BlackRock Global Funds (BGF) Prospectus 25 June 2012

Transcription

1 BlackRock Global Funds Prospectus 25 June 2012

2 BLACKROCK GLOBAL FUNDS (the Company ) Dated 27 July 2012 THIRD ADDENDUM This document is the third addendum to the Information for Residents of Hong Kong dated 25 June 2012, as amended by the Addendum dated 9 July 2012 and the Second Addendum dated 11 July 2012 (the IRHK ). This document should be read in the context of and together with the Prospectus dated 25 June 2012 (the Prospectus ), the IRHK and the Product Key Facts Statements of the Company, as amended from time to time (together the Hong Kong Offering Document ). Investors should refer to the Hong Kong Offering Document for full information and terms defined therein have the same meaning in this document unless otherwise defined herein. The Directors of the Company, whose names appear in the Section Board of Directors in the Prospectus, and the directors of the Management Company are the persons responsible for the information contained in this document. To the best knowledge and belief of the Directors and the directors of the Management Company (who have taken all reasonable care to ensure that such is the case), the information contained in this document is accurate in all material respects and does not omit anything likely to affect the accuracy of such information. The Directors and the directors of the Management Company accept responsibility accordingly. The following changes to the IRHK shall apply with effect from 27 July 2012: 1. Under the section headed The Investment Advisers on page 2 of the IRHK, the words BlackRock (Singapore) Limited or shall be removed as follows:- The list of Investment Advisers to which the Management Company may delegate its investment management functions are set out in the section headed Administrative Organisation The Investment Advisers of the Prospectus. Investors should note that the Management Company has not delegated its investment management functions in respect of the Funds authorised by the SFC for sale to the public in Hong Kong to BlackRock (Singapore) Limited or BlackRock Institutional Trust Company N.A. Investors may refer to Appendix A of this Addendum or the list of Investment Adviser(s) and Sub-Adviser(s) for the above SFC-authorised Funds as of the date of this Addendum. 2. In the Remarks set out immediately below Appendix A on page 9 of the IRHK, the words BLKS BlackRock (Singapore) Limited shall be inserted as follows:- Remarks: BFM BIL BIMLLC BIMUK BLKAus BLKHK BLKJ BLKS BlackRock Financial Management, Inc. BlackRock International Limited BlackRock Investment Management, LLC BlackRock Investment Management (UK) Limited BlackRock Investment Management (Australia) Limited BlackRock (Hong Kong) Limited BlackRock Japan Co. Limited BlackRock (Singapore) Limited

3 3. Under the table in Appendix A List of Investment Adviser(s) and Sub-Adviser(s) on pages 9 and 10 of the IRHK, the Investment Adviser for the Asian Tiger Bond Fund, the Emerging Markets Bond Fund and the Local Emerging Markets Short Duration Bond Fund shall be changed as shown below:- Name of the sub-fund Investment Adviser(s) Sub-Adviser(s) 3. Asian Tiger Bond Fund BFMBLKS Nil 7. Emerging Markets Bond Fund BFMBIMUK Nil 38. Local Emerging Markets Short Duration Bond Fund BFMBIMUK Nil 4. Under the table in Appendix B Available Share Class Information on pages 11 to 22 of the IRHK, the column headed UK Reporting Status shall be deleted in its entirety as such information is not relevant to Hong Kong shareholders. 5. Under the table in Appendix B Available Share Class Information on pages 11 to 22 of the IRHK, the list of available Share Classes in respect of the following Funds shall be deleted in its entirety and be replaced with the followings:- Fund Share Class Abbreviation Class Distributing Type Distribution Frequency Gross / Net Distribution Currency Hedged Asian Tiger Bond Fund 1. A1 USD A Distributing (D) Monthly* Net USD 2. A2 SGD A Non-Distributing SGD Yes 3. A2 USD A Non-Distributing USD 4. A3 HKD A Distributing (M) Monthly Net HKD Yes #5. A3 NZD A Distributing (M) Monthly Net NZD Yes 6. A3 USD A Distributing (M) Monthly Net USD 7. A6 HKD A Distributing (S) Monthly Gross HKD Yes 8. A6 USD A Distributing (S) Monthly Gross USD 9. C1 USD C Distributing (D) Monthly* Net USD 10. C2 USD C Non-Distributing USD Global Corporate Bond Fund 1. A2 EUR A Non-Distributing EUR Yes 2. A2 USD A Non-Distributing USD 3. A4 EUR A Distributing (A) Annual Net EUR Yes #4. A3 NZD A Distributing (M) Monthly Net NZD Yes 5. A6 HKD A Distributing (S) Monthly Gross HKD Yes 6. A6 USD A Distributing (S) Monthly Gross USD No ^7. C6 USD C Distributing (S) Monthly Gross USD No

4 Fund Share Class Abbreviation Class Distributing Type Distribution Frequency Gross / Net Distribution Currency Hedged Global High Yield Bond Fund 1. A1 EUR A Distributing (D) Monthly* Net EUR Yes 2. A1 USD A Distributing (D) Monthly* Net USD 3. A2 EUR A Non-Distributing EUR Yes 4. A2 GBP A Non-Distributing GBP Yes ^5. A2 SEK A Non-Distributing SEK Yes 6. A2 USD A Non-Distributing USD 7. A3 EUR A Distributing (M) Monthly Net EUR Yes 8. A3 USD A Distributing (M) Monthly Net USD 9. A6 HKD A Distributing (S) Monthly Gross HKD Yes 10. A6 USD A Distributing (S) Monthly Gross USD 11. C1 EUR C Distributing (D) Monthly* Net EUR Yes 12. C1 USD C Distributing (D) Monthly* Net USD 13. C2 EUR C Non-Distributing EUR Yes 14. C2 USD C Non-Distributing USD 15. C3 EUR C Distributing (M) Monthly Net EUR Yes US Dollar High Yield Bond Fund 1. A1 USD A Distributing (D) Monthly* Net USD 2. A2 AUD A Non-Distributing AUD Yes 3. A2 EUR A Non-Distributing EUR Yes 4. A2 SGD A Non-Distributing SGD Yes 5. A2 USD A Non-Distributing USD 6. A3 AUD A Distributing (M) Monthly Net AUD Yes ^7. A3 CAD A Distributing (M) Monthly Net CAD Yes ^8. A3 EUR A Distributing (M) Monthly Net EUR Yes ^9. A3 GBP A Distributing (M) Monthly Net GBP Yes #10. A3 NZD A Distributing (M) Monthly Net NZD Yes 11. A3 SGD A Distributing (M) Monthly Net SGD Yes 12. A3 USD A Distributing (M) Monthly Net USD 13. A4 GBP A Distributing (A) Annual Net GBP Yes 14. A6 HKD A Distributing (S) Monthly Gross HKD Yes 15. A6 USD A Distributing (S) Monthly Gross USD 16. C1 USD C Distributing (D) Monthly* Net USD 17. C2 USD C Non-Distributing USD 18. C6 USD C Distributing (S) Monthly Gross USD * Distributions calculated daily ^ Share Classes which were launched after 25 June 2012 # Share Classes which will be launched on or about 5 September 2012

