MACPX
BlackRock Sustain Balanced-Inst
A Balanced Approach to Investment
The BlackRock Sustain Balanced-Inst Fund (MACPX) is designed to provide investors with a balanced approach to investment, combining both equity and fixed-income securities. This fund aims to achieve the highest total investment return consistent with prudent risk management. By investing in a mix of equity securities, debt securities, and convertible securities, MACPX offers a diversified portfolio that seeks to balance growth potential with income generation. This makes it an attractive option for investors looking for a moderate risk profile while still aiming for substantial returns. The fund’s strategy is particularly appealing to those who wish to benefit from both the stability of bonds and the growth potential of equities.
At A Glance
Executive Summary
MACPX offers a balanced approach with a 3.23% yield and a 0.54% expense ratio, focusing on equity and debt for prudent risk management.
Diversified exposure to equities and bonds; Competitive yield of 3.23%; Managed by BlackRock, a trusted name in asset management.
Higher expense ratio compared to some peers; Recent underperformance against benchmark; Negative alpha indicating potential inefficiencies.
Performance in a Competitive Landscape
In terms of performance, MACPX has shown a mixed track record. Over the past year, the fund has delivered a return of 23.64%, which, while impressive, falls short of its benchmark, the S&P 500 Total Return Index, which returned 37.62% over the same period. This underperformance can be attributed to the fund’s balanced strategy, which inherently involves a trade-off between risk and return. Despite this, the fund’s five-year annualized return of 9.40% and ten-year return of 8.62% demonstrate its ability to generate consistent returns over the long term. Investors should consider these figures in the context of their own risk tolerance and investment goals.
Portfolio Composition and Sector Allocation
The portfolio composition of MACPX is a key factor in its performance and risk profile. The fund allocates approximately 39.93% to U.S. equities, 35.38% to bonds, and 19.91% to non-U.S. equities, providing a well-rounded exposure to different asset classes. The sector allocation is heavily weighted towards technology (25.12%), followed by financials (15.47%) and healthcare (11.42%). This allocation reflects a strategic focus on sectors with strong growth potential, while also maintaining diversification across other sectors such as industrials and communications. The fund’s bond allocation is primarily in corporate (34.46%) and government (32.09%) securities, which helps to stabilize returns and reduce volatility.
Risk Metrics and Volatility
Analyzing the risk metrics of MACPX reveals some important insights for potential investors. The fund has a beta of 0.60, indicating lower volatility compared to the market. However, the negative alpha of -14.02% suggests that the fund has underperformed relative to its benchmark on a risk-adjusted basis. The Sharpe ratio of -1.71 further highlights the challenges in achieving returns commensurate with the risk taken. Despite these figures, the fund’s standard deviation of 2.36% and downside risk of 1.21% suggest a relatively stable performance, which may appeal to investors seeking a balanced risk-reward profile.
Comparative Analysis with Similar Funds
When compared to similar funds, MACPX stands out for its balanced approach and yield. However, its expense ratio of 0.54% is higher than some peers like Columbia Balanced-Inst2 (CLREX) and Janus Henderson Balanced-I (JBALX), which have lower expense ratios. Despite this, MACPX offers a competitive yield of 3.23%, which is higher than many of its counterparts. The fund’s beta of 0.60 is also lower than the benchmark, indicating less sensitivity to market fluctuations. Investors should weigh these factors against their own investment criteria and consider how MACPX fits into their overall portfolio strategy.
Max Drawdown and Recovery Analysis
The max drawdown of MACPX, recorded at -5.0%, provides insight into the fund’s resilience during market downturns. This drawdown occurred over a relatively short period, with a peak date of July 16, 2024, and a valley date of August 5, 2024. The quick recovery length of zero months indicates the fund’s ability to bounce back swiftly from losses, which is a positive attribute for investors concerned about capital preservation. This resilience, combined with the fund’s diversified asset allocation, makes MACPX a potentially attractive option for those looking to mitigate risk while pursuing growth.
Yield and Income Generation Potential
One of the standout features of MACPX is its yield of 3.23%, which is competitive within the balanced fund category. This yield is a result of the fund’s strategic allocation to both equity and fixed-income securities, allowing it to generate income while also pursuing capital appreciation. The fund’s focus on high-quality bonds and dividend-paying stocks contributes to its income generation potential, making it suitable for investors seeking regular income alongside growth. This aspect of the fund is particularly appealing to retirees or those looking to supplement their income through investments.
Conclusion: Suitability for Investors
In conclusion, the BlackRock Sustain Balanced-Inst Fund (MACPX) offers a compelling option for investors seeking a balanced approach to investing. With its diversified portfolio, competitive yield, and focus on both growth and income, the fund is well-suited for those with a moderate risk tolerance. While the fund has faced challenges in outperforming its benchmark, its long-term performance and resilience during market downturns make it a viable choice for investors looking to balance risk and reward. Potential investors should consider their own financial goals and risk appetite when evaluating MACPX as part of their investment strategy.
Similar Securities
SCGRX: Franklin Multi-Asset Moderate Growth-A | Balanced Aggressive Growth Fund
SCGRX offers a balanced aggressive strategy with a focus on large-cap funds, providing diversified growth potential with a 1.12% expense ratio.
BLADX: BlackRock Managed Income-InvA | Balanced Conservative Income Fund
BLADX offers a 5.30% yield with a conservative balanced approach, featuring a low max drawdown of -2.5% and a strong Sharpe ratio of 0.97.
PACAX: Putnam Dynamic AssetAlloc Conservative-A | Balanced Conservative Fund
PACAX offers a conservative asset allocation with a focus on capital preservation, featuring a 1.03% expense ratio and a 2.36% yield.
RPBAX: TRPrice Balanced-Inv | Balanced Growth and Income Fund
RPBAX offers a balanced approach with 60% in stocks and 40% in bonds, featuring a competitive 0.6% expense ratio and strong tech sector allocation.
FBFWX: American Funds Retirement Inc-Mod F1 | Balanced Income & Growth for Retirees
FBFWX offers a balanced approach with a 0.67% expense ratio, 3.01% yield, and diversified holdings, ideal for retirees seeking income and growth.
Futher Reading
https://finance.yahoo.com/quote/MACPX/”>Yahoo: BlackRock Sustain Balanced-Inst
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