iShares ETFs

Matti Tammi & Maarja Vaikla Q2 2017

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Agenda

What is an ETF?

Growth and evolution of the ETF market

Key areas of consideration for ETF selection

Applications of ETFs: How can you use ETFs in your portfolio?

Practical session: How do you buy ETFs?

220170426-147781-403477

3

Create a better financial future for our clients by building the most

respected investment and risk manager in the world

BlackRock at a glance

• Established in 1988

• NYSE: BLK

• $5.15 trillion assets under management

• More than 12,000 employees

• More than 1,800 investment professionals**

• Offices in over 30 countries

• 25 primary investment centers globally**

• Clients in over 100 countries

• Over 800 iShares® ETFs

• Through BlackRock Solutions, the Firm provides risk management

and enterprise investment services for over 200 clients

• Financial Markets Advisory business managed or advised

on over $8 trillion in asset and derivative portfolios

• Transition Management team partners with clients to save

costs and reduce risks when changing investment exposures

BlackRock facts*

BlackRock Mission Statement

$5.15 trillion managed

across asset classes

Active Equity275 bn

Passive Equity

2382 bn

Passive Fixed Income820 bn

Active Fixed Income752 bn

Cash Management

404 bn

Multi-Asset395 bn

Alternatives117 bn

Advisory3 bn

*As 12/31/2016

**As of 9/30/2016

As of 12/31/20161Includes commodity and currency mandates

FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS ONLY | EMEAiS-5461 20170426-147781-403477

Intro to ETFs – What is an ETF and Why ETFs?

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Structure of an ETF

ETFs seek to deliver the performance of a chosen index.

They typically do this by holding the index constituent stocks at their index weights, or a

representative sample (This is called physical replication)

References to the names and logos of each company mentioned is merely for explaining the investment strategy and should not be constructed as investment advice or investment

recommendation of those companies.

INDEX

Fund

manager

purchases

securities

to

represent

the index

Exchange

Traded

Fund

(eg. MSCI World, S&P 500,

OMX Copenhagen 20)

520170426-147781-403477

What is an ETF? Two great investment ideas brought together

DiversifiedTradable

during the

day

Diversified

funds that

trade like

stocks

ETFs

StockLike a

Mutual Fund

Like a stock

Trading flexibility intraday on the exchange

Options frequently available

Like an index fund

Constructed to track benchmark indexes

Low expense ratios

What sets ETFs apart?

The creation/redemption process enables the unique benefits of ETFs such as liquid access

Familiar ground…best of both worlds Two great investment ideas brought together

With short sales, an investor faces the potential for unlimited losses as the security's price rises. There can be no assurance that an active trading market for shares of an ETF will

develop or be maintained. Transactions in shares of the iShares Funds will result in brokerage commissions and will generate tax consequences. iShares Funds are obliged to

distribute portfolio gains to shareholders. Diversification may not protect against market risk or loss of principal.

620170426-147781-403477

An ETF is an index tracker

Source: BlackRock – www.ishares.dk, Net Total Return, 5 year period, Feb 2012 – Feb 2017. The return may increase or decrease as a result of currency fluctuations.

Performance data is displayed on a Net Asset Value basis, net of fees. Brokerage or transaction fees will apply. Past performance is not a guide to current or future performance.

The value of investments and the income from them can fall as well as rise and is not guaranteed. You may not get back the amount originally invested.

EMEAiS-3516 20170426-147781-403477

Why are ETFs so popular?

8

ETFs are index funds listed and traded like a stock on major stock exchanges globally.

Like an

index fund

Like

a stock

ETFs

What you see is what you get

Full transparency on constituents, performance versus benchmark and costs on a daily basis. Everything

published on our website.

Total Expense Ratio (TER) start from 0.07% for plain vanilla broad equity exposures*

ETFs seek to offer a cost-effective route to diversified market exposure

ETFs offer immediate exposure to a basket or group of securities for diversification through a single trade

Broad range of asset classes, including equities, bonds, commodities,

investment themes, etc.

