an end, the biggest concern remains the abilityof the Debt Management Office to issue new Gilts into the market without the BoE buying on the otherside. The risks to the Gilt market remain elevated in the run up to the general election, as the marketawaits evidence of a credible deficit reduction plan. The most significant challenge in the year ahead forpolicy-makers remains to be how and when they withdraw the extraordinary stimulus currently applied toeconomies. As concerns about sovereign risk on the continent increase, it seems the removal or unwindof these measures across global markets in the short term is increasingly unlikely.



Fixed Income Tracker Portfolio Statementat 31 January 2010

UK Sterling Denominated Fixed Rate Government Bonds – 96.80%; 2009 97.97% £22,922,000 Treasury 2.25% Gilt 2014 22,582,181 3.67 £13,600,000 Treasury 2.75% Stock 2015 13,451,420 2.19 £14,207,000 Treasury 3.25% Gilt 2011 14,716,676 2.39 £17,900,000 Treasury 3.75% Gilt 2019 17,534,840 2.85 £25,303,000 Treasury 4% Stock 2016 26,228,457 4.26

£8,434,000 Treasury 4% Stock 2060 7,960,853 1.29 £16,363,000 Treasury 4% Gilt 2022 16,045,149 2.61 £13,613,000 Treasury 4.25% Loan Stock 2055 13,545,956 2.20 £20,905,000 Treasury 4.25% Stock 2011 21,694,686 3.53 £20,060,000 Treasury 4.25% Stock 2027 19,732,521 3.21 £15,675,000 Treasury 4.25% Stock 2032 15,368,946 2.50 £13,464,000 Treasury 4.25% Gilt 2039 13,144,567 2.14 £18,200,000 Treasury 4.25% Stock 2036 17,748,185 2.89 £14,767,000 Treasury 4.25% Stock 2046 14,567,276 2.37 £12,957,000 Treasury 4.25% Gilt 2049 12,806,375 2.08 £26,031,000 Treasury 4.5% Gilt 2013 27,834,298 4.53 £23,010,000 Treasury 4.5% Gilt 2019 24,026,467 3.91

£9,350,000 Treasury 4.5% Bonds 2034 9,451,915 1.54 £16,680,000 Treasury 4.5% Stock 2042 17,079,903 2.78

£8,399,000 Treasury 4.75% Stock 2010 8,518,056 1.38 £16,625,000 Treasury 4.75% Stock 2015 18,055,997 2.94 £17,581,891 Treasury 4.75% Stock 2020 18,648,672 3.03 £18,360,000 Treasury 4.75% Stock 2030 19,193,085 3.12 £14,277,000 Treasury 4.75% Stock 2038 15,131,835 2.46 £17,245,000 Treasury 5% Gilt 2018 18,793,170 3.06 £22,412,000 Treasury 5% Stock 2012 24,013,898 3.90 £22,470,000 Treasury 5% Stock 2014 24,615,323 4.00 £18,680,000 Treasury 5% Stock 2025 19,957,245 3.24 £18,166,000 Treasury 5.25% Stock 2012 19,618,826 3.19 £11,408,000 Treasury 6% Stock 2028 13,844,464 2.25

£4,797,000 Treasury 6.25% Stock 2010 5,013,704 0.82 £350,000 Treasury 7.75% Stock 2015 391,851 0.06

£6,428,000 Treasury 8% Stock 2013 7,714,082 1.25 £7,550,000 Treasury 8% Stock 2015 9,501,486 1.54

£19,441,000 Treasury 8% Stock 2021 26,371,230 4.29 £8,674,000 Treasury 8.75% Stock 2017 11,641,159 1.89 £5,326,000 Treasury 9% Conversion Stock 2011 5,938,889 0.97

£t3,850,000 War 3.5% Loan Stock Perpetual 2,888,174 0.47

595,371,817 96.80

Portfolio of investments 595,371,817 96.80 Net other assets 19,680,113 3.20


Note: comparative figures show percentages for each category of holdings at 31 January 2009.



Fixed Income Tracker Performance Record



2010† 1.53132009 3.37242008 3.48952007 3.57862006 3.8940



p p

2010† 113.1 111.12009 115.9 107.72008 114.0 98.232007 102.0 94.002006 105.7 98.162005* 103.5 94.77

† To 31 March.





Net Asset Value


£ p

2010 546,569,561 615,051,930 112.52009 345,498,123 375,457,467 108.72008 335,479,700 343,528,646 102.4

31.1.2010 31.1.2009Notes £ £ £ £

IncomeNet capital (losses)/gains

during the year 2 (539,480) 9,164,442 Revenue 3 19,197,013 16,902,823 Expenses 4 (1,122,901) (831,462) Finance costs: Interest 6 – –

Net revenue before taxation 18,074,112 16,071,361 UK Income tax witheld (3,614,822) (3,214,272)


Total return before distributions 13,919,810 22,021,531 Finance costs: Distributions 6 (14,459,290) (12,857,089)

Change in net assets attributable tounitholders from investment activities £(539,480) £9,164,442

31.1.2010 31.1.2009£ £ £ £




224,508,229 10,102,148 Change in net assets attributable to

unitholders from investment activities (539,480) 9,164,442 Retained distribution on accumulation units 15,625,714 12,662,231


Comparative figures have been restated for the presentation changes following adoption of the Statement of Recommended Practice (“theSORP”) for Authorised Funds issued by the Investment Management Association (“IMA”) in November 2008 (see Accounting Policies).

Fixed Income Tracker Statement of Change in Net AssetsAttributable to Unitholders for the year ended 31 January 2010

Fixed Income Tracker Statement of Total Return for the year ended 31 January 2010

Fixed Income Tracker Portfolio Turnover




The PTR is calculated by the Manager in accordance with the FSA requirements laid out in COLL 4 Annex 2 R.


Fixed Income Tracker Notes to Financial Statementsat 31 January 2010


2. Net Capital (Losses)/Gains on Investments During the Year31.1.2010 31.1.2009

£ £

(Losses)/gains on non-derivative securities (537,786) 9,164,881 Transaction costs (1,694) (439)

Net Capital (Losses)/Gains on Investments £(539,480) £9,164,442

3. Revenue31.1.2010 31.1.2009

£ £

Interest from UK fixed interest securities 19,187,849 16,796,005 Interest from UK bank deposits 9,164 106,818

Total revenue £19,197,013 £16,902,823

4. Expenses31.1.2010 31.1.2009

£ £

Payable to the Manager or associates of the Manager:– Manager's service charge 1,041,965 762,690 – Registrar's fees 77 55 – VAT refunds on registrar's fees (4) (3)

1,042,038 762,742


59,211 44,222

Other expenses:– Safe custody fees 13,031 12,898 – Audit fee 8,550 8,930 – Legal & professional services 71 2,670

21,652 24,498

Total expenses £1,122,901 £831,462

Fixed Income Tracker Balance Sheetat 31 January 2010

31.1.2010 31.1.2009Notes £ £



Liabilities:– Creditors 9 (4,185,831) (1,868,524)






£ £

Cash and bank balances 10,391,628 3,571,824


9. Creditors31.1.2010 31.1.2009

£ £

Purchases awaiting settlement 1,942,600 –Accrued Manager's service charge 206,215 148,459 Accrued Registrar's fee 7 10 Accrued Trustee's fee 12,208 4,524 Accrued safe custody fees 11,874 7,106 Accrued audit fee 8,740 8,930 Transaction costs 1,257 439 Income tax payable 2,002,930 1,699,056

Total creditors £4,185,831 £1,868,524

10. Derivatives and Other Financial Instruments(a) The Fund’s financial instruments, comprise securities and other investments, cash balances and


The Fund’s property is invested with the aim of achieving capital growth by tracking closely theperformance of the FTSE Actuaries Government Securities UK Gilts All Stocks Index by investingin securities in the Index.


Risk Impact of risk

Interest rate risk The Fund’s investment objective is to produce a total return bytracking closely the FTSE Actuaries Government Securities UKGilts All Stocks Index by investing in fixed securities contained inthe Index. Revenue is generated by the holding of bonds, whichcontractually oblige the borrower to repay the Fund interest underspecific terms.

Changes to interest rates may affect the cash inflows andoutflows calculated with reference to financial assets andfinancial liabilities held by the Fund.

Due to the nature and range of the Fund’s investments at thebalance sheet date, the Fund has little exposure to interest rate risk.

Fixed Income Tracker Notes to Financial Statements continued


31.1.2010 31.1.2009£ £

Total current tax charge for the year [see Note 5(b)] £0 £0


31.1.2010 31.1.2009£ £


Corporation tax at 20% (2008: 20%) 3,614,822 3,214,272 Effects of:Tax deductible interest distributions (3,614,822) (3,214,272)

Total current tax charge for the year [see Note 5(a)] £0 £0



31.1.2010 31.1.2009£ £

Interim 7,256,160 6,507,877 Final 8,369,554 6,154,354

15,625,714 12,662,231 Add: Amounts deducted on cancellation of units 1,557,228 1,891,969 Less: Amounts received on creation of units (2,723,652) (1,697,111)

Net distribution for the year 14,459,290 12,857,089 Finance costs: Interest – –


Details of the interim and final distributions per unit are set out in the tables on page 108.

7. Debtors31.1.2010 31.1.2009

£ £

Amounts receivable for creation of units 5,937,366 1,328,592 Accrued revenue 7,536,950 4,592,186

Total debtors £13,474,316 £5,920,778


Risk Impact of risk


The Manager maintains a list of approved counterparties. This list is regularly monitored and revised for changes based on the counterparty’s credit-worthiness, market reputation andexpectations of future financial performance. Transactions willonly be opened with financial intermediaries on the approvedcounterparties list.

These risks are monitored by the Manager in pursuance of the investment objective and policy as set out in this Manager's Report. Further information on the investment portfolio is set out in the Investment Report and Portfolio Statement. Adherence to investment guidelines and toinvestment and borrowing powers set out in the Trust Deed, the Prospectus and in the rules ofthe Collective Investment Schemes Sourcebook mitigates the risk of excessive exposure to anyparticular type of security or issuer. Further information on the investment portfolio is set out inthe Investment Report and Portfolio Statement.

(b) Currency ExposuresThe net assets of the Fund are denominated mainly in sterling, therefore the balance sheet andtotal return are unlikely to be directly affected by currency movements.

(c) Interest Rate Risk Profile of Financial Assets and LiabilitiesThe Interest Rate Risk Profile of Financial Assets and Liabilities at the balance sheet date was as follows:



UK sterling 10,391,628 595,371,817 13,474,316 619,237,761

Total £10,391,628 £595,371,817 £13,474,316 £619,237,761


£ £ £

UK sterling – (4,185,831) (4,185,831)

Total £0 £(4,185,831) £(4,185,831)


Risk Impact of risk


To manage these risks, the Manager undertakes research inorder to achieve the best price for any transactions entered intoon behalf of the Fund.

Credit risk The Fund holds bonds issued by the UK government in order toachieve its investment objective of generating a high total return.

The borrower receives from the Fund a principal amount. TheFund will then receive interest based on the coupon rate of thebond and repayment of the initial principal amount on the bond’smaturity date.

Any impairment to the borrower’s ability to repay amounts duemay result in changes to the tradable value of the bond and theamount to be received upon maturity of the bond. The ability ofthe borrower to repay not only the principal value but also anyinterest due on the bond, referred to as the borrower’s creditrating, is monitored by the Manager.

The Manager may undertake its own research of the borrower’sfinancial position in order to assess the ability of the borrower torepay amounts due.



The BlackRock Pricing Committee will also review significantmarket events which may impact the liquidity of bonds in theportfolio.

Due to the nature and range of the Fund’s investments at thebalance sheet date, the Fund has little exposure to liquidity risk.




13. Related Party TransactionsBlackRock Fund Managers Limited, as Manager and Registrar of the Fund, together with The RoyalBank of Scotland plc, as Trustee, are regarded as related parties to the Fund. The Manager acts as either principal or agent for the Trustee in respect of all transactions of units of the Fund. Theaggregate monies received through creation and paid through cancellation are disclosed in theStatement of Change in Net Assets Attributable to Unitholders. Any amounts due to or from theManager at the period end are disclosed in Notes 7 and 9.

Management fees and registration fees paid to BlackRock Fund Managers Limited and fees paid tothe Trustee are shown in Note 4. The balances due at the period end in respect of these fees areshown in Note 9.


At the balance sheet date MetLife Europe Limited held 119,029,194 units (22%) of the total units in theFund. As MetLife Europe Limited is a material unitholder in the Fund, it is regarded as a related partyin accordance with FRS8 ‘Related Party Disclosures’.



31.1.2010 31.1.2010 31.1.2009 31.1.2009£ £ £ £


Commissions and other costs (including stamp duty) – –

Total purchase costs – –



Gross sales before transaction costs 193,248,217 208,186,315 Commissions and other costs – –Total sale costs – –


15. Non Adjusting Post Balance Sheet EventSince the last business day of the accounting period, the Fund's quoted mid price has fallen onAccumulation Units from 112.5p to 111.7p as at 15 March 2010, a fall of 0.71%.





UK sterling 592,483,643 4.46 13.51 yearsUK sterling perpetual 2,888,174 4.67 undated





UK sterling 3,571,824 367,833,389 5,920,778 377,325,991

Total £3,571,824 £367,833,389 £5,920,778 £377,325,991



UK sterling – (1,868,524) (1,868,524)

Total £0 £(1,868,524) £(1,868,524)




UK sterling 365,590,254 4.75 13.81 yearsUK sterling perpetual 2,243,135 4.57 undated


The floating rate financial assets and liabilities includes: Sterling denominated bank balances which bear interest rates based on 0.125% under the sixmonth LIBOR and overdraft interest based on 3% over the base rate.All overseas deposits and loans bear interest at rates determined by the relevant Authority.




Japan Equity Tracker Investment Objective & Policy

The aim of the Fund is to seek to achieve capital growth for investors by tracking closely the performanceof the Topix Ist Section Index until 31 October 2005 and the FTSE World Japan Index from 1 November 2005by investing in companies in the Index. Investment will be made directly into constituent companies andvia other transferable securities giving exposure to such companies. The Fund may also invest in permittedmoney market instruments, permitted deposits, and units in collective investment schemes. Derivativesand forward transactions may be used for hedging purposes and meeting the investment objectives of theFund. The scheme property of the Fund will in all cases be restricted to investment in property which iseligible as a permitted link in IPRU (INS), or such other equivalent rules as may replace them from timeto time.

The Fund is a sub-fund of BlackRock Collective Investment Funds , a UCITS scheme established underthe Financial Services Authority's Collective Investment Schemes Sourcebook "the Sourcebook". Prior to10 July 2009 the Collective Investment Funds were known as the Qualified Investor Schemes (1). The Fundwas authorised by the FSA on 21 June 2005 and subsequently launched on 15 July 2005. The Fund waspreviously known as Merrill Lynch Japan Equity Tracker Fund. It adopted its present name with effectfrom 28 April 2008.



Gross Revenue 1.9141 1.0143Income tax 0.3828 0.2029Net revenue (interest) 1.5313 0.8114Equalisation† – 0.7199Distribution payable 31.3.2010 1.5313 1.5313Distribution paid 31.3.2009 1.7813 1.7813



Gross Revenue 1.9889 0.9955Income tax 0.3978 0.1991Net revenue (interest) 1.5911 0.7964Equalisation† – 0.7947Distribution paid 30.9.2009 1.5911 1.5911Distribution paid 30.9.2008 1.7381 1.7381


Fixed Income Tracker Distribution Tablefor the year ended 31 January 2010


Japan Equity Tracker Investment Report

The Fund met its objective of tracking the benchmarkOver 12 months to 31 January 2010, the BlackRock Japan Equity Tracker Fund met its objective of closelytracking the FTSE World Japan index, returning 2.8%* versus the benchmark return of 4.1%*.

Here, we focus on the second six months of the period, during which time the Fund returned 4.4%*,versus the benchmark return of 4.1%*.


Investing in Japanese companies to match the FTSE World Japan indexThe Fund seeks to achieve capital growth for investors by tracking closely the performance of the FTSE World Japan index. Investment will be made directly into constituent companies and via othertransferable securities giving exposure to such companies.



Japan – underperformance over six months, but a stronger finish to the periodRelative weakness from the Japanese stock market over six months was influenced by: marked strengthin the yen, which had negative implications, especially for exporters; uncertainty of financial policy by thenew Democratic Party of Japan (“DPJ”) government and the tighter capital requirement, which causedfinancials to underperform; and dilutive equity issuance announcements by financial institutions, alongwith concerns that other industries are to follow suit.

However, the announcement in December by the Bank of Japan, for additional monetary expansion tofight off deflation, boosted investors’ confidence and resulted in relative outperformance at the end of2009 and the start of 2010.

Japan’s economic recovery continues, although hardly at a breakneck pace. The export market is on asounder footing than it appears – although export values peaked in June, the translation effects of yenstrength explain the loss of momentum. However, domestic conditions remain challenging, with weakfinancial performance and increasing regulatory scrutiny hampering the consumer finance companies.These firms are important not just to consumer firepower but also to small businesses, which make up a larger segment of the economy than in the West. * Performance figures quoted are based on bid to bid, dealing prices (the price at which units are sold) and are not the same as the net asset

value reported in the financial statements which is at close of business. Performance is calculated net of fees.




31.12.2008 31.12.2007 31.12.2006 31.12.2005 31.12.2004to 31.12.2009 to 31.12.2008 to 31.12.2007 to 31.12.2006 to 31.12.2005*

Japan Equity -4.2% -1.9% -7.8 -7.7% –

Performance Table


to 31.1.2010 to 31.1.2010


The Benchmark returned:Total Return (with net income reinvested)FTSE World Japan†* +4.1% +11.3%

This Annual Report covers the year ended 31 January 2010, the first six months of which werecommented on in the Interim Report to 31 July 2009. For a copy, please contact us.

† Source: BlackRock/Factset. Net of withholding tax. Prior to 10 July 2009 the Collective Investment Funds were known as the QualifiedInvestor Schemes. All fund figures quoted are based on bid to bid, dealing prices (the price at which units are sold). * TSE 1st Section(TOPIX) Index used prior to 01/11/2005. Performance is calculated net of fees.




Japan Equity Tracker Portfolio Statement at 31 January 2010

JAPAN – 98.02%; 2009 98.22%

Automobiles & Parts – 11.20%; 2009 9.38% 19,700 Aisin Seiki 324,930 0.18 83,400 Bridgestone 830,179 0.46 23,000 Daihatsu Motors 137,273 0.08 59,000 Denso 1,082,397 0.60 78,000 Fuji Heavy Industries 227,666 0.13 41,000 GS Yuasa 163,700 0.09

182,900 Honda Motor 3,871,651 2.14 43,300 JTEKT 307,315 0.17 11,000 Koito Manufacturing 120,097 0.07

177,000 Mazda Motor 297,304 0.17 551,000 Mitsubishi Motor 474,132 0.26

15,000 NGK Spark Plug 107,803 0.06 25,000 NHK Spring 135,270 0.08

301,400 Nissan Motor 1,527,068 0.85 17,400 NOK 161,225 0.09 18,900 Stanley Electric 225,084 0.13 17,400 Sumitomo Rubber 85,044 0.05 54,300 Suzuki Motor 765,165 0.43

5,400 Takata 73,975 0.04 4,900 Tokai Rika 64,157 0.04 4,100 Tokai Rubber Industries 29,607 0.02 6,900 Toyoda Gosei 118,416 0.07

10,100 Toyota Boshoku 137,874 0.08 17,400 Toyota Industries 318,377 0.18

344,800 Toyota Motor 8,283,809 4.60 18,500 Yamaha Motor 157,281 0.09 34,000 Yokohama Rubber 80,281 0.04

20,107,080 11.20

Banks – 9.97%; 2009 11.28% 39,000 77th Bank 129,136 0.07

110,000 Aozora Bank 87,082 0.05 24,000 Awa Bank 81,781 0.05 38,000 Bank of Kyoto 195,669 0.11 20,000 Bank of Nagoya 48,325 0.03

137,000 Bank of Yokohama 402,704 0.22 89,000 Chiba Bank 334,518 0.19 24,000 Chugoku Bank 190,493 0.11 37,000 Daishi Bank 77,176 0.04

115,900 Fukuoka Financial 264,088 0.15



Japan Equity Tracker Performance Record

Net Asset Value


£ p

2010 172,177,335 179,917,105 104.52009 122,279,285 122,801,885 100.42008 117,906,974 124,865,353 105.9



2010† 0.64702009 1.57862008 1.23892007 0.92652006 0.8992



p p

2010† 110.5 102.52009 107.9 84.342008 117.3 81.112007 120.3 116.02006 139.1 110.62005* 129.4 93.62

† To 31 March.





Chemicals – 4.17%; 2009 3.69% 19,000 Air Water 135,111 0.08

144,000 Asahi Kasei 446,080 0.25 37,000 Daicel Chemical 138,051 0.08 79,000 Dainippon Ink & Chemicals 87,013 0.05 68,000 Denki Kagaku Kogyo 172,264 0.10 14,000 Hitachi Chemical 186,390 0.10 26,000 JSR 318,947 0.18 23,000 Kaneka 92,465 0.05 28,000 Kansai Paint 141,093 0.08 52,000 Kuraray 377,295 0.21

5,000 Lintec 59,787 0.03 155,040 Mitsubishi 401,300 0.22

49,000 Mitsubishi Gas Chemical 161,910 0.09 60,000 Mitsubishi Rayon 154,889 0.09

101,000 Mitsui Chemicals 167,562 0.09 9,000 Nagase 65,177 0.04

27,000 Nippon Paint 104,643 0.06 19,000 Nippon Shokubai 104,898 0.06 23,000 Nissan Chemicals 188,572 0.10 17,200 Nitto Denko 411,453 0.23 43,900 Shin-Etsu Chemical 1,426,408 0.78

148,000 Showa Denko 188,482 0.10 26,000 Sumitomo Bakelite 87,701 0.05

170,000 Sumitomo Chemical 475,130 0.26 41,000 Taiyo Nippon Sanso 251,195 0.14

100,000 Teijin 188,620 0.10 22,000 Tokai Carbon 64,062 0.04 35,000 Tokuyama 115,168 0.06

144,000 Toray 491,679 0.27 60,000 Tosoh 95,411 0.05

102,000 UBE 163,604 0.09 24,000 Zeon 73,521 0.04

7,535,881 4.17

Construction & Materials – 1.74%; 2009 1.77% 120,000 Asahi Glass 748,422 0.42

15,000 Comsys 92,623 0.05 12,400 Daito Trust Construction 367,906 0.20

172,000 Haseko 89,987 0.05 32,200 JS Group 354,439 0.20

107,000 Kajima 139,214 0.08 11,000 Kandenko 43,617 0.02



Japan Equity Tracker Portfolio Statement continued

50,000 Gunma Bank 159,708 0.09 54,000 Hachijuni Bank 193,301 0.11 24,000 Higo Bank 81,286 0.05 62,000 Hiroshima Bank 152,369 0.08 34,000 Hokkoku Bank 75,599 0.04

140,000 Hokuhoku Financial 181,185 0.10 26,000 Hyakugo Bank 73,920 0.04 31,000 Hyakujushi Bank 72,130 0.04 33,000 Iyo Bank 169,242 0.09 83,000 Joyo Bank 207,978 0.12 36,000 Juroku Bank 87,729 0.05 21,000 Kagoshima Bank 93,098 0.05 42,000 Kansai Urban Banking 37,875 0.02 19,000 Keiyo Bank 55,457 0.03

1,842,533 Mitsubishi UFJ Financial 5,923,379 3.28 167,000 Mitsui Trust 369,028 0.21

1,510,523 Mizuho Financial 1,819,712 1.01 200,000 Mizuho Trust & Banking 125,288 0.07

3,300 Musashino Bank 55,452 0.03 38,000 Nanto Bank 128,179 0.07 79,400 Nishi-Nippon City Bank 127,901 0.07 34,300 Ogaki Kyoritsu Bank 72,961 0.04 64,947 Resona 503,872 0.28 17,000 San-in Godo Bank 83,791 0.05 39,492 Sapporo Hokuyo 99,501 0.06 27,000 Shiga Bank 99,439 0.06

208,700 Shinsei Bank 162,345 0.09 71,000 Shizuoka Bank 381,722 0.21

179,473 Sumitomo Mitsui 3,626,140 2.02 167,000 Sumitomo Trust & Banking 575,959 0.32

26,000 Suruga Bank 143,007 0.08 27,000 Yamaguchi Bank 166,722 0.09

17,916,247 9.97

Beverages – 1.14%; 2009 1.05% 49,200 Asahi Breweries 594,062 0.33

7,300 Coca-Cola West Japan 75,480 0.04 9,100 ITO EN 84,193 0.05

13,300 Kagome 144,110 0.08 101,000 Kirin Brewery 957,398 0.53

40,000 Sapporo 131,346 0.07 22,000 Takara 75,269 0.04

2,061,858 1.14






53,000 Minebea 175,128 0.10 11,600 Mitsumi Electric 125,770 0.07 30,000 Murata 1,020,201 0.57 34,000 NGK Insulators 460,853 0.26

7,600 Nidec 464,584 0.26 8,000 Nidec Sankyo 43,672 0.02

34,000 Nippon Electric Glass 298,419 0.17 31,700 Omron 392,580 0.22 81,000 Sumitomo Electric 661,871 0.37 16,000 Taiyo Yuden 152,879 0.08 13,000 TDK 524,419 0.29 15,000 Toshiba Tec 35,005 0.02 13,800 Ushio 145,728 0.08

7,500 Yamatake 102,330 0.06

9,965,022 5.56

Fixed Line Telecommunications – 1.01%; 2009 1.41% 69,312 NTT 1,817,903 1.01

Food & Drug Retailers – 0.36%; 2009 0.44% 5,600 Circle K Sunkus 45,104 0.03 9,700 Familymart 190,240 0.11

