Monthly Market Risk Update: April 2024 [SlideShare]
DSP Global Allocation Fund
1. [Title to come]
[Sub-Title to come]
Strictly for Intended Recipients OnlyDate
* DSP India Fund is the Company incorporated in Mauritius, under which ILSF is the corresponding share class
| People | Processes | Performance |
DSP Global Allocation Fund
2. 2
DSP Global Allocation Fund: Product Structure
Indian Investors
The Luxembourg-domiciled fund has
an AUM of USD 14.4 billion#
DSP Global
Allocation Fund
BlackRock Global Funds -
Global Allocation Fund
(BGF-GAF)
Product Structure:
Source: BlackRock; #AUM of BGF– GAF as of end-Nov 30, 2019 (Luxembourg domiciled Fund).
Access one of the largest funds in the world with a track record of over 17 years
3. 3
About BGF Global Allocation Fund
Unconstrainedin searchof opportunity
• Broadlydiversified across morethan40 countries and30 currencies
• Ability to invest in stocks, bonds, cash equivalents,andcurrencies aroundthe world
One of the mostwell-resourcedinvestmentteams
• Dedicated investment team seeks to generatealphathrough macroanalysis, fundamentalresearch and
systematicstrategies
• Maximizes BlackRock’s worldwideinvestment resources, technology,risk management&trading capabilities
Seeking returns competitive with global stocks with less volatility
• Compellingrisk-adjusted results for morethan twodecades
• Strategyhas weatheredmultiple bull andbearmarkets
Past performance may or may not sustain in future and should not be used as a basis for comparison with other investments. There is no guarantee that a positive investment outcome will be achieved.
Diversification and asset allocation may not fully protect you from market risk. While the investment approach described herein seeks to control risk, risk cannot be eliminated. As of 30 September 2019.
Source: BlackRock, Morningstar.
4. 4
Annual performance to last quarter end
The figures shown relate to past performance. Past performance may or may not sustain in future and should not be used as a basis for comparison with other investments.
As of 30 September 2019. Source: BlackRock, Bloomberg, Morningstar. Launch date: 3 January 1997 ‘A2’ shares. Basis: NAV prices, with gross dividends reinvested, net of expenses, in $USD. Index returns
are for illustrative purposes only. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. *
Reference benchmark consists of 36% S&P 500 Index, 24% FTSE World (ex-U.S.) Index, 24% ICE BofA/ML Current 5-Year U.S. Treasury Index, 16% FTSE Non-USD World Government Bond Index.
30/9/2018-
30/9/2019
30/9/2017-
30/9/2018
30/9/2016-
30/9/2017
30/9/2015-
30/9/2016
30/9/2014-
30/9/2015
BGF GlobalAllocationFund (A) 1.64% 1.67% 9.83% 6.47% -5.48%
ReferenceBenchmark* 4.97% 6.23% 10.08% 10.65% -2.98%
FTSE World Index 1.99% 10.96% 19.22% 12.50% -5.79%
S&P 500 Index 4.25% 17.91% 18.61% 15.43% -0.61%
MSCI EAFEIndex -0.82% 3.25% 19.65% 7.06% -8.27%
MSCI EuropeIndex -0.09% 0.33% 23.01% 3.13% -8.85%
MSCI JapanIndex -4.32% 10.57% 14.46% 12.52% -1.93%
MSCI Pacific ex-JapanIndex 3.13% 4.39% 14.59% 20.22% -16.66%
MSCI EmergingMarketsIndex -1.63% -0.44% 22.91% 17.21% -18.98%
FTSE WorldGovernmentBond Index 8.13% -1.54% -2.69% 9.71% -3.83%
FTSE Non-USD WorldGovernmentBondIndex 6.78% -1.57% -3.14% 12.61% -7.01%
ICE BofA/MLCurrent 10-YearU.S. Treasury Index 15.15% -4.02% -4.61% 5.59% 6.03%
BBG Barclays U.S. CreditIndex 12.63% -1.10% 1.96% 8.30% 1.50%
JP MorganEmergingMarketBondIndex 10.74% -2.94% 4.15% 16.82% -1.96%
S&P GoldmanSachs CommodityIndex -16.31% 22.91% 1.79% -12.21% -41.74%
MorningstarEAAFund USD ModerateAllocationCategory
Average
3.08% 2.83% 8.24% 6.33% -4.59%
5. 5
BGF Global Allocation Fund has delivered on its mission
10.1%
15.3%
0 %
6 %
12%
18%
BGF Global
AllocationFund
(A)
GlobalStocks
Ann.std.deviationsinceinception
/ 3rd~1
less
volatility
6.5%
6.9%
0 %
3 %
6 %
9 %
BGF Global
AllocationFund
(A)
GlobalStocks
Ann.totalreturnsinceinception
BGF GlobalAllocationFund (A)
vs. globalstockssince inception
Upside
capture
64%
Downside
capture
54%
The figures shown relate to past performance. Past performance may or may not sustain in future and should not be used as a basis for comparison with other investments.
