A sub fund of BlackRock Fund Manager Funds (BFM)

BlackRock Sterling Strategic 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 2.3% as at end March 2019.

5.33%

Annualised returns since inception (net of fees).

2.30%

Income distribution yield

34

Years' portfolio manager experience

5.33%

Annualised returns since inception (net of fees).

2.30%

Income distribution yield

34

Years' portfolio manager experience

Source: Morningstar, as at 31 March 2019

Key Features

A flexible diversified approach to fixed income

A flexible diversified approach to
fixed income

The BlackRock Sterling Strategic Bond Fund seeks to enhance investors’ income by gaining access to what we believe are the best opportunities in global fixed income markets. The Fund has core holdings in sterling-denominated corporate bonds, but will have the flexibility to source income from across the entire fixed income universe, including strategic allocations to emerging markets and high yield

Unconstrained income generation


Unconstrained income generation

A total return-oriented bond fund that seeks to distribute attractive levels of income. The Fund Manager is free of any benchmark constraints and has the flexibility to manage the portfolio in different market conditions.

RISK: Two main risks related to fixed income investing are interest rate risk and credit risk.

Managed by an experienced team with a proven track record

Managed by an experienced team with a proven track record

The Fund is managed by Simon Blundell and Ben Edwards with 34 years of collective experience, backed by the sterling fixed income team and benefiting from BlackRock’s global credit research platform. Ben Edwards also manages BlackRock’s Sterling Corporate Bond Fund, which has achieved top quartile performance in the IA Corporate Bond Sector over 1, 2, 3, 4 and 5 years.

Top quartile performance since launch


Top quartile performance since launch

Since launch, the Fund has achieved top quartile performance in the IA Sterling Strategic Bond Sector. The Fund has also distributed an annualised income of 2.30%, as at end of March 2019 (annualised income distribution yield for D Income unit). Fund inception date 18 May 2016.

BlackRock Sterling Strategic Bond Fund Discrete Performance versus IA £ Strategic Bond Sector Median

Strategic Bond Chart

                     2018                          2017                            2016*                   Since inception                                                                                                                                            – 18/05/16

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.

*Partial return for 2016 since the launch of the Sterling Strategic Bond Fund in May 2016. MorningStar and FE TrustNet at end April 2019. Performance calculated on a bid to bid price basis, income reinvested, net of fees in GBP for a representative investment in the D share class accumulating. FE Risk Scores measure weekly volatility, relative to the FTSE100, over three years. Recent behaviour counting more heavily than earlier behaviour. As at 13th May 2019 the BFM Sterling Strategic Bond Fund scored 18/100 and ranked 59/81 funds, with the 81st fund having the lowest risk score. Source for right chart: BlackRock, Bloomberg. Cumulative returns of primary share class (D share class accumulating), bid-to-bid net of fees to end April 2019.

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

Fixed income risk: 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.

Credit risk: The Fund invests in fixed interest securities issued by companies. There is a risk of default where the issuing company may not pay income or repay capital to the Fund when due.

Liquidity 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.

Financial markets, counterparties and service providers risk: 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.

Derivative risk: 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.

MKTGH0519E-853669