Fixed Income

BGF Global Corporate 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.

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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  2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Total Return (%) 4.44 4.78 -3.85 10.76 6.38 -1.70 -15.48
Constraint Benchmark 1 (%) 6.22 5.70 -1.00 12.51 8.26 -0.79 -14.11
  1Y 3Y 5Y 10y Incept.
-10.01 -3.42 -0.39 - 0.51
Constraint Benchmark 1 (%) -8.71 -2.21 1.37 - 2.07
  YTD 1m 3M 6M 1Y 3Y 5Y 10y Incept.
3.66 3.66 7.37 -1.54 -10.01 -9.93 -1.94 - 4.00
Constraint Benchmark 1 (%) 3.48 3.48 7.32 -1.20 -8.71 -6.48 7.05 - 17.25
  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

-3.85 10.76 6.38 -1.70 -15.48
Constraint Benchmark 1 (%)

as of Dec 31, 2022

-1.00 12.51 8.26 -0.79 -14.11
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 7, 2023 USD 1,011,033,349
Share Class Inception Date Apr 29, 2015
Fund Inception Date Oct 19, 2007
Share Class Currency GBP
Base Currency USD
Asset Class Fixed Income
Constraint Benchmark 1 BBG Global Agg Corporate Index, 100% USD Hedged
SFDR Classification Other
Initial Charge 5.00%
Ongoing Charge 0.67%
Annual Management Fee 0.45%
Performance Fee 0.00%
Minimum Initial Investment GBP 100000
Minimum Subsequent Investment GBP 1000
Use of Income Accumulating
Domicile Luxembourg
Regulatory Structure UCITS
Management Company BlackRock (Luxembourg) S.A.
Morningstar Category Global Corporate Bond - GBP Hedged
Dealing Settlement Trade Date + 3 days
Dealing Frequency Daily, forward pricing basis
Bloomberg Ticker BGD2RFG
ISIN LU1222731728
SEDOL BWXT999

Portfolio Characteristics

Portfolio Characteristics

Number of Holdings as of Jan 31, 2023 527
Standard Deviation (3y) as of Jan 31, 2023 8.46%
3y Beta as of Jan 31, 2023 0.993
Yield to Maturity as of Jan 31, 2023 4.95%
Modified Duration as of Jan 31, 2023 6.32 yrs
Yield to Worst as of Jan 31, 2023 4.95%
Effective Duration as of Jan 31, 2023 6.20 yrs
Weighted Avg Maturity as of Jan 31, 2023 7.99 yrs
WAL to Worst as of Jan 31, 2023 7.99 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 AA
MSCI ESG % Coverage as of Nov 21, 2022 92.41
MSCI ESG Quality Score (0-10) as of Nov 21, 2022 7.86
MSCI ESG Quality Score - Peer Percentile as of Nov 21, 2022 16.84
Fund Lipper Global Classification as of Nov 21, 2022 Bond Global Corporates USD
Funds in Peer Group as of Nov 21, 2022 95
MSCI Weighted Average Carbon Intensity (Tons CO2E/$M SALES) as of Nov 21, 2022 178.37
MSCI Weighted Average Carbon Intensity % Coverage as of Nov 21, 2022 85.95
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 0.87%
MSCI - UN Global Compact Violators as of Jan 31, 2023 2.55%
MSCI - Nuclear Weapons as of Jan 31, 2023 0.87%
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 2.24%

Business Involvement Coverage as of Jan 31, 2023 89.99%
Percentage of Fund not covered as of Jan 31, 2023 9.30%
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 1.25% and for Oil Sands 1.35%.

