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A mutual fund scheme that invests primarily in BlackRock (BGF) Global Allocation Fund- An international fund with a track record of over 17 years, giving investors the access to multiple asset classes and sectors across 40 countries in 30 currencies through the feeder fund route.
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dspblackrock.com
global allocationfundAn Open Ended Fund Of Funds Scheme Investing In AN International Fund
NFO Period: August 01, 2014 to August 14, 2014
^Investors should consult their financial advisors if in doubt about whether the scheme is suitable for them.
Note: Risk may be represented as: • Investors understand that their principal will be at Low risk (Blue) • Investors understand that their principal will be at Medium risk (Yellow) • Investors understand that their principal will be at High risk (Brown)
This Open ended Fund of Funds Scheme is suitable for investors who are seeking^• Long-term capital growth;• Investments in units of overseas funds which invest in equity, debt
and short term securities of issuers around the world; • High Risk (Brown)
About DSP BlackRock Global Allocation Fund
Access one of the largest funds in the world with a track record of over 17 years
2
Source: BlackRock; #AUM of BGF– GAF as on June 30, 2014. AUM of Global Allocation strategy (across all sub-portfolios) is in excess of USD 100 billion as of June 30, 2014.
Indian Investors
Product Structure:
Performance of BGF-GAF (in INR terms) - in SEBI prescribed format
Past performance may or may not be sustained in future.##Based on investment of Rs. 10,000 made at inception ^Scheme Benchmark : Composite Index (36% S&P 500; 24% FTSE World (ex-US); 24% BofA ML US Treasury Current 5 Year; 16% Citigroup Non-USD World Government Bond Index)*Standard Benchmark. ^^I2 share class was originally introduced on 20th June, 2008 but was later discontinued and reintroduced on 15th September, 2010. Hence, since inception data is not available. USD/INR currency conversion data has been sourced from Bloomberg. All returns are absolute unless otherwise mentioned.
Please note that DSP BlackRock Global Allocation Fund shall be investing in I2 share class of BGF-GAF
The Luxembourg-domiciled fund has an AUM of USD 21.6 billion#
DSP BlackRock Global Allocation Fund
BlackRock Global FundsGlobal Allocation Fund
(BGF-GAF)
Period BGF-GAF Scheme CNX (A2 share class) Benchmark^ Nifty*
30 June 2013 to 30 June 2014 14.27% 17.56% 30.28%
30 June 2012 to 30 June 2013 17.24% 16.84% 10.67%
30 June 2011 to 30 June 2012 18.48% 25.15% (6.53%)
Since Inception (CAGR) 10.97% 10.02% 12.16%
Since Inception (Value)## ` 61,777.7 53,233.8 74,513.7
NAV/Index Value ` 3,063.47 10,080.58 7,611.35(as of 30-June-14)
Period BGF-GAF Scheme CNX (I2 share class) Benchmark^ Nifty*
30 June 2013 to 30 June 2014 15.43% 17.56% 30.28%
30 June 2012 to 30 June 2013 18.37% 16.84% 10.67%
30 June 2011 to 30 June 2012 19.62% 25.15% (6.53%)
Since Inception (CAGR)^^ N.A. N.A. N.A.
Since Inception (Value)## ^^ N.A. N.A. N.A.
NAV/Index Value ` 3,176.02 10,080.58 7,611.35(as of 30-June-14)
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BGF Global Allocation Fund: Highlights
A “one-stop” international diversification, global allocation and rebalancing solutionSource: BlackRock
Past performance may or may not be sustained in future.*Equity markets represented by the FTSE World Index and MSCI World Index. Risk is measured by standard deviation. Please refer to slide no 5 for more details.
Largest actively managed multi-asset strategy in the world with an AUM in excess of USD 100 billion and history of over 25 years
BGF-GAF has delivered returns in excess of global equity indices* with around 1/3rd less volatility since inception, providing investors a long history of protecting on the downside and rewarding on the upside
A go-anywhere, flexible investment solution that typically invests in more than 700 securities across 40 countries in 30 currencies across sectors
Very Experienced Global Multi-Asset Team
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Seasoned management team of 45 dedicated professionals with 300+ years of combined experience
BGF Global Allocation Fund: Managed by an experienced Investment team
The 3 Portfolio Managers have more than 90 years of combined experience. Dennis Stattman has been with BGF-GAF since inception
Rigorous investment process with a top-down macro strategy to decide asset allocation, and bottom-up security selection
Dan ChambyCFA
Dennis Stattman,CFA
Aldo Roldan,Ph. D.
