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In an age where new information is constantly being created, the ability to process vast amounts of raw data can create a significant advantage for active managers. BlackRock s Systematic Equities team uses cutting-edge technology and sophisticated analytics techniques to uncover investment insights faster, at greater scale, and with more granularity than traditional methods
On-screen question: How do you maintain an alpha edge in markets?
Simply put, deep human expertise and cutting-edge technology.
We live in an increasingly digital world. When you look at all the data available, 90% of it has been generated over the last two years. [Source: Dihuni, data as of April 10 2020]
This is everything from wi-fi beacons to credit card purchases, to online activities.
While a single data point might not be interesting, in aggregate, it starts to tell a story.
We utilize diverse market expertise and data-driven investment process to separate potentially valuable signals from the noise. This leads to potentially innovative insights that seek to forecast trends and help make active moves ahead of the pack.
We believe that better and more differentiated investment insights from new data and new techniques are becoming necessary conditions for investment success.
Alternative data goes beyond information included in company financial statements. Examples include text from corporate call transcripts and online job postings. These unstructured datasets have the potential to uncover investment opportunities before they’re priced into markets, seeking to provide a unique investment edge.
In our view, robust risk management is essential to generating consistent returns. Enabled by sophisticated risk management capabilities, our investment experts use proprietary systematic tools and analysis to continuously manage and navigate evolving risks.
A systematic approach is key to transforming a sea of raw data into actionable insights that can be implemented at the portfolio level. We use cutting-edge technology to scale detailed analysis and implementation techniques across thousands of securities, creating a consistent process across a broad opportunity set.
Designed to deliver differentiated return potential and diversification, systematic equity strategies may complement existing index and factor solutions—enhancing portfolio outcomes.
We believe that an investment process underpinned by continual
innovation is vital to our goal of delivering sustainable alpha to our
clients.
History of innovation
Our Systematic Equities platform has a 35+ year history of active management across global markets. We believe that an investment process underpinned by innovation is vital for delivering consistent alpha to clients.
Investment philosophy
Sourcing alpha opportunities has always required an investment edge. We believe staying ahead requires three key characteristics: thinking differently, evolving continuously, and remaining relevant as conditions change.
Robust human expertise
Our approach to systematic investing goes beyond data and technology. Human intellect is central to investment decision-making and we view it as a key source of strength and differentiation.
BlackRock s systematic equity capabilities provide investors with a range of solutions to help meet
their investment needs. They are built on the underlying principle of leveraging data and
technology to drive better portfolio decisions while seeking differentiated returns, broad
diversification, and robust risk management at a reasonable cost.
To obtain more information on the fund(s) including the Morningstar time period ratings and standardized average annual total returns as of the most recent calendar quarter and current month end, please click on the fund tile.
The Morningstar RatingTM for funds, or star rating , is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, 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 (excluding any applicable sales charges) 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 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.
Performance data quoted represents past performance and is no guarantee of future results. Investment returns and principal values may fluctuate so that an investor s shares, when redeemed, may be worth more or
less than their original cost. All returns assume reinvestment of dividends and capital gains. Current performance may be lower or higher than that shown. Refer to blackrock.com for most recent month end
performance.
BlackRock’s equity market experts reveal what is driving their 2024 outlook.
Explore the origins of systematic investing, from first identifying the trade-off between risk and return to construct optimal investment portfolios, to the pure systematic alpha strategies of today that rely on an explosion of new and unstructured data.
Explore how we use AI in our investment process to identify security selection insights and target precise portfolio outcomes.
Investing involves risk, including possible loss of principal. Equities may decline in value due to both real and perceived general market, economic, and industry conditions. Diversification does not ensure profits or protect against loss.
Important Risks of the Funds: The mutual funds are actively managed and characteristics will vary.
Stock and bond values fluctuate in price so the value of your investment can go down depending on market conditions.
International investing involves risks, including 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 in concentrations of single countries.
The funds may use derivatives to hedge its investments or to seek to enhance returns. Derivatives entail risks relating to liquidity, leverage and credit that may reduce returns and increase volatility.
Short-selling entails special risks. If the fund makes short sales in securities that increase in value, the fund will lose value. Any loss on short positions may or may not be offset by investing short-sale proceeds in other investments.
Investing in small- and mid-cap companies may entail greater risk than large-cap companies, due to shorter operating histories, less seasoned management or lower trading volumes.
This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy.
The information and opinions contained in this material are derived from proprietary and non-proprietary sources deemed by BlackRock to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. As such, no warranty of accuracy or reliability is given and no responsibility arising in any other way for errors and omissions (including responsibility to any person by reason of negligence) is accepted by BlackRock, its officers, employees or agents. This material may contain “forward-looking” information that is not purely historical in nature. Such information may include, among other things, projections and forecasts. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this material is at the sole discretion of the reader.
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.
The Funds are distributed by BlackRock Investments, LLC (together with its affiliates, "BlackRock").
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