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BLACKROCK STRATEGIC FUNDS (BSF)

Americas Diversified Equity Absolute Return Fund


April 2013

For use with institutional and professional investors only proprietary and confidential Scientific Active Equity 2013 BlackRock, Inc. All rights reserved

Scientific Active Equity (SAE) core principals

Total performance management


Return + Risk +Costs Emphasis on delivering consistent investment performance

Evidence-based return strategies


Research into investment strategies, not stocks What TYPE of stock outperforms? Systematically Identify and capture consistent fundamental drivers of return Test everything first Economic Intuition first - not a black box

Strong emphasis on risk control and portfolio construction


Maximize exposure to drivers of return that are predictable (alpha) Minimize exposure to drivers of return that are unwanted sources of risk

The fundamental law of active management


Emphasis on breadth, forecasting skill and implementation efficiency Leveraging people & technology

Focus on consistent and reliable absolute returns through a diversified blend of investment insights, implemented in a systematic way
For use with institutional and professional investors only proprietary and confidential Scientific Active Equity 2013 BlackRock, Inc. All rights reserved 3

SAE Absolute return capabilities


SAE, a pioneer in quantitative equity market neutral (Managing strategies since 1996)

Fund Offerings
London March 2002

Global Market Neutral Global Mid Horizon Global Emerging Markets Asia Europe
Tokyo May 2001

Americas

San Francisco April 1996

Hong-Kong / Singapore / Korea July 2003

Sydney August 2001

Approx. $18.4bn gross exposure in Equity Market Neutral Worldwide* $2.4bn gross exposure in SAE BlackRock Strategic Funds (BSF) *

*As at 31st December 2012. The funds gross exposure is given as: (long equity exposure + short equity exposure). For use with institutional and professional investors only proprietary and confidential Scientific Active Equity 2013 BlackRock, Inc. All rights reserved

The BSF Americas Diversified Equity Absolute Return Fund (ADEAR)


Pan American all-cap equity market neutral strategy
Targeting absolute returns with minimal correlation to underlying equity markets Forecast Alpha 10-12% (after fees), forecast volatility 10%

Experience of running components within a larger multi-strategy hedge fund


Established track record managing Large Cap and Small Cap stocks in the US, Canada and EM strategies

Focus on consistent and reliable outperformance through a unique blend of investment insights
Investors gain access to diversification across time horizon, market capitalisation and region Fundamental models exploit investment opportunities over a 1-12 month horizon Statistical model captures investment opportunities over horizons of less than 1 month Regional diversification from broader Americas exposure US ,Canada & Latin America

Emphasis on portfolio construction and unrivalled risk management


Bespoke return, risk and transaction costs models for each sub-strategy Market neutrality built in to the portfolio construction on daily basis returns have minimal correlation with underlying equity markets Portfolio risk is spread by taking small positions across a high number of stocks BSF ADEAR typically exploits long and short positions in as many as 2,000-3,000 stocks Gross exposure between 200% 600%; net exposure of 0%

Leverages the full resources of BlackRock and utilises the Scientific Active Equity Hedge Fund platform Fund launched 17th February 2012 and is up 7.1% net per annum since inception*

* Performance of the A USD share class which is net of fees from 17th Feb 2012 31st March 2013. For use with institutional and professional investors only proprietary and confidential Scientific Active Equity 2013 BlackRock, Inc. All rights reserved

BSF ADEAR team

Raffaele Savi
Head of Portfolio Management, Developed markets

Research

Portfolio management Travis Cooke

Strategy Michael Bishopp


Head of Strategy, Developed markets

Trading Dan Veiner


Head of Equity Trading, Americas Josh Taft Anand Lyer Freddy Huynh

Gerry Garvey Mike Lemmon Chris Rolvung

Senior Portfolio Manager

Sameer Parab Nelson Ramos Ali Jahansouz Tyler Hayes

Richard Mathieson David Wright Martina Jobst

As at 31st March 2013 For use with institutional and professional investors only proprietary and confidential Scientific Active Equity 2013 BlackRock, Inc. All rights reserved

Why invest in equity market neutral?


