BlackRock Global Funds BGF World Mining Fundmms.prnasia.com/BCT/20150901/07_blackrock/07_eng.pdf · BlackRock World Mining Fund seeks to maximise total return. The Fund invests globally

BlackRock Global FundsBGF World Mining Fund

CLP Power Hong Kong Limited

FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS ONLY

24 April 2017

FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS ONLY

• Section 1 – BlackRock Overview• Section 2 – Introduction to BlackRock Global Fund (“BGF”) World Mining Fund

• Investment Team and Philosophy • Section 3 – Market Outlook• Section 4 – Fund Positioning and Performance

Table of Content

2

BlackRock Overview

BlackRock at a glance

UIM-0255

* As of 31 December 2016

• Established in 1988

• NYSE: BLK

• $5.15 trillion assets under management

• More than 12,000 employees

• More than 1,800 investment professionals

• Offices in over 30 countries

• 25 primary investment centers globally

• Clients in over 100 countries

• Over 800 iShares® ETFs Globally

BlackRock facts * $5.15 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 31 December 20161 Includes commodity and currency mandates

Active Equity 275 bn

Passive Equity2.4 tn

Alternatives1

117 bn

Active Fixed Income

752 bn

Passive Fixed Income

820 bnMulti-Asset

395 bn

Cash Management

404 bn

Advisory3 bn

Introduction to BGF World Mining Fund

BGF World Mining Fund Key Facts

6FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS ONLY

Key Facts

Asset Class Equity

Inception Date 24-March-1997

Fund Base Currency USD

Fund Size (Mil) 5,804.10 USD

Benchmark Euromoney Global Mining Constrained Weights Net Total Return Index

Domicile Luxembourg

Fund Type UCITS

ISIN LU0075056555

Bloomberg Index Ticker MIGWMFA

Portfolio Managers Evy Hambro (Since: 24 Mar 1997) Olivia Markham (Since: 01 May 2015)

INVESTMENT OBJECTIVE

BlackRock World Mining Fund seeks to maximise total return. The Fund invests globally at least 70% of its total assets inthe equity securities of mining and metals companies whose predominant economic activity is the production of basemetals and industrial minerals such as iron ore and coal. The Fund may also hold the equity securities of companieswhose predominant economic activity is in gold or other precious metal or mineral mining. The Fund does not holdphysical gold or metal.

BlackRock Natural Resources Team

FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS ONLY - FAEGLO-0250 7

BlackRock Offices worldwide250+ equity analysts, 300+ fixed income analysts

BlackRock Solutions & Risk Management1,800+ Professionals

Chief Investment OfficerEvy Hambro

BlackRock as at March 2017.

Names are displayed in alphabetical order by surname.

Cailey BarkerHannah Gray

Tom HollOlivia Markham

Mining & Gold

Poppy AllonbyAlastair BishopRuth BrookerCharlie Lilford

Energy & New Energy

Greg Bullock

Portfolio Manager Assistant

Alex FosterTitania HanrahanCourtney O’Shea

Product Strategists

Simon McClure

Business Manager

David HugginsSkye Macpherson

Agriculture

BlackRock Natural Resources Equities – Investment philosophy

We believe in:

• Identifying inefficiencies in the market to generate outperformance

• A mixture of bottom-up valuation with an overlay of macro themes

• Rigorous team debate and a high degree of collaboration

• Portfolio construction that correctly builds portfolios around high conviction ideas

• Risk management as an essential part of our daily routine

BlackRock 2015

“Through a combination of experience and fundamental

research we are able to identify investment

opportunities that generate long-term outperformance”

FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS ONLY 8

Hard Hat research

Our research is not confined to our desks

The Team travel the globe uncovering the best opportunities Team members may spend 4-6 weeks a year on research trips We have in excess of 700 company management meetings a year

