BlackRock has announced the launch of a fixed income fund aiming to invest in global macroeconomic strategies exposed to regions where interest rates are attractive and markets with supportive monetary policy.
The BlackRock Global Funds (BGF) Strategic Global Bond Fund consists of a multi-currency global bond strategy seeking to deliver alpha through macro-driven fixed income opportunities worldwide, including rates and foreign exchange across emerging and developed markets.
Allocations to different securities are evaluated and sized relative to a customised benchmark (80% Barclays Global Aggregate Index (unhedged) and 20% emerging markets exposure).
The BlackRock Global Funds (BGF) Strategic Global Bond Fund is the fifth fund to join the firm’s global bond fund range. Over $40bn (€36.4bn) in assets spread over the five funds.
Scott Thiel, deputy CIO fixed income at BlackRock and one of the five fund’s portfolio managers, said: “The challenges facing global bond investors are greater than ever. Highly accommodative monetary policy has artificially boosted bond markets with yields on higher quality bonds continuing to decline.
“However, 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.”
As of end June 2016, BlackRock managed $4.89trn (€4.45trn) in assets, of which more than $1.4trn (€1.27trn) were invested in fixed income.