Annual report

[Pages:27]Annual report

BlackRock Gold and General Fund

For the year ended 28 February 2019

Contents

General Information About the Fund Investment Objective & Policy Fund Managers Significant Events Risk and Reward Profile Performance Table Classification of Investments Investment Report Performance Record Distribution Table Report on Remuneration Portfolio Statement Statement of Total Return Statement of Change in Net Assets Attributable to Unitholders Balance Sheet Notes to Financial Statements Statement of Manager's Responsibilities Statement of the Trustee's Responsibilities in Respect of the Fund and Report of the Trustee to the Unitholders of the Fund for the Year Ended 28 February 2019 Independent Auditor's Report Supplementary Information

1 BlackRock Gold and General Fund

General Information

Manager & Registrar

2

BlackRock Fund Managers Limited

3

12 Throgmorton Avenue, London EC2N 2DL

3

Member of The Investment Association and authorised and regulated by the Financial Conduct Authority ("FCA").

3

Directors of the Manager

G D Bamping* C L Carter M B Cook (appointed 2 May 2018) W I Cullen* 3

R A Damm (resigned 31 December 2018) R A R Hayes A M Lawrence

4

L E Watkins (appointed 16 May 2018, resigned 1 March 2019) M T Zemek*

5

* Non-executive Director.

6

Trustee* & Custodian

The Bank of New York Mellon (International) Limited

7

One Canada Square, London E14 5AL

9

Authorised by the Prudential Regulation Authority and regulated by the FCA and the Prudential

13

Regulation Authority.

14

* On 18 June 2018 the Trustee changed from BNY Mellon Trust & Depositary (UK) Limited to The Bank of New York Mellon (International) Limited.

20

Investment Manager

BlackRock Investment Management (UK) Limited

23

12 Throgmorton Avenue, London EC2N 2DL

23

Authorised and regulated by the FCA.

24 Securities Lending Agent

25

BlackRock Advisors (UK) Limited

12 Throgmorton Avenue, London EC2N 2DL 43

Authorised and regulated by the FCA.

44 Auditor

45

Ernst & Young LLP

Atria One, 144 Morrison Street, Edinburgh EH3 8EX

48

BlackRock's proxy voting agent is ISS (Institutional Shareholder Services).

This Report relates to the packaged products of and is issued by: BlackRock Fund Managers Limited 12 Throgmorton Avenue, London EC2N 2DL Telephone: 020 7743 3000 Dealing and Investor Services: 0800 44 55 22 blackrock.co.uk

For your protection, telephone calls are usually recorded.

BlackRock Gold and General Fund 2

About the Fund

BlackRock Gold and General Fund (the "Fund") is a UCITS scheme under the COLL Sourcebook. The Fund was established on 16 March 1988. The Fund was previously known as James Capel Gold and General Fund. On 17 December 1991 the Manager took over management of the Fund and its name was changed to Mercury Gold and General Fund. On 30 September 2000 the Fund changed its name to Merrill Lynch Gold and General Fund. The Fund adopted its present name with effect from 28 April 2008. The Fund's FCA product reference number is 113856.

Investment Objective & Policy

The Fund seeks to achieve long-term capital growth primarily through an actively managed portfolio of gold mining, commodity and precious-metal related shares. The Fund may also invest in other transferable securities and units in collective investment schemes. Derivatives may be used for investment purposes and for the purposes of efficient portfolio management.

Fund Managers

As at 28 February 2019, the Fund Managers of the Fund are Evy Hambro and Tom Holl.

Significant Events

Changes in the Directors of the Manager M B Cook was appointed as a Director effective 2 May 2018. L E Watkins was appointed as a Director effective 16 May 2018, and resigned as a Director effective 1 March 2019. R A Damm resigned as a Director effective 31 December 2018.

Changes to the Trustee On 18 June 2018 the Trustee changed from BNY Mellon Trust & Depositary (UK) Limited to The Bank of New York Mellon (International) Limited.

Risk and Reward Profile

Unit Class A Income A Accumulation D Income D Accumulation DI Income DI Accumulation X Income X Accumulation

Lower risk Typically lower rewards

Higher risk Typically higher rewards

1

2

3

4

5

6

7

1

2

3

4

5

6

7

1

2

3

4

5

6

7

1

2

3

4

5

6

7

1

2

3

4

5

6

7

1

2

3

4

5

6

7

1

2

3

4

5

6

7

1

2

3

4

5

6

7

? The risk indicator was calculated incorporating historical or simulated historical data and may not be a reliable indication of the future risk profile of the Fund.

? The risk category shown is not guaranteed and may change over time. ? The lowest category does not mean risk free.

