Fixed income

For decades, defined contribution participants near or in retirement looked to bond funds for safety, moderate growth and income. We believe the historic conditions driving the bond fund bull market have run their course, however, and that means plan sponsors may face challenges meeting their participants’ fixed income needs and expectations.

Today’s DC fixed income menus may need to fill a wider range of objectives. Many plan sponsors have increased credit risk exposure seeking to capture additional return. Others are rethinking their core bond fund approach, introducing increased flexibility and manager discretion to pursue opportunities or control risk. Unconstrained strategies may have even broader flexibility to meet participant needs and expectations, while delivering strategies still benchmarked to the Bloomberg Barclays U.S. Aggregate Bond index.

What is the role of fixed income in your DC investment menu?

Fixed income can play a role in a DC menu, including expanded sources of return and income.

For illustrative purposes only.

BlackRock’ brings robust fixed income expertise, a global platform and focused, consultative approach – backed by Aladdin® risk analytics – to the challenge of helping you define and meet your plan’s fixed income needs. We can customize strategies, or offer key funds for consideration, including:

  • Total return: A core plus strategy designed to seek consistent attractive returns across all market cycles.
  • Strategic income opportunities: An unconstrained strategy designed to seek consistent returns while retaining the general risk profile of conservative fixed income investments.