Equity

BGF Systematic China A-Share Opportunities 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. Emerging markets are generally more sensitive to economic and political conditions than developed markets. Other factors include greater 'Liquidity Risk', restrictions on investment or transfer of assets, failed/delayed delivery of securities or payments to the Fund and sustainability-related risks. Investment risk is concentrated in specific sectors, countries, currencies or companies. This means the Fund is more sensitive to any localised economic, market, political, sustainability-related or regulatory events. The value of equities and equity-related securities can be affected by daily stock market movements. Other influential factors include political, economic news, company earnings and significant corporate events. The Fund may invest in China A-Shares via the Shanghai-Hong Kong Stock Connect which may expose the Fund to additional risks including quota limitations, uncertainty around the legal and regulatory framework, restrictions on selling in certain circumstances and clearing, settlement and custody risk which may expose the Fund to financial loss. 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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  2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Total Return (%) -25.71 44.43 45.82 1.32 -26.41
Constraint Benchmark 1 (%) -32.99 37.48 40.04 4.03 -27.23
  1Y 3Y 5Y 10y Incept.
-16.49 6.42 3.29 - 4.28
Constraint Benchmark 1 (%) -17.68 4.53 0.64 - 0.36
  YTD 1m 3M 6M 1Y 3Y 5Y 10y Incept.
5.66 -3.99 7.20 -0.24 -16.49 20.52 17.58 - 25.10
Constraint Benchmark 1 (%) 5.98 -4.00 7.89 -0.64 -17.68 14.22 3.23 - 1.92
  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

-25.71 44.43 45.82 1.32 -26.41
Constraint Benchmark 1 (%)

as of Dec 31, 2022

-32.99 37.48 40.04 4.03 -27.23
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 Mar 23, 2023 USD 553,488,761
Share Class Inception Date Oct 26, 2017
Fund Inception Date Oct 26, 2017
Share Class Currency USD
Base Currency USD
Asset Class Equity
Constraint Benchmark 1 MSCI CHINA A ONSHORE NET Index in USD (USD)
SFDR Classification Article 8
Initial Charge 0.00%
Ongoing Charge 0.87%
Annual Management Fee 0.50%
Performance Fee 0.00%
Minimum Initial Investment USD 10000000
Minimum Subsequent Investment USD 1000
Use of Income Accumulating
Domicile Luxembourg
Regulatory Structure UCITS
Management Company BlackRock (Luxembourg) S.A.
Morningstar Category China Equity - A Shares
Dealing Settlement Trade Date + 3 days
Dealing Frequency Daily, forward pricing basis
Bloomberg Ticker BGCAZ2U
ISIN LU1580143193
SEDOL BFCB373

Portfolio Characteristics

Portfolio Characteristics

Number of Holdings as of Feb 28, 2023 181
Standard Deviation (3y) as of Feb 28, 2023 23.38%
3y Beta as of Feb 28, 2023 0.985
P/E Ratio as of Feb 28, 2023 14.17
P/B Ratio as of Feb 28, 2023 1.82

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 Feb 7, 2023 B
MSCI ESG % Coverage as of Feb 7, 2023 90.62
MSCI ESG Quality Score (0-10) as of Feb 7, 2023 2.70
MSCI ESG Quality Score - Peer Percentile as of Feb 7, 2023 45.74
Fund Lipper Global Classification as of Feb 7, 2023 Equity China
Funds in Peer Group as of Feb 7, 2023 1,128
MSCI Weighted Average Carbon Intensity (Tons CO2E/$M SALES) as of Feb 7, 2023 162.30
MSCI Weighted Average Carbon Intensity % Coverage as of Feb 7, 2023 93.25
All data is from MSCI ESG Fund Ratings as of Feb 7, 2023, based on holdings as of Oct 31, 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 Feb 28, 2023 0.00%
MSCI - UN Global Compact Violators as of Feb 28, 2023 0.00%
MSCI - Nuclear Weapons as of Feb 28, 2023 0.00%
MSCI - Thermal Coal as of Feb 28, 2023 0.00%
MSCI - Civilian Firearms as of Feb 28, 2023 0.00%
MSCI - Oil Sands as of Feb 28, 2023 0.00%
MSCI - Tobacco as of Feb 28, 2023 0.00%

