Fixed Income

BGF Sustainable World Bond Fund

Overview

Important Information: Capital at Risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested.

Credit risk, changes to interest rates and/or issuer defaults will have a significant impact on the performance of fixed income securities. Potential or actual credit rating downgrades may increase the level of risk. Derivatives may be highly sensitive to changes in the value of the asset on which they are based and can increase the size of losses and gains, resulting in greater fluctuations in the value of the Fund. The impact to the Fund can be greater where derivatives are used in an extensive or complex way. The Fund may seek to exclude Funds which are not subject to ESG-related requirements. Investors should therefore make a personal ethical assessment of the Fund’s ESG screening prior to investing in the Fund. Such ESG screening may adversely affect the value of the Fund’s investments compared to a fund without such screening.

All currency hedged share classes of this fund use derivatives to hedge currency risk. The use of derivatives for a share class could pose a potential risk of contagion (also known as spill-over) to other share classes in the fund. The fund’s management company will ensure appropriate procedures are in place to minimise contagion risk to other share class. Using the drop down box directly below the name of the fund, you can view a list of all share classes in the fund – currency hedged share classes are indicated by the word “Hedged” in the name of the share class. In addition, a full list of all currency hedged share classes is available on request from the fund’s management company

To the extent the Fund undertakes securities lending to reduce costs, the Fund will receive 62.5% of the associated revenue generated and the remaining 37.5% will be received by BlackRock as the securities lending agent. As securities lending revenue sharing does not increase the costs of running the Fund, this has been excluded from the ongoing charges.

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Performance

Performance

Chart

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Distributions

Ex-Date Total Distribution
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This chart shows the fund's performance as the percentage loss or gain per year over the last 10 years.

  2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Total Return (%) 7.6 0.3 3.1 3.5 0.3 8.9 7.0 -1.3 -13.4 7.2
Constraint Benchmark 1 (%) 7.6 1.0 3.9 3.0 1.8 8.2 5.6 -1.4 -11.2 7.1

Performance is shown after deduction of ongoing charges. Any entry and exit charges are excluded from the calculation.

  1y 3y 5y 10y Incept.
4.90 -2.52 0.01 1.68 2.00
Constraint Benchmark 1 (%) 4.20 -1.57 0.25 2.02 2.15
  YTD 1m 3m 6m 1y 3y 5y 10y Incept.
0.10 1.31 0.15 0.10 4.90 -7.38 0.05 18.14 26.07
Constraint Benchmark 1 (%) 0.13 0.87 0.12 0.13 4.20 -4.62 1.24 22.13 28.16
  From
30-Jun-2019
To
30-Jun-2020
From
30-Jun-2020
To
30-Jun-2021
From
30-Jun-2021
To
30-Jun-2022
From
30-Jun-2022
To
30-Jun-2023
From
30-Jun-2023
To
30-Jun-2024
Total Return (%)

as of 30-Jun-2024

5.22 2.67 -11.00 -0.79 4.90
Constraint Benchmark 1 (%)

as of 30-Jun-2024

6.07 0.08 -8.94 0.52 4.20

The figures shown relate to past performance. Past performance is not a reliable indicator of future performance. Markets could develop very differently in the future. It can help you to assess how the fund has been managed in the past

Share Class and Benchmark performance displayed in USD, hedged share class benchmark performance is displayed in USD.

Performance is shown on a Net Asset Value (NAV) basis, with gross income reinvested where applicable. The return of your investment may increase or decrease as a result of currency fluctuations if your investment is made in a currency other than that used in the past performance calculation. Source: Blackrock

Key Facts

Key Facts

Net Assets of Fund
as of 15-Jul-2024
USD 938,571,133
Fund Launch Date
04-Sep-1985
Fund Base Currency
USD
Constraint Benchmark 1
BBG Global Aggregate Index (USD Hedged) (USD)
Ongoing Charges Figures
0.63%
Annual Management Fee
0.40%
Minimum Initial Investment
USD 100,000.00
Use of Income
Distributing
Regulatory Structure
UCITS
Morningstar Category
Global Bond - USD Hedged
Dealing Frequency
Daily, forward pricing basis
SEDOL
B7V7N43
Share Class launch date
25-Oct-2012
Share Class Currency
USD
Asset Class
Fixed Income
Initial Charge
5.00%
ISIN
LU0827888321
Performance Fee
0.00%
Minimum Subsequent Investment
USD 1,000.00
Domicile
Luxembourg
Management Company
BlackRock (Luxembourg) S.A.
Dealing Settlement
Trade Date + 3 days
Bloomberg Ticker
BGWBD3U

