PORTFOLIO PIONEERS

Keeping you at the forefront of portfolio construction.

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.

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How should you handle higher inflation?

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Rising inflation poses considerable challenges to investors. So, we advocate an immediate review of asset allocation and implementation – with four key steps:

  1. Know your risks
  2. Plan for uncertainty
  3. Redefine resilience
  4. Expand your toolbox

We are embedding these steps in our portfolio-review process. Find out more about the changes we are making to our portfolios to help navigate the higher inflation in an uncertain world.

Proof your portfolio against inflation

Explore our solutions

Where do we go from here?
Many factors could cause markets and policymakers to misread inflation. Among them are the economic restart, new Covid variants, supply-driven inflation and new frameworks for monetary policy. We look at the ways in which central banks could react to the full range of market-driven scenarios – and assess how investors should respond.
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Keeping our eyes on the horizon

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The economic restart and Russia’s invasion of Ukraine have heightened the risks of confusion and policy mistakes that have weighed on equity markets this year. We now know what we are contending with: the start of a protracted stand-off between Russia and the West. We are tactically upgrading equities as we see greater clarity on the Ukraine conflict and reduced risk of central banks slamming the brakes to curb inflation.

Dig into our strategic thinking >

Building portfolios to fight inflation
Building more inflation-resilient portfolios warrants a diversified and dynamic approach – taking in a range of assets and adapting as circumstances change. The implication of policy responses to Covid-19 is that bonds may be a less effective source of diversification in high inflationary environments.
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What could go wrong?
Over the past 18 months, our key convictions have worked well overall. Despite strong recent performance we favour an overweight in developed-market (DM) equities, an underweight in DM nominal government bonds and an overweight in inflation-linked bonds. We have stress-tested our views to gauge what changes in outlook would alter asset preferences.
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Navigating towards net zero

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At our recent Portfolio Constructors’ Series virtual event, our in-house leaders, researchers and portfolio builders shared examples of:

  1. Research - key findings from our latest BlackRock Investment Institute (BII) research into "Managing the net zero transition".
  2. Portfolio construction - challenges of building forward-looking climate-aware portfolios in a world of traditionally backward-looking data.
  3. Tools and analytics - how we are working with clients to define, design and implement sustainable solutions.

Watch on-demand >

Let BlackRock help you tackle inflation
Our specialist teams can help you position for the new inflationary environment. With a full spectrum of portfolio-consulting services, from portfolio optimisation to ESG analysis, you keep control of asset allocation and implementation – while benefiting from BlackRock’s expertise in risk and investment management, technology and research.
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