Fixed Income

BlackRock Sustainable Sterling Strategic 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.

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 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 may make distributions from capital as well as income or pursue certain investment strategies in order to generate income. Whilst this might allow more income to be distributed, it may also have the effect of reducing capital and the potential for long-term capital growth. Investors in this Fund should understand that capital growth is not a priority and values may fluctuate and the level of income may vary from time to time and is not guaranteed. The Fund utilizes derivatives as part of its investment strategy. Compared to a fund which only invests in traditional instruments such as stocks and bonds, derivatives are potentially subject to a higher level of risk and volatility. The strategies utilized 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 Fund. The use of covered call options in the fund will usually provide some limited protection to investors when stockmarkets are falling, but may also result in a lower return in a rising market, when compared to the benchmark The fund invests in a limited number of market sectors. Compared to investments which spread investment risk through investing in a variety of sectors, share price movements may have a greater effect on the overall value of this fund. The fund may invest in smaller company shares which can be more unpredictable and less liquid than those of larger company shares. 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 fund can invest in mining shares which typically experience above average volatility when compared to other investments. Trends which occur within the general equity market may not be mirrored within mining securities. Optional - The Fund does not hold physical gold or other commodities.

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

Chart

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This chart shows the fund's performance as the percentage loss or gain per year over the last 7 years.

  2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Total Return (%) 6.7 -1.8 8.3 7.2 0.6 -9.7 11.3
Target Benchmark 1 (%) 9.4

Performance is shown after deduction of ongoing charges. Any entry and exit charges are excluded from the calculation.

  1y 3y 5y 10y Incept.
10.44 0.21 2.16 - 3.51
Target Benchmark 1 (%) 10.06 - - - -
  YTD 1m 3m 6m 1y 3y 5y 10y Incept.
0.32 1.80 -0.07 0.32 10.44 0.64 11.29 - 32.32
Target Benchmark 1 (%) 4.89 0.79 2.42 4.89 10.06 - - - -
  From
30-Jun-2019
To
30-Jun-2020
From
30-Jun-2020
To
30-Jun-2021
From
30-Jun-2021
To
30-Jun-2022
From
30-Jun-2022
To
30-Jun-2023
From
30-Jun-2023
To
30-Jun-2024
Total Return (%)

as of 30/Jun/2024

2.88 7.49 -12.82 4.52 10.44
Target Benchmark 1 (%)

as of 30/Jun/2024

- - - 7.77 10.06

The figures shown relate to past performance. Past performance is not a reliable indicator of future performance. Markets could develop very differently in the future. It can help you to assess how the fund has been managed in the past

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

Key Facts

Key Facts

Net Assets of Fund
as of 12/Jul/2024
GBP 100,059,430
Fund Launch Date
17/May/2016
Fund Base Currency
GBP
Target Benchmark 1
3 Month SONIA ARR compounded in arrears + 450 bps
Initial Charge
0.00%
ISIN
GB00BZ6DDZ33
Performance Fee
0.00%
Minimum Subsequent Investment
-
Domicile
United Kingdom
Management Company
BlackRock Fund Managers Ltd
Dealing Settlement
Trade Date + 3 days
Bloomberg Ticker
BRSSBZA LN
Ongoing Charges Figure ex. Discount
0.35%
Share Class launch date
17/May/2016
Share Class Currency
GBP
Asset Class
Fixed Income
Investment Association Category
£ Strategic Bond
Ongoing Charges Figures
0.35%
Annual Management Fee
0.30%
Minimum Initial Investment
-
Use of Income
Accumulating
Regulatory Structure
UCITS
Morningstar Category
GBP Flexible Bond
Dealing Frequency
Daily, forward pricing basis
SEDOL
BZ6DDZ3
The Ongoing Charge may be discounted depending on the size of the fund.

Portfolio Characteristics

Portfolio Characteristics

Number of Holdings
as of 28/Jun/2024
68
3y Beta
as of -
-
Modified Duration
as of 28/Jun/2024
6.15
Effective Duration
as of 28/Jun/2024
6.16
WAL to Worst
as of 28/Jun/2024
6.29
Standard Deviation (3y)
as of 30/Jun/2024
10.64%
Yield to Maturity
as of 28/Jun/2024
4.59
Weighted Average YTM
as of 28/Jun/2024
4.51%
Weighted Avg Maturity
as of 28/Jun/2024
6.29

ESG Integration

ESG Integration

ESG integration is the practice of incorporating financially material environmental, social and governance (ESG) data or information into the investment decision process with the objective of enhancing risk-adjusted returns of our clients’ 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 or strategy, but rather describes how ESG data or information is considered as part of the overall investment process.

The Fund manager includes ESG considerations in combination with other information in the research phase of the investment process. This may include relevant third-party insights, as well as internal engagement commentary and input from BlackRock Investment Stewardship on governance issues. The Fund manager conducts regular portfolio reviews with the Risk and Quantitative Analysis group and with the Chief Investment Officers. These reviews include discussion, where appropriate, 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

1
2
3
4
5
6
7
Low Risk High Risk
Typically low rewards Typically high rewards

Ratings

Ratings

Morningstar Rating

4 stars
Overall Morningstar Rating for BlackRock Sustainable Sterling Strategic Bond Fund, Class Z, as of 31/Jan/2023 rated against 70 GBP Flexible Bond Funds.

Morningstar Medalist Rating

Morningstar Medalist Rating - SILVER
Morningstar has awarded the Fund a Silver medal. (Effective 31/Dec/2023)

Holdings

Holdings

as of 28/Jun/2024
Name Weight (%)
LEGAL & GENERAL GROUP PLC RegS 5.125 11/14/2048 3.09
COOPERATIEVE CENTRALE RAIFFEISEN-B MTN RegS 4.625 05/23/2029 3.04
BANCO SANTANDER SA MTN RegS 4.75 08/30/2028 2.99
TIME WARNER CABLE LLC 5.75 06/02/2031 2.98
HSBC HOLDINGS PLC 6.8 09/14/2031 2.76
Name Weight (%)
ELECTRICITE DE FRANCE SA MTN RegS 5.875 12/31/2079 2.74
YORKSHIRE WATER FINANCE PLC MTN RegS 5.25 04/28/2030 2.61
UBS GROUP AG MTN RegS 7.75 03/01/2029 2.55
EON INTERNATIONAL FINANCE BV MTN RegS 6.25 06/03/2030 2.55
BARCLAYS PLC RegS 7.09 11/06/2029 2.48
Holdings subject to change

Exposure Breakdowns

Exposure Breakdowns

as of 28/Jun/2024

% of Market Value

Type Fund Benchmark Net
as of 28/Jun/2024

% of Market Value

Type Fund Benchmark Net
as of 28/Jun/2024

% 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 Bid Price Offer Price ISIN
Class Z GBP 1.32 1.33 GB00BZ6DDZ33
Class A GBP 1.25 1.26 GB00BZ6DDG44
Class X GBP 1.08 1.08 GB00BZ6DDQ42
Class Z GBP 1.08 1.08 GB00BZ6DF359
Class D GBP 1.08 1.08 GB00BZ6DDM04
Class A GBP 1.08 1.08 GB00BZ6DDH50
Class S GBP 0.98 0.98 GB00BFK3LW26
Class D GBP 1.31 1.31 GB00BZ6DDJ74
Class X GBP 1.37 1.37 GB00BZ6DDP35

Portfolio Managers

Portfolio Managers

Simon Blundell

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

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