Summary of Investment Objective
The Asian Tiger Bond Fund seeks to maximise total return. The Fund invests at least 70% of its total assets in the fixed income transferable securities of issuers domiciled in, or exercising the predominant part of their economic activity in, Asian Tiger countries. The Fund may invest in the full spectrum of available securities, including non-investment grade. The currency exposure of the Fund is flexibly managed.
Fund Manager's Report (as at Jul 31, 2010)
The fund outperformed its benchmark in July.
Emerging market debt continued to perform well this month, driven by a broad rally in risk assets and continuing investor flows into the asset class. The fund's outperformance was generated with a higher liquidity profile and less risk than the benchmark. In terms of sectors, our overweight to sovereigns versus corporates aided performance. An overweight to Indonesia contributed positively as did security selection within the Philippines and an overweight to the Chinese property sector. In currencies, a long position in the Korean won also added value.
We participated in several new issue deals over the month including Indosat Palapa, a unit of Indonesia’s second largest telephone operator. The company has an attractive business model and strong ownership structure. We also initiated a position in South Korea's Woori Bank and participated in two new issue deals in India: ICICI Bank and State Bank of India. As a hedge for the overall portfolio we increased our long position in US treasury duration via an outright purchase of US treasury notes. We actively traded our currency exposure, increasing our long Korean won position and reducing our long Indian rupee position although we maintaining an overweight.
We maintain a higher degree of liquidity than the benchmark and do not think some of the more vulnerable Asian credits offer compelling value. We continue to manage our exposures to the Chinese property sector and continue to see value in Asian currencies. Asian economies are still outperforming other regions and remain on the path of recovery from the crisis. Strong growth fundamentals supported by the strength of sovereign balance sheets and local financial institutions; coupled with monetary and fiscal stimulus this should continue to provide opportunities for investing in Asia. Volatility is likely to continue throughout 2010 making downside protection key.
Fund Fact (as at Jul 31, 2010 )
| Status | Sub-Fund of Luxembourg SICAV |
| Fund Manager | Imran Hussain/Andrew Gordon |
| Launch Date | Feb 2, 1996 |
| Base Currency | USD ($) |
| Additional Dealing Currencies | HKD ($) |
| Benchmark | JPM Asian Credit Index (JACI) |
| Morningstar Sector | Fixed Income Asia Pacific ex Japan |
| Total Fund Size (m) | USD ($) 293.2 |
| Average Yield to Maturity (%) | 4.00% |
| Average Maturity (years) | 6.7 |
| Average Duration (years) | 3.6 |
| EUSD Fund Attributes | |
| EUSD Fund Status | in scope, distributions and redemptions |
| Information Source | Portfolio Composition |
| Application Threshold | >40% |
| Holding in Debt Claims | 89.49% |
| Grandfathered Bonds Held | 0.83% |
| Application Start Date | Jan 1, 2010 |
| Application End Date | Dec 31, 2010 |
| TID | 0.000000000 |
| Last Distribution Date | Aug 19, 2010 |
| Fees | % |
| Annual Management Fee (A shares) | 1.00 |
| Initial Charge (A shares) | 5 |
| Codes | |
| ISIN | LU0063729296 |
| Bloomberg Equity Ticker | MERATAA LX |
| Reuters Page Id | BLRKIW |
| Swiss Valoren Number | 430189 |
| CUSIP | L1049F245 |
| Fund Risk Statistics | |||
|---|---|---|---|
| Name | 3 Years | 5 Years | Since Launch |
| Beta | 1.00 | 1.01 | 0.76 |
| Volatility (Annualised Standard Deviation) | |||
| Asian Tiger Bond Fund | 12.0% | 9.6% | 8.1% |
| JPM Asian Credit Index (JACI) | 11.5% | 9.2% | 8.6% |
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 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: 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 USD on a NAV price basis with income reinvested. Fund performance figures are calculated net of fees.