Fixed Income

BGF US Dollar Short Duration Bond Fund

Overview

Important Information: Capital at Risk. All financial investments involve an element of risk. Therefore, the value of your investment and the income from it will vary and your initial investment amount cannot be guaranteed.

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. 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 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(s) may invest in structured credit products such as asset backed securities (‘ABS’) which pool together mortgages and other debts into single or multiple series credit products which are then passed on to investors, normally in return for interest payments based on the cash flows from the underlying assets. These securities have similar characteristics to corporate bonds but carry greater risk as the details of the underlying loans is unknown, although loans with similar terms are typically packaged together. The stability of returns from ABS are not only dependent on changes in interest-rates but also changes in the repayments of the underlying loans as a result of changes in economic conditions or the circumstances of the holder of the loan. These securities can therefore be more sensitive to economic events, may be subject to severe price movements and can be more difficult and/or more expensive to sell in difficult markets.

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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Distributions

Record Date Ex-Date Payable Date
View full table
  From
31-Dec-2015
To
31-Dec-2016
From
31-Dec-2016
To
31-Dec-2017
From
31-Dec-2017
To
31-Dec-2018
From
31-Dec-2018
To
31-Dec-2019
From
31-Dec-2019
To
31-Dec-2020
Total Return (%)

as of 31-Dec-20

- - - 4.80 3.37
Benchmark (%)

as of 31-Dec-20

- - - 4.07 3.34
  1y 3y 5y 10y Incept.
3.17 - - - 3.80
Benchmark (%)

as of 31-Jan-21

2.81 - - - 3.70
  YTD 1m 3m 1y 3y 5y 10y Incept.
0.19 0.19 1.19 3.17 - - - 9.13
Benchmark (%)

as of 31-Jan-21

0.03 0.03 0.24 2.81 - - - 8.88

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

Size of Fund (Millions) as of 25-Feb-21 USD 1,780.973
12m Trailing Yield as of 31-Jan-21 1.91
Number of Holdings as of 29-Jan-21 770
Base Currency U.S. Dollar
Fund Launch Date 31-Oct-02
Share Class launch date 26-Sep-18
Asset Class Fixed Income
Morningstar Category USD Diversified Bond - Short Term
Benchmark Index ICE BofAML 1-3 Year U.S. Government/Corporate Index
Domicile Luxembourg
Regulatory Structure UCITS
Management Company BlackRock (Luxembourg) S.A.
Ongoing Charges Figures 0.44%
ISIN LU1883300532
Bloomberg Ticker BGFUDI5
Initial Charge -
Performance Fee -
SEDOL BGR1RL7
Bloomberg Benchmark Ticker -
Dealing Settlement Trade Date + 3 days
Dealing Frequency Daily, forward pricing basis
Minimum Initial Investment USD 10000000
Minimum Subsequent Investment USD 1000
Use of Income Distributing

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 29-Jan-21 0.00%
MSCI - UN Global Compact Violators as of 29-Jan-21 1.62%
MSCI - Nuclear Weapons as of 29-Jan-21 0.00%
MSCI - Thermal Coal as of 29-Jan-21 0.03%
MSCI - Civilian Firearms as of 29-Jan-21 0.00%
MSCI - Oil Sands as of 29-Jan-21 0.00%
MSCI - Tobacco as of 29-Jan-21 0.56%

Business Involvement Coverage as of 29-Jan-21 25.25%
Percentage of Fund not covered as of 29-Jan-21 74.75%
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 0.09% 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
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Low Risk High Risk
Typically low rewards Typically high rewards

Ratings

Holdings

Holdings

as of 29-Jan-21
Name Weight (%)
TREASURY NOTE 1.5 01/31/2022 7.06
TREASURY NOTE 0.125 12/31/2022 4.74
TREASURY NOTE 0.125 07/15/2023 3.48
TREASURY NOTE 0.25 11/15/2023 3.10
TREASURY NOTE 0.125 01/15/2024 2.58
Name Weight (%)
TREASURY NOTE 0.125 12/15/2023 2.40
ISHARES $ SHORT DURATION HI YLD CO 2.38
ISHARES $ HIGH YIELD CRP BND ETF $ 2.03
TREASURY NOTE 0.125 11/30/2022 2.01
TREASURY NOTE 2 10/31/2021 1.96
Holdings subject to change

Exposure Breakdowns

Exposure Breakdowns

as of 29-Jan-21

% of Market Value

Type Fund Benchmark Net
as of 29-Jan-21

% of Market Value

Type Fund Benchmark Net
Negative weightings may result from specific circumstances (including timing differences between trade and settlement 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.
as of 29-Jan-21

% of Market Value

Type Fund Benchmark Net
Allocations subject to change.
as of 29-Jan-21

% of Market Value

Type Fund Benchmark Net
as of 29-Jan-21

% of Market Value

Type Fund Benchmark Net
as of 29-Jan-21

% 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 52wk High 52wk Low Bid Price ISIN Offer Price TIS
Class I5 USD USD Quarterly 10.36 -0.01 -0.10 10.37 9.61 - LU1883300532 - -
Class D2 Hedged EUR None 10.11 -0.01 -0.10 10.12 9.36 - LU1423762027 - -
Class I2 USD None 11.19 0.00 0.00 11.20 10.24 - LU1479925726 - -
Class D2 USD None 14.68 0.00 0.00 14.69 13.44 - LU0827887356 - -
Class A2 Hedged EUR None 10.13 0.00 0.00 10.14 9.40 - LU0839485744 - -
Class A3 USD Monthly 8.68 0.00 0.00 8.69 8.07 - LU0172419748 - -
Class D3 USD Monthly 9.97 0.00 0.00 9.97 9.27 - LU0592702228 - -
Class A2 USD None 14.26 0.00 0.00 14.27 13.10 - LU0154237225 - -
Class A3 Hedged SGD Monthly 9.73 0.00 0.00 9.74 9.07 - LU1062843773 - -
Class I2 Hedged EUR None 10.17 0.00 0.00 10.17 9.40 - LU1423762613 - -
Class A3 EUR Monthly 7.09 -0.07 -0.98 7.92 7.04 - LU0172420597 - -
Class A1 USD Daily 8.68 0.00 0.00 8.69 8.07 - LU0155445546 - -

Portfolio Managers

Portfolio Managers

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.

Akiva Dickstein
Akiva Dickstein
Scott MacLellan, CFA, CMT
Scott MacLellan, CFA, CMT

Literature

Literature