BlackRock, Inc is making available to retail and high net worth clients the BlackRock Multi-Asset Income Fund (BAICX), which provides an unconstrained strategy for tapping the best opportunities for diversified income around the world, across asset classes and within sectors.
The Fund offers to individual investors for the first time an approach for income generation that BlackRock has already implemented for many leading, global institutional investors. Previously named the BlackRock Income Portfolio Fund, the Fund has changed by adding flexibility to pursue a broader range of attractive income and return opportunities including alternative sources of income such as MLPs, REITs and other investment instruments.
The Fund is managed by a team of portfolio managers from the BlackRock Multi-Asset Client Solutions (BMACS) team. BMACS is a 150-person team consisting of analysts, actuaries, strategists and portfolio managers globally. At 31 December, 2011, BMACS managed over USD80 billion in retail client assets. The team develops institutional-grade tactical asset allocation strategies for some of the world’s largest endowments, pension plans, sovereign wealth funds, 401k plan participants and retail investors.
Tactical asset allocation is a flexible strategy that includes a long-term outlook focusing on valuation to identify undervalued asset classes while considering short-term drivers of return including changing economic conditions and rapid swings in investor behavior. With tactical asset allocation, the Fund can efficiently target income opportunities in a world where yields fluctuate rapidly and widely.
“Low yields and high volatility have made generating investment income more challenging than ever,” says Michael Fredericks, US Retail Head of BMACS. “With rising longevity, it is especially urgent for those near or in retirement to secure stable income streams that outpace inflation.
“Income-seeking investors need to look beyond traditional asset classes and consider the new income opportunities emerging across sectors and geographies worldwide. The BlackRock Multi-Asset Income Fund offers a solution, with a highly effective tactical asset allocation strategy that allows us to seek income globally and quickly adjust positions as risk, return and income characteristics change over time.”
The Multi-Asset Income Fund aims to provide less volatility than a traditional balanced portfolio. To that end, its managers maintain daily contact with BlackRock’s industry-leading risk management professionals to assess the likely impact of risk sources on fund positions and re-allocate assets accordingly.
“Traditional income sources are falling short in today’s environment. Therefore, we want to help clients employ different strategies that go beyond the simple, 60/40 equity-and-fixed income portfolio rule of the past,” says Frank Porcelli, head of the firm’s U.S. Retail business. “For investors who are starved for yield but don’t want added volatility, the BlackRock Multi-Asset Income Fund could be an optimal core portfolio holding.”
