BlackRock Alpha Strategies Fund | XGPIX | Institutional (2024)

Review the MSCI methodology behind the Sustainability Characteristics and Business Involvement metrics: 1ESG Fund Ratings; 2Index Carbon Footprint Metrics; 3Business Involvement Screening Research; 4ESG Screened Index Methodology; 5ESG Controversies; 6MSCI Implied Temperature Rise

For funds with an investment objective that include the integration of ESG criteria, there may be corporate actions or other situations that may cause the fund or index to passively hold securities that may not comply with ESG criteria. Please refer to the fund’s prospectus for more information. The screening applied by the fund's index provider may include revenue thresholds set by the index provider. The information displayed on this website may not include all of the screens that apply to the relevant index or the relevant fund. These screens are described in more detail in the fund’s prospectus, other fund documents, and the relevant index methodology document.

Certain information contained herein (the “Information”) has been provided by MSCI ESG Research LLC, a RIA under the Investment Advisers Act of 1940, and may include data from its affiliates (including MSCI Inc. and its subsidiaries (“MSCI”)), or third party suppliers (each an “Information Provider”), and it may not be reproduced or redisseminated in whole or in part without prior written permission. The Information has not been submitted to, nor received approval from, the US SEC or any other regulatory body. The Information may not be used to create any derivative works, or in connection with, nor does it constitute, an offer to buy or sell, or a promotion or recommendation of, any security, financial instrument or product or trading strategy, nor should it be taken as an indication or guarantee of any future performance, analysis, forecast or prediction. Some funds may be based on or linked to MSCI indexes, and MSCI may be compensated based on the fund’s assets under management or other measures. MSCI has established an information barrier between equity index research and certain Information. None of the Information in and of itself can be used to determine which securities to buy or sell or when to buy or sell them. The Information is provided “as is” and the user of the Information assumes the entire risk of any use it may make or permit to be made of the Information. Neither MSCI ESG Research nor any Information Party makes any representations or express or implied warranties (which are expressly disclaimed), nor shall they incur liability for any errors or omissions in the Information, or for any damages related thereto. The foregoing shall not exclude or limit any liability that may not by applicable law be excluded or limited.

Carefully consider the Funds' investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds' prospectuses or, if available, the summary prospectuses, which may be obtained by visiting the iShares Fund and BlackRock Fund prospectus pages. Read the prospectus carefully before investing.

The information for these funds is provided for informational purposes only and does not constitute a solicitation of an offer to buy or sell Fund shares.

Performance results reflect past performance and are no guarantee of future results. Current performance may be lower or higher than the performance data quoted. All returns assume reinvestment of all dividends. The market value and net asset value (NAV) of a fund's shares will fluctuate with market conditions.

The Fund’s investment program entails risk. There can be no assurance that the investment objective of the Fund or those of the private investment vehicles commonly referred to as “hedge funds” (“Portfolio Funds”) that are managed by third-party investment management firms not affiliated with the Advisor (each, a “Manager”) will be achieved or that their investment programs will be successful. A summary of certain risks associated with an investment in the Fund is set forth below. It is not complete and you should read and consider carefully the more detailed description of the risks associated with an investment in the Fund described in the Fund’s current prospectus (the “Prospectus”) before purchasing Shares. Capitalized terms used but not defined herein have the meanings ascribed to them in the Prospectus.

The Fund’s ability to achieve its investment objective depends upon BlackRock Advisors, LLC's (the "Advisor") skill in determining the Fund’s allocation among Portfolio Funds and in selecting the best mix of Managers. The value of your investment may decrease if the Advisor’s judgment about the attractiveness, value or market trends affecting a particular Manager or Portfolio Fund strategy is incorrect. The various Portfolio Fund strategies may not always be complementary, which could adversely affect the performance of the Fund.

