Summary of Investment Objective
The World Financials Fund seeks to maximise total return. The Fund invests globally at least 70% of its total assets in the equity securities of companies whose predominant economic activity is financial services.
Fund Manager's Report (as at Jul 31, 2010)
The Fund underperformed its benchmark over the month*.
Stock selection in commercial banks and an overweight position in IT services name Visa detracted from performance. Individual names weighing on performance included ICBC and Mitsubishi Estate. Geographically, underweight positions in Spain and Sweden as well as an overweight position in China detracted. On the positive side, contributions to performance came from stock selection in insurance, capital markets and REITs. Individual holdings Dnb Nor Asa, Berkshire Hathaway and Axa also helped relative returns. Geographically, the primary contributors to performance were an overweight position in Norway, an underweight position in Japan and stock selection in the United States.
During the month, the Fund added to its capital markets and real estate management & development exposure while we reduced exposure to diversified financial services and insurance. Geographically, the Fund increased exposure to China, France, Germany and Norway while reducing exposure to the United States, Singapore, Japan and Thailand.
As at month-end, the Fund was overweight commercial banks and IT services and underweight diversified financial services, capital markets and insurance. Geographically, the Fund was overweight Norway and China and underweight Japan, Spain and Hong Kong. We continue to take advantage of the volatility in markets to buy stocks trading below their intrinsic value and believe the sector will perform well as the global economy gradually recovers.
*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 | Lisa Walker |
| Launch Date | Mar 3, 2000 |
| Base Currency | USD ($) |
| Additional Dealing Currencies | EUR (€) |
| Benchmark | MSCI World Financials Net |
| Morningstar Sector | Sector - Finance |
| Total Fund Size (m) | USD ($) 245.8 |
| EUSD Fund Attributes | |
| EUSD Fund Status | out of scope |
| Fees | % |
| Annual Management Fee (A shares) | 1.50 |
| Initial Charge (A shares) | 5 |
| Codes | |
| ISIN | LU0106831901 |
| Bloomberg Equity Ticker - Fund | MERFSPA LX |
| Bloomberg Equity Ticker - Benchmark | NDWUFNCL |
| Reuters Page Id | BLRKIS |
| Swiss Valoren Number | 1039516 |
| CUSIP | L1049M422 |
| Fund Risk Statistics | |||
|---|---|---|---|
| Name | 3 Years | 5 Years | Since Launch |
| Beta | 0.86 | 0.88 | 0.90 |
| Volatility (Annualised Standard Deviation) | |||
| World Financials Fund | 30.0% | 26.3% | 23.0% |
| MSCI World Financials Net | 33.9% | 27.1% | 23.1% |
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 may be exposed to finance sector companies, as a service provider or as counterparty for financial contracts. In recent months, liquidity in the financial markets has become severely restricted, causing a number of firms to withdrawn from the market, or in some extreme cases, becoming insolvent. This may have an adverse affect on the activities of the fund. 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.