Fixed Income

BGF ESG Emerging Markets Local Currency 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.

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 and failed/delayed delivery of securities or payments to the Fund. Currency Risk: The Fund invests in other currencies. Changes in exchange rates will therefore affect the value of the investment. Derivatives are 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.
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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 3 years. It can help you to assess how the fund has been managed in the past and compare it to its benchmark.

  2017 2018 2019 2020 2021
Total Return (%) 7.7 1.7 -9.4
Constraint Benchmark 1 (%) 11.9 4.0 -9.5
  1y 3y 5y 10y Incept.
-20.41 -7.39 - - -4.13
Constraint Benchmark 1 (%) -20.40 -6.19 - - -2.05
  YTD 1m 3m 6m 1y 3y 5y 10y Incept.
-15.34 -4.82 -8.99 -15.34 -20.41 -20.56 - - -15.00
Constraint Benchmark 1 (%) -15.11 -4.63 -9.14 -15.11 -20.40 -17.44 - - -7.66
  From
30-Jun-2017
To
30-Jun-2018
From
30-Jun-2018
To
30-Jun-2019
From
30-Jun-2019
To
30-Jun-2020
From
30-Jun-2020
To
30-Jun-2021
From
30-Jun-2021
To
30-Jun-2022
Total Return (%)

as of 30-Jun-2022

- - -7.76 8.21 -20.41
Constraint Benchmark 1 (%)

as of 30-Jun-2022

- - -3.00 6.92 -20.40

Key Facts

Key Facts

Net Assets of Fund as of 05-Jul-2022 USD 400,363,512
Share Class launch date 22-Aug-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-Government Bond Index Emerging Markets Global Diversified
SFDR Classification Article 8
Initial Charge -
Ongoing Charges Figures 0.59%
Annual Management Fee -
Performance Fee -
Minimum Initial Investment EUR 10,000,000.00
Minimum Subsequent Investment EUR 1,000.00
Use of Income Accumulating
Domicile Luxembourg
Regulatory Structure UCITS
Management Company BlackRock (Luxembourg) S.A.
Morningstar Category Other Bond
Dealing Settlement Trade Date + 3 days
Dealing Frequency Daily, forward pricing basis
Bloomberg Ticker BGEI2EH
ISIN LU1862385918
SEDOL BG0NM26

Portfolio Characteristics

Portfolio Characteristics

Number of Holdings as of 31-May-2022 170
Standard Deviation (3y) as of 30-Jun-2022 12.84%
3y Beta as of 30-Jun-2022 1.083
Yield to Maturity as of 31-May-2022 7.64
Modified Duration as of 31-May-2022 3.22
Weighted Average YTM as of 31-May-2022 7.64
Effective Duration as of 31-May-2022 3.23
Weighted Avg Maturity as of 31-May-2022 5.73
WAL to Worst as of 31-May-2022 5.73

Sustainability Characteristics

Sustainability Characteristics

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. MSCI Ratings are currently unavailable for this fund.

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 stage of the investment process. ESG information may be sourced from both internal and external sources and included in the Aladdin risk system. The Fund manager conducts 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

Holdings

Holdings

as of 31-May-2022
Name Weight (%)
BRAZIL FEDERATIVE REPUBLIC OF (GOV 0 01/01/2024 3.28
CZECH REPUBLIC 4.7 09/12/2022 3.15
BRAZIL FEDERATIVE REPUBLIC OF (GO 10 01/01/2023 2.41
BRAZIL FEDERATIVE REPUBLIC OF (GOV 0 07/01/2023 2.29
SOUTH AFRICA (REPUBLIC OF) 10.5 12/21/2026 2.18
Name Weight (%)
BRAZIL (FEDERATIVE REPUBLIC OF) 0 07/01/2022 1.88
SOUTH AFRICA (REPUBLIC OF) 8 01/31/2030 1.83
BRAZIL FEDERATIVE REPUBLIC OF 10 01/01/2025 1.51
POLAND (REPUBLIC OF) 4 10/25/2023 1.48
BRAZIL FEDERATIVE REPUBLIC OF (GO 10 01/01/2027 1.34
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
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 I2 Hedged EUR - 8.38 -0.13 -1.53 05-Jul-2022 10.69 8.38 LU1862385918 -
Class I2 EUR - 9.27 0.02 0.22 05-Jul-2022 10.14 9.15 LU1864666083 -
Class I2 USD - 9.51 -0.15 -1.55 05-Jul-2022 11.94 9.51 LU1864665945 -
Class A2 Hedged EUR None 7.57 -0.12 -1.56 05-Jul-2022 9.72 7.57 LU1817794545 -
Class D2 Hedged EUR None 7.72 -0.13 -1.66 05-Jul-2022 9.88 7.72 LU1817794628 -
Class A2 USD None 8.30 -0.13 -1.54 05-Jul-2022 10.48 8.30 LU1860487765 -
Class D2 USD None 8.46 -0.13 -1.51 05-Jul-2022 10.63 8.46 LU1817794388 -

Portfolio Managers

Portfolio Managers

Laurent Develay
Laurent Develay
Amer Bisat
Amer Bisat
Laurent Develay
Laurent Develay
Michal Wozniak
Michal Wozniak

Literature

Literature