Investing is a powerful wealth building strategy, enabling you to achieve your financial goals. Whether you’re growing your retirement nest egg, saving for your dream home, or simply building your financial security, the right investment strategy can help you reach your goals.
Investing in the stock market is both accessible to retail investors and a tried-and-tested strategy to grow your wealth over time. Investors can go down the do-it-yourself way by buying individual stocks or getting professionals to manage their funds. Of course, you can also have a blend of both methods.
Those who prefer professional guidance for their investments can explore the managed portfolios route - typically created by robo-advisors. These portfolios are designed to provide investors with a diversified and professionally managed investment solution.
Today, robo-advisors don't just offer their own managed portfolio. Now, there are also managed portfolios tagged to BlackRock. We explore BlackRock's portfolios offered by two platforms in Singapore, StashAway and Saxo Markets, detailing how investors can access them.
Read Also: Robo Advisors In Singapore (2024): What You Need To Know Before Investing
What Is BlackRock?
BlackRock is a global investment management corporation and the world’s largest asset manager, overseeing more than US$8.5 trillion of assets globally. It employs over 19,000 people in 42 countries.
Founded in 1988 with just eight people, BlackRock has built a reputation for offering a diverse range of investment solutions, serving institutional investors such as governments, insurance companies, pension plans, educational and non-profit organisations and financial advisors, as well as individuals and families.
Its ability to manage risk and offer well-diversified products makes BlackRock a popular choice for those seeking professional management of their investments.
What Is A Blackrock Managed Portfolio?
A BlackRock Managed Portfolio is essentially an investment portfolio, created and actively managed by BlackRock's team of experts. These portfolios can consist of a mix of assets, including stocks and bonds, designed to match specific risk tolerance levels and financial goals.
The appeal of a BlackRock Managed Portfolio lies in the expertise backing it. As an investor, you’re not left to navigate complex markets on your own. Instead, BlackRock's investment strategies leverage decades of experience to optimise your portfolio for long-term growth, all while managing risk appropriately according to your risk tolerance.
In Singapore, StashAway and Saxo Markets are robo-advisors that offer managed portfolios comprising BlackRock managed ETFs, iShares.
As part of BlackRock, iShares has been a leader in the ETF marketplace for more than two decades. Engineered by its investment professionals with deep risk management expertise, iShares offers over 1,400 ETFs globally.
Investing in StashAway's General Investing Portfolio Powered by BlackRock
StashAway is a popular digital wealth management platform that offers personalised investment portfolios, one of which includes portfolios analysed and guided by BlackRock.
According to StashAway, the portfolio is its most diversified portfolio yet, with 15 to 25 underlying iShares exchange-traded funds (ETFs). Its investment strategy is to provide the broadest market exposure while optimising for long-term returns.
There are four different equity-bond ratios for the BlackRock-powered General Investing portfolios that investors can choose from according to their risk tolerance: 20-80, 60-40, 80-20, and 100-0.
Since its inception in October 2016, the very aggressive portfolio comprising almost entirely equities, had an annualised return of 11.1% (in SGD terms) (in the screengrab below).
Source: StashAway
Since inception, its other portfolios also earned relatively good returns based on its portfolio allocation:
– Conservative: 3.7% (Equities: 21.8%; Bonds: 75.2%; Others 2%; Cash and Cash Equivalents: 1%)
– Balanced: 7.3% (Equities: 61.4%; Bonds: 35.7%; Others 2%; Cash and Cash Equivalents: 1%)
– Aggressive 9.5% (Equities: 81.2%; Bonds: 15.9%; Others 2%; Cash and Cash Equivalents: 1%)
– Very Aggressive: 11.1% (Equities: 99%; Cash and Cash Equivalents: 1%) (screengrab above)
StashAway's General Investing Portfolio Powered by BlackRock also has no minimum balance nor monthly requirements, with a low expense ratio of 0.2% per annum.
You can open an account with StashAway to start investing in one of its four General Investing portfolios powered by BlackRock.
Enjoy 50% Management Fees For 6 Months With StashAway
For those who are interested to try the StashAway platform for yourself, StashAway is giving 50% off in management fees for 6 months, for up to $50,000 in portfolio value.
That makes it perfect for giving StashAway a try and see if it is the robo-advisor for you. You can sign-up for free today to enjoy this exclusive promotion.
Read More: Investing With StashAway: How You Can Build Multiple Portfolios Through A Single Robo-Advisor
Investing in BlackRock Managed Portfolios Through Saxo Markets
While Saxo also offers managed portfolio, it is also a full-suite brokerage that provides a wider range of investment opportunities, such as stocks, ETFs, bonds, mutual funds, and including access to BlackRock Managed Portfolios via its SaxoSelect product.
Similarly, investors can choose from different risk levels for Saxo, ranging from Defensive to Aggressive. Here's a quick comparison of the three different BlackRock managed portfolios available under Saxo:
| |
Defensive USD |
Moderate USD |
Aggressive USD |
| Ideal for |
Cautious investing, offering high exposure to bonds |
Investing for a balance between growth and capital preservation |
Investing for growth, offering high exposure to stocks |
| Minimum investment |
US$10,000 |
| Average return since inception |
1.66% |
5.61% |
7.40% |
| Risk level |
Low |
Medium |
High |
| Total expected cost |
Starts from 0.98% per annum |
Source: Saxo
Open an account with Saxo to start investing in their BlackRock managed portfolios, or other investment products.
Read More: Step-By-Step Guide To Opening A Saxo Markets Trading Account In Singapore
Investing In A BlackRock Managed Portfolio
Both StashAway and Saxo provide excellent options for accessing BlackRock's portfolios, but the right choice depends on your individual needs as an investor.
When deciding between StashAway and Saxo to invest in BlackRock funds, it’s essential to weigh the key differences, including fees, ease of use, minimum amount and portfolio customisation.
For example, StashAway does not have a minimum investment amount and may offer a slightly more cost-effective fee, while Saxo offers more diverse range of investment products, customisation and personal guidance. While both StashAway and Saxo have a user-friendly platform, Saxo's platform is also designed to give users more control.
Cover Image credit: BlackRock
The post How You Can Invest In A BlackRock-Managed Portfolio Through StashAway And Saxo Markets appeared first on DollarsAndSense.sg.
