ANNUAL REPORT AND AUDITED FINANCIAL STATEMENTS · 2017. 10. 2. · As of 1 February 2016, the Paying Agent in Switzerland changed from JPMorgan Chase Bank, National Association, Columbus,

ANNUAL REPORT AND AUDITED FINANCIAL STATEMENTS iSHARES V PLC

FOR THE FINANCIAL YEAR ENDED 30 NOVEMBER 2016

iSHARES V PLC

i S H A R E S V P L C A N N U A L R E P O R T [ 1 ]

Contents General information 3

Background 5

Investment Manager’s report 11

Chairman’s Statement 25

Board of Directors 26

Corporate Governance Statement 28

Audit Committee Report 34

Statement of Directors’ Responsibilities 37

Directors’ Report 39

Statement of the Depositary's Responsibilities 41

Depositary’s report to the shareholders 42

Independent Auditors’ report 43

Financial Statements

Financial statements of the Company

Basis of Preparation 49

Accounting policies 51

Financial instruments and risks 55

Income statement 86

Statement of changes in net assets attributable to redeemable participating shareholders 86

Balance sheet 87

Notes to the financial statements 88

Fund primary statements and notes, schedules of investments and unaudited schedules of material purchases and sales:

iShares $ EM Corp Bond UCITS ETF 94

iShares € Corp Bond Interest Rate Hedged UCITS ETF 112

iShares Agribusiness UCITS ETF 143

iShares Austria Govt Bond UCITS ETF 151

iShares Belgium Govt Bond UCITS ETF 157

iShares EM Dividend UCITS ETF 164

iShares Finland Govt Bond UCITS ETF 173

iShares France Govt Bond UCITS ETF 179

iShares Germany Govt Bond UCITS ETF 186

iShares Gold Producers UCITS ETF 193

iShares Italy Govt Bond UCITS ETF 200

iShares MSCI ACWI UCITS ETF 208

iShares MSCI EM Consumer Growth UCITS ETF 233

iShares MSCI Japan EUR Hedged UCITS ETF (Acc) 246

iShares MSCI Japan GBP Hedged UCITS ETF (Acc) 256

iShares MSCI Poland UCITS ETF 267

iShares MSCI World EUR Hedged UCITS ETF (Acc) 273

iShares MSCI World GBP Hedged UCITS ETF (Acc) 306

iShares Netherlands Govt Bond UCITS ETF 336

iShares Oil & Gas Exploration & Production UCITS ETF 342

iShares S&P 500 Consumer Discretionary Sector UCITS ETF 349

iShares S&P 500 Energy Sector UCITS ETF 356

iShares S&P 500 EUR Hedged UCITS ETF (Acc) 362

iShares S&P 500 Financials Sector UCITS ETF 375

iSHARES V PLC

[ 2 ] i S H A R E S V P L C A N N U A L R E P O R T

Contents (continued) Financial Statements (continued)

Fund primary statements and notes, schedules of investments and unaudited schedules of material purchases and sales (continued):

iShares S&P 500 GBP Hedged UCITS ETF (Acc) 382

iShares S&P 500 Health Care Sector UCITS ETF 395

iShares S&P 500 Information Technology Sector UCITS ETF 402

iShares Spain Govt Bond UCITS ETF 409

Glossary 415

Other Information (unaudited)

Report on Remuneration (unaudited) 416

Supplementary Information (unaudited) 420

Disclaimers (unaudited) 439

This annual report and audited financial statements (the “Report and Accounts”) 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 Accounts. To the extent that there is any inconsistency between the English language Report and Accounts and the Report and Accounts in another language, the English language Report and Accounts 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 Accounts in a language other than English, the language of the Report and Accounts on which such action is based shall prevail. Any disputes as to the terms of the Report and Accounts, regardless of the language of the Report and Accounts, shall be governed by and construed in accordance with the laws of Ireland.

iSHARES V PLC


General information

Board of Directors1 Company Secretary

Paul McNaughton (Chairman) (Irish) Sanne

Paul McGowan (Irish) Fourth Floor

Barry O’Dwyer (Irish) 76 Lower Baggot Street

Karen Prooth (British) Dublin 2

Teresa O’Flynn (Irish) Ireland

Audit Committee Members Investment Manager, Promoter and Securities Lending Agent

Paul McGowan (Chairman) BlackRock Advisors (UK) Limited

Paul McNaughton 12 Throgmorton Avenue

London EC2N 2DL

Nomination Committee Members England

Paul McNaughton (Chairman)

Paul McGowan Sub-Investment Manager4

Barry O'Dwyer BlackRock Financial Management Inc.

40 East 52nd Street

Manager New York

BlackRock Asset Management Ireland Limited NY 10022

J.P. Morgan House United States

International Financial Services Centre

Dublin 1 BlackRock (Singapore) Limited

Ireland 20 Anson Road

#18-01

Administrator Singapore 079912

State Street Fund Services (Ireland) Limited Singapore

78 Sir John Rogerson’s Quay

Dublin 2 Depositary

Ireland State Street Custodial Services (Ireland) Limited

78 Sir John Rogerson’s Quay

Registrar2 Dublin 2

Computershare Investor Services (Ireland) Limited Ireland

Heron House

Corrig Road Registered office of the Company

Sandyford Industrial Estate J.P. Morgan House

Dublin 18 International Financial Services Centre

Ireland Dublin 1

Ireland

Registrar3 State Street Fund Services (Ireland) Limited Legal Advisors to the Company

78 Sir John Rogerson’s Quay William Fry

Dublin 2 2 Grand Canal Square

Ireland Dublin 2

Ireland

1 All Directors are non-executive Directors. 2 Registrar for all funds except iShares S&P 500 Consumer Discretionary Sector UCITS ETF, iShares S&P 500 Energy Sector UCITS ETF, iShares S&P 500 Financials Sector UCITS ETF, iShares S&P 500 Health Care Sector UCITS ETF and iShares S&P 500 Information Technology Sector UCITS ETF up to 4 July 2016. 3 Registrar for iShares S&P 500 Consumer Discretionary Sector UCITS ETF, iShares S&P 500 Energy Sector UCITS ETF, iShares S&P 500 Financials Sector UCITS ETF, iShares S&P 500 Health Care Sector UCITS ETF and iShares S&P 500 Information Technology Sector UCITS ETF from launch date and all Funds from July 4 2016. 4 The Investment Manager has appointed BlackRock Financial Management Inc. and BlackRock (Singapore) Limited as sub-investment managers to perform certain portfolio management functions in respect of iShares $ EM Corp Bond UCITS ETF, iShares Austria Govt Bond UCITS ETF, iShares Belgium Govt Bond UCITS ETF, iShares € Corp Bond Interest Rate Hedged UCITS ETF, iShares Finland Govt Bond UCITS ETF, iShares France Govt Bond UCITS ETF, iShares Germany Govt Bond UCITS ETF, iShares Italy Govt Bond UCITS ETF, iShares Netherlands Govt Bond UCITS ETF and iShares Spain Govt Bond UCITS ETF.

iSHARES V PLC


General information (continued)

Independent Auditors Paying Agent in Switzerland

PricewaterhouseCoopers State Street Bank International GmbH

Chartered Accountants and Registered Auditors Munich

One Spencer Dock Zurich Branch

North Wall Quay Beethovenstrasse 19

Dublin 1 CH-8027 Zurich

Ireland Switzerland

Paying Agent1 German Paying and Information Agent

Citibank N.A., London Branch Commerzbank AG

Citigroup Centre Theodor-Heuss-Allee 50

25 Canada Square 60486 Frankfurt am Main

Canary Wharf Germany

London E14 5LB

England Austrian Paying and Information Agent

UniCredit Bank Austria AG

Representative in Switzerland Attn: 8398/Custody

BlackRock Asset Management Schweiz AG Julius Tandler Platz 3

Bahnhofstrasse 39 1090 Vienna

8001 Zurich Austria

Switzerland

The Company is duly registered with the Comisión Nacional de Mercado de Valores in Spain under number 977.

1 The entity appointed to act as paying agent to iShares S&P 500 Consumer Discretionary Sector UCITS ETF, iShares S&P 500 Energy Sector UCITS ETF, iShares S&P 500 Financials Sector UCITS ETF, iShares S&P 500 Health Care Sector UCITS ETF and iShares S&P 500 Information Technology Sector UCITS ETF from launch date and all Funds from 4 July 2016.

iSHARES V PLC

Background


iShares V public limited company (the "Company") is organised as an open-ended investment company with variable capital. The Company was

incorporated in Ireland on 2 December 2009 with limited liability and segregated liability between its Funds and is organised under the laws of

Ireland as a Public Limited Company (“plc”) pursuant to the Companies Act 2014 and the European Communities (Undertakings for Collective

Investment in Transferable Securities) Regulations, 2011 (as amended) (the "UCITS Regulations") and is regulated by the Central Bank of

Ireland ("the CBI").

The Company is structured as an umbrella Fund and comprises separate Funds (“Funds”) of the Company.

The term “Fund” shall be deemed to mean either a Fund of the Company, or if the context so requires, the Manager or its delegate acting for the

account of the relevant Fund. The term “BlackRock” is used to represent BlackRock Advisors (UK) Limited. The investment objectives and

policies of each Fund are set out in the prospectus and the relevant supplemental prospectus.

