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 August

Commentary on market developments

The global economic recovery continued in July with steady progress in the vaccine rollout and easing of mobility restrictions in major developed regions. However, the rise of the Delta variant has called into question the sustainability of economic momentum. Despite market volatility, developed equities outperformed their emerging counterpart, returning 1.7% over the month. The positive performance was led by the US as a result of the strong earnings season. China was a drag on EM equity performance as the government tightened regulations in the tech and private education sectors, introducing further uncertainty. Against this backdrop, EM equities ended the month 6% lower. Sterling ended the month 0.6% higher against the USD and 0.4% higher against the EUR, aided by a reduction in Covid cases in the UK and investor expectations that the Bank of England is on a path to raising interest rates in 2022. The receding pandemic is expected to boost business investment and consumer confidence in the UK, supporting expectations for economic growth. Within fixed income markets, US treasuries ended the month up 1.3% while UK gilts ended the month up 2.8%.

10-year government bonds finished July in the green as yields declined across the board for major developed regions. Concerns over the Covid-19 Delta variant and signs of global growth moderating caused investors to shift toward safer investments. In the US, bond demand has been unusually strong due to a combination of Fed purchases and institutions looking to rebalance, following a strong period of equity gains. Benchmark 10-year yields fell by 21bps to 1.24% in the US, 15bps to 0.57% in the UK, 4bps to 0.02% in Japan, 26bps to -0.46% in Germany and 20 bps to 0.63% in Italy. Oil demand appears to be growing faster than supply. Moreover, higher vaccination rates are likely to eliminate the need for harsh lockdowns, therefore oil demand is less likely to be impacted. Against this backdrop, oil (Brent) finished the month 1.6% higher at $76/ barrel. The combination of declining nominal yields and high inflation are increasing investor interest in gold. Additionally, dollar depreciation has further increased the allure of the yellow metal. The commodity ended the month up 3.3% at $1,823/ ounce.

Portfolio commentary from the fund managers

Developed Markets equities and foremost the USA performed best. In contrast, Emerging Markets and in particular China equities recorded significant losses. While the Developed Markets increasingly looked to good fundamental news, investors reacted with great concern to the political interference in the Chinese technology sector. Government bonds benefited from the assumption that the current high US inflation was only temporary and that the US Federal Reserve would continue to pursue an expansionary policy for a long time. On the other hand, there was some profit-taking in corporate and high-yield bonds. Gold also gained moderately in the reporting period. We have only made minor changes to the profile. We reduced Chinese Government bonds and redeployed into Emerging Market bonds, leaving the interest rate sensitivity (duration) unchanged. On the equity side, we increased investments in Global Timber & Forestry, Ageing Population and Global Water, while reducing positions in Agribusiness, Digitalisation and Automation & Robotics.

Source: BlackRock, Bloomberg, as of 31/07/2021.

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.