Currently DevDosh Ltd found some interesting news about Blackrock is looking to open up the world of alternative investments with an investment fund that is an amalgamation of different type of asset classes.
This multi-asset fund will include infrastructure debt, renewable energy, real estate debt, long lease property and private credit.
According to the investment manager in charge of the fund the BlackRock UK Strategic Alternative Income Fund has been constructed to achieve a net annual yield of 5% and cash flows linked to inflation.
The fund came onto the scene last year and the sterling denominated real asset fund targets the defined benefit pension scheme market in the UK.
BlackRock disclosed the launch of the fund only a few short months after Willis Towers Watson a UK pension fund consultancy, launched their very own secure income fund, with targets and objectives very much alike that of the BlackRock UK Strategic Alternative Income Fund.
Andrew Stephens, managing director for BlackRock’s UK institutional business, said: “This fund was specifically designed for UK institutional investors, making it possible for them to access a broad, actively-managed private-market investment portfolio.
“UK pension schemes in particular are facing the triple threat of underfunding, a poor forward-looking return environment from traditional assets and increasing cash-flow negativity.
“They are also ideally positioned to benefit from allocations to private market assets, given their longer-term investment horizons.
“Trustees are increasingly recognizing the yield premium offered by less liquid assets as well as the diversification benefits they provide.”
In DevDosh Ltd opinion, this is short is saying that investors need asset classes with real underlying values that can produce returns organically, rather than pure speculation.
BlackRock conducted a survey earlier this year that predicted that 63% of UK institutional investors will look to increase the amount of money they invest in real assets this year.
Stephens added: “The commitments we have seen to date reflect the growing demand for these types of investments and we expect alternatives broadly, and private markets specifically, to take up a greater part of institutional investors’ allocation in future.”
The fund has a four year lock in, after which it will provide it points of liquidity on yearly basis for investors to reap some of the returns in cold hard cash.
The fund will be available for other investors to join over the next 6 to 12 months.
The fund will be able to invest into the different asset classes as when the opportunities arise, maintaining flexibility and diversification.
DevDosh Ltd give some conclusion for the moral of the story is more and more savvy investors are turning to the alternative investment market to find genuine opportunity in tangible products or services that can make realistic returns, safely, based on sound principles of economics rather than conjecture and hearsay of investment firms.
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