Chart your course with alternative investments
Uncertainty around rates, stock market volatility and inflation all challenge traditional 60/40 portfolios. Financial advisors can tap into new sources of return, like private markets, with BlackRock alternative investments.
Advisors. The most successful ones know that to deliver the very best for their clients, they need to stay one step ahead. Or several.
They have to be agile… but consistent… while evolving to meet client demand today, and championing investment and business solutions that will attract the clients of tomorrow.
So you probably already know all about the opportunities and risks surrounding stocks and bonds…and feel that finding consistent returns and potential real yield is tougher than ever.
Volatility, inflation, geopolitical risk - all of it is putting the traditional 60/40 portfolio under pressure.
Which means advisors need to allocate differently to continue delivering for clients.
But what about private markets?
Over the last 30 years, private markets have become more and more essential to pay attention to.
As the number of publicly listed U.S. companies has shrunk, the number of private companies grew. A lot.
Private markets, like private equity and private credit, can help investors pursue higher returns and income over public stocks and bonds.
But …. many investors have been shut out of accessing private investments due to high minimums, suitability requirements, and high fees, but now, that’s changed.
Now… for accredited investors that can tolerate the risk…private markets are easier to access than ever before.
1099 tax reporting, low minimums, quarterly liquidity - these are just some of the features open to investors through accredited investment vehicles.
And best of all, with BlackRock you have a dedicated partner to navigate the world of private markets with.
Together we can help you build better portfolios and become an even more successful future-thinking advisor for your clients.
Find out more by signing into Advisor Center on BlackRock.com.
Private markets unleashed
Nearly nine in ten advisors plan to grow their allocation to alternatives over the next two years. Dive into learning about why private markets are critical to continue delivering for your clients.2
It’s more important than ever to invest in private markets
Public markets are shrinking, while private markets represent a large and growing opportunity set.
We’re here to help you get started:
Gain differentiated access to the global scale of BlackRock’s private markets platform through:
- A diversified, institutional-caliber private equity portfolio (BPIF) in a convenient fund structure.
- A private credit interval fund (CREDX) that capitalizes on attractive opportunities across both private and liquid credit based on the current market environment.
- A private credit unlisted business development company (BDEBT) that seeks attractive risk-adjusted returns by investing primarily in directly-originated, senior-secured corporate debt investments.
BlackRock alternative funds
Explore our platform of alternative solutions to help your clients achieve their goals.
|
Ticker |
Name |
Morningstar Category |
Overall Morningstar Rating* |
|
BDEBT |
Credit |
|
|
|
CREDX |
Credit |
|
|
|
XPIFX |
Equity |
|
|
|
BIMBX |
Multistrategy |
3 |
|
|
PBAIX |
Macro trading |
4 |
|
|
BILPX |
Event Driven |
4 |
|
|
BDMIX |
Equity market neutral |
3 |
|
|
BGCIX |
Nontraditional bond |
3 |
|
|
BICSX |
Comm. broad basket |
4 |
|
|
BIREX |
Real estate |
4 |
Source: Morningstar as of 9/30/2023. Systematic Multi-Strategy, rated against 127 Multi-strategy Funds. Tactical Opportunities rated against 68 Macro trading Funds; Event Driven Equity rated against 42 Event Driven Funds. Global Equity Market Neutral rated against 29 Equity Market Neutral Funds; Global Long/Short Credit rated against 285 Nontraditional Bond Funds; Commodity Strategies rated against 102 Commodities Broad Basket Funds; Real Estate Securities rated against 230 Real Estate Funds. The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its 3-, 5-, and 10-year (if applicable) Morningstar Rating metrics. Ratings are based on risk-adjusted total returns. See important notes for additional information.
See how alternatives fit in your portfolio
Learn how to think beyond 60/40
Alternative investments such as private equity and credit can play a valuable role in today’s market. Earn CE credits by learning why and how to allocate to alternatives in client portfolios.
1 Source: Capital IQ, BlackRock as of 3/21/22. Represents the number of companies with annual revenues greater than $100 million.
2 Source: CAIS-Mercer survey Connected perspectives: The state of alternative investments in wealth management. Survey based on a select group of 198 independent financial advisors, asset managers, and other industry professionals as of October 2022.
