Diversified Portfolios
BlackRock adds to passive fund range
Rob Langston, 19 July 2011
BlackRock is to make two further additions to its passively managed range with the BlackRock Balanced Consensus and Global Consensus funds.
The funds will be co-managed by Mason Woodworth and Martyn Farmer and are set to launch on 22 July.
The BlackRock Balanced Consensus fund will to replicate the asset allocation of the average fund in the Lipper ABI Mixed Investment 40-85 per cent Shares Pension sector.
The fund will have a minimum of 40 per cent and a maximum of 85 percent exposure to equities and will invest in up to 10 BlackRock equity and fixed-income tracker funds.
The BlackRock Global Consensus fund will aim to replicate the asset allocation of the average fund in the Lipper ABI Global Equity Pension sector.
The Global Consensus fund will have at least 80 per cent of its assets in equities spread across more than one region.
Both funds will be rebalanced monthly when average asset allocation figures for the sectors become available, but is likely to lead to a 11-day lag.
Richard Troue, analyst at Hargreaves Lansdown, said although the funds aimed to replicate asset allocation, they would not replicate performance.
He said, 'If the managers believe it would be inefficient to gain exposure to a specific asset class it may deviate from its asset allocation model.
'The performance of the funds will depend on the performance of the underlying investments and how well they track their respective benchmarks.'
The annual management charge of the funds is 0.6 per cent, with projected total expense ratios (TERs) is 0.63 per cent on the Balanced fund and 0.62 per cent on the Global fund. Both funds have a minimum investment of £1,000.
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