Summary of Investment Objective
The World Mining Fund seeks to maximise total return. The Fund invests globally at least 70% of its total assets in the equity securities of mining and metals companies whose predominant economic activity is the production of base metals and industrial minerals such as iron ore and coal. The Fund may also hold the equity securities of companies whose predominant economic activity is in gold or other precious metal or mineral mining. The Fund does not hold physical gold or metal.
Fund Manager's Report (as at Jul 31, 2010)
The Fund outperformed its benchmark over the month*.
Strong performance has come from the Fund's holdings in copper companies as the copper price rallied over the month, due to increasing risk appetite and a more positive outlook for the global economy. We gained some positive relative performance from our holding in the bulk commodities sector which continues to benefit from strong commodity prices and quarterly pricing mechanisms. The Fund's underweight to gold was beneficial as gold stocks underperformed base metals.
We instigated a new position in a Russian mining company, increasing the Fund's exposure to palladium and nickel.
The medium to long-term outlook for the mining sector appears robust. Emerging markets forecasts continue to exhibit strong growth while supply remains constrained in its ability to meet demand. Whilst some investors may be fearful of monetary policy change in China, we view this as a long-term positive as it is indicative of a strong economy and a government that is looking to manage that growth. However, in the short-term volatility in the sector is likely with general market sentiment having a greater effect on equity markets than commodity-specific drivers. In this environment, stock selection and commodity selection will be key in order to take advantage of opportunities.
*Reported Fund performance relative to its benchmark over the month was negatively affected by the timing differential between pricing of the Fund and its benchmark.
Fund Fact (as at Jul 31, 2010 )
| Status | Sub-Fund of Luxembourg SICAV |
| Fund Manager | Evy Hambro |
| Launch Date | Mar 24, 1997 |
| Base Currency | USD ($) |
| Additional Dealing Currencies | CHF (Fr.), EUR (€), GBP (£), PLN (PLN), SGD ($) |
| Benchmark | HSBC Global Mining (cap) |
| Morningstar Sector | Sector - Commodity & Natural Resources |
| Total Fund Size (m) | USD ($) 13537.2 |
| EUSD Fund Attributes | |
| EUSD Fund Status | out of scope |
| Fees | % |
| Annual Management Fee (A shares) | 1.75 |
| Initial Charge (A shares) | 5 |
| Codes | |
| ISIN | LU0075056555 |
| Bloomberg Equity Ticker | MIGWMFA LX |
| Reuters Page Id | BLRKIP |
| Swiss Valoren Number | 620823 |
| CUSIP | L1049M786 |
| Research Ratings | |
| Morningstar Qualitative Rating | Elite |
| Crosby Forsyth Rating | AAA |
| S&P Fund Management Rating | AAA |
| Fund Risk Statistics | |||
|---|---|---|---|
| Name | 3 Years | 5 Years | Since Launch |
| Beta | 1.01 | 1.00 | 1.01 |
| Volatility (Annualised Standard Deviation) | |||
| World Mining Fund | 43.0% | 36.2% | 31.4% |
| HSBC Global Mining (cap) | 41.8% | 35.6% | 30.3% |
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.
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. The fund invests in a limited number of market sectors. Compared to investments which spread investment risk through investing in a variety of sectors, share price movements may have a greater affect on the overall value of this fund. The fund invests in economies and markets which may be less developed. Compared to more established economies, the value of investments may be subject to greater volatility due to increased uncertainty as to how these markets operate. The fund typically invests in smaller company shares which can be more unpredictable and less liquid than those of larger company shares. 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: 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.Performance is shown as at Jul 31, 2010 in USD on a NAV price basis with income reinvested. Fund performance figures are calculated net of fees.