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BHYCX

High Yield Bond Fund

Fixed Income

BHYCX

High Yield Bond Fund

Overview

Balancing income and risk in High Yield

The BlackRock High Yield Bond Fund has helped investors achieve high levels of income and capital appreciation with a disciplined, research-intensive investment process.

A SOURCE OF HIGH INCOME

High yield bonds have historically provided higher levels of income than core bonds*

FLEXIBILITY FOR CHANGING MARKETS

The fund has prudently balanced income, risk and return through diverse markets

PROVEN RECORD OF INCOME AND RETURNS

The fund has navigated diverse market conditions while delivering an attractive yield

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Performance

Performance

  • Returns

  1y 3y 5y 10y
Total Return (%) Total return represents changes to the NAV and accounts for distributions from the fund. 5.59 6.50 3.26 8.65
Return w/ Sales Charge (%) Returns with sales charge reflect the deduction of applicable contingent deferred sales charge (CDSC) for Investor C shares. The maximum CDSC of 1% for Investor C shares is reduced to 0% after 1 year. 4.59 6.50 3.26 8.65
Benchmark (%) Index: BBG Barc US Corp High Yield 2% Issuer Capped 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. 7.48 7.52 4.71 9.22
Morningstar Category Avg. (%) High Yield Bond 6.19 6.31 3.47 7.95
Morningstar Ranking Rankings are based on total return excluding sales charges, independently calculated and not combined to create an overall ranking. 487/705 292/610 326/524 73/337
Morningstar Quartile Rankings based on total return excluding sales charges, independently calculated and not combined to create an overall ranking. 3 2 3 1
Lipper Category Avg. (%) High Yield Funds 6.54 6.50 3.61 7.96
Lipper Ranking Rankings are based on total return excluding sales charges. 96/135 68/127 57/102 20/54
Lipper Quartile Rankings are based on total return excluding sales charges. 3 3 3 2
  YTD 1m 3m 1y 3y 5y 10y
Total Return (%) Total return represents changes to the NAV and accounts for distributions from the fund. 9.72 2.39 2.52 5.59 20.81 17.41 129.33
Return w/ Sales Charge (%) Returns with sales charge reflect the deduction of applicable contingent deferred sales charge (CDSC) for Investor C shares. The maximum CDSC of 1% for Investor C shares is reduced to 0% after 1 year. 8.72 1.39 1.52 4.59 20.81 17.41 129.33
Benchmark (%) Index: BBG Barc US Corp High Yield 2% Issuer Capped 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. 9.94 2.28 2.50 7.48 24.29 25.86 141.52
Morningstar Category Avg. (%) High Yield Bond 8.79 2.06 2.28 6.19 20.15 18.59 114.89
Lipper Category Avg. (%) High Yield Funds 9.47 2.24 2.41 6.54 20.83 19.51 115.90
  2014 2015 2016 2017 2018
Total Return (%) Total return represents changes to the NAV and accounts for distributions from the fund. 2.15 -4.93 12.70 7.07 -3.98
Benchmark (%) Index: BBG Barc US Corp High Yield 2% Issuer Capped 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. 2.46 -4.43 17.13 7.50 -2.08
Morningstar Category Avg. (%) High Yield Bond 1.11 -4.01 13.30 6.47 -2.59
The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted.

The Fund’s returns prior to September 17, 2018 are the returns of a predecessor fund that reorganized into the Fund on September 17, 2018. The predecessor fund had the same investment objectives, strategies and policies, portfolio management team and contractual arrangements, including the same contractual fees and expenses, as the Fund as of the date of the reorganization. As a result, the performance of the Fund would have been substantially similar to that of the predecessor fund.

Growth of Hypothetical $10,000 The growth of hypothetical $10,000 chart reflects a hypothetical $10,000 investment and assumes reinvestment of dividends and capital gains. Fund expenses, including management fees and other expenses were deducted.

Performance chart data not available for display.
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Cum. Fund Perf. Since Inception: 267.70

Source: Lipper. Data reflects different methodology from the BlackRock calculated returns in the Returns tab. The $10,000 Hypothetical Over Time chart reflects a hypothetical $10,000 investment in the investor class of shares noted and does not assume the max sales charge. Had sales charge been included, returns would have been lower. The chart uses total return NAV performance and assumes reinvestment of dividends and capital gains. Fund expenses, including 12b-1 fees, management fees and other expenses were deducted. Performance for other share classes will vary.

