BlackRock Inc. will give its retail clients access to alternative investments through mutual funds, a product it says investors have been clamoring for. The company expects to launch more funds in a growing suite of alternative investment products.
BlackRock already has about $115 billion in alternative-investment assets under management for its accredited and institutional clients. All in, the firm manages $3.659 trillion for those clients. Until now, however,
BlackRock has not offered retail clients a chance to invest in alternatives.
The new funds, which will have a $1,000 minimum, come in response to growing investor demand for investments that are not correlated to the wider market, the company said.
“With the extreme market volatility of recent years, investors are increasingly focused on portfolio construction and have embraced alternative investments as a way to diversify their core holdings,” Frank Porcelli, managing director and head of BlackRock's U.S. retail business, said in a statement.
The company's first three retail alternatives mutual funds all invest in different asset classes and employ different investment strategies.
The
BlackRock Commodity Strategies Fund Ticker:(BCSAX) offers exposure to commodities through futures and equities of companies in the natural resources industry. The
BlackRock Emerging Markets Long/Short Equity Fund Ticker:(BLSAX) is fundamentally based and scientifically implemented, and uses advanced techniques to identify misvaluations across stocks and markets in a risk-controlled manner. The
BlackRock Global Long/Short Credit Fund Ticker:(BGCAX) is an interest-rate neutral, global long/short credit fund.
The funds will be available along with the rest of BlackRock's offerings, which means they could start showing up in adviser and retirement plan offerings, a spokeswoman said.
“Particularly for investors who are nearing retirement, alternative mutual funds can provide an added layer of portfolio diversification and risk control through multiple market cycles,” Mr. Porcelli said. “The addition of these funds allows
BlackRock to meet the alternative investment needs of a broader range of investors.”
