World Healthscience Fund

A sub-fund of BlackRock Global Funds (BGF)

Active Equities
April 2020

FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS, INSTITUTIONAL AND

PROFESSIONAL INVESTORS ONLY

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Morningstar rating as of 31 March, 2020. Past performance is not a reliable indicator of current or future results.
Within a highly fragmented sector
like healthcare, we believe that
intensive bottom-up research is
the best way to understand
prospects and uncover pricing
inefficiencies.
Erin Xie, Ph.D.
Portfolio Manager, BGF World Healthscience Fund
BlackRock Fundamental Active Equity

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Why Healthcare?
Setting the Scene

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 Top and Bottom Sectors Through Market Cycles
Early Cycle Mid Cycle Late Cycle Recession

Info Tech Info Tech Healthcare Healthcare

+10.6% +11.6% +7.0% +8.5%

Financials Telecoms* Energy Staples

+6.4% +1.5% +6.3% +7.8%

Market Return

Utilities Health Real Estate Materials

-12.0% -4.9% -2.8% -3.0%

Real Estate Staples Info Tech Financials

-19.8% -7.0% -3.1% -3.8%

The figures shown relate to past performance. Past performance is not a reliable indicator of current or future results. Index performance returns do not reflect any management
fees, transaction costs or expenses. Indices are unmanaged and one cannot invest directly in an index. Indices shown are sub-sectors of the MSCI All-Country World Index.
Sources: BlackRock and Bloomberg, 1st January 1989 to 31st December, 2018. All indices show total return. Cycles defined using OECD data. * As at 27 September2018, the
Telecoms sub-sector was reclassified as the Communication Services sub-sector.
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 Sector Performance
MSCI World Returns by Sector – 10 Years
16.0
Info Tech
14.0 Higher than average return & lower Higher than average return &
than average volatility higher than average volatility
12.0
Annualized Return (%)

Health Care
10.0 Cons Disc
8.0 Cons Stap
6.0 World Index
Industrials
4.0 Comm Serv Real Estate
Utilities
Financials
2.0
0.0 Materials

-2.0
Lower than average return & lower Lower than average return & Energy
-4.0 than average volatility higher than average volatility
-6.0
10.0 12.0 14.0 16.0 18.0 20.0 22.0 24.0
Standard Deviation (%)
MSCI World Returns by Sector – Calendar Year (%)
31/03/2015-31/03/2016 31/03/2016-31/03/2017 31/03/2017-31/03/2018 31/03/2018-31/03/2019 31/03/2019-31/03/2020
Communication Services 7.7 0.0 -1.4 6.6 -5.7
Consumer Discretionary -1.1 11.5 17.3 4.1 -11.9
Consumer Staples 8.7 4.1 3.5 6.3 -4.9
Energy -15.5 14.4 4.5 1.8 -46.2
Financials -10.1 25.7 14.9 -8.2 -21.1
Health Care -8.3 8.4 9.1 12.2 0.9
Industrials -0.8 16.6 15.3 -0.6 -17.5
Information Technology 3.8 23.9 27.3 12.6 7.2
Materials -13.2 25.4 15.1 -2.5 -18.9
Real Estate 0.8 2.2 5.9 12.9 -18.7
Utilities 6.9 3.9 4.9 14.1 -4.0
The figures shown relate to past performance. Past performance is not a reliable indicator of current or future results. Index performance returns do not reflect any management fees, transaction costs or
expenses. Indices are unmanaged and one cannot invest directly in an index.
Sources: BlackRock and Bloomberg, FactSet, 1st January 2009 to 31st March, 2020. All indices shown total return. Data points shown represent sub-sectors of the MSCI World Index.
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 Health Sciences: Why Now?

1 2 3
Idiosyncratic Attractive Cyclical Underpinned by
Opportunities Entry Point Secular Growth

Demand from a growing

Diverse opportunity set, with Health sector typically
aging population provides
significant dispersion of outperforms during late
long-term support for the
returns; providing a ripe cycle environments and
broader sector and this
environment for active stock shows low sensitivity to
transpires into increased
selection global growth
spending on healthcare.

Capital at Risk. All financial investments involve an element of risk. Therefore, the value of your investment and the income from it will vary and your initial investment amount
cannot be guaranteed. There is no guarantee that a positive investment outcome will be achieved. There is no guarantee that research capabilities will contribute to a positive
investment outcome. Diversification and asset allocation may not fully protect you from market risk.

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 Diversification Benefits
Recap: Industries within Healthcare

Healthcare Providers & Medical Devices &

Pharmaceuticals Biotechnology
Services Supplies

Companies engaged in the research, Providers of health services such as Products based on advanced genetic Manufacturers of medical
development or production of hospitals, clinics and management analysis and engineering. instruments and devices, including
medicine. companies. hospital supplies.
Also includes companies providing IT Encompasses companies enabling
services to healthcare providers. drug discovery by providing
analytical tools and research
services.
Ranked: Annual Sub-Industry Performance*
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 YTD
HC Providers & HC Providers & HC Providers & Medical Devices Medical Devices Medical Devices
Services Biotechnology Biotechnology Biotechnology Services Services & Supplies & Supplies & Supplies Biotechnology
6.4% 43.9% 66.9% 22.1% 12.0% 2.5% 32.9% 10.2% 32.7% -4.9%

Medical Devices HC Providers & HC Providers & Medical Devices Medical Devices HC Providers & HC Providers &
Pharmaceuticals & Supplies Services Services & Supplies & Supplies Services Services Pharmaceuticals Pharmaceuticals
5.7% 18.3% 39.5% 14.0% 8.0% 2.5% 26.6% 2.5% 21.5% -9.8%

Medical Devices HC Providers & Medical Devices

Biotechnology Pharmaceuticals Pharmaceuticals & Supplies Biotechnology Pharmaceuticals Biotechnology Pharmaceuticals Services & Supplies
5.2% 14.5% 32.0% 9.9% 7.9% -9.4% 18.7% 2.4% 20.4% -13.9%

