BlackRock Core Bond Fund

Investor Summary

The fund is managed by Rick Rieder, Chief Investment Officer of Global Fixed Income at BlackRock since 2010, who oversees approximately $2.7 trillion in assets and was named 2023 Outstanding Portfolio Manager by Morningstar. Rieder was inducted into the Fixed Income Hall of Fame in 2013 and received Global Unconstrained Fixed Income Manager of the Year recognition in 2015 by Institutional Investor. He holds a BBA in Finance from Emory University (1983) and MBA from The Wharton School (1987). Prior to BlackRock, Rieder was President and CEO of R3 Capital Partners and spent 20 years at Lehman Brothers (1987-2008) in senior roles including Head of Global Principal Strategies. The current management team includes Chi Chen (Managing Director since October 2022), Sam Summers (Director since September 2025), Siddharth Mehta (Director since September 2025), and Russell Brownback (Managing Director since September 2025). This experienced team provides continuity and specialized expertise across fixed income markets.

Fund Strategy

The fund seeks conservative long-term total returns by investing primarily in high-quality, traditional bonds while maintaining portfolio duration within +/- 20% of the Bloomberg U.S. Aggregate Bond Index benchmark. The strategy involves investing at least 80% of assets in investment-grade bonds including corporate bonds, U.S. government and agency securities, and mortgage-related securities. BlackRock's approach emphasizes active management through fundamental credit analysis, duration management, and yield curve positioning to generate consistent returns while managing downside risk. The fund employs a global opportunity set with ability to invest up to 25% in foreign issuers including emerging markets. Risk management is central to the philosophy with diversification across 2,000+ securities and conservative credit quality focus. The management team leverages BlackRock's 540 global fixed income research analysts and over 30 years of experience. The philosophy centers on 'making a little money a lot of times' through flexible, active approaches. Derivatives are used for both hedging and return enhancement within strict risk parameters.

ANNUALIZED SINCE INCEPTION	QUARTERLY	YTD
1.47%	-0.31%	-0.31%

Executive Summary

BlackRock's Core Bond Fund posted a -0.25% return in Q1 2026, underperforming its benchmark amid challenging market conditions. The fund's overweight duration position in the front end of the yield curve detracted from performance as rates sold off due to inflation concerns and oil supply disruptions that created macroeconomic uncertainty. However, structured products contributed positively given resilient yields and spreads in high-quality segments. The managers reduced the fund's overweight duration position and lowered agency MBS exposure while decreasing U.S. investment grade credit to underweight. They adopted a more defensive posture across spread sectors while maintaining flexibility to redeploy capital at more attractive entry points. The fund continues to favor high-quality structured products and maintains a U.S. steepening bias, believing the Federal Reserve could decrease rates by more than investors expect. The portfolio emphasizes seniority within structured products and takes a selective approach to emerging markets amid the elevated uncertainty.

Core Thesis

The fund maintains a defensive positioning in fixed income markets while preserving flexibility to capitalize on more attractive entry points, favoring high-quality structured products and front-end duration exposure based on expectations that the Federal Reserve could cut rates more than markets anticipate.

Forward Outlook

The fund maintains a U.S. steepening bias and continues to favor the front end of the yield curve. The managers have adopted a more defensive posture across spread sectors amid elevated macroeconomic uncertainty, emphasizing flexibility to redeploy capital at more attractive entry points. They continue to prefer seniority within structured products and take a selective approach to emerging markets.

