BlackRock Global Funds and A Share Classes Explained

IMPORTANT INFORMATION:

I. Investment involves risk, including the loss of principal. Past performance is not indicative of future results.

II. BlackRock Emerging Markets Local Currency Bond, ESG Multi-Asset, Euro Bond, Euro Corporate Bond

IMPORTANT INFORMATION:

I. Investment involves risk, including the loss of principal. Past performance is not indicative of future results.

II. BlackRock Emerging Markets Local Currency Bond Fund, BlackRock Euro Bond Fund, BlackRock Euro Corporate Bond Fund, BlackRock Euro Short Duration Bond Fund, BlackRock Fixed Income Global Opportunities Fund, BlackRock Global Corporate Bond Fund, BlackRock Global Government Bond Fund, BlackRock Global Inflation Linked Bond Fund, BlackRock Sustainable World Bond Fund, BlackRock US Dollar Bond Fund, BlackRock US Dollar Short Duration Bond Fund and BlackRock US Government Mortgage Impact Fund may use derivatives for hedging and extensively for investment purposes. Risks associated with derivatives include counterparty/credit, liquidity, valuation, volatility and market risks. The Funds’ volatility may increase or decrease from its derivative usage and may suffer losses.

III. BlackRock Euro Reserve Fund and BlackRock US Dollar Reserve Fund may use derivatives for hedging. The Funds may suffer losses from its derivative usage.

IV. Sub-funds of BlackRock Global Funds (except the Funds mentioned above) may use derivatives for hedging and for investment purposes. However, usage for investment purposes will not be extensive. The Funds may suffer losses from derivatives usage.

V. BlackRock Global Funds’ Class 3(G), Class 4(G) and Class 5(G) Shares pay dividends gross of expenses. Class 6 and Class 10 Shares pay dividends gross of expenses and/or from capital at the Directors’ discretion. Class 8 Shares pay dividends gross of expenses and/or from capital at the Directors’ discretion and include interest rate differentials arising from share class currency hedging. Negative interest rate differentials may decrease the dividends paid. Class 9 Shares pay dividends gross of expenses and/or from capital at the Directors’ discretion. Dividend payment on an annual basis must be at least equal to the Dividend Threshold Amount, and in the event of a shortfall, a material portion of any dividend payment may be made out of capital. The Dividend Threshold Amount may be reduced during the year and it is not an alternative to a savings account or fixed-interest paying investment. Paying dividends gross of expenses may result in more income being available for distribution; however, these shares may effectively pay dividends from capital – may amount to a partial return or withdrawal of an investor’s original investment or capital gains. All declared dividends result in an immediate reduction in the NAV price of the share class on the ex-dividend date.

VI. The value of the Funds can be volatile and can go down substantially within a short period of time. It is possible that a certain amount of your investment could be lost.

VII. Investors should not make investment decisions based on this document alone. Investors should refer to the Prospectus and Key Facts Statement(s) for details including risk factors.

When it comes to choosing the right investment, investors need to first consider what their investment objectives are. Some investors look for capital growth, others for regular income payments, while there are those who may want access to both. At BlackRock, we offer a diverse range of funds and share classes to help you meet your investment goals and income needs.

If long-term capital growth is your primary focus, our base share class - the A2 accumulating - sees all income and gains retained and reinvested into the fund for potential future returns.

For those investors who prefer to receive a regular payout, the A6, A8 and A10 share classes provide these options¹. The A6 is a distributing share class that aims to provide investors with a stable monthly dividend per share by smoothing gross income generated by a fund over time. The A8 share class also provides stable monthly dividends but in addition to income, it includes the net interest rate differential generated by share class -currency hedging, aiming to provide an extra source of payout. However, investors should be aware that interest rate differential can fluctuate due to interest rate movements, and can even be negative. In order to stabilize dividends from month-to-month, both A6 and A8 share classes may make distributions from capital. While the price appreciation for A6 and A8 is expected to be less than A2, the monthly income distributions could help to meet an investor’s cash flow needs.