For more information on this, please see the Fund's Key Investor Information Documents ("KIIDs"), which are available at .

3 BlackRock Gold and General Fund

BlackRock Gold and General Fund 4

Performance Table

CAPITAL RETURN Class D Accumulation Units BlackRock Gold and General Fund FTSE Gold Mines Index#

For the year For the three years For the five years

to 28.2.2019

to 28.2.2019

to 28.2.2019

+4.6% +6.2%

+15.4% +17.1%

+11.9% +12.8%

All Fund figures quoted are based on bid-to-bid dealing prices (the price at which units are sold) and are calculated net of fees. Performance returns are cumulative. All returns are in Sterling. # Benchmark return is on a capital return basis. Figures from Datastream.

All financial investments involve an element of risk. Therefore, the value of your investment and the income from it will vary and the return of your initial investment amount cannot be guaranteed. Changes in exchange rates may cause the value of an investment to fluctuate. Past performance is not a guide to future performance and should not be the sole factor of consideration when selecting a product.

Classification of Investments

The following charts provide an analysis of the equity portfolio weightings as at 28 February 2019 and 28 February 2018 by their respective geographical locations.

28 February 2019

Australia 17.02% Canada 49.99% Egypt 2.32% Jersey 0.53% Mexico 4.23% Monaco 3.02% Russia 5.09% South Africa 4.92% United Kingdom 3.36% United States 7.22% Other 2.30%

28 February 2018

Australia 18.37% Canada 45.61% Egypt 3.20% Jersey 8.62% Mexico 4.38% Monaco 2.51% Russia 4.81% South Africa 2.54% United Kingdom 1.16% United States 7.26% Other 1.54%

5 BlackRock Gold and General Fund

BlackRock Gold and General Fund 6

Investment Report

Summary of Performance over the Year The Fund returned 4.6%* over the year to 28 February 2019, very regrettably underperforming its performance measure, the FTSE Gold Mines Index, which returned 6.2%. Over the six-month period to 28 February 2019, the Fund returned 15.1%*, very regrettably underperforming its performance measure, which returned 18.8%.

Market Review Gold prices ended the review period marginally lower. Trade tensions between China and the US contributed to bouts of `risk off' behaviour (moving to lower risk investments) and fuelled demand for `safe havens', including gold. However, this was offset by expectations of higher US interest rates, which bolstered the US dollar. The market felt the effects of a stronger US dollar (there tends to be an inverse relationship between gold and the US dollar), which contributed to gold prices slipping below $1,200 per troy ounce in August 2018. However, from the fourth quarter of 2018 onwards, gold prices rose again, as `safe haven' buying provided support to the precious metal during a time of equity market volatility.

Elsewhere, the World Gold Council reported that central banks' purchases of gold hit US$27 billion in 2018, their highest level in almost 50 years. This was driven by emerging market central banks, as they boosted gold reserves in order to reduce overreliance on the US dollar as a currency reserve and as a hedge against geopolitical and economic uncertainty. Furthermore, in terms of company news, Barrick Gold and Randgold Resources merged during the period, creating the world's largest gold company.

Fund Performance and Activity Within the Fund, not holding a position in Kirkland Lake was the largest detractor, as the company outperformed on its exploration success.

Holding a higher weighting than the performance measure in Mexico exposed stock Fresnillo also appeared among the largest detractors. Fresnillo's share price came under pressure, due to fears that Mexico's new government, led by President Andr?s Manuel L?pez Obrador, could trigger changes in mining fiscal terms.

On the positive side, our position, not on the performance measure, held in Nevsun Resources appeared among the top performers. Nevsun Resources accepted a takeover bid from Zijin Mining during the year, as Zijin offered the company a superior deal to the multiple takeover attempts from Lundin Mining in previous months.

Outlook We see a compelling case for owning gold today as a source of diversification. It has been encouraging, in our view, to see gold respond positively to recent equity market weakness, despite US dollar strength, and reaffirm its status as a `safe haven' asset. The strength of economic growth is less certain, geopolitical risk is elevated and, despite the recent falls, broader equity market valuations are still high. Should we see further equity market weakness, a deterioration in economic growth, worsening trade tensions and/or the US Federal Reserve raising rates slower than currently expected, then we would expect gold to perform well. While this is not guaranteed, we believe the risk of such events occurring has significantly increased since this time last year, and hence the need for diversification.

Outlook continued This year, we expect investment demand (futures positioning and exchange traded fund holdings) to be the primary driver of the gold price. In the longer term, we expect increasing Asian physical demand and mine production plateauing, as a result of cutbacks in company spending, to support the gold price.

