Fixed Income

BGF Emerging Markets Local Currency Bond Fund

  • NAV as of 30-May-23 HKD 98.88
    52 WK: 87.75 - 102.07
  • 1 Day NAV Change as of 30-May-23 0.32 (0.32%)
  • Morningstar Rating

Overview

Investment Approach


The Fund aims to maximise the return on your investment through a combination of capital growth and income on the Fund’s assets.

The Fund invests at least 70% of its total assets in fixed income (FI) securities denominated in local currencies of developing market countries and may include investments with a relatively low credit rating or which are unrated. These include bonds and money market instruments (i.e. debt securities with short term maturities) and may be issued by governments and government agencies of, and companies and supranationals (e.g. the Asian Development Bank) domiciled in, or the main business of which is in, emerging markets.

The investment adviser (IA) may use financial derivative instruments (FDIs) (i.e. investments the prices of which are based on one or more underlying assets) to help achieve the Fund’s investment objective and to reduce risk within the Fund’s portfolio. This may generate market leverage (i.e. where the Fund gains market exposure in excess of the value of its assets).

Important Information: 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 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

Chart

Performance chart data not available for display.
View full chart
Share Class and Benchmark performance displayed in HKD. Source: BlackRock. Performance is shown on a Net Asset Value (NAV) basis, with gross income reinvested. Source: BlackRock. Past performance is not a guide to future performance and should not be the sole factor of consideration when selecting a product.

Distributions

Record Date Ex-Date Payable Date
View full table
Record Date Ex-Date Payable Date Total Distribution

This chart shows the fund's performance as the percentage loss or gain per year over the last 10 years.

  2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Total Return (%) -6.1 -6.4 -13.8 13.6 15.4 -11.6 11.7 2.2 -7.2 -8.6
Constraint Benchmark 1 (%) -9.2 -5.7 -15.0 10.0 16.2 -6.1 12.9 2.2 -8.2 -11.6
  1y 3y 5y 10y Incept.
Total Return (%) 10.99 2.45 -1.91 -1.47 -0.86
Constraint Benchmark 1 (%) 6.61 0.29 -1.61 -1.66 -0.93
  YTD 1m 3m 6m 1y 3y 5y 10y Incept.
Total Return (%) 7.28 1.19 2.07 15.47 10.99 7.52 -9.18 -13.76 -8.69
Constraint Benchmark 1 (%) 6.68 0.86 1.85 16.06 6.61 0.88 -7.81 -15.40 -9.43
  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		 From
31-Mar-2022
To
31-Mar-2023
Total Return (%)

as of 31-Mar-23

-12.63 -11.33 16.56 -7.33 3.71
Constraint Benchmark 1 (%)

as of 31-Mar-23

-7.56 -7.70 13.37 -7.86 -0.48

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 HKD 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 30-May-23 USD 1,649,047,073
Inception Date 04-Oct-12
Fund Launch Date 26-Jun-97
Share Class Currency HKD
Base Currency USD
Asset Class Fixed Income
Constraint Benchmark 1 JP Morgan GBI-EM Global Diversified Index in HKD
SFDR Classification Other
Initial Charge 5.00%
Ongoing Charges Figures 0.77%
Annual Management Fee 0.50%
Performance Fee 0.00%
Minimum Initial Investment HKD 100,000.00
Minimum Subsequent Investment -
Distribution Frequency Monthly
Use of Income Distributing
Domicile Luxembourg
Regulatory Structure UCITS
Management Company BlackRock (Luxembourg) S.A.
Morningstar Category Global Emerging Markets Bond - Local Currency
Dealing Settlement Trade Date + 3 days
Dealing Frequency Daily, forward pricing basis
Bloomberg Ticker BGLED3H
ISIN LU0827885061
SEDOL B8FPQD0

Portfolio Characteristics

Portfolio Characteristics

Number of Holdings as of 28-Apr-23 180
12m Trailing Yield as of 30-Apr-23 5.47
Standard Deviation (3y) as of 30-Apr-23 11.42%
3y Beta as of 30-Apr-23 1.037
Yield to Maturity as of 28-Apr-23 8.34
Modified Duration as of 28-Apr-23 5.25
Weighted Average YTM as of 28-Apr-23 8.34%
Effective Duration as of 28-Apr-23 5.29
Weighted Avg Maturity as of 28-Apr-23 7.50
WAL to Worst as of 28-Apr-23 7.50

Sustainability Characteristics

Sustainability Characteristics

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. 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

Ratings

Morningstar Rating

3 stars
Overall Morningstar Rating for BGF Emerging Markets Local Currency Bond Fund, Class D3, as of 28-Feb-19 rated against 654 Global Emerging Markets Bond - Local Currency Funds.

