Fixed Income

BSF Emerging Markets Flexi Dynamic 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 may invest in securities whereby the issuing company has a high risk of defaulting on their interest payments, capital repayment or both. In the event of default, the value of the investment may reduce. 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 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. Certain developing countries are especially large debtors to commercial banks and foreign governments. Investment in debt obligations (sovereign debt) issued or guaranteed by developing governments or their agencies involve a high degree of risk. The Fund utilises derivatives as part of its investment strategy. Compared to a fund which only invests in traditional instruments such as stocks and bonds, derivatives are potentially subject to a higher level of risk and volatility. The strategies utilised by the Fund involve the use of derivatives to facilitate certain investment management techniques including the establishment of both ‘long’ and ‘synthetic short’ positions and creation of market leverage for the purposes of increasing the economic exposure of a Fund beyond the value of its net assets. The use of derivatives in this manner may have the effect of increasing the overall risk profile of the Fund. 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.

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 5 years.

  2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Total Return (%) -13.9 3.5 13.7 -12.3 -8.7
Comparator Benchmark 1 (%) 2.1 2.6 1.1 0.2 1.7
Comparator Benchmark 2 (%) -5.2 14.3 4.0 -5.3 -14.8

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

  1y 3y 5y 10y Incept.
9.64 -3.44 0.48 - -1.36
Comparator Benchmark 1 (%) 5.10 2.18 2.09 - 2.02
Comparator Benchmark 2 (%) 8.99 -3.73 0.92 - -
  YTD 1m 3m 6m 1y 3y 5y 10y Incept.
8.50 3.31 4.35 8.68 9.64 -9.97 2.41 - -8.37
Comparator Benchmark 1 (%) 4.72 0.44 1.35 2.70 5.10 6.69 10.88 - 13.55
Comparator Benchmark 2 (%) 7.65 5.47 1.36 4.40 8.99 -10.78 4.69 - -
  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/2023

-0.88 6.96 1.30 -17.82 5.34
Comparator Benchmark 1 (%)

as of 30/Sep/2023

2.64 1.57 0.21 0.77 4.76
Comparator Benchmark 2 (%)

as of 30/Sep/2023

10.91 -0.02 3.52 -22.45 11.58

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 05/Dec/2023 USD 1,084,375,842
Share Class launch date 19/Jul/2017
Fund Launch Date 12/Jun/2013
Share Class Currency EUR
Fund Base Currency USD
Asset Class Fixed Income
Comparator Benchmark 1 3 Month SOFR Compounded in Arrears
Comparator Benchmark 2 JP Morgan EMBI Global Diversified Index (50%) and JP Morgan GBI-EM Global Diversified Index (50%)
SFDR Classification Other
Initial Charge 0.00%
Ongoing Charges Figures 0.84%
ISIN LU1648247721
Annual Management Fee 0.75%
Performance Fee 0.00%
Minimum Initial Investment EUR 10,000,000.00
Minimum Subsequent Investment EUR 1,000.00
Use of Income Accumulating
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 BSEFI2E
SEDOL BF425K1

Portfolio Characteristics

Portfolio Characteristics

Number of Holdings as of 31/Oct/2023 334
Standard Deviation (3y) as of 30/Nov/2023 8.02%
3y Beta as of 30/Nov/2023 4.481
Yield to Maturity as of 31/Oct/2023 7.53
Modified Duration as of 31/Oct/2023 4.57
Weighted Average YTM as of 31/Oct/2023 7.52%
Effective Duration as of 31/Oct/2023 4.63
Weighted Avg Maturity as of 31/Oct/2023 6.07
WAL to Worst as of 31/Oct/2023 6.07

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/2023 BB
MSCI ESG % Coverage as of 25/Oct/2023 89.24
MSCI ESG Quality Score (0-10) as of 25/Oct/2023 4.02
MSCI ESG Quality Score - Peer Percentile as of 25/Oct/2023 31.67
Fund Lipper Global Classification as of 25/Oct/2023 Bond Emerging Markets Global HC
Funds in Peer Group as of 25/Oct/2023 420
MSCI Weighted Average Carbon Intensity (Tons CO2E/$M SALES) as of 25/Oct/2023 1,083.84
MSCI Weighted Average Carbon Intensity % Coverage as of 25/Oct/2023 19.95
All data is from MSCI ESG Fund Ratings as of 25/Oct/2023, based on holdings as of 31/Mar/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/Oct/2023 0.00%
MSCI - UN Global Compact Violators as of 31/Oct/2023 6.17%
MSCI - Nuclear Weapons as of 31/Oct/2023 0.00%
MSCI - Thermal Coal as of 31/Oct/2023 0.00%
MSCI - Civilian Firearms as of 31/Oct/2023 0.00%
MSCI - Oil Sands as of 31/Oct/2023 0.00%
MSCI - Tobacco as of 31/Oct/2023 0.00%

Business Involvement Coverage as of 31/Oct/2023 11.68%
Percentage of Fund not covered as of 31/Oct/2023 89.35%
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 0.31% and for Oil Sands 0.00%.

