BlackRock is set to overhaul its £33.6m Global Bond fund to tap into the investor demand for unconstrained fixed income funds.
The asset manager is looking to change its BlackRock Global Bond fund to the BlackRock Fixed Income Global Opportunities fund in March.
The revamp will see the fund’s benchmark removed and the strategy changed to allow the managers to invest anywhere in fixed income markets.
Scott Thiel will remain as manager but will be joined by Bob Miller and Rick Reider, while the fund will be moved from the IMA Global Bonds sector to the IMA Sterling Strategic Bond sector.
The BlackRock trio currently run the Fixed Income Global Opportunities strategy as a Luxembourg fund and in the US, and the UK fund will be overhauled to mirror that strategy, but with all positions hedged back to sterling.
BlackRock said the charges and minimum investment on the fund will remain the same, but the SRRI risk score on the fund will drop from 5 to 4 as a result of the changes.
The Luxembourg-domiciled BlackRock Global Funds Fixed Income Global Opportunities has delivered a return of 64.9 per cent since its launch in February 2007.
The fund overhaul will take place on March 19 and BlackRock has written to current shareholders today to inform them of their plans.
The firm said it would shoulder any of the costs related to the fund overhaul.
