N-Q 1 d694697dnq.htm ISHARES, INC. iShares, Inc.

 

 

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

2405 York Road, Suite 201, Lutherville-Timonium, Maryland 21093

(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: January 31, 2019

 

 

 

Item 1.

Schedules of Investments.

Schedule of Investments (unaudited)   iShares® Asia/Pacific Dividend ETF

January 31, 2019

   (Percentages shown are based on Net Assets)

 

Security    Shares      Value  

 

  

Common Stocks

      

Australia — 49.3%

      

Amcor Ltd./Australia

      78,873      $ 785,015  

AusNet Services

      892,468        1,073,726  

Australia & New Zealand Banking Group Ltd.

      53,657        979,274  

Bendigo & Adelaide Bank Ltd.

      157,659        1,239,237  

Commonwealth Bank of Australia

      20,598        1,049,980  

Fortescue Metals Group Ltd.

      415,904        1,713,399  

Harvey Norman Holdings Ltd.

      444,538        1,092,335  

Monadelphous Group Ltd.

      68,394        736,572  

National Australia Bank Ltd.

      60,716        1,056,308  

Suncorp Group Ltd.

      106,451        1,007,491  

Sydney Airport

      219,448        1,049,669  

Tabcorp Holdings Ltd.

      301,454        1,022,094  

Telstra Corp. Ltd.

      563,186        1,277,112  

Westpac Banking Corp.

      56,204        1,006,087  

Woodside Petroleum Ltd.

      40,736        1,019,395  
     

 

 

  
          16,107,694  

Hong Kong — 29.2%

      

Giordano International Ltd.

      3,314,000        1,664,032  

Hang Seng Bank Ltd.

      31,500        720,991  

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

     1,252,500        1,275,374  

Kerry Properties Ltd.

      172,500        712,274  

New World Development Co. Ltd.

      570,000        893,497  

NWS Holdings Ltd.

      534,000        1,222,251  

PCCW Ltd.

      2,490,000        1,481,935  

Sino Land Co. Ltd.

      450,000        806,326  

VTech Holdings Ltd.

      81,000        772,662  
     

 

 

  
        9,549,342  

Japan — 2.5%

      

Nissan Motor Co. Ltd.

      96,700        823,500  
     

 

 

  

New Zealand — 12.8%

      

Sky Network Television Ltd.

      1,015,637        1,331,403  
Security    Shares      Value  

 

  

New Zealand (continued)

      

SKYCITY Entertainment Group Ltd.

      385,749      $ 1,027,413  

Spark New Zealand Ltd.

      648,417        1,823,704  
     

 

 

  
        4,182,520  

Singapore — 6.0%

      

Singapore Telecommunications Ltd.(a)

     438,000        983,721  

StarHub Ltd.(a)

     746,182        987,769  
     

 

 

  
        1,971,490  
     

 

 

  

Total Common Stocks — 99.8%
(Cost: $37,986,820)

 

        32,634,546  
     

 

 

  

Short-Term Investments

      

Money Market Funds — 5.0%

      

BlackRock Cash Funds: Institutional, SL Agency Shares, 2.62%(b)(c)(d)

     1,606,411        1,606,893  

BlackRock Cash Funds: Treasury, SL Agency Shares, 2.31%(b)(c)

     13,094        13,094  
     

 

 

  
        1,619,987  
     

 

 

  

Total Short-Term Investments — 5.0%
(Cost: $1,619,674)

 

      1,619,987  
     

 

 

  

Total Investments in Securities — 104.8%
(Cost: $39,606,494)

 

      34,254,533  

Other Assets, Less Liabilities — (4.8)%

 

      (1,571,670 ) 
     

 

 

  

Net Assets — 100.0%

 

    $ 32,682,863  
     

 

 

  

 

(a) 

All or a portion of this security is on loan.

(b) 

Affiliate of the Fund.

(c) 

Annualized 7-day yield as of period-end.

