Form N-CSRS

N-CSRS 1 d354275dncsrs.htm FORM N-CSRS Form N-CSRS

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSRS

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-09102

iShares, Inc.

(Exact name of registrant as specified in charter)

c/o: State Street Bank and Trust Company

200 Clarendon Street, Boston, MA 02116

(Address of principal executive offices) (Zip code)

The Corporation Trust Incorporated

351 West Camden Street, Baltimore, MD 21201

(Name and address of agent for service)

Registrant’s telephone number, including area code: (415) 670-2000

Date of fiscal year end: October 31, 2012

Date of reporting period: April 30, 2012

Item 1. Reports to Stockholders.

LOGO

April 30, 2012

2012 Semi-Annual Report

iShares, Inc.

iShares Emerging Markets Corporate Bond Fund | CEMB | BATS

iShares Emerging Markets High Yield Bond Fund | EMHY | BATS

iShares Emerging Markets Local Currency Bond Fund | LEMB | NYSE Arca

iShares Global ex USD High Yield Corporate Bond Fund | HYXU | BATS

iShares Global High Yield Corporate Bond Fund | GHYG | BATS

LOGO

Table of Contents


Fund Performance Overviews			5
Shareholder Expenses			10
Schedules of Investments			12
iShares Emerging Markets Corporate Bond Fund			12
iShares Emerging Markets High Yield Bond Fund			15
iShares Emerging Markets Local Currency Bond Fund			18
iShares Global ex USD High Yield Corporate Bond Fund			20
iShares Global High Yield Corporate Bond Fund			24
Financial Statements			29
Financial Highlights			36
Notes to Financial Statements			41
Board Review and Approval of Investment Advisory Contracts			48
Supplemental Information			54

Fund Performance Overview

iSHARES^® EMERGING MARKETS CORPORATE BOND FUND

Performance as of April 30, 2012


Cumulative Total Returns
Inception to 4/30/12
NAV	MARKET	INDEX
0.94%	1.18%	0.86%

“Cumulative Total Returns” represent the total change in value of an investment over the period indicated and are calculated from an inception date of 4/17/12.

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (4/19/12), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The performance shown above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.

The iShares Emerging Markets Corporate Bond Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Morningstar^® Emerging Markets Corporate Bond Index^SM (the “Index”). The Index measures the performance of the U.S. dollar-denominated emerging market corporate bond market. The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the period from April 17, 2012 (inception date of the Fund) through April 30, 2012, the total return for the Fund was 0.94%, net of fees, while the total return for the Index was 0.86%.

PORTFOLIO ALLOCATION

As of 4/30/12


Sector/Investment Type		Percentage of Net Assets


Financial	24.88	%
Energy	17.30
Foreign Agency Obligations	16.66
Basic Materials	12.07
Communications	6.95
Industrial	6.34
Utilities	5.39
Diversified	3.13
Consumer Non-Cyclical	3.03
Consumer Cyclical	1.06
Short-Term and Other Net Assets	3.19

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 4/30/12


Security		Percentage of Net Assets


Petrobras International Finance Co., 5.75%, 01/20/20 (Brazil)	4.98	%
Petroleos de Venezuela SA, 9.00%, 11/17/21 (Venezuela)	2.82
Gazprom OAO Via Gaz Capital SA, 4.95%, 05/23/16 (Russia)	2.68
KazMunaiGas National Co., 9.13%, 07/02/18 (Kazakhstan)	2.47
Petroleos Mexicanos, 6.50%, 06/02/41 (Mexico)	2.41
Russian Agricultural Bank OJSC Via RSHB Capital SA, 7.18%, 05/16/13 (Russia)	2.36
Eskom Holdings Ltd., 5.75%, 01/26/21 (South Africa)	2.13
Taqa Abu Dhabi National Energy Co., 4.75%, 09/15/14 (United Arab Emirates)	2.09
Novatek Finance Ltd., 5.33%, 02/03/16 (Russia)	2.06
Banco Bradesco SA, 4.50%, 01/12/17 (Brazil)	2.06

TOTAL	26.06	%


FUND PERFORMANCE OVERVIEWS			5

Fund Performance Overview

iSHARES^® EMERGING MARKETS HIGH YIELD BOND FUND

Performance as of April 30, 2012


Cumulative Total Returns
Inception to 4/30/12
NAV	MARKET	INDEX
1.56%	2.40%	1.54%

“Cumulative Total Returns” represent the total change in value of an investment over the period indicated and are calculated from an inception date of 4/3/12.

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (4/3/12), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

The iShares Emerging Markets High Yield Bond Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Morningstar^® Emerging Markets High Yield Bond Index^SM(the “Index”). The Index measures the performance of the below-investment-grade U.S. dollar-denominated emerging market sovereign and corporate high-yield bond market. The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the period from April 3, 2012 (inception date of the Fund) through April 30, 2012, the total return for the Fund was 1.56%, net of fees, while the total return for the Index was 1.54%.

BOND CREDIT QUALITY

As of 4/30/12


Moody’s Credit Rating		Percentage of Total Investments*


Baa3	0.83	%
Ba1	7.24
Ba2	29.78
Ba3	11.21
B1	8.43
B2	20.94
B3	1.77
Not Rated	19.80

TOTAL	100.00	%

Excludes money market funds.

TEN LARGEST FUND HOLDINGS*

As of 4/30/12


Security		Percentage of Net Assets


Venezuela (Bolivarian Republic of), 5.75%, 02/26/16	10.24	%
Turkey (Republic of), 5.13%, 03/25/22	8.44
Petroleos de Venezuela SA, 5.50%, 04/12/37 (Venezuela)	7.11
Philippines (Republic of the), 9.50%, 02/02/30	7.05
Venezuela (Bolivarian Republic of), 12.75%, 08/23/22	4.28
Ukraine (Government of), 7.75%, 09/23/20	3.36
Philippines (Republic of the), 8.38%, 06/17/19	2.63
Sri Lanka (Democratic Socialist Republic of), 7.40%, 01/22/15	2.42
VimpelCom Holdings BV, 7.50%, 03/01/22 (Russia)	2.39
Digicel Ltd., 8.25%, 09/01/17 (Jamaica)	2.36

TOTAL	50.28	%


6		2012 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® EMERGING MARKETS LOCAL CURRENCY BOND FUND

Performance as of April 30, 2012


Cumulative Total Returns
Inception to 4/30/12
NAV	MARKET	INDEX
4.22%	5.57%	4.22%

“Cumulative Total Returns” represent the total change in value of an investment over the period indicated and are calculated from an inception date of 10/18/11.

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (10/20/11), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

The iShares Emerging Markets Local Currency Bond Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Barclays Emerging Markets Broad Local Currency Bond Index (the “Index”). The Index measures the performance of local currency-denominated sovereign bond markets of emerging market countries. The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended April 30, 2012, the total return for the Fund was 1.61%, net of fees, while the total return for the Index was 1.55%.

BOND CREDIT QUALITY

As of 4/30/12


Moody’s Credit Rating		Percentage of Total Investments*


Aa3	0.37	%
A1	25.33
A2	4.47
A3	9.18
Baa1	17.04
Baa2	9.28
Baa3	6.72
Ba1	4.58
Ba2	4.48
Not Rated	18.55

TOTAL	100.00	%

Excludes money market funds.

TEN LARGEST FUND HOLDINGS

As of 4/30/12


Security		Percentage of Net Assets


Brazil (Federative Republic of), 10.00%, 01/01/13	5.76	%
Korea (Republic of), 5.25%, 09/10/15	4.84
Russian Federation (The), 7.85%, 03/10/18	4.64
Korea (Republic of), 4.25%, 12/10/12	4.54
Korea (Republic of), 4.75%, 09/17/13	4.11
Korea (Republic of), 5.50%, 12/10/29	3.65
Hungary (Republic of), 5.50%, 02/12/16	3.30
Brazil (Federative Republic of), 0.00%, 01/01/15	3.24
Brazil (Federative Republic of), 10.00%, 01/01/21	3.14
Israel (State of), 6.00%, 02/28/19	3.12

TOTAL	40.34	%


FUND PERFORMANCE OVERVIEWS			7

Fund Performance Overview

iSHARES^® GLOBAL EX USD HIGH YIELD CORPORATE BOND FUND

Performance as of April 30, 2012


Cumulative Total Returns
Inception to 4/30/12
NAV	MARKET	INDEX
(0.60)%	0.36%	0.18%

“Cumulative Total Returns” represent the total change in value of an investment over the period indicated and are calculated from an inception date of 4/3/12.

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (4/3/12), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

The iShares Global ex USD High Yield Corporate Bond Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Markit iBoxx Global Developed Markets ex-US High Yield Index (the “Index”). The Index is designed to provide a broad representation of the global ex-U.S. dollar high yield corporate bond market and consists of high yield corporate bonds denominated in Euros, British pounds sterling and Canadian dollars. The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the period from April 3, 2012 (inception date of the Fund) through April 30, 2012, the total return for the Fund was (0.60)%, net of fees, while the total return for the Index was 0.18%.

PORTFOLIO ALLOCATION

As of 4/30/12


Sector		Percentage of Net Assets


Industrial	22.17	%
Communications	19.57
Financial	18.97
Consumer Cyclical	16.85
Consumer Non-Cyclical	10.46
Basic Materials	4.17
Diversified	2.51
Energy	1.44
Utilities	0.66
Short-Term and Other Net Assets	3.20

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 4/30/12


Security		Percentage of Net Assets


Fiat Industrial Finance Europe SA, 5.25%, 03/11/15 (Luxembourg)	2.97	%
HeidelbergCement Finance BV, 8.00%, 01/31/17 (Netherlands)	2.93
Lafarge SA, 5.38%, 06/26/17 (France)	2.88
Fiat Finance & Trade SA, 6.38%, 04/01/16 (Luxembourg)	2.84
Conti-Gummi Finance BV, 7.50%, 09/15/17 (Netherlands)	2.79
Unitymedia Hessen GmbH & Co. KG/Unitymedia NRW GmbH, 8.13%, 12/01/17 (Germany)	2.79
Renault SA, 5.63%, 06/30/15 (France)	2.75
Banco Espirito Santo SA, 5.63%, 06/05/14 (Portugal)	2.65
Wind Acquisition Finance SA, 11.75%, 07/15/17 (Italy)	2.48
Caixa Geral de Depositos SA, 5.13%, 02/19/14 (Portugal)	2.06

TOTAL	27.14	%


8		2012 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® GLOBAL HIGH YIELD CORPORATE BOND FUND

Performance as of April 30, 2012


Cumulative Total Returns
Inception to 4/30/12
NAV	MARKET	INDEX
0.62%	1.62%	0.77%

“Cumulative Total Returns” represent the total change in value of an investment over the period indicated and are calculated from an inception date of 4/3/12.

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (4/5/12), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

The iShares Global High Yield Corporate Bond Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Markit iBoxx Global Developed Markets High Yield Index (the “Index”). The Index is designed to provide a broad representation of the global high yield corporate bond market and consists of high yield corporate bonds denominated in U.S. dollars, Euros, British pounds sterling and Canadian dollars. The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the period from April 3, 2012 (inception date of the Fund) through April 30, 2012, the total return for the Fund was 0.62%, net of fees, while the total return for the Index was 0.77%.

PORTFOLIO ALLOCATION

As of 4/30/12


Sector		Percentage of Net Assets


Communications	20.78	%
Consumer Non-Cyclical	14.94
Financial	14.05
Consumer Cyclical	11.64
Industrial	11.40
Energy	9.44
Utilities	5.66
Technology	4.21
Basic Materials	3.77
Short-Term and Other Net Assets	4.11

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS*

As of 4/30/12


Security		Percentage of Net Assets


HCA Inc., 6.50%, 02/15/20	2.12	%
HeidelbergCement Finance BV, 8.00%, 01/31/17 (Netherlands)	1.74
Ford Motor Credit Co. LLC, 5.00%, 05/15/18	1.71
Calpine Corp., 7.50%, 02/15/21	1.48
Reynolds Group Issuer Inc./Reynolds Group Issuer LLC, 7.13%, 04/15/19	1.46
CIT Group Inc., 7.00%, 05/02/16	1.39
Lafarge SA, 5.38%, 06/26/17 (France)	1.30
Fiat Finance & Trade SA, 6.38%, 04/01/16 (Luxembourg)	1.28
Ally Financial Inc., 8.00%, 03/15/20	1.14
AES Corp. (The), 8.00%, 10/15/17	1.13

TOTAL	14.75	%

*	Excludes money market funds.


FUND PERFORMANCE OVERVIEWS			9

Shareholder Expenses (Unaudited)

iSHARES^®, INC.

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of Fund shares and (2) ongoing costs, including management fees and other Fund expenses. The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in a Fund and to compare these costs with the ongoing costs of investing in other funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from November 1, 2011 (or commencement of operations, as applicable) to April 30, 2012.

