Fixed Income

BlackRock Absolute Return Bond 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.

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

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Performance

Performance

Growth of Hypothetical 10,000

Performance chart data not available for display.
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  2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Total Return (%) 3.60 1.83 -0.38 0.67 1.04 2.15 -2.10 2.15 4.39 -1.84
Comparator Benchmark 1 (%) 0.83 0.52 0.54 0.57 0.50 0.35 0.72 0.81 0.29 0.08
  1Y 3Y 5Y 10y Incept.
-0.36 0.55 0.29 0.70 0.91
Comparator Benchmark 1 (%) 1.13 0.52 0.61 0.55 0.59
  YTD 1m 3M 6M 1Y 3Y 5Y 10y Incept.
-1.25 0.75 -0.92 -0.36 -0.36 1.66 1.47 7.17 10.61
Comparator Benchmark 1 (%) 1.12 0.23 0.57 0.90 1.13 1.57 3.10 5.69 6.78
  From
30-Sep-2017
To
30-Sep-2018
From
30-Sep-2018
To
30-Sep-2019
From
30-Sep-2019
To
30-Sep-2020
From
30-Sep-2020
To
30-Sep-2021
From
30-Sep-2021
To
30-Sep-2022
Total Return (%)

as of Sep 30, 2022

-1.01 0.37 2.95 2.06 -4.20
Comparator Benchmark 1 (%)

as of Sep 30, 2022

0.62 0.83 0.48 0.06 0.73
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 Dec 7, 2022 GBP 1,179,443,253
Share Class Inception Date Sep 30, 2011
Fund Inception Date Sep 30, 2011
Share Class Currency GBP
Base Currency GBP
Asset Class Fixed Income
Comparator Benchmark 1 3 Month SONIA Compounded in Arrears
SFDR Classification -
Investment Association Category -
Initial Charge 5.00%
Ongoing Charge 1.06%
Annual Management Fee 1.00%
Performance Fee 0.00%
Minimum Initial Investment GBP 500
Minimum Subsequent Investment GBP 100
Use of Income Accumulating
Domicile United Kingdom
Regulatory Structure UCITS
Management Company BlackRock Fund Managers Ltd
Morningstar Category Global Flexible Bond - GBP Hedged
Dealing Settlement Trade Date + 3 days
Dealing Frequency Daily, forward pricing basis
Bloomberg Ticker BRARBPA
ISIN GB00B5LVV365
SEDOL B5LVV36

Portfolio Characteristics

Portfolio Characteristics

Number of Holdings as of Nov 30, 2022 1122
Standard Deviation (3y) as of Nov 30, 2022 4.34%
3y Beta as of Nov 30, 2022 -0.662
Yield to Maturity as of Nov 30, 2022 4.05%
Modified Duration as of Nov 30, 2022 0.41 yrs
Yield to Worst as of Nov 30, 2022 4.24%
Effective Duration as of Nov 30, 2022 0.36 yrs
Weighted Avg Maturity as of Nov 30, 2022 3.52 yrs
WAL to Worst as of Nov 30, 2022 3.52 yrs

Sustainability Characteristics

Sustainability Characteristics

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. MSCI Ratings are currently unavailable for this fund.

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 Nov 30, 2022 0.01%
MSCI - UN Global Compact Violators as of Nov 30, 2022 2.09%
MSCI - Nuclear Weapons as of Nov 30, 2022 0.02%
MSCI - Thermal Coal as of Nov 30, 2022 0.04%
MSCI - Civilian Firearms as of Nov 30, 2022 0.00%
MSCI - Oil Sands as of Nov 30, 2022 0.00%
MSCI - Tobacco as of Nov 30, 2022 0.66%

Business Involvement Coverage as of Nov 30, 2022 52.70%
Percentage of Fund not covered as of Nov 30, 2022 47.68%
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 0.40% and for Oil Sands 0.57%.

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

3 stars
Overall Morningstar Rating for BlackRock Absolute Return Bond Fund, Class P, as of Nov 30, 2022 rated against 566 Global Flexible Bond - GBP Hedged Funds.

Risk Indicator

Risk Indicator

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2
3
4
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Low Risk High Risk
Low Yield High Yield

Holdings

Holdings

as of Nov 30, 2022
Name Weight (%)
ISHARES CORPORATE BOND 0-5YR UCIT 7.54
ISH CORE EURO CORP BND ETF EUR DIS 1.58
NATWEST GROUP PLC MTN RegS 3.622 08/14/2030 1.35
NEXTERA ENERGY OPERATING PARTNERS 144A 4.25 07/15/2024 0.84
PETROLEOS MEXICANOS MTN RegS 3.75 02/21/2024 0.82
Name Weight (%)
BLACKROCK SYSTEMATIC MULTI-S CLX 0.78
LLOYDS TSB BANK PLC MTN RegS 7.625 04/22/2025 0.73
VOLKSWAGEN INTERNATIONAL FINANCE N RegS 2.7 12/31/2049 0.63
SANTANDER UK GROUP HOLDINGS PLC MTN RegS 2.421 01/17/2029 0.60
ABN AMRO BANK NV RegS 4.4 03/27/2028 0.59
Holdings subject to change

Exposure Breakdowns

Exposure Breakdowns

as of Nov 30, 2022

% of Market Value

Type Fund Benchmark Net
as of Nov 30, 2022

% of Market Value

Type Fund Benchmark Net
as of Nov 30, 2022

% of Market Value

Type Fund Benchmark Net
as of Nov 30, 2022

% of Market Value

Type Fund Benchmark Net
as of Nov 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 Bid Price Offer Price ISIN TIS
Class P GBP Accumulating 1.11 1.11 GB00B5LVV365 -
D GBP Accumulating 1.17 1.17 GB00B618DS31 -
X GBP Accumulating 1.24 1.24 GB00B66YXP33 -

Portfolio Managers

Portfolio Managers

Simon Blundell
Simon Blundell
Joseph Di Censo
Managing Director

  

Rekesh Varsani
Rekesh Varsani

Literature

Literature