BLACKROCK CASH AND FIXED INTEREST FUNDS...BlackRock Cash and Fixed Interest Funds Directors' Report...

BLACKROCK CASH AND FIXED INTEREST FUNDS

BlackRock Enhanced Cash FundARSN 095 987 205

BlackRock Monthly Income FundARSN 095 987 198

BlackRock Money Market FundARSN 088 196 267

Annual Financial Report30 June 2019

BlackRock Investment Management (Australia) Limited13 006 165 975Australian Financial Services Licence No 230523

BlackRock Cash and Fixed Interest FundsAnnual Financial Report - 30 June 2019

Contents

Page

Directors' Report 1

Auditor's Independence Declaration 6

Statements of Profit or Loss and Other Comprehensive Income 7

Statements of Financial Position 9

Statements of Changes in Equity 11

Statements of Cash Flows 12

Notes to the Financial Statements 14

Directors' Declaration 56

Independent Auditor's Report to the Unitholders of BlackRock Cash and Fixed Interest Funds 57

BlackRock Cash and Fixed Interest FundsDirectors' Report

For the year ended 30 June 2019

Directors' Report

The directors of BlackRock Investment Management (Australia) Limited (ABN 13 006 165 975) (the “Responsible Entity”), theResponsible Entity of BlackRock Cash and Fixed Interest Funds (the “Funds”), present their annual report together with thefinancial statements of the Funds, for the year ended 30 June 2019 and the auditor's report thereon. The BlackRock Cash andFixed Interest Funds comprise of BlackRock Enhanced Cash Fund, BlackRock Monthly Income Fund and BlackRock MoneyMarket Fund.

Fund Objectives

BlackRock Enhanced Cash Fund

The Fund aims to outperform its benchmark, the Bloomberg AusBond Bank Bill IndexSM, by 0.40% to 0.50% per annum beforefees and expenses.

BlackRock Monthly Income Fund

The objective of the Fund is to progressively wind up operations and return capital to investors.

BlackRock Money Market Fund

The Fund aims to match the performance of its benchmark, the Bloomberg AusBond Bank Bill IndexSM, before fees.

Principal Activities

The Funds invested in accordance with the provisions of the Funds' Constitutions.

The directors of the Responsible Entity approved the commencement of wind up procedures for BlackRock Monthly IncomeFund on 29 August 2018, in accordance with the Fund's Constitutions.

The Funds did not have any employees during the year ended 30 June 2019 (30 June 2018: Nil).

There were no significant changes in the nature of the Funds' activities during the year ended 30 June 2019 (30 June 2018:Nil).

Directors

The following persons held office as directors of the Responsible Entity during the year or since the end of the year and upto the date of this report:

Director Date appointed Date resigned

M S McCorry Appointed 2 December 2009

A Telfer Appointed 12 December 2013

S Flatman Appointed 28 January 2015

J Collins Appointed 29 July 2015

D Rohe Appointed 27 July 2016 Resigned 6 May 2019

Review and Results of Operations

During the year, the Funds continued to invest funds in accordance with target asset allocations as set out in the governingdocuments of the Funds and in accordance with the provisions of the Funds' Constitutions.

On 29 August 2018, the directors gave approval to wind up BlackRock Monthly Income Fund. As such the Fund is no longer agoing concern.

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Directors' Report (continued)

Review and Results of Operations (continued)

Results

The performance of the Funds, as represented by the results of their operations, was as follows:

BlackRock EnhancedCash Fund

BlackRock MonthlyIncome Fund

Year ended Year ended

30 June2019

30 June2018

30 June2019

30 June2018

$'000 $'000 $ $

Profit/(loss) for the year 3,829 4,567 1,445,052 2,037,107

Distributions paid and payable 3,906 4,510 666,179 2,843,854

BlackRock MoneyMarket Fund

Year ended

30 June2019

30 June2018

$'000 $'000

Profit/(loss) for the year 62,835 52,230

Distributions paid and payable 61,354 53,321

Returns

The table below demonstrates the performance of the Funds as represented by the total return.

Returns*

1 Year 3 Year 5 Year

% p.a. % p.a. % p.a.

BlackRock Enhanced Cash Fund returns 2.21 2.14 2.32

BlackRock Monthly Income Fund returns

Class C 1.94 4.84 3.35

Class D 1.99 5.04 3.56

Class R 1.99 5.03 3.55

BlackRock Money Market Fund returns 2.12 2.04 2.25

* Returns (after fees) are calculated on the assumption that all distributions are reinvested in the Funds, and include theeffect of compounding.

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Reconciliation of Net Asset Value for Unit Pricing Purposes to Financial Reporting Purposes

The key differences between net assets for unit pricing purposes and net assets attributed to unitholders as reported in thefinancial statements prepared under Australian Accounting Standards have been outlined below:



As at As at

30 June2019

30 June2018

30 June2019

30 June2018

$'000 $'000 $ $

Net assets for Unit Pricing Purposes 129,716 226,171 - 85,752,127

Timing differences

Distribution Payable -* -* - (235,372)

Other (25) (26) - 497

Net assets attributable to unitholders as at 30 June 129,691 226,145 - 85,517,252

* Distribution payable is not a reconciling item as this is accrued in the Net assets for unit pricing purposes.


As at

30 June2019

30 June2018

$'000 $'000

Net assets for Unit Pricing Purposes 3,087,217 2,819,170

Timing differences

Distribution Payable -* -*

Other 987 (493)

Net assets attributable to unitholders as at 30 June 3,088,204 2,818,677

* Distribution payable is not a reconciling item as this is accrued in the Net assets for unit pricing purposes.

Significant Changes in State of Affairs

In the opinion of the directors, there were no significant changes in the state of affairs of BlackRock Enhanced Cash Fund andBlackRock Money Market Fund that occurred during the financial year under review.

The directors of the Responsible Entity approved the commencement of wind up procedures BlackRock Monthly Income Fundon 29 August 2018, in accordance with the Fund's Constitutions. The last remaining unitholders of the Fund redeemed theirunitholding on 8 October 2018.

Matters Subsequent to the End of the Financial Year

Except as disclosed in the financial statements, no matter or circumstance has arisen since 30 June 2019 that hassignificantly affected, or may significantly affect:

(i) the operations of the Funds in future financial years, or

(ii) the results of those operations in future financial years, or

(iii) the state of affairs of the Funds in future financial years.

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Likely Developments and Expected Results of Operations

The Funds will continue to be managed in accordance with the investment objectives and guidelines as set out in thegoverning documents of the Funds and in accordance with the provisions of the Funds' Constitutions.

The results of the Funds' operations will be affected by a number of factors, including the performance of investmentmarkets in which the Funds invest. Investment performance is not guaranteed and future returns may differ from pastreturns. As investment conditions change over time, past returns should not be used to predict future returns.

Further information on likely developments in the operations of the Funds and the expected results of those operations havenot been included in this report because the Responsible Entity believes it would be likely to result in unreasonableprejudice to the Funds.

Final proceeds on the redemption of units were paid to unitholders of BlackRock Monthly Income Fund as at 8 October 2018.Prior to the date of signing the annual financial report, the Fund settled all receivables and liabilities outstanding as atbalance sheet date resulting in a nil cash and cash equivalents balance.

Indemnification and Insurance of Officers and Auditor

No insurance premiums are paid for out of the assets of the Funds in regards to insurance cover provided to either theofficers of the Responsible Entity or the auditor of the Funds. So long as the officers of the Responsible Entity act inaccordance with the Funds' Constitutions and the Law, officers remain indemnified out of the assets of the Funds againstlosses incurred while acting on behalf of the Funds. The auditor of the Funds is in no way indemnified out of the assets of theFunds.

Fees Paid and Interests Held in the Funds by the Responsible Entity or its Associates

Fees paid to the Responsible Entity and its associates out of Funds' property during the year are disclosed in Note 11 of thefinancial statements.

No fees were paid out of Funds' property to the directors of the Responsible Entity during the year (2018: Nil). Pursuant toASIC Corporations (Registered Schemes - Differential Fees) Instrument 2017/40, the Responsible Entity may individuallynegotiate fees with certain sophisticated or professional investors.

The number of interests in the Funds held by the Responsible Entity or its associates as at the end of the financial year arealso disclosed in Note 11 of the financial statements.

Interests in the Funds

The movement in units on issue in the Funds during the year is disclosed in Note 6 of the financial statements.

Value of Assets

The value of the Funds' assets and liabilities is disclosed on the Statements of Financial Position and derived using the basisset out in Note 2 of the financial statements.

Environmental Regulation

The operations of the Funds are not subject to any particular or significant environmental regulations under eitherCommonwealth, State or Territory law.

Rounding of Amounts

BlackRock Enhanced Cash Fund and BlackRock Money Market Fund are registered schemes of a kind referred to in ASICCorporations (Rounding in Financial/Directors' Reports) Instrument 2016/191, issued by the Australian Securities andInvestments Commission relating to the “rounding off” of amounts in the directors' report and financial statements. Amountsin the directors' report and the financial statements have been rounded to the nearest thousand in accordance with ASICCorporations (Rounding in Financial/Directors' Reports) Instrument 2016/191, unless otherwise indicated.

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Additional Disclosure

The Funds have applied the relief available in ASIC Corporations (Disclosing Entities) Instrument 2015/839 issued by theAustralian Securities and Investments Commission in the preparation of this report. This class order allows registeredSchemes with a common responsible entity to include multiple financial statements in adjacent columns in a financial report.

The Funds have applied the relief available in ASIC Corporations (Directors' Report Relief) Instrument 2016/188 issued by theAustralian Securities and Investments Commission in the preparation of this report. Accordingly, the additional informationotherwise required to be included in the directors' report has been disclosed in Notes 5, 6 and 11 of the financial statements.

Auditor's Independence Declaration

A copy of the auditor's independence declaration as required under Section 307C of the Corporations Act 2001 is set out onpage 6.

The financial statements were authorised for issue by the directors on 18 September 2019.

This report is made in accordance with a resolution of the directors.

Director

S Flatman

Sydney

18 September 2019

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ykaskhed

Stamp

Liability limited by a scheme approved under Professional Standards Legislation.

Member of Deloitte Asia Pacific Limited and the Deloitte Network.

Deloitte Touche Tohmatsu

ABN 74 490 121 060

550 Bourke Street

Melbourne VIC 3000

GPO Box 78

Melbourne VIC 3001 Australia

Tel: +61 3 9671 7000

Fax: +61 3 9671 7001

www.deloitte.com.au

18 September 2019

The Board of Directors

BlackRock Investment Management (Australia) Limited

Level 26, 101 Collins Street

Melbourne, VIC 3000

Dear Directors

BlackRock Enhanced Cash Fund, BlackRock Monthly Income Fund, and BlackRock Money

Market Fund (collectively "BlackRock Cash and Fixed Interest Funds")

In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following

declaration of independence to the directors of BlackRock Investment Management (Australia)

Limited as Responsible Entity of BlackRock Cash and Fixed Interest Funds.

As lead audit partner for the audit of the financial reports of BlackRock Cash and Fixed Interest Funds

for the financial year ended 30 June 2019, I declare that to the best of my knowledge and belief,

there have been no contraventions of:

(i) the auditor independence requirements of the Corporations Act 2001 in relation to the

audit; and

(ii) any applicable code of professional conduct in relation to the audit.

Yours sincerely

DELOITTE TOUCHE TOHMATSU

Neil Brown

Partner

Chartered Accountants

BlackRock Cash and Fixed Interest FundsStatements of Profit or Loss and Other Comprehensive Income


Statements of Profit or Loss and Other Comprehensive Income




30 June2019

30 June2018

30 June2019

30 June2018

Notes $'000 $'000 $ $

Investment income

Interest income 365 427 1,199 5,464

Distributions from related schemes 11 - - 508,538 1,928,887

Net gains/(losses) on financial instruments held at fairvalue through profit or loss (including FX gains/(losses)) 4 3,832 4,638 1,069,376 638,192

Fee rebates from related schemes 11 - - 181 4,194

Other income - - - 1,651

Total net investment income/(loss) 4,197 5,065 1,579,294 2,578,388

Expenses

Management fees 11 366 491 118,873 518,394

Transaction costs - - - 584

Custody movement fees 2 7 8,990 21,517

Other expenses - - 6,379 786

Total operating expenses 368 498 134,242 541,281

Profit/(loss) for the year 3,829 4,567 1,445,052 2,037,107

Finance costs attributable to unitholders

Distributions to unitholders 5 - - (666,179) (2,843,854)(Increase)/decrease in net assets attributable tounitholders 6 - - (778,873) 806,747

Profit/(loss) for the year 3,829 4,567 - -

Other comprehensive income - - - -

Total comprehensive income for the year 3,829 4,567 - -

The above Statements of Profit or Loss and Other Comprehensive Income should be read in conjunction with theaccompanying notes and the BlackRock Monthly Income Fund has been prepared on non-going concern basis.

