- Out of the 251 BlackRock funds analysed, 61 consistently outperformed their sector peers, earning a top 4 or 5-star rating.
- 55.8% of BlackRock’s funds have a history of underperformance, with 140 funds receiving a poor one or two-star rating.
- The BlackRock Aquila Connect US Equity Pn fund has been one of the top performers with the highest returns over the past 1, 3 & 5 years in the PN North American equities sector.
- The BlackRock Aquila Life 2050 Index Pn 1 fund has consistently ranked among the worst performers within the PN Flexible Investment sector over the past 1, 3 & 5 years.
BlackRock is the world’s largest asset manager, with over $10 trillion in assets under management. Despite their dominant market position, our independent analysis reveals that not all BlackRock funds are delivering competitive returns for investors.
While some BlackRock funds have earned top performing ratings our analysis identifies that a significant portion have underperformed compared to their sector peers.
In this detailed review, we analyse the performance of 251 BlackRock funds available to UK investors, assessing their sector rankings over 1, 3, and 5-year periods. We will identify the best-performing BlackRock funds and highlight those that have consistently underperformed, helping you make more informed investment decisions.
BlackRock Fund Performance Summary
We analysed the performance and sector ranking of 251 BlackRock funds over the past 1, 3 & 5 years, providing each with an overall performance rating.
Our analysis of these 251 funds revealed that only 24.3% received a top performing 4 or 5 star rating.
However, 55.8% of the funds underperformed, with 88 receiving a two-star rating and 52 earning just one star. These figures indicate that a substantial portion of the funds have failed to deliver competitive results compared to their sector peers.
Best Performing BlackRock Funds
The table below highlights the 5 best-performing in-house BlackRock funds for UK investors, providing a detailed overview of their performance over the most recent 1, 3, and 5-year periods.
These funds have consistently been among the top performers within their respective sectors, which has earned them each a top 5 star rating.
BlackRock ACS World ex UK Equity Tracker Fund
Launched on 24 April 2017, the BlackRock ACS World ex UK Equity Tracker X1 Acc fund currently manages a substantial £8.08 billion in assets. The fund aims to provide returns by closely tracking the performance of the FTSE Developed ex UK Custom ESG Screened Index. This index includes large-cap companies from developed markets outside the UK that pass certain environmental, social, and governance (ESG) criteria.
Impressively the fund has demonstrated strong performance over recent years, delivering returns of 21.07% over 1 year, 28.36% over 3 years, and 72.49% over 5 years. These figures surpass the average returns of the IA Global sector, which stood at 16.64%, 13.62%, and 52.22% over the same periods, respectively.
The fund’s passive, index-tracking strategy has made it a cost-effective solution for investors seeking global diversification, especially in regions like the United States, Japan, and the Eurozone. It offers exposure to major sectors such as technology, healthcare, and financial services, with leading companies like Apple, Microsoft, and NVIDIA driving its growth.
Its low-cost structure and focus on large-cap developed markets make it a strong option for long-term growth. Additionally, the fund’s ESG criteria is a plus for those wanting to support sustainable businesses while enjoying broad global exposure.
BlackRock ACS World Low Carbon EQ Tracker
The BlackRock ACS World Low Carbon EQ Tracker X2 fund is a significant global equity investment vehicle, managing £6.68 billion in assets. Its primary goal is to track the MSCI World Low Carbon Target Reduced Fossil Fuel Select Index, which includes companies committed to reducing their carbon footprint. This approach makes the fund particularly attractive to investors seeking both global equity exposure and sustainability.
The fund has shown notably strong performance, consistently ranking among the top performers in the IA Global sector. Over the past year, it delivered a return of 21.93%, significantly exceeding the sector average of 16.64%. Its three-year performance is even more impressive, with a return of 28.16% compared to the sector average of 13.62%. Over five years, the fund achieved 70.22%, outperforming the sector average of 52.22%.
This consistent performance underscores its effectiveness in providing solid returns while maintaining a focus on environmental, social, and governance (ESG) factors.
Employing a passive investment strategy, the fund closely replicates the Index's composition. With a low ongoing charge of just 0.02%, it provides cost-effective access to a wide range of global companies from different sectors and regions.
BlackRock Managed Volatility IV Fund
The BlackRock Managed Volatility IV C is one of the best performing BlackRock funds, with a proven track record of outperforming its sector across various timeframes. In the last year, the fund delivered a 16.03% return, surpassing the sector average of 13.13%. Its three-year performance was particularly notable, with a return of 27.80%, which ranked 2nd out of 180 funds in its sector.
Over 5 years, the fund returned 45.96%, well above the sector average of 21.71%. These results highlight the fund’s ability to provide robust returns even in competitive markets and place it among the top performers in the IA Volatility Managed sector.
