Fixed Income

BlackRock Sustainable Sterling Short Duration Credit 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. 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.

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

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  2019 2020 2021 2022 2023
Total Return (%) 2.08 0.29 -6.79 8.13
Target Benchmark 1 (%) 1.80 1.59 2.92 6.28

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

  1Y 3Y 5Y 10y Incept.
6.04 0.20 - - 0.81
Target Benchmark 1 (%) 6.56 3.87 - - 3.21
  YTD 1m 3M 6M 1Y 3Y 5Y 10y Incept.
-0.68 -0.52 1.71 5.20 6.04 0.59 - - 3.65
Target Benchmark 1 (%) 1.10 0.53 1.68 3.38 6.56 12.07 - - 15.14
  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

- 2.08 0.29 -6.79 8.13
Target Benchmark 1 (%)

as of Dec 31, 2023

- 1.80 1.59 2.92 6.28
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 28, 2024 GBP 924,848,442
Share Class Inception Date Sep 12, 2019
Fund Inception Date Sep 12, 2019
Share Class Currency GBP
Base Currency GBP
Asset Class Fixed Income
Target Benchmark 1 3 Month SONIA Compounded in Arrears + 1.5%
SFDR Classification -
Investment Association Category £ Corporate Bond
Initial Charge 0.00%
Ongoing Charge 0.17%
ISIN GB00BFK3LT96
Annual Management Fee 0.15%
Performance Fee 0.00%
Minimum Initial Investment GBP 1000000
Minimum Subsequent Investment GBP 100
Use of Income Accumulating
Domicile United Kingdom
Regulatory Structure UCITS
Management Company BlackRock Fund Managers Ltd
Morningstar Category GBP Corporate Bond - Short Term
Dealing Settlement Trade Date + 3 days
Dealing Frequency Daily, forward pricing basis
Bloomberg Ticker BRSDCIA
SEDOL BFK3LT9
Ongoing Charges Figure ex. Discount 0.17%
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 308
Standard Deviation (3y) as of Feb 29, 2024 5.64%
3y Beta as of Feb 29, 2024 2.511
Yield to Maturity as of Feb 29, 2024 5.03%
Modified Duration as of Feb 29, 2024 3.16 yrs
Yield to Worst as of Feb 29, 2024 4.97%
Effective Duration as of Feb 29, 2024 3.13 yrs
Weighted Avg Maturity as of Feb 29, 2024 2.74 yrs
WAL to Worst as of Feb 29, 2024 2.74 yrs

Sustainability Characteristics

Sustainability Characteristics

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. 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 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 78.38%
Percentage of Fund not covered as of Feb 29, 2024 21.62%
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 1.87%.

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 Short Duration Credit Fund, Class I, as of Jan 31, 2023 rated against 86 GBP Corporate Bond - Short Term 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

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Low Risk High Risk
Low Yield High Yield

Holdings

Holdings

as of Feb 29, 2024
Name Weight (%)
UNITE (USAF) II PLC RegS 3.921 06/30/2025 1.34
NIE FINANCE PLC RegS 6.375 06/02/2026 1.22
LONDON AND QUADRANT HOUSING TRUST RegS 2.625 05/05/2026 1.22
ANGLIAN WATER OSPREY FINANCING PLC MTN RegS 4 03/08/2026 1.21
DS SMITH PLC MTN RegS 4.375 07/27/2027 1.17
Name Weight (%)
YORKSHIRE WATER FINANCE 6.454 05/28/2027 1.15
RENTOKIL INITIAL FINANCE BV MTN RegS 3.875 06/27/2027 1.11
ABN AMRO BANK NV MTN RegS 5.125 02/22/2028 1.09
DIGITAL DUTCH FINCO BV RegS 0.625 07/15/2025 1.08
ELECTRICITY NORTH WEST LTD RegS 8.875 03/25/2026 1.07
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
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
I GBP 1.05 1.05 GB00BFK3LT96
Class I Inc GBP 1.02 1.03 GB00BN091156
X GBP 1.05 1.06 GB00BFK3LV19
D GBP 1.05 1.05 GB00BFK3LS89
X GBP 0.95 0.95 GB00BFK3LX33

Portfolio Managers

Portfolio Managers

Demi Budwig
Demi Budwig
Simon Blundell
Simon Blundell

Literature

Literature