BlackRock’s fixed income SMAs

Explore BlackRock’s full platform of fixed income SMAs to address your clients’ needs.

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Fixed Income Strategy Avg. yield to worst (%) Avg. coupon (%) Avg. effective duration (yrs) Fact Sheet Sample Portfolio GIPS Composite Report
Short-Term Municipal 2.82 5.00 2.87 Fact Sheet Sample Portfolio GIPS Composite Report
Intermediate Municipal 3.02 5.00 4.75 Fact Sheet Sample Portfolio GIPS Composite Report
Long-Term Municipal 3.44 4.93 7.96 Fact Sheet Sample Portfolio GIPS Composite Report
Municipal Opportunities† 3.70 4.93 4.96 Fact Sheet Sample Portfolio GIPS Composite Report
Municipal Ladder 1-5 year 2.86 5.00 2.43 Fact Sheet Sample Portfolio GIPS Composite Report
Municipal Ladder 1-10 year 2.95 5.00 4.22 Fact Sheet Sample Portfolio GIPS Composite Report
Municipal Ladder 5-15 year 3.17 5.00 6.22 Fact Sheet Sample Portfolio GIPS Composite Report
Municipal Ladder 10-20 year 3.48 5.00 7.11 Fact Sheet Sample Portfolio GIPS Composite Report

*For illustrative purposes only. Past performance is not indicative of future results. Portfolio characteristic data is pulled from the respective sample portfolio. The portfolio characteristics shown are the
data points most requested by Financial Advisor clients. Please click on the sample portfolio link for more information. Data as of November 1, 2024.
† BlackRock Allocation Target Shares (BATS) mutual funds available for use within BlackRock Separately Managed Account Strategies

Fixed Income Strategy Avg. yield to worst (%) Avg. coupon (%) Avg. effective duration (yrs) Fact Sheet Sample Portfolio GIPS Composite Report
Short-Term Taxable 4.39 4.15 1.86 Fact Sheet Sample Portfolio GIPS Composite Report
Intermediate Taxable 4.68 3.34 4.30 Fact Sheet Sample Portfolio GIPS Composite Report
Fundamental Core Taxable 4.75 3.43 5.95 Fact Sheet Sample Portfolio GIPS Composite Report
Short Duration† 4.27 3.89 1.86 Fact Sheet Sample Portfolio GIPS Composite Report
Core Bond† 4.54 3.63 5.85 Fact Sheet Sample Portfolio GIPS Composite Report
Government/Corporate Taxable 4.51 3.21 6.15 Fact Sheet Sample Portfolio GIPS Composite Report
Corporate Ladder 1-5 year 4.76 4.04 2.27 Fact Sheet Sample Portfolio GIPS Composite Report
Corporate Ladder 1-10 year 4.89 4.10 4.39 Fact Sheet Sample Portfolio GIPS Composite Report

*For illustrative purposes only. Past performance is not indicative of future results. Portfolio characteristic data is pulled from the respective sample portfolio. The portfolio characteristics shown are the
data points most requested by Financial Advisor clients. Please click on the sample portfolio link for more information. Data as of November 1, 2024.
† BlackRock Allocation Target Shares (BATS) mutual funds available for use within BlackRock Separately Managed Account Strategies

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A discussion on fixed income SMAs: Hear from the experts

Kevin Staub, SMA Commercial Strategy and Duane Liedl, Senior Portfolio Manager discuss fixed income SMAs and how BlackRock is partnering with advisors to help deliver personalized solutions to their clients.

