Skip to content

BlackRock Emerging Markets Fund

Capital at risk. All financial investments involve an element of risk. Therefore, the value of the investment and the income from it will vary and the initial investment amount cannot be guaranteed.

 


3-5%

Tracking Error
Source: BlackRock as of 30 April 2019

50-70

Holdings
Source: BlackRock as of 30 April 2019

4,000

Company meetings conducted per year

3-5%

Tracking Error
Source: BlackRock as of 30 April 2019

50-70

Holdings
Source: BlackRock as of 30 April 2019

4,000

Company meetings conducted per year

Key Features

A flexible, pragmatic approach


A flexible, pragmatic approach

Emerging markets are inefficient, complex and cyclical which creates a fertile ground for active investing. By considering the cyclicality of emerging market equities, the team looks for investment opportunities beyond themes or trends. The strategy aims to capitalise on these market inefficiencies by seeking to identify inflection points in macroeconomic and political cycles to help guide country allocation decisions, overlaying these country allocations with compelling fundamentally-driven stock ideas which we believe can deliver returns beyond market expectations.

RISK: Investments in emerging markets may be subject to greater volatility than those in more established economies.

Diversified sources of alpha


Diversified sources of alpha

The team seek to generate alpha from multiple sources, from stock selection to asset allocation, style rotation and off-benchmark positions. Such flexibility has allowed us to add value across changing markets, outperforming the benchmark since inception.

RISK: Investments in emerging markets may be subject to greater volatility than those in more established economies. Past performance is not a reliable indicator of current or future results.

On-the-ground investment team


On-the-ground investment team

Gordon Fraser is lead portfolio manager and is responsible for portfolio construction and the day-to-day management of the strategy. As co-portfolio manager, Andrew Swan, Head of Emerging Markets and Asian Equities provides an oversight role. The two managers are supported by the research efforts of the team, which is compromised by 35 investment professionals located across the three key EM regions of Asia, Europe and the Americas. The team consists of 18 nationalities speaking over 25 languages. Rigorous debate is at the heart of our culture, helping us to identify the best opportunities.

The team’s principles are diversity, creativity, transparency, empowerment and accountability. These principles guide how the team run the research platform seeking to maximise alpha generation for our clients.

RISK: Investments in emerging markets may be subject to greater volatility than those in more established economies. Past performance is not a reliable indicator of current or future results.

Stock-specific, macro-focused


Stock-specific, macro-focused

The team searches for companies that are under-appreciated with the right valuations. While we are a team of stock pickers and assemble our portfolios with single stock ideas, we think understanding macro is paramount to guide us in which country we need to allocate capital. Our macro process is proprietary but we leverage the wider Blackrock platform to inform us on our macro convictions.

The macro process does not independently drive the portfolio’s asset allocation but guides portfolio managers. In general, macroeconomic analysis is a more dominant factor in investment decision-making when the outlook is either too negative or too positive. If the macroeconomic outlook for a given country is more, bottom up stock ideas tend to drive portfolio allocations.

RISK: Investments in emerging markets may be subject to greater volatility than those in more established economies. Past performance is not a reliable indicator of current or future results.

Risks

Capital at risk. All financial investments involve an element of risk. Therefore, the value of the investment and the income from it will vary and the initial investment amount cannot be guaranteed. You may not get back the amount originally invested. Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy. Changes in the rates of exchange between currencies may cause the value of investments to diminish or increase. Fluctuation may be particularly marked in the case of a higher volatility fund and the value of an investment may fall suddenly and substantially. Levels and basis of taxation may change from time to time.

Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy.

Fund-specific risks

Exchange Rate Risk: Overseas investment will be affected by movements in currency exchange rates.

Emerging market risk: Emerging market investments are usually associated with higher investment risk than developed market investments. Therefore the value of these investments may be unpredictable and subject to greater variation.

Credit Risk: The Fund invests in fixed interest securities issued by companies. There is a risk of default where the issuing company may not pay income or repay capital to the Fund when due.

Liquidity Risk: The Fund’s investments may have low liquidity which often causes the value of these investments to be less predictable. In extreme cases, the Fund may not be able to realise the investment at the latest market price or at a price considered fair.

Long/Short Fund: Investors in this Fund should understand that the Fund is not guaranteed to produce a positive return and as an absolute return product, performance may not move in line with general market trends or fully benefit from a positive market environment. The Manager employs a risk management process to oversee and manage derivative exposure within the Fund.

Derivative Risk & Complex Derivative Techniques: The Fund utilises derivatives as part of its investment strategy. Compared to a fund which only invests in traditional instruments such as stocks and bonds, derivatives are potentially subject to a higher level of risk and volatility. The strategies utilised by the Fund involve the use of derivatives to facilitate certain investment management techniques including the establishment of both ‘long’ and ‘synthetic short’ positions and creation of market leverage for the purposes of increasing the economic exposure of a Fund beyond the value of its net assets. The use of derivatives in this manner may have the effect of increasing the overall risk profile of the Fund.

MKTGH0519E-853669