Holdings

Holdings

as of 28-Apr-23
Name Weight (%)
BRAZIL FEDERATIVE REPUBLIC OF (GOV 10 01/01/2029 2.66
SOUTH AFRICA (REPUBLIC OF) 7 02/28/2031 2.38
BRAZIL FEDERATIVE REPUBLIC OF (GO 10 01/01/2027 2.24
BRAZIL FEDERATIVE REPUBLIC OF (GOV 0 01/01/2026 2.08
SOUTH AFRICA (REPUBLIC OF) 8 01/31/2030 1.77
Name Weight (%)
COLOMBIA (REPUBLIC OF) 7 03/26/2031 1.66
BRAZIL FEDERATIVE REPUBLIC OF (GOV 10 01/01/2031 1.65
BRAZIL FEDERATIVE REPUBLIC OF 10 01/01/2025 1.58
MEXICO (UNITED MEXICAN STATES) (GO 7.75 05/29/2031 1.53
MEXICO (UNITED MEXICAN STATES) 7.5 06/03/2027 1.52
Holdings subject to change

Exposure Breakdowns

Exposure Breakdowns

as of 28-Apr-23

% of Market Value

Type Fund Benchmark Net
as of 28-Apr-23

% of Market Value

Type Fund Benchmark Net
as of 28-Apr-23

% of Market Value

Type Fund Benchmark Net
as of 28-Apr-23

% of Market Value

Type Fund Benchmark Net
as of 28-Apr-23

% 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 Distribution Frequency NAV NAV Amount Change NAV % Change NAV As Of 52wk High 52wk Low ISIN TIS
Class D3 HKD Monthly 98.88 0.32 0.32 30-May-23 102.07 87.75 LU0827885061 -
Class D3 Hedged GBP Monthly 5.12 0.02 0.39 30-May-23 5.31 4.59 LU0995345831 -
Class X2 GBP None 5.62 -0.02 -0.35 30-May-23 5.78 5.06 LU1688375267 -
Class X2 AUD None 10.72 0.04 0.37 30-May-23 10.77 8.88 LU1554267051 -
Class A2 CHF None 20.22 0.04 0.20 30-May-23 20.78 19.07 LU0938162186 -
Class C2 USD None 18.25 0.06 0.33 30-May-23 18.79 15.78 LU0278476923 -
Class X2 Hedged GBP None 9.28 0.04 0.43 30-May-23 9.55 8.00 LU1505939139 -
Class AI5 EUR Quarterly 8.43 0.02 0.24 30-May-23 8.75 8.05 LU1960220660 -
Class D2 Hedged CHF None 7.70 0.03 0.39 30-May-23 7.95 6.78 LU1688375184 -
Class D2 CHF None 21.86 0.05 0.23 30-May-23 22.43 20.55 LU1065150267 -
Class A2 Hedged SGD None 7.59 0.02 0.26 30-May-23 7.82 6.58 LU0358998713 -
Class I3 Hedged GBP Monthly 5.10 0.02 0.39 30-May-23 5.28 4.57 LU0995336418 -
Class A2 Hedged EUR None 6.51 0.02 0.31 30-May-23 6.71 5.71 LU0359002093 -
Class A1 USD Monthly 3.02 0.01 0.33 30-May-23 3.13 2.68 LU0278477574 -
Class S3 Hedged GBP Monthly 7.75 0.02 0.26 30-May-23 8.04 6.95 LU1911699996 -
Class I5 USD Quarterly 7.55 0.02 0.27 30-May-23 7.78 6.65 LU1495982867 -
Class I5 EUR Quarterly 7.04 0.02 0.28 30-May-23 7.31 6.71 LU0995350831 -
Class SR2 Hedged EUR - 8.79 0.03 0.34 30-May-23 9.06 7.68 LU2319963380 -
Class I2 EUR None 22.69 0.06 0.27 30-May-23 22.92 20.70 LU1559746307 -
Class D2 USD None 24.19 0.09 0.37 30-May-23 24.88 20.70 LU0383940458 -
Class A8 Hedged AUD Monthly 5.00 0.02 0.40 30-May-23 5.18 4.50 LU1133072774 -
Class SR3 USD Monthly 8.31 0.03 0.36 30-May-23 8.57 7.36 LU2319963620 -
Class SR2 USD - 9.28 0.03 0.32 30-May-23 9.55 7.94 LU2319963547 -
Class A4 EUR Annual 11.62 0.03 0.26 30-May-23 12.22 10.86 LU0478974834 -
Class D2 Hedged EUR None 6.77 0.02 0.30 30-May-23 6.98 5.92 LU0622213642 -
Class A3 HKD Monthly 23.90 0.08 0.34 30-May-23 24.68 21.21 LU0388349754 -
Class A3 EUR Monthly 2.84 0.00 0.00 30-May-23 2.95 2.74 LU0278457469 -
