Selecting a better valuation model to measure bubble level ...
BlackRock Greater Europe Investment Trust plc · meetings in 2016) Valuation based on several...
Transcript of BlackRock Greater Europe Investment Trust plc · meetings in 2016) Valuation based on several...
BlackRock Greater Europe Investment Trust plcStefan Gries, CFA, Director and Co-Portfolio Manager
Simon White, Managing Director, BlackRock Closed End Funds
MATERIAL IS CONFIDENTIAL, NOT AN OFFER TO THE PUBLIC AND THE MATERIAL IS NOT FOR DISTRIBUTION
FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS ONLY
13–17 November 2017
This material is only distributed to South African investors for information purposes and subject to the following restrictions:
(a) the South African investor is: a bank; a person whose ordinary business, or part of whose ordinary business, is to deal in securities (whether as principals or agents); the PublicInvestment Corporation (SOC) Limited; an authorised financial services provider; a financial institution; a wholly owned subsidiary of a bank, a financial services provider or financialinstitution acting as agent in the capacity of an authorised portfolio manager for a registered pension fund or as manager of a registered collective investment scheme; or a combinationof the abovementioned entities; or(b) the South African investor is a single addressee acting as principal who is willing to subscribe for BlackRock Greater Europe Investment Trust plc to the value of at least ZAR 1,000,000(one million Rand); or(c) this offer is a non-renounceable offer made only to South African investors who are existing holders of the BlackRock Greater Europe Investment Trust plc or persons related toexisting holders of the BlackRock Greater Europe Investment Trust plc.
Recipients who accept this offer warrant that they have obtained the relevant exchange control approval.
Please be advised that BlackRock Investment Management (UK) Limited is an authorised Financial Services provider with the SouthAfrican Financial Services Board, FSP No. 43288.
AE1017E-293694-875310
BlackRock Greater Europe Investment Trust plc South Africa Listing –
Opportunity and Rational
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BlackRock is committed to the South African Market:
• It set up the office in Cape Town in 2012
• For over two decades BlackRock has been marketing its global investment capabilities to the institutional
and intermediated investment community
• The FSB has Licensed BlackRock as an FSP (license number 43288) and has registered under the
CISCA act a number of ETFs and Index Mutual Funds
• BlackRock continues to focus on deepening relationships with the investment community in South Africa
The listing of BRGE on the JSE will:
• Give South African investors access to an actively managed listed vehicle of which we believe are the
best ideas listed European equities managed by BlackRock
• Give South African investors an entry point into the steady and ongoing economic recovery in Europe
• Allow South African investors to obtain European listed equity exposure without using offshore
allowances
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BlackRock at a glance
As of 30 September 2017. All figures are represented in USD.
• Established in 1988
• NYSE: BLK
• $5.97 trillion assets under management
• More than 13,500 employees
• More than 2,500 investment professionals
• Offices in over 34 countries
• 25 primary investment centers globally
• Clients in over 100 countries
• Over 800 iShares® ETFs Globally
• Through BlackRock Solutions, the Firm provides risk management and enterprise investment services for over 200 clients
• Financial Markets Advisory business managed or advised on over $8 trillion in asset and derivative portfolios
• Transition Management team partners with clients to save costs
and reduce risks when changing investment exposures
BlackRock facts $5.97 trillion managed across asset classes
Create a better financial future for our clients by building
the most respected investment and risk manager in the world
BlackRock Mission Statement
Assets as of 30 September 20171 Includes commodity and currency mandates
Active Equity 300 bn
Passive Equity2.8 tn
Alternatives1
130 bn
Active Fixed Income
797 bn
Passive Fixed Income
990 bn
Multi-Asset 457 bn
Cash Management
425 bn
Advisory2 bn
MATERIAL IS CONFIDENTIAL, NOT AN OFFER TO THE PUBLIC AND THE MATERIAL IS NOT FOR DISTRIBUTION
FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS ONLY 3AE1017E-293694-875310
BlackRock in South Africa
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BlackRock is committed to asset management in
South Africa, and it aims to achieve success in
partnership with clients across the region.
We have a long-term interest in maintaining a
strong South African presence so that we can
continue offering our local clients a comprehensive
range of innovative market-leading investment
solutions.
From active to passive products, our clients can
expect high-quality investment solutions tailored to
their specific objectives.
For more information on BlackRock please visit our
website: www.blackrock.com/za
BlackRock South Africa Team
Barbara VintcentHead of BlackRock South Africa
Khoabane PhoofoloBlackRock South Africa
Source: BlackRock, 30 September 2017
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5
BlackRock’s extensive platform helps investors deliver client returns
Scope and Breadth
• Deep market insights from local footprint
• Collaboration and debate through the
BlackRock Investment Institute (BII)
• Cross asset-class expertise globally
Scale
• Superior corporate access and research
• Trading infrastructure & expertise
• Access to market participants and clients
• Global Capital Markets capability
Talent
• Top leaders and investors in active equities
globally
• Developing talent for the future across
investing, data science, and global research
Innovation & Technology
• Insights and expertise on static factors
• “Big data” and information research focus
• Specialization in risk management globally and
enterprise Aladdin platform
What advantages does BlackRock bring to clients?
Active
Equities
Source: BlackRock, 30 September 2017
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Extensive coverage across European markets
BlackRock European Equity Team: Overview
Team AUM €36.2bn as at 30 September 2017
20 PM / sector analysts
2 graduates
6 product strategists
Highly Experienced, Rigorous Approach, Global Reach
All Fund Managers & analysts
conduct research
Team produces proprietary research,
not reliant on broker recommendations
What we believe are the ‘best ideas,’
delivered through team debate &
collaboration
Leverage BlackRock’s Global
resources
Bottom-up fundamental
investors with macro awareness
Building portfolios around high conviction ideas
Joe Williams
Product Strategist
Laurence Gallo
Product Strategist
Matt Williams
Product Strategist
Rebecca Inkster
Product Strategist
Aislinn Bunning
Product Strategist
Lucie Weigel
Product Strategist
Nigel Bolton
Head of European Equity Team,
PM
Alice Gaskell
PM/Analyst
Alister Hibbert
PM/Analyst
Andreas Zoellinger
PM/Analyst
Peter Hopkins
Analyst
Brian Hall
PM/Analyst
David Tovey
PM/Analyst
Divyang Patel
Analyst
Giles Rothbarth
PM/Analyst
Matthew Yates
Analyst
Michael Constantis
PM/Analyst
Simon Hunter
PM/Analyst
Stefan Gries
PM/Analyst
Tom Joy
Analyst
Barry Zeitoune
Analyst
Lance Enguehard
Analyst
Chris Sykes
Analyst
Alistair Ceurvorst
Analyst
6
Sarah Thomas
Analyst
Source: BlackRock, 30 September 2017.
