BlackRock Managed Index Portfolios.

The beauty of active index investing.

BlackRock Managed Index Portfolios.

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.

Portfolio composition BSF - BlackRock Managed Index Portfolios as of

Overview of allocation

Asset classes (1st level)
Asset classes (2nd level)

Risk: Diversification and asset allocation may not fully protect you from market risk.

For illustrative purposes only.

 

Allocation in detail

Weighting

Rounding differences possible.

Source: BlackRock, as of . All included funds are iShares branded. The portfolio allocation can change and contains residual amounts in cash or currency forwards, which are used to hedge currency risks.

Please note that the prices and valuation information (the Information) is unaudited and is based on unaudited price and holding data. As such the Information is indicative only and is subject to change. BlackRock Investment Management (UK) Limited ("BlackRock") makes no representations or warranties of any kind, either express or implied, in respect of the Information. In particular, but without limiting the foregoing, BlackRock does not represent or warrant that the Information is reconciled, accurate, complete, error-free, virus free, or that results obtained from use of the Information will be correct.

Monthly review June

Commentary on market developments

The month saw strong economic data releases but market moves remained muted with investors concerned about inflation and withdrawal of policy support, especially in the US. The on-going vaccine rollout has allowed many economies to gradually reopen, and in combination with sizeable fiscal support, is enabling a big bounce in economic activity. Against this background, developed markets (MSCI World Index) ended the month up 1.5%. Emerging Markets  (MSCI Emerging Markets Index) ended the month up 2.3% amidst signs of global economic recovery and transition out of the pandemic. US dollar weakness was beneficial for the asset class, which outperformed its developed counterpart in May (in USD terms, as shown above). The greenback ended the month down 1.4% as investors began rotating out of safe havens such as the USD amidst the improving outlook for global growth. Moreover, the uptick in inflation is denting the dollar’s appeal, while the Fed has not yet been explicit about the timing of tapering bond purchases. As the UK continued to relax mobility restrictions, sterling ended the month up 2.7% against the USD and 1.1% against the EUR. Additionally, a BoE voting member commented regarding a rate rise possibly being appropriate soon after the first quarter of 2022, providing further support to the currency. Within fixed income markets, US treasuries ended the month up 0.3% while UK gilts ended the month up 0.5%.

May was a quiet month for sovereigns. 10-year government bonds for major developed regions remained range-bound. Although yields in the Euro area were declining amidst the vaccine rollout and the economic recovery gaining traction, the dovish comments from the ECB reversed the gains. Benchmark 10-year yields fell by 4bps to 1.59% in the US, 5bps to 0.80% in the UK, 1bp to 0.08% in Japan, but climbed 2bps to -0.18% in Germany and 5bps to 0.92% in Italy. The return to normal patterns of consumption by several countries led oil to finish the month higher as demand increased. The commodity (Brent) ended the month 3.5% higher at $70/ barrel. Gold ended the month higher 7.7% at $1906/ounce. The strong performance was underpinned by the weakening USD and growing inflationary pressure. The yellow metal which is widely perceived as a hedge of inflation saw its lustre increase amidst rising inflation.

Portfolio commentary from the fund managers

The winners in May were mainly European equities, which have been expected to post above-average earnings results with the expected restart of the economy. Within the bond segment, government bonds were little changed overall, while corporate, High Yield and Emerging Market bonds posted small to moderate gains. And gold also benefited from an intensified discussion about further rising inflation. In order, to stronger participate on the equity side in the event of rising inflation in the future, we have reallocated to the European financial sector. The financial sector in particular should benefit from an economic recovery as well as from a steeping of the yield curve. In that sense, we have also increased the weighting in Agribusiness, being part of our thematic investment extract. At the same time, we moderately reduced the interest rate sensitivity in the bond sector by reducing US government bonds with a longer duration.

Source: BlackRock, Thomson Reuters DataStream, as of 31/05/2021. 

Specific fund risks:

Exchange rate risk - 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.

Fixed income risk - Two main risks related to fixed income investing are interest rate risk and credit risk. Typically, when interest rates rise, there is a corresponding decline in the market value of bonds. Credit risk refers to the possibility that the issuer of the bond will not be able to repay the principal and make interest payments.

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 Share Class to financial loss.

Liquidity Risk - Lower liquidity means there are insufficient buyers or sellers to allow the Fund to sell or buy investments readily.

Equity Risk - The value of equities and equity-related securities can be affected by daily stock market movements. Other influential factors include political, economic news, company earnings and significant corporate events.