The firm said that rising interest rates meant the combination of short duration bonds and emerging markets is a way to provide investors with higher yields.
The Blackrock Emerging Markets Short Duration Bond Fund invests in a range of short duration bonds across different sectors globally. It has the flexibility to allocate between sovereigns, corporates and local currency bonds, with an average duration of no more than three years.
Sergio Trigo Paz will be the lead portfolio manager, and will be supported by Michal Katrencik and Michal Wozniak as co-managers. They will work alongside Blackrock’s emerging market debt team.
Trigo Paz, global head of Blackrock’s emerging markets fixed income team, said: “Our clients tell us that emerging market exposure have gone from being a nice-to-have to a must-have for the modern portfolio.
“Historically seen as an opportunistic asset class, emerging market debt is increasingly being used by investors as a long term strategic allocation due to improving fundamentals and strong diversification benefits. This fund is a great addition to the range we have built, to help investors achieve greater income potential and diversification from a higher-yielding asset class.”
The news comes as Blackrock launched an absolute return fund last Friday and an ETF fund in November.
