BlackRock Global Funds (BGF) Class A shares explained

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.

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.

A6 Stable Income

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.

Explanation of A8 IRD calculation

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.

Example A6 Stable

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 very long-term.

Portfolio income capita

Share class comparison

Table Share classes comparison

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

A6 Share Class

A8 Share Class

A10 Share Class

Hedged Share Class