Summary of Investment Objective
The World Gold 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 gold-mining. It may also invest in the equity securities of companies whose predominant economic activity is other precious metal or mineral and base 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*.
Large cap gold companies underperformed despite strong earnings results, as investor risk appetite increased favouring the higher growth producers to which the portfolio is exposed. This contributed positively as the Fund remains structurally underweight the large cap majors. Good relative performance came from a number of our platinum and silver holdings. Impala was a positive contributor as the market began to differentiate between those producers likely to suffer from increased government pressure on safety in South Africa versus those that are operationally superior. Fresnillo, a Mexican silver miner, also performed well as the company reported its Q2 results which were around 5% ahead of consensus estimates for earnings per share. The company continues with development plans across a number of operations, including the exciting Juanicipio project. Fresnillo is the one of the world’s top silver producers.
We initiated a position in a new company, Primero, who recently bought the San Dimas mine from Goldcorp. The new management believes they will be able to significantly improve the mining method and production at the site, and use this as a base to form a new high growth mining company in Mexico. We also invested in Andean Resources who are developing the Cerro Negro project in the Santa Cruz province of Argentina .
Whilst uncertainty remains in financial markets and concerns shift around sovereign debt persist, investors may continue to look to gold as a safe haven asset and an alternative currency (particularly in light of the ongoing volatility in currency markets).*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 | Dec 30, 1994 |
| Base Currency | USD ($) |
| Additional Dealing Currencies | CHF (Fr.), EUR (€), SGD ($) |
| Benchmark | FTSE Gold Mines (cap) |
| Morningstar Sector | Sector - Gold & Precious Metals |
| Total Fund Size (m) | USD ($) 7032.1 |
| EUSD Fund Attributes | |
| EUSD Fund Status | out of scope |
| Fees | % |
| Annual Management Fee (A shares) | 1.75 |
| Initial Charge (A shares) | 5 |
| Codes | |
| ISIN | LU0055631609 |
| Bloomberg Equity Ticker - Fund | MIGGMFI LX |
| Bloomberg Equity Ticker - Benchmark | FTMIGMI |
| Reuters Page Id | BLRKIK |
| Swiss Valoren Number | 333541 |
| CUSIP | L1049M497 |
| 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 | 0.90 | 0.91 | 0.89 |
| Volatility (Annualised Standard Deviation) | |||
| World Gold Fund | 43.6% | 38.0% | 36.0% |
| FTSE Gold Mines (cap) | 46.5% | 40.4% | 38.3% |
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.
Effective 15 January 2010 - Graham Birch, who has been on sabbatical since March 2009, has decided he will now not be returning to BlackRock. Evy Hambro will continue to manage the BGF World Gold Fund as he has since Graham departed on sabbatical.
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.