As of 30 September 2019. Source: BlackRock, Bloomberg, Morningstar. Launch date: 3 January 1997 ‘A2’ shares. Basis: NAV prices, with gross dividends reinvested, net of expenses, in $USD. Index returns
are for illustrative purposes only. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Global
stocks represented by the FTSE World Index.
Competitivereturns… …with1/3rd lessrisk
Our mission: Provide a rate of return competitive withthat of global stocksat a lower level of volatility over a full marketcycle
7. 7
Ability to invest across the full opportunity set
Equities Fixed Income Cash/FX Non-Traditional
• Convertiblebonds
• Privateplacements
• Real estateinvestment
trusts
• Preciousmetals-related
securities
• Structurednotes
• Commonstock
• Preferredstock
• Single nameoptions
• Indexoptions
• Futures
• Dividendfutures
• Warrants
• Developedmarkets
• Emergingmarkets
• Frontier markets
• Americandepositoryreceipts
• Locally listedshares
•U.S. Treasuriesandagencies
•Developedmarket
sovereigns
•Emergingmarkets(USD and
localcurrency)
•Investment gradecorporates
•High yieldbonds
•Distressed bonds
•Inflation-linkedbonds
•Bank loans
•Interest rateswaps
•Yield curvetrades
•Credit default swaps(CDS)
•U.S. Treasurybills
•Non-U.S.governmentbills
•Foreign exchangeforwards
•Foreign exchangeoptions
The BGFGlobalAllocation Fund is a globally diversified, multi-asset fund that seeksto providearateof return competitivewiththat of global
stocksatalowerlevelof volatility overafull marketcycle.
• Unconstrained insearch of opportunity
• Diversified broadly across asset classes,countries,currencies,sectors, andsecurities
• Combinationof macro regime identification, bottom-up fundamental research andtop-down asset allocation
Reference to specific asset classes in this communication is for illustrative purposes only and does not constitute an offer or invitation to invest in any of the asset classes mentioned above. There is no
guarantee that a positive investment outcome will be achieved. Subject to change. As of 30 September 2019. Source: BlackRock.
8. 8
Reference benchmark
The referencebenchmarkservesas aperformancestandard.Itdoesnot, however,representtheteam’sentire investmentuniverse.
• Benchmarkrepresentsaneutralasset mixanda waytocommunicateoverweightandunderweightpositions.
• Portfoliois unconstrainedrelativeto benchmark. Asset allocationis driven largelybyrelativevaluationsandabsoluterisk across asset classes,
currencies,sectors, andsecurities.
• Riskis primarilydefinedas “thechanceof permanentloss of capital”.Relativerisk measures,such as standarddeviation and beta,areclosely
monitored,but arenot comprehensiverisk indicators.
9.2%
2 %
0 %
4 %
6 %
8 %
10%
BGF GlobalAllocationFund
(A)
ReferenceBenchmark
Neutral asset classallocation Neutral regionalallocation
• 60% Stocks
• 40% Bonds
• 60% U.S.
• 40% Non-U.S.
Annualizedstandarddeviationsinceinception
12%
10.1%S&P500
36%
FTSE World ex-U.S.
24%
ICE BofA/MLCurrent
5-Yr U.S. Treasury
24%
FTSE Non-USD
World Gov'tBond
16%
Referencebenchmark Comparable levels ofvolatility
As of 30 September 2019. Source: BlackRock. Launch date: 3 January 1997 ‘A2’ shares.
Diversification and asset allocation may not fully protect you from market risk. While the investment approach described herein seeks to control risk, risk cannot be eliminated. Past performance may or
may not sustain in future and should not be used as a basis for comparison with other investments.