Changes to the Company

Cora O'Donohoe resigned as a Director effective 31 December 2015. Teresa O'Flynn was appointed as a Director effective 6 January 2016.

A new prospectus was issued on 4 January 2016 which includes changes to the anticipated tracking error of the following funds:

Fund Anticipated

Tracking Error %

Revised Anticipated

Tracking Error

iShares € Corp Bond Interest Rate Hedged UCITS ETF Up to 0.40 Up to 0.35

iShares Austria Govt Bond UCITS ETF Up to 0.15 Up to 0.10

iShares Belgium Govt Bond UCITS ETF Up to 0.15 Up to 0.10

iShares Finland Govt Bond UCITS ETF Up to 0.15 Up to 0.10

iShares France Govt Bond UCITS ETF Up to 0.15 Up to 0.10

iShares Germany Govt Bond UCITS ETF Up to 0.15 Up to 0.10

iShares Gold Producers UCITS ETF Up to 0.50 Up to 0.20

iShares Italy Govt Bond UCITS ETF Up to 0.30 Up to 0.20

iShares MSCI Japan EUR Hedged UCITS ETF (Acc) Up to 0.15 Up to 0.20

iShares MSCI Japan GBP Hedged UCITS ETF (Acc) Up to 0.15 Up to 0.20

iShares MSCI Poland UCITS ETF Up to 0.90 Up to 0.30

iShares MSCI World EUR Hedged UCITS ETF (Acc) Up to 0.35 Up to 0.20

iShares MSCI World GBP Hedged UCITS ETF (Acc) Up to 0.35 Up to 0.20

iShares Netherlands Govt Bond UCITS ETF Up to 0.15 Up to 0.10

iShares Oil & Gas Exploration & Production UCITS ETF Up to 0.05 Up to 0.10

iShares S&P 500 EUR Hedged UCITS ETF (Acc) Up to 0.15 Up to 0.10

iShares S&P 500 GBP Hedged UCITS ETF (Acc) Up to 0.15 Up to 0.10

iShares Spain Govt Bond UCITS ETF Up to 0.30 Up to 0.20

The following sentence has been removed from the prospectus issued on 4 January 2016: "Any deferred redemption requests shall be treated in

priority to any redemption requests received on subsequent Dealing Days."

As of 1 February 2016, the Paying Agent in Switzerland changed from JPMorgan Chase Bank, National Association, Columbus, Zurich Branch to

State Street Bank GmbH, Munich, Zurich Branch. With effect from 28 April 2016, State Street Bank GmbH changed name to State Street Bank

International GmbH.

An Extraordinary General Meeting (“EGM”) was held on 16 March 2016 to vote on the conversion to the International Central Securities

Depositary ("ICSD") model, where the settlement of trading in shares of all Funds within the Company will be centralised in an ICSD structure.

The ICSD model was approved at the EGM.

iSHARES V PLC

Background (continued)


Changes to the Company (continued)

As communicated to shareholders in the shareholder letter dated 8 February 2016, effective 4 July 2016, the settlement of trading in shares of

all Funds within the Company will be centralised in an ICSD structure. State Street Fund Services (Ireland) Limited has been appointed as the

registrar for the Funds within the Company that converted to the ICSD model on 4 July 2016.

An update to Directive 2009/65/EC on the co-ordination of laws, regulations and administrative provisions relating to undertakings for collective

investment in transferable securities (the “UCITS Directive”), Directive 2014/91/EU (“UCITS V”) became effective on 18 March 2016 and was

transposed into Irish law effective 21 March 2016. A depositary agreement dated 13 October 2016, with an effective date of 18 March 2016, has

consequently been entered into between the Company, the Manager and the Depositary, amending and restating the custody agreement

between the parties dated 11 June 2010.

In response to the CBI publishing the Central Bank (Supervision and Enforcement) Act, 2013 (Section 48(1)) Investor Money Regulations 2015 for

Fund Service Providers (the “Investor Money Regulations” or “IMR”) in March 2015 (effective from 1 July 2016), the Manager undertook, together

with State Street Custodial Services (Ireland) Limited, a review of the way in which subscription, distribution and redemption monies are

channelled to and from the Company.

As a result of this review, subscription and redemption monies are (effective from 23 May 2016), channelled through an umbrella cash collection

account in the name of the Company, and in respect of any Funds considered to be highly leveraged, Fund cash collection accounts in the name

of the relevant Fund(s). Pending issue of the Shares and /or payment of subscription proceeds to an account in the name of the Company or the

relevant Fund(s), and pending payment of redemption proceeds or distributions, the relevant investor is an unsecured creditor of the relevant

Fund in respect of amounts paid by or due to it. For the avoidance of doubt, none of the Funds of the Company are considered highly leveraged.

On 14 September 2016, the Brazilian Tax Authorities issued Normative Instruction 1658/16 amending the list of countries considered to be ‘low

tax jurisdictions’ to include Curacao, Saint Martin and Ireland and exclude the Netherlands Antilles and Saint Kitts and Nevis. The changes are

effective from 1 October 2016 onwards. As a consequence, Brazilian Capital Gains Tax (“CGT”) and increased income withholding tax (“WHT”)

rates on interest on capital distributions apply to the Brazilian securities held in the following Funds, iShares EM Dividend UCITS ETF, iShares

MSCI ACWI UCITS ETF and iShares MSCI EM Consumer Growth UCITS ETF.

On 2 November 2016, the Board of Directors of the Company notified shareholders of their intention to launch multiple share classes within

most of the existing sub-funds of the Company and also other sub-funds across the Irish iShares range and an amendment to the definition of

‘Duties and Charges’.

The following name changes to the Funds and changes to benchmark index names as detailed below and overleaf were effective from 16

November 2016.

Existing Fund Name New Fund Name

iShares $ Emerging Markets Corporate Bond UCITS ETF iShares $ EM Corp Bond UCITS ETF

iShares Austria Government Bond UCITS ETF iShares Austria Govt Bond UCITS ETF

iShares Belgium Government Bond UCITS ETF iShares Belgium Govt Bond UCITS ETF

iShares Emerging Markets Dividend UCITS ETF iShares EM Dividend UCITS ETF

iShares Euro Corporate Bond Interest Rate Hedged UCITS ETF iShares € Corp Bond Interest Rate Hedged UCITS ETF

iShares Finland Government Bond UCITS ETF iShares Finland Govt Bond UCITS ETF

iShares France Government Bond UCITS ETF iShares France Govt Bond UCITS ETF

iShares Germany Government Bond UCITS ETF iShares Germany Govt Bond UCITS ETF

iShares Italy Government Bond UCITS ETF iShares Italy Govt Bond UCITS ETF

iShares MSCI Emerging Markets Consumer Growth UCITS ETF iShares MSCI EM Consumer Growth UCITS ETF

iShares MSCI Japan EUR Hedged UCITS ETF iShares MSCI Japan EUR Hedged UCITS ETF (Acc)

iShares MSCI Japan GBP Hedged UCITS ETF iShares MSCI Japan GBP Hedged UCITS ETF (Acc)

iShares MSCI World EUR Hedged UCITS ETF iShares MSCI World EUR Hedged UCITS ETF (Acc)

iShares MSCI World GBP Hedged UCITS ETF iShares MSCI World GBP Hedged UCITS ETF (Acc)

iShares Netherlands Government Bond UCITS ETF iShares Netherlands Govt Bond UCITS ETF

iSHARES V PLC



Changes to the Company (continued)

Existing Fund Name New Fund Name

iShares S&P 500 EUR Hedged UCITS ETF iShares S&P 500 EUR Hedged UCITS ETF (Acc)

iShares S&P 500 GBP Hedged UCITS ETF iShares S&P 500 GBP Hedged UCITS ETF (Acc)

iShares Spain Government Bond UCITS ETF iShares Spain Govt Bond UCITS ETF

Fund Benchmark Name Updated Benchmark Name

iShares € Corp Bond Interest Rate Hedged

UCITS ETF

Barclays EUR Corporate Interest Rate Hedged

Index

Bloomberg Barclays EUR Corporate Interest

Rate Hedged Index

iShares Austria Govt Bond UCITS ETF Barclays Austria Treasury Bond Index Bloomberg Barclays Austria Treasury Bond

Index

iShares Belgium Govt Bond UCITS ETF Barclays Belgium Treasury Bond Index Bloomberg Barclays Belgium Treasury Bond

Index

iShares Finland Govt Bond UCITS ETF Barclays Finland Treasury Bond Index Bloomberg Barclays Finland Treasury Bond

Index

iShares France Govt Bond UCITS ETF Barclays France Treasury Bond Index Bloomberg Barclays France Treasury Bond

Index

iShares Germany Govt Bond UCITS ETF Barclays Germany Treasury Bond Index Bloomberg Barclays Germany Treasury Bond

Index

iShares Italy Govt Bond UCITS ETF Barclays Italy Treasury Bond Index Bloomberg Barclays Italy Treasury Bond Index

iShares Netherlands Govt Bond UCITS ETF Barclays Netherlands Treasury Bond Index Bloomberg Barclays Netherlands Treasury

Bond Index

iShares S&P 500 EUR Hedged UCITS ETF (Acc) S&P 500 Euro Hedged Index S&P 500 EUR Hedged

iShares S&P 500 GBP Hedged UCITS ETF (Acc) S&P 500 British Pound Index S&P 500 GBP

iShares Spain Govt Bond UCITS ETF Barclays Spain Treasury Bond Index Bloomberg Barclays Spain Treasury Bond

Index

On 16 November 2016, a revised prospectus was issued to reflect the changes listed above.

