BlackRock is aiming to overhaul one of its multi-asset funds to make it more global in outlook and also reduce its reliance on equities.
The group has said it wants to rename its £79.2m Balanced Income Portfolio fund the Global Multi-Asset Income fund and reposition the portfolio.
The fund was launched in 1994 and altered in 2006 to have a multi-asset income mandate but the company said interest in the fund had been “muted” - with a key reason being its UK focus.
“In recent years, while the fund has delivered a consistent level of income and reasonable capital return, other funds adopting multi-asset income strategies have proved more attractive to investors and so investor interest in the fund has been muted,” the group said.
“We believe a key reason for this has been that, unlike those other funds, the source of the fund’s returns are closely linked to the UK which has restricted the fund’s ability to benefit from greater exposure to global assets.”
BlackRock said it therefore aimed to “remove its UK emphasis” and its “allocation to equity securities should be reduced” to help with diversification.
“We believe that unitholders value the diversified income provided by the fund over its emphasis to the UK. Although the fund’s UK emphasis is to be removed, its exposure to non-sterling currencies will continue to be hedged (except for on the fund’s income) so that the non-sterling currency risk is removed,” the group added.
The changes are expected to take effect on January next year.
