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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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 5 years.

  2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Total Return (%) 8.4 5.1 -4.4 -0.6 11.5
Comparator Benchmark 1 (%) -0.4 -0.4 -0.6 0.3 3.4
Comparator Benchmark 2 (%) 16.4 -4.6 1.9 -9.2 8.1

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

  1y 3y 5y 10y Incept.
16.80 4.34 3.11 - 2.92
Comparator Benchmark 1 (%) 3.84 1.55 0.75 - 0.55
Comparator Benchmark 2 (%) 8.47 1.03 0.97 - -
  YTD 1m 3m 6m 1y 3y 5y 10y Incept.
2.59 -0.22 2.11 6.15 16.80 13.60 16.53 - 19.05
Comparator Benchmark 1 (%) 1.30 0.33 0.95 1.94 3.84 4.72 3.79 - 3.40
Comparator Benchmark 2 (%) 1.08 -1.12 0.68 6.06 8.47 3.11 4.94 - -
  From
31-Mar-2019
To
31-Mar-2020
From
31-Mar-2020
To
31-Mar-2021
From
31-Mar-2021
To
31-Mar-2022
From
31-Mar-2022
To
31-Mar-2023
From
31-Mar-2023
To
31-Mar-2024
Total Return (%)

as of 31/Mar/2024

-0.77 5.92 -3.68 -0.04 14.76
Comparator Benchmark 1 (%)

as of 31/Mar/2024

-0.42 -0.47 -0.55 1.12 3.74
Comparator Benchmark 2 (%)

as of 31/Mar/2024

- 6.93 -2.78 -1.51 8.71

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 24/May/2024
USD 1,169,455,701
Fund Launch Date
12/Jun/2013
Fund Base Currency
USD
Comparator Benchmark 1
3 Month EURIBOR Index
SFDR Classification
Other
Ongoing Charges Figures
1.03%
Annual Management Fee
-
Minimum Initial Investment
EUR 100,000.00
Use of Income
Distributing
Regulatory Structure
UCITS
Morningstar Category
-
Dealing Frequency
Daily, forward pricing basis
SEDOL
BYQL7P8
Share Class launch date
11/Apr/2018
Share Class Currency
EUR
Asset Class
Fixed Income
Comparator Benchmark 2
50% JPMGBIEEU / 50% EMBIGDEUR Index
Initial Charge
5.00%
ISIN
LU1800013283
Performance Fee
-
Minimum Subsequent Investment
EUR 1,000.00
Domicile
Luxembourg
Management Company
BlackRock (Luxembourg) S.A.
Dealing Settlement
Trade Date + 3 days
Bloomberg Ticker
BSEFD5E

Portfolio Characteristics

Portfolio Characteristics

Number of Holdings
as of 30/Apr/2024
294
Standard Deviation (3y)
as of 30/Apr/2024
6.38%
Yield to Maturity
as of 30/Apr/2024
8.05
Weighted Average YTM
as of 30/Apr/2024
7.73%
Weighted Avg Maturity
as of 30/Apr/2024
6.60
12 Month Trailing Dividend Distribution Yield
as of 30/Apr/2024
5.48
3y Beta
as of 30/Apr/2024
2.180
Modified Duration
as of 30/Apr/2024
4.94
Effective Duration
as of 30/Apr/2024
4.98
WAL to Worst
as of 30/Apr/2024
6.60

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 19/May/2024
BB
MSCI ESG Quality Score (0-10)
as of 19/May/2024
3.92
Fund Lipper Global Classification
as of 19/May/2024
Bond Emerging Markets Global HC
MSCI Weighted Average Carbon Intensity (Tons CO2E/$M SALES)
as of 19/May/2024
779.85
MSCI ESG % Coverage
as of 19/May/2024
87.71
MSCI ESG Quality Score - Peer Percentile
as of 19/May/2024
36.02
Funds in Peer Group
as of 19/May/2024
422
MSCI Weighted Average Carbon Intensity % Coverage
as of 19/May/2024
14.44
All data is from MSCI ESG Fund Ratings as of 19/May/2024, based on holdings as of 31/Oct/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 30/Apr/2024
0.00%
MSCI - Nuclear Weapons
as of 30/Apr/2024
0.00%
MSCI - Civilian Firearms
as of 30/Apr/2024
0.00%
MSCI - Tobacco
as of 30/Apr/2024
0.00%
MSCI - UN Global Compact Violators
as of 30/Apr/2024
7.10%
MSCI - Thermal Coal
as of 30/Apr/2024
0.00%
MSCI - Oil Sands
as of 30/Apr/2024
0.00%

