Various Changes to BlackRock Global Funds
We have been notified by the Board of Directors of BlackRock Global Funds ("BlackRock") of various changes to a number of its its sub-funds. These changes will take effect 23 February 2024 (the “Effective Date”).
AVAILABLE IN OUR DEFINED FUND RANGE PRODUCTS
From the Effective Date, the investment strategy of the sub-funds detailed in the table below (the "Affected Funds"), will change to adopt Environmental, Social and Governance ("ESG") principles. The changes seek to better align the Affected Funds with the expectations of BlackRock shareholders and future clients in light of ongoing developments within the asset management sector, specifically in relation to ESG investing with the overall aim of seeking to provide a comprehensive, sustainable approach to investing.
| Affected Fund Name | Affected Fund ISIN | Products Affected in our Defined Fund Range |
|---|---|---|
| BGF Euro Bond A2 Acc EUR | LU0050372472 | Preference Hong Kong Preference |
| BGF Japan Flexible Equity A2 USD Acc | LU0212924517 | Preference |
| BGF United Kingdom A4 Inc GBP | LU0204064025 | Preference Hong Kong Preference |
| BGF United Kingdom A2 Acc GBP | LU0011847091 | Oracle Paragon Quantum (inc. Malaysia variant) Regular Savings Plan (inc. Malaysia variant) LifePlan Kudos |
| BGF United Kingdom A2 EUR Acc | LU0171293177 | Oracle Paragon Quantum (inc. Malaysia variant) Regular Savings Plan (inc. Malaysia variant) Kudos |
| BGF United Kingdom A2 Acc USD | LU0171293334 | Oracle Paragon Quantum (inc. Malaysia variant) Regular Savings Plan (inc. Malaysia variant) Kudos |
From the Effective date, the Affected Funds will change from Article 6 to Article 8 under the EU's Sustainable Finance Disclosure Regulation ("SFDR"). Article 8 funds promote social and/or environmental characteristics, invest in companies that follow good governance, give binding commitments but do not have a sustainable investment objective.
In order to achieve the ESG focused objectives, the Affected Funds will apply exclusionary screens pursuant to the BlackRock EMEA Baseline Screens. The Investment Adviser of the Affected Funds will adopt BlackRock’s proprietary "Fundamental Insights" methodology to identify companies appropriate for investment on the basis that they are "in transition" and focused on meeting sustainability criteria over time, while they would have otherwise been excluded by the exclusionary screens.
The Affected Funds will seek to maximise total return in a manner consistent with the principles of ESG focused investing.
In addition to the changes stated above, the BGF Euro Bond A2 Acc EUR fund will also provide that 90% of issuers of securities the fund invests in are ESG rated or have been analysed for ESG purpose.
For full details regarding the updated investment policies of the Affected Funds, please refer to the Appendix document opposite.
There will be no material change to the risk and return profile of the Affected Funds as a result of these changes.
AVAILABLE IN OUR OPEN-ARCHITECTURE PRODUCTS
A number of BlackRock funds which can be accessed through our portfolio bonds will also be subject to the changes detailed in the BlackRock notification opposite.
For more information on BlackRock Global Funds visit https://www.blackrock.com/lu/individual/about-us/about-blackrock