blackrock global dividend balanced process – global dividend foreign dividend yields have been...
TRANSCRIPT
BlackRock Global Dividend Balanced SMA
MKTG0418U-482800-1522291
Table of Contents
1. Introduction to BlackRock2. Investment Process3. Investment Team4. Target Portfolio Details
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.
MKTG0418U-482800-1522291
Allocations for Global Dividend Balanced
All accounts in the Global Dividend Balanced Strategy are managed to a 60% Global Dividend, 40% Fixed Income allocation.
60% Equity and 40% Fixed Income – Target Allocation
60%
40%
US
Global Dividend
Fixed Income
MKTG0418U-482800-1522291
Introduction to BlackRock
MKTG0418U-482800-1522291
BlackRock: Built for These Times
Many investors are asking:“How do I achieve the outcomes I need?”
BlackRock’s capabilities are built around our clients’
greatest needs:Client focus
• We partner with clients and their advisors to build portfolios
that reflect their objectives, risk tolerance and time horizons
Broader capabilities to help improve outcomes• We provide an industry-leading breadth of investment solutions
across active management, quantitative, and index strategies,
including our iShares® funds
• A dedicated group – Client Solutions – creates customized,
multi-asset solutions to address specialized needs
Global insights to uncover opportunities• Investment teams in over 301 countries share their best
thinking to gain the insights that can help change outcomes
Culture of risk management• BlackRock’s risk management team works with portfolio
managers while remaining as distinctly separate groups, so
their recommendations are impartial and portfolio managers
can make more informed decisions
1. As of March 31, 2018.
2. AUM in USD as of March 31, 2018.
Expertise Across Asset Classes
Active Equity5%
Passive Equity48%
Alternatives1
2%
Active Fixed Income
13%
Passive Fixed Income
17%
Multi-Asset8%
Cash Management
7%
Advisory0%
$6.32 trillion in assets as March 31, 20182
¹Includes commodity and currency mandates
MKTG0418U-482800-1522291
Investment Centers1
Beijing Kuala Lumpur Philadelphia Shanghai
Boston London Pittsburgh Singapore
Charlotte Melbourne Princeton Sydney
Dublin Munich San Francisco Taipei
Edinburgh New York Sao Paulo Tokyo
Frankfurt Newport Beach Seattle Toronto
Hong Kong Paris Seoul Zurich
Significant Presence in all Major Markets
Our global footprint enables a deep understanding of local markets / industries / regulatory dynamics• 25 primary investment centers worldwide facilitate access to major capital markets
• Global trading capabilities enable us to source assets and negotiate favorable terms for investors
• Valuable insights through access to management and perspective as an investor across the capital structure in thousands
of companies worldwide
Investment insight gained at a local level and shared globally maximizes investment opportunitiesfor our clients
• Investment platform promotes knowledge sharing across the firm; daily calls connect investment teams, linking the
insights from up to seven trading desks and over 100 portfolio teams across asset classes and geographies
• Over 13,000 employees, including more than 2,000 investment professionals, leverage the firm’s global resources
• Offices in over 30 countries provide local expertise and global experience to our diverse client base
1. BlackRock Primary Investment Centers as of March 31, 2018. Additional regional offices located throughout the continental US.
Data as of December 31, 2017.
