Fixed Income

BGF US Dollar High Yield 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. Non-investment grade fixed income securities are more sensitive to changes in interest rates and present greater ‘Credit Risk’ than higher rated fixed income securities. 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

Growth of Hypothetical 10,000

Performance chart data not available for display.
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  2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Total Return (%) 7.72 2.39 -4.32 14.00 7.92 -2.57 15.30 6.73 5.14 -11.24
Constraint Benchmark 1 (%) 7.44 2.46 -4.43 17.13 7.50 -2.08 14.32 7.05 5.26 -11.18
  1Y 3Y 5Y 10y Incept.
-11.24 -0.13 2.27 3.81 4.16
Constraint Benchmark 1 (%)

as of Dec 31, 2022

-11.18 0.03 2.30 4.03 4.36
  YTD 1m 3M 6M 1Y 3Y 5Y 10y Incept.
-11.24 -0.07 4.38 3.46 -11.24 -0.39 11.89 45.28 52.40
Constraint Benchmark 1 (%)

as of Dec 31, 2022

-11.18 -0.62 4.17 3.50 -11.18 0.08 12.03 48.39 55.49
  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

-2.57 15.30 6.73 5.14 -11.24
Constraint Benchmark 1 (%)

as of Dec 31, 2022

-2.08 14.32 7.05 5.26 -11.18
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 27, 2023 USD 2,131,945,042
Share Class Inception Date Aug 29, 2012
Fund Inception Date Oct 29, 1993
Share Class Currency USD
Base Currency USD
Asset Class Fixed Income
Constraint Benchmark 1 Bloomberg U.S. Corporate High Yield 2% Issuer Capped Index
SFDR Classification Article 8
Initial Charge 0.00%
Ongoing Charge 0.60%
Annual Management Fee 0.55%
Performance Fee 0.00%
Minimum Initial Investment USD 10000000
Minimum Subsequent Investment -
Use of Income Accumulating
Domicile Luxembourg
Regulatory Structure UCITS
Management Company BlackRock (Luxembourg) S.A.
Morningstar Category USD High Yield Bond
Dealing Settlement Trade Date + 3 days
Dealing Frequency Daily, forward pricing basis
Bloomberg Ticker BGFUHI2
ISIN LU0822668108
SEDOL B765HB7

Portfolio Characteristics

Portfolio Characteristics

Number of Holdings as of Dec 30, 2022 1209
Standard Deviation (3y) as of Dec 31, 2022 10.75%
Yield to Maturity as of Dec 30, 2022 8.19%
Modified Duration as of Dec 30, 2022 4.04 yrs
Yield to Worst as of Dec 30, 2022 8.20%
Effective Duration as of Dec 30, 2022 3.75 yrs
Weighted Avg Maturity as of Dec 30, 2022 6.08 yrs
WAL to Worst as of Dec 30, 2022 6.08 yrs

Sustainability Characteristics

Sustainability Characteristics

Sustainability Characteristics provide investors with specific non-traditional metrics. Alongside other metrics and information, these enable investors to evaluate funds on certain environmental, social and governance characteristics. Sustainability Characteristics do not provide an indication of current or future performance nor do they represent the potential risk and reward profile of a fund. They are provided for transparency and for information purposes only. Sustainability Characteristics should not be considered solely or in isolation, but instead are one type of information that investors may wish to consider when assessing a fund.


The metrics are not indicative of how or whether ESG factors will be integrated into a fund. Unless otherwise stated in fund documentation and included within a fund’s investment objective, the metrics 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 methodologies behind Sustainability Characteristics using the links below.

MSCI ESG Fund Rating (AAA-CCC) as of Nov 21, 2022 BBB
MSCI ESG % Coverage as of Nov 21, 2022 69.47
MSCI ESG Quality Score (0-10) as of Nov 21, 2022 5.68
MSCI ESG Quality Score - Peer Percentile as of Nov 21, 2022 58.22
Fund Lipper Global Classification as of Nov 21, 2022 Bond USD High Yield
Funds in Peer Group as of Nov 21, 2022 383
MSCI Weighted Average Carbon Intensity (Tons CO2E/$M SALES) as of Nov 21, 2022 282.73
MSCI Weighted Average Carbon Intensity % Coverage as of Nov 21, 2022 67.64
All data is from MSCI ESG Fund Ratings as of Nov 21, 2022, based on holdings as of Jun 30, 2022. As such, the fund’s sustainable characteristics may differ from MSCI ESG Fund Ratings from time to time.

