N-CSRS 1 d508501dncsrs.htm FORM N-CSRS FOR ISHARES INC. Form N-CSRS for iShares Inc.
Table of Contents

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:   August 31, 2013

Date of reporting period:   February 28, 2013

Table of Contents

Item 1. Reports to Stockholders.

 

FEBRUARY 28, 2013

 

 

2013 SEMI-ANNUAL REPORT (UNAUDITED)

 

     LOGO

 

iShares, Inc.

 

Ø    

iShares MSCI Japan Index Fund  |  EWJ  |  NYSE Arca

Table of Contents

Table of Contents

 

Fund Performance Overview

      5   

Shareholder Expenses

      6   

Schedule of Investments

      7   

Financial Statements

      13   

Financial Highlights

      16   

Notes to Financial Statements

      17   

Supplemental Information

      24   

Table of Contents

Fund Performance Overview

iSHARES® MSCI JAPAN INDEX FUND

Performance as of February 28, 2013

 

Average Annual Total Returns
Year Ended 2/28/13   Five Years Ended 2/28/13   Ten Years Ended 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
4.50%   4.40%   4.87%   (2.81)%   (2.46)%   (2.27)%   5.37%   5.22%   5.96%
Cumulative Total Returns
Year Ended 2/28/13   Five Years Ended 2/28/13   Ten Years Ended 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
4.50%   4.40%   4.87%   (13.29)%   (11.70)%   (10.86)%   68.68%   66.27%   78.47%

“Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

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. 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 MSCI Japan Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI Japan IndexSM (the “Index”). The Index consists of stocks traded primarily on the Tokyo Stock Exchange. 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 February 28, 2013, the total return for the Fund was 14.85%, net of fees, while the total return for the Index was 15.21%.

 

PORTFOLIO ALLOCATION

As of 2/28/13

 

Sector    Percentage of
Net Assets

Consumer Cyclical

      27.92 % 

Financial

      19.92   

Industrial

      19.89   

Consumer Non-Cyclical

      12.35   

Basic Materials

      5.93   

Communications

      5.78   

Technology

      3.67   

Utilities

      2.57   

Energy

      1.56   

Short-Term and Other Net Assets

      0.41   
  

 

 

  

TOTAL

      100.00 % 
  

 

 

  

TEN LARGEST FUND HOLDINGS

As of 2/28/13

 

Security    Percentage of
Net Assets

Toyota Motor Corp.

      6.13 % 

Mitsubishi UFJ Financial Group Inc.

      3.08   

Honda Motor Co. Ltd.

      2.62   

Sumitomo Mitsui Financial Group Inc.

      2.35   

Mizuho Financial Group Inc.

      2.20   

Canon Inc.

      1.78   

Takeda Pharmaceutical Co. Ltd.

      1.78   

SoftBank Corp.

      1.51   

Mitsubishi Estate Co. Ltd.

      1.27   

FANUC Corp.

      1.26   
  

 

 

  

TOTAL

      23.98 % 
  

 

 

  
 

 

FUND PERFORMANCE OVERVIEW

      5   

Table of Contents

Shareholder Expenses (Unaudited)

iSHARES® MSCI JAPAN INDEX FUND

 

As a shareholder of the 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 the 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 September 1, 2012 to February 28, 2013.

ACTUAL EXPENSES

The first line 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 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 in the table below provides information about hypothetical account values and hypothetical expenses based on the 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 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.

 

      Beginning
Account Value
(9/1/12)		      Ending
Account Value
(2/28/13)		      Annualized
Expense Ratio		     Expenses Paid
During Period a		  

Actual

    $ 1,000.00       $ 1,148.50         0.51 %    $ 2.72   

Hypothetical (5% return before expenses)

      1,000.00         1,022.30         0.51        2.56   

 

a 

Expenses are calculated using the 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 (181 days) and divided by the number of days in the year (365 days).

 

 

6    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited)

iSHARES® MSCI JAPAN INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

COMMON STOCKS — 99.59%

  

ADVERTISING — 0.34%

  

Dentsu Inc.

     498,000      $ 15,567,223   

Hakuhodo DY Holdings Inc.

     69,720        5,320,061   
   

 

 

  
      20,887,284   

AGRICULTURE — 1.24%

    

Japan Tobacco Inc.

     2,390,400        75,784,956   
   

 

 

  
      75,784,956   

AIRLINES — 0.26%

    

All Nippon Airways Co. Ltd.a

     2,988,000        6,153,479   

Japan Airlines Co. Ltd.b

     199,200        9,500,109   
   

 

 

  
      15,653,588   

APPAREL — 0.10%

    

ASICS Corp.

     398,400        6,287,344   
   

 

 

  
      6,287,344   

AUTO MANUFACTURERS — 11.83%

  

Daihatsu Motor Co. Ltd.

     341,000        6,959,712   

Fuji Heavy Industries Ltd.

     1,992,000        29,925,341   

Hino Motors Ltd.

     996,000        10,568,871   

Honda Motor Co. Ltd.

     4,282,800        160,384,500   

Isuzu Motors Ltd.

     2,988,000        18,460,438   

Mazda Motor Corp.b

     6,972,000        21,083,763   

Mitsubishi Motors Corp.b

     9,960,000        11,011,489   

Nissan Motor Co. Ltd.

     6,573,600        66,762,012   

Suzuki Motor Corp.

     996,000        23,933,796   

Toyota Motor Corp.

     7,270,800        375,518,773   
   

 

 

  
      724,608,695   

AUTO PARTS & EQUIPMENT — 3.52%

  

Aisin Seiki Co. Ltd.

     498,200        18,116,855   

Bridgestone Corp.

     1,693,200        52,194,459   

Denso Corp.

     1,294,800        54,593,237   

JTEKT Corp.

     597,600        5,985,068   

Koito Manufacturing Co. Ltd.

     100,000        1,637,763   

NGK Insulators Ltd.

     996,000        10,795,578   

NGK Spark Plug Co. Ltd.

     351,000        5,356,688   

NHK Spring Co. Ltd.

     398,400        3,484,812   

NOK Corp.

     298,800        4,139,024   

Stanley Electric Co. Ltd.

     363,600        6,360,832   

Sumitomo Electric Industries Ltd.

     1,992,000        23,318,448   

Sumitomo Rubber Industries Inc.

     498,000        7,794,407   

Toyoda Gosei Co. Ltd.

     199,200        4,622,666   
Security   Shares     Value  
   

Toyota Boshoku Corp.

     199,200      $ 2,729,122   

Toyota Industries Corp.

     398,400        14,293,345   
   

 

 

  
      215,422,304   

BANKS — 10.77%

    

Aozora Bank Ltd.

     1,992,000        6,067,115   

Bank of Kyoto Ltd. (The)

     996,000        8,744,418   

Bank of Yokohama Ltd. (The)

     2,988,000        15,448,472   

Chiba Bank Ltd. (The)

     1,992,000        12,760,373   

Fukuoka Financial Group Inc.

     1,998,000        9,117,256   

Gunma Bank Ltd. (The)

     996,000        5,440,971   

Hachijuni Bank Ltd. (The)

     996,000        5,354,606   

Hiroshima Bank Ltd. (The)

     996,000        4,199,480   

Iyo Bank Ltd. (The)

     996,000        8,528,506   

Joyo Bank Ltd. (The)

     1,992,000        9,996,705   

Mitsubishi UFJ Financial Group Inc.

     33,864,080        188,296,911   

Mizuho Financial Group Inc.

     60,855,680        134,560,576   

Nishi-Nippon City Bank Ltd. (The)

     1,992,000        5,246,651   

Resona Holdings Inc.

     4,980,000        22,940,603   

Seven Bank Ltd.

     1,494,000        3,951,181   

Shinsei Bank Ltd.

     3,984,000        8,809,191   

Shizuoka Bank Ltd. (The)

     1,992,000        19,885,454   

Sumitomo Mitsui Financial Group Inc.

     3,585,600        144,185,736   

Sumitomo Mitsui Trust Holdings Inc.

     7,974,320        31,115,925   

Suruga Bank Ltd.

     996,000        14,703,577   

Yamaguchi Financial Group Inc.

     55,000        516,258   
   

 

 

  
      659,869,965   

BEVERAGES — 0.91%

    

Asahi Group Holdings Ltd.

     996,000        25,261,652   

Coca-Cola West Co. Ltd.

     99,600        1,713,258   

Kirin Holdings Co. Ltd.

     1,992,000        29,040,104   
   

 

 

  
      56,015,014   

BUILDING MATERIALS — 1.32%

    

Asahi Glass Co. Ltd.

     2,988,000        20,403,642   

Daikin Industries Ltd.

     597,600        22,249,686   

LIXIL Group Corp.

     697,200        14,358,118   

Rinnai Corp.

     99,600        7,179,059   

Taiheiyo Cement Corp.

     2,988,000        7,416,562   

TOTO Ltd.

     996,000        9,046,694   
   

 

 

  
      80,653,761   

CHEMICALS — 3.50%

    

Air Water Inc.

     78,000        1,061,869   

Asahi Kasei Corp.

     2,988,000        17,747,930   
 

 

SCHEDULE OF INVESTMENTS

      7   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI JAPAN INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Daicel Corp.

     996,000      $ 7,697,247   

Denki Kagaku Kogyo K.K.

     996,000        3,810,839   

Hitachi Chemical Co. Ltd.

     298,800        4,116,354   

JSR Corp.

     498,000        10,201,821   

Kaneka Corp.

     996,000        5,538,131   

Kansai Paint Co. Ltd.

     95,000        1,011,164   

Kuraray Co. Ltd.

     896,400        12,242,185   

Mitsubishi Chemical Holdings Corp.

     3,486,000        16,436,267   

Mitsubishi Gas Chemical Co. Inc.

     996,000        7,081,899   

Mitsui Chemicals Inc.

     1,992,000        4,750,054   

Nitto Denko Corp.

     398,400        23,534,359   

Shin-Etsu Chemical Co. Ltd.

     1,095,600        67,688,272   

Showa Denko K.K.

     3,984,000        6,218,253   

Sumitomo Chemical Co. Ltd.

     3,984,000        11,831,953   

Taiyo Nippon Sanso Corp.

     996,000        7,027,921   

Ube Industries Ltd.

     2,988,000        6,347,800   
   

 

 

  
      214,344,318   

COMMERCIAL SERVICES — 0.98%

  

Benesse Holdings Inc.

     199,200        8,301,799   

Dai Nippon Printing Co. Ltd.

     996,000        8,798,396   

PARK24 Co. Ltd.

     199,200        3,657,542   

Secom Co. Ltd.

     498,000        25,693,475   

Toppan Printing Co. Ltd.

     1,992,000        13,472,881   
   

 

 

  
      59,924,093   

COMPUTERS — 0.77%

  

Fujitsu Ltd.

     4,980,000        22,994,580   

Itochu Techno-Solutions Corp.

     99,600        4,372,209   

NTT Data Corp.

     2,988        9,531,416   

TDK Corp.

     298,800        10,363,755   
   

 

 

  
      47,261,960   

COSMETICS & PERSONAL CARE — 1.21%

  

Kao Corp.

     1,394,400        44,797,329   

Shiseido Co. Ltd.

     896,400        11,940,988   

Unicharm Corp.

     298,800        17,391,676   
   

 

 

  
      74,129,993   

DISTRIBUTION & WHOLESALE — 4.50%

  

Hitachi High-Technologies Corp.

     199,200        4,136,865   

ITOCHU Corp.

     3,984,000        46,205,073   

Marubeni Corp.

     3,984,000        29,234,425   

Mitsubishi Corp.

     3,685,200        73,456,350   

Mitsui & Co. Ltd.

     4,581,600        68,232,369   

Sojitz Corp.

     3,087,600        4,752,213   
Security   Shares     Value  
   

Sumitomo Corp.

     2,988,000      $ 36,726,555   

Toyota Tsusho Corp.

     498,000        12,749,577   
   

 

 

  
      275,493,427   

DIVERSIFIED FINANCIAL SERVICES — 2.27%

  

Acom Co. Ltd.b

     99,600        2,477,585   

AEON Credit Service Co. Ltd.a

     199,270        4,661,009   

Credit Saison Co. Ltd.

     398,400        8,506,915   

Daiwa Securities Group Inc.

     3,984,000        24,743,464   

Japan Exchange Group Inc.

     49,800        3,810,839   

Mitsubishi UFJ Lease & Finance Co. Ltd.

     159,360        7,401,448   

Nomura Holdings Inc.

     9,561,600        55,135,175   

ORIX Corp.

     288,840        32,309,005   
   

 

 

  
      139,045,440   

ELECTRIC — 1.61%

  

Chubu Electric Power Co. Inc.

     1,693,200        21,325,584   

Chugoku Electric Power Co. Inc. (The)

     796,800        10,061,478   

Electric Power Development Co. Ltd.

     298,800        7,708,043   

Hokkaido Electric Power Co. Inc.

     498,000        4,431,585   

Hokuriku Electric Power Co.

     398,400        4,598,916   

Kansai Electric Power Co. Inc. (The)

     1,992,000        17,272,924   

Kyushu Electric Power Co. Inc.

     1,095,600        10,556,996   

Shikoku Electric Power Co. Inc.

     398,400        4,901,192   

Tohoku Electric Power Co. Inc.b

     1,195,200        9,288,515   

Tokyo Electric Power Co. Inc.a,b

     3,784,800        8,614,871   
   

 

 

  
      98,760,104   

ELECTRICAL COMPONENTS & EQUIPMENT — 2.49%

  

Brother Industries Ltd.

     597,600        6,283,026   

Casio Computer Co. Ltd.

     597,600        4,754,372   

Furukawa Electric Co. Ltd.b

     1,992,000        4,534,143   

GS Yuasa Corp.a

     996,000        4,339,822   

Hitachi Ltd.

     11,952,000        67,364,405   

Mabuchi Motor Co. Ltd.

     99,600        4,922,783   

Mitsubishi Electric Corp.

     4,980,000        40,753,306   

Nidec Corp.

     298,800        17,618,383   

Ushio Inc.

     199,200        2,197,980   
   

 

 

  
      152,768,220   

ELECTRONICS — 4.03%

  

Advantest Corp.

     398,400        5,743,247   

Hamamatsu Photonics K.K.

     199,200        7,945,545   

Hirose Electric Co. Ltd.

     99,600        12,091,047   

Hoya Corp.

     1,095,600        21,113,991   
 

 

8    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI JAPAN INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

IBIDEN Co. Ltd.

     298,800      $ 4,699,315   

Keyence Corp.

     109,026        30,854,854   

Kyocera Corp.

     398,400        34,804,943   

Murata Manufacturing Co. Ltd.

     498,000        32,224,799   

NEC Corp.b

     6,237,000        15,480,956   

Nippon Electric Glass Co. Ltd.

     996,500        4,925,255   

Omron Corp.

     498,000        12,118,036   

Toshiba Corp.

     10,956,000        50,706,829   

Yaskawa Electric Corp.

     996,000        9,025,103   

Yokogawa Electric Corp.

     498,000        5,025,341   
   

 

 

  
      246,759,261   

ENGINEERING & CONSTRUCTION — 1.01%

  

Chiyoda Corp.

     235,000        2,947,052   

JGC Corp.

     996,000        27,615,088   

Kajima Corp.

     1,992,000        5,915,977   

Obayashi Corp.

     1,992,000        10,298,981   

Shimizu Corp.

     1,992,000        6,434,164   

Taisei Corp.

     2,988,000        8,873,965   
   

 

 

  
      62,085,227   

ENTERTAINMENT — 0.37%

  

Oriental Land Co. Ltd.

     99,600        14,779,146   

Sankyo Co. Ltd.

     99,600        4,215,673   

Toho Co. Ltd.

     199,200        3,847,544   
   

 

 

  
      22,842,363   

ENVIRONMENTAL CONTROL — 0.10%

  

Kurita Water Industries Ltd.

     298,800        5,998,023   
   

 

 

  
      5,998,023   

FOOD — 1.29%

  

Ajinomoto Co. Inc.

     1,992,000        26,535,530   

Kikkoman Corp.

     996,000        15,556,427   

Meiji Holdings Co. Ltd.

     199,228        8,616,082   

Nisshin Seifun Group Inc.

     498,000        6,563,711   

Nissin Foods Holdings Co. Ltd.

     199,200        7,956,341   

Toyo Suisan Kaisha Ltd.

     89,000        2,619,066   

Yakult Honsha Co. Ltd.a

     298,800        11,157,230   
   

 

 

  
      79,004,387   

FOREST PRODUCTS & PAPER — 0.21%

  

Nippon Paper Group Inc.a

     298,800        5,227,219   

Oji Holdings Corp.

     1,992,000        7,621,678   
   

 

 

  
      12,848,897   
Security   Shares     Value  
   

GAS — 0.96%

    

Osaka Gas Co. Ltd.

     4,980,000      $ 19,432,040   

Toho Gas Co. Ltd.

     996,000        5,527,336   

Tokyo Gas Co. Ltd.

     6,972,000        33,854,931   
   

 

 

  
      58,814,307   

HAND & MACHINE TOOLS — 0.64%

    

Fuji Electric Co. Ltd.

     996,000        2,860,828   

Makita Corp.

     298,800        13,602,428   

SMC Corp.

     99,600        17,359,289   

THK Co. Ltd.

     299,400        5,617,401   
   

 

 

  
      39,439,946   

HEALTH CARE — PRODUCTS — 0.48%

  

Shimadzu Corp.

     236,000        1,498,981   

Sysmex Corp.

     199,200        10,493,302   

Terumo Corp.

     398,400        17,575,200   
   

 

 

  
      29,567,483   

HEALTH CARE — SERVICES — 0.16%

  

Miraca Holdings Inc.

     199,200        9,662,042   
   

 

 

  
      9,662,042   

HOME BUILDERS — 0.65%

    

Daiwa House Industry Co. Ltd.

     996,000        18,374,073   

Sekisui Chemical Co. Ltd.

     1,003,000        9,773,434   

Sekisui House Ltd.

     996,000        11,583,655   
   

 

 

  
      39,731,162   

HOME FURNISHINGS — 1.42%

    

Panasonic Corp.

     5,776,815        41,826,495   

Sharp Corp.a

     1,992,000        6,347,800   

Sony Corp.

     2,689,200        39,000,104   
   

 

 

  
      87,174,399   

INSURANCE — 2.55%

    

Dai-ichi Life Insurance Co. Ltd. (The)

     21,912        30,875,352   

MS&AD Insurance Group Holdings Inc.

     1,294,840        26,918,525   

NKSJ Holdings Inc.

     896,450        19,073,611   

Sony Financial Holdings Inc.

     498,000        7,902,363   

T&D Holdings Inc.

     1,494,000        17,812,703   

Tokio Marine Holdings Inc.

     1,892,400        53,699,363   
   

 

 

  
      156,281,917   

INTERNET — 1.00%

    

Dena Co. Ltd.a

     291,400        8,212,010   

Gree Inc.a

     291,400        3,562,749   
 

 

SCHEDULE OF INVESTMENTS

      9   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI JAPAN INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

M3 Inc.

     996      $ 1,722,974   

Nexon Co. Ltd.

     298,800        2,723,724   

Rakuten Inc.

     1,892,400        16,429,790   

SBI Holdings Inc.

     521,010        4,156,334   

Trend Micro Inc.

     298,800        8,485,324   

Yahoo! Japan Corp.

     37,848        16,101,604   
   

 

 

  
      61,394,509   

IRON & STEEL — 1.74%

    

Daido Steel Co. Ltd.

     996,000        5,322,220   

Hitachi Metals Ltd.

     242,000        2,274,160   

Japan Steel Works Ltd. (The)

     996,000        5,851,203   

JFE Holdings Inc.

     1,294,850        27,887,134   

Kobe Steel Ltd.b

     5,976,000        8,096,683   

Nippon Steel & Sumitomo Metal Corp.

     19,920,705        54,195,718   

Yamato Kogyo Co. Ltd.

     99,600        2,864,067   
   

 

 

  
      106,491,185   

LEISURE TIME — 0.59%

    

Sega Sammy Holdings Inc.

     498,000        9,235,617   

Shimano Inc.

     199,200        14,358,118   

Yamaha Corp.

     398,400        3,977,091   

Yamaha Motor Co. Ltd.

     697,200        8,373,050   
   

 

 

  
      35,943,876   

MACHINERY — 4.31%

    

Amada Co. Ltd.

     996,000        6,531,324   

FANUC Corp.

     498,000        77,242,359   

Hitachi Construction Machinery Co. Ltd.

     298,800        6,895,135   

IHI Corp.

     2,988,000        8,420,551   

Kawasaki Heavy Industries Ltd.

     3,984,000        12,738,782   

Komatsu Ltd.

     2,490,000        63,100,152   

Kubota Corp.

     2,988,000        36,240,754   

Mitsubishi Heavy Industries Ltd.

     7,968,000        44,391,416   

Nabtesco Corp.

     199,200        3,689,928   

Sumitomo Heavy Industries Ltd.

     996,000        4,415,391   
   

 

 

  
      263,665,792   

MANUFACTURING — 1.11%

    

FUJIFILM Holdings Corp.

     1,195,200        23,059,354   

Konica Minolta Holdings Inc.

     1,494,000        11,464,904   

Nikon Corp.

     896,400        20,209,321   

Olympus Corp.b

     597,600        13,168,446   
   

 

 

  
      67,902,025   
Security   Shares     Value  
   

MEDIA — 0.12%

    

Jupiter Telecommunications Co. Ltd.

     5,709      $ 7,611,175   
   

 

 

  
      7,611,175   

METAL FABRICATE & HARDWARE — 0.17%

  

  

Maruichi Steel Tube Ltd.

     99,600        2,447,357   

NSK Ltd.

     996,000        7,805,203   
   

 

 

  
      10,252,560   

MINING — 0.48%

  

Mitsubishi Materials Corp.

     2,988,000        9,133,059   

Sumitomo Metal Mining Co. Ltd.

     1,284,000        20,333,015   
   

 

 

  
      29,466,074   

OFFICE & BUSINESS EQUIPMENT — 2.13%

  

Canon Inc.

     2,988,050        108,983,181   

Ricoh Co. Ltd.

     1,992,000        21,461,608   
   

 

 

  
      130,444,789   

OIL & GAS — 1.56%

    

Cosmo Oil Co. Ltd.

     996,000        2,353,436   

Idemitsu Kosan Co. Ltd.

     99,600        9,100,672   

INPEX Corp.

     5,976        31,933,319   

Japan Petroleum Exploration Co. Ltd.

     99,600        3,794,646   

JX Holdings Inc.

     5,776,895        35,440,305   

Showa Shell Sekiyu K.K.

     398,400        2,897,533   

TonenGeneral Sekiyu K.K.

     996,000        9,931,931   
   

 

 

  
      95,451,842   

PACKAGING & CONTAINERS — 0.07%

  

Toyo Seikan Kaisha Ltd.

     298,800        4,362,493   
   

 

 

  
      4,362,493   

PHARMACEUTICALS — 6.08%

  

Alfresa Holdings Corp.

     99,600        4,928,181   

Astellas Pharma Inc.

     1,195,230        64,904,642   

Chugai Pharmaceutical Co. Ltd.

     597,600        12,987,080   

Daiichi Sankyo Co. Ltd.

     1,792,869        32,238,995   

Dainippon Sumitomo Pharma Co. Ltd.

     398,400        5,782,111   

Eisai Co. Ltd.

     697,200        31,210,015   

Hisamitsu Pharmaceutical Co. Inc.

     99,600        5,797,225   

Kyowa Hakko Kirin Co. Ltd.

     996,000        10,482,506   

Medipal Holdings Corp.

     398,400        5,173,241   

Mitsubishi Tanabe Pharma Corp.

     498,000        7,098,092   

Ono Pharmaceutical Co. Ltd.

     199,200        10,622,849   

Otsuka Holdings Co. Ltd.

     996,000        32,041,275   

Santen Pharmaceutical Co. Ltd.

     199,200        8,960,330   
 

 

10    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI JAPAN INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Shionogi & Co. Ltd.

     697,200      $ 14,274,992   

Suzuken Co. Ltd.

     199,200        6,963,148   

Taisho Pharmaceutical Holdings Co. Ltd.

     99,600        6,898,374   

Takeda Pharmaceutical Co. Ltd.

     2,091,600        108,706,070   

Tsumura & Co.

     99,600        3,503,165   
   

 

 

  
      372,572,291   

REAL ESTATE — 3.42%

  

AEON Mall Co. Ltd.

     199,200        4,961,648   

Daito Trust Construction Co. Ltd.

     199,200        17,920,659   

Hulic Co. Ltd.

     597,600        4,501,756   

Mitsubishi Estate Co. Ltd.

     3,094,000        77,467,375   

Mitsui Fudosan Co. Ltd.

     2,098,000        53,621,114   

Nomura Real Estate Holdings Inc.

     298,800        5,392,391   

NTT Urban Development Corp.

     3,984        4,076,410   

Sumitomo Realty & Development Co. Ltd.

     996,000        33,844,136   

Tokyu Land Corp.

     996,000        7,556,904   
   

 

 

  
      209,342,393   

REAL ESTATE INVESTMENT TRUSTS — 0.90%

  

Japan Prime Realty Investment Corp.

     1,992        5,892,226   

Japan Real Estate Investment Corp.

     996        10,979,103   

Japan Retail Fund Investment Corp.

     4,980        9,780,793   

Nippon Building Fund Inc.

     1,992        22,390,028   

Nomura Real Estate Office Fund Inc.

     996        6,142,684   
   

 

 

  
      55,184,834   

RETAIL — 3.44%

  

ABC-MART Inc.

     99,600        3,492,369   

AEON Co. Ltd.

     1,593,600        17,998,387   

Citizen Holdings Co. Ltd.

     697,200        3,801,123   

Don Quijote Co. Ltd.

     99,600        3,940,386   

FamilyMart Co. Ltd.

     199,200        8,431,346   

Fast Retailing Co. Ltd.

     119,300        32,883,146   

Isetan Mitsukoshi Holdings Ltd.

     896,460        9,969,304   

J. Front Retailing Co. Ltd.

     996,000        5,915,977   

Lawson Inc.

     199,200        14,876,306   

Marui Group Co. Ltd.

     597,600        5,123,581   

McDonald’s Holdings Co. (Japan) Ltd.

     199,200        5,013,466   

Nitori Holdings Co. Ltd.

     99,600        7,459,744   

Seven & I Holdings Co. Ltd.

     1,992,080        58,428,013   

Shimamura Co. Ltd.

     99,600        10,223,412   

Takashimaya Co. Ltd.

     996,000        7,837,590   
Security   Shares     Value  
   

USS Co. Ltd.

     59,760      $ 6,600,416   

Yamada Denki Co. Ltd.

     229,080        8,367,652   
   

 

 

  
      210,362,218   

SEMICONDUCTORS — 0.53%

  

Rohm Co. Ltd.

     298,800        10,639,042   

Sumco Corp.b

     298,800        3,002,250   

Tokyo Electron Ltd.

     398,452        18,570,817   
   

 

 

  
      32,212,109   

SOFTWARE — 0.24%

  

Konami Corp.

     298,800        5,832,851   

Nomura Research Institute Ltd.

     199,200        4,534,143   

Oracle Corp. Japan

     99,600        4,210,275   
   

 

 

  
      14,577,269   

STORAGE & WAREHOUSING — 0.06%

  

Mitsubishi Logistics Corp.

     242,000        3,952,894   
   

 

 

  
      3,952,894   

TELECOMMUNICATIONS — 4.31%

  

KDDI Corp.

     697,200        52,596,055   

Nippon Telegraph and Telephone Corp.

     1,195,200        55,057,446   

NTT DOCOMO Inc.

     40,836        63,471,519   

SoftBank Corp.

     2,490,000        92,707,024   
   

 

 

  
      263,832,044   

TEXTILES — 0.52%

  

Teijin Ltd.

     2,988,000        6,963,148   

Toray Industries Inc.

     3,984,000        24,657,099   
   

 

 

  
      31,620,247   

TOYS, GAMES & HOBBIES — 0.67%

  

Namco Bandai Holdings Inc.

     498,098        7,957,907   

Nintendo Co. Ltd.

     298,800        29,018,513   

Sanrio Co. Ltd.a

     99,600        3,956,579   
   

 

 

  
    40,932,999   

TRANSPORTATION — 4.65%

  

Central Japan Railway Co.

     398,400        38,907,262   

East Japan Railway Co.

     896,400        66,457,576   

Hankyu Hanshin Holdings Inc.

     2,988,000        16,484,847   

Kamigumi Co. Ltd.

     996,000        8,668,849   

Keikyu Corp.

     1,000,000        8,877,087   

Keio Corp.

     1,992,000        15,999,046   

Keisei Electric Railway Co. Ltd.

     120,000        1,151,095   

Kintetsu Corp.a

     4,251,000        17,969,759   
 

 

SCHEDULE OF INVESTMENTS

      11   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI JAPAN INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Mitsui O.S.K. Lines Ltd.

     2,988,000      $ 10,525,688   

Nippon Express Co. Ltd.

     1,992,000        8,787,600   

Nippon Yusen K.K.

     3,984,000        10,061,479   

Odakyu Electric Railway Co. Ltd.

     1,106,000        11,724,128   

Tobu Railway Co. Ltd.

     2,988,000        16,484,847   

Tokyu Corp.

     2,988,000        17,974,637   

West Japan Railway Co.

     398,400        17,683,156   

Yamato Holdings Co. Ltd.

     996,000        16,743,941   
   

 

 

  
    284,500,997   
   

 

 

  

TOTAL COMMON STOCKS

  

  

(Cost: $7,228,885,039)

  

     6,099,196,495   

SHORT-TERM INVESTMENTS — 1.10%

  

MONEY MARKET FUNDS — 1.10%

    

BlackRock Cash Funds: Institutional,
SL Agency Shares

   

  

0.21%c,d,e

     54,854,198        54,854,198   

BlackRock Cash Funds: Prime,
SL Agency Shares

    

0.18%c,d,e

     3,971,625        3,971,625   

BlackRock Cash Funds: Treasury,
SL Agency Shares

    

0.04%c,d

     8,304,315        8,304,315   
   

 

 

  
    67,130,138   
   

 

 

  

TOTAL SHORT-TERM INVESTMENTS

  

  

(Cost: $67,130,138)

  

     67,130,138   
   

 

 

  

TOTAL INVESTMENTS
IN SECURITIES — 100.69%

   

  

(Cost: $7,296,015,177)

  

     6,166,326,633   

Other Assets, Less Liabilities — (0.69)%

  

     (42,182,509 ) 
   

 

 

  

NET ASSETS — 100.00%

  

   $ 6,124,144,124   
   

 

 

  

 

a 

All or a portion of this security represents a security on loan. See Note 5.

b 

Non-income earning security.

c 

Affiliated issuer. See Note 2.

d 

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

e 

All or a portion of this security represents an investment of securities lending collateral. See Note 5.

Financial futures contracts purchased as of February 28, 2013 were as follows:

 

Number of
Contracts		      Issue
(Expiration)		   Exchange   Notional
Value		     Net
Unrealized
Appreciation
(Depreciation)		  
  178       TOPIX Index (Mar. 2013)   Tokyo Stock     $18,733,796        $2,484,966   
                              

See notes to financial statements.

 

 

12    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Statement of Assets and Liabilities (Unaudited)

iSHARES® MSCI JAPAN INDEX FUND

February 28, 2013

 

 

ASSETS

  

Investments, at cost:

   

Unaffiliated

    $ 7,228,885,039   

Affiliated (Note 2)

      67,130,138   
  

 

 

  

Total cost of investments

    $ 7,296,015,177   
  

 

 

  

Investments in securities, at fair value (including securities on loana) (Note 1):

   

Unaffiliated

    $ 6,099,196,495   

Affiliated (Note 2)

      67,130,138   
  

 

 

  

Total fair value of investments

      6,166,326,633   

Foreign currency, at valueb

      10,370,684   

Receivables:

   

Investment securities sold

      5,474,125   

Dividends and interest

      6,590,909   

Futures variation margin

      2,484,966   
  

 

 

  

Total Assets

      6,191,247,317   
  

 

 

  

LIABILITIES

   

Payables:

   

Investment securities purchased

      3,810,305   

Foreign currency overdraft at broker

      1,648,588   

Collateral for securities on loan (Note 5)

      58,825,823   

Capital shares redeemed

      577,499   

Investment advisory fees (Note 2)

      2,240,978   
  

 

 

  

Total Liabilities

      67,103,193   
  

 

 

  

NET ASSETS

    $ 6,124,144,124   
  

 

 

  

Net assets consist of:

   

Paid-in capital

    $ 8,242,118,874   

Distributions in excess of net investment income

      (7,802,443 ) 

Accumulated net realized loss

      (982,275,897 ) 

Net unrealized depreciation on investments and translation of assets and liabilities in foreign currencies

      (1,127,896,410 ) 
  

 

 

  

NET ASSETS

    $ 6,124,144,124   
  

 

 

  

Shares outstandingc

      597,600,000   
  

 

 

  

Net asset value per share

    $ 10.25   
  

 

 

  

 

a 

Securities on loan with a value of $55,853,101. See Note 5.

b 

Cost of foreign currency: $9,060,202.

c 

$0.001 par value, number of shares authorized: 2,124,600,000.

See notes to financial statements.

 

FINANCIAL STATEMENTS

      13   

Table of Contents

Statement of Operations (Unaudited)

iSHARES® MSCI JAPAN INDEX FUND

Six months ended February 28, 2013

 

 

NET INVESTMENT INCOME

  

Dividends — unaffiliateda

    $ 48,426,582   

Interest — affiliated (Note 2)

      1,894   

Securities lending income — affiliated (Note 2)

      893,267   
  

 

 

  

Total investment income

      49,321,743   
  

 

 

  

EXPENSES

   

Investment advisory fees (Note 2)

      12,146,525   
  

 

 

  

Total expenses

      12,146,525   
  

 

 

  

Net investment income

      37,175,218   
  

 

 

  

NET REALIZED AND UNREALIZED GAIN (LOSS)

   

Net realized gain (loss) from:

   

Investments — unaffiliated

      (83,127,508 ) 

In-kind redemptions — unaffiliated

      (25,473,418 ) 

Futures contracts

      3,218,936   

Foreign currency transactions

      (3,151,736 ) 
  

 

 

  

Net realized loss

      (108,533,726 ) 
  

 

 

  

Net change in unrealized appreciation/depreciation on:

   

Investments

      769,448,208   

Futures contracts

      2,653,039   

Translation of assets and liabilities in foreign currencies

      (830,186 ) 
  

 

 

  

Net change in unrealized appreciation/depreciation

      771,271,061   
  

 

 

  

Net realized and unrealized gain

      662,737,335   
  

 

 

  

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

    $ 699,912,553   
  

 

 

  

 

a 

Net of foreign withholding tax of $3,630,380.

See notes to financial statements.

 

14    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Statements of Changes in Net Assets

iSHARES® MSCI JAPAN INDEX FUND

 

    

Six months

ended

February 28, 2013

(Unaudited)

    

Year ended

August 31, 2012

  

INCREASE (DECREASE) IN NET ASSETS

  

  

OPERATIONS:

  

  

Net investment income

   $ 37,175,218      $ 106,977,074   

Net realized loss

     (108,533,726 )      (263,209,688 ) 

Net change in unrealized appreciation/depreciation

     771,271,061        (266,966,709 ) 
 

 

 

    

 

 

  

Net increase (decrease) in net assets resulting from operations

     699,912,553        (423,199,323 ) 
 

 

 

    

 

 

  

DISTRIBUTIONS TO SHAREHOLDERS:

    

From net investment income

     (48,420,838 )      (109,422,889 ) 
 

 

 

    

 

 

  

Total distributions to shareholders

     (48,420,838 )      (109,422,889 ) 
 

 

 

    

 

 

  

CAPITAL SHARE TRANSACTIONS:

    

Proceeds from shares sold

     1,998,557,619        758,956,904   

Cost of shares redeemed

     (1,154,939,578 )      (2,791,809,212 ) 
 

 

 

    

 

 

  

Net increase (decrease) in net assets from capital share transactions

     843,618,041        (2,032,852,308 ) 
 

 

 

    

 

 

  

INCREASE (DECREASE) IN NET ASSETS

     1,495,109,756        (2,565,474,520 ) 

NET ASSETS

    

Beginning of period

     4,629,034,368        7,194,508,888   
 

 

 

    

 

 

  

End of period

   $ 6,124,144,124      $ 4,629,034,368   
 

 

 

    

 

 

  

Undistributed (distributions in excess of) net investment income
included in net assets at end of period

   $ (7,802,443 )    $ 3,443,177   
 

 

 

    

 

 

  

SHARES ISSUED AND REDEEMED

    

Shares sold

     207,000,000        76,800,000   

Shares redeemed

     (122,400,000 )      (298,200,000 ) 
 

 

 

    

 

 

  

Net increase (decrease) in shares outstanding

     84,600,000        (221,400,000 ) 
 

 

 

    

 

 

  

See notes to financial statements.

 

FINANCIAL STATEMENTS

      15   

Table of Contents

Financial Highlights

iSHARES® MSCI JAPAN INDEX FUND

(For a share outstanding throughout each period)

 

     

Six months
ended

Feb. 28, 2013
(Unaudited)

    

Year ended

Aug. 31, 2012

    

Year ended

Aug. 31, 2011

     Year ended
Aug. 31, 2010		    

Year ended

Aug. 31, 2009

    

Year ended

Aug. 31, 2008

  

Net asset value, beginning of period

    $ 9.02      $ 9.80      $ 9.43      $ 10.24      $ 11.62      $ 14.07   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income from investment operations:

  

Net investment incomea

      0.07        0.18        0.16        0.12        0.13        0.14   

Net realized and unrealized gain (loss)b

      1.26        (0.77 )      0.37        (0.77 )      (1.39 )      (2.39 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      1.33        (0.59 )      0.53        (0.65 )      (1.26 )      (2.25 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Less distributions from:

             

Net investment income

      (0.10 )      (0.19 )      (0.16 )      (0.16 )      (0.12 )      (0.20 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (0.10 )      (0.19 )      (0.16 )      (0.16 )      (0.12 )      (0.20 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of period

    $ 10.25      $ 9.02      $ 9.80      $ 9.43      $ 10.24      $ 11.62   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return

      14.85 %c      (5.96 )%      5.54 %      (6.41 )%      (10.68 )%      (16.13 )% 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios/Supplemental data:

             

Net assets, end of period (000s)

    $ 6,124,144      $ 4,629,034      $ 7,194,509      $ 3,942,769      $ 6,164,170      $ 7,499,536   

Ratio of expenses to average net assetsd

      0.51 %      0.53 %      0.51 %      0.54 %      0.56 %      0.52 % 

Ratio of net investment income to average
net assetsd

      1.57 %      1.95 %      1.53 %      1.20 %      1.46 %      1.11 % 

Portfolio turnover ratee

      2 %      3 %      4 %      5 %      4 %      4 % 

 

a 

Based on average shares outstanding throughout each period.

b 

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.

c 

Not annualized.

d 

Annualized for periods of less than one year.

e 

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.

 

 

16    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Notes to Financial Statements (Unaudited)

iSHARES® MSCI JAPAN INDEX FUND

 

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 fund (the “Fund”):

 

iShares MSCI Index Fund   

Diversification

Classification

Japan

    Diversified

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 the 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 the Fund’s investment objective.

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

 

1. SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies are consistently followed by the Fund in the preparation of its 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.

SECURITY VALUATION

The Fund’s investments are valued at fair value each day that the Fund’s listing exchange is open. 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 BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) provides oversight of the valuation of

 

NOTES TO FINANCIAL STATEMENTS

      17   

Table of Contents

Notes to Financial Statements (Unaudited) (Continued)

iSHARES® MSCI JAPAN INDEX FUND

 

investments for the Fund. The investments of the Fund are valued pursuant to policies and procedures developed by the Global Valuation Committee and approved by the Board of Directors of the Company (the “Board”).

 

  •  

Equity investments traded on a recognized securities exchange are valued at that day’s last reported trade price or the official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price.

 

  •  

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

 

  •  

Financial futures contracts are valued at that day’s last reported settlement price on the exchange where the contract is traded.

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 deemed relevant by the Global Valuation Committee, in accordance with policies approved by the Board. These factors include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other factors, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or other default rates. Valuations based on such factors are reported to the Board on a quarterly basis.

The Global Valuation Committee employs various methods for calibrating valuation approaches for investments where an active market does not exist, including regular due diligence of the Company’s pricing vendors, a regular review of key inputs and assumptions, transactional back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing or stale prices and large movements in market values, and reviews of market related activity.

Fair value pricing could result in a difference between the prices used to calculate the 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 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 Fund’s perceived risk of that instrument. 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 (such as exchange rates, financing terms, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and

 

  •  

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

 

18    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Notes to Financial Statements (Unaudited) (Continued)

iSHARES® MSCI JAPAN INDEX FUND

 

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. In accordance with the Company’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period.

As of February 28, 2013, the value of each of the Fund’s investments was classified as Level 1. The breakdown of the Fund’s investments into major categories is disclosed in its schedule of investments.

SECURITY TRANSACTIONS AND INCOME RECOGNITION

Security transactions are accounted for on trade date. Dividend income is recognized on the ex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities as of February 28, 2013 are reflected in dividends receivable. Non-cash dividends received in the form of stock in an elective dividend, if any, are recorded as dividend income at fair value. Distributions received by the Fund may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. Interest income is accrued daily. Realized gains and losses on investment transactions are determined using the specific identification method.

FOREIGN CURRENCY TRANSLATION

The accounting records of the Fund 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.

The 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 Fund as a component of realized and unrealized gains and losses from investments for financial reporting purposes.

FOREIGN TAXES

The Fund may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Fund invests. These foreign taxes, if any, are paid by the Fund and are reflected in its statement 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 stock dividends are presented as “other foreign taxes,” and foreign taxes on capital gains from sales of investments and foreign taxes on foreing currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable as of February 28, 2013, if any, are disclosed in the Fund’s statement of assets and liabilities.

DISTRIBUTIONS TO SHAREHOLDERS

Dividends and distributions paid by the 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 Fund.

 

NOTES TO FINANCIAL STATEMENTS

      19   

Table of Contents

Notes to Financial Statements (Unaudited) (Continued)

iSHARES® MSCI JAPAN INDEX FUND

 

FEDERAL INCOME TAXES

The Fund is treated as an entity separate from the Company’s other funds for federal income tax purposes. It is the policy of the 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 December 2011, the Financial Accounting Standards Board issued guidance to enhance current disclosure requirements on offsetting of certain assets and liabilities and enable financial statement users to compare financial statements prepared under U.S. GAAP and International Financial Reporting Standards (IFRS). The new disclosures are required for investments and derivative financial instruments subject to master netting agreements or similar agreements and require an entity to disclose both gross and net information about such investments and transactions eligible for offset in the statement of assets and liabilities. In addition, the standard requires disclosure of collateral received and posted in connection with master netting agreements or similar agreements. The guidance is effective for financial statements for fiscal years beginning after January 1, 2013, and interim periods within those fiscal years. Management is evaluating the impact of this guidance on the Fund’s financial statements and disclosures.

 

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 the 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 Fund, except interest, taxes, brokerage commissions and other expenses connected with the execution of portfolio transactions, distribution fees, litigation expenses and any extraordinary expenses.

For its investment advisory services to the Fund, BFA is entitled to an annual investment advisory fee based on the Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:

 

Investment Advisory Fee      Aggregate Average Daily Net Assets
    0.59 %     

First $7 billion

    0.54       

Over $7 billion, up to and including $11 billion

    0.49       

Over $11 billion, up to and including $24 billion

    0.44       

Over $24 billion, up to and including $48 billion

    0.40       

Over $48 billion

The U.S. Securities and Exchange Commission has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”) to serve as securities lending agent for the Fund, subject to applicable conditions. BTC is an affiliate of BFA. Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, and any fees or other payments to and from borrowers of securities. The Fund retains 65% of securities lending income and pays a fee to BTC equal to 35% of such income. The Fund benefits from a borrower default indemnity provided by BlackRock. As securities lending agent, BTC bears all operational costs directly related to securities lending as well as the cost of borrower default indemnification. BTC is also responsible for fees and expenses incurred by the Fund as a result of the investment of cash collateral received for securities on loan in a money market fund managed by BFA or an affiliate.

 

20    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Notes to Financial Statements (Unaudited) (Continued)

iSHARES® MSCI JAPAN INDEX FUND

 

For the six months ended February 28, 2013, BTC earned securities lending agent fees from the Fund in the amount of $480,990.

BlackRock Investments, LLC, an affiliate of BFA, is the distributor for the Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Fund.

The 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 statement of operations.

The PNC Financial Services Group, Inc. is the largest stockholder of BlackRock and is considered to be an affiliate of the Fund for 1940 Act purposes.

Certain directors and officers of the Company are also officers of BTC and/or BFA.

 

3. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the six months ended February 28, 2013, were $85,739,364 and $94,847,156, respectively.

In-kind purchases and sales (see Note 4) for the six months ended February 28, 2013, were $1,963,654,342 and $1,135,971,436, respectively.

 

4. CAPITAL SHARE TRANSACTIONS

Capital shares are issued and redeemed by the 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 the Fund are not redeemable. Transactions in capital shares for the 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 may also 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.

 

5. LOANS OF PORTFOLIO SECURITIES

The Fund may lend its investment securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by the Fund is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter, at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund on the next business day. The risks of securities lending include the risk that the borrower may not provide additional collateral when required or

 

NOTES TO FINANCIAL STATEMENTS

      21   

Table of Contents

Notes to Financial Statements (Unaudited) (Continued)

iSHARES® MSCI JAPAN INDEX FUND

 

may not return the securities when due. To mitigate these risks, the Fund benefits from a borrower default indemnity provided by BlackRock. BlackRock’s indemnity allows for full replacement of securities lent. Any securities lending cash collateral may be reinvested in certain short-term instruments either directly on behalf of a fund or through one or more joint accounts or money market funds, including those managed by BFA or its affiliates. The Fund could suffer a loss if the value of an investment purchased with cash collateral falls below the value of the cash collateral received.

As of February 28, 2013, any securities on loan were collateralized by cash. The cash collateral received was invested in money market funds managed by BFA. The value of any securities on loan as of February 28, 2013 and the value of the related collateral are disclosed in the statement of assets and liabilities. Securities lending income, as disclosed in the statement of operations, represents the income earned from the investment of the cash collateral, net of fees and other payments to and from borrowers, and less the fees paid to BTC as securities lending agent.

 

6. 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 Fund. Because such gains or losses are not taxable to the Fund 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 Fund’s tax year. These reclassifications have no effect on net assets or net asset values per share.

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

As of August 31, 2012, the Fund’s fiscal year-end, the Fund had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:

 

Non-

Expiring a

    

Expiring

2013

    

Expiring

2014

    

Expiring

2015

    

Expiring

2016

    

Expiring

2017

    

Expiring

2018

    

Expiring

2019

    

Total

  
               
  $118,947,587      $ 8,733,802      $ 68,122,871      $ 27,817,841      $ 44,443,527      $ 116,295,478      $ 173,577,101      $ 139,228,194      $ 697,166,401   

 

  a   

Must be utilized prior to losses subject to expiration.

The Fund may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” The Fund may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.

As of February 28, 2013, the cost of investments for federal income tax purposes was $7,355,132,071. Net unrealized depreciation was $1,188,805,438, of which $263,188,756 represented gross unrealized appreciation on securities and $1,451,994,194 represented gross unrealized depreciation on securities.

Management has reviewed the tax positions as of February 28, 2013, inclusive of the open tax return years, and has determined that no provision for income tax is required in the Fund’s financial statements.

 

7. FINANCIAL FUTURES CONTRACTS

The Fund may purchase or sell financial futures contracts in an effort to help the Fund track its underlying index. A futures contract is a standardized, exchange-traded agreement to buy and sell a financial instrument at a set price on a future date. Upon entering into a futures contract, the Fund is required to pledge to the executing broker which holds segregated from its own assets, an amount of cash, U.S.

 

22    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Notes to Financial Statements (Unaudited) (Continued)

iSHARES® MSCI JAPAN INDEX FUND

 

government securities or other high-quality debt and equity securities equal to the minimum initial margin requirements of the exchange on which the contract is traded. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as margin variation and are recorded by the Fund as unrealized appreciation or depreciation. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Losses may arise if the value of a futures contract decreases due to an unfavorable change in the market rates or values of the underlying instrument during the term of the contract or if the counterparty does not perform under the contract. The use of futures contracts also involves the risk of an imperfect correlation in the movements in the price of futures contracts and the assets underlying such contracts.

The following table shows the value of futures contracts held by the Fund as of February 28, 2013 and the related locations in the statement of assets and liabilities, presented by risk exposure category:

 

Assets  

Equity contracts:
Variation margin/Net assets consist of — net unrealized appreciation (depreciation)a

    $ 2,484,966   
  

 

 

  
          

 

  a   

Represents cumulative appreciation of futures contracts as reported in the schedule of investments.

The following table shows the realized and unrealized gains (losses) on futures contracts held by the Fund during the six months ended February 28, 2013 and the related locations in the statement of operations, presented by risk exposure category:

 

      Net Realized
Gain (Loss)		      Net Change in  Unrealized
Appreciation/Depreciation		  

Equity contracts:

      

Futures contracts

    $ 3,218,936       $ 2,653,039   
  

 

 

     

 

 

  
                   

For the six months ended February 28, 2013, the average quarter-end number of contracts and notional value of open futures contracts for Fund were 229 and $22,220,588, respectively.

 

8. SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events on the Fund 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

      23   

Table of Contents

Supplemental Information (Unaudited)

iSHARES® MSCI JAPAN INDEX FUND

 

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 the 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		  
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		  
$ 0.09095       $ —       $ 0.01005       $ 0.10100         90 %      —   %      10 %      100 % 

 

24    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Notes:

 

 

NOTES

      25   

Table of Contents

Notes:

 

 

26    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents
LOGO    

 

For more information visit www.iShares.com or call 1-800-474-2737

 

 

This report is intended for the Fund’s 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 MSCI Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.

A description of the policies that the Fund uses to determine how to vote proxies relating to portfolio securities and information about how the Fund 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 Fund’s website at www.iShares.com; and on the U.S. Securities and Exchange Commission (SEC) website at www.sec.gov.

The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Form N-Q is 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 Fund also discloses its complete schedule of portfolio holdings on a daily and monthly basis on the Fund’s website.

©2013 BlackRock. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are their respective owners.

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iS-SAR-81-0213

Table of Contents

FEBRUARY 28, 2013

 

 

2013 SEMI-ANNUAL REPORT (UNAUDITED)

 

     LOGO

 

iShares, Inc.

 

Ø    

iShares MSCI Austria Capped Investable Market Index Fund  |  EWO  |  NYSE Arca

Ø    

iShares MSCI Belgium Capped Investable Market Index Fund  |  EWK  |  NYSE Arca

Ø    

iShares MSCI Emerging Markets Eastern Europe Index Fund  |  ESR  |  NYSE Arca

Ø    

iShares MSCI EMU Index Fund  |  EZU  |  NYSE Arca

Ø    

iShares MSCI France Index Fund  |  EWQ  |  NYSE Arca

Ø    

iShares MSCI Germany Index Fund  |  EWG  |  NYSE Arca

Ø    

iShares MSCI Italy Capped Index Fund  |  EWI  |  NYSE Arca

Ø    

iShares MSCI Netherlands Investable Market Index Fund  |  EWN  |  NYSE Arca

Ø    

iShares MSCI Spain Capped Index Fund  |  EWP  |  NYSE Arca

Ø    

iShares MSCI Sweden Index Fund  |  EWD  |  NYSE Arca

Ø    

iShares MSCI Switzerland Capped Index Fund  |  EWL  |  NYSE Arca

Ø    

iShares MSCI United Kingdom Index Fund  |  EWU  |  NYSE Arca

Table of Contents

Table of Contents

 

Fund Performance Overviews

      5   

Shareholder Expenses

      22   

Schedules of Investments

     24   

iShares MSCI Austria Capped Investable Market Index Fund

      24   

iShares MSCI Belgium Capped Investable Market Index Fund

      26   

iShares MSCI Emerging Markets Eastern Europe Index Fund

      28   

iShares MSCI EMU Index Fund

      30   

iShares MSCI France Index Fund

      34   

iShares MSCI Germany Index Fund

      37   

iShares MSCI Italy Capped Index Fund

      39   

iShares MSCI Netherlands Investable Market Index Fund

      41   

iShares MSCI Spain Capped Index Fund

      43   

iShares MSCI Sweden Index Fund

      45   

iShares MSCI Switzerland Capped Index Fund

      47   

iShares MSCI United Kingdom Index Fund

      49   

Financial Statements

      52   

Financial Highlights

      66   

Notes to Financial Statements

      78   

Supplemental Information

      90   

Table of Contents

Fund Performance Overview

iSHARES® MSCI AUSTRIA CAPPED INVESTABLE MARKET INDEX FUND

Performance as of February 28, 2013

 

Average Annual Total Returns
Year Ended 2/28/13   Five Years Ended 2/28/13   Ten Years Ended 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
11.37%   10.53%   11.28%   (8.70)%   (8.42)%   (9.33)%   9.85%   9.89%   9.56%
Cumulative Total Returns
Year Ended 2/28/13   Five Years Ended 2/28/13   Ten Years Ended 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
11.37%   10.53%   11.28%   (36.56)%   (35.59)%   (38.73)%   155.88%   156.88%   149.16%

Index performance through January 31, 2008 reflects the performance of the MSCI Austria IndexSM. Index performance beginning on February 1, 2008 through February 11, 2013 reflects the performance of the MSCI Austria Investable Market IndexSM. Index performance beginning on February 12, 2013 reflects the performance of the MSCI Austria IMI 25/50 Index.

“Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

Certain sectors and markets performed exceptionally well based on market conditions during the six-month period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.

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. 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.

 

FUND PERFORMANCE OVERVIEWS

      5   

Table of Contents

Fund Performance Overview (Continued)

iSHARES® MSCI AUSTRIA CAPPED INVESTABLE MARKET INDEX FUND

 

The iShares MSCI Austria Capped Investable Market Index Fund (the “Fund”), formerly the iShares MSCI Austria Investable Market Index Fund, seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI Austria IMI 25/50 Index (the “Index”). The Index is a free-float adjusted market capitalization-weighted index and consists of stocks traded primarily on the Vienna Stock Exchange. 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 February 28, 2013, the total return for the Fund was 25.13%, net of fees, while the total return for the Index was 25.51%*.

 

*

Index performance through February 11, 2013 reflects the performance of the MSCI Austria Investable Market IndexSM. Index performance beginning on February 12, 2013 reflects the performance of the MSCI Austria IMI 25/50 Index.

 

PORTFOLIO ALLOCATION

As of 2/28/13

 

Sector    Percentage of
Net Assets		  

Financial

      36.82 % 

Industrial

      28.19   

Energy

      14.32   

Basic Materials

      9.87   

Utilities

      4.85   

Communications

      3.50   

Consumer Non-Cyclical

      0.94   

Consumer Cyclical

      0.89   

Short-Term and Other Net Assets

      0.62   
  

 

 

  

TOTAL

      100.00 % 
  

 

 

  

TEN LARGEST FUND HOLDINGS

As of 2/28/13

 

Security    Percentage of
Net Assets		  

Erste Group Bank AG

      12.75 % 

OMV AG

      11.56   

Andritz AG

      8.80   

IMMOFINANZ AG

      6.31   

Voestalpine AG

      5.99   

Vienna Insurance Group AG

      4.48   

Raiffeisen International Bank Holding AG

      4.31   

Telekom Austria AG

      3.50   

Verbund AG

      3.38   

Oesterreichische Post AG

      3.27   
  

 

 

  

TOTAL

      64.35 % 
  

 

 

  
 

 

6    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Fund Performance Overview

iSHARES® MSCI BELGIUM CAPPED INVESTABLE MARKET INDEX FUND

Performance as of February 28, 2013

 

Average Annual Total Returns
Year Ended 2/28/13   Five Years Ended 2/28/13   Ten Years Ended 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
23.96%   23.81%   27.79%   (5.40)%   (5.21)%   (4.46)%   9.31%   9.12%   9.49%
Cumulative Total Returns
Year Ended 2/28/13   Five Years Ended 2/28/13   Ten Years Ended 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
23.96%   23.81%   27.79%   (24.25)%   (23.46)%   (20.40)%   143.55%   139.42%   147.57%

Index performance through November 30, 2007 reflects the performance of the MSCI Belgium IndexSM. Index performance beginning on December 1, 2007 through November 8, 2012 reflects the performance of the MSCI Belgium Investable Market IndexSM. Index performance beginning on November 9, 2012 reflects the performance of the MSCI Belgium IMI 25/50 Index.

“Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

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. 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.

 

FUND PERFORMANCE OVERVIEWS

      7   

Table of Contents

Fund Performance Overview (Continued)

iSHARES® MSCI BELGIUM CAPPED INVESTABLE MARKET INDEX FUND

 

The iShares MSCI Belgium Capped Investable Market Index Fund (the “Fund”), formerly the iShares MSCI Belgium Investable Market Index Fund, seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI Belgium IMI 25/50 Index (the “Index”). The Index consists of stocks traded primarily on the Brussels Stock Exchange. 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 February 28, 2013, the total return for the Fund was 19.56%, net of fees, while the total return for the Index was 16.77%*.

 

*

Index performance through November 8, 2012 reflects the performance of the MSCI Belgium Investable Market IndexSM. Index performance beginning on November 9, 2012 reflects the performance of the MSCI Belgium IMI 25/50 Index.

 

PORTFOLIO ALLOCATION

As of 2/28/13

 

Sector    Percentage of
Net Assets

Consumer Non-Cyclical

      41.02 % 

Financial

      19.88   

Basic Materials

      12.99   

Industrial

      7.56   

Diversified

      6.72   

Communications

      6.46   

Consumer Cyclical

      2.14   

Technology

      1.75   

Utilities

      1.30   

Short-Term and Other Net Assets

      0.18   
  

 

 

  

TOTAL

      100.00 % 
  

 

 

  

TEN LARGEST FUND HOLDINGS

As of 2/28/13

 

Security    Percentage of
Net Assets

Anheuser-Busch InBev NV

      22.71 % 

KBC Groep NV

      6.14   

Solvay SA

      5.96   

Ageas

      5.56   

Groupe Bruxelles Lambert SA

      4.73   

UCB SA

      4.51   

Umicore SA

      4.18   

Delhaize Brothers and Co. “The Lion”
(Delhaize Group)

      3.83   

Belgacom SA

      3.25   

Colruyt SA

      2.98   
  

 

 

  

TOTAL

      63.85 % 
  

 

 

  
 

 

8    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Fund Performance Overview

iSHARES® MSCI EMERGING MARKETS EASTERN EUROPE INDEX FUND

Performance as of February 28, 2013

 

Average Annual Total Returns   Cumulative Total Returns
Year Ended 2/28/13   Inception to 2/28/13   Inception to 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
(7.38)%   (7.19)%   (6.50)%   3.86%   3.75%   4.33%   13.82%   13.40%   15.58%

Total returns for the period since inception are calculated from the inception date of the Fund (9/30/09). “Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

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 (10/2/09), 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 MSCI Emerging Markets Eastern Europe Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI Emerging Markets Eastern Europe IndexSM (the “Index”). The Index is a free float-adjusted market capitalization index designed to measure equity market performance of the following four emerging market countries: the Czech Republic, Hungary, Poland and Russia. 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 February 28, 2013, the total return for the Fund was 8.05%, net of fees, while the total return for the Index was 8.47%.

 

PORTFOLIO ALLOCATION

As of 2/28/13

 

Sector    Percentage of
Net Assets

Energy

      45.01 % 

Financial

      25.63   

Basic Materials

      10.29   

Communications

      8.23   

Utilities

      5.87   

Consumer Non-Cyclical

      4.28   

Technology

      0.31   

Industrial

      0.29   

Short-Term and Other Net Assets

      0.09   
  

 

 

  

TOTAL

      100.00 % 
  

 

 

  

TEN LARGEST FUND HOLDINGS

As of 2/28/13

 

Security    Percentage of
Net Assets

Gazprom OAO (Russia)

      15.43 % 

Sberbank of Russia (Russia)

      11.89   

LUKOIL OAO (Russia)

      10.56   

Magnit OJSC SP GDR (Russia)

      3.56   

Mobile TeleSystems OJSC SP ADR (Russia)

      3.45   

NovaTek OAO SP GDR (Russia)

      3.41   

Rosneft Oil Co. OJSC (Russia)

      3.27   

Uralkali OJSC (Russia)

      3.17   

Powszechna Kasa Oszczednosci Bank
Polski SA (Poland)

      3.15   

Tatneft OAO, Class S (Russia)

      2.99   
  

 

 

  

TOTAL

      60.88 % 
  

 

 

  
 

 

FUND PERFORMANCE OVERVIEWS

      9   

Table of Contents

Fund Performance Overview

iSHARES® MSCI EMU INDEX FUND

Performance as of February 28, 2013

 

Average Annual Total Returns
Year Ended 2/28/13   Five Years Ended 2/28/13   Ten Years Ended 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
8.52%   8.58%   8.47%   (5.76)%   (5.66)%   (5.69)%   8.10%   8.06%   8.29%
Cumulative Total Returns
Year Ended 2/28/13   Five Years Ended 2/28/13   Ten Years Ended 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
8.52%   8.58%   8.47%   (25.68)%   (25.27)%   (25.38)%   117.94%   117.14%   121.68%

“Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

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. 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 MSCI EMU Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI EMU IndexSM (the “Index”). The Index consists of stocks from Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, the Netherlands, Portugal and Spain. 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 February 28, 2013, the total return for the Fund was 14.65%, net of fees, while the total return for the Index was 14.80%.

 

PORTFOLIO ALLOCATION

As of 2/28/13

 

Sector    Percentage of
Net Assets		  

Consumer Non-Cyclical

      22.43 % 

Financial

      20.24   

Industrial

      12.99   

Consumer Cyclical

      10.67   

Basic Materials

      8.26   

Communications

      7.62   

Energy

      6.97   

Utilities

      5.65   

Technology

      4.45   

Diversified

      0.57   

Short-Term and Other Net Assets

      0.15   
  

 

 

  

TOTAL

      100.00 % 
  

 

 

  

TEN LARGEST FUND HOLDINGS

As of 2/28/13

 

Security    Percentage of
Net Assets		  

Sanofi (France)

      3.53 % 

Total SA (France)

      3.32   

Siemens AG Registered (Germany)

      2.72   

BASF SE (Germany)

      2.70   

Bayer AG Registered (Germany)

      2.56   

Banco Santander SA (Spain)

      2.50   

Anheuser-Busch InBev NV (Belgium)

      2.35   

SAP AG (Germany)

      2.25   

Unilever NV CVA (Netherlands)

      1.97   

Allianz SE Registered (Germany)

      1.94   
  

 

 

  

TOTAL

      25.84 % 
  

 

 

  
 

 

10    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Fund Performance Overview

iSHARES® MSCI FRANCE INDEX FUND

Performance as of February 28, 2013

 

Average Annual Total Returns
Year Ended 2/28/13   Five Years Ended 2/28/13   Ten Years Ended 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
9.65%   9.75%   9.49%   (3.83)%   (3.71)%   (3.77)%   8.19%   8.20%   8.35%
Cumulative Total Returns
Year Ended 2/28/13   Five Years Ended 2/28/13   Ten Years Ended 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
9.65%   9.75%   9.49%   (17.74)%   (17.20)%   (17.48)%   119.74%   119.92%   123.07%

“Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

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. 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 MSCI France Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI France IndexSM (the “Index”). The Index consists of stocks traded primarily on the Paris Stock Exchange. 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 February 28, 2013, the total return for the Fund was 14.32%, net of fees, while the total return for the Index was 14.46%.

 

PORTFOLIO ALLOCATION

As of 2/28/13

 

Sector    Percentage of
Net Assets

Consumer Non-Cyclical

      26.85 % 

Industrial

      16.35   

Financial

      15.69   

Energy

      11.32   

Consumer Cyclical

      9.83   

Communications

      7.65   

Basic Materials

      5.54   

Utilities

      3.51   

Technology

      2.89   

Diversified

      0.34   

Short-Term and Other Net Assets

      0.03   
  

 

 

  

TOTAL

      100.00 % 
  

 

 

  

TEN LARGEST FUND HOLDINGS

As of 2/28/13

 

Security    Percentage of
Net Assets

Sanofi

      10.53 % 

Total SA

      9.93   

BNP Paribas SA

      5.26   

LVMH Moet Hennessy Louis Vuitton SA

      4.08   

Schneider Electric SA

      3.78   

Danone SA

      3.75   

L’Air Liquide SA

      3.54   

L’Oreal SA

      3.38   

AXA SA

      2.87   

Vivendi SA

      2.59   
  

 

 

  

TOTAL

      49.71 % 
  

 

 

  
 

 

FUND PERFORMANCE OVERVIEWS

      11   

Table of Contents

Fund Performance Overview

iSHARES® MSCI GERMANY INDEX FUND

Performance as of February 28, 2013

 

Average Annual Total Returns
Year Ended 2/28/13   Five Years Ended 2/28/13   Ten Years Ended 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
10.45%   10.71%   10.57%   (1.82)%   (1.63)%   (1.79)%   12.80%   12.81%   12.94%
Cumulative Total Returns
Year Ended 2/28/13   Five Years Ended 2/28/13   Ten Years Ended 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
10.45%   10.71%   10.57%   (8.78)%   (7.91)%   (8.65)%   233.63%   233.72%   237.78%

“Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

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. 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 MSCI Germany Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI Germany IndexSM (the “Index”). The Index consists of stocks traded primarily on the Frankfurt Stock Exchange. 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 February 28, 2013, the total return for the Fund was 15.75%, net of fees, while the total return for the Index was 16.04%.

 

PORTFOLIO ALLOCATION

As of 2/28/13

 

Sector    Percentage of
Net Assets		  

Consumer Cyclical

      18.23 % 

Consumer Non-Cyclical

      17.38   

Financial

      16.53   

Basic Materials

      15.75   

Industrial

      12.97   

Technology

      8.35   

Utilities

      5.08   

Communications

      4.69   

Diversified

      0.66   

Short-Term and Other Net Assets

      0.36   
  

 

 

  

TOTAL

      100.00 % 
  

 

 

  

TEN LARGEST FUND HOLDINGS

As of 2/28/13

 

Security   Percentage of
Net Assets		  

Siemens AG Registered

     8.95 % 

BASF SE

     8.89   

Bayer AG Registered

     8.42   

SAP AG

     7.40   

Allianz SE Registered

     6.40   

Daimler AG Registered

     5.56   

Deutsche Bank AG Registered

     4.38   

Linde AG

     3.45   

Muenchener Rueckversicherungs-Gesellschaft AG Registered

     3.31   

Volkswagen AG (Preferred)

     3.25   
 

 

 

  

TOTAL

     60.01 % 
 

 

 

  
 

 

12    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Fund Performance Overview

iSHARES® MSCI ITALY CAPPED INDEX FUND

Performance as of February 28, 2013

 

Average Annual Total Returns
Year Ended 2/28/13   Five Years Ended 2/28/13   Ten Years Ended 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
(4.12)%   (4.24)%   (4.21)%   (13.08)%   (12.97)%   (13.26)%   1.40%   1.39%   1.31%
Cumulative Total Returns
Year Ended 2/28/13   Five Years Ended 2/28/13   Ten Years Ended 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
(4.12)%   (4.24)%   (4.21)%   (50.38)%   (50.09)%   (50.90)%   14.93%   14.79%   13.89%

Index performance through February 11, 2013 reflects the performance of the MSCI Italy IndexSM. Index performance beginning on February 12, 2013 reflects the performance of the MSCI Italy 25/50 Index.

“Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

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. 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 MSCI Italy Capped Index Fund (the “Fund”), formerly the iShares MSCI Italy Index Fund, seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI Italy 25/50 Index (the “Index”). The Index is a free-float adjusted market capitalization-weighted index and consists of stocks traded primarily on the Milan Stock Exchange. 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 February 28, 2013, the total return for the Fund was 6.61%, net of fees, while the total return for the Index was 6.51%*.

 

*

Index performance through February 11, 2013 reflects the performance of the MSCI Italy IndexSM. Index performance beginning on February 12, 2013 reflects the performance of the MSCI Italy 25/50 Index.

 

PORTFOLIO ALLOCATION

As of 2/28/13

 

Sector    Percentage of
Net Assets

Financial

      27.58 % 

Energy

      21.96   

Utilities

      11.81   

Consumer Cyclical

      11.53   

Industrial

      11.09   

Consumer Non-Cyclical

      9.00   

Communications

      4.36   

Diversified

      2.58   

Short-Term and Other Net Assets

      0.09   
  

 

 

  

TOTAL

      100.00 % 
  

 

 

  

TEN LARGEST FUND HOLDINGS

As of 2/28/13

 

Security    Percentage of
Net Assets

Eni SpA

      20.79 % 

Enel SpA

      7.06   

UniCredit SpA

      5.75   

Assicurazioni Generali SpA

      4.96   

Luxottica Group SpA

      4.73   

Tenaris SA

      4.59   

Fiat Industrial SpA

      4.57   

Atlantia SpA

      4.27   

Terna SpA

      4.17   

Prysmian SpA

      3.85   
  

 

 

  

TOTAL

      64.74 % 
  

 

 

  
 

 

FUND PERFORMANCE OVERVIEWS

      13   

Table of Contents

Fund Performance Overview

iSHARES® MSCI NETHERLANDS INVESTABLE MARKET INDEX FUND

Performance as of February 28, 2013

 

Average Annual Total Returns
Year Ended 2/28/13   Five Years Ended 2/28/13   Ten Years Ended 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
10.74%   10.97%   11.45%   (2.98)%   (2.76)%   (2.46)%   8.95%   8.96%   9.15%
Cumulative Total Returns
Year Ended 2/28/13   Five Years Ended 2/28/13   Ten Years Ended 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
10.74%   10.97%   11.45%   (14.02)%   (13.06)%   (11.71)%   135.72%   135.80%   139.91%

Index performance through January 31, 2008 reflects the performance of the MSCI Netherlands IndexSM. Index performance beginning on February 1, 2008 reflects the performance of the MSCI Netherlands Investable Market IndexSM.

“Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

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. 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.

 

14    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Fund Performance Overview (Continued)

iSHARES® MSCI NETHERLANDS INVESTABLE MARKET INDEX FUND

 

The iShares MSCI Netherlands Investable Market Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI Netherlands Investable Market IndexSM (the “Index”). The Index consists of stocks traded primarily on the Amsterdam Stock Exchange. 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 February 28, 2013, the total return for the Fund was 11.61%, net of fees, while the total return for the Index was 11.94%.

 

PORTFOLIO ALLOCATION

As of 2/28/13

 

Sector    Percentage of
Net Assets

Consumer Non-Cyclical

      39.34 % 

Financial

      17.88   

Industrial

      15.81   

Technology

      8.66   

Communications

      8.09   

Basic Materials

      7.92   

Energy

      1.88   

Consumer Cyclical

      0.21   

Short-Term and Other Net Assets

      0.21   
  

 

 

  

TOTAL

      100.00 % 
  

 

 

  

TEN LARGEST FUND HOLDINGS

As of 2/28/13

 

Security    Percentage of
Net Assets

Unilever NV CVA

      21.22 % 

ING Groep NV CVA

      10.25   

Koninklijke Philips Electronics NV

      9.31   

ASML Holding NV

      7.48   

Heineken NV

      4.99   

Koninklijke Ahold NV

      4.87   

Akzo Nobel NV

      4.86   

Reed Elsevier NV

      3.56   

AEGON NV

      3.54   

Koninklijke DSM NV

      3.06   
  

 

 

  

TOTAL

      73.14 % 
  

 

 

  
 

 

FUND PERFORMANCE OVERVIEWS

      15   

Table of Contents

Fund Performance Overview

iSHARES® MSCI SPAIN CAPPED INDEX FUND

Performance as of February 28, 2013

 

Average Annual Total Returns
Year Ended 2/28/13   Five Years Ended 2/28/13   Ten Years Ended 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
1.38%   1.20%   1.33%   (6.83)%   (6.65)%   (7.47)%   9.15%   9.10%   8.89%
Cumulative Total Returns
Year Ended 2/28/13   Five Years Ended 2/28/13   Ten Years Ended 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
1.38%   1.20%   1.33%   (29.77)%   (29.10)%   (32.16)%   139.94%   138.90%   134.38%

Index performance through February 11, 2013 reflects the performance of the MSCI Spain IndexSM. Index performance beginning on February 12, 2013 reflects the performance of the MSCI Spain 25/50 Index.

“Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

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. 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.

 

16    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Fund Performance Overview (Continued)

iSHARES® MSCI SPAIN CAPPED INDEX FUND

 

The iShares MSCI Spain Capped Index Fund (the “Fund”), formerly the iShares MSCI Spain Index Fund, seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI Spain 25/50 Index (the “Index”). The Index is a free-float adjusted market capitalization-weighted index and consists of stocks traded primarily on the Madrid Stock Exchange. 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 February 28, 2013, the total return for the Fund was 17.29%, net of fees, while the total return for the Index was 17.25%*.

 

*

Index performance through February 11, 2013 reflects the performance of the MSCI Spain IndexSM. Index performance beginning on February 12, 2013 reflects the performance of the MSCI Spain 25/50 Index.

 

PORTFOLIO ALLOCATION

As of 2/28/13

 

Sector    Percentage of
Net Assets		  

Financial

      42.16 % 

Utilities

      13.25   

Communications

      12.69   

Industrial

      8.51   

Consumer Non-Cyclical

      8.41   

Consumer Cyclical

      6.71   

Energy

      4.70   

Technology

      3.51   

Short-Term and Other Net Assets

      0.06   
  

 

 

  

TOTAL

      100.00 % 
  

 

 

  

TEN LARGEST FUND HOLDINGS

As of 2/28/13

 

Security    Percentage of
Net Assets		  

Banco Santander SA

      20.07 % 

Telefonica SA

      12.69   

Banco Bilbao Vizcaya Argentaria SA

      12.01   

Repsol SA

      4.70   

Iberdrola SA

      4.55   

Industria de Diseno Textil SA

      4.49   

Amadeus IT Holding SA Class A

      3.51   

Gas Natural SDG SA

      3.22   

Abertis Infraestructuras SA

      3.10   

Ferrovial SA

      3.05   
  

 

 

  

TOTAL

      71.39 % 
  

 

 

  
 

 

FUND PERFORMANCE OVERVIEWS

      17   

Table of Contents

Fund Performance Overview

iSHARES® MSCI SWEDEN INDEX FUND

Performance as of February 28, 2013

 

Average Annual Total Returns
Year Ended 2/28/13   Five Years Ended 2/28/13   Ten Years Ended 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
14.04%   14.03%   13.95%   5.56%   5.70%   5.51%   16.15%   16.09%   16.22%
Cumulative Total Returns
Year Ended 2/28/13   Five Years Ended 2/28/13   Ten Years Ended 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
14.04%   14.03%   13.95%   31.06%   31.96%   30.73%   347.04%   344.39%   349.51%

“Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

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. 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 MSCI Sweden Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI Sweden IndexSM (the “Index”). The Index consists of stocks traded primarily on the Stockholm Stock Exchange. 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 February 28, 2013, the total return for the Fund was 19.11%, net of fees, while the total return for the Index was 19.44%.

 

PORTFOLIO ALLOCATION

As of 2/28/13

 

Sector    Percentage of
Net Assets

Financial

      28.61 % 

Industrial

      23.96   

Consumer Cyclical

      18.42   

Communications

      16.37   

Consumer Non-Cyclical

      6.28   

Basic Materials

      5.01   

Energy

      1.34   

Short-Term and Other Net Assets

      0.01   
  

 

 

  

TOTAL

      100.00 % 
  

 

 

  

TEN LARGEST FUND HOLDINGS

As of 2/28/13

 

Security    Percentage of
Net Assets

Telefonaktiebolaget LM Ericsson Class B

      9.78 % 

Hennes & Mauritz AB Class B

      9.03   

Nordea Bank AB

      8.12   

Volvo AB Class B

      5.99   

Svenska Handelsbanken AB Class A

      5.76   

Atlas Copco AB Class A

      5.17   

Swedbank AB Class A

      4.89   

Sandvik AB

      4.33   

Skandinaviska Enskilda Banken AB Class A

      3.94   

TeliaSonera AB

      3.93   
  

 

 

  

TOTAL

      60.94 % 
  

 

 

  
 

 

18    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Fund Performance Overview

iSHARES® MSCI SWITZERLAND CAPPED INDEX FUND

Performance as of February 28, 2013

 

Average Annual Total Returns
Year Ended 2/28/13   Five Years Ended 2/28/13   Ten Years Ended 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
21.73%   21.50%   22.24%   4.58%   4.65%   4.39%   12.59%   12.44%   12.15%
Cumulative Total Returns
Year Ended 2/28/13   Five Years Ended 2/28/13   Ten Years Ended 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
21.73%   21.50%   22.24%   25.11%   25.53%   23.94%   227.43%   223.03%   214.66%

Index performance through February 11, 2013 reflects the performance of the MSCI Switzerland IndexSM. Index performance beginning on February 12, 2013 reflects the performance of the MSCI Switzerland 25/50 Index.

“Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

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. 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.

 

FUND PERFORMANCE OVERVIEWS

      19   

Table of Contents

Fund Performance Overview (Continued)

iSHARES® MSCI SWITZERLAND CAPPED INDEX FUND

 

The iShares MSCI Switzerland Capped Index Fund (the “Fund”), formerly the iShares MSCI Switzerland Index Fund, seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI Switzerland 25/50 Index (the “Index”). The Index is a free-float adjusted market capitalization-weighted index and consists of stocks traded primarily on the Zurich Stock Exchange. 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 February 28, 2013, the total return for the Fund was 21.43%, net of fees, while the total return for the Index was 22.02%*.

 

*

Index performance through February 11, 2013 reflects the performance of the MSCI Switzerland IndexSM. Index performance beginning on February 12, 2013 reflects the performance of the MSCI Switzerland 25/50 Index.

 

PORTFOLIO ALLOCATION

As of 2/28/13

 

Sector    Percentage of
Net Assets

Consumer Non-Cyclical

      51.40 % 

Financial

      19.29   

Industrial

      11.65   

Consumer Cyclical

      7.05   

Basic Materials

      6.19   

Energy

      2.00   

Communications

      1.30   

Short-Term and Other Net Assets

      1.12   
  

 

 

  

TOTAL

      100.00 % 
  

 

 

  

TEN LARGEST FUND HOLDINGS

As of 2/28/13

 

Security    Percentage of
Net Assets

Nestle SA Registered

      19.18 % 

Roche Holding AG Genusschein

      12.90   

Novartis AG Registered

      12.49   

ABB Ltd. Registered

      4.42   

UBS AG Registered

      4.37   

Compagnie Financiere Richemont SA Class A Bearer

      4.33   

Syngenta AG Registered

      4.12   

Zurich Insurance Group AG

      4.12   

Credit Suisse Group AG Registered

      3.37   

Swiss Re AG

      2.98   
  

 

 

  

TOTAL

      72.28 % 
  

 

 

  
 

 

20    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Fund Performance Overview

iSHARES® MSCI UNITED KINGDOM INDEX FUND

Performance as of February 28, 2013

 

Average Annual Total Returns
Year Ended 2/28/13   Five Years Ended 2/28/13   Ten Years Ended 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
6.59%   6.56%   7.16%   (0.53)%   (0.35)%   0.03%   8.44%   8.47%   9.16%
Cumulative Total Returns
Year Ended 2/28/13   Five Years Ended 2/28/13   Ten Years Ended 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
6.59%   6.56%   7.16%   (2.61)%   (1.75)%   0.14%   124.82%   125.56%   140.23%

“Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

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. 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 MSCI United Kingdom Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI United Kingdom IndexSM (the “Index”). The Index consists of stocks traded primarily on the London Stock Exchange. 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 February 28, 2013, the total return for the Fund was 7.71%, net of fees, while the total return for the Index was 7.99%.

 

PORTFOLIO ALLOCATION

As of 2/28/13

 

Sector    Percentage of
Net Assets

Consumer Non-Cyclical

      27.46 % 

Financial

      21.48   

Energy

      17.12   

Basic Materials

      11.07   

Communications

      9.14   

Consumer Cyclical

      4.18   

Utilities

      4.10   

Industrial

      3.82   

Technology

      1.05   

Short-Term and Other Net Assets

      0.58   
  

 

 

  

TOTAL

      100.00 % 
  

 

 

  

TEN LARGEST FUND HOLDINGS

As of 2/28/13

 

Security    Percentage of
Net Assets

HSBC Holdings PLC

      8.17 % 

BP PLC

      5.15   

Vodafone Group PLC

      4.94   

Royal Dutch Shell PLC Class A

      4.92   

GlaxoSmithKline PLC

      4.35   

British American Tobacco PLC

      4.04   

Royal Dutch Shell PLC Class B

      3.55   

Diageo PLC

      3.02   

Rio Tinto PLC

      2.88   

BHP Billiton PLC

      2.68   
  

 

 

  

TOTAL

      43.70 % 
  

 

 

  
 

 

FUND PERFORMANCE OVERVIEWS

      21   

Table of Contents

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 September 1, 2012 to February 28, 2013.

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 MSCI Index Fund    Beginning
Account Value
(9/1/12)		      Ending
Account Value
(2/28/13)		      Annualized
Expense Ratio		     Expenses Paid
During Period a		  

Austria Capped Investable Market

           

Actual

    $ 1,000.00       $ 1,251.30         0.51 %    $ 2.85   

Hypothetical (5% return before expenses)

      1,000.00         1,022.30         0.51        2.56   

Belgium Capped Investable Market

           

Actual

      1,000.00         1,195.60         0.51        2.78   

Hypothetical (5% return before expenses)

      1,000.00         1,022.30         0.51        2.56   

Emerging Markets Eastern Europe

           

Actual

      1,000.00         1,080.50         0.67        3.46   

Hypothetical (5% return before expenses)

      1,000.00         1,021.50         0.67        3.36   

EMU

           

Actual

      1,000.00         1,146.50         0.51        2.71   

Hypothetical (5% return before expenses)

      1,000.00         1,022.30         0.51        2.56   

 

22    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Shareholder Expenses (Unaudited) (Continued)

iSHARES®, INC.

 

iShares MSCI Index Fund    Beginning
Account Value
(9/1/12)		      Ending
Account Value
(2/28/13)		      Annualized
Expense Ratio		     Expenses Paid
During Period a		  

France

           

Actual

    $ 1,000.00       $ 1,143.20         0.51 %    $ 2.71   

Hypothetical (5% return before expenses)

      1,000.00         1,022.30         0.51        2.56   

Germany

           

Actual

      1,000.00         1,157.50         0.51        2.73   

Hypothetical (5% return before expenses)

      1,000.00         1,022.30         0.51        2.56   

Italy Capped

           

Actual

      1,000.00         1,066.10         0.51        2.61   

Hypothetical (5% return before expenses)

      1,000.00         1,022.30         0.51        2.56   

Netherlands Investable Market

           

Actual

      1,000.00         1,116.10         0.51        2.68   

Hypothetical (5% return before expenses)

      1,000.00         1,022.30         0.51        2.56   

Spain Capped

           

Actual

      1,000.00         1,172.90         0.51        2.75   

Hypothetical (5% return before expenses)

      1,000.00         1,022.30         0.51        2.56   

Sweden

           

Actual

      1,000.00         1,191.10         0.51        2.77   

Hypothetical (5% return before expenses)

      1,000.00         1,022.30         0.51        2.56   

Switzerland Capped

           

Actual

      1,000.00         1,214.30         0.51        2.80   

Hypothetical (5% return before expenses)

      1,000.00         1,022.30         0.51        2.56   

United Kingdom

           

Actual

      1,000.00         1,077.10         0.51        2.63   

Hypothetical (5% return before expenses)

      1,000.00         1,022.30         0.51        2.56   

 

a 

Expenses 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 (181 days) and divided by the number of days in the year (365 days).

 

 

SHAREHOLDER EXPENSES

      23   

Table of Contents

Schedule of Investments (Unaudited)

iSHARES® MSCI AUSTRIA CAPPED INVESTABLE MARKET INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

COMMON STOCKS — 99.38%

  

AUTO MANUFACTURERS — 0.90%

  

  

Rosenbauer International AG

     14,460      $ 973,571   
   

 

 

  
      973,571   

BANKS — 17.06%

  

  

Erste Group Bank AGa

     429,540        13,856,473   

Raiffeisen International Bank Holding AG

     123,540        4,678,139   
   

 

 

  
      18,534,612   

BUILDING MATERIALS — 3.19%

  

  

Wienerberger AGb

     319,200        3,463,641   
   

 

 

  
      3,463,641   

CHEMICALS — 2.55%

  

  

Lenzing AG

     29,160        2,767,300   
   

 

 

  
      2,767,300   

COMMERCIAL SERVICES — 0.94%

  

  

Kapsch TrafficCom AGb

     20,520        1,019,419   
   

 

 

  
      1,019,419   

ELECTRIC — 4.85%

  

  

EVN AG

     111,360        1,595,628   

Verbund AG

     176,460        3,672,665   
   

 

 

  
      5,268,293   

ELECTRICAL COMPONENTS & EQUIPMENT — 1.39%

  

Zumtobel AG

     100,680        1,509,069   
   

 

 

  
      1,509,069   

ELECTRONICS — 0.66%

  

  

Austria Technologie & Systemtechnik AG

     73,140        722,789   
   

 

 

  
      722,789   

ENGINEERING & CONSTRUCTION — 3.34%

  

  

Flughafen Wien AG

     32,040        1,922,427   

Strabag SE

     69,240        1,706,319   
   

 

 

  
      3,628,746   

ENVIRONMENTAL CONTROL — 0.57%

  

  

BWT AG

     30,840        624,940   
   

 

 

  
      624,940   

INSURANCE — 4.48%

  

  

Vienna Insurance Group AG

     96,060        4,871,406   
   

 

 

  
      4,871,406   

IRON & STEEL — 7.32%

  

  

AMAG Austria Metall AGc

     46,260        1,448,449   
Security   Shares     Value  
   

Voestalpine AG

     192,540      $ 6,509,407   
   

 

 

  
      7,957,856   

MACHINERY — 9.96%

  

  

Andritz AG

     135,420        9,563,774   

Palfinger AG

     46,740        1,255,719   
   

 

 

  
      10,819,493   

MANUFACTURING — 3.24%

  

  

RHI AG

     63,360        2,124,270   

Semperit AG Holding

     34,140        1,396,565   
   

 

 

  
      3,520,835   

OIL & GAS — 11.56%

  

  

OMV AG

     288,180        12,560,918   
   

 

 

  
      12,560,918   

OIL & GAS SERVICES — 2.77%

  

  

Schoeller-Bleckmann Oilfield Equipment AGb

     29,940        3,005,719   
   

 

 

  
      3,005,719   

PACKAGING & CONTAINERS — 2.56%

  

  

Mayr-Melnhof Karton AG

     24,540        2,787,637   
   

 

 

  
      2,787,637   

REAL ESTATE — 15.27%

  

  

Atrium European Real Estate Ltd.

     543,120        3,261,251   

CA Immobilien Anlagen AGa

     203,220        2,926,462   

conwert Immobilien Invest SE

     191,160        2,427,905   

IMMOEAST AG Escrowa,d

     998,769        13   

IMMOFINANZ AGa

     1,636,740        6,858,034   

IMMOFINANZ AG Escrowa,d

     897,599        12   

S IMMO AG

     178,020        1,119,453   
   

 

 

  
      16,593,130   

TELECOMMUNICATIONS — 3.50%

  

  

Telekom Austria AG

     574,740        3,802,015   
   

 

 

  
      3,802,015   

TRANSPORTATION — 3.27%

  

  

Oesterreichische Post AG

     88,200        3,552,648   
   

 

 

  
      3,552,648   
   

 

 

  

TOTAL COMMON STOCKS

  

  

(Cost: $138,915,015)

  

     107,984,037   
 

 

24    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI AUSTRIA CAPPED INVESTABLE MARKET INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

SHORT-TERM INVESTMENTS — 1.88%

  

MONEY MARKET FUNDS — 1.88%

  

  

BlackRock Cash Funds: Institutional,
SL Agency Shares

    

0.21%e,f,g

     1,906,791      $ 1,906,791   

BlackRock Cash Funds: Prime,
SL Agency Shares

    

0.18%e,f,g

     138,058        138,058   

BlackRock Cash Funds: Treasury,
SL Agency Shares

    

0.04%e,f

     394        394   
   

 

 

  
      2,045,243   
   

 

 

  

TOTAL SHORT-TERM INVESTMENTS

  

  

(Cost: $2,045,243)

  

     2,045,243   
   

 

 

  

TOTAL INVESTMENTS
IN SECURITIES — 101.26%

   

  

(Cost: $140,960,258)

       110,029,280   

Other Assets, Less Liabilities — (1.26)%

  

     (1,364,981 ) 
   

 

 

  

NET ASSETS — 100.00%

     $ 108,664,299   
   

 

 

  

 

a 

Non-income earning security.

b 

All or a portion of this security represents a security on loan. See Note 5.

c 

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

d 

Security valued using Level 3 inputs in accordance with management’s fair valuation policy. See Note 1.

e 

Affiliated issuer. See Note 2.

f 

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

g 

All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

 

 

SCHEDULES OF INVESTMENTS

      25   

Table of Contents

Schedule of Investments (Unaudited)

iSHARES® MSCI BELGIUM CAPPED INVESTABLE MARKET INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

COMMON STOCKS — 99.82%

  

AGRICULTURE — 0.89%

  

  

SIPEF NV

     6,300      $ 534,783   
   

 

 

  
      534,783   

BANKS — 6.15%

    

KBC Groep NV

     99,330        3,689,297   
   

 

 

  
      3,689,297   

BEVERAGES — 22.71%

    

Anheuser-Busch InBev NV

     145,320        13,633,261   
   

 

 

  
      13,633,261   

BIOTECHNOLOGY — 1.27%

    

Ablynx NVa

     79,170        760,746   
   

 

 

  
      760,746   

CHEMICALS — 7.70%

    

Recticel SA

     58,170        456,291   

Solvay SA

     24,990        3,575,806   

Tessenderlo Chemie NV

     20,160        591,960   
   

 

 

  
      4,624,057   

COMPUTERS — 0.89%

    

Econocom Group SA

     70,035        535,628   
   

 

 

  
      535,628   

DISTRIBUTION & WHOLESALE — 1.13%

    

SA D’Ieteren NV

     15,435        677,811   
   

 

 

  
      677,811   

ELECTRIC — 1.30%

    

Elia System Operator SA

     17,745        778,904   
   

 

 

  
      778,904   

ELECTRICAL COMPONENTS & EQUIPMENT — 1.27%

  

Bekaert NV

     27,930        760,775   
   

 

 

  
      760,775   

ELECTRONICS — 2.34%

    

Barco NV

     8,715        740,353   

EVS Broadcast Equipment SA

     10,395        666,585   
   

 

 

  
      1,406,938   

ENGINEERING & CONSTRUCTION — 0.89%

  

  

Compagnie d’Entreprises CFE SA

     9,240        536,952   
   

 

 

  
      536,952   

ENTERTAINMENT — 1.01%

    

Kinepolis Group NV

     4,830        606,192   
   

 

 

  
      606,192   
Security   Shares     Value  
   

FOOD — 6.80%

    

Colruyt SA

     36,225      $ 1,787,556   

Delhaize Brothers and Co. “The Lion”
(Delhaize Group)

     47,460        2,296,974   
   

 

 

  
      4,084,530   

HEALTH CARE — PRODUCTS — 0.76%

    

Ion Beam Applications SAa

     60,585        457,810   
   

 

 

  
      457,810   

HOLDING COMPANIES — DIVERSIFIED — 8.40%

  

  

Ackermans & van Haaren NV

     13,125        1,197,181   

Groupe Bruxelles Lambert SA

     35,490        2,839,085   

KBC Ancora SCAa,b

     47,880        904,511   

RHJ International SAa

     19,580        103,928   
   

 

 

  
      5,044,705   

INSURANCE — 5.57%

    

Ageas

     97,965        3,340,825   
   

 

 

  
      3,340,825   

MANUFACTURING — 0.86%

    

Agfa-Gevaert NVa

     261,450        516,128   
   

 

 

  
      516,128   

MINING — 5.28%

  

Nyrstar NVa

     115,920        664,387   

Umicore SA

     50,085        2,507,177   
   

 

 

  
      3,171,564   

PHARMACEUTICALS — 8.58%

    

Arseus NV

     24,675        642,919   

Galapagos NVa

     25,410        641,142   

ThromboGenics NVa,b

     21,945        1,158,781   

UCB SA

     46,830        2,709,127   
   

 

 

  
      5,151,969   

REAL ESTATE INVESTMENT TRUSTS — 5.26%

  

  

Befimmo SCA

     10,500        693,222   

Cofinimmo SA

     8,610        1,020,945   

Intervest Offices & Warehouses

     15,750        404,815   

Warehouses De Pauw SCA

     9,555        621,339   

Wereldhave Belgium NV

     3,885        415,111   
   

 

 

  
      3,155,432   

SEMICONDUCTORS — 0.86%

    

Melexis NV

     26,880        517,284   
   

 

 

  
      517,284   
 

 

26    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI BELGIUM CAPPED INVESTABLE MARKET INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

TELECOMMUNICATIONS — 6.47%

    

Belgacom SA

     69,720      $ 1,951,488   

Mobistar SA

     23,940        567,589   

Telenet Group Holding NV

     26,565        1,361,928   
   

 

 

  
      3,881,005   

TRANSPORTATION — 2.20%

    

Compagnie Maritime Belge SA

     21,735        407,759   

Euronav SAa

     66,570        339,418   

Exmar NV

     51,240        571,413   
   

 

 

  
      1,318,590   

VENTURE CAPITAL — 1.23%

    

GIMV NV

     13,860        738,385   
   

 

 

  
      738,385   
   

 

 

  

TOTAL COMMON STOCKS

  

  

(Cost: $61,357,839)

  

     59,923,571   

SHORT-TERM INVESTMENTS — 0.81%

  

MONEY MARKET FUNDS — 0.81%

  

  

BlackRock Cash Funds: Institutional,
SL Agency Shares

    

0.21%c,d,e

     439,821        439,821   

BlackRock Cash Funds: Prime,
SL Agency Shares

    

0.18%c,d,e

     31,845        31,845   

BlackRock Cash Funds: Treasury,
SL Agency Shares

    

0.04%c,d

     16,785        16,785   
   

 

 

  
      488,451   
   

 

 

  

TOTAL SHORT-TERM INVESTMENTS

  

  

(Cost: $488,451)

  

     488,451   
   

 

 

  
          Value  

TOTAL INVESTMENTS
IN SECURITIES — 100.63%

  

(Cost: $61,846,290)

       60,412,022   

Other Assets, Less Liabilities — (0.63)%

     (380,283 ) 
   

 

 

  

NET ASSETS — 100.00%

     $ 60,031,739   
   

 

 

  

 

a 

Non-income earning security.

b 

All or a portion of this security represents a security on loan. See Note 5.

c 

Affiliated issuer. See Note 2.

d 

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

e 

All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

 

 

SCHEDULES OF INVESTMENTS

      27   

Table of Contents

Schedule of Investments (Unaudited)

iSHARES® MSCI EMERGING MARKETS EASTERN EUROPE INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

COMMON STOCKS — 96.37%

  

CZECH REPUBLIC — 3.17%

  

  

CEZ AS

     12,907      $ 388,729   

Komercni Banka AS

     1,218        247,799   

Telefonica O2 Czech Republic AS

     8,938        147,783   
   

 

 

  
      784,311   

HUNGARY — 2.81%

    

Magyar Telekom Telecommunications PLC

     37,221        66,956   

MOL Hungarian Oil and Gas PLC

     3,325        255,564   

OTP Bank PLC

     17,879        371,406   
   

 

 

  
      693,926   

POLAND — 18.88%

    

Asseco Poland SA

     5,687        77,336   

Bank Handlowy w Warszawie SA

     2,584        73,176   

Bank Millennium SAa

     34,657        52,184   

Bank Pekao SA

     10,393        525,126   

BRE Bank SAa

     1,178        125,238   

Cyfrowy Polsat SAa

     15,143        78,230   

ENEA SA

     8,721        42,581   

Eurocash SA

     5,567        92,943   

Grupa Lotos SAa

     5,225        68,749   

Jastrzebska Spolka Weglowa SA

     2,812        84,151   

Kernel Holding SAa

     4,218        86,498   

KGHM Polska Miedz SA

     11,163        635,414   

Polska Grupa Energetyczna SA

     59,698        305,208   

Polski Koncern Naftowy Orlen SAa

     25,631        433,165   

Polskie Gornictwo Naftowe i Gazownictwo SAa

     141,162        254,350   

Powszechna Kasa Oszczednosci Bank Polski SA

     69,414        778,422   

Powszechny Zaklad Ubezpieczen SA

     4,465        566,678   

Synthos SA

     41,499        72,291   

Tauron Polska Energia SA

     84,778        117,504   

Telekomunikacja Polska SA

     58,178        124,619   

Zaklady Azotowe w Tarnowie-Moscicach SAa

     3,979        70,692   
   

 

 

  
      4,664,555   

RUSSIA — 71.51%

    

Federal Grid Co. of Unified Energy System OJSCa

     24,948,000        154,958   
Security   Shares     Value  
   

Gazprom OAO

     849,302      $ 3,813,202   

IDGC Holding JSCa

     1,548,500        97,102   

INTER RAO UES OJSCa

     164,400,000        116,037   

LSR Group OJSC SP GDRb

     16,739        79,410   

LUKOIL OAO

     40,698        2,610,564   

Magnit OJSC SP GDRb

     20,739        879,748   

Mechel OAO SP ADR

     11,419        62,690   

MegaFon OAO SP GDRa

     6,897        198,289   

MMC Norilsk Nickel OJSC

     3,800        671,027   

Mobile TeleSystems OJSC SP ADR

     41,217        852,780   

NovaTek OAO SP GDRb

     7,258        841,928   

Novolipetsk Steel OJSC SP GDRb

     5,339        102,455   

Rosneft Oil Co. OJSC

     101,484        809,182   

Rostelecom OJSC

     93,710        375,787   

RusHydro OJSC

     10,127,000        227,805   

Sberbank of Russia

     860,235        2,939,444   

Severstal OAO

     13,189        147,006   

Sistema JSFC SP GDRb

     9,614        189,011   

Surgutneftegas OJSC

     568,160        532,687   

Tatneft OAO, Class S

     112,949        739,272   

TMK OAO SP GDRb

     4,769        71,106   

Uralkali OJSC

     105,265        782,540   

VTB Bank OJSC

     208,160,999        380,099   
   

 

 

  
      17,674,129   
   

 

 

  

TOTAL COMMON STOCKS

  

  

(Cost: $29,423,994)

  

     23,816,921   

PREFERRED STOCKS — 3.54%

  

RUSSIA — 3.54%

  

  

AK Transneft OAO

     122        273,579   

Sberbank of Russia

     80,500        195,551   

Surgutneftegas OJSC

     552,900        407,069   
   

 

 

  
      876,199   
   

 

 

  

TOTAL PREFERRED STOCKS

  

  

(Cost: $757,412)

  

     876,199   
 

 

28    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS EASTERN EUROPE INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

SHORT-TERM INVESTMENTS — 0.02%

  

MONEY MARKET FUNDS — 0.02%

  

  

BlackRock Cash Funds: Treasury,
SL Agency Shares

    

0.04%c,d

     3,799      $ 3,799   
   

 

 

  
      3,799   
   

 

 

  

TOTAL SHORT-TERM INVESTMENTS

  

  

(Cost: $3,799)

  

     3,799   
   

 

 

  

TOTAL INVESTMENTS
IN SECURITIES — 99.93%

   

  

(Cost: $30,185,205)

       24,696,919   

Other Assets, Less Liabilities — 0.07%

  

     17,719   
   

 

 

  

NET ASSETS — 100.00%

     $ 24,714,638   
   

 

 

  

SP ADR  —  Sponsored American Depositary Receipts

SP GDR  —  Sponsored Global Depositary Receipts

 

a 

Non-income earning security.

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.

 

 

SCHEDULES OF INVESTMENTS

      29   

Table of Contents

Schedule of Investments (Unaudited)

iSHARES® MSCI EMU INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

COMMON STOCKS — 97.73%

  

AUSTRIA — 1.03%

  

  

Andritz AG

     53,700      $ 3,792,458   

Erste Group Bank AGa

     161,100        5,196,903   

IMMOEAST AG Escrowa,b

     105,078        1   

IMMOFINANZ AGa

     689,508        2,889,078   

IMMOFINANZ AG Escrowa,b

     68,575        1   

OMV AG

     109,548        4,774,875   

Raiffeisen International Bank Holding AG

     36,516        1,382,766   

Telekom Austria AG

     165,396        1,094,126   

Verbund AG

     50,836        1,058,051   

Vienna Insurance Group AG

     28,640        1,452,395   

Voestalpine AG

     82,340        2,783,757   
   

 

 

  
      24,424,411   

BELGIUM — 4.19%

    

Ageas

     171,840        5,860,127   

Anheuser-Busch InBev NV

     595,712        55,886,989   

Belgacom SA

     112,412        3,146,453   

Colruyt SA

     55,848        2,755,872   

Delhaize Brothers and Co. “The Lion” (Delhaize Group)

     75,896        3,673,223   

Groupe Bruxelles Lambert SA

     59,428        4,754,047   

KBC Groep NV

     175,420        6,515,418   

Solvay SA

     43,676        6,249,576   

Telenet Group Holding NV

     38,664        1,982,216   

UCB SA

     81,624        4,721,968   

Umicore SA

     84,488        4,229,337   
   

 

 

  
      99,775,226   

FINLAND — 2.82%

    

Elisa OYJ

     104,536        2,205,776   

Fortum OYJ

     329,360        6,290,903   

Kesko OYJ Class B

     47,256        1,478,399   

Kone OYJ Class B

     115,276        9,343,778   

Metso OYJ

     94,512        4,065,133   

Neste Oil OYJ

     95,228        1,435,443   

Nokia OYJc

     2,778,080        10,082,219   

Nokian Renkaat OYJ

     83,056        3,779,784   

Orion OYJ Class B

     71,600        2,124,863   

Pohjola Bank PLC Class A

     103,104        1,637,735   

Sampo OYJ Class A

     310,744        11,500,972   

Stora Enso OYJ Class R

     408,120        2,747,812   
Security   Shares     Value  
   

UPM-Kymmene OYJ

     390,220      $ 4,568,431   

Wartsila OYJ Abp

     124,584        5,765,772   
   

 

 

  
      67,027,020   

FRANCE — 33.48%

    

Accor SA

     110,264        3,982,966   

Aeroports de Paris

     22,196        1,877,461   

ALSTOM

     160,384        7,087,118   

ArcelorMittal

     740,344        11,145,240   

Arkema SA

     46,540        4,734,886   

Atos SA

     40,096        2,982,146   

AXA SA

     1,312,428        22,828,759   

BNP Paribas SA

     743,924        41,922,594   

Bouygues SAc

     141,052        3,990,510   

Bureau Veritas SA

     41,528        5,363,471   

Cap Gemini SA

     113,844        5,610,297   

Carrefour SA

     447,500        12,215,619   

Casino Guichard-Perrachon SA

     41,528        4,180,456   

Christian Dior SA

     40,812        6,826,846   

CNP Assurances SA

     116,708        1,739,392   

Compagnie de Saint-Gobain

     295,708        11,812,377   

Compagnie Generale de Geophysique-Veritasa

     118,140        2,937,646   

Compagnie Generale des Etablissements Michelin Class B

     135,324        12,108,121   

Credit Agricole SAa

     741,776        6,982,279   

Danone SA

     429,600        29,873,506   

Dassault Systemes SA

     45,824        5,208,403   

Edenred SA

     126,016        4,365,797   

Electricite de France SA

     179,000        3,389,717   

Essilor International SA

     150,360        15,539,109   

Eurazeo

     22,196        1,212,080   

European Aeronautic Defence and Space Co. NV

     337,236        17,273,896   

Eutelsat Communications SA

     98,808        3,564,630   

Fonciere des Regions

     19,332        1,601,594   

France Telecom SA

     1,376,152        13,347,616   

GDF Suez

     984,500        18,637,009   

Gecina SA

     16,468        1,871,985   

Gemalto NV

     58,712        5,353,043   

Groupe Eurotunnel SA Registered

     408,901        3,465,127   

Icade

     17,900        1,611,432   

Iliad SA

     17,184        3,293,443   
 

 

30    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI EMU INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Imerys SA

     25,060      $ 1,691,185   

JCDecaux SA

     49,404        1,343,437   

Klepierre

     73,032        3,005,183   

L’Air Liquide SA

     231,984        28,266,099   

L’Oreal SA

     180,432        27,020,948   

Lafarge SA

     138,904        9,377,626   

Lagardere SCA

     88,068        3,147,810   

Legrand SA

     176,136        8,109,008   

LVMH Moet Hennessy Louis Vuitton SA

     188,308        32,471,735   

Natixis

     688,076        2,872,283   

Pernod Ricard SA

     157,520        20,467,761   

PPR SA

     55,848        12,536,314   

PSA Peugeot Citroen SAa,c

     171,124        1,297,123   

Publicis Groupe SA

     131,744        8,718,563   

Remy Cointreau SA

     16,468        2,084,050   

Renault SA

     142,484        9,055,831   

Rexel SA

     110,980        2,576,794   

Safran SA

     170,408        7,815,225   

Sanofi

     884,260        83,905,200   

Schneider Electric SA

     390,220        30,058,285   

SCOR SE

     121,720        3,447,566   

SES SA Class A FDR

     224,108        6,908,648   

Societe BIC SA

     21,480        2,510,801   

Societe Generalea

     521,248        20,041,552   

Sodexo

     70,168        6,507,620   

STMicroelectronics NV

     471,844        3,767,197   

Suez Environnement SA

     208,356        2,782,507   

Technip SA

     75,180        8,153,855   

Thales SA

     68,020        2,399,667   

Total SA

     1,580,212        79,113,275   

Unibail-Rodamco SE

     68,020        15,722,110   

Vallourec SA

     76,612        4,089,480   

Veolia Environnement

     252,032        3,175,664   

Vinci SA

     342,248        15,861,677   

Vivendi SA

     982,352        20,702,562   

Wendel

     24,344        2,684,853   

Zodiac Aerospace

     25,776        2,904,116   
   

 

 

  
      796,530,181   

GERMANY — 28.14%

    

Adidas AG

     155,372        14,178,168   

Allianz SE Registered

     337,952        46,258,722   
Security   Shares     Value  
   

Axel Springer AG

     29,356      $ 1,385,466   

BASF SE

     681,632        64,321,888   

Bayer AG Registered

     613,612        60,855,329   

Bayerische Motoren Werke AG

     245,588        22,699,615   

Beiersdorf AG

     74,464        6,502,041   

Brenntag AG

     37,948        5,417,557   

Celesio AG

     63,008        1,140,873   

Commerzbank AGa

     2,809,584        5,190,105   

Continental AG

     81,624        9,594,400   

Daimler AG Registered

     673,040        40,180,586   

Deutsche Bank AG Registered

     689,508        31,631,123   

Deutsche Boerse AG

     143,200        8,889,788   

Deutsche Lufthansa AG Registered

     170,408        3,441,996   

Deutsche Post AG Registered

     672,324        15,104,977   

Deutsche Telekom AG Registered

     2,083,560        22,409,875   

E.ON SE

     1,336,056        22,340,204   

Fraport AG

     27,208        1,619,164   

Fresenius Medical Care AG & Co. KgaA

     156,804        10,768,531   

Fresenius SE & Co. KgaA

     92,364        11,367,602   

GEA Group AG

     132,460        4,723,256   

Hannover Rueckversicherung AG Registered

     45,108        3,534,189   

HeidelbergCement AG

     104,536        7,218,654   

Henkel AG & Co. KgaA

     96,660        7,161,301   

Hochtief AGa

     22,912        1,543,830   

Hugo Boss AG

     18,616        2,161,425   

Infineon Technologies AG

     801,920        6,878,488   

K+S AG Registered

     128,164        6,032,826   

Kabel Deutschland Holding AG

     65,872        5,720,804   

Lanxess AG

     61,576        5,226,151   

Linde AG

     137,472        24,963,670   

MAN SE

     31,504        3,624,435   

Merck KgaA

     47,256        6,672,255   

METRO AG

     95,944        2,972,748   

Muenchener Rueckversicherungs-Gesellschaft AG Registered

     133,176        23,974,626   

QIAGEN NVa

     175,420        3,733,580   

RWE AG

     362,296        13,326,079   

Salzgitter AG

     29,356        1,402,545   

SAP AG

     683,780        53,502,304   

Siemens AG Registered

     620,772        64,616,916   

Suedzucker AG

     60,144        2,638,012   

ThyssenKrupp AGa

     286,400        6,468,193   
 

 

SCHEDULES OF INVESTMENTS

      31   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI EMU INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

United Internet AG Registered

     72,316      $ 1,707,907   

Volkswagen AG

     21,480        4,432,725   
   

 

 

  
      669,534,929   

GREECE — 0.24%

  

Coca-Cola Hellenic Bottling Co. SAa

     152,779        4,174,475   

OPAP SA

     163,328        1,392,195   
   

 

 

  
      5,566,670   

IRELAND — 0.98%

  

CRH PLC

     539,148        11,785,179   

Elan Corp. PLCa

     372,668        4,164,163   

Irish Bank Resolution Corp. Ltd.a,b

     446,666        6   

Kerry Group PLC Class A

     112,412        6,313,481   

Ryanair Holdings PLC

     43,520        321,917   

Ryanair Holdings PLC SP ADR

     17,900        692,014   
   

 

 

  
      23,276,760   

ITALY — 7.32%

  

Assicurazioni Generali SpA

     866,360        14,067,338   

Atlantia SpA

     244,641        4,237,767   

Banca Monte dei Paschi di Siena SpAa,c

     4,771,424        1,316,202   

Banco Popolare Scrla

     1,310,280        2,213,189   

Enel Green Power SpA

     1,301,688        2,411,397   

Enel SpA

     4,882,404        17,693,709   

Eni SpA

     1,887,376        43,081,875   

Exor SpA

     47,972        1,345,890   

Fiat Industrial SpA

     635,092        7,734,129   

Fiat SpAa

     649,412        3,489,427   

Finmeccanica SpAa

     300,720        1,480,589   

Intesa Sanpaolo SpA

     7,464,300        12,129,758   

Intesa Sanpaolo SpA RNC

     705,260        977,343   

Luxottica Group SpA

     121,720        5,658,686   

Mediobanca SpA

     383,776        2,337,057   

Pirelli & C. SpA

     176,136        2,048,264   

Prysmian SpA

     151,076        3,296,429   

Saipem SpA

     196,184        5,252,735   

Snam SpA

     1,253,000        5,949,615   

Telecom Italia SpA

     6,948,780        5,137,278   

Telecom Italia SpA RNC

     4,488,604        2,898,880   

Tenaris SA

     350,124        7,213,899   

Terna SpA

     966,600        4,046,318   

UniCredit SpAa

     3,005,052        15,290,326   

Unione di Banche Italiane SpA

     635,808        2,915,933   
   

 

 

  
      174,224,033   
Security   Shares     Value  
   

NETHERLANDS — 8.49%

  

AEGON NV

     1,316,008      $ 7,883,255   

Akzo Nobel NV

     176,852        11,312,983   

ASML Holding NV

     233,416        16,637,130   

Corio NV

     50,120        2,315,304   

D.E Master Blenders 1753 NVa

     377,332        4,553,699   

Delta Lloyd NV

     131,028        2,322,821   

Fugro NV CVA

     51,552        2,459,636   

Heineken Holding NV

     74,464        4,672,825   

Heineken NV

     171,124        12,794,489   

ING Groep NV CVAa

     2,841,088        22,872,640   

Koninklijke Ahold NV

     746,788        10,739,448   

Koninklijke DSM NV

     114,560        6,715,689   

Koninklijke KPN NV

     743,208        2,539,849   

Koninklijke Philips Electronics NV

     710,272        20,168,632   

Randstad Holding NV

     89,500        3,810,360   

Reed Elsevier NV

     510,508        7,768,684   

Royal Boskalis Westminster NV CVA

     55,848        2,396,283   

Royal Vopak NV

     52,268        3,765,809   

TNT Express NV

     241,292        1,829,628   

Unilever NV CVA

     1,207,892        46,916,185   

Wolters Kluwer NV

     223,392        4,456,707   

Ziggo NV

     88,784        3,006,259   
   

 

 

  
      201,938,315   

PORTUGAL — 0.62%

  

Banco Espirito Santo SA Registereda

     1,487,848        1,791,472   

Energias de Portugal SA

     1,418,396        4,261,274   

Galp Energia SGPS SA Class B

     200,480        3,097,993   

Jeronimo Martins SGPS SA

     163,964        3,272,181   

Portugal Telecom SGPS SA Registeredc

     466,832        2,367,404   
   

 

 

  
      14,790,324   

SPAIN — 10.42%

  

Abertis Infraestructuras SA

     271,364        4,775,174   

Acciona SA

     19,216        1,181,741   

Actividades de Construcciones y Servicios SAc

     105,252        2,504,342   

Amadeus IT Holding SA Class A

     232,700        5,962,720   

Banco Bilbao Vizcaya Argentaria SA

     4,042,536        39,272,911   

Banco de Sabadell SAa

     2,082,844        4,539,252   

Banco Popular Espanol SAa

     4,049,696        3,520,757   

Banco Santander SA

     7,815,856        59,377,151   
 

 

32    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI EMU INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Bankia SAa,c

     687,360      $ 292,051   

CaixaBank

     831,276        3,414,628   

Distribuidora Internacional de Alimentacion SA

     453,944        3,550,694   

Enagas SA

     141,052        3,382,898   

Ferrovial SA

     299,288        4,699,203   

Gas Natural SDG SA

     259,908        5,163,121   

Grifols SAa

     110,980        3,958,773   

Iberdrola SA

     3,492,648        17,305,572   

Industria de Diseno Textil SA

     161,816        21,715,626   

International Consolidated Airlines Group SAa

     691,656        2,509,256   

Mapfre SA

     572,800        1,866,883   

Red Electrica Corporacion SA

     80,192        4,443,078   

Repsol SA

     617,192        13,160,312   

Telefonica SA

     3,037,988        39,717,142   

Zardoya Otis SA

     115,992        1,639,252   
   

 

 

  
      247,952,537   
   

 

 

  

TOTAL COMMON STOCKS

  

  

(Cost: $2,547,773,943)

  

     2,325,040,406   

PREFERRED STOCKS — 2.12%

  

GERMANY — 2.12%

  

  

Bayerische Motoren Werke AG

     39,380        2,564,133   

Henkel AG & Co. KgaA

     131,744        11,627,621   

Porsche Automobil Holding SE

     113,844        9,038,687   

ProSiebenSat.1 Media AG

     77,328        2,668,902   

RWE AG NVS

     30,072        1,079,187   

Volkswagen AG

     107,400        23,483,474   
   

 

 

  
      50,462,004   
   

 

 

  

TOTAL PREFERRED STOCKS

  

  

(Cost: $46,114,701)

  

     50,462,004   

SHORT-TERM INVESTMENTS — 0.73%

  

MONEY MARKET FUNDS — 0.73%

  

  

BlackRock Cash Funds: Institutional,
SL Agency Shares

    

0.21%d,e,f

     15,993,449        15,993,449   

BlackRock Cash Funds: Prime,
SL Agency Shares

    

0.18%d,e,f

     1,157,978        1,157,978   
Security   Shares     Value  
   

BlackRock Cash Funds: Treasury,
SL Agency Shares

    

0.04%d,e

     169,747      $ 169,747   
   

 

 

  
      17,321,174   
   

 

 

  

TOTAL SHORT-TERM INVESTMENTS

  

  

(Cost: $17,321,174)

  

     17,321,174   
   

 

 

  

TOTAL INVESTMENTS
IN SECURITIES — 100.58%

   

  

(Cost: $2,611,209,818)

       2,392,823,584   

Other Assets, Less Liabilities — (0.58)%

  

     (13,762,881 ) 
   

 

 

  

NET ASSETS — 100.00%

     $ 2,379,060,703   
   

 

 

  

FDR  —  Fiduciary Depositary Receipts

NVS  —  Non-Voting Shares

SP ADR  —  Sponsored American Depositary Receipts

 

a 

Non-income earning security.

b 

Security valued using Level 3 inputs in accordance with management’s fair valuation policy. See Note 1.

c 

All or a portion of this security represents a security on loan. See Note 5.

d 

Affiliated issuer. See Note 2.

e 

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

f 

All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

 

 

SCHEDULES OF INVESTMENTS

      33   

Table of Contents

Schedule of Investments (Unaudited)

iSHARES® MSCI FRANCE INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

COMMON STOCKS — 99.97%

  

ADVERTISING — 1.27%

  

  

JCDecaux SA

     29,106      $ 791,476   

Publicis Groupe SA

     77,319        5,116,822   
   

 

 

  
      5,908,298   

AEROSPACE & DEFENSE — 3.81%

  

  

European Aeronautic Defence and Space Co. NV

     197,307        10,106,455   

Safran SA

     99,693        4,572,105   

Thales SA

     39,798        1,404,027   

Zodiac Aerospace

     14,850        1,673,112   
   

 

 

  
      17,755,699   

APPAREL — 4.93%

  

  

Christian Dior SA

     23,760        3,974,465   

LVMH Moet Hennessy Louis Vuitton SA

     110,286        19,017,661   
   

 

 

  
      22,992,126   

AUTO MANUFACTURERS — 1.30%

  

  

PSA Peugeot Citroen SAa,b

     99,990        757,926   

Renault SA

     83,556        5,310,554   
   

 

 

  
      6,068,480   

AUTO PARTS & EQUIPMENT — 1.52%

  

  

Compagnie Generale des Etablissements Michelin Class B

     79,101        7,077,566   
   

 

 

  
      7,077,566   

BANKS — 9.02%

  

  

BNP Paribas SA

     435,501        24,541,932   

Credit Agricole SAa

     434,214        4,087,222   

Natixis

     401,643        1,676,606   

Societe Generalea

     305,019        11,727,727   
   

 

 

  
      42,033,487   

BEVERAGES — 2.84%

  

  

Pernod Ricard SA

     92,169        11,976,213   

Remy Cointreau SA

     9,801        1,240,331   
   

 

 

  
      13,216,544   

BUILDING MATERIALS — 2.87%

  

  

Compagnie de Saint-Gobain

     173,052        6,912,750   

Imerys SA

     14,751        995,477   

Lafarge SA

     81,180        5,480,589   
   

 

 

  
      13,388,816   
Security   Shares     Value  
   

CHEMICALS — 4.14%

  

  

Arkema SA

     27,225      $ 2,769,817   

L’Air Liquide SA

     135,630        16,525,842   
   

 

 

  
      19,295,659   

COMMERCIAL SERVICES — 2.03%

  

  

Bureau Veritas SA

     24,057        3,107,037   

Edenred SA

     73,656        2,551,796   

Sodexo

     40,986        3,801,182   
   

 

 

  
      9,460,015   

COMPUTERS — 1.75%

  

  

Atos SA

     23,859        1,774,517   

Cap Gemini SA

     66,429        3,273,659   

Gemalto NV

     34,353        3,132,121   
   

 

 

  
      8,180,297   

COSMETICS & PERSONAL CARE — 3.38%

  

  

L’Oreal SA

     105,336        15,774,799   
   

 

 

  
      15,774,799   

ELECTRIC — 2.76%

  

  

Electricite de France SA

     104,247        1,974,122   

GDF Suez

     575,190        10,888,594   
   

 

 

  
      12,862,716   

ELECTRICAL COMPONENTS & EQUIPMENT — 4.79%

  

Legrand SA

     103,059        4,744,665   

Schneider Electric SA

     228,591        17,608,153   
   

 

 

  
      22,352,818   

ELECTRONICS — 0.32%

  

  

Rexel SA

     63,558        1,475,724   
   

 

 

  
      1,475,724   

ENGINEERING & CONSTRUCTION — 2.73%

  

  

Aeroports de Paris

     12,969        1,096,990   

Bouygues SA

     82,071        2,321,875   

Vinci SA

     200,376        9,286,539   
   

 

 

  
      12,705,404   

FOOD — 5.81%

  

  

Carrefour SA

     261,855        7,147,979   

Casino Guichard-Perrachon SA

     24,354        2,451,619   

Danone SA

     251,460        17,486,015   
   

 

 

  
      27,085,613   

HEALTH CARE — PRODUCTS — 1.95%

  

  

Essilor International SA

     87,912        9,085,356   
   

 

 

  
      9,085,356   
 

 

34    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI FRANCE INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

HOLDING COMPANIES — DIVERSIFIED — 0.49%

  

  

Eurazeo

     12,870      $ 702,805   

Wendel

     14,256        1,572,267   
   

 

 

  
      2,275,072   

HOUSEHOLD PRODUCTS & WARES — 0.31%

  

  

Societe BIC SA

     12,474        1,458,088   
   

 

 

  
      1,458,088   

INSURANCE — 3.52%

  

  

AXA SA

     768,141        13,361,271   

CNP Assurances SA

     70,191        1,046,112   

SCOR SE

     70,983        2,010,504   
   

 

 

  
      16,417,887   

INTERNET — 0.41%

  

  

Iliad SA

     9,900        1,897,410   
   

 

 

  
      1,897,410   

IRON & STEEL — 1.40%

  

  

ArcelorMittal

     433,818        6,530,756   
   

 

 

  
      6,530,756   

LODGING — 0.50%

  

  

Accor SA

     64,152        2,317,304   
   

 

 

  
      2,317,304   

MACHINERY — 0.88%

  

  

ALSTOM

     93,159        4,116,551   
   

 

 

  
      4,116,551   

MEDIA — 0.39%

  

  

Lagardere SCA

     51,282        1,832,970   
   

 

 

  
      1,832,970   

METAL FABRICATE & HARDWARE — 0.51%

  

  

Vallourec SA

     44,946        2,399,177   
   

 

 

  
      2,399,177   

OIL & GAS — 9.93%

  

  

Total SA

     924,759        46,298,036   
   

 

 

  
      46,298,036   

OIL & GAS SERVICES — 1.39%

  

  

Compagnie Generale de Geophysique-Veritasa

     68,904        1,713,353   

Technip SA

     44,154        4,788,845   
   

 

 

  
      6,502,198   

PHARMACEUTICALS — 10.53%

  

  

Sanofi

     517,275        49,082,919   
   

 

 

  
      49,082,919   
Security   Shares     Value  
   

REAL ESTATE INVESTMENT TRUSTS — 3.00%

  

  

Fonciere des Regions

     11,286      $ 935,009   

Gecina SA

     9,603        1,091,612   

Icade

     10,197        917,976   

Klepierre

     43,461        1,788,370   

Unibail-Rodamco SE

     40,095        9,267,539   
   

 

 

  
      14,000,506   

RETAIL — 1.58%

  

  

PPR SA

     32,868        7,377,947   
   

 

 

  
      7,377,947   

SEMICONDUCTORS — 0.47%

  

  

STMicroelectronics NV

     276,507        2,207,628   
   

 

 

  
      2,207,628   

SOFTWARE — 0.66%

  

  

Dassault Systemes SA

     27,126        3,083,169   
   

 

 

  
      3,083,169   

TELECOMMUNICATIONS — 5.59%

  

  

Eutelsat Communications SA

     57,420        2,071,503   

France Telecom SA

     805,860        7,816,222   

SES SA Class A FDR

     131,670        4,059,033   

Vivendi SA

     573,903        12,094,710   
   

 

 

  
      26,041,468   

TRANSPORTATION — 0.44%

  

  

Groupe Eurotunnel SA Registered

     241,164        2,043,683   
   

 

 

  
      2,043,683   

WATER — 0.75%

  

  

Suez Environnement SA

     122,265        1,632,798   

Veolia Environnement

     147,114        1,853,672   
   

 

 

  
      3,486,470   
   

 

 

  

TOTAL COMMON STOCKS

    

(Cost: $517,768,838)

       466,088,656   

SHORT-TERM INVESTMENTS — 0.17%

  

  

MONEY MARKET FUNDS — 0.17%

    

BlackRock Cash Funds: Institutional,
SL Agency Shares

    

0.21%c,d,e

     752,548        752,548   

BlackRock Cash Funds: Prime,
SL Agency Shares

    

0.18%c,d,e

     54,487        54,487   
 

 

SCHEDULES OF INVESTMENTS

      35   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI FRANCE INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

BlackRock Cash Funds: Treasury,
SL Agency Shares

    

0.04%c,d

     7,830      $ 7,830   
   

 

 

  
      814,865   
   

 

 

  

TOTAL SHORT-TERM INVESTMENTS

    

(Cost: $814,865)

       814,865   
   

 

 

  

TOTAL INVESTMENTS
IN SECURITIES — 100.14%

    

(Cost: $518,583,703)

       466,903,521   

Other Assets, Less Liabilities — (0.14)%

       (659,657 ) 
   

 

 

  

NET ASSETS — 100.00%

     $ 466,243,864   
   

 

 

  

FDR  —  Fiduciary Depositary Receipts

 

a 

Non-income earning security.

b 

All or a portion of this security represents a security on loan. See Note 5.

c 

Affiliated issuer. See Note 2.

d 

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

e 

All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

 

 

36    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited)

iSHARES® MSCI GERMANY INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

COMMON STOCKS — 92.66%

  

AIRLINES — 0.48%

  

  

Deutsche Lufthansa AG Registered

     841,269      $ 16,992,423   
   

 

 

  
      16,992,423   

APPAREL — 2.25%

  

  

Adidas AG

     765,425        69,847,360   

Hugo Boss AG

     90,428        10,499,213   
   

 

 

  
      80,346,573   

AUTO MANUFACTURERS — 9.32%

  

  

Bayerische Motoren Werke AG

     1,211,334        111,963,188   

Daimler AG Registered

     3,319,253        198,159,889   

Volkswagen AG

     107,744        22,234,615   
   

 

 

  
      332,357,692   

AUTO PARTS & EQUIPMENT — 1.33%

  

  

Continental AG

     402,597        47,322,803   
   

 

 

  
      47,322,803   

BANKS — 5.10%

  

  

Commerzbank AGa,b

     13,887,913        25,654,945   

Deutsche Bank AG Registered

     3,400,638        156,003,989   
   

 

 

  
      181,658,934   

BUILDING MATERIALS — 1.00%

  

  

HeidelbergCement AG

     514,483        35,527,231   
   

 

 

  
      35,527,231   

CHEMICALS — 14.66%

  

  

BASF SE

     3,360,304        317,093,529   

Brenntag AG

     188,552        26,918,181   

K+S AG Registered

     631,072        29,705,281   

Lanxess AG

     304,954        25,882,414   

Linde AG

     677,248        122,982,101   
   

 

 

  
      522,581,506   

COSMETICS & PERSONAL CARE — 0.90%

  

  

Beiersdorf AG

     368,927        32,213,938   
   

 

 

  
      32,213,938   

DIVERSIFIED FINANCIAL SERVICES — 1.23%

  

  

Deutsche Boerse AG

     706,102        43,834,476   
   

 

 

  
      43,834,476   

ELECTRIC — 4.94%

  

  

E.ON SE

     6,588,705        110,169,795   

RWE AG

     1,790,440        65,856,496   
   

 

 

  
      176,026,291   
Security   Shares     Value  
   

ENGINEERING & CONSTRUCTION — 0.44%

  

  

Fraport AG

     135,161      $ 8,043,509   

Hochtief AGa

     113,035        7,616,392   
   

 

 

  
      15,659,901   

FOOD — 0.78%

  

  

METRO AG

     474,272        14,694,938   

Suedzucker AG

     299,182        13,122,601   
   

 

 

  
      27,817,539   

HEALTH CARE — PRODUCTS — 2.09%

  

  

Fresenius SE & Co. KgaA

     455,988        56,120,243   

QIAGEN NVa

     864,357        18,396,681   
   

 

 

  
      74,516,924   

HEALTH CARE — SERVICES — 1.49%

  

  

Fresenius Medical Care AG & Co. KgaA

     773,929        53,149,655   
   

 

 

  
      53,149,655   

HOLDING COMPANIES — DIVERSIFIED — 0.65%

  

  

GEA Group AG

     653,198        23,291,719   
   

 

 

  
      23,291,719   

HOUSEHOLD PRODUCTS & WARES — 0.99%

  

  

Henkel AG & Co. KgaA

     475,709        35,244,107   
   

 

 

  
      35,244,107   

INSURANCE — 10.20%

  

  

Allianz SE Registered

     1,668,108        228,329,896   

Hannover Rueckversicherung AG Registered

     220,779        17,297,923   

Muenchener Rueckversicherungs-Gesellschaft AG Registered

     656,130        118,117,914   
   

 

 

  
      363,745,733   

INTERNET — 0.24%

  

  

United Internet AG Registered

     355,582        8,397,880   
   

 

 

  
      8,397,880   

IRON & STEEL — 1.09%

  

  

Salzgitter AG

     143,819        6,871,257   

ThyssenKrupp AGa

     1,411,730        31,883,180   
   

 

 

  
      38,754,437   

MACHINERY — 0.50%

  

  

MAN SE

     154,882        17,818,681   
   

 

 

  
      17,818,681   
 

 

SCHEDULES OF INVESTMENTS

      37   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI GERMANY INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

MANUFACTURING — 8.95%

  

  

Siemens AG Registered

     3,063,489      $ 318,882,313   
   

 

 

  
      318,882,313   

MEDIA — 0.98%

  

  

Axel Springer AG

     145,743        6,878,390   

Kabel Deutschland Holding AG

     324,194        28,155,365   
   

 

 

  
      35,033,755   

PHARMACEUTICALS — 9.51%

  

  

Bayer AG Registered

     3,025,437        300,049,484   

Celesio AG

     312,650        5,661,091   

Merck KgaA

     236,652        33,413,800   
   

 

 

  
      339,124,375   

SEMICONDUCTORS — 0.95%

  

  

Infineon Technologies AG

     3,952,010        33,898,463   
   

 

 

  
      33,898,463   

SOFTWARE — 7.40%

  

  

SAP AG

     3,370,462        263,721,491   
   

 

 

  
      263,721,491   

TELECOMMUNICATIONS — 3.10%

  

  

Deutsche Telekom AG Registered

     10,276,372        110,528,238   
   

 

 

  
      110,528,238   

TRANSPORTATION — 2.09%

  

  

Deutsche Post AG Registered

     3,317,446        74,532,439   
   

 

 

  
      74,532,439   
   

 

 

  

TOTAL COMMON STOCKS

  

  

(Cost: $3,479,721,940)

  

     3,302,979,517   

PREFERRED STOCKS — 6.98%

  

AUTO MANUFACTURERS — 4.85%

  

  

Bayerische Motoren Werke AG

     196,248        12,778,213   

Porsche Automobil Holding SE

     560,218        44,478,719   

Volkswagen AG

     529,097        115,689,344   
   

 

 

  
      172,946,276   

ELECTRIC — 0.14%

  

  

RWE AG NVS

     142,857        5,126,675   
   

 

 

  
      5,126,675   

HOUSEHOLD PRODUCTS & WARES — 1.62%

  

  

Henkel AG & Co. KgaA

     651,806        57,527,883   
   

 

 

  
      57,527,883   
Security   Shares     Value  
   

MEDIA — 0.37%

  

  

ProSiebenSat.1 Media AG

     381,914      $ 13,181,397   
   

 

 

  
    13,181,397   
   

 

 

  

TOTAL PREFERRED STOCKS

  

  

(Cost: $208,613,099)

  

     248,782,231   

SHORT-TERM INVESTMENTS — 0.23%

  

MONEY MARKET FUNDS — 0.23%

  

  

BlackRock Cash Funds: Institutional, SL Agency Shares

    

0.21%c,d,e

     7,459,880        7,459,880   

BlackRock Cash Funds: Prime,
SL Agency Shares

    

0.18%c,d,e

     540,120        540,120   

BlackRock Cash Funds: Treasury,
SL Agency Shares

    

0.04%c,d

     180,312        180,312   
   

 

 

  
    8,180,312   
   

 

 

  

TOTAL SHORT-TERM INVESTMENTS

  

  

(Cost: $8,180,312)

  

     8,180,312   
   

 

 

  

TOTAL INVESTMENTS
IN SECURITIES — 99.87%

   

  

(Cost: $3,696,515,351)

  

     3,559,942,060   

Other Assets, Less Liabilities — 0.13%

  

     4,775,438   
   

 

 

  

NET ASSETS — 100.00%

  

   $ 3,564,717,498   
   

 

 

  

NVS  —  Non-Voting Shares

 

a 

Non-income earning security.

b 

All or a portion of this security represents a security on loan. See Note 5.

c 

Affiliated issuer. See Note 2.

d 

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

e 

All or a portion of this security represents an investment of securities lending collateral. See Note 5.

Financial futures contracts purchased as of February 28, 2013 were as follows:

 

Number of
Contracts		      Issue
(Expiration)		   Exchange   Notional
Value		     Net
Unrealized
Appreciation
(Depreciation)		  
  50      

DAX Index

(Mar. 2013)

   Eurex     $12,665,772        $234,506   
                              

See notes to financial statements.

 

 

38    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited)

iSHARES® MSCI ITALY CAPPED INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

COMMON STOCKS — 99.91%

  

AEROSPACE & DEFENSE — 2.66%

  

  

Finmeccanica SpAa,b

     2,977,211      $ 14,658,241   
   

 

 

  
      14,658,241   

AUTO MANUFACTURERS — 8.39%

  

  

Fiat Industrial SpA

     2,069,778        25,205,688   

Fiat SpAa

     3,920,343        21,064,823   
   

 

 

  
      46,270,511   

AUTO PARTS & EQUIPMENT — 3.14%

  

  

Pirelli & C. SpAb

     1,489,438        17,320,496   
   

 

 

  
      17,320,496   

BANKS — 22.62%

  

  

Banca Monte dei Paschi di Siena SpAa,b

     49,347,031        13,612,422   

Banco Popolare Scrla,b

     9,925,388        16,764,938   

Intesa Sanpaolo SpA

     12,807,209        20,812,179   

Intesa Sanpaolo SpA RNC

     2,179,434        3,020,240   

Mediobanca SpA

     2,971,197        18,093,512   

UniCredit SpAa

     6,238,736        31,743,980   

Unione di Banche Italiane SpA

     4,525,881        20,756,525   
   

 

 

  
      124,803,796   

COMMERCIAL SERVICES — 4.27%

  

  

Atlantia SpA

     1,358,953        23,540,314   
   

 

 

  
      23,540,314   

ELECTRIC — 11.23%

  

  

Enel SpA

     10,750,477        38,959,457   

Terna SpA

     5,500,358        23,025,242   
   

 

 

  
      61,984,699   

ELECTRICAL COMPONENTS & EQUIPMENT — 3.85%

  

Prysmian SpA

     972,516        21,219,983   
   

 

 

  
      21,219,983   

ENERGY — ALTERNATE SOURCES — 0.58%

  

  

Enel Green Power SpA

     1,739,897        3,223,186   
   

 

 

  
      3,223,186   

GAS — 0.58%

  

  

Snam SpA

     672,403        3,192,768   
   

 

 

  
      3,192,768   

HEALTH CARE — PRODUCTS — 4.73%

  

  

Luxottica Group SpA

     561,280        26,093,555   
   

 

 

  
      26,093,555   
Security   Shares     Value  
   

HOLDING COMPANIES — DIVERSIFIED — 2.58%

  

  

Exor SpA

     507,667      $ 14,242,971   
   

 

 

  
      14,242,971   

INSURANCE — 4.96%

  

  

Assicurazioni Generali SpA

     1,686,343        27,381,639   
   

 

 

  
      27,381,639   

METAL FABRICATE & HARDWARE — 4.59%

  

  

Tenaris SA

     1,228,025        25,302,029   
   

 

 

  
      25,302,029   

OIL & GAS — 20.79%

  

  

Eni SpA

     5,024,130        114,682,471   
   

 

 

  
      114,682,471   

OIL & GAS SERVICES — 0.58%

  

  

Saipem SpA

     120,448        3,224,939   
   

 

 

  
      3,224,939   

TELECOMMUNICATIONS — 4.36%

  

  

Telecom Italia SpA

     21,105,751        15,603,620   

Telecom Italia SpA RNC

     13,119,574        8,473,027   
   

 

 

  
      24,076,647   
   

 

 

  

TOTAL COMMON STOCKS

  

  

(Cost: $574,706,251)

  

     551,218,245   

SHORT-TERM INVESTMENTS — 6.17%

  

MONEY MARKET FUNDS — 6.17%

  

  

BlackRock Cash Funds: Institutional,
SL Agency Shares

    

0.21%c,d,e

     31,601,604        31,601,604   

BlackRock Cash Funds: Prime,
SL Agency Shares

    

0.18%c,d,e

     2,288,061        2,288,061   

BlackRock Cash Funds: Treasury,
SL Agency Shares

    

0.04%c,d

     137,485        137,485   
   

 

 

  
      34,027,150   
   

 

 

  

TOTAL SHORT-TERM INVESTMENTS

  

  

(Cost: $34,027,150)

  

     34,027,150   
   

 

 

  
 

 

SCHEDULES OF INVESTMENTS

      39   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI ITALY CAPPED INDEX FUND

February 28, 2013

 

          Value  
   

TOTAL INVESTMENTS
IN SECURITIES — 106.08%

  

(Cost: $608,733,401)

     $ 585,245,395   

Other Assets, Less Liabilities — (6.08)%

     (33,550,594 ) 
   

 

 

  

NET ASSETS — 100.00%

   $ 551,694,801   
   

 

 

  

 

a 

Non-income earning security.

b 

All or a portion of this security represents a security on loan. See Note 5.

c 

Affiliated issuer. See Note 2.

d 

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

e 

All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

 

 

40    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited)

iSHARES® MSCI NETHERLANDS INVESTABLE MARKET INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

COMMON STOCKS — 99.79%

  

BANKS — 0.00%

  

  

SNS REAAL NVa,b,c

     68,952      $ 1   
   

 

 

  
      1   

BEVERAGES — 9.34%

  

  

D.E Master Blenders 1753 NVa

     268,128        3,235,809   

Heineken Holding NV

     51,891        3,256,306   

Heineken NV

     99,666        7,451,763   
   

 

 

  
      13,943,878   

CHEMICALS — 7.91%

  

  

Akzo Nobel NV

     113,337        7,250,014   

Koninklijke DSM NV

     77,910        4,567,208   
   

 

 

  
      11,817,222   

COMMERCIAL SERVICES — 2.05%

  

  

Brunel International NV

     5,292        264,736   

Randstad Holding NV

     59,829        2,547,151   

USG People NV

     30,135        242,292   
   

 

 

  
      3,054,179   

DIVERSIFIED FINANCIAL SERVICES — 0.18%

  

  

BinckBank NV

     27,195        275,396   
   

 

 

  
      275,396   

ELECTRICAL COMPONENTS & EQUIPMENT — 0.30%

  

TKH Group NV

     17,007        445,683   
   

 

 

  
      445,683   

ELECTRONICS — 9.31%

  

  

Koninklijke Philips Electronics NV

     489,657        13,904,127   
   

 

 

  
      13,904,127   

ENGINEERING & CONSTRUCTION — 2.29%

  

  

Arcadis NV

     29,649        829,499   

Grontmij NVa

     24,843        109,193   

Koninklijke BAM Groep NV

     112,048        457,036   

Royal Boskalis Westminster NV CVA

     38,073        1,633,607   

Royal Imtech NVb

     34,798        389,785   
   

 

 

  
      3,419,120   

FOOD — 27.96%

  

  

Amsterdam Commodities NV

     9,408        187,568   

CSM NV CVA

     35,280        789,401   

Koninklijke Ahold NV

     505,680        7,272,109   

Koninklijke Wessanen NV

     39,396        109,395   

Nutreco NV

     18,228        1,697,676   
Security   Shares     Value  
   

Unilever NV CVA

     815,703      $ 31,683,026   
   

 

 

  
      41,739,175   

HOLDING COMPANIES — DIVERSIFIED — 0.47%

  

  

Tetragon Financial Group Ltd.

     62,769        701,130   
   

 

 

  
      701,130   

INSURANCE — 14.82%

  

  

AEGON NV

     882,441        5,286,067   

Delta Lloyd NV

     86,730        1,537,521   

ING Groep NV CVAa

     1,901,445        15,307,892   
   

 

 

  
      22,131,480   

LEISURE TIME — 0.10%

  

  

Accell Group NV

     8,379        143,282   
   

 

 

  
      143,282   

MACHINERY — 0.07%

  

  

Kendrion NV

     4,410        107,669   
   

 

 

  
      107,669   

MANUFACTURING — 0.90%

  

  

Aalberts Industries NV

     46,599        1,032,615   

Koninklijke Ten Cate NV

     12,936        312,616   
   

 

 

  
      1,345,231   

MEDIA — 5.59%

  

  

Reed Elsevier NV

     349,272        5,315,066   

Wolters Kluwer NV

     151,851        3,029,453   
   

 

 

  
      8,344,519   

METAL FABRICATE & HARDWARE — 0.08%

  

  

AMG Advanced Metallurgical Group NVa

     13,671        114,511   
   

 

 

  
      114,511   

OIL & GAS SERVICES — 1.88%

  

  

Fugro NV CVA

     34,251        1,634,175   

SBM Offshore NVa

     84,023        1,179,762   
   

 

 

  
      2,813,937   

REAL ESTATE INVESTMENT TRUSTS — 2.41%

  

  

Corio NV

     33,663        1,555,070   

Eurocommercial Properties NV

     19,110        732,765   

Nieuwe Steen Investments NV

     24,990        179,852   

VastNed Retail NV

     9,522        403,272   

Wereldhave NV

     10,257        720,760   
   

 

 

  
      3,591,719   

RETAIL — 0.12%

  

  

Beter Bed Holding NV

     8,967        174,673   
   

 

 

  
      174,673   
 

 

SCHEDULES OF INVESTMENTS

      41   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI NETHERLANDS INVESTABLE MARKET INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

SEMICONDUCTORS — 8.22%

  

  

ASM International NV

     24,843      $ 988,970   

ASML Holding NV

     156,702        11,169,207   

BE Semiconductor Industries NV

     15,582        121,208   
   

 

 

  
      12,279,385   

SOFTWARE — 0.43%

  

  

TomTom NVa,b

     47,922        202,425   

Unit4 NV

     13,377        443,943   
   

 

 

  
      646,368   

TELECOMMUNICATIONS — 2.50%

  

  

Koninklijke KPN NV

     493,495        1,686,476   

Ziggo NV

     60,417        2,045,742   
   

 

 

  
      3,732,218   

TRANSPORTATION — 2.86%

  

  

PostNL NVa

     204,646        485,057   

Royal Vopak NV

     35,574        2,563,038   

TNT Express NV

     160,721        1,218,688   
   

 

 

  
      4,266,783   
   

 

 

  

TOTAL COMMON STOCKS

  

  

(Cost: $170,546,387)

       148,991,686   

WARRANTS — 0.00%

  

  

REAL ESTATE INVESTMENT TRUSTS — 0.00%

  

  

Nieuwe Steen Investments NV
(Expires 4/01/13)a,c

     6,200        —   
   

 

 

  
      —   
   

 

 

  

TOTAL WARRANTS

  

  

(Cost: $0)

  

     —   

SHORT-TERM INVESTMENTS — 0.43%

  

  

MONEY MARKET FUNDS — 0.43%

  

  

BlackRock Cash Funds: Institutional,
SL Agency Shares

   

  

0.21%d,e,f

     590,679        590,679   

BlackRock Cash Funds: Prime,
SL Agency Shares

   

  

0.18%d,e,f

     42,767        42,767   
Security   Shares     Value  
   

BlackRock Cash Funds: Treasury,
SL Agency Shares

   

  

0.04%d,e

     4,121      $ 4,121   
   

 

 

  
      637,567   
   

 

 

  

TOTAL SHORT-TERM INVESTMENTS

  

  

(Cost: $637,567)

  

     637,567   
   

 

 

  

TOTAL INVESTMENTS
IN SECURITIES — 100.22%

   

  

(Cost: $171,183,954)

       149,629,253   

Other Assets, Less Liabilities — (0.22)%

  

     (323,266 ) 
   

 

 

  

NET ASSETS — 100.00%

  

   $ 149,305,987   
   

 

 

  

 

a 

Non-income earning security.

b 

All or a portion of this security represents a security on loan. See Note 5.

c 

Security valued using Level 3 inputs in accordance with management’s fair valuation policy. See Note 1.

d 

Affiliated issuer. See Note 2.

e 

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

f 

All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

 

 

42    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited)

iSHARES® MSCI SPAIN CAPPED INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

COMMON STOCKS — 99.94%

  

AIRLINES — 2.22%

  

  

International Consolidated Airlines Group SAa

     1,742,958      $ 6,323,272   
   

 

 

  
      6,323,272   

BANKS — 40.26%

  

  

Banco Bilbao Vizcaya Argentaria SA

     3,513,636        34,134,690   

Banco de Sabadell SAa

     3,539,340        7,713,470   

Banco Popular Espanol SAa

     8,568,630        7,449,463   

Banco Santander SA

     7,509,348        57,048,606   

Bankia SAa,b

     4,391,856        1,866,051   

CaixaBank

     1,518,678        6,238,265   
   

 

 

  
      114,450,545   

COMMERCIAL SERVICES — 3.10%

  

  

Abertis Infraestructuras SA

     500,472        8,806,772   
   

 

 

  
      8,806,772   

ELECTRIC — 7.50%

  

  

Iberdrola SA

     2,608,326        12,923,883   

Red Electrica Corporacion SA

     151,578        8,398,255   
   

 

 

  
      21,322,138   

ENGINEERING & CONSTRUCTION — 6.71%

  

  

Acciona SAb

     69,300        4,261,794   

Actividades de Construcciones y Servicios SAb

     257,922        6,136,938   

Ferrovial SA

     553,014        8,683,025   
   

 

 

  
      19,081,757   

FOOD — 2.57%

  

  

Distribuidora Internacional de Alimentacion SA

     933,408        7,301,002   
   

 

 

  
      7,301,002   

GAS — 5.75%

  

  

Enagas SA

     298,998        7,170,971   

Gas Natural SDG SA

     461,538        9,168,538   
   

 

 

  
      16,339,509   

INSURANCE — 1.90%

  

  

Mapfre SA

     1,660,932        5,413,349   
   

 

 

  
      5,413,349   
Security   Shares     Value  
   

MACHINERY — 1.80%

  

  

Zardoya Otis SA

     362,124      $ 5,117,701   
   

 

 

  
      5,117,701   

OIL & GAS — 4.70%

  

  

Repsol SA

     626,346        13,355,502   
   

 

 

  
      13,355,502   

PHARMACEUTICALS — 2.74%

  

  

Grifols SAa

     218,358        7,789,059   
   

 

 

  
      7,789,059   

RETAIL — 4.49%

  

  

Industria de Diseno Textil SA

     95,130        12,766,398   
   

 

 

  
      12,766,398   

SOFTWARE — 3.51%

  

  

Amadeus IT Holding SA Class A

     389,088        9,970,016   
   

 

 

  
      9,970,016   

TELECOMMUNICATIONS — 12.69%

  

  

Telefonica SA

     2,760,534        36,089,846   
   

 

 

  
      36,089,846   
   

 

 

  

TOTAL COMMON STOCKS

  

  

(Cost: $308,470,784)

  

     284,126,866   

SHORT-TERM INVESTMENTS — 1.67%

  

MONEY MARKET FUNDS — 1.67%

  

  

BlackRock Cash Funds: Institutional, SL Agency Shares

    

0.21%c,d,e

     4,367,020        4,367,020   

BlackRock Cash Funds: Prime, SL Agency Shares

    

0.18%c,d,e

     316,187        316,187   

BlackRock Cash Funds: Treasury, SL Agency Shares

    

0.04%c,d

     57,417        57,417   
   

 

 

  
      4,740,624   
   

 

 

  

TOTAL SHORT-TERM INVESTMENTS

  

  

(Cost: $4,740,624)

  

     4,740,624   
   

 

 

  
 

 

SCHEDULES OF INVESTMENTS

      43   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI SPAIN CAPPED INDEX FUND

February 28, 2013

 

          Value  
   

TOTAL INVESTMENTS
IN SECURITIES — 101.61%

  

(Cost: $313,211,408)

   $ 288,867,490   

Other Assets, Less Liabilities — (1.61)%

     (4,587,514 ) 
   

 

 

  

NET ASSETS — 100.00%

   $ 284,279,976   
   

 

 

  

 

a 

Non-income earning security.

b 

All or a portion of this security represents a security on loan. See Note 5.

c 

Affiliated issuer. See Note 2.

d 

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

e 

All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

 

 

44    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited)

iSHARES® MSCI SWEDEN INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

COMMON STOCKS — 99.99%

  

AGRICULTURE — 1.78%

  

  

Swedish Match AB

     213,164      $ 7,004,598   
   

 

 

  
      7,004,598   

AUTO MANUFACTURERS — 7.76%

  

  

Scania AB Class B

     333,753        6,969,693   

Volvo AB Class B

     1,564,115        23,538,772   
   

 

 

  
      30,508,465   

BANKS — 22.70%

  

  

Nordea Bank AB

     2,747,787        31,909,372   

Skandinaviska Enskilda Banken AB Class A

     1,480,073        15,465,506   

Svenska Handelsbanken AB Class A

     518,742        22,623,284   

Swedbank AB Class A

     795,823        19,199,515   
   

 

 

  
      89,197,677   

COMMERCIAL SERVICES — 0.78%

  

  

Securitas AB Class B

     326,669        3,053,573   
   

 

 

  
      3,053,573   

ENGINEERING & CONSTRUCTION — 1.79%

  

  

Skanska AB Class B

     394,450        7,025,500   
   

 

 

  
      7,025,500   

FOREST PRODUCTS & PAPER — 3.77%

  

  

Svenska Cellulosa AB Class B

     604,072        14,817,126   
   

 

 

  
      14,817,126   

HAND & MACHINE TOOLS — 4.33%

  

  

Sandvik AB

     1,044,407        17,030,048   
   

 

 

  
      17,030,048   

HEALTH CARE — PRODUCTS — 3.06%

  

  

Elekta AB Class B

     381,892        5,747,192   

Getinge AB Class B

     207,529        6,268,853   
   

 

 

  
      12,016,045   

HOLDING COMPANIES — DIVERSIFIED — 5.91%

  

  

Industrivarden AB Class C

     126,224        2,259,910   

Investment AB Kinnevik Class B

     214,613        4,911,243   

Investor AB Class B

     475,272        13,973,166   

Ratos AB Class B

     202,860        2,091,389   
   

 

 

  
      23,235,708   
Security   Shares     Value  
   

HOME FURNISHINGS — 1.63%

  

  

Electrolux AB Class B

     250,194      $ 6,408,662   
   

 

 

  
      6,408,662   

HOUSEHOLD PRODUCTS & WARES — 0.67%

  

  

Husqvarna AB Class B

     421,176        2,611,807   
   

 

 

  
      2,611,807   

MACHINERY — 9.66%

  

  

Atlas Copco AB Class A

     697,130        20,333,634   

Atlas Copco AB Class B

     406,042        10,545,564   

Hexagon AB Class B

     246,974        7,065,706   
   

 

 

  
      37,944,904   

MANUFACTURING — 2.08%

  

  

Alfa Laval AB

     350,014        8,172,695   
   

 

 

  
      8,172,695   

METAL FABRICATE & HARDWARE — 6.10%

  

  

Assa Abloy AB Class B

     348,565        13,871,216   

SKF AB Class B

     408,457        10,082,307   
   

 

 

  
      23,953,523   

MINING — 1.24%

  

  

Boliden AB

     285,292        4,859,989   
   

 

 

  
      4,859,989   

OIL & GAS — 1.34%

  

  

Lundin Petroleum ABa

     230,874        5,261,871   
   

 

 

  
      5,261,871   

RETAIL — 9.03%

  

  

Hennes & Mauritz AB Class B

     985,320        35,480,998   
   

 

 

  
      35,480,998   

TELECOMMUNICATIONS — 16.36%

  

  

Millicom International Cellular SA SDR

     65,527        5,159,406   

Tele2 AB Class B

     328,440        5,248,518   

Telefonaktiebolaget LM Ericsson Class B

     3,158,498        38,442,971   

TeliaSonera AB

     2,244,501        15,454,341   
   

 

 

  
      64,305,236   
   

 

 

  

TOTAL COMMON STOCKS

  

  

(Cost: $380,773,698)

       392,888,425   
 

 

SCHEDULES OF INVESTMENTS

      45   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI SWEDEN INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

SHORT-TERM INVESTMENTS — 0.00%

  

  

MONEY MARKET FUNDS — 0.00%

  

  

BlackRock Cash Funds: Treasury,
SL Agency Shares

0.04%b,c

    12,420      $ 12,420   
   

 

 

  
      12,420   
   

 

 

  

TOTAL SHORT-TERM INVESTMENTS

    

(Cost: $12,420)

       12,420   
   

 

 

  

TOTAL INVESTMENTS
IN SECURITIES — 99.99%

    

(Cost: $380,786,118)

       392,900,845   

Other Assets, Less Liabilities — 0.01%

       52,677   
   

 

 

  

NET ASSETS — 100.00%

     $ 392,953,522   
   

 

 

  

 

SDR  —  Swedish Depositary Receipts

 

a 

Non-income earning security.

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.

 

 

46    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited)

iSHARES® MSCI SWITZERLAND CAPPED INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

COMMON STOCKS — 98.88%

  

BANKS — 8.10%

  

  

Banque Cantonale Vaudoise Registered

     4,807      $ 2,750,684   

Credit Suisse Group AG Registered

     946,352        25,463,886   

UBS AG Registereda

     2,082,894        33,100,426   
   

 

 

  
      61,314,996   

BUILDING MATERIALS — 4.07%

  

  

Geberit AG Registereda

     36,784        8,931,906   

Holcim Ltd. Registereda

     196,878        15,981,042   

Sika AG Bearer

     2,347        5,849,895   
   

 

 

  
      30,762,843   

CHEMICALS — 6.19%

  

  

EMS-Chemie Holding AG Registered

     6,270        1,775,447   

Givaudan SA Registereda

     7,920        9,505,358   

Lonza Group AG Registereda

     68,970        4,327,254   

Syngenta AG Registered

     73,150        31,205,546   
   

 

 

  
      46,813,605   

COMMERCIAL SERVICES — 2.67%

  

  

Adecco SA Registereda

     132,088        7,565,478   

SGS SA Registered

     4,940        12,609,387   
   

 

 

  
      20,174,865   

DIVERSIFIED FINANCIAL SERVICES — 1.60%

  

  

Julius Baer Group Ltd.a

     215,270        8,193,732   

Partners Group Holding AG

     16,929        3,929,298   
   

 

 

  
      12,123,030   

ENGINEERING & CONSTRUCTION — 4.42%

  

  

ABB Ltd. Registereda

     1,457,148        33,430,710   
   

 

 

  
      33,430,710   

FOOD — 21.66%

  

  

Aryzta AGa

     100,320        5,788,933   

Barry Callebaut AG Registereda

     2,806        2,751,275   

Lindt & Spruengli AG Participation Certificatesa

     1,254        4,547,295   

Lindt & Spruengli AG Registereda

     133        5,700,102   

Nestle SA Registered

     2,067,637        145,124,543   
   

 

 

  
      163,912,148   

HAND & MACHINE TOOLS — 1.65%

  

  

Schindler Holding AG Participation Certificates

     50,160        7,804,578   

Schindler Holding AG Registered

     30,723        4,642,030   
   

 

 

  
      12,446,608   
Security   Shares     Value  
   

HEALTH CARE — PRODUCTS — 0.82%

  

  

Sonova Holding AG Registereda

     51,623      $ 6,206,709   
   

 

 

  
      6,206,709   

HOLDING COMPANIES — DIVERSIFIED — 0.41%

  

  

Pargesa Holding SA Bearer

     43,681        3,133,779   
   

 

 

  
      3,133,779   

INSURANCE — 8.56%

  

  

Baloise Holding AG Registered

     56,430        5,085,473   

Swiss Life Holding AG Registereda

     36,366        5,993,453   

Swiss Re AGa

     280,060        22,493,031   

Zurich Insurance Group AGa

     113,487        31,193,116   
   

 

 

  
      64,765,073   

MANUFACTURING — 0.71%

  

  

Sulzer AG Registered

     30,723        5,402,534   
   

 

 

  
      5,402,534   

OIL & GAS — 2.00%

  

  

Transocean Ltd.

     286,330        15,132,657   
   

 

 

  
      15,132,657   

PHARMACEUTICALS — 26.25%

  

  

Actelion Ltd. Registereda

     125,818        6,520,101   

Novartis AG Registered

     1,386,088        94,539,757   

Roche Holding AG Genusschein

     424,270        97,611,197   
   

 

 

  
      198,671,055   

REAL ESTATE — 0.61%

  

  

Swiss Prime Site AG Registereda

     57,475        4,634,584   
   

 

 

  
      4,634,584   

RETAIL — 7.06%

  

  

Compagnie Financiere Richemont SA Class A Bearer

     405,669        32,755,207   

Swatch Group AG (The) Bearer

     26,334        15,040,744   

Swatch Group AG (The) Registered

     54,758        5,589,048   
   

 

 

  
      53,384,999   

TELECOMMUNICATIONS — 1.30%

  

  

Swisscom AG Registered

     21,527        9,836,169   
   

 

 

  
      9,836,169   

TRANSPORTATION — 0.80%

  

  

Kuehne & Nagel International AG Registered

     52,668        6,084,023   
   

 

 

  
      6,084,023   
   

 

 

  

TOTAL COMMON STOCKS

  

  

(Cost: $632,273,606)

  

     748,230,387   
 

 

SCHEDULES OF INVESTMENTS

      47   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI SWITZERLAND CAPPED INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

SHORT-TERM INVESTMENTS — 0.00%

  

MONEY MARKET FUNDS — 0.00%

  

  

BlackRock Cash Funds: Treasury,
SL Agency Shares

    

0.04%b,c

     3,516      $ 3,516   
   

 

 

  
      3,516   
   

 

 

  

TOTAL SHORT-TERM INVESTMENTS

  

  

(Cost: $3,516)

  

     3,516   
   

 

 

  

TOTAL INVESTMENTS
IN SECURITIES — 98.88%

   

     748,233,903   

(Cost: $632,277,122)

  

  

Other Assets, Less Liabilities — 1.12%

  

     8,473,946   
   

 

 

  

NET ASSETS — 100.00%

  

   $ 756,707,849   
   

 

 

  

 

a 

Non-income earning security.

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.

 

 

48    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited)

iSHARES® MSCI UNITED KINGDOM INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

COMMON STOCKS — 99.42%

  

ADVERTISING — 0.81%

  

  

WPP PLC

     728,617      $ 11,657,288   
   

 

 

  
      11,657,288   

AEROSPACE & DEFENSE — 2.24%

  

  

BAE Systems PLC

     1,874,274        10,102,791   

Cobham PLC

     623,555        2,190,260   

Meggitt PLC

     452,328        3,121,336   

Rolls-Royce Holdings PLCa

     1,079,893        16,851,224   
   

 

 

  
      32,265,611   

AGRICULTURE — 5.47%

  

  

British American Tobacco PLC

     1,115,181        58,138,858   

Imperial Tobacco Group PLC

     569,821        20,672,546   
   

 

 

  
      78,811,404   

APPAREL — 0.37%

  

  

Burberry Group PLC

     254,234        5,310,185   
   

 

 

  
      5,310,185   

AUTO PARTS & EQUIPMENT — 0.27%

  

  

GKN PLC

     939,944        3,895,133   
   

 

 

  
      3,895,133   

BANKS — 14.78%

  

  

Barclays PLC

     6,707,126        31,255,932   

HSBC Holdings PLC

     10,598,831        117,671,297   

Lloyds Banking Group PLCa

     24,327,467        20,114,622   

Royal Bank of Scotland Group PLCa

     1,223,451        6,015,270   

Standard Chartered PLC

     1,387,059        37,814,546   
   

 

 

  
      212,871,667   

BEVERAGES — 4.92%

  

  

Diageo PLC

     1,445,204        43,436,214   

SABMiller PLC

     551,776        27,447,125   
   

 

 

  
      70,883,339   

CHEMICALS — 0.50%

  

  

Croda International PLC

     77,794        3,060,827   

Johnson Matthey PLC

     118,696        4,144,017   
   

 

 

  
      7,204,844   

COMMERCIAL SERVICES — 2.52%

  

  

Aggreko PLC

     155,187        3,995,202   

Babcock International Group PLC

     208,119        3,389,761   

Bunzl PLC

     191,678        3,668,977   
Security   Shares     Value  
   

Capita PLC

     376,940      $ 4,711,872   

Experian PLC

     581,851        9,662,438   

G4S PLC

     814,431        3,586,407   

Intertek Group PLC

     93,032        4,715,268   

Serco Group PLC

     288,720        2,500,289   
   

 

 

  
      36,230,214   

DISTRIBUTION & WHOLESALE — 0.52%

  

  

Wolseley PLC

     158,395        7,470,339   
   

 

 

  
      7,470,339   

DIVERSIFIED FINANCIAL SERVICES — 1.50%

  

  

Aberdeen Asset Management PLC

     499,245        3,257,908   

Hargreaves Lansdown PLC

     137,142        1,804,875   

ICAP PLC

     314,785        1,591,167   

Investec PLC

     314,785        2,290,708   

London Stock Exchange Group PLC

     101,854        2,062,488   

Old Mutual PLC

     2,823,441        8,678,834   

Schroders PLC

     65,363        1,976,419   
   

 

 

  
      21,662,399   

ELECTRIC — 0.83%

  

  

SSE PLC

     546,162        11,988,018   
   

 

 

  
      11,988,018   

ENGINEERING & CONSTRUCTION — 0.12%

  

  

Balfour Beatty PLC

     395,787        1,714,641   
   

 

 

  
      1,714,641   

FOOD — 5.10%

  

  

Associated British Foods PLC

     205,312        5,771,822   

J Sainsbury PLC

     708,166        3,717,215   

Tate & Lyle PLC

     269,472        3,323,492   

Tesco PLC

     4,635,560        26,007,091   

Unilever PLC

     740,246        29,529,701   

Wm Morrison Supermarkets PLC

     1,300,042        5,122,945   
   

 

 

  
      73,472,266   

FOOD SERVICE — 0.90%

  

  

Compass Group PLC

     1,064,655        12,936,829   
   

 

 

  
      12,936,829   

GAS — 2.72%

  

  

Centrica PLC

     2,993,866        16,001,327   

National Grid PLC

     2,097,230        23,223,570   
   

 

 

  
      39,224,897   
 

 

SCHEDULES OF INVESTMENTS

      49   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI UNITED KINGDOM INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

HEALTH CARE — PRODUCTS — 0.39%

  

  

Smith & Nephew PLC

     520,498      $ 5,585,938   
   

 

 

  
      5,585,938   

HOUSEHOLD PRODUCTS & WARES — 1.74%

  

  

Reckitt Benckiser Group PLC

     373,732        25,126,013   
   

 

 

  
      25,126,013   

INSURANCE — 3.88%

  

  

Admiral Group PLC

     117,894        2,238,755   

Aviva PLC

     1,689,012        9,147,769   

Legal & General Group PLC

     3,407,698        8,281,520   

Prudential PLC

     1,474,878        21,973,742   

Resolution Ltd.

     804,807        3,190,969   

RSA Insurance Group PLC

     2,050,313        3,756,514   

Standard Life PLC

     1,360,593        7,280,228   
   

 

 

  
      55,869,497   

IRON & STEEL — 0.05%

  

  

Evraz PLC

     186,064        770,768   
   

 

 

  
      770,768   

LEISURE TIME — 0.36%

  

  

Carnival PLC

     105,463        3,966,971   

TUI Travel PLC

     258,244        1,243,821   
   

 

 

  
      5,210,792   

LODGING — 0.59%

  

  

InterContinental Hotels Group PLC

     157,192        4,566,989   

Whitbread PLC

     103,057        3,946,866   
   

 

 

  
      8,513,855   

MACHINERY — 0.30%

  

  

Weir Group PLC (The)

     122,706        4,365,973   
   

 

 

  
      4,365,973   

MANUFACTURING — 0.91%

  

  

IMI PLC

     184,460        3,424,414   

Invensys PLC

     471,175        2,561,204   

Melrose Industries PLC

     690,522        2,711,637   

Smiths Group PLC

     226,966        4,344,437   
   

 

 

  
      13,041,692   

MEDIA — 1.93%

  

  

British Sky Broadcasting Group PLC

     615,134        7,941,484   

ITV PLC

     2,139,736        4,034,033   

Pearson PLC

     470,774        8,253,764   

Reed Elsevier PLC

     698,542        7,517,897   
   

 

 

  
      27,747,178   
Security   Shares     Value  
   

MINING — 10.52%

  

  

Anglo American PLC

     801,198      $ 23,374,959   

Antofagasta PLC

     227,768        3,778,944   

BHP Billiton PLC

     1,217,436        38,604,879   

Eurasian Natural Resources Corp.

     149,974        770,378   

Fresnillo PLC

     103,859        2,448,348   

Glencore International PLC

     2,244,397        13,201,674   

Kazakhmys PLC

     120,300        1,130,352   

Randgold Resources Ltd.

     50,125        4,173,387   

Rio Tinto PLC

     773,128        41,556,116   

Vedanta Resources PLC

     62,155        1,109,535   

Xstrata PLC

     1,211,421        21,376,947   
   

 

 

  
      151,525,519   

OIL & GAS — 16.70%

  

  

BG Group PLC

     1,958,484        34,648,938   

BP PLC

     10,976,573        74,262,065   

Royal Dutch Shell PLC Class A

     2,150,964        70,851,735   

Royal Dutch Shell PLC Class B

     1,514,577        51,119,442   

Tullow Oil PLC

     522,904        9,636,033   
   

 

 

  
      240,518,213   

OIL & GAS SERVICES — 0.43%

  

  

AMEC PLC

     177,643        2,815,181   

Petrofac Ltd.

     149,974        3,310,076   
   

 

 

  
      6,125,257   

PACKAGING & CONTAINERS — 0.25%

  

  

Rexam PLC

     456,338        3,563,934   
   

 

 

  
      3,563,934   

PHARMACEUTICALS — 7.32%

  

  

AstraZeneca PLC

     719,394        32,710,995   

GlaxoSmithKline PLC

     2,832,664        62,605,725   

Shire PLC

     323,607        10,143,681   
   

 

 

  
      105,460,401   

REAL ESTATE INVESTMENT TRUSTS — 1.13%

  

  

British Land Co. PLC

     487,215        4,197,050   

Capital Shopping Centres Group PLC

     326,414        1,648,463   

Hammerson PLC

     412,228        3,093,667   

Land Securities Group PLC

     451,125        5,680,295   

SEGRO PLC

     427,065        1,658,906   
   

 

 

  
      16,278,381   
 

 

50    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI UNITED KINGDOM INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

RETAIL — 1.17%

  

  

Kingfisher PLC

     1,365,004      $ 5,739,464   

Marks & Spencer Group PLC

     926,310        5,220,822   

Next PLC

     93,433        5,955,302   
   

 

 

  
      16,915,588   

SEMICONDUCTORS — 0.80%

  

  

ARM Holdings PLC

     794,782        11,521,500   
   

 

 

  
      11,521,500   

SOFTWARE — 0.25%

  

  

Sage Group PLC (The)

     710,572        3,667,285   
   

 

 

  
      3,667,285   

TELECOMMUNICATIONS — 6.40%

  

  

BT Group PLC

     4,537,716        18,439,252   

Inmarsat PLC

     259,046        2,561,822   

Vodafone Group PLC

     28,345,888        71,232,284   
   

 

 

  
      92,233,358   

VENTURE CAPITAL — 0.19%

  

  

3i Group PLC

     561,400        2,730,376   
   

 

 

  
      2,730,376   

WATER — 0.54%

  

  

Severn Trent PLC

     137,543        3,380,204   

United Utilities Group PLC

     393,381        4,400,870   
   

 

 

  
      7,781,074   
   

 

 

  

TOTAL COMMON STOCKS

  

  

(Cost: $1,434,502,150)

  

     1,432,151,666   

SHORT-TERM INVESTMENTS — 0.00%

  

MONEY MARKET FUNDS — 0.00%

  

  

BlackRock Cash Funds: Treasury,
SL Agency Shares

    

0.04%b,c

     71,095        71,095   
   

 

 

  
      71,095   
   

 

 

  

TOTAL SHORT-TERM INVESTMENTS

  

  

(Cost: $71,095)

  

     71,095   
   

 

 

  

TOTAL INVESTMENTS
IN SECURITIES — 99.42%

   

  

(Cost: $1,434,573,245)

  

     1,432,222,761   

Other Assets, Less Liabilities — 0.58%

  

     8,314,097   
   

 

 

  

NET ASSETS — 100.00%

  

   $ 1,440,536,858   
   

 

 

  
a 

Non-income earning security.

b 

Affiliated issuer. See Note 2.

c 

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

Financial futures contracts purchased as of February 28, 2013 were as follows:

 

Number of
Contracts		      Issue
(Expiration)		   Exchange   Notional
Value		     Net
Unrealized
Appreciation
(Depreciation)		  
  80       FTSE 100 Index (Mar. 2013)  

NYSE

Liffe London

     $7,721,511        $448,061   
                              

See notes to financial statements.

 

 

SCHEDULES OF INVESTMENTS

      51   

Table of Contents

Statements of Assets and Liabilities (Unaudited)

iSHARES®, INC.

February 28, 2013

 

      iShares MSCI
Austria Capped
Investable Market
Index Fund		     iShares MSCI
Belgium Capped
Investable Market
Index Fund		     iShares MSCI
Emerging Markets
Eastern Europe
Index Fund		  

ASSETS

       

Investments, at cost:

       

Unaffiliated

    $ 138,915,015      $ 61,357,839      $ 30,181,406   

Affiliated (Note 2)

      2,045,243        488,451        3,799   
  

 

 

    

 

 

    

 

 

  

Total cost of investments

    $ 140,960,258      $ 61,846,290      $ 30,185,205   
  

 

 

    

 

 

    

 

 

  

Investments in securities, at fair value (including securities on loana) (Note 1):

       

Unaffiliated

    $ 107,984,037      $ 59,923,571      $ 24,693,120   

Affiliated (Note 2)

      2,045,243        488,451        3,799   
  

 

 

    

 

 

    

 

 

  

Total fair value of investments

      110,029,280        60,412,022        24,696,919   

Foreign currencies, at valueb

      152,223        27,731        17,927   

Receivables:

       

Investment securities sold

      1,557,085        1,072,466        177,719   

Due from custodian (Note 4)

      —        —        217,936   

Dividends and interest

      597,390        43,772        1,501   
  

 

 

    

 

 

    

 

 

  

Total Assets

      112,335,978        61,555,991        25,112,002   
  

 

 

    

 

 

    

 

 

  

LIABILITIES

       

Payables:

       

Investment securities purchased

      1,556,983        1,027,064        373,548   

Collateral for securities on loan (Note 5)

      2,044,849        471,666        —   

Capital shares redeemed

      22,943        2,011        —   

Securities related to in-kind transactions (Note 4)

      —        —        11,115   

Investment advisory fees (Note 2)

      46,904        23,511        12,701   
  

 

 

    

 

 

    

 

 

  

Total Liabilities

      3,671,679        1,524,252        397,364   
  

 

 

    

 

 

    

 

 

  

NET ASSETS

    $ 108,664,299      $ 60,031,739      $ 24,714,638   
  

 

 

    

 

 

    

 

 

  

Net assets consist of:

       

Paid-in capital

    $ 212,196,942      $ 112,298,344      $ 32,820,279   

Distributions in excess of net investment income

      (350,273 )      (38,235 )      (30,497 ) 

Accumulated net realized loss

      (72,219,049 )      (50,792,656 )      (2,586,651 ) 

Net unrealized depreciation on investments and translation of assets and liabilities in foreign currencies

      (30,963,321 )      (1,435,714 )      (5,488,493 ) 
  

 

 

    

 

 

    

 

 

  

NET ASSETS

    $ 108,664,299      $ 60,031,739      $ 24,714,638   
  

 

 

    

 

 

    

 

 

  

Shares outstandingc

      6,000,000        4,200,000        950,000   
  

 

 

    

 

 

    

 

 

  

Net asset value per share

    $ 18.11      $ 14.29      $ 26.02   
  

 

 

    

 

 

    

 

 

  

 

a 

Securities on loan with values of $1,945,363, $440,204 and $  —, respectively. See Note 5.

b 

Cost of foreign currencies: $152,373, $28,583 and $18,285, respectively.

c 

$0.001 par value, number of shares authorized: 100 million, 136.2 million and 200 million, respectively.

See notes to financial statements.

 

52    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Statements of Assets and Liabilities (Unaudited) (Continued)

iSHARES®, INC.

February 28, 2013

 

      iShares MSCI
EMU
Index Fund		         
iShares MSCI
France
Index Fund		     iShares MSCI
Germany
Index Fund		  

ASSETS

       

Investments, at cost:

       

Unaffiliated

    $ 2,593,888,644      $ 517,768,838      $ 3,688,335,039   

Affiliated (Note 2)

      17,321,174        814,865        8,180,312   
  

 

 

    

 

 

    

 

 

  

Total cost of investments

    $ 2,611,209,818      $ 518,583,703      $ 3,696,515,351   
  

 

 

    

 

 

    

 

 

  

Investments in securities, at fair value (including securities on loana) (Note 1):

       

Unaffiliated

    $ 2,375,502,410      $ 466,088,656      $ 3,551,761,748   

Affiliated (Note 2)

      17,321,174        814,865        8,180,312   
  

 

 

    

 

 

    

 

 

  

Total fair value of investments

      2,392,823,584        466,903,521        3,559,942,060   

Foreign currencies, at valueb

      3,744,631        397,815        6,277,590   

Foreign currency pledged to broker, at valueb

      —        —        1,386,606   

Receivables:

       

Investment securities sold

      10,569,208        1,866,406        5,732,244   

Dividends and interest

      1,034,835        1,584        8,781,609   

Futures variation margin

      —        —        234,506   
  

 

 

    

 

 

    

 

 

  

Total Assets

      2,408,172,258        469,169,326        3,582,354,615   
  

 

 

    

 

 

    

 

 

  

LIABILITIES

       

Payables:

       

Investment securities purchased

      10,801,484        1,935,779        7,751,398   

Collateral for securities on loan (Note 5)

      17,151,427        807,035        8,000,000   

Capital shares redeemed

      198,824        —        403,549   

Investment advisory fees (Note 2)

      959,820        182,648        1,482,170   
  

 

 

    

 

 

    

 

 

  

Total Liabilities

      29,111,555        2,925,462        17,637,117   
  

 

 

    

 

 

    

 

 

  

NET ASSETS

    $ 2,379,060,703      $ 466,243,864      $ 3,564,717,498   
  

 

 

    

 

 

    

 

 

  

Net assets consist of:

       

Paid-in capital

    $ 2,789,513,164      $ 553,831,918      $ 3,786,593,636   

Undistributed (distributions in excess of) net investment income

      1,411,293        (377,966 )      2,955,227   

Accumulated net realized loss

      (193,373,977 )      (35,520,853 )      (87,900,074 ) 

Net unrealized depreciation on investments and translation of assets and liabilities in foreign currencies

      (218,489,777 )      (51,689,235 )      (136,931,291 ) 
  

 

 

    

 

 

    

 

 

  

NET ASSETS

    $ 2,379,060,703      $ 466,243,864      $ 3,564,717,498   
  

 

 

    

 

 

    

 

 

  

Shares outstandingc

      71,600,000        19,800,000        144,300,000   
  

 

 

    

 

 

    

 

 

  

Net asset value per share

    $ 33.23      $ 23.55      $ 24.70   
  

 

 

    

 

 

    

 

 

  

 

a 

Securities on loan with values of $16,262,334, $767,860 and $7,445,912, respectively. See Note 5.

b 

Cost of foreign currencies including currency at broker, if any: $3,833,055, $406,869 and $7,821,144, respectively.

c 

$0.001 par value, number of shares authorized: 1 billion, 340.2 million and 382.2 million, respectively.

See notes to financial statements.

 

FINANCIAL STATEMENTS

      53   

Table of Contents

Statements of Assets and Liabilities (Unaudited) (Continued)

iSHARES®, INC.

February 28, 2013

 

      iShares MSCI
Italy Capped
Index Fund		     iShares MSCI
Netherlands
Investable Market
Index Fund		     iShares MSCI
Spain Capped
Index Fund		  

ASSETS

       

Investments, at cost:

       

Unaffiliated

    $ 574,706,251      $ 170,546,387      $ 308,470,784   

Affiliated (Note 2)

      34,027,150        637,567        4,740,624   
  

 

 

    

 

 

    

 

 

  

Total cost of investments

    $ 608,733,401      $ 171,183,954      $ 313,211,408   
  

 

 

    

 

 

    

 

 

  

Investments in securities, at fair value (including securities on loana) (Note 1):

       

Unaffiliated

    $ 551,218,245      $ 148,991,686      $ 284,126,866   

Affiliated (Note 2)

      34,027,150        637,567        4,740,624   
  

 

 

    

 

 

    

 

 

  

Total fair value of investments

      585,245,395        149,629,253        288,867,490   

Foreign currencies, at valueb

      396,127        131,639        304,366   

Receivables:

       

Investment securities sold

      21,708,236        1,791,972        6,412,520   

Dividends and interest

      26,433        238,552        29,817   

Capital shares sold

      3,545        —        —   
  

 

 

    

 

 

    

 

 

  

Total Assets

      607,379,736        151,791,416        295,614,193   
  

 

 

    

 

 

    

 

 

  

LIABILITIES

       

Payables:

       

Investment securities purchased

      21,572,405        1,771,335        6,542,939   

Collateral for securities on loan (Note 5)

      33,889,665        633,447        4,683,207   

Capital shares redeemed

      —        16,354        —   

Investment advisory fees (Note 2)

      222,865        64,293        108,071   
  

 

 

    

 

 

    

 

 

  

Total Liabilities

      55,684,935        2,485,429        11,334,217   
  

 

 

    

 

 

    

 

 

  

NET ASSETS

    $ 551,694,801      $ 149,305,987      $ 284,279,976   
  

 

 

    

 

 

    

 

 

  

Net assets consist of:

       

Paid-in capital

    $ 679,647,987      $ 209,296,027      $ 402,984,096   

Undistributed (distributions in excess of) net investment income

      (574,082 )      70,069        2,505,315   

Accumulated net realized loss

      (103,883,259 )      (38,493,249 )      (96,858,740 ) 

Net unrealized depreciation on investments and translation of assets and liabilities in foreign currencies

      (23,495,845 )      (21,566,860 )      (24,350,695 ) 
  

 

 

    

 

 

    

 

 

  

NET ASSETS

    $ 551,694,801      $ 149,305,987      $ 284,279,976   
  

 

 

    

 

 

    

 

 

  

Shares outstandingc

      44,100,000        7,350,000        9,450,000   
  

 

 

    

 

 

    

 

 

  

Net asset value per share

    $ 12.51      $ 20.31      $ 30.08   
  

 

 

    

 

 

    

 

 

  

 

a 

Securities on loan with values of $31,879,020, $600,076 and $4,383,369, respectively. See Note 5.

b 

Cost of foreign currencies: $404,247, $135,294 and $310,756, respectively.

c 

$0.001 par value, number of shares authorized: 63.6 million, 255 million and 127.8 million, respectively.

See notes to financial statements.

 

54    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Statements of Assets and Liabilities (Unaudited) (Continued)

iSHARES®, INC.

