Fixed Income

BGF ESG Global Bond Income 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.

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. Derivatives may be highly sensitive to changes in the value of the asset on which they are based and can increase the size of losses and gains, resulting in greater fluctuations in the value of the Fund. The impact to the Fund can be greater where derivatives are used in an extensive or complex way. 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

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Reinvestments

This product does not have any distributions data as of now.
  From
30-Jun-2016
To
30-Jun-2017
From
30-Jun-2017
To
30-Jun-2018
From
30-Jun-2018
To
30-Jun-2019
From
30-Jun-2019
To
30-Jun-2020
From
30-Jun-2020
To
30-Jun-2021
Total Return (%)

as of 30-Jun-21

- - - 1.71 1.58
  1y 3y 5y 10y Incept.
6.11 4.21 - - 4.05
  YTD 1m 3m 1y 3y 5y 10y Incept.
5.65 1.04 3.85 6.11 13.15 - - 12.76

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 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

Size of Fund (Millions) as of 24-Sep-21 USD 139.023
12m Trailing Yield -
Number of Holdings as of 31-Aug-21 604
Base Currency U.S. Dollar
Fund Launch Date 16-Jul-18
Share Class launch date 22-Aug-18
Asset Class Fixed Income
Morningstar Category -
SFDR Classification Article 8
Domicile Luxembourg
Regulatory Structure UCITS
Management Company BlackRock (Luxembourg) S.A.
Ongoing Charges Figures 0.58%
ISIN LU1864663817
Bloomberg Ticker BGBII2E
Initial Charge -
Performance Fee -
SEDOL BG0NM60
Dealing Settlement Trade Date + 3 days
Dealing Frequency Daily, forward pricing basis
Minimum Initial Investment EUR 10,000,000.00
Minimum Subsequent Investment EUR 1,000.00
Use of Income Accumulating

Portfolio Characteristics

Portfolio Characteristics

Weighted Average YTM as of 31-Aug-21 3.55%
Modified Duration as of 31-Aug-21 3.40
Effective Duration as of 31-Aug-21 1.98
Weighted Avg Maturity as of 31-Aug-21 6.47
WAL to Worst as of 31-Aug-21 6.47
Option Adjusted Spread as of 31-Aug-21 309.10
Average Credit Rating as of 31-Aug-21 BBB-
Spread Duration as of 31-Aug-21 4.65

Sustainability Characteristics

Sustainability Characteristics

To be included in MSCI ESG Fund Ratings, 65% of the fund’s gross weight must come from securities covered 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. For newly launched funds, sustainability characteristics are typically available 6 months after launch. MSCI Ratings are currently unavailable for this fund.

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-21 0.00%
MSCI - UN Global Compact Violators as of 31-Aug-21 0.00%
MSCI - Nuclear Weapons as of 31-Aug-21 0.00%
MSCI - Thermal Coal as of 31-Aug-21 0.00%
MSCI - Civilian Firearms as of 31-Aug-21 0.00%
MSCI - Oil Sands as of 31-Aug-21 0.00%
MSCI - Tobacco as of 31-Aug-21 0.00%

Business Involvement Coverage as of 31-Aug-21 34.15%
Percentage of Fund not covered as of 31-Aug-21 65.87%
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 0.32% and for Oil Sands 0.26%.

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 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 phase of the investment process. ESG information may be sourced internally, via collaboration with the BlackRock Investment Stewardship team in engaging issuers on material environmental, social or governance topics, or from third-party providers. The Fund manager’s ongoing monitoring of the portfolio involves 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
4
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7
Low Risk High Risk
Typically low rewards Typically high rewards

