Multi-asset strategies and solutions for the long term

Capital at risk. All financial investments involve an element of risk. Therefore, the value of the investment and the income from it will vary and the initial investment amount cannot be guaranteed.

Risk: Diversification and asset allocation may not fully protect you from market risk.

*While proprietary technology platforms may help manage risk, risk cannot be eliminated.

Client Objective

The client has a Defined Contribution (DC) distribution platform for investment and client servicing of DC schemes. They sought a cost-effective, differentiated default DC offering from a specialist provider who could evolve the proposition over time (for example by incorporating sustainability components).

BlackRock Solution

BlackRock developed a bespoke default DC solution comprised of four risk-managed multi-asset portfolios based on a proprietary glidepath. This has been implemented via tax-efficient index building blocks with strong ESG credentials. This solution is highly scalable and has been refined and evolved over time.

Case studies are for illustrative purposes only; they are not meant as a guarantee of any future results or experience, and should not be interpreted as advice or a recommendation.

The Environmental, social, and governance (ESG ) considerations discussed or incorporated herein may affect an investment team’s decision to invest in certain companies or industries from time to time. Results may differ from portfolios that do not apply similar ESG considerations to their investment process. Note: ESG considerations are evaluated alongside a number of other considerations, and/or would not be the sole considerations or factors when making investment decisions. There is no guarantee that any investment strategy, ESG or other strategy will be profitable.

BlackRock as of September 25, 2023.

Client Objective

As the client’s DB scheme matured, their objective was to maintain strong performance and stability, while reducing key-person risk and streamlining governance requirements.

BlackRock Solution

BlackRock developed a bespoke solution for the client, which focused on desired outcomes for the scheme members:

• Strengthened risk oversight at an important stage for the scheme.
• Open architecture investment approach maintained.
• Maintain portfolio efficiency with a lower-risk portfolio through economies of scale, reducing fees, and provision of an appropriate alternative assets solution.
• More robust governance supported by BlackRock’s expert specialist teams, including evolved ESG policy integration.

Case studies are for illustrative purposes only; they are not meant as a guarantee of any future results or experience, and should not be interpreted as advice or a recommendation.

The Environmental, social, and governance (ESG ) considerations discussed or incorporated herein may affect an investment team’s decision to invest in certain companies or industries from time to time. Results may differ from portfolios that do not apply similar ESG considerations to their investment process. Note: ESG considerations are evaluated alongside a number of other considerations, and/or would not be the sole considerations or factors when making investment decisions. There is no guarantee that any investment strategy, ESG or other strategy will be profitable.

BlackRock as of September 25, 2023.

Client Objective

The client’s primary objectives were twofold: they wished both to evolve their default allocation and to simplify how outcomes were presented to scheme members.

BlackRock Solution

Working closely with the client, platform and the consultant, BlackRock developed a glidepath, launched locally domiciled alternative investment funds, and delivered a structured solution for the client. Diversified custom DC portfolios are blended to provide target date funds all the necessary sophistication under the hood while simplifying its presentation to the scheme members.

As the scheme continues to grow, BlackRock continues its close relationship with the client to evolve the asset allocation over time.

Case studies are for illustrative purposes only; they are not meant as a guarantee of any future results or experience, and should not be interpreted as advice or a recommendation.

The Environmental, social, and governance (ESG ) considerations discussed or incorporated herein may affect an investment team’s decision to invest in certain companies or industries from time to time. Results may differ from portfolios that do not apply similar ESG considerations to their investment process. Note: ESG considerations are evaluated alongside a number of other considerations, and/or would not be the sole considerations or factors when making investment decisions. There is no guarantee that any investment strategy, ESG or other strategy will be profitable.

BlackRock as of September 25, 2023.

Client Objective

The client chose BlackRock to redesign their investment program to better align with their objectives and spending policies.

BlackRock Solution

BlackRock designed a new strategic asset allocation based on the client’s goals, our own capital market assumptions and an optimal mix of private market assets. This included developing custom hedge-fund and private-equity programs bespoke to the client. These programs provide the client with efficient manager access, preferential terms, and broadly diversified investment exposure.

This strategic partnership continues, with BlackRock advising the endowment’s internal investment team, supporting them in relationships with third-party managers and offering both economies and opportunities of scale.

Case studies are for illustrative purposes only; they are not meant as a guarantee of any future results or experience, and should not be interpreted as advice or a recommendation.

The Environmental, social, and governance (ESG ) considerations discussed or incorporated herein may affect an investment team’s decision to invest in certain companies or industries from time to time. Results may differ from portfolios that do not apply similar ESG considerations to their investment process. Note: ESG considerations are evaluated alongside a number of other considerations, and/or would not be the sole considerations or factors when making investment decisions. There is no guarantee that any investment strategy, ESG or other strategy will be profitable.

BlackRock as of September 25, 2023.