(d) 

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

 

 

Affiliates

Investments in issuers considered to be affiliates of the Fund during the nine months ended January 31, 2019, 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
01/31/19

      Value at
01/31/19		      Income     Net Realized
Gain (Loss)		      Change in
Unrealized
Appreciation
(Depreciation)		  

 

  

BlackRock Cash Funds: Institutional, SL Agency Shares

      370,188        1,236,223        1,606,411      $ 1,606,893      $ 2,116 (a)     $ 71      $ 276  

BlackRock Cash Funds: Treasury, SL Agency Shares

      5,356        7,738        13,094        13,094        475       —        —  
           

 

 

     

 

 

    

 

 

     

 

 

  
            $ 1,619,987      $ 2,591     $ 71      $ 276  
           

 

 

     

 

 

    

 

 

     

 

 

  

 

  (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.

 

1

Schedule of Investments (unaudited) (continued)   iShares® Asia/Pacific Dividend ETF

January 31, 2019

  

 

Fair Value Measurements (continued)

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of January 31, 2019. 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

    $ 32,634,546      $ —      $ —      $ 32,634,546  

Money Market Funds

      1,619,987            —            —        1,619,987  
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 34,254,533      $ —      $ —      $ 34,254,533  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

2

Schedule of Investments (unaudited)   iShares® Emerging Markets Dividend ETF

January 31, 2019

   (Percentages shown are based on Net Assets)

 

Security    Shares      Value  

 

  

Common Stocks

      

Brazil — 7.5%

      

AES Tiete Energia SA, NVS

      2,545,200      $ 8,139,777  

CCR SA

      1,454,400        5,940,890  

EDP - Energias do Brasil SA

      1,212,000        5,586,219  

Engie Brasil Energia SA

      794,850        9,131,567  

Multiplus SA

      1,030,200        7,352,915  

Transmissora Alianca de Energia Eletrica SA, NVS

      1,515,000        10,696,662  
     

 

 

  
          46,848,030  

China — 9.4%

      

Agile Group Holdings Ltd.

      1,818,000        2,404,940  

Agricultural Bank of China Ltd., Class H

      9,090,000        4,274,676  

Bank of China Ltd., Class H

      9,696,000        4,473,157  

China Construction Bank Corp., Class H

      4,242,000        3,789,672  

China Power International Development Ltd.

      38,481,999        9,906,539  

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

      3,030,000        6,016,210  

Industrial & Commercial Bank of China Ltd., Class H

      5,151,000        3,978,113  

Seaspan Corp.(a)

     1,539,543        14,317,750  

Shenzhen Investment Ltd.(a)

     13,332,000        4,638,429  

Zhejiang Expressway Co. Ltd., Class H

      4,848,000        4,967,428  
     

 

 

  
        58,766,914  

Czech Republic — 1.9%

      

CEZ AS

      294,213        7,432,485  

Komercni Banka AS

      110,292        4,452,063  
     

 

 

  
        11,884,548  

Greece — 1.0%

      

OPAP SA

      639,330        6,253,931  
     

 

 

  

Indonesia — 2.3%

      

Bank Pembangunan Daerah Jawa Timur Tbk PT

      132,380,700        7,058,409  

Indo Tambangraya Megah Tbk PT

      4,545,000        7,416,425  
     

 

 

  
        14,474,834  

Malaysia — 4.6%

      

Berjaya Sports Toto Bhd

      12,301,813        6,787,621  

British American Tobacco Malaysia Bhd

      909,000        8,504,121  

Malayan Banking Bhd

      2,181,600        5,081,168  

Sime Darby Bhd

      11,483,700        6,280,149  

Telekom Malaysia Bhd(a)

     2,969,400        2,109,608  
     

 

 

  
        28,762,667  

Mexico — 2.6%

      

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

      4,817,700        7,248,735  

Nemak SAB de CV(b)

     11,332,200        8,921,281  
     

 

 

  
        16,170,016  

Philippines — 1.8%

      

Globe Telecom Inc.

      180,285        6,988,595  

PLDT Inc.

      184,830        4,575,527  
     

 

 

  
        11,564,122  

Poland — 0.5%

      

Powszechny Zaklad Ubezpieczen SA

      288,456        3,468,944  
     

 

 

  

Qatar — 4.1%

      

Barwa Real Estate Co.

