Fixed Income

BGF US Dollar High Yield 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.

Non-investment grade fixed income securities are more sensitive to changes in interest rates and present greater ‘Credit Risk’ than higher rated fixed income securities. 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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This chart shows the fund's performance as the percentage loss or gain per year over the last 10 years. It can help you to assess how the fund has been managed in the past and compare it to its benchmark.

  2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Total Return (%) 15.0 7.3 2.0 -5.0 12.8 5.5 -5.5 11.7 4.1 4.1
Constraint Benchmark 1 (%) 15.8 7.4 2.5 -4.4 17.1 7.5 -2.1 14.3 7.0 5.3
  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
From
30-Jun-2021
To
30-Jun-2022
Total Return (%)

as of 30-Jun-22

0.85 3.19 -2.55 13.68 -14.15
Constraint Benchmark 1 (%)

as of 30-Jun-22

2.62 7.48 0.00 15.34 -12.82
  1y 3y 5y 10y Incept.
-11.70 -0.89 0.29 2.65 3.85
Constraint Benchmark 1 (%) -10.61 1.00 2.57 4.50 5.54
  YTD 1m 3m 6m 1y 3y 5y 10y Incept.
-12.17 -1.81 -3.74 -8.31 -11.70 -2.65 1.44 29.84 57.49
Constraint Benchmark 1 (%) -11.21 -2.30 -3.51 -7.78 -10.61 3.03 13.52 55.35 91.35

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

Net Assets of Fund as of 30-Sep-22 USD 2,151,843,622
Share Class launch date 18-Aug-10
Fund Launch Date 29-Oct-93
Share Class Currency EUR
Fund Base Currency USD
Asset Class Fixed Income
Constraint Benchmark 1 Bloomberg US Corporate High Yield 2% Constrained Index
SFDR Classification Article 8
Initial Charge 5.00%
Ongoing Charges Figures 0.76%
Annual Management Fee 0.55%
Performance Fee 0.00%
Minimum Initial Investment EUR 100,000.00
Minimum Subsequent Investment EUR 1,000.00
Use of Income Accumulating
Domicile Luxembourg
Regulatory Structure UCITS
Management Company BlackRock (Luxembourg) S.A.
Morningstar Category Other Bond
Dealing Settlement Trade Date + 3 days
Dealing Frequency Daily, forward pricing basis
Bloomberg Ticker BGUHYD2
ISIN LU0532707519
SEDOL B5369T1

Portfolio Characteristics

Portfolio Characteristics

Number of Holdings as of 31-Aug-22 1278
Standard Deviation (3y) as of 31-Aug-22 10.48%
3y Beta as of 31-Aug-22 0.970
Yield to Maturity as of 31-Aug-22 7.79
Modified Duration as of 31-Aug-22 4.53
Weighted Average YTM as of 31-Aug-22 7.79%
Effective Duration as of 31-Aug-22 4.26
Weighted Avg Maturity as of 31-Aug-22 6.02
WAL to Worst as of 31-Aug-22 6.02

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 21-Sep-22 BBB
MSCI ESG % Coverage as of 21-Sep-22 68.57
MSCI ESG Quality Score (0-10) as of 21-Sep-22 5.36
MSCI ESG Quality Score - Peer Percentile as of 21-Sep-22 55.38
Fund Lipper Global Classification as of 21-Sep-22 Bond USD High Yield
Funds in Peer Group as of 21-Sep-22 381
MSCI Weighted Average Carbon Intensity (Tons CO2E/$M SALES) as of 21-Sep-22 286.17
MSCI Weighted Average Carbon Intensity % Coverage as of 21-Sep-22 67.19
All data is from MSCI ESG Fund Ratings as of 21-Sep-22, based on holdings as of 30-Apr-22. 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% 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. For newly launched funds, Sustainability Characteristics are typically available 6 months after launch.

