Carefully consider the Funds’ investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds’ prospectuses or, if available, the summary prospectuses which may be obtained by visiting blackrock.com/latamiberia. Read the prospectus carefully before investing.
The case for going global doesn’t stop at equities. Some of the best bargains today lie in international bonds. Also consider that the U.S. bond market, at $36 trillion in size, represents roughly one-third of the $96 trillion global bond market. Expanding the opportunity set internationally can aid portfolio diversification, a key tool for managing risk (even if it can’t promise gains or rule out losses).
Central banks play a part in this opportunity. As the Fed targets higher rates, policy stimulus is likely to prevail in Europe, where European Central Bank (ECB) bond buying should underpin government and corporate bonds. We see the ECB buying 4-5 billion euros of corporate debt per month in the primary market this year, roughly 15% of estimated monthly issuance, and some 1 billion euros per month in secondary markets.