N-Q 1 d540292dnq.htm FORM N-Q Form N-Q

 

 

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

 

Security  

    

    

Shares

     Value  

COMMON STOCKS — 99.80%

 

AUSTRALIA — 50.56%

 

Amcor Ltd./Australia

     92,626     $ 1,092,057  

AusNet Services

     1,144,289       1,570,567  

Australia & New Zealand Banking Group Ltd.

     55,574       1,286,130  

Bendigo & Adelaide Bank Ltd.

     159,802       1,515,270  

Commonwealth Bank of Australia

     20,840       1,330,946  

Harvey Norman Holdings Ltd.

     417,484       1,528,021  

Mineral Resources Ltd.

     120,882       1,842,181  

Monadelphous Group Ltd.

     114,759       1,631,783  

National Australia Bank Ltd.

     64,194       1,514,209  

Suncorp Group Ltd.

     136,129       1,505,748  

Sydney Airport

     286,293       1,578,734  

Tabcorp Holdings Ltd.

     448,395       1,877,164  

Telstra Corp. Ltd.

     467,080       1,388,060  

Westpac Banking Corp.

     54,698       1,371,271  

Woodside Petroleum Ltd.

     37,733       1,011,958  
   

 

 

  
      22,044,099  

HONG KONG — 27.51%

 

Giordano International Ltd.a

     3,102,000       1,586,407  

Hang Seng Bank Ltd.

     48,100       1,145,084  

HK Electric Investments & HK Electric Investments Ltd.b

     1,726,500       1,595,944  

Kerry Properties Ltd.

     301,000       1,439,298  

New World Development Co. Ltd.

     854,000       1,382,307  

PCCW Ltd.

     2,533,000       1,460,577  

Sino Land Co. Ltd.

     562,000       1,036,130  

Swire Pacific Ltd. Class A

     119,000       1,190,540  

VTech Holdings Ltd.

     83,700       1,157,885  
   

 

 

  
      11,994,172  

NEW ZEALAND — 12.34%

 

Sky Network Television Ltd.

     928,636       1,999,995  

SKYCITY Entertainment Group Ltd.

     456,751       1,402,871  

Spark New Zealand Ltd.

     744,997       1,979,426  
   

 

 

  
      5,382,292  

SINGAPORE — 9.39%

 

Singapore Post Ltd.

     1,051,500       1,036,079  

Singapore Telecommunications Ltd.

     410,000       1,108,616  

StarHub Ltd.

     883,882       1,951,130  
   

 

 

  
      4,095,825  
   

 

 

  

TOTAL COMMON STOCKS
(Cost: $42,106,088)

       43,516,388  
Security  

    

    

Shares

     Value  

SHORT-TERM INVESTMENTS — 1.32%

 

MONEY MARKET FUNDS — 1.32%

 

BlackRock Cash Funds: Institutional,
SL Agency Shares

    

1.59%c,d,e

     571,886     $ 572,000  

BlackRock Cash Funds: Treasury,
SL Agency Shares

    

1.28%c,d

     5,123       5,123  
   

 

 

  
      577,123  
   

 

 

  

TOTAL SHORT-TERM  INVESTMENTS

 

  

(Cost: $577,123)

       577,123  
   

 

 

  

TOTAL INVESTMENTS
IN SECURITIES — 101.12%

 

  

(Cost: $42,683,211)

       44,093,511  

Other Assets, Less Liabilities — (1.12)%

 

     (489,363 ) 
   

 

 

  

NET ASSETS — 100.00%

     $ 43,604,148  
   

 

 

  

 

a  All or a portion of this security is on loan.
b  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.
c  Affiliate of the Fund.
d  Annualized 7-day yield as of period end.
e  All or a portion of this security was purchased with cash collateral received from loaned securities.
 

