BlackRock's Richard Davis talks to Joanna Faith about the motivation behind the recent launch of his World Resources Income fund and his outlook for the commodities sector following the recent sell-off.
What was the motivation behind launching the strategy? The main incentive was the demand for income. With interest rates so low and as you do not earn much on a bank account these days, people are looking elsewhere to generate an income. Why world resources for income? Commodity prices are at decent levels and companies in the space are earning a lot of money. One trend we have seen recently is that more of this money is being retuned to shareholders in the form of a dividend. Does the nature of the fund make it a high-risk play? This fund invests in energy, mining and agriculture...
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