3 The Morningstar Analyst Rating is not a credit or risk rating. It is a subjective evaluation performed by the manager research analysts of Morningstar. Morningstar evaluates funds based on five key pillars, which are process, performance, people, parent, and price. Analysts use this five pillar evaluation to determine how they believe funds are likely to perform over the long term on a risk-adjusted basis. They consider quantitative and qualitative factors in their research, and the weighting of each pillar may vary. The Analyst Rating scale is Gold, Silver, Bronze, Neutral, Negative. A Morningstar Analyst Rating of Gold, Silver, or Bronze reflect an Analyst’s conviction in a fund’s prospects for outperformance. Analyst Ratings are continuously monitored and reevaluated at least every 14 months. For more detailed information about Morningstar’s Analyst Rating, including its methodology, please go to http://corporate.morningstar.com/us/documents/MethodologyDocuments/AnalystRatingforFundsMethodology.pdf.
The Morningstar Analyst Rating should not be used as the sole basis in evaluating a mutual fund. Morningstar Analyst Ratings involve unknown risks and uncertainties which may cause Morningstar’s expectations not to occur or to differ significantly from what we expected.
Incorporating alternative investments into a portfolio presents the opportunity for significant losses including in some cases, losses which exceed the principal amount invested. Also, some alternative investments have experienced periods of extreme volatility and in general, are not suitable for all investors. Asset allocation and diver sif ication strategies do not ensure profit or protect against loss in declining markets.
Investing involves risk, including possible loss of principal.
IMPORTANT: The projections or other information generated by the tools regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results. Results may vary with each use and over time.
The Morningstar Rating™ for funds, or “star rating”, is calculated for managed products (including mutual funds, variable annuity and variable life sub-accounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.
As of 9/30/2023, the Systematic Multi-Strategy Fund (Inst shares) received a Morningstar Rating of 2 stars for the 3-year period, 4 stars for the 5-year period, rated against 127 and 107 Multistrategy Funds, respectively. Tactical Opportunities Fund (Inst shares) received a Morningstar Rating of 4 stars for the 3-year period, 4 stars for the 5-year period, and 4 stars for the 10-year period, rated against 68, 60, and 37 Macro Trading Funds, respectively. Event Driven Equity Fund (Inst shares) received a Morningstar Rating of 3 stars for the 3-year period, 3 stars for the 5-year period, and 5 stars for the 10-year period, rated against 42, 40, and 28 Event Driven Funds, respectively. Global Equity Market Neutral Fund (Inst shares) received a Morningstar Rating of 3 stars for the 3-year period, 3 stars for the 5-year period, and 3 stars for the 10-year period, rated against 29, 29, and 17 Equity Market Neutral Funds, respectively. Global Long/Short Credit Fund (Inst shares) received a Morningstar Rating of 4 stars for the 3-year period, 3 stars for the 5-year period, and 3 stars for the 10-year period, rated against 285, 245, and 145 Nontraditional Bond Funds, respectively. Commodity Strategies Fund (Inst shares) received a Morningstar Rating of 2 stars for the 3-year period, 3 stars for the 5-year period, and 5 stars for the 10-year period, rated against 102, 98, and 61 Commodities Broad Basket Funds, respectively. Real Estate Securities Fund (Inst shares) received a Morningstar Rating of 3 stars for the 3-year period, 3 stars for the 5-year period, and 4 stars for the 10-year period, rated against 230, 213, and 153 Real Estate Funds, respectively.
Please consider the investment objectives, risks, charges and expenses of the funds carefully before investing. The prospectuses and, if available, the summary prospectuses contain this and other information about the funds and are available, along with information on other BlackRock funds, by calling 800-882-0052 or at www.blackrock.com/funds The prospectuses and, if available, the summary prospectuses should be read carefully before investing.Investing involves risk, including possible loss of principal. This material is strictly for illustrative, educational, or informational purposes and is subject to change. There can be no assurance that an investment strategy based will be successful.
©2023 BlackRock. Prepared by BlackRock Investments, LLC. Member FINRA. BlackRock is a trademark of BlackRock, Inc. or its affiliates. All other marks are the property of their respective owners.
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