10,100 Lawson 284,369 0.16 5,361 Matsumotokiyoshi 72,924 0.04 2,500 Sundrug 35,022 0.02

627,659 0.36

Food Producers – 1.40%; 2009 1.51% 72,000 Ajinomoto 424,271 0.24 15,000 Ezaki Glico 102,123 0.06

7,200 House Foods 65,673 0.04 21,000 Kikkoman 153,092 0.09

7,708 Meiji Holdings 180,144 0.10 30,000 Nichirei 69,803 0.04 23,000 Nippon Meat Packers 180,180 0.10 25,500 Nisshin Seifun 211,702 0.12 13,100 Nissin Food Products 268,826 0.15 15,500 QP 107,128 0.06 11,000 Toyo Suisan Kaisha 180,070 0.10 24,000 Yakult Honsha 433,028 0.24 15,000 Yamazaki Baking 113,069 0.06

2,489,109 1.40




1,000 Katsumura Construction – – 27,000 Kinden 151,667 0.08 30,000 Matsushita Electric Works 204,660 0.11 90,000 Nippon Sheet Glass 144,356 0.08 74,000 Obayashi 162,502 0.09 79,000 Shimizu 186,534 0.10 57,000 Sumitomo Osaka Cement 51,402 0.03 95,000 Taiheiyo Cement 66,705 0.04

110,000 Taisei 131,759 0.07 32,000 Toda 67,628 0.04 38,000 Toto 144,136 0.08

3,147,557 1.74

Electricity – 4.39%; 2009 6.41% 78,200 Chubu Electric Power 1,231,686 0.68 37,300 Chugoku Electric Power 455,512 0.25 22,400 Electric Power Development 402,463 0.22 21,300 Hokkaido Electric Power 252,054 0.14 22,100 Hokuriku Electric Power 297,881 0.17 96,300 Kansai Electric Power 1,364,960 0.76 47,400 Kyushu Electric Power 637,262 0.35 23,600 Shikoku Electric Power 401,279 0.22 49,800 Tohoku Electric Power 623,933 0.35

134,900 Tokyo Electric Power 2,261,248 1.25

7,928,278 4.39

Electronic & Electrical Equipment – 5.56%; 2009 4.41% 17,800 Alps Electric 63,350 0.04 75,000 Fuji Electric 92,417 0.05 49,000 Fujikura 163,597 0.09 71,000 Furukawa Electric 214,077 0.12

8,400 Hamamatsu Photonics 124,671 0.07 4,000 Hirose Electric 266,271 0.15

435,042 Hitachi 928,390 0.52 19,000 Hitachi Cable 34,922 0.02

6,400 Hitachi Koki 42,559 0.02 43,100 Hoya 718,009 0.40 15,300 Ibiden 326,505 0.18

5,600 Keyence 802,613 0.45 25,500 Kyocera 1,437,677 0.80

4,300 Mabuchi Motor 146,525 0.08




General Retailers – 2.98%; 2009 3.34% 79,800 Aeon 494,954 0.28

6,700 Aoyama Trading 57,930 0.03 3,700 Autobacs Seven 69,662 0.04

10,800 Benesse 281,774 0.16 9,700 Culture Convenience 28,913 0.02

49 Dena 176,078 0.10 7,100 Don Quijote 99,072 0.06 7,100 Fast Retailing 733,140 0.41

14,000 H20 Retailing 52,428 0.03 39,978 Isetan 233,925 0.13

8,100 Izumi 61,447 0.03 53,800 J Front Retailing 159,994 0.09

5,400 Komeri 85,796 0.05 31,800 Marui 122,589 0.07

3,750 Nitori 176,573 0.10 1,020 Point Inc 36,372 0.02 3,700 Ryohin Keikaku 97,552 0.05

92,623 Seven & I 1,259,921 0.70 6,800 Shimachu 86,272 0.05 2,400 Shimamura 130,850 0.07

33,000 Takashimaya 149,932 0.08 19,000 UNY 90,379 0.05

3,220 USS 121,471 0.07 12,860 Yamada Denki 513,460 0.29

5,320,484 2.98

Health Care Equipment & Services – 0.48%; 2009 0.35% 4,000 Nipro 52,235 0.03 1,900 Sysmex 66,182 0.04

21,500 Terumo 745,944 0.41

864,361 0.48

Household Goods – 0.95%; 2009 0.96% 61,000 Daiwa House 400,604 0.22 12,900 Kokuyo 61,096 0.03 15,400 Leopalace 21 35,196 0.02 13,900 Makita 288,974 0.16

9,000 Panahome 35,315 0.02 5,500 Rinnai 159,776 0.09




Forestry & Paper – 0.27%; 2009 0.35% 11,775 Nippon Paper 190,812 0.11

108,000 Oji Paper 282,517 0.16

473,329 0.27

Gas, Water & Multiutilities – 0.74%; 2009 1.06% 216,000 Osaka Gas 471,357 0.26

56,000 Toho Gas 181,956 0.10 272,000 Tokyo Gas 683,438 0.38

1,336,751 0.74

General Financial – 2.77%; 2009 2.16% 6,270 Acom 67,031 0.04

10,400 Aeon Credit Service 66,653 0.04 24,600 Credit Saison 190,344 0.11

234,000 Daiwa Securities 729,712 0.41 4,900 Hitachi Capital 40,680 0.02 4,800 Jafco 73,454 0.04

51 Kabu.com Securities 30,649 0.02 14,100 Matsui Securities 59,791 0.03 47,000 Mizuho Investors Securities 29,443 0.02

151 Monex Beans 40,280 0.02 492,900 Nomura 2,320,878 1.28

13,000 Okasan 38,392 0.02 14,770 Orix 691,396 0.38 13,300 Promise 76,267 0.04

2,246 SBI 267,172 0.15 65,300 Shinko Securities 119,573 0.07

6,840 Takefuji 20,294 0.01 5,930 UFJ Lease 127,160 0.07

4,989,169 2.77

General Industrials – 1.17%; 2009 0.88% 147,000 Ishikawajima-Harima Heavy Industries 140,660 0.08 129,000 Mitsubishi Materials 207,799 0.12

27,000 Rengo 99,624 0.06 421,000 Toshiba 1,440,376 0.80

21,800 Toyo Seikan Kaisha 190,139 0.11

2,078,598 1.17




Industrial Metals – 3.38%; 2009 3.02% 43,000 Daido Steel 97,683 0.05 41,000 Dowa Mining 141,968 0.08 20,000 Dowa Mining Warrants 20/1/2010 – – 20,000 Hitachi Metals 120,469 0.07 62,500 JFE 1,359,579 0.76

316,000 Kobe Steel 350,228 0.19 9,400 Maruichi Steel Tube 105,993 0.06

76,000 Mitsui Mining & Smelting 124,517 0.07 696,285 Nippon Steel 1,572,165 0.87 100,000 Nisshin Steel 106,013 0.06

1,900 Osaka Titanium Technologies 38,323 0.02 20,000 Pacific Metals 83,020 0.05

489,000 Sumitomo Metal Industries 838,196 0.47 79,000 Sumitomo Metal Mining 686,315 0.37

4,000 Toho Titanium 46,315 0.03 15,600 Tokyo Steel Manufacturing 96,436 0.05 18,900 Toyota Tsusho 179,807 0.10

7,200 Yamato Kogyo 141,556 0.08

6,088,583 3.38

Industrial Transportation – 1.11%; 2009 1.23% 14,000 Fukuyama Transporting 41,249 0.02 27,000 Kamigumi 126,017 0.07 63,000 Kawasaki Kisen Kai 138,780 0.08 17,000 Mitsubishi Logistics 115,974 0.06

120,000 Mitsui OSK Lines 467,558 0.26 105,000 Nippon Express 274,669 0.15 166,000 Nippon Yusen Kabushiki Kaisha 356,533 0.20

20,000 Seino 83,296 0.05 46,000 Yamato 393,610 0.22

1,997,686 1.11

Leisure Goods – 7.26%; 2009 6.71% 27,600 Casio Computer 125,208 0.07 52,700 Fuji Photo Film 1,049,171 0.58

1,400 Funai Electric 43,465 0.02 14,400 Konami 147,999 0.08 54,242 Konica Minolta 344,274 0.19

328,000 Matsushita Electric Industries 3,208,524 1.78 25,300 Namco Bandai 156,747 0.09 40,000 Nikon 511,615 0.28 14,200 Nintendo 2,468,238 1.37




55,000 Sekisui Chemical 231,335 0.13 69,000 Sekisui House 406,118 0.23 18,000 Sumitomo Forestry 82,029 0.05

1,700,443 0.95

Industrial Engineering – 5.92%; 2009 4.67% 40,000 Amada 166,591 0.09 26,000 Chiyoda 147,482 0.08 29,400 Daikin 679,012 0.38

2,300 Disco 79,640 0.04 42,000 Ebara 109,579 0.06 23,900 Fanuc 1,421,507 0.79

7,200 Glory 98,336 0.05 30,000 Hino Motors 70,216 0.04 11,600 Hitachi Construction Machinery 152,121 0.08

169,000 Isuzu Motors 222,207 0.12 38,000 Japan Steel Works 290,626 0.16 26,000 JGC 302,123 0.17

164,000 Kawasaki Heavy Industries 263,049 0.15 134,900 Komatsu 1,689,204 0.94

86,000 Kubota 480,720 0.27 13,100 Kurita Water Industries 252,593 0.14

5,700 Misumi Group 61,761 0.03 214,240 Mitsubishi Electric 1,041,220 0.58 451,000 Mitsubishi Heavy Industries 977,968 0.54

81,000 Mitsui Engineering & Shipbuilding 122,114 0.07 11,600 Mori Seiki 72,906 0.04

6,000 Nabtesco 44,030 0.02 56,000 NSK 252,503 0.14 54,000 NTN 144,976 0.08 17,000 Okuma 60,854 0.03

3,700 Shima Seiki 43,860 0.02 30,000 Shimadzu 123,704 0.07

7,100 SMC 533,726 0.30 60,000 Sumitomo Heavy Industries 191,649 0.11 17,600 THK 216,508 0.12

2,900 Toyota Auto Body 31,782 0.02 4,200 Ulvac 66,557 0.04

25,000 Yaskawa Electric 128,558 0.07 26,900 Yokogawa Electric 135,180 0.08

10,674,862 5.92




Oil & Gas Producers – 0.94%; 2009 1.14% 85,000 Cosmo Oil 115,272 0.06

2,700 Idemitsu Kosan 107,431 0.06 96 Inpex 435,506 0.24

3,800 Japan Petroleum Exploration 110,653 0.06 94,000 Nippon Mining 253,012 0.13

149,000 Nippon Oil 432,849 0.24 14,900 Showa Shell 72,928 0.04 38,000 Tonen General 196,454 0.11

1,724,105 0.94

Personal Goods – 1.57% ; 2009 1.72%3,300 ABC-Mart 63,358 0.04

20,000 Asics 123,085 0.07 34,600 Citizen Watch 141,243 0.08 21,000 Gunze 47,272 0.03 73,000 Kao 1,092,496 0.61

3,000 Kose 37,690 0.02 30,000 Lion 90,042 0.05 19,000 Nisshinbo Industries 103,066 0.06 17,000 Onward Kashiyama 68,695 0.04 42,000 Shiseido 536,906 0.30 10,000 Tokyo Style 43,920 0.02 74,000 Toyobo 69,789 0.04

4,500 Uni-Charm 265,479 0.15 14,000 Wacoal 100,230 0.06

2,783,271 1.57

Pharmaceuticals & Biotechnology – 4.58%; 2009 5.61% 5,100 Alfresa 130,778 0.07

48,500 Astellas Pharmaceuticals 1,115,130 0.62 30,200 Chugai Pharmaceuticals 334,711 0.19 72,200 Daiichi Sankyo 934,896 0.52 21,000 Dainippon Sumitomo Pharmaceuticals 138,780 0.08 30,200 Eisai 699,567 0.39

6,300 Hisamitsu Pharmaceuticals 141,166 0.08 6,000 Kissei Pharmaceuticals 75,379 0.04 2,800 Kobayashi Pharmaceuticals 69,487 0.04

31,000 Kyowa Hakko Kogyo 201,025 0.11 24,300 Mediceo Paltac 188,859 0.10

5,800 Miraca Holdings 108,162 0.06 13,000 Mochida Pharmaceuticals 79,647 0.04 18,000 Nippon Kayaku 93,553 0.05




27,000 Olympus 503,698 0.28 412,000 Sanyo Electric 428,264 0.24

18,300 Sega Sammy 128,118 0.07 111,000 Sharp 828,304 0.46

9,700 Shimano 246,063 0.14 133,000 Sony 2,755,850 1.53

19,800 Yamaha 147,206 0.08

13,092,744 7.26

Life Insurance – 0.34%; 2009 0.50% 117 Sony Financial 199,261 0.11

32,830 T&D 422,620 0.23

621,881 0.34

Media – 1.01%; 2009 0.98% 4,400 Asatu 56,005 0.03

70,000 Dai Nippon Printing 597,045 0.33 18,724 Dentsu 268,875 0.15

63 Fuji Television Network 58,765 0.03 3,870 Hakuhodo 117,753 0.07

640 Nippon Television Network 54,499 0.03 82 Sky Perfect Communications 21,789 0.01

19,000 Toho 196,062 0.11 4,900 Tokyo Broadcasting 45,605 0.03

70,000 Toppan Printing 380,682 0.21 23 TV Asahi 23,275 0.01

1,820,355 1.01

Mobile Telecommunications – 2.68%; 2009 3.39% 2,200 Hikari Tsushin 23,550 0.01

450 KDDI 1,476,090 0.82 2,349 NTT DoCoMo 2,187,853 1.22

71,400 Softbank 1,130,481 0.63

4,817,974 2.68

Non life Insurance – 1.78%; 2009 2.27% 77,000 Aioi Insurance 227,927 0.13 56,333 Mitsui Sumitomo Insurance 877,964 0.49 82,000 Nipponkoa Insurance 292,967 0.16 20,000 Nissay Dowa General Insurance 59,477 0.03 99,000 Sompo Japan Insurance 402,091 0.22 80,100 Tokyo Marine 1,344,874 0.75

3,205,300 1.78 122 BlackRock Collective Investment Funds 123




182,000 Mitsui 1,667,581 0.93 4,500 Nissha Printing 118,490 0.07

23,200 Secom 644,420 0.36 6,400 Sohgo Security Services 45,820 0.03

168,800 Sojitz 192,894 0.11 125,121 Sumitomo 877,691 0.49

4,500 Toppan Forms 29,863 0.02

7,511,704 4.19

Technology Hardware & Equipment – 5.06%; 2009 4.24% 19,900 Advantest 308,503 0.17

799 Axell 18,068 0.01 37,300 Brother Industries 252,920 0.14

178,000 Canon 4,331,584 2.40 10,100 Canon Marketing Japan 86,701 0.05 25,000 Dainippon Screen Manufacturing 76,240 0.04 19,400 Elpida Memory 213,411 0.12

206,080 Fujitsu 788,766 0.44 5,300 Hitachi High-technologies 66,403 0.04

342,000 NEC 550,908 0.31 2,800 NEC Electronics 14,591 0.01

75,000 Ricoh 668,087 0.37 15,400 Rohm 644,557 0.35 19,800 Seiko Epson 203,363 0.11

8,900 Shinko Electric Industries 74,746 0.04 13,800 Sumco 147,913 0.08 17,900 Tokyo Electron 678,957 0.38

9,125,718 5.06

Tobacco – 0.85%; 2009 0.80% 681 Japan Tobacco 1,532,965 0.85

Travel & Leisure – 3.74%; 2009 4.82% 106,000 All Nippon Airways 191,911 0.11

215 Central Japan Railway 979,792 0.54 39,912 East Japan Railway 1,667,745 0.93

169,600 Hankyu 484,520 0.27 5,000 Heiwa 33,525 0.02

76,000 Keihan Electric Railway 191,484 0.11 55,000 Keihin Electric Express Railway 263,139 0.15 65,000 Keio 254,603 0.14 35,000 Keisei Electric Railway 119,023 0.07

170,000 Kintetsu 363,954 0.20



12,300 Ono Pharmaceuticals 339,960 0.19 8,700 Santen Pharmaceuticals 170,088 0.08

36,000 Shionogi 461,692 0.26 6,200 Suzuken 128,682 0.07

31,000 Taisho Pharmaceuticals 336,109 0.19 80,500 Takeda Pharmaceuticals 2,191,693 1.21 23,000 Tanabe Seiyaku 202,822 0.11

7,100 Tsumura 139,736 0.08

8,281,922 4.58

Real Estate – 2.18%; 2009 2.02% 12,100 Aeon Mall 137,271 0.08

139,000 Mitsubishi Estate 1,403,726 0.78 118,000 Mitsui Fudon 1,246,077 0.69

10,200 Nomura Real Estate 95,283 0.05 174 NTT Urban Development 79,654 0.04

1,110 Sumitomo Real Estate 29,877 0.02 63,000 Sumitomo Realty & Development 697,371 0.39 41,000 Tokyo Tatemono 101,043 0.06 52,000 Tokyu Land 121,708 0.07

3,912,010 2.18

Software & Computer Services – 1.13%; 2009 1.24% 6,700 Capcom 68,861 0.04 8,467 IT Holdings 59,452 0.03 3,400 Itochu Techno Science 64,014 0.04

23,000 Nomura Research Institute 320,303 0.18 1,900 NS Solutions 18,128 0.01

150 NTT Data 289,745 0.16 660 Obic 76,420 0.04

3,400 Oracle Japan 91,047 0.05 1,700 Otsuka 57,753 0.03 6,100 Square-Enix 75,754 0.04 3,500 Sumisho Computer Systems 30,599 0.02

14,000 Trend Micro 322,857 0.18 2,383 Yahoo Japan 561,032 0.31

2,035,965 1.13

Support Services – 4.19%; 2009 3.41% 158,000 Itochu 768,978 0.43 172,000 Marubeni 622,804 0.35 169,000 Mitsubishi Chemicals 2,543,163 1.40


127

Japan Equity Tracker Portfolio Turnover








89,000 Nagoya Railroad 162,970 0.08 40,000 Nishi-Nippon Railroad 96,375 0.05 73,569 Odakyu Electric Railway 371,224 0.21

5,000 Oriental Land 213,402 0.12 43,000 Sagami Railway 114,556 0.06

6,400 Sankyo 212,796 0.11 86,000 Tobu Railway 287,129 0.16

127,000 Tokyu 319,979 0.17 199 West Japan Railway 426,040 0.24

6,754,167 3.74

DERIVATIVES – (0.10)% ; 2009 (0.08)%


Futures – (0.10)%; 2009 (0.11)% 56 TSE TOPIX March 2010 (173,663) (0.10)


Total net assets £179,917,105 100.00


Note: Comparative figure show percentages for each category of holding at 31 January 2009.


Japan Equity Tracker Balance Sheetat 31 January 2010

31.1.2010 31.1.2009Notes £ £

Assets:Investment assets 176,340,941 120,971,853 – Debtors 7 1,418,001 316,221 – Cash and bank balances 8 3,699,727 2,447,085


Liabilities:Investment liabilities (173,663) (449,724) – Creditors 9 (1,235,012) (483,550) – Bank overdraft (132,889) –

Total other liabilities (1,367,901) (483,550) Total liabilities (1,541,564) (933,274)



31.1.2010 31.1.2009Notes £ £ £ £


during the year 2 6,865,712 (9,523,922) Revenue 3 2,500,718 2,668,642 Expenses 4 (337,066) (294,057) Finance costs: Interest 6 (7,130) (386)





31.1.2010 31.1.2009£ £ £ £




48,166,384 5,480,766 Stamp duty reserve tax (1) –Change in net assets attributable tounitholders from investment activities 6,865,712 (9,523,922) Retained distribution on accumulation units 2,083,125 1,979,688


Comparative figures have been restated for the presentation changes following adoption of the Statement of Recommended Practice (“the SORP”) for Authorised Funds issued by the Investment Management Association (“IMA”) in November 2008 (see Accounting PoliciesNote 1(a)).

Japan Equity Tracker Statement of Change in Net AssetsAttributable to Unitholders for the year ended 31 January 2010

Japan Equity Tracker Statement of Total Returnfor the year ended 31 January 2010



31.1.2010 31.1.2009£ £

Corporation tax 203,526 461,643 Overseas tax 174,952 184,339 Double taxation relief (93,014) (180,745)


Deferred tax (credit)/charge for the year [see note 5(c)] (18,617) 6,676



31.1.2010 31.1.2009£ £


Corporation tax at 20% (2009: 20%) 431,304 474,840 Effects of:Movement in revenue accruals non taxable 28,642 (13,197) Overseas tax 174,952 184,339 Non taxable overseas dividends (262,750) –Adjustment in respect of prior periods 6,330 –Double Tax Relief (93,014) (180,745)



£ £

Opening deferred tax balance 18,617 11,941 Deferred tax (credit)/charge for the year [see note 5(a)] (18,617) 6,676

Closing deferred tax balance £0 £18,617


Japan Equity Tracker Notes to Financial Statementsat 31 January 2010



£ £

The net capital gains/(losses) on investments comprise:Gains/(losses) on non-derivative securities 6,845,067 (9,022,103) Gains/(losses) on derivative contracts 220,721 (1,136,010) Gains/(losses) on forward currency contracts 119,313 (82,953) Other currency (losses)/gains (294,622) 731,778 Transaction costs (24,767) (14,634)


3. Revenue31.1.2010 31.1.2009

£ £

Overseas dividends 2,499,319 2,633,420 Interest from UK bank deposits 1,399 35,222

Total revenue £2,500,718 £2,668,642

4. Expenses31.1.2010 31.1.2009

£ £

Payable to the Manager or associates of the Manager:– Manager's service charge 295,910 236,063 – Registrar's fees 136 79 – VAT Refund on Registrars fees (10) –

296,036 236,142


16,801 13,849

Other expenses:– Safe custody fees 14,252 33,726 – Legal & professional fees 71 – – Audit fee 8,526 8,930 – Risk monitoring fee 1,380 1,410

24,229 44,066

Total expenses £337,066 £294,057


9. Creditors31.1.2010 31.1.2009

£ £

Purchases awaiting settlement 901,947 – Amounts payable for cancellation of units – 110,365 Currency purchases awaiting settlement 172,640 – Accrued Manager's service charge 61,065 41,198 Accrued Registrar's fee 13 20 Accrued Trustee's fee 3,370 1,230 Accrued Safe custody fees 12,941 7,658 Accrued Audit fee 8,716 8,930 Corporation tax payable 50,917 280,898 Deferred taxation – 18,617 Transaction costs 23,403 14,634

Total creditors £1,235,012 £483,550



The Fund’s property is invested with the aim of achieving the investment objective of long-termcapital growth, by tracking closely the performance of the FTSE Japan Index.


Risk Impact of risk


The Fund is accounted for in Sterling and holds financial assetsand financial liabilities denominated in Japanese yen.

To manage these risks, the Fund has entered into forwardcurrency transactions during the year for the purposes of efficientportfolio management. At 31 January 2010, the Fund has no openforeign currency contracts.

Japan Equity Tracker Notes to Financial Statements continued


31.1.2010 31.1.2009£ £

Interim 969,206 848,012 Final 1,113,919 1,131,676

2,083,125 1,979,688

Add: Amounts deducted on cancellation of units 146,767 159,016 Less: Amounts received on creation of units (340,217) (236,418)

Net distribution for the year 1,889,675 1,902,286 Finance costs: Interest 7,130 386



7. Debtors31.1.2010 31.1.2009

£ £

Amounts receivable for creation of units 1,111,218 183,035 Currency sales awaiting settlement 172,099 –Accrued revenue 134,684 133,186

Total debtors £1,418,001 £316,221


£ £

Amount held at futures clearing houses and brokers 100,240 380,429 Cash and bank balances 3,599,487 2,066,656






exposures31.1.2010 31.1.2010 31.1.2010

£ £ £

Japanese yen 3,699,726 175,572,115 179,271,841 UK sterling (132,889) 778,153 645,264

Total £3,566,837 £176,350,268 £179,917,105




exposures31.1.2009 31.1.2009 31.1.2009

£ £ £

Japanese yen 1,045,426 122,166,951 123,212,377 UK sterling 1,401,659 (1,812,151) (410,492)

Total £2,447,085 £120,354,800 £122,801,885

(c) Interest Rate Risk Profile of Financial Assets and LiabilitiesThe Interest Rate Risk Profile of Financial Assets and Liabilities at 31 January 2010 was as follows:



Japanese yen 3,699,726 – 176,647,725 180,347,451 UK sterling – – 1,111,218 1,111,218

Total £3,699,726 £0 £177,758,943 £181,458,669


Risk Impact of risk


To manage these risks, the Manager undertakes research tominimise the impact of such movements against the Fund’sinvestment objective.


To manage these risks, the Investment Manager undertakes in-depth research of investment opportunities congruent with theFund’s investment objective.

The Fund invests primarily in companies incorporated in Japan,which is typically considered to be an area with high levels ofliquidity. From time to time, however, market liquidity may beaffected by economic events.


The BlackRock Pricing Committee will also review any significantmarket events which affect the liquidity of assets.


The Manager maintains a list of approved counterparties. This list isregularly monitored and revised for changes based on the counter-party’s credit-worthiness, market reputation and expectations offuture financial performance. Transactions will only be openedwith financial intermediaries on the approved counterparties list.

These risks are monitored by the manager in pursuance of the investment objective and policy as set out in the Manager’s Report. Adherence to investment guidelines and to investment andborrowing powers set out in the Trust Deed, the Prospectus and in the Collective InvestmentScheme Sourcebook mitigates the risk of excessive exposure to any particular type of security or issuer. Further information on the investment portfolio is set out in the Investment Report and Portfolio Statement.




