Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at http://citywire.co.uk/wealth-manager/article/a761732

BlackRock launches global long/short equity fund

by Robert St George on Jul 15, 2014 at 07:10

BlackRock launches global long/short equity fund

BlackRock has launched a new absolute-return fund for its quantitative equity team.

The BlackRock Global Long/Short Equity fund will seek to achieve a positive absolute return regardless of market movements through long and short exposure to developed-market equities, including through synthetic positions.

It targets equity-like returns of 5-7% a year above three-month US Treasuries, after fees, with a volatility target of 7%.

The fund will be co-managed by Kevin Franklin, lead portfolio manager for global strategies within the scientific equities team at BlackRock, and Gearoid Neligan. Their wider team of 80 researchers, quantitative analysts and portfolio managers controls more than £50 billion of assets globally.

The team runs a similar product in the US, which launched in December 2012. Since then it has returned 15.9% compared with 27.3% from the MSCI World index, but with less than half of the volatility and a Sharpe ratio of 2.3.

Its positions include being long Japanese equities after the recent sell-off and going short in European exporters due to the strength of the euro.

The launch is BlackRock’s second in the absolute-return sector over the past month, following that of a multi-asset fund which will allocate across five underlying alpha-seeking strategies spanning equities, fixed income and global macro categories.

'There is an increase in demand from retail clients for absolute-return funds which have the opportunity to deliver consistent returns without exposing investors to the vagaries of the stock market,' said Alex Hoctor-Duncan, head of retail for Emea at BlackRock.

'We believe that over time the BlackRock Global Long/Short Equity fund could be a cornerstone of many portfolios.'

The fund's annual management fee will be 1.8% on its A share class.

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Sponsored Video: Bringing it all back home


As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.

Today's top headlines

Investing for income in a changing environment


With talk on interest rates on the horizon, our latest roundtable debate covers income investing against a changing backdrop

On the road

Click here to find out more from the Audience Development team.

Read more...

How is regulation feeding the outsourcing trend?

on Jul 24, 2014 at 10:59

Sorry, this link is not
quite ready yet