This section includes investor type descriptions for professional clients and market counterparties.
Professional client
A Professional Client is either: (i) a ‘deemed’ professional client; (ii) serviced-based professional client; or (iii) an assessed professional Client
(i) Deemed Professional Client
A person is a “deemed” professional client if the person is:
(ii) Service-based Professional Clients
A person is a ‘serviced-based’ professional client if
(iii) Assessed-based Professional Clients
Assessed-based professional clients can be either (i) individuals; or (ii) undertakings
Individuals
An individual (and associated joint account holders) would be classified as an ‘assessed-based professional client’ if:
Where there is a joint account in place, the secondary account holder must obtain confirmation in writing that investment decisions relating to the joint account are made for or on behalf of the secondary account holder
Undertakings
Undertakings, which are generally not individuals, would be classified as ‘assessed-based’ professional clients if it:
Market counterparties
A Market Counterparty is any person who is either:
Capital at 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.
The current regime of heightened macro and market volatility has increased dispersion within credit markets. This can create more opportunities for skilled managers to identify and capitalise on specific sectors, like high yield and emerging market debt, where active strategies can deliver greater returns.
EMD is back on the radar with alpha opportunities, compelling yields and a reasonably positive outlook. But despite its advantages, many multi-asset portfolios hold much less than they should.
Two of our systematic fixed income leaders suggest it’s an opportune moment to rethink bond portfolio construction. With evolving fiscal policies, geopolitical tensions, and the impact of flouted rules, the effectiveness of longer-dated issues as hedging tools is being challenged. It may be wise to consider a shorter-term approach.
With pre-election volatility looming, we still prefer euro-denominated credit over its US equivalents. Euro high yield has an enviable yield cushion, and the BBB-BB bucket within investment grade looks strong. That said, beware the potential for large single-name shifts: careful selection is key.
As a global investment manager and fiduciary to our clients, our purpose at BlackRock is to help everyone experience financial well-being. Since 1999, we've been a leading provider of financial technology, and our clients turn to us for the solutions they need when planning for their most important goals.
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