Fixed Income

BGF US Government Mortgage Impact Fund

  • NAV as of Jan 30, 2023 USD 18.31
    52 WK: 16.92 - 20.29
  • 1 Day NAV Change as of Jan 30, 2023 -0.02 (-0.11%)
  • Morningstar Rating

Overview

Investment Approach

The Fund seeks a high level of income. The Fund invests at least 80% of its total assets in fixed income securities which are denominated in US dollars. The fixed income securities will be issued or guaranteed by the United States Government, its agencies or United States government sponsored enterprises, including Government National Mortgage Association, mortgage-backed certificates and other United States Government securities representing ownership interests in mortgage pools, such as mortgage-backed securities (MBS) issued by Fannie Mae and Freddie Mac. MBS are financial securities which are backed cash flows from underlying assets such as commercial and residential mortgages. The Fund can use derivatives as part of its investment strategy. This can increase the overall risk profile of the Fund.
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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Share Class and Benchmark performance displayed in USD. Source: BlackRock. Performance is shown on a Net Asset Value (NAV) basis, with gross income reinvested. Past performance is not a guide to future performance.

  2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Total Return (%) -2.09 5.59 0.44 0.98 1.56 -0.80 6.41 5.07 -1.82 -13.19
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.
Total Return (%)

as of Dec 31, 2022

-13.19 -3.61 -1.12 0.07 4.43
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.
Total Return (%)

as of Dec 31, 2022

-13.19 0.28 0.91 -3.67 -13.19 -10.45 -5.46 0.68 406.30
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

-0.80 6.41 5.07 -1.82 -13.19
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 Jan 30, 2023 USD 90,610,584
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
Use of Income Accumulating
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 ME2LU LX
ISIN LU0096258446
SEDOL 5800562

Portfolio Characteristics

Portfolio Characteristics

Number of Holdings as of Dec 30, 2022 280
Standard Deviation (3y) as of Dec 31, 2022 5.40%
3y Beta as of Dec 31, 2022 0.916
Yield to Maturity as of Dec 30, 2022 4.85%
Modified Duration as of Dec 30, 2022 6.18 yrs
Yield to Worst as of Dec 30, 2022 4.85%
Effective Duration as of Dec 30, 2022 6.40 yrs
Weighted Avg Maturity as of Dec 30, 2022 8.52 yrs
WAL to Worst as of Dec 30, 2022 8.52 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 A2, as of Dec 31, 2022 rated against 225 USD Government Bond Funds.

Risk Indicator

Risk Indicator

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

Holdings

Holdings

as of Dec 30, 2022
Name Weight (%)
GNMA2 30YR 56.05
UMBS 30YR TBA(REG A) 16.28
FNMA 30YR UMBS 14.09
UMBS 30YR TBA 13.88
FHLMC 30YR UMBS SUPER 10.71
Name Weight (%)
UMBS 15YR TBA(REG B) 8.70
GNMA2 30YR 2020 PRODUCTION 6.15
GNMA_21-191B BI 1.55
FNMA 30YR 1.23
FNMA 30YR 0.77
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
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
A2 USD Accumulating 18.31 -0.02 -0.11 Jan 30, 2023 20.29 16.92 LU0096258446 -
E2 USD Accumulating 16.44 -0.02 -0.12 Jan 30, 2023 18.31 15.21 LU0147385842 -
Class ZI2 USD - 10.69 -0.01 -0.09 Jan 30, 2023 10.74 9.86 LU2533725599 -
X3 USD Monthly 7.93 0.00 0.00 Jan 30, 2023 9.00 7.38 LU1246652132 -
Class ZI2 Hedged EUR - 10.59 -0.01 -0.09 Jan 30, 2023 10.64 9.86 LU2533725326 -
E2 EUR Accumulating 15.09 -0.06 -0.40 Jan 30, 2023 16.94 14.94 LU0277197322 -
C1 USD Monthly 8.18 -0.01 -0.12 Jan 30, 2023 9.31 7.61 LU0147384878 -
C2 USD Accumulating 14.40 -0.02 -0.14 Jan 30, 2023 16.16 13.35 LU0147385503 -
I3 USD Monthly 7.94 0.00 0.00 Jan 30, 2023 9.02 7.39 LU1456639035 -
A1 USD Monthly 7.75 -0.01 -0.13 Jan 30, 2023 8.83 7.22 LU0035308682 -
D2 USD Accumulating 19.19 -0.02 -0.10 Jan 30, 2023 21.20 17.71 LU0424777026 -
I2 USD - 9.58 -0.01 -0.10 Jan 30, 2023 10.57 8.84 LU2011139206 -
A3 USD Monthly 7.77 -0.01 -0.13 Jan 30, 2023 8.83 7.23 LU0172418690 -
D3 USD Monthly 7.79 -0.01 -0.13 Jan 30, 2023 8.85 7.25 LU0592702145 -

