BlackRock has launched the BlackRock Strategic Funds European Select Strategies Fund.
It is aimed at European investors to provide an alternative to traditional fixed income and seeks to deliver a higher yield through a diversified allocation to European fixed income and equities.
The fund is managed by Michael Krautzberger, head of Euro Fixed Income, supported by the European equities team led by Nigel Bolton.
The team will aim to produce consistent outperformance through diversified alpha sources and a relative value approach.
The portfolio will originally be invested at 75% in European bonds and 25% in high quality dividend-paying European equities, with the flexibility to allocate up to 35% to equities.
Krautzberger commented: “Traditional bond investors in Europe are faced with the dilemma of accepting less income and lower returns, or taking on more credit risk with lower quality holdings in the hope of achieving a higher income. This fund was designed to address this issue, without forcing investors to compromise on quality.”