Notification of changes to the underlying fund of R130 BlackRock US Flexible Equity
17 Nov 2022
We have been notified by the representatives of BlackRock Global Funds (the “Company”) of the following upcoming changes to the underlying fund of the investment-linked policy sub-fund R130 BlackRock US Flexible Equity (the “Affected ILP sub-fund”). These changes will take effect from 15 December 2022 (the “Effective Date”).
Changes to the statement of investment objectives and policy
From the Effective Date, the investment strategy of the underlying fund of the Affected ILP sub-fund will change to adopt Environmental, Social and Governance ("ESG") principles. The Company has advised that these changes seek to better align the underlying fund of the Affected ILP sub-fund with the expectations of investors in light of ongoing developments within the asset management sector, specifically in relation to ESG investing with the overall aim of seeking to provide a comprehensive and sustainable approach to investing.
As a result of these changes, the underlying fund of the Affected ILP sub-fund will be reclassified from Article 6 to Article 8 under the European Union's Sustainable Finance Disclosure Regulation ("SFDR"). Please refer the Appendix in the Sample policyholder letter opposite for details of the changes.
Impact of the ESG changes
The Company believes that the changes to the underlying fund of the Affected ILP sub-fund will be in the best interests of investors by providing a more ESG focused investment strategy with no material change to the risk and return profile of the underlying fund of the Affected ILP sub-fund. The underlying fund of the Affected ILP sub-fund will however be subject to ESG Investment Policy Risk, which is not expected to affect its overall risk profile. Please refer to the Appendix in the Sample policyholder letter opposite for further information regarding ESG Investment Policy Risk.
Should you have any questions regarding these changes, please contact the Investment Marketing Team.
