Fixed Income

BGF Global Corporate Bond Fund

Overview

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.

The fund invests a large portion of assets which are denominated in other currencies; hence changes in the relevant exchange rate will affect the value of the investment. The fund invests in fixed interest securities issued by companies which, compared to bonds issued or guaranteed by governments, are exposed to greater risk of default in the repayment of the capital provided to the company or interest payments due to the fund. The fund invests in fixed interest securities such as corporate or government bonds which pay a fixed or variable rate of interest (also known as the ‘coupon’) and behave similarly to a loan. These securities are therefore exposed to changes in interest rates which will affect the value of any securities held. The fund(s) may invest in structured credit products such as asset backed securities (‘ABS’) which pool together mortgages and other debts into single or multiple series credit products which are then passed on to investors, normally in return for interest payments based on the cash flows from the underlying assets. These securities have similar characteristics to corporate bonds but carry greater risk as the details of the underlying loans is unknown, although loans with similar terms are typically packaged together. The stability of returns from ABS are not only dependent on changes in interest-rates but also changes in the repayments of the underlying loans as a result of changes in economic conditions or the circumstances of the holder of the loan. These securities can therefore be more sensitive to economic events, may be subject to severe price movements and can be more difficult and/or more expensive to sell in difficult markets.

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 7 years.

  2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Total Return (%) 2.6 3.4 -5.4 9.3 6.2 -2.6 -16.6
Constraint Benchmark 1 (%) 6.2 5.7 -1.0 12.5 8.3 -0.8 -14.1

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

  1y 3y 5y 10y Incept.
-1.02 -5.31 -1.16 - -0.83
Constraint Benchmark 1 (%) 1.82 -3.27 1.38 - 1.88
  YTD 1m 3m 6m 1y 3y 5y 10y Incept.
1.86 -0.69 -0.55 1.47 -1.02 -15.09 -5.68 - -6.95
Constraint Benchmark 1 (%) 3.39 -0.39 0.38 2.38 1.82 -9.48 7.07 - 17.44
  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
From
30-Jun-2022
To
30-Jun-2023
Total Return (%)

as of 30/Jun/2023

5.80 3.78 2.86 -15.27 -0.77
Constraint Benchmark 1 (%)

as of 30/Jun/2023

9.60 7.15 3.71 -12.88 1.78

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 SEK 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 29/Sep/2023 USD 858,978,082
Share Class launch date 14/Jan/2015
Fund Launch Date 19/Oct/2007
Share Class Currency SEK
Fund Base Currency USD
Asset Class Fixed Income
Constraint Benchmark 1 Bloomberg Global Aggregate Corporate Bond USD Hedged Index
SFDR Classification Other
Initial Charge 5.00%
Ongoing Charges Figures 1.12%
ISIN LU1162516634
Annual Management Fee 0.90%
Performance Fee 0.00%
Minimum Initial Investment SEK 5,000.00
Minimum Subsequent Investment SEK 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 BRGCA2S
SEDOL BV54928

Portfolio Characteristics

Portfolio Characteristics

Number of Holdings as of 31/Aug/2023 456
Standard Deviation (3y) as of 31/Aug/2023 7.08%
3y Beta as of 31/Aug/2023 1.015
Yield to Maturity as of 31/Aug/2023 5.42
Modified Duration as of 31/Aug/2023 6.20
Weighted Average YTM as of 31/Aug/2023 5.86%
Effective Duration as of 31/Aug/2023 6.18
Weighted Avg Maturity as of 31/Aug/2023 8.25
WAL to Worst as of 31/Aug/2023 8.25

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/2023 A
MSCI ESG % Coverage as of 21/Sep/2023 95.39
MSCI ESG Quality Score (0-10) as of 21/Sep/2023 6.77
MSCI ESG Quality Score - Peer Percentile as of 21/Sep/2023 29.52
Fund Lipper Global Classification as of 21/Sep/2023 Bond Global Corporates USD
Funds in Peer Group as of 21/Sep/2023 105
MSCI Weighted Average Carbon Intensity (Tons CO2E/$M SALES) as of 21/Sep/2023 259.12
MSCI Weighted Average Carbon Intensity % Coverage as of 21/Sep/2023 89.58
All data is from MSCI ESG Fund Ratings as of 21/Sep/2023, based on holdings as of 30/Apr/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 31/Aug/2023 0.71%
MSCI - UN Global Compact Violators as of 31/Aug/2023 2.86%
MSCI - Nuclear Weapons as of 31/Aug/2023 0.71%
MSCI - Thermal Coal as of 31/Aug/2023 0.00%
MSCI - Civilian Firearms as of 31/Aug/2023 0.00%
MSCI - Oil Sands as of 31/Aug/2023 0.00%
MSCI - Tobacco as of 31/Aug/2023 1.30%

Business Involvement Coverage as of 31/Aug/2023 89.15%
Percentage of Fund not covered as of 31/Aug/2023 11.32%
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 1.02% and for Oil Sands 1.74%.

