Thu, Oct 2, 2014
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   |   

Banner

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. Legal - Court throws out lawsuits related to Fannie Mae, Freddie Mac profits, Insider case by SEC is a step removed from Herbalife itself, SEC grants Citigroup waivers, easing hedge-fund curbs[more]

    Court throws out lawsuits related to Fannie Mae, Freddie Mac profits From WSJ.com: A group of Wall Street investors on Tuesday suffered a blow in their attempts to sue the federal government over their treatment of the shareholders of mortgage finance giants Fannie Mae and Freddie Mac af

  2. Launches - Goldman Sachs Asset Management launches GS Long Short Fund, Western & Southern launching international hedge fund, Lansdowne Partners plans energy hedge fund, RBC Global Asset Management launches new RBC Funds (Lux) - Asia Ex-Japan Fund, PVE Capital latest credit strategy to launch on the Sciens managed account platform[more]

    Goldman Sachs Asset Management launches GS Long Short Fund From Marketwatch.com: Goldman Sachs Asset Management has announced the launch of the Goldman Sachs Long Short Fund, which pursues high conviction investment ideas in global equity markets through a fundamental, bottom-up approach

  3. CalPERS’ move might alter hedge fund fees for good[more]

    Benedicte Gravrand, Opalesque Geneva: When CalPERS, the California Public Employees’ Retirement System, announced on September 15th that it was unwinding its hedge-fund portfolio, it was seen by many as is a significant blow to the sector’s appeal. The Fund is

  4. Opalesque Exclusive: Institutions eye private credit over traditional fixed income[more]

    Bailey McCann, Opalesque New York: Investing in private insurance, realty tax receivables, or investment-grade short-term accounts receivable may not spring to mind as a means of mitigating risk in a portfolio, but one firm, New York-based BroadRiver Asset Management is out to change all that. Th

  5. Short-term trading quant fund beats S&P since '09[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: A relatively new multi-strategy, market-neutral quantitative hedge fund has managed to outperform the S&P500 and the HFRX Global since 2009. New Jersey-ba