Class SR3 Hedged GBP Monthly 8.08 0.02 0.25 30-May-23 8.39 7.25 LU2319963463 -
Class I2 CHF - 22.01 0.05 0.23 30-May-23 22.57 20.66 LU1781817694 -
Class D5 GBP Quarterly 7.20 -0.03 -0.41 30-May-23 7.54 6.84 LU1694209807 -
Class A1 EUR Monthly 2.81 0.00 0.00 30-May-23 2.93 2.72 LU0278461065 -
Class E5 Hedged EUR Quarterly 4.69 0.02 0.43 30-May-23 4.88 4.22 LU1062843260 -
Class A3 USD Monthly 3.05 0.01 0.33 30-May-23 3.15 2.70 LU0278470132 -
Class A6 Hedged SGD Monthly 5.61 0.02 0.36 30-May-23 5.83 5.07 LU1676225185 -
Class I2 GBP - 19.59 -0.06 -0.31 30-May-23 20.17 17.73 LU1741217027 -
Class A2 USD None 22.37 0.07 0.31 30-May-23 23.03 19.21 LU0278470058 -
Class D3 EUR Monthly 11.76 0.03 0.26 30-May-23 12.22 11.33 LU0827884924 -
Class A2 Hedged SEK None 77.57 0.26 0.34 30-May-23 79.97 67.97 LU1715605868 -
Class A2 EUR None 20.85 0.06 0.29 30-May-23 21.07 19.14 LU0278457204 -
Class A6 USD Monthly 6.32 0.02 0.32 30-May-23 6.53 5.65 LU1408528211 -
Class A4 USD Annual 12.47 0.04 0.32 30-May-23 12.83 10.70 LU0548402170 -
Class C1 USD Monthly 3.02 0.01 0.33 30-May-23 3.13 2.68 LU0278478119 -
Class D3 USD Monthly 12.62 0.04 0.32 30-May-23 13.02 11.18 LU0523291242 -
Class C2 EUR None 17.00 0.04 0.24 30-May-23 17.19 15.79 LU0278457972 -
Class D3 Hedged AUD Monthly 4.83 0.01 0.21 30-May-23 5.02 4.34 LU0827884841 -
Class D4 EUR Annual 11.67 0.03 0.26 30-May-23 12.29 10.87 LU0827885145 -
Class I2 USD None 24.35 0.08 0.33 30-May-23 25.05 20.82 LU0520955575 -
Class I2 Hedged EUR None 7.02 0.02 0.29 30-May-23 7.23 6.13 LU0473186707 -
Class D2 EUR None 22.54 0.06 0.27 30-May-23 22.77 20.59 LU0329592702 -
Class D2 Hedged SGD None 8.01 0.03 0.38 30-May-23 8.26 6.92 LU0827884767 -
Class D2 Hedged GBP None 13.09 0.04 0.31 30-May-23 13.49 11.34 LU0827885491 -
Class A2 CZK None 494.63 2.99 0.61 30-May-23 512.09 471.20 LU1791177113 -
Class E2 EUR None 19.22 0.06 0.31 30-May-23 19.42 17.72 LU0278459671 -
Class E2 Hedged EUR None 6.10 0.02 0.33 30-May-23 6.29 5.36 LU0474536231 -
Class A8 Hedged NZD Monthly 6.29 0.03 0.48 30-May-23 6.51 5.65 LU1408528724 -
Class AI2 EUR - 10.08 0.03 0.30 30-May-23 10.19 9.25 LU1960220587 -
Class A2 Hedged PLN None 9.22 0.04 0.44 30-May-23 9.48 7.83 LU0480535052 -
Class A6 Hedged HKD Monthly 61.68 0.20 0.33 30-May-23 64.28 55.67 LU1408528484 -
Class A6 Hedged GBP Monthly 5.62 0.02 0.36 30-May-23 5.85 5.10 LU1408528302 -
Class E2 USD None 20.62 0.07 0.34 30-May-23 21.23 17.76 LU0374975414 -
Class A2 Hedged CHF None 6.32 0.02 0.32 30-May-23 6.53 5.58 LU0623004180 -
Class A3 Hedged AUD Monthly 4.83 0.01 0.21 30-May-23 5.02 4.34 LU0575500318 -
Class X2 EUR None 6.51 0.02 0.31 30-May-23 6.57 5.91 LU0531082021 -
Class X5 Hedged GBP Quarterly 7.47 0.03 0.40 30-May-23 7.74 6.65 LU1954752702 -
Class X2 USD None 6.99 0.03 0.43 30-May-23 7.18 5.96 LU0344905624 -
Class A6 Hedged CAD Monthly 6.10 0.02 0.33 30-May-23 6.33 5.49 LU1408528641 -
Class D4 USD Annual 12.52 0.04 0.32 30-May-23 12.88 10.72 LU0827885228 -
Class D2 Hedged PLN None 9.72 0.03 0.31 30-May-23 10.00 8.24 LU0827884684 -

