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International Equity SMA US WEALTH ADVISORY- SEPARATELY MANAGED ACCOUNTS SMAL0520U-10214.1-1/22

Transcript of Financial Planning & Investment Management | BlackRock - … · 2020-05-15 · BURBERRY GROUP ADR...

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International Equity SMA

US WEALTH ADVISORY- SEPARATELY MANAGED ACCOUNTS

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Table of Contents

1. Introduction to BlackRock

2. Investment Process

3. Investment Team

4. Target Portfolio Details

5. Important notes

Investing involves risk. Certain information contained herein has been obtained from various third party sources believed to be reliable, but we cannot guarantee its accuracy or completeness. Any information expressed herein is historical and subject to change, and is not a guarantee or an indication of future results. The information expressed herein does not constitute an offer to buy or sell any securities or derivative instruments.

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Introduction to BlackRock

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Active Equity252 bn

Passive Equity2.7 tn

Alternatives¹179 bn

Active Fixed Income887 bn

Passive Fixed Income1.3 tn

Multi-Asset494 bn

Cash Management594 bn

Advisory2.9 bn

BlackRock at a glance

Source: BlackRock. As of 31 March 2020. All figures are represented in USD.

• Established in 1988

• NYSE: BLK

• $6.46 trillion assets under management

• Over 16,000 employees

• More than 2,000 investment professionals

• Offices in over 34 countries

• 25 primary investment centers globally

• Clients in over 100 countries

• Over 850 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 $6.46 trillion managed across asset classes

We help more and more people experience financial well-being

BlackRock Purpose Statement

Assets as of 31 March 20201 Includes commodity and currency mandates

INTRODUCTION TO BLACKROCKMKTGH0520U-1186678-1/3

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Investment Process

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BlackRock International Strategy*Supplemental Information

INVESTMENT PROCESS - INTERNATIONAL EQUITY

For illustrative purposes only. As of 30 September 2019.* The above information is supplemental to the BlackRock International Focus GIPS Composite. Past performance is not a reliable indicator of future results..

Typically 30 – 40 holdings

No fixed style, regional, or sector biases

Active share consistently above 90%

More capital backing our best ideas

An unconstrained approach to seeking

alpha generation

Finding companies where we believe the earnings power is not

properly reflected in the valuation

Flexible DifferentiatedConcentrated

Consistent 12 year track record of outperformance *

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Philosophy

INVESTMENT PROCESS - INTERNATIONAL EQUITY

We believe in buying a small number of highly differentiated investment ideas

Truly active equity portfolios should have a high active share

We believe a style flexible approach provides the best framework for consistent long-term outperformance

Such an approach is only successful when combined with skilled and systematic portfolio construction

Portfolio managers should be properly aligned with clients, through significant personal investments in the strategy

As of 30 September 2019. The opinions expressed are those of the Global Equity Team and are subject to change.

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Bottom up, fundamental research across global sectors

Exploit insights from the team and wider BlackRock

Identify a long list of ideas where we believe the earnings power is not properly reflected in valuation

Identification of key investment drivers, and what is priced in the stock

Formal research template and broader research checklist

Evaluation of how, and over what time horizon our insights will be reflected in share prices

Core (60-70%*)

Duration, growth or quality of the earnings stream

Tactical (20-30%*)

Earnings and/or sentiment inflection

High Opportunity (0-10%*)

Wide range of potential earnings outcomes; highest risk-reward

30 – 40 positions

Scaled at 150 – 700bps * based on risk-adjusted return profile

Risk managed at an aggregate level

Taking into account each stock’s impact on overall portfolio risk

Detailed Risk Assessment

Typically >50% portfolio risk from stock specific exposure

Stress testing, factor exposures

Source: BlackRock, as at 30 September 2019. Investment process subject to change and provided for illustrative purposes only. There is no guarantee that a positive investment outcomewill be achieved. Risk management cannot fully eliminate the risk of capital loss.*Represents typical exposures

Exploiting our research insights across the book

Conviction levels and

position sizing

Detailed peer review

Pipeline meeting to prioritise

Investment Process

IdeaGeneration

Idea Segmentation

PortfolioConstruction

DueDiligence

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The BlackRock Sharing Economy

International Focus

Regional & Sector Equity Teams

Global Sector Groups

BlackRock Investment

Institute (BII)

Risk & Quantitative

Analysis (RQA)

BlackRock Investment

Stewardship (BIS)

Systematic Active Equity (SAE)

Aladdin Research

Clear investment benefits from being at the centre of BlackRock

Equity Capital Markets

Corporate deals, Corporate access

Equity Dealing Team

High Touch & Electronic dealing experts

IdeaGeneration

INVESTMENT PROCESS - INTERNATIONAL EQUITY

Source: BlackRock, as at 30 September 2019, for illustrative purposes only. There is no guarantee that a positive investment outcome will be achieved.

