Navigating Global Currents: BlackRock International VI Fund's Q3 2025 Journey

Well, another quarter has flown by, hasn't it? As we draw the curtain on the third quarter of 2025, it’s a good moment to reflect on what was certainly an eventful period for international equity markets. Here at BlackRock International VI Fund, our aim, as always, is to navigate these complex waters and deliver compelling returns for our investors. This past quarter saw us, perhaps, not quite hit all the high notes we'd hoped for, with the fund experiencing a slight dip, ultimately lagging the MSCI ACWI ex USA Index by a small margin. However, it’s crucial to understand the backdrop against which this unfolded, and importantly, our long-term conviction remains as robust as ever.

Globally, the economic narrative continued to be a mixed bag, if we're honest. Persistent inflationary pressures, particularly in some developed economies outside the U.S., meant central banks were still treading carefully, keeping interest rate hikes on the table or at least maintaining a hawkish stance. While the U.S. economy showed surprising resilience, many international markets, especially in Europe, grappled with softer growth prospects. Emerging markets, too, faced their own set of challenges, from a somewhat sluggish recovery in certain Asian giants to commodity price fluctuations impacting various regions. The tug-of-war between growth optimism and recession fears continued to define investor sentiment, creating quite the choppy environment. It really underscored the importance of discerning between noise and genuine long-term value.

In such an environment, our active management approach truly comes to the fore. We certainly don't chase fads, you know. Instead, our focus remained steadfast on identifying high-quality companies – businesses with robust balance sheets, sustainable competitive advantages, and management teams we trust implicitly. During Q3, we continued to favor sectors and companies that we believe can demonstrate resilience and growth, irrespective of the broader macroeconomic winds. While we might have seen some near-term pressure in certain holdings, perhaps due to temporary market sentiment shifts, we believe in the underlying strength of these investments. For instance, our conviction in specific innovative healthcare companies and select industrials, which are well-positioned for structural growth trends, remained high. We also selectively trimmed positions in areas we felt were becoming a bit overheated, or where the risk-reward balance just wasn't as compelling anymore.

Looking ahead, we're not expecting a sudden easing of volatility, let's be clear about that. The global landscape remains complex, with geopolitical developments, inflation trajectories, and central bank policies continuing to be major determinants of market performance. However, it's precisely in these times of uncertainty that active stock selection truly shines. We see pockets of opportunity emerging, particularly in companies that are innovating, adapting, and expanding their market share, even against a challenging backdrop. Our commitment to a disciplined, research-intensive approach means we're constantly evaluating new ideas and adjusting our portfolio with an eye towards long-term capital appreciation. We are confident in our ability to uncover those hidden gems that might be overlooked by passive strategies.

In closing, while Q3 2025 presented its share of hurdles, we believe the BlackRock International VI Fund is well-positioned. We appreciate the trust our investors place in us and remain dedicated to navigating the international equity landscape with diligence and foresight.