Fixed Income

BGF US Government Mortgage 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 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 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

  • Returns

  From
31-Mar-2015
To
31-Mar-2016
From
31-Mar-2016
To
31-Mar-2017
From
31-Mar-2017
To
31-Mar-2018
From
31-Mar-2018
To
31-Mar-2019
From
31-Mar-2019
To
31-Mar-2020
Total Return (%) Total return represents changes to the NAV and accounts for distributions from the fund.

as of 31-Mar-20

1.24 -0.48 -0.27 3.28 6.93
Benchmark (%) Index: FTSE Mortgage Index<br /><br /> Index returns are for illustrative purposes only. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results.

as of 31-Mar-20

2.38 0.06 0.77 4.48 7.83

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

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Performance chart data not available for display.
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Reinvestments

Record Date Ex-Date Payable Date
View full table

Key Facts

Key Facts

Size of Fund (Millions) as of 29-May-20 USD 146.985
Base Currency U.S. Dollar
Fund Launch Date 02-Aug-85
Share Class launch date 02-Aug-85
Asset Class Fixed Income
Morningstar Category USD Government Bond
Benchmark Index FTSE Mortgage Index
Domicile Luxembourg
Regulatory Structure UCITS
Management Company BlackRock (Luxembourg) S.A.
ISIN LU0096258446
Bloomberg Ticker ME2LU LX
Initial Charge 5.00%
Performance Fee 0.00%
SEDOL 5800562
Bloomberg Benchmark Ticker SBMT
Dealing Settlement Trade Date + 3 days
Dealing Frequency Daily, forward pricing basis
Minimum Initial Investment USD 5000
Minimum Subsequent Investment USD 1000
Use of Income Accumulating

Portfolio Characteristics

Portfolio Characteristics

Modified Duration as of 30-Apr-20 3.38
3y Volatility - Benchmark as of 30-Apr-20 2.32
5y Volatility - Benchmark as of 30-Apr-20 2.21
5y Beta as of 30-Apr-20 0.918

Sustainability Characteristics

Sustainability Characteristics

To be included in MSCI ESG Fund Ratings, 65% of the fund’s underlying holdings (excluding cash positions) must be covered by MSCI ESG Research, 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.


Transparency on Business Involvement metrics is not indicative of a fund’s investment objective, and, unless otherwise stated in Fund documentation and included within a Fund’s investment objective, ESG integration does not change a Fund’s investment objective or constrain the Investment Manager’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.


Business Involvement metrics are calculated using MSCI ESG Research which provides a profile of each company’s specific business involvement. BlackRock leverages this research 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.

Risk Indicator

Risk Indicator

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Low Risk High Risk
Typically low rewards Typically high rewards

Ratings

Ratings

Morningstar Rating

Overall Morningstar Rating for BGF US Government Mortgage Fund, Class A2, as of 31-May-20 rated against 160 USD Government Bond Funds.

Holdings

Holdings

as of 30-Apr-20
Name Weight (%)
GNMA2 30YR TBA(REG C) 24.23
UMBS 30YR TBA(REG A) 21.58
FNMA 30YR 2020 PRODUCTION 10.58
FHLMC 30YR UMBS SUPER 5.83
FNMA 30YR 2017 PRODUCTION 2.79
Name Weight (%)
FNMA 30YR 4% SHLB 175K 2019 2.62
GNMA2 30YR 2015 PRODUCTION 2.52
GNMA2 30YR 2019 PRODUCTION 2.45
FHLMC 20YR UMBS 2.22
FGOLD 30YR 4% HLB 150K 2011 1.66
Holdings subject to change

Exposure Breakdowns

Exposure Breakdowns

as of 30-Apr-20

% of Market Value

Type Fund Benchmark Net
as of 30-Apr-20

% of Market Value

Type Fund Benchmark Net
as of 30-Apr-20

% of Market Value

Type Fund Benchmark Net
Allocations subject to change.
as of 30-Apr-20

% of Market Value

Type Fund Benchmark Net
as of 30-Apr-20

% of Market Value

Type Fund Benchmark Net
as of 30-Apr-20

% 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 A2 USD None 20.69 -0.01 -0.05 20.71 19.27 - LU0096258446 - -
Class I2 USD - 10.68 -0.01 -0.09 10.69 10.00 - LU2011139206 - -
Class D2 USD None 21.48 -0.02 -0.09 21.50 19.94 - LU0424777026 - -
Class A3 USD Monthly 9.44 -0.03 -0.32 9.47 8.98 - LU0172418690 - -
Class D3 USD Monthly 9.46 -0.03 -0.32 9.49 9.00 - LU0592702145 - -
Class I3 USD Monthly 9.64 -0.03 -0.31 9.67 9.17 - LU1456639035 - -
Class A1 USD Daily 9.44 -0.01 -0.11 9.47 8.97 - LU0035308682 - -

Portfolio Managers

Portfolio Managers

Akiva Dickstein
Akiva Dickstein
Matthew Kraeger
Matthew Kraeger
Bob Miller
Bob Miller

Literature

Literature