Alternative Mutual Funds
As part of a thoughtfully constructed portfolio, alternative investments have the potential to provide above average returns and could even reduce your overall portfolio risk because they are less likely to move in tandem with stocks and bonds.
Mutual Funds: An Innovation in Implementing Alternatives
The past few years have witnessed the advent of alternative investment assets and strategies within mutual funds, notably long/short strategies, commodity- and currency-related investments, and specialized equity and fixed income. These types of funds are designed to seek out the diversified sources of return and risk typically accessed through alternatives, while offering a greater degree of liquidity, transparency and streamlined 1099 tax reporting.
Undoubtedly, there are a wide variety of funds from which to choose and considerations for how individual strategies will impact your overall portfolio. Alternative investments generally rely far more on the skill of the individual manager to generate returns than traditional stock and bond funds, where performance can depend highly on market moves. Clearly, this makes it all the more important to carefully select managers and fund strategies. Although asset allocation and diversification strategies do not ensure profits, it is important to seek diversification and avoid concentration of portfolio risk.
Making the Decision to Invest in Alternative Mutual Funds
Alternative investment mutual funds may provide an effective means of diversification and an attractive complement to traditional stock and bond investments in individual investor portfolios. Please consult with your financial professional regarding BlackRock alternative investment products and services that fit your overall asset allocation plan and risk profile.
Why Choose BlackRock?
With $104 billion of assets under management in alternative investments,* BlackRock is a preeminent provider of diverse alternative investments strategies globally, including hedge funds, private equity, real estate, commodities, currencies, infrastructure, renewable energy and other special opportunities. Please consult with your financial professional regarding BlackRock products and services that are available to you and that fit your overall asset allocation plan and risk profile.
* As of September 4, 2012.
The information on this Web site is intended for U.S. residents only. The information provided does not constitute a solicitation of an offer to buy, or an offer to sell securities in any jurisdiction to any person to whom it is not lawful to make such an offer.
Utilizing alternative investments involves substantial risk and presents the opportunity for significant losses including in some cases, losses which exceed the principal amount invested. Alternative investments have experienced periods of extreme volatility and in general, are not suitable for all investors.
Please consider the investment objectives, risks, charges and expenses of each fund before investing. For mutual funds and registered alternatives funds, the fund's prospectus and, if available, the summary prospectus contain this and other information about the fund. You can obtain a prospectus and, if available a summary prospectus by calling 800-882-0052 or from your financial professional. To obtain information about privately offered funds, please contact your financial professional to obtain fund offering documents. The prospectus or offering documents should be read carefully before investing.