Equity market neutral focuses on alpha, not beta Beta is the return that can be attributed to the market, not the manager Reducing beta means that manager skill (alpha) counts more However returns should be less correlated with underlying equity markets and other managers
Absolute return fund Traditional relative return fund Index fund

Manager skill (Alpha)

Market exposure (Beta)

Source BlackRock: Illustration only For use with institutional and professional investors only proprietary and confidential Scientific Active Equity 2013 BlackRock, Inc. All rights reserved

Total performance management

Return forecasting
Derived from scoring and ranking stocks against a unique blend of investment insights or signals

Return

Risk forecasting
Enables the construction of highly diversified portfolios with limited exposure to common factor risks (e.g. country/Industry). Leaves stock selection position sizing to be driven by the trade off between forecasts of return and specific (idiosyncratic) risk

Cost forecasting
Forecast, measure and compare expected cost against forecast return. Up to date forecasts of fixed costs, liquidity, volatility and short borrow

Risk

Cost

Source: BlackRock For use with institutional and professional investors only proprietary and confidential Scientific Active Equity 2013 BlackRock, Inc. All rights reserved

Investment process
Forecasting returns across a 3,500 stock universe

Fundamental
Relative Value Quality Sentiment Themes Stat Arbitrage

Statistical
Trending Events Flow

US Large Cap Portfolio

US Small Cap Portfolio

Latin America Portfolio

Canada Portfolio

US Mid Horizon Portfolio

Portfolio construction
Risk forecasting & cost forecasting
Fund framework consistent with other SAE hedge funds
Fundamental insights used across a number of portfolios that are split regionally and across the cap spectrum in the US Separate mid-horizon portfolio for faster burn signals

BSF ADEAR also benefits from SAEs emphasis on portfolio construction, risk management and transaction cost forecasting
Source: BlackRock For use with institutional and professional investors only proprietary and confidential Scientific Active Equity 2013 BlackRock, Inc. All rights reserved

BSF ADEAR investment strategy


US Large Cap, US Small Cap, Canada & Latin America

Relative value

Quality

Stock Selection process updates view on over 3,500 stocks daily


Outperform

Sentiment

Themes

US Mid Horizon
Statistical

Neutral

Trending

Underperform

Events

Flow

Source: BlackRock For use with institutional and professional investors only proprietary and confidential Scientific Active Equity 2013 BlackRock, Inc. All rights reserved

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Understanding regional market dynamics across the Americas


Significant exposure to global macro trends Strong momentum effects driven by interrelationship between commodity prices and stock returns

Largest number of publicly traded companies, with deepest most liquid shares Moderate exposure to global macro trends. Greater focus on domestic economy Strong regulatory environment resulting in best disclosure and more robust information rich market in the world Opportunity exists to trade over-reaction to price sensitive information Utilise information across asset classes to exploit longer term trends Non obvious momentum effects exist at the micro level

Fragmented market structure Light regulatory environment Market slow to price in information pertaining to future earnings expectations Strong momentum effects exist over longer horizons

Source: BlackRock For use with institutional and professional investors only proprietary and confidential Scientific Active Equity 2013 BlackRock, Inc. All rights reserved

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Next generation momentum signals in the US


1st generation: Using past returns to predict returns
Uses a stocks own past returns to predict future returns Little evidence that momentum effects remain at the stock level Trading simple price momentum no longer adds value

2nd generation: Incorporating company linkages to predict returns


Utilizes company disclosed customersupplier linkages Investors beginning to factor these relationships into their forecasts Trading momentum effects based on customer-supplier linkages adds little value

3rd generation: Topic momentum


Exploits momentum effects across topics or clusters of stocks, Uses text analysis of regulatory business descriptions to seed topic exposures Trading momentum effects within these clusters proving to be powerful signal

