Fixed Income

BSF ESG Euro Bond Fund

Overview

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.

All financial investments involve an element of risk. Therefore, the value of your investment and the income from it will vary and your initial investment amount cannot be guaranteed. The fund invests a large portion of assets which are denominated in other currencies; hence changes in the relevant exchange rate will affect the value of the investment. The fund invests in fixed interest securities such as corporate or government bonds which pay a fixed or variable rate of interest (also known as the ‘coupon’) and behave similarly to a loan. These securities are therefore exposed to changes in interest rates which will affect the value of any securities held. The fund invests in fixed interest securities issued by companies which, compared to bonds issued or guaranteed by governments, are exposed to greater risk of default in the repayment of the capital provided to the company or interest payments due to the fund. The Fund utilizes derivatives as part of its investment strategy. Compared to a fund which only invests in traditional instruments such as stocks and bonds, derivatives are potentially subject to a higher level of risk and volatility. The strategies utilized by the Fund involve the use of derivatives to facilitate certain investment management techniques including the establishment of both ‘long’ and ‘synthetic short’ positions and creation of market leverage for the purposes of increasing the economic exposure of a Fund beyond the value of its net assets. The use of derivatives in this manner may have the effect of increasing the overall risk profile of the Fund. The fund investments may be subject to liquidity constraints, which means that shares may trade less frequently and in small volumes, for instance smaller companies. As a result, changes in the value of investments may be more unpredictable. In certain cases, it may not be possible to sell the security at the last market price quoted or at a value considered to be fairest. The insolvency of any institutions providing services such as safekeeping of assets or acting as counterparty to derivatives or other instruments, may expose the Fund to financial loss.
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Performance

Performance

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This chart shows the fund's performance as the percentage loss or gain per year over the last 5 years. It can help you to assess how the fund has been managed in the past and compare it to its benchmark.

  2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Total Return (%) 0.86 -0.14 6.06 4.54 -3.69
Constraint Benchmark 1 (%) 0.51 0.55 5.96 4.21 -2.98
  1y 3y 5y 10y Incept.
-10.78 -2.54 -0.71 - -0.99
Constraint Benchmark 1 (%) -10.19 -2.32 -0.49 - -
  YTD 1m 3m 6m 1y 3y 5y 10y Incept.
-10.28 -1.75 -6.91 -11.19 -10.78 -7.42 -3.48 - -5.60
Constraint Benchmark 1 (%) -10.02 -1.53 -7.02 -11.16 -10.19 -6.80 -2.44 - -
  From
31-Mar-2017
To
31-Mar-2018
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
Total Return (%)

as of 31-Mar-2022

2.46 1.79 2.11 3.63 -7.18
Constraint Benchmark 1 (%)

as of 31-Mar-2022

2.44 2.17 2.68 2.89 -6.31

Key Facts

Key Facts

Net Assets of Fund as of 28-Jun-2022 EUR 494,249,801
Share Class launch date 23-Aug-2016
Fund Launch Date 23-Aug-2016
Share Class Currency EUR
Fund Base Currency EUR
Asset Class Fixed Income
Constraint Benchmark 1 BBG MSCI Euro Aggregate Sustainable SRI Index
SFDR Classification Article 8
Initial Charge 5.00%
Ongoing Charges Figures 0.63%
Annual Management Fee 0.65%
Performance Fee 0.00%
Minimum Initial Investment EUR 100,000.00
Minimum Subsequent Investment -
Use of Income Accumulating
Domicile Luxembourg
Regulatory Structure UCITS
Management Company BlackRock (Luxembourg) S.A.
Morningstar Category EUR Diversified Bond
Dealing Settlement Trade Date + 3 days
Dealing Frequency Daily, forward pricing basis
Bloomberg Ticker BSSED2E
ISIN LU1435395808
SEDOL BDC7ZV5

Portfolio Characteristics

Portfolio Characteristics

Number of Holdings as of 31-May-2022 592
Standard Deviation (3y) as of 31-May-2022 4.86%
3y Beta as of 31-May-2022 1.015
Yield to Maturity as of 31-May-2022 2.54
Modified Duration as of 31-May-2022 7.15
Weighted Average YTM as of 31-May-2022 2.50
Effective Duration as of 31-May-2022 7.16
Weighted Avg Maturity as of 31-May-2022 8.08
WAL to Worst as of 31-May-2022 8.08