February 28, 2013

 

      iShares MSCI
Sweden
Index Fund		    

iShares MSCI
Switzerland Capped
Index Fund

     iShares MSCI
United Kingdom
Index Fund		  

ASSETS

       

Investments, at cost:

       

Unaffiliated

    $ 380,773,698      $ 632,273,606      $ 1,434,502,150   

Affiliated (Note 2)

      12,420        3,516        71,095   
  

 

 

    

 

 

    

 

 

  

Total cost of investments

    $ 380,786,118      $ 632,277,122      $ 1,434,573,245   
  

 

 

    

 

 

    

 

 

  

Investments in securities, at fair value (Note 1):

       

Unaffiliated

    $ 392,888,425      $ 748,230,387      $ 1,432,151,666   

Affiliated (Note 2)

      12,420        3,516        71,095   
  

 

 

    

 

 

    

 

 

  

Total fair value of investments

      392,900,845        748,233,903        1,432,222,761   

Foreign currencies, at valuea

      133,514        5,532        1,816,908   

Foreign currency pledged to broker, at valuea

      —        —        115,130   

Receivables:

       

Investment securities sold

      1,966,656        4,454,929        1,340,616   

Dividends and interest

      —        7,822,436        6,520,854   

Futures variation margin

      —        —        448,061   
  

 

 

    

 

 

    

 

 

  

Total Assets

      395,001,015        760,516,800        1,442,464,330   
  

 

 

    

 

 

    

 

 

  

LIABILITIES

       

Payables:

       

Investment securities purchased

      1,893,494        3,514,719        1,362,114   

Investment advisory fees (Note 2)

      153,999        294,232        565,358   
  

 

 

    

 

 

    

 

 

  

Total Liabilities

      2,047,493        3,808,951        1,927,472   
  

 

 

    

 

 

    

 

 

  

NET ASSETS

    $ 392,953,522      $ 756,707,849      $ 1,440,536,858   
  

 

 

    

 

 

    

 

 

  

Net assets consist of:

       

Paid-in capital

    $ 420,786,976      $ 678,644,730      $ 1,608,102,724   

Undistributed (distributions in excess of) net investment income

      (749,444 )      1,250,115        6,059,879   

Accumulated net realized loss

      (39,203,584 )      (39,253,448 )      (171,612,075 ) 

Net unrealized appreciation (depreciation) on investments and translation of assets and liabilities in foreign currencies

      12,119,574        116,066,452        (2,013,670 ) 
  

 

 

    

 

 

    

 

 

  

NET ASSETS

    $ 392,953,522      $ 756,707,849      $ 1,440,536,858   
  

 

 

    

 

 

    

 

 

  

Shares outstandingb

      12,075,000        26,125,000        80,200,000   
  

 

 

    

 

 

    

 

 

  

Net asset value per share

    $ 32.54      $ 28.96      $ 17.96   
  

 

 

    

 

 

    

 

 

  

 

a 

Cost of foreign currencies including currency at broker, if any: $128,667, $5,598 and $1,980,455, respectively.

b 

$0.001 par value, number of shares authorized: 63.6 million, 318.625 million and 934.2 million, respectively.

See notes to financial statements.

 

FINANCIAL STATEMENTS

      55   

Table of Contents

Statements of Operations (Unaudited)

iSHARES®, INC.

Six months ended February 28, 2013

 

      iShares MSCI
Austria Capped
Investable Market
Index Fund		     iShares MSCI
Belgium Capped
Investable Market
Index Fund		     iShares MSCI
Emerging Markets
Eastern Europe
Index Fund		  

NET INVESTMENT INCOME

       

Dividends — unaffiliateda

    $ 342,721      $ 162,092      $ 72,950   

Interest — affiliated (Note 2)

      25        10        12   

Securities lending income — affiliated (Note 2)

      5,072        2,886        —   
  

 

 

    

 

 

    

 

 

  

Total investment income

      347,818        164,988        72,962   
  

 

 

    

 

 

    

 

 

  

EXPENSES

       

Investment advisory fees (Note 2)

      230,171        113,491        67,492   
  

 

 

    

 

 

    

 

 

  

Total expenses

      230,171        113,491        67,492   
  

 

 

    

 

 

    

 

 

  

Net investment income

      117,647        51,497        5,470   
  

 

 

    

 

 

    

 

 

  

NET REALIZED AND UNREALIZED GAIN (LOSS)

       

Net realized gain (loss) from:

       

Investments — unaffiliated

      (11,733,692 )      (7,317,228 )      (331,493 ) 

In-kind redemptions — unaffiliated

      4,675,664        154,799        (954,687 ) 

Foreign currency transactions

      6,519        4,415        6,158   
  

 

 

    

 

 

    

 

 

  

Net realized loss

      (7,051,509 )      (7,158,014 )      (1,280,022 ) 
  

 

 

    

 

 

    

 

 

  

Net change in unrealized appreciation/depreciation on:

       

Investments

      24,399,502        15,329,032        2,392,512   

Translation of assets and liabilities in foreign currencies

      20,302        418        (462 ) 
  

 

 

    

 

 

    

 

 

  

Net change in unrealized appreciation/depreciation

      24,419,804        15,329,450        2,392,050   
  

 

 

    

 

 

    

 

 

  

Net realized and unrealized gain

      17,368,295        8,171,436        1,112,028   
  

 

 

    

 

 

    

 

 

  

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

    $ 17,485,942      $ 8,222,933      $ 1,117,498   
  

 

 

    

 

 

    

 

 

  

 

a 

Net of foreign withholding tax of $18,083, $28,605 and $12,141, respectively.

See notes to financial statements.

 

56    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Statements of Operations (Unaudited) (Continued)

iSHARES®, INC.

Six months ended February 28, 2013

 

      iShares MSCI
EMU
Index Fund		    

iShares MSCI
France
Index Fund

     iShares MSCI
Germany
Index Fund		  

NET INVESTMENT INCOME

       

Dividends — unaffiliateda

    $ 12,756,775      $ 2,985,422      $ 12,313,864   

Interest — affiliated (Note 2)

      499        69        417   

Securities lending income — affiliated (Note 2)

      197,729        7,638        80,211   
  

 

 

    

 

 

    

 

 

  

Total investment income

      12,955,003        2,993,129        12,394,492   
  

 

 

    

 

 

    

 

 

  

EXPENSES

       

Investment advisory fees (Note 2)

      4,622,868        1,122,425        9,439,265   
  

 

 

    

 

 

    

 

 

  

Total expenses

      4,622,868        1,122,425        9,439,265   
  

 

 

    

 

 

    

 

 

  

Net investment income

      8,332,135        1,870,704        2,955,227   
  

 

 

    

 

 

    

 

 

  

NET REALIZED AND UNREALIZED GAIN (LOSS)

       

Net realized gain (loss) from:

       

Investments — unaffiliated

      (25,144,650 )      (8,318,344 )      (15,035,662 ) 

In-kind redemptions — unaffiliated

      21,139,053        —        115,501,762   

Futures contracts

      —        —        3,336,057   

Foreign currency transactions

      153,475        41,359        441,610   
  

 

 

    

 

 

    

 

 

  

Net realized gain (loss)

      (3,852,122 )      (8,276,985 )      104,243,767   
  

 

 

    

 

 

    

 

 

  

Net change in unrealized appreciation/depreciation on:

       

Investments

      179,908,333        63,916,311        407,734,113   

Futures contracts

      —        —        (1,397,952 ) 

Translation of assets and liabilities in foreign currencies

      (89,167 )      (21,095 )      266,838   
  

 

 

    

 

 

    

 

 

  

Net change in unrealized appreciation/depreciation

      179,819,166        63,895,216        406,602,999   
  

 

 

    

 

 

    

 

 

  

Net realized and unrealized gain

      175,967,044        55,618,231        510,846,766   
  

 

 

    

 

 

    

 

 

  

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

    $ 184,299,179      $ 57,488,935      $ 513,801,993   
  

 

 

    

 

 

    

 

 

  

 

a 

Net of foreign withholding tax of $1,594,006, $522,001 and $2,051,953, respectively.

See notes to financial statements.

 

FINANCIAL STATEMENTS

      57   

Table of Contents

Statements of Operations (Unaudited) (Continued)

iSHARES®, INC.

Six months ended February 28, 2013

 

      iShares MSCI
Italy Capped
Index Fund		     iShares MSCI
Netherlands
Investable Market
Index Fund		     iShares MSCI
Spain Capped
Index Fund		  

NET INVESTMENT INCOME

       

Dividends — unaffiliateda

    $ 2,096,018      $ 490,237      $ 5,504,856   

Interest — affiliated (Note 2)

      86        24        142   

Securities lending income — affiliated (Note 2)

      35,691        3,084        214,252   
  

 

 

    

 

 

    

 

 

  

Total investment income

      2,131,795        493,345        5,719,250   
  

 

 

    

 

 

    

 

 

  

EXPENSES

       

Investment advisory fees (Note 2)

      903,928        318,696        590,581   
  

 

 

    

 

 

    

 

 

  

Total expenses

      903,928        318,696        590,581   
  

 

 

    

 

 

    

 

 

  

Net investment income

      1,227,867        174,649        5,128,669   
  

 

 

    

 

 

    

 

 

  

NET REALIZED AND UNREALIZED GAIN (LOSS)

       

Net realized gain (loss) from:

       

Investments — unaffiliated

      (52,437,263 )      (892,079 )      (50,881,051 ) 

In-kind redemptions — unaffiliated

      16,410,967        2,762,062        14,010,640   

Foreign currency transactions

      19,237        25,458        93,993   
  

 

 

    

 

 

    

 

 

  

Net realized gain (loss)

      (36,007,059 )      1,895,441        (36,776,418 ) 
  

 

 

    

 

 

    

 

 

  

Net change in unrealized appreciation/depreciation on:

       

Investments

      28,974,546        9,463,525        62,983,693   

Translation of assets and liabilities in foreign currencies

      (9,650 )      (15,580 )      (9,490 ) 
  

 

 

    

 

 

    

 

 

  

Net change in unrealized appreciation/depreciation

      28,964,896        9,447,945        62,974,203   
  

 

 

    

 

 

    

 

 

  

Net realized and unrealized gain (loss)

      (7,042,163 )      11,343,386        26,197,785   
  

 

 

    

 

 

    

 

 

  

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

    $ (5,814,296 )    $ 11,518,035      $ 31,326,454   
  

 

 

    

 

 

    

 

 

  

 

a 

Net of foreign withholding tax of $353,180, $85,544 and $309,394, respectively.

See notes to financial statements.

 

58    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Statements of Operations (Unaudited) (Continued)

iSHARES®, INC.

Six months ended February 28, 2013

 

      iShares MSCI
Sweden
Index Fund		         
iShares MSCI
Switzerland Capped
Index Fund		     iShares MSCI
United Kingdom
Index Fund		  

NET INVESTMENT INCOME

       

Dividends — unaffiliateda

    $ 238,077      $ 3,047,782      $ 20,379,724   

Interest — unaffiliated

      —        —        2,736   

Interest — affiliated (Note 2)

      31        84        469   

Securities lending income — affiliated (Note 2)

      728        —        69,942   
  

 

 

    

 

 

    

 

 

  

Total investment income

      238,836        3,047,866        20,452,871   
  

 

 

    

 

 

    

 

 

  

EXPENSES

       

Investment advisory fees (Note 2)

      944,457        1,707,897        3,630,814   
  

 

 

    

 

 

    

 

 

  

Total expenses

      944,457        1,707,897        3,630,814   
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      (705,621 )      1,339,969        16,822,057   
  

 

 

    

 

 

    

 

 

  

NET REALIZED AND UNREALIZED GAIN (LOSS)

       

Net realized gain (loss) from:

       

Investments — unaffiliated

      (4,080,863 )      (2,242,884 )      (16,566,495 ) 

In-kind redemptions — unaffiliated

      6,220,543        15,341,109        —   

Futures contracts

      —        —        616,847   

Foreign currency transactions

      8,503        17,254        230,679   
  

 

 

    

 

 

    

 

 

  

Net realized gain (loss)

      2,148,183        13,115,479        (15,718,969 ) 
  

 

 

    

 

 

    

 

 

  

Net change in unrealized appreciation/depreciation on:

       

Investments

      63,212,551        115,576,762        103,083,808   

Futures contracts

      —        —        415,039   

Translation of assets and liabilities in foreign currencies

      632        96,144        (255,423 ) 
  

 

 

    

 

 

    

 

 

  

Net change in unrealized appreciation/depreciation

      63,213,183        115,672,906        103,243,424   
  

 

 

    

 

 

    

 

 

  

Net realized and unrealized gain

      65,361,366        128,788,385        87,524,455   
  

 

 

    

 

 

    

 

 

  

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

    $ 64,655,745      $ 130,128,354      $ 104,346,512   
  

 

 

    

 

 

    

 

 

  

 

a 

Net of foreign withholding tax of $42,014, $687,663 and $307,254, respectively.

See notes to financial statements.

 

FINANCIAL STATEMENTS

      59   

Table of Contents

Statements of Changes in Net Assets

iSHARES®, INC.

 

     iShares MSCI
Austria Capped
Investable Market
Index Fund		     iShares MSCI
Belgium Capped
Investable Market
Index Fund		  
      Six months
ended
February 28, 2013
(Unaudited)		    

Year ended

August 31, 2012

     Six months
ended
February 28, 2013
(Unaudited)		    

Year ended

August 31, 2012

  

INCREASE (DECREASE) IN NET ASSETS

         

OPERATIONS:

         

Net investment income

    $ 117,647      $ 1,549,161      $ 51,497      $ 841,677   

Net realized loss

      (7,051,509 )      (40,973,628 )      (7,158,014 )      (3,945,237 ) 

Net change in unrealized appreciation/depreciation

      24,419,804        13,231,220        15,329,450        3,067,475   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets resulting from operations

      17,485,942        (26,193,247 )      8,222,933        (36,085 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

DISTRIBUTIONS TO SHAREHOLDERS:

         

From net investment income

      (467,647 )      (1,874,586 )      (85,655 )      (1,434,412 ) 

Return of capital

      —        —        —        (27,668 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions to shareholders

      (467,647 )      (1,874,586 )      (85,655 )      (1,462,080 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

CAPITAL SHARE TRANSACTIONS:

         

Proceeds from shares sold

      63,451,695        30,854,845        27,080,230        3,661,417   

Cost of shares redeemed

      (25,562,807 )      (86,004,103 )      (571,722 )      (8,033,134 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from capital share transactions

      37,888,888        (55,149,258 )      26,508,508        (4,371,717 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

INCREASE (DECREASE) IN NET ASSETS

      54,907,183        (83,217,091 )      34,645,786        (5,869,882 ) 

NET ASSETS

         

Beginning of period

      53,757,116        136,974,207        25,385,953        31,255,835   
  

 

 

    

 

 

    

 

 

    

 

 

  

End of period

    $ 108,664,299      $ 53,757,116      $ 60,031,739      $ 25,385,953   
  

 

 

    

 

 

    

 

 

    

 

 

  

Distributions in excess of net investment income included in net assets at end of period

    $ (350,273 )    $ (273 )    $ (38,235 )    $ (4,077 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

SHARES ISSUED AND REDEEMED

         

Shares sold

      3,700,000        1,900,000        2,120,000        320,000   

Shares redeemed

      (1,400,000 )      (5,500,000 )      (40,000 )      (680,000 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in shares outstanding

      2,300,000        (3,600,000 )      2,080,000        (360,000 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

See notes to financial statements.

 

60    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Statements of Changes in Net Assets (Continued)

iSHARES®, INC.

 

     iShares MSCI
Emerging Markets
Eastern Europe
Index Fund		     iShares MSCI
EMU
Index Fund		  
      Six months
ended
February 28, 2013
(Unaudited)		    

Year ended

August 31, 2012

     Six months
ended
February 28, 2013
(Unaudited)		    

Year ended

August 31, 2012

  

INCREASE (DECREASE) IN NET ASSETS

         

OPERATIONS:

         

Net investment income

    $ 5,470      $ 988,863      $ 8,332,135      $ 24,981,379   

Net realized loss

      (1,280,022 )      (3,942,137 )      (3,852,122 )      (64,241,482 ) 

Net change in unrealized appreciation/depreciation

      2,392,050        (1,763,369 )      179,819,166        3,598,710   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets resulting from operations

      1,117,498        (4,716,643 )      184,299,179        (35,661,393 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

DISTRIBUTIONS TO SHAREHOLDERS:

         

From net investment income

      (111,949 )      (999,697 )      (7,862,714 )      (26,115,000 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions to shareholders

      (111,949 )      (999,697 )      (7,862,714 )      (26,115,000 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

CAPITAL SHARE TRANSACTIONS:

         

Proceeds from shares sold

      8,135,704        3,811,852        1,562,283,756        423,843,438   

Cost of shares redeemed

      (5,028,621 )      (9,705,031 )      (153,885,525 )      (306,073,712 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from capital share transactions

      3,107,083        (5,893,179 )      1,408,398,231        117,769,726   
  

 

 

    

 

 

    

 

 

    

 

 

  

INCREASE (DECREASE) IN NET ASSETS

      4,112,632        (11,609,519 )      1,584,834,696        55,993,333   

NET ASSETS

         

Beginning of period

      20,602,006        32,211,525        794,226,007        738,232,674   
  

 

 

    

 

 

    

 

 

    

 

 

  

End of period

    $ 24,714,638      $ 20,602,006      $ 2,379,060,703      $ 794,226,007   
  

 

 

    

 

 

    

 

 

    

 

 

  

Undistributed (distributions in excess of) net investment income included in net assets at end of period

    $ (30,497 )    $ 75,982      $ 1,411,293      $ 941,872   
  

 

 

    

 

 

    

 

 

    

 

 

  

SHARES ISSUED AND REDEEMED

         

Shares sold

      300,000        150,000        49,200,000        14,700,000   

Shares redeemed

      (200,000 )      (400,000 )      (4,900,000 )      (10,800,000 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in shares outstanding

      100,000        (250,000 )      44,300,000        3,900,000   
  

 

 

    

 

 

    

 

 

    

 

 

  

See notes to financial statements.

 

FINANCIAL STATEMENTS

      61   

Table of Contents

Statements of Changes in Net Assets (Continued)

iSHARES®, INC.

 

     iShares MSCI
France
Index Fund		     iShares MSCI
Germany
Index Fund		  
      Six months
ended
February 28, 2013
(Unaudited)		    

Year ended

August 31, 2012

     Six months
ended
February 28, 2013
(Unaudited)		    

Year ended

August 31, 2012

  

INCREASE (DECREASE) IN NET ASSETS

         

OPERATIONS:

         

Net investment income

    $ 1,870,704      $ 8,469,659      $ 2,955,227      $ 72,991,703   

Net realized gain (loss)

      (8,276,985 )      (46,840,141 )      104,243,767        (23,203,349 ) 

Net change in unrealized appreciation/depreciation

      63,895,216        21,070,720        406,602,999        56,076,160   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets resulting from operations

      57,488,935        (17,299,762 )      513,801,993        105,864,514   
  

 

 

    

 

 

    

 

 

    

 

 

  

DISTRIBUTIONS TO SHAREHOLDERS:

         

From net investment income

      (2,200,542 )      (8,849,764 )      —        (74,836,476 ) 

Return of capital

      —        (2,754 )      —        —   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions to shareholders

      (2,200,542 )      (8,852,518 )      —        (74,836,476 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

CAPITAL SHARE TRANSACTIONS:

         

Proceeds from shares sold

      9,329,969        407,882,087        931,262,856        1,528,900,109   

Cost of shares redeemed

      —        (337,241,789 )      (677,376,419 )      (1,531,070,466 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from capital share transactions

      9,329,969        70,640,298        253,886,437        (2,170,357 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

INCREASE IN NET ASSETS

      64,618,362        44,488,018        767,688,430        28,857,681   

NET ASSETS

         

Beginning of period

      401,625,502        357,137,484        2,797,029,068        2,768,171,387   
  

 

 

    

 

 

    

 

 

    

 

 

  

End of period

    $ 466,243,864      $ 401,625,502      $ 3,564,717,498      $ 2,797,029,068   
  

 

 

    

 

 

    

 

 

    

 

 

  

Undistributed (distributions in excess of) net investment income included in net assets at end of period

    $ (377,966 )    $ (48,128 )    $ 2,955,227      $ —   
  

 

 

    

 

 

    

 

 

    

 

 

  

SHARES ISSUED AND REDEEMED

         

Shares sold

      400,000        21,000,000        40,800,000        72,900,000   

Shares redeemed

      —        (17,400,000 )      (27,600,000 )      (73,500,000 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in shares outstanding

      400,000        3,600,000        13,200,000        (600,000 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

See notes to financial statements.

 

62    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Statements of Changes in Net Assets (Continued)

iSHARES®, INC.

 

     iShares MSCI
Italy Capped
Index Fund		     iShares MSCI
Netherlands
Investable Market
Index Fund		  
      Six months
ended
February 28, 2013
(Unaudited)		    

Year ended

August 31, 2012

     Six months
ended
February 28, 2013
(Unaudited)		    

Year ended

August 31, 2012

  

INCREASE (DECREASE) IN NET ASSETS

         

OPERATIONS:

         

Net investment income

    $ 1,227,867      $ 4,465,523      $ 174,649      $ 1,568,827   

Net realized gain (loss)

      (36,007,059 )      (29,842,080 )      1,895,441        (20,489,624 ) 

Net change in unrealized appreciation/depreciation

      28,964,896        14,197,991        9,447,945        16,001,368   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets resulting from operations

      (5,814,296 )      (11,178,566 )      11,518,035        (2,919,429 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

DISTRIBUTIONS TO SHAREHOLDERS:

         

From net investment income

      (1,740,109 )      (4,578,996 )      (263,792 )      (1,910,545 ) 

Return of capital

      —        (1,125 )      —        —   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions to shareholders

      (1,740,109 )      (4,580,121 )      (263,792 )      (1,910,545 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

CAPITAL SHARE TRANSACTIONS:

         

Proceeds from shares sold

      457,253,170        186,146,005        74,025,936        38,973,623   

Cost of shares redeemed

      (94,215,716 )      (118,787,548 )      (14,370,733 )      (77,487,514 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from capital share transactions

      363,037,454        67,358,457        59,655,203        (38,513,891 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

INCREASE (DECREASE) IN NET ASSETS

      355,483,049        51,599,770        70,909,446        (43,343,865 ) 

NET ASSETS

         

Beginning of period

      196,211,752        144,611,982        78,396,541        121,740,406   
  

 

 

    

 

 

    

 

 

    

 

 

  

End of period

    $ 551,694,801      $ 196,211,752      $ 149,305,987      $ 78,396,541   
  

 

 

    

 

 

    

 

 

    

 

 

  

Undistributed (distributions in excess of) net investment income included in net assets at end of period

    $ (574,082 )    $ (61,840 )    $ 70,069      $ 159,212   
  

 

 

    

 

 

    

 

 

    

 

 

  

SHARES ISSUED AND REDEEMED

         

Shares sold

      34,650,000        15,750,000        3,750,000        2,200,000   

Shares redeemed

      (7,200,000 )      (9,750,000 )      (700,000 )      (4,500,000 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in shares outstanding

      27,450,000        6,000,000        3,050,000        (2,300,000 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

See notes to financial statements.

 

FINANCIAL STATEMENTS

      63   

Table of Contents

Statements of Changes in Net Assets (Continued)

iSHARES®, INC.

 

     iShares MSCI
Spain Capped
Index Fund		     iShares MSCI
Sweden
Index Fund		  
      Six months
ended
February 28, 2013
(Unaudited)		    

Year ended

August 31, 2012

     Six months
ended
February 28, 2013
(Unaudited)		    

Year ended

August 31, 2012

  

INCREASE (DECREASE) IN NET ASSETS

         

OPERATIONS:

         

Net investment income (loss)

    $ 5,128,669      $ 10,200,322      $ (705,621 )    $ 9,806,343   

Net realized gain (loss)

      (36,776,418 )      (55,320,695 )      2,148,183        (18,580,006 ) 

Net change in unrealized appreciation/depreciation

      62,974,203        23,658,799        63,213,183        18,534,408   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets resulting from operations

      31,326,454        (21,461,574 )      64,655,745        9,760,745   
  

 

 

    

 

 

    

 

 

    

 

 

  

DISTRIBUTIONS TO SHAREHOLDERS:

         

From net investment income

      (5,405,831 )      (11,503,970 )      —        (9,531,005 ) 

Return of capital

      —        —        —        (613,518 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions to shareholders

      (5,405,831 )      (11,503,970 )      —        (10,144,523 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

CAPITAL SHARE TRANSACTIONS:

         

Proceeds from shares sold

      138,832,577        226,627,780        13,906,336        141,186,783   

Cost of shares redeemed

      (75,566,243 )      (178,928,842 )      (56,440,942 )      (99,857,806 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from capital share transactions

      63,266,334        47,698,938        (42,534,606 )      41,328,977   
  

 

 

    

 

 

    

 

 

    

 

 

  

INCREASE IN NET ASSETS

      89,186,957        14,733,394        22,121,139        40,945,199   

NET ASSETS

         

Beginning of period

      195,093,019        180,359,625        370,832,383        329,887,184   
  

 

 

    

 

 

    

 

 

    

 

 

  

End of period

    $ 284,279,976      $ 195,093,019      $ 392,953,522      $ 370,832,383   
  

 

 

    

 

 

    

 

 

    

 

 

  

Undistributed (distributions in excess of) net investment income included in net assets at end of period

    $ 2,505,315      $ 2,782,477      $ (749,444 )    $ (43,823 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

SHARES ISSUED AND REDEEMED

         

Shares sold

      4,650,000        8,550,000        450,000        5,250,000   

Shares redeemed

      (2,625,000 )      (6,150,000 )      (1,950,000 )      (3,975,000 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in shares outstanding

      2,025,000        2,400,000        (1,500,000 )      1,275,000   
  

 

 

    

 

 

    

 

 

    

 

 

  

See notes to financial statements.

 

64    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Statements of Changes in Net Assets (Continued)

iSHARES®, INC.

 

     iShares MSCI
Switzerland Capped
Index Fund		     iShares MSCI
United Kingdom
Index Fund		  
      Six months
ended
February 28, 2013
(Unaudited)		    

Year ended

August 31, 2012

     Six months
ended
February 28, 2013
(Unaudited)		    

Year ended

August 31, 2012

  

INCREASE (DECREASE) IN NET ASSETS

         

OPERATIONS:

         

Net investment income

    $ 1,339,969      $ 14,072,490      $ 16,822,057      $ 51,696,487   

Net realized gain (loss)

      13,115,479        (923,487 )      (15,718,969 )      (13,950,054 ) 

Net change in unrealized appreciation/depreciation

      115,672,906        (15,616,566 )      103,243,424        52,432,507   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets resulting from operations

      130,128,354        (2,467,563 )      104,346,512        90,178,940   
  

 

 

    

 

 

    

 

 

    

 

 

  

DISTRIBUTIONS TO SHAREHOLDERS:

         

From net investment income

      —        (14,947,529 )      (20,303,753 )      (49,722,633 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions to shareholders

      —        (14,947,529 )      (20,303,753 )      (49,722,633 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

CAPITAL SHARE TRANSACTIONS:

         

Proceeds from shares sold

      126,589,389        90,416,035        —        243,232,911   

Cost of shares redeemed

      (54,579,608 )      (42,590,064 )      —        (126,527,912 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase in net assets from capital share transactions

      72,009,781        47,825,971        —        116,704,999   
  

 

 

    

 

 

    

 

 

    

 

 

  

INCREASE IN NET ASSETS

      202,138,135        30,410,879        84,042,759        157,161,306   

NET ASSETS

         

Beginning of period

      554,569,714        524,158,835        1,356,494,099        1,199,332,793   
  

 

 

    

 

 

    

 

 

    

 

 

  

End of period

    $ 756,707,849      $ 554,569,714      $ 1,440,536,858      $ 1,356,494,099   
  

 

 

    

 

 

    

 

 

    

 

 

  

Undistributed (distributions in excess of) net investment income included in net assets at end of period

    $ 1,250,115      $ (89,854 )    $ 6,059,879      $ 9,541,575   
  

 

 

    

 

 

    

 

 

    

 

 

  

SHARES ISSUED AND REDEEMED

         

Shares sold

      4,875,000        3,875,000        —        14,800,000   

Shares redeemed

      (2,000,000 )      (1,875,000 )      —        (7,600,000 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase in shares outstanding

      2,875,000        2,000,000        —        7,200,000   
  

 

 

    

 

 

    

 

 

    

 

 

  

See notes to financial statements.

 

FINANCIAL STATEMENTS

      65   

Table of Contents

Financial Highlights

iSHARES®, INC.

(For a share outstanding throughout each period)

 

     iShares MSCI Austria Capped Investable Market Index Fund  
      Six months
ended
Feb. 28, 2013
(Unaudited)		    

Year ended

Aug. 31, 2012

    

Year ended

Aug. 31, 2011

     Year ended
Aug. 31, 2010		    

Year ended

Aug. 31, 2009

    

Year ended

Aug. 31, 2008

  

Net asset value, beginning of period

    $ 14.53      $ 18.76      $ 17.27      $ 20.21      $ 29.78      $ 37.28   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income from investment operations:

             

Net investment incomea

      0.02        0.35        0.42        0.43        0.51        0.56   

Net realized and unrealized gain (loss)b

      3.63        (4.09 )      1.53        (2.62 )      (9.36 )      (6.98 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      3.65        (3.74 )      1.95        (2.19 )      (8.85 )      (6.42 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Less distributions from:

             

Net investment income

      (0.07 )      (0.49 )      (0.46 )      (0.75 )      (0.72 )      (1.08 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (0.07 )      (0.49 )      (0.46 )      (0.75 )      (0.72 )      (1.08 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of period

    $ 18.11      $ 14.53      $ 18.76      $ 17.27      $ 20.21      $ 29.78   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return

      25.13 %c      (19.81 )%      10.92 %      (11.07 )%      (28.52 )%      (17.64 )% 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios/Supplemental data:

             

Net assets, end of period (000s)

    $ 108,664      $ 53,757      $ 136,974      $ 110,520      $ 159,666      $ 193,602   

Ratio of expenses to average net assetsd

      0.51 %      0.52 %      0.52 %      0.54 %      0.55 %      0.52 % 

Ratio of net investment income to average net assetsd

      0.26 %      2.32 %      1.95 %      2.20 %      3.25 %      1.57 % 

Portfolio turnover ratee

      14 %      13 %      12 %      11 %      26 %      26 % 

 

a 

Based on average shares outstanding throughout each period.

b 

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.

c 

Not annualized.

d 

Annualized for periods of less than one year.

e 

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.

 

66    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Financial Highlights (Continued)

iSHARES®, INC.

(For a share outstanding throughout each period)

 

     iShares MSCI Belgium Capped Investable Market Index Fund  
      Six months
ended
Feb. 28, 2013
(Unaudited)		    

Year ended

Aug. 31, 2012

    

Year ended

Aug. 31, 2011

     Year ended
Aug. 31, 2010		    

Year ended

Aug. 31, 2009

    

Year ended

Aug. 31, 2008

  

Net asset value, beginning of period

    $ 11.97      $ 12.60      $ 11.78      $ 12.06      $ 17.64      $ 25.89   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income from investment operations:

             

Net investment incomea

      0.02        0.38        0.35        0.19        0.22        0.78   

Net realized and unrealized gain (loss)b

      2.32        (0.33 )      0.80        (0.27 )      (5.46 )      (7.27 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      2.34        0.05        1.15        (0.08 )      (5.24 )      (6.49 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Less distributions from:

             

Net investment income

      (0.02 )      (0.67 )      (0.33 )      (0.20 )      (0.34 )      (1.76 ) 

Return of capital

      —        (0.01 )      —        —        —        —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (0.02 )      (0.68 )      (0.33 )      (0.20 )      (0.34 )      (1.76 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of period

    $ 14.29      $ 11.97      $ 12.60      $ 11.78      $ 12.06      $ 17.64   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return

      19.56 %c      1.11 %      9.59 %      (0.60 )%      (29.15 )%      (26.21 )% 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios/Supplemental data:

             

Net assets, end of period (000s)

    $ 60,032      $ 25,386      $ 31,256      $ 58,896      $ 53,042      $ 119,955   

Ratio of expenses to average net assetsd

      0.51 %      0.53 %      0.52 %      0.54 %      0.56 %      0.52 % 

Ratio of net investment income to average net assetsd

      0.23 %      3.35 %      2.56 %      1.55 %      2.23 %      3.32 % 

Portfolio turnover ratee

      21 %      19 %      12 %      17 %      33 %      31 % 

 

a 

Based on average shares outstanding throughout each period.

b 

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.

c 

Not annualized.

d 

Annualized for periods of less than one year.

e 

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.

 

FINANCIAL HIGHLIGHTS

      67   

Table of Contents

Financial Highlights (Continued)

iSHARES®, INC.

(For a share outstanding throughout each period)

 

     iShares MSCI Emerging Markets Eastern Europe Index Fund  
      Six months
ended
Feb. 28, 2013
(Unaudited)		    

Year ended

Aug. 31, 2012

    

Year ended

Aug. 31, 2011

    

Period from
Sep. 30, 2009a

to

Aug. 31, 2010

  

Net asset value, beginning of period

    $ 24.24      $ 29.28      $ 25.66      $ 24.65   
  

 

 

    

 

 

    

 

 

    

 

 

  

Income from investment operations:

         

Net investment incomeb

      0.01        1.01        0.67        0.26   

Net realized and unrealized gain (loss)c

      1.94        (4.92 )      3.45        0.89   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      1.95        (3.91 )      4.12        1.15   
  

 

 

    

 

 

    

 

 

    

 

 

  

Less distributions from:

         

Net investment income

      (0.17 )      (1.13 )      (0.50 )      (0.13 ) 

Net realized gain

      —        —        —        (0.01 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (0.17 )      (1.13 )      (0.50 )      (0.14 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of period

    $ 26.02      $ 24.24      $ 29.28      $ 25.66   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total return

      8.05 %d      (13.14 )%      15.86 %      4.68 %d 
  

 

 

    

 

 

    

 

 

    

 

 

  

Ratios/Supplemental data:

         

Net assets, end of period (000s)

    $ 24,715      $ 20,602      $ 32,212      $ 12,832   

Ratio of expenses to average net assetse

      0.67 %      0.69 %      0.68 %      0.69 % 

Ratio of expenses to average net assets prior to waived fees

      n/a        n/a        0.68 %      n/a   

Ratio of net investment income to average net assetse

      0.05 %      3.97 %      2.06 %      1.05 % 

Portfolio turnover ratef

      4 %      8 %      24 %      13 % 

 

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.

 

68    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Financial Highlights (Continued)

iSHARES®, INC.

(For a share outstanding throughout each period)

 

     iShares MSCI EMU Index Fund  
      Six months
ended
Feb. 28, 2013
(Unaudited)		    

Year ended

Aug. 31, 2012

    

Year ended

Aug. 31, 2011

     Year ended
Aug. 31, 2010		    

Year ended

Aug. 31, 2009

    

Year ended

Aug. 31, 2008a

  

Net asset value, beginning of period

    $ 29.09      $ 31.55      $ 30.75      $ 35.64      $ 45.97      $ 57.15   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income from investment operations:

             

Net investment incomeb

      0.15        1.02        1.23        0.80        0.93        1.71   

Net realized and unrealized gain (loss)c

      4.11        (2.38 )      0.71        (4.76 )      (9.97 )      (9.59 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      4.26        (1.36 )      1.94        (3.96 )      (9.04 )      (7.88 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Less distributions from:

             

Net investment income

      (0.12 )      (1.10 )      (1.14 )      (0.93 )      (1.29 )      (3.30 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (0.12 )      (1.10 )      (1.14 )      (0.93 )      (1.29 )      (3.30 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of period

    $ 33.23      $ 29.09      $ 31.55      $ 30.75      $ 35.64      $ 45.97   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return

      14.65 %d      (3.99 )%      5.78 %      (11.19 )%      (19.05 )%      (14.52 )% 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios/Supplemental data:

             

Net assets, end of period (000s)

    $ 2,379,061      $ 794,226      $ 738,233      $ 823,972      $ 741,270      $ 1,291,808   

Ratio of expenses to average net assetse,f

      0.51 %      0.53 %      0.52 %      0.54 %      0.56 %      0.52 % 

Ratio of net investment income to average net assetsf

      0.92 %      3.55 %      3.38 %      2.29 %      3.07 %      3.06 % 

Portfolio turnover rateg

      2 %      7 %      8 %      5 %      8 %      27 % 

 

a 

Per share amounts were adjusted to reflect a two-for-one stock split effective July 24, 2008.

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 

Ratios for the years ended August 31, 2010 and prior have been recalculated, as necessary, to conform with the current presentation of foreign taxes.

f 

Annualized for periods of less than one year.

g 

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.

 

FINANCIAL HIGHLIGHTS

      69   

Table of Contents

Financial Highlights (Continued)

iSHARES®, INC.

(For a share outstanding throughout each period)

 

     iShares MSCI France Index Fund  
      Six months
ended
Feb. 28, 2013
(Unaudited)		    

Year ended

Aug. 31, 2012

    

Year ended

Aug. 31, 2011

     Year ended
Aug. 31, 2010		    

Year ended

Aug. 31, 2009

    

Year ended

Aug. 31, 2008

  

Net asset value, beginning of period

    $ 20.70      $ 22.60      $ 21.03      $ 24.28      $ 30.70      $ 36.53   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income from investment operations:

             

Net investment incomea

      0.10        0.59        0.86        0.65        0.66        0.93   

Net realized and unrealized gain (loss)b

      2.86        (1.80 )      1.38        (3.30 )      (6.13 )      (5.17 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      2.96        (1.21 )      2.24        (2.65 )      (5.47 )      (4.24 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Less distributions from:

             

Net investment income

      (0.11 )      (0.69 )      (0.67 )      (0.60 )      (0.95 )      (1.59 ) 

Return of capital

      —        (0.00 )c      —        —        —        —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (0.11 )      (0.69 )      (0.67 )      (0.60 )      (0.95 )      (1.59 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of period

    $ 23.55      $ 20.70      $ 22.60      $ 21.03      $ 24.28      $ 30.70   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return

      14.32 %d      (5.05 )%      10.24 %      (10.98 )%      (17.11 )%      (11.96 )% 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios/Supplemental data:

             

Net assets, end of period (000s)

    $ 466,244      $ 401,626      $ 357,137      $ 239,706      $ 184,511      $ 227,203   

Ratio of expenses to average net assetse,f

      0.51 %      0.53 %      0.52 %      0.53 %      0.55 %      0.52 % 

Ratio of net investment income to average net assetsf

      0.86 %      2.91 %      3.38 %      2.71 %      3.18 %      2.60 % 

Portfolio turnover rateg

      1 %      6 %      6 %      6 %      6 %      10 % 

 

a 

Based on average shares outstanding throughout each period.

b 

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.

c 

Rounds to less than $0.01.

d 

Not annualized.

e 

Ratios for the years ended August 31, 2010 and prior have been recalculated, as necessary, to conform with the current presentation of foreign taxes.

f 

Annualized for periods of less than one year.

g 

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.

 

70    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Financial Highlights (Continued)

iSHARES®, INC.

(For a share outstanding throughout each period)

 

     iShares MSCI Germany Index Fund  
      Six months
ended
Feb. 28, 2013
(Unaudited)		    

Year ended

Aug. 31, 2012

    

Year ended

Aug. 31, 2011

     Year ended
Aug. 31, 2010		    

Year ended

Aug. 31, 2009

    

Year ended

Aug. 31, 2008

  

Net asset value, beginning of period

    $ 21.34      $ 21.02      $ 19.45      $ 20.86      $ 27.55      $ 32.18   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income from investment operations:

             

Net investment incomea

      0.02        0.56        0.86        0.38        0.58        0.88   

Net realized and unrealized gain (loss)b

      3.34        0.34        1.38        (1.49 )      (6.65 )      (3.84 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      3.36        0.90        2.24        (1.11 )      (6.07 )      (2.96 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Less distributions from:

             

Net investment income

      —        (0.58 )      (0.67 )      (0.30 )      (0.62 )      (1.67 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      —        (0.58 )      (0.67 )      (0.30 )      (0.62 )      (1.67 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of period

    $ 24.70      $ 21.34      $ 21.02      $ 19.45      $ 20.86      $ 27.55   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return

      15.75 %c      4.55 %      10.84 %      (5.35 )%      (21.62 )%      (9.81 )% 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios/Supplemental data:

             

Net assets, end of period (000s)

    $ 3,564,717      $ 2,797,029      $ 2,768,171      $ 1,487,881      $ 619,638      $ 669,452   

Ratio of expenses to average net assetsd

      0.51 %      0.53 %      0.51 %      0.53 %      0.55 %      0.52 % 

Ratio of net investment income to average net assetsd

      0.16 %      2.72 %      3.45 %      1.80 %      3.18 %      2.72 % 

Portfolio turnover ratee

      1 %      4 %      13 %      5 %      15 %      11 % 

 

a 

Based on average shares outstanding throughout each period.

b 

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.

c 

Not annualized.

d 

Annualized for periods of less than one year.

e 

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.

 

FINANCIAL HIGHLIGHTS

      71   

Table of Contents

Financial Highlights (Continued)

iSHARES®, INC.

(For a share outstanding throughout each period)

 

     iShares MSCI Italy Capped Index Fund  
      Six months
ended
Feb. 28, 2013
(Unaudited)		    

Year ended

Aug. 31, 2012

    

Year ended

Aug. 31, 2011

     Year ended
Aug. 31, 2010		    

Year ended

Aug. 31, 2009

    

Year ended

Aug. 31, 2008

  

Net asset value, beginning of period

    $ 11.78      $ 13.58      $ 15.00      $ 19.05      $ 25.04      $ 33.82   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income from investment operations:

             

Net investment incomea

      0.05        0.41        0.54        0.39        0.47        1.53   

Net realized and unrealized gain (loss)b

      0.74        (1.79 )      (1.47 )      (3.99 )      (5.82 )      (7.71 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      0.79        (1.38 )      (0.93 )      (3.60 )      (5.35 )      (6.18 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Less distributions from:

             

Net investment income

      (0.06 )      (0.42 )      (0.49 )      (0.44 )      (0.64 )      (2.60 ) 

Return of capital

      —        (0.00 )c      —        (0.01 )      —        —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (0.06 )      (0.42 )      (0.49 )      (0.45 )      (0.64 )      (2.60 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of period

    $ 12.51      $ 11.78      $ 13.58      $ 15.00      $ 19.05      $ 25.04   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return

      6.61 %d      (9.98 )%      (6.80 )%      (19.11 )%      (20.78 )%      (19.43 )% 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios/Supplemental data:

             

Net assets, end of period (000s)

    $ 551,695      $ 196,212      $ 144,612      $ 76,500      $ 125,716      $ 244,154   

Ratio of expenses to average net assetse,f

      0.51 %      0.53 %      0.51 %      0.54 %      0.55 %      0.52 % 

Ratio of net investment income to average net assetsf

      0.70 %      3.41 %      3.15 %      2.17 %      2.85 %      5.06 % 

Portfolio turnover rateg

      36 %      14 %      16 %      12 %      18 %      29 % 

 

a 

Based on average shares outstanding throughout each period.

b 

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.

c 

Rounds to less than $0.01.

d 

Not annualized.

e 

Ratios for the years ended August 31, 2010 and prior have been recalculated, as necessary, to conform with the current presentation of foreign taxes.

f 

Annualized for periods of less than one year.

g 

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.

 

72    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Financial Highlights (Continued)

iSHARES®, INC.

(For a share outstanding throughout each period)

 

     iShares MSCI Netherlands Investable Market Index Fund  
      Six months
ended
Feb. 28, 2013
(Unaudited)		    

Year ended

Aug. 31, 2012

    

Year ended

Aug. 31, 2011

     Year ended
Aug. 31, 2010		    

Year ended

Aug. 31, 2009

    

Year ended

Aug. 31, 2008

  

Net asset value, beginning of period

    $ 18.23      $ 18.45      $ 17.89      $ 18.52      $ 24.38      $ 29.75   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income from investment operations:

             

Net investment incomea

      0.03        0.39        0.48        0.45        0.35        1.10   

Net realized and unrealized gain (loss)b

     2.09        (0.08 )      0.55        (0.70 )      (5.55 )      (4.68 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      2.12        0.31        1.03        (0.25 )      (5.20 )      (3.58 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Less distributions from:

             

Net investment income

      (0.04 )      (0.53 )      (0.47 )      (0.38 )      (0.66 )      (1.79 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (0.04 )      (0.53 )      (0.47 )      (0.38 )      (0.66 )      (1.79 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of period

    $ 20.31      $ 18.23      $ 18.45      $ 17.89      $ 18.52      $ 24.38   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return

      11.61 %c      1.96 %      5.44 %      (1.44 )%      (20.59 )%      (12.67 )% 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios/Supplemental data:

             

Net assets, end of period (000s)

    $ 149,306      $ 78,397      $ 121,740      $ 147,611      $ 83,351      $ 209,653   

Ratio of expenses to average net assetsd

      0.51 %      0.53 %      0.52 %      0.53 %      0.55 %      0.52 % 

Ratio of net investment income to average net assetsd

      0.28 %      2.21 %      2.26 %      2.31 %      2.24 %      3.86 % 

Portfolio turnover ratee

      5 %      10 %      6 %      9 %      15 %      26 % 

 

a 

Based on average shares outstanding throughout each period.

b 

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.

c 

Not annualized.

d 

Annualized for periods of less than one year.

e 

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.

 

FINANCIAL HIGHLIGHTS

      73   

Table of Contents

Financial Highlights (Continued)

iSHARES®, INC.

(For a share outstanding throughout each period)

 

     iShares MSCI Spain Capped Index Fund  
      Six months
ended
Feb. 28, 2013
(Unaudited)		     Year ended
Aug. 31, 2012		    

Year ended
Aug. 31, 2011

     Year ended
Aug. 31, 2010		    

Year ended

Aug. 31, 2009

    

Year ended

Aug. 31, 2008

  

Net asset value, beginning of period

    $ 26.28      $ 35.89      $ 37.02      $ 47.65      $ 50.41      $ 58.06   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income from investment operations:

             

Net investment incomea

      0.65        2.12        2.14        1.64        1.75        1.98   

Net realized and unrealized gain (loss)b

     3.88        (8.93 )      (1.36 )      (10.01 )      (2.14 )      (7.33 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      4.53        (6.81 )      0.78        (8.37 )      (0.39 )      (5.35 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Less distributions from:

             

Net investment income

      (0.73 )      (2.80 )      (1.91 )      (2.26 )      (2.37 )      (2.30 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (0.73 )      (2.80 )      (1.91 )      (2.26 )      (2.37 )      (2.30 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of period

    $ 30.08      $ 26.28      $ 35.89      $ 37.02      $ 47.65      $ 50.41   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return

      17.29 %c      (19.36 )%      1.78 %      (17.91 )%      0.64 %      (9.76 )% 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios/Supplemental data:

             

Net assets, end of period (000s)

    $ 284,280      $ 195,093      $ 180,360      $ 194,362      $ 278,734      $ 321,349   

Ratio of expenses to average net assetsd

      0.51 %      0.53 %      0.52 %      0.54 %      0.56 %      0.52 % 

Ratio of net investment income to average net assetsd

      4.46 %      7.60 %      5.31 %      3.72 %      4.70 %      3.28 % 

Portfolio turnover ratee

      24 %      17 %      14 %      9 %      19 %      22 % 

 

a 

Based on average shares outstanding throughout each period.

b 

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.

c 

Not annualized.

d 

Annualized for periods of less than one year.

e 

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.

 

74    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Financial Highlights (Continued)

iSHARES®, INC.

(For a share outstanding throughout each period)

 

     iShares MSCI Sweden Index Fund  
      Six months
ended
Feb. 28, 2013
(Unaudited)		    

Year ended

Aug. 31, 2012

    

Year ended

Aug. 31, 2011

     Year ended
Aug. 31, 2010		    

Year ended

Aug. 31, 2009

    

Year ended

Aug. 31, 2008

  

Net asset value, beginning of period

    $ 27.32      $ 26.82      $ 24.46      $ 22.86      $ 24.48      $ 34.57   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income from investment operations:

             

Net investment income (loss)a

     (0.06 )      0.83        1.18        0.48        0.40        0.91   

Net realized and unrealized gain (loss)b

     5.28        0.58        2.22        1.73        (1.56 )      (8.63 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      5.22        1.41        3.40        2.21        (1.16 )      (7.72 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Less distributions from:

             

Net investment income

      —        (0.86 )      (1.04 )      (0.61 )      (0.46 )      (2.37 ) 

Return of capital

      —        (0.05 )      —        —        —        —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      —        (0.91 )      (1.04 )      (0.61 )      (0.46 )      (2.37 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of period

    $ 32.54      $ 27.32      $ 26.82      $ 24.46      $ 22.86      $ 24.48   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return

      19.11 %c      5.57 %      13.40 %      9.70 %      (4.04 )%      (23.16 )% 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios/Supplemental data:

             

Net assets, end of period (000s)

    $ 392,954      $ 370,832      $ 329,887      $ 249,491      $ 190,333      $ 227,654   

Ratio of expenses to average net assetsd

      0.51 %      0.53 %      0.51 %      0.53 %      0.55 %      0.51 % 

Ratio of net investment income (loss) to average net assetsd

      (0.38 )%      3.17 %      3.80 %      1.97 %      2.34 %      2.91 % 

Portfolio turnover ratee

      2 %      7 %      9 %      10 %      9 %      17 % 

 

a 

Based on average shares outstanding throughout each period.

b 

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.

c 

Not annualized.

d 

Annualized for periods of less than one year.

e 

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.

 

FINANCIAL HIGHLIGHTS

      75   

Table of Contents

Financial Highlights (Continued)

iSHARES®, INC.

(For a share outstanding throughout each period)

 

     iShares MSCI Switzerland Capped Index Fund  
      Six months
ended
Feb. 28, 2013
(Unaudited)		    

Year ended

Aug. 31, 2012

    

Year ended

Aug. 31, 2011

     Year ended
Aug. 31, 2010		    

Year ended

Aug. 31, 2009

    

Year ended

Aug. 31, 2008

  

Net asset value, beginning of period

    $ 23.85      $ 24.67      $ 21.64      $ 20.71      $ 23.09      $ 25.78   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income from investment operations:

             

Net investment incomea

      0.05        0.63        0.59        0.39        0.25        0.49   

Net realized and unrealized gain (loss)b

     5.06        (0.80 )      2.97        0.90        (2.30 )      (2.51 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      5.11        (0.17 )      3.56        1.29        (2.05 )      (2.02 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Less distributions from:

             

Net investment income

      —        (0.65 )      (0.53 )      (0.36 )      (0.33 )      (0.67 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      —        (0.65 )      (0.53 )      (0.36 )      (0.33 )      (0.67 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of period

    $ 28.96      $ 23.85      $ 24.67      $ 21.64      $ 20.71      $ 23.09   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return

      21.43 %c      (0.53 )%      16.30 %      6.35 %      (8.63 )%      (7.97 )% 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios/Supplemental data:

             

Net assets, end of period (000s)

    $ 756,708      $ 554,570      $ 524,159      $ 405,755      $ 271,855      $ 366,525   

Ratio of expenses to average net assetsd

      0.51 %      0.53 %      0.52 %      0.53 %      0.56 %      0.52 % 

Ratio of net investment income to average net assetsd

      0.40 %      2.73 %      2.35 %      1.80 %      1.42 %      1.93 % 

Portfolio turnover ratee

      8 %      8 %      7 %      7 %      16 %      11 % 

 

a 

Based on average shares outstanding throughout each period.

b 

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.

c 

Not annualized.

d 

Annualized for periods of less than one year.

e 

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.

 

76    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Financial Highlights (Continued)

iSHARES®, INC.

(For a share outstanding throughout each period)

 

     iShares MSCI United Kingdom Index Fund  
      Six months
ended
Feb. 28, 2013
(Unaudited)		    

Year ended

Aug. 31, 2012

    

Year ended

Aug. 31, 2011

     Year ended
Aug. 31, 2010		    

Year ended

Aug. 31, 2009

    

Year ended

Aug. 31, 2008

  

Net asset value, beginning of period

    $ 16.91      $ 16.43      $ 15.01      $ 15.02      $ 19.35      $ 24.73   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income from investment operations:

             

Net investment incomea

      0.21        0.64        0.54        0.46        0.50        0.83   

Net realized and unrealized gain (loss)b

      1.09        0.46        1.35        (0.03 )      (4.26 )      (4.89 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      1.30        1.10        1.89        0.43        (3.76 )      (4.06 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Less distributions from:

             

Net investment income

      (0.25 )      (0.62 )      (0.47 )      (0.44 )      (0.57 )      (1.32 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (0.25 )      (0.62 )      (0.47 )      (0.44 )      (0.57 )      (1.32 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of period

    $ 17.96      $ 16.91      $ 16.43      $ 15.01      $ 15.02      $ 19.35   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return

      7.71 %c      6.94 %      12.50 %      2.87 %      (18.68 )%      (17.16 )% 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios/Supplemental data:

             

Net assets, end of period (000s)

    $ 1,440,537      $ 1,356,494      $ 1,199,333      $ 930,412      $ 739,124      $ 882,502   

Ratio of expenses to average net assetsd

      0.51 %      0.53 %      0.52 %      0.53 %      0.55 %      0.52 % 

Ratio of net investment income to average net assetsd

      2.39 %      3.88 %      3.07 %      2.98 %      3.90 %      3.64 % 

Portfolio turnover ratee

      2 %      7 %      4 %      7 %      11 %      14 % 

 

a 

Based on average shares outstanding throughout each period.

b 

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.

c 

Not annualized.

d 

Annualized for periods of less than one year.

e 

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.

 

FINANCIAL HIGHLIGHTS

      77   

Table of Contents

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 MSCI Index Fund   Diversification
Classification		  

Austria Capped Investable Marketa

     Non-diversified   

Belgium Capped Investable Marketb

     Non-diversified   

Emerging Markets Eastern Europe

     Non-diversified   

EMU

     Diversified   

France

     Non-diversified   

Germany

     Non-diversified   
iShares MSCI Index Fund   Diversification
Classification		  

Italy Cappedc

     Non-diversified   

Netherlands Investable Market

     Non-diversified   

Spain Cappedd

     Non-diversified   

Sweden

     Non-diversified   

Switzerland Cappede

     Non-diversified   

United Kingdom

     Non-diversified   
 

 

  a   

Formerly the iShares MSCI Austria Investable Market Index Fund.

  b   

Formerly the iShares MSCI Belgium Investable Market Index Fund.

  c   

Formerly the iShares MSCI Italy Index Fund.

  d   

Formerly the iShares MSCI Spain Index Fund.

  e   

Formerly the iShares MSCI Switzerland Index Fund.

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

 

78    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Notes to Financial Statements (Unaudited) (Continued)

iSHARES®, INC.

 

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.

SECURITY VALUATION

Each Fund’s investments are valued at fair value each day that the Fund’s listing exchange is open. 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 BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) provides oversight of the valuation of investments for the Funds. The investments of each Fund are valued pursuant to policies and procedures developed by the Global Valuation Committee and approved by the Board of Directors of the Company (the “Board”).

 

  •  

Equity investments traded on a recognized securities exchange are valued at that day’s last reported trade price or the official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price.

 

  •  

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

 

  •  

Financial futures contracts are valued at that day’s last reported settlement price on the exchange where the contract is traded.

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 deemed relevant by the Global Valuation Committee, in accordance with policies approved by the Board. These factors include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other factors, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or other default rates. Valuations based on such factors are reported to the Board on a quarterly basis.

The Global Valuation Committee employs various methods for calibrating valuation approaches for investments where an active market does not exist, including regular due diligence of the Company’s pricing vendors, a regular review of key inputs and assumptions, transactional back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing or stale prices and large movements in market values, and reviews of market related activity.

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 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. The three levels of the fair value hierarchy are as follows:

 

  •  

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

 

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iSHARES®, INC.

 

  •  

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 (such as exchange rates, financing terms, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; 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. In accordance with the Company’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period.

The following table summarizes the value of each of the Funds’ investments according to the fair value hierarchy as of February 28, 2013. The breakdown of each Fund’s investments into major categories is disclosed in its respective schedule of investments.

 

iShares MSCI Index Fund and
Investment Type

 

    Investments  
   Level 1      Level 2      Level 3      Total  

Austria Capped Investable Market

            

Assets:

            

Common Stocks

    $ 107,984,012       $ —       $ 25       $ 107,984,037   

Money Market Funds

      2,045,243         —         —         2,045,243   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 110,029,255       $ —       $ 25       $ 110,029,280   
  

 

 

     

 

 

     

 

 

     

 

 

  

Belgium Capped Investable Market

            

Assets:

            

Common Stocks

    $ 59,923,571       $ —       $ —       $ 59,923,571   

Money Market Funds

      488,451         —         —         488,451   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 60,412,022       $ —       $ —       $ 60,412,022   
  

 

 

     

 

 

     

 

 

     

 

 

  

Emerging Markets Eastern Europe

            

Assets:

            

Common Stocks

    $ 23,816,921       $ —       $ —       $ 23,816,921   

Preferred Stocks

      876,199         —         —         876,199   

Money Market Funds

      3,799         —         —         3,799   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 24,696,919       $ —       $ —       $ 24,696,919   
  

 

 

     

 

 

     

 

 

     

 

 

  

EMU

            

Assets:

            

Common Stocks

    $ 2,325,040,398       $ —       $ 8       $ 2,325,040,406   

Preferred Stocks

      50,462,004         —         —         50,462,004   

Money Market Funds

      17,321,174         —         —         17,321,174   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 2,392,823,576       $ —       $ 8       $ 2,392,823,584   
  

 

 

     

 

 

     

 

 

     

 

 

  
                                     

 

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iSHARES®, INC.

 

iShares MSCI Index Fund and
Investment Type

 

    Investments  
   Level 1      Level 2      Level 3     Total  

France

           

Assets:

           

Common Stocks

    $ 466,088,656       $ —       $ —      $ 466,088,656   

Money Market Funds

      814,865         —         —        814,865   
  

 

 

     

 

 

     

 

 

    

 

 

  
   $ 466,903,521       $ —       $ —      $ 466,903,521   
  

 

 

     

 

 

     

 

 

    

 

 

  

Germany

           

Assets:

           

Common Stocks

    $ 3,302,979,517       $ —       $ —      $ 3,302,979,517   

Preferred Stocks

      248,782,231         —         —        248,782,231   

Money Market Funds

      8,180,312         —         —        8,180,312   

Futures Contractsa

      234,506         —         —        234,506   
  

 

 

     

 

 

     

 

 

    

 

 

  
   $ 3,560,176,566       $ —       $ —      $ 3,560,176,566   
  

 

 

     

 

 

     

 

 

    

 

 

  

Italy Capped

           

Assets:

           

Common Stocks

    $ 551,218,245       $ —       $ —      $ 551,218,245   

Money Market Funds

      34,027,150         —         —        34,027,150   
  

 

 

     

 

 

     

 

 

    

 

 

  
   $ 585,245,395       $ —       $ —      $ 585,245,395   
  

 

 

     

 

 

     

 

 

    

 

 

  

Netherlands Investable Market

           

Assets:

           

Common Stocks

    $ 148,991,685       $ —       $ 1      $ 148,991,686   

Warrants

      —         —         0 b      0 b 

Money Market Funds

      637,567         —         —        637,567   
  

 

 

     

 

 

     

 

 

    

 

 

  
   $ 149,629,252       $ —       $ 1      $ 149,629,253   
  

 

 

     

 

 

     

 

 

    

 

 

  

Spain Capped

           

Assets:

           

Common Stocks

    $ 284,126,866       $ —       $ —      $ 284,126,866   

Money Market Funds

      4,740,624         —         —        4,740,624   
  

 

 

     

 

 

     

 

 

    

 

 

  
   $ 288,867,490       $ —       $ —      $ 288,867,490   
  

 

 

     

 

 

     

 

 

    

 

 

  

Sweden

           

Assets:

           

Common Stocks

    $ 392,888,425       $ —       $ —      $ 392,888,425   

Money Market Funds

      12,420         —         —        12,420   
  

 

 

     

 

 

     

 

 

    

 

 

  
   $ 392,900,845       $ —       $ —      $ 392,900,845   
  

 

 

     

 

 

     

 

 

    

 

 

  
                                    

 

NOTES TO FINANCIAL STATEMENTS

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iSHARES®, INC.

 

iShares MSCI Index Fund and
Investment Type

 

    Investments  
   Level 1      Level 2      Level 3      Total  

Switzerland Capped

            

Assets:

            

Common Stocks

    $ 748,230,387       $ —       $ —       $ 748,230,387   

Money Market Funds

      3,516         —         —         3,516   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 748,233,903       $ —       $ —       $ 748,233,903   
  

 

 

     

 

 

     

 

 

     

 

 

  

United Kingdom

            

Assets:

            

Common Stocks

    $ 1,432,151,666       $ —       $ —       $ 1,432,151,666   

Money Market Funds

      71,095         —         —         71,095   

Futures Contracts a

      448,061         —         —         448,061   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 1,432,670,822       $ —       $ —       $ 1,432,670,822   
  

 

 

     

 

 

     

 

 

     

 

 

  
                                     

 

  a   

Futures contracts are shown at the net unrealized appreciation (depreciation) on the contracts.

  b   

Rounds to less than $1.

SECURITY TRANSACTIONS AND INCOME RECOGNITION

Security transactions are accounted for on trade date. Dividend income is recognized on the ex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities as of February 28, 2013 are reflected in dividends receivable. Non-cash dividends received in the form of stock in an elective dividend, if any, are recorded as dividend income at fair value. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. Interest income is accrued daily. Realized gains and losses on investment transactions are determined using the specific identification method.

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, stock dividends, capital gains on investments, or certain foreign currency transactions. 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

 

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iSHARES®, INC.

 

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 stock dividends are presented as “other foreign taxes,” and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable as of February 28, 2013, 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 December 2011, the Financial Accounting Standards Board issued guidance to enhance current disclosure requirements on offsetting of certain assets and liabilities and enable financial statement users to compare financial statements prepared under U.S. GAAP and International Financial Reporting Standards (IFRS). The new disclosures are required for investments and derivative financial instruments subject to master netting agreements or similar agreements and require an entity to disclose both gross and net information about such investments and transactions eligible for offset in the statement of assets and liabilities. In addition, the standard requires disclosure of collateral received and posted in connection with master netting agreements or similar agreements. The guidance is effective for financial statements for fiscal years beginning after January 1, 2013, and interim periods within those fiscal years. Management is evaluating the impact of this guidance on the Funds’ financial statements and disclosures.

 

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.

 

NOTES TO FINANCIAL STATEMENTS

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iSHARES®, INC.

 

For its investment advisory services to each Fund except for the iShares MSCI Emerging Markets Eastern Europe Index Fund, BFA is entitled to an annual investment advisory fee based on each Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:

 

Investment Advisory Fee      Aggregate Average Daily Net Assets
    0.59 %     

First $7 billion

    0.54       

Over $7 billion, up to and including $11 billion

    0.49       

Over $11 billion, up to and including $24 billion

    0.44       

Over $24 billion, up to and including $48 billion

    0.40       

Over $48 billion

For its investment advisory services to the iShares MSCI Emerging Markets Eastern Europe Index Fund, BFA is entitled to an annual investment advisory fee based on the Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:

 

Investment Advisory Fee      Aggregate Average Daily Net Assets
    0.75 %     

First $14 billion

    0.68       

Over $14 billion, up to and including $28 billion

    0.61       

Over $28 billion, up to and including $42 billion

    0.56       

Over $42 billion, up to and including $56 billion

    0.50       

Over $56 billion, up to and including $70 billion

    0.45       

Over $70 billion, up to and including $84 billion

    0.40       

Over $84 billion

The U.S. Securities and Exchange Commission has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”) to serve as securities lending agent for the Funds, subject to applicable conditions. BTC is an affiliate of BFA. Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, and any fees or other payments to and from borrowers of securities. Each Fund retains 65% of securities lending income and pays a fee to BTC equal to 35% of such income. The Funds benefit from a borrower default indemnity provided by BlackRock. As securities lending agent, BTC bears all operational costs directly related to securities lending as well as the cost of borrower default indemnification. BTC is also responsible for fees and expenses incurred by each Fund as a result of the investment of cash collateral received for securities on loan in a money market fund managed by BFA or an affiliate.

For the six months ended February 28, 2013, BTC earned securities lending agent fees from the Funds as follows:

 

iShares MSCI Index Fund   Securities Lending
Agent Fees		  

Austria Capped Investable Market

   $ 2,731   

Belgium Capped Investable Market

     1,554   

EMU

     106,470   

France

     4,113   

Germany

     43,190   
iShares MSCI Index Fund   Securities Lending
Agent Fees		  

Italy Capped

   $ 19,218   

Netherlands Investable Market

     1,661   

Spain Capped

     115,366   

Sweden

     392   

United Kingdom

     37,661   
 

 

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iSHARES®, INC.

 

BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the 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.

The PNC Financial Services Group, Inc. is the largest stockholder of BlackRock and is considered to be an affiliate of the Funds for 1940 Act purposes.

Certain directors and officers of the Company are also officers of BTC and/or BFA.

 

3. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the six months ended February 28, 2013 were as follows:

 

iShares MSCI Index Fund    Purchases      Sales  

Austria Capped Investable Market

    $ 11,888,050       $ 11,948,193   

Belgium Capped Investable Market

      9,336,697         8,978,527   

Emerging Markets Eastern Europe

      1,050,829         775,966   

EMU

      41,241,790         33,853,856   

France

      6,061,954         6,045,386   

Germany

      39,241,043         28,046,758   

Italy Capped

      132,862,180         132,650,089   

Netherlands Investable Market

      6,531,647         6,437,630   

Spain Capped

      43,367,823         40,963,342   

Sweden

      6,369,681         7,145,785   

Switzerland Capped

      52,661,149         54,089,142   

United Kingdom

      24,583,200         23,323,697   

In-kind transactions (see Note 4) for the six months ended February 28, 2013 were as follows:

 

iShares MSCI Index Fund    In-kind
Purchases		      In-kind Sales  

Austria Capped Investable Market

    $ 62,963,305       $ 25,414,259   

Belgium Capped Investable Market

      26,737,276         569,711   

Emerging Markets Eastern Europe

      8,109,925         5,007,320   

EMU

      1,553,231,748         153,234,243   

France

      9,147,376         —   

Germany

      926,029,280         674,060,233   

Italy Capped

      455,795,774         94,023,769   

Netherlands Investable Market

      73,763,051         14,336,889   

Spain Capped

      135,716,793         74,959,929   

Sweden

      13,899,076         56,342,267   

Switzerland Capped

      125,582,442         54,150,141   

 

NOTES TO FINANCIAL STATEMENTS

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iSHARES®, INC.

 

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 may also 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. LOANS OF PORTFOLIO SECURITIES

Each Fund may lend its investment securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter, at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Funds and any additional required collateral is delivered to the Funds on the next business day. The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Funds benefit from a borrower default indemnity provided by BlackRock. BlackRock’s indemnity allows for full replacement of securities lent. Any securities lending cash collateral may be reinvested in certain short-term instruments either directly on behalf of a fund or through one or more joint accounts or money market funds, including those managed by BFA or its affiliates. Each Fund could suffer a loss if the value of an investment purchased with cash collateral falls below the value of the cash collateral received.

As of February 28, 2013, any securities on loan were collateralized by cash. The cash collateral received was invested in money market funds managed by BFA. The value of any securities on loan as of February 28, 2013 and the value of the related collateral are disclosed in the statements of assets and liabilities. Securities lending income, as disclosed in the statements of operations, represents the income earned from the investment of the cash collateral, net of fees and other payments to and from borrowers, and less the fees paid to BTC as securities lending agent.

 

6. 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.

 

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iSHARES®, INC.

 

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

As of August 31, 2012, the Funds’ fiscal year-end, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:

 

iShares MSCI
Index Fund 		  Non-
Expiring a		     Expiring
2013		     Expiring
2014		     Expiring
2015		     Expiring
2016		     Expiring
2017		     Expiring
2018		     Expiring
2019		     Total  

Austria Capped Investable Market

   $ 3,424,334      $ —      $ —      $ 9,795,917      $ 2,587,916      $ 7,102,366      $ 16,657,011      $ 13,826,937      $ 53,394,481   

Belgium Capped Investable Market

     3,414,294        33,969        —        —        1,698,444        5,953,120        10,826,174        19,023,517        40,949,518   

Emerging Markets Eastern Europe

     243,179        —        —        —        —        —        —        204,914        448,093   

EMU

     16,675,236        1,873,963        —        —        —        26,644,200        68,035,542        30,230,739        143,459,680   

France

     436,330        —        —        158,472        335,795        3,408,374        7,008,530        2,858,814        14,206,315   

Germany

     9,227,956        2,241,687        —        4,227,713        3,394,735        27,790,050        28,490,949        32,215,954        107,589,044   

Italy Capped

     3,331,166        527,327        —        —        472,268        2,743,650        18,169,627        9,459,662        34,703,700   

Netherlands Investable Market

     3,096,503        129,137        403,525        260,715        1,195,162        5,819,153        22,256,170        2,329,005        35,489,370   

Spain Capped

     5,225,806        —        —        —        —        5,946,927        15,120,672        8,619,903        34,913,308   

Sweden

     5,222,903        —        107,613        —        100,015        13,686,746        8,483,510        5,244,977        32,845,764   

Switzerland Capped

     3,464,888        354,252        —        —        —        2,837,786        22,569,380        6,955,758        36,182,064   

United Kingdom

     7,758,079        1,517,783        7,063,063        —        261,754        16,140,312        23,559,917        22,514,433        78,815,341   

 

  a   

Must be utilized prior to losses subject to expiration.

The Funds may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” The Funds may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.

 

NOTES TO FINANCIAL STATEMENTS

      87   

Table of Contents

Notes to Financial Statements (Unaudited) (Continued)

iSHARES®, INC.

 

As of February 28, 2013, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

 

iShares MSCI Index Fund    Tax Cost      Gross
Unrealized
Appreciation		      Gross
Unrealized
Depreciation		     Net Unrealized
Appreciation
(Depreciation)		  

Austria Capped Investable Market

    $ 142,945,975       $ 2,576,525       $ (35,493,220 )    $ (32,916,695 ) 

Belgium Capped Investable Market

      62,030,241         6,139,124         (7,757,343 )      (1,618,219 ) 

Emerging Markets Eastern Europe

      30,336,679         425,306         (6,065,066 )      (5,639,760 ) 

EMU

      2,633,354,912         119,609,926         (360,141,254 )      (240,531,328 ) 

France

      524,722,074         33,092,711         (90,911,264 )      (57,818,553 ) 

Germany

      3,773,447,482         297,837,866         (511,343,288 )      (213,505,422 ) 

Italy Capped

      636,345,268         6,921,395         (58,021,268 )      (51,099,873 ) 

Netherlands Investable Market

      172,704,089         9,225,064         (32,299,900 )      (23,074,836 ) 

Spain Capped

      323,256,183         12,967,237         (47,355,930 )      (34,388,693 ) 

Sweden

      386,612,583         36,945,548         (30,657,286 )      6,288,262   

Switzerland Capped

      643,756,728         134,179,930         (29,702,755 )      104,477,175   

United Kingdom

      1,486,310,451         132,431,768         (186,519,458 )      (54,087,690 ) 

Management has reviewed the tax positions as of February 28, 2013, inclusive of the open tax return years, and has determined that no provision for income tax is required in the Funds’ financial statements.

 

7. FINANCIAL FUTURES CONTRACTS

Each Fund may purchase or sell financial futures contracts in an effort to help such Fund track its underlying index. A futures contract is a standardized, exchange-traded agreement to buy and sell a financial instrument at a set price on a future date. Upon entering into a futures contract, the Fund is required to pledge to the executing broker which holds segregated from its own assets, an amount of cash, U.S. government securities or other high-quality debt and equity securities equal to the minimum initial margin requirements of the exchange on which the contract is traded. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as margin variation and are recorded by the Fund as unrealized appreciation or depreciation. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Losses may arise if the value of a futures contract decreases due to an unfavorable change in the market rates or values of the underlying instrument during the term of the contract or if the counterparty does not perform under the contract. The use of futures contracts also involves the risk of an imperfect correlation in the movements in the price of futures contracts and the assets underlying such contracts.

 

88    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Notes to Financial Statements (Unaudited) (Continued)

iSHARES®, INC.

 

The following table shows the value of futures contracts held by the Funds as of February 28, 2013 and the related locations in the statements of assets and liabilities, presented by risk exposure category:

 

Assets  
     

iShares MSCI

Germany

Index Fund

      iShares MSCI
United Kingdom
Index Fund		  

Equity contracts:

      

Variation margin/Net assets consist of — net unrealized appreciation (depreciation)a

    $ 234,506       $ 448,061   
  

 

 

     

 

 

  
                   

 

  a   

Represents cumulative appreciation of futures contracts as reported in the schedules of investments.

The following table shows the realized and unrealized gains (losses) on futures contracts held by the Funds during the six months ended February 28, 2013 and the related locations in the statements of operations, presented by risk exposure category:

 

      Net Realized Gain (Loss)  
     

iShares MSCI
Germany

Index Fund

     iShares MSCI
United Kingdom
Index Fund		  

Equity contracts:

     

Futures contracts

    $ 3,336,057      $ 616,847   
  

 

 

    

 

 

  
    
      Net Change in Unrealized
Appreciation/Depreciation		  
     

iShares MSCI
Germany

Index Fund

     iShares MSCI
United Kingdom
Index Fund		  

Equity contracts:

     

Futures contracts

    $ (1,397,952 )    $ 415,039   
  

 

 

    

 

 

  
                  

The following table shows the average quarter-end balances of open futures contracts for the six months ended February 28, 2013:

 

     

iShares MSCI
Germany

Index Fund

      iShares MSCI
United Kingdom
Index Fund		  

Average number of contracts purchased

      69         108   

Average value of contracts purchased

    $ 16,225,759       $ 10,036,827   

 

8. 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

      89   

Table of Contents

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 MSCI Index 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		  

Austria Capped
Investable Market

    $ 0.02496       $ —       $ 0.04484       $ 0.06980         36 %      —   %      64 %      100 % 

Belgium Capped
Investable Market

      0.01862         —         0.00217         0.02079         90        —          10        100   

Emerging Markets
Eastern Europe

      0.17200         —         0.00023         0.17223         100        —          0a         100   

EMU

      0.07032         —         0.05159         0.12191         58        —          42        100   

France

      0.07941         —         0.03402         0.11343         70        —          30        100   

Italy Capped

      0.06107         —         0.00064         0.06171         99        —          1        100   

Netherlands
Investable Market

      0.03514         —         0.00075         0.03589         98        —          2        100   

Spain Capped

      0.69134         —         0.03672         0.72806         95        —          5        100   

United Kingdom

      0.24543         —         0.00773         0.25316         97        —          3        100   

 

  a   

Rounds to less than 1%.

 

90    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents
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 MSCI Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.

A description of the policies that the Funds use 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.

©2013 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.

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iS-SAR-82-0213

Table of Contents

FEBRUARY 28, 2013

 

 

2013 SEMI-ANNUAL REPORT (UNAUDITED)

 

     LOGO

 

iShares, Inc.

 

Ø    

iShares MSCI Australia Index Fund  |  EWA  |  NYSE Arca

Ø    

iShares MSCI Hong Kong Index Fund  |  EWH  |  NYSE Arca

Ø    

iShares MSCI Japan Small Cap Index Fund  |  SCJ  |  NYSE Arca

Ø    

iShares MSCI Malaysia Index Fund  |  EWM  |  NYSE Arca

Ø    

iShares MSCI Pacific ex-Japan Index Fund  |  EPP  |  NYSE Arca

Ø    

iShares MSCI Singapore Index Fund  |  EWS  |  NYSE Arca

Ø    

iShares MSCI South Korea Capped Index Fund  |  EWY  |  NYSE Arca

Ø    

iShares MSCI Taiwan Index Fund  |  EWT  |  NYSE Arca

Ø    

iShares MSCI Thailand Capped Investable Market Index Fund  |  THD  |  NYSE Arca

Table of Contents

Table of Contents

 

Fund Performance Overviews

      5   

Shareholder Expenses

      19   

Schedules of Investments

     21   

iShares MSCI Australia Index Fund

      21   

iShares MSCI Hong Kong Index Fund

      24   

iShares MSCI Japan Small Cap Index Fund

      26   

iShares MSCI Malaysia Index Fund

      37   

iShares MSCI Pacific ex-Japan Index Fund

      39   

iShares MSCI Singapore Index Fund

      42   

iShares MSCI South Korea Capped Index Fund

      44   

iShares MSCI Taiwan Index Fund

      47   

iShares MSCI Thailand Capped Investable Market Index Fund

      50   

Financial Statements

      53   

Financial Highlights

      64   

Notes to Financial Statements

      73   

Supplemental Information

      85   

Table of Contents

Fund Performance Overview

iSHARES® MSCI AUSTRALIA INDEX FUND

Performance as of February 28, 2013

 

Average Annual Total Returns
Year Ended 2/28/13   Five Years Ended 2/28/13   Ten Years Ended 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
18.91%   20.03%   19.37%   4.71%   5.06%   4.91%   16.37%   16.21%   16.21%
Cumulative Total Returns
Year Ended 2/28/13   Five Years Ended 2/28/13   Ten Years Ended 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
18.91%   20.03%   19.37%   25.86%   28.01%   27.05%   355.53%   349.09%   349.18%

“Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

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. 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 MSCI Australia Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI Australia IndexSM (the “Index”). The Index consists of stocks traded primarily on the Australian Stock Exchange. 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 February 28, 2013, the total return for the Fund was 19.96%, net of fees, while the total return for the Index was 20.20%.

 

PORTFOLIO ALLOCATION

As of 2/28/13

 

Sector    Percentage of
Net Assets

Financial

      48.73 % 

Basic Materials

      18.78   

Consumer Non-Cyclical

      11.77   

Consumer Cyclical

      5.78   

Industrial

      4.94   

Energy

      4.45   

Utilities

      2.29   

Communications

      1.91   

Technology

      0.43   

Short-Term and Other Net Assets

      0.92   
  

 

 

  

TOTAL

      100.00 % 
  

 

 

  

TEN LARGEST FUND HOLDINGS

As of 2/28/13

 

Security    Percentage of
Net Assets

BHP Billiton Ltd.

      11.35 % 

Commonwealth Bank of Australia

      10.32   

Westpac Banking Corp.

      9.04   

Australia and New Zealand Banking Group Ltd.

      7.44   

National Australia Bank Ltd.

      6.69   

Woolworths Ltd.

      4.10   

Wesfarmers Ltd.

      3.94   

CSL Ltd.

      2.87   

Rio Tinto Ltd.

      2.79   

Woodside Petroleum Ltd.

      2.36   
  

 

 

  

TOTAL

      60.90 % 
  

 

 

  
 

 

FUND PERFORMANCE OVERVIEWS

      5   

Table of Contents

Fund Performance Overview

iSHARES® MSCI HONG KONG INDEX FUND

Performance as of February 28, 2013

 

Average Annual Total Returns
Year Ended 2/28/13   Five Years Ended 2/28/13   Ten Years Ended 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
13.08%   13.84%   13.51%   4.25%   5.01%   4.78%   13.55%   13.47%   14.23%
Cumulative Total Returns
Year Ended 2/28/13   Five Years Ended 2/28/13   Ten Years Ended 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
13.08%   13.84%   13.51%   23.14%   27.71%   26.31%   256.42%   253.92%   278.19%

“Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

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. 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 MSCI Hong Kong Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI Hong Kong IndexSM (the “Index”). The Index consists of stocks traded primarily on the Stock Exchange of Hong Kong Limited. 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 February 28, 2013, the total return for the Fund was 19.59%, net of fees, while the total return for the Index was 19.92%.

 

PORTFOLIO ALLOCATION

As of 2/28/13

 

Sector    Percentage of
Net Assets

Financial

      56.40 % 

Diversified

      13.22   

Consumer Cyclical

      12.82   

Utilities

      11.90   

Industrial

      2.98   

Communications

      1.09   

Consumer Non-Cyclical

      0.70   

Technology

      0.70   

Short-Term and Other Net Assets

      0.19   
  

 

 

  

TOTAL

      100.00 % 
  

 

 

  

TEN LARGEST FUND HOLDINGS

As of 2/28/13

 

Security    Percentage of
Net Assets

AIA Group Ltd.

      14.18 % 

Sun Hung Kai Properties Ltd.

      6.46   

Hutchison Whampoa Ltd.

      6.42   

Cheung Kong (Holdings) Ltd.

      6.18   

Hong Kong Exchanges and Clearing Ltd.

      4.82   

CLP Holdings Ltd.

      4.28   

Hong Kong and China Gas Co. Ltd. (The)

      4.08   

Power Assets Holdings Ltd.

      3.54   

Wharf (Holdings) Ltd. (The)

      3.48   

BOC Hong Kong (Holdings) Ltd.

      3.46   
  

 

 

  

TOTAL

      56.90 % 
  

 

 

  
 

 

6    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Fund Performance Overview

iSHARES® MSCI JAPAN SMALL CAP INDEX FUND

Performance as of February 28, 2013

 

Average Annual Total Returns
Year Ended 2/28/13   Five Years Ended 2/28/13   Inception to 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
5.77%   5.76%   6.01%   1.80%   1.83%   2.08%   1.38%   1.29%   1.68%
Cumulative Total Returns
Year Ended 2/28/13   Five Years Ended 2/28/13   Inception to 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
5.77%   5.76%   6.01%   9.31%   9.49%   10.83%   7.36%   6.87%   9.02%

Total returns for the period since inception are calculated from the inception date of the Fund (12/20/07). “Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

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 (12/21/07), 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.

 

FUND PERFORMANCE OVERVIEWS

      7   

Table of Contents

Fund Performance Overview (Continued)

iSHARES® MSCI JAPAN SMALL CAP INDEX FUND

 

The iShares MSCI Japan Small Cap Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI Japan Small Cap IndexSM (the “Index”). The Index targets 40% of the eligible small-cap universe within each industry group in the MSCI Japan Index, which consists of stocks traded primarily on the Tokyo Stock Exchange. 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 February 28, 2013, the total return for the Fund was 11.68%, net of fees, while the total return for the Index was 11.97%.

 

PORTFOLIO ALLOCATION

As of 2/28/13

 

Sector    Percentage of
Net Assets

Industrial

      25.02 % 

Consumer Cyclical

      23.17   

Financial

      19.60   

Consumer Non-Cyclical

      13.73   

Basic Materials

      9.98   

Technology

      4.19   

Communications

      3.59   

Utilities

      0.20   

Energy

      0.19   

Diversified

      0.06   

Short-Term and Other Net Assets

      0.27   
  

 

 

  

TOTAL

      100.00 % 
  

 

 

  

TEN LARGEST FUND HOLDINGS

As of 2/28/13

 

Security    Percentage of
Net Assets

United Urban Investment Corp.

      0.67 % 

Advance Residence Investment Corp.

      0.64   

Anritsu Corp.

      0.63   

Yokohama Rubber Co. Ltd. (The)

      0.60   

Tokyo Tatemono Co. Ltd.

      0.60   

Nippon Kayaku Co. Ltd.

      0.50   

Misumi Group Inc.

      0.49   

Kawasaki Kisen Kaisha Ltd.

      0.48   

Dowa Holdings Co. Ltd.

      0.47   

Sawai Pharmaceutical Co. Ltd.

      0.46   
  

 

 

  

TOTAL

      5.54 % 
  

 

 

  
 

 

8    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Fund Performance Overview

iSHARES® MSCI MALAYSIA INDEX FUND

Performance as of February 28, 2013

 

Average Annual Total Returns
Year Ended 2/28/13   Five Years Ended 2/28/13   Ten Years Ended 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
0.97%   1.32%   1.49%   6.02%   6.52%   6.53%   14.19%   14.46%   14.90%
Cumulative Total Returns
Year Ended 2/28/13   Five Years Ended 2/28/13   Ten Years Ended 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
0.97%   1.32%   1.49%   33.93%   37.13%   37.18%   276.83%   286.08%   300.91%

“Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

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. As the Fund has a NAV which is determined prior to the opening of the regular trading day on the primary stock exchange on which it is listed, the market return is calculated using the midpoint of the bid/ask spread as of the opening of regular trading on the exchange. 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.

 

FUND PERFORMANCE OVERVIEWS

      9   

Table of Contents

Fund Performance Overview (Continued)

iSHARES® MSCI MALAYSIA INDEX FUND

 

The iShares MSCI Malaysia Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI Malaysia IndexSM (the “Index”). The Index consists of stocks traded primarily on the Kuala Lumpur Stock Exchange. 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 February 28, 2013, the total return for the Fund was 1.61%, net of fees, while the total return for the Index was 1.87%.

 

PORTFOLIO ALLOCATION

As of 2/28/13

 

Sector    Percentage of
Net Assets

Financial

      30.84 % 

Consumer Non-Cyclical

      12.91   

Communications

      12.50   

Consumer Cyclical

      11.45   

Diversified

      10.06   

Utilities

      8.26   

Industrial

      5.78   

Basic Materials

      4.39   

Energy

      3.53   

Short-Term and Other Net Assets

      0.28   
  

 

 

  

TOTAL

      100.00 % 
  

 

 

  

TEN LARGEST FUND HOLDINGS

As of 2/28/13

 

Security    Percentage of
Net Assets

Malayan Banking Bhd

      9.54 % 

CIMB Group Holdings Bhd

      8.59   

Sime Darby Bhd

      6.15   

Genting Bhd

      4.80   

Tenaga Nasional Bhd

      4.74   

Petronas Chemicals Group Bhd

      4.39   

Public Bank Bhd Foreign

      4.21   

Axiata Group Bhd

      4.04   

IOI Corp. Bhd

      3.89   

Maxis Communications Bhd

      3.54   
  

 

 

  

TOTAL

      53.89 % 
  

 

 

  
 

 

10    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Fund Performance Overview

iSHARES® MSCI PACIFIC EX-JAPAN INDEX FUND

Performance as of February 28, 2013

 

Average Annual Total Returns
Year Ended 2/28/13   Five Years Ended 2/28/13   Ten Years Ended 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
16.46%   17.33%   17.00%   4.82%   5.30%   5.02%   15.69%   15.47%   15.75%
Cumulative Total Returns
Year Ended 2/28/13   Five Years Ended 2/28/13   Ten Years Ended 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
16.46%   17.33%   17.00%   26.55%   29.49%   27.76%   329.47%   321.24%   331.64%

“Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

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. 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.

 

FUND PERFORMANCE OVERVIEWS

      11   

Table of Contents

Fund Performance Overview (Continued)

iSHARES® MSCI PACIFIC EX-JAPAN INDEX FUND

 

The iShares MSCI Pacific ex-Japan Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI Pacific ex-Japan IndexSM (the “Index”). The Index consists of stocks from Australia, Hong Kong, New Zealand and Singapore. 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 February 28, 2013, the total return for the Fund was 18.10%, net of fees, while the total return for the Index was 18.46%.

 

PORTFOLIO ALLOCATION

As of 2/28/13

 

Sector    Percentage of
Net Assets

Financial

      49.88 % 

Basic Materials

      12.13   

Consumer Non-Cyclical

      8.87   

Consumer Cyclical

      8.08   

Industrial

      5.60   

Utilities

      4.13   

Diversified

      3.91   

Communications

      3.46   

Energy

      2.87   

Technology

      0.43   

Short-Term and Other Net Assets

      0.64   
  

 

 

  

TOTAL

      100.00 % 
  

 

 

  

TEN LARGEST FUND HOLDINGS

As of 2/28/13

 

Security    Percentage of
Net Assets

BHP Billiton Ltd. (Australia)

      7.33 % 

Commonwealth Bank of Australia (Australia)

      6.67   

Westpac Banking Corp. (Australia)

      5.85   

Australia and New Zealand Banking Group Ltd. (Australia)

      4.82   

National Australia Bank Ltd. (Australia)

      4.32   

AIA Group Ltd. (Hong Kong)

      3.13   

Woolworths Ltd. (Australia)

      2.65   

Wesfarmers Ltd. (Australia)

      2.54   

CSL Ltd. (Australia)

      1.85   

Rio Tinto Ltd. (Australia)

      1.80   
  

 

 

  

TOTAL

      40.96 % 
  

 

 

  
 

 

12    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Fund Performance Overview

iSHARES® MSCI SINGAPORE INDEX FUND

Performance as of February 28, 2013

 

Average Annual Total Returns
Year Ended 2/28/13   Five Years Ended 2/28/13   Ten Years Ended 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
10.43%   10.31%   10.87%   5.93%   6.39%   6.07%   16.75%   16.75%   16.67%
Cumulative Total Returns
Year Ended 2/28/13   Five Years Ended 2/28/13   Ten Years Ended 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
10.43%   10.31%   10.87%   33.38%   36.31%   34.29%   370.68%   370.31%   367.46%

“Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

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. 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 MSCI Singapore Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI Singapore IndexSM (the “Index”). The Index consists of stocks traded primarily on the Singapore Stock Exchange. 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 February 28, 2013, the total return for the Fund was 7.65%, net of fees, while the total return for the Index was 7.94%.

 

PORTFOLIO ALLOCATION

As of 2/28/13

 

Sector    Percentage of
Net Assets

Financial

      47.15 % 

Communications

      14.28   

Consumer Cyclical

      11.26   

Industrial

      9.72   

Consumer Non-Cyclical

      8.70   

Diversified

      8.65   

Short-Term and Other Net Assets

      0.24   
  

 

 

  

TOTAL

      100.00 % 
  

 

 

  

TEN LARGEST FUND HOLDINGS

As of 2/28/13

 

Security    Percentage of
Net Assets

Singapore Telecommunications Ltd.

      10.71 % 

DBS Group Holdings Ltd.

      10.66   

Oversea-Chinese Banking Corp. Ltd.

      10.09   

United Overseas Bank Ltd.

      9.28   

Keppel Corp. Ltd.

      6.84   

CapitaLand Ltd.

      3.91   

Genting Singapore PLC

      3.70   

Fraser and Neave Ltd.

      3.34   

Jardine Cycle & Carriage Ltd.

      3.03   

Singapore Exchange Ltd.

      2.68   
  

 

 

  

TOTAL

      64.24 % 
  

 

 

  
 

 

FUND PERFORMANCE OVERVIEWS

      13   

Table of Contents

Fund Performance Overview

iSHARES® MSCI SOUTH KOREA CAPPED INDEX FUND

Performance as of February 28, 2013

 

Average Annual Total Returns
Year Ended 2/28/13   Five Years Ended 2/28/13   Ten Years Ended 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
4.31%   3.66%   5.65%   2.25%   2.68%   2.86%   14.88%   14.56%   16.02%
Cumulative Total Returns
Year Ended 2/28/13   Five Years Ended 2/28/13   Ten Years Ended 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
4.31%   3.66%   5.65%   11.78%   14.12%   15.16%   300.29%   289.28%   341.77%

Index performance through February 11, 2013 reflects the performance of the MSCI Korea IndexSM. Index performance beginning on February 12, 2013 reflects the performance of the MSCI Korea 25/50 Index.

“Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

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. As the Fund has a NAV which is determined prior to the opening of the regular trading day on the primary stock exchange on which it is listed, the market return is calculated using the midpoint of the bid/ask spread as of the opening of regular trading on the exchange. 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.

 

14    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Fund Performance Overview (Continued)

iSHARES® MSCI SOUTH KOREA CAPPED INDEX FUND

 

The iShares MSCI South Korea Capped Index Fund (the “Fund”), formerly the iShares MSCI South Korea Index Fund, seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI Korea 25/50 Index (the “Index”). The Index is a free-float adjusted market capitalization-weighted index and consists of stocks traded primarily on the Stock Market Division of the Korean Exchange. 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 February 28, 2013, the total return for the Fund was 11.98%, net of fees, while the total return for the Index was 13.20%*.

 

*

Index performance through February 11, 2013 reflects the performance of the MSCI Korea IndexSM. Index performance beginning on February 12, 2013 reflects the performance of the MSCI Korea 25/50 Index.

 

PORTFOLIO ALLOCATION

As of 2/28/13

 

Sector    Percentage of
Net Assets

Technology

      25.44 % 

Consumer Cyclical

      19.92   

Financial

      14.20   

Industrial

      13.73   

Basic Materials

      9.18   

Consumer Non-Cyclical

      5.93   

Communications

      4.49   

Energy

      3.93   

Utilities

      1.70   

Diversified

      0.69   

Short-Term and Other Net Assets

      0.79   
  

 

 

  

TOTAL

      100.00 % 
  

 

 

  

TEN LARGEST FUND HOLDINGS

As of 2/28/13

 

Security    Percentage of
Net Assets

Samsung Electronics Co. Ltd.

      21.90 % 

Hyundai Motor Co.

      5.30   

POSCO

      3.68   

Hyundai Mobis Co. Ltd.

      3.42   

Shinhan Financial Group Co. Ltd.

      2.50   

KB Financial Group Inc.

      2.42   

Kia Motors Corp.

      2.38   

SK Hynix Inc.

      2.24   

LG Chem Ltd.

      2.20   

NHN Corp.

      1.77   
  

 

 

  

TOTAL

      47.81 % 
  

 

 

  
 

 

FUND PERFORMANCE OVERVIEWS

      15   

Table of Contents

Fund Performance Overview

iSHARES® MSCI TAIWAN INDEX FUND

Performance as of February 28, 2013

 

Average Annual Total Returns
Year Ended 2/28/13   Five Years Ended 2/28/13   Ten Years Ended 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
0.03%   1.26%   0.28%   0.66%   1.00%   1.11%   8.18%   8.38%   8.95%
Cumulative Total Returns
Year Ended 2/28/13   Five Years Ended 2/28/13   Ten Years Ended 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
0.03%   1.26%   0.28%   3.32%   5.10%   5.69%   119.61%   123.68%   135.57%

“Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

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. As the Fund has a NAV which is determined prior to the opening of the regular trading day on the primary stock exchange on which it is listed, the market return is calculated using the midpoint of the bid/ask spread as of the opening of regular trading on the exchange. 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 MSCI Taiwan Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI Taiwan IndexSM (the “Index”). The Index consists of stocks traded primarily on the Taiwan Stock Exchange. 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 February 28, 2013, the total return for the Fund was 9.33%, net of fees, while the total return for the Index was 9.53%.

 

PORTFOLIO ALLOCATION

As of 2/28/13

 

Sector    Percentage of
Net Assets

Technology

      37.63 % 

Industrial

      19.05   

Financial

      16.17   

Basic Materials

      10.70   

Communications

      6.80   

Consumer Cyclical

      6.40   

Consumer Non-Cyclical

      2.27   

Energy

      0.77   

Short-Term and Other Net Assets

      0.21   
  

 

 

  

TOTAL

      100.00 % 
  

 

 

  

TEN LARGEST FUND HOLDINGS

As of 2/28/13

 

Security    Percentage of
Net Assets

Taiwan Semiconductor Manufacturing Co. Ltd.

      20.91 % 

Hon Hai Precision Industry Co. Ltd.

      6.64   

MediaTek Inc.

      3.11   

Chunghwa Telecom Co. Ltd.

      2.88   

China Steel Corp.

      2.49   

Formosa Plastics Corp.

      2.44   

Nan Ya Plastics Corp.

      2.21   

Cathay Financial Holding Co. Ltd.

      2.16   

ASUSTeK Computer Inc.

      1.99   

Formosa Chemicals & Fibre Corp.

      1.89   
  

 

 

  

TOTAL

      46.72 % 
  

 

 

  
 

 

16    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Fund Performance Overview

iSHARES® MSCI THAILAND CAPPED INVESTABLE MARKET INDEX FUND

Performance as of February 28, 2013

 

Average Annual Total Returns   Cumulative Total Returns
Year Ended 2/28/13   Inception to 2/28/13   Inception to 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
27.45%   27.83%   27.77%   15.79%   15.69%   16.30%   105.98%   105.13%   110.52%

Index performance through February 11, 2013 reflects the performance of the MSCI Thailand Investable Market IndexSM. Index performance beginning on February 12, 2013 reflects the performance of the MSCI Thailand IMI 25/50 Index.

Total returns for the period since inception are calculated from the inception date of the Fund (3/26/08). “Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

Certain sectors and markets performed exceptionally well based on market conditions during the six-month period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.

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 (3/28/08), 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.

 

FUND PERFORMANCE OVERVIEWS

      17   

Table of Contents

Fund Performance Overview (Continued)

iSHARES® MSCI THAILAND CAPPED INVESTABLE MARKET INDEX FUND

 

The iShares MSCI Thailand Capped Investable Market Index Fund (the “Fund”), formerly the iShares MSCI Thailand Investable Market Index Fund, seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI Thailand IMI 25/50 Index (the “Index”). The Index is a free-float adjusted market capitalization-weighted index and consists of stocks traded primarily on the Stock Exchange of Thailand (SET). 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 February 28, 2013, the total return for the Fund was 28.63%, net of fees, while the total return for the Index was 28.82%*.

 

*

Index performance through February 11, 2013 reflects the performance of the MSCI Thailand Investable Market IndexSM. Index performance beginning on February 12, 2013 reflects the performance of the MSCI Thailand IMI 25/50 Index.

 

PORTFOLIO ALLOCATION

As of 2/28/13

 

Sector    Percentage of
Net Assets

Financial

      39.83 % 

Energy

      16.05   

Consumer Cyclical

      9.34   

Communications

      9.27   

Consumer Non-Cyclical

      6.70   

Industrial

      6.08   

Basic Materials

      6.01   

Diversified

      4.50   

Utilities

      1.74   

Technology

      0.29   

Short-Term and Other Net Assets

      0.19   
  

 

 

  

TOTAL

      100.00 % 
  

 

 

  

TEN LARGEST FUND HOLDINGS

As of 2/28/13

 

Security    Percentage of
Net Assets

Siam Commercial Bank PCL NVDR

      7.61 % 

PTT PCL NVDR

      7.32   

Kasikornbank PCL Foreign

      6.54   

Advanced Information Service PCL NVDR

      5.82   

CP All PCL NVDR

      5.05   

PTT Exploration & Production PCL NVDR

      5.03   

Bangkok Bank PCL Foreign

      5.02   

Kasikornbank PCL NVDR

      3.93   

Siam Cement PCL Foreign

      3.38   

Bangkok Bank PCL NVDR

      3.24   
  

 

 

  

TOTAL

      52.94 % 
  

 

 

  
 

 

18    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

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 September 1, 2012 to February 28, 2013.

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 Index Fund    Beginning
Account Value
(9/1/12)		      Ending
Account Value
(2/28/13)		      Annualized
Expense Ratio		     Expenses Paid
During Period a		  

Australia

           

Actual

    $ 1,000.00       $ 1,199.60         0.51 %    $ 2.78   

Hypothetical (5% return before expenses)

      1,000.00         1,022.30         0.51        2.56   

Hong Kong

           

Actual

      1,000.00         1,195.90         0.51        2.78   

Hypothetical (5% return before expenses)

      1,000.00         1,022.30         0.51        2.56   

Japan Small Cap

           

Actual

      1,000.00         1,116.80         0.51        2.68   

Hypothetical (5% return before expenses)

      1,000.00         1,022.30         0.51        2.56   

Malaysia

           

Actual

      1,000.00         1,016.10         0.52        2.60   

Hypothetical (5% return before expenses)

      1,000.00         1,022.20         0.52        2.61   

 

SHAREHOLDER EXPENSES

      19   

Table of Contents

Shareholder Expenses (Unaudited) (Continued)

iSHARES®, INC.

 

iShares Index Fund    Beginning
Account Value
(9/1/12)		      Ending
Account Value
(2/28/13)		      Annualized
Expense Ratio		     Expenses Paid
During Period a		  

Pacific ex-Japan

           

Actual

    $ 1,000.00       $ 1,181.00         0.50 %    $ 2.70   

Hypothetical (5% return before expenses)

      1,000.00         1,022.30         0.50        2.51   

Singapore

           

Actual

      1,000.00         1,076.50         0.51        2.63   

Hypothetical (5% return before expenses)

      1,000.00         1,022.30         0.51        2.56   

South Korea Capped

           

Actual

      1,000.00         1,119.80         0.60        3.15   

Hypothetical (5% return before expenses)

      1,000.00         1,021.80         0.60        3.01   

Taiwan

           

Actual

      1,000.00         1,093.30         0.60        3.11   

Hypothetical (5% return before expenses)

      1,000.00         1,021.80         0.60        3.01   

Thailand Capped Investable Market

           

Actual

      1,000.00         1,286.30         0.60        3.40   

Hypothetical (5% return before expenses)

      1,000.00         1,021.80         0.60        3.01   

 

a 

Expenses 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 (181 days) and divided by the number of days in the year (365 days).

 

 

20    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited)

iSHARES® MSCI AUSTRALIA INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

COMMON STOCKS — 99.08%

  

AIRLINES — 0.18%

  

Qantas Airways Ltd.a

     2,773,316      $ 4,670,455   
   

 

 

  
      4,670,455   

BANKS — 33.88%

  

Australia and New Zealand Banking Group Ltd.

     6,774,222        199,176,348   

Bendigo and Adelaide Bank Ltd.

     1,015,664        10,325,075   

Commonwealth Bank of Australia

     4,009,798        276,145,408   

National Australia Bank Ltd.

     5,786,222        178,894,068   

Westpac Banking Corp.

     7,678,242        241,870,664   
   

 

 

  
      906,411,563   

BEVERAGES — 1.12%

  

Coca-Cola Amatil Ltd.

     1,424,202        21,126,808   

Treasury Wine Estates Ltd.

     1,611,922        8,746,087   
   

 

 

  
      29,872,895   

BIOTECHNOLOGY — 2.87%

  

CSL Ltd.

     1,249,820        76,770,192   
   

 

 

  
      76,770,192   

BUILDING MATERIALS — 0.79%

  

Boral Ltd.

     1,909,310        10,105,572   

James Hardie Industries SE

     1,095,692        10,992,803   
   

 

 

  
      21,098,375   

CHEMICALS — 0.50%

  

Incitec Pivot Ltd.

     4,058,704        13,420,967   
   

 

 

  
      13,420,967   

COAL — 0.12%

  

Whitehaven Coal Ltd.

     1,139,164        3,265,413   
   

 

 

  
      3,265,413   

COMMERCIAL SERVICES — 2.07%

  

Brambles Ltd.

     3,877,900        34,737,500   

Transurban Group

     3,278,184        20,673,211   
   

 

 

  
      55,410,711   

COMPUTERS — 0.43%

  

Computershare Ltd.

     1,107,548        11,542,616   
   

 

 

  
      11,542,616   

DIVERSIFIED FINANCIAL SERVICES — 1.77%

  

ASX Ltd.

     436,202        16,277,177   

Macquarie Group Ltd.

     802,750        30,998,873   
   

 

 

  
      47,276,050   
Security   Shares     Value  
   

ELECTRIC — 2.29%

  

AGL Energy Ltd.

     1,370,850      $ 22,370,318   

Origin Energy Ltd.

     2,723,916        33,937,371   

SP AusNet

     4,158,986        5,066,736   
   

 

 

  
      61,374,425   

ENGINEERING & CONSTRUCTION — 0.92%

  

Leighton Holdings Ltd.

     377,910        9,134,363   

Sydney Airport

     461,396        1,497,362   

WorleyParsons Ltd.

     514,254        14,025,095   
   

 

 

  
      24,656,820   

ENTERTAINMENT — 0.64%

  

Tabcorp Holdings Ltd.

     1,829,282        5,955,273   

Tatts Group Ltd.

     3,451,578        11,272,034   
   

 

 

  
      17,227,307   

FOOD — 4.45%

  

Metcash Ltd.

     2,193,854        9,163,508   

Woolworths Ltd.

     3,070,704        109,807,106   
   

 

 

  
      118,970,614   

HEALTH CARE — PRODUCTS — 0.39%

  

Cochlear Ltd.

     142,272        10,317,914   
   

 

 

  
      10,317,914   

HEALTH CARE — SERVICES — 0.88%

  

Ramsay Health Care Ltd.

     328,016        10,786,101   

Sonic Healthcare Ltd.

     936,624        12,877,608   
   

 

 

  
      23,663,709   

INSURANCE — 5.57%

  

AMP Ltd.

     7,302,308        40,967,042   

Insurance Australia Group Ltd.

     5,180,578        30,177,579   

QBE Insurance Group Ltd.

     2,982,278        40,850,572   

Suncorp Group Ltd.

     3,206,060        36,990,437   
   

 

 

  
      148,985,630   

IRON & STEEL — 0.63%

  

Fortescue Metals Group Ltd.

     3,491,592        16,871,721   
   

 

 

  
      16,871,721   

LEISURE TIME — 0.17%

  

Flight Centre Ltd.b

     137,332        4,569,293   
   

 

 

  
      4,569,293   

LODGING — 0.73%

  

Crown Ltd.

     998,374        12,275,245   

Echo Entertainment Group Ltd.

     1,851,018        7,125,124   
   

 

 

  
      19,400,369   
 

 

SCHEDULES OF INVESTMENTS

      21   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI AUSTRALIA INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

MANUFACTURING — 0.38%

  

ALS Ltd.

     850,668      $ 10,197,903   
   

 

 

  
      10,197,903   

METAL FABRICATE & HARDWARE — 0.17%

  

Sims Metal Management Ltd.

     409,526        4,565,657   
   

 

 

  
      4,565,657   

MINING — 17.65%

  

Alumina Ltd.a

     6,309,368        7,977,131   

BHP Billiton Ltd.

     8,003,294        303,728,301   

Iluka Resources Ltd.

     1,043,328        11,236,486   

Newcrest Mining Ltd.

     1,908,322        44,269,587   

Orica Ltd.

     910,936        25,468,506   

OZ Minerals Ltd.

     755,820        4,921,182   

Rio Tinto Ltd.

     1,085,812        74,532,780   
   

 

 

  
      472,133,973   

OIL & GAS — 3.84%

  

Caltex Australia Ltd.

     336,414        6,870,856   

Santos Ltd.

     2,394,912        32,878,519   

Woodside Petroleum Ltd.

     1,642,550        63,058,520   
   

 

 

  
      102,807,895   

PACKAGING & CONTAINERS — 1.06%

  

Amcor Ltd.

     3,006,978        28,321,222   
   

 

 

  
      28,321,222   

PIPELINES — 0.48%

  

APA Group

     2,050,594        12,910,668   
   

 

 

  
      12,910,668   

REAL ESTATE — 0.55%

  

Lend Lease Group

     1,359,982        14,827,798   
   

 

 

  
      14,827,798   

REAL ESTATE INVESTMENT TRUSTS — 6.96%

  

CFS Retail Property Trust Group

     4,947,410        10,585,664   

Dexus Property Group

     11,455,366        12,782,899   

Federation Centres

     3,377,478        8,471,348   

Goodman Group

     4,240,496        20,186,616   

GPT Group

     3,522,220        14,171,080   

Mirvac Group

     8,536,320        14,332,054   

Stockland Corp. Ltd.

     5,488,834        21,128,168   

Westfield Group

     5,325,814        61,065,782   

Westfield Retail Trust

     7,230,184        23,538,044   
   

 

 

  
      186,261,655   
Security   Shares     Value  
   

RETAIL — 4.06%

  

Harvey Norman Holdings Ltd.b

     1,317,004      $ 3,357,224   

Wesfarmers Ltd.

     2,508,532        105,369,536   
   

 

 

  
      108,726,760   

TELECOMMUNICATIONS — 1.91%

  

Telstra Corp. Ltd.

     10,852,192        50,994,585   
   

 

 

  
      50,994,585   

TRANSPORTATION — 1.62%

  

Asciano Ltd.

     2,430,480        13,884,177   

Aurizon Holdings Ltd.

     4,527,016        18,677,166   

Toll Holdings Ltd.

     1,702,324        10,770,221   
   

 

 

  
      43,331,564   
   

 

 

  

TOTAL COMMON STOCKS

    

(Cost: $2,344,522,414)

       2,650,856,719   

INVESTMENT COMPANIES — 0.00%

  

REAL ESTATE — 0.00%

  

BGP Holdings PLCa,c

     18,888,372        247   
   

 

 

  
      247   
   

 

 

  

TOTAL INVESTMENT COMPANIES

  

  

(Cost: $0)

       247   

SHORT-TERM INVESTMENTS — 0.17%

  

MONEY MARKET FUNDS — 0.17%

  

BlackRock Cash Funds: Institutional, SL Agency Shares

    

0.21%d,e,f

     4,010,922        4,010,922   

BlackRock Cash Funds: Prime, SL Agency Shares

    

0.18%d,e,f

     290,404        290,404   

BlackRock Cash Funds: Treasury, SL Agency Shares

    

0.04%d,e

     270,237        270,237   
   

 

 

  
      4,571,563   
   

 

 

  

TOTAL SHORT-TERM INVESTMENTS

  

  

(Cost: $4,571,563)

       4,571,563   
   

 

 

  
 

 

22    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI AUSTRALIA INDEX FUND

February 28, 2013

 

          Value  
   

TOTAL INVESTMENTS
IN SECURITIES — 99.25%

   

(Cost: $2,349,093,977)

   $ 2,655,428,529   

Other Assets, Less Liabilities — 0.75%

     19,986,467   
   

 

 

  

NET ASSETS — 100.00%

   $ 2,675,414,996   
   

 

 

  

 

a 

Non-income earning security.

b 

All or a portion of this security represents a security on loan. See Note 5.

c 

Security valued using Level 3 inputs in accordance with management’s fair valuation policy. See Note 1.

d 

Affiliated issuer. See Note 2.

e 

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

f 

All or a portion of this security represents an investment of securities lending collateral. See Note 5.

Financial futures contracts purchased as of February 28, 2013 were as follows:

 

Number of

Contracts

      Issue
(Expiration)		   Exchange   Notional
Value		     Net
Unrealized
Appreciation
(Depreciation)		  
  170       ASX SPI 200 Index
(Mar. 2013)		   Sydney Futures     $22,124,517        $865,094   
                              

See notes to financial statements.

 

 

SCHEDULES OF INVESTMENTS

      23   

Table of Contents

Schedule of Investments (Unaudited)

iSHARES® MSCI HONG KONG INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

COMMON STOCKS — 99.81%

    

AIRLINES — 0.62%

  

  

Cathay Pacific Airways Ltd.a

     11,685,000      $ 21,818,449   
   

 

 

  
      21,818,449   

APPAREL — 0.67%

  

  

Yue Yuen Industrial (Holdings) Ltd.a

     7,011,000        23,686,880   
   

 

 

  
      23,686,880   

BANKS — 8.51%

  

  

Bank of East Asia Ltd. (The)a

     11,685,010        47,765,568   

BOC Hong Kong (Holdings) Ltd.

     36,223,500        122,148,659   

Hang Seng Bank Ltd.a

     7,244,700        117,150,606   

Wing Hang Bank Ltd.a

     1,168,500        12,966,005   
   

 

 

  
      300,030,838   

DISTRIBUTION & WHOLESALE — 2.13%

  

  

Li & Fung Ltd.a

     56,088,000        75,219,405   
   

 

 

  
      75,219,405   

DIVERSIFIED FINANCIAL SERVICES — 4.82%

  

  

Hong Kong Exchanges and Clearing Ltd.a

     9,441,000        169,831,718   
   

 

 

  
      169,831,718   

ELECTRIC — 7.82%

  

  

CLP Holdings Ltd.a

     17,527,700        150,869,968   

Power Assets Holdings Ltd.

     14,022,000        125,034,179   
   

 

 

  
      275,904,147   

ENGINEERING & CONSTRUCTION — 0.87%

  

  

Cheung Kong Infrastructure Holdings Ltd.

     4,674,000        30,648,291   
   

 

 

  
      30,648,291   

FOOD — 0.70%

  

  

First Pacific Co. Ltd.

     18,696,000        24,735,612   
   

 

 

  
      24,735,612   

GAS — 4.08%

  

  

Hong Kong and China Gas Co. Ltd. (The)

     51,414,958        143,871,847   
   

 

 

  
      143,871,847   

HOLDING COMPANIES — DIVERSIFIED — 13.23%

  

  

Hutchison Whampoa Ltd.a

     21,033,800        226,616,117   

NWS Holdings Ltd.

     14,022,000        26,688,423   

Swire Pacific Ltd. Class A

     7,011,000        90,498,346   

Wharf (Holdings) Ltd. (The)

     14,022,150        122,594,476   
   

 

 

  
      466,397,362   
Security   Shares     Value  
   

INSURANCE — 14.18%

  

AIA Group Ltd.

     115,447,800      $ 500,209,041   
   

 

 

  
      500,209,041   

LODGING — 9.39%

  

  

Galaxy Entertainment Group Ltd.b

     18,696,000        78,474,090   

MGM China Holdings Ltd.a

     9,348,000        22,589,930   

Sands China Ltd.a

     23,370,000        111,352,444   

Shangri-La Asia Ltd.

     14,022,000        32,691,510   

SJM Holdings Ltd.

     18,696,000        46,722,823   

Wynn Macau Ltd.a,b

     14,956,800        39,441,970   
   

 

 

  
      331,272,767   

REAL ESTATE — 25.53%

  

  

Cheung Kong (Holdings) Ltd.a

     14,022,000        218,063,947   

Hang Lung Properties Ltd.

     21,033,000        81,502,756   

Henderson Land Development Co. Ltd.a

     9,348,332        65,035,753   

Hopewell Holdings Ltd.a

     5,842,742        25,541,301   

Hysan Development Co. Ltd.a

     7,011,000        36,072,768   

Kerry Properties Ltd.a

     7,011,000        36,072,767   

New World Development Co. Ltd.a

     35,055,800        64,552,741   

Sino Land Co. Ltd.a

     28,044,000        50,990,077   

Sun Hung Kai Properties Ltd.

     14,714,000        227,687,189   

Swire Properties Ltd.

     11,685,000        43,697,170   

Wheelock and Co. Ltd.

     9,348,357        51,052,299   
   

 

 

  
      900,268,768   

REAL ESTATE INVESTMENT TRUSTS — 3.36%

  

  

Link REIT (The)a

     22,201,500        118,667,953   
   

 

 

  
      118,667,953   

SEMICONDUCTORS — 0.70%

  

  

ASM Pacific Technology Ltd.a

     1,869,600        24,639,177   
   

 

 

  
      24,639,177   

TELECOMMUNICATIONS — 1.09%

  

  

HKT Trust and HKT Ltd.

     21,033,000        20,558,765   

PCCW Ltd.a

     37,392,000        17,792,282   
   

 

 

  
      38,351,047   

TRANSPORTATION — 2.11%

  

  

MTR Corp. Ltd.

     14,022,083        57,861,423   

Orient Overseas International Ltd.a

     2,337,200        16,470,722   
   

 

 

  
      74,332,145   
   

 

 

  

TOTAL COMMON STOCKS

    

(Cost: $3,152,798,725)

  

     3,519,885,447   
 

 

24    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI HONG KONG INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

SHORT-TERM INVESTMENTS — 2.21%

  

  

MONEY MARKET FUNDS — 2.21%

  

  

BlackRock Cash Funds: Institutional,
SL Agency Shares

   

  

0.21%c,d,e

     67,678,969      $ 67,678,969   

BlackRock Cash Funds: Prime,
SL Agency Shares

   

  

0.18%c,d,e

     4,900,181        4,900,181   

BlackRock Cash Funds: Treasury,
SL Agency Shares

   

  

0.04%c,d

     5,320,096        5,320,096   
   

 

 

  
      77,899,246   
   

 

 

  

TOTAL SHORT-TERM INVESTMENTS

  

  

(Cost: $77,899,246)

  

     77,899,246   
   

 

 

  

TOTAL INVESTMENTS
IN SECURITIES — 102.02%

   

  

(Cost: $3,230,697,971)

  

     3,597,784,693   

Other Assets, Less Liabilities — (2.02)%

  

     (71,207,153 ) 
   

 

 

  

NET ASSETS — 100.00%

  

   $ 3,526,577,540   
   

 

 

  

 

a 

All or a portion of this security represents a security on loan. See Note 5.

b 

Non-income earning security.

c 

Affiliated issuer. See Note 2.

d 

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

e 

All or a portion of this security represents an investment of securities lending collateral. See Note 5.

Financial futures contracts purchased as of February 28, 2013 were as follows:

 

Number of
Contracts		      Issue
(Expiration)		   Exchange   Notional
Value		     Net
Unrealized
Appreciation
(Depreciation)		  
  41       Hang Seng Index (Mar. 2013)   Hong Kong Futures     $6,072,664        $63,709   
                              

See notes to financial statements.

 

 

SCHEDULES OF INVESTMENTS

      25   

Table of Contents

Schedule of Investments (Unaudited)

iSHARES® MSCI JAPAN SMALL CAP INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

COMMON STOCKS — 99.73%

  

ADVERTISING — 0.31%

  

  

Asatsu-DK Inc.

     3,600      $ 91,697   

Moshi Moshi Hotline Inc.

     6,000        85,194   
   

 

 

  
      176,891   

AGRICULTURE — 0.23%

  

  

Hokuto Corp.

     3,600        68,480   

Sakata Seed Corp.

     4,800        63,785   
   

 

 

  
      132,265   

AIRLINES — 0.02%

  

  

Skymark Airlines Inc.a

     3,600        13,462   
   

 

 

  
      13,462   

APPAREL — 1.10%

  

  

Atsugi Co. Ltd.

     24,000        29,655   

Daidoh Ltd.

     3,600        26,143   

Descente Ltd.

     12,000        75,439   

Gunze Ltd.

     24,000        61,132   

Japan Wool Textile Co. Ltd. (The)

     12,000        85,324   

Nagaileben Co. Ltd.

     2,400        31,346   

Onward Holdings Co. Ltd.

     12,000        92,088   

Sanyo Shokai Ltd.

     12,000        34,858   

TSI Holdings Co. Ltd.

     10,800        55,370   

Wacoal Holdings Corp.

     12,000        125,905   
   

 

 

  
      617,260   

AUTO MANUFACTURERS — 0.48%

  

  

Kyokuto Kaihatsu Kogyo Co. Ltd.

     3,600        37,850   

Nissan Shatai Co. Ltd.

     12,000        146,976   

ShinMaywa Industries Ltd.

     12,000        87,925   
   

 

 

  
      272,751   

AUTO PARTS & EQUIPMENT — 4.21%

  

  

Aisan Industry Co. Ltd.

     3,600        35,118   

Akebono Brake Industry Co. Ltd.b

     9,600        42,558   

Calsonic Kansei Corp.

     24,000        108,736   

Exedy Corp.

     3,600        76,558   

FCC Co. Ltd.

     4,800        107,383   

Futaba Industrial Co. Ltd.a

     8,400        35,781   

Kayaba Industry Co. Ltd.

     24,000        102,493   

Keihin Corp.

     6,000        89,941   

Musashi Seimitsu Industry Co. Ltd.

     3,600        76,675   

Nidec-Tosok Corp.

     1,200        8,038   

Nifco Inc.

     6,000        123,824   
Security   Shares     Value  
   

Nippon Seiki Co. Ltd.

     4,000      $ 55,972   

Nissin Kogyo Co. Ltd.

     6,000        96,770   

Press Kogyo Co. Ltd.

     12,000        59,441   

Riken Corp.

     12,000        47,995   

Sanden Corp.

     12,000        47,995   

Sanoh Industrial Co. Ltd.

     3,600        25,129   

Showa Corp.

     7,200        77,026   

T.RAD Co. Ltd.

     12,000        31,736   

Tachi-S Co. Ltd.

     3,600        57,945   

Taiho Kogyo Co. Ltd.

     2,400        31,424   

Takata Corp.

     4,800        86,989   

Tokai Rika Co. Ltd.

     7,200        129,001   

Topre Corp.

     6,000        57,230   

Toyo Tire & Rubber Co. Ltd.

     24,000        99,371   

TPR Co. Ltd.

     2,400        31,346   

TS Tech Co. Ltd.

     6,000        147,041   

Unipres Corp.

     4,800        107,592   

Yokohama Rubber Co. Ltd. (The)

     36,000        339,085   

Yorozu Corp.

     2,400        38,006   
   

 

 

  
      2,374,199   

BANKS — 7.51%

  

  

77 Bank Ltd. (The)

     48,000        226,837   

Aichi Bank Ltd. (The)

     1,200        66,985   

Awa Bank Ltd. (The)

     24,000        143,334   

Bank of Nagoya Ltd. (The)

     24,000        94,169   

Bank of Saga Ltd. (The)

     24,000        57,750   

Bank of the Ryukyus Ltd.

     4,800        63,681   

Chiba Kogyo Bank Ltd. (The)a

     4,800        40,477   

Daishi Bank Ltd. (The)

     48,000        176,891   

Eighteenth Bank Ltd. (The)

     24,000        65,294   

Higashi-Nippon Bank Ltd. (The)

     24,000        62,953   

Higo Bank Ltd. (The)

     24,000        146,456   

Hokkoku Bank Ltd. (The)

     36,000        143,204   

Hokuetsu Bank Ltd. (The)

     36,000        83,893   

Hyakugo Bank Ltd. (The)

     36,000        159,983   

Hyakujushi Bank Ltd. (The)

     36,000        141,253   

Juroku Bank Ltd. (The)

     48,000        179,493   

Kagoshima Bank Ltd. (The)

     12,000        76,219   

Kansai Urban Banking Corp.

     36,000        46,824   

Keiyo Bank Ltd. (The)

     36,000        189,248   

Kiyo Holdings Inc.

     84,000        126,555   

Mie Bank Ltd. (The)

     12,000        27,964   

Minato Bank Ltd. (The)

     24,000        43,703   
 

 

26    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI JAPAN SMALL CAP INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Miyazaki Bank Ltd. (The)

     24,000      $ 70,236   

Musashino Bank Ltd. (The)

     3,600        127,791   

Nanto Bank Ltd. (The)

     36,000        160,763   

North Pacific Bank Ltd.a

     44,400        147,743   

Ogaki Kyoritsu Bank Ltd. (The)

     36,000        117,841   

Oita Bank Ltd. (The)

     24,000        87,665   

San-in Godo Bank Ltd. (The)

     24,000        200,824   

Senshu Ikeda Holdings Inc.

     27,600        148,082   

Shiga Bank Ltd. (The)

     36,000        209,928   

Tochigi Bank Ltd. (The)

     12,000        48,775   

Toho Bank Ltd. (The)

     24,000        74,138   

Tokyo Tomin Bank Ltd. (The)

     4,800        48,281   

TOMONY Holdings Inc.

     16,800        75,933   

Towa Bank Ltd. (The)

     36,000        40,581   

Tsukuba Bank Ltd. (The)

     10,800        43,781   

Yachiyo Bank Ltd. (The)

     2,400        59,519   

Yamagata Bank Ltd. (The)

     24,000        107,436   

Yamanashi Chuo Bank Ltd. (The)

     24,000        101,452   
   

 

 

  
      4,233,935   

BEVERAGES — 1.47%

  

  

Coca-Cola Central Japan Co. Ltd.

     2,400        33,297   

Dydo Drinco Inc.

     1,200        51,962   

ITO EN Ltd.

     7,200        146,482   

Kagome Co. Ltd.

     10,800        200,525   

KEY Coffee Inc.

     1,200        20,056   

Mikuni Coca-Cola Bottling Co. Ltd.

     3,600        38,669   

Sapporo Holdings Ltd.

     36,000        126,035   

Takara Holdings Inc.

     24,000        210,709   
   

 

 

  
      827,735   

BIOTECHNOLOGY — 0.28%

  

  

JCR Pharmaceuticals Co. Ltd.

     1,200        27,158   

OncoTherapy Science Inc.a

     24        53,692   

Takara Bio Inc.

     4,800        74,814   
   

 

 

  
      155,664   

BUILDING MATERIALS — 2.05%

  

  

Central Glass Co. Ltd.

     24,000        79,081   

Chofu Seisakusho Co. Ltd.

     2,400        50,726   

Cleanup Corp.

     2,400        16,649   

Endo Lighting Corp.

     1,200        35,053   

Fujitec Co. Ltd.

     12,000        98,071   

Nice Holdings Inc.

     12,000        30,696   

Nichias Corp.

     12,000        63,993   
Security   Shares     Value  
   

Nichiha Corp.

     2,400      $ 34,416   

Nippon Sheet Glass Co. Ltd.

     120,000        152,179   

Noritz Corp.

     3,600        67,700   

Okabe Co. Ltd.

     4,800        37,355   

Sankyo Tateyama Inc.a

     3,900        75,159   

Sanwa Holdings Corp.

     36,000        184,955   

Sumitomo Osaka Cement Co. Ltd.

     48,000        144,114   

Takara Standard Co. Ltd.

     12,000        87,145   
   

 

 

  
      1,157,292   

CHEMICALS — 6.51%

  

  

Adeka Corp.

     12,000        106,005   

Aica Kogyo Co. Ltd.

     7,200        120,416   

C. Uyemura & Co. Ltd.

     1,200        43,768   

Chugoku Marine Paints Ltd.

     12,000        65,554   

Dai Nippon Toryo Co. Ltd.

     12,000        21,981   

Dainichiseika Color & Chemicals Manufacturing Co. Ltd.

     12,000        57,099   

Daiso Co. Ltd.

     12,000        34,728   

DIC Corp.

     96,000        193,540   

Earth Chemical Co. Ltd.

     2,400        78,951   

Fujimi Inc.

     2,400        36,289   

Ishihara Sangyo Kaisha Ltd.a

     48,000        43,703   

Kinugawa Rubber Industrial Co. Ltd.

     2,000        9,733   

Kureha Corp.

     12,000        43,442   

Lintec Corp.

     6,000        105,354   

New Japan Chemical Co. Ltd.

     3,600        9,989   

Nihon Nohyaku Co. Ltd.

     12,000        75,829   

Nihon Parkerizing Co. Ltd.

     5,000        81,996   

Nippon Carbon Co. Ltd.

     12,000        24,192   

Nippon Kayaku Co. Ltd.

     24,000        280,425   

Nippon Paint Co. Ltd.

     24,000        228,138   

Nippon Shokubai Co. Ltd.

     15,000        140,147   

Nippon Soda Co. Ltd.

     24,000        110,557   

Nippon Synthetic Chemical Industry Co. Ltd. (The)

     12,000        95,339   

Nissan Chemical Industries Ltd.

     18,000        230,219   

NOF Corp.

     24,000        114,719   

S.T. Corp.

     1,200        12,955   

Sakai Chemical Industry Co. Ltd.

     12,000        36,679   

Sanyo Chemical Industries Ltd.

     6,000        32,647   

Stella Chemifa Corp.

     1,200        23,178   

Sumitomo Bakelite Co. Ltd.

     24,000        99,111   

Taiyo Holdings Co. Ltd.

     2,400        70,887   
 

 

SCHEDULES OF INVESTMENTS

      27   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI JAPAN SMALL CAP INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Takasago International Corp.

     12,000      $ 65,684   

Toagosei Co. Ltd.

     24,000        97,811   

Tokai Carbon Co. Ltd.

     24,000        83,503   

Tokuyama Corp.b

     48,000        121,223   

Tokyo Ohka Kogyo Co. Ltd.

     6,000        123,174   

Tosoh Corp.

     72,000        196,662   

Toyo Ink SC Holdings Co. Ltd.

     24,000        104,054   

Zeon Corp.

     24,000        251,810   
   

 

 

  
      3,671,491   

COAL — 0.08%

  

  

Mitsui Matsushima Co. Ltd.

     24,000        46,044   
   

 

 

  
      46,044   

COMMERCIAL SERVICES — 1.51%

  

  

AEON Delight Co. Ltd.

     2,400        42,688   

Duskin Co. Ltd.

     7,200        142,736   

Future Architect Inc.

     48        19,874   

GMO Payment Gateway Inc.

     737        14,770   

Kyodo Printing Co. Ltd.

     12,000        32,777   

Kyoritsu Maintenance Co. Ltd.

     1,200        32,049   

Meitec Corp.

     4,800        125,385   

Nichii Gakkan Co.

     6,000        57,555   

Nihon M&A Center Inc.

     1,200        43,507   

Nishio Rent All Co. Ltd.

     2,400        36,601   

Pasona Group Inc.

     36        17,052   

Pronexus Inc.

     3,600        22,163   

Sohgo Security Services Co. Ltd.

     8,400        113,445   

Temp Holdings Co. Ltd.

     3,600        54,706   

Toppan Forms Co. Ltd.

     7,200        62,588   

Weathernews Inc.

     1,200        30,709   
   

 

 

  
      848,605   

COMPUTERS — 1.53%

  

  

DTS Corp.

     3,600        55,487   

Ines Corp.

     3,600        27,002   

Information Services International-Dentsu Ltd.

     1,200        13,566   

Japan Digital Laboratory Co. Ltd.

     2,400        28,459   

Melco Holdings Inc.

     1,200        22,541   

NEC Networks & System Integration Corp.

     2,400        45,419   

Net One Systems Co. Ltd.

     12,000        109,386   

NS Solutions Corp.

     2,400        46,850   

OBIC Co. Ltd.

     960        204,362   

Roland DG Corp.

     1,200        15,738   
Security   Shares     Value  
   

SCSK Corp.

     6,256      $ 121,580   

Wacom Co. Ltd.

     48        173,510   
   

 

 

  
      863,900   

COSMETICS & PERSONAL CARE — 1.32%

  

  

Aderans Co. Ltd.a

     3,600        52,170   

Dr. Ci:Labo Co. Ltd.

     24        69,248   

Fancl Corp.

     6,000        66,984   

Kose Corp.

     4,800        105,719   

Lion Corp.

     24,000        124,864   

Mandom Corp.

     2,400        75,205   

Milbon Co. Ltd.

     1,200        41,882   

Pigeon Corp.

     2,400        135,790   

Pola Orbis Holdings Inc.

     2,400        73,982   
   

 

 

  
      745,844   

DISTRIBUTION & WHOLESALE — 1.86%

  

  

Ai Holdings Corp.

     6,000        55,084   

Canon Marketing Japan Inc.

     7,200        101,296   

Chori Co. Ltd.

     1,200        13,189   

Daiwabo Holdings Co. Ltd.

     24,000        47,084   

Doshisha Co. Ltd.

     1,200        31,229   

Hakuto Co. Ltd.

     2,400        22,866   

Inabata & Co. Ltd.

     6,000        44,548   

Itochu Enex Co. Ltd.

     8,400        44,795   

Iwatani Corp.

     24,000        97,030   

Japan Pulp & Paper Co. Ltd.

     12,000        40,321   

Kanematsu Corp.a

     60,000        90,397   

Matsuda Sangyo Co. Ltd.

     2,460        34,423   

Meiwa Corp.

     2,400        10,197   

Nagase & Co. Ltd.

     14,400        162,168   

Paltac Corp.

     3,600        46,902   

Ryoyo Electro Corp.

     3,600        31,645   

Trusco Nakayama Corp.

     3,600        70,666   

Yamazen Corp.

     8,400        56,813   

Yuasa Trading Co. Ltd.

     24,000        49,426   
   

 

 

  
      1,050,079   

DIVERSIFIED FINANCIAL SERVICES — 2.73%

  

  

AIFUL Corp.a,b

     19,800        128,767   

Century Tokyo Leasing Corp.

     6,080        142,280   

Fuyo General Lease Co. Ltd.

     2,400        85,974   

GCA Savvian Group Corp.

     2,400        22,658   

Hitachi Capital Corp.

     6,000        120,767   

IBJ Leasing Co. Ltd.

     2,400        63,577   
 

 

28    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI JAPAN SMALL CAP INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Ichiyoshi Securities Co. Ltd.

     4,800      $ 42,766   

J Trust Co. Ltd.

     3,600        64,578   

Jaccs Co. Ltd.

     24,000        113,419   

Japan Securities Finance Co. Ltd.

     10,800        74,685   

Kenedix Inc.a

     312        82,109   

Marusan Securities Co. Ltd.

     8,400        64,461   

NEC Capital Solutions Ltd.

     1,200        20,980   

Okasan Securities Group Inc.

     24,000        187,557   

Orient Corp.a

     36,000        120,572   

Ricoh Leasing Co. Ltd.

     2,400        64,591   

Tokai Tokyo Financial Holdings Inc.

     24,000        139,172   
   

 

 

  
      1,538,913   

ELECTRIC — 0.13%

  

  

Okinawa Electric Power Co. Inc. (The)

     2,400        72,630   
   

 

 

  
      72,630   

ELECTRICAL COMPONENTS & EQUIPMENT — 0.81%

  

Fujikura Ltd.

     48,000        150,358   

Funai Electric Co. Ltd.

     2,400        29,473   

Hitachi Cable Ltd.a

     24,000        37,199   

Icom Inc.

     1,200        26,014   

Nippon Signal Co. Ltd. (The)

     6,000        46,954   

Nissin Electric Co. Ltd.

     1,000        4,964   

Sinfonia Technology Co. Ltd.

     12,000        22,372   

SWCC Showa Holdings Co. Ltd.

     36,000        30,826   

Takaoka Toko Holdings Co. Ltd.a

     1,200        19,367   

Tatsuta Electric Wire and Cable Co. Ltd.

     8,400        60,819   

Tokyo Rope Manufacturing Co. Ltd.

     24,000        30,696   
   

 

 

  
      459,042   

ELECTRONICS — 5.47%

  

Alps Electric Co. Ltd.

     22,800        148,771   

Anritsu Corp.

     24,000        356,644   

Azbil Corp.

     8,400        173,080   

Chiyoda Integre Co. Ltd.

     2,400        27,704   

CMK Corp.

     4,800        17,481   

Cosel Co. Ltd.

     3,600        40,659   

Dai-ichi Seiko Co. Ltd.

     1,200        18,404   

Dainippon Screen Manufacturing Co. Ltd.

     24,000        120,182   

Eizo Nanao Corp.

     2,400        40,763   

Enplas Corp.

     1,200        51,962   

Fujitsu General Ltd.

     12,000        94,949   

Futaba Corp.

     4,800        53,380   

Hioki E.E. Corp.

     1,200        17,962   
Security   Shares     Value  
   

HORIBA Ltd.

     4,800      $ 150,618   

Hosiden Corp.

     8,400        51,259   

IDEC Corp.

     3,600        32,894   

Inaba Denki Sangyo Co. Ltd.

     2,400        73,202   

Japan Aviation Electronics Industry Ltd.

     12,000        92,478   

JEOL Ltd.a

     12,000        47,865   

Kaga Electronics Co. Ltd.

     3,600        30,631   

Koa Corp.

     4,800        45,315   

Kuroda Electric Co. Ltd.

     4,800        55,253   

Macnica Inc.

     1,200        22,944   

MARUWA Co. Ltd.

     1,200        28,641   

Meiko Electronics Co. Ltd.

     1,200        7,999   

Minebea Co. Ltd.b

     48,000        172,209   

Mitsumi Electric Co. Ltd.a

     10,800        64,032   

Nichicon Corp.

     7,200        65,788   

Nidec Copal Electronics Corp.

     2,400        11,420   

Nihon Dempa Kogyo Co. Ltd.

     2,400        24,739   

Nippon Ceramic Co. Ltd.

     2,400        40,269   

Nissha Printing Co. Ltd.a

     3,600        67,193   

Nitto Kogyo Corp.

     3,600        53,575   

Ryosan Co. Ltd.

     4,800        98,071   

Sanshin Electronics Co. Ltd.

     4,800        32,673   

Sanyo Denki Co. Ltd.

     12,000        63,863   

Shinko Shoji Co. Ltd.

     3,600        35,859   

SIIX Corp.

     2,400        32,907   

Sodick Co. Ltd.

     6,000        32,647   

Star Micronics Co. Ltd.

     6,000        61,327   

Taiyo Yuden Co. Ltd.

     13,200        145,792   

Tamura Corp.

     12,000        24,192   

TOKO Inc.a,b

     12,000        35,378   

Tokyo Seimitsu Co. Ltd.

     4,800        92,400   

Toyo Corp.

     4,800        60,767   

UKC Holdings Corp.

     1,200        24,921   

ULVAC Inc.a

     4,800        45,836   
   

 

 

  
      3,086,898   

ENGINEERING & CONSTRUCTION — 3.73%

  

Chudenko Corp.

     4,800        52,495   

COMSYS Holdings Corp.

     14,400        191,511   

Fudo Tetra Corp.a

     18,000        36,484   

Hibiya Engineering Ltd.

     2,400        25,831   

Japan Airport Terminal Co. Ltd.

     4,800        54,212   

Kandenko Co. Ltd.

     12,000        57,750   

Kyowa Exeo Corp.

     10,800        116,943   
 

 

SCHEDULES OF INVESTMENTS

      29   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI JAPAN SMALL CAP INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Maeda Corp.

     12,000      $ 51,116   

Maeda Road Construction Co. Ltd.

     12,000        172,859   

MIRAIT Holdings Corp.

     7,200        70,314   

Nippo Corp.

     12,000        158,422   

Nippon Koei Co. Ltd.

     12,000        42,922   

Nippon Road Co. Ltd. (The)

     12,000        53,978   

Nishimatsu Construction Co. Ltd.

     36,000        64,383   

Okumura Corp.

     24,000        100,932   

Penta-Ocean Construction Co. Ltd.b

     42,000        109,712   

Shinko Plantech Co. Ltd.

     6,000        49,946   

SHO-BOND Holdings Co. Ltd.

     2,400        87,926   

Taihei Dengyo Kaisha Ltd.

     1,000        5,864   

Taihei Kogyo Co. Ltd.

     12,000        44,483   

Taikisha Ltd.

     3,600        79,016   

Takasago Thermal Engineering Co. Ltd.

     8,400        63,369   

Takuma Co. Ltd.

     12,000        79,211   

Toa Corp.

     24,000        35,638   

Toda Corp.

     24,000        54,108   

Tokyu Construction Co. Ltd.

     15,120        37,530   

Toshiba Plant Systems & Services Corp.

     4,000        51,463   

Totetsu Kogyo Co. Ltd.

     3,600        52,092   

Toyo Construction Co. Ltd.

     7,200        23,178   

Toyo Engineering Corp.

     12,000        56,579   

Yahagi Construction Co. Ltd.

     4,800        20,811   
   

 

 

  
      2,101,078   

ENTERTAINMENT — 1.19%

  

Avex Group Holdings Inc.

     4,800        132,461   

Heiwa Corp.

     6,000        112,508   

Mars Engineering Corp.

     1,200        24,778   

Shochiku Co. Ltd.

     12,000        126,425   

Toei Co. Ltd.

     12,000        72,057   

Tokyotokeiba Co. Ltd.

     24,000        67,895   

Universal Entertainment Corp.

     3,600        61,769   

Yomiuri Land Co. Ltd.

     12,000        70,496   
   

 

 

  
      668,389   

ENVIRONMENTAL CONTROL — 0.61%

  

Asahi Holdings Inc.

     3,600        70,861   

Daiseki Co. Ltd.

     4,860        75,908   

Hitachi Zosen Corp.

     108,000        168,567   

Oyo Corp.

     2,400        29,213   
   

 

 

  
      344,549   
Security   Shares     Value  
   

FOOD — 3.54%

  

Ariake Japan Co. Ltd.

     2,400      $ 47,969   

Ezaki Glico Co. Ltd.

     12,000        118,101   

Fuji Oil Co. Ltd.

     8,400        122,914   

Fujiya Co. Ltd.

     12,000        25,363   

House Foods Corp.

     9,600        154,832   

Itoham Foods Inc.

     24,000        119,142   

Izumiya Co. Ltd.

     12,000        63,863   

J-Oil Mills Inc.

     12,000        39,150   

Kasumi Co. Ltd.

     4,800        30,228   

Kato Sangyo Co. Ltd.

     3,600        67,778   

Kewpie Corp.

     13,200        180,273   

Marudai Food Co. Ltd.

     12,000        39,931   

Maruha Nichiro Holdings Inc.

     60,000        110,557   

MEGMILK SNOW BRAND Co. Ltd.

     6,000        93,909   

Mitsubishi Shokuhin Co. Ltd.

     1,200        35,118   

Mitsui Sugar Co. Ltd.

     12,000        39,670   

Morinaga & Co. Ltd.

     24,000        51,767   

Morinaga Milk Industry Co. Ltd.

     24,000        75,699   

Nichirei Corp.

     36,000        203,685   

Nippon Beet Sugar Manufacturing Co. Ltd.

     24,000        46,824   

Nippon Flour Mills Co. Ltd.

     12,000        53,067   

Nippon Suisan Kaisha Ltd.

     33,600        69,924   

Nisshin OilliO Group Ltd. (The)

     12,000        43,833   

Prima Meat Packers Ltd.

     24,000        52,287   

Warabeya Nichiyo Co. Ltd.

     2,400        38,266   

Yokohama Reito Co. Ltd.

     6,000        47,409   

Yonekyu Corp.b

     2,400        23,646   
   

 

 

  
      1,995,205   

FOREST PRODUCTS & PAPER — 0.76%

  

Chuetsu Pulp & Paper Co. Ltd.

     12,000        19,510   

Daio Paper Corp.

     12,000        83,893   

Hokuetsu Kishu Paper Co. Ltd.

     12,000        64,774   

Mitsubishi Paper Mills Ltd.a

     48,000        48,905   

Pack Corp. (The)

     1,200        21,162   

Sumitomo Forestry Co. Ltd.

     19,200        190,418   
   

 

 

  
      428,662   

GAS — 0.07%

  

Shizuoka Gas Co. Ltd.

     6,000        40,516   
   

 

 

  
      40,516   

HAND & MACHINE TOOLS — 1.27%

  

Asahi Diamond Industrial Co. Ltd.

     6,000        54,889   
 

 

30    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI JAPAN SMALL CAP INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

DISCO Corp.

     3,600      $ 207,197   

Hitachi Koki Co. Ltd.

     7,200        60,013   

Meidensha Corp.

     24,000        74,138   

Mori Seiki Co. Ltd.

     13,200        141,929   

OSG Corp.

     9,600        131,316   

Union Tool Co.

     2,400        44,769   
   

 

 

  
      714,251   

HEALTH CARE — PRODUCTS — 1.02%

  

Asahi Intecc Co. Ltd.

     1,200        57,880   

Hogy Medical Co. Ltd.

     1,200        64,188   

Nihon Kohden Corp.

     4,800        167,527   

Nipro Corp.

     15,600        127,661   

Paramount Bed Holdings Co. Ltd.

     2,400        75,075   

Topcon Corp.

     8,400        81,851   
   

 

 

  
      574,182   

HEALTH CARE — SERVICES — 0.46%

  

Ain Pharmaciez Inc.

     1,200        62,953   

BML Inc.

     1,200        30,631   

CMIC Holdings Co. Ltd.

     1,200        19,224   

EPS Co. Ltd.

     12        30,202   

Message Co. Ltd.

     24        70,236   

Tsukui Corp.

     2,400        45,471   
   

 

 

  
      258,717   

HOLDING COMPANIES — DIVERSIFIED — 0.06%

  

Seiko Holdings Corp.a

     12,000        35,768   
   

 

 

  
      35,768   

HOME BUILDERS — 0.79%

  

HAJIME CONSTRUCTION Co. Ltd.

     1,200        47,865   

Haseko Corp.a,b

     180,000        159,983   

Misawa Homes Co. Ltd.

     3,600        50,804   

PanaHome Corp.

     12,000        75,309   

SxL Corp.a

     12,000        20,941   

Takamatsu Construction Group Co. Ltd.

     2,400        35,716   

Token Corp.

     960        52,651   
   

 

 

  
      443,269   

HOME FURNISHINGS — 0.89%

  

Alpine Electronics Inc.

     6,000        58,075   

Canon Electronics Inc.

     3,600        72,734   

Clarion Co. Ltd.a,b

     12,000        16,128   

Corona Corp.

     1,200        14,346   

Foster Electric Co. Ltd.b

     2,400        33,661   

France Bed Holdings Co. Ltd.

     24,000        53,068   
Security   Shares     Value  
   

Hoshizaki Electric Co. Ltd.

     4,800      $ 132,252   

JVC Kenwood Corp.

     18,040        48,688   

Pioneer Corp.a

     34,800        72,422   
   

 

 

  
      501,374   

HOUSEHOLD PRODUCTS & WARES — 0.34%

  

Kokuyo Co. Ltd.

     12,000        82,333   

Mitsubishi Pencil Co. Ltd.

     2,400        46,304   

Pilot Corp.

     24        62,146   
   

 

 

  
      190,783   

HOUSEWARES — 0.22%

  

Noritake Co. Ltd.

     12,000        30,566   

Sangetsu Co. Ltd.

     3,600        93,063   
   

 

 

  
      123,629   

INTERNET — 1.99%

  

Bit-Isle Inc.

     2,400        27,860   

CyberAgent Inc.

     72        134,776   

Digital Garage Inc.

     24        63,213   

Dwango Co. Ltd.

     12        33,232   

GMO Internet Inc.

     8,400        68,194   

GungHo Online Entertainment Inc.a,b

     3        90,624   

Gurunavi Inc.

     2,400        25,467   

Internet Initiative Japan Inc.

     2,400        63,967   

kabu.com Securities Co. Ltd.

     12,000        59,181   

Kakaku.com Inc.

     4,800        187,297   

Macromill Inc.b

     3,600        39,606   

Matsui Securities Co. Ltd.

     10,800        102,077   

Mixi Inc.b

     12        21,877   

Monex Group Inc.

     228        75,868   

MonotaRO Co. Ltd.

     1,200        52,807   

Start Today Co. Ltd.b

     7,200        77,026   
   

 

 

  
      1,123,072   

IRON & STEEL — 1.04%

  

Aichi Steel Corp.

     12,000        50,076   

Godo Steel Ltd.

     24,000        44,743   

Kurimoto Ltd.

     12,000        41,752   

Kyoei Steel Ltd.

     2,400        43,677   

Mitsubishi Steel Manufacturing Co. Ltd.

     24,000        49,165   

Nisshin Steel Holdings Co. Ltd.a

     9,600        74,086   

Osaka Steel Co. Ltd.

     1,200        21,851   

Sanyo Special Steel Co. Ltd.

     12,000        49,946   

Tokyo Steel Manufacturing Co. Ltd.

     13,200        65,385   

TOPY Industries Ltd.

     24,000        55,409   
 

 

SCHEDULES OF INVESTMENTS

      31   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI JAPAN SMALL CAP INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Yodogawa Steel Works Ltd.

     24,000      $ 89,486   
   

 

 

  
      585,576   

LEISURE TIME — 1.22%

    

Accordia Golf Co. Ltd.

     132        125,190   

Daiichikosho Co. Ltd.

     6,000        156,016   

Dunlop Sports Co. Ltd.

     1,200        13,501   

Fields Corp.

     2,400        35,404   

H.I.S. Co. Ltd.

     2,400        92,998   

Mizuno Corp.

     12,000        53,067   

PGM Holdings K.K.

     36        27,665   

Roland Corp.

     3,600        31,099   

Round One Corp.

     8,400        59,636   

Tokyo Dome Corp.

     24,000        91,307   
   

 

 

  
      685,883   

LODGING — 0.26%

    

Fujita Kanko Inc.

     12,000        40,581   

Resorttrust Inc.

     4,800        103,586   
   

 

 

  
      144,167   

MACHINERY — 3.88%

    

Aichi Corp.

     4,800        23,776   

Aida Engineering Ltd.

     8,400        67,284   

Chugai Ro Co. Ltd.

     12,000        32,907   

CKD Corp.

     7,200        49,243   

Daifuku Co. Ltd.

     12,000        88,186   

Daihen Corp.

     12,000        37,720   

Daiwa Industries Ltd.

     12,000        67,505   

Denyo Co. Ltd.

     1,200        15,413   

Ebara Corp.

     60,000        234,121   

Fuji Machine Manufacturing Co. Ltd.

     9,600        75,959   

Furukawa Co. Ltd.a

     48,000        55,669   

Iseki & Co. Ltd.

     24,000        84,544   

Juki Corp.a,b

     24,000        37,459   

Komori Corp.

     8,400        89,681   

Makino Milling Machine Co. Ltd.

     12,000        81,292   

Max Co. Ltd.

     4,000        49,729   

Miura Co. Ltd.

     3,600        88,381   

Modec Inc.

     2,400        62,875   

Nippon Sharyo Ltd.

     12,000        50,856   

Nippon Thompson Co. Ltd.

     12,000        54,758   

Nitto Kohki Co. Ltd.

     1,200        24,166   

Obara Group Inc.

     2,400        38,760   

Okuma Corp.

     24,000        174,810   
Security   Shares     Value  
   

Shima Seiki Manufacturing Ltd.

     3,600      $ 77,494   

Sintokogio Ltd.

     7,200        66,490   

Tadano Ltd.

     14,000        131,259   

Torishima Pump Manufacturing Co. Ltd.

     2,400        20,238   

Toshiba Machine Co. Ltd.

     12,000        59,311   

Toyo Kanetsu K.K.

     24,000        71,797   

Tsubakimoto Chain Co.

     24,000        120,963   

Tsugami Corp.

     6,000        33,948   

Yushin Precision Equipment Co. Ltd.

     1,200        21,396   
   

 

 

  
      2,187,990   

MANUFACTURING — 1.42%

    

Amano Corp.

     8,400        80,303   

Bando Chemical Industries Ltd.

     12,000        38,110   

Glory Ltd.

     8,400        193,384   

Japan Cash Machine Co. Ltd.

     2,400        22,346   

JSP Corp.

     2,400        35,534   

Nikkiso Co. Ltd.

     12,000        133,059   

Nippon Valqua Industries Ltd.

     12,000        31,996   

Nitta Corp.

     3,600        67,037   

Shin-Etsu Polymer Co. Ltd.

     4,800        18,261   

Tamron Co. Ltd.

     2,400        55,721   

Tenma Corp.

     3,600        41,673   

Tokai Rubber Industries Ltd.

     4,800        55,981   

Toyo Tanso Co. Ltd.

     1,200        28,290   
   

 

 

  
      801,695   

MEDIA — 0.63%

    

Gakken Holdings Co. Ltd.

     12,000        35,118   

Kadokawa Group Holdings Inc.b

     2,400        63,213   

SKY Perfect JSAT Holdings Inc.

     240        121,613   

Tohokushinsha Film Corp.

     2,400        18,261   

Tokyo Broadcasting System Holdings Inc.

     3,600        45,771   

TV Asahi Corp.

     2,400        44,509   

USEN Corp.a,b

     15,840        27,470   
   

 

 

  
      355,955   

METAL FABRICATE & HARDWARE — 2.01%

  

  

Furukawa-Sky Aluminum Corp.

     12,000        34,598   

Hanwa Co. Ltd.

     24,000        101,712   

Kitz Corp.

     12,000        59,571   

Misumi Group Inc.

     10,800        276,848   

Mitsui High-Tech Inc.

     3,600        27,158   

Nachi-Fujikoshi Corp.

     24,000        96,250   

Neturen Co. Ltd.

     4,800        38,604   
 

 

32    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI JAPAN SMALL CAP INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

NTN Corp.

     60,000      $ 169,738   

Oiles Corp.

     3,680        71,558   

Onoken Co. Ltd.

     2,400        22,371   

Ryobi Ltd.

     24,000        58,530   

Sumikin Bussan Corp.

     12,000        40,191   

Tocalo Co. Ltd.

     2,400        38,084   

Toho Zinc Co. Ltd.

     24,000        97,810   
   

 

 

  
      1,133,023   

MINING — 1.67%

    

Dowa Holdings Co. Ltd.

     36,000        266,118   

Mitsui Mining & Smelting Co. Ltd.

     72,000        178,712   

Nippon Coke & Engineering Co. Ltd.

     30,000        39,345   

Nippon Denko Co. Ltd.

     12,000        38,370   

Nippon Light Metal Holdings Co. Ltd.a

     72,000        83,503   

Nittetsu Mining Co. Ltd.

     12,000        59,961   

OSAKA Titanium technologies Co. Ltd.b

     2,400        48,255   

Pacific Metals Co. Ltd.

     24,000        128,767   

Sumitomo Light Metal Industries Ltd.

     60,000        59,181   

Toho Titanium Co. Ltd.

     4,800        41,413   
   

 

 

  
      943,625   

OFFICE & BUSINESS EQUIPMENT — 0.71%

  

  

Riso Kagaku Corp.

     2,400        48,281   

Sato Holdings Corp.

     2,400        45,446   

Seiko Epson Corp.

     18,000        174,615   

Toshiba Tec Corp.

     24,000        134,229   
   

 

 

  
      402,571   

OFFICE FURNISHINGS — 0.20%

    

Itoki Corp.

     6,000        32,517   

Okamura Corp.

     12,000        78,430   
   

 

 

  
      110,947   

OIL & GAS — 0.10%

    

AOC Holdings Inc.

     6,000        22,762   

TOKAI Holdings Corp.

     10,800        35,235   
   

 

 

  
      57,997   

PACKAGING & CONTAINERS — 0.78%

    

Achilles Corp.

     24,000        36,159   

FP Corp.

     2,400        152,179   

Fuji Seal International Inc.

     3,600        82,840   

Fujimori Kogyo Co. Ltd.

     1,200        27,314   

Nihon Yamamura Glass Co. Ltd.

     12,000        23,932   

Rengo Co. Ltd.

     24,000        117,320   
   

 

 

  
      439,744   
Security   Shares     Value  
   

PHARMACEUTICALS — 3.57%

    

3-D Matrix Ltd.a

     1,200      $ 70,236   

Fuso Pharmaceutical Industries Ltd.

     12,000        48,255   

Kaken Pharmaceutical Co. Ltd.

     12,000        209,798   

Katakura Industries Co. Ltd.

     4,800        47,292   

Kissei Pharmaceutical Co. Ltd.

     2,400        47,709   

Kobayashi Pharmaceutical Co. Ltd.

     3,600        171,494   

KYORIN Holdings Inc.

     6,000        136,896   

Mochida Pharmaceutical Co. Ltd.

     12,000        146,065   

Nichi-Iko Pharmaceutical Co. Ltd.

     3,600        77,494   

Nippon Shinyaku Co. Ltd.

     12,000        159,462   

Rohto Pharmaceutical Co. Ltd.

     12,000        156,211   

Sawai Pharmaceutical Co. Ltd.

     2,400        261,695   

Seikagaku Corp.

     4,800        51,923   

Ship Healthcare Holdings Inc.

     4,800        137,923   

Sosei Group Corp.a

     12        40,581   

Toho Holdings Co. Ltd.

     6,000        124,604   

Torii Pharmaceutical Co. Ltd.

     1,200        28,550   

Towa Pharmaceutical Co. Ltd.

     1,200        65,034   

Vital KSK Holdings Inc.

     3,600        33,948   
   

 

 

  
      2,015,170   

REAL ESTATE — 2.04%

    

Airport Facilities Co. Ltd.

     4,800        24,817   

Arnest One Corp.

     6,000        99,176   

Daibiru Corp.

     7,200        72,031   

Daikyo Inc.

     36,000        87,015   

Goldcrest Co. Ltd.

     2,400        45,706   

Heiwa Real Estate Co. Ltd.

     6,000        89,551   

Iida Home Max Co. Ltd.

     2,400        31,060   

Leopalace21 Corp.a

     19,200        70,340   

Relo Holdings Inc.

     1,200        46,889   

Sumitomo Real Estate Sales Co. Ltd.

     1,200        53,263   

Takara Leben Co. Ltd.

     3,600        40,776   

TOC Co. Ltd.

     9,600        64,721   

Tokyo Tatemono Co. Ltd.

     60,000        336,224   

Tokyu Livable Inc.

     3,600        57,555   

Touei Housing Corp.

     2,400        31,424   
   

 

 

  
      1,150,548   

REAL ESTATE INVESTMENT TRUSTS — 7.10%

  

Activia Properties Inc.

     24        183,135   

Advance Residence Investment Corp.

     168        358,543   

Daiwa Office Investment Corp.

     36        153,544   
 

 

SCHEDULES OF INVESTMENTS

      33   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI JAPAN SMALL CAP INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Daiwahouse Residential Investment Corp.

     48      $ 202,645   

Frontier Real Estate Investment Corp.

     24        232,040   

Fukuoka REIT Corp.

     12        99,892   

Global One Real Estate Investment Corp. Ltd.

     12        82,203   

Hankyu REIT Inc.

     12        71,797   

Heiwa Real Estate REIT Inc.

     84        64,188   

Industrial & Infrastructure Fund Investment Corp.

     12        108,216   

Japan Excellent Inc.

     24        145,935   

Japan Hotel REIT Investment Corp.

     216        72,929   

Japan Logistics Fund Inc.

     24        229,178   

Japan Rental Housing Investments Inc.

     108        90,137   

Kenedix Realty Investment Corp.

     36        149,057   

MID REIT Inc.

     24        58,010   

Mori Hills REIT Investment Corp.

     24        137,871   

MORI TRUST Sogo REIT Inc.

     24        230,739   

Nippon Accommodations Fund Inc.

     24        176,891   

Nomura Real Estate Residential Fund Inc.

     24        130,588   

ORIX JREIT Inc.

     192        227,045   

Premier Investment Corp.

     24        108,216   

Sekisui House SI Investment Corp.

     12        61,392   

TOKYU REIT Inc.

     24        135,790   

Top REIT Inc.

     24        112,768   

United Urban Investment Corp.

     288        380,212   
   

 

 

  
      4,002,961   

RETAIL — 9.14%

  

Alpen Co. Ltd.

     2,400        44,353   

Aoki Holdings Inc.

     2,400        57,152   

Aoyama Trading Co. Ltd.

     7,200        154,676   

Arc Land Sakamoto Co. Ltd.

     2,400        38,864   

Arcs Co. Ltd.

     4,800        91,931   

Asahi Co. Ltd.

     1,200        16,584   

Askul Corp.

     2,400        32,673   

Atom Corp.

     4,800        30,748   

Autobacs Seven Co. Ltd.

     3,600        154,910   

Belluna Co. Ltd.

     3,600        27,119   

BIC Camera Inc.b

     120        56,969   

Cawachi Ltd.

     2,400        49,478   

Chiyoda Co. Ltd.

     3,600        79,406   

cocokara fine Inc.

     2,400        76,427   

Colowide Co. Ltd.

     6,000        63,668   

Cosmos Pharmaceutical Corp.

     1,200        136,961   
Security   Shares     Value  
   

CREATE HOLDINGS Co. Ltd.

     1,200      $ 38,955   

Daiei Inc. (The)a

     14,400        36,055   

DCM Holdings Co. Ltd.

     12,000        84,674   

Doutor Nichires Holdings Co. Ltd.

     4,800        65,606   

EDION Corp.

     9,600        41,934   

Fuji Co. Ltd.

     2,400        47,553   

Geo Holdings Corp.

     48        50,310   

Gulliver International Co. Ltd.

     840        35,053   

H2O Retailing Corp.

     12,000        109,647   

Heiwado Co. Ltd.

     4,800        68,519   

Honeys Co. Ltd.

     2,160        26,947   

Izumi Co. Ltd.

     7,200        158,422   

Jin Co. Ltd.

     1,200        58,400   

Joshin Denki Co. Ltd.

     12,000        120,052   

K’s Holdings Corp.

     6,000        155,430   

Kappa Create Co. Ltd.

     1,800        37,459   

Keiyo Co. Ltd.b

     6,000        30,826   

Kisoji Co. Ltd.

     3,600        69,378   

Kohnan Shoji Co. Ltd.

     3,600        44,093   

Komeri Co. Ltd.

     3,600        100,672   

Konaka Co. Ltd.

     2,400        22,528   

Kura Corp.

     1,200        16,844   

Maruetsu Inc. (The)

     12,000        40,711   

Matsumotokiyoshi Co. Ltd.

     3,600        98,253   

Matsuya Co. Ltd.a

     4,800        43,703   

Megane Top Co. Ltd.

     3,600        41,205   

Ministop Co. Ltd.

     1,200        19,354   

MOS Food Services Inc.

     3,600        70,080   

Nishimatsuya Chain Co. Ltd.

     7,200        58,296   

Nissen Holdings Co. Ltd.

     4,800        16,961   

Ohsho Food Service Corp.

     1,200        33,948   

Otsuka Kagu Ltd.

     1,200        10,431   

Pal Co. Ltd.

     1,200        27,132   

Parco Co. Ltd.

     2,400        23,074   

Paris Miki Holdings Inc.

     4,800        25,077   

Plenus Co. Ltd.

     3,600        57,321   

Point Inc.

     2,040        75,621   

Ringer Hut Co. Ltd.

     2,400        29,915   

Royal Holdings Co. Ltd.

     3,600        43,156   

Ryohin Keikaku Co. Ltd.

     2,400        157,902   

Saint Marc Holdings Co. Ltd.

     1,200        48,775   

Saizeriya Co. Ltd.

     4,800        62,068   

San-A & Co. Ltd.

     1,200        50,531   
 

 

34    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI JAPAN SMALL CAP INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Senshukai Co. Ltd.

     6,000      $ 45,393   

Seria Co. Ltd.

     2,400        47,657   

Shimachu Co. Ltd.

     6,000        128,441   

Sugi Holdings Co. Ltd.

     4,800        158,682   

Sundrug Co. Ltd.

     4,800        186,516   

Toridoll Corp.

     2,400        24,010   

Tsuruha Holdings Inc.

     2,400        208,888   

United Arrows Ltd.

     2,400        60,845   

UNY Co. Ltd.

     28,800        206,339   

Valor Co. Ltd.

     4,800        83,035   

Watami Co. Ltd.

     3,600        67,583   

Welcia Holdings Co. Ltd.

     1,200        55,148   

Xebio Co. Ltd.

     3,600        70,822   

Yellow Hat Ltd.

     2,400        37,563   

Yoshinoya Holdings Co. Ltd.

     72        82,567   

Zensho Holdings Co. Ltd.b

     9,600        126,425   
   

 

 

  
      5,154,704   

SEMICONDUCTORS — 0.52%

    

Axell Corp.

     1,200        26,716   

Megachips Corp.

     2,400        37,850   

Mimasu Semiconductor Industry Co. Ltd.

     3,600        29,148   

Nippon Chemi-Con Corp.a

     12,000        33,427   

Sanken Electric Co. Ltd.

     12,000        54,238   

Shindengen Electric Manufacturing Co. Ltd.

     12,000        42,402   

Shinko Electric Industries Co. Ltd.

     8,400        68,376   
   

 

 

  
      292,157   

SHIPBUILDING — 0.42%

    

Mitsui Engineering & Shipbuilding Co. Ltd.

     96,000        187,297   

Namura Shipbuilding Co. Ltd.

     7,200        48,775   
   

 

 

  
      236,072   

SOFTWARE — 1.42%

    

Access Co. Ltd.a,b

     36        25,714   

Capcom Co. Ltd.

     6,000        92,543   

Fuji Soft Inc.

     2,400        55,200   

IT Holdings Corp.

     10,848        150,151   

NEC Mobiling Ltd.

     1,200        53,523   

Nihon Unisys Ltd.

     7,200        56,579   

NSD Co. Ltd.

     6,000        65,034   

Obic Business Consultants Co. Ltd.

     600        33,492   

Simplex Technology Inc.

     60        19,126   
Security   Shares     Value  
   

Square Enix Holdings Co. Ltd.

     8,400      $ 96,965   

Systena Corp.

     24        21,435   

Tecmo Koei Holdings Co. Ltd.

     4,800        42,610   

Trans Cosmos Inc.

     3,600        49,048   

Zenrin Co. Ltd.

     3,600        41,713   
   

 

 

  
      803,133   

STORAGE & WAREHOUSING — 0.34%

    

Mitsui-Soko Co. Ltd.

     12,000        56,319   

Sumitomo Warehouse Co. Ltd. (The)

     24,000        137,871   
   

 

 

  
      194,190   

TELECOMMUNICATIONS — 0.65%

    

Denki Kogyo Co. Ltd.

     12,000        49,165   

Hitachi Kokusai Electric Inc.

     12,000        100,802   

Japan Radio Co. Ltd.a

     12,000        38,630   

Oki Electric Industry Co. Ltd.a

     96,000        108,216   

T-Gaia Corp.

     3,600        39,723   

Uniden Corp.

     12,000        29,265   
   

 

 

  
      365,801   

TEXTILES — 1.17%

    

Fujibo Holdings Inc.

     12,000        35,248   

Kurabo Industries Ltd.

     36,000        61,652   

Nisshinbo Holdings Inc.

     18,000        129,352   

Nitto Boseki Co. Ltd.

     24,000        93,909   

Seiren Co. Ltd.

     7,200        44,717   

Tokai Corp. (GIFU)

     1,200        35,365   

Toyobo Co. Ltd.

     120,000        217,212   

Unitika Ltd.a

     72,000        39,801   
   

 

 

  
      657,256   

TOYS, GAMES & HOBBIES — 0.10%

  

Tomy Co. Ltd.

     9,600        55,149   
   

 

 

  
      55,149   

TRANSPORTATION — 2.57%

    

Daiichi Chuo Kisen Kaishaa,b

     12,000        10,926   

Fukuyama Transporting Co. Ltd.

     24,000        127,986   

Hitachi Transport System Ltd.

     6,000        85,129   

Iino Kaiun Kaisha Ltd.

     12,000        68,806   

Kawasaki Kisen Kaisha Ltd.a

     120,000        270,540   

Kintetsu World Express Inc.

     2,400        85,844   

Nippon Konpo Unyu Soko Co. Ltd.

     7,200        100,828   

NS United Kaiwn Kaisha Ltd.a

     12,000        17,039   

Sankyu Inc.

     36,000        167,006   

Seino Holdings Co. Ltd.

     24,000        181,314   
 

 

SCHEDULES OF INVESTMENTS

      35   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI JAPAN SMALL CAP INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Senko Co. Ltd.

     12,000      $ 59,961   

Shibusawa Warehouse Co. Ltd. (The)

     12,000        45,393   

Sotetsu Holdings Inc.

     60,000        202,255   

Yusen Logistics Co. Ltd.

     2,400        23,958   
   

 

 

  
      1,446,985   

VENTURE CAPITAL — 0.22%

    

JAFCO Co. Ltd.

     3,600        122,718   
   

 

 

  
      122,718   
   

 

 

  

TOTAL COMMON STOCKS

  

  

(Cost: $57,272,763)

  

     56,234,361   

SHORT-TERM INVESTMENTS — 2.12%

  

MONEY MARKET FUNDS — 2.12%

  

  

BlackRock Cash Funds: Institutional, SL Agency Shares

    

0.21%c,d,e

     1,063,179        1,063,179   

BlackRock Cash Funds: Prime, SL Agency Shares

    

0.18%c,d,e

     76,978        76,978   

BlackRock Cash Funds: Treasury, SL Agency Shares

    

0.04%c,d

     57,741        57,741   
   

 

 

  
      1,197,898   
   

 

 

  

TOTAL SHORT-TERM INVESTMENTS

  

  

(Cost: $1,197,898)

  

     1,197,898   
   

 

 

  

TOTAL INVESTMENTS
IN SECURITIES — 101.85%

   

  

(Cost: $58,470,661)

  

     57,432,259   

Other Assets, Less Liabilities — (1.85)%

  

     (1,044,395 ) 
   

 

 

  

NET ASSETS — 100.00%

  

   $ 56,387,864   
   

 

 

  

 

a

Non-income earning security.

b 

All or a portion of this security represents a security on loan. See Note 5.

c 

Affiliated issuer. See Note 2.

d 

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

e 

All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

 

 

36    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited)

iSHARES® MSCI MALAYSIA INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

COMMON STOCKS — 99.72%

  

AGRICULTURE — 8.55%

  

  

British American Tobacco (Malaysia) Bhd

     790,100      $ 15,594,920   

Genting Plantations Bhd

     1,579,700        4,329,416   

IOI Corp. Bhd

     22,266,630        35,303,830   

Kuala Lumpur Kepong Bhd

     3,327,600        22,331,151   
   

 

 

  
      77,559,317   

AIRLINES — 0.90%

  

  

AirAsia Bhd

     8,652,700        8,147,341   
   

 

 

  
      8,147,341   

AUTO MANUFACTURERS — 1.66%

  

  

UMW Holdings Bhd

     3,637,800        15,066,766   
   

 

 

  
      15,066,766   

BANKS — 29.23%

  

  

Alliance Financial Group Bhd

     6,961,600        9,708,622   

AMMB Holdings Bhd

     11,483,537        23,483,564   

CIMB Group Holdings Bhd

     33,459,564        77,951,419   

Hong Leong Bank Bhd

     3,906,940        18,431,705   

Malayan Banking Bhd

     29,219,320        86,509,231   

Public Bank Bhd Foreign

     7,338,600        38,230,532   

RHB Capital Bhd

     4,290,700        10,898,559   
   

 

 

  
      265,213,632   

BUILDING MATERIALS — 0.92%

  

  

Lafarge Malayan Cement Bhd

     2,650,260        8,369,694   
   

 

 

  
      8,369,694   

CHEMICALS — 4.39%

  

  

Petronas Chemicals Group Bhd

     19,393,400        39,847,303   
   

 

 

  
      39,847,303   

DIVERSIFIED FINANCIAL SERVICES — 0.74%

  

  

Hong Leong Financial Group Bhd

     1,455,700        6,754,486   
   

 

 

  
      6,754,486   

ELECTRIC — 5.57%

  

  

Tenaga Nasional Bhd

     19,161,512        43,028,925   

YTL Power International Bhd

     15,252,975        7,501,868   
   

 

 

  
      50,530,793   

ENGINEERING & CONSTRUCTION — 2.31%

  

  

Gamuda Bhd

     11,470,900        14,252,793   

Malaysia Airports Holdings Bhd

     3,765,100        6,664,001   
   

 

 

  
      20,916,794   
Security   Shares     Value  
   

ENTERTAINMENT — 0.70%

  

  

Berjaya Sports Toto Bhd

     4,671,113      $ 6,348,058   
   

 

 

  
      6,348,058   

FOOD — 2.66%

  

  

Felda Global Ventures Holdings Bhd

     7,572,400        11,001,481   

PPB Group Bhd

     3,281,166        13,143,774   
   

 

 

  
      24,145,255   

GAS — 2.69%

  

  

Petronas Gas Bhd

     4,111,700        24,373,514   
   

 

 

  
      24,373,514   

HEALTH CARE — SERVICES — 1.70%

  

  

IHH Healthcare Bhda

     13,937,400        15,468,462   
   

 

 

  
      15,468,462   

HOLDING COMPANIES — DIVERSIFIED — 10.06%

  

  

IJM Corp. Bhd

     8,078,440        13,409,609   

MMC Corp. Bhd

     5,264,200        4,275,406   

Sime Darby Bhd

     18,729,225        55,814,969   

YTL Corp. Bhd

     33,243,412        17,748,465   
   

 

 

  
      91,248,449   

LODGING — 7.51%

  

  

Genting Bhd

     14,168,900        43,508,449   

Genting Malaysia Bhd

     20,566,700        24,622,808   
   

 

 

  
      68,131,257   

OIL & GAS — 1.44%

  

  

Petronas Dagangan Bhd

     1,718,300        13,076,983   
   

 

 

  
      13,076,983   

OIL & GAS SERVICES — 2.09%

  

  

Malaysia Marine and Heavy Engineering Holdings Bhd

     3,319,500        4,350,097   

Sapurakencana Petroleum Bhda

     15,584,800        14,624,145   
   

 

 

  
      18,974,242   

REAL ESTATE — 0.86%

  

  

UEM Land Holdings Bhda

     10,477,000        7,763,252   
   

 

 

  
      7,763,252   

RETAIL — 0.69%

    

Parkson Holdings Bhd

     4,170,371        6,220,809   
   

 

 

  
      6,220,809   

TELECOMMUNICATIONS — 12.50%

    

Axiata Group Bhd

     17,677,800        36,608,290   

DiGi.Com Bhd

     21,541,600        31,854,105   
 

 

SCHEDULES OF INVESTMENTS

      37   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI MALAYSIA INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Maxis Communications Bhd

     15,585,800      $ 32,124,752   

Telekom Malaysia Bhd

     7,426,300        12,783,665   
   

 

 

  
      113,370,812   

TRANSPORTATION — 2.55%

    

Bumi Armada Bhda

     8,120,200        9,958,116   

MISC Bhda

     7,722,420        13,168,469   
   

 

 

  
      23,126,585   
   

 

 

  

TOTAL COMMON STOCKS

  

  

(Cost: $467,358,554)

       904,653,804   

SHORT-TERM INVESTMENTS — 0.00%

  

MONEY MARKET FUNDS — 0.00%

  

  

BlackRock Cash Funds: Treasury, SL Agency Shares

    

0.04%b,c

     25,782        25,782   
   

 

 

  
      25,782   
   

 

 

  

TOTAL SHORT-TERM INVESTMENTS

  

  

(Cost: $25,782)

       25,782   
   

 

 

  

TOTAL INVESTMENTS
IN SECURITIES — 99.72%

   

  

(Cost: $467,384,336)

       904,679,586   

Other Assets, Less Liabilities — 0.28%

  

     2,574,057   
   

 

 

  

NET ASSETS — 100.00%

  

   $ 907,253,643   
   

 

 

  

 

a 

Non-income earning security.

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.

 

 

38    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited)

iSHARES® MSCI PACIFIC EX-JAPAN INDEX FUND

February 28, 2013

 

Security    Shares      Value  
     

COMMON STOCKS — 99.36%

  

AUSTRALIA — 64.03%

  

   

AGL Energy Ltd.

      1,466,883       $ 23,937,440   

ALS Ltd.

      911,196         10,923,520   

Alumina Ltd.a

      6,673,887         8,438,004   

Amcor Ltd.

      3,228,687         30,409,388   

AMP Ltd.

      7,793,280         43,721,469   

APA Group

      2,200,770         13,856,185   

Asciano Ltd.

      2,610,630         14,913,289   

ASX Ltd.

      474,903         17,721,332   

Aurizon Holdings Ltd.

      4,855,653         20,033,028   

Australia and New Zealand Banking Group Ltd.

      7,277,391         213,970,573   

Bendigo and Adelaide Bank Ltd.

      1,065,042         10,827,044   

BHP Billiton Ltd.

      8,582,706         325,717,225   

Boral Ltd.

      2,038,311         10,788,347   

Brambles Ltd.

      4,164,237         37,302,453   

Caltex Australia Ltd.

      360,261         7,357,903   

CFS Retail Property Trust Group

      5,301,450         11,343,181   

Coca-Cola Amatil Ltd.

      1,525,986         22,636,686   

Cochlear Ltd.

      152,361         11,049,593   

Commonwealth Bank of Australia

      4,299,075         296,067,239   

Computershare Ltd.

      1,193,940         12,442,974   

Crown Ltd.

      1,068,903         13,142,416   

CSL Ltd.

      1,341,252         82,386,402   

Dexus Property Group

      12,308,274         13,734,649   

Echo Entertainment Group Ltd.

      1,986,930         7,648,289   

Federation Centres

      3,633,201         9,112,749   

Flight Centre Ltd.

      146,421         4,871,701   

Fortescue Metals Group Ltd.

      3,756,456         18,151,571   

Goodman Group

      4,551,228         21,665,836   

GPT Group

      3,771,603         15,174,431   

Harvey Norman Holdings Ltd.

      1,416,096         3,609,823   

Iluka Resources Ltd.

      1,124,442         12,110,071   

Incitec Pivot Ltd.

      4,355,208         14,401,420   

Insurance Australia Group Ltd.

      5,575,581         32,478,525   

James Hardie Industries SE

      1,173,447         11,772,900   

Leighton Holdings Ltd.

      405,702         9,806,116   

Lend Lease Group

      1,456,488         15,879,997   

Macquarie Group Ltd.

      867,537         33,500,678   

Metcash Ltd.

      2,365,902         9,882,136   

Mirvac Group

      9,176,112         15,406,233   
Security    Shares      Value  
     

National Australia Bank Ltd.

      6,203,736       $ 191,802,452   

Newcrest Mining Ltd.

      2,046,924         47,484,900   

Orica Ltd.

      978,318         27,352,413   

Origin Energy Ltd.

      2,924,262         36,433,489   

OZ Minerals Ltd.

      812,592         5,290,827   

Qantas Airways Ltd.a

      2,966,436         4,995,682   

QBE Insurance Group Ltd.

      3,192,750         43,733,570   

Ramsay Health Care Ltd.

      351,351         11,553,422   

Rio Tinto Ltd.

      1,165,131         79,977,430   

Santos Ltd.

      2,566,971         35,240,628   

Sims Metal Management Ltd.

      437,778         4,880,628   

Sonic Healthcare Ltd.

      1,004,751         13,814,284   

SP AusNet

      4,446,387         5,416,866   

Stockland Corp. Ltd.

      5,893,074         22,684,209   

Suncorp Group Ltd.

      3,449,655         39,800,954   

Sydney Airport

      493,911         1,602,883   

Tabcorp Holdings Ltd.

      1,969,110         6,410,487   

Tatts Group Ltd.

      3,659,040         11,949,555   

Telstra Corp. Ltd.

      11,630,520         54,651,958   

Toll Holdings Ltd.

      1,823,580         11,537,380   

Transurban Group

      3,516,777         22,177,850   

Treasury Wine Estates Ltd.

      1,730,619         9,390,122   

Wesfarmers Ltd.

      2,689,632         112,976,544   

Westfield Group

      5,711,013         65,482,474   

Westfield Retail Trust

      7,758,828         25,259,058   

Westpac Banking Corp.

      8,245,314         259,733,878   

Whitehaven Coal Ltd.

      1,217,997         3,491,388   

Woodside Petroleum Ltd.

      1,760,319         67,579,745   

Woolworths Ltd.

      3,291,948         117,718,700   

WorleyParsons Ltd.

      553,014         15,082,185   
     

 

 

  
        2,843,698,777   

HONG KONG — 21.99%

      

AIA Group Ltd.

      32,076,014         138,978,068   

ASM Pacific Technology Ltd.b

      504,900         6,654,001   

Bank of East Asia Ltd. (The)

      3,267,120         13,355,217   

BOC Hong Kong (Holdings) Ltd.

      9,949,500         33,550,543   

Cathay Pacific Airways Ltd.b

      3,267,000         6,100,203   

Cheung Kong (Holdings) Ltd.b

      3,861,000         60,044,566   

Cheung Kong Infrastructure Holdings Ltd.

      1,485,000         9,737,422   

CLP Holdings Ltd.

      4,752,000         40,902,919   

First Pacific Co. Ltd.

      5,940,000         7,858,875   

Galaxy Entertainment Group Ltd.a

      5,643,000         23,685,777   
 

 

SCHEDULES OF INVESTMENTS

      39   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI PACIFIC EX-JAPAN INDEX FUND

February 28, 2013

 

Security    Shares      Value  
     

Hang Lung Properties Ltd.

      5,940,736       $ 23,020,319   

Hang Seng Bank Ltd.

      2,049,300         33,138,258   

Henderson Land Development Co. Ltd.b

      2,673,056         18,596,281   

HKT Trust and HKT Ltd.

      6,237,000         6,096,373   

Hong Kong and China Gas Co. Ltd. (The)

      13,959,097         39,061,027   

Hong Kong Exchanges and Clearing Ltd.

      2,675,400         48,127,082   

Hopewell Holdings Ltd.

      1,485,000         6,491,615   

Hutchison Whampoa Ltd.

      5,643,000         60,797,133   

Hysan Development Co. Ltd.

      1,782,000         9,168,688   

Kerry Properties Ltd.

      1,930,500         9,932,745   

Li & Fung Ltd.b

      16,039,200         21,510,111   

Link REIT (The)

      6,088,500         32,543,289   

MGM China Holdings Ltd.

      2,613,600         6,315,901   

MTR Corp. Ltd.

      3,861,000         15,932,223   

New World Development Co. Ltd.

      9,801,941         18,049,571   

NWS Holdings Ltd.

      3,861,000         7,348,738   

Orient Overseas International Ltd.

      594,000         4,186,038   

PCCW Ltd.

      10,692,000         5,087,588   

Power Assets Holdings Ltd.

      3,712,500         33,104,364   

Sands China Ltd.

      6,415,200         30,566,889   

Shangri-La Asia Ltd.

      4,159,000         9,696,476   

Sino Land Co. Ltd.

