The New York-headquartered investment giant has added to its multi-asset offering.

BlackRock has launched a fund targeting absolute returns across multiple asset classes, using "style factors". 

The BlackRock Strategic Funds Style Advantage fund will invest in a diverse set of style strategies including value, momentum, quality, volatility and carry. It aims to combine these strategies through a diverse long-short portfolio comprised of over 2,500 securities across equities, fixed income, commodities and currencies. The result is a fund that is not dependent on market movements and which has a low correlation with traditional assets, BlackRock said.

The fund will be managed by the company's factor-based strategies group, led by chief investment officer Ked Hogan.

“In a volatile world where there are valuation headwinds for both equities and fixed income, investors need new, consistent sources of positive absolute return. This fund could be an effective diversifier for investors with different target outcomes, including asset allocators looking to build versatile portfolios for their clients,” said Alex Hoctor-Duncan, head of Europe, Middle East and Africa retail at BlackRock.

BlackRock manages around $125 billion in factor-based and smart beta strategies across equities, fixed income, commodities and alternatives.