In the second quarter of 2025, the BlackRock Credit Relative Value Fund demonstrated strong performance. The Institutional shares achieved a return of 2.75%, while the Investor A shares (excluding sales charge) yielded 2.63%.
During this period, the fund's absolute return strategies emerged as the most significant contributors to its positive results. Furthermore, both traditional and carry strategies also played a role in generating favorable returns. Geographically, the United States was the leading region in terms of performance contribution, with European markets also showing positive trends.
Looking ahead, the fund managers have proactively decreased their overall exposure. This reduction primarily focused on investment-grade corporate bonds, loans, and equity holdings across both the United States and Europe. This strategic shift reflects their anticipation of a potential slowdown in consumer activity and persistent macroeconomic and geopolitical uncertainties. The fund remains vigilant in navigating market dynamics to optimize future performance.