Model Portfolio
Performance and positioning update:
- Broad U.S. equity markets ticked higher in July, buoyed by strong corporate earnings, solid economic data, and further progress on trade deals.
- Tech stocks outperformed amid more optimism for AI-related capex spending and reduced tariff uncertainty with key trading partners, while more defensive sectors like Consumer Staples and Healthcare lagged this month. Broad international developed equity markets posted negative returns given the sharp rally in the U.S. dollar.
- In the fixed income space, continued strength in U.S. economic data fueled volatility in Fed rate cut expectations, especially as core PCE held steady at 2.8% year-over-year. The 10-year Treasury yield ended the month 15 basis points higher, capping a challenging period for rate-sensitive assets, and the Bloomberg U.S. Aggregate Bond Index thus returned -0.26% for the month. High yield exposures fared modestly better with the Bloomberg U.S. High Yield Corporate 2% Issuer Capped Index delivering a return of +0.45%.
Source: BlackRock as of 7/31/2025. All index data for market commentary sourced from Bloomberg as of 7/31/2025. Index performance is for illustrative purposes only. Index performance does not reflect any management fees, transaction costs 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. US Agg Bond: Bloomberg US Agg Bond Index. International Dividend Stocks: MSCI World ex USA HDY Index. Global REITs: FTSE EPRA Nareit Developed Index. Global Infra. Equity: S&P Global Infrastructure Index. EM Debt: JPM EMBI Global. US IG Bonds: Bloomberg US Corp Bond. High Yield Bonds: Bloomberg US HY 2% Issuer Cap. Bank Loans: Morningstar LSTA US Index. Preferreds: ICE BofA US Capital Securities Index. US Treasuries: Bloomberg US Treasury 10+ Year Index. Global Developed Equity: MSCI World Index. EM Equity: MSCI Emerging Market Index. US T-Bills represented by the Bloomberg US Treasury Bills 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, CFA
Co-Head of Income Investing, Multi-Asset Strategies & Solutions
Justin Christofel, CFA, CAIA, Managing Director, is co-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.
Alex Shingler, CFA
Co-Head of Income Investing, Multi-Asset Strategies & Solutions
Alex Shingler, CFA, Managing Director, is co-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.
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This information should not be relied upon as investment advice, research, or a recommendation by BlackRock regarding (i) the funds, (ii) the use or suitability of the model portfolios or (iii) any security in particular. Only an investor and their financial professional know enough about their circumstances to make an investment decision.
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