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Diversification in a changing landscape

“As an industry, we’re getting better at framing investments in terms of the ‘why’ for our investors,” says Christie. 

“Of course, we always aim to improve at how we build well-diversified portfolios with institutional-grade risk management, but I think we’re getting better at building them in a way that aligns with investors’ goals, and their ability and willingness to take risk in the pursuit of achieving those goals.”

The increasing interest from advisers’ clients in portfolios that invest with ESG factors incorporated is a good example of this.

“It’s wonderful that data, technology, and market access now allows us to build high quality portfolios that align to investors’ risk and return needs as well as their increasing preference for sustainability in all areas of their lives – including their investments,” Christie adds.

What is the MyMap range?

After identifying a gap in the multi-asset fund market for a suite of simple, low-cost funds, which could deliver against investors’ goals because they took a ‘risk-first’ perspective, BlackRock launched its MyMap range of funds.

The MyMap portfolios are a series of UK-domiciled, daily-dealing multi-asset funds, investing in a diversified portfolio of iShares ETFs and index funds.

So far, the MyMap range comprises four core growth portfolios of varying levels of risk and one ESG portfolio, all with a total expense ratio (TER) of 17bps, and a recently-launched income portfolio, with a TER of 28bps.

BlackRock has identified that there is scope to expand the range further, given growing investor awareness of the environmental, governance and social impact of their investments, as well as the ongoing need for income.

Christie says: “BlackRock is committed to making sustainability our standard, and as such it was incredibly important to us that we offer investors the choice of investing in an ESG version of the existing core MyMap portfolios. 

“We only see this area growing as individuals increasingly align how they consume and invest with their beliefs.”

If you’re keen to know more about the 60/40 debate, join an upcoming webinar hosted by FTAdviser and sponsored by BlackRock, in which a panel of expert speakers will discuss if the traditional 60/40 strategy is still relevant. This 50-minute webinar, which takes place on 30 November at 11am GMT, will bring together financial advisers seeking to secure the greatest returns for their clients and will be chaired by Damian Fantato, Digital Editor, FTAdviser.

Register here for the webinar on “The changing landscape: Is the 60/40 balance fit for the future?”