Medical Devices HC Providers & Medical Devices HC Providers &

& Supplies Services & Supplies Pharmaceuticals Pharmaceuticals Biotechnology Pharmaceuticals Biotechnology Biotechnology Services
-7.2% 7.8% 30.3% 9.7% 5.2% -11.8% 14.2% -3.8% 20.2% -16.5%

The figures shown relate to past performance. Past Performance is not a reliable indicator of current or future results. Indexes are unmanaged and one cannot invest directly in an index.
*Not annualized. As of 31 March, 2020. Source, FactSet. Healthcare sub-industry groups are components of the S&P 1500 index. There is no guarantee that a positive investment
outcome will be achieved. There is no guarantee that research capabilities will contribute to a positive investment outcome. Diversification and asset allocation may not fully protect you
from market risk.
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Secular Growth

Percent of Population +65 years Projected healthcare spending per capita*

$19,000
40
$15,800

Per Capita Amount (USD)

$16,000

35
$13,000

30 $10,000

$7,000
25
% of population

$4,000
20

15 Healthcare spending as a percentage of GDP*

16.9%
10
Room to run

5 11.2% 11.2% 11.0% 10.9%

9.8%
8.8%

0
5.0%
3.6%

USA Europe China Japan U.S. Germany France Sweden Japan U.K. Italy China India

Source: United Nations, Department of Economic and Social Affairs, Population

Division (2017). World Population Prospects: The 2017 Revision, DVD Edition. *Source: Statista database, 2020. Values as of end 2018. Forecasts may not
Forecasts may not come to pass. come to pass.
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 Innovation Continues
New Molecular Entities (NME) & Biologics License Going to more productive areas
Applications
# of NME's per calendar year

70
60
50
53
40 45 26%
40 39 39
30 35
31 30 31 28
20 27 25
22 21
10 17
0
16%

NME/BLA Filings NME/BLA Approvals 9%

Novel drug approvals (NDA) accelerating

70 Oncology Hematology Neurology
59
60
48
# of approvals

50 45 46
39 41 Oncology, Hematology, and Neurology account
40
30 for over 50% of Breakthrough Requests.
30 26 27
24 22
21
20
10 Source: Center for Drug Evaluation and Research, Food and Drug Administration, U.S.
0 Department of Health and Human Services, “CDER New Drugs Program: 2019
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Update”. Data through 9/30/2019.
Novel Drug Approvals Any opinions, forecasts represent an assessment of the market environment at a
Source: Top chart: Center for Drug Evaluation and Research, Food and Drug specific time and is not intended to be a forecast of future events or a guarantee of
Administration, U.S. Department of Health and Human Services, “CDER New Drugs future results. This information should not be relied upon by the reader as research,
Program: 2019 Update”. *Data through 9/30/2019. Bottom chart: CDER, “New Drug
Therapy Approvals 2019”. NDA = Novel Drug Approval. investment advice or a recommendation. Forecasts may not come to pass.

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Innovation in Medical Devices

million Americans diagnosed with heart valve

>5 disease each year

>180k heart valve operations in the US each year

projected market size by 2021,from

>US$5 billion $2.6 billion in 2016

Revenue growth from TAVR

4,500
4,000
3,500
USD millions

3,000
2,500
2,000
1,500
1,000
500
0
2013 2014 2015 2016 2017 2018 2019
TAVR Surgical Heart Valve Critical Care
Source: Edwards LifeSciences, December 2019. Gartner Research, January 2017. Images are
for illustrative purposes only. There is no guarantee that any forecasts made will come to pass.
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 Innovation: Robotic Assisted Surgery

Surgical robots are already penetrating the US market

5000

4000
Installed Base (units)

3000

2000

1000

0
2013 2014 2015 2016 2017

>20% of US adults have been

diagnosed with arthritis >3% have joint replacement
surgery annually
>2x faster recovery time

Source Stryker, June 30, 2018. Gartner Research, December 2017. For illustrative purposes only.
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Innovation Continues: Next Generation Diabetes Monitoring
Population of Adults with Diabetes Worldwide Abbott’s Glucose Monitoring Device

2045 700 million 51%

increase

2030 578 million

2019 463 million

Continuous Glucose Monitoring Devices Market According to a study published

in The Lancet, people using the
CAGR: FreeStyle Libre system spent
13.9% $1.25
billion
38 percent less time within
hypoglycemia as compared
$437
with those who managed their
million glucose with traditional self-
2018 2026
monitoring glucose system.
Source: Reports and Data, Continuous Glucose Monitoring Devices Market Analysis, By Components (Insulin Pumps, Transmitters & Receivers, and Sensors), By End Use (Hospitals, Homecare settings and
others), Forecasts to 2026, November 2019. IDF Diabetes Atlas, 2019. Reference to the names of each company mentioned in this communication is merely for explaining the investment strategy, and
shouldnot be construed as investment advice or investment recommendation of those companies.Forecasts may not come to pass.
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 Healthcare’s next frontier: Gene Therapy

Innovation Application Opportunity

Gene therapy is an Many gene therapies The gene therapy

innovative today focus on market is expected
technique that rare genetic to grow at a CAGR
delivers a diseases and niche of >24% from
therapeutic gene orphan drugs, such 2019 to 2024,
to a target cell, as Spark reaching revenues
instead of a drug Therapeutics’ of >$6.6 billion
or antibody, to Luxturna treatment
treat or prevent for a rare, genetic
disease form of blindness

Source: Arizton, Cell and Gene Therapy Market – Global Outlook and Forecast 2019-2024, November 2019. For illustrative purposes only.

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A Turnaround Story: Sanofi
Under new management, the French pharmaceutical company is entering an
inflection point in its history after a period of stagnating growth

“ Ininnovation
line with our ambition to be an
leader, we have decided to
refocus on Specialty Care – in particular
oncology, immunology, rare diseases
and rare blood disorders – while
maintaining our commitment to Vaccines.
John Reed
”
Executive Vice President, Global Head of R&D
Previously at Roche
Source: Sanofi, 2019. The presented company is among the top 10 holdings of the Fund. Reference to the names of each company mentioned in this communication is merely for explaining the
investment strategy, and should not be construed as investment advice or investment recommendation of those companies. Any opinions, forecasts represent an assessment of the market
environment at a specific time and is not intended to be a forecast of future events or a guarantee of future results. This information should not be relied upon by the reader as research,
investment advice or a recommendation. Forecasts may not come to pass.

