BlackRock reaches $1 billion fund mark

BlackRock’s Monthly Income Fund has reached the $1 billion in funds under management mark less than three years after launching to market.

The investment management group’s co-chief investment officer, Russell Maddox, said the fund was launched in response to a “considerable increase” in appetite for enhanced income generating products among wholesale investors.

“Our research showed there was substantial demand for a product like this among investors who were seeking a high level of regular income but also able to tolerate some capital price volatility,” Maddox said.

“The proven track record of our dedicated Australian cash and fixed income team illustrates their total focus on strong performance, and it is from this commitment that investors in our Monthly Income Fund have been able to benefit from positive results and sound returns,” he said.

Maddox said the fund invests in high quality debt securities from around the world, with the recent BlackRock-MLIM merger enhancing its advantages by bringing together the experience of a global fixed income powerhouse, particularly through its risk management tools, research and investment management process.

Launched in July 2004, the fund has outperformed its investment aim of generating a gross return of up to 1.7 per cent over the UBS Australian Bank Bills index by investing in longer dated, predominantly high credit quality (investment grade) fixed income instruments from around the globe, which is hedged back to floating $A rate exposures.

BlackRock is one of the world’s largest publicly traded investment management firms, with US$1.075 trillion in assets under management as at September 30, 2006.