MKTG0418U-482800-1522291
The BlackRock Organization
Investments FixedIncome
ActiveEquity Beta Multi-Asset Alternatives
Trading,Liquidity &
InvestmentsPlatform
Strategic ProductManagement Investment Stewardship BlackRock Investment
Institute
ClientBusinesses Retail iShares® Institutional BlackRock
Solutions®
Amer
icas
,EM
EA,A
PAC
Technology & BusinessOperations BPI Aladdin®
Risk & QuantitativeAnalysis
Finance Gov’t
RelationsMarketing &
CommsLegal &
ComplianceGlobal
StrategyHuman
ResourcesInternalAudit
Regions
MKTG0418U-482800-1522291
Extensive Resources Dedicated to Equities
1. AUM in USD as of March 31, 2018.
Broad platform, open access to research, and sharing ofinvestment ideas provide alpha generation opportunitiesacross equity portfolios
Deep capabilities: fundamental, systematic active, andindex on a single platform
• Fundamental Equity uses focused portfolio management to
actively manage style-specific portfolios built on BlackRock
proprietary research
• Systematic Active Equity seeks superior investment outcomes
through a stock selection process that aims to systemically find and
exploit pricing opportunities while actively managing risk and cost
• Index Equity uses the conscious and structured balance of risk,
return, and cost that seeks to offer an efficient, low-cost way of
obtaining controlled exposure to specific market segments
Straight-through processing and trading systems allowportfolio managers to focus on idea generation
Risk management embedded in BlackRock’s culture
• Risk analytics and technology internally developed since firm’s
inception
• BlackRock Solutions® (BRS) and Risk & Quantitative Analysis
(RQA) work together to support the equity platform
• RQA partners with investment teams to analyze portfolio risks and
improve investment process
Equity: $3.4tr1
Fundamental Systematic Active
GlobalGlobal Allocation
Large, Small, and All Cap
Emerging Markets
RegionalAsia Pacific
EAFE
Europe
Japan
Latin America
UK
US EquityLarge, Mid/SMID, Small
Core, Growth, Value
Sector-SpecificAll Cap and Small Cap Energy
Global Science & Technology
Health Sciences
Natural Resources
Long Only “Alpha Tilts”Global
International
Europe
US
Canada
Japan
Australia
Partial Short “130/30”Asia
Europe
US
Canada
IndexInstitutional Indexing
Developed Markets
Emerging Markets
Frontier Markets
Commodities Markets
REITs
Equity Hedged StrategiesAgriculture
Emerging Europe
Health Sciences
Energy (Global, Emerging)
European Opportunities
Health Sciences
Market Neutral
(Diversified, Pan Asia, Pan Europe,
Un-levered)
Middle East & North Africa
Swiss Equities
UK Emerging Companies
UK Equity
US Large Cap
US Middle Market Strategies
iShares
MKTG0418U-482800-1522291
Extensive Resources Dedicated to Fixed Income
1. AUM in USD as of March 31, 2018.
Culture of teamwork and information-sharing capturesthe power of BlackRock’s global resources in seeking togenerate alpha across fixed income portfolios
• Global platform driven by senior leadership
• Team structure facilitates sharing of local insights and ideas to help
benefit client portfolios
Wide breadth of strategies, styles, and capabilities• Broad product range across mutual funds, ETFs, commingled
funds, and separate accounts
Comprehensive global market coverage on asingle platform
• Daily communication among fixed income, liquidity, equity, real
estate, and credit research teams worldwide
• Technology platform facilitates sharing of ideas
Risk management embedded in BlackRock’s culture
• Risk analytics and technology internally developed since
firm’s inception
• BlackRock Solutions® (BRS) and Risk & Quantitative Analysis
(RQA) work together to support the fixed income platform
• RQA partners with investment teams to analyze portfolio risks and
improve investment process
Fixed Income Long-Only: $1.9tr1
Index Total Return (Enhanced and Active)Institutional Indexing
Aggregate
Global
Government
Government/Credit
Credit
Emerging Markets
MBS/CMBS/ABS
Inflation-Linked
International
iShares
US BondMulti-Sector
(Core Strategies/Intermediate Duration)
Investment Grade Corp/Long Duration
Mortgages
Short Duration
Financial InstitutionsOn Balance Sheet
Crossover
Strategic Cash
Stable Value
Leveraged FinanceHigh Yield/Distressed Debt
Bank Loan
Distressed Debt
Global/Non-DollarGlobal Bond (Aggregate, Credit)
Local Currency
(AUD, CAD, EUR, GBP, JPY)
Inflation-Linked
Liability-Driven
Emerging Market Debt
MunicipalsTotal Return
Income
Liability-Matching
Crossover
Strategic Cash
Long / ShortAsian Credit
Capital Structure
Diversified Relative Value
Fixed Income Global Opportunities
Global Credit
Global Diversified Alpha
Global Rates
iShares
MKTG0418U-482800-1522291
Investment Process
MKTG0418U-482800-1522291
Investment Process – Global DividendIs Your Portfolio As Global As It Could Be?