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BlackRock Cash and Fixed Interest FundsStatements of Profit or Loss and Other Comprehensive Income


Statements of Profit or Loss and Other Comprehensive Income (continued)


Year ended

30 June2019

30 June2018

Notes $'000 $'000

Investment income

Interest income 6,502 5,545

Distributions from related schemes 11 - -

Net gains/(losses) on financial instruments held at fairvalue through profit or loss (including FX gains/(losses)) 4 56,344 46,706

Fee rebates from related schemes 11 - -

Other income 3 -

Total net investment income/(loss) 62,849 52,251

Expenses

Management fees 11 - -

Transaction costs - -

Custody movement fees 14 21

Other expenses - -

Total operating expenses 14 21


Finance costs attributable to unitholders

Distributions to unitholders 5 - -(Increase)/decrease in net assets attributable tounitholders 6 - -


Other comprehensive income - -

Total comprehensive income for the year 62,835 52,230

The above Statements of Profit or Loss and Other Comprehensive Income should be read in conjunction with theaccompanying notes and the BlackRock Monthly Income Fund has been prepared on non-going concern basis.

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BlackRock Cash and Fixed Interest FundsStatements of Financial Position

As at 30 June 2019

Statements of Financial Position



As at As at

30 June2019

30 June2018

30 June2019

30 June2018

Notes $'000 $'000 $ $

Assets

Cash and cash equivalents 13(b) 47,546 90,468 - 30,320

Financial assets held at fair value through profit or loss 7 82,431 136,072 - 85,253,392

Cash held on collateral 6 22 - 837,720

Receivables 8 31 39 - 203,783

Total assets 130,014 226,601 - 86,325,215

Liabilities

Financial liabilities held at fair value through profit orloss 9 6 - - 402,364

Distribution payable 5 264 377 - 235,372

Payables 10 53 79 - 170,227

Total liabilities (excluding net assetsattributable to unitholders) 323 456 - 807,963

Net assets attributable to unitholders - liability 6 - - - 85,517,252

Net assets attributable to unitholders - equity 6 129,691 226,145 - -

The above Statements of Financial Position should be read in conjunction with the accompanying notes and the BlackRockMonthly Income Fund has been prepared on non-going concern basis.

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BlackRock Cash and Fixed Interest FundsStatements of Financial Position

As at 30 June 2019

Statements of Financial Position (continued)


As at

30 June2019

30 June2018

Notes $'000 $'000

Assets

Cash and cash equivalents 13(b) 1,105,024 1,144,843

Financial assets held at fair value through profit or loss 7 1,987,601 1,678,334

Cash held on collateral - -

Receivables 8 367 356

Total assets 3,092,992 2,823,533

Liabilities

Financial liabilities held at fair value through profit orloss 9 - 29

Distribution payable 5 4,788 4,827

Payables 10 - -

Total liabilities (excluding net assetsattributable to unitholders) 4,788 4,856

Net assets attributable to unitholders - liability 6 - -

Net assets attributable to unitholders - equity 6 3,088,204 2,818,677

The above Statements of Financial Position should be read in conjunction with the accompanying notes and the BlackRockMonthly Income Fund has been prepared on non-going concern basis.

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BlackRock Cash and Fixed Interest FundsStatements of Changes in EquityFor the year ended 30 June 2019

Statements of Changes in Equity




Notes30 June2019

30 June2018

30 June2019

30 June2018

$'000 $'000 $'000 $'000

Total equity at the beginning of the financial year 226,145 - 2,818,677 -

Reclassification due to AMIT tax regimeimplementation* - 219,014 - 2,791,895

Comprehensive income for the year

Profit/(loss) for the year 3,829 4,567 62,835 52,230

Other comprehensive income - - - -

Total comprehensive income for the year 3,829 4,567 62,835 52,230

Transactions with unitholders

Applications 6 7,184 56,182 2,510,581 1,698,428

Redemptions 6 (107,580) (53,646) (2,299,054) (1,719,196)

Units issued upon reinvestment of distributions 6 4,019 4,538 56,519 48,641

Distributions paid and payable 5 (3,906) (4,510) (61,354) (53,321)

Total transactions with unitholders (100,283) 2,564 206,692 25,448

Total equity at the end of the financial year 129,691 226,145 3,088,204 2,818,677

* Effective from 1 July 2017, the units in BlackRock Enhanced Cash Fund and BlackRock Money Market Fund have beenreclassified from financial liability to equity. Refer to Note 2 for further details.


Year ended

30 June2019

30 June2018

$ $

Total equity at the beginning of the financial year - -

Profit/(loss) for the year - -

Other comprehensive income for the year - -

Total comprehensive income for the year - -

Transactions with owners in their capacity as owners - -

Total equity at the end of the financial year - -

Under Australian Accounting Standards, net assets attributable to unitholders of BlackRock Monthly Income Fund areclassified as a liability rather than equity. As a result there was no equity at the start or end of the year.

The above Statements of Changes in Equity should be read in conjunction with the accompanying notes and the BlackRockMonthly Income Fund has been prepared on non-going concern basis.

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BlackRock Cash and Fixed Interest FundsStatements of Cash Flows


Statements of Cash Flows




30 June2019

30 June2018

30 June2019

30 June2018

Notes $'000 $'000 $ $

Cash flows from operating activities

Proceeds from sale of financial instruments held at fairvalue through profit or loss 362,552 433,330 85,720,437 60,833,974

Purchase of financial instruments held at fair valuethrough profit or loss (307,454) (398,973) (786) (52,722,680)

Transaction costs - - - (584)

Interest received 2,768 2,463 1,041,209 1,691,289

Distributions received from related schemes - - 670,185 1,821,554

Fee rebates from related schemes received - - 346 5,267

Other income received - - - 1,653

Management fees paid (390) (473) (192,899) (525,631)

Operating expenses paid (2) (7) (15,370) (22,303)

Net cash inflow/(outflow) from operating activities 13(a) 57,474 36,340 87,223,122 11,082,539

Cash flows from financing activities

Proceeds from applications by unitholders 7,184 56,182 1,958,863 13,803,268

Payments for redemptions by unitholders (107,580) (53,646) (88,436,006) (19,798,824)

Distributions paid - - (776,563) (5,441,589)

Net cash inflow/(outflow) from financing activities (100,396) 2,536 (87,253,706) (11,437,145)

Net increase/(decrease) in cash and cash equivalents (42,922) 38,876 (30,584) (354,606)

Cash and cash equivalents at the beginning of the year 90,468 51,592 30,320 506,068

Effects of foreign currency exchange rate changes oncash and cash equivalents - - 264 (121,142)

Cash and cash equivalents at the end of the year 13(b) 47,546 90,468 - 30,320

Non cash operating activities 13(a) - - 1,741 77,681

Non cash financing activities 13(c) 4,019 4,538 124,988 1,009,262

The above Statements of Cash Flows should be read in conjunction with the accompanying notes and the BlackRock MonthlyIncome Fund has been prepared on non-going concern basis.

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BlackRock Cash and Fixed Interest FundsStatements of Cash Flows


Statements of Cash Flows (continued)


Year ended

30 June2019

30 June2018

Notes $'000 $'000

Cash flows from operating activities

Proceeds from sale of financial instruments held at fairvalue through profit or loss 7,668,914 7,863,729

Purchase of financial instruments held at fair valuethrough profit or loss (7,925,677) (7,587,699)

Transaction costs - -

Interest received 10,301 5,203

Distributions received from related schemes - -

Fee rebates from related schemes received - -

Other income received - -

Management fees paid - -

Operating expenses paid (14) (21)

Net cash inflow/(outflow) from operating activities 13(a) (246,472) 281,212

Cash flows from financing activities

Proceeds from applications by unitholders 2,510,581 1,698,428

Payments for redemptions by unitholders (2,299,054) (1,719,196)

Distributions paid (4,874) (4,363)

Net cash inflow/(outflow) from financing activities 206,653 (25,131)

Net increase/(decrease) in cash and cash equivalents (39,819) 256,081

Cash and cash equivalents at the beginning of the year 1,144,843 888,762

Effects of foreign currency exchange rate changes oncash and cash equivalents - -

Cash and cash equivalents at the end of the year 13(b) 1,105,024 1,144,843

Non cash operating activities 13(a) - -

Non cash financing activities 13(c) 56,519 48,641

The above Statements of Cash Flows should be read in conjunction with the accompanying notes and the BlackRock MonthlyIncome Fund has been prepared on non-going concern basis.

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BlackRock Cash and Fixed Interest FundsNotes to the Financial Statements


1 General Information

These financial statements cover BlackRock Enhanced Cash Fund, BlackRock Monthly Income Fund and BlackRock MoneyMarket Fund (the “Funds”) as individual entities. BlackRock Enhanced Cash Fund and BlackRock Monthly Income Fund wereconstituted on 21 February 2001 and BlackRock Money Market Fund was constituted on 26 May 1988. BlackRock EnhancedCash Fund and BlackRock Money Market Fund will terminate on the eightieth anniversary of the day the Funds commenced,unless terminated in accordance with the provisions of the Funds' Constitutions.

The directors of the Responsible Entity of BlackRock Monthly Income Fund approved the commencement of wind upprocedures on 29 August 2018, in accordance with the Fund's Constitution.

The Responsible Entity of the Funds is BlackRock Investment Management (Australia) Limited (the “Responsible Entity”). TheResponsible Entity's registered office is Level 26, 101 Collins Street, Melbourne, VIC 3000.

The financial statements were authorised for issue by the directors on 18 September 2019. The directors of the ResponsibleEntity have the power to amend and reissue the financial statements.

The financial statements are presented in the Australian currency.

2 Summary of Significant Accounting Policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These policieshave been consistently applied to all years presented, unless otherwise stated in the following text.

(a) Statement of Compliance and Basis of Preparation

These general purpose financial statements of BlackRock Enhanced Cash Fund and BlackRock Money Market Fund have beenprepared in accordance with Australian Accounting Standards and other authoritative pronouncements issued by theAccounting Standards Board and the Corporations Act 2001 in Australia. The Funds are for-profit unit trusts for the purposeof preparing the financial statements.

These general purpose financial statements of BlackRock Monthly Income Fund have been prepared in accordance withAustralian Accounting Standards and other authoritative pronouncements issued by the Accounting Standards Board as theyapply on a non-going concern basis and the Corporations Act 2001 in Australia. The Fund is for-profit unit trusts for thepurpose of preparing the financial statements.

The financial statements are prepared on the basis of historical costs, except for financial assets and financial liabilities heldat fair value through profit or loss, that are measured at fair value.

The Statements of Financial Position are presented on a liquidity basis. Assets and liabilities are presented in decreasingorder of liquidity and are not distinguished between current and non-current. All balances are expected to be recovered orsettled within twelve months, except for investments in financial assets at fair value through profit or loss and net assetsattributable to unitholders. The amount expected to be recovered or settled within twelve months after the end of eachreporting period cannot be reliably determined.

On 5 May 2016, a new tax regime applying to Managed Investment Trusts (“MITs”) was established under the Tax LawsAmendment (New Tax System for Managed Investment Trusts) Act 2016. The Attribution Managed Investment Trust (“AMIT”)regime allows MITs that meet certain requirements to make an irrevocable choice to be an AMIT. In order to allow the Fundto elect into the AMIT tax regime, the Funds’ Constitution has been amended and the other conditions to adopt the AMIT taxregime have been met effective 1 July 2017. The Responsible Entity is therefore no longer contractually obligated to paydistributions. Consequently, the units in BlackRock Enhanced Cash Fund and BlackRock Money Market Fund have beenreclassified from a financial liability to equity on 1 July 2017.

(i) Compliance with International Financial Reporting Standards

The financial statements of BlackRock Enhanced Cash Fund and BlackRock Money Market Fund also comply with InternationalFinancial Reporting Standards as issued by the International Accounting Standards Board.

The financial statements of BlackRock Monthly Income Fund also comply with International Financial Reporting Standards asissued by the International Accounting Standards Board as they apply on a non-going concern basis.

(ii) New and amended standards adopted by the Funds

The Funds have adopted the following new accounting standards and interpretations, which became effective for thefinancial year beginning 1 July 2018. The adoption did not have material impact on the current period and is not likely toaffect future periods.

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2 Summary of Significant Accounting Policies (continued)

(a) Statement of Compliance and Basis of Preparation (continued)

(ii) New and amended standards adopted by the Funds (continued)

(a) AASB 9 Financial Instruments (and applicable amendments), (effective from 1 January 2018)

AASB 9 Financial Instruments addresses the classification, measurement and derecognition of financial assets andfinancial liabilities. It has now also introduced revised rules around hedge accounting. The Responsible Entity hasassessed the impact of AASB 9 on the Funds' financial statements and determined:

Fair value remains the most relevant information in asset performance evaluation for debt securities. Theclassification of debt instruments at fair value through profit or loss continues and will not result in reclassificationto amortised cost or fair value through other comprehensive income.

