The BlackRock Consensus Funds mainly offer exposure to UK and international equities markets and fixed income instruments, and can also provide exposure to alternative assets, such as property. They act like funds of index funds by investing in a proprietary range of index tracker funds called BlackRock Collective Investment Funds. By investing in this way, the BlackRock Consensus Funds provide diversified exposure through a simpler and lower-cost approach than many traditional core portfolio allocations.
The five Funds seek to achieve total returns and are managed by BlackRock's Multi-Asset Client Solutions portfolio management team, which monitors the Funds on a daily basis, actively implementing positions and allocating assets between different market sectors.
Each Consensus Fund has an independent risk-rating out of ten. These simple ratings mean investors can be easily matched with a portfolio that suits their risk appetite and their return objectives. Weighted allocations are made broadly in-line with industry-managed sector averages.
Tony Stenning, Head of UK Retail at BlackRock, comments:
"RDR, coupled with volatile stock markets, has prompted many advisers to consider outsourcing aspects of fund selection and portfolio management to help clients create diverse and flexible portfolios. We have developed the BlackRock Consensus Funds to help them achieve this with simple, cost-effective investment solutions that give full access to BlackRock's experience and expertise.
"In today's new world of investing, advisers are increasingly seeking solutions which can be easily classified from a risk-return perspective. BlackRock Consensus Funds allow advisers to implement strategies for their clients quickly and efficiently. In addition to their simplicity, they cater for a variety of risk appetites, allowing investors to switch exposures between the different funds. In essence, the Funds truly support an outcome-driven conversation with investors."
In June 2012, BlackRock undertook research with NMG Consulting into 278 UK-based financial advisers and found that 36 per cent of advisers were intending to increase their use of index tracker funds and 33 per cent planned to up their use of multi-asset passive fund of funds post-RDR.
With the advent of RDR, BlackRock now has the ability to offer investors a full range of investment solutions ranging from risk-rated multi-asset solutions using the BCIF index-tracking funds to ETFs via the iShares business, through to investment trusts which operate in a closed- ended structure.
