How do Retiready Solutions 2 to 5 aim to limit the impact of stock market falls?
Updated 26 September 2019
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 help 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 be aware that there's no guarantee that the funds will meet their objectives. The value of investments can go down as well as up and you may get back less than you invested.
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.