BlackRock has launched its first single-manager multi-strategy liquid alternatives UCITS fund with daily liquidity in Europe.
The Systematic Multi-Strategy ESG Screened fund is designed to generate more balanced and consistent returns across market cycles for investors who are seeking equity diversification but want more than the low yields currently offered by more traditional bonds.
"The ongoing macro environment of low yields and rising inflation has forced investors to re-think the role of fixed income across portfolios as the return and diversification benefits have become more challenged," said Jeff Rosenberg, senior portfolio manager of the fund.
"This fund can be a solution for investors to tackle these macro and portfolio construction headwinds as it helps to add alternative sources of portfolio diversification and resilience," he added.
The fund aims to provide a total return in the form of capital and income through three uncorrelated and complementary strategies. These strategies include directional asset allocation, which seeks market upside participation by investing in a diversified portfolio of income generating assets; macro, offering incremental return by maximising opportunities across global interest rate markets and defensive long/short equity, which drives defensive returns by applying credit expertise to equity selection.
The newly launched fund is categorised as Article 8 under the European Union's Sustainable Finance Disclosure Regulation (SFDR), in line with BlackRock's expectation that 70% of its fund launches and repositionings in Europe this year qualify for Article 8 or 9.
The introduction of the fund in Europe builds off the launch and six-year track record of the US sister strategy and is managed by the $82bn Systematic Fixed Income business. The business is part of BlackRock's Systematic Investment group, which has $257bn in AUM across alpha-seeking and factor-based investments, and more than 35 years' experience of investing systematically in equities, fixed income, multi-asset, and alternatives.