ETFs are listed on exchanges and can be traded at any time the market is open

ETFs, bought on exchange, offer a way to access both diversified broad market and niche exposures in one

trade

ETFs offer two sources of liquidity:

Traditional liquidity measured by secondary market trading volume

The liquidity of the underlying assets via the creation and redemption process**

Transparency

Cost-effective

Diversification

Flexibility

Additional

liquidity

*iShares Core S&P500 UCITS ETF

** The mechanism used to ensure that the price of the ETF shares remains linked to the price of the underlying holdings is called the creation/redemption

process.

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Growth and Evolution of the ETF market

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Growth and evolution of the ETP Market -2017 a record year for Global ETPs

10

Data is as of February, 2017 for all regions. Global ETP flows and assets are sourced using Markit, as well as BlackRock internal sources. Flows for the years between 2010 and 2015 are sourced from Bloomberg as well as BlackRock internal sources.

Flows for years prior to 2010 are sourced from Strategic Insights Simfund. Asset classifications are assigned by BlackRock based on product definitions from provider websites and product prospectuses. Other static product information is obtained from

provider websites, product prospectuses, provider press releases, and provider surveys. Market returns are sourced from Bloomberg.

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Global ETF industry growthOver US$ 5 trillion by 2020

11

iShares

$1.22tn

Projected

>$5tn1

Industry

$3.31tn

As of 3/31/16. Source: BlackRock and Bloomberg.1Source: PriceWaterhouseCoopers, ETF 2020: Preparing for a new horizon. Based on the projections of more than three out of four survey participants. July 2016.

2020 est.

ETF Industry assets have been growing every year since 2009.

iShares is the leading ETF provider in the world with over $1 trillion in assets under management

Globally, ETFs assets have increased by over 250% in the last six years

Project the global industry assets under management to reach by 2020 to over $5 trillion1

Global ETF assets under management

Forecasted

growth1

0

500

1000

1500

2000

2500

3000

3500

01-2009 01-2010 01-2011 01-2012 01-2013 01-2014 01-2015 01-2016

iShares AUM

Rest of ETF Industry AUM

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State Street15%

Vanguard19%

PowerShares3%

db x-trackers2%

Nomura 2%

Charles Schwab

2%

Lyxor2%

First Trust Portfolios

1%

Wisdom Tree1%

Others 17%

ETF Competitive Landscape

European ETF ProvidersGlobal ETP Providers

Source: ETP Landscape, December 2016

37%

47.2%

db x-trackers10.3%

Lyxor9.6%

UBS5.4%

Credit Agricole4.3%

Source3.7%

Vanguard4.4%

State Street3.3%

ETF Securities3.1%

Deka ETFs1,6%

Others 7%

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Key areas of consideration for ETF selection

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Key areas of consideration for ETF selection

Performance

Trading & Valuation

Total Cost of Ownership

Other (i.e. Securities Lending)

Domiciled / Registration / Listing

Structure and Risk

Tax

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15

Several tracking instruments are available to investors via stock exchanges: Exchange Traded Funds

(ETFs) are often traded side-by-side with Exchange Traded Notes (ETNs), Exchange Traded

Commodities (ETCs) and Exchange Traded Instruments (ETIs)

Each of these products implies different levels of complexity and carries different structural risks

Possible counterparty risk among others

Possible additional risks dependent on

an individual’s circumstances

Not UCITS-compliant

Non-fund debt structures

Effectively unregulated

Possible counterparty risk among

others

Possible additional risks

dependent on an individual’s

circumstances

Neither notes

nor funds

Non UCITS-compliant

Possible additional

risks dependent on an

individual’s

circumstances

Exchange Traded Products (ETPs)

Exchange Traded Funds (ETFs)

Physically replicating ETFs:

– Fully replicating

– Optimised/partially replicating

Derivative replicating ETFs

Exchange Traded Notes

(ETNs)/Exchange Traded

Commodities (ETCs)

Exchange Traded

Instruments (ETIs)

Source: BlackRock. For illustrative purposes only.

