Fixed Income

BGF Emerging Markets Local Currency 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. Compared to more established economies, the value of investments in developing Emerging Markets may be subject to greater volatility due to differences in generally accepted accounting principles or from economic or political instability. 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 investments may be subject to liquidity constraints, which means that shares may trade less frequently and in small volumes, for instance smaller companies. As a result, changes in the value of investments may be more unpredictable. In certain cases, it may not be possible to sell the security at the last market price quoted or at a value considered to be fairest. The fund may make distributions from capital as well as income or pursue certain investment strategies in order to generate income. Whilst this might allow more income to be distributed, it may also have the effect of reducing capital and the potential for long-term capital growth. 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.

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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This chart shows the fund's performance as the percentage loss or gain per year over the last 6 years.

  2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Total Return (%) 13.9 -12.3 11.8 2.2 -8.2 -9.1
Constraint Benchmark 1 (%) 15.2 -6.2 13.5 2.7 -8.7 -11.7

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

  1y 3y 5y 10y Incept.
12.91 -0.68 1.71 - 0.59
Constraint Benchmark 1 (%) 11.34 -2.25 1.20 - 1.15
  YTD 1m 3m 6m 1y 3y 5y 10y Incept.
8.82 -3.20 3.92 8.79 12.91 -2.03 8.83 - 4.42
Constraint Benchmark 1 (%) 7.92 -2.69 3.38 6.85 11.34 -6.59 6.16 - 8.68
  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

4.92 -5.73 8.85 -18.63 16.15
Constraint Benchmark 1 (%)

as of 30/Jun/2023

8.99 -2.82 6.57 -19.28 11.38

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 USD 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 28/Sep/2023 USD 1,494,714,516
Share Class launch date 11/May/2016
Fund Launch Date 26/Jun/1997
Share Class Currency USD
Fund Base Currency USD
Asset Class Fixed Income
Constraint Benchmark 1 J.P. Morgan GBI-EM Global Diversified Index
SFDR Classification Other
Initial Charge 5.00%
Ongoing Charges Figures 1.28%
ISIN LU1408528211
Annual Management Fee 1.00%
Performance Fee 0.00%
Minimum Initial Investment USD 5,000.00
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 BGELCA6
SEDOL BZBVQ97

Portfolio Characteristics

Portfolio Characteristics

Number of Holdings as of 31/Aug/2023 188
12 Month Trailing Dividend Distribution Yield as of 31/Aug/2023 6.85
Standard Deviation (3y) as of 31/Aug/2023 11.38%
3y Beta as of 31/Aug/2023 1.029
Yield to Maturity as of 31/Aug/2023 7.68
Modified Duration as of 31/Aug/2023 5.82
Weighted Average YTM as of 31/Aug/2023 7.68%
Effective Duration as of 31/Aug/2023 5.85
Weighted Avg Maturity as of 31/Aug/2023 7.51
WAL to Worst as of 31/Aug/2023 7.51

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 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

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 A6, as of 31/Aug/2023 rated against 880 Global Emerging Markets Bond - Local Currency Funds.

