BlackRock UK Absolute Alpha Class P Acc
HL comment
Our view on this Fund
Even this fund has struggled in recent months. The sector rotations between commodities and banks has affected short term performance. Returns are still smoother than most conventional funds. The temporary ban on shorting some financial stocks has not materially hit the fund and Mark Lyttleton maintains his core positions with a positive view on oil, gas and telecoms and a negative view on the consumer.
12-11-2008
Information from the fund manager
Please note: The information in this box has been provided by, and is issued by, the fund manager and not Hargreaves Lansdown.
HL group comment: BlackRock
Our view on this Fund Management Group as a whole
BlackRock was founded in 1988 primarily as a specialist in fixed income. They are one of the largest fixed income managers in the US today. In September 2006, they merged with Merrill Lynch which resulted in a significant increase in their assets under management and, more importantly, transforming the business into a truly global one. The marriage with Merrill Lynch Investment Managers has given BlackRock a massive presence in the UK with the expertise in equties. They also have an extraordinary global scale which enhances their ability to serve institutional and individual investors worldwide. When the two companies merged in 2006, it was rebranded as BlackRock Merrill Lynch, which is how they are now known in the UK. However, we expect the Merrill Lynch name to be dropped in due course and the firm will be better known as BlackRock. As for the key fund managers, it is business as usual and the merger has had little impact on their day to day fund management responsibilities.
15-09-2007
HL sector comment: Absolute Return
Our view on this sector
Over the longer term funds in this sector aim to generate a positive return regardless of stock market conditions. A variety of techniques are used including short selling shares. These funds are not guaranteed and can go down in value as well as up. Funds in the sector are all very different from each other so care needs to be taken in fund selection.
20-11-2008