[00:00:06.28] KEVIN STAUB: Welcome. Thanks for joining us. I'm Kevin Staub. And I lead our SMA commercial strategy for BlackRock's US Wealth business. I'm joined today by Duane Liedl, head fixed-income portfolio manager in the Northeast. Today, we're going to take you through BlackRock's SMA platform. And we're going to spend some time talking about the benefits of the fixed-income SMA wrapper, as well as some of the use cases that advisors and clients are partnering with us in us Wealth. Duane, thanks for joining us today. 
[00:00:36.20] DUANE LIEDL: Happy to be here, Kevin. Thanks for having me. 
[00:00:38.60] KEVIN STAUB: So Duane, it's clear the current UN environment is presenting vast opportunities in fixed income, and particularly against prior years. When I tend to think about the SMA structure, I typically think about the security ownership. But can you share why that's important and any other attributes about the SMA structure that make an attractive vehicle for the clients that you're working with? 
[00:01:02.20] DUANE LIEDL: I think when you boil it down, Kevin, it really comes down to having more control, right? Control over the portfolio construction and client experience, control over tax efficiency, and the control over the cost of ownership, right? Both explicit and implicit. I think we would all agree that there's a societal shift at hand by consumers towards more unique and customized experiences. 
[00:01:26.81] Specifically, regarding SMAs, the fact that, A, the clients funds are not commingled with other investors can help limit the impact that other investors may have on your performance. And B, you're dealing with the underlying securities, which provides increased flexibility to personalize the portfolio, and in turn, better control for a more positive client experience. 
[00:01:50.10] Another area that advisors and clients want more control over is taxes, or tax efficiency, which is a very popular topic today. The SMA vehicle can provide a number of advantages for clients, from how the portfolio is initially funded and the ability to incorporate that into the strategy, to the taxation of the income that is generated, to the ability to tax lost harvest individual bonds, which was in very high demand from our clients last year, given the challenging year for fixed-income investors. 
[00:02:20.52] Last but not least, owning the individual bonds is very important to many of our clients. We call it having permanence and definition-- in other words, a set of fixed features, whether it's the bond's maturity, the coupon, the underlying credit quality of the issuer, that can be counted on to deliver for our clients, especially during periods of high market uncertainty. That's an important feature of SMAs. 
[00:02:45.46] KEVIN STAUB: Duane, I really like that-- the control for investors, the tax efficiency in several different ways, and really, that permanence in definition for clients to hold those bonds in their portfolio. I've also seen that some of the benefits compound through the advisor lens. And we like to refer to this as practice management. We still see many advisors managing bonds on their own. And more often than not, they're doing it well. 
[00:03:10.72] But those advisors are reaching out and looking for differentiated and more efficient ways of doing bonds. Some that we've worked with have found that partnering with BlackRock may alleviate the risk of sourcing individual bonds, may offer enhanced capabilities to compete for some of those complex client situations. And most importantly, it frees up the time to focus on other areas, such as business building, wealth management, or retirement planning. 
[00:03:39.59] So bringing it all together, SMAs can add value across the portfolio. And they can do so at costs that are comparable to ETFs, making them an attractive option for both advisors and their client. So thank you for joining us. If you'd like to learn more about BlackRock's fixed-income business or BlackRock's SMA platform, please contact your local representative. Thank you.

[00:00:06.28] KEVIN STAUB: Welcome. Thanks for joining us. I'm Kevin Staub. And I lead our SMA commercial strategy for BlackRock's US Wealth business. I'm joined today by Duane Liedl, head fixed-income portfolio manager in the Northeast. Today, we're going to take you through BlackRock's SMA platform. And we're going to spend some time talking about the benefits of the fixed-income SMA wrapper, as well as some of the use cases that advisors and clients are partnering with us in us Wealth. Duane, thanks for joining us today. 
[00:00:36.20] DUANE LIEDL: Happy to be here, Kevin. Thanks for having me. 
[00:00:38.60] KEVIN STAUB: So Duane, it's clear the current UN environment is presenting vast opportunities in fixed income, and particularly against prior years. When I tend to think about the SMA structure, I typically think about the security ownership. But can you share why that's important and any other attributes about the SMA structure that make an attractive vehicle for the clients that you're working with? 
[00:01:02.20] DUANE LIEDL: I think when you boil it down, Kevin, it really comes down to having more control, right? Control over the portfolio construction and client experience, control over tax efficiency, and the control over the cost of ownership, right? Both explicit and implicit. I think we would all agree that there's a societal shift at hand by consumers towards more unique and customized experiences. 
[00:01:26.81] Specifically, regarding SMAs, the fact that, A, the clients funds are not commingled with other investors can help limit the impact that other investors may have on your performance. And B, you're dealing with the underlying securities, which provides increased flexibility to personalize the portfolio, and in turn, better control for a more positive client experience. 
[00:01:50.10] Another area that advisors and clients want more control over is taxes, or tax efficiency, which is a very popular topic today. The SMA vehicle can provide a number of advantages for clients, from how the portfolio is initially funded and the ability to incorporate that into the strategy, to the taxation of the income that is generated, to the ability to tax lost harvest individual bonds, which was in very high demand from our clients last year, given the challenging year for fixed-income investors. 
[00:02:20.52] Last but not least, owning the individual bonds is very important to many of our clients. We call it having permanence and definition-- in other words, a set of fixed features, whether it's the bond's maturity, the coupon, the underlying credit quality of the issuer, that can be counted on to deliver for our clients, especially during periods of high market uncertainty. That's an important feature of SMAs. 
[00:02:45.46] KEVIN STAUB: Duane, I really like that-- the control for investors, the tax efficiency in several different ways, and really, that permanence in definition for clients to hold those bonds in their portfolio. I've also seen that some of the benefits compound through the advisor lens. And we like to refer to this as practice management. We still see many advisors managing bonds on their own. And more often than not, they're doing it well. 
[00:03:10.72] But those advisors are reaching out and looking for differentiated and more efficient ways of doing bonds. Some that we've worked with have found that partnering with BlackRock may alleviate the risk of sourcing individual bonds, may offer enhanced capabilities to compete for some of those complex client situations. And most importantly, it frees up the time to focus on other areas, such as business building, wealth management, or retirement planning. 
[00:03:39.59] So bringing it all together, SMAs can add value across the portfolio. And they can do so at costs that are comparable to ETFs, making them an attractive option for both advisors and their client. So thank you for joining us. If you'd like to learn more about BlackRock's fixed-income business or BlackRock's SMA platform, please contact your local representative. Thank you.

