|Expense Ratio (net)||0.80%|
|Morningstar Risk Rating||★|
|Last Cap Gain||0.00|
|Inception Date||Apr 7, 2008|
|Average for Category||N/A|
The world's largest asset firm sees a risk in today's rising interest rate environment — one which could create losses for bond market investors.
A top BlackRock Inc fund manager said his team cut its exposure to preferred stocks to a "historical" low of 5 percent on fears that market volatility could spill into the asset class. "We continued to reduce the fund's allocation to preferred stocks based on the view that market volatility would spill over to the asset class, which had initially outperformed during the broader market selloff," said Michael Fredericks, who manages the $12 billion BlackRock Multi-Asset Income Fund, in a monthly letter distributed Friday. The letter described the current 5 percent allocation to preferred stocks as a "historical" low for the eight-year old fund, which has carried as much as 11 percent exposure to the asset.
A top portfolio manager at BlackRock Inc said his fund recently added exposure to European junk bonds, adding that "widespread pessimism" in markets has created new investment opportunities. The European high-yield market has grown attractive in part because of its limited exposure to volatile energy companies, according to Michael Fredericks, who manages the BlackRock Multi-Asset Income Fund. "We recently increased the fund's position in European high yield, a growing asset class with spreads near their widest levels in two years," Fredericks said in a commentary distributed Wednesday.