A multi-asset strategy combines different types of assets, such as stocks, bonds, real estate or cash to create a more nimble and broadly diversified portfolio. Fund managers balance asset classes to achieve particular investment objectives, such as growth, income or risk minimization.
What are popular multi-asset investment strategies?
The three major multi-asset fund categories are:
- Global macro allocation: These multi-asset funds offer investors broad diversification across a wide spectrum of asset classes. They trade assets in a flexible approach to adapt to shifting macro-economic conditions.
- Risk tolerance: These funds tailor their allocation toward a desired level of risk, whether it’s conservative, moderate or aggressive.
- Target date: Typically geared toward retirement investing, these multi-asset funds gradually adjust their allocation to match a specific investment horizon.
What are the benefits of multi-asset investment strategies?
Multi-asset funds offer the expertise of experienced fund managers who make investment decisions for you, such as whether to invest more assets overseas, shift assets from bonds to other income-generating securities, dial back risk or seek better opportunities. You benefit from high-level allocation strategy, a critical component to investment success.
What are the risks associated with multi-asset strategies?
The primary risk of multi-asset strategies is that a certain fund’s objectives may not align with your own. For example, you may invest in an aggressive strategy when a more conservative approach might be more suitable. On the other hand, if you take too conservative an approach, it may become more difficult to achieve your long-term goals. Carefully analyze funds and strategies to determine which approach best suits your needs.
What are some myths associated with multi-asset strategies?
Most myths concerning multi-asset strategies stem from a mistaken or limited definition of the strategy. For example, multi-asset strategies are often confused with being simply macro-economic funds, or thought to only apply to target date funds. In reality, multi-asset strategies can be either of these, but they can also be much more.
Why choose BlackRock for multi-asset strategies?
BlackRock offers a wide range of multi-asset strategies to help you achieve your investment goals, no matter what they may be. In the universe of multi-asset strategies, BlackRock offers:
- Experience: Our fund managers average over 26 years of experience1 with building multi-asset portfolios across a range of funds, customized mandates and model portfolios.
- Breadth: Our scale and global reach combined with industry-leading risk management capabilities – the power Aladdin® – allows us to localize investments and keep an eye towards reducing risk.
- Depth: BlackRock has $434 billion2 managed by over 200 investment professionals across nine teams.
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Growth
| Fund | Ticker |
|---|---|
| Global Allocation Fund | MALOX |
| Total Emerging Markets Fund | BEEIX |
| Total Factor Fund | BSTIX |
| Tactical Opportunities Fund | PCBAX |
Income
| Fund | Ticker |
|---|---|
| Multi-Asset Income Fund | BIICX |
| Managed Income Fund | BLDIX |
| Dynamic High Income Fund | BDHIX |
Target risk
| Fund | Ticker |
|---|---|
| 20/80 Target Allocation Fund | BICPX |
| 40/60 Target Allocation Fund | BIMPX |
| 60/40 Target Allocation Fund | BIGPX |
| 80/20 Target Allocation Fund | BIAPX |
| Balanced Capital Fund | MACPX |
Target date
| LifePath® | Investing for retirement made easier. Learn more. |
For fund performance and standardized rating periods, click on the fund name.
For standardized performance and more information, click on the ETF name.
Research Models
| BlackRock Model Portfolios |
What multi-asset strategy is best for me?
Multi-asset funds can be a powerful tool for achieving your investment objectives, but a strategy that works well for one investor may not be the best fit for another. As with any investment decision, it's important to first understand what you're trying to achieve and then identify the best strategy to get there.
You may want to consult a financial professional for advice on which multi-asset strategy might be best for you.
Past performance is no guarantee of future results
1 Average experience of Multi-Asset Strategies Group senior investment leaders as of 12/31/18.
2 AUM includes the acquisition of Citibanamex. Additional assets are managed in collaboration with Multi-Asset Strategies leaders as part of Smart Beta ($141 bn) and Private Investors ($84 bn) platforms, which are not included in the total MAS AUM $425 bn. These assets are shown in gross view which represents aggregate AUM. All data of 12/31/18.
Investing involves risk, including possible loss of principal.
Important Risks of the Funds: The mutual funds are actively managed and characteristics will vary. Bond values fluctuate in price so the value of your investment can go down depending on market conditions. The two main risks related to fixed income investing are interest-rate and credit risk. Typically, when interest rates rise, there is a corresponding decline in the market value of bonds. Credit risk refers to the possibility that the bond issuer will not be able to make principal and interest payments. The principal on mortgage- or asset-backed securities normally may be prepaid at any time, which reduces the yield and market value of those securities. Obligations of US gov’t agencies and authorities are supported by varying degrees of credit but generally are not backed by the full faith and credit of the US gov’t. Investing in derivatives entails specific risks relating to liquidity, leverage and credit that may reduce returns and increase volatility. International investing includes risks related to foreign currency, limited liquidity, less government regulation and the possibility of substantial volatility due to adverse political, economic or other developments. These risks often are heightened for investments in emerging/developing markets or smaller capital markets. Investments in non-investment-grade debt securities (”high-yield” or ”junk” bonds) may be subject to greater market fluctuations and risk of default or loss of income and principal than securities in higher rating categories. There may be less information on the financial condition of municipal issuers than for public corporations. The market for municipal bonds may be less liquid than for taxable bonds. Some investors may be subject to Alternative Minimum Tax (AMT). Capital gains distributions, if any, are taxable.
The principal value of the fund(s) is not guaranteed at any time, including at the target date. The target date in the name of the fund is the approximate date when an investor plans to start withdrawing money.
The iShares ETFs are not actively managed and will not attempt to take defensive positions under any market conditions, including declining markets. Investment in a fund of funds is subject to the risks and expenses of the underlying funds.
BlackRock's role is limited to providing you or your firm (collectively, the "Advisor") with non-discretionary investment recommendations in the form of model portfolios in connection with its management of its clients' accounts. The implementation of, or reliance on, a Managed Portfolio Strategy is left to the discretion of the Advisor. BlackRock is not responsible for determining the suitability or appropriateness of a Managed Portfolio Strategy or any securities included therein for any of the Advisor's clients. BlackRock does not place trade orders for any of the Advisor's clients' account. Information and other marketing materials provided to you by BlackRock concerning a Managed Portfolio Strategy - including holdings, performance and other characteristics - may not be indicative of a client's actual experience from an account managed in accordance with the strategy.
Carefully consider the Funds' investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds' prospectuses or, if available, the summary prospectuses which may be obtained visiting the iShares ETF and BlackRock Mutual Fund prospectus pages. Read the prospectus carefully before investing.
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