BlackRock, Inc. (NYSE: BLK) today launched a multi-faceted global initiative that offers investors practical actions for building more dynamic, more diverse portfolios that these times require. Investing for a New World™ is designed to help investors large and small confront the challenges of low yields and volatile markets in today’s complex investment environment.
Global, Multi-Media Initiative Provides Practical Actions for InvestorsBlackRock launched Investing for a New World™ with a four-page insert that appeared in major media outlets online and in leading global newspapers. BlackRock has also established a dedicated website for investors at www.blackrock.com/newworld with tools, guidance and thought leadership, including from the BlackRock Investment Institute. The initiative outlines five practical actions to help investors take advantage of a broader array of assets, strategies and investment styles. They include:
- Rethinking the cost of holding cash and how even low rates of inflation erode its purchasing power over time;
- Seeking new sources of income with the potential to provide for current financial needs as well as build wealth over the long term;
- Considering the potential of alternative investment vehicles to provide above-average returns and manage risk as they are less likely to move in tandem with stocks and bonds;
- Actively employing index-based products, such as ETFs, to access a wider range of markets efficiently and effectively; and
- Taking advantage of increasing longevity by re-evaluating risk tolerances and asset allocations in light of longer investment horizons.
“In this new world, we can help rebuild confidence, get markets moving again and restore growth by turning short-term savers into long-term investors. It’s our responsibility as leaders of business, finance and government. All of us must answer the call,” Mr. Fink told the audience.In his address, Mr. Fink called on the asset management industry to join with companies to help investors take a long-term view. “We have to step up to offer guidance and provide answers,” Mr. Fink said. “To finance longer lifespans, we must convince individuals to start investing now for the long term. Their longevity is an asset to be leveraged, not a curse.” Mr. Fink added: “We need to educate investors about confronting the growing gap between needs and resources for retirement. That means getting investors beyond the now inadequate 60/40 portfolio mix of stocks and bonds. In particular, companies have a moral responsibility to educate their employees. Shifting from a defined benefit to a defined contribution plan doesn't absolve them of that responsibility.” Mr. Fink advocated initiatives to promote confidence in the capital markets, which he said were an increasingly vital source of investment capital for businesses as bank lending is constrained. These include:
- Regulation to protect collateral clients post when centrally clearing derivatives;
- A capital gains tax regime that rewards investment over multiple years by extending the holding period for an investment to qualify to at least three years and imposing a rate schedule that declines over longer holding periods; and
- Long-term government investment in infrastructure, research and education to maintain competitive workforces and growing economies.
About BlackRockIn a world that is shifting and changing faster than ever before, investors who want answers that unlock opportunity and uncover risk entrust their assets to BlackRock. As an independent, global investment manager, BlackRock has no greater responsibility than to its clients. It’s why many of the world’s largest pension funds and insurance companies trust BlackRock to understand their unique objectives and why financial advisors and investors partner with BlackRock to help them build the more dynamic, diverse portfolios these times require. BlackRock has built its offering around its clients’ greatest needs: providing breadth of capabilities – and depth of knowledge – across active and passive strategies, including iShares ® ETFs, and the unique ability to look across asset classes, geographies and investment strategies to find the right solutions. This is grounded in a deep belief in data and analytical rigor, anchored in the risk management expertise of BlackRock Solutions ®. With deep roots in every region across the globe, some 100 investment teams in 27 countries share their best thinking and insights to seek better, more consistent returns through time. BlackRock®. Investing for a New World™ www.blackrock.com/newworld Follow us on Twitter: @BlackRockCo © 2012 BlackRock, Inc. All rights reserved. BLACKROCK, BLACKROCK SOLUTIONS, ALADDIN, iSHARES, LIFEPATH, SO WHAT DO I DO WITH MY MONEY, INVESTING FOR A NEW WORLD, and BUILT FOR THESE TIMES are registered and unregistered trademarks of BlackRock, Inc. or its subsidiaries in the United States and elsewhere. All other trademarks are those of their respective owners. Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50186481&lang=en