Business Involvement Coverage as of Feb 28, 2023 99.89%
Percentage of Fund not covered as of Feb 28, 2023 0.14%
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 0.81% 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 research and decision phases of the investment process. This may include relevant, internal ESG research which along with multiple other research insights, informs active portfolio weighting versus a reference benchmark (or weighting implemented to achieve an absolute return outcome, if applicable). The Fund manager conducts regular portfolio reviews with the Risk and Quantitative Analysis group and with the Chief Investment Officers. 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

4 stars
Overall Morningstar Rating for BGF Systematic China A-Share Opportunities Fund, Class Z2, as of Feb 28, 2023 rated against 334 China Equity - A Shares Funds.

Risk Indicator

Risk Indicator

1
2
3
4
5
6
7
Low Risk High Risk
Low Yield High Yield

Holdings

Holdings

as of Feb 28, 2023
Name Weight (%)
KWEICHOW MOUTAI CO LTD 4.79
PING AN INSURANCE GROUP CO OF CHINA LTD 4.46
CONTEMPORARY AMPEREX TECHNOLOGY CO LTD 4.35
LONGI GREEN ENERGY TECHNOLOGY CO LTD 3.63
BYD CO LTD 3.55
Name Weight (%)
GREE ELECTRIC APPLIANCES INC 3.12
SHANXI XINGHUACUN FEN WINE FACTORY CO LTD 3.01
CHINA STATE CONSTRUCTION ENGINEERING CORP LTD 2.92
SHENZHEN MINDRAY BIO-MEDICAL ELECTRONICS CO LTD 2.69
CHINA MERCHANTS BANK CO LTD 2.51
Holdings subject to change

Exposure Breakdowns

Exposure Breakdowns

as of Feb 28, 2023

% of Market Value

Type Fund Benchmark Net
as of Feb 28, 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
Class Z2 USD Accumulating 12.62 0.19 1.53 Mar 23, 2023 14.16 10.31 LU1580143193 -
Class SR2 USD - 10.41 0.16 1.56 Mar 23, 2023 11.68 8.50 LU2471417589 -
D2 GBP - 10.10 0.10 1.00 Mar 23, 2023 11.67 8.84 LU2028885262 -
A2 USD Accumulating 11.95 0.18 1.53 Mar 23, 2023 13.51 9.80 LU1580142542 -
X2 USD Accumulating 13.15 0.20 1.54 Mar 23, 2023 14.67 10.70 LU1580142971 -
Class S2 USD - 13.36 0.21 1.60 Mar 23, 2023 15.00 10.91 LU1992160405 -
A2 Hgd SGD Accumulating 10.70 0.16 1.52 Mar 23, 2023 12.24 8.85 LU1781817850 -
D2 USD Accumulating 12.43 0.18 1.47 Mar 23, 2023 13.98 10.16 LU1580142625 -
I2 USD Accumulating 12.62 0.19 1.53 Mar 23, 2023 14.16 10.31 LU1580142898 -
A2 CNH Accumulating 81.46 0.50 0.62 Mar 23, 2023 90.62 71.79 LU1741216995 -

Portfolio Managers

Portfolio Managers

Jeff Shen, PhD
Managing Director, Co-CIO of Active Equity and Co-Head of Systematic Active Equity

 Jeff Shen

Rui Zhao, PhD, CFA
Managing Director, Portfolio Manager and member of BlackRock's Systematic Active Equity team

Rui Zhao, PhD, CFA, Director and portfolio manager, is a member of the Asia Pacific and Emerging Markets Equity group within BlackRock's Scientific Active Equity team.

Literature

Literature