BlackRock has expanded its multi-asset fund range for UK pension funds with the launch of its Strategic Growth Fund.
It has been launched in response to a growing appetite among DB and DC pension schemes for investment products that offer long-term growth but with less volatility than equities, claims BlackRock
The fund, which will be part of BlackRock’s diversified growth range, will be managed by Adam Ryan and will look to allocate to both bonds and equities as well as non-traditional assets such as high-yield, infrastructure, real estate investment trusts and gold. It will also commit at least 5% of capital to ESG themes.
According to BlackRock, the launch of a multi-asset fund is a response to the changing needs of UK pension funds and the demand for capital growth amid the changing risk profiles of many traditional pension schemes.
“Rather than looking to a single asset class such as global equities to facilitate this growth, multi asset funds that place greater emphasis on staying invested in a range of long-term growth opportunities can help scheme design,” said Dominic Byrne, multi asset investment strategist at BlackRock.
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