Model Portfolio
Performance and positioning update:
- Our small overweight to equities impacted relative returns, but de-risking ahead of the US presidential election helped reduce downside risk.
- Quality factor stocks underperformed due to high exposure to healthcare and low exposure to financials.
- International stocks detracted the most from total returns, while active factor rotation strategy and convertible bonds contributed positively.
Market performance: October 2024
Source: BlackRock. Monthly returns for the period 10/1/24 – 10/31/24. U.S. large cap stocks represented by the S&P 500 Index; U.S. small cap, Russell 2000 Index; international developed, MSCI EAFE Index; emerging market stocks, MSCI Emerging Markets Index; Treasury bonds, Bloomberg U.S. Treasury 7-10 Year Total Return Index; corporate bonds, Bloomberg U.S. Aggregate Bond Index; high yield bonds, Bloomberg High Yield 2 Issuer Capped Index; EM bonds, JP Morgan Emerging Market Bond Index-Global. 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.
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Michael Gates
Michael Gates, CFA, Managing Director, is the head of Model Portfolio Solutions in the Americas within BlackRock's Multi-Asset Strategies & Solutions group.
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