FOR PROFESSIONAL CLIENTS/QUALIFIED INVESTORS/QUALIFIED CLIENTS ONLY
The new
playbook in
action
2023 EMEA Outlook Implementation Guide
THIS MATERIAL IS NOT INTENDED TO BE RELIED UPON AS A FORECAST, RESEARCH
OR INVESTMENT ADVICE, AND IS NOT A RECOMMENDATION, OFFER OR SOLICITATION
TO BUY OR SELL ANY FINANCIAL INSTRUMENT OR PRODUCT OR TO ADOPT ANY
INVESTMENT STRATEGY.
EIIiH1122E/S-2607244-1/35
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The team
ETF and Index
Investment Strategy
Wealth Product
Group
Brett Pybus
Keith Saldanha
Karim Chedid
Rees Hales
Laura Cooper
Megan Bermudez
Natasha Sarkaria
Alex Merkulov
Qassim Saeed
Kai Aschick
Nicole Chong
Valentina Besozzi
Jonathan Parker (editor)
Faerlie Wilson (editor)
Contributors
iShares Product Strategists
BlackRock Portfolio Analysis and
Solutions (BPAS)
Wealth Product Group Asset Class
Support
Fundamental & Systematic Product
Strategists
Cash Product Strategists
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Introduction
A new playbook
for a new regime.
The new regime of greater macro and market volatility in a world shaped by supply is playing out. Central banks are
poised to overtighten policy and engineer recessions to tame inflation. Old investment playbooks – conditioned on the
Great Moderation of largely stable activity and inflation – won't apply, in our view. We think investors should be prepared
to make more frequent changes to tactical and strategic portfolios. Our stance heading into 2023 is broadly risk-off,
with a preference for income over equities and long-term bonds – yet we have clear signposts to add to risk as the
regime unfolds.
Over the following pages, we explore the key investment themes laid out in the BlackRock Investment Institute’s Global
Outlook, A new investment playbook, and put the new playbook into action with implementation ideas across index,
alpha-seeking, alternative, and money market funds. As the new regime continues to take hold, we’re pricing the damage
to understand where the economy is relative to what’s in the price, rethinking bonds and their role in portfolios, and living
with inflation through a new playbook for navigating the volatility and uncertainty ahead.
1
2
3
Pricing the damage
Rethinking bonds
Living with inflation
Central bank overtightening makes a
recession foretold, in our view. What
matters: the pricing of economic
damage and our assessment of
market risk sentiment. We stay
underweight developed market
equities but expect to turn more
positive at some point in 2023.
We see higher yields as a gift to
investors long-starved of income in
bonds – and investors don’t have to
go far up the fixed income risk
spectrum to receive it. Long-dated
bonds face challenges, we believe,
making us prefer short-term bonds
and high-grade credit.
We see central banks pausing rate
hike campaigns once the damage
becomes clearer. Long-term drivers
of the new regime will keep inflation
persistently higher, in our view. We
believe a new portfolio playbook will
be the key to navigating this dynamic.
Any opinions and/or forecasts represent an assessment of the market environment at a specific time and are not
intended to be a forecast of future events or a guarantee of future results. There is no guarantee that any forecasts made
will come to pass.
In this guide, we list exchange-traded products (ETPs), index mutual funds (IMFs), money market funds (MMFs), and
alpha funds that relate to our key themes. Please note that this list is non-exhaustive. Our full product range can be
found on BlackRock.com.
Exchangetraded product
Index mutual
fund
Money market
fund
Alpha fund
This symbol denotes a sustainable/ESG product. The specific methodology will vary by exposure. Visit your local
BlackRock website for more information.
All figures are in US dollars, unless stated otherwise.
Investors should consider their time horizon when selecting investment instruments. Active investment funds may not
be appropriate for short-term investment.
References to specific investments are for illustrative purposes only and are not intended and should not be interpreted
as recommendations to purchase or sell such investments.
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Theme 1
Pricing the damage
Central bank overtightening makes a recession foretold, in our view. What matters: the pricing of
economic damage and our assessment of market risk sentiment. We stay underweight developed
market equities but expect to turn more positive at some point in 2023.
Recession is foretold as central banks race to try to tame
inflation. It’s the opposite of past recessions: loose policy
is not on the way to help support risk assets, in our view.
That’s why the old playbook of simply “buying the dip”
doesn’t apply in this regime of sharper trade-offs and
greater macro volatility. The new playbook calls for a
continuous reassessment of how much of the economic
damage being generated by central banks is in the price.
price, especially equity earnings expectations and
valuations.
We expect them to stop hiking and activity to stabilise in
2023. We find that earnings expectations don’t yet price in
even a mild recession. For that reason, we stay
underweight developed market (DM) equities on a tactical
horizon for now.
Yet we stand ready to turn more positive as valuations get
closer to reflecting the economic damage – as opposed to
risk assets just responding to hopes of a soft landing. It’s
not just about pricing the damage: we could see markets
look through the damage and market risk sentiment
improve in a way that would prod us to dial up our risk
appetite. But we are not there yet.
That damage is building. In the US, it’s most evident in
rate-sensitive sectors. Surging mortgage rates have
cratered sales of new homes. We also see other warning
signs, such as deteriorating CEO confidence, delayed
capital spending plans and consumers depleting savings.
In Europe, the hit to incomes from the energy shock is
amplified by tightening financial conditions.
The bottom line: we remain underweight equities on a
tactical basis. We favour a selective approach in developed
and emerging markets, sectors, and factors, to build
defence with recessions looming. However, we’re also alert
to areas where we may be able to add to risk as the
environment evolves in 2023, including banks and energy.
The ultimate economic damage depends on how far
central banks go to get inflation down.
Our approach to tactical investment views is driven by our
view of market participants’ risk appetite – which is based
on the uncertainty of the macro environment and other
inputs – and by our assessment of what damage is in the
Everything has a price
Valuation of assets vs. historic norms; current valuation (bars) vs. one year ago (dots)
FIXED INCOME
100
Expensive
75
50
Average
25
Mexico
S. Africa
China
Taiwan
S. Korea
India
Brazil
EM
Japan
Germany
UK
Italy
Spain
Canada
Australia
US
France
DM
EM$ debt
US credit
EUR credit
US HY
EUR HY
US TIPS
UK Gilt
US Treasury
Cheap
German Bund
0
Japanese JGB
Percentile ranking
October 2022
October 2021 
EQUITIES
Source: BlackRock Investment Institute and Refinitiv Datastream, as of 31 October 2022. Notes: The percentile bars
show valuations of assets as of 31 Oct 2022 vs. their historical ranges. For example, US equities are currently in the 79th
percentile. This means US equities trade at a valuation equal to or great than 79% of their history. The dots show where
valuations were a year ago. Government bonds are 10Y benchmark issues. Credit series are based on Barclays indices
and the spread over government bonds. TIPS are represented by nominal 10Y US Treasuries minus inflation
expectations. Equity valuations are based on MSCI indices and are an average of percentile ranks vs. available history of
earnings yield, cyclically adjusted earnings yield, trend real earnings, dividend yield, price to book, price to cash flow, and
forward 12m earnings yield. Historical ranges vary from 1969 (developed equities) to 2004 (EM $ debt).
2023 EMEA Outlook Implementation Guide
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Precision equities: identifying
bright spots
Dislocations in the macro environment have created tactical opportunities in
some risk-positive exposures, and we see areas to dial up risk as central
banks adopt a less hawkish posture over 2023. In Europe, sentiment towards
banks has been challenged by widespread growth concerns and market
jitters, off the back of heightened geopolitical risk from the Russia-Ukraine
conflict. As a result, current market pricing does not reflect the sector’s
strong fundamentals and potential for higher profitability from higher net
interest margins, in our view. We expect this disconnect to close, benefiting
European banks – although we acknowledge the sector’s weaker-thanexpected earnings on rising loan provisions.
We continue to like exposure to both traditional and clean energy. Given the
persistence of strong supply and demand mismatches, traditional energy
exposures continue to provide opportunities. We favour the sector for robust
earnings, low valuations and its potential role as an inflation hedge. At the
same time, energy supply crunches in 2022 have resulted in an acceleration
of policy support – see the recent US Inflation Reduction Act – providing
additional tailwinds and investment in the clean energy space.
Precision equities: positioning for
defence
Building resilience through equities in a higher volatility regime requires
selectivity, in our view. We prefer granular exposure to the healthcare sector:
sticky demand and high pricing power could provide earnings resilience for
healthcare stocks amid slowing economic growth. The sector is also wellpositioned on a strategic horizon: the over-65 segment of the population is
growing faster than any other age group globally, providing a structural
source of demand. The backlog for elective medical procedures postpandemic should also support structural demand for the medical devices
subsector. Healthcare has been the second-most popular sector allocation
in ETP flows YTD, behind tech: the $20.3B added to global healthcare ETPs
so far in 2022 has already surpassed 2021’s total of $17.5B.1
As the new regime plays out, we see a wide range of possible macro
scenarios open for H1’23. To help manage the risk of recession, we prefer
exposure to quality assets; this has been reflected in investor sentiment, with
quality the most popular style factor allocation YTD in global ETP flows, with
$12.4B added.2 In a scenario where high volatility persists, we favour the
momentum factor due to its attractive sector composition, balancing
defensive and value sectors. Momentum looks particularly well-positioned at
the close of 2022, with the latest index rebalance from MSCI boosting its tilt
towards both healthcare and energy.
Positioning for risk-on
EXV1
iShares STOXX
Europe 600 Banks
UCITS ETF (DE)
iShares MSCI World
WENE Energy Sector ESG
UCITS
INRG
iShares Global Clean
Energy UCITS ETF
BGF World Financials
Fund
BGF World Energy
Fund
BGF Sustainable
Energy Fund
Positioning for defence
iShares MSCI World
WHCS Health Care Sector
ESG UCITS ETF
iShares Edge MSCI
IWMO World Momentum
Factor UCITS ETF
BGF World
Healthscience
Fund
BlackRock Global
Unconstrained
Equity Fund
Unconstrained equity strategies are designed to look through market
volatility and deliver alpha across economic cycles. Their bottom-up
investment approach enables the construction of high-conviction portfolios,
holding investment ideas over the long term and limiting attention to macro
noise. This may also provide investors with relevant exposure to enhance
portfolio resilience, with equity markets in motion to price in the looming
recession and navigate persistent, heightened volatility.
1, 2 Source: BlackRock and Markit, as of 24 November 2022. Past flows into global ETPs are not a guide to current or
future flows and should not be the sole factor of consideration when selecting a product.
This symbol denotes a sustainable/ESG product. The specific methodology will vary by exposure. Visit your local
BlackRock website for more information.
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Looking beyond the market cap
With looming recessions not yet priced in, we take a cautious view on DM
equities, and continue to see selective opportunities in the asset class. Over
the coming months, we expect recessions in the US, UK, and eurozone, a
slowdown in earnings, and continued hawkishness from DM central banks –
even if the pace of tightening is set to slow. Valuations for DM equities have
fallen just over 20% YTD on a 12m forward P/E basis,3 potentially creating
an attractive entry point from a strategic view – although further downside
could come through in the short term as the threat of earnings downgrades
grows.
While we acknowledge that Europe and other DMs appear under-owned,
leaving room for tactical rallies, our relative preference for the US persists
within our DM equity underweight. We favour positioning in US equities
away from concentrated leadership in tech in market cap indices, and prefer
a non-market cap approach to gain access to the US's better growth outlook
and stronger consumer.
In this environment, we prefer exposure to US equities, as the region’s
quality tilt could provide some ballast in periods of earnings downturns vs.
the broad market. US equities have remained at the core of investors’ equity
allocations: we’ve seen $330.2B added to ETPs globally YTD, capturing 59%
of total equity ETP flows, despite heightened volatility in 2022.4 US large cap
indices tend to have a higher tilt towards the tech sector – five ‘big tech’
names alone account for 22% of the S&P 500 – which has seen earnings
challenged by a stronger USD in 2022, due to their high international
revenue exposure.5 To help neutralise this tilt, we prefer exposure to equalweighted indices, giving a higher weighting to value-oriented sectors, which
may benefit from the new regime of higher-for-longer real rates. The US
market is highly complex: for investors who prefer to delegate these
decisions to skilled active managers, we like alpha-seeking funds that tilt upin-quality, or that have a dynamic, data-driven approach to spot emerging
pockets of opportunity.
DM equities
EWSP
iShares S&P 500
Equal Weight
UCITS ETF
BGF US Flexible
Equity Fund
BlackRock Sustainable
Advantage US Equity
Fund
BGF China Bond
Fund
Visit BlackRock.com to browse
additional DM products.
Visit BlackRock.com to browse
additional sector products.
3, 5 Source: Bloomberg, as of 16 November 2022. Note: DM equities represented by the MSCI World Index.
4 Source: BlackRock and Markit, as of 24 November 2022. Past flows into global ETPs are not a guide to current or
future flows and should not be the sole factor of consideration when selecting a product.
This symbol denotes a sustainable/ESG product. The specific methodology will vary by exposure. Visit your local
BlackRock website for more information.
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Selectivity in EM equities
Emerging markets are facing headwinds from slowing global growth and a
much stronger US dollar, keeping us neutral on the asset class, as steady
emerging market (EM) equity inflows have largely gone under the radar in
2022.6 Within EM, we prefer exposure to commodity exporters and lean into
greater selectivity. Separating single country exposures may be a useful way
to diversify sources of return. This approach can be used to manage
exposure to Chinese equities, where we are neutral, amid potential
challenges from slowing growth and wider geopolitical risks. Investors may
consider building out a China and an EM ex-China view, to manage risk and
apply their desired weight to Chinese assets. EM ex-China exposure also
provides access to EM commodity exporters, which may be well-positioned
to benefit from rising commodity prices and structural demand.
Our preference for commodity exporters in EM also underpins our
preference for LatAm equities, with Brazil a particular standout in 2022. This
has led to continued buying: global flows into Brazilian equity ETPs have
reached $0.9B YTD, adding to the $0.8B of inflows added in 2021.7 The
market’s commodity exporter bias could continue to provide a tailwind:
Brazil has a diverse export base and is a leading exporter of soybeans and
sugar, which could help to solve the challenge of global food security. Brazil
is also a significant exporter of iron ore and petroleum; energy commodities
offer exposure to a potential pickup in demand over the northern hemisphere
winter months.
EM equities
iShares MSCI EM
EXCH ex-China UCITS
ETF
4BRZ
iShares MSCI Brazil
UCITS ETF (DE)
BGF Latin
American Fund
Visit BlackRock.com for a full
range of broad and single
exposure EM products.
Visit BlackRock.com to browse
additional sector products.
6, 7 Source: BlackRock and Markit, as of 24 November 2022. Past flows into global ETPs are not a guide to current or
future flows and should not be the sole factor of consideration when selecting a product.
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Seeking signposts in earnings
Earnings may offer key insights as we look to gauge the damage to the
broader economy – and identify sectors that could be poised to turn more
positive. Over 2022, we’ve seen higher rates pose headwinds to both
consumer demand and growth-heavy parts of the stock market, inflation
contribute to margin pressure, and layoffs emerge as a theme in ‘new
economy’ sectors such as tech. We believe that high-quality companies with
robust profitability and pricing power are likely to weather the economic
uncertainty ahead better than their lower-quality peers. We also see
opportunities in select value-oriented sectors that could benefit from a
higher rate environment, such as banks.
In Q3, low expectations for earnings led to above-60% beat rates overall for
both S&P 500 and Stoxx 600 companies.8 At the sector level, energy,
industrials and consumer discretionary registered strong growth in the US; a
similar sector mix, alongside healthcare and utilities, has also shown robust
Q3 growth in Europe. However, we expect a more challenging backdrop
ahead, as high inflation, weak consumer demand and macro uncertainty
persist. Headwinds to earnings have been evident in continued margin
pressure, with Q3 sales growth outpacing the EPS growth rate. Energy has
also contributed to the bulk of US earnings growth: ex-energy, US equities
have lagged, with EPS growth tracking at -5% YoY, compared to 7% for their
European peers.9 The weaker outlook is being reflected in negative revisions
to earnings growth for Q4 – estimates for S&P 500 Q4 earnings were down
5.4% MoM as of mid-November, while sales estimates were down by 2.3%.10
Rolling 90-day layoff mentions by sector
 Communications Svcs
 Consumer Staples
 Healthcare
 Info tech
 Financials
15
mentioned
• Number of companies
20
10
5
0
Dec 21
Jan 22 Feb 22
Mar 22
Apr 22
May 22
Jun 22
Jul 22
Aug 22
Sep 22
Oct 22
Source: BlackRock as of 16 November 2022. Data source: Bloomberg News.
based on natural language processing of published articles.