As of 18 November 2016, the Company Secretary changed its name from Chartered Corporate Services to Sanne.

Securities Financing Transactions Regulation (Regulation (EU) 2015/2365) (“SFTR”) came into force on 12 January 2016 and, amongst other

requirements, introduces new disclosure requirements in the Funds' annual and half-yearly reports published after 13 January 2017 detailing

the Funds’ use of securities financing transactions and total return swaps ("TRS"). As a result, additional disclosures have been included in the

Supplementary Information section to the Annual Report.

Potential Implication of Brexit

In a referendum held on 23 June 2016, the electorate of the United Kingdom (“UK”) resolved to leave the European Union (“EU”). The result has

led to political and economic instability and volatility in the financial markets of the UK and more broadly across Europe. It may also lead to

weakening in consumer, corporate and financial confidence in such markets as the UK negotiates its exit from the EU.

The longer term process to implement the political, economic and legal framework between the UK and the EU is likely to lead to continuing

uncertainty. Much of the industry’s surplus with the EU is dependent on unfettered access to the single market. This is known as “passporting”,

the right of a company registered in the European Economic Area (“EEA”) to do business in another EEA state. The changes, if any, to the

passporting rights of the Funds post Brexit have yet to be determined.

The result of this referendum does not change how the Funds' portfolios are managed however the mid to long term uncertainty may have an

adverse effect on the economy generally and on the ability of the Funds to execute their strategies and to receive attractive returns, and may

also result in increased costs to the Funds.

iSHARES V PLC



Fund details

There were 28 Funds in operation at 30 November 2016. The investment objective of the Funds is to provide investors with a total return, taking

into account the capital and income returns, which reflect the total returns of the respective benchmark listed in the table below and overleaf:

Fund Benchmark Index

Investment Management Approach*

iShares $ EM Corp Bond UCITS ETF Morningstar Emerging Markets Corporate Bond Index Non-replicating

iShares € Corp Bond Interest Rate Hedged UCITS ETF** Bloomberg Barclays EUR Corporate Interest Rate Hedged Index Non-replicating

iShares Agribusiness UCITS ETF S&P Commodity Producers Agribusiness Index Replicating

iShares Austria Govt Bond UCITS ETF** Bloomberg Barclays Austria Treasury Bond Index Non-replicating

iShares Belgium Govt Bond UCITS ETF** Bloomberg Barclays Belgium Treasury Bond Index Non-replicating

iShares EM Dividend UCITS ETF Dow Jones Emerging Markets Select Dividend Index Non-replicating

iShares Finland Govt Bond UCITS ETF** Bloomberg Barclays Finland Treasury Bond Index Non-replicating

iShares France Govt Bond UCITS ETF** Bloomberg Barclays France Treasury Bond Index Non-replicating

iShares Germany Govt Bond UCITS ETF** Bloomberg Barclays Germany Treasury Bond Index Non-replicating

iShares Gold Producers UCITS ETF S&P Commodity Producers Gold Index Replicating

iShares Italy Govt Bond UCITS ETF** Bloomberg Barclays Italy Treasury Bond Index Non-replicating

iShares MSCI ACWI UCITS ETF MSCI All Countries World Index Net USD Non-replicating

iShares MSCI EM Consumer Growth UCITS ETF MSCI ACWI Emerging Markets Consumer Growth Index Non-replicating

iShares MSCI Japan EUR Hedged UCITS ETF (Acc) MSCI Japan 100% Hedged to EUR Index Net Non-replicating

iShares MSCI Japan GBP Hedged UCITS ETF (Acc) MSCI Japan 100% Hedged to GBP Net TR Index Non-replicating

iShares MSCI Poland UCITS ETF MSCI Poland Index Replicating

iShares MSCI World EUR Hedged UCITS ETF (Acc) MSCI World 100% Hedged to EUR Index Net Non-replicating

iShares MSCI World GBP Hedged UCITS ETF (Acc) MSCI World 100% Hedged to GBP Index Net Non-replicating

iShares Netherlands Govt Bond UCITS ETF** Bloomberg Barclays Netherlands Treasury Bond Index Non-replicating

iShares Oil & Gas Exploration & Production

UCITS ETF

S&P Commodity Producers Oil & Gas Exploration

& Production Index

Replicating

iShares S&P 500 Consumer Discretionary Sector

UCITS ETF

S&P 500 Consumer Discretionary Index Replicating

iShares S&P 500 Energy Sector UCITS ETF S&P 500 Energy Index Replicating

iShares S&P 500 EUR Hedged UCITS ETF (Acc)** S&P 500 EUR Hedged Non-replicating

iShares S&P 500 Financials Sector UCITS ETF S&P 500 Financial Services Index Replicating

iShares S&P 500 GBP Hedged UCITS ETF (Acc)** S&P 500 GBP Non-replicating

iShares S&P 500 Health Care Sector UCITS ETF S&P 500 Health Care Index Replicating

iShares S&P 500 Information Technology Sector

UCITS ETF

S&P 500 Information Technology Index Replicating

iShares Spain Govt Bond UCITS ETF** Bloomberg Barclays Spain Treasury Bond Index Non-replicating

* Please refer to the Investment Manager’s report for further information on replicating and non-replicating Funds. ** Benchmark index name changed during the financial year.

All figures relating to each Fund are shown in the relevant functional currency. The financial statements of the Company are presented in British

Pounds. These Funds are Exchange Traded Funds (“ETFs”), which provide the flexibility of a share with the diversification of a Fund. They can be

bought and sold like any other share listed on a stock exchange, but provide instant exposure to many companies or various financial

instruments relevant to the Fund and its benchmark index.

iSHARES V PLC



PEA Eligibility (Plan d’Epargne en Actions)

A PEA is a French equity savings plan intended to encourage French tax resident individuals to invest in European equities. PEA eligible Funds

must invest on a permanent basis at least 75% of their assets in PEA eligible securities issued by companies (i) established in a Member State

of the European Union or in Iceland, Liechtenstein or Norway and (ii) subject to corporate income tax, or an equivalent tax.

The Directors have notified shareholders of the withdrawal of the PEA eligible status of iShares MSCI Poland UCITS ETF during the second

quarter of 2016.

Stock exchange listings

The Company maintained a primary listing on the London Stock Exchange (“LSE”).

As at 30 November 2016, the Funds are listed and traded on the following exchanges:

Fund Base

Currency*

London Stock

Exchange Borsa

Italiana Deutsche Börse**

NYSE Euronext

Amsterdam SIX Swiss Exchange

iShares $ EM Corp Bond UCITS ETF $ � � � - �

iShares € Corp Bond Interest Rate Hedged UCITS ETF € � � � � �

iShares Agribusiness UCITS ETF $ � - � - �

iShares Austria Govt Bond UCITS ETF € � - � - -

iShares Belgium Govt Bond UCITS ETF € � - � � -

iShares EM Dividend UCITS ETF $ � - � - �

iShares Finland Govt Bond UCITS ETF € � - � - -

iShares France Govt Bond UCITS ETF € � - � � �

iShares Germany Govt Bond UCITS ETF € � - � - -

iShares Gold Producers UCITS ETF $ � - � - �

iShares Italy Govt Bond UCITS ETF € � � � - �

iShares MSCI ACWI UCITS ETF $ � - � - �

iShares MSCI EM Consumer Growth UCITS ETF $ � - � - �

iShares MSCI Japan EUR Hedged UCITS ETF (Acc) € � � � � �

iShares MSCI Japan GBP Hedged UCITS ETF (Acc) £ � - - - -

iShares MSCI Poland UCITS ETF $ � - � - �

iShares MSCI World EUR Hedged UCITS ETF (Acc) € � � � � �

iShares MSCI World GBP Hedged UCITS ETF (Acc) £ � - - - -

iShares Netherlands Govt Bond UCITS ETF € � - � � -

iShares Oil & Gas Exploration & Production UCITS ETF $ � - � - �

iShares S&P 500 Consumer Discretionary Sector UCITS ETF $ � - � - �

iShares S&P 500 Energy Sector UCITS ETF $ � - � - �

iShares S&P 500 EUR Hedged UCITS ETF (Acc) € � � � � �

iShares S&P 500 Financials Sector UCITS ETF $ � - � - �

iShares S&P 500 GBP Hedged UCITS ETF (Acc) £ � - - - -

iShares S&P 500 Health Care Sector UCITS ETF $ � - � - �

iShares S&P 500 Information Technology Sector UCITS ETF $ � - � - �

iShares Spain Govt Bond UCITS ETF € � - � - �

* All $, £ and € base currency Funds are denominated in United States Dollar, British Pound and Euro respectively. ** Funds traded on the Deutsche Börse Xetra XTF Funds Platform of the Frankfurt Stock Exchange.

iSHARES V PLC


[ 1 0 ] i S H A R E S V P L C A N N U A L R E P O R T

Transactions with Connected parties

In accordance with the requirements of the CBI, the Manager shall ensure that any transactions carried out between the Funds and the

Manager or Depositary to the Funds, the delegates or sub-delegates of the Manager or Depositary (excluding any non-group company sub-

custodians appointed by a Depositary) and any associated or group company of the Manager, Depositary, delegate or sub-delegate (“Connected

Parties”) must be conducted at arm’s length and in the best interests of the shareholders.

