Key Takeaways
- • BlackRock has launched the Systematic Multi-Strategy ESG Screened fund in Europe, a UCITS-compliant liquid alternatives vehicle offering daily liquidity.
- • The single-manager fund targets investors seeking alternative sources of diversification and income to complement bond portfolios amid low yields and rising inflation.
- • The fund includes a defensive long/short equity component that applies credit expertise to equity selection.
- • The fund is categorised as Article 8 under the EU's Sustainable Finance Disclosure Regulation (SFDR), with ESG screens excluding issuers involved in controversial weapons, oil sands, thermal coal, tobacco and civilian firearms.
- • BlackRock expects 70% of its European fund launches or repositionings in 2021 to qualify under SFDR Article 8 or 9.
Summary
BlackRock has launched a multi-strategy alternatives ESG fund in Europe that offers daily liquidity and meets UCITS regulatory criteria, according to Funds Europe. The vehicle, named the Systematic Multi-Strategy ESG Screened fund, is designed as a single-manager product for investors seeking to add alternative sources of diversification and income to their bond portfolios.
Jeff Rosenberg, senior portfolio manager of the fund, linked the product's rationale to the current macro backdrop. He said: "The ongoing macro environment of low yields and rising inflation has forced investors to re-think the role of fixed income across portfolios as the return and diversification benefits have become more challenged." The fund's defensive long/short equity component is intended to deliver "defensive returns" by applying the firm's credit expertise to equity selection.
On sustainability, BlackRock said the fund is categorised under Article 8 of the EU's SFDR and applies ESG screening to issuers involved in controversial weapons, oil sands, thermal coal, tobacco and civilian firearms. The firm also said it expects 70% of its fund launches, or repositionings of existing funds, in Europe this year to qualify under Article 8 or 9 of the regulation.
The launch sits within BlackRock's broader liquid alternatives platform, which the firm describes as combining institutional hedge fund expertise with the accessibility of daily liquid mutual funds. Related offerings referenced on the publisher's domain include the Tactical Opportunities Plus fund and the iShares Systematic Alternatives Active ETF (Nasdaq: IALT). Specific fund size, fee structure and performance data were not disclosed in the source material.
Jeff Rosenberg, senior portfolio manager of the fund, linked the product's rationale to the current macro backdrop. He said: "The ongoing macro environment of low yields and rising inflation has forced investors to re-think the role of fixed income across portfolios as the return and diversification benefits have become more challenged." The fund's defensive long/short equity component is intended to deliver "defensive returns" by applying the firm's credit expertise to equity selection.
On sustainability, BlackRock said the fund is categorised under Article 8 of the EU's SFDR and applies ESG screening to issuers involved in controversial weapons, oil sands, thermal coal, tobacco and civilian firearms. The firm also said it expects 70% of its fund launches, or repositionings of existing funds, in Europe this year to qualify under Article 8 or 9 of the regulation.
The launch sits within BlackRock's broader liquid alternatives platform, which the firm describes as combining institutional hedge fund expertise with the accessibility of daily liquid mutual funds. Related offerings referenced on the publisher's domain include the Tactical Opportunities Plus fund and the iShares Systematic Alternatives Active ETF (Nasdaq: IALT). Specific fund size, fee structure and performance data were not disclosed in the source material.
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