Emerging Markets Long/Short Equity Fund
Mitigating the Risks of Emerging Markets Investing
The seeks to provide equity-like growth with low volatility by taking full advantage of inefficiencies present in emerging markets.
To learn more about the features of the fund, please view the Investor Guide.
Growth Opportunities in Volatile Markets
- Reduced Market Volatility: While traditional equities offer higher growth potential, they also exhibit high volatility; a dedicated long/short equity strategy mitigates market volatility.
- Enhanced Diversification: A non-traditional long/short strategy offers the ability to profit from both positive (long) and negative (short) views, enhancing diversification
- Inefficient Markets: Active management opportunities are plentiful within emerging markets, where information is priced in slowly and reliable data is scarce.
The BlackRock Emerging Markets Long/Short Equity Fund
An Alternative to Traditional Equities
The BlackRock Emerging Markets Long/Short Equity Fund provides access to the numerous opportunities within emerging markets. Broadening the opportunity set through a dedicated long/short strategy (buying companies expected to increase in value, and shorting those expected to decrease in value), the Fund is designed to profit from both positive and negative views on companies with minimal dependence on overall market movements.
Uniquely Armed to Deliver a Non-Traditional Strategy
BlackRock offers the only dedicated long/short emerging markets equity mutual fund. Our specialized teams of experts embedded around the globe are focused on capturing, validating and analyzing data. Therefore, we have a distinct information advantage in selecting which emerging market companies to buy or short sell. And although short-selling is complicated and can result in greater losses, few teams in the industry have more experience doing it.
Seeking Equity-Like Returns with Less Volatility
Since its inception, the Fund has delivered more consistent returns with significantly more downside protection than the MSCI Emerging Markets Index. Importantly, these results were provided with low correlation to international stocks, US stocks and even bonds, providing investors with a valuable source of diversification and risk-adjusted returns.
Investor A: BLSAX
Investor C: BLSCX
Institutional: BLSIX
IMPORTANT RISKS OF THE FUND
Past performance is no guarantee of future results. The fund is actively managed and its characteristics will vary. Stock values fluctuate in price so the value of your investment can go down depending on market conditions. International investing involves risks, including risks related to foreign currency, limited liquidity, less government regulation and the possibility of substantial volatility due to adverse political, economic or other developments. The fund is subject to depositary receipt risks. The issuers of unsponsored depositary receipts are not obligated to disclose information that is, in the United States, considered material. The fund may engage in active and frequent trading of its portfolio securities which may result in short term capital gains or losses that could increase an investor's tax liability. The fund may actively engage in short selling, which entails special risks. If the fund makes short sales in securities that increase in value, the fund will lose value. Any loss on short positions may or may not be offset by investing short sale proceeds in other investments. Investing in derivatives entails specific risks relating to liquidity, leverage and credit that may reduce returns and/or increase volatility. Emerging markets are riskier than more developed markets because they tend to develop unevenly and may never fully develop. Investments in emerging markets may be considered speculative. Emerging markets are more likely to experience hyperinflation and currency devaluations, which adversely affect returns to U.S. investors. In addition, many emerging securities markets have lower trading volumes and less liquidity than developed markets.
You should consider the investment objectives, risks, charges and expenses of the fund carefully before investing. The Fund's prospectus contains this and other information about the Fund. The prospectus should be read carefully before investing.
Prepared by BlackRock Investments, LLC, member FINRA.
USR-1792