      942,330        10,508,173  

Doha Bank QPSC

      1,131,402        6,548,347  

United Development Co. QSC

      1,965,561        9,035,392  
     

 

 

  
        26,091,912  

Russia — 13.8%

      

Alrosa PJSC

      7,320,480        11,018,933  

Federal Grid Co. Unified Energy System PJSC

      2,173,560,000        5,516,323  
Security    Shares      Value  

 

  

Russia (continued)

      

MMC Norilsk Nickel PJSC

      33,936      $ 7,046,462  

Mobile TeleSystems PJSC, ADR, NVS

      546,612        4,700,863  

Moscow Exchange MICEX-RTS PJSC(c)

     2,919,280        4,138,249  

Novolipetsk Steel PJSC, GDR

      392,991        9,195,989  

PhosAgro PJSC, GDR, NVS(d)

     295,425        4,023,689  

Rostelecom PJSC

      7,719,380        8,517,645  

Severstal PJSC

      848,400        12,937,430  

Tatneft PJSC

      902,940        11,126,995  

Unipro PJSC

      200,513,384        8,424,289  
     

 

 

  
          86,646,867  

South Africa — 4.7%

      

Coronation Fund Managers Ltd.(a)

     872,640        2,714,588  

Foschini Group Ltd. (The)

      188,163        2,401,312  

MTN Group Ltd.

      582,972        3,823,365  

RMB Holdings Ltd.

      561,459        3,533,341  

Telkom SA SOC Ltd.(a)

     1,954,653        9,886,685  

Truworths International Ltd.

      606,000        3,657,920  

Woolworths Holdings Ltd./South Africa

      918,999        3,478,622  
     

 

 

  
        29,495,833  

Taiwan — 28.3%

      

Arcadyan Technology Corp.

      4,242,000        13,048,484  

Asia Cement Corp.

      3,333,000        3,954,490  

Asustek Computer Inc.

      634,000        4,870,335  

Casetek Holdings Ltd.

      1,515,660        2,405,105  

Chong Hong Construction Co. Ltd.

      2,424,000        6,667,253  

Chunghwa Telecom Co. Ltd.

      1,212,000        4,221,278  

Far EasTone Telecommunications Co. Ltd.

      2,121,000        4,943,235  

Farglory Land Development Co. Ltd.

      11,285,263        13,701,815  

Highwealth Construction Corp.

      7,575,500        11,823,811  

Huaku Development Co. Ltd.

      3,055,000        7,149,862  

Inventec Corp.

      8,484,475        6,531,512  

Makalot Industrial Co. Ltd.

      1,030,829        6,375,259  

Merry Electronics Co. Ltd.

      1,471,943        7,474,346  

Mitac Holdings Corp.

      8,603,975        7,715,753  

Novatek Microelectronics Corp.

      1,212,000        6,233,289  

President Chain Store Corp.

      909,000        9,542,259  

Radiant Opto-Electronics Corp.

      2,121,000        6,013,349  

Simplo Technology Co. Ltd.

      962,600        6,955,949  

Sitronix Technology Corp.

      2,424,000        8,679,264  

Supreme Electronics Co. Ltd.

      9,090,000        8,625,018  

Systex Corp.

      4,242,000        8,919,916  

Taiwan Cement Corp.

      3,636,200        4,420,750  

Taiwan Mobile Co. Ltd.

      1,212,000        4,319,906  

TSRC Corp.

      3,030,925        2,757,494  

Wistron NeWeb Corp.

      1,818,707        4,463,666  

WPG Holdings Ltd.

      4,545,280        5,762,696  
     

 

 

  
        177,576,094  

Thailand — 8.5%

      

Advanced Info Service PCL, NVDR(a)

     606,000        3,462,303  

Charoen Pokphand Foods PCL, NVDR

      4,757,100        4,149,187  

Glow Energy PCL, NVDR

      2,878,500        8,499,372  

Jasmine International PCL, NVDR(a)

     40,056,600        6,538,806  

Kiatnakin Bank PCL, NVDR

      2,939,100        6,444,054  

Land & Houses PCL, NVDR

      21,119,100        7,232,916  

PTT Global Chemical PCL, NVDR

      1,636,200        3,561,226  

Sansiri PCL, NVDR(a)

     117,382,266        5,072,131  

Siam Cement PCL (The), NVDR

      272,800        4,086,434  

Thai Oil PCL, NVDR

      1,878,600        4,329,333  
     

 

 

  
        53,375,762  
 

 

3

Schedule of Investments (unaudited) (continued)   iShares® Emerging Markets Dividend ETF

January 31, 2019

   (Percentages shown are based on Net Assets)

 

Security    Shares      Value  

 