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View any stock as a potential investment, subject only to available liquidity

Focus on how the fundamentals relate to what is already discounted into share prices

Seek companies where the earnings power is not properly reflected in the valuation

Identifying Potential Ideas

Buy Ideas

Multi-facetedinvestment

thesis

Clarity & insightaround the

timeframe ofinvestment

Asymmetricreturn profile

High degreeof dispute around

a company’searnings power

DifferentiatedFundamental

insights

IdeaGeneration

INVESTMENT PROCESS - INTERNATIONAL EQUITY

As of 30 September 2019, for illustrative purposes only, and subject to change.

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Fundamental Research

Source: BlackRock, as of 30 September 2019. For illustrative purposes only.

In Depth Industry and Company Specific Research

A common research template orients our investment debate

1 Identify key financial, operational and share price drivers

2 Present bear, base, bull outcomes, and key risk factors

3 Categorise as Core, Tactical, or High Opportunity

4Discuss catalysts, change at the margin, and likely timeframe

5Invest where the earnings power is not reflected in valuation

DueDiligence

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Idea Segmentation

Source: BlackRock, as of 30 September 2019. For illustrative purposes only. Subject to change.*Represents typical ranges.

Core Duration / Quality60-70% of NAV

150 – 700bps* size

Review:Fundamental

investment case

Tactical Inflection20-30% of NAV150 – 500bps*

Stop loss:15% relative

underperformance

HighOpportunity

Wide Forecast Range

0-10% of NAV150bps

Stop loss:15% relative

underperformance

1 – 5 years*

3 – 12 months*

Varies

Idea TypeDispute aroundEarnings Power

Timeframe Positioning Discipline

Idea Segmentation

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Investment Team

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The Global Equity Team

2

As of 31 March 2020. Staff might be subject to change without notice. (##) indicates years of experience..

FOR INSTITUTIONAL AND FINANCIAL PROFESSIONAL USE ONLY. NOT TO BE SHOWN OR DISTRIBUTED TO THE GENERAL PUBLIC.

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Target Portfolio Details

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Sector Allocation

International Equity SMA*Supplemental Information - As of 3/31/2020

Past Performance is not indicative of future results.*The above information is supplemental to the composite disclosure slide located in the appendix. Investing involves risk. Model portfolio information reflects the current strategy of a fully discretionary, unconstrained account and is not the result of actual trading. Actual portfolios may differ as a result of account size, client-imposed investment restrictions, the timing of client investments and market, economic and individual company considerations. It is not possible to invest directly in an index. Performance data is reflective of the SMA’s composite. Please see Important Notes at the end of the presentation for additional disclosure and information.

Top Ten Equity Holdings (%)

9%

14

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12

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0%

14

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9%

16

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16

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5%

0%

0%

4%

7%

12

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10

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5%

19

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11

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11

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10

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7%

3% 4

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20%

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Portfolio Benchmark

Company Sector %

UNILEVER ADR REPRESENTING NV

Consumer Staples 5.56%

ROCHE HOLDINGS ADR AG Health Care 5.02%

ROGERS COMMUNICATIONS NON-VOTING I

Communication Services 5.02%

SONY ADR REPSG CORP Consumer Discretionary 4.99%

FANUC ADR CORP Industrials 4.85%

BURBERRY GROUP ADR PLC Consumer Discretionary 4.64%

VOLKSWAGE UNSPONSORED ADR REPRESE

Consumer Discretionary 4.01%

KNORR BREMSE ADR AG Industrials 3.76%

RECRUIT HOLDINGS UNSPONSORED ADR

Industrials 3.66%

HEINEKEN NV SPONSORED NETHERLANDS

Consumer Staples 3.63%

Strategy Inception Benchmark

1/1/1999 MSCI All Country World Index

The top 10 holdings do not represent all of the securities purchased, sold or recommended for any particular advisory client and in the aggregate may represent only a small percentage of an account's portfolio holdings. Securities are shown for illustrative purposes only and are not a solicitation to buy or sell any particular security or invest in a particular sector. Holdings are subject to change.

