N-Q 1 d614637dnq.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

100 Summer Street, 4th Floor, Boston, MA 02110

(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, 2019

Date of reporting period: July 31, 2018

 

 

 

Item 1.

Schedules of Investments.

 

Schedule of Investments (Unaudited) 

July 31, 2018

   

iSHARES® ASIA/PACIFIC DIVIDEND ETF

(Percentages shown are based on Net Assets)

 

Security  

    

    

Shares

     Value  

COMMON STOCKS

 

AUSTRALIA — 49.6%

 

Amcor Ltd./Australia

     84,549     $ 947,206  

AusNet Services

     956,487       1,159,015  

Australia & New Zealand Banking Group Ltd.

     57,497       1,252,378  

Bendigo & Adelaide Bank Ltd.

     168,996       1,471,146  

Commonwealth Bank of Australia

     22,044       1,225,622  

Fortescue Metals Group Ltd.

     446,013       1,448,943  

Harvey Norman Holdings Ltd.

     470,256       1,241,038  

Monadelphous Group Ltd.

     73,332       803,551  

National Australia Bank Ltd.

     65,031       1,369,587  

Suncorp Group Ltd.

     114,142       1,270,252  

Sydney Airport

     234,774       1,233,934  

Tabcorp Holdings Ltd.

     323,180       1,121,977  

Telstra Corp. Ltd.

     602,838       1,272,745  

Westpac Banking Corp.

     60,271       1,319,969  

Woodside Petroleum Ltd.

     43,660       1,172,990  
   

 

 

  
      18,310,353  

HONG KONG — 28.4%

 

Giordano International Ltd.

     3,556,000       2,016,554  

Hang Seng Bank Ltd.

     33,800       920,039  

HK Electric Investments & HK Electric Investments Ltd.(a)

    1,344,000       1,373,604  

Kerry Properties Ltd.

     184,000       932,058  

New World Development Co. Ltd.

     608,000       866,230  

NWS Holdings Ltd.

     573,000       1,035,426  

PCCW Ltd.

     2,672,000       1,559,517  

Sino Land Co. Ltd.

     484,000       831,425  

VTech Holdings Ltd.

     86,700       970,067  
   

 

 

  
      10,504,920  

JAPAN — 2.7%

 

Nissan Motor Co. Ltd.

     104,000       980,632  
   

 

 

  
Security  

    

    

Shares

     Value  

NEW ZEALAND — 13.4%

 

SKY Network Television Ltd.

     1,088,421     $ 2,008,102  

SKYCITY Entertainment Group Ltd.

     412,131       1,111,092  

Spark New Zealand Ltd.

     694,972       1,831,040  
   

 

 

  
      4,950,234  

SINGAPORE — 5.7%

 

Singapore Telecommunications Ltd.

     470,400       1,109,222  

StarHub Ltd.

     800,082       1,010,902  
   

 

 

  
      2,120,124  
   

 

 

  

TOTAL COMMON STOCKS — 99.8%
(Cost: $40,784,313)

       36,866,263  

SHORT-TERM INVESTMENTS

 

MONEY MARKET FUNDS — 0.0%

 

BlackRock Cash Funds: Treasury,
SL Agency Shares,

    

1.83%(b)(c)

     6,995       6,995  
   

 

 

  

TOTAL SHORT-TERM INVESTMENTS — 0.0%
(Cost: $6,995)

 

     6,995  
   

 

 

  

TOTAL INVESTMENTS
IN SECURITIES — 99.8%

 

  

(Cost: $40,791,308)

       36,873,258  

Other Assets, Less Liabilities — 0.2%

 

     69,861  
   

 

 

  

NET ASSETS — 100.0%

     $ 36,943,119  
   

 

 

  

 

(a) 

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.

(b) 

Affiliate of the Fund.

(c) 

Annualized 7-day yield as of period-end.

 

 

     1  

Schedule of Investments (Unaudited) (Continued)

July 31, 2018

    iSHARES® ASIA/PACIFIC DIVIDEND ETF

 

Affiliates

Investments in issuers considered to be affiliates of the Fund during the three months ended July 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
04/30/18		     Net
activity		     Shares
held at
07/31/18		     Value at
07/31/18		    

Income

     Net realized
gain (loss)		     Change in
unrealized
appreciation
(depreciation)		  

BlackRock Cash Funds: Institutional,
SL Agency Shares

      370,188       (370,188 )      —     $ —     $ 847 (a)     $ 73     $ (37 ) 

BlackRock Cash Funds: Treasury,
SL Agency Shares

      5,356       1,639       6,995       6,995       133       —       —  
        

 

 

    

 

 

    

 

 

    

 

 

  
  $ 6,995     $ 980     $ 73     $ (37 ) 
        

 

 

    

 

 

    

 

 

    

 

 

  
                                                          

 

  (a)    Includes 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, and less fees paid to BTC as securities lending agent.

