Summary of Investment Objective
The Euro-Markets Fund seeks to maximise total return. The Fund invests at least 70% of its total assets in the equity securities of companies domiciled in those EU Member States participating in EMU. Other exposure may include, without limitation, investments in those EU Member States that, in the opinion of the Investment Adviser, are likely to join EMU in the foreseeable future and companies based elsewhere that exercise the predominant part of their economic activity in EMU-participating countries.
Fund Manager's Report (as at Jul 31, 2010)
The Fund outperformed its benchmark over the month.
During the month,both sector strategy and stock selection were positive. In terms of sector allocation, the Fund benefited from an overweight in banks, and an underweight in pharmaceuticals and consumer staples. Stock selection within the financial sector, particularly banks, was positive as the sector rallied post benign stress test results and less stringent terms for the impending Basel III legislation. Specifically, the Fund’s lower valued, higher beta names such as Societe Generale, BNP, Unicredit and Bank of Cyprus had the strongest contribution. Elsewhere, KoneCranes and Fiat were strong performers after reporting robust second quarter earnings. The stocks to detract included Bilfinger Berger after the IPO of its Australian business was delayed. Other stocks to have a negative contribution included Heidelberg Cement and Wincor Nixdorf.
Activity over the month was stock specific and the Fund established new positions in luxury goods retailer LVMH, investment bank Deutsche Bank, low budget airline operator Ryan Air and telecom company Deutsche Telekom. These purchases were mainly funded by taking profits in food retailer Ahold and diversified engineer Philips.
At month-end, the BGF Euro-Markets Fund was overweight industrials, consumer discretionary (through media and autos) and information technology. The Fund was underweight consumer staples, utilities and materials. In terms of country positioning, the Fund is currently overweight Germany, Italy and Finland and underweight France, Belgium and Spain.
Fund Fact (as at Jul 31, 2010 )
| Status | Sub-Fund of Luxembourg SICAV |
| Fund Manager | Alice Gaskell/Andreas Zoellinger |
| Launch Date | Jan 4, 1999 |
| Base Currency | EUR (€) |
| Additional Dealing Currencies | GBP (£), USD ($) |
| Benchmark | MSCI EMU net |
| Morningstar Sector | Equity Euroland |
| Total Fund Size (m) | EUR (€) 1544.9 |
| EUSD Fund Attributes | |
| EUSD Fund Status | out of scope |
| Fees | % |
| Annual Management Fee (A shares) | 1.50 |
| Initial Charge (A shares) | 5 |
| Codes | |
| ISIN | LU0093502762 |
| Bloomberg Equity Ticker | MEREMAI LX |
| Reuters Page Id | BLRKIC |
| Swiss Valoren Number | 995890 |
| CUSIP | L1049G300 |
| Research Ratings | |
| Morningstar Qualitative Rating | Elite |
| S&P Fund Management Rating | AA |
| Fund Risk Statistics | |||
|---|---|---|---|
| Name | 3 Years | 5 Years | Since Launch |
| Beta | 0.98 | 0.99 | 0.93 |
| Volatility (Annualised Standard Deviation) | |||
| Euro-Markets Fund | 23.2% | 19.5% | 19.3% |
| MSCI EMU net | 23.1% | 19.4% | 20.1% |
Risk Grading
Low
High
Non-distributing
Important Information
‡ On 3 January 2005 the benchmark changed from the Dow Jones Euro Stoxx 50 to the MSCI EMU Index (new index to be "spliced" with the history of the old benchmark).
The information on this website is available to Qualified Investors and Professionals in some jurisdictions on a limited private placement basis subject to applicable laws and regulations in the country of distribution. The information is confidential and should not be reproduced or distributed to persons other than the recipient.
The investment objective stated above is a summary of the main objectives of the Fund. Please refer to the BGF prospectus for full details.
A limited range of BGF sub-funds have a distributor status A share class that seeks to comply with UK Distributor Status requirements. Please contact the Manager for more information.
The fund invests a large portion of assets which are denominated in other currencies; hence changes in the relevant exchange rate will affect the value of the investment. Past performance is not a guide to future performance and should not be the sole factor of consideration when selecting a product. All financial investments involve an element of risk. Therefore, the value of your investment and the income from it will vary and your initial investment amount cannot be guaranteed.
BlackRock Global Funds (BGF) is an open-ended investment company established in Luxembourg which is available for sale in certain jurisdictions only. BGF is not available for sale in the U.S. or to U.S. persons. Product information concerning BGF should not be published in the U.S. It is recognised under Section 264 of the Financial Services and Markets Act 2000. BlackRock Investment Management (UK) Limited is the UK distributor of BGF. Most of the protections provided by the UK regulatory system, and the compensation under the Financial Services Compensation Scheme, will not be available. A limited range of BGF sub-funds have a distributor status A sterling share class that seeks to comply with UK Distributor Status requirements. Subscriptions in BGF are valid only if made on the basis of the current Prospectus, the most recent financial reports and the Simplified Prospectus which are available on our website. Prospectuses, Simplified Prospectuses and application forms may not be available to investors in certain jurisdictions where the Fund in question has not been authorised.
Sources: Fund – BlackRock Investment Management (UK) Limited (BIM(UK)L), Indices - Datastream, BIM(UK)L. Quartiles - Standard & Poor's. BIM(UK)L Risk Grading: High Risk (on a scale of Low, Medium, Medium/High and High). This grading applies to Funds with emerging market, small capitalisation, or narrowly focused/concentrated equity mandates, which may restrict liquidity and increase the volatility of returns. It should only be used for comparison with other BlackRock Global Funds (BGF) and, in particular, should not be used in comparison with Funds not provided by BIM(UK)L. The grading is indicative of the level of risk of a particular Fund and is not supposed to be a guarantee of likely returns. If you are in any doubt as to the level of risk that you should take, you should seek Independent Advice. BIM(UK)L Risk Grading: Medium/High Risk (on a scale of Low, Medium, Medium/High and High). This grading applies to Funds which may be expected to have all, or at least a high proportion, of their assets invested in equities, or in bonds rated below investment grade. It should only be used for comparison with other BlackRock Global Funds (BGF) and, in particular, should not be used in comparison with Funds not provided by BIM(UK)L. The grading is indicative of the level of risk of a particular Fund and is not supposed to be a guarantee of likely returns. If you are in any doubt as to the level of risk that you should take, you should seek Independent Advice.Performance is shown as at Jul 31, 2010 in EUR on a NAV price basis with income reinvested. Fund performance figures are calculated net of fees.