Asset Allocation Top-down view of industries/regions + security selection
Benchmark: 60% Equities, 40% Fixed Inc/60% US, 40% ex-US
UniverseGlobal equities and fixed income of all sizes and qualities, cash equivalents
Portfolio ConstructionOver 700 holdings, broadly diversified
ResearchEquity: Bottom-up, value-driven, fundamental process
Fixed Income: Focus on total return and credit analysis
18%
12%
6%
0%BGF GlobalAllocationFund (A2)
FTSEWorldIndex
MSCIWorldIndex
9.70%
14.48%14.68%
5
Competitive returns 1/3rd less risk
12%
10%
8%BGF GlobalAllocationFund (A2)
FTSEWorldIndex
MSCIWorldIndex
10.97%
9.44%
10.23%
Mission: Provide a core holding, suitable for a broad range of clients, and deliver a competitive rate of return with less risk than a traditional equity portfolio
BGF Global Allocation Fund: Delivering on its objective
Past performance may or may not be sustained in future. As of 30 June 2014. Source: BlackRock, Lipper, Morningstar. Inception date: 3 January 1997 (A2 share class). Basis: NAV prices, with gross dividends reinvested, net of expenses. ISIN code: LU0072462426. The composition of BGF Global Allocation Fund , FTSE World Index and MSCI World Index is different
Annualized total return since inception (INR terms) Annualized standard deviation since inception (INR terms)
Inception date: 3 Jan, 1997
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BGF Global Allocation Fund: Designed to perform in all market conditions
Past performance may or may not be sustained in future.Source: BlackRock, Lipper. Basis: NAV prices, with gross dividends reinvested, net of expenses. Benchmark :Composite Index (36% S&P 500; 24% FTSE World (ex-US); 24% BofA ML US Treasury Current 5 Year; 16% Citigroup Non-USD World Government Bond Index)Inception date for BGF Global Allocation Fund (A2 share class): 03-Jan-1997
Absolute returns (January 2000 to June 2014, INR terms)
7.82%
70.00%73.36%
11.24%
254.41%
-50%
0%
50%
100%
150%
200%
250%
300%
BGF Global Allocation Fund (A2) 7.82% 73.36% 11.24% 70.00% 254.41%
Reference Benchmark* -8.39% 47.55% 9.92% 91.91% 185.85%
FTSE World Index -33.39% 92.10% -6.27% 110.61% 152.88%
MSCI World Index -36.23% 79.73% -8.96% 112.42% 122.22%
Citigroup World Gov't Bond Index 32.46% 14.17% 34.21% 48.45% 202.18%
Technology Bubble 1/1/00 - 12/31/02
Global Market Recovery
1/1/03 - 12/31/07
Global Credit Crisis 1/1/08 - 12/31/09
Global Easing Cycle
1/1/10 - 6/30/14
Combined Period 1/1/00 - 6/30/14
7
BGF Global Allocation Fund: Benefits of active management
Past performance may or may not be sustained in future. As of 30 June 2014. Source: BlackRock, Bloomberg, Lipper, Morningstar. Basis: NAV prices, with gross dividends reinvested, net of expenses. Return data quoted is based on the absolute returns in USD. Morningstar peer group is the Moderate Allocation peer group. Standard deviation is a measure of the dispersion of a set of data from its mean. The more spread apart the data, the higher the deviation. Standard deviation is also known as historical volatility and is used by investors as a gauge for the amount of expected volatility.
