Generic Links

 

Welcome to RL360°'s

dedicated financial adviser website

For financial advisers only

Not to be distributed to, or relied on by, retail clients

Online Services Secure online services

Sign in | Register

Fund Merger - BlackRock Global Funds - Global Equity Fund

Following a recent review to rationalise its Global Funds range, BlackRock decided to merge its ‘BlackRock Global Funds – Global Equity Fund’ into the ‘BlackRock Global Funds – Global Opportunities Fund’ on 25 September 2015.

Impacts on
these closed products

Why BlackRock made the decision to merge the funds

BlackRock wanted to simply their fund range by providing a single global equity offering. By merging the two funds BlackRock believe investors will benefit from economies of scale as the portfolio management team, which currently manages both funds, will be able to focus on managing a single combined fund rather than two separate funds; both of which had very similar risk and return targets, investment objectives and policies.


Both funds invested at least 70% of their portfolio globally in equity securities and there was a large degree of commonality between the portfolio composition of both funds (approximately 90% of the holdings in both funds have been the same since the 4th quarter 2014).


Additionally, BlackRock believe that the name “Global Opportunities” better reflects the investment strategy employed by the portfolio management team which is based on a diversified and flexible approach to stock selection.


How the merger impacts policyholders

The merged fund featured in our guided architecture products Prosper and Preference, so has been removed from the fund ranges with immediate effect.


Preference policyholders invested in the merged fund have been automatically transferred into the BlackRock Global Funds - Global Opportunities Fund, and the fund will now form part of the Preference fund range for non-Hong Kong policyholders. Policyholders, or their appointed investment advisers, have been written to advising them of the merger and their options should they wish to choose an alternative fund from the range. Servicing advisers will receive a copy of the letter for their information.


With regard to Prosper, the merged fund has been removed from the fund range. We will not be adding the BlackRock Global Funds - Global Opportunities Fund to the Prosper fund menu.


The shareholder notification and letters issued can be viewed opposite.