BlackRock Global Funds Annual Report 2019

Annual Report and Audited Financial Statements BlackRock Global Funds (BGF)

R.C.S. Luxembourg: B.6317

31 August 2019

Contents

Board of Directors

2

Management and Administration

2

General Information

3

Chairman's Letter to Shareholders

6

Investment Adviser's Report

8

Directors' Report

15

Report on Remuneration

19

Statement of Net Assets

23

Three Year Summary of Net Asset Values

30

Statement of Operations and Changes in Net Assets 64

Statement of Changes in Shares Outstanding

78

Portfolio of Investments

ASEAN Leaders Fund

108

Asia Pacific Equity Income Fund

110

Asian Dragon Fund

112

Asian Growth Leaders Fund

114

Asian High Yield Bond Fund

116

Asian Multi-Asset Growth Fund

118

Asian Tiger Bond Fund

125

China A-Share Opportunities Fund

133

China Bond Fund

136

China Flexible Equity Fund

141

China Fund

143

Continental European Flexible Fund

145

Dynamic High Income Fund

147

Emerging Europe Fund

170

Emerging Markets Bond Fund

172

Emerging Markets Corporate Bond Fund

180

Emerging Markets Equity Income Fund

184

Emerging Markets Fund

187

Emerging Markets Local Currency Bond Fund

190

ESG Emerging Markets Blended Bond Fund

196

ESG Emerging Markets Bond Fund

201

ESG Emerging Markets Corporate Bond Fund

208

ESG Emerging Markets Local Currency Bond Fund

211

ESG Multi-Asset Fund(1)

215

Euro Bond Fund

230

Euro Corporate Bond Fund

247

Euro Reserve Fund

258

Euro Short Duration Bond Fund

260

Euro-Markets Fund

273

European Equity Income Fund

275

European Focus Fund

277

European Fund

279

European High Yield Bond Fund

281

European Special Situations Fund

287

European Value Fund

289

FinTech Fund(2)

291

Fixed Income Global Opportunities Fund

293

Future Of Transport Fund(2)

378

Global Allocation Fund

380

Global Bond Income Fund

394

Global Conservative Income Fund(2)

401

Global Corporate Bond Fund

419

Global Dynamic Equity Fund

431

Global Enhanced Equity Yield Fund

436

Global Equity Income Fund

440

Global Government Bond Fund

442

Global High Yield Bond Fund

460

Global Inflation Linked Bond Fund

480

Global Long-Horizon Equity Fund(1)

488

Global Multi-Asset Income Fund

490

Global SmallCap Fund

548

India Fund

558

Japan Flexible Equity Fund

560

Japan Small & MidCap Opportunities Fund

562

Latin American Fund

564

Market Navigator Fund(2)

566

Natural Resources Growth & Income Fund

573

Next Generation Technology Fund(2)

575

North American Equity Income Fund

577

Nutrition Fund(1)

579

Pacific Equity Fund

581

Sustainable Energy Fund(1)

583

Swiss Small & MidCap Opportunities Fund(3)

585

United Kingdom Fund

587

US Basic Value Fund

589

US Dollar Bond Fund

591

US Dollar High Yield Bond Fund

634

US Dollar Reserve Fund

651

US Dollar Short Duration Bond Fund

653

US Flexible Equity Fund

666

US Government Mortgage Fund

668

US Growth Fund

677

US Small & MidCap Opportunities Fund

679

World Bond Fund

681

World Energy Fund

712

World Financials Fund

714

World Gold Fund

716

World Healthscience Fund

718

World Mining Fund

720

World Real Estate Securities Fund

722

World Technology Fund

725

Notes to the Financial Statements

728

Audit Report

742

Appendix I ? Share Classes (Unaudited)

744

Appendix II ? Global Exposure and Leverage (Unaudited)750

Appendix III ? Eligibility for French "Plan d'Epargne

en Actions" ("PEA") (Unaudited)

754

Appendix IV ? Supplementary Information (Unaudited) 755

(1) Fund name changed during the year, see Note 1, for further details. (2) Fund launched during the year, see Note 1, for further details. (3) Fund closed to subscriptions, see Note 1, for further details.