ACTUAL EXPENSES

The first line under each Fund in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line for your Fund under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

The second line under each Fund in the table below provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales of Fund shares. Therefore, the second line under each Fund in the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.


iShares Bond Fund	Beginning Account Value^a (11/1/11)		Ending Account Value (4/30/12)		Annualized Expense Ratio			Expenses Paid During Period^b (11/1/11 to 4/30/12)
Emerging Markets Corporate
Actual	$	1,000.00	$	1,009.40		0.60	%	$	0.21
Hypothetical (5% return before expenses)		1,000.00		1,021.90		0.60			3.02
Emerging Markets High Yield
Actual		1,000.00		1,015.60		0.65			0.48
Hypothetical (5% return before expenses)		1,000.00		1,021.60		0.65			3.27
Emerging Markets Local Currency
Actual		1,000.00		1,016.10		0.60			3.01
Hypothetical (5% return before expenses)		1,000.00		1,021.90		0.60			3.02


10		2012 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Shareholder Expenses (Unaudited) (Continued)

iSHARES^®, INC.


iShares Bond Fund	Beginning Account Value^a (11/1/11)		Ending Account Value (4/30/12)		Annualized Expense Ratio			Expenses Paid During Period ^b (11/1/11 to 4/30/12)
Global ex USD High Yield Corporate
Actual	$	1,000.00	$	994.00		0.40	%	$	0.29
Hypothetical (5% return before expenses)		1,000.00		1,022.90		0.40			2.01
Global High Yield Corporate
Actual		1,000.00		1,006.20		0.40			0.30
Hypothetical (5% return before expenses)		1,000.00		1,022.90		0.40			2.01

The beginning of the period (commencement of operations) is April 3, 2012 for the iShares Emerging Markets High Yield, iShares Global ex USD High Yield Corporate and the iShares Global High Yield Corporate Bond Funds and April 17, 2012 for the iShares Emerging Markets Corporate Bond Fund.

Actual expenses for the Funds are calculated using each Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days for the iShares Emerging Markets Local Currency Bond Fund, 27 days for the iShares Emerging Markets High Yield, iShares Global ex USD High Yield Corporate and iShares Global High Yield Corporate Bond Funds and 13 days for the iShares Emerging Markets Corporate Bond Fund) and divided by the number of days in the year (366 days). Hypothetical expenses for all the Funds, which are based on a hypothetical half year, are calculated using each Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days).


SHAREHOLDER EXPENSES			11

Schedule of Investments (Unaudited)

iSHARES^® EMERGING MARKETS CORPORATE BOND FUND

April 30, 2012


Security	Principal (000s)		Value

CORPORATE BONDS & NOTES^a — 80.15%

BRAZIL — 20.92%
Banco Bradesco SA
4.50%, 01/12/17^b	$	200	$	208,000
Banco do Brasil SA
4.50%, 01/22/15^b		100		104,500
Braskem Finance Ltd.
7.00%, 05/07/20^b		100		111,250
Centrais Eletricas Brasileiras SA
6.88%, 07/30/19^b		100		117,250
Fibria Overseas Finance Ltd.
7.50%, 05/04/20^b		100		104,750
Gerdau Trade Inc.
5.75%, 01/30/21^b		100		105,900
Itau Unibanco Holding SA
6.20%, 04/15/20^b		100		106,000
JBS USA LLC
7.25%, 06/01/21^b		46		43,930
Odebrecht Drilling Norbe VIII/IX Ltd.
6.35%, 06/30/21^b		100		106,457
Odebrecht Finance Ltd.
7.00%, 04/21/20^b		100		111,500
Petrobras International Finance Co.
5.75%, 01/20/20		450		502,271
Telemar Norte Leste SA
5.50%, 10/23/20^b		100		103,700
Vale Overseas Ltd.
4.63%, 09/15/20		125		132,373
6.88%, 11/21/36		119		141,635
Voto Votorantim Overseas Trading Co.
6.63%, 09/25/19^b		100		112,000

				2,111,516
CHILE — 1.40%
Celulosa Arauco y Constitucion SA
4.75%, 01/11/22^b		37		37,674
Empresa Nacional de Petroleo
4.75%, 12/06/21^b		100		103,383

				141,057


Security	Principal (000s)		Value

CHINA — 1.94%
Agile Property Holdings Ltd.
8.88%, 04/28/17^b	$	100	$	95,750
Evergrande Real Estate Group Ltd.
13.00%, 01/27/15^b		100		100,500

				196,250
COLOMBIA — 0.95%
BanColombia SA
6.13%, 07/26/20		47		49,820
Ecopetrol SA
7.63%, 07/23/19		37		46,454

				96,274
HONG KONG — 5.25%
Bank of China Hong Kong Ltd.
5.55%, 02/11/20^b		100		106,982
Hutchison Whampoa International Ltd.
4.63%, 09/11/15^b		100		106,923
Li & Fung Ltd.
5.25%, 05/13/20		100		106,926
Noble Group Ltd.
6.75%, 01/29/20^b		100		98,000
Swire Pacific MTN Financing Ltd.
5.50%, 08/19/19		100		110,648

				529,479
INDIA — 4.21%
Axis Bank Ltd.
4.75%, 05/02/16^b		100		100,321
ICICI Bank Ltd.
5.00%, 01/15/16^b		116		118,580
State Bank of India
4.50%, 10/23/14		100		102,923
Vedanta Resources PLC
9.50%, 07/18/18^b		100		102,750

				424,574
ISRAEL — 0.61%
Teva Pharmaceutical Finance LLC
6.15%, 02/01/36		50		61,462

				61,462


12		2012 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® EMERGING MARKETS CORPORATE BOND FUND

April 30, 2012


Security	Principal (000s)		Value

JAMAICA — 1.10%
Digicel Ltd.
12.00%, 04/01/14^b	$	100	$	111,250

				111,250
MEXICO — 8.78%
America Movil SAB de CV
5.00%, 03/30/20		100		112,971
6.13%, 03/30/40		100		120,095
BBVA Bancomer SA Texas Agency
4.50%, 03/10/16^b		158		158,000
Cemex Finance LLC
9.50%, 12/14/16^b		100		98,500
Grupo Bimbo SAB de CV
4.50%, 01/25/22^b		100		103,868
Grupo Televisa SAB
6.63%, 01/15/40		41		49,117
Petroleos Mexicanos
6.50%, 06/02/41^b		210		243,600

				886,151
PERU — 0.52%
Southern Copper Corp.
6.75%, 04/16/40		48		52,995

				52,995
QATAR — 3.11%
Qatari Diar Finance QSC
5.00%, 07/21/20^b		100		109,000
Qtel International Finance Ltd.
5.00%, 10/19/25^b		200		204,500

				313,500
RUSSIA — 15.89%
ALROSA Finance SA
8.88%, 11/17/14^b		100		110,500
Evraz Group SA
9.50%, 04/24/18^b		100		108,910
Gazprom OAO Via Gaz Capital SA
4.95%, 05/23/16^b		259		270,031
LUKOIL International Finance BV
6.38%, 11/05/14^b		100		107,981
6.66%, 06/07/22^b		120		132,941


Security	Principal (000s)		Value

Novatek Finance Ltd.
5.33%, 02/03/16^b	$	200	$	208,384
Russian Agricultural Bank OJSC Via RSHB Capital SA
7.18%, 05/16/13^b		228		238,469
Sberbank of Russia Via SB Capital SA
6.47%, 07/02/13		100		105,066
TNK-BP Finance SA
6.63%, 03/20/17^b		119		131,495
VTB Bank OJSC Via VTB Capital SA
6.47%, 03/04/15^b		180		190,125

				1,603,902
SINGAPORE — 1.03%
PSA International Pte Ltd.
3.88%, 02/11/21		100		103,736

				103,736
SOUTH KOREA — 8.28%
Export-Import Bank of Korea (The)
4.38%, 09/15/21		200		203,688
Hana Bank
4.00%, 11/03/16^b		200		206,733
Korea Development Bank
3.88%, 05/04/17		200		207,404
Korea Gas Corp.
6.00%, 07/15/14^b		100		107,751
POSCO
8.75%, 03/26/14^b		100		110,684

				836,260
UKRAINE — 0.98%
Metinvest BV
10.25%, 05/20/15^b		100		99,250

				99,250
UNITED ARAB EMIRATES — 5.18%
Dolphin Energy Ltd.
5.89%, 06/15/19^b		99		108,165
DP World Ltd.
6.85%, 07/02/37^b		100		96,250
Dubai Electricity & Water Authority
7.38%, 10/21/20^b		100		107,600


SCHEDULES OF INVESTMENTS			13

Schedule of Investments (Unaudited) (Continued)

iSHARES^® EMERGING MARKETS CORPORATE BOND FUND

April 30, 2012


Security	Principal (000s)		Value

Taqa Abu Dhabi National Energy Co.
4.75%, 09/15/14^b	$	200	$	211,200

				523,215

TOTAL CORPORATE BONDS & NOTES
(Cost: $8,097,024)				8,090,871

FOREIGN AGENCY OBLIGATIONS^a — 16.66%

BRAZIL — 1.17%
Banco Nacional de Desenvolvimento Economico e Social
6.50%, 06/10/19^b		100		118,250

				118,250
CHILE — 1.03%
Corporacion Nacional del Cobre de Chile
3.75%, 11/04/20^b		100		104,179

				104,179
CHINA — 0.98%
Sinochem Overseas Capital Co. Ltd.
4.50%, 11/12/20^b		100		98,504

				98,504
INDONESIA — 1.41%
Majapahit Holding BV
7.75%, 01/20/20^b		120		142,200

				142,200
KAZAKHSTAN — 2.47%
KazMunaiGas National Co.
9.13%, 07/02/18^b		200		249,250

				249,250
MALAYSIA — 2.46%
Penerbangan Malaysia Bhd
5.63%, 03/15/16^b		100		112,188
Petronas Capital Ltd.
7.88%, 05/22/22^b		100		136,448

				248,636
RUSSIA — 1.04%
Vnesheconombank Via VEB Finance PLC
5.45%, 11/22/17^b		100		104,586

				104,586


Security	Principal (000s) or Shares		Value

SOUTH AFRICA — 2.13%
Eskom Holdings Ltd.
5.75%, 01/26/21^b	$	200	$	215,000

				215,000
VENEZUELA — 3.97%
Petroleos de Venezuela SA
8.50%, 11/02/17^b		130		116,025
9.00%, 11/17/21^b		350		284,900

				400,925

TOTAL FOREIGN AGENCY OBLIGATIONS
(Cost: $1,668,817)				1,681,530

SHORT-TERM INVESTMENTS — 1.51%

MONEY MARKET FUNDS — 1.51%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.03%^c,d		152,350		152,350

				152,350

TOTAL SHORT-TERM INVESTMENTS
(Cost: $152,350)				152,350


TOTAL INVESTMENTS IN SECURITIES — 98.32%
(Cost: $9,918,191)				9,924,751
Other Assets, Less Liabilities — 1.68%				169,891

NET ASSETS — 100.00%			$	10,094,642

^a	Investments are denominated in U.S. dollars.

^b	This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933.

^c	Affiliated issuer. See Note 2.

^d	The rate quoted is the annualized seven-day yield of the fund at period end.

See notes to financial statements.


14		2012 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® EMERGING MARKETS HIGH YIELD BOND FUND

April 30, 2012


Security	Principal (000s)		Value

CORPORATE BONDS & NOTES^a — 22.54%

BRAZIL — 3.54%
Fibria Overseas Finance Ltd.
7.50%, 05/04/20^b	$	100	$	104,750
JBS USA LLC
7.25%, 06/01/21^b		50		47,750
OGX Austria GmbH
8.50%, 06/01/18^b		200		207,500

				360,000
CHINA — 2.48%
Country Garden Holdings Co. Ltd.
11.25%, 04/22/17^b		150		151,125
Evergrande Real Estate Group Ltd.
13.00%, 01/27/15^b		100		100,500

				251,625
INDIA — 1.42%
Vedanta Resources PLC
9.50%, 07/18/18^b		140		143,850

				143,850
JAMAICA — 2.36%
Digicel Ltd.
8.25%, 09/01/17^b		230		239,775

				239,775
KAZAKHSTAN — 0.99%
Halyk Savings Bank of Kazakhstan JSC
7.25%, 05/03/17^b		100		101,000

				101,000
MEXICO — 2.48%
Cemex Espana SA (Luxembourg)
9.25%, 05/12/20^b		128		114,624
Cemex SAB de CV
9.00%, 01/11/18^b		147		137,445

				252,069
RUSSIA — 6.70%
ALROSA Finance SA
8.88%, 11/17/14^b		216		238,680
VimpelCom Holdings BV
6.25%, 03/01/17^b		200		199,750
7.50%, 03/01/22^b		250		242,500

				680,930


Security	Principal (000s)		Value

SOUTH KOREA — 0.98%
Woori Bank
6.21%, 05/02/17^b,c	$	100	$	100,000

				100,000
UNITED ARAB EMIRATES — 1.59%
Dubai Electricity & Water Authority
7.38%, 10/21/20^b		150		161,400

				161,400

TOTAL CORPORATE BONDS & NOTES
(Cost: $2,290,675)				2,290,649

FOREIGN AGENCY OBLIGATIONS^a — 9.05%

PHILIPPINES — 1.94%
Power Sector Assets & Liabilities Management Corp.
7.25%, 05/27/19^b		160		196,800

				196,800
VENEZUELA — 7.11%
Petroleos de Venezuela SA
5.50%, 04/12/37^b		1,200		722,819

				722,819

TOTAL FOREIGN AGENCY OBLIGATIONS
(Cost: $910,827)				919,619

FOREIGN GOVERNMENT OBLIGATIONS^a — 62.92%

ARGENTINA — 2.38%
Argentina (Republic of)
2.50%, 12/31/38^d		200		67,500
8.28%, 12/31/33^e		253		174,229