Over the Q4 earnings season and beyond, we expect layoffs to become be a
more dominant theme for some sectors. Recent headlines have pointed to
tech companies cutting costs through head count, leading to worries that
the tech sector could be the ‘canary in the coalmine’ for the wider economy.
Looking through the alternative data lens of our Systematic Active Equity
platform confirms that view – although we believe the popular media storm
around tech layoffs may be exaggerating the problem. The ‘big data’
suggests that the gloomy employment picture within tech may now have
bottomed, with a high level of layoffs having already taken place; layoff
chatter has already been receding. In contrast, we see no signs of peaking in
financials, healthcare and consumer staples, which are currently showing
the most negative employment trends.11 We believe that aggregate layoff
chatter is still relatively well contained, if a deep recession is expected.
8, 9 Source: J.P. Morgan as of 11 November 2022.
10 Source: Refinitiv Datastream, as of 14 November 2022.
11 Source: BlackRock, as of 16 September 2022.
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Theme 2
Rethinking bonds
We see higher yields as a gift to investors long-starved of income in bonds – and investors don’t have
to go far up the fixed income risk spectrum to receive it. Long-dated bonds face challenges, we
believe, making us prefer short-term bonds and high-grade credit.
Fixed income finally offers “income” after yields surged
globally. This has boosted the allure of bonds after
investors were starved for yield for years. We take a
granular investment approach to capitalise on this, rather
than taking broad, aggregate exposures.
The case for investment-grade credit has brightened, in
our view, and we raise our overweight tactically and
strategically. We think it can hold up in a recession, with
companies having fortified their balance sheets by
refinancing debt at lower yields. Agency mortgage-backed
securities – a new tactical overweight – can also play a
diversified income role. Short-term government debt also
looks attractive at current yields, and we now break out
this category into a separate tactical view.
In the old playbook, long-term government bonds would
be part of the package as they historically have shielded
portfolios from recession. Not this time, we think.
The negative correlation between stock and bond returns
has already flipped, meaning they can both go down at the
same time. Why? Central banks are unlikely to come to the
rescue with rapid rate cuts in recessions they engineered
to bring down inflation to policy targets. If anything, policy
rates may stay higher for longer than the market is
expecting.
Investors also will increasingly ask for more compensation
to hold long-term government bonds – or term premium –
amid high debt levels, rising supply and higher inflation.
Central banks are shrinking their bond holdings and
Japan may stop purchases, while governments are still
running deficits. That means the private sector needs to
absorb more bonds. And so-called bond vigilantes are
back, as seen when market forces sparked a yield surge to
punish profligate UK policies.
As a result, we remain underweight long-term government
bonds in tactical and strategic portfolios.
The bottom line: the new portfolio playbook requires a
different approach to government bonds. We look to
bonds for income, and prefer up-in-quality exposures,
particularly investment grade credit. Within our broad
underweight to government bonds, we have a high
conviction, maximum overweight to inflation-linked bonds
in strategic portfolios and maintain a tactical overweight
no matter how the new regime plays out.
Sentiment towards credit is on the rise
Cumulative inflows into global high yield (HY) and investment grade (IG) credit ETPs, 2022 YTD
$50B
 HY credit
Global ETP flows
$40B
 IG credit
$30B
$20B
$10B
$0B
-$10B
-$20B
-$30B
Jan
Mar
May
Jul
Sep
Nov
Source: BlackRock and Markit, as of 24 November 2022. Past flows into global ETPs are not a guide to current or
future flows and should not be the sole factor of consideration when selecting a product.
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Investment grade credit
We continue to favour credit on a tactical and strategic basis. We have a
high-conviction overweight to IG exposures as we move up in quality, with
drivers of rate volatility taking a backseat to drivers of the growth slowdown.
Corporate balance sheets fortified by refinancing debt issued at lower yields
put IG credit in a better place vs. equities ahead of a recession, in our view.
We see valuations as attractive, and particularly like credit as a source of
income, given favourable yields. We see the credit risk component becoming
increasingly important for spread assets, as duration risk moderates. We like
credit risk for carry and favour taking duration risk in IG exposures. Higher
yields off the back of rising interest rates have supported sentiment in 2022:
while flows into IG credit have been volatile, they stand at $36.9B, overtaking
the $27.2B added in 2021.12 Within IG, we see the most opportunity in BBBrated exposures, which are currently trading wider than HY. For EUR-based
investors, we prefer EUR-denominated IG, due to the hedging costs
associated with USD exposures.
IG credit
SUOE
iShares € Corp Bond
ESG UCITS ETF
SUSU
iShares $ Corp
Bond 0-3yr ESG
UCITS ETF
BSF Euro Corporate
Bond Fund
BSF Sustainable
Fixed Income Credit
Strategies Fund
High yield credit
While we prefer IG exposures amid a worsening macro backdrop, we like
higher-quality HY credit for income, as default rates tend to be lower. Given
our base case for a shallow recession in the US, we also see carry potential.
We see room for momentum to persist in the euro area, given a less hawkish
European Central Bank (ECB), and pricing in of a moderate recession.
Default rates look manageable, as the overall quality of the credit market is
stronger than in previous downturns, in our view. A lower-duration profile in
EUR HY, combined with a higher tilt to banks (vs. USD HY and IG credit), may
help investors position for a higher rate environment. In contrast to IG
inflows this year, sentiment towards HY remains muted: HY outflows
totalling -$4.7B have partially unwound the $8.9B added in 2021 – even with
October 2022 marking the best month for the exposure since April 2020.13
HY credit
iShares $ High Yield
DHYD Corp Bond ESG
UCITS ETF
BGF US Dollar High
Yield Bond Fund
With markets entering a new regime in 2022,
adoption of fixed income ETFs has continued
to surge.
Income is back, with the Bloomberg Global Aggregate Bond Index
yielding 3.6%,14 spurring investors to re-evaluate fixed income
allocations. Many are turning to bond ETFs for access, liquidity and
managing risk in their portfolios, amid higher market volatility and less
liquid bond markets - and we think this is just the beginning.
Jane Sloan
EMEA Head of iShares and Index Investments
12, 13 Source: BlackRock and Markit, as of 24 November 2022. Past flows into global ETPs are not a guide to current
or future flows and should not be the sole factor of consideration when selecting a product.
14 Source: Bloomberg, as of 29 November 2022.
This symbol denotes a sustainable/ESG product. The specific methodology will vary by exposure. Visit your local
BlackRock website for more information.
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Sovereigns
Investment rules of thumb that prevailed during the Great Moderation were
based on central banks responding with supportive policy. That’s no longer
the case, in our view – impacting the role of long-term government bonds in
particular – so we stick to our broad underweight to sovereigns. We prefer
shorter-dated government bonds for income: the jump in yields reduces the
need to take risk by seeking yield further out the curve. Nevertheless, 2022 is
on track to be a record year for rates flows, with $165.3B added YTD – totally
70% of all fixed income ETP flows globally.15
We believe that policymakers will ultimately allow inflation to settle above
pre-Covid levels. To manage persistent price pressures, we remain
overweight inflation-linked bonds. Despite the rotation out of linkers this
year in ETP flows, breakeven rates appear to be underpricing the level of
persistent inflation we see on the cards in the medium term. This isn’t just a
long term story: the current dynamic leads us to an overweight to inflationlinked bonds on a tactical horizon, too – not the typical approach when
heading into a recession, and an example of our new playbook in action.
Inflation-linked bonds
TIP5
iShares $ TIPS 0-5
UCITS ETF
Visit BlackRock.com to
browse additional factor &
sector products.
EMD
iShares J.P.
EMSA Morgan ESG $ EM
Bond UCITS ETF
BSF Emerging
Markets Short
Duration Bond Fund
Emerging market economies – on the whole – are further along in their
hiking cycle vs. their DM counterparts, and some have already begun to
pause – creating a very different macro backdrop. Yet we have moderated
our overweight to local currency in favour of broad neutrality across USDdenominated and local debt. EMD continues to offer attractive income, and
we look to a sustainable overlay for a natural boost to quality – but we prefer
the risk/reward profile for DM corporate debt in the current environment.
Unconstrained fixed income
Unconstrained funds can be designed to maintain the look and feel of a core
fixed income allocation, while providing exposure to a more diversified set of
return drivers. Given their ability to have no or even a negative overall
duration exposure, unconstrained fixed income portfolios can help insulate
investors from interest rate volatility.
Unconstrained
BGF Sustainable
Fixed Income Global
Opportunities Fund
BSF Sustainable
Fixed Income
Strategies Fund
15 Source: BlackRock and Markit, as of 24 November 2022. Past flows into global ETPs are not a guide to current or
future flows and should not be the sole factor of consideration when selecting a product.
This symbol denotes a sustainable/ESG product. The specific methodology will vary by exposure. Visit your local
BlackRock website for more information.
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Theme 3
Living with inflation
We see central banks pausing rate hike campaigns once the damage becomes clearer. Long-term
drivers of the new regime will keep inflation persistently higher, in our view. We believe a new
portfolio playbook will be key to navigating this dynamic.
High inflation has sparked cost-of-living crises, putting
pressure on central banks to tame inflation – whatever it
takes. Yet there has been little debate about the damage
to growth and jobs.
We think the ‘politics of inflation’ narrative is on the cusp
of changing. The cycle of outsized rate hikes will stop
without inflation being back on track to return fully to 2%
targets, in our view. As the damage becomes clear, the
‘politics of recession’ will take over. Plus, central banks
may be forced to stop tightening to prevent financial
cracks from becoming floodgates, as seen in the UK when
investors took fright of fiscal stimulus plans. Result? Even
with a recession coming, we think we are going to be living
with inflation.
We do see inflation cooling as spending patterns
normalise and energy prices relent – but we see it
persisting above policy targets in coming years. More
volatile and persistent inflation is not yet priced in by
markets, we think.
We stay overweight inflation-linked bonds and like real
assets. The old playbook principle that recession drives
below-target inflation and looser monetary policy is gone.
Beyond Covid-related supply disruptions, we see three
long-term constraints keeping the new regime in place
and inflation above pre-pandemic levels: ageing
populations, geopolitical fragmentation and the transition
to a lower-carbon world.
Our strategic views have reflected the new regime, with an
overweight to inflation-protected bonds for a few years
now. Market expectations and economist forecasts have
only recently started to appreciate that inflation will be
more persistent. We think the old playbook means
markets underappreciate inflation.
All this means what worked for investors in past
recessions won’t work now, in our view: the portfolio
implications are big, and navigating markets in 2023 will
require more frequent portfolio changes.
The bottom line: we believe the new regime requires a
new playbook. Persistent inflation and the declining
salience of government bonds as ballast lead us to look at
alternative sources of portfolio diversification – such as
real assets and commodities – to manage exposure to
price pressures and volatility.
The new regime of higher inflation and volatility has yet to be reflected in portfolios
Average asset allocation mix in EMEA client portfolios, 2021 and H1 2022
Percentage of portfolio
70%
2022
2021
60%
50%
40%
30%
20%
10%
0%
Equity
Fixed income
Private markets
& hedge funds
Commodities
Multi-asset
Cash & money
market
Source: BlackRock Portfolio Consulting EMEA and BlackRock Aladdin. Notes: data as of 31 December 2021 for
portfolios collected between January 2021 and December 2021. Data as of 30 June 2022 for portfolios collected
between January 2022 and June 2022. Currency: EUR. For Illustrative purposes only.
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More dynamic portfolio choices
Navigating markets in 2023 will require more frequent portfolio changes. We
see two signposts to help determine portfolio outcomes: 1) our assessment
of market risk sentiment, and 2) our view of the economic damage reflected
in market pricing. Looking to strategic portfolios, the Great Moderation
allowed for relatively stable allocations. That won’t work in the new regime:
we think they will need to be more nimble.
We don’t see a return to conditions that will sustain a joint bull market in
equities and bonds of the kind we experienced in the prior decade. The asset
mix has always been important for portfolio outcomes, yet our analysis
posits that getting the mix wrong could be as much as four times as costly
as versus the Great Moderation. Zero or even positive correlation between
the returns of stocks and bonds means it will take higher portfolio volatility
to achieve similar levels of return as before.
Analysis by our Portfolio Consulting team shows that allocation across asset
classes in EMEA portfolios has yet to reflect the significant changes we think
will be necessary to build resilience in the new regime. While EMEA investors
are starting to evolve their asset allocation to reflect new market dynamics,
we expect to see increasingly significant shifts going forward.
Average portfolio risk jumps
Total risk
2022
10.0%
2021
9.5%
 Equity
 Rates
 Spreads
 Inflation
 Alternative
 FX
Source: BlackRock Portfolio Consulting EMEA and BlackRock Aladdin. Notes: as of 31 December 2021 for portfolios
collected between January 2021 and December 2021. Data as of 30 June 2022 for portfolios collected between January
2022 and June 2022. Currency: EUR. For Illustrative purposes only.
From an asset allocation perspective, we’ve seen a marginal pickup in the
size of fixed income allocations and a more pronounced rise in cash over
2022, at the expense of equity and multi-asset allocations in EMEA
portfolios. How this cash gets allocated and how strategic asset allocation
continues to evolve will be key for portfolio outcomes, in our view. Despite
these risk-off allocation moves, we estimate a 0.5% jump in average
expected risk in portfolios from 2021 to 2022. Interestingly, the jump comes
from both the equity and fixed income allocations in portfolios, pointing to
the unprecedented volatility and correlations we’ve seen this year in public
markets. It also nods to the growing challenge of effective portfolio
diversification and the importance of targeting risk as well as asset
allocations as part of a new, dynamic portfolio construction approach.
Looking at product implementation choices in portfolios, we’ve seen clear
progress towards a blended index and alpha-seeking approach in the region:
as complexities in the market unfolded, we saw close to 50% of our 2022
portfolios allocating above a quarter to index strategies (vs. 40% of
portfolios in 2021).16 In addition, the average portfolio in 2022 held more
index and alpha-seeking products with a jump in the number of vehicles
used across asset classes. This again may reflect the more complex
environment portfolio builders need to navigate, as well as the more frequent
adjustments required by the new regime.
16 Source: BlackRock analysis of EMEA client portfolios, as of 28 October 2022.
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Diversifying sources of return
As we build a new portfolio playbook to live with inflation, we focus on
diversifying sources of return across listed and private assets. We favour
multi-asset inflation exposure in an environment of persistent inflation.
Infrastructure – including listed infrastructure – tracks US CPI over time, and
can provide an element of diversification in portfolios. The sector’s
diversified cash flows may provide an additional buffer against inflation
through stable income. Real assets also tend to have low correlation to other
asset classes, which can be useful in volatile markets.17 Infrastructure may
benefit from increased demand for capital over the long term, powered by
structural trends such as the energy crunch and digitalisation.
Diversifiers
INFR
iShares Global
Infrastructure
UCITS ETF
IPRV
iShares Listed
Private Equity UCITS
ETF
Private Equity
Impact Opportunities
ELTIF
Alternative investment strategies may offer more diversified sources of
return in this environment. We continue to see structural demand accelerate
the adoption of private markets, fuelled by an increasingly benign regulatory
backdrop and improved access routes. While liquid alts sit on the other end
of the liquidity spectrum, providing investors with daily access, they still aim
to offer an idiosyncratic return profile. For example, long-short equity funds
may be positioned to benefit from dislocations seen across several markets
this year, such as Asia-Pacific, Europe and the UK.
