Fund Description: iShares MSCI Frontier 100 ETF, formerly iShares MSCI Frontier 100 Index Fund, is an exchange-traded index fund or Index ETF which is a separate investment portfolio of iShares Inc., an open-end investment management company. INVESTMENT OBJECTIVE: The iShares MSCI Frontier 100 ETF seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI Frontier Markets 100 Index. INDEX DESCRIPTION: The MSCI Frontier Markets 100 Index is designed to measure equity market performance of a subset of frontier market countries that meet minimum liquidity standards. Frontier market countries are those emerging market countries that are considered to be among the smallest, least mature and least liquid. As of June 30, 2012, the Index consisted of issuers in the following 20 frontier market countries: Argentina, Bangladesh, Croatia, Estonia, Jordan, Kazakhstan, Kenya, Kuwait, Lebanon, Mauritius, Nigeria, Oman, Pakistan, Qatar, Romania, Serbia, Sri Lanka, Ukraine, the United Arab Emirates and Vietnam. Components primarily include energy, financial and telecommunication companies, and may change over time. FUND STRATEGY: The Fund generally invests at least 80% of its assets in the securities of the Index and in depositary receipts representing securities in the Index. The Fund may invest the remainder of its assets in certain futures, options and swap contracts, cash and cash equivalents, including money market funds as well as in securities not included in the Index. A passive or indexing approach is used to try to achieve the Fund’s investment objective. Unlike many investment companies, the Fund does not try to beat the index it tracks and does not seek temporary defensive positions when markets decline or appear overvalued. Indexing may eliminate the chance that the Fund will substantially outperform the Index but also may reduce some of the risks of active management, such as poor security selection. Indexing seeks to achieve lower costs and better after-tax performance by keeping portfolio turnover low in comparison to actively managed investment companies. BlackRock Fund Advisors (BFA), the Investment Adviser, uses a representative sampling indexing strategy to manage the Fund. Representative sampling is an indexing strategy that involves investing in a representative sample of securities that collectively has an investment profile similar to the Index. The securities selected are expected to have, in the aggregate, investment characteristics (based on factors such as market capitalization and industry weightings), fundamental characteristics (such as return variability and yield) and liquidity measures similar to those of the Index. The Fund may or may not hold all of the securities in the Index or the securities of issuers located in all of the countries included in the Index. The Fund may lend securities representing up to one-third of the value of the Fund’s total assets (including the value of the collateral received). FUND MANAGEMENT: BlackRock Fund Advisors (BFA) serves as the investment advisor to the Fund and is primarily responsible for the day-to-day management of the Fund including providing an investment program for the Fund and managing the investment of the Fund’s assets.