				241,729
BELARUS — 0.91%
Belarus (Republic of)
8.95%, 01/26/18^b		100		92,500

				92,500
DOMINICAN REPUBLIC — 2.03%
Dominican Republic
9.04%, 01/23/18^b		186		205,873

				205,873


SCHEDULES OF INVESTMENTS			15

Schedule of Investments (Unaudited) (Continued)

iSHARES^® EMERGING MARKETS HIGH YIELD BOND FUND

April 30, 2012


Security	Principal (000s)		Value

EGYPT — 0.92%
Egypt (Arab Republic of)
5.75%, 04/29/20^b	$	100	$	93,500

				93,500
EL SALVADOR — 1.21%
El Salvador (Republic of)
7.65%, 06/15/35^b		119		123,463

				123,463
HUNGARY — 2.89%
Hungary (Republic of)
6.38%, 03/29/21		158		151,680
7.63%, 03/29/41		150		142,313

				293,993
LEBANON — 4.32%
Lebanon (Republic of)
6.38%, 03/09/20		200		212,000
8.50%, 08/06/15		200		227,250

				439,250
PAKISTAN — 0.76%
Pakistan (Islamic Republic of)
6.88%, 06/01/17^b		100		77,000

				77,000
PHILIPPINES — 10.86%
Philippines (Republic of the)
8.00%, 01/15/16		100		120,000
8.38%, 06/17/19		200		267,000
9.50%, 02/02/30		450		716,062

				1,103,062
ROMANIA — 0.78%
Romania (Republic of)
6.75%, 02/07/22^b		76		79,800

				79,800
SRI LANKA — 2.42%
Sri Lanka (Democratic Socialist Republic of)
7.40%, 01/22/15^b		230		245,525

				245,525


Security	Principal (000s) or Shares		Value

TURKEY — 13.15%
Turkey (Republic of)
5.13%, 03/25/22	$	842	$	857,577
6.88%, 03/17/36		206		233,295
7.25%, 03/05/38		10		11,885
8.00%, 02/14/34		143		181,967
9.50%, 01/15/14		46		51,451

				1,336,175
UKRAINE — 3.36%
Ukraine (Government of)
7.75%, 09/23/20^b		377		341,185

				341,185
URUGUAY — 1.33%
Uruguay (Republic of)
7.63%, 03/21/36		96		135,498

				135,498
VENEZUELA — 14.53%
Venezuela (Bolivarian Republic of)
5.75%, 02/26/16^b		1,150		1,040,750
12.75%, 08/23/22^b		404		435,525

				1,476,275
VIETNAM — 1.07%
Vietnam (Socialist Republic of)
6.75%, 01/29/20^b		100		108,625

				108,625

TOTAL FOREIGN GOVERNMENT OBLIGATIONS
(Cost: $6,295,408)				6,393,453

SHORT-TERM INVESTMENTS — 4.01%

MONEY MARKET FUNDS — 4.01%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.03%^f,g		406,961		406,961

				406,961

TOTAL SHORT-TERM INVESTMENTS
(Cost: $406,961)				406,961


16		2012 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® EMERGING MARKETS HIGH YIELD BOND FUND

April 30, 2012


	Value

TOTAL INVESTMENTS IN SECURITIES — 98.52%
(Cost: $9,903,871)	$	10,010,682
Other Assets, Less Liabilities — 1.48%		150,082

NET ASSETS — 100.00%	$	10,160,764

^a	Investments are denominated in U.S. dollars.

^b	This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933.

^c	Variable rate security. Rate shown is as of report date.

^d	Step coupon security. Coupon rate increases in increments until maturity. Interest rate shown reflects the rate currently in effect. Maturity date shown reflects final maturity date.

^e	Payment-in-kind (PIK) security. Income may be paid in cash or additional securities at the issuer’s discretion.

^f	Affiliated issuer. See Note 2.

^g	The rate quoted is the annualized seven-day yield of the fund at period end.

See notes to financial statements.


SCHEDULES OF INVESTMENTS			17

Schedule of Investments (Unaudited)

iSHARES^® EMERGING MARKETS LOCAL CURRENCY BOND FUND

April 30, 2012


Security	Principal (000s)			Value

FOREIGN GOVERNMENT OBLIGATIONS — 95.81%

BRAZIL — 12.14%
Brazil (Federative Republic of)
0.00%, 01/01/15		BRL	2,388	$	991,477
10.00%, 01/01/13		BRL	3,300		1,760,245
10.00%, 01/01/21		BRL	1,881		960,087

					3,711,809

CHILE — 0.35%
Chile (Republic of)
5.50%, 08/05/20		CLP	50,000		107,347

					107,347

COLOMBIA — 4.01%
Colombia (Republic of)
9.25%, 05/14/14		COP	1,500,000		900,204
9.85%, 06/28/27		COP	397,000		327,477

					1,227,681

CZECH REPUBLIC — 4.29%
Czech (Republic of)
2.80%, 09/16/13		CZK	8,400		454,859
4.60%, 08/18/18		CZK	9,150		539,128
5.70%, 05/25/24		CZK	5,010		317,875

					1,311,862

EGYPT — 1.77%
Egypt (Arab Republic of)
11.60%, 10/05/13		EGP	3,462		540,038

					540,038

HUNGARY — 4.39%
Hungary (Republic of)
5.50%, 02/12/16		HUF	237,210		1,010,232
6.00%, 10/24/12		HUF	41,850		191,930
6.00%, 11/24/23		HUF	35,760		140,345

					1,342,507

INDONESIA — 4.25%
Indonesia (Republic of)
9.50%, 06/15/15		IDR	1,548,000		191,152
9.50%, 07/15/31		IDR	4,044,000		566,943
10.00%, 07/15/17		IDR	711,000		93,607


Security	Principal (000s)			Value

10.00%, 09/15/24		IDR	3,168,000	$	448,880

					1,300,582

ISRAEL — 4.38%
Israel (State of)
3.50%, 09/30/13		ILS	1,440		385,923
6.00%, 02/28/19		ILS	3,245		953,810

					1,339,733
MALAYSIA — 4.53%
Malaysia (Federation of)
3.70%, 02/25/13		MYR	1,776		590,028
5.73%, 07/30/19		MYR	2,103		794,831

					1,384,859
MEXICO — 7.26%
United Mexican States
6.25%, 06/16/16		MXN	11,585		926,584
6.50%, 06/10/21		MXN	6,063		477,656
8.50%, 11/18/38		MXN	4,288		371,142
9.00%, 06/20/13		MXN	5,538		446,162

					2,221,544
PERU — 1.12%
Peru (Republic of)
8.20%, 08/12/26		PEN	717		342,031

					342,031
PHILIPPINES — 4.29%
Philippines (Republic of the)
4.95%, 01/15/21		PHP	7,000		170,875
7.00%, 01/27/16		PHP	26,514		688,139
8.13%, 12/16/35		PHP	15,360		452,320

					1,311,334
POLAND — 4.28%
Poland (Republic of)
5.25%, 04/25/13		PLN	996		317,530
5.75%, 04/25/14		PLN	1,017		328,901
5.75%, 09/23/22		PLN	2,040		661,747

					1,308,178
RUSSIA — 4.64%
Russian Federation (The)
7.85%, 03/10/18^a		RUB	40,000		1,420,618

					1,420,618


18		2012 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® EMERGING MARKETS LOCAL CURRENCY BOND FUND

April 30, 2012


Security	Principal (000s) or Shares			Value

SOUTH AFRICA — 4.27%
South Africa (Republic of)
6.25%, 03/31/36		ZAR	3,921	$	377,977
8.25%, 09/15/17		ZAR	6,813		927,693

					1,305,670
SOUTH KOREA — 21.02%
Korea (Republic of)
3.75%, 06/10/13		KRW	500,000		443,982
4.25%, 12/10/12		KRW	1,562,790		1,389,469
4.75%, 09/17/13		KRW	1,396,960		1,257,236
5.25%, 09/10/15		KRW	1,585,970		1,478,536
5.50%, 09/10/17		KRW	768,000		741,269
5.50%, 12/10/29		KRW	1,050,030		1,117,341

					6,427,833
THAILAND — 4.42%
Thailand (Kingdom of)
3.63%, 05/22/15		THB	27,459		894,726
6.15%, 07/07/26		THB	11,448		456,088

					1,350,814
TURKEY — 4.40%
Turkey (Republic of)
10.00%, 01/09/13		TRY	744		424,460
10.00%, 06/17/15		TRY	1,587		922,092

					1,346,552

TOTAL FOREIGN GOVERNMENT OBLIGATIONS
(Cost: $28,866,706)					29,300,992

SHORT-TERM INVESTMENTS — 0.26%

MONEY MARKET FUNDS — 0.26%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.03%^b,c			80,143		80,143

					80,143

TOTAL SHORT-TERM INVESTMENTS
(Cost: $80,143)					80,143


	Value

TOTAL INVESTMENTS IN SECURITIES — 96.07%
(Cost: $28,946,849)	$	29,381,135
Other Assets, Less Liabilities — 3.93%		1,201,928

NET ASSETS — 100.00%	$	30,583,063


BRL	—	Brazilian Real
CLP	—	Chilean Peso
COP	—	Colombian Peso
CZK	—	Czech Koruna
EGP	—	Egyptian Pound
HUF	—	Hungarian Forint
IDR	—	Indonesian Rupiah
ILS	—	Israeli Shekel
KRW	—	South Korean Won
MXN	—	Mexican Peso
MYR	—	Malaysian Ringgit
PEN	—	Peru Nuevo
PHP	—	Philippine Peso
PLN	—	Polish Zloty
RUB	—	New Russian Ruble
THB	—	Thai Baht
TRY	—	Turkish Lira
ZAR	—	South African Rand

^a	This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933.

^b	Affiliated issuer. See Note 2.

^c	The rate quoted is the annualized seven-day yield of the fund at period end.

See notes to financial statements.


SCHEDULES OF INVESTMENTS			19

Schedule of Investments (Unaudited)

iSHARES^® GLOBAL EX USD HIGH YIELD CORPORATE BOND FUND

April 30, 2012

Security

Principal

(000s)

Value

CORPORATE BONDS & NOTES — 96.80%

BELGIUM — 0.78%

Ideal Standard International SA

11.75%, 05/01/18^a

EUR

100

67,514

Ontex IV SA

7.50%, 04/15/18^a

EUR

100

125,744

193,258

CANADA — 7.55%

Air Canada

10.13%, 08/01/15^b

CAD

150

144,350

Bombardier Inc.

6.13%, 05/15/21^a

EUR

200

262,394

Connacher Oil and Gas Ltd.

8.75%, 08/01/18^b

CAD

100

100,278

Corus Entertainment Inc.

7.25%, 02/10/17

CAD

150

161,143

Flint Energy Services Ltd.

7.50%, 06/15/19^b

CAD

100

109,429

Ford Credit Canada Ltd.

7.50%, 08/18/15

CAD

450

497,183

Gateway Casinos & Entertainment Ltd.

8.88%, 11/15/17^b

CAD

100

105,200

Paramount Resources Ltd.

8.25%, 12/13/17

CAD

150

153,600

Quebecor Media Inc.

7.38%, 01/15/21^b

CAD

150

159,042

Vermilion Energy Inc.

6.50%, 02/10/16

CAD

100

105,939

Yellow Media Inc.

7.75%, 03/02/20

CAD

150

82,557

1,881,115

FINLAND — 0.52%

Stora Enso OYJ

5.50%, 03/07/19^a

EUR

100

129,714

FRANCE — 14.84%

Alcatel-Lucent

8.50%, 01/15/16

EUR

100

131,918

Security

Principal

(000s)

Value

Cegedim SA

7.00%, 07/27/15

EUR

100

124,970

CMA CGM SA

8.88%, 04/15/19^a

EUR

100

82,064

Crown European Holdings SA

7.13%, 08/15/18^a

EUR

100

142,282

Faurecia

9.38%, 12/15/16^a

EUR

100

144,962

Groupama SA

7.88%, 10/27/39^c

EUR

150

113,163

Labco SAS

8.50%, 01/15/18^a

EUR

125

137,318

Lafarge SA

5.38%, 06/26/17

EUR

550

717,033

Nexans SA

5.75%, 05/02/17

EUR

100

129,549

Numericable Finance & Co.

12.38%, 02/15/19^a

EUR

100

129,046

PagesJaunes Finance & Co.