5 BLACKROCK GLOBAL FUNDS (the Company ) Dated 11 July 2012 SECOND ADDENDUM This document is the second addendum to the Information for Residents of Hong Kong dated 25 June 2012, as amended by the Addendum dated 9 July 2012 (the IRHK ). This document should be read in the context of and together with the Prospectus dated 25 June 2012 (the Prospectus ), the IRHK and the Product Key Facts Statements of the Company, as amended from time to time (together the Hong Kong Offering Document ). Investors should refer to the Hong Kong Offering Document for full information and terms defined therein have the same meaning in this document unless otherwise defined herein. The Directors of the Company, whose names appear in the Section Board of Directors in the Prospectus, and the directors of the Management Company are the persons responsible for the information contained in this document. To the best knowledge and belief of the Directors and the directors of the Management Company (who have taken all reasonable care to ensure that such is the case), the information contained in this document is accurate in all material respects and does not omit anything likely to affect the accuracy of such information. The Directors and the directors of the Management Company accept responsibility accordingly. The following changes to the IRHK shall apply with effect from 11 July 2012: Under the table in Appendix B Available Share Class Information on pages 11 to 22 of the IRHK, the list of available Share Classes in respect of the following Funds shall be deleted in its entirety and be replaced with the followings: Fund Share Class Abbreviation Class Distributing Type Distribution Frequency Gross / Net Distribution Currency Hedged US Dollar High Yield Bond Fund 1. A1 USD A Distributing (D) Monthly* Net USD 2. A2 AUD A Non-Distributing AUD Yes 3. A2 EUR A Non-Distributing EUR Yes 4. A2 SGD A Non-Distributing SGD Yes 5. A2 USD A Non-Distributing USD 6. A3 AUD A Distributing (M) Monthly Net AUD Yes ^7. A3 EUR A Distributing (M) Monthly Net EUR Yes ^8. A3 GBP A Distributing (M) Monthly Net GBP Yes 9. A3 SGD A Distributing (M) Monthly Net SGD Yes 10. A3 USD A Distributing (M) Monthly Net USD 11. A4 GBP A Distributing (A) Annual Net GBP Yes 12. A6 HKD A Distributing (S) Monthly Gross HKD Yes 13. A6 USD A Distributing (S) Monthly Gross USD 14. C1 USD C Distributing (D) Monthly* Net USD 15. C2 USD C Non-Distributing USD 16. C6 USD C Distributing (S) Monthly Gross USD * Distributions calculated daily ^ Share Classes which were launched after 25 June 2012

6 BLACKROCK GLOBAL FUNDS (the Company ) Dated 9 July 2012 ADDENDUM This document is an addendum to the Information for Residents of Hong Kong dated 25 June 2012 (the IRHK ) and should be read in the context of and together with the Prospectus dated 25 June 2012 (the Prospectus ), the IRHK and the Product Key Facts Statements of the Company, as amended from time to time (together the Hong Kong Offering Document ). Investors should refer to the Hong Kong Offering Document for full information and terms defined therein have the same meaning in this document unless otherwise defined herein. The Directors of the Company, whose names appear in the Section Board of Directors in the Prospectus, and the directors of the Management Company are the persons responsible for the information contained in this document. To the best knowledge and belief of the Directors and the directors of the Management Company (who have taken all reasonable care to ensure that such is the case), the information contained in this document is accurate in all material respects and does not omit anything likely to affect the accuracy of such information. The Directors and the directors of the Management Company accept responsibility accordingly. The following changes to the IRHK shall apply with immediate effect: Under the table in Appendix B Available Share Class Information, the rows relating to Share Class A1 USD in respect of the following Funds shall be deleted in their entirety, as this Share Class is not available to the public in Hong Kong but has been inadvertently contained in the IRHK: 1. Latin American Fund 2. New Energy Fund 3. US Flexible Equity Fund 4. World Energy Fund 5. World Gold Fund 6. World Mining Fund The respective rows relating to Share Class A1 USD of the above funds shall be replaced with the followings: Fund Share Class Abbreviation Class Distributing Type Distribution Frequency Gross / Net Distribution Currency Hedged UK Reporting Status Latin American Fund 1. A4 USD A Distributing (A) Annual Net USD New Energy Fund 5. A4 USD A Distributing (A) Annual Net USD US Flexible Equity Fund 7. A4 USD A Distributing (A) Annual Net USD World Energy Fund 9. A4 USD A Distributing (A) Annual Net USD World Gold Fund 8. A4 USD A Distributing (A) Annual Net USD World Mining Fund 1. A4 USD A Distributing (A) Annual Net USD

