BlackRock National Municipal Fund Q3 2025 Commentary
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BlackRock5.07K FollowersFollow5ShareSavePlay(7min)CommentsSummaryThe fund posted returns of 2.52% (Institutional shares) and 2.56% (Investor A shares, without sales charge) for the third quarter of 2025.Quality investment grade securities did well, while holdings of non-investment grade securities had mixed performance.Duration (interest rate sensitivity) of 6.90 years was 0.11 years above the benchmark, while 18.2% of securities were exposed to alternative minimum tax.
Mohamad Faizal Bin Ramli/iStock via Getty Images Commentary as of 09/30/25 The fund posted returns of 2.52% (Institutional shares) and 2.56% (Investor A shares, without sales charge) for the third quarter of 2025. Quality investment grade securities did well, whileThis article was written byBlackRock5.07K FollowersFollowBlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable.Quick InsightsHow did the fund's duration and sector allocations impact Q3 2025 performance?A longer duration and overweight allocations to prepaid gas and corporate-backed municipals enhanced returns, though negatively convex structures and select high-yield bonds detracted.What is the fund's current positioning and rationale for the remainder of 2025?The fund is positioned at the longer end of the intermediate range, targeting attractive absolute and relative valuations to capitalize on positive return potential for the rest of 2025.What risks or opportunity costs are highlighted in the fund’s current strategy?A 3.3% cash reserve posed opportunity costs during rising bond prices, and negatively convex holdings underperformed as rates fell, though quality bias and sector overweights offset these effects.Recommended For You