9. 9
Flexibility in practice
80%
60%
40%
20%
0 %
Mar-97
Mar-98
Mar-99
Mar-00
Mar-01
Mar-02
Mar-03
Mar-04
Mar-05
Mar-06
Mar-07
Mar-08
Mar-09
Mar-10
Mar-11
Mar-12
Mar-13
Mar-14
Mar-15
Mar-16
Mar-17
Mar-18
Mar-19
Equities FixedIncome Commodity-Related* CashEquivalents
The fund was underweight stocks
relativeto its benchmark in the late
1 0 0 %
1990s
Oneof the largest stock overweightsin
the fund’s historywas H2’01
Exposureto cash equivalents has
varied dependingon market
conditions
Reference to specific asset classes in this communication is for illustrative purposes only and does not constitute an offer or invitation to invest in any of the asset classes mentioned above. Asset
allocation strategies do not assure profit and do not protect against loss. As of 30 September 2019. Source: BlackRock. Subject to change. Prior to 2015, the fund’s exposure was based on market value
and adjusted for the economic value of futures and swaps. From 2015, the fund’s exposure is based on the economic value of securities and is adjusted for futures, options, and swaps (except with
respect to fixed income securities) and convertible bonds. Commodity-related is comprised of precious metals ETFs. Overweight/underweight indicators are relative to fund’s reference benchmark,
which consists of 36% S&P 500 Index, 24% FTSE World (ex-U.S.) Index, 24% ICE BofA/ML Current 5-Year U.S. Treasury Index, 16% FTSE Non-USD World Government Bond Index.
10. 10
Flexibility in practice
80%
60%
40%
20%
0 %
Mar-97
Mar-98
Mar-99
Mar-00
Mar-01
Apr-02
Mar-03
Mar-04
Mar-05
Mar-06
Mar-07
Mar-08
Mar-09
Mar-10
Mar-11
Mar-12
Mar-13
Mar-14
Mar-15
Mar-16
Mar-17
Mar-18
Mar-19
North AmericanStocks
Emerging MarketStocks
U.S. Credit
DevelopedEuropeanStocks
Commodity-Related*
Non-U.S. SovereignDebt
Dev.Asia ex-JapanStocks
U.S. Treasuries &Agencies
Non-U.S. Credit
JapaneseStocks
U.S. TIPS
CashEquivalents
around financial andhousehold
leverage
The teamincreasedexposure to
commodity-relatedsecuritiesprior to
the global credit crisis andfurther added
as central bank balancesheets expanded
The teamaddedto North The teamemphasizedhigh-quality
Americanstocksat attractive governmentbonds in responseto
valuationsaftersuccessfully tightening spreads andconcerns
avoiding thetechnology
bubble
100%
The teamaddedtonon-U.S.
stocks dueto attractive
valuations and accommodative
monetary policies
Reference to specific asset classes in this communication is for illustrative purposes only and does not constitute an offer or invitation to invest in any of the asset classes mentioned above. Asset
allocation strategies do not assure profit and do not protect against loss. As of 30 September 2019. Source: BlackRock. Subject to change. Prior to 2015, the fund’s exposure was based on market value
and adjusted for the economic value of futures and swaps. From 2015, the fund’s exposure is based on the economic value of securities and is adjusted for futures, options, and swaps (except with
respect to fixed income securities) and convertible bonds. Commodity-related is comprised of precious metals ETFs.
11. Global Allocation Investment Team
3
Industryanalystscoveropportunitiesacrossregions,sectors, and thecorporatecapitalstack
Global
Platform
Oversight
Product
Strategy
Portfolio ManagementTeam
Rick Rieder* Russ Koesterich, CFA, JD David Clayton, CFA, JD Dan Chamby,CFA†
32 years experience 24 years experience 25 years experience 34 yearsexperience
Portfolio Manager Portfolio Manager Portfolio Manager Portfolio Manager
Kate Moore - Head of Thematic Strategy
20 years experience
Backedby a rosterof experienced&dedicated analysts
MacroResearch FundamentalSecuritySelection QuantitativeStrategies
Macro analysts leverage BlackRock’s Fundamental analysts, primarily Quantitative research implements global resources,
providedaily market segmented byglobal equity industry, systematic strategies &style factor insights, andimplement
strategic &havethe flexibility to recommend tilts, calibrates portfolio exposures, tacticaltradingpositions securities
across the capitalstack andmonitors risk
Consumer
Staples
Media /
Telecom
Technology
Financials/
REITs
Consumer
Discretionary
Industrials/
Utilities
Energy /
Materials
Healthcare
Incorporatesspecializedinvestment expertisefromBLK GlobalFixedIncome
GlobalRates U.S.IG CorpCredit U.S. HY CorpCredit Non-USCredit Securitized EmergingMarkets
Leveragesthe breadthandscaleof BlackRock
BlackRock InvestmentInstitute
(BII)
Aladdin® Trading &Liquidity
Risk &Quantitative
Analysis (RQA)
As of 30 September 2019. Source: BlackRock. * Investment team leader. † Intends to retire March 2020.