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 July 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

    $ 36,866,263      $ —      $ —      $ 36,866,263  

Money Market Funds

      6,995        —        —        6,995  
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 36,873,258      $ —      $ —      $ 36,873,258  
  

 

 

     

 

 

     

 

 

     

 

 

  
                                     

 

2   

Schedule of Investments (Unaudited) 

July 31, 2018

   

iSHARES® EMERGING MARKETS DIVIDEND ETF

(Percentages shown are based on Net Assets)

 

Security       
    
Shares		     Value  

COMMON STOCKS

 

BRAZIL — 6.0%

 

AES Tiete Energia SA, NVS

     1,689,200     $ 4,550,518  

CCR SA

     1,012,800       2,838,908  

EDP - Energias do Brasil SA

     824,000       2,994,051  

Engie Brasil Energia SA

     432,600       4,305,675  

Multiplus SA

     701,600       5,173,311  

Transmissora Alianca de Energia Eletrica
SA, NVS

     1,009,400       5,430,363  
   

 

 

  
      25,292,826  

CHINA — 9.0%

 

Agile Group Holdings Ltd.

     1,212,000       1,862,679  

Agricultural Bank of China Ltd., Class H

     6,386,000       3,092,435  

Bank of China Ltd., Class H

     6,798,000       3,187,990  

China Construction Bank Corp., Class H

     3,090,000       2,799,730  

China Power International Development Ltd.(a)

    25,956,999       6,450,259  

Guangzhou R&F Properties Co. Ltd., Class H

     1,977,600       3,553,412  

Industrial & Commercial Bank of China Ltd., Class H

     3,708,000       2,745,389  

Seaspan Corp.(a)

    1,042,978       8,948,751  

Shenzhen Investment Ltd.(a)

    8,240,000       2,971,678  

Zhejiang Expressway Co. Ltd., Class H

     3,036,000       2,576,701  
   

 

 

  
      38,189,024  

CZECH REPUBLIC — 2.0%

 

CEZ AS

     186,636       4,899,401  

Komercni Banka AS

     80,958       3,515,526  
   

 

 

  
      8,414,927  

GREECE — 1.2%

 

OPAP SA

     439,604       4,909,555  
   

 

 

  

INDIA — 0.6%

 

Oil & Natural Gas Corp. Ltd.

     100       242  

Reliance Industries Ltd., GDR, NVS(b)

     70,452       2,409,458  
   

 

 

  
      2,409,700  

INDONESIA — 2.4%

 

Bank Pembangunan Daerah Jawa Timur
Tbk PT

     90,475,200       4,078,286  

Indo Tambangraya Megah
Tbk PT

     3,069,400       6,061,107  
   

 

 

  
      10,139,393  

MALAYSIA — 4.8%

 

Berjaya Sports Toto Bhd(a)

    8,137,013       4,724,071  

British American Tobacco Malaysia Bhd

     618,000       5,211,572  

Malayan Banking Bhd

     1,606,800       3,877,665  

Sime Darby Bhd

     7,848,600       4,865,553  

Telekom Malaysia Bhd(a)

    1,895,200       1,850,909  
   

 

 

  
      20,529,770  

MEXICO — 2.8%

 

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

     3,172,400       5,342,023  

Nemak SAB de CV(b)

    7,683,800       6,325,268  
   

 

 

  
      11,667,291  

PHILIPPINES — 1.7%

 

Globe Telecom Inc.

     120,510       4,164,125  

PLDT Inc.

     124,630       3,137,752  
   

 

 

  
      7,301,877  

POLAND — 0.5%

 

Powszechny Zaklad Ubezpieczen SA

     198,378       2,278,554  
   

 

 

  

QATAR — 3.9%

 

Barwa Real Estate Co.