Date	Letter	Tickers	Keywords	Pitches	Quick Takes
May 6 2026	2026 Q1	-	Agency MBS, credit, duration, fixed income, inflation, rates, Structured products	-	BlackRock's Core Bond Fund reduced duration and credit exposure after underperforming in Q1 2026 due to rate sell-off from inflation concerns and oil supply disruptions. The fund maintains defensive positioning while preserving flexibility for redeployment, favoring high-quality structured products and front-end exposure based on expectations for more Fed rate cuts than markets anticipate.
Feb 11 2026	2025 Q4	EQT, GS, JPM, MS, PCG	credit, duration, Fed policy, fixed income, MBS, rates	-	BlackRock's Core Bond Fund increased duration positioning in Q4 2025, concentrating exposure in the front and belly of the yield curve based on expectations that Fed rate cuts will exceed market pricing. Agency MBS and structured products drove performance as spreads tightened, while the fund maintains tactical rotation across sectors for attractive income opportunities.
Nov 3 2025	2025 Q3	BAC, EQT, GS, JPM, MS	Agency MBS, credit, duration, emerging markets, fixed income, Securitized, yield curve	-	BlackRock's Core Bond Fund delivered 2.15% returns in Q3 2025 by positioning neutrally on duration while favoring the belly and long end of the yield curve. Agency MBS and emerging market debt contributed positively, though U.S. rates exposure detracted. The manager expects yield curve flattening as terminal rates settle below market expectations.
Aug 11 2025	2025 Q2	EQT, FANG, GS, JPM, MS	credit, duration, fixed income, Mortgage, rates, Securitized	-	BlackRock's Core Bond Fund delivered strong Q2 performance through active duration management and credit selection. The fund increased front-end rate exposure while reducing longer-duration allocations, anticipating yield curve steepening driven by fiscal concerns. Securitized products and selective investment grade credit contributed to returns as spreads tightened across quality assets.
Mar 31 2025	2025 Q1	FANG, GS, JPM, MS, VICI	Bonds, credit, duration, fixed income, MBS, rates	-	BlackRock's Core Bond Fund delivered 2.75% returns in Q1 2025 by tactically reducing duration risk and rotating into high-quality securitized assets. The fund shifted from overweight to underweight duration positioning while favoring front-end yields and increasing agency MBS exposure. Structured products and emerging market debt contributed while U.S. rates and credit detracted from performance.
Dec 31 2024	2024 Q4	FANG, GS, JPM, MS, VICI	Bonds, credit, duration, fixed income, Mortgages, rates	-	BlackRock's Core Bond Fund underperformed in Q4 2024 with overweight duration positioning aimed at balancing fiscal headwinds and incoming administration policies. Structured products and agency mortgages contributed while non-U.S. rates detracted significantly. The fund extended duration to 6.38 years, added front-end exposure, and maintains focus on high-quality securitized assets and agency mortgages.
Sep 30 2024	2024 Q3	FANG, GS, JPM, MS	Bonds, credit, duration, Fed policy, fixed income, rates	-	BlackRock's Core Bond Fund posted 5.11% Q3 returns through tactical duration and credit management. The fund shifted to underweight duration exposure, believing markets overpriced Fed rate cuts through 2025. Strong performance from investment grade credit and securitized assets offset duration positioning headwinds. Managers maintain quality focus while tactically rotating across spread sectors.
Jun 30 2024	2024 Q2	FANG, GS, MS, VICI	Bonds, credit, duration, fixed income, rates, yield curve	-	BlackRock's Core Bond Fund delivered 0.09% returns in Q2 through active duration management and credit selection. The fund moved overweight duration as economic data softened while maintaining overweight investment grade credit and agency MBS. Structured products and credit selection drove performance, though duration positioning created headwinds following mixed economic data and strong employment reports.

Date

Letter

Tickers

Keywords

Pitches

Quick Takes

May 6 2026

2026 Q1

Agency MBS, credit, duration, fixed income, inflation, rates, Structured products

BlackRock's Core Bond Fund reduced duration and credit exposure after underperforming in Q1 2026 due to rate sell-off from inflation concerns and oil supply disruptions. The fund maintains defensive positioning while preserving flexibility for redeployment, favoring high-quality structured products and front-end exposure based on expectations for more Fed rate cuts than markets anticipate.

Feb 11 2026

2025 Q4

EQT, GS, JPM, MS, PCG

credit, duration, Fed policy, fixed income, MBS, rates

BlackRock's Core Bond Fund increased duration positioning in Q4 2025, concentrating exposure in the front and belly of the yield curve based on expectations that Fed rate cuts will exceed market pricing. Agency MBS and structured products drove performance as spreads tightened, while the fund maintains tactical rotation across sectors for attractive income opportunities.

Nov 3 2025

2025 Q3

BAC, EQT, GS, JPM, MS

Agency MBS, credit, duration, emerging markets, fixed income, Securitized, yield curve

BlackRock's Core Bond Fund delivered 2.15% returns in Q3 2025 by positioning neutrally on duration while favoring the belly and long end of the yield curve. Agency MBS and emerging market debt contributed positively, though U.S. rates exposure detracted. The manager expects yield curve flattening as terminal rates settle below market expectations.

