BlackRock has launched a multi-currency strategic global bond fund, which seeks opportunities in markets with supportive monetary policy and attractive interest rates.
The BlackRock Global Funds Strategic Global Bond fund is set against a customised benchmark, which consists of 80 per cent Barclays Global Aggregate Index (unhedged) and 20 per cent emerging markets exposure.
Fund co-manager, Scott Thiel, who is deputy CIO for fixed income at BlackRock, says: “Highly accommodative monetary policy has artificially boosted bond markets with yields on higher quality bonds continuing to decline.”
Thiel says while the challenges facing global bond investors are “greater than ever” there are opportunities for active managers to “identify sources of added value by capitalising on global opportunities and macroeconomic trends”.
“We hear from many investors that they want global macro, liquid strategies that can take advantage of the divergence in performance across different markets. We’ve launched this fund in response to this demand.”
The five-strong portfolio management team will assess portfolio risk across 4,000 unique risk factors.
The annual management fee for the fund’s D share class is 0.5 per cent and the ongoing charge fee is 0.7 per cent.
BlackRock’s Global Bond fund range already has over $40bn in assets and includes the BGF Fixed Income Global Opportunities fund, BGF World Bond Fund, BGF Global Corporate Bond and BSF Global Absolute Return Bond Fund.