Fund Description: iShares MSCI Kokusai ETF, formerly iShares MSCI Kokusai Index Fund is an exchange-traded index fund or Index ETF which is a separate investment portfolio of the iShares Trust, an open-end investment management company. INVESTMENT OBJECTIVE: iShares MSCI Kokusai ETF seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI Kokusai Index. INDEX DESCRIPTION: The MSCI Kokusai Index is designed to measure equity market performance in those countries that MSCI Inc., the Fund’s Index Provider, has classified as having developed economies, excluding Japan. As of June 30, 2012, the MSCI Kokusai Index consisted of securities of issuers in the following countries or regions: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom and the United States. Components primarily include consumer staples, energy, financial, healthcare and information technology companies. The components of the Index, and the degree to which these components represent certain industries, may change over time. FUND STRATEGY: The Fund generally will invest at least 80% of its assets in the securities of its Index or in depositary receipts representing securities of the Index. The Fund may invest 20% of its assets in securities not included in its Index, but which believes will help the Fund track its 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 its 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. Using a representative sampling indexing strategy 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. The Fund may invest the remainder of its assets in securities not included in its Index but which believes will help the Fund track its Index, and in futures contracts, options on futures contracts, options and swaps as well as cash and cash equivalents, including shares of money market funds. FUND MANAGEMENT: BlackRock Fund Advisors (BFA) serves as the investment advisor to the Fund.