UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS
OF REGISTERED MANAGEMENT INVESTMENT COMPANY
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
1 Iron Street, Boston, MA 02210
(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: April 30, 2018
Date of reporting period: January 31, 2018
| Item 1. | Schedules of Investments. |
Schedule of Investments (Unaudited)
iSHARES ASIA/PACIFIC DIVIDEND ETF
January 31, 2018
| 1 |
Schedule of Investments (Unaudited) (Continued)
iSHARES ASIA/PACIFIC DIVIDEND ETF
January 31, 2018
Affiliates
Investments in issuers considered to be affiliates of the Fund during the nine months ended January 31, 2018, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
| Affiliated issuer | Shares held at 04/30/17 |
Shares purchased |
Shares sold |
Shares held at 01/31/18 |
Value at 01/31/18 |
Income | Net realized gain (loss) |
Change in unrealized appreciation (depreciation) |
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| BlackRock Cash Funds: Institutional, |
1,459,016 | — | (887,130 | )a | 571,886 | $ | 572,000 | $ | 13,741 | b | $ | (318 | ) | $ | (186 | ) | ||||||||||||||||
| BlackRock Cash Funds: Treasury, |
7,107 | — | (1,984 | )a | 5,123 | 5,123 | 143 | — | — | |||||||||||||||||||||||
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| $ | 577,123 | $ | 13,884 | $ | (318 | ) | $ | (186 | ) | |||||||||||||||||||||||
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| a | Net of purchases and sales. |
| b | Includes the Fund’s portion of securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. |
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to a recently published shareholder report. Shareholder reports are available on the Fund’s website at www.iShares.com and on the U.S. Securities and Exchange Commission website at www.sec.gov.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of January 31, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Investments |
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| Assets |
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| Common stocks |
$ | 43,516,388 | $ | — | $ | — | $ | 43,516,388 | ||||||||
| Money market funds |
577,123 | — | — | 577,123 | ||||||||||||
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| Total |
$ | 44,093,511 | $ | — | $ | — | $ | 44,093,511 | ||||||||
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| 2 |
Schedule of Investments (Unaudited)
iSHARES EMERGING MARKETS DIVIDEND ETF
January 31, 2018
| 3 |
Schedule of Investments (Unaudited) (Continued)
iSHARES EMERGING MARKETS DIVIDEND ETF
January 31, 2018
| 4 |
Schedule of Investments (Unaudited) (Continued)
iSHARES EMERGING MARKETS DIVIDEND ETF
January 31, 2018
Affiliates
Investments in issuers considered to be affiliates of the Fund during the nine months ended January 31, 2018, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
| Affiliated issuer | Shares held at 04/30/17 |
Shares purchased |
Shares sold |
Shares held at 01/31/18 |
Value at 01/31/18 |
Income | Net realized gain (loss) |
Change in unrealized appreciation (depreciation) |
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| BlackRock Cash Funds: Institutional, |
6,333,570 | — | (3,808,369 | )a | 2,525,201 | $ | 2,525,706 | $ | 77,328 | b | $ | 1,747 | $ | (1,854 | ) | |||||||||||||||||
| BlackRock Cash Funds: Treasury, |
122,185 | 222,270 | a | — | 344,455 | 344,455 | 5,781 | — | — | |||||||||||||||||||||||
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| $ | 2,870,161 | $ | 83,109 | $ | 1,747 | $ | (1,854 | ) | ||||||||||||||||||||||||
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| a | Net of purchases and sales. |
| b | Includes the Fund’s portion of securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. |
Futures Contracts
Futures contracts outstanding as of January 31, 2018 were as follows:
| Description | Number of contracts |
Expiration date |
Notional amount (000) |
Value / unrealized appreciation (depreciation) |
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| Long Contracts |
9 | Mar 2018 | $ | 566 | $ | 52,652 | ||||||||||
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to a recently published shareholder report. Shareholder reports are available on the Fund’s website at www.iShares.com and on the U.S. Securities and Exchange Commission website at www.sec.gov.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of January 31, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Investments |
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| Assets |
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| Common stocks |
$ | 435,826,424 | $ | — | $ | — | $ | 435,826,424 | ||||||||
| Preferred stocks |
18,094,949 | — | — | 18,094,949 | ||||||||||||
| Rights |
— | 0 | a | — | 0 | a | ||||||||||
| Money market funds |
2,870,161 | — | — | 2,870,161 | ||||||||||||
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| Total |
$ | 456,791,534 | $ | 0 | a | $ | — | $ | 456,791,534 | |||||||
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| Derivative financial instrumentsb |
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| Assets |
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| Futures contracts |
$ | 52,652 | $ | — | $ | — | $ | 52,652 | ||||||||
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| Total |
$ | 52,652 | $ | — | $ | — | $ | 52,652 | ||||||||
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| a | Rounds to less than $1. |
| b | Shown at the unrealized appreciation (depreciation) on the contracts. |
| 5 |
| Item 2. | 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 certifications filed with this Form N-Q. |
| (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 registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
| Item 3. | Exhibits. |
| (a) | Certifications of the President (the registrant’s Principal Executive Officer) and Treasurer and Chief Financial Officer (the registrant’s Principal Financial Officer) as required by Rule 30a-2(a) under the Investment Company Act of 1940 are filed with this Form N-Q as exhibits. |
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/ Martin Small | |
| Martin Small, President (Principal Executive Officer) | ||
| Date: | March 29, 2018 | |
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/ Martin Small | |
| Martin Small, President (Principal Executive Officer) | ||
| Date: | March 29, 2018 | |
| By: | /s/ Jack Gee | |
| Jack Gee, Treasurer and Chief Financial Officer (Principal Financial Officer) | ||
| Date: | March 29, 2018 | |
| Form N-Q Exhibit for Item 3(a) | EX-99.CERT |
I, Martin Small, certify that:
| 1. | I have reviewed this report on Form N-Q of iShares, Inc. for the following two series: iShares Asia/Pacific Dividend ETF and iShares Emerging Markets Dividend ETF; |
| 2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
| 3. | Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; |
| 4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: |
| (a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
| (b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
| (c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and |
| (d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
| 5. | The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
| (a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
| (b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
| Date: | March 29, 2018 | /s/ Martin Small | President (Principal Executive Officer) | |||||||
| Martin Small [Signature] |
[Title] | |||||||||
| Form N-Q Exhibit for Item 3(a) | EX-99.CERT |
I, Jack Gee, certify that:
| 1. | I have reviewed this report on Form N-Q of iShares, Inc. for the following two series: iShares Asia/Pacific Dividend ETF and iShares Emerging Markets Dividend ETF; |
| 2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
| 3. | Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; |
| 4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: |
| (a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
| (b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
| (c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and |
| (d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
| 5. | The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
| (a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
| (b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
| Date: | March 29, 2018 | /s/ Jack Gee | Treasurer and Chief Financial Officer (Principal Financial Officer) | |||||||
| Jack Gee [Signature] |
[Title] | |||||||||