Cumulative performance of SAE momentum signals

Source: BlackRock SAE research - Backtest results. 1/7/2007 31/12/2012 For use with institutional and professional investors only proprietary and confidential Scientific Active Equity 2013 BlackRock, Inc. All rights reserved

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Scientific techniques are critical to investment success in the digital age


Processing heavy volumes of data remains incredibly challenging and continues to expand rapidly
~4,000 daily brokerage reports
Source: BlackRock. Data as at 17/1/2013 13

4,000 broker reports published every day

350,000,000 daily tweets, many with content useful to investors Thousands of company reports, regulatory filings, earning calls

A scientific approach is effective in capturing information that drives stock returns


Ability to gather, process, and analyze massive amounts of information Scientific techniques are increasingly important to manage big data across businesses

Today the data we have available to make predictions has grown almost unimaginably large: it represents 2.5 quintillion bytes of data each day, enough zeros and ones to fill a billion books of 10 million pages each. Nate Silver, author of The Signal & the Noise

For use with institutional and professional investors only proprietary and confidential Scientific Active Equity 2013 BlackRock, Inc. All rights reserved

Exploit evolving US market through flow effects


Company fundamentals less important
More investors buying/selling for exposure rather than having superior earnings forecast
Emergence of ETFs and growth of passive funds have permanently altered the investment landscape
Increasing flows from active into passive strategies

Greater prevalence of high frequency trading

Multiple venues for execution


More granular data available as exchanges compete and regulations becomes more stringent
Source: EPFR. US equity flows Jan 2007 Feb 2012.

US Equity market share October 2007 and October 2012

US Equity market volume statistics

Source: Reuters, TAO database.

Source: NYSE. For use with institutional and professional investors only proprietary and confidential Scientific Active Equity 2013 BlackRock, Inc. All rights reserved

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Opportunities in Latin America


Investing in Latin America offers significant opportunity
Broad dispersion in company quality More pronounced behavioural biases Slow information diffusion Significant market segmentation Despite emerging nature of Latin America markets extensive coverage, liquidity and short availability exists BSF ADEAR makes use of c300 stock universe across Brazil, Mexico, Chile, Peru and Colombia
Direct exposure in over 225 names, the rest In ADRS Good short availability in Chile, Mexico and most significantly Brazil

Median Average Daily Volume of $3.9m across Latin America universe Benefits of a scientific approach in Emerging Markets Few managers employ a scientific approach

Analyst revision signal in Latin America: monthly IR decay

Traditionally EM strategies focus on country/industry allocation or take concentrated bottom up positions

Allows more meaningful cross border company comparisons


High levels of diversity of language, culture, business practices and management across countries

Plentiful data but of mixed quality


Data need to be gathered, cleansed and analysed

Strong focus on risk management BSF ADEAR leverages experience of SAE investing in Emerging Markets 6-year track record of producing alpha in Emerging Asia market neutral* Priority access to sell-side resources Experience of working to source short availability in Emerging Markets

Source BlackRock.. The graph shows the information ratio achieved by an analyst revisions signal in a BlackRock research environment over 0-6 months.

* Pan Asia Opportunities Fund.

For use with institutional and professional investors only proprietary and confidential Scientific Active Equity 2013 BlackRock, Inc. All rights reserved

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Its all about resources in Canada

Canadian serial entrepreneur companies cumulative average performance

Resource centric market (>60% of Market Cap) Exposure to Emerging Markets/China Growth and Developed Market Economic cycles Company valuations are driven by physical assets oil reserves, ore resources, grades Skill in finding resource assets is valuable and gets a premium Momentum effects are dominant as there is typically under-reaction to initial discoveries of resources

Source BlackRock.. Cumulative returns Jan 2000 Dec 2010. Cumulative average monthly performance of between 6 and 35 Serial entrepreneur companies identified by Blackrock For use with institutional and professional investors only proprietary and confidential Scientific Active Equity 2013 BlackRock, Inc. All rights reserved

