Blackrock reveals cautious multi-asset fund

Fund has risk level equal to or lower than a 70% bonds and 30% equities benchmark

Blackrock has launched a Global Conservative Income fund for cautious investors seeking an alternative to low yielding investments and a steady income.

The fund aims to deliver income through different market environments by investing in bonds, equities and alternatives such as global Reits, preferred stocks, mortgage-backed securities and equity covered call options.

The asset manager said the portfolio will maintain risk at a level equal to or lower than its 70% bonds and 30% equities risk benchmark.

Michael Fredericks, Justin Christofel and Alex Shingler will manage the fund. The trio are part of Blackrock’s multi-asset income investing team and oversee more than €27bn of assets.

Fredericks, lead portfolio manager of the BGF Global Conservative Income Fund and head of income investing for multi-asset strategies, said: “The balance between risk and reward in today’s investment landscape has left investors in a challenging position.

“Low rates have investors starved for income, yet market uncertainty makes it hard to take on risk. The Blackrock Global Conservative Income Fund seeks to solve this problem by aiming to offer consistent income while closely managing risk.”

In February Blackrock launched a global high-income fund, managed by the same team.

Last month, it unveiled a ‘go-anywhere’ fund that aims to maximise income in the low interest rate environment.

Michael Gruener, head of EMEA retail at Blackrock, said: “The global financial crisis and continued uncertain market environment has given investors reason to be ever-more cautious about where and how they invest for income.

“Investors at the cautious end of the spectrum may, at times, find their options limited in terms of cashflow generating investment vehicles that satisfy their risk appetite.”

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