BlackRock to launch Americas absolute return fund

BlackRock is to launch an absolute return equity fund able to invest across both North and South America later this quarter.

Co-managed by Raffaele Savi and Travis Cooke, members of BlackRock's scientific active equity team, the BlackRock Americas Diversified Equity Absolute Return fund will take long and short positions across a universe of between 2,000 and 3,000 stocks.

At least 70% of the fund's investment exposure will be via equities and equity-related securities, giving exposure to companies listed in the US.

All stocks in the investable universe are ‘scored' on a daily basis in order to assess to what degree they possess outperforming characteristics. Scores from each individual stock selection signal are aggregated and represent the team's return forecasts for each stock.

The fund, which will sit within the company's offshore BlackRock Strategic Funds range, is set to launch at the end of Q1 2012, subject to FSA approval.

"Designed for investors seeking consistent absolute returns from a portfolio of long and synthetic short equity exposures in the Americas, the fund will offer reduced volatility and a lower correlation to other asset classes than that of traditional long-only equity funds," said Alex Hoctor-Duncan, BlackRock head of retail sales, EMEA.