{"id":69170,"date":"2018-02-08T00:42:34","date_gmt":"2018-02-07T23:42:34","guid":{"rendered":"http:\/\/beta.next-finance.net\/innovation\/blackrock-expands-high-yield-range-with-fixed-maturity-bond-fund\/"},"modified":"2018-02-08T00:42:34","modified_gmt":"2018-02-07T23:42:34","slug":"blackrock-expands-high-yield-range-with-fixed-maturity-bond-fund","status":"publish","type":"post","link":"http:\/\/beta.next-finance.net\/en\/innovation\/blackrock-expands-high-yield-range-with-fixed-maturity-bond-fund\/","title":{"rendered":"BlackRock expands high yield range with fixed maturity bond fund"},"content":{"rendered":"<p>Fixed maturity portfolios have become an increasingly popular means for investors to access fixed income<br \/>\nmarkets, providing access to a diversified portfolio of bonds while maintaining the typical characteristics of an<br \/>\nindividual bond. Like investing in individual bond securities, these portfolios have a defined maturity date and<br \/>\naim to generate income throughout their investment lifecycle. At the same time, they share similar<br \/>\ncharacteristics to traditional mutual funds, as they are highly diversified and with low transaction costs. Fixed<br \/>\nmaturity portfolios have a limited offering window, meaning they are only open for subscriptions during the<br \/>\nasset gathering period.<\/p>\n<p><quote>The <strong>BSF USD High Yield Fixed Maturity Bond Fund<\/strong> is a fixed term high yield bond strategy with an expected<br \/>\nfive-year maturity. Through employing a buy, hold and maintain strategy, the fund aims to deliver regular<br \/>\nincome while providing improved downside protection and mitigated volatility versus the broad US high yield<br \/>\nmarket.<\/quote><br \/>\n The fund invests in US Dollar denominated high yield corporate bonds, with maturities predominately<br \/>\naround five years and has the flexibility to invest across sectors and geographies. The fund is open for<br \/>\nsubscriptions as of January 8, 2018 and will remain open for approximately three months[[Source: BlackRock prospectu]]. The Fund will<br \/>\nsubsequently be closed to new investors but offers daily liquidity to existing ones, subject to swing pricing.<br \/>\nNote, investors should anticipate holding their investment for the life of the fund to ensure income and return<br \/>\noutcomes are fully harvested.<\/p>\n<p>The fund will be managed by Mitchell Garfin, CFA, Senior US High Yield Portfolio Manager.<\/p>\n<p>Mitchell Garfin, Senior US HY Portfolio Manager at BlackRock, comments: <em>\u201cInvestors are diversifying the<br \/>\nways in which they access the bond markets. Fixed maturity portfolios are gaining traction as their hybrid<br \/>\nstructure allows investors to enjoy the diversification benefits of investing in a mutual fund while mitigating the<br \/>\nrisks of a concentrated portfolio of individual bonds. Given their unique structure, fixed maturity portfolios may<br \/>\nprovide stability in income with a reasonable degree of predictability.\u201d<\/em><\/p>\n<p>Michael Gruener, Head of EMEA Retail at BlackRock, adds: <em>\u201cGenerating returns in today\u2019s fixed income<br \/>\nmarkets remains a challenge. Clients continue to look for alternative ways to build income focused, diversified<br \/>\nand efficient bond portfolios. Fixed maturity portfolio can provide investors with an opportunity to retain bond like characteristics with greater certainty around outcomes. Having historically outperformed higher quality<br \/>\nfixed income during rising interest rate environments, we expect investor appetite for investing in high yield<br \/>\nassets to increase.\u201d<\/em><\/p>\n<p>The <strong>BSF USD High Yield Fixed Maturity Bond Fund<\/strong> is registered for sale in Austria, Belgium, Switzerland,<br \/>\nGermany, Denmark, Spain, France, Ireland, Italy, Luxembourg, Netherlands, Norway, Finland, Sweden, UK<br \/>\nand distributed in Latin America.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>BlackRock has launched a high yield fixed maturity bond fund, in response to<br \/>\ninvestor demand for alternative sources of return and ways to build income-focused, diversified and efficient<br \/>\nbond portfolios.<\/p>\n","protected":false},"author":20,"featured_media":69168,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1471],"tags":[1655,1856,1859,1681,1651,1711,1437,1691,1776],"_links":{"self":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/69170"}],"collection":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/comments?post=69170"}],"version-history":[{"count":0,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/69170\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media\/69168"}],"wp:attachment":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media?parent=69170"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/categories?post=69170"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/tags?post=69170"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}