13. Related Party TransactionsBlackRock Fund Managers Limited, as Manager and Registrar of the Fund, together with The RoyalBank of Scotland plc as Trustee, are regarded as related parties to the Fund. BlackRock FundManagers Limited acts as either principal or agent for the Trustee in respect of all transactions ofunits of the Fund. The aggregate monies received through creation and paid through cancellation are disclosed in the Statement of Change in Net Assets Attributable to Unitholders. Any amounts due to or from BlackRock Fund Managers Limited at the year end are disclosed in Notes 7 and 9.

Management fees and registration fees paid to BlackRock Fund Managers Limited and fees paid tothe Trustee are shown in Note 4. The balances due at the year end in respect of these fees are shownin Note 9.




31.1.2010 31.1.2010 31.1.2009 31.1.2009£ £ £ £











£ £ £

Japanese yen – (1,075,610) (1,075,610) UK sterling (132,889) (333,065) (465,954)

Total £(132,889) £(1,408,675) £(1,541,564)




Japanese yen 1,045,426 – 126,291,372 127,336,798 UK sterling 1,401,659 – 3,885,577 5,287,236

Total £2,447,085 £0 £130,176,949 £132,624,034

Currency Floating Rate Financial TotalF inancial Liabilities not Liabilities Carrying Interest

£ £ £

Japanese yen – (4,124,421) (4,124,421) UK sterling – (5,697,728) (5,697,728)

Total £0 £(9,822,149) £(9,822,149)







North American Equity Tracker Investment Objective & Policy

The aim of the Fund is to seek to achieve capital growth for investors by tracking closely the performanceof the S&P 500 Index until 31 October 2005 and the FTSE World Americas Index from 1 November 2005 byinvesting in companies in the Index. Investment will be made directly into constituent companies and viaother transferable securities giving exposure to such companies. The Fund may also invest in permittedmoney market instruments, permitted deposits, and units in collective investment schemes. Derivativesand forward transactions may be used for hedging purposes and meeting the investment objectives of theFund. The scheme property of the Fund will in all cases be restricted to investment in property which iseligible as a permitted link in IPRU (INS), or such other equivalent rules as may replace them from timeto time.

The Fund is a sub-fund of BlackRock Collective Investment Funds , a UCITS scheme established underthe Financial Services Authority's Collective Investment Schemes Sourcebook "the Sourcebook". Prior to10 July 2009 the Collective Investment Funds were known as the Qualified Investor Schemes (1). The Fundwas authorised by the FSA on 21 June 2005 and subsequently launched on 15 July 2005. The Fund waspreviously known as Merrill Lynch North American Equity Tracker Fund. It adopted its present name witheffect from 28 April 2008.

Japan Equity Tracker Distribution Tablesfor the year ended 31 January 2010







† Equalisation applies only to units purchased during the distribution period (Group 2 units). It is the average amount of revenue included in the purchase price of all Group 2 units and is refunded to holders of these units as a return of capital. Being capital, it is not liable toincome tax but must be deducted from the cost of units for capital gains tax purposes.


North American Equity Tracker Investment Report

The Fund met its objective of tracking the benchmarkOver 12 months to 31 January 2010, the BlackRock North American Equity Tracker Fund met its objectiveof closely tracking the FTSE World Americas index, returning 19.6%*.



Investing in US companies to match the FTSE World Americas indexThe Fund seeks to achieve capital growth for investors by tracking closely the performance of the FTSE World Americas index. Investment will be made directly into constituent companies and via othertransferable securities giving exposure to such companies.



In the US, signs of improvement and increased activity still balanced by ongoing risks to the economy US stocks ended significantly higher over six months, having posted gains through the majority of theperiod. In line with global equities, the pace of the rally slowed towards the end of 2009, with US stocksrecording negative performance in January 2010.

After cutting the Federal Funds rate to a record low, between 0% and 0.25%, in December 2008, the FederalReserve (Fed) took no additional interest rate action for all of the reporting period. In the Fed’s statementfollowing its policy meeting on 16 December, the central bank indicated that although economic activityhad continued to show signs of improvement, these factors were balanced by ongoing risks to the economyand still-low levels of inflation.




31.12.2008 31.12.2007 31.12.2006 31.12.2005 31.12.2004to 31.12.2009 to 31.12.2008 to 31.12.2007 to 31.12.2006 to 31.12.2005*

North American +20.9% -17.3% +6.4% +1.8% –

Performance Table


to 31.1.2010 to 31.1.2010


The Benchmark returned:Total Return (with net income reinvested)FTSE World Americas (net)†* +23.1% +11.2%


† Source: BlackRock/Factset. Net of withholding tax. Prior to 10 July 2009 the Collective Investment Funds were known as the QualifiedInvestor Schemes. All fund figures quoted are based on bid to bid, dealing prices (the price at which units are sold). * S&P 500 Composite(net) index used prior to 01/11/2005. Performance is calculated net of fees.





North American Equity Tracker Performance Record

Net Asset Value


£ p

2010 560,422,135 586,592,633 104.72009 388,134,355 330,733,566 85.212008 369,401,406 379,183,352 102.6



2010† 0.79642009 1.76462008 1.51662007 1.39482006 1.3703



p p

2010† 112.5 104.82009 111.4 72.152008 110.5 73.412007 112.3 99.832006 104.7 92.302005* 102.1 90.06

† To 31 March.

† To 31 January* From 15 July



North American Equity Tracker Investment Report continued

Meanwhile, US employment data has improved, where, despite unemployment claims falling by less-than- expected in January 2010, the contrast with the start of 2009 is striking: during the first quarter of2009, employment losses averaged 691,000 per month; this figure declined to 69,000 per month in thefourth quarter of the year.

Real gross domestic product (GDP) increased at an annualized rate of 2.2% in the third quarter of 2009,according to the Bureau of Economic Analysis of the US Department of Commerce. This compares to adecline of 0.7% during the second quarter of 2009. The improvement primarily reflected upturns in personalconsumption expenditures, exports, private inventory investment and residential fixed investment, in additionto a smaller decrease in non-residential fixed investment, that were partially offset by an upturn in imports,a decline in state and local government spending, and a deceleration in federal government spending.



32,198 Shaw Communication Class 'B' Shares 375,084 0.06 17,080 Shoppers Drug Mart 425,650 0.07 11,900 SNC-Lavalin 340,329 0.06 43,800 Sun Life Financial 800,888 0.14

121,444 Suncor Energy 2,401,282 0.41 79,748 Talisman Energy 826,252 0.14 45,200 Teck Resources Class 'B' Shares 926,820 0.16

4,830 Telus 93,550 0.02 3,820 Telus Non-Voting Shares 71,639 0.01

32,402 Thomson 676,924 0.12 66,678 Toronto-Dominion 2,457,956 0.42 17,458 Transalta 226,993 0.04 53,087 TransCanada 1,062,424 0.18

4,050 Weston (George) 163,433 0.03 57,700 Yamana Gold 363,962 0.06

41,464,328 7.09

United States – 82.54%; 2009 88.41%

Aerospace & Defence – 1.96%; 2009 2.28%2,712 Alliant Techsystems 133,654 0.02

54,985 Boeing 2,077,379 0.35 27,656 General Dynamics 1,152,909 0.20

9,416 Goodrich 363,266 0.06 8,879 L-3 Communications 461,515 0.08

29,062 Lockheed Martin 1,351,354 0.23 23,630 Northrop Grumman 834,512 0.14

9,744 Precision Castparts 639,769 0.11 28,900 Raytheon 944,697 0.16 12,016 Rockwell Collins 398,859 0.07 20,385 Textron 248,452 0.04 70,247 United Technologies 2,956,038 0.50

11,562,404 1.96

Automobiles & Parts – 0.56%; 2009 0.29%6,880 Autoliv 183,807 0.03

242,493 Ford Motor 1,640,429 0.28 11,240 Gentex 134,468 0.02 12,452 Genuine Parts 292,805 0.05 17,663 Harley-Davidson 250,659 0.04 48,162 Johnson Controls 836,463 0.14

1 Wabco 16 –

3,338,647 0.56



North American Equity Tracker Portfolio Statementat 31 January 2010

NORTH AMERICA – 89.63%; 2009 94.55%

Canada – 7.09%; 2009 6.14%12,200 Agnico Eagle Mines 385,993 0.07 11,431 Agrium 402,502 0.07 42,766 Bank of Montreal 1,302,467 0.22 78,919 Bank of Nova Scotia 2,071,658 0.35 76,591 Barrick Gold 1,665,139 0.28 20,258 BCE 325,927 0.06

112,610 Bombardier 332,409 0.06 41,704 Brookfield Asset Management 526,368 0.09 29,058 Brookfield Properties 218,012 0.04 30,862 Cameco 522,380 0.09 29,787 Canadian Imperial Bank Of Commerce 1,114,788 0.19 36,569 Canadian National Railway 1,140,506 0.19 42,248 Canadian Natural Resources 1,686,307 0.29 13,189 Canadian Pacific Railways 388,548 0.07

6,069 Canadian Tire Class 'A' Shares 189,883 0.03 5,052 Canadian Utilities Class 'A' Shares 127,883 0.02

58,859 Cenovus Energy 851,825 0.15 18,792 CGI Class 'A' Shares 155,077 0.03 29,394 Enbridge 797,945 0.14 58,659 Encana 1,123,089 0.19

1,600 Fairfax Financial 339,567 0.06 13,583 Finning 137,787 0.02 56,876 Goldcorp 1,207,208 0.21 19,624 Great West Lifeco 296,877 0.05 20,126 Husky Energy 311,898 0.05

8,336 IGM financial 202,761 0.03 24,436 Imperial Oil 549,574 0.09 54,100 Kinross Gold 548,478 0.09

8,580 Loblaw 176,233 0.03 8,625 Magna International Class 'A' Shares 296,778 0.05

136,727 Manulife Financial 1,564,745 0.27 12,558 National Bank of Canada 415,633 0.07 40,766 Nexen 558,939 0.10 23,026 Potash Sask 1,428,168 0.24 20,003 Power Financial 351,230 0.06 31,891 Powercorp of Canada 523,547 0.09 44,157 Research in Motion 1,740,780 0.30 38,798 Rogers Communications Class 'B' Shares 758,054 0.13

109,524 Royal Bank of Canada 3,353,587 0.57 9,604 Saputo 160,592 0.03






Chemicals – 1.19%; 2009 1.62%15,669 Air Products & Chemicals 742,283 0.13

5,069 Ashland 127,832 0.02 8,722 Avery Dennison 176,955 0.03

85,772 Dow Chemical 1,450,052 0.25 67,587 Du Pont de Nemours 1,375,023 0.23

5,088 Eastman Chemical 179,496 0.03 15,998 Ecolab 437,888 0.07

6,212 International Flavours & Fragrances 154,176 0.03 13,899 Mosaic 464,138 0.08 12,576 PPG Industries 460,534 0.08 23,222 Praxair 1,090,089 0.19

9,486 Sigma-Aldrich 283,266 0.05

6,941,732 1.19

Construction & Materials – 0.49%; 2009 0.50%13,532 Fluor 382,720 0.07 11,373 Fortune Brands 294,758 0.05 10,100 Foster Wheeler 176,359 0.03

9,374 Jacobs Engineering 221,071 0.04 27,821 Masco 235,430 0.04 17,300 McDermott International 254,577 0.04 11,274 MDU Resources Group 154,574 0.03

9,800 Owens-Illinois 166,228 0.03 8,916 Sherwin-Williams 352,489 0.06 9,352 Vulcan Materials 257,612 0.04

15,064 Weyerhaeuser 375,002 0.06

2,870,820 0.49

Electricity – 2.30%; 2009 3.11%46,939 AES 369,384 0.06 13,000 Allegheny Energy 169,802 0.03

8,839 Alliant Energy 171,882 0.03 35,967 American Electric Power 777,070 0.13 21,314 Consolidated Edison 581,666 0.10 15,366 Constellation Energy 309,545 0.05 42,134 Dominion Resources (Virginia) 984,459 0.17 12,779 DTE Energy 335,265 0.06 24,713 Edison International 513,877 0.09 14,327 Entergy 681,748 0.12 49,647 Exelon 1,412,820 0.24 23,065 FirstEnergy 627,868 0.11

North American Equity Tracker Portfolio Statement continued

Banks – 5.52%; 2009 4.01%642,975 Bank of America 6,067,013 1.03

51,684 BB&T 898,922 0.15 1,533,160 Citigroup 3,157,406 0.54

4,191 City National 129,177 0.02 9,898 Comerica 213,168 0.04 6,386 Commerce Bancshares 157,697 0.03

15,077 First Horizon National 121,847 0.02 60,182 Fifth Third 466,839 0.08 39,916 Hudson City Bancorp 330,557 0.06 55,322 Huntington Bancshares 165,027 0.03

3,358 Itau Unibanco Multiplo ADR (each representing 1 Preference Share) 39,837 0.01

291,690 JPMorgan Chase & Co 7,082,912 1.21 66,888 KeyCorp 299,293 0.05

8,812 M & T Bank 405,570 0.07 40,448 Marshall & Ilsley 174,171 0.03 33,657 New York Community Bancorp 315,062 0.05 18,160 Northern Trust 572,657 0.10 26,789 People's United Financial 270,164 0.05 34,425 PNC Financial Services 1,189,536 0.20 51,078 Popular 68,215 0.01 90,041 Regions Financial 355,691 0.06 37,583 Suntrust 570,406 0.10

142,169 US Bancorp Delaware 2,224,274 0.38 11,392 Valley National 97,682 0.02

382,154 Wells Fargo 6,777,844 1.16 10,902 Zions 128,995 0.02

32,279,962 5.52

Beverages – 2.02%; 2009 2.29%7,338 Brown-Forman 234,602 0.04

173,317 Coca-Cola 5,866,646 1.00 27,728 Coca-Cola Enterprises 349,369 0.06 15,463 Constellation Brands 155,170 0.03 17,900 Dr Pepper Snapple 308,648 0.05 10,470 Molson Coors Brewing Company 274,165 0.05 10,627 Pepsi Bottling 246,708 0.04

5,515 PepsiAmericas 99,982 0.02 115,779 PepsiCo 4,305,586 0.73

11,840,876 2.02






131,414 Qwest 345,265 0.06 213,583 Verizon Communications 3,917,377 0.67

25,931 Virgin Media 229,631 0.04

12,427,372 2.12

Food & Drug Retailers – 1.21%; 2009 1.48%22,530 AmerisourceBergen 383,139 0.07 27,694 Cardinal Health 571,025 0.10

105,789 CVS Caremark 2,137,038 0.36 49,499 Kroger 661,984 0.11

9,444 Omnicare 147,341 0.03 30,899 Safeway 432,902 0.07 17,189 Supervalue 157,580 0.03 44,226 Sysco 771,692 0.13 74,093 Walgreen 1,664,596 0.28 10,816 Whole Foods Market 183,732 0.03

7,111,029 1.21

Food Producers – 1.77%; 2009 1.73%48,431 Archer Daniels Midland 904,908 0.15 10,553 Bunge 386,715 0.07 19,944 Campbell Soup 411,725 0.07 33,610 ConAgra Foods 476,337 0.08 13,879 Dean Foods 152,527 0.03 24,677 General Mills 1,098,176 0.19 23,881 Heinz (H J) 650,081 0.11 13,012 Hershey Foods 295,823 0.05

7,984 Hormel Foods 192,525 0.03 21,558 Kellogg 732,143 0.12

107,441 Kraft Foods Class A 1,854,604 0.32 9,127 McCormick & Co 206,531 0.04

41,301 Monsanto 1,954,993 0.33 53,035 Sara Lee 401,138 0.07 11,405 Smithfield Foods 107,118 0.02

7,400 Smucker (JM) 277,131 0.05 24,010 Tyson Foods 206,926 0.04

1,156 WeightWatchers International 20,820 –

10,330,221 1.77

Forestry & Paper – 0.08%; 2009 0.05%32,814 International Paper 468,947 0.08




30,837 FPL Group 938,158 0.16 11,500 Mirant 100,833 0.02 13,684 Northeast Utilities 215,883 0.04 18,300 NRG Energy 274,888 0.05

8,488 NSTAR 181,636 0.03 14,911 Pepco 152,795 0.03 28,067 PG&E 739,509 0.13

7,838 Pinnacle West Capital 175,210 0.03 25,569 PPL 470,244 0.08 21,199 Progress Energy 515,555 0.09 38,448 Public Service Enterprise 733,257 0.13 27,645 Reliant Energy 85,399 0.01 59,905 Southern 1,196,306 0.20 16,851 Teco Energy 163,736 0.03 34,692 Xcel Energy 449,888 0.08

13,328,683 2.30

Electronic & Electrical Equipment – 0.85%; 2009 0.84%26,220 Agilent 458,490 0.08 13,219 Amphenol 328,660 0.06

9,522 Arrow Electronics 156,105 0.03 12,046 Avnet 198,461 0.03 24,213 Danaher 1,077,829 0.18 56,722 Emerson Electric 1,469,377 0.25

5,476 Energizer 189,664 0.03 61,303 Flextronics International 242,549 0.04 14,133 Jabil Circuit 127,536 0.02

5,672 Molex Class A 62,405 0.01 5,598 Molex 70,429 0.01 3,901 SPX 132,533 0.02

33,582 Tyco Electronics 520,999 0.09

5,035,037 0.85

Financial Services – 0.31%; 2009 0.25%35,400 Visa 1,808,882 0.31

Fixed Line Telecomunications – 2.12%; 2009 2.87%444,706 AT&T 7,035,258 1.20

22,372 CenturyTel 474,414 0.08 25,159 Frontier Communications 119,326 0.02 13,954 Leucadia National 194,454 0.03

129,640 Level 3 Communications 111,647 0.02




General Industrials – 2.53%; 2009 2.66%53,073 3M 2,661,930 0.45

5,854 Ball 185,550 0.03 7,953 Bemis 139,019 0.02

12,502 Eaton 477,719 0.08 787,815 General Electric 7,905,682 1.35

57,304 Honeywell 1,380,388 0.24 13,874 ITT 417,848 0.07 13,329 MeadWestvaco 200,135 0.03 10,705 Pactiv 150,648 0.03 10,788 Rockwell Automation 324,771 0.06 12,379 Sealed Air 153,115 0.03 37,239 Tyco International 822,679 0.14

14,819,484 2.53

General Retailers – 4.40%; 2009 4.60%6,422 Abercrombie & Fitch 126,404 0.02

24,926 Amazon 1,948,316 0.33 16,652 American Eagle Outfitter 164,920 0.03 11,648 Apollo Class 'A' Shares 440,435 0.08 10,390 AutoNation 116,648 0.02

2,848 Autozone 275,433 0.05 19,840 Bed Bath & Beyond 479,037 0.08 31,571 Best Buy 721,696 0.12 25,405 Block (H&R) 341,027 0.06 32,462 Costco Wholesale 1,162,830 0.20

5,801 Dollar Tree 179,272 0.03 97,549 Ebay 1,400,775 0.24 10,671 Family Dollar Stores 205,442 0.04 12,675 Foot Locker 89,225 0.02 11,800 Gamestop 145,364 0.02 39,747 Gap 472,777 0.08

126,683 Home Depot 2,213,632 0.38 23,031 Kohl's 723,528 0.12 21,432 Limited Brands 254,124 0.04

109,820 Lowe's Companies 1,481,720 0.25 31,940 Macy's 317,526 0.05 14,987 Nordstrom 322,860 0.06 17,963 Penny (JC) 278,234 0.05

6,978 Petsmart 112,134 0.02 9,906 Radioshack 120,610 0.02 9,641 Ross Stores 276,463 0.05




Gas, Water & Multiutilities – 0.69%; 2009 0.97%16,595 Ameren 264,294 0.05 30,078 CenterPoint Energy 261,474 0.04 97,730 Duke Energy 1,007,551 0.17

8,818 EQT 241,802 0.04 21,554 Nisource 191,678 0.03 13,042 Questar 337,282 0.06

9,428 SCANA 209,518 0.04 18,730 Sempra Energy 592,618 0.10 46,954 Spectra Energy 622,674 0.11

9,120 Wisconsin Energy 278,369 0.05

4,007,260 0.69

General Financial – 3.22%; 2009 2.52%89,031 American Express 2,091,873 0.36 19,275 Ameriprise Financial 459,983 0.08 90,172 Bank of New York Mellon 1,635,296 0.28

1,600 BlackRock 213,500 0.04 33,972 Capital One 781,246 0.13

5,025 CME 898,630 0.15 41,200 Discovery Financial Services 351,475 0.06

9,958 Equifax 198,800 0.03 18,100 Federal Home Loan Mortgage 12,990 – 44,900 Federal National Mortgage Association 26,900 –

6,203 Federated Investors 98,132 0.02 13,222 Franklin Resources 817,133 0.14 38,272 Goldman Sachs 3,551,815 0.61

5,500 Intercontinental Exchange 327,687 0.06 29,561 Invesco 356,045 0.06 14,335 Janus Capital 109,230 0.02 11,937 Legg Mason 191,972 0.03

8,285 MasterCard 1,290,731 0.22 16,049 Moodys 276,230 0.05

101,295 Morgan Stanley 1,691,621 0.29 18,190 NYSE Euronext 265,290 0.05 18,315 Price (T. Rowe) 566,915 0.10 87,302 Schwab (Charles) 995,931 0.17 11,408 SEI Investments 126,083 0.02 35,864 SLM 235,676 0.04 37,114 State Street 993,165 0.17 22,330 TD Ameritrade 247,492 0.04

18,811,841 3.22




8,831 Varian Medical Systems 277,154 0.05 7,341 Waters 261,040 0.04 2,949 WebMD Health 71,572 0.01

26,986 Wellpoint 1,072,939 0.18 15,029 Zimmer 527,572 0.09

22,192,133 3.80

Household Goods – 1.81%; 2009 2.16%4,030 Black & Decker 162,618 0.03

10,684 Clorox 394,249 0.07 24,276 DR Horton 178,616 0.03 12,245 Leggett & Platt 139,537 0.02 11,976 Lennar Class A 114,797 0.02

5,460 Mohawk 141,100 0.02 17,559 Newell Rubbermaid 148,699 0.03

460 NVR 196,396 0.03 219,353 Procter & Gamble 8,418,753 1.44

29,419 Pulte Homes 193,140 0.03 6,182 Stanley Works 197,566 0.03 9,806 Toll Brothers 113,028 0.02 5,621 Whirlpool 263,160 0.04

10,661,659 1.81

Industrial Engineering – 1.08%; 2009 0.93%46,631 Caterpillar 1,519,931 0.26 15,212 Cummins 428,431 0.07 31,747 Deere 989,617 0.17 14,291 Dover Corp 382,158 0.07 37,890 Illinois Tool Works 1,030,010 0.18 22,633 Ingersoll-Rand 458,479 0.08 27,281 Paccar 612,733 0.10

9,220 Pall 198,336 0.03 10,989 Parker-Hannifin 383,147 0.07

7,875 Pentair 149,843 0.03 7,500 Terex 91,457 0.02

6,244,142 1.08

Industrial Metals – 0.58%; 2009 0.51%73,505 Alcoa 583,948 0.10

7,500 Allegheny Technologies 191,198 0.03 2,120 Cia Vale Rio doce sponsored ADR (each representing

1 ordinary share) 34,054 0.01




4,623 Sears 269,088 0.05 54,517 Staples 797,818 0.14 56,640 Target 1,812,240 0.31

9,501 Tiffany 240,608 0.04 31,999 TJX 758,838 0.13 10,038 Urban Outfitters 197,766 0.03

218,706 Wal Mart Stores 7,289,745 1.24

25,736,535 4.40

Health Care Equipment & Services – 3.80%; 2009 4.23%33,276 Aetna 622,368 0.11

6,548 Alcon 636,289 0.11 7,502 Bard (C.R.) 388,068 0.07

45,643 Baxter International 1,638,978 0.28 5,374 Beckman Coulter 219,233 0.04

18,223 Becton Dickinson 856,449 0.15 115,017 Boston Scientific 619,444 0.11

13,697 CareFusion 220,020 0.04 20,821 Cigna 438,795 0.07

7,414 Community Health Systems 150,880 0.03 11,571 Coventry Healthcare 165,145 0.03 39,476 Covidien 1,245,081 0.21

8,018 DaVita 299,024 0.05 11,663 Dentsply International 243,974 0.04 20,782 Express Scripts 1,087,605 0.19

7,159 Henry Schein 241,433 0.04 13,119 Humana 397,402 0.07

2,897 Intuitive Surgical 593,104 0.10 4,317 Kinetic Concepts 111,077 0.02 8,263 Laboratory Corp of America 366,637 0.06 5,669 Lincare Holdings 130,262 0.02

20,320 McKesson 745,895 0.13 35,760 Medco Health Solutions 1,371,797 0.23 83,291 Medtronic 2,227,296 0.38

4,274 Millipore 183,934 0.03 9,583 Patterson 170,741 0.03

12,900 Quest Diagnostics 448,167 0.08 25,597 St Jude Medical 602,705 0.10 22,774 Stryker 737,625 0.13 30,778 Thermo Fisher Science 886,231 0.15

7,382 Universal Health 134,151 0.02 87,503 United Health 1,802,046 0.31




Media – 2.47%; 2009 2.38%18,821 Cablevision Systems 301,155 0.05 43,582 CBS Class 'B' Shares 351,398 0.06 59,310 Comcast 560,380 0.10

152,325 Comcast Class 'A' Shares 1,504,808 0.26 73,453 Directv 1,391,225 0.24

8,864 Discovery Communic Class C 145,263 0.02 9,464 Discovery Communic Class A 175,176 0.03

