The model portfolios are constructed to provide a long-term core Exchange Traded Fund (“ETF”) asset allocation matching a target benchmark asset allocation. 

Balance exposures to assets denominated in Australian dollars with the benefits of diversification across domestic and international assets

The Australian iShares Enhanced Strategic Model Portfolios were incepted on 30 January 2015.

• The model portfolios were designed as long-term strategic asset allocations, benefiting from diversification across asset classes including: Australian and international equities, emerging markets equities and fixed income.
• Designed for Australian dollar based investors, the model portfolios were constructed to balance exposures to assets denominated in Australian dollars with the benefits of diversification across domestic and international assets.
• The model portfolios are constructed to provide a long-term core Exchange Traded Fund (“ETF”) asset allocation matching a target benchmark asset allocation.
• A quarterly portfolio rebalance seeks to deliver additional returns over the target benchmark by deviating from the target benchmark asset allocation.
• The model portfolios seek to optimally balance long-term returns, risks and costs as per the objective of five risk profiles: Conservative, Moderate, Balanced, Growth and Aggressive.

Designed for investors who:

• Seek access to a low-cost, diversified, risk based model portfolio
• Seek to match or outperform the long run strategic asset allocation benchmark
• Seek to leverage BlackRock’s global expertise and research capabilities

The iShares Enhanced Model Portfolios strategy is built around:

• Establishing the most appropriate strategic benchmark consistent with a diversified enhanced investment profile using efficient implementation via the available suite of BlackRock iShares ETFs.

• Improving the returns of the portfolio relative to the strategic benchmark via an optimization-based portfolio construction process that seeks to capture return premiums whilst managing risk and implementation costs.

• Portfolio adjustments made on a scheduled quarterly basis or more frequently during times of market stress.

• Investment approach overseen by an experienced team and a dedicated research process with a riskefficientapproach. The team is part of the wider BlackRock organization, allowing us to leverage a broad set of global insights and resources.

The importance of diversification.

Building a diversified portfolio, across asset classes, is one of the most important components in reaching your financial goals. BlackRock Model Portfolios are invested in a range of funds aiming to help you achieve better returns within your risk level.

BlackRock constructs each model portfolio with high quality and cost-efficient investments across alpha, index and factors.

• Alpha strategies - Managers delivering active returns, not static tilts.
• Index strategies - Low-cost, broad market exposures.
• Factor strategies - Historic drivers of outperformance or reduced risk.

Different strategies for varying client needs

Designed for Australian investors, the model portfolios utilise the available suite of BlackRock iShares ETFs so investors can gain the potential benefits of asset allocation with underlying investments that closely follow an index.

Diversified, cost-effective model portfolios

Our asset allocation strategies adapt to changing market conditions. We leverage low-cost, tax-efficient ETFs to help minimise portfolio expenses.

Risk management.

We use technology to think beyond what’s possible. Aladdin helps our portfolio mangers identify risks and opportunities – helping build more resilient portfolios and managing exposures over time.