Fixed Income

BlackRock Sustainable Fixed Income Strategies Fund

Overview

Important Information: Capital at Risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested. Changes to interest rates, credit risk and/or issuer defaults will have a significant impact on the performance of fixed income securities. Non-investment grade fixed income securities can be more sensitive to changes in these risks than higher rated fixed income securities. Potential or actual credit rating downgrades may increase the level of risk. Asset backed securities and mortgage backed securities are subject to the same risks described for fixed income securities. These instruments may be subject to 'Liquidity Risk', have high levels of borrowing and may not fully reflect the value of underlying assets. Derivatives may be highly sensitive to changes in the value of the asset on which they are based and can increase the size of losses and gains, resulting in greater fluctuations in the value of the Fund. The impact to the Fund can be greater where derivatives are used in an extensive or complex way. The Fund seeks to exclude companies engaging in certain activities inconsistent with ESG criteria. Investors should therefore make a personal ethical assessment of the Fund’s ESG screening prior to investing in the Fund. Such ESG screening may adversely affect the value of the Fund’s investments compared to a fund without such screening.

All currency hedged share classes of this fund use derivatives to hedge currency risk. The use of derivatives for a share class could pose a potential risk of contagion (also known as spill-over) to other share classes in the fund. The fund’s management company will ensure appropriate procedures are in place to minimise contagion risk to other share class. Using the drop down box directly below the name of the fund, you can view a list of all share classes in the fund – currency hedged share classes are indicated by the word “Hedged” in the name of the share class. In addition, a full list of all currency hedged share classes is available on request from the fund’s management company

To the extent the Fund undertakes securities lending to reduce costs, the Fund will receive 62.5% of the associated revenue generated and the remaining 37.5% will be received by BlackRock as the securities lending agent. As securities lending revenue sharing does not increase the costs of running the Fund, this has been excluded from the ongoing charges.

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Performance

Performance

Growth of Hypothetical 10,000

Performance chart data not available for display.
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  2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Total Return (%) 5.07 4.94 3.32 1.87 2.88 -1.76 3.46 4.64 -0.36 0.24
Comparator Benchmark 1 (%) 0.09 0.10 -0.11 -0.31 -0.35 -0.35 -0.38 -0.44 -0.47 -0.01
  1Y 3Y 5Y 10y Incept.
0.24 1.49 1.22 2.41 2.62
Comparator Benchmark 1 (%)

as of Dec 31, 2022

-0.01 -0.30 -0.33 -0.22 -0.11
  YTD 1m 3M 6M 1Y 3Y 5Y 10y Incept.
0.24 1.33 5.37 3.16 0.24 4.53 6.24 26.84 35.86
Comparator Benchmark 1 (%)

as of Dec 31, 2022

-0.01 0.14 0.31 0.29 -0.01 -0.91 -1.63 -2.20 -1.24
  From
31-Dec-2017
To
31-Dec-2018
From
31-Dec-2018
To
31-Dec-2019
From
31-Dec-2019
To
31-Dec-2020
From
31-Dec-2020
To
31-Dec-2021
From
31-Dec-2021
To
31-Dec-2022
Total Return (%)

as of Dec 31, 2022

-1.76 3.46 4.64 -0.36 0.24
Comparator Benchmark 1 (%)

as of Dec 31, 2022

-0.35 -0.38 -0.44 -0.47 -0.01
The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted.

Key Facts

Key Facts

Net Assets of Fund as of Jan 27, 2023 EUR 3,327,173,793
Share Class Inception Date Feb 18, 2011
Fund Inception Date Sep 30, 2009
Share Class Currency EUR
Base Currency EUR
Asset Class Fixed Income
Comparator Benchmark 1 Overnight ESTR
SFDR Classification Article 8
Initial Charge 0.00%
Ongoing Charge 0.08%
Annual Management Fee 0.00%
Performance Fee 0.00%
Minimum Initial Investment EUR 10000000
Minimum Subsequent Investment EUR 10000
Use of Income Accumulating
Domicile Luxembourg
Regulatory Structure UCITS
Management Company BlackRock (Luxembourg) S.A.
Morningstar Category Global Flexible Bond - EUR Hedged
Dealing Settlement Trade Date + 3 days
Dealing Frequency Daily, forward pricing basis
Bloomberg Ticker BRFXIX2
ISIN LU0544632515
SEDOL B4NTVC0

