Unlocking Value: A Quarterly Insight into Investment Dynamics
Fund Performance Highlights: Navigating Market Trends
The BlackRock Basic Value V.I. Fund's Class I shares demonstrated a solid performance in the second quarter of 2025, achieving a return of 6.39%. This positive outcome reflects the fund's adaptive investment approach amidst evolving market conditions.
Strategic Allocation: Information Technology's Impact
A significant portion of the fund's strong performance can be attributed to its strategic investment decisions within the information technology sector. Notably, the focus on technology hardware, storage, and peripheral industries proved to be a major catalyst, contributing substantially to the fund's overall gains.
Challenges and Detractors: Industrial Sector Underperformance
Despite the overall positive results, the fund faced headwinds from certain investment choices and an intentional underweight position in the industrials sector. Specifically, security selection within the industrials sector and its sub-segment, the electrical equipment industry, acted as the primary detractor from relative performance during this period.