Fixed Income

BSHKX

BlackRock Sustainable High Yield Bond Fund

  • NAV as of Apr 17, 2024 $8.71
    52 WK: 8.26 - 8.89
  • 1 Day NAV Change as of Apr 17, 2024 0.01 (0.11%)
  • NAV Total Return as of Apr 17, 2024 YTD: -0.11%

Overview

About this Fund

Fund's Investment Strategy

 

1.Apply initial ESG criteria against the  traditional high yield index

 

2.Global Fixed Income ESG Investment Team applies proprietary scoring methodology to further refine universe

 

3.High yield team implements fundamental, bottom-up process to select bonds from this universe, favoring those with higher scores

Investment Approach

Maximize total return by investing primarily in U.S. high yield bonds while seeking to maintain environmental, social, and governance ("ESG") characteristics, climate risk exposure and climate opportunity relative to the Fund's benchmark.

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Performance

Performance

Growth of Hypothetical $10,000

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Cum. Fund Perf. Since Inception: 2.38

Distributions

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Ex-Date Payable Date Record Date Total Distribution Income ST Cap Gains LT Cap Gains Return of Capital

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Year Total Distribution Income ST Cap Gains LT Cap Gains

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



  1y 3y 5y 10y Incept.
Total Return (%) 9.94 - - - 0.88
Benchmark (%) 11.15 - - - 1.33
Morningstar Category Avg. (%) 10.40 - - - -
Morningstar Ranking 381/666 - - - -
Morningstar Quartile 3 - - - -
Lipper Ranking 277/508 - - - -
Lipper Quartile 3 - - - -
  YTD 1m 3m 1y 3y 5y 10y Incept.
Total Return (%) 1.51 1.24 1.51 9.94 - - - 2.38
Benchmark (%) 1.47 1.18 1.47 11.15 - - - 3.61
Morningstar Category Avg. (%) 1.67 1.13 1.67 10.40 - - - -
  2019 2020 2021 2022 2023
Total Return (%) - - - -11.29 12.58
Benchmark (%) - - - -11.18 13.44
Morningstar Category Avg. (%) - - - -10.09 12.08

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

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.

Key Facts

Key Facts

Size of Class (Millions) as of Apr 17, 2024 $43.4 M
Size of Fund (Millions) as of Apr 17, 2024 $43.7 M
Share Class launch date Jul 21, 2021
Asset Class Fixed Income
Morningstar Category High Yield Bond
Lipper Classification High Yield Funds
Benchmark Index Bloomberg U.S. Corporate High Yield 2% Issuer Capped Index
CUSIP 09260B259
Distribution Frequency Monthly
Number of Holdings as of Mar 28, 2024 479
Max Offer Price as of Apr 17, 2024 $8.71
Open to New Investors Yes
Turnover Percent in the Annual Report 37.00%

Portfolio Characteristics

Portfolio Characteristics

Alpha (3y) as of Mar 31, 2024 0.00
R-Squared (3y) as of Mar 31, 2024 0.00
Beta (3y) as of Mar 31, 2024 0.00
30 Day SEC Yield as of Mar 31, 2024 7.12%
Unsubsidized 30-Day SEC Yield as of Mar 31, 2024 6.24%
Yield to Maturity as of Mar 28, 2024 7.53%
Yield to Worst as of Mar 28, 2024 7.38%
Weighted Average Life as of Mar 28, 2024 4.32 yrs
Effective Duration as of Mar 28, 2024 3.19 yrs
Best 3-Month Return Over the Last 3 Years 3 months ending - -
Worst 3-Month Return Over the Last 3 Years 3 months ending - -
Fund Standard Deviation (3y) as of Mar 31, 2024 0.00
This information must be preceded or accompanied by a current prospectus. For standardized performance, please see the Performance section above.

