Summary of Investment Objective
The US Flexible Equity 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 US. The Fund normally invests in securities that, in the opinion of the Investment Adviser, exhibit either growth or value investment characteristics, placing an emphasis as the market outlook warrants.
Fund Manager's Report (as at Jul 31, 2010)
The Fund underperformed its benchmark over the month*.
Underperformance stemmed from stock selection in information technology (software) and in industrials. Our best performing stock was Titanium Metals; our worst performers were Western Digital and Micron Technology.
During the month, we increased our weighting in information technology, funding the increase by reductions in materials and industrials. Our largest purchases were Citigroup, Regions Financial, Sprint Nextel, Motorola and News Corp. Our largest sales were Johnson & Johnson, Freeport-McMoran Copper & Gold, Walgreen’s, Northrop Grumman, and Eaton Corp.
We are attempting to maintain a balanced portfolio between global cyclicals and more dependable growth opportunities. Our largest overweights include consumer discretionary, healthcare and materials, while our largest underweights include financials, consumer staples and industrials.
Regarding investment style, at month-end, growth companies comprised 32.1% of the Fund’s net assets, value accounted for 51.6%, and the balance of 16.3% was in blend stocks. Capitalisation was roughly 49.3% large caps and 50.7% small and mid caps.
*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 | Bob Doll |
| Launch Date | Oct 31, 2002 |
| Base Currency | USD ($) |
| Additional Dealing Currencies | EUR (€), GBP (£) |
| Benchmark | Russell 1000 |
| Morningstar Sector | Equity North America |
| Total Fund Size (m) | USD ($) 1988.1 |
| EUSD Fund Attributes | |
| EUSD Fund Status | out of scope |
| Fees | % |
| Annual Management Fee (A shares) | 1.50 |
| Initial Charge (A shares) | 5 |
| Codes | |
| ISIN | LU0154236417 |
| Bloomberg Equity Ticker - Fund | MLFLEUA LX |
| Bloomberg Equity Ticker - Benchmark | RU10INTR |
| Reuters Page Id | BLRKIS |
| Swiss Valoren Number | 1501042 |
| CUSIP | L1049L457 |
| Research Ratings | |
| Morningstar Qualitative Rating | Superior |
| Crosby Forsyth Rating | AA |
| S&P Fund Management Rating | A |
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) North American Fund merged into the BGF US Flexible Equity 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 Jul 31, 2010 in USD on a NAV price basis with income reinvested. Fund performance figures are calculated net of fees.