      7,722,800         14,041,726   

SJM Holdings Ltd.

      5,049,000         12,617,861   

Sun Hung Kai Properties Ltd.

      4,158,000         64,341,670   

Swire Pacific Ltd. Class A

      1,782,000         23,002,147   

Swire Properties Ltd.

      3,088,800         11,550,862   

Wharf (Holdings) Ltd. (The)

      4,158,600         36,358,289   

Wheelock and Co. Ltd.

      2,376,000         12,975,570   

Wing Hang Bank Ltd.

      445,500         4,943,394   

Wynn Macau Ltd.a

      4,158,000         10,964,893   

Yue Yuen Industrial (Holdings) Ltd.b

      1,930,500         6,522,254   
     

 

 

  
        976,956,966   

NEW ZEALAND — 0.89%

      

Auckland International Airport Ltd.

      2,502,819         5,872,498   

Contact Energy Ltd.a

      991,089         4,429,028   

Fletcher Building Ltd.

      1,827,738         13,865,706   

SKYCITY Entertainment Group Ltd.

      1,550,043         5,461,848   
Security    Shares      Value  
     

Telecom Corp. of New Zealand Ltd.

      4,964,652       $ 9,961,188   
     

 

 

  
        39,590,268   

SINGAPORE — 12.45%

  

   

Ascendas REIT

      5,049,813         10,485,170   

CapitaCommercial Trustb

      5,346,000         7,169,751   

CapitaLand Ltd.

      6,831,000         21,578,841   

CapitaMall Trust Management Ltd.

      6,237,000         10,833,811   

CapitaMalls Asia Ltd.

      3,564,000         5,989,190   

City Developments Ltd.

      1,485,000         13,401,293   

ComfortDelGro Corp. Ltd.

      5,049,000         7,832,018   

DBS Group Holdings Ltd.

      4,943,000         60,342,339   

Fraser and Neave Ltd.

      2,344,150         17,859,289   

Genting Singapore PLC

      16,335,400         20,786,310   

Global Logistic Properties Ltd.

      5,643,000         11,580,061   

Golden Agri-Resources Ltd.

      19,305,987         10,138,470   

Hutchison Port Holdings Trust

      13,959,000         11,306,790   

Jardine Cycle & Carriage Ltd.b

      297,000         12,381,499   

Keppel Corp. Ltd.

      3,861,200         36,311,346   

Keppel Land Ltd.

      2,079,000         6,987,388   

Noble Group Ltd.

      10,395,708         9,952,667   

Olam International Ltd.b

      4,158,600         5,594,077   

Oversea-Chinese Banking Corp. Ltd.b

      6,831,600         55,745,635   

SembCorp Industries Ltd.

      2,673,240         11,425,118   

SembCorp Marine Ltd.b

      2,376,200         8,619,784   

Singapore Airlines Ltd.

      1,485,800         13,072,399   

Singapore Exchange Ltd.

      2,376,000         14,589,053   

Singapore Press Holdings Ltd.b

      3,750,517         12,665,854   

Singapore Technologies Engineering Ltd.

      4,158,000         14,277,116   

Singapore Telecommunications Ltd.

      21,384,328         59,432,105   

StarHub Ltd.

      1,782,000         6,032,381   

United Overseas Bank Ltd.

      3,357,000         51,748,382   

UOL Group Ltd.

      1,188,000         6,248,338   

Wilmar International Ltd.b

      5,049,000         14,481,074   

Yangzijiang Shipbuilding (Holdings) Ltd.

      5,049,000         3,936,405   
     

 

 

  
        552,803,954   
     

 

 

  

TOTAL COMMON STOCKS

  

   

(Cost: $3,445,861,643)

         4,413,049,965   
 

 

40    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI PACIFIC EX-JAPAN INDEX FUND

February 28, 2013

 

Security   Shares      Value  
    

INVESTMENT COMPANIES — 0.00%

  

AUSTRALIA — 0.00%

  

   

BGP Holdings PLCa,c

     27,004,595       $ 353   
    

 

 

  
       353   
    

 

 

  

TOTAL INVESTMENT COMPANIES

  

   

(Cost: $0)

        353   

SHORT-TERM INVESTMENTS — 1.03%

  

MONEY MARKET FUNDS — 1.03%

  

   

BlackRock Cash Funds: Institutional,
SL Agency Shares

   

   

0.21%d,e,f

     40,877,145         40,877,145   

BlackRock Cash Funds: Prime, SL Agency Shares

     

0.18%d,e,f

     2,959,640         2,959,640   

BlackRock Cash Funds: Treasury, SL Agency Shares

     

0.04%d,e

     1,985,263         1,985,263   
    

 

 

  
       45,822,048   
    

 

 

  

TOTAL SHORT-TERM INVESTMENTS

  

   

(Cost: $45,822,048)

        45,822,048   
    

 

 

  

TOTAL INVESTMENTS
IN SECURITIES — 100.39%

   

   

(Cost: $3,491,683,691)

        4,458,872,366   

Other Assets, Less Liabilities — (0.39)%

  

      (17,445,097 ) 
    

 

 

  

NET ASSETS — 100.00%

      $ 4,441,427,269   
    

 

 

  

 

a 

Non-income earning security.

b 

All or a portion of this security represents a security on loan. See Note 5.

c 

Security valued using Level 3 inputs in accordance with management’s fair valuation policy. See Note 1.

d 

Affiliated issuer. See Note 2.

e 

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

f 

All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

 

 

SCHEDULES OF INVESTMENTS

      41   

Table of Contents

Schedule of Investments (Unaudited)

iSHARES® MSCI SINGAPORE INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

COMMON STOCKS — 99.76%

  

AGRICULTURE — 1.87%

  

  

Golden Agri-Resources Ltd.

     57,183,628      $ 30,029,778   
   

 

 

  
      30,029,778   

AIRLINES — 2.56%

  

  

Singapore Airlines Ltd.

     4,668,467        41,074,212   
   

 

 

  
      41,074,212   

BANKS — 30.03%

  

  

DBS Group Holdings Ltd.

     14,004,500        170,961,822   

Oversea-Chinese Banking Corp. Ltd.

     19,839,000        161,885,599   

United Overseas Bank Ltd.

     9,661,000        148,924,968   
   

 

 

  
      481,772,389   

BEVERAGES — 3.34%

  

  

Fraser and Neave Ltd.

     7,044,000        53,665,862   
   

 

 

  
      53,665,862   

DISTRIBUTION & WHOLESALE — 3.03%

  

  

Jardine Cycle & Carriage Ltd.a

     1,167,000        48,650,535   
   

 

 

  
      48,650,535   

DIVERSIFIED FINANCIAL SERVICES — 2.68%

  

  

Singapore Exchange Ltd.

     7,002,000        42,993,496   
   

 

 

  
      42,993,496   

ENGINEERING & CONSTRUCTION — 4.36%

  

  

SembCorp Industries Ltd.

     7,002,000        29,925,736   

Singapore Technologies Engineering Ltd.

     11,670,000        40,070,693   
   

 

 

  
      69,996,429   

ENTERTAINMENT — 3.70%

  

  

Genting Singapore PLC

     46,680,400        59,399,418   
   

 

 

  
      59,399,418   

FOOD — 3.48%

  

  

Olam International Ltd.a

     11,670,000        15,698,283   

Wilmar International Ltd.

     14,004,000        40,164,977   
   

 

 

  
      55,863,260   

HOLDING COMPANIES — DIVERSIFIED — 8.65%

  

Keppel Corp. Ltd.

     11,670,100        109,747,497   

Noble Group Ltd.

     30,342,999        29,049,851   
   

 

 

  
      138,797,348   

LODGING — 1.97%

  

  

City Developments Ltd.a

     3,501,000        31,594,563   
   

 

 

  
      31,594,563   
Security   Shares     Value  
   

MEDIA — 2.58%

  

  

Singapore Press Holdings Ltd.a

     12,265,000      $ 41,420,077   
   

 

 

  
      41,420,077   

REAL ESTATE — 9.47%

  

  

CapitaLand Ltd.

     19,839,000        62,670,564   

CapitaMalls Asia Ltd.

     10,503,000        17,649,962   

Global Logistic Properties Ltd.

     16,338,000        33,527,384   

Keppel Land Ltd.

     5,835,000        19,611,068   

UOL Group Ltd.

     3,501,000        18,413,662   
   

 

 

  
      151,872,640   

REAL ESTATE INVESTMENT TRUSTS — 4.98%

  

  

Ascendas REIT

     14,004,335        29,077,876   

CapitaCommercial Trusta

     15,171,000        20,346,484   

CapitaMall Trust Management Ltd.

     17,505,800        30,407,974   
   

 

 

  
      79,832,334   

SHIPBUILDING — 2.00%

  

  

SembCorp Marine Ltd.a

     5,835,000        21,166,754   

Yangzijiang Shipbuilding (Holdings) Ltd.a

     14,004,000        10,918,085   
   

 

 

  
      32,084,839   

TELECOMMUNICATIONS — 11.70%

  

  

Singapore Telecommunications Ltd.

     61,851,568        171,900,136   

StarHub Ltd.a

     4,668,000        15,801,996   
   

 

 

  
      187,702,132   

TRANSPORTATION — 3.36%

  

  

ComfortDelGro Corp. Ltd.

     14,004,000        21,723,030   

Hutchison Port Holdings Trusta

     39,678,000        32,139,180   
   

 

 

  
      53,862,210   
   

 

 

  

TOTAL COMMON STOCKS

  

  

(Cost: $1,405,035,539)

  

     1,600,611,522   

SHORT-TERM INVESTMENTS — 4.01%

  

MONEY MARKET FUNDS — 4.01%

  

  

BlackRock Cash Funds: Institutional,
SL Agency Shares

   

  

0.21%b,c,d

     57,817,034        57,817,034   

BlackRock Cash Funds: Prime,
SL Agency Shares

   

  

0.18%b,c,d

     4,186,144        4,186,144   
 

 

42    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI SINGAPORE INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

BlackRock Cash Funds: Treasury,
SL Agency Shares

   

  

0.04%b,c

     2,356,937      $ 2,356,937   
   

 

 

  
      64,360,115   
   

 

 

  

TOTAL SHORT-TERM INVESTMENTS

  

  

(Cost: $64,360,115)

  

     64,360,115   
   

 

 

  

TOTAL INVESTMENTS
IN SECURITIES — 103.77%

   

  

(Cost: $1,469,395,654)

       1,664,971,637   

Other Assets, Less Liabilities — (3.77)%

  

     (60,450,042 ) 
   

 

 

  

NET ASSETS — 100.00%

  

   $ 1,604,521,595   
   

 

 

  

 

a 

All or a portion of this security represents a security on loan. See Note 5.

b 

Affiliated issuer. See Note 2.

c 

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

d 

All or a portion of this security represents an investment of securities lending collateral. See Note 5.

Financial futures contracts purchased as of February 28, 2013 were as follows:

 

Number of
Contracts		      Issue
(Expiration)		   Exchange   Notional
Value		     Net
Unrealized
Appreciation
(Depreciation)		  
  70       SGX MSCI Singapore Index (Mar. 2013)   Singapore     $4,175,964        $(30,539)   
                              

See notes to financial statements.

 

 

SCHEDULES OF INVESTMENTS

      43   

Table of Contents

Schedule of Investments (Unaudited)

iSHARES® MSCI SOUTH KOREA CAPPED INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

COMMON STOCKS — 97.37%

  

ADVERTISING — 0.43%

  

  

Cheil Worldwide Inc.a

     652,190      $ 14,455,300   
   

 

 

  
      14,455,300   

AEROSPACE & DEFENSE — 0.58%

  

  

Korea Aerospace Industries Ltd.b

     234,910        5,271,685   

Samsung Techwin Co. Ltd.b

     240,903        14,505,461   
   

 

 

  
      19,777,146   

AGRICULTURE — 1.42%

  

  

KT&G Corp.

     676,356        48,220,796   
   

 

 

  
      48,220,796   

AIRLINES — 0.30%

  

  

Korean Air Lines Co. Ltd.a

     248,680        10,150,907   
   

 

 

  
      10,150,907   

AUTO MANUFACTURERS — 7.68%

  

  

Hyundai Motor Co.

     893,557        179,895,575   

Kia Motors Corp.

     1,569,488        81,023,600   
   

 

 

  
      260,919,175   

AUTO PARTS & EQUIPMENT — 4.84%

  

  

Hankook Tire Co. Ltd.

     490,952        22,352,581   

Hyundai Mobis Co. Ltd.

     401,459        116,045,222   

Hyundai Wia Corp.

     106,593        15,651,917   

Mando Corp.b

     85,040        10,288,126   
   

 

 

  
      164,337,846   

BANKS — 0.78%

  

  

Industrial Bank of Korea

     1,149,920        13,911,714   

Korea Exchange Banka

     1,803,220        12,656,221   
   

 

 

  
      26,567,935   

BIOTECHNOLOGY — 0.55%

  

  

Celltrion Inc.b

     760,310        18,852,837   
   

 

 

  
      18,852,837   

CHEMICALS — 4.01%

  

  

Hanwha Chemical Corp.b

     623,712        11,462,488   

KCC Corp.

     29,645        7,802,577   

LG Chem Ltd.

     272,415        74,592,891   

Lotte Chemical Corp.

     116,251        25,551,440   

OCI Co. Ltd.b

     103,982        16,660,935   
   

 

 

  
      136,070,331   
Security   Shares     Value  
   

COMMERCIAL SERVICES — 0.29%

  

  

S1 Corp.

     154,683      $ 9,928,168   
   

 

 

  
      9,928,168   

COMPUTERS — 0.47%

  

  

SK C&C Co. Ltd.

     166,113        15,800,927   
   

 

 

  
      15,800,927   

COSMETICS & PERSONAL CARE — 1.91%

  

  

AmorePacific Corp.

     21,650        20,473,853   

AmorePacific Group

     25,450        9,918,408   

LG Household & Health Care Ltd.b

     59,835        34,315,365   
   

 

 

  
      64,707,626   

DISTRIBUTION & WHOLESALE — 2.17%

  

  

Daewoo International Corp.b

     304,763        10,793,675   

Hanwha Corp.

     316,190        10,190,964   

Samsung C&T Corp.

     749,759        45,837,551   

SK Networks Co. Ltd.

     911,310        6,724,417   
   

 

 

  
      73,546,607   

DIVERSIFIED FINANCIAL SERVICES — 10.12%

  

  

BS Financial Group Inc.

     925,412        13,374,920   

Daewoo Securities Co. Ltd.

     1,147,837        12,985,481   

DGB Financial Group Inc.

     702,140        10,537,044   

Hana Financial Group Inc.

     1,172,561        43,748,033   

Hyundai Securities Co. Ltd.

     838,687        6,908,862   

KB Financial Group Inc.

     2,249,092        82,043,852   

Korea Investment Holdings Co. Ltd.

     276,084        11,741,203   

Mirae Asset Securities Co. Ltd.

     186,512        7,484,078   

Samsung Card Co. Ltd.

     284,140        10,220,722   

Samsung Securities Co. Ltd.

     383,101        20,307,988   

Shinhan Financial Group Co. Ltd.

     2,154,967        84,879,221   

Woori Finance Holdings Co. Ltd.

     2,307,960        28,028,235   

Woori Investment & Securities Co. Ltd.

     964,018        11,351,077   
   

 

 

  
      343,610,716   

ELECTRIC — 1.38%

  

  

Korea Electric Power Corp.a

     1,553,550        46,843,587   
   

 

 

  
      46,843,587   

ELECTRICAL COMPONENTS & EQUIPMENT — 1.76%

  

LG Electronics Inc.b

     628,843        45,472,174   

LG Innotek Co. Ltd.a,b

     110,539        7,727,752   

LS Industrial Systems Co. Ltd.

     108,001        6,662,634   
   

 

 

  
      59,862,560   
 

 

44    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI SOUTH KOREA CAPPED INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

ELECTRONICS — 2.20%

  

  

LG Display Co. Ltd.a

     1,452,462      $ 40,978,657   

Samsung Electro-Mechanics Co. Ltd.

     381,995        33,690,137   
   

 

 

  
      74,668,794   

ENGINEERING & CONSTRUCTION — 2.53%

  

  

Daelim Industrial Co. Ltd.

     165,390        14,769,896   

Daewoo Engineering & Construction Co. Ltd.a,b

     759,084        6,372,289   

GS Engineering & Construction Corp.

     259,838        13,149,976   

Hyundai Engineering & Construction Co. Ltd.

     406,702        25,690,593   

Samsung Engineering Co. Ltd.b

     182,906        26,012,998   
   

 

 

  
      85,995,752   

ENVIRONMENTAL CONTROL — 0.46%

  

  

Coway Co. Ltd.a

     339,960        15,650,734   
   

 

 

  
      15,650,734   

FOOD — 1.46%

  

  

CJ CheilJedang Corp.

     51,083        18,233,398   

Lotte Confectionery Co. Ltd.b

     4,613        7,791,820   

ORION Corp.

     23,881        23,598,153   
   

 

 

  
      49,623,371   

GAS — 0.32%

  

  

Korea Gas Corp.

     163,930        10,824,459   
   

 

 

  
      10,824,459   

HOLDING COMPANIES — DIVERSIFIED — 0.69%

  

  

CJ Corp.

     98,595        13,612,497   

LS Corp.

     121,011        9,778,554   

Neo Holdings Co. Ltd.a,c

     49,473        —   
   

 

 

  
      23,391,051   

HOME BUILDERS — 0.29%

  

  

Hyundai Development Co.b

     436,469        9,976,319   
   

 

 

  
      9,976,319   

HOME FURNISHINGS — 1.03%

  

  

LG Corp.

     573,808        34,921,568   
   

 

 

  
      34,921,568   

INSURANCE — 3.30%

  

  

Dongbu Insurance Co. Ltd.

     270,099        11,835,890   

Hanwha Life Insurance Co. Ltd.

     1,121,880        7,501,130   

Hyundai Marine & Fire Insurance Co. Ltd.

     414,360        12,034,836   
Security   Shares     Value  
   

Samsung Fire & Marine Insurance Co. Ltd.

     212,326      $ 44,707,435   

Samsung Life Insurance Co. Ltd.

     374,678        35,985,974   
   

 

 

  
      112,065,265   

INTERNET — 2.18%

  

  

NCsoft Corp.b

     105,203        13,893,315   

NHN Corp.b

     247,842        60,196,658   
   

 

 

  
      74,089,973   

IRON & STEEL — 4.46%

  

  

Hyundai Steel Co.

     336,328        26,432,261   

POSCO

     382,921        125,008,726   
   

 

 

  
      151,440,987   

LODGING — 0.59%

  

  

Kangwon Land Inc.

     660,632        20,041,799   
   

 

 

  
      20,041,799   

MACHINERY — 0.69%

  

  

Doosan Heavy Industries & Construction Co. Ltd.

     322,446        13,057,749   

Doosan Infracore Co. Ltd.a,b

     718,430        10,482,944   
   

 

 

  
      23,540,693   

MANUFACTURING — 1.06%

  

  

Cheil Industries Inc.

     252,202        20,542,762   

Doosan Corp.

     50,255        5,987,020   

Kumho Petro Chemical Co. Ltd.b

     94,824        9,589,018   
   

 

 

  
      36,118,800   

METAL FABRICATE & HARDWARE — 0.47%

  

  

Hyosung Corp.

     149,798        7,816,210   

Hyundai Hysco Co. Ltd.

     244,586        8,154,184   
   

 

 

  
      15,970,394   

MINING — 0.57%

  

  

Korea Zinc Co. Ltd.

     55,293        19,199,934   
   

 

 

  
      19,199,934   

OIL & GAS — 3.93%

  

  

GS Holdings Corp.

     330,537        21,306,751   

S-Oil Corp.

     288,613        26,627,053   

SK Holdings Co. Ltd.

     158,587        25,776,383   

SK Innovation Co. Ltd.

     363,314        59,723,309   
   

 

 

  
      133,433,496   

PHARMACEUTICALS — 0.30%

  

  

Yuhan Corp.

     61,073        10,067,675   
   

 

 

  
      10,067,675   
 

 

SCHEDULES OF INVESTMENTS

      45   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI SOUTH KOREA CAPPED INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

RETAIL — 2.16%

  

  

E-Mart Co. Ltd.

     129,254      $ 26,380,194   

Hyundai Department Store Co. Ltd.

     94,800        13,219,865   

Lotte Shopping Co. Ltd.

     67,561        24,270,985   

Shinsegae Co. Ltd.

     45,629        9,544,449   
   

 

 

  
      73,415,493   

SEMICONDUCTORS — 24.14%

  

  

Samsung Electronics Co. Ltd.

     521,711        743,907,634   

SK Hynix Inc.a,b

     3,108,910        76,084,423   
   

 

 

  
      819,992,057   

SHIPBUILDING — 3.27%

  

  

Daewoo Shipbuilding & Marine Engineering Co. Ltd.

     635,312        17,630,850   

Hyundai Heavy Industries Co. Ltd.

     249,168        49,358,425   

Hyundai Mipo Dockyard Co. Ltd.

     78,440        8,547,937   

Samsung Heavy Industries Co. Ltd.

     995,600        35,536,619   
   

 

 

  
      111,073,831   

TELECOMMUNICATIONS — 1.89%

  

  

KT Corp.

     293,962        9,718,874   

LG Uplus Corp.a

     1,646,945        12,928,250   

Samsung SDI Co. Ltd.

     221,809        28,473,161   

SK Telecom Co. Ltd.

     78,825        12,994,032   
   

 

 

  
      64,114,317   

TRANSPORTATION — 0.69%

    

Hyundai Glovis Co. Ltd.

     92,727        17,597,856   

Hyundai Merchant Marine Co. Ltd.a,b

     364,424        5,990,578   
   

 

 

  
      23,588,434   
   

 

 

  

TOTAL COMMON STOCKS

  

  

(Cost: $1,605,868,124)

  

     3,306,857,660   

PREFERRED STOCKS — 1.84%

  

AUTO MANUFACTURERS — 0.86%

  

  

Hyundai Motor Co. Ltd.

     156,198        10,443,733   

Hyundai Motor Co. Ltd. Series 2

     263,808        18,978,730   
   

 

 

  
      29,422,463   

CHEMICALS — 0.15%

    

LG Chem Ltd.

     56,271        4,983,620   
   

 

 

  
      4,983,620   
Security   Shares     Value  
   

SEMICONDUCTORS — 0.83%

    

Samsung Electronics Co. Ltd.

     34,570      $ 28,094,660   
   

 

 

  
      28,094,660   
   

 

 

  

TOTAL PREFERRED STOCKS

  

  

(Cost: $28,992,362)

  

     62,500,743   

SHORT-TERM INVESTMENTS — 2.93%

  

MONEY MARKET FUNDS — 2.93%

  

  

BlackRock Cash Funds: Institutional,
SL Agency Shares

   

  

0.21%d,e,f

     89,601,493        89,601,493   

BlackRock Cash Funds: Prime,
SL Agency Shares

   

  

0.18%d,e,f

     6,487,444        6,487,444   

BlackRock Cash Funds: Treasury,
SL Agency Shares

   

  

0.04%d,e

     3,529,802        3,529,802   
   

 

 

  
      99,618,739   
   

 

 

  

TOTAL SHORT-TERM INVESTMENTS

  

  

(Cost: $99,618,739)

  

     99,618,739   
   

 

 

  

TOTAL INVESTMENTS
IN SECURITIES — 102.14%

    

(Cost: $1,734,479,225)

       3,468,977,142   

Other Assets, Less Liabilities — (2.14)%

  

     (72,833,551 ) 
   

 

 

  

NET ASSETS — 100.00%

  

   $ 3,396,143,591   
   

 

 

  

 

a 

Non-income earning security.

b 

All or a portion of this security represents a security on loan. See Note 5.

c 

Security valued using Level 3 inputs in accordance with management’s fair valuation policy. See Note 1.

d 

Affiliated issuer. See Note 2.

e 

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

f 

All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

 

 

46    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited)

iSHARES® MSCI TAIWAN INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

COMMON STOCKS — 99.79%

  

AIRLINES — 0.49%

  

China Airlines Ltd.a

     17,119,761      $ 7,040,301   

EVA Airways Corp.a

     10,070,212        6,330,691   
   

 

 

  
      13,370,992   

APPAREL — 1.35%

    

Far Eastern New Century Corp.

     20,140,031        22,335,193   

Pou Chen Corp.

     14,098,103        14,304,111   
   

 

 

  
      36,639,304   

AUTO MANUFACTURERS — 0.54%

  

  

China Motor Co. Ltd.

     4,028,000        3,760,996   

Yulon Motor Co. Ltd.b

     6,042,362        10,815,210   
   

 

 

  
      14,576,206   

AUTO PARTS & EQUIPMENT — 1.38%

  

  

Cheng Shin Rubber Industry Co. Ltd.

     12,084,757        32,832,704   

Nan Kang Rubber Tire Co. Ltd.b

     4,028,404        4,650,796   
   

 

 

  
      37,483,500   

BANKS — 0.83%

  

  

Chang Hwa Commercial Bank Ltd.

     28,196,155        16,490,091   

Taiwan Business Bank Ltd.a

     19,211,556        5,996,630   
   

 

 

  
      22,486,721   

BUILDING MATERIALS — 1.76%

  

  

Asia Cement Corp.

     13,091,181        16,327,295   

Taiwan Cement Corp.

     20,140,504        25,832,039   

Taiwan Glass Industry Corp.b

     6,042,693        5,713,432   
   

 

 

  
      47,872,766   

CHEMICALS — 7.90%

  

  

China Petrochemical Development Corp.

     10,070,540        6,229,060   

Eternal Chemical Co. Ltd.

     4,209,839        3,682,447   

Formosa Chemicals & Fibre Corp.

     20,140,204        51,323,865   

Formosa Plastics Corp.

     26,182,768        66,192,763   

LCY Chemical Corp.

     3,021,048        3,849,312   

Nan Ya Plastics Corp.

     31,217,860        59,875,490   

Oriental Union Chemical Corp.

     3,467,000        3,850,729   

Taiwan Fertilizer Co. Ltd.

     5,035,000        12,202,872   

TSRC Corp.b

     3,509,720        7,216,656   
   

 

 

  
      214,423,194   
Security   Shares     Value  
   

COMPUTERS — 8.19%

  

  

Acer Inc.a,b

     16,112,841      $ 14,365,855   

Advantech Co. Ltd.

     2,014,771        8,964,649   

ASUSTeK Computer Inc.b

     4,439,857        53,877,219   

Chicony Electronics Co. Ltd.

     3,021,135        7,912,703   

Clevo Co.b

     3,255,991        4,571,218   

Compal Electronics Inc.b

     27,189,554        19,017,520   

Foxconn Technology Co. Ltd.b

     5,035,442        13,833,399   

Innolux Corp.a,b

     44,308,869        24,494,479   

Inventec Corp.

     15,105,868        6,008,435   

Lite-On Technology Corp.

     13,149,639        20,278,630   

Quanta Computer Inc.b

     16,112,240        34,379,006   

Wistron Corp.

     13,091,404        14,562,430   
   

 

 

  
      222,265,543   

DIVERSIFIED FINANCIAL SERVICES — 11.27%

  

  

Capital Securities Corp.

     11,077,043        4,200,588   

China Development Financial Holding Corp.a

     80,560,508        23,978,200   

Chinatrust Financial Holding Co. Ltd.b

     73,511,672        43,487,767   

E.Sun Financial Holding Co. Ltd.b

     25,358,553        15,172,478   

First Financial Holding Co. Ltd.

     41,287,536        26,303,555   

Fubon Financial Holding Co. Ltd.

     37,259,515        50,237,831   

Hua Nan Financial Holdings Co. Ltd.

     33,231,410        19,434,883   

Mega Financial Holding Co. Ltd.

     52,364,972        43,157,217   

SinoPac Financial Holdings Co. Ltd.

     39,431,979        17,943,866   

Taishin Financial Holdings Co. Ltd.

     43,301,361        17,661,216   

Taiwan Cooperative Financial Holding Co. Ltd.

     30,210,599        17,311,789   

Yuanta Financial Holding Co. Ltd.

     52,364,453        27,094,344   
   

 

 

  
      305,983,734   

ELECTRICAL COMPONENTS & EQUIPMENT — 2.40%

  

Delta Electronics Inc.

     12,084,180        45,010,429   

Hermes Microvision Inc.

     189,000        3,847,977   

Pacific Electric Wire & Cable Co. Ltd.a,c

     197        —   

Simplo Technology Co. Ltd.b

     2,014,835        8,930,976   

Walsin Lihwa Corp.a

     21,147,069        7,270,831   
   

 

 

  
      65,060,213   

ELECTRONICS — 11.88%

  

  

AU Optronics Corp.a,b

     49,343,830        21,456,370   
 

 

SCHEDULES OF INVESTMENTS

      47   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI TAIWAN INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Cheng Uei Precision Industry Co. Ltd.b

     2,014,761      $ 3,809,957   

E Ink Holdings Inc.b

     5,035,000        3,861,131   

Hon Hai Precision Industry Co. Ltd.

     65,455,899        180,262,146   

Kinsus Interconnect Technology Corp.

     2,014,043        6,347,666   

Pegatron Corp.a,b

     10,070,037        13,577,654   

Phison Electronics Corp.b

     1,007,698        7,574,761   

Radiant Opto-Electronics Corp.b

     2,721,450        9,815,622   

Synnex Technology International Corp.b

     8,056,538        16,294,213   

TPK Holding Co. Ltd.b

     1,458,466        27,629,073   

Tripod Technology Corp.b

     3,021,061        6,262,797   

Unimicron Technology Corp.

     8,056,794        7,658,524   

Wintek Corp.a,b

     11,077,926        5,227,815   

WPG Holdings Co. Ltd.b

     9,063,744        10,296,064   

Ya Hsin Industrial Co. Ltd.a,c

     6,845,461        2   

Zhen Ding Technology Holding Ltd.b

     1,071,450        2,430,640   
   

 

 

  
      322,504,435   

ENGINEERING & CONSTRUCTION — 0.29%

  

  

CTCI Corp.

     4,028,000        8,024,364   
   

 

 

  
      8,024,364   

FOOD — 2.09%

  

  

Standard Foods Corp.b

     2,014,920        5,847,829   

Uni-President Enterprises Co.

     27,196,547        50,879,219   
   

 

 

  
      56,727,048   

INSURANCE — 3.03%

  

  

Cathay Financial Holding Co. Ltd.

     46,322,987        58,710,812   

China Life Insurance Co. Ltd.a

     12,084,921        11,569,001   

Shin Kong Financial Holding Co. Ltd.a

     39,273,411        11,901,234   
   

 

 

  
      82,181,047   

IRON & STEEL — 2.80%

  

  

China Steel Corp.b

     73,604,701        67,485,138   

Feng Hsin Iron & Steel Co. Ltd.

     2,014,050        3,509,898   

Tung Ho Steel Enterprise Corp.b

     5,035,882        4,922,744   
   

 

 

  
      75,917,780   

LEISURE TIME — 0.64%

  

  

Giant Manufacturing Co. Ltd.

     2,014,590        11,035,035   

Merida Industry Co. Ltd.

     1,313,000        6,395,379   
   

 

 

  
      17,430,414   
Security   Shares     Value  
   

LODGING — 0.09%

  

  

Formosa International Hotels Corp.

     196,020      $ 2,421,631   
   

 

 

  
      2,421,631   

MACHINERY — 0.33%

  

  

Teco Electric and Machinery Co. Ltd.

     11,077,092        8,849,277   
   

 

 

  
      8,849,277   

MANUFACTURING — 1.05%

  

  

Airtac International Groupb

     468,000        2,729,139   

Hiwin Technologies Corp.b

     1,091,854        9,017,047   

Largan Precision Co. Ltd.

     626,794        16,902,405   
   

 

 

  
      28,648,591   

METAL FABRICATE & HARDWARE — 0.60%

  

  

Catcher Technology Co. Ltd.b

     3,581,743        16,178,301   
   

 

 

  
      16,178,301   

OIL & GAS — 0.77%

  

  

Formosa Petrochemical Corp.b

     7,493,950        20,840,034   
   

 

 

  
      20,840,034   

PHARMACEUTICALS — 0.18%

  

  

ScinoPharm Taiwan Ltd.

     1,963,000        4,817,097   
   

 

 

  
      4,817,097   

REAL ESTATE — 1.04%

  

  

Chailease Holding Co. Ltd.

     4,028,000        11,296,567   

Farglory Land Development Co. Ltd.b

     2,014,000        3,822,096   

Highwealth Construction Corp.

     2,014,200        4,209,475   

Ruentex Development Co. Ltd.b

     4,028,665        8,813,320   
   

 

 

  
      28,141,458   

RETAIL — 1.73%

  

  

Far Eastern Department Stores Co. Ltd.b

     6,042,090        5,712,862   

Hotai Motor Co. Ltd.b

     1,535,000        11,693,661   

President Chain Store Corp.

     4,028,215        22,268,460   

Ruentex Industries Ltd.b

     3,021,550        7,272,131   
   

 

 

  
      46,947,114   

SEMICONDUCTORS — 29.44%

  

  

Advanced Semiconductor Engineering Inc.

     39,305,448        32,592,791   

Epistar Corp.b

     5,035,047        9,775,966   

Macronix International Co. Ltd.b

     23,161,448        6,597,146   

MediaTek Inc.b

     7,518,632        84,521,726   
 

 

48    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI TAIWAN INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

MStar Semiconductor Inc.b

     1,371,634      $ 10,310,430   

Novatek Microelectronics Corp. Ltd.

     3,337,544        13,950,262   

Powertech Technology Inc.b

     5,035,036        7,323,473   

Realtek Semiconductor Corp.

     3,048,746        7,255,371   

Richtek Technology Corp.

     1,007,416        6,163,383   

Siliconware Precision Industries Co. Ltd.

     19,133,214        20,541,448   

Taiwan Semiconductor Manufacturing Co. Ltd.

     161,120,882        567,546,969   

Transcend Information Inc.b

     1,007,905        2,870,847   

United Microelectronics Corp.b

     79,553,501        29,765,691   
   

 

 

  
      799,215,503   

TELECOMMUNICATIONS — 6.80%

  

  

Chunghwa Telecom Co. Ltd.

     25,175,648        78,242,959   

Far EasTone Telecommunications Co. Ltd.

     10,070,259        23,320,135   

HTC Corp.b

     4,743,884        44,294,267   

Taiwan Mobile Co. Ltd.

     11,077,609        38,647,381   
   

 

 

  
      184,504,742   

TEXTILES — 0.18%

  

  

Formosa Taffeta Co. Ltd.

     5,035,515        4,879,951   
   

 

 

  
      4,879,951   

TRANSPORTATION — 0.74%

  

  

Evergreen Marine Corp. Ltd.a

     11,077,766        7,076,118   

U-Ming Marine Transport Corp.

     3,021,800        4,685,514   

Wan Hai Lines Ltd.a

     7,049,854        3,814,072   

Yang Ming Marine Transport Corp.a

     9,376,635        4,440,757   
   

 

 

  
      20,016,461   
   

 

 

  

TOTAL COMMON STOCKS
(Cost: $1,752,162,554)

       2,708,407,421   

SHORT-TERM INVESTMENTS — 9.06%

  

MONEY MARKET FUNDS — 9.06%

    

BlackRock Cash Funds: Institutional,
SL Agency Shares

    

0.21%d,e,f

     224,903,877        224,903,877   

BlackRock Cash Funds: Prime, SL Agency Shares

    

0.18%d,e,f

     16,283,783        16,283,783   
Security   Shares     Value  

BlackRock Cash Funds: Treasury, SL Agency Shares

    

0.04%d,e

     4,825,986      $ 4,825,986   
   

 

 

  
      246,013,646   
   

 

 

  

TOTAL SHORT-TERM INVESTMENTS (Cost: $246,013,646)

       246,013,646   
   

 

 

  

TOTAL INVESTMENTS
IN SECURITIES — 108.85%
(Cost: $1,998,176,200)

       2,954,421,067   

Other Assets, Less Liabilities — (8.85)%

  

     (240,188,680 ) 
   

 

 

  

NET ASSETS — 100.00%

     $ 2,714,232,387   
   

 

 

  

 

a 

Non-income earning security.

b 

All or a portion of this security represents a security on loan. See Note 5.

c 

Security valued using Level 3 inputs in accordance with management’s fair valuation policy. See Note 1.

d 

Affiliated issuer. See Note 2.

e 

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

f 

All or a portion of this security represents an investment of securities lending collateral. See Note 5.

Financial futures contracts purchased as of February 28, 2013 were as follows:

 

Number of
Contracts		      Issue
(Expiration)		   Exchange   Notional
Value		     Net
Unrealized
Appreciation
(Depreciation)		  
  46       MSCI Taiwan Index (Mar. 2013)   Singapore     $1,304,560        $(24,962)   
                              

See notes to financial statements.

 

 

SCHEDULES OF INVESTMENTS

      49   

Table of Contents

Schedule of Investments (Unaudited)

iSHARES® MSCI THAILAND CAPPED INVESTABLE MARKET INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

COMMON STOCKS — 99.81%

  

AIRLINES — 0.47%

  

Thai Airways International PCL NVDRa

     6,001,666      $ 4,942,548   
   

 

 

  
      4,942,548   

AUTO PARTS & EQUIPMENT — 0.22%

  

  

Somboon Advance Technology PCL NVDR

     1,789,500        2,255,672   
   

 

 

  
      2,255,672   

BANKS — 32.37%

  

  

Bangkok Bank PCL Foreign

     6,707,300        52,305,667   

Bangkok Bank PCL NVDR

     4,589,700        33,786,363   

Bank of Ayudhya PCL NVDR

     16,797,600        19,479,570   

Kasikornbank PCL Foreign

     9,301,200        68,156,693   

Kasikornbank PCL NVDR

     5,755,700        41,015,408   

Kiatnakin Bank PCL NVDR

     3,486,073        7,177,209   

Krung Thai Bank PCL NVDR

     29,945,200        25,667,314   

LH Financial Group PCL NVDR

     35,858,943        1,771,854   

Siam Commercial Bank PCL NVDR

     13,261,500        79,346,118   

Thanachart Capital PCL NVDR

     5,784,900        8,750,269   
   

 

 

  
      337,456,465   

BUILDING MATERIALS — 0.56%

  

  

Dynasty Ceramic PCL NVDR

     1,575,200        3,057,741   

TPI Polene PCL NVDR

     5,666,100        2,818,766   
   

 

 

  
      5,876,507   

CHEMICALS — 5.71%

  

  

Indorama Ventures PCL NVDR

     12,709,410        10,167,528   

IRPC PCL NVDR

     90,040,700        12,893,223   

PTT Global Chemical PCL NVDR

     11,132,307        29,561,420   

Siam Gas and Petrochemicals PCL NVDR

     3,840,900        1,872,035   

Sri Trang Agro-Industry PCL NVDR

     6,290,871        3,467,909   

Vinythai PCL NVDR

     2,489,365        1,606,582   
   

 

 

  
      59,568,697   

COAL — 1.22%

  

  

Banpu PCL NVDR

     967,950        12,721,629   
   

 

 

  
      12,721,629   

COMMERCIAL SERVICES — 0.63%

  

  

Bangkok Aviation Fuel PCL NVDR

     1,419,100        1,049,419   

Bangkok Expressway PCL NVDR

     3,849,700        5,564,272   
   

 

 

  
      6,613,691   
Security   Shares     Value  
   

COMPUTERS — 0.29%

  

  

Cal-Comp Electronics (Thailand) PCL NVDR

     24,152,900      $ 3,068,839   
   

 

 

  
      3,068,839   

DISTRIBUTION & WHOLESALE — 0.22%

  

Energy Earth PCL NVDRa

     8,609,200        2,344,018   
   

 

 

  
      2,344,018   

DIVERSIFIED FINANCIAL SERVICES — 0.67%

  

  

Thitikorn PCL NVDR

     1,157,400        711,947   

TISCO Financial Group PCL NVDR

     3,459,300        6,279,065   
   

 

 

  
      6,991,012   

ELECTRIC — 1.24%

  

  

Glow Energy PCL NVDR

     4,486,000        12,967,933   
   

 

 

  
      12,967,933   

ELECTRONICS — 1.06%

  

  

Delta Electronics (Thailand) PCL NVDR

     4,705,544        6,010,443   

Hana Microelectronics PCL NVDR

     5,006,600        4,249,299   

SVI PCL NVDRa

     5,393,000        801,246   
   

 

 

  
      11,060,988   

ENGINEERING & CONSTRUCTION — 2.81%

  

  

Airports of Thailand PCL NVDR

     3,564,700        14,138,978   

CH. Karnchang PCL NVDR

     4,501,500        3,820,601   

Italian-Thai Development PCL NVDRa

     15,186,300        3,292,492   

Sino-Thai Engineering & Construction PCL NVDR

     5,624,400        7,089,580   

Sriracha Construction PCL NVDR

     507,100        971,586   
   

 

 

  
      29,313,237   

ENTERTAINMENT — 0.32%

  

  

Major Cineplex Group PCL NVDR

     4,630,400        3,315,211   
   

 

 

  
      3,315,211   

FOOD — 3.45%

  

  

Charoen Pokphand Foods PCL NVDR

     26,246,900        28,673,084   

GFPT PCL NVDR

     4,909,900        1,312,057   

Khon Kaen Sugar Industry PCL NVDR

     5,177,000        2,697,261   

Thai Vegetable Oil PCL NVDR

     3,928,953        3,301,641   
   

 

 

  
      35,984,043   
 

 

50    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI THAILAND CAPPED INVESTABLE MARKET INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

HEALTH CARE — SERVICES — 2.62%

  

  

Bangkok Chain Hospital PCL NVDR

     8,814,300      $ 3,525,720   

Bangkok Dusit Medical Services PCL NVDR

     2,611,600        13,079,946   

Bumrungrad Hospital PCL NVDR

     3,265,776        9,605,224   

Vibhavadi Medical Center PCL NVDR

     2,836,200        1,058,212   
   

 

 

  
      27,269,102   

HOLDING COMPANIES — DIVERSIFIED — 4.50%

  

  

Siam Cement PCL Foreign

     2,199,300        35,188,800   

Siam Cement PCL NVDR

     749,600        11,691,240   
   

 

 

  
      46,880,040   

HOME BUILDERS — 0.80%

  

  

Asian Property Development PCL NVDR

     9,746,760        3,374,508   

Quality Houses PCL NVDR

     37,476,441        4,988,461   
   

 

 

  
      8,362,969   

HOUSEWARES — 0.08%

  

  

Srithai Superware PCL NVDR

     779,400        785,950   
   

 

 

  
      785,950   

INSURANCE — 0.62%

  

  

Bangkok Life Assurance PCL NVDR

     2,929,400        6,424,987   
   

 

 

  
      6,424,987   

IRON & STEEL — 0.30%

  

  

G J Steel PCL NVDRa

     500,684,800        1,682,974   

G Steel PCL NVDRa

     110,248,400        1,445,273   
   

 

 

  
      3,128,247   

LODGING — 0.63%

  

  

Central Plaza Hotel PCL NVDR

     5,047,700        6,532,318   
   

 

 

  
      6,532,318   

MEDIA — 2.02%

  

  

BEC World PCL NVDR

     8,399,800        18,987,783   

MCOT PCL NVDR

     1,230,100        2,015,710   
   

 

 

  
      21,003,493   

METAL FABRICATE & HARDWARE — 0.33%

  

  

STP & I PCL NVDR

     1,164,900        3,406,598   
   

 

 

  
      3,406,598   

OIL & GAS — 14.83%

  

  

Bangchak Petroleum PCL NVDR

     3,914,900        5,099,240   

Esso (Thailand) PCL NVDR

     10,995,000        3,769,714   
Security   Shares     Value  
   

PTT Exploration & Production PCL NVDR

     9,881,684      $ 52,480,876   

PTT PCL NVDR

     6,488,100        76,330,588   

Thai Oil PCL NVDR

     7,190,300        16,918,353   
   

 

 

  
      154,598,771   

PACKAGING & CONTAINERS — 0.18%

  

  

Polyplex PCL NVDR

     3,866,450        1,858,495   
   

 

 

  
      1,858,495   

REAL ESTATE — 6.17%

  

  

Amata Corp. PCL NVDR

     5,352,200        4,587,600   

Asset Corp. PCL NVDR

     2,304,600        2,633,829   

Bangkok Land PCL NVDR

     71,594,100        5,053,701   

Central Pattana PCL NVDR

     5,398,000        17,418,756   

Golden Land Property Development PCL NVDRa

     2,636,100        1,373,430   

Hemaraj Land and Development PCL NVDR

     44,838,500        6,390,428   

LPN Development PCL NVDR

     5,480,347        4,605,334   

Pruksa Real Estate PCL NVDR

     6,267,180        6,319,845   

Rojana Industrial Park PCL NVDRa

     2,071,000        904,975   

Sansiri PCL NVDR

     29,631,528        4,980,089   

Siam Future Development PCL NVDR

     6,089,000        2,517,469   

Supalai PCL NVDR

     5,538,000        4,039,482   

Ticon Industrial Connection PCL NVDR

     4,750,093        3,464,774   
   

 

 

  
      64,289,712   

RETAIL — 6.61%

  

  

CP All PCL NVDR

     33,111,900        52,589,488   

Siam Global House PCL NVDR

     4,922,240        4,219,063   

Siam Makro PCL NVDR

     741,400        12,061,768   
   

 

 

  
      68,870,319   

TELECOMMUNICATIONS — 7.26%

  

  

Advanced Information Service PCL NVDR

     8,722,100        60,688,225   

Jasmine International PCL NVDR

     33,338,400        7,564,175   

Loxley PCL NVDR

     4,044,600        883,694   

Samart Corp. PCL NVDR

     4,700,700        3,017,928   

Thaicom PCL NVDRa

     3,725,200        3,506,071   
   

 

 

  
      75,660,093   
 

 

SCHEDULES OF INVESTMENTS

      51   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI THAILAND CAPPED INVESTABLE MARKET INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

TRANSPORTATION — 1.13%

  

  

BTS Group Holdings PCL NVDR

     27,241,349      $ 7,508,540   

Precious Shipping PCL NVDR

     2,794,500        1,540,497   

Thoresen Thai Agencies PCL NVDR

     5,091,082        2,772,287   
   

 

 

  
      11,821,324   

WATER — 0.49%

  

  

Thai Tap Water Supply PCL NVDR

     14,351,966        5,113,642   
   

 

 

  
      5,113,642   
   

 

 

  

TOTAL COMMON STOCKS
(Cost: $836,359,099)

       1,040,486,550   

WARRANTS — 0.00%

    

IRON & STEEL — 0.00%

  

  

G J Steel PCL NVDR
(Expires 01/30/20)a

     17,490,330        6   
   

 

 

  
      6   
   

 

 

  

TOTAL WARRANTS
(Cost: $0)

       6   

SHORT-TERM INVESTMENTS — 0.04%

  

MONEY MARKET FUNDS — 0.04%

    

BlackRock Cash Funds: Treasury, SL Agency Shares

    

0.04%b,c

     407,408        407,408   
   

 

 

  
      407,408   
   

 

 

  

TOTAL SHORT-TERM INVESTMENTS
(Cost: $407,408)

   

     407,408   
   

 

 

  

TOTAL INVESTMENTS
IN SECURITIES — 99.85%
(Cost: $836,766,507)

       1,040,893,964   

Other Assets, Less Liabilities — 0.15%

  

     1,539,438   
   

 

 

  

NET ASSETS — 100.00%

     $ 1,042,433,402   
   

 

 

  

NVDR — Non-Voting Depositary Receipts

 

a 

Non-income earning security.

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.

 

 

52    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Statements of Assets and Liabilities (Unaudited)

iSHARES®, INC.

February 28, 2013

 

      iShares
MSCI Australia
Index Fund		     iShares
MSCI Hong Kong
Index Fund		     iShares
MSCI Japan
Small Cap
Index Fund		  

ASSETS

       

Investments, at cost:

       

Unaffiliated

    $ 2,344,522,414      $ 3,152,798,725      $ 57,272,763   

Affiliated (Note 2)

      4,571,563        77,899,246        1,197,898   
  

 

 

    

 

 

    

 

 

  

Total cost of investments

    $ 2,349,093,977      $ 3,230,697,971      $ 58,470,661   
  

 

 

    

 

 

    

 

 

  

Investments in securities, at fair value (including securities on loana) (Note 1):

       

Unaffiliated

    $ 2,650,856,966      $ 3,519,885,447      $ 56,234,361   

Affiliated (Note 2)

      4,571,563        77,899,246        1,197,898   
  

 

 

    

 

 

    

 

 

  

Total fair value of investments

      2,655,428,529        3,597,784,693        57,432,259   

Foreign currencies, at valueb

      6,916,484        6,350,303        41,726   

Foreign currencies pledged to broker, at valueb

      667,242        1,025,862        —   

Receivables:

       

Investment securities sold

      6,937,151        36,793,869        144,655   

Dividends and interest

      16,891,595        19,468        109,053   

Futures variation margin

      865,094        63,709        —   
  

 

 

    

 

 

    

 

 

  

Total Assets

      2,687,706,095        3,642,037,904        57,727,693   
  

 

 

    

 

 

    

 

 

  

LIABILITIES

       

Payables:

       

Investment securities purchased

      6,977,831        41,544,021        179,546   

Collateral for securities on loan (Note 5)

      4,301,326        72,579,150        1,140,157   

Investment advisory fees (Note 2)

      1,011,942        1,337,193        20,126   
  

 

 

    

 

 

    

 

 

  

Total Liabilities

      12,291,099        115,460,364        1,339,829   
  

 

 

    

 

 

    

 

 

  

NET ASSETS

    $ 2,675,414,996      $ 3,526,577,540      $ 56,387,864   
  

 

 

    

 

 

    

 

 

  

Net assets consist of:

       

Paid-in capital

    $ 2,585,628,224      $ 3,559,168,891      $ 59,206,239   

Distributions in excess of net investment income

      (21,382,413 )      (2,203,448 )      (305,484 ) 

Accumulated net realized loss

      (195,857,639 )      (397,538,506 )      (1,470,697 ) 

Net unrealized appreciation (depreciation) on investments and translation of assets and liabilities in foreign currencies

      307,026,824        367,150,603        (1,042,194 ) 
  

 

 

    

 

 

    

 

 

  

NET ASSETS

    $ 2,675,414,996      $ 3,526,577,540      $ 56,387,864   
  

 

 

    

 

 

    

 

 

  

Shares outstandingc

      98,800,000        175,275,000        1,200,000   
  

 

 

    

 

 

    

 

 

  

Net asset value per share

    $ 27.08      $ 20.12      $ 46.99   
  

 

 

    

 

 

    

 

 

  

 

a 

Securities on loan with values of $4,084,175, $68,899,927 and $1,081,636, respectively. See Note 5.

b 

Cost of foreign currencies including currencies at broker, if any: $7,657,974, $7,375,769 and $41,656, respectively.

c 

$0.001 par value, number of shares authorized: 627.8 million, 250 million and 500 million, respectively.

See notes to financial statements.

 

FINANCIAL STATEMENTS

      53   

Table of Contents

Statements of Assets and Liabilities (Unaudited) (Continued)

iSHARES®, INC.

February 28, 2013

 

      iShares
MSCI Malaysia
Index Fund		     iShares
MSCI Pacific
ex-Japan
Index Fund		     iShares
MSCI Singapore
Index Fund		  

ASSETS

       

Investments, at cost:

       

Unaffiliated

    $ 467,358,554      $ 3,445,861,643      $ 1,405,035,539   

Affiliated (Note 2)

      25,782        45,822,048        64,360,115   
  

 

 

    

 

 

    

 

 

  

Total cost of investments

    $ 467,384,336      $ 3,491,683,691      $ 1,469,395,654   
  

 

 

    

 

 

    

 

 

  

Investments in securities, at fair value (including securities on loana) (Note 1):

       

Unaffiliated

    $ 904,653,804      $ 4,413,050,318      $ 1,600,611,522   

Affiliated (Note 2)

      25,782        45,822,048        64,360,115   
  

 

 

    

 

 

    

 

 

  

Total fair value of investments

      904,679,586        4,458,872,366        1,664,971,637   

Foreign currencies, at valueb

      1,092,710        9,104,268        2,600,431   

Foreign currency pledged to broker, at valueb

      —        —        284,405   

Receivables:

       

Investment securities sold

      2,007,993        16,053,006        2,312,944   

Due from custodian (Note 4)

      —        10,682,045        —   

Dividends and interest

      1,418,416        18,766,677        1,894,150   

Capital shares sold

      6,574,363        1,478,641        —   
  

 

 

    

 

 

    

 

 

  

Total Assets

      915,773,068        4,514,957,003        1,672,063,567   
  

 

 

    

 

 

    

 

 

  

LIABILITIES

       

Payables:

       

Investment securities purchased

      8,175,334        28,057,237        4,257,579   

Collateral for securities on loan (Note 5)

      —        43,836,785        62,003,178   

Capital shares redeemed

      —        —        623,903   

Futures variation margin

      —        —        30,539   

Investment advisory fees (Note 2)

      344,091        1,635,712        626,773   
  

 

 

    

 

 

    

 

 

  

Total Liabilities

      8,519,425        73,529,734        67,541,972   
  

 

 

    

 

 

    

 

 

  

NET ASSETS

    $ 907,253,643      $ 4,441,427,269      $ 1,604,521,595   
  

 

 

    

 

 

    

 

 

  

Net assets consist of:

       

Paid-in capital

    $ 544,754,090      $ 3,982,104,817      $ 1,649,015,406   

Undistributed (distributions in excess of) net investment income

      1,449,702        (22,499,012 )      (25,524,266 ) 

Accumulated net realized loss

      (76,244,180 )      (485,230,107 )      (214,503,945 ) 

Net unrealized appreciation on investments and translation of assets and liabilities in foreign currencies

      437,294,031        967,051,571        195,534,400   
  

 

 

    

 

 

    

 

 

  

NET ASSETS

    $ 907,253,643      $ 4,441,427,269      $ 1,604,521,595   
  

 

 

    

 

 

    

 

 

  

Shares outstandingc

      62,100,000        89,100,000        116,700,000   
  

 

 

    

 

 

    

 

 

  

Net asset value per share

    $ 14.61      $ 49.85      $ 13.75   
  

 

 

    

 

 

    

 

 

  

 

a 

Securities on loan with values of $  —, $41,373,414 and $58,460,056, respectively. See Note 5.

b 

Cost of foreign currencies including currency at broker, if any: $1,102,866, $9,130,647 and $2,895,039, respectively.

c 

$0.001 par value, number of shares authorized: 300 million, 1 billion and 300 million, respectively.

See notes to financial statements.

 

54    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Statements of Assets and Liabilities (Unaudited) (Continued)

iSHARES®, INC.

February 28, 2013

 

      iShares
MSCI South
Korea Capped
Index Fund		     iShares
MSCI Taiwan
Index Fund		     iShares
MSCI Thailand
Capped Investable
Market Index Fund		  

ASSETS

       

Investments, at cost:

       

Unaffiliated

    $ 1,634,860,486      $ 1,752,162,554      $ 836,359,099   

Affiliated (Note 2)

      99,618,739        246,013,646        407,408   
  

 

 

    

 

 

    

 

 

  

Total cost of investments

    $ 1,734,479,225      $ 1,998,176,200      $ 836,766,507   
  

 

 

    

 

 

    

 

 

  

Investments in securities, at fair value (including securities on loana) (Note 1):

       

Unaffiliated

    $ 3,369,358,403      $ 2,708,407,421      $ 1,040,486,556   

Affiliated (Note 2)

      99,618,739        246,013,646        407,408   
  

 

 

    

 

 

    

 

 

  

Total fair value of investments

      3,468,977,142        2,954,421,067        1,040,893,964   

Cash pledged to broker

      —        453,000        —   

Receivables:

       

Investment securities sold

      26,658,381        2,510,334        38,408,332   

Dividends and interest

      24,252,356        609,622        1,932,929   

Capital shares sold

      —        —        15,663   
  

 

 

    

 

 

    

 

 

  

Total Assets

      3,519,887,879        2,957,994,023        1,081,250,888   
  

 

 

    

 

 

    

 

 

  

LIABILITIES

       

Payables:

       

Investment securities purchased

      26,152,665        1,256,645        38,354,667   

Collateral for securities on loan (Note 5)

      96,088,937        241,187,660        —   

Foreign taxes (Note 1)

      —        70,203        —   

Investment advisory fees (Note 2)

      1,502,686        1,247,128        462,819   
  

 

 

    

 

 

    

 

 

  

Total Liabilities

      123,744,288        243,761,636        38,817,486   
  

 

 

    

 

 

    

 

 

  

NET ASSETS

    $ 3,396,143,591      $ 2,714,232,387      $ 1,042,433,402   
  

 

 

    

 

 

    

 

 

  

Net assets consist of:

       

Paid-in capital

    $ 2,521,144,942      $ 2,836,323,923      $ 849,708,654   

Undistributed (distributions in excess of) net investment income

      (10,596,466 )      (8,484,369 )      1,216,347   

Accumulated net realized loss

      (848,660,171 )      (1,069,827,262 )      (12,626,104 ) 

Net unrealized appreciation on investments and translation of assets and liabilities in foreign currencies

      1,734,255,286        956,220,095        204,134,505   
  

 

 

    

 

 

    

 

 

  

NET ASSETS

    $ 3,396,143,591      $ 2,714,232,387      $ 1,042,433,402   
  

 

 

    

 

 

    

 

 

  

Shares outstandingb

      54,500,000        201,400,000        11,550,000   
  

 

 

    

 

 

    

 

 

  

Net asset value per share

    $ 62.31      $ 13.48      $ 90.25   
  

 

 

    

 

 

    

 

 

  

 

a 

Securities on loan with values of $91,076,846, $226,972,989 and $  —, respectively. See Note 5.

b 

$0.001 par value, number of shares authorized: 200 million, 900 million and 200 million, respectively.

See notes to financial statements.

 

FINANCIAL STATEMENTS

      55   

Table of Contents

Statements of Operations (Unaudited)

iSHARES®, INC.

Six months ended February 28, 2013

 

      iShares
MSCI Australia
Index Fund		     iShares
MSCI Hong Kong
Index Fund		     iShares
MSCI Japan
Small Cap
Index Fund		  

NET INVESTMENT INCOME

       

Dividends — unaffiliateda

    $ 54,585,789      $ 20,059,073      $ 447,073   

Interest — unaffiliated

      30,726        —        —   

Interest — affiliated (Note 2)

      1,689        1,495        16   

Securities lending income — affiliated (Note 2)

      86,367        380,892        6,274   
  

 

 

    

 

 

    

 

 

  

Total investment income

      54,704,571        20,441,460        453,363   
  

 

 

    

 

 

    

 

 

  

EXPENSES

       

Investment advisory fees (Note 2)

      6,210,389        7,102,648        111,927   
  

 

 

    

 

 

    

 

 

  

Total expenses

      6,210,389        7,102,648        111,927   
  

 

 

    

 

 

    

 

 

  

Net investment income

      48,494,182        13,338,812        341,436   
  

 

 

    

 

 

    

 

 

  

NET REALIZED AND UNREALIZED GAIN (LOSS)

       

Net realized gain (loss) from:

       

Investments — unaffiliated

      (29,004,506 )      (26,878,823 )      (170,451 ) 

In-kind redemptions — unaffiliated

      48,186,036        14,896,640        603,169   

Futures contracts

      1,817,979        1,524,347        —   

Foreign currency transactions

      (364,057 )      (1,716 )      (29,027 ) 
  

 

 

    

 

 

    

 

 

  

Net realized gain (loss)

      20,635,452        (10,459,552 )      403,691   
  

 

 

    

 

 

    

 

 

  

Net change in unrealized appreciation/depreciation on:

       

Investments

      374,747,310        445,476,964        4,492,550   

Futures contracts

      915,113        87,084        —   

Translation of assets and liabilities in foreign currencies

      50,004        (99 )      (4,862 ) 
  

 

 

    

 

 

    

 

 

  

Net change in unrealized appreciation/depreciation

      375,712,427        445,563,949        4,487,688   
  

 

 

    

 

 

    

 

 

  

Net realized and unrealized gain

      396,347,879        435,104,397        4,891,379   
  

 

 

    

 

 

    

 

 

  

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

    $ 444,842,061      $ 448,443,209      $ 5,232,815   
  

 

 

    

 

 

    

 

 

  

 

a 

Net of foreign withholding tax of $690,422, $  — and $33,612, respectively.

See notes to financial statements.

 

56    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Statements of Operations (Unaudited) (Continued)

iSHARES®, INC.

Six months ended February 28, 2013

 

      iShares
MSCI Malaysia
Index Fund		      iShares
MSCI Pacific
ex-Japan
Index Fund		     iShares
MSCI Singapore
Index Fund		  

NET INVESTMENT INCOME

        

Dividends — unaffiliateda

    $ 13,482,573       $ 63,199,560      $ 11,358,592   

Interest — affiliated (Note 2)

      223         1,976        1,058   

Securities lending income — affiliated (Note 2)

      —         456,823        765,044   
  

 

 

     

 

 

    

 

 

  

Total investment income

      13,482,796         63,658,359        12,124,694   
  

 

 

     

 

 

    

 

 

  

EXPENSES

        

Investment advisory fees (Note 2)

      2,433,403         9,009,401        3,957,693   
  

 

 

     

 

 

    

 

 

  

Total expenses

      2,433,403         9,009,401        3,957,693   
  

 

 

     

 

 

    

 

 

  

Net investment income

      11,049,393         54,648,958        8,167,001   
  

 

 

     

 

 

    

 

 

  

NET REALIZED AND UNREALIZED GAIN (LOSS)

        

Net realized gain (loss) from:

        

Investments — unaffiliated

      5,277,233         (29,924,709 )      (11,167,073 ) 

In-kind redemptions — unaffiliated

      —         21,568,216        32,707,260   

Futures contracts

      —         —        306,952   

Foreign currency transactions

      89,832         (258,003 )      160,539   
  

 

 

     

 

 

    

 

 

  

Net realized gain (loss)

      5,367,065         (8,614,496 )      22,007,678   
  

 

 

     

 

 

    

 

 

  

Net change in unrealized appreciation/depreciation on:

        

Investments

      488,290         570,975,684        83,754,190   

Futures contracts

      —         —        13,360   

Translation of assets and liabilities in foreign currencies

      11,776         30,179        (37,921 ) 
  

 

 

     

 

 

    

 

 

  

Net change in unrealized appreciation/depreciation

      500,066         571,005,863        83,729,629   
  

 

 

     

 

 

    

 

 

  

Net realized and unrealized gain

      5,867,131         562,391,367        105,737,307   
  

 

 

     

 

 

    

 

 

  

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

    $ 16,916,524       $ 617,040,325      $ 113,904,308   
  

 

 

     

 

 

    

 

 

  

 

a 

Net of foreign withholding tax of $923,066, $924,738 and $162,480, respectively.

See notes to financial statements.

 

FINANCIAL STATEMENTS

      57   

Table of Contents

Statements of Operations (Unaudited) (Continued)

iSHARES®, INC.

Six months ended February 28, 2013

 

      iShares
MSCI South
Korea Capped
Index Fund		     iShares
MSCI Taiwan
Index Fund		     iShares
MSCI Thailand
Capped Investable
Market Index Fund		  

NET INVESTMENT INCOME

       

Dividends — unaffiliateda

    $ 24,294,006      $ 279,138      $ 4,759,085   

Interest — unaffiliated

      1,578        461        —   

Interest — affiliated (Note 2)

      2,103        2,710        658   

Securities lending income — affiliated (Note 2)

      1,890,953        3,613,260 b      —   
  

 

 

    

 

 

    

 

 

  
     26,188,640        3,895,569        4,759,743   

Less: Other foreign taxes (Note 1)

      —        (586,823 )      —   
  

 

 

    

 

 

    

 

 

  

Total investment income

      26,188,640        3,308,746        4,759,743   
  

 

 

    

 

 

    

 

 

  

EXPENSES

       

Investment advisory fees (Note 2)

      9,213,115        7,632,377        2,261,197   
  

 

 

    

 

 

    

 

 

  

Total expenses

      9,213,115        7,632,377        2,261,197   
  

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      16,975,525        (4,323,631 )      2,498,546   
  

 

 

    

 

 

    

 

 

  

NET REALIZED AND UNREALIZED GAIN (LOSS)

       

Net realized gain (loss) from:

       

Investments — unaffiliated

      22,031,478        (20,187,060 )      (9,190,213 ) 

In-kind redemptions — unaffiliated

      —        —        13,755,777   

Futures contracts

      —        607,511        —   

Foreign currency transactions

      (210,469 )      (177,393 )      11,495   
  

 

 

    

 

 

    

 

 

  

Net realized gain (loss)

      21,821,009        (19,756,942 )      4,577,059   
  

 

 

    

 

 

    

 

 

  

Net change in unrealized appreciation/depreciation on:

       

Investments

      296,555,552        237,436,597        186,533,635   

Futures contracts

      —        141,032        —   

Translation of assets and liabilities in foreign currencies

      (228,263 )      (6,928 )      4,544   
  

 

 

    

 

 

    

 

 

  

Net change in unrealized appreciation/depreciation

      296,327,289        237,570,701        186,538,179   
  

 

 

    

 

 

    

 

 

  

Net realized and unrealized gain

      318,148,298        217,813,759        191,115,238   
  

 

 

    

 

 

    

 

 

  

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

    $ 335,123,823      $ 213,490,128      $ 193,613,784   
  

 

 

    

 

 

    

 

 

  

 

a 

Net of foreign withholding tax of $6,806,984, $5,786 and $528,787, respectively.

b 

Net of foreign tax paid of $830,634.

See notes to financial statements.

 

58    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Statements of Changes in Net Assets

iSHARES®, INC.

 

         
iShares
MSCI Australia
Index Fund		     iShares
MSCI Hong Kong
Index Fund		  
      Six months
ended
February 28, 2013
(Unaudited)		    

Year ended

August 31, 2012

     Six months
ended
February 28, 2013
(Unaudited)		    

Year ended

August 31, 2012

  

INCREASE (DECREASE) IN NET ASSETS

         

OPERATIONS:

         

Net investment income

    $ 48,494,182      $ 121,314,624      $ 13,338,812      $ 57,045,268   

Net realized gain (loss)

      20,635,452        (146,353 )      (10,459,552 )      (96,172,080 ) 

Net change in unrealized appreciation/depreciation

      375,712,427        (124,678,562 )      445,563,949        77,291,953   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets resulting from operations

      444,842,061        (3,510,291 )      448,443,209        38,165,141   
  

 

 

    

 

 

    

 

 

    

 

 

  

DISTRIBUTIONS TO SHAREHOLDERS:

         

From net investment income

      (85,067,275 )      (127,985,295 )      (20,527,799 )      (55,827,349 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions to shareholders

      (85,067,275 )      (127,985,295 )      (20,527,799 )      (55,827,349 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

CAPITAL SHARE TRANSACTIONS:

         

Proceeds from shares sold

      220,481,766        379,920,871        1,299,939,783        1,187,272,846   

Cost of shares redeemed

      (398,540,312 )      (845,151,157 )      (67,251,810 )      (911,618,933 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from
capital share transactions

      (178,058,546 )      (465,230,286 )      1,232,687,973        275,653,913   
  

 

 

    

 

 

    

 

 

    

 

 

  

INCREASE (DECREASE) IN NET ASSETS

      181,716,240        (596,725,872 )      1,660,603,383        257,991,705   

NET ASSETS

         

Beginning of period

      2,493,698,756        3,090,424,628        1,865,974,157        1,607,982,452   
  

 

 

    

 

 

    

 

 

    

 

 

  

End of period

    $ 2,675,414,996      $ 2,493,698,756      $ 3,526,577,540      $ 1,865,974,157   
  

 

 

    

 

 

    

 

 

    

 

 

  

Undistributed (distributions in excess of) net investment income included in net assets at end of period

    $ (21,382,413 )    $ 15,190,680      $ (2,203,448 )    $ 4,985,539   
  

 

 

    

 

 

    

 

 

    

 

 

  

SHARES ISSUED AND REDEEMED

         

Shares sold

      8,600,000        16,400,000        68,625,000        73,350,000   

Shares redeemed

      (16,400,000 )      (37,600,000 )      (3,525,000 )      (54,600,000 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in shares outstanding

      (7,800,000 )      (21,200,000 )      65,100,000        18,750,000   
  

 

 

    

 

 

    

 

 

    

 

 

  

See notes to financial statements.

 

FINANCIAL STATEMENTS

      59   

Table of Contents

Statements of Changes in Net Assets (Continued)

iSHARES®, INC.

 

     iShares
MSCI Japan
Small Cap
Index Fund		     iShares
MSCI Malaysia
Index Fund		  
      Six months
ended
February 28, 2013
(Unaudited)		    

Year ended

August 31, 2012

     Six months
ended
February 28, 2013
(Unaudited)		    

Year ended

August 31, 2012

  

INCREASE (DECREASE) IN NET ASSETS

         

OPERATIONS:

         

Net investment income

    $ 341,436      $ 1,024,054      $ 11,049,393      $ 24,520,962   

Net realized gain (loss)

      403,691        2,654,100        5,367,065        (3,123,398 ) 

Net change in unrealized appreciation/depreciation

      4,487,688        (8,078,528 )      500,066        42,688,241   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets resulting from operations

      5,232,815        (4,400,374 )      16,916,524        64,085,805   
  

 

 

    

 

 

    

 

 

    

 

 

  

DISTRIBUTIONS TO SHAREHOLDERS:

         

From net investment income

      (687,935 )      (1,368,220 )      (9,599,691 )      (32,637,576 ) 

Return of capital

      —        —        —        (1,278,099 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions to shareholders

      (687,935 )      (1,368,220 )      (9,599,691 )      (33,915,675 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

CAPITAL SHARE TRANSACTIONS:

         

Proceeds from shares sold

      17,720,583        4,249,057        30,935,603        102,342,503   

Cost of shares redeemed

      (8,694,664 )      (3,050,195 )      (67,691,050 )      (174,222,658 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from
capital share transactions

      9,025,919        (25,801,138 )      (36,755,447 )      (71,880,155 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

INCREASE (DECREASE) IN NET ASSETS

      13,570,799        (31,569,732 )      (29,438,614 )      (41,710,025 ) 

NET ASSETS

         

Beginning of period

      42,817,065        74,386,797        936,692,257        978,402,282   
  

 

 

    

 

 

    

 

 

    

 

 

  

End of period

    $ 56,387,864      $ 42,817,065      $ 907,253,643      $ 936,692,257   
  

 

 

    

 

 

    

 

 

    

 

 

  

Undistributed (distributions in excess of) net investment income included in net assets at end of period

    $ (305,484 )    $ 41,015      $ 1,449,702      $ —   
  

 

 

    

 

 

    

 

 

    

 

 

  

SHARES ISSUED AND REDEEMED

         

Shares sold

      400,000        100,000        2,100,000        7,275,000   

Shares redeemed

      (200,000 )      (700,000 )      (4,500,000 )      (13,050,000 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in shares outstanding

      200,000        (600,000 )      (2,400,000 )      (5,775,000 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

See notes to financial statements.

 

60    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Statements of Changes in Net Assets (Continued)

iSHARES®, INC.

 

     iShares
MSCI Pacific
ex-Japan
Index Fund		     iShares
MSCI Singapore
Index Fund		  
      Six months
ended
February 28, 2013
(Unaudited)		    

Year ended

August 31, 2012

     Six months
ended
February 28, 2013
(Unaudited)		    

Year ended

August 31, 2012

  

INCREASE (DECREASE) IN NET ASSETS

         

OPERATIONS:

         

Net investment income

    $ 54,648,958      $ 134,564,204      $ 8,167,001      $ 48,620,016   

Net realized gain (loss)

      (8,614,496 )      19,498,306        22,007,678        5,615,906   

Net change in unrealized appreciation/depreciation

      571,005,863        (127,950,024 )      83,729,629        (25,799,426 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase in net assets resulting from operations

      617,040,325        26,112,486        113,904,308        28,436,496   
  

 

 

    

 

 

    

 

 

    

 

 

  

DISTRIBUTIONS TO SHAREHOLDERS:

         

From net investment income

      (85,932,393 )      (141,521,654 )      (38,608,771 )      (55,248,494 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions to shareholders

      (85,932,393 )      (141,521,654 )      (38,608,771 )      (55,248,494 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

CAPITAL SHARE TRANSACTIONS:

         

Proceeds from shares sold

      777,647,140        77,411,532        166,909,810        109,538,489   

Cost of shares redeemed

      (55,909,672 )      (322,287,900 )      (150,370,259 )      (283,239,248 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from
capital share transactions

      721,737,468        (244,876,368 )      16,539,551        (173,700,759 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

INCREASE (DECREASE) IN NET ASSETS

      1,252,845,400        (360,285,536 )      91,835,088        (200,512,757 ) 

NET ASSETS

         

Beginning of period

      3,188,581,869        3,548,867,405        1,512,686,507        1,713,199,264   
  

 

 

    

 

 

    

 

 

    

 

 

  

End of period

    $ 4,441,427,269      $ 3,188,581,869      $ 1,604,521,595      $ 1,512,686,507   
  

 

 

    

 

 

    

 

 

    

 

 

  

Undistributed (distributions in excess of )net investment income included in net assets at end of period

    $ (22,499,012 )    $ 8,784,423      $ (25,524,266 )    $ 4,917,504   
  

 

 

    

 

 

    

 

 

    

 

 

  

SHARES ISSUED AND REDEEMED

         

Shares sold

      16,500,000        1,800,000        12,300,000        8,600,000   

Shares redeemed

      (1,200,000 )      (7,800,000 )      (11,100,000 )      (24,400,000 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in shares outstanding

      15,300,000        (6,000,000 )      1,200,000        (15,800,000 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

See notes to financial statements.

 

FINANCIAL STATEMENTS

      61   

Table of Contents

Statements of Changes in Net Assets (Continued)

iSHARES®, INC.

 

     iShares
MSCI South
Korea Capped
Index Fund		     iShares
MSCI Taiwan
Index Fund		  
      Six months
ended
February 28, 2013
(Unaudited)		    

Year ended

August 31, 2012

     Six months
ended
February 28, 2013
(Unaudited)		    

Year ended

August 31, 2012

  

INCREASE (DECREASE) IN NET ASSETS

         

OPERATIONS:

         

Net investment income (loss)

    $ 16,975,525      $ 13,344,165      $ (4,323,631 )    $ 52,569,798   

Net realized gain (loss)

      21,821,009        293,479,714        (19,756,942 )      9,808,034   

Net change in unrealized appreciation/depreciation

      296,327,289        (395,833,750 )      237,570,701        (245,000,348 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets resulting from operations

      335,123,823        (89,009,871 )      213,490,128        (182,622,516 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

DISTRIBUTIONS TO SHAREHOLDERS:

         

From net investment income

      (18,847,855 )      (21,597,221 )      (53,961,288 )      (88,700,282 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions to shareholders

      (18,847,855 )      (21,597,221 )      (53,961,288 )      (88,700,282 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

CAPITAL SHARE TRANSACTIONS:

         

Proceeds from shares sold

      410,316,408        128,924,534        342,174,515        381,912,612   

Cost of shares redeemed

      —        (1,419,990,818 )      (34,598,958 )      (720,973,706 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from
capital share transactions

      410,316,408        (1,291,066,284 )      307,575,557        (339,061,094 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

INCREASE (DECREASE) IN NET ASSETS

      726,592,376        (1,401,673,376 )      467,104,397        (610,383,892 ) 

NET ASSETS

         

Beginning of period

      2,669,551,215        4,071,224,591        2,247,127,990        2,857,511,882   
  

 

 

    

 

 

    

 

 

    

 

 

  

End of period

    $ 3,396,143,591      $ 2,669,551,215      $ 2,714,232,387      $ 2,247,127,990   
  

 

 

    

 

 

    

 

 

    

 

 

  

Undistributed (distributions in excess of) net investment income included in net assets at end of period

    $ (10,596,466 )    $ (8,724,136 )    $ (8,484,369 )    $ 49,800,550   
  

 

 

    

 

 

    

 

 

    

 

 

  

SHARES ISSUED AND REDEEMED

         

Shares sold

      6,800,000        2,350,000        25,400,000        30,600,000   

Shares redeemed

      —        (26,400,000 )      (2,600,000 )      (59,400,000 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in shares outstanding

      6,800,000        (24,050,000 )      22,800,000        (28,800,000 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

See notes to financial statements.

 

62    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Statements of Changes in Net Assets (Continued)

iSHARES®, INC.

 

     iShares
MSCI Thailand
Capped Investable
Market Index Fund		  
      Six months
ended
February 28, 2013
(Unaudited)		    

Year ended

August 31, 2012

  

INCREASE (DECREASE) IN NET ASSETS

     

OPERATIONS:

     

Net investment income

    $ 2,498,546      $ 15,574,422   

Net realized gain

      4,577,059        58,835,767   

Net change in unrealized appreciation/depreciation

      186,538,179        (54,329,252 ) 
  

 

 

    

 

 

  

Net increase in net assets resulting from operations

      193,613,784        20,080,937   
  

 

 

    

 

 

  

DISTRIBUTIONS TO SHAREHOLDERS:

     

From net investment income

      (3,828,525 )      (15,932,327 ) 
  

 

 

    

 

 

  

Total distributions to shareholders

      (3,828,525 )      (15,932,327 ) 
  

 

 

    

 

 

  

CAPITAL SHARE TRANSACTIONS:

     

Proceeds from shares sold

      309,691,537        364,124,479   

Cost of shares redeemed

      (53,010,894 )      (405,145,323 ) 
  

 

 

    

 

 

  

Net increase (decrease) in net assets from capital share transactions

      256,680,643        (41,020,844 ) 
  

 

 

    

 

 

  

INCREASE (DECREASE) IN NET ASSETS

      446,465,902        (36,872,234 ) 

NET ASSETS

     

Beginning of period

      595,967,500        632,839,734   
  

 

 

    

 

 

  

End of period

    $ 1,042,433,402      $ 595,967,500   
  

 

 

    

 

 

  

Undistributed net investment income included in net assets at end of period

    $ 1,216,347      $ 2,546,326   
  

 

 

    

 

 

  

SHARES ISSUED AND REDEEMED

     

Shares sold

      3,800,000        5,250,000   

Shares redeemed

      (700,000 )      (6,350,000 ) 
  

 

 

    

 

 

  

Net increase (decrease) in shares outstanding

      3,100,000        (1,100,000 ) 
  

 

 

    

 

 

  

See notes to financial statements.

 

FINANCIAL STATEMENTS

      63   

Table of Contents

Financial Highlights

iSHARES®, INC.

(For a share outstanding throughout each period)

 

     iShares MSCI Australia Index Fund  
      Six months
ended
Feb. 28, 2013
(Unaudited)		    

Year ended

Aug. 31, 2012

    

Year ended

Aug. 31, 2011

     Year ended
Aug. 31, 2010		    

Year ended

Aug. 31, 2009

    

Year ended

Aug. 31, 2008

  

Net asset value, beginning of period

    $ 23.39      $ 24.18      $ 20.92      $ 20.33      $ 23.96      $ 27.62   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income from investment operations:

             

Net investment incomea

      0.50        1.04        0.99        0.72        0.78        0.96   

Net realized and unrealized gain (loss)b

      4.09        (0.72 )      3.33        0.69        (3.47 )      (3.34 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      4.59        0.32        4.32        1.41        (2.69 )      (2.38 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Less distributions from:

             

Net investment income

      (0.90 )      (1.11 )      (1.06 )      (0.82 )      (0.94 )      (1.28 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (0.90 )      (1.11 )      (1.06 )      (0.82 )      (0.94 )      (1.28 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of period

    $ 27.08      $ 23.39      $ 24.18      $ 20.92      $ 20.33      $ 23.96   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return

      19.96 %c      1.84 %      20.54 %      6.86 %      (8.91 )%      (9.25 )% 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios/Supplemental data:

             

Net assets, end of period (000s)

    $ 2,675,415      $ 2,493,699      $ 3,090,425      $ 2,196,817      $ 1,593,676      $ 1,059,092   

Ratio of expenses to average net assetsd

      0.51 %      0.53 %      0.52 %      0.53 %      0.55 %      0.52 % 

Ratio of net investment income to average
net assetsd

      4.02 %      4.61 %      3.95 %      3.24 %      4.92 %      3.38 % 

Portfolio turnover ratee

      3 %      9 %      9 %      8 %      14 %      10 % 

 

a 

Based on average shares outstanding throughout each period.

b 

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.

c 

Not annualized.

d 

Annualized for periods of less than one year.

e 

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.

 

64    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Financial Highlights (Continued)

iSHARES®, INC.

(For a share outstanding throughout each period)

 

     iShares MSCI Hong Kong Index Fund  
      Six months
ended
Feb. 28, 2013
(Unaudited)		    

Year ended

Aug. 31, 2012

    

Year ended

Aug. 31, 2011

     Year ended
Aug. 31, 2010		    

Year ended

Aug. 31, 2009

    

Year ended

Aug. 31, 2008

  

Net asset value, beginning of period

    $ 16.94      $ 17.59      $ 16.02      $ 14.39      $ 15.87      $ 18.30   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income from investment operations:

             

Net investment incomea

      0.09        0.54        0.42        0.42        0.52        0.45   

Net realized and unrealized gain (loss)b

      3.22        (0.65 )      1.56        1.69        (1.46 )      (2.25 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      3.31        (0.11 )      1.98        2.11        (0.94 )      (1.80 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Less distributions from:

             

Net investment income

      (0.13 )      (0.54 )      (0.41 )      (0.48 )      (0.54 )      (0.63 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (0.13 )      (0.54 )      (0.41 )      (0.48 )      (0.54 )      (0.63 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of period

    $ 20.12      $ 16.94      $ 17.59      $ 16.02      $ 14.39      $ 15.87   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return

      19.59 %c      (0.33 )%      12.27 %      14.85 %      (4.77 )%      (10.54 )% 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios/Supplemental data:

             

Net assets, end of period (000s)

    $ 3,526,578      $ 1,865,974      $ 1,607,982      $ 1,976,317      $ 1,951,777      $ 1,675,184   

Ratio of expenses to average net assetsd

      0.51 %      0.53 %      0.52 %      0.53 %      0.55 %      0.52 % 

Ratio of net investment income to average
net assetsd

      0.96 %      3.26 %      2.25 %      2.67 %      4.29 %      2.34 % 

Portfolio turnover ratee

      5 %      11 %      15 %      5 %      9 %      17 % 

 

a 

Based on average shares outstanding throughout each period.

b 

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.

c 

Not annualized.

d 

Annualized for periods of less than one year.

e 

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.

 

FINANCIAL HIGHLIGHTS

      65   

Table of Contents

Financial Highlights (Continued)

iSHARES®, INC.

(For a share outstanding throughout each period)

 

     iShares MSCI Japan Small Cap Index Fund  
      Six months
ended
Feb. 28, 2013
(Unaudited)		    

Year ended

Aug. 31, 2012

    

Year ended

Aug. 31, 2011

     Year ended
Aug. 31, 2010		    

Year ended

Aug. 31, 2009

    

Period from
Dec. 20, 2007a

to

Aug. 31, 2008

  

Net asset value, beginning of period

    $ 42.82      $ 46.49      $ 40.74      $ 44.45      $ 43.24      $ 48.85   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income from investment operations:

             

Net investment incomeb

      0.34        0.82        0.78        0.61        0.60        0.29   

Net realized and unrealized gain (loss)c

      4.59        (3.25 )      5.87        (3.39 )      1.29        (5.74 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      4.93        (2.43 )      6.65        (2.78 )      1.89        (5.45 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Less distributions from:

             

Net investment income

      (0.76 )      (1.24 )      (0.90 )      (0.93 )      (0.68 )      (0.16 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (0.76 )      (1.24 )      (0.90 )      (0.93 )      (0.68 )      (0.16 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of period

    $ 46.99      $ 42.82      $ 46.49      $ 40.74      $ 44.45      $ 43.24   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return

      11.68 %d      (5.18 )%      16.38 %      (6.25 )%      4.62 %      (11.19 )%d 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios/Supplemental data:

             

Net assets, end of period (000s)

    $ 56,388      $ 42,817      $ 74,387      $ 36,664      $ 35,556      $ 34,594   

Ratio of expenses to average net assetse

      0.51 %      0.53 %      0.51 %      0.53 %      0.56 %      0.53 % 

Ratio of net investment income to average
net assetse

      1.57 %      1.84 %      1.72 %      1.46 %      1.59 %      0.93 % 

Portfolio turnover ratef

      6 %      7 %      10 %      7 %      7 %      7 % 

 

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.

 

66    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Financial Highlights (Continued)

iSHARES®, INC.

(For a share outstanding throughout each period)

 

     iShares MSCI Malaysia Index Fund  
      Six months
ended
Feb. 28, 2013
(Unaudited)		    

Year ended

Aug. 31, 2012

    

Year ended

Aug. 31, 2011

     Year ended
Aug. 31, 2010		    

Year ended

Aug. 31, 2009

    

Year ended

Aug. 31, 2008

  

Net asset value, beginning of period

    $ 14.52      $ 13.92      $ 12.98      $ 9.79      $ 9.39      $ 10.97   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income from investment operations:

             

Net investment incomea

      0.17        0.38        0.41        0.24        0.28        0.34   

Net realized and unrealized gain (loss)b

      0.07        0.76        0.92        3.20        0.40        (1.31 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      0.24        1.14        1.33        3.44        0.68        (0.97 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Less distributions from:

             

Net investment income

      (0.15 )      (0.52 )      (0.39 )      (0.25 )      (0.28 )      (0.61 ) 

Return of capital

      —        (0.02 )      —        —        —        —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (0.15 )      (0.54 )      (0.39 )      (0.25 )      (0.28 )      (0.61 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of period

    $ 14.61      $ 14.52      $ 13.92      $ 12.98      $ 9.79      $ 9.39   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return

      1.61 %c      8.61 %      10.19 %      35.76 %      8.00 %      (9.86 )% 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios/Supplemental data:

             

Net assets, end of period (000s)

    $ 907,254      $ 936,692      $ 978,402      $ 794,142      $ 513,000      $ 473,091   

Ratio of expenses to average net assetsd

      0.52 %      0.53 %      0.52 %      0.53 %      0.56 %      0.52 % 

Ratio of net investment income to average
net assetsd

      2.34 %      2.73 %      2.84 %      2.17 %      3.45 %      2.84 % 

Portfolio turnover ratee

      7 %      24 %      49 %      29 %      52 %      92 % 

 

a 

Based on average shares outstanding throughout each period.

b 

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.

c 

Not annualized.

d 

Annualized for periods of less than one year.

e 

Portfolio turnover rates include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S. dollars. Excluding such transactions, the portfolio turnover rates for the six months ended February 28, 2013 and the years ended August 31, 2012, August 31, 2011, August 31, 2010, August 31, 2009, and August 31, 2008 were 3%, 14%, 14%, 10%, 12%, and 16%, respectively. See Note 4.

See notes to financial statements.

 

FINANCIAL HIGHLIGHTS

      67   

Table of Contents

Financial Highlights (Continued)

iSHARES®, INC.

(For a share outstanding throughout each period)

 

     iShares MSCI Pacific ex-Japan Index Fund  
     

Six months

ended

Feb. 28, 2013
(Unaudited)

    

Year ended

Aug. 31, 2012

    

Year ended

Aug. 31, 2011

     Year ended
Aug. 31, 2010		    

Year ended

Aug. 31, 2009

    

Year ended

Aug. 31, 2008a

  

Net asset value, beginning of period

    $ 43.21      $ 44.47      $ 39.25      $ 36.85      $ 41.37      $ 48.31   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income from investment operations:

             

Net investment incomeb

      0.69        1.73        1.64        1.25        1.38        1.64   

Net realized and unrealized gain (loss)c

      7.06        (1.14 )      5.31        2.52        (4.79 )      (6.01 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      7.75        0.59        6.95        3.77        (3.41 )      (4.37 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Less distributions from:

             

Net investment income

      (1.11 )      (1.85 )      (1.73 )      (1.37 )      (1.11 )      (2.51 ) 

Net realized gain

      —        —        —        —        —        (0.06 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (1.11 )      (1.85 )      (1.73 )      (1.37 )      (1.11 )      (2.57 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of period

    $ 49.85      $ 43.21      $ 44.47      $ 39.25      $ 36.85      $ 41.37   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return

      18.10 %d      1.82 %      17.61 %      10.27 %      (7.23 )%      (9.87 )% 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios/Supplemental data:

             

Net assets, end of period (000s)

    $ 4,441,427      $ 3,188,582      $ 3,548,867      $ 3,438,149      $ 3,382,554      $ 3,263,971   

Ratio of expenses to average net assetse

      0.50 %      0.50 %      0.50 %      0.50 %      0.50 %      0.50 % 

Ratio of net investment income to average
net assetse

      3.01 %      4.16 %      3.53 %      3.09 %      4.83 %      3.35 % 

Portfolio turnover ratef

      4 %      7 %      10 %      7 %      10 %      14 % 

 

a 

Per share amounts were adjusted to reflect a three-for-one stock split effective July 24, 2008.

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.

 

68    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Financial Highlights (Continued)

iSHARES®, INC.

(For a share outstanding throughout each period)

 

     iShares MSCI Singapore Index Fund  
     

Six months
ended

Feb. 28, 2013
(Unaudited)

    

Year ended

Aug. 31, 2012

    

Year ended

Aug. 31, 2011

     Year ended
Aug. 31, 2010		    

Year ended

Aug. 31, 2009

    

Year ended

Aug. 31, 2008

  

Net asset value, beginning of period

    $ 13.10      $ 13.05      $ 12.17      $ 10.25      $ 11.44      $ 13.28   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income from investment operations:

             

Net investment incomea

      0.07        0.41        0.45        0.32        0.32        0.47   

Net realized and unrealized gain (loss)b

      0.93        0.11        0.92        1.97        (1.16 )      (1.67 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      1.00        0.52        1.37        2.29        (0.84 )      (1.20 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Less distributions from:

             

Net investment income

      (0.35 )      (0.47 )      (0.49 )      (0.37 )      (0.35 )      (0.64 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (0.35 )      (0.47 )      (0.49 )      (0.37 )      (0.35 )      (0.64 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of period

    $ 13.75      $ 13.10      $ 13.05      $ 12.17      $ 10.25      $ 11.44   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return

      7.65 %c      4.67 %      11.27 %      22.68 %      (5.87 )%      (9.55 )% 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios/Supplemental data:

             

Net assets, end of period (000s)

    $ 1,604,522      $ 1,512,687      $ 1,713,199      $ 1,730,001      $ 1,294,039      $ 1,476,968   

Ratio of expenses to average net assetsd

      0.51 %      0.53 %      0.52 %      0.53 %      0.55 %      0.52 % 

Ratio of net investment income to average
net assetsd

      1.06 %      3.32 %      3.34 %      2.80 %      3.97 %      3.56 % 

Portfolio turnover ratee

      2 %      3 %      10 %      9 %      15 %      16 % 

 

a 

Based on average shares outstanding throughout each period.

b 

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.

c 

Not annualized.

d 

Annualized for periods of less than one year.

e 

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.

 

FINANCIAL HIGHLIGHTS

      69   

Table of Contents

Financial Highlights (Continued)

iSHARES®, INC.

(For a share outstanding throughout each period)

 

     iShares MSCI South Korea Capped Index Fund  
     

Six months

ended

Feb. 28, 2013

(Unaudited)

    

Year ended

Aug. 31, 2012

    

Year ended

Aug. 31, 2011

     Year ended
Aug. 31, 2010		    

Year ended

Aug. 31, 2009

    

Year ended

Aug. 31, 2008

  

Net asset value, beginning of period

    $ 55.97      $ 56.74      $ 47.76      $ 42.01      $ 43.55      $ 63.60   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income from investment operations:

             

Net investment incomea

      0.33        0.23        0.29        0.32        0.30        0.80   

Net realized and unrealized gain (loss)b

      6.37        (0.63 )      9.19        5.82        (1.45 )      (19.87 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      6.70        (0.40 )      9.48        6.14        (1.15 )      (19.07 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Less distributions from:

             

Net investment income

      (0.36 )      (0.37 )      (0.43 )      (0.39 )      (0.39 )      (0.98 ) 

Return of capital

      —        —        (0.07 )      —        —        —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (0.36 )      (0.37 )      (0.50 )      (0.39 )      (0.39 )      (0.98 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of period

    $ 62.31      $ 55.97      $ 56.74      $ 47.76      $ 42.01      $ 43.55   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return

      11.98 %c      (0.62 )%      19.76 %      14.65 %      (2.31 )%      (30.35 )% 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios/Supplemental data:

             

Net assets, end of period (000s)

    $ 3,396,144      $ 2,669,551      $ 4,071,225      $ 3,255,168      $ 2,398,550      $ 1,985,763   

Ratio of expenses to average net assetsd

      0.60 %      0.61 %      0.59 %      0.61 %      0.65 %      0.63 % 

Ratio of net investment income to average
net assetsd

      1.11 %      0.42 %      0.49 %      0.67 %      0.91 %      1.35 % 

Portfolio turnover ratee

      6 %      12 %      18 %      14 %      62 %      42 % 

 

a 

Based on average shares outstanding throughout each period.

b 

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.

c 

Not annualized.

d 

Annualized for periods of less than one year.

e 

Portfolio turnover rates include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S. dollars. Excluding such transactions, the portfolio turnover rates for the six months ended February 28, 2013 and the years ended August 31, 2012, August 31, 2011, August 31, 2010, August 31, 2009 and August 31, 2008 were 6%, 8%, 6%, 6%, 8% and 15%, respectively. See Note 4.

See notes to financial statements.

 

70    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Financial Highlights (Continued)

iSHARES®, INC.

(For a share outstanding throughout each period)

 

     iShares MSCI Taiwan Index Fund  
     

Six months
ended

Feb. 28, 2013

(Unaudited)

    

Year ended

Aug. 31, 2012

    

Year ended

Aug. 31, 2011

     Year ended
Aug. 31, 2010		    

Year ended

Aug. 31, 2009

    

Year ended

Aug. 31, 2008

  

Net asset value, beginning of period

    $ 12.58      $ 13.78      $ 12.19      $ 10.94      $ 13.13      $ 15.99   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income from investment operations:

             

Net investment income (loss)a

      (0.02 )      0.28        0.39        0.23        0.30        0.54   

Net realized and unrealized gain (loss)b

      1.19        (1.01 )      1.49        1.23        (1.89 )      (3.01 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      1.17        (0.73 )      1.88        1.46        (1.59 )      (2.47 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Less distributions from:

             

Net investment income

      (0.27 )      (0.47 )      (0.29 )      (0.21 )      (0.60 )      (0.39 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (0.27 )      (0.47 )      (0.29 )      (0.21 )      (0.60 )      (0.39 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of period

    $ 13.48      $ 12.58      $ 13.78      $ 12.19      $ 10.94      $ 13.13   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return

      9.33 %c      (4.80 )%      15.24 %      13.30 %      (9.67 )%      (15.69 )% 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios/Supplemental data:

             

Net assets, end of period (000s)

    $ 2,714,232      $ 2,247,128      $ 2,857,512      $ 2,721,439      $ 3,035,331      $ 2,918,008   

Ratio of expenses to average net assetsd,e

      0.60 %      0.61 %      0.59 %      0.61 %      0.65 %      0.63 % 

Ratio of net investment income (loss) to average net assetsd

      (0.34 )%      2.25 %      2.64 %      1.90 %      3.18 %      3.54 % 

Portfolio turnover ratef

      5 %      22 %      23 %      9 %      52 %      33 % 

 

a 

Based on average shares outstanding throughout each period.

b 

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.

c 

Not annualized.

d 

Annualized for periods of less than one year.

e 

Ratios for the years ended August 31, 2010 and prior have been recalculated, as necessary, to conform with the current presentation of foreign taxes.

f 

Portfolio turnover rates include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S. dollars. Excluding such transactions, the portfolio turnover rates for the six months ended February 28, 2013 and the years ended August 31, 2012, August 31, 2011, August 31, 2010, August 31, 2009, and August 31, 2008 were 2%, 7%, 8%, 4%, 14%, and 11%, respectively. See Note 4.

See notes to financial statements.

 

FINANCIAL HIGHLIGHTS

      71   

Table of Contents

Financial Highlights (Continued)

iSHARES®, INC.

(For a share outstanding throughout each period)

 

     iShares MSCI Thailand Capped Investable Market Index Fund  
     

Six months
ended

Feb. 28, 2013
(Unaudited)

    

Year ended

Aug. 31, 2012

    

Year ended

Aug. 31, 2011

     Year ended
Aug. 31, 2010		    

Year ended

Aug. 31, 2009

    

Period from
Mar. 26, 2008a

to

Aug. 31, 2008

  

Net asset value, beginning of period

    $ 70.53      $ 66.27      $ 55.06      $ 36.87      $ 38.83      $ 50.03   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income from investment operations:

             

Net investment incomeb

      0.26        1.76        1.65        1.44        1.17        0.32   

Net realized and unrealized gain (loss)c

      19.88        4.37        11.10        17.95        (1.88 )      (11.52 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      20.14        6.13        12.75        19.39        (0.71 )      (11.20 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Less distributions from:

             

Net investment income

      (0.42 )      (1.87 )      (1.54 )      (1.20 )      (1.25 )      —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (0.42 )      (1.87 )      (1.54 )      (1.20 )      (1.25 )      —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of period

    $ 90.25      $ 70.53      $ 66.27      $ 55.06      $ 36.87      $ 38.83   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return

      28.63 %d      9.57 %      23.33 %      53.19 %      (0.33 )%      (22.39 )%d 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios/Supplemental data:

             

Net assets, end of period (000s)

    $ 1,042,433      $ 595,968      $ 632,840      $ 520,304      $ 94,021      $ 58,248   

Ratio of expenses to average net assetse,f

      0.60 %      0.61 %      0.59 %      0.61 %      0.65 %      0.63 % 

Ratio of net investment income to average
net assetse

      0.67 %      2.66 %      2.56 %      3.22 %      4.00 %      1.68 % 

Portfolio turnover rateg

      14 %      12 %      22 %      14 %      15 %      19 % 

 

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 

Ratios for the periods ended August 31, 2010 and prior have been recalculated, as necessary, to conform with the current presentation of foreign taxes.

g 

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.

 

72    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

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 MSCI Index Fund   Diversification
Classification		  

Australia

     Non-diversified   

Hong Kong

     Non-diversified   

Japan Small Cap

     Diversified   

Malaysia

     Non-diversified   

Pacific ex-Japan

     Diversified   
iShares MSCI Index Fund   Diversification
Classification		  

Singapore

     Non-diversified   

South Korea Cappeda

     Non-diversified   

Taiwan

     Non-diversified   

Thailand Capped Investable Marketb

     Non-diversified   
 

 

  a   

Formerly the iShares MSCI South Korea Index Fund

  b   

Formerly the iShares MSCI Thailand Investable Market Index Fund

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

      73   

Table of Contents

Notes to Financial Statements (Unaudited) (Continued)

iSHARES®, INC.

 

SECURITY VALUATION

Each Fund’s investments are valued at fair value each day that the Fund’s listing exchange is open. 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 BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) provides oversight of the valuation of investments for the Funds. The investments of each Fund are valued pursuant to policies and procedures developed by the Global Valuation Committee and approved by the Board of Directors of the Company (the “Board”).

 

  •  

Equity investments traded on a recognized securities exchange are valued at that day’s last reported trade price or the official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price.

 

  •  

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

 

  •  

Financial futures contracts are valued at that day’s last reported settlement price on the exchange where the contract is traded.

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 deemed relevant by the Global Valuation Committee, in accordance with policies approved by the Board. These factors include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other factors, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or other default rates. Valuations based on such factors are reported to the Board on a quarterly basis.

The Global Valuation Committee employs various methods for calibrating valuation approaches for investments where an active market does not exist, including regular due diligence of the Company’s pricing vendors, a regular review of key inputs and assumptions, transactional back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing or stale prices and large movements in market values, and reviews of market related activity.

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 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. 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

 

74    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Notes to Financial Statements (Unaudited) (Continued)

iSHARES®, INC.

 

 

(such as exchange rates, financing terms, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; 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. In accordance with the Company’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period.

The following table summarizes the value of each of the Funds’ investments according to the fair value hierarchy as of February 28, 2013. The breakdown of each Fund’s investments into major categories is disclosed in its respective schedule of investments.

 

iShares MSCI Index Fund and
Investment Type

 

    Investments  
   Level 1      Level 2      Level 3      Total  

Australia

            

Assets:

            

Common Stocks

    $ 2,650,856,719       $ —       $ —       $ 2,650,856,719   

Investment Companies

      —         —         247         247   

Money Market Funds

      4,571,563         —         —         4,571,563   

Futures Contractsa

      865,094         —         —         865,094   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 2,656,293,376       $ —       $ 247       $ 2,656,293,623   
  

 

 

     

 

 

     

 

 

     

 

 

  

Hong Kong

            

Assets:

            

Common Stocks

    $ 3,519,885,447       $ —       $ —       $ 3,519,885,447   

Money Market Funds

      77,899,246         —         —         77,899,246   

Futures Contractsa

      63,709         —         —         63,709   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 3,597,848,402       $ —       $ —       $ 3,597,848,402   
  

 

 

     

 

 

     

 

 

     

 

 

  

Japan Small Cap

            

Assets:

            

Common Stocks

    $ 56,234,361       $ —       $ —       $ 56,234,361   

Money Market Funds

      1,197,898         —         —         1,197,898   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 57,432,259       $ —       $ —       $ 57,432,259   
  

 

 

     

 

 

     

 

 

     

 

 

  

Malaysia

            

Assets:

            

Common Stocks

    $ 904,653,804       $ —       $ —       $ 904,653,804   

Money Market Funds

      25,782         —         —         25,782   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 904,679,586       $ —       $ —       $ 904,679,586   
  

 

 

     

 

 

     

 

 

     

 

 

  
                                     

 

NOTES TO FINANCIAL STATEMENTS

      75   

Table of Contents

Notes to Financial Statements (Unaudited) (Continued)

iSHARES®, INC.

 

iShares MSCI Index Fund and
Investment Type

 

    Investments  
   Level 1     Level 2      Level 3     Total  

Pacific ex-Japan

          

Assets:

          

Common Stocks

    $ 4,395,190,676      $ 17,859,289       $ —      $ 4,413,049,965   

Investment Companies

      —        —         353        353   

Money Market Funds

      45,822,048        —         —        45,822,048   
  

 

 

    

 

 

     

 

 

    

 

 

  
   $ 4,441,012,724      $ 17,859,289       $ 353      $ 4,458,872,366   
  

 

 

    

 

 

     

 

 

    

 

 

  

Singapore

          

Assets:

          

Common Stocks

    $ 1,546,945,660      $ 53,665,862       $ —      $ 1,600,611,522   

Money Market Funds

      64,360,115        —         —        64,360,115   

Liabilities:

          

Futures Contractsa

      (30,539 )      —         —        (30,539 ) 
  

 

 

    

 

 

     

 

 

    

 

 

  
   $ 1,611,275,236      $ 53,665,862       $ —      $ 1,664,941,098   
  

 

 

    

 

 

     

 

 

    

 

 

  

South Korea Capped

          

Assets:

          

Common Stocks

    $ 3,306,857,660      $ —       $ 0 b    $ 3,306,857,660   

Preferred Stocks

      62,500,743        —         —        62,500,743   

Money Market Funds

      99,618,739        —         —        99,618,739   
  

 

 

    

 

 

     

 

 

    

 

 

  
   $ 3,468,977,142      $ —       $ 0 b    $ 3,468,977,142   
  

 

 

    

 

 

     

 

 

    

 

 

  

Taiwan

          

Assets:

          

Common Stocks

    $ 2,708,407,419      $ —       $ 2      $ 2,708,407,421   

Money Market Funds

      246,013,646        —         —        246,013,646   

Liabilities:

          

Futures Contractsa

      (24,962 )      —         —        (24,962 ) 
  

 

 

    

 

 

     

 

 

    

 

 

  
   $ 2,954,396,103      $ —       $ 2      $ 2,954,396,105   
  

 

 

    

 

 

     

 

 

    

 

 

  

Thailand Capped Investable Market

          

Assets:

          

Common Stocks

    $ 1,040,486,550      $ —       $ —      $ 1,040,486,550   

Warrants

      —        6         —        6   

Money Market Funds

      407,408        —         —        407,408   
  

 

 

    

 

 

     

 

 

    

 

 

  
   $ 1,040,893,958      $ 6       $ —      $ 1,040,893,964   
  

 

 

    

 

 

     

 

 

    

 

 

  
                                   

 

  a   

Futures contracts are shown at the net unrealized appreciation (depreciation) on the contracts.

  b   

Rounds to less than $1.

The iShares MSCI Singapore Index Fund had transfers from Level 1 to Level 2 during the period ended February 28, 2013 in the amount of $53,665,862, resulting from a suspension of trading due to a pending corporate action.

 

76    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

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Notes to Financial Statements (Unaudited) (Continued)

iSHARES®, INC.

 

SECURITY TRANSACTIONS AND INCOME RECOGNITION

Security transactions are accounted for on trade date. Dividend income is recognized on the ex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities as of February 28, 2013 are reflected in dividends receivable. Non-cash dividends received in the form of stock in an elective dividend, if any, are recorded as dividend income at fair value. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. Interest income is accrued daily. Realized gains and losses on investment transactions are determined using the specific identification method.

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, stock dividends, capital gains on investments, or certain foreign currency transactions. 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 stock dividends are presented as “other foreign taxes,” and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable as of February 28, 2013, 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.

 

NOTES TO FINANCIAL STATEMENTS

      77   

Table of Contents

Notes to Financial Statements (Unaudited) (Continued)

iSHARES®, INC.

 

RECENT ACCOUNTING STANDARD

In December 2011, the Financial Accounting Standards Board issued guidance to enhance current disclosure requirements on offsetting of certain assets and liabilities and enable financial statement users to compare financial statements prepared under U.S. GAAP and International Financial Reporting Standards (IFRS). The new disclosures are required for investments and derivative financial instruments subject to master netting agreements or similar agreements and require an entity to disclose both gross and net information about such investments and transactions eligible for offset in the statement of assets and liabilities. In addition, the standard requires disclosure of collateral received and posted in connection with master netting agreements or similar agreements. The guidance is effective for financial statements for fiscal years beginning after January 1, 2013, and interim periods within those fiscal years. Management is evaluating the impact of this guidance on the Funds’ financial statements and disclosures.

 

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.

For its investment advisory services to each of the iShares MSCI Australia, iShares MSCI Hong Kong, iShares MSCI Japan Small Cap, iShares MSCI Malaysia and iShares MSCI Singapore Index Funds, BFA is entitled to an annual investment advisory fee based on each Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:

 

Investment Advisory Fee      Aggregate Average Daily Net Assets
    0.59 %     

First $7 billion

    0.54       

Over $7 billion, up to and including $11 billion

    0.49       

Over $11 billion, up to and including $24 billion

    0.44       

Over $24 billion, up to and including $48 billion

    0.40       

Over $48 billion

For its investment advisory services to each of the iShares MSCI South Korea Capped, iShares MSCI Taiwan and iShares MSCI Thailand Capped Investable Market Index Funds, BFA is entitled to an annual investment advisory fee based on each Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:

 

Investment Advisory Fee      Aggregate Average Daily Net Assets
    0.74 %     

First $2 billion

    0.69       

Over $2 billion, up to and including $4 billion

    0.64       

Over $4 billion, up to and including $8 billion

    0.57       

Over $8 billion, up to and including $16 billion

    0.51       

Over $16 billion, up to and including $32 billion

    0.45       

Over $32 billion

For its investment advisory services to the iShares MSCI Pacific ex-Japan Index Fund, BFA is entitled to an annual investment advisory fee of 0.50% based on the Fund’s allocable portion of the aggregate of the average daily net assets (of the Fund and certain other iShares funds) up to $46 billion, and 0.475% on its allocable portion of the aggregate average daily net assets in excess of $46 billion.

 

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Notes to Financial Statements (Unaudited) (Continued)

iSHARES®, INC.

 

The U.S. Securities and Exchange Commission has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”) to serve as securities lending agent for the Funds, subject to applicable conditions. BTC is an affiliate of BFA. Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, and any fees or other payments to and from borrowers of securities. Each Fund retains 65% of securities lending income and pays a fee to BTC equal to 35% of such income. The Funds benefit from a borrower default indemnity provided by BlackRock. As securities lending agent, BTC bears all operational costs directly related to securities lending as well as the cost of borrower default indemnification. BTC is also responsible for fees and expenses incurred by each Fund as a result of the investment of cash collateral received for securities on loan in a money market fund managed by BFA or an affiliate.

For the six months ended February 28, 2013, BTC earned securities lending agent fees from the Funds as follows:

 

iShares MSCI Index Fund   Securities Lending
Agent Fees		  

Australia

   $ 46,505   

Hong Kong

     205,096   

Japan Small Cap

     3,378   

Pacific ex-Japan

     245,982   

Singapore

     411,947   

South Korea Capped

     1,018,205   

Taiwan

     2,236,324   
 

 

For the six months ended February 28, 2013, BTC, the Funds’ securities lending agent, has agreed to voluntarily reimburse the iShares MSCI Taiwan Index Fund in the amount of $290,722, related to the foreign tax on the securities lending income. Such reimbursement is included in the “Securities lending income — affiliated” in the Fund’s Statement of Operations.

BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the 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.

The PNC Financial Services Group, Inc. is the largest stockholder of BlackRock and is considered to be an affiliate of the Funds for 1940 Act purposes.

Certain directors and officers of the Company are also officers of BTC and/or BFA.

 

NOTES TO FINANCIAL STATEMENTS

      79   

Table of Contents

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 six months ended February 28, 2013 were as follows:

 

iShares MSCI Index Fund    Purchases      Sales  

Australia

    $   78,118,953       $ 111,488,871   

Hong Kong

      267,702,389         141,019,985   

Japan Small Cap

      2,502,103         2,763,033   

Malaysia

      63,025,990         98,748,368   

Pacific ex-Japan

      135,934,601         158,002,604   

Singapore

      35,246,538         60,324,392   

South Korea Capped

      577,550,357         192,805,629   

Taiwan

      389,539,852         120,953,403   

Thailand Capped Investable Market

      139,040,193         108,566,605   

In-kind transactions (see Note 4) for the six months ended February 28, 2013 were as follows:

 

iShares MSCI Index Fund    In-kind
Purchases		      In-kind
Sales		  

Australia

    $ 219,516,836       $ 394,324,060   

Hong Kong

      1,165,737,125         64,929,520   

Japan Small Cap

      17,476,435         8,540,636   

Pacific ex-Japan

      766,596,074         55,272,624   

Singapore

      160,624,488         143,317,046   

Thailand Capped Investable Market

      279,374,342         51,448,177   

 

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 may also 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.

 

80    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

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Notes to Financial Statements (Unaudited) (Continued)

iSHARES®, INC.

 

5. LOANS OF PORTFOLIO SECURITIES

Each Fund may lend its investment securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter, at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Funds and any additional required collateral is delivered to the Funds on the next business day. The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Funds benefit from a borrower default indemnity provided by BlackRock. BlackRock’s indemnity allows for full replacement of securities lent. Any securities lending cash collateral may be reinvested in certain short-term instruments either directly on behalf of a fund or through one or more joint accounts or money market funds, including those managed by BFA or its affiliates. Each Fund could suffer a loss if the value of an investment purchased with cash collateral falls below the value of the cash collateral received.

As of February 28, 2013, any securities on loan were collateralized by cash. The cash collateral received was invested in money market funds managed by BFA. The value of any securities on loan as of February 28, 2013 and the value of the related collateral are disclosed in the statements of assets and liabilities. Securities lending income, as disclosed in the statements of operations, represents the income earned from the investment of the cash collateral, net of fees and other payments to and from borrowers, and less the fees paid to BTC as securities lending agent.

 

6. 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.

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

As of August 31, 2012, the Funds’ fiscal year-end, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:

 

iShares MSCI
Index Fund		   Non-
Expiringa 		    Expiring
2013		     Expiring
2014		     Expiring
2015		     Expiring
2016		     Expiring
2017		     Expiring
2018		     Expiring
2019		     Total  

Australia

   $ 23,345,303      $ 384,424      $ —      $ 7,066      $ 529,868      $ 24,006,125      $ 23,348,244      $ 12,127,364      $ 83,748,394   

Hong Kong

     36,014,089        468,716        425,440        2,899,247        3,185,408        29,235,556        114,836,904        34,565,959        221,631,319   

Japan Small Cap

     486,584        —        —        —        —        131,718        541,322        203,697        1,363,321   

Malaysia

     —        —        —        —        —        39,171,645        —        —        39,171,645   

Pacific ex-Japan

     59,368,214        —        —        —        —        66,207,828        104,799,503        36,600,987        266,976,532   

Singapore

     12,674,147        2,558,348        —        —        807,115        15,680,510        132,420,824        11,588,528        175,729,472   

South Korea Capped

     —        —        —        —        —        60,990,953        226,591,665        78,503,704        366,086,322   

Taiwan

     4,857,121        12,022,719        14,435,986        64,999,586        16,734,578        343,375,145        363,052,013        19,669,958        839,147,106   

Thailand Capped Investable Market

     2,373,181        —        —        —        —        555,444        2,321,428        1,304,910        6,554,963   

 

  a   

Must be utilized prior to losses subject to expiration.

 

NOTES TO FINANCIAL STATEMENTS

      81   

Table of Contents

Notes to Financial Statements (Unaudited) (Continued)

iSHARES®, INC.

 

The Funds may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” The Funds may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.

As of February 28, 2013, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

 

iShares MSCI Index Fund    Tax Cost      Gross
Unrealized
Appreciation		      Gross
Unrealized
Depreciation		     Net Unrealized
Appreciation
(Depreciation)		  

Australia

    $ 2,460,511,377       $ 401,100,754       $ (206,183,602 )    $ 194,917,152   

Hong Kong

      3,298,907,158         408,705,548         (109,828,013 )      298,877,535   

Japan Small Cap

      58,833,334         4,743,492         (6,144,567 )      (1,401,075 ) 

Malaysia

      506,159,239         445,688,240         (47,167,893 )      398,520,347   

Pacific ex-Japan

      3,653,776,503         1,056,924,803         (251,828,940 )      805,095,863   

Singapore

      1,526,020,614         252,912,896         (113,961,873 )      138,951,023   

South Korea Capped

      2,220,651,391         1,760,275,075         (511,949,324 )      1,248,325,751   

Taiwan

      2,187,771,759         1,004,656,227         (238,006,919 )      766,649,308   

Thailand Capped Investable Market

      843,962,470         222,006,012         (25,074,518 )      196,931,494   

Management has reviewed the tax positions as of February 28, 2013, inclusive of the open tax return years, and has determined that no provision for income tax is required in the Funds’ financial statements.

 

7. FINANCIAL FUTURES CONTRACTS

Each Fund may purchase or sell financial futures contracts in an effort to help such Fund track its underlying index. A futures contract is a standardized, exchange-traded agreement to buy and sell a financial instrument at a set price on a future date. Upon entering into a futures contract, the Fund is required to pledge to the executing broker which holds segregated from its own assets, an amount of cash, U.S. government securities or other high-quality debt and equity securities equal to the minimum initial margin requirements of the exchange on which the contract is traded. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as margin variation and are recorded by the Fund as unrealized appreciation or depreciation. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Losses may arise if the value of a futures contract decreases due to an unfavorable change in the market rates or values of the underlying instrument during the term of the contract or if the counterparty does not perform under the contract. The use of futures contracts also involves the risk of an imperfect correlation in the movements in the price of futures contracts and the assets underlying such contracts.

 

82    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

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Notes to Financial Statements (Unaudited) (Continued)

iSHARES®, INC.

 

The following table shows the value of futures contracts held by the Funds as of February 28, 2013 and the related locations in the statements of assets and liabilities, presented by risk exposure category:

 

Assets  
      iShares
MSCI Australia
Index Fund		      iShares
MSCI Hong Kong
Index Fund		  

Equity contracts:

      

Variation margin/Net assets consist of — net unrealized appreciation (depreciation)a

    $ 865,094       $ 63,709   
  

 

 

     

 

 

  
                   

 

  a   

Represents cumulative appreciation of futures contracts as reported in the schedules of investments.

    
Liabilities  
      iShares
MSCI Singapore
Index Fund		     iShares
MSCI Taiwan
Index Fund		  

Equity contracts:

     

Variation margin/Net assets consist of — net unrealized appreciation (depreciation)a

    $ (30,539 )    $ (24,962 )b 
  

 

 

    

 

 

  
                  

 

  a   

Represents cumulative depreciation of futures contracts as reported in the schedules of investments.

  b   

Only current day’s variation margin is reported in the statements of assets and liabilities.

The following table shows the realized and unrealized gains (losses) on futures contracts held by the Funds during the six months ended February 28, 2013 and the related locations in the statements of operations, presented by risk exposure category:

 

      Net Realized Gain (Loss)  
      iShares
MSCI Australia
Index Fund		      iShares
MSCI Hong Kong
Index Fund		      iShares
MSCI Singapore
Index Fund		      iShares
MSCI Taiwan
Index Fund		  

Equity contracts:

            

Futures contracts

    $ 1,817,979       $ 1,524,347       $ 306,952       $ 607,511   
  

 

 

     

 

 

     

 

 

     

 

 

  
           
      Net Change in Unrealized Appreciation/Depreciation  
      iShares
MSCI Australia
Index Fund		      iShares
MSCI Hong Kong
Index Fund		      iShares
MSCI Singapore
Index Fund		      iShares
MSCI Taiwan
Index Fund		  

Equity contracts:

            

Futures contracts

    $ 915,113       $ 87,084       $ 13,360       $ 141,032   
  

 

 

     

 

 

     

 

 

     

 

 

  
                                     

 

NOTES TO FINANCIAL STATEMENTS

      83   

Table of Contents

Notes to Financial Statements (Unaudited) (Continued)

iSHARES®, INC.

 

The following table shows the average quarter-end balances of open futures contracts for the six months ended February 28, 2013:

 

     iShares
MSCI Australia
Index Fund		     iShares
MSCI Hong Kong
Index Fund		     iShares
MSCI Singapore
Index Fund		     iShares
MSCI Taiwan
Index Fund		  

Average number of contracts purchased

     148        56        100        308   

Average value of contracts purchased

   $ 17,981,516      $ 7,793,647      $ 5,700,993      $ 8,118,367   

 

8. 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.

 

84    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

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 MSCI Index 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		  

Australia

    $ 0.68272       $ —       $ 0.21272       $ 0.89544         76 %      —   %      24 %      100 % 

Hong Kong

      0.12186         —         0.00998         0.13184         92        —          8        100   

Japan Small Cap

      0.65709         —         0.10728         0.76437         86        —          14        100   

Malaysia

      0.13209         —         0.01419         0.14628         90        —          10        100   

Pacific ex-Japan

      0.91722         —         0.18873         1.10595         83        —          17        100   

Singapore

      0.19897         —         0.14730         0.34627         57        —          43        100   

South Korea Capped

      —         —         0.36456         0.36456         —        —          100        100   

Taiwan

      0.24945         —         0.02144         0.27089         92        —          8        100   

 

SUPPLEMENTAL INFORMATION

      85   

Table of Contents

Notes:

 

 

86    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents
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 MSCI Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.

A description of the policies that the Funds use 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.

©2013 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.

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iS-SAR-83-0213

Table of Contents

FEBRUARY 28, 2013

 

 

2013 SEMI-ANNUAL REPORT (UNAUDITED)

 

     LOGO

 

iShares, Inc.

 

Ø    

iShares MSCI Brazil Capped Index Fund  |  EWZ  |  NYSE Arca

Ø    

iShares MSCI Canada Index Fund  |  EWC  |  NYSE Arca

Ø    

iShares MSCI Chile Capped Investable Market Index Fund  |  ECH  |  NYSE Arca

Ø    

iShares MSCI Israel Capped Investable Market Index Fund  |  EIS  |  NYSE Arca

Ø    

iShares MSCI Mexico Capped Investable Market Index Fund  |  EWW  |  NYSE Arca

Ø    

iShares MSCI South Africa Index Fund  |  EZA  |  NYSE Arca

Ø    

iShares MSCI Turkey Investable Market Index Fund  |  TUR  |  NYSE Arca

Ø    

iShares MSCI USA Index Fund  |  EUSA  |  NYSE Arca

Table of Contents

Table of Contents

 

Fund Performance Overviews

      5   

Shareholder Expenses

      16   

Schedules of Investments

      18   

iShares MSCI Brazil Capped Index Fund

      18   

iShares MSCI Canada Index Fund

      21   

iShares MSCI Chile Capped Investable Market Index Fund

      24   

iShares MSCI Israel Capped Investable Market Index Fund

      26   

iShares MSCI Mexico Capped Investable Market Index Fund

      28   

iShares MSCI South Africa Index Fund

      30   

iShares MSCI Turkey Investable Market Index Fund

      32   

iShares MSCI USA Index Fund

      35   

Financial Statements

      45   

Financial Highlights

      55   

Notes to Financial Statements

      63   

Supplemental Information

      74   

Table of Contents

Fund Performance Overview

iSHARES® MSCI BRAZIL CAPPED INDEX FUND

Performance as of February 28, 2013

 

Average Annual Total Returns
Year Ended 2/28/13   Five Years Ended 2/28/13   Ten Years Ended 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
(17.40)%   (17.94)%   (17.24)%   (4.45)%   (4.65)%   (4.05)%   25.62%   25.47%   26.73%
Cumulative Total Returns
Year Ended 2/28/13   Five Years Ended 2/28/13   Ten Years Ended 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
(17.40)%   (17.94)%   (17.24)%   (20.36)%   (21.17)%   (18.67)%   878.33%   866.83%   968.30%

Index performance through February 11, 2013 reflects the performance of the MSCI Brazil IndexSM. Index performance beginning on February 12, 2013 reflects the performance of the MSCI Brazil 25/50 Index.

“Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

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. 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.

 

FUND PERFORMANCE OVERVIEWS

      5   

Table of Contents

Fund Performance Overview (Continued)

iSHARES® MSCI BRAZIL CAPPED INDEX FUND

 

The iShares MSCI Brazil Capped Index Fund (the “Fund”), formerly the iShares MSCI Brazil Index Fund, seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI Brazil 25/50 Index (the “Index”). The Index is a free-float adjusted market capitalization-weighted index and consists of stocks traded primarily on the BM&FBOVESPA (the Brazilian exchange). 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 February 28, 2013, the total return for the Fund was 6.29%, net of fees, while the total return for the Index was 6.86%*.

 

*

Index performance through February 11, 2013 reflects the performance of the MSCI Brazil IndexSM. Index performance beginning on February 12, 2013 reflects the performance of the MSCI Brazil 25/50 Index.

 

PORTFOLIO ALLOCATION

As of 2/28/13

 

Sector    Percentage of
Net Assets

Financial

      26.74 % 

Consumer Non-Cyclical

      23.05   

Basic Materials

      17.98   

Energy

      11.24   

Utilities

      6.53   

Consumer Cyclical

      4.10   

Communications

      3.56   

Industrial

      3.01   

Diversified

      2.55   

Technology

      0.55   

Short-Term and Other Net Assets

      0.69   
  

 

 

  

TOTAL

      100.00 % 
  

 

 

  

TEN LARGEST FUND HOLDINGS

As of 2/28/13

 

Security    Percentage of
Net Assets

Itau Unibanco Holding SA (Preferred)

      7.52 % 

Vale SA Class A (Preferred)

      6.81   

Petroleo Brasileiro SA (Preferred)

      6.61   

Companhia de Bebidas das Americas (Preferred)

      6.33   

Banco Bradesco SA (Preferred)

      6.25   

Petroleo Brasileiro SA

      4.14   

Vale SA

      4.00   

BRF — Brasil Foods SA

      3.00   

BM&F Bovespa SA

      2.57   

Itausa — Investimentos Itau SA (Preferred)

      2.55   
  

 

 

  

TOTAL

      49.78 % 
  

 

 

  
 

 

6    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Fund Performance Overview

iSHARES® MSCI CANADA INDEX FUND

Performance as of February 28, 2013

 

Average Annual Total Returns
Year Ended 2/28/13   Five Years Ended 2/28/13   Ten Years Ended 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
(0.40)%   (0.44)%   (0.19)%   (0.52)%   (0.56)%   (0.29)%   12.74%   12.66%   13.04%
Cumulative Total Returns
Year Ended 2/28/13   Five Years Ended 2/28/13   Ten Years Ended 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
(0.40)%   (0.44)%   (0.19)%   (2.57)%   (2.76)%   (1.44)%   231.72%   229.46%   240.70%

“Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

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. 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 MSCI Canada Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI Canada IndexSM (the “Index”). The Index consists of stocks traded primarily on the Toronto Stock Exchange. 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 February 28, 2013, the total return for the Fund was 4.60%, net of fees, while the total return for the Index was 4.73%.

 

PORTFOLIO ALLOCATION

As of 2/28/13

 

Sector    Percentage of
Net Assets

Financial

      35.89 % 

Energy

      25.46   

Basic Materials

      17.11   

Industrial

      6.80   

Communications

      4.80   

Consumer Non-Cyclical

      4.41   

Consumer Cyclical

      3.91   

Technology

      1.21   

Utilities

      1.15   

Short-Term and Other Assets, Less Liabilities

      (0.74 ) 
  

 

 

  

TOTAL

      100.00 % 
  

 

 

  

TEN LARGEST FUND HOLDINGS

As of 2/28/13

 

Security    Percentage of
Net Assets

Royal Bank of Canada

      7.23 % 

Toronto-Dominion Bank (The)

      6.08   

Bank of Nova Scotia

      5.66   

Suncor Energy Inc.

      3.74   

Canadian National Railway Co.

      3.53   

Bank of Montreal

      3.26   

Potash Corp. of Saskatchewan Inc.

      2.78   

Enbridge Inc.

      2.73   

Canadian Natural Resources Ltd.

      2.69   

TransCanada Corp.

      2.64   
  

 

 

  

TOTAL

      40.34 % 
  

 

 

  
 

 

FUND PERFORMANCE OVERVIEWS

      7   

Table of Contents

Fund Performance Overview

iSHARES® MSCI CHILE CAPPED INVESTABLE MARKET INDEX FUND

Performance as of February 28, 2013

 

Average Annual Total Returns
Year Ended 2/28/13   Five Years Ended 2/28/13   Inception to 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
(0.19)%   (1.16)%   0.13%   7.79%   7.53%   8.69%   7.36%   7.23%   8.17%
Cumulative Total Returns
Year Ended 2/28/13   Five Years Ended 2/28/13   Inception to 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
(0.19)%   (1.16)%   0.13%   45.53%   43.76%   51.67%   45.68%   44.72%   51.62%

Index performance through February 11, 2013 reflects the performance of the MSCI Chile Investable Market IndexSM. Index performance beginning on February 12, 2013 reflects the performance of the MSCI Chile IMI 25/50 Index.

Total returns for the period since inception are calculated from the inception date of the Fund (11/12/07). “Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

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 (11/16/07), 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.

 

8    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Fund Performance Overview (Continued)

iSHARES® MSCI CHILE CAPPED INVESTABLE MARKET INDEX FUND

 

The iShares MSCI Chile Capped Investable Market Index Fund (the “Fund”), formerly the iShares MSCI Chile Investable Market Index Fund, seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI Chile IMI 25/50 Index (the “Index”). The Index is a free-float adjusted market capitalization-weighted index designed to measure broad-based equity market performance in Chile. 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 February 28, 2013, the total return for the Fund was 10.37%, net of fees, while the total return for the Index was 10.59%*.

 

*

Index performance through February 11, 2013 reflects the performance of the MSCI Chile Investable Market IndexSM. Index performance beginning on February 12, 2013 reflects the performance of the MSCI Chile IMI 25/50 Index.

 

PORTFOLIO ALLOCATION

As of 2/28/13

 

Sector    Percentage of
Net Assets		  

Utilities

      21.48 % 

Financial

      16.72   

Consumer Cyclical

      13.82   

Basic Materials

      13.49   

Consumer Non-Cyclical

      13.20   

Diversified

      8.45   

Industrial

      4.12   

Communications

      3.13   

Technology

      2.36   

Short-Term and Other Net Assets

      3.23   
  

 

 

  

TOTAL

      100.00 % 
  

 

 

  

TEN LARGEST FUND HOLDINGS

As of 2/28/13

 

Security    Percentage of
Net Assets		  

Empresas Copec SA

      7.72 % 

LATAM Airlines Group SA

      6.87   

Cencosud SA

      6.48   

Empresa Nacional de Electricidad SA

      5.88   

S.A.C.I. Falabella SA

      5.74   

Enersis SA

      5.33   

Sociedad Quimica y Minera de Chile SA Series B (Preferred)

      5.30   

Banco Santander (Chile) SA

      4.54   

Empresas CMPC SA

      4.43   

Banco de Chile

      3.68   
  

 

 

  

TOTAL

      55.97 % 
  

 

 

  
 

 

FUND PERFORMANCE OVERVIEWS

      9   

Table of Contents

Fund Performance Overview

iSHARES® MSCI ISRAEL CAPPED INVESTABLE MARKET INDEX FUND

Performance as of February 28, 2013

 

Average Annual Total Returns   Cumulative Total Returns
Year Ended 2/28/13   Inception to 2/28/13   Inception to 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
9.93%   10.35%   9.38%   (0.29)%   (0.22)%   0.19%   (1.42)%   (1.07)%   0.95%

Total returns for the period since inception are calculated from the inception date of the Fund (3/26/08). “Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

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 (3/28/08), 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 MSCI Israel Capped Investable Market Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI Israel Capped Investable Market IndexSM (the “Index”). The Index is a custom, free-float adjusted market capitalization-weighted index designed to measure broad-based equity market performance in Israel. 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 February 28, 2013, the total return for the Fund was 18.35%, net of fees, while the total return for the Index was 17.89%.

 

PORTFOLIO ALLOCATION

As of 2/28/13

 

Sector    Percentage of
Net Assets

Financial

      37.51 % 

Consumer Non-Cyclical

      26.19   

Basic Materials

      11.92   

Communications

      10.76   

Technology

      4.09   

Industrial

      3.72   

Energy

      3.51   

Consumer Cyclical

      1.26   

Diversified

      0.80   

Short-Term and Other Net Assets

      0.24   
  

 

 

  

TOTAL

      100.00 % 
  

 

 

  

TEN LARGEST FUND HOLDINGS

As of 2/28/13

 

Security    Percentage of
Net Assets

Teva Pharmaceutical Industries Ltd.

      21.84 % 

Israel Chemicals Ltd.

      10.67   

Bank Hapoalim BM

      8.50   

Bank Leumi le-Israel BM

      8.06   

Bezeq The Israel Telecommunication Corp. Ltd.

      4.72   

NICE Systems Ltd.

      4.06   

Mellanox Technologies Ltd.

      3.47   

Israel Corp. Ltd. (The)

      3.20   

Israel Discount Bank Ltd. Class A

      2.73   

Mizrahi Tefahot Bank Ltd.

      2.59   
  

 

 

  

TOTAL

      69.84 % 
  

 

 

  
 

 

10    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Fund Performance Overview

iSHARES® MSCI MEXICO CAPPED INVESTABLE MARKET INDEX FUND

Performance as of February 28, 2013

 

Average Annual Total Returns
Year Ended 2/28/13   Five Years Ended 2/28/13   Ten Years Ended 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
20.99%   21.61%   19.94%   6.62%   6.65%   5.78%   21.56%   21.59%   20.80%
Cumulative Total Returns
Year Ended 2/28/13   Five Years Ended 2/28/13   Ten Years Ended 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
20.99%   21.61%   19.94%   37.76%   38.00%   32.42%   604.68%   606.18%   561.66%

Index performance through November 30, 2007 reflects the performance of the MSCI Mexico IndexSM. Index performance beginning on December 1, 2007 through February 11, 2013 reflects the performance of the MSCI Mexico Investable Market IndexSM. Index performance beginning on February 12, 2013 reflects the performance of the MSCI Mexico IMI 25/50 Index.

“Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

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. 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.

 

FUND PERFORMANCE OVERVIEWS

      11   

Table of Contents

Fund Performance Overview (Continued)

iSHARES® MSCI MEXICO CAPPED INVESTABLE MARKET INDEX FUND

 

The iShares MSCI Mexico Capped Investable Market Index Fund (the “Fund”), formerly the iShares MSCI Mexico Investable Market Index Fund, seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI Mexico IMI 25/50 Index (the “Index”). The Index is a free-float adjusted market capitalization-weighted index and consists of stocks traded primarily on the Mexican Stock Exchange. 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 February 28, 2013, the total return for the Fund was 17.36%, net of fees, while the total return for the Index was 16.36%*.

 

*

Index performance through February 11, 2013 reflects the performance of the MSCI Mexico Investable Market IndexSM. Index performance beginning on February 12, 2013 reflects the performance of the MSCI Mexico IMI 25/50 Index.

 

PORTFOLIO ALLOCATION

As of 2/28/13

 

Sector    Percentage of
Net Assets

Consumer Non-Cyclical

      24.46 % 

Communications

      23.07   

Basic Materials

      14.82   

Financial

      12.09   

Industrial

      10.25   

Consumer Cyclical

      10.08   

Diversified

      5.01   

Short-Term and Other Net Assets

      0.22   
  

 

 

  

TOTAL

      100.00 % 
  

 

 

  

TEN LARGEST FUND HOLDINGS

As of 2/28/13

 

Security    Percentage of
Net Assets

America Movil SAB de CV Series L

      17.57 % 

Fomento Economico Mexicano SAB de CV BD Units

      9.86   

Wal-Mart de Mexico SAB de CV Series V

      7.12   

Grupo Mexico SAB de CV Series B

      6.43   

Grupo Financiero Banorte SAB de CV Series O

      5.15   

Grupo Televisa SAB de CV CPO

      4.80   

Cemex SAB de CV CPO

      4.69   

Alfa SAB de CV Series A

      3.56   

Coca-Cola FEMSA SAB de CV Series L

      3.43   

Industrias Penoles SAB de CV

      3.27   
  

 

 

  

TOTAL

      65.88 % 
  

 

 

  
 

 

12    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Fund Performance Overview

iSHARES® MSCI SOUTH AFRICA INDEX FUND

Performance as of February 28, 2013

 

Average Annual Total Returns
Year Ended 2/28/13   Five Years Ended 2/28/13   Ten Years Ended 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
(5.54)%   (4.52)%   (4.92)%   5.11%   5.38%   6.12%   16.12%   16.07%   17.24%
Cumulative Total Returns
Year Ended 2/28/13   Five Years Ended 2/28/13   Ten Years Ended 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
(5.54)%   (4.52)%   (4.92)%   28.28%   29.94%   34.57%   345.81%   344.00%   390.50%

“Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

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. 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 MSCI South Africa Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI South Africa IndexSM (the “Index”). The Index consists of stocks traded primarily on the Johannesburg Stock Exchange. 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 February 28, 2013, the total return for the Fund was 1.99%, net of fees, while the total return for the Index was 2.34%.

 

PORTFOLIO ALLOCATION

As of 2/28/13

 

Sector    Percentage of
Net Assets

Financial

      24.78 % 

Basic Materials

      23.57   

Communications

      23.01   

Consumer Non-Cyclical

      9.65   

Diversified

      8.13   

Consumer Cyclical

      8.12   

Industrial

      1.22   

Energy

      0.87   

Technology

      0.58   

Short-Term and Other Net Assets

      0.07   
  

 

 

  

TOTAL

      100.00 % 
  

 

 

  

 

TEN LARGEST FUND HOLDINGS

As of 2/28/13

 

Security    Percentage of
Net Assets

MTN Group Ltd.

      12.01 % 

Naspers Ltd. Class N

      9.21   

Sasol Ltd.

      8.50   

Standard Bank Group Ltd.

      5.66   

FirstRand Ltd.

      3.86   

AngloGold Ashanti Ltd.

      3.41   

Sanlam Ltd.

      3.26   

Impala Platinum Holdings Ltd.

      3.01   

Remgro Ltd.

      2.97   

Shoprite Holdings Ltd.

      2.97   
  

 

 

  

TOTAL

      54.86 % 
  

 

 

  
 

 

FUND PERFORMANCE OVERVIEWS

      13   

Table of Contents

Fund Performance Overview

iSHARES® MSCI TURKEY INVESTABLE MARKET INDEX FUND

Performance as of February 28, 2013

 

Average Annual Total Returns   Cumulative Total Returns
Year Ended 2/28/13   Inception to 2/28/13   Inception to 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
29.27%   30.03%   29.58%   7.91%   7.78%   8.27%   45.56%   44.69%   47.98%

Total returns for the period since inception are calculated from the inception date of the Fund (3/26/08). “Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

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 (3/28/08), 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 MSCI Turkey Investable Market Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI Turkey Investable Market IndexSM (the “Index”). The Index is a free-float adjusted market capitalization-weighted index designed to measure broad-based equity market performance in Turkey. 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 February 28, 2013, the total return for the Fund was 18.17%, net of fees, while the total return for the Index was 18.44%.

 

PORTFOLIO ALLOCATION

As of 2/28/13

 

Sector    Percentage of
Net Assets

Financial

      45.87 % 

Consumer Non-Cyclical

      12.31   

Diversified

      9.78   

Consumer Cyclical

      8.71   

Communications

      8.54   

Industrial

      5.29   

Basic Materials

      4.99   

Energy

      3.88   

Utilities

      0.60   

Short-Term and Other Net Assets

      0.03   
  

 

 

  

TOTAL

      100.00 % 
  

 

 

  

TEN LARGEST FUND HOLDINGS

As of 2/28/13

 

Security    Percentage of
Net Assets

Turkiye Garanti Bankasi AS

      12.22 % 

Akbank TAS

      9.68   

Turkiye Halk Bankasi AS

      6.85   

Turkiye Is Bankasi AS Class C

      6.22   

Turkcell Iletisim Hizmetleri AS

      5.66   

BIM Birlesik Magazalar AS

      5.57   

Haci Omer Sabanci Holding AS

      4.74   

Turkiye Petrol Rafinerileri AS

      3.88   

KOC Holding AS

      3.69   

Anadolu Efes Biracilik ve Malt Sanayii AS

      3.44   
  

 

 

  

TOTAL

      61.95 % 
  

 

 

  
 

 

14    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Fund Performance Overview

iSHARES® MSCI USA INDEX FUND

Performance as of February 28, 2013

 

Average Annual Total Returns   Cumulative Total Returns
Year Ended 2/28/13   Inception to 2/28/13   Inception to 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
13.10%   12.95%   13.29%   12.09%   12.06%   12.29%   37.97%   37.85%   38.66%

Total returns for the period since inception are calculated from the inception date of the Fund (5/5/10). “Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

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 (5/7/10), 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 MSCI USA Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI USA IndexSM (the “Index”). The Index is a market capitalization-weighted index designed to measure the performance of equity securities in the top 85% by market capitalization of equity securities listed on stock exchanges in the United States. 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 February 28, 2013, the total return for the Fund was 9.03%, net of fees, while the total return for the Index was 9.12%.

 

PORTFOLIO ALLOCATION

As of 2/28/13

 

Sector    Percentage of
Net Assets

Consumer Non-Cyclical

      21.68 % 

Financial

      15.97   

Technology

      12.76   

Communications

      11.74   

Energy

      11.15   

Industrial

      10.36   

Consumer Cyclical

      9.46   

Utilities

      3.31   

Basic Materials

      3.23   

Diversified

      0.04   

Short-Term and Other Net Assets

      0.30   
  

 

 

  

TOTAL

      100.00 % 
  

 

 

  

 

TEN LARGEST FUND HOLDINGS

As of 2/28/13

 

Security    Percentage of
Net Assets

Apple Inc.

      2.91 % 

Exxon Mobil Corp.

      2.86   

General Electric Co.

      1.71   

Chevron Corp.

      1.60   

International Business Machines Corp.

      1.51   

Google Inc. Class A

      1.49   

Johnson & Johnson

      1.48   

Microsoft Corp.

      1.47   

Procter & Gamble Co. (The)

      1.46   

AT&T Inc.

      1.43   
  

 

 

  

TOTAL

      17.92 % 
  

 

 

  
 

 

FUND PERFORMANCE OVERVIEWS

      15   

Table of Contents

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 September 1, 2012 to February 28, 2013.

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 MSCI Index Fund    Beginning
Account Value
(9/1/12)		      Ending
Account Value
(2/28/13)		      Annualized
Expense Ratio		     Expenses Paid
During Period a		  

Brazil Capped

           

Actual

    $ 1,000.00       $ 1,062.90         0.60 %    $ 3.07   

Hypothetical (5% return before expenses)

      1,000.00         1,021.80         0.60        3.01   

Canada

           

Actual

      1,000.00         1,046.00         0.51        2.59   

Hypothetical (5% return before expenses)

      1,000.00         1,022.30         0.51        2.56   

Chile Capped Investable Market

           

Actual

      1,000.00         1,103.70         0.60        3.13   

Hypothetical (5% return before expenses)

      1,000.00         1,021.80         0.60        3.01   

Israel Capped Investable Market

           

Actual

      1,000.00         1,183.50         0.60        3.25   

Hypothetical (5% return before expenses)

      1,000.00         1,021.80         0.60        3.01   

 

16    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Shareholder Expenses (Unaudited) (Continued)

iSHARES®, INC.

 

iShares MSCI Index Fund    Beginning
Account Value
(9/1/12)		      Ending
Account Value
(2/28/13)		      Annualized
Expense Ratio		     Expenses Paid
During Period a		  

Mexico Capped Investable Market

           

Actual

    $ 1,000.00       $ 1,173.60         0.51 %    $ 2.75   

Hypothetical (5% return before expenses)

      1,000.00         1,022.30         0.51        2.56   

South Africa

           

Actual

      1,000.00         1,019.90         0.60        3.00   

Hypothetical (5% return before expenses)

      1,000.00         1,021.80         0.60        3.01   

Turkey Investable Market

           

Actual

      1,000.00         1,181.70         0.60        3.25   

Hypothetical (5% return before expenses)

      1,000.00         1,021.80         0.60        3.01   

USA

           

Actual

      1,000.00         1,090.30         0.15        0.78   

Hypothetical (5% return before expenses)

      1,000.00         1,024.10         0.15        0.75   

 

a 

Expenses 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 (181 days) and divided by the number of days in the year (365 days).

 

 

SHAREHOLDER EXPENSES

      17   

Table of Contents

Schedule of Investments (Unaudited)

iSHARES® MSCI BRAZIL CAPPED INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

COMMON STOCKS — 50.77%

  

AEROSPACE & DEFENSE — 1.05%

  

  

Embraer SA

     10,393,532      $ 87,896,341   
   

 

 

  
      87,896,341   

AGRICULTURE — 1.32%

    

Souza Cruz SA

     6,923,600        110,624,917   
   

 

 

  
      110,624,917   

BANKS — 4.85%

    

Banco Bradesco SA

     9,281,100        165,333,236   

Banco do Brasil SA

     10,412,897        138,726,269   

Banco Santander (Brasil) SA Units

     14,039,341        102,112,045   
   

 

 

  
      406,171,550   

BEVERAGES — 1.05%

    

Companhia de Bebidas das Americas

     2,001,200        88,354,028   
   

 

 

  
      88,354,028   

BUILDING MATERIALS — 0.34%

    

Duratex SA

     3,443,300        28,823,335   
   

 

 

  
      28,823,335   

CHEMICALS — 1.85%

    

Ultrapar Participacoes SA

     5,970,200        154,909,342   
   

 

 

  
      154,909,342   

COMMERCIAL SERVICES — 6.55%

    

Anhanguera Educacional Participacoes SA

     2,335,800        48,438,521   

Arteris SA

     2,576,100        27,753,240   

CCR SA

     15,745,400        158,083,147   

Cielo SA

     5,385,160        161,873,481   

EcoRodovias Infraestrutura e Logistica SA

     3,393,300        29,468,899   

Kroton Educacional SAa

     1,125,800        29,495,949   

Localiza Rent A Car SA

     2,650,400        50,324,220   

Multiplus SA

     1,013,100        18,882,573   

Qualicorp SAa

     2,155,900        24,131,337   
   

 

 

  
      548,451,367   

COSMETICS & PERSONAL CARE — 1.00%

  

  

Natura Cosmeticos SA

     3,246,500        83,908,831   
   

 

 

  
      83,908,831   

DIVERSIFIED FINANCIAL SERVICES — 3.16%

  

  

BM&F Bovespa SA

     31,725,300        215,181,970   

CETIP SA — Mercados Organizados

     4,114,125        49,733,239   
   

 

 

  
      264,915,209   
Security   Shares     Value  
   

ELECTRIC — 2.20%

  

Centrais Eletricas Brasileiras SA

     5,669,699      $ 19,930,407   

CPFL Energia SA

     4,634,800        47,306,795   

EDP Energias do Brasil SA

     4,829,300        29,335,842   

Light SA

     1,394,600        13,613,767   

MPX Energia SAa

     3,235,700        17,200,550   

Tractebel Energia SA

     3,209,000        56,807,951   
   

 

 

  
      184,195,312   

ENGINEERING & CONSTRUCTION — 0.51%

  

Multiplan Empreendimentos Imobiliarios SA

     1,484,800        42,544,090   
   

 

 

  
      42,544,090   

FOOD — 4.06%

  

BRF — Brasil Foods SA

     11,571,950        251,385,996   

Cosan SA Industria e Comercio

     2,352,790        55,526,367   

JBS SAa

     9,544,822        33,117,940   
   

 

 

  
      340,030,303   

FOREST PRODUCTS & PAPER — 0.66%

  

Fibria Celulose SAa

     4,878,626        55,347,520   
   

 

 

  
      55,347,520   

HEALTH CARE — SERVICES — 0.81%

  

Amil Participacoes SA

     2,363,000        37,445,142   

Diagnosticos da America SA

     4,445,900        30,694,722   
   

 

 

  
      68,139,864   

HOME BUILDERS — 0.50%

  

MRV Engenharia e Participacoes SA

     6,559,347        42,134,291   
   

 

 

  
      42,134,291   

INSURANCE — 0.91%

  

Odontoprev SA

     4,142,000        19,190,087   

Porto Seguro SA

     2,541,800        33,747,534   

Sul America SA Units

     2,467,037        23,546,097   
   

 

 

  
      76,483,718   

IRON & STEEL — 4.90%

  

Companhia Siderurgica Nacional SA

     14,396,154        72,814,496   

Vale SA

     17,529,800        335,150,695   

Vale SA SP ADR

     136,653        2,595,041   
   

 

 

  
      410,560,232   

MACHINERY — 0.57%

  

WEG SA

     3,568,400        47,810,893   
   

 

 

  
      47,810,893   
 

 

18    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI BRAZIL CAPPED INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

OIL & GAS — 4.63%

  

OGX Petroleo e Gas Participacoes SAa

     25,819,400      $ 41,136,569   

Petroleo Brasileiro SA

     47,250,344        346,293,806   
   

 

 

  
      387,430,375   

PHARMACEUTICALS — 0.75%

  

Hypermarcas SAa

     7,058,200        62,438,884   
   

 

 

  
      62,438,884   

REAL ESTATE — 2.87%

  

BR Malls Participacoes SA

     7,664,900        99,247,099   

BR Properties SA

     3,663,000        45,576,754   

Cyrela Brazil Realty SA Empreendimentos e Participacoes

     6,110,300        53,775,338   

PDG Realty SA Empreendimentos e Participacoes

     25,490,900        41,386,773   
   

 

 

  
      239,985,964   

RETAIL — 1.81%

  

Lojas Americanas SA

     2,076,500        18,064,741   

Lojas Renner SA

     2,365,900        90,179,669   

Raia Drogasil SA

     3,722,700        42,967,991   
   

 

 

  
      151,212,401   

SOFTWARE — 0.55%

  

Totvs SA

     2,064,300        45,679,594   
   

 

 

  
      45,679,594   

TELECOMMUNICATIONS — 1.11%

  

Oi SA

     4,585,373        19,597,593   

TIM Participacoes SA

     16,785,290        73,437,236   
   

 

 

  
      93,034,829   

TEXTILES — 0.64%

  

Companhia Hering SA

     2,778,100        53,971,383   
   

 

 

  
      53,971,383   

TRANSPORTATION — 0.54%

  

ALL — America Latina Logistica SA

     9,156,000        45,384,047   
   

 

 

  
      45,384,047   

WATER — 1.58%

  

Companhia de Saneamento Basico do Estado de Sao Pauloa

     2,135,000        103,634,591   
Security   Shares     Value  
   

Companhia de Saneamento de Minas Gerais SA

     1,109,200      $ 28,780,517   
   

 

 

  
      132,415,108   
   

 

 

  

TOTAL COMMON STOCKS
(Cost: $3,355,554,492)

       4,252,853,728   

PREFERRED STOCKS — 48.54%

    

AUTO PARTS & EQUIPMENT — 0.34%

  

  

Marcopolo SA

     4,177,000        27,993,147   
   

 

 

  
      27,993,147   

BANKS — 14.16%

    

Banco Bradesco SA

     29,280,415        523,081,411   

Banco do Estado do Rio Grande do Sul SA Class B

     3,583,310        32,804,568   

Itau Unibanco Holding SA

     35,512,100        629,917,226   
   

 

 

  
      1,185,803,205   

BEVERAGES — 6.33%

  

Companhia de Bebidas das Americas

     11,938,532        530,172,025   
   

 

 

  
      530,172,025   

CHEMICALS — 0.30%

  

Braskem SA Class A

     3,423,036        25,242,964   
   

 

 

  
      25,242,964   

ELECTRIC — 2.75%

  

AES Tiete SA

     2,234,400        23,043,557   

Centrais Eletricas Brasileiras SA Class B

     4,431,151        28,105,120   

Companhia Energetica de Minas Gerais

     9,018,393        106,874,183   

Companhia Energetica de Sao Paulo Class B

     3,052,170        28,312,578   

Companhia Paranaense de Energia Class B

     2,014,300        29,545,648   

Eletropaulo Metropolitana Eletricidade de Sao Paulo SA

     2,397,220        14,489,292   
   

 

 

  
      230,370,378   

FOOD — 1.18%

  

Companhia Brasileira de Distribuicao Grupo Pao de Acucar Class A

     1,962,564        98,470,664   
   

 

 

  
      98,470,664   
 

 

SCHEDULES OF INVESTMENTS

      19   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI BRAZIL CAPPED INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

FOREST PRODUCTS & PAPER — 0.69%

  

Klabin SA

     8,572,700      $ 57,712,122   
   

 

 

  
      57,712,122   

HOLDING COMPANIES — DIVERSIFIED — 3.34%

  

Bradespar SA

     4,507,900        66,235,646   

Itausa — Investimentos Itau SA

     40,799,688        213,583,921   
   

 

 

  
      279,819,567   

IRON & STEEL — 9.58%

  

Gerdau SA

     15,938,546        132,612,959   

Metalurgica Gerdau SA

     5,356,290        56,757,005   

Usinas Siderurgicas de Minas Gerais SA Class A

     8,570,900        42,483,850   

Vale SA Class A

     30,877,900        570,829,622   
   

 

 

  
      802,683,436   

OIL & GAS — 6.61%

  

Petroleo Brasileiro SA

     65,906,878        553,696,446   
   

 

 

  
      553,696,446   

RETAIL — 0.81%

  

Lojas Americanas SA

     7,454,805        68,096,595   
   

 

 

  
      68,096,595   

TELECOMMUNICATIONS — 2.45%

  

Oi SA

     16,231,793        60,342,764   

Telefonica Brasil SA

     5,497,974        144,992,344   
   

 

 

  
      205,335,108   
   

 

 

  

TOTAL PREFERRED STOCKS

  

  

(Cost: $2,549,910,081)

  

     4,065,395,657   

RIGHTS — 0.00%

    

BEVERAGES — 0.00%

    

Companhia de Bebidas das Americasa

     3,264        —   

Companhia de Bebidas das Americas Preferreda

     19,341        —   
   

 

 

  
      —   
   

 

 

  

TOTAL RIGHTS

    

(Cost: $0)

       —   
Security   Shares     Value  
   

SHORT-TERM INVESTMENTS — 0.01%

  

MONEY MARKET FUNDS — 0.01%

  

BlackRock Cash Funds: Treasury,
SL Agency Shares

    

0.04%b,c

     811,745      $ 811,745   
   

 

 

  
      811,745   
   

 

 

  

TOTAL SHORT-TERM INVESTMENTS

  

  

(Cost: $811,745)

       811,745   
   

 

 

  

TOTAL INVESTMENTS
IN SECURITIES — 99.32%

    

(Cost: $5,906,276,318)

       8,319,061,130   

Other Assets, Less Liabilities — 0.68%

  

     56,956,995   
   

 

 

  

NET ASSETS — 100.00%

  

   $ 8,376,018,125   
 

 

 

  

 

SP ADR  —  Sponsored American Depositary Receipts

 

a 

Non-income earning security.

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.

 

 

20    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited)

iSHARES® MSCI CANADA INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

COMMON STOCKS — 100.74%

  

AEROSPACE & DEFENSE — 0.20%

    

CAE Inc.

     985,394      $ 9,661,759   
   

 

 

  
      9,661,759   

APPAREL — 0.34%

    

Gildan Activewear Inc.

     438,002        16,155,864   
   

 

 

  
      16,155,864   

AUTO PARTS & EQUIPMENT — 0.95%

  

Magna International Inc. Class A

     840,083        44,821,315   
   

 

 

  
      44,821,315   

BANKS — 25.85%

    

Bank of Montreal

     2,467,692        154,127,234   

Bank of Nova Scotia

     4,475,058        267,402,182   

Canadian Imperial Bank of Commerce

     1,533,638        124,027,687   

National Bank of Canada

     610,873        46,680,787   

Royal Bank of Canada

     5,480,199        341,269,724   

Toronto-Dominion Bank (The)

     3,482,024        287,388,489   
   

 

 

  
      1,220,896,103   

CHEMICALS — 4.03%

    

Agrium Inc.

     566,300        58,825,132   

Potash Corp. of Saskatchewan Inc.

     3,264,306        131,391,452   
   

 

 

  
      190,216,584   

COMMERCIAL SERVICES — 0.16%

    

Ritchie Bros. Auctioneers Inc.a

     341,190        7,749,415   
   

 

 

  
      7,749,415   

COMPUTERS — 0.95%

    

CGI Group Inc. Class Ab

     779,235        20,654,787   

Research In Motion Ltd.a,b

     1,788,577        24,322,072   
   

 

 

  
      44,976,859   

DIVERSIFIED FINANCIAL SERVICES — 0.69%

  

  

CI Financial Corp.

     590,279        15,502,683   

IGM Financial Inc.

     383,471        17,001,710   
   

 

 

  
      32,504,393   

ELECTRIC — 0.81%

    

Fortis Inc.

     722,998        23,672,110   

TransAlta Corp.

     965,931        14,469,469   
   

 

 

  
      38,141,579   

ENGINEERING & CONSTRUCTION — 0.55%

  

SNC-Lavalin Group Inc.

     572,634        25,967,800   
   

 

 

  
      25,967,800   
Security   Shares     Value  
   

FOOD — 1.82%

  

Empire Co. Ltd. Class A

     114,956      $ 7,408,040   

George Weston Ltd.

     194,400        14,097,096   

Loblaw Companies Ltd.a

     426,931        17,221,758   

Metro Inc. Class A

     368,277        23,137,991   

Saputo Inc.

     485,504        24,104,007   
   

 

 

  
      85,968,892   

FOREST PRODUCTS & PAPER — 0.00%

  

Sino-Forest Corp. Class Aa,b,c

     841,337        8   
   

 

 

  
      8   

GAS — 0.35%

  

Canadian Utilities Ltd. Class A

     216,329        16,362,767   
   

 

 

  
      16,362,767   

HAND & MACHINE TOOLS — 0.35%

  

Finning International Inc.

     651,777        16,566,250   
   

 

 

  
      16,566,250   

HOLDING COMPANIES — DIVERSIFIED — 0.33%

  

Onex Corp.

     348,062        15,743,284   
   

 

 

  
      15,743,284   

INSURANCE — 6.42%

  

Great-West Lifeco Inc.

     1,080,452        28,796,639   

Industrial Alliance Insurance and Financial Services Inc.

     368,117        13,248,703   

Intact Financial Corp.

     505,851        32,234,132   

Manulife Financial Corp.

     6,906,131        102,780,803   

Power Corp. of Canada

     1,325,044        35,521,825   

Power Financial Corp.

     939,737        27,267,501   

Sun Life Financial Inc.

     2,263,364        63,428,352   
   

 

 

  
      303,277,955   

MANUFACTURING — 0.47%

  

Bombardier Inc. Class B

     5,461,118        22,045,270   
   

 

 

  
      22,045,270   

MEDIA — 1.65%

  

Shaw Communications Inc. Class B

     1,441,204        34,584,410   

Thomson Reuters Corp.

     1,410,147        43,221,372   
   

 

 

  
      77,805,782   

MINING — 13.09%

  

Agnico-Eagle Mines Ltd.

     651,618        26,215,574   

Barrick Gold Corp.

     3,794,162        115,406,299   

Cameco Corp.

     1,498,966        32,077,479   

Centerra Gold Inc.

     631,875        4,118,051   
 

 

SCHEDULES OF INVESTMENTS

      21   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI CANADA INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Eldorado Gold Corp.

     2,571,089      $ 25,459,546   

First Quantum Minerals Ltd.

     1,805,937        33,745,489   

Franco-Nevada Corp.

     555,761        26,964,991   

Goldcorp Inc.

     3,076,685        100,735,584   

IAMGOLD Corp.

     1,427,439        9,650,018   

Inmet Mining Corp.

     197,260        13,028,504   

Kinross Gold Corp.

     4,321,348        32,997,015   

New Gold Inc.b

     1,755,004        15,705,498   

Osisko Mining Corp.b

     1,672,724        9,713,693   

Pan American Silver Corp.

     579,571        9,634,617   

Silver Wheaton Corp.

     1,343,355        42,729,156   

Teck Resources Ltd. Class B

     2,186,513        67,910,471   

Turquoise Hill Resources Ltd.b

     1,523,914        9,768,584   

Yamana Gold Inc.

     2,849,351        42,073,001   
   

 

 

  
      617,933,570   

OIL & GAS — 19.43%

  

  

ARC Resources Ltd.

     1,109,162        28,051,371   

Athabasca Oil Corp.b

     1,212,758        11,961,836   

Baytex Energy Corp.

     459,698        19,258,978   

Bonavista Energy Corp.

     662,533        8,455,263   

Canadian Natural Resources Ltd.

     4,149,558        127,225,396   

Canadian Oil Sands Ltd.

     1,837,234        37,725,801   

Cenovus Energy Inc.

     2,862,335        92,965,678   

Crescent Point Energy Corp.

     1,411,085        53,873,923   

Encana Corp.

     2,788,449        50,314,410   

Enerplus Corp.

     752,072        10,249,043   

Husky Energy Inc.

     1,303,257        40,198,706   

Imperial Oil Ltd.

     1,124,834        46,916,864   

MEG Energy Corp.b

     542,109        17,559,681   

Nexen Inc.

     2,036,050        56,028,262   

Pacific Rubiales Energy Corp.

     1,145,796        28,141,967   

Pengrowth Energy Corp.

     1,929,997        8,241,512   

Penn West Petroleum Ltd.

     1,817,545        17,714,898   

Suncor Energy Inc.

     5,808,756        176,570,814   

Talisman Energy Inc.

     3,914,547        49,310,232   

Tourmaline Oil Corp.b

     506,623        18,115,326   

Vermilion Energy Inc.

     356,175        18,490,404   
   

 

 

  
      917,370,365   

PHARMACEUTICALS — 2.43%

  

  

Catamaran Corp.b

     777,719        42,038,660   

Valeant Pharmaceuticals International Inc.b

     1,073,218        72,605,722   
   

 

 

  
      114,644,382   
Security   Shares     Value  
   

PIPELINES — 6.03%

  

  

Enbridge Inc.

     2,881,358      $ 128,870,036   

Pembina Pipeline Corp.

     1,105,162        31,110,732   

TransCanada Corp.

     2,672,958        124,905,309   
   

 

 

  
      284,886,077   

REAL ESTATE — 2.09%

  

  

Brookfield Asset Management Inc. Class A

     2,131,309        81,081,168   

Brookfield Office Properties Inc.

     1,051,825        17,597,773   
   

 

 

  
      98,678,941   

REAL ESTATE INVESTMENT TRUSTS — 0.49%

  

H&R Real Estate Investment Trusta

     360,951        8,145,580   

RioCan Real Estate Investment Trust

     551,534        14,941,123   
   

 

 

  
      23,086,703   

RETAIL — 2.62%

  

Alimentation Couche-Tard Inc. Class B

     524,617        27,260,386   

Canadian Tire Corp. Ltd. Class A NVS

     295,819        19,802,795   

Dollarama Inc.

     263,668        15,542,319   

Shoppers Drug Mart Corp.

     781,106        32,678,731   

Tim Hortons Inc.

     584,990        28,354,702   
   

 

 

  
      123,638,933   

SOFTWARE — 0.26%

  

Open Text Corp.a,b

     221,737        12,244,550   
   

 

 

  
      12,244,550   

TELECOMMUNICATIONS — 3.16%

  

BCE Inc.

     969,172        43,827,446   

Bell Aliant Inc.

     283,162        7,337,616   

Rogers Communications Inc. Class B

     1,450,851        69,123,760   

TELUS Corp.

     416,310        28,706,985   
   

 

 

  
      148,995,807   

TRANSPORTATION — 5.22%

  

Canadian National Railway Co.

     1,636,311        166,583,638   

Canadian Pacific Railway Ltd.

     656,645        80,128,511   
   

 

 

  
      246,712,149   
   

 

 

  

TOTAL COMMON STOCKS

  

  

(Cost: $5,122,669,768)

  

     4,757,053,356   
 

 

22    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI CANADA INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

SHORT-TERM INVESTMENTS — 1.11%

  

MONEY MARKET FUNDS — 1.11%

  

  

BlackRock Cash Funds: Institutional,
SL Agency Shares

    

0.21%d,e,f

     48,518,330      $ 48,518,330   

BlackRock Cash Funds: Prime,
SL Agency Shares

    

0.18%d,e,f

     3,512,887        3,512,887   

BlackRock Cash Funds: Treasury,
SL Agency Shares

    

0.04%d,e

     612,762        612,762   
   

 

 

  
      52,643,979   
   

 

 

  

TOTAL SHORT-TERM INVESTMENTS
(Cost: $52,643,979)

   

     52,643,979   
   

 

 

  

TOTAL INVESTMENTS
IN SECURITIES — 101.85%
(Cost: $5,175,313,747)

    

     4,809,697,335   

Other Assets, Less Liabilities — (1.85)%

  

     (87,354,117 ) 
   

 

 

  

NET ASSETS — 100.00%

     $ 4,722,343,218   
   

 

 

  

NVS  —  Non-Voting Shares

 

a 

All or a portion of this security represents a security on loan. See Note 5.

b 

Non-income earning security.

c 

Security valued using Level 3 inputs in accordance with management’s fair valuation policy. See Note 1.

d 

Affiliated issuer. See Note 2.

e 

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

f 

All or a portion of this security represents an investment of securities lending collateral. See Note 5.

Financial futures contracts purchased as of February 28, 2013 were as follows:

 

Number of
Contracts		      Issue
(Expiration)		   Exchange   Notional
Value		     Net
Unrealized
Appreciation
(Depreciation)		  
  155       S&P/TSE 60 Index (Mar. 2013)   Montreal     $22,244,735        $758,309   
                              

See notes to financial statements.

 

 

SCHEDULES OF INVESTMENTS

      23   

Table of Contents

Schedule of Investments (Unaudited)

iSHARES® MSCI CHILE CAPPED INVESTABLE MARKET INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

COMMON STOCKS — 89.75%

  

  

AIRLINES — 6.87%

    

LATAM Airlines Group SA

     1,827,406      $ 43,578,833   
   

 

 

  
      43,578,833   

BANKS — 14.45%

  

  

Banco de Chile

     140,678,710        23,353,766   

Banco de Chile Series Ta

     6,860,034        1,051,374   

Banco de Credito e Inversiones

     275,827        21,448,093   

Banco Santander (Chile) SA

     396,917,707        28,804,957   

CorpBanca SA

     1,159,037,830        17,043,161   
   

 

 

  
      91,701,351   

BEVERAGES — 3.57%

  

  

Compania Cervecerias Unidas SA

     920,674        14,947,401   

Vina Concha y Toro SA

     3,703,149        7,721,150   
   

 

 

  
      22,668,551   

BUILDING MATERIALS — 1.24%

  

  

SalfaCorp SA

     3,109,386        7,881,099   
   

 

 

  
      7,881,099   

COMPUTERS — 2.36%

  

  

Sonda SA

     4,188,635        14,955,300   
   

 

 

  
      14,955,300   

ELECTRIC — 17.99%

    

AES Gener SA

     20,356,808        13,990,922   

Colbun SAa

     62,355,579        19,589,182   

E.CL SA

     4,164,860        9,422,330   

Empresa Nacional de Electricidad SA

     21,967,519        37,337,120   

Enersis SA

     88,624,725        33,857,436   
   

 

 

  
      114,196,990   

ENGINEERING & CONSTRUCTION — 1.08%

  

  

Besalco SA

     2,433,270        4,657,805   

Socovesa SA

     4,438,705        2,228,501   
   

 

 

  
      6,886,306   

FOOD — 7.47%

  

  

AquaChile SAa

     3,219,413        2,626,981   

Cencosud SA

     6,578,767        41,109,471   

Empresas Iansa SA

     24,722,939        1,889,302   

Multiexport Foods SA

     5,398,107        1,772,971   
   

 

 

  
      47,398,725   

FOREST PRODUCTS & PAPER — 4.84%

  

  

Empresas CMPC SA

     7,296,511        28,147,982   
Security   Shares     Value  
   

Masisa SA

     23,594,934      $ 2,603,648   
   

 

 

  
      30,751,630   

HEALTH CARE — SERVICES — 0.53%

  

  

Cruz Blanca Salud SA

     2,653,465        3,374,873   
   

 

 

  
      3,374,873   

HOLDING COMPANIES — DIVERSIFIED — 8.88%

  

  

Empresas Copec SA

     3,174,862        48,983,010   

Inversiones La Construccion SA

     245,447        4,669,745   

Norte Grande SA

     242,449,553        2,715,353   
   

 

 

  
      56,368,108   

IRON & STEEL — 3.34%

  

  

CAP SA

     589,440        21,197,660   
   

 

 

  
      21,197,660   

LODGING — 0.29%

    

Enjoy SA

     7,289,161        1,872,176   
   

 

 

  
      1,872,176   

REAL ESTATE — 1.85%

    

Parque Arauco SA

     3,850,769        10,715,077   

PAZ Corp. SA

     1,439,559        1,031,626   
   

 

 

  
      11,746,703   

RETAIL — 6.66%

    

Empresas Hites SA

     1,854,053        2,401,744   

Empresas La Polar SAa

     8,303,974        3,428,143   

S.A.C.I. Falabella SA

     3,124,023        36,459,373   
   

 

 

  
      42,289,260   

TELECOMMUNICATIONS — 3.13%

  

  

Empresa Nacional de Telecomunicaciones SA

     940,707        19,846,621   
   

 

 

  
      19,846,621   

TRANSPORTATION — 1.79%

    

Compania SudAmericana de Vapores SAa

     43,277,379        4,807,581   

Sociedad Matriz SAAM SAa

     53,450,797        6,564,827   
   

 

 

  
      11,372,408   

WATER — 3.41%

    

Aguas Andinas SA Series A

     17,597,967        14,134,175   

Inversiones Aguas Metropolitanas SA

     3,582,200        7,500,395   
   

 

 

  
      21,634,570   
   

 

 

  

TOTAL COMMON STOCKS

    

(Cost: $393,487,646)

       569,721,164   
 

 

24    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI CHILE CAPPED INVESTABLE MARKET INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

PREFERRED STOCKS — 6.83%

  

BEVERAGES — 1.53%

  

  

Embotelladora Andina SA Class B

     1,437,691      $ 9,710,835   
   

 

 

  
      9,710,835   

CHEMICALS — 5.30%

    

Sociedad Quimica y Minera de Chile SA Series B

     606,780        33,672,089   
   

 

 

  
      33,672,089   
   

 

 

  

TOTAL PREFERRED STOCKS

    

(Cost: $25,727,005)

       43,382,924   

RIGHTS — 0.19%

  

ELECTRIC — 0.09%

    

Enersis SAa

     40,391,543        546,466   
   

 

 

  
      546,466   

FOOD — 0.10%

    

Cencosud SAa

     806,136        626,470   
   

 

 

  
      626,470   
   

 

 

  

TOTAL RIGHTS

    

(Cost: $0)

       1,172,936   

SHORT-TERM INVESTMENTS — 3.09%

  

MONEY MARKET FUNDS — 3.09%

  

BlackRock Cash Funds: Treasury,
SL Agency Shares

    

0.04%b,c

     19,603,844        19,603,844   
   

 

 

  
      19,603,844   
   

 

 

  

TOTAL SHORT-TERM INVESTMENTS

  

  

(Cost: $19,603,844)

  

     19,603,844   
   

 

 

  

TOTAL INVESTMENTS
IN SECURITIES — 99.86%

   

  

(Cost: $438,818,495)

  

     633,880,868   

Other Assets, Less Liabilities — 0.14%

  

     893,903   
   

 

 

  

NET ASSETS — 100.00%

  

   $ 634,774,771   
   

 

 

  

 

a 

Non-income earning security.

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

      25   

Table of Contents

Schedule of Investments (Unaudited)

iSHARES® MSCI ISRAEL CAPPED INVESTABLE MARKET INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

COMMON STOCKS — 99.76%

    

AEROSPACE & DEFENSE — 1.82%

    

Elbit Systems Ltd.

     37,666      $ 1,464,550   
   

 

 

  
      1,464,550   

BANKS — 22.68%

    

Bank Hapoalim BMa

     1,542,937        6,842,726   

Bank Leumi le-Israel BMa

     1,821,362        6,493,391   

First International Bank of Israel Ltd.a

     35,409        500,374   

Israel Discount Bank Ltd. Class Aa

     1,257,631        2,197,785   

Mizrahi Tefahot Bank Ltd.a

     199,023        2,089,507   

Union Bank of Israela

     39,738        145,310   
   

 

 

  
      18,269,093   

BIOTECHNOLOGY — 0.18%

    

Clal Biotechnology Industries Ltd.a

     53,428        147,462   
   

 

 

  
      147,462   

CHEMICALS — 11.71%

    

Frutarom

     60,236        838,560   

Israel Chemicals Ltd.

     664,779        8,592,229   
   

 

 

  
      9,430,789   

COMMERCIAL SERVICES — 0.54%

    

Nitsba Holdings (1995) Ltd.a

     46,842        430,864   
   

 

 

  
      430,864   

COMPUTERS — 0.32%

    

MATRIX IT Ltd.

     55,833        258,286   
   

 

 

  
      258,286   

ELECTRONICS — 0.49%

    

Ituran Location and Control Ltd.

     25,974        396,211   
   

 

 

  
      396,211   

ENERGY — ALTERNATE SOURCES — 0.60%

  

  

Ormat Industries Ltd.a

     83,102        486,249   
   

 

 

  
      486,249   

ENGINEERING & CONSTRUCTION — 1.17%

  

  

Electra (Israel) Ltd.

     2,553        260,680   

Shikun & Binui Ltd.

     329,855        684,535   
   

 

 

  
      945,215   

FOOD — 3.11%

    

Osem Investment Ltd.

     54,908        939,147   

Rami Levi Chain Stores Hashikma Marketing 2006 Ltd.

     8,769        337,655   

Shufersal Ltd.

     125,356        404,717   
Security   Shares     Value  
   

Strauss Group Ltd.

     60,310      $ 821,239   
   

 

 

  
      2,502,758   

FOREST PRODUCTS & PAPER — 0.21%

  

  

Hadera Paper Ltd.a

     3,293        170,070   
   

 

 

  
      170,070   

HEALTH CARE — PRODUCTS — 0.53%

  

  

Given Imaging Ltd.a,b

     26,825        425,588   
   

 

 

  
      425,588   

HOLDING COMPANIES — DIVERSIFIED — 6.47%

  

  

Clal Industries Ltd.

     101,003        390,821   

Delek Group Ltd. (The)

     7,030        1,859,839   

Discount Investment Corp. Ltd. Registereda

     38,517        124,976   

Israel Corp. Ltd. (The)

     3,589        2,578,378   

Koor Industries Ltd.a

     19,462        255,895   
   

 

 

  
      5,209,909   

HOME BUILDERS — 0.42%

  

  

Bayside Land Corp. Ltd.b

     1,036        216,029   

Property & Building Corp. Ltd.a

     2,590        125,813   
   

 

 

  
      341,842   

INSURANCE — 3.35%

  

  

Clal Insurance Enterprises Holdings Ltd.

     32,005        510,184   

Harel Insurance Investments & Financial Services Ltd.

     17,242        808,766   

Menorah Mivtachim Holdings Ltd.a

     42,587        414,317   

Migdal Insurance & Financial Holdings Ltd.

     432,641        694,323   

Phoenix Holdings Ltd.a

     93,019        270,759   
   

 

 

  
      2,698,349   

MANUFACTURING — 0.23%

    

Plasson Industries Ltd.

     5,920        188,260   
   

 

 

  
      188,260   

OIL & GAS — 2.91%

    

Jerusalem Oil Exploration Ltd.a

     13,468        289,659   

Naphtha Israel Petroleum Corp. Ltd.a

     54,946        262,614   

Oil Refineries Ltd.a

     1,349,760        702,184   

Paz Oil Co. Ltd.a

     7,252        1,088,264   
   

 

 

  
      2,342,721   

PHARMACEUTICALS — 21.84%

  

  

Teva Pharmaceutical Industries Ltd.

     469,641        17,590,593   
   

 

 

  
      17,590,593   
 

 

26    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI ISRAEL CAPPED INVESTABLE MARKET INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

REAL ESTATE — 5.82%

  

  

Africa Israel Investments Ltd.a

     113,776      $ 283,080   

Africa Israel Properties Ltd.a

     20,425        211,134   

Airport City Ltd.a

     52,947        262,187   

AL-ROV (Israel) Ltd.a

     7,659        214,070   

Alony Hetz Properties & Investments Ltd.

     104,636        653,667   

Alrov Properties and Lodgings Ltd.a

     7,918        155,876   

Amot Investments Ltd.

     91,945        246,144   

Gazit Globe Ltd.

     117,660        1,580,311   

Industrial Buildings Corp. Ltd.b

     85,285        123,802   

Jerusalem Economy Ltd.a

     33,485        209,994   

Melisron Ltd.

     20,018        409,597   

Norstar Holdings Inc.

     12,913        337,416   
   

 

 

  
      4,687,278   

RETAIL — 0.65%

    

Delek Automotive Systems Ltd.

     51,800        519,430   
   

 

 

  
      519,430   

SEMICONDUCTORS — 3.47%

    

Mellanox Technologies Ltd.a

     54,242        2,796,996   
   

 

 

  
      2,796,996   

SOFTWARE — 0.30%

    

Babylon Ltd.

     42,550        241,179   
   

 

 

  
      241,179   

TELECOMMUNICATIONS — 10.75%

  

  

Bezeq The Israel Telecommunication Corp. Ltd.

     2,965,809        3,801,347   

Cellcom Israel Ltd.

     85,692        626,466   

Ceragon Networks Ltd.a

     47,101        219,160   

NICE Systems Ltd.a

     91,279        3,273,877   

Partner Communications Co. Ltd.b

     133,977        741,721   
   

 

 

  
      8,662,571   

TEXTILES — 0.19%

    

Avgol Industries 1953 Ltd.

