BlackRock Commodity Strategies Fund
Balanced and Complete Exposure to Commodities
Global population growth and a rising middle class have led to explosive demand for commodities. However, most investors have limited exposure and may be missing half the opportunity set.
Thecombines both futures and equities to tap into the entire commodities value chain, offering additional diversification and enhanced opportunities for long-term growth.
To learn more about the features of the fund, please view the Investor Guide.
A Compelling Case for Commodities
- Long-Term Secular Trend: Historically, commodity trends have lasted for multiple decades, powered by significant structural changes.
- Favorable Supply/Demand Dynamics: Population growth and a rising middle class fuel demand while production constraints and finite resources hinder supply.
- Enhanced Diversification Potential: Historically, commodities have offered a buffer against stock and bond market volatility, inflation, interest rates and a weak US dollar.
Past performance does not guarantee future results. Source: Datastream. BlackRock analysis, data from 1/1/03 to 12/31/12.
A Balanced Approach to Investing in Commodities
Complete exposure to commodities requires balance. Not all commodities trade within the futures markets, yet equities alone cannot efficiently offer access to all commodities. Unlike strategies that take an "either/or" approach, the fund offers advantages from both commodity investing styles for an expanded opportunity set.
Active, Intelligent Portfolio Construction
The fund is designed to seek superior risk-adjusted returns from diversified sources, with the goal of capturing both current and longer-term trends throughout the entire commodities universe. Portfolio weightings will be dynamic and optimized to ensure that investors are not over-allocated to specific commodities, industries, sectors or regions—a typical strategy employed by traditional commodity funds.
Uniquely Equipped to Deliver Complete Commodities Exposure
The fund benefits from the combined expertise of two commodity investment teams that together manage more than $36 billion in assets. The equities team specializes in "hard hat" research, sending team members with backgrounds in geology, engineering and geophysics to more than 600 in-person company meetings per year. The futures team is an industry leader in commodity indices, derivatives and enhanced index strategies, leveraging the capabilities of a PhD-slevel quantitative research team.
Investor A: BCSAX
Investor C: BCSCX
Hypothetical commodities portfolio represents composite performance of 50% DJ-UBS commodities index and 50% allocation to 4 natural resource equity indices, annually rebalanced to target portfolio weights. Equity sector weights consist of 12% FTSE Gold Mines index, 33% HSBC Global Mining index, 45% MSCI World Energy index and 10% DAX Global Agribusiness. All indices total return USD indices. Index performance is shown for illustrative purposes only. It is not possible to invest directly in an index. This is not meant to represent the future of the BlackRock Commodity Strategies Fund.
IMPORTANT RISKS OF THE FUND
Past performance is no guarantee of future results. The fund is actively managed and its characteristics will vary. Holdings shown should not be deemed as a recommendation to buy or sell securities. Investing in commodity-linked derivatives and commodity-related companies may increase volatility. Stock values fluctuate in price so the value of your investment can go down depending on market conditions. Price movements are outside of the fund’s control and may be influenced by weather and climate conditions, livestock disease, war, terrorism, political conflicts and economic events, interest rates, currency and exchange rates, government regulation and taxation. International investing involves special risks including, but not limited to currency fluctuations, illiquidity and volatility. These risks may be heightened for investments in emerging markets. Investments in natural resources industries can be affected by variations in commodities markets, weather, disease, embargoes, political and economic developments, taxes and other government regulations. Futures trading can lead to large losses. Trading losses can sharply reduce the value of an interest in the fund. The fund may trade foreign futures contracts. Transactions on markets outside the United States may be subject to regulations that offer different or diminished protection. Commodity futures exposure is achieved through investments in, but not limited to, commodity-linked notes, swap agreements, commodity options, futures and options on futures.
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.