Fixed Income

BlackRock Global Absolute Return Bond Fund

Overview

Important Information: 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.

The fund invests a large portion of assets which are denominated in other currencies; hence changes in the relevant exchange rate will affect the value of the investment. The fund invests in fixed interest securities issued by companies which, compared to bonds issued or guaranteed by governments, are exposed to greater risk of default in the repayment of the capital provided to the company or interest payments due to the fund. The fund invests in fixed interest securities such as corporate or government bonds which pay a fixed or variable rate of interest (also known as the ‘coupon’) and behave similarly to a loan. These securities are therefore exposed to changes in interest rates which will affect the value of any securities held. The fund invests in high yielding bonds. Companies who 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. Compared to more established economies, the value of investments in developing Emerging Markets may be subject to greater volatility due to differences in generally accepted accounting principles or from economic or political instability. The strategies utilised by the Fund involve the use of derivatives to facilitate certain investment management techniques including the establishment of both 'long' and 'synthetic short' positions and creation of market leverage for the purposes of increasing the economic exposure of a Fund beyond the value of its net assets. The use of derivatives in this manner may have the effect of increasing the overall risk profile of the Funds. Investors in this fund should understand that the Fund is not guaranteed to produce a positive return and as an absolute return product, performance may not move in line with general stock market trends as both positive and negative share movements affect the overall value of the fund. The Manager employs a risk management process to oversee and manage derivative exposure within the Fund. The fund investments may be subject to liquidity constraints, which means that shares may trade less frequently and in small volumes, for instance smaller companies. As a result, changes in the value of investments may be more unpredictable. In certain cases, it may not be possible to sell the security at the last market price quoted or at a value considered to be fairest. Investors in this Fund should understand that the Fund is not guaranteed to produce a positive return and as an absolute return product, performance may not move in line with general market trends or fully benefit from a positive market environment. The Manager employs a risk management process to oversee and manage derivative exposure within the Fund. The Fund will attempt to reduce (or 'hedge') the risk of currency movements between the Base Currency and the currency in which some or all of the underlying investments are transacted. It should be noted that the hedging strategy employed will not completely eliminate the exposure of the Fund to movements between the Base Currency and these other currencies. The hedging strategies may be entered into whether the Base Currency is declining or increasing in value compared to the currency of the underlying investments. This may have a positive or negative impact on the performance of the Fund.

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

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Performance

Performance

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This chart shows the fund's performance as the percentage loss or gain per year over the last 7 years. It can help you to assess how the fund has been managed in the past and compare it to its benchmark.

  2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Total Return (%) 0.9 0.8 1.7 -3.0 2.0 3.4 -1.5
Comparator Benchmark 1 (%) 0.0 -0.2 -0.3 -0.3 -0.3 -0.4 -0.5
  From
30-Jun-2017
To
30-Jun-2018
From
30-Jun-2018
To
30-Jun-2019
From
30-Jun-2019
To
30-Jun-2020
From
30-Jun-2020
To
30-Jun-2021
From
30-Jun-2021
To
30-Jun-2022
Total Return (%)

as of 30-Jun-22

-0.73 -0.40 0.45 4.38 -3.61
Comparator Benchmark 1 (%)

as of 30-Jun-22

-0.33 -0.31 -0.36 -0.50 -0.59
  1y 3y 5y 10y Incept.
-2.30 0.72 0.02 - 0.40
Comparator Benchmark 1 (%) -0.67 -0.53 -0.44 - -0.33
  YTD 1m 3m 6m 1y 3y 5y 10y Incept.
-0.95 0.38 0.13 0.33 -2.30 2.18 0.10 - 3.19
Comparator Benchmark 1 (%) -0.49 -0.07 -0.23 -0.39 -0.67 -1.57 -2.20 - -2.58

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 EUR, hedged Share Class Benchmark performance is displayed in EUR.

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

 

Key Facts

Key Facts

Net Assets of Fund as of 30-Sep-22 EUR 137,654,490
Share Class launch date 29-Oct-14
Fund Launch Date 25-May-12
Share Class Currency EUR
Fund Base Currency EUR
Asset Class Fixed Income
Comparator Benchmark 1 3 Month Euribor Index
SFDR Classification Other
Initial Charge 0.00%
Ongoing Charges Figures 0.65%
Annual Management Fee 0.50%
Performance Fee 0.00%
Minimum Initial Investment EUR 10,000,000.00
Minimum Subsequent Investment EUR 10,000.00
Use of Income Accumulating
Domicile Luxembourg
Regulatory Structure UCITS
Management Company BlackRock (Luxembourg) S.A.
Morningstar Category Global Flexible Bond - EUR Hedged
Dealing Settlement Trade Date + 3 days
Dealing Frequency Daily, forward pricing basis
Bloomberg Ticker BSGAI2E
ISIN LU1129992563
SEDOL BRYFYW9

Portfolio Characteristics

Portfolio Characteristics

Number of Holdings as of 31-Aug-22 639
Standard Deviation (3y) as of 31-Aug-22 3.90%
3y Beta as of 31-Aug-22 16.525
Yield to Maturity as of 31-Aug-22 3.53
Modified Duration as of 31-Aug-22 -1.08
Weighted Average YTM as of 31-Aug-22 3.57%
Effective Duration as of 31-Aug-22 -1.17
Weighted Avg Maturity as of 31-Aug-22 3.85
WAL to Worst as of 31-Aug-22 3.85

Sustainability Characteristics

Sustainability Characteristics

To be included in MSCI ESG Fund Ratings, 65% of the fund’s gross weight must come from securities with ESG coverage by MSCI ESG Research (certain cash positions and other asset types deemed not relevant for ESG analysis by MSCI are removed prior to calculating a fund’s gross weight; the absolute values of short positions are included but treated as uncovered), 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. MSCI Ratings are currently unavailable for this fund.

