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STRATEGIES

Global Tactical Asset Allocation (GTAA)

Philosophy

The BlackRock Global Tactical Asset Allocation (GTAA) strategy is a data-driven, discretionary macro approach to investing that seeks to provide incremental sources of active return. GTAA tactically allocates across global markets and asset classes while deploying risk to thematic insights.

Led by Phil Green with 30 years of multi-asset portfolio construction experience*,  the GTAA team’s multi-asset investing focus draws on the full capabilities of the BlackRock ecosystem. These capabilities include deep collaboration across investment disciplines, markets, sectors, geographies and assets. The team also elicits support from BlackRock’s thought leadership, proprietary Aladdin tools, robust risk analytics, data expertise, and integrated trading capabilities.

The goals of the GTAA team are to deliver:

  • Investible portfolio insights that capture current market developments
  • Efficient market access to insights by using the full breadth of the BlackRock ecosystem
  • Partnership focused on investors’ objectives and guidelines: benchmark, risk parameters, return target, volatility

Investment process

The GTAA investment process seeks risk-adjusted alpha opportunities that intersect between macro fundamentals and market pricing. While the process utilizes various parts of the BlackRock ecosystem, all activity is the result of asset allocation and security selection decisions made by the GTAA team.

The GTAA team integrates their goals through the following three-step process:

  • Generates rigorous insights through use of data-driven proprietary indicators and in combination with growth, inflation and policy drivers.
  • Identifies attractive opportunities for profit by analyzing what is currently priced in the markets, determines the most appropriate market expression of insights and considers sentiment, crowdedness and possible asymmetrical payoffs.
  • Deploys risk to investment insights rather than asset classes. The team sizes positions according to convictions and the positions are established using trade entry and exit points. During the whole process the team ensures the overall portfolio is appropriately diversified.

Applications and potential benefits

The GTAA platform solutions may appeal to investors who have the following objectives:

  • Volatility management through ranges, caps, and explicit drawdown controls
  • Alpha generation through a custom benchmark approach using a blend of tactical asset allocation and security selection
  • Absolute return generation over time through unconstrained tactical asset allocation, greater use of relative value positioning and security selection
  • Extended knowledge transfer which may include shared dashboards and data, trade and market insights, topical research, frequent calls

*as of June 30th, 2018

Leadership

Philip Green
Managing Director, Head of Global Tactical Asset Allocation