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.
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 financial product or to adopt any investment strategy.
Major geopolitical events across the globe coupled with inherent uncertainty on how economies and markets might recover from the Covid-19 crisis are permanently altering the investment landscape. This is not about predicting outcomes, but instead focusing on building portfolios that aim to be resilient to such market shocks. BlackRock believes:
It is important to recognise uncertainty in future estimates of asset returns, and to ensure a more robust approach to optimisation for building portfolio resilience against an uncertain future. | |
Structural portfolio resilience is much more than just relying on broad asset class correlations, or buying gold, or moving into cash – it is making sure the portfolio is well positioned at a more granular level to the underlying trends. | |
Portfolios must be built in a way that is adaptable enough to react as events unfold. Product selection need to be geared towards ‘adaptable’ instruments which bring high degrees of liquidity, operational efficiency and granularity in term of exposures. We continue to see blending of alpha-seeking, factor and index strategies as the way forward. |
Risk: There can be no guarantee that the investment strategy can be successful and the value of investments may go down as well as up.
A fireside chat with Rachel Lord, BlackRock Head of EMEA, discussing critical lessons learned during the pandemic and her outlook on the industry across Europe.
A conversation with Pierre Sarrau, CIO of Multi-Asset Strategies and Solutions.
2 min video
A panel session with Stephen Cohen, Head of EMEA iShares.
2 min video
Continued trends of low or negative yields in global bond markets combined with challenging correlations between traditional equities and fixed income has put alternatives into greater focus. In our view, choosing the right alternatives strategy requires a whole portfolio approach. As investors increasingly invest in the technology that enables them to gain greater clarity on how alternatives are interacting alongside the rest of their portfolio, alternatives are becoming less of an alternative and more of an essential when constructing any portfolio.
An expert panel including Jim Barry, CIO of Alternatives and Global Head of Real Assets.
2 min video
*BlackRock Portfolio Consulting Team, from January 2018 – May 2020.