Fixed Income

BlackRock Global Absolute Return 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.

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. The fund invests in fixed interest securities issued by companies which, compared to bonds issued or guaranteed by governments, are exposed to greater risk of default in the repayment of the capital provided to the company or interest payments due to the fund. 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. 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. Compared to more established economies, the value of investments in developing Emerging Markets may be subject to greater volatility due to differences in generally accepted accounting principles or from economic or political instability. The strategies utilised by the Fund involve the use of derivatives to facilitate certain investment management techniques including the establishment of both 'long' and 'synthetic short' positions and creation of market leverage for the purposes of increasing the economic exposure of a Fund beyond the value of its net assets. The use of derivatives in this manner may have the effect of increasing the overall risk profile of the Funds. Investors in this fund should understand that the Fund is not guaranteed to produce a positive return and as an absolute return product, performance may not move in line with general stock market trends as both positive and negative share movements affect the overall value of the fund. The Manager employs a risk management process to oversee and manage derivative exposure within the Fund. 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. Investors in this Fund should understand that the Fund is not guaranteed to produce a positive return and as an absolute return product, performance may not move in line with general market trends or fully benefit from a positive market environment. The Manager employs a risk management process to oversee and manage derivative exposure within the Fund. The Fund will attempt to reduce (or 'hedge') the risk of currency movements between the Base Currency and the currency in which some or all of the underlying investments are transacted. It should be noted that the hedging strategy employed will not completely eliminate the exposure of the Fund to movements between the Base Currency and these other currencies. The hedging strategies may be entered into whether the Base Currency is declining or increasing in value compared to the currency of the underlying investments. This may have a positive or negative impact on the performance of the Fund.

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

To the extent the Fund undertakes securities lending to reduce costs, the Fund will receive 62.5% of the associated revenue generated and the remaining 37.5% will be received by BlackRock as the securities lending agent. As securities lending revenue sharing does not increase the costs of running the Fund, this has been excluded from the ongoing charges.

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Performance

Performance

Chart

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Reinvestments

This product does not have any distributions data as of now.

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 (%) -0.5 0.3 0.1 1.0 -3.7 1.3 2.7 -2.1 -1.7 -2.3
Comparator Benchmark 1 (%) 0.3 0.0 -0.2 -0.3 -0.3 -0.3 -0.4 -0.5 -0.3 3.1

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

  1y 3y 5y 10y Incept.
2.73 -1.88 -0.27 -0.45 -0.02
Comparator Benchmark 1 (%) 3.87 1.35 0.64 0.24 0.25
  YTD 1m 3m 6m 1y 3y 5y 10y Incept.
1.23 0.55 0.57 2.69 2.73 -5.53 -1.34 -4.40 -0.21
Comparator Benchmark 1 (%) 1.67 0.34 1.02 2.03 3.87 4.11 3.24 2.38 3.05
  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

-4.93 9.37 -4.10 -2.26 0.75
Comparator Benchmark 1 (%)

as of 31/Mar/2024

-0.37 -0.42 -0.57 0.27 3.64

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 EUR, hedged share class benchmark performance is displayed in EUR.

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 12/Jun/2024
EUR 52,204,896
Fund Launch Date
25/May/2012
Fund Base Currency
EUR
Comparator Benchmark 1
3 Month Euribor Index
Initial Charge
5.00%
ISIN
LU0783530669
Performance Fee
0.00%
Minimum Subsequent Investment
EUR 1,000.00
Domicile
Luxembourg
Management Company
BlackRock (Luxembourg) S.A.
Dealing Settlement
Trade Date + 3 days
Bloomberg Ticker
BRGARA2
Share Class launch date
25/May/2012
Share Class Currency
EUR
Asset Class
Fixed Income
SFDR Classification
Other
Ongoing Charges Figures
1.33%
Annual Management Fee
1.00%
Minimum Initial Investment
EUR 5,000.00
Use of Income
Accumulating
Regulatory Structure
UCITS
Morningstar Category
Global Flexible Bond - EUR Hedged
Dealing Frequency
Daily, forward pricing basis
SEDOL
B4MWFM8

Portfolio Characteristics

Portfolio Characteristics

Number of Holdings
as of 31/May/2024
234
3y Beta
as of 31/May/2024
1.407
Modified Duration
as of 31/May/2024
1.85
Effective Duration
as of 31/May/2024
1.62
WAL to Worst
as of 31/May/2024
4.32
Standard Deviation (3y)
as of 31/May/2024
3.85%
Yield to Maturity
as of 31/May/2024
5.46
Weighted Average YTM
as of 31/May/2024
5.30%
Weighted Avg Maturity
as of 31/May/2024
4.32

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

3 stars
Overall Morningstar Rating for BlackRock Global Absolute Return Bond Fund, Class A2, as of 31/May/2024 rated against 1080 Global Flexible Bond - EUR Hedged Funds.

Holdings

Holdings

as of 31/May/2024
Name Weight (%)
BSF EM FLEXI DYNAMIC BD FD X2 USD 4.76
ISHARES CORPORATE BOND 0-5YR UCIT 4.32
UMBS 30YR TBA(REG A) 2.22
PIER_21-1 B RegS 1.94
HOPSH_2 A RegS 1.66
Name Weight (%)
BANQUE FEDERATIVE DU CREDIT MUTUEL MTN RegS 4.578 03/05/2027 1.25
MORGAN STANLEY 4.585 03/19/2027 1.24
GNKGO_23-PL1 A1 RegS 1.24
DELAM_23-2 A1 RegS 1.22
EAST1_24-1 A RegS 1.21
Holdings subject to change

Exposure Breakdowns

Exposure Breakdowns

as of 31/May/2024

% of Market Value

Type Fund Benchmark Net
as of 31/May/2024

% of Market Value

Type Fund Benchmark Net
as of 31/May/2024

% of Market Value

Type Fund Benchmark Net
as of 31/May/2024

% of Market Value

Type Fund Benchmark Net
as of 31/May/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 NAV NAV Amount Change NAV % Change NAV As Of 52wk High 52wk Low ISIN
Class A2 EUR 100.01 0.07 0.07 12/Jun/2024 100.03 93.70 LU0783530669
Class I2 Hedged SEK 1,031.60 0.72 0.07 12/Jun/2024 1,031.73 962.20 LU1129992647
Class D2 Hedged CHF 93.60 0.04 0.04 12/Jun/2024 93.94 89.01 LU1311313644
Class I2 EUR 103.29 0.07 0.07 12/Jun/2024 103.30 96.16 LU1129992563
Class A2 Hedged SEK 981.71 0.68 0.07 12/Jun/2024 982.03 921.37 LU0884611699
Class I2 Hedged GBP 107.46 0.09 0.08 12/Jun/2024 107.46 98.92 LU1834329234
Class A2 Hedged USD 115.09 0.09 0.08 12/Jun/2024 115.09 106.10 LU0972010309
Class D4 Hedged GBP 92.71 0.07 0.08 12/Jun/2024 95.99 88.62 LU2331123641
Class D2 EUR 106.10 0.07 0.07 12/Jun/2024 106.11 98.94 LU0802639707

Portfolio Managers

Portfolio Managers

Simon Blundell

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

Joe Di Censo
Portfolio manager, BlackRock’s Global Fixed Income Group

     

Rekesh Varsani
Rekesh Varsani
Leopold Lansing
Leopold Lansing

Literature

Literature