All other financial assets and liabilities continue to be held at fair value through profit or loss.

The derecognition rules have not changed from the previous requirements, and the Funds do not apply hedgeaccounting. The adoption of AASB 9 does not have a significant impact on the recognition and measurement of theFunds’ financial instruments.

There are no expected credit losses included in receivables as at 30 June 2019 (30 June 2018: Nil).

(b) AASB 15 Revenue from Contracts with Customers (effective from 1 January 2018)

The AASB has issued a new standard for the recognition of revenue. This replaces AASB 118 which covers contracts forgoods and services and AASB 111 which covers construction contracts.

The new standard is based on the principle that revenue is recognised when control of a good or service transfers to acustomer - so the notion of control replaces the existing notion of risks and rewards.

The Funds' main sources of income are interest, dividends and gains on financial instruments held at fair value. All ofthese are outside the scope of the new revenue standard.

There are no other new standards, interpretations or amendments to existing standards that are effective for the first timefor the financial year beginning 1 July 2018 that would be expected to have a material impact on the Funds.

Going concern

A going concern basis has not been applied to the financial statements of BlackRock Monthly Income Fund as the Fund is inthe process of being wound up. The assets and liabilities of the Fund have been assessed by the directors on a net realisablebasis. Based on that assessment, the directors do not consider the carrying value of the balances to be materially different tothe recoverable amounts.

(b) Financial Instruments

(i) Classification

The Funds' investments are classified as at fair value through profit or loss. They comprise:

Derivative financial instruments such as futures, forward foreign exchange contracts, options and swaps. The Funds donot designate any derivatives as hedges in a hedging relationship.

Investments in listed equities, listed unit trusts, unlisted unit trusts, interest bearing securities and money marketsecurities.

Financial assets and financial liabilities held at fair value through profit or loss are those that are managed and theirperformance evaluated on a fair value basis in accordance with the Funds' documented investment strategy. The Funds'policy is for the Responsible Entity to evaluate the information about these financial instruments on a fair value basistogether with other related financial information.

Short sales are classified as financial liabilities at fair value through profit or loss. Short sales are where borrowedsecurities are sold in anticipation of a decline in the market value of those securities and are made or may be used forvarious arbitrage transactions.

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(b) Financial Instruments (continued)

(ii) Recognition/derecognition

The Funds recognise financial assets and financial liabilities on the date they become party to the contractual agreement(trade date) and recognise changes in fair value of the financial assets or financial liabilities from this date.

Investments are derecognised when the right to receive cash flows from the investments has expired or the Funds havetransferred substantially all risks and rewards of ownership.

(iii) Measurement

Financial assets and liabilities held at fair value through profit or loss

Financial assets and liabilities held at fair value through profit or loss are measured initially at fair value excluding anytransaction costs that are directly attributable to the acquisition or issue of the financial asset or financial liability.Transaction costs on financial assets and financial liabilities at fair value through profit or loss are expensed immediately.Subsequent to initial recognition, all instruments held at fair value through profit or loss are measured at fair value withchanges in their fair value recognised in the Statements of Profit or Loss and Other Comprehensive Income.

Fair value in an active market

The fair value of financial assets and liabilities traded in active markets is based on their quoted market prices at the endof the reporting date without any deduction for estimated future selling costs. The quoted market price used for financialassets and financial liabilities held by the Funds is the last traded market price.

Fair value in an inactive or unquoted market

The fair value of financial assets and liabilities that are not traded in an active market is determined using valuationtechniques. These include the use of recent arm's length market transactions, reference to the current fair value of asubstantially similar instrument, discounted cash flow techniques, option pricing models or any other valuation techniquethat provides a reliable estimate of prices obtained in actual market transactions.

Accordingly, there may be a difference between the fair value at initial recognition and amounts determined using avaluation technique. If such a difference exists, the Funds recognise the difference in the Statements of Profit or Lossand Other Comprehensive Income to reflect a change in factors, including time, that market participants would considerin setting a price.

Investments in other unlisted unit trusts are recorded at the net asset value per unit as reported by the ResponsibleEntity of such funds.

(c) Offsetting Financial Instruments

Financial assets and liabilities are reported on a gross basis in the Statements of Financial Position. Where there is a legallyenforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset andsettle the liability simultaneously on default or in the ordinary course of business, the financial assets and liabilities will beoffset and reported on a net basis in notes to the financial statements.

(d) Net Assets Attributable to Unitholders

BlackRock Enhanced Cash Fund and BlackRock Money Market Fund

Units are redeemable at the unitholders' option, however, applications and redemptions may be suspended by theResponsible Entity if it is in the best interests of the unitholders.

The units can be put back to the Funds at any time for cash based on the redemption price, which is equal to a proportionateshare of the Funds' net asset value attributable to the unitholders.

The units are carried at the redemption amount that is payable at balance sheet date if the holder exercises the right to putthe unit back to the Funds. This amount represents the expected cash flows on redemption of these units.

- 16 -




(d) Net Assets Attributable to Unitholders (continued)

Units are classified as equity when they satisfy the following criteria under AASB 132 Financial instruments: Presentation:

the puttable financial instrument entitles the holder to a pro-rata share of net assets in the event of the Funds'liquidation;

the puttable financial instrument is in the class of instruments that is subordinate to all other classes of instruments andclass features are identical;

the puttable financial instrument does not include any contractual obligations to deliver cash or another financial asset,or to exchange financial instruments with another entity under potentially unfavorable conditions to the Funds, and it isnot a contract settled in the Funds' own equity instruments; and

the total expected cash flows attributable to the puttable financial instrument over the life are based substantially onthe profit or loss.

The Funds' units have been classified as equity as they satisfied all the above criteria.


Units are redeemable at the unitholders' option and are therefore classified as financial liabilities. The units can be put backto the Fund at any time for cash equal to a proportionate share of the Fund's net asset value. The fair value of redeemableunits is the residual interest that is payable at the end of the reporting date if unitholders exercised their right to redeemunits in the Fund. The Fund's redemption unit price is based on the last traded market price for the purpose of determiningthe net asset value per unit for applications and redemptions.

(e) Cash and Cash Equivalents

Cash and cash equivalents may include cash on hand, deposits held at call with financial institutions, other short-term, highlyliquid investments with original maturities of three months or less that are readily convertible to known amounts of cash andwhich are subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts and cash will be nettedoff on the Statements of Financial Position if both are present.

Payments and receipts relating to the purchase and sale of investment securities are classified as cash flows from operatingactivities as movements in the fair value of these securities represent the Funds' main income generating activity.

(f) Margin Accounts

Margin accounts comprise of cash held for derivative transactions and short sales. The cash is held by the broker and is onlyavailable to meet margin calls. Unrestricted margin account balances and restricted margin accounts balances, where thederivative transactions' original maturities are within three months, are classified as cash and cash equivalents. Restrictedmargin accounts where the derivative transactions' original maturities are not within three months are classified as cash heldon collateral.

(g) Investment Income and Expenses

Interest income and expenses are recognised in the Statements of Profit or Loss and Other Comprehensive Income for allinterest bearing securities using the effective interest method. Interest income on assets held at fair value through profit orloss is included in the net gains/(losses) on financial instruments. Other changes in fair value for such instruments arerecorded in accordance with the policies described in Note 2(b).

The effective interest method is a method of calculating the amortised cost of a financial asset or financial liability and ofallocating the interest income or interest expense over the relevant period. The effective interest rate is the rate thatexactly discounts estimated future cash payments or receipts throughout the expected life of the financial instrument, or ashorter period where appropriate, to the net carrying amount of the financial asset or liability. When calculating theeffective interest rate, the Funds estimate cash flows, considering all contractual terms of the financial instrument (forexample, prepayment options), but do not consider future credit losses.

The calculation includes all fees and points paid or received between the parties to the contract that are an integral part ofthe effective interest rate, transaction costs and all other premiums or discounts.

- 17 -




(g) Investment Income and Expenses (continued)

Dividend income is recognised on the ex-dividend date. The Funds may incur withholding tax imposed by certain countries oninvestment income. Such income is recorded net of withholding tax in the Statements of Profit or Loss and OtherComprehensive Income. If a portion of the foreign withholding taxes is reclaimable, it is recorded as an asset.

Trust distributions are recognised on an entitlements basis.

Dividends declared on securities sold short are recorded as a dividend expense on the ex-dividend date.

(h) Expenses

All expenses, including management fees and performance fees, are recognised in the Statements of Profit or Loss and OtherComprehensive Income on an accruals basis.

(i) Income Tax

Under current legislation, the Funds are not subject to income tax provided the taxable income of the Funds are attributedeither by way of cash or reinvestment (i.e. unitholders are presently entitled to the income of the Funds).

The benefit of imputation credits and foreign tax paid are passed on to unitholders.

(j) Distributions to Unitholders


In accordance with the Funds' Constitutions, the Funds attribute their taxable income, and any other amounts determined bythe Responsible Entity, to unitholders by cash or reinvestment. The distributions are recognised in the Statements of Changesin Equity as distributions paid and payable.


In accordance with the Funds' Constitution, the Fund attributes its taxable income, and any other amounts determined bythe Responsible Entity, to unitholders by cash or reinvestment. The distributions are recognised in the Statements of Profitor Loss and Other Comprehensive Income as finance costs attributable to unitholders.

(k) Increase/Decrease in Net Assets Attributable to Unitholders


Movements in net assets attributable to unitholders are recognised in the Statements of Changes in Equity for the currentyear ended 30 June 2019.


Non-distributable income is included in net assets attributable to unitholders. Movements in net assets attributable tounitholders are recognised in the Statement of Profit or Loss and Other Comprehensive Income as increase/decrease in netasset attributable to unitholders.

(l) Foreign Currency Translation

(i) Functional and presentation currency

Items included in the Funds' financial statements are measured using the currency of the primary economic environmentin which it operates (the “functional currency”). This is the Australian Dollar, which reflects the currency of the economyin which the Funds compete for funds and is regulated. The Australian Dollar is also the Funds' presentation currency.

(ii) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dateof the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from thetranslations at year end exchange rates of monetary assets and liabilities denominated in foreign currencies arerecognised in the Statements of Profit or Loss and Other Comprehensive Income.

- 18 -




(l) Foreign Currency Translation (continued)

(ii) Transactions and balances (continued)

The Funds do not isolate that portion of gains or losses on securities and derivative financial instruments which is due tochanges in foreign exchange rates from that which is due to changes in the market price of securities. Such fluctuationsare included with the net gains or losses on financial instruments at fair value through profit or loss.

Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at thedate when the fair value was determined. Translation differences on assets and liabilities carried at fair value arereported as part of the fair value gain or loss.

(m) Receivables

Receivables may include amounts for dividends, interest, trust distributions, amounts due from brokers and applicationsreceivable. Dividends and trust distributions are accrued when the right to receive payment is established. Interest isaccrued at the end of the reporting date from the time of the last payment using the effective interest rate method.Amounts due from brokers represent receivables for securities that have been contracted for but not yet delivered by theend of the reporting date. Applications receivable are recorded when the applications are made for units in the Funds withthe consideration yet to be received as at the end of the reporting date.

Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible are written offby reducing the carrying amount directly. An allowance account (provision for impairment of trade receivables) is used whenthere is objective evidence that the Funds will not be able to collect all amounts due according to the original terms of thereceivables. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financialreorganisation, and default or delinquency in payments (more than 30 days overdue) are considered indicators that the tradereceivable is impaired. The amount of the impairment allowance is the difference between the asset's carrying amount andthe present value of estimated future cash flows, discounted at the original effective interest rate. Cash flows relating toshort term receivables are not discounted if the effect of discounting is immaterial.

The amount of the impairment loss is recognised in the Statements of Profit or Loss and Other Comprehensive Income withinother expenses. When a trade receivable for which an impairment allowance had been recognised becomes uncollectible in asubsequent period, it is written off against the allowance account. Subsequent recoveries of amounts previously written offare credited against other expenses in the Statements of Profit or Loss and Other Comprehensive Income.

(n) Payables

Payables include liabilities and accrued expenses owing by the Funds and redemptions payable which are unpaid as at theend of the reporting period.

Trades are recorded on trade date, and normally settled within three business days. Purchases of financial instruments thatare unsettled at reporting date are included in payables. Redemptions payable are recognised when the unitholder returnstheir holdings back into the Funds foregoing all rights associated with the units, with the payment yet to be released.

The distribution amount payable to unitholders as at reporting date is recognised separately on the Statements of FinancialPosition when unitholders are presently entitled to the distributable income under the Funds' Constitutions.

(o) Applications and Redemptions

Applications received for units in the Funds are recorded net of any entry fees payable prior to the issue of units in theFunds. Redemptions from the Funds are recorded gross of any exit fees payable after the cancellation of units redeemed.