 

     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)		  

BlackRock Cash Funds: Institutional,
SL Agency Shares

     1,459,016       —       (887,130 )a      571,886     $ 572,000     $ 13,741 b    $ (318 )    $ (186 ) 

BlackRock Cash Funds: Treasury,
SL Agency Shares

     7,107       —       (1,984 )a      5,123       5,123       143       —       —  
         

 

 

    

 

 

    

 

 

    

 

 

  
  $ 577,123     $ 13,884     $ (318 )    $ (186 ) 
         

 

 

    

 

 

    

 

 

    

 

 

  
                                                                 

 

  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

            

Assets

            

Common stocks

    $ 43,516,388      $ —      $ —      $ 43,516,388  

Money market funds

      577,123        —        —        577,123  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 44,093,511      $ —      $ —      $ 44,093,511  
  

 

 

     

 

 

     

 

 

     

 

 

  
                                     

 

2

     

Schedule of Investments (Unaudited)

iSHARES EMERGING MARKETS DIVIDEND ETF

January 31, 2018

 

Security       
    
Shares		     Value  

COMMON STOCKS — 95.68%

 

BRAZIL — 6.89%

 

AES Tiete Energia SA

     666,600     $ 2,626,871  

Banco do Brasil SA

     383,800       4,808,786  

CCR SA

     505,000       2,498,729  

Cia. Energetica de Minas Geraisa

     248,810       586,877  

EDP - Energias do Brasil SA

     1,131,200       4,897,062  

Engie Brasil Energia SA

     181,800       2,063,150  

Multiplus SA

     626,200       6,960,084  

Transmissora Alianca de Energia Eletrica SA Units

     1,090,800       6,940,312  
   

 

 

  
      31,381,871  

CHINA — 15.04%

 

Agile Group Holdings Ltd.

     2,424,000       4,351,234  

Agricultural Bank of China Ltd. Class H

     7,878,000       4,834,705  

ANTA Sports Products Ltd.

     606,000       2,920,967  

Bank of China Ltd. Class H

     7,070,000       4,257,484  

China Construction Bank Corp. Class H

     4,242,000       4,892,039  

China Power International Development Ltd.b

     17,309,999       4,736,129  

Guangzhou R&F Properties Co. Ltd. Class H

     5,575,200       15,681,798  

Huadian Power International Corp. Ltd. Class Hb

     15,756,000       5,982,947  

Huaneng Power International Inc. Class H

     10,100,000       6,521,169  

Industrial & Commercial Bank of China Ltd. Class H

     5,454,000       5,160,118  

Shenzhen Investment Ltd.

     9,292,000       4,158,053  

Shougang Fushan Resources Group Ltd.

     8,888,000       2,159,088  

Zhejiang Expressway Co. Ltd. Class H

     2,424,000       2,869,831  
   

 

 

  
      68,525,562  

CZECH REPUBLIC — 3.16%

 

CEZ AS

     333,906       8,582,264  

Komercni Banka AS

     125,846       5,799,283  
   

 

 

  
      14,381,547  

GREECE — 2.28%

 

OPAP SA

     770,397       10,365,002  
   

 

 

  
      10,365,002  

INDIA — 0.60%

 

Reliance Industries Ltd. GDRc

     90,496       2,732,979  
   

 

 

  
      2,732,979  

INDONESIA — 1.56%

 

Bank Pembangunan Daerah Jawa Timur Tbk PT

     121,705,000       7,090,406  
   

 

 

  
      7,090,406  

MALAYSIA — 4.13%

 

Berjaya Sports Toto Bhd

     6,221,613       3,607,426  

British American Tobacco Malaysia Bhd

     303,000       2,657,056  

Malayan Banking Bhd

     2,040,200       5,286,645  

Public Bank Bhd

     400,400       2,257,916  
Security       
    
Shares		     Value  

Sime Darby Bhd

     1,030,200     $ 808,777  

Sime Darby Plantation Bhda

     929,200       1,311,167  

Sime Darby Property Bhda

     929,200       376,663  

Telekom Malaysia Bhdb

     1,575,600       2,486,034  
   

 

 

  
      18,791,684  

MEXICO — 1.29%

 

Banco Santander Mexico SA Institucion de Banca Multiple Grupo Financiero Santand Class B

     3,737,000       5,892,799  
   

 

 

  
      5,892,799  

PHILIPPINES — 1.72%

 

Globe Telecom Inc.

     81,810       3,030,000  

PLDT Inc.

