Lester Freeman
Investing in the BlackRock Liquidity Funds FedFund Institutional Shares fund is a big decision that requires careful consideration of the fund's objectives, risks, and expenses. The fund seeks to provide current income consistent with liquidity and stability of principal by investing primarily in U.S. Treasury bills, notes, and other obligations. While the fund offers a stable investment option, it's important to remember that share prices can fluctuate, and there are potential fees and risks associated with investing. It is always recommended to review the fund's prospectus and seek appropriate financial advice before making any investment decisions.
| Characteristics | Values |
|---|---|
| Investment Objective | Current income as is consistent with liquidity and stability of principal |
| Investment Type | Cash, U.S. Treasury bills, notes and other obligations issued or guaranteed as to principal and interest by the U.S. government, its agencies or instrumentalities, and repurchase agreements secured by such obligations or cash |
| Maturity | 397 days or less (with certain exceptions) |
| Average Maturity | 60 days or less |
| Average Life | 120 days or less |
| Net Asset Value (as of 18-Oct-2024) | $1.00 |
| 7 Day SEC Yield (as of 18-Oct-2024) | 4.78% |
What You'll Learn
The fund's investment objectives and strategies
The BlackRock Liquidity Funds FedFund Institutional Shares Fund (TFDXX) seeks current income as is consistent with liquidity and stability of principal. The fund invests at least 99.5% of its total assets in cash, U.S. Treasury bills, notes and other obligations issued or guaranteed as to principal and interest by the U.S. government, its agencies or instrumentalities, and repurchase agreements secured by such obligations or cash.
The fund invests in securities maturing in 397 days or less (with certain exceptions) and the portfolio will have a dollar-weighted average maturity of 60 days or less and a dollar-weighted average life of 120 days or less. The yield of the fund is not directly tied to the federal funds rate.
The fund may invest in variable and floating-rate instruments and transact in securities on a when-issued, delayed delivery or forward commitment basis. Under normal circumstances, the fund will invest at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in U.S. Treasury bills, notes and other obligations issued or guaranteed as to principal and interest by the U.S. Government, its agencies or instrumentalities, and repurchase agreements secured by such obligations.
The securities purchased by the fund are subject to the quality, diversification, and other requirements of Rule 2a-7 under the Investment Company Act of 1940, as amended (the "1940 Act"), and other rules of the Securities and Exchange Commission. The fund will only purchase securities that present minimal credit risk as determined by BlackRock, the fund's investment manager, pursuant to guidelines approved by the Trust's Board of Trustees.
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Performance and trailing returns
The BlackRock Liquidity Funds FedFund Institutional Shares Fund (TFDXX) has a 52-week low and high of $1.00. As of December 17, 2021, the fund had a year-to-date total return of N/A, a 3-year annualized total return of N/A, and a 5-year annualized total return of N/A. The fund's total return ranking is unavailable.
The fund's trailing performance over the past month, week, year, and other periods is also unavailable. However, its net income ratio is 0.02%, and it distributes dividends monthly.
FedFund invests primarily in U.S. Treasury bills, notes, and other obligations issued or guaranteed by the U.S. government, with a portfolio weighted average maturity of 60 days or less. The fund's investment objective is to seek current income consistent with liquidity and stability of principal.
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Portfolio characteristics
The BlackRock Liquidity Funds FedFund Institutional Shares Fund (TFDXX) invests at least 99.5% of its total assets in cash, US Treasury bills, notes and other obligations issued or guaranteed as to principal and interest by the US government, its agencies or instrumentalities, and repurchase agreements secured by such obligations or cash. The yield of the fund is not directly tied to the federal funds rate.
The fund invests in securities maturing in 397 days or less (with certain exceptions) and the portfolio will have a dollar-weighted average maturity of 60 days or less and a dollar-weighted average life of 120 days or less. The fund may invest in variable and floating-rate instruments and transact in securities on a when-issued, delayed delivery or forward commitment basis.
The fund will invest, under normal circumstances, at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in US Treasury bills, notes and other obligations issued or guaranteed as to principal and interest by the US Government, its agencies or instrumentalities, and repurchase agreements secured by such obligations. This policy is a non-fundamental policy of the fund and it will not change the policy without providing shareholders with at least 60 days' prior notice of any change.
The securities purchased by the fund are subject to the quality, diversification, and other requirements of Rule 2a-7 under the Investment Company Act of 1940, as amended, and other rules of the Securities and Exchange Commission. The fund will only purchase securities that present minimal credit risk as determined by BlackRock, the fund’s investment manager, pursuant to guidelines approved by the Trust’s Board of Trustees.
