Fixed Income

BGF Euro 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

Performance chart data not available for display.
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  2018 2019 2020 2021 2022
Total Return (%) 4.07 -3.91 -17.25
Constraint Benchmark 1 (%) 4.07 -2.88 -17.22
  1Y 3Y 5Y 10y Incept.
-17.25 -6.12 - - -4.11
Constraint Benchmark 1 (%)

as of Dec 31, 2022

-17.22 -5.77 - - -3.83
  YTD 1m 3M 6M 1Y 3Y 5Y 10y Incept.
-17.25 -3.17 -0.35 -5.22 -17.25 -17.25 - - -14.60
Constraint Benchmark 1 (%)

as of Dec 31, 2022

-17.22 -3.66 -1.22 -5.77 -17.22 -16.33 - - -13.65
  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

- - 4.07 -3.91 -17.25
Constraint Benchmark 1 (%)

as of Dec 31, 2022

- - 4.07 -2.88 -17.22
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 26, 2023 EUR 3,020,827,568
Share Class Inception Date Mar 27, 2019
Fund Inception Date Mar 31, 1994
Share Class Currency EUR
Base Currency EUR
Asset Class Fixed Income
Constraint Benchmark 1 BBG Euro Aggregate 500+
SFDR Classification Other
Initial Charge 5.00%
Ongoing Charge 0.97%
Annual Management Fee -
Performance Fee -
Minimum Initial Investment EUR 25000
Minimum Subsequent Investment EUR 1000
Use of Income Accumulating
Domicile Luxembourg
Regulatory Structure UCITS
Management Company BlackRock (Luxembourg) S.A.
Morningstar Category EUR Diversified Bond
Dealing Settlement Trade Date + 3 days
Dealing Frequency Daily, forward pricing basis
Bloomberg Ticker BGEBAI2
ISIN LU1960220827
SEDOL BHL2TF1

Portfolio Characteristics

Portfolio Characteristics

Number of Holdings as of Dec 30, 2022 857
Standard Deviation (3y) as of Dec 31, 2022 6.86%
3y Beta as of Dec 31, 2022 1.020
Yield to Maturity as of Dec 30, 2022 3.90%
Modified Duration as of Dec 30, 2022 6.47 yrs
Yield to Worst as of Dec 30, 2022 3.91%
Effective Duration as of Dec 30, 2022 6.50 yrs
Weighted Avg Maturity as of Dec 30, 2022 7.04 yrs
WAL to Worst as of Dec 30, 2022 7.04 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 92.15
MSCI ESG Quality Score (0-10) as of Nov 21, 2022 8.06
MSCI ESG Quality Score - Peer Percentile as of Nov 21, 2022 71.96
Fund Lipper Global Classification as of Nov 21, 2022 Bond EUR
Funds in Peer Group as of Nov 21, 2022 296
MSCI Weighted Average Carbon Intensity (Tons CO2E/$M SALES) as of Nov 21, 2022 68.66
MSCI Weighted Average Carbon Intensity % Coverage as of Nov 21, 2022 51.62
All data is from MSCI ESG Fund Ratings as of Nov 21, 2022, based on holdings as of May 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 Dec 30, 2022 0.00%
MSCI - UN Global Compact Violators as of Dec 30, 2022 0.70%
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 0.40%

Business Involvement Coverage as of Dec 30, 2022 49.84%
Percentage of Fund not covered as of Dec 30, 2022 50.32%
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 0.73%.

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 Euro Bond Fund, Class AI2, as of Dec 31, 2022 rated against 1205 EUR Diversified Bond Funds.

Morningstar Analyst Rating

Morningstar Analyst Rating - Silver
Morningstar has awarded the Fund a Silver medal. Fewer than 10% of US open-end funds hold medalist ratings. (Effective Jul 6, 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 (%)
ITALY (REPUBLIC OF) 4 04/30/2035 1.66
FRANCE (REPUBLIC OF) 0.75 02/25/2028 1.66
FRANCE (REPUBLIC OF) 2.25 05/25/2024 1.53
BANK OF NOVA SCOTIA RegS 0.01 09/14/2029 0.91
BELGIUM (KINGDOM OF) 1.25 04/22/2033 0.85
Name Weight (%)
CAISSE AMORTISSEMENT DE LA DETTE S RegS 2.875 05/25/2027 0.84
EUROPEAN FINANCIAL STABILITY FACIL RegS 0 10/15/2025 0.82
FRANCE (REPUBLIC OF) 0.5 05/25/2040 0.81
EUROPEAN FINANCIAL STABILITY FACIL MTN RegS 0.75 05/03/2027 0.72
HESSE (STATE OF) RegS 0 04/25/2025 0.71
Holdings subject to change

