Fixed Income

BGF Emerging Markets Bond Fund

  • NAV as of 06-Dec-23 EUR 6.99
    52 WK: 6.30 - 6.99
  • 1 Day NAV Change as of 06-Dec-23 0.04 (0.58%)
  • 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 securities, which 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. The Fund may, via FDIs, 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.

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.

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.
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Distributions

Ex-Date Total Distribution
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Ex-Date Total Distribution

This chart shows the fund's performance as the percentage loss or gain per year over the last 5 years.

  2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Total Return (%) -8.4 10.5 5.2 -2.5 -18.5
Constraint Benchmark 1 (%) -4.3 15.0 5.3 -1.8 -17.8

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

  1y 3y 5y 10y Incept.
Total Return (%) 10.60 -3.57 0.49 - -1.11
Constraint Benchmark 1 (%) 6.42 -4.44 1.00 - 0.01
  YTD 1m 3m 6m 1y 3y 5y 10y Incept.
Total Return (%) 9.99 5.64 5.15 10.69 10.60 -10.35 2.48 - -6.48
Constraint Benchmark 1 (%) 6.07 5.66 1.52 4.18 6.42 -12.73 5.10 - 0.07
  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-23

4.75 -0.60 7.29 -26.81 11.52
Constraint Benchmark 1 (%)

as of 30-Sep-23

11.57 1.29 4.36 -24.28 10.01

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-23 USD 1,114,799,437
Inception Date 22-Nov-17
Fund Launch Date 01-Oct-04
Share Class Currency EUR
Base Currency USD
Asset Class Fixed Income
Constraint Benchmark 1 JP Morgan EMBI Global Diversified Index
SFDR Classification Other
Initial Charge 0.00%
Ongoing Charges Figures 0.03%
ISIN LU1722865000
Annual Management Fee 0.00%
Performance Fee 0.00%
Minimum Initial Investment EUR 10,000,000.00
Minimum Subsequent Investment EUR 1,000.00
Use of Income Distributing
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 BGEX5EH
SEDOL BF0QF41

Portfolio Characteristics

Portfolio Characteristics

Number of Holdings as of 30-Nov-23 286
12 Month Trailing Dividend Distribution Yield as of 30-Nov-23 5.50
Standard Deviation (3y) as of 30-Nov-23 11.63%
3y Beta as of 30-Nov-23 1.049
Yield to Maturity as of 30-Nov-23 8.07
Modified Duration as of 30-Nov-23 6.03
Weighted Average YTM as of 30-Nov-23 8.07%
Effective Duration as of 30-Nov-23 6.13
Weighted Avg Maturity as of 30-Nov-23 9.51
WAL to Worst as of 30-Nov-23 9.51

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-23 BB
MSCI ESG % Coverage as of 25-Oct-23 93.89
MSCI ESG Quality Score (0-10) as of 25-Oct-23 3.90
MSCI ESG Quality Score - Peer Percentile as of 25-Oct-23 16.90
Fund Lipper Global Classification as of 25-Oct-23 Bond Emerging Markets Global HC
Funds in Peer Group as of 25-Oct-23 420
MSCI Weighted Average Carbon Intensity (Tons CO2E/$M SALES) as of 25-Oct-23 1,018.51
MSCI Weighted Average Carbon Intensity % Coverage as of 25-Oct-23 14.53
All data is from MSCI ESG Fund Ratings as of 25-Oct-23, based on holdings as of 31-May-23. 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-23 0.00%
MSCI - UN Global Compact Violators as of 30-Nov-23 3.26%
MSCI - Nuclear Weapons as of 30-Nov-23 0.00%
MSCI - Thermal Coal as of 30-Nov-23 0.02%
MSCI - Civilian Firearms as of 30-Nov-23 0.00%
MSCI - Oil Sands as of 30-Nov-23 0.00%
MSCI - Tobacco as of 30-Nov-23 0.00%
Business Involvement Coverage as of 30-Nov-23 14.27%
Percentage of Fund not covered as of 30-Nov-23 84.90%
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 0.37% and for Oil Sands 0.05%.

