Today more than ever,
alternatives should be core

Alternative investments offer your clients opportunities that traditional 60/40 portfolios cannot. Consider redesigning your portfolios with alternative strategies that can help provide diversification or seek to amplify returns through access to private markets.
The challenge with stocks
The challenge with stocks
The decade leading up to 2020 was an outlier for stocks, with risk near record lows. Returns have become more challenged with heightened volatility back in the market.
The challenge with bonds
The challenge with bonds
Bonds are struggling to provide the ballast they once did. Coupled with rising rates and high inflation, it might be time to diversify elsewhere.

Volatility, inflation, low yields (pause) advisors today are faced with an unprecedented set of challenges. We expect portfolios may have a tough time hitting return targets, which means that the traditional 60/40 portfolio that worked historically, might not get your clients where they need to go.

Alternative investments can help but finding the right type has long been a challenge for investors.

To continue delivering for your clients, we believe you should focus on two types of alternatives in today’s market environment: (1) Diversifiers which seek differentiated and unique portfolio exposures and (2) Amplifiers which seek higher returns or income over public markets by investing in private markets

Talk to your BlackRock Market Leader to learn how you can help optimize your clients’ portfolios and start capitalizing on alternative investment opportunities today.

Important Notes:

The information and opinions contained in this material are derived from proprietary and non-proprietary sources deemed by BlackRock to be reliable, are not necessarily all inclusive and are not guaranteed as to accuracy. Investments named within this material may not necessarily be held in any accounts managed by BlackRock. Reliance upon information in this material is at the sole discretion of the reader. Statements concerning financial market trends are based on current market conditions, which will fluctuate. There is no guarantee that these investment strategies will perform well under all market conditions. Outlook and strategies are subject to change without notice.

Investing involves risks, including possible loss of principal.

Alternative investments may engage in speculative investment practices which increase investment risk, can be highly illiquid, often are not required to provide periodic prices or valuation, may not be subject to the same regulatory requirements as mutual funds and often employ complex tax structures. Also, some alternative investments have experienced periods of extreme volatility.

Prepared by BlackRock Investments, LLC, member FINRA.

© 2022 BlackRock, Inc. All Rights Reserved. BLACKROCK is a trademark of BlackRock, Inc. All other trademarks are those of their respective owners.

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It's all about the outcome

It’s tougher than ever to find sources of return and income. Focus on diversifiers to help differentiate return streams and amplifiers to seek higher returns over public markets by investing in private markets.

How to allocate to alternatives
We believe a 50/30/20 portfolio allocation is the new 60/40. Get started today by aligning your allocation to the outcome(s) you seek for your clients.
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Test out alternatives in your portfolio
BlackRock’s Expected Return Analyzer helps you test client portfolios against forward-looking projections and looks to identify ways to narrow the gap between your clients’ goals and their current holdings.
Think beyond 60/40

Get started with alternatives

BlackRock Private Investments (XPIFX)
Get access to institutional-caliber private equity exposure, including direct investments and secondaries, through a convenient fund structure.
Access Key icon
Seek to amplify through XPIFX, which democratizes access to private equity via a continuously offered, closed-end fund.
Systematic Multi-Strategy Fund (BIMBX)
Seeks to provide consistent returns in various market scenarios with three complementary strategies that are negatively correlated to each other. The fund’s credit-oriented investment process “flips” the norm, seeking upside with fixed income and downside preservation with defensive long/short equity.
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Upside participation / downside defense: BIMBX strategically adjusts allocations among the underlying strategies, seeking to generate attractive returns by capturing more upside and less downside.
BlackRock Credit Strategies Fund (CREDX)
CREDX seeks to amplify fixed income returns by investing in both public and private credit markets. The private markets allocation focuses on middle market direct lending, tapping into new sources of high income.
CREDX
CREDX has the structural advantages of an “interval fund”* – access to private market investments but with quarterly liquidity, lower fees and more simplified tax reporting.
Global Long/Short Equity Fund (BDMIX)
A diversifying strategy that has provided attractive returns, low correlation and low beta to stocks, using data and technology to better understand companies, industries, markets and trends.
Returns with low-correlation to markets
Low net market exposure. BDMIX focuses on limiting net market exposure, seeking to reduce volatility through low sensitivity to major market swings.

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