BLACKROCK INVESTMENT INSTITUTE

Portfolio construction

Sustainable CMAs

Launching climate-aware CMAs and portfolios

We believe climate risk is investment risk. That is why we are incorporating it into our portfolio design, an integral part of a series of actions BlackRock is taking to prepare for a net-zero world.
Capital market assumptions
Our capital market assumptions show our return expectations across asset classes.
Capital market assumptions
  • All
  • Climate change
  • Private markets
  • Fixed income
  • Portfolio design
  • Climate change

    Sustainability: The tectonic shift transforming investing

    A commonly held view is that a return sacrifice is needed when adopting sustainable investing. We disagree - and in fact believe the opposite is true.
  • Portfolio design

    Building strategic asset allocations

    We launch four, investor-specific strategic asset allocations that take into account our lower expected returns across asset classes, and each investor type’s typical objectives.
  • Portfolio design

    Multiple return pathways

    Our CMAs give a view of returns over an entire horizon - a term structure. Our use of uncertainty creates a range of potential return pathways.
  • Portfolio design

    Understanding uncertainty

    Building resilient, investor-specific portfolios requires a shift away from point estimates for returns. That is why we explicitly include uncertainty into our return projections.
  • Portfolio design

    Blending alpha and factor returns

    Blending alpha-seeking and index products has become more challenging as the number of indices has increased and factor strategies have emerged.
  • Private markets

    The core role of private markets

    Private markets play a core role in modern portfolios. We show how many institutional investors have room for relatively large allocations to private markets.
  • Fixed income

    Rethinking the role of government bonds

    Worries that interest rates in regions such as the euro area and Japan are hovering around what we perceive as their prevailing lower bound force a rethink of the starting point for government bond allocations.
  • Portfolio design

    Readying for real resilience

    The Covid-19 shock turned on its head the economic trajectory that markets had priced in before the pandemic, precipitating an urgent need to revisit strategic asset allocation.
A new playbook for higher inflation
Positioning portfolios for a regime shift to higher medium-term inflation.
Portfolio perspectives - sustainability