LTAFs are designed with a diversified approach to alternatives in mind, aiming to improve member outcomes on both return and risk
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
Research in this document has been produced and may be acted on by BlackRock for its own purposes. The views expressed do not constitute investment advice and are subject to change. While the investment approach described herein seeks to control risk, risk cannot be eliminated. For illustrative purposes only.
Source: BlackRock, as of 9 April 2024.
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, aiming to improve member outcomes on both return and risk
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.
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, illustrative % allocations as of 30 September 2023. For illustrative purposes only and subject to change.
Experience & expertise across proven investment strategies
£261bn1 Alternatives platform with 35yrs experience across Private Equity, Private Credit, Real Assets and Multi-Alternatives. Supported by the Aladdin and eFront technology platform.
Operational, structuring and implementation capabilities
DC-focused product design using BlackRock’s enhanced valuation model. Implementation via Direct, Co-investments and Funds.
Differentiated sourcing selects high-quality deals across market cycles
9,000 deals sourced annually with 5% investment rate. Through the power of our reputation, and sourcing network that includes over 1000 external managers.2
Deep and diversified approach to sustainability
Sustainability is considered across allocation, strategy, and deal selection. Investments aim to deliver specific sustainable outcomes
There is no guarantee that a positive investment outlook will be achieved. Diversification and asset allocation may not fully protect you from market risk.
1. Source: BlackRock. Assets under management as of 30 September 2023 unless otherwise specified. Alternatives AUM may include committed capital, in addition to invested capital, which remains subject to drawdown. BlackRock Alternatives publishes AUM figures in US Dollars. The figures were converted in GBP using December 2022 exchange rate from HMRC. All amounts in GBP. Number of professionals excludes contingent workers and interns. 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. Assets include Hedge Fund Solutions and Direct Hedge Funds across BLK’s investment platform.
2. Source: 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.
The investments in the LTAF will focus on managing ESG risks through integrating ESG considerations in their assessment of investments. The Fund may have investments that can support sustainable investment themes such as the transition to a low carbon economy and targeting other Sustainable Themes such as Health and Wellbeing. The Fund does not have any ESG objectives in addition to, or as part of, its financial objectives and accordingly, neither the Manager nor the Investment Manager make any commitment as to any ESG outcomes, impact or the sustainability profile of the Fund's portfolio. Diversification and asset allocation may not fully protect you from market risk. There is no guarantee that a positive investment outcome will be achieved. ESG exposure is for illustrative purposes only.
Source: BlackRock, as of 30 September 2023. For illustrative purposes only, subject to change. *as % of total portfolio.
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.
Fund specific risks
Counterparty Risk The insolvency of any institutions providing services such as safekeeping of assets or acting as counterparty to derivatives or other instruments, may expose the Fund to financial loss.
Liquidity Risk The Fund’s investments may have low liquidity which often causes the value of these investments to be less predictable In extreme cases, the Fund may not be able to realise the investment at the latest market price or at a price considered fair.
Fixed income risk Two main risks related to fixed income investing are interest rate risk and credit risk Typically, when interest rates rise, there is a corresponding decline in the market value of bonds Credit risk refers to the possibility that the issuer of the bond will not be able to repay the principal and make interest payments.
Equity risk The value of equities and equity related securities can be affected by daily stock market movements Other influential factors include political, economic news, company earnings and significant corporate events.
Funds Investing in Multiple Strategies The Fund may invest in a variety of investment strategies and instruments while aiming to be highly diversified in terms of risk and returns The Fund is therefore directly and indirectly, through its investments, subject to the risks each of these investment strategies and instruments are subject to.
Investment in collective investment schemes The price of underlying funds changes regularly depending on the performance of the assets held by the underlying funds which in turn may affect the value of your investment
Real Estate securities Investments in real estate securities (including securities listed by Real Estate Investment Trusts ( can be affected by the general performance of stock markets and the property sector In particular, changing interest rates can affect the value of properties in which a property company invests Investing in real estate securities is not equivalent to investing directly in real estate and the performance of real estate securities may be more heavily dependent on the general performance of stock markets
Infrastructure securities Investment in securities and instruments of infrastructure companies can be affected by the general performance of the stock market and the infrastructure sector In particular, adverse economic or regulatory occurrences including high interest costs in connection with capital construction programmes, high leverage, changes in and/or costs associated with environmental and other regulations, the effects of economic slowdown, surplus capacity, increased competition from other providers of services, uncertainties concerning the availability of fuel at reasonable prices, the effects of energy conservation policies and other factors can affect the value of infrastructure securities Investing in infrastructure securities is not equivalent to investing directly in infrastructure and the performance of these securities may be more heavily dependent on the general performance of stock markets.
Lending If the Fund invests in loans in which it has a direct contractual relationship with the borrower, there are additional risks involved For example, if a loan is foreclosed, the Fund could become part owner of any collateral, and would bear the costs and liabilities associated with owning and disposing of the collateral.
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