Fixed Income

BGF US Government Mortgage Fund

  • NAV as of 24-Jun-22 USD 8.10
    52 WK: 7.96 - 9.41
  • 1 Day NAV Change as of 24-Jun-22 0.05 (0.62%)
  • Morningstar Rating

Overview

Investment Approach

The Fund seeks a high level of income. The Fund invests at least 80% of its total assets in fixed income securities issued or guaranteed by the United States Government, its agencies or United States government sponsored enterprises which have a positive social and/or environmental impact, including Government National Mortgage Association (GNMA), mortgagebacked certificates and other United States Government securities representing ownership interests in mortgage pools, such as mortgage-backed securities (MBS) issued by Fannie Mae and Freddie Mac which have social and/or environmental impact characteristics that the Investment Adviser (IA) has at its discretion deemed to be impactful, including (without limitation) rural housing, manufactured housing, housing pools issued by State Housing Finance Authorities and bespoke impact MBS pools. MBS are financial securities which are backed cash flows from by underlying assets such as commercial and residential mortgages. Investment decisions for the Fund will be based on agency and program specific research to identify and select the fixed income securities described above that, in the opinion of the IA, have the potential to produce attractive income returns whilst having a positive social and/or environmental impact. The IA will apply the BlackRock EMEA Baseline Screens whereby the IA will seek to limit and/or exclude direct investment (as applicable) in issuers which, in the opinion of the IA, have exposure to, or ties with, certain sectors. For further details please refer to the BlackRock website at https://www.blackrock.com/corporate/literature/publication/blackrockbaseline- screens-in-europe-middleeast-and-africa.pdf

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.

Credit risk, changes to interest rates and/or issuer defaults will have a significant impact on the performance of fixed income securities. Potential or actual credit rating downgrades may increase the level of risk. Asset backed securities and mortgage backed securities are subject to the same risks described for fixed income securities. These instruments may be subject to 'Liquidity Risk', have high levels of borrowing and may not fully reflect the value of underlying assets. This Share Class may pay dividends or take charges from capital. While this may allow more income to be distributed, it may reduce the value of your holdings and impact the potential for long term capital growth. 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.

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

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Performance

Performance

Chart

Performance chart data not available for display.
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Source: For UK-domiciled funds (such as the BlackRock Retail Authorised Unit Trusts and BlackRock Collective Investment Funds 'BCIF'), performance is shown on a bid to bid price basis, with net income reinvested, in the currency indicated on the chart. Performance is shown net of fees. For Luxembourg-domiciled funds (such as BlackRock Global Funds 'BGF' and BlackRock Strategic Funds 'BSF'), performance is shown on a net asset value basis, with gross income reinvested, in the currency indicated in the chart. Performance is shown net of fees. Past performance is not a guide to future performance.

Distributions

Record Date Ex-Date Payable Date
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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 5 years. It can help you to assess how the fund has been managed in the past and compare it to its benchmark.

  2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Total Return (%) 2.1 -0.3 7.0 5.7 -1.3
Constraint Benchmark 1 (%) 2.5 1.0 6.7 4.0 -1.2
  From
31-Mar-2017
To
31-Mar-2018		 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
Total Return (%)

as of 31-Mar-22

0.25 3.83 7.63 1.54 -5.84
Constraint Benchmark 1 (%)

as of 31-Mar-22

0.77 4.48 7.83 -0.49 -5.00
  1y 3y 5y 10y Incept.
Total Return (%) -8.62 -0.15 0.62 - 0.54
Constraint Benchmark 1 (%) -7.66 -0.62 0.66 - 0.62
  YTD 1m 3m 6m 1y 3y 5y 10y Incept.
Total Return (%) -7.83 0.87 -4.94 -8.02 -8.62 -0.46 3.14 - 3.19
Constraint Benchmark 1 (%) -7.29 1.11 -4.98 -7.38 -7.66 -1.86 3.34 - 3.65

The figures shown relate to past performance. Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy.

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 24-Jun-22 USD 109,244,353
Share Class launch date 27-Jul-16
Fund Launch Date 02-Aug-85
Share Class Currency USD
Fund Base Currency USD
Asset Class Fixed Income
Constraint Benchmark 1 Bloomberg US MBS Index
SFDR Classification Article 9
Initial Charge 0.00%
Ongoing Charges Figures 0.46%
Annual Management Fee 0.40%
Performance Fee 0.00%
Minimum Initial Investment USD 10,000,000.00
Minimum Subsequent Investment -
Distribution Frequency Monthly
Use of Income Distributing
Domicile Luxembourg
Regulatory Structure UCITS
Management Company BlackRock (Luxembourg) S.A.
Morningstar Category USD Government Bond
Dealing Settlement Trade Date + 3 days
Dealing Frequency Daily, forward pricing basis
Bloomberg Ticker BGUGI3U
ISIN LU1456639035
SEDOL BD82K75

