BlackRock is renaming its £103m high income bond fund as part of a range of changes to the fund.
It will take the name of BlackRock corporate bond, subject to approvals, with the firm making changes to its investment objective and income and accounting dates.
The investment policy is to change to emphasise the provision of total return rather than income. The currency of interest bearing securities is no longer limited to sterling or euro-denominated instruments. However, the fund will typically hedge non-sterling-backed securities back into sterling.
Income payments will change from monthly to quarterly, a move that is in line with many of the fund’s peers, according to BlackRock managing director Tony Stenning.
Unitholder approval permitting, the group intends to make the changes at close of business on September 17. If approved, the next income allocation date will be January 31, 2010.
The high income bond was launched in 1995 and is managed by Daniel Mckernan.
Stenning says: “Greater client demand for the offering may benefit all investors as the fixed costs of running a fund are borne by a greater number of unitholders. The fund will remain within the IMA sterling corporate bond sector.”