Source (left chart): BlackRock as of 12/31/2016. US Market Cap as a percentage of the MSCI All-Country World Index as of 3/31/18. Source (right chart): Simfund as of 3/31/18.
� Based on market capitalization, US equity investors are NOT aligned with global opportunities
� Expanding the investment universe provides even more value and growth opportunities
World Equity Markets US Equity Mutual Fund Assets
50%50% 70%
30%
USNon-US US
Non-US
MKTG0418U-482800-1522291
Investment Process – Global DividendDividend yield & dividend growth have driven over 90% of long-term returns
• High dividend yields should not be the sole focus
• Multiple expansion is one component of performance, but the combination of dividend yield and dividend growth have been the primary drivers over the long-term
Dividends and dividend growth matters around the world
Decomposition of average annual returns by country over the last 35 years
Source: SocGen. Total annualised return, representing the annualized rate at which capital has compounded over time, shown as of March 31, 2018. Based on local currency since 1980. It is not adjusted for inflation. UK, US, France, Germany, Australia, Canada and Japan represented by the corresponding MSCI country indices. Index performance is shown for illustrative purposes only and does not predict or depict the performance of any BlackRock fund. Past performance does not guarantee future results. It is not possible to invest directly in an index.
4.23.1 3.5 2.8
4.33.0
1.6
6.7
5.76.3
4.9
7.4
6.3
3.4
-0.2
1.2 0.0
0.2
-1.9
0.1
1.7
10.9
10.2 9.9
8.0
9.7
9.6
6.6
-4.0
-2.0
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
UK US France Germany Australia Canada Japan
Nom
inal r
etu
rns (
%)
Dividend Yield Dividend growth Multiple expansion Total annualised returns
MKTG0418U-482800-1522291
Investment Process – Global DividendDividends Dominate Returns Over Time
• Payment of a dividend is an important market signal; firms that grow their dividend are expressing confidence
• Focusing on dividend yield and dividend growth can align investors with longer-term outperformance
Source: Bloomberg. Shiller "Irrational Exuberance" Princeton University Press, 2000, 2005, updated. Returns from 1871 to March 2018. From Jun 1926 monthly dividend and earnings data are computed from the S&P. Prior to 1926 data is taken from Cowles and associates (Common stock Indexes). For further information please refer to http://www.econ.yale.edu/~shiller/data.htm. Index performance is shown for illustrative purposes only and does not predict or depict the performance of any BlackRock fund. It is not possible to invest directly in an index. Past performance does not guarantee future results.
Yield & Dividend Growth Account for the Lion’s Share of Returns Over Time
Dividend Yield
Dividend Growth
Change in Valuation
Contributions to return by time horizon for every 1-year and 5-year period since (1871-2017)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1y 5y
MKTG0418U-482800-1522291
Investment Process – Global DividendBuilding a growing income stream
• High and growing income streams signal financial strength and help to weather diverse market conditions
• Dividend yield and dividend growth are important components with regards to overall performance
Source: Thompson Reuters Datastream as of December 31, 2017. Annual Dividend Payment based on initial investment of $100,000 at December 31, 1969. The MSCI World Index is a broad-based measure of global stock performance that includes reinvestment of dividends. Past performance does not guarantee future results. You can invest in an index.
Over the long-term its not about current yield, its about generating income
An
nu
al
div
iden
d y
ield
(%
)A
nn
ual d
ivid
en
d p
aym
en
t ($)
Annual dividend yield and payments - Hypothetical $100k investment in MSCI World Index (dividends not re-invested)
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
0
1
2
3
4
5
6
19
69
19
70
19
71
19
72
19
73
19
74
19
75
19
76
19
77
19
78
19
79
19
80
19
81
19
82
19
83
19
84
19
85
19
86
19
87
19
88
19
89
19
90
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
MSCI World Annual Dividend Payment MSCI World - Dividend Yield
MKTG0418U-482800-1522291
Investment Process – Global DividendForeign dividend yields have been consistently higher
• Foreign equity yield advantage over 100 basis points more than domestic equities
• Dividend-paying equities are more plentiful overseas
Source: Thompson Reuters Datastream as of March 31, 2018. The MSCI EAFE Index is a broad-based measure of international stock performance while the S&P 500 Index is a broad-basedmeasure of domestic stock performance that includes reinvestment of dividends. The indices are unmanaged and cannot be purchased directly by investors. Index yields shown are forillustrative purposes only and do not predict or depict the performance of any Blackrock fund. It is not possible to invest directly in an index. Past performance does not guarantee future results.