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International Equity SMA

Past Performance is not indicative of future results.*The above information is supplemental to the composite disclosure slide located in the appendix. Investing involves risk. Model portfolio information reflects the current strategy of a fully discretionary, unconstrained account and is not the result of actual trading. Actual portfolios may differ as a result of account size, client-imposed investment restrictions, the timing of client investments and market, economic and individual company considerations. It is not possible to invest directly in an index. Performance data is reflective of the SMA’s composite. Please see Important Notes at the end of the presentation for additional disclosure and information.

*Supplemental Information - As of 3/31/2020

Strategy Inception2 Benchmark1

1/1/1999MSCI All Country World

Index

Quarterly Composite Performance (% Returns)Not annualized for less than one year

Composite (Net) Composite (Gross) Benchmark1

YTD -23.36 -22.77 -23.36

3/31/2020 -23.36 -22.77 -23.36

12/31/2019 11.64 12.49 8.92

9/30/2019 -0.95 -0.19 -1.80

6/30/2019 3.82 4.61 2.98

Average Annual Total Composite Returns (%)

Composite (Net) Composite (Gross) Benchmark1

1 Year -12.01 -9.29 -15.57

3 Year -3.59 -0.60 -1.96

5 Year -1.56 1.48 -0.64

10 Year 0.18 3.27 1.80

Since Inception2 0.31 3.41 2.59

Historical Composite Performance (% Yearly Total Return)

Composite (Net) Composite (Gross) Benchmark1

2019 29.01 33.00 21.51

2018 -22.44 -20.04 -14.20

2017 27.33 31.27 27.19

2016 -0.91 2.15 4.50

2015 -3.38 -0.39 -5.66

2014 -9.56 -6.77 -3.87

2013 20.84 24.58 15.29

2012 10.32 13.73 16.82

2011 -14.21 -11.55 -13.73

2010 5.95 9.23 7.74

Model Portfolio Characteristics

Portfolio

Price-to-Earnings Ratio 13.88x

Price-to-Book Ratio 2.02x

Average Market Capitalization (Millions)

$57,161.51

Model Portfolio Risk Characteristics

Portfolio Benchmark1

Beta (3yr) 1.08 -

R-Squared (3yr) 94.79 -

Standard Deviation (3yr) 4.83% 4.37%

Sharpe Ratio (3yr) -0.06 -0.17

Net performance reflects the deductions of the maximum annual fee of 3.00%.

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Important Notes

THE INFORMATION CONTAINED HEREIN MAY BE PROPRIETARY IN NATURE AND HAS BEEN PROVIDED TO YOU ON A CONFIDENTIAL BASIS, ANDMAY NOT BE REPRODUCED, COPIED OR DISTRIBUTED WITHOUT THE PRIOR CONSENT OF BLACKROCK, INC. AND/OR ITS SUBSIDIARIES(TOGETHER, “BLACKROCK”).

This document contains general information only and does not take into account an individual’s financial circumstances. An assessment should be made as to whether the information is appropriate in individual circumstances and consideration should be given to talking to a professional adviser before making an investment decision.

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 securities or to adopt any investment strategy. The opinions expressed may change as subsequent conditions vary.

The information and opinions contained in this material are derived from proprietary and non-proprietary sources deemed by BlackRock to be reliable, are not necessarily all inclusive and are not guaranteed as to accuracy. Any investments named within this material may not necessarily be held in any accounts managed by BlackRock. Reliance upon information in this material is at the sole discretion of the reader. Statements concerning financial market trends are based on current market conditions, which will fluctuate. There is no guarantee that these investment strategies will work under all market conditions. Outlook and strategies are subject to change without notice.

For more complete information, please ask your Financial Advisor for the client agreement and disclosure document. Please read them carefully before you invest and consider the strategy’s investment objective, risks, charges and management expenses among other information contained in the documents

This communication and its content represent confidential information.

