Multi Asset Strategies & Solutions

Global Tactical Asset Allocation (GTAA)

BlackRock’s Global Tactical Asset Allocation (GTAA) team strives to capitalize on situations where markets inaccurately price macro fundamentals. Backed by a robust investment process, our GTAA team helps institutions around the globe meet their investment objectives.

What is Tactical Asset Allocation?

Tactical asset allocation (TAA) is a multi-asset investment approach that encompasses a range of top-down macro investment strategies. The primary objective of tactical asset allocation is to deliver excess returns to a portfolio via asset allocation (at the asset class, country, and/or sector level) rather than through individual security selection. The investment horizon for a TAA manager typically ranges from 3 months to 1 year.

A TAA portfolio manager actively allocates across assets according to their assessment of opportunities and risks in the prevailing market environment. TAA mandates have flexibility on multiple dimensions, enabling managers to continuously and dynamically shift positions across various asset classes and instruments. TAA seeks to deliver attractive risk-adjusted returns while managing risk and potentially controlling drawdowns.

Why Tactical Asset Allocation

Macro tactical asset allocation strategies capitalize on the divergence across global economies, add nimbleness to portfolios and seek to deliver uncorrelated returns to complement existing long-term strategies.

We believe skillful investors can generate returns from TAA by exploiting:

  • Market segmentation and structural impediments
  • Information, processing, and behavioral asymmetries
  • Non-alpha seeking market participants
  • Dispersion between markets and asset classes

Heightened asset class volatility creates opportunities for tactical investors

chart of best and worst performing equity return amongst the MSCI All Country World Index

As of 12/31/2023. Past performance is not indicative of future results. Indices are unmanaged and it is not possible to invest directly in an index. Top and bottom countries representative of the best and worst performing country index within the MSCI All Country World Index (ACWI) for the respective quarter. Measured from Tactical Opportunities strategy inception date 7/1/2016.

Why BlackRock for GTAA?

BlackRock’s Global Tactical Asset Allocation (GTAA) team is a $44 billion1 platform with a 15+ year track record of implementing highly diversified tactical portfolios for both institutional and retail clients.

Our GTAA team offers customized strategies investing across asset classes, countries and sectors within a tactical investment horizon using a data-intensive, top-down macroeconomic investment process.

The intersection of macro data & market pricing

Our innovative approach seeks to exploit the disconnect between market pricing and macroeconomic fundamentals.

Building portfolios

We build portfolios based on three key macro drivers and market pricing, employing discretionary and systematic approaches.

Alpha generation

GTAA seeks to generate alpha through a robust, data-driven macroeconomic research process.

Flexible investment strategy

Flexible investment strategy across geographies, asset classes and potential alpha sources as well as client objectives and implementation considerations.

Our investment frameworks

Bespoke investment strategies for institutions

We offer a range of multi-asset strategies to meet client needs.

  Multi-asset solutions Liquid alternative solutions
 Objective Excess return above benchmark Excess return above Cash
 Active risk 1-4% 6-12%
 Implementation Separately managed accounts
Separately managed accounts
Commingled Vehicles
 Illustrative client need  “We seek a partner to improve risk-adjusted returns versus our SAA, within custom guidelines and constraints”  “We need to be more nimble and generate uncorrelated alpha in a capital efficient strategy”

For illustrative purposes only. Strategies and active risk targets depend upon a variety of factors, including prevailing market conditions and investment availability. There is no guarantee that they will be achieved.

Meet BlackRock’s GTAA team

The GTAA team includes 15 individuals dedicated exclusively on macro investing, located in 6 cities across the globe, allowing the team to tap into BlackRock’s expertise across asset classes and geographies using the latest market developments, macro insights and market pricing.

Phil Green
Managing Director, Head of Global Tactical Asset Allocation team

FAQs about TAA

  • Strategic asset allocation (SAA) focuses on creating a portfolio aligned with an investors long-term goals and risk tolerance. Tactical asset allocation (TAA) seeks to generate excess returns for investors by adjusting portfolio allocations to take advantage of changing market conditions.

  • Tactical asset allocation strategies will adjust the equity, fixed income, or currency positioning within a portfolio to take advantage of perceived opportunities. Investors look for opportunities over a shorter timeframe than strategic asset allocation and benefit from the ability to quickly adapt portfolios.

  • Macro volatility will likely continue for years to come and tactical macro teams, like GTAA, are well positioned to take advantage of these dispersions.

Interested in learning more about tactical asset allocation?

Contact our institutional team to learn more about multi-asset strategies

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