Why SMAs for fixed income investors?

A fixed income SMA is a portfolio of individual bonds that blends the benefits of direct ownership and institutional asset management. The unique structure of an SMA can provide benefits to both advisors and their clients.

Benefits to the client

Customization shapes
Customization
SMAs can be customized across investment characteristics, return/yield objectives and liquidity needs.
Graph
Tax-efficiency
Accounts can be funded with existing securities, customized to state of residence for munis and tax-loss harvested at the individual security level.
Coin
Low cost
SMA fees are often lower and more transparent than those of funds.

Benefits to the advisor

Clock
Capacity
Advisors that partner with a professional manager can scale investment management responsibilities and spend more time with clients.
Home
Access
With SMAs, advisors can receive institutional level tools and access in client accounts including credit research and risk management.
People
Service
Portfolio managers serve as an extension to an advisors practice, from constructing portfolios to conducting client reviews.

Why BlackRock for fixed income SMAS

BlackRock is a leader in the fixed income SMA industry, managing over $70B in client assets.1 Our platform offers a scalable process to help advisors build personalized bond portfolios for their clients.

The BlackRock SMA experience

number 1
Meet your PM2
BlackRock portfolio managers partner locally with advisors to help build, transition and manage client portfolios.
number 2
Customize beyond the ordinary
Consultative approach to working with advisors to build personalized portfolios with a focus on solving investor needs.
number 3
Transition with care
Transition bonds in-kind over a multi-year tax budget, seeking to minimize tax friction while maintaining the integrity of the portfolio.
number 4
Invest at scale
BlackRock’s allocation to new issuances allows us to purchase bonds at scale which can benefit clients through lower transaction costs.3

Scale matters when trading municipal bonds

BlackRock generally trades on the financial market to purchase bonds for clients at a larger scale, potentially benefiting investors with lower transaction costs and greater access to inventory.
Fixed Income SMA Strategies

BlackRock customizes fixed income SMAs across five dimensions

BlackRock fixed income SMAs offer a range of enhanced customization capabilities seeking to deliver personalized solutions for advisors and their clients.
5 step personalization graph

FAQ's

  • Not all bonds are created equal. Some of the key differences between municipal and taxable bonds include the issuer and type of projects that will be funded, risk profile, yields and tax implications. It is important to consider the potential benefits and risks of each when deciding the best option for your specific situation. 

  • Taxes vary according to the type of bond you own. Tax-equivalent yield is the return calculation that puts a taxable and tax-exempt bond on equal footing. To calculate tax-equivalent yield, divide the municipal (tax-free) yield by 100% minus the investor’s tax bracket. This formula helps in comparing municipal and taxable bonds. 

  • Bonds typically pay interest on a semiannual basis, or every 6-months.

