BSF Global Long / Short Equity Fund

However, you try to dress this up the fund is complex. In simplest terms it uses a process called scientific active equity management to manage downside risk but at the same time aiming to deliver attractive returns

We are facing a different environment in which it is likely to challenge investors’ expectations of future returns. This is driven by the fallout of the global financial meltdown in 2008 where QE is coming to an end (or has come to an end), interest rates will remain lower for some time to come and inflation is expected to be low.

With this background analysts expect after inflation annual returns from cash to be flat, bonds between 0 and 2% and equities between 5 and 7% over the next 5 to 10 years. The challenge for investors is that cash and bonds are perceived to be low risk income producing assets. But with income being received from these asset classes, the capital in real terms will start to fall. Therefore more investors are realising that to generate income and capital growth they need to take more risk. But the reality is that they don’t want to do this because of the risk – catch 22!!

The financial market is responding to this need by developing a raft of different products to respond to this changing environment. Arguable one of the main funds available to retail investors in the UK is the SLI Global Absolute Return Strategy Fund but alternatives are appearing all the time from the likes of Invesco, Threadneedle, Premier, Aviva, GLG and many others.

For investors the strategies employed can be complex and in some cases for little perceived return. However, you could argue that some bond strategies are complex!

One new fund for UK retail investors is the BSF Global Long / Short Equity Fund. This fund was launched in the UK in 2014 but a version has been running in the US for a couple of years and overall BlackRock (who run the strategy) have been managing these strategies for a number of years.

In this update we talked to one of the members of the team to understand why their approach is different and why investors might consider this as an alternative to bonds, and some of the other options in the market.

Fund Facts Morningstar


Please note... is not regulated by the FCA. The information is purely a guide and it is the responsibility of the investor to carry out their own research before making any final decisions. We will ensure that the information is as accurate as possible but we cannot be held accountable for any errors or omissions. No products are sold on this site, nor do we endorse any particular product or investment.

Where there are links to third party sites this is not an endorsement of that site, and we cannot be held responsible for the accuracy of the information on that site.

Where there is reference to performance you should note that past performance is purely a guide and investments can fall as well as rise.

The information on the site belongs to and cannot be replicated or copied without our permission.