BlackRock has launched a multi-asset emerging markets fund which it said will be able to include alternative strategies in a bid to generate lower volatility returns.
The group said its BlackRock Strategic Funds Emerging Market Allocation fund would aim to deliver “equity-like returns but without the volatility commonly associated with emerging markets.
Besides investing in stocks and bonds, the group said the fund would be able to take ‘short’ positions, which is when a manager seeks to benefit from the price of a security falling.
Alex Hoctor-Duncan, head of retail for Europe, Middle East and Africa BlackRock, said: “Emerging markets typically experience greater volatility relative to developed markets, like we have seen in recent weeks.
“History has shown, however, that having the conviction to stay the course throughout volatile periods can have a meaningful impact for investors.”
Jeff Shen, head of BlackRock Emerging Markets will run the fund and be supported by portfolio managers Seanna Kim and Rodolfo Martell.
“The diversity and depth of emerging market territories is growing, and risk levels and opportunities are constantly changing,” he said.
“It is becoming harder to talk about emerging markets as a group, with increasing country differentiation making it important to monitor countries on a fundamental basis.”
The launch of this multi-asset fund comes after the group last year launched two emerging market debt funds and in 2012 launched an absolute return fund.