Ultra Short Bond Funds

In the current climate of low or negative interest rates globally, seeking liquidity whilst achieving enhanced yield returns isn’t easy. The combination of increased regulation in the sector and low or negative yields have put a high price on liquidity.

Segmenting your cash

We believe that the most effective liquidity strategies select a specific investment solution for each cash segment; Operational Cash, Core Cash and Strategic Cash. This process of segmenting, or laddering, your cash can help to navigate the new liquidity environment and strike the right balance between liquidity needs and potential return.

Core Cash has the ability to seek enhanced returns through its slightly longer investment horizon over operational cash balances that need daily liquidity.

How do Standard Variable Net Asset Value (VNAV) money market funds work?

Standard VNAV money market funds are structurally designed as an incremental step out of prime money market funds, Standard VNAVs offset a degree of liquidity in exchange for potentially enhanced returns, by extending duration and slightly broadening the credit guidelines.

BlackRock ICS Ultra Short Bond Funds (USBF)

The BlackRock ICS Ultra Short Bond Funds (USBF) are managed as part of our ICS Money Market Fund range and are defined by ESMA as Standard VNAV funds. This is a reflection of our safety first approach and in response to demand from clients for a low volatility, enhanced cash plus strategy to enable strategic portioning of cash.

To find out more about the funds, download the investment guidelines.

Key features of the BlackRock ICS Ultra Short Bond Funds

BlackRock ICS Ultra Short Bond Funds are offered in Euro, Sterling, and US Dollar currencies and offer these key features:
AAf rated
AAf rated
*AAf rated by Standard and Poor's (S&P) with a S1+ volatility rating and minimum short-term rating of A-2/P-2/F2
Low volatility
Low volatility
Seeks to enhance returns through a 3+ month investment horizon with low volatility of principal
T+1 access
T+1 access
Managed with high levels of liquidity, offering investors T+1 access

Why BlackRock Cash Management?

Risk Management
Our in house proprietary risk systems help us ensure all risks are appropriately scaled.
Scale
Our ability to accommodate investor flows - both large and small - and our access to market is a direct result of our scaled platform.
Technology
Our integrated technology helps us create bespoke client solutions and enables ease of access.

*The credit ratings were solicited and financed by BlackRock

A money market fund (MMF) is not a guaranteed investment vehicle. An investment in MMFs is different from an investment in deposits; the principal invested in an MMF is capable of fluctuation and the risk of loss of the principal is to be borne by the investor. The MMF does not rely on external support for guaranteeing the liquidity of the MMF or stabilizing the NAV per share.

Risks 

Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. You may not get back the amount originally invested. Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy.

Changes in the rates of exchange between currencies may cause the value of investments to diminish or increase. Fluctuation may be particularly marked in the case of a higher volatility fund and the value of an investment may fall suddenly and substantially. Levels and basis of taxation may change from time to time.

ICS Fund-Specific Risks

The indicator is based on historical data and may not be a reliable indication of the future risk profile of the Fund. The risk category shown is not guaranteed and may change over time. The lowest category does not mean risk free. The Fund is rated one due to the nature of its investments which include the risks listed below. These factors may impact the value of the Fund’s investments or expose the Fund to losses.

Counterparty Risk: The insolvency of any institutions providing services such as safekeeping of assets or acting as counterparty to derivatives or other instruments, may expose the Fund to financial loss.

Credit Risk: The issuer of a financial asset held within the Fund may not pay income or repay capital to the Fund when due.

Accumulating Share Class Risk (Accumulating and Accumulating T0 Share Classes): On any day where the net return (i.e. return less costs and expenses) of the Fund is negative an Accumulating Share Class of the fund will see a decrease in the NAV per Share.

Important information 

This material is for distribution to Professional Clients (as defined by the Financial Conduct Authority or MiFID Rules) and Qualified Investors only and should not be relied upon by any other persons. 

Issued by BlackRock Investment Management (UK) Limited, authorised and regulated by the Financial Conduct Authority. Registered office: 12 Throgmorton Avenue, London, EC2N 2DL. Tel: + 44 (0)20 7743 3000. Registered in England and Wales No. 2020394. For your protection telephone calls are usually recorded. BlackRock is a trading name of BlackRock Investment Management (UK) Limited. Please refer to the Financial Conduct Authority website for a list of authorised activities conducted by BlackRock.

In the event where the United Kingdom leaves the European Union without entering into an arrangement with the European Union which permits firms in the United Kingdom to offer and provide financial services into the European Union (“No Deal Brexit Event”), the issuer of this material is:

BlackRock Investment Management (UK) Limited for all outside of the European Economic Area; and

BlackRock (Netherlands) B.V. for in the European Economic Area,

however, prior to a No Deal Brexit Event and where a No Deal Brexit Event does not occur, BlackRock Investment Management (UK) Limited will be the issuer.

