BlackRock has launched an absolute return multi-asset fund that will focus on factor investing.
The Strategic Funds Style Advantage fund will be managed by chief investment officer Ked Hogan and his factor-based strategies group at BlackRock.
The new fund aims to combine return drivers such as value, momentum, quality and volatility with a long-short portfolio of more than 2,500 securities across equities, fixed income, commodities and currencies.
BlackRock head of EMEA retail Alex Hoctor-Duncan says: “In a volatile world where there are valuation headwinds for both equities and fixed income, investors need new, consistent sources of positive absolute return.
“This fund could be an effective diversifier for investors with different target outcomes, including asset allocators looking to build versatile portfolios for their clients.”
As of January, BlackRock manages $125bn (£88bn) in factor-based and smart beta strategies across the traditional asset classes.
Hogan says: “The return potential of style strategies has been supported by academic research and investment practice, and, at BlackRock, style investing has been an important driver for our clients’ equity and fixed income portfolios for years.
“This fund reflects our firm’s best thinking in this area, applying insights across a wide range of liquid asset classes in the pursuit of consistent absolute returns.”
Charges for the fund are 0.9 per cent.