Staying true to the Global Allocation’s mandate in a new world

Insights from the portfolio manager’s office

Mar 22, 2017

Over its 27-year history, the Global Allocation Fund has delivered returns in excess of global stocks and bonds with one-third less volatility than global stocks.* Hear from Dennis Stattman on how the fund has stayed true to its mandate over these many years.

For standard performance, visit: blackrock.com/ga

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    Russ Koesterich: Dennis, one of the things that has always struck me, or at least since I joined the team is the nature of the mandate for the Global Allocation Fund. For the fact that, the mandate specifically looks to create returns that are competitive with equity markets but with less risk. I would assume that, in an environment where advisors are struggling to construct portfolios while not taking too much risk, there is a place for the Global Allocation Fund for those clients. How do you think about that?

     

    Dennis Stattman: Well, first we have been doing just that – delivering competitive returns but with significantly less risk as measured by volatility than the typical equity only fund. And this is part of our basic value added proposition. Now, fortunately over the years, our tools and resources have grown a great deal. And the technology for putting portfolios together, and balancing risk and return evolves year by year. And, so today we have much stronger risk measurement tools, optimization tools, and research tools than we ever had before. And, these are much more sophisticated than a typical investor has available to them.

     

MALOX
Global Allocation Fund seeks a rate of return competitive with that of global stocks at a lower level of volatility over a full market cycle by diversifying broadly across the world.
Dennis Stattman, CFA
Portfolio Manager, Head of the Global Allocation Team
Dennis Stattman, CFA, Managing Director and portfolio manager, is head of the Global Allocation team within BlackRock's Multi-Asset Strategies Group.
Russ Koesterich, CFA
Portfolio Manager, Global Allocation
Russ Koesterich, CFA, JD, is a Managing Director and portfolio manager of BlackRock’s Global Allocation Fund. The team is part of BlackRock's Multi-Asset ...