The board of directors of the Manager are satisfied that there are arrangements in place, as evidenced by written procedures, to ensure that the

obligations set out above are applied to all transactions with Connected Parties and that transactions with Connected Parties entered into

during the period complied with this obligation.

Total expense ratio

The total expense ratio ("TER") shown below expresses the sum of all fees, operating costs and expenses, with the exception of direct trading

costs, charged to each Fund’s assets as a percentage of the average Fund assets based on a twelve month period ended 30 November 2016.

Fund TER (%)

iShares $ EM Corp Bond UCITS ETF 0.50

iShares € Corp Bond Interest Rate Hedged UCITS ETF 0.25

iShares Agribusiness UCITS ETF 0.55

iShares Austria Govt Bond UCITS ETF 0.20

iShares Belgium Govt Bond UCITS ETF 0.20

iShares EM Dividend UCITS ETF 0.65

iShares Finland Govt Bond UCITS ETF 0.20

iShares France Govt Bond UCITS ETF 0.20

iShares Germany Govt Bond UCITS ETF 0.20

iShares Gold Producers UCITS ETF 0.55

iShares Italy Govt Bond UCITS ETF 0.20

iShares MSCI ACWI UCITS ETF 0.60

iShares MSCI EM Consumer Growth UCITS ETF 0.60

iShares MSCI Japan EUR Hedged UCITS ETF (Acc) 0.64

iShares MSCI Japan GBP Hedged UCITS ETF (Acc) 0.64

iShares MSCI Poland UCITS ETF 0.74

iShares MSCI World EUR Hedged UCITS ETF (Acc) 0.55

iShares MSCI World GBP Hedged UCITS ETF (Acc) 0.55

iShares Netherlands Govt Bond UCITS ETF 0.20

iShares Oil & Gas Exploration & Production UCITS ETF 0.55

iShares S&P 500 Consumer Discretionary Sector UCITS ETF 0.15

iShares S&P 500 Energy Sector UCITS ETF 0.15

iShares S&P 500 EUR Hedged UCITS ETF (Acc) 0.45

iShares S&P 500 Financials Sector UCITS ETF 0.15

iShares S&P 500 GBP Hedged UCITS ETF (Acc) 0.45

iShares S&P 500 Health Care Sector UCITS ETF 0.15

iShares S&P 500 Information Technology Sector UCITS ETF 0.15

iShares Spain Govt Bond UCITS ETF 0.20

iSHARES V PLC

Investment Manager’s report

i S H A R E S V P L C A N N U A L R E P O R T [ 1 1 ]

INVESTMENT OBJECTIVE

The investment objective of the Funds is to provide investors with a total return, taking into account the capital and income returns, which

reflect the total returns of the respective benchmark listed in the Background section.

FUND PERFORMANCE*

The performance of the Funds for the financial year under review is shown below:

Fund return for the financial

year ended 30/11/2016

Benchmark return for the financial


Fund return for the financial


Benchmark return for the financial


Fund % % % %

iShares $ EM Corp Bond UCITS ETF 7.63 8.06 (1.17) (0.81)

iShares € Corp Bond Interest Rate Hedged UCITS ETF 0.64 0.82 (1.74) (1.53)

iShares Agribusiness UCITS ETF 5.95 6.17 (10.27) (10.07)

iShares Austria Govt Bond UCITS ETF 2.32 2.53 2.02 2.24

iShares Belgium Govt Bond UCITS ETF 3.20 3.39 2.32 2.53

iShares EM Dividend UCITS ETF 15.99 16.82 (26.86) (26.70)

iShares Finland Govt Bond UCITS ETF 2.16 2.36 1.75 1.96

iShares France Govt Bond UCITS ETF 1.99 2.20 2.43 2.65

iShares Germany Govt Bond UCITS ETF 2.43 2.61 2.41 2.61

iShares Gold Producers UCITS ETF 51.40 52.20 (21.92) (21.75)

iShares Italy Govt Bond UCITS ETF (1.49) (1.29) 6.44 6.64

iShares MSCI ACWI UCITS ETF 3.71 3.68 (3.21) (2.49)

iShares MSCI EM Consumer Growth UCITS ETF 1.32 1.61 (8.05) (7.43)

iShares MSCI Japan EUR Hedged UCITS ETF (Acc) (8.19) (7.57) 10.95 11.66

iShares MSCI Japan GBP Hedged UCITS ETF (Acc) (9.01) (8.36) 10.59 11.33

iShares MSCI Poland UCITS ETF (8.63) (8.48) (31.38) (31.26)

iShares MSCI World EUR Hedged UCITS ETF (Acc) 2.49 2.73 2.81 3.17

iShares MSCI World GBP Hedged UCITS ETF (Acc) 2.89 3.03 2.96 3.30

iShares Netherlands Govt Bond UCITS ETF 2.79 2.99 2.18 2.38

iShares Oil & Gas Exploration & Production UCITS ETF 16.09 16.54 (25.39) (25.17)

iShares S&P 500 Consumer Discretionary Sector UCITS ETF 2.56 2.51 0.66 0.65

iShares S&P 500 Energy Sector UCITS ETF 11.95 11.62 0.71 0.70

iShares S&P 500 EUR Hedged UCITS ETF (Acc) 5.87 5.93 1.56 1.65

iShares S&P 500 Financials Sector UCITS ETF 15.06 14.89 (0.45) (0.45)

iShares S&P 500 GBP Hedged UCITS ETF (Acc) 6.18 6.32 1.56 1.78

iShares S&P 500 Health Care Sector UCITS ETF (2.06) (2.20) 0.20 0.19

iShares S&P 500 Information Technology Sector UCITS ETF 9.08 8.99 0.19 0.18

iShares Spain Govt Bond UCITS ETF 1.59 1.78 4.35 4.55

* Fund performance is shown net of fees and expenses (TER).

The Fund return figures are the aggregated net monthly returns and are based on the average published pricing net asset value (“NAV”) for the

financial year under review. Due to accounting policy requirements under Irish accounting standards which apply to the financial statements,

there may be slight differences between the NAV per share as recorded in the financial statements and the published NAV per share. The

returns are net of management fees.

Past performance may not necessarily be repeated and future performance may vary.

iSHARES V PLC

Investment Manager’s report (continued)


TRACKING DIFFERENCE

Tracking difference is defined as the difference in returns between a Fund and its benchmark index.

For physically replicating Funds, the investment management approach is to buy a portfolio of securities that as far as practicable consist of

the securities that make up the benchmark index, in similar proportion to the weights represented in the benchmark index.

For non-replicating Funds, the investment management approach aims to match the main risk characteristics of the benchmark index by

investing in a portfolio that is primarily made up of securities that represent the benchmark index. The objective is to generate a return which is

as close as practicable to the total return of the index net of transaction costs and gross of fees and other costs.

Cash management and efficient portfolio management techniques including securities lending, transaction costs from rebalancing and

currency hedging can have an impact on tracking difference. Importantly, these impacts can be either positive or negative depending on the

underlying circumstances.

In addition to the above, the Funds may also have a tracking difference due to withholding tax suffered by the Funds on any income received

from its investments. The level and quantum of tracking difference arising due to withholding taxes depends on various factors such as any

reclaims filed on behalf of the Funds with various tax authorities, any benefits obtained by the Funds under a tax treaty or any securities lending

activities carried out by the Funds.

The table below compares the realised Fund performance against the performance of the relevant benchmark index during the financial year

ended 30 November 2016. An explanation for the difference gross of TER is provided:

Fund return for the

financial year ended 30/11/2016

Benchmark return for

the financial year ended 30/11/2016

Tracking difference

net of TER TER

Tracking difference

gross of TER Explanation of the tracking difference

Fund % % % % %

iShares $ EM Corp Bond UCITS ETF 7.63 8.06 (0.43) 0.50 0.07 The outperformance of the Fund was due

to securities lending revenue and

sampling techniques employed.

iShares € Corp Bond Interest Rate

Hedged UCITS ETF

0.64 0.82 (0.18) 0.25 0.07 The outperformance of the Fund was due

to sampling techniques employed.

iShares Agribusiness UCITS ETF 5.95 6.17 (0.22) 0.55 0.33 The outperformance of the Fund was due

to differences in tax rates applied to

dividends received in the Fund versus the

tax rate assumed in the total return

calculation of the benchmark.

iShares Austria Govt Bond

UCITS ETF

2.32 2.53 (0.21) 0.20 (0.01) The Fund performed in line with the

index before costs (TER).

iShares Belgium Govt Bond

UCITS ETF

3.20 3.39 (0.19) 0.20 0.01 The Fund performed in line with the


iShares EM Dividend UCITS ETF 15.99 16.82 (0.83) 0.65 (0.18) The underperformance of the Fund (post

