Fixed Income

BGF Emerging Markets Bond Fund

  • NAV as of 27-Jan-2023 GBP 9.09
    52 WK: 7.68 - 10.38
  • 1 Day NAV Change as of 27-Jan-2023 0.00 (0.00%)

Overview

Investment Approach


The Fund aims to maximise the return on your investment through a combination of capital growth and income on the Fund’s assets.

The Fund invests at least 70% of its total assets in fixed income securities, which may include investments with a relatively low credit rating or which are unrated. These include bonds and money market instruments (i.e. debt securities with short term maturities) and may be issued by governments and government agencies of, and companies and supranationals (e.g. the Asian Development Bank) domiciled in, or the main business of which is in, emerging markets.

The investment adviser (IA) may use financial derivative instruments (FDIs) (i.e. investments the prices of which are based on one or more underlying assets) to help achieve the Fund’s investment objective and to reduce risk within the Fund’s portfolio. The Fund may, via FDIs, generate market leverage (i.e. where the Fund gains market exposure in excess of the value of its assets).

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. This Share Class may pay dividends or take charges from capital. While this may allow more income to be distributed, it may reduce the value

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

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Share Class and Benchmark performance displayed in GBP. Source: BlackRock. Performance is shown on a Net Asset Value (NAV) basis, with gross income reinvested. Source: BlackRock. Past performance is not a guide to future performance and should not be the sole factor of consideration when selecting a product.

This chart shows the fund's performance as the percentage loss or gain per year over the last 4 years. It can help you to assess how the fund has been managed in the past and compare it to its benchmark.

  2018 2019 2020 2021 2022
Total Return (%) 10.8 4.6 -2.4 -17.5
Constraint Benchmark 1 (%) 15.0 5.3 -1.8 -17.8
  1y 3y 5y 10y Incept.
Total Return (%)

as of 31-Dec-2022

-17.55 -5.57 - - -2.82
Constraint Benchmark 1 (%)

as of 31-Dec-2022

-17.78 -5.28 - - -1.02
  YTD 1m 3m 6m 1y 3y 5y 10y Incept.
Total Return (%)

as of 31-Dec-2022

-17.55 0.81 9.52 2.10 -17.55 -15.80 - - -12.60
Constraint Benchmark 1 (%)

as of 31-Dec-2022

-17.78 0.33 8.11 3.17 -17.78 -15.01 - - -4.69
  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 31-Dec-2022

- 10.78 4.62 -2.39 -17.55
Constraint Benchmark 1 (%)

as of 31-Dec-2022

- 15.04 5.26 -1.80 -17.78

The figures shown relate to past performance. Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy.

Share Class and Benchmark performance displayed in GBP, 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 27-Jan-2023 USD 1,036,829,809.64
Share Class launch date 18-Apr-2018
Fund Launch Date 01-Oct-2004
Share Class Currency GBP
Base Currency USD
Asset Class Fixed Income
Constraint Benchmark 1 J.P. Morgan Emerging Markets Bond Index Global Diversified Index
SFDR Classification Other
Initial Charge -
Ongoing Charges Figures 0.71%
Annual Management Fee -
Performance Fee -
Minimum Initial Investment GBP 10,000,000.00
Minimum Subsequent Investment GBP 1,000.00
Use of Income Accumulating
Domicile Luxembourg
Regulatory Structure UCITS
Management Company BlackRock (Luxembourg) S.A.
Morningstar Category -
Dealing Settlement Trade Date + 3 days
Dealing Frequency Daily, forward pricing basis
Bloomberg Ticker BGBI2GH
ISIN LU1806518533
SEDOL BYZNVY2

