BlackRock has launched a high yield fixed maturity bond fund in response to demand for alternative returns sources and income-focused diversified bond portfolios.
The BSF USD High Yield Fixed Maturity Bond Fund is a fixed term high yield bond strategy with an expected five-year maturity. It aims to deliver regular income while providing improved downside protection and mitigated volatility against the broad US high yield market.
The fund, which will be managed by senior US high yield portfolio manager Mitchell Garfin, invests in US dollar-denominated high yield corporate bonds, with maturities predominately around five years.
Garfin said: “Investors are diversifying the ways in which they access the bond markets. Fixed maturity portfolios are gaining traction as their hybrid structure allows investors to enjoy the diversification benefits of investing in a mutual fund while mitigating the risks of a concentrated portfolio of individual bonds. “
The fund is registered for sale in Austria, Belgium, Switzerland, Germany, Denmark, Spain, France, Ireland, Italy, Luxembourg, Netherlands, Norway, Finland, Sweden, the UK and distributed in Latin America.
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