Fixed Income

BlackRock Corporate Bond Fund

Overview

Important Information: Capital at Risk. All financial investments involve an element of risk. Therefore, the value of your investment and the income from it will vary and your initial investment amount cannot be guaranteed.

The value of your investment and the income from it will vary and your initial investment amount is not guaranteed.


Some or all of the Manager’s annual charge for the Fund is taken from capital rather than from income. This increases the income, but reduces the potential for capital growth. 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. 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.

All currency hedged share classes of this fund use derivatives to hedge currency risk. The use of derivatives for a share class could pose a potential risk of contagion (also known as spill-over) to other share classes in the fund. The fund’s management company will ensure appropriate procedures are in place to minimise contagion risk to other share class. Using the drop down box directly below the name of the fund, you can view a list of all share classes in the fund – currency hedged share classes are indicated by the word “Hedged” in the name of the share class. In addition, a full list of all currency hedged share classes is available on request from the fund’s management company

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.
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Performance

Performance

  • Returns

The figures shown relate to past performance. Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy.

Share Class and Benchmark performance displayed in GBP, hedged Share Class Benchmark performance is displayed in GBP.

Performance is shown on a Net Asset Value (NAV) basis, with gross income reinvested where applicable. 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. Source: Blackrock

Chart

Performance chart data not available for display.
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Reinvestments

This product does not have any distributions data as of now.

Key Facts

Key Facts

Size of Fund (Millions) as of 26-May-20 GBP 1,199.139
Price Yield as of 26-May-20 2.44
Base Currency British Pound
Fund Launch Date 24-Jul-95
Share Class launch date 24-Jul-95
Asset Class Fixed Income
Benchmark Index ICE BofAML Sterling Corporate & Collateralized Index
Investment Association Category £ Corporate Bond
Domicile United Kingdom
Regulatory Structure UCITS
Management Company BlackRock Fund Managers Ltd
ISIN GB0005769541
Bloomberg Ticker MRCHYBA
Initial Charge 3.25%
Performance Fee 0.00%
SEDOL 0576954
Bloomberg Benchmark Ticker MH2-HP
Dealing Settlement Trade Date + 3 days
Dealing Frequency Daily, forward pricing basis
Minimum Initial Investment GBP 500
Minimum Subsequent Investment GBP 50
Use of Income Accumulating

Sustainability Characteristics

Sustainability Characteristics

Sustainability Characteristics can help investors integrate non-financial, material sustainability considerations into their investment process. These metrics enable investors to evaluate funds based on their environmental, social, and governance (ESG) risks and opportunities. This analysis can provide insight into the effective management and long-term financial prospects of a fund.


The metrics below have been provided for transparency and informational purposes only. The existence of an ESG rating is not indicative of how or whether ESG factors will be integrated into a fund. The metrics are based on MSCI Fund Ratings and, unless otherwise stated in Fund documentation and included within a Fund’s investment objective, ESG integration does not change a Fund’s investment objective or constrain the Investment Manager’s investable universe, and there is no indication that an ESG or Impact focused investment strategy or exclusionary screens will be adopted by a Fund. For more information regarding a fund's investment strategy, please see the fund's prospectus.


Review the MSCI methodology behind the Sustainability Characteristics, using links below.

MSCI ESG Quality Score - Peer Percentile The fund’s ESG Percentile compared to its Lipper peer group. as of 01-May-20 4.20
Fund Lipper Global Classification The fund peer group as defined by the Lipper Global Classification. as of 01-May-20 Bond GBP Corporates
All data is from MSCI ESG Fund Ratings as of 01-May-20, based on holdings as of 31-Oct-19. As such, the funds sustainable characteristics may differ from MSCI ESG ratings from time to time.

To be included in MSCI ESG Fund Ratings, 65% of the fund’s underlying holdings (excluding cash positions) must be covered by MSCI ESG Research, the fund’s holdings date must be less than one year old, and the fund must have at least ten securities. For newly launched funds, sustainability characteristics are typically available 6 months after launch.

Business Involvement

Business Involvement

Business Involvement metrics can help investors gain a more comprehensive view of specific activities in which a fund may be exposed through its investments.


