BlackRock expands its range of fixed maturity bond funds
7 MAR, 2025
BlackRock continues to expand its offering in the fixed income segment with a predefined maturity, announcing the launch of the BGF Euro High Yield Fixed Maturity Bond Fund 2028. The new fund fits into the company's strategy of offering investment solutions in bonds with interesting yields and active risk management.
Fixed maturity High Yield funds offer investors an interesting potential return, thanks to a diversified portfolio of carefully selected bonds. Through our active and selective management approach, investors can achieve potentially higher returns, benefiting from the active selection of the management team, seizing the best opportunities offered by the high yield market.
Jose Aguilar, Head of European High Yield and Long Short Credit Strategies at BlackRock.
A consolidated success in the high yield segment
The launch of the new fund follows the success of the BGF Euro High Yield Fixed Maturity Fund 2027, introduced in September 2024, which achieved the highest collection of high yield assets in the cross-border EMEA market in the last five years. This result demonstrates the strong interest of investors in instruments that combine high yield and active credit management.
The 2028 fund aims to generate income through a diversified portfolio of high-quality government bonds and carefully selected high yield securities. In addition, to enhance returns and optimize risk management, the fund uses derivative instruments such as credit default swaps (CDS).
Active management and opportunities in the bond market
The BGF Euro High Yield Fixed Maturity Bond Fund 2028 is managed by BlackRock's European High Yield team, which adopts an active approach based on fundamental research. This strategy allows for a more granular selection of instruments, exploiting rating and price inefficiencies. The fund also benefits from the team's experience, gained through various economic cycles, and from BlackRock's robust bond platform, which currently manages 3,000 billion dollars in assets.
The bond market continues to offer significant opportunities for active management, thanks to the presence of discrepancies in the quality of securities, even among issuers with the same rating. The high yield segment remains interesting, supported by solid corporate fundamentals, a growing convergence with investment grade, and moderate default rates.
Since 2023, BlackRock has launched four fixed maturity funds in EMEA, covering both the investment grade and high yield segments, strengthening its position as a leader in bond asset management.