8.88%, 06/01/18^a

EUR

100

97,943

Peugeot SA

5.63%, 07/11/17

EUR

300

394,960

Renault SA

5.63%, 06/30/15

EUR

500

686,224

Rexel SA

8.25%, 12/15/16

EUR

250

358,197

Tereos Europe

6.38%, 04/15/14^a

EUR

125

173,509

Wendel SA

6.75%, 04/20/18

EUR

100

134,803

3,697,941

GERMANY — 11.47%

ATU Auto-Teile-Unger Handels GmbH & Co. KG

11.00%, 05/15/14^a

EUR

100

121,171

Beverage Packaging Holdings (Luxembourg) II SA

9.50%, 06/15/17^a

EUR

150

180,168

Franz Haniel & Cie GmbH

5.88%, 02/01/17

EUR

350

491,500


20		2012 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® GLOBAL EX USD HIGH YIELD CORPORATE BOND FUND

April 30, 2012


Security	Principal (000s)			Value

Hapag-Lloyd AG
9.00%, 10/15/15^a		EUR	100	$	136,822
Heckler & Koch GmbH
9.50%, 05/15/18^a		EUR	100		85,638
Heidelberger Druckmaschinen AG
9.25%, 04/15/18^a		EUR	50		49,736
Kabel BW Holdings GmbH
7.50%, 03/15/19^a		EUR	350		481,772
Kabel Deutschland Vertrieb und Service GmbH
6.50%, 06/29/18^a		EUR	100		138,995
Kinove German Bondco GmbH
10.00%, 06/15/18^a		EUR	100		135,768
Styrolution Group GmbH
7.63%, 05/15/16^a		EUR	125		148,927
Unitymedia Hessen GmbH & Co. KG/Unitymedia NRW GmbH
8.13%, 12/01/17^a		EUR	500		695,153
UPCB Finance II Ltd.
6.38%, 07/01/20^a		EUR	150		193,532

					2,859,182

GREECE — 0.78%
OTE PLC
7.25%, 02/12/15^d		EUR	200		193,900

					193,900

IRELAND — 3.57%
Ardagh Glass Finance PLC
7.13%, 06/15/17^a		EUR	150		187,984
Ardagh Packaging Finance PLC
7.38%, 10/15/17^a		EUR	300		417,646
Smurfit Kappa Acquisitions
7.75%, 11/15/19^a		EUR	200		284,232

					889,862

ITALY — 2.48%
Wind Acquisition Finance SA
11.75%, 07/15/17^a		EUR	500		618,759

					618,759

JERSEY — 0.53%
Aston Martin Capital Ltd.
9.25%, 07/15/18^b		GBP	100		131,532

					131,532

Security

Principal

(000s)

Value

LUXEMBOURG — 11.22%

Capsugel FinanceCo SCA

9.88%, 08/01/19^a

EUR

100

144,935

ConvaTec Healthcare E SA

7.38%, 12/15/17^a

EUR

150

205,819

Fiat Finance & Trade SA

6.38%, 04/01/16^a

EUR

550

707,934

Fiat Industrial Finance Europe SA

5.25%, 03/11/15^a

EUR

550

739,054

FMC Finance VIII SA

6.50%, 09/15/18^a

EUR

250

361,925

KION Finance SA

7.88%, 04/15/18^a

EUR

100

127,557

Telenet Finance III Luxembourg SCA

6.63%, 02/15/21^a

EUR

200

263,783

Xefin Lux SCA

8.00%, 06/01/18^a

EUR

100

129,117

Zinc Capital SA

8.88%, 05/15/18^a

EUR

100

115,231

2,795,355

NETHERLANDS — 12.18%

Conti-Gummi Finance BV

7.50%, 09/15/17^a

EUR

500

695,525

Goodyear Dunlop Tires Europe BV

6.75%, 04/15/19^a

EUR

100

130,734

HeidelbergCement Finance BV

8.00%, 01/31/17^a

EUR

500

728,647

OI European Group BV

6.75%, 09/15/20^a

EUR

100

140,329

Phoenix PIB Finance BV

9.63%, 07/15/14^a

EUR

125

180,962

Refresco Group BV

7.38%, 05/15/18^a

EUR

100

121,220

Schaeffler Finance BV

7.75%, 02/15/17^a

EUR

250

344,206

UPC Holding BV

8.38%, 08/15/20^a

EUR

250

336,733

Ziggo Bond Co. BV

8.00%, 05/15/18^a

EUR

250

356,945

3,035,301


SCHEDULES OF INVESTMENTS			21

Schedule of Investments (Unaudited) (Continued)

iSHARES^® GLOBAL EX USD HIGH YIELD CORPORATE BOND FUND

April 30, 2012


Security	Principal (000s)			Value

NEW ZEALAND — 0.84%
Reynolds Group Issuer Inc./Reynolds Group Issuer LLC
7.75%, 10/15/16^a		EUR	150	$	209,213

					209,213

NORWAY — 0.33%
Norske Skogindustrier ASA
7.00%, 06/26/17		EUR	100		82,242

					82,242

PORTUGAL — 6.72%
Banco Comercial Portugues SA
5.63%, 04/23/14		EUR	350		409,970
Banco Espirito Santo SA
5.63%, 06/05/14		EUR	550		660,617
Caixa Geral de Depositos SA
5.13%, 02/19/14		EUR	400		513,537
Espirito Santo Financial Group SA
6.88%, 10/21/19		EUR	100		90,716

					1,674,840

SPAIN — 5.74%
Abengoa SA
9.63%, 02/25/15		EUR	200		270,710
Campofrio Food Group SA
8.25%, 10/31/16^a		EUR	125		164,832
Cirsa Funding Luxembourg SA
8.75%, 05/15/18^a		EUR	150		176,204
Inaer Aviation Finance Ltd.
9.50%, 08/01/17^a		EUR	100		115,645
Nara Cable Funding Ltd.
8.88%, 12/01/18^a		EUR	300		359,443
Obrascon Huarte Lain SA
7.38%, 04/28/15		EUR	150		206,481
8.75%, 03/15/18		EUR	100		136,440

					1,429,755

SWEDEN — 0.79%
Verisure Holding AB
8.75%, 09/01/18^a		EUR	150		195,813

					195,813

Security

Principal

(000s)

Value

SWITZERLAND — 1.12%

Sunrise Communications Holdings SA

8.50%, 12/31/18^a

EUR

200

277,945

UNITED KINGDOM — 13.42%

Anglian Water Osprey Financing PLC

7.00%, 01/31/18

GBP

100

164,496

BAA (SH) PLC

7.13%, 03/01/17

GBP

100

162,986

Bakkavor Finance (2) PLC

8.25%, 02/15/18^b

GBP

100

133,968

Boparan Finance PLC

9.88%, 04/30/18^b

GBP

150

248,449

EC Finance PLC

9.75%, 08/01/17^a

EUR

200

267,701

Gala Group Finance PLC

8.88%, 09/01/18^b

GBP

150

209,477

Investec Bank PLC

9.63%, 02/17/22^a

GBP

125

198,926

Jaguar Land Rover PLC

8.13%, 05/15/18^b

GBP

125

206,534

Kerling PLC

10.63%, 02/01/17^a

EUR

200

256,769

Matalan Finance PLC

8.88%, 04/29/16^b

GBP

100

138,433

Phones4u Finance PLC

9.50%, 04/01/18^b

GBP

100

145,335

Priory Group No. 3 PLC

7.00%, 02/15/18^b

GBP

150

231,399

R & R Ice Cream PLC

8.38%, 11/15/17^a

EUR

100

133,131

Rexam PLC

6.75%, 06/29/17^c

EUR

150

190,171

Thames Water Kemble Finance PLC

7.75%, 04/01/19^a

GBP

100

164,444

Thomas Cook Group PLC

6.75%, 06/22/15

EUR

200

169,414

Towergate Finance PLC

10.50%, 02/15/19^b

GBP

100

141,275


22		2012 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® GLOBAL EX USD HIGH YIELD CORPORATE BOND FUND

April 30, 2012


Security	Principal (000s) or Shares			Value

Virgin Media Finance PLC
8.88%, 10/15/19		GBP	100	$	181,942

					3,344,850

UNITED STATES — 1.92%
GMAC International Finance BV
7.50%, 04/21/15		EUR	250		344,205
Levi Strauss & Co.
7.75%, 05/15/18		EUR	100		135,502

					479,707

TOTAL CORPORATE BONDS & NOTES
(Cost: $24,495,643)					24,120,284

SHORT-TERM INVESTMENTS — 0.37%

MONEY MARKET FUNDS — 0.37%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.03%^e,f			91,482		91,482

					91,482

TOTAL SHORT-TERM INVESTMENTS
(Cost: $91,482)					91,482


TOTAL INVESTMENTS IN SECURITIES — 97.17%
(Cost: $24,587,125)					24,211,766
Other Assets, Less Liabilities — 2.83%					706,191

NET ASSETS — 100.00%				$	24,917,957

CAD — Canadian Dollar

EUR — Euro

GBP — British Pound

^a	This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933.

^b	This security may be resold to qualified institutional buyers under Rule 144A of the Securities Act of 1933.

^c	Variable rate security. Rate shown is as of report date.

^d	Step coupon security. Coupon rate increases in increments until maturity. Interest rate shown reflects the rate currently in effect. Maturity date shown reflects final maturity date.

^e	Affiliated issuer. See Note 2.

^f	The rate quoted is the annualized seven-day yield of the fund at period end.

See notes to financial statements.


SCHEDULES OF INVESTMENTS			23

Schedule of Investments (Unaudited)

iSHARES^® GLOBAL HIGH YIELD CORPORATE BOND FUND

April 30, 2012

Security

Principal

(000s)

Value

CORPORATE BONDS & NOTES — 95.89%

BELGIUM — 0.50%

Ontex IV SA

7.50%, 04/15/18^a

EUR

100

125,744

CANADA — 2.60%

Bombardier Inc.

7.75%, 03/15/20^b

USD

150

168,000

Ford Credit Canada Ltd.

7.50%, 08/18/15

CAD

100

110,485

Novelis Inc.

8.75%, 12/15/20

USD

150

165,187

Precision Drilling Corp.

6.63%, 11/15/20

USD

100

104,500

Quebecor Media Inc.

7.38%, 01/15/21^b

CAD

100

106,028

654,200

CAYMAN ISLANDS — 1.48%

Offshore Group Investments Ltd.

11.50%, 08/01/15

USD

100

109,167

Seagate HDD Cayman

7.75%, 12/15/18

USD

100

110,750

UPCB Finance III Ltd.

6.63%, 07/01/20^b

USD

150

151,875

371,792

FRANCE — 2.68%

Lafarge SA

5.38%, 06/26/17

EUR

250

325,924

Renault SA

5.63%, 06/30/15

EUR

150

205,867

Rexel SA

8.25%, 12/15/16

EUR

100

143,279

675,070

GERMANY — 1.51%

ATU Auto-Teile-Unger Handels GmbH & Co. KG

11.00%, 05/15/14^a

EUR

100

121,171


Security	Principal (000s)			Value

Beverage Packaging Holdings (Luxembourg) II SA
9.50%, 06/15/17^a		EUR	100	$	120,112
Kabel BW Holdings GmbH
7.50%, 03/15/19^a		EUR	100		137,649

					378,932

GREECE — 0.38%
OTE PLC
7.25%, 02/12/15^c		EUR	100		96,950

					96,950

IRELAND — 1.39%
Ardagh Packaging Finance PLC
7.38%, 10/15/17^a		EUR	150		208,823
Smurfit Kappa Acquisitions
7.75%, 11/15/19^a		EUR	100		142,116

					350,939

ITALY — 1.49%
Wind Acquisition Finance SA
7.25%, 02/15/18^b		USD	200		190,500
11.75%, 07/15/17^a		EUR	150		185,628

					376,128

JAMAICA — 0.44%
Digicel Group Ltd.
10.50%, 04/15/18^b		USD	100		110,050

					110,050

LUXEMBOURG — 4.21%
CHC Helicopter SA
9.25%, 10/15/20^b		USD	100		99,975
ConvaTec Healthcare E SA
7.38%, 12/15/17^a		EUR	100		137,213
Fiat Finance & Trade SA
6.38%, 04/01/16^a		EUR	250		321,788
Fiat Industrial Finance Europe SA
5.25%, 03/11/15^a		EUR	100		134,373
Intelsat (Luxembourg) SA
11.25%, 02/04/17		USD	150		155,705
Intelsat Jackson Holdings SA
7.25%, 04/01/19		USD	200		209,438

					1,058,492


24		2012 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® GLOBAL HIGH YIELD CORPORATE BOND FUND

April 30, 2012


Security	Principal (000s)			Value

MEXICO — 0.37%
NII Capital Corp.
7.63%, 04/01/21		USD	100	$	93,500

					93,500

NETHERLANDS — 4.14%
Conti-Gummi Finance BV
7.50%, 09/15/17^a		EUR	150		208,658
HeidelbergCement Finance BV
8.00%, 01/31/17^a		EUR	300		437,188
NXP BV/NXP Funding LLC
9.75%, 08/01/18^b		USD	100		114,111
Schaeffler Finance BV
7.75%, 02/15/17^a		EUR	100		137,682
Ziggo Bond Co. BV
8.00%, 05/15/18^a		EUR	100		142,778

					1,040,417

PORTUGAL — 0.72%
Banco Espirito Santo SA
5.63%, 06/05/14		EUR	150		180,168

					180,168

SPAIN — 1.82%
Abengoa SA
9.63%, 02/25/15		EUR	50		67,678
Campofrio Food Group SA
8.25%, 10/31/16^a		EUR	100		131,865
Nara Cable Funding Ltd.
8.88%, 12/01/18^a		EUR	100		119,814
Obrascon Huarte Lain SA
7.38%, 04/28/15		EUR	100		137,654

					457,011

SWEDEN — 0.52%
Verisure Holding AB
8.75%, 09/01/18^a		EUR	100		130,542

					130,542

UNITED KINGDOM — 4.63%
Boparan Finance PLC
9.88%, 04/30/18^b		GBP	100		165,633

Security

Principal

(000s)

Value

CEVA Group PLC

11.50%, 04/01/18^b

USD

100

97,750

EC Finance PLC

9.75%, 08/01/17^a

EUR

100

133,851

Expro Finance Luxembourg SCA

8.50%, 12/15/16^b

USD

100

96,500

Ineos Finance PLC

9.00%, 05/15/15^b

USD

100

106,625

Investec Bank PLC

9.63%, 02/17/22^a

GBP

100

159,141

Kerling PLC

10.63%, 02/01/17^a

EUR

100

128,384

Thames Water Kemble Finance PLC

7.75%, 04/01/19^a

GBP

100

164,444

Virgin Media Finance PLC
Series 1

9.50%, 08/15/16

USD

100

111,937

1,164,265

UNITED STATES — 67.01%

Advanced Micro Devices Inc.

