BlackRock Multi-Asset Real Return Fund
Preparing to Beat Inflation
Inflation poses a portfolio risk that can go virtually unnoticed until it spikes to headline grabbing levels. However, even gradual inflation can dramatically decrease purchasing power over time.
Theuses a flexible investment strategy to look for inflation protection regardless of economic conditions.
To learn more about the features of the fund, please view the Investor Guide.
When Should You Start to Worry About Inflation?
- Inflation is a Fact of Life: While inflation of 2.5% may not sound worrisome, it can result in the loss of nearly half your purchasing power over 25 years. In other words, it will take about $1,000 to buy the same goods worth $500 today.
- No Single Asset Class Outperforms All of the Time: What will work best against inflation today can be very different than what did in the past, so it is wise to consider multiple safeguards.
- Tactical Implementation is Key: We believe protecting your portfolio against inflation requires a flexible solution that can quickly adapt to different market environments.
The BlackRock Multi-Asset Real Return Fund
Comprehensive, Core Inflation Protection
We believe that preserving future purchasing power comes from investing in a diverse mix of assets that have performed well against inflation. The BlackRock Multi-Asset Real Return Fund is designed to provide investors with a comprehensive solution that seeks returns that beat inflation ("real returns") over the course of a market cycle.
A Tactical, Outcome Oriented Approach
Individual categories of inflation-linked investments have reacted to specific inflationary environments with different levels of performance and volatility. The fund's portfolio team has the flexibility to dynamically reorient the portfolio, allocating across a broad range of assets in response to changes in the rate of inflation and general state of the economy.
Global Inflation Expertise
The fund is managed by a portfolio team with deep expertise in customized portfolio solutions. With over $30 billion in assets under management, they leverage the scale, global market insight and cutting-edge risk management capabilities of the world's largest asset manager. This combination of experience and resources enables the team to look beyond the limitations of publicly available data and get a real view of the key drivers of inflation.
IMPORTANT RISKS OF THE FUND
Past performance is no guarantee of future results. The fund is actively managed and its characteristics will vary. Any holdings shown are for information only and should not be deemed as a recommendation to buy or sell the securities mentioned. Stock and bond values fluctuate in price so the value of your investment can go down depending on market conditions. International investing involves risks, including risks related to foreign currency, limited liquidity, less government regulation and the possibility of substantial volatility due to adverse political, economic or other developments. These risks often are heightened for investments in emerging / developing markets or smaller capital markets. The two main risks related to fixed income investing are interest-rate risk and credit risk. Typically, when interest rates rise, there is a corresponding decline in the market value of bonds. Credit risk refers to the possibility that the bond issuer will not be able to make principal and interest payments. Investing in commodity-linked derivative instruments and equity securities of commodity-related companies may subject the Fund to greater volatility than investments in traditional securities. The commodities markets have experienced periods of extreme volatility. The main risk of real estate securities is that their value may go down depending on economies, vacancy rates, interest rates, tenant bankruptcies, amount of new construction in an area, laws and regulations and real estate maintenance and improvement. Asset allocation strategies do not assure profit and do not protect against loss. Non-diversification of investments means that more assets are potentially invested in fewer securities than if investments were diversified, so risk is increased because each investment has a greater effect on performance. Investing in derivatives entails specific risks relating to liquidity, leverage and credit that may reduce returns and / or increase volatility.
Investors should consider the investment objectives, risks, charges and expenses of any fund carefully before investing. The funds' prospectuses and, if available, the summary prospectuses contain this and other information about the funds, and are available, along with information on other BlackRock funds by calling 800-882-0052. The prospectus and, if available, the summary prospectuses should be read carefully before investing.
Prepared by BlackRock Investments, LLC, member FINRA.