BlackRock has expanded its MyMap range with the launch of an income fund.
The MyMap 4 Select Income fund will use the interest payments received from investing in bonds and dividends from equities to generate income for investors via an actively managed portfolio.
The income fund will be combination of iShares ETFs and index funds and will target a total expense ratio (TER) of 0.28%, making it the most expense offering in the range. The five other funds all have a TER of 0.17%.
It has a 35% weighting to equites and 65% to fixed income with a volatility target of between 6-9%.
Joe Parkin, head of banks and digital channels in the UK at BlackRock, commented: “Due to the impact of COVID-19, many people have reassessed their financial positions over the last 18 months and taken steps to improve their financial health, resulting in an enormous increase in UK household savings with an estimated £1.5trn now sitting in individual bank accounts.
“Investing can play a key role in meeting financial goals allowing people to access not only higher returns than a savings account, but also to mitigate the growing risks that inflation presents to cash deposits.”
Rob Brown, COO at Ludlow Wealth Management, added: “We use a goals-based investment approach with our clients and we are happy to use Blackrock’s MyMap range of funds as part of this strategy.”
Simon Rabin, CEO and founder of personal finance fintech Chip, added: "We're seeing an appetite for the more sophisticated, actively managed funds and a high demand for BlackRock's MyMap 5 Select ESG fund.
"The latter presents some interesting user trends - we're seeing a sharp uptake among our female investors, as they are currently outpacing men when it comes to ethical investing choices."
Launched in May 2019, the MyMap range was widely seen as a move to take on Vanguard’s LifeStrategy strategies and has since amassed $791m assets under management (AUM).
Last year, the BlackRock added the MyMap 5 Select ESG fund to its suite, offering exposure to a selection of ESG themes including climate change, natural resources, pollution and waste, social opportunities and corporate behaviour.
According to BlackRock, the ESG fund has returned 20% since its launch in June 2020 while the entire range has delivered an average return of 13% over the past 12 months and 26% since inception.