Sustainability Characteristics

Sustainability Characteristics

Sustainability Characteristics provide investors with specific non-traditional metrics. Alongside other metrics and information, these enable investors to evaluate funds on certain environmental, social and governance characteristics. Sustainability Characteristics do not provide an indication of current or future performance nor do they represent the potential risk and reward profile of a fund. They are provided for transparency and for information purposes only. Sustainability Characteristics should not be considered solely or in isolation, but instead are one type of information that investors may wish to consider when assessing a fund. Learn more


This fund seeks to follow a sustainable, impact or ESG investment strategy, as disclosed in its prospectus. For more information regarding the fund's investment strategy, please see the fund's prospectus.


Review the MSCI methodologies behind Sustainability Characteristics using the links below.

MSCI ESG Fund Rating (AAA-CCC) as of Mar 21, 2024 A
MSCI ESG % Coverage as of Mar 21, 2024 66.51%
MSCI ESG Quality Score (0-10) as of Mar 21, 2024 5.8
MSCI ESG Quality Score - Peer Percentile as of Mar 21, 2024 87.98%
Fund Lipper Global Classification as of Mar 21, 2024 Bond USD High Yield
Funds in Peer Group as of Mar 21, 2024 441
MSCI Weighted Average Carbon Intensity (Tons CO2E/$M SALES) as of Mar 21, 2024 205.26
MSCI Weighted Average Carbon Intensity % Coverage as of Mar 21, 2024 66.90%
All data is from MSCI ESG Fund Ratings as of Mar 21, 2024, based on holdings as of Sep 30, 2023. As such, the fund’s sustainable characteristics may differ from MSCI ESG Fund Ratings from time to time.

To be included in MSCI ESG Fund Ratings, 65% (or 50% for bond funds and money market funds) of the fund’s gross weight must come from securities with ESG coverage by MSCI ESG Research (certain cash positions and other asset types deemed not relevant for ESG analysis by MSCI are removed prior to calculating a fund’s gross weight; the absolute values of short positions are included but treated as uncovered), the fund’s holdings date must be less than one year old, and the fund must have at least ten securities.

Business Involvement

Business Involvement

Business Involvement metrics can help investors gain a more comprehensive view of specific activities in which a fund may be exposed through its investments.


Business Involvement metrics are not indicative of a fund’s investment objective, and, unless otherwise stated in fund documentation and included within a fund’s investment objective, do not change a fund’s investment objective or constrain the fund’s investable universe. For more information regarding a fund's investment strategy, please see the fund's prospectus.


Review the MSCI methodology behind the Business Involvement metrics, using links below.

MSCI - Controversial Weapons as of - -
MSCI - UN Global Compact Violators as of - -
MSCI - Nuclear Weapons as of - -
MSCI - Thermal Coal as of - -
MSCI - Civilian Firearms as of - -
MSCI - Oil Sands as of - -
MSCI - Tobacco as of - -
Business Involvement Coverage as of - -
Percentage of Fund not covered as of - -
BlackRock business involvement exposures as shown above for Thermal Coal and Oil Sands are calculated and reported for companies that generate more than 5% of revenue from thermal coal or oil sands as defined by MSCI ESG Research. For the exposure to companies that generate any revenue from thermal coal or oil sands (at a 0% revenue threshold), as defined by MSCI ESG Research, it is as follows: Thermal Coal -% and for Oil Sands -%.

Business Involvement metrics are calculated by BlackRock using data from MSCI ESG Research which provides a profile of each company’s specific business involvement. BlackRock leverages this data to provide a summed up view across holdings and translates it to a fund's market value exposure to the listed Business Involvement areas above.


Business Involvement metrics are designed only to identify companies where MSCI has conducted research and identified as having involvement in the covered activity. As a result, it is possible there is additional involvement in these covered activities where MSCI does not have coverage. This information should not be used to produce comprehensive lists of companies without involvement. Business Involvement metrics are only displayed if at least 1% of the fund’s gross weight includes securities covered by MSCI ESG Research.

