Fixed Income

BlackRock 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 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.
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Performance

Performance

Chart

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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 (%) -0.4 0.7 1.0 2.1 -2.1 2.1 4.4 -1.8 0.4 0.6
Comparator Benchmark 1 (%) 0.5 0.6 0.5 0.4 0.7 0.8 0.3 0.1 1.4 4.7

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

  1y 3y 5y 10y Incept.
8.54 1.40 1.84 1.17 1.34
Comparator Benchmark 1 (%) 5.30 3.35 2.11 1.34 1.18
  YTD 1m 3m 6m 1y 3y 5y 10y Incept.
5.02 0.78 2.68 3.47 8.54 4.27 9.55 12.35 18.87
Comparator Benchmark 1 (%) 3.94 0.41 1.28 2.60 5.30 10.38 10.98 14.22 16.52
  From
30-Sept-2019
To
30-Sept-2020
From
30-Sept-2020
To
30-Sept-2021
From
30-Sept-2021
To
30-Sept-2022
From
30-Sept-2022
To
30-Sept-2023
From
30-Sept-2023
To
30-Sept-2024
Total Return (%)

as of 30/Sept/2024

2.95 2.06 -4.20 0.27 8.54
Comparator Benchmark 1 (%)

as of 30/Sept/2024

0.48 0.06 0.73 4.06 5.30

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/Oct/2024
GBP 781,547,829
Fund Launch Date
30/Sept/2011
Fund Base Currency
GBP
Comparator Benchmark 1
3 month SONIA Compounded in Arrears
Initial Charge
5.00%
Management Fee
1.00
Performance Fee
0.00%
Domicile
United Kingdom
Management Company
BlackRock Fund Managers Ltd
Dealing Settlement
Trade Date + 3 days
Bloomberg Ticker
BRARBPA
Ongoing Charges Figure ex. Discount
1.07%
Share Class launch date
30/Sept/2011
Share Class Currency
GBP
Asset Class
Fixed Income
Investment Association Category
-
Ongoing Charges Figures
1.07%
ISIN
GB00B5LVV365
Use of Income
Accumulating
Regulatory Structure
UCITS
Morningstar Category
Global Flexible Bond - GBP Hedged
Dealing Frequency
Daily, forward pricing basis
SEDOL
B5LVV36
The Ongoing Charge may be discounted depending on the size of the fund.

Portfolio Characteristics

Portfolio Characteristics

Number of Holdings
as of 30/Sept/2024
797
3y Beta
as of 30/Sept/2024
2.121
Modified Duration
as of 30/Sept/2024
2.66
Effective Duration
as of 30/Sept/2024
2.25
WAL to Worst
as of 30/Sept/2024
4.18
Standard Deviation (3y)
as of 30/Sept/2024
3.80%
Yield to Maturity
as of 30/Sept/2024
4.66
Weighted Average YTM
as of 30/Sept/2024
4.49%
Weighted Avg Maturity
as of 30/Sept/2024
4.18

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 Absolute Return Bond Fund, Class P, as of 30/Sept/2024 rated against 624 Global Flexible Bond - GBP Hedged Funds.

Holdings

Holdings

as of 30/Sept/2024
Name Weight (%)
BSF EM FLEXI DYNAMIC BD FD X2 USD 5.15
NATWEST GROUP PLC MTN RegS 3.622 08/14/2030 2.01
BABCOCK INTERNATIONAL GROUP PLC MTN RegS 1.875 10/05/2026 1.39
JAPAN (GOVERNMENT OF) 30YR #81 1.6 12/20/2053 1.27
FORD MOTOR CREDIT COMPANY LLC MTN 4.535 03/06/2025 1.23
Name Weight (%)
BP CAPITAL MARKETS PLC NC6 RegS 3.25 12/31/2079 1.05
TRATON FINANCE LUXEMBOURG SA MTN RegS 5.625 01/16/2029 1.05
BANCO SANTANDER SA MTN RegS 3.125 10/06/2026 0.99
ENBW ENERGIE BADEN WUERTTEMBERG AG RegS 1.125 11/05/2079 0.95
VOLKSWAGEN INTERNATIONAL FINANCE N MTN RegS 4.002 03/27/2026 0.94
Holdings subject to change

Exposure Breakdowns

Exposure Breakdowns

as of 30/Sept/2024

% of Market Value

Type Fund Benchmark Net
as of 30/Sept/2024

% of Market Value

Type Fund Benchmark Net
as of 30/Sept/2024

% of Market Value

Type Fund Benchmark Net
as of 30/Sept/2024

% of Market Value

Type Fund Benchmark Net
as of 30/Sept/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 P GBP 1.18 1.19 GB00B5LVV365
Class D GBP 1.26 1.26 GB00B618DS31
Class X GBP 1.35 1.35 GB00B66YXP33

Portfolio Managers

Portfolio Managers

Leopold Lansing
Leopold Lansing
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

Literature

Literature