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BSF ADEAR risk allocation


Blend of US Large Cap, US Small Cap, Canada, Latin America and Mid Horizon strategies offers un-correlated return stream Balanced allocation targeted at all times
Fundamental (US LC, US SC, Canada and Latin America) 50-80% Mid Horizon 20-50%

BSF ADEAR risk allocation 31st March 2013

Tactically allocating between fundamental and mid horizon strategies offers opportunities in alpha generation and risk management

Daily correlations Large Cap Small Cap Mid Horizon Canada Latin America

Large Cap 1 0.00 0.27 0.13 0.00

Small Cap

Mid Horizon

Canada

Latin America

BSF ADEAR risk allocation over time

1 0.13 -0.01 0.07 1 0.08 0.07 1 -0.04 1

Source: BlackRock. Daily returns from sub-strategy performance gross of fees from 1st April 2012 to 31st March 2013.

Source: BlackRock. Allocations may not sum to 100% due to rounding.

For use with institutional and professional investors only proprietary and confidential Scientific Active Equity 2013 BlackRock, Inc. All rights reserved

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Performance
Attribution February 2012 to December 2012* 12 month daily correlation - BSF ADEAR vs. S&P 500 Index**

Fund is up 7.1%* net since launch


Fund produced a net return of 10.3% in 2012 from February 17th launch
Each sub-strategy produced double digit returns over 2012 and made a significant contribution to the total return

Performance has suffered a downturn of 2% in 2013


US and Canada portfolios have given back some performance in 2013

*Source BlackRock Fund returns are net of fees and represent an investment in the $A2 share class of the fund . Q1 is from 17th February 2012. **Source: BlackRock & DataStream. Gross returns from ADEAR inception 1st April 2012 to 31st March 2013. For use with institutional and professional investors only proprietary and confidential Scientific Active Equity 2013 BlackRock, Inc. All rights reserved

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Appendix

ADEAR portfolio characteristics 31st March 2013


ADEAR largest industry exposures
234.9 673.0 667.5 287% -284% 557% 1,091 1,016 0.00 2.55% -2.68%

31st March 2013


NAV ($m) Long Value ($m) Short Value ($m) Long gearing Short gearing Gross exposure Number of long positions Number of short positions Funds forecast Beta Max Long Position (% of NAV) Max Short Position (% of NAV)

ADEAR largest country exposures Capital & risk Allocation


US Large Cap US Small Cap US Mid Horizon Canada Latin America Total 14.6% 29.6% 25.5% 19.9% 10.4% 100%

Source: BlackRock all data as at 31st March 2013

For use with institutional and professional investors only proprietary and confidential Scientific Active Equity 2013 BlackRock, Inc. All rights reserved

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BSF ADEAR performance

ADEAR Mar 2013 Feb 2013 Jan 2013 Q1 2013 2012 Q4 2012 Q3 2012 Q2 2012 Q1 2012 Since inception cumulative Since inception p.a. Risk since inception Sharpe ratio p.a. since inception -0.96% -1.81% 0.68% -2.09% 10.27% 3.84% 2.39% -0.57% 4.31% 7.97% 7.11% 5.61% 1.3

US Large Cap -2.21% -4.12% 0.79% -5.49% 11.20% 7.19% 1.17% -1.55% 4.15% 5.09% 4.55% 9.49% 0.5

US Small Cap 0.06% -2.36% -0.48% -2.77% 10.86% 4.75% 3.25% -1.38% 3.93% 7.79% 6.95% 8.41% 0.8

US Mid Horizon -2.17% -2.64% 3.50% -1.42% 12.62% 11.05% 1.00% -5.99% 6.81% 11.02% 9.81% 11.02% 0.9

Canada -0.24% -1.77% -0.21% -2.22% 16.93% -3.86% 9.15% 3.33% 7.83% 14.34% 12.75% 10.97% 1.2

Latin America -0.65% 1.88% 1.19% 2.42% 19.45% 2.71% -1.53% 12.35% 5.13% 22.34% 19.79% 7.32% 2.7

Source: BlackRock. ADEAR inception 17th February 2012. Net returns based on an investment in the A USD share class. Sub strategy returns are gross. Q1 12 returns are from inception.