8.13%, 12/15/17

USD

100

110,250

AES Corp. (The)

8.00%, 10/15/17

USD

250

284,844

Ally Financial Inc.

8.00%, 03/15/20

USD

250

285,625

AMC Entertainment Inc.

9.75%, 12/01/20

USD

100

97,500

AmeriGas Finance LLC/AmeriGas Finance Corp.

6.75%, 05/20/20

USD

100

101,833

Arch Coal Inc.

7.00%, 06/15/19^b

USD

200

178,750

ATP Oil & Gas Corp.

11.88%, 05/01/15

USD

100

76,650

Avaya Inc.

9.75%, 11/01/15

USD

100

98,750

Ball Corp.

5.75%, 05/15/21

USD

100

107,250

Berry Plastics Corp.

9.50%, 05/15/18

USD

100

106,125


SCHEDULES OF INVESTMENTS			25

Schedule of Investments (Unaudited) (Continued)

iSHARES^® GLOBAL HIGH YIELD CORPORATE BOND FUND

April 30, 2012


Security	Principal (000s)			Value

Biomet Inc.
11.63%, 10/15/17		USD	100	$	108,800
Cablevision Systems Corp.
7.75%, 04/15/18		USD	150		159,000
Calpine Corp.
7.50%, 02/15/21^b		USD	350		373,406
Case New Holland Inc.
7.88%, 12/01/17		USD	100		116,083
CCO Holdings LLC/CCO Holdings Capital Corp.
6.50%, 04/30/21		USD	150		156,687
7.88%, 04/30/18		USD	250		271,062
CDW LLC/CDW Finance Corp.
8.50%, 04/01/19		USD	100		106,725
Cequel Communications Holdings I LLC/Cequel Capital Corp.
8.63%, 11/15/17^b		USD	100		107,825
Chesapeake Energy Corp.
6.63%, 08/15/20		USD	200		194,333
Chrysler Group LLC/CG Co-Issuer Inc.
8.00%, 06/15/19		USD	200		206,893
Cincinnati Bell Inc.
8.38%, 10/15/20		USD	100		100,250
CIT Group Inc.
5.50%, 02/15/19^b		USD	150		154,031
7.00%, 05/02/16^b		USD	350		350,802
CityCenter Holdings LLC/CityCenter Finance Corp.
7.63%, 01/15/16		USD	100		105,700
Clear Channel Communications Inc.
9.00%, 03/01/21		USD	100		90,321
Clear Channel Worldwide Holdings Inc. Series B
9.25%, 12/15/17		USD	150		164,438
Clearwire Communications LLC/Clearwire Finance Inc.
12.00%, 12/01/15^b		USD	150		138,125
CommScope Inc.
8.25%, 01/15/19^b		USD	100		106,450
Community Health Systems Inc.
8.00%, 11/15/19^b		USD	200		211,250


Security	Principal (000s)			Value

Concho Resources Inc.
6.50%, 01/15/22		USD	100	$	105,333
Consol Energy Inc.
8.00%, 04/01/17		USD	150		158,063
Cricket Communications Inc.
7.75%, 10/15/20		USD	100		93,750
DaVita Inc.
6.38%, 11/01/18		USD	100		104,771
Denbury Resources Inc.
8.25%, 02/15/20		USD	100		111,250
DISH DBS Corp.
7.88%, 09/01/19		USD	150		173,313
E*Trade Financial Corp.
12.50%, 11/30/17		USD	150		174,375
Edison Mission Energy
7.00%, 05/15/17		USD	100		62,375
El Paso Corp.
7.00%, 06/15/17		USD	100		112,394
Energy Future Holdings Corp.
10.00%, 01/15/20		USD	150		162,188
Energy Transfer Equity LP
7.50%, 10/15/20		USD	150		166,313
Equinix Inc.
7.00%, 07/15/21		USD	100		109,208
First Data Corp.
7.38%, 06/15/19^b		USD	150		153,500
12.63%, 01/15/21		USD	250		250,670
Ford Motor Credit Co. LLC
5.00%, 05/15/18		USD	400		431,000
5.63%, 09/15/15		USD	150		162,602
Freescale Semiconductor Inc.
9.25%, 04/15/18^b		USD	200		219,215
Fresenius Medical Care US Finance II Inc.
5.63%, 07/31/19^b		USD	200		203,333
Frontier Communications Corp.
8.25%, 04/15/17		USD	200		215,500
GenOn Energy Inc.
9.50%, 10/15/18		USD	100		94,667
Goodyear Tire & Rubber Co. (The)
8.25%, 08/15/20		USD	100		105,643


26		2012 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® GLOBAL HIGH YIELD CORPORATE BOND FUND

April 30, 2012


Security	Principal (000s)			Value

Hanesbrands Inc.
6.38%, 12/15/20		USD	100	$	103,078
Harrah’s Operating Co. Inc.
10.00%, 12/15/18		USD	250		189,250
11.25%, 06/01/17		USD	150		165,375
HCA Holdings Inc.
7.75%, 05/15/21		USD	100		104,417
HCA Inc.
6.50%, 02/15/20		USD	500		534,000
Hertz Corp. (The)
6.75%, 04/15/19		USD	150		156,250
Hexion U.S. Finance Corp./Hexion Nova Scotia Finance ULC
9.00%, 11/15/20		USD	100		94,833
Host Hotels & Resorts LP
5.88%, 06/15/19		USD	100		105,750
Hughes Satellite Systems Corp.
7.63%, 06/15/21		USD	100		108,250
Huntsman International LLC
5.50%, 06/30/16		USD	100		99,833
Inergy LP/Inergy Finance Corp.
7.00%, 10/01/18		USD	100		102,250
International Lease Finance Corp.
4.88%, 04/01/15		USD	200		200,027
8.25%, 12/15/20		USD	200		224,000
Kinetic Concepts Inc./KCI USA Inc.
10.50%, 11/01/18^b		USD	100		103,292
Level 3 Escrow Inc.
8.13%, 07/01/19^b		USD	200		205,417
Limited Brands Inc.
6.90%, 07/15/17		USD	200		222,875
Linn Energy LLC/Linn Energy Finance Corp.
6.25%, 11/01/19^b		USD	200		196,800
MarkWest Energy Partners LP/MarkWest Energy Finance Corp.
6.75%, 11/01/20		USD	150		163,978
McClatchy Co. (The)
11.50%, 02/15/17		USD	100		105,271
MetroPCS Wireless Inc.
7.88%, 09/01/18		USD	100		102,500


Security	Principal (000s)			Value

MGM Resorts International
7.50%, 06/01/16		USD	100	$	103,875
9.00%, 03/15/20		USD	100		111,500
Mylan Inc.
6.00%, 11/15/18^b		USD	200		210,250
NRG Energy Inc.
7.63%, 05/15/19		USD	250		245,937
Peabody Energy Corp.
6.00%, 11/15/18^b		USD	150		152,250
Pinnacle Foods Finance LLC
9.25%, 04/01/15		USD	150		154,062
Plains Exploration & Production Co.
6.63%, 05/01/21		USD	100		103,400
Quicksilver Resources Inc.
8.25%, 08/01/15		USD	100		100,063
RBS Global Inc./Rexnord LLC
8.50%, 05/01/18		USD	100		108,625
Realogy Corp.
7.88%, 02/15/19^b		USD	100		98,167
Residential Capital LLC
9.63%, 05/15/15		USD	100		93,542
Reynolds Group Issuer Inc./Reynolds Group Issuer LLC
7.13%, 04/15/19^b		USD	350		365,918
9.88%, 08/15/19^b		USD	150		154,500
Rite Aid Corp.
9.50%, 06/15/17		USD	150		149,953
Sabine Pass LNG LP
7.50%, 11/30/16		USD	100		106,500
Samson Investment Co.
9.75%, 02/15/20^b		USD	150		156,469
SandRidge Energy Inc.
7.50%, 03/15/21		USD	100		100,125
Sealed Air Corp.
8.13%, 09/15/19^b		USD	100		111,583
Sears Holdings Corp.
6.63%, 10/15/18		USD	100		88,583
Springleaf Finance Corp.
6.90%, 12/15/17		USD	150		121,875
Sprint Nextel Corp.
9.00%, 11/15/18^b		USD	150		165,038


SCHEDULES OF INVESTMENTS			27

Schedule of Investments (Unaudited) (Continued)

iSHARES^® GLOBAL HIGH YIELD CORPORATE BOND FUND

April 30, 2012


Security	Principal (000s)			Value

11.50%, 11/15/21^b		USD	100	$	106,500
Standard Pacific Corp.
8.38%, 05/15/18		USD	100		106,625
SunGard Data Systems Inc.
7.38%, 11/15/18		USD	100		106,667
SUPERVALU Inc.
8.00%, 05/01/16		USD	100		104,958
Tenet Healthcare Corp.
8.88%, 07/01/19		USD	150		168,906
Texas Competitive Electric Holdings Co. LLC/ TCEH Finance Inc.
11.50%, 10/01/20^b		USD	150		93,000
Toys R Us Property Co. I LLC
10.75%, 07/15/17		USD	100		109,906
TransDigm Inc.
7.75%, 12/15/18		USD	150		162,656
United States Steel Corp.
7.38%, 04/01/20		USD	100		102,375
Univision Communications Inc.
6.88%, 05/15/19^b		USD	150		151,500
UR Financing Escrow Corp.
7.38%, 05/15/20^b		USD	150		157,125
USG Corp.
6.30%, 11/15/16		USD	100		96,250
Valeant Pharmaceuticals International Inc.
6.88%, 12/01/18^b		USD	250		258,333
Vulcan Materials Co.
7.50%, 06/15/21		USD	100		110,083
West Corp.
8.63%, 10/01/18		USD	100		109,833
Windstream Corp.
7.75%, 10/15/20		USD	200		213,800
WMG Acquisition Corp.
9.50%, 06/15/16		USD	100		109,375
WPX Energy Inc.
6.00%, 01/15/22^b		USD	100		97,188
XM Satellite Radio Inc.
7.63%, 11/01/18^b		USD	150		163,250

					16,857,212

TOTAL CORPORATE BONDS & NOTES
(Cost: $24,174,196)					24,121,412


Security	Shares		Value

SHORT-TERM INVESTMENTS — 1.41%

MONEY MARKET FUNDS — 1.41%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.03%^d,e		354,485	$	354,485

				354,485

TOTAL SHORT-TERM INVESTMENTS
(Cost: $354,485)				354,485


TOTAL INVESTMENTS IN SECURITIES — 97.30%
(Cost: $24,528,681)				24,475,897
Other Assets, Less Liabilities — 2.70%				679,197

NET ASSETS — 100.00%			$	25,155,094

CAD — Canadian Dollar

EUR — Euro

GBP — British Pound

USD — United States Dollar

^a	This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933.

^b	This security may be resold to qualified institutional buyers under Rule 144A of the Securities Act of 1933.

^c	Step coupon security. Coupon rate increases in increments until maturity. Interest rate shown reflects the rate currently in effect. Maturity date shown reflects final maturity date.

^d	Affiliated issuer. See Note 2.

^e	The rate quoted is the annualized seven-day yield of the fund at period end.

See notes to financial statements.


28		2012 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Unaudited)

iSHARES^®, INC.

April 30, 2012


	iShares Emerging Markets Corporate Bond Fund		iShares Emerging Markets High Yield Bond Fund		iShares Emerging Markets Local Currency Bond Fund

ASSETS
Investments, at cost:
Unaffiliated	$	9,765,841	$	9,496,910	$	28,866,706
Affiliated (Note 2)		152,350		406,961		80,143

Total cost of investments	$	9,918,191	$	9,903,871	$	28,946,849

Investments in securities, at fair value (Note 1):
Unaffiliated	$	9,772,401	$	9,603,721	$	29,300,992
Affiliated (Note 2)		152,350		406,961		80,143

Total fair value of investments		9,924,751		10,010,682		29,381,135
Foreign currencies, at value^a		—		—		276,435
Cash		4,438		2,875		—
Receivables:
Investment securities sold		—		—		1,000,017
Interest		167,593		152,000		540,231

Total Assets		10,096,782		10,165,557		31,197,818


LIABILITIES
Payables:
Investment securities purchased		—		—		596,576
Deferred foreign capital gains taxes (Note 1)		—		—		3,259
Investment advisory fees (Note 2)		2,140		4,793		14,920

Total Liabilities		2,140		4,793		614,755


NET ASSETS	$	10,094,642	$	10,160,764	$	30,583,063


Net assets consist of:
Paid-in capital	$	10,075,678	$	10,015,935	$	29,964,503
Undistributed net investment income		12,404		38,018		178,705
Undistributed net realized gain		—		—		3,735
Net unrealized appreciation on investments and translation of assets and liabilities in foreign currencies		6,560		106,811		436,120

NET ASSETS	$	10,094,642	$	10,160,764	$	30,583,063


Shares outstanding^b		200,000		200,000		600,000


Net asset value per share	$	50.47	$	50.80	$	50.97

^a	Cost of foreign currencies: $ —, $ — and $273,777, respectively.

^b	$0.001 par value, number of shares authorized: 500 million, 500 million and 500 million, respectively.

