American money manager BlackRock has unveiled an emerging markets (EM) short-duration bond fund that will offer investors higher yields while reducing interest rate risk.
The new vehicle, called BlackRock Emerging Markets Short Duration Bond, will invest in multiple short-duration bonds across various sectors and geographies.
The fund will allocate between sovereigns, corporates and local currency bonds with a maximum duration of three years.
Sergio Trigo Paz, the company’s global head of emerging markets fixed income team, has been appointed as lead portfolio manager of the new strategy. Michal Katrencik and Michal Wozniak will serve as co-managers.
“Historically seen as an opportunistic asset class, emerging market debt is increasingly being used by investors as a long term strategic allocation due to improving fundamentals and strong diversification benefits. This fund is a great addition to the range we have built, to help investors achieve greater income potential and diversification from a higher-yielding asset class,” Paz noted.