US asset manager BlackRock has teamed up with the Brazilian insurance company Icatu Seguros to launch Icatu Seg Global Equity Income 10 Fim Previdenciario, a pension fund with a global equity exposure.
BlackRock will manage 10% of the fund invested in global stocks, by focusing on quality stocks with robust dividends and sustainable growth. The remaining 90%, managed by Icatu Seguros, will be invested in short-term inflation securities – aimed at protecting the long-term investor’s purchasing power.
The fund seeks an annual return of $100m (€84.98m) in the first year. Either a minimum amount of $500 (€424.90) per month or a single contribution of $10,000 (€8,497) is required to invest in the scheme.
Icatu Seguros’ head of Pension Funds Felipe Bottino, commented: “The fund forms a diversification option in the investor’s portfolio in the current low interest rate environment. Although the percentage of application is still small, the results of our simulations highlight that this portion only already adds a differential in the long-term results.
BlackRock’s country head Brazil Rodrigo Araújo, said: “Individuals have to deal with the challenge of reconciling the retirement acquired during their work periods with the new reality of increasing life expectancy. Moreover, given the different economic cycles long-term savers face while gathering assets, new investment options are being created to assist them in achieving their long-term goal.”