     156,550       4,788,050  
   

 

 

  
      7,818,050  

POLAND — 1.29%

 

Powszechny Zaklad Ubezpieczen SA

     429,452       5,894,945  
   

 

 

  
      5,894,945  

RUSSIA — 8.98%

 

MegaFon PJSC GDRd

     637,310       6,181,907  

MMC Norilsk Nickel PJSC

     30,906       6,376,058  

Mobile TeleSystems PJSC ADR

     420,160       5,100,742  

PhosAgro PJSC GDRd

     350,066       5,548,546  

Rostelecom PJSC

     3,892,540       4,635,109  

Severstal PJSC

     422,180       6,896,241  

Unipro PJSC

     137,562,000       6,185,446  
   

 

 

  
      40,924,049  

SOUTH AFRICA — 7.28%

 

Barloworld Ltd.

     214,928       3,055,105  

Coronation Fund Managers Ltd.

     853,248       5,659,696  

Foschini Group Ltd. (The)

     236,946       3,862,377  

MTN Group Ltd.

     639,128       7,072,864  

RMB Holdings Ltd.

     608,626       4,039,139  

Tiger Brands Ltd.

     51,106       1,984,198  

Truworths International Ltd.

     534,694       4,413,097  

Woolworths Holdings Ltd./South Africa

     567,216       3,065,438  
   

 

 

  
      33,151,914  

TAIWAN — 25.53%

 

Asia Cement Corp.

     2,424,000       2,499,226  

Asustek Computer Inc.

     404,000       3,895,078  

Casetek Holdings Ltd.

     1,212,000       4,470,330  

Chunghwa Telecom Co. Ltd.

     1,010,000       3,759,929  

Far EasTone Telecommunications Co. Ltd.

     1,212,000       3,160,419  

Farglory Land Development Co. Ltd.

     4,444,263       4,902,405  

Gigabyte Technology Co. Ltd.

     2,828,000       7,054,111  

Highwealth Construction Corp.

     4,646,500       7,301,631  

Huaku Development Co. Ltd.

     2,424,000       6,038,064  

IEI Integration Corp.

     1,616,000       2,248,333  

Inventec Corp.

     5,252,475       4,289,132  
 

 

     3  

Schedule of Investments (Unaudited) (Continued)

iSHARES EMERGING MARKETS DIVIDEND ETF

January 31, 2018

 

Security  

    

    

Shares

     Value  

Lite-On Technology Corp.

     2,229,252     $ 3,273,644  

Makalot Industrial Co. Ltd.

     1,212,000       5,509,942  

MediaTek Inc.

     404,000       4,144,585  

Merry Electronics Co. Ltd.

     842,000       5,286,785  

Novatek Microelectronics Corp.

     1,212,000       5,094,097  

Radiant Opto-Electronics Corp.

     2,222,000       5,641,626  

Simplo Technology Co. Ltd.

     804,600       5,148,579  

Synnex Technology International Corp.

     2,424,000       3,430,718  

Systex Corp.

     2,424,000       4,981,819  

Taiwan Cement Corp.

     1,818,000       2,348,483  

Taiwan Mobile Co. Ltd.

     1,010,000       3,863,890  

TSRC Corp.

     1,616,925       1,988,875  

U-Ming Marine Transport Corp.

     1,616,000       2,142,986  

Wan Hai Lines Ltd.

     6,464,000       4,125,179  

Wistron NeWeb Corp.

     827,633       2,464,825  

WPG Holdings Ltd.

     3,030,000       4,132,456  

Yeong Guan Energy Technology Group Co. Ltd.

     1,212,000       3,077,250  
   

 

 

  
      116,274,397  

THAILAND — 12.05%

 

Advanced Info Service PCL NVDR

     828,200       5,090,310  

Charoen Pokphand Foods PCL NVDR

     2,888,600       2,176,595  

Glow Energy PCL NVDR

     2,141,200       5,828,139  

Intouch Holdings PCL NVDR

     3,030,000       5,562,739  

Jasmine International PCL NVDRb

     16,826,600       4,163,670  

Kiatnakin Bank PCL NVDR

     3,232,000       8,436,015  

Land & Houses PCL NVDR

     15,917,600       5,895,407  

PTT Global Chemical PCL NVDR

     1,313,000       4,035,002  

Sansiri PCL NVDR

     72,154,466       5,022,246  

Siam Cement PCL (The) NVDR

     161,600       2,538,544  

Thai Oil PCL NVDR

     1,878,600       6,148,036  
   

 

