BlackRock to launch trio of equity income funds

BlackRock has expanded its equity income fund range with the launch of global, European, and resources offerings.

The onshore BlackRock Global Income, Continental European Income and World Resources Income funds open for investment on 31 March.

Global Income, which will be co-managed by Stuart Reeve and Richard Turnill, will comprise 50-70 large cap stocks. It will aim to deliver a yield greater than 1.5 times the MSCI All Countries World index's dividend on an annual basis.

Continental European Income will be co-managed by Andreas Zoellinger and Alice Gaskell. The 40-70 stock portfolio will aim to generate an average yield of at least 110% of the average market yield of the FTSE World Europe ex UK index.

The fund will aim to outperform the index on a rolling five-year basis. The portfolio will be flexible with regards to size, country and market cap, but will always display a yield bias versus the index, the group says.

Meanwhile, World Resources Income fund will be co-managed by Richard Davis, Joshua Freedman and Tom Holl.

It will hold between 60 and 90 stocks, with the aim of providing an income yield greater than 150% of the yield of the S&P Natural Resources index. The investment universe of the fund includes all natural resources companies globally, including but not restricted to mining, energy and agricultural sectors.

The funds have an annual management charge of 1.5%, and an initial charge of 5%.

Tony Stenning, head of BlackRock's UK retail business, says: "Today's investors face cash rates at record lows, diminishing fixed income yields demanding a higher risk appetite, and stubbornly high inflation. Equity income is a ‘best of both worlds' option, one in which investors are able to preserve and grow capital, while generating consistent, steady income.

"These three new funds demonstrate BlackRock's ambition to be the UK's leading equity income fund manager."

The new offerings will complement the group's existing equity income funds, including the £649m UK Income fund, and the offshore BGF Global Equity Income and Asia Pacific Equity Income funds.