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 November

Commentary on market developments

October news was dominated by the resurgence in COVID-19 cases in Europe and the upcoming US elections. Markets responded positively to polls indicating an increased likelihood of a Democratic sweep against a backdrop of continued gridlock in Washington on a new fiscal package. However, positive gains in US and European stocks were erased towards the end of the month as volatility spiked in reaction to the new lockdowns. Developed markets (MSCI World Index) were down 3% in local currency terms and in $ terms. Emerging markets (MSCI Emerging Markets Index) gained 1.5% in local currency terms and 2.1% in $ terms led by strong performance in Chinese stocks. Within fixed income markets, US treasuries returned -1% while UK gilts returned -0.6% over the month. The European Council meeting took place in mid-October to agree a trade deal for Brexit. Although an agreement was not reached, Sterling was up 0.8% against the Euro as investor optimism rose over revived negotiations. Within fixed income, 10-year government bonds performed positively across Europe as virus concerns pushed yields lower, while finishing in red for the US and UK. Benchmark 10-year yields rose by 18bps to 0.86% in the US, 3bps to 0.04% in Japan, 3 bps to 0.26% in the UK and declined 10bps to -0.62% in Germany (Thomson Reuters DataStream as of 31/10/2020).

After delivering 23.7% YTD, gold performed negatively for the third consecutive month, returning -1% in October and ending the month at $1881/ounce. The rising number of COVID-19 infections, second wave lockdowns and travel restrictions presented a serious threat to oil demand. The commodity (Brent) ended the month down 8.4%, ending the month at $38/barrel.

Portfolio commentary from the fund managers

As equity markets fell, EUR long duration government bonds were able to soften the impact on portfolios. Lon duration USD government bonds detracted as markets began to price in a Biden fiscal stimulus package. Mortgage backed securities contributed as did investment grade corporate bonds. USD-High yield bonds contributed, but their EUR counterparts detracted. Only Brazil and Indian equities retracted slightly. Developed market equities detracted with US equities outperforming their peers. Gold was barely changed. Considering our overall constructive view on capital markets in the next months but with the potential for short-term volatility in mind, we cautiously increased risks in the portfolios by increasing equity exposure. We sold ESG enhanced US-equities as well as their Japanese counterparts to fund allocations into thematic exposures such as equities with focus on digitalisation and digital security as well as specific emerging market country exposures such as Taiwan and Brazil. By rotating into more specific exposures, we hope to benefit from new alpha opportunities. In sum we increased our developed market equity allocation but reduced emerging market equities. Within bonds we sold USD investment grade exposures. 

Source: BlackRock, Thomson Reuters DataStream, as of 31/10/2020. 

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.