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

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 (%)
ORIGIN ENERGY FINANCE LTD MTN RegS 1 09/17/2029 0.79
TELEFONICA EUROPE BV 23 RegS 3 12/31/2049 0.79
BNP PARIBAS SA MTN 144A 5.125 01/13/2029 0.78
BPCE SA MTN RegS 4.375 07/13/2028 0.76
IMPERIAL BRANDS FINANCE PLC MTN RegS 1.125 08/14/2023 0.74
Name Weight (%)
HSBC HOLDINGS PLC 3.973 05/22/2030 0.72
CITIGROUP INC 4.412 03/31/2031 0.68
ING GROEP NV MTN RegS 4.7 03/22/2028 0.67
UK CONV GILT 1.5 07/31/2053 0.63
LLOYDS BANKING GROUP PLC 4.716 08/11/2026 0.62
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
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
D2 Hgd GBP Accumulating 9.62 -0.02 -0.21 Feb 7, 2023 10.55 8.78 LU1222731728 -
A6 USD Monthly 9.70 -0.02 -0.21 Feb 7, 2023 10.84 8.90 LU0788109634 -
A6 Hgd HKD Monthly 71.48 -0.14 -0.20 Feb 7, 2023 80.72 65.74 LU0788109550 -
D2 USD Accumulating 14.88 -0.02 -0.13 Feb 7, 2023 16.10 13.50 LU0326960662 -
A8 Hgd NZD Monthly 8.41 -0.01 -0.12 Feb 7, 2023 9.49 7.75 LU1149717313 -
A2 USD Accumulating 13.96 -0.02 -0.14 Feb 7, 2023 15.17 12.68 LU0297942194 -
A4 Hgd EUR Annual 7.83 -0.02 -0.25 Feb 7, 2023 8.88 7.19 LU0303846876 -
A3 Hgd NZD Monthly 10.85 -0.02 -0.18 Feb 7, 2023 12.11 9.98 LU0803752475 -
A2 Hgd EUR Accumulating 11.74 -0.03 -0.25 Feb 7, 2023 13.12 10.78 LU0297942434 -
I2 Hgd EUR Accumulating 9.50 -0.01 -0.11 Feb 7, 2023 10.54 8.70 LU1625162489 -
A8 Hgd CNH Monthly 87.60 -0.17 -0.19 Feb 7, 2023 100.08 81.33 LU1220227653 -
A3 Hgd CAD Monthly 9.92 -0.02 -0.20 Feb 7, 2023 11.04 9.10 LU0816460157 -
A5 USD Quarterly 10.10 -0.02 -0.20 Feb 7, 2023 11.18 9.23 LU0825403933 -
D5 Hgd GBP Quarterly 9.18 -0.01 -0.11 Feb 7, 2023 10.29 8.43 LU1814255474 -
I2 USD Accumulating 11.47 -0.02 -0.17 Feb 7, 2023 12.39 10.40 LU1181254019 -
A8 Hgd AUD Monthly 9.54 -0.02 -0.21 Feb 7, 2023 10.77 8.79 LU0871639976 -
X2 Hgd EUR Accumulating 13.60 -0.02 -0.15 Feb 7, 2023 15.03 12.44 LU0414062249 -
X4 Hgd GBP Annual 8.44 -0.01 -0.12 Feb 7, 2023 9.45 7.68 LU0414062165 -
A6 Hgd SGD Monthly 8.50 -0.01 -0.12 Feb 7, 2023 9.56 7.82 LU1435395121 -
A3 Hgd GBP Monthly 9.31 -0.02 -0.21 Feb 7, 2023 10.46 8.58 LU0816460231 -
E2 Hgd EUR Accumulating 10.91 -0.02 -0.18 Feb 7, 2023 12.24 10.03 LU0307653898 -
A3 Hgd AUD Monthly 10.62 -0.02 -0.19 Feb 7, 2023 11.93 9.79 LU0816460074 -
E2 USD Accumulating 12.92 -0.02 -0.15 Feb 7, 2023 14.11 11.75 LU0326961470 -
D2 Hgd EUR Accumulating 12.50 -0.03 -0.24 Feb 7, 2023 13.90 11.46 LU0326951752 -
A2 Hgd SEK Accumulating 94.52 -0.19 -0.20 Feb 7, 2023 105.04 86.71 LU1162516634 -
I2 Hgd CAD Accumulating 11.15 -0.02 -0.18 Feb 7, 2023 12.09 10.13 LU1153585614 -
I4 Hgd GBP Annual 9.01 -0.02 -0.22 Feb 7, 2023 10.08 8.22 LU1403442228 -
X2 USD Accumulating 16.14 -0.03 -0.19 Feb 7, 2023 17.35 14.61 LU0434566104 -

Portfolio Managers

Portfolio Managers

Michael Krautzberger
Managing Director, Head of EMEA Fundamental Fixed Income

Michael Krautzberger, CFA, EFFAS, Managing Director. Michael is Head of the Fundamental Pan European Fixed Income team.

Stephan Bassas
Lead Portfolio Manager for US Investment Grade Credit

Stephan Bassas

Tom Mondelaers
Tom Mondelaers

Literature

Literature