Laying the foundations of a successful portfolio

BlackRock’s MyMap range of multi-asset funds aim to provide a core investment that is risk-managed, cost-effective and helps your client’s do more with their money.

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.

MyMap is all about providing a core portfolio that is low-cost, risk-aware and easy to understand.

Core investments are the foundation of any portfolio
They should offer steady growth over a long period of time and an appropriate level of risk. We believe they need to be there in good times and bad, when financial markets are up and when they are down. At BlackRock, we know offering core investments to our clients carries with it a great responsibility.

Do more with your core investment

There are several reasons why we believe MyMap may be a suitable investment for your clients:

Low-cost access to key stock and bond indices

We invest in low-cost exchange-traded funds (ETFs) that track the performance of stock and bond indices. Investing in ETFs is significantly cheaper than investing in active managers, who pick stocks based on their own investment philosophy and research.1

This allows us to charge just 0.17% in fees, meaning more of our clients’ money can be invested in the markets – as less of the principle is exposed to fees. It also leaves excess capital to invest in other funds – especially more specialist active investment with certain thematic exposures, such as specific industries, regions or asset classes.

Actively managed ETF exposure

As an active manager of passive ETF investments, we still give investors access to the breadth and depth of BlackRock’s investment expertise. Our experienced managers aim to maximise return potential when opportunities arise, while adhering to a set level of risk.

1Morningstar European Fee Study report, December 2020

Active management that seeks to control the risk/return profile of your clients’ portfolios

Unlike a portfolio that is split equally between equities and bonds, we rebalance your client’s portfolios as the levels of volatility in the market change.

allocationvolatillity risk

volatillty riskallocation

Source: BlackRock, 1 March 2021
For illustrative purposes only – not calculated using market data.

High levels of liquidity

Liquidity has been on the minds of many investors over the past year. When the Covid-19 crisis began at the beginning of 2020, many found it difficult to withdraw money from their investments.

One of the benefits of the MyMap range is that ETFs are very liquid funds. Because they only invest in stocks and bonds listed on an index, they tend to be exposed to securities that are owned by large numbers of investors and therefore traded regularly.

If an investor’s core investment is in a product they know to be liquid, it frees them to invest in less liquid areas of the market. For example, this could include putting some capital in property and drawing an attractive income. Such an investment cannot be easily sold, but investors will be safe in the knowledge that their core holding – where a significant amount of their savings are invested – can be more easily liquidated.

Risk-adjusted portfolio construction

Each of our MyMap funds has a predefined volatility band, which is vital to pursuing the right balance of risk and return potential – one that reflects every investor’s financial position and investment goals. 

current allocation of range

Source: BlackRock, as at 31 December 2020. Please note, figures may not add up to 100% due to rounding and may be subject to change in the future. For illustrative purposes only.

Risk: Diversification and asset allocation may not fully protect you from market risk.

In summary: We believe MyMap allows your clients to do more with their portfolios

Our active management of low-cost ETF investments is designed to fit multiple risk-return profiles, helping clients better manage their finances and wider investment portfolio. By using the MyMap funds as a core investment, the satellites that surround it can fulfil other investment needs – perhaps thematic investments in specific regions or sectors that can add diversification, or funds that specifically target a regular and sustainable income. Investors may be able to fulfil more of their financial goals using MyMap’s ready-made suite of funds.