BlackRock Global Funds (BGF) Global Allocation Fund
A Foundation for Every Portfolio
A Unique Approach to Diversification
The BlackRock Global Funds (BGF) Global Allocation Fund offers investors a highly diversified core holding, typically invested in more than 700 securities in over 40 countries worldwide.
The Fund has a Platinum S&P Capital IQ Rating and a Gold Morningstar Analyst Rating1 as of December 31, 2012 (Class A).
Most investors understand that their portfolios need to be appropriately allocated among stocks, bonds and cash in order to temper volatility while pursuing return. In addition, diversification within asset classes — by type of security, sector and region — can further help mitigate unnecessary risk. The BGF Global Allocation Fund invests in global stocks, bonds and cash equivalents worldwide, and offers a foundation for every portfolio.
The chart below illustrates how the fund has performed relative to US and world equities and world government bonds through various market environments. The fund has provided more downside protection in bear markets, such as the technology bubble and global credit crisis, than US and world equities and has participated favorably in bull markets.
Cumulative Total Returns
Sources: BlackRock®; Bloomberg; ©2012 Morningstar, Inc. All Rights Reserved. All data as of 12/31/12. Basis: NAV (net asset value) prices with dividends reinvested, net of expenses. Time periods selected represent two of the worst global bear markets since the Great Depression and periods of significant recovery. * Relative to its peer group and other broad-based indices. †Benchmark index consists of the following: 36% S&P 500 Index, 24% FTSE World ex-US, 24% BofA/Merrill Lynch 5-Year Treasury Bond Index, 16% Citigroup Non-USD Government Bonds. ‡ FTSE World Index is a broad based capitalization-weighted index comprised of 2,200 equities from 24 countries in 12 regions, including the United States. § The MSCI World Index is a free-floating adjusted market capitalization index that is designed to measure global developed market equity performance. || Citigroup World Government Bond Index includes the most significant and liquid government bond markets globally that carry at least an investment grade rating. Currently, this includes all countries in the Citigroup EMU Governments Index (EGBI) and Australia, Canada, Denmark, Japan, Sweden, Switzerland, United Kingdom and the United States. Index weights are based on the market capitalization of qualifying outstanding debt stocks. It is not possible to invest directly in an index.
Past performance is not a guide to future performance and should not be the sole factor of consideration when selecting a product. The value of investments and the income from them can fall as well as rise and is not guaranteed. You may not get back the amount originally invested. The fund invests a large portion of assets which are denominated in other currencies; hence changes in the relevant exchange rate will affect the value of the investment. The fund typically invests in smaller company shares which can be more unpredictable and less liquid than those of larger company shares. Cumulative return represents total return over the period shown, non-annualized, and includes reinvestment of dividends during the period.
1Data as of 12/31/12. An S&P Capital IQ fund grading represents an opinion only and should not be relied on when making an investment decision. Past performance is not indicative of future results. Currency exchange rates may affect the value of investments. Copyright ©2012 by McGraw-Hill international (UK) Limited (S&P), a subsidiary of The McGraw-Hill Companies, Inc. All rights reserved. ©2012 Morningstar. All Rights Reserved. The information, data, analyses, and opinions contained herein (1) include the proprietary information of Morningstar, (2) may not be copied or redistributed, (3) do not constitute investment advice offered by Morningstar, (4) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (5) are not warranted to be correct, complete, or accurate. Morningstar shall not be responsible for any trading decisions, damages, or other losses resulting from, or related to, this information, data, analyses, or opinions or their use. The Morningstar Analyst Rating™ is subjective in nature and reflects Morningstar's current expectations of future events/behavior as they relate to a particular fund. Because such events/behavior may turn out to be different than expected, Morningstar does not guarantee that a fund will perform in line with its Morningstar Analyst Rating. Likewise, the Morningstar Analyst Rating should not be seen as any sort of guarantee or assessment of the creditworthiness of a fund or of its underlying securities and should not be used as the sole basis for making any investment decision.
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