
Client Insight Unit (CIU)
CIU overview
The Client Insight Unit (CIU) provides institutional clients with multi-asset portfolio construction expertise, focusing on solutions comprising both public and private markets. We analyze portfolios using the Aladdin® platform to help optimize around specific outcomes and model allocation changes and potential portfolio impacts.
In addition to the bespoke portfolio analyses, we perform peer studies that deliver holistic views of the landscape to help investors analyze the strategic choices of peers and how to position portfolios to achieve desired outcomes.
Quick insights
How we partner with institutions on in-depth portfolio analyses to help achieve a variety of investment objectives.
Quick convos
Quick conversations with BlackRock market experts on trending investment topics.
Case studies
Portfolio re-allocation case study
In this study, we had the following client objectives:
- Increase expected returns of the portfolio
- Improve overall portfolio efficiency
BlackRock partnered with the client to evaluate different portfolio mixes and the resulting impact based on forward looking capital market assumptions. The analysis helped identify areas to help improve the portfolio’s expected return while reducing the expected risk profile.
Allocation (left) and Expected risk and return (right)

Risk decomposition (left) and Return per unit of risk (right)

Source (top and bottom image): Ex-ante risk is defined as annual expected volatility and is calculated using data derived from portfolio asset class mappings, using the Aladdin portfolio risk model. This proprietary multi-factor model can be applied across multiple asset classes to analyze the impact of different characteristics of securities on their behaviors in the market place. In analyzing risk factors, the Aladdin portfolio risk model attempts to capture and monitor these attributes that can influence the risk/return behavior of a particular security/asset. For additional details see the Risk Factor Glossary at the end of this presentation. For details regarding the indexes used to represent each asset class, see the "Capital Market and Modeling Assumptions" slide at the end of this presentation. Expected returns are based on BlackRock's 10-year capital market assumptions. There is no guarantee that the capital market assumptions will be achieved, and actual risk and returns could be significantly higher or lower than shown. Source: BlackRock, as of September 2021.
Portfolio simulations case study
In this study, we had the following client objectives:
- Calibrate the level of risk and illiquidity in the portfolio
- Take advantage of different risk premia to improve performance over time
BlackRock partnered with the client to analyze historical information to help determine a risk budget. Based on the client’s liquidity needs, BlackRock examined various portfolios across thousands of simulated paths to help improve the expected return profile over time.
Historical balances (left) and forward simulations (right)

Historical balances provided to BlackRock by Client in July 2021. BlackRock does not verify the accuracy of the data. Source: BlackRock as of May 2021, Expected risk and return are based on BlackRock’s long-term capital market assumptions (see Appendix). The market simulations are estimated using BlackRock’s Capital Market Assumptions and a 30,000-simulation, 20-year Monte Carlo engine. No representation is made as to the accuracy or completeness of the scenario analysis shown on this page or the validity of the underlying methodology. The above hypothetical performance is shown for informational purposes only. It not meant to represent actual returns of, or meant to be a prediction or projection, of any fund or portfolio. The scenario analysis should not be relied upon in connection with any investment decision. No representation is made that a client account will achieve results similar to those shown, and performance of actual client accounts may vary significantly from the hypothetical results. For details on the allocations used, please see “Capital Market and Modeling Assumptions” at the end of this presentation. The above hypothetical performance does not include any alpha assumptions.
Scenario analysis case study
In this study, we had the following client objectives:
- Understand the stress performance impact of historical and hypothetical economic environments.
BlackRock partnered with the client to analyze portfolios and their impact in different market driven scenarios. The analysis helped the understand the tradeoffs of different investments under extreme financial conditions.
Portfolio stress profit and loss (%)

For illustrative purposes only. No representation is being made that any account, product or strategy will or is likely to achieve results similar to those shown. Historical scenarios simulate each plan’s current portfolio through historical time periods. Hypothetical scenarios simulate each plan’s current portfolio through hypothetical large market shocks and geopolitical stresses, with implied shocks. Scenario analysis is performed by parametrically shocking the underlying risk factor exposures of the portfolios by a set of instantaneous changes to those factors and deriving the resulting hypothetical return. The total return in the scenario is expressed as a hypothetical percentage change in value if those shocks were to be realized. The scenario analysis should not be misinterpreted as constituting the actual performance of any portfolios nor should this information be relied upon in connection with any investment decision relating to any product or strategy. Please refer to the "Stress Test Scenarios Methodology, Assumptions and Limitations" slide in the appendix for additional information. Detailed asset class mapping is shown earlier in this presentation and portfolio allocations are mapped to standard BlackRock asset classes used for developing our capital market assumptions. Exposures as of 8/31/2021.
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