BlackRock Sterling Short Duration Credit Fund

Sustainable, Responsible &/or ESG Policy:

Objectives and Investment Policy

The Fund aims to provide a return on your investment over a 1-3 year period (generated through an increase to the value of the Fund’s assets and/or income received from those assets) of 1.5% per annum (gross of fees) over the return of 3 Month Sterling Overnight Index Average Rate (SONIA), whilst incorporating the ESG commitments described below

The Fund invests at least 50% of its assets in Sterling denominated fixed income (FI) securities (such as bonds) issued by companies and supranationals (e.g. the International Bank for Reconstruction and Development).

The Fund may invest in a full range of available FI securities globally, including those that are non-Sterling denominated, investment grade or non-investment grade (i.e. securities which have a relatively low credit rating or which are unrated) and/or issued by governments and government agencies. Non-investment grade FI securities are expected to be limited to 10% of total assets. The Fund is expected to invest in FI securities that mature (i.e. the date on which the principal amount of a bond is to be repaid in full) within 5 years or less at the time of investment but may, in certain market conditions, invest in FI securities with a longer maturity.

The Fund may also invest in other funds, cash and money market instruments (i.e. debt securities with short-term maturities) or assets that can be turned into cash quickly.

The IM may also invest directly in derivatives (i.e. investments the price of which is based on one or more underlying assets) for investment purposes and for efficient portfolio management purposes. The IM will use derivatives to reduce the effect of exchange rate fluctuations between any non-Sterling denominated assets and Sterling.

The ESG commitments applied by the investment manager (IM) when seeking to achieve the Fund's investment objective comprises: (i) applying the BlackRock EMEA Baseline Screens; and (ii) seeking to reduce the carbon emission intensity score of the Fund relative to the ICE BAML 1-5 Year Global Corporate Index (Index).

The Fund applies the BlackRock EMEA Baseline Screens whereby the IM excludes direct investment in corporate issuers (only) which have exposure to, or ties with, sectors including controversial weapons, nuclear weapons, civilian firearms, fossil fuels and tobacco, and issuers deemed to have breached one or more of the UN Global Compact Principles (Screens). Further details regarding the Screens are available in the Fund’s prospectus.

The Fund also actively aims to achieve, in respect of only the corporate issuers (i.e. companies) in which it invests, a carbon emission intensity score that is 20% lower than the Index, calculated on a quarterly basis.

In seeking to achieve the Fund's carbon emission reduction aim, the IM uses a proprietary methodology to assess all issuers and issues based on the extent to which they are associated with positive externalities (for example, issuers rapidly decarbonising) or negative externalities (for example, higher carbon emitters). The IM then weights the Fund’s portfolio towards the former and away from the latter. However, the Fund may have exposure to investments that have negative externalities and the IM makes no commitment in relation to the extent by which it will weight the Fund's portfolio towards investments with positive externalities and away from investments with negative externalities.

The Fund is actively managed. The IM has discretion to select the Fund’s investments and is not constrained by any benchmark. 3 Month SONIA compounded in arrears + 1.5% should be used by unitholders to compare the performance of the Fund. Compounding in arrears is a methodology that compounds daily values of the overnight rate throughout the relevant term period (i.e. 3 Months). The Fund’s carbon emission intensity score is measured against the Index. The Fund also has a comparator benchmark of iBoxx GBP Corporates 0-5 Benchmark Index which can be used by unitholders as an alternative performance measure to assess performance in the Fund. This benchmark has been chosen taking into account the nature of the assets in which the Fund invests.

(Source: KIID, as at January 2026)

SDR Labelling:

Unlabelled - promotes sustainable characteristics (has CFD)

SDR Literature:

• Consumer Facing Disclosure