BlackRock has launched a Global Conservative Income fund for cautious investors, expanding its range of multi-asset income products.
The fund aims to deliver a reliable income through the maket cycle by investing in bonds, equities and alternatives such as global REITs, mortgage-backed securities and equity covered call options.
It is managed by Michael Fredericks, Justin Christofel and Alex Shingler who sit in the firm's €27bn multi-asset income investing team.
With a focus on risk management, it is aimed at cautious investors who are seeking an alternative to low-yielding investments and a steady stream of income.
In light of this, BlackRock has said the fund aims to maintain risk at a level equal to or lower than its 70% bonds and 30% equities risk benchmark.
The move follows an earlier launch in February of a high income multi-asset fund for the same team.
Fredericks, lead portfolio manager and head of income investing for multi-asset strategies, said: "The balance between risk and reward in today's investment landscape has left investors in a challenging position. Low rates have investors starved for income, yet market uncertainty makes it hard to take on risk.
"The BlackRock Global Conservative Income fund seeks to solve this problem by aiming to offer consistent income while closely managing risk."
Michael Gruener, head of EMEA retail at BlackRock, added: "The global financial crisis and continued uncertain market environment has given investors reason to be ever-more cautious about where and how they invest for income.
"Investors at the cautious end of the spectrum may, at times, find their options limited in terms of cashflow-generating investment vehicles that satisfy their risk appetite.
"Taking a conservative approach with risk management at its centre, the BlackRock Global Conservative Income fund is designed to generate a regular income stream for investors through multiple market environments."
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