Model Portfolio
Performance and positioning update:
September was a difficult month across markets as higher oil prices, renewed inflation concerns and tighter monetary policy pushed government bond yields sharply higher. The Federal Reserve, European Central Bank and Bank of Japan all raised policy rates as resilient economic data meant central banks remained focused on taming inflation. The 10 year Treasury yield rose for a seventh consecutive month to its highest level since 2007, weighing on core bonds and interest rate sensitive areas of the equity market. The S&P 500 finished only modestly lower and the Nasdaq advanced, supported by continued strength in large technology companies. Beneath the surface, however, participation was much weaker. The equal-weighted S&P 500 fell around 5%, while value stocks, European equities and emerging markets also declined. A relatively small group of mega cap growth and technology companies therefore masked a more difficult month for the average stock.
Source: BlackRock as of 9/30/2026. All index data for market commentary sourced from Bloomberg as of 9/30/2026. Index performance is for illustrative purposes only. Index performance does not reflect any management fees or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results. US Dividend Stocks: MSCI USA High Dividend Index. Int’l Dividend Stocks: MSCI World ex USA High Dividend Yield Index. Global REITs: FTSE EPRA Nareit Developed Index. Global Infra. Equity: S&P Global Infrastructure Index. EM Debt: JPM EMBI Global Index. US IG Bonds: Bloomberg US Corp Bond. High Yield Bonds: Bloomberg US HY 2% Issuer Cap Index. Preferreds: S&P Preferred Stock Index. US Treasuries: Bloomberg US Treasury (1972) Index. Global Developed Equity: MSCI World Index. EM Equity: MSCI Emerging Market Index. US T-Bills: Bloomberg US Treasury Bills Index. Bank Loans: Morningstar LSTA US Leveraged Loan Total Return Index. This material represents an assessment of the market environment as of the date indicated; is subject to change; and is not intended to be a forecast of future events or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding the funds or any issuer or security in particular. A basis point represents one hundredth of a percent.
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Justin Christofel
Global head of Income Investing, Multi-Asset Strategies & Solutions
Justin Christofel, CFA, CAIA, Managing Director, is global head of Income Investing for BlackRock’s Multi-Asset Strategies & Solutions group. He is a portfolio manager for a number of income strategies including the Multi-Asset Income Fund, Dynamic High Income Fund, Managed Income Fund, and Multi-Asset Income model portfolios.
Louis Arranz
Portfolio manager, Multi-Asset Strategies and Solutions (MASS) Income team
Louis Arranz, CFA, CAIA, FRM, Director, is a portfolio manager for BlackRock’s Multi-Asset Strategies & Solutions (MASS) Income team where he focuses on investment research and portfolio management.
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