Blackrock has launched a go-anywhere fund that aims to maximise income in the low interest rate environment.
Rick Rieder, chief investment officer of fixed income, will manage the Global Funds (BGF) Global Bond Income fund alongside Blackrock’s senior fixed income managers. It is seeded with $75m (£58.8m).
The fund will invest across the global fixed income universe, including difficult to access asset classes, countries and securities, including securitised assets and emerging market debt. Duration on the fund will initially sit just above 2 years, but will range between zero and 10 years in line with the interest rate risk management.
Rieder said: “In an environment of low interest rates, investors have to work harder in their search for income. Applying a flexible, go any-where approach to fixed income provides investors with access to a wider and more diverse set of investment opportunities.
“Without the limitations imposed by a traditional broad-market benchmark, the fund is able to invest across the entire global fixed income opportunity set, including those asset classes, securities and countries that are often hard to reach.”
Demographic shifts mean demand for income will persist, said Michael Gruener, head of EMEA retail at Blackrock.
“Through its flexible approach to fixed income investing and focus on higher yielding securities, the BGF Global Bond Income Fund helps unlock the income opportunities that we believe investors are looking for.”
The fund is domiciled in Luxembourg and available to investors in Europe and Asia. The Oeic will have a management fee of 0.5% and estimated on-going charges figure (OCF) of 0.74%.