Tom Holl in Peru

Olivia Markham in America

Evy Hambro in Australia

BlackRock, November 2015

Hannah Gray in Sierra Leone

Cailey Barker in Mexico


Market Outlook

Macroeconomic backdrop: Global economic growth expectations are improving

11FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS ONLY - FAEGLO-0250

6 month changes in leading indicators BLK Macro GPS suggests increasing upside surprises

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Synchronous improvements

BlackRock Investment Institute's Macro GPS combines traditionaleconomic indicators with big data signals and is pointing toupside to consensus growth forecasts, suggesting thateconomists are still playing catch-up to the reflationary outlook

Source: LHS – DataStream, February 2017. RHS – BlackRock Investment Institute and Consensus Economics, February 2017. Notes: The GPS shows where the 12-monthconsensus GDP forecast may stand in three months’ time. Consensus forecasts are measured by Consensus Economics. GDP stands for gross domestic product.

Macroeconomic backdrop: Concerns around China have eased following stimulus at the beginning of 2016


China Caixin composite PMI above 50 and trending upwards China new loans

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Source for both charts: DataStream, February 2017.

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Monthly new loans 3 month rolling average

Macroeconomic backdrop: Deflation concerns have faded


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Euro US dollar Pound sterling Japanese yen

Inflation expectations - 5Y 5Y inflation swaps

Source: DataStream, February 2017.

Synchronous upticks

Where are we in the mining cycle?


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ay-1

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Inde

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1. Mining sector peak in Q2 2011. Rally driven by China

stimulus post GFC

2. China’s economic growth rate slows and sector comes under significant pressure 3. Mining sector looks

like it’s reaching a bottom but takes

another leg lower as market fears a ‘hard

landing’ in China


Euromoney Global Mining Index

4. Mining sector faces perfect storm of China

fears plus concerns around debt levels

Current level

5. China stimulus eases market concerns and

commodities start to recover

6%

-27%

-2%-10%

9%

-9%

-19%

9%

-42%

13%

2%

-14%

4%

-18%

14%

6%

-35%

-19%-12%

16%

4%

-7%-14%

-26%

17%12%

0%6%

-26%

61%

-3% -3%

-47%-39%

83%

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-10%

-30%-34%

-60%

-40%

-20%

0%

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80%

100%

120%

140%

2012 2013 2014 2015 2016

Gold Nickel Aluminium Silver Copper Zinc Iron Ore Coking coal

227%

220%

Mined commodity prices surprised to the upside in 2016


Mined commodity performance


240%

Mining companies used commodity price strength to bolster balance sheets


Q1 2016 Q1 2017

Source: various news sources, February 2017. Reference to the names of each company mentioned in this communications is merely for explaining the investment strategy, andshould not be construed as investment advice or investment recommendation of those companies.

Significant improvement in free cash flow


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120%BH

P

Rio

Tin

to

Angl

o

Gle

ncor

e

Anto

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Hyd

ro

Ran

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Forte

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GR

OU

P

2017-2021E cumulative FCF as % of EV

Base case Spot

Source: Bank of America Merrill Lynch, February 2017. Reference to the names of each company mentioned in this communications is merely for explaining the investmentstrategy, and should not be construed as investment advice or investment recommendation of those companies.

Every week that commodity prices remain at current levels generates an additional $528m of EBITDA for Rio Tinto

Capital expenditure


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Capex in the mining sector slashed through the down-cycle Pain of the recent down-cycle still very fresh

Stock example: eeeeeeeeeeee

Capital discipline story remains in tact for now

Capital expenditure increasing in 2017 vs 2016 but not ramping significantly

Source: LHS - Jefferies, December 2016. RHS – Rio Tinto website, accessed February 2017. Reference to the names of each company mentioned in this communications ismerely for explaining the investment strategy, and should not be construed as investment advice or investment recommendation of those companies.

-66%

Fund Positioning and Performance

BGF World Mining Fund


Source: BlackRock Internal, February 2017. Reference to the names of each company mentioned in this communications is merely for explaining the investment strategy, andshould not be construed as investment advice or investment recommendation of those companies.