     164,391        156,390   
   

 

 

  
      156,390   
   

 

 

  

TOTAL COMMON STOCKS

  

  

(Cost: $100,418,890)

  

     80,362,653   
Security   Shares     Value  
   

SHORT-TERM INVESTMENTS — 0.97%

  

  

MONEY MARKET FUNDS — 0.97%

    

BlackRock Cash Funds: Institutional,
SL Agency Shares

    

0.21%c,d,e

     688,273      $ 688,273   

BlackRock Cash Funds: Prime,
SL Agency Shares

    

0.18%c,d,e

     49,833        49,833   

BlackRock Cash Funds: Treasury,
SL Agency Shares

    

0.04%c,d

     39,239        39,239   
   

 

 

  
      777,345   
   

 

 

  

TOTAL SHORT-TERM INVESTMENTS

  

  

(Cost: $777,345)

  

     777,345   
   

 

 

  

TOTAL INVESTMENTS
IN SECURITIES — 100.73%

   

  

(Cost: $101,196,235)

  

     81,139,998   

Other Assets, Less Liabilities — (0.73)%

  

     (586,079 ) 
   

 

 

  

NET ASSETS — 100.00%

  

   $ 80,553,919   
   

 

 

  

 

a 

Non-income earning security.

b 

All or a portion of this security represents a security on loan. See Note 5.

c 

Affiliated issuer. See Note 2.

d 

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

e 

All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

 

 

SCHEDULES OF INVESTMENTS

      27   

Table of Contents

Schedule of Investments (Unaudited)

iSHARES® MSCI MEXICO CAPPED INVESTABLE MARKET INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

COMMON STOCKS — 99.78%

  

AIRLINES — 0.14%

    

Grupo Aeromexico SAB de CVa,b

     2,485,508      $ 3,427,361   
   

 

 

  
      3,427,361   

BANKS — 11.31%

  

Compartamos SAB de CV

     14,400,069        22,899,558   

Grupo Financiero Banorte SAB de CV Series O

     16,452,933        122,116,315   

Grupo Financiero Inbursa SAB de CV Series O

     24,334,029        68,595,645   

Grupo Financiero Santander Mexico SAB de CV Series B

     18,215,156        54,397,642   
   

 

 

  
      268,009,160   

BEVERAGES — 17.69%

  

Arca Continental SAB de CV

     4,486,871        33,779,831   

Coca-Cola FEMSA SAB de CV
Series L

     4,816,903        81,380,270   

Fomento Economico Mexicano SAB de CV BD Units

     20,888,118        233,615,012   

Grupo Modelo SAB de CV Series Cb

     7,853,756        70,295,632   
   

 

 

  
      419,070,745   

BUILDING MATERIALS — 5.59%

  

Cemex SAB de CV CPOa

     103,556,874        111,191,569   

Corporacion Geo SAB de CV
Series Ba

     9,504,548        7,899,413   

Desarrolladora Homex SAB de CVa,b

     4,256,424        8,457,586   

Urbi Desarrollos Urbanos
SAB de CVa,b

     14,281,089        4,817,008   
   

 

 

  
      132,365,576   

CHEMICALS — 3.47%

  

Alpek SAB de CV

     7,323,926        16,690,684   

Mexichem SAB de CV

     13,084,081        65,523,057   
   

 

 

  
      82,213,741   

DIVERSIFIED FINANCIAL SERVICES — 0.50%

  

Bolsa Mexicana de Valores
SAB de CVb

     4,886,524        11,889,390   
   

 

 

  
      11,889,390   

ENGINEERING & CONSTRUCTION — 3.85%

  

Empresas ICA SAB de CVa,b

     7,669,150        22,134,869   

Grupo Aeroportuario del Centro Norte SAB de CVb

     2,363,394        8,069,752   
Security   Shares     Value  
   

Grupo Aeroportuario del Pacifico SAB de CV Series B

     4,239,249      $ 26,192,676   

Grupo Aeroportuario del Sureste SAB de CV Series B

     1,205,858        15,891,002   

Grupo Aeroportuario del Sureste SAB de CV Series B SP ADR

     142,875        18,840,926   
   

 

 

  
      91,129,225   

FOOD — 3.09%

  

Gruma SAB de CV Series Ba,b

     3,185,431        11,215,613   

Grupo Bimbo SAB de CV Series A

     20,300,087        55,079,572   

Grupo Herdez SAB de CV

     2,253,883        6,817,414   
   

 

 

  
      73,112,599   

HOLDING COMPANIES — DIVERSIFIED — 5.01%

  

Alfa SAB de CV Series A

     34,625,538        84,220,217   

Grupo Carso SAB de CV Series A1

     7,099,559        34,442,275   
   

 

 

  
      118,662,492   

HOME BUILDERS — 0.22%

  

Consorcio ARA SAB de CVa,b

     13,544,566        5,246,976   
   

 

 

  
      5,246,976   

HOUSEHOLD PRODUCTS & WARES — 2.63%

  

Kimberly-Clark de Mexico SAB de CV Series A

     19,663,554        62,247,134   
   

 

 

  
      62,247,134   

IRON & STEEL — 0.30%

  

Compania Minera Autlan SAB de CV Series Bb

     841,300        738,724   

Grupo Simec SAB de CV Series Ba

     1,524,774        6,502,212   
   

 

 

  
      7,240,936   

MACHINERY — 0.82%

  

Industrias CH SAB de CV Series Ba,b

     2,371,618        19,350,905   
   

 

 

  
      19,350,905   

MEDIA — 5.30%

  

Grupo Televisa SAB de CV CPO

     21,209,497        113,849,201   

TV Azteca SAB de CV CPO

     16,868,841        11,749,356   
   

 

 

  
      125,598,557   

MINING — 11.04%

  

Grupo Mexico SAB de CV Series B

     38,823,629        152,463,400   

Industrias Penoles SAB de CV

     1,679,906        77,515,515   

Minera Frisco SAB de CV
Series A1a,b

     7,488,999        31,625,291   
   

 

 

  
      261,604,206   
 

 

28    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI MEXICO CAPPED INVESTABLE MARKET INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

PHARMACEUTICALS — 1.06%

  

Genomma Lab Internacional SAB de CV Series Ba,b

     10,520,535      $ 25,243,455   
   

 

 

  
      25,243,455   

REAL ESTATE — 0.28%

  

Corporacion Inmobiliaria Vesta SAB de CV

     3,293,636        6,621,838   
   

 

 

  
      6,621,838   

RETAIL — 9.71%

  

Alsea SAB de CVa

     5,424,721        13,572,469   

Controladora Comercial Mexicana SAB de CV BC Units

     4,570,842        15,800,194   

El Puerto de Liverpool SA de CV Series C1

     2,435,488        27,448,427   

Grupo Famsa SAB de CV Series Aa

     3,081,177        4,499,529   

Wal-Mart de Mexico SAB de CV Series V

     53,723,723        168,722,918   
   

 

 

  
      230,043,537   

TELECOMMUNICATIONS — 17.77%

  

America Movil SAB de CV Series L

     397,907,234        416,343,758   

Axtel SAB de CV CPOa,b

     20,680,215        4,758,183   
   

 

 

  
      421,101,941   
   

 

 

  

TOTAL COMMON STOCKS

    

(Cost: $2,231,266,618)

       2,364,179,774   

SHORT-TERM INVESTMENTS — 1.73%

  

MONEY MARKET FUNDS — 1.73%

    

BlackRock Cash Funds: Institutional,
SL Agency Shares

    

0.21%c,d,e

     37,947,733        37,947,733   

BlackRock Cash Funds: Prime,
SL Agency Shares

    

0.18%c,d,e

     2,747,541        2,747,541   

BlackRock Cash Funds: Treasury,
SL Agency Shares

    

0.04%c,d

     323,390        323,390   
   

 

 

  
      41,018,664   
   

 

 

  

TOTAL SHORT-TERM INVESTMENTS

  

(Cost: $41,018,664)

       41,018,664   
   

 

 

  
          Value  
   

TOTAL INVESTMENTS
IN SECURITIES — 101.51%

   

(Cost: $2,272,285,282)

     $ 2,405,198,438   

Other Assets, Less Liabilities — (1.51)%

     (35,772,708 ) 
   

 

 

  

NET ASSETS — 100.00%

     $ 2,369,425,730   
   

 

 

  

CPO  —  Certificates of Participation (Ordinary)

SP ADR  —  Sponsored American Depositary Receipts

 

a 

Non-income earning security.

b 

All or a portion of this security represents a security on loan. See Note 5.

c 

Affiliated issuer. See Note 2.

d 

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

e 

All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

 

 

SCHEDULES OF INVESTMENTS

      29   

Table of Contents

Schedule of Investments (Unaudited)

iSHARES® MSCI SOUTH AFRICA INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

COMMON STOCKS — 99.93%

  

BANKS — 12.98%

  

Absa Group Ltd.

     526,242      $ 9,530,501   

FirstRand Ltd.

     5,679,566        19,527,524   

Nedbank Group Ltd.

     371,867        7,985,896   

Standard Bank Group Ltd.

     2,205,314        28,630,961   
   

 

 

  
      65,674,882   

BUILDING MATERIALS — 0.69%

  

PPC Ltd.

     911,980        3,507,576   
   

 

 

  
      3,507,576   

CHEMICALS — 8.50%

  

Sasol Ltd.

     1,005,765        43,028,633   
   

 

 

  
      43,028,633   

COAL — 0.87%

  

Exxaro Resources Ltd.

     229,200        4,389,762   
   

 

 

  
      4,389,762   

DIVERSIFIED FINANCIAL SERVICES — 2.62%

  

African Bank Investments Ltd.a

     1,325,066        4,253,112   

Investec Ltd.

     434,821        3,101,953   

RMB Holdings Ltd.

     1,293,051        5,899,842   
   

 

 

  
      13,254,907   

ENGINEERING & CONSTRUCTION — 0.53%

  

Aveng Ltd.

     736,871        2,693,656   
   

 

 

  
      2,693,656   

FOOD — 5.72%

  

Shoprite Holdings Ltd.

     783,851        15,017,106   

SPAR Group Ltd. (The)

     315,494        3,839,641   

Tiger Brands Ltd.

     297,694        10,069,447   
   

 

 

  
      28,926,194   

FOREST PRODUCTS & PAPER — 0.62%

  

Sappi Ltd.b

     990,436        3,145,923   
   

 

 

  
      3,145,923   

HEALTH CARE — PRODUCTS — 1.95%

  

Aspen Pharmacare Holdings Ltd.b

     542,403        9,864,291   
   

 

 

  
      9,864,291   

HEALTH CARE — SERVICES — 1.98%

  

Life Healthcare Group Holdings Ltd.

     1,718,287        6,463,181   

Netcare Ltd.

     1,603,754        3,574,741   
   

 

 

  
      10,037,922   
Security   Shares     Value  
   

HOLDING COMPANIES — DIVERSIFIED — 8.74%

  

Barloworld Ltd.

     401,614      $ 4,131,306   

Bidvest Group Ltd.

     540,287        14,338,286   

Imperial Holdings Ltd.

     330,846        7,632,242   

Remgro Ltd.

     793,124        15,026,812   

RMI Holdings Ltd.

     1,223,508        3,100,803   
   

 

 

  
      44,229,449   

HOME FURNISHINGS — 1.25%

  

Steinhoff International Holdings Ltd.b

     2,183,066        6,342,855   
   

 

 

  
      6,342,855   

INSURANCE — 5.62%

  

Discovery Holdings Ltd.

     541,818        4,534,926   

Liberty Holdings Ltd.

     210,067        2,727,474   

MMI Holdings Ltd.

     1,868,963        4,655,379   

Sanlam Ltd.

     3,269,593        16,499,735   
   

 

 

  
      28,417,514   

IRON & STEEL — 2.06%

  

ArcelorMittal South Africa Ltd.b

     327,721        1,057,376   

Kumba Iron Ore Ltd.

     147,486        9,341,750   
   

 

 

  
      10,399,126   

MEDIA — 9.21%

  

Naspers Ltd. Class N

     717,715        46,619,040   
   

 

 

  
      46,619,040   

MINING — 12.39%

  

African Rainbow Minerals Ltd.

     197,128        4,199,738   

Anglo American Platinum Ltd.

     123,508        5,850,067   

AngloGold Ashanti Ltd.

     701,988        17,243,993   

Assore Ltd.

     63,890        2,403,165   

Gold Fields Ltd.

     1,336,638        11,385,563   

Harmony Gold Mining Co. Ltd.

     717,515        4,536,497   

Impala Platinum Holdings Ltd.

     983,549        15,236,585   

Northam Platinum Ltd.

     421,388        1,840,024   
   

 

 

  
      62,695,632   

OFFICE & BUSINESS EQUIPMENT — 0.58%

  

Reunert Ltd.

     330,982        2,932,570   
   

 

 

  
      2,932,570   

REAL ESTATE — 2.95%

  

Growthpoint Properties Ltd.

     3,075,654        9,375,008   

Redefine Properties Ltd.

     5,069,476        5,553,841   
   

 

 

  
      14,928,849   
 

 

30    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI SOUTH AFRICA INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

RETAIL — 6.87%

  

Foschini Group Ltd. (The)

     374,332      $ 4,466,018   

Massmart Holdings Ltd.

     198,347        4,122,696   

Mr. Price Group Ltd.

     436,383        5,632,364   

Pick n Pay Stores Ltd.a

     440,747        2,199,142   

Truworths International Ltd.

     803,648        8,334,108   

Woolworths Holdings Ltd.

     1,385,799        9,983,400   
   

 

 

  
      34,737,728   

TELECOMMUNICATIONS — 13.80%

  

MTN Group Ltd.

     3,104,849        60,759,909   

Vodacom Group Ltd.

     681,406        9,048,506   
   

 

 

  
      69,808,415   
   

 

 

  

TOTAL COMMON STOCKS

  

  

(Cost: $538,714,918)

       505,634,924   

SHORT-TERM INVESTMENTS — 1.03%

  

MONEY MARKET FUNDS — 1.03%

    

BlackRock Cash Funds: Institutional,
SL Agency Shares

    

0.21%c,d,e

     4,653,100        4,653,100   

BlackRock Cash Funds: Prime,
SL Agency Shares

    

0.18%c,d,e

     336,900        336,900   

BlackRock Cash Funds: Treasury,
SL Agency Shares

    

0.04%c,d

     225,141        225,141   
   

 

 

  
      5,215,141   
   

 

 

  

TOTAL SHORT-TERM INVESTMENTS

    

(Cost: $5,215,141)

       5,215,141   
   

 

 

  

TOTAL INVESTMENTS
IN SECURITIES — 100.96%

   

(Cost: $543,930,059)

       510,850,065   

Other Assets, Less Liabilities — (0.96)%

  

     (4,839,523 ) 
   

 

 

  

NET ASSETS — 100.00%

     $ 506,010,542   
   

 

 

  

 

a 

All or a portion of this security represents a security on loan. See Note 5.

b 

Non-income earning security.

c 

Affiliated issuer. See Note 2.

d 

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

e 

All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

 

 

SCHEDULES OF INVESTMENTS

      31   

Table of Contents

Schedule of Investments (Unaudited)

iSHARES® MSCI TURKEY INVESTABLE MARKET INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

COMMON STOCKS — 99.97%

  

AEROSPACE & DEFENSE — 0.63%

  

  

Aselsan Elektronik Sanayi ve TASa

     899,127      $ 5,098,877   
   

 

 

  
      5,098,877   

AIRLINES — 2.21%

  

  

Turk Hava Yollari AOb

     4,288,016        17,784,783   
   

 

 

  
      17,784,783   

AUTO MANUFACTURERS — 2.01%

  

  

Ford Otomotiv Sanayi AS

     627,767        7,399,250   

Otokar Otomotiv Ve Savunma Sanayi AS

     75,390        1,928,079   

Tofas Turk Otomobil Fabrikasi AS

     1,114,428        6,908,444   
   

 

 

  
      16,235,773   

AUTO PARTS & EQUIPMENT — 0.15%

  

  

Goodyear Lastikleri Turk AS

     31,988        1,213,789   
   

 

 

  
      1,213,789   

BANKS — 41.69%

  

  

Akbank TAS

     16,054,861        78,013,781   

Albaraka Turk Katilim Bankasi ASb

     2,830,113        2,910,910   

Asya Katilim Bankasi ASb

     4,434,922        5,449,186   

Sekerbank TASa,b

     3,145,929        3,305,705   

Turkiye Garanti Bankasi AS

     20,601,839        98,504,887   

Turkiye Halk Bankasi AS

     5,575,585        55,177,724   

Turkiye Is Bankasi AS Class C

     14,051,203        50,153,572   

Turkiye Vakiflar Bankasi TAO Class D

     6,697,845        20,555,475   

Yapi ve Kredi Bankasi ASb

     7,761,791        21,921,940   
   

 

 

  
      335,993,180   

BEVERAGES — 5.11%

  

  

Anadolu Efes Biracilik ve Malt Sanayii AS

     1,847,822        27,738,134   

Coca-Cola Icecek AS

     567,571        13,411,040   
   

 

 

  
      41,149,174   

BUILDING MATERIALS — 1.70%

  

  

Adana Cimento Sanayii TAS Class A

     513,161        1,158,332   

Afyon Cimento Sanayi TASb

     13,194        511,651   

Akcansa Cimento Sanayi ve TASa

     429,812        2,509,119   

Baticim Bati Anodolu Cimento Sanayii AS

     369,863        1,476,450   

Bursa Cimento Fabrikasi AS

     517,655        1,444,766   

Cimsa Cimento Sanayi ve TASa

     422,874        2,456,861   
Security   Shares     Value  
   

Goltas Goller Bolgesi Cimento Sanayi ve TASa

     32,203      $ 1,132,427   

Konya Cimento Sanayii AS

     8,706        1,752,187   

Mardin Cimento Sanayii ve TAS

     438,332        1,281,865   
   

 

 

  
      13,723,658   

CHEMICALS — 0.68%

  

  

Aksa Akrilik Kimya Sanayii AS

     747,566        2,119,693   

Bagfas Bandirma Gubre Fabrikalari ASa

     47,926        1,452,182   

Gubre Fabrikalari TASa,b

     187,184        1,883,655   
   

 

 

  
      5,455,530   

COMMERCIAL SERVICES — 0.34%

  

  

Ihlas Holding ASa,b

     5,982,614        2,760,720   
   

 

 

  
      2,760,720   

DISTRIBUTION & WHOLESALE — 0.30%

  

  

Aygaz AS

     1        4   

Bizim Toptan Satis Magazalari ASa

     160,949        2,433,944   
   

 

 

  
      2,433,948   

DIVERSIFIED FINANCIAL SERVICES — 0.97%

  

  

Is Finansal Fabrikasi ASb

     1,442,095        745,642   

Is Yatirim Menkul Degerler AS

     790,774        734,213   

Turkiye Sinai Kalkinma Bankasi AS

     4,925,336        6,352,975   
   

 

 

  
      7,832,830   

ELECTRIC — 0.60%

  

  

Akenerji Elektrik Uretim ASa,b

     1,915,553        1,789,191   

Alarko Holding AS

     601,187        1,804,915   

Zorlu Enerji Elektrik Uretim ASa,b

     1,565,908        1,218,843   
   

 

 

  
      4,812,949   

ENGINEERING & CONSTRUCTION — 2.33%

  

  

Enka Insaat ve Sanayi AS

     3,251,317        9,905,883   

TAV Havalimanlari Holding AS

     1,460,863        8,893,587   
   

 

 

  
      18,799,470   

ENTERTAINMENT — 0.20%

  

  

Fenerbahce Sportif Hizmetler Sanayi ve Ticaret ASa

     33,447        728,948   

Galatasaray Sportif Sinai ve Ticari Yatirimlar ASa,b

     38,563        900,479   
   

 

 

  
      1,629,427   

FOOD — 6.43%

  

  

BIM Birlesik Magazalar AS

     947,297        44,898,713   

Pinar Sut Mamulleri Sanayii AS

     159,829        1,359,566   

Tat Konserve Sanayii ASa,b

     607,778        773,809   
 

 

32    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI TURKEY INVESTABLE MARKET INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Ulker Biskuvi Sanayi ASa

     764,728      $ 4,825,654   
   

 

 

  
      51,857,742   

FOREST PRODUCTS & PAPER — 0.48%

  

  

Ipek Dogal Enerji Kaynaklari Ve Uretim ASa,b

     930,308        2,668,884   

Kartonsan Karton Sanayi ve TAS

     7,606        1,226,331   
   

 

 

  
      3,895,215   

HOLDING COMPANIES — DIVERSIFIED — 9.91%

  

  

Akfen Holding ASa,b

     391,912        2,331,448   

Dogan Sirketler Grubu Holding ASb

     6,581,287        3,951,736   

Eczacibasi Yatirim Holding Ortakligi AS

     281,933        1,069,014   

Haci Omer Sabanci Holding AS

     7,005,993        38,172,369   

KOC Holding AS

     5,658,099        29,758,774   

Yazicilar Holding ASa

     429,435        4,596,016   
   

 

 

  
      79,879,357   

HOME FURNISHINGS — 1.87%

  

  

Arcelik AS

     2,113,112        13,393,087   

Vestel Beyaz Esya Sanayi ve TASb

     509,259        755,968   

Vestel Elektronik Sanayi ve TASb

     900,389        931,101   
   

 

 

  
      15,080,156   

HOUSEWARES — 0.98%

  

  

Anadolu Cam Sanayii ASa,b

     892,481        1,359,574   

Turkiye Sise ve Cam Fabrikalari AS

     4,020,660        6,572,007   
   

 

 

  
      7,931,581   

INSURANCE — 0.97%

  

  

Aksigorta ASa

     1,108,813        1,387,056   

Anadolu Anonim Turk Sigorta Sirketib

     1,816,840        1,202,035   

Anadolu Hayat Emeklilik ASa

     544,652        1,683,632   

Yapi Kredi Sigorta AS

     320,837        3,549,694   
   

 

 

  
      7,822,417   

IRON & STEEL — 2.12%

  

  

Eregli Demir ve Celik Fabrikalari TAS

     8,274,982        10,673,538   

Izmir Demir Celik Sanayi ASa,b

     666,726        1,234,369   

Kardemir Karabuk Demir Celik Sanayi ve TAS Class A

     1,076,598        927,766   

Kardemir Karabuk Demir Celik Sanayi ve TAS Class B

     545,696        722,073   

Kardemir Karabuk Demir Celik Sanayi ve TAS Class Da

     4,053,900        3,493,479   
   

 

 

  
      17,051,225   
Security   Shares     Value  
   

LODGING — 0.19%

  

  

Net Holding ASa,b

     1,147,055      $ 1,524,177   
   

 

 

  
      1,524,177   

MANUFACTURING — 0.36%

  

  

Trakya Cam Sanayii ASa,b

     1,869,533        2,858,375   
   

 

 

  
      2,858,375   

MEDIA — 0.34%

  

  

Dogan Yayin Holding ASa,b

     4,500,633        2,101,872   

Hurriyet Gazetecilik ve Matbaacilik ASa,b

     1,252,972        647,855   
   

 

 

  
      2,749,727   

METAL FABRICATE & HARDWARE — 0.19%

  

  

Borusan Mannesmann Boru Sanayi ve TAS

     76,172        1,541,523   
   

 

 

  
      1,541,523   

MINING — 1.72%

  

  

Koza Altin Isletmeleri AS

     339,242        8,034,753   

Koza Anadolu Metal Madencilik Isletmeleri ASa,b

     1,559,837        4,171,360   

Park Elektrik Uretim Madencilik Sanayi ve TASa

     467,572        1,622,133   
   

 

 

  
      13,828,246   

OIL & GAS — 3.88%

  

  

Turkiye Petrol Rafinerileri AS

     1,116,964        31,298,466   
   

 

 

  
      31,298,466   

PHARMACEUTICALS — 0.43%

  

  

EIS Eczacibasi Ilac Sanayi ve TASa

     1,467,509        1,884,717   

Selcuk Ecza Deposu Ticaret ve Sanayi AS

     1,393,209        1,611,139   
   

 

 

  
      3,495,856   

REAL ESTATE — 1.13%

  

  

Emlak Konut Gayrimenkul Yatirim Ortakligi AS

     5,588,612        9,072,775   
   

 

 

  
      9,072,775   

REAL ESTATE INVESTMENT TRUSTS — 0.98%

  

  

Akmerkez Gayrimenkul Yatirim Ortakligi AS

     184,045        2,235,779   

Is Gayrimenkul Yatirim Ortakligi AS

     2,424,601        1,995,057   

Saf Gayrimenkul Yatirim Ortakligi ASa

     2,388,387        1,301,320   

Sinpas Gayrimenkul Yatirim Ortakligi ASa

     1,358,622        1,049,945   
 

 

SCHEDULES OF INVESTMENTS

      33   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI TURKEY INVESTABLE MARKET INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Vakif Gayrimenkul Yatirim Ortakligi ASb

     470,730      $ 1,295,479   
   

 

 

  
      7,877,580   

RETAIL — 0.71%

  

  

Boyner Buyuk Magazacilik ASa,b

     329,035        969,552   

Dogus Otomotiv Servis ve TAS

     692,002        3,516,470   

Turcas Petrolculuk ASa

     604,352        1,223,052   
   

 

 

  
      5,709,074   

TELECOMMUNICATIONS — 8.20%

  

  

Nortel Networks Netas Telekomunikasyon ASa

     203,313        1,175,579   

Turk Telekomunikasyon AS

     4,683,123        19,319,363   

Turkcell Iletisim Hizmetleri ASb

     6,865,506        45,613,542   
   

 

 

  
      66,108,484   

TEXTILES — 0.08%

  

  

Polyester Sanayi ASa,b

     964,537        627,420   
   

 

 

  
      627,420   

TRANSPORTATION — 0.08%

  

  

Celebi Hava Servisi ASa,b

     54,728        605,503   
   

 

 

  
      605,503   
   

 

 

  

TOTAL COMMON STOCKS

  

  

(Cost: $761,404,079)

  

     805,739,007   

SHORT-TERM INVESTMENTS — 2.92%

  

MONEY MARKET FUNDS — 2.92%

    

BlackRock Cash Funds: Institutional,
SL Agency Shares

    

0.21%c,d,e

     21,830,969        21,830,969   

BlackRock Cash Funds: Prime,
SL Agency Shares

   

0.18%c,d,e

     1,580,634        1,580,634   

BlackRock Cash Funds: Treasury,
SL Agency Shares

    

0.04%c,d

     95,095        95,095   
   

 

 

  
      23,506,698   
   

 

 

  

TOTAL SHORT-TERM INVESTMENTS

  

  

(Cost: $23,506,698)

  

     23,506,698   
   

 

 

  
          Value  
   

TOTAL INVESTMENTS
IN SECURITIES — 102.89%

  

(Cost: $784,910,777)

   $ 829,245,705   

Other Assets, Less Liabilities — (2.89)%

     (23,308,249 ) 
   

 

 

  

NET ASSETS — 100.00%

   $ 805,937,456   
   

 

 

  

 

a 

All or a portion of this security represents a security on loan. See Note 5.

b 

Non-income earning security.

c 

Affiliated issuer. See Note 2.

d 

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

e 

All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

 

 

34    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited)

iSHARES® MSCI USA INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

COMMON STOCKS — 99.70%

  

  

ADVERTISING — 0.14%

  

  

Interpublic Group of Companies Inc. (The)

     4,634      $ 59,223   

Omnicom Group Inc.

     2,838        163,270   
   

 

 

  
      222,493   

AEROSPACE & DEFENSE — 1.64%

  

  

Boeing Co. (The)

     7,696        591,822   

General Dynamics Corp.

     3,224        219,135   

L-3 Communications Holdings Inc.

     1,010        77,033   

Lockheed Martin Corp.

     2,955        260,040   

Northrop Grumman Corp.

     2,505        164,528   

Raytheon Co.

     3,544        193,396   

Rockwell Collins Inc.

     1,431        86,017   

TransDigm Group Inc.

     528        75,156   

United Technologies Corp.

     9,354        847,005   
   

 

 

  
      2,514,132   

AGRICULTURE — 1.98%

  

  

Altria Group Inc.

     21,755        729,880   

Archer-Daniels-Midland Co.

     7,075        225,410   

Bunge Ltd.

     1,570        116,353   

Lorillard Inc.

     4,172        160,789   

Philip Morris International Inc.

     17,947        1,646,637   

Reynolds American Inc.

     3,603        157,379   
   

 

 

  
      3,036,448   

AIRLINES — 0.05%

  

  

Delta Air Lines Inc.a

     2,284        32,593   

Southwest Airlines Co.

     1,982        23,189   

United Continental Holdings Inc.a

     893        23,852   
   

 

 

  
      79,634   

APPAREL — 0.57%

  

  

Coach Inc.

     3,048        147,310   

Nike Inc. Class B

     7,749        422,011   

Ralph Lauren Corp.

     652        113,102   

Under Armour Inc. Class Aa,b

     849        41,839   

VF Corp.

     947        152,713   
   

 

 

  
      876,975   

AUTO MANUFACTURERS — 0.57%

  

  

Ford Motor Co.

     38,188        481,551   

General Motors Co.a

     8,412        228,386   

PACCAR Inc.

     3,603        170,890   
   

 

 

  
      880,827   
Security   Shares     Value  
   

AUTO PARTS & EQUIPMENT — 0.41%

  

  

Autoliv Inc.b

     1,025      $ 66,809   

BorgWarner Inc.a

     1,257        93,533   

Delphi Automotive PLCa

     3,241        135,636   

Goodyear Tire & Rubber Co. (The)a

     2,632        34,163   

Johnson Controls Inc.

     7,346        231,179   

TRW Automotive Holdings Corp.a

     1,217        71,426   
   

 

 

  
      632,746   

BANKS — 7.01%

    

Bank of America Corp.

     115,787        1,300,288   

Bank of New York Mellon Corp. (The)

     12,554        340,716   

BB&T Corp.

     7,516        228,186   

Capital One Financial Corp.

     6,249        318,886   

CIT Group Inc.a

     2,050        85,813   

Citigroup Inc.

     31,504        1,322,223   

Comerica Inc.

     2,045        70,307   

Fifth Third Bancorp

     9,641        152,713   

First Republic Bank

     985        35,903   

Goldman Sachs Group Inc. (The)

     4,796        718,249   

J.P. Morgan Chase & Co.

     40,838        1,997,795   

KeyCorp

     10,030        94,182   

M&T Bank Corp.

     1,238        126,387   

Morgan Stanley

     15,907        358,703   

Northern Trust Corp.

     2,319        123,301   

PNC Financial Services Group Inc. (The)c

     5,682        354,500   

Regions Financial Corp.

     15,180        116,127   

State Street Corp.

     4,993        282,554   

SunTrust Banks Inc.

     5,789        159,719   

U.S. Bancorp

     20,201        686,430   

Wells Fargo & Co.

     53,726        1,884,708   
   

 

 

  
      10,757,690   

BEVERAGES — 2.36%

    

Beam Inc.

     1,538        93,864   

Brown-Forman Corp. Class B NVS

     1,315        86,290   

Coca-Cola Co. (The)

     43,365        1,679,093   

Coca-Cola Enterprises Inc.

     3,084        110,346   

Constellation Brands Inc. Class Aa

     1,707        75,518   

Crimson Wine Group Ltd.a

     —        2   

Dr Pepper Snapple Group Inc.

     2,236        97,534   

Green Mountain Coffee Roasters Inc.a,b

     1,356        64,763   

Molson Coors Brewing Co. Class B NVS

     1,605        70,957   
 

 

SCHEDULES OF INVESTMENTS

      35   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI USA INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Monster Beverage Corp.a

     1,565      $ 78,923   

PepsiCo Inc.

     16,618        1,259,146   
   

 

 

  
      3,616,436   

BIOTECHNOLOGY — 1.90%

    

Alexion Pharmaceuticals Inc.a

     2,087        181,027   

Amgen Inc.

     8,244        753,584   

Biogen Idec Inc.a

     2,415        401,711   

Celgene Corp.a

     4,544        468,850   

Gilead Sciences Inc.a

     16,279        695,276   

Illumina Inc.a

     1,325        66,422   

Life Technologies Corp.a

     1,848        107,424   

Regeneron Pharmaceuticals Inc.a

     812        135,604   

Vertex Pharmaceuticals Inc.a,b

     2,329        109,044   
   

 

 

  
      2,918,942   

BUILDING MATERIALS — 0.08%

  

  

Martin Marietta Materials Inc.

     493        47,885   

Masco Corp.

     3,866        74,459   
   

 

 

  
      122,344   

CHEMICALS — 2.43%

  

Air Products and Chemicals Inc.

     2,287        197,459   

Airgas Inc.

     713        71,500   

Albemarle Corp.

     959        62,412   

Celanese Corp. Series A

     1,714        80,301   

CF Industries Holdings Inc.

     675        135,560   

Dow Chemical Co. (The)

     12,883        408,649   

E.I. du Pont de Nemours and Co.

     10,017        479,814   

Eastman Chemical Co.

     1,648        114,915   

Ecolab Inc.

     3,147        240,903   

FMC Corp.

     1,476        88,944   

International Flavors & Fragrances Inc.

     876        63,930   

LyondellBasell Industries NV Class A

     3,399        199,249   

Monsanto Co.

     5,743        580,215   

Mosaic Co. (The)

     3,189        186,684   

PPG Industries Inc.

     1,533        206,434   

Praxair Inc.

     3,192        360,856   

Sherwin-Williams Co. (The)

     942        152,218   

Sigma-Aldrich Corp.

     1,293        99,639   
   

 

 

  
      3,729,682   

COAL — 0.09%

    

CONSOL Energy Inc.

     2,447        78,671   

Peabody Energy Corp.

     2,883        62,157   
   

 

 

  
      140,828   
Security   Shares     Value  
   

COMMERCIAL SERVICES — 1.35%

  

  

ADT Corp. (The)

     2,497      $ 119,581   

Alliance Data Systems Corp.a

     536        85,058   

Automatic Data Processing Inc.

     5,215        319,993   

Equifax Inc.

     1,285        70,829   

H&R Block Inc.

     2,912        72,392   

Hertz Global Holdings Inc.a

     3,393        67,690   

Iron Mountain Inc.

     1,527        52,682   

Manpower Inc.

     843        46,028   

MasterCard Inc. Class A

     1,153        597,047   

Moody’s Corp.

     2,155        103,569   

Paychex Inc.

     3,514        116,313   

Quanta Services Inc.a

     2,372        67,365   

Robert Half International Inc.

     1,436        51,050   

SAIC Inc.

     2,938        34,727   

SEI Investments Co.

     1,486        42,009   

Total System Services Inc.

     1,706        40,535   

Verisk Analytics Inc. Class Aa

     1,523        89,126   

Western Union Co.

     6,409        89,918   
   

 

 

  
      2,065,912   

COMPUTERS — 6.19%

  

  

Accenture PLC Class A

     6,860        510,110   

Apple Inc.

     10,106        4,460,788   

Cognizant Technology Solutions Corp. Class Aa

     3,225        247,583   

Computer Sciences Corp.

     1,669        80,162   

Dell Inc.

     15,839        220,954   

EMC Corp.a

     22,632        520,762   

Hewlett-Packard Co.

     21,122        425,397   

IHS Inc. Class Aa,b

     602        63,963   

International Business Machines Corp.

     11,532        2,315,972   

NetApp Inc.a

     3,849        130,212   

SanDisk Corp.a

     2,598        130,913   

Seagate Technology PLC

     3,650        117,384   

Synopsys Inc.a

     1,602        56,118   

Teradata Corp.a

     1,817        105,495   

Western Digital Corp.

     2,355        111,062   
   

 

 

  
      9,496,875   

COSMETICS & PERSONAL CARE — 2.00%

  

  

Avon Products Inc.

     4,643        90,771   

Colgate-Palmolive Co.

     5,076        580,847   
 

 

36    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI USA INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Estee Lauder Companies Inc. (The) Class A

     2,551      $ 163,519   

Procter & Gamble Co. (The)

     29,373        2,237,635   
   

 

 

  
      3,072,772   

DISTRIBUTION & WHOLESALE — 0.38%

  

  

Arrow Electronics Inc.a

     1,138        45,691   

Fastenal Co.

     3,024        156,129   

Fossil Inc.a

     548        56,318   

Genuine Parts Co.

     1,667        118,407   

LKQ Corp.a

     3,193        67,660   

W.W. Grainger Inc.

     635        143,802   
   

 

 

  
      588,007   

DIVERSIFIED FINANCIAL SERVICES — 2.48%

  

  

Affiliated Managers Group Inc.a,b

     556        81,304   

American Express Co.

     10,820        672,463   

Ameriprise Financial Inc.

     2,211        151,741   

BlackRock Inc.c

     1,457        349,316   

Charles Schwab Corp. (The)

     11,643        189,082   

CME Group Inc.

     3,402        203,508   

Discover Financial Services

     5,423        208,948   

Eaton Vance Corp. NVS

     1,233        47,088   

Franklin Resources Inc.

     1,596        225,435   

IntercontinentalExchange Inc.a

     781        120,914   

Invesco Ltd.

     4,770        127,788   

Legg Mason Inc.

     1,273        36,281   

NASDAQ OMX Group Inc. (The)

     1,329        42,076   

NYSE Euronext Inc.

     2,611        97,338   

SLM Corp.

     4,965        94,186   

T. Rowe Price Group Inc.

     2,738        194,918   

TD Ameritrade Holding Corp.

     2,343        44,541   

Visa Inc. Class A

     5,753        912,656   
   

 

 

  
      3,799,583   

ELECTRIC — 3.02%

  

  

AES Corp. (The)

     6,793        78,935   

Alliant Energy Corp.

     1,192        56,846   

Ameren Corp.

     2,607        88,091   

American Electric Power Co. Inc.

     5,213        243,916   

Calpine Corp.a

     3,251        59,818   

CMS Energy Corp.

     2,849        75,812   

Consolidated Edison Inc.

     3,146        185,614   

Dominion Resources Inc.

     6,173        345,688   

DTE Energy Co.

     1,849        123,513   

Duke Energy Corp.

     7,566        523,945   
Security   Shares     Value  
   

Edison International

     3,325      $ 159,700   

Entergy Corp.

     1,909        118,854   

Exelon Corp.

     9,177        284,395   

FirstEnergy Corp.

     4,493        177,384   

Integrys Energy Group Inc.

     841        47,575   

MDU Resources Group Inc.

     1,927        46,556   

NextEra Energy Inc.

     4,319        310,407   

Northeast Utilities

     3,373        140,013   

NRG Energy Inc.

     3,462        83,088   

OGE Energy Corp.

     1,061        61,443   

Pepco Holdings Inc.

     2,465        50,015   

PG&E Corp.

     4,619        196,954   

Pinnacle West Capital Corp.

     1,178        65,897   

PPL Corp.

     6,249        192,594   

Public Service Enterprise Group Inc.

     5,435        177,127   

SCANA Corp.

     1,345        65,690   

Southern Co. (The)

     9,390        422,644   

Wisconsin Energy Corp.

     2,472        102,094   

Xcel Energy Inc.

     5,238        150,331   
   

 

 

  
      4,634,939   

ELECTRICAL COMPONENTS & EQUIPMENT — 0.40%

  

AMETEK Inc.

     2,610        109,176   

Emerson Electric Co.

     7,779        441,069   

Energizer Holdings Inc.

     665        61,134   
   

 

 

  
      611,379   

ELECTRONICS — 1.21%

    

Agilent Technologies Inc.

     3,743        155,260   

Amphenol Corp. Class A

     1,723        122,092   

Avnet Inc.a

     1,474        52,047   

Flextronics International Ltd.a

     7,125        47,381   

FLIR Systems Inc.

     1,612        42,460   

Garmin Ltd.b

     1,257        43,165   

Honeywell International Inc.

     7,995        560,450   

Sensata Technologies Holding NVa

     1,247        40,515   

TE Connectivity Ltd.

     4,540        182,190   

Thermo Fisher Scientific Inc.

     3,870        285,606   

Trimble Navigation Ltd.a

     1,356        80,587   

Tyco International Ltd.

     5,003        160,146   

Waters Corp.a,b

     934        86,600   
   

 

 

  
      1,858,499   

ENGINEERING & CONSTRUCTION — 0.15%

  

  

Fluor Corp.

     1,789        110,739   
 

 

SCHEDULES OF INVESTMENTS

      37   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI USA INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Jacobs Engineering Group Inc.a

     1,397      $ 68,230   

KBR Inc.

     1,585        48,168   
   

 

 

  
      227,137   

ENTERTAINMENT — 0.04%

    

Dolby Laboratories Inc. Class A

     492        15,685   

International Game Technology

     2,859        45,572   
   

 

 

  
      61,257   

ENVIRONMENTAL CONTROL — 0.24%

  

  

Republic Services Inc.

     3,330        104,695   

Stericycle Inc.a

     923        88,534   

Waste Management Inc.

     4,734        176,673   
   

 

 

  
      369,902   

FOOD — 1.83%

  

Campbell Soup Co.

     2,021        83,184   

ConAgra Foods Inc.

     4,378        149,334   

General Mills Inc.

     6,932        320,605   

H.J. Heinz Co.

     3,445        249,521   

Hershey Co. (The)

     1,659        138,261   

Hormel Foods Corp.

     1,553        58,098   

J.M. Smucker Co. (The)

     1,176        112,073   

Kellogg Co.

     2,695        163,048   

Kraft Foods Group Inc.

     6,046        293,050   

Kroger Co. (The)

     5,244        153,177   

McCormick & Co. Inc. NVS

     1,290        86,778   

Mondelez International Inc. Class A

     18,136        501,460   

Safeway Inc.

     2,574        61,416   

Sysco Corp.

     6,315        203,090   

Tyson Foods Inc. Class A

     3,102        70,322   

Whole Foods Market Inc.

     1,893        162,079   
   

 

 

  
      2,805,496   

FOREST PRODUCTS & PAPER — 0.17%

  

  

International Paper Co.

     4,482        197,253   

MeadWestvaco Corp.

     1,878        67,063   
   

 

 

  
      264,316   

GAS — 0.25%

    

CenterPoint Energy Inc.

     4,362        93,478   

NiSource Inc.

     3,328        92,185   

Sempra Energy

     2,468        191,912   
   

 

 

  
      377,575   

HAND & MACHINE TOOLS — 0.09%

  

  

Stanley Black & Decker Inc.

     1,716        135,049   
   

 

 

  
      135,049   
Security   Shares     Value  
   

HEALTH CARE — PRODUCTS — 1.84%

  

Baxter International Inc.

     5,902      $ 398,975   

Becton, Dickinson and Co.

     2,116        186,335   

Boston Scientific Corp.a,b

     14,750        109,003   

C.R. Bard Inc.

     840        83,034   

CareFusion Corp.a

     2,384        78,052   

Covidien PLC

     5,086        323,317   

Edwards Lifesciences Corp.a

     1,240        106,553   

Henry Schein Inc.a

     945        84,313   

Hologic Inc.a

     2,866        62,565   

Hospira Inc.a

     1,775        52,238   

Intuitive Surgical Inc.a

     427        217,723   

Medtronic Inc.

     10,959        492,717   

ResMed Inc.b

     1,537        68,381   

St. Jude Medical Inc.

     3,311        135,751   

Stryker Corp.

     3,268        208,760   

Varian Medical Systems Inc.a,b

     1,175        82,990   

Zimmer Holdings Inc.

     1,864        139,725   
   

 

 

  
      2,830,432   

HEALTH CARE — SERVICES — 1.13%

    

Aetna Inc.

     3,594        169,601   

Cigna Corp.

     3,071        179,531   

Coventry Health Care Inc.

     1,445        65,545   

DaVita HealthCare Partners Inc.a

     1,060        126,797   

HCA Holdings Inc.

     2,859        106,040   

Humana Inc.

     1,700        116,042   

Laboratory Corp. of America Holdingsa

     1,016        90,018   

Quest Diagnostics Inc.

     1,708        95,939   

UnitedHealth Group Inc.

     10,974        586,560   

WellPoint Inc.

     3,262        202,831   
   

 

 

  
      1,738,904   

HOLDING COMPANIES — DIVERSIFIED — 0.04%

  

  

Leucadia National Corp.

     2,233        60,068   
   

 

 

  
      60,068   

HOME BUILDERS — 0.17%

    

D.R. Horton Inc.

     3,173        70,758   

Lennar Corp. Class A

     1,714        66,143   

PulteGroup Inc.a,b

     3,710        71,158   

Toll Brothers Inc.a,b

     1,626        55,479   
   

 

 

  
      263,538   
 

 

38    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI USA INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

HOME FURNISHINGS — 0.06%

    

Whirlpool Corp.

     836      $ 94,426   
   

 

 

  
      94,426   

HOUSEHOLD PRODUCTS & WARES — 0.42%

  

  

Avery Dennison Corp.

     1,070        43,710   

Church & Dwight Co. Inc.

     1,501        93,002   

Clorox Co. (The)

     1,332        111,901   

Kimberly-Clark Corp.

     4,204        396,353   
   

 

 

  
      644,966   

HOUSEWARES — 0.05%

    

Newell Rubbermaid Inc.

     3,090        72,121   
   

 

 

  
      72,121   

INSURANCE — 3.58%

    

ACE Ltd.

     3,651        311,759   

Aflac Inc.

     5,037        251,598   

Alleghany Corp.a,b

     137        51,768   

Allstate Corp. (The)

     5,176        238,199   

American International Group Inc.a

     15,067        572,697   

Aon PLC

     3,252        198,665   

Arch Capital Group Ltd.a,b

     1,467        72,059   

Assurant Inc.

     846        35,524   

Axis Capital Holdings Ltd.

     1,182        48,143   

Berkshire Hathaway Inc. Class Ba

     10,633        1,086,267   

Chubb Corp. (The)

     2,814        236,460   

Cincinnati Financial Corp.

     1,660        74,717   

Everest Re Group Ltd.

     556        69,283   

Fidelity National Financial Inc. Class A

     2,179        54,344   

Hartford Financial Services Group Inc. (The)

     4,453        105,135   

Lincoln National Corp.

     2,954        87,261   

Loews Corp.

     3,383        145,841   

Marsh & McLennan Companies Inc.

     5,848        217,195   

MetLife Inc.

     9,377        332,321   

PartnerRe Ltd.b

     658        58,720   

Principal Financial Group Inc.

     3,154        99,698   

Progressive Corp. (The)

     6,172        150,350   

Prudential Financial Inc.

     4,963        275,794   

RenaissanceRe Holdings Ltd.

     517        45,206   

Torchmark Corp.

     1,020        57,314   

Travelers Companies Inc. (The)

     4,098        329,561   

Unum Group

     2,956        72,333   

W.R. Berkley Corp.

     1,240        51,460   
Security   Shares     Value  
   

Willis Group Holdings PLC

     1,858      $ 70,753   

XL Group PLC

     3,229        92,479   
   

 

 

  
      5,492,904   

INTERNET — 3.94%

    

Amazon.com Inc.a

     3,893        1,028,803   

eBay Inc.a

     12,511        684,102   

Equinix Inc.a,b

     522        110,429   

Expedia Inc.

     1,049        66,968   

F5 Networks Inc.a

     849        80,171   

Facebook Inc. Class Aa

     17,188        468,373   

Google Inc. Class Aa

     2,846        2,280,215   

Liberty Interactive Corp. Series Aa

     5,531        115,487   

LinkedIn Corp. Class Aa,b

     937        157,585   

Netflix Inc.a

     567        106,641   

Priceline.com Inc.a,b

     536        368,543   

Rackspace Hosting Inc.a

     1,177        65,747   

Symantec Corp.a

     7,454        174,722   

VeriSign Inc.a

     1,668        76,394   

Yahoo! Inc.a

     12,070        257,212   
   

 

 

  
      6,041,392   

IRON & STEEL — 0.17%

    

Allegheny Technologies Inc.

     1,095        33,365   

Cliffs Natural Resources Inc.

     1,628        41,449   

Nucor Corp.

     3,412        153,710   

United States Steel Corp.

     1,550        32,302   
   

 

 

  
      260,826   

LEISURE TIME — 0.27%

    

Carnival Corp.

     4,790        171,338   

Harley-Davidson Inc.

     2,431        127,944   

Polaris Industries Inc.

     704        61,508   

Royal Caribbean Cruises Ltd.

     1,523        53,107   
   

 

 

  
      413,897   

LODGING — 0.46%

    

Las Vegas Sands Corp.

     4,423        227,740   

Marriott International Inc. Class A

     2,712        106,988   

MGM Resorts Internationala,b

     3,942        49,235   

Starwood Hotels & Resorts Worldwide Inc.

     2,105        126,995   

Wyndham Worldwide Corp.

     1,507        90,782   

Wynn Resorts Ltd.

     864        101,002   
   

 

 

  
      702,742   
 

 

SCHEDULES OF INVESTMENTS

      39   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI USA INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

MACHINERY — 1.15%

  

AGCO Corp.

     1,042      $ 53,642   

Caterpillar Inc.

     7,025        648,899   

Cummins Inc.

     1,940        224,788   

Deere & Co.

     3,997        351,056   

Flowserve Corp.

     537        86,188   

Joy Global Inc.

     1,137        72,018   

Rockwell Automation Inc.

     1,497        135,239   

Roper Industries Inc.

     1,057        131,713   

Xylem Inc.

     1,996        54,890   
   

 

 

  
      1,758,433   

MANUFACTURING — 3.37%

  

3M Co.

     7,062        734,448   

Danaher Corp.

     6,325        389,620   

Dover Corp.

     1,923        141,052   

Eaton Corp. PLC

     4,976        308,363   

General Electric Co.

     112,653        2,615,803   

Illinois Tool Works Inc.

     4,481        275,582   

Ingersoll-Rand PLC

     3,234        170,270   

Leggett & Platt Inc.

     1,518        46,420   

Pall Corp.

     1,220        83,180   

Parker Hannifin Corp.

     1,603        151,451   

Pentair Ltd. Registered

     2,259        120,337   

SPX Corp.

     546        43,958   

Textron Inc.

     3,028        87,358   
   

 

 

  
      5,167,842   

MEDIA — 3.50%

  

Cablevision NY Group Class A

     2,021        28,274   

CBS Corp. Class B NVS

     6,362        276,047   

Charter Communications Inc. Class Aa

     434        37,493   

Comcast Corp. Class A

     22,763        905,740   

Comcast Corp. Class A Special NVS

     5,682        217,677   

DIRECTVa

     6,166        297,016   

Discovery Communications Inc. Series Aa,b

     1,557        114,175   

Discovery Communications Inc. Series C NVSa

     938        60,501   

DISH Network Corp. Class A

     2,288        79,622   

Liberty Global Inc. Series Aa,b

     1,472        101,406   

Liberty Global Inc. Series C NVSa,b

     1,164        74,333   

Liberty Media Corp.a

     1,126        121,608   

McGraw-Hill Companies Inc. (The)

     2,685        124,987   

News Corp. Class A NVS

     16,609        478,339   
Security   Shares     Value  
   

News Corp. Class B

     4,718      $ 138,049   

Nielsen Holdings NVa

     1,805        60,811   

Scripps Networks Interactive Inc. Class A

     931        58,700   

Sirius XM Radio Inc.

     36,361        112,719   

Time Warner Cable Inc.

     3,242        280,076   

Time Warner Inc.

     10,172        540,845   

Viacom Inc. Class B NVS

     4,845        283,239   

Walt Disney Co. (The)

     18,086        987,315   
   

 

 

  
      5,378,972   

METAL FABRICATE & HARDWARE — 0.19%

  

Precision Castparts Corp.

     1,563        291,640   
   

 

 

  
      291,640   

MINING — 0.46%

  

Alcoa Inc.

     11,465        97,682   

Freeport-McMoRan Copper & Gold Inc.

     10,198        325,520   

Newmont Mining Corp.

     5,333        214,867   

Vulcan Materials Co.

     1,392        70,894   
   

 

 

  
      708,963   

OFFICE & BUSINESS EQUIPMENT — 0.09%

  

Pitney Bowes Inc.b

     2,157        28,256   

Xerox Corp.

     13,671        110,872   
   

 

 

  
      139,128   

OIL & GAS — 8.75%

  

Anadarko Petroleum Corp.

     5,369        427,265   

Apache Corp.

     4,204        312,231   

Cabot Oil & Gas Corp.

     2,259        139,990   

Chesapeake Energy Corp.

     7,140        143,942   

Chevron Corp.

     21,026        2,463,196   

Cimarex Energy Co.

     930        62,598   

Cobalt International Energy Inc.a

     2,426        59,849   

Concho Resources Inc.a

     1,067        95,987   

ConocoPhillips

     12,389        717,943   

Continental Resources Inc.a

     497        43,736   

Denbury Resources Inc.a,b

     4,157        75,325   

Devon Energy Corp.

     4,133        224,257   

Diamond Offshore Drilling Inc.

     747        52,051   

Energen Corp.

     775        35,836   

Ensco PLC Class A

     2,495        150,049   

EOG Resources Inc.

     2,910        365,816   

EQT Corp.

     1,607        101,386   

Exxon Mobil Corp.

     48,980        4,386,159   

Helmerich & Payne Inc.

     1,136        75,271   
 

 

40    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI USA INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Hess Corp.

     3,302      $ 219,583   

HollyFrontier Corp.

     2,073        116,503   

Marathon Oil Corp.

     7,589        254,231   

Marathon Petroleum Corp.

     3,644        302,015   

Murphy Oil Corp.

     1,983        120,725   

Nabors Industries Ltd.a

     3,120        52,291   

Newfield Exploration Co.a

     1,453        33,593   

Noble Corp.

     2,715        97,251   

Noble Energy Inc.

     1,911        211,796   

Occidental Petroleum Corp.

     8,704        716,600   

Phillips 66

     6,387        402,126   

Pioneer Natural Resources Co.

     1,422        178,902   

Plains Exploration & Production Co.a

     1,386        62,883   

QEP Resources Inc.

     1,913        58,270   

Range Resources Corp.

     1,747        134,170   

Rowan Companies PLCa,b

     1,334        46,143   

Southwestern Energy Co.a

     3,764        128,992   

Ultra Petroleum Corp.a,b

     1,643        28,030   

Valero Energy Corp.

     5,947        271,124   

Whiting Petroleum Corp.a

     1,264        61,557   
   

 

 

  
      13,429,672   

OIL & GAS SERVICES — 1.72%

  

Baker Hughes Inc.

     4,723        211,685   

Cameron International Corp.a

     2,650        168,858   

Core Laboratories NV

     501        68,712   

FMC Technologies Inc.a,b

     2,554        132,578   

Halliburton Co.

     9,969        413,813   

National Oilwell Varco Inc.

     4,586        312,444   

Oceaneering International Inc.

     1,159        73,701   

Schlumberger Ltd.

     14,262        1,110,297   

Superior Energy Services Inc.a

     1,694        44,807   

Weatherford International Ltd.a,b

     8,148        96,798   
   

 

 

  
      2,633,693   

PACKAGING & CONTAINERS — 0.19%

  

Ball Corp.

     1,570        69,724   

Crown Holdings Inc.a

     1,548        60,171   

Owens-Illinois Inc.a

     1,679        42,814   

Rock-Tenn Co. Class A

     764        67,576   

Sealed Air Corp.

     1,985        44,087   
   

 

 

  
      284,372   
Security   Shares     Value  
   

PHARMACEUTICALS — 6.87%

  

Abbott Laboratories

     16,981      $ 573,788   

AbbVie Inc.

     16,859        622,434   

Actavis Inc.a

     1,372        116,840   

Allergan Inc.

     3,304        358,220   

AmerisourceBergen Corp.

     2,530        119,416   

Bristol-Myers Squibb Co.

     17,733        655,589   

Cardinal Health Inc.

     3,650        168,666   

DENTSPLY International Inc.

     1,525        63,165   

Eli Lilly and Co.

     11,220        613,285   

Express Scripts Holding Co.a

     8,770        499,101   

Forest Laboratories Inc.a

     2,858        105,174   

Herbalife Ltd.b

     1,160        46,736   

Johnson & Johnson

     29,771        2,265,871   

McKesson Corp.

     2,536        269,146   

Mead Johnson Nutrition Co. Class A

     2,181        163,379   

Merck & Co. Inc.

     32,659        1,395,519   

Mylan Inc.a

     4,378        129,633   

Omnicare Inc.

     1,187        44,228   

Patterson Companies Inc.

     948        34,450   

Perrigo Co.

     958        108,417   

Pfizer Inc.

     79,095        2,164,830   

Warner Chilcott PLC Class A

     2,287        30,897   
   

 

 

  
      10,548,784   

PIPELINES — 0.59%

  

Kinder Morgan Inc.

     7,136        264,531   

Kinder Morgan Management LLCa,b

     1,112        92,107   

ONEOK Inc.

     2,088        93,939   

Spectra Energy Corp.

     7,015        203,716   

Williams Companies Inc. (The)

     7,241        251,335   
   

 

 

  
      905,628   

REAL ESTATE — 0.05%

  

CBRE Group Inc. Class Aa

     3,360        81,211   
   

 

 

  
      81,211   

REAL ESTATE INVESTMENT TRUSTS — 2.75%

  

American Capital Agency Corp.

     4,178        132,526   

American Tower Corp.

     4,247        329,567   

Annaly Capital Management Inc.b

     10,474        162,242   

AvalonBay Communities Inc.

     1,205        150,420   

Boston Properties Inc.

     1,621        168,390   

Camden Property Trust

     904        62,503   

Digital Realty Trust Inc.b

     1,325        88,749   
 

 

SCHEDULES OF INVESTMENTS

      41   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI USA INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Duke Realty Corp.b

     3,379      $ 54,605   

Equity Residentialb

     3,456        190,218   

Federal Realty Investment Trust

     694        73,710   

General Growth Properties Inc.

     4,539        86,876   

HCP Inc.b

     4,856        237,361   

Health Care REIT Inc.b

     2,790        178,951   

Host Hotels & Resorts Inc.

     7,786        129,793   

Kimco Realty Corp.b

     4,379        95,331   

Liberty Property Trust

     1,270        49,263   

Macerich Co. (The)b

     1,468        88,241   

Plum Creek Timber Co. Inc.b

     1,736        84,196   

Prologis Inc.b

     4,951        192,792   

Public Storage

     1,567        236,946   

Rayonier Inc.

     1,324        73,972   

Realty Income Corp.

     1,923        87,785   

Regency Centers Corp.

     971        50,375   

Simon Property Group Inc.

     3,323        527,892   

SL Green Realty Corp.b

     1,012        82,599   

UDR Inc.b

     2,687        64,112   

Ventas Inc.b

     3,175        224,727   

Vornado Realty Trust

     1,800        144,378   

Weyerhaeuser Co.

     5,818        171,107   
   

 

 

  
      4,219,627   

RETAIL — 6.21%

  

Advance Auto Parts Inc.

     788        60,156   

AutoZone Inc.a,b

     353        134,193   

Bed Bath & Beyond Inc.a,b

     2,462        139,719   

Best Buy Co. Inc.

     3,074        50,444   

CarMax Inc.a,b

     2,458        94,412   

Chipotle Mexican Grill Inc.a

     338        107,075   

Costco Wholesale Corp.

     4,645        470,492   

CVS Caremark Corp.

     13,393        684,650   

Darden Restaurants Inc.

     1,382        63,945   

Dick’s Sporting Goods Inc.

     1,049        52,450   

Dollar General Corp.a

     2,821        130,725   

Dollar Tree Inc.a,b

     2,441        110,297   

Family Dollar Stores Inc.

     1,054        60,658   

GameStop Corp. Class A

     1,299        32,553   

Gap Inc. (The)

     3,358        110,545   

Home Depot Inc. (The)

     16,063        1,100,315   

J.C. Penney Co. Inc.b

     1,766        31,029   

Kohl’s Corp.

     2,347        108,197   
Security   Shares     Value  
   

Limited Brands Inc.

     2,633      $ 119,854   

Lowe’s Companies Inc.

     12,082        460,928   

Lululemon Athletica Inc.a,b

     1,084        72,682   

Macy’s Inc.

     4,246        174,511   

McDonald’s Corp.

     10,786        1,034,377   

Nordstrom Inc.

     1,727        93,638   

O’Reilly Automotive Inc.a

     1,231        125,242   

PetSmart Inc.

     1,155        75,202   

PVH Corp.

     866        105,522   

Ross Stores Inc.

     2,406        139,452   

Sears Holdings Corp.a,b

     400        18,000   

Staples Inc.

     7,239        95,410   

Starbucks Corp.

     7,988        437,902   

Target Corp.

     6,642        418,180   

Tiffany & Co.

     1,362        91,472   

TJX Companies Inc. (The)

     7,834        352,295   

Tractor Supply Co.

     757        78,720   

Ulta Salon, Cosmetics & Fragrance Inc.

     651        57,653   

Urban Outfitters Inc.a

     1,254        50,812   

Wal-Mart Stores Inc.

     17,969        1,271,846   

Walgreen Co.

     9,652        395,153   

Yum! Brands Inc.

     4,854        317,840   
   

 

 

  
      9,528,546   

SAVINGS & LOANS — 0.10%

  

Hudson City Bancorp Inc.

     5,107        43,512   

New York Community Bancorp Inc.

     4,717        63,679   

People’s United Financial Inc.

     3,735        48,929   
   

 

 

  
      156,120   

SEMICONDUCTORS — 2.82%

  

Altera Corp.

     3,444        121,986   

Analog Devices Inc.

     3,238        146,422   

Applied Materials Inc.

     13,294        182,128   

Avago Technologies Ltd.

     2,637        90,238   

Broadcom Corp. Class A

     5,500        187,605   

Cree Inc.a,b

     1,187        53,688   

Intel Corp.

     53,456        1,114,558   

KLA-Tencor Corp.

     1,789        97,966   

Lam Research Corp.a

     1,841        77,874   

Linear Technology Corp.

     2,486        95,065   

LSI Corp.a

     5,945        41,377   

Marvell Technology Group Ltd.

     4,885        49,338   

Maxim Integrated Products Inc.

     3,132        97,656   
 

 

42    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI USA INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Microchip Technology Inc.

     2,091      $ 76,259   

Micron Technology Inc.a

     10,932        91,719   

NVIDIA Corp.

     6,713        84,987   

QUALCOMM Inc.

     18,306        1,201,423   

Texas Instruments Inc.

     12,041        413,849   

Xilinx Inc.

     2,803        104,468   
   

 

 

  
      4,328,606   

SOFTWARE — 3.66%

  

Activision Blizzard Inc.

     4,781        68,368   

Adobe Systems Inc.a

     5,318        208,998   

Akamai Technologies Inc.a

     1,907        70,483   

ANSYS Inc.a,b

     995        75,421   

Autodesk Inc.a

     2,438        89,523   

BMC Software Inc.a

     1,664        66,677   

CA Inc.

     3,454        84,589   

Cerner Corp.a

     1,567        137,050   

Citrix Systems Inc.a

     2,006        142,225   

Dun & Bradstreet Corp. (The)b

     479        38,607   

Electronic Arts Inc.a,b

     3,278        57,463   

Fidelity National Information Services Inc.

     2,520        94,878   

Fiserv Inc.a

     1,434        117,746   

Intuit Inc.

     3,021        194,794   

Microsoft Corp.

     81,375        2,262,225   

Nuance Communications Inc.a,b

     2,685        49,431   

Oracle Corp.

     41,416        1,418,912   

Red Hat Inc.a

     2,077        105,532   

Salesforce.com Inc.a

     1,449        245,200   

VeriFone Systems Inc.a,b

     1,158        21,967   

VMware Inc. Class Aa,b

     892        64,072   
   

 

 

  
      5,614,161   

TELECOMMUNICATIONS — 4.15%

  

AT&T Inc.

     61,019        2,191,192   

CenturyLink Inc.

     6,706        232,497   

Cisco Systems Inc.

     57,037        1,189,221   

Corning Inc.

     15,876        200,196   

Crown Castle International Corp.a

     3,149        219,800   

Frontier Communications Corp.b

     10,726        44,406   

Harris Corp.

     1,220        58,645   

Juniper Networks Inc.a

     5,539        114,547   

Level 3 Communications Inc.a,b

     1,639        32,747   

MetroPCS Communications Inc.a

     3,325        32,585   

Motorola Solutions Inc.

     2,712        168,714   
Security   Shares     Value  
   

SBA Communications Corp. Class Aa

     1,358      $ 96,581   

Sprint Nextel Corp.a

     32,278        187,212   

Verizon Communications Inc.

     30,660        1,426,610   

Virgin Media Inc.

     2,739        127,090   

Windstream Corp.

     6,318        54,272   
   

 

 

  
      6,376,315   

TEXTILES — 0.08%

  

Cintas Corp.

     1,208        53,031   

Mohawk Industries Inc.a,b

     631        66,899   
   

 

 

  
      119,930   

TOYS, GAMES & HOBBIES — 0.13%

  

Hasbro Inc.b

     1,256        50,265   

Mattel Inc.

     3,686        150,205   
   

 

 

  
      200,470   

TRANSPORTATION — 1.66%

  

C.H. Robinson Worldwide Inc.

     1,732        98,759   

CSX Corp.

     11,080        254,175   

Expeditors International of Washington Inc.

     2,245        87,218   

FedEx Corp.

     3,206        338,009   

J.B. Hunt Transport Services Inc.

     1,016        70,632   

Kansas City Southern Industries Inc.

     1,182        121,711   

Norfolk Southern Corp.

     3,395        248,005   

Union Pacific Corp.

     5,053        692,817   

United Parcel Service Inc. Class B

     7,773        642,438   
   

 

 

  
      2,553,764   

WATER — 0.05%

  

American Water Works Co. Inc.

     1,899        74,915   
   

 

 

  
      74,915   
   

 

 

  

TOTAL COMMON STOCKS

    

(Cost: $130,984,643)

       153,014,883   

SHORT-TERM INVESTMENTS — 1.85%

  

  

MONEY MARKET FUNDS — 1.85%

    

BlackRock Cash Funds: Institutional,
SL Agency Shares

    

0.21%c,d,e

     2,503,352        2,503,352   

BlackRock Cash Funds: Prime,
SL Agency Shares

    

0.18%c,d,e

     181,251        181,251   
 

 

SCHEDULES OF INVESTMENTS

      43   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI USA INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

BlackRock Cash Funds: Treasury,
SL Agency Shares

    

0.04%c,d

     152,842      $ 152,842   
   

 

 

  
      2,837,445   
   

 

 

  

TOTAL SHORT-TERM INVESTMENTS

  

  

(Cost: $2,837,445)

       2,837,445   
   

 

 

  

TOTAL INVESTMENTS
IN SECURITIES — 101.55%

   

  

(Cost: $133,822,088)

       155,852,328   

Other Assets, Less Liabilities — (1.55)%

       (2,371,292 ) 
   

 

 

  

NET ASSETS — 100.00%

     $ 153,481,036   
   

 

 

  

NVS  —  Non-Voting Shares

 

a 

Non-income earning security.

b 

All or a portion of this security represents a security on loan. See Note 5.

c 

Affiliated issuer. See Note 2.

d 

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

e 

All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

 

 

44    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Statements of Assets and Liabilities (Unaudited)

iSHARES®, INC.

February 28, 2013

 

     

iShares
MSCI Brazil Capped

Index Fund

    

iShares

MSCI Canada

Index Fund

     iShares
MSCI Chile Capped
Investable Market
Index Fund		  

ASSETS

       

Investments, at cost:

       

Unaffiliated

    $ 5,905,464,573      $ 5,122,669,768      $ 419,214,651   

Affiliated (Note 2)

      811,745        52,643,979        19,603,844   
  

 

 

    

 

 

    

 

 

  

Total cost of investments

    $ 5,906,276,318      $ 5,175,313,747      $ 438,818,495   
  

 

 

    

 

 

    

 

 

  

Investments in securities, at fair value (including securities on loana) (Note 1):

       

Unaffiliated

    $ 8,318,249,385      $ 4,757,053,356      $ 614,277,024   

Affiliated (Note 2)

      811,745        52,643,979        19,603,844   
  

 

 

    

 

 

    

 

 

  

Total fair value of investments

      8,319,061,130        4,809,697,335        633,880,868   

Foreign currencies, at valueb

      9,338,605        20,947,503        —   

Foreign currencies pledged to broker, at valueb

      —        472,586        —   

Receivables:

       

Investment securities sold

      225,164,666        788,016        8,347,385   

Dividends and interest

      53,936,439        6,580,383        1,780   

Futures variation margin

      —        758,309        —   
  

 

 

    

 

 

    

 

 

  

Total Assets

      8,607,500,840        4,839,244,132        642,230,033   
  

 

 

    

 

 

    

 

 

  

LIABILITIES

       

Payables:

       

Investment securities purchased

      209,640,022        60,482,616        7,165,159   

Collateral for securities on loan (Note 5)

      —        52,031,217        —   

Capital shares redeemed

      17,729,710        2,484,143        —   

Investment advisory fees (Note 2)

      4,112,983        1,902,938        290,103   
  

 

 

    

 

 

    

 

 

  

Total Liabilities

      231,482,715        116,900,914        7,455,262   
  

 

 

    

 

 

    

 

 

  

NET ASSETS

    $ 8,376,018,125      $ 4,722,343,218      $ 634,774,771   
  

 

 

    

 

 

    

 

 

  

Net assets consist of:

       

Paid-in capital

    $ 7,448,877,628      $ 5,332,790,678      $ 535,689,516   

Distributions in excess of net investment income

      (29,992,426 )      (4,775,568 )      (215,174 ) 

Accumulated net realized loss

      (1,456,617,579 )      (240,321,548 )      (95,763,420 ) 

Net unrealized appreciation (depreciation) on investments and translation of assets and liabilities in foreign currencies

      2,413,750,502        (365,350,344 )      195,063,849   
  

 

 

    

 

 

    

 

 

  

NET ASSETS

    $ 8,376,018,125      $ 4,722,343,218      $ 634,774,771   
  

 

 

    

 

 

    

 

 

  

Shares outstandingc

      151,200,000        166,200,000        9,550,000   
  

 

 

    

 

 

    

 

 

  

Net asset value per share

    $ 55.40      $ 28.41      $ 66.47   
  

 

 

    

 

 

    

 

 

  

 

a 

Securities on loan with values of $  —, $49,488,389 and $  —, respectively. See Note 5.

b 

Cost of foreign currencies including currencies at broker, if any: $9,338,605, $21,865,959 and $  —, respectively.

c 

$0.001 par value, number of shares authorized: 500 million, 340.2 million and 200 million, respectively.

See notes to financial statements.

 

FINANCIAL STATEMENTS

      45   

Table of Contents

Statements of Assets and Liabilities (Unaudited) (Continued)

iSHARES®, INC.

February 28, 2013

 

      iShares
MSCI Israel Capped
Investable Market
Index Fund		     iShares
MSCI Mexico Capped
Investable Market
Index Fund		     iShares
MSCI South Africa
Index Fund		  

ASSETS

       

Investments, at cost:

       

Unaffiliated

    $ 100,418,890      $ 2,231,266,618      $ 538,714,918   

Affiliated (Note 2)

      777,345        41,018,664        5,215,141   
  

 

 

    

 

 

    

 

 

  

Total cost of investments

    $ 101,196,235      $ 2,272,285,282      $ 543,930,059   
  

 

 

    

 

 

    

 

 

  

Investments in securities, at fair value (including securities on loana) (Note 1):

       

Unaffiliated

    $ 80,362,653      $ 2,364,179,774      $ 505,634,924   

Affiliated (Note 2)

      777,345        41,018,664        5,215,141   
  

 

 

    

 

 

    

 

 

  

Total fair value of investments

      81,139,998        2,405,198,438        510,850,065   

Foreign currencies, at valueb

      55,438        3,807,717        176,594   

Receivables:

       

Investment securities sold

      200,375        69,927,850        616,215   

Dividends and interest

      127,057        620,270        3,536   

Capital shares sold

      —        174,220        —   
  

 

 

    

 

 

    

 

 

  

Total Assets

      81,522,868        2,479,728,495        511,646,410   
  

 

 

    

 

 

    

 

 

  

LIABILITIES

       

Payables:

       

Investment securities purchased

      193,936        68,718,304        413,640   

Collateral for securities on loan (Note 5)

      738,106        40,695,274        4,990,000   

Investment advisory fees (Note 2)

      36,907        889,187        232,228   
  

 

 

    

 

 

    

 

 

  

Total Liabilities

      968,949        110,302,765        5,635,868   
  

 

 

    

 

 

    

 

 

  

NET ASSETS

    $ 80,553,919      $ 2,369,425,730      $ 506,010,542   
  

 

 

    

 

 

    

 

 

  

Net assets consist of:

       

Paid-in capital

    $ 133,001,818      $ 2,354,061,238      $ 597,349,901   

Undistributed (distributions in excess of) net investment income

      (301,194 )      1,194,871        (4,431,954 ) 

Accumulated net realized loss

      (32,089,223 )      (118,751,069 )      (53,827,411 ) 

Net unrealized appreciation (depreciation) on investments and translation of assets and liabilities in foreign currencies

      (20,057,482 )      132,920,690        (33,079,994 ) 
  

 

 

    

 

 

    

 

 

  

NET ASSETS

    $ 80,553,919      $ 2,369,425,730      $ 506,010,542   
  

 

 

    

 

 

    

 

 

  

Shares outstandingc

      1,850,000        33,200,000        7,800,000   
  

 

 

    

 

 

    

 

 

  

Net asset value per share

    $ 43.54      $ 71.37      $ 64.87   
  

 

 

    

 

 

    

 

 

  

 

a 

Securities on loan with values of $699,777, $37,932,851 and $4,744,590, respectively. See Note 5.

b 

Cost of foreign currencies: $55,954, $3,807,717 and $176,594, respectively.

c

$0.001 par value, number of shares authorized: 500 million, 255 million and 400 million, respectively.

See notes to financial statements.

 

46    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Statements of Assets and Liabilities (Unaudited) (Continued)

iSHARES®, INC.

February 28, 2013

 

     

iShares
MSCI Turkey
Investable Market

Index Fund

     iShares
MSCI USA
Index Fund		  

ASSETS

     

Investments, at cost:

     

Unaffiliated

    $ 761,404,079      $ 130,400,845   

Affiliated (Note 2)

      23,506,698        3,421,243   
  

 

 

    

 

 

  

Total cost of investments

    $ 784,910,777      $ 133,822,088   
  

 

 

    

 

 

  

Investments in securities, at fair value (including securities on loana) (Note 1):

     

Unaffiliated

    $ 805,739,007      $ 152,311,067   

Affiliated (Note 2)

      23,506,698        3,541,261   
  

 

 

    

 

 

  

Total fair value of investments

      829,245,705        155,852,328   

Foreign currencies, at valueb

      415,821        —   

Receivables:

     

Investment securities sold

      —        822,544   

Dividends and interest

      66,234        366,142   
  

 

 

    

 

 

  

Total Assets

      829,727,760        157,041,014   
  

 

 

    

 

 

  

LIABILITIES

     

Payables:

     

Investment securities purchased

      —        857,664   

Collateral for securities on loan (Note 5)

      23,411,603        2,684,603   

Investment advisory fees (Note 2)

      378,701        17,711   
  

 

 

    

 

 

  

Total Liabilities

      23,790,304        3,559,978   
  

 

 

    

 

 

  

NET ASSETS

    $ 805,937,456      $ 153,481,036   
  

 

 

    

 

 

  

Net assets consist of:

     

Paid-in capital

    $ 793,287,774      $ 127,557,122   

Undistributed (distributions in excess of) net investment income

      (1,981,249 )      554,012   

Undistributed net realized gain (accumulated net realized loss)

      (29,696,749 )      3,339,662   

Net unrealized appreciation on investments and translation of assets and liabilities in foreign currencies

      44,327,680        22,030,240   
  

 

 

    

 

 

  

NET ASSETS

    $ 805,937,456      $ 153,481,036   
  

 

 

    

 

 

  

Shares outstandingc

      12,150,000        4,700,000   
  

 

 

    

 

 

  

Net asset value per share

    $ 66.33      $ 32.66   
  

 

 

    

 

 

  

 

a 

Securities on loan with values of $21,943,100 and $2,613,271, respectively. See Note 5.

b 

Cost of foreign currencies: $423,069 and $  —, respectively.

c 

$0.001 par value, number of shares authorized: 200 million and 500 million, respectively.

See notes to financial statements.

 

FINANCIAL STATEMENTS

      47   

Table of Contents

Statements of Operations (Unaudited)

iSHARES®, INC.

Six months ended February 28, 2013

 

      iShares
MSCI Brazil Capped
Index Fund		     iShares
MSCI Canada
Index Fund		     iShares
MSCI Chile Capped
Investable Market
Index Fund		  

NET INVESTMENT INCOME

       

Dividends — unaffiliateda

    $ 136,032,472      $ 56,120,308      $ 2,260,103   

Interest — unaffiliated

      —        4,812        —   

Interest — affiliated (Note 2)

      2,943        1,886        575   

Securities lending income — affiliated (Note 2)

      42        383,824        —   
  

 

 

    

 

 

    

 

 

  

Total investment income

      136,035,457        56,510,830        2,260,678   
  

 

 

    

 

 

    

 

 

  

EXPENSES

       

Investment advisory fees (Note 2)

      26,696,139        11,730,383        1,702,825   
  

 

 

    

 

 

    

 

 

  

Total expenses

      26,696,139        11,730,383        1,702,825   
  

 

 

    

 

 

    

 

 

  

Net investment income

      109,339,318        44,780,447        557,853   
  

 

 

    

 

 

    

 

 

  

NET REALIZED AND UNREALIZED GAIN (LOSS)

       

Net realized gain (loss) from:

       

Investments — unaffiliated

      (268,881,056 )      (13,506,043 )      (3,093,644 ) 

In-kind redemptions — unaffiliated

      47,225,661        43,468,206        —   

Futures contracts

      —        234,177        —   

Foreign currency transactions

      (237,319 )      (452,599 )      (90,933 ) 
  

 

 

    

 

 

    

 

 

  

Net realized gain (loss)

      (221,892,714 )      29,743,741        (3,184,577 ) 
  

 

 

    

 

 

    

 

 

  

Net change in unrealized appreciation/depreciation on:

       

Investments

      584,531,085        124,749,830        58,497,961   

Futures contracts

      —        803,280        —   

Translation of assets and liabilities in foreign currencies

      2,043,644        (541,498 )      5,703   
  

 

 

    

 

 

    

 

 

  

Net change in unrealized appreciation/depreciation

      586,574,729        125,011,612        58,503,664   
  

 

 

    

 

 

    

 

 

  

Net realized and unrealized gain

      364,682,015        154,755,353        55,319,087   
  

 

 

    

 

 

    

 

 

  

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

    $ 474,021,333      $ 199,535,800      $ 55,876,940   
  

 

 

    

 

 

    

 

 

  

 

a 

Net of foreign withholding tax of $10,456,848, $9,816,757 and $708,316, respectively.

See notes to financial statements.

 

48    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Statements of Operations (Unaudited) (Continued)

iSHARES®, INC.

Six months ended February 28, 2013

 

      iShares
MSCI Israel Capped
Investable Market
Index Fund		     iShares
MSCI Mexico Capped
Investable Market
Index Fund		     iShares
MSCI South Africa
Index Fund		  

NET INVESTMENT INCOME

       

Dividends — unaffiliateda

    $ 876,271      $ 8,504,460      $ 6,547,374   

Interest — affiliated (Note 2)

      34        318        185   

Securities lending income — affiliated (Note 2)

      79,186        112,608        46,095   
  

 

 

    

 

 

    

 

 

  

Total investment income

      955,491        8,617,386        6,593,654   
  

 

 

    

 

 

    

 

 

  

EXPENSES

       

Investment advisory fees (Note 2)

      237,279        4,390,129        1,528,256   
  

 

 

    

 

 

    

 

 

  

Total expenses

      237,279        4,390,129        1,528,256   
  

 

 

    

 

 

    

 

 

  

Net investment income

      718,212        4,227,257        5,065,398   
  

 

 

    

 

 

    

 

 

  

NET REALIZED AND UNREALIZED GAIN (LOSS)

       

Net realized gain (loss) from:

       

Investments — unaffiliated

      (3,120,393 )      (51,996,638 )      (1,826,433 ) 

In-kind redemptions — unaffiliated

      871,361        20,705,624        11,186,106   

Foreign currency transactions

      23,160        80,202        (43,341 ) 
  

 

 

    

 

 

    

 

 

  

Net realized gain (loss)

      (2,225,872 )      (31,210,812 )      9,316,332   
  

 

 

    

 

 

    

 

 

  

Net change in unrealized appreciation/depreciation on:

       

Investments

      14,398,206        248,567,058        (3,945,724 ) 

Translation of assets and liabilities in foreign currencies

      (1,696 )      14,568        15,261   
  

 

 

    

 

 

    

 

 

  

Net change in unrealized appreciation/depreciation

      14,396,510        248,581,626        (3,930,463 ) 
  

 

 

    

 

 

    

 

 

  

Net realized and unrealized gain

      12,170,638        217,370,814        5,385,869   
  

 

 

    

 

 

    

 

 

  

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

    $ 12,888,850      $ 221,598,071      $ 10,451,267   
  

 

 

    

 

 

    

 

 

  

 

a 

Net of foreign withholding tax of $215,093, $ — and $863,781, respectively.

See notes to financial statements.

 

FINANCIAL STATEMENTS

      49   

Table of Contents

Statements of Operations (Unaudited) (Continued)

iSHARES®, INC.

Six months ended February 28, 2013

 

     

iShares
MSCI Turkey
Investable Market

Index Fund

     iShares
MSCI USA
Index Fund		  

NET INVESTMENT INCOME

     

Dividends — unaffiliateda

    $ 264,758      $ 1,838,891   

Dividends — affiliated (Note 2)

      —        6,867   

Interest — affiliated (Note 2)

      76        72   

Securities lending income — affiliated (Note 2)

      369,637        5,315   
  

 

 

    

 

 

  

Total investment income

      634,471        1,851,145   
  

 

 

    

 

 

  

EXPENSES

     

Investment advisory fees (Note 2)

      2,085,969        111,661   
  

 

 

    

 

 

  

Total expenses

      2,085,969        111,661   
  

 

 

    

 

 

  

Net investment income (loss)

      (1,451,498 )      1,739,484   
  

 

 

    

 

 

  

NET REALIZED AND UNREALIZED GAIN (LOSS)

     

Net realized gain (loss) from:

     

Investments — unaffiliated

      (7,347,042 )      (157,154 ) 

Investments — affiliated (Note 2)

      —        (658 ) 

In-kind redemptions — unaffiliated

      18,415,797        3,989,384   

In-kind redemptions — affiliated (Note 2)

      —        15,938   

Foreign currency transactions

      12,014        —   
  

 

 

    

 

 

  

Net realized gain

      11,080,769        3,847,510   
  

 

 

    

 

 

  

Net change in unrealized appreciation/depreciation on:

     

Investments

      95,489,406        7,463,089   

Translation of assets and liabilities in foreign currencies

      (6,743 )      —   
  

 

 

    

 

 

  

Net change in unrealized appreciation/depreciation

      95,482,663        7,463,089   
  

 

 

    

 

 

  

Net realized and unrealized gain

      106,563,432        11,310,599   
  

 

 

    

 

 

  

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

    $ 105,111,934      $ 13,050,083   
  

 

 

    

 

 

  

 

a 

Net of foreign withholding tax of $16,524 and $1,920, respectively.

See notes to financial statements.

 

50    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Statements of Changes in Net Assets

iSHARES®, INC.

 

         
iShares
MSCI Brazil Capped
Index Fund		     iShares
MSCI Canada
Index Fund		  
      Six months
ended
February 28, 2013
(Unaudited)		    

Year ended

August 31, 2012

     Six months
ended
February 28, 2013
(Unaudited)		    

Year ended

August 31, 2012

  

INCREASE (DECREASE) IN NET ASSETS

         

OPERATIONS:

         

Net investment income

    $ 109,339,318      $ 265,582,641      $ 44,780,447      $ 87,661,937   

Net realized gain (loss)

      (221,892,714 )      (543,223,728 )      29,743,741        21,344,695   

Net change in unrealized appreciation/depreciation

      586,574,729        (1,354,671,920 )      125,011,612        (434,518,038 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets resulting from operations

      474,021,333        (1,632,313,007 )      199,535,800        (325,511,406 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

DISTRIBUTIONS TO SHAREHOLDERS:

         

From net investment income

      (85,946,218 )      (82,370,233 )      (62,085,928 )      (94,130,044 ) 

Return of capital

      —        (133,826,010 )      —        —   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions to shareholders

      (85,946,218 )      (216,196,243 )      (62,085,928 )      (94,130,044 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

CAPITAL SHARE TRANSACTIONS:

         

Proceeds from shares sold

      1,642,559,353        139,197,302        613,910,740        652,923,013   

Cost of shares redeemed

      (1,025,233,433 )      (2,252,192,423 )      (283,561,696 )      (1,071,283,795 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from capital share transactions

      617,325,920        (2,112,995,121 )      330,349,044        (418,360,782 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

INCREASE (DECREASE) IN NET ASSETS

      1,005,401,035        (3,961,504,371 )      467,798,916        (838,002,232 ) 

NET ASSETS

         

Beginning of period

      7,370,617,090        11,332,121,461        4,254,544,302        5,092,546,534   
  

 

 

    

 

 

    

 

 

    

 

 

  

End of period

    $ 8,376,018,125      $ 7,370,617,090      $ 4,722,343,218      $ 4,254,544,302   
  

 

 

    

 

 

    

 

 

    

 

 

  

Undistributed (distributions in excess of) net investment income included in net assets at end of period

    $ (29,992,426 )    $ (53,385,526 )    $ (4,775,568 )    $ 12,529,913   
  

 

 

    

 

 

    

 

 

    

 

 

  

SHARES ISSUED AND REDEEMED

         

Shares sold

      29,600,000        2,600,000        21,600,000        23,900,000   

Shares redeemed

      (18,500,000 )      (36,850,000 )      (10,000,000 )      (39,700,000 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in shares outstanding

      11,100,000        (34,250,000 )      11,600,000        (15,800,000 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

See notes to financial statements.

 

FINANCIAL STATEMENTS

      51   

Table of Contents

Statements of Changes in Net Assets (Continued)

iSHARES®, INC.

 

     iShares
MSCI Chile Capped
Investable Market
Index Fund		     iShares
MSCI Israel Capped
Investable Market
Index Fund		  
      Six months
ended
February 28, 2013
(Unaudited)		    

Year ended

August 31, 2012

     Six months
ended
February 28, 2013
(Unaudited)		    

Year ended

August 31, 2012

  

INCREASE (DECREASE) IN NET ASSETS

         

OPERATIONS:

         

Net investment income

    $ 557,853      $ 9,312,365      $ 718,212      $ 2,116,888   

Net realized loss

      (3,184,577 )      (53,947,353 )      (2,225,872 )      (8,782,793 ) 

Net change in unrealized appreciation/depreciation

      58,503,664        (39,629,429 )      14,396,510        (7,354,630 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets resulting from operations

      55,876,940        (84,264,417 )      12,888,850        (14,020,535 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

DISTRIBUTIONS TO SHAREHOLDERS:

         

From net investment income

      (773,027 )      (8,674,940 )      (1,015,503 )      (1,986,153 ) 

Return of capital

      —        (430,786 )      —        (63,813 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions to shareholders

      (773,027 )      (9,105,726 )      (1,015,503 )      (2,049,966 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

CAPITAL SHARE TRANSACTIONS:

         

Proceeds from shares sold

      58,641,152        168,360,287        4,057,008        54,151,938   

Cost of shares redeemed

      (27,766,939 )      (234,211,464 )      (4,288,924 )      (47,186,462 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from capital share transactions

      30,874,213        (65,851,177 )      (231,916 )      6,965,476   
  

 

 

    

 

 

    

 

 

    

 

 

  

INCREASE (DECREASE) IN NET ASSETS

      85,978,126        (159,221,320 )      11,641,431        (9,105,025 ) 

NET ASSETS

         

Beginning of period

      548,796,645        708,017,965        68,912,488        78,017,513   
  

 

 

    

 

 

    

 

 

    

 

 

  

End of period

    $ 634,774,771      $ 548,796,645      $ 80,553,919      $ 68,912,488   
  

 

 

    

 

 

    

 

 

    

 

 

  

Undistributed (distributions in excess of) net investment income included in net assets at end of period

    $ (215,174 )    $ —      $ (301,194 )    $ (3,903 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

SHARES ISSUED AND REDEEMED

         

Shares sold

      900,000        2,600,000        100,000        1,300,000   

Shares redeemed

      (450,000 )      (4,050,000 )      (100,000 )      (1,150,000 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in shares outstanding

      450,000        (1,450,000 )      —        150,000   
  

 

 

    

 

 

    

 

 

    

 

 

  

See notes to financial statements.

 

52    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Statements of Changes in Net Assets (Continued)

iSHARES®, INC.

 

     iShares
MSCI Mexico Capped
Investable Market
Index Fund		     iShares
MSCI South Africa
Index Fund		  
      Six months
ended
February 28, 2013
(Unaudited)		    

Year ended

August 31, 2012

     Six months
ended
February 28, 2013
(Unaudited)		    

Year ended

August 31, 2012

  

INCREASE (DECREASE) IN NET ASSETS

         

OPERATIONS:

         

Net investment income

    $ 4,227,257      $ 14,544,267      $ 5,065,398      $ 16,812,091   

Net realized gain (loss)

      (31,210,812 )      51,713,777        9,316,332        9,214,776   

Net change in unrealized appreciation/depreciation

      248,581,626        (17,415,752 )      (3,930,463 )      (38,029,481 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets resulting from operations

      221,598,071        48,842,292        10,451,267        (12,002,614 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

DISTRIBUTIONS TO SHAREHOLDERS:

         

From net investment income

      (4,593,811 )      (16,941,924 )      (8,548,997 )      (16,263,704 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions to shareholders

      (4,593,811 )      (16,941,924 )      (8,548,997 )      (16,263,704 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

CAPITAL SHARE TRANSACTIONS:

         

Proceeds from shares sold

      1,073,335,530        1,078,823,186        86,109,028        164,594,240   

Cost of shares redeemed

      (103,613,612 )      (1,171,754,823 )      (53,922,934 )      (168,507,993 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from capital share transactions

      969,721,918        (92,931,637 )      32,186,094        (3,913,753 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

INCREASE (DECREASE) IN NET ASSETS

      1,186,726,178        (61,031,269 )      34,088,364        (32,180,071 ) 

NET ASSETS

         

Beginning of period

      1,182,699,552        1,243,730,821        471,922,178        504,102,249   
  

 

 

    

 

 

    

 

 

    

 

 

  

End of period

    $ 2,369,425,730      $ 1,182,699,552      $ 506,010,542      $ 471,922,178   
  

 

 

    

 

 

    

 

 

    

 

 

  

Undistributed (distributions in excess of) net investment income included in net assets at end of period

    $ 1,194,871      $ 1,561,425      $ (4,431,954 )    $ (948,355 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

SHARES ISSUED AND REDEEMED

         

Shares sold

      15,300,000        18,600,000        1,300,000        2,600,000   

Shares redeemed

      (1,500,000 )      (20,500,000 )      (800,000 )      (2,600,000 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in shares outstanding

      13,800,000        (1,900,000 )      500,000        —   
  

 

 

    

 

 

    

 

 

    

 

 

  

See notes to financial statements.

 

FINANCIAL STATEMENTS

      53   

Table of Contents

Statements of Changes in Net Assets (Continued)

iSHARES®, INC.

 

     iShares
MSCI Turkey
Investable Market
Index Fund		     iShares
MSCI USA
Index Fund		  
      Six months
ended
February 28, 2013
(Unaudited)		    

Year ended

August 31, 2012

     Six months
ended
February 28, 2013
(Unaudited)		    

Year ended

August 31, 2012

  

INCREASE (DECREASE) IN NET ASSETS

         

OPERATIONS:

         

Net investment income (loss)

    $ (1,451,498 )    $ 7,409,333      $ 1,739,484      $ 2,008,350   

Net realized gain (loss)

      11,080,769        (43,049,648 )      3,847,510        1,787,070   

Net change in unrealized appreciation/depreciation

      95,482,663        111,616,412        7,463,089        14,419,985   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase in net assets resulting from operations

      105,111,934        75,976,097        13,050,083        18,215,405   
  

 

 

    

 

 

    

 

 

    

 

 

  

DISTRIBUTIONS TO SHAREHOLDERS:

         

From net investment income

      —        (8,952,333 )      (1,775,339 )      (1,429,449 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions to shareholders

      —        (8,952,333 )      (1,775,339 )      (1,429,449 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

CAPITAL SHARE TRANSACTIONS:

         

Proceeds from shares sold

      215,267,068        169,170,485        18,838,623        150,498,448   

Cost of shares redeemed

      (75,725,831 )      (123,586,926 )      (22,102,164 )      (27,048,052 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from capital share transactions

      139,541,237        45,583,559        (3,263,541 )      123,450,396   
  

 

 

    

 

 

    

 

 

    

 

 

  

INCREASE IN NET ASSETS

      244,653,171        112,607,323        8,011,203        140,236,352   

NET ASSETS

         

Beginning of period

      561,284,285        448,676,962        145,469,833        5,233,481   
  

 

 

    

 

 

    

 

 

    

 

 

  

End of period

    $ 805,937,456      $ 561,284,285      $ 153,481,036      $ 145,469,833   
  

 

 

    

 

 

    

 

 

    

 

 

  

Undistributed (distributions in excess of) net investment income included in net assets at end of period

    $ (1,981,249 )    $ (529,751 )    $ 554,012      $ 589,867   
  

 

 

    

 

 

    

 

 

    

 

 

  

SHARES ISSUED AND REDEEMED

         

Shares sold

      3,350,000        3,250,000        600,000        5,550,000   

Shares redeemed

      (1,200,000 )      (2,650,000 )      (700,000 )      (950,000 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in shares outstanding

      2,150,000        600,000        (100,000 )      4,600,000   
  

 

 

    

 

 

    

 

 

    

 

 

  

See notes to financial statements.

 

54    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Financial Highlights

iSHARES®, INC.

(For a share outstanding throughout each period)

 

     iShares MSCI Brazil Capped Index Fund  
     

Six months
ended

Feb. 28, 2013
(Unaudited)

    

Year ended

Aug. 31, 2012

    

Year ended

Aug. 31, 2011

    

Year ended

Aug. 31, 2010

    

Year ended

Aug. 31, 2009

    

Year ended

Aug. 31, 2008

  

Net asset value, beginning of period

    $ 52.61      $ 65.00      $ 68.07      $ 58.26      $ 73.27      $ 61.59   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income from investment operations:

             

Net investment incomea

      0.67        1.73        2.24        1.56        1.56        1.93   

Net realized and unrealized gain (loss)b

      2.63        (12.64 )      (1.69 )      10.83        (14.63 )      11.59   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      3.30        (10.91 )      0.55        12.39        (13.07 )      13.52   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Less distributions from:

             

Net investment income

      (0.51 )      (0.56 )      (3.62 )      (2.58 )      (1.94 )      (1.41 ) 

Net realized gain

      —        —        —        —        —        (0.43 ) 

Return of capital

      —        (0.92 )      —        —        —        —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (0.51 )      (1.48 )      (3.62 )      (2.58 )      (1.94 )      (1.84 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of period

    $ 55.40      $ 52.61      $ 65.00      $ 68.07      $ 58.26      $ 73.27   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return

      6.29 %c      (16.79 )%      0.36 %      21.12 %      (16.05 )%      21.58 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios/Supplemental data:

             

Net assets, end of period (000s)

    $ 8,376,018      $ 7,370,617      $ 11,332,121      $ 9,240,453      $ 8,777,366      $ 7,242,260   

Ratio of expenses to average net assetsd,e

      0.60 %      0.61 %      0.59 %      0.61 %      0.65 %      0.63 % 

Ratio of net investment income to average net assetsd

      2.48 %      2.92 %      3.08 %      2.24 %      3.38 %      2.37 % 

Portfolio turnover ratef

      21 %      7 %      11 %      13 %      30 %      30 % 

 

a 

Based on average shares outstanding throughout each period.

b 

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.

c 

Not annualized.

d 

Annualized for periods of less than one year.

e 

Ratios for the years ended August 31, 2010 and prior have been recalculated, as necessary, to conform with the current presentation of foreign taxes.

f 

Portfolio turnover rates exclude portfolio securities received or delivered in Creation Units but include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely or partially for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the six months ended February 28, 2013 and the years ended August 31, 2012, August 31, 2011, August 31, 2010, August 31, 2009 and August 31, 2008 were 10%, 6%, 11%, 13%, 14%, and 19%, respectively. See Note 4.

See notes to financial statements.

 

FINANCIAL HIGHLIGHTS

      55   

Table of Contents

Financial Highlights (Continued)

iSHARES®, INC.

(For a share outstanding throughout each period)

 

     iShares MSCI Canada Index Fund  
     

Six months
ended

Feb. 28, 2013
(Unaudited)

    

Year ended

Aug. 31, 2012

    

Year ended

Aug. 31, 2011

    

Year ended

Aug. 31, 2010

    

Year ended

Aug. 31, 2009

    

Year ended

Aug. 31, 2008

  

Net asset value, beginning of period

    $ 27.52      $ 29.89      $ 26.10      $ 23.70      $ 30.55      $ 29.87   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income from investment operations:

             

Net investment incomea

      0.28        0.53        0.53        0.43        0.41        0.47   

Net realized and unrealized gain (loss)b

      0.99        (2.33 )      3.78        2.39        (6.84 )      0.72   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      1.27        (1.80 )      4.31        2.82        (6.43 )      1.19   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Less distributions from:

             

Net investment income

      (0.38 )      (0.57 )      (0.52 )      (0.42 )      (0.42 )      (0.51 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (0.38 )      (0.57 )      (0.52 )      (0.42 )      (0.42 )      (0.51 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of period

    $ 28.41      $ 27.52      $ 29.89      $ 26.10      $ 23.70      $ 30.55   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return

      4.60 %c      (5.87 )%      16.50 %      11.91 %      (20.51 )%      3.88 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios/Supplemental data:

             

Net assets, end of period (000s)

    $ 4,722,343      $ 4,254,544      $ 5,092,547      $ 3,447,242      $ 2,393,638      $ 2,071,061   

Ratio of expenses to average net assetsd,e

      0.51 %      0.53 %      0.52 %      0.53 %      0.55 %      0.52 % 

Ratio of net investment income to average net assetsd

      1.96 %      1.94 %      1.70 %      1.63 %      2.00 %      1.46 % 

Portfolio turnover ratef

      3 %      5 %      8 %      6 %      6 %      11 % 

 

a 

Based on average shares outstanding throughout each period.

b 

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.

c 

Not annualized.

d 

Annualized for periods of less than one year.

e 

Ratios for the years ended August 31, 2010 and prior have been recalculated, as necessary, to conform with the current presentation of foreign taxes.

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.

 

56    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Financial Highlights (Continued)

iSHARES®, INC.

(For a share outstanding throughout each period)

 

     iShares MSCI Chile Capped Investable Market Index Fund  
     

Six months
ended

Feb. 28, 2013
(Unaudited)

     Year ended
Aug. 31, 2012		     Year ended
Aug. 31, 2011		     Year ended
Aug. 31, 2010		     Year ended
Aug. 31, 2009		    

Period from
Nov. 12, 2007a

to

Aug. 31, 2008

  

Net asset value, beginning of period

    $ 60.31      $ 67.11      $ 67.37      $ 44.61      $ 44.80      $ 48.84   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income from investment operations:

             

Net investment incomeb

      0.06        0.97        0.95        0.59        0.76        0.92   

Net realized and unrealized gain (loss)c

      6.19        (6.80 )      (0.23 )      22.86        (0.42 )      (4.38 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      6.25        (5.83 )      0.72        23.45        0.34        (3.46 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Less distributions from:

             

Net investment income

      (0.09 )      (0.92 )      (0.98 )      (0.66 )      (0.53 )      (0.58 ) 

Return of capital

      —        (0.05 )      (0.00 )d      (0.03 )      —        —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (0.09 )      (0.97 )      (0.98 )      (0.69 )      (0.53 )      (0.58 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of period

    $ 66.47      $ 60.31      $ 67.11      $ 67.37      $ 44.61      $ 44.80   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return

      10.37 %e      (8.68 )%      0.93 %      52.88 %      0.89 %      (7.15 )%e 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios/Supplemental data:

             

Net assets, end of period (000s)

    $ 634,775      $ 548,797      $ 708,018      $ 670,350      $ 263,205      $ 76,158   

Ratio of expenses to average net assetsf

      0.60 %      0.61 %      0.59 %      0.61 %      0.65 %      0.63 % 

Ratio of net investment income to average net assetsf

      0.20 %      1.55 %      1.30 %      1.05 %      1.98 %      2.38 % 

Portfolio turnover rateg

      15 %      48 %      38 %      42 %      53 %      16 % 

 

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 

Rounds to less than $0.01.

e 

Not annualized.

f 

Annualized for periods of less than one year.

g 

Portfolio turnover rates include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S.dollars. Excluding such transactions, the portfolio turnover rates for the six months ended February 28, 2013, the years ended August 31, 2012, August 31, 2011, August 31, 2010, August 31, 2009 and the period ended August 31, 2008 were 6%, 20%, 12%, 9%, 14% and 16%, respectively. See Note 4.

See notes to financial statements.

 

FINANCIAL HIGHLIGHTS

      57   

Table of Contents

Financial Highlights (Continued)

iSHARES®, INC.

(For a share outstanding throughout each period)

 

     iShares MSCI Israel Capped Investable Market Index Fund  
     

Six months
ended

Feb. 28, 2013
(Unaudited)

     Year ended
Aug. 31, 2012		     Year ended
Aug. 31, 2011		     Year ended
Aug. 31, 2010		     Year ended
Aug. 31, 2009		    

Period from
Mar. 26, 2008a

to

Aug. 31, 2008

  

Net asset value, beginning of period

    $ 37.25      $ 45.89      $ 49.41      $ 46.87      $ 48.62      $ 50.33   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income from investment operations:

             

Net investment incomeb

      0.38        1.12        1.39        1.40        0.98        0.21   

Net realized and unrealized gain (loss)c

      6.44        (8.66 )      (3.18 )      2.63        (1.75 )      (1.92 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      6.82        (7.54 )      (1.79 )      4.03        (0.77 )      (1.71 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Less distributions from:

             

Net investment income

      (0.53 )      (1.07 )      (1.73 )      (1.49 )      (0.98 )      —   

Return of capital

      —        (0.03 )      —        —        —        —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (0.53 )      (1.10 )      (1.73 )      (1.49 )      (0.98 )      —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of period

    $ 43.54      $ 37.25      $ 45.89      $ 49.41      $ 46.87      $ 48.62   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return

      18.35 %d      (16.52 )%      (4.26 )%      8.57 %      (0.63 )%      (3.40 )%d 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios/Supplemental data:

             

Net assets, end of period (000s)

    $ 80,554      $ 68,912      $ 78,018      $ 128,473      $ 107,792      $ 204,201   

Ratio of expenses to average net assetse

      0.60 %      0.61 %      0.59 %      0.61 %      0.66 %      0.63 % 

Ratio of net investment income to average net assetse

      1.83 %      2.75 %      2.49 %      2.64 %      2.66 %      0.93 % 

Portfolio turnover ratef

      8 %      20 %      17 %      21 %      27 %      8 % 

 

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.

 

58    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Financial Highlights (Continued)

iSHARES®, INC.

(For a share outstanding throughout each period)

 

     iShares MSCI Mexico Capped Investable Market Index Fund  
     

Six months
ended

Feb. 28, 2013
(Unaudited)

    

Year ended

Aug. 31, 2012

    

Year ended

Aug. 31, 2011

    

Year ended

Aug. 31, 2010

     Year ended
Aug. 31, 2009		     Year ended
Aug. 31, 2008		  

Net asset value, beginning of period

    $ 60.96      $ 58.39      $ 48.17      $ 42.59      $ 51.94      $ 58.35   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income from investment operations:

             

Net investment incomea

      0.17        0.73        0.80        0.72        0.43        1.40   

Net realized and unrealized gain (loss)b

      10.41        2.76        10.15        5.61        (9.17 )      (6.21 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      10.58        3.49        10.95        6.33        (8.74 )      (4.81 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Less distributions from:

             

Net investment income

      (0.17 )      (0.92 )      (0.73 )      (0.75 )      (0.61 )      (1.60 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (0.17 )      (0.92 )      (0.73 )      (0.75 )      (0.61 )      (1.60 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of period

    $ 71.37      $ 60.96      $ 58.39      $ 48.17      $ 42.59      $ 51.94   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return

      17.36 %c      6.13 %      22.67 %      14.83 %      (16.50 )%      (8.44 )% 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios/Supplemental data:

             

Net assets, end of period (000s)

    $ 2,369,426      $ 1,182,700      $ 1,243,731      $ 1,450,039      $ 694,278      $ 955,684   

Ratio of expenses to average net assetsd

      0.51 %      0.53 %      0.52 %      0.53 %      0.55 %      0.52 % 

Ratio of net investment income to average net assetsd

      0.49 %      1.26 %      1.35 %      1.46 %      1.25 %      2.42 % 

Portfolio turnover ratee

      11 %      10 %      5 %      11 %      13 %      13 % 

 

a 

Based on average shares outstanding throughout each period.

b 

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.

c 

Not annualized.

d 

Annualized for periods of less than one year.

e 

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.

 

FINANCIAL HIGHLIGHTS

      59   

Table of Contents

Financial Highlights (Continued)

iSHARES®, INC.

(For a share outstanding throughout each period)

 

     iShares MSCI South Africa Index Fund  
     

Six months
ended

Feb. 28, 2013
(Unaudited)

     Year ended
Aug. 31, 2012		     Year ended
Aug. 31, 2011		     Year ended
Aug. 31, 2010		     Year ended
Aug. 31, 2009		     Year ended
Aug. 31, 2008a		  

Net asset value, beginning of period

    $ 64.65      $ 69.06      $ 58.74      $ 51.99      $ 55.80      $ 62.26   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income from investment operations:

             

Net investment incomeb

      0.66        2.10        1.65        1.18        1.94        2.28   

Net realized and unrealized gain (loss)c

      0.68        (4.41 )      11.08        6.92        (3.84 )      (6.02 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      1.34        (2.31 )      12.73        8.10        (1.90 )      (3.74 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Less distributions from:

             

Net investment income

      (1.12 )      (2.10 )      (2.41 )      (1.35 )      (1.91 )      (2.72 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (1.12 )      (2.10 )      (2.41 )      (1.35 )      (1.91 )      (2.72 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of period

    $ 64.87      $ 64.65      $ 69.06      $ 58.74      $ 51.99      $ 55.80   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return

      1.99 %d      (3.17 )%      21.58 %      15.80 %      (2.23 )%      (6.18 )% 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios/Supplemental data:

             

Net assets, end of period (000s)

    $ 506,011      $ 471,922      $ 504,102      $ 505,191      $ 488,728      $ 429,655   

Ratio of expenses to average net assetse

      0.60 %      0.61 %      0.59 %      0.61 %      0.66 %      0.63 % 

Ratio of net investment income to average net assetse

      2.01 %      3.26 %      2.38 %      2.09 %      4.81 %      3.61 % 

Portfolio turnover ratef

      1 %      4 %      4 %      5 %      16 %      21 % 

 

a 

Per share amounts were adjusted to reflect a two-for-one stock split effective July 24, 2008.

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.

 

60    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Financial Highlights (Continued)

iSHARES®, INC.

(For a share outstanding throughout each period)

 

     iShares MSCI Turkey Investable Market Index Fund  
     

Six months
ended

Feb. 28, 2013
(Unaudited)

     Year ended
Aug. 31, 2012		     Year ended
Aug. 31, 2011		     Year ended
Aug. 31, 2010		     Year ended
Aug. 31, 2009		    

Period from
Mar. 26, 2008a

to

Aug. 31, 2008

  

Net asset value, beginning of period

    $ 56.13      $ 47.73      $ 60.81      $ 48.01      $ 52.42      $ 50.30   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income from investment operations:

             

Net investment income (loss)b

      (0.13 )      0.86        0.84        1.00        0.78        0.83   

Net realized and unrealized gain (loss)c

      10.33        8.70        (12.59 )      13.02        (4.22 )      1.29   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      10.20        9.56        (11.75 )      14.02        (3.44 )      2.12   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Less distributions from:

             

Net investment income

      —        (1.16 )      (1.33 )      (1.22 )      (0.97 )      —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      —        (1.16 )      (1.33 )      (1.22 )      (0.97 )      —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of period

    $ 66.33      $ 56.13      $ 47.73      $ 60.81      $ 48.01      $ 52.42   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return

      18.17 %d      20.37 %      (19.74 )%      29.55 %      (5.56 )%      4.22 %d 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios/Supplemental data:

             

Net assets, end of period (000s)

    $ 805,937      $ 561,284      $ 448,677      $ 601,988      $ 242,435      $ 152,021   

Ratio of expenses to average net assetse

      0.60 %      0.61 %      0.59 %      0.61 %      0.65 %      0.63 % 

Ratio of net investment income (loss) to average net assetse

      (0.42 )%      1.75 %      1.30 %      1.81 %      2.39 %      3.78 % 

Portfolio turnover ratef

      4 %      9 %      12 %      13 %      16 %      27 % 

 

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.

 

FINANCIAL HIGHLIGHTS

      61   

Table of Contents

Financial Highlights (Continued)

iSHARES®, INC.

(For a share outstanding throughout each period)

 

     iShares MSCI USA Index Fund  
     

Six months
ended

Feb. 28, 2013
(Unaudited)

     Year ended
Aug. 31, 2012		     Year ended
Aug. 31, 2011		    

Period from
May 5, 2010a

to

Aug. 31, 2010

  

Net asset value, beginning of period

    $ 30.31      $ 26.17      $ 22.44      $ 24.83   
  

 

 

    

 

 

    

 

 

    

 

 

  

Income from investment operations:

         

Net investment incomeb

      0.36        0.59        0.51        0.17   

Net realized and unrealized gain (loss)c

      2.36        3.94        3.73        (2.49 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      2.72        4.53        4.24        (2.32 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Less distributions from:

         

Net investment income

      (0.37 )      (0.39 )      (0.51 )      (0.07 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (0.37 )      (0.39 )      (0.51 )      (0.07 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of period

    $ 32.66      $ 30.31      $ 26.17      $ 22.44   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total return

      9.03 %d      17.44 %      18.89 %      (9.37 )%d 
  

 

 

    

 

 

    

 

 

    

 

 

  

Ratios/Supplemental data:

         

Net assets, end of period (000s)

    $ 153,481      $ 145,470      $ 5,233      $ 2,244   

Ratio of expenses to average net assetse

      0.15 %      0.15 %      0.15 %      0.15 % 

Ratio of net investment income to average net assetse

      2.34 %      2.04 %      1.90 %      2.21 % 

Portfolio turnover ratef

      2 %      6 %      8 %      1 % 

 

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.

 

62    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

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 MSCI Index Fund    Diversification
Classification		  

Brazil Cappeda

      Non-diversified   

Canada

      Diversified   

Chile Capped Investable Marketb

      Non-diversified   

Israel Capped Investable Market

      Non-diversified   
iShares MSCI Index Fund    Diversification
Classification		  

Mexico Capped Investable Marketc

      Non-diversified   

South Africa

      Non-diversified   

Turkey Investable Market

      Non-diversified   

USA

      Non-diversified   
 

 

  a   

Formerly the iShares MSCI Brazil Index Fund

  b   

Formerly the iShares MSCI Chile Investable Market Index Fund

  c   

Formerly the iShares MSCI Mexico Investable Market Index Fund

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.

Certain Funds 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

      63   

Table of Contents

Notes to Financial Statements (Unaudited) (Continued)

iSHARES®, INC.

 

SECURITY VALUATION

Each Fund’s investments are valued at fair value each day that the Fund’s listing exchange is open. 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 BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) provides oversight of the valuation of investments for the Funds. The investments of each Fund are valued pursuant to policies and procedures developed by the Global Valuation Committee and approved by the Board of Directors of the Company (the “Board”).

 

  •  

Equity investments traded on a recognized securities exchange are valued at that day’s last reported trade price or the official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price.

 

  •  

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

 

  •  

Financial futures contracts are valued at that day’s last reported settlement price on the exchange where the contract is traded.

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 deemed relevant by the Global Valuation Committee, in accordance with policies approved by the Board. These factors include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other factors, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or other default rates. Valuations based on such factors are reported to the Board on a quarterly basis.

The Global Valuation Committee employs various methods for calibrating valuation approaches for investments where an active market does not exist, including regular due diligence of the Company’s pricing vendors, a regular review of key inputs and assumptions, transactional back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing or stale prices and large movements in market values, and reviews of market related activity.

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 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. 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

 

64    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Notes to Financial Statements (Unaudited) (Continued)

iSHARES®, INC.

 

 

(such as exchange rates, financing terms, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; 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. In accordance with the Company’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period.

The following table summarizes the value of each of the Funds’ investments according to the fair value hierarchy as of February 28, 2013. The breakdown of each Fund’s investments into major categories is disclosed in its respective schedule of investments.

 

iShares MSCI Index Fund and
Investment Type

 

    Investments  
   Level 1      Level 2     Level 3      Total  

Brazil Capped

           

Assets:

           

Common Stocks

    $ 4,252,853,728       $ —      $ —       $ 4,252,853,728   

Preferred Stocks

      4,065,395,657         —        —         4,065,395,657   

Rights

      —         0 a      —         0 a 

Money Market Funds

      811,745         —        —         811,745   
  

 

 

     

 

 

    

 

 

     

 

 

  
   $ 8,319,061,130       $ 0 a    $ —       $ 8,319,061,130   
  

 

 

     

 

 

    

 

 

     

 

 

  

Canada

           

Assets:

           

Common Stocks

    $ 4,757,053,348       $ —      $ 8       $ 4,757,053,356   

Money Market Funds

      52,643,979         —        —         52,643,979   

Futures Contractsb

      758,309         —        —         758,309   
  

 

 

     

 

 

    

 

 

     

 

 

  
   $ 4,810,455,636       $ —      $ 8       $ 4,810,455,644   
  

 

 

     

 

 

    

 

 

     

 

 

  

Chile Capped Investable Market

           

Assets:

           

Common Stocks

    $ 569,721,164       $ —      $ —       $ 569,721,164   

Preferred Stocks

      43,382,924         —        —         43,382,924   

Rights

      1,172,936         —        —         1,172,936   

Money Market Funds

      19,603,844         —        —         19,603,844   
  

 

 

     

 

 

    

 

 

     

 

 

  
   $ 633,880,868       $ —      $ —       $ 633,880,868   
  

 

 

     

 

 

    

 

 

     

 

 

  
                                    

 

NOTES TO FINANCIAL STATEMENTS

      65   

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Notes to Financial Statements (Unaudited) (Continued)

iSHARES®, INC.

 

iShares MSCI Index Fund and
Investment Type

 

    Investments  
   Level 1      Level 2      Level 3      Total  

Israel Capped Investable Market

            

Assets:

            

Common Stocks

    $ 80,362,653       $ —       $ —       $ 80,362,653   

Money Market Funds

      777,345         —         —         777,345   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 81,139,998       $ —       $ —       $ 81,139,998   
  

 

 

     

 

 

     

 

 

     

 

 

  

Mexico Capped Investable Market

            

Assets:

            

Common Stocks

    $ 2,364,179,774       $ —       $ —       $ 2,364,179,774   

Money Market Funds

      41,018,664         —         —         41,018,664   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 2,405,198,438       $ —       $ —       $ 2,405,198,438   
  

 

 

     

 

 

     

 

 

     

 

 

  

South Africa

            

Assets:

            

Common Stocks

    $ 505,634,924       $ —       $ —       $ 505,634,924   

Money Market Funds

      5,215,141         —         —         5,215,141   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 510,850,065       $ —       $ —       $ 510,850,065   
  

 

 

     

 

 

     

 

 

     

 

 

  

Turkey Investable Market

            

Assets:

            

Common Stocks

    $ 805,739,007       $ —       $ —       $ 805,739,007   

Money Market Funds

      23,506,698         —         —         23,506,698   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 829,245,705       $ —       $ —       $ 829,245,705   
  

 

 

     

 

 

     

 

 

     

 

 

  

USA

            

Assets:

            

Common Stocks

    $ 153,014,883       $ —       $ —       $ 153,014,883   

Money Market Funds

      2,837,445         —         —         2,837,445   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 155,852,328       $ —       $  —       $ 155,852,328   
  

 

 

     

 

 

     

 

 

     

 

 

  
                                     

 

  a   

Rounds to less than $1.

  b   

Futures contracts are shown at the net unrealized appreciation (depreciation) on the contracts.

SECURITY TRANSACTIONS AND INCOME RECOGNITION

Security transactions are accounted for on trade date. Dividend income is recognized on the ex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities as of February 28, 2013 are reflected in dividends receivable. Non-cash dividends received in the form of stock in an elective dividend, if any, are recorded as dividend income at fair value. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. Interest income is accrued daily. Realized gains and losses on investment transactions are determined using the specific identification method.

 

66    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

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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, stock dividends, capital gains on investments, or certain foreign currency transactions. 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 stock dividends are presented as “other foreign taxes,” and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable as of February 28, 2013, 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 December 2011, the Financial Accounting Standards Board issued guidance to enhance current disclosure requirements on offsetting of certain assets and liabilities and enable financial statement users to compare financial statements prepared under U.S. GAAP and International Financial Reporting Standards (IFRS). The new disclosures are required for investments and derivative financial instruments subject to master netting agreements or similar agreements and require an entity to disclose both gross and net information about such investments and transactions eligible for offset in the statement of assets and liabilities. In addition, the standard requires disclosure of collateral received and posted in connection with master netting agreements or similar agreements. The guidance is effective for financial

 

NOTES TO FINANCIAL STATEMENTS

      67   

Table of Contents

Notes to Financial Statements (Unaudited) (Continued)

iSHARES®, INC.

 

statements for fiscal years beginning after January 1, 2013, and interim periods within those fiscal years. Management is evaluating the impact of this guidance on the Funds’ financial statements and disclosures.

 

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.

For its investment advisory services to each of the iShares MSCI Canada and iShares MSCI Mexico Capped Investable Market Index Funds, BFA is entitled to an annual investment advisory fee based on each Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:

 

Investment Advisory Fee      Aggregate Average Daily Net Assets
    0.59 %     

First $7 billion

    0.54       

Over $7 billion, up to and including $11 billion

    0.49       

Over $11 billion, up to and including $24 billion

    0.44       

Over $24 billion, up to and including $48 billion

    0.40       

Over $48 billion

For its investment advisory services to each of the iShares MSCI Brazil Capped, iShares MSCI Chile Capped Investable Market, iShares MSCI Israel Capped Investable Market, iShares MSCI South Africa and iShares MSCI Turkey Investable Market Index Funds, BFA is entitled to an annual investment advisory fee based on each Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:

 

Investment Advisory Fee      Aggregate Average Daily Net Assets
    0.74 %     

First $2 billion

    0.69       

Over $2 billion, up to and including $4 billion

    0.64       

Over $4 billion, up to and including $8 billion

    0.57       

Over $8 billion, up to and including $16 billion

    0.51       

Over $16 billion, up to and including $32 billion

    0.45       

Over $32 billion

For its investment advisory services to the iShares MSCI USA Index Fund, BFA is entitled to an annual investment advisory fee of 0.15% based on the average daily net assets of the Fund.

The U.S. Securities and Exchange Commission has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”) to serve as securities lending agent for the Funds, subject to applicable conditions. BTC is an affiliate of BFA. Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, and any fees or other payments to and from borrowers of securities. Each Fund retains 65% of securities lending income and pays a fee to BTC equal to 35% of such income. The Funds benefit from a borrower default indemnity provided by BlackRock. As securities lending agent, BTC bears all operational costs directly related to securities lending as well as the cost of borrower default indemnification. BTC is also responsible for fees and expenses incurred by each Fund as a result of the investment of cash collateral received for securities on loan in a money market fund managed by BFA or an affiliate.

 

68    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

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Notes to Financial Statements (Unaudited) (Continued)

iSHARES®, INC.

 

For the six months ended February 28, 2013, BTC earned securities lending agent fees from the Funds as follows:

 

iShares MSCI Index Fund    Securities Lending
Agent Fees		  

Brazil Capped

    $ 23   

Canada

      206,674   

Israel Capped Investable Market

      42,639   

Mexico Capped Investable Market

      60,635   

South Africa

      24,820   

Turkey Investable Market

      199,035   

USA

      2,862   

BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the 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.

The PNC Financial Services Group, Inc. is the largest stockholder of BlackRock and is considered to be an affiliate of the Funds for 1940 Act purposes.

Investments in issuers considered to be affiliates of the Funds (excluding short-term investments) during the six months ended February 28, 2013, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

 

iShares MSCI Index Fund and

Name of Affiliated Issuer

   

Shares Held

at Beginning

of Period

      Shares
Purchased		      Shares
Sold		    

Shares Held
at End

of Period

     

Value at

End
of Period

     

Dividend

Income

     

Net

Realized

Gain (Loss)

  

USA

                    

BlackRock Inc.

      1,445         251         (239 )      1,457       $ 349,316       $ 2,169       $ 8,576   

PNC Financial Services Group Inc. (The)

      5,825         861         (1,004 )      5,682         354,500         4,698         6,704   
             

 

 

     

 

 

     

 

 

  
              $ 703,816       $ 6,867       $ 15,280   
             

 

 

     

 

 

     

 

 

  
                                                               

Certain directors and officers of the Company are also officers of BTC and/or BFA.

 

NOTES TO FINANCIAL STATEMENTS

      69   

Table of Contents

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 six months ended February 28, 2013 were as follows:

 

iShares MSCI Index Fund    Purchases      Sales  

Brazil Capped

    $ 2,446,248,186       $ 1,777,473,288   

Canada

      178,732,081         152,060,330   

Chile Capped Investable Market

      94,983,125         84,241,241   

Israel Capped Investable Market

      6,249,963         6,462,245   

Mexico Capped Investable Market

      185,306,189         187,484,554   

South Africa

      9,558,272         5,141,406   

Turkey Investable Market

      26,807,349         28,302,289   

USA

      3,719,891         3,853,263   

In-kind transactions (see Note 4) for the six months ended February 28, 2013 were as follows:

 

iShares MSCI Index Fund    In-kind
Purchases		      In-kind
Sales		  

Brazil Capped

    $ —       $ 59,296,000   

Canada

      610,848,593            279,938,820   

Israel Capped Investable Market

      4,044,766         4,273,589   

Mexico Capped Investable Market

      1,071,142,115         103,476,731   

South Africa

      78,993,780         53,834,723   

Turkey Investable Market

      215,028,633         75,647,281   

USA

      18,788,623         22,026,092   

 

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 may also 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.

 

70    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

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Notes to Financial Statements (Unaudited) (Continued)

iSHARES®, INC.

 

5. LOANS OF PORTFOLIO SECURITIES

Each Fund may lend its investment securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter, at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Funds and any additional required collateral is delivered to the Funds on the next business day. The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Funds benefit from a borrower default indemnity provided by BlackRock. BlackRock’s indemnity allows for full replacement of securities lent. Any securities lending cash collateral may be reinvested in certain short-term instruments either directly on behalf of a fund or through one or more joint accounts or money market funds, including those managed by BFA or its affiliates. Each Fund could suffer a loss if the value of an investment purchased with cash collateral falls below the value of the cash collateral received.

As of February 28, 2013, any securities on loan were collateralized by cash. The cash collateral received was invested in money market funds managed by BFA. The value of any securities on loan as of February 28, 2013 and the value of the related collateral are disclosed in the statements of assets and liabilities. Securities lending income, as disclosed in the statements of operations, represents the income earned from the investment of the cash collateral, net of fees and other payments to and from borrowers, and less the fees paid to BTC as securities lending agent.

 

6. 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.

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

 

NOTES TO FINANCIAL STATEMENTS

      71   

Table of Contents

Notes to Financial Statements (Unaudited) (Continued)

iSHARES®, INC.

 

As of August 31, 2012, the Funds’ fiscal year-end, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:

 

iShares MSCI
Index Fund		   Non-
Expiringa		     Expiring
2013		     Expiring
2014		     Expiring
2015		     Expiring
2016		     Expiring
2017		     Expiring
2018		     Expiring
2019		     Total  

Brazil Capped

   $ 160,031,183      $ —      $ —      $ —      $ —      $ —      $ 198,226,310      $ —      $ 358,257,493   

Canada

     31,451,368        2,931,648        —        5,363,291        5,107,471        27,886,883        68,928,677        14,903,919        156,573,257   

Chile Capped Investable Market

     30,504,831        —        —        —        —        1,886,881        11,712,090        976,991        45,080,793   

Israel Capped Investable Market

     3,141,756        —        —        —        —        784,479        10,801,191        7,130,249        21,857,675   

Mexico Capped Investable Market

     6,596,203        12,912        632,766        —        853,150        8,973,988        2,789,471        22,863,665        42,722,155   

South Africa

     5,013,197        —        260,738        1,607,845        972,024        15,339,464        14,856,365        6,137,142        44,186,775   

Turkey Investable Market

     4,821,444        —        —        —        —        720,636        5,982,737        3,859,184        15,384,001   

USA

     2,724        —        —        —        —        —        —        —        2,724   

 

  a   

Must be utilized prior to losses subject to expiration.

The Funds may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” The Funds may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.

As of February 28, 2013, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

 

iShares MSCI Index Fund    Tax Cost      Gross
Unrealized
Appreciation		      Gross
Unrealized
Depreciation		     Net Unrealized
Appreciation
(Depreciation)		  

Brazil Capped

    $ 6,402,129,337       $ 2,829,891,154       $ (912,959,361 )    $ 1,916,931,793   

Canada

      5,269,052,422         423,962,851         (883,317,938 )      (459,355,087 ) 

Chile Capped Investable Market

      460,847,952         201,208,729         (28,175,813 )      173,032,916   

Israel Capped Investable Market

      103,372,864         3,171,604         (25,404,470 )      (22,232,866 ) 

Mexico Capped Investable Market

      2,282,996,729         273,653,046         (151,451,337 )      122,201,709   

South Africa

      553,995,333         54,326,317         (97,471,585 )      (43,145,268 ) 

Turkey Investable Market

      793,009,469         69,721,418         (33,485,182 )      36,236,236   

USA

      134,035,344         23,973,007         (2,156,023 )      21,816,984   

Management has reviewed the tax positions as of February 28, 2013, inclusive of the open tax return years, and has determined that no provision for income tax is required in the Funds’ financial statements.

 

72    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

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Notes to Financial Statements (Unaudited) (Continued)

iSHARES®, INC.

 

7. FINANCIAL FUTURES CONTRACTS

Each Fund may purchase or sell financial futures contracts in an effort to help such Fund track its underlying index. A futures contract is a standardized, exchange-traded agreement to buy and sell a financial instrument at a set price on a future date. Upon entering into a futures contract, the Fund is required to pledge to the executing broker which holds segregated from its own assets, an amount of cash, U.S. government securities or other high-quality debt and equity securities equal to the minimum initial margin requirements of the exchange on which the contract is traded. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as margin variation and are recorded by the Fund as unrealized appreciation or depreciation. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Losses may arise if the value of a futures contract decreases due to an unfavorable change in the market rates or values of the underlying instrument during the term of the contract or if the counterparty does not perform under the contract. The use of futures contracts also involves the risk of an imperfect correlation in the movements in the price of futures contracts and the assets underlying such contracts.

The following table shows the value of futures contracts held by the iShares MSCI Canada Index Fund as of February 28, 2013 and the related locations in the statements of assets and liabilities, presented by risk exposure category:

 

Assets  

Equity contracts:

   

Variation margin/Net assets consist of –
net unrealized appreciation (depreciation)a

    $ 758,309   
  

 

 

  
          

 

  a   

Represents cumulative appreciation of futures contracts as reported in the schedule of investments.

The following table shows the realized and unrealized gains (losses) on futures contracts held by the iShares MSCI Canada Index Fund during the six months ended February 28, 2013 and the related locations in the statements of operations, presented by risk exposure category:

 

      Net Realized
Gain (Loss)		      Net Change in  Unrealized
Appreciation/Depreciation		  

Equity contracts:

      

Futures contracts

    $ 234,177       $ 803,280   
  

 

 

     

 

 

  
                   

For the six months ended February 28, 2013, the average quarter-end number of contracts and notional value of open futures contracts for the iShares MSCI Canada Index Fund were 86 and $12,204,723, respectively.

 

8. 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

      73   

Table of Contents

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 MSCI Index 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		  

Brazil Capped

    $ 0.30346       $ —       $ 0.20767       $ 0.51113         59 %      —   %      41 %      100 % 

Canada

      0.29591         —         0.08083         0.37674         79        —          21        100   

Chile Capped Investable Market

      0.07678         —         0.01106         0.08784         87        —          13        100   

Israel Capped Investable Market

      0.34382         —         0.19066         0.53448         64        —          36        100   

South Africa

      0.89338         —         0.23149         1.12487         79        —          21        100   

USA

      0.34533         —         0.02021         0.36554         94        —          6        100   

 

74    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents
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 MSCI Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.

A description of the policies that the Funds use 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.

 

©2013 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.

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iS-SAR-84-0213

Table of Contents

FEBRUARY 28, 2013

 

 

2013 SEMI-ANNUAL REPORT (UNAUDITED)

 

     LOGO

 

iShares, Inc.

 

Ø    

iShares MSCI Emerging Markets Index Fund  |  EEM  |  NYSE Arca

Table of Contents

Table of Contents

 

Fund Performance Overview

      5   

Shareholder Expenses

      7   

Consolidated Schedule of Investments

      8   

Consolidated Financial Statements

      23   

Financial Highlights

      26   

Notes to Consolidated Financial Statements

      27   

Supplemental Information

      36   

Table of Contents

Fund Performance Overview

iSHARES® MSCI EMERGING MARKETS INDEX FUND

Performance as of February 28, 2013

 

Average Annual Total Returns
Year Ended 2/28/13   Five Years Ended 2/28/13   Inception to 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
(0.38)%   (0.71)%   0.28%   0.24%   0.37%   0.34%   16.39%   16.30%   16.80%
Cumulative Total Returns
Year Ended 2/28/13   Five Years Ended 2/28/13   Inception to 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
(0.38)%   (0.71)%   0.28%   1.23%   1.87%   1.73%   348.96%   345.63%   364.86%

Total returns for the period since inception are calculated from the inception date of the Fund (4/7/03). “Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

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 (4/11/03), 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.

 

FUND PERFORMANCE OVERVIEW

      5   

Table of Contents

Fund Performance Overview (Continued)

iSHARES® MSCI EMERGING MARKETS INDEX FUND

 

The iShares MSCI Emerging Markets Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI Emerging Markets IndexSM (the “Index”). The Index is designed to measure equity market performance in the global emerging markets. 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 February 28, 2013, the total return for the Fund was 11.62%, net of fees, while the total return for the Index was 12.06%.

 

PORTFOLIO ALLOCATION

As of 2/28/13

 

Sector    Percentage of
Net Assets

Financial

      26.78 % 

Energy

      11.14   

Technology

      10.27   

Communications

      10.25   

Basic Materials

      10.18   

Consumer Non-Cyclical

      9.78   

Consumer Cyclical

      8.64   

Industrial

      6.81   

Utilities

      3.31   

Diversified

      2.47   

Short-Term and Other Net Assets

      0.37   
  

 

 

  

TOTAL

      100.00 % 
  

 

 

  

 

TEN LARGEST FUND HOLDINGS

As of 2/28/13

 

Security    Percentage of
Net Assets

Samsung Electronics Co. Ltd. (South Korea)

      4.09 % 

Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan)

      2.24   

China Mobile Ltd. (China)

      1.75   

China Construction Bank Corp. Class H (China)

      1.54   

Gazprom OAO (Russia)

      1.23   

Industrial and Commercial Bank of China Ltd. Class H (China)

      1.20   

America Movil SAB de CV Series L (Mexico)

      1.08   

Itau Unibanco Holding SA (Preferred) (Brazil)

      1.04   

Vale SA Class A (Preferred) (Brazil)

      0.97   

Sberbank of Russia (Russia)

      0.94   
  

 

 

  

TOTAL

      16.08 % 
  

 

 

  
 

 

6    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Shareholder Expenses (Unaudited)

iSHARES® MSCI EMERGING MARKETS INDEX FUND

 

As a shareholder of the 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 the 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 September 1, 2012 to February 28, 2013.

ACTUAL EXPENSES

The first line 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 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 in the table below provides information about hypothetical account values and hypothetical expenses based on the 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 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.

 

      Beginning
Account Value
(9/1/12)		      Ending
Account Value
(2/28/13)		      Annualized
Expense Ratio		     Expenses Paid
During Period a		  

Actual

    $ 1,000.00       $ 1,116.20         0.67 %    $ 3.52   

Hypothetical (5% return before expenses)

      1,000.00         1,021.50         0.67        3.36   

 

a 

Expenses 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 (181 days) and divided by the number of days in the year (365 days).

 

 

SHAREHOLDER EXPENSES

      7   

Table of Contents

Consolidated Schedule of Investments (Unaudited)

iSHARES® MSCI EMERGING MARKETS INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

COMMON STOCKS — 92.06%

  

BRAZIL — 6.14%

    

ALL-America Latina Logistica SA

     5,937,200      $ 29,429,245   

Amil Participacoes SA

     1,735,300        27,498,330   

Anhanguera Educacional Participacoes SA

     1,481,900        30,730,818   

Arteris SA

     1,580,500        17,027,287   

Banco Bradesco SA

     7,163,800        127,615,718   

Banco do Brasil SA

     7,668,274        102,160,911   

Banco Santander (Brasil) SA Units

     9,728,680        70,759,404   

BM&F Bovespa SA

     24,202,500        164,157,364   

BR Malls Participacoes SA

     5,453,700        70,615,912   

BR Properties SA

     2,055,500        25,575,489   

BRF-Brasil Foods SA

     8,613,585        187,119,253   

CCR SA

     11,973,900        120,217,447   

Centrais Eletricas Brasileiras SA

     3,456,637        12,150,942   

CETIP SA-Mercados Organizados

     2,601,403        31,446,832   

Cielo SA

     4,007,952        120,475,741   

Companhia de Bebidas das Americas

     1,710,100        75,501,810   

Companhia de Saneamento Basico do Estado de Sao Pauloa

     1,735,808        84,257,495   

Companhia de Saneamento de Minas Gerais SA

     439,400        11,401,153   

Companhia Hering SA

     1,725,900        33,529,826   

Companhia Siderurgica Nacional SA

     9,616,728        48,640,575   

Cosan SA Industria e Comercio

     1,616,900        38,159,200   

CPFL Energia SA

     2,804,736        28,627,572   

Cyrela Brazil Realty SA Empreendimentos e Participacoes

     3,980,500        35,031,460   

Diagnosticos da America SA

     3,136,900        21,657,319   

Duratex SA

     4,110,180        34,405,685   

EcoRodovias Infraestrutura e Logistica SA

     2,458,800        21,353,293   

EDP Energias do Brasil SA

     3,523,600        21,404,297   

Embraer SA

     7,345,800        62,122,187   

Fibria Celulose SAa

     3,337,361        37,862,024   

Hypermarcas SAa

     4,050,400        35,831,013   
Security   Shares     Value  
   

JBS SAa

     6,579,565      $ 22,829,304   

Kroton Educacional SAa

     969,000        25,387,790   

Light SA

     911,800        8,900,784   

Localiza Rent A Car SA

     1,482,400        28,146,930   

Lojas Americanas SA

     1,208,700        10,515,219   

Lojas Renner SA

     1,610,700        61,394,139   

MPX Energia SAa

     1,229,100        6,533,732   

MRV Engenharia e Participacoes SA

     3,774,400        24,245,046   

Multiplan Empreendimentos Imobiliarios SA

     838,700        24,031,336   

Multiplus SA

     450,900        8,404,059   

Natura Cosmeticos SA

     2,343,900        60,580,289   

Odontoprev SA

     4,244,800        19,666,364   

OGX Petroleo e Gas Participacoes SAa

     17,088,000        27,225,330   

Oi SA

     1,910,508        8,165,390   

PDG Realty SA Empreendimentos e Participacoes

     14,892,500        24,179,316   

Petroleo Brasileiro SA

     38,741,874        283,935,944   

Porto Seguro SA

     1,132,100        15,030,917   

Qualicorp SAa

     1,895,700        21,218,877   

Raia Drogasil SA

     2,237,000        25,819,807   

Souza Cruz SA

     5,005,300        79,974,421   

Sul America SA Units

     1,471,271        14,042,225   

TIM Participacoes SA

     11,497,176        50,301,235   

Totvs SA

     1,450,400        32,094,988   

Tractebel Energia SA

     1,927,600        34,123,717   

Ultrapar Participacoes SA

     4,247,800        110,218,067   

Vale SA

     17,139,948        327,697,150   

WEG SA

     2,486,300        33,312,471   
   

 

 

  
      3,114,740,449   

CHILE — 1.77%

    

AES Gener SA

     17,663,031        12,139,530   

Aguas Andinas SA Series A

     19,228,971        15,444,150   

Banco de Chile

     282,073,342        46,826,381   

Banco de Chile Series Ta

     10,699,024        1,639,740   

Banco de Credito e Inversiones

     349,654        27,188,823   

Banco Santander (Chile) SA

     656,444,115        47,639,206   

Banco Santander (Chile) SA SP ADR

     2,144,567        62,321,117   
 

 

8    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Consolidated Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

CAP SA

     614,156      $ 22,086,506   

Cencosud SA

     11,045,411        69,020,685   

Colbun SAa

     73,967,805        23,237,196   

Compania Cervecerias Unidas SA

     835,982        13,572,403   

CorpBanca SA

     1,435,472,620        21,108,017   

E.CL SA

     7,679,997        17,374,765   

Empresa Nacional de Electricidad SA

     33,933,031        57,674,317   

Empresa Nacional de Electricidad SA SP ADR

     188,769        9,602,679   

Empresa Nacional de Telecomunicaciones SA

     1,042,762        21,999,732   

Empresas CMPC SA

     11,010,257        42,474,618   

Empresas Copec SA

     4,997,407        77,101,945   

Enersis SA

     120,538,866        46,049,644   

Enersis SA SP ADR

     3,176,481        59,050,782   

LATAM Airlines Group SA

     1,365,334        32,559,630   

LATAM Airlines Group SA BDRa

     721,765        16,467,968   

LATAM Airlines Group SA SP ADR

     1,751,149        41,344,628   

S.A.C.I. Falabella SA

     5,289,915        61,736,736   

Sociedad Quimica y Minera de Chile SA Series B SP ADR

     903,006        50,044,593   

Vina Concha y Toro SA

     1,242,990        2,591,662   
   

 

 

  
      898,297,453   

CHINA — 18.48%

    

Agile Property Holdings Ltd.

     19,710,000        25,467,185   

Agricultural Bank of China Ltd. Class H

     273,530,000        141,088,480   

Air China Ltd. Class H

     23,168,000        18,761,812   

Aluminum Corp. of China Ltd. Class Ha,b

     43,822,000        18,930,566   

Angang Steel Co. Ltd. Class Ha,b

     17,433,320        11,734,841   

Anhui Conch Cement Co. Ltd. Class Hb

     16,902,500        61,791,766   

Anta Sports Products Ltd.b

     11,347,402        10,740,366   

AviChina Industry & Technology Co. Ltd. Class H

     23,428,000        10,755,035   

Bank of China Ltd. Class H

     994,882,000        469,547,202   

Bank of Communications Co. Ltd. Class H

     105,297,600        83,370,699   
Security   Shares     Value  
   

BBMG Corp. Class H

     13,484,500      $ 11,876,327   

Beijing Capital International Airport Co. Ltd. Class H

     34,450,000        27,098,525   

Beijing Enterprises Holdings Ltd.b

     7,884,500        60,291,411   

Belle International Holdings Ltd.b

     57,224,000        105,373,891   

Bosideng International Holdings Ltd.b

     26,654,000        8,248,980   

Brilliance China Automotive Holdings Ltd.a

     28,586,000        39,442,439   

BYD Co. Ltd. Class Ha,b

     4,705,000        16,684,720   

China Agri-Industries Holdings Ltd.b

     36,993,600        21,037,386   

China BlueChemical Ltd. Class H

     11,920,000        7,639,400   

China CITIC Bank Corp. Ltd. Class H

     96,155,800        61,749,213   

China Coal Energy Co. Class H

     51,949,000        51,514,576   

China Communications Construction Co. Ltd. Class H

     58,174,000        55,061,950   

China Communications Services Corp. Ltd. Class H

     14,128,000        8,835,864   

China Construction Bank Corp. Class H

     947,864,760        782,263,289   

China COSCO Holdings Co. Ltd. Class Ha,b

     33,486,000        17,963,179   

China Everbright Ltd.b

     21,520,000        39,960,541   

China Foods Ltd.b

     10,666,000        7,028,280   

China Gas Holdings Ltd.

     43,270,000        42,126,992   

China International Marine Containers (Group) Co. Ltd. Class Ha

     922,600        1,929,705   

China Life Insurance Co. Ltd. Class H

     99,987,000        300,418,074   

China Longyuan Power Group Corp. Ltd. Class Hb

     23,739,000        21,642,550   

China Mengniu Dairy Co. Ltd.

     17,855,000        49,847,611   

China Merchants Bank Co. Ltd. Class H

     52,092,042        112,985,828   

China Merchants Holdings (International) Co. Ltd.b

     14,000,000        48,563,157   

China Minsheng Banking Corp. Ltd. Class H

     69,044,700        96,156,955   
 

 

CONSOLIDATED SCHEDULE OF INVESTMENTS

      9   

Table of Contents

Consolidated Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

China Mobile Ltd.

     80,702,500      $ 889,253,645   

China National Building Material Co. Ltd. Class Hb

     37,552,000        57,333,885   

China Oilfield Services Ltd. Class H

     17,866,000        37,921,347   

China Overseas Land & Investment Ltd.

     56,464,960        171,473,311   

China Pacific Insurance (Group) Co. Ltd. Class H

     32,355,400        119,327,188   

China Petroleum & Chemical Corp. Class H

     239,358,000        272,234,480   

China Railway Construction Corp. Ltd. Class Hb

     24,747,000        25,944,165   

China Railway Group Ltd. Class H

     47,159,000        25,601,964   

China Resources Cement Holdings Ltd.b

     27,956,000        17,736,451   

China Resources Enterprise Ltd.

     17,878,000        58,095,979   

China Resources Gas Group Ltd.b

     9,820,000        22,768,152   

China Resources Land Ltd.b

     29,582,000        86,401,710   

China Resources Power Holdings Co. Ltd.

     25,978,999        70,183,179   

China Shanshui Cement Group Ltd.

     24,537,000        17,560,668   

China Shenhua Energy Co. Ltd. Class H

     44,738,000        169,609,625   

China Shipping Container Lines Co. Ltd. Class Ha,b

     50,885,000        15,091,910   

China Shipping Development Co. Ltd. Class Hb

     16,828,000        9,374,386   

China Southern Airlines Co. Ltd. Class H

     15,692,000        8,660,614   

China State Construction International Holdings Ltd.

     18,546,000        26,019,908   

China Taiping Insurance Holdings Co. Ltd.a

     8,724,000        17,414,588   

China Telecom Corp. Ltd. Class H

     170,682,000        88,479,034   

China Unicom (Hong Kong) Ltd.

     65,760,000        94,804,774   

China Vanke Co. Ltd. Class B

     9,457,513        19,208,087   

Chongqing Rural Commercial Bank Co. Ltd. Class Hb

     30,001,000        16,828,739   
Security   Shares     Value  
   

CITIC Pacific Ltd.b

     18,183,000      $ 27,949,136   

CITIC Securities Co. Ltd. Class Hb

     13,763,500        34,715,573   

CNOOC Ltd.

     238,699,000        469,096,470   

COSCO Pacific Ltd.

     18,492,000        29,616,387   

Country Garden Holdings Co. Ltd.a

     54,683,381        28,064,999   

CSR Corp Ltd. Class H

     23,419,000        19,176,470   

Dah Chong Hong Holdings Ltd.b

     10,843,000        11,143,827   

Daphne International Holdings Ltd.b

     11,654,000        14,021,138   

Datang International Power Generation Co. Ltd. Class H

     34,446,000        14,969,086   

Dongfang Electric Corp. Ltd. Class Hb

     6,068,800        11,410,034   

Dongfeng Motor Group Co. Ltd. Class H

     33,668,000        49,319,907   

ENN Energy Holdings Ltd.

     10,736,000        53,923,313   

Evergrande Real Estate Group Ltd.b

     83,082,388        41,033,101   

Far East Horizon Ltd.

     15,875,000        11,688,975   

Fosun International Ltd.

     16,106,000        10,488,314   

Franshion Properties (China) Ltd.b

     30,852,000        10,900,853   

GCL-Poly Energy Holdings Ltd.b

     103,433,000        27,609,343   

Geely Automobile Holdings Ltd.b

     49,030,000        26,997,053   

Golden Eagle Retail Group Ltd.b

     8,113,000        16,655,249   

GOME Electrical Appliances Holdings Ltd.a,b

     124,759,200        13,835,588   

Great Wall Motor Co. Ltd. Class H

     13,109,500        51,306,386   

Greentown China Holdings Ltd.a

     1,159,500        2,239,800   

Guangdong Investment Ltd.b

     37,942,110        32,634,271   

Guangzhou Automobile Group Co. Ltd. Class H

     30,602,742        25,492,913   

Guangzhou R&F Properties Co. Ltd. Class H

     15,607,600        26,486,137   

Haier Electronics Group Co. Ltd.a

     10,832,000        19,555,246   

Haitong Securities Co. Ltd. Class Ha

     11,716,400        19,731,676   

Hengan International Group Co. Ltd.b

     9,397,000        95,365,339   
 

 

10    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Consolidated Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Huabao International Holdings Ltd.b

     21,030,000      $ 11,742,316   

Huaneng Power International Inc. Class H

     50,218,000        51,676,001   

Industrial and Commercial Bank of China Ltd. Class H

     850,728,085        611,044,112   

Inner Mongolia Yitai Coal Co. Ltd. Class B

     5,226,952        30,049,747   

Intime Department Store Group Co. Ltd.b

     12,570,500        15,415,573   

Jiangsu Expressway Co. Ltd. Class H

     12,548,000        12,685,780   

Jiangxi Copper Co. Ltd. Class H

     19,535,000        46,804,297   

Kingboard Chemical Holdings Co. Ltd.b

     6,060,000        18,481,209   

Kunlun Energy Co. Ltd.b

     39,346,000        81,585,547   

Lee & Man Paper Manufacturing Ltd.

     15,925,000        11,931,146   

Lenovo Group Ltd.b

     83,284,000        93,004,950   

Longfor Properties Co. Ltd.b

     21,279,000        37,702,014   

Minmetals Resources Ltd.a

     21,200,000        9,376,842   

New China Life Insurance Co. Ltd. Class H

     2,250,000        8,776,766   

Nine Dragons Paper (Holdings) Ltd.b

     21,338,000        20,306,575   

Parkson Retail Group Ltd.b

     11,273,500        7,326,826   

People’s Insurance Co. Group of China Ltd. Class Ha

     27,663,000        16,230,701   

PetroChina Co. Ltd. Class H

     281,868,000        387,462,411   

PICC Property and Casualty Co. Ltd. Class H

     38,809,200        55,750,206   

Ping An Insurance (Group) Co. of China Ltd. Class H

     24,386,500        204,089,550   

Poly Property Group Co. Ltd.a,b

     28,895,458        20,642,674   

Shandong Weigao Group Medical Polymer Co. Ltd. Class H

     15,192,000        14,124,621   

Shanghai Electric Group Co. Ltd. Class H

     25,356,000        10,299,542   

Shanghai Industrial Holdings Ltd.

     8,635,000        28,171,467   

Shanghai Pharmaceuticals Holding Co. Ltd. Class H

     6,562,900        14,133,146   
Security   Shares     Value  
   

Shimao Property Holdings Ltd.

     21,038,500      $ 42,321,979   

Shougang Fushan Resources Group Ltd.b

     27,384,000        12,076,736   

Shui On Land Ltd.

     66,135,950        30,616,719   

Sihuan Pharmaceutical Holdings Group Ltd.b

     20,999,000        9,748,274   

Sino-Ocean Land Holdings Ltd.b

     64,462,500        44,555,214   

Sinopec Shanghai Petrochemical Co. Ltd. Class H

     42,114,000        18,464,264   

Sinopharm Group Co. Ltd. Class H

     11,850,800        37,440,389   

SOHO China Ltd.b

     38,088,500        29,616,776   

Sun Art Retail Group Ltd.

     26,006,000        36,217,954   

Tencent Holdings Ltd.

     13,500,700        466,919,120   

Tingyi (Cayman Islands) Holding Corp.b

     24,246,000        63,625,486   

Tsingtao Brewery Co. Ltd. Class Hb

     4,146,000        25,956,440   

Uni-President China Holdings Ltd.b

     7,081,000        8,720,162   

Want Want China Holdings Ltd.b

     81,465,000        114,294,822   

Weichai Power Co. Ltd. Class Hb

     4,720,200        17,895,108   

Wumart Stores Inc. Class H

     2,925,750        5,734,656   

Yanzhou Coal Mining Co. Ltd. Class H

     24,954,800        38,679,884   

Yingde Gases Group Co. Ltd.b

     12,020,500        14,074,565   

Yuexiu Property Co. Ltd.

     68,202,000        23,569,941   

Zhaojin Mining Industry Co. Ltd. Class H

     13,109,000        17,276,154   

Zhejiang Expressway Co. Ltd. Class H

     36,686,000        30,796,967   

Zhongsheng Group Holdings Ltd.b

     7,401,000        11,452,446   

Zhuzhou CSR Times Electric Co. Ltd. Class H

     6,070,000        20,077,178   

Zijin Mining Group Co. Ltd. Class H

     84,956,000        29,250,407   

Zoomlion Heavy Industry Science and Technology Co. Ltd. Class Hb

     14,026,440        18,521,409   

ZTE Corp. Class Hb

     8,240,200        14,068,647   
   

 

 

  
      9,381,468,884   
 

 

CONSOLIDATED SCHEDULE OF INVESTMENTS

      11   

Table of Contents

Consolidated Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

COLOMBIA — 0.93%

  

  

Almacenes Exito SA

     2,202,676      $ 42,483,453   

Bancolombia SA

     273,086        4,334,042   

Bancolombia SA SP ADR

     1,310,571        85,108,481   

Cementos Argos SA

     4,022,453        20,614,607   

Corporacion Financiera Colombiana SA

     987,107        19,299,630   

Ecopetrol SA

     62,441,021        179,270,514   

Grupo Argos SA

     2,800,992        35,068,835   

Grupo de Inversiones Suramericana SA

     2,695,532        57,425,857   

Interconexion Electrica SA ESP

     3,572,254        19,291,658   

Isagen SA ESP

     8,329,413        11,727,527   
   

 

 

  
      474,624,604   

CZECH REPUBLIC — 0.27%

  

  

CEZ AS

     2,646,827        79,716,404   

Komercni Banka AS

     253,288        51,530,749   

Telefonica O2 Czech Republic AS

     443,072        7,325,852   
   

 

 

  
      138,573,005   

EGYPT — 0.12%

  

  

Orascom Telecom Holding SAE SP GDRa,c

     18,647,677        58,926,659   
   

 

 

  
      58,926,659   

HUNGARY — 0.23%

  

  

Magyar Telekom Telecommunications PLC

     4,587,444        8,252,272   

MOL Hungarian Oil and Gas PLC

     661,285        50,827,248   

OTP Bank PLC

     2,866,536        59,547,509   
   

 

 

  
      118,627,029   

INDIA — 6.40%

  

  

ACC Ltd.

     662,984        15,507,404   

Adani Enterprises Ltd.

     2,268,603        8,992,266   

Adani Ports and Special Economic Zone Ltd.

     3,584,720        9,135,584   

Aditya Birla Nuvo Ltd.

     163,111        3,011,430   

Ambuja Cements Ltd.

     7,410,317        26,090,363   

Asian Paints Ltd.

     300,368        23,586,659   

Axis Bank Ltd.

     2,982,639        73,690,179   

Axis Bank Ltd. SP GDRc

     426,312        10,636,484   

Bajaj Auto Ltd.

     936,905        33,976,906   

Bank of Baroda

     985,960        12,606,986   
Security   Shares     Value  
   

Bank of India

     1,170,564      $ 6,842,006   

Bharat Heavy Electricals Ltd.

     6,609,815        24,438,274   

Bharat Petroleum Corp. Ltd.

     1,881,789        12,865,204   

Bharti Airtel Ltd.

     7,659,030        45,457,233   

Cairn India Ltd.

     3,420,337        18,731,540   

Canara Bank Ltd.

     962,846        7,355,184   

Cipla Ltd.

     3,805,951        25,173,632   

Coal India Ltd.

     6,975,874        39,722,926   

Dabur India Ltd.

     2,903,513        6,745,778   

Divi’s Laboratories Ltd.

     306,677        5,693,296   

DLF Ltd.

     4,930,313        25,134,129   

Dr. Reddy’s Laboratories Ltd.

     1,335,684        43,097,628   

Dr. Reddy’s Laboratories Ltd. SP ADR

     563,233        18,361,396   

GAIL (India) Ltd.

     4,328,072        26,455,295   

Godrej Consumer Products Ltd.

     1,094,786        14,588,091   

HCL Technologies Ltd.

     1,821,973        24,225,995   

HDFC Bank Ltd.

     20,088,850        230,908,232   

HDFC Bank Ltd. SP ADR

     455,033        17,314,006   

Hero Motocorp Ltd.

     722,613        22,147,248   

Hindalco Industries Ltd.

     12,000,678        21,815,404   

Hindustan Unilever Ltd.

     10,975,336        89,378,230   

Housing Development Finance Corp. Ltd.

     18,556,399        258,418,449   

ICICI Bank Ltd.

     5,586,910        106,839,834   

ICICI Bank Ltd. SP ADR

     533,779        22,376,016   

Idea Cellular Ltd.a

     8,884,674        19,204,810   

Infosys Ltd.

     5,639,478        301,331,910   

Infosys Ltd. SP ADR

     311,301        16,788,463   

Infrastructure Development Finance Co. Ltd.

     12,143,121        33,323,554   

ITC Ltd.

     27,749,877        150,366,028   

Jaiprakash Associates Ltd.

     9,883,463        12,634,773   

Jindal Steel & Power Ltd.

     4,245,754        27,228,078   

JSW Steel Ltd.

     855,120        11,619,290   

Kotak Mahindra Bank Ltd.

     3,052,475        37,007,858   

Larsen & Toubro Ltd.

     2,726,677        68,551,582   

Larsen & Toubro Ltd. SP GDRc

     724,335        18,579,193   

LIC Housing Finance Ltd.

     4,098,913        17,509,188   

Lupin Ltd.

     1,562,218        16,796,607   

Mahindra & Mahindra Ltd.

     3,723,164        59,790,982   

NTPC Ltd.

     5,638,612        15,639,492   

Oil & Natural Gas Corp. Ltd.

     9,937,639        57,254,902   
 

 

12    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Consolidated Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Piramal Enterprises Ltd.

     350,589      $ 3,695,345   

Power Finance Corp. Ltd.

     3,548,922        13,140,894   

Power Grid Corp. of India Ltd.

     11,889,130        22,792,689   

Ranbaxy Laboratories Ltd.a

     1,251,383        8,700,223   

Reliance Capital Ltd.

     1,050,679        6,965,902   

Reliance Communications Ltd.

     3,857,032        4,328,128   

Reliance Industries Ltd.

     16,974,377        253,921,454   

Reliance Industries Ltd. SP GDRd

     799,170        24,134,934   

Reliance Infrastructure Ltd.

     1,087,932        8,378,706   

Reliance Power Ltd.a

     5,939,554        7,849,535   

Rural Electrification Corp. Ltd.

     2,666,731        11,185,516   

Satyam Computer Services Ltd.a

     6,491,639        14,103,699   

Sesa Goa Ltd.

     3,100,827        8,825,716   

Shriram Transport Finance Co. Ltd.

     1,284,469        16,423,874   

Siemens Ltd.

     442,051        4,097,534   

State Bank of India

     1,756,457        67,181,534   

State Bank of India SP GDR

     75,060        6,286,275   

Sterlite Industries (India) Ltd.

     17,588,910        30,373,644   

Sterlite Industries (India) Ltd. SP ADR

     3,096,708        21,831,791   

Sun Pharmaceuticals Industries Ltd.

     3,729,712        54,991,057   

Tata Communications Ltd. SP ADR

     3,611,779        29,472,117   

Tata Consultancy Services Ltd.

     6,203,210        172,966,999   

Tata Motors Ltd.

     10,093,272        53,346,574   

Tata Power Co. Ltd.

     10,269,568        17,819,083   

Tata Steel Ltd.

     3,357,254        21,073,472   

Titan Industries Ltd.

     2,796,253        13,409,474   

Ultratech Cement Ltd.

     735,065        25,239,191   

Unitech Ltd.a

     12,639,450        6,319,144   

United Breweries Ltd.

     560,373        6,320,097   

United Spirits Ltd.

     1,014,097        34,299,051   

Wipro Ltd.

     4,898,373        37,490,718   

Wipro Ltd. SP ADR

     2,843,185        27,294,576   

Zee Entertainment Enterprises Ltd.

     4,569,969        18,311,796   
   

 

 

  
      3,247,516,739   

INDONESIA — 2.98%

  

  

PT Adaro Energy Tbk

     145,624,500        23,659,178   

PT Astra Agro Lestari Tbk

     5,352,000        10,218,285   

PT Astra International Tbk

     279,906,500        230,274,401   
Security   Shares     Value  
   

PT Bank Central Asia Tbk

     181,977,500      $ 207,145,703   

PT Bank Danamon Indonesia Tbk

     49,017,216        31,956,171   

PT Bank Mandiri (Persero) Tbk

     126,545,400        131,606,692   

PT Bank Negara Indonesia (Persero) Tbk

     96,785,776        46,071,772   

PT Bank Rakyat Indonesia (Persero) Tbk

     156,962,122        153,494,288   

PT Bukit Asam (Persero) Tbk

     6,155,500        9,618,466   

PT Bumi Resources Tbk

     212,291,000        18,014,034   

PT Charoen Pokphand Indonesia Tbk

     107,649,945        49,015,342   

PT Global Mediacom Tbk

     46,085,500        10,968,764   

PT Gudang Garam Tbk

     7,756,000        38,765,954   

PT Indo Tambangraya Megah Tbk

     4,611,500        19,207,624   

PT Indocement Tunggal Prakarsa Tbk

     13,515,500        30,699,563   

PT Indofood Sukses Makmur Tbk

     62,635,000        47,315,724   

PT Indosat Tbk

     4,255,560        2,796,379   

PT Jasa Marga (Persero) Tbk

     21,199,000        12,175,139   

PT Kalbe Farma Tbk

     242,046,015        32,311,208   

PT Media Nusantara Citra Tbk

     22,358,000        6,825,281   

PT Perusahaan Gas Negara (Persero) Tbk

     174,342,000        86,598,189   

PT Semen Gresik (Persero) Tbk

     34,745,000        62,381,720   

PT Telekomunikasi Indonesia (Persero) Tbk

     129,145,000        143,665,209   

PT Unilever Indonesia Tbk

     14,631,000        34,595,990   

PT United Tractors Tbk

     29,983,153        59,882,533   

PT XL Axiata Tbk

     24,259,000        13,681,539   
   

 

 

  
      1,512,945,148   

MALAYSIA — 3.38%

  

  

AirAsia Bhd

     17,967,800        16,918,394   

Alliance Financial Group Bhd

     9,781,800        13,641,663   

AMMB Holdings Bhd

     31,677,175        64,779,080   

Axiata Group Bhd

     33,610,500        69,602,718   

Berjaya Sports Toto Bhd

     18,498,748        25,139,861   

British American Tobacco (Malaysia) Bhd

     1,918,000        37,857,305   

Bumi Armada Bhda

     11,978,800        14,690,067   

CIMB Group Holdings Bhd

     59,555,400        138,747,413   

DiGi.Com Bhd

     32,396,100        47,904,927   
 

 

CONSOLIDATED SCHEDULE OF INVESTMENTS

      13   

Table of Contents

Consolidated Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Felda Global Ventures Holdings Bhd

     14,440,900      $ 20,980,308   

Gamuda Bhd

     33,591,200        41,737,650   

Genting Bhd

     29,751,400        91,357,640   

Genting Malaysia Bhd

     57,224,600        68,510,280   

Genting Plantations Bhd

     5,184,900        14,210,032   

Hong Leong Bank Bhd

     4,637,900        21,880,143   

Hong Leong Financial Group Bhd

     908,500        4,215,464   

IHH Healthcare Bhda

     26,542,400        29,458,156   

IJM Corp. Bhd

     22,008,820        36,533,003   

IOI Corp. Bhd

     49,613,520        78,662,433   

Kuala Lumpur Kepong Bhd

     7,403,000        49,680,705   

Lafarge Malayan Cement Bhd

     4,736,300        14,957,543   

Malayan Banking Bhd

     51,537,400        152,586,057   

Malaysia Airports Holdings Bhd

     5,914,400        10,468,134   

Malaysia Marine and Heavy Engineering Holdings Bhd

     6,447,600        8,449,371   

Maxis Communications Bhd

     23,695,700        48,840,514   

MISC Bhda

     9,610,900        16,388,754   

MMC Corp. Bhd

     16,234,600        13,185,195   

Parkson Holdings Bhd

     9,351,210        13,948,901   

Petronas Chemicals Group Bhd

     24,871,300        51,102,655   

Petronas Dagangan Bhd

     1,483,800        11,292,340   

Petronas Gas Bhd

     5,633,500        33,394,506   

PPB Group Bhd

     6,620,000        26,518,557   

Public Bank Bhd Foreign

     10,131,700        52,781,223   

RHB Capital Bhd

     4,938,000        12,542,728   

Sapurakencana Petroleum Bhda

     21,549,900        20,221,553   

Sime Darby Bhd

     38,450,773        114,587,160   

Telekom Malaysia Bhd

     14,272,200        24,568,226   

Tenaga Nasional Bhd

     45,511,150        102,199,444   

UEM Land Holdings Bhda

     13,539,200        10,032,282   

UMW Holdings Bhd

     9,656,600        39,994,978   

YTL Corp. Bhd

     56,735,662        30,290,840   

YTL Power International Bhd

     45,540,260        22,398,057   
   

 

 

  
      1,717,256,260   

MEXICO — 5.27%

  

  

Alfa SAB de CV Series A

     47,754,000        116,152,773   

Alpek SAB de CV

     5,544,800        12,636,188   

America Movil SAB de CV Series L

     524,717,200        549,029,302   

Arca Continental SAB de CV

     6,663,836        50,169,317   

Cemex SAB de CV CPOa,b

     138,893,402        149,133,271   
Security   Shares     Value  
   

Coca-Cola FEMSA SAB de CV Series L

     3,957,393      $ 66,859,081   

Compartamos SAB de CVb

     13,758,200        21,878,832   

Controladora Comercial Mexicana SAB de CV BC Units

     4,320,900        14,936,211   

El Puerto de Liverpool SA de CV Series C1

     2,638,400        29,735,285   

Fomento Economico Mexicano SAB de CV BD Units

     26,480,400        296,159,710   

Grupo Aeroportuario del Pacifico SAB de CV Series B

     491,600        3,037,406   

Grupo Aeroportuario del Sureste SAB de CV Series B

     2,553,000        33,643,868   

Grupo Bimbo SAB de CV Series Ab

     11,881,200        32,236,877   

Grupo Carso SAB de CV Series A1

     2,649,041        12,851,361   

Grupo Financiero Banorte SAB de CV Series O

     24,384,556        180,986,096   

Grupo Financiero Inbursa SAB de CV Series O

     20,633,900        58,165,283   

Grupo Financiero Santander Mexico SAB de CV Series B

     19,854,400        59,293,072   

Grupo Mexico SAB de CV Series B

     52,913,388        207,794,976   

Grupo Modelo SAB de CV Series Cb

     10,148,998        90,839,368   

Grupo Televisa SAB de CV CPO

     36,424,900        195,523,060   

Industrias CH SAB de CV Series Ba

     1,825,100        14,891,663   

Industrias Penoles SAB de CV

     1,861,823        85,909,669   

Kimberly-Clark de Mexico SAB de CV Series A

     28,336,700        89,702,927   

Mexichem SAB de CV

     11,346,592        56,821,980   

Minera Frisco SAB de CV Series A1a,b

     3,702,141        15,633,770   

Wal-Mart de Mexico SAB de CV Series V

     73,655,900        231,321,242   
   

 

 

  
      2,675,342,588   

MOROCCO — 0.01%

  

  

Attijariwafa Bank

     50,453        1,796,905   

Douja Promotion Groupe Addoha SA

     148,710        1,057,526   
 

 

14    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Consolidated Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Maroc Telecom SA

     114,980      $ 1,466,383   
   

 

 

  
      4,320,814   

PERU — 0.57%

  

  

Compania de Minas Buenaventura SA SP ADR

     2,811,922        72,041,442   

Credicorp Ltd.

     890,504        133,557,790   

Southern Copper Corp.b

     2,245,861        84,871,087   
   

 

 

  
      290,470,319   

PHILIPPINES — 1.06%

  

  

Aboitiz Equity Ventures Inc.

     25,849,560        37,254,900   

Aboitiz Power Corp.

     6,153,364        5,826,476   

Alliance Global Group Inc.

     7,594,980        3,735,849   

Ayala Corp.

     4,015,576        57,231,340   

Ayala Land Inc.

     65,369,400        51,446,650   

Bank of the Philippine Islands

     18,498,714        48,225,865   

BDO Unibank Inc.a

     5,430,122        13,221,399   

DMCI Holdings Inc.

     1,198,000        1,576,316   

Energy Development Corp.

     5,397,900        1,006,298   

Globe Telecom Inc.

     808,150        22,360,274   

International Container Terminal Services Inc.

     9,909,200        19,984,122   

Jollibee Foods Corp.

     14,171,499        44,229,297   

Metropolitan Bank & Trust Co.

     740,705        2,076,743   

Philippine Long Distance Telephone Co.

     611,805        43,936,808   

San Miguel Corp.

     6,147,059        18,731,446   

SM Investments Corp.

     3,116,251        80,013,921   

SM Prime Holdings Inc.

     132,073,825        61,716,741   

Universal Robina Corp.

     10,508,100        24,499,948   
   

 

 

  
      537,074,393   

POLAND — 1.47%

  

  

Asseco Poland SA

     799,310        10,869,639   

Bank Handlowy w Warszawie SA

     437,243        12,382,273   

Bank Millennium SAa

     5,588,556        8,414,830   

Bank Pekao SAb

     1,705,880        86,192,737   

BRE Bank SAa,b

     193,746        20,597,967   

Cyfrowy Polsat SAa

     3,065,965        15,839,040   

ENEA SA

     1,522,176        7,432,149   

Eurocash SA

     694,987        11,603,002   

Grupa Lotos SAa

     863,825        11,366,011   

Jastrzebska Spolka Weglowa SAb

     562,911        16,845,394   

Kernel Holding SAa

     582,801        11,951,409   
Security   Shares     Value  
   

KGHM Polska Miedz SA

     1,848,382      $ 105,212,590   

Polska Grupa Energetyczna SA

     8,468,018        43,293,044   

Polski Koncern Naftowy Orlen SAa,b

     4,414,968        74,613,105   

Polskie Gornictwo Naftowe i Gazownictwo SAa

     23,803,311        42,889,524   

Powszechna Kasa Oszczednosci Bank Polski SA

     10,483,011        117,558,454   

Powszechny Zaklad Ubezpieczen SA

     729,831        92,626,958   

Synthos SA

     8,031,616        13,990,908   

Tauron Polska Energia SA

     14,663,879        20,324,477   

Telekomunikacja Polska SA

     9,945,159        21,302,887   

Zaklady Azotowe w Tarnowie-Moscicach SAa

     143,075        2,541,913   
   

 

 

  
      747,848,311   

RUSSIA — 5.70%

  

  

Federal Grid Co. of Unified Energy System OJSCa

     3,253,208,500        20,206,416   

Gazprom OAO

     138,573,117        622,166,586   

IDGC Holding JSCa

     231,044,700        14,488,117   

INTER RAO UES OJSCa

     12,758,441,700        9,005,179   

LSR Group OJSC SP GDRc

     2,431,708        11,536,023   

LUKOIL OAO

     6,615,326        424,338,576   

Magnit OJSC SP GDRb,c

     3,402,694        144,342,279   

Mechel OAO SP ADRb

     2,057,912        11,297,937   

MegaFon OAO SP GDRa

     856,186        24,615,348   

MMC Norilsk Nickel OJSC

     688,325        121,548,569   

Mobile TeleSystems OJSC SP ADR

     6,808,445        140,866,727   

NovaTek OAO SP GDRc

     1,228,220        142,473,520   

Novolipetsk Steel OJSC SP GDRc

     870,797        16,710,594   

Rosneft Oil Co. OJSC

     16,845,727        134,319,278   

Rostelecom OJSC

     16,900,860        67,774,312   

RusHydro OJSC

     1,585,484,100        35,665,122   

RusHydro OJSC SP ADR

     1,171,111        2,603,380   

Sberbank of Russia

     139,129,701        475,409,575   

Severstal OAO

     2,685,633        29,934,317   

Sistema JSFC SP GDRc

     1,352,430        26,588,774   

Surgutneftegas OJSC

     95,668,910        89,695,904   

Tatneft OAO, Class S

     20,335,080        133,096,857   
 

 

CONSOLIDATED SCHEDULE OF INVESTMENTS

      15   

Table of Contents

Consolidated Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

TMK OAO SP GDRc

     868,707      $ 12,952,421   

Uralkali OJSC

     16,112,735        119,782,019   

VTB Bank OJSC

     34,028,672,000        62,135,867   
   

 

 

  
      2,893,553,697   

SOUTH AFRICA — 7.05%

  

  

Absa Group Ltd.

     3,133,908        56,756,612   

African Bank Investments Ltd.b

     13,678,487        43,904,335   

African Rainbow Minerals Ltd.

     756,246        16,111,537   

Anglo American Platinum Ltd.b

     780,126        36,951,369   

AngloGold Ashanti Ltd.

     4,992,500        122,638,328   

ArcelorMittal South Africa Ltd.a

     4,829,090        15,580,835   

Aspen Pharmacare Holdings Ltd.a

     2,692,461        48,965,839   

Assore Ltd.

     143,291        5,389,761   

Aveng Ltd.

     3,370,362        12,320,469   

Barloworld Ltd.

     2,797,476        28,776,961   

Bidvest Group Ltd.

     4,334,637        115,033,798   

Discovery Holdings Ltd.

     770,889        6,452,212   

Exxaro Resources Ltd.

     2,267,508        43,428,539   

FirstRand Ltd.

     46,291,696        159,160,434   

Foschini Group Ltd. (The)

     3,736,149        44,574,626   

Gold Fields Ltd.

     9,638,915        82,104,860   

Growthpoint Properties Ltd.

     10,960,577        33,409,317   

Harmony Gold Mining Co. Ltd.

     5,215,559        32,975,432   

Impala Platinum Holdings Ltd.

     6,680,798        103,495,149   

Imperial Holdings Ltd.

     2,955,165        68,172,301   

Investec Ltd.

     6,480,218        46,228,978   

Kumba Iron Ore Ltd.

     878,066        55,616,620   

Liberty Holdings Ltd.

     1,604,470        20,832,164   

Life Healthcare Group Holdings Ltd.

     9,942,018        37,396,002   

Massmart Holdings Ltd.

     744,811        15,481,098   

MMI Holdings Ltd.

     9,986,203        24,874,524   

Mr. Price Group Ltd.

     2,555,122        32,978,778   

MTN Group Ltd.

     22,057,102        431,643,378   

Naspers Ltd. Class N

     5,101,733        331,382,084   

Nedbank Group Ltd.

     3,822,126        82,080,696   

Netcare Ltd.

     23,085,712        51,457,671   

Northam Platinum Ltd.

     1,431,103        6,249,024   

Pick n Pay Stores Ltd.b

     7,344,141        36,644,175   

PPC Ltd.

     7,880,615        30,309,720   

Redefine Properties Ltd.

     7,128,937        7,810,074   

Remgro Ltd.

     3,964,749        75,117,560   
Security   Shares     Value  
   

Reunert Ltd.

     3,022,358      $ 26,778,724   

RMB Holdings Ltd.

     3,999,446        18,248,389   

RMI Holdings Ltd.

     3,270,412        8,288,382   

Sanlam Ltd.

     27,290,540        137,719,488   

Sappi Ltd.a

     3,413,520        10,842,369   

Sasol Ltd.

     7,650,182        327,290,043   

Shoprite Holdings Ltd.

     6,477,996        124,106,179   

SPAR Group Ltd. (The)

     2,388,633        29,070,260   

Standard Bank Group Ltd.

     16,454,803        213,628,005   

Steinhoff International Holdings Ltd.a

     8,177,433        23,759,368   

Tiger Brands Ltd.

     2,779,731        94,023,912   

Truworths International Ltd.

     7,059,022        73,204,498   

Vodacom Group Ltd.

     3,761,959        49,955,689   

Woolworths Holdings Ltd.

     11,208,440        80,746,438   
   

 

 

  
      3,579,967,004   

SOUTH KOREA — 14.88%

  

  

AmorePacific Corp.b

     50,028        47,310,204   

AmorePacific Groupb

     30,665        11,950,805   

BS Financial Group Inc.

     1,634,890        23,628,960   

Celltrion Inc.b

     1,828,527        45,340,614   

Cheil Industries Inc.

     525,317        42,788,963   

Cheil Worldwide Inc.a

     1,213,760        26,902,076   

CJ CheilJedang Corp.b

     119,421        42,625,740   

CJ Corp.

     194,613        26,869,202   

Coway Co. Ltd.a

     792,900        36,502,727   

Daelim Industrial Co. Ltd.b

     323,215        28,864,212   

Daewoo Engineering & Construction Co. Ltd.a,b

     912,260        7,658,157   

Daewoo International Corp.b

     426,546        15,106,817   

Daewoo Securities Co. Ltd.

     2,047,240        23,160,428   

Daewoo Shipbuilding & Marine Engineering Co. Ltd.

     1,302,480        36,145,752   

DGB Financial Group Inc.

     890,010        13,356,417   

Dongbu Insurance Co. Ltd.

     466,556        20,444,746   

Doosan Corp.

     155,589        18,535,757   

Doosan Heavy Industries & Construction Co. Ltd.

     554,565        22,457,623   

Doosan Infracore Co. Ltd.a,b

     1,159,160        16,913,839   

E-Mart Co. Ltd.

     300,731        61,377,924   

GS Engineering & Construction Corp.b

     429,075        21,714,783   

GS Holdings Corp.b

     637,816        41,114,268   
 

 

16    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Consolidated Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Hana Financial Group Inc.

     2,299,440      $ 85,791,680   

Hankook Tire Co. Ltd.

     953,028        43,390,465   

Hanwha Chemical Corp.b

     1,063,670        19,547,972   

Hanwha Corp.

     485,740        15,655,647   

Hanwha Life Insurance Co. Ltd.

     2,737,400        18,302,843   

Hyosung Corp.

     309,128        16,129,783   

Hyundai Department Store Co. Ltd.

     178,685        24,917,632   

Hyundai Development Co.b

     602,870        13,779,727   

Hyundai Engineering & Construction Co. Ltd.

     939,138        59,323,565   

Hyundai Glovis Co. Ltd.

     168,267        31,933,940   

Hyundai Heavy Industries Co. Ltd.

     551,922        109,331,858   

Hyundai Hysco Co. Ltd.

     427,863        14,264,405   

Hyundai Marine & Fire Insurance Co. Ltd.

     837,370        24,320,907   

Hyundai Merchant Marine Co. Ltd.a,b

     550,908        9,056,092   

Hyundai Mipo Dockyard Co. Ltd.b

     163,475        17,814,559   

Hyundai Mobis Co. Ltd.b

     898,803        259,806,838   

Hyundai Motor Co.

     2,132,693        429,364,924   

Hyundai Securities Co. Ltd.

     802,050        6,607,057   

Hyundai Steel Co.

     756,479        59,452,232   

Hyundai Wia Corp.

     195,379        28,689,087   

Industrial Bank of Korea

     1,840,410        22,265,252   

Kangwon Land Inc.

     1,022,350        31,015,351   

KB Financial Group Inc.

     5,053,955        184,361,483   

KCC Corp.

     38,020        10,006,880   

Kia Motors Corp.

     3,405,487        175,805,623   

Korea Aerospace Industries Ltd.b

     584,500        13,116,939   

Korea Electric Power Corp.a

     2,055,406        61,975,856   

Korea Electric Power Corp. SP ADRa

     3,111,384        46,546,305   

Korea Exchange Banka

     2,779,730        19,510,030   

Korea Gas Corp.

     365,790        24,153,474   

Korea Investment Holdings Co. Ltd.

     375,830        15,983,166   

Korea Zinc Co. Ltd.

     110,404        38,336,669   

Korean Air Lines Co. Ltd.a

     453,965        18,530,467   

KT Corp. SP ADR

     1,337,876        21,646,834   
Security   Shares     Value  
   

KT&G Corp.

     1,540,577      $ 109,835,425   

Kumho Petro Chemical Co. Ltd.b

     156,498        15,825,762   

LG Chem Ltd.

     618,820        169,445,783   

LG Corp.

     1,296,160        78,883,424   

LG Display Co. Ltd.a,b

     3,043,962        85,880,026   

LG Electronics Inc.b

     1,395,916        100,939,877   

LG Household & Health Care Ltd.b

     135,831        77,899,061   

LG Innotek Co. Ltd.a,b

     164,307        11,486,657   

LG Uplus Corp.a

     3,018,290        23,693,085   

Lotte Chemical Corp.

     223,796        49,189,341   

Lotte Confectionery Co. Ltd.

     5,660        9,560,308   

Lotte Shopping Co. Ltd.b

     128,551        46,181,367   

LS Corp.

     178,698        14,440,076   

LS Industrial Systems Co. Ltd.

     220,155        13,581,469   

Mando Corp.

     143,506        17,361,334   

Mirae Asset Securities Co. Ltd.

     192,659        7,730,735   

NCsoft Corp.b

     219,755        29,021,278   

Neo Holdings Co. Ltd.a,e

     147,429        —   

NHN Corp.b

     573,599        139,317,560   

OCI Co. Ltd.b

     199,740        32,004,147   

OCI NVa,b

     2,332,164        84,820,805   

ORION Corp.

     47,675        47,110,336   

POSCO

     891,992        291,200,491   

S-Oil Corp.

     585,432        54,011,181   

S1 Corp.

     322,972        20,729,623   

Samsung C&T Corp.

     1,730,268        105,782,321   

Samsung Card Co. Ltd.

     437,938        15,752,947   

Samsung Electro-Mechanics Co. Ltd.

     825,793        72,831,004   

Samsung Electronics Co. Ltd.

     1,456,853        2,077,326,467   

Samsung Engineering Co. Ltd.

     393,292        55,934,216   

Samsung Fire & Marine Insurance Co. Ltd.

     516,184        108,687,878   

Samsung Heavy Industries Co. Ltd.

     2,209,210        78,854,816   

Samsung Life Insurance Co. Ltd.

     748,175        71,858,518   

Samsung SDI Co. Ltd.

     480,955        61,739,196   

Samsung Securities Co. Ltd.

     724,424        38,401,346   

Samsung Techwin Co. Ltd.b

     560,918        33,774,482   

Shinhan Financial Group Co. Ltd.

     4,543,458        178,956,418   

Shinsegae Co. Ltd.b

     97,495        20,393,524   

SK C&C Co. Ltd.

     269,533        25,638,399   
 

 

CONSOLIDATED SCHEDULE OF INVESTMENTS

      17   

Table of Contents

Consolidated Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

SK Holdings Co. Ltd.

     326,397      $ 53,051,852   

SK Hynix Inc.a

     6,799,500        166,404,313   

SK Innovation Co. Ltd.

     809,399        133,052,914   

SK Networks Co. Ltd.

     964,500        7,116,898   

SK Telecom Co. Ltd.

     64,208        10,584,469   

SK Telecom Co. Ltd. SP ADR

     583,409        10,600,542   

Woori Finance Holdings Co. Ltd.

     4,464,100        54,212,744   

Woori Investment & Securities Co. Ltd.

     1,402,201        16,510,574   

Yuhan Corp.

     142,774        23,535,806   
   

 

 

  
      7,552,656,351   

TAIWAN — 10.65%

  

  

Acer Inc.a,b

     35,413,053        31,573,500   

Advanced Semiconductor Engineering Inc.

     68,701,701        56,968,697   

Advantech Co. Ltd.

     2,707,800        12,048,256   

Airtac International Group

     149,000        868,892   

Asia Cement Corp.b

     29,358,463        36,615,817   

ASUSTeK Computer Inc.b

     8,242,968        100,027,589   

AU Optronics Corp.a,b

     104,897,000        45,612,772   

Capital Securities Corp.

     29,244,879        11,090,115   

Catcher Technology Co. Ltd.b

     6,429,210        29,039,966   

Cathay Financial Holding Co. Ltd.b

     91,006,023        115,343,113   

Chailease Holding Co. Ltd.

     8,513,000        23,874,795   

Chang Hwa Commercial Bank Ltd.

     40,337,095        23,590,535   

Cheng Shin Rubber Industry Co. Ltd.

     29,444,112        79,995,801   

Cheng Uei Precision Industry Co. Ltd.

     3,824,503        7,232,219   

Chicony Electronics Co. Ltd.

     8,960,253        23,467,941   

China Airlines Ltd.a

     27,265,347        11,212,554   

China Development Financial Holding Corp.a

     192,547,848        57,310,350   

China Life Insurance Co. Ltd.a

     19,585,992        18,749,841   

China Motor Co. Ltd.b

     5,854,000        5,465,957   

China Petrochemical Development Corp.

     27,538,725        17,033,880   

China Steel Corp.b

     168,619,147        154,599,997   

Chinatrust Financial Holding Co. Ltd.

     139,562,549        82,561,904   

Chunghwa Telecom Co. Ltd.

     55,730,410        173,203,573   
Security   Shares     Value  
   

Clevo Co.b

     11,005,553      $ 15,451,141   

Compal Electronics Inc.b

     56,605,908        39,592,557   

CTCI Corp.

     1,338,000        2,665,491   

Delta Electronics Inc.

     25,333,000        94,358,839   

E Ink Holdings Inc.b

     11,293,000        8,660,130   

E.Sun Financial Holding Co. Ltd.

     33,493,615        20,039,832   

Epistar Corp.(b)

     8,182,345        15,886,710   

Eternal Chemical Co. Ltd.

     7,015,740        6,136,836   

EVA Airways Corp.a

     16,276,800        10,232,495   

Evergreen Marine Corp. Ltd.a

     23,405,325        14,950,564   

Far Eastern Department Stores Co. Ltd.b

     15,675,812        14,821,652   

Far Eastern New Century Corp.

     37,414,428        41,492,413   

Far EasTone Telecommunications Co. Ltd.

     18,000,000        41,683,380   

Farglory Land Development Co. Ltd.

     15,931,000        30,233,270   

Feng Hsin Iron & Steel Co. Ltd.

     7,533,000        13,127,807   

First Financial Holding Co. Ltd.

     68,705,485        43,771,044   

Formosa Chemicals & Fibre Corp.

     38,504,000        98,120,857   

Formosa International Hotels Corp.b

     247,203        3,053,946   

Formosa Petrochemical Corp.b

     11,010,000        30,617,869   

Formosa Plastics Corp.

     57,128,000        144,425,530   

Formosa Taffeta Co. Ltd.

     12,446,000        12,061,500   

Foxconn Technology Co. Ltd.

     9,546,542        26,226,322   

Fubon Financial Holding Co. Ltd.b

     87,917,969        118,541,748   

Giant Manufacturing Co. Ltd.

     5,988,203        32,800,734   

Hermes Microvision Inc.b

     372,000        7,573,795   

Highwealth Construction Corp.