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 06-May-2022 AA
MSCI ESG % Coverage as of 06-May-2022 95.27
MSCI ESG Quality Score (0-10) as of 06-May-2022 7.59
MSCI ESG Quality Score - Peer Percentile as of 06-May-2022 59.55
Fund Lipper Global Classification as of 06-May-2022 Bond EUR
Funds in Peer Group as of 06-May-2022 309
MSCI Weighted Average Carbon Intensity (Tons CO2E/$M SALES) as of 06-May-2022 106.83
MSCI Weighted Average Carbon Intensity % Coverage as of 06-May-2022 36.69
All data is from MSCI ESG Fund Ratings as of 06-May-2022, based on holdings as of 31-Dec-2021. 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 31-May-2022 0.00%
MSCI - UN Global Compact Violators as of 31-May-2022 0.00%
MSCI - Nuclear Weapons as of 31-May-2022 0.00%
MSCI - Thermal Coal as of 31-May-2022 0.00%
MSCI - Civilian Firearms as of 31-May-2022 0.00%
MSCI - Oil Sands as of 31-May-2022 0.00%
MSCI - Tobacco as of 31-May-2022 0.00%

Business Involvement Coverage as of 31-May-2022 43.11%
Percentage of Fund not covered as of 31-May-2022 56.89%
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 0.00% and for Oil Sands 0.14%.

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.

Risk Indicator

Risk Indicator

1
2
3
4
5
6
7
Low Risk High Risk
Typically low rewards Typically high rewards

Ratings

Ratings

Morningstar Rating

3 stars
Overall Morningstar Rating for BSF ESG Euro Bond Fund, Class D2, as of 31-May-2022 rated against 1173 EUR Diversified Bond Funds.

Morningstar Analyst Rating

Morningstar Analyst Rating - Gold
Morningstar has awarded the Fund a Gold medal, its highest level of conviction. (Effective 09-Jul-2021)

Holdings

Holdings

as of 31-May-2022
Name Weight (%)
FRANCE (REPUBLIC OF) 0 03/25/2025 1.61
FRANCE (REPUBLIC OF) 0.5 06/25/2044 1.26
ITALY (REPUBLIC OF) 0.5 02/01/2026 1.17
FINLAND (REPUBLIC OF) 1.5 09/15/2032 1.05
GERMANY (FEDERAL REPUBLIC OF) 0 08/15/2031 1.04
Name Weight (%)
GERMANY (FEDERAL REPUBLIC OF) 0 05/15/2036 1.03
EUROPEAN INVESTMENT BANK MTN RegS 0 06/17/2027 0.96
ITALY (REPUBLIC OF) 1.85 07/01/2025 0.93
SPAIN (KINGDOM OF) 0 04/30/2023 0.93
AUSTRIA (REPUBLIC OF) 0.9 02/20/2032 0.87
Holdings subject to change

Exposure Breakdowns

Exposure Breakdowns

as of 31-May-2022

% of Market Value

Type Fund Benchmark Net
as of 31-May-2022

% of Market Value

Type Fund Benchmark Net
Geographic exposure relates principally to the domicile of the issuers of the securities held in the product, added together and then expressed as a percentage of the product’s total holdings. However, in some instances it can reflect the country where the issuer of the securities carries out much of their business.
as of 31-May-2022

% of Market Value

Type Fund Benchmark Net
as of 31-May-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

Investor Class Currency Distribution Frequency NAV NAV Amount Change NAV % Change NAV As Of 52wk High 52wk Low ISIN TIS
Class D2 EUR None 90.77 -0.57 -0.62 28-Jun-2022 108.17 89.55 LU1435395808 -
Class I2 EUR None 91.54 -0.58 -0.63 28-Jun-2022 108.94 90.30 LU1435395980 -
Class A4 EUR Annual 88.90 -0.56 -0.63 28-Jun-2022 106.26 87.71 LU1435395717 -
Class A2 EUR None 88.96 -0.57 -0.64 28-Jun-2022 106.34 87.77 LU1435395634 -

Portfolio Managers

Portfolio Managers

Michael Krautzberger
Head, BlackRock’s Pan-European Fixed Income Team

     

Ronald van Loon
Ronald van Loon

Literature

Literature