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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3
4
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7
Low Risk High Risk
Typically low rewards Typically high rewards

Ratings

Ratings

Morningstar Rating

4 stars
Overall Morningstar Rating for BGF Emerging Markets Bond Fund, Class X5 Hedged, as of 30-Nov-23 rated against 881 Global Emerging Markets Bond - EUR Biased Funds.

Holdings

Holdings

as of 31-Oct-23
Name Weight (%)
BGF EM Corporate Bond Fund X2 USD 4.49
PETROLEOS DE VENEZUELA SA RegS 0 05/17/2035 1.78
COLOMBIA (REPUBLIC OF) 7.5 02/02/2034 1.61
PETROLEOS DE VENEZUELA SA RegS 0 02/17/2022 1.17
DOMINICAN REPUBLIC (GOVERNMENT) RegS 6 02/22/2033 1.10
Name Weight (%)
CHILE (REPUBLIC OF) 3.5 01/31/2034 1.07
MEXICO (UNITED MEXICAN STATES) (GO 4.875 05/19/2033 1.05
PERU (REPUBLIC OF) 3 01/15/2034 1.02
BRAZIL FEDERATIVE REPUBLIC OF (GOV 6 10/20/2033 1.00
ECUADOR REPUBLIC OF (GOVERNMENT) RegS 3.5 07/31/2035 1.00
Holdings subject to change