Performance and Fees. Past performance is no guarantee of future results. Certain performance figures do not reflect the deduction of investment advisoryfees (please refer to Part 2 of BlackRock’s Form ADV) in the case of separate accounts; but they do reflect commissions, other expenses, and reinvestment ofearnings. Such fees that a client may incur in the management of their investment advisory account may reduce the client's return. For example, assuming anannual gross return of 8% and an annual management/advisory fee of .40%, the net annualized total return of the portfolio would be 7.58% over a 5-yearperiod. The “net of fees’ performance figures reflect the deduction of actual investment advisory fees but do not reflect the deduction of custodial fees. Allperiods longer than one year are annualized. When BlackRock invests a client’s separate account in mutual funds or exchange traded funds, such funds maycharge fees and expenses payable to third parties and/or BlackRock that are in addition to the fee payable to BlackRock in connection with its management ofthe separate account.

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Important Notes

Composite and Benchmark Descriptions and Additional Performance Detail. Investing involves risk. The performance information shown reflects the performance of a composite of accounts (or portions of accounts) that does not necessarily reflect the performance that any particular account investing in the same or similar securities may have had during the period. Actual account performance is likely to differ from the composite performance shown for a variety of reasons, including but not limited to: differences in market conditions, portfolio turnover and in the number, types, availability and diversity of securities that can be purchased; economies of scale, regulations and other factors applicable to the management of large separate accounts and mutual funds; client-imposed investment restrictions; the timing of client investments and withdrawals; the deduction of taxes; tax considerations; and other factors. Composite and benchmark / index performance results reflect realized and unrealized appreciation and the reinvestment of dividends, interest, and / or capital gains. Taxes have not been deducted. Gross composite returns do not reflect actual performance because they do not reflect the deduction of any fees or expenses. Due to the compounding effect of these fees, annual net composite returns may be lower than stated gross returns less stated maximum fee. The firm’s performance results are the product of the efforts of numerous personnel and the firm-wide global resources made available to them. The personnel and resources contributing to the firm’s performance results include portfolio managers and their staff, research analysts, risk management professionals, in-house trading professionals, investment supervisory personnel, and the firm’s proprietary investment processes, integrated global research systems and access to third-party research sources.

RiskInvestment involves risk. Stock and bond values fluctuate in price so the value of your investment can go down depending upon market conditions. The twomain risks related to fixed income investing are interest rate risk and credit risk. Typically, when interest rates rise, there is a corresponding decline in themarket value of bonds. Credit risk refers to the possibility that the issuer of the bond will not be able to make principal and interest payments. The principal onmortgage- or asset-backed securities may be prepaid at any time, which will reduce the yield and market value of these securities. Obligations of USGovernment agencies and authorities are supported by varying degrees of credit but generally are not backed by the full faith and credit of the US Government.Investments in non-investment-grade debt securities (“high-yield bonds” or “junk bonds”) may be subject to greater market fluctuations and risk of default orloss of income and principal than securities in higher rating categories. Income from municipal bonds may be subject to state and local taxes and at times thealternative minimum tax. International investing involves risks related to foreign currency, limited liquidity, less government regulation, and the possibility ofsubstantial volatility due to adverse political, economic or other developments. These risks are often heightened for investments in emerging / developingmarkets or smaller capital markets.

Model PortfolioInformation concerning portfolio allocations, holdings, and characteristics is representative of the model portfolio for this strategy and does not necessarilyreflect an actual account. Actual portfolios may differ as a result of account size, client-imposed investment restrictions, the timing of client investments andmarket, economic, and individual company considerations.

Credit QualityThe credit quality of a particular security or group of securities does not ensure the stability or safety of an overall portfolio. The quality ratings of individualissues/issuers are provided to indicate the credit worthiness of such issues/issuer and generally range from AA, (highest) to D (lowest).

Securities ReferencedAny reference herein to any security and/or a particular issuer shall not constitute a recommendation to buy or sell, offer to buy, offer to sell, or a solicitation of

an offer to buy or sell any such securities issued by such issuer. BlackRock may or may not own the securities referenced and, if such securities are owned, no representation is being made that such securities will continue to be held.

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Important Notes

Tax & LegalThis material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, accounting, legal or tax advice. You should consult your tax or legal advisor regarding such matters.