Luca Manzi
Analyst
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How are we different?
High conviction approach
230 years of collective investment experience
7 PMs with over years of experience each15Tension and debate key to investment process
Multiple portfolio managers have freedom to invest but use world-class platform to aid investment process
Fundamental investment with macro awareness: key
for attempting to capture turning points
Structured process
7
Source: Blackrock, all data as at 30 September 2017. Left hand side: Illustration of research template. For illustrative purposes only.
FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS ONLY
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European Equity Team: Sector Responsibilities
* Denotes research pod leader. **Works in two pods.
Energy
Chemicals
Metals & Mining
Paper & Packaging
Utilities
I.T.
Telcos
Media
Pharma
Medtech
Luxury & Apparel
Food Producers
Beverages & Tobacco
Aerospace & Defence
Capital Goods
Construction & Housebuilders
Infrastructure
Support Services
Travel & Leisure
Airlines
Transport
Industrial Transportation
HPC
Autos
Retail &Food Retail
Alister Hibbert* Alice Gaskell* M. Constantis* Sarah Thomas* Stefan Gries*Brian Hall*A. Zoellinger*
Divyang Patel
Chris Sykes Luca Manzi
David Tovey Alistair CeurvorstTom Joy**Matthew Yates
Financials Commodities Infrastructure Healthcare ConsumerBusiness
Services
Capital
Investment
Giles Rothbarth Barry Zeitoune
Tom Joy**
8
Lance EnguehardAlex Dangoor
(graduate on rotation)
Simon Hunter
Peter Hopkins
Real Estate
Banks
Insurance
Speciality Financials
Marija Vukojevic(graduate on rotation)
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BlackRock European Equity Team: Investment Process Overview
Source: BlackRock – For illustration purposes only
In-Depth
Company
Analysis
Team Sector Analysts
Screening
External Research
Macro/Thematic
Sophisticated risk
systems to aid risk
awareness and
portfolio construction
Rating 1-5Research
Pipeline
Structured, disciplined research framework
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In-Depth Company Analysis: Defining the Opportunity
Clear & timely conclusions
Stock rating system (1 to 5)
Specific price targets
(12 month horizon)
Rigorous, Efficient, Collaborative
Efficient, automated
research template
Diligent approach
covering multiple
aspects of investment
case
Diversity of viewpoint
key to team debate
Direct feed to external
sources
Automated download of historical
financials
Clear view of BlackRock European
Team vs Consensus
Exceptional
access to
management (over
1000 company
meetings in 2016)
Valuation based
on several
perspectives
10
Source: BlackRock. Current process for selecting investments in the fund’s portfolio in accordance with its stated investment objective and policies. Process subject to change based on
market conditions, portfolio manager’s opinion and other factors. For illustrative purposes only. Reference to the name of each company mentioned is merely explaining the investment
strategy and should not be construed as investment advice or investment recommendations of those companies.
FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS ONLY
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Portfolio Construction
Diverse, deliberate and scaled positioning
Sample ex-ante risk report
Powerful interactive Risk & Portfolio Management
Systems
Integrated portfolio & risk systems
Pre-trade risk modelling & compliance checking
Connectivity to trading platform
Live attribution analysis
3 broad guidelines to help ensure effective diversification
of risk
Maximise stock-specific risk
Minimise unintended risks- ‘no blind spots’
Maintain diverse range of exposures
11
Source: BlackRock, Green Package, Impact. Current process for selecting investments in the fund’s portfolio in accordance with its stated investment objective and policies. Process
subject to change based on market conditions, portfolio manager’s opinion and other factors. For illustrative purposes only.
FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS ONLY
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A globally synchronised recovery
12FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS ONLY
Source: BlackRock BII, 30 September 2017.
… with continued inflection in the Euro zone
Source: Credit Suisse, 30 September 2017
Strength of global lead indicators is broad-based…
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010 2012 2014 2016
% s
hare
Share of countries with PMI new orders > 52, average mfg & svs
Improving confidence, growth and lower inflation point to a continued positive stance for equities
0
20
40
60
80
100
120
140
-4
-3
-2
-1
0
1
2
Jan-0
0
Feb
-01
Ma
r-0
2
Apr-
03
Ma
y-0
4
Jun-0
5
Jul-0
6
Aug-0
7
Sep-0
8
Oct-
09
No
v-1
0
De
c-1
1
Jan-1
3
Feb
-14
Ma
r-1
5
Apr-
16
Ma
y-1
7
Ind
ex
Ind
ex
Business Climate Indicator (lhs)
Economic Confidence Indicator (rhs)
MATERIAL IS CONFIDENTIAL, NOT AN OFFER TO THE PUBLIC AND THE MATERIAL IS NOT FOR DISTRIBUTION AE1017E-293694-875310
European earnings reflecting global improvement…
Earnings improvements providing a stock picker’s
market
Realised results and expectations have moved up over the year
Quarterly Eurozone EPS growth since Q1 2012
Source: Goldman Sachs, Euro Stoxx Index, September 2017. Index used for
representation only, you cannot invest in an index
Source: JPMorgan, 7 August 2017, based on euro area company earnings
reporting.