Portfolio Characteristics

Portfolio Characteristics

Number of Holdings as of 30-Dec-2022 265
Standard Deviation (3y) as of 31-Dec-2022 16.61%
3y Beta as of 31-Dec-2022 1.20
Yield to Maturity as of 30-Dec-2022 7.71%
Modified Duration as of 30-Dec-2022 5.65
Weighted Avg YTM as of 30-Dec-2022 7.72%
Effective Duration as of 30-Dec-2022 5.78 yrs
Weighted Avg Maturity as of 30-Dec-2022 11.49 yrs
WAL to Worst as of 30-Dec-2022 11.49 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 21-Nov-2022 BB
MSCI ESG % Coverage as of 21-Nov-2022 91.50
MSCI ESG Quality Score (0-10) as of 21-Nov-2022 3.14
MSCI ESG Quality Score - Peer Percentile as of 21-Nov-2022 24.82
Fund Lipper Global Classification as of 21-Nov-2022 Bond Emerging Markets Global HC
Funds in Peer Group as of 21-Nov-2022 419
MSCI Weighted Average Carbon Intensity (Tons CO2E/$M SALES) as of 21-Nov-2022 971.80
MSCI Weighted Average Carbon Intensity % Coverage as of 21-Nov-2022 15.22
All data is from MSCI ESG Fund Ratings as of 21-Nov-2022, based on holdings as of 30-Jun-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 30-Dec-2022 0.00%
MSCI - UN Global Compact Violators as of 30-Dec-2022 4.65%
MSCI - Nuclear Weapons as of 30-Dec-2022 0.00%
MSCI - Thermal Coal as of 30-Dec-2022 0.02%
MSCI - Civilian Firearms as of 30-Dec-2022 0.00%
MSCI - Oil Sands as of 30-Dec-2022 0.00%
MSCI - Tobacco as of 30-Dec-2022 0.00%
Business Involvement Coverage as of 30-Dec-2022 14.61%
Percentage of Fund not covered as of 30-Dec-2022 85.16%
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 0.44% and for Oil Sands 0.07%.

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 stage of the investment process. ESG information may be sourced from both internal and external sources and included in the Aladdin risk system. The Fund manager conducts 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.

Risk Indicator

Risk Indicator

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Low Risk High Risk
Typically low rewards Typically high rewards

 

Ratings

Portfolio Managers

Portfolio Managers

Amer Bisat
Amer Bisat
Managing Director, Head of Emerging Markets Fixed Income

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

Read More

Amer Bisat, PhD., Managing Director, is Head of Emerging Markets Fixed Income and a member of the Fundamental-GFI Executive Committee. In this role, he oversees the team managing the firm's EM portfolios across hard currency, local and corporate debt instruments. Mr. Bisat's service with the firm dates back to 2013. Prior to BlackRock, he was a partner in two macro hedge funds (Traxis and Rubicon), and held portfolio management responsibilities at Morgan Stanley and UBS. Between 1991 and 1998, he was a senior economist at the International Monetary Fund where he helped negotiate high profile programs with Russia, Ukraine, and Egypt.

 

Mr. Bisat taught graduate level economics courses at Columbia University, co-authored a book on globalization, and academic and policy papers on growth and financial sector development. He is a trustee of a number of cultural and art institutions, sits on the Advisory Council of the Carnegie Middle East Center, and is a member of the Council on Foreign Relations.

 

Mr. Bisat earned a BA in economics from the American University of Beirut and a PhD. in economics and finance from Columbia University.

Michel Aubenas
Michel Aubenas
Amer Bisat
Amer Bisat
Managing Director, Head of Emerging Markets Fixed Income

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

Read More

Amer Bisat, PhD., Managing Director, is Head of Emerging Markets Fixed Income and a member of the Fundamental-GFI Executive Committee. In this role, he oversees the team managing the firm's EM portfolios across hard currency, local and corporate debt instruments. Mr. Bisat's service with the firm dates back to 2013. Prior to BlackRock, he was a partner in two macro hedge funds (Traxis and Rubicon), and held portfolio management responsibilities at Morgan Stanley and UBS. Between 1991 and 1998, he was a senior economist at the International Monetary Fund where he helped negotiate high profile programs with Russia, Ukraine, and Egypt.