Portfolio Managers

Portfolio Managers

Laurent Develay
Laurent Develay
Amer Bisat
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.

Read More

Amer Bisat, PhD., Managing Director, is Head of Emerging Markets Fixed Income and a member of the Fundamental-GFI Executive Committee. In this role, he oversees the team managing the firm's EM portfolios across hard currency, local and corporate debt instruments. Mr. Bisat's service with the firm dates back to 2013. Prior to BlackRock, he was a partner in two macro hedge funds (Traxis and Rubicon), and held portfolio management responsibilities at Morgan Stanley and UBS. Between 1991 and 1998, he was a senior economist at the International Monetary Fund where he helped negotiate high profile programs with Russia, Ukraine, and Egypt.

 

Mr. Bisat taught graduate level economics courses at Columbia University, co-authored a book on globalization, and academic and policy papers on growth and financial sector development. He is a trustee of a number of cultural and art institutions, sits on the Advisory Council of the Carnegie Middle East Center, and is a member of the Council on Foreign Relations.

 

Mr. Bisat earned a BA in economics from the American University of Beirut and a PhD. in economics and finance from Columbia University.

Laurent Develay
Laurent Develay
Michal Wozniak
Michal Wozniak

PRIIPs Performance Scenarios

PRIIPs Performance Scenarios

The EU Packaged Retail and Insurance-Based Products Regulation (PRIIPs) prescribes the calculation methodology, and publication of the outcomes, of four hypothetical performance scenarios regarding how the product may perform under certain conditions and for such to be published on a monthly basis. The figures shown include all the costs of the product itself, but may not include all the costs that you pay to your advisor or distributor. The figures do not take into account your personal tax situation, which may also affect how much you get back. What you will get from this product depends on future market performance. Market developments in the future are uncertain and cannot be accurately predicted.
Recommended holding period : 3 years
Example Investment HKD 10,000
Scenario
If you exit after 1 year
If you exit after 3 years

Minimum

There is no minimum guaranteed return. You could lose some or all of your investment.

Stress

What you might get back after costs
Average return each year
64,380 HKD
-35.6%
50,140 HKD
-20.6%

Unfavourable

What you might get back after costs
Average return each year
76,450 HKD
-23.6%
77,930 HKD
-8.0%

Moderate

What you might get back after costs
Average return each year
93,840 HKD
-6.2%
95,130 HKD
-1.7%

Favourable

What you might get back after costs
Average return each year
113,520 HKD
13.5%
116,400 HKD
5.2%

The stress scenario shows what you might get back in extreme market circumstances.



Literature

Literature