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.

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 42.00%
Percentage of Fund not covered as of Dec 30, 2022 57.99%
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 0.00% and for Oil Sands 0.00%.

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 the investment research, portfolio construction, and investment monitoring phases of the investment process. The Fund manager maintains internal ESG scorecards for new primary issuers under consideration for investment and existing issuers of publicly traded securities. These scorecards analyze and track internal and external research views across a range of environmental, social, and governance factors sourced from primary and third party ESG information and research. Portfolio management teams consider the sector and issuer ESG views and scores when selecting individual investments during portfolio construction. ESG factors are debated and considered in investment decisions. The Fund manager also considers ESG criteria during post-investment monitoring and 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.

Ratings

Ratings

Morningstar Rating

4 stars
Overall Morningstar Rating for BGF US Dollar High Yield Bond Fund, Class I2, as of Dec 31, 2022 rated against 674 USD High Yield Bond Funds.

Morningstar Analyst Rating

Morningstar Analyst Rating - Gold
Morningstar has awarded the Fund a Gold medal, its highest level of conviction. (Effective Sep 9, 2022)

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 (%)
CLARIOS GLOBAL LP 144A 8.5 05/15/2027 0.81
VERSCEND ESCROW CORP 144A 9.75 08/15/2026 0.68
PICARD MIDCO INC 144A 6.5 03/31/2029 0.66
ALLIANT HOLDINGS INTERMEDIATE LLC 144A 6.75 10/15/2027 0.62
ELEMENT SOLUTIONS INC 144A 3.875 09/01/2028 0.57
Name Weight (%)
ZAYO GROUP HOLDINGS INC 144A 4 03/01/2027 0.57
ENTEGRIS ESCROW CORP 144A 4.75 04/15/2029 0.56
BIG RIVER STEEL LLC 144A 6.625 01/31/2029 0.50
SPRINT CAPITAL CORPORATION 8.75 03/15/2032 0.49
NFP CORP 144A 6.875 08/15/2028 0.49
Holdings subject to change