The fund is actively managed and aims to deliver steady returns while keeping volatility (i.e. the degree of fluctuation of the returns) at or around 15%. To achieve its objective the fund invests in a diversified mix of global equities, equity-related securities, money-market instruments, cash, and other liquid assets. In periods of market uncertainty, the fund has the flexibility to hold up to 80% in cash, helping to reduce risk and maintain stability.
A major contributor to the fund's success is its strategic use of derivatives, such as equity futures and foreign exchange contracts, to manage risk, reduce costs, and boost income. These tools also provide leverage, enhancing market exposure beyond its asset value. This effective combination of growth-focused strategies and risk management has been key to the fund's strong performance, making it an appealing choice for investors seeking steady returns with controlled volatility.
BlackRock Aquila Connect US Equity Fund
The BlackRock Aquila Connect US Equity Pn fund invests in the shares of US companies and is designed to achieve returns that align with the FTSE All-World USA Index. With £286.95 million under management, It mainly focuses on large companies in sectors like technology, healthcare, and financials.
The fund’s passive strategy, which closely tracks its index, has contributed to its robust performance. Over the past year, it delivered a return of 24.09%, outperforming the sector average of 20.37%. Over three years, it grew by 35.38%, well above the sector average of 25.19%. Its 5-year growth of 91.48% also exceeded the sector average of 73.69%, positioning it as one of the best performers in the PN North America Equities sector.
These impressive results highlight the fund’s ability to consistently outperform its peers and capture substantial growth in the U.S. equity market, making it a cost-effective option for long-term investors.
BlackRock Aquila Connect World Ex UK Equity Fund
The BlackRock Aquila Connect World Ex UK Equity Pn fund, launched on 11 July 2002, currently oversees the £415.60 million of clients' assets. Its primary objective is to track the FTSE All-World Developed ex-UK Index, by investing in overseas companies based on their market capitalisation. The fund provides exposure to major global markets while excluding the UK, with a significant allocation to the United States (72%).
Its performance has consistently exceeded sector averages across multiple time horizons. Over one year, the fund returned 20.89% compared to the sector average of 18.56%. The three-year growth was 28.27%, more than the sector average of 19.31%. Over the five years, the fund achieved 72.31% growth, surpassing the sector average of 52.39%.
This success stems from the fund's low-cost, index-tracking approach and its significant exposure to high-growth US sectors such as technology and healthcare.
Worst Performing BlackRock Funds
As highlighted in our performance analysis, 140 funds within the BlackRock range have underperformed relative to their sector peers.
Below, we discuss the 5 worst-performing in-house BlackRock funds, each of which has received a poor one-star rating. We provide an overview of their performance, sector information, and the reasons behind their underperformance.
BlackRock Asia D Acc
The BlackRock Asia D Acc fund is classified within the IA Asia Pacific Excluding Japan sector, where it aims to provide long-term returns (5 or more years) by investing 70% of assets in equities of companies based in Asia, excluding Japan. The fund focuses on capturing growth in economies like China, India, Taiwan, and South Korea, which are seen as key drivers of regional growth.
Despite its growth-oriented strategy, the fund has faced significant challenges in recent years and ranked among the worst-performing BlackRock funds. Over the past year, it registered a return of 6.75%, which is below the sector average of 13.07%. The fund's 3-year performance further deteriorated, with a loss of -5.22%, placing it near the sector's lowest ranks. Over a 5-year horizon, the fund continued to underperform, achieving a return of only 14.55%, significantly below its 25.53% sector average.
Several factors have contributed to the fund's underperformance. As an actively managed fund with a high ongoing charge, it faces the additional burden of higher fees, which can erode returns. The heavy reliance on markets like China and sectors like technology has led to volatility, especially in the wake of regulatory crackdowns and economic slowdowns in China. Additionally, geopolitical risks and economic instability across Asia (excluding Japan) have further impacted its ability to perform well during volatile periods.
BlackRock Emerging Markets D Acc
The BlackRock Emerging Markets D Acc is designed to deliver a long-term return on investment (over 5 years or more) by increasing the value of its assets. To achieve this, the fund invests at least 70% of its total assets in equities or equity-related investments of companies incorporated or listed in emerging markets.
This £498.64 million fund has managed to return only 4.52% growth over the past year and is ranked among the worst performer in the Global Emerging Markets sector. Over the past 3 years, this fund posted a negative growth of -15.51%, compared to the sector average of -0.79%. The 5-year performance was also poor, with a return of 6.90%, well below the sector average of 19.85%.
The fund's ongoing underperformance reflects the challenges it faces in navigating the volatile and unpredictable nature of emerging markets. Key reasons for its poor returns include concentrated investments in high-risk sectors and specific stocks that have not met expectations, causing the fund to lag significantly behind its peers. Liquidity risks can affect investment prices significantly, while currency fluctuations expose the fund to additional risks. Furthermore, global challenges such as inflation and rising interest rates have dampened growth prospects in these markets. Collectively, these issues have created a challenging environment for the fund, hindering its ability to deliver competitive returns.
