modern and sustainable building with plants

Europe – a history of innovation and a future of sustainability

Europe’s vibrant history and record of innovation has led to it being the world’s third-largest economy.1 The region’s expansive population and long-established academic and political institutions have made it home to a multitude of exciting investment opportunities.

1Source: The Balance, May 2021

We have been entrusted to manage €1.9tn on behalf of European clients1, making us one of the leading investment managers in the region. We will continue to invest in research, products, portfolio implementation solutions, and services across the region. And perhaps most critically, we will use our technology, know-how, talent and more than 30 years’ worth of investment expertise to build better portfolios2.

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.

We offer a full range of investment products across multiple investment classes, capitalisations, sectors, and styles, including alpha and index options.

1Source: BlackRock, June 2021.
2Source: BlackRock, December 2020.

European fixed Income

BlackRock has built a substantial European presence in fixed-income investing. Our diverse platform and capabilities cover all manner of European assets, from liquid, high-quality bonds to unique private-debt opportunities.

Risk: Two main risks related to fixed income investing are interest rate risk and credit risk. Typically, when interest rates rise, there is a corresponding decline in the market value of bonds. Credit risk refers to the possibility that the issuer of the bond will not be able to repay the principal and make interest payments.

Multi-Asset solutions

The European Multi-Asset Division uses the core strength of our firm – a collaborative, fundamentally driven investment culture – to create multi-asset solutions that aim to meet the goals of our clients.

Risk: The Fund may invest in a variety of investment strategies and instruments while aiming to be highly diversified in terms of risk and returns. The Fund is therefore directly and indirectly, through its investments, subject to the risks each of these investment strategies and instruments are subject to.

European equities

BlackRock has a multitude of European equity products to help clients pursue their equity-investing goals. We use our diverse capabilities and rigorous process to pursue strong performance.

Risk: The value of equities and equity-related securities can be affected by daily stock market movements. Other influential factors include political, economic news, company earnings and significant corporate events.

Alternatives

We have built a leading alternatives platform that offers access to more complex liquid and illiquid alternative options, including European Long-Term Investment Funds – which are designed to boost investment in the real economy across the continent.

Key investment themes

Across Europe we see five key themes that will impact and drive the future state of investors’ portfolios. These include:
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Positioning for a cyclical rotation:
We believe the economic restart could favour the unloved cyclical sectors that account for a large weighting within European equities.
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The search for income
Credit – particularly high-yield – could offer attractive income potential. A quality approach to equity income focusing on dividend growth could help avoid yield traps.
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Protecting the downside
Short duration and unconstrained fixed-income funds may offer an attractive way to protect portfolios and benefit from volatility in the case of a move higher in yields.
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Building resilience
We favour an approach that goes beyond traditional diversifiers, and offers exposure to real economy trends, quality, secular growth themes, and private markets.
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Future-proofing your investments
The shift to sustainable is a trend which has been supercharged in Europe and shows no signs of stopping.

Sustainable investing in Europe

Our investment conviction is that sustainability and climate-integrated portfolios can provide better risk-adjusted returns to investors. And with the impact of sustainability on investment returns increasing, we believe that sustainable investing is the strongest foundation for client portfolios going forward.

Europe is a global standard bearer in the long-term structural shift towards sustainability, due to economic and social forces as well as a focus from policymakers. The European Green Deal puts sustainability at the heart of the Covid fiscal recovery package, and consumer demand remains buoyant, with Europe recently becoming the number-one region for electric vehicle passenger sales.

The introduction of the Sustainable Finance Disclosure Regulation (SFDR) is a key catalyst for sustainable investing in Europe. We see the standardisation of definitions and concepts as crucial for advancing sustainable investing, with investors seeking increased transparency and data on sustainable risks and opportunities. As a fiduciary investor, we advocate for sound corporate governance and sustainable business practices that result in long-term value creation for our clients. Our investment stewardship team is lead out of Europe, by Sandra Boss, our Global Head of Investment Stewardship. This team’s role is to engage with company management on ESG concerns that threaten corporate value.

