FOR PROFESSIONAL CLIENTS AND QUALIFIED INVESTORS ONLY
QUARTERLY
FUND
UPDATE
Q4 2016
BSF Multi-Manager Alternative Strategies Fund (BSF-MMA)
Access a unique blend of
alternative strategies in one
single investment
Key facts
Launch date:
28 January 2016
Fund AUM:
$368.3m
Base currency:
Fund performance
Share
class
Inception
date
December
Q4
ITD
USD
Class A2
28/1/16
0.64%
0.69%
2.17%
Currency shares
available:
USD, EUR, GBP,
CHF, SEK and others
on request
Class D2
2/3/16
0.70%
0.87%
2.73%
Class I2
20/4/16
0.72%
0.91%
2.82%
Fund range:
BlackRock Strategic
Funds (BSF)
Source: BlackRock. As at 31 December 2016.
All Inception to Date statistics are calculated using daily performance since inception.
Performance is shown on a net asset value basis, with gross income reinvested.
Performance is shown net of fees. Past performance is not a guide to future performance
and should not be the sole factor of consideration when selecting a product.
Structure:
Luxembourg
SICAV (UCITS)
Liquidity:
Daily, forward
pricing basis
Notice period:
2BD
Domicile/
Fund type:
Luxembourg UCITS
Portfolio manager:
Mark Woolley
presidential election. BSF-MMA reported positive results for the quarter
Key investment
professionals:
Mark Everitt,
Jeff Nickell,
Brendan Galloway
as well, with December performance being particularly strong.
● The fourth quarter was marked by record performance in risk-on assets
as markets quickly rebounded after the surprising result of the US
● The Fund’s credit exposure remained the largest contributor to return
throughout the quarter, mainly driven by positive idiosyncratic
developments in the energy and mining sectors as well as in a Greek
sovereign debt position.
● Equity strategies reported mixed results overall, as gains in the Energy,
Industrials and TMT sectors were partly offset by exposure to ratesensitive stocks and select positions in the Consumer sector
● The Fund’s global macro strategy was mainly negative for the period,
with losses stemming from short exposure to equity markets
Outlook
● Market volatility is rarely welcome. However, such
● Our focus continues to be on discovering skilled
environments serve as a reminder of the risks of a
hedge fund managers with the ability to consistently
beta-driven approach, and the potential advantages
execute strategies that we believe will be additive
of a steadier, diversified alpha-driven approach to
to the Fund over the long term.
the market. Rather than taking short-term tactical
bets on markets, this Fund continues to benefit
● The Fund added Marathon Asset Management to
from exposure to a diversified set of hedge fund
its portfolio of sub-advisors in October. Marathon
strategies, resulting in very low primary market risk
will invest in liquid credit investments with potential
exposures (such as equity and interest rate risk).
catalysts across a diversified set of industries and
geographies, applying rigorous bottom-up analysis
to evaluate entire capital structures whilst seeking
to mitigate downside risk.
Portfolio statistics
Sub-advisor allocation (%)
Manager Name
Benefit Street
Primary Strategy
Long/Short Credit
Primary Geographic Focus
North America
%
10.1%
Boussard & Gavaudan
Relative Value/Event Driven
Europe
19.8%
GLG
Event Driven
Europe
9.5%
GSA
Relative Value
Global
12.8%
Libremax
Long/Short Credit ABS
North America
11.9%
Marathon
Long/Short Credit
North America
8.1%
Pine River
Long/Short Equity
North America
14.0%
QMS
Global Macro
Global
13.9%
Top 10 holdings (%)
TELEFONICA PARTICIPACIONES SA
Asset type breakdown (%)
2.51
REGS 4.9 09/25/2017
BAYER CAPITAL CORPORATION BV
2.03
RegS 5.625 11/22/2019
CAS_14-C03 1M2
1.36
NCSLT_05-3W A51
1.15
VODAFONE GROUP PLC RegS 2
0.97
02/25/2019
AMSR_16-SFR1 E 144A
0.89
CONN_16-B A 144A
0.86
BALLY_14-1X C RegS
0.80
FREMF_16-KSO5 B 144A
0.79
HALLIBURTON
0.78
12.14
Cash & derivatives cover
282.95
Equity
5.53
Fixed income
-188.07
Other
-1.02
99.39
Strategy allocation
Relative value strategies
Fundamental long/short strategies
Convergence 13.50% n
Equity Selection 28.00% n
Statistical 4.30% n
Credit 23.90% n
Event driven strategies
Directional trading strategies
Distressed 7.30% n
Global macro 6.90% n
Merger acquisition 0.70% n
Managed futures 15.50% n
Source: BlackRock as at 1 January 2017.
