Fixed Income

BGF Emerging Markets Corporate 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.

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 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 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. 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 may invest in smaller company shares which can be more unpredictable and less liquid than those of larger company shares.

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

Chart

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This chart shows the fund's performance as the percentage loss or gain per year over the last 2 years.

  2019 2020 2021 2022 2023
Total Return (%) -12.3 7.2
Constraint Benchmark 1 (%) -12.3 9.1

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

  1y 3y 5y 10y Incept.
10.01 -0.89 - - -0.34
Constraint Benchmark 1 (%) 9.30 -0.32 - - 0.28
  YTD 1m 3m 6m 1y 3y 5y 10y Incept.
4.44 1.12 1.54 4.44 10.01 -2.66 - - -1.10
Constraint Benchmark 1 (%) 3.85 0.93 1.49 3.85 9.30 -0.97 - - 0.89
  From
30-Jun-2019
To
30-Jun-2020
From
30-Jun-2020
To
30-Jun-2021
From
30-Jun-2021
To
30-Jun-2022
From
30-Jun-2022
To
30-Jun-2023
From
30-Jun-2023
To
30-Jun-2024
Total Return (%)

as of 30/Jun/2024

- - -16.14 5.52 10.01
Constraint Benchmark 1 (%)

as of 30/Jun/2024

- - -14.25 5.66 9.30

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 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 22/Jul/2024
USD 855,823,954
Fund Launch Date
18/Feb/2013
Fund Base Currency
USD
Constraint Benchmark 1
J.P. Morgan Corporate Emerging Markets Bond Index Broad Diversified
Initial Charge
0.00%
ISIN
LU2319962499
Performance Fee
0.00%
Minimum Subsequent Investment
USD 1,000.00
Domicile
Luxembourg
Management Company
BlackRock (Luxembourg) S.A.
Dealing Settlement
Trade Date + 3 days
Bloomberg Ticker
BGMCBSU
Share Class launch date
14/Apr/2021
Share Class Currency
USD
Asset Class
Fixed Income
SFDR Classification
Other
Ongoing Charges Figures
0.79%
Annual Management Fee
0.75%
Minimum Initial Investment
USD 50,000,000.00
Use of Income
Accumulating
Regulatory Structure
UCITS
Morningstar Category
-
Dealing Frequency
Daily, forward pricing basis
SEDOL
BNXHCJ1

Portfolio Characteristics

Portfolio Characteristics

Number of Holdings
as of 28/Jun/2024
159
3y Beta
as of 30/Jun/2024
1.076
Modified Duration
as of 28/Jun/2024
4.61
Effective Duration
as of 28/Jun/2024
3.71
WAL to Worst
as of 28/Jun/2024
6.48
Standard Deviation (3y)
as of 30/Jun/2024
8.01%
Yield to Maturity
as of 28/Jun/2024
7.27
Weighted Average YTM
as of 28/Jun/2024
7.14%
Weighted Avg Maturity
as of 28/Jun/2024
6.48

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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3
4
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Low Risk High Risk
Typically low rewards Typically high rewards

Ratings

Holdings

Holdings

as of 28/Jun/2024
Name Weight (%)
BANCO DE CREDITO E INVERSIONES RegS 8.75 12/31/2079 1.49
SAMARCO MINERACAO SA RegS 9.5 06/30/2031 1.46
STILLWATER MINING COMPANY RegS 4.5 11/16/2029 1.46
YPF SA RegS 9.5 01/17/2031 1.39
AES PANAMA GENERATION HOLDINGS SRL RegS 4.375 05/31/2030 1.37
Name Weight (%)
GRUPO POSADAS SAB DE CV RegS 7 12/30/2027 1.22
GEMS MENASA (CAYMAN) LTD RegS 7.125 07/31/2026 1.19
MUTHOOT FINANCE LTD MTN RegS 7.125 02/14/2028 1.18
MILLICOM INTERNATIONAL CELLULAR S. RegS 7.375 04/02/2032 1.17
MVM ENERGETIKA ZRT RegS 7.5 06/09/2028 1.14
Holdings subject to change

Exposure Breakdowns

Exposure Breakdowns

as of 28/Jun/2024

% of Market Value

Type Fund Benchmark Net
as of 28/Jun/2024

% of Market Value

Type Fund Benchmark Net
as of 28/Jun/2024

% of Market Value

Type Fund Benchmark Net
as of 28/Jun/2024

% of Market Value

Type Fund Benchmark Net
as of 28/Jun/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 SR2 USD 9.98 0.00 0.00 22/Jul/2024 9.99 8.78 LU2319962499
Class SR3 USD 10.36 0.00 0.00 22/Jul/2024 10.37 9.56 LU2518861054
Class A2 Hedged EUR 11.23 0.00 0.00 22/Jul/2024 11.24 10.07 LU0843229971
Class A6 USD 10.21 0.00 0.00 22/Jul/2024 10.22 9.99 LU2728924155
Class A2 USD 13.60 0.00 0.00 22/Jul/2024 13.61 12.03 LU0843229542
Class D6 Hedged SGD 10.16 0.01 0.10 22/Jul/2024 10.18 9.97 LU2728924312
Class I2 Hedged EUR 12.66 0.00 0.00 22/Jul/2024 12.67 11.28 LU0995332854
Class I5 Hedged EUR 7.98 0.00 0.00 22/Jul/2024 8.07 7.46 LU2323324769
Class A2 Hedged SGD 10.21 0.00 0.00 22/Jul/2024 10.22 9.89 LU2776000999
Class D3 Hedged GBP 8.80 0.00 0.00 22/Jul/2024 8.81 8.16 LU0995319919
Class SR3 Hedged GBP 8.30 0.00 0.00 22/Jul/2024 8.30 7.69 LU2319962226
Class SR2 Hedged EUR 9.34 0.00 0.00 22/Jul/2024 9.35 8.32 LU2319962143
Class I2 USD 15.07 0.00 0.00 22/Jul/2024 15.08 13.25 LU0843232686
Class D2 USD 14.83 0.00 0.00 22/Jul/2024 14.84 13.06 LU0843231795
Class I2 Hedged CHF 10.91 0.00 0.00 22/Jul/2024 10.92 9.89 LU2491188269
Class I4 Hedged EUR 8.14 0.00 0.00 22/Jul/2024 8.15 7.25 LU2259865686
Class A6 Hedged SGD 10.12 0.00 0.00 22/Jul/2024 10.17 9.95 LU2728924239
Class D2 Hedged EUR 10.25 0.00 0.00 22/Jul/2024 10.26 9.15 LU1728038495

Portfolio Managers

Portfolio Managers

Celina Merrill
Celina Merrill
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.

Jane Yu
Jane Yu
Mark Yu
Mark Yu

Literature

Literature