Unit redemption prices are determined by reference to the net assets for unit pricing purposes of the Funds, divided by thenumber of units on issue at or immediately prior to close of business each day. Applications and redemptions of units areprocessed simultaneously.

- 19 -




(p) Goods and Services Tax (GST)

The GST incurred on the costs of various services provided to the Funds by third parties such as custodial services andinvestment management fees have been passed onto the Funds. The Funds qualify for Reduced Input Tax Credits (RITC)hence, investment management fees, custodial fees and other expenses have been recognised in the Statements of Profit orLoss and Other Comprehensive Income net of the amount of GST recoverable from the Australian Taxation Office (ATO).Accounts payable and accrued expenses are inclusive of GST. The net amount of GST recoverable from the ATO is included inreceivables in the Statements of Financial Position. Cash flows relating to GST are included in the Statements of Cash Flowson a gross basis.

(q) New Accounting Standards and Interpretations

There are no standards that are not yet effective and that are expected to have a material impact on the Funds in thecurrent or future reporting periods and on foreseeable future transactions.

(r) Use of Estimates and Critical Accounting Judgments

The Funds make estimates and assumptions that affect the reported amounts of assets and liabilities within the nextfinancial year. Estimates are continually evaluated and based on historical experience and other factors, includingexpectations of future events that are believed to be reasonable under the circumstances.

For the majority of the Funds' financial instruments, quoted market prices are readily available. However, certain financialinstruments, for example, over the counter derivatives or unquoted securities are fair valued using valuation techniques.Where valuation techniques (for example, pricing models) are used to determine fair values, they are validated andperiodically reviewed by experienced personnel of the Responsible Entity, independent of the area that created them.Models are calibrated by back-testing to actual transactions to ensure that outputs are reliable.

Models use observable data, to the extent practicable. However, areas such as credit risk (both own and counterparty),volatilities and correlations require management to make estimates. Changes in assumptions about these factors could affectthe reported fair value of financial instruments.

For certain other financial instruments, including amounts due from/to brokers and payables, the carrying amountsapproximate fair value due to the immediate or short term nature of these financial instruments.

(s) Rounding of Amounts

BlackRock Enhanced Cash Fund and BlackRock Money Market Fund are registered schemes of a kind referred to in ASICCorporations (Rounding in Financial/Directors' Reports) Instrument 2016/191, issued by the Australian Securities andInvestments Commission relating to the “rounding off” of amounts in the directors' report and financial statements. Amountsin the directors' report and financial statements have been rounded to the nearest thousand in accordance with ASICCorporations (Rounding in Financial/Directors' Reports) Instrument 2016/191, unless otherwise indicated.

(t) Cash Held on Collateral

Cash held on collateral includes restricted margin accounts where the derivative transactions’ original maturities are notwithin three months as well as restricted cash for short sales. Short positions are taken on securities which have relativelypoor return expectations. To facilitate settlement, securities are borrowed with collateral requirements. These requirementsare satisfied with cash and/or other securities. Cash used to satisfy collateral requirements is disclosed as cash held oncollateral on the Statement of Financial Position.

3 Financial Risk Management

The Funds' activities expose them to a variety of financial risks: credit risk, liquidity risk, and market risk (including pricerisk, currency risk and interest rate risk). The Funds' overall risk management program focuses on ensuring compliance withthe Funds' Product Disclosure Statements and seeks to maximise the returns derived for the level of risk to which the Fundsare exposed. The Funds may use derivative financial instruments to moderate and create certain risk exposures. Financialrisk management is carried out by the Investment Risk Management Working Group (IRMWG) under policies approved by theBoard of Directors of the Responsible Entity (the “Board”).

- 20 -



3 Financial Risk Management (continued)

The Funds use different methods to measure different types of risk to which they are exposed. These methods include Valueat Risk (“VaR”) analysis in the case of interest rate, foreign exchange and other price risks and ratings analysis for credit risk.VaR analysis is explained in Note 3(b).

(a) Market Risk

(i) Price Risk

The Funds are exposed to price risk. This arises from investments held by the Funds for which prices in the future areuncertain. They are classified in the Statements of Financial Position as fair value through profit or loss. Where non-monetaryfinancial instruments are denominated in currencies other than the Australian Dollar, the price in the future will alsofluctuate because of changes in foreign exchange rates. Note 3(a)(ii) below sets out how this component of price risk ismanaged and measured. All securities investments present a risk of loss of capital. Except for equities sold short andderivative instruments, the maximum risk resulting from financial instruments is determined by the fair value of the financialinstruments. Possible losses from equities sold short can be unlimited.

Market risk is managed and monitored by the Responsible Entity on a portfolio basis, with risks managed through ensuringthat investment activities are undertaken in accordance with the Funds' investment model which is reviewed and updatedregularly.

The Responsible Entity continuously monitors the Funds' holdings relative to the recommended portfolio, and the exposure ofthe Funds are monitored to ensure that it remains within designated ranges or asset allocation constraints, taking intoaccount any derivative position being used to manage risks.

In addition, the IRMWG regularly reviews the Funds to ensure the Funds are following the appropriate investment model,their portfolio is in accordance with its stated guidelines and restrictions, and the performance of the Funds remains inexpected bounds.

The summarised VaR analysis in Note 3(b) explains how the risk is measured and summarises the potential exposure of theFunds' net assets attributable to unitholders.

At the reporting date, the notional principal amounts of derivative financial instruments held by the Funds were as follows:


30 June 2019 30 June 2018$'000 $'000

Notional Principal Amount Fair Value Notional Principal Amount Fair Value

Asset Liability Net Asset Liability Net

Futures -Domestic 28,730 (28,730) - (2) 34,293 (116,620) (82,327) 17


30 June 2019 30 June 2018$ $



Futures -Domestic - - - - - (8,786,480) (8,786,480) (104,741)

Futures -International - - - - - (49,940,643) (49,940,643) (172,716)

Forwardforeignexchangecontracts - - - - 12,905,004 (12,860,452) 44,552 44,552

Swaps -International - - - - 12,857,820 (12,857,820) - 10,663

- 21 -




(a) Market Risk (continued)

(i) Price Risk (continued)


30 June 2019 30 June 2018$'000 $'000



Futures -Domestic - - - - - (392,000) (392,000) (29)

(ii) Foreign Exchange Risk


The direct investments held by the Funds do not have any direct exposure to foreign exchange risk. This disclosure has notbeen made on a look through basis for investments held directly through underlying investments. The disclosure of foreignexchange risk may not present the true foreign exchange risk profile of the Funds where the underlying investments havesignificant exposure to foreign exchange risk.



The Fund holds monetary and non monetary assets denominated in currencies other than the Australian Dollar. The foreignexchange risk relating to non monetary assets and liabilities is a component of price risk. Foreign exchange risk arises as thevalue of monetary securities denominated in other currencies will fluctuate due to changes in exchange rates.

The summarised VaR analysis in Note 3(b) explains how the risk is measured and summarises the potential exposure of theFund's net assets attributable to unitholders.

Foreign exchange risk is managed using forward foreign exchange contracts and other derivatives in accordance with Fundguidelines and restrictions. Daily monitoring is undertaken to ensure instruments used and exposures created are consistentwith the investment strategy and objectives of the Fund. For accounting purposes, the Fund does not designate anyderivatives as hedges in a hedging relationship, and hence these derivative financial instruments are classified as at fairvalue through profit or loss.

This disclosure for the Fund has not been made on a look through basis for investments held indirectly through underlyingfund. The disclosure of foreign exchange risk may not present the true foreign exchange risk profile of the Fund where theunderlying fund has a significant exposure to foreign exchange risk.

- 22 -





(ii) Foreign Exchange Risk (continued)

The following tables summarise the BlackRock Monthly Income Fund's assets and liabilities, monetary and non-monetary,which are denominated in different currencies:


UnitedStatesDollar

EuropeanEuro

BritishPound

AustralianDollar

OtherCurrencies Total

30 June 2018 A$ A$ A$ A$ A$ A$

Assets

Cash and cash equivalents 7,144 1,639 543 20,000 994 30,320

Financial assets held at fair value throughprofit or loss* 7,864,050 23 4,193,960 73,195,359 - 85,253,392

Cash held on collateral** 22,242 40,082 - 773,130 10,557 846,011

Receivables 3 - - 203,780 - 203,783

Total assets 7,893,439 41,744 4,194,503 74,192,269 11,551 86,333,506

Liabilities

Financial liabilities held at fair valuethrough profit or loss* 236,878 54,509 - 104,740 6,237 402,364

Cash held on collateral** - - 8,291 - - 8,291

Distribution payable - - - 235,372 - 235,372

Payables - - - 170,227 - 170,227

Total liabilities (excluding net assetsattributable to unitholders) 236,878 54,509 8,291 510,339 6,237 816,254

Net assets attributable to unitholders -liability 7,656,561 (12,765) 4,186,212 73,681,930 5,314 85,517,252

Increase/(decrease) in exposure fromcurrency derivatives (8,290,980) 6,297 (4,295,003) 12,579,686 - -

Total foreign currency exposure (634,419) (6,468) (108,791) 86,261,616 5,314 85,517,252

* Includes unit trust holdings and interest bearing securities.

* Includes derivatives, forward foreign exchange contracts which have been classified as Australian Dollar exposure in theabove analysis.

** Where margin calls on margin accounts and cash held on collateral can only be made to counterparties in AustralianDollars, the balances are disclosed separately in the currency exposure tables and are aggregated in the Statements ofFinancial Position

- 23 -





(iii) Interest Rate Risk

The Funds' interest bearing financial assets and financial liabilities expose them to risks associated with the effects offluctuations in the prevailing levels of market interest rates on its financial position and cash flows.

The Funds are exposed to cash flow interest rate risk on financial instruments with variable interest rates. Financialinstruments with fixed rates expose the Funds to fair value interest rate risk.

Interest rate risk is mitigated through ensuring activities are transacted in accordance with mandates, overall investmentstrategy and within approved limits.


The disclosure for the Funds has not been made on a look through basis for investments held indirectly through theunderlying fund. The disclosure of interest rate risk may not present the true interest rate risk profile of the Funds wherethe underlying fund has significant exposure to interest rate risk.

The following tables summarise the Funds' exposure to interest rate risks. It includes the Funds' assets and liabilities at fairvalues.


30 June 2019Floating

interest rateFixed

interest rateNon-interest

bearing Total

$'000 $'000 $'000 $'000

Financial assets

Cash and cash equivalents 47,546 - - 47,546

Financial assets held at fair value through profit or loss

Futures 4 - - 4

Interest bearing securities 29,709 4,865 - 34,574

Money market securities 47,853 - - 47,853

Cash held on collateral 6 - - 6

Receivables - - 31 31

Total assets 125,118 4,865 31 130,014

Financial liabilities

Futures 6 - - 6

Distribution payable - - 264 264

Payables - - 53 53

Total liabilities 6 - 317 323

Net assets attributable to unitholders - - 129,691 129,691

- 24 -





(iii) Interest Rate Risk (continued)



interest rateFixed


bearing Total

$'000 $'000 $'000 $'000

Financial assets



Futures 17 - - 17


Money market securities 79,439 - - 79,439

Cash held on collateral 22 - - 22


Total assets 220,133 6,429 39 226,601


Distribution payable - - 377 377

Payables - - 79 79

Total liabilities - - 456 456

Net assets attributable to unitholders - - 226,145 226,145

- 25 -








interest rateFixed interest

rateNon-interest

bearing Total

$ $ $ $

Financial assets



Futures - 13,421 - 13,421

Forward foreign exchange contracts - - 44,552 44,552

Swaps - - 122,149 122,149

Units in related schemes - - 51,138,184 51,138,184

Interest bearing securities 7,217,670 26,717,416 - 33,935,086

Cash held on collateral 837,720 - - 837,720

Receivables - - 203,783 203,783

Total assets 8,085,710 26,730,837 51,508,668 86,325,215


Financial liabilities held at fair value through profit or loss

Futures - 290,878 - 290,878

Swaps - - 111,486 111,486

Distribution payable - - 235,372 235,372

Payables - - 170,227 170,227

Total liabilities (excluding net assets attributable tounitholders) - 290,878 517,085 807,963

Net assets attributable to unitholders-liability - - 85,517,252 85,517,252

- 26 -








interest rateFixed


bearing Total

$'000 $'000 $'000 $'000

Financial assets

Cash and cash equivalents 1,105,024 - - 1,105,024


Interest bearing securities - 151,209 - 151,209

Money market securities 1,836,392 - - 1,836,392


Total assets 2,941,416 151,209 367 3,092,992



Futures - - - -


Total liabilities - - 4,788 4,788

Net assets attributable to unitholders - - 3,088,204 3,088,204



interest rateFixed interest

rateNon-interest

bearing Total

$'000 $'000 $'000 $'000

Financial assets

Cash and cash equivalents 1,144,843 - - 1,144,843



Money market securities 1,547,708 - - 1,547,708


Total assets 2,692,551 130,626 356 2,823,533



Futures 29 - - 29


Total liabilities 29 - 4,827 4,856

Net assets attributable to unitholders - - 2,818,677 2,818,677

- 27 -




(b) Summarised VaR Analysis

Value at Risk (VaR) is a risk model used to estimate the potential losses that could occur on the Funds' net asset valueposition due to movements in interest rates, currency and market prices over a given period and for a specified degree ofconfidence.

