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A Report on
Global Investment Activity of Blackrock 2005-2015
Corporate Strategy
SEMESTER-III
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Submitted to: Submitted by: AKASH SHARMA (17pgdmbfs05)
PROF. P. Banerjee ANKUR GAGAR (17pgdmbfs09)
RAGHAV SHARMA (17pgdmbfs39)
SAMEER MALHOTRA (17pgdmbfs41)
SATYAM RAI (17pgdmbfs43)
EQUITY STRATEGIES
BlackRock Investment approach is built on three strategies built upon the legacy of innovation and commitment to Risk management.
Three strategies employed by BlackRock in investing into equities are as follows :-
Fundamental Equity
BlackRock’s Fundamental Equity team actively manages portfolios, built on the foundations of proprietary fundamental research, with a goal of delivering outperformance to clients in line with their investment objectives. They offer access to the opportunities, information and resources available to a global asset manager combined with the agility of autonomous investment teams.
The Fundamental equity teams make their own investment decisions within a prescribed framework, aligned with the firm's rigorous risk management practices. Each team invests according to its unique philosophy, process and style and has a high level of discretion to allocate across regions and countries (where applicable), industries and individual stocks. Their fundamental strategies seek to identify and exploit market inefficiencies in the pursuit of alpha. They include: Global, Regional, US Equity and Sector-Specific approaches.
Scientific Active Equity
BlackRock has pioneered scientific active equity (SAE) investment solutions since 1985. Their investment philosophy is based on an internally developed, model-driven investment approach that aims to balance risk, return and cost while seeking consistent outperformance versus a benchmark. They use technology to systematically apply Their investment insights in a risk controlled framework, with the goal of maximising alpha for a given level of risk.
Index Equity
They pioneered the first index fund in 1971 and have continued to innovate as markets and client needs evolve. They were the first company to offer clients the opportunity to invest in developed markets equity, emerging markets and frontier markets index strategies. Their platform provides clients with the ultimate toolkit to meet their highly individualised and evolving indexing needs and enables us to create bespoke investment options quickly from Their extensive and growing catalogue of solutions. As part of Their effort to innovate responsibly for Their clients, BlackRock’s iShares business offers the world’s largest family of professional quality exchange-traded funds.*
MULTI-ASSET STRATEGIES
Talking about the multi-asset investments, the approaches that BlackRock follows while investing are as follows:-
Global Tactical Asset Allocation
These flexible, total portfolio solutions provide BlackRock’s clients with a means of adding value both in absolute return and versus custom benchmark portfolios. Ideas are generated from a blend of fundamental and systematic research and focus on top down asset-class and regional economic views. Insights are mapped into targeted exposures across multiple asset classes – including equities, fixed income, and exchange rates. Subject to client specific constraints, the tools include custom thematic equity baskets, index based strategies, derivatives, and actively-managed pooled funds from BlackRock,. The outcome-oriented approach ensures that positions reflect clients’ risk appetite and desired return profiles.