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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Low Risk High Risk
Typically low rewards Typically high rewards

Ratings

Ratings

Morningstar Rating

4 stars
Overall Morningstar Rating for BSF Emerging Markets Flexi Dynamic Bond Fund, Class I2 Hedged, as of 30/Nov/2023 rated against 881 Global Emerging Markets Bond - EUR Biased Funds.

Holdings

Holdings

as of 31/Oct/2023
Name Weight (%)
BRAZIL LETRAS DO TESOURO NACIONAL 0 04/01/2024 5.91
MEXICO (UNITED MEXICAN STATES) (GO 8.5 05/31/2029 5.45
COLOMBIA (REPUBLIC OF) 7.5 08/26/2026 5.12
TREASURY NOTE 3 07/31/2024 3.11
INDONESIA (REPUBLIC OF) 7 05/15/2027 3.11
Name Weight (%)
MEXICO (UNITED MEXICAN STATES) 7.5 06/03/2027 2.88
PETROLEOS DE VENEZUELA SA RegS 0 05/17/2035 2.86
PETROLEOS DE VENEZUELA SA RegS 8.5 10/27/2020 1.86
SOUTH AFRICA (REPUBLIC OF) 7 02/28/2031 1.76
COLOMBIA (REPUBLIC OF) 5.75 11/03/2027 1.63
Holdings subject to change

Exposure Breakdowns

Exposure Breakdowns

as of 31/Oct/2023

% of Market Value

Type Fund Benchmark Net
as of 31/Oct/2023

% of Market Value

Type Fund Benchmark Net
as of 31/Oct/2023

% of Market Value

Type Fund Benchmark Net
as of 31/Oct/2023

% of Market Value

Type Fund Benchmark Net
as of 31/Oct/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 NAV NAV Amount Change NAV % Change NAV As Of 52wk High 52wk Low ISIN
Class I2 Hedged EUR 92.08 -0.19 -0.21 05/Dec/2023 92.27 83.17 LU1648247721
Class D5 EUR 86.64 -0.14 -0.16 05/Dec/2023 86.78 79.29 LU1800013283
Class A2 USD 114.05 -0.24 -0.21 05/Dec/2023 114.29 102.06 LU0940382277
Class D4 GBP 87.31 -0.23 -0.26 05/Dec/2023 88.36 79.86 LU0997362164
Class D2 Hedged CHF 85.29 -0.19 -0.22 05/Dec/2023 85.48 78.38 LU1567862849
Class I4 Hedged EUR 71.69 -0.16 -0.22 05/Dec/2023 71.85 65.67 LU1418627409
Class D5 Hedged EUR 71.19 -0.15 -0.21 05/Dec/2023 71.34 65.86 LU1814255391
Class D2 Hedged EUR 104.52 -0.23 -0.22 05/Dec/2023 104.75 94.57 LU0949128226
Class I5 EUR 83.16 -0.14 -0.17 05/Dec/2023 83.30 76.11 LU1722863567
Class D2 USD 123.81 -0.26 -0.21 05/Dec/2023 124.07 110.17 LU0949128572
Class A2 Hedged CHF 81.45 -0.18 -0.22 05/Dec/2023 81.63 75.26 LU1567863144
Class A2 Hedged SEK 83.74 -0.18 -0.21 05/Dec/2023 83.92 76.18 LU1715606080
Class I2 USD 123.39 -0.26 -0.21 05/Dec/2023 123.65 109.64 LU1118028742
Class A2 Hedged EUR 95.67 -0.21 -0.22 05/Dec/2023 95.88 87.04 LU1072451542
Class A4 Hedged GBP 74.49 -0.15 -0.20 05/Dec/2023 74.64 68.13 LU1072457747
Class I5 Hedged EUR 66.23 -0.15 -0.23 05/Dec/2023 66.38 61.25 LU1781817264
Class D5 USD 82.13 -0.17 -0.21 05/Dec/2023 82.30 75.73 LU1308276671
Class D4 Hedged GBP 74.20 -0.15 -0.20 05/Dec/2023 74.35 67.57 LU1093538335

Portfolio Managers

Portfolio Managers

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