13
16%
11%
-22%
-19%
-12%
-14%
8%
-33%
-4%
1%1%
12%
-10%
8%9%
4%
13%
18%
4%
-5%
-14%
-4%
1%
12%
23%
11%
-45%
-35%
-25%
-15%
-5%
5%
15%
25%
1Q '11 1Q '12 1Q '13 1Q '14 1Q '15 1Q '16 1Q '17
EP
S G
row
th %
EPS Growth, % y/y
FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS ONLY
-60%
-40%
-20%
0%
20%
40%
60%
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17 Y
TD
Retu
rn (
%)
Valuation change Earnings change
MATERIAL IS CONFIDENTIAL, NOT AN OFFER TO THE PUBLIC AND THE MATERIAL IS NOT FOR DISTRIBUTION AE1017E-293694-875310
Fading political risk in the Eurozone helps sentiment…
14FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS ONLY
Source: Bloomberg, JPMorgan, 31 July 2017. Data representation and based on the 25 biggest ETF's with a mandate to invest in a particular region. Data start point 1 Jan 2016
Significant outflows from the region begin to turn…
Source: PEW Research centre, Spring 2017 Global Attitudes Survey, Q12f. Image Source: Angela Merkel – www.theleader.info 30 June 2017, Emmanuel Macron –Associated Press 30 June 2017
Favourable view of the EU
-15%
-5%
5%
15%
25%
35%
45%
55%
Jan 16 Apr 16 Jul 16 Oct 16 Jan 17 Apr 17 Jul 17
Flo
w a
s a
% o
f A
UM
US ETF flow % of AUM UK Eurozone Japan EM
% in f
avour
of E
U
…and is starting to drive flows back into the asset class
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0.6
0.8
1.0
1.2
1.4
1.6
1.8
2.0
Q1 2
009
Q1 2
010
Q1 2
011
Q1 2
012
Q1 2
013
Q1 2
014
Q1 2
015
Q1 2
016
Q1 2
017
Q1 2
018
Q1 2
019
Infl
ati
on
fo
recast
%Central bank support in Europe…
15
ECB consumer price index inflation ECB inflation forecasts through time
…likely to persist as overly simplistic models fail to capture real change
Core
inflation
Previous
ECB
projections
Latest ECB
projection
Source: BlackRock, ECB, 30 September 2017.
FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS ONLY
Source: BlackRock, Thomson Reuters Datastream, 15 September 2017.
1.5
1.2
-1.0
0.0
1.0
2.0
3.0
4.0
5.0
Jan 0
2
De
c 0
2
No
v 0
3
Oct 04
Sep 0
5
Aug 0
6
Jul 07
Jun 0
8
Ma
y 0
9
Apr
10
Ma
r 11
Feb
12
Jan 1
3
De
c 1
3
No
v 1
4
Oct 15
Sep 1
6
Aug 1
7
Y/Y
% i
nfl
ati
on
CPI CPI ex Food and Energy Target
MATERIAL IS CONFIDENTIAL, NOT AN OFFER TO THE PUBLIC AND THE MATERIAL IS NOT FOR DISTRIBUTION AE1017E-293694-875310
Valuations: a relative game?
Relative valuations remain supportiveSource: Chart 1: Morgan Stanley, 31 July 2017, IBES estimates on MSCI Europe constituents Chart 2: Source: Credit Suisse- shows valuation discount of Europe versus US using Shiller PE. 31 July 2017. Chart 3: Source: Barclays, 31 August 2017 based on realised market yields
MSCI Europe: 12 month forward price to
earningsEquity, Sovereign and credit yieldsShiller P/E versus US Equities
6
8
10
12
14
16
18
20
22
24
26
889092949698000204060810121416
Price t
o E
arn
ings
N12M PE Median
15.1
16
5
10
15
20
25
30
35
40
45
1985 1989 1994 1998 2003 2008 2012 2017
Shill
er
P/E
US: Shiller's P/E = 30.5x
Europe: Shiller's P/E = 14.8x
FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS ONLY
MATERIAL IS CONFIDENTIAL, NOT AN OFFER TO THE PUBLIC AND THE MATERIAL IS NOT FOR DISTRIBUTION
-1
0
1
2
3
4
5
6
7
8
9
19
99
20
01
20
03
20
05
20
07
20
09
20
11
20
13
20
15
20
17
Yie
ld (
%)
Bund 10yr yieldIboxx Euro Corp bond yieldMSCI Europe: Dividend Yield
AE1017E-293694-875310
Eastern Europe – turning tide
17FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS ONLY
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
11%
12%
13%
14%
EM capex to sales (%) EM free cash flow yield (%, rhs)
Cash flow inflection in emerging Europe
Source chart 1: BlackRock, Bloomberg, as at end June 2017 based on IBES consensus forward estimates on each index. Chart 2 Source: Credit Suisse HOLT, Credit Suisse research,
as of end March 2017. EM represented by the MSCI EM index. It is not possible to invest directly in an index. There is no guarantee that any forecasts made will come to pass.