11
12. Process integrates macro, industry and security selection
3
MacroRegime
• PMs examine globalgrowth
andinflation data,then forecast
implications on economic
policy
• Identify macroregimes
associated with market
conditions; determine
drivers, direction, andpaceof
regime changes
• Daily interactions with
fundamental analysts allows
bottom-up research to inform
&shape top-down views
• Build, evolve, andmonitor
thesis from deep
fundamental research across
theplatform
AssetAllocation
• PMs determine
opportunities basedon
economic regime and
expectedrisk-adjusted
returns.
• Macroviews, coupled with
fundamental bottom-up
research, informs asset
class, regional, sector, and
currency decisions.
• Tactical application of
additional exposures to
adjust for style factor
exposure andto hedge
volatility
SecuritySelection
• Fundamental analyst-
sourced securities provide
foundation for core
fundamental, high conviction
corporate securities – inputs
entered into proprietary
“Mosaic” platform
• Optimization toolsassist
the sizing process of
individual equities
• Extensive collaboration
betweenGAandGFI in
identifying corporatecredit
opportunities globally
• Asset backedand securitized
assets leverage the specialized
expertise of GFI
Analysis andReview
• Daily investment andrisk
dashboardreviewprovides real
time portfolio monitoring
andinsight to best
risk/reward trade-offs.
• Investment teamleverages
BlackRock’s RQA& proprietary
Aladdin platform for risk,
scenario analysis and
portfolio attribution.
Processleveragesthebreadth of BlackRock’sglobalmacroresources, thedepth&experienceof theGA team, and the
specialized expertise acrossGFIto deliveroninvestment objectives
Process integratesmacro,industry, and security selectioninsights so as to budgetrisk to the highest qualityalphasources
DailyPerformanceandRiskExposuresFeedbackLoop
As of 30 September 2019. Source: BlackRock. Diversification and asset allocation may not fully protect you from market risk. Risk management cannot fully eliminate the risk of investment loss. There is no
guarantee that stress testing will eliminate the risk of investing in this fund or strategy. Current process for selecting investments in the fund’s portfolio in accordance with its stated investment objectives
and policies. Subject to change based on market conditions, portfolio manager’s discretion and other factors.
12
14. It’s not how much you make, it’s how much you keep
3
The figures shown relate to past performance. Past performance may or may not sustain in future and should not be used as a basis for comparison with other investments. As of 31 December 2018.
Source: BlackRock, Bloomberg. Index returns are for illustrative purposes only. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and
one cannot invest directly in an index. Global stocks represented by the FTSE World Index. * Half the up-half the down illustration captures 50% of bull markets and 50% of bear markets relative to the FTSE
World Index. All figures are shown in $USD.
Half the up-half the downGlobal stocks:All the up-all the down
3/24/00
$100K
-24%
-29%
$76K
10/9/02
10/31/07
$144K
$103K
3/9/09
12/31/18
$231K
3/27/00
$100K
-48%
-58%
$52K
10/9/02
10/31/07
$146K
$62K
3/9/09
12/31/18
$215K
+247%
+180% +90%
+124%
14
15. It’s not how much you make, it’s how much you keep (part 2)
3
The figures shown relate to past performance. Past performance may or may not sustain in future and should not be used as a basis for comparison with other investments. As of 31 December 2018.
Source: BlackRock, Bloomberg. Launch date: 3 January 1997 ‘A2’ shares. Basis: NAV prices, with gross dividends reinvested, net of expenses, in $USD. Index returns are for illustrative purposes only. Index
performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Global stocks represented by the FTSE World
Index. All figures are shown in $USD.