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-22 0.00%
MSCI - UN Global Compact Violators as of 31-Aug-22 0.00%
MSCI - Nuclear Weapons as of 31-Aug-22 0.00%
MSCI - Thermal Coal as of 31-Aug-22 0.00%
MSCI - Civilian Firearms as of 31-Aug-22 0.00%
MSCI - Oil Sands as of 31-Aug-22 0.00%
MSCI - Tobacco as of 31-Aug-22 0.00%

Business Involvement Coverage as of 31-Aug-22 41.21%
Percentage of Fund not covered as of 31-Aug-22 59.01%
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 0.00% 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 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 the investment research, portfolio construction, and investment monitoring phases of the investment process. The Fund manager maintains internal ESG scorecards for new primary issuers under consideration for investment and existing issuers of publicly traded securities. These scorecards analyze and track internal and external research views across a range of environmental, social, and governance factors sourced from primary and third party ESG information and research. Portfolio management teams consider the sector and issuer ESG views and scores when selecting individual investments during portfolio construction. ESG factors are debated and considered in investment decisions. The Fund manager also considers ESG criteria during post-investment monitoring and conducts regular portfolio risk reviews with the Risk and Quantitative Analysis group. These reviews include discussion of the portfolio’s exposure to material ESG risks.

Risk Indicator

Risk Indicator

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Low Risk High Risk
Typically low rewards Typically high rewards

Ratings

Ratings

Morningstar Analyst Rating

Morningstar Analyst Rating - Silver
Morningstar has awarded the Fund a Silver medal. Fewer than 10% of US open-end funds hold medalist ratings. (Effective 09-Oct-19)

Holdings

Holdings

as of 31-Aug-22
Name Weight (%)
CLARIOS GLOBAL LP 144A 8.5 05/15/2027 0.88
ZAYO GROUP HOLDINGS INC 144A 4 03/01/2027 0.67
ALLIANT HOLDINGS INTERMEDIATE LLC 144A 6.75 10/15/2027 0.64
VERSCEND ESCROW CORP 144A 9.75 08/15/2026 0.64
SPRINT CAPITAL CORPORATION 8.75 03/15/2032 0.56
Name Weight (%)
ALTICE FRANCE HOLDING SA 144A 10.5 05/15/2027 0.56
ISHARES $ HIGH YIELD CRP BND ETF $ 0.56
NFP CORP 144A 6.875 08/15/2028 0.55
ZAYO GROUP HOLDINGS INC 144A 6.125 03/01/2028 0.54
VENTURE GLOBAL CALCASIEU PASS LLC 144A 3.875 11/01/2033 0.52
Holdings subject to change

