Download A6 Share Class

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.
 The intention to pay dividends of a
reasonably consistent nature
BlackRock offers Distributing (S) Shares (the “Shares”) on a selection of
funds within its flagship BlackRock Global Funds (BGF) range. The
Shares aim to provide investors with a stable monthly dividend per
share, by smoothing income generated by a fund over time.
 Regular (monthly) cash flows to
investors, with the aim of stabilising
dividends per share compared to
investing in other Distributing Shares
offered in BGF
Investors should be aware that the Shares pay dividends that are likely
to include a partial return of invested capital from time to time. Whilst
the Shares aim to reduce variability in monthly dividends per share,
there are no guarantees that no guarantees that they will be successful
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
fund over any single period, and are aware of and willing to accept risks
to capital growth. They are not suitable for investors seeking
guaranteed dividends or who are primarily looking to maximise total
returns.
Distributing (S) Shares offer:
 Any guaranteed dividends – the
Directors retain full discretion to alter
the dividend amount in any given
period
 Any capital protection – a part of the
dividend may come from invested
assets. In extreme cases, the entire
dividend may be paid from capital if a
fund has zero distributable income for
that period
 High dividends – the emphasis is on
dividend per share sustainability, not
high or enhanced dividends
Key Considerations:
 In an effort to provide a more
consistent income, the dividends on
the Shares may be expected to
include capital as monthly dividends
can be more than a fund’s income
 Income will be paid gross of expenses.
All fees and expenses will be
deducted from invested assets of the
relevant fund and may erode fund
capital
 Partial or entire payment of dividends
from invested assets may reduce the
potential for long-term capital growth
of your investment or increase risk of
capital losses
 Investors should be aware of any
impact to their personal taxation
situation before investing in the
Shares
How do Distributing (S) Shares operate?
The Shares seek to pay investors a regular, stable dividend per share in
line with the income generated by investments held within the relevant
fund
 The monthly dividend will be determined by a dedicated committee
 These dividends are expected to be set on a quarterly basis (i.e. for
the coming three months). HOWEVER, dividend levels may be revised
at any time by the committee if deemed necessary (e.g. if market
conditions change significantly enough to adversely impact the
relevant fund)
 Dividends will be announced on the last business day of each month
and paid within the following month
 The Shares are also referred to with the suffix “6” (e.g. Class A6)
What is the impact on portfolio management of
Distributing (S) Shares?
 There is no intention for the offering of Shares to prompt a change in
the way that a fund is managed
Risk to Capital Growth
 In order to maintain stability, the Shares may make distributions
from capital as well as from income
This may translate into higher dividends per share with the effect of
reducing capital growth and increasing the risk of capital losses
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
Class
Paid
Calculated
Dividend Basis
Gross/Net
Expenses
Stable
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
(on the basis of gross income)
Gross
Yes
Distributing (R)
A8
Monthly
Monthly
Determined by Committee
(on the basis of gross income and
interest rate differential)
Gross
Yes
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
FOR MORE INFORMATION
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