Subscriptions may be made only on the basis of the current Prospectus and relevant KIID for the Funds, together with the most recent annual report and audited financial statements and interim report and unaudited financial statements. Copies are available from the Investor Services Centre, the Transfer Agent, the Management Company or any of the Distributors.

Annual Report and Audited Financial Statements[1]

Board of Directors(1)(2)(3)

Management and Administration continued

Paul Freeman, (Chairman) Geoffrey Radcliffe Francine Keiser Barry O'Dwyer Robert Hayes Michael Gruener Martha Boeckenfeld (resigned effective 31 October 2019)

(1) All Directors of BlackRock Global Funds are non-executive Directors. (2) Geoffrey Radcliffe, Barry O'Dwyer, Robert Hayes and Michael Gruener are employees

of the BlackRock Group (of which the Management Company, Investment Advisers and Principal Distributor are part), and Paul Freeman is a former employee of the BlackRock Group. (3) Francine Keiser and Martha Boeckenfeld are independent Directors.

Management and Administration

Management Company BlackRock (Luxembourg) S.A. 35A, avenue J.F. Kennedy, L-1855 Luxembourg, Grand Duchy of Luxembourg

Investment Advisers BlackRock Financial Management, Inc. Park Avenue Plaza, 55 East 52nd Street, New York, NY 10055, USA

BlackRock Investment Management, LLC 100 Bellevue Parkway, Wilmington, Delaware 19809, USA

BlackRock Investment Management (UK) Limited 12 Throgmorton Avenue, London EC2N 2DL, UK

BlackRock (Singapore) Limited # 18-01 Twenty Anson, 20 Anson Road, Singapore, 079912

Sub-Investment Advisers BlackRock Asset Management North Asia Limited 16/F Champion Tower, 3 Garden Road, Central, Hong Kong

BlackRock Japan Co. Limited 1-8-3 Marunouchi, Chiyoda-ku, Tokyo 100-8217, Japan

BlackRock Investment Management (Australia) Limited Level 26, 101 Collins Street, Melbourne 3000, Australia

Principal Distributor BlackRock Investment Management (UK) Limited 12 Throgmorton Avenue London EC2N 2DL UK

Depositary The Bank of New York Mellon SA / NV, Luxembourg Branch* 2-4, rue Eug?ne Ruppert L-2453 Luxembourg Grand Duchy of Luxembourg

* Refer to Note 1, Significant Events.

[2] BlackRock Global Funds (BGF)

Administrator The Bank of New York Mellon SA / NV, Luxembourg Branch* 2-4, rue Eug?ne Ruppert L-2453 Luxembourg Grand Duchy of Luxembourg

Transfer Agent and Registrar J.P. Morgan Bank Luxembourg S.A. European Bank & Business Center 6, route de Tr?ves, Building C L-2633 Senningerberg Grand Duchy of Luxembourg

Auditor Ernst & Young S.A.* 35E avenue John F. Kennedy, L-1855 Luxembourg, Grand Duchy of Luxembourg

Legal Advisers Linklaters LLP 35 avenue John F. Kennedy, L-1855 Luxembourg Grand Duchy of Luxembourg

Listing Agent J.P. Morgan Bank Luxembourg S.A. European Bank & Business Center 6, route de Tr?ves, Building C L-2633 Senningerberg Grand Duchy of Luxembourg

Securities Lending Agent BlackRock Advisors (UK) Limited 12 Throgmorton Avenue London EC2N 2DL UK

Paying Agents A list of Paying Agents is to be found on pages 3 and 4.