Forward Looking InformationThis material may contain “forward-looking” information that is not purely historical in nature. Such information may include, among other things, projections,forecasts, estimates of yields or returns, and proposed or expected portfolio composition. Moreover, where certain historical performance information of otherinvestment vehicles or composite accounts managed by BlackRock has been included in this material and such performance information is presented by wayof example only. No representation is made that the performance presented will be achieved, or that every assumption made in achieving, calculating orpresenting either the forward-looking information or the historical performance information herein has been considered or stated in preparing this material.Any changes to assumptions that may have been made in preparing this material could have a material impact on the investment returns that are presentedherein by way of example. There is no guarantee that any forecasts made will come to pass.

Definitions:

Standard deviation is a statistical measure that depicts how widely the returns of an investment varied over a certain period of time. Investors can use the standard deviation of historical performance to try to predict the range of returns that may occur for a particular investment. A higher standard deviation indicates greater volatility or a wider range of returns.

Beta is a historical measure of the degree of change in value in a portfolio given a change in value in a benchmark index. A portfolio with a beta greater than one generally exhibits more volatility than its benchmark index, and a portfolio with a beta of less than one generally exhibits less volatility than its benchmark index.

Alpha measures the difference between a portfolio’s actual returns and its expected performance, given its beta and the actual returns of the benchmark index. Alpha is often described as a measurement of the value added or subtracted by a portfolio’s manager.

Up-market capture ratio is a measure of manager’s performance in up markets relative to the market itself. The higher the manager’s up-market capture ratio, the better the manager capitalized on a rising market. In this presentation, quarterly data is used.

Down-market capture ratio is a measure of manager’s performance in down markets relative to the market itself. The lower the manager’s down-market capture ratio, the better the manager protected capital during a market decline. In this presentation, quarterly data is used.

THIS MATERIAL IS HIGHLY CONFIDENTIAL AND IS NOT TO BE REPRODUCED OR DISTRIBUTED TO PERSONS OTHER THAN THE RECIPIENT.© 2019 BlackRock, Inc. All Rights Reserved. BLACKROCK is a registered trademark of BlackRock, Inc. and its subsidiaries. All other trademarks are the property of their respective owners.

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Please see the following page for important disclosures related to this composite.Data shown may be subject to revisions from time to time based on availability of new information. Any such revisions are not material.1. N/A – 36 months of data not available for that period.

Past Performance is not indicative of future results.

Historical Data: BlackRock International Equity SMA Composite

Calendar Year

Pure Gross of Fee Composite Return (%)

Net of Fee Composite Return (%)

Benchmark Return (%)

Number of Portfolios

Composite Dispersion (%)

Composite 3-Year Annualized Standard Deviation (%)1

Benchmark 3-Year Annualized Standard Deviation (%)1

Total Assets at End of Period (US$mn)

Percentage of Firm Assets

2005 15.72 12.85 13.54 8 0.11 N/A N/A 20 *

2006 22.10 18.44 26.34 28 0.25 N/A N/A 38 *

2007 13.86 10.44 11.17 43 0.25 9.35 9.43 40 *

2008 -39.83 -41.64 -43.38 82 3.06 18.48 19.24 32 *

2009 27.84 24.00 31.78 69 1.54 22.94 23.58 35 *

2010 9.23 5.95 7.75 69 0.43 25.92 26.24 35 <1

2011 -11.55 -14.21 -13.73 58 0.59 22.74 22.03 31 <1

2012 13.73 10.32 16.83 35 0.54 21.72 19.38 21 <1

2013 24.58 20.84 15.29 31 0.17 17.03 16.39 21 <1

2014 -6.77 -9.56 -3.87 29 0.49 12.26 11.82 14 <1

2015 -0.39 -3.38 -5.66 23 0.52 12.38 12.13 11 <1

2016 2.15 -0.91 4.5 25 0.13 12.86 12.69 9 <1

2017 31.27 27.33 27.19 28 0.05 12.25 12.03 65 <1

2018 -20.04 -22.44 -14.20 25 0.12 12.88 11.54 57 <1

2019 33.00 29.01 21.51 22 0.07 13.34 11.50 74 <1

U-INTL

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Notes:

1. For purposes of compliance with the Global Investment Performance Standards (GIPS®), the “firm” refers to the investment adviser and national trust bank subsidiaries of BlackRock, Inc., located globally. This definition excludes: i) BlackRock subsidiaries that do not provide investment advisory or management services, ii) the Absolute Return Strategies (funds-of-hedge-funds) business unit under the “BlackRock Alternative Advisers” platform, iii) BlackRock Capital Investment Corporation, LLC, iv) FutureAdvisor, Inc., and v) retail mutual funds and separately managed accounts within BlackRock México Operadora, S.A. de C.V., Sociedad Operadora de Fondos de Inversión.

