The BlackRock International V.I. Fund experienced a 3.27% return for its Class I shares in the third quarter of 2025. This period was marked by notable underperformance, largely attributable to specific investment decisions within the industrial and financial sectors. Additionally, the fund's overall sector allocation strategy and suboptimal security selections in the healthcare industry contributed to these results. The prevailing market conditions, characterized by a strong tilt towards value in international markets, posed significant challenges for the fund's investment approach during this quarter.
In response to these challenges, the fund has initiated strategic adjustments. There was a conscious effort to narrow its underweight positions in emerging markets and various Asian economies, indicating a re-evaluation of growth opportunities in these regions. Furthermore, a thorough analysis of holdings in underperforming sectors led to significant reductions in industrial positions that were struggling. This proactive approach aims to refine the fund's portfolio and enhance its resilience against future market fluctuations.
Looking ahead, the fund also strategically reduced its exposure to certain consumer holdings. The focus has shifted towards investments driven by unique, idiosyncratic themes that are expected to offer greater stability and potential for growth, irrespective of broader market trends. This recalibration underscores a commitment to adaptive management and a forward-looking perspective, ensuring the fund is better positioned to capture opportunities and mitigate risks in a dynamic global investment landscape.
Through diligent analysis and strategic adjustments, the BlackRock International V.I. Fund is actively adapting to market complexities. This ongoing process of refinement and optimization reflects a steadfast commitment to delivering sustained value for investors, navigating challenges with foresight and embracing opportunities for growth.
