BlackRock expands SMA offering for Aussie investors

BlackRock Australia has launched a range of new active multi-asset model portfolios which promise investors access to “institutional-quality asset allocation”.

BlackRock, which pioneered the introduction of model portfolios in Australia, boasts that its new multi-asset offering combines the benefits of access to BlackRock’s global active investment capabilities with the efficiencies of a managed account structure.

The portfolios, according to BlackRock Australasia head of multi-asset Katie Petering, align with growing adviser demand for alpha-seeking strategies.

The model portfolios are available in three risk profiles – Balanced, Growth, and Aggressive – and will be made available on popular investment platform Hub24.

All-in SMA fees range between 0.74% and 0.85% p.a. across all risk profiles (excluding Hub24’s platform administration fee).

BlackRock said the portfolios aim to blend a diversified selection of its strategies, including both active and index, across various asset classes, including equities, fixed income, multi-asset, property, infrastructure, commodities, and liquid alternatives to deliver differentiated returns.

“The Active Model Portfolios benefit from the firm’s risk management technology, Aladdin, which enables continuous monitoring for alpha and portfolio outcomes.”

Aladdin is BlackRock’s proprietary risk management platform, combining risk analytics with portfolio management, trading, operations, compliance, and accounting tools.

BlackRock Australasia head of wealth Chantal Giles said the Active Multi-Asset Model Portfolios “take a disciplined strategic asset allocation (SAA) approach to model portfolio construction, drawing on the experience of our long-standing Australian multi-asset team”.

“By providing institutional-quality asset allocation that combines BlackRock’s active, index, and liquid alternative strategies, these portfolios provide Australian advisers with diversified exposure to a broad range of asset classes and unique return drivers.

“Ultimately, this supports Australian advisers to deliver multi-asset investment solutions that align with their clients’ specific risk/return investment goals.”