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Risks and expenses
Before investing in the BlackRock Liquidity FedFund, you should carefully consider the fund's objectives, risks, and expenses. The fund seeks to invest at least 99.5% of its total assets in cash, US Treasury bills, notes, and other obligations issued or guaranteed by the US government, its agencies, or instrumentalities. The fund may also invest in repurchase agreements secured by such obligations or cash.
The fund's share price can fluctuate, and when you sell your shares, they may be worth more or less than what you originally paid for them. The fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the fund's liquidity falls below the required minimums due to market conditions or other factors.
An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund's sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support at any time.
The fund is actively managed, and its portfolio characteristics are subject to change. BlackRock does not provide tax advice, and you should consult an independent tax advisor for advice based on your particular circumstances.
BlackRock has contractually agreed to waive or reimburse certain fees through June 30, 2025. These contractual waivers can be terminated with 90 days' notice. Additionally, the investment advisor or other service providers may voluntarily agree to waive or reimburse certain fees and expenses, which can be discontinued at any time without notice. When waivers or reimbursements are in place, the fund's operating expenses are reduced, and total returns to shareholders increase.
Additional Risks
In addition to the risks mentioned above, the following factors could cause actual results to differ materially from forward-looking statements or historical performance:
- Business initiatives and strategies, including their introduction, withdrawal, success, or timing.
- Political, economic, or industry conditions, including changes in interest rates, foreign exchange rates, or financial and capital markets.
- The relative and absolute investment performance of BlackRock's investment products.
- Increased competition and its impact.
- Capital improvement projects and their impact.
- Future acquisitions or divestitures and their impact.
- The unfavorable resolution of legal proceedings.
- Share repurchases and their timing and extent.
- Technological changes, the adequacy of intellectual property protection, and their impact.
- Legislative and regulatory actions and reforms affecting BlackRock or The PNC Financial Services Group, Inc.
- Terrorist activities and international hostilities, which may impact the economy, financial markets, or BlackRock specifically.
- The ability to attract and retain highly talented professionals.
- Fluctuations in the carrying value of BlackRock's investments.
- Changes to tax legislation and their impact on the company's tax position.
- BlackRock's success in maintaining the distribution of its products.
- BlackRock's decision to provide support to its products from time to time.
- Problems at other financial institutions or the failure or negative performance of their products.
Broker-Dealer's Potential Conflicts
As a broker-dealer, BlackRock Investments, Inc., and/or its affiliates may act as a principal for its own account or as an agent for its customers in connection with the sale or purchase of securities. If it receives a commission or mark-up or acts as an agent for another person in connection with any such transaction, BlackRock may have a potential conflict of interest. You understand this potential conflict and acknowledge that you may choose to effect securities transactions at another broker-dealer.
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Fund ratings
BlackRock Liquidity FedFund Institutional Shares (TFDXX) has a Morningstar Sustainability Rating of Money Market-Taxable. It has a Net Expense Ratio of 0.17% and a 52-Week Average Return of 5.17%. Its YTD Lipper Ranking is Quintile 1 (6th percentile).
The fund seeks a high level of current income consistent with liquidity and stability of principal. It invests at least 99.5% of its total assets in cash, U.S. Treasury bills, notes, and other obligations issued or guaranteed by the U.S. government, with a maturity of 397 days or less and a dollar-weighted average maturity of 60 days or less.
The fund's portfolio managers are Eion D'Anjou, Joseph Markowski, and Christopher Linsky.
BlackRock's website provides a list of disclosures and risk factors to consider before investing in any of its mutual funds. It also recommends reviewing the fund's prospectus, which is available by calling their Client Service Center or by visiting their website.
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Frequently asked questions
The BlackRock Liquidity Fed Fund Insti is a fund that seeks current income as is consistent with liquidity and stability of principal. The fund invests at least 99.5% of its total assets in cash, U.S. Treasury bills, notes and other obligations issued or guaranteed as to principal and interest by the U.S. government, its agencies or instrumentalities, and repurchase agreements secured by such obligations or cash.
As with any investment, there are risks associated with investing in the BlackRock Liquidity Fed Fund Insti. The share price of the fund will fluctuate, and when you sell your shares they may be worth more or less than what you originally paid for them. Additionally, the fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the fund's liquidity falls below required minimums due to market conditions or other factors.
To invest in the BlackRock Liquidity Fed Fund Insti, you can complete and submit an executed application along with any supporting documentation required. You can also visit your brokerage to see if they offer the fund.