Investors often compare the trade-off of income in equities vs. fixed income;
we prefer to incorporate both in portfolios. We like the defensive, lower-beta
nature of dividend-focused investing amid volatility. 2022 is set to be a
record year for dividend-seeking ETPs, with $68.1B of inflows, trumping the
$48.1B added across 2021.18 A quality overlay may help avoid exposure to
companies with high but unsustainable yields, and allocate only to those
that are well-positioned to maintain payments. We also like active
approaches to sourcing dividends, using the seasonality of payments from
global companies to rotate into parts of the market to harvest dividends
when available, and into other alpha opportunities when dividends are less
prevalent. This may drive a higher income outcome while reducing style risk.
BGF Sustainable
Global Infrastructure
Fund
BSF Asia Pacific
Absolute Return
Fund
Income
QDIV
iShares MSCI USA
Quality Dividend ESG
UCITS ETF
BGF Systematic
Global Equity High
Income Fund
Diversification may not fully protect you from market risk.
BGF ESG Global
Conservative
Income Fund
The old playbook of turning to bonds to guard
portfolios during equity drawdowns and buying
the equity dips worked during the Great
Moderation, but it won’t work in the new regime.
Asset and wealth managers are increasingly seeking to deliver towards
clients’ end goals by revising asset allocation decisions more frequently
and looking for strong entry points into different asset classes, including
alternatives, based on sizing up the damage.
Ivan Pascual
Head of EMEA iShares & Wealth Client Business
17 Source: Bloomberg, as of 17 November 2022.
18 Source: BlackRock and Markit, as of 24 November 2022. Past flows into global ETPs are not a guide to current or
future flows and should not be the sole factor of consideration when selecting a product.
This symbol denotes a sustainable/ESG product. The specific methodology will vary by exposure. Visit your local
BlackRock website for more information.
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Commodities & natural resources
Commodities have acted as an inflation hedge and a source of some
diversification against equity and bond volatility YTD, despite a challenging
backdrop, and we see these roles continuing. As growth concerns have
intensified, commodity ETPs have seen seven consecutive months of
outflows from May to November, totalling -$38.3B. This follows stronger
sentiment at the start of the year, with investors adding $30.3B to the
exposure from January to April.19
Nevertheless, we see persistent structural demand due to commodities’ role
in renewable technologies, including metals such as copper, nickel, and
aluminium. The stock of these metals has been declining over the past
decade; as demand continues to expand, we see this mismatch providing
strong support for commodity prices. Supply shocks have also impacted the
agribusiness industry, leading prices to surge since 2020, even accounting
for recent declines. Volatility in weather patterns and growing demand for
food with limited resources are structural issues that will require long-term
investments in agricultural innovation and technology to increase yields.
Commodities
ICOM
iShares Diversified
Commodity Swap
UCITS ETF
SPAG
iShares
Agribusiness
UCITS ETF
BGF Natural
Resources Growth
& Income Fund
BGF Nutrition
Fund
Diversification may not fully protect you from market risk.
Climate & transition investing
We think investors should track the transition to net-zero carbon emissions
like any other driver of investment risks and opportunities, such as monetary
policy. Against a materially different macro backdrop and at a moment of
intense regulatory change, our recent survey of EMEA investors shows that
sustainable investing remains centre stage. This has also played out in ETP
flows, with $63.0B added to sustainable exposures globally in 2022 YTD, led
by EMEA investors ($48.0B).20
Overall, when looking at EMEA investors’ portfolios, it is clear that the net
zero transition will be a multi-year journey. The universe of products
currently available to investors is broadly not aligned to the Paris goals of
limiting the global temperature rise to below 2°C, preferably to 1.5°C,
compared to pre-industrial levels – which poses significant challenges to
building diversified portfolios that align to these objectives. Yet, as the real
economy shifts towards net zero and the availability of investment products
and metrics advances, we have no doubt that progress towards clients’
2030/2050 pledges will accelerate. Changing this status quo will require
investors to build multi-year transition strategies, and to enhance their
reporting and monitoring mechanisms in relation to climate metrics. The
journey to net zero varies by investor: those seeking to reduce exposure to
companies most at risk and prioritise those most likely to benefit from the
transition may consider indexed solutions aligned with Paris Aligned
Benchmark (PAB) or Climate Transition Benchmark (CTB) criteria. In the
alpha space, investors may look to funds with climate objectives explicitly
embedded in their investment approach.
We also favour investments in present-day emitters with credible transition
plans, as this could potentially achieve two portfolio objectives: exposure to
the transition, while helping to weather the shocks along the way. We like
green bonds – assets whose proceeds are exclusively used to finance
projects with environmental benefits, such as renewable energy, energy
efficiency, and public transport – as a key tool to support the transition.
Sustainable
iShares MSCI World
WPAB Paris-Aligned
Climate UCITS ETF
iShares Green Bond
Index Fund
BGF Climate
Action Equity
Fund
BGF Circular
Economy Fund
Multi-asset solutions
BlackRock ESG
MODR Multi-Asset
Moderate Portfolio
UCITS ETF
BGF Climate
Action Multi-Asset
Fund
BGF ESG MultiAsset Fund
19, 20 Source: BlackRock and Markit, as of 24 November 2022. Past flows into global ETPs are not a guide to current
or future flows and should not be the sole factor of consideration when selecting a product.
This symbol denotes a sustainable/ESG product. The specific methodology will vary by exposure. Visit your local
BlackRock website for more information.
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Managing volatility
Heightened macro volatility across both growth and inflation is translating
into greater swings in financial markets, as central banks navigate the tradeoff between tamping down inflation and destroying demand. Central banks’
focus on data has left markets susceptible to more frequent and outsized
swings as investors parse key data releases. For investors seeking a more
nimble approach to navigating volatile markets, lower-volatility equity
strategies, with limited correlation to market movements, may be attractive.
Minimum volatility (min vol) equity strategies have historically provided
ballast during periods of slowing or contracting economic growth. While
equity market volatility has already picked up this year, it remains below the
levels seen in bonds and FX – leaving room for catch up. Investors have
taken note: flows have started to return to min vol ETPs in 2022, with $11.3B
added globally so far this year – and we see room for this to continue, with a
long way to go to recoup the $31.3B of outflows across the previous two
years.21 Allocating to a minimum volatility strategy can help investors to
manage risk and stay invested: min vol strategies have historically had a
beta to the market of 0.7-0.8, indicating lower relative volatility.22 This means
that they are less sensitive to market drawdowns than the broad market,
thereby helping to boost portfolio resilience. However, unlike some defensive
exposures, min vol strategies may also benefit when markets recover, with a
positive upside capture ratio.
Cash & short duration solutions
In a more volatile market regime, many investors may be holding more cash
and seeking ways to diversify. The current interest rate environment means
duration and liquidity management is crucial. We believe that money market
funds (MMFs) could be well-positioned to navigate these market conditions,
offering relative value, liquidity and stability for investors, as part of a new
portfolio playbook.
With EUR MMFs having crossed into positive yields for the first time in over
seven years, managing cash in-house presents a greater challenge. Many
EUR-based clients have been held at zero by their banks since the ECB
deposit rate went negative in 2014. As with other currency exposures, we
expect that banks may not fully pass on each rate hike to clients –
particularly those that may be costly from a Liquidity Coverage Ratio
perspective. MMFs may offer an attractive alternative: they quickly absorb
interest rate rises due to the short-dated nature of investments and high
levels of overnight liquidity. Cash is not a substitute for long-term
allocations, but can be essential to making them work – especially in volatile
markets, when many clients use MMFs for cash collateral pools.
Short duration bonds may also be a viable solution for investors seeking
higher yields and willing to take on slightly higher risk. We’re also seeing
increased interest in fixed-maturity products.
Managing volatility
iShares Edge MSCI
MVEW World Minimum
Volatility ESG UCITS
ETF
BlackRock Tactical
Opportunities
Fund
BlackRock
Systematic MultiStrategy ESG
Screened Fund
Visit BlackRock.com to
browse additional factor &
sector products.
Cash & short duration
BlackRock ICS
Liquidity & Govt
Funds (£, €, $)
BlackRock ICS Liquid
Environmentally
Aware Funds (£, €, $)
BlackRock ICS
Ultra Short Bond
Funds (£, €, $)
iShares €
EUED Ultrashort Bond
ESG UCITS ETF
BGF Euro Short
Duration Bond Fund
Hedged share classes and other
currencies may also be available
at BlackRock.com.
Diversification may not fully protect you from market risk.
21 Source: BlackRock and Markit, as of 24 November 2022. Past flows into global ETPs are not a guide to current or
future flows and should not be the sole factor of consideration when selecting a product.
22 Source: Bloomberg, as of 29 November 2022.
This symbol denotes a sustainable/ESG product. The specific methodology will vary by exposure. Visit your local
BlackRock website for more information.
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FOR PROFESSIONAL CLIENTS/QUALIFIED INVESTORS/QUALIFIED CLIENTS ONLY
BGF World Healthscience Fund
The Fund is actively managed, and the IA has discretion to
select the Fund's investments. In doing, the IA will refer to
the MSCI World Health Care Index (the “Index”) when
constructing the Fund’s portfolio, and also for risk
management purposes to ensure that the active risk (i.e.
degree of deviation from the Index) taken by the Fund
remains appropriate given the Fund’s investment
management purposes to ensure that the active risk (i.e.
degree of deviation from the Index) taken by the Fund
remains appropriate given the Fund’s investment
objective and policy. The IA is not bound by the
components or weighting of the Index when selecting
investments. The IA may also use its discretion to invest in
securities not included in the Index in order to take
advantage of specific investment opportunities. However,
the sector requirements of the investment objective and
policy may have the effect of limiting the extent to which
the portfolio holdings will deviate from the Index. The
Index should be used by investors to compare the
performance of the Fund.
BGF World Financials Fund
The Fund is actively managed, and the IA has discretion to
select the Fund's investments. In doing so, the IA will refer
to the MSCI ACWI Financials Index (the “Index”) when
constructing the Fund’s portfolio, and also for risk
management purposes to ensure that the active risk (i.e.
degree of deviation from the Index) taken by the Fund
remains appropriate given the Fund’s investment
objective and policy. The IA is not bound by the
components or weighting of the Index when selecting
investments. The IA may also use its discretion to invest in
securities not included in the Index in order to take
advantage of specific investment opportunities. However,
the sector requirements of the investment objective and
policy may have the effect of limiting the extent to which
the portfolio holdings will deviate from the Index. The
Index should be used by investors to compare the
performance of the Fund.
BlackRock Global Unconstrained Equity Fund
The Fund is actively managed and the IM has discretion
to select the Fund's investments. The Fund has an
unconstrained investment style (i.e. it will not take a
benchmark index into account when selecting the Fund’s
investments). However, the IM will refer to the MSCI World
Index (the Index) for risk management purposes to ensure
that the active risk (i.e. degree of deviation from the Index)
taken by the Fund remains appropriate given the Fund’s
investment objective and policy (including, in particular,
its unconstrained investment style). The IM is not bound
by the components or weighting of the Index and may use
its discretion to invest in securities not included in the
Index. The Fund’s portfolio holdings are expected to
deviate materially from the Index. The Index should be
used by investors to compare the performance of the Fund.
risk (i.e. degree of deviation from the Index) taken by the
Fund remains appropriate given the Fund’s investment
objective and policy. The IA is not bound by the
components or weighting of the Index when selecting
investments. The IA may also use its discretion to invest in
securities not included in the Index in order to take
advantage of specific investment opportunities. However,
the industry sector requirements of the investment
objective and policy may have the effect of limiting the
extent to which the portfolio holdings will deviate from the
Index. The Index should be used by investors to compare
the performance of the Fund.
BGF Sustainable Energy Fund
The Fund is actively managed. The IA has discretion to
select the Fund’s investments and is not constrained by
any benchmark in this process. The MSCI All Countries
World Index should be used by investors to compare the
performance of the Fund. The weighted average ESG
rating of the Fund will be higher than the ESG rating of
the MSCI ACWI after eliminating at least 20% of the least
well-rated securities from the MSCI ACWI.
BGF US Flexible Equity Fund
The Fund is actively managed, and the IA has discretion to
select the Fund's investments. In doing so, the IA will refer
to the Russell 1000 Index (the “Index”) when
constructing the Fund’s portfolio, and also for risk
management purposes to ensure that the active risk (i.e.
degree of deviation from the Index) taken by the Fund
remains appropriate given the Fund’s investment
objective and policy. The IA is not bound by the
components or weighting of the Index when selecting
investments. The IA may also use its discretion to invest in
securities not included in the Index in order to take
advantage of specific investment opportunities. However,
the geographical scope of the investment objective and
policy may have the effect of limiting the extent to which
the portfolio holdings will deviate from the Index. The
Index should be used by investors to compare the
performance of the Fund.
BlackRock Sustainable Advantage US Equity Fund
The Fund is actively managed and the IM has discretion
to select the Fund's investments. The IM will refer to the
MSCI USA Index (the Index) when constructing the
Fund’s portfolio, and also for risk management purposes
to ensure that the active risk (i.e. degree of deviation from
the Index) taken by the Fund remains appropriate
given the Fund’s investment objective and policy. The IM
is not bound by the components or weighting of the Index
and may use its discretion to invest in securities
not included in the Index. The geographical scope of the
investment objective and policy may have the effect of
limiting the extent to which the portfolio holdings will
deviate from the Index. The Index should be used by
investors to compare the performance of the Fund.
BGF World Energy Fund
The Fund is actively managed, and the IA has discretion to
select the Fund's investments. In doing so, the IA will refer
to the MSCI World Energy 30% Buffer 10-40 Index (the
“Index”) when constructing the Fund’s portfolio, and also
for risk management purposes to ensure that the active
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BGF Latin American Fund
The Fund is actively managed, and the IA has discretion to
select the Fund's investments. In doing so, the IA will refer
to the MSCI Emerging Markets Latin America 10/40
Index (the “Index”) when constructing the Fund’s
portfolio, and also for risk management purposes to
ensure that the active risk (i.e. degree of deviation from
the Index) taken by the Fund remains appropriate given
the Fund’s investment objective and policy. The IA is not
bound by the components or weighting of the Index when
selecting investments. The IA may also use its discretion
to invest in securities not included in the Index in order to
take advantage of specific investment opportunities.
However, the geographical scope of the investment
objective and policy may have the effect of limiting the
extent to which the portfolio holdings will deviate from the
Index. The Index should be used by investors to compare
the performance of the Fund.
BGF Euro Corporate Bond Fund
The Fund is actively managed, and the IA has discretion to
select the Fund's investments. In doing so, the IA will refer
to the ICE BofAML Euro Corporate Index (the
“Index”) when constructing the Fund’s portfolio, and also
for risk management purposes to ensure that the active
risk (i.e. degree of deviation from the index) taken by
the Fund remains appropriate given the Fund’s
investment objective and policy. The IA is not bound by
the components or weighting of the Index when selecting
investments. The IA may also use its discretion to invest in
securities not included in the Index in order to take
advantage of specific investment opportunities.
However, the geographical scope of the investment
objective and policy may have the effect of limiting the
extent to which the portfolio holdings will deviate from the
Index. The Index should be used by investors to compare
the performance of the Fund.
BSF Sustainable Fixed Income Credit Strategies Fund
The Fund is actively managed and the IA has discretion to
select the Fund's investments and is not constrained by
any benchmark in this process. The Overnight Euro
Short Term Rate (€STR) should be used by shareholders
to compare the performance of the Fund.
BGF US Dollar High Yield Bond Fund
The Fund is actively managed, and the IA has discretion to
select the Fund's investments. In doing so, the IA will refer
to the Bloomberg US Corporate High Yield 2%
Constrained Index (the “Index”) when constructing the
Fund’s portfolio, and also for performance comparison
and risk management purposes as further described in
the prospectus. The IA is not bound by the components or
weighting of the Index when selecting investments and
may also use its discretion to invest in securities not
included in the Index. However, the currency
requirements of the investment objective and policy limit
the extent to which the portfolio holdings will deviate from
the Index.
