BlackRock, a leading asset manager, provides investment, advisory, and risk management solutions worldwide. With approximately USD 10 trillion in global assets under management (as of 31 December 2023), it stands as one of the world’s foremost providers in its field. BlackRock has established a significant presence in Singapore for over 20 years, housing more than 700 professionals in its local office. It is a fiduciary that aims to make investing easier and help people to build savings that serve them throughout their lives.

BlackRock is a pioneer in the model space with one of the most comprehensive offerings in the industry with strong performance. It has more than USD 112 billion in model asset globally and serves investors from over 35 countries (as of 30 September 2023). This collaboration introduces customized model portfolios to address a wide range of investor needs and boost GROW’s wealth management offerings in Singapore. The new offering leverages BlackRock’s foundational elements, alongside advisory services for strategic and tactical asset allocation, to enable advisors to meet client investment objectives at different stages.

In partnership with BlackRock, GROW with Singlife offers a range of three exclusive model portfolios which offer a full suite of risk profiles to align with different investment objectives (20/80 to 80/20). GROW Model Portfolios have three key differentiators:

1. All-in-one portfolio solutions: global multi-asset portfolios offering diversified exposures across stocks, bonds and alternatives.

2. Best of BlackRock active: leveraging BlackRock's active investment platform spanning different asset classes and investment styles including fundamental and systematic approaches. The models are run, managed and reported on Aladdin, BlackRock’s proprietary technology platform that offers active risk management.

3. Industry leader in models: BlackRock is a pioneer in the models' space with a dedicated team of 20+ investment professionals globally focusing 100% of their time in model portfolios and delivering for clients via expertise in portfolio construction, asset allocation and investment insights.

The model portfolios consist of 10-15 actively managed BlackRock mutual funds and aim to rebalance 4-6 times per year. The actively managed mutual funds offer retrocessions. 

Globally, advisors turn to Model Portfolios to accelerate their business growth and to allow them to spend more time with a greater number of clients. The GROW Model Portfolios aim to help you to spend more time with clients and build deeper connections: 

1. One-Stop-Shop: the models consist of a core set of BlackRock’s Active flagship funds enabling you to have consistent conversations across your clients irrespective of their chosen risk profile.

2. Trade Ideas: Whenever a new trade or position change is advised by BlackRock you will be equipped with a rationale and a suggestion to discuss and advise your clients on.

3. Markets Commentary: On a monthly and quarterly basis BlackRock will provide a market commentary that you can leverage with your clients and to demonstrate how it links to the proposed allocations within their portfolio.

4. Regular Touchpoints: the Target Allocation Active Models will rebalance 4-6 times per year, the sequence of rebalances will create regular touchpoints with your clients, allowing you to discuss their other needs and to cross-sell other products that serve them. 

From an investment perspective, the Target Allocation Active Models are:

• Active – the models are designed to adapt to changing market conditions through underlying active management and top-down asset allocation.

• Diversified – they are globally diversified and aim to give investors exposure across bonds, equities, and alternatives.

• Risk-profiled – across 3 risk profiles (80/20, 60/40, 20/80).

• Industry leading - BlackRock is a pioneer in the models space and has a dedicated team of 20+ investment professionals globally, the Target Allocation Active Models leverage BlackRock’s expertise and experience.

• Leading risk management - thanks to the use of BlackRock only products, the Target Allocation Active Models have 100% transparency of underlying holdings and leverage BlackRock’s industry-leading risk management technology. This helps to ensure your clients are not exposed to unnecessary risk and are not holding exposures which express contradicting views. 

GROW Model Portfolios is an exciting option for investors who are looking to have a globally diversified portfolio that remains dynamic in the face of market conditions and offers access to bonds, equities and alternatives. Model portfolios can be used in a variety of ways depending on clients' preferences and objectives.

Below are some of the use cases:

1. Standalone: model portfolios provide all-in-one investment solutions that are diversified across stocks, bonds and alternatives. It allows investors to be more active in asset allocation and security selection in a scalable, repeatable fashion without sitting on the sidelines or investing with emotion when market gets volatile.

2. Core-Satellite: model portfolios can be used as core holdings that blend with investors' high conviction ideas. This empowers investors to manage risk and their fundamental assets, and therefore concentrating their efforts on executing the investments they like.

3. Blending: Multiple risk levels of the model portfolios can be blended to achieve a desired asset allocation (e.g. blend 60/40 and 80/20 for a 70/30 allocation)

4. Mix & Match: model portfolios can be paired with other investments like ILPs or single asset class ETFs and mutual funds to create diversified pool of investments

GROW is excited to offer these exclusive models to the advisor network. BlackRock’s proprietary risk management technology – Aladdin – is a leading platform which integrates risk, investment and operational processes to provide clarity, understand & manage risk, operate more efficiently and make informed investment decisions. Selecting a model which draws on the BlackRock investment platform ensures your clients can benefit from the capabilities of Aladdin, whilst getting access to the flagship Active strategies and leading portfolio managers of the world’s largest asset manager.

The models are rebalanced by BlackRock’s Model Portfolio Solution (MPS) that manages more than USD 112 billion in model assets globally and serves investors from over 35 countries (as of 30 September 2023). The MPS team is part of BlackRock's broader Multi-Asset Strategies & Solutions platform, a group that brings together 500+ professional and responsible for over USD 1.1 trillion assets under management (as of 30 December 2023). The MPS team has dedicated portfolio management footprint and comprehensive local sales support in the APAC region, enabling the team to offer supports such as training workshops and educational sessions.

The models were launched on February 14, 2024. It is worth noting that BlackRock has maintained robust track records for models managed in the region since 2014. For the Target Allocation Active Models specifically, BlackRock has provided key performance analysis and back-testing in the Advisor Presentation. 

BlackRock’s MPS team follows a disciplined approach to model portfolio construction. Start with a long-term strategy: Incorporating long-term structural trends that align with client goals and risk tolerance. These set the high-level parameters on risk, asset allocation, model composition, rebalancing and cost. The process leverages a variety of quantitative (machine) and discretionary (human) inputs to create neutral starting points of the portfolios. Adapt to changing market conditions: Market environment is fluid and returns can flip-flop over time, necessitating a flexible approach to managing portfolios. BlackRock's deep knowledge can help. The models aim to help investors adapt effectively to the ever-changing macro conditions for alpha generation. The model allocates both between (e.g. stocks vs. bonds vs. alternatives) and within (e.g. regional equity, duration timing, amount of credit risk, etc.) asset classes. Similarly, the process incorporates qualitative (human) inputs to supplement robust quantitative signals to better respond to conditions that data may not capture. The models follow a dynamic strategy and typically undergo rebalancing 4 - 6 times a year. Select actively managed mutual funds: The model portfolios are built with BlackRock's flagship mutual funds that generate alpha through varieties of investment style, allowing the model portfolios to benefit from diversification across asset classes and investment approaches (e.g. fundamental, systematic & global macro).