BlackRock has announced the launch of the BlackRock Global Funds (BGF) Global Bond Income fund, that will be managed by Rick Rieder, chief investment officer of global fixed income, with the support of other mangers from the firm’s $1.9trn (€1.66trn) global fixed income platform.
The fund will be invested across the full global fixed income spectrum, regardless of the asset class, geographies and ratings. This includes high yield and investment grade credit, higher quality corporate bonds, securitised assets and emerging market debt, BlackRock specified.
The US manager said typical duration of the fund will be two years and more with duration ranging from 0 to 10 years for interest risk rate management purposes.
Rick Rieder, portfolio manager of the BGF Global Bond Income fund and CIO Global Fixed Income at BlackRock, commented: “In an environment of low interest rates, investors have to work harder in their search for income. Applying a flexible, go any-where approach to fixed income provides investors with access to a wider and more diverse set of investment opportunities. Without the limitations imposed by a traditional broad-market benchmark, the fund is able to invest across the entire global fixed income opportunity set, including those asset classes, securities and countries that are often hard to reach. ”
Michael Gruener, Head of EMEA Retail at BlackRock, said: “Globally, we are witnessing persistent investor demand for income – and demographic shifts suggest this need will only continue to grow. Through its flexible approach to fixed income investing and focus on higher yielding securities, the BGF Global Bond Income fund helps unlock the income opportunities that we believe investors are looking for.”
BlackRock had $6.3trn (€5.52trn) of AUM as of 30 June 2018.