BlackRock has continued its spree of fund launches with the addition of emerging markets short duration bond fund.
The firm said that by combining short duration bonds and emerging markets, it aims to offer investors with higher yields, while also providing some protection from interest rate increases.
The BlackRock Emerging Markets Short Duration Bond fund invests in a diverse range of short duration bonds across different sectors globally.
The fund will allocate between sovereigns, corporates and local currency bonds with an average duration of no more than three years.
Sergio Trigo Paz, global head of BlackRock's emerging markets fixed income team, will be the lead portfolio manager, supported by Michal Katrencik and Michal Wozniak and BlackRock’s emerging market debt team.
‘Our clients tell us that emerging market exposure has gone from being a nice-to-have to a must-have for the modern portfolio,’ said Trigo Paz.
‘Historically seen as an opportunistic asset class, emerging market debt is increasingly being used by investors as a long-term strategic allocation due to improving fundamentals and strong diversification benefits.’