     3,912,600        8,176,940   

Hiwin Technologies Corp.b

     1,696,408        14,009,740   

Hon Hai Precision Industry Co. Ltd.

     133,514,231        367,691,257   

Hotai Motor Co. Ltd.b

     3,114,000        23,722,515   

HTC Corp.b

     9,233,708        86,216,342   

Hua Nan Financial Holdings Co. Ltd.

     31,794,202        18,594,354   

Innolux Corp.a,b

     70,551,958        39,001,976   

Inventec Corp.

     22,007,281        8,753,507   

Kinsus Interconnect Technology Corp.

     1,653,000        5,209,765   
 

 

18    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Consolidated Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Largan Precision Co. Ltd.b

     1,188,000      $ 32,036,135   

LCY Chemical Corp.b

     6,058,076        7,718,985   

Lite-On Technology Corp.

     21,416,506        33,027,325   

Macronix International Co. Ltd.b

     59,416,261        16,923,715   

MediaTek Inc.b

     14,609,176        164,231,042   

Mega Financial Holding Co. Ltd.

     94,337,229        77,749,153   

Merida Industry Co. Ltd.

     1,662,000        8,095,293   

MStar Semiconductor Inc.

     3,933,331        29,566,441   

Nan Kang Rubber Tire Co. Ltd.b

     7,222,248        8,338,092   

Nan Ya Plastics Corp.

     68,091,000        130,597,742   

Novatek Microelectronics Corp. Ltd.

     3,993,000        16,689,936   

Oriental Union Chemical Corp.b

     7,009,000        7,784,759   

Pegatron Corp.a,b

     16,341,414        22,033,491   

Phison Electronics Corp.

     1,545,535        11,617,626   

Pou Chen Corp.

     38,282,220        38,841,617   

Powertech Technology Inc.b

     5,878,300        8,550,002   

President Chain Store Corp.

     8,539,000        47,204,625   

Quanta Computer Inc.b

     29,646,000        63,256,259   

Radiant Opto-Electronics Corp.

     5,613,690        20,247,243   

Realtek Semiconductor Corp.

     2,341,512        5,572,304   

Richtek Technology Corp.

     768,150        4,699,551   

Ruentex Development Co. Ltd.b

     13,058,608        28,567,700   

Ruentex Industries Ltd.

     8,447,009        20,329,882   

ScinoPharm Taiwan Ltd.

     3,329,000        8,169,187   

Shin Kong Financial Holding Co. Ltd.a

     32,879,002        9,963,502   

Siliconware Precision Industries Co. Ltd.b

     39,547,190        42,457,924   

Siliconware Precision Industries Co. Ltd. SP ADR

     1,110,128        5,872,577   

Simplo Technology Co. Ltd.b

     4,233,202        18,764,130   

SinoPac Financial Holdings Co. Ltd.

     55,974,888        25,471,862   

Standard Foods Corp.

     3,253,360        9,442,108   

Synnex Technology International Corp.b

     18,732,985        37,887,149   

Taishin Financial Holdings Co. Ltd.

     50,445,958        20,575,265   

Taiwan Business Bank Ltd.a

     24,915,242        7,776,959   

Taiwan Cement Corp.

     50,578,296        64,871,291   

Taiwan Cooperative Financial Holding Co. Ltd.

     37,483,987        21,479,709   
Security   Shares     Value  
   

Taiwan Fertilizer Co. Ltd.

     8,427,000      $ 20,423,754   

Taiwan Glass Industry Corp.b

     5,876,176        5,555,989   

Taiwan Mobile Co. Ltd.

     27,289,600        95,207,510   

Taiwan Semiconductor Manufacturing Co. Ltd.

     322,180,000        1,134,876,376   

Teco Electric and Machinery Co. Ltd.

     40,534,000        32,381,838   

TPK Holding Co. Ltd.b

     2,694,827        51,050,605   

Transcend Information Inc.

     171,000        487,065   

Tripod Technology Corp.b

     3,428,920        7,108,307   

TSRC Corp.b

     12,178,850        25,042,046   

Tung Ho Steel Enterprise Corp.

     13,986,000        13,671,785   

U-Ming Marine Transport Corp.

     5,310,000        8,233,529   

Uni-President Enterprises Co.

     61,309,711        114,698,025   

Unimicron Technology Corp.b

     12,051,000        11,455,285   

United Microelectronics Corp.b

     160,806,000        60,167,077   

United Microelectronics Corp. SP ADR

     5,854,625        10,831,056   

Walsin Lihwa Corp.a

     25,604,000        8,803,222   

Wan Hai Lines Ltd.a

     3,256,300        1,761,705   

Wintek Corp.a,b

     21,329,438        10,065,634   

Wistron Corp.

     23,993,298        26,689,324   

WPG Holdings Co. Ltd.

     14,047,532        15,957,455   

Yang Ming Marine Transport Corp.a

     37,479,075        17,750,021   

Yuanta Financial Holding Co. Ltd.

     95,715,140        49,524,797   

Yulon Motor Co. Ltd.b

     15,305,000        27,394,384   

Zhen Ding Technology Holding Ltd.b

     1,391,500        3,156,690   
   

 

 

  
      5,404,094,982   

THAILAND — 2.71%

  

  

Advanced Information Service PCL NVDR

     14,207,700        98,856,938   

Airports of Thailand PCL NVDR

     5,472,000        21,704,067   

Bangkok Bank PCL Foreign

     11,247,900        87,714,716   

Bangkok Bank PCL NVDR

     8,950,100        65,884,770   

Bangkok Dusit Medical Services PCL NVDR

     3,940,700        19,736,615   

Bank of Ayudhya PCL NVDR

     25,851,400        29,978,934   

Banpu PCL NVDR

     2,497,950        32,830,200   

BEC World PCL NVDR

     12,633,600        28,558,306   

Central Pattana PCL NVDR

     8,344,600        26,927,113   
 

 

CONSOLIDATED SCHEDULE OF INVESTMENTS

      19   

Table of Contents

Consolidated Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Charoen Pokphand Foods PCL NVDR

     43,045,600      $ 47,024,605   

CP All PCL NVDR

     58,143,100        92,344,924   

Glow Energy PCL NVDR

     7,031,100        20,325,197   

Indorama Ventures PCL NVDR

     24,603,180        19,682,544   

IRPC PCL NVDR

     123,653,500        17,706,350   

Kasikornbank PCL Foreign

     16,663,300        122,104,181   

Kasikornbank PCL NVDR

     8,176,000        58,262,588   

Krung Thai Bank PCL NVDR

     58,602,700        50,230,886   

PTT Exploration & Production PCL NVDR

     17,182,939        91,257,289   

PTT Global Chemical PCL NVDR

     19,640,030        52,153,357   

PTT PCL NVDR

     10,961,400        128,957,647   

Siam Cement PCL Foreign

     4,168,800        66,700,800   

Siam Cement PCL NVDR

     1,394,700        21,752,632   

Siam Commercial Bank PCL NVDR

     21,418,100        128,148,632   

Siam Makro PCL NVDR

     1,198,000        19,490,151   

Thai Oil PCL NVDR

     11,186,600        26,321,412   
   

 

 

  
      1,374,654,854   

TURKEY — 1.99%

  

  

Akbank TAS

     23,614,763        114,748,855   

Anadolu Efes Biracilik ve Malt Sanayii ASb

     2,070,013        31,073,500   

Arcelik ASb

     1,540,999        9,766,986   

Asya Katilim Bankasi ASa,b

     20,424,048        25,095,014   

BIM Birlesik Magazalar AS

     1,255,535        59,508,164   

Coca-Cola Icecek AS

     424,818        10,037,953   

Emlak Konut Gayrimenkul Yatirim Ortakligi AS

     8,432,204        13,689,176   

Enka Insaat ve Sanayi AS

     1,747,935        5,325,484   

Eregli Demir ve Celik Fabrikalari TAS

     19,298,159        24,891,851   

Ford Otomotiv Sanayi AS

     944,748        11,135,384   

Haci Omer Sabanci Holding AS

     8,950,216        48,765,528   

KOC Holding AS

     7,532,740        39,618,447   

Koza Altin Isletmeleri AS

     615,523        14,578,311   

Migros Ticaret ASa

     1        7   

TAV Havalimanlari Holding AS

     2,204,855        13,422,935   

Tofas Turk Otomobil Fabrikasi AS

     1,179,419        7,311,329   

Turk Hava Yollari AOa

     6,055,440        25,115,271   

Turk Telekomunikasyon ASb

     5,012,475        20,678,044   
Security   Shares     Value  
   

Turkcell Iletisim Hizmetleri ASa

     9,030,888      $ 60,000,062   

Turkiye Garanti Bankasi AS

     31,474,967        150,493,268   

Turkiye Halk Bankasi AS

     8,270,298        81,845,442   

Turkiye Is Bankasi AS Class C

     20,662,509        73,751,596   

Turkiye Petrol Rafinerileri AS

     1,764,785        49,451,068   

Turkiye Sise ve Cam Fabrikalari AS

     5,831,096        9,531,272   

Turkiye Vakiflar Bankasi TAO Class D

     18,040,281        55,365,052   

Yapi ve Kredi Bankasi ASa

     18,709,492        52,841,976   
   

 

 

  
      1,008,041,975   
   

 

 

  

TOTAL COMMON STOCKS

  

  

(Cost: $44,340,520,203)

  

     46,731,001,518   

PREFERRED STOCKS — 7.56%

  

BRAZIL — 6.45%

  

  

AES Tiete SA

     1,397,400        14,411,505   

Banco Bradesco SA

     25,424,580        454,198,657   

Banco do Estado do Rio Grande do Sul SA Class B

     2,456,700        22,490,653   

Bradespar SA

     3,006,000        44,167,872   

Braskem SA Class A

     2,097,100        15,464,933   

Centrais Eletricas Brasileiras SA Class B

     3,010,937        19,097,238   

Companhia Brasileira de Distribuicao Grupo Pao de Acucar Class A

     1,309,186        65,687,750   

Companhia de Bebidas das Americas

     9,891,223        439,254,150   

Companhia Energetica de Minas Gerais

     6,441,186        76,332,501   

Companhia Energetica de Sao Paulo Class B

     2,218,600        20,580,205   

Companhia Paranaense de Energia Class B

     1,382,275        20,275,138   

Eletropaulo Metropolitana Eletricidade de Sao Paulo SA

     1,308,200        7,907,031   

Gerdau SA

     11,541,285        96,026,573   

Itau Unibanco Holding SA

     29,843,911        529,374,315   

Itausa-Investimentos Itau SA

     33,893,450        177,430,179   

Klabin SA

     5,855,900        39,422,401   

Lojas Americanas SA

     4,908,116        44,833,633   
 

 

20    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Consolidated Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Marcopolo SA

     2,563,700      $ 17,181,238   

Metalurgica Gerdau SA

     3,687,400        39,072,900   

Oi SA

     11,008,968        40,926,567   

Petroleo Brasileiro SA

     55,178,327        463,563,811   

Telefonica Brasil SA

     4,223,767        111,389,010   

Usinas Siderurgicas de Minas Gerais SA Class A

     5,198,100        25,765,707   

Vale SA Class A

     26,491,251        489,735,079   
   

 

 

  
      3,274,589,046   

CHILE — 0.10%

  

  

Embotelladora Andina SA Class B

     1,956,980        13,218,354   

Sociedad Quimica y Minera de Chile SA Series B

     723,583        40,153,847   
   

 

 

  
      53,372,201   

COLOMBIA — 0.26%

  

  

Banco Davivienda SA

     1,058,171        15,102,776   

Bancolombia SA

     4,200,000        68,971,028   

Grupo Argos SA

     1,162,138        14,537,332   

Grupo Aval Acciones y Valores SA

     18,842,456        13,394,557   

Grupo de Inversiones Suramericana SA

     846,309        18,533,522   
   

 

 

  
      130,539,215   

RUSSIA — 0.29%

  

  

AK Transneft OAO

     21,433        48,062,492   

Sberbank of Russia

     13,146,538        31,935,588   

Surgutneftegas OJSC

     92,543,700        68,134,691   
   

 

 

  
      148,132,771   

SOUTH KOREA — 0.46%

  

  

Hyundai Motor Co. Ltd.

     66,206        4,426,675   

Hyundai Motor Co. Ltd. Series 2

     377,783        27,178,257   

LG Chem Ltd.

     95,485        8,456,594   

Samsung Electronics Co. Ltd.b

     235,670        191,526,424   
   

 

 

  
      231,587,950   
   

 

 

  

TOTAL PREFERRED STOCKS

  

  

(Cost: $3,982,067,055)

  

     3,838,221,183   
Security   Shares     Value  
   

RIGHTS — 0.01%

  

BRAZIL — 0.00%

  

  

Companhia de Bebidas das Americasa

     2,486      $ —   

Companhia de Bebidas das Americas Preferreda

     14,397        —   
   

 

 

  
      —   

CHILE — 0.01%

  

  

Cencosud SAa

     1,338,141        1,039,906   

Enersis SAa

     61,571,601        833,016   

Enersis SA SP ADRa

     1,600,946        320,189   
   

 

 

  
      2,193,111   
   

 

 

  

TOTAL RIGHTS

  

  

(Cost: $0)

  

     2,193,111   

SHORT-TERM INVESTMENTS — 3.12%

  

  

MONEY MARKET FUNDS — 3.12%

  

  

BlackRock Cash Funds: Institutional,
SL Agency Shares

   

  

0.21%f,g,h

     1,401,776,295        1,401,776,295   

BlackRock Cash Funds: Prime,
SL Agency Shares

    

0.18%f,g,h

     101,493,228        101,493,228   

BlackRock Cash Funds: Treasury,
SL Agency Shares

   

  

0.04%f,g

     82,094,427        82,094,427   
   

 

 

  
      1,585,363,950   
   

 

 

  

TOTAL SHORT-TERM INVESTMENTS

  

  

(Cost: $1,585,363,950)

  

     1,585,363,950   
   

 

 

  
 

 

CONSOLIDATED SCHEDULE OF INVESTMENTS

      21   

Table of Contents

Consolidated Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS INDEX FUND

February 28, 2013

 

          Value  
   

TOTAL INVESTMENTS
IN SECURITIES — 102.75%

  

(Cost: $49,907,951,208)

   $ 52,156,779,762   

Other Assets, Less Liabilities — (2.75)%

     (1,395,879,142 ) 
   

 

 

  

NET ASSETS — 100.00%

     $ 50,760,900,620   
   

 

 

  

BDR  —  Brazilian Depositary Receipts

CPO  —  Certificates of Participation (Ordinary)

NVDR  —  Non-Voting Depositary Receipts

SP ADR  —  Sponsored American Depositary Receipts

SP GDR  —  Sponsored Global Depositary Receipts

 

a 

Non-income earning security.

b 

All or a portion of this security represents a security on loan. See Note 5.

c 

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

d 

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

e 

Security valued using Level 3 inputs in accordance with management’s fair valuation policy. See Note 1.

f 

Affiliated issuer. See Note 2.

g 

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

h 

All or a portion of this security represents an investment of securities lending collateral. See Note 5.

Financial futures contracts purchased as of February 28, 2013 were as follows:

 

Number of
Contracts		      Issue
(Expiration)		   Exchange   Notional
Value		     Net
Unrealized
Appreciation
(Depreciation)		  
  1,950       MSCI Emerging Markets E-Mini (Mar. 2013)   NYSE Liffe     $102,170,250        $638,757   
                              

See notes to consolidated financial statements.

 

 

22    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Consolidated Statement of Assets and Liabilities (Unaudited)

iSHARES® MSCI EMERGING MARKETS INDEX FUND

February 28, 2013

 

   

ASSETS

   

Investments, at cost:

   

Unaffiliated

    $ 48,322,587,258   

Affiliated (Note 2)

      1,585,363,950   
  

 

 

  

Total cost of investments

    $ 49,907,951,208   
  

 

 

  

Investments in securities, at fair value (including securities on loana) (Note 1):

   

Unaffiliated

    $ 50,571,415,812   

Affiliated (Note 2)

      1,585,363,950   
  

 

 

  

Total fair value of investments

      52,156,779,762   

Foreign currencies, at valueb

      30,185,703   

Cash

      2,052,295   

Cash held at broker

      9,810,000   

Receivables:

   

Investment securities sold

      364,673,461   

Due from custodian (Note 4)

      3,160,352   

Dividends and interest

      98,470,471   
  

 

 

  

Total Assets

      52,665,132,044   
  

 

 

  

LIABILITIES

   

Payables:

   

Investment securities purchased

      124,016,055   

Collateral for securities on loan (Note 5)

      1,503,269,523   

Capital shares redeemed

      250,445,836   

Futures variation margin

      451,659   

Foreign taxes (Note 1)

      270,449   

Investment advisory fees (Note 2)

      25,777,902   
  

 

 

  

Total Liabilities

      1,904,231,424   
  

 

 

  

NET ASSETS

    $ 50,760,900,620   
  

 

 

  

Net assets consist of:

   

Paid-in capital

    $ 53,333,760,443   

Distributions in excess of net investment income

      (48,393,523 ) 

Accumulated net realized loss

      (4,773,655,842 ) 

Net unrealized appreciation on investments and translation of assets and liabilities in foreign currencies

      2,249,189,542   
  

 

 

  

NET ASSETS

    $ 50,760,900,620   
  

 

 

  

Shares outstandingc

      1,166,850,000   
  

 

 

  

Net asset value per share

    $ 43.50   
  

 

 

  

 

a 

Securities on loan with a value of $1,411,540,454. See Note 5.

b 

Cost of foreign currencies: $30,393,719.

c 

$0.001 par value, number of shares authorized: 2 billion.

See notes to consolidated financial statements.

 

CONSOLIDATED FINANCIAL STATEMENTS

      23   

Table of Contents

Consolidated Statement of Operations (Unaudited)

iSHARES® MSCI EMERGING MARKETS INDEX FUND

Six months ended February 28, 2013

 

   

NET INVESTMENT INCOME

   

Dividends — unaffiliateda

    $ 280,066,418   

Interest — unaffiliated

      2,401   

Interest — affiliated (Note 2)

      28,988   

Securities lending income — affiliated (Note 2)b

      19,112,698   
  

 

 

  

Total investment income

      299,210,505   
  

 

 

  

EXPENSES

   

Investment advisory fees (Note 2)

      143,344,750   

Mauritius income taxes (Note 1)

      581,224   

Commitment fees (Note 7)

      44,292   
  

 

 

  

Total expenses

      143,970,266   

Less investment advisory fees waived (Note 2)

      (223,548 ) 
  

 

 

  

Net expenses

      143,746,718   
  

 

 

  

Net investment income

      155,463,787   
  

 

 

  

NET REALIZED AND UNREALIZED GAIN (LOSS)

   

Net realized gain (loss) from:

   

Investments — unaffiliated

      (349,576,455 ) 

In-kind redemptions — unaffiliated

      105,774,953   

Futures contracts

      16,465,260   

Foreign currency transactions

      (1,642,911 ) 
  

 

 

  

Net realized loss

      (228,979,153 ) 
  

 

 

  

Net change in unrealized appreciation/depreciation on:

   

Investments

      4,296,524,408   

Futures contracts

      (7,094,555 ) 

Translation of assets and liabilities in foreign currencies

      517,035   
  

 

 

  

Net change in unrealized appreciation/depreciation

      4,289,946,888   
  

 

 

  

Net realized and unrealized gain

      4,060,967,735   
  

 

 

  

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

    $ 4,216,431,522   
  

 

 

  

 

a 

Net of foreign withholding tax of $35,457,132.

b 

Net of foreign tax paid of $1,575,844.

See notes to consolidated financial statements.

 

24    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Consolidated Statements of Changes in Net Assets

iSHARES® MSCI EMERGING MARKETS INDEX FUND

 

      Six months ended
February 28, 2013
(Unaudited)		     Year ended
August 31, 2012		  

INCREASE (DECREASE) IN NET ASSETS

     

OPERATIONS:

     

Net investment income

    $ 155,463,787      $ 739,830,263   

Net realized loss

      (228,979,153 )      (1,068,409,206 ) 

Net change in unrealized appreciation/depreciation

      4,289,946,888        (1,942,224,140 ) 
  

 

 

    

 

 

  

Net increase (decrease) in net assets resulting from operations

      4,216,431,522        (2,270,803,083 ) 
  

 

 

    

 

 

  

DISTRIBUTIONS TO SHAREHOLDERS:

     

From net investment income

      (294,104,911 )      (703,374,541 ) 
  

 

 

    

 

 

  

Total distributions to shareholders

      (294,104,911 )      (703,374,541 ) 
  

 

 

    

 

 

  

CAPITAL SHARE TRANSACTIONS:

     

Proceeds from shares sold

      13,338,716,436        7,880,602,043   

Cost of shares redeemed

      (756,770,707 )      (4,146,345,050 ) 
  

 

 

    

 

 

  

Net increase in net assets from capital share transactions

      12,581,945,729        3,734,256,993   
  

 

 

    

 

 

  

INCREASE IN NET ASSETS

      16,504,272,340        760,079,369   

NET ASSETS

     

Beginning of period

      34,256,628,280        33,496,548,911   
  

 

 

    

 

 

  

End of period

    $ 50,760,900,620      $ 34,256,628,280   
  

 

 

    

 

 

  

Undistributed (distributions in excess of) net investment income included in net assets at end of period

    $ (48,393,523 )    $ 90,247,601   
  

 

 

    

 

 

  

SHARES ISSUED AND REDEEMED

     

Shares sold

      310,950,000        193,950,000   

Shares redeemed

      (17,550,000 )      (104,850,000 ) 
  

 

 

    

 

 

  

Net increase in shares outstanding

      293,400,000        89,100,000   
  

 

 

    

 

 

  

See notes to consolidated financial statements.

 

CONSOLIDATED FINANCIAL STATEMENTS

      25   

Table of Contents

Financial Highlights

iSHARES® MSCI EMERGING MARKETS INDEX FUND

(For a share outstanding throughout each period)

 

     

Six months
ended
Feb. 28, 2013
(Consolidated)

(Unaudited)

     Year ended
Aug. 31, 2012
(Consolidated)		     Year ended
Aug. 31, 2011
(Consolidated)		     Year ended
Aug. 31, 2010		    

Year ended

Aug. 31, 2009

    

Year ended

Aug. 31, 2008a

  

Net asset value, beginning of period

    $ 39.22      $ 42.71      $ 40.19      $ 35.48      $ 40.07      $ 44.78   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income from investment operations:

             

Net investment incomeb

      0.15        0.86        0.81        0.58        0.66        1.10   

Net realized and unrealized gain (loss)c

      4.41        (3.53 )      2.56        4.73        (4.66 )      (4.64 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      4.56        (2.67 )      3.37        5.31        (4.00 )      (3.54 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Less distributions from:

             

Net investment income

      (0.28 )      (0.82 )      (0.85 )      (0.60 )      (0.59 )      (1.17 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (0.28 )      (0.82 )      (0.85 )      (0.60 )      (0.59 )      (1.17 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of period

    $ 43.50      $ 39.22      $ 42.71      $ 40.19      $ 35.48      $ 40.07   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return

      11.62 %d      (6.18 )%      8.23 %      14.97 %      (9.47 )%      (8.36 )% 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios/Supplemental data:

             

Net assets, end of period (000s)

    $ 50,760,901      $ 34,256,628      $ 33,496,549      $ 39,766,955      $ 30,268,121      $ 20,302,756   

Ratio of expenses to average net assetse,f

      0.67 %      0.68 %      0.67 %      0.68 %      0.72 %      0.72 % 

Ratio of expenses to average net assets prior to waived feese,f

      0.67 %      0.69 %      0.67 %      0.68 %      0.72 %      0.72 % 

Ratio of net investment income to average net assetse

      0.72 %      2.13 %      1.76 %      1.45 %      2.32 %      2.32 % 

Portfolio turnover rateg

      5 %      15 %      17 %      14 %      5 %      11 % 

 

a 

Per share amounts were adjusted to reflect a three-for-one stock split effective July 24, 2008.

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 

Ratios for the years ended August 31, 2010 and prior have been recalculated, as necessary, to conform with the current presentation of foreign taxes.

g 

Portfolio turnover rates exclude portfolio securities received or delivered in Creation Units but include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the six months ended February 28, 2013 and the years ended August 31, 2012 and August 31, 2011 were 4%, 10% and 15%, respectively. See Note 4.

See notes to consolidated financial statements.

 

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Notes to Consolidated Financial Statements (Unaudited)

iSHARES® MSCI EMERGING MARKETS INDEX FUND

 

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 consolidated financial statements relate only to the following fund (the “Fund”):

 

iShares MSCI Index Fund   

Diversification

Classification

Emerging Markets

    Diversified

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 the 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 the Fund’s investment objective.

The Fund carries out its investment strategies associated with investment in Indian securities by investing in a wholly-owned subsidiary in the Republic of Mauritius (the “Subsidiary”), which in turn invests in Indian securities included in the underlying index. The investment adviser of the Fund also serves as the investment adviser to the Subsidiary. Through this investment structure, the Fund expects to obtain certain benefits under a current tax treaty between Mauritius and India. The accompanying consolidated financial statements for the Fund include the accounts of the Subsidiary.

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

 

1. SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies are consistently followed by the Fund in the preparation of its 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 CONSOLIDATED FINANCIAL STATEMENTS

      27   

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Notes to Consolidated Financial Statements (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS INDEX FUND

 

SECURITY VALUATION

The Fund’s investments are valued at fair value each day that the Fund’s listing exchange is open. 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 BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) provides oversight of the valuation of investments for the Fund. The investments of the Fund are valued pursuant to policies and procedures developed by the Global Valuation Committee and approved by the Board of Directors of the Company (the “Board”).

 

  •  

Equity investments traded on a recognized securities exchange are valued at that day’s last reported trade price or the official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price.

 

  •  

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

 

  •  

Financial futures contracts are valued at that day’s last reported settlement price on the exchange where the contract is traded.

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 deemed relevant by the Global Valuation Committee, in accordance with policies approved by the Board. These factors include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other factors, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or other default rates. Valuations based on such factors are reported to the Board on a quarterly basis.

The Global Valuation Committee employs various methods for calibrating valuation approaches for investments where an active market does not exist, including regular due diligence of the Company’s pricing vendors, a regular review of key inputs and assumptions, transactional back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing or stale prices and large movements in market values, and reviews of market related activity.

Fair value pricing could result in a difference between the prices used to calculate the 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 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 Fund’s perceived risk of that instrument. 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

 

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Notes to Consolidated Financial Statements (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS INDEX FUND

 

 

(such as exchange rates, financing terms, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and

 

  •  

Level 3 — Unobservable inputs for the asset or liability, including the Fund’s 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. In accordance with the Company’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period.

The following table summarizes the value of each of the Fund’s investments according to the fair value hierarchy as of February 28, 2013. The breakdown of the Fund’s investments into major categories is disclosed in its consolidated schedule of investments.

 

      Investments  
Investment Type    Level 1      Level 2     Level 3     Total  

Assets:

          

Common Stocks

    $ 46,731,001,518       $ —      $ 0 a    $ 46,731,001,518   

Preferred Stocks

      3,838,221,183         —        —        3,838,221,183   

Rights

      2,193,111         0 a      —        2,193,111   

Money Market Funds

      1,585,363,950         —        —        1,585,363,950   

Futures Contractsb

      638,757         —        —        638,757   
  

 

 

     

 

 

    

 

 

    

 

 

  
   $ 52,157,418,519       $ 0 a    $ 0 a    $ 52,157,418,519   
  

 

 

     

 

 

    

 

 

    

 

 

  
                                   

 

  a   

Rounds to less than $1.

  b   

Futures contracts are shown at the net unrealized appreciation (depreciation) on the contracts.

SECURITY TRANSACTIONS AND INCOME RECOGNITION

Security transactions are accounted for on trade date. Dividend income is recognized on the ex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities as of February 28, 2013 are reflected in dividends receivable. Non-cash dividends received in the form of stock in an elective dividend, if any, are recorded as dividend income at fair value. Distributions received by the Fund may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. Interest income is accrued daily. Realized gains and losses on investment transactions are determined using the specific identification method.

FOREIGN CURRENCY TRANSLATION

The accounting records of the Fund 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.

The 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 Fund as a component of realized and unrealized gains and losses from investments for financial reporting purposes.

 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

      29   

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Notes to Consolidated Financial Statements (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS INDEX FUND

 

FOREIGN TAXES

The Fund may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Fund invests. These foreign taxes, if any, are paid by the Fund and are reflected in its consolidated statement 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 stock dividends are presented as “other foreign taxes,” and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable as of February 28, 2013, if any, are disclosed in the Fund’s consolidated statement of assets and liabilities.

The Fund conducts its investment activities in India through the Subsidiary and expects to obtain benefits under the Double Tax Avoidance Agreement (“DTAA”). In order to be eligible to claim benefits under the DTAA, the Subsidiary must satisfy certain conditions, including the establishment and maintenance of valid tax residence in Mauritius. The Subsidiary is subject to tax in Mauritius on its net income at the rate of 15%. However, a system of tax credits effectively reduces the Mauritius income tax rate to a maximum of 3%. These income taxes, if any, are paid by the Fund and are disclosed in the consolidated statement of operations. Further, the Subsidiary is not subject to tax in Mauritius on any gains from the sale of securities. Any dividends paid by the Subsidiary to the Fund will also be exempt from tax in Mauritius. The foregoing is based upon current interpretation and practice and is subject to future changes in the tax laws of India or Mauritius and in the DTAA.

As a result of legislative changes enacted by the 2012 India Finance Act (“the Act”) and its general anti-avoidance rules (“GAAR”), which are effective April 1, 2013 but have been proposed to be deferred until April 1, 2016, the Subsidiary’s ability to leverage the treaty between Mauritius and India may be adversely impacted, and therefore the Fund may be subject to taxes on capital gains and/or dividends realized on Indian securities. The Act also includes provisions that impose Indian tax on the transfer of shares of an Indian company. However, until more definitive guidance on the legislative changes is available, the impact to the Fund, if any, cannot be determined at this time.

DISTRIBUTIONS TO SHAREHOLDERS

Dividends and distributions paid by the 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 Fund.

FEDERAL INCOME TAXES

The Fund is treated as an entity separate from the Company’s other funds for federal income tax purposes. It is the policy of the 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 December 2011, the Financial Accounting Standards Board issued guidance to enhance current disclosure requirements on offsetting of certain assets and liabilities and enable financial statement users to compare financial statements prepared under U.S. GAAP and International Financial Reporting Standards (IFRS). The new disclosures are required for investments and derivative financial instruments

 

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Notes to Consolidated Financial Statements (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS INDEX FUND

 

subject to master netting agreements or similar agreements and require an entity to disclose both gross and net information about such investments and transactions eligible for offset in the statement of assets and liabilities. In addition, the standard requires disclosure of collateral received and posted in connection with master netting agreements or similar agreements. The guidance is effective for financial statements for fiscal years beginning after January 1, 2013, and interim periods within those fiscal years. Management is evaluating the impact of this guidance on the Fund’s financial statements and disclosures.

 

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 the 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 Fund, except interest, taxes, brokerage commissions and other expenses connected with the execution of portfolio transactions, distribution fees, litigation expenses and any extraordinary expenses.

The Subsidiary has entered into a separate contract with BFA under which BFA provides investment advisory services to the Subsidiary but does not receive separate compensation from the Subsidiary for providing it with such services. The Subsidiary has also entered into separate arrangements that provide for the provision of other services to the Subsidiary (including administrative, custody, transfer agency and other services), and BFA pays the costs and expenses related to the provision of those services.

For its investment advisory services to the Fund, BFA is entitled to an annual investment advisory fee based on the Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:

 

Investment Advisory Fee      Aggregate Average Daily Net Assets
    0.75 %     

First $14 billion

    0.68       

Over $14 billion, up to and including $28 billion

    0.61       

Over $28 billion, up to and including $42 billion

    0.56       

Over $42 billion, up to and including $56 billion

    0.50       

Over $56 billion, up to and including $70 billion

    0.45       

Over $70 billion, up to and including $84 billion

    0.40       

Over $84 billion

BFA has voluntarily waived a portion of its investment advisory fees for the Fund in the amount of $223,548.

BFA has contractually agreed to waive a portion of its investment advisory fees for the Fund through June 30, 2014 in an amount equal to the investment advisory fees payable on the amount of the Fund’s investment in other iShares funds. The Fund did not hold any iShares funds during the six months ended February 28, 2013.

The U.S. Securities and Exchange Commission has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”) to serve as securities lending agent for the Fund, subject to applicable conditions. BTC is an affiliate of BFA. Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, and any fees or other payments to and from borrowers of securities. The Fund retains 65% of securities lending income and pays a fee to BTC equal to 35% of such income. The Fund benefits from a borrower default indemnity provided by BlackRock. As securities lending agent, BTC bears all operational costs directly related to securities lending as well as the cost of borrower default indemnification. BTC is also responsible for fees and expenses incurred by the Fund as a result of the investment of cash collateral received for securities on loan in a money market fund managed by BFA or an affiliate.

 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

      31   

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Notes to Consolidated Financial Statements (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS INDEX FUND

 

For the six months ended February 28, 2013, BTC earned securities lending agent fees from the Fund in the amount of $10,842,998.

For the six months ended February 28, 2013, BTC, the Fund’s securities lending agent, has agreed to voluntarily reimburse the Fund in the amount of $551,545, related to the foreign tax on the securities lending income. Such reimbursement is included in the “Securities lending income — affiliated” in the Fund’s consolidated statement of operations.

BlackRock Investments, LLC, an affiliate of BFA, is the distributor for the Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Fund.

The 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 consolidated statement of operations.

The PNC Financial Services Group, Inc. is the largest stockholder of BlackRock and is considered to be an affiliate of the Fund for 1940 Act purposes.

The Fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the Fund’s underlying index.

Certain directors and officers of the Company are also officers of BTC and/or BFA.

 

3. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the six months ended February 28, 2013, were $8,571,735,683 and $2,165,855,981, respectively.

In-kind purchases and sales (see Note 4) for the six months ended February 28, 2013, were $6,395,790,624 and $365,564,416, respectively.

 

4. CAPITAL SHARE TRANSACTIONS

Capital shares are issued and redeemed by the 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 the Fund are not redeemable. Transactions in capital shares for the Fund are disclosed in detail in the consolidated 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 may also 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 consolidated statement of assets and liabilities.

 

32    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

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iSHARES® MSCI EMERGING MARKETS INDEX FUND

 

5. LOANS OF PORTFOLIO SECURITIES

The Fund may lend its investment securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by the Fund is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter, at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund on the next business day. The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Fund benefits from a borrower default indemnity provided by BlackRock. BlackRock’s indemnity allows for full replacement of securities lent. Any securities lending cash collateral may be reinvested in certain short-term instruments either directly on behalf of a fund or through one or more joint accounts or money market funds, including those managed by BFA or its affiliates. The Fund could suffer a loss if the value of an investment purchased with cash collateral falls below the value of the cash collateral received.

As of February 28, 2013, any securities on loan were collateralized by cash. The cash collateral received was invested in money market funds managed by BFA. The value of any securities on loan as of February 28, 2013 and the value of the related collateral are disclosed in the consolidated statement of assets and liabilities. Securities lending income, as disclosed in the consolidated statement of operations, represents the income earned from the investment of the cash collateral, net of fees and other payments to and from borrowers, and less the fees paid to BTC as securities lending agent.

 

6. 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 Fund. Because such gains or losses are not taxable to the Fund 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 Fund’s tax year. These reclassifications have no effect on net assets or net asset values per share.

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

As of August 31, 2012, the Funds’ fiscal year-end, the Fund had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:

 

Non-

Expiring a

  

Expiring

2013

    

Expiring

2014

    

Expiring

2015

    

Expiring

2016

    

Expiring

2017

    

Expiring

2018

    

Expiring

2019

     Total  
$602,564,447   $ 20,296,564      $ 11,239,258      $ 29,973,301      $ 13,844,901      $ 228,196,854      $ 1,201,366,175      $ 873,167,649      $ 2,980,649,149   

 

  a   

Must be utilized prior to losses subject to expiration.

The Fund may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” The Fund may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.

As of February 28, 2013, the cost of investments for federal income tax purposes was $50,475,706,833. Net unrealized appreciation was $1,681,072,929, of which $7,072,858,325 represented gross unrealized appreciation on securities and $5,391,785,396 represented gross unrealized depreciation on securities.

 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

      33   

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Notes to Consolidated Financial Statements (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS INDEX FUND

 

Management has reviewed the tax positions as of February 28, 2013, inclusive of the open tax return years, and has determined that no provision for income tax is required in the Fund’s consolidated financial statements.

 

7. FINANCIAL FUTURES CONTRACTS

The Fund may purchase or sell financial futures contracts in an effort to help the Fund track its underlying index. A futures contract is a standardized, exchange-traded agreement to buy and sell a financial instrument at a set price on a future date. Upon entering into a futures contract, the Fund is required to pledge to the executing broker which holds segregated from its own assets, an amount of cash, U.S. government securities or other high-quality debt and equity securities equal to the minimum initial margin requirements of the exchange on which the contract is traded. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as margin variation and are recorded by the Fund as unrealized appreciation or depreciation. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Losses may arise if the value of a futures contract decreases due to an unfavorable change in the market rates or values of the underlying instrument during the term of the contract or if the counterparty does not perform under the contract. The use of futures contracts also involves the risk of an imperfect correlation in the movements in the price of futures contracts and the assets underlying such contracts.

The following table shows the value of futures contracts held by the Fund as of February 28, 2013 and the related locations in the consolidated statement of assets and liabilities, presented by risk exposure category:

 

Assets  

Equity contracts:

   

Variation margin/Net assets consist
of — net unrealized appreciation
(depreciation)a

    $ 638,757   
  

 

 

  
          

 

  a   

Represents cumulative appreciation of futures contracts as reported in the consolidated schedule of investments. Only current day’s variation margin is reported separately within the consolidated statement of assets and liabilities.

The following table shows the realized and unrealized gains (losses) on futures contracts held by the Fund during the six months ended February 28, 2013 and the related locations in the consolidated statement of operations, presented by risk exposure category:

 

      Net Realized
Gain (Loss)		      Net Change in Unrealized
Appreciation/Depreciation		  

Equity contracts:

      

Futures contracts

    $ 16,465,260       $ (7,094,555 ) 
  

 

 

     

 

 

  
                   

For the six months ended February 28, 2013, the average quarter-end number of contracts and notional value of open futures contracts for the Fund were 2,365 and $116,995,180, respectively.

 

8. LINE OF CREDIT

The Fund, along with certain other iShares funds, is a party to a $125 million credit agreement with State Street Bank and Trust Company, which expires October 30, 2013. The credit agreement was established to facilitate the funding of purchases of securities in India. The credit agreement has the following terms: a commitment fee of 0.08% per annum on the unused portion of the credit agreement and

 

34    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Notes to Consolidated Financial Statements (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS INDEX FUND

 

interest at a rate equal to the higher of (a) the one-month LIBOR plus 1.00% per annum or (b) the U.S. Federal Funds rate plus 1.00% per annum on amounts borrowed. The commitment fee is allocated to each fund participating in the credit agreement based on each fund’s pro-rata share of the aggregate average daily value of assets invested in local Indian securities.

The Fund did not borrow under the credit agreement during the six months ended February 28, 2013.

 

9. LEGAL PROCEEDINGS

On January 18, 2013, a lawsuit was filed in the United States District Court for the Middle District of Tennessee by Laborers’ Local 265 Pension Fund and Plumbers and Pipefitters Local No. 572 Pension Fund against BFA, BTC, and the current members of the iShares Trust Board of Trustees and the Board of Directors of iShares, Inc. (collectively, “Defendants”) for alleged violations of, among other things, Sections 36(a) and 36(b) of the 1940 Act. The complaint purports to be brought derivatively on behalf of iShares Trust and iShares, Inc., as well as the following eight funds: iShares Russell MidCap Index Fund; iShares MSCI EAFE Index Fund; iShares MSCI Emerging Markets Index Fund; iShares Russell 2000 Growth Index Fund; iShares Russell 2000 Value Index Fund; iShares Core S&P Mid-Cap ETF; iShares Core S&P Small-Cap ETF; and iShares Dow Jones U.S. Real Estate Index Fund. The complaint alleges, among other things, that BFA and BTC breached their fiduciary duties under the 1940 Act by charging allegedly excessive fees in connection with the provision of securities lending services to the above eight funds, that the individual defendants breached their fiduciary duties under the 1940 Act by approving those fee arrangements, and that the securities lending contracts are unenforceable under Section 47(b) of the 1940 Act. Plaintiffs seek injunctive relief, rescission of the securities lending contracts, and monetary damages of an unspecified amount. Defendants believe the claims are without merit and intend to vigorously defend themselves against the allegations in the lawsuit. On March 11, 2013, the Defendants filed a motion to dismiss the lawsuit.

 

10. SUBSEQUENT EVENTS

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

 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

      35   

Table of Contents

Supplemental Information (Unaudited)

iSHARES® MSCI EMERGING MARKETS INDEX FUND

 

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 the 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		  
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		  
$ 0.18635       $ —       $ 0.09021       $ 0.27656         67 %      —   %      33 %      100 % 

 

36    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Notes:

 

 

NOTES

      37   

Table of Contents

Notes:

 

 

38    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents
LOGO    

 

For more information visit www.iShares.com or call 1-800-474-2737

 

This report is intended for the Fund’s 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 MSCI Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.

A description of the policies that the Fund uses to determine how to vote proxies relating to portfolio securities and information about how the Fund 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 Fund’s website at www.iShares.com; and on the U.S. Securities and Exchange Commission (SEC) website at www.sec.gov.

The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Form N-Q is 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 Fund also discloses its complete schedule of portfolio holdings on a daily and monthly basis on the Fund’s website.

©2013 BlackRock, Inc. All rights reserved. ISHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.

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iS-SAR-85-0213

Table of Contents

FEBRUARY 28, 2013

 

 

2013 SEMI-ANNUAL REPORT (UNAUDITED)

 

     LOGO

 

iShares, Inc.

 

Ø    

iShares MSCI BRIC Index Fund  |  BKF  |  NYSE Arca

Ø    

iShares MSCI Emerging Markets Asia Index Fund  |  EEMA  |  NASDAQ

Ø    

iShares MSCI Emerging Markets Consumer Discretionary Sector Index Fund  |  EMDI  |  NASDAQ

Ø    

iShares MSCI Emerging Markets Energy Sector Capped Index Fund  |  EMEY  |  NASDAQ

Ø    

iShares MSCI Emerging Markets Growth Index Fund  |  EGRW  |  NASDAQ

Ø    

iShares MSCI Emerging Markets Minimum Volatility Index Fund  |  EEMV  |  NYSE Arca

Ø    

iShares MSCI Emerging Markets Small Cap Index Fund  |  EEMS  |  NYSE Arca

Ø    

iShares MSCI Emerging Markets Value Index Fund  |  EVAL  |  NASDAQ

Table of Contents

Table of Contents

 

Fund Performance Overviews

      5   

Shareholder Expenses

      15   

Consolidated Schedules of Investments

      17   

iShares MSCI BRIC Index Fund

      17   

iShares MSCI Emerging Markets Asia Index Fund

      23   

iShares MSCI Emerging Markets Consumer Discretionary Sector Index Fund

      31   

iShares MSCI Emerging Markets Energy Sector Capped Index Fund

      33   

iShares MSCI Emerging Markets Growth Index Fund

      35   

iShares MSCI Emerging Markets Minimum Volatility Index Fund

      42   

iShares MSCI Emerging Markets Small Cap Index Fund

      47   

iShares MSCI Emerging Markets Value Index Fund

      57   

Consolidated Financial Statements

      64   

Consolidated Financial Highlights

      74   

Notes to Consolidated Financial Statements

      82   

Supplemental Information

      93   

Table of Contents

Fund Performance Overview

iSHARES® MSCI BRIC INDEX FUND

Performance as of February 28, 2013

 

Average Annual Total Returns
Year Ended 2/28/13   Five Years Ended 2/28/13   Inception to 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
(6.61)%   (6.84)%   (5.93)%   (3.94)%   (4.00)%   (3.64)%   (4.66)%   (4.77)%   (4.31)%
Cumulative Total Returns
Year Ended 2/28/13   Five Years Ended 2/28/13   Inception to 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
(6.61)%   (6.84)%   (5.93)%   (18.19)%   (18.45)%   (16.94)%   (22.36)%   (22.83)%   (20.83)%

Total returns for the period since inception are calculated from the inception date of the Fund (11/12/07). “Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

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 (11/16/07), 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.

 

FUND PERFORMANCE OVERVIEWS

      5   

Table of Contents

Fund Performance Overview (Continued)

iSHARES® MSCI BRIC INDEX FUND

 

The iShares MSCI BRIC Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI BRIC IndexSM (the “Index”). The Index is a free float-adjusted market capitalization index that is designed to measure the combined equity market performance in Brazil, Russia, India and China (BRIC). 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 February 28, 2013, the total return for the Fund was 12.88%, net of fees, while the total return for the Index was 13.28%.

 

PORTFOLIO ALLOCATION

As of 2/28/13

 

Sector    Percentage of
Net Assets

Financial

      32.29 % 

Energy

      20.25   

Consumer Non-Cyclical

      12.04   

Communications

      9.63   

Basic Materials

      8.68   

Consumer Cyclical

      4.94   

Industrial

      4.09   

Utilities

      3.59   

Technology

      3.17   

Diversified

      1.05   

Short-Term and Other Net Assets

      0.27   
  

 

 

  

TOTAL

      100.00 % 
  

 

 

  

TEN LARGEST FUND HOLDINGS

As of 2/28/13

 

Security    Percentage of
Net Assets

China Mobile Ltd. (China)

      3.92 % 

China Construction Bank Corp. Class H (China)

      3.54   

Gazprom OAO (Russia)

      2.80   

Industrial and Commercial Bank of China Ltd. Class H (China)

      2.76   

Itau Unibanco Holding SA (Preferred) (Brazil)

      2.39   

Sberbank of Russia (Russia)

      2.17   

Vale SA Class A (Preferred) (Brazil)

      2.12   

Bank of China Ltd. Class H (China)

      2.10   

Tencent Holdings Ltd. (China)

      2.07   

CNOOC Ltd. (China)

      2.06   
  

 

 

  

TOTAL

      25.93 % 
  

 

 

  
 

 

6    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Fund Performance Overview

iSHARES® MSCI EMERGING MARKETS ASIA INDEX FUND

Performance as of February 28, 2013

 

Average Annual Total Returns   Cumulative Total Returns
Year Ended 2/28/13   Inception to 2/28/13   Inception to 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
3.77%   4.17%   4.33%   5.51%   5.15%   6.13%   5.84%   5.45%   6.51%

Total returns for the period since inception are calculated from the inception date of the Fund (2/8/12). “Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

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 (2/9/12), 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 MSCI Emerging Markets Asia Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI Emerging Markets Asia IndexSM (the “Index”). The Index is designed to measure the equity market performance in the emerging market countries of Asia. 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 February 28, 2013, the total return for the Fund was 14.45%, net of fees, while the total return for the Index was 14.79%.

 

PORTFOLIO ALLOCATION

As of 2/28/13

 

Sector    Percentage of
Net Assets

Financial

      27.07 % 

Technology

      16.81   

Consumer Cyclical

      10.80   

Communications

      9.52   

Industrial

      9.47   

Energy

      9.07   

Consumer Non-Cyclical

      6.83   

Basic Materials

      6.13   

Utilities

      2.64   

Diversified

      1.51   

Short-Term and Other Net Assets

      0.15   
  

 

 

  

TOTAL

      100.00 % 
  

 

 

  

TEN LARGEST FUND HOLDINGS

As of 2/28/13

 

Security    Percentage of
Net Assets

Samsung Electronics Co. Ltd. (South Korea)

      6.70 % 

Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan)

      3.74   

China Mobile Ltd. (China)

      2.80   

China Construction Bank Corp. Class H (China)

      2.54   

Industrial and Commercial Bank of China Ltd. Class H (China)

      1.99   

Bank of China Ltd. Class H (China)

      1.52   

Tencent Holdings Ltd. (China)

      1.52   

CNOOC Ltd. (China)

      1.50   

Hyundai Motor Co. (South Korea)

      1.32   

PetroChina Co. Ltd. Class H (China)

      1.21   
  

 

 

  

TOTAL

      24.84 % 
  

 

 

  
 

 

FUND PERFORMANCE OVERVIEWS

      7   

Table of Contents

Fund Performance Overview

iSHARES® MSCI EMERGING MARKETS CONSUMER DISCRETIONARY SECTOR INDEX FUND

Performance as of February 28, 2013

 

Average Annual Total Returns   Cumulative Total Returns
Year Ended 2/28/13   Inception to 2/28/13   Inception to 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
1.37%   2.09%   2.20%   2.50%   2.50%   3.37%   2.65%   2.64%   3.57%

Total returns for the period since inception are calculated from the inception date of the Fund (2/8/12). “Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

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 (2/9/12), 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.

 

8    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Fund Performance Overview (Continued)

iSHARES® MSCI EMERGING MARKETS CONSUMER DISCRETIONARY SECTOR INDEX FUND

 

The iShares MSCI Emerging Markets Consumer Discretionary Sector Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI Emerging Markets Consumer Discretionary IndexSM (the “Index”). The Index is designed to measure the combined equity market performance of the consumer discretionary sector 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 February 28, 2013, the total return for the Fund was 8.82%, net of fees, while the total return for the Index was 9.21%.

 

PORTFOLIO ALLOCATION

As of 2/28/13

 

Sector    Percentage of
Net Assets

Auto Manufacturers

      27.04 % 

Retail

      26.72   

Media

      15.45   

Auto Parts & Equipment

      10.71   

Lodging

      4.17   

Electrical Components & Equipment

      2.51   

Leisure Time

      2.20   

Home Furnishings

      2.09   

Commercial Services

      1.60   

Real Estate

      1.46   

Holding Companies — Diversified

      1.37   

Textiles

      1.15   

Other*

      3.21   

Short-Term and Other Net Assets

      0.32   
  

 

 

  

TOTAL

      100.00 % 
  

 

 

  

TEN LARGEST FUND HOLDINGS

As of 2/28/13

 

Security    Percentage of
Net Assets

Hyundai Motor Co. (South Korea)

      10.18 % 

Naspers Ltd. Class N (South Africa)

      8.32   

Hyundai Mobis Co. Ltd. (South Korea)

      6.45   

PT Astra International Tbk (Indonesia)

      5.43   

Grupo Televisa SAB de CV CPO (Mexico)

      4.52   

Kia Motors Corp. (South Korea)

      4.45   

Belle International Holdings Ltd. (China)

      2.82   

LG Electronics Inc. (South Korea)

      2.51   

Genting Bhd (Malaysia)

      2.04   

S.A.C.I. Falabella SA (Chile)

      1.87   
  

 

 

  

TOTAL

      48.59 % 
  

 

 

  
 

 

  * Other includes sectors which individually represent less than 1% of net assets.

 

FUND PERFORMANCE OVERVIEWS

      9   

Table of Contents

Fund Performance Overview

iSHARES® MSCI EMERGING MARKETS ENERGY SECTOR CAPPED INDEX FUND

Performance as of February 28, 2013

 

Average Annual Total Returns   Cumulative Total Returns
Year Ended 2/28/13   Inception to 2/28/13   Inception to 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
(17.25)%   (17.29)%   (16.63)%   (15.99)%   (16.26)%   (15.20)%   (16.83)%   (17.11)%   (16.04)%

Total returns for the period since inception are calculated from the inception date of the Fund (2/8/12). “Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

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 (2/9/12), 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 MSCI Emerging Markets Energy Sector Capped Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI Emerging Markets Energy 25/50 IndexSM (the “Index”). The Index is designed to measure the performance of energy-related companies in 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 February 28, 2013, the total return for the Fund was 3.59%, net of fees, while the total return for the Index was 3.62%.

 

PORTFOLIO ALLOCATION

As of 2/28/13

 

Sector    Percentage of
Net Assets

Oil & Gas

      80.53 % 

Coal

      8.14   

Chemicals

      6.95   

Oil & Gas Services

      1.58   

Other*

      2.61   

Short-Term and Other Net Assets

      0.19   
  

 

 

  

TOTAL

      100.00 % 
  

 

 

  

 

TEN LARGEST FUND HOLDINGS

As of 2/28/13

 

Security    Percentage of
Net Assets

Gazprom OAO (Russia)

      9.68 % 

CNOOC Ltd. (China)

      7.21   

Petroleo Brasileiro SA (Preferred) (Brazil)

      7.10   

LUKOIL OAO (Russia)

      6.58   

PetroChina Co. Ltd. Class H (China)

      5.98   

China Petroleum & Chemical Corp. Class H (China)

      4.83   

Sasol Ltd. (South Africa)

      4.52   

Reliance Industries Ltd. (India)

      4.36   

Petroleo Brasileiro SA (Brazil)

      4.32   

China Shenhua Energy Co. Ltd. Class H (China)

      3.11   
  

 

 

  

TOTAL

      57.69 % 
  

 

 

  
 
  * Other includes sectors which individually represent less than 1% of net assets.

 

10    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Fund Performance Overview

iSHARES® MSCI EMERGING MARKETS GROWTH INDEX FUND

Performance as of February 28, 2013

 

Average Annual Total Returns   Cumulative Total Returns
Year Ended 2/28/13   Inception to 2/28/13   Inception to 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
3.43%   5.52%   4.26%   5.82%   7.17%   6.73%   6.16%   7.60%   7.15%

Total returns for the period since inception are calculated from the inception date of the Fund (2/8/12). “Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

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 (2/9/12), 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 MSCI Emerging Markets Growth Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI Emerging Markets Growth IndexSM (the “Index”). The Index generally represents approximately 50% of the MSCI Emerging Markets Index and consists of those securities classified by the Index provider as most representing the growth style. 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 February 28, 2013, the total return for the Fund was 12.82%, net of fees, while the total return for the Index was 13.32%.

 

PORTFOLIO ALLOCATION

As of 2/28/13

 

Sector    Percentage of
Net Assets

Financial

      23.20 % 

Consumer Non-Cyclical

      16.17   

Technology

      15.76   

Communications

      10.77   

Consumer Cyclical

      10.70   

Energy

      7.67   

Industrial

      5.76   

Basic Materials

      5.60   

Utilities

      2.56   

Diversified

      1.44   

Short-Term and Other Net Assets

      0.37   
  

 

 

  

TOTAL

      100.00 % 
  

 

 

  

TEN LARGEST FUND HOLDINGS

As of 2/28/13

 

Security    Percentage of
Net Assets

Samsung Electronics Co. Ltd. (South Korea)

      7.95 % 

Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan)

      4.40   

Itau Unibanco Holding SA (Preferred) (Brazil)

      2.03   

Sberbank of Russia (Russia)

      1.89   

CNOOC Ltd. (China)

      1.83   

Companhia de Bebidas das Americas (Preferred) (Brazil)

      1.74   

Tencent Holdings Ltd. (China)

      1.73   

Banco Bradesco SA (Preferred) (Brazil)

      1.72   

MTN Group Ltd. (South Africa)

      1.69   

Hon Hai Precision Industry Co. Ltd. (Taiwan)

      1.48   
  

 

 

  

TOTAL

      26.46 % 
  

 

 

  
 

 

FUND PERFORMANCE OVERVIEWS

      11   

Table of Contents

Fund Performance Overview

iSHARES® MSCI EMERGING MARKETS MINIMUM VOLATILITY INDEX FUND

Performance as of February 28, 2013

 

Average Annual Total Returns   Cumulative Total Returns
Year Ended 2/28/13   Inception to 2/28/13   Inception to 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
10.08%   10.06%   10.28%   19.78%   19.76%   20.13%   27.96%   27.94%   28.52%

Total returns for the period since inception are calculated from the inception date of the Fund (10/18/11). “Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

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.

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 MSCI Emerging Markets Minimum Volatility Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI Emerging Markets Minimum Volatility Index (the “Index”). The Index measures the performance of equity securities in global emerging markets that have lower absolute volatility. 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 February 28, 2013, the total return for the Fund was 11.11%, net of fees, while the total return for the Index was 11.18%.

 

PORTFOLIO ALLOCATION

As of 2/28/13

 

Sector    Percentage of
Net Assets

Financial

      26.45 % 

Consumer Non-Cyclical

      19.34   

Communications

      13.58   

Utilities

      8.22   

Consumer Cyclical

      8.05   

Energy

      7.88   

Technology

      6.95   

Industrial

      4.14   

Basic Materials

      3.11   

Diversified

      2.07   

Short-Term and Other Net Assets

      0.21   
  

 

 

  

TOTAL

      100.00 % 
  

 

 

  

TEN LARGEST FUND HOLDINGS

As of 2/28/13

 

Security    Percentage of
Net Assets

PT Bank Central Asia Tbk (Indonesia)

      1.73 % 

CP All PCL NVDR (Thailand)

      1.65   

Public Bank Bhd Foreign (Malaysia)

      1.43   

Advanced Information Service PCL NVDR (Thailand)

      1.43   

Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan)

      1.34   

Chunghwa Telecom Co. Ltd. (Taiwan)

      1.32   

Taiwan Mobile Co. Ltd. (Taiwan)

      1.31   

Malayan Banking Bhd (Malaysia)

      1.31   

China Minsheng Banking Corp. Ltd. Class H (China)

      1.30   

Credicorp Ltd. (Peru)

      1.24   
  

 

 

  

TOTAL

      14.06 % 
  

 

 

  
 

 

12    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Fund Performance Overview

iSHARES® MSCI EMERGING MARKETS SMALL CAP INDEX FUND

Performance as of February 28, 2013

 

Average Annual Total Returns   Cumulative Total Returns
Year Ended 2/28/13   Inception to 2/28/13   Inception to 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
5.43%   6.35%   5.32%   1.71%   2.51%   2.68%   2.64%   3.89%   4.15%

Total returns for the period since inception are calculated from the inception date of the Fund (8/16/11). “Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

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 (8/18/11), 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.

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 MSCI Emerging Markets Small Cap Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI Emerging Markets Small Cap IndexSM (the “Index”). The Index measures the performance of equity securities of small capitalization companies, whose market capitalization represents the bottom 14% of companies in emerging market countries, as measured by market capitalization. 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 February 28, 2013, the total return for the Fund was 16.17%, net of fees, while the total return for the Index was 15.94%.

 

PORTFOLIO ALLOCATION

As of 2/28/13

 

Sector    Percentage of
Net Assets

Financial

      21.46 % 

Industrial

      18.97   

Consumer Cyclical

      16.04   

Consumer Non-Cyclical

      15.73   

Basic Materials

      7.99   

Technology

      6.98   

Communications

      5.12   

Utilities

      3.28   

Energy

      2.42   

Diversified

      1.69   

Short-Term and Other Net Assets

      0.32   
  

 

 

  

TOTAL

      100.00 % 
  

 

 

  

TEN LARGEST FUND HOLDINGS

As of 2/28/13

 

Security    Percentage of
Net Assets

Empresas ICA SAB de CV (Mexico)

      0.47 % 

PT Lippo Karawaci Tbk (Indonesia)

      0.41   

Kardemir Karabuk Demir Celik Sanayi ve TAS Class D (Turkey)

      0.40   

Shenzhen International Holdings Ltd. (China)

      0.38   

Sino Biopharmaceutical Ltd. (China)

      0.38   

Estacio Participacoes SA (Brazil)

      0.38   

Bumrungrad Hospital PCL NVDR (Thailand)

      0.37   

Tongaat Hulett Ltd. (South Africa)

      0.36   

Kiatnakin Bank PCL NVDR (Thailand)

      0.35   

Nampak Ltd. (South Africa)

      0.35   
  

 

 

  

TOTAL

      3.85 % 
  

 

 

  
 

 

FUND PERFORMANCE OVERVIEWS

      13   

Table of Contents

Fund Performance Overview

iSHARES® MSCI EMERGING MARKETS VALUE INDEX FUND

Performance as of February 28, 2013

 

Average Annual Total Returns   Cumulative Total Returns
Year Ended 2/28/13   Inception to 2/28/13   Inception to 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
(3.93)%   0.00%   (3.60)%   (2.98)%   0.22%   (2.54)%   (3.15)%   0.23%   (2.69)%

Total returns for the period since inception are calculated from the inception date of the Fund (2/8/12). “Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

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 (2/9/12), 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 MSCI Emerging Markets Value Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI Emerging Markets Value IndexSM (the “Index”). The Index generally represents approximately 50% of the MSCI Emerging Markets Index and consists of those securities classified by the Index provider as most representing the value style. 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 February 28, 2013, the total return for the Fund was 10.58%, net of fees, while the total return for the Index was 10.76%.

 

PORTFOLIO ALLOCATION

As of 2/28/13

 

Sector    Percentage of
Net Assets

Financial

      30.20 % 

Energy

      15.00   

Basic Materials

      14.80   

Communications

      9.71   

Industrial

      7.31   

Consumer Cyclical

      6.08   

Technology

      4.97   

Utilities

      4.18   

Diversified

      3.94   

Consumer Non-Cyclical

      3.30   

Short-Term and Other Net Assets

      0.51   
  

 

 

  

TOTAL

      100.00 % 
  

 

 

  

TEN LARGEST FUND HOLDINGS

As of 2/28/13

 

Security    Percentage of
Net Assets

China Mobile Ltd. (China)

      3.57 % 

China Construction Bank Corp. Class H (China)

      3.10   

Gazprom OAO (Russia)

      2.54   

Industrial and Commercial Bank of China Ltd. Class H (China)

      2.44   

Vale SA Class A (Preferred) (Brazil)

      1.94   

Bank of China Ltd. Class H (China)

      1.91   

Petroleo Brasileiro SA (Preferred) (Brazil)

      1.84   

LUKOIL OAO (Russia)

      1.79   

Hyundai Motor Co. (South Korea)

      1.65   

Vale SA (Brazil)

      1.31   
  

 

 

  

TOTAL

      22.09 % 
  

 

 

  
 

 

14    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

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 September 1, 2012 to February 28, 2013.

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 MSCI Index Fund    Beginning
Account Value
(9/1/12)		      Ending
Account Value
(2/28/13)		      Annualized
Expense Ratio		     Expenses Paid
During Period a		  

BRIC

           

Actual

    $ 1,000.00       $ 1,128.80         0.67 %    $ 3.54   

Hypothetical (5% return before expenses)

      1,000.00         1,021.50         0.67        3.36   

Emerging Markets Asia

           

Actual

      1,000.00         1,144.50         0.49        2.61   

Hypothetical (5% return before expenses)

      1,000.00         1,022.40         0.49        2.46   

Emerging Markets Consumer Discretionary Sector

           

Actual

      1,000.00         1,088.20         0.67        3.47   

Hypothetical (5% return before expenses)

      1,000.00         1,021.50         0.67        3.36   

Emerging Markets Energy Sector Capped

           

Actual

      1,000.00         1,035.90         0.67        3.38   

Hypothetical (5% return before expenses)

      1,000.00         1,021.50         0.67        3.36   

 

SHAREHOLDER EXPENSES

      15   

Table of Contents

Shareholder Expenses (Unaudited) (Continued)

iSHARES®, INC.

 

iShares MSCI Index Fund    Beginning
Account Value
(9/1/12)		      Ending
Account Value
(2/28/13)		      Annualized
Expense Ratio		     Expenses Paid
During Period a		  

Emerging Markets Growth

           

Actual

    $ 1,000.00       $ 1,128.20         0.49 %    $ 2.59   

Hypothetical (5% return before expenses)

      1,000.00         1,022.40         0.49        2.46   

Emerging Markets Minimum Volatility

           

Actual

      1,000.00         1,111.10         0.25        1.31   

Hypothetical (5% return before expenses)

      1,000.00         1,023.60         0.25        1.25   

Emerging Markets Small Cap

           

Actual

      1,000.00         1,161.70         0.67        3.59   

Hypothetical (5% return before expenses)

      1,000.00         1,021.50         0.67        3.36   

Emerging Markets Value

           

Actual

      1,000.00         1,105.80         0.49        2.56   

Hypothetical (5% return before expenses)

      1,000.00         1,022.40         0.49        2.46   

 

a 

Expenses are calculated using the 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 (181 days) and divided by the number of days in the year (365 days).

 

 

16    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Consolidated Schedule of Investments  (Unaudited)

iSHARES® MSCI BRIC INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

COMMON STOCKS — 84.59%

  

BRAZIL — 14.33%

  

  

ALL — America Latina Logistica SA

     193,500      $ 959,132   

Amil Participacoes SA

     77,400        1,226,515   

Anhanguera Educacional Participacoes SA

     38,700        802,539   

Arteris SA

     77,400        833,858   

Banco Bradesco SA

     270,900        4,825,804   

Banco do Brasil SA

     277,189        3,692,862   

Banco Santander (Brasil) SA Units

     348,337        2,533,552   

BM&F Bovespa SA

     812,769        5,512,737   

BR Malls Participacoes SA

     193,500        2,505,488   

BR Properties SA

     77,400        963,047   

BRF — Brasil Foods SA

     309,600        6,725,669   

CCR SA

     387,000        3,885,464   

Centrais Eletricas Brasileiras SA

     116,100        408,120   

CETIP SA — Mercados Organizados

     77,878        941,421   

Cielo SA

     144,120        4,332,129   

Companhia de Bebidas das Americas

     77,400        3,417,251   

Companhia de Saneamento Basico do Estado de Sao Pauloa

     38,700        1,878,529   

Companhia de Saneamento de Minas Gerais SA

     38,700        1,004,153   

Companhia Hering SA

     77,400        1,503,684   

Companhia Siderurgica Nacional SA

     348,300        1,761,671   

Cosan SA Industria e Comercio

     77,400        1,826,657   

CPFL Energia SA

     116,100        1,185,017   

Cyrela Brazil Realty SA Empreendimentos e Participacoes

     116,100        1,021,769   

Diagnosticos da America SA

     116,100        801,560   

Duratex SA

     116,100        971,855   

EcoRodovias Infraestrutura e Logistica SA

     77,400        672,175   

EDP Energias do Brasil SA

     116,100        705,256   

Embraer SA

     270,900        2,290,955   

Fibria Celulose SAa

     116,141        1,317,608   

Hypermarcas SAa

     154,800        1,369,406   

JBS SAa

     193,552        671,573   

Kroton Educacional SAa

     38,700        1,013,940   

Light SA

     38,700        377,781   
Security   Shares     Value  
   

Localiza Rent A Car SA

     77,400      $ 1,469,625   

Lojas Americanas SA

     38,700        336,675   

Lojas Renner SA

     38,700        1,475,106   

MPX Energia SAa

     38,700        205,724   

MRV Engenharia e Participacoes SA

     154,800        994,365   

Multiplan Empreendimentos Imobiliarios SA

     38,700        1,108,874   

Multiplus SA

     38,700        721,306   

Natura Cosmeticos SA

     77,400        2,000,475   

Odontoprev SA

     116,100        537,897   

OGX Petroleo e Gas Participacoes SAa

     580,500        924,877   

Oi SA

     116,124        496,307   

PDG Realty SA Empreendimentos e Participacoes

     503,100        816,828   

Petroleo Brasileiro SA

     1,393,200        10,210,646   

Porto Seguro SA

     38,700        513,821   

Qualicorp SAa

     77,400        866,351   

Raia Drogasil SA

     77,450        893,940   

Souza Cruz SA

     154,800        2,473,386   

Sul America SA Units

     39,444        376,465   

TIM Participacoes SA

     387,069        1,693,464   

Totvs SA

     38,700        856,368   

Tractebel Energia SA

     77,400        1,370,189   

Ultrapar Participacoes SA

     154,800        4,016,610   

Vale SA

     619,200        11,838,430   

WEG SA

     77,400        1,037,037   
   

 

 

  
      111,173,943   

CHINA — 42.48%

  

  

Agile Property Holdings Ltd.

     774,000        1,000,081   

Agricultural Bank of China Ltd. Class H

     10,062,000        5,190,042   

Air China Ltd. Class H

     782,000        633,276   

Aluminum Corp. of China Ltd. Class Ha,b

     1,548,000        668,717   

Angang Steel Co. Ltd. Class Ha,b

     774,000        521,000   

Anhui Conch Cement Co. Ltd. Class H

     580,500        2,122,178   

Anta Sports Products Ltd.b

     387,040        366,335   

AviChina Industry & Technology Co. Ltd. Class H

     1,548,000        710,637   

Bank of China Ltd. Class H

     34,443,000        16,255,811   
 

 

CONSOLIDATED SCHEDULES OF INVESTMENTS

      17   

Table of Contents

Consolidated Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI BRIC INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Bank of Communications Co. Ltd. Class H

     3,483,200      $ 2,757,867   

BBMG Corp. Class H

     580,500        511,269   

Beijing Capital International Airport Co. Ltd. Class H

     774,000        608,832   

Beijing Enterprises Holdings Ltd.

     193,500        1,479,661   

Belle International Holdings Ltd.

     1,935,000        3,563,164   

Bosideng International Holdings Ltd.

     1,548,000        479,081   

Brilliance China Automotive Holdings Ltd.a

     774,000        1,067,951   

BYD Co. Ltd. Class Ha,b

     193,500        686,183   

China Agri-Industries Holdings Ltd.

     1,006,800        572,543   

China BlueChemical Ltd. Class H

     774,000        496,048   

China CITIC Bank Corp. Ltd. Class H

     3,483,000        2,236,709   

China Coal Energy Co. Class H

     1,935,000        1,918,819   

China Communications Construction Co. Ltd. Class H

     1,935,000        1,831,486   

China Communications Services Corp. Ltd. Class H

     924,800        578,384   

China Construction Bank Corp. Class H

     33,282,370        27,467,606   

China COSCO Holdings Co. Ltd. Class Ha,b

     1,161,000        622,805   

China Everbright Ltd.

     404,000        750,189   

China Gas Holdings Ltd.

     1,568,000        1,526,580   

China International Marine Containers (Group) Co. Ltd. Class Ha

     318,400        665,964   

China Life Insurance Co. Ltd. Class H

     3,483,000        10,464,922   

China Longyuan Power Group Corp. Ltd. Class H

     1,161,000        1,058,469   

China Mengniu Dairy Co. Ltd.b

     774,000        2,160,854   

China Merchants Bank Co. Ltd. Class H

     1,741,797        3,777,897   

China Merchants Holdings (International) Co. Ltd.b

     524,000        1,817,650   

China Minsheng Banking Corp. Ltd. Class H

     2,515,500        3,503,279   

China Mobile Ltd.

     2,759,000        30,401,175   

China National Building Material Co. Ltd. Class H

     1,548,000        2,363,465   
Security   Shares     Value  
   

China Oilfield Services Ltd. Class H

     774,000      $ 1,642,848   

China Overseas Land & Investment Ltd.

     1,548,800        4,703,410   

China Pacific Insurance (Group) Co. Ltd. Class H

     1,083,600        3,996,333   

China Petroleum & Chemical Corp. Class H

     8,514,000        9,683,421   

China Railway Construction Corp. Ltd. Class H

     967,500        1,014,304   

China Railway Group Ltd. Class H

     1,935,000        1,050,485   

China Resources Cement Holdings Ltd.b

     384,000        243,626   

China Resources Enterprise Ltd.b

     774,000        2,515,174   

China Resources Land Ltd.

     774,000        2,260,663   

China Resources Power Holdings Co. Ltd.

     808,200        2,183,381   

China Shanshui Cement Group Ltd.

     774,000        553,937   

China Shenhua Energy Co. Ltd. Class H

     1,548,000        5,868,740   

China Shipping Container Lines Co. Ltd. Class Ha,b

     1,548,000        459,119   

China Shipping Development Co. Ltd. Class H

     774,000        431,173   

China Southern Airlines Co. Ltd. Class H

     774,000        427,180   

China State Construction International Holdings Ltd.

     774,000        1,085,917   

China Taiping Insurance Holdings Co. Ltd.a

     384,000        766,529   

China Telecom Corp. Ltd. Class H

     6,192,000        3,209,842   

China Unicom (Hong Kong) Ltd.

     2,323,900        3,350,316   

China Vanke Co. Ltd. Class B

     653,201        1,326,643   

Chongqing Rural Commercial Bank Co. Ltd. Class H

     1,161,000        651,250   

CITIC Pacific Ltd.

     387,000        594,859   

CITIC Securities Co. Ltd. Class H

     387,000        976,127   

CNOOC Ltd.

     8,127,000        15,971,357   

COSCO Pacific Ltd.

     774,000        1,239,622   

Country Garden Holdings Co. Ltd.a

     2,039,356        1,046,653   

CSR Corp Ltd. Class H

     777,000        636,241   

Dah Chong Hong Holdings Ltd.

     387,000        397,737   

Daphne International Holdings Ltd.b

     488,000        587,122   
 

 

18    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Consolidated Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI BRIC INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Datang International Power Generation Co. Ltd. Class H

     1,548,000      $ 672,709   

Dongfang Electric Corp. Ltd. Class Hb

     154,800        291,042   

Dongfeng Motor Group Co. Ltd. Class H

     1,548,000        2,267,649   

ENN Energy Holdings Ltd.

     142,000        713,218   

Evergrande Real Estate Group Ltd.b

     3,096,000        1,529,066   

Far East Horizon Ltd.

     774,000        569,907   

Fosun International Ltd.

     774,000        504,033   

Franshion Properties (China) Ltd.b

     1,548,000        546,951   

GCL-Poly Energy Holdings Ltd.b

     3,483,000        929,716   

Geely Automobile Holdings Ltd.

     1,935,000        1,065,456   

Golden Eagle Retail Group Ltd.

     387,000        789,485   

GOME Electrical Appliances Holdings Ltd.a

     4,644,400        515,056   

Great Wall Motor Co. Ltd. Class H

     387,000        1,514,594   

Greentown China Holdings Ltd.a

     193,500        373,783   

Guangdong Investment Ltd.

     1,548,000        1,331,445   

Guangzhou Automobile Group Co. Ltd. Class H

     1,100,454        916,708   

Guangzhou R&F Properties Co. Ltd. Class H

     464,400        788,088   

Haier Electronics Group Co. Ltd.a

     387,000        698,660   

Haitong Securities Co. Ltd. Class Ha

     309,600        521,400   

Hengan International Group Co. Ltd.b

     387,000        3,927,465   

Huabao International Holdings Ltd.

     774,000        432,171   

Huaneng Power International Inc. Class H

     1,548,000        1,592,944   

Industrial and Commercial Bank of China Ltd. Class H

     29,799,050        21,403,471   

Inner Mongolia Yitai Coal Co. Ltd. Class B

     271,385        1,560,192   

Intime Department Store Group Co. Ltd.

     387,000        474,589   

Jiangsu Expressway Co. Ltd. Class H

     774,000        782,499   

Jiangxi Copper Co. Ltd. Class H

     774,000        1,854,442   

Kingboard Chemical Holdings Co. Ltd.

     193,500        590,118   

Kunlun Energy Co. Ltd.

     1,548,000        3,209,842   

Lee & Man Paper Manufacturing Ltd.

     774,000        579,887   
Security   Shares     Value  
   

Lenovo Group Ltd.

     3,096,000      $ 3,457,367   

Longfor Properties Co. Ltd.

     580,500        1,028,527   

New China Life Insurance Co. Ltd. Class H

     232,200        905,762   

Nine Dragons Paper (Holdings) Ltd.

     774,000        736,587   

Parkson Retail Group Ltd.

     387,000        251,517   

People’s Insurance Co. Group of China Ltd. Class Ha

     1,427,000        837,263   

PetroChina Co. Ltd. Class H

     10,062,000        13,831,463   

PICC Property and Casualty Co. Ltd. Class H

     1,557,200        2,236,949   

Ping An Insurance (Group) Co. of China Ltd. Class H

     967,500        8,096,965   

Poly Property Group Co. Ltd.a

     782,984        559,357   

Shandong Weigao Group Medical Polymer Co. Ltd. Class H

     880,000        818,172   

Shanghai Electric Group Co. Ltd. Class H

     1,548,000        628,794   

Shanghai Industrial Holdings Ltd.

     387,000        1,262,578   

Shanghai Pharmaceuticals Holding Co. Ltd. Class H

     270,900        583,381   

Shimao Property Holdings Ltd.

     580,500        1,167,759   

Shougang Fushan Resources Group Ltd.b

     1,548,000        682,690   

Shui On Land Ltd.

     1,354,500        627,047   

Sihuan Pharmaceutical Holdings Group Ltd.b

     774,000        359,311   

Sino-Ocean Land Holdings Ltd.

     1,354,500        936,204   

Sinopec Shanghai Petrochemical Co. Ltd. Class H

     774,000        339,349   

Sinopharm Group Co. Ltd. Class Hb

     309,600        978,123   

SOHO China Ltd.b

     967,500        752,307   

Sun Art Retail Group Ltd.

     1,161,000        1,616,898   

Tencent Holdings Ltd.

     464,400        16,061,185   

Tingyi (Cayman Islands) Holding Corp.

     774,000        2,031,103   

Uni-President China Holdings Ltd.b

     387,000        476,586   

Want Want China Holdings Ltd.b

     2,709,000        3,800,708   

Weichai Power Co. Ltd. Class Hb

     239,775        909,029   

Wumart Stores Inc. Class H

     387,000        758,545   

Yanzhou Coal Mining Co. Ltd. Class H

     774,000        1,199,698   
 

 

CONSOLIDATED SCHEDULES OF INVESTMENTS

      19   

Table of Contents

Consolidated Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI BRIC INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Yingde Gases Group Co. Ltd.

     470,500      $ 550,899   

Yuexiu Property Co. Ltd.

     2,346,000        810,755   

Zhaojin Mining Industry Co. Ltd. Class H

     387,000        510,021   

Zhejiang Expressway Co. Ltd. Class H

     774,000        649,753   

Zhongsheng Group Holdings Ltd.

     387,000        598,851   

Zhuzhou CSR Times Electric Co. Ltd. Class H

     387,000        1,280,044   

Zijin Mining Group Co. Ltd. Class H

     3,097,000        1,066,299   

Zoomlion Heavy Industry Science and Technology Co. Ltd. Class Hb

     645,600        852,492   

ZTE Corp. Class Hb

     309,640        528,654   
   

 

 

  
      329,436,516   

INDIA — 14.75%

  

  

ACC Ltd.

     25,336        592,617   

Adani Enterprises Ltd.

     96,327        381,820   

Adani Ports and Special Economic Zone Ltd.

     178,114        453,920   

Aditya Birla Nuvo Ltd.

     15,093        278,654   

Ambuja Cements Ltd.

     297,935        1,048,974   

Asian Paints Ltd.

     14,319        1,124,412   

Axis Bank Ltd.

     107,586        2,658,059   

Bajaj Auto Ltd.

     38,700        1,403,457   

Bank of Baroda

     32,121        410,715   

Bank of India

     43,614        254,926   

Bharat Heavy Electricals Ltd.

     270,900        1,001,591   

Bharat Petroleum Corp. Ltd.

     85,527        584,721   

Bharti Airtel Ltd.

     268,965        1,596,339   

Cairn India Ltd.

     200,466        1,097,856   

Canara Bank Ltd.

     40,805        311,710   

Cipla Ltd.

     166,410        1,100,683   

Coal India Ltd.

     231,813        1,320,020   

Dabur India Ltd.

     205,236        476,828   

Divi’s Laboratories Ltd.

     20,898        387,960   

DLF Ltd.

     197,757        1,008,141   

Dr. Reddy’s Laboratories Ltd.

     46,827        1,510,936   

GAIL (India) Ltd.

     179,955        1,099,973   

Godrej Consumer Products Ltd.

     58,050        773,520   

HCL Technologies Ltd.

     92,493        1,229,840   

HDFC Bank Ltd.

     710,547        8,167,274   

Hero Motocorp Ltd.

     18,576        569,333   

Hindalco Industries Ltd.

     473,688        861,093   
Security   Shares     Value  
   

Hindustan Unilever Ltd.

     408,590      $ 3,327,374   

Housing Development Finance Corp. Ltd.

     669,123        9,318,280   

ICICI Bank Ltd.

     199,305        3,811,358   

Idea Cellular Ltd.a

     317,585        686,481   

Infosys Ltd.

     196,596        10,504,633   

Infrastructure Development Finance Co. Ltd.

     487,233        1,337,081   

ITC Ltd.

     1,024,776        5,552,871   

Jaiprakash Associates Ltd.

     441,180        563,994   

Jindal Steel & Power Ltd.

     171,441        1,099,453   

JSW Steel Ltd.

     34,830        473,267   

Kotak Mahindra Bank Ltd.

     132,354        1,604,645   

Larsen & Toubro Ltd.

     96,363        2,422,669   

LIC Housing Finance Ltd.

     137,772        588,516   

Lupin Ltd.

     73,143        786,417   

Mahindra & Mahindra Ltd.

     142,416        2,287,085   

NTPC Ltd.

     270,126        749,233   

Oil & Natural Gas Corp. Ltd.

     330,111        1,901,908   

Piramal Enterprises Ltd.

     35,604        375,280   

Power Finance Corp. Ltd.

     115,713        428,460   

Power Grid Corp. of India Ltd.

     548,385        1,051,311   

Ranbaxy Laboratories Ltd.a

     61,146        425,117   

Reliance Capital Ltd.

     41,363        274,233   

Reliance Communications Ltd.

     214,011        240,150   

Reliance Industries Ltd.

     587,853        8,793,754   

Reliance Infrastructure Ltd.

     51,307        395,141   

Reliance Power Ltd.a

     272,257        359,807   

Rural Electrification Corp. Ltd.

     130,815        548,699   

Satyam Computer Services Ltd.a

     325,388        706,936   

Sesa Goa Ltd.

     157,509        448,309   

Shriram Transport Finance Co. Ltd.

     56,155        718,026   

Siemens Ltd.

     29,028        269,071   

State Bank of India

     61,920        2,368,336   

Sterlite Industries (India) Ltd.

     612,621        1,057,913   

Sun Pharmaceuticals Industries Ltd.

     145,899        2,151,142   

Tata Consultancy Services Ltd.

     216,720        6,042,905   

Tata Motors Ltd.

     303,408        1,603,620   

Tata Power Co. Ltd.

     489,168        848,772   

Tata Steel Ltd.

     137,385        862,365   

Titan Industries Ltd.

     99,459        476,957   

Ultratech Cement Ltd.

     17,290        593,669   

Unitech Ltd.a

     558,608        279,278   
 

 

20    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Consolidated Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI BRIC INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

United Breweries Ltd.

     27,477      $ 309,896   

United Spirits Ltd.

     40,378        1,365,675   

Wipro Ltd.

     230,652        1,765,343   

Zee Entertainment Enterprises Ltd.

     229,878        921,118   
   

 

 

  
      114,401,920   

RUSSIA — 13.03%

  

  

Federal Grid Co. of Unified Energy System OJSCa

     147,068,500        913,476   

Gazprom OAO

     4,833,638        21,702,103   

IDGC Holding JSCa

     7,938,800        497,818   

INTER RAO UES OJSCa

     580,500,000        409,729   

LSR Group OJSC SP GDRc

     92,902        440,727   

LUKOIL OAO

     231,426        14,844,768   

Magnit OJSC SP GDRc

     124,614        5,286,126   

Mechel OAO SP ADR

     62,307        342,066   

MegaFon OAO SP GDRa

     38,700        1,112,625   

MMC Norilsk Nickel OJSC

     21,285        3,758,633   

Mobile TeleSystems OJSC SP ADR

     240,327        4,972,366   

NovaTek OAO SP GDRc

     41,409        4,803,444   

Novolipetsk Steel OJSC SP GDRc

     28,638        549,563   

Rosneft Oil Co. OJSC

     576,632        4,597,771   

Rostelecom OJSC

     537,930        2,157,159   

RusHydro OJSC

     59,985,200        1,349,354   

Sberbank of Russia

     4,938,120        16,873,676   

Severstal OAO

     81,270        905,843   

Sistema JSFC SP GDRc

     58,050        1,141,263   

Surgutneftegas OJSC

     3,289,520        3,084,142   

Tatneft OAO, Class S

     638,553        4,179,447   

TMK OAO SP GDRc

     27,477        409,682   

Uralkali OJSC

     607,590        4,516,822   

VTB Bank OJSC

     1,192,006,001        2,176,586   
   

 

 

  
      101,025,189   
   

 

 

  

TOTAL COMMON STOCKS

  

  

(Cost: $649,514,597)

  

     656,037,568   

PREFERRED STOCKS — 15.14%

  

BRAZIL — 14.48%

  

  

AES Tiete SA

     38,700        399,116   

Banco Bradesco SA

     851,462        15,210,985   

Banco do Estado do Rio Grande do Sul SA Class B

     77,400        708,583   

Bradespar SA

     116,100        1,705,885   
Security   Shares     Value  
   

Braskem SA Class A

     77,400      $ 570,781   

Centrais Eletricas Brasileiras SA Class B

     116,182        736,899   

Companhia Brasileira de Distribuicao Grupo Pao de Acucar Class A

     38,956        1,954,598   

Companhia de Bebidas das Americas

     348,373        15,470,714   

Companhia Energetica de Minas Gerais

     204,241        2,420,397   

Companhia Energetica de Sao Paulo Class B

     77,400        717,979   

Companhia Paranaense de Energia Class B

     38,700        567,650   

Eletropaulo Metropolitana Eletricidade de Sao Paulo SA

     40,000        241,768   

Gerdau SA

     348,300        2,897,949   

Itau Unibanco Holding SA

     1,044,900        18,534,542   

Itausa — Investimentos Itau SA

     1,161,036        6,077,954   

Klabin SA

     193,500        1,302,658   

Lojas Americanas SA

     205,470        1,876,884   

Marcopolo SA

     117,900        790,135   

Metalurgica Gerdau SA

     116,100        1,230,234   

Oi SA

     387,099        1,439,066   

Petroleo Brasileiro SA

     1,896,314        15,931,301   

Telefonica Brasil SA

     155,264        4,094,616   

Usinas Siderurgicas de Minas Gerais SA Class A

     193,500        959,132   

Vale SA Class A

     890,100        16,454,987   
   

 

 

  
      112,294,813   

RUSSIA — 0.66%

    

AK Transneft OAO

     774        1,735,658   

Sberbank of Russia

     464,830        1,129,166   

Surgutneftegas OJSC

     3,096,000        2,279,410   
   

 

 

  
      5,144,234   
   

 

 

  

TOTAL PREFERRED STOCKS

  

  

(Cost: $109,827,032)

  

     117,439,047   
 

 

CONSOLIDATED SCHEDULES OF INVESTMENTS

      21   

Table of Contents

Consolidated Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI BRIC INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

RIGHTS — 0.00%

  

BRAZIL — 0.00%

  

  

Companhia de Bebidas das Americasa

     55      $ —   

Companhia de Bebidas das Americas Preferreda

     500        —   
   

 

 

  
      —   
   

 

 

  

TOTAL RIGHTS

    

(Cost: $0)

       —   

SHORT-TERM INVESTMENTS — 2.01%

  

MONEY MARKET FUNDS — 2.01%

  

  

BlackRock Cash Funds: Institutional,
SL Agency Shares

   

  

0.21%d,e,f

     1,036,627        1,036,627   

BlackRock Cash Funds: Prime,
SL Agency Shares

    

0.18%d,e,f

     14,317,400        14,317,400   

BlackRock Cash Funds: Treasury,
SL Agency Shares

    

0.04% d,e

     235,294        235,294   
   

 

 

  
      15,589,321   
   

 

 

  

TOTAL SHORT-TERM INVESTMENTS

  

  

(Cost: $15,589,321)

  

     15,589,321   
   

 

 

  

TOTAL INVESTMENTS
IN SECURITIES — 101.74%

    

(Cost: $774,930,950)

  

     789,065,936   

Other Assets, Less Liabilities — (1.74)%

  

     (13,491,275 ) 
   

 

 

  

NET ASSETS — 100.00%

  

   $ 775,574,661   
   

 

 

  

SP ADR  —  Sponsored American Depositary Receipts

SP GDR  —  Sponsored Global Depositary Receipts

 

a 

Non-income earning security.

b 

All or a portion of this security represents a security on loan. See Note 5.

c 

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

d 

Affiliated issuer. See Note 2.

e 

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

f 

All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to consolidated financial statements.

 

 

22    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Consolidated Schedule of Investments (Unaudited)

iSHARES® MSCI EMERGING MARKETS ASIA INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

COMMON STOCKS — 98.89%

  

CHINA — 30.26%

  

  

Agile Property Holdings Ltd.

     90,000      $ 116,289   

Agricultural Bank of China Ltd. Class H

     1,605,000        827,869   

Air China Ltd. Class H

     150,000        121,472   

Aluminum Corp. of China Ltd. Class Ha

     270,000        116,637   

Angang Steel Co. Ltd. Class Ha

     120,000        80,775   

Anhui Conch Cement Co. Ltd. Class H

     90,000        329,020   

Anta Sports Products Ltd.

     75,000        70,988   

AviChina Industry & Technology Co. Ltd. Class H

     180,000        82,632   

Bank of China Ltd. Class H

     5,505,000        2,598,155   

Bank of Communications Co. Ltd. Class H

     495,000        391,922   

BBMG Corp. Class H

     97,500        85,872   

Beijing Capital International Airport Co. Ltd. Class H

     150,000        117,991   

Beijing Enterprises Holdings Ltd.

     37,500        286,756   

Belle International Holdings Ltd.

     345,000        635,293   

Bosideng International Holdings Ltd.

     270,000        83,561   

Brilliance China Automotive Holdings Ltd.a

     180,000        248,361   

BYD Co. Ltd. Class Ha

     37,500        132,981   

China Agri-Industries Holdings Ltd.

     150,800        85,756   

China BlueChemical Ltd. Class H

     120,000        76,907   

China CITIC Bank Corp. Ltd. Class H

     570,000        366,042   

China Coal Energy Co. Class H

     315,000        312,366   

China Communications Construction Co. Ltd. Class H

     330,000        312,346   

China Communications Services Corp. Ltd. Class H

     180,000        112,575   

China Construction Bank Corp. Class H

     5,250,000        4,332,772   

China COSCO Holdings Co. Ltd. Class Ha

     172,500        92,536   

China Everbright Ltd.

     60,000        111,414   

China Foods Ltd.

     60,000        39,537   

China Gas Holdings Ltd.

     210,000        204,453   

China International Marine Containers (Group) Co. Ltd. Class Ha

     22,300        44,285   

China Life Insurance Co. Ltd. Class H

     555,000        1,667,537   

China Longyuan Power Group Corp. Ltd. Class H

     180,000        164,104   

China Mengniu Dairy Co. Ltd.

     75,000        209,385   
Security   Shares     Value  
   

China Merchants Bank Co. Ltd. Class H

     292,500      $ 634,422   

China Merchants Holdings (International) Co. Ltd.

     60,000        208,128   

China Minsheng Banking Corp. Ltd. Class H

     352,500        490,919   

China Mobile Ltd.

     435,000        4,793,226   

China National Building Material Co. Ltd. Class H

     210,000        320,625   

China Oilfield Services Ltd. Class H

     120,000        254,705   

China Overseas Land & Investment Ltd.

     300,000        911,043   

China Pacific Insurance (Group) Co. Ltd. Class H

     168,000        619,586   

China Petroleum & Chemical Corp. Class H

     1,410,000        1,603,667   

China Railway Construction Corp. Ltd. Class H

     142,500        149,394   

China Railway Group Ltd. Class H

     285,000        154,723   

China Resources Cement Holdings Ltd.

     150,000        95,166   

China Resources Enterprise Ltd.

     90,000        292,462   

China Resources Gas Group Ltd.

     60,000        139,113   

China Resources Land Ltd.

     150,000        438,113   

China Resources Power Holdings Co. Ltd.

     120,000        324,184   

China Shanshui Cement Group Ltd.

     120,000        85,882   

China Shenhua Energy Co. Ltd. Class H

     240,000        909,882   

China Shipping Container Lines Co. Ltd. Class Ha

     345,000        102,323   

China Shipping Development Co. Ltd. Class H

     120,000        66,848   

China Southern Airlines Co. Ltd. Class H

     150,000        82,787   

China State Construction International Holdings Ltd.

     120,000        168,359   

China Taiping Insurance Holdings Co. Ltd.a

     50,200        100,208   

China Telecom Corp. Ltd. Class H

     990,000        513,201   

China Unicom (Hong Kong) Ltd.

     330,000        475,754   

Chongqing Rural Commercial Bank Co. Ltd. Class H

     165,000        92,555   

CITIC Pacific Ltd.

     90,000        138,339   

CITIC Securities Co. Ltd. Class H

     67,500        170,255   

CNOOC Ltd.

     1,305,000        2,564,614   

COSCO Pacific Ltd.

     120,000        192,189   

Country Garden Holdings Co. Ltd.a

     301,964        154,976   
 

 

CONSOLIDATED SCHEDULES OF INVESTMENTS

      23   

Table of Contents

Consolidated Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS ASIA INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

CSR Corp Ltd. Class H

     135,000      $ 110,544   

Dah Chong Hong Holdings Ltd.

     60,000        61,665   

Daphne International Holdings Ltd.

     30,000        36,094   

Datang International Power Generation Co. Ltd. Class H

     240,000        104,296   

Dongfang Electric Corp. Ltd. Class H

     24,000        45,123   

Dongfeng Motor Group Co. Ltd. Class H

     210,000        307,627   

ENN Energy Holdings Ltd.

     60,000        301,360   

Evergrande Real Estate Group Ltd.

     435,000        214,840   

Far East Horizon Ltd.

     90,000        66,268   

Fosun International Ltd.

     135,000        87,913   

Franshion Properties (China) Ltd.

     240,000        84,799   

GCL-Poly Energy Holdings Ltd.

     510,000        136,134   

Geely Automobile Holdings Ltd.

     225,000        123,890   

Golden Eagle Retail Group Ltd.

     45,000        92,381   

GOME Electrical Appliances Holdings Ltd.a

     750,000        83,174   

Great Wall Motor Co. Ltd. Class H

     75,000        293,526   

Greentown China Holdings Ltd.a

     15,000        28,975   

Guangdong Investment Ltd.

     210,000        180,622   

Guangzhou Automobile Group Co. Ltd. Class H

     180,000        149,945   

Guangzhou R&F Properties Co. Ltd. Class H

     90,000        152,730   

Haier Electronics Group Co. Ltd.a

     75,000        135,399   

Haitong Securities Co. Ltd. Class Ha

     60,000        101,046   

Hengan International Group Co. Ltd.

     52,500        532,796   

Huabao International Holdings Ltd.

     150,000        83,754   

Huaneng Power International Inc. Class H

     240,000        246,968   

Industrial and Commercial Bank of China Ltd. Class H

     4,740,000        3,404,553   

Intime Department Store Group Co. Ltd.

     67,500        82,777   

Jiangsu Expressway Co. Ltd. Class H

     90,000        90,988   

Jiangxi Copper Co. Ltd. Class H

     105,000        251,572   

Kingboard Chemical Holdings Co. Ltd.

     45,000        137,237   

Kunlun Energy Co. Ltd.

     240,000        497,650   

Lee & Man Paper Manufacturing Ltd.

     120,000        89,905   

Lenovo Group Ltd.

     420,000        469,023   

Longfor Properties Co. Ltd.

     97,500        172,750   

MMG Ltd.a

     180,000        79,615   

New China Life Insurance Co. Ltd. Class H

     19,500        76,065   
Security   Shares     Value  
   

Nine Dragons Paper (Holdings) Ltd.

     120,000      $ 114,199   

Parkson Retail Group Ltd.

     105,000        68,241   

People’s Insurance Co. Group of China Ltd. Class Ha

     83,000        48,699   

PetroChina Co. Ltd. Class H

     1,500,000        2,061,935   

PICC Property and Casualty Co. Ltd. Class H

     210,000        301,669   

Ping An Insurance (Group) Co. of China Ltd. Class H

     135,000        1,129,809   

Poly Property Group Co. Ltd.a

     180,000        128,590   

Shandong Weigao Group Medical Polymer Co. Ltd. Class H

     120,000        111,569   

Shanghai Electric Group Co. Ltd. Class H

     210,000        85,301   

Shanghai Industrial Holdings Ltd.

     45,000        146,811   

Shanghai Pharmaceuticals Holding Co. Ltd. Class H

     42,000        90,447   

Shimao Property Holdings Ltd.

     112,500        226,310   

Shougang Fushan Resources Group Ltd.

     210,000        92,613   

Shui On Land Ltd.

     255,000        118,049   

Sihuan Pharmaceutical Holdings Group Ltd.

     105,000        48,744   

Sino-Ocean Land Holdings Ltd.

     232,500        160,699   

Sinopec Shanghai Petrochemical Co. Ltd. Class H

     240,000        105,224   

Sinopharm Group Co. Ltd. Class H

     60,000        189,559   

SOHO China Ltd.

     157,500        122,469   

Sun Art Retail Group Ltd.

     142,500        198,456   

Tencent Holdings Ltd.

     75,000        2,593,861   

Tingyi (Cayman Islands) Holding Corp.

     150,000        393,625   

Tsingtao Brewery Co. Ltd. Class H

     30,000        187,818   

Uni-President China Holdings Ltd.

     75,000        92,362   

Want Want China Holdings Ltd.

     450,000        631,347   

Weichai Power Co. Ltd. Class H

     30,800        116,768   

Wumart Stores Inc. Class H

     45,000        88,203   

Yanzhou Coal Mining Co. Ltd. Class H

     150,000        232,500   

Yingde Gases Group Co. Ltd.

     75,000        87,816   

Yuexiu Property Co. Ltd.

     510,000        176,251   

Zhaojin Mining Industry Co. Ltd. Class H

     60,000        79,073   

Zhejiang Expressway Co. Ltd. Class H

     150,000        125,921   

Zhongsheng Group Holdings Ltd.

     45,000        69,634   

Zhuzhou CSR Times Electric Co. Ltd. Class H

     30,000        99,228   
 

 

24    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Consolidated Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS ASIA INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Zijin Mining Group Co. Ltd. Class H

     450,000      $ 154,935   

Zoomlion Heavy Industry Science and Technology Co. Ltd. Class H

     93,000        122,803   

ZTE Corp. Class H

     45,000        76,829   
   

 

 

  
      51,698,608   

INDIA — 10.54%

  

  

ACC Ltd.

     3,960        92,626   

Adani Enterprises Ltd.

     15,915        63,084   

Adani Ports and Special Economic Zone Ltd.

     29,370        74,849   

Aditya Birla Nuvo Ltd.

     4,305        79,481   

Ambuja Cements Ltd.

     45,495        160,180   

Asian Paints Ltd.

     2,175        170,794   

Axis Bank Ltd.

     16,830        415,808   

Bajaj Auto Ltd.

     6,540        237,173   

Bank of Baroda

     3,060        39,127   

Bank of India

     11,295        66,020   

Bharat Heavy Electricals Ltd.

     42,900        158,613   

Bharat Petroleum Corp. Ltd.

     14,250        97,423   

Bharti Airtel Ltd.

     42,630        253,014   

Cairn India Ltd.

     31,770        173,989   

Canara Bank Ltd.

     8,580        65,543   

Cipla Ltd.

     24,270        160,529   

Coal India Ltd.

     39,675        225,922   

Dabur India Ltd.

     21,165        49,173   

Divi’s Laboratories Ltd.

     2,700        50,124   

DLF Ltd.

     27,885        142,154   

Dr. Reddy’s Laboratories Ltd.

     7,560        243,933   

GAIL (India) Ltd.

     28,740        175,673   

Godrej Consumer Products Ltd.

     7,515        100,138   

HCL Technologies Ltd.

     14,310        190,274   

HDFC Bank Ltd.

     110,685        1,272,252   

Hero Motocorp Ltd.

     3,060        93,785   

Hindalco Industries Ltd.

     75,300        136,884   

Hindustan Unilever Ltd.

     66,675        542,971   

Housing Development Finance Corp. Ltd.

     105,240        1,465,584   

ICICI Bank Ltd.

     31,860        609,266   

Idea Cellular Ltd.a

     49,125        106,187   

Infosys Ltd.

     31,275        1,671,104   

Infrastructure Development Finance Co. Ltd.

     67,050        184,001   

ITC Ltd.

     170,205        922,276   
Security   Shares     Value  
   

Jaiprakash Associates Ltd.

     63,420      $ 81,075   

Jindal Steel & Power Ltd.

     26,430        169,496   

JSW Steel Ltd.

     6,255        84,992   

Kotak Mahindra Bank Ltd.

     20,265        245,691   

Larsen & Toubro Ltd.

     15,360        386,167   

LIC Housing Finance Ltd.

     20,820        88,936   

Lupin Ltd.

     11,265        121,119   

Mahindra & Mahindra Ltd.

     22,875        367,354   

NTPC Ltd.

     44,265        122,775   

Oil & Natural Gas Corp. Ltd.

     59,055        340,241   

Power Finance Corp. Ltd.

     22,440        83,090   

Power Grid Corp. of India Ltd.

     84,015        161,065   

Ranbaxy Laboratories Ltd.a

     9,225        64,137   

Reliance Capital Ltd.

     6,450        42,763   

Reliance Communications Ltd.

     48,315        54,216   

Reliance Industries Ltd.

     89,445        1,338,017   

Reliance Infrastructure Ltd.

     9,270        71,393   

Reliance Power Ltd.a

     44,775        59,173   

Rural Electrification Corp. Ltd.

     19,920        83,554   

Satyam Computer Services Ltd.a

     45,576        99,018   

Sesa Goa Ltd.

     21,285        60,582   

Shriram Transport Finance Co. Ltd.

     8,835        112,969   

Siemens Ltd.

     5,340        49,498   

State Bank of India

     9,495        363,168   

Sterlite Industries (India) Ltd.

     88,575        152,957   

Sun Pharmaceuticals Industries Ltd.

     23,280        343,241   

Tata Consultancy Services Ltd.

     33,450        932,702   

Tata Motors Ltd.

     52,140        275,579   

Tata Power Co. Ltd.

     69,255        120,167   

Tata Steel Ltd.

     20,850        130,875   

Titan Industries Ltd.

     20,970        100,562   

Ultratech Cement Ltd.

     2,565        88,072   

Unitech Ltd.a

     160,290        80,138   

United Breweries Ltd.

     4,185        47,200   

United Spirits Ltd.

     5,760        194,816   

Wipro Ltd.

     35,775        273,811   

Zee Entertainment Enterprises Ltd.

     30,120        120,690   
   

 

 

  
      18,001,253   

INDONESIA — 4.86%

  

  

PT Adaro Energy Tbk

     1,057,500        171,809   

PT Astra Agro Lestari Tbk

     30,000        57,277   

PT Astra International Tbk

     1,410,000        1,159,983   
 

 

CONSOLIDATED SCHEDULES OF INVESTMENTS

      25   

Table of Contents

Consolidated Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS ASIA INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

PT Bank Central Asia Tbk

     922,500      $ 1,050,085   

PT Bank Danamon Indonesia Tbk

     240,000        156,465   

PT Bank Mandiri (Persero) Tbk

     690,000        717,597   

PT Bank Negara Indonesia (Persero) Tbk

     547,500        260,620   

PT Bank Rakyat Indonesia (Persero) Tbk

     765,000        748,098   

PT Bukit Asam (Persero) Tbk

     60,000        93,755   

PT Bumi Resources Tbk

     1,147,500        97,372   

PT Charoen Pokphand Indonesia Tbk

     532,500        242,459   

PT Global Mediacom Tbk

     427,500        101,749   

PT Gudang Garam Tbk

     37,500        187,432   

PT Indo Tambangraya Megah Tbk

     30,000        124,955   

PT Indocement Tunggal Prakarsa Tbk

     105,000        238,500   

PT Indofood Sukses Makmur Tbk

     315,000        237,957   

PT Indosat Tbk

     127,500        83,782   

PT Jasa Marga (Persero) Tbk

     97,500        55,997   

PT Kalbe Farma Tbk

     1,650,000        220,262   

PT Media Nusantara Citra Tbk

     277,500        84,713   

PT Perusahaan Gas Negara (Persero) Tbk

     795,000        394,888   

PT Semen Gresik (Persero) Tbk

     217,500        390,503   

PT Telekomunikasi Indonesia (Persero) Tbk

     750,000        834,325   

PT Unilever Indonesia Tbk

     112,500        266,014   

PT United Tractors Tbk

     120,000        239,665   

PT XL Axiata Tbk

     150,000        84,597   
   

 

 

  
      8,300,859   

MALAYSIA — 5.51%

  

  

AirAsia Bhd

     88,500        83,331   

Alliance Financial Group Bhd

     64,500        89,951   

AMMB Holdings Bhd

     120,000        245,397   

Axiata Group Bhd

     189,000        391,393   

Berjaya Sports Toto Bhd

     57,168        77,692   

British American Tobacco (Malaysia) Bhd

     7,500        148,034   

Bumi Armada Bhda

     61,500        75,420   

CIMB Group Holdings Bhd

     379,500        884,129   

DiGi.Com Bhd

     228,000        337,149   

Felda Global Ventures Holdings Bhd

     79,500        115,501   

Gamuda Bhd

     14,600        18,141   

Genting Bhd

     150,000        460,605   

Genting Malaysia Bhd

     216,000        258,599   

Genting Plantations Bhd

     16,500        45,221   

Hong Leong Bank Bhd

     42,000        198,143   
Security   Shares     Value  
   

Hong Leong Financial Group Bhd

     21,000      $ 97,441   

IHH Healthcare Bhda

     148,500        164,813   

IJM Corp. Bhd

     10,400        17,263   

IOI Corp. Bhd

     234,000        371,008   

Kuala Lumpur Kepong Bhd

     36,000        241,592   

Lafarge Malayan Cement Bhd

     34,500        108,953   

Malayan Banking Bhd

     321,000        950,380   

Malaysia Airports Holdings Bhd

     40,500        71,683   

Malaysia Marine and Heavy Engineering Holdings Bhd

     42,000        55,040   

Maxis Communications Bhd

     166,500        343,182   

MISC Bhda

     84,000        143,239   

MMC Corp. Bhd

     94,500        76,750   

Parkson Holdings Bhd

     42,000        62,650   

Petronas Chemicals Group Bhd

     175,500        360,597   

Petronas Dagangan Bhd

     19,500        148,403   

Petronas Gas Bhd

     43,500        257,861   

PPB Group Bhd

     34,500        138,201   

Public Bank Bhd Foreign

     84,000        437,599   

RHB Capital Bhd

     58,500        148,592   

Sapurakencana Petroleum Bhda

     150,000        140,754   

Sime Darby Bhd

     201,000        599,000   

Telekom Malaysia Bhd

     75,000        129,105   

Tenaga Nasional Bhd

     199,500        447,995   

UEM Land Holdings Bhda

     108,000        80,026   

UMW Holdings Bhd

     36,000        149,102   

YTL Corp. Bhd

     307,553        164,201   

YTL Power International Bhd

     142,500        70,086   
   

 

 

  
      9,404,222   

PHILIPPINES — 1.72%

  

  

Aboitiz Equity Ventures Inc.

     141,000        203,212   

Aboitiz Power Corp.

     136,500        129,249   

Alliance Global Group Inc.

     304,500        149,779   

Ayala Corp.

     11,700        166,752   

Ayala Land Inc.

     357,000        280,964   

Bank of the Philippine Islands

     58,350        152,118   

BDO Unibank Inc.a

     88,510        215,506   

DMCI Holdings Inc.

     60,000        78,947   

Energy Development Corp.

     532,500        99,271   

Globe Telecom Inc.

     1,800        49,803   

International Container Terminal Services Inc.

     61,500        124,029   

Jollibee Foods Corp.

     36,000        112,356   
 

 

26    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Consolidated Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS ASIA INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Metropolitan Bank & Trust Co.

     29,100      $ 81,589   

Philippine Long Distance Telephone Co.

     3,150        226,217   

San Miguel Corp.

     31,743        96,728   

SM Investments Corp.

     15,300        392,848   

SM Prime Holdings Inc.

     469,650        219,463   

Universal Robina Corp.

     66,000        153,881   
   

 

 

  
      2,932,712   

SOUTH KOREA — 24.03%

  

  

AmorePacific Corp.

     240        226,962   

AmorePacific Group

     180        70,150   

BS Financial Group Inc.

     1,800        26,015   

Celltrion Inc.

     9,061        224,679   

Cheil Industries Inc.

     440        35,840   

Cheil Worldwide Inc.a

     6,750        149,609   

CJ CheilJedang Corp.

     585        208,808   

CJ Corp.

     1,155        159,465   

Coway Co. Ltd.a

     4,200        193,355   

Daelim Industrial Co. Ltd.

     1,632        145,743   

Daewoo Engineering & Construction Co. Ltd.a

     9,450        79,330   

Daewoo International Corp.

     3,450        122,187   

Daewoo Securities Co. Ltd.

     15,150        171,392   

Daewoo Shipbuilding & Marine Engineering Co. Ltd.

     7,650        212,299   

DGB Financial Group Inc.

     900        13,506   

Dongbu Insurance Co. Ltd.

     3,750        164,327   

Doosan Corp.

     705        83,989   

Doosan Heavy Industries & Construction Co. Ltd.

     4,062        164,494   

Doosan Infracore Co. Ltd.a

     9,300        135,701   

E-Mart Co. Ltd.

     1,650        336,758   

GS Engineering & Construction Corp.

     3,120        157,898   

GS Holdings Corp.

     3,795        244,630   

Hana Financial Group Inc.

     2,270        84,693   

Hankook Tire Co. Ltd.

     5,558        253,050   

Hanwha Chemical Corp.

     7,500        137,834   

Hanwha Corp.

     4,050        130,534   

Hanwha Life Insurance Co. Ltd.

     17,850        119,349   

Hyosung Corp.

     2,025        105,661   

Hyundai Department Store Co. Ltd.

     1,185        165,248   

Hyundai Development Co.

     5,100        116,570   

Hyundai Engineering & Construction Co. Ltd.

     5,085        321,210   
Security   Shares     Value  
   

Hyundai Glovis Co. Ltd.

     975      $ 185,037   

Hyundai Heavy Industries Co. Ltd.

     3,180        629,936   

Hyundai Hysco Co. Ltd.

     2,250        75,012   

Hyundai Marine & Fire Insurance Co. Ltd.

     5,700        165,553   

Hyundai Merchant Marine Co. Ltd.a

     5,107        83,951   

Hyundai Mipo Dockyard Co. Ltd.

     930        101,346   

Hyundai Mobis Co. Ltd.

     5,010        1,448,184   

Hyundai Motor Co.

     11,175        2,249,810   

Hyundai Securities Co. Ltd.

     14,100        116,152   

Hyundai Steel Co.

     4,215        331,260   

Hyundai Wia Corp.

     1,140        167,395   

Industrial Bank of Korea

     20,550        248,614   

Kangwon Land Inc.

     7,350        222,979   

KB Financial Group Inc.

     26,610        970,697   

KCC Corp.

     375        98,700   

Kia Motors Corp.

     19,680        1,015,965   

Korea Aerospace Industries Ltd.

     2,850        63,958   

Korea Electric Power Corp.a

     19,200        578,930   

Korea Exchange Banka

     32,550        228,458   

Korea Gas Corp.

     1,650        108,951   

Korea Investment Holdings Co. Ltd.

     3,750        159,479   

Korea Zinc Co. Ltd.

     615        213,552   

Korean Air Lines Co. Ltd.a

     3,150        128,580   

KT Corp. SP ADRa

     4,775        77,259   

KT&G Corp.

     8,025        572,142   

Kumho Petro Chemical Co. Ltd.

     1,095        110,731   

LG Chem Ltd.

     3,405        932,360   

LG Corp.

     7,155        435,448   

LG Display Co. Ltd.a

     17,100        482,446   

LG Electronics Inc.

     8,010        579,210   

LG Household & Health Care Ltd.

     705        404,317   

LG Innotek Co. Ltd.a

     855        59,773   

LG Uplus Corp.a

     16,800        131,877   

Lotte Chemical Corp.

     1,306        287,053   

Lotte Confectionery Co. Ltd.

     60        101,346   

Lotte Shopping Co. Ltd.

     840        301,766   

LS Corp.

     1,470        118,786   

LS Industrial Systems Co. Ltd.

     1,350        83,282   

Mando Corp.

     1,065        128,844   

Mirae Asset Securities Co. Ltd.

     2,850        114,361   

NCsoft Corp.

     1,200        158,474   

NHN Corp.

     2,964        719,906   
 

 

CONSOLIDATED SCHEDULES OF INVESTMENTS

      27   

Table of Contents

Consolidated Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS ASIA INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

OCI Co. Ltd.

     1,260      $ 201,889   

ORION Corp.

     270        266,802   

POSCO

     4,725        1,542,528   

S-Oil Corp.

     3,375        311,373   

S1 Corp.

     1,545        99,164   

Samsung C&T Corp.

     9,315        569,485   

Samsung Card Co. Ltd.

     4,500        161,868   

Samsung Electro-Mechanics Co. Ltd.

     4,425        390,264   

Samsung Electronics Co. Ltd.

     8,025        11,442,846   

Samsung Engineering Co. Ltd.

     2,310        328,530   

Samsung Fire & Marine Insurance Co. Ltd.

     2,835        596,939   

Samsung Heavy Industries Co. Ltd.

     12,000        428,324   

Samsung Life Insurance Co. Ltd.

     5,160        495,593   

Samsung SDI Co. Ltd.

     2,535        325,413   

Samsung Securities Co. Ltd.

     4,433        234,991   

Samsung Techwin Co. Ltd.

     3,090        186,058   

Shinhan Financial Group Co. Ltd.

     4,180        164,641   

Shinsegae Co. Ltd.

     600        125,505   

SK C&C Co. Ltd.

     1,695        161,231   

SK Holdings Co. Ltd.

     1,995        324,263   

SK Hynix Inc.a

     37,500        917,738   

SK Innovation Co. Ltd.

     4,470        734,800   

SK Networks Co. Ltd.

     13,350        98,508   

SK Telecom Co. Ltd.

     765        126,108   

Woori Finance Holdings Co. Ltd.

     33,000        400,757   

Woori Investment & Securities Co. Ltd.

     12,750        150,128   

Yuhan Corp.

     660        108,799   
   

 

 

  
      41,047,711   

TAIWAN — 17.55%

  

  

Acer Inc.a

     180,000        160,484   

Advanced Semiconductor Engineering Inc.

     450,434        373,508   

Advantech Co. Ltd.

     30,000        133,484   

Asia Cement Corp.

     135,540        169,045   

ASUSTeK Computer Inc.

     45,000        546,071   

AU Optronics Corp.a

     540,000        234,810   

Capital Securities Corp.

     210,000        79,635   

Catcher Technology Co. Ltd.

     45,000        203,260   

Cathay Financial Holding Co. Ltd.

     511,300        648,033   

Chailease Holding Co. Ltd.

     45,000        126,203   

Chang Hwa Commercial Bank Ltd.

     315,800        184,691   

Cheng Shin Rubber Industry Co. Ltd.

     135,240        367,429   
Security   Shares     Value  
   

Cheng Uei Precision Industry Co. Ltd.

     30,059      $ 56,842   

Chicony Electronics Co. Ltd.

     30,280        79,307   

China Airlines Ltd.a

     180,000        74,023   

China Development Financial Holding Corp.a

     991,200        295,023   

China Life Insurance Co. Ltd.a

     120,479        115,336   

China Petrochemical Development Corp.

     135,800        83,998   

China Steel Corp.

     826,650        757,922   

Chinatrust Financial Holding Co. Ltd.

     811,002        479,770   

Chunghwa Telecom Co. Ltd.

     270,000        839,128   

Clevo Co.

     30,322        42,570   

Compal Electronics Inc.

     300,000        209,833   

CTCI Corp.

     30,000        59,764   

Delta Electronics Inc.

     135,000        502,840   

E Ink Holdings Inc.

     60,000        46,012   

E.Sun Financial Holding Co. Ltd.

     271,800        162,623   

Epistar Corp.

     60,000        116,495   

Eternal Chemical Co. Ltd.

     105,000        91,846   

EVA Airways Corp.a

     135,000        84,868   

Evergreen Marine Corp. Ltd.a

     165,000        105,397   

Far Eastern Department Stores Co. Ltd.

     60,320        57,033   

Far Eastern New Century Corp.

     210,840        233,821   

Far EasTone Telecommunications Co. Ltd.

     120,000        277,889   

Farglory Land Development Co. Ltd.

     45,000        85,399   

Feng Hsin Iron & Steel Co. Ltd.

     30,000        52,281   

First Financial Holding Co. Ltd.

     451,360        287,553   

Formosa Chemicals & Fibre Corp.

     225,000        573,374   

Formosa Petrochemical Corp.

     90,000        250,282   

Formosa Plastics Corp.

     300,000        758,431   

Formosa Taffeta Co. Ltd.

     90,000        87,220   

Foxconn Technology Co. Ltd.

     45,300        124,448   

Fubon Financial Holding Co. Ltd.

     375,396        506,155   

Giant Manufacturing Co. Ltd.

     30,000        164,327   

Highwealth Construction Corp.

     16,200        33,856   

Hiwin Technologies Corp.

     15,100        124,703   

Hon Hai Precision Industry Co. Ltd.

     721,000        1,985,597   

Hotai Motor Co. Ltd.

     15,000        114,270   

HTC Corp.

     60,000        560,228   

Hua Nan Financial Holdings Co. Ltd.

     375,300        219,488   

Innolux Corp.a

     376,019        207,868   

Inventec Corp.

     210,980        83,918   

Kinsus Interconnect Technology Corp.

     15,000        47,276   
 

 

28    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Consolidated Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS ASIA INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

LCY Chemical Corp.

     30,199      $ 38,479   

Lite-On Technology Corp.

     150,100        231,476   

Macronix International Co. Ltd.

     240,139        68,400   

MediaTek Inc.

     90,000        1,011,747   

Mega Financial Holding Co. Ltd.

     586,170        483,099   

Merida Industry Co. Ltd.

     15,000        73,062   

MStar Semiconductor Inc.

     15,000        112,753   

Nan Kang Rubber Tire Co. Ltd.

     61,879        71,439   

Nan Ya Plastics Corp.

     345,000        661,706   

Novatek Microelectronics Corp. Ltd.

     30,000        125,394   

Pegatron Corp.a

     120,000        161,799   

Phison Electronics Corp.

     15,000        112,753   

Pou Chen Corp.

     135,000        136,973   

Powertech Technology Inc.

     45,000        65,453   

President Chain Store Corp.

     45,000        248,765   

Quanta Computer Inc.

     180,000        384,070   

Radiant Opto-Electronics Corp.

     30,120        108,636   

Realtek Semiconductor Corp.

     30,040        71,489   

Richtek Technology Corp.

     15,000        91,770   

Ruentex Development Co. Ltd.

     45,000        98,444   

Ruentex Industries Ltd.

     45,000        108,304   

Shin Kong Financial Holding Co. Ltd.a

     450,000        136,366   

Siliconware Precision Industries Co. Ltd.

     210,000        225,456   

Simplo Technology Co. Ltd.

     15,200        67,376   

SinoPac Financial Holdings Co. Ltd.

     406,706        185,075   

Standard Foods Corp.

     15,480        44,927   

Synnex Technology International Corp.

     90,000        182,024   

Taishin Financial Holdings Co. Ltd.

     540,298        220,370   

Taiwan Business Bank Ltd.a

     256,360        80,019   

Taiwan Cement Corp.

     240,000        307,822   

Taiwan Cooperative Financial Holding Co. Ltd.

     391,265        224,209   

Taiwan Fertilizer Co. Ltd.

     45,000        109,062   

Taiwan Glass Industry Corp.

     75,450        71,339   

Taiwan Mobile Co. Ltd.

     120,000        418,654   

Taiwan Semiconductor Manufacturing Co. Ltd.

     1,815,000        6,393,322   

Teco Electric and Machinery Co. Ltd.

     135,000        107,849   

TPK Holding Co. Ltd.

     15,591        295,355   

Tripod Technology Corp.

     30,000        62,191   

TSRC Corp.

     45,600        93,762   

Tung Ho Steel Enterprise Corp.

     90,000        87,978   

U-Ming Marine Transport Corp.

     30,000        46,517   
Security   Shares     Value  
   

Uni-President Enterprises Co.

     300,660      $ 562,474   

Unimicron Technology Corp.

     90,000        85,551   

United Microelectronics Corp.

     900,000        336,743   

Walsin Lihwa Corp.a

     255,000        87,675   

Wan Hai Lines Ltd.a

     30,000        16,230   

Wintek Corp.a

     105,000        49,551   

Wistron Corp.

     135,900        151,171   

WPG Holdings Co. Ltd.

     90,000        102,237   

Yang Ming Marine Transport Corp.a

     120,000        56,832   

Yuanta Financial Holding Co. Ltd.

     585,000        302,690   

Yulon Motor Co. Ltd.

     60,000        107,394   

Zhen Ding Technology Holding Ltd.

     15,100        34,255   
   

 

 

  
      29,984,154   

THAILAND — 4.42%

  

  

Advanced Information Service PCL NVDR

     82,500        574,034   

Airports of Thailand PCL NVDR

     31,500        124,941   

Bangkok Bank PCL Foreign

     60,000        467,899   

Bangkok Bank PCL NVDR

     37,500        276,050   

Bangkok Dusit Medical Services PCL NVDR

     21,000        105,176   

Bank of Ayudhya PCL NVDR

     171,000        198,303   

Banpu PCL NVDR

     10,500        138,000   

BEC World PCL NVDR

     64,500        145,803   

Central Pattana PCL NVDR

     48,000        154,891   

Charoen Pokphand Foods PCL NVDR

     231,000        252,353   

CP All PCL NVDR

     306,000        486,000   

Glow Energy PCL NVDR

     42,000        121,412   

Indorama Ventures PCL NVDR

     106,500        85,200   

IRPC PCL NVDR

     739,500        105,891   

Kasikornbank PCL Foreign

     87,000        637,513   

Kasikornbank PCL NVDR

     45,000        320,672   

Krung Thai Bank PCL NVDR

     264,050        226,329   

PTT Exploration & Production PCL NVDR

     105,110        558,231   

PTT Global Chemical PCL NVDR

     112,500        298,739   

PTT PCL NVDR

     63,000        741,176   

Siam Cement PCL Foreign

     22,500        360,000   

Siam Cement PCL NVDR

     10,500        163,765   

Siam Commercial Bank PCL NVDR

     129,000        771,832   

Siam Makro PCL NVDR

     6,000        97,613   
 

 

CONSOLIDATED SCHEDULES OF INVESTMENTS

      29   

Table of Contents

Consolidated Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS ASIA INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Thai Oil PCL NVDR

     61,500      $ 144,706   
   

 

 

  
      7,556,529   
   

 

 

  

TOTAL COMMON STOCKS

  

  

(Cost: $168,839,011)

  

     168,926,048   

PREFERRED STOCKS — 0.96%

    

SOUTH KOREA — 0.96%

    

Hyundai Motor Co. Ltd.

     2,115        141,414   

Hyundai Motor Co. Ltd. Series 2

     3,000        215,824   

LG Chem Ltd.

     780        69,080   

Samsung Electronics Co. Ltd.

     1,485        1,206,843   
   

 

 

  
      1,633,161   
   

 

 

  

TOTAL PREFERRED STOCKS

  

  

(Cost: $1,572,032)

  

     1,633,161   

SHORT-TERM INVESTMENTS — 0.17%

  

MONEY MARKET FUNDS — 0.17%

  

  

BlackRock Cash Funds: Treasury,
SL Agency Shares

    

0.04%b,c

     299,230        299,230   
   

 

 

  
      299,230   
   

 

 

  

TOTAL SHORT-TERM INVESTMENTS

  

  

(Cost: $299,230)

  

     299,230   
   

 

 

  

TOTAL INVESTMENTS
IN SECURITIES — 100.02%

   

  

(Cost: $170,710,273)

  

     170,858,439   

Other Assets, Less Liabilities — (0.02)%

  

     (34,798 ) 
   

 

 

  

NET ASSETS — 100.00%

  

   $ 170,823,641   
   

 

 

  

NVDR  —  Non-Voting Depositary Receipts

SP ADR  —  Sponsored American Depositary Receipts

 

a 

Non-income earning security.

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 consolidated financial statements.

 

 

30    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Consolidated Schedule of Investments (Unaudited)

iSHARES® MSCI EMERGING MARKETS CONSUMER DISCRETIONARY SECTOR INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

COMMON STOCKS — 97.03%

  

BRAZIL — 6.59%

  

  

Anhanguera Educacional Participacoes SA

     1,002      $ 20,779   

Companhia Hering SA

     1,200        23,313   

Cyrela Brazil Realty SA Empreendimentos e Participacoes

     2,400        21,122   

Kroton Educacional SAa

     800        20,960   

Lojas Americanas SA

     1,100        9,570   

Lojas Renner SA

     1,102        42,004   

MRV Engenharia e Participacoes SA

     2,702        17,356   

PDG Realty SA Empreendimentos e Participacoes

     10,502        17,051   
   

 

 

  
      172,155   

CHILE — 1.87%

  

  

S.A.C.I. Falabella SA

     4,192        48,923   
   

 

 

  
      48,923   

CHINA — 12.14%

  

  

Anta Sports Products Ltd.b

     8,002        7,574   

Belle International Holdings Ltd.

     40,001        73,659   

Bosideng International Holdings Ltd.

     24,000        7,428   

Brilliance China Automotive Holdings Ltd.a

     22,000        30,355   

BYD Co. Ltd. Class Ha,b

     4,500        15,958   

Dah Chong Hong Holdings Ltd.

     7,001        7,195   

Daphne International Holdings Ltd.b

     8,001        9,626   

Dongfeng Motor Group Co. Ltd. Class H

     24,001        35,159   

Geely Automobile Holdings Ltd.

     35,001        19,272   

Golden Eagle Retail Group Ltd.

     6,000        12,318   

GOME Electrical Appliances Holdings Ltd.a

     88,000        9,759   

Great Wall Motor Co. Ltd. Class H

     9,002        35,231   

Guangzhou Automobile Group Co. Ltd. Class H

     18,001        14,995   

Haier Electronics Group Co. Ltd.a

     7,001        12,639   

Intime Department Store Group Co. Ltd.

     8,501        10,425   

Parkson Retail Group Ltd.

     12,501        8,125   

Zhongsheng Group Holdings Ltd.

     5,000        7,737   
   

 

 

  
      317,455   

INDIA — 5.35%

  

  

Bajaj Auto Ltd.

     728        26,401   

Hero Motocorp Ltd.

     342        10,482   

Mahindra & Mahindra Ltd.

     2,667        42,830   

Tata Motors Ltd.

     6,557        34,656   
Security   Shares     Value  
   

Titan Industries Ltd.

     1,851      $ 8,876   

Zee Entertainment Enterprises Ltd.

     4,126        16,533   
   

 

 

  
      139,778   

INDONESIA — 6.35%

  

  

PT Astra International Tbk

     172,500        141,913   

PT Global Mediacom Tbk

     54,000        12,853   

PT Media Nusantara Citra Tbk

     36,500        11,142   
   

 

 

  
      165,908   

MALAYSIA — 4.48%

  

  

Berjaya Sports Toto Bhd

     6,032        8,197   

Genting Bhd

     17,400        53,430   

Genting Malaysia Bhd

     25,001        29,932   

Parkson Holdings Bhd

     4,601        6,863   

UMW Holdings Bhd

     4,501        18,642   
   

 

 

  
      117,064   

MEXICO — 5.21%

  

  

El Puerto de Liverpool SA de CV Series C1

     1,601        18,044   

Grupo Televisa SAB de CV CPO

     22,002        118,103   
   

 

 

  
      136,147   

PHILIPPINES — 0.43%

  

  

Jollibee Foods Corp.

     3,611        11,270   
   

 

 

  
      11,270   

POLAND — 0.33%

  

  

Cyfrowy Polsat SAa

     1,657        8,560   
   

 

 

  
      8,560   

SOUTH AFRICA — 15.93%

  

  

Foschini Group Ltd. (The)

     1,762        21,022   

Imperial Holdings Ltd.

     1,551        35,780   

Mr. Price Group Ltd.

     2,057        26,549   

Naspers Ltd. Class N

     3,349        217,534   

Steinhoff International Holdings Ltd.a

     9,989        29,023   

Truworths International Ltd.

     3,807        39,480   

Woolworths Holdings Ltd.

     6,533        47,064   
   

 

 

  
      416,452   

SOUTH KOREA — 30.95%

  

  

Cheil Worldwide Inc.a

     780        17,288   

Coway Co. Ltd.a

     471        21,683   

Hankook Tire Co. Ltd.

     644        29,321   

Hyundai Department Store Co. Ltd.

     132        18,407   

Hyundai Mobis Co. Ltd.

     583        168,521   

Hyundai Motor Co.

     1,321        265,951   
 

 

CONSOLIDATED SCHEDULES OF INVESTMENTS

      31   

Table of Contents

Consolidated Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS CONSUMER DISCRETIONARY SECTOR INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Hyundai Wia Corp.

     134      $ 19,676   

Kangwon Land Inc.

     842        25,544   

Kia Motors Corp.

     2,255        116,413   

LG Electronics Inc.

     907        65,586   

Lotte Shopping Co. Ltd.

     95        34,128   

Mando Corp.

     111        13,429   

Shinsegae Co. Ltd.

     62        12,969   
   

 

 

  
      808,916   

TAIWAN — 5.65%

  

  

Cheng Shin Rubber Industry Co. Ltd.

     15,960        43,361   

China Motor Co. Ltd.

     5,002        4,670   

Far Eastern Department Stores Co. Ltd.

     8,320        7,867   

Formosa International Hotels Corp.

     1        12   

Formosa Taffeta Co. Ltd.

     7,002        6,786   

Giant Manufacturing Co. Ltd.

     2,001        10,960   

Hotai Motor Co. Ltd.

     2,001        15,244   

Merida Industry Co. Ltd.

     2,000        9,742   

Nan Kang Rubber Tire Co. Ltd.

     4,939        5,702   

Pou Chen Corp.

     19,000        19,278   

Ruentex Industries Ltd.

     4,000        9,627   

Yulon Motor Co. Ltd.

     8,001        14,321   
   

 

 

  
      147,570   

THAILAND — 0.73%

  

  

BEC World PCL NVDR

     8,501        19,217   
   

 

 

  
      19,217   

TURKEY — 1.02%

  

  

Arcelik AS

     2,053        13,012   

Ford Otomotiv Sanayi AS

     600        7,072   

Tofas Turk Otomobil Fabrikasi AS

     1,081        6,701   
   

 

 

  
      26,785   
   

 

 

  

TOTAL COMMON STOCKS

  

  

(Cost: $2,421,846)

  

     2,536,200   

PREFERRED STOCKS — 2.65%

  

BRAZIL — 1.22%

  

  

Lojas Americanas SA

     3,501        31,980   
   

 

 

  
      31,980   

SOUTH KOREA — 1.43%

  

  

Hyundai Motor Co. Ltd.

     207        13,841   
Security   Shares     Value  
   

Hyundai Motor Co. Ltd. Series 2

     327      $ 23,525   
   

 

 

  
      37,366   
   

 

 

  

TOTAL PREFERRED STOCKS

    

(Cost: $59,106)

       69,346   

SHORT-TERM INVESTMENTS — 1.18%

  

MONEY MARKET FUNDS — 1.18%

    

BlackRock Cash Funds: Institutional,
SL Agency Shares

    

0.21%c,d,e

     28,352        28,352   

BlackRock Cash Funds: Prime,
SL Agency Shares

    

0.18%c,d,e

     2,053        2,053   

BlackRock Cash Funds: Treasury,
SL Agency Shares

    

0.04%c,d

     272        272   
   

 

 

  
      30,677   
   

 

 

  

TOTAL SHORT-TERM INVESTMENTS

    

(Cost: $30,677)

       30,677   
   

 

 

  

TOTAL INVESTMENTS
IN SECURITIES — 100.86%

   

  

(Cost: $2,511,629)

  

     2,636,223   

Other Assets, Less Liabilities — (0.86)%

       (22,486 ) 
   

 

 

  

NET ASSETS — 100.00%

     $ 2,613,737   
   

 

 

  

CPO  —  Certificates of Participation (Ordinary)

NVDR  —  Non-Voting Depositary Receipts

 

a 

Non-income earning security.

b 

All or a portion of this security represents a security on loan. See Note 5.

c 

Affiliated issuer. See Note 2.

d 

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

e 

All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to consolidated financial statements.

 

 

32    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Consolidated Schedule of Investments (Unaudited)

iSHARES® MSCI EMERGING MARKETS ENERGY SECTOR CAPPED INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

COMMON STOCKS — 90.58%

  

BRAZIL — 7.01%

  

  

Cosan SA Industria e Comercio

     200      $ 4,720   

OGX Petroleo e Gas Participacoes SAa

     5,902        9,403   

Petroleo Brasileiro SA

     12,202        89,428   

Ultrapar Participacoes SA

     1,601        41,541   
   

 

 

  
      145,092   

CHILE — 0.82%

  

  

Empresas Copec SA

     1,100        16,971   
   

 

 

  
      16,971   

CHINA — 24.52%

  

  

China Coal Energy Co. Class H

     21,000        20,824   

China Oilfield Services Ltd. Class H

     10,001        21,228   

China Petroleum & Chemical Corp. Class H

     88,002        100,089   

China Shenhua Energy Co. Ltd. Class H

     17,000        64,450   

CNOOC Ltd.

     76,001        149,359   

Kunlun Energy Co. Ltd.

     6,000        12,441   

PetroChina Co. Ltd. Class H

     90,000        123,716   

Yanzhou Coal Mining Co. Ltd. Class H

     10,002        15,503   
   

 

 

  
      507,610   

COLOMBIA — 2.83%

  

  

Ecopetrol SA SP ADR

     1,018        58,586   
   

 

 

  
      58,586   

HUNGARY — 0.79%

  

  

MOL Hungarian Oil and Gas PLC

     213        16,371   
   

 

 

  
      16,371   

INDIA — 7.00%

  

  

Bharat Petroleum Corp. Ltd.

     1,542        10,542   

Cairn India Ltd.

     1,141        6,249   

Coal India Ltd.

     2,708        15,420   

Oil & Natural Gas Corp. Ltd.

     3,898        22,458   

Reliance Industries Ltd.

     6,029        90,188   
   

 

 

  
      144,857   

INDONESIA — 1.79%

  

  

PT Adaro Energy Tbk

     75,502        12,267   

PT Bukit Asam (Persero) Tbk

     5,000        7,813   

PT Bumi Resources Tbk

     77,500        6,576   

PT Indo Tambangraya Megah Tbk

     2,500        10,413   
   

 

 

  
      37,069   
Security   Shares     Value  
   

MALAYSIA — 1.65%

  

  

Bumi Armada Bhda

     6,801      $ 8,340   

Petronas Dagangan Bhd

     1,901        14,468   

Sapurakencana Petroleum Bhda

     12,201        11,449   
   

 

 

  
      34,257   

POLAND — 2.65%

  

  

Grupa Lotos SAa

     519        6,829   

Polski Koncern Naftowy Orlen SAa

     1,715        28,984   

Polskie Gornictwo Naftowe i Gazownictwo SAa

     10,564        19,034   
   

 

 

  
      54,847   

RUSSIA — 25.14%

  

  

Gazprom OAO

     44,650        200,470   

LUKOIL OAO

     2,123        136,179   

NovaTek OAO SP GDRb

     422        48,952   

Rosneft Oil Co. OJSC

     6,282        50,090   

Surgutneftegas OJSC

     35,402        33,192   

Tatneft OAO, Class S

     6,991        45,757   

TMK OAO SP GDRb

     401        5,979   
   

 

 

  
      520,619   

SOUTH AFRICA — 4.78%

  

  

Exxaro Resources Ltd.

     281        5,382   

Sasol Ltd.

     2,189        93,650   
   

 

 

  
      99,032   

SOUTH KOREA — 4.18%

  

  

GS Holdings Corp.

     272        17,533   

S-Oil Corp.

     238        21,958   

SK Innovation Co. Ltd.

     286        47,014   
   

 

 

  
      86,505   

TAIWAN — 0.81%

  

  

Formosa Petrochemical Corp.

     6,000        16,685   
   

 

 

  
      16,685   

THAILAND — 5.67%

  

  

Banpu PCL NVDR

     750        9,857   

IRPC PCL NVDR

     61,600        8,821   

PTT Exploration & Production PCL NVDR

     6,933        36,821   

PTT PCL NVDR

     4,302        50,612   

Thai Oil PCL NVDR

     4,801        11,296   
   

 

 

  
      117,407   
 

 

CONSOLIDATED SCHEDULES OF INVESTMENTS

      33   

Table of Contents

Consolidated Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS ENERGY SECTOR CAPPED INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

TURKEY — 0.94%

    

Turkiye Petrol Rafinerileri AS

     695      $ 19,475   
   

 

 

  
      19,475   
   

 

 

  

TOTAL COMMON STOCKS

    

(Cost: $2,202,552)

       1,875,383   

PREFERRED STOCKS — 9.23%

    

BRAZIL — 7.10%

  

  

Petroleo Brasileiro SA

     17,500        147,021   
   

 

 

  
      147,021   

RUSSIA — 2.13%

  

  

AK Transneft OAO

     8        17,940   

Surgutneftegas OJSC

     35,502        26,138   
   

 

 

  
      44,078   
   

 

 

  

TOTAL PREFERRED STOCKS

    

(Cost: $290,387)

       191,099   

SHORT-TERM INVESTMENTS — 0.03%

    

MONEY MARKET FUNDS — 0.03%

    

BlackRock Cash Funds: Treasury,
SL Agency Shares

    

0.04%c,d

     676        676   
   

 

 

  
      676   
   

 

 

  

TOTAL SHORT-TERM INVESTMENTS

    

(Cost: $676)

       676   
   

 

 

  

TOTAL INVESTMENTS
IN SECURITIES — 99.84%

   

  

(Cost: $2,493,615)

       2,067,158   

Other Assets, Less Liabilities — 0.16%

       3,368   
   

 

 

  

NET ASSETS — 100.00%

  

   $ 2,070,526   
   

 

 

  

NVDR  —  Non-Voting Depositary Receipts

SP ADR  —  Sponsored American Depositary Receipts

SP GDR  —  Sponsored Global Depositary Receipts

 

a 

Non-income earning security.

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 consolidated financial statements.

 

 

34    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Consolidated Schedule of Investments (Unaudited)

iSHARES® MSCI EMERGING MARKETS GROWTH INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

COMMON STOCKS — 92.42%

  

BRAZIL — 7.03%

  

  

ALL — America Latina Logistica SA

     700      $ 3,470   

Amil Participacoes SA

     200        3,169   

Anhanguera Educacional Participacoes SA

     200        4,147   

Arteris SA

     200        2,155   

Banco Bradesco SA

     800        14,251   

BR Malls Participacoes SA

     600        7,769   

BR Properties SA

     300        3,733   

BRF — Brasil Foods SA

     900        19,551   

CCR SA

     1,300        13,052   

CETIP SA — Mercados Organizados

     300        3,626   

Cielo SA

     400        12,024   

Companhia de Bebidas das Americas

     200        8,830   

Companhia de Saneamento Basico do Estado de Sao Pauloa

     100        4,854   

Companhia de Saneamento de Minas Gerais SA

     100        2,595   

Companhia Hering SA

     200        3,885   

Cyrela Brazil Realty SA Empreendimentos e Participacoes

     400        3,520   

Diagnosticos da America SA

     400        2,762   

Duratex SA

     400        3,348   

EcoRodovias Infraestrutura e Logistica SA

     200        1,737   

Hypermarcas SAa

     500        4,423   

JBS SAa

     400        1,388   

Kroton Educacional SAa

     100        2,620   

Localiza Rent A Car SA

     200        3,797   

Lojas Americanas SA

     200        1,740   

Lojas Renner SA

     200        7,623   

MPX Energia SAa

     100        532   

MRV Engenharia e Participacoes SA

     500        3,212   

Multiplan Empreendimentos Imobiliarios SA

     100        2,865   

Multiplus SA

     100        1,864   

Natura Cosmeticos SA

     200        5,169   

Odontoprev SA

     400        1,853   

OGX Petroleo e Gas Participacoes SAa

     1,900        3,027   

Qualicorp SAa

     200        2,239   

Raia Drogasil SA

     300        3,463   

Souza Cruz SA

     500        7,989   

TIM Participacoes SA

     600        2,625   
Security   Shares     Value  
   

Totvs SA

     200      $ 4,426   

Tractebel Energia SA

     100        1,770   

Ultrapar Participacoes SA

     500        12,974   

WEG SA

     200        2,680   
   

 

 

  
      196,757   

CHILE — 1.60%

  

  

Banco de Credito e Inversiones

     28        2,177   

CAP SA

     51        1,834   

Cencosud SA

     1,455        9,092   

Colbun SAa

     11,495        3,611   

Compania Cervecerias Unidas SA

     171        2,776   

Empresa Nacional de Electricidad SA

     4,662        7,924   

LATAM Airlines Group SA

     381        9,086   

S.A.C.I. Falabella SA

     710        8,286   
   

 

 

  
      44,786   

CHINA — 17.75%

  

  

Air China Ltd. Class H

     4,000        3,239   

Anhui Conch Cement Co. Ltd. Class H

     1,500        5,484   

AviChina Industry & Technology Co. Ltd. Class H

     4,000        1,836   

Beijing Capital International Airport Co. Ltd. Class H

     2,000        1,573   

Beijing Enterprises Holdings Ltd.

     1,000        7,647   

Belle International Holdings Ltd.

     7,000        12,890   

Brilliance China Automotive Holdings Ltd.a

     4,000        5,519   

BYD Co. Ltd. Class Ha

     500        1,773   

China Foods Ltd.

     2,000        1,318   

China Gas Holdings Ltd.

     6,000        5,842   

China Life Insurance Co. Ltd. Class H

     11,000        33,050   

China Longyuan Power Group Corp. Ltd. Class H

     4,000        3,647   

China Mengniu Dairy Co. Ltd.b

     2,000        5,584   

China National Building Material Co. Ltd. Class H

     4,000        6,107   

China Oilfield Services Ltd. Class H

     2,000        4,245   

China Overseas Land & Investment Ltd.

     6,000        18,221   

China Pacific Insurance (Group) Co. Ltd. Class H

     3,400        12,539   

China Railway Construction Corp. Ltd. Class H

     3,000        3,145   

China Resources Gas Group Ltd.

     2,000        4,637   

China Resources Land Ltd.

     2,000        5,842   

China Resources Power Holdings Co. Ltd.

     2,000        5,403   
 

 

CONSOLIDATED SCHEDULES OF INVESTMENTS

      35   

Table of Contents

Consolidated Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS GROWTH INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

China Shenhua Energy Co. Ltd. Class H

     5,000      $ 18,956   

China State Construction International Holdings Ltd.

     2,000        2,806   

China Taiping Insurance Holdings Co. Ltd.a

     1,200        2,395   

China Telecom Corp. Ltd. Class H

     8,000        4,147   

China Unicom (Hong Kong) Ltd.

     6,000        8,650   

CNOOC Ltd.

     26,000        51,096   

Country Garden Holdings Co. Ltd.a

     7,000        3,593   

CSR Corp Ltd. Class H

     3,000        2,457   

Dah Chong Hong Holdings Ltd.

     2,000        2,055   

Daphne International Holdings Ltd.

     2,000        2,406   

Dongfeng Motor Group Co. Ltd. Class H

     4,000        5,860   

ENN Energy Holdings Ltd.

     2,000        10,045   

Evergrande Real Estate Group Ltd.

     4,000        1,976   

Far East Horizon Ltd.

     2,000        1,473   

Geely Automobile Holdings Ltd.

     5,000        2,753   

Golden Eagle Retail Group Ltd.

     1,000        2,053   

Great Wall Motor Co. Ltd. Class H

     1,500        5,871   

Greentown China Holdings Ltd.a

     1,000        1,932   

Haier Electronics Group Co. Ltd.a

     1,000        1,805   

Haitong Securities Co. Ltd. Class Ha

     2,000        3,368   

Hengan International Group Co. Ltd.

     1,000        10,148   

Huaneng Power International Inc. Class H

     4,000        4,116   

Intime Department Store Group Co. Ltd.

     1,500        1,839   

Kunlun Energy Co. Ltd.

     4,000        8,294   

Lenovo Group Ltd.

     10,000        11,167   

Longfor Properties Co. Ltd.

     1,500        2,658   

New China Life Insurance Co. Ltd. Class H

     900        3,511   

Parkson Retail Group Ltd.

     2,000        1,300   

People’s Insurance Co. Group of China Ltd. Class Ha

     2,000        1,173   

PetroChina Co. Ltd. Class H

     30,000        41,239   

PICC Property and Casualty Co. Ltd. Class H

     4,000        5,746   

Ping An Insurance (Group) Co. of China Ltd. Class Hb

     2,500        20,922   

Shandong Weigao Group Medical Polymer Co. Ltd. Class H

     4,000        3,719   

Shanghai Pharmaceuticals Holding Co. Ltd. Class H

     800        1,723   

Shimao Property Holdings Ltd.

     2,000        4,023   

Sihuan Pharmaceutical Holdings Group Ltd.

     3,000        1,393   
Security   Shares     Value  
   

Sinopharm Group Co. Ltd. Class Hb

     1,200      $ 3,791   

Sun Art Retail Group Ltd.

     3,000        4,178   

Tencent Holdings Ltd.

     1,400        48,419   

Tingyi (Cayman Islands) Holding Corp.

     2,000        5,248   

Uni-President China Holdings Ltd.

     2,000        2,463   

Want Want China Holdings Ltd.

     9,000        12,627   

Wumart Stores Inc. Class H

     1,000        1,960   

Yingde Gases Group Co. Ltd.

     1,500        1,756   

Zhaojin Mining Industry Co. Ltd. Class H

     1,500        1,977   

Zhongsheng Group Holdings Ltd.

     1,000        1,547   

Zhuzhou CSR Times Electric Co. Ltd. Class H

     1,000        3,308   

ZTE Corp. Class H

     800        1,366   
   

 

 

  
      496,849   

COLOMBIA — 0.97%

  

  

Almacenes Exito SA

     202        3,896   

Bancolombia SA SP ADR

     213        13,832   

Ecopetrol SA SP ADR

     116        6,676   

Isagen SA ESP

     1,889        2,660   
   

 

 

  
      27,064   

CZECH REPUBLIC — 0.33%

  

  

CEZ AS

     116        3,494   

Komercni Banka AS

     28        5,696   
   

 

 

  
      9,190   

HUNGARY — 0.16%

  

  

MOL Hungarian Oil and Gas PLC

     58        4,458   
   

 

 

  
      4,458   

INDIA — 6.26%

  

  

Adani Enterprises Ltd.

     86        341   

Adani Ports and Special Economic Zone Ltd.

     608        1,549   

Asian Paints Ltd.

     40        3,141   

Axis Bank Ltd.

     212        5,238   

Bharti Airtel Ltd.

     854        5,069   

Cipla Ltd.

     486        3,215   

Coal India Ltd.

     242        1,378   

Dabur India Ltd.

     611        1,420   

Divi’s Laboratories Ltd.

     95        1,764   

Dr. Reddy’s Laboratories Ltd.

     145        4,679   

Godrej Consumer Products Ltd.

     169        2,252   

HCL Technologies Ltd.

     312        4,149   

HDFC Bank Ltd.

     2,182        25,081   
 

 

36    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Consolidated Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS GROWTH INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Hindustan Unilever Ltd.

     1,237      $ 10,074   

Housing Development Finance Corp. Ltd.

     2,052        28,576   

ICICI Bank Ltd.

     342        6,540   

Idea Cellular Ltd.a

     1,021        2,207   

ITC Ltd.

     3,149        17,063   

Kotak Mahindra Bank Ltd.

     407        4,934   

Larsen & Toubro Ltd.

     151        3,796   

LIC Housing Finance Ltd.

     432        1,845   

Lupin Ltd.

     198        2,129   

Ranbaxy Laboratories Ltd.a

     99        688   

Reliance Power Ltd.a

     827        1,093   

Satyam Computer Services Ltd.a

     639        1,388   

Sun Pharmaceuticals Industries Ltd.

     437        6,443   

Tata Consultancy Services Ltd.

     675        18,821   

Titan Industries Ltd.

     328        1,573   

United Breweries Ltd.

     148        1,669   

United Spirits Ltd.

     135        4,566   

Zee Entertainment Enterprises Ltd.

     643        2,576   
   

 

 

  
      175,257   

INDONESIA — 3.05%

  

  

PT Astra International Tbk

     9,500        7,816   

PT Bank Central Asia Tbk

     18,000        20,489   

PT Bank Mandiri (Persero) Tbk

     9,000        9,360   

PT Bank Rakyat Indonesia (Persero) Tbk

     8,000        7,823   

PT Charoen Pokphand Indonesia Tbk

     10,500        4,781   

PT Global Mediacom Tbk

     9,000        2,142   

PT Gudang Garam Tbk

     500        2,499   

PT Indocement Tunggal Prakarsa Tbk

     2,000        4,543   

PT Indosat Tbk

     3,500        2,300   

PT Jasa Marga (Persero) Tbk

     3,000        1,723   

PT Kalbe Farma Tbk

     35,000        4,672   

PT Media Nusantara Citra Tbk

     8,500        2,595   

PT Semen Gresik (Persero) Tbk

     4,000        7,182   

PT Unilever Indonesia Tbk

     2,000        4,729   

PT XL Axiata Tbk

     5,000        2,820   
   

 

 

  
      85,474   

MALAYSIA — 3.36%

  

  

AirAsia Bhd

     1,800        1,695   

Axiata Group Bhd

     3,600        7,455   

British American Tobacco (Malaysia) Bhd

     100        1,974   

Bumi Armada Bhda

     1,800        2,207   

CIMB Group Holdings Bhd

     4,400        10,251   
Security   Shares     Value  
   

DiGi.Com Bhd

     4,600      $ 6,802   

Felda Global Ventures Holdings Bhd

     1,700        2,470   

Gamuda Bhd

     900        1,118   

Genting Bhd

     2,900        8,905   

Genting Plantations Bhd

     400        1,096   

Hong Leong Bank Bhd

     800        3,774   

IJM Corp. Bhd

     1,600        2,656   

Kuala Lumpur Kepong Bhd

     800        5,369   

Lafarge Malayan Cement Bhd

     700        2,211   

Malaysia Marine and Heavy Engineering Holdings Bhd

     800        1,048   

Maxis Communications Bhd

     1,500        3,092   

MMC Corp. Bhd

     2,300        1,868   

Petronas Chemicals Group Bhd

     3,900        8,013   

Petronas Dagangan Bhd

     300        2,283   

Petronas Gas Bhd

     900        5,335   

Public Bank Bhd Foreign

     1,500        7,814   

Sapurakencana Petroleum Bhda

     3,300        3,097   

Telekom Malaysia Bhd

     1,100        1,894   

UEM Land Holdings Bhda

     2,400        1,778   
   

 

 

  
      94,205   

MEXICO — 4.98%

  

  

Alfa SAB de CV Series A

     3,700        9,000   

Alpek SAB de CV

     900        2,051   

America Movil SAB de CV Series L

     27,900        29,193   

Arca Continental SAB de CV

     500        3,764   

Coca-Cola FEMSA SAB de CV Series L

     600        10,137   

El Puerto de Liverpool SA de CV Series C1

     300        3,381   

Grupo Bimbo SAB de CV Series A

     2,400        6,512   

Grupo Financiero Banorte SAB de CV Series O

     1,600        11,875   

Grupo Financiero Inbursa SAB de CV Series O

     1,500        4,228   

Grupo Financiero Santander Mexico SAB de CV Series B

     2,300        6,869   

Grupo Televisa SAB de CV CPO

     1,900        10,199   

Kimberly-Clark de Mexico SAB de CV Series A

     2,100        6,648   

Mexichem SAB de CV

     1,600        8,012   

Minera Frisco SAB de CV Series A1a

     900        3,801   

Wal-Mart de Mexico SAB de CV Series V

     7,600        23,868   
   

 

 

  
      139,538   
 

 

CONSOLIDATED SCHEDULES OF INVESTMENTS

      37   

Table of Contents

Consolidated Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS GROWTH INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

PERU — 0.68%

  

  

Credicorp Ltd.

     100      $ 14,998   

Southern Copper Corp.

     109        4,119   
   

 

 

  
      19,117   

PHILIPPINES — 1.01%

  

  

Aboitiz Equity Ventures Inc.

     2,800        4,035   

Ayala Land Inc.

     8,000        6,296   

DMCI Holdings Inc.

     1,000        1,316   

Energy Development Corp.

     11,700        2,181   

International Container Terminal Services Inc.

     1,200        2,420   

Jollibee Foods Corp.

     660        2,060   

SM Investments Corp.

     100        2,568   

SM Prime Holdings Inc.

     10,200        4,766   

Universal Robina Corp.

     1,100        2,565   
   

 

 

  
      28,207   

POLAND — 1.55%

  

  

Bank Handlowy w Warszawie SA

     68        1,926   

Bank Pekao SA

     175        8,842   

BRE Bank SAa

     20        2,126   

Cyfrowy Polsat SAa

     322        1,664   

Eurocash SA

     100        1,670   

Kernel Holding SAa

     78        1,600   

Polski Koncern Naftowy Orlen SAa

     437        7,385   

Polskie Gornictwo Naftowe i Gazownictwo SAa

     2,623        4,726   

Powszechna Kasa Oszczednosci Bank Polski SA

     582        6,527   

Powszechny Zaklad Ubezpieczen SA

     44        5,584   

Synthos SA

     700        1,219   
   

 

 

  
      43,269   

RUSSIA — 6.13%

  

  

LSR Group OJSC SP GDRc

     324        1,537   

Magnit OJSC SP GDRc

     374        15,865   

MegaFon OAO SP GDRa

     100        2,875   

MMC Norilsk Nickel OJSC

     67        11,831   

Mobile TeleSystems OJSC SP ADR

     643        13,304   

NovaTek OAO SP GDRc

     130        15,080   

Rosneft Oil Co. OJSC

     970        7,734   

Rostelecom OJSC

     1,710        6,857   

RusHydro OJSC

     174,000        3,914   

Sberbank of Russia

     15,520        53,032   
Security   Shares     Value  
   

Severstal OAO

     30      $ 334   

Sistema JSFC SP GDRc

     34        669   

Surgutneftegas OJSC

     5,300        4,969   

Tatneft OAO, Class S

     2,050        13,418   

TMK OAO SP GDRc

     91        1,357   

Uralkali OJSC

     1,900        14,125   

VTB Bank OJSC

     2,550,000        4,656   
   

 

 

  
      171,557   

SOUTH AFRICA — 6.99%

  

  

Anglo American Platinum Ltd.

     94        4,452   

AngloGold Ashanti Ltd.

     543        13,339   

ArcelorMittal South Africa Ltd.a

     298        961   

Aspen Pharmacare Holdings Ltd.a

     405        7,365   

Assore Ltd.

     48        1,805   

Bidvest Group Ltd.

     420        11,146   

Discovery Holdings Ltd.

     210        1,758   

Foschini Group Ltd. (The)

     301        3,591   

Harmony Gold Mining Co. Ltd.

     447        2,826   

Impala Platinum Holdings Ltd.

     256        3,966   

Kumba Iron Ore Ltd.

     108        6,841   

Life Healthcare Group Holdings Ltd.

     1,315        4,946   

Massmart Holdings Ltd.

     159        3,305   

Mr. Price Group Ltd.

     346        4,466   

MTN Group Ltd.

     2,424        47,436   

Naspers Ltd. Class N

     563        36,570   

Netcare Ltd.

     1,068        2,381   

Northam Platinum Ltd.

     349        1,524   

Pick n Pay Stores Ltd.

     377        1,881   

PPC Ltd.

     199        765   

Shoprite Holdings Ltd.

     617        11,821   

SPAR Group Ltd. (The)

     258        3,140   

Tiger Brands Ltd.

     149        5,040   

Truworths International Ltd.b

     641        6,647   

Woolworths Holdings Ltd.

     1,091        7,860   
   

 

 

  
      195,832   

SOUTH KOREA — 15.09%

  

  

AmorePacific Corp.

     4        3,783   

AmorePacific Group

     3        1,169   

Celltrion Inc.

     175        4,339   

Cheil Industries Inc.

     34        2,769   

Cheil Worldwide Inc.a

     150        3,325   

CJ CheilJedang Corp.

     12        4,283   
 

 

38    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Consolidated Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS GROWTH INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Daewoo International Corp.

     50      $ 1,771   

Doosan Infracore Co. Ltd.a

     150        2,189   

E-Mart Co. Ltd.

     30        6,123   

Hankook Tire Co. Ltd.

     99        4,507   

Hyundai Glovis Co. Ltd.

     18        3,416   

Hyundai Hysco Co. Ltd.

     50        1,667   

Hyundai Merchant Marine Co. Ltd.a

     53        871   

Hyundai Mobis Co. Ltd.

     97        28,039   

Hyundai Wia Corp.

     22        3,230   

Kia Motors Corp.

     243        12,545   

Korea Aerospace Industries Ltd.

     50        1,122   

Korea Zinc Co. Ltd.

     13        4,514   

Korean Air Lines Co. Ltd.a

     50        2,041   

LG Chem Ltd.

     67        18,346   

LG Household & Health Care Ltd.

     13        7,456   

LG Innotek Co. Ltd.a

     15        1,049   

LG Uplus Corp.a

     360        2,826   

Lotte Chemical Corp.

     23        5,055   

LS Corp.

     25        2,020   

LS Industrial Systems Co. Ltd.

     23        1,419   

Mando Corp.

     21        2,541   

NCsoft Corp.

     22        2,905   

NHN Corp.

     59        14,330   

ORION Corp.

     5        4,941   

S1 Corp.

     34        2,182   

Samsung C&T Corp.

     86        5,258   

Samsung Electro-Mechanics Co. Ltd.

     85        7,497   

Samsung Electronics Co. Ltd.

     156        222,440   

Samsung SDI Co. Ltd.

     49        6,290   

Samsung Techwin Co. Ltd.

     55        3,312   

SK Hynix Inc.a

     760        18,599   

Yuhan Corp.

     14        2,308   
   

 

 

  
      422,477   

TAIWAN — 10.95%

  

  

Acer Inc.a

     2,000        1,783   

AU Optronics Corp.a

     6,000        2,609   

Cathay Financial Holding Co. Ltd.

     5,000        6,337   

Chailease Holding Co. Ltd.

     1,000        2,804   

Cheng Shin Rubber Industry Co. Ltd.

     3,000        8,151   

China Airlines Ltd.a

     6,000        2,467   

China Development Financial Holding Corp.a

     7,000        2,083   

China Life Insurance Co. Ltd.a

     3,089        2,957   
Security   Shares     Value  
   

Chinatrust Financial Holding Co. Ltd.

     6,528      $ 3,862   

Clevo Co.

     1,080        1,516   

Delta Electronics Inc.

     3,000        11,174   

E.Sun Financial Holding Co. Ltd.

     6,000        3,590   

Epistar Corp.

     1,000        1,942   

EVA Airways Corp.a

     3,000        1,886   

Far Eastern Department Stores Co. Ltd.

     2,000        1,891   

Far EasTone Telecommunications Co. Ltd.

     2,000        4,631   

Formosa Petrochemical Corp.

     2,000        5,562   

Foxconn Technology Co. Ltd.

     1,000        2,747   

Giant Manufacturing Co. Ltd.

     1,000        5,478   

Hiwin Technologies Corp.

     50        413   

Hon Hai Precision Industry Co. Ltd.

     15,000        41,309   

MediaTek Inc.

     2,000        22,483   

Nan Kang Rubber Tire Co. Ltd.

     1,234        1,425   

Pegatron Corp.a

     2,000        2,697   

President Chain Store Corp.

     1,000        5,528   

Radiant Opto-Electronics Corp.

     1,000        3,607   

Ruentex Industries Ltd.

     1,000        2,407   

Simplo Technology Co. Ltd.

     100        443   

Standard Foods Corp.

     1,000        2,902   

Taiwan Fertilizer Co. Ltd.

     1,000        2,424   

Taiwan Glass Industry Corp.

     2,000        1,891   

Taiwan Mobile Co. Ltd.

     2,000        6,978   

Taiwan Semiconductor Manufacturing Co. Ltd.

     35,000        123,287   

Uni-President Enterprises Co.

     6,000        11,225   

Wintek Corp.a

     2,000        944   

Yang Ming Marine Transport Corp.a

     3,000        1,421   

Yulon Motor Co. Ltd.

     1,000        1,790   
   

 

 

  
      306,644   

THAILAND — 2.57%

  

  

Airports of Thailand PCL NVDR

     1,100        4,363   

Bank of Ayudhya PCL NVDR

     2,800        3,247   

Banpu PCL NVDR

     50        657   

BEC World PCL NVDR

     1,600        3,617   

Central Pattana PCL NVDR

     1,700        5,486   

Charoen Pokphand Foods PCL NVDR

     4,600        5,025   

CP All PCL NVDR

     6,400        10,165   

Kasikornbank PCL Foreign

     2,100        15,388   

Kasikornbank PCL NVDR

     1,000        7,126   

Siam Cement PCL Foreign

     600        9,600   
 

 

CONSOLIDATED SCHEDULES OF INVESTMENTS

      39   

Table of Contents

Consolidated Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS GROWTH INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Siam Commercial Bank PCL NVDR

     1,200      $ 7,180   
   

 

 

  
      71,854   

TURKEY — 1.96%

  

  

Akbank TAS

     888        4,315   

Anadolu Efes Biracilik ve Malt Sanayii AS

     301        4,518   

Arcelik AS

     333        2,111   

BIM Birlesik Magazalar AS

     155        7,346   

Coca-Cola Icecek AS

     98        2,316   

Emlak Konut Gayrimenkul Yatirim Ortakligi AS

     1,036        1,682   

Koza Altin Isletmeleri AS

     53        1,255   

TAV Havalimanlari Holding AS

     256        1,559   

Turk Hava Yollari AOa

     684        2,837   

Turkcell Iletisim Hizmetleri ASa

     560        3,721   

Turkiye Garanti Bankasi AS

     3,297        15,764   

Turkiye Halk Bankasi AS

     588        5,819   

Yapi ve Kredi Bankasi ASa

     596        1,683   
   

 

 

  
      54,926   
   

 

 

  

TOTAL COMMON STOCKS

  

  

(Cost: $2,317,982)

  

     2,587,461   

PREFERRED STOCKS — 7.21%

  

BRAZIL — 6.37%

  

  

Banco Bradesco SA

     2,700        48,234   

Braskem SA Class A

     300        2,212   

Companhia Brasileira de Distribuicao Grupo Pao de Acucar Class A

     200        10,035   

Companhia de Bebidas das Americas

     1,100        48,849   

Itau Unibanco Holding SA

     3,200        56,762   

Klabin SA

     700        4,712   

Lojas Americanas SA

     600        5,481   

Marcopolo SA

     300        2,011   
   

 

 

  
      178,296   

CHILE — 0.33%

  

  

Embotelladora Andina SA Class B

     316        2,134   

Sociedad Quimica y Minera de Chile SA Series B

     131        7,270   
   

 

 

  
      9,404   

COLOMBIA — 0.13%

  

  

Grupo Aval Acciones y Valores SA

     5,074        3,607   
   

 

 

  
      3,607   
Security   Shares     Value  
   

RUSSIA — 0.15%

  

  

Sberbank of Russia

     1,700      $ 4,130   
   

 

 

  
      4,130   

SOUTH KOREA — 0.23%

  

  

Samsung Electronics Co. Ltd.

     8        6,502   
   

 

 

  
      6,502   
   

 

 

  

TOTAL PREFERRED STOCKS

  

  

(Cost: $196,438)

  

     201,939   

RIGHTS — 0.00%

  

  

BRAZIL — 0.00%

  

  

Companhia de Bebidas das Americas Preferreda

     1        —   
   

 

 

  
      —   

CHILE — 0.00%

  

  

Cencosud SAa

     173        134   
   

 

 

  
      134   
   

 

 

  

TOTAL RIGHTS

  

  

(Cost: $0)

  

     134   

SHORT-TERM INVESTMENTS — 1.36%

  

MONEY MARKET FUNDS — 1.36%

  

  

BlackRock Cash Funds: Institutional,
SL Agency Shares

    

0.21%d,e,f

     32,274        32,274   

BlackRock Cash Funds: Prime,
SL Agency Shares

    

0.18%d,e,f

     2,337        2,337   

BlackRock Cash Funds: Treasury,
SL Agency Shares

    

0.04%d,e

     3,341        3,341   
   

 

 

  
      37,952   
   

 

 

  

TOTAL SHORT-TERM INVESTMENTS

  

  

(Cost: $37,952)

  

     37,952   
   

 

 

  
 

 

40    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Consolidated Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS GROWTH INDEX FUND

February 28, 2013

 

          Value  
   

TOTAL INVESTMENTS
IN SECURITIES — 100.99%

  

(Cost: $2,552,372)

   $ 2,827,486   

Other Assets, Less Liabilities — (0.99)%

     (27,771 ) 
   

 

 

  

NET ASSETS — 100.00%

   $ 2,799,715   
   

 

 

  

CPO  —  Certificates of Participation (Ordinary)

NVDR  —  Non-Voting Depositary Receipts

SP ADR  —  Sponsored American Depositary Receipts

SP GDR  —  Sponsored Global Depositary Receipts

 

a 

Non-income earning security.

b 

All or a portion of this security represents a security on loan. See Note 5.

c 

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

d 

Affiliated issuer. See Note 2.

e 

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

f 

All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to consolidated financial statements.

 

 

CONSOLIDATED SCHEDULES OF INVESTMENTS

      41   

Table of Contents

Consolidated Schedule of Investments (Unaudited)

iSHARES® MSCI EMERGING MARKETS MINIMUM VOLATILITY INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   
   

COMMON STOCKS — 96.19%

  

BRAZIL — 5.84%

  

  

CCR SA

     745,600      $ 7,485,792   

Cielo SA

     97,300        2,924,758   

Companhia de Bebidas das Americas

     69,900        3,086,122   

CPFL Energia SA

     675,700        6,896,781   

EcoRodovias Infraestrutura e Logistica SA

     862,100        7,486,853   

EDP Energias do Brasil SA

     1,561,100        9,482,986   

Natura Cosmeticos SA

     189,900        4,908,143   

Porto Seguro SA

     166,600        2,211,952   

Souza Cruz SA

     862,100        13,774,589   

Totvs SA

     419,400        9,280,638   

Tractebel Energia SA

     838,800        14,849,021   

Ultrapar Participacoes SA

     26,800        695,382   
   

 

 

  
      83,083,017   

CHILE — 5.94%

  

  

AES Gener SA

     3,626,412        2,492,377   

Aguas Andinas SA Series A

     8,460,463        6,795,198   

Banco de Chile

     54,626,186        9,068,374   

Banco de Chile Series Ta

     1,216,952        186,511   

Banco de Credito e Inversiones

     94,132        7,319,631   

Colbun SAa

     32,340,633        10,159,901   

CorpBanca SA

     970,287,026        14,267,660   

E.CL SA

     265,888        601,529   

Empresa Nacional de Electricidad SA

     5,626,985        9,563,912   

Empresa Nacional de Telecomunicaciones SA

     163,566        3,450,843   

Empresas CMPC SA

     235,598        908,874   

LATAM Airlines Group SA

     585,063        13,952,216   

S.A.C.I. Falabella SA

     174,983        2,042,165   

Vina Concha y Toro SA

     1,783,650        3,718,951   
   

 

 

  
      84,528,142   

CHINA — 15.01%

  

  

Agricultural Bank of China Ltd. Class H

     10,485,000        5,408,228   

Bank of China Ltd. Class H

     28,193,000        13,306,045   

Bank of Communications Co. Ltd. Class H

     1,631,000        1,291,365   

Beijing Enterprises Holdings Ltd.

     233,000        1,781,711   
Security   Shares     Value  
   

China CITIC Bank Corp. Ltd. Class H

     3,029,000      $ 1,945,159   

China Construction Bank Corp. Class H

     12,617,000        10,412,684   

China Gas Holdings Ltd.

     4,660,000        4,536,903   

China Life Insurance Co. Ltd. Class H

     2,330,000        7,000,651   

China Mengniu Dairy Co. Ltd.

     1,398,000        3,902,938   

China Minsheng Banking Corp. Ltd. Class H

     13,281,000        18,496,141   

China Mobile Ltd.

     1,165,000        12,837,031   

China Pacific Insurance (Group) Co. Ltd. Class H

     1,537,800        5,671,429   

China Petroleum & Chemical Corp. Class H

     4,264,000        4,849,672   

China Resources Enterprise Ltd.

     466,000        1,514,304   

China Resources Gas Group Ltd.

     5,126,000        11,884,882   

China Resources Power Holdings Co. Ltd.

     2,330,000        6,294,577   

China Telecom Corp. Ltd. Class H

     4,730,000        2,451,962   

China Vanke Co. Ltd. Class B

     1,589,797        3,228,857   

ENN Energy Holdings Ltd.

     86,000        431,949   

Guangdong Investment Ltd.

     7,922,000        6,813,767   

Hengan International Group Co. Ltd.

     1,048,500        10,640,689   

Industrial and Commercial Bank of China Ltd. Class H

     13,048,000        9,371,859   

Inner Mongolia Yitai Coal Co. Ltd. Class B

     2,609,677        15,003,033   

Jiangsu Expressway Co. Ltd. Class H

     7,922,000        8,008,985   

Kunlun Energy Co. Ltd.

     2,796,000        5,797,621   

PetroChina Co. Ltd. Class H

     2,330,000        3,202,873   

Shandong Weigao Group Medical Polymer Co. Ltd. Class H

     932,000        866,518   

Shanghai Pharmaceuticals Holding Co. Ltd. Class H

     4,007,600        8,630,331   

Sihuan Pharmaceutical Holdings Group Ltd.

     1,864,000        865,317   

Tencent Holdings Ltd.

     163,100        5,640,782   

Tingyi (Cayman Islands) Holding Corp.

     3,798,000        9,966,576   

Tsingtao Brewery Co. Ltd. Class H

     586,000        3,668,711   
 

 

42    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Consolidated Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS MINIMUM VOLATILITY INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Zhejiang Expressway Co. Ltd. Class H

     9,390,000      $ 7,882,667   
   

 

 

  
      213,606,217   

COLOMBIA — 2.57%

  

  

Almacenes Exito SA

     122,791        2,368,295   

Cementos Argos SA

     1,245,152        6,381,260   

Corporacion Financiera Colombiana SA

     136,072        2,660,440   

Ecopetrol SA

     6,141,181        17,631,561   

Grupo Argos SA

     604,204        7,564,724   
   

 

 

  
      36,606,280   

CZECH REPUBLIC — 0.76%

  

  

Telefonica O2 Czech Republic AS

     656,128        10,848,567   
   

 

 

  
      10,848,567   

EGYPT — 0.81%

  

  

Commercial International Bank (Egypt) SAE

     1,804,119        9,087,041   

Egyptian Kuwaiti Holding Co. SAE

     786,145        919,790   

National Societe Generale Bank SAE

     271,678        1,531,636   
   

 

 

  
      11,538,467   

INDIA — 2.52%

  

  

Bharat Petroleum Corp. Ltd.

     516,794        3,533,159   

Cipla Ltd.

     1,114,439        7,371,214   

Coal India Ltd.

     841,829        4,793,652   

Dr. Reddy’s Laboratories Ltd.

     86,443        2,789,199   

Infosys Ltd.

     58,483        3,124,898   

Oil & Natural Gas Corp. Ltd.

     146,126        841,893   

Piramal Enterprises Ltd.

     246,514        2,598,354   

Sun Pharmaceuticals Industries Ltd.

     734,183        10,824,830   
   

 

 

  
      35,877,199   

INDONESIA — 7.02%

  

  

PT Bank Central Asia Tbk

     21,552,500        24,533,295   

PT Bank Danamon Indonesia Tbk

     9,902,500        6,455,813   

PT Bank Mandiri (Persero) Tbk

     4,427,000        4,604,062   

PT Bank Negara Indonesia (Persero) Tbk

     10,135,500        4,824,680   

PT Bank Rakyat Indonesia (Persero) Tbk

     8,854,000        8,658,385   

PT Indo Tambangraya Megah Tbk

     116,500        485,241   

PT Indofood Sukses Makmur Tbk

     2,464,000        1,861,355   

PT Jasa Marga (Persero) Tbk

     14,679,000        8,430,532   
Security   Shares     Value  
   

PT Semen Gresik (Persero) Tbk

     3,163,000      $ 5,678,900   

PT Telekomunikasi Indonesia (Persero) Tbk

     15,494,500        17,236,599   

PT Unilever Indonesia Tbk

     7,223,000        17,079,273   
   

 

 

  
      99,848,135   

MALAYSIA — 8.03%

  

  

Berjaya Sports Toto Bhd

     4,310,513        5,858,002   

Hong Leong Bank Bhd

     2,516,400        11,871,578   

IHH Healthcare Bhda

     14,702,300        16,317,389   

Malayan Banking Bhd

     6,314,300        18,694,659   

Maxis Communications Bhd

     7,013,300        14,455,499   

Petronas Chemicals Group Bhd

     2,097,000        4,308,672   

Petronas Dagangan Bhd

     1,118,400        8,511,493   

Petronas Gas Bhd

     1,188,300        7,044,056   

Public Bank Bhd Foreign

     3,914,400        20,392,118   

Sime Darby Bhd

     1,747,500        5,207,725   

Tenaga Nasional Bhd

     745,600        1,674,313   
   

 

 

  
      114,335,504   

MEXICO — 2.39%

  

  

Arca Continental SAB de CV

     189,900        1,429,680   

Coca-Cola FEMSA SAB de CV Series L

     209,700        3,542,825   

El Puerto de Liverpool SA de CV Series C1

     1,118,400        12,604,587   

Grupo Financiero Santander Mexico SAB de CV Series B

     2,097,000        6,262,469   

Grupo Modelo SAB de CV Series C

     838,800        7,507,742   

Wal-Mart de Mexico SAB de CV Series V

     842,300        2,645,299   
   

 

 

  
      33,992,602   

MOROCCO — 0.23%

  

  

Attijariwafa Bank

     93,433        3,327,656   
   

 

 

  
      3,327,656   

PERU — 1.64%

  

  

Compania de Minas Buenaventura SA SP ADR

     220,651        5,653,079   

Credicorp Ltd.

     117,898        17,682,342   
   

 

 

  
      23,335,421   

PHILIPPINES — 2.99%

  

  

Aboitiz Power Corp.

     1,071,800        1,014,862   

Ayala Corp.

     67,570        963,030   

Bank of the Philippine Islands

     4,897,660        12,768,125   
 

 

CONSOLIDATED SCHEDULES OF INVESTMENTS

      43   

Table of Contents

Consolidated Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS MINIMUM VOLATILITY INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Energy Development Corp.

     4,686,800      $ 873,732   

Jollibee Foods Corp.

     1,160,690        3,622,518   

Philippine Long Distance Telephone Co.

     229,505        16,481,913   

San Miguel Corp.

     2,239,130        6,823,124   
   

 

 

  
      42,547,304   

POLAND — 1.03%

  

  

Asseco Poland SA

     127,451        1,733,178   

Polskie Gornictwo Naftowe i Gazownictwo SAa

     7,178,998        12,935,335   
   

 

 

  
      14,668,513   

RUSSIA — 0.71%

  

  

LUKOIL OAO

     156,576        10,043,532   
   

 

 

  
      10,043,532   

SOUTH AFRICA — 7.14%

  

  

Aspen Pharmacare Holdings Ltd.a

     820,626        14,924,131   

Bidvest Group Ltd.

     136,107        3,612,045   

Discovery Holdings Ltd.

     348,102        2,913,556   

Foschini Group Ltd. (The)

     137,039        1,634,962   

Growthpoint Properties Ltd.

     4,065,419        12,391,945   

Life Healthcare Group Holdings Ltd.

     2,990,555        11,248,702   

Massmart Holdings Ltd.

     46,134        958,908   

Pick n Pay Stores Ltd.

     627,236        3,129,644   

PPC Ltd.

     1,326,236        5,100,851   

Redefine Properties Ltd.

     7,616,304        8,344,007   

Remgro Ltd.

     625,873        11,858,015   

Shoprite Holdings Ltd.

     445,962        8,543,790   

Tiger Brands Ltd.

     125,587        4,247,958   

Truworths International Ltd.

     414,507        4,298,581   

Vodacom Group Ltd.

     638,187        8,474,593   
   

 

 

  
      101,681,688   

SOUTH KOREA — 9.10%

  

  

AmorePacific Corp.b

     9,786        9,254,371   

Celltrion Inc.

     96,339        2,388,846   

Cheil Industries Inc.

     13,715        1,117,136   

CJ CheilJedang Corp.b

     8,155        2,910,819   

E-Mart Co. Ltd.

     9,320        1,902,173   

Hyundai Marine & Fire Insurance Co. Ltd.

     74,560        2,165,550   

Kangwon Land Inc.

     267,950        8,128,883   

Korea Electric Power Corp.a

     53,590        1,615,878   

Korea Exchange Banka

     729,640        5,121,108   
Security   Shares     Value  
   

Korean Air Lines Co. Ltd.a

     48,930      $ 1,997,281   

KT Corp.

     30,290        1,001,438   

KT Corp. SP ADRa

     11,973        193,723   

KT&G Corp.b

     186,633        13,305,998   

LG Household & Health Care Ltd.

     11,650        6,681,274   

LG Uplus Corp.a

     158,440        1,243,728   

Lotte Shopping Co. Ltd.

     6,757        2,427,422   

NCsoft Corp.

     9,320        1,230,818   

NHN Corp.b

     37,781        9,176,370   

ORION Corp.

     2,563        2,532,644   

S1 Corp.

     112,108        7,195,536   

Samsung Electro-Mechanics Co. Ltd.

     9,087        801,430   

Samsung Electronics Co. Ltd.

     9,320        13,289,387   

Samsung Fire & Marine Insurance Co. Ltd.

     14,015        2,951,003   

Samsung Life Insurance Co. Ltd.

     79,488        7,634,430   

Samsung SDI Co. Ltd.

     24,698        3,170,431   

Shinhan Financial Group Co. Ltd.

     15,800        622,326   

SK C&C Co. Ltd.

     50,561        4,809,441   

SK Telecom Co. Ltd.

     71,764        11,830,050   

Yuhan Corp.

     16,776        2,765,466   
   

 

 

  
      129,464,960   

TAIWAN — 15.31%

  

  

Advantech Co. Ltd.

     1,899,000        8,449,531   

Asia Cement Corp.

     6,076,550        7,578,661   

China Airlines Ltd.a

     1,899,828        781,282   

China Steel Corp.

     11,650,375        10,681,752   

Chunghwa Telecom Co. Ltd.

     6,058,000        18,827,553   

Compal Electronics Inc.

     3,495,000        2,444,550   

Delta Electronics Inc.

     466,000        1,735,729   

Far EasTone Telecommunications Co. Ltd.

     6,792,000        15,728,529   

Feng Hsin Iron & Steel Co. Ltd.

     932,000        1,624,202   

First Financial Holding Co. Ltd.

     7,749,200        4,936,878   

Formosa Chemicals & Fibre Corp.

     2,330,000        5,937,606   

Formosa Petrochemical Corp.

     3,996,000        11,112,534   

Formosa Plastics Corp.

     2,831,000        7,157,063   

Formosa Taffeta Co. Ltd.

     3,539,000        3,429,668   

Giant Manufacturing Co. Ltd.

     699,000        3,828,814   

Hua Nan Financial Holdings Co. Ltd.

     6,990,000        4,087,995   

Inventec Corp.

     17,009,800        6,765,734   

Lite-On Technology Corp.

     7,922,475        12,217,593   
 

 

44    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Consolidated Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS MINIMUM VOLATILITY INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Nan Ya Plastics Corp.

     1,864,000      $ 3,575,130   

President Chain Store Corp.

     967,000        5,345,693   

Realtek Semiconductor Corp.

     2,103,300        5,005,409   

Synnex Technology International Corp.

     3,763,000        7,610,605   

Taiwan Cement Corp.

     3,728,000        4,781,501   

Taiwan Cooperative Financial Holding Co. Ltd.

     23,109,317        13,242,492   

Taiwan Mobile Co. Ltd.

