BlackRock has expanded its multi-asset product offering with the launch of the BlackRock Strategic Growth fund.
UK pension schemes for long-term growth solutions that offer less volatility than equities is increasing and reflects the firm’s focus on strategic asset allocation and commitment to sustainable investing.
Managed by Adam Ryan and BlackRock’s Diversified Strategies team with over a decade of experience, the fund forms part of the firm’s outcome orientated multi asset fund range and aims to achieve long-term growth with two-thirds the volatility of equities. It targets a total return through long-term allocations to bonds, equities and non-traditional assets and diversifiers such as high yield, REITS, infrastructure equities, and gold.
The strategy also integrates ESG considerations into the investment process and the portfolio management team are committed to investing at least 5% of capital into ESG themes such as renewable energy.
Dominic Byrne, multi asset investment strategist at BlackRock, comments: “UK pension funds need capital growth, whether you are a UK trustee looking to assist a DB scheme in their efforts to meet future liabilities or a member of a DC scheme looking to fund spending through retirement. Rather than looking to a single asset class such as global equities to facilitate this growth, multi asset funds that place greater emphasis on staying invested in a range of long-term growth opportunities can help scheme design. Through its innovative strategic asset allocation policy, the new fund seeks to provide this long-term exposure to a range of risk assets with only two-thirds the volatility of equities over an investment cycle.”