The Responsible Entity uses VaR analysis and/or tracking error estimates to measure and manage risk as these are commonlyused and understood models, are easily interpreted and are consistent across different types, asset classes and types offunds. For the purpose of these accounts VaR analysis has been presented. The objective in all cases is to estimate potentiallosses and manage the downside risk.

The following tables summarise the outputs of the VaR model in relation to interest rate, currency and price risk exposures.The total VaR figures are not the sum of individual risk components as this does not include correlations between differentrisk factors.

The Responsible Entity calculates the VaR relative to the Funds' total value. The analysis implies that the Manager can be 95%confident that the value of the portfolio will not decrease by any more than the figures in the table below over the 5 dayperiod from 30 June.


2019 2018

$'000^ % $'000^ %

Total Portfolio Risk 26 0.02 23 0.01


2019 2018

$ % $ %

Total Portfolio Risk - - 453,241 0.53


2019 2018

$'000^ % $'000^ %

Total Portfolio Risk 618 0.02 282 0.01

^VaR has been calculated on Net Assets Attributable to Unitholders before rounding.

Detailed information about the models

There are a number of different VaR models used within the Funds Management industry. The Responsible Entity uses one ormore of ex-ante and ex-post estimates of portfolio risk and the Monte Carlo simulation model depending on the fund type.Models are calculated using historical data and a covariance matrix where applicable.

The models used by the Responsible Entity have the following features:

VaR is calculated to a 95 per cent confidence level. VaR at a confidence level identifies the maximum expected lossunder that confidence level;

VaR is calculated for a 5 day holding period. The time horizon of five days is selected to coincide with the period used toanalyse the portfolio positions. The risk data is examined in various daily, weekly and monthly forums; and

The portfolio VaR is not the simple sum of individual asset stand alone VaRs; the correlations among assets in theportfolio are considered.

Although VaR is a valuable risk management tool it should be interpreted, as with all predictive models, with considerationto its assumptions and limitations. The main assumptions and limitations are listed below:

Some models assumes certain financial variables are normally distributed: The normality assumption allows theResponsible Entity to scale portfolio risk estimates to the appropriate confidence levels. The normality assumption isderived from statistical analysis for examining sample populations of observations and the implications of not assumingnormality would preclude the use of most statistical tools including mainstream commercial models for risk measurement.

- 28 -




(b) Summarised VaR Analysis (continued)

Detailed information about the models (continued)

The use of historical returns and correlations between assets would not take into account future potential events: It is acommonly stated and well recognised limitation that past performance is not a reliable indicator of future performance.

Model risk, in general terms, is a known limitation that includes: the quality or accuracy of the underlying data, wheresignificant events occur within the data, the changing sensitivity of the Funds' assets to external market factors overtime, and appreciating that using only one model may be limiting in itself to obtaining the best understanding of a Funds'risk position.

The Responsible Entity acknowledges these limitations and thus compares ex-ante and ex-post risk estimates to reviewexpectations versus actual outcomes. Should ex-post values differ significantly from ex-ante returns, an assessment of thereasons for this will be made.

The Funds' risk is managed with constant review of both performance and risk numbers by the investment professionalswithin the business. These reviews consist of:

Weekly meetings between the global members of Risk & Quantitative Analysis (RQA). These meetings include RQAAustralia.

Monthly meetings between RQA and the Fund Managers.

Monthly meetings between RQA and the Chief Investment Officer.

Ad hoc presentations to the Investment Risk Management Working Group (IRMWG) to keep IRMWG abreast of RQAprocesses and latest updates.

Daily report of performance figures along with a comparison of ex-ante versus ex-post returns sent to RQA London.

RQA professionals sitting and working closely with the Fund Managers every day.

(c) Credit Risk Exposure

Credit risk is the risk that the counterparty will fail to perform contractual obligations, either in whole or in part, when theyfall due.

Credit risk primarily arises from the Funds' investment in debt instruments and from trading derivative products. Other creditrisk arises from cash and cash equivalents, deposits with banks and other financial institutions, amounts due from brokersand other receivables. None of these assets are impaired nor past due but not impaired.

Market prices generally incorporate credit risk assessments into valuations and risk of loss is implicitly provided for in thecarrying value of financial assets and liabilities as they are marked to market.

- 29 -




(c) Credit Risk Exposure (continued)

(i) Interest Bearing Securities

The Funds invest in interest bearing securities which have credit ratings as rated by well-known rating agencies. For unratedinterest bearing securities a rating is assigned by the Responsible Entity using an approach that is consistent with theapproach used by rating agencies.

The maximum exposure to credit risk at the reporting date is the carrying amount of the financial assets. None of thefinancial assets are impaired nor past due but not impaired. An analysis of the directly held interest bearing securities byrating is set out in the table below:


30 June2019

30 June2018

Rating % Portfolio % Portfolio

AAA 1.01 1.77

AA+ 3.17 0.74

AA 4.89 4.37

AA- 14.61 8.12

A+ 3.65 4.43

A-2 16.95 21.14

A 2.44 8.86

A- 9.74 5.91

A-1+ 3.63 22.05

A-1 37.47 21.87

BBB+ 2.44 0.74

Total 100.00 100.00


30 June2019

30 June2018


AA - 0.12

AA- - 1.50

A - 8.30

A- - 31.96

BBB+ - 28.39

BBB - 24.31

BBB- - 4.95

Non-rated - 0.47

Total - 100.00

- 30 -




(c) Credit Risk Exposure (continued)

(i) Interest Bearing Securities (continued)


30 June2019

30 June2018


A-1+ 64.65 69.33

A-1 35.35 30.67

Total 100.00 100.00

(ii) Derivatives

All exchange traded derivatives are executed through brokers, and cleared through a clearing broker and approved by theIRMWG. Over the counter derivative transactions are conducted only with approved counterparties, who meet the applicablespecific Funds requirements and where trading documentation is in place.

To minimise credit risk, the Funds only transact with counterparties of investment grade quality (BBB- or above as rated byStandard & Poor’s). The Responsible Entity has a process in place to assess the creditworthiness of counterparties and assessthat the risk is evenly distributed. Matters arising in relation to counterparties are reviewed regularly by the RQA.

(iii) Settlement of Securities Transactions

All transactions are settled/paid for upon delivery using approved brokers. The risk of default is considered minimal asdelivery of securities sold is only made once the broker has received payment. Payment is made on a purchase once thesecurities have been received by the broker. The trade will fail if either party fails to meet its obligation.

(iv) Other Credit Risk

The exposure to credit risk for cash and cash equivalents, deposits with banks and other financial institutions is considered tobe minimal due to the high credit rating of the relevant financial institution. VaR analysis is also used to manage andmeasure the credit risk of the Funds.

The Funds are not materially exposed to credit risk on other financial assets.

The maximum exposure to credit risk at the reporting date is the carrying amount of cash and cash equivalents and otherfinancial assets. None of these assets are impaired nor past due but not impaired.

The clearing and depository operations for the Funds' security transactions are mainly concentrated with one counterparty,namely JP Morgan Chase Bank NA (“J.P. Morgan”). J.P. Morgan is a member of a major securities exchange, and at 30 June2019 had a credit rating of A-1 (30 June 2018: A-1). At 30 June 2019, substantially all cash and cash equivalents, balancesdue from brokers and investments are held in custody by J.P. Morgan.

- 31 -




(d) Liquidity and Cash Flow Risk

Liquidity risk is the risk that the Funds may not be able to generate sufficient cash resources to settle its obligations in full asthey fall due or can only do so on terms that are materially disadvantageous. The Statements of Financial Position arepresented on a liquidity basis and discussed in Note 2(a).

The Funds are exposed to daily cash redemptions of redeemable units and daily margin calls on derivatives. The liquidityrisks associated with the need to satisfy unitholders' requests for redemptions are mitigated by maintaining adequateliquidity to satisfy usual redemption volumes and restricting the investment activities of the Funds to securities that areactively traded and highly liquid. The Funds also maintain continuous monitoring of forecast and actual cash flows andmatching the maturity profiles of financial assets and liabilities. The Responsible Entity considers and maintains the liquidityof the Funds, in the context of the investment objectives and liquidity requirements of the Funds. Operational proceduresare in place to review margin requirements on futures contracts. IRMWG reviews liquidity reports to ensure the Funds havesufficient liquidity to pay client redemptions and meet margin calls as required.

The following tables analyse the Funds' financial liabilities and derivative financial instruments (as appropriate) into relevantmaturity groupings based on the remaining period at the reporting date to the contractual maturity date. The amounts in thetables are contractual undiscounted cash flows.


At 30 June 2019Less than1 month 1-3 months 3-6 months 6-12 months 1-3 years 3+ years Total

$'000 $'000 $'000 $'000 $'000 $'000 $'000

Liabilities

Financial liabilities held at fairvalue through profit or loss

Outflows - - - - (6) - (6)

Distribution payable (264) - - - - - (264)

Payables (28) (25) - - - - (53)

Total liabilities (292) (25) - - (6) - (323)



$'000 $'000 $'000 $'000 $'000 $'000 $'000

Liabilities

Distribution payable (377) - - - - - (377)

Payables (40) (39) - - - - (79)

Total liabilities (417) (39) - - - - (456)

- 32 -




(d) Liquidity and Cash Flow Risk (continued)



$ $ $ $ $ $ $

Liabilities


Inflows - - - - - 6,428,910 6,428,910

Outflows - (290,878) - - - (6,540,396) (6,831,274)

Distribution payable (235,372) - - - - - (235,372)

Payables (129,828) (40,399) - - - - (170,227)

Net assets attributable tounitholders (85,517,252) - - - - - (85,517,252)

Total liabilities (85,882,452) (331,277) - - - (111,486) (86,325,215)

The Responsible Entity uses credit default index swaps as part of the overall investment strategy and to manage the Fundwithin its limits. The gross notional value of these swaps at 30 June 2019 was Nil (30 June 2018: $12,857,820) resulting in anasset at fair value on the Statement of Financial Position of Nil (30 June 2018: an asset of $10,663).



$'000 $'000 $'000 $'000 $'000 $'000 $'000

Liabilities


Total liabilities (4,788) - - - - - (4,788)



$'000 $'000 $'000 $'000 $'000 $'000 $'000

Liabilities


Outflows - (29) - - - - (29)


Total liabilities (4,827) (29) - - - - (4,856)

(e) Fair Values of Financial Assets and Liabilities

The carrying amounts of the Funds' assets and liabilities at the end of each reporting period approximate their fair values.

- 33 -




(e) Fair Values of Financial Assets and Liabilities (continued)

Financial assets and liabilities held at fair value through profit or loss are measured initially at fair value. Transaction costson financial assets and financial liabilities at fair value through profit or loss are expensed immediately. Subsequent to initialrecognition, all instruments held at fair value through profit or loss are measured at fair value with changes in their fairvalue recognised in the Statements of Profit or Loss and Other Comprehensive Income.

The carrying value less impairment provision of other receivables and payables are assumed to approximate their fair value.The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows atthe current market interest rate that is available to the Funds for similar financial instruments.

(i) Fair value in an active market

The fair value of financial assets and liabilities traded in active markets is based on their last traded prices at the end of thereporting period without any deduction for estimated future selling costs.

The Funds value their investments in accordance with the accounting policies set out in Note 2(b). For the majority of theirinvestments, the Funds rely on information provided by independent pricing services for the valuation of their investments.

The quoted market price used for financial assets and financial liabilities held by the Funds is the last traded market price.Where the last traded price does not fall within the bid-ask spread, an assessment is performed by the Responsible Entity todetermine the appropriate valuation price to use that is most representative of fair value.

A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from anexchange, dealer, broker, industry group, pricing service or regulatory agency and those prices represent actual regularlyoccurring market transactions on an arm's length basis.

(ii) Fair value in an inactive or unquoted market

The fair value of financial assets and liabilities that are not traded in an active market is determined using valuationtechniques. These include the use of recent arm's length market transactions, reference to the current fair value of asubstantially similar other instrument, discounted cash flow techniques, option pricing models or any other valuationtechnique that provides a reliable estimate of prices obtained in actual market transactions.

Where discounted cash flow techniques are used, estimated future cash flows are based on management's best estimates andthe discount rate used is a market rate at the end of the reporting period applicable for an instrument with similar terms andconditions.

For other pricing models, inputs are based on market data at the end of the reporting period. Fair values for unquoted equityinvestments are estimated, if possible, using applicable price/earnings ratios for similar listed companies adjusted to reflectthe specific circumstances of the issuer.

