Fund Seeks Total Return from All Asset Types, Regions and Within
Sectors
Combines Tactical Asset Allocation Strategy While Managing Volatility
NEW YORK--(BUSINESS WIRE)--
BlackRock, Inc. (NYSE:BLK) today announced it is making available
to insurance separate accounts the BlackRock Managed Volatility VI Fund
(the “Fund”), which seeks to provide a flexible, unconstrained strategy
for achieving total return across asset types and regions, and within
sectors.
Previously named BlackRock Balanced Capital VI, the Fund has changed by
adding investment flexibility and risk-controls to engage various
opportunities through direct investments in individual securities,
derivatives and affiliated and unaffiliated mutual funds and ETFs. As
part of its investment strategy, the Fund also will incorporate risk
models to identify levels of risk within the Fund and the broader market
environment. During times of market stress, the Fund will seek to reduce
overall volatility by adjusting its asset allocation to lower risk
investments.
The Managed Volatility VI Fund is managed by Philip Green, a portfolio
manager from the BlackRock Multi-Asset Portfolio Strategies (MAPS) team.
MAPS is a 24-person team that focuses on using risk models to manage
portfolio volatility and has experience managing other outcome-oriented
BlackRock retail and institutional products including Managed Volatility
Portfolio, Multi-Asset Income Portfolio, and Market Advantage. MAPS
leverages the resources of the entire Multi-Asset Strategies team of
over 140 professionals and the depth and breadth of BlackRock. At
December 31, 2012, MAPS managed over $28 billion in assets, which
includes $7.5 billion assets under management in Managed Volatility
strategies.
The team also manages diversified portfolios for pensions, global
central banks, and other global tactical asset allocations portfolios.
The Fund will remain part of the BlackRock Variable Series Funds.
The Fund’s tactical asset allocation strategy will concentrate on
identifying opportunities based on valuations, macro environment, market
sentiment, and other idiosyncratic factors. Furthermore, the Fund takes
a disciplined approach to managing volatility to seek to provide a more
consistent investor experience while maximizing returns. The Fund uses
proprietary and market-based tools to seek to “de-risk” the portfolio in
high volatility environments, and “re-risk” the portfolio when
volatility falls.
“Heightened market volatility may be a feature of the New World of
Investing, but that doesn’t mean that investors must resign themselves
to a portfolio sometimes at odds with their risk tolerance,” said Frank
Porcelli, head of BlackRock’s US Wealth Advisory business.
“As economies around the world continue their slow recoveries,
distressing news may trigger damaging sentiment much more quickly,
creating pressures and negative returns,” Porcelli continued.
“Therefore, volatility management becomes even more important. To that
end, as investors search for diversified, risk-controlled sources of
income and return, we believe the BlackRock Managed Volatility VI Fund
is an ideal investment solution.”
“Managing risk is important for all types of investors as the current
market environment drives the search for globally diversified sources of
return,” added Michael Saliba, BlackRock’s Head of Sales for North
America within the firm’s Financial Institutions Group.
“Insurers, especially, are seeking investments in outcome-oriented funds
that will maximize their risk-adjusted total return when portfolio
volatility deviates from the targeted volatility,” he said. “We believe
the BlackRock Managed Volatility VI Fund offers insurance companies the
opportunity to invest in a product with increased stability,
institutional-quality risk management and flexibility.”
About BlackRock
BlackRock is a leader in investment management, risk management and
advisory services for institutional and retail clients worldwide. At
December 31, 2012, BlackRock’s AUM was $3.792 trillion. BlackRock offers
products that span the risk spectrum to meet clients’ needs, including
active, enhanced and index strategies across markets and asset classes.
Products are offered in a variety of structures including separate
accounts, mutual funds, iShares® (exchange
traded funds), and other pooled investment vehicles. BlackRock also
offers risk management, advisory and enterprise investment system
services to a broad base of institutional investors through BlackRock
Solutions®. Headquartered in New York City, as of
December 31, 2012, the firm has approximately 10,500 employees in 30
countries and a major presence in key global markets, including North
and South America, Europe, Asia, Australia and the Middle East and
Africa. For additional information, please visit the Company's website
at www.blackrock.com.
You should consider the investment objectives, risks, charges and
expenses of the fund carefully before investing. The
prospectus and, if available, the summary prospectus contain this and
other information about the fund, and are available, along with
information on other BlackRock funds, by calling 800-882-0052 or from
your financial professional. The prospectus and, if available, the
summary prospectus should be read carefully before investing.
BlackRock, Inc.
Catherine Keary, (212) 810-5237
Catherine.Keary@blackrock.com
Source: BlackRock, Inc.