Fixed Income

BGF Sustainable Emerging Markets Local Currency 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.

Changes to interest rates, credit risk and/or issuer defaults will have a significant impact on the performance of fixed income securities. Noninvestment grade fixed income securities can be more sensitive to changes in these risks than higher rated fixed income securities. Potential or actual credit rating downgrades may increase the level of risk. Emerging markets are generally more sensitive to economic and political conditions than developed markets. Other factors include greater 'Liquidity Risk', restrictions on investment or transfer of assets, failed/delayed delivery of securities or payments to the Fund and sustainability-related risks. Currency Risk: The Fund invests in other currencies. Changes in exchange rates will therefore affect the value of the investment. 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 seeks to exclude companies engaging in certain activities inconsistent with ESG criteria. 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

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Reinvestments

This product does not have any distributions data as of now.

This chart shows the fund's performance as the percentage loss or gain per year over the last 3 years.

  2019 2020 2021 2022 2023
Total Return (%) -10.0 -11.8 13.3
Constraint Benchmark 1 (%) -9.5 -11.7 14.1

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

  1y 3y 5y 10y Incept.
3.74 -2.26 - - 1.36
Constraint Benchmark 1 (%) 5.59 -1.50 - - 2.02
  YTD 1m 3m 6m 1y 3y 5y 10y Incept.
-3.39 -0.28 -3.39 6.78 3.74 -6.64 - - 5.50
Constraint Benchmark 1 (%) -2.22 -0.05 -2.22 6.21 5.59 -4.44 - - 8.26
  From
31-Mar-2019
To
31-Mar-2020
From
31-Mar-2020
To
31-Mar-2021
From
31-Mar-2021
To
31-Mar-2022
From
31-Mar-2022
To
31-Mar-2023
From
31-Mar-2023
To
31-Mar-2024
Total Return (%)

as of 31-Mar-2024

- - -10.18 0.20 3.74
Constraint Benchmark 1 (%)

as of 31-Mar-2024

- - -9.34 -0.17 5.59

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 EUR, 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 19-Apr-2024 USD 466,606,069
Share Class launch date 08-Apr-2020
Fund Launch Date 09-Jul-2018
Share Class Currency EUR
Fund Base Currency USD
Asset Class Fixed Income
Constraint Benchmark 1 J.P. Morgan ESG-Government Bond Index Emerging Markets Global Diversified (USD)
Initial Charge 5.00%
Ongoing Charges Figures 1.25%
ISIN LU2144843070
Annual Management Fee 1.00%
Performance Fee 0.00%
Minimum Initial Investment EUR 25,000.00
Minimum Subsequent Investment EUR 1,000.00
Use of Income Accumulating
Domicile Luxembourg
Regulatory Structure UCITS
Management Company BlackRock (Luxembourg) S.A.
Morningstar Category Other Bond
Dealing Settlement Trade Date + 3 days
Dealing Frequency Daily, forward pricing basis
Bloomberg Ticker BLCAIEH
SEDOL BMQ4BR3

Portfolio Characteristics

Portfolio Characteristics

Number of Holdings as of 28-Mar-2024 182
Standard Deviation (3y) as of 31-Mar-2024 12.06%
3y Beta as of 31-Mar-2024 1.066
Yield to Maturity as of 28-Mar-2024 7.42
Modified Duration as of 28-Mar-2024 5.86
Weighted Average YTM as of 28-Mar-2024 7.42%
Effective Duration as of 28-Mar-2024 5.88
Weighted Avg Maturity as of 28-Mar-2024 7.19
WAL to Worst as of 28-Mar-2024 7.19

Sustainability Characteristics

Sustainability Characteristics

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. MSCI Ratings are currently unavailable for this fund.

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

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Low Risk High Risk
Typically low rewards Typically high rewards

Ratings

Holdings

Holdings

as of 28-Mar-2024
Name Weight (%)
POLAND (REPUBLIC OF) 6 10/25/2033 2.75
COLOMBIA (REPUBLIC OF) 7 03/26/2031 2.61
BRAZIL FEDERATIVE REPUBLIC OF (GOV 10 01/01/2029 2.52
PERU (REPUBLIC OF) 6.95 08/12/2031 2.21
MEXICO (UNITED MEXICAN STATES) (GO 7.75 05/29/2031 1.92
Name Weight (%)
BRAZIL FEDERATIVE REPUBLIC OF (GO 10 01/01/2027 1.91
BRAZIL FEDERATIVE REPUBLIC OF (GOV 0 01/01/2026 1.81
SOUTH AFRICA (REPUBLIC OF) 7 02/28/2031 1.56
BRAZIL FEDERATIVE REPUBLIC OF (GOV 10 01/01/2031 1.51
TREASURY NOTE 4.625 06/30/2025 1.50
Holdings subject to change

Exposure Breakdowns

Exposure Breakdowns

as of 28-Mar-2024

% of Market Value

Type Fund Benchmark Net
as of 28-Mar-2024

% of Market Value

Type Fund Benchmark Net
as of 28-Mar-2024

% of Market Value

Type Fund Benchmark Net
as of 28-Mar-2024

% of Market Value

Type Fund Benchmark Net
as of 28-Mar-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 AI2 Hedged EUR 10.19 -0.03 -0.29 19-Apr-2024 10.94 9.62 LU2144843070
Class AI2 EUR 11.60 -0.04 -0.34 19-Apr-2024 11.98 10.98 LU2144842858
Class D2 Hedged EUR 8.73 -0.02 -0.23 19-Apr-2024 9.36 8.22 LU1817794628
Class A2 USD 9.82 -0.03 -0.30 19-Apr-2024 10.48 9.17 LU1860487765
Class A2 Hedged EUR 8.49 -0.02 -0.24 19-Apr-2024 9.11 8.01 LU1817794545
Class D2 USD 10.10 -0.02 -0.20 19-Apr-2024 10.75 9.40 LU1817794388

Portfolio Managers

Portfolio Managers

Laurent Develay
Laurent Develay
Amer Bisat
Managing Director, Head of Emerging Markets Fixed Income

Amer Bisat, PhD., Managing Director, is Head of Emerging Markets Fixed Income and a member of the Fundamental-GFI Executive Committee.

Laurent Develay
Laurent Develay
Michal Wozniak
Michal Wozniak

Literature

Literature