 

Mr. Bisat taught graduate level economics courses at Columbia University, co-authored a book on globalization, and academic and policy papers on growth and financial sector development. He is a trustee of a number of cultural and art institutions, sits on the Advisory Council of the Carnegie Middle East Center, and is a member of the Council on Foreign Relations.

 

Mr. Bisat earned a BA in economics from the American University of Beirut and a PhD. in economics and finance from Columbia University.

Holdings

Holdings

as of 30-Dec-2022
Name Weight (%)
OMAN SULTANATE OF (GOVERNMENT) RegS 6.5 03/08/2047 1.31
DOMINICAN REPUBLIC (GOVERNMENT) RegS 6 02/22/2033 1.30
PERU (REPUBLIC OF) 3 01/15/2034 1.25
COLOMBIA REPUBLIC OF (GOVERNMENT) 5 06/15/2045 1.17
BRAZIL (FEDERATIVE REPUBLIC OF) 5 01/27/2045 1.11
Name Weight (%)
EGYPT (ARAB REPUBLIC OF) MTN RegS 7.625 05/29/2032 1.08
ECUADOR REPUBLIC OF (GOVERNMENT) RegS 2.5 07/31/2035 1.08
QATAR (STATE OF) RegS 3.75 04/16/2030 1.06
QATAR (STATE OF) RegS 4.817 03/14/2049 1.05
BAHRAIN (KINGDOM OF) RegS 6.75 09/20/2029 1.03
Holdings subject to change

