BlackRock has launched a multi-asset strategic growth fund targeted at defined benefit and defined contribution pension schemes seeking long-term growth and less volatility than equities.
A minimum of 5 per cent of the fund’s capital will be invested in to environmental, social and governance themes. BlackRock, which manages $6.44 trillion of assets globally, also says ESG considerations will be integrated into the wider investment process.
The fund is managed by Adam Ryan and BlackRock’s Diversified Strategies team and will form part of the firm’s multi-asset fund range.
It targets a total return through long-term allocations to bonds, equities and non-traditional assets and diversifiers such as high yield, REITS, infrastructure equities, and gold.
BlackRock, multi-asset investment strategist Dominic Byrne says: “UK pension funds need capital growth, whether you are a UK trustee looking to assist a DB scheme in their efforts to meet future liabilities or a member of a DC scheme looking to fund spending through retirement.
“Rather than looking to a single asset class such as global equities to facilitate this growth, multi-asset funds that place greater emphasis on staying invested in a range of long-term growth opportunities can help scheme design.
“Through its innovative strategic asset allocation policy, the BlackRock Strategic Growth Fund seeks to provide this long-term exposure to a range of risk assets with only two-thirds the volatility of equities over an investment cycle.”