Solutions Portfolio Management

The success of any strategy, no matter how thoughtful its design, depends on effective and timely implementation. BMACS excels at completing and implementing each client's customized solution, drawing on a variety of investment strategies and coordinating resources from across the BlackRock organization. Because the challenges that institutions face are dynamic, BMACS can engage and assist clients at any point in the continuum, whether it is an entirely novel investment approach or simply honing an existing strategy. The solutions we implement and manage are diverse and include:

• Custom mandates: For investors with already well-defined goals and objectives, BMACS can weave together a variety of active and passive solutions to create the right investment mix to match virtually any policy portfolio.
• LDI and Journey Management: BMACS helps plan sponsors develop and manage strategies that match liabilities, share advances in asset-liability monitoring, and implement systematic rebalancing approaches to increase the probability of achieving investment goals.
• Fiduciary management: We offer a comprehensive and integrated approach to fiduciary management, including asset and liability analysis, strategic asset allocation, benchmark design, third-party manager research and selection, and risk management at every step of the investing process. Every fiduciary client is staffed with a dedicated team to service their needs in a holistic manner.

Featured Literature

Efficient Portfolio Rebalancing in Normal and Stressed Markets, Investment Insights, September 2010

Portfolio rebalancing involves a tradeoff between risk and cost. Identify the most effective approach for rebalancing in normal markets, and learn about an alternative called tracking error rebalancing, which can help reduce risk inexpensively, even in stressed markets.

Is there a way to make the search for alpha more effective and increase your odds of success? Introducing a framework for estimating active returns, in view of two primary conditions for consistent alpha: the fund manager's skill at outperforming his benchmark and the investor's ability to select skillful managers.