TER) is mainly attributable to costs

associated with the rebalancing of the

Fund.

iShares Finland Govt Bond UCITS ETF 2.16 2.36 (0.20) 0.20 0.00 The Fund performed in line with the


iShares France Govt Bond

UCITS ETF

1.99 2.20 (0.21) 0.20 (0.01) The Fund performed in line with the


iShares Germany Govt Bond

UCITS ETF



iSHARES V PLC



TRACKING DIFFERENCE (continued)

Fund return for the




Tracking difference

net of TER TER

Tracking difference


Fund % % % % %

iShares Gold Producers UCITS ETF 51.40 52.20 (0.80) 0.55 (0.25) The underperformance of the Fund was

predominantly due to the impact of fees

to the Fund, including compounding in a

rising equity market, versus no fees

assumed in the total return calculation

of the benchmark.

iShares Italy Govt Bond UCITS ETF (1.49) (1.29) (0.20) 0.20 0.00 The Fund performed in line with the


iShares MSCI ACWI UCITS ETF 3.71 3.68 0.03 0.60 0.63 The outperformance of the Fund was due


iShares MSCI EM Consumer Growth

UCITS ETF



iShares MSCI Japan EUR Hedged

UCITS ETF (Acc)

(8.19) (7.57) (0.62) 0.64 0.02 The Fund performed in line with the


iShares MSCI Japan GBP Hedged

UCITS ETF (Acc)

(9.01) (8.36) (0.65) 0.64 (0.01) The Fund performed in line with the


iShares MSCI Poland UCITS ETF (8.63) (8.48) (0.15) 0.74 0.59 The outperformance of the Fund was due

to both the differences in tax rates

applied to dividends and the timing of

receipt of dividends, received in the Fund

versus the calculation of the benchmark.

iShares MSCI World EUR Hedged

UCITS ETF (Acc)


to sampling techniques employed in

addition to differences in the tax rates

applied to dividends received in the Fund

versus the tax rate assumed in the total

return calculation of the benchmark.

iShares MSCI World GBP Hedged

UCITS ETF (Acc)


to sampling techniques employed in

addition to differences in the tax rates

applied to dividends received in the Fund

versus the tax rate assumed in the total

return calculation of the benchmark.

iShares Netherlands Govt Bond

UCITS ETF



iShares Oil & Gas Exploration &

Production UCITS ETF






iSHARES V PLC



TRACKING DIFFERENCE (continued)

Fund return for the




Tracking difference

net of TER TER

Tracking difference


Fund % % % % %

iShares S&P 500 Consumer

Discretionary Sector UCITS ETF

2.56 2.51 0.05 0.15 0.20 The outperformance of the Fund was due





iShares S&P 500 Energy Sector

UCITS ETF






iShares S&P 500 EUR Hedged

UCITS ETF (Acc)





calculation of the benchmark and to

effects from currency hedging.

iShares S&P 500 Financials Sector

UCITS ETF






iShares S&P 500 GBP Hedged

UCITS ETF (Acc)





calculation of the benchmark and to

effects from currency hedging.

iShares S&P 500 Health Care Sector

UCITS ETF

(2.06) (2.20) 0.14 0.15 0.29 The outperformance of the Fund was due





iShares S&P 500 Information

Technology Sector UCITS ETF






iShares Spain Govt Bond UCITS ETF 1.59 1.78 (0.19) 0.20 0.01 The Fund performed in line with the


iSHARES V PLC



TRACKING ERROR

Realised tracking error is the annualised standard deviation of the difference in monthly returns between a Fund and its benchmark index.

Tracking error shows the consistency of the returns relative to the benchmark index over a defined period of time.

Anticipated tracking error is based on the expected volatility of differences between the returns of a Fund and the returns of its benchmark

index.

Cash management, efficient portfolio management techniques including securities lending, transaction costs from rebalancing and currency

hedging can have an impact on tracking error as well as the return differential between a Fund and its benchmark index. Importantly, these

impacts can be either positive or negative depending on the underlying circumstances.

In addition to the above, the Funds may also have a tracking error due to withholding tax suffered by the Funds on any income received from its

investments. The level and quantum of tracking error arising due to withholding taxes depends on various factors such as any reclaims filed on

behalf of the Funds with various tax authorities, any benefits obtained by the Funds under a tax treaty or any securities lending activities

carried out by the Funds.

The table below compares the anticipated tracking error of the Funds (disclosed in the prospectus on an ex ante basis) against the actual

realised tracking error of the Funds as at 30 November 2016. An explanation of the difference is provided. The realised tracking error is

annualised and calculated using data from the preceding 36 month observation period. Where a Fund has not been trading for 36 months, the

annualised tracking error since inception has been presented.

Anticipated

tracking error Realised

tracking error Explanation for difference Fund % %

iShares $ EM Corp Bond UCITS ETF Up to 0.10 0.13 The Fund is managed using stratified sampling. This means the

Fund holds a subset of the index securities which aim to deliver

index risk and return characteristics. Typically the emerging

market corporate debt market has greater levels of idiosyncratic

risk, therefore small sampling mismatches can translate into a

relatively higher tracking error.


UCITS ETF

Up to 0.35 0.14 The Fund has tracked its benchmark index within its anticipated

tracking error.

iShares Agribusiness UCITS ETF Up to 0.15 0.07 The Fund has tracked its benchmark index within its anticipated

tracking error.

iShares Austria Govt Bond UCITS ETF Up to 0.10 0.05 The Fund has tracked its benchmark index within its anticipated

tracking error.

iShares Belgium Govt Bond UCITS ETF Up to 0.10 0.06 The Fund has tracked its benchmark index within its anticipated

tracking error.

iShares EM Dividend UCITS ETF Up to 0.70 0.43 The Fund has tracked its benchmark index within its anticipated

tracking error.

iShares Finland Govt Bond UCITS ETF Up to 0.10 0.04 The Fund has tracked its benchmark index within its anticipated

tracking error.

iShares France Govt Bond UCITS ETF Up to 0.10 0.05 The Fund has tracked its benchmark index within its anticipated

tracking error.

iShares Germany Govt Bond UCITS ETF Up to 0.10 0.04 The Fund has tracked its benchmark index within its anticipated

tracking error.

iShares Gold Producers UCITS ETF Up to 0.20 0.13 The Fund has tracked its benchmark index within its anticipated

tracking error.

iShares Italy Govt Bond UCITS ETF Up to 0.20 0.06 The Fund has tracked its benchmark index within its anticipated

tracking error.

iSHARES V PLC



TRACKING ERROR (continued)

Anticipated

Tracking Error Realised

Tracking Error Explanation for difference Fund % %

iShares MSCI ACWI UCITS ETF Up to 0.40 0.25 The Fund has tracked its benchmark index within its anticipated

tracking error.


UCITS ETF*


tracking error.

iShares MSCI Japan EUR Hedged UCITS

ETF (Acc)


tracking error.

iShares MSCI Japan GBP Hedged UCITS

ETF (Acc)


tracking error.

iShares MSCI Poland UCITS ETF Up to 0.30 0.59 The tracking error was due to both the differences in tax rates

applied to dividends and the timing of receipt of dividends,

received in the Fund versus the calculation of the benchmark.

iShares MSCI World EUR Hedged UCITS

ETF (Acc)


tracking error.

iShares MSCI World GBP Hedged UCITS

ETF (Acc)


tracking error.

iShares Netherlands Govt Bond UCITS ETF Up to 0.10 0.04 The Fund has tracked its benchmark index within its anticipated

tracking error.


UCITS ETF


tracking error.

iShares S&P 500 Consumer Discretionary

Sector UCITS ETF*


tracking error.

iShares S&P 500 Energy Sector UCITS ETF* Up to 0.10 0.12 The realised tracking error is normally computed from 36 months

of returns. The Fund's return history is too short to give a

statistically significant tracking error.

iShares S&P 500 EUR Hedged UCITS

ETF (Acc)


tracking error.

iShares S&P 500 Financials Sector

UCITS ETF*


tracking error.

iShares S&P 500 GBP Hedged UCITS ETF

(Acc)


tracking error.


UCITS ETF*


tracking error.

iShares S&P 500 Information Technology

Sector UCITS ETF*


tracking error.

iShares Spain Govt Bond UCITS ETF Up to 0.20 0.06 The Fund has tracked its benchmark index within its anticipated

tracking error.