Holdings

Holdings

as of 31/Aug/2023
Name Weight (%)
SOUTH AFRICA (REPUBLIC OF) 7 02/28/2031 2.52
BRAZIL FEDERATIVE REPUBLIC OF (GOV 10 01/01/2029 2.13
PERU (REPUBLIC OF) 6.95 08/12/2031 2.01
BRAZIL FEDERATIVE REPUBLIC OF (GO 10 01/01/2027 1.96
BRAZIL FEDERATIVE REPUBLIC OF (GOV 0 01/01/2026 1.86
Name Weight (%)
MEXICO (UNITED MEXICAN STATES) (GO 5.75 03/05/2026 1.68
BRAZIL FEDERATIVE REPUBLIC OF 10 01/01/2025 1.65
MEXICO (UNITED MEXICAN STATES) (GO 7.75 05/29/2031 1.64
MEXICO (UNITED MEXICAN STATES) 7.5 06/03/2027 1.63
INDONESIA (REPUBLIC OF) 6.375 04/15/2032 1.55
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 A6 USD Monthly 6.07 -0.04 -0.65 28/Sep/2023 6.74 5.65 LU1408528211
Class D2 Hedged CHF None 7.46 -0.06 -0.80 28/Sep/2023 8.26 6.78 LU1688375184
Class SR2 Hedged EUR - 8.58 -0.06 -0.69 28/Sep/2023 9.46 7.68 LU2319963380
Class I5 USD Quarterly 7.17 -0.05 -0.69 28/Sep/2023 8.02 6.65 LU1495982867
Class SR3 USD Monthly 7.98 -0.06 -0.75 28/Sep/2023 8.87 7.36 LU2319963620
Class A8 Hedged AUD Monthly 4.79 -0.04 -0.83 28/Sep/2023 5.33 4.50 LU1133072774
Class A2 Hedged SGD None 7.41 -0.06 -0.80 28/Sep/2023 8.17 6.58 LU0358998713
Class D2 USD None 23.79 -0.17 -0.71 28/Sep/2023 26.10 20.70 LU0383940458
Class A2 Hedged EUR None 6.34 -0.05 -0.78 28/Sep/2023 7.00 5.71 LU0359002093
Class I2 CHF - 21.96 -0.20 -0.90 28/Sep/2023 22.91 20.66 LU1781817694
Class I2 GBP - 19.65 -0.23 -1.16 28/Sep/2023 20.42 18.33 LU1741217027
Class I5 EUR Quarterly 6.80 -0.06 -0.87 28/Sep/2023 7.27 6.75 LU0995350831
Class A1 USD Monthly 2.90 -0.02 -0.68 28/Sep/2023 3.22 2.68 LU0278477574
Class D2 CHF None 21.80 -0.21 -0.95 28/Sep/2023 22.76 20.55 LU1065150267
Class SR2 USD - 9.13 -0.07 -0.76 28/Sep/2023 10.02 7.94 LU2319963547
Class D3 Hedged GBP Monthly 4.90 -0.03 -0.61 28/Sep/2023 5.45 4.59 LU0995345831
Class D2 Hedged EUR None 6.61 -0.05 -0.75 28/Sep/2023 7.28 5.92 LU0622213642
Class A2 CHF None 20.14 -0.18 -0.89 28/Sep/2023 21.04 19.07 LU0938162186
Class SR3 Hedged GBP Monthly 7.74 -0.05 -0.64 28/Sep/2023 8.61 7.25 LU2319963463
Class A1 EUR Monthly 2.75 -0.03 -1.08 28/Sep/2023 2.92 2.72 LU0278461065
Class A2 USD None 21.97 -0.16 -0.72 28/Sep/2023 24.13 19.21 LU0278470058
Class A3 HKD Monthly 22.93 -0.15 -0.65 28/Sep/2023 25.42 21.21 LU0388349754
Class A4 USD Annual 11.57 -0.08 -0.69 28/Sep/2023 13.45 10.70 LU0548402170
Class A3 EUR Monthly 2.78 -0.02 -0.71 28/Sep/2023 2.95 2.74 LU0278457469
Class A6 Hedged SGD Monthly 5.35 -0.04 -0.74 28/Sep/2023 5.97 5.07 LU1676225185
Class A2 Hedged SEK None 75.36 -0.56 -0.74 28/Sep/2023 83.27 67.97 LU1715605868
Class A4 EUR Annual 10.96 -0.12 -1.08 28/Sep/2023 12.19 10.86 LU0478974834
Class A2 EUR None 20.82 -0.21 -1.00 28/Sep/2023 21.88 19.49 LU0278457204
Class D3 EUR Monthly 11.49 -0.11 -0.95 28/Sep/2023 12.21 11.34 LU0827884924
Class D5 GBP Quarterly 6.98 -0.08 -1.13 28/Sep/2023 7.54 6.94 LU1694209807
Class A3 USD Monthly 2.93 -0.02 -0.68 28/Sep/2023 3.26 2.70 LU0278470132
Class D2 Hedged GBP None 12.84 -0.09 -0.70 28/Sep/2023 14.11 11.34 LU0827885491
Class D2 EUR None 22.54 -0.23 -1.01 28/Sep/2023 23.67 21.00 LU0329592702
Class D2 Hedged SGD None 7.83 -0.06 -0.76 28/Sep/2023 8.63 6.92 LU0827884767
Class D3 Hedged AUD Monthly 4.61 -0.03 -0.65 28/Sep/2023 5.14 4.34 LU0827884841
Class D4 EUR Annual 10.98 -0.11 -0.99 28/Sep/2023 12.25 10.87 LU0827885145
Class I2 Hedged EUR None 6.85 -0.06 -0.87 28/Sep/2023 7.55 6.13 LU0473186707
Class D2 Hedged PLN None 9.59 -0.07 -0.72 28/Sep/2023 10.50 8.24 LU0827884684
Class I2 USD None 23.96 -0.17 -0.70 28/Sep/2023 26.28 20.82 LU0520955575
Class D3 USD Monthly 12.12 -0.09 -0.74 28/Sep/2023 13.47 11.18 LU0523291242
Class A6 Hedged CAD Monthly 5.83 -0.04 -0.68 28/Sep/2023 6.49 5.49 LU1408528641
Class A6 Hedged GBP Monthly 5.38 -0.04 -0.74 28/Sep/2023 5.98 5.10 LU1408528302
Class A3 Hedged AUD Monthly 4.61 -0.03 -0.65 28/Sep/2023 5.15 4.34 LU0575500318
Class A2 Hedged PLN None 9.08 -0.06 -0.66 28/Sep/2023 9.95 7.83 LU0480535052
Class D4 USD Annual 11.58 -0.09 -0.77 28/Sep/2023 13.51 10.72 LU0827885228
Class A2 CZK None 507.44 -6.10 -1.19 28/Sep/2023 525.80 471.20 LU1791177113
Class A8 Hedged NZD Monthly 6.04 -0.04 -0.66 28/Sep/2023 6.71 5.65 LU1408528724
Class D3 HKD Monthly 94.86 -0.60 -0.63 28/Sep/2023 105.15 87.75 LU0827885061
Class A2 Hedged CHF None 6.11 -0.05 -0.81 28/Sep/2023 6.77 5.58 LU0623004180
Class A6 Hedged HKD Monthly 59.03 -0.43 -0.72 28/Sep/2023 65.68 55.67 LU1408528484

Portfolio Managers

Portfolio Managers

Laurent Develay
Laurent Develay
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.

Laurent Develay
Laurent Develay
Michal Wozniak
Michal Wozniak

Literature

Literature