Fixed Income

BGF Global Government 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. Changes to interest rates, credit risk and/or issuer defaults will have a significant impact on the performance of fixed income securities. Noninvestment grade fixed income securities can be more sensitive to changes in these risks than higher rated 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.

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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 (%) 0.58 2.20 1.22 -1.39 5.35 6.24 -2.94 -15.21
Constraint Benchmark 1 (%) 1.30 3.75 2.14 2.60 7.59 6.11 -2.29 -12.86
  1Y 3Y 5Y 10y Incept.
-15.21 -4.38 -1.90 - -0.23
Constraint Benchmark 1 (%)

as of Dec 31, 2022

-12.86 -3.33 -0.06 - 1.33
  YTD 1m 3M 6M 1Y 3Y 5Y 10y Incept.
-15.21 -1.60 -0.81 -5.03 -15.21 -12.57 -9.17 - -1.90
Constraint Benchmark 1 (%)

as of Dec 31, 2022

-12.86 -2.08 -0.34 -4.16 -12.86 -9.66 -0.28 - 11.89
  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

-1.39 5.35 6.24 -2.94 -15.21
Constraint Benchmark 1 (%)

as of Dec 31, 2022

2.60 7.59 6.11 -2.29 -12.86
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 899,569,004
Share Class Inception Date Jul 2, 2014
Fund Inception Date May 14, 1987
Share Class Currency EUR
Base Currency USD
Asset Class Fixed Income
Constraint Benchmark 1 FTSE WGBI Index 100% Hedged in USD
SFDR Classification Article 8
Initial Charge 0.00%
Ongoing Charge 0.07%
Annual Management Fee 0.00%
Performance Fee 0.00%
Minimum Initial Investment EUR 10000000
Minimum Subsequent Investment EUR 1000
Use of Income Accumulating
Domicile Luxembourg
Regulatory Structure UCITS
Management Company BlackRock (Luxembourg) S.A.
Morningstar Category Global Bond - EUR Hedged
Dealing Settlement Trade Date + 3 days
Dealing Frequency Daily, forward pricing basis
Bloomberg Ticker BGGX2EH
ISIN LU1083813532
SEDOL BNQ4VL4

Portfolio Characteristics

Portfolio Characteristics

Number of Holdings as of Jan 31, 2023 667
Standard Deviation (3y) as of Dec 31, 2022 5.17%
Yield to Maturity as of Jan 31, 2023 3.75%
Modified Duration as of Jan 31, 2023 7.30 yrs
Yield to Worst as of Jan 31, 2023 3.74%
Effective Duration as of Jan 31, 2023 7.29 yrs
Weighted Avg Maturity as of Jan 31, 2023 7.61 yrs
WAL to Worst as of Jan 31, 2023 7.61 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 A
MSCI ESG % Coverage as of Nov 21, 2022 85.14
MSCI ESG Quality Score (0-10) as of Nov 21, 2022 6.16
MSCI ESG Quality Score - Peer Percentile as of Nov 21, 2022 39.88
Fund Lipper Global Classification as of Nov 21, 2022 Bond Global USD
Funds in Peer Group as of Nov 21, 2022 341
MSCI Weighted Average Carbon Intensity (Tons CO2E/$M SALES) as of Nov 21, 2022 311.11
MSCI Weighted Average Carbon Intensity % Coverage as of Nov 21, 2022 11.94
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 Jan 31, 2023 0.00%
MSCI - UN Global Compact Violators as of Jan 31, 2023 0.00%
MSCI - Nuclear Weapons as of Jan 31, 2023 0.00%
MSCI - Thermal Coal as of Jan 31, 2023 0.00%
MSCI - Civilian Firearms as of Jan 31, 2023 0.00%
MSCI - Oil Sands as of Jan 31, 2023 0.00%
MSCI - Tobacco as of Jan 31, 2023 0.00%

Business Involvement Coverage as of Jan 31, 2023 11.72%
Percentage of Fund not covered as of Jan 31, 2023 87.46%
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 0.06% 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 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

3 stars
Overall Morningstar Rating for BGF Global Government Bond Fund, Class X2 Hedged, as of Jan 31, 2023 rated against 566 Global Bond - EUR Hedged Funds.

