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

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Distributions

Ex-Date Total Distribution
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  2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Total Return (%) 1.87 2.88 -1.76 3.45 4.66 -0.36 0.24 4.04
Comparator Benchmark 1 (%) -0.31 -0.35 -0.35 -0.38 -0.44 -0.47 -0.01 3.31

Performance is shown after deduction of ongoing charges. Any entry and exit charges are excluded from the calculation.

  1Y 3Y 5Y 10y Incept.
7.83 2.14 2.52 - 2.00
Comparator Benchmark 1 (%) 3.95 1.67 0.82 - -
  YTD 1m 3M 6M 1Y 3Y 5Y 10y Incept.
2.43 0.44 0.99 2.43 7.83 6.55 13.23 - 19.45
Comparator Benchmark 1 (%) 1.98 0.31 0.98 1.98 3.95 5.09 4.18 - -
  From
30-Jun-2019
To
30-Jun-2020
From
30-Jun-2020
To
30-Jun-2021
From
30-Jun-2021
To
30-Jun-2022
From
30-Jun-2022
To
30-Jun-2023
From
30-Jun-2023
To
30-Jun-2024
Total Return (%)

as of Jun 30, 2024

1.93 4.25 -3.07 1.94 7.83
Comparator Benchmark 1 (%)

as of Jun 30, 2024

-0.42 -0.45 -0.53 1.63 3.95
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.

The figures shown relate to past performance. Past performance is not a reliable indicator of future performance. Markets could develop very differently in the future. It can help you to assess how the fund has been managed in the past

Share Class and Benchmark performance displayed in EUR, hedged share class benchmark performance is displayed in EUR.

Performance is shown on a Net Asset Value (NAV) basis, with gross income reinvested where applicable. The return of your investment may increase or decrease as a result of currency fluctuations if your investment is made in a currency other than that used in the past performance calculation. Source: Blackrock

Key Facts

Key Facts

Net Assets of Fund
as of Jul 19, 2024
EUR 1,969,473,637
Fund Inception Date
Sep 30, 2009
Base Currency
EUR
Comparator Benchmark 1
Overnight ESTR
Initial Charge
0.00%
ISIN
LU1260044430
Performance Fee
0.00%
Minimum Subsequent Investment
EUR 10000
Domicile
Luxembourg
Management Company
BlackRock (Luxembourg) S.A.
Dealing Settlement
Trade Date + 3 days
Bloomberg Ticker
BRFX4EU
Share Class Inception Date
Jul 15, 2015
Share Class Currency
EUR
Asset Class
Fixed Income
SFDR Classification
Article 8
Ongoing Charge
0.08%
Annual Management Fee
0.00%
Minimum Initial Investment
EUR 10000000
Use of Income
Distributing
Regulatory Structure
UCITS
Morningstar Category
Global Flexible Bond - EUR Hedged
Dealing Frequency
Daily, forward pricing basis
SEDOL
BYMXXL6

Portfolio Characteristics

Portfolio Characteristics

Number of Holdings
as of Jun 28, 2024
1114
Standard Deviation (3y)
as of Jun 30, 2024
4.19%
Yield to Maturity
as of Jun 28, 2024
5.20%
Yield to Worst
as of Jun 28, 2024
5.14%
Weighted Avg Maturity
as of Jun 28, 2024
6.80 yrs
12m Trailing Yield
as of Jun 30, 2024
3.38%
3y Beta
as of Jun 30, 2024
1.824
Modified Duration
as of Jun 28, 2024
2.06 yrs
Effective Duration
as of Jun 28, 2024
1.81 yrs
WAL to Worst
as of Jun 28, 2024
6.80 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 Jun 21, 2024
A
MSCI ESG Quality Score (0-10)
as of Jun 21, 2024
6.91
Fund Lipper Global Classification
as of Jun 21, 2024
Absolute Return Bond EUR
MSCI Weighted Average Carbon Intensity (Tons CO2E/$M SALES)
as of Jun 21, 2024
97.14
MSCI ESG % Coverage
as of Jun 21, 2024
80.14
MSCI ESG Quality Score - Peer Percentile
as of Jun 21, 2024
54.17
Funds in Peer Group
as of Jun 21, 2024
72
MSCI Weighted Average Carbon Intensity % Coverage
as of Jun 21, 2024
54.23
All data is from MSCI ESG Fund Ratings as of Jun 21, 2024, based on holdings as of Feb 29, 2024. 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% (or 50% for bond funds and money market funds) 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.

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 Jun 28, 2024
0.00%
MSCI - Nuclear Weapons
as of Jun 28, 2024
0.00%
MSCI - Civilian Firearms
as of Jun 28, 2024
0.00%
MSCI - Tobacco
as of Jun 28, 2024
0.00%
MSCI - UN Global Compact Violators
as of Jun 28, 2024
0.00%
MSCI - Thermal Coal
as of Jun 28, 2024
0.00%
MSCI - Oil Sands
as of Jun 28, 2024
0.00%

Business Involvement Coverage
as of Jun 28, 2024
56.66%
Percentage of Fund not covered
as of Jun 28, 2024
44.36%
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 0.59% and for Oil Sands 0.45%.