Yield comparison between MSCI EAFE Index vs. S&P 500 Index 12/31/00–3/31/18
Historically, foreign equity yields have been higher than US equity dividend yields
0
1
2
3
4
5
6
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Div
idend Y
ield
(%
)
MSCI EAFE Index S&P 500 Index
MKTG0418U-482800-1522291
Investment Process – Global DividendDividend Growers and Initiators have Demonstrated a History of Strong Returns with Less Risk
* Dividends are not guaranteed and a company’s future ability to pay dividends may be limited.Source BlackRock. Data from 12/31/1978 through 12/31/2017. The investment universe is the 500 largest U.S. stocks by market cap. Dividend policy constituents are calculated on a rolling 12-month basis and are rebalanced monthly. Category returns are calculated on a monthly basis. Shown for illustrative purposes only. Past performance is not indicative of future returns. The Dividend Growers & Initiators category (“Dividend Growers” in the chart) represents performance for companies which either increased or initiated their dividend distribution. The No Change category represents performance for companies which pay a dividend but have not increased nor decreased their dividend distribution. The Nonpayers category represents performance for companies which do not pay a dividend. The Dividend Cutters & Eliminators category (“Dividend Cutters” in the chart) represents performance for companies which either cut or eliminated their dividend distribution. Index returns are for illustrative purposes only. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results.
Top number in each category represents growth of $100. Bottom number is a measure of risk represented by standard deviation.
� The payment of a dividend is an important market signal.
� Quality stocks that offer a competitive yield and superior dividend growth have historically provided lower volatility equityreturns
Risk and returns of the 500 largest U.S. stocks by dividend policy (1978-2015).
Dividend Cutters & Eliminators
Non-Dividend Payers
No ChangeDividend Payers
Dividend Growers &Initiators
$4,087
21.6%
$6,402
21.7%
$9,848
15.9%
$15,261
14.8%
MKTG0418U-482800-1522291
Investment Process – Global DividendMission Statement: Deliver Consistent, Long-Term Equity Growth
1 GLOBAL PORTFOLIO OF QUALITY MULTINATIONAL COMPANIES
2 PROVEN RECORD OF SUSTAINED DIVIDEND GROWTH TO DELIVER TOTAL RETURN
3 HISTORY OF LOWER VOLATILITY EQUITY RETURNS
Data as of March 31, 2018 unless otherwise noted. Source: Morningstar Direct and BlackRock.* Revenue exposure data calculated by BlackRock to December 31, 2018. § Up/down capture relative to the MSCI ACWI for the period 01 November 2011 – 31 March 2018.
Quality Has Led to Low Turnover:
Less than 25% p.a. turnover target
Long-Term Growth with Less Volatility:
82% upside capture§ with
72% downside capture §
60% International revenues*
25% Indirect EM exposure*
MKTG0418U-482800-1522291
Investment Process – Global DividendGlobal flexibility allows ability to help capitalize on regional dividend opportunities
� Fixed income markets, domestically and globally, no longer offer the yield opportunities that they once did
� Less than 20% of the global fixed income markets yield over 4%
The majority of global equity yields are attractive compared to Nominal Bond yields
Source: Bloomberg, BlackRock, MSCI. MSCI Country indices have been used to source the respective equity index yields. Data as of 31 March 2018. Investing involves risk. Past performance does not guarantee or indicate future results. It is not possible to invest directly in an index.
Across major markets, dividend yields have risen above government bond yields
1.4%
0.7%0.5%
0.0%
2.7%
4.5%
3.3% 3.2%
1.9% 1.9%
-1%
0%
1%
2%
3%
4%
5%
UK France Germany Japan US
10Y Nominal Bond Yield Dividend Yield
MKTG0418U-482800-1522291
Investment Team
MKTG0418U-482800-1522291
The Global Equity Team
As of 31 March 2018. Staff might be subject to change without notice.(##) indicates years of experience.