BGF Sustainable Fixed Income Global Opportunities
Fund
The Fund is actively managed. The IA has discretion to
select the Fund's investments and is not constrained by
any benchmark in this process.
BSF Sustainable Fixed Income Strategies Fund
The Fund is actively managed and the IA has discretion to
select the Fund's investments and is not constrained by
any benchmark in this process. The Overnight Euro Short
Term Rate (ESTR) should be used by shareholders to
compare the performance of the Fund.
BGF Sustainable Global Infrastructure Fund
The Fund is actively managed the IA has discretion to
select the Fund's investments. In doing so, the Investment
Adviser will refer to The FTSE 50/50 Developed Core
Infrastructure Index (the “Index”) when constructing the
Fund’s portfolio, and also for risk management purposes.
The Index should be used by investors to compare the
performance of the Fund.
BSF Asia Pacific Absolute Return Fund
The Fund is actively managed and the IA has discretion to
select the Fund's investments and is not constrained by
any benchmark in this process. The 3 Month Secured
Overnight Financing Rate (SOFR) compounded in arrears
plus 26.1 basis point spread should be used by
shareholders to compare the performance of the Fund.
Compounding in arrears is a methodology that
compounds daily values of the overnight rate throughout
the relevant term period (i.e.3 Months).
BGF Systematic Global Equity High Income Fund
The Fund is actively managed, and the IA has discretion to
select the Fund’s investments. In doing so may take into
consideration the MSCI ACWI Minimum Volatility Index
(the “Index”) when constructing the Fund’s portfolio, and
also for risk management purposes to ensure that the
active risk (i.e. degree of deviation from the index) taken
by the Fund remains appropriate given the Fund’s
investment objective and policy. The IA is not bound by
the components or weighting of the Index when selecting
investments. The IA may also use its discretion to invest in
securities not included in the Index in order to take
advantage of specific investment opportunities. The
Fund’s portfolio holdings are expected to deviate
materially from the Index.
BSF Emerging Markets Short Duration Bond Fund
The Fund is actively managed and the IA has discretion to
select the Fund’s investments and is not constrained by
any benchmark in this process. The JP Morgan EMBI
Global Diversified 1-3 year Index should be used by
shareholders to compare the performance of the Fund.
2023 EMEA Outlook Implementation Guide
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BGF ESG Global Conservative Income Fund
he Fund is actively managed and the IA has discretion to
select the Fund’s investments. In doing so, the IA may
refer to a composite benchmark comprising 30% MSCI
World Index EUR Hedged and 70% Bloomberg Global
Aggregate Bond Index EUR Hedged (the “Index”) for risk
management purposes to ensure that the active risk (i.e.
degree of deviation from the Index) taken by the Fund
remains appropriate given the Fund’s investment
objective and policy. The Fund’s portfolio is expected to
deviate materially from the Index. The components of the
Index (i.e. MSCI World Index and Bloomberg Global
Aggregate Bond Index US Hedged) may be quoted
separately in marketing material related to the Fund. The
Fund’s ESG score will be calculated as the total of each
security’s ESG score (where applicable), weighted by its
market value. The ESG score of the investable universe
will be calculated using the ESG scores of the relevant
asset class indices weighted to reflect the asset class
exposure in the Fund. These scores may be quoted for
individual asset classes or allocation weighted in
marketing material.
BGF Natural Resources Growth & Income Fund
The Fund is actively managed, and the IA has discretion to
select the Fund's investments. In doing so, the IA will refer
to the S&P Global Natural Resources Index (the “Index”)
when constructing the Fund’s portfolio, and also for risk
management purposes to ensure that the active risk (i.e.
degree of deviation from the Index) taken by the Fund
remains appropriate given the Fund’s investment
objective and policy. The IA is not bound by the
components or weighting of the Index when selecting
investments. The IA may also use its discretion to invest in
securities not included in the Index in order to take
advantage of specific investment opportunities. However,
the industry sector requirements of the investment
objective and policy may have the effect of limiting the
extent to which the portfolio holdings will deviate from the
Index. The Index should be used by investors to compare
the performance of the Fund.
BGF Nutrition Fund
The Fund is actively managed. The IA has discretion to
select the Fund's investments and is not constrained by
any benchmark in this process. The MSCI All Countries
World Index should be used by investors to compare the
performance of the Fund.
BGF Climate Action Equity Fund
The Fund is actively managed. The IA has discretion to
select the Fund's investments and is not constrained by
any benchmark in this process. The MSCI All Countries
World Index (the “Index”) should be used by investors to
compare the performance of the Fund.
BGF Climate Action Multi-Asset Fund
The Fund is actively managed. The IA has discretion to
select the Fund's investments and is not constrained by
any benchmark in this process. The Investment Adviser
may refer to a composite benchmark, the MSCI All
Country World Index 65% / Bloomberg Global Aggregate
Bond Index 35% (the Index) for risk management
purposes. The components of the Index (i.e. MSCI All
2023 EMEA Outlook Implementation Guide
Country World Index and Bloomberg Global Aggregate
Bond Index) may be quoted separately in marketing
material related to the Fund. The Fund’s ESG score will be
calculated as the total of each issuers ESG score (where
applicable), weighted by its market value. The ESG score
of the relevant benchmark will be calculated using the
ESG scores of the relevant asset class indices weighted to
reflect the benchmark allocations. These scores may be
quoted for individual asset classes or allocation weighted
in marketing material.
BGF Circular Economy Fund
The Fund is actively managed. The IA has discretion to
select the Fund's investments and is not constrained by
any benchmark in this process. The MSCI All Countries
World Index (MSCI ACWI) should be used by investors to
compare the performance of the Fund. The weighted
average ESG rating of the Fund will be higher than the
ESG rating of the MSCI ACWI after eliminating at least
20% of the least well rated securities from the MSCI ACWI.
BGF ESG Multi-Asset Fund
The Fund is actively managed and the extent to which the
Fund is invested in these asset classes may vary without
limit depending on market conditions and other factors at
the investment adviser’s (IA) discretion. In selecting these,
the IA may refer to a composite benchmark comprising
the 50% MSCI World Index and 50% FTSE World
Government Bond Euro Hedged Index (the “Index”) for
risk management purposes. The IA is not bound by the
components or weighting of the Index when selecting
investments. The IA may also use its discretion to invest in
securities not included in the Index in order to take
advantage of specific investment opportunities.
BSF Euro Short Duration Bond Fund
The Fund is actively managed and the IA has discretion to
select the Fund’s investments. In doing so, the IA will refer
to Bloomberg MSCI Euro Aggregate 1- 3 Years
Sustainable SRI Index (the “Index”) when constructing the
Fund’s portfolio, and also for risk management purposes
as further described in the prospectus. The Index should
be used by shareholders to compare the performance of
the Fund. Investors may use the Bloomberg EuroAggregate Bond Index (80%) and Bloomberg Global
Aggregate 1-3 Years Index (20%) to assess the impact of
ESG screening on the Fund’s investment universe. For
further details please see the prospectus.
BlackRock Tactical Opportunities Fund
The Fund is actively managed. The IM (investment
manager) has discretion to select the Fund’s investments
and is not constrained by any benchmark in this process.
BlackRock Systematic Multi-Strategy ESG Screened
Fund
The Fund is actively managed. The IM has discretion to
select the Fund’s investments and is not constrained by
any benchmark in this process.
19
EIIiH1122E/S-2607244-19/35
FOR PROFESSIONAL CLIENTS/QUALIFIED INVESTORS/QUALIFIED CLIENTS ONLY
BlackRock ICS Euro Government Liquidity Fund
The Fund is actively managed. The investment manager
has discretion to select the Fund’s investments and is not
constrained by any benchmark in this process. The Euro
Short-Term Rate (ESTR) should be used by investors to
compare the performance of the Fund.
BlackRock ICS Sterling Government Liquidity Fund
The Fund is actively managed. The investment manager
has discretion to select the Fund’s investments and is not
constrained by any benchmark in this process. The
Sterling Overnight Index Average Rate (SONIA) should be
used by investors to compare the performance of the
Fund.
BlackRock ICS US Dollar Government Liquidity Fund
The Fund is actively managed. The investment manager
has discretion to select the Fund’s investments and is not
constrained by any benchmark in this process. The
Secured Overnight Financing Rate (SOFR) should be used
by investors to compare the performance of the Fund.
BlackRock ICS Euro Liquidity Fund
The Fund is actively managed. The investment manager
has discretion to select the Fund’s investments and is not
constrained by any benchmark in this process. The Euro
Short-Term Rate (ESTR) should be used by investors to
compare the performance of the Fund
BlackRock ICS Sterling Liquidity Fund
The Fund is actively managed. The investment manager
has discretion to select the Fund’s investments and is not
constrained by any benchmark in this process. The
Sterling Overnight Index Average Rate (SONIA) should be
used by investors to compare the performance of the
Fund.
BlackRock ICS US Dollar Liquidity Fund
The Fund is actively managed. The investment manager
has discretion to select the Fund’s investments and is not
constrained by any benchmark in this process. The
Secured Overnight Financing Rate (SOFR) should be used
by investors to compare the performance of the Fund.
BlackRock ICS Euro Liquid Environmentally Aware
Fund
The Fund is a “Short Term Variable NAV Money Market
Fund” as defined by the EU Money Markets Funds
Regulations. The Fund is actively managed. The
investment manager has discretion to select the Fund’s
investments and is not constrained by any benchmark in
this process. The Euro Short-Term Rate (ESTR) should be
used by investors to compare the performance of the
Fund. The investments of this VNAV Fund are valued
using the mark-to-market method (i.e. a valuation based
on current market prices) where possible, and if not, the
mark-to-model method (i.e. a valuation based on a
financial model) is used. The NAV is calculated to four
decimal places and forms the dealing NAV.
2023 EMEA Outlook Implementation Guide
BlackRock ICS Sterling Liquid Environmentally Aware
Fund
The Fund is a “Short Term Variable NAV Money Market
Fund” as defined by the EU Money Markets Funds
Regulations. The Fund is actively managed. The
investment manager has discretion to select the Fund’s
investments and is not constrained by any benchmark in
this process. The Sterling Overnight Index Average Rate
(SONIA) should be used by investors to compare the
performance of the Fund. The investments of this VNAV
Fund are valued using the mark-to-market method (i.e. a
valuation based on current market prices) where possible,
and if not, the mark-to-model method (i.e. a valuation
based on a financial model) is used. The NAV is calculated
to four decimal places and forms the dealing NAV.
BlackRock ICS US Dollar Liquid Environmentally Aware
Fund
The Fund is a “Short Term Variable NAV Money Market
Fund” as defined by the EU Money Markets Funds
Regulations. The Fund is actively managed. The
investment manager has discretion to select the Fund’s
investments and is not constrained by any benchmark in
this process. The Secured Overnight Financing Rate
(SOFR) should be used by investors to compare the
performance of the Fund. The investments of this VNAV
Fund are valued using the mark-to-market method (i.e. a
valuation based on current market prices) where possible,
and if not, the mark-to-model method (i.e. a valuation
based on a financial model) is used. The NAV is calculated
to four decimal places and forms the dealing NAV.
BlackRock ICS Euro Ultra Short Bond Fund
The Fund is actively managed. The investment manager
has discretion to select the Fund’s investments and is not
constrained by any benchmark in this process. The 3
Month Euro Short Term Rate (ESTR) compounded in
arrears should be used by investors to compare the
performance of the Fund.
BlackRock ICS Sterling Ultra Short Bond Fund
The Fund is actively managed. The investment manager
has discretion to select the Fund’s investments and is not
constrained by any benchmark in this process. The 3
Month Sterling Overnight Index Average Rate (SONIA)
compounded in arrears should be used by investors to
compare the performance of the Fund.
BlackRock ICS US Dollar Ultra Short Bond Fund
The Fund is actively managed. The investment manager
has discretion to select the Fund’s investments and is not
constrained by any benchmark in this process. The 3
Month Secured Overnight Financing Rate (SOFR)
compounded in arrears should be used by investors to
compare the performance of the Fund.
20
EIIiH1122E/S-2607244-20/35
FOR PROFESSIONAL CLIENTS/QUALIFIED INVESTORS/QUALIFIED CLIENTS ONLY
Risk Warnings
Capital at risk. The value of investments and the income
from them can fall as well as rise and are not guaranteed.
Investors 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.
BlackRock has not considered the suitability of this
investment against your individual needs and risk
tolerance. The data displayed provides summary
information. Investment should be made on the basis of
the relevant Prospectus which is available from the
manager.
The products mentioned in this document are intended
for information purposes only and do not constitute
investment advice or an offer to sell or a solicitation of an
offer to buy the securities described within. This
document may not be distributed without authorisation
from BlackRock.