See notes to financial statements.


FINANCIAL STATEMENTS			29

Statements of Assets and Liabilities (Unaudited) (Continued)

iSHARES^®, INC.

April 30, 2012


	iShares Global ex USD High Yield Corporate Bond Fund			iShares Global High Yield Corporate Bond Fund

ASSETS
Investments, at cost:
Unaffiliated	$	24,495,643		$	24,174,196
Affiliated (Note 2)		91,482			354,485

Total cost of investments	$	24,587,125		$	24,528,681

Investments in securities, at fair value (Note 1):
Unaffiliated	$	24,120,284		$	24,121,412
Affiliated (Note 2)		91,482			354,485

Total fair value of investments		24,211,766			24,475,897
Foreign currencies, at value^a		389,971			261,387
Receivables:
Investment securities sold		109,397			341,813
Due from custodian (Note 4)		868,335			—
Interest		611,269			516,748

Total Assets		26,190,738			25,595,845


LIABILITIES
Payables:
Investment securities purchased		1,265,543			433,420
Investment advisory fees (Note 2)		7,238			7,331

Total Liabilities		1,272,781			440,751


NET ASSETS	$	24,917,957		$	25,155,094


Net assets consist of:
Paid-in capital	$	25,178,831		$	25,116,410
Undistributed net investment income		108,579			100,971
Undistributed net realized gain (accumulated net realized loss)		626			(12,647	)
Net unrealized depreciation on investments and translation of assets and liabilities in foreign currencies		(370,079	)		(49,640	)

NET ASSETS	$	24,917,957		$	25,155,094


Shares outstanding^b		500,000			500,000


Net asset value per share	$	49.84		$	50.31

^a	Cost of foreign currencies: $382,918 and $257,699, respectively.

^b	$0.001 par value, number of shares authorized: 500 million and 500 million, respectively.

See notes to financial statements.


30		2012 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations (Unaudited)

iSHARES^®, INC.

Six months ended April 30, 2012


	iShares Emerging Markets Corporate Bond Fund^a		iShares Emerging Markets High Yield Bond Fund^b		iShares Emerging Markets Local Currency Bond Fund

NET INVESTMENT INCOME
Interest — unaffiliated^c	$	14,544	$	42,802	$	845,166
Interest — affiliated (Note 2)		—		9		17

Total investment income		14,544		42,811		845,183


EXPENSES
Investment advisory fees (Note 2)		2,140		4,793		89,755

Total expenses		2,140		4,793		89,755

Net investment income		12,404		38,018		755,428


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated^d		—		—		25,553
Foreign currency transactions		—		—		(21,818	)

Net realized gain		—		—		3,735

Net change in unrealized appreciation/depreciation on:
Investments^e		6,560		106,811		(270,725	)
Translation of assets and liabilities in foreign currencies		—		—		(9,603	)

Net change in unrealized appreciation/depreciation		6,560		106,811		(280,328	)

Net realized and unrealized gain (loss)		6,560		106,811		(276,593	)

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	18,964	$	144,829	$	478,835

^a	For the period from April 17, 2012 (commencement of operations) to April 30, 2012.

^b	For the period from April 3, 2012 (commencement of operations) to April 30, 2012.

^c	Net of foreign withholding tax of $ —, $ — and $26,818, respectively.

^d	Net of foreign capital gains taxes of $ —, $ — and $332, respectively.

^e	Net of deferred foreign capital gains taxes of $ —, $ — and $2,548, respectively.

See notes to financial statements.


FINANCIAL STATEMENTS			31

Statements of Operations (Unaudited) (Continued)

iSHARES^®, INC.

Period ended April 30, 2012


	iShares Global ex USD High Yield Corporate Bond Fund^a			iShares Global High Yield Corporate Bond Fund^a

NET INVESTMENT INCOME
Interest — unaffiliated	$	115,801		$	108,283
Interest — affiliated (Note 2)		16			19

Total investment income		115,817			108,302


EXPENSES
Investment advisory fees (Note 2)		9,952			10,080

Total expenses		9,952			10,080
Less investment advisory fees waived (Note 2)		(2,714	)		(2,749	)

Net expenses		7,238			7,331

Net investment income		108,579			100,971


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		446			(11,299	)
Foreign currency transactions		180			(1,348	)

Net realized gain (loss)		626			(12,647	)

Net change in unrealized appreciation/depreciation on:
Investments		(375,359	)		(52,784	)
Translation of assets and liabilities in foreign currencies		5,280			3,144

Net change in unrealized appreciation/depreciation		(370,079	)		(49,640	)

Net realized and unrealized loss		(369,453	)		(62,287	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(260,874	)	$	38,684

^a	For the period from April 3, 2012 (commencement of operations) to April 30, 2012.

See notes to financial statements.


32		2012 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets

iSHARES^®, INC.


	iShares Emerging Markets Corporate Bond Fund		iShares Emerging Markets High Yield Bond Fund
	Period from April 17, 2012^a to April 30, 2012 (Unaudited)		Period from April 3, 2012^a to April 30, 2012 (Unaudited)

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	12,404	$	38,018
Net change in unrealized appreciation/depreciation		6,560		106,811

Net increase in net assets resulting from operations		18,964		144,829


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		10,075,678		10,015,935

Net increase in net assets from capital share transactions		10,075,678		10,015,935

INCREASE IN NET ASSETS		10,094,642		10,160,764

NET ASSETS
Beginning of period		—		—

End of period	$	10,094,642	$	10,160,764

Undistributed net investment income included in net assets at end of period	$	12,404	$	38,018


SHARES ISSUED
Shares sold		200,000		200,000

Net increase in shares outstanding		200,000		200,000

^a	Commencement of operations.

See notes to financial statements.


FINANCIAL STATEMENTS			33

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.


	iShares Emerging Markets Local Currency Bond Fund						iShares Global ex USD High Yield Corporate Bond Fund
	Six months ended April 30, 2012 (Unaudited)			Period from October 18, 2011^a to October 31, 2011			Period from April 3, 2012^a to April 30, 2012 (Unaudited)

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	755,428		$	13,024		$	108,579
Net realized gain (loss)		3,735			(301,685	)		626
Net change in unrealized appreciation/depreciation		(280,328	)		716,448			(370,079	)

Net increase (decrease) in net assets resulting from operations		478,835			427,787			(260,874	)


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(576,728	)		—			—

Total distributions to shareholders		(576,728	)		—			—


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		—			30,253,169			25,178,831

Net increase in net assets from capital share transactions		—			30,253,169			25,178,831

INCREASE (DECREASE) IN NET ASSETS		(97,893	)		30,680,956			24,917,957

NET ASSETS
Beginning of period		30,680,956			—			—

End of period	$	30,583,063		$	30,680,956		$	24,917,957

Undistributed net investment income included in net assets at end of period	$	178,705		$	5		$	108,579


SHARES ISSUED
Shares sold		—			600,000			500,000

Net increase in shares outstanding		—			600,000			500,000

^a	Commencement of operations.

See notes to financial statements.


34		2012 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS


	iShares Global High Yield Corporate Bond Fund
	Period from April 3, 2012^a to April 30, 2012 (Unaudited)

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	100,971
Net realized loss		(12,647	)
Net change in unrealized appreciation/depreciation		(49,640	)

Net increase in net assets resulting from operations		38,684


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		25,116,410

Net increase in net assets from capital share transactions		25,116,410

INCREASE IN NET ASSETS		25,155,094

NET ASSETS
Beginning of period		—

End of period	$	25,155,094

Undistributed net investment income included in net assets at end of period	$	100,971


SHARES ISSUED
Shares sold		500,000

Net increase in shares outstanding		500,000

^a	Commencement of operations.

See notes to financial statements.


FINANCIAL STATEMENTS			35

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.

Financial Highlights

iSHARES^®, INC.

(For a share outstanding throughout the period)

iShares Emerging Markets Corporate Bond Fund


	Period from Apr. 17, 2012^a to Apr. 30, 2012 (Unaudited)
Net asset value, beginning of period	$	50.00

Income from investment operations:
Net investment income^b		0.06
Net realized and unrealized gain^c		0.41

Total from investment operations		0.47

Net asset value, end of period	$	50.47


Total return		0.94	%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$	10,095
Ratio of expenses to average net assets^e		0.60	%
Ratio of net investment income to average net assets^e		3.48	%
Portfolio turnover rate^f		0	%

^a	Commencement of operations.

^b	Based on average shares outstanding throughout the period.

^c	The amount reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^d	Not annualized.

^e	Annualized for periods of less than one year.

^f	Portfolio turnover rate excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.


36		2012 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout the period)


iShares Emerging Markets High Yield Bond Fund
	Period from Apr. 3, 2012^a to Apr. 30, 2012 (Unaudited)
Net asset value, beginning of period	$	50.02

Income from investment operations:
Net investment income^b		0.19
Net realized and unrealized gain^c		0.59

Total from investment operations		0.78

Net asset value, end of period	$	50.80


Total return		1.56	%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$	10,161
Ratio of expenses to average net assets^e		0.65	%
Ratio of net investment income to average net assets^e		5.16	%
Portfolio turnover rate^f		0	%

^a	Commencement of operations.

^b	Based on average shares outstanding throughout the period.

^c	The amount reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^d	Not annualized.

^e	Annualized for periods of less than one year.

^f	Portfolio turnover rate excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.


FINANCIAL HIGHLIGHTS			37

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

iShares Emerging Markets Local Currency Bond Fund


	Six months ended Apr. 30, 2012 (Unaudited)			Period from Oct. 18, 2011^a to Oct. 31, 2011
Net asset value, beginning of period	$	51.13		$	49.85

Income from investment operations:
Net investment income^b		1.26			0.02
Net realized and unrealized gain (loss)^c		(0.46	)		1.26

Total from investment operations		0.80			1.28

Less distributions from:
Net investment income		(0.96	)		—

Total distributions		(0.96	)		—

Net asset value, end of period	$	50.97		$	51.13


Total return		1.61	%^d		2.57	%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$	30,583		$	30,681
Ratio of expenses to average net assets^e		0.60	%		0.60	%
Ratio of net investment income to average net assets^e		5.05	%		1.21	%
Portfolio turnover rate^f		23	%		0	%

^a	Commencement of operations.

^b	Based on average shares outstanding throughout each period.

^c	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^d	Not annualized.

^e	Annualized for periods of less than one year.

^f	Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.


38		2012 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout the period)

iShares Global ex USD High Yield Corporate Bond Fund


	Period from Apr. 3, 2012^a to Apr. 30, 2012 (Unaudited)
Net asset value, beginning of period	$	50.14

Income from investment operations:
Net investment income^b		0.22
Net realized and unrealized loss^c		(0.52	)

Total from investment operations		(0.30	)

Net asset value, end of period	$	49.84


Total return		(0.60	)%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$	24,918
Ratio of expenses to average net assets^e		0.40	%
Ratio of expenses to average net assets prior to waived fees^e		0.55	%
Ratio of net investment income to average net assets^e		6.00	%
Portfolio turnover rate^f		0	%^g

^a	Commencement of operations.

^b	Based on average shares outstanding throughout the period.

^c	The amount reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^d	Not annualized.

^e	Annualized for periods of less than one year.

^f	Portfolio turnover rate excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

^g	Rounds to less than 1%.

See notes to financial statements.


FINANCIAL HIGHLIGHTS			39

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout the period)

iShares Global High Yield Corporate Bond Fund


	Period from Apr. 3, 2012^a to Apr. 30, 2012 (Unaudited)
Net asset value, beginning of period	$	50.00

Income from investment operations:
Net investment income^b		0.20
Net realized and unrealized gain^c		0.11

Total from investment operations		0.31

Net asset value, end of period	$	50.31


Total return		0.62	%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$	25,155
Ratio of expenses to average net assets^e		0.40	%
Ratio of expenses to average net assets prior to waived fees^e		0.55	%
Ratio of net investment income to average net assets^e		5.51	%
Portfolio turnover rate^f		1	%

^a	Commencement of operations.

^b	Based on average shares outstanding throughout the period.

^c	The amount reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^d	Not annualized.

^e	Annualized for periods of less than one year.

^f	Portfolio turnover rate excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.


40		2012 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited)

iSHARES^®, INC.

iShares, Inc. (the “Company”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Company was incorporated under the laws of the State of Maryland on September 1, 1994 pursuant to amended and restated Articles of Incorporation.

These financial statements relate only to the following funds (each, a “Fund,” and collectively, the “Funds”):


iShares Bond Fund	Diversification Classification
Emerging Markets Corporate^a		Non-diversified
Emerging Markets High Yield^b		Non-diversified
Emerging Markets Local Currency		Non-diversified
Global ex USD High Yield Corporate^b		Non-diversified
Global High Yield Corporate^b		Non-diversified

Fund commenced operations on April 17, 2012.

Fund commenced operations on April 3, 2012.

Non-diversified funds generally hold securities of fewer issuers than diversified funds and may be more susceptible to the risks associated with these particular issuers, or to a single economic, political or regulatory occurrence affecting these issuers.

The investment objective of each Fund is to seek investment results that correspond generally to the price and yield performance, before fees and expenses, of its underlying index. The investment adviser uses a “passive” or index approach to try to achieve each Fund’s investment objective.

