ETP LANDSCAPE MONTHLY SNAPSHOT | SEPTEMBER 30, 2013
Transcription
ETP LANDSCAPE MONTHLY SNAPSHOT | SEPTEMBER 30, 2013
ETP LANDSCAPE MONTHLY SNAPSHOT | SEPTEMBER 30, 2013 The opinions expressed are as of September 30th, 2013 and may change as subsequent conditions vary. FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION What’s Inside BlackRock ETP Research Dodd Kittsley Head of BlackRock ETP Research Global Overview 3 Year-To-Date Overview 5 Beyond Raw Flows: Capturing Investor Sentiment 6 Reference Schedules Flows by Listing Region 7 Raj Seshadri Head of BlackRock ETP Insights ETP and Mutual Fund Monthly Flows 8 Largest Year-To-Date Fund Inflows and Outflows 9 For inquiries, contact ETPresearch@BlackRock.com ETP Flows by Exposure 10 ETP EQUITY FLOWS SWELL AS FED DELAYS TAPER1 The Federal Reserve’s surprise September no-taper announcement removed some risk of near-term volatility and took some pressure off rate-sensitive assets. As a result, stocks rallied for much of the month and investors moved heavily back into Developed Markets Equity funds. Investors also began to warm up to Emerging Markets Equities. Global ETP flows reached $35.0bn during the month – following record outflows in August – as investors again turned to the industry to execute their market views. Equity funds captured the majority of September flows with $28.7bn and year- to-date flows are now 46% higher than at the same point in 2012. • Developed Markets Equity flows were $23.4bn, about half in funds with US Equity exposure. Europe posted its fifth consecutive month of inflows – although headwinds to improving economic growth remain – and Japan ETPs continued to gather assets aided by Bank of Japan purchases. The Fed’s surprise decision not to taper also removed pressure from Emerging Markets Equity ETPs, leading to inflows of $5.3bn for the month – the first material inflow since January. Fixed Income ETP inflows totalled $6.6bn in September and year-to-date flows have nearly returned to their May peak, although they remain at the lowest year-to-date level since the credit crisis began in 2008. • Some bright spots within Fixed Income included High Yield and Emerging Markets Bond flows, which picked up with the Fed announcement stalling the recent rise in interest rates and flows could continue while rates remain range bound. About the ETP Landscape: Monthly Snapshot Report This report provides a summary of global ETP assets under management and asset flows for the most recent month-end period. Subscribe To receive the ETP Landscape series of reports, please subscribe via our website at: www.blackrockinternational.com/etflsubscribe FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION [2] Global Overview GLOBAL EQUITY CUMULATIVE ETP FLOWS1 2013 YTD Flows: $166.1bn Highlights (US$):1,2 Global ETP flows in September surged to $35.0bn on strength in Equities just one month after August’s record outflows of ($16.0bn). Notably, strengthening Emerging Markets Equity inflows provided a welcome boost during the month and may be a sign the tide has turned for a category that has been out of favor most of the year. September played out similarly to July in a number of ways for the Global ETP Industry. Both were characterized by accommodative Fed signals following periods of concern that tapering was imminent. As a result, both saw significant jumps in Equity flows and a return to Fixed Income inflows aided by a pause in the upward trajectory of interest rates. DM Equity The main difference versus July was the September pickup in Emerging Markets exposure flows. Both Emerging Markets Equity and Emerging Markets Fixed Income funds gained traction during this month gathering $5.3bn and $0.9bn, respectively. EM Equity GLOBAL FIXED INCOME CUMULATIVE ETP FLOWS1,2 2013 YTD Flows: $25.5bn Global Equity inflows in September reached $28.7bn, eclipsing $25bn for the fourth time in 2013. Asset gathering picked up steam during the middle of the month, spurred by the Fed’s decision, and then slowed in the final week on uncertainty about