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PUTTING MONEY TO WORK

BlackRock Sustainable Global Bond Income Fund

Fixed Income investing across uncertain markets
  • IMPORTANT:

    • The Fund seeks to maximise income without sacrificing long term capital growth in a manner consistent with the principles of environmental, social and governance ("ESG") focused investing.

    The Fund seeks to maximise income without sacrificing long term capital growth in a manner consistent with the principles of environmental, social and governance ("ESG") focused investing. 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 (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 A中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. Use of environmental, social and governance (“ESG”) criteria as the investing principles may impact the Fund’s performance. Reliance on third party data may lead to incorrect evaluation of a security or issuer based on ESG criteria. There may also be a risk of incorrectly applying the relevant ESG criteria on the Fund. 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 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.
    • 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. 

Don’t miss the boat with bonds

Key considerations

  • 01

    Yields at decade high

    Yields are at decade highs across the fixed income spectrum. Higher rates may set the stage for higher expected returns and a “yield cushion” that can potentially hedge against multiple scenarios.

  • 02

    Fed pause

    A Fed pause has historically been a good entry point for bonds. Bonds tend to outperform cash when the Fed is at pause or cutting rates.

  • 03

    Flexible investing

    Market volatility is calling for a more flexible approach to investing, allowing for the dynamic capture of investment opportunities as they arise while also seeking to limit potential drawdowns.

Why invest in BlackRock Sustainable Global Bond Income Fund?

BlackRock Sustainable Global Bond Income Fund aims to maximize income per unit of risk by investing across the whole Fixed Income universe without geographical and sectoral bias.

Maximize income per unit of risk

The Fund generates competitive yield with lower volatility through a high quality, diversified portfolio.

Chart to show yield per unit volatility

Morningstar as at end November 2023. Yield per unit volatility = Trailing 12-month yield/12-month volatility. The trailing 12-month yield is calculated by summing the income distributions over the trailing 12 months and dividing that by the sum of the last month’s ending NAV plus any capital gains distributed over the 12-month period. A6 share class aims to pay dividends on a monthly basis. Dividend Payment is not guaranteed and is not indicative of the return of the Fund. The Fund may effectively pay dividend from capital. See Important Information 4. Peer group refers to all surviving funds in Global flexible bond USD hedged categorised by Morningstar. Peer comparison shown is for illustrative purposes only and does not purport to compare all funds in the same investment universe nor does it compare all characteristics of the funds shown. Investment involves risks. Past performance is not a guide to future performance.

   

Flexible and diversified portfolio that adapts to changing market regimes

The Fund does not have a benchmark which means it can dynamically allocate assets across a broad spectrum of fixed income sectors with no geographical and sectoral bias. The Fund also manages duration flexibly, and currently focuses on front-end and high-quality Fixed Income assets given relatively attractive competitive yields and lower volatility levels.

Chart to show fund duration exposure over time

BlackRock, Bloomberg as of 31 December 2023 unless specify. Diversification and asset allocation may not fully protect you from market risk.

  

Take advantages of unique opportunities amidst a complex landscape

There is a significant difference in performance between the best and worst performing fixed income sectors during 2018-2022. The Fund has a wide opportunity set and no systematic or structural bias towards any particular asset class. Through active management and security selection, the Fund is able to seeks to optimize income per unit of risk.

Chart to show annual total return by sector and by asset classes

Table chart on the left: Bloomberg as of 30 September2023Index performance returns does not reflect any management fees, transaction costs or expenses. Indexes are unmanaged therefore direct investment is not possible. Annual Return Dispersion refers to the highest category annual return minus the lowest category annual return.

Bar chart on the right: BlackRock, Bloomberg as of 31 October2023.

  

BlackRock’s active fixed income platform

With $1,053 billion of client assets entrusted to BlackRock’s active fixed income managers.1
Competitive performance
99% of our active bond mutual fund assets outperformed within their Morningstar peer groups.2
Deep market expertise
500+ global fixed income analysts employ an investment process that blends disciplined portfolio construction with regular risk & performance reviews.3
World-wide reach
21 primary investment centers worldwide allow investment teams to benefit from sharing across asset classes and regions.4