The Fund seeks to achieve its objective by tracking the performance 
of the MSCI Korea 25/50 Net TR Index (AUD)

The Fund aims to provide investors with the performance of an index, before fees and expenses. The index is designed to measure the performance of Korean large-, mid- & small- capitalisation companies. 

The Fund will generally be exposed to the South Korean equity securities that form the Index and to depositary receipts representing securities of the Index.

The Fund may have limited exposure to securities that are not constituents of the Index, including derivatives, where such securities provide similar performance (with matching risk profile) to Index securities. However, from time to time the Fund may be exposed to all constituents of the Index.

The Fund will obtain exposure to the aforementioned securities indirectly, by investing in the Underlying Fund, which invests in such securities.

Generally, the Fund and Underlying Fund may also be exposed to a small allocation of cash (or cash equivalents, that may include other BlackRock Group funds) for cash flow management purposes.

This product is likely to be appropriate for a consumer seeking capital growth with a high to very high risk/return profile. This product is unlikely to be appropriate for a consumer with a short investment timeframe or as a whole portfolio solution

Optimisation is an indexing strategy that involves investing in a representative sample of securities that collectively has an investment profile similar to that of the Index.

The securities selected are expected to have, in aggregate, investment characteristics (based on factors such as market capitalisation and industry weightings), fundamental characteristics (such as return variability and yield) and liquidity measures similar to those of the Index.

Therefore, the securities to which each Fund is exposed may or may not include all of the securities in its Index and the weighting of such securities may differ to the weighting of securities in the Index.

The Fund will implement its optimisation investment strategy through an investment in a US domiciled version of the Fund, also called iShares MSCI South Korea ETF. 

Investment strategy

The Fund seeks to achieve its objective by tracking the performance of the MSCI Korea 25/50 Net TR Index (AUD) (referred to in this section 24 of the PDS as the Index).
We believe that an optimisation investment strategy is the most
appropriate investment strategy to track the performance of the
Index as it takes into account liquidity and transaction cost impact and overall risk relative to the Index.

Optimisation is an indexing strategy that involves investing in a
representative sample of securities that collectively has an
investment profile similar to that of the Index. The securities
selected are expected to have, in aggregate, investment
characteristics (based on factors such as market capitalisation and industry weightings), fundamental characteristics (such as return variability and yield) and liquidity measures similar to those of the Index. Therefore, the securities to which each Fund is exposed may or may not include all of the securities in its Index and the weighting of such securities may differ to the weighting of securities in the Index.

What does the Fund invest in?

The Fund will generally be exposed to the South Korean equity
securities that form the Index and to depositary receipts
representing securities of the Index. The Fund may have limited exposure to securities that are not constituents of the Index, including derivatives, where such securities provide similar performance (with matching risk profile) to Index securities. However, from time to time the Fund may be exposed to all constituents of the Index. Generally, the Fund may also be exposed to a small allocation of cash (or cash equivalents, that may include other BlackRock Group funds) for cash flow management purposes.

About the Index

The Index is designed to measure the performance of the large- and mid-capitalisation segments of the Korean market.
The Index is a free float-adjusted market capitalisation weighted
index, with a capping methodology applied to issuer weights so that no single issuer of a constituent exceeds 25% of the Index weight and all issuers with a weight above 5% do not, in the aggregate, exceed 50% of the Index weight. The Index is constructed with reference to an unconstrained free
float-adjusted market capitalisation weighted index, which is also
designed to measure the performance of the large- and midcapitalisation segments of the Korean market (referred to in this section 24 of the PDS as the Parent Index).

Reflecting the 25% and 50% concentration constraints is the
primary consideration in terms of both Index construction and
Index maintenance. Minimising the tracking error between the
Index and the Parent Index, while keeping the Index turnover to a reasonable level, is another important objective of the current
methodology. This is achieved by rebalancing the Index using an
optimisation process that aims to minimise the constituent weight differences between the Index and the Parent Index.
The Index rebalances quarterly in February, May, August and
November. The Index may undergo periodic unscheduled
rebalances at other times. Refer to the section of this PDS titled “Additional information about the Index” for further information.