BGF Asia Pacific Equity Income Fund - Class A
Summary of Investment Objective
The Asia Pacific Equity Income Fund seeks an above average and growing income from its equity investments without sacrificing long term capital growth. The Fund invests at least 70% of its total assets in equity securities of companies domiciled in, or exercising the predominant part of their economic activity in, the Asia Pacific region excluding Japan.
The Asia Pacific Equity Income Fund seeks an above average income from its equity investments without sacrificing long term capital growth. The Fund invests at least 70% of its total assets in equity securities of companies domiciled in, or exercising the
predominant part of their economic activity in, the Asia Pacific region excluding Japan. This Fund distributes income gross of expenses.
Fund Manager's Report (as at Jul 31, 2010)
The Fund outperformed its benchmark over the month. Australian banks surged after it was announced that the Basel 3 banking regulations were to be made less stringent. Westpac and Commonwealth Bank of Australia were particularly prominent contributors to performance.Chinese property and materials stocks rallied in response to the government's annoucement that RMB60bn would be spent on low-cost housing in the country's western provinces. The fund's holdings in Shenzhen Investment, Shimao Property and China Shanshui Cement added significant value. As investor sentiment improved, some defensive stocks fell, including our holdings in China’s Huaneng Power International and Korea’s KT Corp.
Yield signals saw us increase the weight in Australian banks early in July, through a new stake in Commonwealth Bank of Australia. Australian banks are steady sources of dividend yield and remained fundamentally un-loved by the market despite the recent rebound. With the Australian economy in decent shape and unemployment at low levels, we maintain conviction in our core position in this area. We reduced the weighting in Korea, taking some profit and liquidating the holding in POSCO. However we also established a new position in LG Electronics which has been weak due to its exposure to Europe. We feel that this is now priced in, along with the probability of an earnings downgrade.
Investor sentiment is likely to remain fragile in the short-term due to the loss of momentum in global economic growth and the probability of negative earnings revisions. Chinese policy also remains a key factor and we perceive a slight move to a pro-growth stance as inflation worries recede. Our largest geographical position is in Australia, particularly financials. The sector should continue to benefit from a robust economy and the possible removal of the Chinese policy overhang. We also have a significant position in China. Property prices remain elevated, prompting speculation that further punitive action will be taken. However increased supply may force property prices down in Q3, removing the need for further action in the near term and providing reassurance to the equity market.
Fund Fact (as at Jul 31, 2010 )
| Status | Sub-Fund of Luxembourg SICAV |
| Fund Manager | Joshua Crabb |
| Re-Launch Date | Sep 18, 2009 |
| Base Currency | USD ($) |
| Additional Dealing Currencies | HKD ($), SGD ($) |
| Benchmark | MSCI AC AsiaPac ex Japan (Net) |
| Morningstar Sector | Equity Asia Pacific ex Jap |
| Total Fund Size (m) | USD ($) 27.3 |
| EUSD Fund Attributes | |
| EUSD Fund Status | out of scope |
| Fees | % |
| Annual Management Fee (A shares) | 1.50 |
| Initial Charge (A shares) | 5 |
| Codes | |
| ISIN | LU0414403419 |
| Fund Risk Statistics | |||
|---|---|---|---|
| Name | 3 Years | 5 Years | Since Launch |
| Beta | - | - | - |
| Volatility (Annualised Standard Deviation) | |||
| Asia Pacific Equity Income | - | - | - |
| MSCI AC AsiaPac ex Japan (Net) | - | - | - |
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 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 a concentrated portfolio of investments and should a particular investment decline in value, this will have a pronounced effect on the overall value of the fund. Investors in this Fund should understand that capital
growth is not a priority and values may fluctuate and the level of income may vary from time to time and is not 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.