Summary of Investment Objective
The United Kingdom Fund seeks to maximise total return. The Fund invests at least 70% of its total assets in the equity securities of companies domiciled in, or exercising the predominant part of their economic activity in, the UK.
Fund Manager's Report (as at Jun 30, 2010)
The Fund underperformed its benchmark over the quarter.
Rio Tinto and BHP Billiton underperformed on concerns around the Australian Resource Super Profits Tax proposals and within banks. Barclays detracted as European sovereign fears had impacted confidence in the banking system and on lower investment bank profits at BarCap. Elsewhere, Carnival slipped despite announcing robust Q2 results with investors disappointed that the company did not raise guidance for the second half of the year. On the positive side, a favourable US court ruling upholding AstraZeneca's intellectual property around Crestor, its largest product, helped the shares outperform. Admiral outperformed as higher insurance premiums and gains in market share led to a 28% increase in revenues, while Compass continued to deliver margin growth. Within oils, our underweight position in BP provided a significant contribution to relative performance following the large fall in the share price.
During the quarter, we purchased new positions in engineer IMI, brewer SABMiller and car distributor Inchcape. We purchased copper miner Antofagasta and added to Xstrata, while reducing exposure to precious metals, selling Petropavlovsk and Aquarius Platinum.
The US and Asian economies are continuing their recovery and many of our investee companies are seeing further improvements in trading. The outlook for the UK and European economies is somewhat less clear due to significant fiscal tightening ahead. However, ultimately we believe that the recovery in the corporate sector will not be derailed by the economic consequences of the reduction in government spending.
Fund Fact (as at Jun 30, 2010 )
| Status | Sub-Fund of Luxembourg SICAV |
| Fund Manager | James Macpherson |
| Launch Date | Dec 31, 1985 |
| Base Currency | GBP (£) |
| Additional Dealing Currencies | EUR (€), USD ($) |
| Benchmark | FTSE All-Share |
| Morningstar Sector | Equity United Kingdom |
| Total Fund Size (m) | GBP (£) 302.4 |
| EUSD Fund Attributes | |
| EUSD Fund Status | out of scope |
| Fees | % |
| Annual Management Fee (A shares) | 1.50 |
| Initial Charge (A shares) | 5 |
| Codes | |
| ISIN | LU0011847091 |
| Bloomberg Equity Ticker - Fund | MIGSUKI LX |
| Bloomberg Equity Ticker - Benchmark | ASX |
| Reuters Page Id | BLRKII |
| Swiss Valoren Number | 618487 |
| CUSIP | L1049K780 |
| Research Ratings | |
| Morningstar Qualitative Rating | Superior |
| S&P Fund Management Rating | AA |
| Fund Risk Statistics | |||
|---|---|---|---|
| Name | 3 Years | 5 Years | Since Launch |
| Beta | 1.03 | 1.03 | 0.97 |
| Volatility (Annualised Standard Deviation) | |||
| United Kingdom Fund | 20.6% | 17.1% | 16.8% |
| FTSE All-Share | 19.3% | 16.1% | 16.3% |
Risk Grading
Low
High
Non-distributing
Important Information
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.
On 22 July 2005 the BlackRock Offshore Sterling Trust (MLOST) United Kingdom Fund merged into the BGF United Kingdom Fund.
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 Jun 30, 2010 in GBP on a NAV price basis with income reinvested. Fund performance figures are calculated net of fees.