BlackRock has launched the BlackRock Dynamic Allocation fund to help defined contribution schemes construct default solutions that comply with the new regulations around charge caps.
The fund invests in a range of asset classes including (but not limited to) developed market equities, commodities, emerging market debt and corporate bonds, using low-cost exposures as building blocks within its dynamic asset allocation strategy.
It is based on the BlackRock Dynamic Diversified Growth fund launched in 2001, both of which are managed by Adam Ryan, supported by the diversified strategies team which manages £18bn AUM globally.
The fund aims to deliver a total return over the medium to long-term, with less volatility than a standalone investment in equities.
It looks to adapt to changing market conditions, using its broad capabilities to access BlackRock’s multi-asset, index and risk management platform. By employing various protection strategies, such as equity market hedging, and also provides a strong focus on capital preservation.
Tony Stenning, Savings and Pensions Expert at BlackRock, said: “The retirement landscape is changing and new freedoms and a greater focus on cost brings new challenges. DC members need innovative investment strategies to help them plan and live comfortably in their later years. They also need a solution designed to navigate today’s ever-changing markets that can help them achieve the outcome they desire while managing risk.
“The BlackRock Dynamic Allocation Fund is designed for this purpose. It is a low-cost, actively-managed multi-asset fund that aims to grow individuals’ hard-earned nest eggs, while taking out some of the investment volatility and therefore delivering a smoother journey.”
BlackRock is a leading provider of retirement solutions in the UK, offering both scheme administration and investment options for workplace pension schemes and scheme members.