future Fed direction and concern over US debt ceiling negotiations. Developed Markets Equities took in $23.4bn concentrated in US exposures where inflows of $12.8bn were clustered in Large Cap with $8.9bn and Sectors (primarily growth sectors such as Industrials and Technology) with $3.7bn. TAPER POLICY IMPACT ON GLOBAL ETP FLOWS1 2013 Recent Weekly Trends May 22nd First Taper Comments June 19th Second Taper Announcement July 10th Bernanke Qualifies his Position Sept 18th Fed Decision – No Taper Markets anticipate modest taper 20 10 0 DM Equity EM Equity FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION Fixed Income Sep 16-20 Sep 9-13 Jul 8-12 May 20-24 Jun 17-21 -10 May 6-11 Net F low s ( U S$bn) Period of Uncertainty Commodities & Others [3] Global Overview (cont’d) Highlights (US$):1,2 SEPTEMBER RESULTS AT A GLANCE1 (US $billions) Pan-European Equity ETP flows remained strong at $5.3bn, beating the record set last month on news of reviving economic growth in the region. Japanese Equity funds maintained momentum with $2.8bn on continued asset purchases by the Bank of Japan and have now experienced 19 months of inflows in a row. September 2013 August* 2013 December September 2012 2012 Monthly Flows 35.0 (16.0) 38.7 45.1 Assets 2,226 2,117 1,944 1,853 # of ETPs 4,937 4,918 4,759 4,721 While Developed Markets Equity inflows were large, their composition indicated investors remain cautious. The Emerging Markets inflows in September on the other hand may embody a nascent move back into a riskier asset class. *Aug-2013 restated with additional Asia Pacific data The MSCI Emerging Markets Equity Index is still down 6.4% this year but up 6.2% in September alone, the largest gain since January 2012.3 It is still too early to call a trend, but the case for Emerging Markets holds promise. Valuations are favorable relative to Developed Markets Equities and a string of recent data indicates growth prospects in China could be improving and may reach the government’s target of 7.5% for 2013. GLOBAL 13-MONTH ROLLING FLOWS1 2013 YTD Net Flows: $162.0bn (US$bn) Emerging Markets Equity flows this month were highly focused in broad funds but Emerging Markets Country funds also saw an uptick with China and India together gathering $1.0bn. China flows were aided by local new product launches. Fixed Income flows returned to positive territory following redemptions in August. Short-Maturity Fixed Income ETP flows continued, totalling $3.1bn led by Floating Rate, Bank Loans and Short-Term High Yield funds. High Yield ETPs overall gathered $2.1bn and continue to benefit from the pullback in interest rates in the wake of the Fed’s decision to delay tapering. 10-Year Treasuries are now yielding 2.61%, largely unchanged since early July. 5 Emerging Markets Fixed Income was also helped by the pause in rates, adding $0.9bn largely from Europe-listed ETPs. It was the first material flow for the category since spring. Money Market mutual funds have drawn in $60bn since May when uncertainty over Fed tapering began in earnest. 4 FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION [4] Year-To-Date Overview GLOBAL ETP YTD FLOWS BY EXPOSURE1 (US$bn) Jan-Sep 2013 Jan-Sep 2012 Annual 2012 GLOBAL ETP CUMULATIVE FLOWS1 YTD Flows in 2013: $162.0bn CUMULATIVE EQUITY ETP FLOWS1 CUMULATIVE FIXED INCOME ETP FLOWS1 YTD 2013 Equity Flows: $166.1bn YTD 2013 Fixed Income Flows: $25.5bn FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION [5] Beyond Raw Flows: Capturing Investor Sentiment Overview6 For US-listed Equity ETPs — which make up 82% of global Equity ETP YTD flows — the BlackRock Equity Risk Sentiment Measure dropped in September from a 10 month high but remained above its 1-year moving average. Flows into broad-based funds with lower than average realized return volatility – led by SPY (SPDR S&P 500) and IWM (iShares Russell 2000) – gathered a greater portion of the sizeable September flows than the more volatile funds, which saw the greatest contribution from Emerging Markets funds. In Fixed Income, risk sentiment has been