BlackRock Emerging Markets D Acc

Emerging Markets

New for 2020. A diverse portfolio is delivering much-improved performance

BlackRock Emerging Markets has earned a place in our Rated Funds for 2020, after a year in which it was highly commended in Money Observer’s fund awards, despite the relatively short tenure of its managers. Andrew Swan and Gordon Fraser became co-managers of the fund in March 2017 when Swan, formerly head of Asian equities, became head of Asian and global emerging markets equities, and Fraser, a portfolio manager in the global emerging markets equity team, relocated to Hong Kong from London to work alongside Swan.

They have improved the fund’s performance significantly. The fund is now among the leaders in its peer group over one, three and five years. It replaces UBS Global Emerging Markets Equity in our line-up. The latter is also a consistent first-quartile performer, but it is one of a number of funds in this asset group focused on large Asian companies.

BlackRock Emerging Markets adds more diversity to the list. It is underweight large caps, where it had 48% of assets at the end of 2019, compared with 68% for the MSCI Emerging Markets index. It also has less in China than many competitor funds and the benchmark – 26% versus 32%. It has an overweight position in Brazil, its second-largest country weighting at 11%. Swan and Fraser loaded up on Brazilian firms just before an election-spurred rally in late 2018.

The fund has about 60 holdings and a well-dispersed top 10 that accounts for a third of assets. The managers continue to see greater divergence between emerging market regions and countries, and find this helps them find good opportunities at a stock and country level.

Narrative and ratings content all as of January 2020.

See all Money Observer rated funds
Name
BlackRock Emerging Markets D Acc
Manager
BlackRock Fund Managers Limited
Type
Unit Trust
ISIN
GB00B4R9F681
Sector
Global Emerging Markets
Launched
10/06/2011
OCF
0.97 %
Risk Rating
4
3 Year Sharpe
0.49
3 Year Alpha
5.68
Yield
1.5 %
Benchmark
MSCI EM NR GBP
The Fund aims to provide a return on your investment (generated through an increase in the value of the assets held by the Fund) over the long term (5 or more consecutive years beginning at the point of investment). The Fund invests at least 70% of its total assets in the equity securities (e.g. shares) of companies incorporated or listed on a stock exchange in emerging market countries. The Fund may indirectly invest in emerging markets by investing in American Depository Receipts (ADRs) and Global Depositary Receipts (GDRs), which are listed or traded on stock exchanges and regulated markets outside emerging markets. ADRs and GDRs are investments issued by financial institutions which give exposure to underlying equity securities.
Holding %
BlackRock ICS USD LiqEnvtlyAwr Agcy Inc 9.73 %
Alibaba Group Holding Ltd ADR 5.20 %
Tencent Holdings Ltd 4.04 %
Samsung Electronics Co Ltd 3.75 %
Taiwan Semiconductor Manufacturing Co Ltd 2.62 %
Hon Hai Precision Industry Co Ltd 1.98 %
Anhui Conch Cement Co Ltd Class H 1.91 %
ENN Energy Holdings Ltd 1.89 %
HDFC Bank Ltd 1.85 %
SJM Holdings Ltd 1.83 %
Region %
Asia - Emerging 47.30 %
Asia - Developed 23.15 %
Latin America 13.94 %
Europe - Emerging 10.75 %
Sector %
Consumer Cyclical 19.36 %
Financial Services 18.51 %
Technology 16.92 %
Communication Services 10.22 %
Energy 8.02 %
Industrials 7.78 %
Consumer Defensive 7.35 %
Basic materials 5.79 %
Name
BlackRock Fund Managers Limited
Address
EC2N 2DL, London, United Kingdom
UCITS
Yes
Legal Structure
Unit Trust

Managers

Gordon Fraser
Joined 03/29/2017

Gordon Fraser is a Managing Director of BlackRock, Inc. He has been Director since 2015. And he also serves as Vice President of BlackRock, Inc. from 2012 to 2015.

Data provided by Morningstar.

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You should be aware that prices may fall as well as rise and that the income derived can go down as well as up. When buying or selling any investment that fluctuates in price or value you may get back less than you invested. Past performance is not necessarily a guide to future performance.