  • All
  • Bonds / Fixed Income
  • Active management will drive muni returns in 2024
    Bonds / Fixed Income

    Active management will drive muni returns in 2024

    Dec 6, 2024 | By BlackRock
    Market update from BlackRock's municipal bond team.
  • Monthly commentary: Strategic Income Opportunities Fund
    Bonds / Fixed Income

    Monthly commentary: Strategic Income Opportunities Fund

    Nov 27, 2024 | By BlackRock
    The portfolio managers of the BlackRock Strategic Income Opportunities Fund discuss the fund’s performance and positioning in this monthly commentary.
  • Monthly commentary: Total Return Fund
    Bonds / Fixed Income

    Monthly commentary: Total Return Fund

    Nov 27, 2024 | By BlackRock
    A diversified core bond strategy can help your portfolio deliver more consistent performance through market cycles. BlackRock Total Return Fund seeks returns in a variety of fixed income sectors while providing protection when stocks fall.
  • There’s Still Time to Reduce Tax Drag
    Tax

    There’s Still Time to Reduce Tax Drag

    Nov 18, 2024 | By Daniel Prince, CFA
    Learn about two common ways to reduce portfolio tax costs as we approach year-end: tax loss harvesting and avoiding capital gains distributions.
  • Tax loss harvesting with bond ETFs
    Tax

    Tax loss harvesting with bond ETFs

    Nov 8, 2024 | By Karen Veraa-Perry, CFA
    Learn about the opportunities to tax-loss harvest bond funds to lower clients’ tax bills.
  • iBonds ETFs: What to do with maturing iBonds?
    Bonds / Fixed Income

    iBonds ETFs: What to do with maturing iBonds?

    Nov 8, 2024 | By Karen Veraa, CFA
    With 2024 iBonds ETFs maturing in late 2024, read our latest insight to learn a few ways to keep your clients invested and on track with their investment goals.
  • Investing Around the Election and the Government Debt Problem
    Multi-Asset

    Investing Around the Election and the Government Debt Problem

    Oct 31, 2024 | By Rick Rieder
    Rick Rieder explains how the US economy is resilient, the government debt issue and how to invest in stocks and bonds in the months around the election.
  • Moving the Needle
    Multi-Asset

    Moving the Needle

    Sep 30, 2024 | By Rick Rieder
    Market Insight: Moving the Needle Rick Rieder and team outline an evolution of portfolio construction for the current environment.
  • The Fed has started cutting interest rates. Now what?
    Bonds / Fixed Income

    The Fed has started cutting interest rates. Now what?

    Sep 18, 2024 | By Carolyn Barnette
    With the Fed decision to cut rates, we explore how markets have historically reacted in cutting cycles and where we see the most opportunity in today's market.
  • Abundant Income
    Multi-Asset

    Abundant Income

    Jun 20, 2024 | By Rick Rieder
    Rick Rieder and team argue that the economy is making further progress towards normalization and continues to offer a once-in-a-generation investing opportunity.
  • Seek higher yields with iBonds ETFs or Bond SMAs
    Bonds / Fixed Income

    Seek higher yields with iBonds ETFs or Bond SMAs

    May 21, 2024 | By Karen Veraa, CFA
    Bond ladders can be a great way to enjoy steadier income until maturity. Lock in rates now with BlackRock’s bond laddering strategies.
  • Rotation to Duration: Seeking a More Resilient Portfolio
    Bonds / Fixed Income

    Rotation to Duration: Seeking a More Resilient Portfolio

    Apr 29, 2024 | By BlackRock
    Consider adding duration to your investment portfolio. A potential Fed pause creates an opportunity, and duration can offer protection from market volatility
  • No time to yield: Getting your clients into bonds
    Bonds / Fixed Income

    No time to yield: Getting your clients into bonds

    Apr 25, 2024 | By Karen Veraa, CFA
    Discover how bond ETFs can be a powerful investment tool for advisors to help clients get their cash off the sidelines and capture today’s elevated yields.
  • Taking Stock of (and in) Markets with Rick Rieder
    Bonds / Fixed Income

    Taking Stock of (and in) Markets with Rick Rieder

    Apr 15, 2024 | By Rick Rieder
    Rick Rieder discusses that as the economy appears to be returning to more normal conditions, advisors and their clients must evolve their portfolio construction.
  • Rieder- The Fixed Income Opportunity for 2024
    Bonds / Fixed Income

    Rieder- The Fixed Income Opportunity for 2024

    Dec 19, 2023 | By Rick Rieder
    Rick Rieder argues that fixed income asset returns can appear prospectively most attractive after a prolonged back up in rates, so we see compelling opportunity.