Fixed Income

BGF Sustainable Emerging Markets Local Currency 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. 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. Currency Risk: The Fund invests in other currencies. Changes in exchange rates will therefore affect the value of the investment. 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

View full chart

  2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Total Return (%) 11.78 -5.14 -2.08 -1.21 17.30
Constraint Benchmark 1 (%) 12.06 -5.26 -3.98 -5.33 13.36

Performance is shown after deduction of ongoing charges. Any entry and exit charges are excluded from the calculation.

  1Y 3Y 5Y 10y Incept.
1.34 3.40 1.67 - -
Constraint Benchmark 1 (%) 0.45 0.71 -0.20 - -
  YTD 1m 3M 6M 1Y 3Y 5Y 10y Incept.
-2.45 -1.42 -4.09 -2.45 1.34 10.54 8.66 - -
Constraint Benchmark 1 (%) -1.72 -1.57 -3.90 -1.72 0.45 2.13 -0.99 - -
  From
30-Jun-2019
To
30-Jun-2020
From
30-Jun-2020
To
30-Jun-2021
From
30-Jun-2021
To
30-Jun-2022
From
30-Jun-2022
To
30-Jun-2023
From
30-Jun-2023
To
30-Jun-2024
Total Return (%)

as of Jun 30, 2024

-2.45 0.77 -11.51 23.28 1.34
Constraint Benchmark 1 (%)

as of Jun 30, 2024

-1.13 -1.95 -13.09 16.99 0.45
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 AUD, 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 Jul 17, 2024
USD 551,897,653
Fund Inception Date
Jul 9, 2018
Base Currency
USD
Constraint Benchmark 1
J.P. Morgan ESG-Govt Bond Index Emerging Markets Global Diversified in AUD
Initial Charge
0.00%
ISIN
LU1860487682
Performance Fee
0.00%
Minimum Subsequent Investment
AUD 1000
Domicile
Luxembourg
Management Company
BlackRock (Luxembourg) S.A.
Dealing Settlement
Trade Date + 3 days
Bloomberg Ticker
BGELX2A
Share Class Inception Date
Aug 8, 2018
Share Class Currency
AUD
Asset Class
Fixed Income
SFDR Classification
Article 8
Ongoing Charge
0.10%
Annual Management Fee
0.00%
Minimum Initial Investment
AUD 10000000
Use of Income
Accumulating
Regulatory Structure
UCITS
Morningstar Category
Global Emerging Markets Bond - Local Currency
Dealing Frequency
Daily, forward pricing basis
SEDOL
BFYR5P1

Portfolio Characteristics

Portfolio Characteristics

Number of Holdings
as of Jun 28, 2024
185
3y Beta
as of Jun 30, 2024
0.987
Modified Duration
as of Jun 28, 2024
6.07 yrs
Effective Duration
as of Jun 28, 2024
6.11 yrs
WAL to Worst
as of Jun 28, 2024
7.43 yrs
Standard Deviation (3y)
as of Jun 30, 2024
9.13%
Yield to Maturity
as of Jun 28, 2024
8.33%
Yield to Worst
as of Jun 28, 2024
8.33%
Weighted Avg Maturity
as of Jun 28, 2024
7.43 yrs

Sustainability Characteristics

Sustainability Characteristics

To be included in MSCI ESG Fund Ratings, 65% (or 50% for bond funds and money market funds) 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. MSCI Ratings are currently unavailable for this fund.

ESG Integration

ESG Integration

ESG integration is the practice of incorporating financially material environmental, social and governance (ESG) data or information into the investment decision process with the objective of enhancing risk-adjusted returns of our clients’ 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 or strategy, but rather describes how ESG data or information is considered as part of the overall investment process.

The Fund manager includes ESG considerations in combination with other information in the research phase of the investment process. This may include relevant third-party insights, as well as internal engagement commentary and input from BlackRock Investment Stewardship on governance issues. The Fund manager conducts regular portfolio reviews with the Risk and Quantitative Analysis group and with the Chief Investment Officers. These reviews include discussion, where appropriate, 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 Sustainable Emerging Markets Local Currency Bond Fund, Class X2, as of Jun 30, 2024 rated against 863 Global Emerging Markets Bond - Local Currency Funds.