13,556 Dish Network 154,476 0.03 4,204 Dun & Bradstreet 207,183 0.04

18,222 Gannett 183,539 0.03 36,153 Interpublic 145,524 0.02

6,199 Lamar Advertising 110,641 0.02 10,942 Liberty Global Class A 173,376 0.03 10,467 Liberty Global Class C 163,694 0.03 42,274 Liberty Media Corporation 273,578 0.05

3,538 Liberty Media -Starz 103,486 0.02 22,217 McGraw-Hill Companies 491,092 0.08 45,818 News Corp Class 'B' 419,751 0.07

135,377 News Corp Class 'A' 1,065,342 0.18 23,549 Omnicom 518,772 0.09

7,500 Scripps Networks Interactive 199,856 0.03 309,617 Sirius XM Radio 162,305 0.03

87,683 Time Warner 1,502,058 0.26 26,615 Time Warner Cable 722,844 0.12 41,266 Viacom New Class 'B' (Non-Voting) 750,431 0.13

138,941 Walt Disney 2,561,356 0.44 200 Washington Post Class 'B' Shares 54,237 0.01

14,392,946 2.47

Mining – 0.31%; 2009 0.35%12,676 Consol Energy 368,319 0.06 35,974 Newmont Mining 962,210 0.16 20,180 Peabody Energy 529,939 0.09

1,860,468 0.31

Mobile Telecommunications – 0.21%; 2009 0.21%18,000 MetroPCS Communications 63,018 0.01

8,000 Millicom International Cellular (US Line) 356,266 0.06 13,083 NII 267,310 0.05

218,087 Sprint Nextel 443,687 0.08 4,149 Telephone & Data Systems 81,691 0.01

1,211,972 0.21




32,308 Freeport McMoran C&G Class 'B' Shares 1,343,008 0.23 23,610 Nucor 600,711 0.10 20,157 Southern Copper 334,986 0.06 10,815 United States Steel 299,329 0.05

3,387,234 0.58

Industrial Transportation – 1.45%; 2009 1.52%24,941 Burlington Northern Sante Fe 1,552,275 0.26 12,848 CH Robinson Worldwide 453,978 0.08 29,489 CSX 788,569 0.13 14,485 Expeditors Intern of Washington 308,068 0.05 23,390 Fedex 1,143,226 0.19

7,647 JB Hunt Transport Services 146,316 0.02 27,608 Norfolk Southern 810,804 0.14

4,392 Ryder System 99,768 0.02 37,758 Union Pacific 1,425,350 0.24 51,862 United Parcel Service Class 'B' Shares 1,867,796 0.32

8,596,150 1.45

Leisure Goods – 0.25%; 2009 0.28%50,400 Activision Blizzard 319,246 0.05 24,828 Electronic Arts 252,247 0.04 11,889 Garmin 239,798 0.04

5,488 Harman International 121,651 0.02 10,881 Hasbro 207,312 0.04 27,581 Mattel 339,082 0.06

1,479,336 0.25

Life Insurance – 0.88%; 2009 0.73%34,988 Aflac 1,057,020 0.18

9,133 Assurant 179,138 0.03 37,199 Genworth Financial Class 'A' Shares 321,057 0.05 22,870 Lincoln National 350,529 0.06 61,395 Metlife 1,351,349 0.23 24,096 Principal Financial 346,162 0.06

6,973 Protective Life 73,281 0.01 34,624 Prudential Financial 1,079,515 0.18

5,572 Torchmark 156,130 0.03 25,268 UnumProvident 308,596 0.05

5,222,777 0.88




24,707 Hess 890,587 0.15 53,180 Marathon Oil 988,662 0.17 14,462 Murphy Oil 460,286 0.08

9,831 Newfield Exploration 300,255 0.05 12,058 Noble Energy 556,396 0.09 60,713 Occidental Petroleum 2,964,419 0.51 14,158 Petrol Brasileiro Petrobas Sponsored ADS

(each representing 2 ordinary shares) 357,042 0.06 1,102 Petrol Brasileiro Petrobas Sponsored ADR

(each representing 2 preference shares) 24,772 – 8,658 Pioneer Natural Resource 237,576 0.04

11,086 Plains Exploration & Production 230,243 0.04 11,800 Range Resources 338,668 0.06 25,900 Southwestern Energy 693,080 0.12

9,159 Sunoco 143,409 0.02 12,033 Ultra Petroleum 344,905 0.06 42,574 Valero Energy 489,399 0.08 41,923 XTO Energy 1,165,545 0.20

40,764,483 6.95

Oil Equipment, Services & Distribution – 2.05%; 2009 1.63%21,971 Baker Hughes 620,848 0.11 21,992 BJ Services 283,684 0.05 18,278 Cameron International 428,890 0.07

5,262 Diamond Offshore Drilling 300,240 0.05 52,593 El Paso 333,137 0.06 67,195 Halliburton 1,224,891 0.21 21,635 Nabors Industries 300,951 0.05 31,479 National Oilwell 803,477 0.14 20,564 Noble 517,052 0.09 12,569 Patterson-UTI Energy 120,482 0.02 23,700 Petrohawk Energy 329,676 0.06 11,572 Pride International 213,761 0.04

8,852 Rowan 118,660 0.02 88,853 Schlumberger 3,515,527 0.60

911 Seahawk Drilling 11,888 – 18,796 Smith International 355,416 0.06 24,900 Transocean 1,316,170 0.22 57,784 Weatherford 564,714 0.10 44,158 Williams Companies 574,021 0.10

11,933,485 2.05




Non-life Insurance – 2.68%; 2009 2.89%26,380 ACE 810,299 0.14 40,425 Allstate 754,311 0.13 10,250 American International 154,799 0.03 21,039 Aon 510,745 0.09 10,262 Axis Capital 184,439 0.03 12,880 Berkley (WR) 195,563 0.03 42,150 Berkshire Hathaway Convertible Class 'A' Shares 2,010,437 0.34

61 Berkshire Hathaway Convertible Class 'B' Shares 4,362,581 0.74 11,200 Brown & Brown 123,015 0.02 25,823 Chubb 805,760 0.14 12,799 Cincinnati Financial 210,787 0.04

1,000 Erie Indemnity Company Class A 24,314 –4,856 Everest Re 259,831 0.04 7,359 First American 135,800 0.02 8,174 Gallagher AJ 115,030 0.02

28,996 Hartford Financial Services 433,746 0.07 32,607 Loews 727,268 0.12

785 Markel 159,214 0.03 39,677 Marsh & McLennan 533,847 0.09

1,592 Mercury General 37,972 0.01 19,465 Old Republic International 128,641 0.02

6,368 PartnerRe 296,304 0.05 51,382 Progressive 531,007 0.09

5,040 Renaissance 170,411 0.03 5,392 Transatlantic 166,935 0.03

41,127 Travellers 1,300,233 0.22 497 White Mountains 99,251 0.02

13,243 Willis 216,529 0.04 26,037 XL Capital 272,492 0.05

15,731,561 2.68

Oil & Gas Producers – 6.95%; 2009 10.07%36,851 Anadarko Petroleum 1,465,853 0.25 24,929 Apache 1,535,816 0.26 48,199 Chesapeake Energy 745,364 0.13

150,003 ChevronTexaco 6,740,961 1.15 111,778 ConocoPhillips 3,348,318 0.57

4,000 Continental Resources 94,558 0.02 33,396 Devon Energy 1,394,279 0.24 18,928 EOG Resources 1,067,003 0.18

353,772 Exxon Mobil 14,187,087 2.42




20,942 Equity Residential 418,605 0.07 10,009 Forest City Class 'A' Shares 70,395 0.01 22,291 HCP 394,099 0.07

9,099 Hospitality Properties Trust 125,378 0.02 43,863 Host Hotels & Resorts 289,883 0.05 30,673 Kimco 241,188 0.04

8,411 Liberty Property Trust 159,570 0.03 7,773 Macerich 149,406 0.03

12,420 Plum Creek 280,272 0.05 33,650 Prologis 264,387 0.05

9,678 Public Storage 477,800 0.08 5,495 Regency Centers 114,845 0.02

21,446 Simon Property 963,089 0.15 7,331 St Joe 118,950 0.02 9,900 Ventas 260,598 0.04

13,652 Vornado Realty Trust 551,056 0.09 9,580 Weingarten Realty Investors 111,559 0.02

6,488,567 1.09

Software & Computer Services – 6.43%; 2009 6.12%39,547 Adobe Systems 797,159 0.14 13,209 Akamai Technologies 203,444 0.03 16,158 Amdocs 287,988 0.05 17,537 Autodesk 260,253 0.04 14,041 BMC Software 338,495 0.06 29,874 CA 410,898 0.07 16,497 Check Point Software Technologies 328,725 0.06 13,839 Citrix Systems 358,843 0.06 22,273 Cognizant Technology 606,864 0.10 11,413 Computer Sciences 365,310 0.06 19,242 Compuware 91,143 0.02

4,045 DST Systems 114,428 0.02 17,641 Google 5,828,444 0.99 10,848 IAC Interactive 135,871 0.02 98,926 IBM 7,550,331 1.27 24,416 Intuit 451,172 0.08 12,011 McAfee 282,435 0.05

668,888 Microsoft 11,754,797 2.00 376,219 Oracle 5,414,135 0.92

61,138 Symantec 645,566 0.11 11,295 Synopsys 149,928 0.03




Personal Goods – 0.98%; 2009 1.04%7,755 Alberto-Culver 137,397 0.02

32,230 Avon 605,821 0.10 23,978 Coach 521,339 0.09 37,522 Colgate Palmolive 1,871,885 0.32

9,066 Estee Lauder Companies Class 'A' Shares 297,033 0.05 31,211 Kimberly Clark 1,156,389 0.20 20,303 Nike Class 'B' Common Stock 807,609 0.14

8,407 VF 377,643 0.06

5,775,116 0.98

Pharmaceuticals & Biotechnology – 6.62%; 2009 9.13%115,538 Abbott Laboratories 3,815,696 0.65

22,044 Allergan 790,194 0.13 76,578 Amgen 2,794,734 0.48 21,784 Biogen Idec 730,438 0.12

128,510 Bristol-Myerrs Squibb 1,953,634 0.33 34,502 Celgene 1,222,556 0.21

5,755 Cephalon 229,065 0.04 20,482 Forest Labs 378,349 0.06 20,034 Genzyme 678,385 0.12 67,585 Gilead Sciences 2,035,901 0.35 12,132 Hospira 383,403 0.07

207,638 Johnson & Johnson 8,140,177 1.39 16,742 King Pharmaceuticals 125,481 0.02 13,581 Life Tech 421,143 0.07 86,643 Lily (Eli) 1,901,669 0.32 23,140 Mylan Laboratories 263,256 0.04

603,351 Pfizer 7,026,042 1.20 228,217 Schering-Plough 5,434,823 0.93

15,100 Vertex Pharmaceuticals 361,951 0.06 8,158 Watson Pharmaceuticals 195,346 0.03

38,882,243 6.62

Real Estate – 1.09%; 2009 1.01%11,651 AMB Properties 174,358 0.03 43,700 Annaly Capital Management 473,708 0.08

1 Apartment Investment & Management 10 – 6,175 Avalonbay Communication 295,224 0.05

10,559 Boston Properties 427,197 0.07 17,992 Duke Weeks Realty 126,990 0.02




21,029 Crown Castle International 484,780 0.08 147,919 Dell Computers 1,189,888 0.20

5,227 Diebold 86,671 0.01 153,193 EMC 1,591,777 0.27

4,800 First Solar 339,421 0.06 9,000 FMC Technologies 298,633 0.05

10,229 Harris 273,599 0.05 178,696 Hewlett-Packard 5,244,679 0.89 416,502 Intel 5,037,324 0.86

39,858 Juniper Networks 616,874 0.11 13,108 KLA- Tencor 230,682 0.04

8,634 Lam Research 177,702 0.03 16,976 Linear Technology 276,082 0.05 50,387 LSI Logic 156,595 0.03 48,615 Marvell Technology 529,110 0.09 17,394 MEMC 136,447 0.02 14,055 Microchip Technology 226,385 0.04 64,141 Micron Technology 348,645 0.06

172,446 Motorola 661,847 0.11 18,423 National Semiconductor 152,452 0.03 12,969 NCR 96,879 0.02 25,412 Network Appliance 461,330 0.08

7,829 Novellus Systems 102,113 0.02 41,991 NVIDIA 403,034 0.07 16,200 Pitney Bowes 211,296 0.04

124,495 Qualcomm 3,043,228 0.52 6,900 Salesforce.com 273,434 0.05

17,289 Sandisk 274,160 0.05 39,172 Seagate Technology 408,490 0.07 94,890 Texas Instruments 1,332,392 0.23 17,000 Western Digital 402,615 0.07 66,939 Xerox 364,271 0.06 21,178 Xilinx 311,511 0.05

44,638,834 7.60

Tobacco – 1.19%; 2009 1.43%154,588 Altria 1,913,055 0.33

12,200 Lorillard 576,348 0.10 142,588 Philip Morris International 4,045,214 0.67

16,502 Reynolds American 547,870 0.09

7,082,487 1.19




12,978 Teradata 226,532 0.04 14,804 Verisign 211,657 0.04

105,491 Yahoo 987,497 0.17

37,801,915 6.43

Support Services – 1.32%; 2009 1.50%49,123 Accenture 1,256,278 0.19

5,489 Affiliated Computer Services Class 'A' Shares 210,736 0.04 3,369 Alliance Data Systems 125,013 0.02

35,672 Auto Data Process 907,606 0.15 11,245 Broadridge Financial Solutions 152,352 0.03

9,031 Cintas 141,462 0.02 11,476 Cooper Industries 307,025 0.05 16,049 Donnelley (R.R) & Son 198,409 0.03 11,510 Fastenal 297,878 0.05 25,167 Fidelity National Information Services 369,715 0.06 11,897 Fiserv 334,399 0.06

4,793 Grainger (WW) 296,960 0.05 14,578 IMS 196,508 0.03 15,671 Iron Mountain 223,466 0.04

7,501 Lender Processing 181,393 0.03 6,206 Manpower 200,580 0.03

27,770 Paychex 502,231 0.09 28,126 Republic Services 469,703 0.08 11,812 Robert Half International 198,439 0.03 15,528 Total System Services 138,574 0.02 34,341 Waste Management 686,649 0.12 49,076 Western Union 567,816 0.10

7,963,192 1.32

Technology Hardware & Equipment – 7.60%; 2009 6.81%51,154 Advanced Micro Development 237,510 0.04 22,555 Altera 300,095 0.05 30,230 American Tower 'A' shares 800,838 0.14 20,304 Analog Devices 341,610 0.06

8,780 AOL 131,338 0.02 67,294 Apple Computer 8,061,925 1.37

100,443 Applied Materials 763,477 0.13 33,005 Broadcom 550,152 0.09

6,600 Cerner 311,506 0.05 433,658 Cisco Systems 6,081,063 1.02 116,673 Corning 1,314,974 0.22




26,200 Cia Concessoes Rodoviarias 351,407 0.06 3,105 Cia de Bebidas das Americas 155,317 0.03

10,500 Cia Paranaense de Energia Preference 'B' Shares 134,948 0.02 7,400 Cia Souza Cruz 149,323 0.03 2,921 Cia Transmissao Energia Elet Paulista Preference Shares 46,221 0.01

125,000 Cia Vale Rio doce 2,038,799 0.35 164,524 Cia Vale Rio doce Preference 'A' Shares 2,312,015 0.39

3,100 Comgas Preference 'A' Shares 36,699 0.01 8,300 Cosan Sa Industria 58,956 0.01 4,600 CPFL Energia 55,653 0.01

25,200 Cyrela Brazil 181,855 0.03 21,200 Electrobras 283,072 0.05

8,200 Electropaulo Metropolitana Electricid Preference 'B' Shares 98,169 0.02 58,800 Embraer Empresa Brasileira de Aeronautica 195,889 0.03

5,200 Energias do Brasil 61,300 0.01 11,600 Fertilizantes Fosfatados 72,299 0.01

6,200 Gerdau 40,317 0.01 55,200 Gerdau Preference Shares 466,458 0.08 11,200 Hypermarcas 81,086 0.01

208,529 Itau SA Investimentos Preference Shares 780,932 0.13 138,200 JBS 430,449 0.07

7,500 Klabin 12,205 – 8,800 Light 73,160 0.01

28,800 Lojas Americanas Preference Shares 127,063 0.02 21,900 Metalurgica Gerdau Preference Shares 228,881 0.04 33,800 Natura Cosmeticos 382,556 0.07 18,488 Net servicos de communicacao Preference Shares 134,404 0.02 50,000 OGX Petroleo e Gas Participacoes 280,121 0.05 11,431 Pao de Acucar Preference 'A' Shares 241,108 0.04 34,368 Perdigao 517,463 0.09

284,700 Petrol Brasileiro Petrobas Sponsored Preference Shares 3,244,138 0.53 169,600 Petrol Brasileiros Sa Petrobras 2,161,640 0.37

10,200 Porto Seguro 64,492 0.01 39,900 Redecard 350,607 0.06

5,900 Sabesp 61,682 0.01 44,400 Siderurgica Nacional 814,353 0.14 17,000 Suzano Papel e Celulose Preference 'A' Shares 115,140 0.02

8,200 Tam Preference 'A' Shares 94,259 0.02 5,300 Tele Norte Leste Participacoes 70,503 0.01

20,836 Tele Norte Leste Preference Shares 233,464 0.04 3,300 Tele Norte Leste Preference 'A' Shares 60,570 0.01 1,400 Tele Sao Paulo Preference Shares 19,412 –




Travel & Leisure – 1.57%; 2009 1.41%35,258 Carnival 733,148 0.12 10,703 Darden Restaurants 246,602 0.04 60,600 Delta Airlines 461,383 0.08 19,314 Expedia 258,058 0.04 19,751 International Game Technology 225,687 0.04 26,109 Las Vegas Sands 252,226 0.04 24,847 Marriott International 406,260 0.07 80,872 McDonald's 3,148,778 0.52 24,935 MGM Mirage 171,794 0.03

3,300 Priceline.com 402,306 0.07 12,649 Royal Caribbean 205,949 0.04 56,465 Southwest Airlines 398,892 0.07 55,965 Starbucks 761,032 0.13 14,208 Starwood Hotels & Resorts Worldwide 295,438 0.05 37,453 Wendys Arbys 107,750 0.02 14,008 Wyndham Worldwide 183,492 0.03

7,039 Wynn Resorts 271,870 0.05 35,343 Yum! Brands 754,105 0.13

9,284,770 1.57

SOUTH AMERICA – 5.72%; 2009 3.76%

Brazil – 4.43%; 2009 2.69%2,800 AES Tiete Preference Shares 17,722 –

54,300 All America Latina (representing 4 Preference Shares & 1 Ordinary Share) 273,428 0.05

4,600 B2W 58,292 0.01 132,000 Banco Bradesco 1,379,118 0.24

60,600 Banco do Brasil 567,866 0.10 174,580 Banco Itau Preference Shares 2,103,436 0.36

37,400 Banco Santander 280,871 0.05 15,800 Bebidas das Americas 911,528 0.16

159,758 BM&F Bovespa 678,200 0.12 18,200 Bradespar 235,610 0.04 16,250 Brasil Telecom SA Preference Shares 70,935 0.01

1,616 Brasil Telecom 10,924 – 20,500 Braskem S A Preference 'A' Shares 90,649 0.02

500 Cemig Energetica Minas Gerias-Cemig 4,002 – 27,948 Cemig Energy Preference Shares 292,183 0.05 12,875 Cesp Enegy Preference 'B' Shares 100,855 0.02 43,500 Cia Bras De Meios 217,594 0.04




DERIVATIVES – (0.17)%; 2009 0.17%


Futures – (0.17)%; 2009 (0.03)%14 Standard & Poors TSX 60 March 2010 Futures (56,410) (0.01)

153 Standard & Poors 500 IDX March 2010 Futures (967,214) (0.16)

(1,023,624) (0.17)




Note: Comparative figures show percentages for each category of holding at 31 January 2009.




120,500 Tim Participacoes Preference Shares 198,911 0.03 18,800 Tim Participacoes 43,886 0.01 20,900 Tractebel energia 140,997 0.02

6,900 Ultrapar Participacoes 190,753 0.03 20,025 Usiminas Siderúrgicas de Minas Gerais Preference

'A' Shares 331,224 0.06 8,100 Usinas Sid Minas Gerais Usiminas 134,086 0.02 8,574 Vivo participacoes Preference Shares 152,941 0.03

24,700 WEG 148,676 0.03

25,953,072 4.43

Mexico – 1.29%; 2009 1.07%23,623 Alfa Series 'A' Shares 95,834 0.02

1,581,525 America Movil 2,173,885 0.35 76,254 Carso Global Telecom Series 'A' Shares 211,244 0.04

1,900 Carso Infraestructura y Construccion 749 – 763,837 Cemex (Representing 2 'A' and 1 'B' Shares) 449,289 0.08 159,039 Financiero Banorte 328,217 0.06 164,429 Fomento Economico Mexicano 435,267 0.07

35,650 Grupo Aeroportuari Series 'B' Shares 70,504 0.01 15,771 Grupo Bimbo 62,425 0.01 34,400 Grupo Carso 66,609 0.01

5,800 Grupo Elektra 182,712 0.03 59,234 Grupo Financiera Imbursa 113,926 0.02 42,482 Impulsora del Desarollo 31,873 0.01 10,704 Industrias penoles 124,558 0.02 35,627 Kimberly Clark Mexico 100,067 0.02 65,018 Mexichem 87,588 0.01

640,640 Mexico Series 'B' Shares 816,504 0.14 43,764 Modelo Series 'C' Shares 136,813 0.02 37,149 Organizacion Soriana 54,261 0.01

759,281 Telefonos De Mexico 386,355 0.07 193,740 Televisa (Representing 25 'A', 22 'B',35 'D' and

35 'L' Shares) 476,704 0.08 737,881 Telmex Internacional 409,890 0.07

42,378 Urbi Desarrollo 56,579 0.01 264,796 Wal-Mart de Mexico Series 'V' 736,102 0.13

7,607,955 1.29


31.1.2010 31.1.2009Notes £ £ £ £


during the year 2 89,061,049 (82,545,784) Revenue 3 10,048,043 8,476,811 Expenses 4 (988,058) (824,790) Finance costs: Interest 6 (30,700) (846)

Net revenue before taxation 9,029,285 7,651,175 Taxation 5 (1,371,127) (1,530,234)




31.1.2010 31.1.2009£ £ £ £




158,222,740 27,747,465 Stamp duty reserve tax 11 –Change in net assets attributable to



Comparative figures have been restated for the presentation changes following adoption of the Statement of Recommended Practice (“theSORP”) for Authorised Funds issued by the Investment Management Association (“IMA") in November 2008 (see Accounting Policies).

North American Equity Tracker Statement of Change in NetAssets Attributable to Unitholders for the year ended 31 January 2010

North American Equity Tracker Statement of Total Return for the year ended 31 January 2010

North American Equity Tracker Portfolio Turnover






North American Equity Tracker Notes to Financial Statementsat 31 January 2010



£ £

The net capital gains/(losses) on investments comprise:Gains/(losses) on non-derivative securities 87,183,943 (81,764,209) Gains/(losses) on derivative contracts 2,544,390 (2,841,544) (Losses)/gains on forward currency contracts (117,440) 1,370,404 Other currency (losses)/gains (476,823) 738,386 Transaction costs (73,021) (48,821)


3. Revenue31.1.2010 31.1.2009

£ £

Overseas dividends 10,038,191 8,331,986 Interest from UK bank deposits 9,852 144,825

Total revenue £10,048,043 £8,476,811

4. Expenses31.1.2010 31.1.2009

£ £


904,668 709,041


50,410 42,182

Other expenses:– Safe custody fees 22,674 62,078 – Risk monitoring fees 1,380 1,410 – Audit fee 8,526 8,930 – Dividend ADR charges 400 1,149

32,980 73,567


North American Equity Tracker Balance Sheet at 31 January 2010

31.1.2010 31.1.2009Notes £ £



Liabilities:Investment liabilities (1,023,624) (536,327) – Creditors 9 (935,342) (9,734,041)






31.1.2010 31.1.2009£ £

Interim 4,111,952 2,712,458 Final 4,463,315 3,636,075

8,575,267 6,348,533 Add: Amounts deducted on cancellation of units 256,446 636,309 Less: Amounts received on creation of units (1,173,555) (863,901)

Net distribution for the year 7,658,158 6,120,941 Finance costs: Interest 30,700 846



7. Debtors31.1.2010 31.1.2009

£ £

Sales awaiting settlement – 64,912 Amounts receivable for creation of units 3,618,507 1,759,700 Currency sales awaiting settlement 624,064 3,898,857 Overseas tax recoverable 27,010 2,928 Accrued revenue 573,993 536,876

Total debtors £4,843,574 £6,263,273


£ £



North American Equity Tracker Notes to Financial Statementscontinued


31.1.2010 31.1.2009£ £

Corporation tax 608,723 1,511,022 Overseas tax 1,382,188 1,132,409 Double taxation relief (576,759) (1,117,918) Corporation tax prior year adjustment 6,163 –


Deferred tax charge for the year [see note 5(c)] (49,188) 4,721

Total tax charge for the year £1,371,127 £1,530,234


31.1.2010 31.1.2009£ £


Corporation tax at 20% (2008: 20%) 1,805,857 1,530,235 Effects of:Movement in revenue accruals not taxable 121,839 (19,213) Non taxable overseas dividends (1,318,973) – Overseas tax 1,382,188 1,132,409 Corporation tax prior year adjustment 6,163 – Double Tax Relief (576,759) (1,117,918)



£ £

Opening deferred tax balance 49,409 44,688 Deferred tax charge for the year [see note 5(a)] (49,188) 4,721

Closing deferred tax balance £221 £49,409



Risk Impact of risk

Market price risk The valuation of the Fund’s investments are calculated withreference to market prices quoted by financial agencies andbrokers. Movements to those market prices may materially affectthe value of the Fund's investments, which may move down aswell as up. The Manager undertakes research to minimise theimpact of such movements against the Fund’s investmentobjective.