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Innovation in healthcare services: United HealthCare

The largest, most diversified national managed care provider and the leading healthcare services & IT company

Optum: Using data for a better client experience OptumHealth Revenue Growth Forecast ($Bil.)3

126 million individuals CAGR: +21%

in 150 countries served through Optum,
UnitedHealth's technology-focused arm $30 ~$28.0 bn.

Revenue in Billions of $USD

$25

$11-16 USD in savings $20

per member per month through OptumCare1 $15

$11.0 bn.
$10

9.2% employer cost reduction $5

$4.2 bn.

through OptumRx® partnership2

$0
2009 2014 2019E

Source: BlackRock, as of 3/31/2020. 1UnitedHealth analysis based on 5.4 million unique members. 2UnitedHealth Case Study, Dec. 2018. 3UnitedHealth at the Bernstein Strategic
Decisions Conference, May 2019. The presented company is among the top 10 holdings of the Fund. Reference to the names of each company mentioned in this communication is
merely for explaining the investment strategy, and should not be construed as investment advice or investment recommendation of those companies. All figures shown in USD. Any
opinions, forecasts represent an assessment of the market environment at a specific time and is not intended to be a forecast of future events or a guarantee of future results. This
information should not be relied upon by the reader as research, investment advice or a recommendation. Forecasts are sourced from UnitedHealth Group and may not come to pass.
Please see Appendix for risks relevant to the Fund.
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 Trading In-line With Long-run Average
Healthcare Relative Valuation

Prem/Discount to MSCI World: Using Weighted Average FY1 P/E

60%
Prem/Disc of Health Care to MSCI

50%
40%
30%
20%
10%
World

0%
-10%
-20%
-30%
Mar-00

Mar-11

Mar-14
Mar-98

Mar-99

Mar-01

Mar-02

Mar-03

Mar-04

Mar-05

Mar-06

Mar-07

Mar-08

Mar-09

Mar-10

Mar-12

Mar-13

Mar-15

Mar-16

Mar-17

Mar-18

Mar-19

Mar-20
Wgt Avg FY1 P/E Prem/Disc Long Run Avg +1 Std Dev -1 Std Dev

Healthcare Absolute Valuation

Weighted Average FY1 P/E

40
Weighted average FY1 P/E

35

30

25

20

15

10
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

Mar-20
Wgt Avg FY1 P/E Long Run Avg +1 Std Dev -1 Std Dev

Chart by BlackRock using data from: FactSet, BlackRock - Risk & Quantitative Analysis (RQA). Data through 31 March, 2020.
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BlackRock Health Sciences
Team & Process

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DNA of BlackRock Health Science Strategy
Giving you access to potential long-term global growth themes through dynamic healthcare
investing by industry experts

An average of 20 years of experience in Ideas generated through systematic research of

scientific research, medicine and investing;
Dedicated 6 person team
3 Ph.D. (biochemistry, chemistry, and
molecular medicine) 3 MBA’s and 1 MD degree
in internal medicine
Attend medical conferences and study clinical
trial data/designs and conduct field checks
with physicians
healthcare industries and companies
Heavy company interaction – 1000+ company
meetings per year (in-house + conferences + travel)
Regular due diligence with physicians to assess
therapeutic treatment trend, medical technology
Scientific Fundamental development, and market demand and dynamics
Experience Process
Determine upside potential and downside risk

Balanced exposure to four main industry groups –

Biotech, Pharma, Medical Devices and Healthcare
Providers & Services
Portfolio risk exposures are deliberate, diversified
and appropriately scaled
Top 10 holdings approx. 1/3 of Fund, large position
<10%
Diversified Flexible Global portfolio (investable universe is
approximately 1,000 companies globally)
All Cap (exposure to small, mid and large
companies)
Agnostic to Style (Value-Growth) and benchmark

70-120 holdings

Source: BlackRock. As of 3/31/2020. For illustrative purposes only. Subject to change. The number of holdings is indicative and actual numbers may fall outside the ranges
shown. There is no guarantee that a positive investment outcome will be achieved. There is no guarantee that research capabilities will contribute to a positive investment
outcome. Diversification and asset allocation may not fully protect you from market risk.
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ONLY. TO TO
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SHOWN OR OR
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DISTRIBUTED THE GENERAL
THE PUBLIC
GENERAL PUBLIC 18
 About the Team Portfolio Manager

Erin Xie, Ph.D. (27)

Managing Director

Portfolio Research Team

Chian Jiang, M.D., CFA (28) Xiang Liu, Ph.D. (23) Jeff Lee (15) Queenie Cheong, Ph.D. (11) Sriram Balasuryan (9)
Director Director Vice President Vice President Vice President

Dedicated Portfolio Strategists BlackRock Active Equity Platform

Titania Hanrahan Frank Piazza Ben Bei

Analysts across global
18
Director Associate Director
USA USA Asia platform dedicated to
Healthcare and related themes

Liz Nunez AJ Ziegler, CFA Quantitative analysts, risk

Associate
USA
Vice President
EMEA +1800 management and trading
professionals across the globe

Adam Kovacs, Analyst

Platform & Analytics Support
Source: BlackRock, 31 March, 2020. ( ) reflects number of years experience. For illustrative purposes only.
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 Investment Process

Sub-industry Company research Portfolio

Stock Selection
research & analysis & analysis Construction

Team analyzes healthcare
industry groups on an
ongoing basis
Key assessments are made
to generate investment
ideas
Provide context for
company analysis
Evaluate investment Leverage proven PM stock Active risk exposures are
potential through in-depth picking skills based on bottom-up
fundamental analysis fundamental and company
Strong and/or improving research
Determine upside/ downside industry or company
potential fundamental trends Risk mitigated via
diversification – Industry,
Extensive company Valuation market cap, country,
interaction across sector investment style, amongst
Collaborative process others
In-depth due diligence with between Analyst and PM
physicians and peer
companies