For use with institutional and professional investors only proprietary and confidential Scientific Active Equity 2013 BlackRock, Inc. All rights reserved

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ADEAR liquidity profile

Percentage of the portfolio that can be liquated in given number of days

Source: BlackRock. Assumes the same holding profile as in the fund as at the 27h November 2012. We assume that 25% of the ADV in a stock can be used without incurring any abnormal transaction costs.

For use with institutional and professional investors only proprietary and confidential Scientific Active Equity 2013 BlackRock, Inc. All rights reserved

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Evolution of SAEs equity market neutral strategies

BSF EDEAR (Fund) EOS (Fund) European Mid Horizon (Fund) European Small Cap (Fund) European Large Cap (Fund)

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

BSF ADEAR (Fund) US Mid Horizon (Strategy) Emerging Markets (Strategy) Canada (Strategy) US Large Cap (Strategy) US Small Cap (Strategy)

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

A diversified strategy is important for successful alpha generation

For use with institutional and professional investors only proprietary and confidential Scientific Active Equity 2013 BlackRock, Inc. All rights reserved

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Product details
Product details Base currency Hurdle Liquidity Cut off Pricing Administrator/Custodian Main CFD trading counterparties Initial fee Annual management fee Performance fee Hurdle High water mark Bloomberg Ticker A Share Class Bloomberg Ticker D Share Class Portfolio characteristics Forecast return (net) Forecast volatility Gross exposure vs NAV Net exposure vs NAV Forecast Beta Number of long positions Number of short positions Largest individual stock position vs NAV Largest industry position vs NAV Largest country position vs NAV
Source: BlackRock For use with institutional and professional investors only proprietary and confidential Scientific Active Equity 2013 BlackRock, Inc. All rights reserved

USD 3 Month USD LIBOR Daily 12 pm CET 4 pm CET State Street (Luxembourg) Morgan Stanley, Goldman Sachs, BoAML Up to 5% 1.50% 20% Yes Yes BSADA2U LX/BSADA2E LX BSADD2E LX

12.5% 10% 200% - 600% 0% 0 1,000 1,500 1,000 1,500 </> +/- 5% </> +/- 5% </> +/- 5%

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BSF ADEAR: monthly returns

% 2013 2012

Jan 0.68

Feb -1.81 1.33

Mar -0.96 2.94

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

YTD -2.09

2.04

-1.20

-1.37

0.88

1.19

0.30

0.13

3.69

0.00

10.27

Source: BlackRock. ADEAR inception 17th February 2012. Net returns based on an investment in the A USD share class. Sub strategy returns are gross. For use with institutional and professional investors only proprietary and confidential Scientific Active Equity 2013 BlackRock, Inc. All rights reserved

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BSF ADEAR correlations with other BlackRock SAE hedge funds

EDEAR ADEAR 0.02

32 Capital 0.27

GAO 0.24

EMA 0.04

PAO 0.01

Source: BlackRock. Correlation are based on daily gross returns from 01/03/2012 to 28/02/2013 of ADEAR portfolio and other SAE hedge funds. Funds are European Diversified Equity Absolute Return, 32 Capital Ltd, Global Alpha Opportunities, Emerging Markets Alpha And Pan Asia opportunities. For use with institutional and professional investors only proprietary and confidential Scientific Active Equity 2013 BlackRock, Inc. All rights reserved

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Other strategies managed by ADEAR investment team


Strategy Inception 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 Cumulative return since inception Return since inception p.a. Realised vol p.a. since inception US Large Cap 01/03/2003 0.2 6.0 -1.5 0.8 8.4 9.0 -0.4 24.0 3.2 4.1 US Small Cap 01/03/2003 -1.6 8.4 11.4 4.8 -6.2 7.5 -7.3 7.2 6.6 7.4 -2.9 38.3 3.3 5.0 24.3 6.4 4.4 US Mid Horizon 01/09/2009 1.4 9.1 7.7 6.6 -2.1 Canada 01/03/2003 -0.8 6.8 11.8 5.9 -16.5 6.3 10.8 -0.3 12.7 10.5 6.4 62.8 5.0 6.3 47.8 13.1 4.2 Emerging Markets 01/01/2010 2.4 10.9 12.8 15.3