Exposure Breakdowns

Exposure Breakdowns

as of 30-Dec-2022

% of Market Value

Type Fund Benchmark Net
as of 30-Dec-2022

% of Market Value

Type Fund Benchmark Net
as of 30-Dec-2022

% of Market Value

Type Fund Benchmark Net
as of 30-Dec-2022

% of Market Value

Type Fund Benchmark Net
as of 30-Dec-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 I2 Hedged GBP - 9.09 0.00 0.00 27-Jan-2023 10.38 7.68 LU1806518533 -
Class X2 CAD - 27.77 -0.06 -0.22 27-Jan-2023 28.05 26.00 LU2545636172 -
Class X2 Hedged EUR None 16.99 0.00 0.00 27-Jan-2023 19.64 14.40 LU0343170543 -
Class I2 EUR None 15.53 0.03 0.19 27-Jan-2023 16.80 14.40 LU1048586868 -
Class I2 Hedged EUR None 10.12 0.00 0.00 27-Jan-2023 11.77 8.59 LU1057294727 -
Class A8 Hedged AUD Monthly 6.37 0.00 0.00 27-Jan-2023 7.75 5.47 LU0871639893 -
Class D3 EUR Monthly 7.53 0.02 0.27 27-Jan-2023 8.53 7.07 LU0827877126 -
Class I4 Hedged EUR Annual 7.68 0.00 0.00 27-Jan-2023 9.42 6.52 LU2075911060 -
Class AI5 Hedged EUR Quarterly 7.40 0.00 0.00 27-Jan-2023 9.03 6.37 LU1960220074 -
Class I4 USD Annual 8.11 0.00 0.00 27-Jan-2023 9.58 6.81 LU1806518293 -
Class D2 EUR None 17.14 0.03 0.18 27-Jan-2023 18.57 15.90 LU0827877043 -
Class A2 EUR None 15.63 0.03 0.19 27-Jan-2023 17.03 14.52 LU0200683885 -
Class I5 Hedged EUR Quarterly 7.10 0.00 0.00 27-Jan-2023 8.67 6.11 LU1323999216 -
Class D2 Hedged EUR None 14.84 -0.01 -0.07 27-Jan-2023 17.30 12.62 LU0827877399 -
Class A1 EUR Monthly 7.25 0.01 0.14 27-Jan-2023 8.22 6.81 LU0200683703 -
Class A8 Hedged CNH Monthly 79.94 -0.02 -0.03 27-Jan-2023 97.85 69.11 LU1919856051 -
Class E2 EUR None 14.30 0.03 0.21 27-Jan-2023 15.66 13.30 LU0200684180 -
Class C2 USD None 13.51 0.00 0.00 27-Jan-2023 15.45 11.40 LU0200681673 -
Class A3 EUR Monthly 7.51 0.01 0.13 27-Jan-2023 8.51 7.05 LU0200684008 -
Class A2 Hedged GBP None 10.21 0.00 0.00 27-Jan-2023 11.76 8.64 LU1057296771 -
Class D3 USD Monthly 8.18 0.00 0.00 27-Jan-2023 9.58 6.95 LU0827876821 -
Class I4 Hedged GBP Annual 7.92 0.00 0.00 27-Jan-2023 9.53 6.69 LU2075910922 -
Class A1 USD Monthly 7.88 0.00 0.00 27-Jan-2023 9.26 6.70 LU0200680436 -
Class A4 EUR Annual 10.34 0.02 0.19 27-Jan-2023 11.75 9.60 LU1072326561 -
Class A8 Hedged ZAR Monthly 71.71 -0.01 -0.01 27-Jan-2023 87.13 61.58 LU1109561420 -
Class D2 USD None 18.63 0.00 0.00 27-Jan-2023 20.93 15.64 LU0297941386 -
Class C1 USD Monthly 7.88 0.00 0.00 27-Jan-2023 9.26 6.70 LU0200681327 -
Class E2 USD None 15.53 -0.01 -0.06 27-Jan-2023 17.64 13.08 LU0200681830 -
Class A2 Hedged EUR None 13.97 0.00 0.00 27-Jan-2023 16.38 11.89 LU0413376566 -
Class X2 EUR None 19.18 0.03 0.16 27-Jan-2023 20.61 17.75 LU0988581723 -
Class X2 USD None 20.84 0.00 0.00 27-Jan-2023 23.23 17.46 LU0200682721 -
Class A6 USD Monthly 6.69 0.00 0.00 27-Jan-2023 8.01 5.72 LU0764617162 -
Class I2 Hedged CHF None 8.48 0.00 0.00 27-Jan-2023 9.82 7.21 LU1618350562 -
Class X5 Hedged EUR Quarterly 6.83 -0.01 -0.15 27-Jan-2023 8.35 5.88 LU1722865000 -
Class A6 Hedged GBP Monthly 6.62 0.00 0.00 27-Jan-2023 8.09 5.70 LU1408527916 -
Class E2 Hedged EUR None 8.97 -0.01 -0.11 27-Jan-2023 10.58 7.65 LU1062842882 -
Class A6 Hedged HKD Monthly 49.34 -0.01 -0.02 27-Jan-2023 59.60 42.26 LU0764619960 -
Class A3 USD Monthly 8.16 0.00 0.00 27-Jan-2023 9.56 6.94 LU0200680782 -
Class X5 Hedged CHF Quarterly 7.73 0.00 0.00 27-Jan-2023 9.40 6.66 LU1904800973 -
Class E5 Hedged EUR Quarterly 6.91 0.00 0.00 27-Jan-2023 8.44 5.95 LU1062842965 -
Class A2 USD None 16.98 0.00 0.00 27-Jan-2023 19.19 14.28 LU0200680600 -
Class AI2 Hedged EUR - 8.47 0.00 0.00 27-Jan-2023 9.93 7.21 LU1960219902 -
Class A2 CZK None 371.86 0.30 0.08 27-Jan-2023 415.81 355.65 LU1791181735 -
Class A8 Hedged NZD Monthly 7.07 0.00 0.00 27-Jan-2023 8.58 6.07 LU1408528138 -
Class I2 USD None 16.87 -0.01 -0.06 27-Jan-2023 18.93 14.16 LU1180455567 -
Class A6 Hedged CAD Monthly 7.00 0.00 0.00 27-Jan-2023 8.45 6.00 LU1408528054 -

Literature

Literature