Blackrock, Inc. · NYSE:BLK
Blackrock — FactSet FY18 Getting Smarter with Data Seminar (April 2018)
31 slides from Blackrock's conference presentation, April 2018
Slide 1: Megatrends – iShares Thematic ETFs
Megatrends – iShares Thematic ETFs Steven Lu, CFA, BlackRock iShares APAC Distribution April 2018 FOR PROFESSIONAL AND INSTITUTIONAL INVESTORS USE ONLY EII0418A-477607-1503167 NOT FOR PUBLIC DISTRIBUTION (PLEASE READ IMPORTANT DISCLOSURES)
Slide 2: What is the greatest insecurity of our age?
What is the greatest insecurity of our age? Saving ENOUGH for retirement FOR PROFESSIONAL AND INSTITUTIONAL INVESTORS USE ONLY EII0418A-477607-1503167 NOT FOR PUBLIC DISTRIBUTION (PLEASE READ IMPORTANT DISCLOSURES) 2
Slide 3: What are Thematic Investments?
What are Thematic Investments? EII0418A-477607-1503167
Slide 4: Five major megatrends shaping the globe
Five major megatrends shaping the globe Shifting Climate change, Demographics Technological Rapid economic resource and social breakthrough urbanisation power scarcity change The growing strength An expanding global Increasing age and size A technological According to the UN, of emerging population
Slide 5: Megatrends and how you can benefit
Megatrends and how you can benefit Investment concept Shifting Thematic economic power indices iShares ETFs Climate change, resource Your scarcity portfolio Demographics and social change Technological breakthrough Rapid urbanisation Source: BlackRock, as of 31st December 2017. For illustrative purp
Slide 6: iShares Thematic ETFs
iShares Thematic ETFs Calendar year Performance, 2013-2017 Overview 50.0% 40.0% 30.0% 20.0% AGED 10.0% HEAL TER: 0.40% TER: 0.40% 0.0% -10.0% -20.0% 2013 2014 2015 2016 2017 iSTOXX FactSet Breakthrough Healthcare USD Net Return RBOT DGTL iSTOXX FactSet Ageing Population USD Net Return iSTOXX FactSet
Slide 7: iStoxx Factset Thematic Indices
iStoxx Factset Thematic Indices Methodology Overview and Key Features EII0418A-477607-1503167
Slide 8: Index methodology explained
Index methodology explained Move beyond traditional sector classifications Cielo SA: stock in the iStoxx Factset Digitalisation index Despite being in the Financials GICS sector, Cielo SA generates over 50% of its revenue from Electronic Payment Processing putting it squarely in the Digitalisation
Slide 9: iStoxx Factset Thematic Indices: Construction
iStoxx Factset Thematic Indices Construction 1 Start with a universe of 8,000 stocks The Stoxx Global Total Market Index Includes developed and emerging markets stocks Includes large, mid and small cap stocks 2 Screen based on revenues Companies must have at least 50% of their revenue genera
Slide 10: iShares Thematic ETFs
iShares Thematic ETFs RBOT, DGTL, AGED, HEAL EII0418A-477607-1503167
Slide 11: Automation and Robotics: Rise of the machines
Automation and Robotics Rise of the machines Robots and A.I. have replaced many less-skilled jobs But manufacturing wages in EM are increasing China Average Yearly Wages In Manufacturing 70,000 59,470 60,000 55,324 51,369 50,000 46,431 41,650 CNY/Year 40,000 36,665 30,700 30,000 26,599 24,192 20,884
Slide 12: Automation and Robotics sub-themes
Automation and Robotics Rise of the machines By 2025, the share of tasks performed by robots could rise from a global average of around 10 percent to about 25 percent across all manufacturing industries.* 3 sub themes within robotics Sub-theme security breakdown Industrial • Automotive industry, m
Slide 13: iShares Automation & Robotics UCITS ETF
iShares Automation & Robotics UCITS ETF RBOT Why automation & robotics today? R Invest in disruptive change – Robots have the power to disrupt existing industries, deliver cost savings and efficiencies as well as drive corporate profits for the next few decades R Harness technological growth – Captu
Slide 14: Digitalisation
Digitalisation EII0418A-477607-1503167
Slide 15: Digitalisation: Disruptive technology is changing the world
Digitalisation Disruptive technology is changing the world Mobile internet traffic is rapidly increasing Online spending is also on the up Global mobile data traffic in exabytes (1bn e-Commerce Sales in bn $ gigabyte) per month 5,000 4,479 60 4,500 49 3,879 50 4,000 3,305 3,500 40 35 3,000 2,774 2,5
Slide 16: iShares Digitalisation UCITS ETF
iShares Digitalisation UCITS ETF Disruptive technology is changing the world The digital economy is displacing established business models, shaking up industries and creating entirely new industries. 3 sub themes within digitalisation Sub-theme security breakdown Communication Communication, • Soc
Slide 17: iShares Digitalisation UCITS ETF: Why digitalisation today?
