BGF Global Bond Income Fund

BlackRock has launched a new bond fund for its fixed income boss Rick Rieder that can invest across the whole global fixed income universe.

The BGF Global Bond Income fund will be run by Rieder, BlackRock’s CIO of global fixed income, and other senior bond managers with the aim of capturing strong performance across the credit cycle.

The fund will invest in traditional as well difficult to access sectors, countries and bonds, including high yield and investment grade credit, higher quality corporate bonds, securitized assets and emerging market debt, the company said.

The typical duration of the fund is just over two years and Rieder’s team active approach will allow them to manage interest rate and credit risk to mitigate losses in times of market stress.

Commenting on the new fund, Rieder said: ‘In an environment of low interest rates, investors have to work harder in their search for income. Applying a flexible, go anywhere approach to fixed income provides investors with access to a wider and more diverse set of investment opportunities.

‘Without the limitations imposed by a traditional broad-market benchmark, the fund is able to invest across the entire global fixed income opportunity set, including those asset classes, securities and countries that are often hard to reach.’

Rieder currently oversees BlackRock’s $1.9 trillion global fixed income platform and also runs the BGF Fixed Income Global Opportunities and BGF US Dollar Bond funds.

Reference
CityWireAmericas, Atholl Simpson, 2018-08-20, “BlackRock launches ‘go anywhere’ bond fund for star PM Rieder”