10:14 AM EDT, 09/06/2024 (MT Newswires) -- (Updates with BlackRock ( BLK ) note in the second paragraph.)

BlackRock ( BLK ) is reorienting its investment strategy more toward value stocks and fixed-income as markets enter a new chapter with expected Federal Reserve interest rate cuts and the looming US presidential election.

"We are seeking to proactively manage seasonal and potential election-related volatility by reducing risk exposure," said Michael Gates, lead portfolio manager for BlackRock's ( BLK ) Target Allocation ETF model portfolio suite, in a note viewed by MT Newswires. "We are reducing our US and growth overweight, while increasing exposure to international and value stocks. We are adjusting our fixed income positioning after a sharp fall in interest rates and in preparation of the Fed easing."

Consequently, billions of dollars moved between corresponding BlackRock ( BLK ) exchange-traded funds on Thursday as the company tweaked its model portfolios, Bloomberg reported Friday, citing a person familiar with the matter. Though the moves are seen as a de-risking strategy, the backdrop is still bullish overall, according to the report.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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