The Emerging Market Allocation fund, part of BlackRock’s Strategic Funds range, is constructed to deliver equity-like returns but without the volatility commonly associated with emerging markets.
Expanded choice
Through the fund, investors are able to invest in any asset class across traditional emerging and frontier markets. They are also able to look beyond traditional stocks and bonds, and include alternative strategies such as going long/short in the fund’s portfolio. The weighting of each component is optimised for a long-term smooth ride but can vary tactically according to market conditions.
Commenting on the fund, head of retail for Europe, Middle East and Africa, Alex Hoctor-Duncan, said: “Emerging markets typically experience greater volatility relative to developed markets, like we have seen in recent weeks. History has shown however, that having the conviction to stay the course throughout volatile periods can have a meaningful impact for investors.”
Lead manager of the fund is Jeff Shen, head of emerging markets, who is supported by portfolio managers Seanna Kim and Rodolfo Martell.
BlackRock believes that the fund will be attractive to investors because it can move swiftly to seize the best opportunities for growth, but also reduce risk at times of market stress, meaning investors enjoy a smoother ride.
“The diversity and depth of emerging market territories is growing, and risk levels and opportunities are constantly changing. It is becoming harder to talk about emerging markets as a group, with increasing country differentiation making it important to monitor countries on a fundamental basis,” said Shen.
This is a continuation in BlackRock growing its emerging market investment capabilities. It launched two new emerging market debt funds, both of which are classed under the BlackRock Global Funds range, in February 2013.
A few months prior, in November 2012, the firm had unveiled its Emerging Markets Absolute Return fund, one of BlackRock’s Strategic Funds.