Portfolio Managers

Portfolio Managers

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

  

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Akiva Dickstein, Managing Director, is Head of Customized Multi-Sector Portfolios and Co-Head of Global Inflation Linked Portfolios within BlackRock's Global Fixed Income (GFI) group, and a member of the Global Fixed Income executive team. Prior to taking on his current responsibilities, Mr. Dickstein was the lead portfolio manager on BlackRock's mortgage portfolios.

 

Before joining BlackRock in 2009, Mr. Dickstein spent eight years at Merrill Lynch, where he served as Managing Director and head of the U.S. Rates & Structured Credit Research Group. He was responsible for the team that produced MBS, ABS, CMBS, Treasuries, swaps, and interest rate derivatives research. Mr. Dickstein's publications on MBS strategy included the weekly Mortgage Investor as well as numerous lengthier articles on topics such as optimal loan modifications, the valuation of credit-sensitive MBS and ABS, and the pricing of mortgage derivatives, options, and pass-throughs. In addition, he developed Merrill's prepayment models for fixed rate and hybrid MBS. From 1993 to 2001, Mr. Dickstein was with Lehman Brothers, most recently as a Senior Vice President in Mortgage Derivatives Trading. In this role, he traded mortgage derivatives and developed Lehman's credit default model. He joined Lehman as a mortgage and asset-backed securities analyst and was named to Institutional Investor's All American Fixed Income Research Team in pass-throughs, non-agency mortgages and asset-backed securities.

 

Mr. Dickstein earned a BA degree in economics, summa cum laude, from Yale University in 1990, and an MA degree in physics from Princeton University in 1993.

Matthew Kraeger
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.

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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.

 

Mr. Kraeger has been a portfolio manager within the mortgage team since 2004, serving as a PM across both institutional accounts and retail funds. Mr. Kraeger is a member of BlackRock’s Fixed Income ESG Committee.

 

He began his investment career as an analyst in BlackRock's trade operations department in 2000 and joined the Portfolio Analytics Group in 2002. Mr. Kraeger earned a BS degree in finance from Syracuse University.

Bob Miller
Bob Miller
Managing Director, Global Fixed Income Group

   

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Bob Miller, Managing Director, is head of Americas Fundamental Fixed Income within BlackRock's Global Fixed Income Group and a member of the Global Fixed Income Executive Committee. He is a portfolio manager of BlackRock's Core Bond, Total Return and Strategic Income Opportunities strategies.

 

Prior to joining BlackRock in 2011, Mr. Miller was a co-founder and partner at the Round Table Investment Management Company, a multi-strategy, research-based investment company, where he managed a global macro strategy. Previously, Mr. Miller spent 20 years at Bank of America, where he served in a variety of roles, most recently as senior portfolio manager for the bank's proprietary multi-asset investment portfolio. Mr. Miller managed global interest rate, credit and foreign exchange portfolios during his tenure at Bank of America.

 

Mr. Miller is a former Trustee of Davidson College where he served as Chair of the Investment Committee, member of the Athletics Committee and member of the Presidential Search Committee. He currently serves as an advisor to the Investment Committee and is also actively involved with the Davidson July Experience program. Mr. Miller is a former Trustee and past Chairman of the Board at Trinity Episcopal School in Charlotte, NC. He currently serves as an advisor to the TES Investment Committee. He previously served as an advisor to the Investment Committee of St. Mary's School in Raleigh, NC.  Mr. Miller is a member of the Chairmen's Circle with the Central Park Conservancy in New York City. 

 

He earned a BA degree in economics from Davidson College.

Literature

Literature