Core Strategies Offer Access to Industry Leading Solutions
Plan sponsors face unique challenges when selecting core investment options for participants who prefer to build their own portfolios. Should you offer index or active funds, or both, and which vehicles or asset classes make the most sense to include in your plan?
When evaluating the benefits of Comingled Vehicles, Mutual Funds and Exchange Traded Funds for a DC plan, it is important to keep in mind that there can be a place for all three, as well as others. The key is understanding each vehicle and making informed decisions about what is appropriate for your plan and participants.
Depending on the objectives you have set for your plan, BlackRock can partner with you and help guide your evaluation process to find the right investment vehicle for your plan.
1. Comingled Vehicles take advantage of economies of scale to provide low-cost, flexible choices.
2. Mutual Funds are easy for participants to understand, highly transparent and available in a wide range of active and passive strategies.
3. Exchange Traded Funds leverage their unique structure and flexibility to provide highly efficient investment building blocks for your DC plan.
An investment in the BlackRock core funds is subject to various risks. For core funds that invest in equities, a major risk is stock market risk, which means the price of the stocks in which the underlying funds invest may fluctuate or fall in response to economic events or trends. The prices of bonds in which the core funds may invest may fall because of a rise in interest rates. Investments in foreign securities by the core funds are subject to certain special risks and considerations, including potentially less liquidity and greater price volatility than securities traded in the U.S. markets. Investments in emerging markets may involve heightened risks related to the same factors described above, as well as lower trading volume and other risks. Investments in smaller companies and narrowly focused investments typically exhibit higher volatility. There is no assurance that BlackRock's index and active strategies will either maximize returns or minimize risk. The funds must maintain cash balances to meet redemption requests, which may lower overall fund performance. BlackRock Institutional Trust Company, N.A., a national banking association operating as a limited purpose trust company, manages the collective investment products and services referred to in this publication and provides fiduciary and trust services to various institutional investors. Funds maintained by BlackRock Institutional Trust Company, N.A. are not insured by the Federal Deposit Insurance Corporation and are not guaranteed by BlackRock or its affiliates.