BGF Global Allocation Fund (A)Global stocks:All the up-all the down
3/27/00
$100K
-48%
-58%
$52K
10/9/02
10/31/07
$146K
$62K
3/9/09
12/31/18
$215K
+247%
+180%
3/27/00
$100K
-14%
-33%
$86K
10/9/02
10/31/07
$204K
$137K
3/9/09
+138%
+89%
12/31/18
$259K
15
16. Diversification across regions and asset classes has helped provide a more
consistent investor experience
3
Calendaryear returns by asset class
The figures shown relate to past performance. Past performance may or may not sustain in future and should not be used as a basis for comparison with other investments. Diversification and asset
allocation may not fully protect you from market risk. As of 31 December 2018. Source: BlackRock, Morningstar. Launch date: 3 January 1997 ‘A2’ shares. Basis: NAV prices, with gross dividends reinvested,
net of expenses, in $USD. Index returns are for illustrative purposes only. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one
cannot invest directly in an index. U.S. stocks represented by the S&P 500 Index, developed stocks ex-U.S. by the MSCI EAFE Index, emerging market stocks by the MSCI EM Index, U.S. bonds by the ICE
BofA/ML Current 10-Year U.S. Treasury Index, non-U.S. bonds by the FTSE Non-USD World Government Bond Index, emerging market bonds by the JP Morgan Emerging Market Bond Index, and commodities
by the S&P Goldman Sachs Commodity Index. * Hypothetical strategies assume 100 investment in prior year’s best/worst performer on 1
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
U.S. Stocks 33% 29% 66% 50% 4 % 32% 56% 26% 35% 33% 40% 20% 79% 19% 17% 19% 32% 14% 1 % 12% 38% 0 %
Emerging
MarketBonds
12% 20% 41% 15% 1 % 22% 39% 21% 26% 27% 33% 10% 32% 15% 8 % 19% 23% 11% 1 % 12% 26% -2%
U.S. 10Y
TreasuryBonds
11% 18% 27% 14% -2% 15% 29% 17% 14% 16% 12% -11% 28% 12% 5 % 18% -1% 6 % 1 % 11% 22% -4%
Developed
Stocks ex-U.S.
2 % 13% 24% -3% -4% 13% 26% 12% 11% 10% 11% -37% 26% 9 % 2 % 16% -2% -2% 0 % 10% 10% -5%
DevelopedGov't
-4% -12% 21% -9% -12% -6% 21% 12% 5 % 7 % 10% -43% 13% 8 % -1% 4 % -5% -3% -6% 2 % 9 % -13%
Bonds ex-U.S.
Emerging
MarketStocks
-12% -25% -5% -14% -21% -16% 19% 11% 2 % 1 % 6 % -46% 4% 8 % -12% 2 % -7% -4% -15% 2 % 6 % -14%
Commodities -14% -36% -8% -31% -32% -22% 1 % 5 % -9% -15% 5 % -53% -10% 5 % -18% 0 % -8% -33% -33% 0 % 2 % -14%
Invested in prior year’s best performer*
Invested in prior year’s worst
performer*
BGF Global Allocation Fund (A)
Cumulative return since 3 January 1997 102.40% 268.70% 276.40%
16
17. Performance in different market return regimes
3
24%
18%
12%
6 %
0 %
-6%
-6% 0 % 18% 24%
BGFGlobalAllocationFund(A)
5-Yr.AnnualizedReturn
6 % 12%
GlobalStocks 5-Yr. AnnualizedReturn
Frequencyof BGFGlobalAllocationFund (A)outperformancevs. global stocksover5-yearrollingperiods
Global stocks<0% Global stocks 0-6 % Global stocks>6%
100%
(44 / 44 periods)
86%
(60 / 70 periods)
8%
(8 / 100 periods)
The figures shown relate to past performance. Past performance may or may not sustain in future and should not be used as a basis for comparison with other investments. As of 30 September 2019.
Source: BlackRock. ‘A2’ share launch date: 3 January 1997. Basis: NAV prices, with gross dividends reinvested, net of expenses. All performance is
shown in $USD. Rolling returns calculated monthly from inception. Index returns are for illustrative purposes only. Index returns do not reflect any management fees, transaction costs or expenses. Indexes
are unmanaged and one cannot invest directly in an index. Global stocks represented by the FTSE World Index.
17
19. Portfolio snapshot as of 31 October 2019
4
Equities: 65%(vs.60%benchmark)
Overweight:
• Regions: U.S.,Emerging Asia
• Sectors: CommunicationServices,Healthcare, Consumer
Discretionary,Industrials
Underweight:
• Regions: U.K., Australia,Japan
• Sectors: Financials, ConsumerStaples, Materials,Real
Estate
Fixed Income: 30%(vs.40%benchmark)
Overweight:
• Corporates
Underweight:
• Developedex-U.S. GovernmentBonds
Commodity-Related: 2%
• GoldETFs
Cash Equivalents:3%
• Activelymanaged
Assetallocation (%of net assets*)
U.S.Stocks
41%
Non-U.S.
Stocks
24%
U.S.Bonds
23%
Non-U.S.