3.0
6.0
9.0
12.0
15.0
18.0
21.0
Jan 0
7
Jan 0
8
Jan 0
9
Jan 1
0
Jan 1
1
Jan 1
2
Jan 1
3
Jan 1
4
Jan 1
5
Jan 1
6
Jan 1
7
Fo
rward
P/E
Rati
o
MSCI World MSCI Emerging Markets
MSCI Emerging Europe
Emerging Europe offers value relatvie
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BlackRock Greater Europe Investment Trust plc – Key Features
Objective: to achieve long term capital growth
• Guideline of c.30-70 European securities –
portfolio run more concentrated at 35-40 stocks;
investable universe >2,000 stocks
• All Cap capability
• Ability to invest in developing Europe (max 25%)
• Ability to invest in unquoted securities (max 5%)
• Gearing (max 15% of NAV)
• Discount managed via bi-annual tender
mechanism*
• Fund primary listing and management in the UK
Fee: 0.85%, ongoing charge 1.10% (31/08/2017)
A performance orientated approach to European equities
Source: BlackRock as at 30 September 2017. *At the discretion of the Board
18
BlackRock Greater Europe Investment
Trust
Investment
RegionEurope with Emerging Europe
Manager Stefan Gries, Sam Vecht
Vehicle
(Domicile)Investment Trust
Benchmark FTSE World Europe ex UK
LARGE
MID
SMALL
Style Flexible
Ma
rke
t C
ap
itali
sa
tio
n
30-70
shares
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Primary investment criteria we look for
Aiming to
deliver the
best ideas
from the
European
team
Quality management
with clearly defined
strategy and strong track
record in value creation
High and
predictable return on
capital and strong free
cash flow conversion
Investment in growth –
options to deploy cash in
areas of high and
sustainable returns
Unique aspect – e.g. a
product, brand or contract
structure which shields a
business and allows
sustainable returns
Focus on sustainable cash returns and unique franchises
19
Source: BlackRock – for illustrative purposes only
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BlackRock Greater Europe Investment Trust plc - Performance
20FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS ONLY
Cumulative share price and NAV return 3 year stock attribution
Stock
Portfolio
Total
Return
Average
Active
Weight
Total Effect
Adidas 118.7% 0.5% 2.3%
Straumann 167.1% 1.4% 2.0%
Ryanair 73.2% 1.3% 2.0%
Sberbank
Rossii129.2% 1.5% 1.8%
Lonza 134.2% 1.3% 1.6%
Stock
Portfolio
Total
Return
Average
Active
Weight
Total Effect
Turkiye Halk
Bankasi-38.1% 1.1% -1.7%
Bank of
Ireland-17.1% 1.2% -1.2%
Anheuser-
busch Inbev-10.4% -0.7% -1.1%
Ahold
Delhaize -11.3% 0.7% -1.0%
Luxoft 3.1% 0.8% -1.0%
Source: BlackRock, Bloomberg, 30 September 2017. Total return GBP, undiluted NAV, net of expenses. Past performance is not a reliable indicator of future results and should not be the
sole factor of consideration when selecting a product Please also add the following when displaying share price and NAV performance: Net Asset Value (NAV) performance is not the
same as share price performance, and shareholders may realise returns that are lower or higher than NAV performance. Returns stated in GBP The return of your investment may
increase or decrease as a result of currency fluctuations. Reference to the names of each company mentioned in this communications is merely for explaining the investment strategy, and
should not be construed as investment advice or investment recommendation of those companies.
MATERIAL IS CONFIDENTIAL, NOT AN OFFER TO THE PUBLIC AND THE MATERIAL IS NOT FOR DISTRIBUTION
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
-60
-40
-20
0
20
40
60
80
100
120
140
160
Fe
b-0
8
Au
g-0
8
Fe
b-0
9
Au
g-0
9
Fe
b-1
0
Au
g-1
0
Fe
b-1
1
Au
g-1
1
Fe
b-1
2
Au
g-1
2
Fe
b-1
3
Au
g-1
3
Fe
b-1
4
Au
g-1
4
Fe
b-1
5
Au
g-1
5
Fe
b-1
6
Au
g-1
6
Fe
b-1
7
Au
g-1
7
NA
V (
£)
Share
Cum
ula
tive R
etu
rn
FTSE World Europe ex UK BRGE Share Price NAV
AE1017E-293694-875310
BlackRock Greater Europe Investment Trust plc:
Active sector weight changes
Source: BlackRock. Green Package , 30 September 2016 – 30 September 2017. Weightings as of date shown and not necessarily represent current or future portfolio holdings.
7.2
%
4.2
% 6.3
%
-3.8
%
-4.3
%
-1.1
%
-2.4
%
-3.8
% -1.3
%
-0.3
%
9.8
%
2.9
%
8.2
%
-7.0
% -4.6
%
-1.3
%
-2.9
%
-3.6
% -1.1
%
-1.5
%
12
.4%
3.6
% 5.0
%
-4.3
%
-3.1
% -1.2
%
-1.0
%
-3.7
%
-3.2
%
-2.8
%
7.3
%
7.8
%
5.6
%
3.0
%
3.1
%
-1.2
%
-0.5
%
-3.8
%
-8.4
%
-7.4
%
15
.5%
8.8
%
7.6
%
5.8
%
0.5
%
-3.7
%
-3.8
%
-4.0
%
-6.0
%
-15
.6%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
Sep-16 Dec-16 Mar-17 Jun-17 Sep-17
21
Sector positions relative to FTSE World Europe ex UK as at 30 September 2017
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Areas of Conviction
22
EU/US Construction & Infrastructure
EM Consumer
MedTech
Selected Banks
• Positive contracting trends in domestic Europe supporting top line acceleration
• Tailwinds from domestic and global policy towards infrastructure
• Inflection in Emerging Market growth providing support for luxury retailers’ revenues
• Selective luxury companies exposed to these end markets have true pricing power
• Preference for MedTech over large-cap Pharma
• Strong earnings growth in select MedTech names which we expect to persist over multiple years
• Identifying challenger banks in favourable markets
• Remain underweight eurozone banks where significant pressures remain for NII
Source: BlackRock, Image source: company websites 30 September 2017. Reference to the names of each company mentioned in this communications is merely for explaining the
investment strategy, and should not be construed as investment advice or investment recommendation of those companies.
FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS ONLY
MATERIAL IS CONFIDENTIAL, NOT AN OFFER TO THE PUBLIC AND THE MATERIAL IS NOT FOR DISTRIBUTION AE1017E-293694-875310
Stock opportunities in EU construction – Eiffage
23
Healthy order books with further tailwinds from potential Government reform and spending
10,000
10,500
11,000
11,500
12,000
12,500
Q114
Q214
Q314
Q414
Q115
Q215
Q315
Q415
Q116
Q216
Q316
Q416
Q117
Ord
ers
(€
m)
12-mth trailing order intake
12-mth trailing Contracting revenues exc. R.E.
Source: Exane BNP Paribas, as at 25 July 2017 based on company data since January 2014. Reference to the names of each company mentioned in this communications
is merely for explaining the investment strategy, and should not be construed as investment advice or investment recommendation of those companies.
