Sun, May 27, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Blackrock launches global initiative to “turn short-term savers into long-term investors”

Wednesday, February 29, 2012
Opalesque Industry Update: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.

The multi-media initiative – the first of its kind by BlackRock – includes a range of ongoing communications for retail and institutional investors, partners and financial advisors, as well as investor education and advertising in a variety of digital, print and social media around the world.

“Investors are looking for answers in a new world where the returns they once took for granted are constrained by historically low yields, market volatility and shifting investment patterns. With today’s longer lifespans and uncertain returns, people are concerned about outliving their money in retirement and funding their children’s education. Wherever I go, the question I hear most often is: ‘So what do I do with my money?’ and we’re stepping forward to provide answers,” said Laurence D. Fink, BlackRock’s Chairman and Chief Executive Officer.

“We have a responsibility to our clients – and the working people and retirees many of them serve – as well as to our shareholders to offer straight talk and practical guidance for investors. That’s especially true now, as we have grown and moved deeper into serving individuals through their financial advisors. We founded BlackRock to provide answers and believe no one is better positioned to do so, given the breadth and depth of our capabilities across asset classes, markets and investment styles,” Mr. Fink continued.

Global, Multi-Media Initiative Provides Practical Actions for Investors

BlackRock launched Investing for a New World™ with a four-page insert 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.

“This new world of investing brings with it new opportunities as well – and to capture those opportunities, portfolios must be more flexible and diverse than ever. We want investors to know that putting money to work in long-term investments is one way that they can help meet their objectives,” Mr. Fink said. “Reigniting long-term investment is also a way we’ll seek to spur the growth needed to address the great public policy challenges we face, whether that is funding retirements, supporting education or rebuilding our infrastructure.”

Turning Short-Term Savers into Long-Term Investors

In a speech to the Council on Foreign Relations in New York today, Mr. Fink urged others in the asset management industry, and business and government leaders to work together to help reignite investment and growth through a focus on the long term.

“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.

“The transformational challenges – and the resulting crisis of confidence – that we face as a global society are daunting, but we are better equipped than at any time in human history to respond,” Mr. Fink said.

BlackRock

Press Release

BM

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Investing - Hedge funds hike Smurfit Kappa positions amid takeover deal hopes, Hedge fund IBV Capital digs deep to unlock long-term value in a competitive market, Eisman of 'The Big Short' fame recommends shorting Deutsche Bank[more]

    Hedge funds hike Smurfit Kappa positions amid takeover deal hopes From Irishtimes.com: Two US hedge funds, Davidson Kempner and York Capital, have accumulated a combined 4.74 per cent interest in cardboard box maker Smurfit Kappa using financial derivatives. It comes as many investors cl

  2. Foundations of hedge fund managers gave big to controversial donor-advised funds[more]

    In the world of philanthropy and tax-deductible charitable giving, the explosion of donor-advised funds has touched off intense debate. Now, there is evidence that the DAF boom is being further fuelled by hedge fund foundation money. Four of the top five foundations that gave the most to large do

  3. Third Point to raise $400 million for SPAC, Farley to run it[more]

    From Reuters.com: Daniel Loeb's hedge fund Third Point LLC plans to raise $400 million for a "blank check" company which will be run by outgoing stock market operator NYSE Group President Thomas Farley, according to a regulatory filing made on Tuesday. The new company, referred to on Wall Stre

  4. Study: For hedge funds, smaller is better[more]

    From Institutionalinvestor.com: The smaller the hedge fund is, the better its performance is likely to be, according to a new study. The study - "Size, Age, and the Performance Life Cycle of Hedge Funds," released April 26 - sought to determine whether a hedge fund's size and age had any effect on i

  5. Hedge fund returns rose in April for first gain since January[more]

    From Bloomberg.com: Bloomberg Hedge Fund Database shows returns flat this year - Currency strategies had the biggest monthly gain at 13% Hedge fund returns increased 0.78 percent in April, reversing two consecutive monthly declines. The swing of 134 basis points was driven by gains in all seven