Fixed Income

BGF Sustainable Emerging Markets Bond Fund

Changes to interest rates, credit risk and/or issuer defaults will have a significant impact on the performance of fixed income securities. Non-investment 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.

Overview

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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

Performance

Performance

Chart

Performance chart data not available for display.
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  1y 3y 5y 10y Incept.
-21.97 -4.38 - - -1.20
-25.87 -6.00 - - -2.43
Benchmark (%)

as of 31-Aug-2022

-21.91 -5.53 - - -1.13
  YTD 6m 1y 3y 5y 10y Incept.
-18.98 -10.69 -21.97 -12.58 - - -4.80
-23.03 -15.16 -25.87 -16.95 - - -9.56
Benchmark (%)

as of 31-Aug-2022

-19.75 -10.67 -21.91 -15.70 - - -4.55
Performance of the Fund is calculated on NAV to NAV basis on the assumption that all dividends and distributions are reinvested, taking into account all charges which would have been payable upon such reinvestment.

Key Facts

Key Facts

Size of Fund (Millions) as of 27-Sep-2022 USD 323.445
Base Currency U.S. Dollar
Fund Inception 09-Jul-2018
Share Class Currency U.S. Dollar
Share Class Inception Date 01-Aug-2018
Additional Currencies British Pound, Euro, Swiss Franc
Asset Class Fixed Income
Morningstar Category Global Emerging Markets Bond
Benchmark J.P. Morgan ESG EMBI Global Diversified Index
Distribution Frequency N/A
ISIN LU1860487849
Bloomberg Ticker BGEMA2U
Management Fee (incl. Distribution Fee, if any) 1.25%
Initial Charge 5.00%

Portfolio Characteristics

Portfolio Characteristics

Yield to Maturity as of 31-Aug-2022 8.11
Modified Duration as of 31-Aug-2022 6.19
Effective Duration as of 31-Aug-2022 6.36yrs
3y Volatility as of 31-Aug-2022 12.68
5Y Annualised Volatility as of - -
Since Share Inception – Annualised Volatility as of 31-Aug-2022 11.46
Since Share Inception - Beta as of 31-Aug-2022 1.02

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 21-Sep-2022 BB
MSCI ESG % Coverage as of 21-Sep-2022 95.99
MSCI ESG Quality Score (0-10) as of 21-Sep-2022 3.67
MSCI ESG Quality Score - Peer Percentile as of 21-Sep-2022 55.42
Fund Lipper Global Classification as of 21-Sep-2022 Bond Emerging Markets Global HC
Funds in Peer Group as of 21-Sep-2022 415
MSCI Weighted Average Carbon Intensity (Tons CO2E/$M SALES) as of 21-Sep-2022 504.45
MSCI Weighted Average Carbon Intensity % Coverage as of 21-Sep-2022 4.39
All data is from MSCI ESG Fund Ratings as of 21-Sep-2022, based on holdings as of 31-May-2022. 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-Aug-2022 0.00%
MSCI - UN Global Compact Violators as of 31-Aug-2022 0.00%
MSCI - Nuclear Weapons as of 31-Aug-2022 0.00%
MSCI - Thermal Coal as of 31-Aug-2022 0.00%
MSCI - Civilian Firearms as of 31-Aug-2022 0.00%
MSCI - Oil Sands as of 31-Aug-2022 0.00%
MSCI - Tobacco as of 31-Aug-2022 0.00%

Business Involvement Coverage as of 31-Aug-2022 4.95%
Percentage of Fund not covered as of 31-Aug-2022 96.61%
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 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.

Holdings

Holdings

as of 31-Aug-2022
Name Weight (%)
CHILE (REPUBLIC OF) 2.55 01/27/2032 1.93
PERU (REPUBLIC OF) 3 01/15/2034 1.48
OMAN SULTANATE OF (GOVERNMENT) RegS 6.5 03/08/2047 1.47
QATAR (STATE OF) RegS 4.817 03/14/2049 1.41
SHARJAH SUKUK PROGRAMME LTD RegS 3.234 10/23/2029 1.35
Name Weight (%)
PANAMA REPUBLIC OF (GOVERNMENT) 3.16 01/23/2030 1.17
BRAZIL FEDERATIVE REPUBLIC OF (GOV 3.875 06/12/2030 1.16
OMAN SULTANATE OF (GOVERNMENT) RegS 6.75 01/17/2048 1.15
ABU DHABI (EMIRATE OF) MTN RegS 2.5 09/30/2029 1.14
PANAMA REPUBLIC OF (GOVERNMENT) 3.875 03/17/2028 1.12

Exposure Breakdowns

Exposure Breakdowns

as of 31-Aug-2022

% of Weight

Type Fund Benchmark Net
as of 31-Aug-2022

% of Weight

Type Fund Benchmark Net
as of 31-Aug-2022

% of Weight

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.
Due to rounding, the total may not be equal to 100%

Ratings

Pricing & Exchange

Pricing & Exchange

Share Class Currency Distribution Frequency NAV NAV $ Change NAV % Change NAV As Of ISIN
A2 USD N/A 9.07 -0.02 -0.22 27-Sep-2022 LU1860487849
A2 Hedged EUR N/A 8.26 -0.02 -0.24 27-Sep-2022 LU1817795278
D2 Hedged GBP - 7.61 -0.02 -0.26 27-Sep-2022 LU2290526248
D2 USD N/A 9.34 -0.03 -0.32 27-Sep-2022 LU1817794974
D6 USD Monthly 7.18 -0.01 -0.14 27-Sep-2022 LU2337650662
D2 Hedged CHF N/A 8.42 -0.02 -0.24 27-Sep-2022 LU1817795435
D2 Hedged EUR N/A 8.46 -0.03 -0.35 27-Sep-2022 LU1817795351
A6 USD Monthly 7.11 -0.02 -0.28 27-Sep-2022 LU2337650316

Portfolio Managers

Portfolio Managers

Amer Bisat
Amer Bisat
Michel Aubenas
Michel Aubenas
Amer Bisat
Amer Bisat
Kirill Veretinskii
Kirill Veretinskii

Documents

Documents