BGF Emerging Markets Bond Fund

Blackrock

Invest in bonds from the Emerging Countries…


Investment Policy

BGF Emerging Markets Bond Fund is a sub-fund of the SICAV/BEVEK investment fund under Luxembourg law BlackRock Global Funds (BGF). The Fund aims to maximise the return on your investment through a combination of capital growth and income on the Fund’s assets. The Fund invests at least 70% of its total assets in fixed income securities. These include bonds and money market instruments (i.e. debt securities with short term maturities). The fixed income securities may be issued by governments and government agencies of, and companies and supranationals (e.g. the Asian Development Bank) domiciled in, or the main business of which is in, emerging markets. The Fund will invest in the full range of fixed income securities which may include investments with a relatively low credit rating or which are unrated. For the purpose of managing currency exposure, the investment adviser (IA) may use investment techniques (which may include the use of financial derivative instruments (FDIs)) to protect the value of the Fund, in whole or part, or enable the Fund to profit from changes in currency exchange rates against the base currency of the Fund. FDIs are investments the prices of which are based on one or more underlying assets. The IA may use FDIs to reduce risk within the Fund’s portfolio, reduce investment costs and generate additional income. The Fund may, via FDIs, generate varying amounts of market leverage (i.e. where the Fund gains market exposure in excess of the value of its assets). The IA has discretion to select the Fund's investments and in doing so may take into consideration the JP Morgan Emerging Markets Bond Index Global Diversified Index. Recommendation: This Fund may not be appropriate for short-term investment. The Fund’s base currency is US Dollar. Shares for this class are bought and sold in Euro. The performance of your shares may be affected by this currency difference. You can buy and sell your shares daily.

Before you invest in BGF Emerging Markets Bond Fund, your are advised to read carefully the following documents:

These documents are available for free in your ING-branch or on this website. These documents are available in English, Dutch or French.

The fund BGF Emerging markets Bond Fund is not an ING fund.

Historical records – Actuarial Yield – Capitalization share

Source : Morningstar Direct ™

Actuarial gain expressed on an annual basis in the currency of the relevant UCITS over 1 year, 3 years, 5 years,10 years and since inception. It relates to end-of-month returns based on historical data. The returns shown are valid for the capitalised parts of the UCITS and take no account of entry fees and potential taxes. Past performance is no guarantee of future performance and can be misleading. The value of shares in the fund and income received from it can go down as well as up, and investors may not get back the full amount invested. All performance data shown is in euro, include reinvested dividends and are net of management fees. Sales charges and other commissions, taxes and other relevant costs paid by the investor are not included in the calculations.

Fund launch date: 1/10/2004

Class Launch date: 1/10/2004

Reference currency: The reference currency is the Euro.

For an investor seeking:

  • Expanding the search for yield into emerging markets sovereign debt, diversify their fixed income portfolio and maximise their returns. It may also suit those investors looking to reduce the currency risks of their EMD portfolio.

But…

The main risks for the Sub-Fund are :

  • Geographic Risk : Emerging markets are generally more sensitive to economic and political conditions than developed markets. Other factors include greater 'Liquidity Risk', restrictions on investment or transfer of assets and failed/delayed delivery of securities or payments to the Fund.
  • 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.
  • Derivatives: Derivatives are 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.
  • Counterparty Risk: The insolvency of any institutions providing services such as safekeeping of assets or acting as counterparty to derivatives or other instruments, may expose the Fund to financial loss.
  • Credit Risk: The issuer of a financial asset held within the Fund may not pay income or repay capital to the Fund when due.
  • Liquidity Risk: Lower liquidity means there are insufficient buyers or sellers to allow the Fund to sell or buy investments readily.

The occurrence of any of these risks may have an impact on the net asset value of your portfolio.

Net Asset Value

The net asset value is calculated in Belgium each bank working day. The net asset value is published every public banking business day in Belgium in the financial press, as well as on the BeAMA website (http://www.beama.be/en/nav). It is also available at the Management Company’s registered address and over the counter from your financial services provider.

A swing price may be applied. Swing pricing aims to reduce the dilution effect brought about when significant operations within a sub- fund compel its manager to buy or sell its underlying assets. These transactions give rise to transaction fees and taxes that have an effect on the fund’s value, as well as on all its investors. Where swing pricing is applied, the sub-fund’s net asset value is adjusted by a particular amount when the capital flow exceeds a certain threshold (the swing factor). This amount is designed to offset expected transaction fees resulting from the difference between incoming and outgoing capital. Swing pricing is only used on rare occasions, if at all.

Please refer to the BGF Emerging Markets Bond Fund prospectus (PDF) for additional information.

Minimum investment: 1 part

Term: undefined

One-off charges

  • Entry charge (applicable by ING Belgium): 3%
  • Exit charge: 0%

Ongoing charges

Ongoing charges taken from the Sub-Fund over a year: 1.47% of which (maximum) 1,20 % of management fees.

Custody fee: 0%/ annum

For other charges that might be paid by the investor, we refer to the prospectus.

Taxation

  • Stock exchange tax (applicable to redemptions only):
    • Capitalization share: 1,32% (max 4000 EUR)
    • Distribution share: none
  • Withholding tax on dividends:
    • Capitalization share: none
    • Distribution share: 30%
  • Withholding tax in case of redemption:
    • Sub-fund permitted to invest more than 25% of assets in debt securities: yes
    • Sub-fund actually more than 25% invested in debt securities: yes
    • Withholding tax (30 % depending on the investor’s particular tax situation): applicable

*Tax treaty based on the current legislation
Dividends received from distributing shares are subject to the Belgian withholding tax of  30%. The Belgian withholding tax applicable to interests included in the repurchase price of accumulating and distributing shares investing more than 25% of their assets in any kind of debts amounts to 30%.

This tax system applies to Retail customers – private individuals resident in Belgium. Taxation depends on the individual situation of each customer and may change in the future.

Identity of de financial agent

Financial Service Belgium : J.P. Morgan Chase Bank, Boulevard du Roi Albert II 1, B-1210 Bruxelles

Complaints Service

Complaints can be lodged with ING – Customer Service – Cours Saint Michel, 60 – 1040 Brussels. If no settlement can be reached in this way, please contact the Banks - Credit - Investments Mediation Service (www.ombudsfin.be).

Are you interested ?

Make an appointment now at the ING branch of your choice.

For more information, read the following documents:

Are you interested ?

Make an appointment now at the ING branch of your choice.