BlackRock has launched a global bond fund in response to remand for diverse fixed income exposure amid diverging central bank policies, the company has announced.
The BlackRock Global Funds (BGF) Strategic Global Bond fund will be managed by Scott Thiel, who is deputy CIO of fixed income at BlackRock, as well as Rick Rieder, Bob Miller, Martin Hergaty and Amer Bisat.
The fund will invest in macroeconomic strategies and be exposed to regions where interest rates are attractive and markets have supportive monetary policy. This will include rates and foreign exchange across emerging and developed markets.
The individual allocations are decided according to a customised benchmark, which consists of 80% Barclays Global Aggregate Index (unhedged) and 20% emerging markets exposure. The team will assess portfolio risk across 4,000 unique factors.
This is the fifth fund in the asset manager’s Global Bond fund range, which has over $40 billion in assets. These include the BGF Fixed Income Global Opportunities, BGF World Bond, BGF Global Corporate Bond and BSF Global Absolute Return Bond funds.
Commenting on the launch, Thiel 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.’
The new fund is domiciled in Luxembourg and registered for sale throughout Europe, which includes Austria, Belgium, Germany, France, Italy, Spain, Switzerland and the Netherlands.