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SUSTAINABLE INVESTING
RESEARCH & INSIGHTS
Supercharged structural trends will change the nature of portfolio diversification. Countries and sectors will make a comeback as diversifiers in a more fragmented world, in our view, offering resilience to real economy trends.
Going private
Growth in private markets, 2000-2019
Source: BlackRock Investment Institute, with data from Preqin, June 2020. Notes: The bars represent the sum of net asset value of closed-end funds as well as dry powder of funds in these asset classes: private equity and venture capital, real estate, private debt, infrastructure and natural resources. The line shows the size of private markets relative to that of public markets.
View our Midyear Outlook in charts
Bottom line: Structural portfolio resilience is much more than just relying on broad asset class correlations in public markets. It’s making sure the portfolio is well positioned for underlying themes.
Strategic implication: We favor sustainable assets, private markets and deliberate country diversification.
Tactical implication: We have increased our overweight in the quality factor and favor assets with policy backstops.