BlackRock Inc. has recently launched the IPO for a targeted price of $500 million fund of funds which is expected to be traded on LSE or the London Stock Exchange. The interesting part of this fund of funds is that it will aim to give better returns – a whopping 6% returns over the 3 month LIBOR or London Interbank offer rate on an annual basis. Hence, if the 3 month LIBOR rate is at 3%, then the Blackrock Absolute Return Strategies will be expected to generate a 9% returns for that year.
As per the news published in the Wall Street Journal, Absolute Return Strategies will provide investors access to its $11 billion Appreciation Strategy of investing in pools of hedge funds, which it acquired last year as part of its purchase of Quellos Group LLC.
Though there are certain limitations for the applicants, as not everyone from the USA will be allowed to invest in the Blackrock Absolute Return Strategies fund of funds. However, there are about 30 different funds listed in the London Stock Exchange which do not have any such restrictions when it comes to applicants. The Absolute Return Strategies fund would be among the largest listed.
|BlackRock currently manages about $1.3 trillion across their equity, fixed income, cash management, alternative investment and real estate strategies.||Table of Contents|