Fixed Income

BlackRock Sustainable 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.

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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Distributions

This fund does not have any distributions data as of now.

  2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Total Return (%) 6.04 -2.29 7.63 6.56 -0.10 -10.24 10.50
Target Benchmark 1 (%) 9.42

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

  1Y 3Y 5Y 10y Incept.
6.20 -0.68 1.70 - 2.75
Target Benchmark 1 (%) 9.72 - - - -
  YTD 1m 3M 6M 1Y 3Y 5Y 10y Incept.
-1.88 -1.34 1.62 5.04 6.20 -2.03 8.82 - 23.50
Target Benchmark 1 (%) 1.59 0.76 2.42 4.89 9.72 - - - -
  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

7.63 6.56 -0.10 -10.24 10.50
Target Benchmark 1 (%)

as of Dec 31, 2023

- - - - 9.42
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 GBP, hedged share class benchmark performance is displayed in GBP.

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 27, 2024 GBP 105,736,740
Share Class Inception Date May 17, 2016
Fund Inception Date May 17, 2016
Share Class Currency GBP
Base Currency GBP
Asset Class Fixed Income
Target Benchmark 1 3 Month SONIA ARR compounded in arrears + 450 bps
SFDR Classification -
Investment Association Category £ Strategic Bond
Initial Charge 5.00%
Ongoing Charge 1.08%
ISIN GB00BZ6DDH50
Annual Management Fee 1.00%
Performance Fee 0.00%
Minimum Initial Investment -
Minimum Subsequent Investment -
Use of Income Distributing
Domicile United Kingdom
Regulatory Structure UCITS
Management Company BlackRock Fund Managers Ltd
Morningstar Category GBP Flexible Bond
Dealing Settlement Trade Date + 3 days
Dealing Frequency Daily, forward pricing basis
Bloomberg Ticker BRSSBAI LN
SEDOL BZ6DDH5
Ongoing Charges Figure ex. Discount 1.08%
The Ongoing Charge may be discounted depending on the size of the fund.

Portfolio Characteristics

Portfolio Characteristics

Number of Holdings as of Feb 29, 2024 70
12m Trailing Yield as of Feb 29, 2024 3.09%
Standard Deviation (3y) as of Feb 29, 2024 10.43%
3y Beta as of - -
Yield to Maturity as of Feb 29, 2024 4.42%
Modified Duration as of Feb 29, 2024 6.20 yrs
Yield to Worst as of Feb 29, 2024 4.33%
Effective Duration as of Feb 29, 2024 6.20 yrs
Weighted Avg Maturity as of Feb 29, 2024 5.61 yrs
WAL to Worst as of Feb 29, 2024 5.61 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 Mar 21, 2024 AA
MSCI ESG % Coverage as of Mar 21, 2024 94.25
MSCI ESG Quality Score (0-10) as of Mar 21, 2024 7.29
MSCI ESG Quality Score - Peer Percentile as of Mar 21, 2024 89.71
Fund Lipper Global Classification as of Mar 21, 2024 Bond Global GBP
Funds in Peer Group as of Mar 21, 2024 311
MSCI Weighted Average Carbon Intensity (Tons CO2E/$M SALES) as of Mar 21, 2024 63.36
MSCI Weighted Average Carbon Intensity % Coverage as of Mar 21, 2024 82.09
All data is from MSCI ESG Fund Ratings as of Mar 21, 2024, based on holdings as of Aug 31, 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 Feb 29, 2024 0.00%
MSCI - UN Global Compact Violators as of Feb 29, 2024 0.00%
MSCI - Nuclear Weapons as of Feb 29, 2024 0.00%
MSCI - Thermal Coal as of Feb 29, 2024 0.00%
MSCI - Civilian Firearms as of Feb 29, 2024 0.00%
MSCI - Oil Sands as of Feb 29, 2024 0.00%
MSCI - Tobacco as of Feb 29, 2024 0.00%

Business Involvement Coverage as of Feb 29, 2024 80.03%
Percentage of Fund not covered as of Feb 29, 2024 19.97%
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 2.24%.

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 BlackRock Sustainable Sterling Strategic Bond Fund, Class A, as of Jan 31, 2023 rated against 70 GBP Flexible Bond Funds.

Morningstar Medalist Rating

Morningstar Medalist Rating - BRONZE
Morningstar has awarded the Fund a Bronze medal. Fewer than 10% of US open-end funds hold medalist ratings. (Effective Dec 31, 2023)

Risk Indicator

Risk Indicator

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

Holdings

Holdings

as of Feb 29, 2024
Name Weight (%)
UNITED KINGDOM OF GREAT BRITAIN AN 4.5 06/07/2028 8.42
UK CONV GILT 3.5 10/22/2025 3.82
TIME WARNER CABLE LLC 5.75 06/02/2031 2.97
COOPERATIEVE CENTRALE RAIFFEISEN-B MTN RegS 4.625 05/23/2029 2.96
LEGAL & GENERAL GROUP PLC RegS 5.125 11/14/2048 2.95
Name Weight (%)
BANCO SANTANDER SA MTN RegS 4.75 08/30/2028 2.78
YORKSHIRE WATER FINANCE PLC MTN RegS 5.25 04/28/2030 2.65
HSBC HOLDINGS PLC 6.8 09/14/2031 2.56
EON INTERNATIONAL FINANCE BV MTN RegS 6.25 06/03/2030 2.54
AT&T INC RegS 5.5 03/15/2027 2.39
Holdings subject to change

Exposure Breakdowns

Exposure Breakdowns

as of Feb 29, 2024

% of Market Value

Type Fund Benchmark Net
as of Feb 29, 2024

% of Market Value

Type Fund Benchmark Net
as of Feb 29, 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 Bid Price Offer Price ISIN
A GBP 1.07 1.08 GB00BZ6DDH50
Class S GBP 0.97 0.97 GB00BFK3LW26
X GBP 1.35 1.36 GB00BZ6DDP35
A GBP 1.24 1.25 GB00BZ6DDG44
D GBP 1.07 1.07 GB00BZ6DDM04
Class Z GBP 1.07 1.07 GB00BZ6DF359
D GBP 1.30 1.30 GB00BZ6DDJ74
X GBP 1.07 1.07 GB00BZ6DDQ42
Class Z GBP 1.31 1.32 GB00BZ6DDZ33

Portfolio Managers

Portfolio Managers

Simon Blundell
Simon Blundell
Ben Edwards
Ben Edwards

Literature

Literature