BlackRock Investment Management (Australia) Limited (Blackrock IM) has launched a new product – the BlackRock Global Screened Government Bond Fund for Australian institutions.
According to the company, the new fund is underpinned by BlackRock's Sovereign Risk Index (BSRI) launched earlier this year, and is a proprietary index ranking the credit integrity of sovereign issuers (government bonds).
It said Australian institutions would be able to access the new product through a pooled vehicle as well as by individual mandates.
Commenting on the new fund, BlackRock Australia head of fixed income Steve Miller said the launch coincided with turbulence in major debtor countries, including the euro zone nations and the US. This was causing Australian institutions to look for new ways to help manage the effects of increasing risk in fixed income portfolios.
"We believe the new fund is well-suited for the era of acute market volatility we are living in, which is challenging long-held beliefs about the risk-free attributes of government bonds," he said.
Miller said BlackRock believed the new fund would have great appeal to Australian institutions that want to ensure that fixed income assets can continue to fulfil their traditional role in portfolio diversification.
