Hi, my name is Michael Gates and I am the lead portfolio manager for the Target Allocation
model series.
Our team has designed these portfolios to help you achieve your financial and life goals. The
models we build aim to achieve one simple outcome - delivering you a portfolio that generate
superior returns to its benchmark.
So we are seeking to get you a great return. To do that we are mindful of risk, and look to make
the most of diversification. We try to stay focused on delivering consistent performance relative
to the benchmark so that you know how your models are positioned.
In the last few years, markets have been crazy. They change quicker than ever, and the drivers
of that change have become even harder to predict. The models are not built in a set it and
forget it fashion. I’m an active and our job is to get you the performance you’re seeking without
sacrificing that risk-first approach.
The beauty of working at BlackRock is that we have so many tools at our disposal, including
iShares ETFs. These vehicles are tax efficient, low cost and offer precise exposures, allowing us
to identify areas of the market that we think have the potential to outperform.
One of the other tools we rely on is BlackRock’s risk platform, Aladdin. The portfolios we’re
building are powered by Aladdin and our team uses over 30 market signals and indicators that
all complement each other, to try and distill the world down into one investment view.
Our team has one of the longest track records in the model portfolio industry.
Target Allocation models come in a variety of forms. Some are built strictly using ETFs. Others
include mutual funds and liquid alternatives. We have ESG-focused models. We have tax aware
models. Think of the as one investment team, providing multiple approaches to best suit your
investment needs.
We’re committed to help you successfully navigate the next decade’s markets.
I’m Michael Gates and this is Target Allocation.
Carefully consider the BlackRock and iShares Funds within the model portfolios' investment
objectives, risk factors, and charges and expenses before investing. This and other information
can be found in the Funds' prospectuses or, if available, the summary prospectuses which may
be obtained by visiting www.iShares.com or www.blackrock.com. Read the prospectus carefully
before investing.
Investing involves risk, including possible loss of principal. Asset allocation and diversification
may not protect against market risk, loss of principal or volatility of returns.
The BlackRock model portfolios are provided for illustrative and educational purposes only. The
BlackRock model portfolios do not constitute research, and are not personalized investment
advice or an investment recommendation from BlackRock, and are intended for use only by a
third party financial professional, with other information, as a resource to help build a portfolio
or as an input in the development of investment advice for its own clients. The BlackRock model
portfolios themselves are not funds.
Fixed income risks include interest-rate and credit risk. Typically, when interest rates rise, there
is a corresponding decline in bond values. Credit risk refers to the possibility that the bond
issuer will not be able to make principal and interest payments. International investing involves
risks, including risks related to foreign currency, limited liquidity, less government regulation
and the possibility of substantial volatility due to adverse political, economic or other
developments. These risks often are heightened for investments in emerging/developing
markets and in concentrations of single countries. Funds that concentrate investments in
specific industries, sectors, markets or asset classes may underperform or be more volatile than
other industries, sectors, markets or asset classes and the general securities market.
A fund's environmental, social and governance (“ESG”) investment strategy limits the types and
number of investment opportunities available to the fund and, as a result, the fund may
underperform other funds that do not have an ESG focus. A fund's ESG investment strategy may
result in the fund investing in securities or industry sectors that underperform the market as a
whole or underperform other funds screened for ESG standards. In addition, companies
selected by the index provider may not exhibit positive or favorable ESG characteristics.
Alternative investments present the opportunity for significant losses and some alternative
investments have experienced periods of extreme volatility. Alternative investments may be less
liquid than investments in traditional securities.
Actively managed funds do not seek to replicate the performance of a specified index. Actively
managed funds may have higher portfolio turnover than index funds.
This material is provided for educational purposes only and does not constitute investment
advice. The information contained herein is based on current tax laws, which may change in the
future. BlackRock cannot be held responsible for any direct or incidental loss resulting from
applying any of the information provided in this publication or from any other source
mentioned. The information provided in this material does not constitute any specific legal, tax
or accounting advice. Please consult with qualified professionals for this type of advice.
The information and opinions contained in this material are derived from proprietary and
nonproprietary sources deemed by BlackRock to be reliable, but are not guaranteed as to
accuracy.
The BlackRock and iShares Funds within the model portfolios are distributed by BlackRock
Investments, LLC (together with its affiliates, “BlackRock”). BlackRock Fund Advisors, an affiliate
of BlackRock Investments, LLC, is a registered investment adviser.
©2021 BlackRock, Inc. All rights reserved. iBONDS, ALADDIN, iSHARES and BLACKROCK are
trademarks of BlackRock, Inc., or its subsidiaries in the United States and elsewhere. All other
marks are the property of their respective owners.
