Fixed Income

BGF Sustainable Emerging Markets 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.

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. The Fund seeks to exclude companies engaging in certain activities inconsistent with ESG criteria. Investors should therefore make a personal ethical assessment of the Fund’s ESG screening prior to investing in the Fund. Such ESG screening may adversely affect the value of the Fund’s investments compared to a fund without such screening.

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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Reinvestments

This product does not have any distributions data as of now.

This chart shows the fund's performance as the percentage loss or gain per year over the last 4 years.

  2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Total Return (%) 12.2 6.6 -3.5 -19.9
Constraint Benchmark 1 (%) 15.9 5.8 -2.3 -18.9

Performance is shown after deduction of ongoing charges. Any entry and exit charges are excluded from the calculation.

  1y 3y 5y 10y Incept.
5.51 -6.05 -0.40 - -1.18
Constraint Benchmark 1 (%) 5.62 -5.32 0.72 - 0.33
  YTD 1m 3m 6m 1y 3y 5y 10y Incept.
5.04 5.51 1.41 4.45 5.51 -17.06 -1.99 - -6.20
Constraint Benchmark 1 (%) 5.28 5.73 1.04 3.31 5.62 -15.12 3.66 - 1.77
  From
30-Sep-2018
To
30-Sep-2019
From
30-Sep-2019
To
30-Sep-2020
From
30-Sep-2020
To
30-Sep-2021
From
30-Sep-2021
To
30-Sep-2022
From
30-Sep-2022
To
30-Sep-2023
Total Return (%)

as of 30-Sep-2023

6.95 2.26 4.33 -26.83 8.81
Constraint Benchmark 1 (%)

as of 30-Sep-2023

12.39 2.80 3.12 -25.10 9.06

The figures shown relate to past performance. Past performance is not a reliable indicator of future performance. Markets could develop very differently in the future. It can help you to assess how the fund has been managed in the past

Share Class and Benchmark performance displayed in EUR 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 06-Dec-2023 USD 223,538,263
Share Class launch date 09-Jul-2018
Fund Launch Date 09-Jul-2018
Share Class Currency EUR
Fund Base Currency USD
Asset Class Fixed Income
Constraint Benchmark 1 J.P. Morgan ESG EMBI Global Diversified Index
SFDR Classification Article 8
Initial Charge 5.00%
Ongoing Charges Figures 0.87%
ISIN LU1817795351
Annual Management Fee 0.65%
Performance Fee 0.00%
Minimum Initial Investment EUR 100,000.00
Minimum Subsequent Investment EUR 1,000.00
Use of Income Accumulating
Domicile Luxembourg
Regulatory Structure UCITS
Management Company BlackRock (Luxembourg) S.A.
Morningstar Category Global Emerging Markets Bond - EUR Biased
Dealing Settlement Trade Date + 3 days
Dealing Frequency Daily, forward pricing basis
Bloomberg Ticker BGBD2EH
SEDOL BG0X0R7

Portfolio Characteristics

Portfolio Characteristics

Number of Holdings as of 30-Nov-2023 234
Standard Deviation (3y) as of 30-Nov-2023 11.27%
3y Beta as of 30-Nov-2023 1.019
Yield to Maturity as of 30-Nov-2023 7.74
Modified Duration as of 30-Nov-2023 6.38
Weighted Average YTM as of 30-Nov-2023 7.74
Effective Duration as of 30-Nov-2023 6.47
Weighted Avg Maturity as of 30-Nov-2023 9.66
WAL to Worst as of 30-Nov-2023 9.66

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 25-Oct-2023 BB
MSCI ESG % Coverage as of 25-Oct-2023 95.17
MSCI ESG Quality Score (0-10) as of 25-Oct-2023 4.24
MSCI ESG Quality Score - Peer Percentile as of 25-Oct-2023 46.43
Fund Lipper Global Classification as of 25-Oct-2023 Bond Emerging Markets Global HC
Funds in Peer Group as of 25-Oct-2023 420
MSCI Weighted Average Carbon Intensity (Tons CO2E/$M SALES) as of 25-Oct-2023 396.72
MSCI Weighted Average Carbon Intensity % Coverage as of 25-Oct-2023 5.80
All data is from MSCI ESG Fund Ratings as of 25-Oct-2023, based on holdings as of 30-Jun-2023. 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% (or 50% for bond funds and money market funds) 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.