Risk Management
The Team utilizes BlackRock’s Risk and Quantitative Analysis team and BlackRock’s proprietary Aladdin ® system for
risk and scenario analysis, attribution, and hedging

Investment philosophy and process subject to change and provided here for illustrative purposes only. Risk management cannot fully eliminate the risk of investment loss.
Diversification and asset allocation may not fully protect you from market risk.
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Portfolio Characteristics &
Performance

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Portfolio Characteristics
BGF World Healthscience Fund 31 March 2020

Sector exposures (% NAV) Market cap (% NAV)

46.7 45.3
44.6

36.8

29.6 30.5
26.9 27.5

16.9 19.4
14.5 14.1 14.0 14.1
8.5
2.6 4.8
0.0 0.5 0.0
Pharmaceuticals Medical Devices & Health Car e Biotechnology Cash
Supplies Providers & Services <$2bn $2-10bn $10bn-100bn $100bn-200bn >$200bn

BGF World Healthscience Fund MSCI World Healthcare Index BGF World Healthscience Fund MSCI World Healthcare Index

Regional Exposure (% NAV) 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
67.0 67.6
where the issuer of the securities carries out much of their business. Allocations are
subject to change. Due to rounding, the total may not be equal to 100%.

Figures in USD. Indices are unmanaged and one cannot invest directly in an index.
24.5 23.6

6.5
2.2 3.6 2.6
0.0 0.0

Developed Developed Emerging Japan Cash

Americas Europe Markets

BGF World Healthscience Fund MSCI World Healthcare Index

Source: BlackRock. The Fund is actively managed and its composition will vary. Holdings shown are for illustrative purposes only and should not be deemed as a
recommendation to buy or sell the securities listed. Fund details, holdings and characteristics are as of the date noted and subject to change.
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 Portfolio Characteristics
BGF World Healthscience Fund 31 March 2020

Characteristics Fund MSCI World Healthcare

Wtd. Avg. Mkt Cap (mm) 96,723.93 118,719.17

Long-Term EPS Growth 8.0% 8.2%

LT Debt/Capital 33.4% 37.3%

Number of Holdings 109 145

% in Top 10 holdings 34.1% 36.8%

AUM (mm) 5,809 -

Top 10 Absolute Holdings Sub-sector Weight (%) Top 10 Overweight Holdings Sub-sector Active Weight (%)

Unitedhealth Group Inc Health Care Providers & Services 5.7 Sanofi Sa Pharmaceuticals 2.2

Roche Holding Ag Pharmaceuticals 4.9 Baxter International Inc Medical Devices & Supplies 1.5

Sanofi Sa Pharmaceuticals 4.1 Zoetis Inc Pharmaceuticals 1.4

Abbott Laboratories Medical Devices & Supplies 3.8 Teladoc Health Inc Health Care Providers & Services 1.2

Merck & Co Inc Pharmaceuticals 3.2 Edwards Lifesciences Corp Medical Devices & Supplies 1.2

Astrazeneca Plc Pharmaceuticals 2.9 Stryker Corporation Medical Devices & Supplies 1.1

Amgen Inc Biotechnology 2.5 Boston Scientific Corporation Medical Devices & Supplies 1.1

Zoetis Inc Pharmaceuticals 2.5 Abbott Laboratories Medical Devices & Supplies 1.1

Medtronic Plc Medical Devices & Supplies 2.3 Masimo Corporation Medical Devices & Supplies 1.1

Baxter International Inc Medical Devices & Supplies 2.2 Unitedhealth Group Inc Health Care Providers & Services 1.0

Figures in USD. Indices are unmanaged and one cannotinvest directly in an index.
Source: BlackRock. The Fund is actively managed and its composition will vary. Holdings shown are for illustrative purposes only and should not be deemed as a recommendation
to buy or sell the securities listed. Fund details, holdings and characteristics are as of the date noted and subject to change. 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.
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Positioning
BGF World Healthscience Fund
Absolute Sector Positioning by Quarter Relative Sector Positioning by Quarter
20%
100%

90% 15%

80%
10%
70%

5%
60%

50% 0%

40%
-5%
30%

-10%
20%

10% -15%

0%
31/03/2006

30/09/2011

31/03/2017
30/09/2006
31/03/2007
30/09/2007
31/03/2008
30/09/2008
31/03/2009
30/09/2009
31/03/2010
30/09/2010
31/03/2011

31/03/2012
30/09/2012
31/03/2013
30/09/2013
31/03/2014
30/09/2014
31/03/2015
30/09/2015
31/03/2016
30/09/2016

30/09/2017
31/03/2018
30/09/2018
31/03/2019
30/09/2019
31/03/2020

-20%

Sep-14

Sep-17
Sep-15

Sep-16

Sep-18

Sep-19
Jun-14

Jun-15

Jun-16

Jun-17

Jun-18

Jun-19
Mar-16
Mar-15

Mar-17

Mar-18

Mar-19

Mar-20
Dec-14

Dec-15

Dec-16

Dec-17

Dec-18

Dec-19
Biotechnology Health Care Providers & Services
Biotechnology Pharmaceuticals
Medical Devices & Supplies Pharmaceuticals
Medical Devices & Supplies Health Care Providers & Services Other/Cash

Source: BlackRock as of 31 March, 2020. Excludes the Other/Cash category and forces summation to 100%.
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AND PROFESSIONAL PUBLIC
INVESTORS ONLY 24
 Performance
BGF World Healthscience Fund
31 March 2020
Net total return in USD (annualized %)

15.77

12.23
11.20
9.20 9.12 8.45

2.03
0.89

-8.28

-12.29
3/31/2019-3/31/2020 3/31/2018-3/31/2019 3/31/2017-3/31/2018 3/31/2016-3/31/2017 3/31/2015-3/31/2016
BGF World Healthscience A2 MSCI World Healthcare Net Index

The figures shown relate to past performance. Past performance is not a reliable indicator of current or future results and should not be the sole factor of
consideration when selecting a product or strategy.

