BlackRock, Inc has today launched a new Fund which aims to provide a modern outcome-orientated approach to income investing through a globally diversified portfolio. The BlackRock Fund Management (BFM) Global Multi Asset Income fund (‘the Fund’) is constructed to deliver an attractive level of income generation with capital growth within a tight risk framework.
The launch of the Fund follows a successful shareholder vote whereby clients within the BlackRock Balanced Income fund voted in favour of converting to the BlackRock Global Multi Asset Income fund and strategy.
The Fund has a strong focus on risk management and will seek to protect against downside risk. It also benefits from access to BlackRock’s specialist investment teams from all over the world enabling it to target the most attractive income opportunities.
The BFM Global Multi Asset Income fund will invest in more than 8 income-generating asset classes, in over 40 different countries and in excess of 20 different sectors, from property and infrastructure to structured credit and high yield bonds. This approach provides meaningful diversification and potentially higher sources of income.
Jeremy Roberts, Head of UK Retail Sales at BlackRock, said:
“We’ve had strong adviser and client demand for a global multi asset income product that delivers a consistent income. The new UK strategy will target an income between 4 and 6 per cent each year, based on the Luxembourg version of the Fund having delivered an average income of around 5.54* per cent since launch.
“Finding and receiving income from mainstream sources is becoming increasingly difficult. Traditional bonds are being challenged by the perpetual search for yield, we’re seeing historic lows for interest rates on cash and while equities can produce an income, there is more volatility in a single asset class. This Fund really aims to be the best of both worlds.”
The Fund will be co-managed by Michael Fredericks, Justin Christofel and Peter Wilke and combined they run in excess of $15bn in Multi Asset Income Strategies**.
In addition, the BFM Global Multi Asset Income fund will be available through the BlackRock Plan for Income tool in February.
“We know that income planning is becoming increasingly important as a part of life planning since we’re all living longer. Therefore, finding a way to get an income in a consistent format to help plan for life events is crucial,” added Roberts.
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