BlackRock has launched a new fund which will focus on securitised assets in the UK and Europe.
Securitisation is the process of turning income-producing assets, usually debt, into one investable security.
The BlackRock Senior Securitised Fund, the firm's flagship securitised pooled fund, was launched today (November 20) in the existing BlackRock Specialist Strategies Fund range.
The firm said it will meet "strong demand" for securitised assets from institutional and wealth clients seeking access to diversify their fixed income exposures.
Across its platform, BlackRock manages over USD $120bn (£96bn) of securitised assets globally.
Lead portfolio manager Kate Galustian, said the fund will offer "attractive risk-adjusted returns" for clients.
Meanwhile, Anne Parthiot-Mons, head of BlackRock's EMEA institutional client business, said: “The fund is designed to meet the growing international demand across institutional and wealth clients for securitised assets and the diversification benefits that they offer for clients’ fixed income exposures.”
The fund is actively managed and is an Irish domiciled Alternative Investment Fund which will invest in both primary and secondary offerings of securitised assets.
Ajith Balan Nair, head of investment research, at pensions advisory firm ISIO welcomed the launch of the new fund.
He added: "We like high quality ABS (asset backed securities) as an asset class for the yield premium versus corporate credit, diversification benefits from exposure to consumer risk and the floating rate nature.
"More broadly, we see ABS as a versatile asset class that can play a wide range of roles in client portfolios ranging from allocations in collateral buckets to growth portfolios.”
The fund will be classified under the EU’s Sustainable Finance Disclosure Regulation (SFDR) as Article 8, meaning they promote environmental or social characteristics but do not have specific sustainable investment objectives.
tara.o'connor@ft.com
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