Transparency on Business Involvement metrics is not indicative of a fund’s investment objective, and, unless otherwise stated in Fund documentation and included within a Fund’s investment objective, ESG integration does not change a Fund’s investment objective or constrain the Investment Manager’s investable universe, and there is no indication that an ESG or Impact focused investment strategy or exclusionary screens will be adopted by a Fund. For more information regarding a fund's investment strategy, please see the fund's prospectus.


Review the MSCI methodology behind the Business Involvement metrics using links below.


Business Involvement metrics are calculated using MSCI ESG Research which provides a profile of each company’s specific business involvement. BlackRock leverages this research to provide a summed up view across holdings and translates it to a Fund's market value exposure to the listed Business Involvement areas above.


Business Involvement metrics are designed only to identify companies where MSCI has conducted research and identified as having involvement in the covered activity. As a result, it is possible there is additional involvement in these covered activities where MSCI does not have coverage. This information should not be used to produce comprehensive lists of companies without involvement.

Risk Indicator

Risk Indicator

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Low Risk High Risk
Typically low rewards Typically high rewards

Ratings

Ratings

Morningstar Rating

Overall Morningstar Rating for BlackRock Corporate Bond Fund, Class A, as of 30-Apr-20 rated against 488 GBP Corporate Bond Funds.

Morningstar Analyst Rating

Morningstar Analyst Rating - Silver
Morningstar has awarded the Fund a Silver medal. Fewer than 10% of US open-end funds hold medalist ratings. (Effective 29-Aug-19)

Holdings

Holdings

as of 30-Apr-20
Name Weight (%)
TESCO PROPERTY RegS 2.83
KFW MTN RegS 0.875 09/15/2026 2.66
WELLS FARGO & COMPANY MTN RegS 2 07/28/2025 2.51
TIME WARNER CABLE LLC 5.75 06/02/2031 2.14
METROPOLITAN LIFE GLOBAL FUNDING I MTN RegS 1.625 09/21/2029 2.04
Name Weight (%)
BAT CAPITAL CORP MTN RegS 2.125 08/15/2025 1.78
IMPERIAL BRANDS FINANCE PLC MTN RegS 5.5 09/28/2026 1.74
HSBC HOLDINGS PLC MTN RegS 6 03/29/2040 1.65
ALTRIA GROUP INC 2.2 06/15/2027 1.65
BRITISH TELECOMMUNICATIONS PLC MTN RegS 3.125 11/21/2031 1.57
Holdings subject to change

Exposure Breakdowns

Exposure Breakdowns

as of 30-Apr-20

% of Market Value

Type Fund Benchmark Net
as of 30-Apr-20

% of Market Value

Type Fund Benchmark Net
as of 30-Apr-20

% of Market Value

Type Fund Benchmark Net
Allocations subject to change.
as of 30-Apr-20

% of Market Value

Type Fund Benchmark Net
as of 30-Apr-20

% of Market Value

Type Fund Benchmark Net
as of 30-Apr-20

% of Market Value

Type Fund Benchmark Net
Negative weightings may result from specific circumstances (including timing differences between trade and settle dates of securities purchased by the funds) and/or the use of certain financial instruments, including derivatives, which may be used to gain or reduce market exposure and/or risk management. Allocations are subject to change.

Pricing & Exchange

Investor Class Distribution Frequency Bid Price ISIN TIS
Class A None 3.49 GB0005769541 -
Class S Daily 1.14 GB00BK1PK476 -
Class X None 1.34 GB00BQJZV592 -
Class D None 3.64 GB00B4QC3311 -
Class A Daily 1.13 GB0003749982 -
Class S None 1.36 GB00BK1PJT53 -
Class D Daily 1.19 GB00B4T5JV79 -

Portfolio Managers

Portfolio Managers

Ben Edwards

Ben Edwards, CFA, Managing Director, is a Portfolio Manager in the Sterling Bond Portfolio team within BlackRock's Global Fixed Income Group. Mr. Edwards is the lead fund manager of the BlackRock Corporate Bond Fund and co-manager of the BlackRock Sterling Strategic Bond Fund.

Literature

Literature