Portfolio Characteristics

Portfolio Characteristics

Number of Holdings as of Dec 30, 2022 868
Standard Deviation (3y) as of Dec 31, 2022 4.82%
3y Beta as of Dec 31, 2022 7.072
Yield to Maturity as of Dec 30, 2022 4.12%
Modified Duration as of Dec 30, 2022 1.93 yrs
Yield to Worst as of Dec 30, 2022 4.17%
Effective Duration as of Dec 30, 2022 1.68 yrs
Weighted Avg Maturity as of Dec 30, 2022 5.26 yrs
WAL to Worst as of Dec 30, 2022 5.26 yrs

Sustainability Characteristics

Sustainability Characteristics

Sustainability Characteristics provide investors with specific non-traditional metrics. Alongside other metrics and information, these enable investors to evaluate funds on certain environmental, social and governance characteristics. Sustainability Characteristics do not provide an indication of current or future performance nor do they represent the potential risk and reward profile of a fund. They are provided for transparency and for information purposes only. Sustainability Characteristics should not be considered solely or in isolation, but instead are one type of information that investors may wish to consider when assessing a fund.


The metrics are not indicative of how or whether ESG factors will be integrated into a fund. Unless otherwise stated in fund documentation and included within a fund’s investment objective, the metrics do not change a fund’s investment objective or constrain the fund’s investable universe, and there is no indication that an ESG or Impact focused investment strategy or exclusionary screens will be adopted by a fund. For more information regarding a fund's investment strategy, please see the fund's prospectus.


Review the MSCI methodologies behind Sustainability Characteristics using the links below.

MSCI ESG Fund Rating (AAA-CCC) as of Nov 21, 2022 AA
MSCI ESG % Coverage as of Nov 21, 2022 77.89
MSCI ESG Quality Score (0-10) as of Nov 21, 2022 8.23
MSCI ESG Quality Score - Peer Percentile as of Nov 21, 2022 82.00
Fund Lipper Global Classification as of Nov 21, 2022 Absolute Return Bond EUR
Funds in Peer Group as of Nov 21, 2022 50
MSCI Weighted Average Carbon Intensity (Tons CO2E/$M SALES) as of Nov 21, 2022 63.80
MSCI Weighted Average Carbon Intensity % Coverage as of Nov 21, 2022 53.35
All data is from MSCI ESG Fund Ratings as of Nov 21, 2022, based on holdings as of Apr 30, 2022. As such, the fund’s sustainable characteristics may differ from MSCI ESG Fund Ratings from time to time.

To be included in MSCI ESG Fund Ratings, 65% of the fund’s gross weight must come from securities with ESG coverage by MSCI ESG Research (certain cash positions and other asset types deemed not relevant for ESG analysis by MSCI are removed prior to calculating a fund’s gross weight; the absolute values of short positions are included but treated as uncovered), the fund’s holdings date must be less than one year old, and the fund must have at least ten securities. For newly launched funds, Sustainability Characteristics are typically available 6 months after launch.

Business Involvement

Business Involvement

Business Involvement metrics can help investors gain a more comprehensive view of specific activities in which a fund may be exposed through its investments.


Business Involvement metrics are not indicative of a fund’s investment objective, and, unless otherwise stated in fund documentation and included within a fund’s investment objective, do not change a fund’s investment objective or constrain the fund’s investable universe, and there is no indication that an ESG or Impact focused investment strategy or exclusionary screens will be adopted by a fund. For more information regarding a fund's investment strategy, please see the fund's prospectus.


Review the MSCI methodology behind the Business Involvement metrics, using links below.

