1 day Ago
Eoneren Average annual total returns (%) as of 9/30/24 3Q24 (not annualized) YTD (not annualized) 1 Year 3 Years 5 Years 10 Years Institutional 1 1.97 6.07 9.
26 6.14 5.24 4.
50 Investor A (Without Sales Charge) 1.91 5.98 9.
11 5.89 4.99 4.
23 Investor A (With Sales Charge) -0.64 3.33 6.
39 5.00 4.46 3.
96 Morningstar Bank Loan Category Avg. 2.03 6.
12 9.29 5.21 4.
51 3.82 S&P/LSTA Leveraged Loan[2] 2.04 6.
54 9.59 6.47 5.
74 4.86 Click to enlarge Expenses for Institutional shares: Total 0.70% ; Net, Including Investment Related Expenses (dividend expense, interest expense, acquired fund fees and expenses and certain other fund expenses) 0.
69% . For Investor A shares: Total 0.94% ; Net, Including Investment Related Expenses 0.
93% . Institutional and Investor A shares have contractual waivers with an end date of 06/30/2025 terminable upon 90 days' notice. For certain share classes, BlackRock may voluntarily agree to waive certain fees and expenses in which the adviser may discontinue at any time without notice.
Expenses stated as of the fund's most recent prospectus. Data represents past performance and is no guarantee of future results. Investment returns and principal values may fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.
All returns assume reinvestment of dividends and capital gains. Current performance may be lower or higher than that shown. Refer to Investment Management & Financial Services | BlackRock for most recent month-end performance.
Investment returns reflect total fund operating expenses, net of all fees, waivers and/or expense reimbursements. Index performance is shown for illustrative purposes only. It is not possible to invest directly in an unmanaged index.
Share classes have different sales charges, fees and other features. Returns with sales charge reflect deduction of current maximum initial sales charge of 2.5% for Investor A shares.
Institutional shares have no front- or back-end load. Institutional shares have limited availability and may be purchased at various minimums. See prospectus for details.
Net Expenses Excluding Investment Related Expenses for Institutional shares: 0.67% ; for Investor A shares: 0.91% .
Click to enlarge Commentary as of 09/30/24 The fund posted returns of 1.97% (Institutional shares) and 1.91% (Investor A shares, without sales charge) for the third quarter of 2024.
Liquid products contributed to performance during the quarter. Selection in B2 rated securities was a strong driver of returns, while selection in B3 and CCC rated securities detracted. Strong selection in the technology and wirelines sectors was beneficial, while selection in the food & beverage sector weighed on returns.
Given active primary markets, we deployed capital via new issues and reduced some exposure to liquid products. Specifically, we added to opportunities in B2 rated securities. Top 10 holdings (%) Cloud Software Group Inc 1.
29 Powershares Senior Loan Portfolio 1.07 Medline Borrower Lp 0.98 Alliant Holdings Intermdiate Llc 0.
91 Dun & Bradstreet Corporation (the) ( DNB ) 0.89 Transdigm Inc ( TDG ) 0.88 Allied Universal Holdco Llc 0.
86 Dynasty Acquisition Co Inc 0.82 Fertitta Entertainment Llc 0.76 Assuredpartners Inc 0.
76 Click to enlarge Investment approach A portfolio of non-investment grade floating rate loans, focused on companies that can provide investors a high level of floating rate income. Employs a research intensive, credit-focused investment style seeking high-quality loans with attractive risk-adjusted returns. Contributors Detractors Liquid products (total return swaps, exchange-traded funds, and high yield bonds) contributed as they performed well throughout the quarter.
By credit quality, selection in B2 rated securities was a strong driver of returns. From a sector perspective, strong selection in technology and wirelines was additive. Security selection in B3 and CCC rated securities detracted from performance.
By sector, security selection in the food & beverage, media & entertainment, and chemicals sectors hampered returns the most. Click to enlarge Further insight Investors who continue to time markets miss out on loan market yields of over 9%. It is not too late, as the Federal Reserve's interest rate cuts will likely be measured and shallow, which should create a tailwind for loan returns.
Loans also offer protection from interest rate volatility, which is crucial in a volatile rates market. The loan market remains compelling, with a more than 8% average coupon, strong fundamentals, and support from limited supply and high demand. While spreads of 400-450 basis points are not cheap, yields of around 9.
50% and market volatility present opportunities for skilled active management to generate positive performance. Important Risks: The fund is actively managed and its characteristics will vary. Bond values fluctuate in price so the value of your investment can go down depending on market conditions.
Holdings shown should not be deemed as a recommendation to buy or sell securities. Corporate loan values fluctuate in price so your investment can go down depending on market conditions. Corporate loans may be illiquid, affecting the fund's ability to realize net asset value in the event of a liquidation of assets.
The fund may invest in non-U.S. borrowers, which involves risks including fluctuation in foreign exchange rates, political and economic developments.
Corporate loans in the fund's portfolio typically are not rated or rated non-investment-grade(below Baa by Moody's or BBB by Standard& Poor's). These corporate loans generally involve greater risks to principal and income. The fund may use derivatives to hedge its investments or to seek to enhance returns.
Derivatives entail risks relating to liquidity, leverage and credit that may reduce returns and increase volatility. The opinions expressed are those of the fund's portfolio management team as of September 30, 2024, and may change as subsequent conditions vary. Information and opinions are derived from proprietary and nonproprietary sources deemed by BlackRock to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy.
BlackRock provides compensation in connection with obtaining or using third-party ratings and rankings. 1 The performance information for periods prior to the inception date of the Institutional shares (5/18/11) shows the performance of the fund's Investor A shares. The performance of the Institutional share class would be substantially similar to Investor A shares because the Institutional share class and Investor A shares invest in the same portfolio of securities and performance would only differ to the extent that the Institutional share class and Investor A shares have different expenses.
See the fund prospectus for more details. 2 The S&P/LSTA Leveraged Loan Index is a market-weighted index that tracks the performance of institutional leveraged loans by monitoring spreads and interest payments to gauge the overall health of the institutional loan markets. †† The Morningstar Rating TM for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history.
Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.
5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics.
The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. The fund was rated against the following numbers of U.
S.-domiciled Bank Loan funds over the following time periods:209 in the last 3 years, 204 in the last 5 years and 166 in the last 10 years. With respect to these Bank Loan funds, the fund received a Morningstar Rating of 4, 4 and 5 stars for the 3-, 5- and 10-year periods, respectively.
Other classes may have different performance characteristics. You should consider the investment objectives, risks, charges and expenses of the fund carefully before investing. The prospectus and, if available, the summary prospectus contain this and other information about the fund and are available, along with information on other BlackRock funds, by calling 800-882-0052 or from your financial professional.
The prospectus should be read carefully before investing. ©2024 BlackRock, Inc. or its affiliates.
All Rights Reserved. BLACKROCK is a trademark of BlackRock, Inc. or its affiliates.
All other trademarks are those of their respective owners. Prepared by BlackRock Investments, LLC, member FINRA. Not FDIC Insured • May Lose Value • No Bank Guarantee 10/24 - Floating Rate Income Fund Click to enlarge Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.
This post originally appeared on BlackRock..