The fair value of derivatives that are not exchange traded is estimated at the amount that the Funds would receive or pay toterminate the contract at the end of the reporting period taking into account current market conditions (volatility andappropriate yield curve) and the current creditworthiness of the counterparties. The fair value of a forward foreign exchangecontract is determined as a net present value of estimated future cash flows, discounted at appropriate market rates as atthe valuation date.

Investments in other unlisted unit trusts are recorded at the net asset value per unit as reported by the Responsible Entity ofsuch funds.

(f) Fair Value Hierarchy

The Funds classify fair value measurements using a fair value hierarchy that reflects the subjectivity of the inputs used inmaking the measurements. The fair value hierarchy has the following levels:

Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1).

Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (thatis, as prices) or indirectly (that is, derived from prices) (level 2).

Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (level 3).

- 34 -




(f) Fair Value Hierarchy (continued)

The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety is determined onthe basis of the lowest level input that is significant to the fair value measurement in its entirety. For this purpose, thesignificance of an input is assessed against the fair value measurement in its entirety. If a fair value measurement usesobservable inputs that require significant adjustment based on unobservable inputs, that measurement is a level 3measurement. Assessing the significance of a particular input to the fair value measurement in its entirety requiresjudgment, considering factors specific to the asset or liability.

The determination of what constitutes 'observable' requires significant judgment by the Responsible Entity. The ResponsibleEntity considers observable data to be that market data that is readily available, regularly distributed or updated, reliableand verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market.

The following tables present the Funds' financial assets and liabilities (by class) measured at fair value according to the fairvalue hierarchy at 30 June 2019 and 30 June 2018.


Level 1 Level 2 Level 3 Total

As at 30 June 2019 $'000 $'000 $'000 $'000

Financial assets

Financial assets held at fair value through profit or loss:

Futures 4 - - 4


Money market securities 30,934 16,919 - 47,853

Total 30,938 51,493 - 82,431



Futures 6 - - 6

Total 6 - - 6



As at 30 June 2018 $'000 $'000 $'000 $'000

Financial assets


Futures 17 - - 17


Money market securities 37,846 41,593 - 79,439

Total 46,949 89,123 - 136,072

- 35 -







As at 30 June 2018 $ $ $ $

Financial assets


Futures 13,421 - - 13,421

Forward foreign exchange contracts - 44,552 - 44,552

Swaps - 122,149 - 122,149

Units in related schemes - 51,138,184 - 51,138,184

Interest bearing securities - 33,774,265 160,821 33,935,086

Total 13,421 85,079,150 160,821 85,253,392



Futures 290,878 - - 290,878

Swaps - 111,486 - 111,486

Total 290,878 111,486 - 402,364



As at 30 June 2019 $'000 $'000 $'000 $'000

Financial assets


Interest bearing securities 151,209 - - 151,209

Money market securities 1,346,992 489,400 - 1,836,392

Total 1,498,201 489,400 - 1,987,601



As at 30 June 2018 $'000 $'000 $'000 $'000

Financial assets



Money market securities 1,102,687 445,021 - 1,547,708

Total 1,153,149 525,185 - 1,678,334



Futures (29) - - (29)

Total (29) - - (29)

Investments whose values are based on quoted market prices in active markets, and therefore classified within level 1,include active listed equities, trusts, exchange traded derivatives and money market securities.

- 36 -





Financial instruments that trade in markets that are not considered to be active but are valued based on quoted marketprices, dealer quotations or alternative pricing sources supported by observable inputs are classified within level 2. Theseinclude investment grade corporate bonds, certain listed equities, certain unlisted unit trusts, and over-the-counterderivatives. As level 2 investments include positions that are not traded in active markets and/or are subject to transferrestrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based onavailable market information.

Investments classified as level 2 are money market securities, debt and derivative instruments and units in related schemes.The fair value of money market securities and debt and derivative instruments is derived from industry standard valuationmodels with published or observable market data. The fair value of the units held in related schemes and international trustsis determined by the unit price released as at the reporting date by the Responsible Entity for the related schemes.

Investments classified within level 3 have significant unobservable inputs, as they are infrequently traded. As observableprices are not available for these securities, the Responsible Entity has used valuation techniques to derive fair value.

The Funds' assets and liabilities not measured at fair value on a recurring basis (but fair value disclosures are required) at 30June 2019 and 30 June 2018 have been classified as level 2. The carrying amounts of these assets and liabilities approximatetheir fair values as at the end of the reporting date.

Investments classified as level 3 include debt instruments priced using an external pricing source that are infrequently tradedand hence there is a degree of subjectivity associated with the accuracy of the price.

BlackRock Enhanced Cash Fund and BlackRock Money Market Fund did not hold any level 3 instruments during the year ended30 June 2019 (30 June 2018: Nil).

There were no transfers between levels for recurring fair value measurements during the year ended 30 June 2019 (30 June2018: Nil).

For BlackRock Monthly Income Fund, the following tables present the movement in level 3 instruments for the year ended 30June 2019 and 30 June 2018 by class of financial instrument.


30 June 2019Equity

securities

$

Opening balance 160,821

Sales (32,441)

Gains/(losses) recognised in the Statement of Profit or Loss and Other Comprehensive Income (128,380)

Closing balance -

Total unrealised gains/(losses) for the year included in the Statement of Profit or Loss and OtherComprehensive Income for financial assets and liabilities held at the end of the year (31,257)

30 June 2018Equity

securities

$

Opening balance 176,201

Sales (153,563)

Gains/(losses) recognised in the Statement of Profit or Loss and Other Comprehensive Income 138,183

Closing balance 160,821

Total unrealised gains/(losses) for the year included in the Statement of Profit or Loss and OtherComprehensive Income for financial assets and liabilities held at the end of the year 138,183

- 37 -




(g) Offsetting Financial Assets and Financial Liabilities

Financial assets and liabilities are reported on a gross basis in the Statement of Financial Position. BlackRock Enhanced CashFund and BlackRock Money Market Fund did not hold any derivatives subject to master netting arrangement. The gross and netpositions of financial assets and liabilities are disclosed in the following tables.


Gross amounts not offset on the Statement of Financial Position

30 June 2018

Gross amount offinancial

instrumentspresented in the

Statement ofFinancial Position

Amounts subject tomaster nettingarrangements

Net amountexcluding collateral

Cash collateralreceived/posted Net amount

$ $ $ $ $

Financial assets

Derivatives 180,122 24,681 155,441 8,291 147,150

Total 180,122 24,681 155,441 8,291 147,150


Derivatives 402,364 24,681 377,683 377,683 -

Total 402,364 24,681 377,683 377,683 -

Agreements with the derivative counterparties are based on the ISDA Master Agreement. Under the terms of thesearrangements, if on any date amounts would otherwise be payable in the same currency and in respect to the same transactionwith the counterparty, the obligation may be automatically satisfied and discharged if the party with the larger aggregateamount pays to the other party the excess of the larger aggregate amount over the smaller aggregate amount. In the event ofdefault, the aggregation into a net position owing/receivable to a single counterparty is subject to the terms of thearrangements and the insolvency laws of the relevant jurisdiction of the party in default.

4 Net Gains/(Losses) on Financial Instruments Held at Fair Value Through Profit or Loss

The net gains/(losses) recognised in relation to financial assets and financial liabilities held at fair value through profit or loss:




30 June2019

30 June2018

30 June2019

30 June2018

$'000 $'000 $ $

Net gain/(loss) on financial assets and liabilities held atfair value through profit or loss (including FXgains/(losses)) 3,832 4,638 1,069,376 638,192

3,832 4,638 1,069,376 638,192

- 38 -



4 Net Gains/(Losses) on Financial Instruments Held at Fair Value Through Profit or Loss(continued)


Year ended

30 June2019

30 June2018

$'000 $'000

Net gain/(loss) on financial assets and liabilities held atfair value through profit or loss (including FXgains/(losses)) 56,344 46,706

56,344 46,706

5 Distributions to Unitholders

The distributions during the year were as follows:


Year ended

30 June2019

30 June2018

$'000 CPU* $'000 CPU*

Distributions paid - 31 July 389 - 329 -

Distributions paid - 31 August 387 - 409 -

Distributions paid - 30 September 389 - 389 -

Distributions paid - 31 October 370 - 391 -

Distributions paid - 30 November 308 - 382 -

Distributions paid - 31 December 298 - 392 -

Distributions paid - 31 January 291 - 319 -

Distributions paid - 28 February 262 - 335 -

Distributions paid - 31 March 295 - 402 -

Distributions paid - 30 April 304 - 388 -

Distributions paid - 31 May 349 - 397 -

Distributions payable - 30 June 264 - 377 -

3,906 4,510

* BlackRock Enhanced Cash Fund and BlackRock Money Market Fund are daily distributing funds paid on a daily entitlementbasis with a fixed unit price. As such the Funds have no cents per unit.

- 39 -



5 Distributions to Unitholders (continued)

BlackRock Monthly Income Fund - Class C

Year ended

30 June2019

30 June2018

$ CPU $ CPU

Distributions paid - 31 July 16,320 0.21 17,592 0.20

Distributions paid - 31 August 15,978 0.20 17,387 0.20

Distributions paid - 30 September 15,060 0.21 16,980 0.19

Distributions paid - 31 October - - 16,925 0.19

Distributions paid - 30 November - - 16,916 0.19

Distributions paid - 31 December - - 17,054 0.20

Distributions paid - 31 January - - 16,780 0.19

Distributions paid - 28 February - - 16,458 0.19

Distributions paid - 31 March - - 16,397 0.19

Distributions paid - 30 April - - 17,746 0.21

Distributions paid - 31 May - - 15,967 0.20

Distributions payable - 30 June - - 16,408 0.21

47,358 202,610

BlackRock Monthly Income Fund - Class D

Year ended

30 June 2019 30 June 2018

$ CPU $ CPU

Distributions paid - 31 July 217,881 0.22 219,693 0.21

Distributions paid - 31 August 211,079 0.22 218,368 0.21

Distributions paid - 30 September 189,504 0.22 218,872 0.21

Distributions paid - 31 October - - 214,765 0.21

Distributions paid - 30 November - - 222,755 0.21

Distributions paid - 31 December - - 223,111 0.21

Distributions paid - 31 January - - 216,955 0.21

Distributions paid - 28 February - - 214,691 0.21

Distributions paid - 31 March - - 218,980 0.21

Distributions paid - 30 April - - 227,759 0.22

Distributions paid - 31 May - - 223,388 0.22

Distributions payable - 30 June - - 218,846 0.22

618,464 2,638,183

- 40 -



5 Distributions to Unitholders (continued)

BlackRock Monthly Income Fund - Class R

Year ended

30 June 2019 30 June 2018

$ CPU $ CPU

Distributions paid - 31 July 118 0.21 1,817 0.20

Distributions paid - 31 August 119 0.22 112 0.20

Distributions paid - 30 September 120 0.22 113 0.20

Distributions paid - 31 October - - 110 0.20

Distributions paid - 30 November - - 111 0.20

Distributions paid - 31 December - - 114 0.21

Distributions paid - 31 January - - 110 0.20

Distributions paid - 28 February - - 110 0.20

Distributions paid - 31 March - - 113 0.20

Distributions paid - 30 April - - 118 0.21

Distributions paid - 31 May - - 118 0.22

Distributions payable - 30 June - - 118 0.21

357 3,064


Year ended

30 June2019

30 June2018

$'000 CPU* $'000 CPU*

Distributions paid - 31 July 4,853 - 4,689 -

Distributions paid - 31 August 5,101 - 4,639 -

Distributions paid - 30 September 5,089 - 4,363 -

Distributions paid - 31 October 5,024 - 4,285 -

Distributions paid - 30 November 4,665 - 4,171 -

Distributions paid - 31 December 4,851 - 4,408 -

Distributions paid - 31 January 5,168 - 4,399 -

Distributions paid - 28 February 5,198 - 3,843 -

Distributions paid - 31 March 5,840 - 4,437 -

Distributions paid - 30 April 5,418 - 4,473 -

Distributions paid - 31 May 5,359 - 4,787 -

Distributions payable - 30 June 4,788 - 4,827 -

61,354 53,321

* BlackRock Enhanced Cash Fund and BlackRock Money Market Fund are daily distributing funds paid on a daily entitlementbasis with a fixed unit price. As such the Funds have no cents per unit.

- 41 -



6 Net Assets Attributable to Unitholders


Under AASB 132 Financial instruments: Presentation, puttable financial instruments meet the definition of a financialliability to be classified as equity where certain strict criteria are met. The Funds shall classify a financial instrument as anequity instrument from the date when the instrument has all the features and meets the conditions.

The Funds meet the criteria set out under AASB 132 and net assets attributable to unitholders is classified as equity.

