IMPORTANT NOTICE ON THE TRANSLATION OF THIS PROSPECTUS

This is an unofficial and partial translation/abstract and should be used solely for reference purposes. If there is any discrepancy between this translation and the Japanese original, the latter shall prevail. This English translation is not required by law or any regulation applicable to BlackRock Japan Co., Ltd. (“The Company”). There is no guarantee that this translation will be updated in correspondence with the Japanese version. The information in this document is directed only at persons within Japan and is not directed at nor intended for use or distribution to persons in any jurisdiction in which this investment product is not authorised for distribution or where the dissemination of information regarding this investment product is not permitted. The Company has registered the fund in accordance with relevant laws and regulations in Japan. Registration with the Government of Japan is intended for residents of Japan and is not intended for distribution to, or use by, any person or entity from any other jurisdictions. All information contained herein has been prepared by the Company for informational or educational purposes only and it does not constitute a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The Company makes no representation, express or implied, that this translation is accurate or complete. The Company does not accept any responsibility whatsoever for any loss arising from any reliance on or action taken (or omission to take action) by any person using this translation. The Company reserves the right to change, modify, add or remove portions of this translation at any time for any reason. Such changes may be made without notice.

1

EXHIBIT A iShares Core Japan REIT ETF

Open-Type Investment Trust, Domestic, Real Estate Investment Trust, ETF, Index Type Explanatory Booklet on the Investment Trust (Mandatory Prospectus) November 10, 2018

* This booklet is a prospectus pursuant to the provisions of Article 13 of the Financial Instruments and Exchange Act. - In connection with the solicitation of iShares Core Japan REIT ETF (the “Fund”), the management company filed a securities registration statement with the Director General of the Kanto Local Finance Bureau on November 9, 2018 pursuant to the provisions of Article 5 of the Financial Instruments and Exchange Act (Law No. 25 of 1948). The filing took effect on November 10, 2018. - The Fund’s explanatory booklet on the investment trust (Prospectus on request) is available via the website of the management company. It is also available from an authorised participant upon request. In case you request it, please keep a personal record of that fact. - The complete terms and conditions of this investment trust fund are attached to the explanatory booklet on the investment trust (Prospectus on request). - In case a significant change is made to the content of the Fund, the intentions of unitholders will be confirmed in advance in accordance with the Act on Investment Trust and Investment Corporations (Law No. 198 of 1951). - The investment trust fund assets are separately managed by the trustee in accordance with the Trust Act.

Product Classification Attribute Category Unit-Type/ Open- Type

Investment Area

Investment Assets (Source of Income)

Independent Category

Supplementary Classification

Investment Assets

Frequency of Account Settlement

Investment Area

Target Index

Open- Type Investment Trust

Japanese Domestic

Real Estate Investment Trust

ETF

Index Type

Real Estate Investment Trust

Four times a year

Fund of Funds

Others (Tokyo Stock Exchange REIT Index)

* Please refer to the website of the Investment Trusts Association, Japan (http://www.toushin.or.jp/) regarding the definitions relating to product classification and attribute categories.

Management Company (person giving instructions for fund management) BlackRock Japan Co., Ltd. - Registered as a financial instruments firm with Director General of the Kanto Local Finance Bureau (Kinsho) No. 375 - Date established: March 11, 1988 - Paid-in Capital: 3,120 million yen - Total net asset value of investment trusts under management: 7,930 billion yen (as of August 31, 2018) <Detailed information about the Fund> - Please contact us if you need detailed information about the Fund.

Phone: 03-6703-4110 (9:00 to 17:00, business days) Website: http://www.blackrock.com/jp/

Trustee (person responsible for custody and management of Fund assets) Mitsubishi UFJ Trust and Banking Corporation

Please read this document carefully before deciding to purchase units of the Fund.

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Objective and Characteristics of the Fund Objective of the Fund iShares Core Japan REIT ETF aims to achieve a Net Asset Value per unit of the Fund (“NAV”) that closely corresponds to the movement of the Tokyo Stock Exchange REIT Index by investing mainly in real estate investment trust securities of the issues constituting and determined to constitute the Tokyo Stock Exchange REIT Index (the “Index” or the “Benchmark”). Characteristics of the Fund While the Fund is an open-type equity investment trust, its concept is to physicalise Index by utilising functions of an investment trust. Its product design is different from other ordinary investment trusts from the following viewpoints. 1. Units of the Fund (“Units”) are listed on the Tokyo Stock Exchange.

Units of the Fund can be traded at any time on the TSE. Units may be traded in blocks of 1 unit. Type 1 financial instruments firms engaged in trading may determine their trading commissions using multipliers that they decide on their own. The method of trading is the same as that of equity trading. For further information, please contact type 1 financial instruments business firm who are the members of the TSE.

2. Additional creation or redemption may be made only for the minimum number of units. Additional creation and redemption are limited to those for amounts required at least to create a portfolio reflecting the Index so that the Fund’s performance can closely correspond to the movement of the Index. Additional creation and redemption are done by unit called a creation unit. The creation unit is a unit displayed by the number of Units that the management company determines to create and redeem these rights. The management company also determines the number of Units corresponding to one creation unit every business day.

3. Securities may be used for additional creation and redemption.

Securities constituting the Index (the “Index ETF Constituent Securities”), as well as cash, which are necessary for the creation or redemption of one creation unit, are determined by the management company as a portfolio composition file (the “PCF”), and presented to authorised participants. If the Fund’s market price of Unit on the stock exchange deviates from its NAV, smooth price formulation on the stock exchange can be expected with reasonable arbitration that can shrink such deviation. *The “authorised participants” shall be the type I financial instruments firms that are designated by the management company as persons to apply for the creation of the Units and the redemption.

(A) Additional creation

Investors may create Units by contributing securities comprising the Index and cash as provided for in the PCF. (B) Redemption

Investors who own more than certain number of Units may redeem them in exchange for an equivalent amount of securities comprising the Index included in trust assets. The Fund may conduct securities lending. In this case, the Fund shall delegate authority to BlackRock Institutional Trust Company, N.A. in whole or in part to give instructions in respect of securities lending.

Investment Management Structure - Fund investment, management, and relevant roles are separated under the internal rules. - The management company’s investment management division controls the Fund’s investment management. - The management company has established an internal audit division, as well as a division giving feedback to relevant divisions after monitoring fund investment statuses, risk conditions and others. It has also established a section (function) to confirm whether investments are made in accordance with the investment policy of each fund. Such confirmation is conducted by holding Investment Committee Meetings, etc.

- The Stock Index Investment Division (approximately 4 persons) will be responsible for this Fund. * The Fund’s investment management structure may be changed in the future.

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Investment Restrictions In principle, there is no restriction as to the ratios of investment in investment trust securities. In principle, no investment will be made in assets denominated in foreign currencies. Distribution Policy In principle, the aggregate of dividend income (meaning the distributions, fees for loan securities and other similar incomeless interest on payments) after deduction of the expenses is distributed quarterly at the end of each financial period (February 9, May 9, August 9 and November 9, in principle). However, such distribution in the future, as well as its amount, is not guaranteed.

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Investment Risk Factors that contribute to fluctuations in the NAV of the Fund The NAV of the Fund is affected by the fluctuations of the invested securities held for the account of the Fund. All profits and losses arising from investment management of these trust asset investments are attributed to the investors. Accordingly, the principal amount of the Fund and profits arising from these investments are not guaranteed. Investors may incur a loss and the value of their investment principal may fall below its original principal amount as the result of a decline in the NAV. Investment trusts are different from bank deposits. The Fund’s major risks are as follows: - Risk of Investing in Real Estate Investment Trust Securities The Fund invests in real estate investment trust securities. The price of real estate investment trust securities fluctuates due to the conditions of the appraisal value, etc. of the owned real estate, changes in market interest rate, trends regarding real estate or stock market conditions and other factors. It may become difficult or even impossible to purchase or sell real estate investment trust securities if there is a decline in the liquidity of such securities due to rapid changes in markets or other events. In addition, real estate investment trust securities can be expected to be affected by risks associated with the management of such securities (such as delisting of such real estate investment trust securities). The performance of the Fund will be affected in the event of any such situation. - Securities Lending Risk Lending of securities involves counterparty risk, which is the risk of contractual default by the counterparty due to its insolvency or other events, and the Fund may suffer losses in such cases. Securities lending involves the risk that the fund may lose money because the borrower of the loaned securities fails to return the securities in a timely manner or at all. The fund could also lose money in the event of a decline in the value of collateral provided for loaned securities. To mitigate these risks, the fund may benefit from a borrower default indemnity agreement signed with an affiliated BlackRock company. The indemnity allows for full replacement of the securities lent if the collateral received does not cover the value of the securities loaned in the event of a borrower default. Other considerations The provision stipulated in Article 37-6 of the Financial Instruments and Exchange Act (“cooling-off period”) is not applicable to the Fund’s transactions. Considerations regarding profit distribution - Distribution is paid out of the Fund’s net assets and is different from interest earned on bank deposits. Thus,

the Fund’s NAV declines by the distribution amount when it pays out distribution. - The distribution amount is not always the same as income earned by the Fund during each financial period. Risk Management Framework The management company places an emphasis on risk oversight, and risks are managed using its proprietary system. More specifically, Fund’s investment risk is measured and analysed, and investment restrictions are monitored by an independent risk management department. This department confirms that the Fund’s investment risk profile meets the investment guideline, and gives feedback to investment teams and other relevant departments, with internal sharing of relevant results. Additionally, the management company’s operational risks are clearly defined in operational guidelines, and managed accordingly.

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(Reference Information) Comparison of the Fund with other representative asset classes in terms of percentage changes

(September 2013 to August 2018)

* The above graph represents the annual average, maximum and

minimum percentage changes at the end of each month during the five years between September 2013 and August 2018 for the Fund and other representative asset classes. The percentage changes for the Fund are calculated on assumption that the amount of distribution before tax is reinvested and may differ from the annual percentage change calculated based on the actual NAV. Because the establishment date of the Fund is October 19, 2015, the percentage changes for the Fund are calculated based on the value of the benchmark and differ from the actual results of the Fund.

* Not every asset class may be the investment target of the Fund. * Index of each asset class

Japanese equity: ·················Tokyo Stock Price Index

(TOPIX Total Return) Developed country equity: ·····MSCI Kokusai Index

(Total Return, Yen based) Emerging country equity: ······MSCI Emerging Markets Index

(Total Return, Yen based) Japanese government bond: ···Nomura Bond Performance Index

Government Developed country bond: ······FTSE World Government Bond Index

(excluding Japan, Yen based) Emerging country bond:········J.P. Morgan Government Bond Index-

Emerging Markets Global Diversified Index (Yen based)

(Note) Foreign indexes are yen-based, assuming investments with no currency hedge.

Annual percentage change and dividend-included NAV of the Fund

(September 2013 to August 2018)

* The above graph illustrates the amount and percentage changes of

dividend-included NAV as at each month-end of the year during a five-year period between September 2013 and August 2018. Because the annual percentage change shows the annual percentage changes of the benchmark, it is not the actual results of the Fund. The above graph illustrates the dividend-inclusive NAV for the period from the end of October 2015 to the end of August 2018.

* The dividend-included NAV is calculated on assumption that the amount of distribution before tax is reinvested and may differ from the actual NAV.

<Indexes> TOPIX (Total Return) is a benchmark calculated based on the total market capitalisation of all issues listed on the first section of the Tokyo Stock Exchange. TOPIX (Total Return) is an intellectual property of the Tokyo Stock Exchange, and all rights pertaining to this stock price index, including the index calculation and publication and use of the figures belong to the Tokyo Stock Exchange. The Tokyo Stock Exchange also holds the right to change the method of calculation or publication of TOPIX (Total Return), to terminate the method of calculation or publication of TOPIX (Total Return) or to change or terminate the use of trademark of TOPIX (Total Return). The MSCI Kokusai Index (Total Return, Yen based) and MSCI Emerging Markets Index (Total Return, Yen based) are benchmarks developed and calculated by MSCI Inc. The MSCI Kokusai Index (Total Return, Yen based) is an index which benchmarks the stock performance of developed countries of the world excluding Japan while the MSCI Emerging Markets Index (Total Return, Yen based) is an index which benchmarks the stock performance of emerging countries. The copyrights, intellectual property rights and all other rights concerning these indexes belong to MSCI Inc. In addition, MSCI Inc. holds the right to amend the content of each index and the right to terminate publication of these indexes.

47.8

65.057.1

37.2

9.3

29.121.4

-10.8 -22.0 -17.5

-27.4

-4.0 -12.3

-17.4

8.316.6 16.9

10.92.1 5.8 3.1

-40.0

-20.0

0.0

20.0

40.0

60.0

80.0（％）

Max Change % Min Change %

Average Change %

-40.0

-20.0

0.0

20.0

40.0

60.0

80.0

0

50,000

100,000

150,000

200,000

250,000

300,000

2013/09 2014/09 2015/09 2016/09 2017/09

Fund Annual Return (rightaxis)Benchmark Annual Return (right axis)NAV (with dividends reinvested; left axis) (％）(円）

6

Nomura Bond Performance Index Government is an index published by Nomura Securities Co., Ltd. to measure the movements of Japanese government bonds and is calculated with the return on investment of a portfolio. The intellectual property right concerning this index belongs to Nomura Securities Co., Ltd. Note that Nomura Securities Co., Ltd. does not guarantee the accuracy, completeness, reliability and effectiveness of Nomura Bond Performance Index Government and bears no responsibility whatsoever on business activities and services implemented by BlackRock Japan Co., Ltd. using the index. The FTSEWorld Government Bond Index (excluding Japan, Yen based) is a bond index published by FTSE Fixed Income LLC for benchmarking the overall investment return on government bonds of the world’s major countries excluding Japan. The copyright, trademark right, intellectual property right and all other rights concerning this index belong to FTSE Fixed Income LLC. The J.P. Morgan Government Bond Index-Emerging Markets Global Diversified Index (Yen based) is published by J.P. Morgan Securities LLC and is calculated to track local currency bonds issued by emerging market governments. The copyright concerning this index belongs to J.P. Morgan Securities LLC.

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Past Performance As of August 31, 2018

Changes in NAV and Net Assets

* The NAV figures are those after deduction of the trust fee. For the trust fee, please refer to “Expenses of Fund” below. The benchmark figures shown are multiplied by 100. Changes in Distributions

Cumulative total since creation 14,200 yen FY7 August 2017 1,500 yen FY8 November 2017 1,600 yen FY9 Febuary 2018 1,500 yen FY10 May 2018 1,200 yen FY11 August 2018 1,500 yen

*Distributions are the amount per 1000 units before tax. Status of major assets Top 10 stocks incorporated (%)

Name of stocks Ratio 1 NIPPON BUILDING FUND REIT INC 7.3 2 JAPAN REAL ESTATE INVESTMENT TRUST 6.9 3 NOMURA REAL ESTATE MASTER FUND REI 5.4 4 UNITED URBAN INVESTMENT REIT CORP 4.5 5 JAPAN RETAIL FUND INVESTMENT REIT 4.4 6 ORIX JREIT REIT INC 4.0 7 DAIWA HOUSE REIT CORP 3.8 8 NIPPON PROLOGIS REIT INC 3.4 9 ADVANCE RESIDENCE INVESTMENT REIT 3.2

10 JAPAN PRIME REALTY INVESTMENT REIT 3.0

0

500

1,000

1,500

2,000

2,500

0

50,000

100,000

150,000

200,000

250,000

2015/10 2016/01 2016/04 2016/07 2016/10 2017/01 2017/04 2017/07 2017/09 2017/12 2018/03 2018/06

Total net assets (right axis)

NAV (without distributions;

left axis)Benchmark (left axis)

(yen）(100 mil Yen)

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Changes in Annual Rates of Return * The rates of return of the Fund are calculated based on the NAV (without distribution). * The rates for the period from 2008 to 2014 shows the annual rates of return. * In 2015, the rate of return shows the rate from the creation date (October 19) to the end of the same year, and the benchmark shows the rates from the beginning to the end of each year.

* Past performance, data, etc. are those as of the preparation date, or past performance, data, etc., and do not guarantee future results. * Benchmarks are provided for reference purposes only, and do not represent the Fund’s performance results. * The status of investment by the Fund is separately disclosed on the website of the management company.

3.7% 7.3%

-10.2%

-51.8%

-0.8%

26.6%

-26.2%

33.6% 35.9%

25.3%

-7.9%

6.2%

-10.4%

-60%

-40%

-20%

0%

20%

40%

60%

FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Fund Benchmark

9

Procedures, Fees and Other Items Application Memo

Creation unit One Creation unit or its integral multiples thereof Creation Price NAV on the day a creation application is accepted

The Net Asset Value per Unit of the Fund is indicated on a per 100 Unit basis. Investors create Units with securities and cash as stipulated in the PCF. The management company shall present a PCF to the Authorised Participants on a business day immediately preceding the day a creation application is accepted.

Delivery (settlement) of creation basket

Delivery of securities and cash by the date designated by Authorised Participant in accordance with the creation application

Amount per share on inception date

The amount per share on the inception date will be 1,699 yen per Unit.

Redemption Unit One creation unit* or its integral multiples thereof. Redemption Price NAV on the day a redemption application is accepted

Trust assets invested in securities that are securities equivalent in value to the Units subject to the request for redemption are delivered to investors. The management company shall present the securities to be delivered (PCF) to the Authorised Participants on a business day immediately preceding a Units redemption request acceptance date.

Delivery (settlement) of redemption basket

Trust assets invested in securities are generally delivered to Authorised Participants or others requesting the redemption from the fourth business day after the acceptance date of redemption application.

Application Cutoff Time

15:00 Japan Standard Time on the creation application date or the acceptance date of redemption application * The application may not be canceled after the creation application is accepted by the management company.

Creation Application Period

From November 10, 2018 to November 9, 2019 *The application period is renewed by way of the filing of a securities registration statement before the expiration of the above period.

Days on which Creation and Redemption Applications are not accepted

Applications for creation and redemption of Units may not be accepted on the following days and periods (as outlined in 1) through 8) below). 1) For a period of two business days, beginning two business days prior to the

last day of the relevant financial period of the fund (record dates) (or, if such date falls on a holiday, for a period of three business days, beginning three business days prior to the account close date)

2) In the event that Management Company determines the Fund cannot be managed according to the Fund’s investment policies provided in the Trust Deed due to unavoidable circumstances.

3) For a period of three business days, beginning one business day prior to the ex-distribution or ex-rights day of any securities comprising the Index.

4) For a period of three business days, beginning one business day prior to the rebalance day for the securities comprising the Index, or the day the index component ratios of constituent issues are changed.

5) For a period, beginning one business day prior to the delisting day (due to the consolidation and split of any securities comprising the Index) and ending one business day after the Index inclusion day for new shares (due to such consolidation and split).

6) On any day on which trading of securities comprising the Index is suspended.

7) For a period of five business days prior to the date of termination, if the Fund terminates.

8) Any event other than in 1) through 7) above in which the Management Company determines the Fund’s operations may be undermined due to unavoidable circumstances.

Suspension and In cases where trading on the stock exchange is halted, settlement functions are

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Cancellation of Application for Creation and Redemption

suspended, circumstances are beyond the control of the Management Company, or the Management Company deems necessary, the Management Company may suspend and/or cancel the applications for creation and redemption of Units.

Trust Period Indefinite Period (Established on October 19, 2015) Early Termination

The Management Company may terminate the trust early before the expiration of the trust term (early redemption) if it considers that the termination is beneficial to the investors, the number of Units is less than 500,000 after the day that is three (3) years from the creation day, or the circumstances beyond the Management Company’s control necessitate. The trust may also be terminated if the Fund’s units are delisted from all the stock exchanges they are listed, or if Index is discontinued.

Record Dates February 9, May 9, August 9 and November 9 of Each Year

Distribution

Distributions are paid twice a year in accordance with the Fund’s distribution policy.

Maximum Trust Assets

Securities and cash that are equivalent to 10 trillion yen

Public Notification of Important Announcements

Public notice the management company issues to unitholders shall be posted on the website shown below by means of electronic notice: www.blackrock.com/jp/

Management Reports

Management reports are not prepared and published.

Tax Treatment

For tax purposes, the Fund is treated as a specified stock investment trust. Publicly-offered stock-type investment trusts are subject to the Nippon Individual Savings Account under tax laws. Tax credit for distributions and the exclusion from gross revenue may not apply.

11

Fund Expenses and Taxes Fund Expenses Expenses to be borne directly by investors Details of expenses Broker Commissions charged on creation orders

Authorised Participants may independently set application commissions (including consumption taxes, etc.), and receive them from investors. Please contact your Authorised Participants for further information.

Consideration for explanation of instruments at the time of subscription and administrative procedures relating to the creation

Subscription/Redemption Charge

N/A -

Broker Commissions charged on redemption orders

If an Authorised Participant receives a request for redemption or repurchase of Units from an investor, it may receive commissions (including consumption taxes, etc.) that it independently sets from the investor. Please contact your Authorised Participants for further information.

Consideration for administrative procedures relating to the redemption (repurchase)

Expenses to be borne indirectly by investors (i.e. expenses paid out of the Fund’s assets)

Details of expenses

Management Fee (Trust Fee)

The Fund’s total net assets at an annual rate of 0.1728%* (0.16% excluding taxes) or less * The trust fees are calculated daily and paid out of the Target ETF’s assets at the book close and at the termination of the trust.

Management fees (trust fees) ＝ NAV during the management term x trust fee ratio

Breakdown of Management Fee

Management Company

Annual rate of 0.1458% (0.135% excluding taxes)

Consideration for fund management, calculation of the NAV, preparation of various documents, and other related services

Trustee Annual rate of 0.027% (0.025% excluding taxes)

Consideration for administration of investment assets, execution of instructions received from the management company, and other related services

Other Expenses and Fees

The Fund’s total net assets at the maximum annual rate of 0.0486% (0.045% excluding taxes) are paid out of the Fund’s assets for listing fees and usage fees of trademark of the Index at the end of each fiscal year or at trust’s termination. Fund’s costs and expenses, and brokerage commissions are paid out of the Fund’s assets from time to time. If the Fund conducts securities lending, at most one half of the amounts of negative interest of per diem, which are proceeds of the Fund, will be paid to the entrusted company etc. as fees from time to time. *Rates, maximum amounts, etc. of other expenses and fees are not shown in advance as they fluctuate with past performance and other factors.

- Fund’s costs and expenses: Auditing fees of the Fund’s financial statements, taxes imposed on the trust assets, fees charged on fund management, and interests accrued on the amount paid by the trustee company in advance - Brokerage commissions: Commissions charged on buy and sell orders of Fund’s investment securities

*The total amount of commissions, expenses, etc. of the Fund to be borne by investors varies depending on the holding period of the shares of the Fund. *Broker commissions charged on creation orders, exchange (purchase fees), management fees (trust fees), and other expenses and fees

12

include consumption tax and local consumption tax. Taxes - Taxes are incurred as outlined below. - The following table shows withholding tax rates for individual investors, which may vary depending on taxation methods, etc.

Transaction Item Tax

Distribution Income tax and local tax Taxable as dividend income 20.315% of a distribution amount

Repurchase and Redemption Income tax and local tax

Taxable as capital gains 20.315% of capital gains on the repurchase and redemption

*In the case that the Nippon Individual Savings Account (known as “NISA”) is used: In the case of the use of NISA, the taxes on the dividend income and capital gains arising from the publicly-offered stock-type investment trusts and other instruments that are newly purchased up to a certain amount each year will be exempted for a certain period of time.. A person who satisfies certain requirements such as opening of a tax-exemption account at the distributor may use NISA. For the details thereof, including the amounts and periods eligible for tax exemption, please contact the your type I financial instrument business firm.

*Different tax rates are applicable to corporations. *Tax rates, etc. may be changed if tax laws are revised because the above tax rates are as of the last day of August 2016. It is recommended that investors consult tax professionals or equivalent persons regarding details of tax treatment.