Fees and charges
A2
D2
I2
Minimum initial investment
$5,000
$100,000
$10,000,000
Ongoing charge*
2.91%
2.16%
1.87%
Annual management charge
1.50%
0.75%
0.75%
Sub-advisors fee
Up to 1.00%
* The ongoing charges figure shown here is an estimate of the annualised charges. An estimate is being used because the Fund (or unit
class) was newly launched or it has been launched within the reported period.
Investment objective
replicate returns in UCITS-compliant vehicles.
The BlackRock Multi-Manager Alternative Strategies
Fund seeks to achieve an absolute return for investors
regardless of market movements over the long term.
UCITS hedge funds also offer limited choice, with
certain strategies over-represented. By using subadvisers instead of UCITS hedge funds, the team
can leverage its long-standing network of industry
contacts to expand the Fund’s investment universe,
Reasons to invest
offering privileged access to particular hedge fund
● A one-stop-shop solution for diversified
strategies which might be otherwise unavailable as
alternatives exposure: A daily-dealing, UCITS-
UCITS vehicles, all within a cost-effective, flat fee
compliant fund with low correlation to stocks and
structure.
bonds over a full market cycle. Seeks to generate
alpha from a broad set of alternative strategies
● Identifying high-quality hedge fund managers:
including event-driven, global macro and managed
With 20 years’ expertise in selecting hedge funds,
futures, long/short credit, long/short equity and
the team identifies managers with clear competitive
relative value.
advantage. A disciplined, bottom-up process
streamlines a universe of 8,000+ hedge funds into
● Unique access to a wider opportunity set: Hedge
fund managers have sometimes struggled to
140+ from which portfolios are built, with risk
management paramount throughout.
Monthly total return (%)
2016
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
SI
—
0.65
-0.63
0.01
0.18
0.83
0.68
-0.35
0.10
0.09
-0.04
0.64
2.17
Past performance is not a guide to future performance and should not be the sole factor of consideration when selecting a product.
Source: Morningstar, BlackRock, basis: Class A2 accumulation unit, dealing bid to bid prices. As at 31 December 2016. Performance is
shown on a net asset value basis, with gross income reinvested. Performance is shown net of fees.
Product strategists
Brianna Barrett
John Ware
Funmi Osiyemi
Want to know more?