Seeking to preserve and reward over the long term (January 1997 to June 2014, USD terms)
Higher Return/Lower Volatility Higher Return/Higher Volatility
Lower Return/Higher VolatilityLower Return/Lower Volatility
Cash
BGF Global Allocation Fund
US CPI Commodities
5 Year Treasury Bonds
10 Year Treasury Bonds
US Credit
World Gov't BondsWorld Gov't Bonds (xUS)
UK Gilts
German Bunds
Japanese Gov't Bonds
US Stocks
Int'l Stocks
Global LargeCap Stocks
Global SmallCap Stocks
European Stocks
Japanese Stocks
Pac x-Japan Stocks
Emerging Market Stocks
Morningstar Peer Group
Reference Benchmark
0%
50%
100%
150%
200%
250%
300%
0% 5% 10% 15% 20% 25% 30%
Risk (Annualized Standard Deviation)
Cum
ulat
ive
Ret
urn
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BGF Global Allocation Fund: Investment Thesis
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Global Outlook
Portfolio Positioning Point of view
Equities over Bonds Despite 5-year equity rally, better value still remains with stocks. Selectivity is important at this point in the cycle.
Certain cyclical sectors (Materials, Industrials, Technology) offer relatively attractive growth and value characteristics compared to more defensive sectors.
Look for value in Japan and Europe US equities possess more upside, but better value opportunities lie elsewhere.
Japan remains our preferred equity market, but we recommend owning its stocks on a partially JPY-hedged basis.
European equity valuations offer value, despite sluggish GDP outlook.
Select stock specific opportunities in emerging market equities.
Opportunity in Fixed Income is Changes in central bank policy and/or positive growth surprises pose risks to bond prices.Rare and Limited Credit/High Yield expensive in historical terms with material liquidity risk.
Opportunities in local currency emerging market sovereign bonds.
Risk has not disappeared Historical volatility remains very low across major asset classes. This tends to encourage risk taking at inopportune times.
Cash can help limit absolute losses should stock and bond correlations increase.
The opinions presented are those of the BlackRock Global Allocation Team as of July 2014 and may change as subsequent conditions vary. Individual portfolio managers for BlackRock may have opinions and / or make investment decisions that may, in certain respects, not be consistent with the information contained in this presentation. This 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.
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• Japanese households have almost $3.5 trillion in cash holdings. Even a small shift from these holdings will result in a massive inflow for equity markets
• US households have almost 30% of their financial assets in equities, whereas Japanese households have less than 10%
• Reforms in the Government Pension Investment Fund, worth around $1.26 trillion will cause it to divert more of its resources to equities and less to bonds due to the acceleration in inflation
• Bank of Japan’s new policy is shifting the country to an inflationary environment, which will cause domestic investors including households and pension funds to focus on assets that increase in value as yen weakens instead of low risk assets
• Japanese equity markets witnessed a turnaround after Abe’s victory in 2012
• The equity market performance has been boosted by “3 arrows of Abenomics” which consist of fiscal stimulus, monetary easing and structural reforms in a bid to revive the Japanese economy
• Bank of Japan too has been very aggressive with its monetary easing policy, and is likely to continue easing without impediment
• This easing will likely weaken the yen further against the USD, particularly as the Federal Reserve winds down its own quantitative easing program
• Many companies in Japan being exporters stand to benefit greatly from a weakening yen
Breakdown of Financial Assets in Japanese Households
Japanese equities benefit from a weakening Yen
Opportunity in Japanese Equities
End of deflation may prompt household savings towards equities Source: Goldman Sachs Global Investment Research, Toyo Keizai, Factset, I/B/E/S, Goldman Sachs Global Investment Research. November 2013| BlackRock, June 25, 2014
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TOPIX Index (LHS) Yen/USD (RHS)
Currency and
Deposits53%
Bonds7%
Shares8%
Insurance and
Pension Reserves
28%
Other4%
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Europe equities are attractive; US equities are fairly priced
Source: Thomson Reuters Datastream, Eurostat, BlackRock Investment Institute, June 2014.