7 BLACKROCK GLOBAL FUNDS (the Company ) INFORMATION FOR RESIDENTS OF HONG KONG This Addendum contains additional information of particular relevance to residents of Hong Kong. All decisions to subscribe for Shares should be made on the basis of the information in the Prospectus, as modified and supplemented by this Addendum, and the most recent annual and (if later) half yearly accounts of the Company. IMPORTANT - IF YOU ARE IN ANY DOUBT ABOUT THE CONTENTS OF THIS DOCUMENT, YOU SHOULD SEEK INDEPENDENT PROFESSIONAL FINANCIAL ADVICE. AUTHORISATION IN HONG KONG The Company and the Funds set out in the Funds available in Hong Kong section below are authorised by the Securities and Futures Commission in Hong Kong (the SFC ) as a collective investment scheme. The SFC s authorisation is not a recommendation or endorsement of the Company/the Funds nor does it guarantee the commercial merits of the Company/the Funds or their performance. It does not mean the Company/the Funds are suitable for all investors nor is it an endorsement of their suitabilities for any particular investor or class of investors. No money should be paid to any intermediary in Hong Kong who is not licenced or registered to carry out type 1 regulated activity under part V of the Securities and Futures Ordinance. Notwithstanding the incorporation into the offering documents of the Company of the availability of investment powers under the UCITS Directive 2001/108/EC (as amended), for so long as the Company remains authorised by the SFC, and unless otherwise approved by the SFC, the Company will not enter into financial derivative investments (other than for efficient portfolio management or hedging purposes). Prior written notification of not less than 1 month will be given to investors and the Company s Hong Kong offering document will be updated should there be any change in the investment objectives, policy and/or restrictions applicable to the Company. Nothwithstanding anything said in the Prospectus, both the English and Chinese versions of the Prospectus shall contain same information and shall be treated as having the same equal standing in Hong Kong. Funds available in Hong Kong Warning: In relation to the Funds as set out in the Prospectus, only the following Funds are authorised by the SFC as of 25 June 2012 pursuant to section 104 of the Securities and Futures Ordinance and hence may be offered to the public of Hong Kong: 1. Asia Pacific Equity Income Fund 23. Global Corporate Bond Fund 2. Asian Dragon Fund 24. Global Dynamic Equity Fund 3. Asian Tiger Bond Fund 25. Global Enhanced Equity Yield Fund 4. China Fund 26. Global Equity Fund 5. Continental European Flexible Fund 27. Global Equity Income Fund 6. Emerging Europe Fund 28. Global Government Bond Fund 7. Emerging Markets Bond Fund 29. Global High Yield Bond Fund 8. Emerging Markets Equity Income Fund 30. Global Inflation Linked Bond Fund 9. Emerging Markets Fund 31. Global Opportunities Fund 10. Euro Bond Fund 32. Global SmallCap Fund 11. Euro Corporate Bond Fund 33. India Fund 12. Euro Reserve Fund 34. Japan Fund 13. Euro Short Duration Bond Fund 35. Japan Small & MidCap Opportunities Fund 14. Euro-Markets Fund 36. Japan Value Fund 15. European Enhanced Equity Yield Fund 37. Latin American Fund 16. European Fund 38. Local Emerging Markets Short Duration Bond Fund 17. European Growth Fund 39. New Energy Fund 18. European Small & MidCap Opportunities Fund 40. Pacific Equity Fund 19. European Value Fund 41. Swiss Small & MidCap Opportunities Fund 20. Fixed Income Global Opportunities Fund 42. United Kingdom Fund 21. Flexible Multi-Asset Fund 43. US Basic Value Fund 22. Global Allocation Fund 44. US Dollar Core Bond Fund 1

8 45. US Dollar High Yield Bond Fund 54. World Energy Fund 46. US Dollar Reserve Fund 55. World Financials Fund 47. US Dollar Short Duration Bond Fund 56. World Gold Fund 48. US Flexible Equity Fund 57. World Healthscience Fund 49. US Government Mortgage Fund 58. World Income Fund 50. US Growth Fund 59. World Mining Fund 51. US Small & MidCap Opportunities Fund 60. World Resources Equity Income Fund 52. World Agriculture Fund 61. World Technology Fund 53. World Bond Fund Please note that the Prospectus is a global offering document and therefore also contains information of the following Funds which are not authorised by the SFC as of 25 June 2012: 1. ASEAN Leaders Fund 5. European Focus Fund 2. Asian Growth Leaders Fund 6. Global Multi-Asset Income Fund 3. Asian Local Bond Fund 7. North American Equity Income Fund 4. European Equity Income Fund 8. Renminbi Bond Fund No offer shall be made to the public of Hong Kong in respect of the above unauthorised Funds. The issue of the Prospectus was authorised by the SFC only in relation to the offer of the above SFC-authorised Funds to the public of Hong Kong. Intermediaries should take note of this restriction. The Investment Advisers The list of Investment Advisers to which the Management Company may delegate its investment management functions are set out in the section headed Administrative Organisation The Investment Advisers of the Prospectus. Investors should note that the Management Company has not delegated its investment management functions in respect of the Funds authorised by the SFC for sale to the public in Hong Kong to BlackRock (Singapore) Limited or BlackRock Institutional Trust Company N.A.. Investors may refer to Appendix A of this Addendum or the list of Investment Adviser(s) and Sub-Adviser(s) for the above SFC-authorised Funds as of the date of this Addendum. USE OF DERIVATIVES Each of the Funds may use derivatives to hedge market and currency risk and for efficient portfolio management. These include swap contracts to adjust interest rate risk, currency derivatives to buy or sell currency risk, covered call options to generate and rationalise income, credit default swaps to buy or sell credit risk and volatility derivatives to adjust volatility risk. However, derivatives will not be extensively or primarily used for investment purposes. Under Article 11 of UCITS Directive 2007/16/EC, derivatives for efficient portfolio management shall be entered into for one or more of the following aims: (i) reduction of risk, (ii) reduction of cost, or (iii) generation of additional capital or income. In an adverse situation, the Funds may suffer significant losses from their derivatives usage for hedging and efficient portfolio management. ADDITIONAL INFORMATION ON SPECIFIC FUNDS China Fund The China Fund may invest up to a combined 10% of its assets in China A Shares and China B Shares. The prior approval of the SFC will be sought for any change in such investment strategy, and at least one month s prior notice will be given to investors. Funds with Asset Allocation Strategy Flexible Multi-Asset Fund The Flexible Multi-Asset Fund may invest up to 80% of its assets in equities; up to 80% in fixed income; up to 20% in cash and cash equivalents; and up to 20% in alternative investments (including hedge funds, property, commodities). The Fund adopts a flexible approach to asset allocation, driven by proprietary macroeconomic research on equity, bond, currency markets and alternative investments. The Fund seeks to exploit inefficiencies between these asset classes and within asset classes themselves. We compare current valuations to our own analysis of the economic cycle to determine whether our estimated returns are more or less optimistic than the consensus. Such disagreements with average opinion define whether an asset class offers opportunities, risks or a balance of the two. In order to generate returns in a risk-controlled manner, we monitor factors outside our basic cycle-valuation framework, including investor sentiment and positioning which are especially important indicators of market psychology. 2