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-Nov-2023 0.00%
MSCI - UN Global Compact Violators as of 30-Nov-2023 0.00%
MSCI - Nuclear Weapons as of 30-Nov-2023 0.00%
MSCI - Thermal Coal as of 30-Nov-2023 0.00%
MSCI - Civilian Firearms as of 30-Nov-2023 0.00%
MSCI - Oil Sands as of 30-Nov-2023 0.00%
MSCI - Tobacco as of 30-Nov-2023 0.00%

Business Involvement Coverage as of 30-Nov-2023 6.61%
Percentage of Fund not covered as of 30-Nov-2023 91.27%
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 0.00%.

Metrics have been reported based on MSCI data for consistency with MSCI fund rating, this fund is managed using data from Sustainalytics.


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 financially material environmental, social and governance (ESG) data or information into the investment decision process with the objective of enhancing risk-adjusted returns of our clients’ 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 or strategy, but rather describes how ESG data or information is considered as part of the overall investment process.

The Fund manager includes ESG considerations in combination with other information in the research phase of the investment process. This may include relevant third-party insights, as well as internal engagement commentary and input from BlackRock Investment Stewardship on governance issues. The Fund manager conducts regular portfolio reviews with the Risk and Quantitative Analysis group and with the Chief Investment Officers. These reviews include discussion, where appropriate, 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

Ratings

Morningstar Rating

3 stars
Overall Morningstar Rating for BGF Sustainable Emerging Markets Bond Fund, Class D2 Hedged, as of 30-Nov-2023 rated against 881 Global Emerging Markets Bond - EUR Biased Funds.

Morningstar Medalist Rating

Morningstar Medalist Rating - BRONZE
Morningstar has awarded the Fund a Bronze medal. (Effective 31-Oct-2023)

Holdings

Holdings

as of 31-Oct-2023
Name Weight (%)
PERU (REPUBLIC OF) 3 01/15/2034 1.80
MEXICO (UNITED MEXICAN STATES) (GO 2.25 08/12/2036 1.51
POLAND (REPUBLIC OF) 5.75 11/16/2032 1.46
CHILE (REPUBLIC OF) 2.55 07/27/2033 1.44
GACI FIRST INVESTMENT CO MTN RegS 5 10/13/2027 1.43
Name Weight (%)
COLOMBIA (REPUBLIC OF) 7.5 02/02/2034 1.42
PANAMA REPUBLIC OF (GOVERNMENT) 3.875 03/17/2028 1.26
HUNGARY (REPUBLIC OF) RegS 2.125 09/22/2031 1.21
MVM ENERGETIKA ZRT RegS 7.5 06/09/2028 1.14
INDONESIA (REPUBLIC OF) 4.55 01/11/2028 1.04
Holdings subject to change

Exposure Breakdowns

Exposure Breakdowns

as of 31-Oct-2023

% of Market Value

Type Fund Benchmark Net
as of 31-Oct-2023

% of Market Value

Type Fund Benchmark Net
as of 31-Oct-2023

% of Market Value

Type Fund Benchmark Net
as of 31-Oct-2023

% of Market Value

Type Fund Benchmark Net
as of 31-Oct-2023

% 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 NAV NAV Amount Change NAV % Change NAV As Of 52wk High 52wk Low ISIN
Class D2 Hedged EUR 9.51 0.06 0.63 06-Dec-2023 9.51 8.75 LU1817795351
Class D2 Hedged GBP 8.73 0.06 0.69 06-Dec-2023 8.73 8.01 LU2290526248
Class I2 EUR 10.42 0.10 0.97 06-Dec-2023 10.42 9.47 LU1864665515
Class A2 Hedged EUR 9.21 0.05 0.55 06-Dec-2023 9.21 8.48 LU1817795278
Class D2 USD 10.90 0.07 0.65 06-Dec-2023 10.90 9.95 LU1817794974
Class A2 USD 10.51 0.07 0.67 06-Dec-2023 10.51 9.63 LU1860487849
Class I2 Hedged EUR 9.86 0.06 0.61 06-Dec-2023 9.86 9.07 LU1864665606
Class A6 USD 7.65 0.04 0.53 06-Dec-2023 7.77 7.10 LU2337650316
Class I2 USD 11.25 0.07 0.63 06-Dec-2023 11.25 10.26 LU1864665432
Class D6 USD 7.78 0.04 0.52 06-Dec-2023 7.85 7.21 LU2337650662

Portfolio Managers

Portfolio Managers

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.

Michel Aubenas
Michel Aubenas
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.

Kirill Veretinskii
Kirill Veretinskii

Literature

Literature