Copyright and other rights relating to the Tokyo Stock Exchange REIT Index

(1) The value of Tokyo Stock Exchange REIT Index and the trademark or emblem of Tokyo Stock Exchange

REIT Index are intellectual properties of Tokyo Stock Exchange, Inc. (“TSE”), and all of the rights and knowhow relating to the method of calculation or publication of the value of Tokyo Stock Exchange REIT Index, and all of the rights relating the trademark or emblem of Tokyo Stock Exchange REIT Index, belong to TSE.

(2) TSE may change the method of calculation or publication of the value of Tokyo Stock Exchange REIT Index, suspend calculation or publication of the value of Tokyo Stock Exchange REIT Index, or change or suspend the use of the trademark or emblem of Tokyo Stock Exchange REIT Index.

(3) TSE does not guarantee or allude to the results that may arise from the use of the value of Tokyo Stock Exchange REIT Index or the trademark or emblem of Tokyo Stock Exchange REIT Index, or the value of Tokyo Stock Exchange REIT Index on a specified date.

(4) TSE does not warrant the accuracy or completeness of the value of Tokyo Stock Exchange REIT Index or the data included therein. In addition, TSE is not responsible for any error, delay or suspension of the calculation or publication of the value of Tokyo Stock Exchange REIT Index.

(5) iShares Core Japan REIT ETF is not provided, guaranteed or sold by TSE. (6) TSE is not obligated to give explanation of, or advise on investment in, iShares Core Japan REIT ETF to the

purchasers of iShares Core Japan REIT ETF or to the public. (7) TSE will not factor the needs of BlackRock Japan Co., Ltd. [訳注：「当社」] or the purchasers of iShares

Core Japan REIT ETF into the stock composition or computations by which the value of Tokyo Stock Exchange REIT Index is calculated.

(8) Without limiting the foregoing, TSE is not liable for any damage arising from the issue, sale or purchase of iShares Core Japan REIT ETF.

13

EXHIBIT B

iShares Core Japan REIT ETF

Open-End Investment Trust/Domestic/Real Estate Investment Trust/ETF/index-type

*For tax purposes, the Fund is treated as a specified stock investment trust.

Explanatory Booklet on the Investment Trust (Prospectus on Request) November 10, 2018

※This booklet is a prospectus pursuant to the provisions of Article 13 of the Financial Instruments and Exchange Act.

14

1. In connection with the solicitation of iShares Core Japan REIT ETF (the “Fund”), the management company filed a securities registration statement with the Director General of the Kanto Local Finance Bureau on November 9, 2018 pursuant to the provisions of Article 5 of the Financial Instruments and Exchange Act (Act No. 25 of 1948). The filing took effect on November 10, 2018. 2. The Net Asset Value per unit of the Fund is affected by the fluctuation of currency exchange rates, as well as that of the prices of securities that are included into the Fund, and all profits or losses arising out of the management shall be attributed to the investors. The principal is not guaranteed. 3. The Fund is not covered by the protection of the Deposit Insurance Corporation or Insurance Policyholder Protection Corporation. When the sales company is a registered financial institution, the Fund is not covered by Investor Protection Corporation.

Issuer: BlackRock Japan Co., Ltd. Name and title of representative: President and Representative Director, Yoshiyuki Izawa Address of registered office: 8-3, Marunouchi 1-Chome, Chiyoda-ku, Tokyo Place at which a copy of the security registration statement is made available for inspection: Tokyo Stock Exchange (Address: 2-1 Nihonbashi-Kabutocho, Chuo-ku, Tokyo)

15

Part I. Securities Information (1) Name of the Fund

iShares Core Japan REIT ETF (the “Fund”)

(2) Type of Unit Certificate of Domestic Investment Trust, etc. The Units of the Fund are unit certificates of an open-end investment trust. The initial principal amount of the Fund is 1,699 per Unit. The Units of the Fund are subject to the Act on Book-Entry Transfer of Company Bonds, Shares, etc. (the “Book-Entry Transfer Law”) and attribution of the Units is determined by listing or registering in the book-entry transfer account book with a book-entry institution provided in “(11) Item on Book-Entry Institution” below and a sub institution of such book-entry institution for account management (meaning “the Account Management Institution” provided in Article 2 of the Book-Entry Transfer Law and hereinafter referred to as the “Book-Entry Institution, etc.” including the book-entry institution) (hereinafter the Units to be settled by listing or registering in the book-entry transfer account book shall be referred to as the “Book-Entry Units”). Except for unavoidable circumstances, the management company will not issue unit certificates representing the relevant Book-Entry Units. The Book-Entry Units are not in blank or nominative form. With regard to the Fund, there are no credit ratings that are assigned by or provided for review by any registered credit rating agency at the request of the management company, or that will be assigned by or provided for review by any registered credit rating agency.

(3) The Sum of Issuing (Selling) Amounts Up to 10 trillion yen

(4) Issuing (Selling) Price To be the Net Asset Value per Unit of the Fund*1 as of the day on which a creation application is accepted An application for a creation shall be deemed to be accepted on the application date when such application is made before 3:00 pm and for which administrative procedures by the Authorised Participant*2 involved in such application for a creation is completed. *1 “Net Asset Value per Unit” means the Net Asset Value divided by the number of Units as of the calculation

date. In this Fund, the Net Asset Value per Unit is indicated on a per 100 Unit basis. *2 The “Authorised Participant” shall be the type I financial instruments business firm that is designated by

the management company as a person to apply for the creation of the Units and the redemption. Contact point for price inquiries of the Net Asset Value per Unit The Net Asset Value per unit of the Fund is available by inquiring at an Authorised Participant* or by calling the management company.

BlackRock Japan Co., Ltd. Phone Number: 03-6703-4110 (from 9:00 am to 5:00 pm on business days) Official company website: www.blackrock.com/jp/

(5) Application Fee

To be the amount that the relevant Authorised Participant decide at its sole discretion For further information, please contact the relevant Authorised Participant. Investors shall pay the application fee together with the amount equivalent to consumption taxes and regional consumption taxes imposed on it (the “Amount equivalent to Consumption Taxes, etc.”) with regard to the application to the Authorised Participants.

(6) Creation Unit One creation unit* or its integral multiples *A creation unit means a unit expressed in the number of the Units that the management company determines in order to create or redeem the Units. The details of— (i) the securities comprising the Index (the “Index ETF Constituent Securities”) and (ii) cash

—that are necessary to create or redeem one creation unit shall be determined by the management company as the portfolio composition file (the “PCF”) and shall be presented to the Authorised Participants.

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The number of the Units corresponding to one creation unit shall be determined by the management company on a daily basis.

(7) Period for Application From November 10, 2018 to November 9, 2019 ※The period for application may be extended by filing the security registration statement before the expiry of the above period.

(8) Place to Process Applications With regard to the place to process applications for the Fund, please inquire at the following contact point.

BlackRock Japan Co., Ltd. Phone Number: 03-6703-4110 (from 9:00 am to 5:00 pm on business day) Official company website: www.blackrock.com/jp/

(9) Date of Payment

Continuous application period Investors in the Units shall deliver the Index ETF Constituent Securities and the cash in respect of such creation application on or before the date designated by the Authorised Participants. Securities of each issue at the time of the creation shall be held in custody.

(10) Place of Payment Please deliver the Index ETF Constituent Securities and the money pertaining to your application for creation

to the Authorised Participants of the application. Some branches or offices of certain Authorised Participants may not process subscriptions. For further information, please inquire at the contact point provided in “(8) Place to Process Applications.

(11) Item on Book-Entry Institution The Book-Entry Institution regarding the Units of the Fund is as follows: Japan Securities Depository Center, Inc. (12) Others (A) Method of Application Investors who apply for the creation of Units shall make an application in accordance with the method

prescribed by and within the business hours of the Authorised Participants. (B) Issuance outside Japan N/A (C) Non-Application Days The management company may not accept applications for the creation of the Units on the date or period

mentioned in the following (i) to (viii). In this case, the management company does not present the PCF. (i) For a period of two business days, beginning two business days prior to the fund’s account close

dates (or, if the account close date falls on a holiday, for a period of three business days, beginning three business days prior to the account close date).

(ii) In the event that the management company determines the Fund cannot be managed according to the Fund’s investment policies provided in the Trust Deed due to unavoidable circumstances.

(iii) For a period of three business days, beginning one business day prior to the ex-distribution or ex-rights day of any Index ETF Constituent Securities.

(iv) For a period of three business days, beginning one business day prior to the rebalance day for the Index ETF Constituent Securities, or the day the index component ratios of constituent issues are changed.

(v) For a period, beginning one business day prior to the delisting day (due to the consolidation and split of any Index ETF Constituent Securities) and ending one business day after the Index inclusion day for new shares (due to such consolidation and split).

(vi) On any day on which trading of the Index ETF Constituent Securities is suspended. (vii) For a period of five business days prior to the date of trust termination, if the Fund terminates. (viii) Any event other than in (i) through (vii) above in which that the management company determines

the Fund’s operations may be undermined due to unavoidable circumstances.

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(D) Units in a Book-Entry Transfer Form Since the Units of the Fund were transferred to the book-entry transfer system of investment trust

(sometimes referred to as the “Book-Entry System”), the rights shall be subject to provisions of the Book-Entry Transfer Law and shall be treated in accordance with provisions of operational rules, etc. concerning the book-entry work of the book-entry institution mentioned in “(11) Item on Book-Entry Institution” above.

Payment or delivery of dividends, redemption money and redemption securities shall be made in accordance with the Book-Entry Transfer Law and operational and other rules of the book-entry institution mentioned in above “(11) Item on Book-Entry Institution”.

(Reference) Occurrence, determination and transfer of the Units of the Fund are managed by computer system. No unit certificates will be issued, because the creation, redemption and cancellation are made by listing or

recording on book in the computer system (the “Book-Entry Account Book”).

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Part II. Fund Information Section 1. Status of the Fund 1. Characteristics of the Fund (1) Purpose and Basic Characteristics of the Fund (A) iShares Core Japan REIT ETF (the “Fund”) aims to achieve the Net Asset Value per unit of the Fund (“NAV”) that closely corresponds to the movement of the Tokyo Stock Exchange REIT Index by investing mainly in real estate investment trust securities of the component securities of the Tokyo Stock Exchange REIT Index (hereinafter the “Index” or “Benchmark”). It basically incorporates or is determined to incorporate shares of all constituents of the Index. The management company is entitled to add to the trust property up to a ceiling of 10 trillion yen (¥10,000,000,000,000) in securities and cash, and is entitled, subject to consent of the trustee company, to change the said ceiling. (B) Predominant feature of the Fund The Fund is an open-ended and subsequently offered securities investment trust provided under the concept that investment trust functions can be used to make the Index spot tradable. Its product design is different from other ordinary investment trusts from the following viewpoints: 4. Units of the Fund (“Units”) are listed on the Tokyo Stock Exchange.

The Units of the Fund can be traded on the Tokyo Stock Exchange at any time. Units may be traded in blocks of 1 unit. Type I financial instruments business firms engaged in trading may determine their trading commissions using multipliers that they decide on their own. The method of trading is as a general rule the same as that of equity trading. For further information, please contact the relevant type I financial instruments business firm which is a member of the Tokyo Stock Exchange.

5. Additional creation and redemption are limited to those involving a certain minimum number of units. Additional creation and redemption are limited to those for an amount at least equal to the amount required to create a portfolio reflecting the Index so that the Fund’s performance can closely correspond to the movement of the Index. Additional creation and redemption are done by a unit called a creation unit. The creation unit is a unit displayed by the number of Units that the management company determines to create and redeem these rights.

6. The constituent securities of the Index may be used for additional creation and redemption. The constituent securities of the Index (the “Index ETF Constituent Securities”), as well as cash, which are necessary for the creation or redemption, are determined by the management company as a portfolio composition file (the “PCF”), and presented to the Authorised Participants. If the market price on the stock exchange of a Fund’s Unit deviates from its NAV, smooth price formulation on the stock exchange can be expected with reasonable arbitration that can shrink such deviation.

7. The Fund may carry out securities lending. In this case, the Fund will delegate all or part of the authority related

to the instructions for securities lending to BlackRock Institutional Trust Company, N.A. [Product Classification] The product classification of the Fund based on the “Guideline for Product Classification” established by the Investment Trusts Association, Japan, is as follows: The product classification and attributes applicable to the Fund are shaded in the table.

[Product Classification Table]

Unit Type/ Open-end Type Investment Area

Investment Assets (Source of Income)

Independent Category

Supplementary Classification

Unit-type investment trust

Domestic

Foreign

Equity Bond

Real estate

MMF

MRF

Index type Special type

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Open-end investment trust

International

Other assets Asset mix

ETF

[Attribute Category Table]

Investment Assets Frequency of

Account Settlement

Investment Area Investment

Form Target Index

Equity General

Large-cap issue Small/medium-cap

issue Bond

General Public bond

Corporate bond Other bond

Credit attribute Real estate

investment trust Other assets Asset mix

Asset allocation fixed type

Asset allocation variable type

Once a year Twice a year

Four times a year Six times a year

(every other month)

Twelve times a year (every

month) Daily Other

Global Japan

North America Europe

Asia Oceania

Latin America Africa

Middle & Near East (Middle

East) Emerging

Family fund

Fund of funds

Nikkei 225 TOPIX Other

(Tokyo Stock Exchange REIT Index)

[Definitions of Product Classification]

Item Applicable Product Classification Description

Unit Type or Open-end Type Open-end investment trust

Means the fund where additionally established trust property is managed together with the initially established trust property

Investment Country Japanese Domestic

Means the fund where main investment income derives effectively from domestic assets, as set forth in the Prospectus or the Trust Deed of the Investment Trust (the “Trust Deed”)

Investment Assets (source of income) Real estate investment trust (REIT)

Means the fund where main investment income derives effectively from beneficiary securities of real estate investment trusts and investment securities of real estate investment corporations, as set forth in the Prospectus or the Trust Deed

Independent Classification ETF

Means the securities investment trust specified in Article 12, items 1 and 2 of the Ordinance for Enforcement of the Act on Investment Trusts and Investment Corporations (Cabinet Order No. 480 of 2000) and the listed securities investment trust specified in Article 9-4-2 of the Act on Special Measures Concerning Taxation (Act No. 26 of 1957)

Supplementary Classification Index Fund

Means the type of fund where past performance linked to various indices will be sought, as set forth in the Prospectus or the Trust Deed

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[Definitions of Attribute Classification] Item Applicable Attribute Classification Description

Investment Assets Real estate investment trust Mean the assets which mainly invest in real estate investment trust, as set forth in the Trust Deed

Frequency of Account Settlement Once quarterly

Means the fund where the financial results are to be closed once quarterly, as set forth in the Prospectus or the Trust Deed

Investment Country Japan Means the investment income derives from Japanese assets, as set forth in the Prospectus or the Trust Deed

Investment Form Fund of funds Means the fund of funds as set out in Article 2 of the Regulations on Management of Investment Trust Etc.

Index Other Means all indices other than the Nikkei 225 or TOPIX

*For overall definitions of the product classification and attribute classification, please visit the website for the Investment Trusts Association, Japan (http://www.toushin.or.jp). (2) History of the Fund October 19, 2015 Trust deed concluded, fund established, investment started October 20, 2015 Listed on the First Section of the Tokyo Stock Exchange November 10, 2018 Changed Fund Name from [iShares Japan REIT ETF] to [iShares Core Japan REIT ETF]

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(3) Structure of the Fund (A) Structure of the Fund a. Securities investment trust deed

In forming the Fund, this contract will be executed pursuant to the provisions of the Act on Investment Trusts and Investment Corporations (the “Investment Trust Act”), and entered into by and between the management company and the trustee company in accordance with the trust deed registered in advance with the supervisory authorities. The principal provisions of the contract include basic investment policies, matters related to the services of the management company and trustee company, matters related to management of the principal of and income from the trust assets, and investment instructions.

b. Authorised Participants contract This contract prescribes matters related to designation of authorised participants, creation of units, requests for redemption, brokerage service for Authorised Participants, brokerage commissions, etc.

c. Delegation agreement for securities lending instructions in respect of the trust assets The delegation agreement stipulates the delegation of the authority to an agent for making securities lending instructions, as well as the details of the said lending operations, etc.

(B) Overall condition of the management company The overall condition of the management company as of the end of August 2018 was as described below: a. Amount of capital ¥3,120 million b. Corporate history

January 1985 Merrill Lynch Investment Advisory Co., Ltd. (subsequently named “Merrill

Tokyo Stock Exchange

iShares Japan REIT ETF

Fund

BlackRock Japan Co., Ltd. (Investment instructions, etc. for trust assets)

Management company

Mizuho Trust & Banking Co., Ltd. (Trust assets administration service)

Master trustee company: Trust & Custody Services Bank, Ltd.

Trustee company

listed

Securities investment trust contract

(Dealings in subscription and distribution; services related to creation and redemption)

Authorised Participants

Authorised Participant Agreement

BlackRock Institutional Trust Company, N.A. (Carry out stock lending upon delegation of authority related to instructions for management of the trust assets)

Investment adviser

Agreement for delegation of authority related to instructions for lending of stocks in the trust assets

Investors

Trading

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Lynch Investment Managers Co., Ltd.”) established Mar. 1987 Registered as a securities investment advisor Jun. 1987 Obtained license for discretionary investment business Dec. 1997 Obtained license for investment trust management business

March 1988

Barclays de Zoeta Wedd Co., Ltd. (subsequently named “Barclays Global Investors Co., Ltd.”) established Jun. 1988 Registered as a securities investment advisor Jan. 1989 Obtained license for discretionary investment business Mar. 1998 Obtained license for investment trust management business

April 1999

Nomura BlackRock Asset Management Co., Ltd. (subsequently named “BlackRock Japan Co., Ltd.”) established Jun. 1999 Registered as a securities investment advisor Aug. 1999 Obtained license for discretionary investment business

October 2006

Merrill Lynch Investment Managers Co., Ltd. merged with BlackRock Japan Co., Ltd. as surviving company New trade name: “BlackRock Japan Co., Ltd.”

December 2009

Barclays Global Investors Co., Ltd. merged with BlackRock Japan Co., Ltd. as surviving company New trade name: “BlackRock Japan Co., Ltd.”

c. Status of Major Shareholder

Shareholder’s Name Address Number of Shares Held

Percentage of Shares Held

BlackRock Japan Holdings Limited Liability Company

1-8-3 Marunouchi, Chiyoda-ku, Tokyo 15,000 shares 100%

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2. Investment Policy (1) Investment Policy (A) The Fund will seek to achieve investment results highly linked to movements of the Index by investing primarily in the real estate investment trust securities constituting and determined to constitute the Index. (B) The Fund will adjust the weight of its incorporated issues, if: the constituent issues of the Index change, there is a change in capital, or if the index component ratios of

constituent issues are modified or such modification is announced; the method for calculation of the Index is amended; any additional entrustment/redemption is executed for the Fund; or otherwise the management company determines it necessary in order to achieve investment in accordance with

the “basic investment policy” provided for in the Trust Deed. If any surplus fund accrues in the process of adjustment, such surplus fund may be invested in a call loan or a similar instrument until such time as said surplus fund is invested in real estate investment trust securities. (C) The Fund may take a long position in real estate investment trust index futures transactions with an aim to achieve investment results linked to movements of the Index. (D) The Fund will delegate all or part of its authority related to the instructions for securities lending to BlackRock Institutional Trust Company, N.A. (E) Investment in the manner described above may not be possible due to capital trends, market conditions or remaining trust term.

The Fund aims to maintain high correlations with its benchmarks by constructing a portfolio to replicate the benchmarks as much as possible in terms of sector weights, constituents and other characteristics.

*The management company will exercise control by means of trade execution management policies and other internal regulations to ensure that interests of investors are not affected when executing or intending to execute a transaction with a potential risk of prejudice to interests of investors as a result of promoting the benefit of its own or a third party.

About Copyright, etc. relating to the Tokyo Stock Exchange REIT Index

(1) The value of Tokyo Stock Exchange REIT Index and the trademark or emblem of Tokyo Stock Exchange REIT Index are intellectual properties of Tokyo Stock Exchange, Inc. (“TSE”), and all of the rights and knowhow relating to the method of calculation or publication of the value of Tokyo Stock Exchange REIT Index, and all of the rights relating the trademark or emblem of Tokyo Stock Exchange REIT Index, belong to TSE.

(2) TSE may change the method of calculation or publication of the value of Tokyo Stock Exchange REIT Index, suspend calculation or publication of the value of Tokyo Stock Exchange REIT Index, or change or suspend the use of the trademark or emblem of Tokyo Stock Exchange REIT Index.

(3) TSE does not guarantee or allude to the results that may arise from the use of the value of Tokyo Stock Exchange REIT Index or the trademark or emblem of Tokyo Stock Exchange REIT Index, or the value of Tokyo Stock Exchange REIT Index on a specified date.

(4) TSE does not warrant the accuracy or completeness of the value of Tokyo Stock Exchange REIT Index or the data included therein. In addition, TSE is not responsible for any error, delay or suspension of the calculation or publication of the value of Tokyo Stock Exchange REIT Index.

(5) iShares Core Japan REIT ETF is not provided, guaranteed or sold by TSE. (6) TSE is not obligated to give explanation of, or advise on investment in, iShares Core Japan

REIT ETF to the purchasers of iShares Core Japan REIT ETF or to the public. (7) TSE will not factor the needs of BlackRock Japan Co., Ltd. or the purchasers of iShares Core

24

Japan REIT ETF into the stock composition or computations by which the value of Tokyo Stock Exchange REIT Index is calculated.

(8) Without limiting the foregoing, TSE is not liable for any damage arising from the issue, sale or purchase of iShares Core Japan REIT ETF.

(2) Investment Objective (A) Types of Assets Constituting Investment Objectives The types of assets constituting investment objectives for this trust are specified assets listed below (“Specified Assets” mean those Specified Assets which are specified in the Act on Investment Trusts and Investment Corporations; the same shall apply hereafter).

(a) Securities; (b) Rights pertaining to Derivative Transactions (meaning the Derivative Transactions specified in Article 2,

paragraph 20 of the Financial Instruments and Exchange Act (the “FIX Act”) and limited to those prescribed in Article 27 of the Trust Deed);

(c) Monetary claims (including deposits and call loans but excluding monetary claims falling into (a) and (d)); and

(d) Promissory notes. (B) Scope of instructions for investment in Securities The management company will give instructions to invest the trust property primarily in the beneficiary securities of investment trusts or foreign investment trusts (meaning the beneficiary securities specified in Article 2, paragraph 1, item 10 of the FIX Act) and the investment securities or foreign investment securities (meaning those specified in Article 2, paragraph 1, item 11 of the FIX Act) as well as the following Securities (excluding those rights listed in the items of Article 2, paragraph 2 of the FIX Act which, pursuant to the provisions of said paragraph and items, shall be deemed as Securities):

(a) National government bonds; (b) Municipal bonds; (c) Bonds issued by a juridical person under a special act

and company bonds (excluding warrant certificates of company bonds with warrant where warrant certificates and company bonds come together and short-term company bonds);

(d) Short-term company bonds (meaning the short-term company bonds specified in Article 66, item 1 of the Act on Book-Entry of Company Bonds, Shares, etc., short-term bonds specified in Article 61-10, paragraph 1 of the Insurance Business Act, specified short-term bonds specified in Article 2, paragraph 8 of the Act on the Securitisation of Assets, short-term commercial and industrial bonds specified in Article 33-2 of the Shoko Chukin Bank Act, short-term bonds specified in Article 54-4, paragraph 1 of the Shinkin Bank Act and short-term Norinchukin Bank bonds specified in Article 62-2, paragraph 1 of the Norinchukin Bank Act);

(e) Commercial paper; (f) Securities or certificates which have been issued by a Foreign State or foreign person and have the nature

of securities and certificates listed in the preceding items; and (g) Negotiable certificates of deposit issued by a foreign juridical person.

The securities specified in (a) through (c) will hereinafter be referred to as the “Public and Corporate Bonds.” The management company may only give instructions to invest in the Public and Corporate Bonds only in the case of buying repurchase transactions (purchase subject to sell-back) and bond lending transactions (cash-secured bond lending). (C) Scope of instructions for investment in Financial Instruments In addition to the Securities listed in ○2 above, the management company is entitled to give instructions to invest the trust money in the Financial Instruments listed below (including those rights listed in the items of Article 2, paragraph 2 of the FIX Act which, pursuant to the provisions of said paragraph and items, shall be deemed as Securities):

(a) Deposits; (b) Designated money in trust (excluding the unit certificates-issuing trust specified in Article 2, paragraph 1,

item 14 of the FIX Act); (c) Call loans; and (d) Bills traded in the bill discount market.