Eurozone: Quarterly GDP growth
-0.6%
-0.4%
-0.2%
0.0%
0.2%
0.4%
0.6%
0.8%
1.0%
2009 2010 2011 2012 2013
• The economic conditions in Europe seem to be improving, though growth seems sluggish. Europe now runs current account surpluses and is decreasing its debt which has helped support the Euro
• As inflation (currently at 0.5%) remains well below ECB’s target (2%), it is possible that an easy monetary policy will continue well into the future, providing further impetus to equities
• A strong Euro is also a cause for concern, as many manufacturing and export-driven economies lose competitiveness. ECB also faces a big challenge as it tries to implement a monetary policy that works for both peripheral and core countries
US: S&P 500 Index P/E
Accommodative monetary policy and improving economic conditions create a healthy environment for equity markets
Shale gas and Industrial sectors offer exciting investment opportunities
• US equities have been one of the best performing markets in the last few years, delivering a CAGR of 15.4% from 2009-2014
• The broader markets now appear fairly valued, particularly as earnings growth has been slower than what was experienced in the earlier stages of the bull market
• Shale oil & gas revolution could help US become energy self-sufficient by next decade, leading to lower energy prices and benefitting US utilities which use natural gas as an input.
• Many companies who used their funds to buy back shares and pay dividend may now focus on corporate reinvestment. Capital good stocks will stand to gain as corporate spending increases.
0
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30
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26.1
18.8
1950 1958 1966 1974 1982 1990 1998 2006 2014
Cyclically adjusted S&P 500 Index P/E ratio
12
Interest rates in developed economies versus emerging economies
Source: Bloomberg, June 25, 2014
Low yields present limited opportunity in the Fixed Income markets of Developed Economies
0.5% 0.6% 1.2% 1.6%2.5% 2.6% 2.8% 2.9%
4.1%
6.1%
8.5% 8.8%
12.1%
0%
2%
4%
6%
8%
10%
12%
14%
Japa
n
Sw
itze
rlan
d
Ger
man
y
Fran
ce
US
UK
Spa
in
Ital
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Chi
na
Gre
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Rus
sia
Indi
a
Bra
zil
Sovereign 10Y yields
0
1
2
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Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14
Europe UK US Japan Switzerland
Interest rates in developed economies are historically low Central Bank Interest Rates
Central Banks have maintained low interest rates• Changes in central bank policies or increase in interest rates
because of growth or inflationary concerns would pose a risk to bond prices
• Countries like Italy and Spain which experienced debt crisis in 2012, have historically low yields indicating investors increasing risk appetite and expensive valuations for credit
• Emerging economies like Russia, India and Brazil offer attractive yields, but size of markets is smaller
Interest rates in emerging economies are significantly higher
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Sep-10 Jun-11 Mar-12 Dec-12 Sep-13 Jun-14
Italy Spain
13
BGF Global Allocation Fund: Portfolio snapshot as of 30 June 2014
Asset allocation (as % of net assets)Equity Strategy (58% ~ Underweight) Overweight:
• Regions: Japan and Europe
• Sectors: Materials, Industrials, Healthcare
Underweight:
• Regions: US
• Sectors: Consumer Staples, Financials, Technology, Telecom Services
Fixed Income Strategy (21% ~ Underweight)Overweight:
• Corporates, Convertibles, Local Currency EMD
Underweight:
• US Treasuries, Japanese Government Bonds, and European Government Debt
Cash (21% ~ Overweight)• Actively managed, both USD and non-USD
As of 30 June 2014. Source: BlackRock. Subject to change. BGF-GAF is actively managed and its characteristics will vary. The asset allocations illustrated are shown as a percentage of net assets. Overweight/underweight indicators are relative to BGF-GAF’s reference benchmark: Composite Index (36% S&P 500; 24% FTSE World (ex-US); 24% BofA ML US Treasury Current 5 Year; 16% Citigroup Non-USD World Government Bond Index).
