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BlackRock Global Bond Income Fund

Look beyond traditional bonds for more income possibilities.

  • IMPORTANT INFORMATION:

    i. The Global Bond Income Fund seeks to maximise income without sacrificing long term capital growth. The Fund invests at least 70% of its total assets in fixed income transferable securities denominated in various currencies 

    IMPORTANT INFORMATION:

    i. The Global Bond Income Fund seeks to maximise income without sacrificing long term capital growth. The Fund invests at least 70% of its total assets in fixed income transferable securities denominated in various currencies issued by governments, government agencies, companies and supranationals worldwide, including in emerging markets. In order to maximise income the Fund will seek diversified income sources across a variety of such fixed income transferable securities. The full spectrum of available fixed income securities may be utilised, including investment grade, non-investment grade and unrated. Currency exposure is flexibly managed.

    ii. The Fund may invest in debt securities that are subject to actual or perceived ratings downgrade. An increase in interest rates may adversely affect the value of the bonds held by the Fund. The Fund may invest in non-investment grade and unrated bonds that may be subject to higher default, volatility and liquidity risks. The Fund invests in bonds issued or guaranteed by governments or authorities, which may involve political, economic, default or other risks. The Fund invests in asset/ mortgage backed securities that may be subject to greater credit, liquidity, and interest rate risks and are often exposed to extension and prepayment risks. The Fund's income-generating investment strategy may reduce the potential for capital growth and future income of the Fund.

    iii. The Fund is subject to currency risk, emerging market risk, currency conversion risk including Renminbi denominated Classes, foreign investments restrictions risk, securities lending counterparty risk and contingent convertible bonds risk.

    iv. Class 3(G) Shares pay dividends gross of expenses. Class 6 Shares and Class 10 Shares pay dividends gross of expenses and/or from capital at the Directors’ discretion. Class 8 Shares pay dividends gross of expenses and/or from capital at the Directors’ discretion and include interest rate differentials arising from share class currency hedging. Negative interest rate differentials may decrease the dividends paid. Paying dividends gross of expenses may result in more income being available for distribution; however these shares may effectively pay dividends from capital – may amount to a partial return or withdrawal of an investor’s original investment or capital gains. All declared dividends result in an immediate reduction in the NAV price of the share class on the ex-dividend date.

    v. The Fund may use derivatives for hedging and for investment purposes. However, usage for investment purposes will not be extensive. The Fund may suffer losses from its derivatives usage.

    vi. The value of the Fund can be volatile and can go down substantially within a short period of time. It is possible that a certain amount of your investment could be lost.

    vii. Investors should not make investment decisions based on this document alone. Investors should refer to the Prospectus and Key Facts Statement for details including risk factors.

Why invest in the BlackRock Global Bond Income Fund

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Seek competitive income with resilience

Pursue compelling income opportunities through a quality investment-grade portfolio, built to manage market swings and support a smoother investment journey.
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Evolve with changing income opportunities

Give your portfolio the flexibility to access different bond sectors as markets change, rather than relying on one part of the market.
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Expand your income toolkit

Tap a wider mix of income sources, including “plus” sectors1 that may be harder to reach and offer additional sources of income and diversification.

Today’s yields continue to make a compelling case for fixed income. What’s changed is not the opportunity, but how investors should think about capturing it.

Rick Rieder
Rick Rieder
CIO of Global Fixed Income

Why your bond income strategy may need more flexibility

Today’s bond market offers more income potential than investors have seen in years. But shifts in interest rates, inflation and policy expectations mean income opportunities and risks can evolve quickly across sectors and regions.

That’s why your income portfolio may benefit from a broad and flexible income toolkit – one that combines traditional bonds with select “plus” sectors to seek income from more sources as markets evolve.

Beyond traditional bonds: expand your income toolkit

Traditional bonds still have an important role to play. But in today’s market, they may not capture the full income opportunity set. “Plus” sectors are less commonly used areas of the bond market that may offer additional sources of income and diversification – but often require specialist research, scale and access.
Comparison of traditional bond sectors and plus sectors

We actually have an opportunity with the yields where they are, you can run a high-quality portfolio that marries really well to other assets, and you can create a lot of yield.

For two decades, you had negative interest rates in parts of the world. You had zero interest rates, and you had to really stretch. You could do two things today. You can create a lot of income and you don't have to take much risk.

The nice thing about buying assets today that are high quality, is you're not giving up anything. They don't correlate with your risky assets. So, you create natural diversification without giving up much.

Things like agency mortgages, for years you had to pay up because they're liquid, because they're low risk. Today, the yields you get on them and the ability to manage the rest of your portfolio is fantastic.

Credit is still part of your portfolio, but I think you can evolve it. And I think as tight as spreads have become, you should look at other things - mortgages are interesting.

And then I think this will be the year of emerging markets. Now you have a dollar that's not appreciating and may depreciate. You've got central banks that are cutting interest rates and you've got real yield.

I think two or three years from now with productivity going where it's going that I think you'll have inflation come down and these yields, you won't see these yields again. I mean, I've waited two decades, three decades to see these sorts of opportunities.

I would lock a good deal of it in, now.

Explore today's income opportunities

High-quality income is back – with more balanced tradeoffs. Should it play a bigger role in your portfolio?

Rick Rieder explains why select areas of fixed income may offer a rare combination of compelling yield, diversification, and resilience today.

Frequently asked questions

  • The BlackRock Global Bond Income Fund is a fixed income fund that seeks to provide income by investing across a broad range of global bond markets. It combines traditional bond sectors with select “plus” sectors to help investors access more sources of income and diversification.

  • The Fund looks for income opportunities across different areas of the bond market, including investment grade bonds and select plus sectors. Its flexible approach allows the investment team to seek compelling income opportunities for the portfolio as market conditions change.

  • Traditional bond funds may focus mainly on government bonds or investment grade corporate bonds. The BlackRock Global Bond Income Fund can invest across a wider bond universe, including plus sectors that may offer additional sources of income and diversification.

  • “Plus” sectors are less commonly used areas of the bond market that may offer additional income and diversification potential. Examples may include high yield corporate debt, asset-backed securities, collateralized loan obligations, non-agency residential mortgage-backed securities, local currency bonds and options premium strategies.

  • The Fund can be used as part of an income portfolio striving to help investors seek bond income from multiple sources. It may also help diversify a portfolio by providing exposure to a broader range of fixed income sectors.