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

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Reinvestments

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

  2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Total Return (%) 5.59 0.44 0.98 1.56 -0.80 6.41 5.07 -1.82 -13.19 3.20
Constraint Benchmark 1 (%) 6.12 1.56 1.59 2.47 1.01 6.68 4.03 -1.24 -11.81 5.05

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

  1Y 3Y 5Y 10y Incept.
-0.39 -4.73 -1.42 -0.01 4.29
Constraint Benchmark 1 (%) 0.50 -3.34 -0.82 0.82 5.64
  YTD 1m 3M 6M 1Y 3Y 5Y 10y Incept.
-2.34 1.64 -0.22 1.47 -0.39 -13.52 -6.89 -0.11 410.28
Constraint Benchmark 1 (%) -2.12 2.00 -0.04 2.10 0.50 -9.69 -4.01 8.52 741.19
  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 Mar 31, 2024

6.93 1.02 -6.37 -6.55 0.33
Constraint Benchmark 1 (%)

as of Mar 31, 2024

7.83 -0.49 -5.00 -4.85 1.39
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.

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 Jun 18, 2024
USD 108,665,137
Fund Inception Date
Aug 2, 1985
Base Currency
USD
Constraint Benchmark 1
Bloomberg US MBS Index
Initial Charge
5.00%
ISIN
LU0096258446
Performance Fee
0.00%
Minimum Subsequent Investment
USD 1000
Domicile
Luxembourg
Management Company
BlackRock (Luxembourg) S.A.
Dealing Settlement
Trade Date + 3 days
Bloomberg Ticker
ME2LU LX
Share Class Inception Date
Aug 2, 1985
Share Class Currency
USD
Asset Class
Fixed Income
SFDR Classification
Article 9
Ongoing Charge
0.93%
Annual Management Fee
0.75%
Minimum Initial Investment
USD 5000
Use of Income
Accumulating
Regulatory Structure
UCITS
Morningstar Category
USD Government Bond
Dealing Frequency
Daily, forward pricing basis
SEDOL
5800562

Portfolio Characteristics

Portfolio Characteristics

Number of Holdings
as of May 31, 2024
157
3y Beta
as of May 31, 2024
0.924
Modified Duration
as of May 31, 2024
6.06 yrs
Effective Duration
as of May 31, 2024
5.78 yrs
WAL to Worst
as of May 31, 2024
8.37 yrs
Standard Deviation (3y)
as of May 31, 2024
7.59%
Yield to Maturity
as of May 31, 2024
5.47%
Yield to Worst
as of May 31, 2024
5.47%
Weighted Avg Maturity
as of May 31, 2024
8.37 yrs

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.

Ratings

Risk Indicator

Risk Indicator

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

Holdings

Holdings

as of May 31, 2024
Name Weight (%)
GNMA2 30YR 42.90
FNMA 30YR UMBS 18.95
GNMA2 30YR TBA(REG C) 16.25
FHLMC 30YR UMBS 7.83
FHLMC 30YR UMBS SUPER 7.74
Name Weight (%)
GNMA2 30YR 2020 PRODUCTION 2.70
GNMA_21-191B BI 1.09
GNMA2 30YR 2023 PRODUCTION 0.63
FHMR_20-P003 A2 0.43
FNMA_17-76 PB 0.30
Holdings subject to change

Exposure Breakdowns

Exposure Breakdowns

as of May 31, 2024

% of Market Value

Type Fund Benchmark Net
as of May 31, 2024

% of Market Value

Type Fund Benchmark Net
as of May 31, 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
A2 USD 18.30 0.02 0.11 Jun 18, 2024 18.46 16.63 LU0096258446
Class SR5 Hedged EUR 10.05 0.01 0.10 Jun 18, 2024 10.29 9.68 LU2714841603
I2 Hgd EUR 10.69 0.01 0.09 Jun 18, 2024 10.84 9.80 LU2677621554
Class SR2 Hedged EUR 10.16 0.02 0.20 Jun 18, 2024 10.30 9.77 LU2714841512
Class SR5 Hedged GBP 10.12 0.01 0.10 Jun 18, 2024 10.30 9.72 LU2714841785
A2 Hgd EUR 10.13 0.01 0.10 Jun 18, 2024 10.30 9.76 LU2714841868
Class ZI2 USD 10.79 0.02 0.19 Jun 18, 2024 10.85 9.76 LU2533725599
Class SR5 USD 10.15 0.01 0.10 Jun 18, 2024 10.31 9.75 LU2714841355
A3 USD 7.45 0.01 0.13 Jun 18, 2024 7.64 6.92 LU0172418690
A1 USD 7.44 0.01 0.13 Jun 18, 2024 7.62 6.91 LU0035308682
I3 USD 7.61 0.01 0.13 Jun 18, 2024 7.80 7.07 LU1456639035
D2 USD 19.28 0.03 0.16 Jun 18, 2024 19.41 17.48 LU0424777026
C2 USD 14.15 0.02 0.14 Jun 18, 2024 14.36 12.97 LU0147385503
D3 USD 7.47 0.01 0.13 Jun 18, 2024 7.66 6.94 LU0592702145
X3 USD 7.60 0.01 0.13 Jun 18, 2024 7.79 7.06 LU1246652132
Class SR2 USD 10.26 0.02 0.20 Jun 18, 2024 10.32 9.85 LU2714841439
I2 USD 9.65 0.02 0.21 Jun 18, 2024 9.71 8.74 LU2011139206
Class I5 Hedged GBP 10.62 0.02 0.19 Jun 18, 2024 10.80 9.81 LU2677621471
C1 USD 7.85 0.01 0.13 Jun 18, 2024 8.04 7.28 LU0147384878
E2 EUR 15.18 -0.03 -0.20 Jun 18, 2024 15.32 14.03 LU0277197322
Class ZI2 Hedged EUR 10.37 0.02 0.19 Jun 18, 2024 10.50 9.49 LU2533725326
E2 USD 16.32 0.02 0.12 Jun 18, 2024 16.50 14.88 LU0147385842

Portfolio Managers

Portfolio Managers

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.

Siddharth Mehta
Director, Mortgage Portfolio Team

Siddharth Mehta, Director,  is a member of the Mortgage Portfolio Team within BlackRock's Americas Fixed Income Alpha Strategies.

Literature

Literature