     5,359,000        18,696,392   

Taiwan Semiconductor Manufacturing Co. Ltd.

     5,394,000        19,000,320   

Transcend Information Inc.

     1,433,000        4,081,658   

TSRC Corp.

     1,435,100        2,950,840   

U-Ming Marine Transport Corp.

     3,262,000        5,057,961   

United Microelectronics Corp.

     3,029,000        1,133,329   
   

 

 

  
      217,807,004   

THAILAND — 7.15%

  

  

Advanced Information Service PCL NVDR

     2,916,100        20,290,175   

Bangkok Bank PCL NVDR

     2,143,600        15,779,778   

Bangkok Dusit Medical Services PCL NVDR

     1,724,900        8,638,995   

Charoen Pokphand Foods PCL NVDR

     4,856,500        5,305,420   

CP All PCL NVDR

     14,798,900        23,504,136   

Kasikornbank PCL NVDR

     1,607,700        11,456,551   

PTT PCL NVDR

     448,600        5,277,647   

Siam Commercial Bank PCL NVDR

     1,911,200        11,435,079   
   

 

 

  
      101,687,781   
   

 

 

  

TOTAL COMMON STOCKS

  

  

(Cost: $1,291,452,757)

  

     1,368,827,989   

PREFERRED STOCKS — 3.60%

  

BRAZIL — 1.62%

  

  

AES Tiete SA

     655,900        6,764,352   
   

Companhia de Bebidas das Americas

     143,300        6,363,735   

Companhia Energetica de Minas Gerais

     69,950        828,956   

Companhia Paranaense de Energia Class B

     466,000        6,835,264   
Security   Shares     Value  
   

Eletropaulo Metropolitana Eletricidade de Sao Paulo SA

     372,800      $ 2,253,280   
   

 

 

  
      23,045,587   

CHILE — 0.05%

  

  

Sociedad Quimica y Minera de Chile SA Series B

     12,815        711,144   
   

 

 

  
      711,144   

COLOMBIA — 1.15%

  

  

Banco Davivienda SA

     598,577        8,543,207   

Bancolombia SA

     134,441        2,207,746   

Grupo Argos SA

     445,263        5,569,851   
   

 

 

  
      16,320,804   

RUSSIA — 0.25%

  

  

Surgutneftegas OJSC

     4,846,400        3,568,130   
   

 

 

  
      3,568,130   

SOUTH KOREA — 0.53%

  

  

Samsung Electronics Co. Ltd.

     9,355        7,602,706   
   

 

 

  
      7,602,706   
   

 

 

  

TOTAL PREFERRED STOCKS

  

  

(Cost: $51,212,045)

       51,248,371   

RIGHTS — 0.00%

  

BRAZIL — 0.00%

  

  

Companhia de Bebidas das Americasa

     75        —   

Companhia de Bebidas das Americas Preferreda

     155        —   
   

 

 

  
      —   
   

 

 

  

TOTAL RIGHTS

  

  

(Cost: $0)

       —   

SHORT-TERM INVESTMENTS — 0.25%

  

MONEY MARKET FUNDS — 0.25%

  

  

BlackRock Cash Funds: Institutional,
SL Agency Shares

   

  

0.21%c,d,e

     3,248,654        3,248,654   
 

 

CONSOLIDATED SCHEDULES OF INVESTMENTS

      45   

Table of Contents

Consolidated Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS MINIMUM VOLATILITY INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

BlackRock Cash Funds: Prime,
SL Agency Shares

    

0.18%c,d,e

     235,214      $ 235,214   
   

 

 

  
      3,483,868   
   

 

 

  

TOTAL SHORT-TERM INVESTMENTS

  

  

(Cost: $3,483,868)

       3,483,868   
   

 

 

  

TOTAL INVESTMENTS
IN SECURITIES — 100.04%

   

  

(Cost: $1,346,148,670)

       1,423,560,228   

Other Assets, Less Liabilities — (0.04)%

  

     (534,699 ) 
   

 

 

  

NET ASSETS — 100.00%

  

   $ 1,423,025,529   
   

 

 

  

NVDR  —  Non-Voting Depositary Receipts

SP ADR  —  Sponsored American Depositary Receipts

 

a 

Non-income earning security.

b 

All or a portion of this security represents a security on loan. See Note 5.

c 

Affiliated issuer. See Note 2.

d 

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

e 

All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to consolidated financial statements.

 

 

46    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Consolidated Schedule of Investments (Unaudited)

iSHARES® MSCI EMERGING MARKETS SMALL CAP INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

COMMON STOCKS — 98.27%

  

BRAZIL — 5.74%

  

  

Aliansce Shopping Centers SA

     2,800      $ 34,697   

Arezzo Industria e Comercio SA

     2,000        40,463   

Autometal SA

     2,800        29,018   

B2W Companhia Global do Varejoa

     2,800        19,813   

Banco ABC Brasil SAa

     51        374   

Brasil Brokers Participacoes SA

     7,200        26,038   

Brasil Insurance Participacoes e Administracao SA

     2,200        23,312   

Brookfield Incorporacoes SA

     9,800        15,614   

Companhia de Locacao das Americas

     4,200        28,254   

Equatorial Energia SA

     4,142        41,879   

Estacio Participacoes SA

     3,000        73,593   

Eternit SA

     5,000        21,724   

Even Construtora e Incorporadora SA

     8,400        42,487   

EZ TEC Empreendimentos e Participacoes SA

     2,400        33,322   

Fleury SA

     1,800        20,029   

Gafisa SAa

     22,000        47,625   

Grendene SA

     4,800        44,526   

Helbor Empreendimentos SA

     7,200        42,244   

HRT Participacoes em Petroleo SAa

     10,600        19,730   

Iguatemi Empresa de Shopping Centers SA

     2,000        27,535   

Iochpe-Maxion SA

     2,400        31,622   

Julio Simoes Logistica SA

     3,600        30,044   

LLX Logistica SAa

     12,200        12,341   

LPS Brasil — Consultoria de Imoveis SA

     1,800        32,593   

Marfrig Alimentos SAa

     7,600        37,864   

Mills Estruturas e Servicos de Engenharia SA

     2,400        39,039   

Restoque Comercio e Confeccoes de Roupas SA

     5,400        27,750   

Rossi Residencial SA

     8,800        15,623   

Santos Brasil Participacoes SA Units

     1,400        21,349   

Sao Martinho SA

     2,000        28,223   

SLC Agricola SA

     2,800        27,446   

Tecnisa SA

     4,800        21,219   

Tegma Gestao Logistica SA

     1,800        27,768   

TPI — Triunfo Participacoes e Investimentos SA

     3,600        22,797   
Security   Shares     Value  
   

UNICASA Industria de Moveis SAa

     4,200      $ 20,818   

Valid Solucoes e Servicos de Seguranca em Meios de Pagamento e Identificacao SA

     3,200        67,493   

Vanguarda Agro SAa

     104,498        24,841   
   

 

 

  
      1,121,107   

CHILE — 2.13%

    

Administradora de Fondos de Pensiones Provida SA

     6,854        47,724   

Besalco SA

     21,730        41,596   

Compania SudAmericana de Vapores SAa

     240,804        26,750   

Inversiones Aguas Metropolitanas SA

     20,226        42,349   

Norte Grande SA

     1,861,196        20,845   

Parque Arauco SA

     22,826        63,515   

SalfaCorp SA

     20,288        51,422   

Sociedad Matriz SAAM SAa

     524,098        64,370   

Sonda SA

     15,954        56,963   
   

 

 

  
      415,534   

CHINA — 18.37%

    

361 Degrees International Ltd.

     86,000        25,174   

Ajisen (China) Holdings Ltd.

     22,000        15,887   

AMVIG Holdings Ltd.

     52,000        21,592   

Anhui Expressway Co. Ltd. Class H

     36,000        20,612   

Anton Oilfield Services Group

     48,000        27,296   

Anxin-China Holdings Ltd.

     112,000        25,852   

Asia Cement China Holdings Corp.

     48,000        25,935   

Asian Citrus Holdings Ltd.

     40,000        19,188   

Beijing Capital Land Ltd. Class H

     84,000        38,237   

Beijing Enterprises Water Group Ltd.

     116,000        35,900   

Biostime International Holdings Ltd.

     10,000        43,844   

Boshiwa International Holding Ltd.a,b

     32,000        3,466   

C C Land Holdings Ltd.

     106,000        34,856   

China Automation Group Ltd.

     86,000        23,067   

China Datang Corp. Renewable Power Co. Ltd. Class H

     168,000        37,045   

China Everbright International Ltd.

     88,000        58,554   

China High Speed Transmission Equipment Group Co. Ltd.a

     64,000        32,104   

China Huiyuan Juice Group Ltd.a

     63,000        25,266   

China Lilang Ltd.

     20,000        12,379   

China Lumena New Materials Corp.

     140,000        32,857   

China Medical System Holdings Ltd.

     38,000        34,791   
 

 

CONSOLIDATED SCHEDULES OF INVESTMENTS

      47   

Table of Contents

Consolidated Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS SMALL CAP INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

China Metal Recycling Holdings Ltd.b

     12,000      $ 10,944   

China Modern Dairy Holdings Ltd.a

     82,000        27,492   

China Oil and Gas Group Ltd.a

     280,000        55,243   

China Overseas Grand Oceans Group Ltd.

     24,000        33,734   

China Pharmaceutical Group Ltd.a

     72,000        28,968   

China Power International Development Ltd.

     100,000        32,238   

China Power New Energy Development Co. Ltd.a

     560,000        38,995   

China Precious Metal Resources Holdings Co. Ltd.a

     152,000        27,441   

China Rare Earth Holdings Ltd.

     104,000        22,530   

China Rongsheng Heavy Industries Group Holdings Ltd.

     109,000        19,678   

China Shineway Pharmaceutical Group Ltd.

     14,000        23,866   

China Singyes Solar Technologies Holdings Ltd.

     36,000        40,434   

China South City Holdings Ltd.

     196,000        32,604   

China Suntien Green Energy Corp. Ltd. Class H

     130,000        31,348   

China Travel International Investment Hong Kong Ltd.

     156,000        32,790   

China Vanadium Titano-Magnetite Mining Co. Ltd.

     130,000        30,342   

China Water Affairs Group Ltd.

     100,000        32,238   

China Wireless Technologies Ltd.

     88,000        23,603   

China Yongda Automobiles Services Holdings Ltd.a

     34,000        36,741   

China Yurun Food Group Ltd.a

     50,000        35,849   

China ZhengTong Auto Services Holdings Ltd.a

     35,000        27,983   

Chinasoft International Ltd.a

     80,000        19,085   

Chongqing Machinery & Electric Co. Ltd. Class H

     124,000        20,147   

CITIC Dameng Holdings Ltd.

     176,000        18,383   

CITIC Resources Holdings Ltd.a

     224,000        32,351   

Comba Telecom Systems Holdings Ltd.

     46,000        15,304   

Cosco International Holdings Ltd.

     76,000        33,713   

Dazhong Transportation Group Co. Ltd. Class B

     43,200        28,080   

DBA Telecommunications (Asia) Holdings Ltd.

     40,000        25,790   
Security   Shares     Value  
   

Digital China Holdings Ltd.

     36,000      $ 56,543   

Dongyue Group Ltd.

     48,000        31,815   

Extrawell Pharmaceutical Holdings Ltd.a

     200,000        18,827   

Fantasia Holdings Group Co. Ltd.

     159,000        25,014   

First Tractor Co. Ltd. Class Ha

     24,000        23,428   

Fufeng Group Ltd.

     52,000        22,262   

Global Bio-Chem Technology Group Co. Ltd.

     116,000        13,313   

Haitian International Holdings Ltd.

     24,000        31,010   

Hangzhou Steam Turbine Co. Ltd. Class B

     26,080        47,385   

Harbin Electric Co. Ltd. Class H

     32,000        27,977   

Hengdeli Holdings Ltd.

     64,000        20,880   

Hopson Development Holdings Ltd.a

     32,000        55,212   

Hunan Nonferrous Metal Corp. Ltd. Class Ha

     84,000        28,055   

Inspur International Ltd.

     670,000        25,055   

Interchina Holdings Co. Ltd.a

     340,000        19,291   

Jiangsu Future Land Co. Ltd. Class B

     49,800        45,716   

Ju Teng International Holdings Ltd.

     48,000        25,997   

Kaisa Group Holdings Ltd.a

     84,000        27,946   

Kingdee International Software Group Co. Ltd.a

     132,000        23,320   

Kingsoft Corp. Ltd.

     48,000        41,595   

KWG Property Holding Ltd.

     36,000        24,697   

Labixiaoxin Snacks Group Ltd.

     58,000        29,318   

Li Ning Co. Ltd.a

     45,000        27,796   

Lijun International Pharmaceutical (Holding) Co. Ltd.

     72,000        19,869   

Lonking Holdings Ltd.

     76,000        20,483   

Luthai Textile Co. Ltd. Class B

     21,800        21,196   

MIE Holdings Corp.

     56,000        16,176   

Minth Group Ltd.

     28,000        36,612   

New World Department Store China Ltd.

     34,000        21,133   

North Mining Shares Co. Ltd.a

     580,000        34,404   

NVC Lighting Holdings Ltd.

     72,000        18,105   

PCD Stores (Group) Ltd.

     164,000        24,743   

Peak Sport Products Co. Ltd.

     124,000        23,505   

Ports Design Ltd.

     20,000        17,770   

Renhe Commercial Holdings Co. Ltd.a

     468,000        34,399   

REXLot Holdings Ltd.

     400,000        36,622   

Semiconductor Manufacturing International Corp.a

     854,000        49,005   

Shenzhen Expressway Co. Ltd. Class H

     44,000        17,986   
 

 

48    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Consolidated Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS SMALL CAP INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Shenzhen International Holdings Ltd.

     530,000      $ 74,495   

Shenzhen Investment Ltd.

     136,000        59,452   

Shenzhou International Group Holdings Ltd.

     18,000        51,065   

Shougang Concord International Enterprises Co. Ltd.a

     580,000        37,396   

Sino Biopharmaceutical Ltd.

     128,000        73,616   

Sino Oil And Gas Holdings Ltd.a

     680,000        14,118   

Sinotrans Ltd. Class H

     198,000        38,554   

Sinotrans Shipping Ltd.

     166,000        46,665   

Skyworth Digital Holdings Ltd.

     72,000        48,372   

Sparkle Roll Group Ltd.

     288,000        29,710   

Sunac China Holdings Ltd.

     50,000        38,750   

TCL Communication Technology Holdings Ltd.

     46,000        13,940   

Tech Pro Technology Development Ltd.a

     84,000        31,846   

Tianjin Development Holdings Ltd.a

     72,000        54,407   

Tianjin Port Development Holdings Ltd.

     204,000        30,778   

Tianneng Power International Ltd.

     44,000        32,908   

Tibet 5100 Water Resources Holdings Ltd.

     94,000        28,485   

Towngas China Co. Ltd.

     38,000        33,370   

Travelsky Technology Ltd. Class H

     50,000        32,754   

Vinda International Holdings Ltd.

     22,000        31,093   

VODone Ltd.

     192,000        16,341   

West China Cement Ltd.

     108,000        20,612   

Winsway Coking Coal Holding Ltd.

     84,000        12,132   

Xingda International Holdings Ltd.

     48,000        22,654   

Xinjiang Xinxin Mining Industry Co. Ltd. Class H

     86,000        19,296   

XTEP International Holdings Ltd.

     51,000        20,782   

Yanchang Petroleum International Ltd.a

     380,000        26,951   

Yip’s Chemical Holdings Ltd.

     28,000        27,513   

Yuexiu Real Estate Investment Trust

     90,000        47,467   

Yuexiu Transport Infrastructure Ltd.

     68,000        38,144   

Zhejiang Southeast Electric Power Co. Ltd. Class B

     22,600        16,927   
   

 

 

  
      3,586,869   

CZECH REPUBLIC — 0.46%

    

Central European Media Enterprises Ltd. AS Class Aa

     3,304        17,212   

Pegas Nonwovens SA

     1,342        36,185   

Philip Morris CR AS

     62        37,173   
   

 

 

  
      90,570   
Security   Shares     Value  
   

EGYPT — 0.30%

    

Orascom Telecom Media And Technology Holding SAE SP GDR

     120,832      $ 57,999   
   

 

 

  
      57,999   

INDIA — 6.60%

    

Amtek Auto Ltd.

     10,908        13,854   

Andhra Bank

     8,620        14,418   

Apollo Hospitals Enterprise Ltd.

     3,898        59,246   

Ashok Leyland Ltd.

     74,120        30,313   

Aurobindo Pharma Ltd.

     9,344        27,634   

Bharat Forge Ltd.

     8,530        33,545   

Biocon Ltd.

     6,138        30,839   

CESC Ltd.

     5,014        25,791   

Cox & Kings Ltd.

     6,488        15,312   

Educomp Solutions Ltd.

     4,456        6,806   

EID Parry India Ltd.

     8,358        22,184   

Emami Ltd.

     2,884        31,483   

Federal Bank Ltd.

     7,156        64,878   

Financial Technologies (India) Ltd.

     2,348        36,423   

Fortis Healthcare Ltd.a

     15,296        27,286   

Great Eastern Shipping Co. Ltd. (The)

     7,250        31,609   

Gujarat Fluorochemicals Ltd.

     3,058        15,752   

Gujarat Gas Co. Ltd.

     3,100        15,801   

Gujarat Mineral Development Corp. Ltd.

     10,318        35,086   

Gujarat State Petronet Ltd.

     12,254        14,595   

GVK Power & Infrastructure Ltd.a

     104,440        20,541   

Hexaware Technologies Ltd.

     17,672        28,048   

Hindustan Construction Co. Ltd.a

     104,172        29,391   

Housing Development & Infrastructure Ltd.a

     15,770        17,493   

India Infoline Ltd.

     20,722        25,024   

Indiabulls Financial Services Ltd.

     9,614        44,478   

Indiabulls Infrastructure and Power Ltd.a

     125,532        11,652   

Indian Hotels Co. Ltd.

     35,152        34,890   

Indraprastha Gas Ltd.

     3,744        17,590   

IVRCL Ltd. Class La

     31,884        15,003   

Jammu & Kashmir Bank Ltd.

     1,736        40,278   

Jindal Saw Ltd.

     14,750        24,197   

Jubilant Foodworks Ltd.a

     1,486        28,592   

Mahindra & Mahindra Financial Services Ltd.

     15,040        51,585   

Manappuram Finance Ltd.

     38,776        24,732   
 

 

CONSOLIDATED SCHEDULES OF INVESTMENTS

      49   

Table of Contents

Consolidated Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS SMALL CAP INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

MAX India Ltd.

     11,988      $ 53,500   

PTC India Ltd.

     25,604        30,778   

Redington India Ltd.

     19,788        30,916   

REI Agro Ltd.

     82,164        13,668   

Strides Arcolab Ltd.

     2,062        34,765   

Syndicate Bank

     10,770        23,122   

Tata Global Beverages Ltd.

     17,962        41,335   

Thermax Ltd.

     3,488        37,220   

Torrent Pharmaceuticals Ltd.

     1,848        22,814   

Voltas Ltd.

     13,922        20,229   

Welspun Corp. Ltd.

     12,246        13,134   
   

 

 

  
      1,287,830   

INDONESIA — 4.80%

    

PT Agis Tbka

     223,000        10,384   

PT Agung Podomoro Land Tbka

     563,000        26,509   

PT AKR Corporindo Tbk

     73,000        33,805   

PT Alam Sutera Realty Tbk

     445,000        42,826   

PT Bakrie and Brothers Tbka

     2,040,999        10,560   

PT Bakrie Sumatera Plantations Tbk

     1,522,000        17,167   

PT Bakrie Telecom Tbka

     821,000        4,248   

PT Bakrieland Development Tbka

     1,911,000        11,668   

PT Bank Bukopin Tbk

     222,000        17,919   

PT Bank Pembangunan Daerah Jawa Barat dan Banten Tbk

     152,000        19,190   

PT Bank Tabungan Negara (Persero) Tbk

     127,323        21,476   

PT Benakat Petroleum Energy Tbka

     928,000        14,789   

PT Bhakti Investama Tbk

     1,028,000        54,254   

PT Ciputra Development Tbk

     516,000        59,270   

PT Citra Marga Nusaphala Persada Tbk

     91,000        16,950   

PT Energi Mega Persada Tbka

     1,203,000        12,947   

PT Erajaya Swasembada Tbka

     73,000        22,096   

PT Gajah Tunggal Tbk

     66,000        15,026   

PT Garuda Indonesia (Persero) Tbka

     376,000        25,680   

PT Holcim Indonesia Tbk

     84,000        31,945   

PT Japfa Comfeed Indonesia Tbk

     34,000        28,675   

PT Kawasan Industri Jababeka Tbka

     984,000        26,475   

PT Krakatau Steel (Persero) Tbk

     173,000        11,995   

PT Lippo Karawaci Tbk

     693,000        81,036   

PT Medco Energi Internasional Tbk

     97,000        16,863   

PT Mitra Adiperkasa Tbk

     37,000        29,865   

PT MNC Sky Vision Tbka

     75,485        16,599   

PT Ramayana Lestari Sentosa Tbk

     246,000        33,603   
Security   Shares     Value  
   

PT Sampoerna Agro Tbk

     48,000      $ 10,928   

PT Sentul City Tbka

     1,042,000        31,809   

PT Summarecon Agung Tbk

     224,000        53,894   

PT Surya Semesta Internusa Tbk

     161,300        25,038   

PT Timah (Persero) Tbk

     147,000        22,361   

PT Tower Bersama Infrastructure Tbka

     78,000        45,201   

PT Trada Maritime Tbka

     227,000        33,356   
   

 

 

  
      936,407   

MALAYSIA — 4.68%

    

Affin Holdings Bhd

     19,200        20,502   

Carlsberg Brewery Malaysia Bhd

     7,600        31,723   

Dialog Group Bhd

     53,080        40,018   

DRB-Hicom Bhd

     42,200        35,093   

Eastern & Oriental Bhd

     48,200        24,642   

Hai-O Enterprise Bhd

     38,600        28,352   

Hibiscus Petroleum Bhda

     21,200        10,152   

IGB Corp. Bhd

     62,000        45,138   

IJM Land Bhd

     31,000        21,867   

KLCC Property Holdings Bhd

     25,200        53,327   

KNM Group Bhda

     86,400        13,279   

KPJ Healthcare Bhd

     18,200        34,333   

Mah Sing Group Bhd

     31,000        21,065   

Malaysian Airline System Bhda

     42,800        10,179   

Malaysian Pacific Industries Bhd

     23,800        19,098   

Malaysian Resources Corp. Bhd

     77,800        32,474   

Media Prima Bhd

     53,000        37,386   

Multi-Purpose Holdings Bhd

     32,400        35,645   

OSK Holdings Bhd

     72,287        33,682   

POS Malaysia Bhd

     34,800        42,564   

QL Resources Bhd

     23,600        22,909   

Sarawak Oil Palms Bhd

     8,400        13,726   

Scomi Group Bhda

     301,200        30,213   

Sunway Real Estate Investment Trust Bhd

     127,800        62,442   

TAN Chong Motor Holdings Bhd

     23,800        39,583   

TIME dotCom Bhda

     20,400        25,215   

Top Glove Corp. Bhd

     19,400        34,462   

Uchi Technologies Bhd

     85,200        32,531   

Wah Seong Corp. Bhd

     35,000        18,800   

WCT Bhd

     61,090        43,685   
   

 

 

  
      914,085   

MEXICO — 2.17%

    

Alsea SAB de CVa

     21,259        53,189   
 

 

50    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Consolidated Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS SMALL CAP INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Axtel SAB de CV CPOa

     81,800      $ 18,821   

Bolsa Mexicana de Valores SAB de CV

     12,200        29,684   

Consorcio ARA SAB de CVa

     92,800        35,949   

Corporacion Geo SAB de CV Series Ba

     25,800        21,443   

Desarrolladora Homex SAB de CVa

     12,400        24,639   

Empresas ICA SAB de CVa

     31,800        91,782   

Genomma Lab Internacional SAB de CV Series Ba

     27,200        65,265   

Gruma SAB de CV Series Ba

     8,400        29,576   

Grupo Herdez SAB de CV

     7,200        21,778   

TV Azteca SAB de CV CPO

     37,800        26,328   

Urbi Desarrollos Urbanos SAB de CVa

     13,000        4,385   
   

 

 

  
      422,839   

PHILIPPINES — 2.42%

    

Belle Corp.a

     239,633        34,772   

Cebu Air Inc.

     10,560        17,141   

Filinvest Land Inc.

     1,048,000        50,776   

First Gen Corp.a

     61,200        39,586   

First Philippine Holdings Corp.

     10,020        28,020   

Manila Water Co. Inc.

     44,600        39,817   

Megaworld Corp.

     570,000        55,093   

Philex Petroleum Corp.a

     18,000        14,875   

Philippine National Banka

     12,350        31,528   

Puregold Price Club Inc.

     45,649        46,480   

Robinsons Land Corp.

     91,000        50,916   

Security Bank Corp.

     9,000        39,112   

SM Development Corp.

     118,800        25,040   
   

 

 

  
      473,156   

POLAND — 1.32%

    

Budimex SA

     1,458        33,986   

Getin Noble Bank SAa

     50,046        29,795   

Globe Trade Centre SAa

     10,464        26,864   

KRUK SAa

     2,080        35,611   

Lubelski Wegiel Bogdanka SA

     1,592        64,893   

Netia SAa

     17,966        26,260   

Warsaw Stock Exchange SA

     3,014        39,876   
   

 

 

  
      257,285   

RUSSIA — 0.63%

  

Aeroflot — Russian Airlines OJSC

     18,456        31,964   

OGK-2 OJSC

     1,236,461        15,499   

PIK Groupa

     7,400        15,872   

RBC OJSCa

     50,600        18,765   
Security   Shares     Value  
   

Sollers OJSCa

     1,543      $ 40,941   
   

 

 

  
      123,041   

SOUTH AFRICA — 8.06%

    

Acucap Properties Ltd.

     9,420        48,797   

Adcock Ingram Holdings Ltd.

     6,272        39,061   

Aeci Ltd.

     4,812        50,948   

African Oxygen Ltd.

     11,642        28,636   

Allied Technologies Ltd.

     2,424        9,823   

Astral Foods Ltd.

     2,278        22,849   

AVI Ltd.

     7,452        46,094   

Brait SEa

     18,638        67,218   

Capital Property Fund

     27,116        32,517   

Cipla Medpro South Africa Ltd.

     25,008        26,728   

City Lodge Hotels Ltd.

     2,436        29,484   

Clicks Group Ltd.

     8,900        58,770   

Clover Industries Ltd.

     6,910        13,092   

Coronation Fund Managers Ltd.

     7,118        37,436   

DataTec Ltd.

     9,020        48,967   

DRDGOLD Ltd.

     39,770        29,209   

Emira Property Fund

     21,638        35,763   

Famous Brands Ltd.

     3,362        31,287   

Fountainhead Property Trust

     58,186        56,418   

Grindrod Ltd.

     19,756        39,214   

Group Five Ltd.

     6,338        24,723   

Hyprop Investments Ltd. Units

     5,246        42,300   

Illovo Sugar Ltd.

     10,540        36,063   

JD Group Ltd.

     5,590        24,459   

JSE Ltd.

     4,710        35,747   

Lewis Group Ltd.

     3,102        22,478   

Mondi Ltd.

     5,210        66,426   

Murray & Roberts Holdings Ltd.a

     15,658        43,644   

Nampak Ltd.

     19,984        68,308   

Omnia Holdings Ltd.

     2,854        47,711   

Palabora Mining Co. Ltd.

     984        11,262   

Pick n Pay Holdings Ltd.

     10,140        21,246   

Pinnacle Technology Holdings Ltd.

     5,606        12,933   

Resilient Property Income Fund Ltd.

     8,286        47,051   

Royal Bafokeng Platinum Ltd.a

     2,174        13,471   

SA Corporate Real Estate Fund Nominees Pty Ltd.

     94,064        42,143   

Sun International Ltd.

     4,362        49,188   

Super Group Ltd.a

     16,200        38,276   

Sycom Property Fund

     7,384        23,042   
 

 

CONSOLIDATED SCHEDULES OF INVESTMENTS

      51   

Table of Contents

Consolidated Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS SMALL CAP INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Tongaat Hulett Ltd.

     4,508      $ 69,835   

Vukile Property Fund Ltd.

     18,714        37,417   

Wilson Bayly Holmes-Ovcon Ltd.

     2,564        44,292   
   

 

 

  
      1,574,326   

SOUTH KOREA — 16.00%

    

3S Korea Co. Ltd.a

     1,806        13,309   

Able C&C Co. Ltd.

     440        29,460   

Ahnlab Inc.

     196        11,512   

Asiana Airlines Inc.a

     4,000        21,980   

Binggrae Co. Ltd.

     374        47,146   

Capro Corp.

     1,040        11,093   

Chabio & Diostech Co. Ltd.a

     2,748        27,535   

CJ CGV Co. Ltd.

     1,200        46,656   

CJ E&M Corp.a

     1,040        36,017   

CJ O Shopping Co. Ltd.

     136        38,496   

Cosmax Inc.

     640        27,188   

CrucialTec Co. Ltd.a

     2,134        24,635   

Daesang Corp.

     1,120        33,823   

Daishin Securities Co. Ltd.

     3,840        36,704   

Daum Communications Corp.

     514        45,380   

Digitech Systems Co. Ltd.a

     1,886        17,853   

Dong-A Pharmaceutical Co. Ltd.

     390        44,661   

Dongsuh Companies Inc.

     1,624        31,870   

Dongyang Mechatronics Corp.

     2,260        24,524   

Doosan Engine Co. Ltd.a

     1,520        11,230   

Duksan Hi-Metal Co. Ltd.a

     1,010        23,878   

Fila Korea Ltd.

     454        24,695   

Foosung Co. Ltd.a

     3,220        13,991   

Gamevil Inc.a

     226        20,308   

GemVax & Kael Co. Ltd.a

     1,034        34,950   

Grand Korea Leisure Co. Ltd.

     1,500        38,441   

Green Cross Corp.

     238        32,640   

GS Home Shopping Inc.

     182        32,641   

Halla Climate Control Corp.

     1,180        27,135   

Hana Tour Service Inc.

     588        36,817   

Handsome Co. Ltd.

     1,060        26,529   

Hanjin Heavy Industries & Construction Co. Ltd.a

     1,540        12,843   

Hanjin Shipping Co. Ltd.a

     3,740        37,820   

Hanmi Pharm Co. Ltd.a

     342        48,008   

Hansol Paper Co.

     3,620        36,273   

Hanwha Investment & Securities Co. Ltd.

     7,580        32,551   

Hotel Shilla Co. Ltd.

     1,480        65,128   
Security   Shares     Value  
   

Huchems Fine Chemical Corp.

     1,300      $ 29,354   

Hwa Shin Co. Ltd.

     2,040        21,100   

Hyundai Corp.

     800        18,175   

Hyundai Greenfood Co. Ltd.

     1,860        29,974   

Hyundai Home Shopping Network Corp.

     194        24,366   

Ilyang Pharmaceutical Co. Ltd.a

     800        23,937   

Infraware Inc.a

     2,040        22,419   

Interflex Co. Ltd.a

     370        15,411   

INTOPS Co. Ltd.

     1,220        36,054   

Jusung Engineering Co. Ltd.a

     3,422        16,907   

KEPCO Plant Service & Engineering Co. Ltd.

     688        33,357   

KIWOOM Securities Co. Ltd.

     698        39,772   

Kolon Industries Inc.

     696        35,995   

Komipharm International Co. Ltd.a

     2,310        23,040   

Korea Petrochemical Ind Co. Ltd.a

     260        10,937   

Korean Reinsurance Co.

     3,606        38,963   

KT Skylife Co. Ltd.

     1,140        33,058   

Kumho Industrial Co. Ltd.a

     3,780        7,924   

Kumho Tire Co. Inc.a

     2,840        32,653   

LG Fashion Corp.

     880        24,137   

LG Hausys Ltd.

     598        43,960   

LG International Corp.

     1,342        52,672   

LG Life Sciences Ltd.a

     840        43,597   

LIG Insurance Co. Ltd.

     1,660        35,796   

Lock & Lock Co. Ltd.

     1,185        30,259   

Lotte Chilsung Beverage Co. Ltd.

     30        40,006   

Lotte Samkang Co. Ltd.

     56        38,374   

Medipost Co. Ltd.a

     394        34,567   

MegaStudy Co. Ltd.

     224        16,322   

Melfas Inc.

     1,000        18,978   

Meritz Finance Group Inc.a

     6,400        23,228   

Meritz Fire & Marine Insurance Co. Ltd.

     2,380        25,496   

Namhae Chemical Corp.

     2,500        17,593   

Namyang Dairy Products Co. Ltd.

     38        35,269   

Neowiz Games Corp.a

     620        11,051   

Nexen Tire Corp.

     1,680        24,126   

NongShim Co. Ltd.

     164        43,619   

OCI Materials Co. Ltd.

     310        10,020   

Paradise Co. Ltd.

     1,782        32,091   

Partron Co. Ltd.

     1,840        40,102   

Poongsan Corp.

     1,000        26,920   

POSCO Chemtech Co. Ltd.

     126        14,150   
 

 

52    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Consolidated Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS SMALL CAP INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Posco ICT Co. Ltd.

     3,916      $ 27,847   

RNL BIO Co. Ltd.a

     4,460        10,647   

S&T Dynamics Co. Ltd.

     2,120        23,788   

Samsung Fine Chemicals Co. Ltd.

     942        48,804   

Samyang Holdings Corp.

     256        16,407   

SeAH Besteel Corp.

     780        24,095   

Seegene Inc.a

     420        24,785   

Seoul Semiconductor Co. Ltd.

     1,984        52,952   

SFA Engineering Corp.

     608        33,072   

SK Broadband Co. Ltd.a

     9,332        38,997   

SK Chemicals Co. Ltd.

     702        37,148   

SK Communications Co. Ltd.a

     1,930        12,815   

SK Securities Co. Ltd.

     28,420        28,346   

SKC Co. Ltd.

     841        27,222   

SM Entertainment Co.a

     720        28,991   

Soulbrain Co. Ltd.

     562        21,799   

STX Corp. Co. Ltd.

     2,220        15,458   

STX Engine Co. Ltd.a

     2,500        18,516   

STX Offshore & Shipbuilding Co. Ltd.a

     2,460        15,108   

Sung Kwang Bend Co. Ltd.

     1,338        29,532   

Sungwoo Hitech Co. Ltd.

     1,618        21,293   

Suprema Inc.a

     1,572        28,600   

Taekwang Industrial Co. Ltd.

     18        17,205   

Taewoong Co. Ltd.a

     722        14,669   

Taihan Electric Wire Co. Ltd.a

     4,601        16,486   

TK Corp.a

     1,294        30,354   

TONGYANG Life Insurance Co.

     1,840        18,692   

TONGYANG Securities Inc.

     6,960        26,546   

ViroMed Co. Ltd.a

     800        24,935   

Wonik IPS Co. Ltd.a

     3,318        15,413   

Woongjin Thinkbig Co. Ltd.a

     2,140        18,143   

YESCO Co. Ltd.

     620        18,494   

Youngone Corp.

     1,020        35,324   
   

 

 

  
      3,123,932   

TAIWAN — 17.51%

    

Ability Enterprise Co. Ltd.

     36,000        33,735   

ALI Corp.

     26,000        30,148   

Altek Corp.

     34,133        20,135   

Ambassador Hotel Ltd. (The)

     18,000        18,475   

AmTRAN Technology Co. Ltd.

     52,312        36,413   

Asia Optical Co. Inc.a

     20,000        20,663   

Asia Polymer Corp.

     28,400        24,220   

BES Engineering Corp.

     100,000        30,539   
Security   Shares     Value  
   

Career Technology (MFG.) Co. Ltd.

     14,000      $ 17,343   

Cathay Real Estate Development Co. Ltd.

     42,000        21,519   

Cheng Loong Corp.

     88,000        37,672   

China Bills Finance Corp.

     60,000        23,562   

China Manmade Fibers Corp.a

     62,000        21,108   

China Steel Chemical Corp.

     8,000        37,888   

China Synthetic Rubber Corp.

     34,000        37,878   

Chipbond Technology Corp.

     26,000        53,899   

Chong Hong Construction Co.

     8,040        26,993   

Chroma ATE Inc.

     18,000        41,319   

Chung Hung Steel Corp.a

     84,000        28,258   

Compal Communications Inc.a

     20,000        20,764   

Compeq Manufacturing Co. Ltd.

     76,000        28,052   

Coretronic Corp.

     36,000        28,881   

CSBC Corp.

     46,420        27,696   

Cyberlink Corp.

     10,213        31,328   

CyberTAN Technology Inc.

     28,000        23,596   

D-Link Corp.

     44,000        27,142   

Dynapack International Technology Corp.

     6,000        22,247   

Elan Microelectronics Corp.

     24,000        50,562   

Faraday Technology Corp.

     28,000        31,713   

FLEXium Interconnect Inc.

     6,387        20,065   

Formosan Rubber Group Inc.

     30,000        21,944   

G Tech Optoelectronics Corp.

     8,000        19,173   

Gemtek Technology Corp.

     24,000        30,904   

Genesis Photonics Inc.a

     24,715        18,161   

Genius Electronic Optical Co. Ltd.

     4,000        26,832   

Gigabyte Technology Co. Ltd.

     42,000        37,163   

Gigastorage Corp.

     20,400        16,022   

Global Unichip Corp.

     8,000        25,564   

Gloria Material Technology Corp.

     28,684        22,577   

Goldsun Development & Construction Co. Ltd.

     60,000        23,461   

Grand Pacific Petrochemical Corp.

     40,000        20,832   

Great Wall Enterprise Co. Ltd.

     20,253        18,296   

Greatek Electronics Inc.

     42,000        34,048   

Green Energy Technology Inc.a

     24,125        21,347   

HannStar Display Corp.a

     73,000        9,720   

HannsTouch Solution Inc.a

     56,000        17,347   

Hey Song Corp.

     20,000        25,618   

Ho Tung Chemical Corp.a

     56,716        26,096   

Holy Stone Enterprise Co. Ltd.

     50,000        44,326   

Huaku Development Co. Ltd.

     8,080        20,019   
 

 

CONSOLIDATED SCHEDULES OF INVESTMENTS

      53   

Table of Contents

Consolidated Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS SMALL CAP INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Huang Hsiang Construction Co.

     8,000      $ 20,144   

Hung Sheng Construction Co. Ltd.

     74,000        51,135   

Infortrend Technology Inc.

     40,000        23,056   

ITEQ Corp.

     34,600        39,363   

Jih Sun Financial Holdings Co. Ltd.

     58,205        17,560   

Kenda Rubber Industrial Co. Ltd.

     22,715        34,034   

Kerry TJ Logistics Co. Ltd.

     20,000        31,348   

Kindom Construction Co.

     26,000        22,611   

King Yuan Electronics Co. Ltd.

     80,000        52,045   

King’s Town Banka

     28,000        24,823   

Kinpo Electronics Inc.

     154,000        36,182   

Lealea Enterprise Co. Ltd.

     46,690        17,469   

Lien Hwa Industrial Corp.

     30,000        19,567   

LITE-ON IT Corp.

     30,074        32,997   

Makalot Industrial Co. Ltd.

     12,000        40,126   

Masterlink Securities Corp.

     52,000        16,985   

Mercuries & Associates Ltd.

     18,360        16,524   

Micro-Star International Co. Ltd.

     62,000        29,363   

Microbio Co. Ltd.

     22,280        27,450   

MIN AIK Technology Co. Ltd.

     12,000        37,416   

MiTAC International Corp.

     92,000        34,423   

Pan-International Industrial Corp.a

     32,000        26,966   

PChome Online Inc.

     4,312        21,512   

Phihong Technology Co. Ltd.

     24,000        20,832   

Pixart Imaging Inc.

     14,635        31,967   

President Securities Corp.a

     34,510        20,241   

Prince Housing & Development Corp.

     32,709        22,382   

Radium Life Tech Co. Ltd.

     46,182        40,474   

Ritek Corp.a

     232,000        29,326   

Sanyang Industry Co. Ltd.a

     46,820        38,429   

Senao International Co. Ltd.

     6,000        19,436   

Shihlin Electric & Engineering Corp.

     30,000        36,304   

Shining Building Business Co. Ltd.a

     24,000        19,214   

Shinkong Synthetic Fibers Corp.

     84,135        26,942   

Shinkong Textile Co. Ltd.

     18,000        23,117   

Silitech Technology Corp.

     12,060        22,440   

Sinyi Realty Co.

     12,360        19,477   

Soft-World International Corp.

     14,140        24,499   

Solar Applied Materials Technology Corp.

     16,799        20,442   

Solartech Energy Corp.a

     24,000        16,989   

Ta Chen Stainless Pipe Co. Ltd.

     84,000        41,906   

Ta Chong Bank Ltd.a

     60,900        21,965   

Taichung Commercial Bank Co. Ltd.

     56,285        20,206   
Security   Shares     Value  
   

Taiflex Scientific Co. Ltd.

     14,000      $ 17,461   

Taiwan Hon Chuan Enterprise Co. Ltd.

     18,000        45,263   

Taiwan Life Insurance Co. Ltd.a

     30,850        24,801   

Taiwan Paiho Ltd.

     44,050        27,247   

Taiwan Secom Co. Ltd.

     20,000        44,966   

Taiwan Surface Mounting Technology Co. Ltd.

     12,420        17,835   

Taiwan TEA Corp.

     38,000        20,879   

Taiwan-Sogo Shinkong Security Corp.

     42,000        50,613   

Ton Yi Industrial Corp.

     32,000        19,200   

Tong Hsing Electronic Industries Ltd.

     8,000        33,843   

Tong Yang Industry Co. Ltd.

     30,984        28,512   

Tsann Kuen Enterprise Co. Ltd.

     10,000        20,056   

TTY Biopharm Co. Ltd.

     8,720        31,451   

TXC Corp.

     24,000        37,861   

Union Bank of Taiwana

     66,280        26,140   

Unity Opto Technology Co. Ltd.a

     34,679        32,731   

UPC Technology Corp.

     30,748        17,153   

USI Corp.

     32,950        25,934   

Ve Wong Corp.

     48,000        33,169   

Visual Photonics Epitaxy Co. Ltd.

     18,900        20,514   

Wafer Works Corp.

     30,270        16,989   

Wah Lee Industrial Corp.

     28,000        39,593   

Waterland Financial Holdings Co. Ltd.

     62,021        20,697   

Win Semiconductors Corp.

     20,000        20,562   

WT Microelectronics Co. Ltd.

     20,299        24,530   

Yageo Corp.a

     122,000        37,094   

YFY Inc.

     66,000        33,816   

Yieh Phui Enterprise Co. Ltd.

     134,014        41,605   

YungShin Global Holding Corp.

     14,000        19,891   

Yungtay Engineering Co. Ltd.

     12,000        22,652   

Zinwell Corp.

     26,000        22,480   
   

 

 

  
      3,418,488   

THAILAND — 4.42%

    

Amata Corp. PCL NVDR

     62,400        53,486   

Bumrungrad Hospital PCL NVDR

     24,600        72,353   

Central Plaza Hotel PCL NVDR

     40,800        52,800   

Delta Electronics (Thailand) PCL NVDR

     43,000        54,924   

Esso (Thailand) PCL NVDR

     57,400        19,680   

G J Steel PCL NVDRa

     7,030,600        23,632   

Hana Microelectronics PCL NVDR

     54,400        46,172   

Hemaraj Land and Development PCL NVDR

     359,000        51,165   
 

 

54    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Consolidated Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS SMALL CAP INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Jasmine International PCL NVDR

     215,200      $ 48,827   

Khon Kaen Sugar Industry PCL NVDR

     51,800        26,988   

Kiatnakin Bank PCL NVDR

     33,632        69,242   

Pruksa Real Estate PCL NVDR

     46,200        46,588   

Sino-Thai Engineering & Construction PCL NVDR

     45,600        57,479   

Sri Trang Agro-Industry PCL NVDR

     46,000        25,358   

Supalai PCL NVDR

     50,200        36,617   

Thai Airways International PCL NVDRa

     44,200        36,400   

Thai Tap Water Supply PCL NVDR

     118,800        42,329   

Thai Vegetable Oil PCL NVDR

     27,400        23,025   

Thanachart Capital PCL NVDR

     31,800        48,101   

TISCO Financial Group PCL NVDR

     15,600        28,316   
   

 

 

  
      863,482   

TURKEY — 2.66%

    

Afyon Cimento Sanayi TASa

     526        20,398   

Bagfas Bandirma Gubre Fabrikalari AS

     624        18,907   

Bizim Toptan Satis Magazalari AS

     2,080        31,455   

Eczacibasi Yatirim Holding Ortakligi AS

     9,638        36,545   

Ihlas Holding ASa

     52,106        24,045   

Kardemir Karabuk Demir Celik Sanayi ve TAS Class D

     89,752        77,344   

Koza Anadolu Metal Madencilik Isletmeleri ASa

     15,972        42,713   

Net Holding ASa

     30,370        40,355   

Nortel Networks Netas Telekomunikasyon AS

     2,820        16,306   

Polyester Sanayi ASa

     37,954        24,689   

Saf Gayrimenkul Yatirim Ortakligi AS

     43,948        23,945   

Tat Konserve Sanayii ASa

     14,886        18,952   

Turkiye Sinai Kalkinma Bankasi AS

     39,464        50,903   

Ulker Biskuvi Sanayi AS

     8,018        50,596   

Yazicilar Holding AS

     4,028        43,109   
   

 

 

  
      520,262   
   

 

 

  

TOTAL COMMON STOCKS

  

  

(Cost: $18,649,734)

  

     19,187,212   

PREFERRED STOCKS — 1.39%

    

BRAZIL — 1.39%

    

Banco ABC Brasil SA

     4,075        29,886   

Banco Daycoval SA

     4,000        22,255   

Banco Industrial e Comercial SA

     4,200        12,958   
Security   Shares     Value  
   

Banco Panamericano SA

     11,811      $ 39,428   

Companhia de Ferro Ligas da
Bahia — Ferbasa

     5,000        29,639   

Contax Participacoes SA

     3,000        39,467   

GOL Linhas Aereas Inteligentes SA

     5,400        34,332   

Randon Implementos e Participacoes SA

     5,400        32,229   

Saraiva Livreiros Editores SA

     2,200        31,424   
   

 

 

  
      271,618   
   

 

 

  

TOTAL PREFERRED STOCKS

  

  

(Cost: $262,009)

  

     271,618   

RIGHTS — 0.02%

    

MALAYSIA — 0.01%

    

Mah Sing Group Bhda

     10,333        2,240   
   

 

 

  
      2,240   

POLAND — 0.01%

    

Polimex-Mostostal SAa

     65,920        769   
   

 

 

  
      769   

SOUTH KOREA — 0.00%

    

Hanjin Heavy Industries & Construction Co. Ltd.a

     268        465   
   

 

 

  
      465   
   

 

 

  

TOTAL RIGHTS

  

  

(Cost: $0)

  

     3,474   

SHORT-TERM INVESTMENTS — 0.16%

  

MONEY MARKET FUNDS — 0.16%

  

  

BlackRock Cash Funds: Treasury,
SL Agency Shares

    

0.04%c,d

     30,250        30,250   
   

 

 

  
      30,250   
   

 

 

  

TOTAL SHORT-TERM INVESTMENTS

  

  

(Cost: $30,250)

  

     30,250   
   

 

 

  
 

 

CONSOLIDATED SCHEDULES OF INVESTMENTS

      55   

Table of Contents

Consolidated Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS SMALL CAP INDEX FUND

February 28, 2013

 

          Value  
   

TOTAL INVESTMENTS
IN SECURITIES — 99.84%

  

(Cost: $18,941,993)

   $ 19,492,554   

Other Assets, Less Liabilities — 0.16%

     31,981   
   

 

 

  

NET ASSETS — 100.00%

   $ 19,524,535   
   

 

 

  

CPO  —  Certificates of Participation (Ordinary)

NVDR  —  Non-Voting Depositary Receipts

SP GDR  —  Sponsored Global Depositary Receipts

 

a 

Non-income earning security.

b 

Security valued using Level 3 inputs in accordance with management’s fair valuation policy. See Note 1.

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 consolidated financial statements.

 

 

56    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Consolidated Schedule of Investments (Unaudited)

iSHARES® MSCI EMERGING MARKETS VALUE INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

COMMON STOCKS — 91.50%

  

BRAZIL — 5.23%

  

  

Banco do Brasil SA

     3,200      $ 42,632   

Banco Santander (Brasil) SA Units

     4,000        29,093   

BM&F Bovespa SA

     9,600        65,114   

Centrais Eletricas Brasileiras SA

     400        1,406   

Companhia Siderurgica Nacional SA

     4,000        20,232   

Cosan SA Industria e Comercio

     400        9,440   

CPFL Energia SA

     1,200        12,248   

EDP Energias do Brasil SA

     1,600        9,719   

Embraer SA

     3,200        27,062   

Fibria Celulose SAa

     1,200        13,614   

JBS SAa

     800        2,776   

Light SA

     400        3,905   

Oi SA

     1,600        6,838   

PDG Realty SA Empreendimentos e Participacoes

     6,400        10,391   

Petroleo Brasileiro SA

     15,200        111,399   

Porto Seguro SA

     400        5,311   

TIM Participacoes SA

     2,000        8,750   

Tractebel Energia SA

     400        7,081   

Vale SA

     6,800        130,009   
   

 

 

  
      517,020   

CHILE — 1.93%

  

  

AES Gener SA

     9,616        6,609   

Aguas Andinas SA Series A

     13,296        10,679   

Banco de Chile

     88,720        14,728   

Banco de Chile Series Ta

     2,977        456   

Banco de Credito e Inversiones

     64        4,977   

Banco Santander (Chile) SA

     343,940        24,960   

CAP SA

     204        7,336   

CorpBanca SA

     512,808        7,541   

E.CL SA

     2,352        5,321   

Empresa Nacional de Telecomunicaciones SA

     580        12,237   

Empresas CMPC SA

     6,124        23,625   

Empresas Copec SA

     2,448        37,769   

Enersis SA

     71,112        27,167   

Vina Concha y Toro SA

     3,332        6,947   
   

 

 

  
      190,352   

CHINA — 19.17%

  

  

Agile Property Holdings Ltd.

     8,000        10,337   
Security   Shares     Value  
   

Agricultural Bank of China Ltd. Class H

     106,000      $ 54,676   

Aluminum Corp. of China Ltd. Class Ha

     24,000        10,368   

Angang Steel Co. Ltd. Class Ha

     8,000        5,385   

Anta Sports Products Ltd.

     4,000        3,786   

Bank of China Ltd. Class H

     400,000        188,785   

Bank of Communications Co. Ltd. Class H

     40,000        31,671   

Bosideng International Holdings Ltd.

     16,000        4,952   

China Agri-Industries Holdings Ltd.

     9,800        5,573   

China BlueChemical Ltd. Class H

     8,000        5,127   

China CITIC Bank Corp. Ltd. Class H

     40,000        25,687   

China Coal Energy Co. Class H

     24,000        23,799   

China Communications Construction Co. Ltd. Class H

     24,000        22,716   

China Communications Services Corp. Ltd. Class H

     8,000        5,003   

China Construction Bank Corp. Class H

     372,000        307,008   

China COSCO Holdings Co. Ltd. Class Ha

     14,000        7,510   

China Everbright Ltd.

     8,000        14,855   

China Merchants Bank Co. Ltd. Class H

     21,000        45,548   

China Merchants Holdings (International) Co. Ltd.

     8,000        27,750   

China Minsheng Banking Corp. Ltd. Class H

     28,000        38,995   

China Mobile Ltd.

     32,000        352,605   

China Petroleum & Chemical Corp. Class H

     96,000        109,186   

China Railway Group Ltd. Class H

     20,000        10,858   

China Shanshui Cement Group Ltd.

     12,000        8,588   

China Shipping Container Lines Co. Ltd. Class Ha

     24,000        7,118   

China Shipping Development Co. Ltd. Class H

     8,000        4,457   

China Southern Airlines Co. Ltd. Class H

     8,000        4,415   

China Telecom Corp. Ltd. Class H

     40,000        20,735   

Chongqing Rural Commercial Bank Co. Ltd. Class H

     12,000        6,731   

CITIC Pacific Ltd.

     8,000        12,297   

CITIC Securities Co. Ltd. Class H

     4,000        10,089   

COSCO Pacific Ltd.

     8,000        12,813   

Datang International Power Generation Co. Ltd. Class H

     16,000        6,953   

Evergrande Real Estate Group Ltd.

     24,000        11,853   

Fosun International Ltd.

     10,000        6,512   

Franshion Properties (China) Ltd.

     16,000        5,653   

GCL-Poly Energy Holdings Ltd.

     44,000        11,745   
 

 

CONSOLIDATED SCHEDULES OF INVESTMENTS

      57   

Table of Contents

Consolidated Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS VALUE INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

GOME Electrical Appliances Holdings Ltd.a

     72,000      $ 7,985   

Guangdong Investment Ltd.

     16,000        13,762   

Guangzhou Automobile Group Co. Ltd. Class H

     8,000        6,664   

Guangzhou R&F Properties Co. Ltd. Class H

     4,800        8,146   

Huabao International Holdings Ltd.

     16,000        8,934   

Industrial and Commercial Bank of China Ltd. Class H

     336,000        241,335   

Jiangsu Expressway Co. Ltd. Class H

     8,000        8,088   

Jiangxi Copper Co. Ltd. Class H

     8,000        19,167   

Kingboard Chemical Holdings Co. Ltd.

     4,000        12,199   

Lee & Man Paper Manufacturing Ltd.

     12,000        8,991   

Nine Dragons Paper (Holdings) Ltd.

     8,000        7,613   

Poly Property Group Co. Ltd.a

     12,000        8,573   

Shanghai Electric Group Co. Ltd. Class H

     16,000        6,499   

Shanghai Industrial Holdings Ltd.

     4,000        13,050   

Shougang Fushan Resources Group Ltd.

     16,000        7,056   

Shui On Land Ltd.

     14,000        6,481   

Sino-Ocean Land Holdings Ltd.

     16,000        11,059   

SOHO China Ltd.

     12,000        9,331   

Yanzhou Coal Mining Co. Ltd. Class H

     8,000        12,400   

Yuexiu Property Co. Ltd.

     32,000        11,059   

Zhejiang Expressway Co. Ltd. Class H

     8,000        6,716   

Zijin Mining Group Co. Ltd. Class H

     24,000        8,263   

Zoomlion Heavy Industry Science and Technology Co. Ltd. Class H

     7,200        9,507   
   

 

 

  
      1,895,017   

COLOMBIA — 0.71%

  

  

Ecopetrol SA SP ADR

     1,213        69,808   
   

 

 

  
      69,808   

CZECH REPUBLIC — 0.23%

  

  

CEZ AS

     488        14,697   

Telefonica O2 Czech Republic AS

     492        8,135   
   

 

 

  
      22,832   

EGYPT — 0.15%

  

  

Orascom Telecom Holding SAE SP GDRa,b

     4,764        15,054   
   

 

 

  
      15,054   

HUNGARY — 0.29%

  

  

Magyar Telekom Telecommunications PLC

     2,712        4,879   

OTP Bank PLC

     1,124        23,349   
   

 

 

  
      28,228   
Security   Shares     Value  
   

INDIA — 6.63%

  

  

ACC Ltd.

     296      $ 6,924   

Aditya Birla Nuvo Ltd.

     300        5,539   

Ambuja Cements Ltd.

     3,412        12,013   

Axis Bank Ltd.

     672        16,603   

Bajaj Auto Ltd.

     420        15,231   

Bank of Baroda

     396        5,063   

Bank of India

     872        5,097   

Bharat Heavy Electricals Ltd.

     3,156        11,669   

Bharat Petroleum Corp. Ltd.

     944        6,454   

Cairn India Ltd.

     2,436        13,341   

Canara Bank Ltd.

     696        5,317   

Coal India Ltd.

     1,752        9,976   

DLF Ltd.

     2,228        11,358   

GAIL (India) Ltd.

     2,120        12,959   

Hero Motocorp Ltd.

     216        6,620   

Hindalco Industries Ltd.

     5,340        9,707   

ICICI Bank Ltd.

     684        13,080   

Infosys Ltd.

     2,312        123,536   

Infrastructure Development Finance Co. Ltd.

     5,568        15,280   

Jaiprakash Associates Ltd.

     4,052        5,180   

Jindal Steel & Power Ltd.

     1,680        10,774   

JSW Steel Ltd.

     408        5,544   

Larsen & Toubro Ltd.

     352        8,850   

Mahindra & Mahindra Ltd.

     1,628        26,144   

NTPC Ltd.

     3,204        8,887   

Oil & Natural Gas Corp. Ltd.

     4,048        23,322   

Piramal Enterprises Ltd.

     488        5,144   

Power Finance Corp. Ltd.

     1,424        5,273   

Power Grid Corp. of India Ltd.

     6,132        11,756   

Reliance Capital Ltd.

     696        4,614   

Reliance Communications Ltd.

     3,668        4,116   

Reliance Industries Ltd.

     6,984        104,474   

Reliance Infrastructure Ltd.

     568        4,374   

Rural Electrification Corp. Ltd.

     1,484        6,225   

Sesa Goa Ltd.

     1,856        5,283   

Shriram Transport Finance Co. Ltd.

     580        7,416   

State Bank of India

     696        26,621   

Sterlite Industries (India) Ltd.

     7,212        12,454   

Tata Motors Ltd.

     3,596        19,006   

Tata Power Co. Ltd.

     5,376        9,328   

Tata Steel Ltd.

     1,564        9,817   
 

 

58    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Consolidated Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS VALUE INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Unitech Ltd.a

     11,976      $ 5,987   

Wipro Ltd.

     2,520        19,287   
   

 

 

  
      655,643   

INDONESIA — 3.04%

  

  

PT Adaro Energy Tbk

     76,000        12,348   

PT Astra Agro Lestari Tbk

     2,000        3,818   

PT Astra International Tbk

     68,000        55,942   

PT Bank Danamon Indonesia Tbk

     18,000        11,735   

PT Bank Mandiri (Persero) Tbk

     16,000        16,640   

PT Bank Negara Indonesia (Persero) Tbk

     40,000        19,041   

PT Bank Rakyat Indonesia (Persero) Tbk

     32,000        31,293   

PT Bukit Asam (Persero) Tbk

     4,000        6,250   

PT Bumi Resources Tbk

     114,000        9,674   

PT Indo Tambangraya Megah Tbk

     2,000        8,330   

PT Indofood Sukses Makmur Tbk

     26,000        19,641   

PT Perusahaan Gas Negara (Persero) Tbk

     60,000        29,803   

PT Telekomunikasi Indonesia (Persero) Tbk

     54,000        60,071   

PT United Tractors Tbk

     8,000        15,978   
   

 

 

  
      300,564   

MALAYSIA — 3.35%

  

  

Alliance Financial Group Bhd

     5,600        7,810   

AMMB Holdings Bhd

     9,200        18,814   

Berjaya Sports Toto Bhd

     3,271        4,445   

CIMB Group Holdings Bhd

     8,800        20,502   

Genting Malaysia Bhd

     16,800        20,113   

IHH Healthcare Bhda

     7,600        8,435   

IOI Corp. Bhd

     16,400        26,002   

Malayan Banking Bhd

     21,200        62,767   

Malaysia Airports Holdings Bhd

     3,200        5,664   

Maxis Communications Bhd

     7,200        14,840   

MISC Bhda

     6,000        10,231   

Parkson Holdings Bhd

     4,800        7,160   

PPB Group Bhd

     2,800        11,216   

RHB Capital Bhd

     2,800        7,112   

Sime Darby Bhd

     14,000        41,721   

Tenaga Nasional Bhd

     14,800        33,235   

UMW Holdings Bhd

     2,800        11,597   

YTL Corp. Bhd

     25,200        13,454   

YTL Power International Bhd

     12,400        6,099   
   

 

 

  
      331,217   

MEXICO — 5.64%

  

  

America Movil SAB de CV Series L

     102,400        107,145   
Security   Shares     Value  
   

Cemex SAB de CV CPOa

     56,800      $ 60,988   

Compartamos SAB de CV

     4,800        7,633   

Fomento Economico Mexicano SAB de CV BD Units

     10,400        116,315   

Grupo Aeroportuario del Pacifico SAB de CV Series B

     1,600        9,886   

Grupo Aeroportuario del Sureste SAB de CV Series B

     1,200        15,814   

Grupo Carso SAB de CV Series A1

     3,200        15,524   

Grupo Financiero Banorte SAB de CV Series O

     3,200        23,751   

Grupo Financiero Inbursa SAB de CV Series O

     2,800        7,893   

Grupo Mexico SAB de CV Series B

     20,400        80,112   

Grupo Modelo SAB de CV Series C

     3,600        32,222   

Grupo Televisa SAB de CV CPO

     7,200        38,648   

Industrias CH SAB de CV Series Ba

     1,200        9,791   

Industrias Penoles SAB de CV

     700        32,300   
   

 

 

  
      558,022   

PERU — 0.46%

  

  

Compania de Minas Buenaventura SA SP ADR

     1,036        26,542   

Southern Copper Corp.

     504        19,046   
   

 

 

  
      45,588   

PHILIPPINES — 1.12%

  

  

Aboitiz Power Corp.

     10,400        9,847   

Alliance Global Group Inc.

     22,400        11,018   

Ayala Corp.

     920        13,112   

Bank of the Philippine Islands

     3,920        10,219   

BDO Unibank Inc.a

     7,600        18,505   

Globe Telecom Inc.

     180        4,980   

Metropolitan Bank & Trust Co.

     1,840        5,159   

Philippine Long Distance Telephone Co.

     240        17,236   

San Miguel Corp.

     2,600        7,923   

SM Investments Corp.

     480        12,325   
   

 

 

  
      110,324   

POLAND — 1.41%

  

  

Asseco Poland SA

     533        7,248   

Jastrzebska Spolka Weglowa SA

     272        8,140   

KGHM Polska Miedz SA

     728        41,439   

Polska Grupa Energetyczna SA

     3,400        17,383   
 

 

CONSOLIDATED SCHEDULES OF INVESTMENTS

      59   

Table of Contents

Consolidated Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS VALUE INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Powszechna Kasa Oszczednosci Bank Polski SA

     2,133      $ 23,920   

Powszechny Zaklad Ubezpieczen SA

     190        24,114   

Tauron Polska Energia SA

     5,892        8,166   

Telekomunikacja Polska SA

     4,400        9,425   
   

 

 

  
      139,835   

RUSSIA — 5.34%

  

  

Federal Grid Co. of Unified Energy System OJSCa

     1,560,000        9,690   

Gazprom OAO

     55,880        250,890   

IDGC Holding JSCa

     100,000        6,271   

INTER RAO UES OJSCa

     6,400,000        4,517   

LUKOIL OAO

     2,752        176,526   

Novolipetsk Steel OJSC SP GDRb

     464        8,904   

Rosneft Oil Co. OJSC

     3,440        27,429   

Severstal OAO

     560        6,242   

Sistema JSFC SP GDRb

     292        5,741   

Surgutneftegas OJSC

     20,400        19,126   

VTB Bank OJSC

     6,920,000        12,636   
   

 

 

  
      527,972   

SOUTH AFRICA — 7.29%

  

  

Absa Group Ltd.

     1,460        26,441   

African Bank Investments Ltd.

     3,740        12,004   

African Rainbow Minerals Ltd.

     280        5,965   

Assore Ltd.

     20        752   

Aveng Ltd.

     2,332        8,525   

Barloworld Ltd.

     764        7,859   

Exxaro Resources Ltd.

     580        11,108   

FirstRand Ltd.

     16,424        56,469   

Gold Fields Ltd.

     3,796        32,335   

Growthpoint Properties Ltd.

     9,368        28,555   

Harmony Gold Mining Co. Ltd.

     644        4,072   

Impala Platinum Holdings Ltd.

     1,836        28,442   

Imperial Holdings Ltd.

     976        22,515   

Investec Ltd.

     1,292        9,217   

Liberty Holdings Ltd.

     736        9,556   

MMI Holdings Ltd.

     5,764        14,358   

Nedbank Group Ltd.

     1,048        22,506   

PPC Ltd.

     1,248        4,800   

Redefine Properties Ltd.

     15,576        17,064   

Remgro Ltd.

     2,344        44,410   

Reunert Ltd.

     1,104        9,782   
Security   Shares     Value  
   

RMB Holdings Ltd.

     3,804      $ 17,357   

RMI Holdings Ltd.

     3,340        8,465   

Sanlam Ltd.

     9,612        48,506   

Sappi Ltd.a

     3,028        9,618   

Sasol Ltd.

     2,840        121,501   

Standard Bank Group Ltd.

     6,372        82,726   

Steinhoff International Holdings Ltd.a

     5,844        16,980   

Tiger Brands Ltd.

     364        12,312   

Vodacom Group Ltd.

     2,012        26,718   
   

 

 

  
      720,918   

SOUTH KOREA — 14.30%

  

  

BS Financial Group Inc.

     690        9,973   

CJ Corp.

     80        11,045   

Coway Co. Ltd.a

     320        14,732   

Daelim Industrial Co. Ltd.

     148        13,217   

Daewoo Engineering & Construction Co. Ltd.a

     480        4,029   

Daewoo Securities Co. Ltd.

     880        9,955   

Daewoo Shipbuilding & Marine Engineering Co. Ltd.

     520        14,431   

DGB Financial Group Inc.

     450        6,753   

Dongbu Insurance Co. Ltd.

     240        10,517   

Doosan Corp.

     40        4,765   

Doosan Heavy Industries & Construction Co. Ltd.

     286        11,582   

GS Engineering & Construction Corp.

     192        9,717   

GS Holdings Corp.

     280        18,049   

Hana Financial Group Inc.

     930        34,698   

Hanwha Chemical Corp.

     480        8,821   

Hanwha Corp.

     240        7,735   

Hanwha Life Insurance Co. Ltd.

     960        6,419   

Hyosung Corp.

     120        6,261   

Hyundai Department Store Co. Ltd.

     72        10,040   

Hyundai Development Co.

     320        7,314   

Hyundai Engineering & Construction Co. Ltd.

     324        20,466   

Hyundai Heavy Industries Co. Ltd.

     224        44,373   

Hyundai Marine & Fire Insurance Co. Ltd.

     280        8,132   

Hyundai Merchant Marine Co. Ltd.a

     200        3,288   

Hyundai Mipo Dockyard Co. Ltd.

     64        6,974   

Hyundai Motor Co.

     812        163,476   

Hyundai Securities Co. Ltd.

     600        4,943   

Hyundai Steel Co.

     296        23,263   
 

 

60    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Consolidated Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS VALUE INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Industrial Bank of Korea

     840      $ 10,162   

Kangwon Land Inc.

     560        16,989   

KB Financial Group Inc.

     1,960        71,498   

KCC Corp.

     24        6,317   

Kia Motors Corp.

     436        22,508   

Korea Electric Power Corp.a

     1,400        42,214   

Korea Exchange Banka

     1,840        12,914   

Korea Gas Corp.

     120        7,924   

Korea Investment Holdings Co. Ltd.

     200        8,506   

KT Corp. SP ADRa

     292        4,725   

KT&G Corp.

     588        41,921   

Kumho Petro Chemical Co. Ltd.

     72        7,281   

LG Corp.

     508        30,917   

LG Display Co. Ltd.a

     1,280        36,113   

LG Electronics Inc.

     544        39,337   

Lotte Confectionery Co. Ltd.

     4        6,756   

Lotte Shopping Co. Ltd.

     56        20,118   

Mirae Asset Securities Co. Ltd.

     160        6,420   

Neo Holdings Co. Ltd.a,c

     12        —   

OCI Co. Ltd.

     72        11,537   

POSCO

     348        113,608   

S-Oil Corp.

     240        22,142   

Samsung C&T Corp.

     300        18,341   

Samsung Card Co. Ltd.

     240        8,633   

Samsung Engineering Co. Ltd.

     144        20,480   

Samsung Fire & Marine Insurance Co. Ltd.

     192        40,428   

Samsung Heavy Industries Co. Ltd.

     880        31,410   

Samsung Life Insurance Co. Ltd.

     392        37,650   

Samsung Securities Co. Ltd.

     320        16,963   

Shinhan Financial Group Co. Ltd.

     1,710        67,353   

Shinsegae Co. Ltd.

     36        7,530   

SK C&C Co. Ltd.

     108        10,273   

SK Holdings Co. Ltd.

     136        22,105   

SK Innovation Co. Ltd.

     308        50,631   

SK Networks Co. Ltd.

     680        5,018   

SK Telecom Co. Ltd.

     52        8,572   

Woori Finance Holdings Co. Ltd.

     1,880        22,831   

Woori Investment & Securities Co. Ltd.

     680        8,007   

Yuhan Corp.

     16        2,638   
   

 

 

  
      1,413,738   

TAIWAN — 10.38%

  

  

Advanced Semiconductor Engineering Inc.

     32,000        26,535   

Asia Cement Corp.

     12,000        14,966   
Security   Shares     Value  
   

ASUSTeK Computer Inc.

     4,000      $ 48,540   

AU Optronics Corp.a

     20,000        8,697   

Capital Securities Corp.

     12,000        4,551   

Catcher Technology Co. Ltd.

     4,000        18,068   

Cathay Financial Holding Co. Ltd.

     12,000        15,209   

Chang Hwa Commercial Bank Ltd.

     4,000        2,339   

Cheng Uei Precision Industry Co. Ltd.

     4,000        7,564   

Chicony Electronics Co. Ltd.

     4,000        10,476   

China Development Financial Holding Corp.a

     44,000        13,096   

China Motor Co. Ltd.

     4,000        3,735   

China Petrochemical Development Corp.

     9,050        5,598   

China Steel Corp.

     60,000        55,012   

Chinatrust Financial Holding Co. Ltd.

     38,376        22,702   

Chunghwa Telecom Co. Ltd.

     20,000        62,158   

Compal Electronics Inc.

     24,000        16,787   

E Ink Holdings Inc.

     4,000        3,067   

Eternal Chemical Co. Ltd.

     8,000        6,998   

Evergreen Marine Corp. Ltd.a

     8,000        5,110   

Far Eastern New Century Corp.

     16,000        17,744   

Farglory Land Development Co. Ltd.

     4,000        7,591   

Feng Hsin Iron & Steel Co. Ltd.

     4,000        6,971   

First Financial Holding Co. Ltd.

     36,000        22,935   

Formosa Chemicals & Fibre Corp.

     16,000        40,773   

Formosa Plastics Corp.

     20,000        50,562   

Formosa Taffeta Co. Ltd.

     8,000        7,753   

Fubon Financial Holding Co. Ltd.

     32,000        43,146   

HTC Corp.

     4,000        37,349   

Hua Nan Financial Holdings Co. Ltd.

     28,000        16,375   

Innolux Corp.a

     33,640        18,597   

Inventec Corp.

     16,000        6,364   

LCY Chemical Corp.

     4,149        5,286   

Lite-On Technology Corp.

     12,000        18,506   

Macronix International Co. Ltd.

     24,000        6,836   

Mega Financial Holding Co. Ltd.

     44,000        36,263   

Nan Ya Plastics Corp.

     24,000        46,032   

Novatek Microelectronics Corp. Ltd.

     4,000        16,719   

Pou Chen Corp.

     12,000        12,175   

Powertech Technology Inc.

     4,000        5,818   

Quanta Computer Inc.

     12,000        25,605   

Realtek Semiconductor Corp.

     4,000        9,519   

Ruentex Development Co. Ltd.

     4,000        8,751   

Shin Kong Financial Holding Co. Ltd.a

     32,000        9,697   
 

 

CONSOLIDATED SCHEDULES OF INVESTMENTS

      61   

Table of Contents

Consolidated Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS VALUE INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Siliconware Precision Industries Co. Ltd.

     16,000      $ 17,178   

SinoPac Financial Holdings Co. Ltd.

     8,000        3,640   

Synnex Technology International Corp.

     4,000        8,090   

Taishin Financial Holdings Co. Ltd.

     32,000        13,052   

Taiwan Cement Corp.

     16,000        20,521   

Taiwan Cooperative Financial Holding Co. Ltd.

     26,824        15,371   

Taiwan Mobile Co. Ltd.

     4,000        13,955   

Teco Electric and Machinery Co. Ltd.

     8,000        6,391   

Tripod Technology Corp.

     4,000        8,292   

Tung Ho Steel Enterprise Corp.

     8,000        7,820   

U-Ming Marine Transport Corp.

     4,000        6,202   

Unimicron Technology Corp.

     8,000        7,605   

United Microelectronics Corp.

     68,000        25,443   

Walsin Lihwa Corp.a

     20,000        6,876   

Wistron Corp.

     12,000        13,348   

WPG Holdings Co. Ltd.

     8,000        9,088   

Yuanta Financial Holding Co. Ltd.

     28,000        14,488   
   

 

 

  
      1,025,935   

THAILAND — 2.75%

  

  

Advanced Information Service PCL NVDR

     3,600        25,049   

Bangkok Bank PCL Foreign

     4,400        34,313   

Bangkok Bank PCL NVDR

     2,800        20,612   

Banpu PCL NVDR

     150        1,971   

Indorama Ventures PCL NVDR

     8,400        6,720   

IRPC PCL NVDR

     60,800        8,706   

Krung Thai Bank PCL NVDR

     20,400        17,486   

PTT Exploration & Production PCL NVDR

     6,000        31,865   

PTT Global Chemical PCL NVDR

     9,200        24,430   

PTT PCL NVDR

     4,400        51,765   

Siam Cement PCL NVDR

     1,200        18,716   

Siam Commercial Bank PCL NVDR

     4,000        23,933   

Thai Oil PCL NVDR

     2,800        6,588   
   

 

 

  
      272,154   

TURKEY — 2.08%

  

  

Akbank TAS

     6,276        30,496   

Asya Katilim Bankasi ASa

     3,816        4,689   

Enka Insaat ve Sanayi AS

     2,132        6,496   

Eregli Demir ve Celik Fabrikalari TAS

     5,268        6,795   

Ford Otomotiv Sanayi AS

     424        4,998   

Haci Omer Sabanci Holding AS

     4,384        23,886   

KOC Holding AS

     3,452        18,156   
Security   Shares     Value  
   

Turk Telekomunikasyon AS

     2,948      $ 12,161   

Turkcell Iletisim Hizmetleri ASa

     2,192        14,563   

Turkiye Halk Bankasi AS

     1,384        13,696   

Turkiye Is Bankasi AS Class C

     8,328        29,726   

Turkiye Petrol Rafinerileri AS

     684        19,166   

Turkiye Vakiflar Bankasi TAO Class D

     4,680        14,363   

Yapi ve Kredi Bankasi ASa

     2,248        6,349   
   

 

 

  
      205,540   
   

 

 

  

TOTAL COMMON STOCKS

  

  

(Cost: $9,159,263)

  

     9,045,761   

PREFERRED STOCKS — 7.99%

  

BRAZIL — 6.72%

  

  

AES Tiete SA

     800        8,251   

Banco do Estado do Rio Grande do Sul SA Class B

     800        7,324   

Bradespar SA

     1,200        17,632   

Centrais Eletricas Brasileiras SA Class B

     2,000        12,685   

Companhia Energetica de Minas Gerais

     2,400        28,442   

Companhia Energetica de Sao Paulo Class B

     800        7,421   

Companhia Paranaense de Energia Class B

     800        11,734   

Eletropaulo Metropolitana Eletricidade de Sao Paulo SA

     400        2,418   

Gerdau SA

     4,800        39,937   

Itausa — Investimentos Itau SA

     13,200        69,101   

Metalurgica Gerdau SA

     1,600        16,954   

Oi SA

     4,400        16,357   

Petroleo Brasileiro SA

     21,600        181,466   

Telefonica Brasil SA

     1,600        42,195   

Usinas Siderurgicas de Minas Gerais SA Class A

     2,000        9,914   

Vale SA Class A

     10,400        192,261   
   

 

 

  
      664,092   

RUSSIA — 0.45%

  

  

AK Transneft OAO

     8        17,939   

Surgutneftegas OJSC

     36,800        27,094   
   

 

 

  
      45,033   

SOUTH KOREA — 0.82%

  

  

Hyundai Motor Co. Ltd.

     112        7,489   

Hyundai Motor Co. Ltd. Series 2

     188        13,525   

LG Chem Ltd.

     52        4,605   
 

 

62    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Consolidated Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS VALUE INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Samsung Electronics Co. Ltd.

     68      $ 55,263   
   

 

 

  
      80,882   
   

 

 

  

TOTAL PREFERRED STOCKS

  

  

(Cost: $977,153)

  

     790,007   

RIGHTS — 0.00%

  

CHILE — 0.00%

  

  

Enersis SAa

     35,840        485   
   

 

 

  
      485   
   

 

 

  

TOTAL RIGHTS

  

  

(Cost: $0)

  

     485   

SHORT-TERM INVESTMENTS — 0.22%

  

MONEY MARKET FUNDS — 0.22%

  

  

BlackRock Cash Funds: Treasury,
SL Agency Shares

    

0.04%d,e

     22,059        22,059   
   

 

 

  
      22,059   
   

 

 

  

TOTAL SHORT-TERM INVESTMENTS

    

(Cost: $22,059)

  

     22,059   
   

 

 

  

TOTAL INVESTMENTS
IN SECURITIES — 99.71%

    

(Cost: $10,158,475)

       9,858,312   

Other Assets, Less Liabilities — 0.29%

       28,205   
   

 

 

  

NET ASSETS — 100.00%

     $ 9,886,517   
   

 

 

  

CPO  —  Certificates of Participation (Ordinary)

NVDR  —  Non-Voting Depositary Receipts

SP ADR  —  Sponsored American Depositary Receipts

SP GDR  —  Sponsored Global Depositary Receipts

 

a 

Non-income earning security.

b 

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

c 

Security valued using Level 3 inputs in accordance with management’s fair valuation policy. See Note 1.

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 consolidated financial statements.

 

 

CONSOLIDATED SCHEDULES OF INVESTMENTS

      63   

Table of Contents

Consolidated Statements of Assets and Liabilities (Unaudited)

iSHARES®, INC.

February 28, 2013

 

      iShares MSCI
BRIC
Index Fund		    

iShares MSCI
Emerging Markets
Asia

Index Fund

     iShares MSCI
Emerging Markets
Consumer
Discretionary
Sector Index Fund		  

ASSETS

       

Investments, at cost:

       

Unaffiliated

    $ 759,341,629      $ 170,411,043      $ 2,480,952   

Affiliated (Note 2)

      15,589,321        299,230        30,677   
  

 

 

    

 

 

    

 

 

  

Total cost of investments

    $ 774,930,950      $ 170,710,273      $ 2,511,629   
  

 

 

    

 

 

    

 

 

  

Investments in securities, at fair value (including securities on loana) (Note 1):

       

Unaffiliated

    $ 773,476,615      $ 170,559,210      $ 2,605,546   

Affiliated (Note 2)

      15,589,321        299,230        30,677   
  

 

 

    

 

 

    

 

 

  

Total fair value of investments

      789,065,936        170,858,439        2,636,223   

Foreign currencies, at valueb

      726,154        76,944        1,837   

Cash

      47,930        —        —   

Receivables:

       

Investment securities sold

      5,903,118        74,469        11,958   

Dividends and interest

      1,484,950        74,056        6,353   
  

 

 

    

 

 

    

 

 

  

Total Assets

      797,228,088        171,083,908        2,656,371   
  

 

 

    

 

 

    

 

 

  

LIABILITIES

       

Payables:

       

Investment securities purchased

      5,904,858        205,687        10,920   

Collateral for securities on loan (Note 5)

      15,354,027        —        30,405   

Foreign taxes (Note 1)

      —        75        7   

Investment advisory fees (Note 2)

      394,542        54,505        1,302   
  

 

 

    

 

 

    

 

 

  

Total Liabilities

      21,653,427        260,267        42,634   
  

 

 

    

 

 

    

 

 

  

NET ASSETS

    $ 775,574,661      $ 170,823,641      $ 2,613,737   
  

 

 

    

 

 

    

 

 

  

Net assets consist of:

       

Paid-in capital

    $ 907,081,764      $ 170,976,739      $ 3,272,295   

Distributions in excess of net investment income

      (666,704 )      (45,759 )      (2,009 ) 

Accumulated net realized loss

      (145,001,022 )      (255,402 )      (781,095 ) 

Net unrealized appreciation on investments and translation of assets and liabilities in foreign currencies

      14,160,623        148,063        124,546   
  

 

 

    

 

 

    

 

 

  

NET ASSETS

    $ 775,574,661      $ 170,823,641      $ 2,613,737   
  

 

 

    

 

 

    

 

 

  

Shares outstandingc

      19,350,000        3,000,000        50,000   
  

 

 

    

 

 

    

 

 

  

Net asset value per share

    $ 40.08      $ 56.94      $ 52.27   
  

 

 

    

 

 

    

 

 

  

 

a 

Securities on loan with values of $14,393,682, $  — and $28,812, respectively. See Note 5.

b 

Cost of foreign currencies: $721,138, $76,726 and $1,836, respectively.

c 

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

See notes to consolidated financial statements.

 

64    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Consolidated Statements of Assets and Liabilities (Unaudited) (Continued)

iSHARES®, INC.

February 28, 2013

 

     

iShares MSCI
Emerging Markets
Energy Sector
Capped

Index Fund

    

iShares MSCI
Emerging Markets
Growth

Index Fund

     iShares MSCI
Emerging Markets
Minimum Volatility
Index Fund		  

ASSETS

       

Investments, at cost:

       

Unaffiliated

    $ 2,492,939      $ 2,514,420      $ 1,342,664,802   

Affiliated (Note 2)

      676        37,952        3,483,868   
  

 

 

    

 

 

    

 

 

  

Total cost of investments

    $ 2,493,615      $ 2,552,372      $ 1,346,148,670   
  

 

 

    

 

 

    

 

 

  

Investments in securities, at fair value (including securities on loana) (Note 1):

       

Unaffiliated

    $ 2,066,482      $ 2,789,534      $ 1,420,076,360   

Affiliated (Note 2)

      676        37,952        3,483,868   
  

 

 

    

 

 

    

 

 

  

Total fair value of investments

      2,067,158        2,827,486        1,423,560,228   

Foreign currencies, at valueb

      1,647        2,760        718,796   

Receivables:

       

Investment securities sold

      —        12,948        271,007   

Due from custodian (Note 4)

      —        —        2,546,901   

Dividends and interest

      2,783        5,476        2,331,885   
  

 

 

    

 

 

    

 

 

  

Total Assets

      2,071,588        2,848,670        1,429,428,817   
  

 

 

    

 

 

    

 

 

  

LIABILITIES

       

Payables:

       

Investment securities purchased

      —        13,262        2,546,901   

Collateral for securities on loan (Note 5)

      —        34,611        3,483,868   

Due to custodian

      —        —        138,105   

Foreign taxes (Note 1)

      —        25        1,085   

Investment advisory fees (Note 2)

      1,062        1,057        233,329   
  

 

 

    

 

 

    

 

 

  

Total Liabilities

      1,062        48,955        6,403,288   
  

 

 

    

 

 

    

 

 

  

NET ASSETS

    $ 2,070,526      $ 2,799,715      $ 1,423,025,529   
  

 

 

    

 

 

    

 

 

  

Net assets consist of:

       

Paid-in capital

    $ 3,421,694      $ 3,245,142      $ 1,352,616,085   

Undistributed (distributions in excess of) net investment income

      (542 )      (2,552 )      1,127,295   

Accumulated net realized loss

      (924,148 )      (718,010 )      (8,129,643 ) 

Net unrealized appreciation (depreciation) on investments and translation of assets and liabilities in foreign currencies

      (426,478 )      275,135        77,411,792   
  

 

 

    

 

 

    

 

 

  

NET ASSETS

    $ 2,070,526      $ 2,799,715      $ 1,423,025,529   
  

 

 

    

 

 

    

 

 

  

Shares outstandingc

      50,000        50,000        23,300,000   
  

 

 

    

 

 

    

 

 

  

Net asset value per share

    $ 41.41      $ 55.99      $ 61.07   
  

 

 

    

 

 

    

 

 

  

 

a 

Securities on loan with values of $  —, $32,911 and $3,322,764, respectively. See Note 5.

b 

Cost of foreign currencies: $1,659, $2,772 and $719,090, respectively.

c 

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

See notes to consolidated financial statements.

 

CONSOLIDATED FINANCIAL STATEMENTS

      65   

Table of Contents

Consolidated Statements of Assets and Liabilities (Unaudited) (Continued)

iSHARES®, INC.

February 28, 2013

 

      iShares MSCI
Emerging Markets
Small Cap
Index Fund		    

    
iShares MSCI
Emerging Markets
Value

Index Fund

  

ASSETS

     

Investments, at cost:

     

Unaffiliated

    $ 18,911,743      $ 10,136,416   

Affiliated (Note 2)

      30,250        22,059   
  

 

 

    

 

 

  

Total cost of investments

    $ 18,941,993      $ 10,158,475   
  

 

 

    

 

 

  

Investments in securities, at fair value (Note 1):

     

Unaffiliated

    $ 19,462,304      $ 9,836,253   

Affiliated (Note 2)

      30,250        22,059   
  

 

 

    

 

 

  

Total fair value of investments

      19,492,554        9,858,312   

Foreign currencies, at valuea

      14,805        8,943   

Cash

      499        —   

Receivables:

     

Investment securities sold

      50,938        3,068   

Dividends and interest

      17,935        19,952   
  

 

 

    

 

 

  

Total Assets

      19,576,731        9,890,275   
  

 

 

    

 

 

  

LIABILITIES

     

Payables:

     

Investment securities purchased

      43,196        —   

Foreign taxes (Note 1)

      38        4   

Investment advisory fees (Note 2)

      8,962        3,754   
  

 

 

    

 

 

  

Total Liabilities

      52,196        3,758   
  

 

 

    

 

 

  

NET ASSETS

    $ 19,524,535      $ 9,886,517   
  

 

 

    

 

 

  

Net assets consist of:

     

Paid-in capital

    $ 27,537,894      $ 10,727,361   

Distributions in excess of net investment income

      (48,034 )      (2,971 ) 

Accumulated net realized loss

      (8,515,868 )      (537,644 ) 

Net unrealized appreciation (depreciation) on investments and translation of assets and liabilities in foreign currencies

      550,543        (300,229 ) 
  

 

 

    

 

 

  

NET ASSETS

    $ 19,524,535      $ 9,886,517   
  

 

 

    

 

 

  

Shares outstandingb

      400,000        200,000   
  

 

 

    

 

 

  

Net asset value per share

    $ 48.81      $ 49.43   
  

 

 

    

 

 

  

 

a 

Cost of foreign currencies: $14,779 and $8,987, respectively.

b 

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

See notes to consolidated financial statements.

 

66    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Consolidated Statements of Operations (Unaudited)

iSHARES®, INC.

Six months ended February 28, 2013

 

      iShares MSCI
BRIC
Index Fund		    

iShares MSCI
Emerging Markets
Asia

Index Fund

     iShares MSCI
Emerging Markets
Consumer
Discretionary
Sector Index Fund		  

NET INVESTMENT INCOME

       

Dividends — unaffiliateda

    $ 5,770,425      $ 144,873      $ 15,333   

Interest — affiliated (Note 2)

      229        12        1   

Securities lending income — affiliated (Note 2)

      292,134        —        276   
  

 

 

    

 

 

    

 

 

  

Total investment income

      6,062,788        144,885        15,610   
  

 

 

    

 

 

    

 

 

  

EXPENSES

       

Investment advisory fees (Note 2)

      2,509,403        163,511        8,475   

Mauritius income taxes (Note 1)

      22,026        —        —   

Commitment fees (Note 7)

      2,488        52        5   

Interest expense (Note 7)

      588        —        —   
  

 

 

    

 

 

    

 

 

  

Total expenses

      2,534,505        163,563        8,480   

Less investment advisory fees waived (Note 2)

      —        (45,687 )      —   
  

 

 

    

 

 

    

 

 

  

Net expenses

      2,534,505        117,876        8,480   
  

 

 

    

 

 

    

 

 

  

Net investment income

      3,528,283        27,009        7,130   
  

 

 

    

 

 

    

 

 

  

NET REALIZED AND UNREALIZED GAIN (LOSS)

       

Net realized gain (loss) from:

       

Investments — unaffiliated

      (7,527,804 )      (84,910 )      (5,833 ) 

In-kind redemptions — unaffiliated

      871,379        —        —   

Foreign currency transactions

      (90,965 )      (72,130 )      63   
  

 

 

    

 

 

    

 

 

  

Net realized loss

      (6,747,390 )      (157,040 )      (5,770 ) 
  

 

 

    

 

 

    

 

 

  

Net change in unrealized appreciation/depreciation on:

       

Investments

      90,987,585        1,846,862        212,445   

Translation of assets and liabilities in foreign currencies

      67,953        (88 )      (47 ) 
  

 

 

    

 

 

    

 

 

  

Net change in unrealized appreciation/depreciation

      91,055,538        1,846,774        212,398   
  

 

 

    

 

 

    

 

 

  

Net realized and unrealized gain

      84,308,148        1,689,734        206,628   
  

 

 

    

 

 

    

 

 

  

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

    $ 87,836,431      $ 1,716,743      $ 213,758   
  

 

 

    

 

 

    

 

 

  

 

a 

Net of foreign withholding tax of $458,846, $19,666 and $2,901, respectively.

See notes to consolidated financial statements.

 

CONSOLIDATED FINANCIAL STATEMENTS

      67   

Table of Contents

Consolidated Statements of Operations (Unaudited) (Continued)

iSHARES®, INC.

Period ended February 28, 2013

 

     

iShares MSCI
Emerging Markets
Energy Sector
Capped

Index Fund

    

iShares MSCI
Emerging Markets
Growth

Index Fund

     iShares MSCI
Emerging Markets
Minimum Volatility
Index Fund		  

NET INVESTMENT INCOME

       

Dividends — unaffiliateda

    $ 15,878      $ 17,358      $ 5,557,639   

Interest — unaffiliated

      —        —        639   

Interest — affiliated (Note 2)

      1        2        297   

Securities lending income — affiliated (Note 2)

      —        390        45,659   
  

 

 

    

 

 

    

 

 

  

Total investment income

      15,879        17,750        5,604,234   
  

 

 

    

 

 

    

 

 

  

EXPENSES

       

Investment advisory fees (Note 2)

      7,076        10,190        2,447,173   

Commitment fees (Note 7)

      4        8        331   
  

 

 

    

 

 

    

 

 

  

Total expenses

      7,080        10,198        2,447,504   

Less investment advisory fees waived (Note 2)

      —        (2,847 )      (1,524,852 ) 
  

 

 

    

 

 

    

 

 

  

Net expenses

      7,080        7,351        922,652   
  

 

 

    

 

 

    

 

 

  

Net investment income

      8,799        10,399        4,681,582   
  

 

 

    

 

 

    

 

 

  

NET REALIZED AND UNREALIZED GAIN (LOSS)

       

Net realized gain (loss) from:

       

Investments — unaffiliated

      (7,882 )      (265,227 )      (3,312,040 ) 

In-kind redemptions — unaffiliated

      —        (149,502 )      —   

Foreign currency transactions

      228        2,353        (117,472 ) 
  

 

 

    

 

 

    

 

 

  

Net realized loss

      (7,654 )      (412,376 )      (3,429,512 ) 
  

 

 

    

 

 

    

 

 

  

Net change in unrealized appreciation/depreciation on:

       

Investments

      70,917        743,386        69,312,355   

Translation of assets and liabilities in foreign currencies

      (22 )      176        3,037   
  

 

 

    

 

 

    

 

 

  

Net change in unrealized appreciation/depreciation

      70,895        743,562        69,315,392   
  

 

 

    

 

 

    

 

 

  

Net realized and unrealized gain

      63,241        331,186        65,885,880   
  

 

 

    

 

 

    

 

 

  

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

    $ 72,040      $ 341,585      $ 70,567,462   
  

 

 

    

 

 

    

 

 

  

 

a 

Net of foreign withholding tax of $2,368, $2,004 and $677,247, respectively.

See notes to consolidated financial statements.

 

68    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Consolidated Statements of Operations (Unaudited) (Continued)

iSHARES®, INC.

Six months ended February 28, 2013

 

          
iShares MSCI
Emerging Markets
Small Cap
Index  Fund		    

iShares MSCI
Emerging Markets
Value

Index Fund

  

NET INVESTMENT INCOME

     

Dividends — unaffiliateda

    $ 63,515      $ 72,438   

Interest — affiliated (Note 2)

      8        4   
  

 

 

    

 

 

  

Total investment income

      63,523        72,442   
  

 

 

    

 

 

  

EXPENSES

     

Investment advisory fees (Note 2)

      35,151        28,158   

Commitment fees (Note 7)

      15        12   

Interest expense (Note 7)

      9        10   
  

 

 

    

 

 

  

Total expenses

      35,175        28,180   

Less investment advisory fees waived (Note 2)

      —        (7,868 ) 
  

 

 

    

 

 

  

Net expenses

      35,175        20,312   
  

 

 

    

 

 

  

Net investment income

      28,348        52,130   
  

 

 

    

 

 

  

NET REALIZED AND UNREALIZED GAIN (LOSS)

     

Net realized gain (loss) from:

     

Investments — unaffiliated

      78,071        (268,965 ) 

In-kind redemptions — unaffiliated

      —        (68,998 ) 

Foreign currency transactions

      (3,136 )      63   
  

 

 

    

 

 

  

Net realized gain (loss)

      74,935        (337,900 ) 
  

 

 

    

 

 

  

Net change in unrealized appreciation/depreciation on:

     

Investments

      1,294,230        1,004,032   

Translation of assets and liabilities in foreign currencies

      208        (2 ) 
  

 

 

    

 

 

  

Net change in unrealized appreciation/depreciation

      1,294,438        1,004,030   
  

 

 

    

 

 

  

Net realized and unrealized gain

      1,369,373        666,130   
  

 

 

    

 

 

  

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

    $ 1,397,721      $ 718,260   
  

 

 

    

 

 

  

 

a 

Net of foreign withholding tax of $7,764 and $9,630, respectively.

See notes to consolidated financial statements.

 

CONSOLIDATED FINANCIAL STATEMENTS

      69   

Table of Contents

Consolidated Statements of Changes in Net Assets

iSHARES®, INC.

 

     iShares MSCI
BRIC
Index Fund		         
iShares MSCI
Emerging Markets
Asia
Index Fund		  
      Six months
ended
February 28, 2013
(Unaudited)		    

Year ended

August 31, 2012

     Six months
ended
February 28, 2013
(Unaudited)		    

Period from
February 8, 2012a

to

August 31, 2012

  

INCREASE (DECREASE) IN NET ASSETS

         

OPERATIONS:

         

Net investment income

    $ 3,528,283      $ 20,024,020      $ 27,009      $ 287,805   

Net realized loss

      (6,747,390 )      (66,583,732 )      (157,040 )      (102,757 ) 

Net change in unrealized appreciation/depreciation

      91,055,538        (88,532,330 )      1,846,774        (1,698,711 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets resulting from operations

      87,836,431        (135,092,042 )      1,716,743        (1,513,663 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

DISTRIBUTIONS TO SHAREHOLDERS:

         

From net investment income

      (3,563,136 )      (18,504,865 )      (193,214 )      (162,964 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions to shareholders

      (3,563,136 )      (18,504,865 )      (193,214 )      (162,964 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

CAPITAL SHARE TRANSACTIONS:

         

Proceeds from shares sold

      14,043,604        247,215,549        149,229,447        21,747,292   

Cost of shares redeemed

      (7,890,916 )      (274,663,908 )      —        —   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from capital share transactions

      6,152,688        (27,448,359 )      149,229,447        21,747,292   
  

 

 

    

 

 

    

 

 

    

 

 

  

INCREASE (DECREASE) IN NET ASSETS

      90,425,983        (181,045,266 )      150,752,976        20,070,665   

NET ASSETS

         

Beginning of period

      685,148,678        866,193,944        20,070,665        —   
  

 

 

    

 

 

    

 

 

    

 

 

  

End of period

    $ 775,574,661      $ 685,148,678      $ 170,823,641      $ 20,070,665   
  

 

 

    

 

 

    

 

 

    

 

 

  

Undistributed (distributions in excess of) net investment income included in net assets at end of period

    $ (666,704 )    $ (631,851 )    $ (45,759 )    $ 120,446   
  

 

 

    

 

 

    

 

 

    

 

 

  

SHARES ISSUED AND REDEEMED

         

Shares sold

      350,000        6,050,000        2,600,000        400,000   

Shares redeemed

      (200,000 )      (7,350,000 )      —        —   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in shares outstanding

      150,000        (1,300,000 )      2,600,000        400,000   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

a 

Commencement of operations.

See notes to consolidated financial statements.

 

70    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Consolidated Statements of Changes in Net Assets (Continued)

iSHARES®, INC.

 

     iShares MSCI
Emerging Markets
Consumer
Discretionary
Sector Index Fund		     iShares MSCI
Emerging Markets
Energy Sector
Capped
Index Fund		  
      Six months
ended
February 28, 2013
(Unaudited)		    

Period from
February 8, 2012a

to

August 31, 2012

    

Six months
ended
February 28, 2013

(Unaudited)

    

Period from
February 8, 2012a

to

August 31, 2012

  

INCREASE (DECREASE) IN NET ASSETS

         

OPERATIONS:

         

Net investment income

    $ 7,130      $ 43,745      $ 8,799      $ 176,464   

Net realized loss

      (5,770 )      (958,390 )      (7,654 )      (1,795,340 ) 

Net change in unrealized appreciation/depreciation

      212,398        (87,852 )      70,895        (497,373 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets resulting from operations

      213,758        (1,002,497 )      72,040        (2,116,249 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

DISTRIBUTIONS TO SHAREHOLDERS:

         

From net investment income

      (24,239 )      (26,130 )      (9,341 )      (168,198 ) 

Return of capital

      —        —        —        (6,779 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions to shareholders

      (24,239 )      (26,130 )      (9,341 )      (174,977 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

CAPITAL SHARE TRANSACTIONS:

         

Proceeds from shares sold

      —        10,313,556        —        10,227,402   

Cost of shares redeemed

      —        (6,860,711 )      —        (5,928,349 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase in net assets from capital share transactions

      —        3,452,845        —        4,299,053   
  

 

 

    

 

 

    

 

 

    

 

 

  

INCREASE IN NET ASSETS

      189,519        2,424,218        62,699        2,007,827   

NET ASSETS

         

Beginning of period

      2,424,218        —        2,007,827        —   
  

 

 

    

 

 

    

 

 

    

 

 

  

End of period

    $ 2,613,737      $ 2,424,218      $ 2,070,526      $ 2,007,827   
  

 

 

    

 

 

    

 

 

    

 

 

  

Undistributed (distributions in excess of) net investment income included in net assets at end of period

    $ (2,009 )    $ 15,100      $ (542 )    $ —   
  

 

 

    

 

 

    

 

 

    

 

 

  

SHARES ISSUED AND REDEEMED

         

Shares sold

      —        200,000        —        200,000   

Shares redeemed

      —        (150,000 )      —        (150,000 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase in shares outstanding

      —        50,000        —        50,000   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

a 

Commencement of operations.

See notes to consolidated financial statements.

 

CONSOLIDATED FINANCIAL STATEMENTS

      71   

Table of Contents

Consolidated Statements of Changes in Net Assets (Continued)

iSHARES®, INC.

 

         
iShares MSCI
Emerging Markets
Growth
Index Fund		     iShares MSCI
Emerging Markets
Minimum Volatility
Index Fund		  
      Six months
ended
February 28, 2013
(Unaudited)		    

Period from
February 8, 2012a

to

August 31, 2012

     Six months
ended
February 28, 2013
(Unaudited)		    

Period from
October 18, 2011a

to

August 31, 2012

  

INCREASE (DECREASE) IN NET ASSETS

         

OPERATIONS:

         

Net investment income

    $ 10,399      $ 131,338      $ 4,681,582      $ 4,314,839   

Net realized loss

      (412,376 )      (311,230 )      (3,429,512 )      (3,849,500 ) 

Net change in unrealized appreciation/depreciation

      743,562        (468,427 )      69,315,392        8,096,400   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets resulting from operations

      341,585        (648,319 )      70,567,462        8,561,739   
  

 

 

    

 

 

    

 

 

    

 

 

  

DISTRIBUTIONS TO SHAREHOLDERS:

         

From net investment income

      (53,645 )      (85,048 )      (5,305,769 )      (2,260,368 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions to shareholders

      (53,645 )      (85,048 )      (5,305,769 )      (2,260,368 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

CAPITAL SHARE TRANSACTIONS:

         

Proceeds from shares sold

      —        10,854,325        970,536,762        411,979,067   

Cost of shares redeemed

      (7,609,183 )      —        —        (31,053,364 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from capital share transactions

      (7,609,183 )      10,854,325        970,536,762        380,925,703   
  

 

 

    

 

 

    

 

 

    

 

 

  

INCREASE (DECREASE) IN NET ASSETS

      (7,321,243 )      10,120,958        1,035,798,455        387,227,074   

NET ASSETS

         

Beginning of period

      10,120,958        —        387,227,074        —   
  

 

 

    

 

 

    

 

 

    

 

 

  

End of period

    $ 2,799,715      $ 10,120,958      $ 1,423,025,529      $ 387,227,074   
  

 

 

    

 

 

    

 

 

    

 

 

  

Undistributed (distributions in excess of) net investment income included in net assets at end of period

    $ (2,552 )    $ 40,694      $ 1,127,295      $ 1,751,482   
  

 

 

    

 

 

    

 

 

    

 

 

  

SHARES ISSUED AND REDEEMED

         

Shares sold

      —        200,000        16,300,000        7,600,000   

Shares redeemed

      (150,000 )      —        —        (600,000 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in shares outstanding

      (150,000 )      200,000        16,300,000        7,000,000   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

a 

Commencement of operations.

See notes to consolidated financial statements.

 

72    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Consolidated Statements of Changes in Net Assets (Continued)

iSHARES®, INC.

 

         
iShares MSCI
Emerging Markets
Small Cap
Index Fund		     iShares MSCI
Emerging Markets
Value
Index Fund		  
      Six months
ended
February 28, 2013
(Unaudited)		    

Year ended

August 31, 2012

     Six months
ended
February 28, 2013
(Unaudited)		    

Period from
February 8, 2012a

to

August 31, 2012

  

INCREASE (DECREASE) IN NET ASSETS

         

OPERATIONS:

         

Net investment income

    $ 28,348      $ 404,898      $ 52,130      $ 199,208   

Net realized gain (loss)

      74,935        (10,768,599 )      (337,900 )      (206,720 ) 

Net change in unrealized appreciation/depreciation

      1,294,438        643,945        1,004,030        (1,304,259 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets resulting from operations

      1,397,721        (9,719,756 )      718,260        (1,311,771 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

DISTRIBUTIONS TO SHAREHOLDERS:

         

From net investment income

      (313,809 )      (500,104 )      (98,842 )      (148,491 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions to shareholders

      (313,809 )      (500,104 )      (98,842 )      (148,491 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

CAPITAL SHARE TRANSACTIONS:

         

Proceeds from shares sold

      9,752,064        9,491,705        2,481,237        10,520,963   

Cost of shares redeemed

      —        (60,026,674 )      (2,274,839 )      —   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from capital share transactions

      9,752,064        (50,534,969 )      206,398        10,520,963   
  

 

 

    

 

 

    

 

 

    

 

 

  

INCREASE (DECREASE) IN NET ASSETS

      10,835,976        (60,754,829 )      825,816        9,060,701   

NET ASSETS

         

Beginning of period

      8,688,559        69,443,388        9,060,701        —   
  

 

 

    

 

 

    

 

 

    

 

 

  

End of period

    $ 19,524,535      $ 8,688,559      $ 9,886,517      $ 9,060,701   
  

 

 

    

 

 

    

 

 

    

 

 

  

Undistributed (distributions in excess of) net investment income included in net assets at end of period

    $ (48,034 )    $ 237,427      $ (2,971 )    $ 43,741   
  

 

 

    

 

 

    

 

 

    

 

 

  

SHARES ISSUED AND REDEEMED

         

Shares sold

      200,000        200,000        50,000        200,000   

Shares redeemed

      —        (1,400,000 )      (50,000 )      —   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in shares outstanding

      200,000        (1,200,000 )      —        200,000   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

a 

Commencement of operations.

See notes to consolidated financial statements.

 

CONSOLIDATED FINANCIAL STATEMENTS

      73   

Table of Contents

Financial Highlights

iSHARES®, INC.

(For a share outstanding throughout each period)

 

     iShares MSCI BRIC Index Fund  
     

Six months
ended
Feb. 28, 2013
(Consolidated)

(Unaudited)

     Year ended
Aug. 31, 2012
(Consolidated)		     Year ended
Aug. 31, 2011
(Consolidated)		     Year ended
Aug. 31, 2010		    

Year ended

Aug. 31, 2009

    

Period from
Nov. 12, 2007a

to

Aug. 31, 2008

  

Net asset value, beginning of period

    $ 35.68      $ 42.25      $ 42.94      $ 37.57      $ 44.13      $ 56.50   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income from investment operations:

             

Net investment incomeb

      0.18        0.98        0.89        0.66        0.58        0.72   

Net realized and unrealized gain (loss)c

      4.41        (6.62 )      (0.58 )      5.35        (6.60 )      (12.93 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      4.59        (5.64 )      0.31        6.01        (6.02 )      (12.21 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Less distributions from:

             

Net investment income

      (0.19 )      (0.93 )      (1.00 )      (0.64 )      (0.54 )      (0.16 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (0.19 )      (0.93 )      (1.00 )      (0.64 )      (0.54 )      (0.16 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of period

    $ 40.08      $ 35.68      $ 42.25      $ 42.94      $ 37.57      $ 44.13   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return

      12.88 %d      (13.33 )%      0.49 %      15.95 %      (13.08 )%      (21.65 )%d 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios/Supplemental data:

             

Net assets, end of period (000s)

    $ 775,575      $ 685,149      $ 866,194      $ 946,814      $ 497,839      $ 161,092   

Ratio of expenses to average net assetse

      0.67 %      0.69 %      0.67 %      0.69 %      0.72 %      0.72 % 

Ratio of expenses to average net assets prior to waived feese,f

      n/a        n/a        0.67 %      n/a        n/a        n/a   

Ratio of net investment income to average net assetse

      0.94 %      2.55 %      1.86 %      1.52 %      1.87 %      1.74 % 

Portfolio turnover rateg

      4 %      32 %      13 %      9 %      7 %      9 % 

 

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 

Ratios for the periods ended August 31, 2010 and prior have been recalculated, as necessary, to conform with the current presentation of foreign taxes.

g 

Portfolio turnover rates exclude portfolio securities received or delivered in Creation Units but include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the six months ended February 28, 2013, the years ended August 31, 2012, August 31, 2011, August 31, 2010, August 31, 2009 and the period ended August 31, 2008 were 4%, 20%, 10%, 8%, 6% and 2%, respectively. See Note 4.

See notes to consolidated financial statements.

 

74    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Consolidated Financial Highlights

iSHARES®, INC.

(For a share outstanding throughout each period)

 

iShares MSCI Emerging Markets Asia Index Fund  
      Six months
ended
Feb. 28, 2013
(Unaudited)		    

Period from
Feb. 8, 2012a

to

Aug. 31, 2012

  

Net asset value, beginning of period

    $ 50.18      $ 54.71   
  

 

 

    

 

 

  

Income from investment operations:

     

Net investment incomeb

      0.03        0.87   

Net realized and unrealized gain (loss)c

      7.21        (4.99 ) 
  

 

 

    

 

 

  

Total from investment operations

      7.24        (4.12 ) 
  

 

 

    

 

 

  

Less distributions from:

     

Net investment income

      (0.48 )      (0.41 ) 
  

 

 

    

 

 

  

Total distributions

      (0.48 )      (0.41 ) 
  

 

 

    

 

 

  

Net asset value, end of period

    $ 56.94      $ 50.18   
  

 

 

    

 

 

  

Total return

      14.45 %d      (7.52 )%d 
  

 

 

    

 

 

  

Ratios/Supplemental data:

     

Net assets, end of period (000s)

    $ 170,824      $ 20,071   

Ratio of expenses to average net assetse

      0.49 %      0.49 % 

Ratio of expenses to average net assets prior to waived feese

      0.68 %      0.68 % 

Ratio of net investment income to average net assetse

      0.11 %      3.05 % 

Portfolio turnover ratef

      1 %      3 % 

 

a 

Commencement of operations.

b 

Based on average shares outstanding throughout each 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 in Creation Units but includes portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the six months ended February 28, 2013 and the period ended August 31, 2012 were 1% and 3%, respectively. See Note 4.

See notes to consolidated financial statements.

 

CONSOLIDATED FINANCIAL HIGHLIGHTS

      75   

Table of Contents

Consolidated Financial Highlights (Continued)

iSHARES®, INC.

(For a share outstanding throughout each period)

 

iShares MSCI Emerging Markets Consumer Discretionary Sector Index Fund  
      Six months
ended
Feb. 28, 2013
(Unaudited)		    

Period from
Feb. 8, 2012a

to

Aug. 31, 2012

  

Net asset value, beginning of period

    $ 48.48      $ 51.54   
  

 

 

    

 

 

  

Income from investment operations:

     

Net investment incomeb

      0.14        0.26   

Net realized and unrealized gain (loss)c

      4.13        (3.19 ) 
  

 

 

    

 

 

  

Total from investment operations

      4.27        (2.93 ) 
  

 

 

    

 

 

  

Less distributions from:

     

Net investment income

      (0.48 )      (0.13 ) 
  

 

 

    

 

 

  

Total distributions

      (0.48 )      (0.13 ) 
  

 

 

    

 

 

  

Net asset value, end of period

    $ 52.27      $ 48.48   
  

 

 

    

 

 

  

Total return

      8.82 %d      (5.68 )%d 
  

 

 

    

 

 

  

Ratios/Supplemental data:

     

Net assets, end of period (000s)

    $ 2,614      $ 2,424   

Ratio of expenses to average net assetse

      0.67 %      0.68 % 

Ratio of net investment income to average net assetse

      0.56 %      0.94 % 

Portfolio turnover ratef

      4 %      54 % 

 

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 in Creation Units but includes portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the six months ended February 28, 2013 and the period ended August 31, 2012 were 4% and 5%, respectively. See Note 4.

See notes to consolidated financial statements.

 

76    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Consolidated Financial Highlights (Continued)

iSHARES®, INC.

(For a share outstanding throughout each period)

 

iShares MSCI Emerging Markets Energy Sector Capped Index Fund  
      Six months
ended
Feb. 28, 2013
(Unaudited)		    

Period from
Feb. 8, 2012a

to

Aug. 31, 2012

  

Net asset value, beginning of period

    $ 40.16      $ 51.12   
  

 

 

    

 

 

  

Income from investment operations:

     

Net investment incomeb

      0.18        1.05   

Net realized and unrealized gain (loss)c

      1.26        (11.14 ) 
  

 

 

    

 

 

  

Total from investment operations

      1.44        (10.09 ) 
  

 

 

    

 

 

  

Less distributions from:

     

Net investment income

      (0.19 )      (0.84 ) 

Return of capital

      —        (0.03 ) 
  

 

 

    

 

 

  

Total distributions

      (0.19 )      (0.87 ) 
  

 

 

    

 

 

  

Net asset value, end of period

    $ 41.41      $ 40.16   
  

 

 

    

 

 

  

Total return

      3.59 %d      (19.71 )%d 
  

 

 

    

 

 

  

Ratios/Supplemental data:

     

Net assets, end of period (000s)

    $ 2,071      $ 2,008   

Ratio of expenses to average net assetse

      0.67 %      0.68 % 

Ratio of net investment income to average net assetse

      0.83 %      4.23 % 

Portfolio turnover ratef

      2 %      29 % 

 

a 

Commencement of operations.

b 

Based on average shares outstanding throughout each 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 in Creation Units but includes portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the six months ended February 28, 2013 and the period ended August 31, 2012 were 2% and 3%, respectively. See Note 4.

See notes to consolidated financial statements.

 

CONSOLIDATED FINANCIAL HIGHLIGHTS

      77   

Table of Contents

Consolidated Financial Highlights (Continued)

iSHARES®, INC.

(For a share outstanding throughout each period)

 

iShares MSCI Emerging Markets Growth Index Fund  
      Six months
ended
Feb. 28, 2013
(Unaudited)		    

Period from
Feb. 8, 2012a

to

Aug. 31, 2012

  

Net asset value, beginning of period

    $ 50.60      $ 54.24   
  

 

 

    

 

 

  

Income from investment operations:

     

Net investment incomeb

      0.19        0.66   

Net realized and unrealized gain (loss)c

      6.27        (3.87 ) 
  

 

 

    

 

 

  

Total from investment operations

      6.46        (3.21 ) 
  

 

 

    

 

 

  

Less distributions from:

     

Net investment income

      (1.07 )      (0.43 ) 
  

 

 

    

 

 

  

Total distributions

      (1.07 )      (0.43 ) 
  

 

 

    

 

 

  

Net asset value, end of period

    $ 55.99      $ 50.60   
  

 

 

    

 

 

  

Total return

      12.82 %d      (5.90 )%d 
  

 

 

    

 

 

  

Ratios/Supplemental data:

     

Net assets, end of period (000s)

    $ 2,800      $ 10,121   

Ratio of expenses to average net assetse

      0.49 %      0.49 % 

Ratio of expenses to average net assets prior to waived feese

      0.68 %      0.68 % 

Ratio of net investment income to average net assetse

      0.69 %      2.27 % 

Portfolio turnover ratef

      11 %      12 % 

 

a 

Commencement of operations.

b 

Based on average shares outstanding throughout each 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 in Creation Units but includes portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the six months ended February 28, 2013 and the period ended August 31, 2012 were 11% and 12%, respectively. See Note 4.

See notes to consolidated financial statements.

 

78    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Consolidated Financial Highlights (Continued)

iSHARES®, INC.

(For a share outstanding throughout each period)

 

iShares MSCI Emerging Markets Minimum Volatility Index Fund  
      Six months
ended
Feb. 28, 2013
(Unaudited)		    

Period from
Oct. 18, 2011a

to

Aug. 31, 2012

  

Net asset value, beginning of period

    $ 55.32      $ 49.30   
  

 

 

    

 

 

  

Income from investment operations:

     

Net investment incomeb

      0.37        1.93   

Net realized and unrealized gainc

      5.76        5.41   
  

 

 

    

 

 

  

Total from investment operations

      6.13        7.34   
  

 

 

    

 

 

  

Less distributions from:

     

Net investment income

      (0.38 )      (1.32 ) 
  

 

 

    

 

 

  

Total distributions

      (0.38 )      (1.32 ) 
  

 

 

    

 

 

  

Net asset value, end of period

    $ 61.07      $ 55.32   
  

 

 

    

 

 

  

Total return

      11.11 %d      15.16 %d 
  

 

 

    

 

 

  

Ratios/Supplemental data:

     

Net assets, end of period (000s)

    $ 1,423,026      $ 387,227   

Ratio of expenses to average net assetse

      0.25 %      0.25 % 

Ratio of expenses to average net assets prior to waived feese

      0.66 %      0.69 % 

Ratio of net investment income to average net assetse

      1.27 %      4.08 % 

Portfolio turnover ratef

      10 %      31 % 

 

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 in Creation Units but includes portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the six months ended February 28, 2013 and the period ended August 31, 2012 were 10% and 16%, respectively. See Note 4.

See notes to consolidated financial statements.

 

CONSOLIDATED FINANCIAL HIGHLIGHTS

      79   

Table of Contents

Consolidated Financial Highlights (Continued)

iSHARES®, INC.

(For a share outstanding throughout each period)

 

iShares MSCI Emerging Markets Small Cap Index Fund  
      Six months
ended
Feb. 28, 2013
(Unaudited)		    

Year ended

Aug. 31, 2012

    

Period from
Aug. 16, 2011a

to

Aug. 31, 2011

  

Net asset value, beginning of period

    $ 43.44      $ 49.60      $ 50.54   
  

 

 

    

 

 

    

 

 

  

Income from investment operations:

       

Net investment incomeb

      0.13        0.50        0.07   

Net realized and unrealized gain (loss)c

      6.81        (5.52 )      (1.01 ) 
  

 

 

    

 

 

    

 

 

  

Total from investment operations

      6.94        (5.02 )      (0.94 ) 
  

 

 

    

 

 

    

 

 

  

Less distributions from:

       

Net investment income

      (1.57 )      (1.14 )      —   
  

 

 

    

 

 

    

 

 

  

Total distributions

      (1.57 )      (1.14 )      —   
  

 

 

    

 

 

    

 

 

  

Net asset value, end of period

    $ 48.81      $ 43.44      $ 49.60   
  

 

 

    

 

 

    

 

 

  

Total return

      16.17 %d      (9.98 )%      (1.86 )%d 
  

 

 

    

 

 

    

 

 

  

Ratios/Supplemental data:

       

Net assets, end of period (000s)

    $ 19,525      $ 8,689      $ 69,443   

Ratio of expenses to average net assetse

      0.67 %      0.69 %      0.69 % 

Ratio of net investment income to average net assetse

      0.54 %      1.13 %      3.33 % 

Portfolio turnover ratef

      8 %      32 %      2 % 

 

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 in Creation Units but includes portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the six months ended February 28, 2013, the year ended August 31, 2012 and the period ended August 31, 2011 were 6%, 17% and 2%, respectively. See Note 4.

See notes to consolidated financial statements.

 

80    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Consolidated Financial Highlights (Continued)

iSHARES®, INC.

(For a share outstanding throughout each period)

 

iShares MSCI Emerging Markets Value Index Fund  
      Six months
ended
Feb. 28, 2013
(Unaudited)		    

Period from
Feb. 8, 2012a

to

Aug. 31, 2012

  

Net asset value, beginning of period

    $ 45.30      $ 52.58   
  

 

 

    

 

 

  

Income from investment operations:

     

Net investment incomeb

      0.30        1.00   

Net realized and unrealized gain (loss)c

      4.49        (7.54 ) 
  

 

 

    

 

 

  

Total from investment operations

      4.79        (6.54 ) 
  

 

 

    

 

 

  

Less distributions from:

     

Net investment income

      (0.66 )      (0.74 ) 
  

 

 

    

 

 

  

Total distributions

      (0.66 )      (0.74 ) 
  

 

 

    

 

 

  

Net asset value, end of period

    $ 49.43      $ 45.30   
  

 

 

    

 

 

  

Total return

      10.58 %d      (12.41 )%d 
  

 

 

    

 

 

  

Ratios/Supplemental data:

     

Net assets, end of period (000s)

    $ 9,887      $ 9,061   

Ratio of expenses to average net assetse

      0.49 %      0.49 % 

Ratio of expenses to average net assets prior to waived feese

      0.68 %      0.68 % 

Ratio of net investment income to average net assetse

      1.26 %      3.73 % 

Portfolio turnover ratef

      26 %      12 % 

 

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 in Creation Units but includes portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the six months ended February 28, 2013 and the period ended August 31, 2012 were 13% and 12%, respectively. See Note 4.

See notes to consolidated financial statements.

 

CONSOLIDATED FINANCIAL HIGHLIGHTS

      81   

Table of Contents

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

 

iShares MSCI Index Fund   Diversification
Classification		  

BRIC

     Diversified   

Emerging Markets Asia

     Diversified   

Emerging Markets Consumer Discretionary Sector

     Non-diversified   

Emerging Markets Energy Sector Capped

     Non-diversified   
iShares MSCI Index Fund   Diversification
Classification		  

Emerging Markets Growth

     Non-diversified   

Emerging Markets Minimum Volatility

     Non-diversified   

Emerging Markets Small Cap

     Non-diversified   

Emerging Markets Value

     Non-diversified   
 

 

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 carries out its investment strategies associated with investment in Indian securities by investing in a wholly-owned subsidiary in the Republic of Mauritius (each, a “Subsidiary”), which in turn invests in Indian securities included in the underlying index. The investment adviser of each Fund also serves as the investment adviser to each Subsidiary. Through this investment structure, each Fund expects to obtain certain benefits under a current tax treaty between Mauritius and India. The accompanying consolidated financial statements for each Fund include the accounts of its Subsidiary.

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

 

82    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Notes to Consolidated Financial Statements (Unaudited) (Continued)

iSHARES®, INC.

 

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.

SECURITY VALUATION

Each Fund’s investments are valued at fair value each day that the Fund’s listing exchange is open. 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 BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) provides oversight of the valuation of investments for the Funds. The investments of each Fund are valued pursuant to policies and procedures developed by the Global Valuation Committee and approved by the Board of Directors of the Company (the “Board”).

 

  •  

Equity investments traded on a recognized securities exchange are valued at that day’s last reported trade price or the official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price.

 

  •  

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 deemed relevant by the Global Valuation Committee, in accordance with policies approved by the Board. These factors include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other factors, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or other default rates. Valuations based on such factors are reported to the Board on a quarterly basis.

The Global Valuation Committee employs various methods for calibrating valuation approaches for investments where an active market does not exist, including regular due diligence of the Company’s pricing vendors, a regular review of key inputs and assumptions, transactional back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing or stale prices and large movements in market values, and reviews of market related activity.

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 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. 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

 

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iSHARES®, INC.

 

 

liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability (such as exchange rates, financing terms, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; 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. In accordance with the Company’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period.

The following table summarizes the value of each of the Funds’ investments according to the fair value hierarchy as of February 28, 2013. The breakdown of each Fund’s investments into major categories is disclosed in its respective consolidated schedule of investments.

 

iShares MSCI Index Fund and
Investment Type

    Investments  
   Level 1      Level 2     Level 3      Total  

BRIC

           

Assets:

           

Common Stocks

    $ 656,037,568       $ —      $ —       $ 656,037,568   

Preferred Stocks

      117,439,047         —        —         117,439,047   

Rights

      —         0 a      —         0 a 

Money Market Funds

      15,589,321         —        —         15,589,321   
  

 

 

     

 

 

    

 

 

     

 

 

  
   $ 789,065,936       $ 0 a    $ —       $ 789,065,936   
  

 

 

     

 

 

    

 

 

     

 

 

  

Emerging Markets Asia

           

Assets:

           

Common Stocks

    $ 168,926,048       $ —      $ —       $ 168,926,048   

Preferred Stocks

      1,633,161         —        —         1,633,161   

Money Market Funds

      299,230         —        —         299,230   
  

 

 

     

 

 

    

 

 

     

 

 

  
   $ 170,858,439       $ —      $ —       $ 170,858,439   
  

 

 

     

 

 

    

 

 

     

 

 

  

Emerging Markets Consumer Discretionary Sector

           

Assets:

           

Common Stocks

    $ 2,536,200       $ —      $ —       $ 2,536,200   

Preferred Stocks

      69,346         —        —         69,346   

Money Market Funds

      30,677         —        —         30,677   
  

 

 

     

 

 

    

 

 

     

 

 

  
   $ 2,636,223       $ —      $ —       $ 2,636,223   
  

 

 

     

 

 

    

 

 

     

 

 

  
                                    

 

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iShares MSCI Index Fund and
Investment Type

    Investments  
   Level 1      Level 2     Level 3     Total  

Emerging Markets Energy Sector Capped

          

Assets:

          

Common Stocks

    $ 1,875,383       $ —      $ —      $ 1,875,383   

Preferred Stocks

      191,099         —        —        191,099   

Money Market Funds

      676         —        —        676   
  

 

 

     

 

 

    

 

 

    

 

 

  
   $ 2,067,158       $ —      $ —      $ 2,067,158   
  

 

 

     

 

 

    

 

 

    

 

 

  

Emerging Markets Growth

          

Assets:

          

Common Stocks

    $ 2,587,461       $ —      $ —      $ 2,587,461   

Preferred Stocks

      201,939         —        —        201,939   

Rights

      134         0 a      —        134   

Money Market Funds

      37,952         —        —        37,952   
  

 

 

     

 

 

    

 

 

    

 

 

  
   $ 2,827,486       $ 0 a    $ —      $ 2,827,486   
  

 

 

     

 

 

    

 

 

    

 

 

  

Emerging Markets Minimum Volatility

          

Assets:

          

Common Stocks

    $ 1,368,827,989       $ —      $ —      $ 1,368,827,989   

Preferred Stocks

      51,248,371         —        —        51,248,371   

Rights

      —         0 a      —        0 a 

Money Market Funds

      3,483,868         —        —        3,483,868   
  

 

 

     

 

 

    

 

 

    

 

 

  
   $ 1,423,560,228       $ 0 a    $ —      $ 1,423,560,228   
  

 

 

     

 

 

    

 

 

    

 

 

  

Emerging Markets Small Cap

          

Assets:

          

Common Stocks

    $ 19,119,843       $ 52,959      $ 14,410      $ 19,187,212   

Preferred Stocks

      271,618         —        —        271,618   

Rights

      2,705         769        —        3,474   

Money Market Funds

      30,250         —        —        30,250   
  

 

 

     

 

 

    

 

 

    

 

 

  
   $ 19,424,416       $ 53,728      $ 14,410      $ 19,492,554   
  

 

 

     

 

 

    

 

 

    

 

 

  

Emerging Markets Value

          

Assets:

          

Common Stocks

    $ 9,045,761       $ —      $ 0 a    $ 9,045,761   

Preferred Stocks

      790,007         —        —        790,007   

Rights

      485         —        —        485   

Money Market Funds

      22,059         —        —        22,059   
  

 

 

     

 

 

    

 

 

    

 

 

  
   $ 9,858,312       $ —      $ 0 a    $ 9,858,312   
  

 

 

     

 

 

    

 

 

    

 

 

  
                                   

 

  a   

Rounds to less than $1.

 

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iSHARES®, INC.

 

The iShares MSCI Emerging Markets Consumer Discretionary Sector Index Fund had transfers from Level 2 to Level 1 during the period ended February 28, 2013 in the amount of $29,038, measured as of the beginning of the period resulting from the resumption of trading after a temporary suspension.

SECURITY TRANSACTIONS AND INCOME RECOGNITION

Security transactions are accounted for on trade date. Dividend income is recognized on the ex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities as of February 28, 2013 are reflected in dividends receivable. Non-cash dividends received in the form of stock in an elective dividend, if any, are recorded as dividend income at fair value. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. Interest income is accrued daily. Realized gains and losses on investment transactions are determined using the specific identification method.

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, stock dividends, capital gains on investments, or certain foreign currency transactions. 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 consolidated 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 stock dividends are presented as “other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable as of February 28, 2013, if any, are disclosed in the Funds’ consolidated statements of assets and liabilities.

Each Fund conducts its investment activities in India through its Subsidiary and expects to obtain benefits under the Double Tax Avoidance Agreement (“DTAA”). In order to be eligible to claim benefits under the DTAA, each Subsidiary must satisfy certain conditions, including the establishment and maintenance of valid tax residence in Mauritius. Each Subsidiary is subject to tax in Mauritius on its net income at the rate of 15%. However, a system of tax credits effectively reduces the Mauritius income tax rate to a maximum of 3%. These income taxes, if any, are paid by the Funds and are disclosed in the consolidated statements of operations. Further, each Subsidiary is not subject to tax in Mauritius on any gains from the sale of securities. Any dividends paid by a Subsidiary to its Fund will also be exempt from tax in Mauritius. The foregoing is based upon current interpretation and practice and is subject to future changes in the tax laws of India or Mauritius and in the DTAA.

 

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As a result of legislative changes enacted by the 2012 India Finance Act (“the Act”) and its general anti-avoidance rules (“GAAR”), which are effective April 1, 2013 but have been proposed to be deferred until April 1, 2016, the Subsidiaries’ ability to leverage the treaty between Mauritius and India may be adversely impacted, and therefore the Funds may be subject to taxes on capital gains and/or dividends realized on Indian securities. The Act also includes provisions that impose Indian tax on the transfer of shares of an Indian company. However, until more definitive guidance on the legislative changes is available, the impact to the Funds, if any, cannot be determined at this time.

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 December 2011, the Financial Accounting Standards Board issued guidance to enhance current disclosure requirements on offsetting of certain assets and liabilities and enable financial statement users to compare financial statements prepared under U.S. GAAP and International Financial Reporting Standards (IFRS). The new disclosures are required for investments and derivative financial instruments subject to master netting agreements or similar agreements and require an entity to disclose both gross and net information about such investments and transactions eligible for offset in the statement of assets and liabilities. In addition, the standard requires disclosure of collateral received and posted in connection with master netting agreements or similar agreements. The guidance is effective for financial statements for fiscal years beginning after January 1, 2013, and interim periods within those fiscal years. Management is evaluating the impact of this guidance on the Funds’ financial statements and disclosures.

 

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.

Each Subsidiary has entered into a separate contract with BFA under which BFA provides investment advisory services to the Subsidiary but does not receive separate compensation from the Subsidiary for providing it with such services. Each Subsidiary has also entered into separate arrangements that provide for the provision of other services to the Subsidiary (including administrative, custody, transfer agency and other services), and BFA pays the costs and expenses related to the provision of those services.

For its investment advisory services to each of the iShares MSCI BRIC, iShares MSCI Emerging Markets Consumer Discretionary Sector, iShares MSCI Emerging Markets Energy Sector Capped, iShares MSCI Emerging Markets Minimum Volatility and iShares MSCI Emerging

 

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iSHARES®, INC.

 

Markets Small Cap Index Funds, BFA is entitled to an annual investment advisory fee based on each Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:

 

Investment Advisory Fee      Aggregate Average Daily Net Assets
    0.75 %     

First $14 billion

    0.68       

Over $14 billion, up to and including $28 billion

    0.61       

Over $28 billion, up to and including $42 billion

    0.56       

Over $42 billion, up to and including $56 billion

    0.50       

Over $56 billion, up to and including $70 billion

    0.45       

Over $70 billion, up to and including $84 billion

    0.40       

Over $84 billion

BFA has contractually agreed to waive a portion of its investment advisory fees for the iShares MSCI Emerging Markets Minimum Volatility Index Fund through December 31, 2014 in order to limit total annual operating expenses to 0.25% of average daily net assets.

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 MSCI Index Fund    Investment
Advisory Fee		  

Emerging Markets Asia

      0.68 % 

Emerging Markets Growth

      0.68   

Emerging Markets Value

      0.68   

BFA has contractually agreed to waive a portion of its investment advisory fees for the iShares MSCI Emerging Markets Asia, iShares Emerging Markets Growth and iShares Emerging Markets Value Index Funds through December 31, 2014 in order to limit total annual operating expenses to 0.49% of average daily net assets.

The U.S. Securities and Exchange Commission has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”) to serve as securities lending agent for the Funds, subject to applicable conditions. BTC is an affiliate of BFA. Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, and any fees or other payments to and from borrowers of securities. Each Fund retains 65% of securities lending income and pays a fee to BTC equal to 35% of such income. The Funds benefit from a borrower default indemnity provided by BlackRock. As securities lending agent, BTC bears all operational costs directly related to securities lending as well as the cost of borrower default indemnification. BTC is also responsible for fees and expenses incurred by each Fund as a result of the investment of cash collateral received for securities on loan in a money market fund managed by BFA or an affiliate.

 

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iSHARES®, INC.

 

For the six months ended February 28, 2013, BTC earned securities lending agent fees from the Funds as follows:

 

iShares MSCI Index Fund    Securities Lending
Agent Fees		  

BRIC

    $ 157,303   

Emerging Markets Consumer Discretionary Sector

      148   

Emerging Markets Growth

      210   

Emerging Markets Minimum Volatility

      24,586   

BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the 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 consolidated statements of operations.

The PNC Financial Services Group, Inc. is the largest stockholder of BlackRock and is considered to be an affiliate of the Funds for 1940 Act purposes.

Certain directors and officers of the Company are also officers of BTC and/or BFA.

 

3. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the six months ended February 28, 2013 were as follows:

 

iShares MSCI Index Fund    Purchases      Sales  

BRIC

    $   36,234,533       $ 32,364,219   

Emerging Markets Asia

      99,207,767         817,238   

Emerging Markets Consumer Discretionary Sector

      97,330         114,677   

Emerging Markets Energy Sector Capped

      107,012         51,338   

Emerging Markets Growth

      430,962         4,406,853   

Emerging Markets Minimum Volatility

      622,925,541         75,185,098   

Emerging Markets Small Cap

      6,038,299         825,346   

Emerging Markets Value

      2,306,404         2,246,206   

 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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iSHARES®, INC.

 

In-kind transactions (see Note 4) for the six months ended February 28, 2013 were as follows:

 

iShares MSCI Index Fund    In-kind
Purchases		      In-kind
Sales		  

BRIC

    $ 7,617,762       $ 4,281,342   

Emerging Markets Asia

      50,398,716         —   

Emerging Markets Growth

      —         3,654,055   

Emerging Markets Minimum Volatility

      421,377,435         —   

Emerging Markets Small Cap

      4,235,333         —   

Emerging Markets Value

      1,233,785         1,130,070   

 

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 consolidated 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 may also 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 consolidated statements of assets and liabilities.

 

5. LOANS OF PORTFOLIO SECURITIES

Each Fund may lend its investment securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter, at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Funds and any additional required collateral is delivered to the Funds on the next business day. The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Funds benefit from a borrower default indemnity provided by BlackRock. BlackRock’s indemnity allows for full replacement of securities lent. Any securities lending cash collateral may be reinvested in certain short-term instruments either directly on behalf of a fund or through one or more joint accounts or money market funds, including those managed by BFA or its affiliates. Each Fund could suffer a loss if the value of an investment purchased with cash collateral falls below the value of the cash collateral received.

 

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As of February 28, 2013, any securities on loan were collateralized by cash. The cash collateral received was invested in money market funds managed by BFA. The value of any securities on loan as of February 28, 2013 and the value of the related collateral are disclosed in the consolidated statements of assets and liabilities. Securities lending income, as disclosed in the consolidated statements of operations, represents the income earned from the investment of the cash collateral, net of fees and other payments to and from borrowers, and less the fees paid to BTC as securities lending agent.

 

6. 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.

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

As of August 31, 2012, the Funds’ fiscal year-end, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:

 

iShares MSCI Index Fund   Non-
Expiring a		     Expiring
2017		     Expiring
2018		     Expiring
2019		     Total  

BRIC

   $ 63,224,174      $ 1,540,740      $ 11,268,086      $ 7,760,558      $ 83,793,558   

Emerging Markets Asia

     97,800        —        —        —        97,800   

Emerging Markets Consumer Discretionary Sector

     769,548        —        —        —        769,548   

Emerging Markets Energy Sector Capped

     911,455        —        —        —        911,455   

Emerging Markets Growth

     302,438        —        —        —        302,438   

Emerging Markets Minimum Volatility

     1,248,753        —        —        —        1,248,753   

Emerging Markets Small Cap

     62,813        —        —        —        62,813   

Emerging Markets Value

     188,505        —        —        —        188,505   

 

  a   

Must be utilized prior to losses subject to expiration.

The Funds may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” The Funds may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.

 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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iSHARES®, INC.

 

As of February 28, 2013, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

 

iShares MSCI Index Fund    Tax Cost      Gross
Unrealized
Appreciation		      Gross
Unrealized
Depreciation		     Net Unrealized
Appreciation
(Depreciation)		  

BRIC

    $ 788,561,846       $ 104,927,044       $ (104,422,954 )    $ 504,090   

Emerging Markets Asia

      170,714,381         4,852,562         (4,708,504 )      144,058   

Emerging Markets Consumer Discretionary Sector

      2,517,406         278,851         (160,034 )      118,817   

Emerging Markets Energy Sector Capped

      2,498,654         70,449         (501,945 )      (431,496 ) 

Emerging Markets Growth

      2,556,910         393,534         (122,958 )      270,576   

Emerging Markets Minimum Volatility

      1,349,746,008         93,758,310         (19,944,090 )      73,814,220   

Emerging Markets Small Cap

      19,088,474         1,691,100         (1,287,020 )      404,080   

Emerging Markets Value

      10,174,983         557,048         (873,719 )      (316,671 ) 

Management has reviewed the tax positions as of February 28, 2013, inclusive of the open tax return years, and has determined that no provision for income tax is required in the Funds’ consolidated financial statements.

 

7. LINE OF CREDIT

The Funds, along with certain other iShares funds, are parties to a $125 million credit agreement with State Street Bank and Trust Company, which expires October 30, 2013. The credit agreement was established to facilitate the funding of purchases of securities in India. The credit agreement has the following terms: a commitment fee of 0.08% per annum on the unused portion of the credit agreement and interest at a rate equal to the higher of (a) the one-month LIBOR plus 1.00% per annum or (b) the U.S. Federal Funds rate plus 1.00% per annum on amounts borrowed. The commitment fee is allocated to each fund participating in the credit agreement based on each fund’s pro-rata share of the aggregate average daily value of assets invested in local Indian securities.

For the six months ended February 28, 2013, the maximum amounts borrowed, the average borrowings and the average interest rates under the credit agreement were as follows:

 

iShares MSCI Index Fund    Maximum
Amount
Borrowed		      Average
Borrowings		      Average
Interest
Rates		  

BRIC

    $ 2,700,000       $ 118,333         1.22 % 

Emerging Markets Small Cap

      56,000         1,556         1.21   

Emerging Markets Value

      60,000         1,667         1.21   

 

8. SUBSEQUENT EVENTS

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

 

92    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

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 MSCI Index 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		  

BRIC

    $ 0.13596       $ —       $ 0.04962       $ 0.18558         73 %      —   %      27 %      100 % 

Emerging Markets Asia

      0.37280         —         0.11024         0.48304         77        —          23        100   

Emerging Markets Consumer Discretionary Sector

      0.37873         —         0.10605         0.48478         78        —          22        100   

Emerging Markets Energy Sector Capped

      0.16910         —         0.01772         0.18682         91        —          9        100   

Emerging Markets Growth

      0.98354         —         0.08936         1.07290         92        —          8        100   

Emerging Markets Minimum Volatility

      0.29915         —         0.08533         0.38448         78        —          22        100   

Emerging Markets Small Cap

      1.47432         —         0.09472         1.56904         94        —          6        100   

Emerging Markets Value

      0.55065         —         0.10830         0.65895         84        —          16        100   

 

SUPPLEMENTAL INFORMATION

      93   

Table of Contents

Notes:

 

 

94    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents
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 MSCI Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.

A description of the policies that the Funds use 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.

©2013 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.

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iS-SAR-810-0213

Table of Contents

FEBRUARY 28, 2013

 

 

2013 SEMI-ANNUAL REPORT (UNAUDITED)

 

     LOGO

 

iShares, Inc.

 

Ø    

iShares MSCI All Country World Minimum Volatility Index Fund  |  ACWV  |  NYSE Arca

Ø    

iShares MSCI Emerging Markets EMEA Index Fund  |  EEME  |  NASDAQ

Ø    

iShares MSCI Frontier 100 Index Fund  |  FM  |  NYSE Arca

Ø    

iShares MSCI World Index Fund  |  URTH  |  NYSE Arca

Table of Contents

Table of Contents

 

 

Fund Performance Overviews

     5   

Shareholder Expenses

     9   

Schedules of Investments

     11   

iShares MSCI All Country World Minimum Volatility Index Fund

     11   

iShares MSCI Emerging Markets EMEA Index Fund

     16   

iShares MSCI Frontier 100 Index Fund

     19   

iShares MSCI World Index Fund

     22   

Financial Statements

     37   

Financial Highlights

     43   

Notes to Financial Statements

     47   

Board Review and Approval of Investment Advisory Contract

     57   

Supplemental Information

     60   

Table of Contents

Fund Performance Overview

iSHARES® MSCI ALL COUNTRY WORLD MINIMUM VOLATILITY INDEX FUND

Performance as of February 28, 2013

 

Average Annual Total Returns   Cumulative Total Returns
Year Ended 2/28/13   Inception to 2/28/13   Inception to 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
13.12%   13.06%   12.71%   15.23%   15.38%   14.91%   21.37%   21.58%   20.95%

Total returns for the period since inception are calculated from the inception date of the Fund (10/18/11). “Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

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.

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 MSCI All Country World Minimum Volatility Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI All Country World Minimum Volatility Index (the “Index”). The Index is designed to measure the combined performance of equity securities in both emerging and developed markets that have lower absolute volatility. 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 February 28, 2013, the total return for the Fund was 7.98%, net of fees, while the total return for the Index was 7.80%.

 

PORTFOLIO ALLOCATION

As of 2/28/13

 

Sector/Investment Type    Percentage of
Net Assets

Consumer Non-Cyclical

      34.49 % 

Financial

      16.69   

Communications

      12.25   

Consumer Cyclical

      9.85   

Utilities

      8.46   

Energy

      5.92   

Industrial

      5.05   

Technology

      4.26   

Basic Materials

      2.34   

Investment Companies

      0.25   

Diversified

      0.08   

Short-Term and Other Net Assets

      0.36   
  

 

 

  

TOTAL

      100.00 % 
  

 

 

  

TEN LARGEST FUND HOLDINGS

As of 2/28/13

 

Security    Percentage of
Net Assets

Enbridge Inc. (Canada)

      1.51 % 

Johnson & Johnson

      1.49   

Automatic Data Processing Inc.

      1.48   

McDonald’s Corp.

      1.46   

TransCanada Corp. (Canada)

      1.44   

General Mills Inc.

      1.36   

Southern Co. (The)

      1.36   

Nestle SA Registered (Switzerland)

      1.22   

Novartis AG Registered (Switzerland)

      1.22   

Procter & Gamble Co. (The)

      1.22   
  

 

 

  

TOTAL

      13.76 % 
  

 

 

  
 

 

FUND PERFORMANCE OVERVIEWS

      5   

Table of Contents

Fund Performance Overview

iSHARES® MSCI EMERGING MARKETS EMEA INDEX FUND

Performance as of February 28, 2013

 

Average Annual Total Returns   Cumulative Total Returns
Year Ended 2/28/13   Inception to 2/28/13   Inception to 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
(3.65)%   (3.38)%   (3.08)%   8.21%   8.02%   8.90%   9.20%   8.99%   10.00%

Total returns for the period since inception are calculated from the inception date of the Fund (1/18/12). “Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

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 (1/19/12), 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 MSCI Emerging Markets EMEA Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI Emerging Markets EMEA Index (the “Index”). The Index is designed to measure the performance of equity securities in the emerging market countries of Europe, the Middle East and Africa. 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 February 28, 2013, the total return for the Fund was 6.10%, net of fees, while the total return for the Index was 6.43%.

 

PORTFOLIO ALLOCATION

As of 2/28/13

 

Sector    Percentage of
Net Assets

Financial

      28.02 % 

Energy

      21.67   

Communications

      15.34   

Basic Materials

      14.60   

Consumer Non-Cyclical

      7.47   

Diversified

      4.49   

Consumer Cyclical

      4.31   

Utilities

      2.58   

Industrial

      0.93   

Technology

      0.40   

Short-Term and Other Net Assets

      0.19   
  

 

 

  

TOTAL

      100.00 % 
  

 

 

  

TEN LARGEST FUND HOLDINGS

As of 2/28/13

 

Security    Percentage of
Net Assets

Gazprom OAO (Russia)

      7.04 % 

Sberbank of Russia (Russia)

      5.39   

MTN Group Ltd. (South Africa)

      4.94   

LUKOIL OAO (Russia)

      4.87   

Naspers Ltd. Class N (South Africa)

      3.77   

Sasol Ltd. (South Africa)

      3.41   

Standard Bank Group Ltd. (South Africa)

      2.27   

Magnit OJSC SP GDR (Russia)

      1.70   

Mobile TeleSystems OJSC SP ADR (Russia)

      1.61   

Turkiye Garanti Bankasi AS (Turkey)

      1.59   
  

 

 

  

TOTAL

      36.59 % 
  

 

 

  
 

 

6    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Fund Performance Overview

iSHARES® MSCI FRONTIER 100 INDEX FUND

Performance as of February 28, 2013

 

Cumulative Total Returns  
Inception to 2/28/13  
  NAV        MARKET        INDEX   
  13.23%        15.45%        13.46%   

“Cumulative Total Returns” represent the total change in value of an investment over the period indicated and are calculated from an inception date of 9/12/12.

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 (9/13/12), 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 MSCI Frontier 100 Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI Frontier Markets 100 Index (the “Index”). The Index is designed to measure equity performance of a subset of frontier market countries that meet minimum liquidity standards. 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 September 12, 2012 (inception date of the Fund) through February 28, 2013, the total return for the Fund was 13.23%, net of fees, while the total return for the Index was 13.46%.

 

PORTFOLIO ALLOCATION

As of 2/28/13

 

Sector    Percentage of
Net Assets

Financial

      54.06 % 

Communications

      13.53   

Consumer Non-Cyclical

      10.17   

Energy

      7.90   

Basic Materials

      5.13   

Industrial

      4.37   

Utilities

      1.82   

Consumer Cyclical

      1.67   

Diversified

      1.02   

Short-Term and Other Net Assets

      0.33   
  

 

 

  

TOTAL

      100.00 % 
  

 

 

  

TEN LARGEST FUND HOLDINGS

As of 2/28/13

 

Security    Percentage of
Net Assets

National Bank of Kuwait (Kuwait)

      7.41 % 

Mobile Telecommunications Co. KSC (Kuwait)

      6.91   

Emaar Properties PJSC (United Arab Emirates)

      4.30   

Kuwait Finance House (Kuwait)

      4.05   

Nigerian Breweries PLC (Nigeria)

      3.90   

KazMunaiGaz Exploration Production JSC SP GDR (Kazakhstan)

      3.32   

Qatar National Bank SAQ (Qatar)

      2.99   

Industries Qatar QSC (Qatar)

      2.86   

Qatar Telecom (Q-TEL) QSC (Qatar)

      2.55   

Masraf Al Rayan QSC (Qatar)

      2.43   
  

 

 

  

TOTAL

      40.72 % 
  

 

 

  
 

 

FUND PERFORMANCE OVERVIEWS

      7   

Table of Contents

Fund Performance Overview

iSHARES® MSCI WORLD INDEX FUND

Performance as of February 28, 2013

 

Average Annual Total Returns   Cumulative Total Returns
Year Ended 2/28/13   Inception to 2/28/13   Inception to 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
11.08%   11.66%   10.69%   17.19%   17.75%   16.80%   19.75%   20.40%   19.37%

Total returns for the period since inception are calculated from the inception date of the Fund (1/10/12). “Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

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 (1/12/12), 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 MSCI World Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI World Index (the “Index”). The Index is designed to measure the performance of equity securities in the top 85% of equity market capitalization, as calculated by the index provider, in certain developed 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 February 28, 2013, the total return for the Fund was 11.13%, net of fees, while the total return for the Index was 10.85%.

 

PORTFOLIO ALLOCATION

As of 2/28/13

 

Sector    Percentage of
Net Assets

Consumer Non-Cyclical

      21.54 % 

Financial

      20.65   

Consumer Cyclical

      10.36   

Industrial

      10.23   

Energy

      9.98   

Communications

      9.25   

Technology

      7.78   

Basic Materials

      6.25   

Utilities

      3.37   

Diversified

      0.16   

Short-Term and Other Net Assets

      0.43   
  

 

 

  

TOTAL

      100.00 % 
  

 

 

  

TEN LARGEST FUND HOLDINGS

As of 2/28/13

 

Security    Percentage of
Net Assets

Apple Inc.

      1.52 % 

Exxon Mobil Corp.

      1.51   

General Electric Co.

      0.90   

Nestle SA Registered (Switzerland)

      0.83   

Chevron Corp.

      0.83   

International Business Machines Corp.

      0.79   

Procter & Gamble Co. (The)

      0.77   

Google Inc. Class A

      0.77   

Microsoft Corp.

      0.76   

Johnson & Johnson

      0.76   
  

 

 

  

TOTAL

      9.44 % 
  

 

 

  
 

 

8    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

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 September 1, 2012 (or commencement of operations, as applicable) to February 28, 2013.

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 MSCI Index Fund    Beginning
Account  Value
(9/1/12) a		      Ending
Account Value
(2/28/13)		      Annualized
Expense Ratio		     Expenses Paid
During Period b		  

All Country World Minimum Volatility

           

Actual

    $ 1,000.00       $ 1,079.80         0.20 %    $ 1.03   

Hypothetical (5% return before expenses)

      1,000.00         1,023.80         0.20        1.00   

Emerging Markets EMEA

           

Actual

      1,000.00         1,061.00         0.49        2.50   

Hypothetical (5% return before expenses)

      1,000.00         1,022.40         0.49        2.46   

Frontier 100

           

Actual

      1,000.00         1,132.30         0.79        3.90   

Hypothetical (5% return before expenses)

      1,000.00         1,020.90         0.79        3.96   

 

SHAREHOLDER EXPENSES

      9   

Table of Contents

Shareholder Expenses (Unaudited) (Continued)

iSHARES®, INC.

 

iShares MSCI Index Fund    Beginning
Account  Value
(9/1/12) a		      Ending
Account Value
(2/28/13)		      Annualized
Expense Ratio		     Expenses Paid
During Period b		  

World

           

Actual

    $ 1,000.00       $ 1,111.30         0.24 %    $ 1.26   

Hypothetical (5% return before expenses)

      1,000.00         1,023.60         0.24        1.20   

 

a 

The beginning of the period (commencement of operations) is September 12, 2012 for the iShares MSCI Frontier 100 Index Fund.

 
b 

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 (169 days for the iShares MSCI Frontier 100 Index Fund and 181 days for all other Funds) and divided by the number of days in the year (365 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 (181 days) and divided by the number of days in the year (365 days).

 

 

10    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited)

iSHARES® MSCI ALL COUNTRY WORLD MINIMUM VOLATILITY INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

COMMON STOCKS — 99.07%

  

BELGIUM — 0.13%

  

  

Belgacom SA

     36,994      $ 1,035,476   
   

 

 

  
      1,035,476   

CANADA — 7.84%

    

Bank of Montreal

     44,540        2,781,882   

Barrick Gold Corp.

     13,755        418,383   

BCE Inc.

     127,070        5,746,300   

Bell Aliant Inc.

     34,977        906,364   

Canadian Imperial Bank of Commerce

     11,790        953,476   

Enbridge Inc.

     261,738        11,706,350   

Franco-Nevada Corp.

     26,855        1,302,979   

Goldcorp Inc.

     26,986        883,565   

Intact Financial Corp.

     66,155        4,215,567   

National Bank of Canada

     19,388        1,481,563   

Pembina Pipeline Corp.

     93,141        2,621,955   

RioCan Real Estate Investment Trust

     44,540        1,206,594   

Rogers Communications Inc. Class B

     20,829        992,368   

Shaw Communications Inc. Class B

     198,858        4,771,973   

Thomson Reuters Corp.

     189,033        5,793,911   

Tim Hortons Inc.

     80,696        3,911,368   

TransCanada Corp.

     238,682        11,153,430   
   

 

 

  
      60,848,028   

CHILE — 0.33%

    

Banco de Credito e Inversiones

     15,210        1,182,718   

Empresa Nacional de Electricidad SA

     220,866        375,395   

Empresa Nacional de Telecomunicaciones SA

     24,628        519,591   

LATAM Airlines Group SA

     21,484        512,337   
   

 

 

  
      2,590,041   

CHINA — 2.69%

    

Beijing Enterprises Holdings Ltd.

     262,000        2,003,469   

China Construction Bank Corp. Class H

     3,930,000        3,243,389   

China Minsheng Banking Corp. Ltd. Class H

     327,500        456,102   

China Mobile Ltd.

     589,500        6,495,648   

China Resources Gas Group Ltd.

     524,000        1,214,920   

China Resources Power Holdings Co. Ltd.

     786,000        2,123,407   

Inner Mongolia Yitai Coal Co. Ltd. Class B

     301,300        1,732,174   
Security   Shares     Value  
   

Jiangsu Expressway Co. Ltd. Class H

     628,000      $ 634,895   

Kunlun Energy Co. Ltd.

     262,000        543,268   

SOHO China Ltd.a

     458,500        356,519   

Tingyi (Cayman Islands) Holding Corp.a

     524,000        1,375,062   

Zhejiang Expressway Co. Ltd. Class H

     786,000        659,827   
   

 

 

  
      20,838,680   

COLOMBIA — 0.20%

    

Corporacion Financiera Colombiana SA

     25,676        502,010   

Grupo Argos SA

     80,958        1,013,606   
   

 

 

  
      1,515,616   

CZECH REPUBLIC — 0.10%

  

Telefonica O2 Czech Republic AS

     45,457        751,596   
   

 

 

  
      751,596   

DENMARK — 0.17%

    

Novo Nordisk A/S Class B

     4,716        824,866   

TrygVesta A/S

     6,288        507,516   
   

 

 

  
      1,332,382   

EGYPT — 0.11%

    

Commercial International Bank (Egypt) SAE

     168,466        848,535   
   

 

 

  
      848,535   

FINLAND — 0.06%

    

Orion OYJ Class B

     14,672        435,419   
   

 

 

  
      435,419   

FRANCE — 0.12%

    

Eutelsat Communications SA

     15,458        557,668   

Societe BIC SA

     3,275        382,815   
   

 

 

  
      940,483   

HONG KONG — 3.44%

    

Cheung Kong Infrastructure Holdings Ltd.

     183,000        1,199,965   

CLP Holdings Ltd.

     812,000        6,989,303   

Hang Seng Bank Ltd.

     393,000        6,355,017   

Hopewell Holdings Ltd.

     131,000        572,661   

Link REIT (The)

     1,113,500        5,951,704   

MTR Corp. Ltd.

     746,500        3,080,395   

Power Assets Holdings Ltd.

     288,000        2,568,096   
   

 

 

  
      26,717,141   

INDONESIA — 1.16%

    

PT Bank Central Asia Tbk

     2,620,000        2,982,356   

PT Telekomunikasi Indonesia (Persero) Tbk

     4,257,500        4,736,185   
 

 

SCHEDULES OF INVESTMENTS

      11   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI ALL COUNTRY WORLD MINIMUM VOLATILITY INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

PT Unilever Indonesia Tbk

     524,000      $ 1,239,034   
   

 

 

  
      8,957,575   

IRELAND — 0.09%

    

Ryanair Holdings PLC SP ADR

     18,864        729,282   
   

 

 

  
      729,282   

ISRAEL — 0.44%

    

Bezeq The Israel Telecommunication Corp. Ltd.

     286,628        367,378   

NICE Systems Ltd.b

     30,916        1,108,855   

Teva Pharmaceutical Industries Ltd.

     52,400        1,962,663   
   

 

 

  
      3,438,896   

JAPAN — 12.02%

    

ABC-MART Inc.

     13,100        459,338   

All Nippon Airways Co. Ltd.

     131,000        269,781   

Bank of Kyoto Ltd. (The)

     131,000        1,150,119   

Benesse Holdings Inc.

     31,400        1,308,617   

Chiba Bank Ltd. (The)

     131,000        839,161   

Chugai Pharmaceutical Co. Ltd.

     52,400        1,138,760   

Chugoku Bank Ltd. (The)

     131,000        1,929,645   

Eisai Co. Ltd.

     83,800        3,751,290   

FamilyMart Co. Ltd.

     26,200        1,108,942   

Gunma Bank Ltd. (The)

     183,000        999,697   

Hachijuni Bank Ltd. (The)

     183,000        983,828   

Itochu Techno-Solutions Corp.

     13,100        575,060   

Iyo Bank Ltd. (The)

     131,000        1,121,721   

Japan Real Estate Investment Corp.

     131        1,444,039   

Jupiter Telecommunications Co. Ltd.

     262        349,296   

Kamigumi Co. Ltd.

     131,000        1,140,180   

Keikyu Corp.

     183,000        1,624,507   

Keio Corp.

     131,000        1,052,146   

Kintetsu Corp.a

     262,000        1,107,522   

Lawson Inc.

     26,200        1,956,623   

McDonald’s Holdings Co. (Japan) Ltd.

     31,400        790,275   

Miraca Holdings Inc.

     31,400        1,523,033   

Mitsubishi Tanabe Pharma Corp.

     104,800        1,493,735   

Nippon Building Fund Inc.

     131        1,472,437   

Nissin Foods Holdings Co. Ltd.

     26,200        1,046,467   

Nitori Holdings Co. Ltd.

     15,700        1,175,883   

NTT DOCOMO Inc.

     5,502        8,551,775   

Odakyu Electric Railway Co. Ltd.

     262,000        2,777,325   

Ono Pharmaceutical Co. Ltd.

     39,300        2,095,773   

Oracle Corp. Japan

     18,300        773,575   
Security   Shares     Value  
   

Oriental Land Co. Ltd.

     26,200      $ 3,887,687   

Osaka Gas Co. Ltd.

     524,000        2,044,656   

Otsuka Holdings Co. Ltd.

     170,300        5,478,543   

Rakuten Inc.

     91,700        796,138   

Rinnai Corp.

     13,100        944,234   

Sankyo Co. Ltd.

     18,300        774,566   

Santen Pharmaceutical Co. Ltd.

     31,400        1,412,421   

Secom Co. Ltd.

     78,600        4,055,235   

Seven Bank Ltd.

     209,600        554,329   

Shimamura Co. Ltd.

     13,100        1,344,646   

Shizuoka Bank Ltd. (The)

     262,000        2,615,456   

Suzuken Co. Ltd.

     31,400        1,097,605   

Taisho Pharmaceutical Holdings Co. Ltd.

     13,100        907,316   

Takeda Pharmaceutical Co. Ltd.

     170,300        8,850,948   

Toho Co. Ltd.

     26,200        506,052   

Tokyo Gas Co. Ltd.

     131,000        636,115   

TonenGeneral Sekiyu K.K.

     131,000        1,306,308   

Tsumura & Co.

     13,100        460,758   

Unicharm Corp.

     31,400        1,827,639   

West Japan Railway Co.

     91,700        4,070,144   

Yamato Holdings Co. Ltd.

     183,400        3,083,172   

Yamazaki Baking Co. Ltd.

     44,000        558,465   
   

 

 

  
      93,222,983   

MALAYSIA — 1.32%

    

Berjaya Sports Toto Bhd

     400,933        544,869   

Hong Leong Bank Bhd

     96,900        457,144   

IHH Healthcare Bhdb

     1,034,900        1,148,587   

Malayan Banking Bhd

     510,900        1,512,614   

Maxis Communications Bhd

     1,179,000        2,430,102   

Petronas Dagangan Bhd

     65,500        498,482   

Public Bank Bhd Foreign

     550,200        2,866,274   

Telekom Malaysia Bhd

     458,500        789,264   
   

 

 

  
      10,247,336   

NEW ZEALAND — 0.14%

  

Auckland International Airport Ltd.

     444,876        1,043,836   
   

 

 

  
      1,043,836   

PERU — 0.17%

    

Compania de Minas Buenaventura SA SP ADR

     50,959        1,305,570   
   

 

 

  
      1,305,570   
 

 

12    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI ALL COUNTRY WORLD MINIMUM VOLATILITY INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

PHILIPPINES — 0.41%

    

Bank of the Philippine Islands

     344,530      $ 898,185   

Philippine Long Distance Telephone Co.

     23,580        1,693,399   

San Miguel Corp.

     194,730        593,385   
   

 

 

  
      3,184,969   

SINGAPORE — 1.84%

    

ComfortDelGro Corp. Ltd.

     1,179,000        1,828,867   

Oversea-Chinese Banking Corp. Ltd.

     393,000        3,206,867   

Singapore Airlines Ltd.

     262,000        2,305,134   

Singapore Press Holdings Ltd.

     10,000        33,771   

Singapore Telecommunications Ltd.

     2,096,000        5,825,280   

StarHub Ltd.a

     314,000        1,062,945   
   

 

 

  
      14,262,864   

SWITZERLAND — 5.73%

    

Banque Cantonale Vaudoise Registered

     655        374,807   

Givaudan SA Registeredb

     3,537        4,245,007   

Lindt & Spruengli AG Registeredb

     52        2,228,611   

Nestle SA Registered

     134,668        9,452,158   

Novartis AG Registered

     138,467        9,444,304   

Roche Holding AG Genusschein

     13,493        3,104,315   

Schindler Holding AG Participation Certificates

     4,061        631,866   

Schindler Holding AG Registered

     6,288        950,073   

SGS SA Registered

     2,489        6,353,191   

Swiss Prime Site AG Registeredb

     28,404        2,290,400   

Swisscom AG Registered

     11,790        5,387,115   
   

 

 

  
      44,461,847   

TAIWAN — 3.99%

    

Advantech Co. Ltd.

     131,000        582,880   

Chang Hwa Commercial Bank Ltd.

     691,400        404,355   

China Steel Corp.

     4,716,050        4,323,953   

Chunghwa Telecom Co. Ltd.

     1,965,000        6,106,989   

Far EasTone Telecommunications Co. Ltd.

     838,000        1,940,593   

First Financial Holding Co. Ltd.

     1,372,400        874,332   

Formosa Petrochemical Corp.

     131,000        364,300   

Fubon Financial Holding Co. Ltd.

     393,031        529,932   

Inventec Corp.

     1,048,830        417,177   

Lite-On Technology Corp.

     1,048,000        1,616,166   

MStar Semiconductor Inc.

     40,000        300,676   

Synnex Technology International Corp.

     655,000        1,324,727   
Security   Shares     Value  
   

Taiwan Cooperative Financial Holding Co. Ltd.

     2,489,018      $ 1,426,299   

Taiwan Mobile Co. Ltd.

     838,000        2,923,601   

Taiwan Semiconductor Manufacturing Co. Ltd.

     2,227,000        7,844,589   
   

 

 

  
      30,980,569   

THAILAND — 0.97%

  

Advanced Information Service PCL NVDR

     268,000        1,864,739   

Bangkok Bank PCL Foreign

     91,700        715,106   

Bangkok Bank PCL NVDR

     78,600        578,602   

Bangkok Dusit Medical Services PCL NVDR

     167,700        839,909   

Charoen Pokphand Foods PCL NVDR

     445,400        486,571   

CP All PCL NVDR

     1,904,700        3,025,112   
   

 

 

  
      7,510,039   

UNITED KINGDOM — 4.28%

    

AstraZeneca PLC

     52,138        2,370,726   

Babcock International Group PLC

     104,669        1,704,808   

British Sky Broadcasting Group PLC

     198,465        2,562,217   

Capita PLC

     246,411        3,080,217   

Compass Group PLC

     282,960        3,438,302   

Experian PLC

     30,968        514,266   

GlaxoSmithKline PLC

     122,747        2,712,875   

Pearson PLC

     160,868        2,820,391   

Reckitt Benckiser Group PLC

     33,929        2,281,048   

Reed Elsevier PLC

     312,435        3,362,509   

Serco Group PLC

     257,546        2,230,325   

Shire PLC

     48,653        1,525,061   

SSE PLC

     73,150        1,605,611   

Unilever PLC

     10,742        428,517   

Vodafone Group PLC

     646,354        1,624,266   

Wm Morrison Supermarkets PLC

     247,590        975,653   
   

 

 

  
      33,236,792   

UNITED STATES — 51.32%

    

3M Co.

     3,144        326,976   

Abbott Laboratories

     159,296        5,382,612   

AbbVie Inc.

     159,296        5,881,208   

Activision Blizzard Inc.

     229,040        3,275,272   

Advance Auto Parts Inc.

     22,532        1,720,093   

Airgas Inc.

     4,323        433,510   

Alleghany Corp.b

     6,419        2,425,548   
 

 

SCHEDULES OF INVESTMENTS

      13   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI ALL COUNTRY WORLD MINIMUM VOLATILITY INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Allergan Inc.

     3,851      $ 417,525   

Altria Group Inc.

     126,677        4,250,013   

American Capital Agency Corp.

     176,588        5,601,371   

AmerisourceBergen Corp.

     94,713        4,470,454   

Amgen Inc.

     95,630        8,741,538   

Annaly Capital Management Inc.

     496,752        7,694,688   

Aon PLC

     129,035        7,882,748   

Arch Capital Group Ltd.a,b

     70,740        3,474,749   

AT&T Inc.

     99,298        3,565,791   

Automatic Data Processing Inc.

     187,592        11,510,645   

AutoZone Inc.a,b

     13,231        5,029,765   

Becton, Dickinson and Co.

     49,649        4,372,091   

Bristol-Myers Squibb Co.

     78,862        2,915,528   

C.H. Robinson Worldwide Inc.

     9,563        545,282   

C.R. Bard Inc.

     40,007        3,954,692   

Campbell Soup Co.

     96,416        3,968,483   

Chevron Corp.

     4,716        552,479   

Chubb Corp. (The)

     46,374        3,896,807   

Church & Dwight Co. Inc.

     61,570        3,814,877   

Clorox Co. (The)

     49,780        4,182,018   

Coca-Cola Co. (The)

     153,139        5,929,542   

Colgate-Palmolive Co.

     64,583        7,390,233   

Consolidated Edison Inc.

     147,244        8,687,396   

Costco Wholesale Corp.

     6,943        703,256   

DIRECTVb

     21,353        1,028,574   

Dollar General Corp.b

     39,169        1,815,091   

Dollar Tree Inc.b

     60,391        2,728,767   

Dominion Resources Inc.

     89,604        5,017,824   

Duke Energy Corp.

     91,438        6,332,082   

Ecolab Inc.

     57,902        4,432,398   

Eli Lilly and Co.

     169,907        9,287,117   

Everest Re Group Ltd.

     24,628        3,068,895   

Exxon Mobil Corp.

     87,901        7,871,535   

Family Dollar Stores Inc.

     44,723        2,573,809   

Federal Realty Investment Trust

     29,737        3,158,367   

First Republic Bank

     45,064        1,642,583   

Forest Laboratories Inc.b

     35,763        1,316,078   

General Mills Inc.

     228,857        10,584,636   

Genuine Parts Co.

     10,218        725,785   

H.J. Heinz Co.

     6,157        445,952   

Health Care REIT Inc.a

     66,024        4,234,779   

Hershey Co. (The)

     40,741        3,395,355   

Hormel Foods Corp.

     72,574        2,714,993   
Security   Shares     Value  
   

International Business Machines Corp.

     24,811      $ 4,982,793   

Intuit Inc.

     53,238        3,432,786   

J.M. Smucker Co. (The)

     52,531        5,006,204   

Johnson & Johnson

     152,091        11,575,646   

Kellogg Co.

     116,459        7,045,770   

Kimberly-Clark Corp.

     78,993        7,447,460   

Kinder Morgan Inc.

     91,438        3,389,607   

Kinder Morgan Management LLCa,b

     50,436        4,177,614   

Kroger Co. (The)

     29,265        854,831   

Laboratory Corp. of America Holdingsb

     38,121        3,377,521   

Marsh & McLennan Companies Inc.

     130,083        4,831,283   

McCormick & Co. Inc. NVS

     54,627        3,674,758   

McDonald’s Corp.

     118,031        11,319,173   

Microsoft Corp.

     227,337        6,319,969   

Motorola Solutions Inc.

     5,240        325,980   

Newmont Mining Corp.

     7,205        290,289   

NextEra Energy Inc.

     9,484        681,615   

O’Reilly Automotive Inc.b

     47,422        4,824,714   

PartnerRe Ltd.a

     32,095        2,864,158   

Paychex Inc.

     163,226        5,402,781   

People’s United Financial Inc.

     164,326        2,152,671   

PepsiCo Inc.

     79,386        6,015,077   

PG&E Corp.

     156,938        6,691,836   

Procter & Gamble Co. (The)

     123,795        9,430,703   

Raytheon Co.

     9,956        543,299   

Realty Income Corp.

     83,971        3,833,276   

RenaissanceRe Holdings Ltd.

     26,200        2,290,928   

Republic Services Inc.

     65,762        2,067,557   

Ross Stores Inc.

     76,556        4,437,186   

SAIC Inc.

     137,812        1,628,938   

Sherwin-Williams Co. (The)

     3,406        550,376   

Southern Co. (The)

     234,621        10,560,291   

Stericycle Inc.a,b

     37,335        3,581,173   

Synopsys Inc.b

     74,277        2,601,923   

Target Corp.

     61,177        3,851,704   

TJX Companies Inc. (The)

     71,133        3,198,851   

Total System Services Inc.

     80,958        1,923,562   

Travelers Companies Inc. (The)

     42,444        3,413,346   

Verisk Analytics Inc. Class Ab

     66,417        3,886,723   

Verizon Communications Inc.

     132,703        6,174,671   

W.R. Berkley Corp.

     55,413        2,299,640   

Wal-Mart Stores Inc.

     88,163        6,240,177   

Waste Management Inc.

     125,498        4,683,585   
 

 

14    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI ALL COUNTRY WORLD MINIMUM VOLATILITY INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Wisconsin Energy Corp.

     106,765      $ 4,409,395   

Xcel Energy Inc.

     128,773        3,695,785   

Xilinx Inc.

     8,384        312,472   

Yum! Brands Inc.

     7,991        523,251   
   

 

 

  
      398,195,158   
   

 

 

  

TOTAL COMMON STOCKS

  

  

(Cost: $703,688,829)

  

     768,631,113   

INVESTMENT COMPANIES — 0.25%

  

INDIA — 0.25%

  

  

iShares S&P India Nifty 50 Index Fundc

     81,116        1,937,861   
   

 

 

  
      1,937,861   
   

 

 

  

TOTAL INVESTMENT COMPANIES

  

  

(Cost: $1,734,918)

  

     1,937,861   

PREFERRED STOCKS — 0.32%

  

COLOMBIA — 0.32%

  

  

Banco Davivienda SA

     47,160        673,092   

Grupo Argos SA

     45,195        565,350   

Grupo Aval Acciones y Valores SA

     799,886        568,616   

Grupo de Inversiones Suramericana SA

     30,916        677,037   
   

 

 

  
      2,484,095   
   

 

 

  

TOTAL PREFERRED STOCKS

  

  

(Cost: $2,261,497)

  

     2,484,095   

SHORT-TERM INVESTMENTS — 2.06%

  

MONEY MARKET FUNDS — 2.06%

  

  

BlackRock Cash Funds: Institutional,
SL Agency Shares

    

0.21%c,d,e

     13,967,650        13,967,650   

BlackRock Cash Funds: Prime,
SL Agency Shares

    

0.18%c,d,e

     1,011,304        1,011,304   

BlackRock Cash Funds: Treasury,
SL Agency Shares

    

0.04%c,d

     1,012,628        1,012,628   
   

 

 

  
      15,991,582   
   

 

 

  

TOTAL SHORT-TERM INVESTMENTS

  

  

(Cost: $15,991,582)

  

     15,991,582   
   

 

 

  
          Value  
   

TOTAL INVESTMENTS
IN SECURITIES — 101.70%

  

(Cost: $723,676,826)

   $ 789,044,651   

Other Assets, Less Liabilities — (1.70)%

     (13,191,182 ) 
   

 

 

  

NET ASSETS — 100.00%

   $ 775,853,469   
   

 

 

  

NVDR  —  Non-Voting Depositary Receipts

NVS  —  Non-Voting Shares

SP ADR  —  Sponsored American Depositary Receipts

 

a 

All or a portion of this security represents a security on loan. See Note 5.

b 

Non-income earning security.

c 

Affiliated issuer. See Note 2.

d 

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

e 

All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

 

 

SCHEDULES OF INVESTMENTS

      15   

Table of Contents

Schedule of Investments (Unaudited)

iSHARES® MSCI EMERGING MARKETS EMEA INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

COMMON STOCKS — 98.13%

  

CZECH REPUBLIC — 1.50%

  

  

CEZ AS

     1,302      $ 39,213   

Komercni Banka AS

     136        27,669   

Telefonica O2 Czech Republic AS

     868        14,352   
   

 

 

  
      81,234   

EGYPT — 1.53%

    

Commercial International Bank (Egypt) SAE SP GDR

     6,600        33,000   

Orascom Telecom Holding SAE SP GDRa,b

     15,710        49,643   
   

 

 

  
      82,643   

HUNGARY — 1.31%

    

Magyar Telekom Telecommunications PLC

     4,496        8,088   

MOL Hungarian Oil and Gas PLC

     337        25,902   

OTP Bank PLC

     1,770        36,769   
   

 

 

  
      70,759   

POLAND — 8.54%

    

Asseco Poland SA

     617        8,390   

Bank Handlowy w Warszawie SA

     270        7,646   

Bank Millennium SAa

     4,723        7,112   

Bank Pekao SA

     992        50,123   

BRE Bank SAa

     117        12,439   

Cyfrowy Polsat SAa

     1,934        9,991   

ENEA SA

     937        4,575   

Eurocash SA

     461        7,696   

Grupa Lotos SAa

     385        5,066   

Jastrzebska Spolka Weglowa SA

     306        9,157   

Kernel Holding SAa

     431        8,838   

KGHM Polska Miedz SA

     1,116        63,524   

Polska Grupa Energetyczna SA

     5,577        28,513   

Polski Koncern Naftowy Orlen SAa

     2,644        44,684   

Polskie Gornictwo Naftowe i Gazownictwo SAa

     15,430        27,802   

Powszechna Kasa Oszczednosci Bank Polski SA

     6,675        74,855   

Powszechny Zaklad Ubezpieczen SA

     444        56,350   

Synthos SA

     4,053        7,060   

Tauron Polska Energia SA

     7,375        10,222   

Telekomunikacja Polska SA

     5,920        12,681   

Zaklady Azotowe w Tarnowie-Moscicach SAa

     250        4,442   
   

 

 

  
      461,166   
Security   Shares     Value  
   

RUSSIA — 32.88%

    

Federal Grid Co. of Unified Energy System OJSCa

     2,680,000      $ 16,646   

Gazprom OAO

     84,650        380,062   

IDGC Holding JSCa

     155,000        9,720   

INTER RAO UES OJSCa

     10,700,000        7,552   

LSR Group OJSC SP GDRb

     1,874        8,890   

LUKOIL OAO

     4,105        263,314   

Magnit OJSC SP GDRb

     2,159        91,585   

Mechel OAO SP ADR

     1,367        7,505   

MegaFon OAO SP GDRa

     733        21,074   

MMC Norilsk Nickel OJSC

     372        65,690   

Mobile TeleSystems OJSC SP ADR

     4,211        87,126   

NovaTek OAO SP GDRb

     729        84,564   

Novolipetsk Steel OJSC SP GDRb

     606        11,629   

Rosneft Oil Co. OJSC

     10,270        81,888   

Rostelecom OJSC

     9,630        38,617   

RusHydro OJSC

     1,012,000        22,765   

Sberbank of Russia

     85,150        290,960   

Severstal OAO

     1,440        16,050   

Sistema JSFC SP GDRb

     975        19,168   

Surgutneftegas OJSC

     57,800        54,191   

Tatneft OAO, Class S

     11,620        76,055   

TMK OAO SP GDRb

     445        6,635   

Uralkali OJSC

     10,150        75,455   

VTB Bank OJSC

     21,320,000        38,930   
   

 

 

  
      1,776,071   

SOUTH AFRICA — 40.97%

    

Absa Group Ltd.

     2,265        41,020   

African Bank Investments Ltd.

     5,542        17,788   

African Rainbow Minerals Ltd.

     906        19,302   

Anglo American Platinum Ltd.

     549        26,004   

AngloGold Ashanti Ltd.

     3,016        74,087   

ArcelorMittal South Africa Ltd.a

     1,529        4,933   

Aspen Pharmacare Holdings Ltd.a

     2,429        44,174   

Assore Ltd.

     278        10,457   

Aveng Ltd.

     3,119        11,402   

Barloworld Ltd.

     1,619        16,654   

Bidvest Group Ltd.

     2,355        62,498   

Discovery Holdings Ltd.

     2,328        19,485   

Exxaro Resources Ltd.

     1,020        19,536   

FirstRand Ltd.

     24,367        83,779   
 

 

16    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS EMEA INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Foschini Group Ltd. (The)

     1,732      $ 20,664   

Gold Fields Ltd.

     5,924        50,461   

Growthpoint Properties Ltd.

     13,794        42,046   

Harmony Gold Mining Co. Ltd.

     3,239        20,479   

Impala Platinum Holdings Ltd.

     4,355        67,465   

Imperial Holdings Ltd.

     1,457        33,611   

Investec Ltd.

     1,914        13,654   

Kumba Iron Ore Ltd.

     644        40,791   

Liberty Holdings Ltd.

     941        12,218   

Life Healthcare Group Holdings Ltd.

     7,634        28,715   

Massmart Holdings Ltd.

     803        16,691   

MMI Holdings Ltd.

     8,126        20,241   

Mr. Price Group Ltd.

     1,940        25,039   

MTN Group Ltd.

     13,631        266,750   

Naspers Ltd. Class N

     3,133        203,503   

Nedbank Group Ltd.

     1,504        32,299   

Netcare Ltd.

     7,036        15,683   

Northam Platinum Ltd.

     2,185        9,541   

Pick n Pay Stores Ltd.

     2,066        10,308   

PPC Ltd.

     3,811        14,658   

Redefine Properties Ltd.

     23,438        25,677   

Remgro Ltd.

     3,567        67,582   

Reunert Ltd.

     1,514        13,414   

RMB Holdings Ltd.

     5,811        26,514   

RMI Holdings Ltd.

     5,263        13,338   

Sanlam Ltd.

     14,175        71,533   

Sappi Ltd.a

     4,068        12,921   

Sasol Ltd.

     4,306        184,219   

Shoprite Holdings Ltd.

     3,501        67,073   

SPAR Group Ltd. (The)

     1,465        17,829   

Standard Bank Group Ltd.

     9,451        122,700   

Steinhoff International Holdings Ltd.a

     9,456        27,474   

Tiger Brands Ltd.

     1,325        44,818   

Truworths International Ltd.

     3,659        37,945   

Vodacom Group Ltd.

     2,944        39,094   

Woolworths Holdings Ltd.

     6,209        44,730   
   

 

 

  
      2,212,797   

TURKEY — 11.40%

    

Akbank TAS

     14,689        71,377   

Anadolu Efes Biracilik ve Malt Sanayii AS

     1,546        23,207   

Arcelik AS

     2,046        12,968   

Asya Katilim Bankasi ASa

     5,163        6,344   

BIM Birlesik Magazalar AS

     859        40,714   
Security   Shares     Value  
   

Coca-Cola Icecek AS

     567      $ 13,397   

Emlak Konut Gayrimenkul Yatirim Ortakligi AS

     5,202        8,445   

Enka Insaat ve Sanayi AS

     3,097        9,436   

Eregli Demir ve Celik Fabrikalari TAS

     6,943        8,955   

Ford Otomotiv Sanayi AS

     648        7,638   

Haci Omer Sabanci Holding AS

     6,527        35,563   

KOC Holding AS

     5,065        26,639   

Koza Altin Isletmeleri AS

     331        7,840   

TAV Havalimanlari Holding AS

     1,293        7,872   

Tofas Turk Otomobil Fabrikasi AS

     1,119        6,937   

Turk Hava Yollari AOa

     3,920        16,258   

Turk Telekomunikasyon AS

     4,107        16,943   

Turkcell Iletisim Hizmetleri ASa

     6,233        41,411   

Turkiye Garanti Bankasi AS

     17,981        85,974   

Turkiye Halk Bankasi AS

     5,128        50,748   

Turkiye Is Bankasi AS Class C

     12,863        45,912   

Turkiye Petrol Rafinerileri AS

     1,004        28,133   

Turkiye Sise ve Cam Fabrikalari AS

     3,616        5,911   

Turkiye Vakiflar Bankasi TAO Class D

     6,024        18,487   

Yapi ve Kredi Bankasi ASa

     6,662        18,816   
   

 

 

  
      615,925   
   

 

 

  

TOTAL COMMON STOCKS

  

  

(Cost: $5,494,601)

  

     5,300,595   

PREFERRED STOCKS — 1.68%

  

RUSSIA — 1.68%

  

  

AK Transneft OAO

     13        29,152   

Sberbank of Russia

     8,500        20,648   

Surgutneftegas OJSC

     55,500        40,862   
   

 

 

  
      90,662   
   

 

 

  

TOTAL PREFERRED STOCKS

  

  

(Cost: $84,342)

  

     90,662   

SHORT-TERM INVESTMENTS — 0.11%

  

MONEY MARKET FUNDS — 0.11%

  

  

BlackRock Cash Funds: Treasury,
SL Agency Shares

    

0.04%c,d

     5,763        5,763   
   

 

 

  
      5,763   
   

 

 

  

TOTAL SHORT-TERM INVESTMENTS

  

  

(Cost: $5,763)

  

     5,763   
   

 

 

  
 

 

SCHEDULES OF INVESTMENTS

      17   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI EMERGING MARKETS EMEA INDEX FUND

February 28, 2013

 

          Value  
   

TOTAL INVESTMENTS
IN SECURITIES — 99.92%

  

(Cost: $5,584,706)

   $ 5,397,020   

Other Assets, Less Liabilities — 0.08%

     4,260   
   

 

 

  

NET ASSETS — 100.00%

   $ 5,401,280   
   

 

 

  

SP ADR  —  Sponsored American Depositary Receipts

SP GDR  —  Sponsored Global Depositary Receipts

 

a 

Non-income earning security.