The Fund invests primarily in companies incorporated in Canada,the United States of America, Brazil and Mexico, which is typicallyconsidered to be an area operating with high levels of liquidity.From time to time, however, market liquidity may be affected byeconomic events.




The Manager maintains a list of approved counterparties. This listis regularly monitored and revised for changes based on thecounterparty’s credit-worthiness, market reputation andexpectations of future financial performance. Transactions willonly be opened with financial intermediaries on the approvedcounterparties list.



9. Creditors31.1.2010 31.1.2009

£ £

Purchases awaiting settlement – 5,328,019 Currency purchases awaiting settlement 624,610 3,960,862 Accrued Manager's service charge 189,439 105,967 Accrued Registrar's fee 30 24 Accrued Trustee's fee 10,616 3,598 Accrued Safe custody fees 22,150 13,483 Accrued Audit fee 8,716 8,930 Bank interest payable 94 –Corporation tax payable 5,054 215,980 Deferred taxation 221 49,409 Transaction costs 74,412 47,769




The Fund’s property is invested with the aim of achieving the investment objective of achievingcapital growth by tracking closely the performance of the FTSE World Americas Index by investingin companies in the Index.

The Manager shall take the risks it deems reasonable to achieve the investment objective. Theserisks include the following:

Risk Impact of risk

Foreign currency risk The risk of changes to foreign currency rates materially affectingthe Sterling equivalent value of foreign denominated assets andliabilities accounted for by the Fund.

The Fund is accounted for in Sterling and holds financial assetsand financial liabilities denominated in Brazilian real, Canadiandollar, Mexican peso and US dollars.

To manage these risks, the Fund may enter into foreign currencytransactions for the purposes of efficient portfolio management.

At 31 January 2010, no forward currency contracts have beenentered into.


(c) Interest Rate Risk Profile of Financial Assets and LiabilitiesThe Interest Rate Risk Profile of Financial Assets and Liabilities at the balance sheet date was as follows:



Brazilian real 117,858 – 26,023,728 26,141,586 Canadian dollar 430,476 – 41,537,111 41,967,587 Mexican nuevo peso 162,084 – 7,607,954 7,770,038 Swiss franc – – 4,648 4,648 UK sterling 47,645 – 3,629,477 3,677,122 US dollar 23,609,405 – 485,382,322 508,991,727

Total £24,367,468 £0 £564,185,240 £588,552,708


£ £ £

Canadian dollar – (56,410) (56,410) UK sterling – (936,451) (936,451) US dollar – (967,214) (967,214)

Total £0 £(1,960,075) £(1,960,075)




Brazilian real 517,515 – 9,131,165 9,648,680 Canadian dollar 457,982 – 21,773,745 22,231,727 Mexican nuevo peso 87,298 – 3,678,399 3,765,697 UK sterling 3,610,543 – 18,440,261 22,050,804 US dollar 3,818,344 – 313,086,969 316,905,313

Total £8,491,682 £0 £366,110,539 £374,602,221



Currency Currency Net Assets


exposures31.1.2010 31.1.2010 31.1.2010

£ £ £

Brazilian real 117,858 26,023,728 26,141,586 Canadian dollar 430,476 41,480,701 41,911,177 Mexican nuevo peso 162,084 7,607,954 7,770,038 Swiss franc – 4,648 4,648 UK sterling 47,645 2,693,025 2,740,670 US dollar 23,609,405 484,415,109 508,024,514

Total £24,367,468 £562,225,165 £586,592,633




exposures31.1.2009 31.1.2009 31.1.2009

£ £ £

Brazilian real 517,515 9,015,505 9,533,020 Canadian dollar 457,982 20,315,270 20,773,252 Mexican nuevo peso 87,298 3,549,426 3,636,724 UK sterling 3,610,543 (2,979,871) 630,672 US dollar 3,818,344 292,341,554 296,159,898

Total £8,491,682 £322,241,884 £330,733,566



31.1.2010 31.1.2010 31.1.2009 31.1.2009£ £ £ £








15. Non Adjusting Post Balance Sheet EventSince the last business day of the accounting period, the Fund's quoted mid price has risen onAccumulation Units from 104.6p to 120.5p as at 15 March 2010, a rise of 15.20%.




Brazilian real – (115,660) (115,660) Canadian dollar – (1,458,475) (1,458,475) Mexican nuevo peso – (128,973) (128,973) UK sterling – (21,420,132) (21,420,132) US dollar – (20,745,415) (20,745,415)

Total £0 £(43,868,655) £(43,868,655)







13. Related Party TransactionsBlackRock Fund Managers Limited, as Manager and Registrar of the Fund, together with The RoyalBank of Scotland plc, as Trustee, are regarded as related parties to the Fund. The Manager acts aseither principal or agent for the Trustee in respect of all transactions of units of the Fund. Theaggregate monies received through creation and paid through cancellation are disclosed in theStatement of Change in Net Assets Attributable to Unitholders. Any amounts due to or from theManager at the period end are disclosed in Notes 7 and 9.

Management fees and registration fees paid to BlackRock Fund Managers Limited and fees paid tothe Trustees are shown in Note 4. The balances due at the period end in respect of these fees areshown in Note 9.


No other transactions were entered into with associates of the Manager during the period.



Pacific ex Japan Equity Tracker Investment Objective & Policy

The aim of the Fund is to seek to achieve capital growth for investors by tracking closely the performanceof the FTSE World Asia-Pacific ex-Japan Index by investing in companies in the Index. Investment will bemade directly into constituent companies and via other transferable securities giving exposure to suchcompanies. The Fund may also invest in permitted money market instruments, permitted deposits, andunits in collective investment schemes. Derivatives and forward transactions may be used for hedgingpurposes and meeting the investment objectives of the Fund. The scheme property of the Fund will in allcases be restricted to investment in property which is eligible as a permitted link in IPRU (INS), or suchother equivalent rules as may replace them from time to time.

The Fund is a sub-fund of BlackRock Collective Investment Funds, a UCITS scheme established underthe Financial Services Authority's Collective Investment Schemes Sourcebook "the Sourcebook". Prior to10 July 2009 the Collective Investment Funds were known as the Qualified Investor Schemes (1). The Fundwas authorised by the FSA on 21 June 2005 and subsequently launched on 18 August 2005. The Fund waspreviously known as Merrill Lynch Pacific ex Japan Equity Tracker Fund. It adopted its present name witheffect from 28 April 2008.

North American Equity Tracker Distribution Table for the period ended 31 January 2010









Pacific ex Japan Equity Tracker Investment Report

The Fund met its objective of tracking the benchmarkOver 12 months to 31 January 2010, the BlackRock Pacific ex-Japan Equity Tracker Fund met its objectiveof closely tracking the FTSE World Asia Pacific ex-Japan index, returning 56.0%* versus the benchmarkreturn of 58.2%*.



Investing in Asia Pacific region companies to match the FTSE World Asia Pacific ex-Japan indexThe Fund seeks to achieve capital growth for investors by tracking closely the performance of the FTSEWorld Asia Pacific ex-Japan index. Investment will be made directly into constituent companies and viaother transferable securities giving exposure to such companies.



Growth in the Asia-Pacific region has remained robust in absolute relative termsEconomic growth in the Asia-Pacific region remained robust in an absolute context and relative to the restof the world, albeit slightly less rapid than was the case a few months ago. Chinese economic data suggestsgrowth remains strong, but is not accelerating further, while in Korea and Taiwan, for example, industrialoutput growth moderated towards year-end. However, this followed exceptional surges in economic activity,which in many regional economies has fully erased the deep cuts in output during the recession.

There have been two main drivers of this regional rebound: first, the recovery in world trade as recessionpressures faded, which has supported Asian export growth; and second, policy stimulus in Asia has beensignificant. This has been the result partly of low interest rates, but also the substantial boost from Chinesefiscal stimulus, although the government acted in January to counter inflationary pressures and the riskof overheating via some liquidity tightening.


Performance Table


to 31.1.2010 to 31.1.2010


The Benchmark returned:Total Return (with net income reinvested)FTSE Pacific ex Japan† +58.2% +64.6%


† Source: BlackRock/Factset. Net of withholding tax. Prior to 10 July 2009 the Collective Investment Funds were known as the QualifiedInvestor Schemes. All fund figures quoted are based on bid to bid, dealing prices (the price at which units are sold). Performance iscalculated net of fees.



31.12.2008 31.12.2007 31.12.2006 31.12.2005 31.12.2004to 31.12.2009 to 31.12.2008 to 31.12.2007 to 31.12.2006 to 31.12.2005*

Pacific ex Japan +55.8% -32.4% +27.7% +11.9% –





Pacific ex Japan Equity Tracker Portfolio Statementat 31 January 2010

PACIFIC BONDS – 0.00%; 2009 0.00%

New Zealand – 0.00%; 2009 0.00%NZ$5,684 Kiwi Income Property 8.95% Convertible Bonds 20/12/2014 2,576 –

PACIFIC EQUITIES – 98.71%; 2009 99.27%

Australia – 37.38%; 2009 31.73%156,600 ABC Learning Centre – – 106,116 Adelaide Brighton 145,392 0.04

81,413 AGL Energy 625,472 0.2461,600 Allco* – –

439,490 Alumina 375,435 0.14221,981 Amcor 724,032 0.27381,014 AMP (Post Reconstruction) 1,318,834 0.50

21,034 Ansell 119,011 0.0441,526 APN News & Media 52,980 0.02

108,599 Aristocrat Leisure 236,144 0.09560,869 Asciano (Stapled) 525,790 0.20

30,886 ASX 583,369 0.2240,708 Austereo 37,710 0.01

329,021 Australand Property (Stapled) 81,217 0.03440,279 Australia & New Zealand Bank 5,304,596 2.01126,242 AWB 74,229 0.03298,357 AXA Asia Pacific 1,084,032 0.41

86,805 Babcock & Brown* – – 41,765 Bank of Queensland 254,841 0.1069,824 Bendigo Bank 379,573 0.14

2,223,675 BGP* – – 629,889 BHP Billiton 13,766,538 5.20

32,984 Billabong International 190,832 0.07331,681 BlueScope Steel 480,204 0.18118,596 Boral 349,325 0.13263,764 Brambles 953,954 0.36

21,555 Caltex Australia 107,371 0.04326,691 CFS Gandel Retail Units 337,066 0.13

78,752 Challenger Financial Services 174,737 0.07100,477 Coca Cola Amatil 606,401 0.23

10,959 Cochlear 378,177 0.14287,836 Commonwealth Bank of Australia 8,497,369 3.21334,400 Commonwealth Property Office Fund 167,872 0.06108,771 Computershare 699,899 0.26104,890 Consolidated Media 173,968 0.07



Pacific ex Japan Equity Tracker Performance Record

Net Asset Value


£ p

2010 172,050,987 264,559,766 153.82009 202,045,005 196,321,071 97.172008 194,982,178 269,051,420 138.0



2010† 1.81362009 3.20512008 3.16682007 1.40502006 2.1554



p p

2010† 169.8 152.62009 164.6 163.42008 157.6 82.532007 167.8 117.62006 121.5 100.72005* 108.5 92.26

† To 31 March.

† To 31 January.* From 18 August.




142,100 Paladin Resources 285,343 0.11131,245 PaperlinX 45,138 0.02

8,957 Perpetual Trust (Aus) 174,047 0.07190,913 Qantas Airways 299,700 0.11190,593 QBE Insurance 2,421,068 0.92

86,139 Rio Tinto 3,249,176 1.23156,881 Santos 1,140,003 0.43258,000 Sigma Pharmaceutical 133,812 0.05

36,546 SIMS 432,004 0.1674,296 Sonic Healthcare 584,395 0.22

305,900 SP AusNet (Stapled) 150,171 0.0646,618 Spotless 68,786 0.03

457,572 Stockland Trust (Stapled) 946,744 0.36235,509 Suncorp 1,161,378 0.44106,737 Tabcorp 415,639 0.16248,471 Tattersall's 317,006 0.12804,177 Telstra 1,485,458 0.56

76,659 Ten Network 64,636 0.02125,569 Toll 599,026 0.23

75,330 Tower Australia 102,376 0.04240,692 Transurban (Stapled) 694,272 0.26189,358 Wesfarmers 2,888,556 1.09

30,494 Wesfarmers (Protected Securities) 466,523 0.1815,050 West Australian Newspapers 60,943 0.02

430,573 Westfield (Stapled) 3,011,802 1.14554,846 Westpac Banking 7,340,495 2.77100,245 Woodside Petroleum 2,352,720 0.89229,267 Woolworths 3,287,506 1.24

43,911 WorleyParsons 572,895 0.22

98,846,003 37.38

Bermuda – 2.46%; 2009 2.23%83,000 Cheung Kong Infrastructure 191,423 0.0694,000 Chinese Estates 93,969 0.04

231,615 Esprit 1,024,615 0.39380,000 Giordano International 71,150 0.03

71,248 Great Eagle 107,982 0.0428,914 Guoco 176,703 0.07

330,000 Hong Kong Land 959,685 0.36141,700 Hopson Developments 110,909 0.04411,717 Johnson Electric 122,416 0.05103,718 Kerry Properties 286,297 0.11



Pacific ex Japan Equity Tracker Portfolio Statement continued

10,893 Corporate Express Australia Limited 23,868 0.01112,890 Crown 484,060 0.18111,975 CSL 1,934,834 0.73253,893 CSR 256,322 0.10866,752 DB RREEF Trust (Stapled) 396,655 0.15

48,212 Downer Edi 220,100 0.0816,000 Energy Reserves of Australia 184,962 0.07

147,505 Envestra (Stapled) 40,093 0.02108,406 Fairfax Media 104,031 0.04

12,474 Flight Centre 134,929 0.05444,300 Fortescue Metals 1,106,591 0.42354,251 Fosters 1,045,411 0.40

68,579 Futuris 54,589 0.021,185,126 Goodman (Stapled) 384,578 0.15

283,600 Goodman Fielder 243,839 0.091,735,775 GPT (Stapled) 548,824 0.21

155,992 Gunns 75,281 0.0356,897 GWA International 95,315 0.04

138,843 Harvey Norman 281,883 0.1189,547 Iluka Resources 160,939 0.06

290,500 Incitec Pivot 543,051 0.21401,819 Insurance Australia 840,304 0.32

49,871 IOOF Holdings 154,918 0.0686,110 James Hardie 358,244 0.1427,609 Leighton 584,877 0.2291,396 Lend Lease 478,590 0.1861,765 Macquarie 1,717,874 0.65

125,481 Macquarie Airports (Stapled) 192,807 0.0780,205 Macquarie Atlas 40,041 0.02

401,028 Macquarie Infrastructure (Stapled) 269,169 0.101,006,968 Macquarie Office Trust 164,779 0.06

139,777 Metcash 328,750 0.12506,213 Mirvac (Stapled) 407,161 0.15392,159 National Australia Bank 5,732,015 2.17

89,286 Newcrest Mining 1,560,617 0.5956,200 New Hope 138,103 0.0537,510 Nufarm 209,319 0.08

242,600 Oil Search 705,158 0.27243,696 Onesteel 420,410 0.16

67,538 Orica 901,006 0.34161,181 Origin Energy 1,430,534 0.54566,648 Oxiana 333,184 0.13






231,000 China Yuran Food 402,817 0.1538,000 Chong Hing Bank 42,507 0.02

451,220 Citic Resources 69,619 0.03338,500 CLP 1,425,366 0.54708,600 Country Garden 145,204 0.05

43,200 Dah Sing Banking 36,104 0.0128,000 Dah Sing Financial 84,377 0.03

604,800 First Pacific 210,930 0.08410,700 Fosun International 181,520 0.07401,000 Foxconn 264,882 0.10

80,000 Fubon Bank (Hong Kong) 19,865 0.01167,300 Galaxy Entertainment 39,660 0.01

2,082,000 Gome Electrical Appliances 456,751 0.17200,000 Hang Lung 558,498 0.21392,735 Hang Lung Property 834,760 0.32145,400 Hang Seng Bank 1,272,415 0.48203,823 Henderson Land Development 809,127 0.31176,200 Hidili 115,682 0.04949,835 Hong Kong & China Gas 1,294,525 0.49165,500 Hong Kong & Shanghai Hotels 144,432 0.05

18,800 Hong Kong Aircraft 148,885 0.06296,000 Hong Kong Electric 1,028,761 0.39200,500 Hong Kong Exchanges & Clearing 2,125,180 0.80181,000 Hopewell Holdings 341,809 0.13207,500 Huabao International 132,063 0.05346,000 Hutchison Harbour 25,024 0.01345,000 Hutchison Telecommunications 34,932 0.01602,000 Hutchison Whampoa 2,566,365 0.97137,970 Hysan Development 213,317 0.08110,000 Industrial & Commercial Bank Of China 134,361 0.05188,600 KWG Properties 71,535 0.03135,400 Kowloon Development 90,201 0.03

1,394,000 Lenovo 601,553 0.23138,000 Li Ning 260,605 0.10145,500 Lifestyle International 148,960 0.06397,500 Link Real Estate Investment Trust 594,137 0.22339,593 Mass Transit Railway 684,966 0.26

44,000 Melco International Developments 11,067 – 378,500 Mongolia Energy 115,581 0.04259,600 New World China 49,650 0.02535,698 New World Development 550,158 0.21136,000 NWS Holdings 138,360 0.05




531,600 Li & Fung 1,516,526 0.57251,400 Nine Dragons Paper 222,226 0.08551,460 Noble 706,073 0.27

46,300 Orient Overseas 197,380 0.07209,000 People's Food 67,828 0.03293,203 Shangri-La Asia 318,082 0.12140,000 Texwinca 77,065 0.03256,000 TPV Technology 100,391 0.04

83,500 Yue Yuen Industrials 161,040 0.06

6,511,760 2.46

Cayman Islands – 1.32%; 2009 1.16%34,000 ASM 176,365 0.06

559,288 Chaoda Modern Agriculture 343,372 0.12239,000 China Mengniu Dair 459,021 0.17328,000 Global Bio-Chem 56,933 0.02132,700 Greentown China 99,386 0.04168,000 Hengan International 702,019 0.27179,100 Hopwell Highway 70,523 0.03136,000 Hutchison Telecom 23,388 0.01127,000 Kingboard Chemical 332,704 0.13224,000 Lee & Man Paper Manufacturing 80,462 0.03143,700 Parkson Retail 154,046 0.06

3,522,000 Semiconductor Manufacturing 161,325 0.06251,100 Shimao Property 241,332 0.09444,000 Tingyi 599,417 0.23

3,500,293 1.32

Hong Kong – 12.67%; 2009 20.83%295,800 Agile Property Developments 232,949 0.09285,600 Alibaba.com 403,472 0.15125,100 Anta Sports Products 102,942 0.04348,703 Bank of East Asia 746,774 0.28502,400 Belle International 356,086 0.13783,500 BOC Hong Kong 1,023,755 0.39293,200 C C Land 67,150 0.03

62,000 Café de Coral 84,201 0.03306,000 Cathay Pacific 314,260 0.12327,000 Cheung Kong 2,417,531 0.91109,400 China High Speed 136,617 0.05242,100 China Huiyuan Juice Group (Hong Kong Line) 97,664 0.04452,000 China Travel International 69,739 0.03




1,655,136 Golden Agri-Resources 378,952 0.1423,000 GuocoLand 22,495 0.0136,971 Haw Par 92,208 0.0343,800 Hotel Properties 39,723 0.0229,724 Jardine Cycle & Carriage 334,062 0.1349,600 Jardine Matheson 920,559 0.35

218,000 Keppel 811,194 0.31123,200 Keppel Land 179,102 0.07

57,375 MobileOne (Post Reconstruction) 52,290 0.02168,250 Neptune Orient Lines 128,655 0.05263,800 Olam International 280,295 0.11463,424 Oversea-Chinese Banking 1,687,351 0.64116,000 Pacific Century 9,025 – 180,160 Parkway 215,454 0.08157,700 Sembcorp Industries (Post Reorganisation) 247,485 0.09145,800 Sembcorp Marine 214,550 0.08

52,900 SIA Engineering 78,550 0.03117,133 Singapore Airlines 719,665 0.27203,000 Singapore Exchange 721,084 0.27

41,000 Singapore Land 115,745 0.04220,000 Singapore Post 98,784 0.04297,250 Singapore Press 487,631 0.18305,000 Singapore Technology & Engineering 418,988 0.16

1,534,116 Singapore Telecomm 2,039,259 0.77114,000 SMRT Corporation 95,788 0.04104,770 Starhub 101,074 0.04107,000 STATS ChipPAC 49,948 0.02

22,190 STX Pan Ocean 143,241 0.05222,760 United Overseas Bank 1,798,440 0.68127,276 UOL 211,622 0.08

58,000 Venture 218,401 0.0862,000 Wheelock Properties (Singapore line) 53,473 0.02

494,100 Wilmar International 1,447,582 0.55136,416 Wing Tai 118,261 0.04391,600 Yangzijiang Shipbuilding 184,540 0.07

88,600 Yanlord Land 68,931 0.03

19,938,932 7.54

South Korea – 20.79%; 2009 20.59%940 Amore Pacific 406,481 0.15570 Cheil Communications 80,834 0.03

8,787 Cheil Industries 263,385 0.10



832,382 PCCW 136,455 0.0570,000 Public Financial 21,657 0.01

481,600 Sands China 420,294 0.16247,410 Shui On Land 73,562 0.03182,000 Shun Tak 66,107 0.02449,813 Sino Land 466,292 0.18352,100 Soho China 107,802 0.04362,200 Sun Hung Kai Property 2,919,348 1.10173,000 Swire Pacific 1,174,038 0.44277,000 Techtronic Industries 142,684 0.05

71,000 Television Broadcast 204,828 0.08138,300 Tencent 1,610,375 0.61985,400 Want Want China 390,388 0.15252,875 Wharf 785,402 0.30169,177 Wheelock 275,298 0.10

46,500 Wing Hang Bank 245,689 0.09

33,569,870 12.67

New Zealand – 0.65%; 2009 0.71%48,552 Air New Zealand 27,342 0.01

205,405 Auckland International Airport 173,513 0.0766,705 Contact Energy 169,925 0.06

100,900 Fisher & Paykel Healthcare 148,715 0.06120,388 Fletcher Building 419,496 0.16

99,466 Kiwi Income Property Trust 44,199 0.0292,638 Sky City 134,093 0.0547,517 Sky Network Television 99,303 0.04

335,679 Telecom 351,496 0.1361,132 Vector 52,447 0.0241,671 Warehouse 70,035 0.03

1,690,564 0.65

Singapore – 7.54%; 2009 7.24%192,000 Allgreen Properties 99,015 0.04361,880 CapitaCommercial 168,926 0.06589,500 CapitaLand 1,008,991 0.38431,050 Capitamall Trust 323,860 0.12133,000 City Developments 629,124 0.24430,759 ComfortDelGro 304,491 0.12137,000 Cosco 76,742 0.03322,000 DBS 2,044,217 0.77269,900 Fraser & Neave 499,159 0.19





31,010 Hyundai Securities 228,212 0.097,612 Hyundai Steel 348,790 0.13

28,160 Industrial Bank of Korea 198,918 0.0833,080 Kangwon Land 280,762 0.1170,420 KB Financial Group 1,914,092 0.71

1,140 KCC 208,822 0.0853,280 Kia Motors 558,104 0.2147,670 Korea Electric Power 982,035 0.3752,180 Korea Exchange Bank 368,592 0.14

1,595 Korea Express 46,096 0.025,207 Korea Gas 145,168 0.05

11,101 Korea Investment 183,070 0.076,170 Korean Air Lines 187,262 0.07

23,172 KT 619,882 0.2312,414 KT&G 451,457 0.17

4,100 Kumho Industrial 10,186 – 17,134 LG 578,930 0.22

9,628 LG Chemical 1,034,386 0.3920,849 LG Electronics 1,215,154 0.46

1,012 LG Hausys 57,624 0.022,393 LG Household & Healthcare 364,428 0.14

51,360 LG Philips 1,044,257 0.3947,379 LG Telecom 229,058 0.09

260 Lotte Chilsung Beverage 114,526 0.04240 Lotte Confectionery 158,445 0.06

4,870 Lotte Midopa 29,300 0.011,800 Lotte Shopping 288,625 0.116,532 LS Cable 335,444 0.133,815 Mirae Asset Securities 119,271 0.052,839 NCsoft 198,255 0.079,172 NHN 849,903 0.32

980 Nong Shim 119,500 0.051,819 Pacific 127,515 0.05

16,710 Posco 4,811,247 1.8232,510 Pusan Bank 198,212 0.07

6,250 S1 156,452 0.067,600 Samsung Card 208,618 0.083,903 Samsung Digital Imaging 93,403 0.04

10,604 Samsung Electro Mechanics 555,381 0.2127,825 Samsung Electronic 11,703,434 4.4228,784 Samsung Electronics 889,069 0.34

7,600 Samsung Engineering 461,327 0.17




3,230 CJ 116,424 0.041,449 CJ CheilJedang 162,679 0.06

24,850 Daegu Bank 197,562 0.076,370 Daelim Industrial 262,111 0.10

21,716 Daewoo Engineering & Construction 138,234 0.0515,375 Daewoo International 284,938 0.1125,280 Daewoo Securities 262,090 0.1013,090 Daewoo Shipbuilding & Marine Engineering 126,921 0.0512,420 Daishin Securities 101,744 0.04

6,480 Daishin Securities Preference Shares 34,565 0.011,926 Daum Communication 73,043 0.034,100 DC Chemical 383,221 0.14