Registered Office 2-4, rue Eug?ne Ruppert L-2453 Luxembourg Grand Duchy of Luxembourg

Enquiries In the absence of other arrangements, enquiries regarding the Company should be addressed as follows: Written enquiries: BlackRock Investment Management (UK) Limited c/o BlackRock (Luxembourg) S.A. P.O. Box 1058 L-1010 Luxembourg Grand Duchy of Luxembourg

All other enquiries: Telephone: + 44 207 743 3300 Fax: + 44 207 743 1143 Website: Email: investor.services@

General Information

Current Prospectus BlackRock Global Funds (the "Company") Prospectus and addendum, and the relevant KIID for the Funds along with copies of the Account Opening and Dealing Form may be obtained from the Local Investor Services Centre, the Management Company or any of the Representatives or Distributors. Copies of the Company's Articles of Association and the Annual Report and Audited Financial Statements and Interim Report and Unaudited Financial Statements may also be obtained free of charge from any of these offices and from the Paying Agents. All these documents are also available from .

Representatives The representative in Hong Kong is BlackRock Asset Management North Asia Limited, 16/F, Champion Tower, 3 Garden Road Central Hong Kong.

The representative in Switzerland is BlackRock Asset Management Schweiz AG, Bahnhofstrasse 39, 8001 Zurich, Switzerland.

The representative in Poland is Dubiski Jeleski Masiarz and Partners Sp.K ul. Zielna 37, 00-108 Warszawa, Poland.

The representative in Israel is Altshuler Shaham Mutual Funds Management Ltd.

The facilities agent in Ireland is BlackRock Investment Management (Dublin) Limited and BlackRock Investment Management (UK) Limited acts as UK facilities agent.

Authorised Status The Company is an Undertaking for Collective Investment in Transferable Securities ("UCITS") under the Luxembourg law of 17 December 2010 as amended. Regulatory consents have been obtained or appropriate notifications have been made for the distribution of shares of the Company's Funds in the umbrella in the following countries:

Austria, Czech Republic, Denmark, Finland, France, Germany, Gibraltar, Hungary, Iceland, Ireland, Liechtenstein, Luxembourg, Netherlands, Norway, Poland, Slovakia, Spain, Sweden and the United Kingdom.

Regulatory consents have been obtained or appropriate notifications have been made for the distribution of shares of certain Funds in the umbrella in the following countries:

Belgium, Brunei, Chile, China, Greece, Hong Kong, Israel, Italy, Japan, Korea, Macau, Portugal, Singapore, Switzerland, Taiwan and UAE.

Shares of certain Funds in the umbrella may also be offered in certain other jurisdictions from time to time on a private placement basis.

The Company is duly registered with the Comisi?n Nacional de Mercado de Valores in Spain under number 140.

Paying Agents Austria Raiffeisen Bank International AG Am Stadtpark 9 1030 Vienna

Belgium J.P. Morgan Chase Bank N.A. Brussels Branch 1 Boulevard du Roi Albert II Brussels B1210

Czech Republic

Luxembourg

UniCredit Bank Czech Republic (Central Paying Agent)

and Slovakia, A.S.

J.P. Morgan Bank

Prague 4 - Michle,

Luxembourg S.A. European

Zeletavsk? 1525/1,

Bank & Business Center,

140 92

6, route de Tr?ves, Building C

L-2633 Senningerberg

France

CACEIS Bank

Switzerland

1/3, Place Valhubert 75013, State Street Bank International

Paris

GmbH,

Munich, Zurich branch

Beethovenstrasse 19,

CH-8027 Zurich

Italy Allfunds Bank S.A. Succursale di Milano Via Santa Margherita 7 20121 Milan

Banca Monte dei Paschi di Siena S.p.A. Piazza Salimbeni 3 53100 Siena

Banca Sella Holding S.p.A. Piazza Gaudenzio Sella 1 13900 Biella

Annual Report and Audited Financial Statements[3]

General Information continued

Paying Agents continued Italy continued BNP Paribas Securities Services Succursale di Milano Via Ansperto 5 20123 Milan

Italy continued State Street Bank GmbH ? Succursale Italia Registered Office Via Ferrante Aporti, 10 20125 Milan

RBC Investor Services

CACEIS Bank S.A.

Bank S.A.

Registered Office

Succursale di Milano

Piazza Cavour,

Via Vittor Pisani, 26

20121 Milan

I-20121 Milan

ICCREA Banca S.p.A.