Structure: It all starts by asking the right questions…

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INTERNAL FACTORS

• (-) Trading spreads

• (-) Creation/redemption

• (-) Brokerage fees

• (-) Tax

EXTERNAL FACTORS

Total

Cost of

Ownership

• (-) Total Expense Ratio (TER)

• (-) Rebalancing costs (RB)

• (-) Cash drag + =

Total Cost of Ownership: It all starts by asking the right questions…Consider additional components beyond TER.

Tracking Difference

• (+) ETF Lending

• (+) Security Lending (within the

fund)

Source: BlackRock. For illustrative purposes only.

16

Price

Service

Fuel

Insurance

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iShares ETF Product Range

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Global iShares: Two global and multiple local product lines804 Products Globally, AUM $1,293B

18

293

funds

Data is as of December 30, 2016 for all regions. Global ETP flows and assets are sourced using Markit, as well as BlackRock internal sources. Flows for the years between 2010 and 2015 are sourced from Bloomberg

as well as BlackRock internal sources. Flows for years prior to 2010 are sourced from Strategic Insights Simfund. Asset classifications are assigned by BlackRock based on product definitions from provider websites

and product prospectuses. Other static product information is obtained from provider websites, product prospectuses, provider press releases, and provider surveys. Market returns are sourced from Bloomberg.

.

EMEA

$267B

200

funds

North America

$1,011B

750

funds

Latin America

$3.7B

20

funds

Asia Pacific

$11.1B

50

funds

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The building blocks : Complete range of iShares ETFs

Corporate

Asset Backed

Securities

BasketsPropertyShort – term

Treasuries

Developed

Markets

GlobalGlobal

Government

Index Linked InfrastructureEmerging

Markets

Large, Mid,

Small - Cap

Growth, Value,

Dividend,Min Vol

Sectors /

Industry Groups

Domestic

Government

EquitiesFixed

IncomeAlternatives Commodities

Cash

Equivalents

Maturity

Buckets

Single

Regional,

Country

Investors can expand their

portfolios beyond traditional

investments

Extensive range of index fund

building blocks – across all

asset classes, regions and

marketsPrivate Equity

Emerging

Markets

Constructing a Low Cost, Diversified Portfolio with Index Building Blocks

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20

Five major megatrends shaping the globe

FIVE MAJOR MEGATRENDS

1. Shifting economic

power

The growing strength of

emerging economies

like India and China is

changing the balance

of power in the global

economy.

2. Climate change,

resource scarcity

An expanding global

population is

increasing the demand

for food and water and

putting pressure on

finite resources.

3. Demographics and

social change

Increasing age and size

of the global population

is fundamentally

changing the needs of

its inhabitants.

4. Technological

breakthrough

A technological

revolution is having a

profound impact on the

global economy, the

impact of which is still

little-understood.

5. Rapid urbanisation

According to the UN,

by 2030 two thirds of

the world’s population

will reside in cities.

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Capturing megatrends with investment themes

Themes Relevant Business Areas Megatrend

Breakthrough Healthcare

▪ Personalised Medicines (i.e. human genome)

▪ Generic Drugs (e.g. biosimilars)

▪ Immunotherapy (e.g. stem cell treatment)

▪ Healthcare IT

▪ Demographics & Social

Change

▪ Technological

Breakthrough

Ageing Population

▪ Age-related Conditions (e.g. hearing, vision, mobility)

▪ Pension Provision, Health Insurance

▪ Elderly Home-Care

▪ Consumer/Lifestyle (e.g. security, home automation, travel)

▪ Demographics & Social

Change

Automation & Robotics

▪ Artificial Intelligence (e.g. sensors)

▪ Agriculture and Mining Technology

▪ E-commerce Logistics (e.g. automated warehouse)

▪ Manufacturing (e.g. 3-D printing, operating systems)

▪ Technological

Breakthrough

Digitalisation

▪ Cybersecurity

▪ Retail and Mobile Convergence (i.e. distribution portals)

▪ Cloud Computing (e.g. data storage, security)

▪ Financial Technology (e.g. robo advisors)

▪ Technological

Breakthrough

▪ Demographics & Social

Change

23

Source: Stoxx, BlackRock as of 31st July 2016

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Ageing population

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23

Ageing is not just a first world problem

The US longevity economy* is to be US$ 15tn by 2020

• The global population is undergoing a paradigm shift. The current skew towards

the young will be largely eroded over the next 30 years.

