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.
“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”
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.”
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.