BlackRock Global Bond Income Fund

  • IMPORTANT:

    • The Global Bond Income Fund seeks an above average 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 generate above average 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 (which may be significant exposure) and unrated. Currency exposure is flexibly managed.

    IMPORTANT:

    • The Global Bond Income Fund seeks an above average 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 generate above average 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 (which may be significant exposure) and unrated. Currency exposure is flexibly managed.
    •  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.
    • 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.
    •  Class 6 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.
    • 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.
    • 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.
    • 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

Designed to deliver above-average income while managing downside risk

The BlackRock Global Bond Income Fund is designed to deliver an above average income, without sacrificing long term growth, by seeking diversified income sources. The Fund’s unconstrained approach provides the portfolio managers with the flexibility to allocate to and rotate across many sectors in the fixed income universe.

Opportunities for income can be found from diverse assets including emerging market debt (EMD), corporate bonds and securitised assets. Without the restrictions of benchmark weights, we can allocate capital based on our convictions and generate income from a multitude of sources across the globe.

4.9% annualized Yield
Annualized Yield – A6 USD

Latest (10/30/2020) dividend yield (A6 share class aims to pay a dividend on a monthly basis. Dividend Payment is not guaranteed. The Fund may effectively pay dividend from capital. See important information 4)

High credit quality rating

High credit quality rating

Holding a diversified and carefully constructed portfolio has the potential to reduce volatility - or severe drawdown risk - relative to holding a single fixed income sector alone. The Fund’s high quality income bias aims to deliver an above-average income, while also managing lower levels of volatility, by seeking diversified income sources.

The average portfolio yield on Global Bond Income Fund is similar to the average yield of B/BB US High Yield over the past six years, with a higher credit rating (BBB+) and less duration risk (2 versus 4 years)1

Quality Income

 

Source: Bloomberg, data from 01 Aug 2018 to 28 Feb 2019; BlackRock Global Bond Income Fund yield is the average portfolio yield. Global Investment Grade refers to Bloomberg Barclays Global Aggregate Credit Total Return Index Value Hedged USD; USD High Yield Bond refers to Bloomberg Barclays US Corporate High Yield Total Return Index Value Unhedged USD; Emerging Market Bonds refers to Bloomberg Barclays EM USD Aggregate Total Return Index Value Unhedged; Global Aggregate Bonds refers to Bloomberg Barclays Global-Aggregate Total Return Index Value Hedged USD. Index performance is for illustrative purpose only. Investors cannot directly invest into an index. 

 


Global diversified
income generation

Experienced investment team

In today’s markets, we believe investors will benefit from a well-diversified strategy with the scale and scope to harvest income from across the global investment universe. This is particularly important when higher income securities may exhibit increased volatility.

The Fund combines BlackRock’s highest conviction views across fundamental fixed income assets to create a diversified portfolio of income-generating assets. Our long-established portfolio management team have developed a tried-and-tested investment process which aims to ‘earn a little income, a lot of times through many diversified positions’. This should generate a durable and diversified income stream.

 


Experienced investment team

Experienced investment team

The Fund is managed by BlackRock's Global CIO of fixed income, Rick Rieder, in conjunction with Amer Bisat, Robert Wuertz and Andreas Doerrenhaus. The Fund builds on the success of our global multi-sector bond platform led by Rick and leverages the team’s experience in managing unconstrained strategies since 2010.

Specialists in every fixed income sector and local presence in 30 countries2 help us scour the globe to find new ways of confronting today’s challenges.

The lead portfolio managers bring together deep expertise across every sector and are supported by local presence in 30 countries and our Risk & Quantitative Analysis (RQA) group, which provides continued bottom-up risk oversight.