BlackRock expands EM debt funds range

BlackRock has launched two new Emerging Market Debt funds for European investors, following last year’s appointment of a seven-strong Emerging Market debt team, and reflect the firm’s increased commitment to helping investors capture opportunities within the region and asset class.

BGF Emerging Market Corporate Bond fund, co-managed by Trigo-Paz, Chris Kelly and Jane Yu, will offer a focused portfolio where at least 70% of total assets are invested in US dollar-denominated global emerging market corporate debt, including quasi-sovereign, high grade corporates and high yield corporates. The fund is targeted at investors looking to participate in the on-going growth of the EM (emerging market) economies and corporate markets, and benefit from the high income that EM corporate bonds offer versus other credit markets.

BGF Emerging Market Investment-Grade Bond fund, co-managed by Trigo-Paz, Chris Kelly and Raphael Marechal, will invest at least 70% of total assets in investment-grade fixed income securities with a minimum rating of BBB- / Baa3 issued by or in emerging countries. In addition to maximising total return, the fund will look to exceed its benchmark by approximately 175 basis points before fees. The fund is targeted at investors looking to benefit from growth opportunities and income in a diversified fashion while limiting the headline risk that high yield markets entail.  It is a comprehensive fund that will invest across local debt, currencies, hard currency sovereign debt and corporate debt.

Alex Hoctor-Duncan, head of Europe, Middle East and Africa retail at BlackRock said: “With investors facing continued low yields from traditional fixed income sources, EMD should in our view be considered as part of a diversified portfolio. Historically considered by many to be a volatile asset class, EMD has experienced markedly improved creditworthiness creating a compelling income opportunity for investors and we are pleased to be in position to offer exposure in the main EMD segments.” 

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