Summary of Investment Objective
The Global Allocation Fund seeks to maximise total return. The Fund invests globally in equity,debt and short term securities, of both corporate and governmental issuers, with no prescribed limits. In normal market conditions the Fund will invest at least 70% of its total assets in the securities of corporate and governmental issuers. The Fund generally will seek to invest in securities that are, in the opinion of the Investment Adviser, undervalued. The Fund may also invest in the equity securities of small and emerging growth companies. The Fund may also invest a portion of its debt portfolio in high yield fixed income transferable securities. Currency exposure is flexibly managed.
Fund Manager's Report (as at Jul 31, 2010)
The Fund underperformed its benchmark in July.
Detracting from the Fund’s performance was stock selection and an underweight in the US, stock selection and an overweight in Canada, and an overweight in Japanese equities. In addition the Fund’s underweight exposure to a number of European equity markets, including Spain, the United Kingdom, Italy and Greece weighed on returns. Contributing favorably to the Fund’s performance was stock selection in Taiwan, the UK, and Japan, and an underweight and stock selection in Germany and Switzerland. From a sector perspective, the Fund benefitted from stock selection in information technology, an underweight to consumer staples and an overweight and stock selection in energy. Detracting from returns was stock selection and underweight allocations in financials and industrials and stock selection in materials, notably in gold-related securities. The Fund’s performance benefitted from its allocation to convertible bonds.
During the month, the BGF Global Allocation Fund’s overall equity allocation increased from 58% to 62% of net assets. The largest increases were made within the US and Europe. On a sector basis, the Fund increased its weightings in financials, energy and utilities and slightly decreased exposure to Health Care and Materials. The Fund’s allocation to fixed income remained relatively unchanged at 32% of net assets. Cash equivalents decreased from 10% to 5% of total net assets.
Compared to its reference benchmark, BGF Global Allocation Fund’s asset allocation is underweight fixed income and overweight cash equivalents and equities.
Fund Fact (as at Jul 31, 2010 )
| Status | Sub-Fund of Luxembourg SICAV |
| Fund Manager | Dennis Stattman |
| Launch Date | Jan 3, 1997 |
| Base Currency | USD ($) |
| Additional Dealing Currencies | AUD ($), CHF (Fr.), EUR (€), GBP (£), PLN (PLN), SGD ($) |
| Benchmark | Composite (Glb Alloc) |
| Morningstar Sector | Asset Allocation Global Flex (USD) |
| Total Fund Size (m) | USD ($) 13590.6 |
| EUSD Fund Attributes | |
| EUSD Fund Status | in scope, distributions and redemptions |
| Information Source | Portfolio Composition |
| Application Threshold | >40% |
| Holding in Debt Claims | 45.49% |
| Grandfathered Bonds Held | 0.01% |
| 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) | 1.50 |
| Initial Charge (A shares) | 5 |
| Codes | |
| ISIN | LU0072462426 |
| Bloomberg Equity Ticker | MERGAAI LX |
| Reuters Page Id | BLRKIO |
| Swiss Valoren Number | 567972 |
| CUSIP | L1049H415 |
| Research Ratings | |
| Morningstar Qualitative Rating | Elite |
| Crosby Forsyth Rating | A |
| S&P Fund Management Rating | AAA |
| Fund Risk Statistics | |||
|---|---|---|---|
| Name | 3 Years | 5 Years | Since Launch |
| Beta | 0.93 | 0.94 | 0.95 |
| Volatility (Annualised Standard Deviation) | |||
| Global Allocation Fund | 13.8% | 11.3% | 11.1% |
| Composite (Glb Alloc) | 14.1% | 11.4% | 10.1% |
Risk Grading
Low
High
Non-distributing
Important Information
‡ 36% S&P 500 Composite; 24% FTSE World (ex-US); 24% ML US Treasury Current 5 Year; 16% Citigroup Non-USD World Government Bond Index
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 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 Risk (on a scale of Low, Medium, Medium/High and High). This grading applies to Funds with exposure to capital market risk but where any equity exposure is balanced by exposure to high-quality bonds. 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.