FOR QUALIFIED INVESTORS

BlackRock Defensive Yield Fund

Today’s environment demands new solutions

With return expectations from many fixed income sectors remaining low and inflation expectations on the rise, we understand investors’ need for a risk-managed fixed income product that aims to deliver a positive return. So we designed a unique solution in a market segment where few solutions exist.

Why this fund?

The fund seeks to generate a positive return by blending the BGF Euro Short Duration Bond Fund and Credit Screened corporate bond strategies, targeting a low level of interest rate duration and credit risk, while also mitigating tail risk through a comprehensive screening and optimization process.

Unique

Unique

Through its use of a blend of active and semi-active strategies and our Credit Screened security selection methodology.

Disciplined

Disciplined

Through an unrelenting focus on risk management that targets a low level of interest rate duration and credit risk.

Cost efficient

Cost efficient

Through our focus on the most liquid bonds to lower transaction costs and a security selection methodology that aims to avoid riskier credits in a cost-effective fashion.

Who should consider this fund?

The fund could appeal to investors:

  • Looking for a low duration, diversified and risk-managed credit solution to add to their broader mix of assets
  • Willing to take on some risk to pursue a relatively attractive yield
  • Unwilling to suffer low or even negative deposit rates on their account

Fund essentials

Fund Flyer



Fund Flyer

Discover the key reasons for investing in this fund and learn what type of investor it should appeal to.

Download Fund Flyer

Meet our BlackRock Defensive Yield Team


Michael Harper
Michael Harper
Head of EMEA Fixed Income Portfolio Solutions within BlackRock’s Model-Basel Fixed Income Portfolio Management Group

Riyadh Ali
Riyadh Ali
Portfolio manager within BlackRock’s Model-Based Fixed Income Portfolio Management Group

Lauritz Ringdal
Lauritz Ringdal
Head of the Model-Basel Fixed Income Credit Team

Felicity Percy
Felicity Percy
Lead Product Strategist for Model-Based and Index-Fixed Income Funds

The BlackRock Defensive Yield Fund is a sub-fund of the BlackRock UCITs Funds (the ‘Fund’). The Fund is structured as a unit trust and qualifies and is authorised in Ireland by the Central Bank of Ireland or any successor thereof (the ‘Central Bank’) as a UCITS for the purposes of the UCITS Regulations.
Investment in the Fund is only open to ‘Qualified Holders’, as defined in the relevant Fund Prospectus. Any decision to invest must be based solely on the information contained in the Fund’s Prospectus, Key Investor Information Document and the latest half-yearly report and unaudited accounts and/or annual report and audited accounts. Prospectuses, Key Investor Information Documents and application forms may not be available to investors in certain jurisdictions where the Fund in question has not been authorised. Units may not be offered or sold in the United Kingdom except as permitted by the Financial Services and Markets Act 2000 (as amended) (‘FSMA 2000’) and the regulations made under it, and this Prospectus may not be communicated to any person in the United Kingdom except in circumstances permitted by FSMA 2000 or those regulations or to a person to whom this Prospectus may otherwise lawfully be issued in the United Kingdom. The BlackRock Defensive Yield Fund may invest in excess of 30% of its assets in fixed income securities which are below investment grade. As such, this Sub-Fund should not constitute a substantial proportion of an investment portfolio and may not appropriate for all investors.
BlackRock Global Funds (BGF) is an open-ended investment company established and domiciled in Luxembourg which is available for sale in certain jurisdictions only. BGF is not available for sale in the U.S. or to U.S. persons. Product information concerning BGF should not be published in the U.S. It is recognised under Section 264 of the Financial Services and Markets Act 2000. BlackRock Investment Management (UK) Limited is the UK distributor of BGF. Most of the protections provided by the UK regulatory system, and the compensation under the Financial Services Compensation Scheme, will not be available. A limited range of BGF sub-funds have a reporting fund status A sterling share class that seeks to comply with UK Reporting Fund Status requirements. Subscriptions in BGF are valid only if made on the basis of the current Prospectus, the most recent financial reports and the Key Investor Information Document, which are available on our website. Prospectuses, Key Investor Information Documents and application forms may not be available to investors in certain jurisdictions where the Fund in question has not been authorised. Overseas investment will be affected by movements in currency exchange rates. The fund(s) may invest in structured credit products such as asset backed securities (‘ABS’) which pool together mortgages and other debts into single or multiple series credit products which are then passed on to investors, normally in return for interest payments based on the cash flows from the underlying assets. These securities have similar characteristics to corporate bonds but carry greater risk as the details of the underlying loans is unknown, although loans with similar terms are typically packaged together. The stability of returns from ABS are not only dependent on changes in interest rates but also changes in the repayments of the underlying loans as a result of changes in economic conditions or the circumstances of the holder of the loan. These securities can therefore be more sensitive to economic events, may be subject to severe price movements and can be more difficult and/or more expensive to sell in difficult markets.
Fund Specific Risks: The Fund invests in fixed interest securities issued by companies. There is a risk of default where the issuing company may not pay income or repay capital to the Fund when due. The Fund’s investments may have low liquidity which often causes the value of these investments to be less predictable. In extreme cases, the Fund may not be able to realise the investment at the latest market price or at a price considered fair. 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. The Fund invests in high yielding bonds. Companies which issue higher yield bonds typically have an increased risk of defaulting on repayments. In the event of default, the value of your investment may reduce. Economic conditions and interest rate levels may also impact significantly the values of high yield bonds.
The BlackRock Global Funds (BGF) Euro Short Duration Bond Fund is domiciled in Luxembourg. 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 Zurich, 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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