Top 10 holdings Sub-sector breakdown

Top 5 overweights at the stock level Top 5 underweights at the stock level

0%5%

10%15%20%25%30%35%40%45%50%

Fund Benchmark

Stock Sector Theme Fund Benchmark

Rio Tinto Diversified Deleverage 9.6% 8.9%

Glencore Diversified Deleverage 9.1% 7.1%

Vale Diversified Deleverage 8.1% 5.0%

BHP Billiton Diversified Deleverage 8.0% 8.5%

First Quantum Copper Growth 5.4% 1.3%

Teck Resources Diversified Deleverage 4.7% 2.1%

Newmont Mining Gold Deleverage 4.3% 2.8%

Lundin Mining Copper Deleverage 3.4% 0.7%

Newcrest Mining Gold Growth 3.4% 1.9%

Norilsk Nickel Nickel Growth 3.3% 1.5%

Stock Fund Benchmark Active

First Quantum Minerals 5.4% 1.3% 4.2%

Vale 8.1% 5.0% 3.1%

Lundin Mining 3.4% 0.7% 2.8%

Teck Resources 4.7% 2.1% 2.6%

Randgold Resources 3.3% 1.2% 2.1%

Stock Fund Benchmark Active

Anglo American 0.0% 3.6% -3.6%

Freeport McMoRan 0.0% 3.4% -3.4%

Barrick Gold 0.0% 3.2% -3.2%

Grupo Mexico 0.2% 2.8% -2.6%

Fortescue Metals 0.0% 1.4% -1.4%

BGF World Mining Fund portfolio breakdown


Source: BlackRock Internal, February 2017

Fund breakdown by country of listing Fund breakdown by risk region

Fund sensitivity to 10% moves in commodity prices Relative sensitivity to 10% moves in commodity prices

Global Africa ex South AfricaLatin America AustralasiaNorth America EuropeRussia CashSouth Africa Asia ex China

United Kingdom Canada USAAustralasia Latin America Europe ex UKCash South Africa

-0.4%

-0.2%

0.0%

0.2%

0.4%

0.6%

0.8%

Active

-2%

0%

2%

4%

6%

8%

10%

Fund Benchmark

Calendar year performance - USD

6.3%

-28.7%

-3.1%

-24.0% -23.1%-41.3%

52.3%

8.6%

-60%

-40%

-20%

0%

20%

40%

60%

since inception- annualized

2011 2012 2013 2014 2015 2016 YTD Feb 2017

BGF World Mining Fund

22

BGF World Mining Fund – Calendar Year Performance

Net total returns (%) in USD

YTD28 Feb 2017

Calendar year 2016

Calendar year 2015

Calendar year 2014

Calendar year 2013

Calendar year 2012

Calendar year 2011

Annualised since inception

(24 March 1997)]

BGF World Mining Fund 8.63 52.3 -41.3 -23.1 -24.0 -3.1 -28.7 6.3

EuromoneyGlobal Mining Constrained Weights Index TR

10.23 55.9 -41.1 -16.8 -25.1 0.3 -27.9 6.5

Source: BlackRock Internal, 28 February 2017

Share class performance is calculated on a Net Asset Value (NAV) basis, with income reinvested, net of fees. Past performance is no indication of current or future performance.

FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS ONLY - FAEGLO-0250

The following notes should be read in conjunction with the attached document: • 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.

• Past performance is not a guide to future performance and should not be the sole factor of consideration when selecting a product. All financial investments involve an element of risk. Therefore, the value of your investment and the income from it will vary and your initial investment amount cannot be guaranteed. 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.

• The BlackRock Global Funds (BGF) are domiciled in Luxembourg. BlackRock Asset Management Schweiz AG, Bahnhofstrasse 39, CH-8001 Zurich, is the Swiss Representative and State Street Bank GmbH, Munich, Zurich Branch, Beethovenstrasse 19, CH-8002 Zürich, the Swiss Paying Agent. The Prospectus, Key Investor Information Document, the Articles of Incorporation, the latest and any previous annual and semi-annual reports are available free of charge from the Swiss Representative. Investors should read the fund specific risks in the Key Investor Information Document and the Prospectus.

