Royal London BlackRock Emerging Markets Equity Index Fund

The RL BlackRock Emerging Markets Equity Index Fund invests in equities from global emerging markets and is passively managed to reflect the return of those markets. It mainly holds large companies in countries such as Taiwan, Korea, China and India, with major sector exposure to information technology and financials. The fund is designed to track the MSCI Emerging Markets Index rather than try to outperform it.

The RL BlackRock Emerging Markets Equity Index Fund is index-tracking, so its aim is to mirror the performance of the MSCI Emerging Markets Index instead of selecting shares in an attempt to beat it. Its underlying fund is the iShares Emerging Markets Index Fund (IE), which BlackRock manages. This can make the fund’s holdings and performance pattern closely tied to the benchmark.

The RL BlackRock Emerging Markets Equity Index Fund is intended for medium to long-term investing, with a recommended horizon of at least 7 years. It is expected to be more volatile because it has high exposure to equities. In plain language, volatility means the fund’s value can rise and fall quite sharply over shorter periods.

The RL BlackRock Emerging Markets Equity Index Fund is exposed to market fluctuations, capital returns risk, currency risk, counterparty risk and liquidity risk. Currency risk means changes in exchange rates can help or hurt returns for investors when holdings are priced in different currencies. Because it invests in emerging markets equities, share prices and market conditions may be more unpredictable than in developed markets.

The RL BlackRock Emerging Markets Equity Index Fund has its biggest country exposures in Taiwan, Korea, China and India, with additional holdings in markets such as Brazil, South Africa, Saudi Arabia and Mexico. Its largest sector weights are in information technology, financials and consumer discretionary. The fund’s top holdings include Taiwan Semiconductor Manufacturing, Samsung Electronics, Tencent and HDFC Bank.