BlackRock Launches New Tool to Help Advisors Allocate to Private Markets
The new tool is part of BlackRock’s commitment to increasing accessibility to alternative investments and helping advisors better understand the role alternatives can play in wealth portfolios to address their clients’ needs.
A BlackRock study indicates that the traditional 60/40 portfolio will not only fall short of the moderate returns of the past but may increase investment risk as well. In fact, the study showed that the average advisor portfolio is about 25% more volatile than it was a year ago, even though it has retained the same 60/40 stock/bond split.1
“In today’s low rate world, there is a mismatch between investors’ return expectations and their exposure to private markets,” said
Moving from Problem to Plan
Advisors can help optimize their clients’ portfolio by uploading it into the Expected Return Analyzer. Within seconds, they can see how the portfolio stacks up against targeted return expectations. Based on those results and the advisors’ inputs, the tool suggests alternative exposures that can help meet their needs based on asset allocation, projected performance and volatility. Once a proposed portfolio is selected, advisors can use the Expected Return Analyzer to model how different alternative portfolio allocations can help meet their clients’ investment goals.
The Expected Return Analyzer adds to the suite of tools found on BlackRock’s Advisor Center, which leverages BlackRock’s portfolio construction tools and analysis to help advisors build more resilient portfolios. Individual investors that want to think beyond a traditional 60/40 portfolio should contact their advisor to learn how adding an allocation to private investments can help their portfolio.
BlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information on BlackRock, please visit www.blackrock.com/corporate | Twitter: @blackrock | LinkedIn: www.linkedin.com/company/blackrock
The Expected Return Analyzer tool is for financial professional use only.
IMPORTANT: The projections or other information generated by the tools regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results. Results may vary with each use and over time.
Investing involves risk, including possible loss of principal.
Alternative investments may engage in speculative investment practices which increase investment risk, can be highly illiquid, often are not required to provide periodic prices or valuation, may not be subject to the same regulatory requirements as mutual funds and often employ complex tax structures. Also, some alternative investments have experienced periods of extreme volatility.
This information should not be relied upon as research, investment advice, or a recommendation regarding any products, strategies, or any security in particular. This material is strictly for illustrative, educational, or informational purposes and is subject to change.
The tools, and any data used by the tools, are provided on an "as-is" basis. BlackRock expressly disclaims all warranties, express or implied, statutory or otherwise with respect to the tool (and any data used by the tool and the results obtained from use of the tool) including, without limitation, all warranties or merchantability, fitness for a particular purpose or use, accuracy, completeness, originality and/or non-infringement. In no event shall BlackRock have any liability for any claims, damages, obligations, liabilities or losses relating to the tool including, without limitation, any liability for any direct, indirect, special, incidental, punitive and/or consequential damages (including loss of profits or principal).
1 Source: BlackRock, Aladdin.
2 Source: BlackRock, “An alternative journey.”