9 Global Allocation Fund The Global Allocation Fund may invest up to 100% of its assets in equities; and up to 100% in fixed income and money market instruments. The Fund adopts a fully managed investment policy, varying from time to time the combination of United States and foreign equity securities, debt and money market securities, both with respect to types of securities and markets, in response to changing market conditions and economic trends. In deciding between equity and debt investments, the Fund looks at a number of factors, such as the relative opportunity for capital appreciation, capital recovery risk, dividend yields and the level of interest rates paid on debt securities of different maturities. The performance of these Funds with asset allocation strategy is partially dependent on the success of the asset allocation strategy employed by these Funds. There is no assurance that the strategy employed by these Funds will be successful and therefore the investment objectives of these Funds may not be achieved. Please refer to the Investment Objectives and Policies section of the Prospectus for more information. US Dollar Reserve Fund and Euro Reserve Fund The US Dollar Reserve Fund and Euro Reserve Fund (collectively, the Reserve Funds ) seek to maximise current income consistent with preservation of capital and liquidity. However, investors should note that these Funds do not provide any guarantees of return and negative returns may be generated under certain circumstances. The Reserve Funds (i) may invest in financial derivative instruments for hedging purposes only; (ii) may enter into repurchase transactions for efficient portfolio management purposes only; (iii) do not engage in securities lending transactions; and (iv) do not invest in any synthetic asset backed securities (which are securities whose income is derived from financial derivative instruments on a pool of reference assets). HONG KONG REPRESENTATIVE The representative of the Company in Hong Kong ( the Hong Kong Representative ) is BlackRock (Hong Kong) Limited, 16/F Cheung Kong Center, 2 Queen s Road Central, Hong Kong. Copies in English of the Company s Articles of Association and material contracts entered into between the Company and its functionaries (as varied or substituted from time to time) are available for inspection free of charge during usual business hours on any weekday (Saturdays and Public Holidays excepted) at the Hong Kong Representative s office. English and Chinese copies of the Prospectus and English copies of the annual report and interim report are available, without charge, from the Hong Kong Representative. Shareholders may contact the Hong Kong Representative at the above address or at if they have any queries or complaints in respect of the Company. Depending on the nature of an enquiry/complaint, it will be dealt with either by the Hong Kong Representative directly, or referred to the Management Company for further handling as soon as practicable. AVAILABILITY Class A Distributing and Non-Distributing Shares are available in Hong Kong from the Hong Kong Representative, BlackRock (Hong Kong) Limited, and certain other third party distributors. Unless otherwise requested, all Class A Shares will be issued as registered shares. Class C Shares are available as Distributing and Non-Distributing Shares to clients of certain distributors (which provides nominee facilities to investors) and to other investors at the discretion of the Management Company. Class C Shares are available as registered shares only. Class I Shares are available as Distributing and Non-Distributing Shares and are only available at the Management Company s discretion. Class I Shares are only available to institutional investors within the meaning of Article 174 of the 2010 Law on undertakings for collective investment, as amended. Investors must demonstrate that they qualify as institutional investors by providing the Company and its Transfer Agent or the local Investor Servicing team with sufficient evidence. Classes B, D, E and J shares are not available to the public in Hong Kong. 3

10 Class Q Shares are available at the discretion of the Management Company as Distributing and Non-Distributing Shares and are a grandfathered Share Class available to investors previously holding shares in other funds sponsored by entities within either the ML Group or the BlackRock Group. Any Contingent Deferred Sales Charge history from a previous fund will be carried over into the new Fund. Unless otherwise requested, all Class Q Shares will be issued as registered shares. The Directors intend that after 31 March 2014 any Class Q Shares in issue will be transferred to the equivalent type of Class A Shares. As all outstanding CDSC liability should have been discharged by this date, no CDSC will be charged on any such transfer. Class X Shares are available as Distributing and Non-Distributing Shares, and are issued as registered shares at the discretion of the Management Company and its affiliates. No fees are payable in respect of Class X Shares (instead a fee will be paid to the Investment Adviser or affiliates under an agreement). Class X Shareholders bear all expenses along with all other Shareholders pro rata to the Fund s respective Net Asset Values. Class X Shares are only available to institutional investors within the meaning of Article 174 of the 2010 Law on undertakings for collective investment, as amended. Investors must demonstrate that they qualify as institutional investors by providing the Company and its Transfer Agent or the Investor Servicing team with sufficient evidence. To the extent permitted by the Prospectus, the Investment Advisers may employ techniques and instruments from time to time intended to provide protection against movements of one currency versus other currencies. Further, hedged versions of Class A Shares and Class C Shares are available to Hong Kong resident holders of Shares denominated in the additional Dealing Currency of the Funds as listed in Appendix B. Additional Hedged Share Classes may, at the Directors discretion, be made available in other Funds and in other currencies. Non-Distributing Shares of any class are also referred to using the number 2, e.g. Class A2. Those Distributing Shares which pay dividends monthly are further divided into Shares as follows: (i) those Shares for which dividends are calculated daily are known as Distributing (D) Shares, which in any class are also referred to using the number 1, e.g. Class A1; and (ii) those Shares for which dividends are calculated monthly are known as Distributing (M) Shares, which in any class are also referred to using the number 3, e.g. Class A3. Distributing Shares with quarterly dividend payment are known as Distributing (Q) Shares, which in any class are also referred to using the number 5, e.g. Class A5. Distributing Shares with annual dividend payment are known as Distributing (A) Shares, which in any class are also referred to using the number 4, e.g. Class A4. Distributing Shares where income is distributed gross of expenses are also referred to as Distributing (G) Shares, e.g. Class A5(G). Distributing Shares intending to provide consistent monthly dividend payments to shareholders are known as Distributing (S) Shares, which in any class are also referred to using the number 6, e.g. Class A6. Distributing (S) Shares also distribute income gross of expenses and may pay dividends out of capital (including net gains) of that Share Class at the Directors discretion. More information about the Dealing Currencies, Hedged Shares Classes, Distributing and Non-Distributing Share Classes available in Hong Kong as of the date of this Addendum is set out in Appendix B of this Addendum. The Directors may, at their discretion, offer new share classes in any of the SFC-authorised Funds, investors may obtain up-to-date information from the registered office of the Company and from the Investor Servicing team. RISK CONSIDERATIONS To the best knowledge of the Directors, the Prospectus sets out the risks that they are aware of pertaining to the Funds and the risks that an investor should be aware of in assessing the Funds. Investors should note that the Funds are exposed to various risks depending on their respective investment policies. Potential investors should consider the risks involved prior to investing in the Company to determine whether an investment in the Company is suitable to them. 4

