A sub fund of BlackRock Fund Manager Funds (BFM)

BlackRock UK Special Situations 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. 

 


+4% p.a.

The historical outperformance of small and mid-cap companies over large caps

60-80

Holdings within the fund.

+70%

Of revenues of the UK market are generated overseas.

+4% p.a.

The historical outperformance of small and mid-cap companies over large caps

60-80

Holdings within the fund.

+70%

Of revenues of the UK market are generated overseas.

Source: BlackRock, as at 30 April 2019

Fund Ratings

Overall Morningstar
Rating


Overall Morningstar Rating
Morningstar
Analyst Rating


Morningstar Silver Rating
Rayner Spencer
Mills Rated Fund


 RSMR rated fund

All ratings and awards are as at 31 December 2018.

Key Features

Alpha opportunity in an outperforming asset class


Alpha opportunity in an outperforming
asset class

The BlackRock UK Special Situations Fund is an all-cap fund with a small- and mid-cap bias – therefore at all times we will hold a minimum 50% in small- & mid-caps.

Investing in Smaller Companies offers exposure to an outperforming asset class, which has historically outperformed large caps by an impressive +4% per annum. There are many powerful qualitative reasons for this: Smaller companies are capable of faster organic growth, higher operational leverage, entrepreneurial management teams and the ability to change more quickly than large caps. Small caps are the source of new emerging industries such as new technology and services.

Under researched universe of companies


Under researched universe of companies

Smaller companies are an inefficient and under-researched area of the market which provide an attractive environment for active managers.

Our Philosophy is centred around the belief that when managed properly, smaller companies are able to sustain superior growth rates over long periods of time. Our bias towards high quality, cash-generative companies offers the potential for attractive returns from within an over-looked asset class which has historically been home to companies that have been able to manufacture their own earnings growth regardless of the wider market environment.

Opportunity in larger companies


Opportunity in larger companies

40% is currently held in FTSE 100 companies. Whilst we believe in the long-term outperformance of small & mid-cap companies, the FTSE 100 is also home to many high quality businesses which have the ability to deliver strong growth over the long-term. The Fund has the flexibility to not only invest in the FTSE 100 but also ‘run the winners’ by continuing to hold the shares of companies that were small companies at the time of investment, but have grown into much larger FTSE 100 companies, rather than being forced sellers of these business. This we feel is a significant advantage for the Fund and the ability to flex the market cap exposure provides additional tools beyond that of a pure small cap fund.

Highly experienced team


Highly experienced team

Roland Arnold and Luke Chappell co-manage the BlackRock UK Special Situations Fund further backed by a large, dedicated UK equity team of 14 fund managers and analysts. Combined research and fund management enables rapid identification of investment opportunities.

Long-term record of outperforming UK small cap equities


Long-term record of outperforming UK small cap equities

Proven strategy with a long-term track record, delivering 330.0% since inception of the strategy, outperforming both large and small caps with the FTSE All-Share returning 205.3% and the Numis Smaller Companies +AIM ex ITs returning 223.3% over this period.

BlackRock UK Special Situations Fund Discrete Performance versus IA UK All Companies Sector Average

UK Special Situations Chart

RISK: Past performance is not a guide to current or future performance. The value of investments and the income from them can fall as well as rise and is not guaranteed.

SOURCE: Basis: A Share class in GBP from 31-May-2004 to close of business 30-April-2010, D share class in GBP from close of business 30-April-2010 to date specified. Share class performance is calculated on a bid to bid price basis, with income reinvested, net of fees. As at 31 December 2018. Smaller company investments are often associated with greater investment risk than those of larger company shares. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Current Investment Process since 31 May 2004. Roland Arnold named co-manager 1 August 2012. Luke Chappell named co-manager 22 July 2015.

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. 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

Smaller company investments: Smaller company investments are often associated with greater investment risk than those of larger company shares.

Concentration Risk: Investment risk is concentrated in specific sectors, countries, currencies or companies. This means the Fund is more sensitive to any localised economic, market, political or regulatory events.

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