BlackRock GF India D4
The BlackRock GF India D4 GBP fund currently manages £468.80 million in assets and has consistently ranked as one of the worst performers within the IA India sector.
The fund’s goal is to maximise returns through a combination of capital growth and income generation by investing at least 70% of its assets in the equity securities of companies domiciled in India or those conducting significant business there. It also invests through a subsidiary wholly owned by BlackRock Global Funds.
Although India's status as one of the fastest-growing economies, the fund has underperformed compared to its peers. The past 12 months have been a particularly challenging time for this fund, as it returned growth of 15.75% compare to the sector average of 24.51% and ranked 24th out of 25 funds. Its 3-year performance also lagged, with a return of 19.95%, compared to the sector average of 37.22%. Over 5 years, the fund delivered 37.22%, far below the sector's average of 89.19%, placing it near the bottom of the sector.
The fund struggled due to market volatility that hindered its ability to capitalise on growth opportunities in the Indian economy. Despite investing in leading companies like Infosys and Reliance Industries, the fund's performance was impacted by misalignment with high-performing sectors. Additionally, cautious risk management may have limited returns during market rallies, resulting in significant poor performance in the Indian subcontinent sector.
BlackRock Managed Volatility Fund
The BlackRock Managed Volatility C fund focuses on maintaining portfolio volatility of around 5% while while also aiming to provide returns through a combination of equity and fixed income investments. This strategy aims to balance growth opportunities with reduced risk.
The fund adjusts its asset allocation based on market conditions, reducing exposure during turbulent times and increasing it when the market stabilises.
However, despite its risk-managed approach, the fund's performance has consistently underperformed in the IA Volatility managed sector. Over the past year, it returned 8.62%, significantly lower than the sector average of 13.13%. Its 3-year performance was more concerning, with a loss of -3.14%, while the sector average was 6.62%. The 5-year performance was also disappointing, with a return of 0.17%, ranking it among the lowest in its sector.
The fund’s strict focus on low volatility has led to missed opportunities during market rallies. Additionally, significant exposure to fixed-income securities and cash has limited its growth, especially during periods of rising inflation and low interest rates, when these assets typically underperform. This approach, combined with broader market correlations, has made the fund vulnerable to value fluctuations during economic downturns.
BlackRock Aquila Life 2050 Index Pn
The BlackRock Aquila Life 2050 Index Pn 1 fund is a part of the PN Flexible Investment sector, primarily designed for long-term investors aiming for retirement around the year 2050. Its goal is to provide long-term capital growth by outpacing inflation, while taking on a higher level of investment risk compared to other funds in BlackRock’s Governed Portfolio range.
The fund employs a passive management strategy, tracking a diversified index that includes a mix of equities and bonds. In its earlier years, the fund prioritises growth by allocating more heavily to equities. As the retirement date approaches, it gradually shifts towards more conservative investments, such as bonds, to reduce risk. This glidepath approach helps balance growth potential with the need for increased stability as retirement nears.
While it offers potential for higher long-term returns, it has recently underperformed due to exposure to fixed-income assets and market conditions.
Over the past 12 months, the fund returned only 4.54%, well below the sector average of 14.08%. The three-year performance has been particularly alarming, with a dramatic decline of -50.91%, ranking 549th out of 549 funds in its sector. Similarly, over 5 years, the fund recorded a return of -48.34%, again placing it last in the sector rankings. These figures highlight the fund's struggles and place it among the poorest performers within BlackRock's range and its sector overall.
Summary
As BlackRock continues to maintain its position as the world’s largest asset manager, it holds substantial investments across various sectors, with a strong focus on technology. Its major holdings include industry giants such as Apple, Microsoft, Amazon, Nvidia, and Google, reflecting its significant role in driving innovation and market growth.
Our analysis of 251 BlackRock funds shows that 61 funds have received a 4 or 5-star rating, proving the firm's ability to deliver strong returns in part of its portfolio. These best performing funds reflect BlackRock’s expertise in navigating market trends and creating value for investors.
However, like all fund managers, BlackRock also manages a selection of funds that have underperformed, with 55.8% receiving low 1 or 2 star performance ratings, indicating consistent struggles relative to their sector peers.
While BlackRock offers a wide variety of in-house funds, our analysis underscores that no single fund manager dominates in terms of fund performance. It is essential to distinguish between the top-performing funds and the underperformers, regardless of the fund provider, in order to maximise returns.
As this report highlights, while BlackRock provides some excellent investment opportunities, careful research is essential to make informed choices and achieve the best possible results.
