Europe-An Innovation History and A Future of Sustainability - BlackRock

6/26/22, 3:32 PM Europe–an innovation history and a future of sustainability |BlackRock
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Europe – a history of
innovation and a future
of sustainability
https://www.blackrock.com/ch/professionals/en/themes/why-europe 1/16
Europe’s vibrant history and record of innovation has led to it being the world’s third-largest

economy.1 The region’s expansive population and long-established academic and political
institutions have made it home to a multitude of exciting investment opportunities.
1Source: The Balance, May 2021
Why Europe
Key investment themes
Sustainable investing
Our impact in Europe
Your team
With ageing populations, expectations for higher

correlations between asset classes, and the world’s total
2
negative-yielding government debt reaching €15.25tr
there has never been a more urgent time for investors to
have access to financial markets, and opportunities
abound in Europe.
2
Source: Bloomberg, December 2020.
While the region has suffered some setbacks, particularly in the face of Covid-19, the
eurozone alone represents 11% of the world’s economy3, which makes its markets an
important destination for global investors. Based on 2019 GDP, Germany is the world’s fourth-
largest economy, the UK is ranked sixth globally, and France comes in at number seven,
making these markets extremely important for global investors4. From its fast-growing
emerging countries to traditional powerhouse economies like Germany, Europe offers a
unique depth and breadth of options for investors. Many of the world’s leading entrepreneurial
mid cap businesses are listed in Europe – providing compelling investment opportunities. In
fact, at BlackRock we invest over €1.6tr on behalf of our clients in Europe, including investors
from the United States, Latin America and Asia Pacific.5 And while the region has contended
with a difficult year due to Covid-19, we believe these challenges are temporary.

3
https://tradingeconomics.com/euro-area/gdp
4
https://www.investopedia.com/insights/worlds-top-economies/
5 th
Source: BlackRock, date September 8 2021
A commitment to sustainability
Another attraction is that European governments, societies, and businesses are deeply
committed to sustainable development, sustainable investing, and achieving environmental
targets. Innovations and new technology that will usher us into a more sustainable future ̶
such as clean energy and advancements in artificial intelligence (AI) ̶ are already squarely in
focus.
European governments and regulatory bodies are prioritising green initiatives and
responsible investing. The introduction of the Sustainable Finance Disclosure Regulation
(SFDR) should help to ensure sustainable investing practices, and the European
6
Commission’s European Green Deal aims to make the EU climate-neutral by 2050 , providing
a hospitable environment for ESG focused assets and funds.
6
Source: European Commission, A European Green Deal, May 2021
Opportunities in private equity

Europe-based private equity has been on an upward trajectory since 2000, with a notable
jump in the last four years—and it’s estimated that there could be the potential for more than
€500 billion in unrealised value available7. There are currently more than 200 Europe-focused
private capital funds and nearly 3,000 institutional investors active in the alternatives market.
7
Source: Prequin, December 2019
Growth of indexed assets

We’ve also seen a 19% growth in indexed asset sover the last 5 years, with $2.6tn now
managed by indexed products8. A trend that has picked up at the beginning of this year with
Europe catching up with the US.


8
Source: BlackRock Global Business Intelligence and Broadridge, as at 31 Dec 2020. Includes
ETPs and Index Pooled Funds only.
Global investors turn to Europe
Cumulative flows into European equity ETPs split by listing region, January 2021-June 2021
Source: BlackRock and Markit, as at 22 June 2021. Past flows into global ETPs are not a
guide to current or future flows and should not be the sole factor of consideration when
selecting a product.
Figures are in US dollars, unless stated otherwise.
Key investment themes

Across Europe we see five key themes that will impact and drive the future state of investors’
portfolios. These include:
Positioning for a cyclical rotation:

We believe the economic restart could favour the unloved cyclical sectors that account for a
large weighting within European equities.
The search for income

Credit – particularly high-yield – could offer attractive income potential. A quality approach
to equity income focusing on dividend growth could help avoid yield traps.
Protecting the downside

Short duration and unconstrained fixed-income funds may offer an attractive way to protect
portfolios and benefit from volatility in the case of a move higher in yields.
Building resilience
We favour an approach that goes beyond traditional diversifiers, and offers exposure to real
economy trends, quality, secular growth themes, and private markets.
Future-proofing your investments

The shift to sustainable is a trend which has been supercharged in Europe and shows no
signs of stopping.
 Looking to invest in Europe?
Sustainable investing in Europe

Our investment conviction is that sustainability and climate-integrated portfolios can provide
better risk-adjusted returns to investors. And with the impact of sustainability on investment
returns increasing, we believe that sustainable investing is the strongest foundation for client
portfolios going forward.
Europe is a global standard bearer in the long-term structural shift towards sustainability, due
to economic and social forces as well as a focus from policymakers. The European Green Deal
puts sustainability at the heart of the Covid fiscal recovery package, and consumer demand
remains buoyant, with Europe recently becoming the number-one region for electric vehicle
passenger sales.
The introduction of the Sustainable Finance Disclosure Regulation (SFDR) is a key catalyst for
sustainable investing in Europe. We see the standardisation of definitions and concepts as
crucial for advancing sustainable investing, with investors seeking increased transparency
and data on sustainable risks and opportunities. As a fiduciary investor, we advocate for sound
corporate governance and sustainable business practices that result in long-term value
creation for our clients. Our investment stewardship team is lead out of Europe, by Sandra
Boss, our Global Head of Investment Stewardship. This team’s role is to engage with company
management on ESG concerns that threaten corporate value.
Our approach to sustainable investing 
Investment Stewardship
We are committed to providing transparency into our investment stewardship activities.
 Discover more
SFDR
Delivering on sustainability as our standard in Europe.
 Discover more
Our impact in Europe
We are helping to build savings that will

serve a lifetime:
People deserve financial security across their lifetime. As a long-term investment manager, we
help millions of Europeans achieve that.
25

years we have been managing money on behalf of Swiss

institutional and wealth clients
We make investing easier and more

affordable:
We know the benefits of investing have been out of reach for too many people. That’s why we
are making investing easier and more affordable.
$
200
bn plus of assets entrusted to us to manage on behalf of
Swiss clients
Source 

