LTAFs are designed with a diversified approach to alternatives in mind, providing schemes members with access to alternatives throughout the liquidity spectrum.
For many of us, the defined contribution (DC) pot will be the main source of income when we retire. So, getting access to a range of return seeking investments is going to be key to building those pots up.
At BlackRock we believe private markets can help plug the gap in people’s retirement savings. Private markets can tackle areas that are often inaccessible in liquid-only DC portfolios - leading to unique and attractive sources of alpha.
Private markets can be used at each stage of members’ lifecycle depending on the intent
Source: BlackRock as of 30 April 2022. For illustrative purposes only. Subject to change.
The LTAF is the new UK regulated vehicle for long-term assets. The vehicle has been designed with a diversified approach to alternatives in mind, providing schemes members with access to alternatives throughout the liquidity spectrum.
Risk: Diversification and asset allocation may not fully protect you from market risk.
1 ‘Permitted links’ refers to the rules put in place by the FCA that are designed to ensure that if a natural person ultimately bears the investment risk of a unit linked life policy, the underlying assets are appropriate for retail investors. Source: Eversheds Sutherland, UK FCA policy statement on long term assets funds (LTAFs), 29 October 2021.
The figures are for illustrative purposes only and results cannot be guaranteed. There is no guarantee that a positive investment outlook will be achieved. Diversification and asset allocation may not fully protect you from market risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested.
Source: BlackRock, as of 31 December 2022. For illustrative purposes only.
Our Alternatives platform strives to bring DC schemes members quality investments by drawing upon its global footprint, differentiated sourcing, execution capabilities and sustainable commitments.
£267bn1 in client assets and 35+ years of expertise in private markets investing
800+ investment professionals combine with Black Rock Capital Markets
750+ external partners with co-investments capabilities
~9,000 deals reviewed annually2 with a ~5% deployment rate
Source: BlackRock, 30 December 2022, unless otherwise specified. Number of professionals excludes contingent workers and interns.
1 Client assets include AUM and non-fee-paying uninvested commitments (i.e., committed capital/dry powder) from (i) BLK Core Alternatives, which includes Direct Hedge Funds managed across BLK’s investment platform and (ii) liquid credit assets. “Core Alternatives” means the “Alternatives” AUM reported in BLK’s form 10-K and 10-Q, excluding currencies and commodities. All amounts in USD.
2 Blackrock, 31 December 2022, year-end figure.
As a fiduciary, our focus is on understanding and managing investment risk, anticipating our clients’ needs, supporting them in achieving their long-term investment goals. We apply those same principles to sustainability and to the low carbon transition. BlackRock Diversified Alternative Strategies LTAF focuses on managing Environmental, Social and Governance (ESG) risks through integrating ESG considerations in the assessment of its investments.
Our investment approach is informed by three principles:
We apply those same principles to sustainability and the low-carbon transition.
Risk: There is no guarantee that research capabilities will contribute to a positive investment outcome.
We use the industry’s most advanced technology to help ensure that risks are deliberate and members know what they own. Combining the power of Aladdin’s risk analytics and eFront’s private markets data platform allows us to aim:
Risk: While proprietary technology platforms may help manage risk, risk cannot be eliminated.
Claire Felgate explores how in the new landscape funds should include both the active and additive nature of private markets, based on their strength of asset selection, diversification and resilience through economic cycles.
Welcome to the first BlackRock Alternatives Global Private Markets Survey Inside. We detail where institutional investors see the biggest macro risks. Opportunities and what they look for when choosing investment managers.
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