Contracting orders pointing to further top line accelerationInfrastructure - robust book-to-bill ratio supporting revenues
Book-to-bill >1x
3,000
3,500
4,000
4,500
5,000
5,500
Q114
Q214
Q314
Q414
Q115
Q215
Q315
Q415
Q116
Q216
Q316
Q416
Q117
Ord
ers
(€
m)
Order intake Revenues incl. BPL & Metal
Revenues exc. BPL
FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS ONLY
MATERIAL IS CONFIDENTIAL, NOT AN OFFER TO THE PUBLIC AND THE MATERIAL IS NOT FOR DISTRIBUTION AE1017E-293694-875310
Europe's leading luxury brands have benefitted from turn in Emerging
Markets
24
Identifying strong brands and superior positioning in growing end markets
-20
-10
0
10
20
30
40
50
Org
anic
gro
wth
(%
)
Gucci LVMH FLG Burberry
Prada Hermes
Accelerating organic growth at Gucci Remy Cointreau: strong organic growth and margin expansion
56
58
60
62
64
66
68
-15
-10
-5
0
5
10
15
20
25
30
March12
March13
March14
March15
March16
March17
Gro
ss M
arg
in (
%)
Org
anic
gro
wth
(%
)
Cognac organic growth (LHS)
Group Gross Margin (RHS)
Source: Bloomberg, BlackRock as at 1 August 2017, data from 1 Jan 2010 Source: Bloomberg, BlackRock, 1 August 2017, company data from January 2012
FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS ONLY
Reference to the names of each company mentioned in this communications is merely for explaining the investment strategy, and should not be construed as investment advice or
investment recommendation of those companies.
MATERIAL IS CONFIDENTIAL, NOT AN OFFER TO THE PUBLIC AND THE MATERIAL IS NOT FOR DISTRIBUTION AE1017E-293694-875310
Stock opportunities in MedTech – Straumann
25
(8%)
(4%)
0%
4%
8%
12%
16%
Q1
10
Q2
10
Q3
10
Q4
10
Q1
11
Q2
11
Q3
11
Q4
11
Q1
12
Q2
12
Q3
12
Q4
12
Q1
13
Q2
13
Q3
13
Q4
13
Q1
14
Q2
14
Q3
14
Q4
14
Q1
15
Q2
15
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Org
an
ic g
row
th (
%)
Straumann Sector
We see a significant growth opportunity, which is underestimated by the market in outer years
Organic sales growth outpacing competitors Market share gains to drive high growth in high margin areas
Source: Exane BNP Paribas, 3 August 2017, company and market data since Jan 2010 Source: Straumann FY16 results presentation, February 2017
Combined implant market US & Germany (c. 3.2m implants)
FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS ONLY
Reference to the names of each company mentioned in this communications is merely for explaining the investment strategy, and should not be construed as investment advice or
investment recommendation of those companies.
MATERIAL IS CONFIDENTIAL, NOT AN OFFER TO THE PUBLIC AND THE MATERIAL IS NOT FOR DISTRIBUTION
- Dental implants
AE1017E-293694-875310
European Banks – reasons to be selective
26
75
80
85
90
95
100
105
Jan
-10
Ma
y-1
0
Se
p-1
0
Jan
-11
Ma
y-1
1
Se
p-1
1
Jan
-12
Ma
y-1
2
Se
p-1
2
Jan
-13
Ma
y-1
3
Se
p-1
3
Jan
-14
Ma
y-1
4
Se
p-1
4
Jan
-15
Ma
y-1
5
Se
p-1
5
Jan
-16
Ma
y-1
6
Se
p-1
6
Jan
-17
Ma
y-1
7
Ind
ex
Margin Loans
Eurozone banks have continued to see margins fall…
We see selective opportunities in consolidated markets for well positioned players
… but Danske’s margins show a different picture
-600
-400
-200
0
200
400
600
800
1000
1200
1400
4Q
10
4Q
11
4Q
12
4Q
13
4Q
14
4Q
15
4Q
16
DK
K m
Margin Loans
Source: Deutsche Bank, 31 July 2017, data from January 2010 covering household and corporate loans Source: Barclays, 31 July 2017 data from September 2010
covering household and corporate loans
FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS ONLY
Reference to the names of each company mentioned in this communications is merely for explaining the investment strategy, and should not be construed as investment advice or
investment recommendation of those companies.
MATERIAL IS CONFIDENTIAL, NOT AN OFFER TO THE PUBLIC AND THE MATERIAL IS NOT FOR DISTRIBUTION AE1017E-293694-875310
27
BlackRock Greater Europe Investment Trust plc: Active stock weights
3.9%3.7%
3.5% 3.5% 3.5%3.3% 3.3% 3.2% 3.2% 3.2%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%LO
NZ
A
FR
ES
EN
IUS
ME
DIC
AL
CA
RE D
SV
AS
ML
WA
RT
SIL
A
KE
RIN
G
UN
ILE
VE
R
SA
P
RE
LX
RIC
HE
MO
NT
% N
AV
Source: BlackRock, Weightings as of date shown and not necessarily represent current or future portfolio holdings.
Reference to the names of each company mentioned in this communications is merely for explaining the investment strategy, and should not be construed as investment advice or investment
recommendation of those companies.
Largest active stock weights as at 30 September 2017
FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS ONLY
Diversified stream of earnings and cash flows across top holdings
MATERIAL IS CONFIDENTIAL, NOT AN OFFER TO THE PUBLIC AND THE MATERIAL IS NOT FOR DISTRIBUTION AE1017E-293694-875310
Executive Summary
28FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS ONLY
• Blackrock is committed to South Africa with an aim to building business for the long-term
• JSE secondary listing of BlackRock Greater Europe Investment Trust plc gives local investors access to
an actively managed and concentrated portfolio of Europe’s leading businesses
• It offers exposure to highly experienced stock pickers with a rigorous investment process that are
supported by what we believe is one of the best resourced equity platforms in the market
• Europe as a region is showing a strong recovery in both its growth and reform agenda
MATERIAL IS CONFIDENTIAL, NOT AN OFFER TO THE PUBLIC AND THE MATERIAL IS NOT FOR DISTRIBUTION AE1017E-293694-875310
Appendix
MATERIAL IS CONFIDENTIAL, NOT AN OFFER TO THE PUBLIC AND THE MATERIAL IS NOT FOR DISTRIBUTION AE1017E-293694-875310
Portfolio Manager Biographies
30FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS ONLY
Stefan Gries
Stefan Gries, CFA, Director and portfolio manager, is a member of BlackRock's European
Equity team and the co-portfolio manager of the European Absolute Return Strategy,
Continental ex UK strategies and the BlackRock Greater Europe Investment Trust plc. In
addition he is responsible for covering the business services sector on behalf of the team. Mr.
