BLACKROCK GLOBAL FUNDS (BGF)
DISTRIBUTING (S) SHARES
EXPLAINED
• Investment involves risk. Past performance is not indicative of future results. For details of the funds, their related fees, charges and risk factors, please refer to
respective funds’ prospectuses.
• Investors should not only base on this marketing material alone to make investment decision.
• The Fund may use derivatives to hedge market and currency risk and for efficient portfolio management. However, derivatives will not be extensively or primarily
used for investment purposes. In an adverse situation, the Fund may suffer significant losses from their derivatives usage for hedging and efficient portfolio
management.
• Certain shares of the Fund pay dividends gross of expenses or from capital at the Directors’ discretion. Paying dividends gross of expenses may result in more
income being available for distribution; however these shares may effectively pay dividends from capital. Dividends paid from capital may amount to a partial
return of an investor’s original investment or capital gains. All declared dividends result in an immediate reduction in the NAV price of the share class on the
ex-dividend date.
BlackRock offers Distributing (S) Shares (the “Shares”) on a selection of
Distributing (S) Shares offer: funds within its flagship BlackRock Global Funds (BGF) range. The
The intention to pay dividends of a Shares aim to provide investors with a stable monthly dividend per
reasonably consistent nature share, by smoothing income generated by a fund over time.
Regular (monthly) cash flows to Investors should be aware that the Shares pay dividends that are likely
investors, with the aim of stabilising to include a partial return of invested capital from time to time. Whilst
dividends per share compared to the Shares aim to reduce variability in monthly dividends per share,
investing in other Distributing Shares there are no guarantees that no guarantees that they will be successful
offered in BGF in doing so.
Distributing (S) Shares do not offer: The Shares may only be suitable for investors who seek to receive a
stable monthly dividend irrespective of the income generated by the
Any guaranteed dividends – the
Directors retain full discretion to alter fund over any single period, and are aware of and willing to accept risks
the dividend amount in any given to capital growth. They are not suitable for investors seeking
period guaranteed dividends or who are primarily looking to maximise total
Any capital protection – a part of the returns.
dividend may come from invested
assets. In extreme cases, the entire How do Distributing (S) Shares operate?
dividend may be paid from capital if a The Shares seek to pay investors a regular, stable dividend per share in
fund has zero distributable income for line with the income generated by investments held within the relevant
that period fund
High dividends – the emphasis is on
dividend per share sustainability, not The monthly dividend will be determined by a dedicated committee
high or enhanced dividends These dividends are expected to be set on a quarterly basis (i.e. for
the coming three months). HOWEVER, dividend levels may be revised
Key Considerations: at any time by the committee if deemed necessary (e.g. if market
In an effort to provide a more conditions change significantly enough to adversely impact the
consistent income, the dividends on relevant fund)
the Shares may be expected to
Dividends will be announced on the last business day of each month
include capital as monthly dividends
and paid within the following month
can be more than a fund’s income
Income will be paid gross of expenses. The Shares are also referred to with the suffix “6” (e.g. Class A6)
All fees and expenses will be
deducted from invested assets of the What is the impact on portfolio management of
relevant fund and may erode fund Distributing (S) Shares?
capital
There is no intention for the offering of Shares to prompt a change in
Partial or entire payment of dividends
the way that a fund is managed
from invested assets may reduce the
potential for long-term capital growth
of your investment or increase risk of Risk to Capital Growth
capital losses In order to maintain stability, the Shares may make distributions
Investors should be aware of any from capital as well as from income
impact to their personal taxation This may translate into higher dividends per share with the effect of
situation before investing in the reducing capital growth and increasing the risk of capital losses
Shares
Comparison of Share Classes
Other types of share classes available in the BlackRock Global Funds range include non-distributing and various
distributing classes. The key differences of the various share classes are set out below:
Share Share Paid Calculated Dividend Basis Gross/Net Stable
Class Expenses
Distributing (D) A1 Monthly Daily Income for current day Net* No
Distributing (M) A3 Monthly Monthly Income for preceding 1 month Net* No
Distributing (S) A6 Monthly Monthly Determined by Committee Gross Yes
(on the basis of gross income)
Distributing (R) A8 Monthly Monthly Determined by Committee Gross Yes
(on the basis of gross income and
interest rate differential)
Distributing (Q) A5 Quarterly Quarterly Income for preceding 3 months Net* No
Distributing (A) A4 Annually Annually Income for preceding 12 months Net* No
Accumulating A2 - - - - -
*unless otherwise indicated as paying dividends gross of expenses in a respective fund’s investment objective
This material is issued by BlackRock Asset Management North Asia Limited and has not been reviewed by the Securities and Futures Commission (SFC).
This material is for informational or educational purposes only and does not constitute a solicitation of any securities or BlackRock funds. Investment
involves risks. Past performance is not a guide to future performance and should not be the sole factor of consideration when selecting a product.
Therefore, the value of your investment and the income from it will vary and your initial investment amount cannot be guaranteed. Investors may not get
back the amount they invest. Changes in the rates of exchange between currencies may cause the value of investments to go up and down. Fluctuation
may be particularly marked in the case of a higher volatility fund and the value of an investment may fall suddenly and substantially. Levels and basis of
taxation may change from time to time. Investors should refer to the BlackRock Global Funds prospectus and Key Fact Statements for details, including
risk factors, before investing. BlackRock is a registered trademark of BlackRock, Inc. ©2014 BlackRock, Inc. All Rights Reserved. M-20141104-0875
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