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(3) Investment Framework [Investment Framework]

- Fund investment, management, and relevant roles are separated under the internal rules. - The management company’s investment management division controls the Fund’s investment management. - The management company has established an internal audit division, as well as a division giving feedback to relevant divisions after monitoring fund investment statuses, risk conditions and others. It has also established a section (function) to confirm whether investments are made in accordance with the investment policy of each fund. Such confirmation is conducted by holding Investment Committee Meetings, etc. - The Stock Index Investment Division (approximately 4 persons) will be responsible for this Fund.

[Decision-Making Process]

- Prior to commencing portfolio investment, the Stock Index Management Meeting will review basic investment matters (including investment objectives, investment policies, basic terms and conditions of an investment trust, and operational constraints) and determine basic investment policies and investment plans. Basic investment policies and investment plans will be reported to the Investment Committee. - Investment environment analysis, market analysis, establishment of investment models, all of which are necessary for building and operating a portfolio, will be conducted by the Portfolio Management Meeting which is anchored by investment units. By adopting investment models, BlackRock executes investments where the arbitrariness of a specific individual person would not easily come into play, but the Portfolio Monitoring Meeting will also monitor and check if such investment models are functioning validly, come up with remedial measures if needed, and implement countermeasures in the wake of a sudden market change. - Investment Committee will periodically analyze and examine investment risks and performances.

*The Fund’s investment framework may be changed in the future. The BlackRock Group

With around $6.30trillion (approximately 698 trillion yen)* in assets under management, the BlackRock group is one of the world’s largest independent asset management groups, and the company is its local Japanese subsidiary. The group manages a variety of asset classes such as stocks, bonds, cash management and alternative investments for institutional and individual investors throughout the world. The group also provides risk management, investment system outsourcing and financial advisory services to institutional investors. * As of the end of June 2018 (based on an exchange rate of $1 = 110.765 yen)

(4) Distribution Policy (A) As a general rule, the aggregate of dividend income (meaning the distributions, fees for lending securities and other similar incomeless interest on payments) after deduction of the expenses will be distributed quarterly at the end of each of financial period (February 9, May 9, August 9 and November 9, in principle). (B) With respect to each trust calculation period, the entire amount of income including dividends generated from the trust property and any amount of provision for distribution carried over from the previous period, after deducting the sum of trust fees and expenses provided in the Trust Deed and consumption tax and other taxes thereon (“expenses” in this paragraph) and then supplying in full any negative amount of provision for distribution carried over from the previous period, will be distributed to investors; provided, however, that if, for the purpose of adjusting the amount of income distribution, the whole or a part of such income is retained within the trust property, such retained fund will be accumulated as a provision for distribution, and such provision may be applied to distributions on the occasions of the following or subsequent distributions. In the event that expenses and any negative amount of provision for distribution cannot be fully deducted, the difference will be carried over to the following term as the negative amount of provision for distribution. Neither any payment of distributions in the future nor any amount thereof is guaranteed. (C) If, after the sum of the losses described in b below is deducted from the sum of the profits that are generated from the trust property and are described in a below, any retained loss is incurred, the entire amount of such loss would be compensated for and carried forward to the following term: a. Gains on securities trading, gains on futures transactions, marginal gains on additional trust, and marginal gains

on redemption b. Losses on securities trading, losses on futures transactions, marginal losses on additional trust, and marginal

losses on redemption

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(5) Investment Restrictions (A) Percentage of investment in investment trust securities There is no restriction as to the ratios of investment in investment trust securities. (B) Scope of investment trust securities to be invested in a. The investment trust securities that the management company may give instructions to invest in shall be those

issued by the issuers whose real estate investment trust securities are listed on Financial Instruments Exchanges, but this restriction shall not apply to the real estate investment trust securities acquired through allocation to investors.

b. Notwithstanding the provisions of item a above, the management company may give instructions to invest in any real estate investment trust securities that are scheduled to be listed or registered and with respect to which it is possible to confirm in a prospectus or any similar document that they are to be listed or registered.

(C) Restrictions on investment in assets denominated in foreign currencies As a general rule, no investment is made in the assets denominated in foreign currencies. (D) Instructions for and scope of loaning of securities (Article 26 of the Trust Deed) a. In order to facilitate efficient investment of the trust property, the management company may give instructions

to loan the securities belonging to the trust property with such a scope as prescribed in b below. b. As of the time of loaning, the aggregate market value of the securities loaned may not exceed fifty percent

(50%) of the aggregate market value of the securities held in the trust property. c. If the maximum limit prescribed in b above is exceeded, the management company shall promptly give

instructions to cancel those portions of loaning contracts which bear upon said excess. d. The management company, if finding it necessary to do so when loaning the securities, shall give instructions

to accept collateral. (E) Instructions for and scope of futures transactions The management company may give instructions to conduct securities index futures transactions (meaning the transactions as specified in Article 28, paragraph 8, item 3(b) of the FIX Act) at Financial Instruments Exchanges in Japan that are futures transactions investing in real estate investment trust indexes, and transactions similar to such transactions at Financial Instruments Exchanges in a Foreign State. (F) Instructions for and scope of instructions of borrowing of Public and Corporate Bonds a. In order to facilitate efficient investment of the trust property, the management company may give instructions

to borrow the Public and Corporate Bonds. The management company, if finding it necessary to do so when borrowing the Public and Corporate Bonds, shall give instructions to provide collateral. b. The scope of instructions described in a. above shall be such that market capitalisation of the Public and

Corporate Bonds pertaining to said borrowing is equal to or less than the aggregate amount of net assets of the trust property.

c. If, for the reason of conversion into cash or any other reason, market capitalisation of the Public and Corporate Bonds pertaining to said borrowing exceeds the aggregate amount of net assets of the trust property, the management company shall promptly give instructions to return part of the borrowed Public and Corporate Bonds upon said excess.

d. Interest on the borrowing described in a. above shall be paid out of the trust property. (G) Investment restrictions on derivative transactions The amount of derivative transactions as calculated by a reasonable method prescribed by the rules of the Investment Trusts Association, Japan will not exceed the total net asset value of the trust property. (H) Investment restrictions for hedging the concentration of the credit risk The ratio of stock exposure, bond exposure and derivative exposure to a person prescribed by the rules of the Investment Trusts Association, Japan to the Total Net Asset Value of the trust property will not, in principle, exceed ten-hundredths respectively, or twenty-hundredths in total, and if such ratio exceeds such rate, the management company shall make adjustments so that such ratio is within such rate in accordance with the rules of the Investment Trusts Association, Japan.

27

3. Investment Risk (1) Investment Risk The NAV of the Fund is affected by the fluctuations of the investment securities held by the Fund. All profits and losses arising from investment management of these trust asset investments belong to the investors. Accordingly, the principal amount of the Fund and profits arising from these investments are not guaranteed. Investors may incur a loss and the value of their investment principal may fall below par as the result of a decline in the NAV. Investment trusts are different from bank deposits. The Fund’s major risks are as follows: (A) Factors for fluctuations of NAV a. Risk of Investing in Real Estate Investment Trust Securities The Fund invests in real estate investment trust securities. The price of real estate investment trust securities fluctuates due to the conditions of the appraisal value, etc. of the owned real estate, changes in market interest rate, trends regarding real estate or stock market conditions and other factors. It may become difficult or even impossible to purchase or sell real estate investment trust securities if there is a decline in the liquidity of such securities due to rapid changes in markets or other events. In addition, real estate investment trust securities can be expected to be affected by risks associated with the management of such securities (such as delisting of such real estate investment trust securities). The performance of the Fund will be affected in the event of any such situation. b. Securities Lending Risk Lending of securities involves counterparty risks, which are the risks of contractual default by the counterparty due to its bankruptcy, etc., and the Fund may suffer losses. Securities lending involves the risk that the fund may lose money because the borrower of the loaned securities fails to return the securities in a timely manner or at all. The fund could also lose money in the event of a decline in the value of collateral provided for loaned securities. To mitigate these risks, the fund may benefit from a borrower default indemnity agreement signed with an affiliated BlackRock company. The indemnity allows for full replacement of the securities lent if the collateral received does not cover the value of the securities loaned in the event of a borrower default. (B) Points to remember about the index to which the Fund is linked a. Factors causing a gap between the Index and NAV

The Fund aims to cause its NAV to be highly linked to the movements of the Index but, primarily due to the presence of the following factors, the Fund is operationally unable to promise that its movements will coincide with those of the Index. When the trust property is being configured or when the portfolio is adjusted due to changes in the

constituent issues of the Index, trading of individual issues may be subject to a market impact and the Fund would need to bear the operating costs such as brokerage commissions.

Until such time as the portfolio is built, and as a result of processing distributions and rights arising from the issues held in the Fund, a certain amount of cash will accrue in the trust property.

When futures transactions are utilized, there will be a price differential between the futures price and the Index.

The Fund will need to pay trust fees and bear other costs and expenses. The Fund will be able to earn loan remuneration from loaning of securities.

b. Risk associated with the index While the Fund aims to seek performance linked to prices or return ratios published by the providers of benchmark indices, the accuracy of the composition or calculation of the indices by the index providers is not assured. While the index providers of indices generally disclose the constituent issues for their indices, calculation methods, etc., they do not assume liability for the quality, accuracy or completeness of data of the indices, nor do they warrant that their indices have been calculated in accordance with the disclosed calculation methods. The Fund aims to seek performance in consistency with the indices provided, and the management company does not indemnify for errors by the index providers, nor does it assume liability for such errors. The data may contain errors in its quality, accuracy or completeness, and such errors may remain undetected or uncorrected for a certain length of time. Profits or losses, or expenses in relation to the errors by the index providers will belong to the Fund and investors. For example, if any incorrect constituent issue is included in the index, while the Fund aiming to link the performance to the published index, for its part, would be expected to have market exposure to said constituent issue, market exposure to other constituent issues would be decreased. Hence an error in the index may exert a positive or negative impact on the past performance of the Fund.

28

If the index is rebalanced ad interim in order to correct an error in the constituent issues, and if the Fund’s portfolio is adjusted in association with said rebalancing, the Fund must bear the relevant transactional costs and market exposure that may arise from such portfolio adjustment. Unexpected rebalance would expose the Fund to the risk (tracking error risk) in which the return ratio of the Fund is not correctly linked to the return ratio of the index. Therefore, the index provider’s indexing error or ad interim rebalancing may cause the Fund’s costs and exposure risk to increase.

(C) Risks associated with the management of the Fund a. Suspension and cancellation of acceptance of application for creation and acceptance of request for redemption

The management company may, in the event of a trading suspension by a financial instrument exchange, of suspension of settlement functions, or of any other unavoidable circumstances, suspended accepting applications for the creation of Units and accepting requests for redemption at its discretion. In this case, the management company may cancel previously-accepted applications for the creation of Units or redemption requests for the Units.

b. Early redemption If any of the following events occurs, the Fund may, with concurrence from the trustee, terminate the trust. 1. When delisted from all Financial Instruments Exchanges on which the Units were listed; 2. When the Index is terminated; or 3. When the amendment to the Trust Deed associated with changes in the calculation method of the Index

or other changes is denied by a written resolution. The Fund may, when the number of the Units becomes less than 500,000 units as a result of redemption after the day that is three (3) years from the date of conclusion of the Trust Deed, or the Fund recognising that it is for the benefit of the investors, or in the event of an unavoidable circumstance, redeem the Fund even during the trust term.

c. Changes in laws or ordinances, tax system, accounting and other matters. Laws or ordinances, tax system, accounting and other matters may change in the future.

d. Points to remember about the Fund’s distributions In contrast to interest on bank deposits, distributions are from the net assets of the Fund. Hence, when distributions are paid out, the NAV would fall. The level of distribution does not necessarily indicate the ROI of the Fund.

(2) Risk Management Framework The management company places an emphasis on risk oversight, and risks are managed using its proprietary system. More specifically, Fund’s investment risk is measured and analyzed, and investment restrictions are monitored by an independent risk management department. This department confirms that the Fund’s investment risk profile meets the investment guideline, and gives feedback to investment teams and other relevant departments, with internal sharing of relevant results. Additionally, the management company’s operational risks are clearly defined in operational guidelines, and managed accordingly. *The risk management framework may be changed. (Reference Information) Comparison of the Fund with other representative asset classes in terms of percentage changes

(September 2013 to August 2018)

Annual percentage change and dividend-included NAV of the Fund

(September 2013 to August 2018)

29

* The above graph represents the annual average, maximum and

minimum percentage changes at the end of each month during the five years between September 2013 and August 2018 for the Fund and other representative asset classes. The percentage changes for the Fund are calculated on assumption that the amount of distribution before tax is reinvested and may differ from the annual percentage change calculated based on the actual NAV. Because the establishment date of the Fund is October 19, 2015, the percentage changes for the Fund are calculated based on the value of the benchmark and differ from the actual results of the Fund.

* Not every asset class may be the investment target of the Fund. * Index of each asset class

Japanese equity: ·················Tokyo Stock Price Index

(TOPIX Total Return) Developed country equity: ·····MSCI Kokusai Index

(Total Return, Yen based) Emerging country equity: ······MSCI Emerging Markets Index

(Total Return, Yen based) Japanese government bond: ···Nomura Bond Performance Index

Government Developed country bond: ······FTSE World Government Bond Index

(excluding Japan, Yen based) Emerging country bond:········J.P. Morgan Government Bond Index-

Emerging Markets Global Diversified Index (Yen based)

(Note) Foreign indexes are yen-based, assuming investments with no currency hedge.

* The above graph illustrates the amount and percentage changes of

dividend-included NAV as at each month-end of the year during a five-year period between September 2013 and August 2018. Because the annual percentage change shows the annual percentage changes of the benchmark, it is not the actual results of the Fund. The above graph illustrates the dividend-inclusive NAV for the period from the end of October 2015 to the end of August 2018.

* The dividend-included NAV is calculated on assumption that the amount of distribution before tax is reinvested and may differ from the actual NAV.

<Indexes> TOPIX (Total Return) is a benchmark calculated based on the total market capitalisation of all issues listed on the first section of the Tokyo Stock Exchange. TOPIX (Total Return) is an intellectual property of the Tokyo Stock Exchange, and all rights pertaining to this stock price index, including the index calculation and publication and use of the figures belong to the Tokyo Stock Exchange. The Tokyo Stock Exchange also holds the right to change the method of calculation or publication of TOPIX (Total Return), to terminate the method of calculation or publication of TOPIX (Total Return) or to change or terminate the use of trademark of TOPIX (Total Return). The MSCI Kokusai Index (Total Return, Yen based) and MSCI Emerging Markets Index (Total Return, Yen based) are benchmarks developed and calculated by MSCI Inc. The MSCI Kokusai Index (Total Return, Yen based) is an index which benchmarks the stock performance of developed countries of the world excluding Japan while the MSCI Emerging Markets Index (Total Return, Yen based) is an index which benchmarks the stock performance of emerging countries. The copyrights, intellectual property rights and all other rights concerning these indexes belong to MSCI Inc. In addition, MSCI Inc. holds the right to amend the content of each index and the right to terminate publication of these indexes. Nomura Bond Performance Index Government is an index published by Nomura Securities Co., Ltd. to measure the movements of Japanese government bonds and is calculated with the return on investment of a portfolio. The intellectual property right concerning this index belongs to Nomura Securities Co., Ltd. Note that Nomura Securities Co., Ltd. does not guarantee the accuracy, completeness, reliability and effectiveness of Nomura Bond Performance Index Government and bears no responsibility whatsoever on business activities and services implemented by BlackRock Japan Co., Ltd. using the index. The FTSEWorld Government Bond Index (excluding Japan, Yen based) is a bond index published by FTSE Fixed Income LLC for benchmarking the overall investment return on government bonds of the world’s major countries excluding Japan. The copyright, trademark right, intellectual property

47.8

65.057.1

37.2

9.3

29.121.4

-10.8 -22.0 -17.5

-27.4

-4.0 -12.3

-17.4

8.316.6 16.9

10.92.1 5.8 3.1

-40.0

-20.0

0.0

20.0

40.0

60.0

80.0（％）

Max Change % Min Change %

Average Change %

-40.0

-20.0

0.0

20.0

40.0

60.0

80.0

0

50,000

100,000

150,000

200,000

250,000

300,000

2013/09 2014/09 2015/09 2016/09 2017/09

Fund Annual Return (rightaxis)Benchmark Annual Return (right axis)NAV (with dividends reinvested; left axis) (％）(円）

30

right and all other rights concerning this index belong to FTSE Fixed Income LLC. The J.P. Morgan Government Bond Index-Emerging Markets Global Diversified Index (Yen based) is published by J.P. Morgan Securities LLC and is calculated to track local currency bonds issued by emerging market governments. The copyright concerning this index belongs to J.P. Morgan Securities LLC.

4. Fees and Commissions, and Taxes (1) Subscription Commission The Authorised Participants are entitled to collect subscription commission (including the consumption taxes thereon) as determined by it from the investors. For further details, please contact the Authorised Participants. For further details on the Authorised Participants, please contact the management company. Subscription commission is to be paid at the time of subscription in consideration of services such as explanation of instruments at the time of subscription and administrative procedures for subscription. (2) Redemption (Cancellation) Fee The Authorised Participants are entitled to collect a fee (including the consumption taxes thereon) as independently determined by it from the investor if said investor seeks to have the relevant unit redeemed or repurchased. For further details, please contact the Authorised Participants. For further details on the Authorised Participants, please contact the management company. Redemption (cancellation) fee is to be paid at the time of redemption in consideration of services such as administrative procedures for redemption or repurchase. (3) Trust Fee, etc. For each day of the calculation period, the trust fee shall be the amount obtained by multiplying the Total Net Asset Value of the trust property by a factor designated by the management company within of 0.1728% p.a. (0.16% p.a., excluding tax), and the allocations concerning the ratio of the trust fee and contents of services for which the trust fee described above is paid as consideration are as follows:

Allocation of Trust Fee Content of Services Management company

0.1458% p.a. (0.135%, excluding tax)

Fund management, calculation of the NAV, preparation of various documents, and other related services

Trustee company

For portions where the Total Net Asset Value is 200 billion or less

0.027% p.a. (0.025%, excluding tax)

Administration of investment assets, execution of instructions received from the management company, and other related services

For portions where the Total Net Asset Value is more than 200 billion and 800 billion or less

0.0243% p.a. (0.0225%, excluding tax)

For portions where the Total Net Asset Value is more than 800 billion

0.0216% p.a. (0.02%, excluding tax)

*Although expenses for real estate investment trust securities in which the Fund invests arise, the amount of such expenses is not shown as the price of such securities is settled based on the market demand and supply. The aggregate amount of the above-described trust fees are calculated daily and paid out of the Target ETF’s assets at the book close and at the termination of the trust. (4) Other Fees and Commissions (A) Taxes related to the trust property, costs and expenses required for processing trust administration, and interest on any advances made by the trustee company shall be borne by the investors, and shall be paid out of the trust property from time to time. (B) Any brokerage commission accruing at the time of trading of securities held in the trust property, consumption taxes on said brokerage commission, and costs and expenses required for futures transactions shall paid out of the trust property from time to time.

31

(C) Any audit costs and expensed related to the trust property and consumption taxes on said costs and expenses shall be paid out of the trust property at the end of each financial period or the time of termination of trust. (D) The following costs and expenses (the “Expenses”) shall be borne by the investors, and shall be paid out of the trust property:

1. expenses for listing; 2. fees for use of trademark of the Index

The management company may receive from the Fund the amount obtained by multiplying the daily Total Net Asset Value by the ratio calculated by reasonably estimating the amount of the above Expenses with the maximum ratio being 0.0486 p.a. (0.045%, excluding tax), or the amount calculated by reasonably estimating the amount of the above Expenses by deeming such amount to be the total payment amount of the Expenses The Expenses and the Amount equivalent to Consumption Taxes, etc. shall be paid out of the trust property at the end of each calculation period or the time of termination of trust. (E) If any securities lending is carried out, an amount of fees obtained by multiplying premium charges, which constitute the revenues of the Fund, by a factor no more than 50% will be paid by the Fund to a party to which the management services are delegated or the like from time to time. *Rates and maximum amounts of other expenses and fees are not shown in advance as they fluctuate with past performance and other factors. (5) Tax Treatment For tax purposes, the Fund is treated as a specified stock investment trust. (A) Taxation on individual investors a. At the time of sale of unit

In principle, the transaction is subject to self-assessed separate taxation where a tax rate of 20.315% (15.315% as income tax and 5% as local consumption tax) will be applied to capital gains on stock transfer. There is a special exception where the presence of a selective withholding account would make it unnecessary to declare a tax return.

b. At the time of receipt of distributions

In principle, the transaction is subject to withholding where a tax rate of 20.315% (15.315% as income tax and 5% as local consumption tax) will be applied at the time of receipt of distribution. It is possible to file an income tax return and choose between separate taxation and aggregate taxation (dividend deduction will not be applied).

c. Redeeming Units by exchanging Units and spot-trading securities If you intend to redeem Units by exchanging Units and spot-trading securities, please contact the Authorised Participants. For further details on the Authorised Participants, please contact the reference party.

d. Aggregation of capital losses on transfer and distributions By means of an income tax return, losses incurred at the time of sale and redemption (capital losses on stock transfer) can be aggregated with income from dividends on listed stocks and the amount of interest income from specific bonds (limited to distributions and dividends only if self-assessed separation taxation is chosen).

*You may use a Nippon Individual Savings Account (NISA). If you use a NISA, you will be offered exemption for a certain period of time from taxation on dividend income and capital gains arising from publicly-offered stock-type investment trusts and the like that have been newly purchased up to a certain amount each year. A person who satisfies certain requirements such as opening a tax-exempt account may use NISA. Please note that it is not possible to aggregate profit or loss resulting from dividend income or capital gains that arise in specified accounts or general accounts with those that arise in the NISA account. For further details on NISA, including the amounts and periods eligible for tax exemption, please contact your type I financial instrument business firm. (B) Taxation on corporate investors a. At the time of sale of unit

As in the case of ordinary sale of stocks, any difference between the acquisition value and sale price of Units will be subject to taxation in combination with other corporate income.

b. At the time of receipt of distributions

32

In principle, the transaction is subject to withholding where a tax rate of 15.315% (15.315% as income tax) will be applied at the time of receipt of distribution. The system of exclusion from gross revenue will not be applied to the Fund.

c. Redeeming Units by exchanging Units and spot-trading securities If you intend to redeem Units by exchanging Units and spot-trading securities, please contact the Authorised Participants. For further details on the Authorised Participants, please contact the reference party.

* Because the descriptions above are as of the end of August 2018, if tax laws amended, the tax ratio and other matters may be changed. We recommend that you confirm details regarding tax treatment with a tax professional.