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 the investment research, portfolio construction, and investment monitoring phases of the investment process. The Fund manager maintains internal ESG scorecards for certain issuers under consideration for investment and certain existing issuers of publicly traded securities. These scorecards analyze and track internal and external research views across a range of environmental, social, and governance factors sourced from primary and third-party ESG information and research. Portfolio management teams may consider the sector and issuer ESG views and scores during portfolio construction. The Fund manager also considers ESG criteria during post-investment monitoring and conducts regular portfolio risk reviews between the investment team and BlackRock’s Risk and Quantitative Analysis group. These reviews include discussion of the portfolio's exposure to material ESG risks, where appropriate.

Fees

Fees

as of current prospectus
Gross Expense Ratio 1.52%
Net Expense Ratio 0.53%

Net Expense Ratio excluding Investment Related Expenses is 0.53%

  • Acquired Fund Fees and Expenses 0.00%
  • Interest expense 0.00%

Ratings

Ratings

Morningstar Medalist Rating

Morningstar Medalist Rating - GOLD
Morningstar has awarded the Fund a Gold medal, its highest level of conviction. (Effective Feb 29, 2024)

Holdings

Holdings

as of Mar 28, 2024
Name Weight (%)
CLOUD SOFTWARE GROUP INC 2.83
HUB INTERNATIONAL LTD 2.76
TRANSDIGM INC 2.63
ALLIANT HOLDINGS INTERMEDIATE LLC / ALLIANT HOLDINGS CO-ISSUER 2.28
CLEAR CHANNEL OUTDOOR HOLDINGS INC 1.56
Name Weight (%)
BIG RIVER STEEL LLC 1.54
ATHENAHEALTH GROUP INC 1.53
ALLIED UNIVERSAL HOLDCO LLC 1.44
PANTHER ESCROW ISSUER LLC 1.36
UKG INC 1.34
Name Weight (%) Shares Market Value Coupon (%) Maturity
Detailed Holdings and Analytics
Holdings are subject to change. Fund holdings and allocations shown are unaudited, and may not be representative of current or future investments. The Fund is actively managed and its details, holdings and characteristics will vary. Holdings shown should not be deemed as a recommendation to buy or sell securities. The user relies on this data at its own risk and neither BlackRock nor any other party makes any representations or express or implied warranties (which are expressly disclaimed) nor shall they incur any liability for any errors or omissions in the data.

Exposure Breakdowns

Exposure Breakdowns

as of Mar 28, 2024

% of Market Value

Type Fund Benchmark Net
as of Mar 28, 2024

% of Market Value

Type Fund Benchmark Net
as of Mar 28, 2024

% of Market Value

Type Fund Benchmark Net
as of Mar 28, 2024

% of Market Value

Type Fund Benchmark Net
Allocations subject to change.
as of Mar 28, 2024

% of Market Value

Type Fund Benchmark Net
as of Mar 28, 2024

% of Market Value

Type Fund Benchmark Net
as of Mar 28, 2024

% of 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

David Delbos
David Delbos
Managing Director

David Delbos, Managing Director, is the Co-Head of U.S. High Yield within BlackRock's Global Credit team.

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.

Ashley Schulten
Ashley Schulten
Head of ESG Investment, Global Fixed Income

Ashley

Read More

Ms. Schulten is a portfolio manager on ESG tilted funds and leads sustainable investing efforts within the fundamental fixed income division. She sits on the Fundamental Fixed Income Executive Committees and the firms Voting Issues Advisory Committee. Additionally, she represents BlackRock at the TCFD and on the Executive Committee of the ICMA Green and Social Bond Principles where she was a founding member. Previous to BlackRock, Ms. Schulten spent 20 years as a sell side interest rate and options trader. She is an Aspen Institute First Movers Fellow and sits on the board of the Mianus River Gorge, the first land conservancy project for the Nature Conservancy.

Portfolio Manager

Literature

Literature

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