Given margins today, we expect gold equities to increase by an even greater percentage than the gold price over the next 12 to 18 months.

March 2019

* P erformance figures quoted are based on bid-to-bid dealing prices (the price at which units are sold). Performance is calculated net of fees and reported for the Fund's class D Accumulation Units.

7 BlackRock Gold and General Fund

BlackRock Gold and General Fund 8

Performance Record

Comparative Table

A Income Units

A Accumulation Units

For the year to 28.2.2019

For the year to 28.2.2018

For the year to 28.2.2017

For the year to 28.2.2019

For the year to 28.2.2018

For the year to 28.2.2017

Pence per unit Pence per unit Pence per unit Pence per unit Pence per unit Pence per unit

Change in net assets per unit

Opening net asset value per unit

773.5

974.5

710.2

815.1

1,027

748.3

Return before operating charges Operating charges

44.52 (14.70)

(183.55) (17.50)

282.7 (18.38)

46.98 (15.57)

(193.59) (18.34)

297.9 (19.36)

Return after operating charges Distributions Retained distributions on accumulation units Closing net asset value per unit After direct transaction costs of

29.82 (1.34)

N/A 802.0 (0.84)

(201.05) 0.00

N/A 773.5 (0.67)

264.3 0.00

N/A 974.5 (0.93)

31.41 (1.37)

1.37 846.5 (0.88)

(211.93) 0.00

0.00 815.1 (0.71)

278.5 0.00

0.00 1,027 (0.98)

Performance Return after charges1

3.86%

(20.63)%

37.21%

3.85%

(20.64)%

37.22%

Other information Closing net asset value (?000's) Closing number of units Operating charges2 Direct transaction costs3

33,421 4,167,323

1.92% 0.11%

42,039 5,435,246

1.93% 0.07%

93,902 9,636,412

1.92% 0.09%

264,095 31,198,103

1.93% 0.11%

342,339 42,001,036

1.92% 0.07%

434,614 42,326,609

1.92% 0.09%

Prices Highest offer unit price Lowest bid unit price

Pence per unit Pence per unit Pence per unit Pence per unit Pence per unit Pence per unit

902.5

1,104

1,292

951.0

1,163

1,361

662.6

772.5

691.2

698.2

814.1

728.4

1The return after charges figures are based on the net asset value reported for financial statements purposes and are not the same as the performance returns figures quoted in the Performance Table and the Investment Report which are based on bid-to-bid dealing prices (the price at which units are sold).

2Operating charges are annualised and exclude portfolio trade-related costs, except costs paid to the custodian/trustee and entry/exit charges paid to an underlying collective investment scheme (if any).

3Direct transaction costs are annualised and principally comprise commissions and taxes, attributable to the Fund's purchase and sale of equity instruments. See note 13 for further details.

Comparative Table

D Income Units

D Accumulation Units

For the year to 28.2.2019

For the year to 28.2.2018

For the year to 28.2.2017

For the year to 28.2.2019

For the year to 28.2.2018

For the year to 28.2.2017

Pence per unit Pence per unit Pence per unit Pence per unit Pence per unit Pence per unit

Change in net assets per unit

Opening net asset value per unit

813.3

1,017

735.5

866.8

1,084

783.9

Return before operating charges Operating charges

47.20 (9.45)

(192.53) (11.11)

293.0 (11.54)

50.27 (10.07)

(205.40) (11.84)

312.1 (12.30)

Return after operating charges Distributions Retained distributions on accumulation units Closing net asset value per unit After direct transaction costs of

37.75 (7.49)

N/A 843.6 (0.88)

(203.64) (0.10)

N/A 813.3 (0.70)

281.5 0.00

N/A 1,017 (0.97)

40.20 (7.95)

7.95 907.0 (0.94)

(217.24) (0.10)

0.10 866.8 (0.75)

299.8 0.00

0.00 1,084 (1.03)

Performance Return after charges1

4.64%

(20.02)%

38.27%

4.64%

(20.04)%

38.25%

Other information Closing net asset value (?000's) Closing number of units Operating charges2 Direct transaction costs3

203,905 24,171,943

1.17% 0.11%

176,039 21,646,021

1.17% 0.07%

212,964 20,941,395

1.16% 0.09%

288,564 31,815,429

1.17% 0.11%

316,464 36,511,367

1.17% 0.07%

406,827 37,540,046

1.16% 0.09%

Prices Highest offer unit price Lowest bid unit price

Pence per unit Pence per unit Pence per unit Pence per unit Pence per unit Pence per unit

910.4

1,098

1,279

970.3

1,170

1,362

699.5

812.4

716.0

745.5

865.7

763.0

1The return after charges figures are based on the net asset value reported for financial statements purposes and are not the same as the performance returns figures quoted in the Performance Table and the Investment Report which are based on bid-to-bid dealing prices (the price at which units are sold).