Bonds
7%
CashEquivalents
Commodity-Related 3%
2%
U.S.Dollar
61%
Euro
13%
JapaneseYen
11%
OtherEurope
2%
British Pound
Sterling
4%
OtherAsia
6%
Rest ofthe
World
3%
Currency allocation (%of netassets*)
As of 31 October 2019. Source: BlackRock. Subject to change. The fund is actively managed and its characteristics will vary. Overweight/underweight indicators are relative to fund’s reference
benchmark, which consists of 36% S&P 500 Index, 24% FTSE World (ex-U.S.) Index, 24% ICE BofA/ML Current 5-Year U.S. Treasury Index, 16% FTSE Non-USD World Government Bond Index. * of net assets
represents the fund’s exposure based on the economic value of securities and is adjusted for futures, options and swaps (except with respect for fixed income securities) and convertible bonds. Numbers
may not sum to 100 due to rounding.
19
20. Characteristics as of 31 October 2019
4
As of 31 October 2019. Source: BlackRock. Subject to change. The fund is actively managed and its characteristics will vary. Geographic exposure relates principally to the domicile of the issuers of the
securities held in the product, added together and then expressed as a percentage of the product’s total holdings. However, in some instances it can reflect the country where the issuer of the securities
carries out much of their business. Holdings are provided for informational purposes only and should not be deemed as recommendations to buy or sell securities or sectors mentioned. The specific
companies identified and described above do not represent all of the companies purchased or sold, and no assumptions should be made that the companies identified and discussed were or will be
profitable. * of net assets represents the fund’s exposure based on the economic value of securities and is adjusted for futures, options and swaps (except with respect for fixed income securities) and
convertible bonds. † Reference benchmark consists of 36% S&P 500 Index, 24% FTSE World (ex-U.S.) Index, 24% ICE BofA/ML Current 5-Year U.S. Treasury Index, 16% FTSE Non-USD World Government Bond
Index. Numbers may not sum to 100 due to rounding.
20
21. Performance as of 31 October 2019
4
The figures shown relate to past performance. Past performance may or may not sustain in future and should not be used as a basis for comparison with other investments. As of 31 October
2019. Source: BlackRock, Bloomberg, Morningstar. Launch date: 3 January 1997 ‘A2’ shares. Basis: NAV prices, with gross dividends reinvested, net of expenses, in $USD. Index returns are for
illustrative purposes only. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Global
stocks represented by the FTSE World Index, global bonds by the FTSE World Government Bond Index, and Morningstar peer group by the EAA Fund USD Moderate Allocation category average. *
Reference benchmark consists of 36% S&P 500 Index, 24% FTSE World (ex-U.S.) Index, 24% ICE BofA/ML Current 5-Year U.S. Treasury Index, 16% FTSE Non-USD World Government Bond Index. †
Periods less than 1 year are not annualized.
0%
YTD‡ 1 Year 3 Years 5 Years 10 Years
Since
Inception
BGF GlobalAllocationFund(A)* 12.69% 8.94% 5.42% 3.25% 4.64% 6.53%
ReferenceBenchmark† 14.94% 12.05% 8.41% 5.92% 7.32% 6.46%
GlobalStocks 20.42% 13.16% 12.13% 7.86% 9.60% 7.03%
Global Bonds 6.85% 9.93% 2.56% 1.96% 1.73% 4.18%
Morningstar PeerGroup 11.65% 8.71% 5.38% 3.52% 4.35%
5 %
Annualized totalreturns
25%
15%
10%
21
23. Risk & Quantitative Analysis (RQA) provides objectivity and independence*
F
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5
As of 30 September 2019. * RQA has separate reporting lines from the portfolio management team. While the investment approach described herein seeks to control risk, risk cannot be eliminated. There is
no guarantee that stress testing will eliminate the risk of investing in this fund or strategy.