Distributions

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Ex-Date Payable Date Record Date Total Distribution Current year distributions are not classified as “Income,” “Short-Term Capital Gains,” “Long-Term Capital Gains,” or “Return of Capital” until approximately 60 days following calendar year-end. Income ST Cap Gains LT Cap Gains Return of Capital

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Year Total Distribution Current year distributions are not classified as “Income,” “Short-Term Capital Gains,” “Long-Term Capital Gains,” or “Return of Capital” until calendar year-end. Income ST Cap Gains LT Cap Gains

Past distributions are not indicative of future distributions.
Click here, for the most recent distributions.



BlackRock Fixed Income Funds Delivered
BlackRock Fixed Income Funds Delivered
21 of 24 U.S. bond funds, accounting for 99% of our active mutual fund assets, outperformed within their Morningstar peer groups. Based on institutional share class.*

Key Facts

Key Facts

Size of Class (Millions) as of Jul 16, 2019 $275.8 M
Size of Fund (Millions) as of Jul 16, 2019 $16,731.3 M
Share Class launch date Nov 19, 1998
Asset Class Fixed Income
Morningstar Category High Yield Bond
Lipper Classification Global High Yield Fds
Benchmark Index BBG Barc US Corp High Yield 2% Issuer Capped Index
CUSIP 09260B655
Distribution Frequency How often a distribution is paid by the fund. The most common distribution frequencies are annually, biannually and quarterly. None
Number of Holdings as of Jun 28, 2019 1,304
Max Offer Price as of Jul 16, 2019 $7.66
Open to New Investors Yes
Turnover Percent as of Jun 30, 2019 90%

Portfolio Characteristics

Portfolio Characteristics

Alpha (3y) Compared to BBG Barc U.S. Corporate High Yield Index.<br/><br/>Alpha is calculated at the portfolio level.<br/><br/>A measure of performance on a risk-adjusted basis. Alpha takes the volatility (price risk) of a mutual fund and compares its risk-adjusted performance to a benchmark index. The excess return of the fund relative to the return of the benchmark index is a fund&#39;s alpha. as of Jun 30, 2019 -0.11
R-Squared (3y) as of Jun 30, 2019 97.38
Beta (3y) as of Jun 30, 2019 1.05
30 Day SEC Yield A standard calculation of yield introduced by the SEC in order to provide fairer comparison among funds. This yield reflects the interest earned after deducting the fund&#39;s expenses during the most recent 30-day period by the average investor in the fund. Negative 30-Day SEC Yield results when accrued expenses of the past 30 days exceed the income collected during the past 30 days. as of Jun 30, 2019 5.17%
Unsubsidized 30-Day SEC Yield Represents what a fund&#39;s 30-Day SEC Yield would have been had no fee waiver or expense reimbursement been in place over the period. as of Jun 30, 2019 5.17%
Yield to Maturity Yield to Maturity (YTM) is the discount rate that equates the present value of a bond&#39;s cash flows with its market price (including accrued interest). The Fund Average YTM is the weighted average of the fund&#39;s individual bond holding YTMs based upon Net Asset Value (&#39;NAV&#39;). The measure does not include fees and expenses. For callable bonds, YTM is the yield-to-worst. as of Jun 28, 2019 6.18%
Yield to Worst The average rate of return of the portfolio at current market prices, adjusting for optionality. as of Jun 28, 2019 5.69%
Weighted Average Life Nominal Weighted Average Life is shown. Weighted Average Life is the average number of years for which each dollar of unpaid principal on a loan or mortgage remains outstanding. as of Jun 28, 2019 4.72 yrs
Effective Duration Effective Duration measures the sensitivity of the price of a bond with or without embedded options to changes in interest rates, taking into account the likelihood of the bond being called, put and/or sunk prior to its final maturity date while incorporating after-tax impacts on the bond. The options-based duration model used by BlackRock employs certain assumptions and may differ from other fund complexes. Effective Duration is measured at the individual bond level, aggregated to the portfolio level, and adjusted for leverage, hedging transactions and non-bond holdings, including derivatives. as of Jun 28, 2019 3.35 yrs
Best 3-Month Return Over the Last 3 Years 3 months ending Mar 31, 2019 7.01%
Worst 3-Month Return Over the Last 3 Years 3 months ending Dec 31, 2018 -5.65%
Fund Standard Deviation (3y) as of Jun 30, 2019 4.64

For the latest month-end Distribution Yield, click here.


