BlackRock unveils two funds to financial advisers
Two of BlackRock's Aussie equity funds are now available to advisers, the company has announced.
BlackRock Australian Equity Opportunities Fund (BAEOF) and BlackRock Australian Equity Absolute Return Fund (BAEARF) were launched to advisers at the company's national roadshow in Sydney.
Head of BlackRock's Australian Scientific Active Equities business Michael McCorry said traditional investment approaches might not deliver the returns clients are seeking.
"It is unlikely we will see a return to the highly liquid, low volatility market conditions experienced before the global financial crisis," McCorry said.
"Portfolios today must be more dynamic and more diverse than ever before," he added. "For a marginal increase in risk, removing the long-only constraint can significantly enhance the opportunity for alpha generation."
BAEOF aims to deliver returns that are 8 per cent above the S&P/ASX 200 Accumulation Index over rolling three-year periods.
The second fund, BAEARF, is targeting an 8 per cent per annum return above the RBA Cash Rate Target over a rolling three-year period.
"Unlike a traditional long-only equity fund where investors accept a relatively high degree of volatility, absolute return funds aim to produce a positive return each year," McCorry said.
Recommended for you
Clime Investment Management has faced shareholder backlash around “unsatisfactory” financial results and is enacting cost reductions to return the business to profitability by Q1 2025.
Amid a growing appetite for alternatives, investment executives have shared questions advisers should consider when selecting a private markets product compared to their listed counterparts.
Chief executive Maria Lykouras is set to exit JBWere as the bank confirms it is “evolving” its operations for high-net-worth clients.
Bennelong Funds Management chief executive John Burke has told Money Management that the firm is seeking to invest in boutiques in two specific asset classes as it identifies gaps in its product range.
