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 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

Loading

Performance

Performance

Chart

Performance chart data not available for display.
View full chart

Distributions

Ex-Date Total Distribution
View full table

This chart shows the fund's performance as the percentage loss or gain per year over the last 4 years.

  2019 2020 2021 2022 2023
Total Return (%) 8.0 0.5 -9.8 11.1
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.
7.30 0.56 - - 2.39
Target Benchmark 1 (%) 9.83 - - - -
  YTD 1m 3m 6m 1y 3y 5y 10y Incept.
0.35 2.18 0.35 7.80 7.30 1.69 - - 11.84
Target Benchmark 1 (%) 2.42 0.82 2.42 4.92 9.83 - - - -
  From
31-Mar-2019
To
31-Mar-2020
From
31-Mar-2020
To
31-Mar-2021
From
31-Mar-2021
To
31-Mar-2022
From
31-Mar-2022
To
31-Mar-2023
From
31-Mar-2023
To
31-Mar-2024
Total Return (%)

as of 31/Mar/2024

- 18.16 -1.84 -3.45 7.30
Target Benchmark 1 (%)

as of 31/Mar/2024

- - - - 9.83

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 11/Apr/2024 GBP 103,324,270
Share Class launch date 02/Jul/2019
Fund Launch Date 17/May/2016
Share Class Currency GBP
Fund Base Currency GBP
Asset Class Fixed Income
Target Benchmark 1 3 Month SONIA ARR compounded in arrears + 450 bps
Investment Association Category £ Strategic Bond
Initial Charge 5.00%
Ongoing Charges Figures 0.54%
ISIN GB00BFK3LW26
Annual Management Fee 0.45%
Performance Fee 0.00%
Minimum Initial Investment GBP 50,000,000.00
Minimum Subsequent Investment GBP 100.00
Use of Income Distributing
Domicile United Kingdom
Regulatory Structure UCITS
Management Company BlackRock Fund Managers Ltd
Morningstar Category GBP Flexible Bond
Dealing Settlement Trade Date + 3 days
Dealing Frequency Daily, forward pricing basis
Bloomberg Ticker BLSSBSG
SEDOL BFK3LW2
Ongoing Charges Figure ex. Discount 0.54%
The Ongoing Charge may be discounted depending on the size of the fund.

Portfolio Characteristics

Portfolio Characteristics

Number of Holdings as of 28/Mar/2024 70
12 Month Trailing Dividend Distribution Yield as of 31/Mar/2024 3.93
Standard Deviation (3y) as of 31/Mar/2024 10.51%
3y Beta as of - -
Yield to Maturity as of 28/Mar/2024 4.27
Modified Duration as of 28/Mar/2024 5.82
Weighted Average YTM as of 28/Mar/2024 4.20%
Effective Duration as of 28/Mar/2024 5.79
Weighted Avg Maturity as of 28/Mar/2024 5.56
WAL to Worst as of 28/Mar/2024 5.56

Sustainability Characteristics

Sustainability Characteristics

Sustainability Characteristics provide investors with specific non-traditional metrics. Alongside other metrics and information, these enable investors to evaluate funds on certain environmental, social and governance characteristics. Sustainability Characteristics do not provide an indication of current or future performance nor do they represent the potential risk and reward profile of a fund. They are provided for transparency and for information purposes only. Sustainability Characteristics should not be considered solely or in isolation, but instead are one type of information that investors may wish to consider when assessing a fund.


The metrics are not indicative of how or whether ESG factors will be integrated into a fund. Unless otherwise stated in fund documentation and included within a fund’s investment objective, the metrics 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 methodologies behind Sustainability Characteristics using the links below.

MSCI ESG Fund Rating (AAA-CCC) as of 21/Mar/2024 AA
MSCI ESG % Coverage as of 21/Mar/2024 94.25
MSCI ESG Quality Score (0-10) as of 21/Mar/2024 7.29
MSCI ESG Quality Score - Peer Percentile as of 21/Mar/2024 89.71
Fund Lipper Global Classification as of 21/Mar/2024 Bond Global GBP
Funds in Peer Group as of 21/Mar/2024 311
MSCI Weighted Average Carbon Intensity (Tons CO2E/$M SALES) as of 21/Mar/2024 63.36
MSCI Weighted Average Carbon Intensity % Coverage as of 21/Mar/2024 82.09
All data is from MSCI ESG Fund Ratings as of 21/Mar/2024, based on holdings as of 31/Aug/2023. As such, the fund’s sustainable characteristics may differ from MSCI ESG Fund Ratings from time to time.

To be included in MSCI ESG Fund Ratings, 65% (or 50% for bond funds and money market funds) 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.

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 28/Mar/2024 0.00%
MSCI - UN Global Compact Violators as of 28/Mar/2024 0.00%
MSCI - Nuclear Weapons as of 28/Mar/2024 0.00%
MSCI - Thermal Coal as of 28/Mar/2024 0.00%
MSCI - Civilian Firearms as of 28/Mar/2024 0.00%
MSCI - Oil Sands as of 28/Mar/2024 0.00%
MSCI - Tobacco as of 28/Mar/2024 0.00%

Business Involvement Coverage as of 28/Mar/2024 84.59%
Percentage of Fund not covered as of 28/Mar/2024 15.41%
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 0.00% and for Oil Sands 2.28%.

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 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 S, as of 31/Jan/2023 rated against 70 GBP Flexible 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 28/Mar/2024
Name Weight (%)
UNITED KINGDOM OF GREAT BRITAIN AN 4.5 06/07/2028 4.78
LEGAL & GENERAL GROUP PLC RegS 5.125 11/14/2048 2.96
COOPERATIEVE CENTRALE RAIFFEISEN-B MTN RegS 4.625 05/23/2029 2.96
TIME WARNER CABLE LLC 5.75 06/02/2031 2.96
BANCO SANTANDER SA MTN RegS 4.75 08/30/2028 2.77
Name Weight (%)
YORKSHIRE WATER FINANCE PLC MTN RegS 5.25 04/28/2030 2.65
HSBC HOLDINGS PLC 6.8 09/14/2031 2.57
EON INTERNATIONAL FINANCE BV MTN RegS 6.25 06/03/2030 2.54
ELECTRICITE DE FRANCE SA MTN RegS 5.875 12/31/2079 2.51
BARCLAYS PLC RegS 7.09 11/06/2029 2.31
Holdings subject to change

Exposure Breakdowns

Exposure Breakdowns

as of 28/Mar/2024

% of Market Value

Type Fund Benchmark Net
as of 28/Mar/2024

% of Market Value

Type Fund Benchmark Net
as of 28/Mar/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 S GBP 0.95 0.95 GB00BFK3LW26
Class A GBP 1.22 1.23 GB00BZ6DDG44
Class D GBP 1.05 1.05 GB00BZ6DDM04
Class X GBP 1.33 1.34 GB00BZ6DDP35
Class D GBP 1.27 1.28 GB00BZ6DDJ74
Class X GBP 1.05 1.06 GB00BZ6DDQ42
Class Z GBP 1.05 1.05 GB00BZ6DF359
Class Z GBP 1.29 1.30 GB00BZ6DDZ33
Class A GBP 1.05 1.06 GB00BZ6DDH50

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