BlackRock has launched a new active fixed income fund.
The Global Funds Impact Bond Fund will invest across global bond markets, including mortgage-backed securities, municipal investments and green, social and sustainable bonds.
The fund aims to generate risk-adjusted alpha and has a flexible approach to sector allocation, defining itself as unconstrained in style and without a benchmark index.
Investors should use the ICE Green, Social & Sustainable Bond Index, euro-hedged, to compare the performance of the fund.
The fund will be managed by BlackRock’s global multi-sector and European fixed income management team, and is classified as Article 9 under the EU’s sustainable finance disclosure regulation.
Ronald van Loon, co-manager of the BGF Impact Bond Fund said: “The BGF Impact Bond Fund taps into the growing investor interest in driving positive social and environmental impact within a fundamental active global bond portfolio, leveraging BlackRock’s proprietary impact research with its macro global investment views.”
Since the start of the year, the price of government and corporate bonds has crashed, as rising interest rates have meant investors are able to gain similar returns from less risky assets.
This has thrown up opportunities for investors after years of ultra-low interest rates, experts have said.