Source: BlackRock. Performance shown for the A2 share class in (USD) on a NAV price basis with income reinvested. Fund inception: 06 April 2001. Performance
figures are calculated net of annual fees. Index returns are for illustrative purposes only. Index performance returns do not reflect any management fees, transaction
costs or expenses. Indices are unmanaged and one cannot invest directly in an index.

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INVESTORS ONLY 25
 BGF World Healthscience Fund: A Risk-Aware Approach
14
Higher than average return & Higher than average return &
lower than average volatility higher than average volatility
13

12
BGF World
Healthscience Fund
Annualized Return (%)

11

10

9
Peer group average

Lower than average return & Lower than average return &
lower than average volatility higher than average volatility
6
10 12 14 16 18 20 22
Standard Deviation (Volatility)
The figures shown relate to past performance. Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when
selecting a product or strategy. Data as of 31st March, 2020. Time Period: 10-Years using monthly returns. Source: Morningstar Direct . Healthcare Mutual Funds are those
Funds classified in the Morningstar Healthcare category. Excludes multiple share classes.
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INVESTORS ONLY 26
 Performance
BGF World Healthscience Fund
Net total return in USD (annualized %) 31 March 2020

11.7 11.4
8.9 9.3
7.3
5.1 4.7 4.2
2.0 2.3
0.9

-2.2

-11.2 -11.5 -11.7

YTD* 1 year 3 year 5 year Since PM Inception**

BGF World Healthscience A2 MSCI World Healthcare Net Index Morningstar EAA OE Sector Equity Healthcare Average

Morningstar EAA OE Sector Equity Healthcare

Time period Number of funds Total return percentile
1-year 408 20th
3-year 296 8th
5-year 243 14th
Since PM Inception** 177 20th

The figures shown relate to past performance. Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when
selecting a product or strategy.

Source; BlackRock. *Not annualised. ** PM Inception date: 01 April, 2011. Source: Morningstar. Morningstar Peer Group: EAA OE Sector Equity Healthcare. Performance shown for
the A2 share class in (USD) on a NAV price basis with income reinvested. Performance figures are calculated net of annual fees and annualised for periods greater than 1 year. Index
returns are for illustrative purposes only. Index performance returns do not reflect any management fees, transaction costs or expenses. Indices are unmanaged and one cannot
invest directly in an index.
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Active Equities Platform

AEM0420E-1145340-28/46
FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS, INSTITUTIONAL AND PROFESSIONAL INVESTORS ONLY
• Designed to The BlackRock
Deliver … Active Equities Difference
We pursue above-market returns across an industry-leading
Tailored to product range ― all within an ecosystem specifically architected
Outcomes client needs and consistently powered by a deep focus on risk management,
technological innovation and long-term sustainability.

We have pioneered the integration of human insight and cutting-

Targeting edge technology to revolutionize the stock-selection process.
Returns lifetime goals This, we believe, is key to uncovering return-enriching ideas and
securing a performance advantage.

Our full range of alpha solutions aims to respond to the unique

Convenience To build better needs of investors in every community in which we operate, while a
and value portfolios deliberate approach to pricing ensures fees are aligned to our clients’
risk/return expectations.

Our industry-defining investment and risk-management platform

To see risks allows our investors enhanced visibility to ensure the risks taken are
Transparency clearly deliberate, diversified and properly scaled. Customized tools facilitate
informed decision-making, operational flexibility and efficient trading.
There is no guarantee that a positive investment outcome will be achieved.
Source: BlackRock, as December 31, 2019. While proprietary technology platforms may help manage risk,
risk cannot be eliminated.
AEM0420E-1145340-29/46
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Solutions deliberately designed to meet client needs

1 2 3 4
Systematic High Conviction Specialized Precision
Alpha Alpha Outcomes Alpha

Consistent, risk- Concentrated, high Seek steady income Megatrends/

managed alpha conviction long-only through dividend thematics
potential driven by strategies
innovative Unconstrained Specific country,
technologies strategies Capital appreciation sector and specialty
potential exposures
Broad, diversified Absolute Return
core exposures Sustainable Easy way to
investing through express a tactical
Low cost* ESG strategies investment view

Source: BlackRock, as of December 31, 2019. This information is for illustrative purposes only. It is not to be interpreted as investment advice or as a recommendation to invest in any of the
BlackRock products or strategies. *As compared to other active funds.

For Institutional/Qualified Investor Use Only AEM0420E-1145340-30/46

FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS, INSTITUTIONAL AND PROFESSIONAL INVESTORS ONLY
3
0
Appendix
A. Healthcare during presidential election
B. Stock examples
C. Biographies of key investment professionals
D. Important Notes

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Health Care headed into the 2020 Presidential Election
Short-Term volatility from the US Election may present an attractive Long-Term entry point for Health Care

2020 US Election scenarios for Health Care: US Election: Medicare-for-All Odds

Case #1: Trump is Re-elected, Split Congress

• More status quo for most of Health Care
• The Trump Administration will continue to push for certain
healthcare priorities such as drug pricing.

Case #2: Democrats win Presidency, Split Congress

• As evidenced by debates, the party is split on Medicare-for
All-policies (Bernie Sanders and Elizabeth Warren most
favorable)
• Most candidates more than willing to address drug pricing.

Case #3: Democrats win Presidency, Control both Houses

• The most important considerations are: which Democratic
candidate is the winner and how many seats the Democrats
pick up in the Senate. 60 of 100 is a key (but unlikely) mark.
• More moderate public option Medicare buy-in more likely.
Source: BlackRock, November 2019. Research in this document has been produced and may be
acted on by BlackRock for its own purposes. The views expressed are those of the Investment
Team. They do not constitute investment advice and are subject to change.

Image Source: Reuters. U.S. Democratic presidential candidates 2020 election debate, October 15, 2019.
From left to right: Senator Bernie Sanders, former Vice President Joe Biden and Senator Elizabeth Warren Source: Capital Alpha Partners, October 6th, 2019. Forecasts may not come to pass.

