BlackRock Australia celebrates the 10th anniversary of its Enhanced Strategic Model Portfolios (ESMP) 

BlackRock Australia is proud to mark the 10-year anniversary of its Enhanced Strategic Model Portfolios (ESMP), the firm’s inaugural managed account offering in the local wealth market. Since its inception in 2015, ESMP has become a cornerstone of BlackRock’s wealth offerings in Australia, providing a diversified portfolio investment solution to Australian advisers and their clients with the efficiency benefits of a managed account structure.^[1]

The ESMP offers six risk profiles: Conservative, Moderate, Balanced, Growth, Aggressive, and All Growth. The suite is built and managed by BlackRock’s Multi-Asset Strategies and Solutions (MASS) team, which has a 32-year track record of managing multi-asset portfolios in Australia.^[2]

Over the past ten years, the ESMP has delivered strong performance, with cumulative returns outperforming the peer group median. An investor who invested $100,000 in the Enhanced Strategic Growth Model Portfolio at the start of 2015 would have seen their investment double, reaching approximately $200,000 by 2024.^[3]

Katie Petering, Head of Multi-Asset Investment Strategy, BlackRock Australasia, said, “We are excited to commemorate the 10^th anniversary of the BlackRock Enhanced Strategic Model Portfolios, which have driven innovation in the Australian managed accounts industry. These portfolios deliver a market-aware, diversified investment solution^[4] and support advisers in building better portfolios for their clients. Over time, our Australian managed accounts franchise has grown from a single model family to ten, reflecting advisers’ and investors’ evolving investment preferences and risk tolerance.

“BlackRock is pleased to deliver institutional-quality portfolios to Australian investors that best meet their investment goals. ESMP’s success can be attributed to the robustness of BlackRock’s MASS investment process, which included over 50 rebalances across different market cycles in the past ten years, and the monitoring of over 3,000 risk factors through Aladdin, BlackRock’s proprietary risk management platform.”^[5]

James Waterworth, Director of Wealth, BlackRock Australasia, said, “Managed accounts have become the key wealth offering that Australian advisers use to scale their practices in order to serve their clients. BlackRock is proud to reach the 10-year milestone of our Enhanced Strategic Model Portfolio suite, which is now available on ten platforms, enhancing accessibility for advisers. 

“Our managed accounts offerings now incorporate a range of investment styles, including active, index, and ESG models, to support advisers to deliver multi-asset investment solutions that align with their clients’ specific risk/return investment goals.”

This milestone follows the launch of BlackRock Active Multi-Asset Model Portfolios (“Active Model Portfolios”) in July 2024 in response to evolving the managed accounts industry for the benefit of Australian advisers and their clients.

Established in 1992^[6], BlackRock’s MASS team today has over A$67 billion in assets under management ^[7]across its diversified funds range, model portfolios, absolute return strategies, and custom mandates.

——–

Notes:
[1] BlackRock model portfolios themselves are not funds issued by BIMAL. They are offered through third party platform providers which are no affiliated with BIMAL. Any potential investor should consider the latest PDS issued by the third-party platform provider before deciding whether to acquire, or continue to hold, an investment
[2] History includes predecessor firms
[3] Source: BlackRock and Lonsec’s iRate portal, as of 31 December 2024. Peer Group Median is proxied by the FE UT PG Multi-Asset Growth Index. The model portfolios have an inception date of 30 January 2015. Simulated past performance is not a reliable indicator of future performance. The model performance shown is hypothetical and for illustrative purposes only. The performance may not represent the performance of an actual account or investment product and is not the result of any actual trading. Model performance is estimated and net of underlying fund fees, but gross of platform fees and does not include brokerage and commissions that may be incurred in the trading of financial products within the model portfolio. Actual investment outcomes may vary. Material differences may exist between models and peer groups being compared, such as, investment objectives, fees and expenses, types of investments made, countries or markets covered.
[4] Diversification and asset allocation may not fully protect you from market risk.
[5] While proprietary technology platforms may help manage risk, risk cannot be eliminated.
[6] History includes predecessor firms.
[7] Source: BlackRock as at 30 September 2024. All figures in AUD.