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.

 

 

18    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited)

iSHARES® MSCI FRONTIER 100 INDEX FUND

February 28, 2013

 

Security    Shares      Value  
     

COMMON STOCKS — 99.63%

  

ARGENTINA — 3.16%

  

   

Banco Macro SA SP ADRa

      19,832       $ 288,159   

BBVA Banco Frances SA SP ADRa

      24,642         99,553   

Petrobras Argentina SA Class B SP ADR

      36,334         168,590   

Telecom Argentina SA SP ADR

      48,137         591,604   

YPF SA SP ADR

      41,625         524,475   
     

 

 

  
        1,672,381   

BANGLADESH — 2.06%

      

Bangladesh Export Import Co. Ltd.a

      192,400         151,773   

GrameenPhone Ltd.

      74,200         138,425   

Islami Bank Bangladesh Ltd.

      301,700         154,963   

National Bank Ltd.a

      617,900         159,079   

Prime Bank Ltd.

      268,250         110,226   

Square Pharmaceuticals Ltd.

      111,000         247,198   

Titas Gas Transmission & Distribution Co. Ltd.

      150,400         128,560   
     

 

 

  
        1,090,224   

ESTONIA — 0.41%

      

Tallink Group ASa

      182,764         214,804   
     

 

 

  
        214,804   

JORDAN — 0.94%

      

Arab Bank PLC

      29,340         320,246   

Jordan Phosphate Mines Co.

      5,961         110,348   

Jordan Telecommunications Co. PSC

      9,176         68,671   
     

 

 

  
        499,265   

KAZAKHSTAN — 3.92%

      

Halyk Savings Bank of Kazakhstan JSC SP GDRa,b

      44,400         316,350   

KazMunaiGaz Exploration Production JSC SP GDRb

      90,058         1,755,230   
     

 

 

  
        2,071,580   

KENYA — 3.74%

      

Co-operative Bank of Kenya Ltd. (The)

      776,504         124,006   

East African Breweries Ltd.

      196,503         643,599   

Equity Bank Ltd.

      1,043,400         342,347   

Kenya Commercial Bank Ltd.

      1,177,360         523,043   

Safaricom Ltd.

      5,180,000         345,935   
     

 

 

  
        1,978,930   
Security    Shares      Value  
     

KUWAIT — 27.98%

      

Agility Public Warehousing Co. KSC

      370,000       $ 731,380   

Boubyan Bank KSCa

      185,000         430,992   

Boubyan Petrochemicals Co.

      185,000         391,811   

Burgan Bank SAK

      370,000         731,380   

Gulf Bank KSCa

      555,000         803,212   

Kuwait Finance House

      740,000         2,141,899   

Kuwait International Bank

      370,000         385,281   

Kuwait Projects Co. Holding KSC

      370,000         542,005   

Mabanee Co. SAKC

      185,000         783,621   

Mobile Telecommunications Co. KSC

      1,295,000         3,656,901   

National Bank of Kuwait

      1,110,000         3,918,108   

National Industries Group Holdinga

      370,000         282,104   
     

 

 

  
        14,798,694   

LEBANON — 1.05%

      

Solidere Class A

      28,820         366,014   

Solidere SP GDRb

      15,316         189,153   
     

 

 

  
        555,167   

MAURITIUS — 0.97%

      

Mauritius Commercial Bank

      68,487         410,476   

State Bank of Mauritius Ltd.

      30,877         110,348   
     

 

 

  
        512,058   

NIGERIA — 13.63%

      

Access Bank PLC

      6,361,373         469,430   

Afriland Properties PLCa

      7,291         101   

FBN Holdings PLC

      8,582,192         1,071,759   

Guaranty Trust Bank PLC

      7,554,857         1,172,182   

Guinness Nigeria PLC

      364,538         634,579   

Lafarge Cement WAPCO Nigeria PLC

      492,063         209,487   

Nigerian Breweries PLC

      1,980,445         2,061,012   

United Bank for Africa PLCa

      8,902,977         452,589   

Zenith Bank PLC

      8,703,812         1,139,099   
     

 

 

  
        7,210,238   

OMAN — 3.66%

      

Ahli Bank SAOGa

      216,487         101,777   

BankMuscat SAOG

      433,788         701,948   

HSBC Bank Oman SAOG

      409,395         206,292   

National Bank of Oman SAOG

      114,071         85,924   

Oman Cement Co. SAOG

      90,391         152,608   
 

 

SCHEDULES OF INVESTMENTS

      19   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI FRONTIER 100 INDEX FUND

February 28, 2013

 

Security    Shares      Value  
     

Oman Telecommunications Co. SAOG

      99,197       $ 370,250   

Omani Qatari Telecommunications Co. SAOG

      153,192         210,888   

Raysut Cement Co.

      27,983         106,626   
     

 

 

  
        1,936,313   

PAKISTAN — 4.81%

      

Engro Corp. Ltd.

      129,500         159,624   

Fauji Fertilizer Co. Ltd.

      314,550         363,047   

Hub Power Co. Ltd. (The)

      222,030         119,084   

MCB Bank Ltd.

      218,390         523,722   

National Bank of Pakistan

      222,110         123,290   

Oil & Gas Development Co. Ltd.

      344,100         730,895   

Pakistan Oilfields Ltd.

      37,000         180,551   

Pakistan Petroleum Ltd.

      57,375         108,712   

Pakistan State Oil Co. Ltd.

      37,800         93,571   

United Bank Ltd.

      148,080         140,274   
     

 

 

  
        2,542,770   

QATAR — 16.32%

      

Al Khalij Commercial Bank

      45,103         214,434   

Barwa Real Estate Co.

      52,431         384,495   

Doha Bank QSC

      20,661         254,226   

Industries Qatar QSC

      32,395         1,514,359   

Masraf Al Rayan QSC

      194,324         1,287,345   

Qatar Electricity & Water Co. QSC

      13,727         500,685   

Qatar Gas Transport Co. Ltd.

      75,295         343,293   

Qatar Islamic Bank SAQ

      26,418         518,797   

Qatar National Bank SAQ

      44,400         1,579,225   

Qatar Navigation QSC

      14,726         262,495   

Qatar Telecom (Q-TEL) QSC

      42,587         1,350,984   

Vodafone Qatar QSCa

      182,965         422,123   
     

 

 

  
        8,632,461   

ROMANIA — 1.47%

      

Banca Transilvaniaa

      714,297         312,795   

BRD-Groupe Societe Generale SA

      77,425         216,085   

OMV Petrom SA

      1,850,000         248,587   
     

 

 

  
        777,467   

SRI LANKA — 1.59%

      

Commercial Bank of Ceylon PLC

      219,143         187,272   

John Keells Holdings PLC

      357,198         655,307   
     

 

 

  
        842,579   

UNITED ARAB EMIRATES — 11.49%

      

Arabtec Holding Co.

      413,401         300,512   

Dana Gas PJSCa

      1,713,655         237,943   
Security    Shares      Value  
     

DP World Ltd.

      87,135       $ 1,137,112   

Dubai Financial Market PJSCa

      929,773         306,296   

Dubai Islamic Bank PJSC

      328,950         197,925   

Emaar Properties PJSC

      1,577,643         2,276,479   

Emirates NBD PJSC

      146,055         153,491   

First Gulf Bank PJSC

      178,969         660,231   

National Bank of Abu Dhabi PJSC

      261,960         805,921   
     

 

 

  
        6,075,910   

VIETNAM — 2.43%

      

Bank for Foreign Trade of Vietnam JSC

      101,750         156,837   

Bao Viet Holdings

      26,020         66,432   

HAGL JSCa

      115,340         153,567   

Masan Group Corp.a

      43,680         233,460   

Petrovietnam Fertilizer & Chemicals JSC

      85,680         173,772   

Saigon Thuong Tin Commercial JSBa

      76,260         78,607   

Vietnam Bank for Industry and Trade JSCa

      94,500         90,193   

Vingroup JSCa

      104,768         334,978   
     

 

 

  
        1,287,846   
     

 

 

  

TOTAL COMMON STOCKS

  

   

(Cost: $50,867,245)

  

      52,698,687   

RIGHTS — 0.04%

  

QATAR — 0.04%

  

   

Doha Bank QSCa

      4,821         19,597   
     

 

 

  
        19,597   
     

 

 

  

TOTAL RIGHTS

  

   

(Cost: $0)

  

      19,597   

SHORT-TERM INVESTMENTS — 3.44%

  

MONEY MARKET FUNDS — 3.44%

  

   

BlackRock Cash Funds: Treasury,
SL Agency Shares

      

0.04%c,d

      1,820,771         1,820,771   
     

 

 

  
        1,820,771   
     

 

 

  

TOTAL SHORT-TERM INVESTMENTS

  

   

(Cost: $1,820,771)

  

      1,820,771   
     

 

 

  
 

 

20    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI FRONTIER 100 INDEX FUND

February 28, 2013

 

            Value  

TOTAL INVESTMENTS
IN SECURITIES — 103.11%

   

(Cost: $52,688,016)

    $ 54,539,055   

Other Assets, Less Liabilities — (3.11)%

      (1,643,208 ) 
     

 

 

  

NET ASSETS — 100.00%

    $ 52,895,847   
     

 

 

  

SP ADR  —  Sponsored American Depositary Receipts

SP GDR  —  Sponsored Global Depositary Receipts

 

a 

Non-income earning security.

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.

 

 

 

SCHEDULES OF INVESTMENTS

      21   

Table of Contents

Schedule of Investments (Unaudited)

iSHARES® MSCI WORLD INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

COMMON STOCKS — 99.35%

  

AUSTRALIA — 4.02%

  

  

AGL Energy Ltd.

     140      $ 2,284   

ALS Ltd.

     100        1,199   

Amcor Ltd.

     316        2,976   

AMP Ltd.

     601        3,372   

APA Group

     245        1,543   

Asciano Ltd.

     298        1,702   

ASX Ltd.

     55        2,052   

Aurizon Holdings Ltd.

     487        2,009   

Australia and New Zealand Banking Group Ltd.

     547        16,083   

Bendigo and Adelaide Bank Ltd.

     122        1,240   

BHP Billiton Ltd.

     696        26,413   

Brambles Ltd.

     373        3,341   

CFS Retail Property Trust Group

     822        1,759   

Coca-Cola Amatil Ltd.

     154        2,284   

Cochlear Ltd.

     15        1,088   

Commonwealth Bank of Australia

     325        22,382   

Computershare Ltd.

     124        1,292   

Crown Ltd.

     143        1,758   

CSL Ltd.

     112        6,880   

Dexus Property Group

     1,881        2,099   

Echo Entertainment Group Ltd.

     255        982   

Fortescue Metals Group Ltd.

     327        1,580   

Goodman Group

     510        2,428   

GPT Group

     598        2,406   

Iluka Resources Ltd.

     116        1,249   

Incitec Pivot Ltd.

     442        1,462   

Insurance Australia Group Ltd.

     487        2,837   

James Hardie Industries SE

     154        1,545   

Lend Lease Group

     211        2,301   

Macquarie Group Ltd.

     76        2,935   

Mirvac Group

     1,356        2,277   

National Australia Bank Ltd.

     462        14,284   

Newcrest Mining Ltd.

     171        3,967   

Orica Ltd.

     95        2,656   

Origin Energy Ltd.

     250        3,115   

OZ Minerals Ltd.

     32        208   

QBE Insurance Group Ltd.

     258        3,534   

Ramsay Health Care Ltd.

     41        1,348   

Rio Tinto Ltd.

     98        6,727   

Santos Ltd.

     219        3,007   
Security   Shares     Value  
   

Sonic Healthcare Ltd.

     106      $ 1,457   

SP AusNet

     234        285   

Stockland Corp. Ltd.

     642        2,471   

Suncorp Group Ltd.

     271        3,127   

Tatts Group Ltd.

     494        1,613   

Telstra Corp. Ltd.

     869        4,083   

Toll Holdings Ltd.

     81        512   

Transurban Group

     348        2,195   

Wesfarmers Ltd.

     228        9,577   

Westfield Group

     529        6,066   

Westfield Retail Trust

     921        2,998   

Westpac Banking Corp.

     632        19,909   

Woodside Petroleum Ltd.

     143        5,490   

Woolworths Ltd.

     277        9,905   

WorleyParsons Ltd.

     52        1,418   
   

 

 

  
      235,710   

AUSTRIA — 0.14%

  

Andritz AG

     29        2,048   

Erste Group Bank AGa

     55        1,774   

IMMOFINANZ AGa

     508        2,128   

OMV AG

     47        2,049   

Telekom Austria AG

     32        212   
   

 

 

  
      8,211   

BELGIUM — 0.46%

    

Ageas

     43        1,467   

Anheuser-Busch InBev NV

     172        16,136   

Belgacom SA

     24        672   

Colruyt SA

     21        1,036   

Groupe Bruxelles Lambert SA

     13        1,040   

KBC Groep NV

     51        1,894   

Solvay SA

     14        2,003   

UCB SA

     21        1,215   

Umicore SA

     27        1,352   
   

 

 

  
      26,815   

CANADA — 4.68%

    

Agnico-Eagle Mines Ltd.

     40        1,609   

Agrium Inc.

     35        3,636   

Alimentation Couche-Tard Inc. Class B

     35        1,819   

ARC Resources Ltd.

     71        1,796   

Athabasca Oil Corp.a

     100        986   

Bank of Montreal

     128        7,995   

Bank of Nova Scotia

     232        13,863   
 

 

22    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI WORLD INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Barrick Gold Corp.

     217      $ 6,600   

Baytex Energy Corp.

     33        1,383   

BCE Inc.

     43        1,945   

Bombardier Inc. Class B

     398        1,607   

Brookfield Asset Management Inc. Class A

     139        5,288   

Brookfield Office Properties Inc.

     101        1,690   

Cameco Corp.

     96        2,054   

Canadian Imperial Bank of Commerce

     79        6,389   

Canadian National Railway Co.

     94        9,570   

Canadian Natural Resources Ltd.

     240        7,358   

Canadian Oil Sands Ltd.

     114        2,341   

Canadian Pacific Railway Ltd.

     40        4,881   

Canadian Tire Corp. Ltd. Class A NVS

     19        1,272   

Canadian Utilities Ltd. Class A

     16        1,210   

Catamaran Corp.a

     49        2,649   

Cenovus Energy Inc.

     168        5,456   

CGI Group Inc. Class Aa

     60        1,590   

CI Financial Corp.

     54        1,418   

Crescent Point Energy Corp.

     79        3,016   

Eldorado Gold Corp.

     160        1,584   

Enbridge Inc.

     163        7,290   

Encana Corp.

     171        3,085   

Finning International Inc.

     53        1,347   

First Quantum Minerals Ltd.

     115        2,149   

Fortis Inc.

     53        1,735   

Franco-Nevada Corp.

     36        1,747   

George Weston Ltd.

     17        1,233   

Gildan Activewear Inc.

     29        1,070   

Goldcorp Inc.

     177        5,795   

Great-West Lifeco Inc.

     47        1,253   

Husky Energy Inc.

     78        2,406   

IAMGOLD Corp.

     101        683   

IGM Financial Inc.

     29        1,286   

Imperial Oil Ltd.

     66        2,753   

Intact Financial Corp.

     28        1,784   

Kinross Gold Corp.

     256        1,955   

Loblaw Companies Ltd.

     34        1,371   

Magna International Inc. Class A

     43        2,294   

Manulife Financial Corp.

     385        5,730   

MEG Energy Corp.a

     36        1,166   

Metro Inc. Class A

     32        2,010   

National Bank of Canada

     32        2,445   

New Gold Inc.a

     123        1,101   
Security   Shares     Value  
   

Nexen Inc.

     117      $ 3,220   

Onex Corp.

     28        1,266   

Open Text Corp.a

     15        828   

Osisko Mining Corp.a

     79        459   

Pacific Rubiales Energy Corp.

     73        1,793   

Pembina Pipeline Corp.

     71        1,999   

Pengrowth Energy Corp.

     187        799   

Penn West Petroleum Ltd.

     116        1,131   

Potash Corp. of Saskatchewan Inc.

     187        7,527   

Power Corp. of Canada

     68        1,823   

Power Financial Corp.

     36        1,045   

Research In Motion Ltd.a,b

     107        1,455   

RioCan Real Estate Investment Trust

     67        1,815   

Rogers Communications Inc. Class B

     80        3,811   

Royal Bank of Canada

     295        18,371   

Saputo Inc.

     36        1,787   

Shaw Communications Inc. Class B

     91        2,184   

Shoppers Drug Mart Corp.

     58        2,426   

Silver Wheaton Corp.

     87        2,767   

SNC-Lavalin Group Inc.

     41        1,859   

Sun Life Financial Inc.

     125        3,503   

Suncor Energy Inc.

     335        10,183   

Talisman Energy Inc.

     229        2,885   

Teck Resources Ltd. Class B

     131        4,069   

TELUS Corp.

     32        2,207   

Thomson Reuters Corp.

     76        2,329   

Tim Hortons Inc.

     44        2,133   

Toronto-Dominion Bank (The)

     185        15,269   

Tourmaline Oil Corp.a

     37        1,323   

TransAlta Corp.

     75        1,123   

TransCanada Corp.

     148        6,916   

Turquoise Hill Resources Ltd.a

     139        891   

Valeant Pharmaceuticals International Inc.a

     63        4,262   

Vermilion Energy Inc.

     30        1,557   

Yamana Gold Inc.

     179        2,643   
   

 

 

  
      274,351   

DENMARK — 0.55%

    

Carlsberg A/S Class B

     30        3,088   

Coloplast A/S Class B

     55        2,873   

Danske Bank A/Sa

     173        3,225   

DSV A/S

     84        2,066   

Novo Nordisk A/S Class B

     92        16,092   
 

 

SCHEDULES OF INVESTMENTS

      23   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI WORLD INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Novozymes A/S Class B

     90      $ 3,142   

William Demant Holding A/Sa

     19        1,521   
   

 

 

  
      32,007   

FINLAND — 0.33%

    

Elisa OYJ

     39        823   

Fortum OYJ

     97        1,853   

Kone OYJ Class B

     39        3,161   

Metso OYJ

     36        1,548   

Nokia OYJb

     815        2,958   

Nokian Renkaat OYJ

     23        1,047   

Sampo OYJ Class A

     84        3,109   

Stora Enso OYJ Class R

     162        1,091   

UPM-Kymmene OYJ

     133        1,557   

Wartsila OYJ Abp

     44        2,036   
   

 

 

  
      19,183   

FRANCE — 3.91%

    

Accor SA

     40        1,445   

ALSTOM

     52        2,298   

ArcelorMittal

     199        2,996   

Arkema SA

     16        1,628   

Atos SA

     17        1,264   

AXA SA

     371        6,453   

BNP Paribas SA

     211        11,891   

Bouygues SA

     46        1,301   

Bureau Veritas SA

     16        2,066   

Cap Gemini SA

     37        1,823   

Carrefour SA

     137        3,740   

Casino Guichard-Perrachon SA

     16        1,611   

Christian Dior SA

     11        1,840   

Compagnie de Saint-Gobain

     90        3,595   

Compagnie Generale de Geophysique-Veritasa

     36        895   

Compagnie Generale des Etablissements Michelin Class B

     35        3,132   

Credit Agricole SAa

     226        2,127   

Danone SA

     126        8,762   

Dassault Systemes SA

     16        1,819   

Edenred SA

     44        1,524   

Electricite de France SA

     49        928   

Essilor International SA

     45        4,651   

European Aeronautic Defence and Space Co. NV

     96        4,917   

Eutelsat Communications SA

     38        1,371   
Security   Shares     Value  
   

France Telecom SA

     355      $ 3,443   

GDF Suez

     274        5,187   

Gemalto NV

     19        1,732   

Groupe Eurotunnel SA Registered

     159        1,347   

Iliad SA

     6        1,150   

Klepierre

     39        1,605   

L’Air Liquide SA

     67        8,164   

L’Oreal SA

     48        7,188   

Lafarge SA

     47        3,173   

Lagardere SCA

     30        1,072   

Legrand SA

     63        2,900   

LVMH Moet Hennessy Louis Vuitton SA

     53        9,139   

Pernod Ricard SA

     48        6,237   

PPR SA

     16        3,592   

Publicis Groupe SA

     42        2,780   

Renault SA

     36        2,288   

Safran SA

     57        2,614   

Sanofi

     248        23,532   

Schneider Electric SA

     116        8,935   

SCOR SE

     44        1,246   

SES SA Class A FDR

     59        1,819   

Societe BIC SA

     10        1,169   

Societe Generalea

     151        5,806   

Sodexo

     25        2,319   

STMicroelectronics NV

     157        1,254   

Suez Environnement SA

     71        948   

Technip SA

     23        2,495   

Thales SA

     31        1,094   

Total SA

     449        22,479   

Unibail-Rodamco SE

     24        5,547   

Vallourec SA

     25        1,335   

Veolia Environnement

     79        995   

Vinci SA

     103        4,774   

Vivendi SA

     273        5,753   
   

 

 

  
      229,188   

GERMANY — 3.43%

    

Adidas AG

     49        4,471   

Allianz SE Registered

     99        13,551   

BASF SE

     202        19,062   

Bayer AG Registered

     179        17,752   

Bayerische Motoren Werke AG

     70        6,470   

Beiersdorf AG

     27        2,358   
 

 

24    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI WORLD INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Brenntag AG

     18      $ 2,570   

Commerzbank AGa

     848        1,566   

Continental AG

     23        2,703   

Daimler AG Registered

     185        11,045   

Deutsche Bank AG Registered

     205        9,404   

Deutsche Boerse AG

     47        2,918   

Deutsche Post AG Registered

     229        5,145   

Deutsche Telekom AG Registered

     605        6,507   

E.ON SE

     399        6,672   

Fresenius Medical Care AG & Co. KGaA

     50        3,434   

Fresenius SE & Co. KGaA

     30        3,692   

GEA Group AG

     61        2,175   

Hannover Rueckversicherung AG Registered

     20        1,567   

HeidelbergCement AG

     40        2,762   

Henkel AG & Co. KGaA

     32        2,371   

Infineon Technologies AG

     270        2,316   

K+S AG Registered

     46        2,165   

Kabel Deutschland Holding AG

     26        2,258   

Lanxess AG

     24        2,037   

Linde AG

     44        7,990   

MAN SE

     13        1,496   

Merck KGaA

     15        2,118   

METRO AG

     37        1,146   

Muenchener Rueckversicherungs-Gesellschaft AG Registered

     42        7,561   

QIAGEN NVa

     73        1,554   

RWE AG

     118        4,340   

SAP AG

     203        15,884   

Siemens AG Registered

     182        18,945   

ThyssenKrupp AGa

     97        2,191   

Volkswagen AG

     4        825   
   

 

 

  
      201,021   

GREECE — 0.03%

    

Coca-Cola Hellenic Bottling Co. SAa

     49        1,339   

OPAP SA

     70        597   
   

 

 

  
      1,936   

HONG KONG — 1.31%

    

AIA Group Ltd.

     4,200        18,198   

Bank of East Asia Ltd. (The)

     800        3,270   

BOC Hong Kong (Holdings) Ltd.

     1,500        5,058   

CLP Holdings Ltd.

     1,000        8,607   

Hang Seng Bank Ltd.

     400        6,468   
Security   Shares     Value  
   

Hong Kong and China Gas Co. Ltd. (The)

     2,400      $ 6,716   

Hong Kong Exchanges and Clearing Ltd.

     400        7,195   

Link REIT (The)

     1,000        5,345   

MTR Corp. Ltd.

     1,500        6,190   

New World Development Co. Ltd.

     2,000        3,683   

Sands China Ltd.

     800        3,812   

Wynn Macau Ltd.a

     800        2,110   
   

 

 

  
      76,652   

IRELAND — 0.13%

    

CRH PLC

     170        3,716   

Elan Corp. PLCa

     120        1,341   

Kerry Group PLC Class A

     44        2,471   
   

 

 

  
      7,528   

ISRAEL — 0.22%

    

Bank Hapoalim BMa

     500        2,217   

Israel Chemicals Ltd.

     179        2,314   

Teva Pharmaceutical Industries Ltd.

     225        8,427   
   

 

 

  
      12,958   

ITALY — 0.81%

    

Assicurazioni Generali SpA

     256        4,157   

Atlantia SpA

     82        1,420   

Banca Monte dei Paschi di Siena SpAa

     1,543        426   

Enel Green Power SpA

     484        897   

Enel SpA

     1,430        5,182   

Eni SpA

     544        12,417   

Fiat Industrial SpA

     207        2,521   

Fiat SpAa

     175        940   

Intesa Sanpaolo SpA

     2,273        3,694   

Luxottica Group SpA

     36        1,674   

Saipem SpA

     58        1,553   

Snam SpA

     405        1,923   

Telecom Italia SpA

     2,079        1,537   

Telecom Italia SpA RNC

     1,151        743   

Tenaris SA

     103        2,122   

Terna SpA

     366        1,532   

UniCredit SpAa

     874        4,447   
   

 

 

  
      47,185   

JAPAN — 8.60%

    

AEON Co. Ltd.

     300        3,388   

Asahi Group Holdings Ltd.

     200        5,073   

Astellas Pharma Inc.

     200        10,861   

Bridgestone Corp.

     200        6,165   
 

 

SCHEDULES OF INVESTMENTS

      25   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI WORLD INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Canon Inc.

     300      $ 10,942   

Chubu Electric Power Co. Inc.

     200        2,519   

Chugai Pharmaceutical Co. Ltd.

     200        4,346   

Chugoku Electric Power Co. Inc. (The)

     200        2,526   

Dai-ichi Life Insurance Co. Ltd. (The)

     4        5,636   

Daiichi Sankyo Co. Ltd.

     200        3,596   

Denso Corp.

     200        8,433   

East Japan Railway Co.

     200        14,828   

FUJIFILM Holdings Corp.

     200        3,859   

Hakuhodo DY Holdings Inc.

     40        3,052   

Hitachi Ltd.

     2,000        11,273   

Honda Motor Co. Ltd.

     500        18,724   

Hoya Corp.

     200        3,854   

Isetan Mitsukoshi Holdings Ltd.

     200        2,224   

ITOCHU Corp.

     600        6,959   

Japan Retail Fund Investment Corp.

     2        3,928   

Japan Tobacco Inc.

     300        9,511   

JFE Holdings Inc.

     200        4,307   

JTEKT Corp.

     200        2,003   

Jupiter Telecommunications Co. Ltd.

     2        2,666   

JX Holdings Inc.

     1,000        6,135   

Kansai Electric Power Co. Inc. (The)

     300        2,601   

Kao Corp.

     200        6,425   

Kobe Steel Ltd.a

     2,000        2,710   

Komatsu Ltd.

     300        7,603   

Kuraray Co. Ltd.

     200        2,731   

Kyushu Electric Power Co. Inc.

     200        1,927   

Marui Group Co. Ltd.

     200        1,715   

Mazda Motor Corp.a

     1,000        3,024   

Mitsubishi Corp.

     600        11,960   

Mitsubishi Motors Corp.a

     2,000        2,211   

Mitsubishi UFJ Financial Group Inc.

     4,500        25,022   

Mitsubishi UFJ Lease & Finance Co. Ltd.

     50        2,322   

Mitsui & Co. Ltd.

     800        11,914   

Mizuho Financial Group Inc.

     9,200        20,343   

MS&AD Insurance Group Holdings Inc.

     200        4,158   

NEC Corp.a

     1,000        2,482   

Nikon Corp.

     100        2,255   

Nippon Steel & Sumitomo Metal Corp.

     2,470        6,720   

Nippon Telegraph and Telephone Corp.

     200        9,213   

Nissan Motor Co. Ltd.

     900        9,141   

NKSJ Holdings Inc.

     200        4,255   

Nomura Holdings Inc.

     1,400        8,073   
Security   Shares     Value  
   

NTT DOCOMO Inc.

     6      $ 9,326   

ORIX Corp.

     40        4,474   

Otsuka Holdings Co. Ltd.

     200        6,434   

Panasonic Corp.

     800        5,792   

Rakuten Inc.

     400        3,473   

Resona Holdings Inc.

     1,000        4,607   

Seven & I Holdings Co. Ltd.

     200        5,866   

Seven Bank Ltd.

     1,100        2,909   

Shin-Etsu Chemical Co. Ltd.

     200        12,356   

Shionogi & Co. Ltd.

     200        4,095   

Shiseido Co. Ltd.

     200        2,664   

SoftBank Corp.

     200        7,446   

Sojitz Corp.

     1,100        1,693   

Sony Corp.

     400        5,801   

Sumitomo Corp.

     400        4,917   

Sumitomo Electric Industries Ltd.

     400        4,682   

Sumitomo Mitsui Financial Group Inc.

     500        20,106   

Sumitomo Mitsui Trust Holdings Inc.

     2,000        7,804   

Suzuki Motor Corp.

     200        4,806   

T&D Holdings Inc.

     200        2,385   

Takeda Pharmaceutical Co. Ltd.

     300        15,592   

Tohoku Electric Power Co. Inc.a

     200        1,554   

Tokio Marine Holdings Inc.

     200        5,675   

Tokyo Electric Power Co. Inc.a

     200        455   

Toshiba Corp.

     1,000        4,628   

Toyota Motor Corp.

     700        36,153   

USS Co. Ltd.

     20        2,209   

Yahoo! Japan Corp.

     8        3,404   

Yamada Denki Co. Ltd.

     40        1,461   

Yamato Holdings Co. Ltd.

     200        3,362   

Yokogawa Electric Corp.

     200        2,018   
   

 

 

  
      503,760   

NETHERLANDS — 0.99%

  

AEGON NV

     352        2,109   

Akzo Nobel NV

     54        3,454   

ASML Holding NV

     70        4,989   

Corio NV

     25        1,155   

D.E Master Blenders 1753 NVa

     138        1,665   

Fugro NV CVA

     16        763   

Heineken Holding NV

     24        1,506   

Heineken NV

     49        3,664   

ING Groep NV CVAa

     815        6,561   

Koninklijke Ahold NV

     226        3,250   
 

 

26    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI WORLD INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Koninklijke DSM NV

     33      $ 1,935   

Koninklijke KPN NV

     191        653   

Koninklijke Philips Electronics NV

     231        6,559   

Randstad Holding NV

     30        1,277   

Reed Elsevier NV

     142        2,161   

Royal Vopak NV

     18        1,297   

TNT Express NV

     82        622   

Unilever NV CVA

     340        13,206   

Wolters Kluwer NV

     66        1,317   
   

 

 

  
      58,143   

NEW ZEALAND — 0.05%

    

Fletcher Building Ltd.

     244        1,851   

Telecom Corp. of New Zealand Ltd.

     611        1,226   
   

 

 

  
      3,077   

NORWAY — 0.38%

    

DNB ASA

     195        2,914   

Norsk Hydro ASA

     283        1,256   

Orkla ASA

     253        2,078   

Seadrill Ltd.

     78        2,848   

Statoil ASA

     231        5,761   

Subsea 7 SA

     70        1,660   

Telenor ASA

     153        3,305   

Yara International ASA

     45        2,158   
   

 

 

  
      21,980   

PORTUGAL — 0.08%

    

Energias de Portugal SA

     508        1,526   

Galp Energia SGPS SA Class B

     77        1,190   

Jeronimo Martins SGPS SA

     68        1,357   

Portugal Telecom SGPS SA Registered

     167        847   
   

 

 

  
      4,920   

SINGAPORE — 0.70%

    

Ascendas REIT

     2,000        4,153   

CapitaLand Ltd.

     1,000        3,159   

CapitaMall Trust Management Ltd.

     3,000        5,211   

Genting Singapore PLC

     4,000        5,090   

Global Logistic Properties Ltd.

     1,000        2,052   

Golden Agri-Resources Ltd.

     4,000        2,100   

Hutchison Port Holdings Trust

     4,000        3,240   

Noble Group Ltd.

     5,000        4,787   

Singapore Telecommunications Ltd.

     4,000        11,117   
   

 

 

  
      40,909   
Security   Shares     Value  
   

SPAIN — 1.20%

  

Abertis Infraestructuras SA

     80      $ 1,408   

Acciona SA

     8        492   

Actividades de Construcciones y Servicios SA

     8        190   

Amadeus IT Holding SA Class A

     71        1,819   

Banco Bilbao Vizcaya Argentaria SA

     1,138        11,056   

Banco de Sabadell SAa

     589        1,284   

Banco Santander SA

     2,189        16,630   

CaixaBank

     130        534   

Distribuidora Internacional de Alimentacion SA

     191        1,494   

Enagas SA

     59        1,415   

Ferrovial SA

     110        1,727   

Gas Natural SDG SA

     81        1,609   

Grifols SAa

     39        1,391   

Iberdrola SA

     891        4,415   

Industria de Diseno Textil SA

     46        6,173   

International Consolidated Airlines Group SAa

     540        1,959   

Red Electrica Corporacion SA

     28        1,551   

Repsol SA

     183        3,902   

Telefonica SA

     854        11,165   

Zardoya Otis SA

     6        85   
   

 

 

  
      70,299   

SWEDEN — 1.40%

    

Alfa Laval AB

     93        2,171   

Assa Abloy AB Class B

     92        3,661   

Atlas Copco AB Class A

     131        3,821   

Atlas Copco AB Class B

     112        2,909   

Boliden AB

     103        1,755   

Electrolux AB Class B

     57        1,460   

Elekta AB Class B

     98        1,475   

Getinge AB Class B

     51        1,541   

Hennes & Mauritz AB Class B

     200        7,202   

Hexagon AB Class B

     58        1,659   

Investment AB Kinnevik Class B

     64        1,465   

Investor AB Class B

     123        3,616   

Lundin Petroleum ABa

     52        1,185   

Millicom International Cellular SA SDR

     14        1,102   

Nordea Bank AB

     493        5,725   

Sandvik AB

     236        3,848   

Scania AB Class B

     83        1,733   

Skandinaviska Enskilda Banken AB Class A

     247        2,581   
 

 

SCHEDULES OF INVESTMENTS

      27   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI WORLD INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Skanska AB Class B

     112      $ 1,995   

SKF AB Class B

     100        2,468   

Svenska Cellulosa AB Class B

     122        2,992   

Svenska Handelsbanken AB Class A

     83        3,620   

Swedbank AB Class A

     153        3,691   

Swedish Match AB

     53        1,742   

Tele2 AB Class B

     68        1,087   

Telefonaktiebolaget LM Ericsson Class B

     657        7,996   

TeliaSonera AB

     395        2,720   

Volvo AB Class B

     319        4,801   
   

 

 

  
      82,021   

SWITZERLAND — 3.86%

    

ABB Ltd. Registereda

     499        11,448   

Actelion Ltd. Registereda

     29        1,503   

Adecco SA Registereda

     36        2,062   

Aryzta AGa

     35        2,020   

Baloise Holding AG Registered

     19        1,712   

Compagnie Financiere Richemont SA Class A Bearer

     114        9,205   

Credit Suisse Group AG Registered

     278        7,480   

Geberit AG Registereda

     12        2,914   

Givaudan SA Registereda

     1        1,200   

Holcim Ltd. Registereda

     59        4,789   

Julius Baer Group Ltd.a

     59        2,246   

Kuehne & Nagel International AG Registered

     15        1,733   

Nestle SA Registered

     695        48,781   

Novartis AG Registered

     483        32,943   

Partners Group Holding AG

     8        1,857   

Roche Holding AG Genusschein

     148        34,050   

Schindler Holding AG Participation Certificates

     12        1,867   

Schindler Holding AG Registered

     9        1,360   

SGS SA Registered

     1        2,552   

Sonova Holding AG Registereda

     13        1,563   

Sulzer AG Registered

     9        1,583   

Swatch Group AG (The) Bearer

     8        4,569   

Swiss Life Holding AG Registereda

     9        1,483   

Swiss Prime Site AG Registereda

     31        2,500   

Swiss Re AGa

     72        5,783   

Swisscom AG Registered

     5        2,285   

Syngenta AG Registered

     22        9,385   

Transocean Ltd.

     76        4,017   

UBS AG Registereda

     791        12,570   
Security   Shares     Value  
   

Zurich Insurance Group AGa

     31      $ 8,521   
   

 

 

  
      225,981   

UNITED KINGDOM — 9.25%

    

3i Group PLC

     299        1,454   

Aberdeen Asset Management PLC

     267        1,742   

Admiral Group PLC

     47        893   

Aggreko PLC

     68        1,751   

AMEC PLC

     79        1,252   

Anglo American PLC

     300        8,752   

Antofagasta PLC

     99        1,643   

ARM Holdings PLC

     318        4,610   

Associated British Foods PLC

     93        2,614   

AstraZeneca PLC

     244        11,095   

Aviva PLC

     584        3,163   

Babcock International Group PLC

     110        1,792   

BAE Systems PLC

     745        4,016   

Balfour Beatty PLC

     225        975   

Barclays PLC

     2,482        11,566   

BG Group PLC

     731        12,933   

BHP Billiton PLC

     458        14,523   

BP PLC

     4,013        27,150   

British American Tobacco PLC

     414        21,583   

British Land Co. PLC

     269        2,317   

British Sky Broadcasting Group PLC

     219        2,827   

BT Group PLC

     1,625        6,603   

Bunzl PLC

     109        2,086   

Burberry Group PLC

     99        2,068   

Capita PLC

     153        1,913   

Capital Shopping Centres Group PLC

     233        1,177   

Carnival PLC

     46        1,730   

Centrica PLC

     1,100        5,879   

Cobham PLC

     351        1,233   

Compass Group PLC

     431        5,237   

Croda International PLC

     39        1,534   

Diageo PLC

     538        16,170   

Experian PLC

     236        3,919   

Fresnillo PLC

     43        1,014   

G4S PLC

     345        1,519   

GKN PLC

     285        1,181   

GlaxoSmithKline PLC

     1,020        22,543   

Glencore International PLC

     835        4,912   

Hammerson PLC

     275        2,064   
 

 

28    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI WORLD INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

HSBC Holdings PLC

     3,819      $ 42,400   

ICAP PLC

     160        809   

IMI PLC

     96        1,782   

Imperial Tobacco Group PLC

     213        7,727   

Inmarsat PLC

     113        1,118   

InterContinental Hotels Group PLC

     76        2,208   

Intertek Group PLC

     43        2,179   

Invensys PLC

     212        1,152   

Investec PLC

     161        1,172   

ITV PLC

     915        1,725   

J Sainsbury PLC

     337        1,769   

Johnson Matthey PLC

     55        1,920   

Kazakhmys PLC

     64        601   

Kingfisher PLC

     516        2,170   

Land Securities Group PLC

     226        2,846   

Legal & General Group PLC

     1,253        3,045   

Lloyds Banking Group PLCa

     9,106        7,529   

London Stock Exchange Group PLC

     52        1,053   

Marks & Spencer Group PLC

     341        1,922   

Meggitt PLC

     260        1,794   

National Grid PLC

     732        8,106   

Next PLC

     37        2,358   

Old Mutual PLC

     989        3,040   

Pearson PLC

     172        3,016   

Petrofac Ltd.

     61        1,346   

Prudential PLC

     527        7,852   

Randgold Resources Ltd.

     20        1,665   

Reckitt Benckiser Group PLC

     131        8,807   

Reed Elsevier PLC

     272        2,927   

Resolution Ltd.

     244        967   

Rexam PLC

     226        1,765   

Rio Tinto PLC

     289        15,534   

Rolls-Royce Holdings PLCa

     426        6,648   

Royal Bank of Scotland Group PLCa

     460        2,262   

Royal Dutch Shell PLC Class A

     617        20,324   

Royal Dutch Shell PLC Class B

     756        25,516   

RSA Insurance Group PLC

     654        1,198   

SABMiller PLC

     206        10,247   

Sage Group PLC (The)

     333        1,719   

SEGRO PLC

     325        1,262   

Serco Group PLC

     152        1,316   

Severn Trent PLC

     56        1,376   

Shire PLC

     117        3,667   
Security   Shares     Value  
   

Smith & Nephew PLC

     209      $ 2,243   

Smiths Group PLC

     108        2,067   

SSE PLC

     202        4,434   

Standard Chartered PLC

     498        13,577   

Standard Life PLC

     496        2,654   

Tate & Lyle PLC

     137        1,690   

Tesco PLC

     1,728        9,695   

Tullow Oil PLC

     198        3,649   

Unilever PLC

     274        10,930   

United Utilities Group PLC

     154        1,723   

Vodafone Group PLC

     10,300        25,884   

Weir Group PLC (The)

     57        2,028   

Whitbread PLC

     52        1,991   

Wm Morrison Supermarkets PLC

     574        2,262   

Wolseley PLC

     68        3,207   

WPP PLC

     273        4,368   

Xstrata PLC

     458        8,082   
   

 

 

  
      541,756   

UNITED STATES — 52.82%

    

3M Co.

     139        14,456   

Abbott Laboratories

     318        10,745   

AbbVie Inc.

     318        11,741   

Accenture PLC Class A

     136        10,113   

ACE Ltd.

     62        5,294   

Actavis Inc.a

     27        2,299   

Activision Blizzard Inc.

     103        1,473   

Adobe Systems Inc.a

     109        4,284   

ADT Corp. (The)

     52        2,490   

Advance Auto Parts Inc.

     17        1,298   

AES Corp. (The)

     147        1,708   

Aetna Inc.

     73        3,445   

Affiliated Managers Group Inc.a

     15        2,193   

Aflac Inc.

     96        4,795   

AGCO Corp.

     28        1,441   

Agilent Technologies Inc.

     75        3,111   

Air Products and Chemicals Inc.

     46        3,972   

Airgas Inc.

     18        1,805   

Akamai Technologies Inc.a

     43        1,589   

Albemarle Corp.

     24        1,562   

Alcoa Inc.

     274        2,334   

Alexion Pharmaceuticals Inc.a

     44        3,817   

Alleghany Corp.a

     2        756   

Allegheny Technologies Inc.

     28        853   
 

 

SCHEDULES OF INVESTMENTS

      29   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI WORLD INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Allergan Inc.

     62      $ 6,722   

Alliance Data Systems Corp.a

     13        2,063   

Alliant Energy Corp.

     33        1,574   

Allstate Corp. (The)

     91        4,188   

Altera Corp.

     76        2,692   

Altria Group Inc.

     427        14,326   

Amazon.com Inc.a

     78        20,613   

Ameren Corp.

     50        1,690   

American Capital Agency Corp.

     99        3,140   

American Electric Power Co. Inc.

     98        4,585   

American Express Co.

     210        13,051   

American International Group Inc.a

     294        11,175   

American Tower Corp.

     97        7,527   

American Water Works Co. Inc.

     47        1,854   

Ameriprise Financial Inc.

     48        3,294   

AmerisourceBergen Corp.

     57        2,690   

AMETEK Inc.

     67        2,803   

Amgen Inc.

     162        14,808   

Amphenol Corp. Class A

     37        2,622   

Anadarko Petroleum Corp.

     105        8,356   

Analog Devices Inc.

     72        3,256   

Annaly Capital Management Inc.

     231        3,578   

ANSYS Inc.a

     25        1,895   

Aon PLC

     55        3,360   

Apache Corp.

     82        6,090   

Apple Inc.

     202        89,163   

Applied Materials Inc.

     288        3,946   

Arch Capital Group Ltd.a

     28        1,375   

Archer-Daniels-Midland Co.

     147        4,683   

Arrow Electronics Inc.a

     27        1,084   

Assurant Inc.

     20        840   

AT&T Inc.

     1,213        43,559   

Autodesk Inc.a

     54        1,983   

Autoliv Inc.

     14        913   

Automatic Data Processing Inc.

     102        6,259   

AutoZone Inc.a,b

     7        2,661   

Avago Technologies Ltd.

     61        2,087   

AvalonBay Communities Inc.

     29        3,620   

Avery Dennison Corp.

     32        1,307   

Avnet Inc.a

     35        1,236   

Avon Products Inc.

     88        1,720   

Axis Capital Holdings Ltd.

     24        978   

Baker Hughes Inc.

     93        4,168   
Security   Shares     Value  
   

Ball Corp.

     42      $ 1,865   

Bank of America Corp.

     2,310        25,941   

Bank of New York Mellon Corp. (The)

     253        6,866   

Baxter International Inc.

     115        7,774   

BB&T Corp.

     137        4,159   

Beam Inc.

     36        2,197   

Becton, Dickinson and Co.

     40        3,522   

Bed Bath & Beyond Inc.a

     50        2,837   

Berkshire Hathaway Inc. Class Ba

     181        18,491   

Best Buy Co. Inc.

     62        1,017   

Biogen Idec Inc.a

     49        8,151   

BlackRock Inc.c

     28        6,713   

BMC Software Inc.a

     39        1,563   

Boeing Co. (The)

     153        11,766   

BorgWarner Inc.a

     21        1,563   

Boston Properties Inc.

     38        3,947   

Boston Scientific Corp.a

     326        2,409   

Bristol-Myers Squibb Co.

     335        12,385   

Broadcom Corp. Class A

     115        3,923   

Brown-Forman Corp. Class B NVS

     33        2,165   

Bunge Ltd.

     35        2,594   

C.H. Robinson Worldwide Inc.

     38        2,167   

C.R. Bard Inc.

     18        1,779   

CA Inc.

     77        1,886   

Cabot Oil & Gas Corp.

     49        3,037   

Calpine Corp.a

     71        1,306   

Cameron International Corp.a

     54        3,441   

Campbell Soup Co.

     45        1,852   

Capital One Financial Corp.

     123        6,277   

Cardinal Health Inc.

     72        3,327   

CareFusion Corp.a

     55        1,801   

CarMax Inc.a

     51        1,959   

Carnival Corp.

     100        3,577   

Caterpillar Inc.

     141        13,024   

CBRE Group Inc. Class Aa

     89        2,151   

CBS Corp. Class B NVS

     130        5,641   

Celanese Corp. Series A

     39        1,827   

Celgene Corp.a

     94        9,699   

CenterPoint Energy Inc.

     94        2,014   

CenturyLink Inc.

     119        4,126   

Cerner Corp.a

     34        2,974   

CF Industries Holdings Inc.

     14        2,812   

Charles Schwab Corp. (The)

     239        3,881   
 

 

30    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI WORLD INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Charter Communications Inc. Class Aa

     8      $ 691   

Chesapeake Energy Corp.b

     145        2,923   

Chevron Corp.

     414        48,500   

Chipotle Mexican Grill Inc.a

     7        2,218   

Chubb Corp. (The)

     48        4,033   

Church & Dwight Co. Inc.

     31        1,921   

Cigna Corp.

     63        3,683   

Cimarex Energy Co.

     20        1,346   

Cincinnati Financial Corp.

     28        1,260   

Cintas Corp.

     35        1,537   

Cisco Systems Inc.

     1,149        23,957   

CIT Group Inc.a

     39        1,633   

Citigroup Inc.

     628        26,357   

Citrix Systems Inc.a

     43        3,049   

Cliffs Natural Resources Inc.

     34        866   

Clorox Co. (The)

     23        1,932   

CME Group Inc.

     69        4,128   

CMS Energy Corp.

     69        1,836   

Coach Inc.

     62        2,996   

Cobalt International Energy Inc.a

     43        1,061   

Coca-Cola Co. (The)

     861        33,338   

Coca-Cola Enterprises Inc.

     73        2,612   

Cognizant Technology Solutions Corp. Class Aa

     67        5,144   

Colgate-Palmolive Co.

     100        11,443   

Comcast Corp. Class A

     473        18,821   

Comcast Corp. Class A Special NVS

     99        3,793   

Comerica Inc.

     41        1,410   

Computer Sciences Corp.

     36        1,729   

ConAgra Foods Inc.

     98        3,343   

Concho Resources Inc.a

     24        2,159   

ConocoPhillips

     230        13,328   

CONSOL Energy Inc.

     53        1,704   

Consolidated Edison Inc.

     58        3,422   

Constellation Brands Inc. Class Aa

     38        1,681   

Continental Resources Inc.a

     13        1,144   

Core Laboratories NV

     11        1,509   

Corning Inc.

     313        3,947   

Costco Wholesale Corp.

     95        9,623   

Coventry Health Care Inc.

     32        1,452   

Covidien PLC

     101        6,421   

Cree Inc.a

     29        1,312   

Crimson Wine Group Ltd.a

     6        48   
Security   Shares     Value  
   

Crown Castle International Corp.a

     64      $ 4,467   

Crown Holdings Inc.a

     42        1,633   

CSX Corp.

     228        5,230   

Cummins Inc.

     41        4,751   

CVS Caremark Corp.

     276        14,109   

D.R. Horton Inc.

     68        1,516   

Danaher Corp.

     131        8,070   

Darden Restaurants Inc.

     35        1,619   

DaVita HealthCare Partners Inc.a

     22        2,632   

Deere & Co.

     81        7,114   

Dell Inc.

     313        4,366   

Delphi Automotive PLCa

     57        2,385   

Denbury Resources Inc.a

     94        1,703   

DENTSPLY International Inc.

     37        1,533   

Devon Energy Corp.

     80        4,341   

Diamond Offshore Drilling Inc.

     16        1,115   

Dick’s Sporting Goods Inc.

     25        1,250   

Digital Realty Trust Inc.

     35        2,344   

DIRECTVa

     133        6,407   

Discover Financial Services

     112        4,315   

Discovery Communications Inc. Series Aa

     34        2,493   

Discovery Communications Inc. Series C NVSa

     21        1,355   

DISH Network Corp. Class A

     45        1,566   

Dollar General Corp.a

     57        2,641   

Dollar Tree Inc.a

     52        2,350   

Dominion Resources Inc.

     115        6,440   

Dover Corp.

     45        3,301   

Dow Chemical Co. (The)

     256        8,120   

Dr Pepper Snapple Group Inc.

     52        2,268   

DTE Energy Co.

     39        2,605   

Duke Energy Corp.

     142        9,833   

Duke Realty Corp.

     86        1,390   

Dun & Bradstreet Corp. (The)

     14        1,128   

E.I. du Pont de Nemours and Co.

     195        9,340   

Eastman Chemical Co.

     38        2,650   

Eaton Corp. PLC

     105        6,507   

Eaton Vance Corp. NVS

     40        1,528   

eBay Inc.a

     253        13,834   

Ecolab Inc.

     66        5,052   

Edison International

     63        3,026   

Edwards Lifesciences Corp.a

     27        2,320   

Electronic Arts Inc.a

     80        1,402   
 

 

SCHEDULES OF INVESTMENTS

      31   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI WORLD INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Eli Lilly and Co.

     200      $ 10,932   

EMC Corp.a

     451        10,378   

Emerson Electric Co.

     158        8,959   

Energen Corp.

     21        971   

Energizer Holdings Inc.

     14        1,287   

Ensco PLC Class A

     52        3,127   

Entergy Corp.

     36        2,241   

EOG Resources Inc.

     59        7,417   

EQT Corp.

     35        2,208   

Equifax Inc.

     34        1,874   

Equinix Inc.a

     12        2,539   

Equity Residential

     75        4,128   

Estee Lauder Companies Inc. (The) Class A

     50        3,205   

Everest Re Group Ltd.

     11        1,371   

Exelon Corp.

     168        5,206   

Expedia Inc.

     23        1,468   

Expeditors International of Washington Inc.

     52        2,020   

Express Scripts Holding Co.a

     175        9,959   

Exxon Mobil Corp.

     987        88,386   

F5 Networks Inc.a

     19        1,794   

Facebook Inc. Class Aa

     215        5,859   

Family Dollar Stores Inc.

     23        1,324   

Fastenal Co.

     69        3,562   

Federal Realty Investment Trust

     25        2,655   

FedEx Corp.

     64        6,748   

Fidelity National Financial Inc. Class A

     41        1,023   

Fidelity National Information Services Inc.

     55        2,071   

Fifth Third Bancorp

     178        2,820   

First Republic Bank

     23        838   

FirstEnergy Corp.

     85        3,356   

Fiserv Inc.a

     32        2,628   

Flextronics International Ltd.a

     173        1,150   

FLIR Systems Inc.

     44        1,159   

Flowserve Corp.

     15        2,408   

Fluor Corp.

     43        2,662   

FMC Corp.

     37        2,230   

FMC Technologies Inc.a

     53        2,751   

Ford Motor Co.

     689        8,688   

Forest Laboratories Inc.a

     61        2,245   

Fossil Inc.a

     12        1,233   

Franklin Resources Inc.

     32        4,520   

Freeport-McMoRan Copper & Gold Inc.

     209        6,671   

Frontier Communications Corp.

     221        915   
Security   Shares     Value  
   

Gap Inc. (The)

     69      $ 2,271   

Garmin Ltd.b

     23        790   

General Dynamics Corp.

     66        4,486   

General Electric Co.

     2,257        52,408   

General Growth Properties Inc.

     117        2,239   

General Mills Inc.

     137        6,336   

General Motors Co.a

     144        3,910   

Genuine Parts Co.

     33        2,344   

Gilead Sciences Inc.a

     328        14,009   

Goldman Sachs Group Inc. (The)

     97        14,527   

Google Inc. Class Aa

     56        44,867   

Green Mountain Coffee Roasters Inc.a

     31        1,481   

H&R Block Inc.

     79        1,964   

H.J. Heinz Co.

     70        5,070   

Halliburton Co.

     198        8,219   

Harley-Davidson Inc.

     41        2,158   

Harris Corp.

     30        1,442   

Hartford Financial Services Group Inc. (The)

     89        2,101   

Hasbro Inc.b

     25        1,001   

HCA Holdings Inc.

     48        1,780   

HCP Inc.

     113        5,523   

Health Care REIT Inc.

     68        4,362   

Helmerich & Payne Inc.

     25        1,657   

Henry Schein Inc.a

     23        2,052   

Herbalife Ltd.b

     26        1,048   

Hershey Co. (The)

     37        3,084   

Hertz Global Holdings Inc.a

     81        1,616   

Hess Corp.

     67        4,455   

Hewlett-Packard Co.

     418        8,419   

HollyFrontier Corp.

     44        2,473   

Hologic Inc.a

     69        1,506   

Home Depot Inc. (The)

     321        21,988   

Honeywell International Inc.

     161        11,286   

Hormel Foods Corp.

     26        973   

Hospira Inc.a

     34        1,001   

Host Hotels & Resorts Inc.

     186        3,101   

Humana Inc.

     36        2,457   

IHS Inc. Class Aa

     15        1,594   

Illinois Tool Works Inc.

     96        5,904   

Illumina Inc.a

     28        1,404   

Ingersoll-Rand PLC

     73        3,843   

Integrys Energy Group Inc.

     24        1,358   

Intel Corp.

     1,071        22,330   
 

 

32    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI WORLD INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

IntercontinentalExchange Inc.a

     17      $ 2,632   

International Business Machines Corp.

     230        46,191   

International Flavors & Fragrances Inc.

     23        1,679   

International Game Technology

     70        1,116   

International Paper Co.

     94        4,137   

Interpublic Group of Companies Inc. (The)

     111        1,419   

Intuit Inc.

     63        4,062   

Intuitive Surgical Inc.a

     9        4,589   

Invesco Ltd.

     105        2,813   

Iron Mountain Inc.

     38        1,311   

J.B. Hunt Transport Services Inc.

     26        1,808   

J.C. Penney Co. Inc.b

     40        703   

J.M. Smucker Co. (The)

     27        2,573   

J.P. Morgan Chase & Co.

     806        39,430   

Jacobs Engineering Group Inc.a

     40        1,954   

Johnson & Johnson

     587        44,677   

Johnson Controls Inc.

     128        4,028   

Joy Global Inc.

     28        1,774   

Juniper Networks Inc.a

     120        2,482   

Kansas City Southern Industries Inc.

     27        2,780   

KBR Inc.

     43        1,307   

Kellogg Co.

     53        3,206   

KeyCorp

     193        1,812   

Kimberly-Clark Corp.

     85        8,014   

Kimco Realty Corp.b

     124        2,699   

Kinder Morgan Inc.

     141        5,227   

Kinder Morgan Management LLCa

     12        994   

KLA-Tencor Corp.

     42        2,300   

Kohl’s Corp.

     48        2,213   

Kraft Foods Group Inc.

     124        6,010   

Kroger Co. (The)

     122        3,564   

L-3 Communications Holdings Inc.

     25        1,907   

Laboratory Corp. of America Holdingsa

     22        1,949   

Lam Research Corp.a

     40        1,692   

Las Vegas Sands Corp.

     91        4,686   

Legg Mason Inc.

     38        1,083   

Leggett & Platt Inc.

     38        1,162   

Leucadia National Corp.

     60        1,614   

Level 3 Communications Inc.a

     34        679   

Liberty Global Inc. Series Aa

     30        2,067   

Liberty Global Inc. Series C NVSa,b

     24        1,533   

Liberty Interactive Corp. Series Aa

     120        2,506   

Liberty Media Corp.a

     21        2,268   
Security   Shares     Value  
   

Liberty Property Trust

     58      $ 2,250   

Life Technologies Corp.a

     38        2,209   

Limited Brands Inc.

     53        2,413   

Lincoln National Corp.

     62        1,831   

Linear Technology Corp.

     58        2,218   

LinkedIn Corp. Class Aa

     19        3,195   

Lockheed Martin Corp.

     58        5,104   

Loews Corp.

     45        1,940   

Lorillard Inc.

     87        3,353   

Lowe’s Companies Inc.

     251        9,576   

LSI Corp.a

     166        1,155   

Lululemon Athletica Inc.a,b

     23        1,542   

LyondellBasell Industries NV Class A

     71        4,162   

M&T Bank Corp.

     22        2,246   

Macerich Co. (The)

     43        2,585   

Macy’s Inc.

     87        3,576   

Manpower Inc.

     106        5,788   

Marathon Oil Corp.

     149        4,991   

Marathon Petroleum Corp.

     75        6,216   

Marriott International Inc. Class A

     65        2,564   

Marsh & McLennan Companies Inc.

     100        3,714   

Martin Marietta Materials Inc.

     14        1,360   

Marvell Technology Group Ltd.

     120        1,212   

Masco Corp.

     92        1,772   

MasterCard Inc. Class A

     23        11,910   

Mattel Inc.

     70        2,852   

Maxim Integrated Products Inc.

     75        2,339   

McCormick & Co. Inc. NVS

     34        2,287   

McDonald’s Corp.

     212        20,331   

McGraw-Hill Companies Inc. (The)

     56        2,607   

McKesson Corp.

     50        5,306   

MDU Resources Group Inc.

     63        1,522   

Mead Johnson Nutrition Co. Class A

     45        3,371   

MeadWestvaco Corp.

     58        2,071   

Medtronic Inc.

     211        9,487   

Merck & Co. Inc.

     627        26,792   

MetLife Inc.

     171        6,060   

MGM Resorts Internationala

     93        1,162   

Microchip Technology Inc.

     52        1,896   

Micron Technology Inc.a

     243        2,039   

Microsoft Corp.

     1,611        44,786   

Mohawk Industries Inc.a

     15        1,590   

Molson Coors Brewing Co. Class B NVS

     38        1,680   
 

 

SCHEDULES OF INVESTMENTS

      33   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI WORLD INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Mondelez International Inc. Class A

     359      $ 9,926   

Monsanto Co.

     115        11,618   

Monster Beverage Corp.a

     36        1,815   

Moody’s Corp.

     47        2,259   

Morgan Stanley

     321        7,239   

Mosaic Co. (The)

     67        3,922   

Motorola Solutions Inc.

     60        3,733   

Murphy Oil Corp.

     43        2,618   

Mylan Inc.a

     87        2,576   

Nabors Industries Ltd.a

     70        1,173   

NASDAQ OMX Group Inc. (The)

     1        32   

National Oilwell Varco Inc.

     90        6,132   

NetApp Inc.a

     80        2,706   

Netflix Inc.a

     12        2,257   

New York Community Bancorp Inc.

     82        1,107   

Newell Rubbermaid Inc.

     65        1,517   

Newfield Exploration Co.a

     34        786   

Newmont Mining Corp.

     102        4,110   

News Corp. Class A NVS

     343        9,878   

News Corp. Class B

     85        2,487   

NextEra Energy Inc.

     81        5,821   

Nielsen Holdings NVa

     33        1,112   

Nike Inc. Class B

     150        8,169   

NiSource Inc.

     73        2,022   

Noble Corp.

     55        1,970   

Noble Energy Inc.

     39        4,322   

Nordstrom Inc.

     35        1,898   

Norfolk Southern Corp.

     70        5,113   

Northeast Utilities

     69        2,864   

Northern Trust Corp.

     50        2,658   

Northrop Grumman Corp.

     53        3,481   

NRG Energy Inc.

     63        1,512   

Nuance Communications Inc.a

     63        1,160   

Nucor Corp.

     70        3,153   

NVIDIA Corp.

     146        1,848   

NYSE Euronext Inc.

     61        2,274   

O’Reilly Automotive Inc.a

     26        2,645   

Occidental Petroleum Corp.

     172        14,161   

Omnicare Inc.

     31        1,155   

Omnicom Group Inc.

     57        3,279   

ONEOK Inc.

     49        2,205   

Oracle Corp.

     832        28,504   

Owens-Illinois Inc.a

     45        1,148   
Security   Shares     Value  
   

PACCAR Inc.

     79      $ 3,747   

Pall Corp.

     32        2,182   

Parker Hannifin Corp.

     36        3,401   

PartnerRe Ltd.

     12        1,071   

Patterson Companies Inc.

     28        1,018   

Paychex Inc.

     76        2,516   

Pentair Ltd. Registered

     51        2,717   

People’s United Financial Inc.

     86        1,127   

Pepco Holdings Inc.

     68        1,380   

PepsiCo Inc.

     332        25,156   

Perrigo Co.

     19        2,150   

PetSmart Inc.

     26        1,693   

Pfizer Inc.

     1,553        42,506   

PG&E Corp.

     79        3,369   

Philip Morris International Inc.

     360        33,030   

Phillips 66

     130        8,185   

Pinnacle West Capital Corp.

     31        1,734   

Pioneer Natural Resources Co.

     27        3,397   

Plains Exploration & Production Co.a

     30        1,361   

Plum Creek Timber Co. Inc.

     55        2,667   

PNC Financial Services Group Inc. (The)c

     101        6,301   

PPG Industries Inc.

     35        4,713   

PPL Corp.

     104        3,205   

Praxair Inc.

     63        7,122   

Precision Castparts Corp.

     33        6,157   

Priceline.com Inc.a

     11        7,563   

Principal Financial Group Inc.

     63        1,991   

Procter & Gamble Co. (The)

     591        45,022   

Progressive Corp. (The)

     109        2,655   

Prologis Inc.

     116        4,517   

Prudential Financial Inc.

     95        5,279   

Public Service Enterprise Group Inc.

     105        3,422   

Public Storage

     36        5,444   

PVH Corp.

     16        1,950   

QEP Resources Inc.

     44        1,340   

QUALCOMM Inc.

     366        24,021   

Quanta Services Inc.a

     63        1,789   

Quest Diagnostics Inc.

     36        2,022   

Rackspace Hosting Inc.a

     28        1,564   

Ralph Lauren Corp.

     13        2,255   

Range Resources Corp.

     36        2,765   

Rayonier Inc.

     50        2,793   

Raytheon Co.

     76        4,147   
 

 

34    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI WORLD INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Red Hat Inc.a

     45      $ 2,286   

Regency Centers Corp.

     33        1,712   

Regeneron Pharmaceuticals Inc.a

     17        2,839   

Regions Financial Corp.

     306        2,341   

RenaissanceRe Holdings Ltd.

     10        874   

Republic Services Inc.

     68        2,138   

Reynolds American Inc.

     74        3,232   

Robert Half International Inc.

     42        1,493   

Rock-Tenn Co. Class A

     20        1,769   

Rockwell Automation Inc.

     34        3,072   

Rockwell Collins Inc.

     36        2,164   

Roper Industries Inc.

     27        3,364   

Ross Stores Inc.

     50        2,898   

Rowan Companies PLCa

     39        1,349   

Royal Caribbean Cruises Ltd.

     37        1,290   

Safeway Inc.

     66        1,575   

Salesforce.com Inc.a

     30        5,077   

SanDisk Corp.a

     54        2,721   

SBA Communications Corp. Class Aa

     27        1,920   

SCANA Corp.

     33        1,612   

Schlumberger Ltd.

     280        21,798   

Scripps Networks Interactive Inc. Class A

     22        1,387   

Seagate Technology PLC

     79        2,541   

SEI Investments Co.

     54        1,527   

Sempra Energy

     49        3,810   

Sherwin-Williams Co. (The)

     21        3,393   

Sigma-Aldrich Corp.

     31        2,389   

Simon Property Group Inc.

     67        10,644   

Sirius XM Radio Inc.

     908        2,815   

SL Green Realty Corp.

     28        2,285   

SLM Corp.

     112        2,125   

Southern Co. (The)

     176        7,922   

Southwestern Energy Co.a

     78        2,673   

Spectra Energy Corp.

     134        3,891   

Sprint Nextel Corp.a

     651        3,776   

SPX Corp.

     26        2,093   

St. Jude Medical Inc.

     69        2,829   

Stanley Black & Decker Inc.

     38        2,991   

Staples Inc.

     148        1,951   

Starbucks Corp.

     166        9,100   

Starwood Hotels & Resorts Worldwide Inc.

     48        2,896   

State Street Corp.

     101        5,716   

Stericycle Inc.a

     22        2,110   
Security   Shares     Value  
   

Stryker Corp.

     64      $ 4,088   

SunTrust Banks Inc.

     117        3,228   

Superior Energy Services Inc.a

     41        1,084   

Symantec Corp.a

     157        3,680   

Synopsys Inc.a

     45        1,576   

Sysco Corp.

     135        4,342   

T. Rowe Price Group Inc.

     58        4,129   

Target Corp.

     128        8,059   

TD Ameritrade Holding Corp.

     61        1,160   

TE Connectivity Ltd.

     93        3,732   

Teradata Corp.a

     39        2,264   

Texas Instruments Inc.

     244        8,386   

Textron Inc.

     73        2,106   

Thermo Fisher Scientific Inc.

     75        5,535   

Tiffany & Co.

     28        1,880   

Time Warner Cable Inc.

     64        5,529   

Time Warner Inc.

     199        10,581   

TJX Companies Inc. (The)

     155        6,970   

Toll Brothers Inc.a

     35        1,194   

Torchmark Corp.

     21        1,180   

Total System Services Inc.

     53        1,259   

Tractor Supply Co.

     17        1,768   

TransDigm Group Inc.

     15        2,135   

Travelers Companies Inc. (The)

     72        5,790   

Trimble Navigation Ltd.a

     30        1,783   

TRW Automotive Holdings Corp.a

     19        1,115   

Tyco International Ltd.

     112        3,585   

Tyson Foods Inc. Class A

     76        1,723   

U.S. Bancorp

     375        12,742   

UDR Inc.

     88        2,100   

Ulta Salon, Cosmetics & Fragrance Inc.

     15        1,328   

Ultra Petroleum Corp.a

     37        631   

Union Pacific Corp.

     101        13,848   

United Parcel Service Inc. Class B

     147        12,150   

United Technologies Corp.

     185        16,752   

UnitedHealth Group Inc.

     218        11,652   

Unum Group

     55        1,346   

Urban Outfitters Inc.a

     29        1,175   

Valero Energy Corp.

     122        5,562   

Varian Medical Systems Inc.a

     26        1,836   

Ventas Inc.

     77        5,450   

VeriFone Systems Inc.a

     28        531   

VeriSign Inc.a

     40        1,832   
 

 

SCHEDULES OF INVESTMENTS

      35   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI WORLD INDEX FUND

February 28, 2013

 

Security   Shares     Value  
   

Verisk Analytics Inc. Class Aa

     37      $ 2,165   

Verizon Communications Inc.

     591        27,499   

Vertex Pharmaceuticals Inc.a

     49        2,294   

VF Corp.

     18        2,903   

Viacom Inc. Class B NVS

     99        5,788   

Virgin Media Inc.

     59        2,738   

Visa Inc. Class A

     113        17,926   

VMware Inc. Class Aa

     19        1,365   

Vornado Realty Trust

     42        3,369   

Vulcan Materials Co.

     31        1,579   

W.R. Berkley Corp.

     22        913   

W.W. Grainger Inc.

     15        3,397   

Wal-Mart Stores Inc.

     397        28,100   

Walgreen Co.

     196        8,024   

Walt Disney Co. (The)

     359        19,598   

Warner Chilcott PLC Class A

     44        594   

Waste Management Inc.

     91        3,396   

Waters Corp.a

     19        1,762   

Weatherford International Ltd.a

     172        2,043   

WellPoint Inc.

     70        4,353   

Wells Fargo & Co.

     1,041        36,518   

Western Digital Corp.

     49        2,311   

Western Union Co.

     135        1,894   

Weyerhaeuser Co.

     140        4,117   

Whirlpool Corp.

     17        1,920   

Whiting Petroleum Corp.a

     29        1,412   

Whole Foods Market Inc.

     41        3,510   

Williams Companies Inc. (The)

     150        5,206   

Willis Group Holdings PLC

     34        1,295   

Windstream Corp.

     121        1,039   

Wisconsin Energy Corp.

     54        2,230   

Wyndham Worldwide Corp.

     39        2,349   

Wynn Resorts Ltd.

     19        2,221   

Xcel Energy Inc.

     102        2,927   

Xerox Corp.

     283        2,295   

Xilinx Inc.

     65        2,423   

XL Group PLC

     63        1,804   

Xylem Inc.

     52        1,430   

Yahoo! Inc.a

     249        5,306   

Yum! Brands Inc.

     100        6,548   

Zimmer Holdings Inc.

     39        2,923   
   

 

 

  
      3,093,883   
   

 

 

  

TOTAL COMMON STOCKS

    

(Cost: $5,006,455)

       5,819,474   
Security   Shares     Value  
   

PREFERRED STOCKS — 0.22%

    

GERMANY — 0.22%

    

Henkel AG & Co. KGaA

     39      $ 3,442   

Porsche Automobil Holding SE

     32        2,541   

Volkswagen AG

     31        6,778   
   

 

 

  
      12,761   
   

 

 

  

TOTAL PREFERRED STOCKS

  

  

(Cost: $8,962)

  

     12,761   

SHORT-TERM INVESTMENTS — 0.26%

  

MONEY MARKET FUNDS — 0.26%

  

  

BlackRock Cash Funds: Institutional,
SL Agency Shares

    

0.21%c,d,e

     13,956        13,956   

BlackRock Cash Funds: Prime,
SL Agency Shares

    

0.18%c,d,e

     1,011        1,011   

BlackRock Cash Funds: Treasury,
SL Agency Shares

    

0.04%c,d

     515        515   
   

 

 

  
      15,482   
   

 

 

  

TOTAL SHORT-TERM INVESTMENTS

  

  

(Cost: $15,482)

  

     15,482   
   

 

 

  

TOTAL INVESTMENTS
IN SECURITIES — 99.83%

   

  

(Cost: $5,030,899)

  

     5,847,717   

Other Assets, Less Liabilities — 0.17%

  

     9,862   
   

 

 

  

NET ASSETS — 100.00%

  

   $ 5,857,579   
   

 

 

  

FDR  —  Fiduciary Depositary Receipts

NVS  —  Non-Voting Shares

SDR  —  Swedish Depositary Receipts

 

a 

Non-income earning security.

b 

All or a portion of this security represents a security on loan. See Note 5.

c 

Affiliated issuer. See Note 2.

d 

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

e 

All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

 

 

36    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Statements of Assets and Liabilities (Unaudited)

iSHARES®, INC.

February 28, 2013

 

      iShares MSCI
All Country World
Minimum Volatility
Index Fund		    

iShares MSCI

Emerging
Markets EMEA

Index Fund

     iShares MSCI
Frontier 100
Index Fund		  

ASSETS

       

Investments, at cost:

       

Unaffiliated

    $ 705,950,326      $ 5,578,943      $ 50,867,245   

Affiliated (Note 2)

      17,726,500        5,763        1,820,771   
  

 

 

    

 

 

    

 

 

  

Total cost of investments

    $ 723,676,826      $ 5,584,706      $ 52,688,016   
  

 

 

    

 

 

    

 

 

  

Investments in securities, at fair value (including securities on loana) (Note 1):

       

Unaffiliated

    $ 771,115,208      $ 5,391,257      $ 52,718,284   

Affiliated (Note 2)

      17,929,443        5,763        1,820,771   
  

 

 

    

 

 

    

 

 

  

Total fair value of investments

      789,044,651        5,397,020        54,539,055   

Foreign currencies, at valueb

      386,739        1,492        1,149,441   

Cash

      —        —        71,518   

Receivables:

       

Investment securities sold

      1,197,253        —        —   

Dividends and interest

      1,962,142        4,855        74,874   
  

 

 

    

 

 

    

 

 

  

Total Assets

      792,590,785        5,403,367        55,834,888   
  

 

 

    

 

 

    

 

 

  

LIABILITIES

       

Payables:

       

Investment securities purchased

      1,642,489        —        2,891,181   

Collateral for securities on loan (Note 5)

      14,978,954        —        —   

Deferred foreign capital gains taxes (Note 1)

      —        —        21,085   

Investment advisory fees (Note 2)

      115,873        2,087        26,775   
  

 

 

    

 

 

    

 

 

  

Total Liabilities

      16,737,316        2,087        2,939,041   
  

 

 

    

 

 

    

 

 

  

NET ASSETS

    $ 775,853,469      $ 5,401,280      $ 52,895,847   
  

 

 

    

 

 

    

 

 

  

Net assets consist of:

       

Paid-in capital

    $ 713,305,691      $ 5,166,157      $ 51,056,893   

Undistributed (distributions in excess of) net investment income

      1,394,467        (7,891 )      149,563   

Undistributed net realized gain (accumulated net realized loss)

      (4,199,148 )      430,882        (139,925 ) 

Net unrealized appreciation (depreciation) on investments and translation of assets and liabilities in foreign currencies

      65,352,459        (187,868 )      1,829,316   
  

 

 

    

 

 

    

 

 

  

NET ASSETS

    $ 775,853,469      $ 5,401,280      $ 52,895,847   
  

 

 

    

 

 

    

 

 

  

Shares outstandingc

      13,100,000        100,000        1,850,000   
  

 

 

    

 

 

    

 

 

  

Net asset value per share

    $ 59.23      $ 54.01      $ 28.59   
  

 

 

    

 

 

    

 

 

  

 

a 

Securities on loan with values of $14,570,384, $  — and $  —, respectively. See Note 5.

b 

Cost of foreign currencies: $389,785, $1,507 and $1,149,451, respectively.

c 

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

See notes to financial statements.

 

FINANCIAL STATEMENTS

      37   

Table of Contents

Statements of Assets and Liabilities (Unaudited) (Continued)

iSHARES®, INC.

February 28, 2013

 

     

    
iShares MSCI

World

Index Fund

  

ASSETS

   

Investments, at cost:

   

Unaffiliated

    $ 5,004,073   

Affiliated (Note 2)

      26,826   
  

 

 

  

Total cost of investments

    $ 5,030,899   
  

 

 

  

Investments in securities, at fair value (including securities on loana) (Note 1):

   

Unaffiliated

    $ 5,819,221   

Affiliated (Note 2)

      28,496   
  

 

 

  

Total fair value of investments

      5,847,717   

Foreign currencies, at valueb

      8,061   

Receivables:

   

Dividends and interest

      17,847   
  

 

 

  

Total Assets

      5,873,625   
  

 

 

  

LIABILITIES

   

Payables:

   

Collateral for securities on loan (Note 5)

      14,967   

Investment advisory fees (Note 2)

      1,079   
  

 

 

  

Total Liabilities

      16,046   
  

 

 

  

NET ASSETS

    $ 5,857,579   
  

 

 

  

Net assets consist of:

   

Paid-in capital

    $ 4,475,069   

Undistributed net investment income

      345   

Undistributed net realized gain

      565,680   

Net unrealized appreciation on investments and translation of assets and liabilities in foreign currencies

      816,485   
  

 

 

  

NET ASSETS

    $ 5,857,579   
  

 

 

  

Shares outstandingc

      100,000   
  

 

 

  

Net asset value per share

    $ 58.58   
  

 

 

  

 

a 

Securities on loan with a value of $14,498. See Note 5.

b 

Cost of foreign currencies: $8,242.

c 

$0.001 par value, number of shares authorized: 500 million.

See notes to financial statements.

 

38    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Statements of Operations (Unaudited)

iSHARES®, INC.

Period ended February 28, 2013

 

      iShares MSCI
All Country World
Minimum Volatility
Index Fund		    

iShares MSCI

Emerging
Markets EMEA

Index Fund

     iShares MSCI
Frontier 100
Index Funda		  

NET INVESTMENT INCOME

  

Dividends — unaffiliatedb

    $ 8,629,088      $ 77,968      $ 230,061   

Dividends — affiliated (Note 2)

      296        —        —   

Interest — unaffiliated

      60        —        —   

Interest — affiliated (Note 2)

      443        3        85   

Securities lending income — affiliated (Note 2)

      67,482        —        —   
  

 

 

    

 

 

    

 

 

  

Total investment income

      8,697,369        77,971        230,146   
  

 

 

    

 

 

    

 

 

  

EXPENSES

       

Investment advisory fees (Note 2)

      1,109,494        28,766        80,486   

Commitment fees (Note 7)

      —        —        5   

Interest expense (Note 7)

      —        —        92   
  

 

 

    

 

 

    

 

 

  

Total expenses

      1,109,494        28,766        80,583   

Less investment advisory fees waived (Note 2)

      (457,950 )      (8,038 )      —   
  

 

 

    

 

 

    

 

 

  

Net expenses

      651,544        20,728        80,583   
  

 

 

    

 

 

    

 

 

  

Net investment income

      8,045,825        57,243        149,563   
  

 

 

    

 

 

    

 

 

  

NET REALIZED AND UNREALIZED GAIN (LOSS)

       

Net realized gain (loss) from:

       

Investments — unaffiliatedc

      (1,086,168 )      (39,023 )      (68,182 ) 

Investments — affiliated (Note 2)

      14,078        —        —   

In-kind redemptions — unaffiliated

      —        527,309        —   

Foreign currency transactions

      (61,074 )      1,356        (71,743 ) 
  

 

 

    

 

 

    

 

 

  

Net realized gain (loss)

      (1,133,164 )      489,642        (139,925 ) 
  

 

 

    

 

 

    

 

 

  

Net change in unrealized appreciation/depreciation on:

       

Investmentsd

      45,839,899        158,834        1,829,954   

Translation of assets and liabilities in foreign currencies

      (19,342 )      275        (638 ) 
  

 

 

    

 

 

    

 

 

  

Net change in unrealized appreciation/depreciation

      45,820,557        159,109        1,829,316   
  

 

 

    

 

 

    

 

 

  

Net realized and unrealized gain

      44,687,393        648,751        1,689,391   
  

 

 

    

 

 

    

 

 

  

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

    $ 52,733,218      $ 705,994      $ 1,838,954   
  

 

 

    

 

 

    

 

 

  

 

a 

For the period from September 12, 2012 (commencement of operations) to February 28, 2013.

b 

Net of foreign withholding tax of $326,780, $10,827 and $6,253, respectively.

c 

Net of foreign capital gains taxes of $  —, $  — and $152, respectively.

d 

Net of deferred foreign capital gains taxes of $  —, $  — and $21,085, respectively.

See notes to financial statements.

 

FINANCIAL STATEMENTS

      39   

Table of Contents

Statements of Operations (Unaudited) (Continued)

iSHARES®, INC.

Six months ended February 28, 2013

 

     

    
iShares MSCI

World

Index Fund

  

NET INVESTMENT INCOME

   

Dividends — unaffiliateda

    $ 106,951   

Dividends — affiliated (Note 2)

      218   

Interest — affiliated (Note 2)

      6   

Securities lending income — affiliated (Note 2)

      269   
  

 

 

  

Total investment income

      107,444   
  

 

 

  

EXPENSES

   

Investment advisory fees (Note 2)

      10,660   
  

 

 

  

Total expenses

      10,660   
  

 

 

  

Net investment income

      96,784   
  

 

 

  

NET REALIZED AND UNREALIZED GAIN (LOSS)

   

Net realized gain (loss) from:

   

Investments — unaffiliated

      (6,663 ) 

In-kind redemptions — unaffiliated

      593,734   

In-kind redemptions — affiliated (Note 2)

      313   

Foreign currency transactions

      (270 ) 
  

 

 

  

Net realized gain

      587,114   
  

 

 

  

Net change in unrealized appreciation/depreciation on:

   

Investments

      234,323   

Translation of assets and liabilities in foreign currencies

      (213 ) 
  

 

 

  

Net change in unrealized appreciation/depreciation

      234,110   
  

 

 

  

Net realized and unrealized gain

      821,224   
  

 

 

  

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

    $ 918,008   
  

 

 

  

 

a 

Net of foreign withholding tax of $3,252.

See notes to financial statements.

 

40    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Statements of Changes in Net Assets

iSHARES®, INC.

 

     iShares MSCI
All Country World
Minimum Volatility
Index Fund		     iShares MSCI
Emerging
Markets EMEA
Index Fund		  
      Six months
ended
February 28, 2013
(Unaudited)		    

Period from
October 18, 2011a

to

August 31, 2012

     Six months
ended
February 28, 2013
(Unaudited)		    

Period from
January 18, 2012a

to

August 31, 2012

  

INCREASE (DECREASE) IN NET ASSETS

         

OPERATIONS:

         

Net investment income

    $ 8,045,825      $ 4,968,807      $ 57,243      $ 208,486   

Net realized gain (loss)

      (1,133,164 )      (3,082,429 )      489,642        (225,573 ) 

Net change in unrealized appreciation/depreciation

      45,820,557        19,531,902        159,109        (346,977 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets resulting from operations

      52,733,218        21,418,280        705,994        (364,064 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

DISTRIBUTIONS TO SHAREHOLDERS:

         

From net investment income

      (9,515,750 )      (2,087,970 )      (88,858 )      (178,240 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions to shareholders

      (9,515,750 )      (2,087,970 )      (88,858 )      (178,240 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

CAPITAL SHARE TRANSACTIONS:

         

Proceeds from shares sold

      153,860,413        559,445,278        —        15,732,186   

Cost of shares redeemed

      —        —        (5,559,099 )      (4,846,639 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from capital share transactions

      153,860,413        559,445,278        (5,559,099 )      10,885,547   
  

 

 

    

 

 

    

 

 

    

 

 

  

INCREASE (DECREASE) IN NET ASSETS

      197,077,881        578,775,588        (4,941,963 )      10,343,243   

NET ASSETS

         

Beginning of period

      578,775,588        —        10,343,243        —   
  

 

 

    

 

 

    

 

 

    

 

 

  

End of period

    $ 775,853,469      $ 578,775,588      $ 5,401,280      $ 10,343,243   
  

 

 

    

 

 

    

 

 

    

 

 

  

Undistributed (distributions in excess of) net investment income included in net assets at end of period

    $ 1,394,467      $ 2,864,392      $ (7,891 )    $ 23,724   
  

 

 

    

 

 

    

 

 

    

 

 

  

SHARES ISSUED AND REDEEMED

         

Shares sold

      2,700,000        10,400,000        —        300,000   

Shares redeemed

      —        —        (100,000 )      (100,000 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in shares outstanding

      2,700,000        10,400,000        (100,000 )      200,000   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

a 

Commencement of operations.

See notes to financial statements.

 

FINANCIAL STATEMENTS

      41   

Table of Contents

Statements of Changes in Net Assets (Continued)

iSHARES®, INC.

 

     iShares MSCI
Frontier 100
Index Fund		     iShares MSCI
World
Index Fund		  
     

Period from
September 12, 2012a

to

February 28, 2013
(Unaudited)

     Six months
ended
February 28, 2013
(Unaudited)		    

Period from
January 10, 2012a

to

August 31, 2012

  

INCREASE (DECREASE) IN NET ASSETS

       

OPERATIONS:

       

Net investment income

    $ 149,563      $ 96,784      $ 354,495   

Net realized gain (loss)

      (139,925 )      587,114        247,405   

Net change in unrealized appreciation/depreciation

      1,829,316        234,110        582,375   
  

 

 

    

 

 

    

 

 

  

Net increase in net assets resulting from operations

      1,838,954        918,008        1,184,275   
  

 

 

    

 

 

    

 

 

  

DISTRIBUTIONS TO SHAREHOLDERS:

       

From net investment income

      —        (153,715 )      (295,901 ) 
  

 

 

    

 

 

    

 

 

  

Total distributions to shareholders

      —        (153,715 )      (295,901 ) 
  

 

 

    

 

 

    

 

 

  

CAPITAL SHARE TRANSACTIONS:

       

Proceeds from shares sold

      51,056,893        —        20,127,850   

Cost of shares redeemed

      —        (5,595,722 )      (10,327,216 ) 
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from capital share transactions

      51,056,893        (5,595,722 )      9,800,634   
  

 

 

    

 

 

    

 

 

  

INCREASE (DECREASE) IN NET ASSETS

      52,895,847        (4,831,429 )      10,689,008   

NET ASSETS

       

Beginning of period

      —        10,689,008        —   
  

 

 

    

 

 

    

 

 

  

End of period

    $ 52,895,847      $ 5,857,579      $ 10,689,008   
  

 

 

    

 

 

    

 

 

  

Undistributed net investment income included in net assets at end of period

    $ 149,563      $ 345      $ 57,276   
  

 

 

    

 

 

    

 

 

  

SHARES ISSUED AND REDEEMED

       

Shares sold

      1,850,000        —        400,000   

Shares redeemed

      —        (100,000 )      (200,000 ) 
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in shares outstanding

      1,850,000        (100,000 )      200,000   
  

 

 

    

 

 

    

 

 

  

 

a 

Commencement of operations.

See notes to financial statements.

 

42    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Financial Highlights

iSHARES®, INC.

(For a share outstanding throughout each period)

 

iShares MSCI All Country World Minimum Volatility Index Fund

 

      Six months
ended
Feb. 28, 2013
(Unaudited)		    

Period from
Oct. 18, 2011a

to

Aug. 31, 2012

  

Net asset value, beginning of period

    $ 55.65      $ 50.02   
  

 

 

    

 

 

  

Income from investment operations:

     

Net investment incomeb

      0.69        1.49   

Net realized and unrealized gainc

      3.70        4.67   
  

 

 

    

 

 

  

Total from investment operations

      4.39        6.16   
  

 

 

    

 

 

  

Less distributions from:

     

Net investment income

      (0.81 )      (0.53 ) 
  

 

 

    

 

 

  

Total distributions

      (0.81 )      (0.53 ) 
  

 

 

    

 

 

  

Net asset value, end of period

    $ 59.23      $ 55.65   
  

 

 

    

 

 

  

Total return

      7.98 %d      12.41 %d 
  

 

 

    

 

 

  

Ratios/Supplemental data:

     

Net assets, end of period (000s)

    $ 775,853      $ 578,776   

Ratio of expenses to average net assetse

      0.20 %      0.23 % 

Ratio of expenses to average net assets prior to waived feese

      0.34 %      0.34 % 

Ratio of net investment income to average net assetse

      2.47 %      3.17 % 

Portfolio turnover ratef

      11 %      22 % 

 

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 in Creation Units but include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the six months ended February 28, 2013 and the period ended August 31, 2012 were 11% and 22%, respectively. See Note 4.

See notes to financial statements.

 

FINANCIAL HIGHLIGHTS

      43   

Table of Contents

Financial Highlights (Continued)

iSHARES®, INC.

(For a share outstanding throughout each period)

 

iShares MSCI Emerging Markets EMEA Index Fund

 

      Six months
ended
Feb. 28, 2013
(Unaudited)		    

Period from
Jan. 18, 2012a

to

Aug. 31, 2012

  

Net asset value, beginning of period

    $ 51.72      $ 51.16   
  

 

 

    

 

 

  

Income from investment operations:

     

Net investment incomeb

      0.36        1.43   

Net realized and unrealized gainc

      2.82        0.02   
  

 

 

    

 

 

  

Total from investment operations

      3.18        1.45   
  

 

 

    

 

 

  

Less distributions from:

     

Net investment income

      (0.89 )      (0.89 ) 
  

 

 

    

 

 

  

Total distributions

      (0.89 )      (0.89 ) 
  

 

 

    

 

 

  

Net asset value, end of period

    $ 54.01      $ 51.72   
  

 

 

    

 

 

  

Total return

      6.10 %d      2.91 %d 
  

 

 

    

 

 

  

Ratios/Supplemental data:

     

Net assets, end of period (000s)

    $ 5,401      $ 10,343   

Ratio of expenses to average net assetse

      0.49 %      0.49 % 

Ratio of expenses to average net assets prior to waived feese

      0.68 %      0.68 % 

Ratio of net investment income to average net assetse

      1.35 %      4.46 % 

Portfolio turnover ratef

      4 %      5 % 

 

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.

 

44    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Financial Highlights (Continued)

iSHARES®, INC.

(For a share outstanding throughout the period)

 

iShares MSCI Frontier 100 Index Fund

 

     

Period from
Sep. 12, 2012a

to

Feb. 28, 2013

(Unaudited)

  

Net asset value, beginning of period

    $ 25.25   
  

 

 

  

Income from investment operations:

   

Net investment incomeb

      0.19   

Net realized and unrealized gainc

      3.15   
  

 

 

  

Total from investment operations

      3.34   
  

 

 

  

Net asset value, end of period

    $ 28.59   
  

 

 

  

Total return

      13.23 %d 
  

 

 

  

Ratios/Supplemental data:

   

Net assets, end of period (000s)

    $ 52,896   

Ratio of expenses to average net assetse

      0.79 % 

Ratio of net investment income to average net assetse

      1.47 % 

Portfolio turnover ratef

      4 % 

 

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 in Creation Units but includes portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rate for the period ended February 28, 2013 was 4%. See Note 4.

See notes to financial statements.

 

FINANCIAL HIGHLIGHTS

      45   

Table of Contents

Financial Highlights (Continued)

iSHARES®, INC.

(For a share outstanding throughout each period)

 

iShares MSCI World Index Fund

 

      Six months
ended
Feb. 28, 2013
(Unaudited)		    

Period from
Jan. 10, 2012a

to

Aug. 31, 2012

  

Net asset value, beginning of period

    $ 53.45      $ 50.32   
  

 

 

    

 

 

  

Income from investment operations:

     

Net investment incomeb

      0.60        0.98   

Net realized and unrealized gainc

      5.30        2.89   
  

 

 

    

 

 

  

Total from investment operations

      5.90        3.87   
  

 

 

    

 

 

  

Less distributions from:

     

Net investment income

      (0.77 )      (0.74 ) 
  

 

 

    

 

 

  

Total distributions

      (0.77 )      (0.74 ) 
  

 

 

    

 

 

  

Net asset value, end of period

    $ 58.58      $ 53.45   
  

 

 

    

 

 

  

Total return

      11.13 %d      7.76 %d 
  

 

 

    

 

 

  

Ratios/Supplemental data:

     

Net assets, end of period (000s)

    $ 5,858      $ 10,689   

Ratio of expenses to average net assetse

      0.24 %      0.24 % 

Ratio of net investment income to average net assetse

      2.18 %      2.91 % 

Portfolio turnover ratef

      1 %      3 % 

 

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.

 

46    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

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 MSCI Index Fund    Diversification
Classification

All Country World Minimum Volatility

    Non-diversified

Emerging Markets EMEA

    Non-diversified

Frontier 100a

    Non-diversified

World

    Diversified

 

  a   

The Fund commenced operations on September 12, 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

      47   

Table of Contents

Notes to Financial Statements (Unaudited) (Continued)

iSHARES®, INC.

 

SECURITY VALUATION

Each Fund’s investments are valued at fair value each day that the Fund’s listing exchange is open. 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 BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) provides oversight of the valuation of investments for the Funds. The investments of each Fund are valued pursuant to policies and procedures developed by the Global Valuation Committee and approved by the Board of Directors of the Company (the “Board”).

 

  •  

Equity investments traded on a recognized securities exchange are valued at that day’s last reported trade price or the official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price.

 

  •  

Exchange-traded funds and closed-end funds traded on a recognized securities exchange are valued at that day’s last reported trade price or the official closing price, as applicable, on the exchange where the fund is primarily traded. Funds traded on a recognized exchange for which there were no sales on that day are valued at the last traded price.

 

  •  

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 deemed relevant by the Global Valuation Committee, in accordance with policies approved by the Board. These factors include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other factors, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or other default rates. Valuations based on such factors are reported to the Board on a quarterly basis.

The Global Valuation Committee employs various methods for calibrating valuation approaches for investments where an active market does not exist, including regular due diligence of the Company’s pricing vendors, a regular review of key inputs and assumptions, transactional back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing or stale prices and large movements in market values, and reviews of market related activity.

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 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. The three levels of the fair value hierarchy are as follows:

 

  •  

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

 

48    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Notes to Financial Statements (Unaudited) (Continued)

iSHARES®, INC.

 

  •  

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 (such as exchange rates, financing terms, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; 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. In accordance with the Company’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period.

The following table summarizes the value of each of the Funds’ investments according to the fair value hierarchy as of February 28, 2013. The breakdown of each Fund’s investments into major categories is disclosed in its respective schedule of investments.

 

iShares MSCI Index Fund and
Investment Type

 

    Investments  
   Level 1      Level 2      Level 3      Total  

All Country World Minimum Volatility

            

Assets:

            

Common Stocks

    $ 768,631,113       $ —       $ —       $ 768,631,113   

Investment Companies

      1,937,861         —         —         1,937,861   

Preferred Stocks

      2,484,095         —         —         2,484,095   

Money Market Funds

      15,991,582         —         —         15,991,582   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 789,044,651       $ —       $ —       $ 789,044,651   
  

 

 

     

 

 

     

 

 

     

 

 

  

Emerging Markets EMEA

            

Assets:

            

Common Stocks

    $ 5,300,595       $ —       $ —       $ 5,300,595   

Preferred Stocks

      90,662         —         —         90,662   

Money Market Funds

      5,763         —         —         5,763   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 5,397,020       $ —       $ —       $ 5,397,020   
  

 

 

     

 

 

     

 

 

     

 

 

  

Frontier 100

            

Assets:

            

Common Stocks

    $ 52,698,586       $ 101       $ —       $ 52,698,687   

Rights

      —         19,597         —         19,597   

Money Market Funds

      1,820,771         —         —         1,820,771   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 54,519,357       $ 19,698       $ —       $ 54,539,055   
  

 

 

     

 

 

     

 

 

     

 

 

  
                                     

 

NOTES TO FINANCIAL STATEMENTS

      49   

Table of Contents

Notes to Financial Statements (Unaudited) (Continued)

iSHARES®, INC.

 

iShares MSCI Index Fund and
Investment Type

 

    Investments  
   Level 1      Level 2      Level 3      Total  

World

            

Assets:

            

Common Stocks

    $ 5,819,474       $ —       $ —       $ 5,819,474   

Preferred Stocks

      12,761         —         —         12,761   

Money Market Funds

      15,482         —         —         15,482   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 5,847,717       $ —       $ —       $ 5,847,717   
  

 

 

     

 

 

     

 

 

     

 

 

  
                                     

SECURITY TRANSACTIONS AND INCOME RECOGNITION

Security transactions are accounted for on trade date. Dividend income is recognized on the ex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities as of February 28, 2013 are reflected in dividends receivable. Non-cash dividends received in the form of stock in an elective dividend, if any, are recorded as dividend income at fair value. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. Interest income is accrued daily. Realized gains and losses on investment transactions are determined using the specific identification method.

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, stock dividends, capital gains on investments, or certain foreign currency transactions. 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 stock dividends are presented as “other foreign taxes,” and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable as of February 28, 2013, if any, are disclosed in the Funds’ statements of assets and liabilities.

 

50    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Notes to Financial Statements (Unaudited) (Continued)

iSHARES®, INC.

 

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 December 2011, the Financial Accounting Standards Board issued guidance to enhance current disclosure requirements on offsetting of certain assets and liabilities and enable financial statement users to compare financial statements prepared under U.S. GAAP and International Financial Reporting Standards (IFRS). The new disclosures are required for investments and derivative financial instruments subject to master netting agreements or similar agreements and require an entity to disclose both gross and net information about such investments and transactions eligible for offset in the statement of assets and liabilities. In addition, the standard requires disclosure of collateral received and posted in connection with master netting agreements or similar agreements. The guidance is effective for financial statements for fiscal years beginning after January 1, 2013, and interim periods within those fiscal years. Management is evaluating the impact of this guidance on the Funds’ financial statements and disclosures.

 

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.

For its investment advisory services to the iShares MSCI All Country World Minimum Volatility Index Fund, BFA is entitled to an annual investment advisory fee based on the Fund’s allocable portion of the aggregate of the average daily net asset of the Fund and certain other iShares funds, as follows:

 

Investment Advisory Fee      Aggregate Average Daily Net Assets
    0.35 %     

First $30 billion

    0.32       

Over $30 billion, up to and including $60 billion

    0.28       

Over $60 billion

BFA has voluntarily waived a portion of its investment advisory fees for the iShares MSCI All Country World Minimum Volatility Index Fund in the amount of $449,647.

 

NOTES TO FINANCIAL STATEMENTS

      51   

Table of Contents

Notes to Financial Statements (Unaudited) (Continued)

iSHARES®, INC.

 

BFA has contractually agreed to waive a portion of its investment advisory fees for the iShares MSCI All Country World Minimum Volatility Index Fund through June 30, 2014 in an amount equal to the investment advisory fees payable on the amount of the Fund’s investment in other iShares funds. In association with this agreement, for the period ended February 28, 2013, BFA waived its investment advisory fees for the Fund in the amount of $8,303.

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 MSCI Index Fund    Investment
Advisory Fee		  

Emerging Markets EMEA

      0.68 % 

Frontier 100

      0.79   

World

      0.24   

BFA has contractually agreed to waive a portion of its investment advisory fees for the iShares MSCI Emerging Markets EMEA Index Fund through December 31, 2014 in order to limit total annual operating expenses to 0.49% of average daily net assets.

The U.S. Securities and Exchange Commission has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”) to serve as securities lending agent for the Funds, subject to applicable conditions. BTC is an affiliate of BFA. Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, and any fees or other payments to and from borrowers of securities. Each Fund retains 65% of securities lending income and pays a fee to BTC equal to 35% of such income. The Funds benefit from a borrower default indemnity provided by BlackRock. As securities lending agent, BTC bears all operational costs directly related to securities lending as well as the cost of borrower default indemnification. BTC is also responsible for fees and expenses incurred by each Fund as a result of the investment of cash collateral received for securities on loan in a money market fund managed by BFA or an affiliate.

For the period ended February 28, 2013, BTC earned securities lending agent fees from the Funds as follows:

 

iShares MSCI Index Fund    Securities Lending
Agent Fees		  

All Country World Minimum Volatility

    $ 36,337   

World

      145   

BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the 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.

The PNC Financial Services Group, Inc. is the largest stockholder of BlackRock and is considered to be an affiliate of the Funds for 1940 Act purposes.

The iShares MSCI All Country World Minimum Volatility Index Fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the Fund’s underlying index.

 

52    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

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Notes to Financial Statements (Unaudited) (Continued)

iSHARES®, INC.

 

Investments in issuers considered to be affiliates of the Funds (excluding short-term investments) during the period ended February 28, 2013, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

 

iShares MSCI Index Fund and

Name of Affiliated Issuer

   

Shares Held

at Beginning

of Period

      Shares
Purchased		     

Shares

Sold

    

Shares Held

at End
of Period

     

Value at

End

of Period

      Dividend
Income		     

Net

Realized

Gain (Loss)

  

All Country World Minimum Volatility

                    

iShares S&P India Nifty 50 Index Fund

      73,268         17,648         (9,800 )      81,116       $ 1,937,861       $ 296       $ 14,078   
             

 

 

     

 

 

     

 

 

  

World

                    

BlackRock Inc.

      58         —         (30 )      28       $ 6,713       $ 87       $ 682   

PNC Financial Services Group Inc. (The)

      227         —         (126 )      101         6,301         131         (369 ) 
             

 

 

     

 

 

     

 

 

  
              $ 13,014       $ 218       $ 313   
             

 

 

     

 

 

     

 

 

  
                                                               

Certain directors and officers of the Company are also officers of BTC and/or BFA.

 

3. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the period ended February 28, 2013 were as follows:

 

iShares MSCI Index Fund    Purchases      Sales  

All Country World Minimum Volatility

    $   85,190,825       $ 74,948,155   

Emerging Markets EMEA

      364,516         331,486   

Frontier 100

      50,919,804         992,878   

World

      105,132         171,847   

In-kind transactions (see Note 4) for the period ended February 28, 2013 were as follows:

 

iShares MSCI Index Fund    In-kind
Purchases		      In-kind
Sales		  

All Country World Minimum Volatility

    $ 141,040,116       $ —   

Emerging Markets EMEA

      —         5,540,471   

Frontier 100

      1,015,128         —   

World

      —         5,567,743   

 

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.

 

NOTES TO FINANCIAL STATEMENTS

      53   

Table of Contents

Notes to Financial Statements (Unaudited) (Continued)

iSHARES®, INC.

 

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 may also 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.

 

5. LOANS OF PORTFOLIO SECURITIES

Each Fund may lend its investment securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter, at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Funds and any additional required collateral is delivered to the Funds on the next business day. The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Funds benefit from a borrower default indemnity provided by BlackRock. BlackRock’s indemnity allows for full replacement of securities lent. Any securities lending cash collateral may be reinvested in certain short-term instruments either directly on behalf of a fund or through one or more joint accounts or money market funds, including those managed by BFA or its affiliates. Each Fund could suffer a loss if the value of an investment purchased with cash collateral falls below the value of the cash collateral received.

As of February 28, 2013, any securities on loan were collateralized by cash. The cash collateral received was invested in money market funds managed by BFA. The value of any securities on loan as of February 28, 2013 and the value of the related collateral are disclosed in the statements of assets and liabilities. Securities lending income, as disclosed in the statements of operations, represents the income earned from the investment of the cash collateral, net of fees and other payments to and from borrowers, and less the fees paid to BTC as securities lending agent.

 

6. 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.

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

 

54    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

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Notes to Financial Statements (Unaudited) (Continued)

iSHARES®, INC.

 

As of August 31, 2012, the Funds’ fiscal year-end, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:

 

iShares MSCI Index Fund    Non-
Expiring		  

All Country World Minimum Volatility

    $ 1,876,800   

Emerging Markets EMEA

      55,073   

World

      19,493   

The Funds may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” The Funds may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.

As of February 28, 2013, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

 

iShares MSCI Index Fund    Tax Cost      Gross
Unrealized
Appreciation		      Gross
Unrealized
Depreciation		     Net Unrealized
Appreciation
(Depreciation)		  

All Country World Minimum Volatility

    $ 725,611,301       $ 71,773,437       $ (8,340,087 )    $ 63,433,350   

Emerging Markets EMEA

      5,594,325         336,733         (534,038 )      (197,305 ) 

Frontier 100

      52,688,016         2,493,302         (642,263 )      1,851,039   

World

      5,040,960         955,059         (148,302 )      806,757   

Management has reviewed the tax positions as of February 28, 2013, inclusive of the open tax return years, and has determined that no provision for income tax is required in the Funds’ financial statements.

 

7. LINE OF CREDIT

The Funds, along with certain other iShares funds, are parties to a $125 million credit agreement with State Street Bank and Trust Company, which expires October 30, 2013. The credit agreement was established to facilitate the funding of purchases of securities in India. The credit agreement has the following terms: a commitment fee of 0.08% per annum on the unused portion of the credit agreement and interest at a rate equal to the higher of (a) the one-month LIBOR plus 1.00% per annum or (b) the U.S. Federal Funds rate plus 1.00% per annum on amounts borrowed. The commitment fee is allocated to each fund participating in the credit agreement based on each fund’s pro-rata share of the aggregate average daily value of assets invested in local Indian securities.

For the period ended February 28, 2013, the iShares MSCI Frontier 100 Index Fund’s maximum amount borrowed, the average borrowings and the average interest rate under the credit agreement were $255,000, $15,233 and 1.20%, respectively.

The iShares MSCI All Country World Minimum Volatility Index Fund, iShares MSCI Emerging Markets EMEA Index Fund and iShares MSCI World Index Fund did not borrow under the credit agreement during the period ended February 28, 2013.

 

NOTES TO FINANCIAL STATEMENTS

      55   

Table of Contents

Notes to Financial Statements (Unaudited) (Continued)

iSHARES®, INC.

 

8. 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.

 

56    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Board Review and Approval of Investment Advisory

Contract (Unaudited)

iSHARES®, INC.

 

iShares MSCI Frontier 100 Index 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 Investment Advisory Contract between the Company and BFA (the “Advisory Contract”) on behalf of the Fund. The Independent Directors requested, and BFA provided, such information as the Independent Directors, with advice from independent counsel, deemed reasonably necessary to evaluate the terms of the proposed Advisory Contract.

At a meeting held on June 20-21, 2012, the Board, including a majority of the Independent Directors, approved the selection of BFA and the Advisory Contract for the Fund, 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 Fund, the Board, including the Independent Directors, considered the following factors, no one of which was controlling, and made the following conclusions:

Expenses of the Fund — The Board reviewed statistical information prepared by Lipper Inc. (“Lipper”), an independent provider of investment company data, regarding the expense ratio components, including any proposed advisory fees, waivers/reimbursements, and gross and net total expenses of the Fund in comparison with the same information for other registered investment companies objectively selected by Lipper as comprising the Fund’s 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 their size, sponsor, inception date, or other differentiating factors, but that 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 an index similar to that tracked by the Fund, 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 and funds sponsored by “at cost” service providers), as applicable. In support of its review of the statistical information, the Board was provided with a detailed description of the methodology used by Lipper to determine the applicable Lipper Groups and to prepare this information. The Board also received a detailed explanation from BFA regarding its rationale for including funds that had been excluded from Lipper’s consideration due to Lipper’s methodology parameters, as well as information showing the effect of including these additional funds in the analysis. 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 Fund.

The Board also noted that the proposed investment advisory fees and overall expenses for the Fund 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 Fund supported the Board’s approval of the Advisory Contract.

Nature, Extent and Quality of Services to be Provided by BFA — The Board reviewed the scope of services to be provided by BFA under the Advisory Contract. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting iShares funds and their shareholders. The Board noted that BFA became an indirect wholly-owned subsidiary of BlackRock in December 2009. The Board acknowledged that additional resources to support iShares funds and their shareholders have been added or enhanced since then, including, in such areas as investor education, product management, customized portfolio consulting support, and capital markets support. The Board considered representations by BFA, BTC, and BlackRock that the scope and quality of services to be provided to the Fund would

 

BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT

      57   

Table of Contents

Board Review and Approval of Investment Advisory

Contract (Unaudited) (Continued)

iSHARES®, INC.

 

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. In that regard, 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 Fund. 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 to the Fund under the Advisory Contract supported the Board’s approval of the Advisory Contract.

Costs of Services to be Provided to the Fund and Profits to be Realized by BFA and Affiliates — The Board did not consider the profitability of the Fund 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 Fund 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 following the Fund’s launch 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 Fund 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 Fund’s assets, noting that the issue of economies of scale with respect to the iShares funds that are in operation was focused on extensively the Board during its meetings and addressed by management. The Board reviewed information provided by BFA regarding scale benefits shared with the iShares funds through breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board received information regarding BFA’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished between fixed and variable costs, and explained how the nature of such costs may impact the existence of scale benefits. The Board noted that the Advisory Contract for the Fund did not provide for any breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that should material economies of scale exist in the future, a breakpoint structure for the Fund may be appropriate. Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider this issue at least annually following an initial two-year period, concluded that the investment advisory fee rate incorporates potential economies of scale 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 received and considered information regarding the investment advisory/management fee rates 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 (including sub-advised funds), collective trust funds and institutional separate accounts (together, the “Other Accounts”). The Board noted that BFA and its affiliates do not manage Other Accounts with the same investment objective and strategy as the Fund. The Board further noted that BFA provided the Board with detailed information regarding how Other Accounts (particularly institutional clients) generally differ from the Fund, including in terms of the different, generally more extensive services to be provided, as well as other significant differences in the approach of BFA and its affiliates to the Fund, 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 risks of managing and providing other services to the Fund, as a

 

58    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Board Review and Approval of Investment Advisory

Contract (Unaudited) (Continued)

iSHARES®, INC.

 

publicly traded exchange traded fund, as compared to Other Accounts that are institutional clients in light of differing regulatory requirements and client-imposed mandates. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund expenses to be borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund was generally higher than the investment advisory/management fee rates for the 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 ancillary revenue to be received by BFA and/or its affiliates in connection with the services to be provided to the Fund by BFA since the proposed relationship had not yet commenced. However, the Board noted that BFA generally 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 Fund. 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 Fund 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 Fund’s securities lending agent, and its affiliates, in the event of any loaning of portfolio securities of the Fund. The Board further noted that any portfolio transactions on behalf of the Fund placed through a BFA affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates, will be 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 Fund’s shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the Advisory Contract.

Based on the considerations described above, the Board determined that the investment advisory fee rate under the Advisory Contract does not constitute a fee that is 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 Fund and its shareholders to approve the Advisory Contract.

 

BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT

      59   

Table of Contents

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 MSCI Index 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		  

All Country World
Minimum Volatility

    $ 0.70619       $ —       $ 0.10712       $ 0.81331         87 %      —   %      13 %      100 % 

World

      0.69853         —         0.07005         0.76858         91        —          9        100   

 

60    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Notes:

 

 

NOTES

      61   

Table of Contents

Notes:

 

 

62    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents
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 MSCI Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.

A description of the policies that the Funds use 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.

©2013 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.

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iS-SAR-811-0213

Table of Contents

FEBRUARY 28, 2013

 

 

2013 SEMI-ANNUAL REPORT (UNAUDITED)

 

     LOGO

 

iShares, Inc.

 

Ø    

iShares MSCI Global Agriculture Producers Fund  |  VEGI  |  NYSE Arca

Ø    

iShares MSCI Global Energy Producers Fund  |  FILL  |  NYSE Arca

Ø    

iShares MSCI Global Gold Miners Fund  |  RING  |  NYSE Arca

Ø    

iShares MSCI Global Select Metals & Mining Producers Fund  |  PICK  |  NYSE Arca

Ø    

iShares MSCI Global Silver Miners Fund  |  SLVP  |  NYSE Arca

Table of Contents

Table of Contents

 

 

Fund Performance Overviews

      5   

Shareholder Expenses

      10   

Schedules of Investments

      12   

iShares MSCI Global Agriculture Producers Fund

      12   

iShares MSCI Global Energy Producers Fund

      15   

iShares MSCI Global Gold Miners Fund

      20   

iShares MSCI Global Select Metals & Mining Producers Fund

      22   

iShares MSCI Global Silver Miners Fund

      27   

Financial Statements

      28   

Financial Highlights

      35   

Notes to Financial Statements

      40   

Supplemental Information

      49   

 

 

 

 

 

 

 

 

 

 

 

Table of Contents

Fund Performance Overview

iSHARES® MSCI GLOBAL AGRICULTURE PRODUCERS FUND

Performance as of February 28, 2013

 

Average Annual Total Returns   Cumulative Total Returns
Year Ended 2/28/13   Inception to 2/28/13   Inception to 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
9.07%   9.24%   9.25%   11.48%   11.97%   11.67%   12.44%   12.97%   12.71%

Total returns for the period since inception are calculated from the inception date of the Fund (1/31/12). “Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

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 (2/2/12), 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 MSCI Global Agriculture Producers Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI ACWI Select Agriculture Producers Investable Market Index (the “Index”). The Index is designed to measure the combined performance of equity securities of companies primarily engaged in the business of agriculture in both developed and emerging markets. 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 February 28, 2013, the total return for the Fund was 11.36%, net of fees, while the total return for the Index was 11.42%.

 

PORTFOLIO ALLOCATION

As of 2/28/13

 

Sector/Investment Type

    Percentage of
Net Assets

Chemicals

      54.89 % 

Agriculture

      15.71   

Machinery

      12.84   

Food

      10.64   

Auto Manufacturers

      2.61   

Investment Companies

      0.78   

Other*

      2.36   

Short-Term and Other Net Assets

      0.17   
  

 

 

  

TOTAL

      100.00 % 
  

 

 

  

 

  * Other includes sectors which individually represent less than 1% of net assets.

TEN LARGEST FUND HOLDINGS

As of 2/28/13

 

Security    Percentage of
Net Assets

Monsanto Co.

      13.06 % 

Syngenta AG Registered (Switzerland)

      9.51   

Potash Corp. of Saskatchewan Inc. (Canada)

      8.33   

Deere & Co.

      7.78   

Archer-Daniels-Midland Co.

      5.02   

Mosaic Co. (The)

      4.23   

Agrium Inc. (Canada)

      3.78   

Kubota Corp. (Japan)

      3.16   

CF Industries Holdings Inc.

      3.00   

Fiat Industrial SpA (Italy)

      2.61   
  

 

 

  

TOTAL

      60.48 % 
  

 

 

  
 

 

FUND PERFORMANCE OVERVIEWS

      5   

Table of Contents

Fund Performance Overview

iSHARES® MSCI GLOBAL ENERGY PRODUCERS FUND

Performance as of February 28, 2013

 

Average Annual Total Returns   Cumulative Total Returns
Year Ended 2/28/13   Inception to 2/28/13   Inception to 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
(5.74)%   (6.39)%   (5.79)%   (0.17)%   (0.50)%   (0.18)%   (0.18)%   (0.54)%   (0.19)%

Total returns for the period since inception are calculated from the inception date of the Fund (1/31/12). “Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

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 (2/2/12), 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 MSCI Global Energy Producers Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI ACWI Select Energy Producers Investable Market Index (the “Index”). The Index is designed to measure the combined performance of equity securities of companies primarily engaged in the business of energy exploration and production in both developed and emerging markets. 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 February 28, 2013, the total return for the Fund was 3.73%, net of fees, while the total return for the Index was 3.71%.

 

PORTFOLIO ALLOCATION

As of 2/28/13

 

Sector    Percentage of
Net Assets

Oil & Gas

      97.20 % 

Coal

      2.12   

Mining

      0.49   

Chemicals

      0.06   

Energy — Alternate Sources

      0.06   

Transportation

      0.01   

Short-Term and Other Net Assets

      0.06   
  

 

 

  

TOTAL

      100.00 % 
  

 

 

  

TEN LARGEST FUND HOLDINGS

As of 2/28/13

 

Security    Percentage of
Net Assets

Exxon Mobil Corp.

      15.49 % 

Chevron Corp.

      8.67   

BP PLC (United Kingdom)

      4.91   

Royal Dutch Shell PLC Class A (United Kingdom)

      4.47   

Total SA (France)

      4.09   

Royal Dutch Shell PLC Class B (United Kingdom)

      3.58   

ConocoPhillips

      2.59   

Occidental Petroleum Corp.

      2.56   

BG Group PLC (United Kingdom)

      2.29   

Eni SpA (Italy)

      2.22   
  

 

 

  

TOTAL

      50.87 % 
  

 

 

  
 

 

6    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Fund Performance Overview

iSHARES® MSCI GLOBAL GOLD MINERS FUND

Performance as of February 28, 2013

 

Average Annual Total Returns   Cumulative Total Returns
Year Ended 2/28/13   Inception to 2/28/13   Inception to 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
(34.94)%   (34.68)%   (34.84)%   (32.88)%   (33.11)%   (32.66)%   (34.97)%   (35.21)%   (34.84)%

Total returns for the period since inception are calculated from the inception date of the Fund (1/31/12). “Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

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 (2/2/12), 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 MSCI Global Gold Miners Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI ACWI Select Gold Miners Investable Market Index (the “Index”). The Index is designed to measure the combined performance of equity securities of companies primarily engaged in the business of gold mining in both developed and emerging markets. 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 February 28, 2013, the total return for the Fund was -19.26%, net of fees, while the total return for the Index was -19.22%.

 

PORTFOLIO ALLOCATION

As of 2/28/13

 

Sector    Percentage of
Net Assets

Mining

      99.81 % 

Short-Term and Other Net Assets

      0.19   
  

 

 

  

TOTAL

      100.00 % 
  

 

 

  

TEN LARGEST FUND HOLDINGS

As of 2/28/13

 

Security    Percentage of
Net Assets

Barrick Gold Corp. (Canada)

      15.08 % 

Goldcorp Inc. (Canada)

      12.93   

Newmont Mining Corp.

      9.37   

Newcrest Mining Ltd. (Australia)

      7.95   

Yamana Gold Inc. (Canada)

      4.59   

Kinross Gold Corp. (Canada)

      4.49   

AngloGold Ashanti Ltd. (South Africa)

      4.22   

Randgold Resources Ltd. (United Kingdom)

      4.14   

Agnico-Eagle Mines Ltd. (Canada)

      4.10   

Eldorado Gold Corp. (Canada)

      3.83   
  

 

 

  

TOTAL

      70.70 % 
  

 

 

  
 

 

FUND PERFORMANCE OVERVIEWS

      7   

Table of Contents

Fund Performance Overview

iSHARES® MSCI GLOBAL SELECT METALS & MINING PRODUCERS FUND

Performance as of February 28, 2013

 

Average Annual Total Returns   Cumulative Total Returns
Year Ended 2/28/13   Inception to 2/28/13   Inception to 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
(13.89)%   (15.23)%   (14.10)%   (11.67)%   (12.37)%   (11.78)%   (12.53)%   (13.28)%   (12.70)%

Total returns for the period since inception are calculated from the inception date of the Fund (1/31/12). “Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

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 (2/2/12), 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 MSCI Global Select Metals & Mining Producers Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI ACWI Select Metals & Mining Producers Ex Gold & Silver Investable Market Index (the “Index”). The Index is designed to measure the combined performance of equity securities of companies primarily involved in the extraction and production of diversified metals, aluminum, steel, and precious metals and minerals, excluding gold and silver, in both developed and emerging markets. 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 February 28, 2013, the total return for the Fund was 13.24%, net of fees, while the total return for the Index was 13.26%.

 

PORTFOLIO ALLOCATION

As of 2/28/13

 

Sector    Percentage of
Net Assets

Mining

      66.65 % 

Iron & Steel

      29.50   

Metal Fabricate & Hardware

      1.57   

Other*

      2.15   

Short-Term and Other Net Assets

      0.13   
  

 

 

  

TOTAL

      100.00 % 
  

 

 

  

 

  * Other includes sectors which individually represent less than 1% of net assets

TEN LARGEST FUND HOLDINGS

As of 2/28/13

 

Security    Percentage of
Net Assets

BHP Billiton Ltd. (Australia)

      13.00 % 

Rio Tinto PLC (United Kingdom)

      7.67   

BHP Billiton PLC (United Kingdom)

      7.10   

Anglo American PLC (United Kingdom)

      4.32   

Vale SA Class A (Preferred) (Brazil)

      3.98   

Xstrata PLC (United Kingdom)

      3.94   

Freeport-McMoRan Copper & Gold Inc.

      3.23   

Rio Tinto Ltd. (Australia)

      3.17   

Vale SA (Brazil)

      2.60   

Glencore International PLC (United Kingdom)

      2.44   
  

 

 

  

TOTAL

      51.45 % 
  

 

 

  
 

 

8    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Fund Performance Overview

iSHARES® MSCI GLOBAL SILVER MINERS FUND

Performance as of February 28, 2013

 

Average Annual Total Returns   Cumulative Total Returns
Year Ended 2/28/13   Inception to 2/28/13   Inception to 2/28/13
NAV   MARKET   INDEX   NAV   MARKET   INDEX   NAV   MARKET   INDEX
(28.06)%   (28.02)%   (27.83)%   (24.52)%   (24.31)%   (24.19)%   (26.18)%   (25.97)%   (25.92)%

Total returns for the period since inception are calculated from the inception date of the Fund (1/31/12). “Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

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 (2/2/12), 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 MSCI Global Silver Miners Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI ACWI Select Silver Miners Investable Market Index (the “Index”). The Index is designed to measure the combined performance of equity securities of companies primarily engaged in the business of silver mining in both developed and emerging markets. 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 February 28, 2013, the total return for the Fund was -12.97%, net of fees, while the total return for the Index was -12.83%.

 

PORTFOLIO ALLOCATION

As of 2/28/13

 

Sector    Percentage of
Net Assets

Mining

      99.84 % 

Short-Term and Other Net Assets

      0.16   
  

 

 

  

TOTAL

      100.00 % 
  

 

 

  

TEN LARGEST FUND HOLDINGS

As of 2/28/13

 

Security    Percentage of
Net Assets

Silver Wheaton Corp. (Canada)

      21.80 % 

Industrias Penoles SAB de CV (Mexico)

      10.63   

Compania de Minas Buenaventura SA SP ADR (Peru)

      7.37   

Fresnillo PLC (United Kingdom)

      5.68   

Pan American Silver Corp. (Canada)

      4.77   

First Majestic Silver Corp. (Canada)

      4.52   

Coeur d’Alene Mines Corp.

      4.34   

AuRico Gold Inc. (Canada)

      4.07   

Tahoe Resources Inc. (Canada)

      4.06   

Hecla Mining Co.

      3.76   
  

 

 

  

TOTAL

      71.00 % 
  

 

 

  
 

 

FUND PERFORMANCE OVERVIEWS

      9   

Table of Contents

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 September 1, 2012 to February 28, 2013.

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 MSCI Fund    Beginning
Account Value
(9/1/12)		      Ending
Account Value
(2/28/13)		      Annualized
Expense Ratio		     Expenses Paid
During Period a		  

Global Agriculture Producers

           

Actual

    $ 1,000.00       $ 1,113.60         0.38 %    $ 1.99   

Hypothetical (5% return before expenses)

      1,000.00         1,022.90         0.38        1.91   

Global Energy Producers

           

Actual

      1,000.00         1,037.30         0.39        1.97   

Hypothetical (5% return before expenses)

      1,000.00         1,022.90         0.39        1.96   

Global Gold Miners

           

Actual

      1,000.00         807.40         0.39        1.75   

Hypothetical (5% return before expenses)

      1,000.00         1,022.90         0.39        1.96   

Global Select Metals & Mining Producers

           

Actual

      1,000.00         1,132.40         0.39        2.06   

Hypothetical (5% return before expenses)

      1,000.00         1,022.90         0.39        1.96   

 

10    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Shareholder Expenses (Unaudited) (Continued)

iSHARES®, INC.

 

iShares MSCI Fund    Beginning
Account Value
(9/1/12)		      Ending
Account Value
(2/28/13)		      Annualized
Expense Ratio		     Expenses Paid
During Period a		  

Global Silver Miners

           

Actual

    $ 1,000.00       $ 870.30         0.39 %    $ 1.81   

Hypothetical (5% return before expenses)

      1,000.00         1,022.90         0.39        1.96   

 

a 

Expenses 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 (181 days) and divided by the number of days in the year (365 days).

 

 

SHAREHOLDER EXPENSES

      11   

Table of Contents

Schedule of Investments (Unaudited)

iSHARES® MSCI GLOBAL AGRICULTURE PRODUCERS FUND

February 28, 2013

 

Security   Shares     Value  
   

COMMON STOCKS — 97.83%

  

AUSTRALIA — 2.39%

  

  

Australian Agricultural Co. Ltd.a

     7,340      $ 10,107   

GrainCorp Ltd. Class A

     7,490        94,162   

Incitec Pivot Ltd.

     55,830        184,614   

Nufarm Ltd.

     5,910        33,942   

Tassal Group Ltd.

     3,750        7,332   
   

 

 

  
      330,157   

BELGIUM — 0.13%

    

SIPEF NV

     210        17,826   
   

 

 

  
      17,826   

BRAZIL — 0.34%

    

Fertilizantes Heringer SAa

     2,000        11,633   

Sao Martinho SA

     1,500        21,168   

SLC Agricola SA

     1,500        14,703   
   

 

 

  
      47,504   

CANADA — 12.21%

    

AG Growth International Inc.

     425        14,299   

Agrium Inc.

     5,020        521,459   

Potash Corp. of Saskatchewan Inc.

     28,545        1,148,964   
   

 

 

  
      1,684,722   

CHILE — 0.20%

    

AquaChile SAa

     11,730        9,572   

Empresas Iansa SA

     89,860        6,867   

Multiexport Foods SA

     35,115        11,533   
   

 

 

  
      27,972   

CHINA — 1.33%

    

Asian Citrus Holdings Ltd.

     30,000        14,391   

China Agri-Industries Holdings Ltd.

     71,200        40,490   

China BlueChemical Ltd. Class H

     60,000        38,453   

China Green Holdings Ltd.a

     45,000        8,994   

China Modern Dairy Holdings Ltd.a

     70,000        23,469   

DaChan Food Asia Ltd.

     15,000        2,399   

First Tractor Co. Ltd. Class Ha

     20,000        19,523   

Global Bio-Chem Technology Group Co. Ltd.

     100,000        11,477   

Sinofert Holdings Ltd.b

     100,000        24,759   
   

 

 

  
      183,955   

DENMARK — 0.24%

    

Auriga Industries A/S Class Ba

     545        10,608   
Security   Shares     Value  
   

East Asiatic Co. Ltd. A/S

     390      $ 6,531   

United International Enterprises Ltd.

     90        15,781   
   

 

 

  
      32,920   

FINLAND — 0.05%

    

HKScan OYJ Class A

     1,400        7,065   
   

 

 

  
      7,065   

FRANCE — 0.22%

    

Naturex

     150        11,962   

Vilmorin & Cie

     142        17,919   
   

 

 

  
      29,881   

GERMANY — 3.10%

    

K+S AG Registered

     5,960        280,544   

KWS Saat AG

     80        30,691   

Suedzucker AG

     2,645        116,014   
   

 

 

  
      427,249   

HONG KONG — 0.05%

    

Pacific Andes International Holdings Ltd.

     120,000        6,577   
   

 

 

  
      6,577   

INDONESIA — 1.46%

    

PT Astra Agro Lestari Tbk

     12,500        23,866   

PT Bakrie Sumatera Plantations Tbk

     827,500        9,334   

PT Bisi International Tbk

     82,500        6,915   

PT BW Plantation Tbk

     47,500        6,685   

PT Charoen Pokphand Indonesia Tbk

     247,500        112,692   

PT Japfa Comfeed Indonesia Tbk

     30,000        25,301   

PT Malindo Feedmill Tbk

     25,000        7,826   

PT Sampoerna Agro Tbk

     22,500        5,122   

PT Tunas Baru Lampung Tbk

     77,500        3,970   
   

 

 

  
      201,711   

ISRAEL — 1.80%

    

Israel Chemicals Ltd.

     14,735        190,449   

Israel Corp. Ltd. (The)

     80        57,473   
   

 

 

  
      247,922   

ITALY — 2.64%

    

Fiat Industrial SpA

     29,575        360,163   

Societa per la Bonifica dei Terreni Ferraresi e Imprese Agricole SpA

     90        4,496   
   

 

 

  
      364,659   

JAPAN — 4.63%

    

Hokuto Corp.

     1,000        19,022   

Iseki & Co. Ltd.

     5,000        17,613   
 

 

12    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI GLOBAL AGRICULTURE PRODUCERS FUND

February 28, 2013

 

Security   Shares     Value  
   

Kubota Corp.

     36,000      $ 436,636   

Maruha Nichiro Holdings Inc.

     15,000        27,639   

Mitsui Sugar Co. Ltd.

     5,000        16,530   

Nippon Beet Sugar Manufacturing Co. Ltd.

     5,000        9,755   

Nippon Meat Packers Inc.

     5,000        78,474   

Sakata Seed Corp.

     2,500        33,221   
   

 

 

  
      638,890   

MALAYSIA — 3.00%

    

Felda Global Ventures Holdings Bhd

     35,500        51,576   

Genting Plantations Bhd

     7,500        20,555   

Hap Seng Plantations Holdings Bhd

     8,500        7,564   

IJM Plantations Bhd

     10,500        9,955   

IOI Corp. Bhd

     104,000        164,892   

Kim Loong Resources Bhd

     4,000        2,834   

Kuala Lumpur Kepong Bhd

     15,500        104,019   

QL Resources Bhd

     12,000        11,649   

Rimbunan Sawit Bhd

     14,000        3,284   

Sarawak Oil Palms Bhd

     5,000        8,170   

TDM Bhd

     3,000        3,281   

TH Plantations Bhd

     6,000        3,941   

Tradewinds Malaysia Bhd

     3,000        8,969   

TSH Resources Bhd

     10,000        7,054   

United Malacca Bhd

     2,500        5,695   
   

 

 

  
      413,438   

NETHERLANDS — 0.77%

    

Nutreco NV

     1,145        106,640   
   

 

 

  
      106,640   

NEW ZEALAND — 0.02%

    

PGG Wrightson Ltd.a

     9,640        3,197   
   

 

 

  
      3,197   

NORWAY — 3.59%

    

Austevoll Seafood ASA

     3,400        21,392   

Cermaq ASAa

     1,880        32,365   

Copeinca ASA

     645        6,538   

Leroey Seafood Group ASA

     635        19,533   

Marine Harvest ASAa

     101,135        106,850   

Yara International ASA

     6,435        308,608   
   

 

 

  
      495,286   

POLAND — 0.47%

    

Kernel Holding SAa

     1,850        37,938   

Zaklady Azotowe w Tarnowie-Moscicach SAa

     1,500        26,649   
   

 

 

  
      64,587   
Security   Shares     Value  
   

RUSSIA — 2.42%

    

Uralkali OJSC

     45,000      $ 334,530   
   

 

 

  
      334,530   

SINGAPORE — 2.68%

    

Bumitama Agri Ltd.a

     10,000        8,806   

First Resources Ltd.b

     10,000        15,714   

GMG Global Ltd.

     115,000        12,915   

Golden Agri-Resources Ltd.

     240,000        126,035   

Indofood Agri Resources Ltd.b

     20,000        20,036   

Wilmar International Ltd.

     65,000        186,427   
   

 

 

  
      369,933   

SOUTH AFRICA — 0.70%

    

Astral Foods Ltd.

     1,195        11,986   

Illovo Sugar Ltd.

     6,965        23,831   

Tongaat Hulett Ltd.

     3,480        53,910   

Zeder Investments Ltd.

     18,355        6,955   
   

 

 

  
      96,682   

SOUTH KOREA — 0.33%

    

Dongwon Industries Co. Ltd.

     40        10,528   

Harim Co. Ltd.a

     2,555        8,058   

Namhae Chemical Corp.

     1,850        13,019   

Nong Woo Bio Co. Ltd.

     155        3,478   

Sajo Industries Co. Ltd.a

     60        2,762   

Silla Co. Ltd.

     250        5,472   

TS Corp.

     100        2,604   
   

 

 

  
      45,921   

SPAIN — 0.06%

    

Pescanova SA

     345        7,848   
   

 

 

  
      7,848   

SWEDEN — 0.07%

    

Black Earth Farming Ltd. SDRa

     4,966        9,477   
   

 

 

  
      9,477   

SWITZERLAND — 9.51%

    

Syngenta AG Registered

     3,075        1,311,785   
   

 

 

  
      1,311,785   

TAIWAN — 0.56%

    

Sesoda Corp.

     5,000        5,612   

Sinon Corp.

     15,000        7,205   

Taiwan Fertilizer Co. Ltd.

     25,000        60,590   

Taiyen Biotech Co. Ltd.

     5,000        3,548   
   

 

 

  
      76,955   
 

 

SCHEDULES OF INVESTMENTS

      13   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI GLOBAL AGRICULTURE PRODUCERS FUND

February 28, 2013

 

Security   Shares     Value  
   

THAILAND — 0.90%

    

Charoen Pokphand Foods PCL NVDR

     102,500      $ 111,975   

GFPT PCL NVDR

     14,500        3,875   

Khon Kaen Sugar Industry PCL NVDR

     16,500        8,596   
   

 

 

  
      124,446   

TURKEY — 0.20%

    

Bagfas Bandirma Gubre Fabrikalari AS

     360        10,908   

Gubre Fabrikalari TASa

     1,590        16,001   
   

 

 

  
      26,909   

UNITED STATES — 41.76%

    

AGCO Corp.

     3,325        171,171   

Alico Inc.

     135        5,785   

American Vanguard Corp.

     735        22,807   

Archer-Daniels-Midland Co.

     21,735        692,477   

Bunge Ltd.

     4,775        353,875   

Cal-Maine Foods Inc.

     470        19,030   

CF Industries Holdings Inc.

     2,060        413,710   

Darling International Inc.a

     3,890        64,924   

Deere & Co.

     12,230        1,074,161   

Dole Food Co. Inc.a

     1,285        14,392   

Fresh Del Monte Produce Inc.

     1,335        34,830   

Ingredion Inc.

     2,530        167,486   

Intrepid Potash Inc.

     1,960        38,632   

Lindsay Corp.

     450        38,453   

Monsanto Co.

     17,840        1,802,375   

Mosaic Co. (The)

     9,980        584,229   

Pilgrim’s Pride Corp.a

     2,000        17,620   

Sanderson Farms Inc.

     645        32,721   

Scotts Miracle-Gro Co. (The) Class A

     1,415        62,699   

Smithfield Foods Inc.a

     4,805        106,863   

Titan International Inc.

     2,120        44,753   
   

 

 

  
      5,762,993   
   

 

 

  

TOTAL COMMON STOCKS

  

  

(Cost: $12,586,322)

  

     13,499,637   

INVESTMENT COMPANIES — 0.78%

  

INDIA — 0.78%

  

  

iShares S&P India Nifty 50 Index Fundc

     4,500        107,505   
   

 

 

  
      107,505   
   

 

 

  

TOTAL INVESTMENT COMPANIES

  

  

(Cost: $106,247)

  

     107,505   
Security   Shares     Value  
   

PREFERRED STOCKS — 1.22%

  

CHILE — 1.22%

  

  

Sociedad Quimica y Minera de Chile SA Series B

     3,030      $ 168,144   
   

 

 

  
      168,144   
   

 

 

  

TOTAL PREFERRED STOCKS

  

  

(Cost: $180,065)

  

     168,144   

SHORT-TERM INVESTMENTS — 0.36%

  

MONEY MARKET FUNDS — 0.36%

  

  

BlackRock Cash Funds: Institutional,
SL Agency Shares

    

0.21%c,d,e

     41,775        41,775   

BlackRock Cash Funds: Prime,
SL Agency Shares

    

0.18%c,d,e

     3,025        3,025   

BlackRock Cash Funds: Treasury,
SL Agency Shares

    

0.04%c,d

     4,932        4,932   
   

 

 

  
      49,732   
   

 

 

  

TOTAL SHORT-TERM INVESTMENTS

  

  

(Cost: $49,732)

  

     49,732   
   

 

 

  

TOTAL INVESTMENTS
IN SECURITIES — 100.19%

   

  

(Cost: $12,922,366)

  

     13,825,018   

Other Assets, Less Liabilities — (0.19)%

  

     (25,727 ) 
   

 

 

  

NET ASSETS — 100.00%

  

   $ 13,799,291   
   

 

 

  

NVDR  —  Non-Voting Depositary Receipts

SDR  —  Swedish Depositary Receipts

 

a 

Non-income earning security.

b 

All or a portion of this security represents a security on loan. See Note 5.

c 

Affiliated issuer. See Note 2.

d 

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

e 

All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

 

 

14    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited)

iSHARES® MSCI GLOBAL ENERGY PRODUCERS FUND

February 28, 2013

 

Security   Shares     Value  
   

COMMON STOCKS — 98.39%

  

AUSTRALIA — 2.05%

  

  

Aquila Resources Ltd.a,b

     266      $ 719   

Aurora Oil and Gas Ltd.a

     632        2,510   

AWE Ltd.a

     938        1,248   

Beach Energy Ltd.

     2,211        3,203   

Buru Energy Ltd.a

     324        896   

Caltex Australia Ltd.

     240        4,902   

Coalspur Mines Ltd.a

     560        413   

Cockatoo Coal Ltd.a

     1,028        116   

Drillsearch Energy Ltd.a

     812        1,164   

Energy Resources of Australia Ltd.a

     308        413   

Guildford Coal Ltd.a

     276        127   

Horizon Oil Ltd.a

     1,626        732   

Karoon Gas Australia Ltd.a

     312        2,233   

Linc Energy Ltd.a

     812        2,244   

Nexus Energy Ltd.a

     4,072        709   

Paladin Energy Ltd.a

     1,324        1,593   

Red Fork Energy Ltd.a

     1,350        1,002   

Roc Oil Co. Ltd.a

     1,350        732   

Santos Ltd.

     1,720        23,613   

Senex Energy Ltd.a

     1,285        908   

Whitehaven Coal Ltd.

     750        2,150   

Woodside Petroleum Ltd.

     1,230        47,220   
   

 

 

  
      98,847   

AUSTRIA — 0.27%

    

OMV AG

     296        12,902   
   

 

 

  
      12,902   

BRAZIL — 0.92%

    

HRT Participacoes em Petroleo SAa

     400        745   

OGX Petroleo e Gas Participacoes SAa

     2,400        3,824   

Petroleo Brasileiro SA

     5,400        39,576   

Refinaria de Petroleos Manguinhos SAa

     600        100   
   

 

 

  
      44,245   

CANADA — 10.46%

    

Advantage Oil & Gas Ltd.a

     272        847   

Angle Energy Inc.a

     108        281   

ARC Resources Ltd.

     528        13,353   

Athabasca Oil Corp.a

     600        5,918   

Bankers Petroleum Ltd.a

     422        1,260   

Baytex Energy Corp.

     214        8,966   
Security   Shares     Value  
   

Bellatrix Exploration Ltd.a

     174      $ 916   

Birchcliff Energy Ltd.a

     158        1,205   

BlackPearl Resources Inc.a

     470        1,148   

Bonavista Energy Corp.

     268        3,420   

Bonterra Energy Corp.

     30        1,426   

Cameco Corp.

     718        15,365   

Canacol Energy Ltd.a

     160        529   

Canadian Natural Resources Ltd.

     1,998        61,259   

Canadian Oil Sands Ltd.

     882        18,111   

Cenovus Energy Inc.

     1,376        44,691   

Cequence Energy Ltd.a

     200        286   

Connacher Oil and Gas Ltd.a

     736        107   

Crescent Point Energy Corp.

     660        25,198   

Crew Energy Inc.a

     180        1,129   

DeeThree Exploration Ltd.a

     168        1,062   

Denison Mines Corp.a

     538        691   

Encana Corp.

     1,348        24,323   

Enerplus Corp.

     338        4,606   

Freehold Royalties Ltd.

     150        3,138   

Husky Energy Inc.

     660        20,358   

Imperial Oil Ltd.

     552        23,024   

Ithaca Energy Inc.a

     538        1,031   

Legacy Oil & Gas Inc. Class Aa

     226        1,407   

Long Run Exploration Ltd.a

     228        916   

MEG Energy Corp.a

     240        7,774   

Nexen Inc.

     960        26,417   

Niko Resources Ltd.

     86        566   

NuVista Energy Ltd.a

     156        862   

Pace Oil & Gas Ltd.a

     78        219   

Pacific Rubiales Energy Corp.

     548        13,459   

Paramount Resources Ltd. Class Aa

     88        3,248   

Parex Resources Inc.a

     200        988   

Pengrowth Energy Corp.

     881        3,762   

Penn West Petroleum Ltd.

     858        8,363   

PetroBakken Energy Ltd.

     399        3,307   

Petrominerales Ltd.

     180        1,506   

Peyto Exploration & Development Corp.

     242        5,925   

Santonia Energy Inc.a

     126        154   

Southern Pacific Resource Corp.a

     528        529   

SouthGobi Resources Ltd.a

     200        416   

Sprott Resource Corp.

     206        856   

Suncor Energy Inc.

     2,824        85,842   

Surge Energy Inc.a

     200        613   
 

 

SCHEDULES OF INVESTMENTS

      15   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI GLOBAL ENERGY PRODUCERS FUND

February 28, 2013

 

Security   Shares     Value  
   

Tag Oil Ltd.a

     200      $ 695   

Talisman Energy Inc.

     1,932        24,337   

Tourmaline Oil Corp.a

     254        9,082   

TransGlobe Energy Corp.a

     116        916   

Trilogy Energy Corp.

     96        2,545   

Twin Butte Energy Ltd.

     600        1,296   

Uranium One Inc.a

     850        2,265   

Vermilion Energy Inc.

     194        10,071   

Whitecap Resources Inc.

     200        1,718   

Zargon Oil & Gas Ltd.

     64        450   
   

 

 

  
      504,152   

CHINA — 3.71%

    

China Coal Energy Co. Class H

     8,000        7,933   

China Qinfa Group Ltd.

     4,000        511   

China Shenhua Energy Co. Ltd. Class H

     7,000        26,538   

CNOOC Ltd.

     32,000        62,887   

Hidili Industry International Development Ltd.

     4,000        1,094   

Kunlun Energy Co. Ltd.

     8,000        16,588   

MIE Holdings Corp.

     4,000        1,155   

PetroChina Co. Ltd. Class H

     40,000        54,985   

Sino Oil And Gas Holdings Ltd.a

     50,000        1,038   

Yanzhou Coal Mining Co. Ltd. Class H

     4,000        6,200   
   

 

 

  
      178,929   

COLOMBIA — 0.53%

    

Ecopetrol SA SP ADR

     448        25,782   
   

 

 

  
      25,782   

FINLAND — 0.07%

    

Neste Oil OYJ

     210        3,166   
   

 

 

  
      3,166   

FRANCE — 4.19%

  

Esso SA Francaise

     8        576   

Etablissements Maurel et Prom

     148        2,707   

Maurel & Prom Nigeriaa

     382        1,643   

Total SA

     3,932        196,856   
   

 

 

  
      201,782   

GREECE — 0.08%

    

Hellenic Petroleum SA

     285        3,159   

Motor Oil (Hellas) Corinth Refineries SA

     64        744   
   

 

 

  
      3,903   

HONG KONG — 0.01%

    

Mongolia Energy Corp. Ltd.a

     8,000        407   
   

 

 

  
      407   
Security   Shares     Value  
   

HUNGARY — 0.12%

    

MOL Hungarian Oil and Gas PLC

     76      $ 5,841   
   

 

 

  
      5,841   

INDIA — 0.76%

    

Reliance Industries Ltd. SP GDRc

     1,206        36,421   
   

 

 

  
      36,421   

INDONESIA — 0.35%

    

PT Adaro Energy Tbk

     27,000        4,387   

PT Benakat Petroleum Energy Tbka

     29,000        462   

PT Bukit Asam (Persero) Tbk

     2,000        3,125   

PT Bumi Resources Tbk

     29,000        2,461   

PT Delta Dunia Makmur Tbka

     11,000        250   

PT Energi Mega Persada Tbka

     53,000        570   

PT Indika Energy Tbk

     3,000        435   

PT Indo Tambangraya Megah Tbk

     1,000        4,165   

PT Medco Energi Internasional Tbk

     3,000        522   

PT Resource Alam Indonesia Tbk

     1,000        277   
   

 

 

  
      16,654   

ISRAEL — 0.07%

    

Naphtha Israel Petroleum Corp. Ltd.a

     123        585   

Oil Refineries Ltd.a

     2,218        1,154   

Paz Oil Co. Ltd.a

     12        1,801   
   

 

 

  
      3,540   

ITALY — 2.26%

    

Eni SpA

     4,684        106,918   

ERG SpA

     172        1,546   

Saras SpAa

     582        662   
   

 

 

  
      109,126   

JAPAN — 1.19%

    

Cosmo Oil Co. Ltd.

     2,000        4,726   

INPEX Corp.

     4        21,374   

JX Holdings Inc.

     4,400        26,993   

Showa Shell Sekiyu K.K.

     600        4,364   
   

 

 

  
      57,457   

MALAYSIA — 0.01%

    

Petron Malaysia Refining & Marketing Bhd

     600        542   
   

 

 

  
      542   

NEW ZEALAND — 0.02%

    

New Zealand Oil & Gas Ltd.

     968        746   
   

 

 

  
      746   
 

 

16    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI GLOBAL ENERGY PRODUCERS FUND

February 28, 2013

 

Security   Shares     Value  
   

NORWAY — 1.17%

    

Det norske oljeselskap ASAa

     104      $ 1,639   

DNO International ASAa

     1,152        2,080   

Norwegian Energy Co. ASAa

     694        485   

Statoil ASA

     2,088        52,075   
   

 

 

  
      56,279   

PHILIPPINES — 0.03%

    

Philex Petroleum Corp.a

     2,000        1,653   
   

 

 

  
      1,653   

POLAND — 0.27%

    

Grupa Lotos SAa

     84        1,105   

Lubelski Wegiel Bogdanka SA

     64        2,609   

Polski Koncern Naftowy Orlen SAa

     558        9,430   
   

 

 

  
      13,144   

PORTUGAL — 0.17%

    

Galp Energia SGPS SA Class B

     526        8,128   
   

 

 

  
      8,128   

RUSSIA — 2.69%

    

LUKOIL OAO

     952        61,066   

NovaTek OAO SP GDRd

     178        20,648   

Rosneft Oil Co. OJSC

     2,350        18,738   

Surgutneftegas OJSC

     13,200        12,376   

Tatneft OAO Class S

     2,580        16,886   
   

 

 

  
      129,714   

SOUTH AFRICA — 0.10%

    

Exxaro Resources Ltd.

     262        5,018   
   

 

 

  
      5,018   

SOUTH KOREA — 0.54%

    

S-Oil Corp.

     84        7,750   

SK Innovation Co. Ltd.

     110        18,082   
   

 

 

  
      25,832   

SPAIN — 0.69%

    

Repsol SA

     1,554        33,136   
   

 

 

  
      33,136   

SWEDEN — 0.21%

    

Alliance Oil Co. Ltd. SDRa

     142        1,224   

Lundin Petroleum ABa

     394        8,980   
   

 

 

  
      10,204   

THAILAND — 0.55%

    

Bangchak Petroleum PCL NVDR

     1,000        1,302   

Banpu PCL NVDR

     300        3,943   
Security   Shares     Value  
   

Esso (Thailand) PCL NVDR

     2,200      $ 754   

IRPC PCL NVDR

     20,000        2,864   

PTT Exploration & Production PCL NVDR

     2,631        13,973   

Thai Oil PCL NVDR

     1,600        3,765   
   

 

 

  
      26,601   

TURKEY — 0.19%

    

Turkiye Petrol Rafinerileri AS

     334        9,359   
   

 

 

  
      9,359   

UNITED KINGDOM — 16.64%

    

Afren PLCa

     1,888        4,075   

Amerisur Resources PLCa

     1,274        933   

Anglo Pacific Group PLC

     212        915   

BG Group PLC

     6,238        110,361   

Borders & Southern Petroleum PLCa

     830        271   

Bowleven PLCa

     676        790   

BP PLC

     34,950        236,454   

Cairn Energy PLCa

     1,010        4,166   

EnQuest PLCa

     1,090        2,201   

Essar Energy PLCa

     568        1,161   

Falkland Oil & Gas Ltd.a

     466        212   

Faroe Petroleum PLCa

     328        682   

Gulf Keystone Petroleum Ltd.a

     1,480        4,240   

Hargreaves Services PLC

     54        700   

Heritage Oil PLCa

     340        989   

JKX Oil & Gas PLCa

     224        229   

Ophir Energy PLCa

     472        3,432   

Premier Oil PLCa

     986        5,725   

Rockhopper Exploration PLCa

     482        1,046   

Royal Dutch Shell PLC Class A

     6,546        215,622   

Royal Dutch Shell PLC Class B

     5,114        172,606   

Salamander Energy PLCa

     485        1,484   

SOCO International PLCa

     434        2,433   

Tullow Oil PLC

     1,642        30,259   

Valiant Petroleum PLCa

     92        484   

Xcite Energy Ltd.a

     258        404   
   

 

 

  
      801,874   

UNITED STATES — 48.07%

    

Abraxas Petroleum Corp.a

     126        258   

Alpha Natural Resources Inc.a

     404        3,224   

Anadarko Petroleum Corp.

     942        74,964   

Apache Corp.

     728        54,069   

Approach Resources Inc.a

     44        1,089   
 

 

SCHEDULES OF INVESTMENTS

      17   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI GLOBAL ENERGY PRODUCERS FUND

February 28, 2013

 

Security   Shares     Value  
   

Arch Coal Inc.

     372      $ 1,946   

Berry Petroleum Co. Class A

     82        3,753   

Bill Barrett Corp.a

     94        1,697   

Bonanza Creek Energy Inc.a

     46        1,556   

BPZ Resources Inc.a

     158        389   

Cabot Oil & Gas Corp.

     380        23,549   

Carrizo Oil & Gas Inc.a

     64        1,503   

Chesapeake Energy Corp.

     1,204        24,273   

Chevron Corp.

     3,566        417,757   

Cimarex Energy Co.

     154        10,366   

Clayton Williams Energy Inc.a

     12        476   

Cloud Peak Energy Inc.a

     98        1,680   

Cobalt International Energy Inc.a

     422        10,411   

Comstock Resources Inc.a

     84        1,186   

Concho Resources Inc.a

     180        16,193   

ConocoPhillips

     2,156        124,940   

CONSOL Energy Inc.

     412        13,246   

Contango Oil & Gas Co.

     44        1,705   

Continental Resources Inc.a

     82        7,216   

CVR Energy Inc.

     32        1,798   

Denbury Resources Inc.a

     728        13,191   

Devon Energy Corp.

     708        38,416   

Endeavour International Corp.a

     50        127   

Energen Corp.

     134        6,196   

Energy XXI (Bermuda) Ltd.

     122        3,627   

EOG Resources Inc.

     492        61,849   

EPL Oil & Gas Inc.a

     82        2,110   

EQT Corp.

     282        17,791   

EXCO Resources Inc.

     236        1,567   

Exxon Mobil Corp.

     8,338        746,668   

Forest Oil Corp.a

     198        1,148   

FX Energy Inc.a

     78        275   

Goodrich Petroleum Corp.a

     48        619   

Gulfport Energy Corp.a

     144        5,897   

Halcon Resources Corp.a

     377        2,677   

Harvest Natural Resources Inc.a

     50        270   

Hess Corp.

     556        36,974   

HollyFrontier Corp.

     348        19,558   

James River Coal Co.a

     50        132   

Kodiak Oil & Gas Corp.a

     564        5,020   

Laredo Petroleum Holdings Inc.a

     50        857   

Magnum Hunter Resources Corp.a

     190        735   

Marathon Oil Corp.

     1,300        43,550   
Security   Shares     Value  
   

Marathon Petroleum Corp.

     616      $ 51,054   

Matador Resources Co.a

     114        890   

McMoRan Exploration Co.a

     170        2,735   

Newfield Exploration Co.a

     244        5,641   

Noble Energy Inc.

     326        36,131   

Northern Oil and Gas Inc.a

     100        1,371   

Oasis Petroleum Inc.a

     138        5,065   

Occidental Petroleum Corp.

     1,500        123,495   

PDC Energy Inc.a

     40        1,866   

Peabody Energy Corp.

     490        10,564   

Penn Virginia Corp.

     82        334   

PetroQuest Energy Inc.a

     98        376   

Phillips 66

     1,078        67,871   

Pioneer Natural Resources Co.

     238        29,943   

Plains Exploration & Production Co.a

     218        9,891   

QEP Resources Inc.

     324        9,869   

Quicksilver Resources Inc.a

     160        298   

Range Resources Corp.

     296        22,733   

Resolute Energy Corp.a

     106        1,079   

Rex Energy Corp.a

     66        890   

Rosetta Resources Inc.a

     96        4,673   

Sanchez Energy Corp.a

     56        1,037   

SandRidge Energy Inc.a

     656        3,739   

SM Energy Co.

     116        6,714   

Solazyme Inc.a

     76        663   

Southwestern Energy Co.a

     644        22,070   

Stone Energy Corp.a

     72        1,472   

Swift Energy Co.a

     74        1,000   

Tesoro Corp.

     256        14,397   

Ultra Petroleum Corp.a

     286        4,879   

Uranium Energy Corp.a

     130        300   

VAALCO Energy Inc.a

     96        779   

Valero Energy Corp.

     988        45,043   

W&T Offshore Inc.

     58        862   

Warren Resources Inc.a

     102        267   

Western Refining Inc.

     84        3,015   

Whiting Petroleum Corp.a

     212        10,324   

WPX Energy Inc.a

     356        5,052   
   

 

 

  
      2,316,880   
   

 

 

  

TOTAL COMMON STOCKS

  

  

(Cost: $4,911,298)

  

     4,742,264   
 

 

18    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI GLOBAL ENERGY PRODUCERS FUND

February 28, 2013

 

Security   Shares     Value  

PREFERRED STOCKS — 1.55%

  

BRAZIL — 1.36%

  

  

Petroleo Brasileiro SA

     7,800      $ 65,529   
   

 

 

  
      65,529   

RUSSIA — 0.19%

    

Surgutneftegas OJSC

     12,800        9,424   
   

 

 

  
      9,424   
   

 

 

  

TOTAL PREFERRED STOCKS

  

  

(Cost: $116,862)

  

     74,953   

SHORT-TERM INVESTMENTS — 0.03%

  

MONEY MARKET FUNDS — 0.03%

  

  

BlackRock Cash Funds: Institutional,
SL Agency Shares

    

0.21%e,f,g

     707        707   

BlackRock Cash Funds: Prime,
SL Agency Shares

    

0.18%e,f,g

     51        51   

BlackRock Cash Funds: Treasury,
SL Agency Shares

    

0.04%e,f

     602        602   
   

 

 

  
      1,360   
   

 

 

  

TOTAL SHORT-TERM INVESTMENTS

  

  

(Cost: $1,360)

  

     1,360   
   

 

 

  

TOTAL INVESTMENTS IN
SECURITIES — 99.97%

   

  

(Cost: $5,029,520)

  

     4,818,577   

Other Assets, Less Liabilities — 0.03%

  

     1,371   
   

 

 

  

NET ASSETS — 100.00%

  

   $ 4,819,948   
   

 

 

  

NVDR  —  Non-Voting Depositary Receipts

SDR  —  Swedish Depositary Receipts

SP ADR  —  Sponsored American Depositary Receipts

SP GDR  —  Sponsored Global Depositary Receipts

 

a 

Non-income earning security.

b 

All or a portion of this security represents a security on loan. See Note 5.

c 

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

d 

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

e 

Affiliated issuer. See Note 2.

f 

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

g 

All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

 

 

SCHEDULES OF INVESTMENTS

      19   

Table of Contents

Schedule of Investments (Unaudited)

iSHARES® MSCI GLOBAL GOLD MINERS FUND

February 28, 2013

 

Security   Shares     Value  
   

COMMON STOCKS — 99.81%

  

AUSTRALIA — 12.19%

  

  

Focus Minerals Ltd.a

     1,713,616      $ 45,612   

Kingsgate Consolidated Ltd.

     44,464        162,962   

Kingsrose Mining Ltd.

     131,376        91,457   

Medusa Mining Ltd.

     46,032        201,696   

Newcrest Mining Ltd.

     88,320        2,048,863   

Northern Star Resources Ltd.

     79,824        76,408   

Resolute Mining Ltd.

     114,880        159,947   

Silver Lake Resources Ltd.a,b

     129,008        289,238   

Troy Resources Ltd.

     21,472        64,847   
   

 

 

  
      3,141,030   

CANADA — 54.85%

    

Agnico-Eagle Mines Ltd.

     26,256        1,056,318   

Alacer Gold Corp.a

     41,488        142,860   

Argonaut Gold Inc.a

     21,440        168,926   

AuRico Gold Inc.a

     50,528        317,013   

B2Gold Corp.a

     143,568        435,710   

Barrick Gold Corp.

     127,696        3,884,105   

Centerra Gold Inc.

     35,904        233,993   

China Gold International Resources Corp. Ltd.a

     61,232        185,236   

Eldorado Gold Corp.

     99,744        987,689   

Goldcorp Inc.

     101,680        3,329,166   

Great Basin Gold Ltd.a,c

     242,539        2   

Kinross Gold Corp.

     151,440        1,156,368   

Kirkland Lake Gold Inc.a

     18,736        111,536   

Lake Shore Gold Corp.a,b

     103,472        58,376   

Nevsun Resources Ltd.

     36,688        134,540   

OceanaGold Corp.a

     53,760        126,550   

Osisko Mining Corp.a

     68,176        395,906   

San Gold Corp.a,b

     145,088        40,222   

SEMAFO Inc.

     65,472        180,867   

Yamana Gold Inc.

     80,000        1,181,266   
   

 

 

  
      14,126,649   

CHINA — 1.22%

    

China Precious Metal Resources Holdings Co. Ltd.a,b

     1,056,000        190,642   

Lingbao Gold Co. Ltd. Class H

     320,000        123,381   
   

 

 

  
      314,023   
Security   Shares     Value  
   

PERU — 3.05%

    

Compania de Minas Buenaventura SA SP ADR

     30,624      $ 784,587   
   

 

 

  
      784,587   

SOUTH AFRICA — 10.21%

    

AngloGold Ashanti Ltd.

     44,192        1,085,555   

DRDGOLD Ltd.

     266,720        195,892   

Gold Fields Ltd.

     107,312        914,090   

Harmony Gold Mining Co. Ltd.

     68,800        434,989   
   

 

 

  
      2,630,526   

TURKEY — 0.63%

    

Koza Altin Isletmeleri AS

     6,800        161,054   
   

 

 

  
      161,054   

UNITED KINGDOM — 6.62%

    

African Barrick Gold PLC

     3,504        13,978   

Centamin PLCa,b

     254,704        207,619   

Highland Gold Mining Ltd.

     95,104        151,220   

Pan African Resources PLCa

     307,024        74,568   

Petropavlovsk PLC

     41,648        190,797   

Randgold Resources Ltd.

     12,816        1,067,055   
   

 

 

  
      1,705,237   

UNITED STATES — 11.04%

    

Allied Nevada Gold Corp.a

     16,560        303,048   

Gold Resource Corp.

     9,744        127,646   

Newmont Mining Corp.

     59,904        2,413,532   
   

 

 

  
      2,844,226   
   

 

 

  

TOTAL COMMON STOCKS

  

  

(Cost: $36,592,950)

  

     25,707,332   

SHORT-TERM INVESTMENTS — 1.30%

  

MONEY MARKET FUNDS — 1.30%

  

  

BlackRock Cash Funds: Institutional,
SL Agency Shares

    

0.21%d,e,f

     310,176        310,176   

BlackRock Cash Funds: Prime,
SL Agency Shares

    

0.18%d,e,f

     22,458        22,458   
 

 

20    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI GLOBAL GOLD MINERS FUND

February 28, 2013

 

Security   Shares     Value  

BlackRock Cash Funds: Treasury,
SL Agency Shares

    

0.04%d,e

     2,780      $ 2,780   
   

 

 

  
      335,414   
   

 

 

  

TOTAL SHORT-TERM INVESTMENTS

  

  

(Cost: $335,414)

  

     335,414   
   

 

 

  

TOTAL INVESTMENTS
IN SECURITIES — 101.11%

   

  

(Cost: $36,928,364)

  

     26,042,746   

Other Assets, Less Liabilities — (1.11)%

  

     (285,617 ) 
   

 

 

  

NET ASSETS — 100.00%

  

   $ 25,757,129   
   

 

 

  

SP ADR  —  Sponsored American Depositary Receipts

 

a 

Non-income earning security.

b 

All or a portion of this security represents a security on loan. See Note 5.

c 

Security valued using Level 3 inputs in accordance with management’s fair valuation policy. See Note 1.

d 

Affiliated issuer. See Note 2.

e 

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

f 

All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

 

 

SCHEDULES OF INVESTMENTS

      21   

Table of Contents

Schedule of Investments (Unaudited)

iSHARES® MSCI GLOBAL SELECT METALS & MINING PRODUCERS FUND

February 28, 2013

 

Security    Shares      Value  
     

COMMON STOCKS — 94.18%

  

AUSTRALIA — 19.87%

  

   

Alumina Ltd.a

      634,256       $ 801,910   

Aquarius Platinum Ltd.a

      117,824         109,766   

Arrium Ltd.

      349,664         429,562   

Atlas Iron Ltd.

      216,048         324,027   

Bathurst Resources Ltd.a

      157,136         54,695   

BC Iron Ltd.

      14,000         58,620   

BHP Billiton Ltd.

      819,728         31,109,015   

BlueScope Steel Ltd.a

      144,144         671,432   

Cudeco Ltd.a

      28,672         109,780   

Fortescue Metals Group Ltd.

      356,720         1,723,707   

Gindalbie Metals Ltd.a,b

      293,216         73,544   

Grange Resources Ltd.

      133,504         36,902   

Iluka Resources Ltd.

      109,088         1,174,861   

Imdex Ltd.

      52,080         85,307   

Independence Group NL

      58,576         268,053   

Indophil Resources NLa

      224,560         78,164   

Ivanhoe Australia Ltd.a

      96,656         38,096   

Jupiter Mines Ltd.a

      75,132         8,076   

Kagara Ltd.a,c

      1,161         —   

Lynas Corp. Ltd.a,b

      498,512         316,418   

Metals X Ltd.a

      178,192         27,364   

Mincor Resources NL

      46,592         46,268   

Mineral Deposits Ltd.a

      20,832         88,506   

Mirabela Nickel Ltd.a

      174,496         66,097   

Mount Gibson Iron Ltd.

      173,376         130,458   

Northern Iron Ltd.a

      75,936         39,258   

OM Holdings Ltd.a

      93,184         31,958   

OZ Minerals Ltd.

      78,960         514,113   

PanAust Ltd.

      122,528         346,209   

Panoramic Resources Ltd.

      67,200         30,958   

Perilya Ltd.a

      88,032         26,136   

Rex Minerals Ltd.a

      45,136         25,645   

Rio Tinto Ltd.

      110,432         7,580,321   

Sandfire Resources NLa,b

      23,296         163,368   

Sims Metal Management Ltd.

      46,704         520,686   

Sundance Resources Ltd.a

      648,459         199,158   

Tiger Resources Ltd.a

      170,800         55,080   

Western Areas NL

      33,712         137,706   

Western Desert Resources Ltd.a

      50,848         42,165   
     

 

 

  
        47,543,389   
Security    Shares      Value  
     

AUSTRIA — 0.45%

      

AMAG Austria Metall AGd

      3,696       $ 115,725   

Voestalpine AG

      28,560         965,559   
     

 

 

  
        1,081,284   

BELGIUM — 0.21%

      

Bekaert NV

      10,304         280,667   

Nyrstar NVa

      39,536         226,598   
     

 

 

  
        507,265   

BRAZIL — 3.10%

      

Companhia Siderurgica Nacional SA

      190,400         963,027   

MMX Mineracao e Metalicos SAa

      56,000         94,603   

Paranapanema SAa

      56,000         148,703   

Vale SA

      324,800         6,209,822   
     

 

 

  
        7,416,155   

CANADA — 4.82%

      

Augusta Resource Corp.a

      25,984         69,759   

Capstone Mining Corp.a

      73,248         166,724   

Copper Mountain Mining Corp.a

      25,760         80,684   

Dundee Precious Metals Inc.a

      24,304         186,763   

Eastern Platinum Ltd.a

      241,024         45,717   

First Quantum Minerals Ltd.

      120,736         2,256,056   

Harry Winston Diamond Corp.a

      18,144         285,031   

HudBay Minerals Inc.

      43,568         419,978   

Imperial Metals Corp.a

      11,872         160,749   

Inmet Mining Corp.

      13,440         887,677   

Lundin Mining Corp.a

      133,168         604,926   

Major Drilling Group International

      22,288         198,371   

North American Palladium Ltd.a,b

      41,552         61,436   

Northern Dynasty Minerals Ltd.a

      19,488         61,797   

Orbite Aluminae Inc.a,b

      42,112         73,733   

Sabina Gold & Silver Corp.a

      35,056         62,061   

Sherritt International Corp.

      74,368         384,120   

Taseko Mines Ltd.a

      52,192         149,258   

Teck Resources Ltd. Class B

      146,272         4,543,033   

Thompson Creek Metals Co. Inc.a,b

      45,584         156,078   

Turquoise Hill Resources Ltd.a

      104,273         668,410   
     

 

 

  
        11,522,361   

CHILE — 0.31%

      

CAP SA

      20,720         745,140   
     

 

 

  
        745,140   

CHINA — 1.52%

      

Aluminum Corp. of China Ltd. Class Ha,b

      1,120,000         483,826   
 

 

22    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI GLOBAL SELECT METALS & MINING PRODUCERS FUND

February 28, 2013

 

Security    Shares      Value  
     

Angang Steel Co. Ltd. Class Ha,b

      448,000       $ 301,561   

China Kingstone Mining Holdings Ltd.a,c

      309,000         8,218   

China Metal Recycling Holdings Ltd.b,c

      132,000         120,385   

China Nickel Resources Holding Co. Ltd.

      224,000         21,086   

China Rare Earth Holdings Ltd.

      448,000         97,054   

China Vanadium Titano-Magnetite Mining Co. Ltd.

      448,000         104,564   

Chongqing Iron & Steel Co. Ltd. Class Ha

      224,000         39,573   

CITIC Dameng Holdings Ltd.

      224,000         23,397   

Fosun International Ltd.

      448,000         291,740   

Hunan Nonferrous Metal Corp. Ltd. Class Ha,b

      448,000         149,625   

Inner Mongolia Eerduosi Resourses Co. Ltd. Class B

      79,800         86,264   

Jiangxi Copper Co. Ltd. Class H

      336,000         805,029   

MMG Ltd.a

      448,000         198,152   

Newton Resources Ltd.a

      448,000         47,949   

North Mining Shares Co. Ltd.a

      2,240,000         132,872   

Shougang Concord International Enterprises Co. Ltd.a,b

      1,344,000         86,655   

Shougang Fushan Resources Group Ltd.

      896,000         395,149   

Tiangong International Co. Ltd.

      448,000         131,139   

Winsway Coking Coal Holding Ltd.b

      448,000         64,703   

Xinjiang Xinxin Mining Industry Co. Ltd. Class Hb

      224,000         50,260   
     

 

 

  
        3,639,201   

FINLAND — 0.15%

      

Outokumpu OYJa,b

      242,592         212,492   

Rautaruukki OYJb

      22,064         146,535   
     

 

 

  
        359,027   

FRANCE — 1.68%

      

Aperam

      12,992         172,483   

ArcelorMittal

      255,808         3,850,969   
     

 

 

  
        4,023,452   

GERMANY — 1.41%

      

Aurubis AG

      8,960         629,503   

Salzgitter AG

      10,640         508,348   
Security    Shares      Value  
     

ThyssenKrupp AGa

      98,560       $ 2,225,926   
     

 

 

  
        3,363,777   

GREECE — 0.13%

      

Mytilineos Holdings SAa

      22,550         150,352   

Viohalco Hellenic Copper and Aluminum Industry SAa

      25,080         149,187   
     

 

 

  
        299,539   

HONG KONG — 0.07%

      

CST Mining Group Ltd.a

      6,272,000         99,481   

IRC Ltd.a,b

      448,000         61,814   
     

 

 

  
        161,295   

INDIA — 0.96%

      

Sterlite Industries (India) Ltd. SP ADR

      158,928         1,120,442   

Tata Steel Ltd. SP GDRe

      182,560         1,182,989   
     

 

 

  
        2,303,431   

INDONESIA — 0.16%

      

PT Aneka Tambang (Persero) Tbk

      1,008,000         134,560   

PT Borneo Lumbung Energi & Metal Tbka

      1,176,000         59,022   

PT Krakatau Steel (Persero) Tbk

      1,288,000         89,301   

PT Timah (Persero) Tbk

      616,000         93,705   
     

 

 

  
        376,588   

ITALY — 0.03%

      

Intek Group SpAa

      177,856         81,498   
     

 

 

  
        81,498   

JAPAN — 6.70%

      

Asahi Holdings Inc.

      11,200         220,455   

Dowa Holdings Co. Ltd.

      112,000         827,921   

JFE Holdings Inc.

      134,400         2,894,568   

Kobe Steel Ltd.a

      784,000         1,062,215   

Kyoei Steel Ltd.

      11,200         203,824   

Maruichi Steel Tube Ltd.

      11,200         275,205   

Mitsubishi Materials Corp.

      336,000         1,027,011   

Mitsui Mining & Smelting Co. Ltd.

      112,000         277,997   

Neturen Co. Ltd.

      11,200         90,076   

Nippon Coke & Engineering Co. Ltd.

      112,000         146,889   

Nippon Light Metal Holdings Co. Ltd.a

      190,400         220,819   

Nippon Steel & Sumitomo Metal Corp.

      1,996,400         5,431,350   

Nisshin Steel Holdings Co. Ltd.a

      22,400         172,868   

OSAKA Titanium technologies Co. Ltd.b

      11,200         225,190   

Sumitomo Light Metal Industries Ltd.

      224,000         220,941   
 

 

SCHEDULES OF INVESTMENTS

      23   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI GLOBAL SELECT METALS & MINING PRODUCERS FUND

February 28, 2013

 

Security    Shares      Value  
     

Sumitomo Metal Mining Co. Ltd.

      112,000       $ 1,773,596   

Toho Titanium Co. Ltd.

      11,200         96,631   

Tokyo Steel Manufacturing Co. Ltd.

      56,000         277,390   

TOPY Industries Ltd.

      112,000         258,574   

Yamato Kogyo Co. Ltd.

      11,200         322,064   
     

 

 

  
        16,025,584   

MALAYSIA — 0.08%

      

Ann Joo Resources Bhd

      112,000         45,300   

CSC Steel Holdings Bhd

      112,000         43,488   

Kinsteel Bhda

      336,000         32,616   

Lion Industries Corp. Bhd

      156,800         47,692   

Press Metal Bhd

      56,000         32,254   
     

 

 

  
        201,350   

MEXICO — 2.06%

      

Compania Minera Autlan SAB de CV Series B

      22,400         19,669   

Grupo Mexico SAB de CV Series B

      963,200         3,782,561   

Grupo Simec SAB de CV Series Ba

      22,400         95,522   

Industrias CH SAB de CV Series Ba,b

      44,800         365,540   

Minera Frisco SAB de CV Series A1a

      156,800         662,150   
     

 

 

  
        4,925,442   

NETHERLANDS — 0.03%

      

AMG Advanced Metallurgical Group NVa

      8,960         75,051   
     

 

 

  
        75,051   

NORWAY — 0.44%

      

Norsk Hydro ASA

      238,000         1,056,539   
     

 

 

  
        1,056,539   

PERU — 0.93%

      

Southern Copper Corp.

      58,688         2,217,820   
     

 

 

  
        2,217,820   

PHILIPPINES — 0.09%

      

Atlas Consolidated Mining & Development Corp.a

      224,000         118,446   

Nickel Asia Corp.

      201,600         105,113   
     

 

 

  
        223,559   

POLAND — 0.98%

      

Alchemia SAa

      28,000         40,308   

Impexmetal SAa

      9,408         9,483   

Jastrzebska Spolka Weglowa SA

      9,632         288,243   

KGHM Polska Miedz SA

      35,280         2,008,189   
     

 

 

  
        2,346,223   
Security    Shares      Value  
     

RUSSIA — 1.37%

      

Belon OJSCa

      67,200       $ 13,505   

Mechel OAO SP ADR

      37,184         204,140   

MMC Norilsk Nickel OJSC

      12,208         2,155,762   

Novolipetsk Steel OJSC SP GDRe

      17,472         335,288   

Raspadskaya OAOa

      33,600         69,631   

Severstal OAO

      44,800         499,345   
     

 

 

  
        3,277,671   

SINGAPORE — 0.06%

      

Midas Holdings Ltd.

      336,000         141,159   
     

 

 

  
        141,159   

SOUTH AFRICA — 2.42%

      

African Rainbow Minerals Ltd.

      28,224         601,302   

Anglo American Platinum Ltd.

      17,248         816,967   

ArcelorMittal South Africa Ltd.a

      50,400         162,613   

Assore Ltd.

      8,624         324,384   

Impala Platinum Holdings Ltd.

      137,088         2,123,690   

Kumba Iron Ore Ltd.

      20,832         1,319,497   

Merafe Resources Ltd.a

      396,704         37,139   

Northam Platinum Ltd.

      63,504         277,295   

Palabora Mining Co. Ltd.

      3,584         41,018   

Royal Bafokeng Platinum Ltd.a

      15,344         95,080   
     

 

 

  
        5,798,985   

SOUTH KOREA — 3.54%

      

CNK International Co. Ltd.a

      11,424         52,751   

Daehan Steel Co. Ltd.

      3,360         24,669   

Dongbu Steel Co. Ltd.a

      6,720         24,421   

Dongkuk Industries Co. Ltd.

      7,504         23,597   

Dongkuk Steel Mill Co. Ltd.

      11,200         130,843   

EG Corp.

      1,232         45,738   

Hyundai BNG Steel Co. Ltd.a

      2,240         23,376   

Hyundai Hysco Co. Ltd.

      8,960         298,715   

Hyundai Steel Co.

      14,224         1,117,875   

KISCO Corp.

      1,120         29,892   

KISWIRE Ltd.

      1,120         30,513   

Korea Zinc Co. Ltd.

      2,128         738,926   

Poongsan Corp.

      4,480         120,603   

Poongsan Holdings Corp.

      1,120         24,307   

POSCO

      16,680         5,445,367   

POSCO Chemtech Co. Ltd.

      672         75,465   

POSCO M-Tech Co. Ltd.b

      6,720         59,453   

SeAH Besteel Corp.

      3,360         103,795   
 

 

24    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI GLOBAL SELECT METALS & MINING PRODUCERS FUND

February 28, 2013

 

Security    Shares      Value  
     

SeAH Holdings Corp.

      224       $ 17,542   

SeAH Steel Corp.

      560         47,010   

Shine Co. Ltd.a

      2,016         20,387   
     

 

 

  
        8,455,245   

SPAIN — 0.18%

      

Acerinox SAb

      24,864         268,499   

Tubacex SAa

      27,552         85,008   

Tubos Reunidos SA

      32,816         73,791   
     

 

 

  
        427,298   

SWEDEN — 0.77%

      

Boliden AB

      67,088         1,142,854   

Hoganas AB Class B

      5,264         265,426   

SSAB AB Class A

      49,168         382,176   

SSAB AB Class B

      8,176         55,242   
     

 

 

  
        1,845,698   

SWITZERLAND — 0.03%

      

Schmolz + Bickenbach AG Registereda

      22,512         61,032   
     

 

 

  
        61,032   

TAIWAN — 1.62%

      

China Metal Products Co. Ltd.

      112,080         129,585   

China Steel Corp.

      2,912,780         2,670,609   

Chun Yuan Steel Industrial Co. Ltd.

      112,040         43,431   

Chung Hung Steel Corp.a

      224,000         75,355   

Feng Hsin Iron & Steel Co. Ltd.

      112,000         195,183   

Gloria Material Technology Corp.

      112,097         88,230   

Hsin Kuang Steel Co. Ltd.

      112,000         80,603   

Ta Chen Stainless Pipe Co. Ltd.

      224,000         111,749   

Ton Yi Industrial Corp.

      224,000         134,401   

Tung Ho Steel Enterprise Corp.

      224,000         218,968   

YC INOX Co. Ltd.

      112,000         64,746   

Yieh Phui Enterprise Co. Ltd.

      228,440         70,919   
     

 

 

  
        3,883,779   

THAILAND — 0.12%

      

G J Steel PCL NVDRa

      26,739,900         89,882   

G Steel PCL NVDRa

      4,211,200         55,205   

STP & I PCL NVDR

      44,800         131,012   
     

 

 

  
        276,099   

TURKEY — 0.35%

      

Borusan Mannesmann Boru Sanayi ve TAS

      3,808         77,064   

Eregli Demir ve Celik Fabrikalari TAS

      242,704         313,053   
Security    Shares      Value  
     

Izmir Demir Celik Sanayi ASa

      32,144       $ 59,511   

Kardemir Karabuk Demir Celik Sanayi ve TAS Class A

      73,696         63,508   

Kardemir Karabuk Demir Celik Sanayi ve TAS Class B

      46,144         61,059   

Kardemir Karabuk Demir Celik Sanayi ve TAS Class D

      75,152         64,763   

Koza Anadolu Metal Madencilik Isletmeleri ASa

      41,888         112,018   

Park Elektrik Uretim Madencilik Sanayi ve TAS

      22,288         77,323   
     

 

 

  
        828,299   

UNITED KINGDOM — 27.66%

      

African Minerals Ltd.a,b

      64,736         278,830   

Anglo American PLC

      354,368         10,338,690   

Antofagasta PLC

      99,904         1,657,527   

BHP Billiton PLC

      535,360         16,976,258   

Eurasian Natural Resources Corp.

      70,784         363,599   

Evraz PLC

      88,368         366,063   

Ferrexpo PLC

      63,504         219,494   

Gem Diamonds Ltd.a

      29,680         73,436   

Glencore International PLC

      992,208         5,836,225   

Hill & Smith Holdings PLC

      21,952         159,279   

Kazakhmys PLC

      53,984         507,240   

London Mining PLCa

      38,864         93,947   

Lonmin PLCa

      116,704         632,429   

New World Resources PLC Class A

      24,752         99,304   

Petra Diamonds Ltd.a

      98,112         178,119   

Rio Tinto PLC

      341,376         18,349,174   

Sirius Minerals PLCa

      315,616         118,575   

Vedanta Resources PLC

      26,208         467,842   

West African Minerals Corp.a

      32,928         27,866   

Xstrata PLC

      534,688         9,435,198   
     

 

 

  
        66,179,095   

UNITED STATES — 9.88%

      

A.M. Castle & Co.a

      4,368         71,766   

AK Steel Holding Corp.

      39,200         147,000   

Alcoa Inc.

      269,360         2,294,947   

Allegheny Technologies Inc.

      26,208         798,558   

AMCOL International Corp.

      5,936         173,569   

Carpenter Technology Corp.

      11,424         539,556   

Century Aluminum Co.a

      14,896         120,807   

Cliffs Natural Resources Inc.

      39,760         1,012,290   
 

 

SCHEDULES OF INVESTMENTS

      25   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® MSCI GLOBAL SELECT METALS & MINING PRODUCERS FUND

February 28, 2013

 

Security    Shares      Value  
     

Commercial Metals Co.

      25,984       $ 423,799   

Compass Minerals International Inc.

      7,504         553,195   

Freeport-McMoRan Copper & Gold Inc.

      242,032         7,725,661   

General Moly Inc.a

      16,240         47,421   

Globe Specialty Metals Inc.

      15,232         217,665   

Haynes International Inc.

      3,472         178,808   

Horsehead Holding Corp.a

      10,416         110,097   

Kaiser Aluminum Corp.

      3,696         226,343   

Materion Corp.

      4,816         133,211   

Metals USA Holdings Corp.

      3,360         69,686   

Noranda Aluminium Holding Corp.

      11,536         54,911   

Nucor Corp.

      80,080         3,607,604   

Olympic Steel Inc.

      2,464         50,931   

Reliance Steel & Aluminum Co.

      19,264         1,282,790   

RTI International Metals Inc.a

      7,840         232,613   

Schnitzer Steel Industries Inc. Class A

      6,384         182,646   

Steel Dynamics Inc.

      53,536         817,495   

Stillwater Mining Co.a

      29,232         381,185   

SunCoke Energy Inc.a

      17,360         286,266   

United States Steel Corp.