• People are living longer and reproducing less, exacerbating the ‘baby-boomer’

phenomenon.

• US longevity economy is estimated at US$7.1tn, making it the world’s #3

economy – it is expected to grow to account for 52% of US GDP by 2032.

• This is a global issue – by 2050 close to 80% of people over the age of 60 will be

from currently less developed regions.

Ageing populationThe longevity revolution

…China already leading and the gap is widening

0,0%

20,0%

40,0%

60,0%

80,0%

100,0%

1950 1970 1990 2010 2030 2050 2070

Distribution of world 60+ population by development region

More Developed Less Developed

46%

54%

Longevity Economy Other Economy

52%48%

Longevity Economy Other Economy

Source: Oxford Economics

-

20.000

40.000

60.000

80.000

100.000

120.000

140.000

Popula

tio

n('000)s

Top ten countries with population over 80 in 2015 vs. 2050

2015 2050

14

10

23

35

41

47

55

0

10

20

30

40

50

60

2015 2020 2025 2030 2035 2040 2045 2050

# C

ou

ntr

ies

Number of countries with >30% population aged over 60, 2015-2050

Source: United Nations World Population Prospects: The 2015 Revision at 01/072015. *Longevity economy defined as all

economic activity generated by people aged over 50.

2012 2032

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24

iSTOXX Factset Ageing Population Index: Stock ExampleCarnival PLC

• Carnival PLC is a UK-listed company that owns and operates cruise ships.

• The company offers cruises globally, has a combined fleet of over 100 vessels across

10 cruise line brands, totalling over 190,000 lower berths.

• Despite being an established sector, cruise tourism is thriving due to an ageing global

population. The industry has seen a global increase in passenger numbers of 68% in

the last 10 years (source: Cruise Liners International Association (CLIA).

• Carnival is expanding into China, which currently represents 5% of global capacity. The

company estimates that the Chinese cruise market is expected to grow to over 200

million passengers by 2020.*

£1.500

£2.000

£2.500

£3.000

£3.500

£4.000

£4.500

dec10

apr11

aug11

dec11

apr12

aug12

dec12

apr13

aug13

dec13

apr14

aug14

dec14

apr15

aug15

dec15

apr16

RBICS Level Carnival Corporation & PLC

Level 1: Economy Consumer Services

Level 2: Sector Hospitality Services

Level 3: Sub-Sector Hospitality Services

Level 4: Industry Group Accommodation Providers

Level 5: Industry Cruise Lines

Level 6: Sub-Industry Ocean-Going Cruise Lines

Source: Bloomberg at 08/08/2016. *Estimates sourced from Carnival Q2 2016 earnings report. Reference to the names of each company mentioned in this communications is merely for

explaining the investment strategy, and should not be construed as investment advice or investment recommendation of those companies.

Carnival share price (£)

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Digitalisation

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238

123

18 17

83

28

144

18 13

544

302

41 24

115

40

374

6937

0

100

200

300

400

500

600

RE

venues (

$bn)

Total Mobile Internet Revenues ($bn)1

2013 2017e

26

The majority of people are already prepared to make sacrifices for their digital world

The Global mobile internet ecosystem is expected to

generate $1,546bn by 2017

• According to research by Citi, investments in financial technology have grown

exponentially in the past decade, rising from $1.8 billion in 2010 to $19 billion in

20151.