33

5. Status of Investment (1) Investment Status

As of the end of August 2018

Types of assets Amount (yen) Investment ratio (%)

Stocks 151,066,818,420 98.59

Investment Securities 151,066,818,420 98.59

Call loans and other assets (after deduction of liabilities) 2,153,731,637 1.41

Total net asset value 153,220,550,057 100.00

(Note) The investment ratio means the current market price ratio of the relevant assets to the total net asset value. (2) Assets to be invested in (A) Major stocks to be invested in

Stocks Countr

y / Region

Type of business

Amount

Book value per Unit

(yen)

Book Value

Amount (yen)

Market value

per Unit (yen)

Unit (yen)

Amount (yen)

Investment ratio (%)

1 NIPPON BUILDING FUND REIT INC Japan

Investment

Securities 17,301 Unit (yen) 10,711,664,145 647,000.00 11,193,747,00

0 7.31

2

JAPAN REAL ESTATE

INVESTMENT TRUST

Japan Investme

nt Securities

17,866 577,077.45 10,310,065,819 591,000.00 10,558,806,000 6.89

3 NOMURA REAL

ESTATE MASTER FUND REI

Japan Investme

nt Securities

52,956 154,803.86 8,197,793,517 154,800.00 8,197,588,800 5.35

4 UNITED URBAN

INVESTMENT REIT CORP

Japan Investme

nt Securities

39,406 172,410.14 6,793,994,352 175,300.00 6,907,871,800 4.51

5 JAPAN RETAIL

FUND INVESTMENT REIT

Japan Investme

nt Securities

33,768 202,506.17 6,838,228,500 201,000.00 6,787,368,000 4.43

6 ORIX JREIT REIT INC Japan

Investment

Securities 35,599 173,898.77 6,190,622,405 173,400.00 6,172,866,600 4.03

7 DAIWA HOUSE REIT CORP Japan

Investment

Securities 22,368 269,346.75 6,024,748,123 257,600.00 5,761,996,800 3.76

8 NIPPON PROLOGIS REIT INC Japan

Investment

Securities 23,965 221,671.68 5,312,361,837 216,500.00 5,188,422,500 3.39

9 ADVANCE

RESIDENCE INVESTMENT REIT

Japan Investme

nt Securities

17,413 286,185.70 4,983,351,655 283,700.00 4,940,068,100 3.22

10 JAPAN PRIME

REALTY INVESTMENT REIT

Japan Investme

nt Securities

11,310 401,501.82 4,540,985,585 402,000.00 4,546,620,000 2.97

11 GLP J-REIT REIT Japan Investme

nt Securities

39,500 118,252.43 4,670,971,101 111,300.00 4,396,350,000 2.87

12 JAPAN HOTEL

INVESTMENT REIT CORP

Japan Investme

nt Securities

51,731 82,606.60 4,273,322,223 84,200.00 4,355,750,200 2.84

13 ACTIVIA

PROPERTIES REIT INC

Japan Investme

nt Securities

8,560 494,944.99 4,236,729,178 489,000.00 4,185,840,000 2.73

34

14 KENEDIX OFFICE

INVESTMENT REIT COR

Japan Investme

nt Securities

5,526 689,030.21 3,807,580,985 690,000.00 3,812,940,000 2.49

15 SEKISUI HOUSE REIT INC Japan

Investment

Securities 46,073 71,696.40 3,303,268,537 72,100.00 3,321,863,300 2.17

16 INVINCIBLE

INVESTMENT REIT CORP

Japan Investme

nt Securities

62,471 47,454.81 2,964,549,813 48,150.00 3,007,978,650 1.96

17 NIPPON

ACCOMMODATIONS FUND REIT IN

Japan Investme

nt Securities

5,931 523,890.18 3,107,192,672 505,000.00 2,995,155,000 1.95

18 MORI HILLS

INVESTMENT REIT CORP

Japan Investme

nt Securities

20,474 141,002.92 2,886,893,987 140,700.00 2,880,691,800 1.88

19 DAIWA OFFICE

INVESTMENT REIT CORP

Japan Investme

nt Securities

4,118 667,084.54 2,747,054,137 677,000.00 2,787,886,000 1.82

20 FRONTIER REAL

ESTATE INVESTMENT TR

Japan Investme

nt Securities

6,072 445,504.76 2,705,104,929 447,500.00 2,717,220,000 1.77

21 JAPAN LOGISTICS FUND REIT INC Japan

Investment

Securities 11,789 215,675.10 2,542,593,791 211,300.00 2,491,015,700 1.63

22 INDUSTRIAL &

INFRASTRUCTURE FUND I

Japan Investme

nt Securities

20,787 119,377.17 2,481,493,324 116,000.00 2,411,292,000 1.57

23 JAPAN EXCELLENT REIT INC Japan

Investment

Securities 15,975 144,011.56 2,300,584,830 145,000.00 2,316,375,000 1.51

24 AEON REIT

INVESTMENT REIT CORP

Japan Investme

nt Securities

18,308 119,897.94 2,195,091,486 119,500.00 2,187,806,000 1.43

25 HULIC REIT INC Japan Investme

nt Securities

12,908 169,764.92 2,191,325,596 163,300.00 2,107,876,400 1.38

26 MORI TRUST SOGO REIT INC TRUST Japan

Investment

Securities 12,792 160,415.21 2,052,031,454 162,300.00 2,076,141,600 1.36

27 NIPPON REIT

INVESTMENT REIT CORP

Japan Investme

nt Securities

5,777 344,545.66 1,990,440,308 356,000.00 2,056,612,000 1.34

28 PREMIER

INVESTMENT REIT CORP

Japan Investme

nt Securities

16,950 111,508.58 1,890,070,546 113,500.00 1,923,825,000 1.26

29 TOKYU REIT INC Japan Investme

nt Securities

11,950 153,496.80 1,834,286,791 153,800.00 1,837,910,000 1.20

30 KENEDIX

RESIDENTIAL NEXT INVESTMEN

Japan Investme

nt Securities

10,618 167,908.80 1,782,855,668 171,600.00 1,822,048,800 1.19

(Note) The investment ratio means the current market price ratio of the relevant assets to the total net asset value. b. Investment ratio by type of assets

As of the end of August 2018 Type of Assets Investment ratio (%)

Investment securities 98.59 (Note) The investment ratio means the current market price ratio of the relevant assets to the total net asset value. (2) Real estate property to be invested in Not applicable (3) Other material assets to be invested in

As of the end of August 2016

35

Type Region Exchange Name of assets Long/ short

Amount (number)

Book value (yen)

Current appraised value (yen)

Investment ratio (%)

Real estate investment index futures trading

Japan Osaka stock exchange

Tokyo Stock Exchange REIT Index

September 2018 Long 1,161 2,028,721,176 2,034,652,500 1.33

(Note 1) The investment ratio means the current market price ratio of the relevant assets to the total net asset value. (Note 2) The appraised value is based on the settlement price or final closing price published by the relevant stock

exchange on the nearest available day to the calculation date. (3) Past Performance (A) Changes in Net Assets As of the end of August 2018, the changes in the net assets as of the last day of each month within one year

immediately prior.

Specified period

End of calculation period

Total net asset value NAV

Market price (yen) Without distribution

(yen)

Without distribution

(yen)

Without distribution

(yen)

Without

distribution (yen)

1st specified

period

1st period (February 2016) 6,434,891,994 6,467,291,994 1,787.00 1,796.

00 1,795

2nd specified

period

2nd period (May 2016) 18,949,435,803 19,027,439,619 1,943.00 1,951.00 1,956

3rd period (August 2016) 33,384,449,663 33,564,458,233 1,854.60 1,864.

60 1,858

3rd specified

period

4th period (November 2016) 41,533,026,496 41,813,838,892 1,774.84 1,786.

84 1,748

5th period (February 2017) 47,633,694,106 48,051,367,226 1,824.73 1,840.

73 1,840

4th specified

period

6th period (May 2017) 53,315,063,141 53,730,927,121 1,794.84 1,808.84 1,799

7th period (August 2017) 57,202,622,479 57,702,268,534 1,717.29 1,732.

29 1,716

5th specified

period

8th period (November 2017) 56,583,320,384 57,135,584,368 1,639.31 1,655.

31 1,660

9th period (February 2018) 72,978,391,715 73,626,771,035 1,688.33 1,703.

33 1,695

6th specified

period

10th period (May 2018) 114,106,668,509 114,886,464,617 1,755.95 1,767.95 1,759

11th period (August 2018) 150,477,484,241 151,742,619,236 1,784.13 1,799.

13 1,786

As of the end of August 2017 58,144,240,145 － 1,714.64 － 1,715 As of the end of September 2017 56,490,355,394 － 1,688.06 － 1,693

As of the end of October 2017 57,262,209,348 － 1,666.22 － 1,678 As of the end of November 2017 57,845,923,985 － 1,697.71 － 1,705 As of the end of December 2017 61,133,149,470 － 1,697.06 － 1,702

As of the end of January 2017 76,122,023,035 － 1,785.85 － 1,780 As of the end of February 2017 78,647,054,945 － 1,735.14 － 1,736 As of the end of March 2017 88,075,443,245 － 1,726.09 － 1,726 As of the end of April 2017 113,188,933,860 － 1,770.44 － 1,772 As of the end of May 2017 128,530,136,843 － 1,769.58 － 1,772 As of the end of June 2017 139,906,423,223 － 1,806.61 － 1,806 As of the end of July 2017 148,237,201,060 － 1,815.69 － 1,814

As of the end of August 2017 153,220,550,057 － 1,794.31 － 1,796

36

(Note) The market price means the closing price on the Tokyo Stock Exchange as of the relevant day. However,

if no closing price for the relevant day is available, the closing price as of the nearest day is indicated. (B) Changes in Distributions

Specified period End of calculation period Distribution per Unit (yen)

1st specified period 1st period (February 2016) 9

2nd specified period 2nd period (May 2016) 8

3rd period (August 2016) 10

3rd specified period 4th period (November 2016) 12 5th period (February 2017) 16

4th specified period 6th period (May 2017) 14

7th period (August 2017) 15

5th specified period 8th period (November 2017) 16 9th period (February 2018) 15

6th specified period 10th period (May 2018) 12

11th period (August 2018) 15

(C) Changes in Rates of Return

Specified period End of calculation period Changes in rate of

return of NAV Rate of return (%)

Changes in rate of return of market price

Rate of return (%)

1st specified period 1st period (February 2016) 5.7 5.7

2nd specified period 2nd period (May 2016) 9.2 9

3rd period (August 2016) △4.0 △5.0

3rd specified period 4th period (November 2016) △3.7 △5.9 5th period (February 2017) 3.7 5.3

4th specified period 6th period (May 2017) △0.9 △2.2

7th period (August 2017) △3.5 △4.6

5th specified period 8th period (November 2017) △3.6 △3.3 9th period (February 2018) 3.9 2.1

6th specified period 10th period (May 2018) 4.7 3.8

11th period (August 2018) 2.5 1.5 (Note 1) The figure stated for rate of return of NAV for the 1st calculation period is equal to the NAV per unit

(with distribution) as of August 9, 2016 less the NAV per unit at the time of creation (creation date: October 19, 2015) divided by the NAV per unit, and multiplied by 100.

(Note 2) The figure stated for rate of return of market price for the 1st calculation period is equal to the market price as of August 9, 2016 less the market price at the time of creation (creation date: October 19, 2015) divided by the market price at the time of creation, and multiplied by 100.

(4) Records of Creation and Cancellation

Specified period End of calculation period Number of units created Number of units cancelled

1st specified period 1st period (February 2016) 3,600,000 －

2nd specified period 2nd period (May 2016) 6,300,000 149,523

3rd period (August 2016) 8,400,000 149,620

37

3rd specified period 4th period (November 2016) 5,550,000 149,824 5th period (February 2017) 4,050,000 1,346,463

4th specified period 6th period (May 2017) 3,600,000 －

7th period (August 2017) 6,150,000 2,544,833

5th specified period 8th period (November 2017) 4,350,000 3,143,238 9th period (February 2018) 12,300,000 3,591,211

6th specified period 10th period (May 2018) 24,750,000 2,992,279

11th period (August 2018) 23,400,000 4,040,676 (Reference Information) Status of Investment (as of August 31, 2018) Changes in NAV and Net Assets

* The NAV figures are those after deduction of the trust fee. For the trust fee, please refer to “Expenses of Fund” below. The benchmark figures shown are multiplied by 100. Changes in Distributions

Cumulative total since creation 14,200 yen FY7 August 2017 1,500 yen FY8 November 2017 1,600 yen FY9 Febuary 2018 1,500 yen FY10 May 2018 1,200 yen FY11 August 2018 1,500 yen

*Distributions are the amount per 100 units before tax. Status of major assets Top 10 stocks incorporated (%)

0

500

1,000

1,500

2,000

2,500

0

50,000

100,000

150,000

200,000

250,000

2015/10 2016/01 2016/04 2016/07 2016/10 2017/01 2017/04 2017/07 2017/09 2017/12 2018/03 2018/06

Total net assets (right axis)

NAV (without distributions;

left axis)Benchmark (left axis)

(yen）(100 mil Yen)

38

Name of stocks Ratio 1 NIPPON BUILDING FUND REIT INC 7.3 2 JAPAN REAL ESTATE INVESTMENT TRUST 6.9 3 NOMURA REAL ESTATE MASTER FUND REI 5.4 4 UNITED URBAN INVESTMENT REIT CORP 4.5 5 JAPAN RETAIL FUND INVESTMENT REIT 4.4 6 ORIX JREIT REIT INC 4.0 7 DAIWA HOUSE REIT CORP 3.8 8 NIPPON PROLOGIS REIT INC 3.4 9 ADVANCE RESIDENCE INVESTMENT REIT 3.2

10 JAPAN PRIME REALTY INVESTMENT REIT 3.0 Changes in Annual Rates of Return * The rates of return of the Fund are calculated based on the NAV (without distribution). * The rates for the period from 2008 to 2017 shows the annual rates of return. * In 2015, the rate of return shows the rate from the creation date (October 19) to the end of the same year, and the benchmark shows the rates from the beginning to the end of each year.

* Past performance, data, etc. are those as of the preparation date, or past performance, data, etc., and do not guarantee future results. * Benchmarks are provided for reference purposes only, and do not represent the Fund’s performance results. * The status of investment by the Fund is separately disclosed on the website of the management company.

3.7% 7.3%

-10.2%

-51.8%

-0.8%

26.6%

-26.2%

33.6% 35.9%

25.3%

-7.9%

6.2%

-10.4%

-60%

-40%

-20%

0%

20%

40%

60%

FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Fund Benchmark

39

Section 2. Management and operation 1. Application (sales) procedure (A) Offering of creation to Units is conducted on each business day throughout the creation application period with a Units creation application accepted by an Authorised Participant. Any inquiry on such Authorised Participants should be made to the following inquiry contact point: BlackRock Japan Co., Ltd. Telephone number: 03-6703-4110 (service hours: 9:00 to 17:00) Official corporate website: http://www.blackrock.com/jp/ (B) The management company shall provide, on a business day immediately preceding the applicant’s creation

application date, the Authorised Participants with a PCF (Portfolio Composition File) showing the Index ETF Constituent Securities and values that are specified by the management company as the securities required for the applicant to create the number of units equivalent to that of one creation unit.

(C) The Authorised Participants, being allowed to serve as intermediary for the applicant’s application to create Units, shall present the relevant PCF to the investor for which the former serves as creation application intermediary. (D) Acceptance of application for creation of Units The management company shall, no later than 3:00 p.m. of the date of the applicant’s creation application, accept the latter’s application to create Units in integer multiples of one creation unit in exchange for the Index ETF Constituent Securities subject to creation application and cash that are specified by the management company. (E) Application price of Units

The price of the applicant’s application to create Units shall be the net asset value per unit as of the date of creation application. The Authorised Participants may collect from the applicant relevant application fee (including consumption taxes and equivalents), which shall be received by the Authorised Participants.

(F) Notwithstanding the provision of section (D), the management company may not accept any Units creation application on the dates and periods set forth in item 1 through item 8 that are shown below. In such event, the applicant shall be not provided with a PCF by the management company:

9) For a period of two business days, beginning two business days prior to the fund’s account close dates (or, if the account close date falls on a holiday, for a period of three business days, beginning three business days prior to the account close date)

10) In the event that management company determines the Fund cannot be managed according to the Fund’s investment policies provided in the Trust Deed due to unavoidable circumstances.

11) For a period of three business days, beginning one business day prior to the ex-distribution or ex-rights day of any Index ETF Constituent Securities.

12) For a period of three business days, beginning one business day prior to the rebalance day for the Index ETF Constituent Securities, or the day the index component ratios of constituent issues are changed.

13) For a period, beginning one business day prior to the delisting day (due to the consolidation and split of any Index ETF Constituent Securities) and ending one business day after the Index inclusion day for new shares (due to such consolidation and split).

14) On any day on which trading of the Index ETF Constituent Securities is suspended. 15) For a period of five business days prior to the date of trust termination, if the Fund terminates. 8) Any event other than in 1) through 7) above in which the management company determines the Fund’s

operations may be undermined due to unavoidable circumstances.

(G) Notwithstanding the provision of section (F), the management company may, in the event of a trading suspension by financial instrument exchange, of suspension of settlement functions, or of any other unavoidable circumstances, either suspend accepting applications for the creation of Units or cancel previously-accepted creation applications, or alternatively, take both steps. (H) The Authorised Participants and the investor may not cancel the application after the creation application

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is accepted by the management company. (I) The Authorised Participants shall deliver to the trustee company the securities and cash required for the creation application concerned no later than the fourth business day from the date on which the creation application is made (“Delivery Deadline”). (J) If the valuation amount of the securities the Authorised Participants intend to deliver to the trustee company exceeds the value of the Units representing integer multiples of creation application-related one creation unit, the management company shall adjust the creation unit. (K) The management company shall deliver Units to the Authorised Participants or to the investor through the Authorised Participants after confirming that the trustee company has received the delivery of securities as provided for in section (I). (L) If the Authorised Participants determine that it will be difficult for the Authorised Participants or the applicants in Units to deliver by the Delivery Deadline all or any part of the stocks or cash to be delivered that constitute the creation unit as at the time of creation (such delivery, the “Whole or Partial Delivery”), the Authorised Participants shall immediately notify the management company or the trustee company to such effect.

(M) If the management company, based on the notification in section (L), determines that Whole or Partial Delivery will not be possible within the period prescribed by the management company as a period in which there is no likelihood of hindrance being caused to operations that are in line with the “Basic Investment Policy” prescribed in the Trust Deed, creation applications for or redemptions of trust units, or any other operations of the trust, the management company may cancel creation applications that have already been received from Authorized Participants or applicants.

(N) In the case of section (M), if any damage arises to the trust property or otherwise due to the Whole or Partial Delivery not being possible, the Authorized Participants will bear all liability in respect thereof. 2. Realisation (redemption) procedure (A) Partial redemption of trust units During the course of the trust period, the investor may not request a partial redemption of trust units with regard to the Units it holds. (B) Redemption of Units by exchanging unit and securities included in trust assets a. The Authorised Participants and an investor requesting the redemption of more than a certain number of Units (hereafter the “Units Redemption Requester”) may request the management company or the Authorised Participants to redeem, no later than 3:00 p.m. on a redemption request acceptance date, the relevant Units for book entry transfer in integral multiples of one creation unit, for securities equivalent in value to the Units concerned, among securities included in the trust assets. b. The management company shall present a PCF to the Authorised Participants on a business day immediately preceding a Units redemption request acceptance date. c. The Authorised Participants shall present a PCF to the Units Redemption Requester by serving as a redemption request intermediary. d. The management company may not accept any Units redemption request on the dates and periods set forth in item 1 through item 8 that are shown below. In such event, the Units Redemption Requester shall be not presented with a PCF by the management company:

1. For a period of two business days, beginning two business days prior to the fund’s account close dates (or, if the account close date falls on a holiday, for a period of three business days, beginning three business days prior to the account close date)

2. In the event that management company determines the Fund cannot be managed according to the Fund’s investment policies provided in the Trust Deed due to unavoidable circumstances.

3. For a period of three business days, beginning one business day prior to the ex-distribution or ex-rights day of any Index ETF Constituent Securities.

4. For a period of three business days, beginning one business day prior to the rebalance day for the Index ETF

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Constituent Securities, or the day the index component ratios of constituent issues are changed. 5. For a period, beginning one business day prior to the delisting day (due to the consolidation and split of any

Index ETF Constituent Securities) and ending one business day after the Index inclusion day for new shares (due to such consolidation and split).

6. On any day on which trading of the Index ETF Constituent Securities is suspended. 7. For a period of five business days prior to the date of trust termination, if the Fund terminates. 8. Any event other than in 1 through 7 above in which the management company determines the Fund’s

operations may be undermined due to unavoidable circumstances.

e. The price of Units at the time of redemption shall be the net asset value per unit as of the date of the redemption request being accepted. For the calculation method and frequency of such net asset value per unit, please see the section titled “3. Management and operation, 3. An outline of our asset management, (1) Valuation of assets.” The Authorised Participants may collect from the Units Redemption Requester relevant intermediary service fee that is specified individually (including consumption taxes and equivalents). f. If the valuation amount of the securities the management company intends to redeem exceeds the value of the Units representing integral multiples of redemption request-related one creation unit, the management company shall adjust the creation unit. g. In the event of a trading suspension by financial instrument exchange, of suspension of settlement functions, or of any other unavoidable circumstances, or when the Investment Manger deems it to be necessary, it may either suspend accepting Units redemption requests or cancel previously-accepted Units redemption requests, or alternatively, take both steps. h. If the management company has suspended accepting Units redemption request pursuant to the provision of item (g), it shall deem that the price of the Units redemption for which request was accepted by itself prior to the acceptance suspension, and for which no acceptance cancellation is made by the management company, was calculated pursuant to the provision of item (e), as if the redemption request was accepted by the management company on the first per-unit net asset value calculation date after the redemption request acceptance suspension is lifted. i. The Authorised Participants and the Units requester may not cancel the redemption request after the redemption request is accepted by the management company. j. The Authorised Participants and the Units Redemption Requester shall apply to the book entry transfer institution for the annulment of the book entry transfer Units involved in the redemption concerned no later than the deadline specified by the management company. If the application for the annulment of the book entry transfer Units, made for the purpose of the redemption, is confirmed to have been accepted by the book entry transfer institution, the trustee company shall, according to the management company’s instruction, request the book entry transfer institution to implement the book entry transfer of the securities subject to the redemption by the method specified by the book entry transfer institution. The delivery of the securities included in the trust assets shall be made to the Authorised Participants or the Units Redemption Requester starting from the fourth business day after the date on which the redemption request is accepted. k. If the Authorized Participants determine that it will be difficult for the application that is to be made by the Authorized Participants or the Units Redemption Requester for the annulment of all or any part of the book entry transfer Units to be accepted by the deadline designated by the management company, the Authorized Participants shall immediately notify the management company and the trustee company to such effect. l. If the management company, based on the notification in item k., determines that annulment of all or any part of the book entry transfer Units will not be able to be accepted by the book entry transfer institution within the period prescribed by the management company as a period in which there is no likelihood of hindrance being caused to operations that are in line with the “Basic Investment Policy” prescribed in the Trust Deed, creation applications for or redemptions of trust units, or any other operations of the trust, the management company may cancel redemption requests that have already been received from Authorized Participants or the Units Redemption Requesters. m. In the case of item l., if any damage arises to the trust property or otherwise due to the annulment of the book entry transfer Units not being possible, the Authorized Participants will bear all liability in respect thereof.