As stipulated within the Funds' Constitutions, each unit represents a right to an individual share in the Funds and does notextend to a right to the underlying assets of the Funds. There are no separate classes of units and each unit has the samerights attaching to it as all other units of the Funds.


As stipulated within the Fund's Constitution, each unit represents a right to an individual share in the Fund and does notextend to a right to the underlying assets of the Fund. All units and unit classes have the same rights and restrictions asprovided in the Fund's Constitution. The difference between units classes relates to the obligation to pay fees to theManager. The fee rate varies from unit class to unit class with the exception of class X for which no management fees arecharged.

Movement in number of units and net assets attributable to unitholders during the year were as follows:


30 June2019

30 June2018

30 June2019

30 June2018

No.'000 No.'000 $'000 $'000

Opening balance 227,189 220,076 226,145 219,014

Profit/(loss) for the year - - 3,829 4,567

Applications 7,218 56,441 7,184 56,182

Redemptions (108,081) (53,886) (107,580) (53,646)

Units issued upon reinvestment of distributions 4,038 4,558 4,019 4,538

Distributions paid and payable - - (3,906) (4,510)

Closing balance 130,364 227,189 129,691 226,145

BlackRock Monthly Income Fund - Class C

30 June2019

30 June2018

30 June2019

30 June2018

No. No. $ $

Opening balance 7,934,654 9,005,541 6,304,351 7,221,117

Applications 1,378 4,032 1,102 3,264

Redemptions (7,955,241) (1,238,285) (6,379,363) (998,497)


Increase/(decrease) in net assets attributable tounitholders - - 58,562 (53,014)

Closing balance - 7,934,654 - 6,304,351

- 42 -



6 Net Assets Attributable to Unitholders (continued)

BlackRock Monthly Income Fund - Class D

30 June2019

30 June2018

30 June2019

30 June2018

No. No. $ $

Opening balance 99,475,437 103,543,191 79,170,199 83,170,946

Applications 2,403,882 17,033,031 1,927,018 13,819,106

Redemptions (102,016,304) (22,154,782) (81,926,765) (17,915,376)

Units issued upon reinvestment of distributions 136,985 1,053,997 109,640 849,677

Increase/(decrease) in net assets attributable tounitholders - - 719,908 (754,154)

Closing balance - 99,475,437 - 79,170,199

BlackRock Monthly Income Fund - Class R

30 June2019

30 June2018

30 June2019

30 June2018

No. No. $ $

Opening balance 55,059 853,822 42,702 668,582

Redemptions (55,059) (834,644) (43,106) (654,404)

Units issued upon reinvestment of distributions - 35,881 - 28,104

Increase/(decrease) in net assets attributable tounitholders - - 404 420

Closing balance - 55,059 - 42,702


30 June2019

30 June2018

30 June2019

30 June2018

No.'000 No.'000 $'000 $'000

Opening balance 2,819,170 2,791,297 2,818,677 2,791,895

Profit/(loss) for the year - - 62,835 52,230

Applications 2,510,581 1,698,428 2,510,581 1,698,428

Redemptions (2,299,045) (1,719,196) (2,299,054) (1,719,196)


Distributions paid and payable - - (61,354) (53,321)

Closing balance 3,087,225 2,819,170 3,088,204 2,818,677

Capital Risk Management


The Funds manage their net assets attributable to unitholders as capital. The amount of net assets attributable tounitholders can change significantly on a daily basis as the Funds are subject to daily applications and redemptions at thediscretion of unitholders.


The Fund manages its net assets attributable to unitholders as capital, notwithstanding net assets attributable to unitholdersare classified as a liability. The amount of net assets attributable to unitholders can change significantly on a daily basis asthe Fund is subject to daily applications and redemptions at the discretion of unitholders.

BlackRock Enhanced Cash Fund, BlackRock Money Market Fund and BlackRock Monthly Income Fund monitor the level of dailyapplications and redemptions relative to the liquid assets in the Funds. As of 30 June 2019 the capital of the Funds arerepresented in the net assets attributable to unitholders table.

- 43 -



6 Net Assets Attributable to Unitholders (continued)

Capital Risk Management (continued)

BlackRock Money Market Fund (continued)

In the event of a significant redemption, the Funds' Constitutions allow the delay of payment beyond the usual redemptiontimeframe but no later than the maximum number of days specified in the Constitution for satisfying redemption requests.Further, in certain circumstances such as disrupted markets, the Constitution allows payment to be delayed beyond themaximum number of days.

7 Financial Assets Held at Fair Value Through Profit or Loss



As at As at

30 June2019

30 June2018

30 June2019

30 June2018

$'000 $'000 $ $

Futures 4 17 - 13,421

Forward foreign exchange contracts - - - 44,552

Swaps - - - 122,149

Units in related schemes - - - 51,138,184

Interest bearing securities 34,574 56,616 - 33,935,086

Money market securities 47,853 79,439 - -

Total financial assets held at fair value through profit orloss 82,431 136,072 - 85,253,392


As at

30 June2019

30 June2018

$'000 $'000

Futures - -

Forward foreign exchange contracts - -

Swaps - -

Units in related schemes - -

Interest bearing securities 151,209 130,626

Money market securities 1,836,392 1,547,708

Total financial assets held at fair value through profit orloss 1,987,601 1,678,334

An overview of the risk exposures relating to financial assets held at fair value through profit or loss is included in Note 3.

- 44 -



8 Receivables



As at As at

30 June2019

30 June2018

30 June2019

30 June2018

$'000 $'000 $ $

Applications receivable - - - 30,742

Interest receivable 13 19 - 59

Distributions from related schemes receivable - - - 163,388

Fee rebates from related schemes receivable - - - 165

Tax reclaim receivable 12 12 - -

Other receivables 6 8 - 9,429

Total 31 39 - 203,783


As at

30 June2019

30 June2018

$'000 $'000

Applications receivable - -

Interest receivable 367 355

Distributions from related schemes receivable - -

Fee rebates from related schemes receivable - -

Tax reclaim receivable - -

Other receivables - 1

Total 367 356

There are no past due (not impaired) or allowance for doubtful debts included in the above receivables as at 30 June 2019(30 June 2018: Nil).

9 Financial Liabilities Held at Fair Value Through Profit or Loss



As at As at

30 June2019

30 June2018

30 June2019

30 June2018

$'000 $'000 $ $

Futures 6 - - 290,878

Swaps - - - 111,486

Total financial liabilities held at fair value throughprofit or loss 6 - - 402,364

- 45 -



9 Financial Liabilities Held at Fair Value Through Profit or Loss (continued)


As at

30 June2019

30 June2018

$'000 $'000

Futures - 29

Swaps - -

Total financial liabilities held at fair value throughprofit or loss - 29

An overview of the risk exposures relating to financial liabilities held at fair value through profit or loss is included in Note 3.

10 Payables



As at As at

30 June2019

30 June2018

30 June2019

30 June2018

$'000 $'000 $ $

Redemptions payable - - - 86,772

Management fees payable 53 79 - 83,455

Total 53 79 - 170,227

11 Related Party Transactions

Responsible Entity

The Responsible Entity of the BlackRock Cash and Fixed Interest Funds is BlackRock Investment Management (Australia)Limited (ABN 13 006 165 975, AFSL 230523) whose ultimate holding company is BlackRock, Inc.

BlackRock Investment Management (Australia) Limited is incorporated in Australia and BlackRock, Inc. is incorporated in theUnited States of America.

Key management personnel

Directors

Key management personnel include persons who were directors of the Responsible Entity at any time during the financialyear as follows:

Director Date appointed Date resigned

M S McCorry Appointed 2 December 2009

A Telfer Appointed 12 December 2013

S Flatman Appointed 28 January 2015

J Collins Appointed 29 July 2015

D Rohe Appointed 27 July 2016 Resigned 6 May 2019

- 46 -



11 Related Party Transactions (continued)

Other key management personnel

No other person had authority and responsibility for planning, directing and controlling the activities of the Funds, directly orindirectly during the financial year (30 June 2018: Nil).

Key management personnel unitholdings

At 30 June 2019 no key management personnel held units in the Funds (30 June 2018: Nil).

Key management personnel compensation

Key management personnel are paid by the Responsible Entity. Payments made from the Funds to the Responsible Entity donot include any amounts attributable to the compensation of key management personnel.

Key management personnel loan disclosures

The Funds have not made, guaranteed or secured, directly or indirectly, any loans to the key management personnel or theirpersonally related entities at any time during the reporting period.

Responsible Entity's fees and other transactions

In accordance with the Funds' Constitutions, the Responsible Entity was entitled to receive fees for the provision of servicesto the Funds.

Managementfees

Fee rebatesfrom related

schemes

At 30 June 2019 $ $

BlackRock Enhanced Cash Fund 365,948 -

BlackRock Monthly Income Fund 181

Class C 11,766

Class D 107,047

Class R 60

Managementfees

Fee rebatesfrom related

schemes

At 30 June 2018 $ $

BlackRock Enhanced Cash Fund 491,286 -

BlackRock Monthly Income Fund 4,194

Class C 52,423

Class D 465,209

Class R 762

- 47 -




Investments

BlackRock Enhanced Cash Fund and BlackRock Money Market Fund did not hold any investments in schemes also managed bythe Responsible Entity or its related parties during the reporting year (30 June 2018: Nil).

The BlackRock Monthly Income Fund held investments in the following schemes which were also managed by the ResponsibleEntity or its related parties:


30 June 2019

Number ofunits held atyear end

Fair value ofunits held atyear end

Value of unitspurchased

during the year

Value of unitssold during

the year

Interestheld at

year end

Distributionsreceived/receivableduring the

year

Units $ $ $ % $

BlackRock EnhancedCash Fund - - 2,527 472,008 - 1,741

BGF Global Corp X8 - - - 38,525,705 - 319,434

BGF Global High YieldBond Hedged X8 - - - 9,670,987 - 145,065

BlackRock Money MarketFund - - 68,044,457 70,451,485 - 42,298


30 June 2018

Number ofunits held atyear end

Fair value ofunits held atyear end

Value of unitspurchased

during the year

Value of unitssold duringthe year

Interestheld at

year end

Distributionsreceived/receivableduring the

year

Units $ $ $ % $

BlackRock EnhancedCash Fund 471,432 469,317 26,137,974 29,941,879 0.21 39,087

BGF Global Corp X8 3,871,930 38,680,582 - - 1.33 1,378,406

BGF Global High YieldBond Hedged X8 997,009 9,581,256 10,000,000 - 0.00* 474,576

BlackRock Money MarketFund 2,407,029 2,407,029 17,752,454 15,345,425 0.09 36,817

* The interest held at year end is 0.0047 when it is rounded to 4 decimal places.

Related party schemes' unit holdings


The Responsible Entity and its related parties did not hold any units in the Funds as at 30 June 2019 (30 June 2018: Nil).


Parties related to the Funds including the Responsible Entity, its related parties or other schemes managed by theResponsible Entity held units in the Funds as follows:

- 48 -




Related party schemes' unit holdings (continued)


30 June 2019

Number ofunits heldopening

Number ofunits heldclosing

Interestheld at

year end

Numberof unitsacquired

Numberof unitsdisposed

Distributionspaid/payableby the fund

Unitholder Units Units % Units Units $

BlackRock AustralianBond Fund 1,669,630 1,707,316 1.31 37,686 - 38,026

BlackRock MonthlyIncome Fund 471,432 - - 2,619 474,050 1,741

BlackRock TacticalGrowth Fund 8,305,395 54,337 0.04 89,321 8,340,379 75,609

BlackRock AustralianEquity Market NeutralFund 102,332,062 11,377,906 8.73 1,317,146 92,271,302 1,187,493


30 June 2018



Interestheld at

year end





BlackRock AustralianBond Fund 2,697,433 1,669,630 0.73 6,710,311 7,738,114 84,367

BlackRock MonthlyIncome Fund 4,292,988 471,432 0.21 26,257,671 30,079,227 39,087

BlackRock TacticalGrowth Fund 12,096,822 8,305,395 3.66 225,974 4,017,401 212,948

BlackRock AustralianEquity Market NeutralFund 80,364,070 102,332,062 45.04 21,967,992 - 1,925,203


30 June 2019



Interestheld at

year end





BlackRock AustraliaBond Fund 5,777,527 4,306,541 0.14 6,328,872 7,800,645 101,527

BlackRock ConcentratedIndustrial Long ShortFund 2,406,594 1,998,591 0.06 12,558,545 12,962,346 60,760

BlackRock MonthlyIncome Fund 2,407,029 - - 68,044,457 70,451,485 36,964

BlackRock AustralianEquity Market NeutralFund 9,813,134 19,688,481 0.64 104,455,569 94,149,345 417,765

BlackRock ConcentratedIndustrial Share Fund 64,475,069 71,195,950 2.32 348,726,148 341,688,310 907,644

BlackRock TacticalGrowth Fund 5,509,742 26,185,550 0.70 169,475,738 153,504,684 303,110

BlackRock ConcentratedTotal Return Share Fund 3,900,521 7,760,425 0.25 43,442,743 39,582,837 152,257

- 49 -




Related party schemes' unit holdings (continued)


30 June 2018



Interestheld at

year end





BlackRock Australia BondFund - 5,777,527 0.20 11,902,785 6,125,259 34,910

BlackRock ConcentratedIndustrial Long ShortFund - 2,406,594 0.09 12,648,368 10,241,774 26,011

BlackRock MonthlyIncome Fund - 2,407,029 0.09 17,752,454 15,345,425 36,817

BlackRock AustralianEquity Market NeutralFund 164,879,111 9,813,134 0.35 29,931,756 184,997,733 1,208,389

BlackRock ConcentratedIndustrial Share Fund 7,252,457 64,475,069 2.29 414,211,699 356,989,087 587,951

BlackRock TacticalGrowth Fund 8,529,445 5,509,742 0.20 208,704,370 211,724,073 207,237

BlackRock ConcentratedTotal Return Share Fund 1,766,049 3,900,521 0.14 18,144,459 16,009,987 57,905

Other transactions with the Funds

Apart from those details disclosed in this note, no key management personnel have entered into a material contract with theFunds since the end of the previous financial year and there were no material contracts involving key managementpersonnel's interests subsisting at year end.