Soci?t? G?n?rale Securities Via Lucrezia Romana 41-47

Services S.p.A.

00178 Rome

Via Benigno Crespi, 19/A, MAC II

20159 Milan

Poland Bank Handlowy w Warszawie Sp?lka Akcyjna ul. Senatorska 16 00-923 Warszawa

United Kingdom J.P. Morgan Trustee and Depositary Company Limited Hampshire Building, 1st Floor Chaseside Bournemouth BH7 7DA

Germany J.P. Morgan AG CIB/Investor Services - Trustee & Fiduciary Taunustor 1 (Taunus Turm) 60310 Frankfurt am Main

Liechtenstein VP Bank AG 9490 Vaduz, (FL-0001.007.080-0) represented by VP Fund Solutions (Liechtenstein) AG 9490 Vaduz, (FL-0002.000.772-7)

Mauritius Subsidiary

Directors Peter Nagle (appointed effective 26 September 2018) Couldip Basanta Lala (resigned effective 26 September 2018) Geoffrey Radcliffe Dilshaad Rajabalee Robert Hayes Paul Freeman

Mauritian Auditor to the Subsidiary EY Mauritius Level 9, Tower 1, NexTeracom, Cybercity, Eb?ne Republic of Mauritius

Investment Manager BlackRock Investment Management (UK) Limited 12 Throgmorton Avenue London EC2N 2DL United Kingdom

Mauritian Administrator Sanne Group plc IFS Court, Bank Street TwentyEight, Cybercity Eb?ne 72201 Republic of Mauritius

Publication of Prices and Notices to Shareholders Notices are sent to registered shareholders and (when legally required) published in such newspapers as decided by the Directors and in the Recueil des Soci?t?s et Associations du M?morial Luxembourg. The previous Dealing Day's prices for shares may be obtained during business hours from the local Investor Servicing team and are also available from the BlackRock website. They will also be published in such countries as required under applicable law and at the discretion of the Directors in a number of newspapers or electronic platforms worldwide. The Company cannot accept any responsibility for error or delay in the publication or non-publication of prices. Historic dealing prices for all shares are available from the Administrator or local Investor Servicing team.

[4] BlackRock Global Funds (BGF)

General Information continued

Purchases and Sales A detailed list of investments purchased and sold for any Fund during the year is available upon request, free of charge, from the Registered office as mentioned on page 2, or the offices of the Representatives as mentioned on page 3. Disclosure Policy Details of month end holdings and valuations for all BlackRock Global Funds will be made available upon request from the Investor Services Centre to any BlackRock Global Funds shareholder no earlier than 10 business days after a given month end. BlackRock Global Funds reserves the right to require shareholders to sign an appropriate non-disclosure document prior to providing such information. For German investors This annual report and audited financial statements (the "Report and Financial Statements") may be translated into other languages. Any such translation shall only contain the same information and have the same meaning as the English language Report and Financial Statements. To the extent that there is any inconsistency between the English language Report and Financial Statements and the Report and Financial Statements in another language, the English language Report and Financial Statements will prevail, except to the extent (and only to the extent) that it is required by law of any jurisdiction where the shares are sold, that in an action based upon disclosure in a Report and Financial Statements in a language other than English, the language of the Report and Financial Statements on which such action is based shall prevail. Any disputes as to the terms of the Report and Financial Statements, regardless of the language of the Report and Financial Statements, shall be governed by and construed in accordance with the laws of Luxembourg. The prospectus, the KIID and a full statement of portfolio changes are available free of charge, from the German Paying Agent. Please note that a notification regarding the distribution of shares in the Federal Republic of Germany pursuant to section 310 of the German Capital Investment Code (Kapitalanlagegesetzbuch) has not been filed in respect of the following Sub-Fund: Asian Multi-Asset Growth Fund. Therefore, shares of this Sub-Fund may not be distributed in the Federal Republic of Germany.

