BlackRock has broadened its fixed income range with the launch of an unconstrained global fund targeting a 5% yield.
The Global Bond Income fund, which will sit in the group’s offshore BlackRock Global Funds (BGF) product suite, will be managed by global fixed income chief investment officer Rick Rieder (pictured).
It will have the flexibility to invest across sovereign, corporate, high yield and emerging market debt, alongside securitised assets. The fund has a broad duration flexibility of 0-10 years, but will launch at just over two years.
The fund will levy a 0.5% annual management charge, with an estimated ongoing charges figure of 0.74%.
Rieder said: ‘In an environment of low interest rates, investors have to work harder in their search for income. Applying a flexible, go anywhere approach to fixed income provides investors with access to a wider and more diverse set of investment opportunities.
'Without the limitations imposed by a traditional broad-market benchmark, the Fund is able to invest across the entire global fixed income opportunity set, including those asset classes, securities and countries that are often hard to reach.’
Head of EMEA retail Michael Gruener added: ‘Globally, we are witnessing persistent investor demand for income - and demographic shifts suggest this need will only continue to grow.
'Through its flexible approach to fixed income investing and focus on higher yielding securities, the BGF Global Bond Income fund helps unlock the income opportunities that we believe investors are looking for.’