Available with immediate effect, the BlackRock Strategic Funds European Select Strategies Fund will target openings at the higher-yielding end of the European bonds and equities spectrums.
Utilising a double-pronged investment approach, the fund seeks to maintain the diversification, liquidity and volatility dampening capability of a traditional fixed income vehicle while reaping the benefits of an equity income portfolio.
Managed by BlackRock’s European equities team, led by Michael Krautzberger, head of euro fixed income, the fund will employ a relative value strategy to generate a diversified portfolio of alpha investments.
The initial asset allocation will be split 75% in bonds and 25% to dividend-paying stocks, with the mandate allowing up to 35% exposure to the latter.
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.”