BlackRock Inc. has launched three new mutual funds featuring alternative investment strategies for the firm's U.S. retail and high net worth client base.

The funds are designed to provide individual investors with access to strategies that offer non-correlated returns and diversification benefits with the goal of minimizing portfolio volatility and preserving return objectives.

"With the extreme market volatility of recent years, investors are increasingly focused on portfolio construction and have embraced alternative investments as a way to diversify their core holdings," said Frank Porcelli, managing director and head of BlackRock's U.S. retail business.

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The three new mutual funds include:

  • BlackRock Commodity Strategies Fund (BCSAX) is designed to provide investors with complete commodities exposure through commodities futures equities with exposure to natural resources.
  • BlackRock Emerging Markets Long/Short Equity Fund (BLSAX) is fundamentally based and scientifically implemented and uses advanced techniques to identify mis-valuations across stocks and markets in a risk controlled manner.
  • BlackRock Global Long/Short Credit Fund (BGCAX) is an interest rate neutral, global long/short credit fund seeking to generate total returns from credit markets.

BlackRock has been managing alternative investments on behalf of clients for more than 15 years and in 2010 launched BlackRock Alternative Investors to coordinate the firm's alternative investment efforts globally.

"Particularly for investors who are nearing retirement, alternative mutual funds can provide an added layer of portfolio diversification and risk control through multiple market cycles," Porcelli said. "The addition of these funds allows BlackRock to meet the alternative investment needs of a broader range of investors."

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