• Issued in Switzerland - The BlackRock Global Fund [BGF]*] is domiciled in Luxembourg. BlackRock Asset Management Schweiz AG, Bahnhofstrasse 39, CH-8001 Zurich, is the Swiss Representative and JP Morgan Chase Bank, National Association, Columbus, Zurich branch, Dreikönigstrasse 21, 8002 Zurich, the Swiss Paying Agent. From 15th February 2016 JP Morgan Chase Bank is replaced as the Swiss Paying Agent by State Street Bank GmbH, Munich, Zurich Branch, Beethovenstrasse19, CH-8002 Zürich. The Prospectus, Key Investor Information Document, the Articles of Incorporation, the latest and any previous annual and semi-annual reports are available free of charge from the Swiss Representative.

• Issued in the Netherlands by the Amsterdam branch office of BlackRock Investment Management (UK) Limited: Amstelplein 1, 1096 HA Amsterdam, Tel: 020 - 549 5200. Where a risk indicator is shown on this document it refers to the A2 share class of the Fund and date specified, please verify the risk of your share class on the Key Investor Information Document (essentiële beleggersinformatie; "EBI"). Higher or lower risk may apply to the other share classes of the Fund. Both BGF as well as BSF are UCITS (icbe) as defined in section 1:1 Financial Markets Supervision Act (Wet op het financieel toezicht; "FMSA"). BGF, BSF and their sub funds are listed in the register as defined in section 1:107 FMSA. Please refer to the Key Investor Information Document (essentiële beleggersinformatie; "EBI") for further information about BGF, BSF and their sub funds. The prospectus and EBI of BGF, BSF and their sub funds are available on BlackRock's website, http://www.blackrock.nl All financial investments contain a certain risk. The value of the assets managed by BGF, BSF and their sub funds may greatly fluctuate as a result of the investment policy and your initial investment is not guaranteed.

• Certain funds mentioned here are registered for distribution in Spain. Additionally, certain funds are registered for distribution in Portugal. In Spain, BlackRock Global Funds (BGF) is registered with the number 140 in the Comisión Nacional del Mercado de Valores de España (CNMV) and the Prospectus for each registered fund has been registered with the CNMV. In Portugal, certain share classes of certain BGF funds are registered with the Comissão do Mercado de Valores Mobiliários (CMVM) and the Prospectus for each registered fund has been registered with the CMVM. This document contains BLACKROCK INC. products or services that might be offered directly or indirectly within the Andorran jurisdiction, and it should not be regarded as solicitation of business in any jurisdiction including the Principality of Andorra.

• This is a financial promotion. For further information, the prospectus, Key Investor Information Document, annual report and semi-annual report can be obtained free of charge in hardcopy form from the German information centre: BlackRock Investment Management (UK) Limited, German Branch, Frankfurt am Main, BockenheimerLandstraße 2–4, 60306 Frankfurt am Main.The paying agent in Germany is J.P. Morgan AG, CIB / Investor Services – Trustee & Fiduciary, Taunustor 1 (Taunus Turm), D-60310 Frankfurt am Main.

• BlackRock Global Funds (BGF) is an open-ended investment company established and domiciled in Luxembourg which is available for sale in certain jurisdictions only. BGF is not available for sale in the U.S. or to U.S. persons. Product information concerning BGF should not be published in the U.S. It is recognised under Section 264 of the Financial Services and Markets Act 2000. BlackRock Investment Management (UK) Limited is the UK distributor of BGF. Most of the protections provided by the UK regulatory system, and the compensation under the Financial Services Compensation Scheme, will not be available. A limited range of BGF sub-funds have a reporting fund status A sterling share class that seeks to comply with UK Reporting Fund Status requirements. Subscriptions in BGF are valid only if made on the basis of the current Prospectus, the most recent financial reports and the Key Investor Information Document, which are available on our website. Prospectuses, Key Investor Information Documents and application forms may not be available to investors in certain jurisdictions where the Fund in question has not been authorised.

