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.

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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.

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Tamara Stats

BlackRock Australia has announced its intent to launch the iShares 20+ Year U.S. Treasury Bond ETF (AUD Hedged) (ASX: ULTB) with a management fee of 0.15%. This latest addition extends the local iShares fixed income range, offering Australian advisers and investors more precise fixed income investment options for their portfolio.

The iShares 20+ Year U.S. Treasury Bond ETF (AUD Hedged) (ASX: ULTB) aims to provide Australian advisers and investors with targeted exposure to long-end U.S. Treasury bonds. Australian investors may consider ULTB for portfolio diversification, as adding duration can provide defence against potential market volatility and during periods of slowing growth. Benchmarked to the ICE US Treasury 20+Year Bond AUD Hedged index, ULTB represents the longest duration exposure available within the locally listed iShares product range.

ULTB is expected to list on the ASX in early September.

James Waterworth, Director, Wealth Distribution, BlackRock Australasia said, “We have added ULTB to our local iShares product range, responding to Australian advisers and investor demand for more choice when it comes to precise fixed income exposures.

“Bond yields globally are at decade-highs, and if inflation indicators continue to fall, central banks may proceed to cut official cash rates. We believe investors have a window of opportunity to move out of cash and into fixed income exposures to lock in these higher yields, because the market has tended to price in changes to cash rates well before they occur.

“This could be achieved by long-end bond exposures like ULTB, which enable Australian investors to add duration in a simple and low-cost way. Alongside our Australian long duration government bond exposure ALTB, we now offer investors one of the broadest ranges of Australian-listed fixed income and cash ETFs available to build a well-diversified fixed income allocation in their portfolios.”

Tamara Stats, iShares and Index Investments Specialist, BlackRock Australasia said, “BlackRock is pleased to now offer access to long-end U.S. Treasury bond exposures, like ULTB, to Australian portfolio builders and investors, bringing one of its flagship exposures to the Australian market.

“U.S. Treasury bonds are considered one of the highest quality assets due to their low level of default risk, offering defensive benefits to the broader portfolio. The historic inverse relationship between stocks and bonds has been challenged in recent years. As inflation starts to return to target, we may see the historic correlation restored. Therefore, ULTB could be a very useful tool for portfolio diversification.

“Hedged to the Australian dollar, ULTB also offers Australian investors an additional layer of stability without having to weather the ups and downs of foreign exchange risk.”

ULTB is the latest addition to BlackRock’s iShares fixed income ETF offering, which represents one of the broadest ranges of fixed income and cash ETFs in Australia. The range provides investors with low-cost index solutions for income generation, capital preservation, or portfolio diversification.

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