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Business Upturn
16 hours ago
- Business
- Business Upturn
BlackRock to include private assets in retirement plans by 2026: Report
BlackRock, the world's largest asset manager, is set to introduce private market investments like private equity and private credit into its retirement plans, marking a significant shift in how retirement portfolios are structured, according to a Reuters report. The New York-based firm announced plans to launch a target-date retirement fund in the first half of 2026. This age-based investment vehicle will combine traditional asset classes like stocks and bonds with private market allocations for the first time. The move aims to enhance returns while diversifying retirement portfolios. According to a research paper released by BlackRock, the new retirement funds will include a 5% to 20% allocation to private assets, depending on the investor's age. The firm estimates this could boost returns by an additional 50 basis points annually. BlackRock's long-term portfolio outlook anticipates a 50% allocation to public equities, 30% to public fixed income, and 20% to private markets. As a step towards this goal, BlackRock will provide both public and private market investment options for a new target-date fund launched by Great Gray Trust, which manages over $210 billion in assets. Great Gray will utilize BlackRock's equity, fixed income, and private equity offerings for its retirement fund. However, industry experts note that while demand for private asset exposure is rising, concerns around liquidity, transparency, and litigation risks remain. BlackRock CFO Martin Small recently highlighted that a real pathway now exists for integrating private markets into target-date funds but emphasized that regulatory support will be key. Ahmedabad Plane Crash Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
Yahoo
16 hours ago
- Business
- Yahoo
BlackRock looks to expand private markets to retirement plans
(Reuters) -BlackRock is set to include private assets in its retirement plans as it expands into alternative investments, the world's largest asset manager said on Monday. The move marks a significant shift in how retirement products are structured, bringing traditionally illiquid and high-fee private market investments into mainstream retirement portfolios. The New York-based firm plans to offer a target-date fund - an age-based retirement investment that combines stocks, bonds and other assets - with allocations to private equity and private credit in the first half of 2026. Retirement money is a core business for BlackRock and accounts for more than half of the money the company manages. As a push towards that move, BlackRock is providing some public and private market offerings for a new target-date retirement fund offered by Great Gray Trust. Great Gray, which offers retirement investment options and manages over $210 billion in assets, will use BlackRock's equity and fixed income index offerings as well as private equity investments for its fund. The Wall Street Journal first reported the move earlier in the day. BlackRock's approach would include a 5% to 20% allocation to private assets in the retirement plans, depending on the investor's age, according to a research paper released on Thursday. While the demand for exposure to private assets has grown, some sponsors have concerns around adding them to retirement plans for reasons such as liquidity, transparency and litigation risk. BlackRock CFO Martin Small said earlier this month there was a real pathway for private markets making their way into target-date funds, adding that it will take some regulatory support. The firm estimates that adding private markets exposure to target-dated funds could increase returns by an additional 50 basis points each year. BlackRock anticipates portfolios in the future will comprise 50% public equities, 30% public fixed income and 20% private markets. Sign in to access your portfolio
