Investment Strategy
BlackRock’s current Investment Strategy is to enhance returns through a fundamental stock selection process.
The investment objective of the Model Portfolio is currently pursued by investing in a concentrated portfolio of Australian shares.
The Model Portfolio invests opportunistically in perceived value adding investment ideas, or “insights”. The Managers draw on a broad spectrum of investment expertise to identify these opportunities and capitalise on them.
Insights may be found on a number of different levels, for example within a company division, at the stock level, or among a group of stocks. The identification of investment insights is a research driven process.
The Model Portfolio focuses on two broad areas to generate insights:
- Inconsistencies: identification of inconsistencies between stock prices and consensus expectations.
- Information advantage: applying substantive focus on areas of uncertainty to develop information advantage.
The development of investment insights is driven by fundamental research. Advanced techniques are used to flexibly allocate the portfolio among the various insights.
The portfolio construction process aims to focus the Model Portfolio’s position as cleanly as possible on each insight by mitigating risks that are unrewarded or where there is no insight. Our specialist Australian Equities Team has an extensive track record in fundamental analysis, quantitative research and the management of equity portfolios.
Performance to 31/07/2010
| 3 Months |
-7.17% |
-5.87% |
-1.30% |
| 6 Months |
-0.12% |
0.29% |
-0.41% |
| 1 Year |
9.13% |
10.14% |
-1.01% |
| 2 Years (%pa) |
-1.56% |
-0.55% |
-1.01% |
| 3 Years (%pa) |
-4.68% |
-5.84% |
1.16% |
| Since Inception (%pa) [08/11/2005] |
5.29% |
4.02% |
1.27% |
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Benchmark: S&P/ASX 200 Accumulation Index
Fees
Fees applicable to this Model Portfolio are set out in further detail on page 23 of the Product Disclosure Statement. The Model Portfolio Manager does not charge an Investment Fee for this Model, only a performance-based fee.
- Investment Fee - Nil
- Performance Fee - 25.00%
The Performance Fee is based on the Model’s outperformance above the benchmark 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.
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