Risk Indicator

Risk Indicator

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

Holdings

Holdings

as of Jun 28, 2024
Name Weight (%)
POLAND (REPUBLIC OF) 6 10/25/2033 3.06
COLOMBIA (REPUBLIC OF) 7 03/26/2031 2.85
PERU (REPUBLIC OF) 6.95 08/12/2031 2.61
BRAZIL FEDERATIVE REPUBLIC OF (GOV 10 01/01/2029 2.38
COLOMBIA (REPUBLIC OF) 13.25 02/09/2033 2.35
Name Weight (%)
SOUTH AFRICA (REPUBLIC OF) 8.875 02/28/2035 1.83
BRAZIL FEDERATIVE REPUBLIC OF (GO 10 01/01/2027 1.67
MEXICO (UNITED MEXICAN STATES) (GO 7.75 05/29/2031 1.56
BRAZIL FEDERATIVE REPUBLIC OF (GOV 0 01/01/2026 1.54
SOUTH AFRICA (REPUBLIC OF) 8 01/31/2030 1.46
Holdings subject to change

Exposure Breakdowns

Exposure Breakdowns

as of Jun 28, 2024

% of Market Value

Type Fund Benchmark Net
as of Jun 28, 2024

% of Market Value

Type Fund Benchmark Net
as of Jun 28, 2024

% of Market Value

Type Fund Benchmark Net
as of Jun 28, 2024

% of Market Value

Type Fund Benchmark Net
as of Jun 28, 2024

% 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 NAV NAV Amount Change NAV % Change NAV As Of 52wk High 52wk Low ISIN
X2 AUD 16.32 -0.03 -0.18 Jul 17, 2024 16.80 15.32 LU1860487682
I2 Hgd EUR 9.91 0.00 0.00 Jul 17, 2024 10.18 8.94 LU1862385918
Class AI2 EUR 11.82 -0.06 -0.51 Jul 17, 2024 11.98 10.98 LU2144842858
I2 USD 11.93 0.01 0.08 Jul 17, 2024 12.13 10.59 LU1864665945
X2 USD 11.00 0.00 0.00 Jul 17, 2024 11.15 9.73 LU1817794461
D2 Hgd EUR 9.10 0.00 0.00 Jul 17, 2024 9.36 8.22 LU1817794628
Class E5 Hedged EUR 7.62 0.00 0.00 Jul 17, 2024 8.23 7.22 LU1864665861
I2 EUR 10.90 -0.06 -0.55 Jul 17, 2024 11.02 10.07 LU1864666083
Class AI2 Hedged EUR 10.61 0.00 0.00 Jul 17, 2024 10.94 9.62 LU2144843070
E2 Hgd EUR 9.66 0.00 0.00 Jul 17, 2024 9.98 8.79 LU1864665788
D2 USD 10.57 0.01 0.09 Jul 17, 2024 10.75 9.40 LU1817794388
D2 Hgd CHF 8.76 0.00 0.00 Jul 17, 2024 9.12 8.05 LU1817794891
A2 Hgd EUR 8.84 0.00 0.00 Jul 17, 2024 9.11 8.01 LU1817794545
Class ZI2 USD 12.90 0.00 0.00 Jul 17, 2024 13.11 11.44 LU2533726563
A2 USD 10.27 0.00 0.00 Jul 17, 2024 10.48 9.17 LU1860487765

Portfolio Managers

Portfolio Managers

Laurent Develay
Managing Director, Head of Emerging Markets Local Debt Investments

Laurent Develay, Managing Director, Head of Emerging Markets Local Debt Investments within BlackRock's Global Fixed Income Group.

Amer Bisat
Managing Director, Head of Emerging Markets Fixed Income

Amer Bisat, PhD., Managing Director, is Head of Emerging Markets (EM) Fixed Income and a member of the Fundamental-GFI Executive Committee.

Laurent Develay
Managing Director, Head of Emerging Markets Local Debt Investments

Laurent Develay, Managing Director, Head of Emerging Markets Local Debt Investments within BlackRock's Global Fixed Income Group.

Michal Wozniak, CFA
Vice President, Portfolio Manager for Emerging Markets Debt Portfolio Management team

Michal Wozniak, CFA, Director, is a Portfolio Manager for Emerging Markets Debt Portfolio Management team for Blackrock Global Fixed Income Group.

Literature

Literature