BlackRock, one of the world’s largest asset managers, has added bitcoin to its Blackrock Global Allocation Fund, a popular fund for both passive and active investors. The fund invests in a diversified mix of equity, debt, and short-term securities from corporate and government issuers, without any predetermined limits. This move marks a major shift in institutional investor sentiment towards bitcoin, as BlackRock is one of the largest institutional investors in the world. It is a significant step towards bitcoin’s mainstream adoption and could help drive further institutional investment into the digital currency.
In normal market conditions the Fund will invest at least 70% of its total assets in the securities of corporate and governmental issuers.
The Fund generally will seek to invest in securities that are, in the opinion of the Investment Adviser, undervalued.
The Fund may also invest in the equity securities of small and emerging growth companies. The Fund may also invest a portion of its debt portfolio in high yield fixed income transferable securities. Currency exposure is flexibly managed.
Blackrock Global Allocation Fund
The Blackrock Global Allocation Fund has made history as one of the first funds to include bitcoin as part of its portfolio. This is a landmark moment for the cryptocurrency industry, demonstrating that bitcoin has become a viable asset for even conservative investors. The fund’s decision to add bitcoin to their portfolio suggests that the asset has been sufficiently established as a reliable diversifier. It is a positive indication of the increasing acceptance of bitcoin as a legitimate asset, and one that can provide a valuable contribution to a portfolio.
Although we see merit in supporting the technology behind cryptocurrency, we feel it’s best to stick to the investing principles that have made Vanguard a reliable choice for investors.
So when it comes to cryptocurrency, we take the same approach and steer our clients toward time-tested products.
Greg Davis, Vanguard’s Chief Investment Officer
More about Blackrock Global Allocation Fund
The Blackrock Global Allocation Fund aims to maximise the return on your investment through a combination of capital growth and income on the Fund’s assets. The Fund invests globally at least 70% of its total assets in equity securities (e.g. shares) and fixed income (FI) securities in normal market conditions. FI securities include bonds and money market instruments (i.e. debt securities with short term maturities). It may also hold deposits and cash. Subject to the above, the asset classes and the extent to which the Fund is invested in these may vary without limit depending on market conditions.
The Blackrock Global Allocation Fund is designed to provide investors with the potential to maximize their return on investment. It invests at least 70% of its total assets in equity securities and fixed income securities, including bonds and money market instruments, in normal market conditions. Beyond this, the Fund can vary its asset classes and the extent of its investment in those classes depending on market conditions, allowing for a flexible approach to the Fund’s portfolio. This enables the Fund to potentially provide capital growth and income over time.
More about Blackrock
BlackRock is a global leader in investment services and risk management solutions, with a focus on being a fiduciary for our clients. They are dedicated to investing for the long term with our clients, creating inspiring work environments for their employees, and giving back to their local communities. Their mission is to provide the world with a suite of innovative solutions to help create a better financial future. With a global presence, BlackRock is committed to helping our clients and communities succeed.
More about Greg Davis
Greg Davis is an incredibly experienced and well-respected financial leader in the industry. As chief investment officer at the Vanguard, he is responsible for overseeing assets totaling around $7 trillion managed by Vanguard’s Fixed Income, Equity Index, and Quantitative Equity Groups. He has served in various roles over the years, and his extensive experience includes being global head of Vanguard Fixed Income Group, as well as the company’s Asia-Pacific chief investment officer and director of Vanguard Investments Australia. Davis is an exemplary leader and has proven himself to be an exceptional asset to Vanguard.
Greg Davis is an experienced investment manager serving as a member of the Treasury Borrowing Advisory Committee of the U.S. Department of the Treasury. He has more than 20 years of experience in this field, having worked at Merrill Lynch before joining Vanguard in 1999. Davis holds a B.S. in insurance from The Pennsylvania State University, an M.B.A. in finance from The Wharton School of the University of Pennsylvania, and is a CFA® charterholder and a member of the CFA Society of Philadelphia. His extensive experience and expertise make him a valuable member of the Treasury Borrowing Advisory Committee.