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BlackRock launches short duration EM fund

Emerging_marketsBlackRock has launched an emerging markets short duration bond fund, saying that investors were seeking asset classes with a higher return potential but aiming to mitigate interest-rate risk.

The BlackRock Emerging Markets Short Duration Bond Fund combines short duration bonds and emerging markets to provide investors with higher yields, while helping to provide some downside protection from steady interest rate increases, the firm said.

The fund can allocate between sovereigns, corporates and local currency bonds with an average duration of no more than three years.

Sergio Trigo Paz will be the lead portfolio manager, with Michal Katrencik and Michal Wozniak as co-managers.

Paz said: “Our clients tell us that emerging market exposure have gone from being a nice-to-have to a must-have for the modern portfolio. Historically seen as an opportunistic asset class, emerging market debt is increasingly being used by investors as a long-term strategic allocation due to improving fundamentals and strong diversification benefits.”

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