BlackRock has launched a new fund offering European investors access to a higher yield though a diversified allocation to fixed income and equities.
The BlackRock Strategic Funds (BSF) European Select Strategies fund seeks to combine the diversification liquidity and lack of volatility of a fixed income fund with the benefits of an equity income portfolio.
The starting point of the fund will be 75% European bonds and 25% dividend-paying European equities, with the flexibility to allocate up to 35% to equities.
The fund will be managed by head of euro fixed income Michael Krautzberger (pictured). The Citywire AA-rated manager will work with the European equities team on the fund lead by Citywire + rated Nigel Bolton.
Commenting on the launch Krautzberger said: ‘Traditional bond investors in Europe are faced with the dilemma of accepting less income and lower returns, or taking on more credit risk with lower quality holdings in the hope of achieving a higher income. This fund was designed to address this issue, without forcing investors to compromise on quality.
‘The fund aims to offer the best of Europe in a single investment by allocating capital wisely, which could result in greater portfolio diversification and enhanced returns - an important balance as the search for income continues.’
BlackRock recently launched a new event-driven fund to meet demand for liquid alternative investments from retail and institutional investors.