Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

BlackRock to hard-close AAA-rated star’s £1.2 billion fund

BlackRock to hard-close AAA-rated star’s £1.2 billion fund

BlackRock has revealed its plans to close its highly performing European credit fund to new money.

The BlackRock European Credit Strategies fund, managed by Citywire AAA-rated Michael Phelps, has returned 16.6% over the past three years, top quintile within its Citywire Bond Strategies sector where the average fund has generated 6.3% through the period.

The fund currently contains €1.5 billion (£1.2 billion), and BlackRock intends to hard-close it at €1.7 billion (£1.4 billion).

BlackRock has also set a €175 million (£140 million) capacity limit on its smaller European Constrained Credit Strategies fund, which holds €138 million (£110 million) and which Phelps co-manages with AAA-rated Alex Shingler.

The closure will not affect the way the portfolios are managed.

‘The funds had received strong levels of subscriptions for over a year and during that time we took preliminary steps (including reducing marketing activities) to control the size of the funds and ensure that each did not exceed its capacity,’ BlackRock stated.

‘From the point the net asset value of each fund reaches the applicable limit, BlackRock will initiate a process so that shares in the relevant fund will not be available for subscription to either new or existing shareholders.’

The group explained that it was taking such steps to ensure that the funds’ assets ‘can be suitably invested and that existing investments can be efficiently managed’.

Phelps is currently increasing his portfolio’s exposure to higher-quality credit, cutting back on his holdings in high yield and subordinated financials, and adding top-down hedges.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Potential US rate rise, cheap oil & the Europe opportunity

Potential US rate rise, cheap oil & the Europe opportunity

This week we analyse the implications of a possible rise in US interest rates, the impact of cheap oil and the European equity opportunity.  

Play Carmignac's Crowl: what QE could mean for Europe

Carmignac's Crowl: what QE could mean for Europe

The ECB is widely expected to finally fire its QE gun this week. Carmignac's Sandra Crowl discusses the implications for the eurozone.

Play Grexit worries, currency wars and a grizzly outlook for 2015?

Grexit worries, currency wars and a grizzly outlook for 2015?

The first Investment Pulse of the year looks at the potential impact of Greece leaving the euro, volatility in currency markets and the UK’s economic prospects.

Your Business: Cover Star Club

Profile: DIY investing is biggest threat to industry, says Whitechurch

Profile: DIY investing is biggest threat to industry, says Whitechurch

The industry is at risk of pushing potential investors down the DIY route unless it does more to make its services accessible says the Whitechurch Securities boss

Wealth Manager on Twitter