Number of securities 700+ Procter & Gamble 0.8%Number of currencies 30+ Apple 0.8%Annual turnover 30-50% Wells Fargo 0.7%Effective duration 6.0 Visa 0.7%Price/earnings (FY1) 15.2 Roche Holding 0.7%Price/book 2.0 Siemens 0.6%Price/cash flow 8.6 Safran 0.6%Equity market capitalization (Sm / Mid / Lg) 1% / 10% / 47% Nestle 0.6%
Freeport-McMoran Copper & Gold 0.6%Comcast 0.6%TOTAL 6.7%
Characteristics Top 10 equity holdings (% of net assets)
27%
9%31%
12%
21%
US EquitiesNon-US EquitiesUS Fixed IncomeNon-US Fixed IncomeCash
14
BGF Global Allocation Fund: Performance as on 30 June 2014
Historical growth of `100,000 (January 1997 to June 2014)
Past performance may or may not be sustained in future.As of 30 June 2014. Source: BlackRock, Lipper, Morningstar. Launch date: 3 January 1997 (for A2 share class). Basis: NAV prices, with gross dividends reinvested, net of expenses. ISIN code: LU0072462426. *Benchmark : Composite Index (36% S&P 500; 24% FTSE World (ex-US); 24% BofA ML US Treasury Current 5 Year; 16% Citigroup Non-USD World Government Bond Index)
Returns up to 1 year are in absolute terms and over 1 year are in CAGR terms.
` 100,000
` 200,000
` 300,000
` 400,000
` 500,000
` 600,000
` 700,000
` 617,777
` 532,338
` 375,671
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BGF Global Allocation Fund (A2) Reference Benchmark* Morningstar Mod. Alloc. Peer Group
BGF Global Allocation Fund (A2) 0.31% 14.26% 16.63% 13.54% 9.73% 10.97%
Reference Benchmark* 2.71% 17.52% 19.77% 16.48% 9.98% 10.02%
FTSE World Index 3.62% 25.12% 22.79% 20.42% 11.03% 10.23%
Citigroup World Gov't Bond Index 2.26% 8.47% 12.27% 8.51% 7.69% 8.34%
7.24% 7.86%Morningstar Mod. Alloc. Peer Group 1.31% 13.65% 15.77% 13.01%
YTD 1 Year 3 Years 5 Years 10 Years Since Inception
15
Features Name of the Scheme DSP BlackRock Global Allocation Fund
Type of Scheme Open-ended Fund of Funds Scheme investing in an international fund
Underlying Scheme BGF Global Allocation Fund (BGF-GAF)
Fund Managers Jay Kothari & Laukik Bagwe
NFO dates 1 August 2014 – 14 August 2014
Benchmark Composite Index (36% S&P 500; 24% FTSE World (ex-US); 24% BofA ML US Treasury Current 5 Year; 16% Citigroup Non-USD World Government Bond Index)
Entry load Not Applicable
Exit load Holding period < 12 months: 1% Holding period >= 12 months: Nil
Plans Regular Plan Direct Plan
Options • Growth (default option) • Dividend - Payout Dividend - Reinvest Dividend
DSP BlackRock Global Allocation Fund: Scheme Features
DSP BlackRock Global Allocation Fund shall invest in I2 share class of BGF Global Allocation Fund. For Investment Objective, Asset Allocation and other risk factors, please refer to Disclaimer page
16
Appendix
18%
12%
6%
0%BGF GlobalAllocationFund (A2)
FTSEWorldIndex
MSCIWorldIndex
10.77%
16.02%16.34%
17
Competitive returns 1/3rd less risk
8%
4%
0%BGF GlobalAllocationFund (A2)
FTSEWorldIndex
MSCIWorldIndex
7.73%
6.25%7.01%
Returns and risk in USD terms
BGF Global Allocation Fund: Delivering on its objective
Past performance may or may not be sustained in future. As of 30 June 2014. Source: BlackRock, Lipper, Morningstar. Launch date: 3 January 1997 (A2 share class). Basis: NAV prices, with gross dividends reinvested, net of expenses. ISIN code: LU0072462426.
Annualized total return since inception (USD returns) Annualized standard deviation since inception (USD returns)
18
BGF Global Allocation Fund: Reference benchmark
As of 30 June 2014. Source: BlackRock. BGF-GAF is not a “balanced” product, as its weightings are not rigidly adhered to. BGF-GAF is actively managed and its characteristics will vary. A benchmark serves as a standard against which the performance of a security, mutual fund or investment manager can be measured. Reference benchmark: Composite Index (36% S&P 500; 24% FTSE World (ex-US); 24% BofA ML US Treasury Current 5 Year; 16% Citigroup Non-USD World Government Bond Index). It is not possible to invest directly in an index.
