Fixed Income

BlackRock Absolute Return Bond Fund

Overview

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

The value of your investment and the income from it will vary and your initial investment amount is not guaranteed.


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 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.

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

The Fund uses derivatives as part of its investment strategy including the establishment of both ‘long’ and ‘synthetic short’ positions and the creation of market leverage for the purposes of increasing the economic exposure of a Fund beyond the value of its net assets. The Manager employs a risk management process to oversee and manage derivative exposure within the Fund. However, the use of derivatives in this manner may have the effect of increasing the overall risk profile of the Fund. Investors 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.
Show Fewer
Loading

Performance

Performance

  • Returns

  From
31-Mar-2015
To
31-Mar-2016
From
31-Mar-2016
To
31-Mar-2017
From
31-Mar-2017
To
31-Mar-2018
From
31-Mar-2018
To
31-Mar-2019
From
31-Mar-2019
To
31-Mar-2020
Total Return (%) Total return represents changes to the NAV and accounts for distributions from the fund.

as of 31-Mar-20

-0.76 2.00 1.77 -0.82 -4.16
Benchmark (%) Index: LIBOR 3 Month Index<br /><br /> Index returns are for illustrative purposes only. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results.

as of 31-Mar-20

0.58 0.44 0.40 0.80 0.76

The figures shown relate to past performance. 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.

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

Chart

Performance chart data not available for display.
View full chart

Reinvestments

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

Key Facts

Key Facts

Size of Fund (Millions) as of 08-Apr-20 GBP 2,690.115
Price Yield as of 06-Feb-18 1.44
Base Currency British Pound
Fund Launch Date 30-Sep-11
Share Class launch date 30-Sep-11
Asset Class Fixed Income
Benchmark Index LIBOR 3 Month Index
Investment Association Category -
Domicile United Kingdom
Regulatory Structure UCITS
Management Company BlackRock Fund Managers Ltd
ISIN GB00B5LVV365
Bloomberg Ticker BRARBPA
Initial Charge 5.00%
Performance Fee 0.00%
SEDOL B5LVV36
Bloomberg Benchmark Ticker 3MSTLLIBOR
Dealing Settlement Trade Date + 3 days
Dealing Frequency Daily, forward pricing basis
Minimum Initial Investment GBP 500
Minimum Subsequent Investment GBP 100
Use of Income Accumulating

Portfolio Characteristics

Portfolio Characteristics

Modified Duration as of 31-Mar-20 1.59
3y Volatility - Benchmark as of 31-Mar-20 0.06
5y Volatility - Benchmark as of 31-Mar-20 0.05
5y Beta as of 31-Mar-20 -2.567

Risk Indicator

Risk Indicator

1
2
3
4
5
6
7
Low Risk High Risk
Typically low rewards Typically high rewards

Ratings

Holdings

Holdings

as of 31-Mar-20
Name Weight (%)
ISH EUR CRP BND EX FIN 1-5 ETF EUR 2.90
ISH CORE EUR CORP BND ETF EUR DIST 1.88
ISHARES EURO ULTRASHORT BOND UCITS 1.86
ISHARES $ CORPORATE BOND UCITS ETF 1.52
ITALY (REPUBLIC OF) 1.3 05/15/2028 1.36
Name Weight (%)
ISH EUR HY CRP BND ETF EUR DIST 1.25
TREASURY (CPI) NOTE 0.375 01/15/2027 1.22
TREASURY (CPI) NOTE 0.25 07/15/2029 1.17
SPAIN (KINGDOM OF) 0.5 04/30/2030 0.85
ITALY (REPUBLIC OF) 1.75 07/01/2024 0.84
Holdings subject to change

Exposure Breakdowns

Exposure Breakdowns

as of 31-Mar-20

% of Market Value

Type Fund Benchmark Net
as of 31-Mar-20

% 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

Investor Class Distribution Frequency Bid Price ISIN TIS
Class P None 1.05 GB00B5LVV365 -
Class D None 1.09 GB00B618DS31 -
Class X None 1.14 GB00B66YXP33 -

Portfolio Managers

Portfolio Managers

Ian Winship
Ian Winship
Simon Blundell

Managing Director, is Head of Sterling Bond Portfolios within BlackRock's Fundamental Fixed Income.

 

Prior to joining BlackRock in 2011, Mr. Blundell 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, Mr. Blundell 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.

Literature

Literature