The opinions expressed are those of BlackRock as of October2012 and are subject to change at any time due to changes in market or economic conditions. This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any strategy. BlackRock has not considered the suitability of investment against your individual needs and risk tolerance. To ensure you understand whether our product is suitable, please read the Key Investor Information Document. Any decision to invest must be based solely on the information contained in the Prospectus, Key Investor Information Document and the latest half-yearly report and unaudited accounts and/or annual report and audited accounts. Investors should read the fund specific risks in the Key Investor Information Document and the Prospectus. We strongly recommend that you seek professional advice prior to investing.
All financial investments involve an element of risk. The value of your investment and the income from it will vary and your initial investment amount cannot be guaranteed. Past performance is not a guide to future performance and should not be the sole factor of consideration when selecting a product. Overseas investments may involve risk of capital loss from unfavourable fluctuation in currency values, from differences in generally accepted accounting principles or from economic or political instability in other nations. Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume. Two main risks related to fixed income investing are interest rate risk and credit risk. Typically, when interest rates rise, there is a corresponding decline in the market value of bonds. Credit risk refers to the possibility that the issuer of the bond will not be able to repay principal and make interest payments. Under certain market conditions, liquidity in bond markets may fall significantly without warning. Therefore it may not be possible to sell a security at the last quoted price or at a value considered to be fair. In extreme market conditions, it may be difficult to realise your investments.
The strategies utilised by absolute return funds involve the use of complex derivatives to facilitate certain investment management techniques including the establishment of both ‘long’ and ‘synthetic short’ positions and creation of market leverage for the purposes of increasing the economic exposure of a fund beyond the value of its net assets. The use of derivatives in this manner may have the effect of increasing the overall risk profile of the fund.
Funds specialising in commodities or property will seek exposure to a limited number of market sectors. Compared to funds which spread investment risk more generally through a variety of sectors, price movements may have a greater effect on the overall value of the fund. These funds typically invest in smaller company shares which can be more unpredictable and less liquid than those of larger company shares.
iShares ETFs track a benchmark and holdings are not altered during rising or falling markets. Some iShares ETFs are optimised and therefore may not hold all securities within the benchmark index. Performance may differ from the underlying benchmark index. iShares ETFs trade on exchanges intraday at the current market price which may differ from net asset value. Transaction or brokerage fees will apply. Liquidity is not guaranteed.
iShares Physically-backed Exchange Traded Commodities (“iShares Physical ETCs”) are a series of debt securities issued by iShares Physical Metals plc that are fully backed by physical holdings of the relevant precious metal in secured vaults. iShares Physical Metals plc are limited recourse obligations which are payable solely out of the underlying secured property. If the secured property is insufficient any outstanding claims will remain unpaid.
iShares Physical ETCs seek to track a benchmark and holdings are not altered during rising or falling markets. Performance may differ from the underlying benchmark index. iShares Physical ETCs trade on exchanges intraday at the current market price which may differ from net asset value. Transaction or brokerage fees apply. Liquidity is not guaranteed. The securities are priced in US Dollars and so the value of investment in other currencies will be affected by exchange rate movements.
Trends which occur within the general equity market may not be mirrored within these specialist funds.
Diversification and asset allocation may not protect you fully against market risk.
Issued by BlackRock Investment Management (UK) Limited (authorised and regulated by the Financial Services Authority). Registered office: 12 Throgmorton Avenue, London, EC2N 2DL. Registered in England No. 2020394. Tel: 020 7743 3000. For your protection, telephone calls are usually recorded. BlackRock is a trading name of BlackRock Investment Management (UK) Limited.
© 2012 BlackRock, Inc. All Rights reserved. BLACKROCK, BLACKROCK SOLUTIONS, ALADDIN, iSHARES, LIFEPATH, SO WHAT DO I DO WITH MY MONEY, INVESTING FOR A NEW WORLD, and BUILT FOR THESE TIMES are registered and unregistered trademarks of BlackRock, Inc. or its subsidiaries in the United States and elsewhere. All other trademarks are those of their respective owners.