Reference benchmark A go-anywhere, flexible investment solution
Diversification:• Asset class – equities, fixed income and cash equivalents
• Geographic – US and abroad
• Capitalization – all sizes
• Securities – many portfolio holdings (>700)
• Currencies – developed, emerging
Neutral asset class allocation
• 60% Equity
• 40% Fixed income
Neutral regional allocation
• 60% US
• 40% Non-US
S&P 50036%
BofA ML Current 5-Yr US Treasury
24%
Citi Non-USD World Gov't Bond 16%
FTSE World ex-US 24%
19
As of 30 June 2014.*Randy Berkowitz has a dual role.
BGF Global Allocation Fund: Investment Team
Product Strategist Team
Oscar Pulido, CFA Matt EstesNoah Kroll Brian Miller, CFAMeghan Colarusso, CFA Melissa Barnett
Quantitative Strategy
Randy Berkowitz, CFA* Sam Indyawan, CFA
Ben Moyer, CFA33 years experience
Asia Pacific Investments,
Industrials, Autos
Eric Mitofsky31 years experience
Quantitative Analysis Derivatives,
Risk Management
Kate Rauscher, CFA28 years experience
Equity & Fixed IncomeUtilities, Consumer,
Insurance
Lisa Walker, CFA28 years experience
Equity & Fixed IncomeFinancial Services,
Banks
Greg Spencer25 years experience
Equity & Fixed IncomeTelecom, Media,
Consumer, High Yield
David Clayton, CFA, JD24 years experience
Equity & Fixed IncomeEnergy, Real Estate, Private Placements,
Distressed Debt
Senior Analysts
Kevin McKenna, co-COO31 years experience
Lisa O’Donnell, JD, co-COO27 years experience
Team Development, Risk,Operations, Compliance
Dan Chamby, CFA Portfolio Manager
26 years experienceAsset Allocation &
Investment Strategy
Mike Walsh, CFA23 years experience
Fixed Income,Derivatives
Daniel Daniel, CFA, CMT 17 years experience
Equity & Fixed IncomeInformation Technology,
Technical Analysis
Dennis Stattman, CFA Portfolio Manager
34 years experienceAsset Allocation &
Investment Strategy
Aldo Roldan, Ph.DPortfolio Manager
30 years experienceAsset Allocation &
Investment Strategy
Mike Trudel, CFA, JDGlobal Strategist
17 years experienceMacro Strategy
& Analysis
Portfolio Management
Senior Analysts
Marie Dwyer Mike CarlucciPete Mathern Kim Moore
Andy Nielsen
Portfolio Transactions
Nicole Apostol Christine GarveyLisa Gill Wendy Held
Lisa Peterson
Portfolio Administration
Senior Analysts
Patrick Edelmann, CFA15 years experience
Equity & Fixed Income Healthcare, Materials,
Convertibles
Kent Hogshire, CFA 14 years experience
Equity & Fixed IncomeIndustrials, Special
Situations, Macro Strategy
Randy Berkowitz, CFA* – HealthcareKevin Bynum, CFA – Fixed Income / Fx
Miguel Crivelli, CFA – FinancialsMartin Fransson, Ph.D, CFA – Materials, Precious Metals
Matt Gerard – GeneralistLindsay Klitsch, CFA – Consumer
Matt Litwin, CFA – EnergyJonathan Lux, CFA – IndustrialsChirayu Patel, CFA – Materials
Reid Ross, CFA – GeneralistSonia Wang, CFA – Japan, Healthcare
Angela Yu, CFA – China, Information Technology
Research Associates
A 45 member Investment Team with over 300 years of combined experience
Marketing Strategy & Communications
Judy RiceErica Quinn, CFA
20
BGF Global Allocation Fund: Characteristics as of 30 June 2014
As of 30 June 2014. Subject to change. BGF-GAF is actively managed and its characteristics will vary. Holdings are provided for informational purposes only and should not be deemed as recommendations to buy or sell securities or sectors mentioned.* Reference Benchmark: Composite Index (36% S&P 500; 24% FTSE World (ex-US); 24% BofA ML US Treasury Current 5 Year; 16% Citigroup Non-USD World Government Bond Index)
Equity regions (% of net assets) Equity sectors (% of net assets)
1.9%
2.0%
5.9%
5.9%
3.4%
7.0%
8.3%
6.9%
6.7%
12.0%
1.8%
2.0%
4.0%
6.1%
6.5%
7.0%
7.7%
9.1%
9.7%
11.2%
Telecom Services
Utilities
Cons. Staples
Energy
Materials
Cons. Discretionary