MKTG0418U-482800-1522291
Your dedicated portfolio managers
Stuart Reeve, Managing Director and portfolio manager, is the leader of the London-based
Global Equity team within the Fundamental Active Equity business of BlackRock’s Active Equity
Group. He is the co-manager for Global Dividend and Long-Horizon portfolios.
Mr. Reeve's service with the firm dates back to 2005, including his years with Merrill Lynch
Investment Managers (MLIM), which merged with BlackRock in 2006. At MLIM, Mr. Reeve had
primary responsibility for the Global Equity team's investments in food, beverage and tobacco. Prior
to joining MLIM in 2005, he was a Pan-European food, beverage and tobacco analyst with Credit
Agricole Asset Management. Mr. Reeve began his career with Touche Ross before joining Robert
Fleming Securities, where he worked as a Pan-European beverages analyst.
Mr. Reeve earned a BA degree, with honours, in economics and history at the University of East
Anglia in 1984.Stuart Reeve
Andrew Wheatley-Hubbard, CFA, Director and portfolio manager, is a member of the London-
based Global Equity team within the Fundamental Active Equity business of BlackRock’s Active
Equity Group. He is the co-manager for Global Dividend and Long-Horizon portfolios and is
responsible for covering the industrial and materials sectors, specifically the transport, commercial
services and paper & packaging industries. He is also Head of Research for the Global Equity team.
Prior to assuming his current role, Mr. Wheatley-Hubbard had worked for BlackRock in both London
and Hong Kong. In previous roles, he was responsible for covering Singapore and Global Real
Estate.
Mr. Wheatley-Hubbard earned BA and MEng degrees in engineering from Cambridge University.AndrewWheatley-Hubbard
MKTG0418U-482800-1522291
Target Portfolio Details
MKTG0418U-482800-1522291
Global Dividend Model Portfolio Data*Supplemental Information
Geographic Equity Allocation (as of 3/31/18)
0%
10%
20%
30%
40%
50%
60%
70%
0.0%1.5%8.0%1.1%12.7%21.5%55.2%MSCI All Country WorldIndex
10.0%0.0%0.0%0.0%11.0%37.4%41.6%Global DividendOtherLatin AmericaJapanAfrica/MideastAsia/PacificEuropeNorth America
*T he above model portfolio information is supplemental to the G lobal Dividend composite disclosure s lide located in the appendix.Investing involves risk. T he geographic equity allocation of the G lobal Dividend model portfolio reflects the current strategy for the equity portion of a fully discretionary, unconstrainedaccount and is not the result of actual trading. Actual portfolios may differ as a result of account s ize, client-imposed investment restrictions , the timing of client investments and market,economic and individual company considerations . It is not poss ible to invest directly in an index. P lease see Important Notes section at the end of the presentation for additional disclosureinformation.
MKTG0418U-482800-1522291
Global Dividend Model Portfolio Data*Supplemental Information
Equity Sector Allocation (as of 3/31/18)
0%
10%
20%
30%
40%
2.9%2.9%3.0%5.4%18.8%10.9%10.6%18.7%6.2%8.4%12.3%MSCI All Country WorldIndex
0.0%6.5%0.0%6.4%6.3%11.5%19.9%9.6%0.0%32.9%4.4%Global Dividend
UtilitiesTelecom.Services
RealEstateMaterialsInfo. Tech.Indst’lHealth
CareFinancialsEnergyConsumerStaples
ConsumerDiscr.
*T he above model portfolio information is supplemental to the Global Dividend composite disclosure s lide located in the appendix.Investing involves risk. T he sector allocation of the G lobal Dividend model portfolio reflects the current strategy for the equity portion of a fully discretionary, unconstrained account and isnot the result of actual trading. Actual portfolios may differ as a result of account s ize, client-imposed investment restrictions , the timing of client investments and market, economic andindividual company considerations . It is not poss ible to invest directly in an index. P lease see Important Notes at the end of the presentation for additional disclosure information.