iShares Digitalisation UCITS ETF Disruptive technology is changing the world DGTL Why digitalisation today? R Invest in the digital economy – Invest in sectors such as financial technology, cybersecurity, and cloud computing that are transforming global markets today and have the potential to shape
Slide 18: Healthcare innovation
Healthcare innovation EII0418A-477607-1503167
Slide 19: Breakthrough healthcare: HEAL the world
Breakthrough healthcare HEAL the world Spending on healthcare is set to balloon Medical devices market is set to expand rapidly Forecast share of global GDP spent on healthcare Medical Devices Market: Forecast for growth 25.0% 500 20.0% 435.8 450 412.8 20.0% 386.1 400 360.8 339.5 350 15.0% 300 USD B
Slide 20: Healthcare Innovation sub-themes
Healthcare Innovation HEAL the world If current trends persist to 2050, most developed countries will spend more than a fifth of GDP on health care. The U.S. and Switzerland are projected to spend half of their GDP on healthcare within the next 50 years 3 sub themes within healthcare innovation: Sub
Slide 21: iShares Healthcare Innovation UCITS ETF
iShares Healthcare Innovation UCITS ETF HEAL the world HEAL Why healthcare innovation today? R Shifting demographics – As health services around the world face rising demand from an ageing population, more efficient and effective ways of delivering treatment and care are likely to be needed R Divers
Slide 22: Ageing Population
Ageing Population EII0418A-477607-1503167
Slide 23: Ageing population: The longevity revolution
Ageing population The longevity revolution The proportion of elderly people is rapidly increasing Ageing is not just a first world problem Number of countries with >30% population aged over 60, Top ten countries with population over 80 in 2015 vs. 2050 2015-2050 140,000 60 55 120,000 47 Population('
Slide 24: Ageing population sub-themes
Ageing population The longevity revolution The global population is undergoing a paradigm shift as people are living longer and reproducing less. The current skew towards the young will be largely eroded over the next 30 years.* 4 sub themes within an ageing population: Sub-theme security breakdown
Slide 25: iShares Ageing Population UCITS ETF
iShares Ageing Population UCITS ETF AGED Why ageing population today? R Shifting demographics – As people are living longer, society will be forced to make rapid investments into medical devices and technology to account for a significantly older population. R Diversification – Directly investing in
Slide 26: How to Implement in client portfolios
How to Implement in client portfolios EII0418A-477607-1503167
Slide 27: Invest across thematic strategies with limited overlap
Invest across thematic strategies with limited overlap Thematic fund implementation: Target a specific theme with a single thematic strategy Invest across thematics to further diversify and enhance a global portfolio Overlap between thematic indexes 24 1 Ageing Breakthrough Population Healthcare
Slide 28: Thematic correlations to broad equities
Thematic correlations to broad equities Diversification benefits within an equity portfolio The funds can be utilized within the Equities allocation of a portfolio when seeking diversification benefits, with correlations against most major Equity indices under 90%. Historically, HEAL has exhibit
Slide 29: Case study 1: adding thematic ETFs to a simulated portfolio
Case study 1: adding thematic ETFs to a simulated portfolio Fitting each of the 4 ETFs individually into the Equity allocation of the Starting Portfolio Starting Portfolio* 10% 10% Consider allocating 45% Thematic ETFs within the Equity allocation 35% Equity Fixed Income Alternatives Cash Equity: FT
Slide 30: Enhancement of the portfolio's risk-return characteristics
Case study 1: adding thematic ETFs to a simulated portfolio Enhancement of the portfolio’s risk-return characteristics Enhanced risk-return characteristics: All portfolio solutions demonstrate an improvement in risk-return characteristics compared to the Starting Portfolio. Whilst all portfolio
Slide 31: Disclaimer
Disclaimer This material is prepared by BlackRock for informational or educational purposes only. This is prepared For investors in Hong Kong: Issued by BlackRock Asset Management North Asia Limited. This material for professional and institutional investors only and does not constitute an offer or
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