Source: BlackRock. Performance in USD to 28th Feb 2013. Past performance is not indicative of future results. Returns are based on similar strategies employed in an unlevered onshore US vehicle. The BSF ADEAR Fund will be subject to different dealing terms, fees and charges and will employ leverage that may affect performance and exposures. Returns are before management and performance fees. US Large Cap stock selection is employed within broader global strategies as part of the same onshore US vehicle from December 2009. Emerging Markets is a global strategy, not just Latin America.

Gross returns of other strategies managed using the same investment process reflect capabilities of ADEAR investment team
For use with institutional and professional investors only proprietary and confidential Scientific Active Equity 2013 BlackRock, Inc. All rights reserved

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Long horizon model


Intuitive and tested strategies with a 3-6 month investment horizon Relative Value
We identify stocks trading below fair value relative to industry peers based on:
Normalised fundamentals from company's balance sheets, income and cash flow statements Short term contrarian indicators

Quality
We assess the sustainability of company performance by identifying:
Companies which will continue to produce consistent earnings and cash flows Corporate finance decisions which are likely to benefit shareholders Companies with superior operational and capital efficiencies

Sentiment
We interpret market data to select stocks where:
Sell-side analysts believe the stock will outperform Other assets classes or other equity market investors have a favourable view of the stock Information from the supply chain or company earnings calls point to positive momentum for the stock

Themes
We look to exploit temporary market environments or lead-lag relationships:
Non-obvious momentum effects M&A activity

Source: BlackRock For use with institutional and professional investors only proprietary and confidential Scientific Active Equity 2013 BlackRock, Inc. All rights reserved

28

Mid horizon model


Intuitive and tested strategies with an investment horizon of less than one month Statistical
We identify patterns in stock returns and exploit instances when these break down:
Patterns between pairs of stocks or between single stocks and baskets where a relationship exists Single stock reversals

Trending
We identify trends that we expect to persist:
Analysts have an improving view of the company Exploit the lead-lag effect between linked companies Data from other financial markets can give an idea for the companys equity price

Events
Exploiting patterns in stock returns around key company events:
Insider deals Earnings announcements

Flow
We identify and exploit information and trade flow trends from:
The shorting activity of hedge funds Segmenting market volume by investor type

Source: BlackRock For use with institutional and professional investors only proprietary and confidential Scientific Active Equity 2013 BlackRock, Inc. All rights reserved

29

Portfolio construction integrating alpha risk and trade costs

Contribution to position and trade

Positive alpha drives a long position

A stocks common factor risks help minimize unintended bets size, industry, etc. here, the stock provides needed size exposure vs. benchmark

Each stocks specific risk reins in its target position

Transaction costs will pare down target size of trade

Alpha

Specific risk

Common risk

T-cost impact

Target position

Current position

Trade

Proprietary risk and transaction cost models ensure that expected risk, cost and return are balanced in an optimal fashion Portfolio optimization simultaneously trades off all stocks in the investible universe (3,500 stocks) Optimal portfolio has the highest possible forecast return (post transaction costs), given risk target of 10%
Source: BlackRock For use with institutional and professional investors only proprietary and confidential Scientific Active Equity 2013 BlackRock, Inc. All rights reserved

