Fixed Income

BGF Sustainable Global Bond Income 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. Credit risk, changes to interest rates and/or issuer defaults will have a significant impact on the performance of fixed income securities. Potential or actual credit rating downgrades may increase the level of risk. Asset backed securities and mortgage backed securities are subject to the same risks described for fixed income securities. These instruments may be subject to 'Liquidity Risk', have high levels of borrowing and may not fully reflect the value of underlying assets. 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

Performance chart data not available for display.
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Distributions

Record Date Ex-Date Payable Date
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  2018 2019 2020 2021 2022
Total Return (%) 0.44 -1.52 -9.51

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

  1Y 3Y 5Y 10y Incept.
-3.20 -1.79 - - -2.00
  YTD 1m 3M 6M 1Y 3Y 5Y 10y Incept.
-0.03 -0.82 -0.83 0.20 -3.20 -5.27 - - -7.84
  From
31-Mar-2018
To
31-Mar-2019
From
31-Mar-2019
To
31-Mar-2020
From
31-Mar-2020
To
31-Mar-2021
From
31-Mar-2021
To
31-Mar-2022
From
31-Mar-2022
To
31-Mar-2023
Total Return (%)

as of Mar 31, 2023

- - 14.43 -5.77 -4.90
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 EUR 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 Jun 6, 2023 USD 109,185,089
Share Class Inception Date May 15, 2019
Fund Inception Date Jul 16, 2018
Share Class Currency EUR
Base Currency USD
Asset Class Fixed Income
SFDR Classification Article 8
Initial Charge 5.00%
Ongoing Charge 1.23%
Annual Management Fee 1.00%
Performance Fee 0.00%
Minimum Initial Investment EUR 5000
Minimum Subsequent Investment EUR 1000
Distribution Frequency Monthly
Use of Income Distributing
Domicile Luxembourg
Regulatory Structure UCITS
Management Company BlackRock (Luxembourg) S.A.
Morningstar Category Global Flexible Bond - EUR Hedged
Dealing Settlement Trade Date + 3 days
Dealing Frequency Daily, forward pricing basis
Bloomberg Ticker BGBA6EH
ISIN LU1978683099
SEDOL BJNPC64

Portfolio Characteristics

Portfolio Characteristics

Number of Holdings as of May 31, 2023 589
12m Trailing Yield as of May 31, 2023 4.83%
Standard Deviation (3y) as of May 31, 2023 4.58%
Yield to Maturity as of May 31, 2023 7.49%
Modified Duration as of May 31, 2023 3.78 yrs
Yield to Worst as of May 31, 2023 7.48%
Effective Duration as of May 31, 2023 2.87 yrs
Weighted Avg Maturity as of May 31, 2023 7.51 yrs
WAL to Worst as of May 31, 2023 7.51 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 May 19, 2023 A
MSCI ESG % Coverage as of May 19, 2023 65.25
MSCI ESG Quality Score (0-10) as of May 19, 2023 6.27
MSCI ESG Quality Score - Peer Percentile as of May 19, 2023 60.29
Fund Lipper Global Classification as of May 19, 2023 Bond Global USD
Funds in Peer Group as of May 19, 2023 418
MSCI Weighted Average Carbon Intensity (Tons CO2E/$M SALES) as of May 19, 2023 180.43
MSCI Weighted Average Carbon Intensity % Coverage as of May 19, 2023 55.04
All data is from MSCI ESG Fund Ratings as of May 19, 2023, based on holdings as of Jan 31, 2023. 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% (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.

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 May 31, 2023 0.00%
MSCI - UN Global Compact Violators as of May 31, 2023 0.00%
MSCI - Nuclear Weapons as of May 31, 2023 0.00%
MSCI - Thermal Coal as of May 31, 2023 0.00%
MSCI - Civilian Firearms as of May 31, 2023 0.00%
MSCI - Oil Sands as of May 31, 2023 0.00%
MSCI - Tobacco as of May 31, 2023 0.00%

Business Involvement Coverage as of May 31, 2023 49.08%
Percentage of Fund not covered as of May 31, 2023 52.25%
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 0.30% and for Oil Sands 0.57%.

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 Sustainable Global Bond Income Fund, Class A6 Hedged, as of May 31, 2023 rated against 1050 Global Flexible Bond - EUR Hedged Funds.