indicating since early in the year that investors are becoming more risk tolerant. In September the risk sentiment level declined slightly, but it remains just above the 1-year moving average. Background and Methodology Over longer horizons, our research shows that Risk Sentiment exhibits greater persistence than raw flows alone, consistent with the idea that the composition of flows is indicative of investor sentiment and growing ETP adoption. To better understand and capture shifts in investor sentiment, we developed the BlackRock Risk Sentiment Measure6 using net inflows into all US-listed ETPs and the daily price volatility since 2005. The measure is computed by asset class (e.g., Equity, Fixed Income) and for different time periods (weekly, monthly, etc.) to reflect shifts in risk appetite that are harder to discern from raw flow data. To compute risk sentiment within a particular asset class, we sort ETPs into two groups, high and low risk, based on their 60-day realized return volatility. For example, currently the high risk group in US equities includes Small Cap Equities and ETPs that track Gold Miners while the low risk group includes Large Cap Equities and Preferred Stock ETPs. Within the Fixed Income, High-Yield Bond funds would fall into the high risk group while Short-Term Treasury funds are in the low risk group. Risk sentiment is then defined as the total dollar inflows/outflows for the riskier group of ETPs less those of the safer group, scaled by the dispersion in flows across the sample. Zero on the scale below represents the 1-year moving average. It’s important to note the BlackRock Risk Sentiment Measure considers risk sentiment excluding cash. EQUITY RISK FLOW SENTIMENT MEASURE 60 Risk Sentiment 40 More risk tolerant 20 0 (20) (40) More risk averse (60) J F M A M J J A S O N D J F M A M J J A S FIXED INCOME RISK FLOW SENTIMENT MEASURE Risk Sentiment 60 40 More risk tolerant 20 0 (20) More risk averse (40) (60) J F M A M J J FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION A S O N D J F M A M J J A S [6] Flows By Listing Region Highlights (US$):1 Funds listed in the US account for 70.3% of global ETP assets Asia Pacific has the highest asset growth rate so far this year, followed by the US YTD 2013 flows into US-listed products represent 81% of the Europe has the highest number of products with 2,135 global total compared to 71% for full-year 2012 ETP assets in the US have grown 16% YTD SEPTEMBER NET FLOWS BY LISTING REGION1 ASSET GROWTH RATES AND # OF ETPs1 (# ETPs) Bubble size = Assets ($bn) 80 2013 Growth in # ETPs 70 US $1,566 60 50 $162 Asia Pacific 40 Europe $395 30 20 10 0 Latin America $11 -10-10% Canada $58 -5% -20 0% 5% 10% 15% 20% 2013 AUM Growth LISTING REGION VIEW1 Net Flows By Listing Region Sep 2013 FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION YTD 2013 Sep 2013 Assets % Asset Market Share Number of Products [7] ETP and Mutual Fund Monthly Flows Highlights (US$):1,4 There are similar patterns in mutual fund and ETP flows this year, particularly in Developed Markets (DM) Equities and Emerging Markets (EM) Equities. DM Equity mutual fund flows have shifted from outflows in 2012 to inflows in 2013 with $107.8bn YTD. DM Equity ETPs attracted larger YTD inflows of $173.0bn. Emerging Markets Equity flows started strong in 2013 for both mutual funds and ETPs, then shifted course. ETP flows rebounded in September, but remain in negative territory YTD with ($6.9bn) vs. a modest net positive for mutual funds of $0.9bn. Fixed Income flows had been steady for mutual funds and ETPs in the first 5 months in 2013. ETPs have since seen some volatility, but remain positive YTD at $25.5bn. Mutual fund outflows have continued since June when concerns about Fed tapering arose and are now negative YTD at ($2.9bn). Money Market mutual fund outflows totalled ($79.8bn) YTD. After reaching a low point of more than ($150bn) of outflows in June, investors have parked more than $75bn in these funds over the last three months. Money Market ETPs are not shown as a