INVESTING FOR A NEW WORLD™ Helps Investors Capture Opportunity Through More Dynamic, Diverse Portfolios
Chairman and CEO Laurence D. Fink Says Asset Managers, Business and Government Must “Turn Short-Term Savers into Long-Term Investors”
(BUSINESS WIRE)-- 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 that appeared in major media outlets online and in leading global newspapers. BlackRock has also established a dedicated website for investors at www.blackrock.com/newworldwith 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.
About BlackRock
In a world that is shifting and changing faster than ever before, investors who want answers that unlock opportunity and uncover risk entrust their assets to BlackRock. As an independent, global investment manager, BlackRock has no greater responsibility than to its clients. It’s why many of the world’s largest pension funds and insurance companies trust BlackRock to understand their unique objectives and why financial advisors and investors partner with BlackRock to help them build the more dynamic, diverse portfolios these times require.
BlackRock has built its offering around its clients’ greatest needs: providing breadth of capabilities – and depth of knowledge – across active and passive strategies, including iShares® ETFs, and the unique ability to look across asset classes, geographies and investment strategies to find the right solutions. This is grounded in a deep belief in data and analytical rigor, anchored in the risk management expertise of BlackRock Solutions®. With deep roots in every region across the globe, some 100 investment teams in 27 countries share their best thinking and insights to seek better, more consistent returns through time.
BlackRock®.Investing for a New World™ www.blackrock.com/newworld Follow us on Twitter: @BlackRockCo
© 2012 BlackRock, Inc. All rights reserved. BLACKROCK, BLACKROCK SOLUTIONS, ALADDIN, iSHARES, LIFEPATH, SO WHAT DO I DO WITH MY MONEY, INVESTING FOR A NEW WORLD, and BUILT FOR THESE TIMES are registered and unregistered trademarks of BlackRock, Inc. or its subsidiaries in the United States and elsewhere. All other trademarks are those of their respective owners.
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Contacts
BlackRock, Inc.
Bobbie Collins, 1-212-810-8155
bobbie.collins@blackrock.com
Lauren Trengrove, 1-212-810-3665
lauren.trengrove@blackrock.com
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