Aug 11 2025

2025 Q2

EQT, FANG, GS, JPM, MS

credit, duration, fixed income, Mortgage, rates, Securitized

BlackRock's Core Bond Fund delivered strong Q2 performance through active duration management and credit selection. The fund increased front-end rate exposure while reducing longer-duration allocations, anticipating yield curve steepening driven by fiscal concerns. Securitized products and selective investment grade credit contributed to returns as spreads tightened across quality assets.

Mar 31 2025

2025 Q1

FANG, GS, JPM, MS, VICI

Bonds, credit, duration, fixed income, MBS, rates

BlackRock's Core Bond Fund delivered 2.75% returns in Q1 2025 by tactically reducing duration risk and rotating into high-quality securitized assets. The fund shifted from overweight to underweight duration positioning while favoring front-end yields and increasing agency MBS exposure. Structured products and emerging market debt contributed while U.S. rates and credit detracted from performance.

Dec 31 2024

2024 Q4

FANG, GS, JPM, MS, VICI

Bonds, credit, duration, fixed income, Mortgages, rates

BlackRock's Core Bond Fund underperformed in Q4 2024 with overweight duration positioning aimed at balancing fiscal headwinds and incoming administration policies. Structured products and agency mortgages contributed while non-U.S. rates detracted significantly. The fund extended duration to 6.38 years, added front-end exposure, and maintains focus on high-quality securitized assets and agency mortgages.

Sep 30 2024

2024 Q3

FANG, GS, JPM, MS

Bonds, credit, duration, Fed policy, fixed income, rates

BlackRock's Core Bond Fund posted 5.11% Q3 returns through tactical duration and credit management. The fund shifted to underweight duration exposure, believing markets overpriced Fed rate cuts through 2025. Strong performance from investment grade credit and securitized assets offset duration positioning headwinds. Managers maintain quality focus while tactically rotating across spread sectors.

Jun 30 2024

2024 Q2

FANG, GS, MS, VICI

Bonds, credit, duration, fixed income, rates, yield curve

BlackRock's Core Bond Fund delivered 0.09% returns in Q2 through active duration management and credit selection. The fund moved overweight duration as economic data softened while maintaining overweight investment grade credit and agency MBS. Structured products and credit selection drove performance, though duration positioning created headwinds following mixed economic data and strong employment reports.