Risk Indicator

Risk Indicator

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Low Risk High Risk
Low Yield High Yield

Holdings

Holdings

as of Jan 31, 2023
Name Weight (%)
GERMANY (FEDERAL REPUBLIC OF) 1.3 10/15/2027 4.13
TREASURY NOTE 0.25 06/30/2025 3.50
GERMANY (FEDERAL REPUBLIC OF) 0 10/10/2025 2.51
TREASURY NOTE 2.5 03/31/2027 2.27
SPAIN (KINGDOM OF) 2.55 10/31/2032 1.96
Name Weight (%)
EUROPEAN INVESTMENT BANK MTN 4.5 10/15/2025 1.47
JAPAN (GOVERNMENT OF) 30YR #74 1 03/20/2052 1.43
FRANCE (REPUBLIC OF) 0 02/25/2027 1.18
TREASURY NOTE 2.75 08/15/2032 1.15
TREASURY NOTE 3.125 08/31/2027 1.07
Holdings subject to change

Exposure Breakdowns

Exposure Breakdowns

as of Jan 31, 2023

% of Market Value

Type Fund
as of Jan 31, 2023

% of Market Value

Type Fund
as of Jan 31, 2023

% of Market Value

Type Fund
as of Jan 31, 2023

% of Market Value

Type Fund
as of Jan 31, 2023

% 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
X2 Hgd EUR Accumulating 10.02 -0.08 -0.79 Feb 6, 2023 11.27 9.65 LU1083813532 -
D3 USD Monthly 19.54 -0.15 -0.76 Feb 6, 2023 21.85 18.81 LU0827882043 -
I2 USD Accumulating 10.45 -0.08 -0.76 Feb 6, 2023 11.51 9.98 LU1567964413 -
A1 USD Monthly 19.49 -0.16 -0.81 Feb 6, 2023 21.80 18.76 LU0118256485 -
A3 Hgd GBP Monthly 8.80 -0.07 -0.79 Feb 6, 2023 9.95 8.51 LU1484781395 -
E2 USD Accumulating 25.12 -0.20 -0.79 Feb 6, 2023 27.94 24.08 LU0090845412 -
C2 Hgd EUR Accumulating 16.90 -0.14 -0.82 Feb 6, 2023 19.42 16.39 LU0297943838 -
C1 USD Monthly 17.74 -0.14 -0.78 Feb 6, 2023 19.91 17.07 LU0331285410 -
C2 USD Accumulating 20.77 -0.17 -0.81 Feb 6, 2023 23.26 19.96 LU0147382310 -
I4 Hgd EUR Annual 8.77 -0.07 -0.79 Feb 6, 2023 10.01 8.46 LU1811366183 -
X2 Hgd SEK Accumulating 92.93 -0.74 -0.79 Feb 6, 2023 104.01 89.50 LU1495984053 -
X2 Hgd NOK - 99.74 -0.82 -0.82 Feb 6, 2023 110.60 95.76 LU1806518707 -
D2 Hgd EUR Accumulating 24.25 -0.19 -0.78 Feb 6, 2023 27.45 23.41 LU0329591563 -
A2 Hgd EUR Accumulating 22.91 -0.18 -0.78 Feb 6, 2023 26.02 22.14 LU0297942863 -
A3 Hgd HKD Monthly 90.92 -0.72 -0.79 Feb 6, 2023 102.52 87.69 LU1484781478 -
D2 USD Accumulating 29.49 -0.23 -0.77 Feb 6, 2023 32.54 28.20 LU0540001038 -
A2 USD Accumulating 28.21 -0.22 -0.77 Feb 6, 2023 31.23 27.00 LU0006061385 -
X2 USD Accumulating 10.56 -0.09 -0.85 Feb 6, 2023 11.60 10.09 LU0462857607 -
A3 Hgd EUR Monthly 15.95 -0.13 -0.81 Feb 6, 2023 18.30 15.51 LU0297943168 -
C1 Hgd EUR Monthly 14.82 -0.12 -0.80 Feb 6, 2023 17.05 14.39 LU0297940818 -
A1 Hgd EUR Monthly 16.09 -0.13 -0.80 Feb 6, 2023 18.46 15.63 LU0297940495 -
D3 Hgd EUR Monthly 16.00 -0.13 -0.81 Feb 6, 2023 18.35 15.55 LU0827881821 -
C3 USD Monthly 18.91 -0.15 -0.79 Feb 6, 2023 21.13 18.23 LU0172412495 -
E2 Hgd EUR Accumulating 20.33 -0.16 -0.78 Feb 6, 2023 23.19 19.67 LU0297944059 -
A3 USD Monthly 19.52 -0.15 -0.76 Feb 6, 2023 21.83 18.79 LU0172412149 -

Portfolio Managers

Portfolio Managers

Bob Miller
Managing Director, Global Fixed Income Group

   

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

   

Chi Chen
Director, Global Fixed Income Investment Group

 Chi Chen, Director, is a Portfolio Manager in BlackRock's Global Fixed Income Investment Group, focusing on US multi-sector fixed income mandates and global government bond mandates.

Sam Summers
Director, Portfolio Manager

   

Literature

Literature