The Fund seeks to achieve its objective by tracking the performance of the MSCI Australia IMI Custom ESG Leaders Index. BlackRock will generally implement a full replication investment strategy to track the performance of the Index as risk relative to the Index is minimised. Our full-replication approach normally aims to purchase every security in the Index, while considering transaction costs. However, where full replication is not possible, due to liquidity and transaction cost considerations, an optimisation investment strategy may be used. Optimisation is an indexing strategy that involves investing in a representative sample of securities that collectively has an investment profile similar to the Index. The securities selected are expected to have, in the aggregate, investment characteristics (based on factors such as market capitalisation and industry weightings), fundamental characteristics (such as return variability and yield) and liquidity measures, similar to those of the Index. Therefore, the Fund may or may not hold all of the securities in the Index and the weighting of the securities held by the Fund may differ to the weighting of securities in the Index.

The MSCI Australia IMI Custom ESG Leaders Index (the Index) is a free float-adjusted market capitalisation weighted index that aims to reflect the performance characteristics of a subset of equity securities within the MSCI Australia IMI Index (Parent Index) withthe exception of securitiesclassified under select Global Industry Classification (GICS®) sub-industries)  that have high Environmental, Social and Governance (“ESG”) ratings relative to their sector peers. The Parent Index is designed measure the performance of the large,mid and small cap segments of the Australia market. The Index aimsto target sector weights that reflect the relative sector weights ofthe Parent Index to limit the systematic risk introduced by the ESGselection process. Overall, the Index targets coverage of 50% of theParent index. 

Eligibility for index inclusion is determined based on the following criteria:

 ► ESG Ratings: The Index uses MSCI ESG Ratings to identify companies that have demonstrated an ability to manage their ESG risks and opportunities. Companies are required to have an MSCI ESG Rating of ‘BB’ or above to be eligible for inclusion in the Index.  ► ESG Controversies Score: The Index uses MSCI ESG Controversies Scores to identify companies that are involved in very serious controversies involving the environmental, social, or governance impact of their operations and/or products and services. Companies are required to have an MSCI ESG Controversies Score of 3 or above to be eligible for inclusion in the Index.  ► Controversial Business Involvement: In addition to meeting the ESG Rating and Controversy Score requirements, business involvement screens are applied to identify companies that are involved in controversial business activities.   Certain companies engaged in thefollowing activities are screened from the index depending on their typeof involvement in the industry (e.g. producer or distributor) andwhether they meet applicable revenue threshold.