Focus on high-quality shares

Reinvesting dividends can help grow wealth over the long term

The chart below shows the difference in returns of an investment in the MSCI AC World Index where dividends have been reinvested compared to just the change in share price only.

Past performance is not a guide to future performance. Investors cannot invest directly in an index. Source: BlackRock, DataStream. Returns shown from index inception 31/12/1990 to 31/08/2012, in sterling terms.

"So what do I do with my money?"

It’s no secret that some economies are struggling, but that doesn’t mean all companies are. Consider funds which invest in high quality companies with strong  balance sheets, robust business models, sound company management and attractive growth prospects in fast-growing areas of the world. Many of these companies also pay real and growing dividends, offering investors the flexibility to either draw their income to fund their lifestyle today or reinvest it to grow their total return in the long run.

The opinions expressed are those of BlackRock as of October 2012 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 unfavorable 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.

Investors in our equity income funds should understand that capital growth is not a priority.  Where fund charges are taken from capital, this will increase the level of income at the expense of capital growth.

Diversification and asset allocation may not protect you fully against market risk.

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