Portfolio Characteristics

Portfolio Characteristics

Number of Holdings
as of 28-Jun-2024
1477
Standard Deviation (3y)
as of 30-Jun-2024
6.10%
Yield to Maturity
as of 28-Jun-2024
4.54
Weighted Average YTM
as of 28-Jun-2024
4.49%
Weighted Avg Maturity
as of 28-Jun-2024
8.09
12 Month Trailing Dividend Distribution Yield
as of 30-Jun-2024
3.34
3y Beta
as of 30-Jun-2024
1.025
Modified Duration
as of 28-Jun-2024
7.15
Effective Duration
as of 28-Jun-2024
7.05
WAL to Worst
as of 28-Jun-2024
8.09

Sustainability Characteristics

Sustainability Characteristics

Sustainability Characteristics provide investors with specific non-traditional metrics. Alongside other metrics and information, these enable investors to evaluate funds on certain environmental, social and governance characteristics. Sustainability Characteristics do not provide an indication of current or future performance nor do they represent the potential risk and reward profile of a fund. They are provided for transparency and for information purposes only. Sustainability Characteristics should not be considered solely or in isolation, but instead are one type of information that investors may wish to consider when assessing a fund.

The metrics are not indicative of how or whether ESG factors will be integrated into a fund. Unless otherwise stated in fund documentation and included within a fund’s investment objective, the metrics do not change a fund’s investment objective or constrain the fund’s investable universe, and there is no indication that an ESG or Impact focused investment strategy or exclusionary screens will be adopted by a fund. For more information regarding a fund's investment strategy, please see the fund's prospectus.

Review the MSCI methodologies behind Sustainability Characteristics using the links below.

MSCI ESG Fund Rating (AAA-CCC)
as of 21-Jun-2024
A
MSCI ESG Quality Score (0-10)
as of 21-Jun-2024
6.22
Fund Lipper Global Classification
as of 21-Jun-2024
Bond Global USD
MSCI Weighted Average Carbon Intensity (Tons CO2E/$M SALES)
as of 21-Jun-2024
170.81
MSCI ESG % Coverage
as of 21-Jun-2024
71.95
MSCI ESG Quality Score - Peer Percentile
as of 21-Jun-2024
49.11
Funds in Peer Group
as of 21-Jun-2024
448
MSCI Weighted Average Carbon Intensity % Coverage
as of 21-Jun-2024
31.27
All data is from MSCI ESG Fund Ratings as of 21-Jun-2024, based on holdings as of 31-Jan-2024. As such, the fund’s sustainable characteristics may differ from MSCI ESG Fund Ratings from time to time.

To be included in MSCI ESG Fund Ratings, 65% (or 50% for bond funds and money market funds) of the fund’s gross weight must come from securities with ESG coverage by MSCI ESG Research (certain cash positions and other asset types deemed not relevant for ESG analysis by MSCI are removed prior to calculating a fund’s gross weight; the absolute values of short positions are included but treated as uncovered), the fund’s holdings date must be less than one year old, and the fund must have at least ten securities.

Business Involvement

Business Involvement

Business Involvement metrics can help investors gain a more comprehensive view of specific activities in which a fund may be exposed through its investments.


Business Involvement metrics are not indicative of a fund’s investment objective, and, unless otherwise stated in fund documentation and included within a fund’s investment objective, do not change a fund’s investment objective or constrain the fund’s investable universe, and there is no indication that an ESG or Impact focused investment strategy or exclusionary screens will be adopted by a fund. For more information regarding a fund's investment strategy, please see the fund's prospectus.


Review the MSCI methodology behind the Business Involvement metrics, using links below.

MSCI - Controversial Weapons
as of 28-Jun-2024
0.00%
MSCI - Nuclear Weapons
as of 28-Jun-2024
0.00%
MSCI - Civilian Firearms
as of 28-Jun-2024
0.00%
MSCI - Tobacco
as of 28-Jun-2024
0.00%
MSCI - UN Global Compact Violators
as of 28-Jun-2024
0.00%
MSCI - Thermal Coal
as of 28-Jun-2024
0.00%
MSCI - Oil Sands
as of 28-Jun-2024
0.00%

Business Involvement Coverage
as of 28-Jun-2024
27.78%
Percentage of Fund not covered
as of 28-Jun-2024
72.35%
BlackRock business involvement exposures as shown above for Thermal Coal and Oil Sands are calculated and reported for companies that generate more than 5% of revenue from thermal coal or oil sands as defined by MSCI ESG Research. For the exposure to companies that generate any revenue from thermal coal or oil sands (at a 0% revenue threshold), as defined by MSCI ESG Research, it is as follows: Thermal Coal 0.19% and for Oil Sands 0.22%.

Business Involvement metrics are calculated by BlackRock using data from MSCI ESG Research which provides a profile of each company’s specific business involvement. BlackRock leverages this data to provide a summed up view across holdings and translates it to a fund's market value exposure to the listed Business Involvement areas above.