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n. After confirming the completion of the annulment from the book entry transfer account of the book entry transfer Units that are to be annulled by the Authorized Participants or the Units Redemption Requester, the management company shall deliver shares to the Authorized Participants or to the Units Redemption Requester via the Authorized Participants. o. The management company shall deem to have been expired Units equal in number to the book entry transfer Units to be annulled due to redemption on or after the business day immediately following the date of redemption request, and the trustee company shall confirm that the book entry transfer Units related to the Units concerned were annulled on the date on which the book entry transfer of the securities to be transferred. (C) Purchase of Units (purchase request system) a. The Authorised Participants shall purchase from the investor its Units as the application accepted before 3:00 pm of the date of acceptance of purchase request being considered to be the application made on that date if requested by the investor in the event of any of the following circumstances; provided, however, that a purchase request to be made in the circumstance mentioned in item “2” shall be made at least two business days prior to the date of trust termination:

1. Book entry transfer Units less than the minimum number of financial instrument exchange trading units that has occurred due to an exchange conducted; 2. The Units have been delisted from all exchanges on which they had previously been listed.

b. The applicable purchase price shall be the net asset value per unit as of the date on which the purchase request is accepted. c. The Authorised Participants may, when purchasing Units, collect fee obtained by multiplying the applicable per-unit net asset value by a rate specified separately by itself as well as an amount equivalent to consumption tax on such fee. d. In the event of a trading suspension by financial instrument exchange, of suspension of settlement functions, or any other unavoidable circumstances, the Authorised Participants may suspend the purchase of Units and cancel the purchase of Units that has been already accepted, based on consultation with the management company. e. In the event of a suspension of the purchase of Units, the investor may cancel its Units purchase request for a given day that was made prior to the purchase suspension; provided, however, that, in the event of the investor not cancelling its Units purchase request, the purchase price of the Units concerned shall be deemed to have been calculated according to the aforesaid procedure as if the purchase request was accepted on the first calculation date of net asset value per unit after the purchase suspension is lifted. (D) Redemption at the time of trust termination a. The management company shall, if the trust concerned is to terminate, deliver to an investor holding Units in integer multiples of one creation unit, book entry transfer Units stated or recorded in the book entry transfer account register with securities equivalent to the portion of the trust assets held under the Units concerned as the applicable Units, or alternatively deliver to the unitholder a unit certificate representing the Units concerned, in exchange for the Units held by the unitholder concerned. b. Offices of the Authorised Participant may process the redemption provided in Item a.

c. The value of the Units in respect of redemption provided in Item a. shall be the NAV on five (5) business days prior to the date of trust termination. In this case, the number of the specific issue of securities acquired by the investors through the redemption shall be the number of securities in integral multiples of the exchange trading unit calculated based on the value of such securities on five (5) business days prior to the date of trust termination.

d. Upon the redemption provided in Item a. the Authorised Participants may charge to the investors the amount corresponding to the commission set by the Authorised Participants and the consumption tax, etc. on the commission.

e. The redemption of securities provided in Item a. shall, as a general rule, be performed starting from the third business day from the business day immediately after the day on which the trustee confirms that the application

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for the annulment of the Book-Entry Units for the redemption is accepted by the book-entry institution.

f. The management company shall treat the Units (including those repurchased by the trust property pursuant to Item e.) in the same number of units of the Book-Entry Units to be annulled as a result of the redemption as being invalidated, and the management company confirms that the Book-Entry Units relating to such Units have been annulled on the transfer date of the securities subject to the redemption.

g. Notwithstanding the provisions of Items a and c, in the case of any of the following events, the Authorised Participant specified by the management company in respect of the termination of this trust shall, as a general rule, repurchase any of the following based on the value of the Units at the time of the termination of the trust:

1. In the case of Item a., Book-Entry Units in the number of units remaining after deducting the number of units necessary for the redemption of securities from the number of units held by the investors; and

2. Book-Entry Units of less than one (1) Creation Unit provided in Item a. (including Book-Entry Units of less than one (1) exchange trading unit).

h. The Authorised Participants provided in Item g may, upon the repurchase pursuant to Item i, charge the amount corresponding to the commission specified individually by the Authorised Participants and consumption tax on the commission. 3. An outline of asset management (1) Valuation of assets <NAV> The net asset value per unit (the “NAV”) refers to an amount determined by dividing by the number of Units outstanding as of the calculation date, an amount obtained by subtracting the trust’s total debt from the total outstanding trust assets (excluding securities pledged as margin collateral and loaned securities) that are identified based on a mark-to-market valuation performed pursuant to laws and the regulations of the Investment Trusts Association, Japan (the “Total Net Asset Value”). The NAV changes daily due to the price fluctuations of securities held in the portfolio. The net asset value per unit is made available by making inquiry to the relevant Authorised Participants or calling the management company. In this Fund, the Net Asset Value per Unit is indicated on a per 100 Unit basis. BlackRock Japan Co., Ltd. Telephone number: 03-6703-4110 (service hours: 9:00 to 17:00) Official corporate website: http://www.blackrock.com/jp/ <Method for the valuation of securities> Real estate investment trust securities: Real estate investment trust securities are valued in principle at the closing prices recorded at financial instrument exchanges on the day on which net asset value calculation is made.

(2) Storage Not applicable (3) Trust period The trust period of the Fund shall be indefinite; provided, however, that if any of the Fund’s premature redemption clauses applies, the management company may terminate the Trust Deed and close the trust. (4) Financial period The Fund’s financial period shall in principle be the period from February 10 to May 9 of each year, from May 10 to August 9 of each year, from August 10 to November 9 of each year, and from November 10 of each year to February 9 of the following year; provided, however, that the first financial period shall be the period from the date of conclusion of the Trust Deed to February 9, 2016, and the last day of the final accounting period shall be the date on which the trust period ends as provided for in section (3) above titled “Trust period.” (5) Others

(A) Termination of Trust Deed a. In the event that the number of the Units becomes less than 500,000 units after the day that is three (3) years from the date of conclusion of the Trust Deed, the management company deeming closing the trust to be in

44

the interest of the unitholder, or of any unavoidable circumstance occurring during the trust term, the management company may terminate the Trust Deed and close the trust upon reaching agreement with the trustee company. In that case, the management company shall notify, in advance, the regulatory authority of its intention to terminate the Trust Deed. b. In the event of any of the following events occurring, the management company shall terminate the Trust Deed and close the trust upon reaching agreement with the trustee company. In such event, the management company shall notify, in advance, the regulatory authority of its intention to terminate the Trust Deed.

1. When delisted from all Financial Instruments Exchanges on which the Units s were listed; 2. When the Index is terminated; or 3. When the amendment to the Trust Deed associated with changes in the calculation method of the Index

or other changes is denied by a written resolution. If the Trust Deed is terminated for reasons provided in Item 1 above, the procedures for termination of this trust shall be commenced on such delisting date. c. With regard to the circumstances mentioned in item “a”, the management company will make a resolution in writing (the “written resolution”). In that case, the management company will determine in advance the date of the written resolution, the reason for redemption of the Fund and other related matters and will give a notice in writing of the written resolution stating those matters to known investors relating to the Trust Deed at least two (2) weeks before the date of the resolution. d. In making the written resolution provided for in item “c”, investors (excluding the management company as investor with respect to the unit in this trust when such unit belongs to the management company and trust property of this trust; the same applies hereinafter in this item “d”) have voting rights corresponding to the number of units held and are entitled to exercise such rights. If any known investors do not exercise their voting rights, such known investors will be deemed to be in favor of the written resolution. e. The written resolution provided for in item “c” will be voted on by a majority of the investors who are entitled to exercise voting rights and will be passed by two-thirds or more of the voting rights held by such investors. f. The provisions of items “c” through “e” will not apply when all investors with respect to the Trust Deed express, in writing or by electromagnetic record, their intention to consent to the management company’s proposal for redemption of the Fund. Additionally, in light of the state of the trust property, the provisions shall not apply, if a truly unavoidable circumstance arises and there is difficulty in taking measures set out in items “c” through “e”. g. The regulatory authority’s order relating to the Trust Deed In the event of the management company being ordered by the regulatory authority to terminate the Trust Deed and close the trust pursuant to the order. h. The procedure to be taken in response to an annulment of the management company’s registration In the event that the registration of the management company is annulled by the regulatory authority, the management company is dissolved, or its operations are abolished, the management company shall terminate the Trust Deed and close the trust; provided, however, that, if the regulatory authority has ordered the management company to hand over its operations related to the Trust Deed concerned to other investment trust management company, the trust concerned shall continue to exist between the investment trust management company and the trustee company with the exception of cases where a written resolution mentioned in item “d” of section (B) titled “Amendment of the Trust Deed” is denied. i. The procedure to be taken in response to the resignation or dismissal of the trustee company a. The trustee company may resign from its duties by obtaining consent of the management company. In the event of the trustee company failing to perform its duties, or of any other significant circumstance, the management company or the trustee company may file a petition to the court requesting the dismissal of the trustee company. b. In the event that the trustee company resigns from its duties by obtaining consent of the management company, or it is dismissed by the court, and that the management company is unable to appoint a new trustee company, it shall terminate the Trust Deed concerned and close the trust.

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(B) Amendment of the Trust Deed a. The management company may amend the Trust Deed or merge this trust with another trust (which means the “merger of investment trusts with instruction by the management company” defined in Item 2 of Article 16 of the Act Concerning Investment Trusts and Investment Companies; the same applies hereinafter) upon reaching agreement with the trustee company if doing so is deemed by the former to be necessary for the benefit of investors, or if any unavoidable circumstance has occurred. The management company shall, prior to doing so, notify the regulatory authority to that effect and of details of the amendment of the trust agreement or the merger. The Trust Deed may not be amended in any way other than the way provided below. b. With respect to matters mentioned in item “a” (including cases where the contents are material in cases of amendment and excluding cases where the merger has a minor effect on the interests of the unitholders; collectively, “material amendment to the Trust Deed, etc.”), the management company will make resolutions in writing. In such case, the management company will determine in advance the date of the written resolution, the details of and reason for the material amendment to the Trust Deed etc. and other related matters and will give a notice in writing of the written resolution stating those matters to the known investors relating to the Trust Deed at least two (2) weeks before the date of the resolution. c. In making the written resolution provided for in item “b”, investors (excluding the management company as investor with respect to the unit in this trust when such unit belongs to the management company and trust property of this trust; the same applies hereinafter in this item) have voting rights corresponding to the number of units held and are entitled to exercise such rights. If any known investors do not exercise their voting rights, such known investors will be deemed to be in favor of the written resolution. d. The written resolution provided for in item “b” will be passed by two-thirds or more of the voting rights held by the investors who are entitled to exercise voting rights. e. A written resolution will take effect on all investors of this trust. f. The provisions of items “b” through “e” will not apply when all investors with respect to the Trust Deed express, in writing or by electromagnetic record, their intention to consent to the management company’s proposal for material amendment to the Trust Deed, etc. g. Notwithstanding the provisions of the preceding paragraphs, even if a written resolution for a merger is passed on this trust, this trust cannot be merged with other trusts if a written resolution for the merger is rejected at one or more of such other trusts. h. The management company shall comply with the provisions set out in items “a” through “f” upon amendment to the Trust Deed as ordered by the regulatory authority. (C) Purchase request right of objector In cases where the management company terminates the Trust Deed or makes a material amendment to the Trust Deed, etc., any investor having lodged an objection to such termination or material amendment to the Trust Deed, etc. in a written resolution may request the trustee company to use the trust assets to purchase the Units belonging to the unitholder. The details of the right to redemption and matters relating to procedures for redemption claim will be noted in the section titled “(A) Termination of Trust Deed, item c or (B) Change to the terms and conditions of the Trust Deed, b.” (D) Public notice Public announcements made by the management company to the investors will be posted on the website shown below by means of electronic notice. www.blackrock.com/jp/ However, if public announcements by such means cannot be made, public announcements will be published in Nihon Keizai Shimbun. (E) Renewal of agreement with related company The effective term of the “Securities Investment Trust Deed” between an entity and the trustee company is a period until the date on which the trust stipulated in the terms and conditions of the Trust Deed terminates;

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provided, however, that, if necessary, part of the agreement may be changed during the effective term of the agreement. The “Authorised Participant Agreement” may be cancelled without prior notification or notice if any of the events set out in such agreement occurs with respect to the Authorised Participant or the management company. Since the effective term of the “delegation agreement for securities lending instructions in respect of trust assets” has not been specified in particular, one party to such agreement may terminate the agreement at any time by giving a prior written notice to the other party (in case of a securities lending agent, a 30-day prior written notice is required). (F) Reentrustment of trust administrative and clerical operations The trustee company has entered into a reentrustment agreement with The Master Trust Bank of Japan, Ltd., under which the former has entrusted part of its trust administrative and clerical operations to the latter. (G) Preparation of management report The Fund will not prepare or deliver any management reports. 4. Rights of unitholders Shown below are the principal rights held by investors (unitholders): (A) The right to request profit distribution payment and the registration of name a. Profit distribution shall be paid to a unitholder whose personal name or entity name and address are registered with the trustee company as of the last day of a given calculation period (a “Registered Unitholder”) as a recipient of profit distribution as of the last day of such calculation period. In that event, even if the Registered Unitholder differs from a Unitholder as of the last day of the financial period concerned, the management company and the trustee company shall neither be under the obligation to pay profit distribution to such Unitholder, nor be held responsible for any damage caused to the Unitholder concerned.

*The management company shall prepare the register of unitholders in relation to this trust, and register the personal name or entity name, address and other matters designated by the management company in the register of unitholders with respect to the investors. The management company shall register the personal name or entity name and address, and other matters designated by the management company of the person to which the Units belong and who receives notice from the Book-entry Institution pursuant to the relevant laws and ordinances such as the Book-Entry Transfer Law and other various regulations as the investors of the Units stated or recorded on the book-entry account of the Book-entry Institution. The management company may execute a delegation agreement with the person determined by the management company to be appropriate such as other securities agent companies, and delegate such person to prepare the register of unitholders and make the registration in the register of unitholders.

b. An investor shall in principle conduct such registration as is provided for in item “a” by way of a member of the financial instrument exchange on which the Units of the trust concerned are listed (such exchange members are limited to account management institutions; the same hereinafter). In such event, the exchange member may collect commission stipulated by the former and an amount equivalent to consumption tax on the commission; provided, however, that securities finance companies, etc. may conduct such registration as is provided for in item “a” with the trustee company directly on its own (or, if the trustee company has delegated the preparation of the register of unitholders as provided for in item a., with such delegated person). c. The registration shall be suspended for a period of fifteen (15) days from the day immediately following the last day of every calculation. If the Fund terminates, the registration shall be suspended for a period of five (5) business days immediately prior to the date of trust termination. d. The name registration procedure for the Units stated or recorded in the book transfer account register of book transfer institution pursuant to the Book-Entry Transfer Law and other applicable laws and regulations shall be governed by provisions prescribed separately. e. The payment of profit distribution shall in principle be made from the day specified by the management company, which falls within forty (40) days from the completion of every accounting period, by depositing the income distribution payment in the deposit account, etc. specified in advance by the Registered Unitholder. If the Registered Unitholder separately executes an agreement regarding handling of the profit distribution with a

47

member provided in item “b”, the profit distribution shall be paid pursuant to such agreement. f. The trustee may delegate the person delegated to prepare the register of unitholders to pay profit distribution.

g. The trustee shall, if holding an unpaid balance of profit distributions after the passage of five years from the payment commencement date, deliver the amount concerned to the management company. h. The trustee shall, subsequent to delivering profit distribution to the management company as set forth in item “g” above, be under no obligation to pay the profit distribution to the investors related to such delivery. i. Any investor not requesting the payment of profit distribution for a period of five years from the applicable payment commencement date shall forfeit its right to the profit distribution, and any money received by the management company from the trustee company shall belong to the management company. (B) Right to redeem Units for securities belonging to the trust assets An investor may request a redemption of a certain number or more of its Units for securities equivalent to its interest that belong the trust assets. (C) Right to request the purchase of Units In the event that the total number of Units held by an investor falls short of minimum Units trading unit prescribed by financial instrument exchange, the investor may request the Authorised Participants to purchase such Units from the former. (D) Right to request the redemption and right to request the purchase upon trust termination Upon the termination of the trust, an investor has the right to request the redemption and the right to request the purchase in proportion to its interest. If the investor fails to request delivery of securities and money subject to redemption upon the trust termination for a period of 10 years from the date of trust termination, or to request delivery of purchase price for a period of 10 years from the payment commencement date, it shall forfeit its relevant rights. (E) Right to request to inspect or copy books and documents The investor may make a request to the management company to inspect or copy books and documents relating to the trust property of the Fund within the business hours of the management company.

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Section 3. Status of Accounting of the Fund (1) The financial statements of this Fund have been prepared in accordance with the Ordinance on Terminology, Forms and Preparation Methods of Financial Statements, etc. (Ministry of Finance Ordinance No.59 of 1963) and the Ordinance on Accountings of Investment Trust Property (Ordinance of the Prime Minister’s Office No. 133 of 2000) as required under the provisions of Article 2-2 of the said Ordinance on Terminology, Forms and Preparation Methods of Financial Statements, etc. The amounts contained in the financial statements are presented in yen. (2) Since the calculation period of the Fund is less than 6 months, financial statements are prepared every 6 months. (3) Pursuant to the provisions of Article 193-2, paragraph (1) of the Financial Instruments and Exchange Act, the Fund has undertaken an audit of financial statements for this specified period (from February 10, 2018 to August 9, 2018) by PricewaterhouseCoopers Aarata.

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1. Financial Statements

iShares Core Japan REIT ETF (1) Balance Sheet (Unit: yen)

End of the previous specified period End of the specified period

(as of August 9, 2018) (as of February 9, 2018)

Assets

Current assets

Money trust 133322948 569,618,789

Investment securities 72,188,746,500 148,660,583,850

Derivative evaluation account 3,084,572 11,548,972

Accounts receivable 669,711,426 1,262,038,062

Accrued dividend receivable 670,983,219 1,300,746,800

Customers’ margin 11,766,000 29,859,500

Total current assets 73,677,614,665 151,834,395,973

Total assets 73,677,614,665 151,834,395,973

Liabilities

Current liabilities

Derivative evaluation account 11524184 9,381,664

Advanced Receivables 4,502,100 8,186,200

Unpaid dividends 648,379,320 1,265,134,995

Trustee fee payable 4,299,885 9,324,442

Investment trust management fee payable 23,219,444 50,352,106

Other accrued expenses 7,298,017 14,532,325

Total current liabilities 699,222,950 1,356,911,732

Total liabilities 699,222,950 1,356,911,732

Net assets

Principal and other

Principal 73,439,764,312 143,297,623,767

Surplus

Surplus (deficit) at the end of the period △461,372,597 7,179,860,474

(Reserve for distribution) 29,968,171 29,118,205

Total principal and other 72,978,391,715 150,477,484,241

Total net assets of the Fund 72,978,391,715 150,477,484,241

Total liabilities and net assets 73,677,614,665 151,834,395,973

(2) Statement of Income and Retained Earnings

(Unit: yen)

Previous specified period Specified period

(From August 10, 2017 to February 9, 2018)

(From February 10, 2018 to August 9, 2018)

Operating revenue

Dividends income 1,291,250,255 2,137,074,590 Profit and loss on buying and selling of securities and other

△1,581,127,375 5,255,925,987

Profit and loss on dealing of derivatives △9,862,424 57,467,575 Other revenue 12 29809039

Total operating revenue △299,739,532 7,480,277,191

Operating expenses

Trustee fee 8,200,251 15,179,191

50

Investment trust management fee 44,281,521 81,967,833 Other expenses 15,018,906 25,655,468

Total operating expenses 67,500,678 122,802,492

Operating income (loss) △367,240,210 7,357,474,699

Ordinary income (loss) △367,240,210 7,357,474,699

Net income △367,240,210 7,357,474,699

Surplus (deficit) at the beginning of the period 609379316 △461,372,597 Increase in surplus or decrease in deficit from additional subscriptions for the period

497131601 2,853,232,500

Increase in surplus or decrease in deficit 26,853,101 -

Decrease in surplus or increase in deficit 470,278,500 2,853,232,500

Decrease in surplus or increase in deficit from partial exchange for the period

– 524,543,025

Decrease in surplus or increase in deficit from additional subscriptions for the period

– 524,543,025

Dividends 1,200,643,304 2,044,931,103

Surplus (deficit) at the end of the period △461,372,597 7,179,860,474

51

(3) List of Explanatory Notes (Notes Concerning Matters Pertaining to Significant Accounting Policies) 1. Valuation Basis and Method for Securities Investment securities are generally stated at market value using the moving average method in the following manner:

(i) Securities listed on financial instruments exchange, etc. Securities listed on financial instruments exchange, etc. are generally stated at the most recently available closing price on the said exchange, etc. on the calculation date. (ii) Securities not listed on financial instruments exchange, etc. Such securities are generally stated at the price quoted either by financial institutions or market price data providers. (iii) Securities whose market value was not available In cases where appropriate valuation was not available or where there are grounds to believe that the assessed valuation does not reflect market value, they are stated at the price which the investment trust management company reasonably in good faith believes reflects market value, or at the price which, in consultation with the trustee, both parties reasonably believe reflects market value.

2. Valuation Basis and Method for Derivatives REIT index futures trading They are generally stated at market value using the specific identification method. For the determination of market value, in principle, the settlement price announced by the relevant exchange or the most recently available closing price on the calculation date.

3. Recognition of Revenues and Expenses (i) Recognition of dividend income Dividend income is generally recognized on the ex-dividend date of investment securities for the prospective dividend amount. Difference with the amount received is recognized when the dividend is received. (ii) Recognition of profit and loss on buying and selling of securities and other, and profit and loss on dealing of

derivatives They are recognized on a contract date basis. (Notes to Balance Sheet)

Item End of the previous

specified period (as of February 9, 2018)

End of the specified period (as of August 9, 2018)

1 Total number of units of beneficial interests at the end of the specified period

43,225,288 units 84,342,333 units

2 Net assets per unit 1,688.33 yen 1,784.13 yen

52

(Notes to Statement of Income and Retained Earnings)

Category Previous specified period

(From August 10, 2017 to February 9, 2018) Specified period

(From February 10, 2018 to August 9, 2018) (From August 10, 2017 to November 9, 2017) (From Feb 9, 2018 to November 9, 2018)

A. Dividends income and other revenue for the period

584,938,058

yen

A. Dividends income and other revenue for the period

859,035,950 yen

B. Reserve for distribution

6,861,886 yen

B. Reserve for distribution

29,968,171 yen

C. Total dividends income and other revenue (A + B)

591,799,944

yen

C. Total dividends income and other revenue (A + B)

889,004,121yen

D. Expenses 32,131,002 yen

D. Expenses 47,776,658yen

E. Distributable amount from the revenue (C - D)

559,668,942

yen

E. Distributable amount from the revenue (C - D)

841,227,463 yen

F. Dividends 552,263,984 yen

F. Dividends 779,796,108 yen

G. Balance carried forward (reserve for distribution) (E - F)

7,404,958 yen

G. Balance carried forward (reserve for distribution) (E - F)

61,431,355 yen

H. Number of units 34,516,499 units

H. Number of units 64,983,009 units

I. Dividend per unit (F / H × number of units used in calculation)

16 yen I. Dividend per unit (F /

H × number of units used in calculation)

12 yen

Dividend calculation process

(From November 9, 2017 to Feb 9, 2018) (From November 10, 2018 to August 9, 2018) A. Dividends income and

other revenue for the period

706,312,209 yen

A. Dividends income and other revenue for the period

1,307,847,679 yen

B. Reserve for distribution

7,404,958 yen

B. Reserve for distribution

61,431,355 yen

C. Total dividends income and other revenue (A + B)

713,717,167

yen

C. Total dividends income and other revenue (A + B)

1,369,279,034 yen

D. Expenses 35,369,676

yen

D. Expenses 75,025,834

yen

E. Distributable amount from the revenue (C - D)

678,347,491

yen

E. Distributable amount from the revenue (C - D)

1,294,253,200 yen

F. Dividends 648,379,320

yen

F. Dividends 1,265,134,995

yen G. Balance carried

forward (reserve for distribution) (E - F)

29,968,171 yen

G. Balance carried forward (reserve for distribution) (E - F)

29,118,205 yen

H. Number of units 43,225,288 H. Number of units 84,342,333

53

units I. Dividend per unit (F /

H × number of units used in calculation)

15 yen I. Dividend per unit (F /

H × number of units used in calculation)

15 yen

(Notes on Financial Instruments) I Matters concerning Status of Financial Instruments 1. Policy for financial instruments The Fund is a securities investment trust as defined in Article 2, paragraph (4) of the Act on Investment Trusts and Investment Corporations; and its purpose is to invest in security financial instruments in accordance with the “basic policy for investment” prescribed in the terms and conditions of the investment trust.

2. Nature and risk of financial instruments Financial instruments held by the Fund are securities, derivative transactions, monetary claims such as call loans, and monetary liabilities. Securities held by the Fund are investment securities. Principal investment risks of the Fund include the “risk of investing in REIT” and the “risk associated with the loan, etc. of securities.” The Fund uses derivative transactions, namely REIT index futures trading, for the purposes of hedging against the risk of changes in the prices of securities, and effective investment of trust property. The main risk associated with REIT index futures trading is the risk of price changes caused by market volatility.

3. Risk management structure for financial instruments (i) Management of market risk The BlackRock Solution Green Package Production Team measures the risk on a daily basis, and delivers its reports via the intranet to the Investment Division and other relevant departments. In addition, the Portfolio Compliance Team monitors compliance with the investment guidelines; and if any violations of the guidelines, etc. are found, such violations are reported to the relevant departments and appropriate corrective measures are taken. (ii) Management of credit risk The Fundamental Bond Investment Division performs its original quantitative and qualitative analyses, etc. on individual credit risks of domestic bonds and relative values between issues. For foreign bond issues, etc., information and analysis results are shared with the Global Credit Team through the in-company research database.

