How do Retiready Solutions 2 to 5 aim to limit the impact of stock market falls?
Updated 18 August 2016
Because our Retiready Solutions move into safer investments when volatility goes up, we believe that this may help limit the losses that funds without this kind of risk management would suffer.
This is because historically stock markets have tended to fall in value when market volatility (risk) goes up, so removing a big portion (20%*) of the funds' exposure to riskier investments should limit the impact of those falls.
But, bear in mind, if risk goes up and so do stock markets (which can happen) then our funds won't perform as well as funds that don't have the same risk management safeguard in place. See our Retiready Solutions 2 to 5 overview for more information.
* BlackRock may choose to use its discretion to de-risk or re-risk by amounts other than those stated.
Please note, the above does not apply to Retiready Stability as it doesn’t have the added risk management safeguard. Find out how Retiready Stability manages risk.