• Growth is not confined to financial technology (‘Fintech’) as the digital economy is

displacing established business models, shaking up industries and creating

entirely new industries.2

• While Fintech has targeted some of the most profitable areas of financial

services, cybersecurity solutions and cloud computing are also experiencing

exponential growth.3,4

DigitalisationDisruptive technology is changing the world

Source: 1https://www.bcgperspectives.com/content/articles/telecommunications_connected_world_growth_global_mobile_internet_economy/?chapter=2#chapter2. 2 Citi Global Perspectives,

Digital Disruption: How FinTech is Forcing Banking to a Tipping Point, March 2016 3 Bank of America Merrill Lynch, You’ve Been Hacked! – Global Cybersecurity Primer, September 2015 4

Synergy Research Group, 2015 Review Shows $110 billion Cloud Market Growing at 28% Annually, January 2016. Forecasts may not come to pass.

74%

66%62%

49%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Newspapers GPS Books TV

Consumers willing to give up offline media for a week rather than mobile internet

75%70%

67%61%

55%

44%

34%

27%

19%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Consumers willing to give up luxury category for a week rather than mobile internet

EMEAiS-4779

How can investors use ETFs?

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Diversification in one ETF

Does your portfolio look like A or B?

28

A single ETF transaction gives an investor instant exposure to an entire target investment market,

helping to spread risk more widely than buying a small basket of individual stocks

Number of Shares Held 4 45

Expected return (per annum) 7% 6%

Expected risk (per annum) 14% 9%

Source: www.ishares.dk, 16/09/2011, For illustrative purposes only. Past performance is not a guide to future performance and may not be repeated.

20170426-147781-403477

Constructing a Low Cost, Diversified Portfolio with Index Building Blocks

Source: IMF.org, iShares.dk, February 2017. For illustrative purposes only. Past performance is not a guide to future performance and may not be repeated.

*As per 27/02/17, subject to change

iShares Core MSCI World UCITS ETF iShares Global Govt Bond UCITS ETF

Example: Core portfolio of index investment gives diversified global

portfolio with approximately 1600* stocks, 600* bonds

29

Case 1: Simple strategy

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30

For illustrative purposes only. Footnote 1: While each current yield objective was determined with reference to the current yields of the underlying funds, it is specific to each model and is not a prediction of fund or

model yield or reflective of actual results. Realized yields will vary and may be lower. Model yields can be calculated by using a weighted average of the fund yields found in the table above. Past performance is not

predictive of future results. This information should not be relied upon as investment advice, research, or a recommendation by BlackRock regarding (i) the iShares Funds, (ii) the use or suitability of the model

portfolios or (iii) any security in particular. Allocations are subject to change.

Fixed Income 67.4% 54.9% 35.9% 25.2% 13.1%

IEGE iShares € Government Bond 0-1yr UCITS ETF 32.3% 30.4% 9.7% 8.5% 5.0%

SEGA iShares Core € Government Bond UCITS ETF 29.1% 21.1% 17.6% 18.5% 5.1%

E20Y iShares € Government Bond 20yr Target Duration UCITS ETF - - - - 3.0%

IBCX iShares € Corporate Bond Large Cap UCITS ETF - - 4.9% - -

IRCP iShares € Corporate Bond Interest Rate Hedged UCITS ETF 6.0% - - - -

SHYU iShares $ High Yield Corporate Bond UCITS ETF - 3.7% 3.7% - -

EMBE iShares J. P. Morgan $ EM Bond EUR Hedged UCITS ETF (Dist) - 3.7% - - -

Developed Equity 28.6% 38.1% 55.4% 61.3% 71.2%

IMEU iShares MSCI Europe UCITS ETF (Dist) - - 11.0% 12.0% 12.8%

IDVY iShares EURO Dividend UCITS ETF - 5.0% - - -

MVEU iShares Edge MSCI Europe Minimum Volatility UCITS ETF 11.9% 14.7% 16.0% 18.0% 18.0%

