BlackRock model portfolio investing to reach US$10 trillion

Model portfolio investing is a booming corner of money management, with BlackRock and many of its competitors benefitting from the popularity of bundling funds into ready-made strategies. — Bloomberg

NEW YORK: BlackRock Inc expects the model portfolio realm of money management to grow to a US$10 trillion (RM46.7 trillion) business over the next five years.

The strategy, through which asset managers and investment platforms compile ready-made packages that are then sold to financial advisers, is set to grow from around US$4.2 trillion (RM20 trillion) currently, according to Salim Ramji, global head of iShares and index investments at the asset manager.