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BFMSX

Low Duration Bond Fund

Fixed Income

BFMSX

Low Duration Bond Fund

Overview

About this Fund

  • Bonds with Less Interest Rate Risk
  • Access BlackRock's Deep Bond Expertise
  • Seeking Income with Stability

Investment Approach

Invests at least 80% of its assets in investment grade bonds and maintains an average portfolio duration that is between 0-3 years. The Fund may invest up to 20% of its assets in non-investment grade bonds. The Fund may also invest up to 25% of its assets in foreign issuers, of which 10% may be invested in emerging markets issuers. Up to 10% of the Fund’s assets may be exposed to non-U.S. currency risk.

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Performance

Performance

  • Returns

  YTD 1m 3m 1y 3y 5y 10y
Total Return (%) Total return represents changes to the NAV and accounts for distributions from the fund. 4.12 0.00 0.75 4.59 7.30 10.23 30.95
Benchmark (%) Index: ICE BofAML US Corp & Govt Index, 1-3 Yrs (B1A0).<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. 3.44 -0.05 0.70 4.65 5.62 8.26 16.70
Morningstar Category Avg. (%) Short-Term Bond 4.08 0.00 0.78 4.57 6.47 9.52 24.69
Lipper Category Avg. (%) Sht Inv Grade Debt Funds 3.84 0.02 0.72 4.26 6.48 9.10 23.85
  2014 2015 2016 2017 2018
Total Return (%) Total return represents changes to the NAV and accounts for distributions from the fund. 1.44 0.92 1.88 1.97 1.11
Benchmark (%) Index: ICE BofAML US Corp & Govt Index, 1-3 Yrs (B1A0)<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. 0.78 0.67 1.29 0.86 1.63
Morningstar Category Avg. (%) Short-Term Bond 1.07 0.19 2.08 1.73 0.92
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: 182.09

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
19 of 24 U.S. bond funds, accounting for 97% of our active mutual fund assets, outperformed within their Morningstar peer groups. Based on institutional share class.*
BlackRock Fixed Income Funds Delivered

Key Facts

Key Facts

Size of Class (Millions) as of Oct 17, 2019 $5,390.1 M
Size of Fund (Millions) as of Oct 17, 2019 $7,423.5 M
Share Class launch date Jul 17, 1992
Asset Class Fixed Income
Morningstar Category Short-Term Bond
Lipper Classification Sht Inv Grade Debt Funds
Benchmark Index ICE BofAML US Corp & Govt Index, 1-3 Yrs (B1A0)
CUSIP 09260B465
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 Sep 30, 2019 684
Max Offer Price as of Oct 17, 2019 $9.64
Open to New Investors Yes
Turnover Percent as of Sep 30, 2019 218%

Portfolio Characteristics

Portfolio Characteristics

Alpha (3y) Compared to ICE BofAML US Corp & Govt Index, 1-3 Yrs (B1A0).<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 Sep 30, 2019 0.07
R-Squared (3y) as of Sep 30, 2019 76.41
Beta (3y) as of Sep 30, 2019 0.81
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 Sep 30, 2019 2.21%
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 Sep 30, 2019 2.17%
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 Sep 30, 2019 2.22%
Yield to Worst The average rate of return of the portfolio at current market prices, adjusting for optionality. as of Sep 30, 2019 2.19%
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 Sep 30, 2019 1.90 yrs
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 Sep 30, 2019 2.70 yrs
Best 3-Month Return Over the Last 3 Years 3 months ending Mar 31, 2019 1.78%
Worst 3-Month Return Over the Last 3 Years 3 months ending Feb 28, 2018 -0.09%
Fund Standard Deviation (3y) as of Sep 30, 2019 0.90

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 Low Duration Bond Fund, Class Inst, as of Sep 30, 2019 rated against 488 Short-Term 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 Aug 31, 2019 out of 314, 5,851, 319, 164 and 319 Funds, respectively in Lipper's Sht Inv Grade Debt Funds classification.

Morningstar Analyst Rating

Morningstar Analyst Rating - Bronze
Morningstar has awarded the Fund a Bronze medal. Fewer than 10% of US open-end funds hold medalist ratings. (Effective Mar 14, 2019) ‡

Holdings

Holdings

as of Sep 30, 2019
Name Weight (%)
UNITED STATES TREASURY 11.96
UNIFORM MBS 7.39
FEDERAL NATIONAL MORTGAGE ASSOCIATION 6.27
ISHARES ULTRASHORT DURATION BOND FUND 2.16
FEDERAL HOME LOAN MORTGAGE CORPORATION 1.73
Name Weight (%)
CANADA HOUSING TRUST NO.1 1.10
BANK OF AMERICA CORP 1.06
FORDL_19-A-A2A 0.95
ALLERGAN FUNDING SCS 0.89
JPMORGAN CHASE BANK NA 0.87

Exposure Breakdowns

Exposure Breakdowns

as of Sep 30, 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 Sep 30, 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 Sep 30, 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 Sep 30, 2019

% Market Value

Type Fund Benchmark Net
Allocations subject to change.
as of Sep 30, 2019

% Market Value

Type Fund Benchmark Net
as of Sep 30, 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 Sep 30, 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

Thomas Musmanno, CFA
Thomas Musmanno, CFA
Managing Director

  

Read More

Thomas Musmanno, CFA, Managing Director, is Head of U.S. Short Duration and New York Core Portfolio Management (CorePM) within BlackRock's Global Fixed Income group and a member of the Global Fixed Income executive team. Mr. Musmanno's service with the firm dates back to 1991, including his years with Merrill Lynch Investment Managers (MLIM), which merged with BlackRock in 2006. At MLIM, he was a fixed income portfolio manager. Mr. Musmanno joined MLIM in 1991 as an analyst and held a variety of positions, including fixed income research analyst in trust accounting in Merrill Lynch's Private Client Group.

 

Mr. Musmanno earned a BS degree in finance in 1991 from Siena College and an MBA degree in finance from St. John's University in 1993.

Scott MacLellan, CFA
Scott MacLellan, CFA
Portfolio Manager, BlackRock Global Fixed Income Group

  

Read More

Scott MacLellan, CFA, Director, is a portfolio manager in BlackRock's Americas Fixed Income Group. He focuses on The BlackRock Obsidian Fund and short duration portfolios.

 

Prior to assuming his current responsibilities in 2008, Mr. MacLellan was a member of the Global Client Group, covering Japanese clients. He also served as a product specialist for short duration and LIBOR-benchmarked fixed income products. Previously, Mr. MacLellan spent four years with Nomura BlackRock Asset Management (NBAM), a former joint venture between BlackRock and Nomura Asset Management Co., Ltd, in Tokyo as an account manager. Prior to joining NBAM in 2001, Mr. MacLellan spent a year in the Global Finance and Investment Department of IBJ Leasing in Tokyo.

 

Mr. MacLellan earned a BS degree, with honors, in economics and international development studies from King's College in 1997.

Portfolio Manager
Read the Team's Commentary

Literature

Literature

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