BlackRock set for US income trust launch

BlackRock is set to launch a US-focused income trust, Wealth Manager understands.

Hot on the heels of a similar launch by F&C Asset Management, BlackRock is keen to expand its income range and is in the early stages of planning a US large cap-focused trust.

It is understood the asset manager is about to start test marketing for the new closed-end fund, canvassing demand among prospective IFA and wealth manager clients. 

Although no-one from BlackRock could comment, a source close to the launch told Wealth Manager to expect two of its US-based institutional fund managers, Bob Shearer and Kathleen Anderson, to run the vehicle. Both have managed US equity money since 1997 and together run $36 billion (£23 pillion), including the $22 billion BlackRock Equity Dividend fund.

If the launch goes ahead, the new vehicle is expected to offer an initial 4.25% yield net of fees.

Despite the US being one of the few developed markets where the economic recovery has gained traction in recent months, there are few direct offerings focused on the American market in the investment trust universe. 

JP Morgan American, managed by Garrett Fish, is one of the few, while Edinburgh US Tracker also fits into the US sector. This vehicle forms part of Aberdeen Asset Management’s closed-end fund franchise and its shareholders recently approved a switch away from passive investing, with the vehicle being rebranded as the North American Income Trust.

More recently, Edward Bramson’s F&C Asset Management entered the market after announcing a push to launch more products in its strategic review. 

F&C will partner with Barrow Hanley Mewhinney & Strauss LLC to create a UK investment trust investing in US large caps.