CSPX iShares Core S&P 500 UCITS ETF 7.7% 11.3% 12.4% 12.0% 18.0%

IUSE iShares S&P 500 EUR Hedged UCITS ETF (Acc) 5.0% 2.4% 10.3% 12.1% 13.2%

SJPA iShares Core MSCI Japan IMI UCITS ETF 2.0% 2.7% 2.7% 3.7% 3.7%

CSPXJ iShares Core MSCI Pacific ex Japan UCITS ETF 2.0% 2.0% 3.0% 3.5% 5.5%

Emerging Equity - 2.0% 3.7% 3.7% 6.0%

EMIM iShares Core MSCI EM IMI UCITS ETF - 2.0% 3.7% 3.7% 6.0%

Non-Traditional 4.0% 5.0% 5.0% 9.8% 9.7%

EXXY iShares Diversified Commodity Swap UCITS ETF (DE) 2.0% 2.0% 2.0% 2.0% 2.0%

IWDP iShares Developed Markets Property Yield UCITS ETF - - - 3.8% 3.7%

INFR iShares Global Infrastructure UCITS ETF 2.0% 3.0% 3.0% 4.0% 4.0%

Portfolio Overview ConservativeModerate

ConservativeModerate

Moderate

AggressiveAggressive

Standard Deviation1 4.03% 5.73% 8.07% 9.06% 10.64%

Weighted Average Expense Ratio 0.21% 0.24% 0.25% 0.27% 0.27%

Case 2: ETF Portfolio Allocation Model

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Case 3: Core/satellite strategies

• Broad market indices

• Efficient exposure to diversified baskets

of securities

• Coverage of main asset classes

Portfolio

ETF

Satellite

ETF

Satellite

ETF

Satellite

Index

Active

Strategy 1

Active

Strategy 2

Active

Strategy 3

Index in the core ETF in the satellite

• Concentrated, focused ETFs

• Sector and style

• Individual countries and regions

• Alternative asset classes

The core provides the axis around which the more specialized satellite investments can be added. This is typically an

index tracking fund, such as an ETF, that offers low cost, broadly diversified exposure to a market. The aim is to

deliver a return in line with the market’s performance (beta return).

The Satellites typically more specialized investments that are designed to generate additional returns (alpha). This

can be achieved through exposure to specific markets, specialist ETFs, actively managed funds, investment themes

and individual securities.

Core/satellite investing is based on the simple concept of splitting a portfolio into two segments.

3120170426-147781-403477

Practical session: How do you buy ETFs?

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33

How to use ETF Bloomberg Tickers on Nordnet….

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Appendix

ETF Structures

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35

Appendix: iStoxx Factset Thematic Indices - Construction

3

Screening criteria▪ Companies must have at least 50% of their revenue generated from one or more pre-

defined sector associated with that theme

▪ These sectors use the STOXX Factset Revere Hierarchy methodology which is a more

granular way of categorising companies by thematic sector

▪ Stocks must have a minimum market cap of EUR 200M and a minimum $1m 3 month

average daily traded volume

Weighting methodology

Stocks are equally-weighted, this seeks to ensure a broad exposure to each theme is provided

and the basket is not highly concentrated in certain names

Starting universe

The Stoxx Global Total Market Index

- Starting universe of over 8,000 stocks

- This includes emerging and developed markets

- Includes small cap stocks

1

2

Source: Stoxx as of 20 May 2016

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36

Level 6

Level 5

Level 4

Level 3

Level 2

Level 1 Healthcare

Healthcare Services

Miscellaneous Healthcare

Nutritional Health Pharmaceuticals

Nutraceuticals

Nutraceuticals (0.42% of revenue)

Patient Care

Other Ambulatory and Outpatient Patient Care

Specialized Ambulatory and Outpatient Patient

Care

Dialysis Services (77.37% of revenue)

Healthcare Equipment

Other Medical Devices

Specialized Medical Devices

System-Specific Specialized Medical

Devices

Urology Devices (22.21% of revenue)

Methodology Example Fresenius Medical Care AG & Co

The stock example is for the Ageing Population theme. It highlights how Fresenius generates over 50% of its revenue from

a level 6 sector (Dialysis Services) defined as being an Ageing Population related sector.