Annual Report and Audited Financial Statements[5]

Chairman's Letter to Shareholders

1 September 2018 to 31 August 2019

Dear Shareholder,

I am writing to update you on the activities of BlackRock Global Funds ("BGF") over the twelve months to the end of August 2019. The BGF range comprised 81 funds (each a "Fund", together the "Funds") as at 31 August 2019.

The individual Funds' performance is covered in more detail in the separate Investment Adviser's report. It has been an unsettled year in financial markets. The global economy has perceptibly started to slow, while the tensions between the US and China have started to look less like a squabble over trade and more like a more fundamental realignment of political and economic power. At the same time, central bank policy has notably changed direction. This has left investors uncertain and created significant volatility.

In its July update, the International Monetary Fund ("IMF") lowered its global growth forecast to 3.2% in 2019, picking up to 3.5% in 2020. This is 0.1% lower than in the April World Economic Outlook projections for both years. The agency said: "Gross domestic product ("GDP") releases so far this year, together with generally softening inflation, point to weaker-than-anticipated global activity. Investment and demand for consumer durables have been subdued across advanced and emerging market economies as firms and households continue to hold back on long-range spending."

The backdrop of US/China trade tensions ? with protectionist measures on both sides and the threat of higher tariffs ? has played a significant role in weakening global growth. The manufacturing sector has been hit particularly hard. Export-led economies such as Germany have felt considerable pain. Europe's largest economy is likely to slip into recession this year as a result.

Talks between the two nations are ongoing and US president Donald Trump will be aware that re-election is looming in 2020. However, the problem is starting to look like a battle for global economic supremacy, rather than simply a spat over tariffs. With that in mind, it is difficult to see a short-term resolution and uncertainty is likely to continue.

US economic strength started to wane as the impact of tax reform diminished. It grew at a rate of 2% in the second quarter, a significant slow-down from the first quarter and a little behind estimates. The weakness was largely attributable to falling business investment, while consumer spending remained robust.

European leaders were forced to contend with populism on the one hand and Brexit on the other. At the same time, the Eurozone economy remained lacklustre, with inflation sluggish. French president Emmanuel Macron was forced to face down the `Gilets Jaunes', as protestors took to the streets. Italy's populist coalition collapsed. Germany too was struggling with the rise of the far right.

Japan's economy continued to grow, rising 1.3% in the April-June quarter. This was driven by public investment, but consumer and business spending held up. The Bank of Japan remains committed to loose monetary policy and retains some optimism that the economy will continue to expand.

Another potential crisis loomed in emerging markets as Argentina's economy ran into difficulties. However, there was limited contagion. China's economic growth hit a near-30 year low, but, at 6.2%, was still faster than any developed market.

Economic weakness brought a volte-face from central bankers. The Federal Reserve ("Fed") cut rates in July for the first time in a decade. The European Central Bank ("ECB") was sufficiently worried to revive the quantitative easing policy that it had only just brought to an end. A number of emerging markets also cut rates in response to the Fed's move.

Stock markets were highly volatile over the twelve month period. Although they recovered from the weakness seen at the end of 2018, they continued to prove vulnerable to macroeconomic factors, such as the trade war.

Within fixed income markets, there was a reversion to `safety' and yield on developed market government bonds began to fall. In October, yields on the 10-year US treasury bond had edged over 3%, but they were back down to around 1.5% by the end of August. In the meantime, corporate credit has been relatively weak as investors started to fear debt levels in US corporates and a slowdown in growth.

Regulatory change continued throughout Europe and a number of these future changes could have implications for investors. Key changes included:

}On 21 July 2018, new rules came into effect to make money market funds ("MMFs") more resilient against financial market difficulties, reduce the risk posed by significant and rapid redemptions and limit cross-border contagion. They applied to newly issued MMFs in the EU immediately, and existing MMFs were required to show compliance by 21 January 2019. The Money Market Funds Regulation ("MMFR") introduced stricter liquidity requirements for MMFs to meet any sudden withdrawals,

The information stated in this report is historical and not necessarily indicative of future performance.

[6] BlackRock Global Funds (BGF)

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