A total return product, the BlackRock Sterling Strategic Bond Fund can invest across global fixed income markets, but will maintain a UK bias.
“This is a fund aimed at UK investors and is a natural extension of the philosophy and process that has worked well within the corporate bond fund,” said Jeremy Roberts, head of UK retail sales at BlackRock.
“If you think of the corporate bond fund as a core holding, we feel that this strategic bond fund is a one stop shop,” he added.
Pointing out that the go-anywhere nature of the fund should be attractive to investors in a low-return, low-rate world, where income remains golden but wherein it is increasingly hard to find.
No lack of choice
Co-manager, Edwards who joined the firm in 2010 and, who took over as sole manager of the BlackRock Corporate Bond Fund in June 2015, following Blundell’s promotion to the position of head of sterling bond portfolios within BlackRock Fundamental Fixed Income said of the launch: “While investors are not suffering from a lack of choice in this sector, we believe clients will benefit from the same outcome driven style and disciplined risk management that have underlined our successful Corporate Bond Fund over the last 10 years.”
According to the firm, the fund will focus on three areas: high quality sterling and overseas corporate bonds from where it will look to generate income; High conviction alpha extracted from both global credit and macro markets; and, finally, efficient allocation to broad fixed income sectors including global high yield and emerging markets.
At launch the fund will have roughly 70% invested in the first ‘bucket’ and 15% each in the other two. And, while not set in stone, the weightings are a good indication of how the managers will approach their task.