Key Morningstar Metrics for BlackRock Global Unconstrained Equity Fund (UK)
- : GoldMorningstar Medalist Rating
- : HighProcess Pillar
- : HighPeople Pillar
- : Above AverageParent Pillar
BlackRock Global Unconstrained Equity benefits from two skilled managers who follow a well-structured process that seeks to benefit from the long-term compounding of free cash flows. They make full use of an established internal network of investors at BlackRock and the ample other available in-house resources. The recent increase in turnover represents adaptability in the face of what the managers perceive to be changes to long-term structural demand drivers. Our conviction in the process has increased. We represent a best-in-class view with the maintenance of a High People Pillar rating and an upgrade to High from Above Average for the Process Pillar rating.
Managers Alister Hibbert and Michael Constantis have distinguished themselves as strong fundamental stock-pickers. They are deep thinkers and have created a compact team structure with three generalist analysts. Importantly, they fully leverage the resources BlackRock affords them, both on this mandate and on others they run.
The duo also manages the BlackRock Strategic Equity hedge fund, which invests across a number of sleeves and for which this fund is essentially the “long-duration growth” carve-out. The underlying process employed here has been honed over Hibbert and Constantis’ careers. There are clear influences from Hibbert’s experience with Nick Train at GT Investment in the 1990s and under stock-picker Nigel Bolton, who retired from BlackRock in July 2023. The philosophy transcends the existence of this vehicle.
We like the quality-growth philosophy, which seeks businesses capable of growing faster than their rivals and widening their competitive advantages over a longer horizon than most investors consider. Unproven and unprofitable companies are overlooked in favor of businesses able to compound high returns on capital that will not mean-revert. The universe of stocks is highly focused, permitting deep research.
This leads to a highly concentrated best-ideas portfolio that is designed to be a “powerful expression” of the managers’ views, with little regard for relative weights. Despite recent underperformance, from inception in January 2020 to the end of May 2026, performance remains impressive, outperforming the Morningstar Global Growth Index Category benchmark and the global large-cap growth equity peer group.
Returns over the long term should derive from the fundamental performance of portfolio constituents, rather than multiple expansion. Investors should note that short-term volatility can be a byproduct of the process pursued here. We saw this during the tariff uncertainty in the first quarter of 2025, from which the fund bounced back.
With these changes comes increased thematic concentration. It may be expected to be more volatile compared with some quality growth peers.
BlackRock Global Unconstrained Equity Fund (UK): Performance Highlights
The managers took over BlackRock Global Unconstrained Equity in mid-December 2020, and since then through June 30, 2026, they have outperformed the Global Large-Cap Growth Target Market Exposure category index and the EEA global large-cap growth equity category average. They have also outperformed a basket of quality-growth peers we consider to have a similar style.
Alister Hibbert’s track record on other strategies is also impressive.
Hibbert beat the MSCI Europe ex UK Index benchmark by roughly 7% annualized over his tenure managing BlackRock European Dynamic from April 2008 through December 2020. Together, Hibbert and Michael Constantis have managed the BlackRock Strategic Equity hedge fund since November 2011, generating good outcomes according to data provided by BlackRock.
Looking at the three most recent calendar years, 2022 was poor in absolute terms; the fund lost 16.3%. In 2023, the fund was up some 26.2% versus 16.0% for the category and 22.3% for the Morningstar Global Growth Index. This was a good result for a year that saw significant stock market concentration, with the index driven by Magnificent Seven-type stocks (Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla). However, 2024 proved more challenging, and the approach led to underperformance. This was as much about what the fund held, Novo Nordisk and Spirax in particular, as it was about what it did not hold: Nvidia, Eli Lilly, Meta Platforms, and Tesla. Stock selection in technology looked poor for that year. This prompted deep reflection and was a proximate cause for deep doves into new structural growth drivers in their universe. 2025 was a better year in absolute terms, though the fund underperformed the category index, again in part because of the concentration of returns. Year-to-date through May 2026, performance has been pleasing, and the increased portfolio turnover has been well rewarded: Trading within the portfolio has been additive compared with a do-nothing equivalent.
Investors should note that increased thematic concentration comes with some risks. The fund may now prove more volatile than some quality-growth peers. As ever, a long holding period is recommended here to fully benefit from the long-duration equities the fund invests in.