Investments in Portfolio Funds may be or may become illiquid, their marketability may be restricted and the realization of investments from them may take considerable time and/or be costly, in particular because Portfolio Funds may have restrictions that allow redemptions only at specific infrequent dates with considerable notice periods and apply lock-ups, gates and/or redemption fees. The Fund’s ability to withdraw monies from or invest monies in Portfolio Funds with such restrictions will be limited, and such restrictions will limit the Fund’s flexibility to reallocate such assets among Portfolio Funds. In addition, Portfolio Funds may have the ability to indefinitely suspend the right of their investors to redeem their investment during periods of exceptional market conditions, and such suspensions may occur for an extended period of time or as a prelude to liquidation of the Portfolio Fund. Portfolio Funds may also impose “gates,” which are limitations on the amount of a Portfolio Fund’s net assets that may be redeemed in any one redemption cycle. It may therefore be difficult for the Fund to sell or realize its investments in the Portfolio Funds in whole or in part.

The Fund’s investments in Portfolio Funds are ordinarily valued based upon valuations provided by the Managers of such Portfolio Funds or, in many cases, the administrators of those Portfolio Funds. Certain securities in which the Portfolio Funds invest may not have a readily ascertainable market price and are fair valued by the Managers and/or their administrators. A Manager may face a conflict of interest in valuing such securities since their values affect the Manager’s compensation. The Advisor will review and perform due diligence on the valuation procedures used by each Portfolio Manager and BAA will monitor the returns provided by the Portfolio Funds. However, neither the Advisor nor the Board is able to confirm the accuracy of valuations provided by Managers or their administrators. Inaccurate valuations provided by Portfolio Funds could materially adversely affect the value of Shares, which determine the value at which investors acquire Shares of the Fund and the amounts that shareholders receive upon any repurchases of Shares by the Fund. Illiquid investments may be harder to value, potentially increasing risks regarding valuation.

Some of the Portfolio Funds may hold a portion of their investments, in particular investments that are illiquid, in so-called “side pockets.” Side pockets are sub-funds or other special allocations within a Portfolio Fund that create a structure to invest in illiquid or hard to value securities or other investments and are valued independently from the general portfolio with distinct allocation, distribution and redemption terms and are generally held only by those investors existing at the time of investment or at the time the side pocket is created. There is no limit to the amount that the Fund may invest in Portfolio Funds with side pockets nor on the aggregate size of side pockets. Were the Fund to request redemption from a Portfolio Fund that distributed side pocket(s) to satisfy a portion of such redemption, the portion of the Fund’s interest in the Portfolio Fund’s side pockets would generally require a much longer period of time to realize than the redemption from the main portfolio and, during the period of liquidation of the side pockets, the Fund would remain invested in the side pockets and subject to subsequent market fluctuation in the value of the side pockets. In addition, Portfolio Funds may also establish side pockets or other liquidity management allocations at the time a redemption request is made that are intended to reflect that portion of the Portfolio Fund’s investments that are deemed illiquid at that time. To the extent such redemption side pockets are created, the Fund would similarly be subject to an extended liquidation period, market risk and valuation risk.

Shares are not and will not be listed for trading on any national securities exchange, are subject to substantial restrictions on transfer and have limited liquidity. Although the Advisor anticipates recommending to the Board that the Fund offer to repurchase Shares on a quarterly basis, the Board retains the discretion to approve such requests and, therefore, there is no requirement that the Fund offer to repurchase Shares. The Fund is not required to conduct tender offers and may be less likely to conduct tenders during periods of exceptional market conditions or when Portfolio Funds suspend redemptions. Accordingly, there can be no assurance that any such tender offer will be conducted on a quarterly basis or at all, or that a shareholder who requests the repurchase of all or a portion of its Shares will have such Shares repurchased.

The Portfolio Funds may use investment strategies and techniques that involve greater risks than the strategies typically used by registered investment companies. Portfolio Funds invest in equity and debt securities, and frequently also invest in and trade in other types of securities or instruments including equity-related instruments, debt-related instruments, currencies, financial futures, swap agreements, commodities or real estate securities and funds. In addition, the Portfolio Funds may sell securities short and use a wide range of other investment techniques, including leverage, securities lending and derivative instruments used for both hedging and non-hedging purposes. The use of such instruments, leverage and techniques may be an integral part of a Portfolio Fund’s investment strategy, and may increase the risk to which the Fund’s portfolio is subject.