MKTG0418U-482800-1522291
Global Dividend Model Portfolio Data*Supplemental Information
Top 10 Equity Holdings by weight (as of 3/31/18)
2.9Health C areS anofi S ponsored Adr3.1Information T echnologyC isco S ystems, Inc.3.1C onsumer S taplesUnilever Nv Adr3.1IndustrialsDeutsche P ost Ag S ponsored Adr3.2T elecommunication S ervicesR ogers C ommunications Inc. C lass B3.3C onsumer S taplesImperial B rands P lc S ponsored Adr3.4T elecommunication S ervicesT elus3.8Health C areJ ohnson & J ohnson4.0C onsumer S taplesAltria4.1C onsumer S taplesB ritish American T obacco P lc S ponsored Adr%SectorCompany
Equity Portfolio Characteristics (as of 3/31/18)
18.0x15.0xWeighted Harmonic P /E$129.4 billion$115.5 billionWeighted Average Market C ap
249548Number of Holdings2.4%3.5%Dividend Y ield
MSCI All Country WorldIndexGlobal Dividend
*T he above model portfolio information is supplemental to the Global Dividend composite disclosure s lide located in the appendix.Investing involves risk. T he portfolio holdings and characteris tics of the G lobal Dividend model portfolio reflects the current strategy for the equity portion of a fully discretionary, uncon-strained account and is not the result of actual trading. Actual portfolios may differ as a result of account s ize, client-imposed investment restrictions , the timing of client investments andmarket, economic and individual company considerations . T op 10 holdings do not represent all of the securities purchased, sold or recommended for any particular advisory client and in theaggregate may represent only a small percentage of an account's portfolio holdings . S ecurities are shown for illustrative purposes only and are not a solicitation to buy or sell any particularsecurity or invest in a particular sector. Holdings are subject to change. It is not poss ible to invest directly in an unmanaged index. P lease see Important Notes at the end of the presenta-tion for additional disclosure information.
MKTG0418U-482800-1522291
Global Dividend Balanced Composite Performance**Supplemental Information
Quarterly Performance (% returns, not annualized for less than one year)
-1.1-1.1Benchmark*
-3.0-3.0G lobal Dividend Balanced Composite (G ross)
-3.7-3.7G lobal Dividend Balanced Composite (Net)
12/31/189/30/186/30/183/31/18Y ear to date
Average annual total returns (%) through 3/31/18
5.96.2 5.39.2Benchmark*
6.15.75.45.2G lobal Dividend Balanced Composite (G ross)
3.02.52.32.0G lobal Dividend Balanced Composite (Net)
S ince Inception (5/30/11)5-Y ear3-Y ear1-Y ear
Historical performance (% yearly total returns)
-11.412.05.1-0.95.615.3Benchmark*
-8.811.64.52.84.613.5G lobal Dividend Balanced Composite (G ross)
-5.58.31.4-0.31.410.1G lobal Dividend Balanced Composite (Net)
2011201220132014201520162017
Data as of 3/31/18. **The above information is supplemental to Global Dividend Balanced composite presentation located in the Appendix. Investing involves risk. P ast performance does not guarantee or indicate future results. Net performance reflects deductions of the maximum annual fee of 3.00%. T he performance results from June 1, 2011 to the end of the most recent calendar quarter represent the composite of all fully discretionary, unconstrained S eparately Managed Account (S MA) program accounts, including one proprietary separate account that did not pay any fees (the "proprietary account"), managed in this style by the firm for at least one month. P lease see Important Notes for additional performance and fees, benchmark and composite disclosure information.*Benchmark - 60% MSCI All Country World Index and 40% BofA MLGov ’t Corp Rated a and Above Index.
MKTG0418U-482800-1522291
THE INFORMATION CONTAINED HEREIN MAY BE PROPRIETARY IN NATURE AND HAS BEEN PROVIDED TO YOU ON A CONFIDENTIAL BASIS, AND MAY NOTBE 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 advisory fees
(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 of earnings. Such
fees that a client may incur in the management of their investment advisory account may reduce the client's return. For example, assuming an annual 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-year period. The “net of fees’ performance figures
reflect the deduction of actual investment advisory fees but do not reflect the deduction of custodial fees. All periods longer than one year are annualized. When BlackRock
invests a client’s separate account in mutual funds or exchange traded funds, such funds may charge 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 of the separate account.
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.
Important Notes
MKTG0418U-482800-1522291
Important Notes (cont.)