Risk Indicator

Risk Indicator

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Low Risk High Risk
Low Yield High Yield

Holdings

Holdings

as of Apr 28, 2023
Name Weight (%)
UMBS 30YR TBA(REG A) 6.12
SPAIN (KINGDOM OF) 2.55 10/31/2032 1.64
FNMA 30YR UMBS SUPER 1.24
TELEFONICA EUROPE BV RegS 6.135 12/31/2079 0.73
BPCE SA MTN 144A 5.975 01/18/2027 0.69
Name Weight (%)
CIFC_17-1A B 144A 0.67
TENNET HOLDING BV RegS 2.995 12/31/2079 0.61
NCMS_18-SOX E 144A 0.59
CIFC_14-2RA B1 144A 0.56
HSBC HOLDINGS PLC 7.336 11/03/2026 0.55
Holdings subject to change

Exposure Breakdowns

Exposure Breakdowns

as of Apr 28, 2023

% of Market Value

Type Fund
as of Apr 28, 2023

% of Market Value

Type Fund
as of Apr 28, 2023

% of Market Value

Type Fund
as of Apr 28, 2023

% of Market Value

Type Fund
as of Apr 28, 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
A6 Hgd EUR Monthly 7.64 0.01 0.13 Jun 6, 2023 8.23 7.61 LU1978683099 -
A6 Hgd HKD Monthly 81.46 0.03 0.04 Jun 6, 2023 86.44 80.52 LU1978682877 -
Class X6 Hedged EUR Monthly 9.75 0.00 0.00 Jun 6, 2023 10.15 9.65 LU2521849021 -
Class Z2 Hedged CHF - 9.56 0.00 0.00 Jun 6, 2023 9.85 9.28 LU1893598968 -
Class ZI2 USD - 10.54 0.00 0.00 Jun 6, 2023 10.70 9.95 LU2533725755 -
Class E5 Hedged EUR Quarterly 8.12 0.01 0.12 Jun 6, 2023 8.62 8.01 LU1864663577 -
I2 EUR - 10.03 0.03 0.30 Jun 6, 2023 10.64 9.66 LU1864663817 -
Class D2 EUR Hedged EUR Accumulating 9.54 0.01 0.10 Jun 6, 2023 9.77 9.19 LU1842103639 -
A8 Hgd CNH Monthly 83.46 0.02 0.02 Jun 6, 2023 89.48 83.13 LU1978683685 -
A2 USD Accumulating 10.36 0.00 0.00 Jun 6, 2023 10.55 9.84 LU1842103399 -
A6 Hgd GBP Monthly 7.95 0.00 0.00 Jun 6, 2023 8.42 7.86 LU1978683255 -
A6 Hgd SGD Monthly 8.10 0.00 0.00 Jun 6, 2023 8.55 8.00 LU1978683172 -
I2 Hgd EUR - 9.67 0.00 0.00 Jun 6, 2023 9.90 9.31 LU1864663908 -
D2 EUR Accumulating 9.94 0.02 0.20 Jun 6, 2023 10.56 9.58 LU1864663650 -
A6 Hgd NZD Monthly 8.11 0.01 0.12 Jun 6, 2023 8.52 7.98 LU1978683412 -
A6 Hgd AUD Monthly 7.94 0.01 0.13 Jun 6, 2023 8.43 7.86 LU1978683339 -
Class E2 EUR Hedged EUR - 9.09 0.00 0.00 Jun 6, 2023 9.39 8.81 LU1842103985 -
Class I2 BRL Hedged (USD) USD - 9.43 -0.01 -0.11 Jun 6, 2023 9.47 7.75 LU2008661345 -
Class D2 USD USD Accumulating 10.61 0.00 0.00 Jun 6, 2023 10.79 10.04 LU1842103555 -
I2 USD - 10.71 0.01 0.09 Jun 6, 2023 10.87 10.12 LU1864663734 -
Class ZI2 Hedged EUR - 10.35 0.00 0.00 Jun 6, 2023 10.59 9.95 LU2533725672 -
A6 Hgd CAD Monthly 8.14 0.00 0.00 Jun 6, 2023 8.55 8.00 LU1978682950 -
Class D2 CHF Hedged CHF Accumulating 9.36 0.00 0.00 Jun 6, 2023 9.66 9.09 LU1842103712 -
Class AI2 EUR - 10.55 0.03 0.29 Jun 6, 2023 11.24 10.17 LU1960222526 -
Class AI5 Hedged EUR Quarterly 8.22 0.01 0.12 Jun 6, 2023 8.72 8.10 LU1960222443 -
Class Z2 Hedged EUR - 9.75 0.00 0.00 Jun 6, 2023 9.98 9.37 LU1893598885 -
Class AI2 Hedged EUR - 9.25 0.01 0.11 Jun 6, 2023 9.50 8.93 LU1960222369 -
A6 USD Monthly 8.35 0.01 0.12 Jun 6, 2023 8.73 8.18 LU1842103472 -
Class X2 USD USD - 10.97 0.01 0.09 Jun 6, 2023 11.12 10.33 LU1842104017 -
Class Z2 USD - 10.76 0.00 0.00 Jun 6, 2023 10.93 10.17 LU1893598703 -
Class D2 GBP Hedged GBP Accumulating 10.02 0.00 0.00 Jun 6, 2023 10.22 9.56 LU1842103803 -

Portfolio Managers

Portfolio Managers

Rick Rieder
Managing Director, CIO of Global Fixed Income, Head of Fundamental Fixed Income, Head of Global Allocation Investment Team

  

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.

Souheir Asba
Souheir Asba
Charlotte Widjaja
Charlotte Widjaja

Literature

Literature