Navigate uncertainty with a tactical diversifier

I’m Meghan Colarusso, Senior Product Strategist for Multi-Asset Strategies & Solutions at BlackRock

One question we often hear from clients in South Africa is how to build resilient offshore portfolios in today’s market environment. Many investors are re-evaluating and considering where additional sources of diversification may help support portfolio outcomes.

The new market regime

Portfolio construction has entered a new regime.
Markets are more volatile, macro conditions are shifting more frequently, and portfolio outcomes are harder to predict.

The diversification challenge

For many years, diversification relied heavily on the balance between equities and bonds.
But as traditional relationships become less reliable, portfolios can become more exposed particularly during periods of market stress.

Expanding the toolkit

That’s why portfolio builders need to expand their toolkit.
Not to replace core allocations — but to complement them with strategies designed to behave differently and support more resilient portfolio outcomes.

The role of liquid alternatives

One way portfolios are evolving is through the use of global macro liquid alternatives.
These strategies can invest long and short across markets, with return drivers that are less dependent on traditional asset classes.

Introducing the Tactical Opportunities Fund

This is where the Tactical Opportunities Fund fits.
 Often referred to as TAC Ops, it is designed to act as a tactical diversifier — complementing existing equity and bond exposures and helping portfolios navigate uncertainty as market conditions change.

How the fund is designed

The Tactical Opportunities Fund brings together multiple macro perspectives, combining different approaches to identifying opportunities across global markets.
The focus is on adaptability — responding to changing conditions rather than relying on a single market outcome.

What this means for South African investors

For South African investors, this means access to a globally diversified strategy that can sit alongside existing portfolios  focused on clarity of role, liquidity, and supporting more consistent portfolio behavior through market cycles.

Three ways to elevate portfolios with liquid alternatives

In practice, liquid alternatives like the Tactical Opportunities Fund can help elevate portfolios in three key ways.

First — by diversifying return sources beyond traditional markets.

Second — by helping manage volatility through changing conditions.

And third — by improving portfolio efficiency, supporting more resilient outcomes without compromising liquidity.

In a world where diversification is harder to achieve, portfolios need tools designed for today’s conditions.

To learn more about the Tactical Opportunities Fund, and how it could fit within your portfolio, please reach out to our South Africa team.

Risk Warnings

Investors should refer to the prospectus or offering documentation for the funds full list of risks.

Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested.

Fund-specific risks

Tactical Opportunities Fund

Absolute Return Risk - Style Advantage, Combined Risks (Equity, Credit, ABS/MBS), Counterparty Risk, Credit Risk, Liquidity Risk

Absolute Return Risk - Style Advantage

Absolute Return' funds may not move in line with market trends or fully benefit from a positive market environment. Emerging markets are generally more sensitive to economic and political conditions than developed markets.

Combined Risks (Equity, Credit, ABS/MBS)

Equities and equity-related securities can be affected by daily stock market movements. Fixed Income securities can be affected by changes to interest rates, credit risk and potential or actual credit rating downgrades. Non-investment grade FI securities can be more sensitive to these events. ABS and MBS may have high levels of borrowing and not fully reflect the value of underlying assets. FDIs are highly sensitive to changes in the value of the asset they are based on. The impact is greater where FDIs are used in an extensive or complex way.

Counterparty Risk

The insolvency of any institutions providing services such as safekeeping of assets or acting as counterparty to derivatives or other instruments, may expose the Fund to financial loss.

Credit Risk

The issuer of a financial asset held within the Fund may not pay income or repay capital to the Fund when due.

Liquidity Risk

The Fund's investments may have low liquidity which often causes the value of these investments to be less predictable. In extreme cases, the Fund may not be able to realise the investment at the latest market price or at a price considered fair.

BlackRock Funds I ICAV: This is Marketing Material. The Tactical Opportunities Fund is a sub fund of the BlackRock Funds I ICAV (the ‘Fund’). The Fund is structured as a unit trust organised under the laws of Ireland and authorised by the Central Bank of Ireland as UCITS for the purposes of UCITS Regulations. Investment in the sub-fund(s) is only open to 'Qualified Holders', as defined in the relevant Fund Prospectus. In the UK any decision to invest must be based solely on the information contained in the Company’s Prospectus, Key Investor Information Document (KIID) and the latest half-yearly report and unaudited accounts and/or annual report and audited accounts, and in the EEA and Switzerland any decision to invest must be based solely on the information contained in the Company’s Prospectus (Available in English, French and German languages), the most recent financial reports and the Packaged Retail and Insurance-based Investment Products Key Information Document (PRIIPs KID) and the latest half-yearly report and unaudited accounts and/or annual report and audited accounts which are available in registered jurisdictions and local language where they are registered, these can be found at www.blackrock.com on the relevant product pages. Any investment decision should be made on the basis of the information outlined above and Investors should understand all characteristics of the funds objective before investing, if applicable this includes sustainable disclosures and sustainable related characteristics of the fund as found in the prospectus, which can be found www.blackrock.com on the relevant product pages for where the fund is registered for sale. Prospectuses, Key Investor Information Documents (UK only), PRIIPs KID and application forms may not be available to investors in certain jurisdictions where the Fund in question has not been authorised. BlackRock and/or the Management Company may terminate marketing at any time. For information on investor rights and how to raise complaints please go to https://www.blackrock.com/corporate/compliance/investor-right available in local language in registered jurisdictions.

UCITS HAVE NO GUARANTEED RETURN AND PAST PERFORMANCE DOES NOT GUARANTEE THE FUTURE ONES

Important Information

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This document is marketing material and will expire 12 months after issue.

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For investors in South Africa

Please be advised that BlackRock Investment Management (UK) Limited is an authorised Financial Services provider with the South African Financial Services Conduct Authority, FSP No. 43288.

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