Fixed Income

BSF European Select 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. The fund invests a large portion of assets which are denominated in other currencies; hence changes in the relevant exchange rate will affect the value of the investment. The fund invests in fixed interest securities issued by companies which, compared to bonds issued or guaranteed by governments, are exposed to greater risk of default in the repayment of the capital provided to the company or interest payments due to the fund. The fund invests in fixed interest securities such as corporate or government bonds which pay a fixed or variable rate of interest (also known as the ‘coupon’) and behave similarly to a loan. These securities are therefore exposed to changes in interest rates which will affect the value of any securities held. The fund investments may be subject to liquidity constraints, which means that shares may trade less frequently and in small volumes, for instance smaller companies. As a result, changes in the value of investments may be more unpredictable. In certain cases, it may not be possible to sell the security at the last market price quoted or at a value considered to be fairest. The Fund utilises derivatives as part of its investment strategy. Compared to a fund which only invests in traditional instruments such as stocks and bonds, derivatives are potentially subject to a higher level of risk and volatility. The strategies utilized by the Fund involve the use of derivatives to facilitate certain investment management techniques including the establishment of both ‘long’ and ‘synthetic short’ positions and creation of market leverage for the purposes of increasing the economic exposure of a Fund beyond the value of its net assets. The use of derivatives in this manner may have the effect of increasing the overall risk profile of the Fund. The Fund may be exposed to finance sector companies, as a service provider or as counterparty for financial contracts. Liquidity in the financial markets has been severely restricted, causing a number of firms to withdrawn from the market, or in some extreme cases, becoming insolvent. This may have an adverse affect on the activities of the fund.

The value of your investment and the income from it will vary and your initial investment amount is not guaranteed. Overseas investments will be affected by movements in currency exchange rates.

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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Distributions

Ex-Date Total Distribution
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  2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Total Return (%) 2.27 4.64 -4.17 10.81 3.05 3.10 -13.24 8.79
Constraint Benchmark 1 (%) 5.08 3.79 -2.60 10.13 3.24 2.65 -15.97 8.65

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

  1Y 3Y 5Y 10y Incept.
5.27 -0.69 1.76 - 1.65
Constraint Benchmark 1 (%) 4.89 -1.94 0.83 - 1.42
  YTD 1m 3M 6M 1Y 3Y 5Y 10y Incept.
-0.09 -0.09 7.71 4.95 5.27 -2.07 9.13 - 14.85
Constraint Benchmark 1 (%) -0.11 -0.11 6.98 4.06 4.89 -5.70 4.23 - 12.67
  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
From
31-Dec-2022
To
31-Dec-2023
Total Return (%)

as of Dec 31, 2023

10.81 3.05 3.10 -13.24 8.79
Constraint Benchmark 1 (%)

as of Dec 31, 2023

10.13 3.24 2.65 -15.97 8.65
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 Mar 1, 2024 EUR 242,699,243
Share Class Inception Date Aug 19, 2015
Fund Inception Date Aug 19, 2015
Share Class Currency EUR
Base Currency EUR
Asset Class Fixed Income
Constraint Benchmark 1 75% Barclays Pan Euro Agg Bond (Euro Hedged)/25% MSCI Europe (Euro Hedged) (EUR)
SFDR Classification Article 8
Initial Charge 0.00%
Ongoing Charge 0.79%
ISIN LU1271725878
Annual Management Fee 0.65%
Performance Fee 0.00%
Minimum Initial Investment EUR 10000000
Minimum Subsequent Investment -
Use of Income Distributing
Domicile Luxembourg
Regulatory Structure UCITS
Management Company BlackRock (Luxembourg) S.A.
Morningstar Category EUR Cautious Allocation
Dealing Settlement Trade Date + 3 days
Dealing Frequency Daily, forward pricing basis
Bloomberg Ticker BSESI4E
SEDOL BYRFX28

