Because Your Goals Are Bigger Than a Benchmark

The investing world has changed since 2008 — and so have investors’ expectations. A distrust of markets in a post-crisis world has engendered skepticism around the benchmarks that measure them. Beating a market average no longer implies investment success.

Investors are increasingly measuring an investment’s merit by its ability to help them meet their financial goals — whether that be to generate an income stream, preserve capital or grow assets within a certain risk profile. BlackRock is meeting the challenge by offering investment strategies that set their sights beyond benchmarks, instead aiming for the outcomes — the real results — that matter most to investors.

Highlights

  • Market benchmarks were not conceived to specifically address investor challenges.
  • “Unconstrained” strategies that seek an outcome without the limitations of a single broad-benchmark are an attractive alternative to the traditional approach.
  • Changes in the fixed income market created two challenges: increased interest rate risk and limited income potential. BlackRock offers options to address both.
  • Global multi-asset strategies, meanwhile, aim to address the investor need for growth with less volatility — without the constraints of any one benchmark.

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Unconstrained Defined Graph

The stated investment preferences are the opinions of the authors and do not reflect individual investors' risk and return goals. Individual investors should consult with their financial professional about how to implement these opinions in a portfolio that is suitable for their goals and risk tolerance. These views do not necessarily reflect the investment decisions made within specific BlackRock portfolios. This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expressed are as of June 26, 2014, and may change as subsequent conditions vary. Individual portfolio managers for BlackRock may have opinions and/or make investment decisions that, in certain respects, may not be consistent with the information contained in this report. The information and opinions contained in this material are derived from proprietary and nonproprietary sources deemed by BlackRock to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. Past performance is no guarantee of future results. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this material is at the sole discretion of the reader.

Investing involves risk, including possible loss of principal.

Stock and bond values fluctuate in price so the value of your investment can go down depending on market conditions.

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, in concentrations of single countries or smaller capital markets. Frontier markets involve heightened risks related to the same factors and may be subject to a greater risk of loss than investments in more developed and emerging markets.

Bond values fluctuate in price so the value of your investment can go down depending on market conditions. The 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 make principal and interest payments.

There may be less information on the financial condition of municipal issuers than for public corporations. The market for municipal bonds may be less liquid than for taxable bonds. Some investors may be subject to federal or state income taxes or the Alternative Minimum Tax (AMT). Capital gains distributions, if any, are taxable.

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