Portfolio Characteristics

Portfolio Characteristics

Number of Holdings as of 31-May-22 309
12m Trailing Yield as of 31-May-22 3.46
Standard Deviation (3y) as of 31-May-22 3.39%
3y Beta as of 31-May-22 0.998
Yield to Maturity as of 31-May-22 3.94
Modified Duration as of 31-May-22 6.57
Weighted Average YTM as of 31-May-22 3.94%
Effective Duration as of 31-May-22 6.60
Weighted Avg Maturity as of 31-May-22 9.08
WAL to Worst as of 31-May-22 9.08

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

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3
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Low Risk High Risk
Typically low rewards Typically high rewards

Ratings

Ratings

Morningstar Rating

3 stars
Overall Morningstar Rating for BGF US Government Mortgage Fund, Class I3, as of 31-May-22 rated against 206 USD Government Bond Funds.

Holdings

Holdings

as of 31-May-22
Name Weight (%)
GNMA2 30YR 54.04
UMBS 30YR TBA(REG A) 34.62
FNMA 30YR 2021 PRODUCTION 8.43
FNMA 30YR 2020 PRODUCTION 5.84
GNMA2 30YR 2020 PRODUCTION 5.62
Name Weight (%)
UMBS 15YR TBA(REG B) 4.90
FHLMC 30YR UMBS SUPER 3.96
UMBS 30YR TBA 3.59
FHLMC 30YR UMBS 2.10
FNMA 30YR 2.0% LB225K 2021 1.15
Holdings subject to change

Exposure Breakdowns

Exposure Breakdowns

as of 31-May-22

% of Market Value

Type Fund Benchmark Net
as of 31-May-22

% of Market Value

Type Fund Benchmark Net
as of 31-May-22

% 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

Investor Class Currency Distribution Frequency NAV NAV Amount Change NAV % Change NAV As Of 52wk High 52wk Low ISIN TIS
Class I3 USD Monthly 8.10 0.05 0.62 24-Jun-22 9.41 7.96 LU1456639035 -
Class I2 USD - 9.59 0.06 0.63 24-Jun-22 10.86 9.43 LU2011139206 -
Class A1 USD Monthly 7.91 0.04 0.51 24-Jun-22 9.20 7.79 LU0035308682 -
Class A2 USD None 18.38 0.11 0.60 24-Jun-22 20.91 18.08 LU0096258446 -
Class D2 USD None 19.23 0.12 0.63 24-Jun-22 21.80 18.91 LU0424777026 -
Class D3 USD Monthly 7.95 0.05 0.63 24-Jun-22 9.23 7.81 LU0592702145 -
Class A3 USD Monthly 7.93 0.05 0.63 24-Jun-22 9.21 7.79 LU0172418690 -

Portfolio Managers

Portfolio Managers

Akiva Dickstein
Akiva Dickstein
Matthew Kraeger
Matthew Kraeger
Bob Miller
Bob Miller
Managing Director

Bob Miller, Managing Director, is head of Americas Fundamental Fixed Income within BlackRock's Global Fixed Income group and a member of the Global Fixed Income Executive Committee.

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Bob Miller, Managing Director, is head of Americas Fundamental Fixed Income within BlackRock's Global Fixed Income group and a member of the Global Fixed Income Executive Committee. He is a portfolio manager of BlackRock's Core Bond, Total Return, and Strategic Income Opportunities Funds.

Prior to joining BlackRock in 2011, Mr. Miller was a co-founder and partner at the Round Table Investment Management Company, a multi-strategy, research-based investment company, where he managed a global macro strategy. Previously, Mr. Miller spent 20 years at Bank of America, where he served in a variety of roles, most recently as senior portfolio manager for the bank's proprietary multi-asset investment portfolio. Mr. Miller managed global interest rate, credit and foreign exchange portfolios during his tenure at Bank of America.

Mr. Miller is a former Trustee of Davidson College where he served as Chair of the Investment Committee, member of the Athletics Committee and member of the Presidential Search Committee. He currently serves as an advisor to the Investment Committee and is also actively involved with the Davidson July Experience program. Mr. Miller is a former Trustee and past Chairman of the Board at Trinity Episcopal School in Charlotte, NC. He currently serves as an advisor to the TES Investment Committee. He previously served as an advisor to the Investment Committee of St. Mary's School in Raleigh, NC.  Mr. Miller is a member of the Chairmen's Circle with the Central Park Conservancy in New York City. 

He earned a BA degree in economics from Davidson College.

Literature

Literature