Exposure Breakdowns

Exposure Breakdowns

as of 31-Aug-22

% of Market Value

Type Fund Benchmark Net
as of 31-Aug-22

% of Market Value

Type Fund Benchmark Net
as of 31-Aug-22

% 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 Distribution Frequency NAV NAV Amount Change NAV % Change NAV As Of 52wk High 52wk Low ISIN TIS
Class D2 Hedged EUR None 206.40 -0.28 -0.14 30-Sep-22 247.68 206.40 LU0532707519 -
Class I4 Hedged GBP Annual 7.45 -0.01 -0.13 30-Sep-22 9.33 7.45 LU1111085442 -
Class A3 Hedged CAD Monthly 8.38 -0.05 -0.59 30-Sep-22 10.34 8.38 LU0803751741 -
Class A2 Hedged EUR None 191.15 -0.26 -0.14 30-Sep-22 230.57 191.15 LU0330917963 -
Class I2 Hedged EUR None 10.66 -0.01 -0.09 30-Sep-22 12.78 10.66 LU1111085798 -
Class A1 USD Monthly 4.92 0.00 0.00 30-Sep-22 6.03 4.92 LU0046675905 -
Class A2 USD None 33.20 -0.04 -0.12 30-Sep-22 39.34 33.20 LU0046676465 -
Class D2 Hedged AUD None 17.18 -0.02 -0.12 30-Sep-22 20.45 17.18 LU0827886895 -
Class A3 Hedged EUR Monthly 7.42 -0.04 -0.54 30-Sep-22 9.29 7.42 LU0578943853 -
Class A2 Hedged SGD None 14.09 -0.02 -0.14 30-Sep-22 16.76 14.09 LU0578945809 -
Class A6 USD Monthly 4.03 -0.02 -0.49 30-Sep-22 5.04 4.03 LU0738912566 -
Class A2 Hedged CHF None 9.78 -0.01 -0.10 30-Sep-22 11.81 9.78 LU1090155554 -
Class A3 Hedged AUD Monthly 9.31 -0.05 -0.53 30-Sep-22 11.56 9.31 LU0578942376 -
Class D2 USD None 35.84 -0.05 -0.14 30-Sep-22 42.25 35.84 LU0552552704 -
Class A2 Hedged AUD None 16.08 -0.02 -0.12 30-Sep-22 19.24 16.08 LU0578947334 -
Class D4 Hedged GBP Annual 8.60 -0.01 -0.12 30-Sep-22 10.76 8.60 LU0681219902 -
Class I2 Hedged GBP - 9.25 -0.01 -0.11 30-Sep-22 10.98 9.25 LU2242188931 -
Class A8 Hedged AUD Monthly 7.26 -0.05 -0.68 30-Sep-22 9.14 7.26 LU0871640396 -
Class A4 Hedged GBP Annual 8.64 -0.01 -0.12 30-Sep-22 10.78 8.64 LU0706698544 -
Class I2 Hedged CHF - 8.50 -0.01 -0.12 30-Sep-22 10.19 8.50 LU2344713685 -
Class A3 Hedged NZD Monthly 9.19 -0.05 -0.54 30-Sep-22 11.34 9.19 LU0803752046 -
Class A6 Hedged HKD Monthly 29.86 -0.20 -0.67 30-Sep-22 37.55 29.86 LU0764619531 -
Class A3 USD Monthly 4.96 -0.03 -0.60 30-Sep-22 6.09 4.96 LU0172419151 -
Class D3 Hedged SGD Monthly 8.19 -0.05 -0.61 30-Sep-22 10.10 8.19 LU0827886978 -
Class I3 USD Monthly 8.01 -0.04 -0.50 30-Sep-22 9.83 8.01 LU0764821012 -
Class A8 Hedged CNH Monthly 83.87 -0.72 -0.85 30-Sep-22 105.67 83.87 LU1919856218 -
Class D2 Hedged SGD None 15.01 -0.02 -0.13 30-Sep-22 17.77 15.01 LU0827887273 -
Class I2 USD None 14.60 -0.02 -0.14 30-Sep-22 17.19 14.60 LU0822668108 -
Class A6 Hedged SGD Monthly 7.34 -0.05 -0.68 30-Sep-22 9.21 7.34 LU1314333441 -
Class A8 Hedged ZAR Monthly 72.90 -0.72 -0.98 30-Sep-22 91.11 72.90 LU1023056127 -
Class D3 USD Monthly 8.50 -0.05 -0.58 30-Sep-22 10.44 8.50 LU0592702061 -
Class A3 Hedged SGD Monthly 8.17 -0.04 -0.49 30-Sep-22 10.07 8.17 LU0578937376 -
Class D2 Hedged CHF None 10.31 -0.02 -0.19 30-Sep-22 12.39 10.31 LU1090156289 -
Class SR2 Hedged EUR - 8.60 -0.01 -0.12 30-Sep-22 10.31 8.60 LU2319962572 -
Class SR2 USD - 8.81 -0.01 -0.11 30-Sep-22 10.38 8.81 LU2319962739 -
Class SR4 Hedged GBP Annual 8.14 -0.01 -0.12 30-Sep-22 10.18 8.14 LU2319962655 -
Class A3 Hedged GBP Monthly 7.94 -0.05 -0.63 30-Sep-22 9.85 7.94 LU0580330818 -
Class SR3 USD Monthly 8.23 -0.04 -0.48 30-Sep-22 10.10 8.23 LU2319962812 -

Portfolio Managers

Portfolio Managers

James Keenan
James Keenan
David Delbos
David Delbos
Mitchell Garfin
Mitchell Garfin

Literature

Literature