Gries joined BlackRock in 2008 from Scottish Widows Investment Partnership (SWIP), where he
was a research analyst and portfolio assistant with the European Equity team. Mr. Gries began
his career with SWIP in 2005.
Mr. Gries earned an MA degree, with honours, in economics and Spanish from the University of
St. Andrews in 2005. He is also a CFA charterholder.
Sam Vecht, CFA, Managing director and portfolio manager, is Head of the Emerging Europe &
Frontiers team within the Fundamental Active Equity division of BlackRock's Active Equities
Group. He is responsible for managing long-only and long/short portfolios in both Emerging and
Frontier markets.
Mr. Vecht's service with the firm dates back to 2000, including his years with Merrill Lynch
Investment Managers (MLIM), which merged with BlackRock in 2006.
Mr. Vecht earned a BSc degree, with honours, in international relations and history from the
London School of Economics.
Sam Vecht
MATERIAL IS CONFIDENTIAL, NOT AN OFFER TO THE PUBLIC AND THE MATERIAL IS NOT FOR DISTRIBUTION AE1017E-293694-875310
The Board and Key Shareholders
Eric SandersonChairman, Appointed November 2016, is a chartered accountant and a banker and was chief executive of British Linen Bank from 1989 to 1997 and a member of the management board of Bank ofScotland in his role as head of group treasury operations from 1997 to 1999. He was formerly Audit and Management Engagement Committee Chairman for the BlackRock Greater EuropeInvestment Trust plc, chairman of MyTravel Group PLC, MWB Group Holdings and Dunedin Fund Managers Limited. He is presently chairman of Schroder UK Mid Cap Fund plc.
Carol FergusonAppointed June 2004, is a qualified accountant and has over twenty five years’ experience in the investment and financial services industry. She is also a non-executive director of Standard Life UKSmaller Companies Trust plc and Chairman of Invesco Asia Trust plc. She is also on the board of Vernalis plc. She will retire from the Board following the Annual General Meeting to be held on 29November 2017.
Davina CurlingAppointed December 2011, has over 25 years’ experience of investment management and was managing director and head of Pan European Equities at Russell Investments. Prior to this she washead of European Equities at F&C, ISIS, Royal & Sun Alliance and Nikko Capital Management (UK). She is also a non-executive director of Invesco Income Growth Trust plc and a member of the StJames’s Place Wealth Management Investment Committee.
Peter BaxterAppointed April 2015, has 30 years’ experience in the investment management industry. He was chief executive of Old Mutual Asset Managers (UK) and previously worked for Schroders and HillSamuel in a variety of investment strategy roles. He is a member of the Board of Trust for London, where he chairs the investment committee, and a member of the Financial Reporting Council’sConduct Committee.
Paola SubacchiAppointed July 2017, is an economist, writer and commentator on the functioning and governance of the international financial and monetary system. She is a senior fellow at Chatham House (TheRoyal Institute of International Affairs) in London, a visiting professor at the University of Bologna, and a non-executive director of Scottish Mortgage Investment Trust PLC. An Italian national, shestudied at Universitá Bocconi in Milan and at the University of Oxford.
Board - biographies
BlackRock Investment Management Saving Schemes (14.5%)Hargreaves Lansdown (8.3%)Alliance Trust Savings (5.3%)Charles Stanley (4.1%)1607 Capital Partners (3.7%)Brewin Dolphin (2.7%)Barclays Stockbrokers (2.4%)Legal & General IM (2.2%)Rathbones (2.2%)Other (54.6%)
Key Shareholders – 30 September 2017
FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS ONLY 31
MATERIAL IS CONFIDENTIAL, NOT AN OFFER TO THE PUBLIC AND THE MATERIAL IS NOT FOR DISTRIBUTION
Shareholders represented may not necessarily account for entire respective holding allocation, but allocations via underlying platforms
AE1017E-293694-875310
BlackRock Greater Europe Investment Trust plc:
Absolute country and market cap weights and active currency weights
Source: BlackRock. Weightings as of date shown and not necessarily represent current or future portfolio holdings.
16.5% 16.1%13.7% 12.8% 12.3%
8.9%
5.7% 4.7%3.6% 3.3% 3.0%
1.7% 1.7% 1.1%
0%
5%
10%
15%
20%S
witzerl
and
Fra
nce
De
nm
ark
Germ
any
Ne
therl
and
s
Sw
ede
n
Belg
ium
Ru
ssia
nF
ed
era
tion
Fin
land
Spain
Irela
nd
Gre
ece
Isra
el
Ukra
ine
% N
AV
32
Absolute country positions as at 30 September 2017
FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS ONLY
Allocation resultant of bottom-up stock specific ideas
Active currency weights as at 30 September 2017
9.9%7.5%
2.6%
-0.1%-0.3%-0.8%-1.0%-1.1%-1.4%
-10.3%-15%
-10%
-5%
0%
5%
10%
15%
DKK USD SEK CZK HUF TRY PLN CHF NOK EUR
% N
AV
Active Weight %
Absolute market cap weights as at 30 September 2017
-10%
0%
10%
20%
30%
40%
50%
60%
< £2bn £2-£5bn £5-£10bn £10-£25bn >£25bn
% N
AV
% NAV Active %
MATERIAL IS CONFIDENTIAL, NOT AN OFFER TO THE PUBLIC AND THE MATERIAL IS NOT FOR DISTRIBUTION AE1017E-293694-875310
BlackRock Greater Europe Investment Trust plc – Gearing
Inception to 30 September 2017
33
-10.0
-5.0
0.0
5.0
10.0
15.0
03
/01
/200
6
31
/03
/200
6
23
/06
/200
6
15
/09
/200
6
08
/12
/200
6
02
/03
/200
7
25
/05
/200
7
17
/08
/200
7
11
/9/0
7
2/1
/08
4/2
5/0
8
7/1
8/0
8
10
/10
/08
1/2
/09
3/2
7/0
9
6/1
9/0
9
9/1
1/0
9
11
/27
/200
9
12
/2/1
0
4/2
9/1
0
7/9
/10
10
/1/1
0
12
/17
/10
2/2
8/1
1
5/2
0/1
1
8/1
2/1
1
11
/4/1
1
1/2
7/1
2
4/2
0/1
2
7/1
3/1
2
10
/5/1
2
12
/21
/12
3/8
/13
5/3
0/1
3
8/1
6/2
013
10
/31
/201
3
1/1
0/2
014
3/3
1/2
014
6/2
0/2
014
08
/29
/201
4
11
/14
/201
4
1/3
0/2
015
4/1
7/2
015
3/7
/15
9/2
5/2
015
12
/04
/201
5
2/2
6/2
016
6/1
0/2
016
8/3
1/2
016
07
/12
/201
6
28
/02
/201
7
19
/05
/201
7
11
/08
/201
7
%
Gearing
Source: BlackRock, as at 30 September 2017. Gearing permissible up to 15%.
FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS ONLY
Utilising full gearing capacity opportunistically
MATERIAL IS CONFIDENTIAL, NOT AN OFFER TO THE PUBLIC AND THE MATERIAL IS NOT FOR DISTRIBUTION AE1017E-293694-875310
BlackRock Greater Europe Investment Trust plc:
DM/EM Exposure through time
34
92
.4
92
.9
93
.4
91
.7
92
.0
93
.4
91
.3
91
.4
92
.3
92
.4
93
.1
91
.9
92
.8
90
.9
92
.3
93
.0
92
.9
93
.2
94
.0
93
.7
94
.0
94
.5
94
.5
94
.4
94
.8
93
.9
95
.1
95
.5
94
.9
94
.1
93
.9
93
.2
92
.7
92
.6
93
.2
93
.0
93
.7
91
.7
91
.8
91
.7
91
.4
91
.2
91
.7
91
.3
90
.3
91
.6
90
.6
89
.4
85
.2
89
.0
92
.5
92
.9
7.6
7.1
6.6
8.3
8.0 6.6
8.7
8.6 7.7
7.6 6.9
8.1 7.2
9.1 7.7 7.0
7.1
6.8 6.0
6.3
6.0
5.5
5.5
5.6
5.2
6.1 4.9
4.6 5.1
5.9
6.1
6.8
7.3
7.4 6.8
7.0 6.3
8.3
8.2
8.3
8.6
8.8
8.3
8.7
9.7 8.4
9.4
10
.6
14
.8
11
.0 7.6
7.1
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Jun
-13
Jul-
13
Au
g-1
3
Se
p-1
3
Oct-
13
Nov-1
3
Dec-1
3
Jan
-14
Fe
b-1
4
Ma
r-1
4
Ap
r-14
Ma
y-1
4
Jun
-14
Jul-
14
Au
g-1
4
Se
p-1
4
Oct-
14
Nov-1
4
Dec-1
4
Jan
-15
Fe
b-1
5
Ma
r-1
5
Ap
r-15
Ma
y-1
5
Jun
-15
Jul-
15
Au
g-1
5
Se
p-1
5
Oct-
15
Nov-1
5
Dec-1
5
Jan
-16
Fe
b-1
6
Ma
r-1
6
Ap
r-16
Ma
y-1
6
Jun
-16
Jul-
16
Au
g-1
6
Se
p-1
6
Oct-
16
Nov-1
6
Dec-1
6
Jan
-17
Fe
b-1
7
Ma
r-1
7
Ap
r-17
Ma
y-1
7
Jun
-17
Jul-
17
Au
g-1
7
Se
p-1
7
Developed Emerging
% N
AV
Source: BlackRock as at 30 September 2017. 2017 data from 30 June 2013
FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS ONLY
MATERIAL IS CONFIDENTIAL, NOT AN OFFER TO THE PUBLIC AND THE MATERIAL IS NOT FOR DISTRIBUTION AE1017E-293694-875310
Active Management of Discount
35FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS ONLY
Share price premium/discount to NAV (including income) over three years (%)
0
10
20
30
40
50
60
20
11
20
12
20
13
20
14
20
15
20
16
20
17
Costs
/pro
ceeds (
£m
)
Repurchases Allotments
Share buyback – repurchases and allotments
Source: BlackRock, Edison Research 30 September 2017
MATERIAL IS CONFIDENTIAL, NOT AN OFFER TO THE PUBLIC AND THE MATERIAL IS NOT FOR DISTRIBUTION
-12
-10
-8
-6
-4
-2
0
2
4
AE1017E-293694-875310
BlackRock Greater Europe Investment Trust plc Ongoing charges and
expenses
36FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS ONLY
Expenses
Year ended
30-Sep-17
£ '000
Total investment management fee 2,573 0.86%
Custody fees 38 0.01%
Depositary fees 41 0.01%
Audit fees 24 0.01%
Registrars' fees 75 0.03%
Directors’ emoluments 117 0.04%
Marketing fees 90 0.03%
Other administration costs 335 0.11%
Total 3,293 1.10%
Average net assets for the year 299,483,483
Ongoing charges 1.10%
MATERIAL IS CONFIDENTIAL, NOT AN OFFER TO THE PUBLIC AND THE MATERIAL IS NOT FOR DISTRIBUTION
Source: BlackRock, company filings full year 2017. For illustrative purposes only and subject to change
AE1017E-293694-875310
Active selection versus passive allocation
37FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS ONLY
Stoxx 50 Index composition
Financials24.10%
18.80%
13.92%
8.69%
7.46%
7.22%
6.05% Oil & Gas
5.26% Utilities
5.13% Telecoms3.37%
Financials Consumer Goods Industrials Basic Materials Health Care
Technology Oil & Gas Utilities Telecommunications Consumer Services
E.g. Total (4.5% of index):
• Minimal exploration
success in last 10 years
leaves portfolio empty –
may require riskier
acquisition
• Little room on balance
sheet – has used off
balance sheet project
finance to improve debt
metrics
• Cash flow negative –
potential dividend risk
Source: BlackRock, 31 July 2017
Reference to the names of each company mentioned in this communications is merely for explaining the investment strategy, and should not be construed as investment advice or
investment recommendation of those companies.
