Multi-Asset Portfolios Strategies (MAPS)

Over the past few years we have seen increased interest from institutional and individual clients for multi-asset class solutions to meet their investment needs. Clients and their consultants are looking at blends of traditional asset classes and alternative investments as they design investment strategies with customized return targets and risk levels. These assignments often begin with a consultative dialogue around the client's objectives. Some of the solutions are relatively straightforward, while others are quite sophisticated and complex; the common thread is the use of a broad range of equity, fixed income, alternative and derivative investment strategies.

Given the growing importance of these types of strategies, BlackRock established a dedicated Multi-Asset Portfolio Strategies (MAPS) team within our Portfolio Management Group. The team—which consists of over 40 portfolio managers, quantitative analysts, economists and actuaries—is responsible for developing, assembling and managing investment solutions involving multiple strategies and asset classes.

MAPS consolidates the expertise of these professionals onto a single platform with an array of capabilities. It serves as the centralized function within BlackRock responsible for asset allocation as well as for the fundamental and quantitative research at multiple levels (e.g., country, currency, economic and sector) needed to formulate asset allocation views. The MAPS team also provides strategic investment advice and analytical expertise around risk budgeting, benchmarking, regulatory issues, capital efficiency and fiduciary advice. For example, the team works closely with clients and their consultants to develop liability-driven investment solutions working within tailored risk budgets and employing a range of asset classes to meet their objectives.

Financial engineering is an important component of the MAPS skill set as it pertains to the separation of alpha and beta, risk budgeting and capital efficiency. Strategies are constructed using cash instruments and derivatives, with a focus on providing non-correlated returns and managing left-tail events.