• Review cumulative effect of
investment decisions to identify
factors contributing to, and
subtracting from,alphageneration
• Comprehensive portfolioattribution
includes asset class,country, sector,
currency, andindividual security
analysis
Performance
Attribution
• Allows the PM team to pro-actively
estimate how changes in identified
market prices affect the portfolio in
relative andabsoluteterms
• Enables teamto quantify portfolio
effectsof specificmarketscenarios
rather, thanrelyingon intuition
• Regularly scheduledmeetings
betweenRQAandGlobalAllocation
teamhelp ensure current portfolio
positioning is consistent with
team’s marketviews
• RQA monitors dozens of active risk
factors globally on a continuous basis
• Helps Global Allocation team ensure the
portfolio is not unintentionally
overexposed to specific top-down
factors
• Risk cannot (and should not) be entirely
eliminated, but it can (and must) be
identified
Risk
Assessment
Stress
Testing
Risk
Alignment
RQA
23
24. Balancing risk and return
F
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The figures shown relate to past performance. Past performance may or may not sustain in future and should not be used as a basis for comparison with other investments. This information
demonstrates, in part, the firm’s risk/return analysis. This material is provided for informational purposes only and is not intended to be investment advice or a recommendation to take any particular
investment action. There is no guarantee that a positive investment outcome will be achieved. As of 30 September 2019. Source: BlackRock, Bloomberg, Morningstar. Launch date: 3 January 1997 ‘A2’
shares. Basis: NAV prices, with gross dividends reinvested, net of expenses, in $USD. Returns calculated from first full month post inception (31 January 1997). Index returns are for illustrative purposes
only. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. See ‘Important Information’ for
index definitions. * Reference benchmark consists of 36% S&P 500 Index, 24% FTSE World (ex-U.S.) Index, 24% ICE BofA/ML Current 5-Year U.S. Treasury Index, 16% FTSE Non-USD World Government Bond
Index.
BGF Global
Allocation Fund(A)*
U.S.Credit
GlobalGov'tBonds
GlobalStocks
JapaneseStocks
EuropeanStocks
Asia ex-JapanStocks
Emerging MarketStocks
Morningstar PeerGroup
ReferenceBenchmark†
Cash
-50%
50%
150%
250%
350%
0 % 5 % 20%
Commodities
25%
CumulativeReturn
10% 15%
Risk (Ann. StandardDeviation)
Cumulative total returns and risk (Inception through September 2019)
U.S.Stocks
450%
24
25. The figures shown relate to past performance. Past performance may or may not sustain in future and should not be used as a basis for comparison with other investments. As of 30 September 2019.
Source: BlackRock, Bloomberg, Morningstar. Launch date: 3 January 1997 ‘A2’ shares. Basis: NAV prices, with gross dividends reinvested, net of expenses, in $USD. Index returns are for illustrative
purposes only. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Global stocks
represented by the FTSE World Index, global bonds by the FTSE World Government Bond Index, and Morningstar peer group by the EAA Fund USD Moderate Allocation category average. * Reference
benchmark consists of 36% S&P 500 Index, 24% FTSE World (ex-U.S.) Index, 24% ICE BofA/ML Current 5-Year U.S. Treasury Index, 16% FTSE Non-USD World Government Bond Index.
Experience that has weathered bull and bear markets
Technology
Bubble
2000 -2002
GlobalMarket
Recovery
2003 - 2007
GlobalCredit
Crisis
2008 - 2009
GlobalEasing
Cycle
2010 - 30/9/19
CombinedPeriod
2000 - 30/9/19
BGF GlobalAllocationFund(A) -2.17% 111.10% -5.75% 48.75% 189.51%
ReferenceBenchmark* -16.88% 79.67% -6.87% 92.34% 167.48%
GlobalStocks -39.56% 133.92% -20.59% 129.01% 156.75%
Morningstar PeerGroup -14.22% 49.16% -13.12% 40.76% 56.46%
Cumulative totalreturns
200%
150%
100%
50%
0 %
-50%
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2525
26. 1 Year 3 Years 5 Years 2018 2017 2016 2015 2014
BGF GlobalAllocationFund(A)($) 1.66% 4.31% 2.69% -8.88% 12.81% 3.23% -2.27% 1.61%
BGF GlobalAllocationEUR-Hedged (A)(€) -1.48% 1.67% 0.88% -11.52% 10.47% 2.14% -2.71% 1.44%
BGF GlobalAllocationFund (A)(€) 7.97% 5.28% 5.73% -4.43% -0.75% 6.53% 8.91% 15.37%
Performance as of 30 September 2019
The figures shown relate to past performance. Past performance may or may not sustain in future and should not be used as a basis for comparison with other investments. As of 30 September
2019. Source: BlackRock, Bloomberg. Launch date: 3 January 1997 ‘A2’ shares. Basis: NAV prices, with gross dividends reinvested, net of expenses. This information is for illustrative purposes only
based on internal data and does not take account of hedging transaction costs or subscription and redemption activity within the fund. It is designed to illustrate the indicative performance that
may have been achieved by placing 3-month forward contracts the fund assets to protect euro investors from fluctuations in dollar/euro exchange rates. This process is non-discretionary and is not
designed to enhance returns. Advantages include (1) the convenience of dealing in currencies other than a fund’s base currency and (2) returns aligned with those of the equivalent base currency
share class, adjusted for the relevant interest rate differential. The hedged share class return = base currency return +/- interest rate differential between the base currency and hedged share class
currency. Additional factors that will impact returns, albeit to a smaller extent, include short term interest rate changes, timing of market value hedge adjustments, the hedging range, and
transaction costs. The fund’s U.S. dollar/euro hedge will be applied through the use of forward contracts which will be rolled or adjusted as required.