     872,616       8,674,186  

Doha Bank QPSC

     75,840       529,795  
Security       
    
Shares		     Value  

United Development Co. QSC

     1,900,559     $ 7,234,277  
   

 

 

  
      16,438,258  

RUSSIA — 15.3%

 

Alrosa PJSC

     4,964,600       7,739,994  

Federal Grid Co. Unified Energy System PJSC

     2,004,450,000       5,473,910  

MegaFon PJSC, GDR(c)

    254,212       2,427,725  

MMC Norilsk Nickel PJSC

     22,454       3,915,933  

Mobile TeleSystems PJSC, ADR, NVS

     363,590       3,188,684  

Moscow Exchange MICEX-RTS PJSC

     2,667,700       4,403,592  

Novolipetsk Steel PJSC, GDR, GDR

     263,680       6,818,765  

PhosAgro PJSC, GDR, NVS(c)

    195,700       2,577,369  

Rostelecom PJSC

     5,156,820       5,809,919  

Severstal PJSC

     572,764       9,365,617  

Tatneft PJSC

     650,960       7,525,983  

Unipro PJSC

     123,188,000       5,334,412  
   

 

 

  
      64,581,903  

SOUTH AFRICA — 4.8%

 

Coronation Fund Managers Ltd.

     624,386       2,836,699  

Foschini Group Ltd. (The)

     121,952       1,603,217  

MTN Group Ltd.

     397,168       3,471,761  

RMB Holdings Ltd.

     396,962       2,496,857  

Telkom SA SOC Ltd.

     1,351,360       5,198,590  

Truworths International Ltd.

     347,110       2,169,247  

Woolworths Holdings Ltd./South Africa

     633,450       2,474,076  
   

 

 

  
      20,250,447  

TAIWAN — 27.6%

 

Arcadyan Technology Corp.

     2,834,000       6,767,015  

Asia Cement Corp.

     2,266,000       3,019,952  

Asustek Computer Inc.

     440,000       3,787,156  

Casetek Holdings Ltd.

     1,030,660       2,393,674  

Chong Hong Construction Co. Ltd.

     1,648,000       5,000,954  

Chunghwa Telecom Co. Ltd.

     824,000       2,853,074  

Far EasTone Telecommunications Co. Ltd.

     1,442,000       3,419,651  

Farglory Land Development Co. Ltd.

     7,416,263       7,570,334  

Highwealth Construction Corp.

     4,944,500       7,639,474  

Huaku Development Co. Ltd.

     2,085,000       4,454,139  

Inventec Corp.

     5,768,475       4,607,017  

Makalot Industrial Co. Ltd.

     739,829       3,286,625  

Merry Electronics Co. Ltd.

     1,034,000       5,505,390  

Mitac Holdings Corp.

     4,944,000       5,474,672  

Novatek Microelectronics Corp.

     810,000       3,915,855  

President Chain Store Corp.

     581,000       6,386,179  

Radiant Opto-Electronics Corp.

     1,366,000       2,882,459  

Simplo Technology Co. Ltd.

     659,600       3,824,361  

Sitronix Technology Corp.

     1,744,000       5,480,264  

Supreme Electronics Co. Ltd.

     6,180,000       6,974,554  

Systex Corp.

     2,884,000       5,868,988  

Taiwan Cement Corp.

     2,485,200       3,194,376  

Taiwan Mobile Co. Ltd.

     824,000       2,839,616  

TSRC Corp.

     2,060,925       2,154,230  

Wistron NeWeb Corp.

     1,071,633       2,667,356  

WPG Holdings Ltd.

     3,296,000       4,570,301  
   

 

 

  
      116,537,666  

THAILAND — 8.6%

    

Advanced Info Service PCL, NVDR

     391,400       2,376,399  

Charoen Pokphand Foods PCL, NVDR

     3,131,200       2,564,629  

Glow Energy PCL, NVDR

     1,854,000       5,210,370  

Jasmine International PCL, NVDR(a)

    27,150,800       4,406,803  

Kiatnakin Bank PCL, NVDR

     2,060,000       4,489,029  
 

 

     3  

Schedule of Investments (Unaudited) (Continued)

July 31, 2018

   

iSHARES® EMERGING MARKETS DIVIDEND ETF

(Percentages shown are based on Net Assets)

 

Security  

Shares

     Value  

Land & Houses PCL, NVDR

     13,901,100     $ 5,013,922  

PTT Global Chemical PCL, NVDR

     1,133,000       2,783,972  

Sansiri PCL, NVDR

     80,381,266       3,986,447  

Siam Cement PCL (The), NVDR

     185,100       2,492,480  

Thai Oil PCL, NVDR

     1,277,200       3,080,712  
   

 

 

  
      36,404,763  

TURKEY — 1.6%

 

Eregli Demir ve Celik Fabrikalari TAS

     916,700       2,061,595  

Tofas Turk Otomobil Fabrikasi AS

     511,086       2,394,577  

Turk Traktor ve Ziraat Makineleri AS

     222,892       2,329,264  
   

 