iShares € Corp Bond ESG UCITS ETF EUR (Dist)
Counterparty Risk, Credit Risk, ESG screening risk,
Liquidity Risk
iShares $ Corp Bond 0-3yr ESG UCITS ETF USD (Dist)
Counterparty Risk, ESG screening risk, Liquidity Risk,
Credit Bail in Risk
iShares $ High Yield Corp Bond ESG UCITS ETF USD
(Dist)
Concentration Risk, Counterparty Risk, Credit Risk, ESG
screening risk, Liquidity Risk, Non-Investment Grade Risk
iShares $ TIPS 0-5 UCITS ETF
Counterparty Risk, Credit Risk, Liquidity Risk
iShares J.P. Morgan ESG $ EM Bond UCITS ETF USD
(Acc)
Counterparty Risk, Credit Risk, Emerging Market
Government Fixed Income Securities Risk, ESG screening
risk, Liquidity Risk, Non-Investment Grade Risk
iShares Listed Private Equity UCITS ETF USD (Dist)
Concentration Risk, Counterparty Risk, Derivatives Risk,
Private Equity Securities Risk
iShares Global Infrastructure UCITS ETF USD (Dist)
Concentration Risk, Counterparty Risk, Equity Risk,
Investments in Infrastructure Securities Risk
Product Risks
iShares MSCI USA Quality Dividend ESG UCITS ETF
USD (Dist)
Counterparty Risk, Equity Risk
iShares MSCI World Health Care Sector ESG UCITS ETF
USD (Dist)
Concentration Risk, Counterparty Risk, Equity Risk
iShares Diversified Commodity Swap UCITS ETF
Concentration Risk, Counterparty Risk, Derivatives Risk,
Commodity Swaps Risk
iShares Edge MSCI World Momentum Factor UCITS
ETF USD (Acc)
Counterparty Risk, Equity Risk, Factor Focus Risk, Index
Methodology Risk
iShares Agribusiness UCITS ETF USD (Acc)
Concentration Risk, Counterparty Risk, Equity Risk,
Investments in Agriculture Securities Risk
iShares STOXX Europe 600 Banks UCITS ETF (DE)
Concentration Risk, Counterparty Risk, Equity Risk
iShares MSCI World Paris-Aligned Climate UCITS ETF
(ACC)
Counterparty Risk, Equity Risk, ESG screening risk
iShares MSCI World Energy Sector ESG UCITS ETF USD
(Dist)
Concentration Risk, Counterparty Risk, Equity Risk, ESG
screening risk
BlackRock ESG Multi-Asset Moderate Portfolio UCITS
ETF EUR (Acc)
Counterparty Risk, Credit Risk, Equity Risk, ESG screening
risk, Liquidity Risk, Commodity Swaps Risk
iShares Global Clean Energy UCITS ETF USD (Dist)
Concentration Risk, Counterparty Risk, Equity Risk,
Investments in the Global Clean Energy Industry Risk
iShares € Ultrashort Bond ESG UCITS ETF EUR (Dist)
Counterparty Risk, Credit Risk, ESG screening risk,
Liquidity Risk
iShares S&P 500 Equal Weight UCITS ETF USD (Acc)
Counterparty Risk, Equity Risk
iShares Edge MSCI World Minimum Volatility ESG
UCITS ETF USD (Acc)
Counterparty Risk, Equity Risk, ESG screening risk,
Volatility Risk
iShares MSCI EM ex-China UCITS ETF USD (Acc)
Counterparty Risk, Currency Risk, Emerging Markets Risk,
Equity Risk
iShares MSCI Brazil UCITS ETF (DE) (Acc)
Concentration Risk, Counterparty Risk, Currency Risk,
Emerging Markets Risk, Equity Risk, Liquidity Risk
2023 EMEA Outlook Implementation Guide
iShares Green Bond Index Fund
Concentration Risk, Counterparty Risk, Credit Risk,
Emerging Markets, Liquidity Risk
21
EIIiH1122E/S-2607244-21/35
FOR PROFESSIONAL CLIENTS/QUALIFIED INVESTORS/QUALIFIED CLIENTS ONLY
BGF Circular Economy
Circular Economy, Counterparty Risk, Currency Risk,
Emerging Markets, Equity Risk, Liquidity Risk, Smaller
Company Investments
BGF Climate Action Equity Fund
Counterparty Risk, Equity Risk, Liquidity Risk
BGF Climate Action Multi-Asset Fund
Counterparty Risk, Credit Risk, Equity Risk, Liquidity Risk
BGF ESG Global Conservative Income Fund
Counterparty Risk, Credit Risk, Currency Risk, Emerging
Markets, Equity Risk, Environmental, Social and
Governance (ESG) Risk, Liquidity Risk
BlackRock Global Unconstrained Equity Fund
Concentration Risk, Counterparty Risk, Equity Risk
BGF Natural Resources Growth & Income Fund
Concentration Risk, Counterparty Risk, Derivatives Risk,
Equity Risk, Erosion to Capital, Liquidity Risk, Natural
Resources
BGF Sustainable Fixed Income Global Opportunities
Fund
Asset Backed Securities / Mortgage-Backed Securities,
Counterparty Risk, Credit Risk, Currency Risk, Derivatives
Risk, Environmental, Social and Governance (ESG) Risk,
Liquidity Risk
BGF Sustainable Global Infrastructure Fund
Concentration Risk, Counterparty Risk, Equity Risk,
Investments in Infrastructure Securities, Environmental,
Social and Governance (ESG) Risk
BGF Sustainable Energy Fund
Concentration Risk, Counterparty Risk, Equity Risk,
Investments in the New Energy Securities Risk
BGF ESG Multi-Asset Fund
Counterparty Risk, Credit Risk, Derivatives Risk, Equity
Risk, Environmental, Social and Governance (ESG) Risk,
Liquidity Risk
BSF BlackRock Emerging Markets Short Duration Bond
Fund
Counterparty Risk, Credit Risk, Currency Risk, Derivatives
Risk, Emerging Markets, Liquidity Risk
BSF Global Real Asset Securities Fund
Concentration Risk, Counterparty Risk, Credit Risk, Equity
Risk, Investment in Property Securities Risk, Investments
in Infrastructure Securities, Risk to Capital Growth
Through Derivative Use
BGF Latin American Fund
Counterparty Risk, Currency Risk, Emerging Markets,
Equity Risk, Liquidity Risk
BGF US Flexible Equity Fund
Counterparty Risk, Equity Risk
BGF World Energy Fund
Concentration Risk, Counterparty Risk, Equity Risk,
Investments in Energy Securities
2023 EMEA Outlook Implementation Guide
BGF World Financials Fund
Concentration Risk, Counterparty Risk, Equity Risk
BGF World Healthscience Fund
Active Management of Currency Exposure, Concentration
Risk, Counterparty Risk, Equity Risk
BlackRock Systematic Multi-Strategy ESG Screened
Fund
Counterparty Risk, Credit Risk, Equity Risk, Financial
Markets, Counterparties and Service Providers
BGF Systematic Global Equity High Income Fund
Counterparty Risk, Currency Risk, Equity Risk, Risk to
Capital Growth Through Derivative Use
BGF Euro Corporate Bond Fund
Counterparty Risk, Credit Risk, Derivatives Risk, Liquidity
Risk
BGF Euro Short Duration Bond Fund
Counterparty Risk, Credit Risk, Derivatives Risk, Liquidity
Risk
BGF Nutrition Fund
Concentration Risk, Counterparty Risk, Equity Risk,
Investments in Agriculture Securities, Liquidity Risk
BSF Blackrock Asia Pacific Absolute Return Fund
Absolute Return Risk, Counterparty Risk, Currency Risk,
Derivatives Risk, Emerging Markets, Equity Risk, Liquidity
Risk
BSF BlackRock Sustainable Euro Corporate Bond Fund
Counterparty Risk, Credit Risk, Derivatives Risk,
Environmental, Social and Governance (ESG) Risk,
Liquidity Risk
BSF Sustainable Euro Short Duration Bond Fund
Counterparty Risk, Credit Risk, Derivatives Risk,
Environmental, Social and Governance (ESG) Risk,
Liquidity Risk
BlackRock Sustainable Fixed Income Credit Strategies
Fund
Asset Backed Securities / Mortgage-Backed Securities,
Counterparty Risk, Credit Risk, Derivatives Risk,
Environmental, Social and Governance (ESG) Risk,
Liquidity Risk, Non-Investment Grade Risk
BSF - BlackRock Sustainable Fixed Income Strategies
Fund
Asset Backed Securities / Mortgage-Backed Securities,
Counterparty Risk, Credit Risk, Derivatives Risk,
Environmental, Social and Governance (ESG) Risk,
Liquidity Risk, Non-Investment Grade Risk
BlackRock Sustainable Advantage US Equity Fund
Counterparty Risk, Equity Risk
Tactical Opportunities Fund
Absolute Return Risk - Style Advantage, Combined Risks
(Equity, Credit, ABS/MBS), Counterparty Risk, Credit Risk,
Liquidity Risk
22
EIIiH1122E/S-2607244-22/35
FOR PROFESSIONAL CLIENTS/QUALIFIED INVESTORS/QUALIFIED CLIENTS ONLY
Private Equity Impact Opportunities ELTIF
Restriction on withdrawal, Lack of available investments,
Concentration risk, Valuation risk, Environmental, Social
and Governance (ESG) Risk, Private Equity, CoInvestment
BlackRock ICS Euro Government Liquidity Fund
Accumulating Share Class Risk, Counterparty Risk, Credit
Risk, Short Term Money Market Funds
BlackRock ICS Euro Liquid Environmentally Aware
Fund
Accumulating Share Class Risk, Counterparty Risk, Credit
Risk, Short Term Money Market Funds
BlackRock ICS Euro Liquidity Fund
Accumulating Share Class Risk, Counterparty Risk, Credit
Risk, Short Term Money Market Funds
BlackRock ICS Euro Ultra Short Bond Fund
Accumulating Share Class Risk, Counterparty Risk, Credit
Risk, Money Market Funds
BlackRock ICS Sterling Government Liquidity Fund
Accumulating Share Class Risk, Concentration Risk,
Counterparty Risk, Credit Risk, Short Term Money Market
Funds
BlackRock ICS Sterling Liquid Environmentally Aware
Fund
Accumulating Share Class Risk, Counterparty Risk, Credit
Risk, Short Term Money Market Funds
BlackRock ICS Sterling Liquidity Fund
Accumulating Share Class Risk, Counterparty Risk, Credit
Risk, Short Term Money Market Funds
BlackRock ICS Sterling Ultra Short Bond Fund
Accumulating Share Class Risk, Counterparty Risk, Credit
Risk, Money Market Funds
BlackRock ICS US Dollar Liquid Environmentally Aware
Fund
Accumulating Share Class Risk, Counterparty Risk, Credit
Risk, Short Term Money Market Funds
BlackRock ICS US Dollar Liquidity Fund
Accumulating Share Class Risk, Counterparty Risk, Credit
Risk, Short Term Money Market Funds
BlackRock ICS US Dollar Ultra Short Bond Fund
Accumulating Share Class Risk, Counterparty Risk, Credit
Risk, Money Market Funds
BlackRock ICS US Treasury Fund
Accumulating Share Class Risk, Concentration Risk,
Counterparty Risk, Credit Risk, Short Term Money Market
Funds
2023 EMEA Outlook Implementation Guide
Description of Product Risks
Absolute Return Risk
Due to its investment strategy an 'Absolute Return' fund
may not move in line with market trends or fully benefit
from a positive market environment.
Accumulating Share Class Risk
On any day where the net return (i.e. return less costs and
expenses) of the Fund is negative an Accumulating Share
Class of the fund will see a decrease in the NAV per Share.
Active Management of Currency Exposure
Active management of currency exposure through
derivatives may make the Fund more sensitive to changes
in foreign exchange rates. If the currency exposures
against which the Fund is hedged appreciates investors
may not benefit from such appreciation.
Asset Backed Securities / Mortgage-Backed Securities
Asset backed securities and mortgage backed securities
are subject to the same risks described for fixed income
securities. These instruments may be subject to 'Liquidity
Risk', have high levels of borrowing and may not fully
reflect the value of underlying assets.
Circular Economy
Due to the criteria applied during stock selection to meet
the definition of Circular Economy, the range of
companies the fund can invest in may be less diversified
than a typical fund. Circular Economy companies may be
subject to environmental concerns, taxes, government
regulation, price, supply and competition. Investors
should consider this fund as part of a broader investment
strategy.
Commodity Swaps Risk
The prices of commodities tend to experience greater
variations than other asset classes (e.g. equities or fixed
income securities). Investments in commodities are
therefore potentially riskier than other types of
investments.
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.
Counterparty Risk
The insolvency of any institutions providing services such
as safekeeping of assets or acting as counterparty to
derivatives or other instruments, may expose the Share
Class to financial loss.
Combined Risks (Equity, Credit, ABS/MBS)
Equities and equity-related securities can be affected by
daily stock market movements. Fixed Income securities
can be affected by changes to interest rates, credit risk
and potential or actual credit rating downgrades. Noninvestment grade FI securities can be more sensitive to
these events. ABS and MBS may have high levels of
borrowing and not fully reflect the value of underlying
assets. FDIs are highly sensitive to changes in the value of
the asset they are based on. The impact is greater where
FDIs are used in an extensive or complex way.
23
EIIiH1122E/S-2607244-23/35
FOR PROFESSIONAL CLIENTS/QUALIFIED INVESTORS/QUALIFIED CLIENTS ONLY
Credit Risk
The issuer of a financial asset held within the Fund may
not pay income or repay capital to the Fund when due.
Credit Bail in Risk
The issuer of a financial asset held within the Fund may
not pay income or repay capital to the Fund when due. If a
financial institution is unable to meet its financial
obligations, its financial assets may be subject to a write
down in value or converted (i.e. “bail-in”) by relevant
authorities to rescue the institution.
Currency Risk
The Fund invests in other currencies. Changes in
exchange rates will therefore affect the value of the
investment.
Derivatives Risk
Derivatives may be highly sensitive to changes in the
value of the asset on which they are based and can
increase the size of losses and gains, resulting in greater
fluctuations in the value of the Fund. The impact to the
Fund can be greater where derivatives are used in an
extensive or complex way.
Emerging Market Government Fixed Income Securities
Risk
Fixed income securities issued or guaranteed by
government entities in emerging markets generally
experience higher ‘Credit Risk’ than developed economies.
Emerging Markets Risk
Emerging markets are generally more sensitive to
economic and political conditions than developed
markets. Other factors include greater 'Liquidity Risk',
restrictions on investment or transfer of assets and
failed/delayed delivery of securities or payments to the
Fund.
Erosion to Capital
This Share Class may pay dividends or take charges from
capital. While this may allow more income to be
distributed, it may reduce the value of your holdings and
impact the potential for long term capital growth.
Equity Risk
The value of equities and equity-related securities can be
affected by daily stock market movements. Other
influential factors include political, economic news,
company earnings and significant corporate events.
ESG screening risk / Environmental, Social and
Governance (ESG) risk
The benchmark index only excludes companies engaging
in certain activities inconsistent with ESG criteria if such
activities exceed the thresholds determined by the index
provider. Investors should therefore make a personal
ethical assessment of the benchmark index’s ESG
screening prior to investing in the Fund. Such ESG
screening may adversely affect the value of the Fund’s
investments compared to a fund without such screening.
2023 EMEA Outlook Implementation Guide
Factor Focus Risk
Indices with a factor focus are less diversified than their
parent index because they have predominant exposure to
a single factor rather than the multiple factor exposure of
most indices. Therefore they will be more exposed to
factor related market movements. Investors should
consider this fund as part of a broader investment
strategy.
Financial Markets, Counterparties and Service
Providers
The insolvency of any institutions providing services such
as safekeeping of assets or acting as counterparty to
derivatives or other instruments, may expose the Fund to
financial loss.
Index Methodology Risk
Although the Benchmark Index was created to select
securities within the Parent Index for their recent price
increases on the assumption that such increases will
continue, there is no guarantee this objective will be
achieved.
Investments in Agriculture Securities Risk
Investments in agriculture securities are subject to
environmental concerns, taxes, government regulation,
price and supply changes.
Investments in Energy Securities
Investments in energy securities are subject to
environmental concerns, taxes, government regulation,
price and supply changes.
Investments in Infrastructure Securities Risk
Investments in infrastructure securities are subject to
environmental concerns, taxes, government regulation,
price, supply and competition.
Investments in the Global Clean Energy Industry Risk
Investments in the global clean energy industry are
subject to environmental concerns, taxes, government
regulation, price, supply and competition.
Investments in the New Energy Securities Risk
Investments in the new energy securities are subject to
environmental concerns, taxes, government regulation,
price and supply fluctuations.
Investment in Property Securities Risk
Investments in property securities can be affected by the
general performance of stock markets and the property
sector. In particular, changing interest rates can affect the
value of properties in which a property company invests.
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.
Money Market Funds
Money Market Funds do not generally experience extreme
price variations. Changes in interest rates will impact the
Fund. Levels of credit risk are affected by longer weighted
average maturity and weighted average life of the Fund.
24
EIIiH1122E/S-2607244-24/35
FOR PROFESSIONAL CLIENTS/QUALIFIED INVESTORS/QUALIFIED CLIENTS ONLY
Natural Resources
Investments in natural resources securities are subject to
environmental concerns, taxes, government regulation,
price and supply fluctuations.
market conditions. There can be no assurance that the
Funds will be able to locate, attain and exit investments
that satisfy their investment objectives, or that the Funds
will be able to fully invest their committed capital.
Non-Investment Grade Risk
Non-investment grade fixed income securities are more
sensitive to changes in interest rates and present greater
‘Credit Risk’ than higher rated fixed income securities.
Concentration risk (ELTIF)
The Funds may participate in a limited number of
investments and so the return of the Funds may be
materially and adversely affected by any unfavourable
performance of even a single investment. In addition,
investors have no assurance as to the degree of
diversification of the Funds’ investments, either by
geographic region or transaction type. To the extent the
Funds have concentrated investments in a particular
industry, geography, vintage or any other characteristic,
their investments will become more susceptible to
fluctuations in value resulting from adverse economic
and business conditions.
Private Equity Securities Risk
Private equity securities can be affected by daily stock
market movements, political and economic news,
company earnings and significant corporate events.
Private equity companies may involve additional risks
including higher levels of borrowing, unclear distribution
of risk and losses within the private equity structure and
constraints on buying and selling underlying investments
quickly.
Risk to Capital Growth Through Derivative Use
The Fund may pursue investment strategies using
derivatives in order to generate income which may have
the effect of reducing capital and the potential for longterm capital growth as well as increasing any capital
losses.
Short Term Money Market Funds
Short Term Money Market Funds do not generally
experience extreme price variations. Changes in interest
rates will impact the Fund.
Smaller Company Investments
Shares in smaller companies typically trade in less
volume and experience greater price variations than
larger companies.
Volatility Risk
The Fund tracks an index comprising securities with lower
volatility historically. “Minimum volatility” in the Fund’s
name refers to its underlying index exposure and not to its
trading price. There is no guarantee that the trading price
of its shares on exchanges will have low volatility.