Over-ownership of banks
• Compressing profitability under
low rates
• Liquidity mismatch in Eurozone
and intense banking competition
structural headwinds on loan
pricing
Limited growth in insurers:
• e.g. AXA growth target 3-7%
• Many insurers boast capital
heavy business models
increasingly challenged by
regulation
• Highly regulated
industries with less room
for growth
• High capex requirements
within most businesses
MATERIAL IS CONFIDENTIAL, NOT AN OFFER TO THE PUBLIC AND THE MATERIAL IS NOT FOR DISTRIBUTION AE1017E-293694-875310
South Africa Listing – Indicative Time Table
38FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS ONLY
MATERIAL IS CONFIDENTIAL, NOT AN OFFER TO THE PUBLIC AND THE MATERIAL IS NOT FOR DISTRIBUTION
Meetings exclusively conducted for selected qualified and professional investors. *Subject to required approvals. Information accurate as at 30 October 2017.
Description Date
Meetings 13–17 November 2017
Opening of Book* 09:00 Monday 13 November 2017
Closing of Book* 17:00 Friday 17 November 2017
Allocations Announced* Monday 20 November 2017
Settlement and Listing of Shares* Friday 24 November 2017
Estimated Number of Shares being Placed 10.2 m shares (however, may be more)
Placing Price per ShareRand equivalent of NAV per share on the date the
book closes. NAV was 341.7 as at 29/09/2017
AE1017E-293694-875310
Contact
39FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS ONLY
Johan Holtzhausen, PSG Capital, Managing Director
Tel: +27 21 887 9602
Mobile: +27 28 558 3623
Willie Honeyball, PSG Capital, Director
Tel: +27 21 887 9602
Mobile: +27 71 173 4729
Simon White, BlackRock Head of Investment Trusts, Managing Director
Tel: +44 20 7743 5824
Mobile: +44 7866 454 082
Barbara Vintcent, BlackRock Country Head of Southern Africa, Managing Director
Tel: +27 21 403 6446
Mobile: +27 79 304 0638
Khoabane Phoofolo, BlackRock South Africa, Vice President
Tel: +27 21 403 6441
Mobile: +27 72 296 3307
MATERIAL IS CONFIDENTIAL, NOT AN OFFER TO THE PUBLIC AND THE MATERIAL IS NOT FOR DISTRIBUTION AE1017E-293694-875310
Important information
40FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS ONLY
This material is only distributed to South African investors for information purposes and subject to the following restrictions:
(a) the South African investor is: a bank; a person whose ordinary business, or part of whose ordinary business, is to deal in securities (whether as
principals or agents); the Public Investment Corporation (SOC) Limited; an authorised financial services provider; a financial institution; a wholly owned
subsidiary of a bank, a financial services provider or financial institution acting as agent in the capacity of an authorised portfolio manager for a registered
pension fund or as manager of a registered collective investment scheme; or a combination of the abovementioned entities; or
(b) the South African investor is a single addressee acting as principal who is willing to subscribe for BlackRock Greater Europe Investment Trust plc to the
value of at least ZAR 1,000,000 (one million Rand); or
(c) this offer is a non-renounceable offer made only to South African investors who are existing holders of the BlackRock Greater Europe Investment Trust
plc or persons related to existing holders of the BlackRock Greater Europe Investment Trust plc.
Recipients who accept this offer warrant that they have obtained the relevant exchange control approval.
Please be advised that BlackRock Investment Management (UK) Limited is an authorised Financial Services provider with the South
African Financial Services Board, FSP No. 43288.
MATERIAL IS CONFIDENTIAL, NOT AN OFFER TO THE PUBLIC AND THE MATERIAL IS NOT FOR DISTRIBUTION AE1017E-293694-875310
Important information
41FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS ONLY
This material is for distribution to Professional Clients (as defined by the FCA or MiFID Rules) and Qualified Investors only and should not be relied upon by any other
persons.
Issued by BlackRock Investment Management (UK) Limited, authorised and regulated by the Financial Conduct Authority. Registered office: 12 Throgmorton Avenue,
London, EC2N 2DL. Tel: 020 7743 3000. Registered in England No. 2020394. For your protection telephone calls are usually recorded. BlackRock is a trading name
of BlackRock Investment Management (UK) Limited.
Please be advised that BlackRock Investment Management (UK) Limited is an authorised Financial Services provider with the South African Financial Services Board,
FSP No. 43288.
Past performance is not a guide to current or future performance. The value of investments and the income from them can fall as well as rise and is not
guaranteed. You may not get back the amount originally invested. Changes in the rates of exchange between currencies may cause the value of investments to
diminish or increase. Fluctuation may be particularly marked in the case of a higher volatility fund and the value of an investment may fall suddenly and
substantially. Levels and basis of taxation may change from time to time.
Net Asset Value (NAV) performance is not the same as share price performance, and shareholders may realise returns that are lower or higher than NAV performance.
Investment strategies, such as borrowing, used by the Trust can result in even larger losses suffered when the value of the underlying investments fall.
All the trusts are traded on the London Stock Exchange and dealing may only be through a member of the Exchange. The Trust has appointed BlackRock Investment
Management (UK) Limited as Investment Manager. It will not invest more than 15% of its gross assets in other listed investment trusts. SEDOL™ is a trademark of the
London Stock Exchange plc and is used under licence.
Investment trusts currently conduct their affairs so that their securities can be recommended by IFAs to ordinary retail investors in accordance with the FCA’s rules in
relation to non-mainstream investment products and intend to continue to do so for the foreseeable future. The securities are excluded from the FCA’s restrictions which
apply to non-mainstream investment products because they are securities issued by investment trusts.
Overseas investment will be affected by movements in currency exchange rates. Emerging market investments are usually associated with higher investment risk than
developed market investments. Therefore the value of these investments may be unpredictable and subject to greater variation. Investment strategies, such as
borrowing, used by the Trust can result in even larger losses suffered when the value of the underlying investments fall. 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.
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.
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