11 ADDITIONAL RISK CONSIDERATIONS Risk of Termination The circumstances where a particular Fund may be terminated are summarised under paragraph 8 of Appendix B of the Prospectus. In the event of the termination of a Fund, such Fund would have to distribute to the Shareholders their pro rata interest in the assets of the Fund. It is possible that at the time of such sale or distribution, certain investments held by the relevant Fund might be worth less than the initial cost of such investments, resulting in a loss to the Shareholders. Moreover, any organisational expenses with regard to the relevant Fund which have not been fully amortised would be debited against the Fund s capital at the time of termination. Transfer of Collateral Referring to the section headed Transfer of Collateral under the section Special Risk Considerations in the Prospectus, investors should note that in the event of insolvency, bankruptcy or default of the counterparty under a collateral arrangement, the Fund may become an unsecured creditor and may not be able to recover the collateral. Consequently, the Fund may incur a loss or expenses in recovering its assets. SECURITIES LENDING Any net income (net of any remuneration to which the Company s securities lending agent is entitled) deriving from securities lending to which the Company is entitled will be reinvested in the Company. The remuneration paid to the Company s securities lending agent will be a maximum of 40% of net income deriving from securities lending. REPO TRANSACTIONS The Company may enter into repo transactions directly or indirectly through agents. These agents may include affiliates (for instance, the Investment Advisers) of the Company. There are currently no income sharing arrangements with these agents in respect of the repo transactions. Any incremental income due to the transactions will be accrued to the relevant Fund. FEES AND EXPENSES Subject to the approval of the Board of Directors, the combined Management and Administration for any Fund may be increased up to 2.25% by giving Shareholders at least three months prior notice. Any increase to the combined Management s and Administration above this level would require approval of Shareholders at a general meeting. At least one month s notice will be given to Shareholders of any increase in the rates of other fees and charges specified in the Prospectus, unless prior Shareholder consent is required under the Company s Articles when at least one month s notice will be given from the date of such consent. The Company will pay the fees and out-of-pocket expenses of the Hong Kong Representative for ensuring compliance with the relevant laws and regulations in Hong Kong and for acting as the Hong Kong Representative. The Management Company may pay the Hong Kong Representative a proportion of the initial charge in respect of applications for Class A Shares from residents of Hong Kong. Advertising and promotion expenses in connection with the company will not be paid by its assets. References to distribution fee under the section headed s, Charges and Expenses Distribution s of the Prospectus refer to a shareholders services fee paid to distributor for providing services such as maintaining records of clients accounts, issuing and delivering periodic account statements to clients. Launch Expenses for New Funds The expenses incurred in the establishment of each new fund is estimated to amount to US$10,000 per fund. The expenses relating to the establishment of these funds will be amortised over three years. These expenses will be split according to the number of shares in issue at the time of amortisation. If a Fund is closed at a time when any expenses previously allocated to that Fund have not been amortised in full, the Directors shall determine how the outstanding expenses should be treated and may, where appropriate, decide that the outstanding expenses should be met by the Fund as a liquidation expense. 5

