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.
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.