BlackRock mulls strategic bond fund launch

BlackRock is considering launching a strategic bond fund this year to help with investors’ search for income.

The firm has one fund in this area – the absolute return bond fund, launched last October.

Head of UK retail Tony Stenning (pictured) says: “I expect us to build on our fixed-income proposition as the year progresses. Strategic bond is one of the options we are looking at.

“Income is going to be a big trend and we can build on that. Long gone are the days where you retired and lived for five to 10 years. Your retirement pot now has to last you 30 years.”

Stenning says the firm has no plans to launch a high-yield bond fund. He says: “High yield is a bandwagon that we do not want to jump on. You do not want to realise in three years that you were not the best high-yield fund manager and disappoint clients, then wonder why investors do not trust us.”

Investment Quorum chief executive Lee Robertson says: “We have seen appetite for strategic bonds, especially for managers who have experience. We are seeing launches because it is flexible in terms of investment.”