14,300 Dongbu Insurance 257,334 0.107,850 Dongkuk Steel Mill 96,987 0.044,300 Doosan Corporation 236,760 0.097,516 Doosan Heavy Industry 333,087 0.13

14,240 Doosan Infracore 133,864 0.051,800 Glovis 92,921 0.047,840 GS 145,295 0.057,155 GS Engineering & Construction 340,918 0.13

10,590 Halla Climate Control 67,411 0.0330,090 Hana Financial 537,440 0.20

5,482 Hanjin Heavy Industry & Construction 63,460 0.028,925 Hanjin Shipping 113,145 0.04

21,840 Hankook Tire Manufacturing 261,035 0.1014,900 Hanwha 373,383 0.1410,858 Hanwha Chemical 85,157 0.03

1,600 Hite Brewery 136,228 0.053,100 Honam Petrochemicals 187,340 0.07

85,420 Hynix Semiconductors 1,041,602 0.396,382 Hyosung 278,374 0.114,541 Hyundai Department Store 246,371 0.09

15,292 Hyundai Development 294,900 0.1115,190 Hyundai Engineering & Construction 525,485 0.2011,037 Hyundai Heavy Industry 1,105,723 0.42

6,000 Hyundai Hysco 51,085 0.0211,190 Hyundai Merchant Marine 174,319 0.07

2,793 Hyundai Merchant Marine (Cumulative redemption Preference stock) 22,505 0.01

3,119 Hyundai Mipo Dock 181,786 0.0713,591 Hyundai Mobis 1,076,861 0.4131,709 Hyundai Motor 1,924,763 0.73




94,024 China Motor 33,888 0.011,787,864 China Steel 1,131,597 0.431,689,087 Chinatrust Financial 575,784 0.221,553,845 Chunghwa Picture Tubes 118,685 0.04

948,784 Chunghwa Telecom 1,076,851 0.41673,000 CMC Magnetics 106,885 0.04

35,838 Compal Communications 24,573 0.01726,233 Compal Electronic 632,737 0.24107,371 Coretronics 95,436 0.04

3,924 DBTel 251 – 307,219 Delta Electronic 579,146 0.22

90,171 D-Link 59,362 0.02423,138 E.Sun Financial 98,778 0.04155,792 Eternal Chemical 94,193 0.04197,724 EVA Airways 48,475 0.02349,984 Evergreen Marine 125,799 0.05335,668 Far East International Bank 66,884 0.03645,375 Far East Textile 443,779 0.17336,710 Far Eastone Telecommunications 254,883 0.10

33,368 Faraday Technology 40,936 0.02128,773 Feng Hsin Iron & Steel 131,061 0.05832,635 First Financial 290,339 0.11820,976 Formosa Chemical & Fibre 1,109,811 0.42373,291 Formosa Petrochemicals 587,024 0.22

1,168,708 Formosa Plastic 1,518,238 0.57291,590 Formosa Taffeta 133,006 0.05175,375 Foxconn 433,382 0.16

1,131,383 Fubon Financial 826,597 0.3163,660 Giant Manufacturing 106,949 0.04

1,096,701 Hannstar Display 155,324 0.06151,784 High Tech Computer 934,004 0.35

1,591,245 Hon Hai Precision 4,165,376 1.57953,298 Hua Nan Financial 344,519 0.13380,334 Inotera Memories 171,257 0.06620,943 Innolux Display 636,830 0.24599,097 Inventec 213,586 0.08

64,698 Inventec Appliance 37,916 0.01497,306 KGI Securities 146,694 0.06

1 Kinpo Electronics – – 16,566 Largan Precision 134,786 0.05

447,501 Lite-On Technology 355,796 0.137,493 Lite-on It 4,860 –




4,476 Samsung Fine Chemicals 114,570 0.048,690 Samsung Fire & Marine 863,591 0.33

43,810 Samsung Heavy 563,631 0.216,439 Samsung SDI 468,677 0.18

12,056 Samsung Securities 409,943 0.159,641 Samsung Techwin 393,079 0.15

89,197 Shinhan Financial 1,962,097 0.742,650 Shinsegae 745,922 0.28

667 Sindo Ricoh 19,348 0.018,817 SK 394,532 0.15

12,750 SK Energy 719,144 0.2713,100 SK Networks 72,833 0.03

7,150 SK Telecom 700,947 0.263,500 SKC 31,492 0.01

17,004 S-Oil 466,754 0.1811,324 STX Corporation 100,673 0.0412,700 STX Shipbuilding 79,819 0.0316,000 Woong Jin Coway 306,835 0.1248,600 Woori Finance 348,525 0.1317,210 Woori Investment & Securities 140,059 0.05

1,821 Yuhan 165,315 0.07

55,020,769 20.79

Taiwan – 15.90%; 2009 14.78%492,854 Acer 863,621 0.33806,589 Advanced Semiconductor 400,220 0.15

90,211 Advantech 114,371 0.04312,418 Asia Cement 184,618 0.07

35,886 Asia Optical 46,759 0.02816,371 Asustek Computer 985,572 0.37

1,670,745 AU Optronics 1,168,438 0.44245,779 Capital Securities 79,461 0.03

80,025 Catcher Technology 112,244 0.04926,837 Cathay Financial 979,519 0.37292,000 Cathay Real Estate 80,715 0.03753,047 Chang Hwa Bank 211,835 0.08146,558 Cheng Shin Rubber 175,788 0.07

44,080 Cheng Uei Precision Industry 56,402 0.02977,996 Chi Mei Optoelectric 477,628 0.18124,663 Chicony Electronic 191,901 0.07389,375 China Air Lines 81,008 0.03

2,004,585 China Development Financial 347,345 0.13




159,196 Vanguard International 47,737 0.02120,368 Via Technologies 41,149 0.02463,641 Walsin Lihwa 99,176 0.04252,208 Wan Hai Lines 78,337 0.03184,335 Waterland 36,550 0.01404,000 WinBonds Electronic 62,269 0.02330,696 Wistron Corporation 393,422 0.15179,237 Ya Hsin Industrial* – –313,000 Yageo 68,176 0.03154,445 Yangming Marine 34,395 0.01

1 Yieh Phui Enterprise* – – 1,093,802 Yuanta Financial 434,826 0.16

220,195 Yuen Foong Yu Manufacturing 52,693 0.02196,005 Yulon Motor 123,292 0.05

42,068,759 15.90

DERIVATIVES – (0.05)%; 2009 (0.07)%

Forward Currency Contracts – 0.00%; 2009 (0.05)%

Futures – (0.05)%; 2009 (0.02)%6 Hang Seng Index February 2010 (5,301) –

69 MSCI Taiwan Index February 2010 (33,872) (0.01) 34 SPI 200 March 2010 (98,685) (0.04)

(137,858) (0.05)


Total net assets £264,559,766 100.00


* These securities are classified as delisted.





532,292 Macronix International 185,610 0.07154,330 Media Tek 1,564,696 0.59

1,643,572 Mega Financial 553,847 0.2186,083 Micro-Star International 33,633 0.01

154,791 Mitac International 44,450 0.021,121,357 Nan Ya Plastic 1,314,339 0.50

55,684 Nan Ya Printed 146,851 0.06328,672 Nanya Technology 168,541 0.06

72,238 Novatek Microelectronics 132,932 0.0572,918 Oriental Union Chemicals 34,614 0.01

342,040 Polaris Securities 107,576 0.04491,011 Pou Chen 230,205 0.09

1,653,293 Powerchip Semiconductors 130,157 0.0595,551 President Chain 136,634 0.05

221,697 President Securities 81,203 0.031,424,924 Promos Technologies 59,847 0.02

184,905 Qisda 60,142 0.02328,782 Quanta Computer 409,771 0.15

75,706 Realtek Semiconductors 129,405 0.05370,610 Ritek 58,860 0.02968,768 Shin Kong Financial 231,829 0.09571,773 Siliconware Precision 473,031 0.18

1,243,674 Sinopac 255,099 0.101 Sunplus Technology 1 –

233,923 Synnex Technology International 300,228 0.11953,526 Taishin Financial 239,358 0.09577,559 Taiwan Business Bank 93,307 0.04352,113 Taiwan Cellular 423,716 0.16320,279 Taiwan Cement 186,448 0.07843,681 Taiwan Cooperative Bank 309,024 0.12129,000 Taiwan Fertilizer 262,081 0.10328,718 Taiwan Glass 171,454 0.06

80,150 Taiwan Secom 80,165 0.034,776,512 Taiwan Semiconductor Manufacturing 5,729,168 2.171,092,000 Tatung 148,899 0.06

438,000 Teco Electric & Machine 110,376 0.04132,630 Ton Yi Industrial 30,314 0.01

28,318 Transcend Information 57,255 0.0261,740 U-Ming Marine Transport 73,330 0.03

272,597 Unimicron Technology 207,948 0.08712,896 Uni-President 474,890 0.18

1,765,365 United Micro Electronics 551,781 0.21


31.1.2010 31.1.2009Notes £ £ £ £


during the year 2 128,351,822 (112,100,336) Revenue 3 9,308,597 10,826,730 Expenses 4 (712,563) (803,944) Finance costs: Interest 6 (14,595) (77,220)

Net revenue before taxation 8,581,439 9,945,566 Taxation 5 (910,151) (2,216,636)




31.1.2010 31.1.2009£ £ £ £




(67,082,425) 31,482,880 Stamp duty reserve tax 19 –Change in net assets attributable to



Comparative figures have been restated for the presentation changes following adoption of the Statement of Recommended Practice (“the SORP”) for Authorised Funds issued by the Investment Management Association (“IMA”) in November 2008 (see Accounting Policies note 1(a)).

Pacific ex Japan Equity Tracker Statement of Change in NetAssets Attributable to Unitholders for the year ended 31 January 2010

Pacific ex Japan Equity Tracker Statement of Total Return for the year ended 31 January 2010

Pacific ex Japan Equity Tracker Portfolio Turnover






Pacific ex Japan Equity Tracker Notes to Financial Statementsat 31 January 2010



£ £

The net capital gains/(losses) on investments comprise:Gains/(losses) on non–derivative securities 126,188,292 (110,495,431) Gains/(losses) on derivative contracts 2,561,610 (2,196,434) Gains/(losses) on forward currency contracts 401,311 (23,948) Other currency (losses)/gains (670,701) 686,496 Transaction costs (128,690) (71,019)

Net Capital Gains/(Losses) on Investments £128,351,822 £(112,100,336)

3. Revenue31.1.2010 31.1.2009

£ £

Overseas dividends 9,010,132 10,758,835 Stock dividends 258,303 – Interest from overseas fixed interest securities 45 – Interest from UK bank deposits 40,117 67,895

Total revenue £9,308,597 £10,826,730

4. Expenses31.1.2010 31.1.2009

£ £


571,992 546,120


32,347 32,435

Other expenses:– Safe custody fees 98,223 215,049 – Audit fee 8,550 8,930 – Risk monitoring fees 1,380 1,410 – Legal & professional fees 71 –

108,224 225,389


31.1.2010 31.1.2009Notes £ £

Assets:Investment assets 261,149,526 195,042,369 – Debtors 7 1,342,889 844,187 – Cash and bank balances 8 2,873,111 1,952,685


Liabilities:Investment liabilities (137,858) (285,880) – Creditors 9 (667,902) (1,232,276) – Bank overdraft – (14)

Total other liabilities (667,902) (1,232,290) Total liabilities (805,760) (1,518,170)



Pacific ex Japan Equity Tracker Balance Sheetat 31 January 2010



31.1.2010 31.1.2009£ £

Interim 3,590,735 4,534,022 Final 3,120,241 3,353,085

6,710,976 7,887,107 Add: Amounts deducted on cancellation of units 1,153,209 1,606,706 Less: Amounts received on creation of units (451,200) (1,764,883)



Net revenue after taxation for the year 7,671,288 7,728,930 Less: non distributable stock dividends (258,303) –

Net distribution for the year £7,412,985 £7,728,930

Details of the interim and final distributions per unit are set out in the tables on page 208.

7. Debtors31.1.2010 31.1.2009

£ £

Sales awaiting settlement – 319,695 Amounts receivable for creation of units 730,120 – Currency sales awaiting settlement 113,237 – Accrued revenue 499,532 524,492

Total debtors £1,342,889 £844,187


£ £

Amount held at futures clearing houses and brokers 324,898 844,476 Cash and bank balances 2,548,213 1,108,209


Pacific ex Japan Equity Tracker Notes to Financial Statementscontinued


31.1.2010 31.1.2009£ £

Corporation tax 605,038 1,981,068 Corporation tax prior year adjustment 19,523 –Overseas tax 487,552 705,654 Double taxation relief (148,271) (458,033)

Total current tax charge for the year [see Note 5(b)] £963,842 £2,228,689

Deferred tax charge for the year [see note 5(c)] (53,691) (12,053)

Total tax charge for the year £910,151 £2,216,636


31.1.2010 31.1.2009£ £


Corporation tax at 20% (2009: 20%) 1,716,288 1,989,113 Effects of:Movement in revenue accruals taxable on receipt – 41,104 Movement in revenue accruals not taxable 117,700 – Non taxable overseas dividends (1,177,289) – Overseas tax 487,552 705,654 Tax Effect of expense relief (current) – (49,149) Non taxable stock dividends (51,661) –Adjustment in respect of prior years 19,523 – Double taxation relief (148,271) (458,033)

Total current tax charge for the year [see Note 5(a)] £963,842 £2,228,689


£ £

Opening deferred tax balance 53,691 65,744 Deferred tax charge for the year [see note 5(a)] (53,691) (12,053)

Closing deferred tax balance – £53,691



Risk Impact of risk

Market price risk The valuation of the Fund’s investments are calculated withreference to market prices quoted by financial agencies andbrokers. Movements to those market prices may materially affectthe value of the Fund’s investments, which may move up as wellas down. The Manager undertakes research to minimise theimpact of such movements against the Fund’s investmentobjective.


The Fund invests primarily in companies incorporated in thePacific Basin. From time to time, market liquidity across thePacific Basin may be affected by economic and socio-politicalevents.


All stocks are valued daily. Stocks identified as being illiquid arereviewed for pricing accuracy as the need arises and on a formalmonthly basis by the BlackRock Pricing Committee. TheBlackRock Pricing Committee will also review any significantmarket events which affect the liquidity of assets.

Counterparty risk The risk of entering into an arrangement with a counterparty,which is itself subject to financial risks which may affect its abilityto trade as a going concern.




9. Creditors31.1.2010 31.1.2009

£ £

Amounts payable for cancellation of units – 108,857 Currency purchases awaiting settlement 113,317 – Accrued Manager's service charge 95,612 73,771 Accrued Registrar's fee 14 22 Accrued Trustee's fee 5,490 2,263 Accrued Safe custody fees 94,309 63,772 Accrued Audit fee 8,740 8,930 Bank interest payable 2 –Corporation tax payable 238,798 850,331 Deferred taxation – 53,691 Transaction costs 111,620 70,639




The Fund’s property is invested with the aim of achieving capital growth by tracking closely theperformance of the FTSE World Asia Pacific ex-Japan Index by investing in companies in the Index.


Risk Impact of risk


The Fund is accounted for in Sterling and holds financial assetsand financial liabilities denominated in Australian dollar, HongKong dollar, New Zealand dollar, Singapore dollar, South Koreanwon, Swiss franc, Taiwan dollar, Thailand baht and US dollar.

To manage these risks, the Fund has entered into forward foreigncurrency transactions during the year for the purposes of efficientportfolio management. There were no outstanding transactions atthe balance sheet date.


(c) Interest Rate Risk Profile of Financial Assets and LiabilitiesThe Interest Rate Risk Profile of Financial Assets and Liabilities at 31 January 2010 was as follows :



Australian dollar 2,098,918 – 99,080,711 101,179,629 Hong Kong dollar 431,623 – 41,849,063 42,280,686 New Zealand dollar 6,321 2,576 1,690,607 1,699,504 Singapore dollar 64,364 – 19,800,968 19,865,332 South Korean won 67 – 55,387,075 55,387,142 Swiss franc 10 – – 10 Taiwan dollar 89,693 – 42,068,754 42,158,447 Thailand baht 138 – – 138 UK sterling 6,821 – 732,416 739,237 US dollar 175,156 – 1,880,245 2,055,401

Total £2,873,111 £2,576 £262,489,839 £265,365,526



Australian dollar – (98,685) (98,685) Hong Kong dollar – (5,301) (5,301) South Korean won – (2,317) (2,317) UK sterling – (665,585) (665,585) US dollar – (33,872) (33,872)

Total £0 £(805,760) £(805,760)




New Zealand dollar 2,576 8.69 4.89 years






exposures31.1.2010 31.1.2010 31.1.2010

£ £ £

Australian dollar 2,098,918 98,982,026 101,080,944 Hong Kong dollar 431,623 41,843,762 42,275,385 New Zealand dollar 6,321 1,693,183 1,699,504 Singapore dollar 64,364 19,800,968 19,865,332 South Korean won 67 55,384,758 55,384,825 Swiss franc 10 – 10 Taiwan dollar 89,693 42,068,754 42,158,447 Thailand baht 138 – 138 UK sterling 6,821 66,831 73,652 US dollar 175,156 1,846,373 2,021,529

Total £2,873,111 £261,686,655 £264,559,766




exposures31.1.2009 31.1.2009 31.1.2009

£ £ £

Australian dollar 460,343 63,357,309 63,817,652 Hong Kong dollar 202,825 46,910,989 47,113,814 New Zealand dollar 23 1,372,916 1,372,939 Singapore dollar 42 13,687,333 13,687,375 South Korean won (14) 40,846,870 40,846,856 Swiss franc 10 – 10 Taiwan dollar 814,912 29,041,761 29,856,673 Thailand baht 145 – 145 UK sterling 135,799 (1,927,678) (1,791,879) US dollar 338,586 1,078,900 1,417,486

Total £1,952,671 £194,368,400 £196,321,071




13. Related Party TransactionsBlackRock Fund Managers Limited, as Manager and Registrar of the Fund, together with The RoyalBank of Scotland plc, as Trustee, are regarded as related parties to the Fund. The Manager acts aseither principal or agent for the Trustee in respect of all transactions of units of the Fund. Theaggregate monies received through creation and paid through cancellation are disclosed in theStatement of Change in Net Assets Attributable to Unitholders. Any amounts due to or from theManager at the year end are disclosed in Notes 7 and 9.

Management fees and registration fees paid to BlackRock Fund Managers Limited and fees paid tothe Trustees are shown in Note 4. The balances due at the year end in respect of these fees areshown in Note 9.



31.1.2010 31.1.2010 31.1.2009 31.1.2009£ £ £ £








15. Non Adjusting Post Balance Sheet EventSince the last business day of the accounting period, the Fund's quoted mid price has risen onAccumulation Units from 153.7p to 174.2p as at 15 March 2010, a rise of 13.34%.




Australian dollar 460,343 – 65,413,738 65,874,081 Hong Kong dollar 202,825 – 47,879,976 48,082,801 New Zealand dollar 23 – 1,372,916 1,372,939 Singapore dollar 42 – 14,086,298 14,086,340 South Korean won – – 40,846,870 40,846,870 Swiss franc 10 – – 10 Taiwan dollar 814,912 – 29,041,761 29,856,673 Thailand baht 145 – – 145 UK sterling 135,799 – 4,152,047 4,287,846 US dollar 338,586 – 1,577,363 1,915,949

Total £1,952,685 £0 £204,370,969 £206,323,654



Australian dollar – (2,056,429) (2,056,429) Hong Kong dollar – (968,987) (968,987) Singapore dollar – (398,965) (398,965) South Korean won (14) – (14) UK sterling – (6,079,725) (6,079,725) US dollar – (498,463) (498,463)

Total £(14) £(10,002,569) £(10,002,583)








UK Equity Tracker Investment Objective & Policy

The aim of the Fund is to seek to achieve capital growth for investors by tracking closely the performanceof the FTSE All Share Index by investing in companies in the Index. Investment will be made directly intoconstituent companies and via other transferable securities giving exposure to such companies. The Fundmay also invest in permitted money market instruments, permitted deposits, and units in collectiveinvestment schemes. Derivatives and forward transactions may be used for hedging purposes andmeeting the investment objectives of the Fund. The scheme property of the Fund will in all cases berestricted to investment in property which is eligible as a permitted link in IPRU (INS), or such otherequivalent rules as may replace them from time to time.

The Fund is a sub-fund of BlackRock Collective Investment Funds, a UCITS scheme established underthe Financial Services Authority's Collective Investment Schemes Sourcebook "the Sourcebook". Prior to10 July 2009 the Collective Investment Funds were known as the Qualified Investor Schemes (1). The Fundwas authorised by the FSA on 21 June 2005 and subsequently launched on 18 August 2005. The Fund waspreviously known as Merrill Lynch UK Equity Tracker Fund. It adopted its present name with effect from28 April 2008.

Pacific ex Japan Equity Tracker Distribution Tablesfor the year ended 31 January 2010









UK Equity Tracker Investment Report

The Fund met its objective of tracking the benchmarkOver 12 months to 31 January 2010, the BlackRock UK Equity Tracker Fund met its objective of closelytracking the FTSE All-Share index, returning 32.5%* versus the benchmark return of 33.2%*.

Here, we focus on the second six months of the period, during which time the Fund returned 13.9%* and the benchmark returned 14.7%*.


Investing in UK companies to match the FTSE All-Share indexThe Fund seeks to achieve capital growth for investors by tracking closely the performance of the FTSEAll-Share index. Investment will be made directly into constituent companies and via other transferablesecurities giving exposure to such companies.



Improved, but challenging, cyclical conditions will likely persist into 2010 The United Kingdom was still in recession during the third quarter of 2009, before a weaker-than-expected return to growth in the final quarter did nothing to allay fears that the UK economy remainsvulnerable, particularly in comparison to other developed economies where evidence of economicrecovery has been more apparent. More-positive trends do, nevertheless, appear evident in the UnitedKingdom as well: housing appears to have bottomed; consumption is increasing moderately; and therehas been a strong bounce in business confidence, particularly in services.

The economy is likely to grow moderately in 2010; however, any upturn is unlikely to be robust. There arethree main challenges: over-leverage in the personal sector, implying a bias to higher savings; generalfinancial constraints associated with the weak banking system; and an eventual shift to fiscal tightening,albeit not in the near future. Against this, monetary policy has been eased significantly and this easierbias will persist well into the year. Improved, but challenging, cyclical conditions will likely persist into2010, but a “normal” cyclical environment—with the economy less reliant on policy support—appears tobe a long way off.


Performance Table


to 31.1.2010 to 31.1.2010


The Benchmark returned:Total Return (with net income reinvested)FTSE All-Share† +33.2% +17.4%


† Source: Datastream. Prior to 10 July 2009 the Collective Investment Funds were known as the Qualified Investor Schemes. All Fundfigures quoted are based on bid to bid, dealing prices (the price at which units are sold). Performance is calculated net of fees.



31.12.2008 31.12.2007 31.12.2006 31.12.2005 31.12.2004to 31.12.2009 to 31.12.2008 to 31.12.2007 to 31.12.2006 to 31.12.2005*

UK Equity +29.8% -29.9% +4.8 +16.3 –





UK Equity Tracker Portfolio Statementat 31 January 2010

UNITED KINGDOM – 97.39%; 2009 98.62%

Aerospace & Defence – 1.87%; 2009 2.36% 4,980,718 BAE Systems 17,576,954 0.79

50,179 Chemring 1,619,276 0.071,559,166 Cobham 3,626,620 0.16

235,020 Hampson Industries 152,763 0.01966,902 Meggitt 2,507,177 0.11929,662 QinetiQ 1,244,817 0.06

2,546,248 Rolls Royce 12,204,167 0.5596,794 Ultra Electronics 1,229,284 0.0569,030 Umeco 225,210 0.01

254,107 VT 1,364,555 0.06

41,750,823 1.87

Automobiles & Parts – 0.11%; 2009 0.05% 2,202,653 GKN 2,537,456 0.11

Banks – 12.58%; 2009 8.86% 15,939,282 Barclays 43,123,727 1.9324,214,498 HSBC 164,004,794 7.3450,782,914 Lloyds Banking Group 26,000,852 1.16

613,859 Northern Rock* – –23,383,939 Royal Bank of Scotland 7,553,012 0.34

2,786,327 Standard Chartered 40,457,468 1.81

281,139,853 12.58

Beverages – 2.97%; 2009 3.19% 35,300 Barr (AG) 279,576 0.01

305,246 Britvic 1,285,391 0.063,531,370 Diageo 37,185,326 1.661,626,968 SABMiller 27,821,153 1.24

66,571,446 2.97

Chemicals – 0.33%; 2009 0.30% 193,532 Croda 1,453,425 0.06224,149 Delta 355,276 0.02655,607 Elementis 334,360 0.01295,133 Johnson Matthey 4,314,844 0.19117,837 Victrex 961,550 0.04164,200 Yule Catto 285,708 0.01

7,705,163 0.33



UK Equity Tracker Performance Record

Income Net Accumulations


2010† 1.42792009 3.71612008 4.23952007 3.84082006 2.8637



p p

2010† 118.8 110.12009 115.7 70.742008 127.6 74.072007 132.5 114.92006 121.0 102.5

† To 31 March.

