BlackRock Concentrated Industrial Performance Review | News

What is the BlackRock Concentrated Industrial fund?

BlackRock Concentrated Industrial aims to deliver returns that are 4-6% (before fees) p.a. above those of the S&P/ASX 300 Industrials Accumulation Index ex top 5 stocks by market capitalization (Benchmark) over rolling 3-year periods. The Fund applies a fundamental approach that is focused on bottom up analysis, where detailed research is conducted prior to any investment decision. There is a strict focus on quality first and only those companies that meet the following quality filters will be considered for inclusion in the Fund: Quality management, Moderate debt levels, Profits, Superior businesses and Environmental, social and governance.

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Growth of $1000 Investment Over Time

Performance Report

Peer Comparison Report

Latest News & Updates For BlackRock Concentrated Industrial

BlackRock Concentrated Industrial Fund Commentary September 30, 2022

The fund returned +1.82% during the quarter, net of fees, outperforming its benchmark (ASX300 Industrials ex Top 5 Market Cap Index) return of -3.15% by 4.97%. On a market adjusted basis, amongst the top contributors for the month were our positions in NRW Group (NWH), Peter Warren (PWR) and Austal Group (ASB) while Mass Group (MGH), Orica (ORI) and Goodman Group (GMG) were amongst the top detractors.

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Product Snapshot

Performance Review
Product Overview
Peer Comparison
Product Details

Performance Review

Fund Name	Last Month ? Returns after fees in the most recent (last) month).	3 Months Return ? Returns after fees in the most recent 3 months.	1 Year Return ? Trailing 12 month returns.	3 Years Average Return ? Average Annual returns from the last 3 years.	Since Inc. Average Return ? Average (annualised) returns since inception	1 Year Std. Dev. (Annual) ? The standard deviation (or annual volatility) of the last 12 months.	3 Years Std. Dev. (Annual) ? The average standard deviation (or annual volatility) from the last 3 years.	Since Inc. Std. Dev. (Annual) ? The average standard deviation (or annual volatility) since the fund inception.	1 Year Max Drawdown ? The maximum drawdown in the last 12 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.	3 Year Max Drawdown ? The maximum drawdown in the last 36 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.	Since Inc. Max Drawdown ? The maximum drawdown since inception - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
BlackRock Concentrated Industrial	3.75%	7.94%	21.94%	-4.02%	5.52%	9.99%	16.94%	16.82%	-3.63%	-31.64%	-33.2%

Product Overview

Fund Name	APIR Code ? A Product Code is unique a identifier code issued by a group or governing body, to reference products in a large group. For an example, APIR codes are commonly used for Funds and Ticker codes are commonly used for Securities such as ETFs and Stocks.	Structure ?	Asset Class ? An Asset Class breakdown provides the percentages of core asset classes found within a mutual fund, exchange-traded fund, or another portfolio. Asset classes (in microeconomics and beyond) generally refer to broad categories such as equities, fixed income, and commodities.	Asset Category ? An Asset Category is a grouping of investments that exhibit similar characteristics and are subject to the same laws and regulations. Asset categories (or a sub-asset class) are made up of instruments which often behave similarly to one another in the marketplace, looking down to the Asset Category level is important if looking to build a diversified portfolio.	Peer Benchmark Name ? A Peer Index (benchmark) refers to a peer group of investment managers who have the same investment style or category. It is used to compare the performance of one manager to their peer group, which makes it simpler for investors to choose between the vast number of investment managers.	Broad Market Index ? A Market Index (benchmark) refers to a hypothetical portfolio of investments that represents a segment, asset or category of an investable market. Market Indices are used to benchmark managers performance, to assist their style reliability and ability to provide excess returns.	FUM ? Funds/Assets under management (AUM) is the total market value of the investments that a person or entity manages on behalf of clients. Assets under management definitions and formulas vary by company.	Management Fee ? A management fee is a charge levied by an investment manager for managing an investment fund. The management fee is intended to compensate the managers for their time and expertise for selecting finanical products and managing the portfolio.	Performance Fee ? A performance fee is a payment made to an investment manager for generating positive returns. This is as opposed to a management fee, which is charged without regard to returns. A performance fee can be calculated many ways. Most common is as a percentage of investment profits, often both realized and unrealized. It is largely a feature of the hedge fund industry, where performance fees have made many hedge fund managers among the wealthiest people in the world.	Spread ? A spread can have several meanings in finance. Basically, however, they all refer to the difference between two prices, rates or yields. In one of the most common definitions, the spread is the gap between the bid and the ask prices of a security or asset, like a stock, bond or commodity. This is known as a bid-ask spread.
BlackRock Concentrated Industrial	BLK0012AU	Managed Funds	Domestic Equity	Australia Mid/Small Blend	Domestic Equity - Mid/Small Blend Index	ASX Index MidCap 50 Index	201.76 M	0.85%	0.00%	0.55%

