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.

Loading

Performance

Performance

Growth of Hypothetical 10,000

Performance chart data not available for display.
View full chart

  2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Total Return (%) 0.62 7.84 -0.50 1.74 1.63 -2.38 5.87 5.48 -1.67 -15.20
Constraint Benchmark 1 (%) -0.14 7.59 1.02 3.95 3.04 1.76 8.22 5.58 -1.39 -11.22
  1Y 3Y 5Y 10y Incept.
-15.20 -4.19 -1.89 0.15 1.83
Constraint Benchmark 1 (%)

as of Dec 31, 2022

-11.22 -2.59 0.36 1.70 2.93
  YTD 1m 3M 6M 1Y 3Y 5Y 10y Incept.
-15.20 -1.07 -0.54 -4.62 -15.20 -12.04 -9.09 1.48 30.00
Constraint Benchmark 1 (%)

as of Dec 31, 2022

-11.22 -1.18 0.99 -2.38 -11.22 -7.57 1.79 18.32 51.83
  From
31-Dec-2017
To
31-Dec-2018
From
31-Dec-2018
To
31-Dec-2019
From
31-Dec-2019
To
31-Dec-2020
From
31-Dec-2020
To
31-Dec-2021
From
31-Dec-2021
To
31-Dec-2022
Total Return (%)

as of Dec 31, 2022

-2.38 5.87 5.48 -1.67 -15.20
Constraint Benchmark 1 (%)

as of Dec 31, 2022

1.76 8.22 5.58 -1.39 -11.22
The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted.

Key Facts

Key Facts

Net Assets of Fund as of Feb 3, 2023 USD 1,113,247,553
Share Class Inception Date Jul 14, 2008
Fund Inception Date Sep 4, 1985
Share Class Currency CHF
Base Currency USD
Asset Class Fixed Income
Constraint Benchmark 1 BBG Global Aggregate Index (USD Hedged)
SFDR Classification Article 8
Initial Charge 0.00%
Ongoing Charge 0.03%
Annual Management Fee 0.00%
Performance Fee 0.00%
Minimum Initial Investment CHF 10000000
Minimum Subsequent Investment CHF 1000
Use of Income Accumulating
Domicile Luxembourg
Regulatory Structure UCITS
Management Company BlackRock (Luxembourg) S.A.
Morningstar Category Global Bond - CHF Hedged
Dealing Settlement Trade Date + 3 days
Dealing Frequency Daily, forward pricing basis
Bloomberg Ticker BGWBCX2
ISIN LU0372548510
SEDOL B3B3R30

Portfolio Characteristics

Portfolio Characteristics

Number of Holdings as of Dec 30, 2022 1156
Standard Deviation (3y) as of Dec 31, 2022 5.67%
3y Beta as of Dec 31, 2022 1.059
Yield to Maturity as of Dec 30, 2022 5.01%
Modified Duration as of Dec 30, 2022 7.08 yrs
Yield to Worst as of Dec 30, 2022 4.99%
Effective Duration as of Dec 30, 2022 6.99 yrs
Weighted Avg Maturity as of Dec 30, 2022 8.07 yrs
WAL to Worst as of Dec 30, 2022 8.07 yrs

Sustainability Characteristics

Sustainability Characteristics

To be included in MSCI ESG Fund Ratings, 65% 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. For newly launched funds, Sustainability Characteristics are typically available 6 months after launch. MSCI Ratings are currently unavailable for this fund.

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 Dec 30, 2022 0.00%
MSCI - UN Global Compact Violators as of Dec 30, 2022 0.00%
MSCI - Nuclear Weapons as of Dec 30, 2022 0.00%
MSCI - Thermal Coal as of Dec 30, 2022 0.00%
MSCI - Civilian Firearms as of Dec 30, 2022 0.00%
MSCI - Oil Sands as of Dec 30, 2022 0.00%
MSCI - Tobacco as of Dec 30, 2022 0.00%

Business Involvement Coverage as of Dec 30, 2022 24.41%
Percentage of Fund not covered as of Dec 30, 2022 75.97%
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 0.01% and for Oil Sands 0.07%.

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 material environmental, social and governance (ESG) information or insights alongside traditional measures into the investment decision process to improve long term financial outcomes of 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, but rather describes how ESG information is considered as part of the overall investment process.


The Fund manager includes ESG considerations in combination with other information in the research and due diligence phase of the investment process. ESG information may be sourced internally, via collaboration with the BlackRock Investment Stewardship team in engaging issuers on material environmental, social or governance topics, or from third-party providers. The Fund manager’s ongoing monitoring of the portfolio involves regular portfolio risk reviews with the Risk and Quantitative Analysis group. These reviews include discussion of the portfolio’s exposure to material ESG risks, as well as exposure to sustainability-related business involvements, climate-related metrics, and other factors.

Ratings

Ratings

Morningstar Rating

4 stars
Overall Morningstar Rating for BGF Sustainable World Bond Fund, Class X2 Hedged, as of Jan 31, 2023 rated against 230 Global Bond - CHF Hedged Funds.