 

  
      6,785,436  

UNITED ARAB EMIRATES — 2.5%

    

DAMAC Properties Dubai Co. PJSC

     7,478,418       4,743,807  

Dubai Islamic Bank PJSC

     4,364,728       5,977,044  
   

 

 

  
      10,720,851  
   

 

 

  

TOTAL COMMON STOCKS — 95.3%
(Cost: $407,071,897)

       402,852,241  

PREFERRED STOCKS

 

BRAZIL — 2.0%

 

Cia. Energetica de Minas Gerais,
Preference Shares, NVS

     1,957,073       4,287,520  

Cia. Paranaense de Energia,
Preference Shares, NVS

     741,664       4,047,253  
   

 

 

  
      8,334,773  

RUSSIA — 1.5%

 

Bashneft PJSC, Preference Shares, NVS

     237,195       6,260,830  
   

 

 

  

TOTAL PREFERRED STOCKS — 3.5% (Cost: $17,305,696)

       14,595,603  
Security  

Shares

     Value  

SHORT-TERM INVESTMENTS

 

MONEY MARKET FUNDS — 2.7%

 

BlackRock Cash Funds: Institutional,
SL Agency Shares,

    

2.14%(d)(e)(f)

     9,439,532     $ 9,442,364  

BlackRock Cash Funds: Treasury,
SL Agency Shares,

    

1.83%(d)(e)

     2,138,362       2,138,362  
   

 

 

  
      11,580,726  
   

 

 

  

TOTAL SHORT-TERM INVESTMENTS — 2.7%
(Cost: $11,579,091)

 

     11,580,726  
   

 

 

  

TOTAL INVESTMENTS
IN SECURITIES — 101.5%
(Cost: $435,956,684)

       429,028,570  

Other Assets, Less Liabilities — (1.5)%

 

     (6,327,097 ) 
   

 

 

  

NET ASSETS — 100.0%

     $ 422,701,473  
   

 

 

  

 

(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) 

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

(d) 

Affiliate of the Fund.

(e) 

Annualized 7-day yield as of period-end.

(f) 

All or a portion of this security was purchased with cash collateral received from loaned securities.

 

 

  4     

Schedule of Investments (Unaudited) (Continued)

July 31, 2018

    iSHARES® EMERGING MARKETS DIVIDEND ETF

 

Affiliates

Investments in issuers considered to be affiliates of the Fund during the three months ended July 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
04/30/18		      Net activity     Shares
held at
07/31/18		      Value at
07/31/18		      Income     Net realized
gain (loss)		      Change in
unrealized
appreciation
(depreciation)		  

BlackRock Cash Funds: Institutional,
SL Agency Shares

      10,155,601        (716,069 )      9,439,532      $ 9,442,364      $ 64,022 (a)     $ 535      $ 1,580  

BlackRock Cash Funds: Treasury,
SL Agency Shares

      504,263        1,634,099       2,138,362        2,138,362        3,978       —        —  
          

 

 

     

 

 

    

 

 

     

 

 

  
           $ 11,580,726      $ 68,000     $ 535      $ 1,580  
          

 

 

     

 

 

    

 

 

     

 

 

  
   

 

  (a)    Includes 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, and less fees paid to BTC as securities lending agent.

Futures Contracts

Futures contracts outstanding as of July 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

      137        09/21/18      $ 7,510      $ 149,280  

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 July 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

    $ 386,413,983      $ 16,438,258      $ —      $ 402,852,241  

Preferred Stocks

      14,595,603        —        —        14,595,603  

Money Market Funds

      11,580,726        —        —        11,580,726  
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 412,590,312      $ 16,438,258      $ —      $ 429,028,570  
  

 

 

     

 

 

     

 

 

     

 

 

  

Derivative financial instruments(a)

 

Assets

 

Futures Contracts

    $ 149,280      $ —      $ —      $ 149,280  
  

 

 

     

 

 

     

 

 

     

 

 

  
                                     

 

  (a)    Shown at the unrealized appreciation (depreciation) on the contracts.

Portfolio Abbreviations — Equity

ADR  —  American Depositary Receipt

GDR  —  Global Depositary Receipt

NVDR  —  Non-Voting Depositary Receipt

NVS  —  Non-Voting Shares

 

   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 is 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:   September 28, 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:   September 28, 2018
By:  

/s/ Jack Gee

  Jack Gee, Treasurer and Chief Financial Officer (Principal Financial Officer)
Date:   September 28, 2018