Portfolio Characteristics

Portfolio Characteristics

Number of Holdings as of Jan 31, 2024 541
12m Trailing Yield as of Feb 29, 2024 1.61%
Standard Deviation (3y) as of Jan 31, 2024 7.79%
3y Beta as of Jan 31, 2024 0.957
Yield to Maturity as of Jan 31, 2024 2.50%
Modified Duration as of Jan 31, 2024 5.50 yrs
Yield to Worst as of Jan 31, 2024 2.46%
Effective Duration as of Jan 31, 2024 5.52 yrs
Weighted Avg Maturity as of Jan 31, 2024 6.32 yrs
WAL to Worst as of Jan 31, 2024 6.32 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 Feb 21, 2024 AA
MSCI ESG % Coverage as of Feb 21, 2024 93.60
MSCI ESG Quality Score (0-10) as of Feb 21, 2024 7.25
MSCI ESG Quality Score - Peer Percentile as of Feb 21, 2024 80.83
Fund Lipper Global Classification as of Feb 21, 2024 Mixed Asset EUR Flex - Global
Funds in Peer Group as of Feb 21, 2024 1,502
MSCI Weighted Average Carbon Intensity (Tons CO2E/$M SALES) as of Feb 21, 2024 73.58
MSCI Weighted Average Carbon Intensity % Coverage as of Feb 21, 2024 66.48
All data is from MSCI ESG Fund Ratings as of Feb 21, 2024, based on holdings as of Sep 30, 2023. 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 Jan 31, 2024 0.00%
MSCI - UN Global Compact Violators as of Jan 31, 2024 0.00%
MSCI - Nuclear Weapons as of Jan 31, 2024 0.00%
MSCI - Thermal Coal as of Jan 31, 2024 0.00%
MSCI - Civilian Firearms as of Jan 31, 2024 0.00%
MSCI - Oil Sands as of Jan 31, 2024 0.00%
MSCI - Tobacco as of Jan 31, 2024 0.00%

Business Involvement Coverage as of Jan 31, 2024 64.20%
Percentage of Fund not covered as of Jan 31, 2024 35.91%
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 0.00% and for Oil Sands 0.90%.

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

3 stars
Overall Morningstar Rating for BSF European Select Strategies Fund, Class I4, as of Feb 29, 2024 rated against 857 EUR Cautious Allocation 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 Jan 31, 2024)

Risk Indicator

Risk Indicator

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Low Risk High Risk
Low Yield High Yield

Holdings

Holdings

as of Jan 31, 2024
Name Weight (%)
NOVO NORDISK CLASS B 1.24
VINCI SA 1.00
NESTLE SA 0.94
ASML HOLDING NV 0.92
TRYG 0.81
Name Weight (%)
SANOFI SA 0.79
NOVARTIS AG 0.77
LVMH 0.76
NORDEA BANK 0.74
CRH PUBLIC LIMITED PLC 0.73
Holdings subject to change

Exposure Breakdowns

Exposure Breakdowns

as of Jan 31, 2024

% of Market Value

Type Fund Benchmark Net
as of Jan 31, 2024

% of Market Value

Type Fund Benchmark Net
Sorry, maturities are not available at this time.
as of Jan 31, 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
Class I4 EUR 103.11 -0.12 -0.12 Mar 1, 2024 104.17 95.27 LU1271725878
I2 EUR 110.00 -0.13 -0.12 Mar 1, 2024 111.12 101.63 LU1461867779
A4 EUR 104.18 -0.12 -0.12 Mar 1, 2024 105.39 96.52 LU1308276598
D5 Hgd USD 118.76 -0.16 -0.13 Mar 1, 2024 119.93 109.66 LU1308276754
A2 Hgd CZK 1,158.85 -1.36 -0.12 Mar 1, 2024 1,167.71 1,064.71 LU1433515993
E5 EUR 102.03 -0.12 -0.12 Mar 1, 2024 103.31 94.70 LU1271725522
E2 EUR 102.23 -0.12 -0.12 Mar 1, 2024 103.51 94.88 LU1271725449
D2 EUR 112.28 -0.13 -0.12 Mar 1, 2024 113.47 103.81 LU1271725365
A2 EUR 106.68 -0.13 -0.12 Mar 1, 2024 107.92 98.84 LU1271725100
Class AI2 EUR 98.05 -0.12 -0.12 Mar 1, 2024 99.19 90.85 LU2008561982
X2 EUR 120.12 -0.14 -0.12 Mar 1, 2024 121.22 110.73 LU1271725951

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.

Literature

Literature