Targeting pension schemes, BlackRock has launched a new multi-asset strategy with a dynamic and unconstrained approach to asset allocation.
Adam Ryan, head of the diversified strategies team at BlackRock, and his team can invest across a range of asset classes.
Their investment universe comprises not only equities and fixed income, but also alternative investments, such as volatility strategies and commodities – through exchange-traded funds or approved derivatives – and cash.
The strategy aims to provide attractive returns equivalent to the rate of return on cash (Libor) plus 6%.
Arno Kitts, head of BlackRock’s UK institutional business, says diversified strategies have for some time been attractive to UK pension funds concerned with volatility and economic uncertainty. Such diversified strategies, Kitts adds, provide more consistency than an equities or traditional balanced equity/bond portfolio.
BlackRock manages over $150 billion (€110.7 billion) in its multi-asset business.
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