Hi, my name is Russ Koesterich and I am the lead portfolio manager for the Global Allocation (GA) Selects model series. Our objective in designing these models is twofold; we want to help financial advisors optimize their valuable time and we want to assist clients reach their long-term financial goals.
Our approach in achieving these outcomes is unique. Our models blend our team-managed mutual funds across an open architecture platform of ETFs – to give ourselves access to the largest universe of investments possible with the goal of outperforming our benchmarks on a risk-adjusted basis. This distinctive approach provides the GA Selects team with four key structural advantages when it comes to portfolio construction.
The first advantage is enhanced precision. By incorporating our flexible, team-managed active funds as the foundation of the GA model suite, our team is able to invest with an elevated degree of investment accuracy. Our Portfolio Managers and Analysts pick the stocks, the bonds, the currencies, and the hedges that go into our active funds. Our funds often possess holdings - and employ trading strategies - that are simply inaccessible through ETFs.
The second advantage is vertical integration. Because the GA Team doesn’t outsource any of the active strategies used inside our models to other managers, we fully control the securities we own. Our approach ensures that the GA models are all consistently aligned across a variety of dimensions, including geographic, sector, and currency positioning.
The third structural advantage is enhanced risk management. Because we employ only team-managed funds in our models, and because ETFs offer daily holdings transparency, the team has real-time look through into every holding across the entire GA Selects platform. Through BlackRock’s Aladdin risk and trading platform, we are able to see every holding in each model in real-time.
The fourth advantage is enhanced trading flexibility. We are able to trade the underlying holdings inside our team-managed funds daily, which means the GA Selects models are Always On - each day that markets are open – not just the days we are rebalancing our mutual fund and ETF holdings. These synchronized adjustments across our team-managed funds provide us the flexibility to refine the positioning of the GA Selects models as market conditions change.
With access to over 470 portfolio managers and analysts across BlackRock’s Global Fixed Income and Global Allocation franchises, the GA Selects models are managed and led by some of the asset management industry’s most experienced and accomplished investors.
I’m Russ Koesterich and this is Global Allocation Selects.
Carefully consider the BlackRock and iShares Funds within the model portfolios' investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds' prospectuses or, if available, the summary prospectuses which may be obtained by visiting www.iShares.com or www.blackrock.com. Read the prospectus carefully before investing.
The model portfolios are made available to financial professionals by BlackRock Fund Advisors ( BFA ) or BlackRock Investment Management, LLC ( BIM ), which are registered investment advisers, or by BlackRock Investments, LLC ( BRIL), which is the distributor of the BlackRock and iShares funds within the model portfolios. BFA, BIM and BRIL (collectively, BlackRock ) are affiliates.Investing involves risk, including possible loss of principal. Asset allocation and diversification may not protect against market risk, loss of principal or volatility of returns.
The BlackRock model portfolios are provided for illustrative and educational purposes only. The BlackRock model portfolios do not constitute research, are not personalized investment advice or an investment recommendation from BlackRock to any client of a third party financial professional and are intended for use only by a third party financial professional, with other information, as a resource to help build a portfolio or as an input in the development of investment advice for its own clients. The BlackRock model portfolios themselves are not funds.
BlackRock intends to allocate all or a significant percentage of the BlackRock model portfolios to funds for which it and/or its affiliates serve as investment manager and/or are compensated for services provided to the funds ( BlackRock Affiliated Funds ). Clients will indirectly bear fund expenses relating to assets allocated to funds, including BlackRock Affiliated Funds. BlackRock has an incentive to (a) select BlackRock Affiliated Funds and (b) select BlackRock Affiliated Funds with higher fees over BlackRock Affiliated Funds with lower fees.
Fixed income risks include interest-rate and credit risk. Typically, when interest rates rise, there is a corresponding decline in bond values. Credit risk refers to the possibility that the bond issuer will not be able to make principal and interest payments.
International investing involves risks, including risks related to foreign currency, limited liquidity, less government regulation and the possibility of substantial volatility due to adverse political, economic or other developments. These risks often are heightened for investments in emerging/developing markets and in concentrations of single countries. Funds that concentrate investments in specific industries, sectors, markets or asset classes may underperform or be more volatile than other industries, sectors, markets or asset classes and the general securities market.
Actively managed funds do not seek to replicate the performance of a specified index. Actively managed funds may have higher portfolio turnover than index funds.
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