30

Disclaimer

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 may be exposed to finance sector companies, as a service provider or as counterparty for financial contracts. Liquidity in the financial markets has been severely restricted, causing a number of firms to withdrawn from the market, or in some extreme cases, becoming insolvent. This may have an adverse affect on the activities of the fund. The strategies utilised by the Fund involve the use of derivatives to facilitate certain investment management techniques including the establishment of both 'long' and 'synthetic short' positions and creation of market leverage for the purposes of increasing the economic exposure of a Fund beyond the value of its net assets. The use of derivatives in this manner may have the effect of increasing the overall risk profile of the Funds. Investors in this fund should understand that the Fund is not guaranteed to produce a positive return and as an absolute return product, performance may not move in line with general stock market trends as both positive and negative share movements affect the overall value of the fund. The Manager employs a risk management process to oversee and manage derivative exposure within the Fund. Past performance is not a guide to future performance and should not be the sole factor of consideration when selecting a product. All financial investments involve an element of risk. Therefore, the value of your investment and the income from it will vary and your initial investment amount cannot be guaranteed. Unless indicated the fund information displayed only provides summary information. Investment should be made on the basis of the relevant booklet together with the Prospectus, the Simplified Prospectus and relevant application forms which are available on request from the Manager. Please note that BlackRock will not make these documents available to investors in certain jurisdictions where the funds are not authorised for sale, except where local marketing laws otherwise permit. BlackRock Strategic Funds (BSF) is an open-ended investment company established in Luxembourg which is available for sale in certain jurisdictions only. BSF is not available for sale in the US or to US persons. Product information concerning BSF should not be published in the US It is recognised under Section 264 of the Financial Services and Markets Act 2000. BlackRock Investment Management (UK) Limited is the UK distributor of BSF. Most of the protections provided by the UK regulatory system, and the compensation under the Financial Services Compensation Scheme, will not be available. A limited range of BSF sub-funds have a distributor status A sterling share class that seeks to comply with UK Distributor Status requirements. Subscriptions in BSF are valid only if made on the basis of the current Prospectus, the most recent financial reports and the Simplified Prospectus which are available on our website. Prospectuses, Simplified Prospectuses and application forms may not be available to investors in certain jurisdictions where the Fund in question has not been authorised. Issued by BlackRock Investment Management (UK) Limited (authorised and regulated by the Financial Services Authority). Registered office: Drapers Gardens, 12 Throgmorton Avenue, London EC2N 2DL. Registered in England No. 2020394. Tel: 020 7743 3000. For your protection, telephone calls are usually recorded. BlackRock is a trading name of BlackRock Investment Management (UK) Limited. Issued in Switzerland by the representative office, BlackRock Investment Management (UK) Limited (London), Zurich Branch, Claridenstrasse 25, Postfach 2118 CH-8022 Zrich from where the Companys Prospectus, Simplified Prospectus, Articles of Association, Annual Report and Interim Report are available free of charge. Paying Agent in Switzerland is JPMorgan Chase Bank, National Association, Columbus, Zurich Branch Switzerland, Dreiknigstrasse 21, CH-8002 Zurich. For further information, the prospectus, simplified prospectuses, annual report and semi-annual report can be obtained free of charge in hardcopy form from the Austrian paying agent: Raiffeisen Zentralbank sterreich AG, A-1030 Vienna, Am Stadtpark 9. BSF has been registered on the official list of the Financial Supervision Commission (Komisja Nadzoru Finansowego) for distribution in Poland. Issued in Poland by the representative office BlackRock Investment Management (UK) Limited Oddzia w Polsce, Rondo ONZ 1, 00-124 Warszawa. Paying agent in Poland is Bank Handlowy w Warszawie SA, ul. Senatorska 16, 00-950 Warsaw, Poland. In Singapore, this material is issued by BlackRock Investment Management (Singapore) Limited (registration number: 198905382Z). This material may only be distributed to institutional investors (as defined in section 4A of the Securities and Futures Act, Chapter 289 of Singapore (the SFA) and accredited investors (as defined in section 4A of the SFA) and not to the retail public in Singapore. This material is for information purposes only and does not constitute an offer of shares in any of the BlackRock Strategic Funds. You should consider carefully whether the investment is suitable for you. Any opinions contained herein, which reflect our judgment at this date, are subject to change.

For use with institutional and professional investors only proprietary and confidential Scientific Active Equity 2013 BlackRock, Inc. All rights reserved

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