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 unveils absolute return emerging markets fund

BlackRock unveils absolute return emerging markets fund

BlackRock has broadened its emerging market range with the launch of an absolute return fund for Sam Vecht and Henry Wigan.

The BSF Emerging Markets Absolute Return fund is being targeted at UK discretionary managers. It aims to deliver a positive absolute return regardless of market conditions by investing in a portfolio of long and short equity positions.

The holdings will either be domiciled in emerging markets or derive the bulk of their earnings there. 

According to the fund’s prospectus, the managers will blend proprietary macroeconomic research with bottom-up company analysis to narrow the universe of stocks down to a basket of up to 70 ‘best ideas’ for the portfolio.

Vecht (pictured), who has been at BlackRock for 13 years, already runs the BGF Emerging Europe and Frontiers funds, and heads the emerging markets specialist team. He has outperformed his typical emerging Europe and Russia peer over three years, delivering 4.7% versus the average manager’s -0.2% return.

Wigan, a macro strategy specialist, joined BlackRock three years ago from 3G Capital and focuses on investments in emerging Europe and Latin America.

Alex Hoctor-Duncan, head of EMEA retail at BlackRock, said the new launch has been designed for investors keen to access emerging markets while keeping volatility down.

He said: ‘The BSF Emerging Markets Absolute Return fund is designed for investors seeking positive absolute returns irrespective of market conditions. This is achieved through a portfolio of long and short emerging market equity exposures, while delivering low volatility.' 

Hoctor-Duncan added: ‘BlackRock’s emerging markets specialist team has a strong track record in this area and we are pleased to be able to offer our clients the opportunity to access these strategies in a Ucits structure.’

The asset manager's latest launch will have a euro and a US dollar share class.  As well as the UK it will be available in Finland, France, Germany, Italy, Luxembourg and Sweden.

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 JPM’s Negyal: Back divis to temper EM volatility

JPM’s Negyal: Back divis to temper EM volatility

Omar Negyal, co-manager of the JPMorgan Global Emerging Markets Income trust, says a dividend approach to emerging markets reduces the volatility of investing in the asset class.

Play WMR: Why Russia will lose this war

WMR: Why Russia will lose this war

Author and journalist Adam Lebor believes a perfect storm is brewing when it comes to the Russian economy. .

Play WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

Chief economic adviser to London mayor Boris Johnson outlines the geo-political risks in Asia and explains why the risk of another eurozone crisis must not be underestimated.

Your Business: Cover Star Club

Profile: 'new normal' now is as dangerous as when it was applied to tech

Profile: 'new normal' now is as dangerous as when it was applied to tech

7IM's CIO Chris Darbyshire says he has been re-energised by his new role, but has little time for 'new normal' doom-mongers

Wealth Manager on Twitter