Exposure Breakdowns

Exposure Breakdowns

as of Dec 30, 2022

% of Market Value

Type Fund Benchmark Net
as of Dec 30, 2022

% of Market Value

Type Fund Benchmark Net
as of Dec 30, 2022

% of Market Value

Type Fund Benchmark Net
as of Dec 30, 2022

% 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 AI2 EUR - 8.79 -0.03 -0.34 Jan 26, 2023 10.25 8.40 LU1960220827 -
A1 USD Monthly 18.92 -0.08 -0.42 Jan 26, 2023 22.92 16.14 LU0171278889 -
D4 GBP Annual 20.76 -0.11 -0.53 Jan 26, 2023 22.98 19.51 LU0827877712 -
A3 USD Monthly 18.93 -0.07 -0.37 Jan 26, 2023 22.91 16.14 LU0172748641 -
D3 USD Monthly 19.03 -0.08 -0.42 Jan 26, 2023 23.05 16.23 LU0827877639 -
A2 USD Accumulating 28.06 -0.12 -0.43 Jan 26, 2023 33.91 23.90 LU0171279184 -
A4 GBP Annual 20.61 -0.11 -0.53 Jan 26, 2023 22.82 19.38 LU0204069685 -
D3 EUR Monthly 17.48 -0.06 -0.34 Jan 26, 2023 20.42 16.73 LU0827877555 -
D2 USD Accumulating 29.67 -0.12 -0.40 Jan 26, 2023 35.73 25.24 LU0827877472 -
A2 Hgd PLN Accumulating 102.25 -0.30 -0.29 Jan 26, 2023 112.19 95.82 LU1499592381 -
I4 Hgd GBP Annual 9.74 -0.03 -0.31 Jan 26, 2023 11.21 9.26 LU1376384282 -
E2 USD Accumulating 24.89 -0.10 -0.40 Jan 26, 2023 30.23 21.23 LU0171279937 -
D2 EUR Accumulating 27.25 -0.10 -0.37 Jan 26, 2023 31.66 26.01 LU0297941469 -
D4 Hgd GBP Annual 9.71 -0.04 -0.41 Jan 26, 2023 11.18 9.24 LU1376384365 -
A2 EUR Accumulating 25.78 -0.09 -0.35 Jan 26, 2023 30.05 24.63 LU0050372472 -
A1 EUR Monthly 17.38 -0.06 -0.34 Jan 26, 2023 20.31 16.64 LU0118259232 -
Class I4 EUR Annual 8.93 -0.03 -0.33 Jan 26, 2023 10.41 8.52 LU1808491655 -
C2 USD Accumulating 20.65 -0.09 -0.43 Jan 26, 2023 25.27 17.65 LU0331283399 -
E5 EUR Quarterly 21.34 -0.07 -0.33 Jan 26, 2023 25.00 20.41 LU0500207468 -
A4 EUR Annual 23.34 -0.08 -0.34 Jan 26, 2023 27.21 22.30 LU0430265933 -
E2 EUR Accumulating 22.86 -0.08 -0.35 Jan 26, 2023 26.79 21.87 LU0090830810 -
A3 EUR Monthly 17.39 -0.06 -0.34 Jan 26, 2023 20.30 16.63 LU0172396516 -
Class S4 EUR Annual 8.96 -0.03 -0.33 Jan 26, 2023 10.45 8.55 LU1722863484 -
C2 EUR Accumulating 18.97 -0.07 -0.37 Jan 26, 2023 22.40 18.19 LU0147393358 -
D4 EUR Annual 10.38 -0.04 -0.38 Jan 26, 2023 12.10 9.91 LU0938162699 -
I2 EUR Accumulating 13.14 -0.04 -0.30 Jan 26, 2023 15.24 12.53 LU0368229703 -
X2 EUR Accumulating 29.73 -0.11 -0.37 Jan 26, 2023 34.35 28.34 LU0298377911 -
I2 Hgd USD Accumulating 10.90 -0.03 -0.27 Jan 26, 2023 12.35 10.31 LU1376384100 -
I2 Hgd JPY Accumulating 922.00 -3.00 -0.32 Jan 26, 2023 1,079.00 884.00 LU1668661629 -
A2 Hgd JPY Accumulating 897.00 -4.00 -0.44 Jan 26, 2023 1,055.00 862.00 LU1668663914 -
D2 Hgd USD Accumulating 12.78 -0.04 -0.31 Jan 26, 2023 14.50 12.09 LU0869640077 -
D2 Hgd CHF Accumulating 10.37 -0.04 -0.38 Jan 26, 2023 12.13 9.94 LU1266592374 -
I2 Hgd CHF Accumulating 9.26 -0.03 -0.32 Jan 26, 2023 10.81 8.87 LU1180456292 -
I4 Hgd USD Annual 9.80 -0.03 -0.31 Jan 26, 2023 11.16 9.27 LU1808491812 -
A2 Hgd USD Accumulating 12.32 -0.04 -0.32 Jan 26, 2023 14.04 11.67 LU0869650977 -
A2 CZK Accumulating 613.83 -1.41 -0.23 Jan 26, 2023 758.41 603.10 LU1791174284 -

Portfolio Managers

Portfolio Managers

Ronald van Loon
Ronald van Loon
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.

Literature

Literature