 

  
      54,896,703  

TURKEY — 2.71%

 

Eregli Demir ve Celik Fabrikalari TAS

     2,130,292       5,650,265  

Tofas Turk Otomobil Fabrikasi AS

     235,330       2,001,127  

Turk Traktor ve Ziraat Makineleri AS

     223,412       4,704,790  
   

 

 

  
      12,356,182  

UNITED ARAB EMIRATES — 1.17%

 

Dubai Islamic Bank PJSC

     3,220,486       5,348,334  
   

 

 

  
      5,348,334  
   

 

 

  

TOTAL COMMON STOCKS
(Cost: $376,804,589)

       435,826,424  

PREFERRED STOCKS — 3.97%

 

BRAZIL — 0.81%

 

Cia. Energetica de Minas Gerais, Preference Shares

     1,565,663       3,707,817  
   

 

 

  
      3,707,817  
Security  

    

    

Shares

     Value  

RUSSIA — 3.16%

 

Surgutneftegas OJSC, Preference Shares

     27,270,000     $ 14,387,132  
   

 

 

  
      14,387,132  
   

 

 

  

TOTAL PREFERRED STOCKS
(Cost: $18,427,446)

       18,094,949  

RIGHTS — 0.00%

 

CHINA — 0.00%

 

Agile Group Holdings Ltd. (Expires 02/01/18)a

     46,800       —  
   

 

 

  
      —  
   

 

 

  

TOTAL RIGHTS
(Cost: $0)

       —  

SHORT-TERM INVESTMENTS — 0.63%

 

MONEY MARKET FUNDS — 0.63%

 

BlackRock Cash Funds: Institutional,
SL Agency Shares

    

1.59%e,f,g

     2,525,201       2,525,706  

BlackRock Cash Funds: Treasury,
SL Agency Shares

    

1.28%e,f

     344,455       344,455  
   

 

 

  
      2,870,161  
   

 

 

  

TOTAL SHORT-TERM INVESTMENTS
(Cost: $2,869,924)

 

     2,870,161  
   

 

 

  

TOTAL INVESTMENTS
IN SECURITIES — 100.28%
(Cost: $398,101,959)

       456,791,534  

Other Assets, Less Liabilities — (0.28)%

 

     (1,256,433 ) 
   

 

 

  

NET ASSETS — 100.00%

     $ 455,535,101  
   

 

 

  

ADR  —  American Depositary Receipts

GDR  —  Global Depositary Receipts

NVDR  —  Non-Voting Depositary Receipts

 

a  Non-income producing security.
b  All or a portion of this security is on loan.
c  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.
d  This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933.
e  Affiliate of the Fund.
f  Annualized 7-day yield as of period end.
g  All or a portion of this security was purchased with cash collateral received from loaned securities.
 

 

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)		  

BlackRock Cash Funds: Institutional,
SL Agency Shares

     6,333,570       —       (3,808,369 )a      2,525,201     $ 2,525,706     $ 77,328 b    $ 1,747     $ (1,854 ) 

BlackRock Cash Funds: Treasury,
SL Agency Shares

     122,185       222,270 a      —       344,455       344,455       5,781       —       —  
         

 

 

    

 

 

    

 

 

    

 

 

  
  $ 2,870,161     $ 83,109     $ 1,747     $ (1,854 ) 
         

 

 

    

 

 

    

 

 

    

 

 

  
   

 

  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)		  

Long Contracts
MSCI Emerging Markets E-Mini

      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

 

Assets

 

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  
  

 

 

     

 

 

    

 

 

     

 

 

  

Total

    $ 456,791,534      $ 0 a    $ —      $ 456,791,534  
  

 

 

     

 

 

    

 

 

     

 

 

  

Derivative financial instrumentsb

 

Assets

 

Futures contracts

    $ 52,652      $ —     $ —      $ 52,652  
  

 

 

     

 

 

    

 

 

     

 

 

  

Total

    $ 52,652      $ —     $ —      $ 52,652  
  

 

 

     

 

 

    

 

 

     

 

 

  
                                    

 

  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