54

(iii) Management of counterparty risk The Risk and Quantitative Analysis Division, together with the RQA Counterparty & Concentration Risk Team of BlackRock, Inc., the parent company in the U.S., conducts monitoring for credit deterioration of existing approved counterparties, and analyze the impact of counterparty and issuers’ risks of default on the Fund. For the approval of new counterparties, the Risk and Quantitative Analysis Division first checks the approval applications for new counterparty to see if there are no problems, and then sends the applications to the RQA Counterparty & Concentration Risk Team of BlackRock, Inc., the parent company in the U.S.

In addition, the Investment Committee, which meets monthly, deliberates on matters such as risk management and investment analysis methods. II Matters concerning Market Value, etc. of Financial Instruments

End of the previous specified period (as of February 9, 2018)

End of the specified period (as of August 9, 2018)

1. Balance sheet amount, market value and difference Balance sheet amounts of financial instruments are generally stated at their market value; and therefore there are no differences between the balance sheet amounts and market values.

1. Balance sheet amount, market value and difference

Same as on the left.

2. Method for determining market value (1) Securities Described in the section of “(Notes Concerning Matters Pertaining to Significant Accounting Policies).”

2. Method for determining market value (1) Securities

Same as on the left.

(2) Derivative transactions For derivative transactions, described in the section of “3 Derivative Transactions” under “(Other Notes).”

(2) Derivative transactions Same as on the left.

(3) Monetary claims such as call loans, and monetary liabilities

Market value of these items is considered to approximate the book value due to the short term of settlement period; therefore they are stated at their book value.

(3) Monetary claims such as call loans, and monetary liabilities

Same as on the left.

3. Supplementary explanations on matters concerning market value, etc. of financial instruments Market values of financial instruments, in addition to those based on market price, include those that are reasonably estimated in cases where market price is not available. These estimated values are based on certain assumptions, etc., and therefore they may vary according to differently employed assumptions, etc. Contract amounts, etc. of derivative transactions are merely indications of the nominal contract amounts of the derivative transactions or the

3. Supplementary explanations on matters concerning market value, etc. of financial instruments

Same as on the left.

55

nominal principal amounts for calculation purposes only, and the amounts in themselves are not indicative of the magnitude of risk associated with the derivative transactions.

4. Amount of redemption scheduled to be due after the end date of the specified period for monetary claims All monetary claims are scheduled to be redeemed within one year.

4. Amount of redemption scheduled to be due after the end date of the specified period for monetary claims

Same as on the left.

(Notes on Transactions with Related Parties)

Not applicable.

56

(Other Notes) 1 Changes in the Amount of Principal during the Period

Item End of the previous specified

period (as of February 9, 2018)

End of the specified period (as of August 9, 2018)

Amount of principal at the beginning of the period 56,593,243,163 yen 73,439,764,312 yen

Amount of principal invested during the period 28,288,350,000 yen 81,806,850,000 yen

Amount of principal partially exchanged during the period 11,441,828,851 yen 11,948,990,545 yen

2 Securities Securities available for sale/purchase

Class

End of the previous specified period (as of February 9, 2018)

End of the specified period (as of August 9, 2018)

Valuation difference recognized in profit or loss in the last period

(yen)

Valuation difference recognized in profit or loss in the last

period (yen)

Investment securities 847,852,217 1,748,975,879

Total 847,852,217 1,748,975,879

57

3 Derivative Transactions Matters concerning market value of derivative transactions Stock-related matters

Cat

egor

y

Class

End of the previous specified period (as of February 9, 2018)

Contracts amount, etc. (yen) Market value

(yen) Valuation gain or loss (yen)

of which, those exceeding one

year term (Yen)

Mar

ket t

radi

ng REIT index

futures trading

741,861,900 － 733,710,000 △8,151,900

Buying position

Total 741,861,900 － 733,710,000 △8,151,900

Cat

egor

y

Class

End of the specified period (as of August 9, 2018)

Contracts amount, etc. (yen) Market value

(yen) Valuation gain or loss (yen)

of which, those exceeding one

year term (Yen)

Mar

ket t

radi

ng REIT index

futures trading

1,702,616,300

－ 1,705,418,00

0 2,801,700

Buying position

Total 1,702,616,300

－ 1,705,418,00

0 2,801,700

(Note 1) Method for determining market value (1) Market value of REIT index futures trading is determined in the following manner: In principle, for the determination of market value, the settlement price or standard price for margin calculation announced by the main exchange on the nearest available date to the end of the specified period is used. If such prices are not available, the valuation is performed in a manner consistent with the principle, using such information as the closing price or indicative price on the nearest available date to the end of the specified period. (2) Outstanding balance of REIT index futures trading is presented on a contract amount basis. (3) Contract amounts, etc. do not include the amount corresponding to fees.

(Note 2) Hedge accounting is not applied to any of the above transactions.

58

(4) Supplementary Schedules Part 1 Schedules of Securities (i) Stocks Not applicable. (ii) Securities other than stocks

(Unit: yen)

Class Issue Number of

shares

Value

Unit price Amount

Investment Securities

ACTIVIA PROPERTIES INC 8,441 495,000.00 4,178,295,000

ADVANCE RESIDENCE INVESTMENT 17,167 286,200.00 4,913,195,400

AEON REIT INVESTMENT CORP 18,081 119,900.00 2,167,911,900

COMFORIA RESIDENTIAL REIT IN 6,718 259,200.00 1,741,305,600

CRE LOGISTICS REIT INC 1,764 110,300.00 194,569,200

DAIWA HOUSE REIT INVESTMENT 22,054 269,400.00 5,941,347,600

DAIWA OFFICE INVESTMENT CORP 4,066 667,000.00 2,712,022,000

FRONTIER REAL ESTATE INVEST 5,992 445,500.00 2,669,436,000

FUKUOKA REIT CORP 9,110 173,900.00 1,584,229,000

GLOBAL ONE REIT 11,263 112,100.00 1,262,582,300

GLP J-REIT 38,943 118,300.00 4,606,956,900

HANKYU HANSHIN REIT INC 7,308 137,800.00 1,007,042,400

HEALTHCARE & MEDICAL INVESTM 2,333 112,400.00 262,229,200

HEIWA REAL ESTATE REIT INC 10,970 107,300.00 1,177,081,000

HOSHINO RESORTS REIT INC 2,680 571,000.00 1,530,280,000

HULIC REIT INC 12,704 169,800.00 2,157,139,200

ICHIGO HOTEL REIT INVESTMENT 3,080 139,400.00 429,352,000

ICHIGO OFFICE REIT INVESTMEN 14,614 90,000.00 1,315,260,000

INDUSTRIAL & INFRASTRUCTURE 20,523 119,400.00 2,450,446,200

INVESCO OFFICE J-REIT INC 104,418 15,800.00 1,649,804,400

INVINCIBLE INVESTMENT CORP 61,641 47,450.00 2,924,865,450

JAPAN EXCELLENT INC 15,774 144,000.00 2,271,456,000

JAPAN HOTEL REIT INVESTMENT 51,004 82,600.00 4,212,930,400

JAPAN LOGISTICS FUND INC 11,763 215,700.00 2,537,279,100

JAPAN PRIME REALTY INVESTMEN 11,150 401,500.00 4,476,725,000

JAPAN REAL ESTATE INVESTMENT 17,615 577,000.00 10,163,855,000

JAPAN RENTAL HOUSING INVESTM 19,813 89,600.00 1,775,244,800

JAPAN RETAIL FUND INVESTMENT 33,292 202,500.00 6,741,630,000

KENEDIX OFFICE INVESTMENT CO 5,449 689,000.00 3,754,361,000

KENEDIX RESIDENTIAL NEXT INV 10,450 167,900.00 1,754,555,000

KENEDIX RETAIL REIT CORP 6,456 239,800.00 1,548,148,800

LASALLE LOGIPORT REIT 13,289 108,900.00 1,447,172,100

MARIMO REGIONAL REVITALIZATI 1,517 113,800.00 172,634,600

MCUBS MIDCITY INVESTMENT COR 19,850 77,600.00 1,540,360,000

MIRAI CORP 4,098 192,900.00 790,504,200

MITSUBISHI ESTATE LOGISTICS 1,633 268,400.00 438,297,200

MITSUI FUDOSAN LOGISTICS PAR 3,007 326,000.00 980,282,000

MORI HILLS REIT INVESTMENT C 20,203 141,000.00 2,848,623,000

59

MORI TRUST HOTEL REIT INC 4,133 149,300.00 617,056,900

MORI TRUST SOGO REIT INC 12,589 160,400.00 2,019,275,600

NIPPON ACCOMMODATIONS FUND 5,853 524,000.00 3,066,972,000

NIPPON BUILDING FUND INC 17,058 619,000.00 10,558,902,000

NIPPON HEALTHCARE INVESTMENT 807 172,100.00 138,884,700

NIPPON PROLOGIS REIT INC 23,628 221,700.00 5,238,327,600

NIPPON REIT INVESTMENT CORP 5,686 344,500.00 1,958,827,000

NOMURA REAL ESTATE MASTER FU 52,210 154,800.00 8,082,108,000

ONE REIT INC 2,046 257,100.00 526,026,600

OOEDO ONSEN REIT INVESTMENT 2,843 86,800.00 246,772,400

ORIX JREIT INC 35,098 173,900.00 6,103,542,200

PREMIER INVESTMENT CORP 16,748 111,500.00 1,867,402,000

SAKURA SOGO REIT INVESTMENT 3,811 91,400.00 348,325,400

SAMTY RESIDENTIAL INVESTMENT 3,194 94,500.00 301,833,000

SEKISUI HOUSE REIT INC 45,449 71,700.00 3,258,693,300

STAR ASIA INVESTMENT CORPORA 4,788 108,000.00 517,104,000

STARTS PROCEED INVESTMENT CO 2,776 167,300.00 464,424,800

TOKYU REIT INC 11,810 153,500.00 1,812,835,000

TOSEI REIT INVESTMENT CORP 2,832 113,400.00 321,148,800

UNITED URBAN INVESTMENT CORP 38,850 172,400.00 6,697,740,000

XYMAX REIT INVESTMENT CORP 1,624 113,900.00 184,973,600

Total 924,066 148,660,583,850

(Note) Figures in the total face amount column of investment securities signify the number of units.

Part 2 Schedule of Margin Contracts Outstanding

Not applicable.

Part 3 Status Table of Contract Amounts, etc. and Market Values of Derivative Transactions and Forward Foreign

Exchange Contract Transactions

Relevant matters are described in the notes on Derivative Transactions.

60

2. Current Status of the Fund iShares Core Japan REIT ETF (as of the end of August, 2018) Statement of Net Assets

I Total assets 154,750,599,630 yen II Total liabilities 1,530,049,573 yen III Total net assets (I-II) 153,220,550,057 yen IV Number of units issued 85,392,333 units V Net assets per unit (III/IV) 1,794.31 yen

61

Section 4. Outline of Unit Certificate of Domestic Investment Trust Work (1) Name Change of Unit Certificate, etc. N/A Attribution of the Units of the Fund is determined by listing or registering on the Book-Entry Account Book

with the Book-Entry Institution and no unit certificates representing such Book-Entry Units will be issued, except for the cases that the Book-Entry Institution that treats the Units of this Fund gets the designation by the competent minister revoked in accordance with provisions of the Book-Entry Transfer Law or such designation becomes invalid and there is no one to succeed the book-entry work of such Book-Entry Institution or under other unavoidable circumstances.

Unitholders shall not demand the change from a blank unit certificate to nominative one, the change from a nominative unit certificate to blank one and the reissuance of a unit certificate, except for the cases that the management company issues the unit certificates under unavoidable circumstances, etc.

(2)Unitholders’ Privilege N/A (3)Transfer of Units (a) When a unitholder transfers the Units in possession, it shall apply the book-entry with the Book-Entry Institution,

etc. involved in the Book-Entry Account Book listing or recording the Units that such unitholder intends to transfer.

(b) When the application mentioned in (a) above is made, the Book-Entry Institution, etc. mentioned in (a) above

shall list or record the decrease in the shares of Units in the possession of the transferor involved in the transfer and the increase in the shares of Units in the possession of the transferee involved in the transfer on the Book-Entry Account Book in its possession. When, however, the Book-Entry Institution, etc. mentioned in (a) above is not the institution that opens the account to which the transfer is made, it shall notify the transfer to the other Book-Entry Institution, etc. (including a superagency of the other Book-Entry Institution, etc.) that opens the account of the transferee, to which the transfer is made, so that the increase in the shares of Units can be listed or recorded on the account of the transferee, to which the transfer is made, in accordance with provisions of the Book-Entry Transfer Law.

(c) With regard to the book-entry mentioned in (a) above, in the case that the Book-Entry Institution, etc. involved

in the Book-Entry Account Book listing or recording the Units that such unitholder intends to transfer is different from the Book-Entry Institution, etc. that opens the account to which the transfer is made and when the management company acknowledge the necessity or judges that there are unavoidable circumstances, the management company may set a day or period when the book-entry is prohibited.

(4) Perfection Requirements of Units The transfer of the Units may not be asserted against the management company or the trustee company unless

it is listed or recorded on the Book-Entry Account Book. (5) Re-split of Units The management company may not re-split the Units. However, when a law concerning the book-entry of

corporate bonds, shares, etc. is implemented, the management company may re-split equally the Units at a certain point of time, upon consultation with the trustee company and in accordance with the law.

(6) Redemption upon Termination of Trust Securities to be exchanged with the Units will be delivered to the unitholder who is listed or recorded on the

Book-Entry Account Book with the Book-Entry Institution on the termination date (except for the unitholder involved in the Units, redemption of which is recorded on trust asset on or before the termination date).

(7) On Treatment of Units Listed or Recorded as Pledged

Payment of dividends, acceptance of the request for redemption, delivery of securities exchanged and exchange of securities upon termination of the trust, etc. of the Units listed or recorded as pledged on the Book-Entry Account Book with the Book-Entry Institution, etc. shall be treated in accordance with civil code and other laws and regulations, as well as provisions of covenants.

iShares Core Japan REIT ETF

Trust Deed

BlackRock Japan Co., Ltd.

- 1 -

Open-type Securities Investment Trust

iShares Core Japan REIT ETF Basic Investment Policy

The Management Company separately defines the Basic Investment Policy pursuant to the provisions

of Article 23 of the Trust Deed as follows.

1. Basic Policy

iShares Core Japan REIT ETF (the “Fund”) seeks to provide performance that closely corresponds to

the performance of Tokyo Stock Exchange REIT Index (the “Index”) by generally investing in real

estate investment trust securities incorporated and determined to constitute in the Index.

2. Management Methods

(1) Objects of Investment

The Fund invests primarily in real estate investment trust securities incorporated in, and determined

to be incorporated in, the Index.

(2) Investment Attitudes

(i) The Fund seeks to provide performance that closely corresponds to the performance of the Index.

(ii) Equity weighting adjustments will be made in any of the following cases.

- In case there is a change to the component securities of the Index, change in capital or an

adjustment to the constituent index ratio of the component securities, or such adjustment is

published.

- In case the calculation method for the Index is revised.

- In case an additional trust or redemption is executed for the Fund.

- In case the Management Company deems necessary to achieve the investment in accordance

with this investment policy

Any surplus funds that may arise during the course of an adjustment may be managed using a

call loan, etc. until the funds are invested in real estate investment trust securities.

(iii) The Fund may take a long position in real estate investment trust futures transactions with an aim

to achieve investment results linked to movements of the Index.

(iv) The Fund wholly or partly authorises BlackRock Institutional Trust Company, N.A. to make

orders for lending of securities.

(v) The Fund may not be able to be managed as indicated above because of trends regarding funds

or market conditions or remaining trust term.

- 2 -

(3) Investment Restrictions

(i) There is no restriction as to the ratios of investment in investment trust securities.

(ii) Any investment trust securities in which the Management Company instructs to invest shall be

such that are issued by an issuing company whose real estate investment trust securities are listed

on a financial instruments exchange (including those scheduled to be listed on a financial

instruments exchange) and that are incorporated in, and determined to be incorporated in, the

Index. Although real estate investment trust securities that are excluded from the Index are

basically and promptly sold by taking into account market conditions and other factors, it is not

possible to promptly sell such real estate investment trust securities due to liquidity of such real

estate investment trust securities or other reasons.

(iii) As a general rule, no investment is made in the assets denominated in foreign currencies.

3. Income Distribution Policy

As a general rule, the aggregate of dividend income (meaning the distributions, fees for lending

securities and other similar incomeless interest on payments) after deduction of the expenses will be

distributed quarterly at the end of each financial period (February 9, May 9, August 9 and November

9, in principle).

4. Other Characteristics of the Fund

(i) Units are listed.

(ii) Creation/redemption of units are conducted based on a unit called “Creation Unit” or its integral

multiples specified by the Management Company. “Creation Unit” is a unit represented by a

number of units specified by the Management Company to conduct creation/redemption of units.

- 3 -

Subsequently Offered Securities Investment Trust

iShares Core Japan REIT ETF Trust Deed

Article 1 [Type of Trust, Management Company and Trustee, Entrustment of Trust Administration]

This trust is a securities investment trust, with BlackRock Japan Co., Ltd. as the Management

Company and Mitsubishi UFJ Trust and Banking Corporation as the Trustee.

(ii) This trust shall be governed by the Trust Act (Act No. 108 of 2006).

(iii) The Trustee may enter into a Trust Deed, with respect to part of the process of trust administration,

in the form of entrustment of trust administration pursuant to Article 28, Paragraph 1 of the Trust Act,

with a financial institution that has received authorisation for engagement in the trust business

provided in Paragraph 1 of Article 1 of the Act on Concurrent Operation of Trust Business by a

Financial Institution (including its interested party (that is, an interested party prescribed in Item 1 of

Paragraph 2 of Article 29 of the Trust Business Act applied mutatis mutandis to Paragraph 1 of Article

2 of the Act on Concurrent Operation of Trust Business by a Financial Institution, and the same applies

hereinafter in this Article)), and make the entrustment thereof.

(iv) Assignment of operations to an interested party mentioned in the preceding paragraph will be

made when such assignment does not hinder the protection of the unitholders.

Article 2 [Purpose of Trust and Equivalent Amount]

The Management Company shall place in trust, securities and money equivalent to a total value of no

more than 100 billion yen for the purpose of earning income for unitholders, and the Trustee shall

undertake them upon trust.

Article 3 [Maximum Value of Trust Funds]

The Management Company may, based on agreement reached with the Trustee, add trust funds up to

a total equivalent value of no more than 10 trillion yen in securities and money.

(ii) The Management Company may, based on agreement reached with the Trustee, change the

maximum value described in the preceding paragraph.

Article 4 [Trust Term]

This trust shall have no term, provided, however, that this trust may be terminated pursuant to the

provisions of Paragraphs (i) and (ii) of Article 53, Paragraph (i) of Article 55, Paragraph (i) of Article

56 and Paragraph (ii) of Article 58.

- 4 -

Article 5 [Type of Solicitation of Offer for Creation of Units]

The solicitation of an offer for creation of units relating to this trust falls under Item (i) of Paragraph

3 of Article 2 of the Financial Instruments and Exchange Act and shall be made by means of a public

offering provided in Paragraph 8 of Article 2 of Act on Investment Trusts and Investment Corporations.

Article 6 [Listing on Financial Instruments Exchange]

The Management Company shall, with respect to units of this trust, apply for listing on the Financial

Instruments Exchange provided in the Attachment of the Trust Deed (the Financial Instruments

Exchange Market provided in Paragraph 16 of Article 2 of the Financial Instruments and Exchange

Act; the same applies hereinafter,) and the units shall be listed based on the authorisation received

from the Financial Instruments Exchange according to the regulations and rules provided for in the

Financial Instruments Exchange.

(ii) The Management Company shall, when the units of this trust are listed, comply with the rules and

regulations provided for the Financial Instruments Exchange in the preceding paragraph, and adhere

to the termination of listing or suspension of sales and purchase transactions and any other action taken

against the units in accordance with the regulations and rules of the Financial Instruments Exchange.

Article 7 [Definitions]

In the Trust Deed herein, definitions of the terms in the following items shall be as defined under each

item.

1. “Total Net Asset Value” is the value of total assets minus the value of total liabilities.

2. “Total Assets Value” is the aggregated mark-to-market value of assets (excluding substitute

securities for received cash collateral) that belong to the trust property derived in accordance with

the respective laws and regulations as well as the rules of The Investment Trusts Association,

Japan.

3. “Net Asset Value” is the amount derived by dividing Total Net Asset Value by the total number of

units as of the calculation date.

4. “Dividend and Other Income” refers to the amount derived by deducting interest paid from the

aggregated value of distributions, interest income and other income.

Article 8 [Initial Unitholders]

The unitholders at the time of initial conclusion of the Trust Deed and of additional trust placed shall

be the authorised participants and the parties applying for creation of units of this trust as specified by

the authorised participants provided in Paragraph (i) of Article 17, and units split as per Article 9 shall

belong to the creation applicants of units in proportion to the number of units applied for creation.

- 5 -

Article 9 [Splits and Re-splits of Units]

The Management Company shall split, with respect to the units arising as a result of trust provided in

Article 2, up to no more than the units equivalent to 100 billion yen, and with respect to units arising

as a result of additional trust placed, to the number of units of additional trust in Article 11 for every

additional trust made, equally and respectively.

(ii) The Management Company may, based on discussion with the Trustee, re-split equally the units

as of a certain date.

Article 10 [Value of Initial Units]

The value of a unit issued at the time of inception of trust shall be the closing price of Tokyo Stock

Exchange REIT Index (the “Index”) on one (1) business day prior to the date of conclusion of the

Trust Deed multiplied by 1 yen and rounding off any numbers below 1 yen.

Article 11 [Establishment of Additional Trust]

Additional trust shall be established by securities and cash equivalent to the amount derived by taking

the Net Asset Value on one (1) business day prior to the date of establishing additional trust and

multiplying it by an integral multiple of a certain number of units specified by the Management

Company relating to the additional trust (the “Creation Unit”).

Article 12 [Accounting for Additional Trust Assets]

Additional trust assets shall be accounted for by recognising the amount of difference between the

amount of additional trust and the amount corresponding to the principal as the difference on additional

trust.

Article 13 [Accounting for Redemption of Units for Securities]

In redeeming units in exchange for securities defined in Article 47, Creation Unit is adjusted to prevent

arising of any difference between the amount derived by multiplying the number of units comprising

the Creation Unit against the Net Asset Value as of the date of accepting the application for redemption

and the total market value of securities corresponding to the principal.

Article 14 [Substance of Units on Different Trust Date/Time]

No variance arises as a result of differences in trust dates/time with respect to the units of this trust.

Article 15 [Jurisdiction Over Units and Non-Issuance of Unit Certificates]

All units of this trust shall be governed by the provisions of the Act on Book-Entry of Company Bonds,

Shares, etc. (the “Book-Entry Act”), and the jurisdiction of the units shall be determined based on the

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statement or recording made on the book-entry account registry of a book-entry institution to which

the Management Company had given its consent to handle the units of this investment trust (the

“Book-entry Institution” provided in Article 2 of the Book-Entry Act, and hereafter referred to as

“Book-entry Institution”) and of a subordinate account management institution of the aforesaid Book-

entry Institution (the “Account Management Institution” provided in Article 2 of the Book-entry Act,

and hereafter referred to, inclusive of Book-entry Institution as “Book-entry Institution, etc.”) (these

units determined based on the statement or recording made on the book-entry account registry are

hereafter referred to as “Book-entry Units”).

(ii) The Management Company shall not issue unit certificates that represent Book-entry Units, in case

the designation from the competent minister as a Book-entry Institution that handles the units of this

trust is cancelled or the designation is no longer in effect with the exception of when there is no party

to succeed the book-entry business of the Book-entry Institution or there is an unavoidable

circumstance.

Unitholders shall not, unless in cases where unit certificates are issued due to an avoidable

circumstance, etc. of the Management Company, request a change from bearer unit certificates to

registered unit certificates, a change from registered unit certificates to bearer unit certificates, or a

reissuance of unit certificates.

