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How do corporate actions affect Portfolios?
How do corporate actions affect Portfolios?
Written by Chanel
Updated over a week ago

As Portfolios are composed of shares, fixed income, bonds and cash, these shares can be subject to corporate actions.

We’re committed to the long term growth of your fund, the Portfolios available do not focus on corporate actions as a strategy. As your Portfolio is independently managed by Blackrock, they aim to mitigate any volatility in the wake of corporate action.

The most common of these are dividends, which you’ll see paid out at Blackrock’s discretion. Others like stock splits are typically cosmetic in their effect, as the effect on your Portfolio as a whole won’t change significantly.

Finally, Mergers and Acquisitions do affect Portfolio holdings, and some funds are structured to take advantage of these circumstances, however, all Portfolios offered aim to minimise volatility.

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