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 May

Commentary on market developments

The reopening of economies lifted developed market economic data in April as Covid-19 vaccine rollouts continued to proceed at a healthy pace. Equity markets had a strong month with developed market equities (MSCI World Index) ending the month up 4.1% in local currency terms and 4.7% in $ terms. Emerging markets (MSCI Emerging Markets Index) ended the month up 1.6% in local currency terms and 2.5% in $ terms. The Chinese economy continues to normalise and grew at 0.6% during the first quarter. However, the Covid-19 health crisis worsened in India in April as case fatality ratios increased significantly and pressure on health infrastructure intensified. Several states imposed restrictions and mobility declined, setting the economy up for a possible contraction in Q2. The USD ended the month down 2.1% in April as the Fed reiterated its message of ultra-low interest rates for longer. The Euro ended the month up 2.4% against the USD and 2.2% against the GBP as market expectations for European growth are improving on the back of faster vaccinations and falling Covid-19 hospitalisations. Within fixed income markets, US treasuries ended the month up 0.8% while UK gilts ended the month up 0.5%.

Within fixed income, 10-year government bonds for major developed regions finished the month in the red, with the exception of the US treasury yield that ended the month down. The sharp selloff in US bonds came to halt in April, helped by the comments of the Fed, while European yields rose amidst rising growth and inflation expectations. Benchmark 10-year yields fell by 12bps to 1.63% in the US, remained flat in the UK and Japan at 0.84% and 0.09% respectively, and climbed 10bps to -0.20% in Germany. Market expectations for higher demand for travel and acceleration of vaccination in Europe drove the oil price higher in April. The commodity ( Brent) ended the month 6% higher over the month at $67/ barrel. Amidst weakness in the USD and a fall in 10-year treasury yields, gold proved to be a safe haven for investors. The precious metal ended the month up 3.9% at $,1770/ounce.

Portfolio commentary from the fund managers

In April, the generally positive mood in markets also benefited the equity positions of the fund. US equities had the biggest positive impact but the fund also benefited from positions within the eurozone. Thematic equities also contributed with the Global Water ETF contributing strongly. On the negative side, Japanese and broad emerging Market equities detracted from performance, as both regions are hurt by a slow vaccine roll-out albeit with much lower covid case counts in Japan. Within fixed income, rising bond yields led to negative performance of US-treasuries. US corporate bond also detracted whilst their counterparts in the Eurozone benefited the portfolio. Gold and US-REITS both contributed to performance. We only alter our asset allocation slightly because we continue to expect a positive return from equities. We reduce US investment grade credit since spreads have gotten very tight recently and invest the proceeds into EUR and US treasuries. 

Source: BlackRock, Thomson Reuters DataStream, as of 30/04/2021. 

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.