There is no assurance that the Fund will achieve its investment objective. The Fund is subject to numerous risks, including investment risks. The Fund is not a complete investment program and you may lose money investing in the Fund. An investment in the Fund may not be appropriate for all investors.

The amounts and sources of distributions reported in any notices are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund's investment experience during the remainder of its fiscal year and may be subject to change based on tax regulations. The Fund will send a Form 1099-DIV for the calendar year that will tell how to report these distributions for federal income tax purposes.

Yields are based on income earned for the period cited and on the Fund's NAV at the end of the period.

Some investors may be subject to the alternative minimum tax (AMT).

Some BlackRock funds make distributions of ordinary income and capital gains at calendar year end. Those distributions temporarily cause extraordinarily high yields. There is no assurance that a fund will repeat that yield in the future. Subsequent distributions that do not include ordinary income or capital gains in the form of dividends will likely be lower.

The Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).

Although BlackRock shall obtain data from sources that BlackRock considers reliable, all data contained herein is provided “as is” and BlackRock makes no representation or warranty of any kind, either express or implied, with respect to such data, the timeliness thereof, the results to be obtained by the use thereof or any other matter. BlackRock expressly disclaims any and all implied warranties, including without limitation, warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose.

BlackRock provides compensation in connection with obtaining or using third-party ratings and rankings.

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As an expert in sustainable investing and financial analysis, I bring a wealth of knowledge and hands-on experience in evaluating Environmental, Social, and Governance (ESG) factors within investment strategies. I have closely examined various methodologies, including those employed by leading index providers such as MSCI, to gauge sustainability characteristics, carbon footprint metrics, business involvement screening, ESG controversies, and implied temperature rise.

Let's delve into the key concepts mentioned in the article and provide a comprehensive overview:

  1. ESG Fund Ratings:

    • ESG Fund Ratings refer to the evaluation of investment funds based on their Environmental, Social, and Governance criteria.
    • These ratings aim to quantify a fund's sustainability and ethical performance.
  2. Index Carbon Footprint Metrics:

    • Index Carbon Footprint Metrics measure the carbon emissions associated with the companies included in an investment index.
    • This metric is crucial for assessing the environmental impact of a portfolio and aligning investments with climate-conscious goals.
  3. Business Involvement Screening Research:

    • Business Involvement Screening Research involves analyzing the extent to which companies in a portfolio are involved in certain activities or industries.
    • This screening helps investors avoid businesses with controversial practices or those inconsistent with ESG principles.
  4. ESG Screened Index Methodology:

    • ESG Screened Index Methodology outlines the process of constructing an investment index by incorporating ESG criteria.
    • The methodology involves selecting and weighting securities based on their ESG performance, promoting sustainable investing.
  5. ESG Controversies:

    • ESG Controversies represent instances where companies face issues related to environmental, social, or governance matters.
    • Investors consider these controversies when assessing the overall ESG profile of a fund or portfolio.
  6. MSCI Implied Temperature Rise:

    • MSCI Implied Temperature Rise is a metric that estimates the potential temperature increase associated with a portfolio's greenhouse gas emissions.
    • This metric helps investors gauge the climate impact of their investments and align them with global warming targets.

The article emphasizes the importance of due diligence and understanding the methodology behind sustainability metrics. Investors are encouraged to refer to fund prospectuses, index methodology documents, and additional fund materials for a comprehensive understanding of the ESG screening applied and the associated risks.

Moreover, the disclaimer highlights the role of MSCI ESG Research LLC in providing information and underscores the need for careful consideration of investment objectives, risks, and charges before making investment decisions. It also mentions the potential impact of various risks associated with illiquid investments, valuation procedures, and conflicts of interest.

In conclusion, sustainable investing is a complex landscape, and investors should leverage comprehensive methodologies, such as those outlined by MSCI, to make informed decisions aligned with their values and financial goals.

BlackRock Alpha Strategies Fund | XGPIX | Institutional (2024)
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