STRATEGIES

Global Allocation

Philosophy

The Global Allocation Strategy is a flexible, diversified multi-asset portfolio that seeks to deliver a rate of return competitive with that of global equities at a lower level of volatility over a full market cycle.

Incepted in February 1989, partially in response to the October 1987 stock market crash, the Strategy is one of the original global multi-asset portfolios. The Global Allocation team combines a fundamental, bottom-up process with top-down asset allocation in order to look for undervalued investment opportunities around the globe while seeking to mitigate macro risks. The Strategy is well-diversified and has the flexibility to invest across asset classes, capital structures, regions, sectors, and currencies in both traditional and non-traditional assets. The team is one of the most experienced multi-asset teams in the industry*, with more than 50 individuals dedicated to the management and administration of the Strategy.

The Global Allocation team seeks to deliver:

  • Long-term growth with less volatility than global equities over a full market cycle
  • A highly diversified global portfolio that combines traditional and non-traditional asset classes and investments across the capital structure
  • Upside participation and downside mitigation throughout market and economic cycles
Unconstrained search opportunity

As of December 31, 2017. Source: BlackRock, Morningstar.  * The strategy has one of the longest “Manager Tenure” as defined by Morningstar among funds in Morningstar’s World Allocation category.

Drawing on the Breadth and Depth of BlackRock’s Resources:

  • Multi-Asset Strategies
  • Risk & Quantitative Analysis
  • BlackRock Investment Institute
  • Daily Global Meeting
  • Aladdin® Platform
  • Technology
  • Trading

Applications and Potential Benefits:

The Global Allocation Strategy may be implemented within a diversified portfolio in the following ways:

  • As a global multi-asset or GTAA sleeve in a portfolio: Seeks to provide a broader investment universe than a traditional balanced portfolio and introduces a tactical overlay that can adapt as markets change.
  • As a component of the equity sleeve in a portfolio: With a high degree of correlation to equity markets, the Strategy may be used as an equity replacement with a lower volatility bias.
  • As a component of the alternatives sleeve in a portfolio: Flexible investment strategy that has daily liquidity, attractive long-term risk-adjusted returns, and the potential for downside mitigation.

Leadership

Dan Chamby, CFA
Managing Director, Portfolio Manager
Russ Koesterich, CFA, JD
Managing Director, Portfolio Manager
David Clayton, CFA, JD
Managing Director, Portfolio Manager
Kent Hogshire, CFA
Managing Director, Portfolio Manager