BlackRock has launched its Global Unconstrained Equity Fund (GLUE) in Hong Kong and Singapore, offering a concentrated and high-conviction long-term portfolio that is not constrained by benchmarks, sectors, countries or factors.

The fund invests in equity securities that have viable competitive advantages and the potential to produce competitive long-term capital growth.

“Great businesses that can sustain high returns over very long periods are rare but may offer significant outperformance. Our unconstrained, high conviction and long-term approach helps us find outperformance and capital growth where few others are looking,” says Alister Hibbert, portfolio manager and co-founder of the BlackRock Global Unconstrained Equity strategy.

Managed by BlackRock’s portfolio managers Alister Hibbert and Michael Constantis, the Global Unconstrained Equity strategy was first launched in 2020 with the conviction to be benchmark-agnostic, highly selective and invested for the long term.

Using fundamental research to identify high-conviction ideas, GLUE currently invests in 20 to 30 companies that demonstrate resilience and strong potential to sustain high returns over time.

These companies could be from anywhere in the world and in any industry, but they need to satisfy certain attributes, including an established market position, addressable market opportunity, high margins and returns, and strong management teams, BlackRock says.

By cutting out the complexities of traditional benchmarks, geographic and sector constraints, and short-term market noise when selecting the fund’s investments, GLUE seeks to allocate capital to align with the long-term investment goals of investors.

“Over the last few years, Asia-Pacific investors have had to weather numerous periods of short-term volatility. GLUE offers the opportunity to look through these and focus on companies’ long-term earnings power, without constraints, and seeks to help our clients achieve their financial goals,” says Joseph Williams, head of strategy for strategic equity and fundamental equity hedge funds.