BlackRock has introduced a new fund within its multi-asset income range, which targets cautious investors looking for an alternative to low yielding investments.
The new BlackRock Conservative Income Fund will offer exposure to global real estate investment trusts, preferred stocks, mortgage-backed securities as well as equity-covered call options, among others.
It will focus on risk management, while aiming to offer steady income through different market environments.
The vehicle aims to maintain a risk level equal to or lower than its 70% bonds and 30% equities risk benchmark.
BlackRock head of EMEA retail Michael Gruener said: “Investors at the cautious end of the spectrum may, at times, find their options limited in terms of cash flow generating investment vehicles that satisfy their risk appetite.
“Taking a conservative approach with risk management at its centre, the BlackRock Conservative Income Fund is designed to generate a regular income stream for investors through multiple market environments.”
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By GlobalDataThe new vehicle will be managed by BlackRock multi-asset income investing team members Michael Fredericks, Justin Christofel, and Alex Shingler.
“The balance between risk and reward in today’s investment landscape has left investors in a challenging position. Low rates have left investors starved for income, yet market uncertainty makes it hard to take on risk. The BlackRock Global Conservative Income Fund seeks to solve this problem by aiming to offer consistent income while closely managing risk,” Fredericks noted.