This information must be preceded or accompanied by a current prospectus. For standardized performance, please see the Performance section above.

Ratings

Ratings

Morningstar Rating

4
Overall Morningstar Rating for High Yield Bond Fund, Class C, as of Jun 30, 2019 rated against 610 High Yield Bond Funds.

Lipper Leader

 
 
 
Overall Lipper Leaders ratings based on an equal-weighted average of percentile ranks for each measure over 3-, 5-, and 10-year periods (if applicable) and do not take into account the effects of sales charges for these categories (Consistent Return, Preservation, Total Return, Expense, and Tax Efficiency) as of Jun 30, 2019 out of 127, 5,787, 127, 124 and 127 Funds, respectively in Lipper's Global High Yield Fds classification.

Morningstar Analyst Rating

Morningstar Analyst Rating - Silver
Morningstar has awarded the Fund a Silver medal. Fewer than 10% of US open-end funds hold medalist ratings. (Effective Oct 16, 2018) ‡

Holdings

Holdings

as of Jun 28, 2019
Name Weight (%)
TRANSDIGM INC 2.00
CSC HOLDINGS LLC 1.99
BAUSCH HEALTH COMPANIES INC 1.71
REFINITIV US HOLDINGS INC 1.55
CLEAR CHANNEL WORLDWIDE HOLDINGS INC 1.54
Name Weight (%)
BOMBARDIER INC 1.40
INTELSAT JACKSON HOLDINGS SA 1.38
SPRINT CORP 1.25
PANTHER BF AGGREGATOR 2 LP 1.19
CCO HOLDINGS LLC 1.19

Exposure Breakdowns

Exposure Breakdowns

as of Jun 28, 2019

% Notional Exposures % of Notional Exposures is a breakdown designed to represent a fund’s ownership of both traditional fixed income securities and derivatives including, but not limited to, futures, options and swap contracts. For traditional fixed income securities, there is no difference between the market value and the notional exposure. For derivatives, the notional exposure represents the exposure to the underlying assets plus the value of the financing (or lending) associated with the implementation of these derivatives. The sum of all exposures (both market value and notional exposure) is equal to the fund’s net asset value (open-end) or net managed assets (closed-end). Net Derivatives represents the approximate net notional value of the longs less the short derivatives held in the fund.

Type Fund Benchmark Net
as of Jun 28, 2019

% Notional Exposures % of Notional Exposures is a breakdown designed to represent a fund’s ownership of both traditional fixed income securities and derivatives including, but not limited to, futures, options and swap contracts. For traditional fixed income securities, there is no difference between the market value and the notional exposure. For derivatives, the notional exposure represents the exposure to the underlying assets plus the value of the financing (or lending) associated with the implementation of these derivatives. The sum of all exposures (both market value and notional exposure) is equal to the fund’s net asset value (open-end) or net managed assets (closed-end). Net Derivatives represents the approximate net notional value of the longs less the short derivatives held in the fund.

Type Fund Benchmark Net
as of Jun 28, 2019

% Notional Exposures % of Notional Exposures is a breakdown designed to represent a fund’s ownership of both traditional fixed income securities and derivatives including, but not limited to, futures, options and swap contracts. For traditional fixed income securities, there is no difference between the market value and the notional exposure. For derivatives, the notional exposure represents the exposure to the underlying assets plus the value of the financing (or lending) associated with the implementation of these derivatives. The sum of all exposures (both market value and notional exposure) is equal to the fund’s net asset value (open-end) or net managed assets (closed-end). Net Derivatives represents the approximate net notional value of the longs less the short derivatives held in the fund.

Type Fund Benchmark Net
as of Jun 28, 2019

% Market Value

Type Fund Benchmark Net
Allocations subject to change.
as of Jun 28, 2019

% Market Value

Type Fund Benchmark Net
as of Jun 28, 2019

% Notional Exposures % of Notional Exposures is a breakdown designed to represent a fund’s ownership of both traditional fixed income securities and derivatives including, but not limited to, futures, options and swap contracts. For traditional fixed income securities, there is no difference between the market value and the notional exposure. For derivatives, the notional exposure represents the exposure to the underlying assets plus the value of the financing (or lending) associated with the implementation of these derivatives. The sum of all exposures (both market value and notional exposure) is equal to the fund’s net asset value (open-end) or net managed assets (closed-end). Net Derivatives represents the approximate net notional value of the longs less the short derivatives held in the fund.

