New Products

What's New In Investments, Funds? – BlackRock, WisdomTree

Editorial Staff 23 November 2023

What's New In Investments, Funds? – BlackRock, WisdomTree

The latest news in investment offerings, financial products and other services relative to wealth advisors and their clients.

BlackRock, which manages more than $120 billion of securitised assets globally on its platform, has launched the BlackRock Senior Securitised Fund (BSSF), its new flagship securitised fund, in the existing BlackRock Specialist Strategies Fund range.

The fund, which uses BlackRock’s expertise across securitised assets, with a predominant focus on Europe and the UK, will include asset-backed securities (ABS) and collateralised loan obligations (CLOs) to meet the strong demand for securitised assets from both institutional and wealth clients seeking access to diversify their fixed income exposures, the firm said in a statement.

“The fund seeks to maximise total return by investing in high grade, predominately AAA, securitised assets, in a manner consistent with the principles of ESG-focused investing,” Kate Galustian, lead portfolio manager, BlackRock senior securitised fund and head of European ABS, said.

The BSSF, which is actively managed and has an unconstrained investment style, is an Irish domiciled alternative investment fund, investing in both primary and secondary offerings of securitised assets.

The fund adopts the following credit rating, geographical and sector constraints when managing investment positions:

-- Credit rating constraints: BSSF is focused on the higher quality portion of the capital structure – with a minimum exposure of 75 per cent to AAA assets and a minimum rating of AA-;

-- Geographical constraints: BSSF is predominately focused on European and UK assets but can also invest up to 25 per cent in the US (and other regions); and

-- Sector constraints: BSSF will have a minimum exposure of 65 per cent to ABS and a maximum exposure of 35 per cent to CLOs.

The fund will be classified under the EU’s Sustainable Finance Disclosure Regulation (SFDR) as Article 8, with ESG factors acting as a core component of the team’s securitisation analysis, and with a skew towards issuance with positive social and/or environmental impact.

WisdomTree, a global financial innovator, has expanded its flagship equity Exchange-Traded Fund (ETF) range with the launch of the WisdomTree UK Quality Dividend Growth UCITS ETF (UGRW) on the London Stock Exchange. 

UGRW aims to track the price and yield performance before fees and expenses of the WisdomTree UK Quality Dividend Growth Index which has a total expense ratio of 0.29 per cent, the firm said in a statement.

The index follows a rules-based, fundamentally weighted approach and comprises high-quality dividend paying companies from the UK market with high return on equity, high return on assets and high medium-term earnings' growth. By focusing on quality stocks, the index aims to provide both upside participation in bull markets and exposure to leading dividend growers. The index excludes companies which do not meet WisdomTree’s ESG (environmental, social and governance) criteria, the firm added.

The ETF complements the global, US and eurozone exposure in WisdomTree’s Quality Dividend Growth UCITS ETF range. The firm’s flagship equity ETF range has $14.4 billion in assets under management globally.

“This new UCITS ETF complements the existing Quality Dividend Growth range, providing another option for investors seeking a core UK equity investment solution. With our Quality Dividend Growth range continuing to grow and attract more interest, the time was right to expand the suite of ETFs and launch a UK-focused approach of our flagship equity strategy for UK investors,” Alexis Marinof, head of Europe at WisdomTree, said. 

Register for WealthBriefing today

Gain access to regular and exclusive research on the global wealth management sector along with the opportunity to attend industry events such as exclusive invites to Breakfast Briefings and Summits in the major wealth management centres and industry leading awards programmes