QUARTER	THEMES	TAGS
2026 Q1	Rates The fund reduced its overweight duration position concentrated in the front end of the yield curve due to rate sell-off from inflation concerns. The manager maintains a U.S. steepening bias, favoring the front end given their view that the Federal Reserve could decrease rates by more than investors expect.	Duration Yield Curve Federal Reserve Interest Rates Steepening
	Mortgage The fund lowered its overweight holding in agency MBS but tactical security selection within agency MBS contributed to performance. Middle and higher coupons were additive as increased rate volatility reduced refinancing risks.	Agency MBS Mortgage-Backed Securities Refinancing Coupons
	Oil Oil supply disruptions in March caused increased rate volatility and sharp oil price increases that hurt the European economy. These disruptions contributed to macroeconomic uncertainty affecting the fund's positioning.	Oil Prices Supply Disruptions Volatility European Economy
2025 Q4	Financials The Fund is currently substantially invested in the Financials sector, with performance closely tied to developments in this industry. Companies in the Financials sector may be adversely affected by changes in the regulatory environment and interest rate changes.	Banks Insurance Interest Rates Regulation
2025 Q3	Rates The fund adjusted duration to neutral and focused positioning on the belly and long end of the yield curve. The manager expects the yield curve may flatten amid expectations that terminal rates could settle below market pricing. U.S. rates exposure hampered performance as the Fed resumed rate cuts.	Duration Yield Curve Terminal Rates Fed Cuts Interest Rates
	Mortgage Agency mortgage-backed securities contributed to performance as spreads continued to tighten. The fund reduced its overweight exposure to agency MBS during the quarter while maintaining focus on high-quality securitized assets.	Agency MBS Securitized Spreads Mortgage Backed High Quality
2025 Q2	Rates The fund maintained a yield-curve-steepening bias and increased overweight duration positioning. They added exposure at the front-end of the yield curve while maintaining underweight allocations to the belly and long-end, anticipating weakness driven by fiscal deficit concerns and term premium expansion.	Duration Yield Curve Front End Term Premium Fiscal Deficit
	Credit The fund maintained underweight allocation to U.S. investment grade credit while increasing U.S. high yield credit exposure. Security selection in investment grade credit was additive, particularly allocations to high-quality media and energy issuers in the industrials sector.	Investment Grade High Yield Credit Spreads Industrials Media
2025 Q1	Rates The fund reduced top-line duration from an overweight position to a modest underweight. They preferred the front-end of the yield curve and held a steepening bias, believing the long-end might sell off due to fiscal deficit concerns. Throughout February, the yield curve flattened and rates rallied, causing the underweight position in the belly of the curve to detract from performance.	Duration Yield Curve Interest Rates Steepening Front End
	Mortgage The fund increased its agency MBS position to overweight during the quarter. However, U.S. agency mortgage-backed securities detracted from performance due to policy uncertainty and heightened rate volatility. The fund favored high-quality securitized exposure including commercial mortgage-backed securities which contributed positively.	MBS Agency Securitized CMBS Mortgage Backed
2024 Q4	Rates The fund held an overweight position in top-line duration to balance medium-term fiscal headwinds and perceived policy positions from the incoming U.S. administration. Non-U.S. rates positioning was the most notable detractor as European and U.K. rates sold off in reaction to strong economic data and political uncertainty. The fund shifted to an overweight duration position relative to benchmark as investors scaled back rate cut expectations for 2025.	Duration Yield Curve Fed Policy Rate Cuts Interest Rates
	Mortgage The fund reduced its overweight positions in agency mortgage-backed securities during the quarter. The overweight allocation to agency mortgages, specifically higher coupons, was beneficial to performance. The fund continues to hold an overweight position in agency mortgages.	Agency MBS Mortgage Backed Securities GNMA FHLM Coupons
2024 Q3	Rates The fund shifted from overweight to underweight duration exposure during the quarter, believing the market had overpriced the amount by which the Fed would lower rates through 2025. Duration positioning was the most notable detractor as the Fed's September rate cut caused rates to rally.	Duration Fed Yield Curve Rate Cuts Front End
	Credit The fund maintained overweight allocations to U.S. investment grade credit and favored seniority and high-quality names in securitized assets. Investment grade credit contributed to performance as rates rallied.	Investment Grade Spreads Credit Quality Securitized Agency MBS
2024 Q2	Rates The fund moved to an overweight top-line duration position, mainly by adding to its overweight exposure at the front and belly of the yield curve and moving to a flat position at the back end as economic data softened. Duration positioning detracted in May as rates rallied given softer economic data, but the move to overweight duration exposure in June was unhelpful following a surprisingly strong nonfarm payroll report.	Duration Yield Curve Interest Rates Fed Cuts Economic Data
	Credit The fund maintained overweight positions in U.S. investment grade credit and agency mortgage-backed securities. Security selection within investment grade credit was helpful as the fund increased its overweight exposure to the industrials sector and underweight allocation to the banks sector, taking advantage of some volatility after stronger-than-expected inflation data in April.	Investment Grade Credit Spreads Industrials Banks MBS

QUARTER

THEMES

Rates

The fund reduced its overweight duration position concentrated in the front end of the yield curve due to rate sell-off from inflation concerns. The manager maintains a U.S. steepening bias, favoring the front end given their view that the Federal Reserve could decrease rates by more than investors expect.

Duration Yield Curve Federal Reserve Interest Rates Steepening

Mortgage

The fund lowered its overweight holding in agency MBS but tactical security selection within agency MBS contributed to performance. Middle and higher coupons were additive as increased rate volatility reduced refinancing risks.

Agency MBS Mortgage-Backed Securities Refinancing Coupons

Oil

Oil supply disruptions in March caused increased rate volatility and sharp oil price increases that hurt the European economy. These disruptions contributed to macroeconomic uncertainty affecting the fund's positioning.

Oil Prices Supply Disruptions Volatility European Economy

2025 Q4

Financials

The Fund is currently substantially invested in the Financials sector, with performance closely tied to developments in this industry. Companies in the Financials sector may be adversely affected by changes in the regulatory environment and interest rate changes.

Banks Insurance Interest Rates Regulation

2025 Q3

Rates

The fund adjusted duration to neutral and focused positioning on the belly and long end of the yield curve. The manager expects the yield curve may flatten amid expectations that terminal rates could settle below market pricing. U.S. rates exposure hampered performance as the Fed resumed rate cuts.

Duration Yield Curve Terminal Rates Fed Cuts Interest Rates

Mortgage

Agency mortgage-backed securities contributed to performance as spreads continued to tighten. The fund reduced its overweight exposure to agency MBS during the quarter while maintaining focus on high-quality securitized assets.