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Health Care headed into the 2020 Presidential Election
Health Care stocks are trading a significant discount relative to history* and other defensive sectors
Forward P/E (S&P 500 Sectors) Health Care Relative Valuation
Prem/Discount to MSCI World: Using Weighted Average FY1 P/E
60%

Prem/Disc of Health Care to MSCI World

50%
40%
30%
20%
10%
0%
-10%
-20%
-30%

2018
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017

2019
Wgt Avg FY1 P/E Prem/Disc Long Run Avg
+1 Std Dev -1 Std Dev
*Compared to periods starting from 1997 as indicated on chart. Source: Chart by BlackRock using data from FactSet, BlackRock Risk Quantitative Analysis
Source: UBS as of September 2019 (Data through 31 October, 2019).

Our view on current market conditions for the health industry

Short-Term Long-Term
Discounted valuations creates an attractive entry point We are very optimistic about healthcare due to many factors:
• Investor concern on the U.S. presidential election • Demographic trends are favorable for the health sciences
and potential for “Medicare for All”. industry as populations are growing older and need to
• Our view is that such drastic changes are unlikely, as spend more healthcare.
such a program would costs trillions of dollars, and • Innovation across multiple areas in healthcare.
how to pay for it is a huge challenge. • Emerging countries will increase spending in healthcare
• Democrats are also divided on this topic. as their economies grow.
Source: BlackRock, March, 2020. Research in this document has been produced and may be acted on by BlackRock for its own purposes. The views expressed are those of the Investment Team. They do not
constitute investment advice and are subject to change. Forecasts may not come to pass.
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 Health Care headed into the 2020 Presidential Election
Performance in the 12 months leading into
US Presidential Election

30%
Historically, Health Care
has outperformed headed
into a US election
20%
+16.6%

+9.2% +8.6% +9.3%

10%
+5.5%
12-Month Return in USD

0%

-5.1% -5.6%
-10%

-20%

-30%

-40%
1996 Election 2000 Election 2004 Election 2008 Election 2012 Election 2016 Election Average

MSCI World Total Return MSCI World Healthcare Index Health Care Relative Performance
The figures shown relate to past performance. Past performance is not a reliable indicator of current or future results and s hould not be the sole factor of consideration when selecting a product or strategy.
Source: Morningstar as of September 30, 2019. Performance measured during the 12-months headed into a US Presidential Election
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The Healthcare Sector – What’s In It:
Abbott Laboratories

Abbott is a market leader for cutting-edge technologies in cardiovascular, diabetes and neuromodulation care

Continuous Glucose Monitoring Penetration

of Type 1 and Type 2 Insulin Intensive FreeStyle Libre: Continuous Glucose
Diabetes Patients (US/EU) Monitoring
25%

20%

15%

10%

5%

0%
2010 2011 2012 2013 2014 2015 2016 2017 2018
Medtronic CGM DexCom CGM ABT Freestyle Libre

Source: BlackRock, as of 12/31/2019. Reference to the names of each company mentioned in this communication is merely for explaining the investment strategy, and
should not be construed as investment advice or investment recommendation of those companies. All figures shown in USD. Images are for illustrative purposes.
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 The Healthcare Sector – What’s In It: Boston Scientific

Boston Scientific is poised for continued growth due to their investment in a differentiated pipeline of products

Rev $1.6B
Products & Services Rev $2.4B
Growth Investment Thesis
Growth +6%
+12%
• BSX has developed a sub-
cutaneous ICD that enables Rev $1.1B
Rev $1.1B • BSX is poised to accelerate its
detection of arrhythmia Growth growth in 2019 and beyond
Growth +7%
+12%
without implant of leads in driven by multiple new
the heart, addressing major Rev $0.6B product launches in multi-
Rev $1.9B
issue of traditional ICD which Growth +2%
Growth billion peripheral vascular
+14%
are susceptible to lead and structural heart disease
infection. The development of Rev $0.3B markets currently not served
coronary stents that have Growth by BSX. Its strong top-line
+14%
reduced the rate of post- growth should translate into
operation problems by half in peer leading earning growth
some cases. due to operating
• The firm has also developed a infrastructure leverage.
stroke prevention device
(Sentinel).

Source: BlackRock, as of 12/31/2019. Reference to the names of each company mentioned in this communications is merely for explaining the investment strategy, and
should not be construed as investment advice or investment recommendation of those companies. All figures shown in USD. Images are for illustrative purposes.
ICD: implantable cardioverter-defibrillator
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Portfolio Manager

Erin Xie, PhD, Managing Director and portfolio manager, is the head of the Health Sciences team, part of
BlackRock’s Active Equity Group. She is the portfolio manager for the Health Sciences equity portfolios.

Ms. Xie's service with the firm dates back to 2001, including her years with State Street Research & Management
(SSRM), which merged with BlackRock in 2005. At SSRM, she was a Senior Vice President and portfolio manager
responsible for managing the State Street Health Sciences Fund. Prior to joining State Street Research in 2001, Ms.
Xie was a research associate with Sanford Bernstein covering the pharmaceutical industry from 1999. From 1994
until 1997, she was a post doctoral research scientist at Columbia University.

Ms. Xie earned a BS degree in chemistry from Beijing University in 1988, a PhD degree in Biochemistry from the
University of California, Los Angeles, in 1993 and a MBA degree from the Massachusetts Institute of Technology
Erin Xie Sloan School of Management in 1999.

As of 31 March, 2020. Subject to change.

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Portfolio Team
Chian Jiang, M.D., CFA, Director, is a member the Health Sciences team, part of BlackRock’s Active Equity Group. She is
a research analyst responsible for coverage of the biotechnology and pharmaceuticals sectors.