+44 (0) 20 7743 3300
+31 20 549 5200
blackrockinternational.com
blackrock.nl
[email protected]
[email protected]
This material is for distribution to Professional Clients (as defined by the FCA Rules) and Qualified Investors only and should not be relied upon by any other
persons. Issued by BlackRock Investment Management (UK) Limited, authorised and regulated by the Financial Conduct Authority. Registered office: 12
Throgmorton Avenue, London, EC2N 2DL. Tel: 020 7743 3000. Registered in England No. 2020394. For your protection telephone calls are usually
recorded. BlackRock is a trading name of BlackRock Investment Management (UK) Limited. For further information, the prospectus, Key Investor
Information Document, annual report and semi-annual report can be obtained free of charge in hardcopy form from the Austrian paying agent: Raiffeisen
Zentralbank Österreich AG, A-1030 Vienna, Am Stadtpark 9. This is a financial promotion. For further information, the prospectus, Key Investor Information
Document, annual report and semi-annual report can be obtained free of charge in hardcopy form from the German information centre: BlackRock
Investment Management (UK) Limited, German Branch, Frankfurt am Main, Bockenheimer Landstraße 2–4, 60306 Frankfurt am Main. The paying agent in
Germany is J.P. Morgan AG, CIB/Investor Services – Trustee & Fiduciary, Taunustor 1 (Taunus Turm), D-60310 Frankfurt am Main. The risk indicator show
on this document refers to the A share class of the Fund. Higher or lower risk may apply to the other share classes of the Fund. Issued in the Netherlands by
the Amsterdam branch of ce of BlackRock Investment Management (UK) Limited: Amstelplein 1, 1096 HA Amsterdam, Tel: 020 - 549 5200. BlackRock
Strategic Funds (‘BSF’) is a UCITS (icbe) as defined in section 1:1 Financial Markets Supervision Act (Wet op het financieel toezicht; ‘FMSA’). BSF and its
sub funds are listed in the register as defined in section 1:107 FMSA. Please refer to the Key Investor Information Document (essentiële
beleggersinformatie; ‘EBI’) for further information about BSF and its sub funds. The prospectus and EBI of BSF and its sub funds are available on
BlackRock’s website www.blackrock.nl. All financial investments contain a certain risk. The value of the assets managed by BSF and its sub funds may
greatly fluctuate as a result of the investment policy and your initial investment is not guaranteed. Certain funds mentioned here are registered for distribution
in Spain. In Spain, BlackRock Strategic Funds (BSF) is registered with the number 626 in the Comisión Nacional del Mercado de Valores de España
(CNMV) and the Prospectus for each registered fund has been registered with the CNMV. BlackRock Strategic Funds (BSF) is an open-ended investment
company established and domiciled 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 reporting fund status
A sterling share class that seeks to comply with UK Reporting Fund Status requirements. Subscriptions in BSF are valid only if made on the basis of the
current Prospectus, the most recent financial reports and the Key Investor Information Document, which are available on our website. Prospectuses, Key
Investor Information Documents and application forms may not be available to investors in certain jurisdictions where the Fund in question has not been
authorised. The BlackRock Strategic Funds (BSF) Multi-Manager Alternative Strategies Fund is domiciled in Luxembourg. BlackRock Asset Management
Schweiz AG, Bahnhofstrasse 39, CH-8001 Zurich, is the Swiss Representative and State Street Bank GmbH, Munich, Zurich Branch, Beethovenstrasse 19,
CH-8002 Zürich, the Swiss Paying Agent. The Prospectus, Key Investor Information Document, the Articles of Incorporation, the latest and any previous
annual and semi-annual reports are available free of charge from the Swiss Representative. Investors should read the fund specific risks in the Key Investor
Information Document and the Prospectus. Overseas investment will be affected by movements in currency exchange rates. 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 pro le 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. The insolvency of any institutions providing services such as safekeeping of assets or acting as counterparty to
derivatives or other instruments, may expose the Fund to financial loss. Past performance is not a guide to current or future performance. 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. Changes in the
rates of exchange between currencies may cause the value of investments to diminish or increase. Fluctuation may be particularly marked in the case of a
higher volatility fund and the value of an investment may fall suddenly and substantially. Levels and basis of taxation may change from time to time. Any
research in this document has been procured and may have been acted on by BlackRock for its own purpose. The results of such research are being made
available only incidentally. The views expressed do not constitute investment or any other advice and are subject to change. They do not necessarily reflect
the views of any company in the BlackRock Group or any part thereof and no assurances are made as to their accuracy. This document is for information
purposes only and does not constitute an offer or invitation to anyone to invest in any BlackRock funds and has not been prepared in connection with any
such offer.
© 2017 BlackRock, Inc. All Rights reserved. BLACKROCK, BLACKROCK SOLUTIONS, iSHARES, BUILD ON BLACKROCK, SO WHAT DO I DO WITH
MY MONEY and the stylized i logo are registered and unregistered trademarks of BlackRock, Inc. or its subsidiaries in the United States and elsewhere.
All other trademarks are those of their respective owners. RSM4797 (Splash/310604/Aug16)