
Why active matters in the US
Key Points
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01
Unlocking alpha opportunities in US equities
BGF US Flexible Equity Fund is built for today’s concentrated U.S. market. Rather than relying heavily on a small number of dominant companies, the fund invests actively across the U.S. market flexibly balancing opportunities to help investors access a wider range of potential growth opportunities.
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02
Identifying opportunities with research and AI
Combining detailed company research with sophisticated AI tools and data helps Blackrock’s experienced U.S. equities team identify the companies to invest in. There is no guarantee that research capabilities will contribute to a positive investment outcome.
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03
Investing in companies with earning growth potential
When selecting investments, the team focuses on companies where they believe earnings can grow more strongly than the market expects over the next three to five years.
There can be no guarantee that the investment strategy can be successful, and the value of investments may go down as well as up.
BGF US Flexible Equity Fund
The U.S. remains home to many of the world’s leading companies and continues to offer attractive growth opportunities. While recent market returns have been driven by a small number of large companies, opportunities are increasingly emerging across a wider range of businesses. The BGF US Flexible Equity Fund seeks to capture these opportunities through a diversified portfolio focused on companies with strong earnings potential and supported by a disciplined approach to risk management.
Portfolio Managers’ current process, which is subject to change without notice
Listen to our podcast interview with BGF US Flexible Equity Fund Portfolio Manager, Ibrahim Kanan.
Frequently asked questions
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Active investing involves portfolio managers selecting stocks based on research rather than tracking an index. The aim is to outperform the market or manage risk more effectively across different market conditions.
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US equity indices are highly concentrated in a small number of mega cap stocks. Active managers can diversify exposure, manage concentration risk and identify opportunities beyond index heavyweights as market leadership broadens.
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Yes, particularly during periods of market dispersion, heightened volatility or shifting economic conditions. Active strategies can differentiate between leaders and laggards, manage downside risk and adapt as fundamentals change.
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Unlike index-tracking strategies, active portfolios are not required to hold stocks according to market capitalisation weightings. This allows managers to limit exposure to the largest stocks and build more balanced, diversified portfolios.
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BGF US Flexible Equity Fund is an actively managed US equity Fund aiming to maximise return through a combination of capital growth and income.
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Flexibility refers to the portfolio managers’ ability to invest across growth and value styles and adjust positioning as market conditions evolve, rather than being constrained by index weightings.
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US equity indices are highly concentrated in a small number of mega cap stocks.1 The fund’s active approach allows for diversified exposure and risk control while seeking opportunities beyond index heavyweights.
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Unlike passive strategies, the fund is not required to hold companies in line with market capitalisation weights. This allows the portfolio to limit exposure to the largest stocks and build a more balanced allocation across sectors and companies.
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The fund typically invests in large cap US equities and blends growth and value characteristics, with positioning guided by fundamentals, earnings outlook and market conditions.
Portfolio Managers’ current process, which is subject to change without notice.
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The fund can serve as a core US equity allocation, offering active diversification, stock selection and downside awareness within a highly concentrated market.
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Yes. The fund is managed in line with BlackRock’s ESG policy classified Article 8 under the Sustainable Finance Disclosures Regulation (SFDR). This means that the Fund promotes, among other features, environmental or social characteristics and that the companies in which investments are made follow good governance practices.
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The fund may suit investors seeking actively managed US equity exposure, with a focus on fundamental stock selection, flexibility across market styles and disciplined risk management.
1BlackRock, Investing in the best of the rest, March 2 2026