(iii) The Management Company shall, with respect to units split pursuant to the provisions of Article

9, notify the Book-entry Institution of matters provided for in the Book-entry Act to newly state or

record on the book-entry account registry of Book-entry Institution, etc. The Book-entry Institution,

etc. shall, when the notification from the Management Company is made to the Book-entry Institution,

newly state or record on the book-entry account registry, maintained in accordance with the provisions

of the Book-entry Act.

Article 16 [Notification by Trustee Concerning Establishment of Units]

The Trustee shall, when receiving a notification on receipt or book-entry executed with regard to the

portfolio composition file at the time of the conclusion of the Trust Deed (securities necessary for

subscribing for the number of units equivalent to one (1) Creation Unit that correspond to the securities

specified by the Management Company as issues constituting the Index and money; hereafter referred

to as the “PCF”), notify the Book-entry Institution to the effect that initial trust was established.

(ii) The Trustee shall, when receiving a notification on receipt or book-entry executed with regard to

the PCF relating to additional trust, notify the Book-entry Institution to the effect that additional trust

was placed.

Article 17 [Numbers and Amounts of Application of Units]

The Management Company may respond to the application for creation of units to be split pursuant to

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the provisions of Paragraph (i) of Article 9 submitted by the Authorised Participant (which means a

Type I Financial Instruments Business Operator (which means any person engaged in Type I Financial

Instruments Business as defined in Paragraph 1 of Article 28 of the Financial Instruments and

Exchange Act) specified by the Management Company; the same applies hereinafter) and any party

applying for creation of no less than a certain number of units specified by the Authorised Participant

(the “Creation Applicant”).

(ii) An Authorised Participant may broker the submission of the application for creation of units to be

split pursuant to the provisions of Paragraph (i) of Article 9.

(iii) The Management Company shall present the PCF to the Authorised Participant one (1) business

day prior to the date of application for creation.

(iv) The Authorised Participant shall present the PCF to the Creation Applicant for which the

Authorised Participant serves as a broker for the application for creation.

(v) In the case of the first paragraph above, the Management Company accepts the application for

creation of units in the number equivalent to an integer multiple of Creation Unit in exchange for

securities and cash equivalent to the securities specified by the Management Company as issues

comprising the Index by the time specified in the Attachment of the Trust Deed on the date of the

application for creation.

(vi) The value of units in the case of the first paragraph above shall be the Net Asset Value as of the

date of the application for creation. The Authorised Participant may charge the amount corresponding

to the individually defined brokerage commission and consumption tax, etc. on the brokerage

commission.

(vii) Notwithstanding the provisions of Paragraph (v) above, the Management Company may not

respond to the application for creation of units for the dates and periods in the following items. In such

a case, the PCF is not presented.

1) For a period of two business days, beginning two business days prior to the final date of calculation

period provided in Article 37 (or, if the final date of calculation period falls on a holiday, for a

period of three business days, beginning three business days prior to the final date of calculation

period)

2) In the event that Management Company determines the Fund cannot be managed according to the

Fund’s investment policies provided in Article 23 due to unavoidable circumstances.

3) For a period of three business days, beginning one business day prior to the ex-distribution or ex-

rights day of any constituents of the Index.

4) For a period of three business days, beginning one business day prior to the rebalance day for

constituents of the Index, or the day the index component ratios of constituent issues are changed.

5) For a period, beginning one business day prior to the delisting day (due to the consolidation and

split of any constituents of the Index) and ending one business day after the Index inclusion day

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for new shares (due to such consolidation and split).

6) On any day on which trading of constituents of the Index is suspended.

7) For a period of five business days prior to the date of trust termination, if this trust terminates.

8) Any event other than in 1) through 7) above in which the Management Company determines the

Fund’s operations may be undermined due to unavoidable circumstances.

(viii) The Creation Applicant in the first paragraph above shall present to the Authorised Participant

at the time of applying for creation or in advance, the account with a Book-entry Institution, etc.

opened for the Creation Applicant for the book-entry of units of this trust, and the increase in the

number of units relating to the application for creation is stated or recorded on the account. The

Authorised Participant may state or record the increase in the number of units relating to the Creation

Applicant to the account in exchange for the delivery of the PCF or payment required for the

application for creation.

(ix) Notwithstanding the provisions of Paragraph (v), the Management Company may, in the event of

a suspension of trading on the Financial Instruments Exchange, of a suspension of settlement functions,

or of any other unavoidable circumstance, suspend the acceptance of application for creation of units,

cancel the application for creation already accepted, or both at its discretion.

(x) The Authorised Participant and Creation Applicant cannot cancel an application for creation upon

and any time after the Management Company has accepted the application for creation.

(xi) The Authorised Participant shall deliver to the Management Company the securities and cash

required for the application for creation by the deadline specified by the Management Company (the

“Delivery Deadline”).

(xii) The Management Company shall adjust the Creation Unit in cases where the appraised value of

securities to be delivered by the Authorised Participant to the Trustee exceeds the value of units in

integral multiples of Creation Unit relating to the application for creation.

(xiii) If the Authorised Participants determine that it will be difficult for the Authorised Participants or

the applicants to deliver by the Delivery Deadline all or any part of the stocks or cash to be delivered

that constitute the creation unit as at the time of creation (such delivery, the “Whole or Partial

Delivery”), the Authorised Participants shall immediately notify the Management Company or the

Trustee to such effect.

(xiv) If the Management Company, based on the notification in the preceding item, determines that

Whole or Partial Delivery will not be possible within the period prescribed by the Management

Company as a period in which there is no likelihood of hindrance being caused to operations that are

in line with the “Basic Investment Policy” prescribed in Article 23, creation applications for or

redemptions of trust units, or any other operations of the trust, the Management Company may cancel

creation applications that have already been received from Authorized Participants or applicants.

(xv) In the preceding item, if any damage arises to the trust property or otherwise due to the Whole or

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Partial Delivery not being possible, the Authorized Participants will bear all liability in respect thereof.

Article 18 [Statement or Recording Concerning Transfer of Beneficial Interest]

A unitholder shall, when transferring the units it owns, apply for book entry to a Book-entry Institution,

etc. relating to the book-entry account registry on which the units subject to the transfer is stated or

recorded.

(ii) In the case an application for book entry in the preceding paragraph is made, the Book-entry

Institution, etc. in the preceding paragraph shall state or record on the book-entry account registry

maintained, the decrease in the number of units owned by the transferor relating to the transfer and the

increase in the number of units owned by the transferee. In the case, however, where the Book-entry

Institution, etc. in the preceding paragraph is not the party that opened the receiving book-entry

account, the Book-entry Institution, etc. shall notify another Book-entry Institution, etc. that opened

the receiving book-entry account of the transferee (including the superior institution of the Book-entry

Institution, etc.) in accordance with the provisions of the Book-entry Act.

(iii) The Management Company may, with respect to the book entry provided in the first paragraph

above, establish dates or period of book-entry suspension in cases for example the Book-entry

Institution, etc. relating to the book-entry account registry on which the units of the unitholder to be

transferred are stated or recorded and the Book-entry Institution, etc. that opened the receiving book-

entry account of the transferee differ and when the Trustee deems it necessary to do so or determines

that there is an unavoidable circumstance.

Article 19 [Perfection of Transfer of Units]

Any transfer of units cannot be asserted to the Management Company and the Trustee unless based on

the statement or recording on the book-entry account registry provided in the preceding Article.

Article 20 [Types of Assets as Investment Objectives]

The types of assets as investment objectives under this trust shall be specified assets described below

(“Specified Assets” refer to such provided in Paragraph 1 of Article 2 of the Act on Investment Trusts

and Investment Corporations; the same applies hereinafter.)

(a) Securities

(b) Rights relating to Derivative Transactions (such provided in Paragraph 20 of Article 2 of the

Financial Instruments and Exchange Act, and only such provided under Article 27 of the Trust

Deed.)

(c) Monetary claims (including deposits and call loans, and excluding items that fall under (a)

and (b) herein.)

(d) Promissory notes

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Article 21 [Scope of Investment Instructions]

The Management Company shall give instructions to invest the trust property primarily in the

unitholder securities of investment trusts or foreign investment trusts (meaning the unitholder

securities specified in Article 2, paragraph 1, item 10 of the Financial Instruments and Exchange Act)

and the investment securities or foreign investment securities (meaning those specified in Article 2,

paragraph 1, item 11 of the Financial Instruments and Exchange Act) as well as the following securities

(excluding the rights regarded as securities as provided in each of the items in Paragraph 2 of Article

2 of the Financial Instruments and Exchange Act.)

1. Government bonds

2. Local government bonds

3. Bonds issued by a juridical person under a special legislation

and bonds (excluding subscription warrants of corporate bonds with subscription warrants in

which the subscription warrant and the bond is integrated)

4. Short-term bonds (meaning short-term company bonds provided under Item (i) in Article 66 of the

Act on Book-Entry of Company Bonds, Shares, etc., short-term bonds provided in Paragraph 1 of

Article 61-10 of the Insurance Business Act, specified short-term bonds provided in Paragraph 8

of Article 2 of the Act on the Securitization of Assets, short-term commercial and industrial bonds

provided in Article 33-2 of the Shoko Chukin Bank Act, short-term bonds provided in Paragraph 1

of Article 54-4 of the Shinkin Bank Act and short-term Norinchukin Bank bonds provided in

Paragraph 1 of Article 62-2 of the Norinchukin Bank Act.)

5. Commercial paper

6. Securities or certificates issued by a foreign state or foreign entity and have characteristics

comparable to the securities or certificates in each of the preceding paragraphs.

7. Transferable deposit certificates issued by a foreign juridical person

Securities in Item 1 through Item 3 shall be referred hereinafter as “Public Bonds”, and the

management company may only give instructions to invest in the Public Bonds only in the case of

buying repurchase transactions (purchase subject to sell-back) and bond lending transactions (cash-

secured bond lending).

(ii) The Management Company may give instructions to invest the trust money in securities described

in the preceding paragraph as well as in financial instruments listed below (including the rights

regarded as securities as provided in each of the items in Paragraph 2 of Article 2 of the Financial

Instruments and Exchange Act.)

1. Deposits

2. Specified monetary trusts (excluding beneficiary securities of certificates-issuing trusts provided

- 11 -

in Item (xiv) in Paragraph 1 of Article 2 of the Financial Instruments and Exchange Act.)

3. Call loans

4. Negotiable instruments traded on the discount market

Article 22 [Dealings with Interested Parties, etc.]

The Trustee may, under the instruction of the Management Company, invest in the types of assets set

out in the preceding two Articles and transactions set out in Article 26 through Article 28, Article 33

and Article 34 and other similar acts between the trust property and the Trustee (including cases when

the Trustee acts as an agent for a third party in transactions or other acts that are made with a third

party for the trust property) and its interested parties (that is, an interested party prescribed in Article

29, Paragraph 2, Item 1 of the Trust Business Act applied mutatis mutandis to Article 2, Paragraph 1

of the Act on Provision of Trust Business by a Financial Institution, and the same definition applies

hereinafter in this paragraph, the following paragraph and Article 31), trustees of trust business to be

prescribed in Paragraph (i) of Article 31, and their interested parties or other trust property of the

Trustee to the extent such investment will not conflict with the Trust Business Act, the Act Concerning

Investment Trusts and Investment Companies and other related laws and regulations, if such

investment or transactions will not prejudice the protection of the unitholders and will not conflict

with the Trust Business Act, the Act Concerning Investment Trusts and Investment Companies and

other related laws and regulations.

(ii) The Trustee may make transactions and other acts that it is entitled to make as part of trust

operations pursuant to its authority as the Trustee of the Trust in its own account or that of its interested

party. Similarly, any interested party of the Trustee may make such acts in the account of the interested

party.

(iii) The Management Company may order investment in the types of assets set out in the preceding

two Articles and transactions set out in Article 26 through Article 28, Article 33 and Article 34 and

other similar acts between the trust property and the Management Company and its directors, executive

officers and interested parties (which mean the parent companies and subsidiaries defined in Article

31-4, Paragraph 3 and Paragraph 4 of the Financial Instruments and Exchange Act; the same definition

applies hereinafter) or other trust property with respect to which the Management Company gives

investment instructions if such transactions will not conflict with the Financial Instruments and

Exchange Act, the Act Concerning Investment Trusts and Investment Companies and other related

laws and regulations and the Trustee may make such investment, transactions and acts upon

instructions by the Management Company.

(iv) When making an investment, a transaction or the acts mentioned in the preceding three paragraphs,

neither the Management Company nor the Trustee will give unitholders the notice prescribed in

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Paragraph 3 of Article 31, and Paragraph 3 of Article 32 of the Trust Act.

Article 23 [Investment Policy]

The Management Company shall, in managing the trust property, give instructions in accordance with

the investment policy separately set forth.

Article 24 [Authorisation for Management]

In case of lending of securities pursuant to Article 26, the Management Company shall wholly or partly

authorise the following person to make orders for lending of securities.

Trade name: BlackRock Institutional Trust Company, N.A.

Address: San Francisco, CA, U.S.A.

(ii) In case of lending of securities, the fees received by the person designated in the preceding

paragraph shall be paid out of the fees to be received pursuant to Article 41, and the amount of the fees

shall be separately determined by the Management Company, such person designated in the preceding

paragraph and the Trustee.

(iii) Notwithstanding the first paragraph, if the entity authorised in Paragraph (i) of this Article violates

any law, exercises the authorisation to make orders for management which results in breaching the

Trust Deed, or causes a material loss to the trust property, or it is otherwise deemed necessary for

reasonable grounds, the Management Company may discontinue its authorisation to the person to

make orders for management or modify the content of the authorisation.

Article 25 [Scope of Investment Trust Securities for Investment]

Investment trust securities in which instructions are given to invest by the Management Company shall

be such issued by issuers whose real estate investment trust securities are listed on Financial

Instruments Exchanges, provided, however, that this does not apply to real estate investment trust

securities acquired through investor allotment.

(ii) Notwithstanding the provisions of the preceding paragraph, the Management Company may give

instructions to invest in real estate investment trust securities scheduled to be listed or registered if

such plan of listing and registration can be confirmed in a prospectus or any other related document.

Article 26 [Instruction and Scope for Lending of Securities]

The Management Company (including the person designated in Article 24; the same applies in this

Article) may, in order to contribute to the efficient management of the trust property, give instructions

to lend securities that belong to the trust property to the extent prescribed in the following paragraphs.

(ii) Lending of securities shall be such that the total market value of lending securities at the time of

lending does not exceed 50 percent of the total market value of securities held under the trust property.

- 13 -

(iii) In the event the maximum value prescribed in the preceding paragraph will be exceeded, the

Management Company shall promptly instruct to cancel part of the contract corresponding to the

amount of excess.

(iv) The Management Company shall give an instruction to accept collateral if it deems necessary to

do so in lending securities.

Article 27 [Instructions and Scope for Futures Transactions and others]

The Management Company may give instructions to enter into, at Financial Instruments Exchanges

in Japan, securities futures transaction (such as prescribed under Item (iii)(a) in Paragraph 8 of Article

28 of the Financial Instruments and Exchange Act) that are futures transactions investing in real estate

investment trust indexes, and to enter into transactions comparable to the aforesaid transactions at

Financial Instruments Exchanges in foreign countries.

Article 28 [Instructions and Scope for Borrowing of Public Bonds]

The Management Company may, in order to contribute to the efficient management of the trust

property, give instructions to borrow the Public Bonds. The Management Company may give an

instruction to pledge collateral if it is deemed necessary to pledge collateral in borrowing the Public

Bonds.

(ii) Instructions in the preceding paragraph shall be such that the total market value of the Public Bonds

relating to the borrowing shall fall within the total Net Asset Value of the trust property.

(iii) In the event the total market value of the Public Bonds relating to the borrowing in the preceding

paragraph is to exceed the total Net Asset Value of the trust property for the reason of partial

cancellation of the trust property or other reasons, the Management Company shall promptly give an

instruction to settle part of the borrowed Public Bonds that corresponds to the amount of excess.

(iv) Interest on the borrowing described in Paragraph (i) above shall be paid out of the trust property.

Article 29 [Investment Restrictions on Derivative Transactions]

The amount of derivative transactions as calculated by a reasonable method set forth under the rules

of the Investment Trusts Association, Japan will not exceed the total net asset value of the trust property.

Article 30 [Investment Restrictions for Hedging the Concentration of the Credit Risk]

The ratio of stock exposure, bond exposure and derivative exposure to a person prescribed by the rules

of the Investment Trusts Association, Japan to the Total Net Asset Value of the trust property will not,

in principle, exceed ten-hundredths respectively, or twenty-hundredths in total, and if such ratio

exceeds such rate, the Management Company shall make adjustments so that such ratio is within such

rate in accordance with the rules of the Investment Trusts Association, Japan.

- 14 -

Article 31 [Delegation of Fiduciary Services]

When the Trustee delegates fiduciary services defined in Paragraph 1 of Article 22 of the Trust

Business Act with respect to part of its fiduciary functions in consultation with the Management

Company, the Trustee will select entities which fall under all of the following standards (including

interested parties of the Trustee) as its trustees:

1. Entities for which there are no concerns regarding their continuous conduct of the delegated

functions in light of their creditworthiness;

2. Entities that are deemed to be able to surely process the delegated functions in light of their past

results and other factors relating to the delegated functions;

3. Entities that have already arranged a system for a separate management of assets belonging to

the trust property to be delegated and its own and other assets; and

4. Entities that have already arranged a system for appropriate conduct of operations relating to

internal management.

(ii) When selecting trustees provided for in the preceding paragraph, the Trustee will confirm that each

of the prospective trustees falls under the standards set out in the items of the preceding paragraph.

(iii) Notwithstanding the preceding two paragraphs, the Trustee may delegate operations set out in the

following items to any person or entity (which may be an interested party of the Trustee) deemed

appropriate both by the Trustee and the Management Company, regarding:

1. Operations relating to custody of the trust property;

2. Operations for utilisation or improvement of the trust property to the extent that the characteristics

of the trust property will not be changed;

3. Operations relating to acts necessary for disposal of the trust property and achievement of other

trust purposes only under instructions of the Management Company; and

4. Acts which have supplementary functions for the Trustee’s conduct of operations.

Article 32 [Withholding of Registration, etc. and Recording etc. of Trust Property]

With regard to the trust property for which this trust can be registered or recorded, registration or

recording of trust shall be made, provided however, that the registration or recording of trust may be

withheld if approved by the Trustee.

(ii) Notwithstanding the conditional clause in the preceding paragraph, the registration or recording

shall be promptly made for the protection of unitholders or if deemed necessary to do so by the

Management Company or the Trustee.

(iii) With regard to the trust property for which a statement or recording can be made to the effect that

assets belong to the trust property, the statement or recording to the effect shall be made, and

concurrently, such assets shall be managed separately by means of a method that clearly indicates the

- 15 -

calculation. The assets, however, may simply be managed separately by means of a method that clearly

indicates the underlying calculation if approved by the Trustee.

(iv) Personal Assets (excluding money) may be managed separately by means of a method that can be

outwardly segregated or a method that clearly indicates the underlying calculation.

Article 33 [Instructions to Sell Securities and Others]

The Management Company may give instructions to sell securities and other assets that belong to the

trust property.

Article 34 [Instructions for Reinvestment]

The Management Company may give instructions to reinvest sales proceeds, distribution money from

investment trust securities, redemption amount, etc. of securities, interests, etc. on securities and other

income.

Article 35 [Attribution of Income and Loss]

Any income and loss arising to the trust property as a result of acts based on instructions of the

Management Company shall belong to the unitholders.

Article 36 [Advancement of Funds by Trustee]

In case of issuance of allotment of securities that belong to the trust property to investors, the Trustee

may advance funds if requested by the Management Company.

(ii) If estimates of amounts of distribution on investment trust securities, redemption amount, etc. of

securities, interests, etc. on securities or any other receivable that belongs to the trust property can be

made before the date of termination of this trust, the Trustee may advance these amounts to be

incorporated in the trust property.

(iii) With regard to the settlement of advances in the preceding two paragraphs and interest thereof,

the Trustee and the Management Company shall separately define such settlement and interest as they

arise based on discussions.

Article 37 [Calculation Period of Trust]

The calculation period of this trust shall in principle be the period from February 10 to May 9 of each

year, from May 10 to August 9 of each year, from August 10 to November 9 of each year, and from

November 10 of each year to February 9 of the following year, provided, however, that the first

calculation period shall be from the execution date of the Trust Deed to February 9, 2016, and the final

date of the calculation period shall be the termination day of the trust term when this trust is terminated

in accordance with the provisions of the proviso of Article 4.

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Article 38 [Report on Trust Property]

The Trustee shall calculate income and loss at the end of every calculation period, prepare a report on

the trust property and submit the report to the Management Company.

(ii) The Trustee shall perform the final calculation upon termination of trust, prepare a report on the

trust property and submit the report to the Management Company.

(iii) The Trustee will make reports prescribed in the preceding two paragraphs instead of reports to

unitholders which are prescribed in Paragraph 3 of Article 37 of the Trust Act.

(iv) No unitholder is entitled to apply to the Trustee for access to or reproduction of information

prescribed in Paragraph 1 of Article 38 of the Trust Act except for information indispensable for

preparation of documents or electronic records prescribed in Paragraph 2 of Article 37 of the Trust Act

and other material information relating to the trust and information which may do no harm to the

interests of persons other than the unitholder.

Article 39 [Expenses Concerning Trust Administration]

Taxes relating to the trust property, various expenses required in trust administration and interest on

advances made by the Trustee (including the expenses provided in Paragraph (ii) below, the

“Expenses”) shall be borne by the unitholders and paid from the trust property.

(ii) Audit expenses in connection with the trust property and consumption tax, etc. in connection with

the audit expenses shall be paid from the trust property at the end of every calculation period or at the

time of termination of this trust.

(iii) In addition to the Expenses provided in the preceding two paragraphs, the following expenses

(including consumption tax, etc. in connection with such expenses) shall be borne by the unitholders

and paid from the trust property:

1. expenses for listing of units; and

2. fees for use of trademark of the Index.

(iv) The Management Company may pay the Expenses provided in the preceding paragraph for the

trust property, and may be reimbursed for the amount of payment out of the trust property. In lieu of

the receipt of the amount to be actually paid, the Management Company may, after reasonably

estimating the amount of such Expenses, receive the maximum amount to be actually, or expected to

be, paid at the fixed rate or in the fixed amount out of the trust property.

(v) If the maximum amount, fixed rate or fixed amount of the Expenses is determined pursuant to the

preceding paragraph, the Management Company may change such maximum amount, fixed rate or

fixed amount during the trust term in light of the size of the trust property and other matters.

(vi) If the fixed rate or fixed amount of the Expenses is determined pursuant to the preceding two

paragraphs, the amount of such Expenses shall be recorded based on the Total Net Asset Value of the

- 17 -

trust property every day throughout the calculation period provided in Article 37. The amount

corresponding to the Expenses and consumption tax, etc. associated with such Expenses shall be paid

out of the trust property at the end of each financial period or at the time of termination of this trust.

Article 40 [Total Amount of Trust Fees, etc.]

The total amount of trust fees for the Management Company and the Trustee shall be the amount

derived by multiplying a ratio within 16/10,000 per annum against the Total Net Asset Value of the

trust property every day throughout the calculation period provided in Article 37.

(ii) The fees in the preceding paragraph shall be paid from the trust property at the end of every

calculation period or at the time of termination of this trust, and the distribution between the

Management Company and the Trustee shall be separately defined.

(iii) The amount corresponding to the consumption tax, etc. associated with the trust fees in the first

paragraph above shall be paid from the trust property when paying the trust fees.

Article 41 [Fees for Lending of Securities]

In addition to the trust fees provided in Article 40, in the case of lending securities, the Management

Company, the person designated in Paragraph (i) of Article 24 and the Trustee shall receive the amount

equal to the total income arising from lending securities multiplied by the ratio within fifty-hundredths.

Such fees shall be paid on a monthly basis out of the trust property, and allotment of such fees between

the Management Company, the person designated in Paragraph (i) of Article 24 and the Trustee shall

be determined separately.