12 PUBLICATION OF PRICES Prices for the previous Dealing Day (as defined in the Prospectus) of Class A, Class C and Class Q Shares for all Funds are normally published monthly in The Standard and daily in The Hong Kong Economic Times, on Bloomberg, on Reuters page BLRKIA and on Performance details and rankings amongst competitors are published by a wide number of internationally available newspapers and magazines and monitored by independent agencies such as Morningstar and Lipper Analytical Services. HOW TO INVEST Application, conversion and redemption instructions must be received by the Company s Hong Kong Representative before 6.00 p.m. (Hong Kong time) on any business day in Hong Kong, unless specifically agreed otherwise with the Hong Kong Representative, in order to be accepted by the Transfer Agent or the Investor Servicing team for that day s dealing (provided that it is also a bank business day in Luxembourg). The Transfer Agent or the Investor Servicing team will promptly confirm transactions by dispatching a confirmation note to the applicant. APPLICATIONS For your initial investment, carefully read the contents of the Prospectus and this Addendum, complete the Application Form which is enclosed and return the Form, with a copy of your telegraphic transfer instructions and a photocopy of your identification card or passport, to the Hong Kong Representative at 16/F Cheung Kong Center, 2 Queen s Road Central, Hong Kong, Telephone: Payment may only be made by telegraphic transfer; payment by cheque, banker s draft or cash will not be accepted. The Hong Kong Representative has no authority to agree on behalf of the Company that applications will be accepted or to bind the Company to issue Shares at any particular price. You may make your subsequent applications in writing, or by fax or telephone followed in each case by written confirmation. Details of minimum subscriptions are set out in the section headed Application for Shares Minimum Subscription of the Prospectus and details of the current minima are also available from the Hong Kong Representative. Further details on the application process are set out in the section headed Application for Shares of the Prospectus. Settlement in cleared funds net of bank charges must be made within the time periods set out in the section headed Application for Shares Settlement of the Prospectus unless otherwise specified in the contract note in cases where the standard settlement date is a public holiday for the currency of settlement. Telegraphic transfers should be made to the relevant accounts set out in the section headed Summary of Subscription Procedure and Payment Instructions of the Prospectus. NOMINEE SERVICE The Principal Distributor no longer offers investors a nominee facility. Investors who wish to continue to register shares with a nominee company may make alternative arrangements through the Investor Servicing team or the Hong Kong Representative. FOREIGN EXCHANGE TRANSACTIONS An investor may by prior arrangement with the Transfer Agent or the Investor Servicing team, provide the Transfer Agent with any other freely convertible currency and the Transfer Agent will arrange the necessary currency exchange transactions. The cost of foreign exchange transactions will be borne by the Investor. SINGLE PRICING OF SHARES With effect from midnight on 1 February 2002, the Company introduced single pricing for Class A Shares (which it already operated for Class E Shares) and any reference to bid and offer pricing of Shares shall be deemed to be a reference to single pricing. REDEMPTIONS AND CONVERSIONS The appropriate forms for redeeming or converting Shares and details of the current limits on redemption and conversion are available from the Hong Kong Representative. The limits on the redemption and conversion of Shares are set out in paragraph 28 of Appendix B of the Prospectus. Selected distributors may impose a charge on each conversion of those Shares acquired through it, as agreed upon between investor and the selected distributor, which will be deducted at the time of conversion and paid to the relevant distributor. While other conversions between the same Class of Shares of two Funds are normally free of charge, the Management Company may, at its discretion (and without prior notice), make an additional conversion charge which would increase the amount paid to up to 2% if excessively frequent conversions are made. Any such charges will be deducted at the time of conversion and paid to the relevant distributor or the Principal Distributor (as applicable). 6

13 Payment of redemption proceeds will normally be dispatched within three business days after the relevant dealing day (or, if the banks are not open for business on such third business day, on the next day on which they are open) and in any event within four weeks of the relevant Dealing Day, provided that the written confirmation has been received and all identification requirements have been met. On written request to the Transfer Agent, the Investor Servicing team or the Hong Kong Representative, redemption proceeds may be made in HK dollars or any other freely convertible currency, at the investor s cost. In certain circumstances, payment of redemption proceeds may be delayed, further details are set out in the Redemption of Shares section, and paragraph 22 of Appendix B, of the Prospectus. The Directors are entitled to levy a discretionary redemption charge of 2% on Shareholders of all Classes of Shares where they believe that excessive trading is being practised. Further details on the redemption process are set out in the Redemption of Shares section of the Prospectus. Investors may make conversions of their shareholdings between the same Class of Shares of the various Funds and thereby alter the balance of their portfolios to reflect changing market conditions. Shareholders may also convert between Distributing and Non-Distributing Shares of the same Class or between hedged and un-hedged Shares of the same Class (where available). In addition, Shareholders may convert between any Class of UK Distributor Status Shares in the relevant currency and the equivalent class of Distributing Shares in non-distributor status currencies. Such conversions may be a taxable event in the hands of investors and may give rise to an immediate tax charge. In addition, a conversion between Shares held in different funds will give rise to an immediate tax charge. As tax laws differ widely from country to country, shareholders should consult their tax advisers as to the tax implications of such a conversion in their individual circumstances. In Specie Redemptions The obligation to pay redemption proceeds may also be satisfied by payment in specie by allocating to the holder (subject to their prior consent) investments from the portfolio of the relevant Fund equal in value (calculated in the manner referred to in paragraphs 13 to 16 of Appendix B of the Prospectus) to the price of the relevant Shares to be redeemed (net of any applicable CDSC in the case of Class C and Class Q Shares). The nature and type of asset to be transferred in such case will be determined on an equitable basis and without prejudicing the interests of the other holders of Shares of the same class, and the valuations used will be confirmed by a special report of an independent auditor, deposited with the Register of Commerce and Companies of Luxembourg. INSTRUCTIONS GIVEN TO THE HONG KONG REPRESENTATIVE Application, conversion and redemption instructions given to the Hong Kong Representative for transmission to the Transfer Agent or the Investor Servicing team are irrevocable once given (except in the case of suspension or deferral - see paragraphs 29 to 32 of Appendix B of the Prospectus). The Hong Kong Representative, the Transfer Agent and the Investor Servicing team cannot, in the absence of negligence, accept responsibility for any failure by the Hong Kong Representative to forward any application, conversion or redemption instruction to the Transfer Agent or the Investor Servicing team or for any delay in doing so. EXCHANGE PRIVILEGE THROUGH MERRILL LYNCH Hong Kong residents who have acquired their Shares through Merrill Lynch will only be able to take advantage of the exchange privilege set out in the section headed Conversion of Shares Exchange Privilege through Merrill Lynch of the Prospectus if the fund in which they wish to invest is authorised by the SFC in Hong Kong. If the fund is not authorised by the SFC, it is not available to the public in Hong Kong. Further information of this exchange privilege is available from Merrill Lynch (Asia Pacific) Limited at 17/F, ICBC Tower, 3 Garden Road, Central, Hong Kong. SUSPENSION OF VALUATIONS The circumstances in which the valuations of any Class of Shares of a Fund may be suspended are set out in paragraph 29 of Appendix B of the Prospectus. Any suspension of valuations will be published as soon as may be practicable after the decision to suspend is made, and at least once a month during the period of such suspension, in the newspaper(s) set out in the section headed Publication of Prices above unless otherwise agreed with the SFC. 7

