Fixed Income

BlackRock Charities UK 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.

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 uses 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. 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. The insolvency of any institutions providing services such as safekeeping of assets or acting as counterparty to derivatives or other instruments, may expose the Fund to financial loss.
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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 10 years.

  2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Total Return (%) 12.6 1.1 8.3 2.7 -0.6 6.8 6.8 -3.7 -17.6 6.0
Constraint Benchmark 1 (%) 13.9 1.4 8.3 2.6 0.1 6.4 6.6 -3.4 -17.7 5.8

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

  1y 3y 5y 10y Incept.
1.10 -5.81 -1.38 1.53 -
Constraint Benchmark 1 (%) 1.80 -5.67 -1.36 1.72 -
  YTD 1m 3m 6m 1y 3y 5y 10y Incept.
-1.67 -1.67 4.96 5.22 1.10 -16.45 -6.72 16.44 -
Constraint Benchmark 1 (%) -1.24 -1.24 5.46 5.35 1.80 -16.07 -6.63 18.64 -
  From
31-Dec-2018
To
31-Dec-2019
From
31-Dec-2019
To
31-Dec-2020
From
31-Dec-2020
To
31-Dec-2021
From
31-Dec-2021
To
31-Dec-2022
From
31-Dec-2022
To
31-Dec-2023
Total Return (%)

as of 31/Dec/2023

6.78 6.80 -3.69 -17.58 6.02
Constraint Benchmark 1 (%)

as of 31/Dec/2023

6.37 6.56 -3.38 -17.69 5.82
Previously, the performance history as at 31 October 2022 was quoted on the basis of closing prices. The full performance history is now shown based on dealing prices.
The figures shown relate to past performance. Past performance is not a reliable indicator of future results and should not be the sole factor of consideration when selecting a product.

The Fund was previously structured as Common Investment Fund (‘CIF’). On 06 12 2019, the CIF closed and the assets were transferred to a Charity Authorised Investment Fund (‘CAIF’). The CAIF is being run with the same investment objective and policy. Please note that the historical performance shown before 06 12 2019 is indicative and is provided when the fund was run as a CIF.

Unit Class and Benchmark performance displayed in GBP, hedged Unit 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 27/Feb/2024 GBP 46,498,965
Share Class launch date 03/Dec/1975
Fund Launch Date 24/Nov/1987
Share Class Currency GBP
Fund Base Currency GBP
Asset Class Fixed Income
Constraint Benchmark 1 50% All Stocks Gilt (gov bonds) / 50% iBoxx Sterling Non-Gilt 1-10 Yr
Investment Association Category £ Strategic Bond
Initial Charge 0.00%
Ongoing Charges Figures 0.40%
ISIN GB00BFBFWL30
Annual Management Fee 0.35%
Performance Fee 0.00%
Minimum Initial Investment GBP 500.00
Minimum Subsequent Investment GBP 100.00
Use of Income Accumulating
Domicile United Kingdom
Regulatory Structure PRIIPs KID Required
Management Company BlackRock Fund Managers Ltd
Morningstar Category GBP Diversified Bond
Dealing Settlement Trade Date + 3 days
Dealing Frequency Daily, forward pricing basis
Bloomberg Ticker BRCUBAG
SEDOL BFBFWL3
Ongoing Charges Figure ex. Discount 0.40%
The Ongoing Charge may be discounted depending on the size of the fund.

Portfolio Characteristics

Portfolio Characteristics

Number of Holdings as of 31/Jan/2024 116
Standard Deviation (3y) as of 31/Jan/2024 8.95%
3y Beta as of 31/Jan/2024 1.043
Yield to Maturity as of 31/Jan/2024 4.69
Modified Duration as of 31/Jan/2024 6.13
Weighted Average YTM as of 31/Jan/2024 4.71%
Effective Duration as of 31/Jan/2024 6.12
Weighted Avg Maturity as of 31/Jan/2024 7.57
WAL to Worst as of 31/Jan/2024 7.57

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
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3
4
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7
Low Risk High Risk
Typically low rewards Typically high rewards

Ratings

Ratings

Morningstar Rating

3 stars
Overall Morningstar Rating for BlackRock Charities UK Bond Fund, Class A, as of 31/Jan/2023 rated against 114 GBP Diversified Bond Funds.

Morningstar Medalist Rating

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

Holdings

Holdings

as of 31/Jan/2024
Name Weight (%)
UK CONV GILT 6 12/07/2028 4.88
UK CONV GILT 1.25 07/22/2027 3.82
UK CONV GILT 4.25 12/07/2049 3.40
LLOYDS TSB BANK PLC MTN RegS 7.5 04/15/2024 2.27
JPMORGAN CHASE & CO MTN RegS 0.991 04/28/2026 2.20
Name Weight (%)
HSBC HOLDINGS PLC MTN RegS 6.5 05/20/2024 2.00
ANHEUSER-BUSCH INBEV NV MTN RegS 9.75 07/30/2024 1.99
UK CONV GILT 4.25 12/07/2055 1.87
BNP PARIBAS SA MTN RegS 3.375 01/23/2026 1.86
GOLDMAN SACHS GROUP INC 7.125 08/07/2025 1.84
Holdings subject to change

Exposure Breakdowns

Exposure Breakdowns

as of 31/Jan/2024

% of Market Value

Type Fund Benchmark Net
as of 31/Jan/2024

% of Market Value

Type Fund Benchmark Net
as of 31/Jan/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 Distribution Frequency Bid Price Offer Price ISIN
Class A GBP - 45.28 45.37 GB00BFBFWL30
Class A GBP Quarterly 1.44 1.44 GB00BFBFWK23

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.

David Curtin
David Curtin

Literature

Literature