      36,848         767,912   

Universal Stainless & Alloy Products Inc.a

      2,240         79,498   

US Silica Holdings Inc.

      4,816         118,425   

Walter Energy Inc.

      16,464         523,391   

Worthington Industries Inc.

      14,112         399,934   
     

 

 

  
        23,629,980   
     

 

 

  

TOTAL COMMON STOCKS

  

   

(Cost: $204,258,292)

  

      225,299,310   

PREFERRED STOCKS — 5.69%

  

BRAZIL — 5.69%

  

   

Bradespar SA

      56,000         822,821   

Companhia de Ferro Ligas da Bahia — Ferbasa

      11,200         66,392   

Gerdau SA

      224,000         1,863,740   

Metalurgica Gerdau SA

      78,400         830,752   

Usinas Siderurgicas de Minas Gerais SA Class A

      100,800         499,641   

Vale SA Class A

      515,200         9,524,334   
     

 

 

  
        13,607,680   
     

 

 

  

TOTAL PREFERRED STOCKS

  

   

(Cost: $12,704,842)

  

      13,607,680   
Security    Shares      Value  
     

WARRANTS — 0.00%

  

THAILAND — 0.00%

  

   

G J Steel PCL NVDR (Expires 01/30/20)a

      1,575,750       $ 1   
     

 

 

  
        1   
     

 

 

  

TOTAL WARRANTS

  

   

(Cost: $0)

  

      1   

SHORT-TERM INVESTMENTS — 1.50%

  

MONEY MARKET FUNDS — 1.50%

  

   

BlackRock Cash Funds: Institutional,
SL Agency Shares

      

0.21%f,g,h

      3,186,477         3,186,477   

BlackRock Cash Funds: Prime,
SL Agency Shares

      

0.18%f,g,h

      230,711         230,711   

BlackRock Cash Funds: Treasury,
SL Agency Shares

      

0.04%f,g

      172,304         172,304   
     

 

 

  
        3,589,492   
     

 

 

  

TOTAL SHORT-TERM INVESTMENTS

  

   

(Cost: $3,589,492)

  

      3,589,492   
     

 

 

  

TOTAL INVESTMENTS
IN SECURITIES — 101.37%

   

   

(Cost: $220,552,626)

  

      242,496,483   

Other Assets, Less Liabilities — (1.37)%

  

      (3,274,284 ) 
     

 

 

  

NET ASSETS — 100.00%

  

    $ 239,222,199   
     

 

 

  

NVDR  —  Non-Voting Depositary Receipts

SP ADR  —  Sponsored American Depositary Receipts

SP GDR  —  Sponsored Global Depositary Receipts

 

a 

Non-income earning security.

b 

All or a portion of this security represents a security on loan. See Note 5.

c 

Security valued using Level 3 inputs in accordance with management’s fair valuation policy. See Note 1.

d 

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

e 

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

f 

Affiliated issuer. See Note 2.

g 

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

h 

All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

 

 

26    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited)

iSHARES® MSCI GLOBAL SILVER MINERS FUND

February 28, 2013

 

Security    Shares      Value  
     

COMMON STOCKS — 99.84%

  

AUSTRALIA — 0.59%

  

   

Alcyone Resources Ltd.a

      359,480       $ 10,673   
     

 

 

  
        10,673   

CANADA — 56.07%

      

Alexco Resource Corp.a

      5,888         21,191   

AuRico Gold Inc.a

      11,699         73,400   

Endeavour Silver Corp.a

      5,797         33,777   

Excellon Resources Inc.a

      39,221         17,740   

First Majestic Silver Corp.a

      5,018         81,465   

Fortuna Silver Mines Inc.a

      8,216         31,967   

Great Panther Silver Ltd.a

      13,208         15,803   

MAG Silver Corp.a

      3,701         35,316   

Mandalay Resources Corp.

      21,053         21,912   

Minco Silver Corp.a

      10,200         13,394   

Pan American Silver Corp.

      5,177         86,061   

Scorpio Mining Corp.a

      21,402         15,405   

Silver Standard Resources Inc.a

      4,388         45,244   

Silver Wheaton Corp.

      12,364         393,272   

Silvercorp Metals Inc.

      9,612         35,529   

Tahoe Resources Inc.a,b

      4,827         73,200   

US Silver & Gold Inc.a

      10,673         16,922   
     

 

 

  
        1,011,598   

HONG KONG — 2.98%

      

G-Resources Group Ltd.a

      948,000         53,788   
     

 

 

  
        53,788   

MEXICO — 10.63%

      

Industrias Penoles SAB de CV

      4,155         191,723   
     

 

 

  
        191,723   

PERU — 7.37%

      

Compania de Minas Buenaventura SA SP ADR

      5,192         133,019   
     

 

 

  
        133,019   

UNITED KINGDOM — 10.18%

      

Arian Silver Corp.a

      61,210         12,311   

Fresnillo PLC

      4,351         102,570   

Hochschild Mining PLC

      9,318         54,908   

Patagonia Gold PLCa

      62,672         13,794   
     

 

 

  
        183,583   
Security    Shares      Value  
     

UNITED STATES — 12.02%

      

Coeur d’Alene Mines Corp.a

      4,119       $ 78,302   

Golden Minerals Co.a

      4,933         14,306   

Hecla Mining Co.

      14,617         67,823   

McEwen Mining Inc.a

      14,246         34,618   

Paramount Gold and Silver Corp.a

      10,823         21,754   
     

 

 

  
        216,803   
     

 

 

  

TOTAL COMMON STOCKS

  

   

(Cost: $2,387,292)

  

      1,801,187   

SHORT-TERM INVESTMENTS — 4.19%

  

MONEY MARKET FUNDS — 4.19%

  

   

BlackRock Cash Funds: Institutional,
SL Agency Shares

      

0.21%c,d,e

      70,189         70,189   

BlackRock Cash Funds: Prime,
SL Agency Shares

      

0.18%c,d,e

      5,082         5,082   

BlackRock Cash Funds: Treasury,
SL Agency Shares

      

0.04%c,d

      383         383   
     

 

 

  
        75,654   
     

 

 

  

TOTAL SHORT-TERM INVESTMENTS

  

   

(Cost: $75,654)

  

      75,654   
     

 

 

  

TOTAL INVESTMENTS
IN SECURITIES — 104.03%

   

   

(Cost: $2,462,946)

  

      1,876,841   

Other Assets, Less Liabilities — (4.03)%

  

      (72,748 ) 
     

 

 

  

NET ASSETS — 100.00%

  

    $ 1,804,093   
     

 

 

  

SP ADR  —  Sponsored American Depositary Receipts

 

a 

Non-income earning security.

b 

All or a portion of this security represents a security on loan. See Note 5.

c 

Affiliated issuer. See Note 2.

d 

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

e 

All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

 

 

SCHEDULES OF INVESTMENTS

      27   

Table of Contents

Statements of Assets and Liabilities (Unaudited)

iSHARES®, INC.

February 28, 2013

 

          
iShares MSCI
Global Agriculture
Producers Fund		     iShares MSCI
Global Energy
Producers Fund		     iShares MSCI
Global Gold
Miners Fund		  

ASSETS

       

Investments, at cost:

       

Unaffiliated

    $ 12,766,387      $ 5,028,160      $ 36,592,950   

Affiliated (Note 2)

      155,979        1,360        335,414   
  

 

 

    

 

 

    

 

 

  

Total cost of investments

    $ 12,922,366      $ 5,029,520      $ 36,928,364   
  

 

 

    

 

 

    

 

 

  

Investments in securities, at fair value (including securities on loana) (Note 1):

       

Unaffiliated

    $ 13,667,781      $ 4,817,217      $ 25,707,332   

Affiliated (Note 2)

      157,237        1,360        335,414   
  

 

 

    

 

 

    

 

 

  

Total fair value of investments

      13,825,018        4,818,577        26,042,746   

Foreign currencies, at valueb

      9,236        4,752        39,702   

Receivables:

       

Investment securities sold

      34,723        9,762        656,613   

Dividends and interest

      11,257        20,434        27,816   
  

 

 

    

 

 

    

 

 

  

Total Assets

      13,880,234        4,853,525        26,766,877   
  

 

 

    

 

 

    

 

 

  

LIABILITIES

       

Payables:

       

Investment securities purchased

      32,046        31,361        668,878   

Collateral for securities on loan (Note 5)

      44,800        758        332,634   

Investment advisory fees (Note 2)

      4,097        1,458        8,236   
  

 

 

    

 

 

    

 

 

  

Total Liabilities

      80,943        33,577        1,009,748   
  

 

 

    

 

 

    

 

 

  

NET ASSETS

    $ 13,799,291      $ 4,819,948      $ 25,757,129   
  

 

 

    

 

 

    

 

 

  

Net assets consist of:

       

Paid-in capital

    $ 12,880,660      $ 5,040,238      $ 37,790,119   

Undistributed net investment income

      16,863        16,886        26,576   

Accumulated net realized loss

      (756 )      (26,115 )      (1,173,921 ) 

Net unrealized appreciation (depreciation) on investments and translation of assets and liabilities in foreign currencies

      902,524        (211,061 )      (10,885,645 ) 
  

 

 

    

 

 

    

 

 

  

NET ASSETS

    $ 13,799,291      $ 4,819,948      $ 25,757,129   
  

 

 

    

 

 

    

 

 

  

Shares outstandingc

      500,000        200,000        1,600,000   
  

 

 

    

 

 

    

 

 

  

Net asset value per share

    $ 27.60      $ 24.10      $ 16.10   
  

 

 

    

 

 

    

 

 

  

 

a 

Securities on loan with values of $40,199, $720 and $311,193, respectively. See Note 5.

b 

Cost of foreign currencies: $9,332, $4,863 and $39,739, respectively.

c 

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

See notes to financial statements.

 

28    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Statements of Assets and Liabilities (Unaudited) (Continued)

iSHARES®, INC.

February 28, 2013

 

     

iShares MSCI

Global Select
Metals & Mining

Producers Fund

    

iShares MSCI

Global Silver
Miners Fund

  

ASSETS

     

Investments, at cost:

     

Unaffiliated

    $ 216,963,134      $ 2,387,292   

Affiliated (Note 2)

      3,589,492        75,654   
  

 

 

    

 

 

  

Total cost of investments

    $ 220,552,626      $ 2,462,946   
  

 

 

    

 

 

  

Investments in securities, at fair value (including securities on loana) (Note 1):

     

Unaffiliated

    $ 238,906,991      $ 1,801,187   

Affiliated (Note 2)

      3,589,492        75,654   
  

 

 

    

 

 

  

Total fair value of investments

      242,496,483        1,876,841   

Foreign currencies, at valueb

      123,206        713   

Receivables:

     

Investment securities sold

      635,656        21,073   

Dividends and interest

      142,454        566   
  

 

 

    

 

 

  

Total Assets

      243,397,799        1,899,193   
  

 

 

    

 

 

  

LIABILITIES

     

Payables:

     

Investment securities purchased

      546,241        19,243   

Collateral for securities on loan (Note 5)

      3,417,188        75,271   

Foreign taxes (Note 1)

      37        —   

Securities related to in-kind transactions (Note 4)

      137,860        —   

Investment advisory fees (Note 2)

      74,274        586   
  

 

 

    

 

 

  

Total Liabilities

      4,175,600        95,100   
  

 

 

    

 

 

  

NET ASSETS

    $ 239,222,199      $ 1,804,093   
  

 

 

    

 

 

  

Net assets consist of:

     

Paid-in capital

    $ 214,822,186      $ 2,516,572   

Distributions in excess of net investment income

      (368,019 )      (17,693 ) 

Undistributed net realized gain (accumulated net realized loss)

      2,827,263        (108,664 ) 

Net unrealized appreciation (depreciation) on investments and translation of assets and liabilities in foreign currencies

      21,940,769        (586,122 ) 
  

 

 

    

 

 

  

NET ASSETS

    $ 239,222,199      $ 1,804,093   
  

 

 

    

 

 

  

Shares outstandingc

      11,200,000        100,000   
  

 

 

    

 

 

  

Net asset value per share

    $ 21.36      $ 18.04   
  

 

 

    

 

 

  

 

a 

Securities on loan with values of $3,118,393 and $71,647, respectively. See Note 5.

b 

Cost of foreign currencies: $125,250 and $732, respectively.

c 

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

See notes to financial statements.

 

FINANCIAL STATEMENTS

      29   

Table of Contents

Statements of Operations (Unaudited)

iSHARES®, INC.

Six months ended February 28, 2013

 

     

    
iShares MSCI

Global Agriculture

Producers Fund

    

iShares MSCI

Global Energy

Producers Fund

    

iShares MSCI

Global Gold
Miners Fund

  

NET INVESTMENT INCOME

       

Dividends — unaffiliateda

    $ 77,678      $ 61,107      $ 252,247   

Dividends — affiliated (Note 2)

      16        —        —   

Interest — affiliated (Note 2)

      4        2        15   

Securities lending income — affiliated (Note 2)

      255        41        3,889   
  

 

 

    

 

 

    

 

 

  

Total investment income

      77,953        61,150        256,151   
  

 

 

    

 

 

    

 

 

  

EXPENSES

       

Investment advisory fees (Note 2)

      21,523        9,306        66,973   
  

 

 

    

 

 

    

 

 

  

Total expenses

      21,523        9,306        66,973   

Less investment advisory fees waived (Note 2)

      (426 )      —        —   
  

 

 

    

 

 

    

 

 

  

Net expenses

      21,097        9,306        66,973   
  

 

 

    

 

 

    

 

 

  

Net investment income

      56,856        51,844        189,178   
  

 

 

    

 

 

    

 

 

  

NET REALIZED AND UNREALIZED GAIN (LOSS)

       

Net realized gain (loss) from:

       

Investments — unaffiliated

      24,050        (1,862 )      (799,338 ) 

Investments — affiliated (Note 2)

      (776 )      —        —   

In-kind redemptions — unaffiliated

      —        —        251,258   

Foreign currency transactions

      246        439        (412 ) 
  

 

 

    

 

 

    

 

 

  

Net realized gain (loss)

      23,520        (1,423 )      (548,492 ) 
  

 

 

    

 

 

    

 

 

  

Net change in unrealized appreciation/depreciation on:

       

Investments

      986,282        125,473        (6,791,294 ) 

Translation of assets and liabilities in foreign currencies

      (127 )      (211 )      (289 ) 
  

 

 

    

 

 

    

 

 

  

Net change in unrealized appreciation/depreciation

      986,155        125,262        (6,791,583 ) 
  

 

 

    

 

 

    

 

 

  

Net realized and unrealized gain (loss)

      1,009,675        123,839        (7,340,075 ) 
  

 

 

    

 

 

    

 

 

  

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

    $ 1,066,531      $ 175,683      $ (7,150,897 ) 
  

 

 

    

 

 

    

 

 

  

 

a 

Net of foreign withholding tax of $4,377, $3,947 and $23,516, respectively.

See notes to financial statements.

 

30    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Statements of Operations (Unaudited) (Continued)

iSHARES®, INC.

Six months ended February 28, 2013

 

     

iShares MSCI

Global Select
Metals & Mining

Producers Fund

    

iShares MSCI

Global Silver
Miners Fund

  

NET INVESTMENT INCOME

     

Dividends — unaffiliateda

    $ 1,863,501      $ 3,651   

Interest — unaffiliated

      6        —   

Interest — affiliated (Note 2)

      97        1   

Securities lending income — affiliated (Note 2)

      25,990        33   
  

 

 

    

 

 

  

Total investment income

      1,889,594        3,685   
  

 

 

    

 

 

  

EXPENSES

     

Investment advisory fees (Note 2)

      443,913        4,280   
  

 

 

    

 

 

  

Total expenses

      443,913        4,280   
  

 

 

    

 

 

  

Net investment income (loss)

      1,445,681        (595 ) 
  

 

 

    

 

 

  

NET REALIZED AND UNREALIZED GAIN (LOSS)

     

Net realized gain (loss) from:

     

Investments — unaffiliated

      (266,576 )      (22,909 ) 

In-kind redemptions — unaffiliated

      3,152,196        —   

Foreign currency transactions

      (21,430 )      29   
  

 

 

    

 

 

  

Net realized gain (loss)

      2,864,190        (22,880 ) 
  

 

 

    

 

 

  

Net change in unrealized appreciation/depreciation on:

     

Investments

      22,610,693        (244,631 ) 

Translation of assets and liabilities in foreign currencies

      7,209        (26 ) 
  

 

 

    

 

 

  

Net change in unrealized appreciation/depreciation

      22,617,902        (244,657 ) 
  

 

 

    

 

 

  

Net realized and unrealized gain (loss)

      25,482,092        (267,537 ) 
  

 

 

    

 

 

  

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

    $ 26,927,773      $ (268,132 ) 
  

 

 

    

 

 

  

 

a 

Net of foreign withholding tax of $97,228 and $426, respectively.

See notes to financial statements.

 

FINANCIAL STATEMENTS

      31   

Table of Contents

Statements of Changes in Net Assets

iSHARES®, INC.

 

             
iShares MSCI
Global Agriculture
Producers Fund		     iShares MSCI
Global Energy
Producers Fund		  
      Six months
ended
February 28, 2013
(Unaudited)		    

Period from
January 31, 2012a

to

August 31, 2012

     Six months
ended
February 28, 2013
(Unaudited)		    

Period from
January 31, 2012a

to

August 31, 2012

  

INCREASE (DECREASE) IN NET ASSETS

         

OPERATIONS:

         

Net investment income

    $ 56,856      $ 55,484      $ 51,844      $ 84,128   

Net realized gain (loss)

      23,520        (25,900 )      (1,423 )      (23,866 ) 

Net change in unrealized appreciation/depreciation

      986,155        (83,631 )      125,262        (336,323 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets resulting from operations

      1,066,531        (54,047 )      175,683        (276,061 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

DISTRIBUTIONS TO SHAREHOLDERS:

         

From net investment income

      (54,229 )      (39,624 )      (56,855 )      (63,057 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions to shareholders

      (54,229 )      (39,624 )      (56,855 )      (63,057 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

CAPITAL SHARE TRANSACTIONS:

         

Proceeds from shares sold

      2,822,379        10,058,281        —        5,040,238   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase in net assets from capital share transactions

      2,822,379        10,058,281        —        5,040,238   
  

 

 

    

 

 

    

 

 

    

 

 

  

INCREASE IN NET ASSETS

      3,834,681        9,964,610        118,828        4,701,120   

NET ASSETS

         

Beginning of period

      9,964,610        —        4,701,120        —   
  

 

 

    

 

 

    

 

 

    

 

 

  

End of period

    $ 13,799,291      $ 9,964,610      $ 4,819,948      $ 4,701,120   
  

 

 

    

 

 

    

 

 

    

 

 

  

Undistributed net investment income included in net assets at end of period

    $ 16,863      $ 14,236      $ 16,886      $ 21,897   
  

 

 

    

 

 

    

 

 

    

 

 

  

SHARES ISSUED

         

Shares sold

      100,000        400,000        —        200,000   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase in shares outstanding

      100,000        400,000        —        200,000   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

a 

Commencement of operations.

See notes to financial statements.

 

32    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Statements of Changes in Net Assets (Continued)

iSHARES®, INC.

 

     iShares MSCI
Global Gold
Miners Fund		     iShares MSCI
Global Select
Metals & Mining
Producers Fund		  
      Six months
ended
February 28, 2013
(Unaudited)		    

Period from
January 31, 2012a

to

August 31, 2012

     Six months
ended
February 28, 2013
(Unaudited)		    

Period from
January 31, 2012a

to

August 31, 2012

  

INCREASE (DECREASE) IN NET ASSETS

         

OPERATIONS:

         

Net investment income

    $ 189,178      $ 170,562      $ 1,445,681      $ 49,211   

Net realized gain (loss)

      (548,492 )      (806,071 )      2,864,190        (38,123 ) 

Net change in unrealized appreciation/depreciation

      (6,791,583 )      (4,094,062 )      22,617,902        (677,133 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets resulting from operations

      (7,150,897 )      (4,729,571 )      26,927,773        (666,045 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

DISTRIBUTIONS TO SHAREHOLDERS:

         

From net investment income

      (197,530 )      (135,773 )      (1,835,810 )      (25,905 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions to shareholders

      (197,530 )      (135,773 )      (1,835,810 )      (25,905 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

CAPITAL SHARE TRANSACTIONS:

         

Proceeds from shares sold

      10,340,969        39,170,494        118,580,509        124,215,632   

Cost of shares redeemed

      (9,319,826 )      (2,220,737 )      (27,973,955 )      —   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase in net assets from capital share transactions

      1,021,143        36,949,757        90,606,554        124,215,632   
  

 

 

    

 

 

    

 

 

    

 

 

  

INCREASE (DECREASE) IN NET ASSETS

      (6,327,284 )      32,084,413        115,698,517        123,523,682   

NET ASSETS

         

Beginning of period

      32,084,413        —        123,523,682        —   
  

 

 

    

 

 

    

 

 

    

 

 

  

End of period

    $ 25,757,129      $ 32,084,413      $ 239,222,199      $ 123,523,682   
  

 

 

    

 

 

    

 

 

    

 

 

  

Undistributed (distributions in excess of) net investment income included in net assets at end of period

    $ 26,576      $ 34,928      $ (368,019 )    $ 22,110   
  

 

 

    

 

 

    

 

 

    

 

 

  

SHARES ISSUED AND REDEEMED

         

Shares sold

      500,000        1,700,000        6,000,000        6,500,000   

Shares redeemed

      (500,000 )      (100,000 )      (1,300,000 )      —   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase in shares outstanding

      —        1,600,000        4,700,000        6,500,000   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

a 

Commencement of operations.

See notes to financial statements.

 

FINANCIAL STATEMENTS

      33   

Table of Contents

Statements of Changes in Net Assets (Continued)

iSHARES®, INC.

 

         
iShares MSCI
Global Silver
Miners Fund		  
     

Six months

ended

February 28, 2013

(Unaudited)

    

Period from
January 31, 2012a

to

August 31, 2012

  

INCREASE (DECREASE) IN NET ASSETS

     

OPERATIONS:

     

Net investment income (loss)

    $ (595 )    $ 15,055   

Net realized loss

      (22,880 )      (560,995 ) 

Net change in unrealized appreciation/depreciation

      (244,657 )      (341,465 ) 
  

 

 

    

 

 

  

Net decrease in net assets resulting from operations

      (268,132 )      (887,405 ) 
  

 

 

    

 

 

  

DISTRIBUTIONS TO SHAREHOLDERS:

     

From net investment income

      (22,190 )      (14,066 ) 
  

 

 

    

 

 

  

Total distributions to shareholders

      (22,190 )      (14,066 ) 
  

 

 

    

 

 

  

CAPITAL SHARE TRANSACTIONS:

     

Proceeds from shares sold

      —        4,939,471   

Cost of shares redeemed

      —        (1,943,585 ) 
  

 

 

    

 

 

  

Net increase in net assets from capital share transactions

      —        2,995,886   
  

 

 

    

 

 

  

INCREASE (DECREASE) IN NET ASSETS

      (290,322 )      2,094,415   

NET ASSETS

     

Beginning of period

      2,094,415        —   
  

 

 

    

 

 

  

End of period

    $ 1,804,093      $ 2,094,415   
  

 

 

    

 

 

  

Undistributed (distributions in excess of) net investment income included in net assets at end of period

    $ (17,693 )    $ 5,092   
  

 

 

    

 

 

  

SHARES ISSUED AND REDEEMED

     

Shares sold

      —        200,000   

Shares redeemed

      —        (100,000 ) 
  

 

 

    

 

 

  

Net increase in shares outstanding

      —        100,000   
  

 

 

    

 

 

  

 

a 

Commencement of operations.

 

34    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Financial Highlights

iSHARES®, INC.

(For a share outstanding throughout each period)

 

iShares MSCI Global Agriculture Producers Fund

 

     

Six months

ended

Feb. 28, 2013

(Unaudited)

    

Period from
Jan. 31, 2012a

to

Aug. 31, 2012

  

Net asset value, beginning of period

    $ 24.91      $ 24.88   
  

 

 

    

 

 

  

Income from investment operations:

     

Net investment incomeb

      0.14        0.28   

Net realized and unrealized gain (loss)c

      2.69        (0.05 ) 
  

 

 

    

 

 

  

Total from investment operations

      2.83        0.23   
  

 

 

    

 

 

  

Less distributions from:

     

Net investment income

      (0.14 )      (0.20 ) 
  

 

 

    

 

 

  

Total distributions

      (0.14 )      (0.20 ) 
  

 

 

    

 

 

  

Net asset value, end of period

    $ 27.60      $ 24.91   
  

 

 

    

 

 

  

Total return

      11.36 %d      0.97 %d 
  

 

 

    

 

 

  

Ratios/Supplemental data:

     

Net assets, end of period (000s)

    $ 13,799      $ 9,965   

Ratio of expenses to average net assetse

      0.38 %      0.38 % 

Ratio of expenses to average net assets prior to waived feese

      0.39 %      0.39 % 

Ratio of net investment income to average net assetse

      1.03 %      1.93 % 

Portfolio turnover ratef

      3 %      6 % 

 

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 in Creation Units but include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the periods ended February 28, 2013 and August 31, 2012 were 3% and 6% respectively. See Note 4.

See notes to financial statements.

 

FINANCIAL HIGHLIGHTS

      35   

Table of Contents

Financial Highlights (Continued)

iSHARES®, INC.

(For a share outstanding throughout each period)

 

iShares MSCI Global Energy Producers Fund

 

     

Six months
ended

Feb. 28, 2013
(Unaudited)

    

Period from
Jan. 31, 2012a

to

Aug. 31, 2012

  

Net asset value, beginning of period

    $ 23.51      $ 24.79   
  

 

 

    

 

 

  

Income from investment operations:

     

Net investment incomeb

      0.26        0.43   

Net realized and unrealized gain (loss)c

      0.61        (1.39 ) 
  

 

 

    

 

 

  

Total from investment operations

      0.87        (0.96 ) 
  

 

 

    

 

 

  

Less distributions from:

     

Net investment income

      (0.28 )      (0.32 ) 
  

 

 

    

 

 

  

Total distributions

      (0.28 )      (0.32 ) 
  

 

 

    

 

 

  

Net asset value, end of period

    $ 24.10      $ 23.51   
  

 

 

    

 

 

  

Total return

      3.73 %d      (3.77 )%d 
  

 

 

    

 

 

  

Ratios/Supplemental data:

     

Net assets, end of period (000s)

    $ 4,820      $ 4,701   

Ratio of expenses to average net assetse

      0.39 %      0.39 % 

Ratio of net investment income to average net assetse

      2.17 %      3.16 % 

Portfolio turnover ratef

      2 %      5 % 

 

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 in Creation Units but include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the periods ended February 28, 2013 and August 31, 2012 were 2% and 5% respectively. See Note 4.

See notes to financial statements.

 

36    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Financial Highlights (Continued)

iSHARES®, INC.

(For a share outstanding throughout each period)

 

iShares MSCI Global Gold Miners Fund

 

     

Six months
ended

Feb. 28, 2013
(Unaudited)

    

Period from
Jan. 31, 2012a

to

Aug. 31, 2012

  

Net asset value, beginning of period

    $ 20.05      $ 25.00   
  

 

 

    

 

 

  

Income from investment operations:

     

Net investment incomeb

      0.11        0.15   

Net realized and unrealized lossc

      (3.96 )      (5.02 ) 
  

 

 

    

 

 

  

Total from investment operations

      (3.85 )      (4.87 ) 
  

 

 

    

 

 

  

Less distributions from:

     

Net investment income

      (0.10 )      (0.08 ) 
  

 

 

    

 

 

  

Total distributions

      (0.10 )      (0.08 ) 
  

 

 

    

 

 

  

Net asset value, end of period

    $ 16.10      $ 20.05   
  

 

 

    

 

 

  

Total return

      (19.26 )%d      (19.45 )%d 
  

 

 

    

 

 

  

Ratios/Supplemental data:

     

Net assets, end of period (000s)

    $ 25,757      $ 32,084   

Ratio of expenses to average net assetse

      0.39 %      0.39 % 

Ratio of net investment income to average net assetse

      1.10 %      1.25 % 

Portfolio turnover ratef

      10 %      11 % 

 

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.

 

FINANCIAL HIGHLIGHTS

      37   

Table of Contents

Financial Highlights (Continued)

iSHARES®, INC.

(For a share outstanding throughout each period)

 

iShares MSCI Global Select Metals & Mining Producers Fund

 

     

Six months
ended

Feb. 28, 2013
(Unaudited)

    

Period from
Jan. 31, 2012a

to

Aug. 31, 2012

  

Net asset value, beginning of period

    $ 19.00      $ 24.76   
  

 

 

    

 

 

  

Income from investment operations:

     

Net investment incomeb

      0.13        0.37   

Net realized and unrealized gain (loss)c

      2.39        (6.00 ) 
  

 

 

    

 

 

  

Total from investment operations

      2.52        (5.63 ) 
  

 

 

    

 

 

  

Less distributions from:

     

Net investment income

      (0.16 )      (0.13 ) 
  

 

 

    

 

 

  

Total distributions

      (0.16 )      (0.13 ) 
  

 

 

    

 

 

  

Net asset value, end of period

    $ 21.36      $ 19.00   
  

 

 

    

 

 

  

Total return

      13.24 %d      (22.76 )%d 
  

 

 

    

 

 

  

Ratios/Supplemental data:

     

Net assets, end of period (000s)

    $ 239,222      $ 123,524   

Ratio of expenses to average net assetse

      0.39 %      0.39 % 

Ratio of net investment income to average net assetse

      1.27 %      2.98 % 

Portfolio turnover ratef

      5 %      1 % 

 

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 in Creation Units but include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the periods ended February 28, 2013 and August 31, 2012 were 3% and 1% respectively. See Note 4.

See notes to financial statements.

 

38    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Financial Highlights (Continued)

iSHARES®, INC.

(For a share outstanding throughout each period)

 

iShares MSCI Global Silver Miners Fund

 

     

Six months

ended

Feb. 28, 2013

(Unaudited)

    

Period from
Jan. 31, 2012a

to

Aug. 31, 2012

  

Net asset value, beginning of period

    $ 20.94      $ 24.87   
  

 

 

    

 

 

  

Income from investment operations:

     

Net investment income (loss)b

      (0.01 )      0.11   

Net realized and unrealized lossc

      (2.67 )      (3.90 ) 
  

 

 

    

 

 

  

Total from investment operations

      (2.68 )      (3.79 ) 
  

 

 

    

 

 

  

Less distributions from:

     

Net investment income

      (0.22 )      (0.14 ) 
  

 

 

    

 

 

  

Total distributions

      (0.22 )      (0.14 ) 
  

 

 

    

 

 

  

Net asset value, end of period

    $ 18.04      $ 20.94   
  

 

 

    

 

 

  

Total return

      (12.97 )%d      (15.18 )%d 
  

 

 

    

 

 

  

Ratios/Supplemental data:

     

Net assets, end of period (000s)

    $ 1,804      $ 2,094   

Ratio of expenses to average net assetse

      0.39 %      0.39 % 

Ratio of net investment income (loss) to average net assetse

      (0.05 )%      0.86 % 

Portfolio turnover ratef

      4 %      9 % 

 

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.

 

FINANCIAL HIGHLIGHTS

      39   

Table of Contents

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 MSCI Fund   

Diversification

Classification

Global Agriculture Producers

    Non-diversified

Global Energy Producers

    Non-diversified

Global Gold Miners

    Non-diversified

Global Select Metals & Mining Producers

    Non-diversified

Global Silver Miners

    Non-diversified

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.

 

40    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Notes to Financial Statements (Unaudited) (Continued)

iSHARES®, INC.

 

SECURITY VALUATION

Each Fund’s investments are valued at fair value each day that the Fund’s listing exchange is open. 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 BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) provides oversight of the valuation of investments for the Funds. The investments of each Fund are valued pursuant to policies and procedures developed by the Global Valuation Committee and approved by the Board of Directors of the Company (the “Board”).

 

  •  

Equity investments traded on a recognized securities exchange are valued at that day’s last reported trade price or the official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price.

 

  •  

Exchange-traded funds and closed-end funds traded on a recognized securities exchange are valued at that day’s last reported trade price or the official closing price, as applicable, on the exchange where the fund is primarily traded. Funds traded on a recognized exchange for which there were no sales on that day are valued at the last traded price.

 

  •  

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 deemed relevant by the Global Valuation Committee, in accordance with policies approved by the Board. These factors include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other factors, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or other default rates. Valuations based on such factors are reported to the Board on a quarterly basis.

The Global Valuation Committee employs various methods for calibrating valuation approaches for investments where an active market does not exist, including regular due diligence of the Company’s pricing vendors, a regular review of key inputs and assumptions, transactional back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing or stale prices and large movements in market values, and reviews of market related activity.

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 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. The three levels of the fair value hierarchy are as follows:

 

  •  

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

 

NOTES TO FINANCIAL STATEMENTS

      41   

Table of Contents

Notes to Financial Statements (Unaudited) (Continued)

iSHARES®, INC.

 

  •  

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 (such as exchange rates, financing terms, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; 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. In accordance with the Company’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period.

The following table summarizes the value of each of the Funds’ investments according to the fair value hierarchy as of February 28, 2013. The breakdown of each Fund’s investments into major categories is disclosed in its respective schedule of investments.

 

iShares MSCI Fund and
Investment Type

 

    Investments  
   Level 1      Level 2      Level 3      Total  

Global Agriculture Producers

            

Assets:

            

Common Stocks

    $ 13,490,668       $ 8,969       $ —       $ 13,499,637   

Investment Companies

      107,505         —         —         107,505   

Preferred Stocks

      168,144         —         —         168,144   

Money Market Funds

      49,732         —         —         49,732   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 13,816,049       $ 8,969       $ —       $ 13,825,018   
  

 

 

     

 

 

     

 

 

     

 

 

  

Global Energy Producers

            

Assets:

            

Common Stocks

    $ 4,741,518       $ 746       $ —       $ 4,742,264   

Preferred Stocks

      74,953         —         —         74,953   

Money Market Funds

      1,360         —         —         1,360   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 4,817,831       $ 746       $ —       $ 4,818,577   
  

 

 

     

 

 

     

 

 

     

 

 

  

Global Gold Miners

            

Assets:

            

Common Stocks

    $ 25,707,330       $ —       $ 2       $ 25,707,332   

Money Market Funds

      335,414         —         —         335,414   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 26,042,744       $ —       $ 2       $ 26,042,746   
  

 

 

     

 

 

     

 

 

     

 

 

  
                                     

 

42    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Notes to Financial Statements (Unaudited) (Continued)

iSHARES®, INC.

 

iShares MSCI Fund and
Investment Type

 

    Investments  
   Level 1      Level 2      Level 3      Total  

Global Select Metals & Mining Producers

            

Assets:

            

Common Stocks

    $ 225,170,707       $ —       $ 128,603       $ 225,299,310   

Preferred Stocks

      13,607,680         —         —         13,607,680   

Warrants

      —         1         —         1   

Money Market Funds

      3,589,492         —         —         3,589,492   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 242,367,879       $ 1       $ 128,603       $ 242,496,483   
  

 

 

     

 

 

     

 

 

     

 

 

  

Global Silver Miners

            

Assets:

            

Common Stocks

    $ 1,801,187       $ —       $ —       $ 1,801,187   

Money Market Funds

      75,654         —         —         75,654   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 1,876,841       $ —       $ —       $ 1,876,841   
  

 

 

     

 

 

     

 

 

     

 

 

  
                                     

SECURITY TRANSACTIONS AND INCOME RECOGNITION

Security transactions are accounted for on trade date. Dividend income is recognized on the ex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities as of February 28, 2013 are reflected in dividends receivable. Non-cash dividends received in the form of stock in an elective dividend, if any, are recorded as dividend income at fair value. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. Interest income is accrued daily. Realized gains and losses on investment transactions are determined using the specific identification method.

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, stock dividends, capital gains on investments, or certain foreign currency transactions. 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 stock dividends are

 

NOTES TO FINANCIAL STATEMENTS

      43   

Table of Contents

Notes to Financial Statements (Unaudited) (Continued)

iSHARES®, INC.

 

presented as “other foreign taxes,” and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable as of February 28, 2013, 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 December 2011, the Financial Accounting Standards Board issued guidance to enhance current disclosure requirements on offsetting of certain assets and liabilities and enable financial statement users to compare financial statements prepared under U.S. GAAP and International Financial Reporting Standards (IFRS). The new disclosures are required for investments and derivative financial instruments subject to master netting agreements or similar agreements and require an entity to disclose both gross and net information about such investments and transactions eligible for offset in the statement of assets and liabilities. In addition, the standard requires disclosure of collateral received and posted in connection with master netting agreements or similar agreements. The guidance is effective for financial statements for fiscal years beginning after January 1, 2013, and interim periods within those fiscal years. Management is evaluating the impact of this guidance on the Funds’ financial statements and disclosures.

 

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.

For its investment advisory services to each Fund, BFA is entitled to an annual investment advisory fee of 0.39% based on the average daily net assets of each Fund.

BFA has contractually agreed to waive a portion of its investment advisory fees for the iShares MSCI Global Agriculture Producers and iShares MSCI Global Select Metals & Mining Producers Funds through December 31, 2014 in an amount equal to the investment advisory fees payable on the amount of each Fund’s investment in other iShares funds. The iShares MSCI Global Select Metals & Mining Producers Fund did not hold any iShares funds during the six months ended February 28, 2013.

 

44    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Notes to Financial Statements (Unaudited) (Continued)

iSHARES®, INC.

 

The U.S. Securities and Exchange Commission has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”) to serve as securities lending agent for the Funds, subject to applicable conditions. BTC is an affiliate of BFA. Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, and any fees or other payments to and from borrowers of securities. Each Fund retains 65% of securities lending income and pays a fee to BTC equal to 35% of such income. The Funds benefit from a borrower default indemnity provided by BlackRock. As securities lending agent, BTC bears all operational costs directly related to securities lending as well as the cost of borrower default indemnification. BTC is also responsible for fees and expenses incurred by each Fund as a result of the investment of cash collateral received for securities on loan in a money market fund managed by BFA or an affiliate.

For the six months ended February 28, 2013, BTC earned securities lending agent fees from the Funds as follows:

 

iShares MSCI Fund    Securities Lending
Agent Fees		  

Global Agriculture Producers

    $ 137   

Global Energy Producers

      22   

Global Gold Miners

      2,094   

Global Select Metals & Mining Producers

      13,994   

Global Silver Miners

      18   

BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the 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.

The PNC Financial Services Group, Inc. is the largest stockholder of BlackRock and is considered to be an affiliate of the Funds for 1940 Act purposes.

The iShares MSCI Global Agriculture Producers and iShares MSCI Global Select Metals & Mining Producers Funds, in order to improve their portfolio liquidity and their ability to track their underlying index, may invest in shares of other iShares funds that invest in securities in each Fund’s respective underlying index.

Investments in issuers considered to be affiliates of the Funds (excluding short-term investments) during the six months ended February 28, 2013, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

 

iShares MSCI Fund and

Name of Affiliated Issuer

    Shares Held
at Beginning
of Period		      Shares
Purchased		      Shares
Sold		     Shares Held
at End
of Period		     

Value at
End

of Period

      Dividend
Income		      Net
Realized
Gain (Loss)		  

Global Agriculture Producers

                    

iShares S&P India Nifty 50 Index Fund

      3,572         1,343         (415 )      4,500       $ 107,505       $ 16       $ (776 ) 
             

 

 

     

 

 

     

 

 

  
                                                               

Certain directors and officers of the Company are also officers of BTC and/or BFA.

 

NOTES TO FINANCIAL STATEMENTS

      45   

Table of Contents

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 six months ended February 28, 2013 were as follows:

 

iShares MSCI Fund    Purchases      Sales  

Global Agriculture Producers

    $ 525,640       $ 346,646   

Global Energy Producers

      106,359         87,269   

Global Gold Miners

      3,425,433         3,282,327   

Global Select Metals & Mining Producers

        23,802,647           9,928,863   

Global Silver Miners

      96,121         118,050   

In-kind transactions (see Note 4) for the six months ended February 28, 2013 were as follows:

 

iShares MSCI Fund    In-kind
Purchases		      In-kind
Sales		  

Global Agriculture Producers

    $ 2,648,193       $ —   

Global Gold Miners

      10,171,857         9,294,384   

Global Select Metals & Mining Producers

      100,426,024         23,808,795   

 

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 may also 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. LOANS OF PORTFOLIO SECURITIES

Each Fund may lend its investment securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current

 

46    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Notes to Financial Statements (Unaudited) (Continued)

iSHARES®, INC.

 

value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter, at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Funds and any additional required collateral is delivered to the Funds on the next business day. The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Funds benefit from a borrower default indemnity provided by BlackRock. BlackRock’s indemnity allows for full replacement of securities lent. Any securities lending cash collateral may be reinvested in certain short-term instruments either directly on behalf of a fund or through one or more joint accounts or money market funds, including those managed by BFA or its affiliates. Each Fund could suffer a loss if the value of an investment purchased with cash collateral falls below the value of the cash collateral received.

As of February 28, 2013, any securities on loan were collateralized by cash. The cash collateral received was invested in money market funds managed by BFA. The value of any securities on loan as of February 28, 2013 and the value of the related collateral are disclosed in the statements of assets and liabilities. Securities lending income, as disclosed in the statements of operations, represents the income earned from the investment of the cash collateral, net of fees and other payments to and from borrowers, and less the fees paid to BTC as securities lending agent.

 

6. 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.

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

As of August 31, 2012, the Funds’ fiscal year-end, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:

 

iShares MSCI Fund    Non-
Expiring		  

Global Agriculture Producers

    $ 20,341   

Global Energy Producers

      20,639   

Global Gold Miners

      259,179   

Global Select Metals & Mining Producers

      9,471   

Global Silver Miners

      83,082   

The Funds may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” The Funds may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.

 

NOTES TO FINANCIAL STATEMENTS

      47   

Table of Contents

Notes to Financial Statements (Unaudited) (Continued)

iSHARES®, INC.

 

As of February 28, 2013, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

 

iShares MSCI Fund    Tax Cost      Gross
Unrealized
Appreciation		      Gross
Unrealized
Depreciation		     Net Unrealized
Appreciation
(Depreciation)		  

Global Agriculture Producers

    $ 12,926,366       $ 1,169,384       $ (270,732 )    $ 898,652   

Global Energy Producers

      5,036,143         295,370         (512,936 )      (217,566 ) 

Global Gold Miners

      37,294,614         5,823         (11,257,691 )      (11,251,868 ) 

Global Select Metals & Mining Producers

      220,581,562         25,852,363         (3,937,442 )      21,914,921   

Global Silver Miners

      2,472,054         8,996         (604,209 )      (595,213 ) 

Management has reviewed the tax positions as of February 28, 2013, inclusive of the open tax return years, and has determined that no provision for income tax is required in the Funds’ financial statements.

 

7. 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.

 

48    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

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 MSCI 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		  

Global Agriculture Producers

    $ 0.12482       $ —       $ 0.01075       $ 0.13557         92 %      —   %      8 %      100 % 

Global Energy Producers

      0.26922         —         0.01506         0.28428         95        —          5        100   

Global Gold Miners

      0.10375         —         0.00021         0.10396         100        —          0 a      100   

Global Select Metals & Mining Producers

      0.11686         —         0.04418         0.16104         73        —          27        100   

Global Silver Miners

      0.11827         —         0.10363         0.22190         53        —          47        100   

 

  a   

Rounds to less than 1%.

 

SUPPLEMENTAL INFORMATION

      49   

Table of Contents

Notes:

 

 

50    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents
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 MSCI Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.

A description of the policies that the Funds use 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.

©2013 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.

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iS-SAR-812-0213

Table of Contents

FEBRUARY 28, 2013

 

 

2013 SEMI-ANNUAL REPORT (UNAUDITED)

 

     LOGO

 

iShares, Inc.

 

Ø    

iShares Core MSCI Emerging Markets ETF  |  IEMG  |  NYSE Arca

Table of Contents

Table of Contents

 

 

Fund Performance Overview

      5   

Shareholder Expenses

      6   

Schedule of Investments

      7   

Financial Statements

      30   

Financial Highlights

      33   

Notes to Financial Statements

      34   

Board Review and Approval of Investment Advisory Contract

      41   

Supplemental Information

      44   

Table of Contents

Fund Performance Overview

iSHARES® CORE MSCI EMERGING MARKETS ETF

Performance as of February 28, 2013

 

Cumulative Total Returns  
Inception to 2/28/13  
  NAV      MARKET     INDEX   
  4.90%      4.83%     4.93%   

“Cumulative Total Returns” represent the total change in value of an investment over the period indicated and are calculated from an inception date of 10/18/12.

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 (10/22/12), 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 Core MSCI Emerging Markets ETF (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI Emerging Markets Investable Market Index (the “Index”). The Index is designed to measure large-, mid- and small-cap equity market performance in the global emerging markets. 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 October 18, 2012 (inception date of the Fund) through February 28, 2013, the total return for the Fund was 4.90%, net of fees, while the total return for the Index was 4.93%.

 

PORTFOLIO ALLOCATION

As of 2/28/13

 

Sector/Investment Type    Percentage of
Net Assets

Financial

      24.18 % 

Energy

      9.45   

Basic Materials

      9.44   

Consumer Non-Cyclical

      9.40   

Communications

      9.34   

Consumer Cyclical

      8.93   

Technology

      8.85   

Industrial

      8.21   

Investment Companies

      6.45   

Utilities

      3.02   

Diversified

      2.43   

Short-Term and Other Net Assets

      0.30   
  

 

 

  

TOTAL

      100.00 % 
  

 

 

  

TEN LARGEST FUND HOLDINGS

As of 2/28/13

 

Security    Percentage of
Net  Assets

iShares MSCI India Index Fund (India)

      6.10 % 

Samsung Electronics Co. Ltd. (South Korea)

      3.57   

Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan)

      1.94   

China Mobile Ltd. (China)

      1.50   

China Construction Bank Corp. Class H (China)

      1.35   

Gazprom OAO (Russia)

      1.08   

Industrial and Commercial Bank of China Ltd. Class H (China)

      1.06   

America Movil SAB de CV Series L (Mexico)

      0.93   

Itau Unibanco Holding SA (Preferred) (Brazil)

      0.92   

Sberbank of Russia (Russia)

      0.84   
  

 

 

  

TOTAL

      19.29 % 
  

 

 

  
 

 

FUND PERFORMANCE OVERVIEW

      5   

Table of Contents

Shareholder Expenses (Unaudited)

iSHARES® CORE MSCI EMERGING MARKETS ETF

 

As a shareholder of the 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 the 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 September 1, 2012 (or commencement of operations, as applicable) to February 28, 2013.

ACTUAL EXPENSES

The first line 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 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 in the table below provides information about hypothetical account values and hypothetical expenses based on the 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 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.

 

      Beginning
Account  Value
(9/1/12) a		      Ending
Account Value
(2/28/13)		      Annualized
Expense Ratio		     Expenses Paid
During Period b		  

Actual

    $ 1,000.00       $ 1,049.00         0.05 %    $ 0.19   

Hypothetical (5% return before expenses)

      1,000.00         1,024.50         0.05        0.25   

 

a 

The beginning of the period (commencement of operations) is October 18, 2012.

b 

Actual expenses for the Fund are calculated using the 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 (133 days) and divided by the number of days in the year (365 days). Hypothetical expenses, which are based on a hypothetical half year, are calculated using the 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 (181 days) and divided by the number of days in the year (365 days).

 

 

 

6    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited)

iSHARES® CORE MSCI EMERGING MARKETS ETF

February 28, 2013

 

Security   Shares     Value  
   

COMMON STOCKS — 86.30%

  

BRAZIL — 6.14%

    

Abril Educacao SA Units

     3,100      $ 76,830   

Aliansce Shopping Centers SA

     11,700        144,985   

ALL — America Latina Logistica SA

     56,000        277,578   

Amil Participacoes SA

     16,000        253,543   

Anhanguera Educacional Participacoes SA

     15,700        325,578   

Arezzo Industria e Comercio SA

     5,700        115,320   

Arteris SA

     14,900        160,523   

Autometal SA

     4,100        42,491   

B2W Companhia Global do Varejoa

     10,000        70,760   

Banco ABC Brasil SAa

     121        887   

Banco Bradesco SA

     67,900        1,209,569   

Banco do Brasil SA

     71,800        956,559   

Banco Santander (Brasil) SA Units

     94,900        690,234   

BM&F Bovespa SA

     220,800        1,497,612   

BR Malls Participacoes SA

     50,600        655,182   

BR Properties SA

     21,700        270,002   

Brasil Brokers Participacoes SA

     26,500        95,835   

Brasil Insurance Participacoes e Administracao SA

     7,300        77,353   

Brazil Pharma SA

     16,700        131,769   

BRF — Brasil Foods SA

     81,900        1,779,174   

Brookfield Incorporacoes SA

     44,200        70,421   

CCR SA

     107,300        1,077,287   

Centrais Eletricas Brasileiras SA

     41,700        146,586   

CETIP SA — Mercados Organizados

     26,700        322,761   

Cielo SA

     36,200        1,088,142   

Companhia de Bebidas das Americas

     17,500        772,634   

Companhia de Locacao das Americas

     13,000        87,451   

Companhia de Saneamento Basico do Estado de Sao Pauloa

     13,900        674,717   

Companhia de Saneamento de Minas Gerais SA

     7,000        181,630   

Companhia Hering SA

     17,500        339,980   

Companhia Siderurgica Nacional SA

     95,100        481,008   

Cosan SA Industria e Comercio

     14,700        346,923   

CPFL Energia SA

     30,400        310,289   

Cyrela Brazil Realty SA Empreendimentos e Participacoes

     37,300        328,269   

Diagnosticos da America SA

     29,500        203,670   
Security   Shares     Value  
   

Duratex SA

     29,000      $ 242,755   

EcoRodovias Infraestrutura e Logistica SA

     19,000        165,004   

EDP Energias do Brasil SA

     29,100        176,770   

Embraer SA

     69,700        589,441   

Equatorial Energia SA

     18,076        182,762   

Estacio Participacoes SA

     10,400        255,121   

Eternit SA

     22,000        95,584   

Even Construtora e Incorporadora SA

     25,000        126,448   

EZ TEC Empreendimentos e Participacoes SA

     6,200        86,081   

Fibria Celulose SAa

     31,400        356,230   

Fleury SA

     8,000        89,019   

Gafisa SAa

     61,400        132,918   

Grendene SA

     11,400        105,749   

Helbor Empreendimentos SA

     13,400        78,620   

Hypermarcas SAa

     43,200        382,160   

Iguatemi Empresa de Shopping Centers SA

     8,900        122,532   

International Meal Co. Holdings SA

     5,900        83,408   

Iochpe-Maxion SA

     9,200        121,218   

JBS SAa

     53,600        185,977   

JHSF Participacoes SA

     9,000        38,693   

Julio Simoes Logistica SA

     7,600        63,426   

Kroton Educacional SAa

     11,600        303,920   

Light SA

     9,300        90,784   

LLX Logistica SAa

     67,200        67,978   

Localiza Rent A Car SA

     15,700        298,102   

Lojas Americanas SA

     14,400        125,274   

Lojas Renner SA

     15,200        579,370   

LPS Brasil — Consultoria de Imoveis SA

     4,900        88,726   

Magazine Luiza SA

     8,000        41,030   

Magnesita Refratarios SA

     28,600        114,278   

Marfrig Alimentos SAa

     26,100        130,031   

Mills Estruturas e Servicos de Engenharia SA

     9,500        154,529   

Minerva SA

     13,600        88,736   

MMX Mineracao e Metalicos SAa

     38,000        64,195   

MPX Energia SAa

     20,800        110,570   

MRV Engenharia e Participacoes SA

     40,700        261,438   

Multiplan Empreendimentos Imobiliarios SA

     8,600        246,416   
 

 

SCHEDULE OF INVESTMENTS

      7   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® CORE MSCI EMERGING MARKETS ETF

February 28, 2013

 

Security   Shares     Value  
   

Multiplus SA

     6,000      $ 111,830   

Natura Cosmeticos SA

     20,700        535,011   

Odontoprev SA

     32,800        151,964   

Oi SA

     31,400        134,202   

PDG Realty SA Empreendimentos e Participacoes

     161,700        262,535   

Petroleo Brasileiro SA

     376,700        2,760,803   

Porto Seguro SA

     13,300        176,584   

Qualicorp SAa

     25,500        285,426   

Raia Drogasil SA

     24,800        286,245   

Restoque Comercio e Confeccoes de Roupas SA

     15,200        78,110   

Rossi Residencial SA

     46,587        82,707   

Santos Brasil Participacoes SA Units

     5,300        80,823   

Sao Martinho SA

     6,200        87,492   

SLC Agricola SA

     8,300        81,359   

Sonae Sierra Brasil SA

     3,400        49,011   

Souza Cruz SA

     46,900        749,366   

Sul America SA Units

     13,700        130,757   

T4F Entretenimento SA

     12,100        49,267   

Technos SA

     5,300        64,873   

Tecnisa SA

     19,600        86,644   

Tegma Gestao Logistica SA

     2,900        44,737   

TIM Participacoes SA

     104,900        458,947   

Totvs SA

     14,100        312,010   

TPI — Triunfo Participacoes e Investimentos SA

     7,400        46,861   

Tractebel Energia SA

     19,800        350,513   

Ultrapar Participacoes SA

     41,000        1,063,831   

UNICASA Industria de Moveis SA

     12,100        59,977   

Vale SA

     165,700        3,168,004   

Valid Solucoes e Servicos de Seguranca em Meios de Pagamento e Identificacao SA

     6,600        139,204   

Vanguarda Agro SAa

     298,365        70,928   

WEG SA

     26,800        359,077   
   

 

 

  
      34,027,943   

CHILE — 1.79%

    

Administradora de Fondos de Pensiones Provida SA

     19,590        136,403   

AES Gener SA

     285,922        196,510   

Aguas Andinas SA Series A

     266,636        214,154   

Banco de Chile

     2,562,206        425,346   
Security   Shares     Value  
   

Banco de Chile Series Ta

     23,654      $ 3,625   

Banco de Credito e Inversiones

     4,344        337,786   

Banco Santander (Chile) SA

     8,929,873        648,055   

Besalco SA

     38,575        73,841   

CAP SA

     9,136        328,552   

Cencosud SA

     128,229        801,279   

Colbun SAa

     1,022,698        321,283   

Compania Cervecerias Unidas SA

     12,993        210,945   

Compania SudAmericana de Vapores SAa

     659,179        73,227   

CorpBanca SA

     20,840,832        306,456   

Cruz Blanca Salud SA

     36,369        46,257   

E.CL SA

     79,321        179,451   

Empresa Nacional de Electricidad SA

     410,110        697,044   

Empresa Nacional de Telecomunicaciones SA

     14,604        308,109   

Empresas CMPC SA

     142,431        549,461   

Empresas Copec SA

     59,562        918,946   

Enersis SA

     1,688,143        644,924   

Inversiones Aguas Metropolitanas SA

     54,805        114,750   

Inversiones La Construccion SA

     3,018        57,419   

LATAM Airlines Group SA

     33,670        802,941   

Masisa SA

     395,402        43,632   

Parque Arauco SA

     55,958        155,708   

S.A.C.I. Falabella SA

     58,926        687,705   

SalfaCorp SA

     50,961        129,167   

Sociedad Matriz SAAM SAa

     888,971        109,183   

Socovesa SA

     64,014        32,139   

Sonda SA

     56,774        202,708   

Vina Concha y Toro SA

     71,243        148,543   
   

 

 

  
      9,905,549   

CHINA — 18.51%

    

361 Degrees International Ltd.b

     123,000        36,005   

Agile Property Holdings Ltd.

     168,000        217,072   

Agricultural Bank of China Ltd. Class H

     2,684,000        1,384,424   

Air China Ltd. Class H

     220,000        178,159   

Ajisen (China) Holdings Ltd.

     96,000        69,324   

Aluminum Corp. of China Ltd. Class Ha,b

     522,000        225,498   

Angang Steel Co. Ltd. Class Ha,b

     146,000        98,277   

Anhui Conch Cement Co. Ltd. Class H

     155,500        568,473   

Anhui Expressway Co. Ltd. Class H

     86,000        49,239   
 

 

8    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® CORE MSCI EMERGING MARKETS ETF

February 28, 2013

 

Security   Shares     Value  
   

Anta Sports Products Ltd.b

     113,000      $ 106,955   

Anton Oilfield Services Group

     154,000        87,576   

Anxin-China Holdings Ltd.

     352,000        81,250   

Asia Cement China Holdings Corp.

     91,500        49,438   

Asian Citrus Holdings Ltd.

     144,000        69,077   

AviChina Industry & Technology Co. Ltd. Class H

     268,000        123,030   

Bank of China Ltd. Class H

     9,494,000        4,480,814   

Bank of Communications Co. Ltd. Class H

     1,125,000        890,733   

BBMG Corp. Class H

     153,000        134,753   

Beijing Capital International Airport Co. Ltd. Class H

     240,000        188,785   

Beijing Capital Land Ltd. Class Hb

     176,000        80,115   

Beijing Enterprises Holdings Ltd.

     66,500        508,514   

Beijing Enterprises Water Group Ltd.b

     426,000        131,840   

Beijing North Star Co. Ltd. Class H

     102,000        27,621   

Belle International Holdings Ltd.

     577,000        1,062,504   

Billion Industrial Holdings Ltd.

     66,000        45,107   

Biostime International Holdings Ltd.

     20,500        89,879   

Bosideng International Holdings Ltd.

     366,000        113,271   

Brilliance China Automotive Holdings Ltd.a

     320,000        441,530   

BYD Co. Ltd. Class Ha,b

     66,500        235,820   

BYD Electronic International Co. Ltd.

     129,500        46,758   

C C Land Holdings Ltd.

     206,000        67,738   

Chaowei Power Holdings Ltd.

     116,000        56,094   

China Agri-Industries Holdings Ltd.

     273,200        155,362   

China Aoyuan Property Group Ltd.b

     403,000        82,109   

China BlueChemical Ltd. Class H

     226,000        144,841   

China CITIC Bank Corp. Ltd. Class H

     949,000        609,428   

China Coal Energy Co. Class H

     523,000        518,626   

China Communications Construction Co. Ltd. Class H

     569,000        538,561   

China Communications Services Corp. Ltd. Class H

     286,000        178,869   

China Construction Bank Corp. Class H

     9,073,000        7,487,856   

China COSCO Holdings Co. Ltd. Class Ha

     340,500        182,657   

China Datang Corp. Renewable Power Co. Ltd. Class H

     354,000        78,060   

China Dongxiang (Group) Co. Ltd.

     341,000        45,731   
Security   Shares     Value  
   

China Everbright International Ltd.

     299,000      $ 198,952   

China Everbright Ltd.

     110,000        204,259   

China Gas Holdings Ltd.

     404,000        393,328   

China High Speed Transmission Equipment Group Co. Ltd.a,b

     193,000        96,813   

China Huiyuan Juice Group Ltd.a

     123,000        49,328   

China International Marine Containers (Group) Co. Ltd. Class Ha

     84,600        176,949   

China Life Insurance Co. Ltd. Class H

     937,000        2,815,283   

China Lilang Ltd.b

     63,000        38,995   

China Longyuan Power Group Corp. Ltd. Class H

     352,000        320,914   

China Lumena New Materials Corp.

     460,000        107,958   

China Medical System Holdings Ltd.b

     130,000        119,022   

China Mengniu Dairy Co. Ltd.

     157,000        438,313   

China Merchants Bank Co. Ltd. Class H

     492,000        1,067,131   

China Merchants Holdings (International) Co. Ltd.

     144,000        499,507   

China Metal Recycling Holdings Ltd.a,b,c

     62,400        56,909   

China Minsheng Banking Corp. Ltd. Class H

     650,500        905,936   

China Mobile Ltd.

     756,500        8,335,806   

China Modern Dairy Holdings Ltd.a

     247,000        82,813   

China National Building Material Co. Ltd. Class H

     368,000        561,857   

China National Materials Co. Ltd. Class H

     198,000        59,235   

China Oil and Gas Group Ltd.a

     680,000        134,161   

China Oilfield Services Ltd. Class H

     208,000        441,489   

China Overseas Grand Oceans Group Ltd.b

     85,000        119,474   

China Overseas Land & Investment Ltd.

     512,000        1,554,846   

China Pacific Insurance (Group) Co. Ltd. Class H

     335,000        1,235,485   

China Petroleum & Chemical Corp. Class H

     2,460,000        2,797,888   

China Pharmaceutical Group Ltd.a

     120,000        48,279   

China Power International Development Ltd.b

     320,000        103,161   
 

 

SCHEDULE OF INVESTMENTS

      9   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® CORE MSCI EMERGING MARKETS ETF

February 28, 2013

 

Security   Shares     Value  
   

China Power New Energy Development Co. Ltd.a

     780,000      $ 54,314   

China Precious Metal Resources Holdings Co. Ltd.a,b

     420,000        75,824   

China Railway Construction Corp. Ltd. Class H

     238,500        250,038   

China Railway Group Ltd. Class H

     525,000        285,015   

China Rare Earth Holdings Ltd.

     352,000        76,257   

China Resources and Transportation Group Ltd.a

     2,200,000        86,527   

China Resources Cement Holdings Ltd.

     254,000        161,148   

China Resources Enterprise Ltd.

     150,000        487,437   

China Resources Gas Group Ltd.

     108,000        250,403   

China Resources Land Ltd.b

     258,000        753,554   

China Resources Power Holdings Co. Ltd.

     240,000        648,368   

China Rongsheng Heavy Industries Group Holdings Ltd.

     427,000        77,087   

China SCE Property Holdings Ltd.

     204,000        48,666   

China Shanshui Cement Group Ltd.

     235,000        168,185   

China Shenhua Energy Co. Ltd. Class H

     426,500        1,616,936   

China Shineway Pharmaceutical Group Ltd.b

     43,000        73,304   

China Shipping Container Lines Co. Ltd. Class Ha,b

     478,000        141,769   

China Shipping Development Co. Ltd. Class H

     186,000        103,615   

China Singyes Solar Technologies Holdings Ltd.b

     56,000        62,897   

China South City Holdings Ltd.

     308,000        51,235   

China Southern Airlines Co. Ltd. Class H

     246,000        135,771   

China State Construction International Holdings Ltd.

     234,000        328,300   

China Suntien Green Energy Corp. Ltd. Class H

     222,000        53,533   

China Taiping Insurance Holdings Co. Ltd.a

     110,200        219,978   

China Telecom Corp. Ltd. Class H

     1,722,000        892,659   

China Travel International Investment Hong Kong Ltd.

     408,000        85,758   
Security   Shares     Value  
   

China Unicom (Hong Kong) Ltd.

     588,000      $ 847,707   

China Vanke Co. Ltd. Class B

     164,300        333,691   

China Water Affairs Group Ltd.

     254,000        81,884   

China Wireless Technologies Ltd.

     236,000        63,300   

China Yongda Automobiles Services Holdings Ltd.a

     50,000        54,031   

China Yurun Food Group Ltd.a,b

     200,000        143,394   

China ZhengTong Auto Services Holdings Ltd.a

     124,500        99,538   

Chinasoft International Ltd.a

     180,000        42,941   

Chongqing Rural Commercial Bank Co. Ltd. Class H

     297,000        166,599   

CIMC Enric Holdings Ltd.

     70,000        77,629   

CITIC Pacific Ltd.

     163,000        250,548   

CITIC Resources Holdings Ltd.a,b

     436,000        62,970   

CITIC Securities Co. Ltd. Class H

     135,500        341,771   

CNOOC Ltd.

     2,245,000        4,411,923   

Comba Telecom Systems Holdings Ltd.b

     194,500        64,709   

Cosco International Holdings Ltd.

     268,000        118,883   

COSCO Pacific Ltd.

     222,000        355,550   

Country Garden Holdings Co. Ltd.a

     593,000        304,344   

CPMC Holdings Ltd.

     69,000        55,966   

CSR Corp Ltd. Class H

     232,000        189,971   

Dah Chong Hong Holdings Ltd.

     105,000        107,913   

Daphne International Holdings Ltd.b

     114,000        137,155   

Datang International Power Generation Co. Ltd. Class H

     378,000        164,266   

Dazhong Transportation Group Co. Ltd. Class B

     87,100        56,615   

DBA Telecommunications (Asia) Holdings Ltd.

     88,000        56,739   

Digital China Holdings Ltd.

     104,000        163,346   

Dongfang Electric Corp. Ltd. Class Hb

     40,600        76,333   

Dongfeng Motor Group Co. Ltd. Class H

     346,000        506,852   

Dongyue Group Ltd.b

     152,000        100,747   

ENN Energy Holdings Ltd.

     98,000        492,221   

Evergrande Real Estate Group Ltd.b

     831,000        410,418   

Fantasia Holdings Group Co. Ltd.

     273,000        42,949   

Far East Horizon Ltd.

     181,000        133,273   

First Tractor Co. Ltd. Class Ha

     72,000        70,284   

Fosun International Ltd.

     220,500        143,591   
 

 

10    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® CORE MSCI EMERGING MARKETS ETF

February 28, 2013

 

Security   Shares     Value  
   

Franshion Properties (China) Ltd.

     420,000      $ 148,397   

Fufeng Group Ltd.b

     160,000        68,499   

GCL-Poly Energy Holdings Ltd.b

     1,063,000        283,746   

Geely Automobile Holdings Ltd.

     585,000        322,115   

Global Bio-Chem Technology Group Co. Ltd.

     502,000        57,613   

Glorious Property Holdings Ltd.a,b

     347,000        66,224   

Golden Eagle Retail Group Ltd.

     82,000        168,339   

Golden Meditech Holdings Ltd.

     456,000        54,686   

GOME Electrical Appliances Holdings Ltd.a

     1,276,000        141,506   

Great Wall Motor Co. Ltd. Class H

     128,000        500,951   

Greatview Aseptic Packaging Co. Ltd.

     71,000        45,961   

Greentown China Holdings Ltd.a,b

     78,500        152,448   

Guangdong Investment Ltd.

     296,000        254,592   

Guangzhou Automobile Group Co. Ltd. Class H

     268,000        223,251   

Guangzhou R&F Properties Co. Ltd. Class H

     112,400        190,743   

Haier Electronics Group Co. Ltd.a

     101,000        182,338   

Haitian International Holdings Ltd.

     87,000        112,412   

Haitong Securities Co. Ltd. Class Ha

     144,800        243,859   

Hangzhou Steam Turbine Co. Ltd. Class B

     36,600        66,500   

Harbin Electric Co. Ltd. Class H

     92,000        80,435   

Hengan International Group Co. Ltd.b

     92,000        933,661   

Hengdeli Holdings Ltd.b

     216,000        70,469   

Hidili Industry International Development Ltd.b

     247,000        67,524   

Honghua Group Ltd.b

     174,000        85,263   

Hopson Development Holdings Ltd.a

     78,000        134,579   

Hua Han Bio-Pharmaceutical Holdings Ltd. Class H

     268,800        79,030   

Huabao International Holdings Ltd.

     265,000        147,965   

Huaneng Power International Inc. Class H

     406,000        417,788   

Hunan Nonferrous Metal Corp. Ltd. Class Ha,b

     224,000        74,813   

Industrial and Commercial Bank of China Ltd. Class H

     8,200,000        5,889,734   

Inner Mongolia Yitai Coal Co. Ltd. Class B

     74,500        428,300   

Interchina Holdings Co. Ltd.a

     665,000        37,731   
Security   Shares     Value  
   

Intime Department Store Group Co. Ltd.

     125,000      $ 153,291   

Jiangsu Expressway Co. Ltd. Class H

     146,000        147,603   

Jiangsu Future Land Co. Ltd. Class B

     86,400        79,315   

Jiangxi Copper Co. Ltd. Class H

     185,000        443,245   

Jinchuan Group International Resources Co. Ltd.a

     144,000        33,239   

Ju Teng International Holdings Ltd.

     134,000        72,574   

Kai Yuan Holdings Ltd.a

     2,740,000        70,665   

Kaisa Group Holdings Ltd.a,b

     236,000        78,516   

Kingboard Chemical Holdings Co. Ltd.

     81,500        248,551   

Kingboard Laminates Holdings Ltd.

     183,000        87,313   

Kingdee International Software Group Co. Ltd.a

     246,000        43,459   

Kingsoft Corp. Ltd.

     73,000        63,258   

Kingway Brewery Holdings Ltd.

     188,000        77,092   

Kunlun Energy Co. Ltd.

     410,000        850,152   

KWG Property Holding Ltd.

     156,500        107,362   

Lao Feng Xiang Co. Ltd. Class B

     26,400        68,191   

Lee & Man Paper Manufacturing Ltd.

     234,000        175,315   

Lenovo Group Ltd.

     782,000        873,275   

Li Ning Co. Ltd.a,b

     103,500        63,930   

Lianhua Supermarket Holdings Co. Ltd. Class H

     53,000        48,798   

Lijun International Pharmaceutical (Holding) Co. Ltd.b

     250,000        68,989   

Longfor Properties Co. Ltd.

     176,500        312,722   

Lonking Holdings Ltd.b

     262,000        70,611   

Luthai Textile Co. Ltd. Class B

     51,700        50,268   

Magic Holdings International Ltd.

     111,000        44,086   

Maoye International Holdings Ltd.

     177,000        38,573   

Microport Scientific Corp.b

     81,000        50,763   

MIE Holdings Corp.b

     198,000        57,193   

Minth Group Ltd.

     88,000        115,066   

MMG Ltd.a

     236,000        104,384   

New China Life Insurance Co. Ltd. Class H

     70,700        275,785   

New World Department Store China Ltd.

     66,000        41,022   

Nine Dragons Paper (Holdings) Ltd.

     204,000        194,139   

North Mining Shares Co. Ltd.a

     1,160,000        68,809   

NVC Lighting Holdings Ltd.b

     218,000        54,817   

Parkson Retail Group Ltd.

     210,000        136,482   
 

 

SCHEDULE OF INVESTMENTS

      11   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® CORE MSCI EMERGING MARKETS ETF

February 28, 2013

 

Security   Shares     Value  
   

PCD Stores (Group) Ltd.b

     554,000      $ 83,584   

People’s Insurance Co. Group of China Ltd. Class Ha

     450,000        264,028   

PetroChina Co. Ltd. Class H

     2,646,000        3,637,254   

Phoenix Satellite Television Holdings Ltd.b

     126,000        53,293   

PICC Property and Casualty Co. Ltd. Class H

     340,000        488,417   

Ping An Insurance (Group) Co. of China Ltd. Class H

     236,500        1,979,258   

Poly Property Group Co. Ltd.a

     255,000        182,170   

Ports Design Ltd.

     54,500        48,422   

Powerlong Real Estate Holdings Ltd.

     171,000        43,440   

Real Nutriceutical Group Ltd.

     109,000        31,625   

Renhe Commercial Holdings Co. Ltd.a

     1,544,000        113,488   

REXLot Holdings Ltd.

     975,000        89,267   

Road King Infrastructure Ltd.

     107,000        100,034   

Sany Heavy Equipment International Holdings Co. Ltd.b

     136,000        61,381   

Semiconductor Manufacturing International Corp.a

     2,958,000        169,740   

Shandong Weigao Group Medical Polymer Co. Ltd. Class H

     220,000        204,543   

Shanghai Electric Group Co. Ltd. Class H

     358,000        145,419   

Shanghai Industrial Holdings Ltd.

     71,000        231,636   

Shanghai Industrial Urban Development Group Ltd.a,b

     202,000        45,324   

Shanghai Jin Jiang International Hotels Group Co. Ltd. Class H

     200,000        35,849   

Shanghai Mechanical and Electrical Industry Co. Ltd. Class B

     34,400        40,558   

Shanghai Pharmaceuticals Holding Co. Ltd. Class H

     76,300        164,311   

Shenzhen Expressway Co. Ltd. Class H

     222,000        90,748   

Shenzhen International Holdings Ltd.

     1,227,500        172,534   

Shenzhen Investment Ltd.b

     356,000        155,624   

Shenzhou International Group Holdings Ltd.b

     54,000        153,194   

Shimao Property Holdings Ltd.

     180,500        363,102   

Shougang Concord International Enterprises Co. Ltd.a

     1,392,000        89,750   
Security   Shares     Value  
   

Shougang Fushan Resources Group Ltd.

     414,000      $ 182,580   

Shui On Land Ltd.

     365,500        169,203   

Sihuan Pharmaceutical Holdings Group Ltd.

     246,000        114,200   

Sino Biopharmaceutical Ltd.b

     364,000        209,345   

Sino Oil And Gas Holdings Ltd.a

     2,995,000        62,180   

Sino-Ocean Land Holdings Ltd.

     354,500        245,023   

Sinofert Holdings Ltd.b

     290,000        71,800   

Sinopec Kantons Holdings Ltd.b

     94,000        85,214   

Sinopec Shanghai Petrochemical Co. Ltd. Class H

     306,000        134,161   

Sinopharm Group Co. Ltd. Class H

     104,400        329,832   

Sinotrans Ltd. Class H

     282,000        54,910   

Sinotrans Shipping Ltd.b

     235,500        66,202   

Skyworth Digital Holdings Ltd.

     218,000        146,461   

SOHO China Ltd.b

     258,000        200,615   

Sun Art Retail Group Ltd.b

     293,000        408,054   

Sunac China Holdings Ltd.b

     209,000        161,975   

Sunny Optical Technology Group Co Ltd.

     56,000        51,704   

TCL Multimedia Technology Holdings Ltd.

     64,000        50,590   

Tech Pro Technology Development Ltd.a

     244,000        92,505   

Tencent Holdings Ltd.

     128,400        4,440,689   

Tiangong International Co. Ltd.

     172,000        50,348   

Tianjin Development Holdings Ltd.a,b

     98,000        74,054   

Tianjin Port Development Holdings Ltd.b

     612,000        92,334   

Tianneng Power International Ltd.

     110,000        82,271   

Tibet 5100 Water Resources Holdings Ltd.b

     148,000        44,849   

Tingyi (Cayman Islands) Holding Corp.

     248,000        650,793   

Tong Ren Tang Technologies Co. Ltd. Class H

     34,000        95,579   

Towngas China Co. Ltd.

     130,000        114,161   

Travelsky Technology Ltd. Class H

     105,000        68,783   

Tsingtao Brewery Co. Ltd. Class H

     36,000        225,382   

Uni-President China Holdings Ltd.b

     133,000        163,788   

Vinda International Holdings Ltd.b

     83,000        117,305   

VODone Ltd.

     480,000        40,852   

Want Want China Holdings Ltd.

     747,000        1,048,036   
 

 

12    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® CORE MSCI EMERGING MARKETS ETF

February 28, 2013

 

Security   Shares     Value  
   

Wasion Group Holdings Ltd.

     84,000      $ 47,661   

Weichai Power Co. Ltd. Class H

     60,000        227,471   

Weiqiao Textile Co. Ltd. Class H

     115,500        60,171   

West China Cement Ltd.

     398,000        75,958   

Winsway Coking Coal Holding Ltd.

     410,000        59,215   

Wumart Stores Inc. Class H

     64,000        125,444   

Xingda International Holdings Ltd.b

     105,000        49,556   

Xinhua Winshare Publishing and Media Co. Ltd. Class H

     89,000        49,924   

XTEP International Holdings Ltd.

     88,000        35,859   

Yanchang Petroleum International Ltd.a

     1,020,000        72,342   

Yanzhou Coal Mining Co. Ltd. Class H

     258,000        399,899   

Yingde Gases Group Co. Ltd.

     134,000        156,898   

Yuanda China Holdings Ltd.

     376,000        48,486   

Yuexiu Property Co. Ltd.

     650,000        224,634   

Yuexiu Real Estate Investment Trust

     271,000        142,929   

Yuexiu Transport Infrastructure Ltd.

     112,000        62,825   

Yuzhou Properties Co.b

     190,000        52,922   

Zhaojin Mining Industry Co. Ltd. Class H

     108,000        142,332   

Zhejiang Expressway Co. Ltd. Class H

     194,000        162,858   

Zhejiang Southeast Electric Power Co. Ltd. Class B

     92,900        69,582   

Zhongsheng Group Holdings Ltd.

     72,500        112,188   

Zhuzhou CSR Times Electric Co. Ltd. Class H

     57,000        188,534   

Zijin Mining Group Co. Ltd. Class H

     804,000        276,818   

Zoomlion Heavy Industry Science and Technology Co. Ltd. Class H

     164,800        217,612   

ZTE Corp. Class H

     81,200        138,634   
   

 

 

  
      102,635,342   

COLOMBIA — 0.85%

  

Almacenes Exito SA

     24,419        470,974   

Bancolombia SA

     29,425        466,993   

Bolsa de Valores de Colombia

     5,946,306        101,908   

Cementos Argos SA

     51,008        261,410   

Corporacion Financiera Colombiana SA

     9,831        192,213   

Ecopetrol SA

     596,598        1,712,855   

Grupo Argos SA

     37,933        474,927   

Grupo de Inversiones Suramericana SA

     30,110        641,466   
Security   Shares     Value  
   

Interconexion Electrica SA ESP

     48,833      $ 263,719   

Isagen SA ESP

     107,123        150,825   
   

 

 

  
      4,737,290   

CZECH REPUBLIC — 0.26%

    

Central European Media Enterprises Ltd. AS Class Aa

     10,031        52,257   

CEZ AS

     20,329        612,263   

Komercni Banka AS

     2,014        409,743   

Pegas Nonwovens SA

     3,386        91,299   

Philip Morris CR AS

     60        35,973   

Telefonica O2 Czech Republic AS

     14,663        242,441   
   

 

 

  
      1,443,976   

EGYPT — 0.32%

    

Citadel Capital SAEa

     133,752        74,413   

Commercial International Bank (Egypt) SAE

     77,047        388,073   

EFG-Hermes Holding Co. SAEa

     46,175        78,096   

Egyptian Kuwaiti Holding Co. SAE

     91,609        107,182   

ElSwedy Electric Co. SAE

     8,622        26,236   

ezzsteel

     29,194        43,096   

National Societe Generale Bank SAE

     14,529        81,910   

Orascom Construction Industries SAEa

     12,273        471,393   

Orascom Telecom Holding SAEa

     345,947        215,051   

Palm Hills Developments SAEa

     90,794        30,712   

Pioneers Holding Co.a

     26,546        17,132   

Six of October Development & Investment Co.a

     11,053        34,502   

South Valley Cement Co.a

     48,774        29,813   

Talaat Moustafa Group Holding Company SAEa

     119,814        72,525   

Telecom Egypt Co. SAE

     62,422        128,634   
   

 

 

  
      1,798,768   

HUNGARY — 0.21%

    

EGIS Pharmaceuticals PLC

     565        46,885   

Magyar Telekom Telecommunications PLC

     63,505        114,238   

MOL Hungarian Oil and Gas PLC

     5,271        405,136   

OTP Bank PLC

     29,515        613,125   
   

 

 

  
      1,179,384   
 

 

SCHEDULE OF INVESTMENTS

      13   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® CORE MSCI EMERGING MARKETS ETF

February 28, 2013

 

Security   Shares     Value  
   

INDONESIA — 3.15%

    

PT Adaro Energy Tbk

     1,797,000      $ 291,953   

PT Agis Tbka

     720,500        33,552   

PT Agung Podomoro Land Tbka

     977,000        46,001   

PT AKR Corporindo Tbk

     275,500        127,579   

PT Alam Sutera Realty Tbk

     1,421,500        136,803   

PT Aneka Tambang (Persero) Tbk

     523,500        69,883   

PT Astra Agro Lestari Tbk

     45,000        85,916   

PT Astra International Tbk

     2,545,000        2,093,729   

PT Bakrieland Development Tbka

     7,818,500        47,735   

PT Bank Bukopin Tbk

     744,500        60,093   

PT Bank Central Asia Tbk

     1,537,000        1,749,573   

PT Bank Danamon Indonesia Tbk

     419,500        273,488   

PT Bank Mandiri (Persero) Tbk

     1,189,000        1,236,555   

PT Bank Negara Indonesia (Persero) Tbk

     945,500        450,075   

PT Bank Pembangunan Daerah Jawa Barat dan Banten Tbk

     399,500        50,436   

PT Bank Rakyat Indonesia (Persero) Tbk

     1,396,000        1,365,158   

PT Bank Tabungan Negara (Persero) Tbk

     451,376        76,136   

PT Benakat Petroleum Energy Tbka

     2,914,000        46,438   

PT Bhakti Investama Tbk

     2,932,500        154,765   

PT Bukit Asam (Persero) Tbk

     102,000        159,383   

PT Bumi Resources Tbk

     2,086,500        177,051   

PT BW Plantation Tbk

     262,000        36,873   

PT Charoen Pokphand Indonesia Tbk

     941,000        428,458   

PT Ciputra Development Tbk

     1,509,000        173,332   

PT Ciputra Property Tbk

     580,000        57,019   

PT Citra Marga Nusaphala Persada Tbk

     341,500        63,611   

PT Energi Mega Persada Tbka

     6,182,500        66,537   

PT Erajaya Swasembada Tbka

     125,000        37,836   

PT Gajah Tunggal Tbk

     217,500        49,516   

PT Garuda Indonesia (Persero) Tbka

     764,000        52,180   

PT Global Mediacom Tbk

     767,000        182,553   

PT Gudang Garam Tbk

     58,500        292,394   

PT Holcim Indonesia Tbk

     235,000        89,370   

PT Indika Energy Tbk

     254,000        36,798   

PT Indo Tambangraya Megah Tbk

     49,000        204,093   

PT Indocement Tunggal Prakarsa Tbk

     186,500        423,622   

PT Indofood Sukses Makmur Tbk

     535,500        404,527   
Security   Shares     Value  
   

PT Indosat Tbk

     170,500      $ 112,038   

PT Japfa Comfeed Indonesia Tbk

     110,000        92,772   

PT Jasa Marga (Persero) Tbk

     300,500        172,585   

PT Kalbe Farma Tbk

     2,937,500        392,133   

PT Kawasan Industri Jababeka Tbka

     2,207,000        59,380   

PT Krakatau Steel (Persero) Tbk

     570,000        39,520   

PT Lippo Karawaci Tbk

     2,305,000        269,535   

PT Medco Energi Internasional Tbk

     397,000        69,019   

PT Media Nusantara Citra Tbk

     535,500        163,473   

PT Mitra Adiperkasa Tbk

     116,500        94,034   

PT MNC Sky Vision Tbka

     275,000        60,472   

PT Pakuwon Jati Tbk

     1,435,000        53,459   

PT Panin Financial Tbka

     2,681,000        56,874   

PT Perusahaan Gas Negara (Persero) Tbk

     1,380,000        685,466   

PT Ramayana Lestari Sentosa Tbk

     376,000        51,360   

PT Semen Gresik (Persero) Tbk

     372,500        668,792   

PT Sentul City Tbka

     2,962,000        90,422   

PT Summarecon Agung Tbk

     653,000        157,109   

PT Surya Semesta Internusa Tbk

     402,657        62,502   

PT Telekomunikasi Indonesia (Persero) Tbk

     1,260,000        1,401,666   

PT Timah (Persero) Tbk

     318,000        48,374   

PT Tower Bersama Infrastructure Tbka

     172,000        99,674   

PT Trada Maritime Tbka

     597,500        87,799   

PT Unilever Indonesia Tbk

     191,500        452,815   

PT United Tractors Tbk

     221,000        441,383   

PT Wijaya Karya (Persero) Tbk

     383,500        70,243   

PT XL Axiata Tbk

     315,000        177,653   
   

 

 

  
      17,461,573   

MALAYSIA — 3.50%

    

Aeon Credit Service M Bhd

     8,700        34,457   

Affin Holdings Bhd

     66,900        71,435   

AirAsia Bhd

     155,900        146,795   

Alliance Financial Group Bhd

     156,200        217,836   

AMMB Holdings Bhd

     226,200        462,574   

Axiata Group Bhd

     318,400        659,363   

Berjaya Corp. Bhd

     503,300        87,941   

Berjaya Sports Toto Bhd

     80,408        109,275   

BIMB Holdings Bhd

     39,900        40,023   

British American Tobacco (Malaysia) Bhd

     13,900        274,357   

Bumi Armada Bhda

     190,800        233,985   
 

 

14    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® CORE MSCI EMERGING MARKETS ETF

February 28, 2013

 

Security   Shares     Value  
   

Bursa Malaysia Bhd

     62,800      $ 134,114   

CapitaMalls Malaysia Trust Bhd

     142,600        86,746   

Carlsberg Brewery Malaysia Bhd

     18,700        78,055   

CIMB Group Holdings Bhd

     627,700        1,462,365   

Dialog Group Bhd

     183,200        138,119   

DiGi.Com Bhd

     385,700        570,344   

DRB-Hicom Bhd

     99,500        82,742   

Eastern & Oriental Bhd

     76,700        39,212   

Felda Global Ventures Holdings Bhd

     162,800        236,522   

Gamuda Bhd

     43,300        53,801   

Genting Bhd

     260,300        799,303   

Genting Malaysia Bhd

     370,500        443,569   

Genting Plantations Bhd

     30,500        83,590   

HAP Seng Consolidated Bhd

     91,800        46,635   

Hartalega Holdings Bhd

     33,400        51,443   

Hong Leong Bank Bhd

     77,400        365,149   

Hong Leong Financial Group Bhd

     35,400        164,257   

IGB Corp. Bhd

     126,200        91,878   

IHH Healthcare Bhda

     249,200        276,575   

IJM Corp. Bhd

     69,800        115,863   

IJM Land Bhd

     51,900        36,610   

IJM Plantations Bhd

     38,000        36,027   

IOI Corp. Bhd

     415,400        658,618   

KLCC Property Holdings Bhd

     41,100        86,974   

KPJ Healthcare Bhd

     72,700        137,143   

Kuala Lumpur Kepong Bhd

     62,600        420,102   

Lafarge Malayan Cement Bhd

     47,400        149,692   

Mah Sing Group Bhd

     65,300        44,372   

Malayan Banking Bhd

     551,500        1,632,818   

Malaysia Airports Holdings Bhd

     76,700        135,754   

Malaysia Building Society Bhd

     51,600        41,407   

Malaysia Marine and Heavy Engineering Holdings Bhd

     62,600        82,035   

Malaysian Airline System Bhda

     150,500        35,793   

Malaysian Resources Corp. Bhd

     269,300        112,408   

Maxis Communications Bhd

     282,100        581,452   

Media Chinese International Ltd.

     84,300        30,278   

Media Prima Bhd

     142,100        100,236   

MISC Bhda

     154,700        263,798   

MMC Corp. Bhd

     124,200        100,871   

Multi-Purpose Holdings Bhd

     106,000        116,615   

OSK Holdings Bhd

     194,000        90,393   

Parkson Holdings Bhd

     75,400        112,472   
Security   Shares     Value  
   

Pavilion Real Estate Investment Trust Bhd

     106,200      $ 53,607   

Petronas Chemicals Group Bhd

     353,700        726,742   

Petronas Dagangan Bhd

     29,000        220,702   

Petronas Gas Bhd

     72,800        431,547   

POS Malaysia Bhd

     41,900        51,248   

PPB Group Bhd

     67,100        268,791   

Public Bank Bhd Foreign

     136,600        711,620   

QL Resources Bhd

     50,700        49,215   

RHB Capital Bhd

     86,300        219,206   

Sapurakencana Petroleum Bhda

     328,800        308,533   

Sarawak Oil Palms Bhd

     17,900        29,249   

Sime Darby Bhd

     341,100        1,016,512   

Sunway Bhda

     116,800        94,105   

Sunway Real Estate Investment Trust Bhd

     216,900        105,976   

Supermax Corp. Bhd

     70,800        41,923   

Ta Ann Holdings Bhd

     22,600        24,863   

TA Enterprise Bhd

     472,800        77,257   

TAN Chong Motor Holdings Bhd

     29,200        48,564   

Telekom Malaysia Bhd

     131,200        225,848   

Tenaga Nasional Bhd

     343,500        771,361   

TIME dotCom Bhd

     62,000        76,635   

Top Glove Corp. Bhd

     49,500        87,932   

Tradewinds (Malaysia) Bhd

     13,100        39,167   

TSH Resources Bhd

     49,200        34,705   

UEM Land Holdings Bhda

     189,200        140,194   

UMW Holdings Bhd

     59,400        246,018   

UOA Development Bhd

     57,800        34,787   

WCT Bhd

     142,480        101,887   

YTL Corp. Bhd

     641,000        342,226   

YTL Power International Bhd

     347,400        170,862   
   

 

 

  
      19,415,472   

MEXICO — 4.88%

    

Alfa SAB de CV Series A

     359,400        874,174   

Alpek SAB de CV

     56,600        128,987   

Alsea SAB de CVa

     51,600        129,101   

America Movil SAB de CV Series L

     4,895,700        5,122,536   

Arca Continental SAB de CV

     40,100        301,897   

Axtel SAB de CV CPOa,b

     154,400        35,525   

Bolsa Mexicana de Valores SAB de CV

     35,000        85,158   
 

 

SCHEDULE OF INVESTMENTS

      15   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® CORE MSCI EMERGING MARKETS ETF

February 28, 2013

 

Security   Shares     Value  
   

Cemex SAB de CV CPOa

     1,330,900      $ 1,429,020   

Coca-Cola FEMSA SAB de CV Series L

     54,000        912,315   

Compartamos SAB de CV

     133,500        212,297   

Consorcio ARA SAB de CVa

     144,400        55,939   

Controladora Comercial Mexicana SAB de CV BC Units

     45,800        158,319   

Desarrolladora Homex SAB de CVa,b

     35,900        71,334   

El Puerto de Liverpool SA de CV Series C1

     20,500        231,039   

Empresas ICA SAB de CVa

     79,900        230,609   

Fomento Economico Mexicano SAB de CV BD Units

     244,100        2,730,041   

Genomma Lab Internacional SAB de CV Series Ba

     92,500        221,949   

Gruma SAB de CV Series Ba

     23,200        81,685   

Grupo Aeromexico SAB de CVa

     22,600        31,164   

Grupo Aeroportuario del Centro Norte SAB de CV

     22,400        76,484   

Grupo Aeroportuario del Pacifico SAB de CV Series B

     36,200        223,666   

Grupo Aeroportuario del Sureste SAB de CV Series B

     25,900        341,315   

Grupo Bimbo SAB de CV Series A

     208,400        565,445   

Grupo Carso SAB de CV Series A1

     71,500        346,870   

Grupo Famsa SAB de CV Series Aa

     27,600        40,305   

Grupo Financiero Banorte SAB de CV Series O

     236,600        1,756,083   

Grupo Financiero Inbursa SAB de CV Series O

     256,900        724,180   

Grupo Financiero Santander Mexico SAB de CV Series B

     190,400        568,610   

Grupo Herdez SAB de CVb

     24,700        74,711   

Grupo Mexico SAB de CV Series B

     479,700        1,883,819   

Grupo Modelo SAB de CV Series C

     80,100        716,941   

Grupo Simec SAB de CV Series Ba

     10,200        43,497   

Grupo Televisa SAB de CV CPO

     325,400        1,746,695   

Industrias CH SAB de CV Series Ba

     20,700        168,899   

Industrias Penoles SAB de CV

     17,285        797,578   

Kimberly-Clark de Mexico SAB de CV Series A

     193,600        612,862   

Mexichem SAB de CV

     134,200        672,053   

Minera Frisco SAB de CV Series A1a

     83,200        351,345   

TV Azteca SAB de CV CPO

     189,400        131,919   
Security   Shares     Value  
   

Urbi Desarrollos Urbanos SAB de CVa

     154,000      $ 51,944   

Wal-Mart de Mexico SAB de CV Series V

     665,600        2,090,361   
   

 

 

  
      27,028,671   

MOROCCO — 0.07%

  

Attijariwafa Bank

     4,609        164,152   

Douja Promotion Groupe Addoha SA

     13,062        92,888   

Managem

     185        34,140   

Maroc Telecom SA

     9,615        122,624   
   

 

 

  
      413,804   

PERU — 0.52%

    

Compania de Minas Buenaventura SA SP ADR

     25,402        650,799   

Credicorp Ltd.

     9,011        1,351,470   

Southern Copper Corp.

     23,192        876,426   
   

 

 

  
      2,878,695   

PHILIPPINES — 1.17%

    

Aboitiz Equity Ventures Inc.

     242,010        348,790   

Aboitiz Power Corp.

     209,000        197,897   

Alliance Global Group Inc.

     240,800        118,446   

Atlas Consolidated Mining & Development Corp.a

     99,000        52,349   

Ayala Corp.

     22,620        322,388   

Ayala Land Inc.

     665,800        523,994   

Bank of the Philippine Islands

     83,310        217,188   

BDO Unibank Inc.a

     184,500        449,225   

Belle Corp.a

     633,200        91,881   

Cebu Air Inc.

     33,560        54,475   

DMCI Holdings Inc.

     96,000        126,316   

East West Banking Corp.a

     60,800        52,486   

Energy Development Corp.

     939,500        175,145   

Filinvest Land Inc.

     1,699,000        82,318   

First Gen Corp.a

     135,100        87,386   

First Philippine Holdings Corp.

     29,360        82,101   

Globe Telecom Inc.

     4,240        117,314   

GT Capital Holdings Inc.

     6,040        111,412   

International Container Terminal Services Inc.

     93,400        188,362   

Jollibee Foods Corp.

     48,050        149,964   

Lopez Holdings Corp.

     422,000        77,841   

Manila Water Co. Inc.

     86,500        77,225   

Megaworld Corp.

     1,422,000        137,444   
 

 

16    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® CORE MSCI EMERGING MARKETS ETF

February 28, 2013

 

Security   Shares     Value  
   

Metropolitan Bank & Trust Co.

     31,100      $ 87,196   

Nickel Asia Corp.

     90,600        47,239   

Philex Petroleum Corp.a

     50,000        41,318   

Philippine Long Distance Telephone Co.

     5,185        372,361   

Philippine National Banka

     32,070        81,871   

Puregold Price Club Inc.

     115,900        118,009   

Rizal Commercial Banking Corp.

     28,560        44,252   

Robinsons Land Corp.

     215,400        120,520   

San Miguel Corp.

     64,000        195,022   

Security Bank Corp.

     17,100        74,313   

SM Development Corp.

     255,000        53,747   

SM Investments Corp.

     27,645        709,822   

SM Prime Holdings Inc.

     844,500        394,626   

Universal Robina Corp.

     99,300        231,521   

Vista Land & Lifescapes Inc.

     352,600        47,522   
   

 

 

  
      6,461,286   

POLAND — 1.46%

    

Asseco Poland SA

     8,608        117,058   

Bank Handlowy w Warszawie SA

     4,554        128,965   

Bank Millennium SAa

     66,953        100,813   

Bank Pekao SA

     17,056        861,786   

BRE Bank SAa

     2,058        218,795   

Budimex SA

     1,646        38,369   

Ciech SAa

     7,462        50,420   

Cyfrowy Polsat SAa

     28,987        149,749   

ENEA SA

     13,983        68,273   

Eurocash SA

     8,855        147,837   

Getin Holding SAa

     52,192        46,692   

Getin Noble Bank SAa

     222,818        132,657   

Globe Trade Centre SAa,b

     36,299        93,190   

Grupa Lotos SAa

     8,740        114,999   

Jastrzebska Spolka Weglowa SA

     4,927        147,443   

Kernel Holding SAa

     6,842        140,308   

KGHM Polska Miedz SA

     17,572        1,000,224   

Lubelski Wegiel Bogdanka SA

     4,409        179,718   

Netia SAa

     57,530        84,087   

Polska Grupa Energetyczna SA

     93,452        477,777   

Polski Koncern Naftowy Orlen SAa

     40,355        682,001   

Polskie Gornictwo Naftowe i Gazownictwo SAa

     222,843        401,525   

Powszechna Kasa Oszczednosci Bank Polski SA

     113,271        1,270,242   
Security   Shares     Value  
   

Powszechny Zaklad Ubezpieczen SA

     6,976      $ 885,363   

Synthos SA

     65,484        114,072   

Tauron Polska Energia SA

     128,438        178,018   

TVN SA

     25,977        79,374   

Warsaw Stock Exchange SA

     6,095        80,638   

Zaklady Azotowe w Tarnowie-Moscicach SAa

     6,546        116,298   
   

 

 

  
      8,106,691   

RUSSIA — 5.10%

    

Aeroflot-Russian Airlines OJSC

     35,656        61,752   

Federal Grid Co. of Unified Energy System OJSCa

     41,870,000        260,064   

Gazprom OAO

     1,335,830        5,997,619   

IDGC Holding JSCa

     2,403,000        150,685   

INTER RAO UES OJSCa

     290,300,000        204,900   

LSR Group OJSC SP GDRd

     34,257        162,515   

LUKOIL OAO

     63,644        4,082,430   

Magnit OJSC SP GDRd

     31,689        1,344,247   

Mechel OAO SP ADR

     23,448        128,729   

MegaFon OAO SP GDRa

     11,007        316,451   

MMC Norilsk Nickel OJSC

     6,007        1,060,752   

Mobile TeleSystems OJSC SP ADR

     65,184        1,348,657   

NovaTek OAO SP GDRd

     11,387        1,320,892   

Novolipetsk Steel OJSC SP GDRd

     8,418        161,541   

OGK-2 OJSC

     4,053,000        50,804   

PIK Groupa

     33,680        72,241   

Rosneft Oil Co. OJSC

     158,760        1,265,872   

Rostelecom OJSC

     149,580        599,832   

RusHydro OJSC

     17,114,000        384,976   

Sberbank of Russia

     1,365,800        4,666,972   

Severstal OAO

     21,430        238,861   

Sistema JSFC SP GDRd

     15,508        304,887   

Sollers OJSCa

     2,144        56,888   

Surgutneftegas OJSC

     906,700        850,091   

Tatneft OAO, Class S

     178,260        1,166,745   

TMK OAO SP GDRd

     8,647        128,927   

Uralkali OJSC

     166,400        1,237,017   

VTB Bank OJSC

     355,530,000        649,193   
   

 

 

  
      28,274,540   

SOUTH AFRICA — 7.20%

    

Absa Group Ltd.

     37,434        677,948   

Acucap Properties Ltd.

     20,919        108,364   
 

 

SCHEDULE OF INVESTMENTS

      17   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® CORE MSCI EMERGING MARKETS ETF

February 28, 2013

 

Security   Shares     Value  
   

Adcock Ingram Holdings Ltd.

     21,983      $ 136,905   

Adcorp Holdings Ltd.

     24,565        87,060   

Advtech Ltd.

     74,978        56,405   

Aeci Ltd.

     19,399        205,390   

African Bank Investments Ltd.

     96,557        309,923   

African Oxygen Ltd.

     22,985        56,536   

African Rainbow Minerals Ltd.

     13,748        292,896   

Anglo American Platinum Ltd.

     8,517        403,415   

AngloGold Ashanti Ltd.

     47,682        1,171,285   

ArcelorMittal South Africa Ltd.a

     26,359        85,046   

Aspen Pharmacare Holdings Ltd.a

     35,909        653,051   

Assore Ltd.

     3,944        148,350   

Astral Foods Ltd.

     9,593        96,222   

Aveng Ltd.

     58,012        212,065   

AVI Ltd.

     31,343        193,870   

Barloworld Ltd.

     27,073        278,493   

Bidvest Group Ltd.

     36,474        967,957   

Blue Label Telecoms Ltd.

     53,662        48,742   

Brait SEa

     49,895        179,946   

Capital Property Fund

     158,678        190,286   

Cashbuild Ltd.

     5,243        75,963   

Cipla Medpro South Africa Ltd.

     48,335        51,660   

City Lodge Hotels Ltd.

     6,859        83,017   

Clicks Group Ltd.

     32,320        213,421   

Clover Industries Ltd.

     38,912        73,724   

Coronation Fund Managers Ltd.

     28,242        148,533   

DataTec Ltd.

     25,357        137,655   

Discovery Holdings Ltd.

     34,965        292,651   

DRDGOLD Ltd.

     84,947        62,389   

Emira Property Fund

     59,287        97,989   

EOH Holdings Ltd.

     11,882        67,007   

Exxaro Resources Ltd.

     15,574        298,282   

Famous Brands Ltd.

     6,480        60,303   

FirstRand Ltd.

     376,618        1,294,891   

Foschini Group Ltd. (The)

     25,495        304,172   

Fountainhead Property Trust

     156,505        151,748   

Gold Fields Ltd.

     90,461        770,552   

Grindrod Ltd.

     47,695        94,670   

Group Five Ltd.

     17,389        67,830   

Growthpoint Properties Ltd.

     211,683        645,238   

Harmony Gold Mining Co. Ltd.

     49,858        315,228   

Hudaco Industries Ltd.

     6,557        72,493   

Hyprop Investments Ltd. Units

     14,877        119,958   
Security   Shares     Value  
   

Illovo Sugar Ltd.

     30,174      $ 103,240   

Impala Platinum Holdings Ltd.

     66,930        1,036,842   

Imperial Holdings Ltd.

     21,858        504,239   

Investec Ltd.

     29,361        209,457   

JD Group Ltd.

     16,376        71,653   

JSE Ltd.

     14,390        109,216   

Kumba Iron Ore Ltd.

     9,746        617,311   

Lewis Group Ltd.

     10,690        77,464   

Liberty Holdings Ltd.

     12,619        163,843   

Life Healthcare Group Holdings Ltd.

     120,093        451,719   

Massmart Holdings Ltd.

     13,045        271,144   

Metair Investments Ltd.

     10,455        38,393   

MMI Holdings Ltd.

     117,978        293,870   

Mondi Ltd.

     15,326        195,403   

Mpact Ltd.

     47,593        115,632   

Mr. Price Group Ltd.

     29,206        376,960   

MTN Group Ltd.

     211,431        4,137,569   

Murray & Roberts Holdings Ltd.a

     58,989        164,423   

Nampak Ltd.

     71,929        245,864   

Naspers Ltd. Class N

     49,084        3,188,242   

Nedbank Group Ltd.

     25,656        550,966   

Netcare Ltd.

     112,533        250,834   

Northam Platinum Ltd.

     27,645        120,714   

Omnia Holdings Ltd.

     7,189        120,181   

Pick n Pay Holdings Ltd.

     33,326        69,826   

Pick n Pay Stores Ltd.

     31,526        157,301   

Pinnacle Technology Holdings Ltd.

     28,531        65,821   

PPC Ltd.

     60,845        234,017   

Redefine Properties Ltd.

     364,340        399,151   

Remgro Ltd.

     51,868        982,710   

Resilient Property Income Fund Ltd.

     30,092        170,872   

Reunert Ltd.

     21,920        194,216   

RMB Holdings Ltd.

     84,392        385,058   

RMI Holdings Ltd.

     81,340        206,144   

Royal Bafokeng Platinum Ltd.a

     9,005        55,800   

SA Corporate Real Estate Fund Nominees Pty Ltd.

     135,583        60,745   

Sanlam Ltd.

     217,317        1,096,673   

Santam Ltd.

     3,833        79,029   

Sappi Ltd.a

     67,155        213,305   

Sasol Ltd.

     68,244        2,919,614   

Shoprite Holdings Ltd.

     52,363        1,003,176   

Sibanye Gold Ltd.a

     78,242        113,360   
 

 

18    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® CORE MSCI EMERGING MARKETS ETF

February 28, 2013

 

Security   Shares     Value  
   

SPAR Group Ltd. (The)

     19,820      $ 241,214   

Standard Bank Group Ltd.

     150,949        1,959,728   

Steinhoff International Holdings Ltd.a

     151,888        441,308   

Sun International Ltd.

     16,885        190,402   

Super Group Ltd.a

     37,410        88,389   

Sycom Property Fund

     17,451        54,457   

Telkom South Africa Ltd.a

     45,048        76,313   

Tiger Brands Ltd.

     19,780        669,055   

Tongaat Hulett Ltd.

     13,701        212,248   

Truworths International Ltd.

     53,741        557,313   

Vodacom Group Ltd.

     45,733        607,296   

Vukile Property Fund Ltd.

     48,345        96,661   

Wilson Bayly Holmes-Ovcon Ltd.

     6,676        115,325   

Woolworths Holdings Ltd.

     91,175        656,832   

Zeder Investments Ltd.

     131,781        49,935   
   

 

 

  
      39,898,002   

SOUTH KOREA — 14.82%

    

3S Korea Co. Ltd.a

     8,609        63,445   

Able C&C Co. Ltd.

     991        66,352   

Agabang & Co.

     3,809        30,604   

Ahnlab Inc.

     745        43,758   

AmorePacific Corp.

     419        396,238   

AmorePacific Group

     368        143,417   

Asia Cement Co. Ltd.

     721        50,272   

Asiana Airlines Inc.a

     20,260        111,326   

ATLASBX Co. Ltd.

     1,535        43,095   

Binggrae Co. Ltd.

     868        109,419   

Bioland Ltd.

     2,402        33,940   

BS Financial Group Inc.

     4,540        65,616   

Bukwang Pharmaceutical Co. Ltd.

     2,797        37,971   

Busan City Gas Co. Ltd.

     4,150        87,957   

Capro Corp.

     4,010        42,773   

Celltrion Inc.

     15,615        387,193   

Chabio & Diostech Co. Ltd.a

     8,966        89,840   

Cheil Industries Inc.

     952        77,544   

Cheil Worldwide Inc.a

     11,880        263,311   

Chong Kun Dang Pharm Corp.

     1,810        82,408   

CJ CGV Co. Ltd.

     2,500        97,199   

CJ CheilJedang Corp.

     1,036        369,786   

CJ Corp.

     1,935        267,155   

CJ E&M Corp.a

     2,523        87,376   

CJ Freshway Corp.

     1,043        32,894   

CJ O Shopping Co. Ltd.

     410        116,053   
Security   Shares     Value  
   

Com2uS Corp.a

     1,007      $ 46,173   

Cosmax Inc.

     1,810        76,891   

Coway Co. Ltd.a

     7,110        327,323   

CUROCOM Co. Ltd.a

     13,274        34,079   

Dae Won Kang Up Co. Ltd.

     3,960        30,720   

Daeduck Electronics Co.

     7,640        79,376   

Daeduck GDS Co. Ltd.

     4,490        79,199   

Daekyo Co. Ltd.

     6,670        39,300   

Daelim Industrial Co. Ltd.

     2,866        255,944   

Daesang Corp.

     2,620        79,121   

Daewoo Engineering & Construction Co. Ltd.a

     15,660        131,461   

Daewoo International Corp.

     6,150        217,812   

Daewoo Securities Co. Ltd.

     21,620        244,587   

Daewoo Shipbuilding & Marine Engineering Co. Ltd.

     12,760        354,109   

Daewoong Pharmaceutical Co. Ltd.

     772        39,569   

Daishin Securities Co. Ltd.

     6,070        58,019   

Daou Technology Inc.

     4,800        78,018   

Daum Communications Corp.

     1,781        157,240   

Dong-A Pharmaceutical Co. Ltd.

     962        110,164   

Dongbu Insurance Co. Ltd.

     5,404        236,806   

Dongbu Steel Co. Ltd.a

     22,710        82,528   

Dongkuk Steel Mill Co. Ltd.

     7,940        92,758   

Dongsuh Companies Inc.

     4,780        93,806   

Dongwon Industries Co. Ltd.

     255        67,116   

Dongyang Mechatronics Corp.

     4,900        53,171   

Doosan Corp.

     1,215        144,746   

Doosan Engine Co. Ltd.a

     5,670        41,890   

Doosan Heavy Industries & Construction Co. Ltd.

     6,289        254,679   

Doosan Infracore Co. Ltd.a

     14,050        205,010   

Duksan Hi-Metal Co. Ltd.a

     3,129        73,975   

DuzonBIzon Co. Ltd.

     3,290        36,460   

E-Mart Co. Ltd.

     2,700        551,059   

E1 Corp.

     696        40,880   

EG Corp.

     934        34,675   

EO Technics Co. Ltd.

     2,211        70,241   

Eugene Investment & Securities Co. Ltd.a

     34,180        82,071   

Fila Korea Ltd.

     1,308        71,148   

Foosung Co. Ltd.a

     9,560        41,539   

Gamevil Inc.a

     440        39,537   
 

 

SCHEDULE OF INVESTMENTS

      19   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® CORE MSCI EMERGING MARKETS ETF

February 28, 2013

 

Security   Shares     Value  
   

GemVax & Kael Co. Ltd.a

     3,551      $ 120,026   

Genic Co. Ltd.a

     959        27,012   

Global & Yuasa Battery Co. Ltd.

     2,050        91,915   

Golfzon Co. Ltd.

     785        41,757   

Grand Korea Leisure Co. Ltd.

     4,130        105,841   

Green Cross Corp.

     739        101,347   

Green Cross Holdings Corp.

     3,380        45,417   

GS Engineering & Construction Corp.

     4,720        238,871   

GS Global Corp.

     3,980        40,799   

GS Holdings Corp.

     6,707        432,340   

GS Home Shopping Inc.

     484        86,803   

Gwangju Shinsegae Co. Ltd.

     183        40,645   

Haansoft Inc.

     2,033        37,832   

Halla Climate Control Corp.

     4,990        114,747   

Halla Engineering & Construction Corp.

     5,820        40,311   

Hana Tour Service Inc.

     1,370        85,781   

Hanall Biopharma Co. Ltd.a

     4,670        40,756   

Handsome Co. Ltd.

     1,900        47,552   

Hanil Cement Co. Ltd.

     880        47,380   

Hanil E-Wha Co. Ltd.

     4,740        40,535   

Hanjin Heavy Industries & Construction Co. Ltd.a

     5,000        41,696   

Hanjin Shipping Co. Ltd.a

     12,370        125,091   

Hanjin Transportation Co. Ltd.

     4,250        80,461   

Hankook Shell Oil Co. Ltd.

     226        62,614   

Hankook Tire Co. Ltd.

     9,750        443,908   

Hankook Tire Worldwide Co. Ltd.

     2,570        44,620   

Hanmi Pharm Co. Ltd.a

     822        115,387   

Hansae Co. Ltd.

     2,400        34,022   

Hansol Chemical Co. Ltd.

     3,360        71,679   

Hansol Paper Co.

     7,420        74,349   

Hanssem Co. Ltd.

     1,900        34,392   

Hanwha Chemical Corp.

     11,460        210,610   

Hanwha Corp.

     7,050        227,225   

Hanwha General Insurance Co. Ltd.a

     6,790        36,119   

Hanwha Investment & Securities Co. Ltd.

     13,620        58,489   

Hanwha Life Insurance Co. Ltd.

     24,060        160,870   

HMC Investment Securities Co. Ltd.

     6,950        88,574   

Hotel Shilla Co. Ltd.

     4,408        193,975   

Huchems Fine Chemical Corp.

     3,560        80,384   

Huvis Corp.

     3,730        36,858   
Security   Shares     Value  
   

Hwa Shin Co. Ltd.

     3,890      $ 40,236   

Hy-Lok Corp.

     2,384        43,923   

Hyosung Corp.

     3,254        169,788   

Hyundai Corp.

     2,380        54,070   

Hyundai Department Store Co. Ltd.

     1,881        262,306   

Hyundai Development Co.

     7,810        178,512   

Hyundai Engineering & Construction Co. Ltd.

     8,864        559,922   

Hyundai Glovis Co. Ltd.

     1,633        309,913   

Hyundai Greenfood Co. Ltd.

     5,430        87,506   

Hyundai Heavy Industries Co. Ltd.

     5,348        1,059,401   

Hyundai Home Shopping Network Corp.

     342        42,954   

Hyundai Hysco Co. Ltd.

     4,460        148,691   

Hyundai Marine & Fire Insurance Co. Ltd.

     8,000        232,355   

Hyundai Merchant Marine Co. Ltd.a

     7,349        120,806   

Hyundai Mipo Dockyard Co. Ltd.

     1,670        181,987   

Hyundai Mobis Co. Ltd.

     8,543        2,469,429   

Hyundai Motor Co.

     19,755        3,977,180   

Hyundai Securities Co. Ltd.

     17,970        148,032   

Hyundai Steel Co.

     7,447        585,265   

Hyundai Wia Corp.

     1,909        280,314   

Iljin Display Co. Ltd.

     3,410        66,920   

Ilyang Pharmaceutical Co. Ltd.a

     1,620        48,473   

iMarketKorea Inc.

     3,290        71,705   

Industrial Bank of Korea

     23,330        282,246   

Interflex Co. Ltd.a

     983        40,942   

Interpark Corp.

     5,138        33,595   

ISU Chemical Co. Ltd.

     3,880        64,498   

JCEntertainment Corp.

     2,096        29,906   

Jeonbuk Bank

     24,430        121,380   

Jusung Engineering Co. Ltd.a

     10,735        53,039   

Kangwon Land Inc.

     12,530        380,127   

KB Financial Group Inc.

     48,530        1,770,309   

KCC Corp.

     582        153,183   

KEPCO Plant Service & Engineering Co. Ltd.

     1,470        71,272   

Kia Motors Corp.

     33,338        1,721,048   

KISWIRE Ltd.

     2,610        71,106   

KIWOOM Securities Co. Ltd.

     1,824        103,933   

Koh Young Technology Inc.

     2,547        71,977   

Kolao Holdings

     2,014        39,524   

Kolon Industries Inc.

     2,570        132,912   
 

 

20    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® CORE MSCI EMERGING MARKETS ETF

February 28, 2013

 

Security   Shares     Value  
   

Komipharm International Co. Ltd.a

     5,781      $ 57,659   

Korea Aerospace Industries Ltd.

     4,890        109,738   

Korea District Heating Corp.

     574        45,058   

Korea Electric Power Corp.a

     32,020        965,487   

Korea Exchange Banka

     37,220        261,235   

Korea Gas Corp.

     2,980        196,772   

Korea Investment Holdings Co. Ltd.

     5,290        224,971   

Korea Kolmar Co. Ltd.a

     1,560        44,445   

Korea Zinc Co. Ltd.

     1,120        388,909   

Korean Air Lines Co. Ltd.a

     4,890        199,606   

Korean Reinsurance Co.

     10,910        117,883   

KT Corp.

     4,370        144,480   

KT Skylife Co. Ltd.

     2,420        70,176   

KT&G Corp.

     13,696        976,456   

Kukdo Chemical Co. Ltd.

     1,110        41,773   

Kumho Petro Chemical Co. Ltd.

     1,754        177,372   

Kumho Tire Co. Inc.a

     9,900        113,827   

Kwang Dong Pharmaceutical Co. Ltd.

     6,670        42,318   

LG Chem Ltd.

     5,876        1,608,971   

LG Corp.

     12,255        745,831   

LG Display Co. Ltd.a

     29,770        839,908   

LG Electronics Inc.

     13,529        978,294   

LG Fashion Corp.

     2,880        78,993   

LG Hausys Ltd.

     1,408        103,504   

LG Household & Health Care Ltd.

     1,193        684,185   

LG Innotek Co. Ltd.a

     1,617        113,044   

LG International Corp.

     4,500        176,621   

LG Life Sciences Ltd.a

     1,690        87,713   

LG Uplus Corp.a

     28,990        227,567   

LIG Insurance Co. Ltd.

     5,630        121,405   

Lock & Lock Co. Ltd.

     3,290        84,010   

Lotte Chemical Corp.a

     2,234        491,023   

Lotte Chilsung Beverage Co. Ltd.

     90        120,019   

Lotte Confectionery Co. Ltd.

     100        168,910   

Lotte Samkang Co. Ltd.

     118        80,859   

Lotte Shopping Co. Ltd.

     1,421        510,488   

LS Corp.

     2,516        203,311   

LS Industrial Systems Co. Ltd.

     2,267        139,852   

Lumens Co. Ltd.a

     7,144        54,694   

Maeil Dairy Industry Co. Ltd.

     1,085        33,968   

Mando Corp.

     1,703        206,029   

Medipost Co. Ltd.a

     1,016        89,137   

Medy-Tox Inc.

     786        77,088   
Security   Shares     Value  
   

MegaStudy Co. Ltd.

     677      $ 49,330   

Melfas Inc.

     3,009        57,105   

Meritz Fire & Marine Insurance Co. Ltd.

     8,820        94,486   

Meritz Securities Co. Ltd.

     58,100        74,850   

Mirae Asset Securities Co. Ltd.

     3,520        141,245   

Modetour Network Inc.

     1,627        43,875   

Muhak Co. Ltd.

     3,012        40,055   

Namhae Chemical Corp.

     11,300        79,520   

Namyang Dairy Products Co. Ltd.

     92        85,388   

NCsoft Corp.

     1,912        252,502   

Neo Holdings Co. Ltd.a,c

     450        —   

Neowiz Games Corp.a

     1,854        33,045   

NEPES Corp.

     4,218        70,117   

Nexen Corp.

     594        40,868   

Nexen Tire Corp.

     5,690        81,712   

NH Investment & Securities Co. Ltd.

     9,240        45,653   

NHN Corp.

     5,101        1,238,947   

NICE Holdings Co. Ltd.

     1,334        89,687   

Nong Shim Holdings Co. Ltd.

     1,247        74,855   

NongShim Co. Ltd.

     441        117,293   

OCI Co. Ltd.

     2,187        350,421   

OCI Materials Co. Ltd.

     2,084        67,361   

ORION Corp.

     461        455,540   

Osstem Implant Co. Ltd.a

     1,506        48,261   

Ottogi Corp.

     181        42,123   

Paradise Co. Ltd.

     4,793        86,315   

Partron Co. Ltd.

     4,012        87,441   

Pharmicell Co. Ltd.a

     7,270        33,905   

Poongsan Corp.

     4,010        107,951   

POSCO

     8,214        2,681,550   

POSCO Chemtech Co. Ltd.

     345        38,743   

POSCO ICT Co. Ltd.

     5,924        42,126   

Pyeong Hwa Automotive Co. Ltd.

     2,624        39,257   

RNL BIO Co. Ltd.a

     13,810        32,968   

S&T Dynamics Co. Ltd.

     4,640        52,064   

S-Oil Corp.

     5,851        539,806   

S1 Corp.

     2,595        166,557   

Samchully Co. Ltd.

     643        67,695   

SamkwangGlass Co. Ltd.

     688        41,681   

Samsung C&T Corp.

     15,583        952,688   

Samsung Card Co. Ltd.

     5,850        210,429   

Samsung Electro-Mechanics Co. Ltd.

     7,451        657,143   
 

 

SCHEDULE OF INVESTMENTS

      21   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® CORE MSCI EMERGING MARKETS ETF

February 28, 2013

 

Security   Shares     Value  
   

Samsung Electronics Co. Ltd.

     13,877      $ 19,787,212   

Samsung Engineering Co. Ltd.

     3,938        560,065   

Samsung Fine Chemicals Co. Ltd.

     2,781        144,081   

Samsung Fire & Marine Insurance Co. Ltd.

     4,430        932,782   

Samsung Heavy Industries Co. Ltd.

     20,150        719,227   

Samsung Life Insurance Co. Ltd.

     7,734        742,813   

Samsung SDI Co. Ltd.

     4,261        546,976   

Samsung Securities Co. Ltd.

     7,625        404,197   

Samsung Techwin Co. Ltd.

     4,952        298,174   

Sapphire Technology Co. Ltd.a

     1,339        32,831   

SBS Media Holdings Co. Ltd.

     5,270        27,644   

SeAH Besteel Corp.

     1,900        58,694   

SeAH Steel Corp.

     380        31,900   

Sebang Co. Ltd.

     5,170        81,884   

Seegene Inc.a

     1,154        68,100   

Seobu T&Da

     1,739        33,726   

Seoul Semiconductor Co. Ltd.

     5,320        141,988   

SFA Engineering Corp.

     1,640        89,207   

Shinsegae Co. Ltd.

     910        190,349   

Shinsegae Food Co. Ltd.

     897        75,466   

Shinsegae International Co. Ltd.

     728        54,458   

Simm Tech Co. Ltd.

     8,404        69,230   

Sindoh Co. Ltd.

     860        51,624   

SK Broadband Co. Ltd.a

     20,081        83,916   

SK C&C Co. Ltd.

     2,798        266,150   

SK Chemicals Co. Ltd.

     2,122        112,290   

SK Gas Co. Ltd.

     520        36,545   

SK Holdings Co. Ltd.

     3,390        551,003   

SK Hynix Inc.a

     65,860        1,611,793   

SK Innovation Co. Ltd.

     7,629        1,254,092   

SK Networks Co. Ltd.

     20,140        148,610   

SK Securities Co. Ltd.

     66,750        66,576   

SK Telecom Co. Ltd.

     1,238        204,080   

SKC Co. Ltd.

     3,110        100,668   

SL Corp.

     2,760        38,616   

SM Entertainment Co.a

     1,858        74,812   

Soulbrain Co. Ltd.

     1,680        65,163   

Ssangyong Motor Co.a

     7,040        41,025   

STS Semiconductor & Telecommunications Co. Ltd.

     10,894        58,755   

STX Corp. Co. Ltd.

     11,790        82,097   

STX Engine Co. Ltd.a

     5,290        39,181   
Security   Shares     Value  
   

STX Offshore & Shipbuilding Co. Ltd.a

     11,360      $ 69,766   

STX Pan Ocean Co. Ltd.a

     13,920        62,412   

Sung Kwang Bend Co. Ltd.

     3,552        78,399   

Sungwoo Hitech Co. Ltd.

     4,386        57,720   

Suprema Inc.a

     2,228        40,534   

Taekwang Industrial Co. Ltd.

     58        55,438   

Taewoong Co. Ltd.a

     1,937        39,354   

Taeyoung Engineering & Construction Co. Ltd.

     10,020        51,357   

Taihan Electric Wire Co. Ltd.a

     11,971        42,895   

Tera Resource Co. Ltd.a

     29,499        35,007   

TK Corp.a

     1,985        46,562   

TONGYANG Life Insurance Co.

     7,350        74,666   

TONGYANG Securities Inc.

     18,250        69,607   

ViroMed Co. Ltd.a

     1,614        50,306   

WeMade Entertainment Co. Ltd.a

     1,034        45,263   

Wonik IPS Co. Ltd.a

     14,822        68,852   

Woori Finance Holdings Co. Ltd.

     48,240        585,834   

Woori Financial Co. Ltd.

     3,180        49,631   

Woori Investment & Securities Co. Ltd.

     17,710        208,531   

YG Entertainment Inc.a

     989        61,103   

Youlchon Chemical Co. Ltd.

     9,090        72,866   

Youngone Corp.

     2,990        103,549   

Youngone Holdings Co. Ltd.

     741        47,629   

Yuhan Corp.

     995        164,022   

Yungjin Pharmaceutical Co. Ltd.a

     20,790        33,312   
   

 

 

  
      82,188,579   

TAIWAN — 11.40%

    

A-DATA Technology Co. Ltd.

     38,000        47,906   

Ability Enterprise Co. Ltd.

     55,000        51,540   

AcBel Polytech Inc.

     62,000        49,113   

Accton Technology Corp.

     102,000        54,152   

Acer Inc.a

     301,000        268,365   

Advanced Semiconductor Engineering Inc.

     771,000        639,327   

Advantech Co. Ltd.

     34,000        151,282   

Airtac International Group

     9,000        52,483   

ALI Corp.

     38,000        44,063   

Alpha Networks Inc.

     57,000        37,467   

Altek Corp.

     82,000        48,371   

Ambassador Hotel Ltd. (The)

     40,000        41,056   

AmTRAN Technology Co. Ltd.

     119,000        82,832   
 

 

22    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® CORE MSCI EMERGING MARKETS ETF

February 28, 2013

 

Security   Shares     Value  
   

Apex Biotechnology Corp.

     20,000      $ 52,787   

Ardentec Corp.

     71,000        47,387   

Asia Cement Corp.

     242,000        301,822   

Asia Optical Co. Inc.a

     40,000        41,326   

Asia Polymer Corp.

     48,000        40,935   

ASUSTeK Computer Inc.

     84,000        1,019,332   

AU Optronics Corp.a

     987,000        429,181   

Bank of Kaohsiung Co. Ltd.a

     296,000        95,086   

BES Engineering Corp.

     302,000        92,229   

Capital Securities Corp.

     234,000        88,736   

Career Technology (MFG.) Co. Ltd.

     37,000        45,835   

Catcher Technology Co. Ltd.

     73,000        329,732   

Cathay Financial Holding Co. Ltd.

     873,000        1,106,460   

Cathay Real Estate Development Co. Ltd.

     77,000        39,452   

Chailease Holding Co. Ltd.

     87,000        243,992   

Chang Hwa Commercial Bank Ltd.

     591,000        345,637   

Cheng Loong Corp.

     215,000        92,040   

Cheng Shin Rubber Industry Co. Ltd.

     223,000        605,862   

Cheng Uei Precision Industry Co. Ltd.

     44,000        83,205   

Chia Hsin Cement Corp.

     185,000        86,992   

Chicony Electronics Co. Ltd.

     58,000        151,909   

Chin-Poon Industrial Co. Ltd.

     47,000        51,172   

China Airlines Ltd.a

     358,000        147,223   

China Bills Finance Corp.

     113,000        44,375   

China Development Financial Holding Corp.a

     1,646,000        489,919   

China Life Insurance Co. Ltd.a

     221,000        211,565   

China Manmade Fibers Corp.a

     203,000        69,112   

China Metal Products Co. Ltd.

     48,000        55,497   

China Motor Co. Ltd.

     47,000        43,885   

China Petrochemical Development Corp.

     232,900        144,059   

China Steel Chemical Corp.

     14,000        66,304   

China Steel Corp.

     1,402,000        1,285,436   

China Synthetic Rubber Corp.

     71,000        79,098   

Chinatrust Financial Holding Co. Ltd.

     1,427,000        844,179   

Chipbond Technology Corp.

     60,000        124,383   

Chong Hong Construction Co.

     14,000        47,003   

Chroma ATE Inc.

     43,000        98,707   

Chung Hung Steel Corp.a

     231,000        77,710   

Chunghwa Telecom Co. Ltd.

     453,000        1,407,871   

Clevo Co.

     64,175        90,098   
Security   Shares     Value  
   

CMC Magnetics Corp.a

     336,000      $ 57,196   

Compal Communications Inc.a

     36,000        37,375   

Compal Electronics Inc.

     548,000        383,294   

Compeq Manufacturing Co. Ltd.

     177,000        65,331   

Continental Holdings Corp.

     195,000        75,919   

Coretronic Corp.

     101,000        81,027   

Coxon Precise Industrial Co. Ltd.

     25,000        58,231   

CSBC Corp. Taiwan

     83,000        49,521   

CTCI Corp.

     67,000        133,474   

Cyberlink Corp.

     18,000        55,214   

CyberTAN Technology Inc.

     49,000        41,292   

D-Link Corp.

     84,000        51,816   

Delta Electronics Inc.

     227,000        845,516   

Depo Auto Parts Ind Co. Ltd.

     23,000        55,821   

Dynapack International Technology Corp.

     14,000        51,910   

E Ink Holdings Inc.

     115,000        88,189   

E.Sun Financial Holding Co. Ltd.

     530,000        317,109   

Eclat Textile Co. Ltd.

     18,000        74,023   

Elan Microelectronics Corp.

     47,000        99,017   

Elite Material Co. Ltd.

     42,000        42,331   

Elite Semiconductor Memory Technology Inc.a

     112,000        96,270   

Entire Technology Co. Ltd.

     28,000        36,054   

Epistar Corp.

     102,000        198,042   

Eternal Chemical Co. Ltd.

     95,000        83,099   

EVA Airways Corp.a

     198,000        124,474   

Evergreen International Storage & Transport Corp.

     59,000        39,974   

Evergreen Marine Corp. Ltd.a

     205,000        130,947   

Everlight Chemical Industrial Corp.

     108,000        78,998   

Everlight Electronics Co. Ltd.

     42,000        59,744   

Far Eastern Department Stores Co. Ltd.

     119,000        112,516   

Far Eastern International Bank Ltd.

     229,000        92,630   

Far Eastern New Century Corp.

     389,000        431,399   

Far EasTone Telecommunications Co. Ltd.

     186,000        430,728   

Faraday Technology Corp.

     41,000        46,436   

Farglory Land Development Co. Ltd.

     31,000        58,831   

Federal Corp.

     60,000        42,776   

Feng Hsin Iron & Steel Co. Ltd.

     37,000        64,480   

Feng Tay Enterprise Co. Ltd.

     38,000        49,507   
 

 

SCHEDULE OF INVESTMENTS

      23   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® CORE MSCI EMERGING MARKETS ETF

February 28, 2013

 

Security   Shares     Value  
   

Firich Enterprises Co. Ltd.

     27,000      $ 37,315   

First Financial Holding Co. Ltd.

     833,000        530,690   

FLEXium Interconnect Inc.

     24,000        75,398   

Forhouse Corp.

     85,000        42,978   

Formosa Chemicals & Fibre Corp.

     390,000        993,848   

Formosa Epitaxy Inc.a

     63,000        45,976   

Formosa Petrochemical Corp.

     141,000        392,109   

Formosa Plastics Corp.

     492,000        1,243,827   

Formosa Taffeta Co. Ltd.

     64,000        62,023   

Formosan Rubber Group Inc.

     114,000        83,387   

Foxconn Technology Co. Ltd.

     88,000        241,754   

Fubon Financial Holding Co. Ltd.

     691,000        931,691   

G Tech Optoelectronics Corp.

     21,000        50,330   

Gemtek Technology Corp.

     39,000        50,218   

Genius Electronic Optical Co. Ltd.

     8,000        53,663   

Getac Technology Corp.

     61,000        30,843   

Giant Manufacturing Co. Ltd.

     32,000        175,282   

Gigabyte Technology Co. Ltd.

     85,000        75,211   

Gigastorage Corp.

     55,000        43,197   

Gintech Energy Corp.a

     46,000        43,261   

Global Mixed Mode Technology Inc.

     12,000        38,427   

Global Unichip Corp.

     17,000        54,324   

Gloria Material Technology Corp.

     64,000        50,373   

Goldsun Development & Construction Co. Ltd.

     220,000        86,023   

Grand Pacific Petrochemical Corp.

     143,000        74,473   

Grape King Inc.

     23,000        60,472   

Great Wall Enterprise Co. Ltd.

     56,000        50,589   

Greatek Electronics Inc.

     42,000        34,049   

HannsTouch Solution Inc.a

     111,000        34,385   

Hermes Microvision Inc.

     4,000        81,439   

Hey Song Corp.

     53,000        67,888   

Highwealth Construction Corp.

     30,400        63,533   

Hiwin Technologies Corp.

     22,000        181,686   

Ho Tung Chemical Corp.a

     175,000        80,520   

Holy Stone Enterprise Co. Ltd.

     105,000        93,085   

Hon Hai Precision Industry Co. Ltd.

     1,256,000        3,458,959   

Hotai Motor Co. Ltd.

     30,000        228,541   

HTC Corp.

     91,000        849,679   

Hua Nan Financial Holdings Co. Ltd.

     694,000        405,875   

Huaku Development Co. Ltd.

     24,000        59,461   

Huang Hsiang Construction Co.

     14,000        35,252   
Security   Shares     Value  
   

Hung Poo Real Estate Development Corp.

     49,000      $ 50,459   

Hung Sheng Construction Co. Ltd.

     137,000        94,669   

ICP Electronics Inc.

     29,200        38,534   

Innolux Corp.a

     873,000        482,605   

International Games System Co. Ltd.

     15,000        51,573   

Inventec Corp.

     256,000        101,825   

ITEQ Corp.

     47,000        53,469   

Jih Sun Financial Holdings Co. Ltd.

     143,000        43,141   

Kee Tai Properties Co. Ltd.

     76,000        54,310   

Kenda Rubber Industrial Co. Ltd.

     50,000        74,916   

Kerry TJ Logistics Co. Ltd.

     30,000        47,023   

Kindom Construction Co.

     53,000        46,092   

King Slide Works Co. Ltd.

     6,000        39,438   

King Yuan Electronics Co. Ltd.

     153,000        99,537   

King’s Town Banka

     98,000        86,879   

King’s Town Construction Co. Ltd.

     33,000        34,984   

Kinpo Electronics Inc.

     240,000        56,387   

Kinsus Interconnect Technology Corp.

     29,000        91,399   

Kuoyang Construction Co. Ltd.

     82,000        47,680   

Largan Precision Co. Ltd.

     13,000        350,564   

LCY Chemical Corp.

     66,000        84,095   

Lealea Enterprise Co. Ltd.

     129,000        48,267   

Lien Hwa Industrial Corp.

     64,000        41,744   

LITE-ON IT Corp.

     49,000        53,763   

Lite-On Technology Corp.

     267,000        411,752   

Long Bon International Co. Ltd.a

     38,000        44,191   

Macronix International Co. Ltd.

     481,000        137,005   

Makalot Industrial Co. Ltd.

     15,000        50,158   

Masterlink Securities Corp.

     159,000        51,934   

MediaTek Inc.

     143,000        1,607,554   

Medigen Biotechnology Corp.a

     7,000        50,613   

Mega Financial Holding Co. Ltd.

     995,000        820,041   

Mercuries & Associates Ltd.

     36,000        32,400   

Merida Industry Co. Ltd.

     22,000        107,158   

Merry Electronics Co. Ltd.

     28,000        43,652   

Micro-Star International Co. Ltd.

     100,000        47,360   

Microbio Co. Ltd.

     36,000        44,353   

MIN AIK Technology Co. Ltd.

     17,000        53,006   

MiTAC International Corp.

     142,000        53,131   

Motech Industries Inc.a

     42,000        42,968   

MStar Semiconductor Inc.

     25,000        187,922   
 

 

24    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® CORE MSCI EMERGING MARKETS ETF

February 28, 2013

 

Security   Shares     Value  
   

Nan Kang Rubber Tire Co. Ltd.

     72,000      $ 83,124   

Nan Ya Plastics Corp.

     586,000        1,123,941   

Nan Ya Printed Circuit Board Corp.

     31,000        35,476   

National Petroleum Co. Ltd.

     65,000        65,731   

Neo Solar Power Corp.a

     59,000        43,057   

Novatek Microelectronics Corp. Ltd.

     60,000        250,788   

OptoTech Corp.

     112,000        45,492   

Oriental Union Chemical Corp.

     69,000        76,637   

Pacific Hospital Supply Co. Ltd.

     34,000        100,740   

Pan-International Industrial Corp.a

     47,000        39,607   

PChome Online Inc.

     8,000        39,910   

Pegatron Corp.a

     190,000        256,181   

Phihong Technology Co. Ltd.

     54,000        46,871   

Phison Electronics Corp.

     15,000        112,753   

Phytohealth Corp.a

     39,000        67,308   

Pixart Imaging Inc.

     20,000        43,686   

Pou Chen Corp.

     281,000        285,106   

Powertech Technology Inc.

     90,000        130,905   

President Chain Store Corp.

     68,000        375,912   

President Securities Corp.a

     85,000        49,854   

Prince Housing & Development Corp.

     112,000        76,639   

Qisda Corp.a

     309,000        83,743   

Quanta Computer Inc.

     315,000        672,122   

Radiant Opto-Electronics Corp.

     51,000        183,945   

Radium Life Tech Co. Ltd.

     61,000        53,461   

Realtek Semiconductor Corp.

     64,000        152,306   

Rich Development Co. Ltd.

     136,000        72,661   

Richtek Technology Corp.

     15,000        91,770   

Ritek Corp.a

     558,000        70,534   

Ruentex Development Co. Ltd.

     67,000        146,573   

Ruentex Industries Ltd.

     57,000        137,185   

Sampo Corp.

     217,000        73,512   

Sanyang Industry Co. Ltd.a

     77,000        63,201   

ScinoPharm Taiwan Ltd.

     28,000        68,711   

Senao International Co. Ltd.

     8,000        25,915   

Sercomm Corp.

     34,000        50,083   

Shih Wei Navigation Co. Ltd.

     95,000        67,888   

Shihlin Electric & Engineering Corp.

     36,000        43,564   

Shihlin Paper Corp.a

     23,000        37,446   

Shin Kong Financial Holding Co. Ltd.a

     725,000        219,701   

Shin Zu Shing Co. Ltd.

     18,000        57,277   

Shining Building Business Co. Ltd.a

     44,000        35,225   

Shinkong Synthetic Fibers Corp.

     250,000        80,057   
Security   Shares     Value  
   

Shinkong Textile Co. Ltd.

     32,000      $ 41,097   

Sigurd Microelectronics Corp.

     93,000        85,581   

Silicon Integrated Systems Corp.a

     175,000        61,644   

Siliconware Precision Industries Co. Ltd.

     383,000        411,189   

Silitech Technology Corp.

     27,000        50,238   

Simplo Technology Co. Ltd.

     38,000        168,439   

Sincere Navigation Corp.

     54,000        48,600   

Sino-American Silicon Products Inc.

     67,000        90,112   

SinoPac Financial Holdings Co. Ltd.

     809,000        368,143   

Sinyi Realty Co.

     15,000        23,638   

Solar Applied Materials Technology Corp.

     66,000        80,313   

Sonix Technology Co. Ltd.

     35,000        50,377   

St.Shine Optical Co. Ltd.

     6,000        103,349   

Standard Foods Corp.

     32,000        92,872   

Synnex Technology International Corp.

     152,000        307,417   

Ta Chen Stainless Pipe Co. Ltd.

     221,000        110,252   

Ta Chong Bank Ltd.a

     153,000        55,183   

Taichung Commercial Bank Co. Ltd.

     214,000        76,824   

Taiflex Scientific Co. Ltd.

     31,000        38,663   

Tainan Spinning Co. Ltd.

     91,000        44,631   

Taishin Financial Holdings Co. Ltd.

     948,000        386,658   

Taiwan Acceptance Corp.

     17,000        43,780   

Taiwan Business Bank Ltd.a

     446,000        139,213   

Taiwan Cement Corp.

     390,000        500,211   

Taiwan Cogeneration Corp.

     67,000        46,072   

Taiwan Cooperative Financial Holding Co. Ltd.

     698,000        399,980   

Taiwan Fertilizer Co. Ltd.

     84,000        203,583   

Taiwan Glass Industry Corp.

     117,000        110,625   

Taiwan Hon Chuan Enterprise Co. Ltd.

     27,000        67,895   

Taiwan Land Development Corp.a

     230,538        87,424   

Taiwan Life Insurance Co. Ltd.a

     55,000        44,217   

Taiwan Mobile Co. Ltd.

     200,000        697,757   

Taiwan PCB Techvest Co. Ltd.

     28,000        39,074   

Taiwan Prosperity Chemical Corp.

     24,000        31,672   

Taiwan Secom Co. Ltd.

     23,000        51,712   

Taiwan Semiconductor Manufacturing Co. Ltd.

     3,056,000        10,764,735   

Taiwan Surface Mounting Technology Co. Ltd.

     36,000        51,695   
 

 

SCHEDULE OF INVESTMENTS

      25   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® CORE MSCI EMERGING MARKETS ETF

February 28, 2013

 

Security   Shares     Value  
   

Taiwan TEA Corp.

     91,000      $ 49,999   

Taiwan-Sogo Shinkong Security Corp.

     43,000        51,818   

Tatung Co. Ltd.a

     303,000        81,606   

Teco Electric and Machinery Co. Ltd.

     242,000        193,329   

Test Research Inc.

     23,000        40,315   

Test-Rite International Co. Ltd.

     69,000        50,936   

Ton Yi Industrial Corp.

     84,000        50,400   

Tong Hsing Electronic Industries Ltd.

     19,000        80,377   

Tong Yang Industry Co. Ltd.

     48,000        44,171   

Topco Scientific Co. Ltd.

     57,000        98,566   

TPK Holding Co. Ltd.

     30,000        568,318   

Transcend Information Inc.

     18,000        51,270   

Tripod Technology Corp.

     64,000        132,675   

Tsann Kuen Enterprise Co. Ltd.

     18,000        36,101   

TSRC Corp.

     69,000        141,877   

TTY Biopharm Co. Ltd.

     21,000        75,742   

Tung Ho Steel Enterprise Corp.

     93,000        90,911   

TXC Corp.

     36,000        56,791   

U-Ming Marine Transport Corp.

     52,000        80,630   

Uni-President Enterprises Co.

     511,000        955,977   

Unimicron Technology Corp.

     157,000        149,239   

Union Bank of Taiwana

     104,000        41,016   

Unitech Printed Circuit Board Corp.

     244,000        79,945   

United Microelectronics Corp.

     1,574,000        588,927   

Unity Opto Technology Co. Ltd.a

     45,000        42,472   

UPC Technology Corp.

     93,000        51,882   

USI Corp.

     106,000        83,431   

Vanguard International Semiconductor Corp.

     103,000        90,444   

Visual Photonics Epitaxy Co. Ltd.

     37,000        40,160   

Wah Lee Industrial Corp.

     38,000        53,734   

Walsin Lihwa Corp.a

     476,000        163,659   

Wan Hai Lines Ltd.a

     132,000        71,414   

Waterland Financial Holdings Co. Ltd.

     238,000        79,423   

Wei Chuan Foods Corp.

     60,000        88,989   

Win Semiconductors Corp.

     75,000        77,107   

Winbond Electronics Corp.a

     413,000        77,403   

Wintek Corp.a

     203,000        95,798   

Wisdom Marine Lines Co. Ltd.

     38,000        53,158   

Wistron Corp.

     250,000        278,091   

Wistron NeWeb Corp.

     27,000        48,327   

Wowprime Corp.

     4,000        58,045   

WPG Holdings Co. Ltd.

     168,000        190,842   
Security   Shares     Value  
   

WT Microelectronics Co. Ltd.

     53,000      $ 64,047   

Xxentria Technology Materials Corp.

     22,000        41,751   

Yageo Corp.a

     288,000        87,565   

Yang Ming Marine Transport Corp.a

     182,000        86,195   

Yem Chio Co. Ltd.

     132,955        86,944   

YFY Inc.

     180,000        92,225   

Yieh Phui Enterprise Co. Ltd.

     249,000        77,302   

Young Fast Optoelectronics Co. Ltd.

     20,000        37,888   

Youngtek Electronics Corp.

     20,000        48,472   

Yuanta Financial Holding Co. Ltd.

     1,030,000        532,941   

Yulon Motor Co. Ltd.

     109,000        195,099   

YungShin Global Holding Corp.

     30,000        42,624   

Yungtay Engineering Co. Ltd.

     41,000        77,394   

Zhen Ding Technology Holding Ltd.

     24,000        54,445   

Zinwell Corp.

     58,000        50,147   
   

 

 

  
      63,198,403   

THAILAND — 2.92%

    

Advanced Information Service PCL NVDR

     150,700        1,048,568   

Airports of Thailand PCL NVDR

     50,200        199,113   

Amata Corp. PCL NVDR

     75,900        65,057   

Asian Property Development PCL NVDR

     129,200        44,731   

Bangchak Petroleum PCL NVDR

     38,400        50,017   

Bangkok Bank PCL Foreign

     105,800        825,062   

Bangkok Bank PCL NVDR

     71,500        526,336   

Bangkok Chain Hospital PCL NVDR

     160,200        64,080   

Bangkok Dusit Medical Services PCL NVDR

     38,400        192,323   

Bangkok Expressway PCL NVDR

     56,800        82,097   

Bangkok Land PCL NVDR

     1,119,100        78,995   

Bangkok Life Assurance PCL NVDR

     34,500        75,668   

Bank of Ayudhya PCL NVDR

     333,300        386,516   

Banpu PCL NVDR

     14,450        189,914   

BEC World PCL NVDR

     126,100        285,050   

BTS Group Holdings PCL NVDR

     429,800        118,466   

Bumrungrad Hospital PCL NVDR

     48,200        141,765   

Central Pattana PCL NVDR

     86,400        278,803   

Central Plaza Hotel PCL NVDR

     72,200        93,435   

Charoen Pokphand Foods PCL NVDR

     396,700        433,370   

CP All PCL NVDR

     540,700        858,759   

Delta Electronics (Thailand) PCL NVDR

     70,600        90,178   
 

 

26    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® CORE MSCI EMERGING MARKETS ETF

February 28, 2013

 

Security   Shares     Value  
   

Dynasty Ceramic PCL NVDR

     26,700      $ 51,829   

Esso (Thailand) PCL NVDR

     214,300        73,474   

Glow Energy PCL NVDR

     63,900        184,719   

Hana Microelectronics PCL NVDR

     127,200        107,960   

Hemaraj Land and Development PCL NVDR

     669,600        95,432   

Indorama Ventures PCL NVDR

     190,200        152,160   

IRPC PCL NVDR

     1,304,600        186,810   

Jasmine International PCL NVDR

     488,700        110,882   

Kasikornbank PCL Foreign

     146,400        1,072,780   

Kasikornbank PCL NVDR

     90,000        641,345   

Khon Kaen Sugar Industry PCL NVDR

     85,000        44,286   

Kiatnakin Bank PCL NVDR

     57,200        117,765   

Krung Thai Bank PCL NVDR

     462,500        396,429   

LPN Development PCL NVDR

     105,900        88,992   

Major Cineplex Group PCL NVDR

     126,100        90,283   

Polyplex PCL NVDR

     88,100        42,347   

Pruksa Real Estate PCL NVDR

     86,200        86,924   

PTT Exploration & Production PCL NVDR

     178,901        950,130   

PTT Global Chemical PCL NVDR

     208,000        552,336   

PTT PCL NVDR

     106,700        1,255,294   

Quality Houses PCL NVDR

     704,100        93,722   

Sansiri PCL NVDR

     452,600        76,067   

Siam Cement PCL Foreign

     37,500        600,000   

Siam Cement PCL NVDR

     16,800        262,024   

Siam Commercial Bank PCL NVDR

     222,500        1,331,260   

Siam Global House PCL NVDR

     51,500        44,143   

Siam Makro PCL NVDR

     11,200        182,212   

Sino-Thai Engineering & Construction PCL NVDR

     83,700        105,504   

Sri Trang Agro-Industry PCL NVDR

     83,700        46,141   

Supalai PCL NVDR

     64,300        46,901   

Thai Airways International PCL NVDRa

     100,700        82,929   

Thai Oil PCL NVDR

     113,900        268,000   

Thai Tap Water Supply PCL NVDR

     172,700        61,533   

Thai Vegetable Oil PCL NVDR

     61,300        51,513   

Thaicom PCL NVDRa

     72,300        68,047   

Thanachart Capital PCL NVDR

     106,000        160,336   

Thoresen Thai Agencies PCL NVDR

     108,640        59,159   

Ticon Industrial Connection PCL NVDR

     101,900        74,327   

TISCO Financial Group PCL NVDR

     52,000        94,387   
Security   Shares     Value  
   

TPI Polene PCL NVDR

     67,400      $ 33,530   
   

 

 

  
      16,172,215   

TURKEY — 2.03%

    

Akbank TAS

     232,417        1,129,361   

Akfen Holding ASa,b

     9,483        56,414   

Akmerkez Gayrimenkul Yatirim Ortakligi AS

     3,105        37,720   

Aksa Akrilik Kimya Sanayii AS

     15,956        45,243   

Albaraka Turk Katilim Bankasi ASa,b

     51,614        53,088   

Anadolu Efes Biracilik ve Malt Sanayii AS

     26,883        403,548   

Arcelik AS

     29,024        183,957   

Aselsan Elektronik Sanayi ve TAS

     16,398        92,992   

Asya Katilim Bankasi ASa

     89,372        109,811   

BIM Birlesik Magazalar AS

     13,347        632,603   

Bizim Toptan Satis Magazalari ASb

     2,739        41,420   

Cimsa Cimento Sanayi ve TASb

     9,715        56,443   

Coca-Cola Icecek AS

     8,024        189,598   

Dogan Sirketler Grubu Holding ASa

     136,526        81,977   

Dogan Yayin Holding ASa

     141,789        66,218   

Dogus Otomotiv Servis ve TAS

     8,091        41,115   

Emlak Konut Gayrimenkul Yatirim Ortakligi AS

     79,729        129,435   

Enka Insaat ve Sanayi AS

     47,760        145,512   

Eregli Demir ve Celik Fabrikalari TAS

     124,503        160,591   

Ford Otomotiv Sanayi AS

     8,982        105,867   

Haci Omer Sabanci Holding AS

     107,291        584,578   

Ipek Dogal Enerji Kaynaklari Ve Uretim ASa

     12,385        35,530   

Is Gayrimenkul Yatirim Ortakligi AS

     59,196        48,709   

Kardemir Karabuk Demir Celik Sanayi ve TAS Class D

     99,878        86,071   

KOC Holding AS

     86,200        453,369   

Koza Altin Isletmeleri AS

     4,591        108,735   

Koza Anadolu Metal Madencilik Isletmeleri ASa

     26,071        69,720   

Sekerbank TASa

     72,444        76,123   

Selcuk Ecza Deposu Ticaret ve Sanayi AS

     30,557        35,337   

TAV Havalimanlari Holding ASa

     23,080        140,509   

Tofas Turk Otomobil Fabrikasi AS

     17,129        106,184   

Trakya Cam Sanayii ASa

     32,770        50,103   

Turk Hava Yollari AOa

     58,624        243,146   
 

 

SCHEDULE OF INVESTMENTS

      27   

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® CORE MSCI EMERGING MARKETS ETF

February 28, 2013

 

Security   Shares     Value  
   

Turk Telekomunikasyon AS

     71,069      $ 293,182   

Turkcell Iletisim Hizmetleri ASa

     98,007        651,146   

Turkiye Garanti Bankasi AS

     297,983        1,424,765   

Turkiye Halk Bankasi AS

     81,444        805,995   

Turkiye Is Bankasi AS Class C

     212,833        759,674   

Turkiye Petrol Rafinerileri AS

     16,295        456,602   

Turkiye Sinai Kalkinma Bankasi AS

     99,026        127,729   

Turkiye Sise ve Cam Fabrikalari AS

     62,777        102,613   

Turkiye Vakiflar Bankasi TAO Class D

     98,182        301,317   

Ulker Biskuvi Sanayi AS

     9,485        59,853   

Yapi Kredi Sigorta AS

     4,841        53,560   

Yapi ve Kredi Bankasi ASa

     125,999        355,864   

Yazicilar Holding AS

     7,667        82,056   
   

 

 

  
      11,275,383   
   

 

 

  

TOTAL COMMON STOCKS

    

(Cost: $472,482,902)

       478,501,566   

INVESTMENT COMPANIES — 6.45%

  

  

INDIA — 6.45%

    

iShares MSCI India Index Funde

     1,352,019        33,813,995   

iShares MSCI India Small Cap Index Funde

     51,223        1,133,565   

iShares S&P India Nifty 50 Index Funde

     34,250        818,233   
   

 

 

  
      35,765,793   
   

 

 

  

TOTAL INVESTMENT COMPANIES

    

(Cost: $37,530,646)

       35,765,793   

PREFERRED STOCKS — 6.94%

    

BRAZIL — 5.80%

    

AES Tiete SA

     11,800        121,694   

Banco ABC Brasil SA

     10,600        77,740   

Banco Bradesco SA

     244,800        4,373,242   

Banco Daycoval SA

     12,600        70,103   

Banco do Estado do Rio Grande do Sul SA Class B

     24,100        220,631   

Banco Industrial e Comercial SA

     14,300        44,120   

Banco Panamericano SA

     26,400        88,129   

Banco Pine SA

     7,200        52,258   

Bradespar SA

     28,700        421,696   

Braskem SA Class A

     20,700        152,651   

Centrais Eletricas Brasileiras SA Class B

     26,600        168,714   
Security   Shares     Value  
   

Centrais Eletricas Santa Catarina SA

     3,400      $ 40,241   

Companhia Brasileira de Distribuicao Grupo Pao de Acucar Class A

     15,200        762,652   

Companhia de Bebidas das Americas

     94,100        4,178,838   

Companhia de Ferro Ligas da Bahia — Ferbasa

     8,400        49,794   

Companhia Energetica de
Minas Gerais

     59,400        703,931   

Companhia Energetica de Sao Paulo Class B

     20,600        191,090   

Companhia Energetica do Ceara Class A

     3,000        65,247   

Companhia Paranaense de Energia Class B

     13,200        193,617   

Contax Participacoes SA

     6,500        85,512   

Eletropaulo Metropolitana Eletricidade de Sao Paulo SA

     15,600        94,290   

Eucatex SA Industria e Comercio

     11,300        47,152   

Gerdau SA

     107,500        894,429   

GOL Linhas Aereas Inteligentes SA

     11,500        73,115   

Itau Unibanco Holding SA

     287,200        5,094,383   

Itausa — Investimentos Itau SA

     323,500        1,693,503   

Klabin SA

     54,900        369,591   

Lojas Americanas SA

     51,300        468,605   

Marcopolo SA

     25,300        169,554   

Metalurgica Gerdau SA

     36,400        385,706   

Oi SA

     106,300        395,177   

Parana Banco SA

     5,800        40,043   

Petroleo Brasileiro SA

     523,800        4,400,545   

Randon Implementos e Participacoes SA

     20,400        121,754   

Saraiva Livreiros Editores SA

     5,100        72,846   

Telefonica Brasil SA

     36,800        970,488   

Usinas Siderurgicas de Minas Gerais SA Class A

     48,600        240,898   

Vale SA Class A

     247,700        4,579,149   
   

 

 

  
      32,173,128   

CHILE — 0.15%

    

Embotelladora Andina SA Class B

     26,560        179,399   

Sociedad Quimica y Minera de Chile SA Series B

     11,931        662,088   
   

 

 

  
      841,487   
 

 

28    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Schedule of Investments (Unaudited) (Continued)

iSHARES® CORE MSCI EMERGING MARKETS ETF

February 28, 2013

 

Security   Shares     Value  
   

COLOMBIA — 0.23%

    

Banco Davivienda SA

     11,931      $ 170,285   

Bancolombia SA

     43,094        707,676   

Grupo Argos SA

     12,194        152,536   

Grupo Aval Acciones y Valores SA

     186,557        132,618   

Grupo de Inversiones Suramericana SA

     6,137        134,396   
   

 

 

  
      1,297,511   

RUSSIA — 0.25%

    

AK Transneft OAO

     191        428,308   

Sberbank of Russia

     127,800        310,452   

Surgutneftegas OJSC

     848,500        624,703   
   

 

 

  
      1,363,463   

SOUTH AFRICA — 0.01%

    

Allied Electronics Corp. Ltd.

     34,466        81,049   
   

 

 

  
      81,049   

SOUTH KOREA — 0.50%

    

Daishin Securities Co. Ltd.

     7,850        47,702   

Hyundai Motor Co. Ltd.

     2,468        165,016   

Hyundai Motor Co. Ltd. Series 2

     4,558        327,909   

LG Chem Ltd.

     908        80,417   

Samsung Electronics Co. Ltd.

     2,620        2,129,245   
   

 

 

  
      2,750,289   
   

 

 

  

TOTAL PREFERRED STOCKS

    

(Cost: $38,468,921)

       38,506,927   

RIGHTS — 0.01%

    

BRAZIL — 0.00%

    

Banco Pine SA Preferreda

     403        14   

Companhia de Bebidas das Americasa

     21        —   

Companhia de Bebidas das Americas Preferreda

     114        —   
   

 

 

  
      14   

CHILE — 0.01%

    

Cencosud SAa

     12,813        9,957   

Enersis SAa

     787,573        10,655   
   

 

 

  
      20,612   

MALAYSIA — 0.00%

    

Mah Sing Group Bhda

     21,766        4,719   
   

 

 

  
      4,719   
Security   Shares     Value  
   

SOUTH KOREA — 0.00%

    

Hanjin Heavy Industries & Construction Co. Ltd.a

     1,740      $ 3,021   
   

 

 

  
      3,021   
   

 

 

  

TOTAL RIGHTS

    

(Cost: $0)

       28,366   

SHORT-TERM INVESTMENTS — 1.85%

  

  

MONEY MARKET FUNDS — 1.85%

    

BlackRock Cash Funds: Institutional,
SL Agency Shares

    

0.21%e,f,g

     3,886,641        3,886,641   

BlackRock Cash Funds: Prime,
SL Agency Shares

    

0.18%e,f,g

     281,405        281,405   

BlackRock Cash Funds: Treasury,
SL Agency Shares

    

0.04%e,f

     6,069,519        6,069,519   
   

 

 

  
      10,237,565   
   

 

 

  

TOTAL SHORT-TERM INVESTMENTS

    

(Cost: $10,237,565)

       10,237,565   
   

 

 

  

TOTAL INVESTMENTS
IN SECURITIES — 101.55%

   

  

(Cost: $558,720,034)

       563,040,217   

Other Assets, Less Liabilities — (1.55)%

  

     (8,596,517 ) 
   

 

 

  

NET ASSETS — 100.00%

  

   $ 554,443,700   
   

 

 

  

CPO  —  Certificates of Participation (Ordinary)

NVDR  —  Non-Voting Depositary Receipts

SP ADR  —  Sponsored American Depositary Receipts

SP GDR  —  Sponsored Global Depositary Receipts

 

a 

Non-income earning security.

b 

All or a portion of this security represents a security on loan. See Note 5.

c 

Security valued using Level 3 inputs in accordance with management’s fair valuation policy. See Note 1.

d 

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

e 

Affiliated issuer. See Note 2.

f 

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

g 

All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

 

 

SCHEDULE OF INVESTMENTS

      29   

Table of Contents

Statement of Assets and Liabilities (Unaudited)

iSHARES® CORE MSCI EMERGING MARKETS ETF

February 28, 2013

 

   

ASSETS

   

Investments, at cost:

   

Unaffiliated

    $ 510,951,823   

Affiliated (Note 2)

      47,768,211   
  

 

 

  

Total cost of investments

    $ 558,720,034   
  

 

 

  

Investments in securities, at fair value (including securities on loana) (Note 1):

   

Unaffiliated

    $ 517,036,859   

Affiliated (Note 2)

      46,003,358   
  

 

 

  

Total fair value of investments

      563,040,217   

Foreign currencies, at valueb

      10,905,181   

Cash

      954   

Receivables:

   

Investment securities sold

      1,021,296   

Dividends and interest

      520,887   

Capital shares sold

      5,148,302   
  

 

 

  

Total Assets

      580,636,837   
  

 

 

  

LIABILITIES

   

Payables:

   

Investment securities purchased

      22,006,302   

Collateral for securities on loan (Note 5)

      4,168,046   

Foreign taxes (Note 1)

      131   

Investment advisory fees (Note 2)

      18,658   
  

 

 

  

Total Liabilities

      26,193,137   
  

 

 

  

NET ASSETS

    $ 554,443,700   
  

 

 

  

Net assets consist of:

   

Paid-in capital

    $ 550,166,377   

Undistributed net investment income

      460,666   

Accumulated net realized loss

      (498,988 ) 

Net unrealized appreciation on investments and translation of assets and liabilities in foreign currencies

      4,315,645   
  

 

 

  

NET ASSETS

    $ 554,443,700   
  

 

 

  

Shares outstandingc

      10,800,000   
  

 

 

  

Net asset value per share

    $ 51.34   
  

 

 

  

 

a 

Securities on loan with a value of $3,831,228. See Note 5.

b 

Cost of foreign currencies: $10,905,695.

c 

$0.001 par value, number of shares authorized: 250 million.

See notes to financial statements.

 

30    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

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Statement of Operations (Unaudited)

iSHARES® CORE MSCI EMERGING MARKETS ETF

Period from October 18, 2012 (commencement of operations) through February 28, 2013

 

   

NET INVESTMENT INCOME

   

Dividends — unaffiliateda

    $ 835,661   

Dividends — affiliated (Note 2)

      16,710   

Interest — unaffiliated

      155   

Interest — affiliated (Note 2)

      1,431   

Securities lending income — affiliated (Note 2)

      7,494   
  

 

 

  

Total investment income

      861,451   
  

 

 

  

EXPENSES

   

Investment advisory fees (Note 2)

      165,475   
  

 

 

  

Total expenses

      165,475   

Less investment advisory fees waived (Note 2)

      (117,159 ) 
  

 

 

  

Net expenses

      48,316   
  

 

 

  

Net investment income

      813,135   
  

 

 

  

NET REALIZED AND UNREALIZED GAIN (LOSS)

   

Net realized gain (loss) from:

   

Investments — unaffiliated

      (477,725 ) 

Investments — affiliated (Note 2)

      (72,175 ) 

Foreign currency transactions

      50,912   
  

 

 

  

Net realized loss

      (498,988 ) 
  

 

 

  

Net change in unrealized appreciation/depreciation on:

   

Investments

      4,320,183   

Translation of assets and liabilities in foreign currencies

      (4,538 ) 
  

 

 

  

Net change in unrealized appreciation/depreciation

      4,315,645   
  

 

 

  

Net realized and unrealized gain

      3,816,657   
  

 

 

  

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

    $ 4,629,792   
  

 

 

  

 

a 

Net of foreign withholding tax of $118,745.

See notes to financial statements.

 

FINANCIAL STATEMENTS

      31   

Table of Contents

Statement of Changes in Net Assets

iSHARES® CORE MSCI EMERGING MARKETS ETF

 

     

Period from
October 18, 2012a

to

February 28,2013
(Unaudited)

  

INCREASE (DECREASE) IN NET ASSETS

   

OPERATIONS:

   

Net investment income

    $ 813,135   

Net realized loss

      (498,988 ) 

Net change in unrealized appreciation/depreciation

      4,315,645   
  

 

 

  

Net increase in net assets resulting from operations

      4,629,792   
  

 

 

  

DISTRIBUTIONS TO SHAREHOLDERS:

   

From net investment income

      (352,469 ) 
  

 

 

  

Total distributions to shareholders

      (352,469 ) 
  

 

 

  

CAPITAL SHARE TRANSACTIONS:

   

Proceeds from shares sold

      550,166,377   
  

 

 

  

Net increase in net assets from capital share transactions

      550,166,377   
  

 

 

  

INCREASE IN NET ASSETS

      554,443,700   

NET ASSETS

   

Beginning of period

      —   
  

 

 

  

End of period

    $ 554,443,700   
  

 

 

  

Undistributed net investment income included in net assets at end of period

    $ 460,666   
  

 

 

  

SHARES ISSUED

   

Shares sold

      10,800,000   
  

 

 

  

Net increase in shares outstanding

      10,800,000   
  

 

 

  

 

a 

Commencement of operations.

See notes to financial statements.

 

32    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

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Financial Highlights

iSHARES® CORE MSCI EMERGING MARKETS ETF

(For a share outstanding throughout the period)

 

     

Period from
Oct. 18, 2012a

to

Feb. 28, 2013
(Unaudited)

  

Net asset value, beginning of period

    $ 49.06   
  

 

 

  

Income from investment operations:

   

Net investment incomeb

      0.16   

Net realized and unrealized gainc

      2.24   
  

 

 

  

Total from investment operations

      2.40   
  

 

 

  

Less distributions from:

   

Net investment income

      (0.12 ) 
  

 

 

  

Total distributions

      (0.12 ) 
  

 

 

  

Net asset value, end of period

    $ 51.34   
  

 

 

  

Total return

      4.90 %d 
  

 

 

  

Ratios/Supplemental data:

   

Net assets, end of period (000s)

    $ 554,444   

Ratio of expenses to average net assetse

      0.05 % 

Ratio of expenses to average net assets prior to waived feese

      0.18 % 

Ratio of net investment income to average net assetse

      0.88 % 

Portfolio turnover ratef

      4 % 

 

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 in Creation Units but includes portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rate for the period ended February 28, 2013 was 4%. See Note 4.

See notes to financial statements.

 

FINANCIAL HIGHLIGHTS

      33   

Table of Contents

Notes to Financial Statements (Unaudited)

iSHARES® CORE MSCI EMERGING MARKETS ETF

 

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 fund (the “Fund”):

 

iShares Core ETF   

Diversification

Classification

MSCI Emerging Marketsa

    Diversified

 

  a   

The Fund commenced operations on October 18, 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 the 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 the Fund’s investment objective.

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

 

1. SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies are consistently followed by the Fund in the preparation of its 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.

SECURITY VALUATION

The Fund’s investments are valued at fair value each day that the Fund’s listing exchange is open. 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 BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) provides oversight of the valuation of

 

34    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

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Notes to Financial Statements (Unaudited) (Continued)

iSHARES® CORE MSCI EMERGING MARKETS ETF

 

investments for the Fund. The investments of the Fund are valued pursuant to policies and procedures developed by the Global Valuation Committee and approved by the Board of Directors of the Company (the “Board”).

 

  •  

Equity investments traded on a recognized securities exchange are valued at that day’s last reported trade price or the official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price.

 

  •  

Exchange-traded funds and closed-end funds traded on a recognized securities exchange are valued at that day’s last reported trade price or the official closing price, as applicable, on the exchange where the fund is primarily traded. Funds traded on a recognized exchange for which there were no sales on that day are valued at the last traded price.

 

  •  

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 deemed relevant by the Global Valuation Committee, in accordance with policies approved by the Board. These factors include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other factors, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or other default rates. Valuations based on such factors are reported to the Board on a quarterly basis.

The Global Valuation Committee employs various methods for calibrating valuation approaches for investments where an active market does not exist, including regular due diligence of the Company’s pricing vendors, a regular review of key inputs and assumptions, transactional back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing or stale prices and large movements in market values, and reviews of market related activity.

Fair value pricing could result in a difference between the prices used to calculate the 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 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 Fund’s perceived risk of that instrument. 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 (such as exchange rates, financing terms, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and

 

NOTES TO FINANCIAL STATEMENTS

      35   

Table of Contents

Notes to Financial Statements (Unaudited) (Continued)

iSHARES® CORE MSCI EMERGING MARKETS ETF

 

  •  

Level 3 — Unobservable inputs for the asset or liability, including the Fund’s 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. In accordance with the Company’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period.

The following table summarizes the value of each of the Fund’s investments according to the fair value hierarchy as of February 28, 2013. The breakdown of the Fund’s investments into major categories is disclosed in its schedule of investments.

 

      Investments  
Investment Type    Level 1      Level 2      Level 3      Total  

Assets:

            

Common Stocks

    $ 478,294,439       $ 150,218       $ 56,909       $ 478,501,566   

Investment Companies

      35,765,793         —         —         35,765,793   

Preferred Stocks

      38,506,927         —         —         38,506,927   

Rights

      28,352         14         —         28,366   

Money Market Funds

      10,237,565         —         —         10,237,565   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 562,833,076       $ 150,232       $ 56,909       $ 563,040,217   
  

 

 

     

 

 

     

 

 

     

 

 

  
                                     

SECURITY TRANSACTIONS AND INCOME RECOGNITION

Security transactions are accounted for on trade date. Dividend income is recognized on the ex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities as of February 28, 2013 are reflected in dividends receivable. Non-cash dividends received in the form of stock in an elective dividend, if any, are recorded as dividend income at fair value. Distributions received by the Fund may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. Interest income is accrued daily. Realized gains and losses on investment transactions are determined using the specific identification method.

FOREIGN CURRENCY TRANSLATION

The accounting records of the Fund 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.

The 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 Fund as a component of realized and unrealized gains and losses from investments for financial reporting purposes.

FOREIGN TAXES

The Fund may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates

 

36    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Notes to Financial Statements (Unaudited) (Continued)

iSHARES® CORE MSCI EMERGING MARKETS ETF

 

that exist in the foreign jurisdictions in which the Fund invests. These foreign taxes, if any, are paid by the Fund and are reflected in its statement 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 stock dividends are presented as “other foreign taxes,” and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable as of February 28, 2013, if any, are disclosed in the Fund’s statement of assets and liabilities.

DISTRIBUTIONS TO SHAREHOLDERS

Dividends and distributions paid by the 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 Fund.

FEDERAL INCOME TAXES

The Fund is treated as an entity separate from the Company’s other funds for federal income tax purposes. It is the policy of the 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 December 2011, the Financial Accounting Standards Board issued guidance to enhance current disclosure requirements on offsetting of certain assets and liabilities and enable financial statement users to compare financial statements prepared under U.S. GAAP and International Financial Reporting Standards (IFRS). The new disclosures are required for investments and derivative financial instruments subject to master netting agreements or similar agreements and require an entity to disclose both gross and net information about such investments and transactions eligible for offset in the statement of assets and liabilities. In addition, the standard requires disclosure of collateral received and posted in connection with master netting agreements or similar agreements. The guidance is effective for financial statements for fiscal years beginning after January 1, 2013, and interim periods within those fiscal years. Management is evaluating the impact of this guidance on the Fund’s financial statements and disclosures.

 

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 the 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 Fund, except interest, taxes, brokerage commissions and other expenses connected with the execution of portfolio transactions, distribution fees, litigation expenses and any extraordinary expenses.

For its investment advisory services to the Fund, BFA is entitled to an annual investment advisory fee of 0.18% based on the average daily net assets of the Fund.

BFA has voluntarily waived a portion of its investment advisory fees for the Fund in the amount of $73,530.

 

NOTES TO FINANCIAL STATEMENTS

      37   

Table of Contents

Notes to Financial Statements (Unaudited) (Continued)

iSHARES® CORE MSCI EMERGING MARKETS ETF

 

BFA has contractually agreed to waive a portion of its investment advisory fees for the Fund through October 31, 2013 in an amount equal to the investment advisory fees payable on the amount of the Fund’s investment in other iShares funds. In association with this agreement, for the period ended February 28, 2013, BFA waived its investment advisory fees for the Fund in the amount of $43,629.

The U.S. Securities and Exchange Commission has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”) to serve as securities lending agent for the Fund, subject to applicable conditions. BTC is an affiliate of BFA. Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, and any fees or other payments to and from borrowers of securities. The Fund retains 65% of securities lending income and pays a fee to BTC equal to 35% of such income. The Fund benefits from a borrower default indemnity provided by BlackRock. As securities lending agent, BTC bears all operational costs directly related to securities lending as well as the cost of borrower default indemnification. BTC is also responsible for fees and expenses incurred by the Fund as a result of the investment of cash collateral received for securities on loan in a money market fund managed by BFA or an affiliate.

For the period ended February 28, 2013, BTC earned securities lending agent fees from the Fund in the amount of $4,035.

BlackRock Investments, LLC, an affiliate of BFA, is the distributor for the Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Fund.

The 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 statement of operations.

The PNC Financial Services Group, Inc. is the largest stockholder of BlackRock and is considered to be an affiliate of the Fund for 1940 Act purposes.

The Fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the Fund’s underlying index.

Investments in issuers considered to be affiliates of the Fund (excluding short-term investments) during the period ended February 28, 2013, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

 

Name of Affiliated Issuer   

Shares Held

at Beginning

of Period

     

Shares

Purchased

     

Shares

Sold

    

Shares Held

at End

of Period

     

Value at

End

of Period

     

Dividend

Income

     

Net

Realized

Gain (Loss)

  

iShares MSCI Chile Capped Investable Market Index Fund

      —         24,667         (24,667 )      —       $ —       $ —       $ (93,930 ) 

iShares MSCI India Index Fund

      —         1,352,019         —        1,352,019         33,813,995         4,928         —   

iShares MSCI India Small Cap
Index Fund

      —         51,223         —        51,223         1,133,565         11,170         —   

iShares MSCI S&P India Nifty 50
Index Fund

      —         243,250         (209,000 )      34,250         818,233         612         21,755   
             

 

 

     

 

 

     

 

 

  
              $ 35,765,793       $ 16,710       $ (72,175 ) 
             

 

 

     

 

 

     

 

 

  
                                                               

 

38    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Notes to Financial Statements (Unaudited) (Continued)

iSHARES® CORE MSCI EMERGING MARKETS ETF

 

Certain directors and officers of the Company are also officers of BTC and/or BFA.

 

3. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the period ended February 28, 2013, were $559,071,397 and $10,037,763, respectively.

There were no in-kind transactions for the period ended February 28, 2013.

 

4. CAPITAL SHARE TRANSACTIONS

Capital shares are issued and redeemed by the 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 the Fund are not redeemable. Transactions in capital shares for the 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 may also 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.

 

5. LOANS OF PORTFOLIO SECURITIES

The Fund may lend its investment securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by the Fund is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter, at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund on the next business day. The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Fund benefits from a borrower default indemnity provided by BlackRock. BlackRock’s indemnity allows for full replacement of securities lent. Any securities lending cash collateral may be reinvested in certain short-term instruments either directly on behalf of a fund or through one or more joint accounts or money market funds, including those managed by BFA or its affiliates. The Fund could suffer a loss if the value of an investment purchased with cash collateral falls below the value of the cash collateral received.

As of February 28, 2013, any securities on loan were collateralized by cash. The cash collateral received was invested in money market funds managed by BFA. The value of any securities on loan as of February 28, 2013 and the value of the related collateral are disclosed in the statement of assets and liabilities. Securities lending income, as disclosed in the statement of operations, represents the income earned from the investment of the cash collateral, net of fees and other payments to and from borrowers, and less the fees paid to BTC as securities lending agent.

 

NOTES TO FINANCIAL STATEMENTS

      39   

Table of Contents

Notes to Financial Statements (Unaudited) (Continued)

iSHARES® CORE MSCI EMERGING MARKETS ETF

 

6. 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 Fund. Because such gains or losses are not taxable to the Fund 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 Fund’s tax year. These reclassifications have no effect on net assets or net asset values per share.

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

The Fund may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” The Fund may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.

As of February 28, 2013, the cost of investments for federal income tax purposes was $558,720,034. Net unrealized appreciation was $4,320,183, of which $18,532,821 represented gross unrealized appreciation on securities and $14,212,638 represented gross unrealized depreciation on securities.

Management has reviewed the tax positions as of February 28, 2013 and has determined that no provision for income tax is required in the Fund’s financial statements.

 

7. LINE OF CREDIT

The Fund, along with certain other iShares funds, is a party to a $125 million credit agreement with State Street Bank and Trust Company, which expires October 30, 2013. The credit agreement was established to facilitate the funding of purchases of securities in India. The credit agreement has the following terms: a commitment fee of 0.08% per annum on the unused portion of the credit agreement and interest at a rate equal to the higher of (a) the one-month LIBOR plus 1.00% per annum or (b) the U.S. Federal Funds rate plus 1.00% per annum on amounts borrowed. The commitment fee is allocated to each fund participating in the credit agreement based on each fund’s pro-rata share of the aggregate average daily value of assets invested in local Indian securities. The Fund did not borrow under the credit agreement during the period ended February 28, 2013.

 

8. SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events on the Fund 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.

 

40    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Board Review and Approval of Investment Advisory

Contract (Unaudited)

iSHARES® CORE MSCI EMERGING MARKETS ETF

 

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 Investment Advisory Contract between the Company and BFA (the “Advisory Contract”) on behalf of the Fund. The Independent Directors requested, and BFA provided, such information as the Independent Directors, with advice from independent counsel, deemed reasonably necessary to evaluate the terms of the proposed the Advisory Contract.

At a meeting held on September 6-7, 2012, the Board, including a majority of the Independent Directors, approved the selection of BFA as investment adviser and approved the Advisory Contract for the Fund, 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 Fund, the Board, including the Independent Directors, considered the following factors, no one of which was controlling, and made the following conclusions:

Expenses of the Fund — The Board reviewed statistical information prepared by Lipper Inc. (“Lipper”), an independent provider of investment company data, regarding the expense ratio components, including any proposed advisory fees, waivers/reimbursements, and gross and net total expenses of the Fund in comparison with the same information for other registered investment companies objectively selected by Lipper as comprising the Fund’s 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 their size, sponsor, inception date, or other differentiating factors, but that 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 an index similar to that tracked by the Fund, 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 and funds sponsored by “at cost” service providers), as applicable. 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 Groups 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 Fund.

The Board also noted that the proposed investment advisory fees and overall expenses for the Fund 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 Fund supported the Board’s approval of the Advisory Contract.

Nature, Extent and Quality of Services to be Provided by BFA — The Board reviewed the scope of services to be provided by BFA under the Advisory Contract. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting iShares funds and their shareholders. The Board noted that BFA became an indirect wholly-owned subsidiary of BlackRock in December 2009. The Board acknowledged that additional resources to support iShares funds and their shareholders have been added or enhanced since then, including, in such areas as investor education, product management, customized portfolio consulting support, and capital markets support. The Board considered representations by BFA, BTC, and BlackRock that the scope and quality of services to be provided to the Fund 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. In that regard, the Board noted that BFA reports to the Board about portfolio

 

BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT

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Board Review and Approval of Investment Advisory

Contract (Unaudited) (Continued)

iSHARES® CORE MSCI EMERGING MARKETS ETF

 

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 Fund. 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 to the Fund under the Advisory Contract supported the Board’s approval of the Advisory Contract.

Costs of Services to be Provided to the Fund and Profits to be Realized by BFA and Affiliates — The Board did not consider the profitability of the Fund 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 Fund 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 following the Fund’s launch 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 Fund 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 Fund’s assets. The Board noted that the Advisory Contract for the Fund did not provide for any breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board further noted management’s assertion that future economies of scale for the Fund had been taken into consideration by fixing the investment advisory fee rate at the low end of the market place, effectively giving Fund shareholders, from inception, the benefits of lower fees. The Board noted that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding breakpoints in the future. Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider this issue at least annually following an initial two-year period, concluded that the investment advisory fee rate incorporates potential economies of scale 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 received and considered information regarding the investment advisory/management fee rates 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 (including sub-advised funds), collective trust funds and institutional separate accounts (together, the “Other Accounts”). The Board noted that BFA and its affiliates manage Other Accounts with substantially the same investment objective and strategy as the Fund. The Board further noted that BFA provided the Board with detailed information regarding how Other Accounts (particularly institutional clients) generally differ from the Fund, including in terms of the different, generally more extensive services to be provided, as well as other significant differences in the approach of BFA and its affiliates to the Fund, 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 risks of managing and providing other services to the Fund, as a publicly traded exchange traded fund, as compared to Other Accounts that are institutional clients in light of differing regulatory requirements and client-imposed mandates. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund expenses to be borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund was generally higher than the investment advisory/management fee rates for the Other Accounts that are institutional clients of BFA (or its affiliates) and concluded that the differences appeared to be consistent with the factors discussed. The Board further noted that the proposed advisory fee rate for the Fund was lower than that of an iShares index fund that

 

42    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

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Board Review and Approval of Investment Advisory

Contract (Unaudited) (Continued)

iSHARES® CORE MSCI EMERGING MARKETS ETF

 

invests in the same asset class, and acknowledged management’s assertion that the Fund’s advisory fee rate had been proposed for competitive reasons and was reflective of a discount to the full value of the services to be rendered by BFA to the Fund.

Other Benefits to BFA and/or its Affiliates — Except as noted below, the Board did not consider ancillary revenue to be received by BFA and/or its affiliates in connection with the services to be provided to the Fund by BFA since the proposed relationship had not yet commenced. However, the Board noted that BFA generally 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 Fund. 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 Fund 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 Fund’s securities lending agent, and its affiliates, in the event of any lending of the Fund’s securities. The Board further noted that any portfolio transactions on behalf of the Fund placed through a BFA affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates, will be 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 Fund’s shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the Advisory Contract.

Based on the considerations described above, the Board determined that the investment advisory fee rate under the Advisory Contract does not constitute a fee that is 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 Fund and its shareholders to approve the Advisory Contract.

 

BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT

      43   

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Supplemental Information (Unaudited)

iSHARES® CORE MSCI EMERGING MARKETS ETF

 

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 the 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		  
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		  
$ 0.04312       $ —       $ 0.07739       $ 0.12051         36 %      —   %      64 %      100 % 

 

44    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

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Notes:

 

 

2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

      45   

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Notes:

 

 

46    2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents
LOGO    

 

For more information visit www.iShares.com or call 1-800-474-2737

 

This report is intended for the Fund’s 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 MSCI Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.

A description of the policies that the Fund uses to determine how to vote proxies relating to portfolio securities and information about how the Fund 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 Fund’s website at www.iShares.com; and on the U.S. Securities and Exchange Commission (SEC) website at www.sec.gov.

The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Form N-Q is 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 Fund also discloses its complete schedule of portfolio holdings on a daily and monthly basis on the Fund’s website.

©2013 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.

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iS-SAR-813-0213

Table of Contents

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.

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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.

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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:   April 26, 2013

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:   April 26, 2013
By:  

/s/ Jack Gee

  Jack Gee, Treasurer and Chief Financial Officer (Principal Financial Officer)
Date:   April 26, 2013