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BlackRock High Yield Fund
TICKER
ASSETS
BHYIX
$ 26.6 billion
PERFORMANCE YTD 1 yr . 3 yr . 5 yr . 10 yr . 15 yr . 1.48 % 10.26 % 4.95 % 4.57 % 5.11 % 6.69 %
TOP 5 HOLDINGS iShares Broad USD High Yield Corporate Bond ETF ; Venture Global LNG Inc .; Cloud Software Group Inc .; HUB International LTD ; TransDigm Inc .
CONTACT INFO 800-441-7762 blackrock . com
CREDIT QUALITY ( As a % of portfolio )
AAA 2.66 % BBB 3.59 % BB 29.52 % B 46.97 % Below B 15.56 % Not Rated 1.70 %
Performance and AUM figures as of 2 / 5 / 25 . Holdings as of 12 / 31 / 24 . Performance figures are for the institutional share class . Sources : BlackRock and Morningstar .
A High-Yield Fix For Fixed-Income Uncertainty
The BlackRock High Yield Fund ’ s flexible approach has generated steady returns . By Jeff Schlegel
FIXED INCOME IS TRYING TO FIND ITS FOOTING these days . What seemed like a clear path in the latter part of last year — in the form of downward trajectories in both inflation and interest rates — has been replaced in early 2025 with a rocky trail marked by tariff-stoked inflation fears and the Federal Reserve ’ s pause in interest rate cuts .
The fixed-income space might seem muddled right now , but then again it ’ s rarely smooth sailing . And veteran fixed-income managers who ’ ve navigated through rough seas before are ready for whatever comes . That includes Mitchell Garfin and David Delbos , the longtime portfolio managers of the BlackRock High Yield Fund , which has consistently been one of the best performers in its category .
According to Morningstar , the fund has been a top-quartile performer in its high-yield bond category during each measurable period going back 15 years . It ranks as the fourth-best fund overall for its annualized returns during the 15-year time frame , which dovetails with Garfin ’ s arrival as a manager in late 2009 . Delbos became one of the fund ’ s managers five years later . Two other managers at the fund departed two years ago , and Garfin and Delbos have been running the show since then .
The duo believes the high-yield asset class is well positioned in the current environment . “ The biggest focus is income generation in the portfolio ,” Garfin says . “ High yield is earning a little north of 7 %, which is compelling relative to other risk assets within fixed income .”
In addition , they posit that high-yield bonds have shed their hurly-burly , volatile image and evolved into a more mature asset class . “ From several perspectives — ratings , leverage and most importantly , the quality of companies — the high-yield market is as high quality as it ’ s ever been ,” Garfin offers . “ As a result , we anticipate the high-yield market to trade at structurally lower spreads than in the past and have fewer defaults over a cycle .”
44 | FINANCIAL ADVISOR MAGAZINE | MARCH 2025 WWW . FA-MAG . COM