Annualized totalreturns
16%
12%
8 %
4 %
0 %
-4%
-8%
-12%
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2626
27. 27
Disclaimer
Scheme Product Suitability Riskometer
DSP Global Allocation Fund
(An open ended fund of fund
scheme investing in BlackRock
Global Funds – Global Allocation
Fund)
This Open Ended Fund of Funds Scheme (Investing In International Fund) is suitable for investors who are seeking*:
• Long-term capital growth
• Investment in units of overseas funds which invest in equity, debt and short term securities of issuers around
the world
*Investors should consult their financial advisors if in doubt about whether the Scheme is suitable for them.
In the preparation of the material contained in this document, DSP Investment Managers Pvt. Ltd. (“AMC”) has used information that is publicly available, including information developed in-house or basis information received
from its affiliates. The AMC however does not warrant the accuracy, reasonableness and / or completeness of any information. The data/statistics are given to explain general market trends in the securities market, it should not be
construed as any research report/research recommendation.
We have included statements / opinions / recommendations in this document, which contain words, or phrases such as “will”, “expect”, “should”, “believe” and similar expressions or variations of such expressions, that are
“forward looking statements”. Actual results may differ materially from those suggested by the forward looking statements due to risk or uncertainties associated with our expectations with respect to, but not limited to, exposure
to market risks, general economic and political conditions in India and other countries globally, which have an impact on our services and / or investments, the monetary and interest policies of India, inflation, deflation,
unanticipated turbulence in interest rates, foreign exchange rates, equity prices or other rates or prices etc.
Please note that investors will be bearing the recurring expenses of the relevant fund of funds scheme in addition to the expenses of the underlying schemes in which the fund of funds scheme makes investment.
Asset Allocation
Under normal circumstances, the asset allocation will be as follows:
Asset category
Exposure
Risk Profile
Minimum Maximum
1. Units of BGF – GAF# or other similar overseas mutual fund scheme(s) 95% 100% High
2. Money market securities and/or units of money market/liquid schemes of DSP Mutual
Fund
0% 5% Low to Medium
#in the shares of BGF – GAF, an Undertaking for Collective Investment in Transferable Securities (UCITS) III fund.
The sector(s)/stock(s)/issuer(s) mentioned in this document do not constitute any recommendation/opinion of the same and the Underlying Fund may or may not have any future position in these sector(s)/stock(s)/issuer(s). The
portfolio of the Underlying Fund is subject to changes within the provisions of its Offer document. Past performance may or may not sustain in future and should not be used as a basis for comparison with other investments. There
is no guarantee of returns/ income generation in the Scheme. Further, there is no assurance of any capital protection/capital guarantee to the investors in the Scheme.
Neither the DSP Mutual Fund nor any of its schemes are registered in any jurisdiction except in India, under SEBI (Mutual Fund Regulations,1996; except for DSP Equity Opportunities Fund and DSP Dynamic Asset Allocation Fund,
which are also registered with the Securities and Commodities Authority, UAE. The distribution of this material in certain jurisdictions may be restricted or subject to registration requirements and, accordingly, persons who come
into possession of this material in such jurisdictions are required to inform themselves about, and to observe, any such restrictions.
All figures and other data given in this document are dated, unless and otherwise specified and the same may or may not be relevant in future. Please refer to the Scheme information document for investment pattern, strategy
and risk factors of the Scheme.
Investors are advised to consult their own legal, tax and financial advisors to determine possible tax, legal and other financial implication or consequence of subscribing to the units of the DSP Mutual Fund (“Fund”).
Mutual Fund investments are subject to market risks, read all scheme related documents carefully
![[Title to come]
[Sub-Title to come]
Strictly for Intended Recipients OnlyDate
* DSP India Fund is the Company incorporated in Mauritius, under which ILSF is the corresponding share class
| People | Processes | Performance |
DSP Global Allocation Fund](https://image.slidesharecdn.com/dspglobalallocationfund-oct312019-200226123744/85/dsp-global-allocation-fund-1-320.jpg)