Each Fund may invest in securities of non-U.S. issuers that may trade in non-U.S. markets. This may involve certain considerations and risks not typically associated with securities of U.S. issuers. Such risks include, but are not limited to: generally less liquid and less efficient securities markets; generally greater price volatility; exchange rate fluctuations and exchange controls; imposition of restrictions on the expatriation of funds or other assets of the Funds; less publicly available information about issuers; the imposition of withholding or other taxes; higher transaction and custody costs; settlement delays and risk of loss attendant in settlement procedures; difficulties in enforcing contractual obligations; less regulation of securities markets; different accounting, disclosure and reporting requirements; more substantial governmental involvement in the economy; higher inflation rates; greater social, economic and political uncertainties; the risk of nationalization or expropriation of assets and the risk of war.

Pursuant to the Company’s organizational documents, the Funds’ officers and directors are indemnified against certain liabilities that may arise out of the performance of their duties to the Funds. Additionally, in the normal course of business, the Funds enter into contracts with service providers that contain general indemnification clauses. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred.

1.	*SIGNIFICANT ACCOUNTING POLICIES*

The following significant accounting policies are consistently followed by the Funds in the preparation of their financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.


NOTES TO FINANCIAL STATEMENTS			41

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

SECURITY VALUATION

U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The securities and other assets of each Fund are valued at fair value pursuant to the policies and procedures approved by the Board of Directors of the Company (the “Board”).

•

Fixed income investments are valued at the last available bid price received from independent pricing services. In determining the value of a fixed income investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrixes, market transactions in comparable investments, various relationships observed in the market between investments and calculated yield measures.

•

Open-end U.S. mutual funds are valued at that day’s published net asset value (NAV).

In the event that application of these methods of valuation results in a price for an investment which is deemed not to be representative of the fair value of such investment or if a price is not available, the investment will be valued based upon other available factors in accordance with policies approved by the Board. Such valuations are reported to the Board.

Fair value pricing could result in a difference between the prices used to calculate a Fund’s net asset value and the prices used by the Fund’s underlying index, which in turn could result in a difference between the Fund’s performance and the performance of the Fund’s underlying index.

Various inputs are used in determining the fair value of financial instruments. Inputs may be based on independent market data (“observable inputs”) or they may be internally developed (“unobservable inputs”). These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes. The level of a value determined for a financial instrument within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are as follows:

•

Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities;

•

Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally from or corroborated by observable market data by correlation or other means; and

•

Level 3 — Unobservable inputs for the asset or liability, including the Funds’ assumptions used in determining the fair value of investments.

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The categorization of a value determined for a financial instrument within the hierarchy is based upon the pricing transparency of the instrument and does not necessarily correspond to the Funds’ perceived risk of that instrument.


42		2012 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

The following table summarizes the value of each of the Funds’ investments according to the fair value hierarchy as of April 30, 2012. The breakdown of each Fund’s investments into major categories is disclosed in its respective Schedule of Investments.


iShares Bond Fund and Investment Type	Investments
iShares Bond Fund and Investment Type	Level 1		Level 2		Level 3		Total

Emerging Markets Corporate
Assets:
Corporate Bonds & Notes	$	—	$	8,090,871	$	—	$	8,090,871
Foreign Agency Obligations		—		1,681,530		—		1,681,530
Short-Term Investments		152,350		—		—		152,350

	$	152,350	$	9,772,401	$	—	$	9,924,751


Emerging Markets High Yield
Assets:
Corporate Bonds & Notes	$	—	$	2,290,649	$	—	$	2,290,649
Foreign Agency Obligations		—		919,619		—		919,619
Foreign Government Obligations		—		6,393,453		—		6,393,453
Short-Term Investments		406,961		—		—		406,961

	$	406,961	$	9,603,721	$	—	$	10,010,682


Emerging Markets Local Currency
Assets:
Foreign Government Obligations	$	—	$	29,300,992	$	—	$	29,300,992
Short-Term Investments		80,143		—		—		80,143

	$	80,143	$	29,300,992	$	—	$	29,381,135


Global ex USD High Yield Corporate
Assets:
Corporate Bonds & Notes	$	—	$	24,120,284	$	—	$	24,120,284
Short-Term Investments		91,482		—		—		91,482

	$	91,482	$	24,120,284	$	—	$	24,211,766


Global High Yield Corporate
Assets:
Corporate Bonds & Notes	$	—	$	24,121,412	$	—	$	24,121,412
Short-Term Investments		354,485		—		—		354,485

	$	354,485	$	24,121,412	$	—	$	24,475,897

SECURITY TRANSACTIONS AND INCOME RECOGNITION

Security transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized daily on the accrual basis.


NOTES TO FINANCIAL STATEMENTS			43

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

FOREIGN CURRENCY TRANSLATION

The accounting records of the Funds are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in foreign currencies, are translated into U.S. dollars using exchange rates deemed appropriate by the investment adviser. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.

Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of securities. Such fluctuations are reflected by the Funds as a component of realized and unrealized gains and losses from investments for financial reporting purposes.

FOREIGN TAXES

The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, capital gains on investments, certain foreign currency transactions or other corporate events. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Funds invest. These foreign taxes, if any, are paid by the Funds and are reflected in their Statements of Operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on capital gains from sales of investments and foreign currency transactions are included in their respective net realized gain (loss) categories, and foreign taxes on other corporate events are reflected in “Other foreign taxes.” Foreign taxes payable as of April 30, 2012, if any, are disclosed in the Funds’ Statements of Assets and Liabilities.

DISTRIBUTIONS TO SHAREHOLDERS

Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds.

FEDERAL INCOME TAXES

Each Fund is treated as an entity separate from the Company’s other funds for federal income tax purposes. It is the policy of each Fund to qualify as a regulated investment company by complying with the provisions applicable to regulated investment companies, as defined under Subchapter M of the Internal Revenue Code of 1986, as amended, and to annually distribute substantially all of its ordinary income and any net capital gains (taking into account any capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income and excise taxes. Accordingly, no provision for federal income taxes is required.

RECENT ACCOUNTING STANDARD

In May 2011, the Financial Accounting Standards Board issued amended guidance to improve disclosure about fair value measurements which will require the following disclosures for fair value measurements categorized as Level 3: quantitative information about the unobservable inputs and assumptions used in the fair value measurement, a description of the valuation policies and procedures and a narrative description of the sensitivity of the fair value measurement to changes in unobservable inputs and the interrelationships between those unobservable inputs. In addition, the amounts and reasons for all transfers in and out of Level 1 and Level 2 will be required to be disclosed. The amended guidance is effective for financial statements for fiscal years beginning after December 15, 2011, and interim periods within those fiscal years. Management is evaluating the impact of this guidance on the Funds’ financial statements and disclosures.


44		2012 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

2.	*INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES*

Pursuant to an Investment Advisory Agreement with the Company, BlackRock Fund Advisors (“BFA”) manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock, Inc. (“BlackRock”). Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except interest, taxes, brokerage commissions and other expenses connected with the execution of portfolio transactions, distribution fees, litigation expenses and any extraordinary expenses.

BFA has entered into a sub-advisory agreement with BlackRock International Limited (the “Sub-Advisor”), an affiliate of BFA, under which BFA pays the Sub-Advisor for services it provides to the iShares Emerging Markets Local Currency Bond Fund, iShares Global ex USD High Yield Corporate Bond Fund and iShares Global High Yield Corporate Bond Fund.

For its investment advisory services to each Fund, BFA is entitled to an annual investment advisory fee based on the average daily net assets of each Fund as follows:


iShares Bond Fund	Investment Advisory Fee
Emerging Markets Corporate		0.60	%
Emerging Markets High Yield		0.65
Emerging Markets Local Currency		0.60
Global ex USD High Yield Corporate		0.55
Global High Yield Corporate		0.55

BFA has contractually agreed to waive a portion of its investment advisory fees for the iShares Global ex USD High Yield Corporate Bond Fund and the iShares Global High Yield Corporate Bond Fund through December 31, 2014 in order to limit total annual operating expenses to 0.40% of average daily net assets.

At the Special Meeting of the Board of Directors held on January 5, 2012, the Board approved a new distribution agreement with BlackRock Investments, LLC (“BRIL”). BRIL is an affiliate of BFA. Effective April 1, 2012, BRIL replaced SEI Investments Distribution Co. as the distributor for each Fund. Pursuant to the new distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.

Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is included in “Interest — affiliated” in the Statements of Operations.

As of April 30, 2012, The PNC Financial Services Group, Inc. (“PNC”) and Barclays PLC (“Barclays”) are the largest stockholders of BlackRock. Due to the ownership structure, PNC is an affiliate of the Funds for 1940 Act purposes, but Barclays is not.

Certain directors and officers of the Company are also officers of BlackRock Institutional Trust Company, N.A. and/or BFA.


NOTES TO FINANCIAL STATEMENTS			45

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

3.	*INVESTMENT PORTFOLIO TRANSACTIONS*

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the period ended April 30, 2012 were as follows:


iShares Bond Fund	Purchases		Sales
Emerging Markets Corporate	$	9,769,036	$	—
Emerging Markets High Yield		858,442		—
Emerging Markets Local Currency		6,714,842		7,059,159
Global ex USD High Yield Corporate		6,445,509		106,534
Global High Yield Corporate		11,450,268		334,759

In-kind transactions (see Note 4) for the period ended April 30, 2012 were as follows:


iShares Bond Fund	In-kind Purchases		In-kind Sales
Emerging Markets High Yield	$	8,639,328	$	—
Global ex USD High Yield Corporate		18,152,280		—
Global High Yield Corporate		13,074,693		—

4.	*CAPITAL SHARE TRANSACTIONS*

Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at net asset value. Except when aggregated in Creation Units, shares of each Fund are not redeemable. Transactions in capital shares for each Fund are disclosed in detail in the Statements of Changes in Net Assets.

The consideration for the purchase of Creation Units of a fund in the Company generally consists of the in-kind deposit of a designated portfolio of securities, which constitutes an optimized representation of the securities of that fund’s underlying index, and a specified amount of cash. Certain funds in the Company may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the Company’s administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities.

From time to time, settlement of securities related to in-kind contributions or in-kind redemptions may be delayed. In such cases, securities related to in-kind contributions are reflected as “Due from custodian” and securities related to in-kind redemptions are reflected as “Securities related to in-kind transactions” in the Statements of Assets and Liabilities.

5.	*INCOME TAX INFORMATION*

For purposes of U.S. GAAP, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset values per share.


46		2012 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

The tax character of current year distributions will be determined at the end of the current fiscal year.

As of April 30, 2012, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:


iShares Bond Fund	Tax Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
Emerging Markets Corporate	$	9,918,191	$	41,810	$	(35,250	)	$	6,560
Emerging Markets High Yield		9,903,871		123,677		(16,866	)		106,811
Emerging Markets Local Currency		28,946,844		742,635		(308,344	)		434,291
Global ex USD High Yield Corporate		24,587,125		67,714		(443,073	)		(375,359	)
Global High Yield Corporate		24,528,681		143,703		(196,487	)		(52,784	)

Management has reviewed the tax positions as of April 30, 2012, inclusive of the open tax return years, and has determined that no provision for income tax is required in the Funds’ financial statements.

6.	*SUBSEQUENT EVENTS*

Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or disclosure in the financial statements.


NOTES TO FINANCIAL STATEMENTS			47

Board Review and Approval of Investment Advisory

Contracts (Unaudited)

iSHARES^®, INC.

I. iShares Emerging Markets Corporate Bond Fund and iShares Emerging Markets High Yield Bond Fund

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Company’s Board of Directors (the “Board”), including a majority of Directors who are not “interested persons” of the Company (as that term is defined in the 1940 Act) (the “Independent Directors”), is required to consider and approve the proposed Investment Advisory Contract between the Company and BFA on behalf of the Funds (the “Advisory Contract”). As required by Section 15(c), the Board requested, and BFA provided, such information as the Board, with advice from independent counsel, deemed reasonably necessary to evaluate the terms of the proposed Advisory Contract.

At a meeting held on March 14-15, 2012, the Board approved the selection of BFA and the Advisory Contract for the Funds, based on its review of qualitative and quantitative information provided by BFA. The Board also considered information previously provided by BFA, BlackRock Institutional Trust Company, N.A. (“BTC”), and BlackRock, Inc. (“BlackRock”), as applicable, at prior Board meetings. The Independent Directors were advised by their independent counsel throughout the process.

In selecting BFA and approving the Advisory Contract for the Funds, the Board, including the Independent Directors, considered the following factors, no one of which was controlling, and made the following conclusions:

Nature, Extent and Quality of Services to be Provided by BFA — The Board reviewed the scope of services to be required of or provided by BFA under the Advisory Contract. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience as well as the resources expected to be available from BFA and its affiliates for the support of the Funds and their shareholders. The Board considered in particular that BFA’s services for other iShares funds reflect BFA’s core competencies, including BFA’s effective use of its proprietary investment systems analyzing securities market risk, asset class correlations and expected returns. The Board also considered services provided by BFA and its affiliates to other iShares funds in connection with the review of counterparty and issuer credit risk and securities lending opportunities and the oversight of intermediaries that provide shareholder support and processing functions. The Board considered representations by BFA, BTC, and BlackRock that the scope and quality of services to be provided to the Funds would be similar to the scope and quality of services provided to other iShares funds.

The Board also considered BFA’s compliance program and its compliance record with respect to other iShares funds. The Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons who will be responsible for the day-to-day management of the Funds. In addition to the above considerations, the Board reviewed and considered BFA’s investment and risk management processes and strategies, and matters related to BFA’s portfolio compliance policies and procedures.