2Operating charges are annualised and exclude portfolio trade-related costs, except costs paid to the custodian/trustee and entry/exit charges paid to an underlying collective investment scheme (if any).

3Direct transaction costs are annualised and principally comprise commissions and taxes, attributable to the Fund's purchase and sale of equity instruments. See note 13 for further details.

9 BlackRock Gold and General Fund

BlackRock Gold and General Fund 10

Performance Record continued

Comparative Table

DI Income Units

DI Accumulation Units

For the year to 28.2.2019

For the year to 28.2.2018

For the year to 28.2.2017

For the year to 28.2.2019

For the year to 28.2.2018

For the year to 28.2.2017

Pence per unit Pence per unit Pence per unit Pence per unit Pence per unit Pence per unit

Change in net assets per unit

Opening net asset value per unit

854.9

1,070

771.6

877.7

1,094

789.5

Return before operating charges Operating charges

49.83 (7.65)

(203.19) (9.00)

307.4 (9.41)

51.15 (7.86)

(207.06) (9.21)

314.4 (9.52)

Return after operating charges Distributions Retained distributions on accumulation units Closing net asset value per unit After direct transaction costs of

42.18 (10.20)

N/A 886.9 (0.93)

(212.19) (2.88)

N/A 854.9 (0.74)

298.0 0.00

N/A 1,070 (1.02)

43.29 (10.47)

10.47 921.0 (0.95)

(216.27) (2.93)

2.93 877.7 (0.76)

304.9 0.00

0.00 1,094 (1.04)

Performance Return after charges1

4.93%

(19.83)%

38.61%

4.93%

(19.77)%

38.62%

Other information Closing net asset value (?000's) Closing number of units Operating charges2 Direct transaction costs3

7,315 824,766 0.90% 0.11%

7,316 855,799 0.90% 0.07%

8,934 835,293 0.90% 0.09%

51,502 5,591,996

0.90% 0.11%

43,176 4,919,041

0.90% 0.07%

51,773 4,730,751

0.89% 0.09%

Prices Highest offer unit price Lowest bid unit price

Pence per unit Pence per unit Pence per unit Pence per unit Pence per unit Pence per unit

959.6

1,155

1,343

985.2

1,182

1,374

736.4

854.9

751.1

756.0

876.6

768.4

1The return after charges figures are based on the net asset value reported for financial statements purposes and are not the same as the performance returns figures quoted in the Performance Table and the Investment Report which are based on bid-to-bid dealing prices (the price at which units are sold).

2Operating charges are annualised and exclude portfolio trade-related costs, except costs paid to the custodian/trustee and entry/exit charges paid to an underlying collective investment scheme (if any).

3Direct transaction costs are annualised and principally comprise commissions and taxes, attributable to the Fund's purchase and sale of equity instruments. See note 13 for further details.

Comparative Table

Change in net assets per unit Opening net asset value per unit Return before operating charges Operating charges Return after operating charges Distributions Retained distributions on accumulation units Closing net asset value per unit After direct transaction costs of

X Income Units

X Accumulation Units

For the year to 28.2.2019

For the period from

For the period from

12.9.2017^ to 28.2.2018 24.5.2018^ to 28.2.2019

Pence per unit

Pence per unit

Pence per unit

81.43 4.71 (0.02) 4.69 (1.62) N/A 84.50 (0.09)

100.0 (18.35)

0.00 (18.35) (0.22)

N/A 81.43 (0.03)

100.0 1.32 (0.01) 1.31 (1.28) 1.28 101.3 (0.10)

Performance Return after charges1

5.76%

(18.35)%

1.31%

Other information Closing net asset value (?000's) Closing number of units

Operating charges?

Direct transaction costs3

19,694 23,305,603

0.02% 0.11%

21,268 26,118,503

0.01% 0.07%

7,822 7,720,714

0.01% 0.11%

Prices Highest offer unit price Lowest bid unit price

Pence per unit 92.13 70.45

Pence per unit 100.6 81.55

Pence per unit 108.4 82.86

^ The date of commencement of operations. 1The return after charges figures are based on the net asset value reported for financial statements purposes and are not the same as the performance returns figures quoted in

the Performance Table and the Investment Report which are based on bid-to-bid dealing prices (the price at which units are sold). 2Operating charges are annualised and exclude portfolio trade-related costs, except costs paid to the custodian/trustee and entry/exit charges paid to an underlying collective

investment scheme (if any). 3Direct transaction costs are annualised and principally comprise commissions and taxes, attributable to the Fund's purchase and sale of equity instruments.