Restriction on withdrawal
The Funds are not intended to be short-term investments
and have no certainty of returns. An investment in the
Fund is a long-term commitment. It is anticipated that
there may be a significant period of time (up to ten years
or more) before all of the Fund’s Portfolio Investments are
fully realised. And Interests in the Fund nor any Fund
investments are expected to be, freely assignable or
transferable. Except in extremely limited circumstances,
withdrawals from the Fund will not be permitted, and it is
not anticipated that the Fund will be permitted to
withdraw from its Investments. Investors must be
prepared to bear the risks of owning Interests, including
the obligation to make capital contributions, for an
extended period of time.
Lack of available investments
The Funds will be competing for exposure to investments
in a highly competitive market, against other funds, as
well as individuals, financial institutions, strategic players
and other investors, some of which may have greater
resources than the Investment Manager. The availability
of investment opportunities generally will be subject to
2023 EMEA Outlook Implementation Guide
Valuation risk
The Funds will be exposed to securities and other assets
that will not have readily assessable market values. The
valuation of such securities and other assets is inherently
subjective and subject to increased risk that the
information utilised to value such assets or to create the
price models may be inaccurate or subject to other error.
Due to a wide variety of market factors and the nature of
the securities and assets to which the Funds will be
exposed, there is no guarantee that any value determined
will represent the value that will be realised on the
eventual disposition of the Funds’ investments or that
would, in fact, be realised upon an immediate disposition
of such investment.
ESG (ELTIF)
Investment Opportunity Selection. When evaluating and
managing investments, the AIFM and/or the Investment
Manager will take into account certain economic, social
and governance (ESG) principles (please refer to the fund
documentation for further details on the Fund ESG
Policy). This may mean that the Fund foregoes
opportunities to purchase, or otherwise reducing
exposure to, certain investments due to their ESG
characteristics. As such, the Fund’s ESG Policy may affect
its investment performance and so it may perform
differently compared to funds that do not apply such
criteria.
Private Equity
Private Equity Funds invest exclusively or almost entirely
in financial instruments issued by companies that are not
listed (or that take-over publicly listed companies with a
view to delisting them). Investment in private equity funds
is typically by way of commitment (i.e. whereby an
investor agrees to commit to invest a certain amount in
the fund and this amount is drawn down by the fund as
and when it is needed to make private equity
investments). Interest in an underling private equity fund
will consist primarily of capital commitments to, and
investments in private equity strategies and activities
which involve a high level of risk and uncertainty. Except
for certain secondary funds, private equity funds will have
no operating history upon which to evaluate their likely
performance. Historical performance of private equity
funds is not a guarantee or prediction of their future
performance. Investments in Private Equity are often
illiquid and investors seeking to redeem their holdings
can experience significant delays and fluctuations in
value.
25
EIIiH1122E/S-2607244-25/35
FOR PROFESSIONAL CLIENTS/QUALIFIED INVESTORS/QUALIFIED CLIENTS ONLY
Regulatory Information
This material is for distribution to Professional Clients
(as defined by the Financial Conduct Authority or
MiFID Rules) only and should not be relied upon by any
other persons.
In the UK and Non-European Economic Area (EEA)
countries: this is Issued by BlackRock Investment
Management (UK) Limited, authorised and regulated by
the Financial Conduct Authority. Registered office: 12
Throgmorton Avenue, London, EC2N 2DL. Tel: + 44 (0)20
7743 3000. Registered in England and Wales No.
02020394. For your protection telephone calls are usually
recorded. Please refer to the Financial Conduct Authority
website for a list of authorised activities conducted by
BlackRock.
In the UK and Non-European Economic Area (EEA)
countries: this is Issued by BlackRock Advisors (UK)
Limited, which is authorised and regulated by the
Financial Conduct Authority. Registered office: 12
Throgmorton Avenue, London, EC2N 2DL, Tel: +44 (0)20
7743 3000. Registered in England and Wales No.
00796793. For your protection, calls are usually recorded.
Please refer to the Financial Conduct Authority website
for a list of authorised activities conducted by BlackRock.
In the European Economic Area (EEA): this is Issued by
BlackRock (Netherlands) B.V. is authorised and regulated
by the Netherlands Authority for the Financial Markets.
Registered office Amstelplein 1, 1096 HA, Amsterdam,
Tel: 020 – 549 5200, Tel: 31-20-549-5200. Trade Register
No. 17068311 For your protection telephone calls are
usually recorded.
In Israel: this is Issued by BlackRock Investment
Management (UK) Limited, authorised and regulated by
the Financial Conduct Authority. Registered office: 12
Throgmorton Avenue, London, EC2N 2DL. Tel: + 44 (0)20
7743 3000. Registered in England and Wales No.
02020394. For your protection telephone calls are usually
recorded. Please refer to the Financial Conduct Authority
website for a list of authorised activities conducted by
BlackRock.
iShares plc, iShares II plc, iShares III plc, iShares IV plc,
iShares V plc, iShares VI plc and iShares VII plc (together
'the Companies') are open-ended investment companies
with variable capital having segregated liability between
their funds organised under the laws of Ireland and
authorised by the Central Bank of Ireland.
The German domiciled funds are "undertakings for
collective investment in transferable securities" in
conformity with the directives within the meaning of the
German Law on the investments. These funds are
managed by BlackRock Asset Management Deutschland
AG which is authorised and regulated by the
Bundesanstalt für Finanzdienstleistungsaufsicht.
Further information about the Fund and the Share Class,
such as details of the key underlying investments of the
Share Class and share prices, is available on the iShares
website at www.ishares.com or by calling +44 (0)845 357
7000 or from your broker or financial adviser. The
indicative intra-day net asset value of the Share Class is
available at http://deutsche-boerse.com and/or
2023 EMEA Outlook Implementation Guide
http://www.reuters.com. A UCITS ETF’s units / shares
that have been acquired on the secondary market cannot
usually be sold directly back to the UCITS ETF itself.
Investors who are not Authorised Participants must buy
and sell shares on a secondary market with the assistance
of an intermediary (e.g. a stockbroker) and may incur fees
and additional taxes in doing so. In addition, as the
market price at which the Shares are traded on the
secondary market may differ from the Net Asset Value per
Share, investors may pay more than the then current Net
Asset Value per Share when buying shares and may
receive less than the current Net Asset Value per Share
when selling them.
BGF & BSF: This document is marketing material.
BlackRock Global Funds (BGF) and BlackRock Strategic
Funds (BSF) are open-ended investment companies
established and domiciled in Luxembourg which are
available for sale in certain jurisdictions only. BGF and
BSF are not available for sale in the U.S. or to U.S.
persons. Product information concerning BGF and BSF
should not be published in the U.S. BlackRock Investment
Management (UK) Limited is the Principal Distributor of
BGF and BSF and may terminate marketing at any time.
Subscriptions in BGF and BSF are valid only if made on
the basis of the current Prospectus, the most recent
financial reports and the Key Investor Information
Document, which are available in local language in
registered jurisdictions and can be found at
www.blackrock.com on the relevant product pages.
Prospectuses, Key Investor Information Documents and
application forms may not be available to investors in
certain jurisdictions where the Fund in question has not
been authorised. Investors should understand all
characteristics of the funds objective before investing. For
information on investor rights and how to raise
complaints please go to
https://www.blackrock.com/corporate/compliance/inves
tor-right available in local language in registered
jurisdictions.
BlackRock Funds I ICAV: This document is marketing
material. The BlackRock Global Unconstrained Equity
Fund, the BlackRock Sustainable Advantage US Equity
Fund and the BlackRock Systematic Multi-Strategy ESG
Screened Fund Class D USD Acc are sub-funds of the
BlackRock Funds I ICAV (the ‘Fund’). The Fund is
structured as a unit trust organised under the laws of
Ireland and authorised by the Central Bank of Ireland as
UCITS for the purposes of UCITS Regulations. Investment
in the sub-fund(s) is only open to 'Qualified Holders', as
defined in the relevant Fund Prospectus. Any decision to
invest must be based solely on the information contained
in the Company’s Prospectus, Key Investor Information
Document (KIID) and the latest half-yearly report and
unaudited accounts and/or annual report and audited
accounts, which are available in registered jurisdictions
and available in local language where registered can be
found at www.blackrock.com on the relevant product
pages. Investors should understand all characteristics of
the funds objective before investing. Prospectuses, Key
Investor Information Documents and application forms
may not be available to investors in certain jurisdictions
where the Fund in question has not been authorised.
Blackrock may terminate marketing at any time. For
information on investor rights and how to raise
complaints please go to
https://www.blackrock.com/corporate/compliance/inves
tor-right available in local language in registered
26
jurisdictions.
EIIiH1122E/S-2607244-26/35
FOR PROFESSIONAL CLIENTS/QUALIFIED INVESTORS/QUALIFIED CLIENTS ONLY
FIDF: This document is marketing material. The iShares
Green Bond Index Fund is a sub fund of BlackRock Fixed
Income Dublin Funds (plc) (the Fund). The Fund is
organised under the laws of Ireland and authorised by the
Central Bank of Ireland as UCITS for the purposes of the
UCITS Regulations. Investment in the sub-fund(s) is only
open to 'Qualified Holders', as defined in the relevant Fund
Prospectus. Subscriptions in the Fund are valid only if
made on the basis of the current Prospectus, the most
recent financial reports and the Key Investor Information
Document, which are available in registered jurisdictions
and available in local language where registered can be
found at www.blackrock.com on the relevant product
pages. Investors should understand all characteristics of
the funds objective before investing. Prospectuses, Key
Investor Information Documents and application forms
may not be available to investors in certain jurisdictions
where the Fund in question has not been authorised.
BlackRock may terminate marketing at any time. For
information on investor rights and how to raise complaints
please go to
https://www.blackrock.com/corporate/compliance/invest
or-right available in local language in registered
jurisdictions.
PEP: These materials have been provided to you on a
confidential basis for information purposes only, are subject
to modification, change or supplement without prior notice
to you (including without limitation any information
pertaining to strategies used), and do not constitute
investment advice or recommendation and should not be
relied upon by you in evaluating the merits of investing in
any securities referred to herein. The information presented
herein is provided solely as reference material with respect to
PEP and its activities. It does not constitute an offer to sell or
a solicitation of an offer to buy any interests in any PEP fund
(each, a “PEP Fund” and, collectively, the “PEP Funds”). Any
such offering will occur only at such time that a private
placement memorandum (“PPM”) of a PEP Fund is made
available and only in accordance with the terms and
conditions set forth in the PPM. Prospective investors are
strongly urged to review the PPM when available for more
complete information (including the risk factors described
therein). All information provided herein is qualified by
reference to the PPM. There can be no assurance that a PEP
Fund’s investment objectives will be achieved and
investment results may vary substantially over time.
Investment in a PEP Fund is not intended to be a complete
investment program for any investor.
ICS: This document is for Professional Clients only and
should not be relied upon by any other persons. This
document is marketing material. The Institutional Cash
Series plc (the “Company”) is an investment company
with variable capital and having segregated liability
between its funds incorporated with limited liability under
the laws of Ireland. The Company is an umbrella
undertaking for collective investment in transferable
securities (UCITS) governed by Irish law and authorised
by the Central Bank of Ireland.
PEP is not making any recommendation or soliciting any
action based upon the information contained herein. This
information is furnished to you with the express
understanding that it does not constitute: (i) an offer,
solicitation or recommendation to invest in a particular
investment in any jurisdiction; (ii) a means by which any
such investment may be offered or sold; or (iii) advice or an
expression of PEP’s view as to whether a particular
investment is appropriate for you and meets your financial
objectives.
Nothing herein constitutes an offer to invest in the
Institutional Cash Series plc (“The Company”). Any
decision to invest must be based solely on the
information contained in the Company’s Prospectus, Key
Investor Information Document and the latest half-yearly
report and unaudited accounts and/or annual report and
audited accounts. Investors should read the fund specific
risks in the Key Investor Information Document. The
distribution of this information in certain jurisdictions
may be restricted and, persons into whose possession this
information comes are required to inform themselves
about and to observe such restrictions. Prospective
investors should take their own independent advice prior
to making a decision to invest in this fund about the
suitability of the fund for their particular circumstances,
including in relation to taxation, and should inform
themselves as to the legal requirements of applying for an
investment.
The information contained in these materials has been
compiled as of April 2022, unless otherwise stated herein.
Where the information is from third party sources, the
information is from sources believed to be reliable, but none
of the PEP Funds, their placement agent, BlackRock, Inc.,
PEP, PEP Funds’ advisers or any of their respective affiliates,
or the partners, officers or employees (as the case may be) of
any of them, has independently verified any of the
information contained herein or assumes any liability for it.
Additionally, none of these parties is required to provide
recipients of this document with updates, modifications, or
amendments to the information, opinions, estimates, or
forecasts described herein should BlackRock, its affiliates, or
any third party sources determine that such currently set
forth communication becomes inaccurate.
Investments in the fund are not deposits with a bank or
deposit-taking institution. While distributing shares of the
fund seek to maintain a stable net asset value per share,
investors may lose money by investing in the funds.
2023 EMEA Outlook Implementation Guide
27
EIIiH1122E/S-2607244-27/35
FOR PROFESSIONAL CLIENTS/QUALIFIED INVESTORS/QUALIFIED CLIENTS ONLY
For investors in Finland
This document is marketing material. The funds
mentioned are registered for public distribution in Finland
and are authorised by the Finanssivalvonta (Fiva), the
Financial Supervisory Authority (FIN-FSA), in Finland. Any
decision to invest must be based solely on the
information contained in the Company’s Prospectus, Key
Investor Information Document and the latest half-yearly
report and unaudited accounts and/or annual report and
audited accounts which can be found at
www.blackrock.com/fi and are available in English and
Finnish. Investors should read the fund specific risks in
the Key Investor Information Document and the
Company’s Prospectus. This document is strictly
confidential and may not be distributed without
authorisation from BlackRock. BlackRock may terminate
marketing at any time. Investors should understand all
characteristics of the funds objective before investing. For
information on investor rights and how to raise
complaints please go to
https://www.blackrock.com/corporate/compliance/inves
tor-right available in English.
BGF/BSF/I ICAV/ICS/FIDF: This document is marketing
material. The prospectus (in English language) and KIID
(in Finnish language) are available at BlackRock
(Netherlands) B.V. and also from www.blackrock.com/fi
available in Finnish and English. BlackRock may
terminate marketing at any time. Investors should
understand all characteristics of the funds objective
before investing. For information on investor rights and
how to raise complaints please go to
https://www.blackrock.com/corporate/compliance/inves
tor-right available in English.
For investors in Germany
This document is marketing material. The Sales
Prospectus and Key Investor Information Document, as
well as the annual and semi-annual reports are available
free of charge from Commerzbank Kaiserplatz, 60311
Frankfurt am Main, Germany. The Companies intend to
fulfil the prerequisites for treatment of their sub-funds as
so-called "transparent funds" pursuant to §§ 2 and 4 of
the German Investment Tax Act (Investmentsteuergesetz
– InvStG). However, it cannot be guaranteed that the
requirements will be met. The Companies reserve the
right to give up the "transparent status" and to not
undertake the necessary publications. Any decision to
invest must be based solely on the information contained
in the Company’s Prospectus, Key Investor Information
Document and the latest half-yearly report and unaudited
accounts and/or annual report and audited accounts
website at www.blackrock.com/de and are available in
German and English. Investors should read the fund
specific risks in the Key Investor Information Document
and the Company’s Prospectus. Please note that
important information about iShares VII funds is available
in the current prospectus and other documents that can
be obtained free of charge from the paying agent,
Deutsche Bank AG Taunusanlage 12, 60325 Frankfurt am
Main, Federal Republic of Germany. BlackRock may
terminate marketing at any time. Investors should
understand all characteristics of the funds objective
before investing. For information on investor rights and
how to raise complaints please go to
https://www.blackrock.com/corporate/compliance/inves
tor-right available in German.