† To 31 January



Net Asset Value


£ p

2010 2,026,567,304 2,238,473,670 110.52009 1,718,161,227 1,422,638,894 82.802008 1,535,005,762 1,765,868,906 115.0


325,900 Absolute Return Trust 387,821 0.02116,456 Advance Developing Market Trust 450,685 0.02923,916 Alliance Investment Trust 2,891,857 0.12371,971 Alternative Investment Strategies Sterling Hedged Shares 411,028 0.02259,027 Anglo & Overseas Trust 244,781 0.01559,230 Babcock & Brown Public Partnership 641,996 0.03

93,376 Baillie Gifford Japan Investment Trust 142,865 0.01160,798 Bankers Investment Trust 562,954 0.03

55,032 Barings Emerging Europe 420,169 0.0241,600 BH Global (GB Line) 468,000 0.0244,889 BH Global (US Line) 311,791 0.0133,072 BH Macro (GBP) 588,020 0.0334,000 BH Macro (EUR) 498,122 0.0257,679 Blackrock UK Smaller Companies Investment Trust 171,451 0.01

106,000 Blackrock Commodities Income Investment Trust 127,995 0.0111,600 Blackrock Greater Europe Investment Trust 18,821 –64,884 Blackrock Latin American Investment Trust 363,675 0.02

505,496 Blackrock New Energy Technology Trust 214,836 0.01101,099 Blackrock New Energy Subscription Shares 5,813 –253,732 Blackrock World Mining Trust 1,299,108 0.05302,000 Bluecrest Allblue Fund 484,710 0.02432,703 British Assets Investment Trust 459,098 0.02227,557 British Empire Securities & General Investment Trust 940,266 0.04

41,693 Brunner Investment Trust 151,346 0.0162,539 Caledonia Investments 975,608 0.0432,334 Candover Investments 163,610 0.01

164,928 City Merchants High Yield Investment Trust 257,288 0.0194,500 City National 164,430 0.01

296,743 City of London Investment Trust 701,797 0.03812,270 Dexion Absolute 1,166,420 0.04

60,700 Dexion Commodities 55,085 –137,226 Dexion Equity Alternative 151,978 0.01154,447 Dexion Trading 179,931 0.01

3,586 Director’s Dealing Investment Trust 9,252 –39,700 Dunedin Enterprise 113,939 0.01

222,995 Dunedin Income Growth Investment Trust 394,701 0.02108,206 Eastern European Investment Trust 259,965 0.01326,600 Ecofin Water & Power Opportunities Investment Trust 437,971 0.02338,721 Edinburgh Dragon Investment Trust 603,601 0.03278,887 Edinburgh Investment Trust 1,052,798 0.05157,862 Edinburgh UK Tracker Investment Trust 363,083 0.02

55,713 Edinburgh US Tracker Investment Trust 299,179 0.01



UK Equity Tracker Portfolio Statement continued

Construction & Materials – 0.31%; 2009 0.35% 967,621 Balfour Beatty 2,583,548 0.12561,240 Carillion 1,676,985 0.08

69,200 Clarke (T) 94,804 –899,200 Costain 218,056 0.01115,845 Galliford Try 364,333 0.02

62,583 Gleeson (MJ) 81,358 –91,059 Keller 569,119 0.0352,381 Kier 503,381 0.02

220,815 Low & Bonar 76,181 –365,440 Marshalls 313,365 0.01

48,541 Morgan Sindall 259,694 0.01271,987 ROK Property Solutions 114,235 0.01

6,855,059 0.31

Electricity – 1.07%; 2009 1.41% 518,601 DRAX 2,132,487 0.10

2,194,037 International Power 7,049,441 0.311,265,573 Scottish & Southern Energy 14,781,893 0.66

23,963,821 1.07

Electronic & Electrical Equipment – 0.40%; 2009 0.34% 370,653 Chloride 679,036 0.03159,953 Domino Printing 512,649 0.02287,940 E2V Technologies 159,087 0.01529,065 Halma 1,233,251 0.06

1,094,638 Invensys 3,373,674 0.14374,808 Laird 464,012 0.02384,016 Morgan Crucible 625,562 0.03

13,201 Oxford Instruments 31,946 –300,015 PV Crystalox Solar 167,408 0.01

53,581 Renishaw 322,826 0.01163,915 Spectris 1,253,950 0.06222,710 TT Electronics 193,758 0.01

9,017,159 0.40

Equity Investment Instruments – 2.62%; 2009 2.69% 938 3i European Technology Investment Trust 9 –

46,000 Aberdeen Asian Smaller Companies Investment Trust 172,960 0.01104,364 Aberdeen Asian Income Fund 137,500 0.01

60,241 Aberdeen New Dawn Investment Trust 375,603 0.02138,608 Aberforth Smaller Companies Investment Trust 738,088 0.03






254,882 JP Morgan Fleming Japan Investment Trust 397,616 0.02145,665 JP Morgan Fleming Mercantile Investment Trust 1,252,719 0.05

55,493 JP Morgan Fleming Mid Cap Investment Trust 205,185 0.0137,699 JP Morgan Fleming Overseas Investment Trust 256,542 0.0183,956 JP Morgan Fleming Russian Securities 414,113 0.02

3,655 JP Morgan Fleming Small Companies Investment Trust 12,866 –116,394 Jupiter European Markets Investment Trust 212,419 0.01

22,156 JZ Capital Partners 56,498 –19,960 Keystone Investment Trust 202,195 0.01

173,180 Law Debenture 471,050 0.0238,275 Lowland Investment Company 231,947 0.01

867 Majedie Investment Trust 1,632 –10,600 Martin Currie Pacific Investment Trust 24,380 –

226,774 Martin Currie Portfolio Investment Trust 257,388 0.01152,608 Merchants Investment Trust 501,165 0.02375,505 Monks Investment Trust 1,031,512 0.04

80,049 Montanaro UK Smaller Companies Investment Trust 178,709 0.01404,893 Morant Wright Japan Income Trust 190,300 0.01

95,113 Murray Income Trust 489,832 0.02131,997 Murray International Trust 982,058 0.04

16,000 MW Tops participating preference shares (GB Line) 155,520 0.0110,400 MW Tops participating preference shares (Eurobond Line) 86,422 –25,823 North Atlantic Smaller Investment Trust 209,425 0.01

171,731 Pacific Assets Investment Trust 175,166 0.0197,000 Pacific Horizon Investment Trust 129,738 0.0122,085 Pantheon International Partners 104,241 –

294,018 Perpetual Income & Growth Investment Trust 618,026 0.03737 Personal Assets Trust 201,570 0.01

187,251 Polar Capital Technology Trust 447,155 0.02220,286 RIT Capital Partners 2,175,324 0.10246,372 Schroder Asia Pacific Fund 419,448 0.02

99,261 Schroder Income Growth Fund 174,699 0.01189,626 Schroder Japan Growth Fund 145,064 0.01328,155 Schroder Oriental Income Fund 396,247 0.02233,838 Schroder UK Growth Fund 246,115 0.01

17,300 Schroder UK Mid & Small Cap Fund 31,919 –195,814 Scottish American Investment Trust 353,934 0.02192,232 Scottish Investment Trust 807,567 0.04387,239 Scottish Mortgage Investment Trust 1,932,323 0.08

14,294 Scottish Oriental Small Companies Trust 56,032 –98,739 Securities Trust of Scotland 90,346 –

4,361 Shires Income Trust 7,403 –




17,912 Edinburgh Worldwide Investment Trust 39,183 –96,842 Electrical & General Investment Trust 344,758 0.0250,613 Electra Investment Trust 658,475 0.0368,235 Euro Investment Trust 350,046 0.02

107,700 F&C Capital & Income Investment Trust 207,592 0.0154,234 F&C Global Small Companies Investment Trust 217,478 0.01

135,481 Fidelity Asian Values Investment Trust 213,044 0.0174,338 Fidelity European Values Investment Trust 763,451 0.0383,791 Fidelity Special Values Investment Trust 438,227 0.0276,980 Finsbury Growth & Income Trust 185,714 0.0172,838 Finsbury Worldwide Pharmaceutical Investment Trust 455,238 0.0298,078 Fleming Japan Smaller Companies Investment Trust 132,160 0.01

971,503 Foreign & Colonial Pacific Investment Trust 2,573,511 0.114,104 Framlington Innovation Growth Investment Trust 11,255 –

40,350 Gartmore European Investment Trust (GB Line) 234,434 0.0111,764 Gartmore Fledgling Investment Trust 45,615 –34,626 Gartmore Global Investment Trust 107,427 –

135,900 Genesis Emerging Markets Investment Trust 542,105 0.02383,552 Glasgow Income Trust 173,557 0.01353,500 Goldman Sachs Dynamic Opportunities 304,010 0.01

84,278 Graphite Enterprise Investment Trust 244,406 0.0110,127 Hansa Trust 'A' non voting shares 72,914 –34,560 Henderson Electric & General Investment Trust 169,862 0.0117,900 Henderson High Income Investment Trust 19,869 –

238,775 Henderson Pacific Investment Trust 359,356 0.02111,319 Henderson Smaller Companies Investment Trust 217,072 0.01131,878 Henderson Far East Income 373,874 0.02121,708 Herald Investment Trust 405,592 0.02

36,852 HG Capital Investment Trust 302,371 0.01523,332 HSBC Infrastructure 613,345 0.03449,119 Impax Environmental Markets Investment Trust 509,750 0.02125,100 Invesco Asia Investment Trust 154,499 0.01

44,600 Invesco English & International Trust 93,772 –107,990 Invesco Income & Growth Investment Trust 180,613 0.01

63,185 JP Morgan Fleming American Investment Trust 436,924 0.02237,922 JP Morgan Fleming Asian Investment Trust 422,787 0.02103,100 JP Morgan Fleming China Investment Trust 136,608 0.01

78,870 JP Morgan Fleming Claverhouse Investment Trust 311,339 0.01156,784 JP Morgan Fleming Emerging Markets Investment Trust 716,503 0.03180,561 JP Morgan Fleming European Investment Trust 295,217 0.01

69,422 JP Morgan Fleming European Fledgling Investment Trust 443,259 0.02174,544 JP Morgan Fleming Indian Investment Trust 635,340 0.03




649,436 Tate & Lyle 2,573,715 0.111,801,974 Unilever 34,399,684 1.54

60,842,910 2.71

Forestry & Paper – 0.08%; 2009 0.06% 521,996 Mondi 1,863,526 0.08

Gas, Water & Multi-Utilities – 2.39%; 2009 3.23% 7,189,762 Centrica 19,397,978 0.873,374,079 National Grid 21,256,698 0.95

552,823 Northumbrian Water 1,429,600 0.06497,432 Pennon 2,559,288 0.11323,875 Severn Trent 3,643,594 0.16987,236 United Utilities 5,291,585 0.24

53,578,743 2.39

General Financial – 1.86%; 2009 1.52% 1,324,966 3i 3,504,535 0.15

864,605 3i Infrastructure 890,543 0.041,571,184 Aberdeen Asset Management 1,943,555 0.09

403,078 Ashmore 902,089 0.04212,773 Bluebay Asset Management 702,151 0.03304,979 Brewin Dolphin 419,651 0.02

57,660 Charles Stanley 138,528 0.0115,100 Charles Taylor Consulting 28,992 –

204,544 Close Bothers 1,412,376 0.06364,417 Collins Stewart 266,024 0.01322,280 Evolution 409,296 0.02695,959 F&C Asset Management 484,387 0.02202,270 Hargreaves Lansdown 590,628 0.03478,575 Helphire 253,645 0.01

1,170,395 Henderson 1,429,052 0.06674,194 ICAP 2,502,608 0.11511,037 IG Group 2,064,589 0.09549,053 Intermediate Capital 1,474,756 0.07365,583 International Personal Finance 804,283 0.04666,518 Investec 2,841,366 0.13383,906 IP Group 218,826 0.01280,875 London Stock Exchange 1,799,004 0.08

2,441,743 Man Group 5,782,047 0.25376,641 moneysupermarket.com 274,948 0.01424,242 Paragon 585,030 0.03




49,845 Standard Life Equity Income Trust 128,974 0.014,500 Standard Life European Private Equity Trust 4,500 –

452,696 SVG Capital 632,416 0.0354,568 SVM UK Active Fund 77,487 –85,621 Temple Bar Investment Trust 625,033 0.03

470,303 Templeton Emerging Markets Investment Trust 2,283,321 0.10316,200 Thames River Multi Hedge 384,183 0.02171,905 Throgmorton Investment Trust 207,575 0.01

93,790 TR European Growth Investment Trust 363,905 0.024,091 Value & Income Investment Trust 6,668 –

302,646 Witan Investment Trust 1,295,325 0.0590,044 Witan Pacific Investment Trust 145,871 0.01

58,633,624 2.62

Fixed Line Telecommunications – 0.95%; 2009 1.08% 10,632,808 BT 14,620,111 0.65

3,735,745 Cable & Wireless 5,312,229 0.24521,385 Colt Telecom 645,996 0.03829,475 KCOM 449,990 0.02

77,014 Telecom Plus 231,042 0.01

21,259,368 0.95

Food & Drug Retailers – 3.01%; 2009 3.56% 1,808,100 Booker 828,110 0.04

147,850 Greggs 615,056 0.033,748,118 Morrison (Wm) Supermarket 10,832,061 0.482,540,021 Sainsbury (J) 8,224,588 0.37

10,971,766 Tesco 46,690,350 2.0984,629 Thorntons 84,629 –

67,274,794 3.01

Food Producers – 2.71%; 2009 2.81% 544,519 Associated British Foods 4,805,380 0.21

1,899,130 Cadbury 15,715,301 0.7068,438 Cranswick 503,019 0.02

188,173 Dairy Crest 635,272 0.03243,955 Devro 337,878 0.02

45,933 Hilton Food Group 91,866 –666,221 Northern Foods 413,723 0.02

3,408,352 Premier Foods 1,098,512 0.0553,712 Robert Wiseman 268,560 0.01




124,007 Mothercare 793,645 0.04285,758 Next 5,618,002 0.26973,300 Pendragon 257,925 0.01420,220 Sports Direct International 401,730 0.02

44,809 Ted Baker 217,548 0.01247,371 Topps Tiles 194,186 0.01222,977 WH Smith 1,111,094 0.05

1,953,198 Woolworths – –

38,234,738 1.71

Health Care Equipment & Services – 0.43%; 2009 0.45% 309,096 Assura 136,002 0.01

87,341 Care UK 358,098 0.0240,182 Consort 144,756 0.01

124,584 Optos 122,092 0.011,271,287 Smith & Nephew 8,047,247 0.34

267,279 Southern Cross Health 407,600 0.0276,600 Synergy Healthcare 472,622 0.02

9,688,417 0.43

Household Goods – 1.93%; 2009 1.98% 88,274 AGA Rangemaster 123,584 0.01

1,371,228 Barratt Development 1,639,989 0.07171,593 Bellway 1,273,220 0.06186,032 Berkeley 1,486,396 0.07189,261 Bovis Homes 750,988 0.03122,389 Headlam 373,898 0.02256,215 McBride 558,549 0.02429,553 Persimmon 1,859,535 0.08

1,007,210 Reckitt Benckiser 32,734,325 1.46437,355 Redrow 572,935 0.03

4,543,562 Taylor Wimpey 1,753,815 0.08

43,127,234 1.93

Industrial Engineering – 0.58%; 2009 0.42% 264,429 Bodycote 458,784 0.02237,227 Charter International 1,651,100 0.07248,378 Fenner 463,722 0.02135,004 Hill & Smith 448,213 0.02454,869 IMI 2,492,682 0.12707,226 Melrose 1,184,604 0.05




188,895 Provident Financial 1,769,946 0.0863,180 Rathbone Brothers 524,394 0.0231,992 Rensburg Sheppards 186,833 0.01

3,317,196 Resolution 2,650,440 0.12233,125 Schroders 2,904,738 0.13

83,982 Schroders non-voting shares 837,301 0.0484,643 SVM Global 206,952 0.01

305,925 Tullett Prebon 939,190 0.04

41,742,703 1.86

General Industrials – 0.63%; 2009 0.60% 8,363 British Polythene 23,918 –

392,099 Cookson 1,682,105 0.081,203,603 REXAM 3,609,605 0.16

142,150 RPC 341,160 0.02558,635 Smith (DS) 606,119 0.03533,124 Smiths 5,331,240 0.23

1,246,716 Tomkins 2,351,306 0.11

13,945,453 0.63

General Retailers – 1.71%; 2009 1.44% 292,174 Brown (N) 657,099 0.03

72,253 Carpetright 662,921 0.03516,087 Carphone Warehouse 987,274 0.04

1,829,032 Debenhams 1,230,024 0.0589,808 Dignity 557,708 0.02

5,151,981 DSG 1,622,874 0.07113,700 Dunelm 408,297 0.02721,620 Findel 239,939 0.01

31,418 French Connection 12,017 –490,206 Game 452,460 0.02298,193 Halfords 1,132,835 0.05602,149 HMV 459,741 0.02

1,204,025 Home Retail 3,079,896 0.146,528,950 Inchcape 1,746,494 0.08

43,700 JD Sports Fashion 251,494 0.01693,800 JJB Sports 147,433 0.01752,624 KESA Electricals 969,380 0.04

3,274,164 Kingfisher 6,951,050 0.3126,858 Laura Ashley 3,223 –

431,679 Lookers 194,256 0.012,262,049 Marks & Spencer 7,874,193 0.35




Media – 2.42%; 2009 2.68% 1,645,817 Aegis 1,973,335 0.09

96,210 Bloomsbury Publishing 128,200 0.011,807,620 British Sky Broadcasting 9,643,653 0.43

18,298 Centaur Media 9,515 –76,415 Chime Communications 158,561 0.0155,629 Chrysalis 54,516 –

386,987 Daily Mail & General Trust 'A' Shares 1,747,246 0.0850,675 Euromoney 238,325 0.0143,346 Future 8,236 –

845,467 Informa 2,790,041 0.12363,400 ITE 491,499 0.02

5,527,732 ITV 3,120,405 0.14959,692 Johnston Press 261,516 0.01181,700 Mecom 266,191 0.01

1,106,168 Pearson 9,855,957 0.441,735,766 Reed Elsevier 8,677,094 0.39

167,069 Rightmove 882,960 0.041,913 STV 937 –

369,044 Trinity Mirror 559,471 0.02346,449 United Business Media 1,480,723 0.07107,668 UTV 107,668 –

17,300 Wilmington 21,841 –1,791,643 WPP 10,418,404 0.483,348,927 Yell 1,220,684 0.05

54,116,978 2.42

Mining – 10.54%; 2009 6.19% 1,855,420 Anglo American 43,082,852 1.92

157,100 Anglo Pacific 377,040 0.02542,184 Antofagasta 4,765,797 0.21642,269 Aquarius Platinum 2,391,810 0.11

3,087,131 BHP Billiton 57,605,863 2.58318,400 Central Rand 50,944 –531,200 Eurasian Natural Resources 4,828,608 0.23251,021 Ferrexpo 513,840 0.02295,800 Fresnillo 1,986,297 0.09196,110 Gem Diamonds 460,859 0.02174,769 Hochschild 472,750 0.02311,449 Kazakhmys 3,796,563 0.17275,824 Lonmin 4,984,140 0.22

72,700 Namakwa Diamonds 29,989 –




122,612 Rotork 1,552,268 0.07585,048 Senior 489,978 0.02131,304 Severfield-Rowen 284,601 0.01107,636 Spirax-Sarco 1,348,679 0.06

62,756 Vitec 254,789 0.01298,509 Weir 2,316,430 0.11

12,945,850 0.58

Industrial Metals – 0.04%; 2009 0.02% 611,300 International Ferro Metals 189,503 0.01197,946 Talvivaara 699,541 0.03

889,044 0.04

Industrial Transportation – 0.16%; 2009 0.11% 598,241 BBA 987,696 0.05

10,044 Braemar Shipping Services 44,018 –1,471 UK Mail Group 4,534 –

31,382 Clarkson 240,229 0.0173,369 Fisher (J) 326,859 0.0164,820 Forth Ports 722,743 0.03

188,499 Northgate 408,854 0.02370,335 Stobart 470,325 0.02177,884 Wincanton 388,232 0.02

3,593,490 0.16

Leisure Goods – 0.05%; 2009 0.02% 104,655 Hornby 146,779 0.01423,830 Pace Micro Technology 799,767 0.03420,400 Photo-Me 137,681 0.01

1,084,227 0.05

Life Insurance – 2.49%; 2009 2.60% 3,793,988 Aviva 14,739,643 0.66

222,099 Chesnara 460,300 0.0240,000 Hansard 67,400 –

8,059,589 Legal & General 6,113,198 0.277,312,693 Old Mutual 7,612,513 0.343,478,530 Prudential 20,088,511 0.90

272,649 St James Place 684,349 0.033,042,786 Standard Life 5,957,775 0.27

55,723,689 2.49




217,100 Salamander Energy 575,532 0.03106,570 SOCO 1,534,608 0.07

1,104,589 Tullow Oil 12,746,957 0.57

384,771,659 17.20

Oil Equipment, Services & Distribution – 0.49%; 2009 0.43% 455,808 Amec 3,450,467 0.15187,484 Hunting 1,019,913 0.05562,708 John Wood Group 1,914,895 0.09213,200 Lamprell 408,918 0.02355,919 Petrofac 3,434,618 0.15141,487 Wellstream 704,605 0.03

10,933,416 0.49

Personal Goods – 0.31%; 2009 0.22% 638,939 Burberry 3,929,475 0.18304,735 PZ Cussons 748,734 0.03300,049 SSL 2,325,380 0.10

7,003,589 0.31

Pharmaceuticals and Biotechnology – 7.24%; 2009 9.51% 906,192 Antisoma 301,309 0.01363,999 Ark Therapeutics 50,960 –

2,041,467 Astrazeneca 59,416,896 2.6570,190 Axis-Shield 282,866 0.01

362,865 BTG 640,094 0.0393,061 Dechra Pharmaceuticals 446,134 0.0286,600 Genus 588,880 0.03

7,318,855 GlaxoSmithKline 89,033,870 3.99202,531 Hikma Pharmaceuticals 1,108,857 0.05915,784 Oxford Biomedical 105,315 –261,600 Prostrakan 290,376 0.01331,355 Renovo 98,578 –784,439 Shire (Jersey Registered) 9,695,666 0.43468,500 Vectura 323,265 0.01

162,383,066 7.24

Real Estate – 1.59%; 2009 1.16% 358,299 Alpha Pyrenees 110,177 –180,565 Big Yellow 567,696 0.03

1,191,673 British Land 5,219,528 0.23543,672 Capital & Regional 201,159 0.01




272,843 Petropavlovsk 2,428,303 0.11128,997 Randgold Resources 5,665,548 0.25

2,122,725 Rio Tinto 65,783,248 2.94447,690 UK Coal 274,210 0.01197,143 Vedanta Resources 4,784,661 0.21

3,064,905 Xstrata 31,599,171 1.41

235,882,493 10.54

Mobile Telecommunications – 4.61%; 2009 6.01% 627,976 Inmarsat 4,289,076 0.19

73,456,900 Vodafone 98,836,257 4.42

103,125,333 4.61

Non-Life Insurance – 0.89%; 2009 1.06% 272,765 Admiral 3,082,245 0.14701,998 Amlin 2,736,388 0.12757,522 Beazley 793,126 0.04448,333 Brit Insurance 839,279 0.04495,256 Catlin 1,682,385 0.08939,655 Chaucer 429,892 0.02

32,102 Hardy Underwriting 89,003 –531,450 Hiscox 1,820,216 0.08227,666 Jardine Lloyd Thompson 1,067,981 0.05259,400 Lancashire 1,159,518 0.05107,661 Novae 320,830 0.01

4,633,156 Royal & Sun Alliance 5,972,138 0.26

19,993,001 0.89

Oil & Gas Producers – 17.20%; 2009 20.88% 4,715,234 BG 54,625,985 2.44

26,292,253 BP 154,282,940 6.89215,500 Cadogan Petroleum 31,248 –

1,985,880 Cairn Energy 6,454,110 0.29129,684 Dana Petroleum 1,353,901 0.06485,154 Fortune Oil 34,349 –100,300 Hardy Oil & Gas 236,959 0.01303,100 Heritage Oil 1,504,892 0.07166,675 JKX Oil & Gas 445,356 0.02

84,551 Melrose Resources 258,303 0.01162,902 Premier Oil 1,692,552 0.08

4,929,334 Royal Dutch Shell 'A' Shares 85,893,644 3.843,771,687 Royal Dutch Shell 'B' Shares 63,100,323 2.82




Software & Computer Services – 1.01%; 2009 0.78% 371,428 Alphameric 96,571 –

92,240 Alterian 136,515 0.01427,831 Anite 137,976 0.01345,469 Autonomy 5,372,043 0.24

95,881 Aveva 1,047,021 0.05167,936 Computacenter 498,098 0.02

2,408,083 Dimension Data 1,866,264 0.0852,142 Fidessa 649,168 0.03

1,302,794 Inovation 175,877 0.01433,701 Intec Telecom System 513,936 0.02

90,970 Kewill 94,609 –123,421 Kofax 218,764 0.01

2,271,776 LogicaCMG 2,669,337 0.12286,406 Micro Focus 1,466,399 0.07777,303 Misys 1,671,979 0.07

40,490 NCC Group 168,843 0.01116,603 Phoenix 317,160 0.01136,859 RM 238,135 0.01

1,799,267 Sage 4,248,069 0.19112,067 SDL 532,318 0.02146,000 Telecity 572,612 0.03

22,691,694 1.01

Support Services – 3.03%; 2009 2.87% 384,871 Aggreko 3,479,234 0.16715,498 Ashtead 611,751 0.03142,854 Atkins WS 849,981 0.04325,120 Babcock International 1,823,923 0.08125,774 Brammer 162,563 0.01181,098 BSS 459,989 0.02451,139 Bunzl 2,817,363 0.13855,803 Capita 6,191,735 0.27

44,822 Communisis 5,827 –191,322 Connaught 609,361 0.03241,476 Davis Service 977,978 0.04139,905 De La Rue 1,357,079 0.06169,565 Diploma 302,674 0.01266,811 Eaga 373,535 0.02616,887 Electrocomponents 1,091,273 0.05