Source: Factset as at January 2016. For illustrative purposes only, characteristics subject to change. Reference to the names of each company mentioned in this communication is merely

for explaining the investment strategy, and should not be construed as investment advice or investment recommendation of those companies

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Disclaimer

37

Regulatory Information

BlackRock Advisors (UK) Limited, which is authorised and regulated by the Financial Conduct Authority ('FCA'), having its registered office at 12 Throgmorton Avenue, London, EC2N

2DL, England, Tel +44 (0)20 7743 3000, has issued this document for access by Professional Clients only and no other person should rely upon the information contained within it.

For your protection, calls are usually recorded. iShares plc, iShares II plc, iShares III plc, iShares IV plc, iShares V plc, iShares VI plc and iShares VII plc (together 'the Companies')

are open-ended investment companies with variable capital having segregated liability between their funds organised under the laws of Ireland and authorised by the Central Bank of

Ireland.

For investors in Denmark

The Funds are registered with Finanstilsynet, the Danish Financial Supervisory Authority, for marketing in Denmark. Any decision to invest must be based solely on the information

contained in the Company’s Prospectus, Key Investor Information Document and the latest half-yearly report and unaudited accounts and/or annual report and audited accounts and

the Danish country supplements. Investors should read the fund specific risks in the Key Investor Information Document and the Company’s Prospectus. Copies of all documentation

can be obtained free of charge from offices of the paying agent in Denmark BlackRock Copenhagen Branch, filial af BlackRock Investment Management (UK) Limited Harbour

House, Sundkrogsgade 21, 2100 København Ø, Denmark. This document is strictly confidential and may not be distributed without authorisation from BlackRock Advisors (UK)

Limited.

The Danish FSA has introduced rules on risk labelling for investment products pursuant to which various categories of investment products have been assigned a risk label. UCITS

funds have the yellow risk label, except for structured UCITS which have the red risk label. The risk labelling is based on the possibility of losing the invested amount based on the

product type and not the actual likelihood of this happening.

The risk labelling system is based on the colours of a traffic light.

Green: Investment products labelled green refer to those where the risk of losing the invested amount is considered very limited and where the product type is not difficult to

understand. Examples include Danish government bonds, EU government bonds and Danish mortgage bonds.

Yellow: Investment products labelled yellow refer to those where there is considered to be a risk of losing the entire or a part of the invested amount and where the product type is not

difficult to understand. Examples include listed shares, corporate bonds and shares of UCITS funds.

Red: Investment products labelled red refer to those where there is considered to be a risk of losing more than the invested amount or the product type is difficult to understand.

Examples include unlisted shares, options, futures, swaps and structured bonds.

Restricted Investors

This document is not, and under no circumstances is to be construed as an advertisement or any other step in furtherance of a public offering of shares in the United States or

Canada. This document is not aimed at persons who are resident in the United States, Canada or any province or territory thereof, where the companies/securities are not authorised

or registered for distribution and where no prospectus has been filed with any securities commission or regulatory authority. The companies/securities may not be acquired or owned

by, or acquired with the assets of, an ERISA Plan.

Risk Warnings

Investment in the products mentioned in this document may not be suitable for all investors. Past performance is not a guide to future performance and should not be the sole factor

of consideration when selecting a product. The price of the investments may go up or down and the investor may not get back the amount invested. Your income is not fixed and may

fluctuate. The value of investments involving exposure to foreign currencies can be affected by exchange rate movements. We remind you that the levels and bases of, and reliefs

from, taxation can change.

BlackRock has not considered the suitability of this investment against your individual needs and risk tolerance. The data displayed provides summary information. Investment should

be made on the basis of the relevant Prospectus which is available from the manager.

In respect of the products mentioned this document is intended for information purposes only and does not constitute investment advice or an offer to sell or a solicitation of an offer

to buy the securities described within. This document may not be distributed without authorisation from BlackRock Advisors (UK) Limited.

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Disclaimer

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Index Disclaimers

'FTSE®' is a trade mark jointly owned by the London Stock Exchange plc and the Financial Times Limited (the 'FT') and is used by FTSE International Limited ('FTSE') under licence.