Source: FP&A August 21
We invest for better, more resilient

futures:
We invest our clients’ money in companies of all types and sizes in Europe, helping those
companies grow and create jobs, which in turn enables the European economy and society to
prosper.
$
1.25
bn plus assets raised from global investors in Swiss
sustainable products
Source 
Source: BlackRock Sustainable Investing - Global Product List as of June 30th 21. The amount is the AuM of our two Swiss
ESG funds
We advance sustainable investing: 
We advance sustainable investing because our conviction is it delivers better outcomes for
investors. Through using 5% of BlackRock’s net revenues from the ICS LEAF series, we offset
120,000 tons of CO2 across Europe helping reduce emissions and fund environmental
9
projects. That’s the equivalent of planting nearly 160,000 acres of forest.
9
Source: BlackRock, December 2020
384
cross listed ETF's in Switzerland offering easy access to
global and niche markets
Your team on the ground
Source 
10
BlackRock, June 2021
10
We are deeply embedded in Europe, with more than 3,000 employees in 20 offices in cities
from Athens to Zurich. This gives us local expertise and allows us a more detailed perspective
on the areas in which we operate and invest. We share our knowledge, experience, and insights
with our clients through our experts on the ground, as shown on the map. These include
investment teams, client solutions, technology and thought leadership.
Investment experts
Team Description
Team Description 
Our skilled portfolio managers

average 20 years in the
industry. Our European Equity
team is led by Nigel Bolton,
BlackRock’s Global Co-CIO for
fundamental equities, and
Alpha investment
Becci Mckinley Rowe. Our
European Fixed Income team is
headed by Michael
Krautzberger, Head of
Fundamental Fixed Income in
EMEA.
Our local experts seek to find

opportunities in hedge funds,
Alternatives
private debt, infrastructure and
real estate funds.
Our ETF and index investment

professionals are dedicated to
providing portfolio building
blocks for investors large and
ETF and index investment
small. iShares ETFs make it
simple for everyone to invest
with efficiency and
transparency at a fair price.
Team dedicated to providing

our firm and our clients with a
clear picture of the relationship
between sustainability issues,
BlackRock Sustainable Investing risk and long-term financial
performance. They act as a
central authority on
sustainable investing across
the investment spectrum.
Client solutions 
Team Description
A team of highly qualified

investment consultants who
empower clients to gain new
perspectives on their portfolios.
BlackRock Portfolio Analysis and Solutions (BPAS)
The team provides clients with
the tools and support they
need to get closer to their
overall portfolio objectives.
This team offers clients easy

Client Portfolios Solutions / Multi-Asset Solutions (CPS / access to fully customisable
MASS) index and alpha investment
capabilities.
This team provides direct

access to our best thinking on
Retirement team retirement, with insights from
our investment and financial-
planning professionals.
This team is responsible for

sourcing private investment
Capital Markets team
opportunities, IPOs, and
private placements.
Team Description

This group partners with

central banks, sovereign wealth
funds, finance ministries,
future generation funds and
Official Institutions Group (OIG) multi-lateral organizations. It
serves as a central point of
contact for investment, risk
management and advisory
services.
Technology
Team Description
The world’s biggest investment

platform of its kind. Our local
experts can help you discover
how to use this technology to
build better portfolios and lead
Aladdin large scale implementation
projects.
Risk: While proprietary

technology platforms may help
manage risk, risk cannot be
eliminated.
Thought leadership
Team Description 
This team offers investors

insights on long-term asset
BlackRock Investment Institute (BII) allocation, the global and local
economy, markets and
geopolitics.
Continue exploring
 All European products
 Investing in Europe
 European Equities Barometer
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6/26/22, 3:32 PM Europe–an innovation history and a future of sustainability |BlackRock

Our Professional Switzerland Sign

About us Products Investment themes Insights Solutions 

1Source: The Balance, May 2021

With ageing populations, expectations for higher

Opportunities in private equity

Growth of indexed assets

Europe catching up with the US.

Global investors turn to Europe

Figures are in US dollars, unless stated otherwise.

Key investment themes

Positioning for a cyclical rotation:

The search for income

Protecting the downside

Future-proofing your investments

 Looking to invest in Europe?

Sustainable investing in Europe

Our approach to sustainable investing 

Our impact in Europe

We are helping to build savings that will

years we have been managing money on behalf of Swiss

We make investing easier and more

We invest for better, more resilient

We advance sustainable investing: 

Your team on the ground

Our skilled portfolio managers

Our local experts seek to find

Our ETF and index investment

Team dedicated to providing

A team of highly qualified

This team offers clients easy

This team provides direct

This team is responsible for

This group partners with

The world’s biggest investment

Risk: While proprietary

This team offers investors

 European Equities Barometer

ABOUT US FUND TYPE INVEST WITH INSIGHTS SERVICES

Corporate Index funds Alternative glance and Solutions

sustainability investing Investment Model Portfolios

Investment ASSET CLASS Sustainable actions Index Analysis

Real estate funds

© 2022 BlackRock, Inc. All rights reserved.

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