1,402,883 Experian 8,396,255 0.38197,503 Fiberweb 122,946 0.01




36,488 CLS 164,196 0.017,327 Daejan 194,971 0.01

142,974 Derwent Valley 1,872,959 0.08120,937 Development Securities 333,786 0.01148,400 DTZ 117,236 0.01389,476 F&C Commercial Property Investment Trust 341,960 0.02442,346 Grainger 575,050 0.03444,396 Great Portland Estates 1,250,086 0.06958,401 Hammerson 3,632,340 0.16152,161 Helical Bar 477,786 0.02584,919 ING UK Real Estate Investment Trust 298,309 0.01

24,700 ING Global Real Estate Securities 17,414 –624,105 Invista 268,365 0.01224,917 ISIS Property Investment Trust 201,301 0.01278,467 ISIS Property 2 Investment Trust 231,128 0.01

1,039,446 Land Securities 6,657,652 0.30819,314 Liberty International 3,744,265 0.17

17,909 LSL Property Services 50,324 –48,282 McKay Securities 70,492 –64,315 Medicx Fund 46,307 –28,000 Minerva 20,020 –34,800 Mucklow (A&J) 103,704 –11,354 MWB 4,655 –93,431 Primary Health 270,950 0.01

735,604 Quintain Estate & Development 428,489 0.02331,594 Real Estate Opportunities 56,371 –206,720 Safestore 282,173 0.01187,042 Savills 591,053 0.03

1,009,592 Segro 3,168,100 0.15320,273 Shaftesbury 1,218,959 0.05220,034 St Modwen Properties 416,744 0.02321,054 Standard Life Investment Property Trust 191,027 0.01

10,684 Town Centre Securities 15,198 –365,989 TR Property Investment Trust 549,715 0.02174,600 TR Property Investment Trust Sigma 117,419 0.01455,000 UK Commercial Property Trust 358,540 0.02226,208 Unite 648,086 0.03

1,647,388 Wichford 153,042 0.011,478,892 Workspace 321,659 0.01

35,560,391 1.59




257,724 CSR 1,159,758 0.05331,252 Imagination Technology 877,818 0.04140,602 Psion 124,433 0.01960,689 Spirent 1,059,640 0.05170,786 Wolfson Microelectronics 213,483 0.01

7,165,318 0.32

Tobacco – 3.87%; 2009 4.91% 2,793,669 British American Tobacco 57,842,917 2.581,428,889 Imperial Tobacco 28,877,847 1.29

86,720,764 3.87

Travel & Leisure – 2.59%; 2009 2.30% 147,265 888.com 160,961 0.01

11,600 Air Partner 49,677 –205,621 Arena Leisure 54,490 –281,150 Arriva 1,372,012 0.06694,945 Avis Europe 184,160 0.01

1,648,960 British Airways 3,400,156 0.15292,218 Carnival 6,645,037 0.30169,000 Cineworld 261,950 0.01

2,641,361 Compass 11,310,308 0.51172,200 Domino's Pizza 548,457 0.02448,830 easyJet 1,750,437 0.08722,061 Enterprise Inns 857,808 0.04684,618 Firstgroup 2,528,294 0.11

36,016 Fuller, Smith & Turner 'A' Shares 183,862 0.0160,616 Go Ahead 818,316 0.04

305,438 Greene King 1,360,115 0.06104,937 Holidaybreak 273,099 0.01393,454 InterContinental Hotels 3,543,053 0.16197,246 (JD) Wetherspoon 899,047 0.04

1,282,462 Ladbrokes 2,016,030 0.09149,921 Luminar 58,844 –810,375 Marston's 712,725 0.03218,772 Millennium & Copthorne 835,709 0.04578,433 Mitchells & Butler 1,605,152 0.07721,966 National Express 1,500,967 0.07434,222 PartyGaming 1,219,730 0.05912,853 Punch Taverns 764,514 0.03569,455 Rank 521,051 0.02278,600 Restaurant Group 568,065 0.03




292,264 Filtrona 518,476 0.02900,548 Galiform 798,336 0.04

1,936,269 Group 4 Securicor 4,898,761 0.211,974,507 Hays 2,185,779 0.10

436,388 Hogg Robinson 148,372 0.0192,660 Homeserve 1,507,578 0.0742,360 Hyder Consulting 85,250 –

177,640 Interserve 376,242 0.02216,018 Intertek 2,611,658 0.12178,778 Lavendon 123,357 0.01108,500 Mears 292,950 0.01

64,149 Menzies (John) 200,145 0.01343,071 MGT Consulting 65,183 –457,638 Michael Page 1,767,856 0.08494,130 Mitie 1,128,099 0.05164,530 Mouchel Parkman 406,389 0.02

79,927 Paypoint 321,307 0.01517,624 Premier Farnell 928,100 0.04

1,014,426 Regus 905,882 0.042,489,017 Rentokil Initial 2,882,282 0.13

94,186 Ricardo 273,375 0.01110,015 Robert Walters 242,033 0.01302,848 RPS 604,485 0.03135,173 Scott Wilson 132,470 0.01672,318 Serco 3,361,590 0.15558,896 Shanks 712,592 0.03839,712 SIG 959,791 0.04376,376 Smiths News 446,006 0.02724,440 Speedy Hire 210,088 0.01511,700 Spice 260,967 0.01

40,943 St Ives 23,747 –129,798 SThree 395,624 0.02295,324 Travis Perkins 2,175,061 0.10

66,511 Tribal 53,874 –388,131 Wolseley 5,391,140 0.23

95,000 WSP Group 253,650 0.01250,966 Xchanging 478,090 0.02

67,760,052 3.03

Technology Hardware & Equipment – 0.32%; 2009 0.17% 1,795,118 ARM 3,482,529 0.15

452,342 BATM Advanced Communications 247,657 0.01


UK Equity Tracker Portfolio TurnoverUK Equity Tracker Portfolio Statement continued



1,023,023 Stagecoach 1,800,520 0.081,277,965 Thomas Cook 2,906,092 0.13

768,580 TUI 1,995,234 0.0912,800 Wembley 1,280 –

241,575 Whitbread 3,401,375 0.15990,884 William Hill 1,980,775 0.09

58,089,302 2.59

DERIVATIVES – (0.09)%; 2009 (0.03)%

Forward Currency Contracts – 0.00%; 2009 (0.01)%

Futures – (0.09)%; 2009 (0.02)% 1,134 FTSE 100 March 2010 Futures (2,048,218) (0.09)

Investment Assets 2,178,117,428 97.30Net other assets 60,356,241 2.70

Total net assets £2,238,473,670 100.00


*These securities are classifed as unapproved.







UK Equity Tracker Balance Sheetat 31 January 2010

31.1.2010 31.1.2009Notes £ £

Assets:Investment assets 2,180,165,646 1,402,870,224 – Debtors 7 13,591,587 7,599,347 – Cash and bank balances 8 47,664,786 38,543,058

Total other assets 61,256,373 46,142,405 Total assets 2,241,422,019 1,449,012,629

Liabilities:Investment liabilities (2,048,218) (353,881) – Creditors 9 (900,131) (26,019,854)


Net assets attributable to unitholders £2,238,473,670 £1,422,638,894


31.1.2010 31.1.2009Notes £ £ £ £


during the year 2 462,779,418 (573,186,815) Revenue 3 69,915,121 71,117,705 Expenses 4 (4,027,970) (3,580,651) Finance costs: Interest 6 (1,560) –





31.1.2010 31.1.2009£ £ £ £

Opening net assets attributableto unitholders 1,422,638,894 1,765,868,906





Closing net assets attributableto unitholders £2,238,473,670 £1,422,638,894

Comparative figures have been restated for the presentation changes following adoption of the Statement of Recommended Practice (“theSORP”) for Authorised Funds issued by the Investment Management Association (“IMA”) in November 2008 (see Accounting Policies).

UK Equity Tracker Statement of Change in Net AssetsAttributable to Unitholders for the year ended 31 January 2010

UK Equity Tracker Statement of Total Return for the year ended 31 January 2010



31.1.2010 31.1.2009£ £

Corporation tax – 496,953 Overseas tax 752,990 541,446 Double taxation relief – (496,953) Corporation Tax prior year adjustment (363,642) –


Deferred tax charge for the year [see note 5(c)] – (12,852)



31.1.2010 31.1.2009£ £


Corporation tax at 20% (2009: 20%) 13,177,118 13,507,411 Effects of:Excess expenses for which no tax relief taken 17,717 –Movement in revenue accruals taxable on receipt 7,239 5,613 Franked investment revenue at 20% (12,581,734) (13,016,071) Overseas tax 752,990 541,446 Non taxable overseas dividends (620,340) –Adjustment in respect of prior periods (363,642) –Double Tax Relief – (496,953)



£ £

Opening deferred tax balance – 12,852 Deferred tax charge for the year [see note 5(a)] – (12,852)

Closing deferred tax balance – –

As at 31 January 2010 the Fund had surplus management expenses of £88,588 (prior year: £0). It is unlikely that the Fund will generatesufficient taxable profits in the future to utilise these expenses and therefore a deferred tax asset of £17,718 (prior year: £0) has notbeen recognised.

UK Equity Tracker Notes to Financial Statements at 31 January 2010



£ £

The net capital gains/(losses) on investments comprise:Gains/(losses) on non-derivative securities 451,800,381 (562,033,707) Gains/(losses) on derivative contracts 11,024,082 (11,055,617) Losses on forward currency contracts (76,720) (188,276) Other currency gains 55,942 104,970 Transaction costs (24,267) (14,185)


3. Revenue31.1.2010 31.1.2009

£ £

UK dividends 62,908,669 65,080,357 Unfranked dividends from UK companies 947,984 863,236 Overseas dividends 5,997,817 4,095,547 Interest from UK bank deposits 60,651 1,078,565

Total revenue £69,915,121 £71,117,705

4. Expenses31.1.2010 31.1.2009

£ £

Payable to the Manager or associates of the Manager:– Manager's service charge 3,761,106 3,298,731 – Registrar's fees 162 150 – Reclaim of VAT (11) –

3,761,257 3,298,881

Payable to the Trustee or associates of the Trustee: – Trustee's fees 212,262 197,782

212,262 197,782

Other expenses: – Safe custody fees 44,474 73,648 – Audit fee 8,526 8,930 – Risk monitoring fees 1,380 1,410 – Legal & professional fees 71 –

54,451 83,988

Total expenses £4,027,970 £3,580,651


9. Creditors31.1.2010 31.1.2009

£ £

Purchases awaiting settlement – 25,434,993 Accrued Manager's service charge 785,208 518,050 Accrued Registrar's fee 13 27 Accrued Trustee's fee 45,310 16,188 Accrued Safe custody fees 41,562 27,481 Accrued Audit fee 8,716 8,930 Transaction costs 19,322 14,185

Total creditors £900,131 £26,019,854

10. Derivatives and Other Financial Instruments(a) The Fund’s financial instruments, comprise securities and other investments, cash balance and


The Fund’s property is invested with the aim of achieving the investment objective of achievingcapital growth by tracking closely the performance of the FTSE All Share Index by investing incompanies in the Index.


Risk Impact of risk


The Fund is accounted for in Sterling and holds financial assets andfinancial liabilities denominated in Euro, US dollar and UK sterling.

To manage these risks, the Fund has entered into forwardcurrency transactions during the year. As at the balance sheetdate, no forward currency contracts have been entered into.

Market price risk The valuation of the Fund’s investments are calculated withreference to market prices quoted by financial agencies andbrokers. Movements to those market prices may materially affectthe value of the Fund’s investments, which may move down aswell as up. The Manager undertakes research to minimise theimpact of such movements against the Fund’s investment objective.

UK Equity Tracker Notes to Financial Statements continued


31.1.2010 31.1.2009£ £

Interim 39,276,203 39,315,400 Final 28,937,592 28,774,735

68,213,795 68,090,135 Add: Amounts deducted on cancellation of units 3,256,628 4,706,224 Less: Amounts received on creation of units (5,974,180) (5,787,899)

Net distribution for the year 65,496,243 67,008,460 Finance costs: Interest 1,560 –



7. Debtors31.1.2010 31.1.2009

£ £

Sales awaiting settlement 1,890 –Amounts receivable for creation of units 8,814,390 3,851,608 Corporation tax recoverable 387,866 24,224 Income tax recoverable 288,983 151,213 Overseas tax recoverable 96,116 115,363 Accrued revenue 4,002,342 3,456,939

Total debtors £13,591,587 £7,599,347


£ £







exposures31.1.2010 31.1.2010 31.1.2010

£ £ £

Euro – 627,575 627,575 UK sterling 47,588,700 2,189,818,514 2,237,407,214 US dollar 76,086 362,795 438,881

Total £47,664,786 £2,190,808,884 £2,238,473,670




exposures31.1.2009 31.1.2009 31.1.2009

£ £ £

Euro 13,451 (986,303) (972,852) UK sterling 38,508,656 1,389,603,569 1,428,112,225 US dollar 20,951 (4,521,430) (4,500,479)

Total £38,543,058 £1,384,095,836 £1,422,638,894

(c) Interest Rate Risk Profile of Financial Assets and LiabilitiesThe Interest Rate Risk Profile of Financial Assets and Liabilities at the balance sheet date was as follows :



Euro – – 627,575 627,575 UK sterling 47,588,700 – 2,192,766,863 2,240,355,563 US dollar 76,086 – 362,795 438,881

Total £47,664,786 £0 £2,193,757,233 £2,241,422,019


Risk Impact of risk



The Fund invests primarily in companies incorporated in theUnited Kingdom, which is typically considered to be a territoryoperating with high levels of liquidity. From time to time, however,market liquidity may be affected by economic events.

All stocks are valued daily. Stocks identified as illiquid arereviewed for pricing accuracy as the need arises and on a formalmonthly basis by the BlackRock Pricing Committee.





13. Related Party TransactionsBlackRock Fund Managers Limited, as Manager and Registrar of the Fund, together with The RoyalBank of Scotland plc, as Trustee, are regarded as related parties to the Fund. The Manager acts as either principal or agent for the Trustee in respect of all transactions of units of the Fund. Theaggregate monies received through creation and paid through cancellation are disclosed in theStatement of Change in Net Assets Attributable to Unitholders. Any amounts due to or from theManager at the period end are disclosed in Notes 7 and 8.

Management fees and registration fees paid to BlackRock Fund Managers Limited and fees paid tothe Trustees are shown in Note 4. The balances due at the period end in respect of these fees areshown in Note 8.

The Fund’s investments in other BlackRock related products were entered into in the normal courseof business and on normal commercial terms.

The aggregate value of these transactions for BlackRock Smaller Companies Trust, BlackrockCommodities Income Investment Trust, Blackrock Greater Europe Investment Trust, Blackrock LatinAmerican Investment Trust, Blackrock New Energy Technology Trust and Blackrock World MiningTrust holdings held by the Fund at the year end are shown on the Portfolio Statement from page 212to page 229.

At the balance sheet date Nutraco Nominees Limited held 1,437,278,150 units (71%) of the total unitsin the Fund. As Nutraco Nominees Limited is a material unitholder in the Fund, it is regarded as arelated party in accordance with FRS8 ‘Related Party Disclosures’.



31.1.2010 31.1.2010 31.1.2009 31.1.2009£ £ £ £

Purchases in period/year before transaction costs 486,853,609 461,957,098

Commissions and other costs (including stamp duty) 2,019,201 3,040,047

Total purchase costs 2,019,201 3,040,047





15. Non Adjusting Post Balance Sheet Event Since the last business day in the accounting period, the Fund’s quoted mid price has risen onAccumulation Units from 110.3p to 120.3p as at 15 March 2010, a rise of 9.07%.


£ £ £

UK sterling – (2,948,349) (2,948,349)

Total £0 £(2,948,349) £(2,948,349)




Euro 13,451 – 1,572,624 1,586,075 UK sterling 38,508,656 – 1,410,621,042 1,449,129,698 US dollar 20,951 – 357,884 378,835

Total £38,543,058 £0 £1,412,551,550 £1,451,094,608



Euro – (2,558,927) (2,558,927) UK sterling – (21,017,473) (21,017,473) US dollar – (4,879,314) (4,879,314)

Total £0 £(28,455,714) £(28,455,714)

There are no material amounts of non-interest bearing financial assets, other than equities, which do not havematurity dates.



(d) Fair Value of Financial Assets and Financial LiabilitiesThere is no material difference between the value of the financial assets and liabilities, as shownin the balance sheet, and their fair value shown.





BlackRock Collective Investment Funds is an authorised unit trust Scheme under Section 243 of theFinancial Services and Markets Act 2000 and was established as a UCITS retail Scheme under theFinancial Services Authority’s Collective Investment Schemes Sourcebook, (“the Sourcebook”).

Stamp Duty Reserve TaxSet out below is a brief summary of how stamp duty reserve tax (‘SDRT’) affects unitholders and potentialunitholders in any of our authorised unit trusts.

SDRT is levied on dealings in units in unit trust Schemes. The Trustee is liable for a SDRT charge of 0.5%on the value of any units surrendered in a one week period. This charge may be reduced if the number ofunits surrendered exceeds the number of units issued during a two week period or if there are ‘exempt’assets in the Scheme.

The Manager has the power to make a charge on unitholders as a provision against SDRT for which theTrustee may become liable (the ‘SDRT provision’). The SDRT provision, where levied, has the effect ofincreasing the acquisition cost of units, or decreasing the redemption proceeds (as appropriate).

The Manager’s general policy in relation to its authorised unit trusts is not to impose a SDRT provisionwhen units are created, issued, cancelled or redeemed with the result that any SDRT payable in respectof any surrender of units will be paid by the Trustee out of the property of the relevant unit trust. However,the Manager reserves the right to require the payment of a SDRT provision whenever it considers thatsuch imposition is fair to all unitholders and potential unitholders. The Manager will charge a SDRTprovision in respect of non pro-rata in-specie redemptions. The Manager may impose a SDRT provisionon large deals even if no SDRT provision is imposed on smaller deals, or which is larger than thatimposed on smaller deals. A ‘large deal’ is a transaction (or series of transactions in one dealing period)by any person to buy, sell or exchange units at a total value of £15,000 or more.

If a unitholder transfers units to a third party this may be subject to SDRT. In these circumstances theManager will not register the transfer unless the requisite SDRT (if any) has been paid.

Authorised StatusUK Equity Tracker Distribution Table for the year ended 31 January 2010









Report of the Auditors

Independent Auditors’ Report to the Unitholders of the BlackRock Collective InvestmentFunds (“the Fund”)We have audited the Fund’s financial statements for the year ended 31 January 2010 which comprise the Aggregated Statement of Total Return, Aggregated Statement of Change in Unitholders Net Assets,Aggregated Balance Sheet and related notes 1 to 15 together with the Statement of Total Return,Statement of Change in Net Assets Attributable to Unitholders’, Balance Sheet, related notes and theDistribution Tables for each sub-fund. These financial statements have been prepared under theaccounting policies set out therein.

This report is made solely to the unitholders of the Fund, as a body, pursuant to Paragraph 4.5.12 of therules of the Collective Investment Schemes Sourcebook of the Financial Services Authority. Our auditwork has been undertaken so that we might state to the unitholders those matters we are required tostate to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Fund and the unitholders as a body, forour audit work, for this report, or for the opinions we have formed.

Respective responsibilities of Manager, Trustee and AuditorsThe Manager is responsible for preparing the Annual Report and the financial statements in accordancewith the rules of the Collective Investment Schemes Sourcebook of the Financial Services Authority, theTrust Deed, and Accounting Standards (United Kingdom Generally Accepted Accounting Practice) are setout in the Statement of Managers Responsibilities in relation to the financial statements. The Trustee isrequired to take reasonable care to ensure compliance by the Manager with all relevant requirements.

Our responsibility is to audit the financial statements in accordance with UK legal and regulatoryrequirements and International Standards on Auditing (UK and Ireland).

We report to you our opinion as to whether the financial statements give a true and fair view and areproperly prepared in accordance with the Statement of Recommended Practice relating to AuthorisedFunds, the rules of the Collective Investment Schemes Sourcebook of the Financial Services Authority,and the Trust Deed. We also report to you whether, in our opinion, the Report of the Manager isconsistent with the financial statements, whether the Manager has not kept proper accounting recordsfor the Fund or sub-funds or whether the financial statements are not in agreement with those records,and whether we have received all the information and explanations which, to the best of our knowledgeand belief, we require for our audit.

We read other information contained in the Annual Report and consider whether it is consistent with theaudited financial statements. This other information comprises only About the Fund Managers, theInvestment Objective and Policy for each of the sub-funds, the Performance Table for each of the sub-funds, the Investment Report for each of the sub-funds, the Performance Record for each of the sub-funds, the Portfolio Statement for each of the sub-funds, the Portfolio Turnover for each of the sub-funds,Authorised Status, Stamp Duty Reserve Tax, Statement of Manager’s and Trustee’s Responsibilities andthe Report of the Trustee. We consider the implications for our report if we become aware of any apparentmisstatements or material inconsistencies with the financial statements. Our responsibilities do notextend to any other information.

Statement of Manager’s and Trustee’s Responsibilities

The Manager is required by the rules of the Sourcebook to prepare the financial statements for eachfinancial year. These financial statements must be prepared in accordance with applicable accountingstandards to give a true and fair view of the state of affairs of the Fund at the year end and of the incomefor the year.

The financial statements should comply with the disclosure requirements of the Statement ofRecommended Practice for Authorised Funds issued by the IMA (‘the SORP’) and must comply with anyrelevant provisions of the Trust Deed.

The Manager is responsible for keeping such accounting records as are necessary to enable it to ensurethat the financial statements comply with the Sourcebook, the SORP and the Trust Deed.

The Trustee is responsible for the safekeeping of all the property of the Fund (other than tangiblemoveable property) which is entrusted to it and for the collection of income that arises from that property.

It is the duty of the Trustee to take reasonable care to ensure that the Fund is managed in accordancewith the Sourcebook, the Fund’s Trust Deed and Prospectus, in relation to the pricing of, and dealings in,units in the Fund; the application of income of the Fund; and the investment and borrowing powers of the Fund.

Report of the TrusteeHaving carried out such procedures as we considered necessary to discharge our responsibilities asTrustee of the Fund, it is our opinion, based on the information available to us and the explanationsprovided, that, in all material respects, the Manager:

(i) has carried out the issue, sale, redemption and cancellation, and calculation of the price of the Fund’sunits and the application of the Fund’s income in accordance with the Sourcebook, the Trust Deed andProspectus, and

(ii) has observed the investment and borrowing powers and restrictions applicable to the Fund.

The Royal Bank of Scotland plc EdinburghTrustee and Depositary Services 23 March 2010


Notes

Basis of Audit OpinionWe conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued bythe Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to theamounts and disclosures in the financial statements. It also includes an assessment of the significantestimates and judgements made by the Manager in the preparation of the financial statements, and ofwhether the accounting policies are appropriate to the Fund’s circumstances, consistently applied andadequately disclosed.

We planned and performed our audit so as to obtain all the information and explanations which weconsidered necessary in order to provide us with sufficient evidence to give reasonable assurance that thefinancial statements are free from material misstatement, whether caused by fraud or other irregularityor error. In forming our opinion we also evaluated the overall adequacy of the presentation of informationin the financial statements.

OpinionIn our opinion;

� the financial statements give a true and fair view, in accordance with United Kingdom GenerallyAccepted Accounting Practice, of the financial position of the Fund and of its sub-funds as at 31 January 2010 and of the net revenue and the net gains on the scheme property of the Fund and of its sub-funds for the year then ended;

� the financial statements have been properly prepared in accordance with the Statement ofRecommended Practice relating to Authorised Funds, the rules of the Collective Investment Schemes Sourcebook of the Financial Services Authority and the Trust Deed;

� the report of the Manager is consistent with the financial statements;

� there is nothing to indicate that proper accounting records have not been kept or that the financialstatements are not in agreement with those records; and

� we have received all the information and explanations which, to the best of our knowledge and belief,we require for our audit.

Ernst & Young LLP EdinburghRegistered Auditor 23 March 2010

Report of the Auditors continiued

Manager & RegistrarBlackRock Fund Managers Limited33 King William Street, London EC4R 9ASTelephone: 020 7743 3000 Dealing and Investor Services: 0800 44 55 22

Member of the Investment Management Association and authorised and regulated by the FinancialServices Authority.

Directors of the ManagerG D Bamping N C D Hall A C Hoctor-Duncan K R Ironmonger (appointed 5 December 2008)S McLaughlin C C Prideaux A J Stenning E E Tracey

Trustee The Royal Bank of Scotland plcTrustee and Depositary ServicesThe Broadstone, 50 South Gyle Crescent, Edinburgh EH12 9UZ

Authorised and regulated by the Financial Services Authority.

Investment ManagerBlackRock (Luxembourg) S.A.6D route de Trèves, L-2633 Senningerberg, Grand-Duchy of Luxembourg

Incorporated in Luxembourg and regulated by the Commission de Surveillance du Secteur Financier(CSSF).

AuditorsErnst & Young LLP Ten George Street, Edinburgh EH2 2DZ

As of 1 July 2009 BlackRock (Channel Islands) Limited has retired as Investment Manager and BlackRock(Luxembourg) S.A. has been appointed in this capacity. There is no change to the Investment Advisersresponsible for the day-to-day investment management of each Fund. In addition, BlackRock (Channel Islands) Limited are retained as Principal Distributor in respect of the Fund.

BlackRock’s proxy voting agent is ISS (Institutional Shareholder Services).

This Report relates to the packaged products of, and is issued by:BlackRock Fund Managers Limited33 King William Street, London EC4R 9ASTelephone: 020 7743 3000Dealing and Investor Services: 0800 44 55 22blackrock.co.uk

For your protection, telephone calls are usually recorded.

Notes


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