12 Remuneration of Auditor

During the year the following fees were paid or payable for services provided by the auditor of the Funds:



30 June2019

30 June2018

30 June2019

30 June2018

$ $ $ $


Audit and review of the financial statements 7,866 7,866 9,116 13,116

Other services 1,264 1,264 1,264 1,264

Total 9,130 9,130 10,380 14,380

- 50 -



12 Remuneration of Auditor (continued)


30 June2019

30 June2018

$ $


Audit and review of the financial statements 7,866 7,866

Other services 1,264 1,264

Total 9,130 9,130

Other services relate to the audit of the Funds' compliance plans. The audit fees paid or payable are discharged by theResponsible Entity from the fees earned from the Funds.

- 51 -



13 Reconciliation of Profit/(Loss) to Net Cash Inflow/(Outflow) from Operating Activities


Year ended

30 June2019

30 June2018

$'000 $'000

(a) Reconciliation of operating profit/(loss) to netcash inflow/(outflow) from operating activities

Operating profit/(loss) for the year 3,829 4,567

Net (gains)/losses on financial assets and liabilitiesheld at fair value through profit or loss (including FX(gains)/losses) (3,832) (4,638)

Proceeds from sale of financial instruments held at fairvalue through profit or loss 362,552 433,330

Purchases of financial instruments held at fair valuethrough profit or loss (307,454) (398,973)

Dividends/distributions reinvested - -

Net change in receivables and other assets 8 (20)

Net change in accounts payables and accrued liabilities (26) 21

Interest received from debt securities 2,397 2,053

Net cash inflow/(outflow) from operating activities 57,474 36,340

(b) Components of cash and cash equivalents

Cash as at the end of the financial year as shown inthe Statement of Cash Flows is reconciled to theStatement of Financial Position as follows:

Cash 47,546 90,468

Margin accounts - -

Total cash and cash equivalents 47,546 90,468

Margin accounts comprise of restricted cash held forderivative transactions

(c) Non cash financing activities

During the year, the following distribution paymentswere satisfied by the issue of units under thedistribution reinvestment plan 4,019 4,538

Class C

Class D

Class R

The changes in this amount each year (as reported in (c) above) represents a non cash financing cost as it is not settled in cashuntil such time as it becomes attributable (i.e. taxable).

- 52 -



13 Reconciliation of Profit/(Loss) to Net Cash Inflow/(Outflow) from Operating Activities(continued)


Year ended

30 June2019

30 June2018

$ $


Operating profit/(loss) for the year 1,445,052 2,037,107

Net (gains)/losses on financial assets and liabilitiesheld at fair value through profit or loss (including FX(gains)/losses) (1,069,376) (638,192)


Purchases of financial instruments held at fair valuethrough profit or loss (786) (52,722,680)

Dividends/distributions reinvested (1,741) (77,681)

Net change in receivables and other assets 172,581 (28,552)

Net change in accounts payables and accrued liabilities (83,455) (7,633)

Interest received from debt securities 1,040,410 1,686,196

Net cash inflow/(outflow) from operating activities 87,223,122 11,082,539



Cash - 30,320

Margin accounts - -

Total cash and cash equivalents - 30,320



During the year, the following distribution paymentswere satisfied by the issue of units under thedistribution reinvestment plan

Class C 15,348 131,481

Class D 109,640 849,677

Class R - 28,104


- 53 -



13 Reconciliation of Profit/(Loss) to Net Cash Inflow/(Outflow) from Operating Activities(continued)


Year ended

30 June2019

30 June2018

$'000 $'000


Operating profit/(loss) for the year 62,835 52,230

Net (gains)/losses on financial assets and liabilitiesheld at fair value through profit or loss (including FX(gains)/losses) (56,344) (46,706)


Purchases of financial instruments held at fair valuethrough profit or loss (7,925,677) (7,587,699)

Dividends/distributions reinvested - -

Net change in receivables and other assets (11) (342)

Net change in accounts payables and accrued liabilities - -

Interest received from debt securities - -

Net cash inflow/(outflow) from operating activities (246,472) 281,212



Cash 1,105,024 1,144,571

Margin accounts - 272

Total cash and cash equivalents 1,105,024 1,144,843



During the year, the following distribution paymentswere satisfied by the issue of units under thedistribution reinvestment plan 56,519 48,641

Class C

Class D

Class R


- 54 -



14 Events Occurring After the Reporting Period

Prior to the date of signing the annual financial report, BlackRock Monthly Income Fund settled all receivables and liabilitiesoutstanding as at balance sheet date resulting in a nil cash and cash equivalents balance.

No other significant events have occurred since the end of the reporting period up to the date of signing the Annual FinancialReport which would impact on the financial position of the Funds disclosed in the Statements of Financial Position as at 30June 2019 or on the results and cash flows of the Funds for the year ended on that date.

15 Contingent Assets, Contingent Liabilities and Commitments

There are no outstanding contingent assets, contingent liabilities or commitments as at 30 June 2019 (30 June 2018: Nil).

16 Termination of the Fund

Wind up procedures have been commenced for the BlackRock Monthly Income Fund in accordance with the Fund'sConstitution and approval received from the directors of the Responsible Entity on 29 August 2018. The final redemption outof the Fund was made on 8 October 2018. Prior to the date of signing the annual financial report, the Fund settled allreceivables and liabilities outstanding as at balance sheet date resulting in a nil cash and cash equivalents balance.

- 55 -

BlackRock Cash and Fixed Interest FundsDirectors' Declaration


Directors' Declaration

In the opinion of the directors of the Responsible Entity:

(a) the financial statements and notes set out on pages 7 to 55 are in accordance with the Corporations Act 2001,including:

(i) complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professionalreporting requirements; and

(ii) giving a true and fair view of the Funds' financial position as at 30 June 2019 and of their performance, asrepresented by the results of their operations; changes in equity and its cash flows, for the financial year endedon that date;

(b) the financial statements also comply with International Financial Reporting Standards as disclosed in Note 2(a); and

(c) there are reasonable grounds to believe that the Funds will be able to pay their debts as and when they become dueand payable.

Signed in accordance with a resolution of the Responsible Entity made pursuant to s.295(5) of the Corporations Act 2001.

Director

S Flatman

Sydney

18 September 2019

- 56 -

ykaskhed

Stamp

Liability limited by a scheme approved under Professional Standards Legislation.

Member of Deloitte Asia Pacific Limited and the Deloitte Network.


ABN 74 490 121 060

550 Bourke Street

Melbourne VIC 3000

GPO Box 78

Melbourne VIC 3001 Australia

Tel: +61 3 9671 7000

Fax: +61 3 9671 7001

www.deloitte.com.au

Independent Auditor’s Report to the Unitholders of

BlackRock Cash and Fixed Interest Funds

Opinion

We have audited the financial reports of BlackRock Enhanced Cash Fund, BlackRock Monthly Income

Fund, and BlackRock Money Market Fund (collectively “BlackRock Cash and Fixed Interest Funds” or

the “Funds”), which comprises the statements of financial position as at 30 June 2019, the statements

of profit or loss and other comprehensive income, the statements of changes in equity and the

statements of cash flows for the year then ended, and notes to the financial statements, including a

summary of significant accounting policies and other explanatory information, and the directors’

declaration.

In our opinion, the accompanying financial reports of the Funds is in accordance with the Corporations

Act 2001, including:

(i) giving a true and fair view of the Funds’ financial position as at 30 June 2019 and of its

performance for the year then ended; and

(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.

Basis for Opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under

those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial

Report section of our report. We are independent of the Funds in accordance with the auditor

independence requirements of the Corporations Act 2001 and the ethical requirements of the

Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional

Accountants (the “Code”) that are relevant to our audit of the financial report in Australia. We have

also fulfilled our other ethical responsibilities in accordance with the Code.

We confirm that the independence declaration required by the Corporations Act 2001, which has

been given to the directors of Blackrock Investment Management (Australia) Limited (the

“Responsible Entity”), would be in the same terms if given to the directors as at the time of this

auditor’s report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis

for our opinion.

Other Information

The directors of the Responsible Entity (the “Directors”) are responsible for the other information.

The other information comprises the Directors’ Report included in the financial reports for the year

ended 30 June 2019, but does not include the annual financial reports and our auditor’s report

thereon.

Our opinion on the financial reports does not cover the other information and we do not express any

form of assurance conclusion thereon.

In connection with our audit of the financial reports, our responsibility is to read the other information

and, in doing so, consider whether the other information is materially inconsistent with the financial

reports or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If,

18 September 2019

based on the work we have performed, we conclude that there is a material misstatement of this

other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Directors for the Financial Reports

The directors are responsible for the preparation of the financial reports that give a true and fair view

in accordance with Australian Accounting Standards (as they apply on a non-going concern basis in

relation to BlackRock Monthly Income Fund) and the Corporations Act 2001 and for such internal

control as the directors determine is necessary to enable the preparation of the financial reports that

give a true and fair view and is free from material misstatement, whether due to fraud or error.

In preparing the financial reports, the directors are responsible for assessing the ability of the Funds

to continue as going concerns, disclosing, as applicable, matters related to going concern and using

the going concern basis of accounting unless the directors either intend to liquidate the Fund or to

cease operations, or has no realistic alternative but to do so. As the directors have resolved to wind

up the BlackRock Monthly Income Fund, the financial report of this Fund has been prepared on a

non-going concern basis.

Auditor’s Responsibilities for the Audit of the Financial Report

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is

free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that

includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that

an audit conducted in accordance with the Australian Auditing Standards will always detect a material

misstatement when it exists. Misstatements can arise from fraud or error and are considered material

if, individually or in the aggregate, they could reasonably be expected to influence the economic

decisions of users taken on the basis of this financial report.

As part of an audit in accordance with the Australian Auditing Standards, we exercise professional

judgement and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial report, whether due

to fraud or error, design and perform audit procedures responsive to those risks, and obtain

audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk

of not detecting a material misstatement resulting from fraud is higher than for one resulting

from error, as fraud may involve collusion, forgery, intentional omissions,

misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit

procedures that are appropriate in the circumstances, but not for the purpose of expressing

an opinion on the effectiveness of the Funds’ internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of

accounting estimates and related disclosures made by the directors.

Conclude on the appropriateness of the directors’ use of the going concern basis of

accounting for the BlackRock Enhanced Cash Fund and BlackRock Money Market Fund (and

non-going concern basis as it applies in relation to the BlackRock Monthly Income Fund), and

based on the audit evidence obtained, whether a material uncertainty exists related to events

or conditions that may cast significant doubt on the BlackRock Enhanced Cash Fund and

BlackRock Money Market Funds’ ability to continue as a going concern. If we conclude that a

material uncertainty exists, we are required to draw attention in our auditor’s report to the

related disclosures in the financial reports or, if such disclosures are inadequate, to modify

our opinion. Our conclusions are based on the audit evidence obtained up to the date of our

auditor’s report. However, future events or conditions may cause the BlackRock Enhanced

Cash Fund and BlackRock Money Market Fund to cease to continue as going concern.

18 September 2019

Evaluate the overall presentation, structure and content of the financial reports, including

the disclosures, and whether the financial reports represents the underlying transactions and

events in a manner that achieves fair presentation.

We communicate with the directors regarding, among other matters, the planned scope and timing

of the audit and significant audit findings, including any significant deficiencies in internal control

that we identify during our audit.

DELOITTE TOUCHE TOHMATSU

Neil Brown

Partner

Chartered Accountants

BLACKROCK CASH AND FIXED INTEREST FUNDS...BlackRock Cash and Fixed Interest Funds Directors' Report...

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