Exposure Breakdowns

Exposure Breakdowns

as of 31-Oct-23

% of Market Value

Type Fund Benchmark Net
as of 31-Oct-23

% of Market Value

Type Fund Benchmark Net
as of 31-Oct-23

% of Market Value

Type Fund Benchmark Net
as of 31-Oct-23

% of Market Value

Type Fund Benchmark Net
as of 31-Oct-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 NAV NAV Amount Change NAV % Change NAV As Of 52wk High 52wk Low ISIN
Class X5 Hedged EUR 6.99 0.04 0.58 06-Dec-23 6.99 6.30 LU1722865000
Class A8 Hedged CNH 79.99 0.45 0.57 06-Dec-23 80.36 72.73 LU1919856051
Class D2 Hedged EUR 15.74 0.09 0.58 06-Dec-23 15.74 14.09 LU0827877399
Class AI5 Hedged EUR 7.55 0.04 0.53 06-Dec-23 7.55 6.82 LU1960220074
Class I4 USD 8.37 0.05 0.60 06-Dec-23 8.37 7.52 LU1806518293
Class D3 EUR 7.83 0.07 0.90 06-Dec-23 7.83 7.04 LU0827877126
Class A1 EUR 7.56 0.07 0.93 06-Dec-23 7.56 6.78 LU0200683703
Class I2 Hedged GBP 9.77 0.06 0.62 06-Dec-23 9.77 8.65 LU1806518533
Class D3 USD 8.45 0.04 0.48 06-Dec-23 8.45 7.67 LU0827876821
Class A2 Hedged GBP 10.90 0.06 0.55 06-Dec-23 10.90 9.71 LU1057296771
Class I2 Hedged EUR 10.74 0.06 0.56 06-Dec-23 10.74 9.61 LU1057294727
Class D2 EUR 18.69 0.18 0.97 06-Dec-23 18.69 16.22 LU0827877043
Class A3 EUR 7.82 0.08 1.03 06-Dec-23 7.82 7.02 LU0200684008
Class A8 Hedged AUD 6.49 0.04 0.62 06-Dec-23 6.49 5.90 LU0871639893
Class A2 EUR 16.95 0.16 0.95 06-Dec-23 16.95 14.76 LU0200683885
Class I2 EUR 16.95 0.16 0.95 06-Dec-23 16.95 14.70 LU1048586868
Class X2 Hedged EUR 18.14 0.10 0.55 06-Dec-23 18.14 16.15 LU0343170543
Class X2 CAD 30.81 0.15 0.49 06-Dec-23 30.81 26.94 LU2545636172
Class E2 EUR 15.44 0.15 0.98 06-Dec-23 15.44 13.49 LU0200684180
Class I5 Hedged EUR 7.25 0.04 0.55 06-Dec-23 7.25 6.54 LU1323999216
Class C2 USD 14.39 0.08 0.56 06-Dec-23 14.39 12.84 LU0200681673
Class A4 EUR 10.75 0.10 0.94 06-Dec-23 10.75 9.76 LU1072326561
Class E2 USD 16.66 0.09 0.54 06-Dec-23 16.66 14.78 LU0200681830
Class X5 Hedged CHF 7.76 0.04 0.52 06-Dec-23 7.81 7.02 LU1904800973
Class A2 Hedged EUR 14.74 0.08 0.55 06-Dec-23 14.74 13.24 LU0413376566
Class X2 USD 22.72 0.13 0.58 06-Dec-23 22.72 19.88 LU0200682721
Class A8 Hedged ZAR 72.78 0.44 0.61 06-Dec-23 72.78 66.17 LU1109561420
Class A1 USD 8.16 0.04 0.49 06-Dec-23 8.16 7.40 LU0200680436
Class I4 Hedged EUR 7.76 0.04 0.52 06-Dec-23 7.79 7.00 LU2075911060
Class D2 USD 20.17 0.11 0.55 06-Dec-23 20.17 17.75 LU0297941386
Class I4 Hedged GBP 8.09 0.05 0.62 06-Dec-23 8.09 7.28 LU2075910922
Class A3 USD 8.44 0.05 0.60 06-Dec-23 8.44 7.65 LU0200680782
Class I2 Hedged CHF 8.84 0.04 0.45 06-Dec-23 8.84 8.01 LU1618350562
Class E2 Hedged EUR 9.43 0.05 0.53 06-Dec-23 9.43 8.49 LU1062842882
Class C1 USD 8.16 0.04 0.49 06-Dec-23 8.16 7.40 LU0200681327
Class A6 Hedged GBP 6.67 0.03 0.45 06-Dec-23 6.67 6.07 LU1408527916
Class A6 USD 6.82 0.04 0.59 06-Dec-23 6.82 6.20 LU0764617162
Class A6 Hedged HKD 49.64 0.28 0.57 06-Dec-23 49.64 45.18 LU0764619960
Class A2 USD 18.29 0.10 0.55 06-Dec-23 18.29 16.17 LU0200680600
Class X2 EUR 21.05 0.21 1.01 06-Dec-23 21.05 18.18 LU0988581723
Class A8 Hedged NZD 7.23 0.04 0.56 06-Dec-23 7.23 6.57 LU1408528138
Class AI2 Hedged EUR 8.94 0.05 0.56 06-Dec-23 8.94 8.03 LU1960219902
Class A6 Hedged CAD 7.08 0.04 0.57 06-Dec-23 7.08 6.44 LU1408528054
Class A2 CZK 412.06 3.84 0.94 06-Dec-23 412.06 346.29 LU1791181735
Class E5 Hedged EUR 7.06 0.04 0.57 06-Dec-23 7.06 6.38 LU1062842965
Class I2 USD 18.30 0.11 0.60 06-Dec-23 18.30 16.09 LU1180455567

Portfolio Managers

Portfolio Managers

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.

Michel Aubenas
Michel Aubenas
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.

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. The unfavourable, moderate, and favourable scenarios shown are illustrations using the worst, average, and best performance of the product, which may include input from benchmark(s) / proxy, over the last ten years.
Recommended holding period : 3 years
Example Investment EUR 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
7,140 EUR
-28.6%
4,580 EUR
-22.9%

Unfavourable

What you might get back after costs
Average return each year
7,320 EUR
-26.8%
7,810 EUR
-7.9%

Moderate

What you might get back after costs
Average return each year
10,270 EUR
2.7%
10,960 EUR
3.1%

Favourable

What you might get back after costs
Average return each year
12,400 EUR
24.0%
12,590 EUR
8.0%

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



Literature

Literature