Business Involvement Coverage
as of 30/Apr/2024
13.86%
Percentage of Fund not covered
as of 30/Apr/2024
87.56%
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 0.23% 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

1
2
3
4
5
6
7
Low Risk High Risk
Typically low rewards Typically high rewards

Ratings

Holdings

Holdings

as of 30/Apr/2024
Name Weight (%)
MEXICO (UNITED MEXICAN STATES) (GO 8.5 05/31/2029 5.79
BRAZIL (FEDERATIVE REPUBLIC OF) 6 08/15/2024 5.42
COLOMBIA (REPUBLIC OF) 7.5 08/26/2026 3.73
PETROLEOS DE VENEZUELA SA RegS 0 05/17/2035 2.10
COLOMBIA REPUBLIC OF (GOVERNMENT) 6 04/28/2028 1.96
Name Weight (%)
EGYPT (ARAB REPUBLIC OF) MTN RegS 7.903 02/21/2048 1.84
UKRAINE (GOVERNMENT OF) RegS 7.75 08/01/2041 1.71
ARGENTINA REPUBLIC OF GOVERNMENT 3.625 07/09/2035 1.70
ECOPETROL SA 8.375 01/19/2036 1.33
CZECH REPUBLIC 5.5 12/12/2028 1.33
Holdings subject to change

Exposure Breakdowns

Exposure Breakdowns

as of 30/Apr/2024

% of Market Value

Type Fund Benchmark Net
as of 30/Apr/2024

% of Market Value

Type Fund Benchmark Net
as of 30/Apr/2024

% of Market Value

Type Fund Benchmark Net
as of 30/Apr/2024

% of Market Value

Type Fund Benchmark Net
as of 30/Apr/2024

% 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 D5 EUR 87.24 -0.29 -0.33 24/May/2024 89.00 80.85 LU1800013283
Class A2 Hedged EUR 97.92 -0.26 -0.26 24/May/2024 99.46 87.42 LU1072451542
Class I4 Hedged EUR 73.71 -0.19 -0.26 24/May/2024 74.77 65.67 LU1418627409
Class A4 Hedged GBP 76.67 -0.20 -0.26 24/May/2024 77.75 68.13 LU1072457747
Class I5 EUR 83.73 -0.28 -0.33 24/May/2024 85.42 77.60 LU1722863567
Class A2 Hedged SEK 85.58 -0.22 -0.26 24/May/2024 86.96 76.56 LU1715606080
Class D2 USD 128.32 -0.34 -0.26 24/May/2024 129.90 111.49 LU0949128572
Class D2 Hedged EUR 107.38 -0.29 -0.27 24/May/2024 108.96 95.12 LU0949128226
Class D4 Hedged GBP 76.67 -0.20 -0.26 24/May/2024 77.67 67.57 LU1093538335
Class A2 USD 117.78 -0.31 -0.26 24/May/2024 119.34 103.10 LU0940382277
Class I2 Hedged EUR 94.68 -0.25 -0.26 24/May/2024 96.06 83.69 LU1648247721
Class I2 USD 127.99 -0.34 -0.26 24/May/2024 129.54 111.00 LU1118028742
Class I5 Hedged EUR 66.18 -0.17 -0.26 24/May/2024 67.96 61.25 LU1781817264
Class A2 Hedged CHF 82.45 -0.23 -0.28 24/May/2024 84.26 75.29 LU1567863144
Class D4 GBP 89.88 -0.30 -0.33 24/May/2024 92.00 79.86 LU0997362164
Class D2 Hedged CHF 86.61 -0.23 -0.26 24/May/2024 88.26 78.53 LU1567862849
Class D5 USD 82.76 -0.22 -0.27 24/May/2024 84.38 75.73 LU1308276671
Class D5 Hedged EUR 71.13 -0.19 -0.27 24/May/2024 73.04 65.86 LU1814255391

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