  

Turkey — 1.2%

      

Eregli Demir ve Celik Fabrikalari TAS

      1,335,018      $ 2,189,823  

Tofas Turk Otomobil Fabrikasi AS(a)

     756,894        3,079,694  

Turk Traktor ve Ziraat Makineleri AS

      341,178        2,535,154  
     

 

 

  
        7,804,671  

United Arab Emirates — 2.0%

      

DAMAC Properties Dubai Co. PJSC

      11,191,911        3,991,670  

Dubai Islamic Bank PJSC

      6,109,692        8,483,373  
     

 

 

  
        12,475,043  
     

 

 

  

Total Common Stocks — 94.2%
(Cost: $575,878,152)

 

        591,660,188  
     

 

 

  

Preferred Stocks

      

Brazil — 3.4%

      

Cia. Energetica de Minas Gerais, Preference Shares, NVS

      2,878,573        10,944,393  

Cia. Paranaense de Energia, Preference Shares, NVS

      1,060,564        10,280,146  
     

 

 

  
        21,224,539  

Russia — 1.2%

      

Bashneft PJSC, Preference Shares, NVS

      281,485        7,716,476  
     

 

 

  

Total Preferred Stocks — 4.6%
(Cost: $23,970,101)

 

      28,941,015  
     

 

 

  

Short-Term Investments

 

   

Money Market Funds — 3.1%

 

BlackRock Cash Funds: Institutional, SL Agency Shares, 2.62%(e)(f)(g)

     17,374,826        17,380,038  

Security

      Shares        Value  

 

  

Money Market Funds (continued)

      

BlackRock Cash Funds: Treasury, SL Agency Shares, 2.31%(e)(f)

     1,872,922      $ 1,872,922  
     

 

 

  
        19,252,960  
     

 

 

  

Total Short-Term Investments — 3.1%
(Cost: $19,250,172)

 

      19,252,960  
     

 

 

  

Total Investments in Securities — 101.9%
(Cost: $619,098,425)

 

        639,854,163  

Other Assets, Less Liabilities — (1.9)%

 

      (12,081,621 ) 
     

 

 

  

Net Assets — 100.0%

       $ 627,772,542  
     

 

 

  

 

(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) 

Non-income producing security.

(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.

 

 

Affiliates

Investments in issuers considered to be affiliates of the Fund during the nine months ended January 31, 2019, 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
01/31/19

      Value at
01/31/19		      Income     Net Realized
Gain (Loss)		      Change in
Unrealized
Appreciation
(Depreciation)		  

 

  

BlackRock Cash Funds: Institutional, SL Agency Shares

      10,155,601        7,219,225        17,374,826      $ 17,380,038      $ 241,809 (a)     $ 687      $ 2,733  

BlackRock Cash Funds: Treasury, SL Agency Shares

      504,263        1,368,659        1,872,922        1,872,922        16,186       —        —  
           

 

 

     

 

 

    

 

 

     

 

 

  
            $ 19,252,960      $ 257,995     $ 687      $ 2,733  
           

 

 

     

 

 

    

 

 

     

 

 

  

 

  (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

 

 

  
Description    Number of
Contracts		      Expiration
Date		      Notional
Amount
(000)		      Value/
Unrealized
Appreciation
(Depreciation)		  

 

  

Long Contracts

            

MSCI Emerging Markets E-Mini

      46        03/15/19      $  2,449      $ 104,935  
           

 

 

  

 

4

Schedule of Investments (unaudited) (continued)   iShares® Emerging Markets Dividend ETF

January 31, 2019

  

 

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, 2019. 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

    $ 591,660,188      $ —      $ —      $ 591,660,188  

Preferred Stocks

      28,941,015          —        —        28,941,015  

Money Market Funds

      19,252,960        —          —        19,252,960  
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 639,854,163      $ —      $ —      $ 639,854,163  
  

 

 

     

 

 

     

 

 

     

 

 

  

Derivative financial instruments(a)

           

Assets

            

Futures Contracts

    $ 104,935      $ —      $ —      $ 104,935  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

  (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 Treasurer 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:   April 01, 2019

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:   April 01, 2019
By:  

/s/ Jack Gee

  Jack Gee, Treasurer and Chief Financial Officer (Principal Financial Officer)
Date:   April 01, 2019