2d illustrations and photos
Average annual total returns (%) as of 6/30/24
|
2Q24 (not annualized) |
YTD (not annualized) |
1 Year |
3 Year |
5 Years |
10 Years |
|
|
Institutional (MUTF:MADCX) |
2.29 |
3.26 |
6.18 |
-8.20 |
3.22 |
3.56 |
|
Investor A (Without Sales Charge) |
2.21 |
3.13 |
5.95 |
-8.43 |
2.96 |
3.24 |
|
Investor A (With Sales Charge) |
-3.16 |
-2.28 |
0.39 |
-10.06 |
1.85 |
2.68 |
|
MSCI Emerging Markets 1 |
5.12 |
7.68 |
12.97 |
-4.68 |
3.49 |
3.18 |
| Expenses for Institutional shares: Total 1.01%; Net, Including Investment Related Expenses (dividend expense, interest expense, acquired fund fees and expenses and certain other fund expenses) 0.87%. For Investor A shares: Total 1.34%; Net, Including Investment Related Expenses 1.12%. Institutional and Investor A shares have contractual waivers with an end date of 06/30/2025 terminable upon 90 days’ notice. For certain share classes, BlackRock may voluntarily agree to waive certain fees and expenses in which the adviser may discontinue at any time without notice. Expenses stated as of the fund’s most recent prospectus. Data represents past performance and is no guarantee of future results. Investment returns and principal values may fluctuate so that an investor s shares, when redeemed, may be worth more or less than their original cost. All returns assume reinvestment of dividends and capital gains. Current performance may be lower or higher than that shown. Refer to Investment Management & Financial Services | BlackRock for most recent month-end performance. Investment returns reflect total fund operating expenses, net of all fees, waivers and/or expense reimbursements. Index performance is shown for illustrative purposes only. It is not possible to invest directly in an unmanaged index. Share classes have different sales charges, fees and other features. Returns with sales charge reflect deduction of current maximum initial sales charge of 5.25% for Investor A shares. Institutional shares have no front- or back-end load. Institutional shares have limited availability and may be purchased at various minimums. See prospectus for details. Net Expenses Excluding Investment Related Expenses for Institutional shares: 0.86%; for Investor A shares: 1.11%. |
Commentary as of 06/30/24
The fund posted returns of 2.29% (Institutional shares) and 2.21% (Investor A shares, without sales charge) for the second quarter of 2024. In aggregate, an overweight position and security selection in Brazil and Indonesia, respectively, detracted the most from relative returns during the quarter. An underweight allocation to Saudi Arabia and security selection in Korea contributed the most. At quarter-end, the fund had overweight holdings in Brazil, Indonesia, and Hungary, and underweight positions in China, Saudi Arabia, and Korea. From a sector standpoint, it had overweight allocations to information technology and utilities, and underweight exposures to consumer discretionary and materials.
Top 10 holdings (%)
Contributors
The main contributor to performance was an overweight allocation to Korean chip producer SK Hynix, which reported a record first-quarter operating profit, driven by its dominance in AI memory technology.
Detractors
An overweight position in Brazilian retailer Lojas Renner (OTCPK:LRENY) was the largest detractor. The stock continued to sell off as the broader retail industry experienced weak performance amid competition from China. Lojas Renner also anticipated weak second-quarter financial performance. Overall, Brazil continued to drag on returns after the Federal Reserve delayed interest rate cuts, which restricted the Brazilian central bank from loosening monetary policy more aggressively.
Further insight
During the quarter, we initiated a position in Taiwanese semiconductor company Mediatek, which specializes in AI hardware and comprehensive solutions for a broad consumer base. The fund also added to its position in Tencent, following positive first-quarter results. We took profits on and reduced the holding in Taiwan Semiconductor Manufacturing, following strong performance. We maintained our conviction in the company, which has gained market share. The fund sold its position in China Petroleum & Chemical (OTCPK:SNPMF), which faced U.S. sanctions.
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Important Risks: The fund is actively managed and its characteristics will vary. Stock values fluctuate in price so the value of your investment can go down depending on market conditions. International investing involves special risks including, but not limited to political risks, currency fluctuations, illiquidity and volatility. These risks may be heightened for investments in emerging markets. Investments in emerging markets may be considered speculative and are more likely to experience hyperinflation and currency devaluations, which adversely affect returns. In addition, many emerging securities markets have lower trading volumes and less liquidity. Short-selling entails special risks. If the fund makes short sales in securities that increase in value, the fund will lose value. Any loss on short positions may or may not be offset by investing short-sale proceeds in other investments. The fund may use derivatives to hedge its investments or to seek to enhance returns. Derivatives entail risks relating to liquidity, leverage and credit that may reduce returns and increase volatility. Non-diversification of investments means that more assets are potentially invested in fewer securities than if investments were diversified, so risk is increased because each investment has a greater effect on performance. The opinions expressed are those of the fund’s portfolio management team as of June 30, 2024, and may change as subsequent conditions vary. Information and opinions are derived from proprietary and nonproprietary sources deemed by BlackRock to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. BlackRock provides compensation in connection with obtaining or using third-party ratings and rankings. 1 Morgan Stanley Capital International Emerging Markets (MSCI EM) Index comprises large- and mid-capitalization emerging market equities. You should consider the investment objectives, risks, charges and expenses of the fund carefully before investing. The prospectus and, if available, the summary prospectus contain this and other information about the fund and are available, along with information on other BlackRock funds, by calling 800-882-0052 or from your financial professional. The prospectus should be read carefully before investing. ©2024 BlackRock, Inc. or its affiliates. All Rights Reserved. BLACKROCK is a trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners. Prepared by BlackRock Investments, LLC, member FINRA. Not FDIC Insured • May Lose Value • No Bank Guarantee |
Editor’s Note: The summary bullets for this article were chosen by Seeking Alpha editors.
This post originally appeared on BlackRock.
Editor’s Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.
