Download ETF managed portfolio assets expected to

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ETF managed portfolio assets expected to double in size to over $700bn by 2020, finds
BlackRock research
Growth driven by increased ETF adoption by multi-asset strategies
EMPs predicted to account for 19% of MAS assets by 2020, up from 12.5% currently
New York, March 1, 2016 – The ETF managed portfolio (EMP)* segment is expected to experience
rapid growth in the coming years, driven by increased ETF adoption by multi-asset strategies (MAS)
and the growth of the MAS category as a whole, according to research conducted by BlackRock.
BlackRock’s study, ‘The Evolution of Multi-Asset Strategies – Serving Client Needs Through
Exchange Traded Funds’, set out to determine the size of the MAS and EMP markets and how
large a role asset allocation strategies built with ETFs play.
BlackRock surveyed multi-asset managers at over 40 asset management firms – including global
asset managers, boutique asset managers, Investment Officers/Consultants and retail insurers –
representing approximately $19 trillion in AUM, and found that EMPs and MAS make up a much
larger, and faster growing part of the asset management industry than previously believed.
Among the key findings:

EMPs total an estimated $350 billion in assets. This includes $60 billion in separately
managed accounts of retail model portfolios, and $290 billion in variable insurance trusts,
mutual funds, collective trust funds, institutional separate accounts and UCITS.

Currently at $2.8 trillion, MAS are predicted to increase to 10% of the global asset
management industry and represent over 25% of new business in five years.

The EMP market is projected to double to over $700 billion by 2020, as institutional
investors increasingly adopt this strategy through third-party managers and in-house
development for larger pensions and endowments.

EMPs are projected to account for 19% of MAS assets by 2020, growing from the
current level of 12.5%.
BlackRock’s research points to the following drivers of anticipated growth in EMPs and MAS:

Active asset managers’ growing acceptance of ETFs. Asset managers are using ETFs
for a variety of reasons including for liquidity or cash needs, as replacements for futures
and to access broad asset classes.

Client demand for ETFs. Half of those multi-asset managers surveyed said that their
clients are actively requesting that ETFs be used in their portfolios.

Industry disruptions. ETF-based “robo-advisors” are providing customized portfolios to
a growing number of investors, at a lower cost. ETFs are also helping managers address
new rules on the use of futures, meet fiduciary responsibilities around cost and
transparency, and increased capital requirements set by regulators.

Increased use of goal-based strategies. Managers are expanding their MAS investment
options beyond just proprietary products to include goal-based strategies, and developing
their expertise to include ETFs.
“We expect to see dramatic growth in the ETF managed portfolio segment in the coming years”,
said Daniel Gamba, head of BlackRock's iShares Americas Institutional Business. “Asset
allocators in particular have taken to building portfolios using ETFs because they offer cost effective
and easy access to a huge range of markets, and enable them to meet their goals whatever they
might be.”
* BlackRock
defines EMPs as investment strategies with a minimum of 50% allocation to ETFs.
About BlackRock
BlackRock is a global leader in investment management, risk management and advisory services
for institutional and retail clients. At December 31, 2015, BlackRock’s AUM was $4.645 trillion.
BlackRock helps clients around the world meet their goals and overcome challenges with a range
of products that include separate accounts, mutual funds, iShares® (exchange-traded funds), and
other pooled investment vehicles. BlackRock also offers risk management, advisory and enterprise
investment system services to a broad base of institutional investors through BlackRock
Solutions®. As of December 31, 2015, the firm had approximately 13,000 employees in more than
30 countries and a major presence in global markets, including North and South America, Europe,
Asia, Australia and the Middle East and Africa. For additional information, please visit the
Company’s website at www.blackrock.com | Twitter: @blackrock_news | Blog:
www.blackrockblog.com | LinkedIn: www.linkedin.com/company/blackrock
About iShares
iShares is a global leader in exchange-traded funds (ETFs), with more than a decade of expertise
and commitment to individual and institutional investors of all sizes. With over 700 funds globally
across multiple asset classes and strategies and more than $1 trillion in assets under management
as of December 31, 2015, iShares helps clients around the world build the core of their portfolios,
meet specific investment goals and implement market views. iShares funds are powered by the
expert portfolio and risk management of BlackRock, trusted to manage more money than any other
investment firm.1
Carefully consider the Funds' investment objectives, risk factors, and charges and expenses before
investing. This and other information can be found in the Funds' prospectuses or, if available, the
summary prospectuses which may be obtained by visiting the iShares ETF and BlackRock Fund
prospectus pages. Read the prospectus carefully before investing.
1
Based on $4.645 trillion in AUM as of 12/31/15.
Investing involves risk, including possible loss of principal
Transactions in shares of ETFs will result in brokerage commissions. There can be no assurance that an active
trading market for shares of an ETF will develop or be maintained.
The strategies discussed are strictly for illustrative and educational purposes and are not a recommendation,
offer or solicitation to buy or sell any securities or to adopt any investment strategy. There is no guarantee
that any strategies discussed will be effective. This material represents an assessment of the market
environment as of the date indicated; is subject to change; and is not intended to be a forecast of future events
or a guarantee of future results. This information should not be relied upon by the reader as research or
investment advice regarding the funds or any issuer or security in particular.
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