* The realised tracking error is normally computed from 36 months of returns. The Fund's return history is too short to give a statistically significant tracking error.

iSHARES V PLC



CALENDAR YEAR PERFORMANCE

The performance of the Funds, on a calendar year basis, is shown below:

2016 2015 2014 2013 01/01/2016 01/01/2015 01/01/2014 01/01/2013 to 30/11/2016 to 31/12/2015 to 31/12/2014 to 31/12/2013 Launch Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark Fund Date % % % % % % % %

iShares $ EM Corp Bond UCITS ETF Apr-12 9.64 10.10 (0.25) 0.08 3.11 3.47 (3.13) (2.81)


UCITS ETF Oct-12 0.74 0.90 (1.68) (1.46) 1.29 1.50 3.05 3.28

iShares Agribusiness UCITS ETF Sep-11 7.83 8.04 (10.90) (10.71) 1.78 2.11 6.62 6.96

iShares Austria Govt Bond UCITS ETF May-12 3.44 3.65 (0.35) (0.15) 12.39 12.62 (1.25) (1.08)

iShares Belgium Govt Bond UCITS ETF May-12 4.53 4.73 0.10 0.30 13.94 14.17 (0.65) (0.48)

iShares EM Dividend UCITS ETF Nov-11 18.61 19.39 (24.45) (24.17) (9.25) (9.03) (10.40) (10.01)

iShares Finland Govt Bond UCITS ETF May-12 3.16 3.36 (0.06) 0.14 10.00 10.22 (2.10) (1.92)

iShares France Govt Bond UCITS ETF May-12 3.21 3.42 0.28 0.49 11.83 12.06 (0.69) (0.52)

iShares Germany Govt Bond UCITS ETF May-12 3.49 3.68 0.14 0.33 10.09 10.30 (2.43) (2.26)

iShares Gold Producers UCITS ETF Sep-11 50.20 50.94 (21.75) (21.57) (12.90) (12.42) (52.28) (52.12)

iShares Italy Govt Bond UCITS ETF May-12 (0.78) (0.57) 4.62 4.83 14.87 15.09 7.00 7.19

iShares MSCI ACWI UCITS ETF Oct-11 5.73 5.58 (3.05) (2.36) 3.91 4.16 22.37 22.80


UCITS ETF** Jun-14 3.49 3.76 (5.12) (4.49) (3.99) (3.35) N/A N/A

iShares MSCI Japan EUR Hedged UCITS

ETF (Acc) Sep-10 (6.19) (5.61) 9.03 9.73 7.95 8.75 50.78 51.98

iShares MSCI Japan GBP Hedged UCITS

ETF (Acc) Aug-12 (6.99) (6.38) 8.64 9.36 8.29 9.14 51.63 52.88

iShares MSCI Poland UCITS ETF Jan-11 (7.47) (7.38) (25.50) (25.35) (14.23) (14.21) 2.76 2.59

iShares MSCI USA UCITS ETF* Apr-10 N/A N/A N/A N/A 9.49 9.53 31.75 31.79

iShares MSCI World EUR Hedged UCITS

ETF (Acc) Sep-10 4.79 5.01 1.42 1.74 9.21 9.48 27.55 28.07

iShares MSCI World GBP Hedged UCITS

ETF (Acc) Sep-10 5.22 5.35 1.47 1.78 9.70 9.99 28.54 29.09

iShares Netherlands Govt Bond UCITS ETF May-12 3.70 3.89 0.12 0.32 11.19 11.41 (2.29) (2.12)


UCITS ETF Sep-11 37.03 37.55 (34.82) (34.66) (21.50) (21.23) 14.19 14.67

iShares S&P 500 Consumer Discretionary

Sector UCITS ETF** Nov-15 5.53 5.50 (3.37) (3.40) N/A N/A N/A N/A

iShares S&P 500 Energy Sector UCITS ETF** Nov-15 24.24 23.90 (8.30) (8.33) N/A N/A N/A N/A

iShares S&P 500 EUR Hedged UCITS ETF (Acc) Sep-10 7.70 7.74 0.18 0.28 12.56 12.73 30.81 30.96

iShares S&P 500 Financials Sector UCITS ETF** Nov-15 17.61 17.47 (2.74) (2.77) N/A N/A N/A N/A

iShares S&P 500 GBP Hedged UCITS ETF (Acc) Sep-10 8.04 8.15 0.11 0.34 13.08 13.25 31.79 31.95


UCITS ETF** Nov-15 (3.74) (3.86) 1.13 1.12 N/A N/A N/A N/A

iShares S&P 500 Information Technology Sector

UCITS ETF** Nov-15 11.65 11.56 (2.96) (2.96) N/A N/A N/A N/A

iShares Spain Govt Bond UCITS ETF May-12 2.80 3.00 1.45 1.65 16.48 16.72 10.82 11.04

* As this Fund closed in the period, returns are shown from the 1 January 2014 to 18 August 2014. ** Where a Fund's launch date is within a performance period, figures are shown from the launch to the financial year end.

iSHARES V PLC



CALENDAR YEAR PERFORMANCE (continued)

The Fund return figures are the aggregated net monthly returns and are based on the average published pricing NAV for the financial period

under review. Due to accounting policy requirements under Irish accounting standards which apply to the financial statements, there may be

slight differences between the NAV per share as recorded in the financial statements, and the published pricing NAV per share. The returns are

net of management fees.

Past performance may not necessarily be repeated and future performance may vary.

iSHARES V PLC



MARKET REVIEW

Equities

Global equities

This market review summary covers iShares MSCI ACWI UCITS ETF, iShares MSCI World EUR Hedged UCITS ETF (Acc) and iShares MSCI World GBP Hedged UCITS ETF (Acc).

Global equities produced modest positive returns over the Company’s review year. Having suffered steep falls in late 2015 amid concerns over

the effects of China’s economic slowdown, slumping oil prices and higher US interest rates, global equities staged a broad recovery over the

remainder of the review year as confidence in the economic outlook improved.

World stock markets began the review year on a very weak note amid fears that the extent of China’s economic slowdown could be worse than

official figures suggested. Meanwhile, worries over the demand outlook weighed heavily on commodity prices, with oil prices falling sharply over

the second half of 2015. Although many investors had largely priced in the US Federal Reserve’s (“Fed”) December 2015 0.25% rise in interest

rates, emerging markets (“EM”) suffered on fears of a capital flight, reflecting unease that the Fed’s move, the first rise in US interest rates

since 2006, could mark the beginning of a series of increases. Nevertheless, sentiment began to recover late in the first quarter of 2016, buoyed

by more encouraging survey data from China and comments from Fed officials suggesting that policymakers would retain a patient approach

before raising interest rates further. Although news of expanded economic stimulus measures from the European Central Bank (“ECB”) and the

Bank of Japan (“BoJ”), including the imposition of negative interest rates by the latter, received a mixed reaction from investors, firmer oil

prices, driven by rising demand forecasts and hopes of production cuts, lent further support to global equities. However, market volatility rose

during the second quarter of 2016 as some analysts suggested that the brighter outlook for the US economy, particularly the jobs market, could

prompt action from the Fed sooner rather than later. Investors were also unnerved by uncertainty ahead of the United Kingdom's ("UK")

referendum on membership of the European Union (“EU”) as some opinion polls suggested that the ‘Leave’ campaign had narrowed the gap to

the ‘Remain’ side.

Having fallen sharply in the immediate aftermath of the UK’s surprise decision to leave the EU (“Brexit”), global equity markets bounced from

their lows, buoyed by optimism that policymakers would maintain, or even expand, their stimulus measures to offset the added political

uncertainty. The Bank of England (“BoE”) cut interest rates in August 2016 while the Fed resisted pressure to raise interest rates at its

September 2016 meeting, citing Brexit related uncertainties as anti EU parties in countries such as Italy, the Netherlands and France were

emboldened by the UK vote. Having peaked late in the third quarter of 2016, global markets eased in October 2016 as political uncertainty

spread to the US ahead of the Presidential election. Having briefly slipped on the surprise news of Donald Trump’s victory, global equities soon

recovered to end the Company’s review year with modest gains, cheered by optimism that the new administration would embark on a

programme of tax cuts and infrastructure investment.

Equities complying with the size, liquidity and free float criteria specified for inclusion in MSCI’s All Country World Index (ACWI) Net USD Index

performed largely in line with wider global equity indices over the review year. iShares MSCI World EUR Hedged UCITS ETF (Acc) and iShares

MSCI World GBP Hedged UCITS ETF (Acc) marginally underperformed relative to the conventional MSCI World 100% hedged to GBP index net,

largely reflecting the US currency’s gains over its European peers, particularly late in the review year.

US equities

This market review summary covers iShares S&P 500 Consumer Discretionary Sector UCITS ETF, iShares S&P 500 Energy Sector UCITS ETF,

iShares S&P 500 EUR Hedged UCITS ETF (Acc), iShares S&P 500 Financials Sector UCITS ETF, iShares S&P 500 GBP Hedged UCITS ETF (Acc),

iShares S&P 500 Health Care Sector UCITS ETF and iShares S&P 500 Information Technology Sector UCITS ETF.

US equities generated solid positive returns and outperformed their wider peers over the Company’s review year. The US economy recovered

strongly from the marked slowdown of late 2015 and early 2016, raising optimism over the outlook for corporate earnings, despite the strength

of the US Dollar and some political uncertainties, both in the US and Europe.

Although the Fed’s 0.25% interest rate rise in December 2015 was largely priced in by investors, US equities followed their global peers lower

early in the review year, weighed by unease over the global economic growth outlook.

iSHARES V PLC



MARKET REVIEW (continued)

Equities (continued)

US equities (continued)

With unease over China’s slowing economy weighing heavily on oil prices, the US market’s relatively large energy sector acted as a dampener on

valuations amid broad weakness in resource prices into January and early February 2016. However, US stocks were among the vanguards of the

recovery in global equities between late February and early May 2016, bolstered by a recovery in energy prices amid more encouraging

economic data, both from China and the US. Investors drew particular comfort from comments by Fed officials suggesting that policymakers

would retain a patient approach before raising interest rates further.

