Friday, October 07, 2011
BlackRock Offers a Trio of Alternative Mutual Funds
Reported by Hung Tran
BlackRock, Inc.[see profile]
has launched three alternative mutual funds for its U.S. retail and high net worth client base. The three new mutual funds offered by the firm include: the BlackRock Commodity Strategies Fund
; the BlackRock Emerging Markets Long/Short Equity Fund
and the BlackRock Global Long/Short Credit Fund
"With the extreme market volatility of recent years, investors are increasingly focused on portfolio construction and have embraced alternative investments as a way to diversify their core holdings," stated Frank Porcelli
, managing mirector and head of BlackRock's U.S. retail business, which managed approximately $314 billion in client assets as of June 30, 2011.
"BlackRock is a preeminent provider of alternative investment solutions globally and we are pleased to extend the firm's robust platform to our high net worth clients."
BlackRock Launches Three Mutual Funds Featuring Alternative Investment Strategies
BlackRock, Inc. (NYSE:BLK) today announced the launch of three mutual funds featuring alternative investment strategies available to the firm's U.S. retail and high net worth client base. The funds are designed to provide individual investors with access to strategies that offer non-correlated returns and diversification benefits with the goal of minimizing portfolio volatility and preserving return objectives.
The three new mutual funds offered by the firm include:
BlackRock Commodity Strategies Fund (BCSAX) is designed to provide investors with complete commodities exposure through commodities futures equities with exposure to natural resources. The Fund will be managed by a team of portfolio managers led by Evy Hambro and Robin Batchelor, joint Chief Investment Officers of the Natural Resources Equity Team and members of the Global Index Commodities Team;
BlackRock Emerging Markets Long/Short Equity Fund (BLSAX) is fundamentally based and scientifically implemented and uses advanced techniques to identify mis-valuations across stocks and markets in a risk controlled manner. Jeff Shen, PhD, Head of Asia Pacific and Emerging Market Equity within BlackRock's Scientific Active Equity Group, will be the lead portfolio manager of the Fund;
BlackRock Global Long/Short Credit Fund (BGCAX) is an interest rate neutral, global long/short credit fund seeking to generate total returns from credit markets. Michael Phelps, head of European Credit, and Joshua Tarnow, member of the Corporate Credit Group within the firm's Fundamental Fixed Income team, will co-manage the Fund.
"With the extreme market volatility of recent years, investors are increasingly focused on portfolio construction and have embraced alternative investments as a way to diversify their core holdings," said Frank Porcelli, Managing Director and Head of BlackRock's U.S. Retail Business which managed approximately $314 billion in client assets as of June 30, 2011. "BlackRock is a preeminent provider of alternative investment solutions globally and we are pleased to extend the firm's robust platform to our high net worth clients."
BlackRock has been managing alternative investments on behalf of clients for more than 15 years and in 2010 launched BlackRock Alternative Investors (BAI) to coordinate the firm's alternative investment efforts globally. As of June 30, 2011, the firm managed $115 billion in alternative investment assets including hedge funds, funds of hedge funds, real estate and private equity.
"Particularly for investors who are nearing retirement, alternative mutual funds can provide an added layer of portfolio diversification and risk control through multiple market cycles," added Porcelli. "The addition of these funds allows BlackRock to meet the alternative investment needs of a broader range of investors."
The new funds will be available to the firm's retail and high net worth investors through financial intermediaries.
BlackRock is a leader in investment management, risk management and advisory services for institutional and retail clients worldwide. At June 30, 2011, BlackRock's AUM was $3.659 trillion. BlackRock offers products that span the risk spectrum to meet clients' needs, including active, enhanced and index strategies across markets and asset classes. Products are offered in a variety of structures including separate accounts, mutual funds, iShares® (exchange-traded funds), and other pooled investment vehicles. BlackRock also offers risk management, advisory and enterprise investment system services to a broad base of institutional investors through BlackRock Solutions®. Headquartered in New York City, as of June 30, 2011, the firm has approximately 9,700 employees in 26 countries and a major presence in key global markets, including North and South America, Europe, Asia, Australia and the Middle East and Africa. For additional information, please visit the Company's website at http://www.blackrock.com.
The funds are actively managed and their characteristics will vary. Stock and bond values fluctuate in price so the value of your investment can go down depending on market conditions. International investing involves risks, including risks related to foreign currency, limited liquidity, less government regulation and the possibility of substantial volatility due to adverse political, economic or other developments. These risks often are heightened for investments in emerging/developing markets or smaller capital markets. Concentrating investments in natural resources industries can be affected significantly by events relating to those industries, such as variations in the commodities markets, weather, disease, embargoes, international, political and economic developments, the success of exploration projects, tax and other government regulations and other factors. Investing in derivatives entails specific risks relating to liquidity, leverage and credit that may reduce returns and/or increase volatility.The two main risks related to fixed income investing are interest-rate & credit risk. Typically, when interest rates rise, there is a corresponding decline in a bond 'market's value. Credit risk refers to the possibility that the issuer will not be able to make principal & interest payments.
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