2. BlackRock claims compliance with the GIPS standards and has prepared and presented this report in compliance with the GIPS standards. BlackRock has been independently verified for the periods 1 January 1993 through 31 December 2018. The verification reports are available upon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation. The firm is verified annually by Deloitte & Touche LLP.

3. Portfolio returns are calculated monthly, using the Modified Dietz method. Trade date accounting has been used since the inception of the composite. The returns are expressed in US dollars and are asset-weighted since inception.

4. The benchmark index shown is the MSCI All Country World ex US Index (Net Total Return). Prior to March 31, 2011 the benchmark was the MSCI EAFE Index.

5. Composite dispersion measures represent the consistency of a firm’s composite performance results with respect to the individual portfolio returns within a composite. Composite dispersion is the square root of the sum of monthly variances of portfolio returns around the composite returns. The monthly variance is the sum of the asset-weighted squared differences between the individual portfolio returns and the composite returns. Only portfolios that have been included in the composite style for a full month are accounted for in the dispersion calculation. For composites containing only one account, a measure of dispersion is not meaningful (NM).

6. Percentage of Firm Assets are rounded to the nearest whole percent.

7. There have been no alterations of the composite due to changes in personnel or other reasons.

8. The SMA strategy does not invest directly in derivatives, shorting or leverage. However, underlying funds where permitted by investment guidelines may utilize derivatives, shorting and leverage.

9. Gross of fee performance results are presented before management, custodial fees, broker fees and transaction costs, but net of withholding taxes (if applicable). The wrap fee covers the firm’s management services and transaction costs. Net returns are calculated by subtracting the highest applicable wrap fee (3.0% on an annual basis, or 0.75% quarterly). A complete list and description of all composites maintained by BlackRock and the related performance results are available upon request by emailing [email protected]. Additional information regarding policies for calculating and reporting returns is also available upon request.

BlackRock International Equity SMA Composite: This investment strategy seeks long-term capital appreciation. It invests primarily in equity securities of large capitalization companies domiciled in developed countries / markets outside of the US. It also may invest in small and medium capitalization companies, companies domiciled in emerging / developing markets and US domiciled companies with significant business exposure to non-US markets. Selection of this strategy indicates a willingness to assume the additional risks involved with international investing and a risk level that is greater than that of the US stock market in general. More detailed information on this strategy is available upon request.

The performance results from January 1, 2005 to the end of the most recent calendar year represents the composite of all fully discretionary, unconstrained Separately Managed Account (SMA) program accounts managed in this style by the firm for at least one month. Prior results represent the composite of all fully discretionary, unconstrained SMA program accounts managed in this style by the firm for at least one quarter.

The creation date of the composite is December 31, 2010. New accounts and accounts that have changed their investment mandate to that of the composite are included in the composite upon the completion of the first full month under management. Closed accounts and accounts that change their investment mandate are included in the composite through the completion of the last full month under management or the last full month under the old strategy.

Performance presented for periods prior to September 29, 2006 occurred while members of the portfolio management team were affiliated with Merrill Lynch Investment Managers, L.P (“Prior Firm”). Such members of the portfolio management team were responsible for investment decisions for SMA program accounts managed in the International Equity SMA style at the Prior Firm and the decision making process has remained intact and independent within the firm. The performance presented is for those portfolios that were brought over to the firm from the Prior Firm. In firm management’s opinion, such performance composite conforms to the GIPS standards with regard to the portability of investment results, and, as such, all historical performance results from the Prior Firm have been linked to the on-going performance results of the composite. Performance records of the Prior Firm are available upon request.

Historical Data: BlackRock International Equity SMA Composite (Cont’d)

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BLK GIPS-DS 2020SMAL0520U-10214.1-22/22