Our A10 distributing share class is a newer option for investors looking for regular payouts. The A10 is a different concept which aims to distribute monthly payouts primarily from the long-term expected gross total return of a fund². As compared to A6 & A8, in addition to the potential income, it will take into consideration potential capital growth to determine payouts. A10 also has a mechanism in place to lower the risk of “over-distribution” in order to maintain a sustained payout over time. For example, if the fund’s actual total return³ is higher than expected, the payout may increase, and vice versa. We will review and adjust the payout level regularly as needed.

Simply put, A10 distributing class may be suitable for investors who are looking for a blend of both income and growth. It aims to “convert” some of the fund’s potential returns into monthly payouts, whilst still maintaining the net asset value of the fund. But it does so at the share class level, and not by the fund investing in more income-generating assets, giving its fund managers greater flexibility in their investment strategy.

When it comes to choosing the right investment, investors need to first consider what their investment objectives are. Some investors look for capital growth, others for regular income payments, while there are those who may want access to both. At BlackRock, we offer a diverse range of funds and share classes to help you meet your investment goals and income needs.

If long-term capital growth is your primary focus, our base share class - the A2 accumulating - sees all income and gains retained and reinvested into the fund for potential future returns.

For those investors who prefer to receive a regular payout, the A6, A8 and A10 share classes provide these options¹. The A6 is a distributing share class that aims to provide investors with a stable monthly dividend per share by smoothing gross income generated by a fund over time. The A8 share class also provides stable monthly dividends but in addition to income, it includes the net interest rate differential generated by share class -currency hedging, aiming to provide an extra source of payout. However, investors should be aware that interest rate differential can fluctuate due to interest rate movements, and can even be negative. In order to stabilize dividends from month-to-month, both A6 and A8 share classes may make distributions from capital. While the price appreciation for A6 and A8 is expected to be less than A2, the monthly income distributions could help to meet an investor’s cash flow needs.

Our A10 distributing share class is a newer option for investors looking for regular payouts. The A10 is a different concept which aims to distribute monthly payouts primarily from the long-term expected gross total return of a fund². As compared to A6 & A8, in addition to the potential income, it will take into consideration potential capital growth to determine payouts. A10 also has a mechanism in place to lower the risk of “over-distribution” in order to maintain a sustained payout over time. For example, if the fund’s actual total return³ is higher than expected, the payout may increase, and vice versa. We will review and adjust the payout level regularly as needed.

Simply put, A10 distributing class may be suitable for investors who are looking for a blend of both income and growth. It aims to “convert” some of the fund’s potential returns into monthly payouts, whilst still maintaining the net asset value of the fund. But it does so at the share class level, and not by the fund investing in more income-generating assets, giving its fund managers greater flexibility in their investment strategy.

At BlackRock, we offer a diverse range of funds and share classes to help you meet your investment goals and income needs. Below is a summary of selected monthly distributing share classes available in the BlackRock Global Funds (BGF) range. (Dividend payment is not guaranteed. The Fund may effectively pay dividends from capital ^{see Important Information v above}):

The A6 share class is a Distributing (S) Share which aims to pay investors a stable monthly dividend per share by smoothing income generated by a fund over time.

The A8 share class is a Distributing (R) Share which aims to pay investors a stable monthly dividend per share by smoothing income generated by a fund over time plus the net interest rate differential (IRD) arising from share class currency hedging.

IRD refers to the difference in interest rates between two currencies – in this case, the base currency of the fund and the share class’s currency. It will fluctuate due to interest rate movements, and can be positive, nil or negative.

The A10 share class is a Distribution (T) Share which aims to pay investors a stable monthly distribution per share based on the long-term expected gross total return of the fund. Over the short-term it may include income, realised gains/losses, unrealised gains/losses, and capital in order to provide a dividend distribution level that is sustainable over the long term.

Share class comparison

For more information, please read the following detailed introduction to each share class: