Blackrock Portfolio Review
Mar 13, 2018
Last month the investment management firm, Blackrock, asked to run an analysis on our model portfolios. Blackrock is the world’s largest asset manager and they have a program called ‘Aladdin’ they developed. It is widely considered an elite risk management analyzer in the industry and is used by many mutual fund managers to ensure their portfolios are in line with an appropriate amount of risk.
The results of the analysis came back very positive. Risk in our portfolios matches with where it is supposed to be and they only recommended a few minor tweaks (a couple percent allocation to this fund instead of another one) based on their view of the markets moving forward. Their suggestions were increasing our international exposure even more than we already had by a couple percent and the importance of focusing on holding the right types of bonds as we have seen a somewhat volatile bond market with interest rates being steadily increased by the Federal Reserve. They also gave us some suggestions of where we could take risk off the table in our portfolios if we were to get into a down market (which they don’t anticipate happening in the near term).
Overall, we left the analysis feeling very optimistic and it verified that our portfolios were performing well compared to their benchmarks without taking on excess risk.
Investments in securities do not offer a fixed rate of return. Principal, yield and/or share price will fluctuate with changes in market conditions and, when sold or redeemed, you may receive more or less than originally invested. No system or financial planning strategy can guarantee future results.