RiskInvestment involves risk. Stock and bond values fluctuate in price so the value of your investment can go down depending upon market conditions. The two main risks related to
fixed income investing are interest rate risk and credit risk. Typically, when interest rates rise, there is a corresponding decline in the market 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 on mortgage- or asset-backed securities may be prepaid at any
time, which will reduce the yield and market value of these securities. Obligations of US Government 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 or loss 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 the alternative minimum tax. International investing involves risks related to foreign currency, limited liquidity, less government regulation,
and the possibility of substantial volatility due to adverse political, economic or other developments. These risks are often heightened for investments in emerging / developing
markets or smaller capital markets.
Model PortfolioInformation concerning portfolio allocations, holdings, and characteristics is representative of the model portfolio for this strategy and does not necessarily reflect an actual
account. 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.
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 individual issues/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.
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 other investment vehicles or
composite accounts managed by BlackRock has been included in this material and such performance information is presented by way of example only. No representation is
made that the performance presented will be achieved, or that every assumption made in achieving, calculating or presenting 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 presented herein by way of example. There is no guarantee that any forecasts made will come to pass.
.
MKTG0418U-482800-1522291
Important Notes (cont.)
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.
© 2018 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.
MKTG0418U-482800-1522291
Calendar Year
Pure Gross of Fee
Composite Return (%)
Net of Fee Composite Return (%)
Benchmark Return (%)4
Number of Portfolios
Composite Dispersion
(%)5
Composite3-Year
Annualized Standard Deviation
(%)1
Benchmark3-Year
Annualized Standard Deviation
(%)1
Total Assets at
End of Period
(US$mn)
Percentage of Firm Assets6
05/31/2011-12/31/2011
8.70 6.95 5.20 9 0.11 N/A N/A 3 <1
2012 8.78 5.52 11.37 37 0.15 N/A N/A 17 <1
2013 11.63 8.28 11.96 42 0.19 N/A N/A 15 <1
2014 4.53 1.39 5.05 55 0.09 5.83 6.36 27 <1
2015 2.81 -0.27 -0.85 54 0.21 6.58 6.57 25 <1
2016 4.58 1.44 5.64 79 0.02 6.47 6.64 38 <1
2017 13.50 10.10 15.27 219 0.02 5.81 6.16 93 <1
U-GDIBT
Historical Data: BlackRock Global Dividend Balanced SMA Composite
Past Performance is not indicative of future results.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.
MKTG0418U-482800-1522291
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, and iv) FutureAdvisor, Inc..
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 verifiedfor the periods 1 January 1993 through 31 December 2016. The verification reports are available upon request. Verification assesses whether (1) the firm has complied with all thecomposite 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 incompliance 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 USdollars and are asset-weighted since inception.
4. The benchmark index shown is the Global Dividend Income Balanced Taxable Benchmark. The Benchmark is composed of: 60% MSCI All Country World Index and 40% BofA MLGov’t Corp Rated a and Above 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. Compositedispersion 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 squareddifferences 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 thedispersion 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, shortingand 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 coversthe 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).
10. A complete list and description of all composites maintained by BlackRock and the related performance results are available upon request by emailing [email protected] information regarding policies for calculating and reporting returns is also available upon request.
Global Dividend Balanced SMA Composite: This investment strategy seeks current income and long-term capital appreciation through investment in equity and fixed incomesecurities. The equity portion invests in small and medium capitalization companies and companies domiciled in emerging/developing markets. The fixed income portion investsprimarily in government (excluding mortgage-backed), and investment grade corporate securities and are expected to have a duration of 4-7 years. More detailed information on thisstrategy is available upon request.
The performance results from 05/31/2011 to the end of the most recent calendar year represents the performance of all fully discretionary, unconstrained proprietary separate accountmanaged in this style for one month.
The creation date of the composite is 12/31/2015. New accounts and accounts that have changed their investment mandate to that of the composite are included in the compositeupon the completion of the first full month under management. Closed accounts and accounts that change their investment mandate are included in the composite through thecompletion of the last full month under management or the last full month under the old strategy.
Historical Data: BlackRock Global Dividend Balanced SMA Composite (Cont’d)
U-GDIBT
MKTG0418U-482800-1522291