BlackRock has closed its emerging markets investment grade bond strategy just shy of the fund’s three year anniversary after failing to accrue enough assets to make it viable.
The BGF Emerging Markets Investment Grade Bond fund, which was Luxembourg-domiciled, was formally closed on December 21.
It had been managed by Sergio Trigo Paz, head of emerging markets, since its launch. He was joined by Michal Wozniak and Laurent Develay in April 2014, who replaced Raphael Marechal and Christopher Kelly.
In a statement to Citywire Selector, a spokesperson for BlackRock said: ‘Since its inception, the fund has developed differently than expected, and the board expects no improvements in the near future. At this volume, it is no longer economical or possible to operate.’
The possibility of closing the fund was first floated in October, at which time assets under management had fallen to €35 million. No subscriptions were allowed into the fund following the October discussions.
The BGF Emerging Markets Inv Grade Bd fund lost 13.4% in US dollar terms over the 12 months to the end of November 2015. Its Citywire-assigned benchmark, the JP Morgan EMBI Global Diversified TR, rose 0.2% over the same period.