Key Takeaways

December 20, 2019

75% of CIOs consider liquidity an ongoing priority, according to Greenwich Research.
Liquidity is a priority due to funding shortfalls, ongoing obligations, capital calls, asset manager review, and rebalancing.
At the same time, allocations to alternative investments are on the rise – but “traditional” alts do not provide liquidity. In addition, commitments to alts are not immediately invested, resulting in cash drag from dry powder waiting for capital calls
ETFs are widely used by institutional investors, and can play a major and innovative role in answering the liquidity challenge.
Among the ETF-based solutions is the off-the-shelf Liquid Policy Portfolio (LPP) strategy, through which investors can potentially achieve operational efficiency, cost efficiency, and investment efficiency.
Customized strategies allow for precise liquidity solutions using ETFs.
Liquid public proxies can help investors mimic “traditional” alternative investments, but with the potential for liquidity, ease of use, and low costs – all through using ETFs.

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There can be no assurance that the investment objectives of any strategy referred to herein will be achieved. An investment in any strategy referred to herein involves a high degree of risk, including the risk that the entire amount invested may be lost. Strategies are not guaranteed by BlackRock or its affiliates.

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