It’s a new world out there for investors. The financial crisis and its lingering effects have precipitated major changes in financial markets and created unfamiliar challenges. Bonds are behaving differently, the relationships between asset classes are shifting, and the conventional wisdom on investing has been turned on its ear.
Many investors have begun to wonder if the portfolio they have today will support the life they want tomorrow. You want higher returns, but also protection against today’s risks. That’s why you might be asking: So, what do I do with my money?
Rethink your bonds
For decades, investors have relied on bonds to provide strong, reliable returns. But traditional bonds aren’t offering the returns they used to, and if interest rates rise or inflation picks up, investors could actually lose money. Assets once thought safe may now be risky.
That’s why investors need to rethink bonds—to take an approach that addresses the unique challenges of today’s bond market.
BlackRock’s Strategic Income Opportunities Fund offers an adaptable strategy for the new bond landscape. Instead of being tied to a benchmark, the fund provides a free-moving, all-weather approach to help reduce risk while capturing new opportunities. In fact, over a 3 year period ending in June, the fund out-yielded the average traditional core bond fund 100% of the time, with greater protection against rising interest rates1.
Look further to find income
These low bond yields aren’t just creating a new set of risks—they’re also squeezing investors. You need more income, but you also want to protect against the volatility of a traditional stock or bond fund. What is the potential solution? A fund that looks further to find income.
BlackRock’s Multi-Asset Income Fund scours the globe to seek opportunities across asset classes while trying to guard against hidden risks. The fund seeks to provide you the three things you need in today’s uncertain markets: higher income, lower risk, and attractive returns. The fund has delivered double the yield of the average traditional bond fund since the inception of its current strategy, with less risk than a traditional stock and bond portfolio2.
BlackRock’s capabilities—and solutions—are built for these times. They combine our insight, access and technology in an effort to deliver the investing advantage you need to meet your goals in today’s markets.
We have a range of solutions to help you navigate today’s challenging investment landscape. So speak to your financial advisor today or visit BlackRock.com to learn more.
This article was written by BlackRock and not by the Quartz editorial staff.
Call 1-855-BLK-8880 for more information. Visit BlackRock.com or contact your financial professional for a prospectus or summary prospectus, which includes investment objectives, risks, charges, expenses and other information that you should read and consider carefully before investing. Investing involves risk, including possible loss of principal. Fixed income risks include interest rate and credit risk. Typically, when interest rates rise, there is a corresponding decline in bond values. Credit risk refers to the possibility that the bond issuer will not be able to make principal and interest payments. Prepared by BlackRock Investments, LLC. ©2013 BlackRock, Inc. All rights reserved. BLACKROCK, SO WHAT DO I DO WITH MY MONEY, INVESTING FOR A NEW WORLD, and iSHARES are registered and unregistered trademarks of BlackRock, Inc. or its subsidiaries in the United States and elsewhere. Usr-2877.