comparable because these funds have minimal assets which are included in the Fixed Income asset class. DEVELOPED MARKETS EQUITY FLOWS1,4 EMERGING MARKETS EQUITY FLOWS1,4 200 60 173.0 150 116 55 50 107.8 100 40 50 30 0 (50) 20 (100) 10 (150) 0 (200) (206) (250) J F M A M J J A S O N 14 0.9 (6.9) (10) (20) D J F M A M J J A S O N D MONEY MARKET MUTUAL FUND FLOWS1,4 FIXED INCOME FLOWS1,4 50 500 450 400 350 300 250 200 150 100 50 0 (50) 5 435 0 (50) (79.8) (100) 70 (150) 25.5 (2.9) J F M ETP Flows 2013 A M J J A S O MF Flows 2013 FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION (200) N D J F ETP Flows 2012 M A M J J A S O N D MF Flows 2012 [8] Largest Year-To-Date Fund Inflows and Outflows ETPs as of September (US$mn)1 ETPs as of September (US$mn)1 FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION Bloomberg Ticker 2013 YTD Inflows Sep-13 Assets Bloomberg Ticker 2013 YTD Outflows Sep-13 Assets [9] ETP Flows by Exposure: Developed Equity Exposure (US$mn) 1 Large Cap Mid Cap Small Cap Micro Cap US Size and Style Total Market Extended Market Preferred Stock US Size and Style Total Basic Materials Consumer Cyclicals Consumer Non-cyclicals Energy Financials Health Care US Sector Industrials Real Estate Technology Telecommunications Utilities Theme US Sector Total US Strategy US Total Canada Equity North America Regional Equity North America Total Large Cap Mid Cap Pan European Small Cap Size and Style Total Market Pan European Size and Style Total Pan European Sector Pan European Strategy Pan European Total Germany U.K. Country Switzerland France Others Europe Single Country Total Europe Total Asia-Pacific Regional Country Asia Pacific Total Broad-Based Global /Global ex-US Developed Equity Total FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION September 2013 Net Flows 2013 YTD Net Flows % of YTD Flows Assets 8,897 (2,363) 2,709 (291) 67 (542) 8,476 596 677 (214) 668 (425) 586 1,225 (192) 799 (37) (94) 84 3,673 671 12,820 567 21 13,409 1,085 43 283 3,623 29,797 6,653 17,083 271 8,121 809 (831) 61,904 699 2,371 (680) 4,157 6,232 4,155 3,185 1,995 5,301 (103) (141) 382 27,553 11,461 100,918 (561) 776 101,133 2,973 212 622 8,103 18.4 4.1 10.5 0.2 5.0 0.5 (0.5) 38.2 0.4 1.5 (0.4) 2.6 3.8 2.6 2.0 1.2 3.3 (0.1) (0.1) 0.2 17.0 7.1 62.3 (0.3) 0.5 62.4 1.8 0.1 0.4 5.0 416,601 72,238 83,618 1,015 57,887 3,429 13,395 648,183 6,216 14,588 8,251 31,160 28,499 21,864 11,132 28,568 22,051 977 8,157 1,166 182,629 64,155 894,966 32,479 7,522 934,967 36,703 1,010 2,191 36,987 18.7 3.2 3.8 0.0 2.6 0.2 0.6 29.1 0.3 0.7 0.4 1.4 1.3 1.0 0.5 1.3 1.0 0.0 0.4 0.1 8.2 2.9 40.2 1.5 0.3 42.0 1.6 0.0 0.1 1.7 231 49 69 4 62 2 5 422 14 18 12 43 37 28 17 23 27 5 12 8 244 57 723 85 20 828 79 9 12 68 5,035 11,890 7.3 76,837 3.5 166 293 (70) 5,258 (1,935) 277 297 12,484 (2,049) 0.2 0.2 7.7 (1.3) 12,811 2,914 92,617 40,812 0.6 0.1 4.2 1.8 150 21 339 63 % of Assets # ETPs 642 3,055 1.9 19,094 0.9 50 (49) (118) 165 (831) 0.1 (0.5) 9,956 5,414 0.4 0.2 23 19 177 1,298 0.8 9,373 0.4 66 (1,283) 1,636 1.0 84,650 3.8 221 3,975 309 2,558 14,121 544 30,503 8.7 0.3 18.8 177,266 16,173 132,903 8.0 0.7 6.0 560 59 231 2,867 31,047 19.2 149,076 6.7 290 3,163 23,413 26,691 172,992 16.5 106.8 178,989 1,440,299 8.0 64.7 447 2,125 [ 10 ] ETP Flows by Exposure: EM Equity, Fixed Income, & Commodities Exposure (US$mn) Broad EM 1 Broad Emerging Markets Broad Frontier Markets Broad EM Total Regional EM Brazil China India Russia EM Single Country South Korea Mexico Others EM Single Country Total Emerging Markets Equity Total Equity Total Broad/Aggregate Govt/Corp Emerging Markets Municipal Government - Sovereign Government - US Treasury Government Total Fixed Income Inflation High Yield Corporate Investment Grade Corporate Money Market Mortgage Others Fixed Income Total Broad Market Agriculture Energy Industrial Metals Commodities Precious Metals - Gold Precious Metals - Silver Precious Metals - Others Precious Metals - Total Commodities Total Alternatives Volatility Others Alternatives Total Asset Allocation Currency Israel ETP Global ETP Total FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION September 2013 Net Flows 2013 YTD Net Flows % of YTD Flows Assets % of Assets # ETPs 5,203 23 5,227 16 21 821 210 (204) (146) (202) (461) 38 5,281 28,694 (346) 968 941 (304) 287 3,290 3,577 (626) 2,052 (3,176) 315 (2,861) (1,847) (3,631) (2,211) 157 (589) 2,709 1,544 (199) (2,221) (6,930) 166,063 5 10,913 1,117 (496) 4,149 5,981 10,129 (5,222) 2,725 (2.0) 0.2 (1.8) (1.1) (2.2) (1.4) 0.1 (0.4) 1.7 1.0 (0.1) (1.4) (4.3) 102.5 0.0 6.7 0.7 (0.3) 2.6 3.7 6.3 (3.2) 1.7 126,540 549 127,089 7,882 9,099 54,360 5,165 3,657 18,877 10,789 17,414 119,360 254,331 1,694,630 41,892 32,192 21,958 11,711 38,424 39,114 77,537 26,888 40,468 5.7 0.0 5.7 0.4 0.4 2.4 0.2 0.2 0.8 0.5 0.8 5.4 11.4 76.1 1.9 1.4 1.0 0.5 1.7 1.8 3.5 1.2 1.8 115 5 120 81 46 184 53 18 110 18 150 579 780 2,905 34 23 69 35 259 77 336 37 47 (41) 1,796 1.1 78,806 3.5 131 (193) (150) 730 6,609 539 76 (93) 17 (1,169) 23 (24) (1,170) (630) 222 29 251 31 43 - (1,138) (775) 6,492 25,546 266 160 (1,159) (23) (32,923) 1,152 (14) (31,786) (32,542) 1,740 (53) 1,687 1,369 (89) - (0.7) (0.5) 4.0 15.8 0.2 0.1 (0.7) (0.0) (20.3) 0.7 (0.0) (19.6) (20.1) 1.1 (0.0) 1.0 0.8 (0.1) - 5,170 7,597 11,703 355,922 18,146 5,319 8,102 2,053 82,496 12,971 4,753 100,220 133,840 3,243 2,697 5,941 4,284 4,803 26,789 0.2 0.3 0.5 16.0 0.8 0.2 0.4 0.1 3.7 0.6 0.2 4.5 6.0 0.1 0.1 0.3 0.2 0.2 1.2 20 7 32 771 115 200 212 122 117 69 84 270 919 47 76 123 75 144 - 34,998 162,034 100.0 2,226,208 100.0 4,937 [ 11 ] Endnotes The ETP (or exchange traded product) category encompasses any portfolio exposure security that trades intra-day on an exchange. The data for this report are captured from a number of sources by BlackRock including provider websites, fund prospectuses, provider press releases, provider surveys, Bloomberg, the National Stock Exchange, Strategic Insight Simfund, Wind, and the Bank of Israel. All amounts are reported in US dollars. Flows are derived using daily net asset values and shares outstanding using the most recent data we can capture at month-end. For products with cross-listings, we attribute net flows and assets to the primary listings. For Middle East and Africa, net flows data is not available. Assets are derived using shares outstanding and prices at the end of each month (or the closest date available). Where price is not available, we use an approximation. For ETPs listed in Israel, product level detail is not available. Product level information is aggregated by provider, asset class, exposure, region listed and replication method to produce the various analyses in the report. 1. Data is as of September 27, 2013 for Europe and September 30, 2013 for the US, Canada, Latin America, Israel, and some Asia ETPs. Some Asia ETP data is as of August 30, 2013. Global ETP flows and assets are sourced using shares outstanding and net asset values from Bloomberg for the US, Canada, Europe, Latin America and some ETPs in Asia. Middle East ETP assets are sourced from the Bank of Israel. ETP flows and assets in China are sourced from Wind. Inflows for years prior to 2010 are sourced from Strategic Insights Simfund. Asset classifications are assigned by the BlackRock based on product definitions from provider websites and product prospectuses. Other static product information is obtained from provider websites, product prospectuses, provider press releases, and provider surveys. Market returns are sourced from Bloomberg. 2. We classify maturity buckets of a Fixed Income ETP if the fund invests at least 70% of its assets in the corresponding maturity/exposure range: Short maturity includes: underlying security maturities < 3 years and floating rate where the fund holds floating rate securities and/or bank loans. Intermediate includes: 3 years < underlying security maturities < 10 years. The “other” category includes Long-Term: underlying security maturities > 10 years; Broad Maturities: The fund invests in more than two maturity buckets without emphasizing one; Selected Maturities: The fund holds securities with multiple selected range of maturity buckets, i.e. barbell strategy which focuses on the specific short-term and long-term buckets with even weights; and Fixed Maturity: The fund itself has a target maturity date and arranged holdings correspondingly. 