Our approach to sustainable investing

Our impact in Europe

We are helping to build savings that will serve a lifetime:

People deserve financial security across their lifetime. As a long-term investment manager, we help millions of Europeans achieve that.

20
years we have been managing money on behalf of Nordic state and occupational pension funds.
100
+ billion of assets entrusted to us to manage on behalf of Nordic clients.

We make investing easier and more affordable:

We know the benefits of investing have been out of reach for too many people. That’s why we are making investing easier and more affordable.

400
+ iShares ETFs registered in the Nordics offering easy access to global and niche markets.
10
is all you need to invest in iShares ETFs and index funds through banks and investment platforms.

We invest for better, more resilient futures:

We invest our clients’ money in companies of all types and sizes in Europe, helping those companies grow and create jobs, which in turn enables the European economy and society to prosper.

125
billion invested in the Nordic region supporting job creation, growth and innovation. 9
500
jobs created by investing in a 47 turbines wind farm on the west coast of Norway. 10

9Source: BlackRock, December 2020

10BlackRock and Guleslettene Wind Farm, December 2020.

We advance sustainable investing:

We advance sustainable investing because our conviction is it delivers better outcomes for investors. Through using 5% of BlackRock’s net revenues from the ICS LEAF series, we offset 120,000 tons of CO2 across Europe helping reduce emissions and fund environmental projects. That’s the equivalent of planting nearly 160,000 acres of forest.11

 

11Source: BlackRock, December 2020

120,000
is the number of tons of CO2 that we offset across Europe in 2020.12
1.5
+billion raised from global investors in sustainable products seeded by Nordic investors.

 12 July 2019 – September 2020

Your team on the ground

Map of BlackRock’s offices in Europe and teams

13 BlackRock, June 2021

We are deeply embedded in Europe, with more than 3,000 employees in 20 offices13 in cities from Athens to Zurich. This gives us local expertise and allows us a more detailed perspective on the areas in which we operate and invest. We share our knowledge, experience, and insights with our clients through our experts on the ground, as shown on the map. These include investment teams, client solutions, technology and thought leadership.

Investment experts

Team Description
Alpha investment Our skilled portfolio managers average 20 years in the industry. Our European Equity team is led by Nigel Bolton, BlackRock’s Global Co-CIO for fundamental equities, and Becci Mckinley Rowe. Our European Fixed Income team is headed by Michael Krautzberger, Head of Fundamental Fixed Income in EMEA.
Alternatives Our local experts seek to find opportunities in hedge funds, private debt, infrastructure and real estate funds.
ETF and index investment Our ETF and index investment professionals are dedicated to providing portfolio building blocks for investors large and small. iShares ETFs make it simple for everyone to invest with efficiency and transparency at a fair price.
BlackRock Sustainable Investing Team dedicated to providing our firm and our clients with a clear picture of the relationship between sustainability issues, risk and long-term financial performance. They act as a central authority on sustainable investing across the investment spectrum.

Client solutions

Team Description
BlackRock Portfolio Analysis and Solutions (BPAS) A team of highly qualified investment consultants who empower clients to gain new perspectives on their portfolios. The team provides clients with the tools and support they need to get closer to their overall portfolio objectives.
Client Portfolios Solutions / Multi-Asset Solutions (CPS / MASS) This team offers clients easy access to fully customisable index and alpha investment capabilities.
Retirement team This team provides direct access to our best thinking on retirement, with insights from our investment and financial-planning professionals.
Capital Markets team This team is responsible for sourcing private investment opportunities, IPOs, and private placements.
Official Institutions Group (OIG) This group partners with central banks, sovereign wealth funds, finance ministries, future generation funds and multi-lateral organizations. It serves as a central point of contact for investment, risk management and advisory services.

Technology

Team Description
Aladdin The world’s biggest investment platform of its kind. Our local experts can help you discover how to use this technology to build better portfolios and lead large scale implementation projects.
Risk: While proprietary technology platforms may help manage risk, risk cannot be eliminated.

Thought leadership

Team Description
BlackRock Investment Institute (BII) This team offers investors insights on long-term asset allocation, the global and local economy, markets and geopolitics.