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 financially material environmental, social and governance (ESG) data or information into the investment decision process with the objective of enhancing risk-adjusted returns of our clients’ 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 or strategy, but rather describes how ESG data or information is considered as part of the overall investment process.

The Fund manager includes ESG considerations in combination with other information in the research phase of the investment process. This may include relevant third-party insights, as well as internal engagement commentary and input from BlackRock Investment Stewardship on governance issues. The Fund manager conducts regular portfolio reviews with the Risk and Quantitative Analysis group and with the Chief Investment Officers. These reviews include discussion, where appropriate, 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 X4, as of Jun 30, 2024 rated against 1107 Global Flexible Bond - EUR Hedged Funds.

Morningstar Medalist Rating

Morningstar Medalist 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

1
2
3
4
5
6
7
Low Risk High Risk
Low Yield High Yield

Holdings

Holdings

as of Jun 28, 2024
Name Weight (%)
ITALY (REPUBLIC OF) 5.63
GREECE REPUBLIC OF (GOVERNMENT) 2.73
ROMANIA (REPUBLIC OF) 2.43
UBS GROUP AG 2.37
CYPRUS (REPUBLIC OF) 2.33
Name Weight (%)
MONTENEGRO (REPUBLIC OF) 2.14
IRELAND (GOVERNMENT) 1.87
HUNGARY (GOVERNMENT) 1.84
BNP PARIBAS SA 1.30
EUROPEAN UNION 1.22
Holdings subject to change

Exposure Breakdowns

Exposure Breakdowns

as of Jun 28, 2024

% of Market Value

Type Fund Benchmark Net
as of Jun 28, 2024

% of Market Value

Type Fund Benchmark Net
as of Jun 28, 2024

% of Market Value

Type Fund Benchmark Net
as of Jun 28, 2024

% 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 NAV NAV Amount Change NAV % Change NAV As Of 52wk High 52wk Low ISIN
X4 EUR 106.00 0.03 0.03 Jul 19, 2024 107.93 101.31 LU1260044430
A2 Hgd CHF 104.09 0.01 0.01 Jul 19, 2024 104.10 99.33 LU0589446532
A2 EUR 128.91 0.03 0.02 Jul 19, 2024 128.91 120.46 LU0438336264
E2 EUR 119.90 0.02 0.02 Jul 19, 2024 119.90 112.55 LU0438336694
Class S2 Hedged USD 113.20 0.04 0.04 Jul 19, 2024 113.20 103.67 LU2465781842
A4 Hgd CHF 102.16 0.01 0.01 Jul 19, 2024 102.99 99.08 LU1046547201
A2 Hgd GBP 118.24 0.04 0.03 Jul 19, 2024 118.24 109.21 LU1200840038
Class S4 EUR 102.40 0.03 0.03 Jul 19, 2024 103.73 97.79 LU2465781925
X2 EUR 151.07 0.04 0.03 Jul 19, 2024 151.07 139.65 LU0544632515
I5 EUR 127.30 0.03 0.02 Jul 19, 2024 127.30 121.21 LU1129992720
A4 EUR 110.60 0.02 0.02 Jul 19, 2024 110.77 104.88 LU1040967272
I2 EUR 138.56 0.03 0.02 Jul 19, 2024 138.56 128.80 LU0438336777
D5 Hgd GBP 117.37 0.03 0.03 Jul 19, 2024 117.37 110.68 LU1117534666
I2 Hgd USD 125.76 0.04 0.03 Jul 19, 2024 125.76 115.16 LU1728038651
D2 EUR 136.58 0.03 0.02 Jul 19, 2024 136.58 127.16 LU0438336421
Class S2 EUR 107.69 0.03 0.03 Jul 19, 2024 107.69 100.13 LU2465781768
D2 Hgd GBP 125.70 0.03 0.02 Jul 19, 2024 125.70 115.67 LU1117534401
A2 Hgd JPY 10,141.95 1.05 0.01 Jul 19, 2024 10,143.83 9,799.44 LU1948809105
A4 Hgd USD 130.38 0.03 0.02 Jul 19, 2024 130.38 121.24 LU1046548191
D2 Hgd USD 136.30 0.04 0.03 Jul 19, 2024 136.30 125.01 LU1090194454
D4 EUR 107.98 0.02 0.02 Jul 19, 2024 109.27 103.14 LU1090193134
Class S4 Hedged USD 105.16 0.03 0.03 Jul 19, 2024 106.21 98.95 LU2465782063
D2 Hgd CHF 107.55 0.01 0.01 Jul 19, 2024 107.55 102.30 LU1090193647
Class AI2 EUR 107.28 0.02 0.02 Jul 19, 2024 107.28 100.24 LU2008562287
A2 Hgd USD 132.18 0.03 0.02 Jul 19, 2024 132.18 121.67 LU1046547540
D3 Hgd USD 125.83 0.03 0.02 Jul 19, 2024 125.83 118.27 LU1193909402

Portfolio Managers

Portfolio Managers

Johan Sjogren
Johan Sjogren
Georgie Merson
Georgie Merson

Literature

Literature