Important Notes


http://www.blackrock.nl/

• The fund can invest in mining shares which typically experience above average volatility when compared to other investments. Trends which occur within the general equitymarket may not be mirrored within mining securities.

• Investors in this Fund should understand that capital growth is not a priority and values may fluctuate and the level of income may vary from time to time and is not guaranteed.• The fund may make distributions from capital as well as income or pursue certain investment strategies in order to generate income. Whilst this might allow more income to be

distributed, it may also have the effect of reducing capital and the potential for long-term capital growth.• Compared to more established economies, the value of investments in developing Emerging Markets may be subject to greater volatility due to differences in generally accepted

accounting principles or from economic or political instability.• The fund may invest in smaller company shares which can be more unpredictable and less liquid than those of larger company shares.• The fund utilises derivatives as part of its investment strategy. Compared to a fund which only invests in traditional instruments such as stocks and bonds, derivatives are

potentially subject to a higher level of risk and volatility.• The use of covered call options in the fund will usually provide some limited protection to investors when stockmarkets are falling, but may also result in a lower return in a rising

market, when compared to the benchmark• The fund invests a large portion of assets which are denominated in other currencies; hence changes in the relevant exchange rate will affect the value of the investment.• The fund invests in a limited number of market sectors. Compared to investments which spread investment risk through investing in a variety of sectors, share price movements

may have a greater effect on the overall value of this fund.• Unless indicated the fund information displayed only provides summary information. Investment should be made on the basis of the relevant booklet together with the

Prospectus and Key Investor Information Document, which are available from the Manager.• 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 theBlackRock 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 Group funds and has not been prepared inconnection with any such offer.

• Subject to the express requirements of any client-specific investment management agreement or provisions relating to the management of a fund, we will not provide notice ofany changes to our personnel, structure, policies, process, objectives or, without limitation, any other matter contained in this document.

• Unless otherwise specified, all information contained in this document is current as at the date on the front page of this presentation.• No part of this material may be reproduced, stored in retrieval system or transmitted in any form or by any means, electronic, mechanical, recording or otherwise, without the

prior written consent of BlackRock.• For recipients in Hong Kong: This document is provided by BlackRock Asset Management North Asia Limited. The Fund mentioned herein has not been registered with the

Securities and Futures Commission for offering or distribution in Hong Kong. Accordingly, this material may not be circulated or distributed, nor may the Funds be offered or soldwhether directly or indirectly, to any person in Hong Kong other than to a Professional Investor as defined in the Securities and Futures Ordinance ("SFO") (Cap. 571 of the lawsof Hong Kong) and any regulations there under. Investments involve risks. Past performance is not a guide to future performance. This material is provided for informational oreducational purposes only and does not constitute a solicitation of any securities or BlackRock funds in any jurisdiction in which such solicitation is unlawful or to any person towhom it is unlawful. Moreover, it neither constitutes an offer to enter into an investment agreement with the recipient of this document nor an invitation to respond to it by makingan offer to enter into an investment agreement. Before making an investment decision, investors should read the relevant offering documents carefully including the investmentobjective and risk factors relating to the Fund.

• © 2017 BlackRock, Inc. All Rights reserved. BLACKROCK, BLACKROCK SOLUTIONS, iSHARES, BUILD ON BLACKROCK, SO WHAT DO I DO WITH MY MONEY and thestylized i logo are registered and unregistered trademarks of BlackRock, Inc. or its subsidiaries in the United States and elsewhere. All other trademarks are those of theirrespective owners.– THIS MATERIAL IS FOR DISTRIBUTION TO PROFESSIONAL CLIENTS AND SHOULD NOT BE RELIED UPON BY ANY OTHER PERSONS.

Important Notes cont’d