Peer Comparison

Fund Name	Peer Index Name ? A group of individuals who share similar characteristics and interests are called peer groups. Peer group analysis is an essential part of assessing a price for a particular stock in investment research. The emphasis here is on making a comparison, meaning that the peer group constituents should be more or less identical to the company being examined, especially in terms of their main business and market capitalization areas.	12 Months Excess Return ? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.	Excess Return Annualised Since Inception ? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.	12 Months Alpha ? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market return over 12 months. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.	Alpha Annualised Since Inception ? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market annualized since inception. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.	12 Months Beta ? Rolling 12Month Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).	Beta Annualised Since Inception ? Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).	12 Months Tracking Error ? 12Month Tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark over the last 12 months. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.	Tracking Error Since Inception ? Since Inception tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark since inception. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.	12 Months Correlation ? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.	Correlation Since Inception ? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.
BlackRock Concentrated Industrial	Domestic Equity - Mid/Small Blend Index	-0.18%	-1.66%	NA%	NA%	NA%	0.89	2.91%	5.99%	0.97	0.94

Product Details

Fund Name	Verifed by SMSF Mates	Manager Address	Phone	Website	Email
BlackRock Concentrated Industrial	Yes	PO Box N43, Grosvenor Place, Sydney NSW 1220	02 9272 2200	https://www.blackrock.com/au	ishares.australia@blackrock.com

Product Due Diligence

What is BlackRock Concentrated Industrial

BlackRock Concentrated Industrial is an Managed Funds investment product that is benchmarked against ASX Index MidCap 50 Index and sits inside the Domestic Equity - Mid/Small Blend Index. Think of a benchmark as a standard where investment performance can be measured. Typically, market indices like the ASX200 and market-segment stock indexes are used for this purpose. The BlackRock Concentrated Industrial has Assets Under Management of 201.76 M with a management fee of 0.85%, a performance fee of 0.00% and a buy/sell spread fee of 0.55%.

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Historical Performance Commentary

Performance Commentary - June 30, 2022

The fund returned -21.06% during the quarter, net of fees, underperforming its benchmark (ASX300 Industrials ex Top 5 Market Cap Index) return of -11.21% by -9.85%.
On a market adjusted basis, amongst the top contributors for the quarter were positions in Treasury Wine Estate (TWE), Orica (ORI) and IAG (IAG) while Nine Entertainment (NEC), Dubber (DUB) and Imricor (IMR) were amongst the top detractors

Performance Commentary - March 31, 2022

Performance Commentary - November 30, 2020

The fund continued to deliver positive returns for investors this month, gaining +4.8% in absolute terms, however it underperformed its strongly performing benchmark. November was an eventful month for equities globally and in Australia. On November 9th, the announcement of a potential effective covid-19 vaccine by Pfizer-BioNTech resulted in a market rotation, leading investors to sell off the beneficiaries of the pandemic in favour of the value and cyclical names that had suffered the most since the first round of lockdowns.

Some of our more value focused names performed well during the month including Qantas, Star Entertainment, Monash, CSR and the mining service/contractor names. The underperformance was concentrated across just a few names that had been strong performers year to date and saw investors take profits post the vaccine news. In most cases nothing fundamentally has changed, and we have already seen a recovery in their performance in December.

As a style agnostic fund we are still finding good opportunities in both growth and value names and we believe a concentrated portfolio of these best ideas provide investors with diversification and superior returns regardless of what style factor (value or growth) is performing well at the time. Another driver of the overall market gains was the outcome of the US presidential election. Volatility had increased leading into the election but has dramatically fallen since which has seen investor risk appetite rise.

A democratic win has given the market confidence that further stimulus packages in the US will be announced and the fact the Republicans retained control of the Senate means tax increases or increased regulation will not be as forth coming as they could have been if we had seen a blue wave. As we look into the first half of calendar year 2021, equities continue to look attractive in a world where interest rates have been pinned to very low levels by central banks. We are likely to see synchronised global growth again as the world emerges from heavy lockdowns and we cycle over extremely low levels of economic activity from the same period in 2020.

On a more medium term view a high degree of uncertainty remains as to what level of economic output we return to once the vaccines allow a resumption of normal life and what permanent changes we will see to how employers and consumers behave. The abundance of winners and losers has proven a fertile ground for active managers and we continue to find names that meet our five quality filters and that we think can continue to invest capital well for the long term to compound shareholder wealth.

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BlackRock Concentrated Industrial (BLK0012AU) Report & Performance