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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Typically low rewards Typically high rewards

Ratings

Holdings

Holdings

as of 31/Aug/2023
Name Weight (%)
UK CONV GILT 1.5 07/31/2053 1.13
T-MOBILE USA INC 2.875 02/15/2031 0.86
TOTALENERGIES SE MTN RegS 1.75 12/31/2079 0.83
ABN AMRO BANK NV MTN RegS 5.5 09/21/2033 0.72
MORGAN STANLEY MTN 5.148 01/25/2034 0.71
Name Weight (%)
SOUTHERN COMPANY (THE) 1.875 09/15/2081 0.69
BANQUE FEDERATIVE DU CREDIT MUTUEL MTN RegS 4.125 03/13/2029 0.69
UBS AG RegS 5.125 05/15/2024 0.69
SES SA RegS 2.875 12/31/2079 0.68
UBS GROUP AG 144A 9.016 11/15/2033 0.68
Holdings subject to change

Exposure Breakdowns

Exposure Breakdowns

as of 31/Aug/2023

% of Market Value

Type Fund Benchmark Net
as of 31/Aug/2023

% of Market Value

Type Fund Benchmark Net
as of 31/Aug/2023

% of Market Value

Type Fund Benchmark Net
as of 31/Aug/2023

% of Market Value

Type Fund Benchmark Net
as of 31/Aug/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 Distribution Frequency NAV NAV Amount Change NAV % Change NAV As Of 52wk High 52wk Low ISIN
Class A2 Hedged SEK None 91.33 0.59 0.65 29/Sep/2023 95.64 86.71 LU1162516634
Class D2 Hedged GBP None 9.41 0.06 0.64 29/Sep/2023 9.73 8.78 LU1222731728
Class A5 USD Quarterly 9.67 0.06 0.62 29/Sep/2023 10.22 9.23 LU0825403933
Class I2 Hedged EUR None 9.21 0.06 0.66 29/Sep/2023 9.61 8.70 LU1625162489
Class A3 Hedged NZD Monthly 10.39 0.04 0.39 29/Sep/2023 10.97 9.98 LU0803752475
Class A6 Hedged SGD Monthly 8.06 0.03 0.37 29/Sep/2023 8.60 7.82 LU1435395121
Class D5 Hedged GBP Quarterly 8.73 0.06 0.69 29/Sep/2023 9.28 8.43 LU1814255474
Class A6 USD Monthly 9.30 0.03 0.32 29/Sep/2023 9.81 8.90 LU0788109634
Class I2 USD None 11.30 0.08 0.71 29/Sep/2023 11.61 10.40 LU1181254019
Class A8 Hedged CNH Monthly 82.94 0.46 0.56 29/Sep/2023 88.63 81.33 LU1220227653
Class A6 Hedged HKD Monthly 67.82 0.22 0.33 29/Sep/2023 72.32 65.74 LU0788109550
Class D2 USD None 14.64 0.10 0.69 29/Sep/2023 15.06 13.50 LU0326960662
Class A3G USD Monthly 9.71 0.02 0.21 29/Sep/2023 10.07 9.69 LU2620702048
Class A2 USD None 13.69 0.09 0.66 29/Sep/2023 14.12 12.68 LU0297942194
Class A8 Hedged NZD Monthly 8.06 0.03 0.37 29/Sep/2023 8.50 7.75 LU1149717313
Class A3 Hedged CAD Monthly 9.47 0.03 0.32 29/Sep/2023 10.03 9.10 LU0816460157
Class X4 Hedged GBP Annual 7.90 0.06 0.77 29/Sep/2023 8.53 7.68 LU0414062165
Class D2 Hedged EUR None 12.12 0.08 0.66 29/Sep/2023 12.65 11.46 LU0326951752
Class A3 Hedged AUD Monthly 10.09 0.04 0.40 29/Sep/2023 10.74 9.79 LU0816460074
Class A2 Hedged EUR None 11.35 0.08 0.71 29/Sep/2023 11.88 10.78 LU0297942434
Class A3 Hedged GBP Monthly 8.89 0.04 0.45 29/Sep/2023 9.42 8.58 LU0816460231
Class I4 Hedged GBP Annual 8.52 0.06 0.71 29/Sep/2023 9.12 8.22 LU1403442228
Class A8 Hedged AUD Monthly 9.13 0.04 0.44 29/Sep/2023 9.65 8.79 LU0871639976
Class A4 Hedged EUR Annual 7.35 0.05 0.68 29/Sep/2023 7.93 7.19 LU0303846876

Portfolio Managers

Portfolio Managers

Michael Krautzberger
Head, BlackRock’s Pan-European Fixed Income Team

     

Daniel Chen
Daniel Chen
Tom Mondelaers
Managing Director

Tom Mondelaers, Managing Director, is a member of the Fundamental Euro Fixed Income team, where he is the lead portfolio manager for the investment grade credit portfolios.

Max Huefner
Max Huefner

Literature

Literature