MSCI - Controversial Weapons as of Dec 30, 2022 0.00%
MSCI - UN Global Compact Violators as of Dec 30, 2022 0.05%
MSCI - Nuclear Weapons as of Dec 30, 2022 0.01%
MSCI - Thermal Coal as of Dec 30, 2022 0.00%
MSCI - Civilian Firearms as of Dec 30, 2022 0.00%
MSCI - Oil Sands as of Dec 30, 2022 0.00%
MSCI - Tobacco as of Dec 30, 2022 0.02%

Business Involvement Coverage as of Dec 30, 2022 62.68%
Percentage of Fund not covered as of Dec 30, 2022 37.21%
BlackRock business involvement exposures as shown above for Thermal Coal and Oil Sands are calculated and reported for companies that generate more than 5% of revenue from thermal coal or oil sands as defined by MSCI ESG Research. For the exposure to companies that generate any revenue from thermal coal or oil sands (at a 0% revenue threshold), as defined by MSCI ESG Research, it is as follows: Thermal Coal 0.01% and for Oil Sands 0.23%.

Business Involvement metrics are calculated by BlackRock using data from MSCI ESG Research which provides a profile of each company’s specific business involvement. BlackRock leverages this data to provide a summed up view across holdings and translates it to a fund's market value exposure to the listed Business Involvement areas above.


Business Involvement metrics are designed only to identify companies where MSCI has conducted research and identified as having involvement in the covered activity. As a result, it is possible there is additional involvement in these covered activities where MSCI does not have coverage. This information should not be used to produce comprehensive lists of companies without involvement. Business Involvement metrics are only displayed if at least 1% of the fund’s gross weight includes securities covered by MSCI ESG Research.

ESG Integration

ESG Integration

ESG integration is the practice of incorporating material environmental, social and governance (ESG) information or insights alongside traditional measures into the investment decision process to improve long term financial outcomes of portfolios. Unless otherwise stated in Fund documentation or included within the Fund’s investment objective, inclusion of this statement does not imply that the Fund has an ESG-aligned investment objective, but rather describes how ESG information is considered as part of the overall investment process.


The Fund manager includes ESG considerations in combination with other information in the research and due diligence phase of the investment process. ESG information may be sourced internally, via collaboration with the BlackRock Investment Stewardship team in engaging issuers on material environmental, social or governance topics, or from third-party providers. The Fund manager’s ongoing monitoring of the portfolio involves regular portfolio risk reviews with the Risk and Quantitative Analysis group. These reviews include discussion of the portfolio’s exposure to material ESG risks, as well as exposure to sustainability-related business involvements, climate-related metrics, and other factors.

Ratings

Ratings

Morningstar Rating

5 stars
Overall Morningstar Rating for BlackRock Sustainable Fixed Income Strategies Fund, Class X2, as of Dec 31, 2022 rated against 1021 Global Flexible Bond - EUR Hedged Funds.

Morningstar Analyst Rating

Morningstar Analyst Rating - Silver
Morningstar has awarded the Fund a Silver medal. Fewer than 10% of US open-end funds hold medalist ratings. (Effective Jul 30, 2020)

Risk Indicator

Risk Indicator

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Low Risk High Risk
Low Yield High Yield

Holdings

Holdings

as of Dec 30, 2022
Name Weight (%)
CYPRUS (REPUBLIC OF) 2.85
KFW 2.27
EUROPEAN INVESTMENT BANK 1.59
HSBC HOLDINGS PLC 1.50
ISHARES CORE EURO CORP BOND UCITS ETF 1.44
Name Weight (%)
NEW ZEALAND (GOVERNMENT OF) 1.41
DEUTSCHE BANK AG 1.36
EUROPEAN UNION 1.34
BNP PARIBAS SA 1.22
ING GROEP NV 1.15
Holdings subject to change

Exposure Breakdowns

Exposure Breakdowns

as of Dec 30, 2022

% of Market Value

Type Fund Benchmark Net
as of Dec 30, 2022

% of Market Value

Type Fund Benchmark Net
as of Dec 30, 2022

% of Market Value

Type Fund Benchmark Net
as of Dec 30, 2022

% of Market Value

Type Fund Benchmark Net
Negative weightings may result from specific circumstances (including timing differences between trade and settle dates of securities purchased by the funds) and/or the use of certain financial instruments, including derivatives, which may be used to gain or reduce market exposure and/or risk management. Allocations are subject to change.