2023 EMEA Outlook Implementation Guide
BGF/BSF/I ICAV/ICS/FIDF: This document is marketing
material. This is a financial promotion. For further
information, the prospectus, Key Investor Information
Document, annual report and semi-annual report can be
obtained free of charge in hardcopy form from the
German information centre: BlackRock (Netherlands) B.V.,
Frankfurt (Germany) Branch, Frankfurt am Main,
Bockenheimer Landstraße 2–4, 60306 Frankfurt am Main
and also from www.blackrock.com/de available in German
and English. Blackrock may terminate marketing at any
time. The paying agent in Germany is J.P. Morgan AG, CIB
/ Investor Services – Trustee & Fiduciary, Taunustor 1
(Taunus Turm), D-60310 Frankfurt am Main. Investors
should understand all characteristics of the funds
objective before investing. For information on investor
rights and how to raise complaints please go to
https://www.blackrock.com/corporate/compliance/inves
tor-right available in German.
For investors in Israel
BlackRock Investment Management (UK) Limited is not
licensed under Israel's Regulation of Investment Advice,
Investment Marketing and Portfolio Management Law,
5755-1995 (the “Advice Law”). No action has been taken
or will be taken in Israel that would permit a public
offering or distribution of the products mentioned in this
document to the public in Israel. The products mentioned
in this document have not been approved by the Israel
Securities Authority. In addition, the products mentioned
in this document are not regulated under the provisions
of Israel’s Joint Investment Trusts Law, 5754-1994 (the
“Joint Investment Trusts Law”). This document has not
been approved by the Israel Securities Authority and will
only be distributed to Israeli residents in a manner that
will not constitute "an offer to the public" under sections
15 and 15a of the Israel Securities Law, 5728-1968 (the
"Securities Law") or section 25 of the Joint Investment
Trusts Law, as applicable.
This document and the products mentioned herein are
being offered to those categories of investors listed in the
First Addendum (the “Addendum") to the Securities Law,
("Institutional Investors"); in all cases under
circumstances that will fall within the private placement
or other exemptions of the Joint Investment Trusts Law,
the Securities Law and any applicable guidelines,
pronouncements or rulings issued from time to time by
the Israel Securities Authority. This document may not be
reproduced or used for any other purpose, nor be
furnished to any other person other than those to whom
copies have been sent. Nothing in this document should
be considered investment advice or investment marketing
as defined in the Regulation of Investment Advice,
Investment Marketing and Portfolio Management Law,
5755-1995. This document does not constitute an offer
to sell or solicitation of an offer to buy any securities, nor
does it constitute an offer to sell to or solicitation of an
offer to buy from any person or persons in any state or
other jurisdiction in which such offer or solicitation would
be unlawful, or in which the person making such offer or
solicitation is not qualified to do so, or to a person or
persons to whom it is unlawful to make such offer or
solicitation.
28
EIIiH1122E/S-2607244-28/35
FOR PROFESSIONAL CLIENTS/QUALIFIED INVESTORS/QUALIFIED CLIENTS ONLY
For investors in Luxembourg
This document is marketing material. The Companies
have been notified to the Commission de Surveillance du
Secteur Financier in Luxembourg in order to market their
shares for sale to the public in Luxembourg and the
Companies are notified Undertaking in Collective
Investment for Transferable Securities (UCITS). The
Companies have not been listed on the Luxembourg
Stock Exchange, investors should contact their broker for
further information. Investment is subject to the
Prospectus, Key Investor Information Document and all
documents (the main/umbrella Prospectus, the
Supplement[s], the latest and any previous annual and
semi-annual reports of the Companies and the
Memorandum and Articles of Association of the
Companies) will be available in the Luxembourg, free of
charge, from the offices of the Local Agent, BNP Paribas
Securities Services, Luxembourg Branch 33, rue de
Gasperich Howald – Hesperange L-2085 Luxembourg or
by visiting the website on www.iShares.com which are
available in English. Investors should read the fund
specific risks in the Key Investor Information Document
and the Company’s Prospectus. BlackRock may terminate
marketing at any time. Investors should understand all
characteristics of the funds objective before investing. For
information on investor rights and how to raise
complaints please go to
https://www.blackrock.com/corporate/compliance/inves
tor-right available in English.
For investors in Norway
This document is marketing material. The funds
mentioned are registered for public distribution in Norway
and are authorised by Kredittilsynet, the Financial
Supervisory Authority of Norway. Any application for
shares in the funds is on the terms of the Prospectus, Key
Investor Information Document for the Companies. Any
decision to invest must be based solely on the
information contained in the Company’s Prospectus, Key
Investor Information Document and the latest half-yearly
report and unaudited accounts and/or annual report and
audited accounts. Investors should read the fund specific
risks in the Key Investor Information Document and the
Company’s Prospectus which can be found at
www.blackrock.com/no available in Norwegian and
English. This document is strictly confidential and may
not be distributed without authorisation from BlackRock.
BlackRock may terminate marketing at any time.
Investors should understand all characteristics of the
funds objective before investing. For information on
investor rights and how to raise complaints please go to
https://www.blackrock.com/corporate/compliance/inves
tor-right available in English.
BGF/BSF/I ICAV/ICS/FIDF: This document is marketing
material. The prospectus and KIID are available at
BlackRock (Netherlands) B.V. www.blackrock.com/no
available in Norwegian and English. BlackRock may
terminate marketing at any time. Investors should
understand all characteristics of the funds objective
before investing. For information on investor rights and
how to raise complaints please go to
https://www.blackrock.com/corporate/compliance/inves
tor-right available in English.
2023 EMEA Outlook Implementation Guide
For investors in Spain
This document is marketing material. The funds
mentioned are registered for public distribution in
Spain.The sales Prospectus has been registered with the
Spanish Securities Market Commission (Comisión
Nacional del Mercado de Valores ('CNMV')). The funds
which are registered in the official registry of the Spanish
Securities and Exchange Commission (CNMV) are iShares
plc (registration number 801), iShares II plc (registration
number 802) and iShares III plc (registration number
806), iShares IV plc (registration number 1402), iShares V
plc (registration number 977), iShares VI plc (registration
number 1091), iShares VII plc (registration number 886)
and iShares (Lux) (registration number 905). The official
registry, CNMV, must always be checked to see which sub
funds of the funds mentioned are registered for public
distribution in Spain. Any decision to invest must be
based solely on the information contained in the
Company’s Prospectus, Key Investor Information
Document and the latest half-yearly report and unaudited
accounts and/or annual report and audited accounts,
copies of which can be obtained free of charge at
www.iShares.es available in Spanish and English.
Investors should read the fund specific risks in the Key
Investor Information Document and the Company’s
Prospectus. This document contains products or services
of BlackRock, Inc. (or affiliates thereof) that might be
offered directly or indirectly within the Andorran
jurisdiction, and it should not be regarded as solicitation
of business in any jurisdiction including the Principality of
Andorra. BlackRock may terminate marketing at any time.
Investors should understand all characteristics of the
funds objective before investing. For information on
investor rights and how to raise complaints please go to
https://www.blackrock.com/corporate/compliance/inves
tor-right available in Spanish and Portuguese.
BGF/BSF: This document is marketing material. Certain
funds mentioned here are registered for distribution in
Spain. Additionally, certain funds are registered for
distribution in Portugal. In Spain, BlackRock Global Funds
(BGF) is registered with the number 140 in the Comisión
Nacional del Mercado de Valores de España (CNMV) and
BlackRock Strategic Funds (BSF) is registered with the
number 626. The Prospectus for each registered fund has
been registered with the CNMV and can be found at
www.blackrock.com/es available in Spanish and English.
In Portugal, certain share classes of certain BGF and BSF
funds are registered with the Comissão do Mercado de
Valores Mobiliários (CMVM) and the Prospectus for each
registered fund has been registered with the CMVM and
can be found at www.blackrock.com/pt available in
Portuguese and English. This document contains
products or services of BlackRock, Inc. (or affiliates
thereof) that might be offered directly or indirectly within
the Andorran jurisdiction, and it should not be regarded
as solicitation of business in any jurisdiction including
the Principality of Andorra. BlackRock may terminate
marketing at any time. Investors should understand all
characteristics of the funds objective before investing. For
information on investor rights and how to raise
complaints please go to
https://www.blackrock.com/corporate/compliance/inves
tor-right available in Spanish and Portuguese.
29
EIIiH1122E/S-2607244-29/35
FOR PROFESSIONAL CLIENTS/QUALIFIED INVESTORS/QUALIFIED CLIENTS ONLY
FIDF: This document is marketing material. Certain funds
mentioned here are registered for distribution in Spain. In
Spain, the BlackRock Index Selection Funds (ISF) are
registered with the number 1504 in the Comisión
Nacional del Mercado de Valores de España (CNMV), the
BlackRock Fixed Income Dublin Funds (FIDF) are
registered with the number 1505 with the CNMV, the
BlackRock Institutional Pooled Funds plc (BIPF) are
registered with the number 1503 with the CNMV, the
BlackRock Global Index Funds (BGIF) are registered with
the number 1239 with the CNMV and the Prospectus for
each registered fund has been registered with the CNMV
and can be found at www.blackrock.com/es available in
Spanish and English. No securities regulator in Spain has
confirmed the accuracy of any information contained
herein. BlackRock may terminate marketing at any time.
Investors should understand all characteristics of the
funds objective before investing. For information on
investor rights and how to raise complaints please go to
https://www.blackrock.com/corporate/compliance/inves
tor-right available in Spanish.
I ICAV: This document is marketing material, Certain
funds mentioned here are registered for distribution in
Spain. In Spain, the BlackRock Funds I ICAV range is
registered with the number 1742 in the Comisión
Nacional del Mercado de Valores de España (CNMV) and
the Prospectus for each registered fund has been
registered with the CNMV and can be found at
www.blackrock.com/es available in Spanish and English.
No securities regulator in any country within Spain has
confirmed the accuracy of any information contained
herein. BlackRock may terminate marketing at any time.
Investors should understand all characteristics of the
funds objective before investing. For information on
investor rights and how to raise complaints please go to
https://www.blackrock.com/corporate/compliance/inves
tor-right available in Spanish.
ICS: This document is marketing material. Certain funds
mentioned here are registered for distribution in Spain. In
Spain, the Institutional Cash Series PLC range is
registered with the number 542 in the Comisión Nacional
del Mercado de Valores de España (CNMV) and the
Prospectus for each registered fund has been registered
with the CNMV. No securities regulator in any country
within Spain has confirmed the accuracy of any
information contained herein. Blackrock may terminate
marketing at any time. Investors should understand all
characteristics of the funds objective before investing. For
information on investor rights and how to raise
complaints please go to
https://www.blackrock.com/corporate/compliance/inves
tor-right available in Spanish.
For investors in Sweden
This document is marketing material. The Funds
mentioned herein are registered for public distribution in
Sweden and are authorised by Finansinspektionen, the
Swedish Financial Supervisory Authority. Any application
for shares in the funds is on the terms of the Prospectus,
Key Investor Information Document, for the Companies.
Important information relating to the Companies is
contained in the relevant Prospectus, Key Investor
Information Document and other documents, copies of
which can be obtained free of charge from offices of the
2023 EMEA Outlook Implementation Guide
paying agent BlackRock (Netherlands) BV, Stockholm
branch Malmskillnadsgatan 32, SE-111 51 Stockholm,
Sverige. Any decision to invest must be based solely on
the information contained in the Company’s Prospectus,
Key Investor Information Document and the latest halfyearly report and unaudited accounts and/or annual
report and audited accounts which can be found at
www.blackrock.com/se available in Swedish and English.
Investors should read the fund specific risks in the Key
Investor Information Document and the Company’s
Prospectus. BlackRock may terminate marketing at any
time. Investors should understand all characteristics of
the funds objective before investing. For information on
investor rights and how to raise complaints please go to
https://www.blackrock.com/corporate/compliance/inves
tor-right available in English.
BGF/BSF/I ICAV/ICS/FIDF: This document is marketing
material. The prospectus and KIID are available at
BlackRock (Netherlands) B.V., Stockholm branch,
Malmskillnadsgatan 32, 111 51 Stockholm, Sweden and
also from www.blackrock.com/se available in Swedish and
English. Investors should read the KIID before making an
investment decision. BlackRock may terminate marketing
at any time. Investors should understand all
characteristics of the funds objective before investing. For
information on investor rights and how to raise
complaints please go to
https://www.blackrock.com/corporate/compliance/inves
tor-right available in English.
For investors in Switzerland
Professional and qualified.
This document is marketing material.
This document shall be exclusively made available to, and
directed at, qualified investors as defined in Article 10 (3)
of the CISA of 23 June 2006, as amended, at the exclusion
of qualified investors with an opting-out pursuant to Art. 5
(1) of the Swiss Federal Act on Financial Services
("FinSA").
For information on art. 8 / 9 Financial Services Act (FinSA)
and on your client segmentation under art. 4 FinSA,
please see the following website:
www.blackrock.com/finsa.
BGF/BSF: The BlackRock Strategic Funds (BSF)
BlackRock Emerging Markets Short Duration Bond,
Global Real Asset Securities, Blackrock Asia Pacific
Absolute Return, BlackRock Sustainable Euro Corporate
Bond, and BlackRock Sustainable Fixed Income
Strategies Funds / BlackRock Global Funds (BGF)
Circular Economy, Climate Action Equity, Climate Action
Multi-Asset, ESG Global Conservative Income,
Sustainable Fixed Income Global Opportunities,
Sustainable Energy, ESG Multi-Asset, Latin American, US
Flexible Equity, World Energy, World Financials, World
Healthscience, Systematic Global Equity High Income,
Euro Corporate Bond, Euro Short Duration Bond, and
Nutrition Funds are domiciled in Luxembourg. BlackRock
Asset Management Schweiz AG, Bahnhofstrasse 39, CH8001 Zurich, is the Swiss Representative and State Street
Bank International GmbH, Munich, Zurich Branch,
Beethovenstrasse 19, CH-8002 Zurich, the Swiss Paying
Agent. The Prospectus, Key Information Document or
equivalent, the Articles of Incorporation, the latest and
any previous annual and semi-annual reports are
available free of charge from the Swiss Representative.
Investors should read the fund specific risks in the Key
30
Information Document and the Prospectus.
EIIiH1122E/S-2607244-30/35
FOR PROFESSIONAL CLIENTS/QUALIFIED INVESTORS/QUALIFIED CLIENTS ONLY
The iShares ETFs are domiciled in Ireland, Switzerland
and Germany. BlackRock Asset Management Schweiz AG,
Bahnhofstrasse 39, CH-8001 Zurich, is the Swiss
Representative and State Street International GmbH,
Munich, Zurich Branch, Beethovenstrasse 19, CH-8002
Zürich the Swiss Paying Agent for the foreign iShares
ETFs registered in Switzerland. The Prospectus, the
Prospectus with integrated fund contract, the Key
Information Document or equivalent, the general and
particular conditions, the Articles of Incorporation, the
latest and any previous annual and semi-annual reports
of the iShares ETFs domiciled or registered in Switzerland
are available free of charge from BlackRock Asset
Management Schweiz AG. Investors should read the fund
specific risks in the Key Information Document or
equivalent and the Prospectus. The following ETFs
included in this document are registered in
Switzerland:
• iShares STOXX Europe 600 Banks UCITS ETF (DE)
• iShares MSCI World Health Care Sector ESG UCITS
ETF USD
• iShares Edge MSCI World Momentum Factor UCITS
ETF USD
• iShares MSCI World Energy Sector ESG UCITS ETF USD
• iShares Global Clean Energy UCITS ETF USD
• iShares MSCI EM ex-China UCITS ETF USD
• iShares MSCI Brazil UCITS ETF (DE)
• iShares € Corp Bond ESG UCITS ETF EUR
• iShares $ Corp Bond 0-3yr ESG UCITS ETF USD
iShares $ High Yield Corp Bond ESG UCITS ETF USD
• iShares $ TIPS 0-5 UCITS ETF
• iShares J.P. Morgan ESG $ EM Bond UCITS ETF USD
• iShares Listed Private Equity UCITS ETF USD
• iShares Global Infrastructure UCITS ETF USD
• iShares MSCI USA Quality Dividend ESG UCITS ETF
USD
• iShares Diversified Commodity Swap UCITS ETF
• iShares Agribusiness UCITS ETF USD
• iShares MSCI World Paris-Aligned Climate UCITS ETF
• iShares Edge MSCI World Minimum Volatility ESG
UCITS ETF USD
I ICAV: The BlackRock Funds I ICAV is domiciled in
Ireland. BlackRock Asset Management Schweiz AG,
Bahnhofstrasse 39, CH8001 Zurich, is the Swiss
Representative and State Street Bank International
GmbH, Munich, Zurich Branch, Beethovenstrasse 19, CH8002 Zürich, the Swiss Paying Agent. The Prospectus, Key
Information Document or equivalent, the Articles of
Incorporation, the latest and any previous annual and
semi-annual reports are available free of charge from the
Swiss representative. Investors should read the fund
specific risks in the Key Information Document or
equivalent and the Prospectus.
