Fixed Income

BlackRock Charities UK Bond Fund

  • Bid price as of 26-Jan-23 GBP 1.49
  • Offer price as of 26-Jan-23 GBP 1.50
  • Morningstar Rating

Overview

Investment Approach

The Fund aims to provide a return on your investment (net of fees) over a period of 5 or more consecutive years beginning at the point of investment, generated through an increase in the value of the assets held by the Fund and/or income received from those assets. The investment manager (IM) may use derivatives (i.e. investments the prices of which are based on one or more underlying assets) for investment purposes in order to seek to achieve the Fund’s investment objective and for efficient portfolio management purposes in order to reduce risk within the Fund, reduce investment costs, or to generate additional income for the Fund. Further investments may be used (including derivatives) to protect the value of the Fund, in whole or in part, from changes in currency exchange rates against its base currency.

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

Chart

Performance chart data not available for display.
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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. Source: BlackRock. Performance is based on closing bid prices for UK funds with net income reinvested.

Distributions

Record Date Ex-Date Payable Date
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Record Date Ex-Date Payable Date Total Distribution

This chart shows the fund's performance as the percentage loss or gain per year over the last 10 years. It can help you to assess how the fund has been managed in the past and compare it to its benchmark.

  2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Total Return (%) -3.1 12.7 1.1 8.3 2.7 -0.5 6.8 6.8 -3.7 -17.6
Constraint Benchmark 1 (%) -3.9 13.9 1.4 8.3 2.6 0.1 6.4 6.6 -3.4 -17.7
  1y 3y 5y 10y Incept.
Total Return (%)

as of 31-Dec-22

-17.58 -5.37 -2.08 1.00 -
Constraint Benchmark 1 (%)

as of 31-Dec-22

-17.69 -5.37 -2.04 1.07 -
  YTD 1m 3m 6m 1y 3y 5y 10y Incept.
Total Return (%)

as of 31-Dec-22

-17.58 -2.68 3.80 -7.27 -17.58 -15.26 -9.97 10.50 -
Constraint Benchmark 1 (%)

as of 31-Dec-22

-17.69 -2.37 3.38 -7.72 -17.69 -15.25 -9.79 11.19 -
  From
31-Dec-2017
To
31-Dec-2018		 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
Total Return (%)

as of 31-Dec-22

-0.55 6.84 6.79 -3.73 -17.58
Constraint Benchmark 1 (%)

as of 31-Dec-22

0.07 6.37 6.56 -3.38 -17.69
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 26-Jan-23 GBP 72,526,932
Share Class launch date 03-Dec-75
Fund Launch Date 24-Nov-87
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 -
Initial Charge 0.00%
Ongoing Charges Figures 0.39%
Annual Management Fee 0.35%
Performance Fee 0.00%
Minimum Initial Investment GBP 500.00
Minimum Subsequent Investment GBP 100.00
Distribution Frequency -
Use of Income Distributing
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 BRCUBAI
ISIN GB00BFBFWK23
SEDOL BFBFWK2

Portfolio Characteristics

Portfolio Characteristics

Number of Holdings as of 30-Dec-22 115
12m Trailing Yield as of 31-Dec-22 4.11
Standard Deviation (3y) as of 31-Dec-22 8.36%
3y Beta as of 31-Dec-22 1.047
Yield to Maturity as of 30-Dec-22 5.67
Modified Duration as of 30-Dec-22 7.08
Weighted Average YTM as of 30-Dec-22 5.72%
Effective Duration as of 30-Dec-22 6.86
Weighted Avg Maturity as of 30-Dec-22 8.12
WAL to Worst as of 30-Dec-22 8.12

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

3 stars
Overall Morningstar Rating for BlackRock Charities UK Bond Fund, Class A, as of 31-Dec-22 rated against 119 GBP Diversified Bond Funds.

Holdings

Holdings

as of 30-Dec-22
Name Weight (%)
UK CONV GILT 6 12/07/2028 6.02
UK CONV GILT 4.25 12/07/2049 3.37
BNP PARIBAS SA MTN RegS 3.375 01/23/2026 2.37
UK CONV GILT 4.5 12/07/2042 2.29
LLOYDS TSB BANK PLC MTN RegS 7.5 04/15/2024 2.26
Name Weight (%)
CREDIT AGRICOLE SA MTN RegS 7.375 12/18/2023 2.22
UK CONV GILT 4.25 12/07/2046 2.03
SCOTTISH WIDOWS LTD RegS 5.5 06/16/2023 2.00
ENEL FINANCE INTERNATIONAL SA MTN RegS 5.625 08/14/2024 1.97
EUROPEAN INVESTMENT BANK MTN RegS 0.875 05/15/2026 1.70
Holdings subject to change

Exposure Breakdowns

Exposure Breakdowns

as of 30-Dec-22

% of Market Value

Type Fund Benchmark Net
as of 30-Dec-22

% of Market Value

Type Fund Benchmark Net
as of 30-Dec-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 Bid Price Offer Price ISIN TIS
Class A GBP - 1.49 1.50 GB00BFBFWK23 -
Class A GBP - 45.17 45.30 GB00BFBFWL30 -

Portfolio Managers

Portfolio Managers

Simon Blundell
Simon Blundell

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

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Managing Director, is Head of the Fundamental Sterling team within BlackRock's Global Fixed Income (GFI) Group. Prior to joining BlackRock in 2011, Simon was Head of Institutional Credit Portfolio Management at Aviva Investors where he oversaw 9 billion in assets across Euro, Sterling, and Global credit and aggregate products. Prior to joining Aviva in 2009, Simon spent 10 years at ABN AMRO Asset Management (later acquired by Fortis Investments where he stayed on for a year), most recently as Head of Credit. He previously held positions at HSBC Asset Management and Morgan Grenfell Asset Management. He began his investment career in 1994.

Ben Edwards
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.

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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.

 

Prior to joining BlackRock in 2010, Mr. Edwards worked at Legal and General Investment Management from 2003 to 2009 where he was a portfolio manager, responsible for both institutional and retail sterling corporate bond portfolios. He began his career as an Analyst at M&G in 2002.

 

Mr. Edwards earned a Business degree from the Queensland University of Technology (Aust.) in 2000 and post-graduate qualifications in Finance from the Financial Services Institute of Australia in 2002. He is a CFA charterholder.

David Curtin
David Curtin

Literature

Literature