BlackRock is issuing a warning to bondholders about the ongoing risk of Brexit within investors’ portfolios.
The world’s largest asset manager will start highlighting warnings about Brexit and the associated market volatility in prospectuses for funds with “significant exposure to Europe” this month, according to the Financial Times.
Many US bond funds have substantial exposure to European companies, which could be hit by the fallout from Brexit. BlackRock’s $19bn high yield fund has a 12.2 per cent exposure to western Europe, up from 6.8 per cent in 2010, according to Bloomberg data.
A BlackRock spokesperson told the FT: “The Brexit vote was a major geopolitical event and we revise our risk disclosure periodically to account for events in the US and abroad that could create risk for a fund’s portfolio.”