FIDF: The BlackRock Index Selection Fund, BlackRock
UCITS Funds and the BlackRock Fixed Income Dublin
Funds plc are domiciled in Ireland. BlackRock Asset
Management Schweiz AG, Bahnhofstrasse 39, CH-8001
Zurich, is the Swiss Representative and State Street Bank
International GmbH, Munich, Zurich Branch,
2023 EMEA Outlook Implementation Guide
Beethovenstrasse 19, CH-8002 Zürich, the Swiss Paying
Agent. The Prospectuses, Key Information Document or
equivalent, the Articles of Incorporation, the trust deeds,
the latest and any previous annual and semi-annual
reports are available free of charge from the Swiss
representative. Investors should read the fund specific
risks in the Key Information Document or equivalent and
the Prospectuses.
ICS: The Institutional Cash Series plc (ICS) Euro
Government Liquidity, ICS Sterling Government Liquidity,
US Dollar Government Liquidity, Euro Liquidity, Sterling
Liquidity, US Dollar Liquidity, Euro Liquid
Environmentally Aware, Sterling Liquid Environmentally
Aware, US Dollar Liquid Environmentally Aware, Euro
Ultra Short Bond, Sterling Ultra Short Bond, and US Dollar
Ultra Short Bond Funds are domiciled in Ireland.
BlackRock Asset Management Schweiz AG,
Bahnhofstrasse 39, CH-8001 Zurich, is the Swiss
Representative and State Street Bank International
GmbH, Munich, Zurich Branch, Beethovenstrasse 19, CH8002 Zürich, the Swiss Paying Agent. The Prospectus, Key
Information Document or equivalent, the Articles of
Incorporation, the latest and any previous annual and
semi-annual reports are available free of charge from the
Swiss Representative. Investors should read the fund
specific risks in the Key Information Document or
equivalent and the Prospectus.
For investors in the UK
This document is marketing material. This document is
directed at 'Professional Clients' only within the meaning
of the rules of the Financial Conduct Authority. This
document is intended for information purposes only and
does not constitute investment advice or an offer to sell or
a solicitation of an offer to buy the products described
within and no steps may be taken which would constitute
or result in a public offering in the UK. This document is
strictly confidential and may not be distributed without
authorisation from BlackRock Advisors (UK) Limited. Any
decision to invest must be based solely on the
information contained in the Prospectus, Base
Prospectus, Key Investor Information Document, Key
Information Document and the latest half-yearly report
and unaudited accounts and/or annual report and
audited accounts which are available at www.ishares.com
in English. Investors should read the specific risks in the
Key Investor Information Document, the Key Information
Document the Prospectus and the Base Prospectus.
BlackRock may terminate marketing at any time.
Restricted Investors
This document is not, and under no circumstances is to
be construed as an advertisement or any other step in
furtherance of a public offering of shares in the United
States or Canada. This document is not aimed at persons
who are resident in the United States, Canada or any
province or territory thereof, where the
companies/securities are not authorised or registered for
distribution and where no prospectus has been filed with
any securities commission or regulatory authority. The
companies/securities may not be acquired or owned by,
or acquired with the assets of, an ERISA Plan.
31
EIIiH1122E/S-2607244-31/35
FOR PROFESSIONAL CLIENTS/QUALIFIED INVESTORS/QUALIFIED CLIENTS ONLY
Index Disclaimers
Bloomberg Finance L.P. and its affiliates (collectively,
“Bloomberg”) are not affiliated with BlackRock and do not
approve, endorse, review, or recommend iShares
Diversified Commodity Swap UCITS ETF. Bloomberg and
Bloomberg Commodity USD Total Return Index are
trademarks or service marks of Bloomberg Finance L.P.
and have been licensed to BlackRock. Bloomberg does
not guarantee the timeliness, accurateness, or
completeness of any data or information relating to the
Index.
The funds or securities referred to herein are not
sponsored, endorsed, or promoted by MSCI ESG
Research, Bloomberg, or Barclays, and MSCI ESG
Research, Bloomberg and Barclays bear no liability with
respect to any such funds or securities or any index on
which such funds or securities are based. The Prospectus
contains a more detailed description of the limited
relationship MSCI ESG Research, Bloomberg, and
Barclays have with BlackRock and any related funds.
The STOXX® Europe 600 Banks Index and the trademarks
used in the index name are the intellectual property of
STOXX Limited, Zurich, Switzerland and/or its licensors.
The index is used under license from STOXX. The
securities based on the index is in no way sponsored,
endorsed, sold or promoted by STOXX and/or its licensors
and neither STOXX nor its licensors shall have any liability
with respect thereto.
'FTSE®' is a trade mark jointly owned by the London Stock
Exchange plc and the Financial Times Limited (the 'FT')
and is used by FTSE International Limited ('FTSE') under
licence. The FTSE Global Core Infrastructure Index is
calculated by or on behalf of FTSE International Limited
('FTSE'). None of the Exchange, the FT nor FTSE sponsors,
endorses or promotes the iShares ETF nor is in any way
connected to the fund or accepts any liability in relation to
its issue, operation and trading. All copyright and
database rights within the index values and constituent
list vest in FTSE. BlackRock has obtained full licence from
FTSE to use such copyright and database rights in the
creation of this product.
J.P. Morgan provides financial, economic and investment
information to the financial community. J.P. Morgan
calculates and maintains the J.P. Morgan EMBISM Global
Core Index, J.P. Morgan Emerging Markets Bond Index
Plus, J.P. Morgan Emerging Markets Bond Index Global
and Emerging Markets Bond Index Global Diversified.
Security additions and deletions into the emerging
markets bond indexes do not in any way reflect an opinion
in the investment merits of the security.
Markit iBoxx is a registered trade mark of Markit Indices
Limited and has been licensed for use by BlackRock.
Markit Indices Limited does not approve, endorse or
recommend BlackRock or iShares plc. This product is not
sponsored, endorsed or sold by IIC and IIC makes no
representation regarding the suitability of investing in
this product.
iShares funds are not sponsored, endorsed, or
promoted by MSCI, and MSCI bears no liability with
respect to any such funds or any index on which such
funds are based. The Prospectus contains a more detailed
description of the limited relationship that MSCI has with
BlackRock and any related funds.
The Index is a product of S&P Dow Jones Indices LLC, a
division of S&P Global, or its affiliates (“SPDJI”) and has
been licensed for use by BlackRock. Standard & Poor’s®
and S&P® are registered trademarks of Standard & Poor’s
Financial Services LLC, a division of S&P Global (“S&P”);
Dow Jones® is a registered trademark of Dow Jones
Trademark Holdings LLC (“Dow Jones”); and these
trademarks have been licensed for use by SPDJI and
sublicensed for certain purposes by BlackRock. The
iShares ETFs are not sponsored, endorsed, sold or
promoted by SPDJI, Dow Jones, S&P, their respective
affiliates, and none of such parties make any
representation regarding the advisability of investing in
such product(s) nor do they have any liability for any
errors, omissions, or interruptions of the Index.
The ICE Index mentioned in this document is a service
mark of Interactive Data Pricing and Reference Data, LLC
or its affiliates (“Interactive Data”) and has been licensed
for use by BlackRock, Inc. in connection with the fund.
Neither BlackRock, Inc. nor the fund is sponsored,
endorsed, sold or promoted by Interactive Data.
Interactive Data makes no representations or warranties
regarding BlackRock, Inc. or the fund or the ability of the
fund to track the applicable Index. INTERACTIVE DATA
MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND
HEREBY EXPRESSLY DISCLAIMS ALL WARRANTIES OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR
PURPOSE WITH RESPECT TO THE ICE INDEX OR ANY
DATA INCLUDED THEREIN. IN NO EVENT SHALL
INTERACTIVE DATA HAVE ANY LIABILITY FOR ANY
SPECIAL, PUNITIVE, DIRECT, INDIRECT, OR
CONSEQUENTIAL DAMAGES (INCLUDING LOST
PROFITS) EVEN IF NOTIFIED OF THE POSSIBILITY OF
SUCH DAMAGES.
2023 EMEA Outlook Implementation Guide
32
EIIiH1122E/S-2607244-32/35
FOR PROFESSIONAL CLIENTS/QUALIFIED INVESTORS/QUALIFIED CLIENTS ONLY
This document is marketing material.
For distribution in the European Economic Area (EEA):
This material has been created for use by prospective
Professional Investors in Belgium, the Czech Republic,
Denmark, Finland, France, Germany, Greece, Iceland,
Ireland, Italy, Luxembourg, the Netherlands, Norway,
Poland, Portugal, Spain, and Sweden.
As at the date of this document, the Fund has been
notified, registered or approved (as the case may be and
howsoever described) in accordance with the local
law/regulations implementing the AIFMD for marketing
to professional investors into the above-mentioned
member state(s) of the EEA (each a “Member State”).The
fund may terminate marketing at any time. Investors
should understand all characteristics of the Fund’s
objective and read the Fund’s Private Placement
Memorandum before investing.
For Investors in Germany: Shares of the Fund may in
particular not be distributed or marketed in any way to
German retail or semi-professional investors if the Fund
is not admitted for distribution to these investor
categories by the Federal Financial Supervisory Authority
(Bundesanstalt für Finanzdienstleistungsaufsicht).
For Investors in the UK: In the UK this document is
directed only at persons who are professional clients or
eligible counterparties for the purposes of the Financial
Conduct Authority’s Conduct of Business Sourcebook.
The opportunity to invest in the Fund is only available to
such persons in the UK and this document must not be
relied or acted upon by any other persons in the UK.
For Investors in Switzerland: For Qualified Investors
only. This document is marketing material. This document
shall be exclusively made available to, and directed at,
qualified investors as defined in Article 10 (3) of the CISA
of 23 June 2006, as amended, at the exclusion of
qualified investors with an opting-out pursuant to Art. 5
(1) of the Swiss Federal Act on Financial Services
("FinSA"). For information on art. 8 / 9 Financial Services
Act (FinSA) and on your client segmentation under art. 4
FinSA, please see the following website:
www.blackrock.com/finsa.
The BlackRock Private Equity Impact Opportunities ELTIF
Fund is domiciled in Luxembourg. The Fund has not been
registered with the Swiss Financial Market Supervisory
Authority (FINMA). Representative in Switzerland is
BlackRock Asset Management Switzerland Limited,
Bahnhofstrasse 39, CH-8001 Zurich and the Paying
Agent in Switzerland is State Street Bank International
GmbH, München, Zweigniederlassung Zürich,
Beethovenstrasse 19, CH -8002 Zürich. The Fund’s
confidential Private Placement Memorandum and/or any
other offering materials and the annual and semi-annual
reports, if applicable, of the Fund/s are available free of
charge from the representative in Switzerland. Investors
should read the fund specific risks in the Prospectus and
any other offering material.
2023 EMEA Outlook Implementation Guide
Important Information about the BlackRock Private
Equity Impact Opportunities ELTIF Fund
Important Information - Potential investors should
take note of the following:
•
The Fund has a 10-year lifespan but this could
lengthen by a further two years. Consequently, this
product is illiquid and not suited to investors unwilling
or unable to commit capital for this period of time.
•
The Fund is intended to be marketed to certain retail
investors that are eligible investors as described in the
Fund documents.
•
Investors shall have no right to redeem their Shares
in the Fund before the end of the life of the Fund,
though Investors may freely transfer their Shares to
third parties meeting the Fund’s eligibility criteria.
Redemption shall be possible from the day following
the end of the life of the Fund.
•
No preferential treatment shall be granted to Investors
in the same share class of the Fund, though different
terms may attach to different share classes as
described in the Fund's offering documents.
•
Investors are obliged to make contributions to the
Fund in the full amount of their respective Capital
Commitments. Investors may also be required to
contribute additional payments (separate to their
Capital Commitments) as set out in the Fund
documents.
•
During the life of the Fund, distributions if any, shall
be made at the discretion of the General Partner on an
ad hoc basis in accordance with the Fund's offering
documents.
•
Investors should ensure that only a small proportion
of their overall investment portfolio should be
invested in an ELTIF such as the Fund.
•
The hedging policy which applies to the Fund is
described in Section “Risks Related to the Fund and its
Compartments’ Investment Strategies” of the
Memorandum. Financial derivative instruments may
only be used for the purposes of hedging risks
inherent to the other investments of the Compartment,
which may increase the risk profile of the Fund.
•
There are risks involved in investing in the Fund. These
are described in the Risk Section of this presentation
and in the Fund's offering documents.
We have classified this Fund as 6 out of 7, which is the
second highest risk class. This classification is not
guaranteed and may change over time and is not a
reliable indication of the future risk profile of the Fund.
The risk indicator assumes you keep the product for 10
years. You cannot cash in early but may be able to sell
your product. The actual risk can vary significantly if you
sell your product at an early stage and you may get back
less. You may not be able to sell your product easily.
33
EIIiH1122E/S-2607244-33/35
FOR PROFESSIONAL CLIENTS/QUALIFIED INVESTORS/QUALIFIED CLIENTS ONLY
Risk Factors. An investment in the Fund entails a
significant degree of risk and, therefore, should be
undertaken only by investors capable of evaluating the
risks of the Fund and bearing the risks that it represents.
Prospective Investors should carefully consider, among
others, the following factors in connection with a
purchase of Interests. The following list is not a complete
list of all risks involved in connection with an investment
in the Fund.
•
Restriction on withdrawal
•
Lack of available investments,
•
Concentration risk
•
Valuation risk
•
Environmental, Social and Governance (ESG) Risk
•
Private Equity
•
Co-Investment
For existing investors: You have received this document
because, according to our records, you are currently an
existing investor within the fund. If you are not an investor
in the named fund or you are not the intended recipient or
have received this document in error, please notify the
sender immediately and destroy the message in its
entirety (whether in electronic or hard copy format),
without disclosing its contents to anyone.
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 being made
available only incidentally. 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.
This document is for information purposes only and does
not constitute an offer or invitation to anyone to invest in
any BlackRock funds and has not been prepared in
connection with any such offer.
If you are an intermediary or third-party distributor, you
must only disseminate this material to other Professional
Investors as permitted in the above specified jurisdictions
and in accordance with applicable laws and regulations.
THE INFORMATION CONTAINED HEREIN, TOGETHER
WITH THE PERFORMANCE RESULTS PRESENTED, IS
PROPRIETARY IN NATURE AND HAS BEEN PROVIDED
TO YOU ON A CONFIDENTIAL BASIS, AND MAY NOT BE
REPRODUCED, COPIED OR DISTRIBUTED WITHOUT THE
PRIOR CONSENT OF BLACKROCK.
© 2022 BlackRock, Inc. All Rights reserved.
BLACKROCK, BLACKROCK SOLUTIONS, and iSHARES
are trademarks of BlackRock, Inc. or its subsidiaries in
the United States and elsewhere. All other trademarks
are those of their respective owners.
2023 EMEA Outlook Implementation Guide
34
EIIiH1122E/S-2607244-34/35
FOR PROFESSIONAL CLIENTS/QUALIFIED INVESTORS/QUALIFIED CLIENTS ONLY
Want to know more?
Finland
+46 (0) 8 505 726 00
Germany
+49 69 50 500 3199
Israel
+972 73 239 9820
Luxembourg
+35 228 290 400
Norway
+46 (0) 8 505 726 00
Spain
+34 917 88 94 00
Sweden
+46 (0) 8 505 726 00
Switzerland
+41 44 297 7373
UK
+44 020 7743 3000
blackrock.com
EIIiH1122E/S-2607244-35/35