Fixed Income

BGF US Government Mortgage Impact 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. Asset backed securities and mortgage backed securities are subject to the same risks described for fixed income securities. These instruments may be subject to 'Liquidity Risk', have high levels of borrowing and may not fully reflect the value of underlying assets. This Share Class may pay dividends or take charges from capital. While this may allow more income to be distributed, it may reduce the value of your holdings and impact the potential for long term capital growth. 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

Growth of Hypothetical 10,000

Performance chart data not available for display.
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Distributions

Record Date Ex-Date Payable Date
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  2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Total Return (%) -2.04 5.54 0.46 1.03 1.56 -0.91 6.49 5.06 -1.80 -13.16
Constraint Benchmark 1 (%) -1.52 6.12 1.56 1.59 2.47 1.01 6.68 4.03 -1.24 -11.81
  1Y 3Y 5Y 10y Incept.
-13.16 -3.60 -1.12 0.07 4.40
Constraint Benchmark 1 (%)

as of Dec 31, 2022

-11.81 -3.23 -0.48 0.76 5.78
  YTD 1m 3M 6M 1Y 3Y 5Y 10y Incept.
-13.16 0.36 0.99 -3.58 -13.16 -10.41 -5.46 0.72 401.23
Constraint Benchmark 1 (%)

as of Dec 31, 2022

-11.81 -0.44 2.14 -3.32 -11.81 -9.39 -2.37 7.87 718.14
  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

-0.91 6.49 5.06 -1.80 -13.16
Constraint Benchmark 1 (%)

as of Dec 31, 2022

1.01 6.68 4.03 -1.24 -11.81
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 6, 2023 USD 89,642,369
Share Class Inception Date Aug 2, 1985
Fund Inception Date Aug 2, 1985
Share Class Currency USD
Base Currency USD
Asset Class Fixed Income
Constraint Benchmark 1 Bloomberg US MBS Index
SFDR Classification Article 9
Initial Charge 5.00%
Ongoing Charge 1.01%
Annual Management Fee 0.75%
Performance Fee 0.00%
Minimum Initial Investment USD 5000
Minimum Subsequent Investment USD 1000
Distribution Frequency Monthly
Use of Income Distributing
Domicile Luxembourg
Regulatory Structure UCITS
Management Company BlackRock (Luxembourg) S.A.
Morningstar Category USD Government Bond
Dealing Settlement Trade Date + 3 days
Dealing Frequency Daily, forward pricing basis
Bloomberg Ticker MERFSAI
ISIN LU0035308682
SEDOL 4909556

Portfolio Characteristics

Portfolio Characteristics

Number of Holdings as of Jan 31, 2023 143
12m Trailing Yield as of Dec 31, 2022 2.92%
Standard Deviation (3y) as of Dec 31, 2022 5.44%
3y Beta as of Dec 31, 2022 0.922
Yield to Maturity as of Jan 31, 2023 4.28%
Modified Duration as of Jan 31, 2023 6.09 yrs
Yield to Worst as of Jan 31, 2023 4.28%
Effective Duration as of Jan 31, 2023 6.35 yrs
Weighted Avg Maturity as of Jan 31, 2023 7.91 yrs
WAL to Worst as of Jan 31, 2023 7.91 yrs

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 stage of the investment process. ESG information may be sourced from both internal and external sources and included in the Aladdin risk system. The Fund manager conducts 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

3 stars
Overall Morningstar Rating for BGF US Government Mortgage Impact Fund, Class A1, as of Jan 31, 2023 rated against 229 USD Government Bond Funds.

Risk Indicator

Risk Indicator

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

Holdings

Holdings

as of Jan 31, 2023
Name Weight (%)
GNMA2 30YR 56.65
FNMA 30YR UMBS 14.13
FHLMC 30YR UMBS SUPER 10.81
GNMA2 30YR 2020 PRODUCTION 6.23
GNMA_21-191B BI 1.51
Name Weight (%)
FHMR_20-P003 A2 0.54
FNMA_17-76 PB 0.39
FHLMC_4398 ZX 0.36
GNMA2 30YR 2007 PRODUCTION 0.32
GNMA 30YR 2005 PRODUCTION 0.29
Holdings subject to change

Exposure Breakdowns

Exposure Breakdowns

as of Jan 31, 2023

% of Market Value

Type Fund Benchmark Net
as of Jan 31, 2023

% of Market Value

Type Fund Benchmark Net
as of Jan 31, 2023

% 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
A1 USD Monthly 7.72 -0.07 -0.90 Feb 6, 2023 8.76 7.22 LU0035308682 -
C2 USD Accumulating 14.34 -0.14 -0.97 Feb 6, 2023 16.04 13.35 LU0147385503 -
D3 USD Monthly 7.74 -0.07 -0.90 Feb 6, 2023 8.78 7.25 LU0592702145 -
X3 USD Monthly 7.87 -0.08 -1.01 Feb 6, 2023 8.94 7.38 LU1246652132 -
I2 USD - 9.55 -0.09 -0.93 Feb 6, 2023 10.50 8.84 LU2011139206 -
E2 EUR Accumulating 15.24 -0.02 -0.13 Feb 6, 2023 16.94 14.94 LU0277197322 -
D2 USD Accumulating 19.12 -0.18 -0.93 Feb 6, 2023 21.06 17.71 LU0424777026 -
I3 USD Monthly 7.88 -0.08 -1.01 Feb 6, 2023 8.95 7.39 LU1456639035 -
A2 USD Accumulating 18.24 -0.17 -0.92 Feb 6, 2023 20.16 16.92 LU0096258446 -
C1 USD Monthly 8.14 -0.08 -0.97 Feb 6, 2023 9.24 7.61 LU0147384878 -
E2 USD Accumulating 16.37 -0.16 -0.97 Feb 6, 2023 18.18 15.21 LU0147385842 -
A3 USD Monthly 7.72 -0.07 -0.90 Feb 6, 2023 8.76 7.23 LU0172418690 -
Class ZI2 Hedged EUR - 10.54 -0.10 -0.94 Feb 6, 2023 10.68 9.86 LU2533725326 -
Class ZI2 USD - 10.65 -0.10 -0.93 Feb 6, 2023 10.79 9.86 LU2533725599 -

Portfolio Managers

Portfolio Managers

Akiva Dickstein
Managing Director, Head of Customized Multi-Sector Portfolios, Co-Head of Global Inflation Linked Portfolios

  

Matthew Kraeger
Managing Director, Mortgage Portfolio Team

Matthew Kraeger, Managing Director, is lead portfolio manager for mortgage portfolios on BlackRock's Global Fixed Income platform. He is responsible for the Mortgage Portfolio Team.

Bob Miller
Managing Director, Global Fixed Income Group

   

Literature

Literature