The FTSE 100 Index is calculated by or on behalf of FTSE International Limited ('FTSE'). None of the Exchange, the FT nor FTSE sponsors, endorses or promotes iShares FTSE 100

UCITS ETF (Dist) nor is in any way connected to the fund or accepts any liability in relation to its issue, operation and trading. All copyright and database rights within the index values

and constituent list vest in FTSE. BlackRock Advisors (UK) Limited has obtained full licence from FTSE to use such copyright and database rights in the creation of this product.

The iBoxx referenced herein are the property of Markit Indices Limited and is used under license. The iShares $ High Yield Corporate Bond UCITS ETF, iShares Euro Corporate Bond

Large Cap UCITS ETF and iShares Euro High Yield Corporate Bond UCITS ETF are not sponsored, endorsed, or promoted by Markit Indices Limited.

"J.P. Morgan" and "J.P. Morgan EMBISM Global Core Index" are trademarks of JPMorgan Chase & Co. licensed for use for certain purposes by BlackRock Institutional Trust

Company, N.A. ("BTC"). iShares® is a registered trademark of BTC.J.P. Morgan is the Index Provider for the Underlying Index. J.P. Morgan is not affiliated with the Fund, BFA, State

Street, the Distributor or any of their respective affiliates.

J.P. Morgan provides financial, economic and investment information to the financial community. J.P. Morgan calculates and maintains the J.P. Morgan EMBISM Global Core Index,

J.P. Morgan Emerging Markets Bond Index Plus, J.P. Morgan Emerging Markets Bond Index Global and Emerging Markets Bond Index Global Diversified. Security additions and

deletions into the emerging markets bond indexes do not in any way reflect an opinion in the investment merits of the security.

iShares funds are not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such funds or any index on which such funds are based. The

Prospectus contains a more detailed description of the limited relationship that MSCI has with BlackRock Advisors (UK) Limited and any related funds.

Standard & Poor’s®', 'S&P®', are registered trademarks and 'S&P 500' and 'S&P 500 Minimum Volatility' are trademarks of Standard & Poor’s Financial Services LLC and have been

licensed for use for certain purposes by BlackRock Fund Advisors or its affiliates. iShares® is a registered trademark of BlackRock Fund Advisors or its affiliates.iShares Core S&P 500

UCITS ETF and iShares S&P 500 Minimum Volatility UCITS ETF are not sponsored, endorsed, sold or promoted by S&P and S&P makes no representation regarding the advisability

of investing in these products.

iShares funds are not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such funds or any index on which such funds are based. The

Prospectus contains a more detailed description of the limited relationship that MSCI has with BlackRock Advisors (UK) Limited and any related funds.

Standard & Poor’s®', 'S&P®', are registered trademarks and 'S&P SmallCap 600' is a trademark of Standard & Poor’s Financial Services LLC and have been licensed for use for

certain purposes by BlackRock Fund Advisors or its affiliates. iShares® is a registered trademark of BlackRock Fund Advisors or its affiliates. iShares S&P SmallCap 600 UCITS ETF is

not sponsored, endorsed, sold or promoted by S&P and S&P makes no representation regarding the advisability of investing in this product.

iSTOXX® FactSet Ageing Population Index , iSTOXX® FactSet Automation & Robotics Index , iSTOXX® FactSet Digitalisation Index , EURO STOXX® Select Dividend 30 and

iSTOXX® FactSet Breakthrough Healthcare Index is the intellectual property (including registered trademarks) of STOXX Limited and/or of its licensors (“licensors”), and is used under

a licence. The iShares ETFs is not sponsored, subscribed, sold or promoted by STOXX and its licensors and none of them bear any liability in this respect.

© 2017 BlackRock, Inc. All Rights reserved. BLACKROCK, BLACKROCK SOLUTIONS, iSHARES, BUILD ON BLACKROCK, SO WHAT DO I DO WITH MY MONEY and the stylized i

logo are registered and unregistered trademarks of BlackRock, Inc. or its subsidiaries in the United States and elsewhere. All other trademarks are those of their respective owners.

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