BlackRock Corporate Bond Fund

Would your client portfolios pass a health check? Do they strike a balance between enhancing income potential, and managing and hedging risk? Against a backdrop of rapidly-changing market conditions, there’s never been a more crucial time to fine tune your client’s portfolios to ensure they are in an optimum condition.

If you do find deficiencies in your client portfolios, exposure to income-generating corporate bonds could be the remedy they need. Company-specific risks may create more volatility and greater performance dispersion, leading to alpha opportunities for corporate bond investors.

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.

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Portfolio health check

Amid heightened market volatility it’s prudent to keep a check on the health of your investment portfolio. Is it optimised for today’s fast paced and changing environment? BlackRock’s Corporate Bond Fund is built to generate consistent alpha in all market cycles and could provide the resilience your client's portfolio is looking for.

BlackRock Infogrpahic

FE Crown Fund rating, Feb 2019
The Adviser Centre Ratings, fund, Feb 2019
Citywire, fund manager, Feb 2019
Morningstar, fund, June 2018
Morningstar awards, fund, Mar 2019
Elite Rated, fund, Feb 2019
RSMR, fund, Feb 2019

Investment team and process

Ben Edwards, Corporate Bond Fund Portfolio Manager, provides a detailed overview of the fund’s investment process, team and how the fund could fit into a client’s portfolio.

 Croud fund rating citywire Logo Morning star logoRated Fund

adviser centerMorningstar Silver logo Elite fund logo

FE Crown Fund rating, Feb 2019
The Adviser Centre Ratings, fund, Feb 2019
Citywire, fund manager, Feb 2019
Morningstar, fund, June 2018
Morningstar awards, fund, Mar 2019
Elite Rated, fund, Feb 2019
RSMR, fund, Feb 2019

How can the fund benefit
a portfolio?

When put at the core of investor portfolios, the fund offers diversification from riskier assets and may provide a reliable income stream.1The latest document from BlackRock’s Portfolio Analysis and Solutions team (BPAS) analysed the potential benefits of adding the BlackRock Corporate Bond Fund to a typical conservative portfolio.2 and compared its characteristics with similar indices and peers.

The BPAS team conduct customised portfolio construction and risk management analysis to assist with asset allocation, portfolio structure and implementation decisions. It leverages BlackRock’s unique Aladdin risk platform and the BlackRock Investment Institute’s macro insights, helping investors de-code the risks, factor and specific features of portfolios and evolve them, and to design new investment propositions.

1Please note that diversification and asset allocation may not fully protect you from market risk.
2Typical conservative portfolio is based on the asset allocation of MSCI WMA Private Investors Conservative Index as of July 2018.

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

Exchange rate risk: 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.

Charges from capital: Some or all of the Manager’s annual charge for the Fund is taken from capital rather than from income. Whilst this increases the yield, it reduces the potential for capital growth.

High yield bond: 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.

Liquidity risk: 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.

Interest rate risk: 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.

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