Ratings

Holdings

Holdings

as of 31-Aug-21
Name Weight (%)
UMBS 30YR TBA(REG A) 4.99
CHINA PEOPLES REPUBLIC OF (GOVERNM 3.27 11/19/2030 4.08
FLAT_18-1A A 144A 0.87
NCMS_18-SOX E 144A 0.59
CIFC_17-1A B 144A 0.56
Name Weight (%)
TREASURY (CPI) NOTE 0.125 04/15/2025 0.55
KILROY REALTY LP 2.5 11/15/2032 0.54
SPAIN (KINGDOM OF) 3.45 07/30/2066 0.52
GSAMP_07-HSB1 M7 0.49
TAH_17-SFR1 F 144A 0.49
Holdings subject to change

Exposure Breakdowns

Exposure Breakdowns

as of 31-Aug-21

% of Market Value

Type Fund
as of 31-Aug-21

% of Market Value

Type Fund
as of 31-Aug-21

% of Market Value

Type Fund
as of 31-Aug-21

% of Market Value

Type Fund
as of 31-Aug-21

% of Market Value

Type Fund
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 52wk High 52wk Low Bid Price ISIN Offer Price TIS
Class I2 EUR - 9.78 0.01 0.10 9.80 9.16 - LU1864663817 - -
Class A6 Hedged NZD Monthly 9.56 -0.01 -0.10 9.78 9.50 - LU1978683412 - -
Class Z2 Hedged EUR - 10.81 -0.02 -0.18 10.87 10.33 - LU1893598885 - -
Class A6 Hedged HKD Monthly 97.21 -0.13 -0.13 99.58 96.66 - LU1978682877 - -
Class A6 Hedged SGD Monthly 9.60 -0.01 -0.10 9.82 9.53 - LU1978683172 - -
Class Z2 Hedged CHF - 10.71 -0.01 -0.09 10.76 10.26 - LU1893598968 - -
Class A6 Hedged GBP Monthly 9.47 -0.01 -0.11 9.70 9.43 - LU1978683255 - -
Class I2 BRL Hedged (USD) USD - 8.19 -0.09 -1.09 8.80 7.06 - LU2008661345 - -
Class D2 USD USD None 11.39 -0.01 -0.09 11.45 10.81 - LU1842103555 - -
Class D2 EUR None 9.72 0.01 0.10 9.74 9.12 - LU1864663650 - -
Class A6 USD Monthly 9.79 -0.01 -0.10 10.01 9.72 - LU1842103472 - -
Class A8 Hedged CNH Monthly 99.97 -0.13 -0.13 100.97 97.64 - LU1978683685 - -
Class I2 USD - 11.46 -0.01 -0.09 11.52 10.86 - LU1864663734 - -
Class D2 EUR Hedged EUR None 10.63 -0.02 -0.19 10.69 10.18 - LU1842103639 - -
Class A6 Hedged EUR Monthly 9.31 -0.01 -0.11 9.58 9.31 - LU1978683099 - -
Class A6 Hedged AUD Monthly 9.52 -0.01 -0.10 9.75 9.47 - LU1978683339 - -
Class A6 Hedged CAD Monthly 9.60 -0.02 -0.21 9.84 9.55 - LU1978682950 - -
Class D2 GBP Hedged GBP None 10.91 -0.02 -0.18 10.97 10.39 - LU1842103803 - -
Class I2 Hedged EUR - 10.74 -0.02 -0.19 10.80 10.27 - LU1864663908 - -
Class D2 CHF Hedged CHF None 10.53 -0.01 -0.09 10.58 10.11 - LU1842103712 - -
Class A2 USD None 11.22 -0.01 -0.09 11.28 10.70 - LU1842103399 - -
Class Z2 USD - 11.50 -0.01 -0.09 11.55 10.89 - LU1893598703 - -

Portfolio Managers

Portfolio Managers

Rick Rieder
Portfolio Manager, BlackRock’s Green Bond Mandates

Rick Rieder, Managing Director, is BlackRock's Chief Investment Officer of Global Fixed Income.

Amer Bisat
Amer Bisat
Robert Wuertz
Robert Wuertz

Literature

Literature