Business Involvement metrics are designed only to identify companies where MSCI has conducted research and identified as having involvement in the covered activity. As a result, it is possible there is additional involvement in these covered activities where MSCI does not have coverage. This information should not be used to produce comprehensive lists of companies without involvement. Business Involvement metrics are only displayed if at least 1% of the fund’s gross weight includes securities covered by MSCI ESG Research.

ESG Integration

ESG Integration

ESG integration is the practice of incorporating financially material environmental, social and governance (ESG) data or information into the investment decision process with the objective of enhancing risk-adjusted returns of our clients’ portfolios. Unless otherwise stated in Fund documentation or included within the Fund's investment objective, inclusion of this statement does not imply that the Fund has an ESG-aligned investment objective or strategy, but rather describes how ESG data or information is considered as part of the overall investment process.

The Fund manager includes ESG considerations in combination with other information in the research phase of the investment process. This may include relevant third-party insights, as well as internal engagement commentary and input from BlackRock Investment Stewardship on governance issues. The Fund manager conducts regular portfolio reviews with the Risk and Quantitative Analysis group and with the Chief Investment Officers. These reviews include discussion, where appropriate, of the portfolio's exposure to material ESG risks, as well as exposure to sustainability-related business involvements, climate-related metrics, and other factors.

Risk Indicator

Risk Indicator

1
2
3
4
5
6
7
Low Risk High Risk
Typically low rewards Typically high rewards

Ratings

Ratings

Morningstar Rating

3 stars
Overall Morningstar Rating for BGF Sustainable World Bond Fund, Class D3, as of 30-Jun-2024 rated against 372 Global Bond - USD Hedged Funds.

Morningstar Medalist Rating

Morningstar Medalist Rating - SILVER
Morningstar has awarded the Fund a Silver medal. (Effective 08-Dec-2023)

Holdings

Holdings

as of 28-Jun-2024
Name Weight (%)
UMBS 30YR TBA(REG A) 6.97
GERMANY (FEDERAL REPUBLIC OF) 1.3 10/15/2027 3.33
GNMA2 30YR TBA(REG C) 1.77
FNMA 30YR UMBS SUPER 1.55
CHINA PEOPLES REPUBLIC OF (GOVERNM 2.68 05/21/2030 1.05
Name Weight (%)
CHINA PEOPLES REPUBLIC OF (GOVERNM 2.79 12/15/2029 0.95
FNMA 30YR UMBS 0.95
CHINA PEOPLES REPUBLIC OF (GOVERNM 2.37 01/20/2027 0.94
JAPAN (GOVERNMENT OF) 5YR #160 0.2 06/20/2028 0.93
CHINA PEOPLES REPUBLIC OF (GOVERNM 2.46 02/15/2026 0.93
Holdings subject to change

Exposure Breakdowns

Exposure Breakdowns

as of 28-Jun-2024

% of Market Value

Type Fund Benchmark Net
as of 28-Jun-2024

% of Market Value

Type Fund Benchmark Net
as of 28-Jun-2024

% of Market Value

Type Fund Benchmark Net
as of 28-Jun-2024

% of Market Value

Type Fund Benchmark Net
as of 28-Jun-2024

% of Market Value

Type Fund Benchmark Net
Negative weightings may result from specific circumstances (including timing differences between trade and settle dates of securities purchased by the funds) and/or the use of certain financial instruments, including derivatives, which may be used to gain or reduce market exposure and/or risk management. Allocations are subject to change.

Pricing & Exchange

Pricing & Exchange

Investor Class Currency NAV NAV Amount Change NAV % Change NAV As Of 52wk High 52wk Low ISIN
Class D3 USD 53.00 0.02 0.04 15-Jul-2024 53.76 49.72 LU0827888321
Class A2 Hedged EUR 173.28 0.08 0.05 15-Jul-2024 174.11 160.94 LU0330917880
Class A3 USD 52.93 0.02 0.04 15-Jul-2024 53.69 49.66 LU0184696853
Class D2 Hedged EUR 181.41 0.09 0.05 15-Jul-2024 181.89 168.01 LU0827888594
Class D2 USD 85.03 0.04 0.05 15-Jul-2024 85.03 77.72 LU0297941972
Class A2 USD 79.38 0.03 0.04 15-Jul-2024 79.38 72.78 LU0184696937
Class A2 Hedged GBP 11.30 0.01 0.09 15-Jul-2024 11.30 10.39 LU0808759830
Class A1 USD 52.99 0.01 0.02 15-Jul-2024 53.70 49.69 LU0012053665
Class D2 Hedged GBP 11.54 0.00 0.00 15-Jul-2024 11.54 10.59 LU0871639547

Portfolio Managers

Portfolio Managers

Rick Rieder
Managing Director, CIO of Global Fixed Income

  

Russell Brownback
Managing Director, Head of Global Macro Positioning for Fixed-Income

  

Aidan Doyle, CFA
Managing Director, Portfolio Manager

  

Trevor Slaven
Trevor Slaven

Literature

Literature