Fixed Income

BlackRock Sterling Strategic 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 financial investments involve an element of risk. Therefore, the value of your investment and the income from it will vary and your initial investment amount cannot be guaranteed. 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 may make distributions from capital as well as income or pursue certain investment strategies in order to generate income. Whilst this might allow more income to be distributed, it may also have the effect of reducing capital and the potential for long-term capital growth. Investors in this Fund should understand that capital growth is not a priority and values may fluctuate and the level of income may vary from time to time and is not guaranteed. The Fund utilizes 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 use of covered call options in the fund will usually provide some limited protection to investors when stockmarkets are falling, but may also result in a lower return in a rising market, when compared to the benchmark The fund invests in a limited number of market sectors. Compared to investments which spread investment risk through investing in a variety of sectors, share price movements may have a greater effect on the overall value of this fund. The fund may invest in smaller company shares which can be more unpredictable and less liquid than those of larger company shares. Compared to more established economies, the value of investments in developing Emerging Markets may be subject to greater volatility due to differences in generally accepted accounting principles or from economic or political instability. The fund can invest in mining shares which typically experience above average volatility when compared to other investments. Trends which occur within the general equity market may not be mirrored within mining securities. Optional - The Fund does not hold physical gold or other commodities.
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Performance

Performance

Growth of Hypothetical 10,000

Performance chart data not available for display.
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Reinvestments

This fund does not have any distributions data as of now.
  From
30-Sep-2016
To
30-Sep-2017
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
Total Return (%)

as of Sep 30, 2021

4.35 0.63 4.86 3.43 4.48
  1Y 3Y 5Y 10y Incept.
4.48 4.26 3.54 - 4.51
  YTD 1m 3M 1Y 3Y 5Y 10y Incept.
0.40 -0.55 -0.16 4.48 13.32 19.00 - 26.75
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

Size of Fund (Millions) as of Oct 15, 2021 GBP 82.330
Price Yield as of Oct 15, 2021 1.08
Number of Holdings as of Sep 30, 2021 70
Base Currency British Pound
Fund Inception Date May 17, 2016
Share Class Inception Date May 17, 2016
Asset Class Fixed Income
Investment Association Category £ Strategic Bond
Domicile United Kingdom
Regulatory Structure UCITS
Management Company BlackRock Fund Managers Ltd
Ongoing Charge 1.11%
ISIN GB00BZ6DDG44
Bloomberg Ticker BRSSBAA LN
Annual Management Fee 1.00%
Initial Charge 5.00%
Performance Fee 0.00%
SEDOL BZ6DDG4
Dealing Settlement Trade Date + 3 days
Dealing Frequency Daily, forward pricing basis
Minimum Initial Investment GBP 500
Minimum Subsequent Investment -
Use of Income Accumulating

Sustainability Characteristics

Sustainability Characteristics

Sustainability Characteristics can help investors integrate non-financial, sustainability considerations into their investment process. These metrics enable investors to evaluate funds based on their environmental, social, and governance (ESG) risks and opportunities. This analysis can provide insight into the effective management and long-term financial prospects of a fund.


The metrics below have been provided for transparency and informational purposes only. The existence of an ESG rating is not indicative of how or whether ESG factors will be integrated into a fund. The metrics are based on MSCI ESG Fund Ratings 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 Sustainability Characteristics, using links below.

MSCI ESG Fund Rating (AAA-CCC) as of Oct 7, 2021 A
MSCI ESG Quality Score (0-10) as of Oct 7, 2021 6.97
MSCI ESG Quality Score - Peer Percentile as of Oct 7, 2021 11.08
MSCI ESG % Coverage as of Oct 7, 2021 88.38
Fund Lipper Global Classification as of Oct 7, 2021 Bond GBP Corporates
MSCI Weighted Average Carbon Intensity (Tons CO2E/$M SALES) as of Oct 7, 2021 131.89
Funds in Peer Group as of Oct 7, 2021 379
All data is from MSCI ESG Fund Ratings as of Oct 7, 2021, based on holdings as of Feb 28, 2021. 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 covered 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 Sep 30, 2021 0.00%
MSCI - UN Global Compact Violators as of Sep 30, 2021 3.04%
MSCI - Nuclear Weapons as of Sep 30, 2021 0.00%
MSCI - Thermal Coal as of Sep 30, 2021 0.00%
MSCI - Civilian Firearms as of Sep 30, 2021 0.00%
MSCI - Oil Sands as of Sep 30, 2021 0.00%
MSCI - Tobacco as of Sep 30, 2021 8.82%

Business Involvement Coverage as of Sep 30, 2021 65.49%
Percentage of Fund not covered as of Sep 30, 2021 34.51%
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 2.25% and for Oil Sands 2.19%.

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

Risk Indicator

Risk Indicator

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3
4
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Low Risk High Risk
Low Yield High Yield

Holdings

Holdings

as of Sep 30, 2021
Name Weight (%)
UK CONV GILT 0.875 10/22/2029 6.07
BAT INTERNATIONAL FINANCE PLC MTN RegS 4 09/04/2026 4.20
UK CONV GILT 0.375 10/22/26 0.375 10/22/2026 3.60
TESCO PROPERTY RegS 3.38
UK CONV GILT 0.875 07/31/2033 3.38
Name Weight (%)
CREDIT SUISSE GROUP AG MTN RegS 0.625 01/18/2033 2.94
LLOYDS BANKING GROUP PLC 1.985 12/15/2031 2.48
WESTERN POWER DISTRIBUTION PLC RegS 3.5 10/16/2026 2.30
IMPERIAL BRANDS FINANCE PLC MTN RegS 5.5 09/28/2026 2.20
THAMES WATER UTILITIES FINANCE PLC MTN RegS 2.875 05/03/2027 2.07
Holdings subject to change

Exposure Breakdowns

Exposure Breakdowns

as of Sep 30, 2021

% of Market Value

Type Fund
as of Sep 30, 2021

% of Market Value

Type Fund
as of Sep 30, 2021

% of Market Value

Type Fund
Allocations subject to change.
as of Sep 30, 2021

% of Market Value

Type Fund
as of Sep 30, 2021

% of Market Value

Type Fund
as of Sep 30, 2021

% of Market Value

Type Fund
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

Investor Class Currency Distribution Frequency NAV NAV Amount Change NAV % Change 52wk High 52wk Low Bid Price ISIN TIS
A GBP Accumulating 1.26 0.00 0.08 1.27 1.22 1.25 GB00BZ6DDG44 -
X GBP Accumulating 1.34 0.00 0.07 1.35 1.28 1.33 GB00BZ6DDP35 -
Class Z GBP Daily 1.15 0.00 0.09 1.18 1.13 1.15 GB00BZ6DF359 -
X GBP Daily 1.15 0.00 0.09 1.18 1.13 1.15 GB00BZ6DDQ42 -
D GBP Accumulating 1.29 0.00 0.08 1.31 1.25 1.29 GB00BZ6DDJ74 -
D GBP Daily 1.15 0.00 0.09 1.18 1.13 1.15 GB00BZ6DDM04 -
Class S GBP - 1.05 0.00 0.10 1.07 1.03 1.04 GB00BFK3LW26 -
A GBP Daily 1.16 0.00 0.09 1.18 1.13 1.15 GB00BZ6DDH50 -
Class Z GBP Accumulating 1.31 0.00 0.08 1.32 1.26 1.30 GB00BZ6DDZ33 -

Portfolio Managers

Portfolio Managers

Simon Blundell
Simon Blundell
Ben Edwards
Ben Edwards

Literature

Literature