Prior to joining BlackRock in 2009, Ms. Jiang was a senior analyst at RiverSource Investments covering pharmaceuticals,
biotechnology, and medical technology companies. From 2003 to 2005, Ms. Jiang was an associate portfolio manager
and analyst at Lee Munder Capital Group, where she was responsible for coverage of the healthcare sector within the
firm's Med Science Hedge Fund. Previously, she was a healthcare analyst for long-only and long/short funds at Westfield
Capital Management and at Delta Partners. Prior to beginning her investment career, Ms. Jiang was a research associate
at Brigham and Women's Hospital/Boston University Hospital from 1989 to 1996 and a senior research associate at
Millennium Pharmaceuticals from 1996 to 1999.
Chian Jiang Ms. Jiang earned a MD degree in internal medicine from Beijing University in 1986, a MPH degree in biostatistics from
Boston University in 1991, and a MBA degree from the Massachusetts Institute of Technology Sloan School of
Management in 2001.

Xiang Liu, PhD, Director, is a member of the Health Sciences team, part of BlackRock’s Active Equity Group. He is
responsible for coverage of the medical devices and specialty pharmaceuticals sectors.

Prior to joining BlackRock in 2008, Mr. Liu was a partner and biotech analyst at Mehta Partners. From 2002 to 2005,
he was a Director in the corporate development department at Cubist Pharmaceuticals. Mr. Liu began his investment
career in 2000 at the Boston Consulting Group as a health care consultant.

Mr. Liu earned a BS degree in Chemistry from the University of Science & Technology, China in 1993, a PhD degree in
Chemistry from Yale University in 1997, and a MBA degree in finance, strategy, and accounting from the University of
Chicago in 2000.
Xiang Liu

Jeffrey Lee, Vice President, is a member of the Health Sciences team, part of BlackRock’s Active Equity Group. He
is responsible for coverage of the healthcare providers and services sectors.

Prior to joining BlackRock in 2011, Mr. Lee was a member of the healthcare investment team at Duquesne Capital
Management where he covered provider and service companies. From 2006 to 2008, Mr. Lee was an healthcare
private equity associate at Altaris Capital Partners where he sourced and analyzed equity transactions for public and
private healthcare companies. Prior to 2006, Mr. Lee was an analyst at Citigroup within the healthcare finance and
investment banking group where he valued and helped structured financing for managed care providers, hospital
companies and other large healthcare systems.
Jeffrey Lee
Mr. Lee earned a BA degree in economics, cum laude, from Princeton University in 2004. As of 31 March, 2020. Subject to change.

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Portfolio Team

Queenie Cheong, Ph.D., Vice President, is a member of the Health Sciences team, part of BlackRock’s Active Equity Group. She is
responsible for coverage of the biotechnology and pharmaceuticals sectors.

Prior to joining BlackRock in 2018, Ms. Cheong was a Senior Analyst at McKinsey, specialized in devising business strategy and
performing due diligence for companies in the Pharmaceutical & Medical Products practice. From 2008 to 2011 Dr. Cheong supported
front line research operations at Chemocentryx, an early stage biopharmaceutical company.

Dr. Cheong earned a BS degree in Bioengineering from UC Berkeley in 2008 and a PhD degree in Molecular Medicine from Cleveland
Clinic - Case Western Reserve University in 2018.

Queenie Cheong

Sriram Balasuryan., Vice President, , is a member of the Health Sciences team, part of BlackRock’s Active Equity Group. He is
responsible for coverage of pharmaceuticals and biotechnology sectors, with a focus on specialty pharma.

Prior to joining BlackRock in March 2020, Mr. Balasuryan was a member of the healthcare investment team at T. Rowe Price, where he
covered specialty pharma and biotechnology. From 2013 to 2015, Mr. Balasuryan was a healthcare analyst at Partner Fund
Management where he covered medical devices and healthcare services. Prior to 2013, Mr. Balasuryan was an investment banking
analyst at Goldman Sachs where he advised clients on M&A, IPO’s, and other capital deployment alternatives within the healthc are
sector.

Mr. Balasuryan earned a BA degree in finance and accounting, magna cum laude, from Georgetown University in 2011.

Sriram Balasuryan

As of 31 March, 2020. Subject to change.

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Annual Performance
BGF World Healthscience Fund
Net total return in USD (%)

2019 2018 2017 2016 2015 2014 2013

BGF World Healthscience Fund A2 24.36 4.98 21.78 -8.02 4.56 24.40 43.09

MSCI World Healthcare Index 23.24 2.51 19.80 -6.81 6.60 18.10 36.27

The figures shown relate to past performance. Past performance is not a reliable indicator of current or future results and should not be the sole factor of
consideration when selecting a product or strategy.

Performance is shown as of 31 December 2019 in US$ on a NAV price basis with income reinvested. Performance figures are calculated net of annual fees.
Source: BlackRock as of 31 December 2019. Portfolio performance is of the BGF World Healthcare Fund A2 Share Class. Index performance is shown for
illustrative purposes only. Index performance returns do not reflect any management fees, transaction costs or expenses. Indices are unmanaged and one
cannot invest directly in an index.
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Risks
Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. The investor may not get back the amount originally
invested.

Past Performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy.

Changes in the rates of exchange between currencies may cause the value of investments to diminish or increase. Fluctuation may be particularly marked in the case of a
higher volatility fund and the value of an investment may fall suddenly and substantially. Levels and basis of taxation may change from time to time.

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Risks
Fund Specific Risks for the BGF World HealthscienceFund

Concentration Risk: Investment risk is concentrated in specific sectors, countries, currencies or companies. This means the Fund is more sensitive to any localised
economic, market, political or regulatory events.

Equity Risk: The value of equities and equity-related securities can be affected by daily stock market movements. Other influential factors include political, economic
news, company earnings and significant corporate events.

Currency Risk: Active management of currency exposure through derivatives may make the Fund more sensitive to changes in foreign exchange rates. If the currency
exposures against which the Fund is hedged appreciates investors may not benefit from such appreciation.

Counterparty Risk: The insolvency of any institutions providing services such as safekeeping of assets or acting as counterparty to derivatives or other instruments, may
expose the Fund to financial loss.