Agency MBS Securitized Spreads Mortgage Backed High Quality

2025 Q2

Rates

The fund maintained a yield-curve-steepening bias and increased overweight duration positioning. They added exposure at the front-end of the yield curve while maintaining underweight allocations to the belly and long-end, anticipating weakness driven by fiscal deficit concerns and term premium expansion.

Duration Yield Curve Front End Term Premium Fiscal Deficit

Credit

The fund maintained underweight allocation to U.S. investment grade credit while increasing U.S. high yield credit exposure. Security selection in investment grade credit was additive, particularly allocations to high-quality media and energy issuers in the industrials sector.

Investment Grade High Yield Credit Spreads Industrials Media

2025 Q1

Rates

The fund reduced top-line duration from an overweight position to a modest underweight. They preferred the front-end of the yield curve and held a steepening bias, believing the long-end might sell off due to fiscal deficit concerns. Throughout February, the yield curve flattened and rates rallied, causing the underweight position in the belly of the curve to detract from performance.

Duration Yield Curve Interest Rates Steepening Front End

Mortgage

The fund increased its agency MBS position to overweight during the quarter. However, U.S. agency mortgage-backed securities detracted from performance due to policy uncertainty and heightened rate volatility. The fund favored high-quality securitized exposure including commercial mortgage-backed securities which contributed positively.

MBS Agency Securitized CMBS Mortgage Backed

2024 Q4

Rates

The fund held an overweight position in top-line duration to balance medium-term fiscal headwinds and perceived policy positions from the incoming U.S. administration. Non-U.S. rates positioning was the most notable detractor as European and U.K. rates sold off in reaction to strong economic data and political uncertainty. The fund shifted to an overweight duration position relative to benchmark as investors scaled back rate cut expectations for 2025.

Duration Yield Curve Fed Policy Rate Cuts Interest Rates

Mortgage

The fund reduced its overweight positions in agency mortgage-backed securities during the quarter. The overweight allocation to agency mortgages, specifically higher coupons, was beneficial to performance. The fund continues to hold an overweight position in agency mortgages.

Agency MBS Mortgage Backed Securities GNMA FHLM Coupons

2024 Q3

Rates

The fund shifted from overweight to underweight duration exposure during the quarter, believing the market had overpriced the amount by which the Fed would lower rates through 2025. Duration positioning was the most notable detractor as the Fed's September rate cut caused rates to rally.

Duration Fed Yield Curve Rate Cuts Front End

Credit

The fund maintained overweight allocations to U.S. investment grade credit and favored seniority and high-quality names in securitized assets. Investment grade credit contributed to performance as rates rallied.

Investment Grade Spreads Credit Quality Securitized Agency MBS

2024 Q2

Rates

The fund moved to an overweight top-line duration position, mainly by adding to its overweight exposure at the front and belly of the yield curve and moving to a flat position at the back end as economic data softened. Duration positioning detracted in May as rates rallied given softer economic data, but the move to overweight duration exposure in June was unhelpful following a surprisingly strong nonfarm payroll report.

Duration Yield Curve Interest Rates Fed Cuts Economic Data

Credit

The fund maintained overweight positions in U.S. investment grade credit and agency mortgage-backed securities. Security selection within investment grade credit was helpful as the fund increased its overweight exposure to the industrials sector and underweight allocation to the banks sector, taking advantage of some volatility after stronger-than-expected inflation data in April.

Investment Grade Credit Spreads Industrials Banks MBS

Date	Pitch Type	Author	Ticker	Company	Industry	Sub Industry	Bull / Bear	Exchange	Keywords	Action
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Investment Summary

Investor Summary

Fund Strategy

FUND PERFORMANCE AS OF 31st March 2026

Investor Letters

Latest Executive Summary:

Executive Summary

Core Thesis

Forward Outlook

Investment Themes

Rates

Mortgage

Oil

Financials

Rates

Mortgage

Rates

Credit

Rates

Mortgage

Rates

Mortgage

Rates

Credit

Rates

Credit

Investor Pitches

Current Portfolio as of ( 31st March 2026 )

Key Risks identified by Manager:

Key catalysts include:

Portfolio Implications

Ticker Commentary

Rick Rieder Top Holdings

Recent Buys (13F)

Recent Sells (13F)

13F Sector Summary

Portfolio Distribution

Latest 13D & 13G Filings

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BlackRock Core Bond Fund