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Wednesday, June 18, 2014

BGF Global Equity Income Fund

Why this Fund ?


1. Strong Track RecordHistorically, high dividend yields and high dividend growth stocks have consistently outperformed the broad market globally. The Fund has outperformed its peer group average across the following periods:  3 Years:  9.6% (7.8% if FEL is applied) ; Since Launch:  8.8% (7.1% if FEL is applied).1

2. Portfolio of High-Quality Companies

Through diversification and disciplined stock selection for high-quality companies which are operationally and financially resilient, the Fund aims to deliver less potential volatility compared to traditional global equities.
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3. Better Downside Protection
Owing to the investment team's focus on high-quality companies, the Fund was able to deliver lower drawdowns relative to the market which also translates to a quicker recovery.

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The Benefits of Equity Income Investing

1. Yields from Global Equities are Outstripping Traditional Fixed Income
In a low yield environment, it is increasingly difficult to generate income. Across major markets, equity dividend yields have risen above the government bond yields.
Yields from Global Equities are Outstripping Traditional Fixed Income

2. Attractive Equity Valuations
While an above-average yield is an important component of total return, dividend growth – a company’s ability to consistently raise its dividends – is more powerful over the long term, as the compounding growth nature sends positive signals to the investment community that supports the stock’s price. For the first time in almost 20 years, companies that can grow dividends are trading at a discount to companies with high dividend yields.
Attractive Equity Valuations

3. Dividend Payers have Weathered Diverse Markets
Notwithstanding market volatility, dividend-paying companies have outperformed their non-dividend paying counterparts in delivering better returns to investors.
Growth through Dividends Blue bar

Distributors

Distributors

[1] Source: Morningstar, as of 31January 2014. Returns above 1 year are annualised. Peer group is Global Equity Income. Fund performance is reported in USD on a NAV pricing basis with income reinvested and where indicated, includes the effect of 5% front end load (FEL) which an investor may or may not pay. Past performance is not a guide to future performance.
*The Fund aims to provide a stable monthly income. The yields shown above are not a projection or forecast of the future or likely performance of the Fund, and may be higher or lower than the actual dividend yield received by investors. Dividend payments are made on a monthly basis and are subject to periodic review. Dividend payment is not guaranteed and might be changed at the discretion of the Directors. In the event of income and realised gains being less than yield shown above, dividends may be made from capital, subject to Directors’ approval. Investors should be aware that the distributions may exceed the income and realised gains of the Fund at times and lead to a reduction of the amount originally invested, depending on the date of the initial investment.
In Singapore, this material is issued by BlackRock (Singapore) Limited (company registration number: 200010143N).

BGF Global Equity Income Fund is the abbreviated name of BlackRock Global Funds - Global Equity Income Fund.

Past performance is not a guide to future performance and should not be the sole factor of consideration when selecting a product. All financial investments involve an element of risk. Therefore, the value of your investment and the income from it will vary and your initial investment amount cannot be guaranteed. Investors may not get back the amount they invest. Changes in the rates of exchange between currencies may cause the value of investments to go up and down. 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. Performance of the Fund is calculated on NAV to NAV price basis with income reinvested. Also, where indicated, performance of the Fund is shown including the effect of assumed 5% front end load (FEL), which an investor might or might not pay. Accordingly, these returns may not represent actual returns to an investor. Returns denominated in a currency other than the base currency of the Fund may increase or decrease as a result of foreign exchange currency fluctuations. The Fund invests a large portion of assets which are denominated in other currencies; hence changes in the relevant exchange rate will affect the value of the investment. Investors in this Fund should understand that capital growth is not a priority and values may fluctuate and the level of income may vary from time to time and is not guaranteed. 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 above warnings are explained in greater detail in the fund specific risks in the current BGF Singapore Prospectus and you should read them before investing. Investors may wish to seek advice from a financial adviser before purchasing units of the Fund. In the event that he chooses not to seek advice from a financial adviser, he should consider carefully whether the Fund in question is suitable for him.
This document is for informational purposes only and does not constitute an offer or invitation to anyone to invest in any BlackRock Group funds and has not been prepared in connection with any such offer. Subject to the express requirements of any client specific investment management agreement or relating to the management of a fund, we will not provide notice of any changes to our personnel, structure, policies, process, objectives or, without limitation, any other matter contained in this document. BlackRock Global Funds (BGF) is an open-ended investment company established in Luxembourg which is available for sale in certain jurisdictions only. BGF is not available for sale in the U.S. or to U.S. persons. Product information concerning BGF should not be published in the U.S. BGF has appointed BlackRock (Singapore) Limited as its Singapore representative and agent for service of process. Subscriptions in BGF are valid only if made on the basis of the current Prospectus and the most recent financial reports which are available on our website blackrock.com.sg. Any research in this document has been procured and may have been acted on by BlackRock for its own purpose. The results of such research are for illustrative purpose only. The views expressed do not constitute investment or any other advice and are subject to change. They do not necessarily reflect the views of any company in the BlackRock Group or any part thereof and no assurances are made as to their accuracy. Unless otherwise specified, all information is current as at the date on the page. No part of this material may be reproduced, stored in retrieval system or transmitted in any form or by any means, electronic, mechanical, recording or otherwise, without the prior written consent of BlackRock.

Investment Objective

BlackRock Global Equity Income Fund seeks an above average income from its equity investments without sacrificing long term capital growth. The Fund invests globally at least 70% of its total assets in the equity securities of companies domiciled in, or exercising the predominant part of their economic activity in, developed markets. This Fund distributes income gross of expenses. Currency exposure is flexibly managed.
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A6/A8 Share Class Explained

The A6 share class aims to provide investors with a stable monthly dividend per share, by smoothing income generated by a fund over time.
The A8 share class aims to provide investors with a monthly dividend per share whilst factoring in the interest rate differential which may arise from currency hedging.
Estimated initial dividend yield:
Estimated initial dividend yield
Please see the A6/A8 flyer for further details.

    
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