Having fallen largely in tandem with their international counterparts in the immediate aftermath of late June 2016’s Brexit vote, US equities led

global markets higher during the third quarter of 2016. With some political uncertainty afflicting European markets generally, US stocks

attracted some degree of safe haven buying. US equities further benefited from a combination of survey data suggesting that the US economy

was regaining momentum and further that the Fed would refrain from raising interest rates until Brexit related uncertainties abated. However,

with data subsequently showing that the US economy grew by an upwardly revised 3.20% on an annualised basis during the third quarter of

2016, compared to 0.80% and 1.40% during the first and second quarters of 2016 respectively, investors increasingly responded to signs that

the Fed was adopting a more hawkish stance, pricing in further tightening around the turn of the calendar year. Following a brief spell of

underperformance amid political uncertainty ahead of November 2016’s presidential elections, US stocks ended the review year on a strong

note, both on an outright basis and relative to other regions. Despite some investors’ perception of a lack of clarity over President elect Trump’s

policies, markets reacted favourably to the growing conviction that the new administration would embark on a programme of tax cuts and

significant infrastructure spending.

In sector terms, energy performed strongly, helped by the recovery in oil & gas prices from their January 2016 lows. Financials also delivered

robust returns; insurers benefited as rising stock markets bolstered their asset base and banks’ higher valuations reflected expectations that

the Trump led government’s policies could convince policymakers to implement a series of interest rate increases in 2017. The information

technology sector recovered from initial underperformance, ending the review year with solid gains, underpinned by encouraging news flow

from companies such as IBM and Microsoft. However, consumer discretionary stocks ended the review year with only modest gains,

underperforming amid the growing expectation that higher interest rates could impact on consumer spending in 2017. Meanwhile, health care

equities, having performed relatively well early in the review year as investors sought out earnings reliability amid uncertainty, subsequently

underperformed, ending the period with negative returns, amid concerns over the potential for greater political influence on drug pricing. In the

aftermath of the US election, the health care sector also suffered from portfolio rotation into more growth orientated sectors.

Japanese equities

This market review summary covers iShares MSCI iShares MSCI Japan EUR Hedged UCITS ETF (Acc) and iShares MSCI Japan GBP Hedged

UCITS ETF (Acc).

Japanese equities generated very disappointing returns over the review year, underperforming relative to their global counterparts. With the

BoJ's extraordinary levels of stimulus having only limited success in reviving economic activity, concerns over the impact of the yen’s strength

on exporters’ revenues acted as a headwind to Japanese valuations.

Japanese stocks began the review year on a very weak note, reflecting concerns that the cooling of the Chinese economy was acting as a drag

on business activity across the Far East and renewed worries over the deflationary effects of weak oil prices. Having significantly

underperformed their international counterparts around the turn of the calendar year, Japanese stocks rallied from their February 2016 lows as

more reassuring Chinese survey data underpinned global equity markets. Although news that the BoJ had introduced negative interest rates for

the first time in its history and was set to expand its economic support package with an Exchange traded Fund ("ETF") purchase programme

received a mixed response from investors, confirmation that the economy had contracted by 0.30% during the final quarter of 2015 vindicated

many investors’ ongoing concerns over the health of the Japanese economy. Given the muted outlook for consumer spending, in early June 2016

the Japanese government announced that the planned 2017 increase in the consumption tax would be postponed until 2019. Against this

uncertain backdrop, Japanese stocks generally lagged behind the rally in broad global equity markets for much of the second quarter of 2016.

iSHARES V PLC




Equities (continued)

Japanese equities (continued)

Nevertheless, more supportive signs from the domestic economy during the third quarter of 2016 helped Japanese equities to narrow their

performance deficit relative to their international peers. Following the release of revised data showing that the economy had grown by 0.70%

during the first quarter of 2016, figures released in September 2016 showed that the Japanese economy maintained modest growth of 0.50%

during the second quarter of 2016. However, unease that consumer spending was failing to benefit from the robust labour market persisted,

while concerns lingered over the effects of the strong Yen on export earnings. Although these currency related concerns eased slightly as the

surprise US election result boosted the US Dollar, Japanese stocks ended the review year on a relatively flat note, reflecting some concerns over

the sustainability of the country’s economic recovery. Official data released in early December 2016 would subsequently show that third quarter

growth eased to just 0.30%.

Given the Japanese Yen’s strength against the Euro and the British Pound, the currency hedged funds significantly underperformed relative to

the returns from Japanese equities in local terms.

Emerging markets

This market review summary covers iShares EM Dividend UCITS ETF, iShares MSCI EM Consumer Growth UCITS ETF and iShares MSCI

Poland UCITS ETF.

EMs equities generally produced strong returns over the Company’s review year, outperforming their developed market peers by a substantial

margin. Following a poor start to the review year as concerns abounded over China’s economic outlook, more encouraging signs over the outlook

for leading emerging economies, notably China and Brazil, as demand for commodities improved, fostered an improvement in sentiment

towards developing markets, helping most EM equities to end the review year with significant gains. However, Polish stocks were an exception

as domestic political factors weighed on sentiment.

EMs ended 2015 on a weak note, as China’s uncertain economic growth outlook weighed on commodity prices and the Fed’s December 2016

interest rate rise impacted on investors’ appetite for risk. The resource rich Latin American markets performed particularly poorly, with a

political crisis that would culminate in impeachment action against Brazilian President Rousseff adding to the economic uncertainty. However,

sentiment towards EMs began to recover from late February 2016 as more encouraging Chinese economic data underpinned oil and other

commodity markets, while investors drew comfort from signs that the Fed would remain patient before raising interest rates even as US

economic growth rebounded.

Nevertheless, following some market gyrations ahead of and in the immediate aftermath of the UK’s Brexit vote, EMs broadly extended their

gains during the third quarter of 2016, cheered by signs that the Chinese economy had avoided a ‘hard landing’. Data showed that the Chinese

economy grew by 6.70% on a year on year basis during the second quarter of 2016, matching its first quarter performance. Meanwhile, resource

prices continued to firm, with crude oil markets benefiting from growing optimism over production cuts. EM investors drew increasing

confidence from signs of greater political clarity in Brazil after Michel Temer was appointed as Brazilian President in late August 2016 following

his predecessor’s impeachment. However, having touched new highs for the Company’s review year as the Fed refrained from raising interest

rates in September 2016, EMs subsequently lost some ground in October and November 2016. Despite news that the Chinese economic growth

rate held at 6.70% during the third quarter of 2016, political uncertainty ahead of the US elections impaired investors’ appetite for regions

perceived as higher risk. Although developed markets generally rallied during the final weeks of the review year, EMs lagged slightly behind the

wider rally, reflecting unease over the risk that the incoming US administration could pursue more protectionist trade policies.

Income orientated EM equities outperformed wider EM over the review year, helped by the formers’ relatively high exposure to dividend paying

companies in the Brazilian and Thai markets and lower exposure to the underperforming Chinese market. EM consumer growth equities

delivered only muted positive returns, underperforming wider EM equities, reflecting their lack of exposure to the outperforming financial and

energy sector and greater representation within the underperforming consumer discretionary and consumer staples sectors. Polish equities

delivered negative returns over the review year, reflecting both the mixed economic outlook for the key Eurozone export market, a sharp

slowdown in the domestic economy and growing political uncertainty amid accusations that the new government is curbing democratic

freedoms while introducing controversial constitutional reform.

iSHARES V PLC




Fixed income

European government bonds

This market review summary covers iShares Austria Govt Bond UCITS ETF, iShares Belgium Govt Bond UCITS ETF, iShares Finland Govt Bond

UCITS ETF, iShares France Govt Bond UCITS ETF, iShares Germany Govt Bond UCITS ETF, iShares Italy Govt Bond UCITS ETF, iShares

Netherlands Govt Bond UCITS ETF and iShares Spain Govt Bond UCITS ETF.

European government bonds generally produced muted positive returns over the Company’s review year, marginally underperforming relative to

their global counterparts. Having generated solid returns as inflation slowed and economic growth remained weak early in the review year,

performance subsequently faltered as energy prices recovered, while peripheral European government bonds, particularly Italian debt, suffered

from political uncertainty.

Euro government bond markets rallied steadily into the first quarter of 2016, buoyed by a combination of ultra low Eurozone inflation and

disappointing economic growth. Following news that the single currency zone’s economy had grown by just 0.30% during the final quarter of

2015, inflation continued to fall, touching a low of (0.20%) in February 2016 following sustained weakness in oil prices since mid-2015.

Speculation that the ECB would expand its stimulus programme was vindicated in March 2016 as policymakers increased the monthly bond

repurchase total from €60 billion to €80 billion, cut the benchmark lending rate to 0.00% and unveiled a new package to support bank lending.

After a short lived dip on news that the economy grew by a stronger than expected 0.60% during the first quarter of 2016, bond markets rallied

strongly on safe haven buying amid uncertainty resulting from the Brexit vote. However, with political risks rising and renewed worries

abounding over the capitalisation levels in the banking sector, Italian bonds significantly underperformed relative to their peers. Subsequently,

European bond markets ended the review year on a slightly softer note following Donald Trump’s election victory, reflecting higher US bond

yields driven by expectations that the President elect’s policy proposals could be inflationary. Italian bonds suffered further amid expectations

that Prime Minister ("PM") Matteo Renzi was set to lose the December 2016 referendum over constitutional reform, creating fresh political

uncertainty and instability in the country’s banking sector.