See note 13 for further details.

11 BlackRock Gold and General Fund

BlackRock Gold and General Fund 12

Distribution Table

for the year ended 28 February 2019

Final Distribution in Pence per Unit Group 1 ? Units purchased prior to 1 March 2018 Group 2 ? Units purchased 1 March 2018 to 28 February 2019

A Income Units

A Accumulation Units

D Income Units

D Accumulation Units

DI Income DI Accumulation

Units

Units

X Income Units

X Accumulation Units*

Group 1 Group 2 Group 1 Group 2 Group 1 Group 2 Group 1 Group 2 Group 1 Group 2 Group 1 Group 2 Group 1 Group 2 Group 1 Group 2

Net revenue (dividend) Equalisation Distribution paid 30.4.2019 Distribution paid 30.4.2018

1.3404 0.0860 1.3656 0.3018 7.4902 4.1073 7.9514 3.3875 10.2007 3.9642 10.4717 3.7242 1.6224 0.5618 1.2792 0.4194

? 1.2544

? 1.0638

? 3.3829

? 4.5639

? 6.2365

? 6.7475

? 1.0606

? 0.8598

1.3404 1.3404 1.3656 1.3656 7.4902 7.4902 7.9514 7.9514 10.2007 10.2007 10.4717 10.4717 1.6224 1.6224 1.2792 1.2792

0.0000 0.0000 0.0000 0.0000 0.1025 0.1025 0.1030 0.1030 2.8755 2.8755 2.9338 2.9338 0.2248 0.2248 N/A N/A

* X Accumulation class launched 24 May 2018. Equalisation applies only to units purchased during the distribution period (Group 2 units). It is the average amount of revenue included in the purchase price of all Group 2

units and is refunded to holders of these units as a return of capital. Being capital, it is not liable to income tax but must be deducted from the cost of units for capital gains tax purposes.

13 BlackRock Gold and General Fund

Report on Remuneration

The below disclosures are made in respect of the remuneration policies of the BlackRock group ("BlackRock"), as they apply to BlackRock Fund Managers Limited (the "Manager"). The disclosures are made in accordance with the Directive 2009/65/EC on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities ("UCITS"), as amended, including in particular by Directive 2014/91/EU of the European Parliament and of the council of 23 July 2014, (the "Directive"), the "Guidelines on sound remuneration policies under the UCITS Directive and AIFMD" issued by the European Securities and Markets Authority, the Financial Conduct Authority Handbook SYSC 19E: The UCITS Remuneration Code (the "UCITS Remuneration Code"), and COLL 4.5.7 R(7).

BlackRock's UCITS Remuneration Policy (the "UCITS Remuneration Policy") will apply to the EEA entities within the BlackRock group authorised as a manager of alternative investment funds in accordance with the Directive, and will ensure compliance with the requirements of Article 14b of the Directive and the UCITS Remuneration Code.

The Manager has adopted the UCITS Remuneration Policy, a summary of which is set out below.

Remuneration Governance BlackRock's remuneration governance in EMEA operates as a tiered structure which includes: (a) the Management Development and Compensation Committee ("MDCC") (which is the global, independent remuneration committee for BlackRock, Inc. and all of its subsidiaries, including the Manager); and (b) the Manager's board of directors (the "Manager's Board"). These bodies are responsible for the determination of BlackRock's remuneration policies.

(a) MDCC The MDCC's purposes include:

? providing oversight of: ? BlackRock's executive compensation programmes;

? BlackRock's employee benefit plans; and

? such other compensation plans as may be established by BlackRock from time to time for which the MDCC is deemed as administrator;

? reviewing and discussing the compensation discussion and analysis included in the BlackRock, Inc. annual proxy statement with management and approving the MDCC's report for inclusion in the proxy statement;

? reviewing, assessing and making reports and recommendations to the BlackRock, Inc. board of directors (the "BlackRock, Inc. Board") as appropriate on BlackRock's talent development and succession planning, with the emphasis on performance and succession at the highest management levels; and

? in accordance with applicable UK and European regulations and guidance, to act as the Remuneration Committee for BlackRock's EMEA regulated entities.

The MDCC directly retains its own independent compensation consultant, Semler Brossy Consulting Group LLC, who has no relationship with BlackRock, Inc. or the BlackRock, Inc. Board that would interfere with its ability to provide independent advice to the MDCC on compensation matters.

BlackRock Gold and General Fund 14

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