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

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Reinvestments

This product does not have any distributions data as of now.
  From
30-Sep-2016
To
30-Sep-2017
From
30-Sep-2017
To
30-Sep-2018
From
30-Sep-2018
To
30-Sep-2019
From
30-Sep-2019
To
30-Sep-2020
From
30-Sep-2020
To
30-Sep-2021
Total Return (%)

as of 30-Sep-21

2.34 -1.01 0.37 2.95 2.06
Benchmark (%)

as of 30-Sep-21

0.33 0.62 0.83 0.48 0.06
  1y 3y 5y 10y Incept.
2.06 1.79 1.33 1.32 1.32
Benchmark (%)

as of 30-Sep-21

0.06 0.46 0.46 0.54 0.54
  YTD 1m 3m 1y 3y 5y 10y Incept.
-0.09 0.26 -0.44 2.06 5.46 6.84 14.01 14.01
Benchmark (%)

as of 30-Sep-21

0.05 0.01 0.02 0.06 1.37 2.34 5.56 5.56

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

Key Facts

Key Facts

Size of Fund (Millions) as of 21-Oct-21 GBP 2,380.423
Price Yield as of 21-Oct-21 1.18
Number of Holdings as of 30-Sep-21 1656
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
Ongoing Charges Figures 1.09%
ISIN GB00B5LVV365
Bloomberg Ticker BRARBPA
Annual Management Fee 1.00%
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 500.00
Minimum Subsequent Investment GBP 100.00
Use of Income Accumulating

Portfolio Characteristics

Portfolio Characteristics

Weighted Average YTM as of 30-Sep-21 1.47%
Modified Duration as of 30-Sep-21 -1.08
Effective Duration as of 30-Sep-21 -1.49
Weighted Avg Maturity as of 30-Sep-21 5.89
3y Volatility - Benchmark as of 30-Sep-21 0.11
3y Beta as of 30-Sep-21 -4.244
5y Volatility - Benchmark as of 30-Sep-21 0.09
5y Beta as of 30-Sep-21 -4.839
WAL to Worst as of 30-Sep-21 5.89

ESG Integration

ESG Integration

ESG integration is the practice of incorporating material environmental, social and governance (ESG) information or insights alongside traditional measures into the investment decision process to improve long term financial outcomes of 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, but rather describes how ESG information is considered as part of the overall investment process.


The Fund manager includes ESG considerations in combination with other information in the research and due diligence phase of the investment process. ESG information may be sourced internally, via collaboration with the BlackRock Investment Stewardship team in engaging issuers on material environmental, social or governance topics, or from third-party providers. The Fund manager’s ongoing monitoring of the portfolio involves regular portfolio risk reviews with the Risk and Quantitative Analysis group. These reviews include discussion 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

Holdings

Holdings

as of 30-Sep-21
Name Weight (%)
ISH EUR CORP BND 1-5 ETF EUR DIST 2.88
ISHARES EURO ULTRASHORT BOND UCITS 1.34
ISH CORE EUR CORP BND ETF EUR DIST 1.01
CHINA PEOPLES REPUBLIC OF (GOVERNM 3.72 04/12/2051 0.98
UK CONV GILT 0.875 07/31/2033 0.88
Name Weight (%)
GREECE REPUBLIC OF (GOVERNMENT) 0 02/12/2026 0.76
AUSTRIA (REPUBLIC OF) 2.1 09/20/2117 0.72
MALAYSIA (GOVERNMENT) 2.632 04/15/2031 0.50
ISH EUR HY CRP BND ETF EUR DIST 0.47
BELGIUM (KINGDOM OF) 0 10/22/2031 0.46
Holdings subject to change

Exposure Breakdowns

Exposure Breakdowns

as of 30-Sep-21

% of Market Value

Type Fund Benchmark Net
as of 30-Sep-21

% 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 1.13 GB00B5LVV365 -
Class D None 1.18 GB00B618DS31 -
Class X None 1.25 GB00B66YXP33 -

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

Literature

Literature