Information Technology
Healthcare
Industrials
Financials
1.7%
2.3%
3.9%
4.1%
12.6%
35.4%
1.7%
1.8%
4.6%
10.1%
13.1%
26.8%
Canada
Developed Asia ex-Japan
Emerging Markets
Japan
Developed Europe
US
Fixed income regions (% of net assets)
5.6%
0.4%
0.3%
9.2%
0.5%
24.0%
0.1%
0.4%
1.5%
3.8%
5.9%
9.3%
Japan
Canada
Developed Asia ex-Japan
Developed Europe
Emerging Markets
US
BGF Global Allocation Fund Reference Benchmark*
21
BGF Global Allocation Fund: Flexibility in practice
Source: BlackRock. Subject to change. Asset allocation strategies do not assure profit and do not protect against loss. Reference benchmark: Composite Index (36% S&P 500; 24% FTSE World (ex-US); 24% BofA ML US Treasury Current 5 Year; 16% Citigroup Non-USD World Government Bond Index). The information depicted above is for the BlackRock Global Allocation Fund, inception date of 3 March 1989 and is for illustrative purposes only. The investment team uses the same process for the BGF Global Allocation Fund.
BGF Global Allocation Fund has demonstrated its ability to adapt to ever-changing market conditions
Portfolio composition (December 1989 to June 2014)
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Equities Fixed Income Cash Benchmark
BGF-GAF was underweight equities relative to its benchmark for most of the 1990s
One of the largest equity overweights in BGF-GAF’s history was H2’01
Cash equivalents have regularly been held since inception
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Investment Objective: The primary investment objective of the Scheme is to seek capital appreciation by investing predominantly in units of BlackRock Global Funds - Global Allocation Fund (BGF - GAF). The Scheme may also invest in the units of other similar overseas mutual fund schemes which may constitute a significant part of its corpus. The Scheme may also invest a certain portion of its corpus in money market securities and/ or money market/liquid schemes of DSP BlackRock Mutual Fund, in order to meet liquidity requirements from time to time. However, there is no assurance that the investment objective of the Scheme will be realized. It shall be noted ‘similar overseas mutual fund schemes’ shall have investment objective, investment strategy and risk profile/consideration similar to those of BGF -GAF. Asset Allocation: a) Units of BGF - GAF# or other similar overseas mutual fund scheme(s): 95% -100%, and b) Money market securities and/or units of money market/liquid schemes of DSP BlackRock Mutual Fund: 0%-5%. #in the shares of BGF - GAF, an Undertaking for Collective Investment in Transferable Securities (UCITS) III Fund. Exit load: Holding period from date of allotment: Less than 12 months: 1% Greater than or equal to 12 months: Nil. Events of Suspension of Subscription/ Switch-in/Winding-up of the Scheme: (1) Temporary suspension of subscription in case of overseas investments exceeds the limits prescribed by SEBI and (2) Temporary suspension of subscription/ Winding up of the Scheme in case exposure to Indian equities by Underlying Fund exceeds 15% of the net asset of Underlying Fund.
Scheme specific risk factors: (1) Risks associated with underlying schemes, (2) Risks associated with overseas investments, (3) Risks associated with investment in debt and money market instrument, (4) Risk associated with transaction in Units through stock exchange mechanism and (5) Risks associated with trading in derivatives. For complete details on risk factors, underlying fund and more details investors are requested to read the Scheme Information Document of DSP BlackRock Global Allocation Fund available on www.dspblackrock.com.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
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