Type Fund Benchmark Net
as of Jun 28, 2019

% Market Value

Type Fund Benchmark Net
The fund itself has not been rated by an independent rating agency. Credit quality ratings on underlying securities of the fund are received from S&P, Moody’s and Fitch and converted to the equivalent S&P major rating category. This breakdown is provided by BlackRock and takes the median rating of the three agencies when all three agencies rate a security the lower of the two ratings if only two agencies rate a security and one rating if that is all that is provided. Unrated securities do not necessarily indicate low quality. Below investment-grade is represented by a rating of BB and below. Ratings and portfolio credit quality may change over time.

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. Certain transactions the funds may utilize may give rise to a form of leverage through either (a) additional market exposure or (b) borrowing capital in an attempt to increase investment return. The use of such transactions includes certain leverage-related risks, including potential for higher volatility, greater decline of the fund’s net asset value and fluctuations of dividends and distributions paid by the fund.

Allocations are subject to change.

Portfolio Managers

Portfolio Managers

James Keenan, CFA
James Keenan, CFA
Chief Investment Officer and Global Co-Head of Credit

     

Read More

James E. Keenan, CFA, Managing Director, is Chief Investment Officer and Global Co-Head of Credit within BlackRock Alternative Investors (BAI). He leads the strategy for Global Fundamental Credit and is responsible for providing oversight of the investment process and performance, the partnerships with BlackRock's distribution channels, and the team's infrastructure as well as determining the strategic direction and growth initiatives of the platform. Jim oversees Leveraged Finance, Hedge Funds, and Private Credit businesses including opportunistic, middle market and specialty finance.

 

He serves on BlackRock's Global Operating Committee, BlackRock Alternative Investors Executive Committee, GFI Executive Committee, PEP and ASG Investment Committees and the Infrastructure Debt Management Committee. He is also the Chairman of the Board of the BlackRock Capital Investment Corporation.

 

Over the last 13 years, Jim was the portfolio manager across a variety of strategies including HY, Opportunistic and distressed portfolios and long short hedge funds. He has been responsible for building the Global fundamental credit business since 2006.

 

Prior to joining BlackRock in 2004, Mr. Keenan held roles within credit research and trading from 1998 to 2003 at UBS Global Asset Management and at Columbia Management Group.

 

He also serves on Notre Dame's Wall Street Committee & Athletic Advisory Council and the Board of Good Shepherd.

 

Mr. Keenan earned a BBA degree in finance from the University of Notre Dame in 1998.

David Delbos
David Delbos
Managing Director

    

Read More

David Delbos, Managing Director, is the Co-Head of U.S. High Yield within BlackRock's Global Credit team. He is also responsible for managing Global High Yield strategies.

 

Mr. Delbos joined BlackRock in 2002 as a credit research analyst in the Leveraged Finance Group. He transitioned to a portfolio management role in 2012. 

 

Prior to joining the Leveraged Finance team at BlackRock in 2002, Mr. Delbos was an analyst at Deutsche Bank Securities Inc.

 

Mr. Delbos earned a BA degree, Magna Cum Laude, in history from Tufts University in 2000.

Mitchell S. Garfin, CFA
Mitchell S. Garfin, CFA
Co-Head of U.S. High Yield in Global Credit team

  

Read More

Mitchell S. Garfin, CFA, Managing Director, is the Co-Head of U.S. High Yield within BlackRock's Global Credit team. He is also responsible for managing Global High Yield strategies. 

 

Mr. Garfin joined BlackRock in 1997 as an analyst in the Account Management Group working with taxable financial institutional clients. He joined the Portfolio Management Group in 2000 as a credit research analyst and in 2005 moved to portfolio management.  Mr. Garfin moved to his current role in 2007 and serves as Head of the Global Credit Human Capital Committee.

 

Mr. Garfin earned a BA degree, with distinction, in finance from the University of Michigan in 1997, and an MBA degree in finance and economics from New York University in 2005.

Derek Schoenhofen
Derek Schoenhofen
Portfolio Manager
Read the Team's Commentary

Literature

Literature

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