Investment Strategy
The investment objective of the Model Portfolio is currently pursued by investing in a concentrated portfolio of Australian shares.
BlackRock’s investment approach is based on a ‘bottom up’ approach to stock selection. BlackRock conducts detailed fundamental research of individual companies to determine their investment merits. BlackRock’s investment philosophy is grounded in the belief that the perceived earnings profile ultimately is the main driver of share price performance; so we maintain a focus on the future earnings profile and cash-flow generation capability, which in part relies upon the art of identifying growth opportunities and threats.
As a result the portfolio typically exhibits a bias to growth characteristics and stocks with a higher than average return on equity.
Only stocks with the highest levels of conviction to generate the greatest absolute returns for shareholders over the medium to long term will be included in the Model Portfolio. No reference is made to a stock’s weighting in the index in the Portfolio construction process. The Model Portfolio typically holds 15 to 25 stocks.
Performance to 31/07/2010
| 3 Months |
-7.86% |
-5.87% |
-1.99% |
| 6 Months |
-1.48% |
0.29% |
-1.77% |
| 1 Year |
7.68% |
10.14% |
-2.46% |
| 2 Years (%pa) |
1.16% |
-0.55% |
1.71% |
| 3 Years (%pa) |
-3.90% |
-5.84% |
1.94% |
| Since Inception (%pa) [08/11/2005] |
6.16% |
4.02% |
2.14% |
|
^Benchmark: S&P/ASX200 Accumulation Index
Fees
Fees applicable to this Model Portfolio are set out in further detail on page 23 of the Product Disclosure Statement. There are two components to the Model Portfolio Manager’s fee:
- Investment Fee - 0.40% p.a.
- Performance Fee - 15.00%
The Performance Fee is based on the Model’s out-performance above the performance reference index, the S&P/ASX 200 Accumulation Index. Further details and an example can be found on pages 24 and 25 of the Product Disclosure Statement.
|