(ii) Consumption tax, etc. imposed on the fees relating to the Management Company and the Trustee

set out in the first paragraph above shall be paid out of such fees.

Article 42 [Income Distribution Policy]

Dividend and other income arising from the trust property and reserve for distribution carried forward

from the previous period shall be distributed to unitholders at every calculation period of trust after

deducting the total amount of trust fees and Expenses provided in each paragraph of Article 39, and

consumption tax, etc. imposed thereon (in this Article, the “Costs”) and fully compensating for reserve

for distribution, if any, carried forward from the previous period. If, however, for purposes of making

adjustments to the income distribution amount, part or all of the amount is retained within the trust

property, the amount may be put aside as reserve for distribution and be appropriated to the distribution

in the following period or thereafter. In the event expenses and negative amount of reserve for

distribution cannot be fully deducted, the difference shall be carried forward to the following period

as negative amount of reserve for distribution.

(ii) The total amount of income arising from the trust property at the end of every calculation period

- 18 -

described in item 1) below shall, if after deducting the loss described in 2) there is loss carried forward,

be carried forward to the next period after fully compensating for the loss.

1) Gain on purchase & sale of securities, gain on trading futures transactions, etc., gain on additional

trust, gain on redemption

2) Loss on purchase & sale of securities, loss on trading futures transactions, etc., loss on additional

trust, loss on redemption

Article 43 [Preparation of Register of Unitholders and Registration]

The Trustee shall prepare the register of unitholders of this trust, and register the personal name or

entity name, address and other matters designated by the Trustee in the register of unitholders with

respect to the unitholders provided in Article 8.

(ii) The Trustee shall register the personal name or entity name and address, and other matters

designated by the Trustee of the person who holds units and who receives notice from the Book-entry

Institution pursuant to the relevant laws and ordinances such as the Book-entry Transfer Act and other

various regulations as the holders of units stated or recorded on the book-entry account registry of the

Book-entry Institution, etc. The Trustee may enter into a delegation agreement with the person

determined by the Trustee to be appropriate such as other securities agent companies, and delegate

such person to prepare the register of unitholders and make the registration in the register of

unitholders.

(iii) Unitholders may request the registration in the register of unitholders provided in the first

paragraph above through a member of the Financial Instruments Exchange on which units of this trust

are listed (such member shall be limited to Account Management Institution; the same applies

hereinafter.). In this case, the member may charge the amount corresponding to the commission set by

the Account Management Institution and the consumption tax, etc. relating to the commission,

provided, however, that securities finance companies, etc. may perform the registration provided in

the preceding paragraph directly with the Trustee (or, if the Trustee delegates the preparation of the

register of unitholders pursuant to the first paragraph above, the person so entrusted).

(iv) The name registration provided in the preceding paragraph shall be suspended for a period of

fifteen (15) days from the day immediately following the last day of each financial period provided in

Article 37. If this trust terminates, the registration shall be suspended for a period of five (5) business

days immediately prior to the date of trust termination.

Article 44 [Payment of Distribution of Income]

Distribution of income will be paid out to any unitholder registered in the register of unitholders

provided in Article 43 as of the final date of the relevant financial period as a unitholder (a “Registered

Unitholder”) as of the final date of the relevant financial period.

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(ii) The payment of income distribution provided in the preceding paragraph shall be made from the

day specified by the Management Company, which falls within forty (40) days of the completion of

every calculation period, by depositing the income distribution payment in the deposit account

specified in advance by the Registered Unitholder. If the Registered Unitholder separately enters into

an agreement regarding handling of the distribution of income with a member provided in Paragraph

(iii) of Article 43, the distribution of income shall be paid pursuant to such agreement.

(iii) In relation to the payment of distribution of income, the Trustee may delegate the person who has

been delegated to prepare the register of unitholders in accordance with the provisions of Paragraph

(ii) of Article 43.

Article 45 [Liability of Trustee Regarding Issuance and Payment of Income Distribution to the

Management Company]

The Trustee shall, when there is an outstanding payable balance of income distribution after five (5)

years have passed since the initial date of payment provided in Paragraph (ii) of Article 44, pay the

amount to the Management Company.

(ii) After the payment of the distribution of income has been made to the Management Company

pursuant to the provisions of the preceding paragraph, the Trustee shall not be held liable for the

payment to the unitholders of the amount so paid.

Article 46 [Prescriptions Concerning Income Distribution, and Securities Subject to Redemption upon

Trust Termination and Repurchase Price]

In the event a unitholder has not claimed payment of income distribution for five years from the initial

date of payment provided in Paragraph (ii) of Article 44, such unitholder loses the right to claim

income distribution, and the money received by the Management Company from the Trustee shall

belong to the Management Company.

(ii) In the event a request for delivery of securities and cash subject to Redemption upon trust

termination has not been made for ten (10) years from the date of trust termination, or a request for

repurchase has not been made for ten (10) years form the initial date of payment, the right to apply for

redemption is lost, and is placed under the Management Company.

Article 47 [Application for Redemption]

An Authorised Participant and any unitholder submitting an application for redemption for no less

than a certain number of units specified by an Authorised Participant (the “Redemption Applicant”)

may request the Management Company or the Authorised Participant, by means of the book-entry

units worth a total mark-to-market value of securities corresponding to the price of units, to redeem

the units relating to the application for the securities (the “Redemption”) by the time specified by the

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Management Company in the Attachment of the Trust Deed on the date of acceptance of application

for Redemption.

(ii) An Authorised Participant may broker submission of an application for Redemption of units.

(iii) The Management Company shall present the PCF to the Authorised Participant one (1) business

day prior to the date of acceptance of application for Redemption.

(iv) The Authorised Participant shall present the PCF to the Redemption Applicant for which the

Authorised Participant brokers the submission of application for Redemption.

(v) Notwithstanding the provisions of the first paragraph above, the Management Company may not

respond, as a general rule, to applications for Redemption with regard to the dates and periods in each

of the following items. In such a case, the PCF is not presented.

16) For a period of two business days, beginning two business days prior to the final date of financial

period provided in Article 37 (or, if the final date of financial period falls on a holiday, for a period

of three business days, beginning three business days prior to the final date of financial period)

17) In the event that Management Company determines the Fund cannot be managed according to the

Fund’s investment policies provided in Article 23 due to unavoidable circumstances.

18) For a period of three business days, beginning one business day prior to the ex-distribution or ex-

rights day of any constituents of the Index.

19) For a period of three business days, beginning one business day prior to the rebalance day for

constituents of the Index, or the day the index component ratios of constituent issues are changed.

20) For a period, beginning one business day prior to the delisting day (due to the consolidation and

split of any constituents of the Index) and ending one business day after the Index inclusion day

for new shares (due to such consolidation and split).

21) On the day trading of constituents of the Index is suspended.

22) For a period of five business days prior to the date of trust termination, if this trust terminates.

8) Notwithstanding the provisions of 1) through 7) above, in the event that the Management

Company determines the Fund’s operations may be undermined due to unavoidable circumstances.

(vi) The value of a unit provided in the first paragraph above shall be the Net Asset Value on the date

of acceptance of Redemption applications. In addition, the Authorised Participant may charge the

amount corresponding to the brokerage commission individually set and consumption tax, etc. relating

to the commission.

(vii) A unitholder submitting the application for Redemption in the first paragraph shall request the

Book-entry Institution, etc. with which the account is opened to delete the same number of Book-entry

Units as the number of units relating to the Redemption provided in the first paragraph of Article 48,

and a decrease of the number of units shall be stated or recorded on the account of the Book-entry

Institution, etc. in accordance with the provisions of the Book-entry Act.

(viii) With regard to units to be redeemed, the Trustee shall, pursuant to the instruction for Redemption

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of the Management Company in the first paragraph of Article 48, perform the procedure for

elimination on the book-entry account registry and confirm the elimination provided in Article 49 as

a token of acceptance and deletion of Book-entry Units.

(ix) The Management Company shall adjust the Creation Unit in the event the value of securities to

be delivered exceeds the value of units in integral multiples of Creation Unit to be redeemed.

(x) The Management Company may suspend acceptance of Redemption applications, cancel the

acceptance of Redemption applications, or both, in the event of suspension of trading at a Financial

Instruments Exchange, of a suspension of settlement functions, or of any other unavoidable

circumstance and when the Management Company deems it necessary to do so.

(xi) If, based on the provisions of the preceding paragraph, the acceptance of Redemption applications

is suspended, the value of Redemption the application for which was accepted prior to the suspension

of acceptance and which the Management Company does not cancel shall be calculated in accordance

with the provisions of Paragraph (vi) assuming that the application for Redemption was accepted on

the initial calculation date of the Net Asset Value after the removal of suspension for acceptance.

(xii) Authorised Participants and Redemption Applicants may not cancel the application for

Redemption when and after the Management Company has accepted the application for Redemption.

Article 48 [Instruction, etc. for Redemption]

When an Authorised Participant or a Redemption Applicant presents Book-entry Units in an integral

multiple of one (1) Creation Unit to the Management Company or an Authorised Participant and

submits the application in the first paragraph of the preceding Article and the Management Company

accepts the application, the Management Company shall instruct the Trustee to redeem the units

relating to the application for securities equivalent to the value of the units.

(ii) Authorised Participants and Redemption Applicants shall request Book-entry Institutions to delete

Book-entry Units relating to the Redemption by the deadline specified by the Management Company.

The Trustee, when confirming that the application for deletion of Book-entry Units for Redemption as

described in Paragraph (vii) of the preceding Article has been accepted by the Book-entry Institution,

shall issue an application for book entry of securities subject to the Redemption that belong to the trust

property by means of the method defined by the Book-entry Institution in accordance with the

instruction of the Management Company. In relation to the delivery of securities subject to the

Redemption, the Authorised Participant or the Redemption Applicant shall, as a general rule, deliver

the securities belonging to the trust property on or after the fourth business day from the date of

acceptance of application for Redemption to the Authorised Participant or the Redemption Applicant.

(iii) If the Authorized Participants determine that it will be difficult for the application that is to be

made by the Authorized Participants or the Redemption Applicant for the annulment of all or any part

of the Book-entry Units to be accepted by the deadline designated by the Management Company, the

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Authorized Participants shall immediately notify the Management Company and the Trustee to such

effect.

(iv) If the Management Company, based on the notification in the preceding item, determines that

annulment of all or any part of the Book-entry Units will not be able to be accepted by the Book-entry

Institution within the period prescribed by the Management Company as a period in which there is no

likelihood of hindrance being caused to operations that are in line with the “Basic Investment Policy”

prescribed in Article 23, creation applications for or Redemptions of trust units, or any other operations

of the trust, the Management Company may cancel Redemption applications that have already been

received from Authorized Participants or Redemption Applicants.

(v) In the case of the preceding item, if any damage arises to the trust property or otherwise due to the

annulment of the Book-entry Units not being possible, the Authorized Participants will bear all liability

in respect thereof.

Article 49 [Handling of Redeemed Units]

The Management Company shall, on the business day following the date of application for

Redemption and thereafter, recognise that the same number of units as that of the Book-entry Units to

be deleted through Redemption has become null and void, and the Trustee shall confirm that the Book-

entry Units relating to such units have been deleted on the date of book entry of the Redemption

securities.

Article 50 [Purchase of Units]

Authorised Participants shall purchase units in the cases described in the following items and when

receiving an application from a unitholder as an application that the Management Company receives

by the time set out in the Attachment of the Trust Deed being considered to be the application made

on that date, provided, however, that the application for the case in Item 2 shall be made by two (2)

business days prior to the date of termination of trust.

1. Book-entry Units of less than the exchange trading unit arise as a result of Redemption

2. If delisted in all Financial Instruments Exchanges where the units were listed, based on the

provisions of Article 6.

(ii) The purchase price in the preceding paragraph shall be the Net Asset Value of the day the

application for purchase is accepted.

(iii) Authorised Participants may, when purchasing units pursuant to the provisions of the preceding

two paragraphs, charge the amount corresponding to the commission calculated by multiplying the

ratio defined individually by the Authorised Participant against the Net Asset Value and the

consumption tax, etc. relating to the commission.

(iv) Authorised Participants may suspend purchase of units in the first paragraph based on discussions

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with the Management Company in the event of suspension of trading at a Financial Instruments

Exchange, of suspension of settlement functions, or of any other unavoidable circumstance.

(v) If, based on the provisions of the preceding paragraph, the purchase of units is suspended,

unitholders may withdraw the application for purchase for the day issued prior to the suspension of

purchase. If, however, a unitholder does not withdraw the application for purchase, the purchase price

of the units shall be calculated in accordance with the provisions of Paragraphs (ii) and (iii) assuming

that the application for purchase was accepted on the initial calculation date of Net Asset Value after

the removal of suspension for purchase.

Article 51 [Handling of Units Recorded on Pledge Section]

Payment of income distribution, acceptance of Redemption applications, delivery of redemption

securities, and issuance, etc. of securities at the time of termination of trust relating to the units

recorded on the pledge section of the book-entry account registry of Book-entry Institution, etc. shall

be handled pursuant to the Trust Deed herein as well as to the Civil Code and other respective laws

and regulations.

Article 52 [Partial Cancellation of Trust]

Unitholders may not apply for the implementation of partial cancellation of trust during the term of

this trust with respect to the units attributable to the unitholders.

Article 53 [Early Termination of Trust Deed]

The Management Company, when the number of units is less than 500,000 after the day that is three

(3) years from the date of conclusion of the Trust Deed, or the Management Company recognising that

terminating this trust is for the benefit of the unitholders, or in the event of an unavoidable

circumstance, may with concurrence from the Trustee, cancel the Trust Deed and terminate this trust

during the trust term. In this case, the Management Company shall notify the competent authorities in

advance of its intent for early termination.

(ii) If any of the following events occurs during the trust term, the Management Company may, with

concurrence from the Trustee, cancel the Trust Deed and terminate this trust. In this case, the

Management Company shall notify the competent authorities in advance of its intent for early

termination.

1. When delisted from all Financial Instruments Exchanges on which the units were listed based on

the provisions of Article 6;

2. When the Index is terminated; or

3. When an amendment to the Trust Deed that is determined by the Management Company or the

Trustee to be necessary due to changes in the calculation method of the Index or other changes is

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denied by a written resolution provided in Paragraph (ii) of Article 59.

If the Trust Deed is cancelled for reasons provided in Item 1 above, the procedures for termination of

this trust shall be commenced on such delisting date.

(iii) With respect to the matter provided for in the first paragraph, the Management Company will

make a resolution in writing (the “written resolution”). In such case, the Management Company will

determine in advance the date of the written resolution, the reason for cancellation of the Trust Deed

and other related matters and will give a notice in writing of the written resolution stating those matters

to known unitholders relating to the Trust Deed at least two (2) weeks before the date of the resolution.

(iv) In making the written resolution provided for in the preceding paragraph, unitholders (excluding

the Trustee as unitholder with respect to the unit in this trust when such unit belongs to the

Management Company and trust property of this trust; the same applies hereinafter in this paragraph)

have voting rights corresponding to the number of units held and are entitled to exercise such rights.

If any known unitholders do not exercise their voting rights, such known unitholders will be deemed

to be in favor of the written resolution.

(v) The written resolution provided for in Paragraph (iii) will be voted on by a majority of the

unitholders who are entitled to exercise voting rights and will be passed by two-thirds or more of the

voting rights held by such unitholders.

(vi) The provisions of Paragraph (iii) through the immediately preceding paragraph will not apply

when all unitholders with respect to the Trust Deed express, in writing or by electromagnetic record,

their intention to consent to the Management Company’s proposal for termination to the Trust Deed,

and when this trust is terminated pursuant to the provisions of Paragraph (ii). Additionally, in light of

the conditions of the trust property, the provisions shall not apply, if a truly unavoidable circumstance

arises and there is difficulty in taking measures set out in Paragraph (iii) through the immediately

preceding paragraph.

Article 54 [Redemption, etc. Upon Termination of Trust]

The Management Company, when this trust is to be terminated, shall deliver securities equivalent to

the equity interest of units in the trust property to unitholders that hold such units in integral multiples

of Creation Unit in exchange for the Book-entry Units recorded on the book-entry account registry

(ii) Offices of the Authorised Participant may process the Redemption provided in the preceding

paragraph.

(iii) The value of the units to be redeemed as provided in the first paragraph above shall be the Net

Asset Value on five (5) business days prior to the date of trust termination. In this case, the number of

the specific issue of securities acquired by the unitholders through the Redemption shall be the number

of securities in integral multiples of the exchange trading unit calculated based on the value of such

securities on five (5) business days prior to the date of trust termination.

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(iv) Upon the Redemption provided in the first paragraph above, the Authorised Participants may

charge the amount corresponding to the commission set by the Authorised Participants and the

consumption tax, etc. on the commission to the unitholders.

(v) The Redemption of securities provided in the first paragraph above shall, as a general rule, be

performed starting from the third business day from the business day immediately after the day on

which the Trustee confirms that the application for the annulment of the Book-entry Units to be

redeemed is accepted by the Book-entry Institution.

(vi) The Management Company shall treat the units (including those repurchased by the trust property)

in the same number of the Book-entry Units to be annulled as a result of the Redemption as being

invalidated, and the Trustee confirms that the Book-entry Units relating to such units have been

annulled on the transfer date of the securities subject to the Redemption.

(vii) Notwithstanding the provisions of Paragraphs (i) and (iii), in the case of any of the following

events, the Authorised Participant specified by the Management Company in respect of the termination

of this trust shall, as a general rule, repurchase any of the following based on the value of the units at

the time of the termination of this trust:

1. In the case of the first paragraph above, Book-entry Units in the number remaining after

deducting the number necessary for the Redemption of securities from the number of units held

by the unitholder; and

2. Book-entry Units of less than one (1) Creation Unit provided in the first paragraph above

(including Book-entry Units of less than one (1) exchange trading unit).

(viii) The Authorised Participant provided in Paragraph (vii) may, upon the repurchase pursuant to the

preceding paragraph, charge the amount corresponding to the commission individually set by the

securities company and the consumption tax, etc. on the commission.

Article 55 [Order of Competent Authorities Concerning Trust Deed]

The Management Company shall, when receiving an order for early termination of the Trust Deed

from the competent authorities, comply with such order, cancel the Trust Deed and terminate this trust.

(ii) The Management Company shall, when making revisions to the Trust Deed of this trust based on

the order from the competent authorities, abide by the provisions of Article 59.

Article 56 [Handling Associated with Cancellation of Registration, etc. of the Management Company]

In the event the Management Company is subject to the cancellation of registration by the competent

authorities, is dissolved, or suspends its operations, the Management Company shall cancel this Trust

Deed and terminate this trust.

(ii) Notwithstanding the provisions of the preceding paragraph, if the competent authorities issues an

order that the operations of the Management Company relating to the Trust Deed be substituted by

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another investment trust management company, this trust shall continue between the investment trust

management company and the Trustee, with the exception of when the written resolution set out in

Paragraph (ii) of Article 59 is rejected.

Article 57 [Handling Associated with Transfer and Succession of Business of the Management

Company]

The Management Company may transfer all or part of its business, and in conjunction with this transfer,

may transfer the business concerning this Trust Deed.

(ii) The Management Company may cause all or part of the business to be succeeded as a result of a

company split, and in conjunction with this split, may cause a business pertaining to this trust to be

succeeded.

Article 58 [Handling of Resignation and Dismissal of the Trustee]

The Trustee may, with the consent of the Management Company, resign from its duties. In the event

the trust property suffers significant damage as a result of violation of duties by the Trustee or any

other critical situation arises, the Management Company or a unitholder may apply to the court to have

the Trustee removed. In case the Trustee resigns, or the court has removed the Trustee, the

Management Company shall select a new Trustee pursuant to the provisions of Article 59. Except for

the case of dismissal pursuant to the above-mentioned procedures, the unitholders may not dismiss the

Trustee.

(ii) In the event the Management Company cannot select a new Trustee, the Management Company

shall terminate this Trust Deed and this trust.

Article 59 [Amendments to Trust Deed of Trust]

The Management Company may, with the consent of the Trustee, amend to the Trust Deed of this trust or merge this trust with another trust (which means the “merger of investment trusts with instruction

by the management company” defined in Item 2 of Article 16 of the Act Concerning Investment Trusts

and Investment Companies; the same applies hereinafter), when recognising the need to do so for the

benefit of the unitholders or when an unavoidable circumstance arises, and shall notify the competent

authorities in advance of the intention to amend or merge and the contents thereof. The Trust Deed

may not be amended in any way other than the way provided for in this Article.

(ii) With respect to matters mentioned in the preceding paragraph (including cases where the contents

are material in cases of amendment and excluding cases where the merger has a minor effect on the

interests of the unitholders; collectively, “material amendment to the Trust Deed, etc.”), the

Management Company will make resolutions in writing. In such case, the Management Company will

determine in advance the date of the written resolution, the details of and reason for the material

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amendment to the Trust Deed, etc. and other related matters and will give a notice in writing of the

written resolution stating those matters to the known unitholders relating to the Trust Deed at least two

(2) weeks before the date of the resolution.

(iii) In making the written resolution provided for in the preceding paragraph, unitholders (excluding

the Trustee as unitholder with respect to the units of this trust when such units belong to the

Management Company and trust property of this trust; the same applies hereinafter in this paragraph)

have voting rights corresponding to the number of units held and are entitled to exercise such rights.

If any known unitholders do not exercise their voting rights, such known unitholders will be deemed

to be in favor of the written resolution.

(iv) The written resolution provided for in Paragraph (ii) will be passed by two-thirds or more of the

voting rights held by the unitholders who are entitled to exercise voting rights.

(v) A written resolution will take effect on all unitholders of this trust.

(vi) The provisions of Paragraph (ii) through the immediately preceding paragraph will not apply when

all unitholders with respect to the Trust Deed express, in writing or by electromagnetic record, their

intention to consent to the Management Company’s proposal for material amendment to the Trust

Deed, etc.

(vii) Notwithstanding the provisions of the preceding paragraphs, even if a written resolution for a

merger is passed on this trust, this trust cannot be merged with another trust if a written resolution for

the merger is rejected at one or more of such other trust.

Article 60 [Right to Purchase by Objectors]

When terminating the Trust Deed provided in Article 53 or making a material amendment to the Trust

Deed, etc. provided in the preceding Article, any unitholder who has made an objection to such

termination or material amendment to the Trust Deed, etc. at a written resolution may request the

Trustee to repurchase the units that belong to such unitholder with the trust property. The details of the

right to redemption and matters relating to procedures for redemption claim will be noted in the notice

provided for in Paragraph (iii) of Article 53, or Paragraph (ii) of Article 59.

Article 61 [Restrictions on Request to Disclose Names, Etc. of Other Unitholders]

The unitholders of this trust shall not request the Management Company or the Trustee to disclose the

following matters:

1. names and addresses of other unitholders; and

2. details of units held by the other unitholders.

Article 62 [Public Notice]

Any public notice made by the Management Company will be posted on the website shown below by

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means of electronic notice.

www.blackrock.com/jp/

However, if public notice by such means cannot be made, public notice will be published in Nihon

Keizai Shimbun.

Article 63 [Handling of Doubts Concerning Trust Deed of Trust]

In the event any doubt arises regarding the interpretation of the Trust Deed of this trust, the

Management Company and the Trustee shall solve the doubt based on discussions.

IN WITNESS WHEREOF, the parties hereto have executed the Trust Deed.

October 19, 2015 (Date of conclusion of the Trust Deed)

Management Company

BlackRock Japan Co., Ltd.

Marunouchi Trust Tower Main

1-8-3 Marunouchi. Chiyoda-ku, Tokyo

Trustee

Mitsubishi UFJ Trust and Banking Corporation

1-4-5 Marunouchi, Chiyoda-ku, Tokyo

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Attachment

1. The financial instruments exchange provided in the Attachment of the Trust Deed in Article 6 of

the Trust Deed refers to the following.

The Tokyo Stock Exchange

2. The time specified in the Attachment of the Trust Deed in Paragraph (v) of Article 17, Paragraph (i)

of Article 47 and Paragraph (i) of Article 50 of the Trust Deed refers to 3 p.m.