Morningstar Analyst Rating

Morningstar Analyst Rating - Bronze
Morningstar has awarded the Fund a Bronze medal. Fewer than 10% of US open-end funds hold medalist ratings. (Effective Jan 16, 2019)

Risk Indicator

Risk Indicator

1
2
3
4
5
6
7
Low Risk High Risk
Low Yield High Yield

Holdings

Holdings

as of Dec 30, 2022
Name Weight (%)
UMBS 30YR TBA(REG A) 5.67
GERMANY (FEDERAL REPUBLIC OF) 1.3 10/15/2027 5.08
GERMANY (FEDERAL REPUBLIC OF) 0 08/15/2031 2.74
JAPAN (GOVERNMENT OF) 5YR #148 0.005 06/20/2026 1.56
UK CONV GILT 0.375 10/22/26 0.375 10/22/2026 1.54
Name Weight (%)
CHINA PEOPLES REPUBLIC OF (GOVERNM 3.01 05/13/2028 1.45
GNMA2 30YR TBA(REG C) 1.38
JAPAN (GOVERNMENT OF) 2YR #433 0.005 02/01/2024 1.22
UMBS 30YR TBA 1.17
CHINA PEOPLES REPUBLIC OF (GOVERNM 1.99 04/09/2025 1.17
Holdings subject to change

Exposure Breakdowns

Exposure Breakdowns

as of Dec 30, 2022

% of Market Value

Type Fund Benchmark Net
as of Dec 30, 2022

% of Market Value

Type Fund Benchmark Net
as of Dec 30, 2022

% of Market Value

Type Fund Benchmark Net
as of Dec 30, 2022

% of Market Value

Type Fund Benchmark Net
as of Dec 30, 2022

% 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 Distribution Frequency NAV NAV Amount Change NAV % Change NAV As Of 52wk High 52wk Low ISIN TIS
X2 Hgd CHF Accumulating 13.43 -0.04 -0.30 Feb 3, 2023 15.06 12.81 LU0372548510 -
E2 EUR Accumulating 64.33 0.25 0.39 Feb 3, 2023 70.67 62.96 LU0277197678 -
A2 Hgd EUR Accumulating 171.96 -0.48 -0.28 Feb 3, 2023 193.97 163.94 LU0330917880 -
X2 Hgd NOK Accumulating 13.24 -0.04 -0.30 Feb 3, 2023 14.55 12.53 LU0739658705 -
A6 Hgd SGD Monthly 8.93 -0.02 -0.22 Feb 3, 2023 10.15 8.54 LU1830001282 -
X2 Hgd NZD Accumulating 11.67 -0.04 -0.34 Feb 3, 2023 12.75 11.03 LU1288049783 -
X2 Hgd GBP Accumulating 12.25 -0.04 -0.33 Feb 3, 2023 13.48 11.59 LU0757589873 -
C1 USD Monthly 53.49 -0.15 -0.28 Feb 3, 2023 59.83 50.81 LU0184697588 -
I2 USD Accumulating 10.62 -0.03 -0.28 Feb 3, 2023 11.60 10.01 LU1087925589 -
A3 USD Monthly 53.08 -0.15 -0.28 Feb 3, 2023 59.37 50.48 LU0184696853 -
D2 USD Accumulating 81.48 -0.22 -0.27 Feb 3, 2023 89.18 76.85 LU0297941972 -
E2 USD Accumulating 69.70 -0.19 -0.27 Feb 3, 2023 76.98 65.91 LU0184697075 -
A1 USD Monthly 53.21 -0.15 -0.28 Feb 3, 2023 59.51 50.55 LU0012053665 -
D2 Hgd CHF Accumulating 9.35 -0.03 -0.32 Feb 3, 2023 10.55 8.94 LU0308772333 -
X2 Hgd EUR Accumulating 192.10 -0.54 -0.28 Feb 3, 2023 214.52 182.62 LU0692855462 -
A2 Hgd GBP Accumulating 11.00 -0.03 -0.27 Feb 3, 2023 12.22 10.43 LU0808759830 -
D3 USD Monthly 53.14 -0.15 -0.28 Feb 3, 2023 59.44 50.54 LU0827888321 -
X2 USD Accumulating 88.94 -0.25 -0.28 Feb 3, 2023 96.76 83.75 LU0184697158 -
A2 USD Accumulating 76.51 -0.21 -0.27 Feb 3, 2023 84.08 72.25 LU0184696937 -
X2 Hgd DKK Accumulating 111.03 -0.33 -0.30 Feb 3, 2023 122.30 105.17 LU0862984498 -
D2 Hgd EUR Accumulating 178.99 -0.51 -0.28 Feb 3, 2023 201.11 170.46 LU0827888594 -
A8 Hgd CNH Monthly 90.24 -0.26 -0.29 Feb 3, 2023 103.90 86.95 LU1529944784 -
D2 Hgd GBP Accumulating 11.17 -0.03 -0.27 Feb 3, 2023 12.36 10.59 LU0871639547 -

Portfolio Managers

Portfolio Managers

Rick Rieder
Managing Director, CIO of Global Fixed Income, Head of Fundamental Fixed Income, Head of Global Allocation Investment Team

  

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

Russell J Brownback, Managing Director, is a portfolio manager and Head of Global Macro Positioning for Fixed Income.

Aidan Doyle
Managing Director, Global Fixed Income Team

  

Trevor Slaven
Managing Director, Portfolio Manager

   

Literature

Literature