3. Source: Bloomberg MSCI EM Index (MXEF Index), as of September 2013 4. Mutual fund data is sourced from EPFR (excluding Money Market funds and ETFs). Full year 2012 and January-August 2013 data is sourced from EPFR monthly data. September 2013 data is sourced from EPFR weekly data for the four weeks ended Sep 25, 2013. Money Market mutual fund flows is sourced from EPFR weekly data for the four weeks ended Sep 25, 2013. 5. Source: Bloomberg US Generic Govt 10 Year Yield Index (USGG10YR Index), as of September 2013 6. Source: BlackRock, Bloomberg, Reuters Index returns are for illustrative purposes only and do not represent actual Fund performance. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results. ABOUT BLACKROCK BlackRock is a leader in investment management, risk management and advisory services for institutional and retail clients worldwide. At June 30, 2013, BlackRock’s AUM was $3.857 trillion. BlackRock offers products that span the risk spectrum to meet clients’ needs, including active, enhanced and index strategies across markets and asset classes. Products are offered in a variety of structures including separate accounts, mutual funds, iShares® (exchange traded funds), and other pooled investment vehicles. BlackRock also offers risk management, advisory and enterprise investment system services to a broad base of institutional investors through BlackRock Solutions®. Headquartered in New York City, as of March 31, 2013, the firm has approximately 10,700 employees in 30 countries and a major presence in key global markets, including North and South America, Europe, Asia, Australia and the Middle East and Africa. For additional information, please visit the Company's website at www.blackrock.com. FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION [ 12 ] Disclaimer REGULATORY INFORMATION BlackRock Advisors (UK) Limited is authorised and regulated by the Financial Conduct Authority ('FCA'), having its registered office at 12 Throgmorton Avenue, London, EC2N 2DL, England, Tel +44 (0)20 7743 3000. This document has been provided by BlackRock in a private and confidential manner to professional and or institutional investors (as such term is defined according to applicable regulations in the relevant jurisdiction) only upon express request. This document is solely for informational and educational purposes only and represents an assessment of the market environment at a specific time and is not intended to be relied upon by the reader as research, a forecast of future events or a guarantee of future results. This publication does not provide financial, investment or tax advice or information relating to the securities of any particular fund or other issuer. 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The funds mentioned herein have not been registered with any authorities in Thailand, and accordingly, this document may not be circulated or distributed, nor may the shares of these funds be offered or sold whether directly or indirectly, to any person in Thailand. NOTICE TO RESIDENTS IN VIETNAM: This document is intended for information purposes only and does not constitute investment advice or an offer to sell or solicitation of an offer to buy the funds described herein. This document has been provided by BlackRock in a private and confidential manner to institutional investors only upon their request. The funds mentioned herein have not been registered with any authorities in Vietnam, and accordingly, this document may not be circulated or distributed, nor may the shares of these funds be offered or sold whether directly or indirectly, to any person in Vietnam. © 2013 BlackRock Advisors (UK) Limited. All rights reserved. Registered Company No. 00796793. All rights reserved. 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