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.


Business Involvement metrics are not indicative of a fund’s investment objective, and, unless otherwise stated in fund documentation and included within a fund’s investment objective, do not change a fund’s investment objective or constrain the fund’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.

MSCI - Controversial Weapons as of 31-Aug-22 0.00%
MSCI - UN Global Compact Violators as of 31-Aug-22 -1.81%
MSCI - Nuclear Weapons as of 31-Aug-22 0.03%
MSCI - Thermal Coal as of 31-Aug-22 0.01%
MSCI - Civilian Firearms as of 31-Aug-22 0.00%
MSCI - Oil Sands as of 31-Aug-22 0.00%
MSCI - Tobacco as of 31-Aug-22 1.26%

Business Involvement Coverage as of 31-Aug-22 51.31%
Percentage of Fund not covered as of 31-Aug-22 49.89%
BlackRock business involvement exposures as shown above for Thermal Coal and Oil Sands are calculated and reported for companies that generate more than 5% of revenue from thermal coal or oil sands as defined by MSCI ESG Research. For the exposure to companies that generate any revenue from thermal coal or oil sands (at a 0% revenue threshold), as defined by MSCI ESG Research, it is as follows: Thermal Coal -0.81% and for Oil Sands 0.19%.

Business Involvement metrics are calculated by BlackRock using data from MSCI ESG Research which provides a profile of each company’s specific business involvement. BlackRock leverages this data 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. Business Involvement metrics are only displayed if at least 1% of the fund’s gross weight includes securities covered by MSCI ESG Research.

ESG Integration

ESG Integration

ESG integration is the practice of incorporating material environmental, social and governance (ESG) information or insights alongside traditional measures into the investment decision process to improve long term financial outcomes of portfolios. Unless otherwise stated in Fund documentation or included within the Fund’s investment objective, inclusion of this statement does not imply that the Fund has an ESG-aligned investment objective, but rather describes how ESG information is considered as part of the overall investment process.


The Fund manager includes ESG considerations in combination with other information in the research and due diligence phase of the investment process. ESG information may be sourced internally, via collaboration with the BlackRock Investment Stewardship team in engaging issuers on material environmental, social or governance topics, or from third-party providers. The Fund manager’s ongoing monitoring of the portfolio involves regular portfolio risk reviews with the Risk and Quantitative Analysis group. These reviews include discussion of the portfolio’s exposure to material ESG risks, as well as exposure to sustainability-related business involvements, climate-related metrics, and other factors.

Risk Indicator

Risk Indicator

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Low Risk High Risk
Typically low rewards Typically high rewards

Ratings

Ratings

Morningstar Rating

4 stars
Overall Morningstar Rating for BlackRock Global Absolute Return Bond Fund, Class I2, as of 31-Jul-22 rated against 1005 Global Flexible Bond - EUR Hedged Funds.

Holdings

Holdings

as of 31-Aug-22
Name Weight (%)
ISHARES CORPORATE BOND 0-5YR UCIT 5.39
ISH CORE EURO CORP BND ETF EUR DIS 1.37
GREECE REPUBLIC OF (GOVERNMENT) 0 02/12/2026 1.04
CREDIT SUISSE GROUP AG MTN RegS 2.125 10/13/2026 0.77
HFHL_20-2 B RegS 0.73
Name Weight (%)
CLMT_16-CLNE A 144A 0.73
UBS GROUP AG MTN 144A 4.988 08/05/2033 0.72
NATWEST GROUP PLC MTN RegS 3.622 08/14/2030 0.71
PIER_21-1 B RegS 0.68
OATH_2 A RegS 0.64
Holdings subject to change

Exposure Breakdowns

Exposure Breakdowns

as of 31-Aug-22

% of Market Value

Type Fund Benchmark Net
as of 31-Aug-22

% of Market Value

Type Fund Benchmark Net
as of 31-Aug-22

% of Market Value

Type Fund Benchmark Net
as of 31-Aug-22

% of Market Value

Type Fund Benchmark Net
as of 31-Aug-22

% 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

Pricing & Exchange

Investor Class Currency Distribution Frequency NAV NAV Amount Change NAV % Change NAV As Of 52wk High 52wk Low ISIN TIS
Class I2 EUR None 100.81 0.09 0.09 30-Sep-22 106.14 100.72 LU1129992563 -
Class D2 EUR None 103.88 0.09 0.09 30-Sep-22 109.60 103.79 LU0802639707 -
Class A2 EUR None 98.75 0.08 0.08 30-Sep-22 104.76 98.67 LU0783530669 -
Class I2 Hedged GBP - 102.52 0.11 0.11 30-Sep-22 106.73 102.41 LU1834329234 -
Class A2 Hedged SEK None 970.60 0.90 0.09 30-Sep-22 1,026.45 969.70 LU0884611699 -
Class D2 Hedged CHF None 95.57 0.09 0.09 30-Sep-22 101.98 95.48 LU1311313644 -
Class A2 Hedged USD None 109.57 0.10 0.09 30-Sep-22 114.35 109.47 LU0972010309 -
Class I2 Hedged SEK None 1,008.16 0.95 0.09 30-Sep-22 1,058.88 1,007.21 LU1129992647 -
Class D4 Hedged GBP - 94.60 0.10 0.11 30-Sep-22 99.38 94.50 LU2331123641 -

Portfolio Managers

Portfolio Managers

Simon Blundell

Managing Director, is Head of the Fundamental Sterling Team within BlackRock's Global Fixed Income (GFI) Group.

Joe Di Censo
Portfolio manager, BlackRock’s Global Fixed Income Group

     

Rekesh Varsani
Rekesh Varsani

Literature

Literature