BlackRock expands equity income offering
BlackRock has announced plans to launch three new equity income funds available to UK investors from 31st March 2011, pending regulatory approval, meeting increased investor appetite for income in today's low yielding interest rate and high inflation environment.
The funds will enhance BlackRock's existing equity income product offering, the market leading BlackRock UK Income Fund, and build on the success of BlackRock's award winning Natural Resources, Global and European Equities teams. The funds will provide investors access to three distinct opportunities:
BlackRock Global Income Fund, to be co-managed by Stuart Reeve and Richard Turnill, will offer a focused portfolio of between 50 and 70 large cap stocks, with the aim of producing a yield greater than 1.5 times the MSCI All Countries World Index's dividend on an annual basis. The global, flexible style of the fund is designed to allow the team to find the best income generating stocks irrespective of sector or domicile.
BlackRock Continental European Income Fund, to be co-managed by Andreas Zoellinger and Alice Gaskell, will offer a focused but well-diversified portfolio of between 40 and 70 stocks, with the aim of generating an average yield of at least 110 per cent of the average market yield of the FTSE World Europe Ex. U.K. Index (net) and aims to outperform that index on a rolling five year basis. The portfolio will be flexible with regards to size, country and market cap, but will always display a yield bias versus the index.
BlackRock World Resources Income Fund, to be co-managed by Richard Davis, Joshua Freedman and Tom Holl, will offer a flexible but focused portfolio of between 60 and 90 stocks, with the aim of providing an income yield greater than 150 per cent of the yield of the S&P Natural Resources Index. The investment universe of the fund includes all natural resources companies globally, including but not restricted to mining, energy and agricultural sectors.
Tony Stenning, Head of BlackRock's UK Retail Business, commented: "Today's investors face cash rates at record lows, diminishing fixed income yields demanding a higher risk appetite, and stubbornly high inflation. Equity income is a ‘best of both worlds' option, one in which investors are able to preserve and grow capital, while generating consistent, steady income.
"These three new funds demonstrate BlackRock's ambition to be the UK's leading equity income fund manager. They ensure we can offer investors a complete range of income products that leverage our global investment and risk management expertise. Developing a broad and diverse range of product solutions that meet clients' needs remains a core priority for BlackRock."