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Important Information
This material is for distribution to Professional Clients (as defined by the FCA or MiFID Rules) and Qualified Investors only and should not be relied upon by
any other persons.
Issued by BlackRock Investment Management (UK) Limited, authorised and regulated by the Financial Conduct Authority. Registered office: 12
Throgmorton Avenue, London, EC2N 2DL. Tel: + 44 (0)20 7743 3000. Registered in England and Wales No. 2020394. For your protection telephone
calls are usually recorded. BlackRock is a trading name of BlackRock Investment Management (UK) Limited.
In the event where the United Kingdom leaves the European Union without entering into an arrangement with the European Union which permits firms in
the United Kingdom to offer and provide financial services into the European Union (“No Deal Brexit Event”), the issuer of this material is:
- BlackRock Investment Management (UK) Limited for all outside of the European Economic Area; and
- BlackRock (Netherlands) B.V. for in the European Economic Area,
however, prior to a No Deal Brexit Event and where a No Deal Brexit Event does not occur, BlackRock Investment Management (UK) Limited will be the
issuer.
When this document is issued in the EEA, it is issued by BlackRock (Netherlands) B.V.: Amstelplein 1, 1096 HA, Amsterdam, Tel: 020 – 549 5200, Trade
Register No. 17068311. For more information, please see the website: www.blackrock.com. For your protection, telephone calls are usually recorded.
BlackRock is a trading name of BlackRock (Netherlands) B.V..
BlackRock Global Funds (BGF) is an open-ended investment company established and domiciled in Luxembourg which is available for sale in certain
jurisdictions only. BGF is not available for sale in the U.S. or to U.S. persons. Product information concerning BGF should not be published in the U.S.
BlackRock Investment Management (UK) Limited is the Principal Distributor of BGF. Subscriptions in BGF are valid only if made on the basis of the current
Prospectus, the most recent financial reports and the Key Investor Information Document, which are available on our website. Prospectuses, Key Investor
Information Documents and application forms may not be available to investors in certain jurisdictions where the Fund in question has not been
authorised.

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Important Information
Austria: For further information, the prospectus, Key Investor Information Document, annual report and semi-annual report can be obtained free of charge
in hardcopy form from the Austrian paying agent: Raiffeisen Zentralbank Österreich AG, A-1030 Vienna, Am Stadtpark 9.
Netherlands: The risk indicator shown on this document refers to the A2 share class of the Fund. Higher or lower risk may apply to the other share classes
of the Fund. BlackRock Global Funds ("BGF") is a UCITS (icbe) as defined in section 1:1 Financial Markets Supervision Act (Wet op het financieel toezicht;
"FMSA"). BGF and its sub funds are listed in the register as defined in section 1:107 FMSA. Please refer to the Key Investor Information Document
(essentiële beleggersinformatie; "EBI") for further information about BGF and its sub-funds. The prospectus and EBI of BGF and its sub funds are available
on BlackRock's website www.BlackRock.nl. All financial investments contain a certain risk. The value of the assets managed by BGF and its sub-funds may
greatly fluctuate as a result of the investment policy and your initial investment is not guaranteed
Germany: This is a financial promotion. For further information, the prospectus, Key Investor Information Document, annual report and semi-annual report
can be obtained free of charge in hardcopy form from the German information centre: BlackRock Investment Management (UK) Limited, German Branch,
Frankfurt am Main, Bockenheimer Landstraße 2–4, 60306 Frankfurt am Main.The paying agent in Germany is J.P. Morgan AG, CIB / Investor Services –
Trustee & Fiduciary, Taunustor 1 (Taunus Turm), D-60310 Frankfurt am Main.
Poland: BGF has been registered on the official list of the Financial Supervision Commission (Komisja Nadzoru Finansowego) for distribution in Poland.
Paying agent in Poland is Bank Handlowy w Warszawie SA, ul. Senatorska 16, 00-950 Warsaw, Poland.
Portugal: Certain share classes of certain BGF funds are registered with the Comissão do Mercado de Valores Mobiliários (CMVM) and the Prospectus for
each registered fund has been registered with the CMVM. This document contains products or services of BlackRock, Inc. (or affiliates thereof) that might
be offered directly or indirectly within the Andorran jurisdiction, and it should not be regarded as solicitation of business in any jurisdiction including the
Principality of Andorra.
Spain: Certain funds mentioned here are registered for distribution in Spain. Additionally, certain funds are registered for distribution in Portugal. In Spain,
BlackRock Global Funds (BGF) is registered with the number 140 in the Comisión Nacional del Mercado de Valores de España (CNMV) and the
Prospectus for each registered fund has been registered with the CNMV.
Switzerland: The BlackRock Global Funds (BGF) World Healthscience Fund is domiciled in Luxembourg. BlackRock Asset Management Schweiz AG,
Bahnhofstrasse 39, CH-8001 Zurich, is the Swiss Representative and State Street Bank International GmbH, Munich, Zurich Branch, Beethovenstrasse
19, CH-8002 Zurich, the Swiss Paying Agent. The Prospectus, Key Investor Information Document, the Articles of Incorporation, the latest and any
previous annual and semi-annual reports are available free of charge from the Swiss Representative. Investors should read the fund specific risks in the
Key Investor Information Document and the Prospectus.

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Important Information
Sweden: The prospectus and KIID are available at BlackRock (Netherlands) BV, Stockholm branch, Norrlandsgatan 16, 111 43 Stockholm, Sweden.
Investors should read the KIID before making an investment decision.
Finland: The prospectus (in English language) and KIID (in Finnish language) are available at BlackRock (Netherlands) BV.
Norway: The prospectus and KIID are available at at BlackRock (Netherlands) BV.
The BlackRock Global Funds (BGF) are domiciled in Luxembourg and are registered for distribution in Liechtenstein. Representative and paying agent in
Liechtenstein is VP Bank, represented by VP Fund Solutions (Liechtenstein) AG, FL-9490 Vaduz. The Prospectus, the Key Investor Information Document,
as well as the latest annual and semi-annual reports, can be obtained free of charge from the representative / paying agent in Liechtenstein.
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