14 DIVIDENDS Dividends may be declared on Distributing Shares of Funds at the Directors discretion. All declared dividends result in an immediate decrease in the Fund s net asset value per share on ex-date, whether paid in cash or reinvested. Confirmation of the Funds, Share Classes and Currencies on which dividends may be declared is available from the registered office of the Company and the Investor Servicing team. Details of the dividends policy and the calculation of dividends are contained in the sections headed Dividends and Calculation of Dividends of the Prospectus. Distributing (G) and (S) Shares pay dividends gross of expenses, meaning all fees are deducted from capital. Distributing (G) Shares will not pay dividends out of capital, while Distributing (S) Shares may pay dividends out of capital. The effect of fees and/or dividends being paid out of capital (i.e. the amounts that an investor has invested in a Fund) will result in income being increased for distribution, however, the capital that a Fund has available for investment in the future and capital growth may be reduced. s and/or dividends paid out of capital may amount to a partial return or withdrawal of an investor s original investment or from any capital gains attributable to that original investment. The composition of the latest dividends (relative amounts paid from income and capital) are available from the Hong Kong Representative on request and on All other Distributing Shares pay dividends net of expenses, meaning fees are deducted from income. The Directors may amend the dividend policy subject to the prior approval of the SFC and by giving not less than one month s written notice. TAXATION Investors should inform themselves of, and when appropriate consult their professional advisers on, the possible tax consequences of subscribing for, buying, holding, redeeming, converting or selling shares under the laws of their country of citizenship, residence or domicile. Investors should note that the levels and bases of, and relief from, taxation can change. The Company will not be subject to any tax in Hong Kong so long as it does not carry on a trade or business of dealing in securities or commodities in Hong Kong. It is not the intention of the Company to carry on such a trade or business or to establish a place of business in Hong Kong. Shareholders will not be subject to any Hong Kong tax on dividends from the Company or on capital gains realised on the sale, redemption or other disposal of any Shares in the Company. If the acquisition and realisation of Shares in the Company is or forms part of a trade, profession or business carried on in Hong Kong, gains realised by the relevant Shareholder may attract Hong Kong profits tax. Shares will not attract Hong Kong estate duty. Furthermore, no Hong Kong stamp duty will be payable on the issue, conversion or transfer of Shares in the Company. The foregoing statements on taxation are given on the basis of the Company s understanding of present legislation and practice in Hong Kong. REPORTS AND ACCOUNTS The financial year of the Company ends on 31st August in each year. The annual report (available in English only) containing the audited financial accounts of the Company and of each of the Funds in respect of the preceding financial period is available within four months of the relevant year-end. An unaudited interim report (available in English only) is available within two months of the end of the relevant half-year. Notice will be given to the shareholders as and when the aforementioned reports are available. Electronic versions of these reports will be available on the Company s website at Investors should note that the website has not been authorised or reviewed by the SFC. BlackRock (Hong Kong) Limited 16/F Cheung Kong Center 2 Queen s Road Central Hong Kong Telephone: June

15 Appendix A List of Investment Adviser(s) and Sub-Adviser(s) Remarks: BFM BIL BIMLLC BIMUK BLKAus BLKHK BLKJ BlackRock Financial Management, Inc. BlackRock International Limited BlackRock Investment Management, LLC BlackRock Investment Management (UK) Limited BlackRock Investment Management (Australia) Limited BlackRock (Hong Kong) Limited BlackRock Japan Co. Ltd Name of the sub-fund Investment Sub-Adviser(s) Adviser(s) 1. Asia Pacific Equity Income Fund BIMUK BLKHK 2. Asian Dragon Fund BIMUK BLKHK 3. Asian Tiger Bond Fund BFM Nil 4. China Fund BIMUK BLKHK 5. Continental European Flexible Fund BIMUK Nil 6. Emerging Europe Fund BIMUK Nil 7. Emerging Markets Bond Fund BFM Nil 8. Emerging Markets Equity Income Fund BIMUK Nil 9. Emerging Markets Fund BIMUK Nil BIMLLC 10. Euro Bond Fund BIMUK BLKHK 11. Euro Corporate Bond Fund BIMUK BLKHK 12. Euro Reserve Fund BIMUK Nil 13. Euro Short Duration Bond Fund BIMUK BLKHK 14. Euro-Markets Fund BIMUK Nil 15. European Enhanced Equity Yield Fund BIMLLC Nil 16. European Fund BIMUK Nil 17. European Growth Fund BIMUK Nil 18. European Small & MidCap Opportunities Fund BIMUK Nil 19. European Value Fund BIMUK Nil 20. Fixed Income Global Opportunities Fund BFM BIMUK BLKAus 21. Flexible Multi-Asset Fund BIMUK BLKHK 22. Global Allocation Fund BIMLLC Nil 23. Global Corporate Bond Fund BFM BIMUK BLKAus 24. Global Dynamic Equity Fund BIMLLC Nil 25. Global Enhanced Equity Yield Fund BIMLLC Nil 26. Global Equity Fund BIMUK Nil 27. Global Equity Income Fund BIMUK Nil 28. Global Government Bond Fund BIMUK BLKAus BFM 29. Global High Yield Bond Fund BFM BIMUK 30. Global Inflation Linked Bond Fund BFM Nil 31. Global Opportunities Fund BIL Nil 9

