Global Asset Allocation (GAA) Portfolio by Meb Faber

The Global Asset Allocation (GAA) Portfolio by Meb Faber is a static, broadly diversified multi-asset portfolio described in Meb Faber's book Global Asset Allocation: A Survey of the World's Top Asset Allocation Strategies. Rather than advocating a single proprietary model, Faber used the GAA as a composite benchmark drawn from the allocations of prominent investors and endowments. The portfolio holds a wide range of asset classes including global equities, bonds, real estate, commodities, and gold in fixed proportions.

Investment Philosophy

Faber's GAA is built on the premise that the average of multiple thoughtful asset allocation strategies — each designed by serious practitioners — is likely to be more robust than any single approach. It is agnostic about predicting which asset class will outperform and instead seeks diversification across economic regimes. The portfolio is a buy-and-hold strategy, rebalanced periodically, without any tactical overlay or momentum filter.

Who It's For

The GAA is suited to investors who want comprehensive global diversification in a simple, static structure and are comfortable holding a wide range of asset classes including alternatives such as commodities and gold. It appeals to investors who are sceptical of active management and market timing but want broader diversification than a standard equity-bond portfolio provides.

Pros

• Exceptionally broad diversification across asset classes, geographies, and economic regimes
• Static buy-and-hold structure requires minimal ongoing management
• Grounded in the collective wisdom of multiple sophisticated allocation frameworks

Cons

• The wide diversification means the portfolio will always lag the best-performing asset class in any given period
• Multiple asset classes including commodities and gold can be difficult or expensive to implement efficiently
• No dynamic or momentum-based adjustment means the portfolio does not respond to changing market conditions

Technical Notes

Faber also published a timing version of the GAA that applies a simple moving average rule to each asset class, moving to cash when an asset is in a downtrend. See the Ivy Portfolio for a related approach.