The Board took into account discussions at prior Board meetings, including representations and information provided by management regarding the resources and strengths of BFA and the financial condition of BFA and BlackRock.

Based on review of this information, the Board concluded that the nature, extent and quality of services to be provided by BFA to the Funds under the Advisory Contract supported the Board’s approval of the Advisory Contract.


48		2012 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contracts (Unaudited) (Continued)

iSHARES^®, INC.

as comprising the Funds’ applicable peer group pursuant to Lipper’s proprietary methodology, and any registered funds that would otherwise have been excluded from Lipper’s comparison group because of various factors, but were nonetheless included at the request of BFA (the “Lipper Group”). Because there are few, if any, exchange-traded funds or index funds that track indexes similar to those tracked by the Funds, the Lipper Group included, in part, mutual funds, closed-end funds, exchange-traded funds, or funds with differing investment objective classifications, investment focuses and other characteristics (e.g., actively managed funds). In support of its review of the statistical information, the Board was provided with a general description of the methodology used by Lipper to determine the applicable Lipper Group and to prepare this information. The Board further noted that due to the limitations in providing comparable funds in the Lipper Group, the statistical information may or may not provide meaningful direct comparisons to the Funds. The Board also noted that the proposed investment advisory fee rate and overall expenses for the Funds compared favorably to the investment advisory fee rate and overall expenses of the funds in the Lipper Group.

Based on this review, the other factors considered at the meeting, and their general knowledge of mutual fund pricing, the Board concluded that the proposed investment advisory fees and expense levels of the Funds, as compared to the investment advisory fees and expense levels of the funds in the Lipper Group, supported the Board’s approval of the Advisory Contract.

Costs of Services to be Provided to the Funds and Profits to be Realized by BFA and Affiliates — The Board did not consider the profitability of the Funds to BFA based on the fees payable under the Advisory Contract or revenue to be received by BFA or its affiliates in connection with services to be provided to the Funds since the proposed relationships had not yet commenced. The Board noted that it expects to receive profitability information from BFA on at least an annual basis and will thus be in a position to evaluate whether, following the expiration of the Advisory Contract’s initial two year term, any adjustments in Funds fees would be appropriate.

Economies of Scale — The Board reviewed information regarding economies of scale or other efficiencies that may result from increases in the Funds’ assets. The Board noted that the Advisory Contract did not provide for any breakpoints in the Funds’ investment advisory rates as the assets of the Funds increase. However, the Board noted that should material economies of scale exist in the future, a breakpoint structure for the Funds may be appropriate. The Board noted information presented at prior Board meetings regarding BFA’s historic profitability as investment adviser to the iShares fund complex and noted that BFA and BlackRock had continued to make significant investments in the iShares fund complex and the infrastructure supporting the iShares funds.

Based on this review, as well as the discussions described above in connection with the Lipper Group comparisons, the Board, recognizing its responsibility to consider this issue at least annually following an initial two-year period, concluded that the structure of the investment advisory fees reflects appropriate sharing of potential economies of scale with the Funds’ shareholders and supported the Board’s approval of the Advisory Contract.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board considered certain information regarding the investment advisory/management fee rate for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end and closed-end funds registered under the 1940 Act, collective trust funds, and institutional separate accounts (together, the “Other Accounts”). The Board noted that BFA and its affiliates do not manage Other Accounts that track the same underlying indexes as the Funds. The Board further noted that BFA previously provided the Board with detailed information regarding how Other Accounts (particularly institutional clients) generally differ from the Funds, including in terms of the different services provided as well as other significant differences in the approach of BFA and its affiliates to the Funds, on one hand, and Other Accounts, on the other. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACTS			49

Board Review and Approval of Investment Advisory

Contracts (Unaudited) (Continued)

iSHARES^®, INC.

risks of managing and providing other services to the Funds, as publicly traded exchange-traded funds, as compared to Other Accounts that are institutional clients in light of differing regulatory requirements and client-imposed mandates. The Board noted that the investment advisory fee rate under the Advisory Contract for the Funds was generally higher than the investment advisory/management fee rates for Other Accounts that are institutional clients of BFA (or its affiliates), and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates — Except as noted below, the Board did not consider any ancillary revenue to be received by BFA and/or its affiliates in connection with the services to be provided to the Funds by BFA since the proposed relationship had not yet commenced. However, the Board noted that BFA would not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Funds. The Board considered the potential payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Funds in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board also considered the potential for revenue to BTC, the Funds’ securities lending agent, for lending any portfolio securities. The Board further noted that any portfolio transactions on behalf of the Funds placed through a BFA affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Funds’ shareholders.

Based on the considerations described above, the Board determined that the investment advisory fee rates under the Advisory Contract do not constitute fees that are so disproportionately large as to bear no reasonable relationship to the services to be rendered and that could not have been the product of arm’s-length bargaining and concluded that it is in the best interest of the Funds and their shareholders to approve the Advisory Contract.

II. iShares Global ex USD High Yield Corporate Bond Fund and iShares Global High Yield Corporate Bond Fund

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Company’s Board of Directors (the “Board”), including a majority of Directors who are not “interested persons” of the Company (as that term is defined in the 1940 Act) (the “Independent Directors”), is required to consider and approve the proposed Investment Advisory Contract between the Company and BFA on behalf of the Funds (the “Advisory Contract”), and the proposed sub-advisory agreement between BFA and BlackRock International Limited (“BIL”) (the “Sub-Advisory Agreement”), on behalf of the Funds. As required by Section 15(c), the Board requested, and BFA provided, such information as the Board, with advice from independent counsel, deemed reasonably necessary to evaluate the terms of the proposed Advisory Contract and Sub-Advisory Agreement.

At a meeting held on March 14-15, 2012, the Board approved the selection of BFA and the Advisory Contract for the Funds, based on its review of qualitative and quantitative information provided by BFA. The Board also considered information previously provided by BFA, BlackRock Institutional Trust Company, N.A. (“BTC”), and BlackRock, Inc. (“BlackRock”), as applicable, at prior Board meetings, including in connection with the use of BIL as a sub-adviser for other iShares Funds. The Advisory Contract and the Sub-Advisory Agreement are referred to hereafter as the “Advisory Agreements”. The Independent Directors were advised by their independent counsel throughout the process.

In selecting BFA and approving the Advisory Agreements for the Funds, the Board, including the Independent Directors, considered the following factors, no one of which was controlling, and made the following conclusions:

Nature, Extent and Quality of Services to be Provided by BFA — The Board reviewed the scope of services to be required of or provided by BFA (and any services to be provided by BIL on BFA’s behalf or direction) under the Advisory Agreements. In reviewing the scope of these


50		2012 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contracts (Unaudited) (Continued)

iSHARES^®, INC.

services, the Board considered the investment philosophy and experience of BFA and BIL as well as the resources expected to be available from BFA and BIL and their affiliates for the support of the Funds and their shareholders. The Board considered in particular that BFA’s services for other iShares funds reflect BFA’s core competencies, including BFA’s effective use of its proprietary investment systems analyzing securities market risk, asset class correlations and expected returns. The Board also considered services provided by BFA and BIL and their affiliates to other iShares funds in connection with the review of counterparty and issuer credit risk and securities lending opportunities and the oversight of intermediaries that provide shareholder support and processing functions. The Board considered representations by BFA, BTC, and BlackRock that the scope and quality of services to be provided to the Funds would be similar to the scope and quality of services provided to other iShares funds.

The Board also considered the compliance program of BFA and BIL and their compliance record with respect to other iShares funds. The Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons who will be responsible for the day-to-day management of the Funds. In addition to the above considerations, the Board reviewed and considered BFA’s investment and risk management processes and strategies, and matters related to BFA’s portfolio compliance policies and procedures.

Based on review of this information, the Board concluded that the nature, extent and quality of services to be provided by BFA and BIL to the Funds under the Advisory Agreements supported the Board’s approval of the Advisory Agreements.

Fund Expenses — The Board reviewed statistical information prepared by Lipper Inc. (“Lipper”), an independent provider of investment company data, regarding the expense ratio components, including actual advisory fees, waivers/reimbursements, and gross and net total expenses of the Funds in comparison with the same information for other registered investment companies objectively selected by Lipper as comprising the Funds’ applicable peer group pursuant to Lipper’s proprietary methodology (the “Lipper Group”). Because there are few, if any, exchange-traded funds or index funds that track indexes similar to those tracked by the Funds, the Lipper Group included, in part, mutual funds, closed-end funds, exchange-traded funds, or funds with differing investment objective classifications, investment focuses and other characteristics (e.g., actively managed funds). In support of its review of the statistical information, the Board was provided with a general description of the methodology used by Lipper to determine the applicable Lipper Group and to prepare this information. The Board further noted that due to the limitations in providing comparable funds in the Lipper Group, the statistical information may or may not provide meaningful direct comparisons to the Funds. The Board also noted that the proposed investment advisory fee rate and overall expenses for the Funds compared favorably to the investment advisory fee rate and overall expenses of the funds in the Lipper Group. The Board noted that there would be no additional fees imposed on the Funds relating to the Sub-Advisory Agreement.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACTS			51

Board Review and Approval of Investment Advisory

Contracts (Unaudited) (Continued)

iSHARES^®, INC.

expects to receive profitability information from BFA on at least an annual basis and will thus be in a position to evaluate whether, following the expiration of the Advisory Agreements’ initial two year term, any adjustments in Funds fees would be appropriate.

Other Benefits to BFA and/or its Affiliates — Except as noted below, the Board did not consider any ancillary revenue to be received by BFA and/or its affiliates in connection with the services to be provided to the Funds by BFA since the proposed relationship had not yet commenced. However, the Board noted that BFA and BIL would not use soft dollars or consider the value of research or other services that may be provided to BFA and BIL (including their affiliates) in selecting brokers for portfolio transactions for the Funds. The Board considered the potential payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Funds in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board also considered the potential for revenue to BTC, the Funds’ securities lending agent, for lending any portfolio securities. The Board further noted that any portfolio transactions on behalf of the Funds placed through a BFA affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Funds’ shareholders.


52		2012 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contracts (Unaudited) (Continued)

iSHARES^®, INC.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACTS			53

Supplemental Information (Unaudited)

iSHARES^®, INC.

Section 19(a) Notices

The amounts and sources of distributions reported are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon each Fund’s investment experience during the year and may be subject to changes based on the tax regulations. Shareholders will receive a Form 1099-DIV each calendar year that will inform them how to report distributions for federal income tax purposes.


	Total Cumulative Distributions for the Fiscal Year-to-Date								% Breakdown of the Total Cumulative Distributions for the Fiscal Year-to-Date
iShares Bond Fund	Net Investment Income		Net Realized Capital Gains		Return of Capital		Total Per Share		Net Investment Income			Net Realized Capital Gains			Return of Capital			Total Per Share
Emerging Markets Local Currency	$	0.96121	$	—	$	—	$	0.96121		100	%		—	%		—	%		100	%


54		2012 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

LOGO

For more information visit www.iShares.com

or call 1-800-474-2737

This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.

Investing involves risk, including possible loss of principal.

The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by Markit Indices Limited or Morningstar, Inc., nor are they sponsored, endorsed or issued by Barclays Capital Inc. None of these companies make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the companies listed above.

A description of the policies that the Funds uses to determine how to vote proxies relating to portfolio securities and information about how the Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request, by calling toll-free 1-800-474-2737; on the Funds’ website at www.iShares.com; and on the U.S. Securities and Exchange Commission (SEC) website at www.sec.gov.

The Funds file their complete schedules of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the SEC’s website or may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The Funds also disclose their complete schedules of portfolio holdings on a daily and monthly basis on the Funds’ website.

©2012 BlackRock. All rights reserved. iShares^® and BlackRock^® are registered trademarks of BlackRock. All other trademarks, servicemarks or registered trademarks are the property of their respective owners.


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iS-SAR-102-0412

Item 2. Code of Ethics.

Not applicable to this semi-annual filing.

Item 3. Audit Committee Financial Expert.

Not applicable to this semi-annual filing.

Item 4. Principal Accountant Fees and Services.

Not applicable to this semi-annual filing.

Item 5. Audit Committee of Listed Registrants.

Not applicable to this semi-annual filing.

Item 6. Investments.

(a) Schedules of investments are included as part of the reports to shareholders filed under Item 1 of this Form.

(b) Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable to the Registrant.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable to the Registrant.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable to the Registrant.

Item 10. Submission of Matters to a Vote of Security Holders.

There were no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Directors.

Item 11. Controls and Procedures.

(a)

The President (the Registrant’s Principal Executive Officer) and Chief Financial Officer (the Registrant’s Principal Financial Officer) have concluded that, based on their evaluation as of a date within 90 days of the filing date of this report, the disclosure controls and procedures of the Registrant (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) are reasonably designed to achieve the purposes described in Section 4(a) of the attached certification.

(b)

There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a) (1) Not applicable to this semi-annual filing.

(a) (2) Section 302 Certifications are attached.

(a) (3) Not applicable to the Registrant.

(b) Section 906 Certifications are attached.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

iShares, Inc.

By: /s/ Michael Latham

Michael Latham, President (Principal Executive Officer)

Date: June 20, 2012

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By: /s/ Michael Latham

Michael Latham, President (Principal Executive Officer)

Date: June 20, 2012

By: /s/ Jack Gee

Jack Gee, Treasurer and Chief Financial Officer (Principal Financial Officer)

Date: June 20, 2012