16 Name of the sub-fund Investment Sub-Adviser(s) Adviser(s) 32. Global SmallCap Fund BIMLLC Nil 33. India Fund BIMUK BLKHK 34. Japan Fund BIMUK BLKHK 35. Japan Small & MidCap Opportunities Fund BIMUK BLKJ 36. Japan Value Fund BIMUK BLKHK 37. Latin American Fund BIMLLC Nil 38. Local Emerging Markets Short Duration Bond Fund BFM Nil 39. New Energy Fund BIMUK Nil 40. Pacific Equity Fund BIMUK BLKHK 41. Swiss Small & MidCap Opportunities Fund BIMUK Nil 42. United Kingdom Fund BIMUK Nil 43. US Basic Value Fund BIMLLC Nil 44. US Dollar Core Bond Fund BFM Nil 45. US Dollar High Yield Bond Fund BFM Nil 46. US Dollar Reserve Fund BFM Nil 47. US Dollar Short Duration Bond Fund BFM Nil 48. US Flexible Equity Fund BIMLLC Nil 49. US Government Mortgage Fund BFM Nil 50. US Growth Fund BIMLLC Nil 51. US Small & MidCap Opportunities Fund BIMLLC Nil 52. World Agriculture Fund BIMUK Nil 53. World Bond Fund BIMUK BLKAus BFM 54. World Energy Fund BIMUK Nil 55. World Financials Fund BIMLLC Nil 56. World Gold Fund BIMUK Nil 57. World Healthscience Fund BIMLLC Nil 58. World Income Fund BIMUK Nil BFM 59. World Mining Fund BIMUK Nil 60. World Resources Equity Income Fund BIMUK Nil 61. World Technology Fund BIMUK Nil 10

17 Appendix B Available Share Class Information Fund Share Class Abbreviation Class Distributing Type Distribution Frequency Gross / Net Distribution Currency Hedged UK Reporting Status Asia Pacific Equity Income Fund 1. A2 USD A Non-Distributing USD 2. A5 HKD A Distributing (Q) Quarterly Gross HKD 3. A5 SGD A Distributing (Q) Quarterly Gross SGD Yes 4. A5 USD A Distributing (Q) Quarterly Gross USD 5. A6 HKD A Distributing (S) Monthly Gross HKD Yes 6. A6 USD A Distributing (S) Monthly Gross USD 7. C5 SGD C Distributing (Q) Quarterly Gross SGD Yes 8. C5 USD C Distributing (Q) Quarterly Gross USD Asian Dragon Fund 1. A2 EUR A Non-Distributing EUR 2. A2 GBP A Non-Distributing GBP 3. A2 USD A Non-Distributing USD 4. A4 GBP A Distributing (A) Annual Net GBP 5. C2 EUR C Non-Distributing EUR 6. C2 USD C Non-Distributing USD Asian Tiger Bond Fund 1. A1 USD A Distributing (D) Monthly* Net USD 2. A2 SGD A Non-Distributing SGD Yes 3. A2 USD A Non-Distributing USD 4. A3 HKD A Distributing (M) Monthly Net HKD Yes 5. A3 USD A Distributing (M) Monthly Net USD 6. A6 HKD A Distributing (S) Monthly Gross HKD Yes 7. A6 USD A Distributing (S) Monthly Gross USD 8. C1 USD C Distributing (D) Monthly* Net USD 9. C2 USD C Non-Distributing USD China Fund 1. A2 EUR A Non-Distributing EUR Yes 2. A2 HKD A Non-Distributing HKD 3. A2 SGD A Non-Distributing SGD Yes 4. A2 USD A Non-Distributing USD 5. A4 GBP A Distributing (A) Annual Net GBP Yes Yes 6. C2 SGD C Non-Distributing SGD Yes 7. C2 USD C Non-Distributing USD Continental European Flexible Fund 1. A2 EUR A Non-Distributing EUR 2. A2 USD A Non-Distributing USD 3. A4 EUR A Distributing (A) Annual Net EUR 4. A4 GBP A Distributing (A) Annual Net GBP 5. A4 GBP A Distributing (A) Annual Net GBP Yes 6. C2 EUR C Non-Distributing EUR * Distributions calculated daily 11

18 Fund Share Class Abbreviation Class Distributing Type Distribution Frequency Gross / Net Distribution Currency Hedged UK Reporting Status Emerging Europe Fund 1. A2 EUR A Non-Distributing EUR 2. A2 SGD A Non-Distributing SGD Yes 3. A2 USD A Non-Distributing USD 4. A4 EUR A Distributing (A) Annual Net EUR 5. A4 GBP A Distributing (A) Annual Net GBP Yes 6. C2 EUR C Non-Distributing EUR 7. C2 USD C Non-Distributing USD Emerging Markets Bond Fund 1. A1 EUR A Distributing (D) Monthly* Net EUR 2. A1 USD A Distributing (D) Monthly* Net USD 3. A2 EUR A Non-Distributing EUR 4. A2 EUR A Non-Distributing EUR Yes 5. A2 USD A Non-Distributing USD 6. A3 EUR A Distributing (M) Monthly Net EUR 7. A3 USD A Distributing (M) Monthly Net USD 8. A6 HKD A Distributing (S) Monthly Gross HKD Yes 9. A6 USD A Distributing (S) Monthly Gross USD 10. C1 USD C Distributing (D) Monthly* Net USD 11. C2 USD C Non-Distributing USD Emerging Markets Equity Income Fund 1. A2 USD A Non-Distributing USD 2. A5 USD A Distributing (Q) Quarterly Gross USD Emerging Markets Fund 1. A2 EUR A Non-Distributing EUR 2. A2 USD A Non-Distributing USD 3. C2 EUR C Non-Distributing EUR 4. C2 USD C Non-Distributing USD Euro Bond Fund 1. A1 EUR A Distributing (D) Monthly* Net EUR 2. A1 USD A Distributing (D) Monthly* Net USD 3. A2 EUR A Non-Distributing EUR 4. A2 USD A Non-Distributing USD 5. A3 EUR A Distributing (M) Monthly Net EUR 6. A3 USD A Distributing (M) Monthly Net USD 7. A4 EUR A Distributing (A) Annual Net EUR 8. A4 GBP A Distributing (A) Annual Net GBP 9. C1 EUR C Distributing (D) Monthly* Net EUR 10. C1 USD C Distributing (D) Monthly* Net USD 11. C2 EUR C Non-Distributing EUR 12. C2 USD C Non-Distributing USD * Distributions calculated daily 12