In country terms, Belgian debt performed relatively well, buoyed by a broad moderation in inflation and annual GDP growth. Austrian, Finnish,

French, German and Dutch debt delivered similar positive returns, underpinned by news of modest 0.30% growth across the single currency

rose during the second and third quarters of 2016. However, Spanish and Italian debt, underperformed as political concerns mounted, with

fears over the growing prospect of a bailout for some financial institutions weighing on Italian government bonds.

Corporate bonds

This market review summary covers iShares $ EM Corp Bond UCITS ETF and iShares € Corp Bond Interest Rate Hedged UCITS ETF.

Corporate bonds produced positive returns, generally matching the returns from global government bonds over the review year as a whole.

Although credit markets underperformed government debt early in the review year, investors’ appetite for yield subsequently lent support to

corporate bond markets, with credit spreads narrowing slightly as global government bond yields rose during the latter part of the Company’s

review year.

Having generally matched the returns from their government peers in the aftermath of the Fed’s December 2015 interest rate increase, credit

markets underperformed during the first quarter of 2016. Investors’ more subdued appetite for credit risk largely reflected unease over China’s

economic growth outlook, fears over the effects of low oil prices and growing uncertainty over the impact of negative interest rates. However,

more reassuring signs from the Chinese economy and optimism that the Fed would remain patient on further policy tightening, despite the

improving US economy, lent support to credit markets during the second quarter of 2016. Although credit markets’ underperformance in the

wake of the Brexit vote proved short lived, corporate bond prices eased in line with their government peers late in the third quarter of 2016 amid

further signs of resilience from the Chinese economy and growing conviction that the Fed would raise interest rates around the turn of the

calendar year. Despite the US Dollar and government bond yields rising sharply, particularly in the US, in the wake of Donald Trump’s election

success as investors anticipated more inflationary policies, credit proved more resilient than sovereign bonds amid hopes that higher US

government spending could bolster corporate earnings and balance sheets.

US Dollar denominated EM credit produced robust gains over the Company’s review year, outperforming both local EM debt and global credit,

underpinned by the firm US currency and greater optimism over the earnings outlook for EM corporate borrowers. However, Euro credit markets

generated disappointing returns over the review year, weighed by the poor performance of financial debt amid concerns over the health of some

parts of Europe’s banking sector, with the health of several Italian financial borrowers coming under particular scrutiny late in the review year.

iSHARES V PLC




Commodities

Agriculture

This market review summary covers iShares Agribusiness UCITS ETF.

Investing in the largest publicly traded companies involved in agribusiness from around the world, the Fund produced moderate gains over the

Company’s review year, outperforming compared to wider global equities.

Global agribusiness equities lost ground early in the review year, reflecting the weak trend in global stock markets amid concerns over the

effects of the slowing Chinese economy. However, more encouraging news in February and March 2016 from the Chinese economy prompted a

recovery in commodity prices, while US based seed and agrochemicals giant Monsanto Company's bid for Europe based Syngenta flushed out a

rival bid from a Chinese peer that would ultimately earn approval from Syngenta’s board. Expectations of further mergers and acquisitions

("M&A") activity were soon vindicated as Monsanto found itself the target of a surprise takeover bid from German drugs & chemical group

Bayer. Although Agribusiness equities would subsequently underperform broader equities during the final months of the review year as more

encouraging signs over the outlook for the global economy convinced some investors to move from traditionally defensive areas to more cyclical

sectors, M&A related developments continued to influence agribusiness valuations. For example, Syngenta shares rallied sharply during the

third quarter of 2016 after ChemChina suggested that the takeover deal was in the process of gaining US regulatory approval. However, the

valuation slipped during the final weeks of the review year amid signs that European and US regulators were delaying the deal while seeking

more information regarding the consolidation of the global agricultural products sector following Bayer’s move for Monsanto.

Energy

This market review summary covers iShares Oil & Gas Exploration & Production UCITS ETF.

Exploration & production ("E&P") equities recovered strongly from initial declines, ending the Company’s review year with robust gains.

E&P stocks began the review year on a weak note, extending their earlier downtrend as oil and gas prices continued to slide. A disappointing

trading update from sector heavyweight ConocoPhillips further impacted on sentiment towards E&P stocks after the firm reported a steep fall

in revenues and earnings, also cutting its dividend and 2016 capital spending with a view to preserving cash. Nevertheless, sector valuations

climbed strongly from their late February 2016 lows, rising in line with energy prices on more encouraging Chinese economic data, news of the

ECB’s expanded stimulus package and optimism that the Fed would remain patient before raising interest rates. The rally extended throughout

the second quarter of 2016, underpinned by the potential for supply restrictions following Canadian wildfires. Subsequently, hopes that the

Chinese economic slowdown could be bottoming out, potentially boosting oil demand, and optimism that OPEC could yet agree on production

cutbacks provided a further impetus to oil prices during the third quarter. E&P equities ended the review year on a very firm note, bolstered by

news that a number of leading oil producing countries had reached a deal in conjunction with OPEC members to trim output.

Gold

This market review summary covers iShares Gold Producers UCITS ETF.

Investing in major companies involved in the exploration and production of gold and related products, the Fund delivered very strong gains,

driven by safe haven buying early in the Company’s review year.

Following their relatively modest positive returns during December 2015 and January 2016, gold producers’ share prices rallied sharply in early

February 2016. With fears rising over China’s economic outlook, underlying physical gold markets attracted safe haven buying, buoying

producers’ valuations. Although the rally in gold prices began to lose some steam in March and April 2016 as fears eased over the risk of a hard

landing for China’s economy, gold production equities, such as Barrick Gold Corp and Newmont Mining Corp, performed very strongly, helped by

positive broker commentary amid optimism that earnings would benefit from cost cutting implemented during the earlier industry downturn.

Following a brief setback in physical gold prices amid speculation that firmer US data could trigger higher US interest rates as soon as

September 2016, gold producers’ valuations rallied further on safe haven gold buying in the wake of the Brexit vote.

iSHARES V PLC




Commodities (continued)

Gold (continued)

Having held on to these gains for much of the third quarter of 2016 as the Fed refrained from raising rates amid European uncertainties, gold

related equities surrendered some of their earlier gains in October and November 2016. Despite the potential for higher inflation given President

elect Trump’s planned spending programme, the growing prospect of higher interest rates boosted the US Dollar, weighing on gold sector

valuations.

Against this unhelpful backdrop, despite posting solid quarterly earnings, leading gold producers, including Newmont Mining and Barrick Gold,

saw their share prices slide following the US election result. Nevertheless, driven by exceptional gains early in the review year, gold production

equities recorded very strong gains over the review year as a whole.

BlackRock Advisors (UK) Limited

December 2016

iSHARES V PLC

Chairman’s Statement


The Board of Directors considers corporate governance matters and adherence to codes of best practice to be of the utmost importance. As

Chairman of the Board, I believe that it has operated effectively throughout the financial year and that its role and its composition are well

defined, appropriate and support the long-term development of the Company.

Overview of the Company

iShares V public limited company (the "Company") is organised as an open-ended investment company with variable capital. The Company was

incorporated in Ireland on 2 December 2009 with limited liability and segregated liability between its Funds and is organised under the laws of

Ireland as a Public Limited Company (“plc”) pursuant to the Companies Act 2014 and the European Communities (Undertakings for Collective

Investment in Transferable Securities) Regulations, 2011 (as amended) (the "UCITS Regulations") and is regulated by the Central Bank of

Ireland (the "CBI").

The Company is structured as an umbrella Fund and comprises separate Funds (“Funds”) of the Company.

The term “Fund” shall be deemed to mean either a Fund of the Company, or if the context so requires, the Manager or its delegate acting for the

account of the relevant Fund. The term “BlackRock” is used to represent BlackRock Advisors (UK) Limited. The investment objectives and

policies of each Fund are set out in the prospectus and the relevant supplemental prospectus.

The Funds of the Company pursue strategies of either tracking or replicating the performance of a benchmark index in order to deliver the

objectives of each Fund.

The Manager has delegated the administration of the Company and its Funds to State Street Fund Services (Ireland) Limited (the

“Administrator”) including the calculation of the daily net asset value, and the preparation of the financial statements of the Company subject

to the overall supervision of the Directors and the Manager. State Street Fund Services (Ireland) Limited has also been appointed as the

registrar of the Company. The Company has appointed State Street Custodial Services (Ireland) Limited (the “Depositary”) as Depositary of the

assets with responsibility for the safe keeping of such assets, pursuant to the UCITS Regulations. As part of its fiduciary responsibility to the

Company the Depositary provides a certain level of ongoing oversight of the Company as well as reporting on the conduct of the Company i

Documents

ANNUAL REPORT AND AUDITED FINANCIAL STATEMENTS · 2017. 10. 2. · As of 1 February 2016, the Paying Agent in Switzerland changed from JPMorgan Chase Bank, National Association, Columbus,