When this document is issued in the EEA, it is issued by BlackRock (Netherlands) B.V.: Amstelplein 1, 1096 HA, Amsterdam, Tel: 020 – 549 5200, Trade Register No. 17068311. For more information, please see the website: HYPERLINK "http://www.blackrock.com" www.blackrock.com. For your protection, telephone calls are usually recorded. BlackRock is a trading name of BlackRock (Netherlands) B.V..

Any research in this document has been procured and may have been acted on by BlackRock for its own purpose. The results of such research are being made available only incidentally. The views expressed do not constitute investment or any other advice and are subject to change. They do not necessarily reflect the views of any company in the BlackRock Group or any part thereof and no assurances are made as to their accuracy. 

This document is for information purposes only and does not constitute an offer or invitation to anyone to invest in any BlackRock funds and has not been prepared in connection with any such offer. 

The Institutional Cash Series plc (the “Company”) is an investment company with variable capital and having segregated liability between its funds incorporated with limited liability under the laws of Ireland. The Company is an umbrella undertaking for collective investment in transferable securities (UCITS) governed by Irish law and authorised by the Central Bank of Ireland. 

Nothing herein constitutes an offer to invest in the Institutional Cash Series plc (“The Company”). Any decision to invest must be based solely on the information contained in the Company’s Prospectus, Key Investor Information Document and the latest half-yearly report and unaudited accounts and/or annual report and audited accounts. Investors should read the fund specific risks in the Key Investor Information Document. The distribution of this information in certain jurisdictions may be restricted and, persons into whose possession this information comes are required to inform themselves about and to observe such restrictions. Prospective investors should take their own independent advice prior to making a decision to invest in this fund about the suitability of the fund for their particular circumstances, including in relation to taxation, and should inform themselves as to the legal requirements of applying for an investment. 

Investments in the fund are not deposits with a bank or deposit-taking institution. While distributing shares of the fund seek to maintain a stable net asset value per share, investors may lose money by investing in the funds.

Austria: For further information, the prospectus, Key Investor Information Document, annual report and semi-annual report can be obtained free of charge in hardcopy form from the Austrian paying agent: Raiffeisen Zentralbank Österreich AG, A-1030 Vienna, Am Stadtpark 9. 

Finland: The prospectus (in English language) and KIID (in Finnish language) are available at BlackRock (UK) Limited. 

Germany: This is a financial promotion. For further information, the prospectus, Key Investor Information Document, annual report and semi-annual report can be obtained free of charge in hardcopy form from the German information centre: BlackRock (Netherlands) BV, German Branch, Frankfurt am Main, Bockenheimer Landstraße 2–4, 60306 Frankfurt am Main. The paying agent in Germany is J.P. Morgan AG, CIB / Investor Services – Trustee & Fiduciary, Taunustor 1 (Taunus Turm), D-60310 Frankfurt am Main. 

Netherlands: The risk indicator may not be a reliable indication of the future risk profile of the fund. The risk category shown is not guaranteed and may change over time. The lowest category does not mean risk free. 

The Fund is a UCITS (icbe) as defined in section 1:1 Financial Markets Supervision Act (Wet op het financieel toezicht; "FMSA"). The Fund and its sub funds are listed in the register as defined in section 1:107 FMSA. Please refer to the Key Investor Information Document (essentiële beleggersinformatie; "EBI") for further information about the Fund and its sub funds. 

The prospectus and EBI of the Fund and its sub funds are available on BlackRock's website, www.BlackRock.nl. All financial investments contain a certain risk. The value of the assets managed by the Fund and its sub funds may greatly fluctuate as a result of the investment policy and your initial investment is not guaranteed. 

Norway: The prospectus and KIID are available at BlackRock (Netherlands) BV. 

Spain: Certain funds mentioned here are registered for distribution in Spain. In Spain, the Institutional Cash Series PLC range is registered with the number 542 in the Comisión Nacional del Mercado de Valores de España (CNMV) and the Prospectus for each registered fund has been registered with the CNMV. No securities regulator in any country within Spain has confirmed the accuracy of any information contained herein.

Sweden: The prospectus and KIID are available at BlackRock Investment Management (UK) Limited, Stockholm branch, Norrlandsgatan 16, 111 43 Stockholm, Sweden. Investors should read the KIID before making an investment decision.

Switzerland: This document is marketing material. For qualified investors in Switzerland: this document shall be exclusively made available to, and directed at, qualified investors as defined in the Swiss Collective Investment Schemes Act of 23 June 2006, as amended.

The Institutional Cash Series plc is domiciled in Ireland. BlackRock Asset Management Schweiz AG, Bahnhofstrasse 39, CH-8001 Zurich, is the Swiss Representative and State Street Bank International GmbH, Munich, Zurich Branch, Beethovenstrasse 19, CH-8002 Zürich, the Swiss Paying Agent. The Prospectus, Key Investor Information Document, the Articles of Incorporation, the latest and any previous annual and semi-annual reports are available free of charge from the Swiss Representative. Investors should read the fund specific risks in the Key Investor Information Document and the Prospectus. 

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