Pricing & Exchange

Pricing & Exchange

Investor Class Currency Distribution Frequency NAV NAV Amount Change NAV % Change NAV As Of 52wk High 52wk Low ISIN TIS
X2 EUR Accumulating 142.17 -0.08 -0.06 Jan 30, 2023 142.25 131.94 LU0544632515 -
Class S2 Hedged USD - 104.66 0.04 0.04 Jan 27, 2023 104.66 96.27 LU2465781842 -
D5 Hgd GBP Quarterly 113.61 0.04 0.04 Jan 27, 2023 113.61 105.51 LU1117534666 -
A2 Hgd JPY - 10,290.55 2.24 0.02 Jan 27, 2023 10,363.97 9,622.60 LU1948809105 -
A4 EUR Annual 107.56 0.04 0.04 Jan 27, 2023 107.56 100.11 LU1040967272 -
A2 Hgd CHF Accumulating 103.17 0.03 0.03 Jan 27, 2023 103.17 96.35 LU0589446532 -
D2 EUR Accumulating 130.10 0.03 0.02 Jan 27, 2023 130.10 120.95 LU0438336421 -
I2 Hgd USD Accumulating 116.11 -0.06 -0.05 Jan 30, 2023 116.17 106.81 LU1728038651 -
Class S2 EUR - 102.37 0.03 0.03 Jan 27, 2023 102.37 95.11 LU2465781768 -
A4 Hgd CHF Annual 102.90 0.02 0.02 Jan 27, 2023 102.90 96.11 LU1046547201 -
A2 EUR Accumulating 123.53 0.04 0.03 Jan 27, 2023 123.53 114.97 LU0438336264 -
A2 Hgd GBP Accumulating 111.10 0.03 0.03 Jan 27, 2023 111.10 102.92 LU1200840038 -
I2 EUR Accumulating 131.57 -0.08 -0.06 Jan 30, 2023 131.65 122.32 LU0438336777 -
D2 Hgd USD Accumulating 126.24 0.05 0.04 Jan 27, 2023 126.24 116.12 LU1090194454 -
A4 Hgd USD Annual 122.71 0.04 0.03 Jan 27, 2023 122.71 113.01 LU1046548191 -
X4 EUR Annual 105.75 0.03 0.03 Jan 27, 2023 105.75 98.08 LU1260044430 -
D2 Hgd CHF Accumulating 105.96 0.03 0.03 Jan 27, 2023 105.96 98.84 LU1090193647 -
D2 Hgd GBP Accumulating 117.41 0.04 0.03 Jan 27, 2023 117.41 108.63 LU1117534401 -
I5 EUR Quarterly 125.69 0.03 0.02 Jan 27, 2023 125.69 117.27 LU1129992720 -
D4 EUR Annual 107.22 -0.07 -0.07 Jan 30, 2023 107.29 99.74 LU1090193134 -
E2 EUR Accumulating 115.75 0.03 0.03 Jan 27, 2023 115.75 107.89 LU0438336694 -
D3 Hgd USD Monthly 120.82 0.04 0.03 Jan 27, 2023 120.82 111.57 LU1193909402 -
Class AI2 EUR - 102.81 0.03 0.03 Jan 27, 2023 102.81 95.69 LU2008562287 -
A2 Hgd USD Accumulating 123.14 0.04 0.03 Jan 27, 2023 123.14 113.41 LU1046547540 -

Portfolio Managers

Portfolio Managers

Michael Krautzberger
Managing Director, Head of EMEA Fundamental Fixed Income

Michael Krautzberger, CFA, EFFAS, Managing Director. Michael is Head of the Fundamental Pan European Fixed Income team.

Tom Mondelaers
Tom Mondelaers
Johan Sjogren
Johan Sjogren

Literature

Literature