Exposure Breakdowns

Exposure Breakdowns

as of Dec 30, 2022

% of Market Value

Type Fund
as of Dec 30, 2022

% of Market Value

Type Fund
as of Dec 30, 2022

% of Market Value

Type Fund
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
I2 USD Accumulating 15.85 0.01 0.06 Jan 27, 2023 16.83 14.60 LU0822668108 -
E2 EUR Accumulating 29.85 0.08 0.27 Jan 27, 2023 32.16 29.09 LU0277197595 -
A6 USD Monthly 4.29 0.01 0.23 Jan 27, 2023 4.89 4.03 LU0738912566 -
D2 Hgd AUD Accumulating 18.53 0.02 0.11 Jan 27, 2023 20.02 17.18 LU0827886895 -
D2 USD Accumulating 38.90 0.04 0.10 Jan 27, 2023 41.35 35.84 LU0552552704 -
A3 Hgd NZD Monthly 9.79 0.00 0.00 Jan 27, 2023 11.05 9.19 LU0803752046 -
D4 Hgd GBP Annual 9.27 0.00 0.00 Jan 27, 2023 10.53 8.60 LU0681219902 -
A3 Hgd GBP Monthly 8.44 0.00 0.00 Jan 27, 2023 9.59 7.94 LU0580330818 -
A2 Hgd SGD Accumulating 15.22 0.02 0.13 Jan 27, 2023 16.40 14.09 LU0578945809 -
A2 Hgd AUD Accumulating 17.30 0.01 0.06 Jan 27, 2023 18.82 16.08 LU0578947334 -
A8 Hgd CNH Monthly 88.39 0.06 0.07 Jan 27, 2023 102.78 83.87 LU1919856218 -
C1 USD Monthly 5.25 0.01 0.19 Jan 27, 2023 5.87 4.93 LU0147389166 -
D2 Hgd CHF Accumulating 11.04 0.01 0.09 Jan 27, 2023 12.11 10.31 LU1090156289 -
A3 Hgd SGD Monthly 8.71 0.00 0.00 Jan 27, 2023 9.81 8.17 LU0578937376 -
D2 Hgd EUR Accumulating 221.31 0.16 0.07 Jan 27, 2023 242.25 206.40 LU0532707519 -
A3 Hgd EUR Monthly 7.84 0.01 0.13 Jan 27, 2023 9.03 7.42 LU0578943853 -
A3 Hgd AUD Monthly 9.90 0.01 0.10 Jan 27, 2023 11.25 9.31 LU0578942376 -
D3 USD Monthly 9.09 0.00 0.00 Jan 27, 2023 10.17 8.50 LU0592702061 -
A2 Hgd CHF Accumulating 10.44 0.01 0.10 Jan 27, 2023 11.54 9.78 LU1090155554 -
I3 USD Monthly 8.56 0.00 0.00 Jan 27, 2023 9.58 8.01 LU0764821012 -
A3 USD Monthly 5.30 0.00 0.00 Jan 27, 2023 5.93 4.96 LU0172419151 -
D3 Hgd SGD Monthly 8.74 0.00 0.00 Jan 27, 2023 9.85 8.19 LU0827886978 -
X2 USD Accumulating 44.04 0.04 0.09 Jan 27, 2023 46.49 40.49 LU0147390172 -
D2 Hgd SGD Accumulating 16.25 0.01 0.06 Jan 27, 2023 17.40 15.01 LU0827887273 -
A4 Hgd GBP Annual 9.29 0.00 0.00 Jan 27, 2023 10.55 8.64 LU0706698544 -
A2 Hgd EUR Accumulating 204.48 0.14 0.07 Jan 27, 2023 225.41 191.15 LU0330917963 -
A3 Hgd CAD Monthly 8.95 0.01 0.11 Jan 27, 2023 10.07 8.38 LU0803751741 -
I4 Hgd GBP Annual 8.04 0.01 0.12 Jan 27, 2023 9.14 7.45 LU1111085442 -
A1 USD Monthly 5.24 0.01 0.19 Jan 27, 2023 5.87 4.92 LU0046675905 -
A2 USD Accumulating 35.95 0.03 0.08 Jan 27, 2023 38.49 33.20 LU0046676465 -
E2 USD Accumulating 32.43 0.03 0.09 Jan 27, 2023 34.90 30.00 LU0147389919 -
I2 Hgd EUR Accumulating 11.44 0.01 0.09 Jan 27, 2023 12.50 10.66 LU1111085798 -
A6 Hgd HKD Monthly 31.74 0.03 0.09 Jan 27, 2023 36.44 29.86 LU0764619531 -
A6 Hgd SGD Monthly 7.80 0.01 0.13 Jan 27, 2023 8.95 7.34 LU1314333441 -
A8 Hgd AUD Monthly 7.70 0.00 0.00 Jan 27, 2023 8.87 7.26 LU0871640396 -
C2 USD Accumulating 26.81 0.02 0.07 Jan 27, 2023 29.06 24.86 LU0147389596 -
A8 Hgd ZAR Monthly 77.73 0.07 0.09 Jan 27, 2023 88.95 72.90 LU1023056127 -
X6 USD Monthly 9.64 0.00 0.00 Jan 27, 2023 10.82 9.01 LU1376384019 -

Portfolio Managers

Portfolio Managers

James Keenan
Managing Director, CIO and Global Head of Credit for BlackRock Alternatives; Chairman and interim CEO of BlackRock Capital Investment Corporation

James E. Keenan, CFA, Managing Director, is Chief Investment Officer and Global Head of Credit for BlackRock Alternatives and Chairman and interim Chief Executive Officer of the BlackRock Capital Investment Corporation.

David Delbos
Co-Head of US High Yield, Global Credit

David Delbos

Mitchell S. Garfin
Co-Head of Leveraged Finance, BlackRock

Mitchell S. Garfin, CFA, Managing Director, is the Co-Head of Leveraged Finance within BlackRock's Global Credit team. He is responsible for managing US High Yield and Global strategies.

Literature

Literature