A sub fund of BlackRock Fund Manager Funds (BFM)

BlackRock Corporate Bond Fund

Capital at risk. All financial investments involve an element of risk. Therefore, the value of the investment and the income from it will vary and the initial investment amount cannot be guaranteed.

 


Income distribution is 2.8% as at end March 2019.

5.5%

Annualised returns over a five-year period net of fees

2.8%

Income distribution yield

14

Years' portfolio manager experience

5.5%

Annualised returns over a five-year period net of fees

2.8%

Income distribution yield

14

Years' portfolio manager experience

Source: Morningstar, as at 31 March 2019

Fund Ratings


Overall Morningstar
Rating


Overall Morningstar Rating

Morningstar
Analyst Rating


Morningstar Silver Rating

Rayner Spencer 
Mills Rated Fund


 RSMR rated fund

 The advisor center rated

   Crown Fund Rating

   Citywire AA

Investment Week Fund Manager of the Year 2017 Winner Corporate bond

Elite Fund rated by FundCalibre.com

Ratings: FE Crown Fund rating, Feb 2019; The Adviser Centre Ratings, fund, Feb 2019; Citywire, fund manager, Feb 2019; Morningstar, fund, June 2018; Morningstar awards, fund, Mar 2019; Elite Rated, fund, Feb 2019; RSMR, fund, Feb 2019.

Key Features

Diversified alpha for sterling credit


Diversified alpha for sterling credit

The Fund’s high conviction investment approach combines a core allocation to sterling credit with the flexibility to make tactical allocations to euro and US dollar denominated bonds. Paired with the ability to flexibly managed duration, this Fund provides investors with an active alpha seeking sterling strategy to help manage their sterling denominated fixed income allocation during uncertain market environments. 

RISK: Diversification and asset allocation may not fully protect investors from market risk.

Expert investment team


Expert investment team

The Fund is managed by Ben Edwards who has over 14 years of experience in managing sterling corporate bonds. He draws on the views of 60+ dedicated credit research analysts, who are experts on corporate issuers across the US, Europe and Asia. The Fund also benefits from BlackRock’s global fixed income platform, comprised of over 500 fixed income investment professionals across 8 global investment centres.

Security selection with risk management


Security selection with risk management

The independent risk management team, best-in-class risk systems and proprietary analytics help provide the investment team with a comprehensive understanding of risk. Our security selection capabilities are underpinned by the insights provided by BlackRock’s renowned risk management systems. We retain a preference for alpha versus beta (generic market returns). We continue to selectively add risk at attractive entry levels on the back of idiosyncratic risks and new issues, while aiming to taking advantage of the ‘sweet-spot’ of BB and BBB in credit markets to generate high quality income and efficient allocations.

Top quartile performance and attractive income


Top quartile performance and
attractive income

The Corporate Bond Fund has generated top quartile performance over 1, 2, 3, 4 and 5 years.1 The Fund has also distributed an income of 2.8% as at end of March 2019 (annualised income distribution yield for D Income unit).

RISK: Past performance is not a guide to current or future performance. The value of investments and the income from them can fall as well as rise and is not guaranteed.

1Source: Morningstar as at 31 March 2019.

BlackRock Corporate Bond Fund Discrete Performance versus IA £ Corporate Bond Sector

Corporate Bond Chart

RISK: Past performance is not a guide to current or future performance. The value of investments and the income from them can fall as well as rise and is not guaranteed.

SOURCE: MorningStar and FE TrustNet at end December 2018. YTD 2019 performance figures until end March 2019. Performance in GBP and calculated on a bid to bid price basis, income reinvested, net of fees for a representative investment in the D share class accumulating.

Risks

Capital at risk. All financial investments involve an element of risk. Therefore, the value of the investment and the income from it will vary and the initial investment amount cannot be guaranteed. You may not get back the amount originally invested. Changes in the rates of exchange between currencies may cause the value of investments to diminish or increase. Fluctuation may be particularly marked in the case of a higher volatility fund and the value of an investment may fall suddenly and substantially. Levels and basis of taxation may change from time to time.

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.

Fund-specific risks

Exchange rate risk: 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.

Charges from capital: Some or all of the Manager’s annual charge for the Fund is taken from capital rather than from income. Whilst this increases the yield, it reduces the potential for capital growth.

High yield bond: 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.

Liquidity risk: 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.

Interest rate risk: 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.

MKTGH0519E-853669