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.
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.
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%.
How has the investment product performed recently?
The recent investment performance of the investment product shows that the BlackRock Concentrated Industrial has returned 3.75% in the last month. The previous three years have returned -4.02% annualised and 16.82% each year since inception, which is when the BlackRock Concentrated Industrial first started.
How is risk measured in this investment product?
There are many ways that the risk of an investment product can be measured, and each measurement provides a different insight into the risk present. They can be used on their own or together to perform a risk assessment before investing, but when comparing investments, it is common to compare like for like risk measurements to determine which investment holds the most risk. Since BlackRock Concentrated Industrial first started, the Sharpe ratio is NA with an annualised volatility of 16.82%. The maximum drawdown of the investment product in the last 12 months is -3.63% and -33.2% since inception. The maximum drawdown is defined as the high-to-low decline of an investment during a particular time period.
What is the relative performance of the investment product?
Relative performance is what an asset achieves over a period of time compared to similar investments or its peers. Relative return is a measure of the asset's performance compared to the return to the other investment. The BlackRock Concentrated Industrial has a 12-month excess return when compared to the Domestic Equity - Mid/Small Blend Index of -0.18% and -1.66% since inception.
Does the investment product produce Alpha over its Peers?
Alpha is an investing term used to measure an investment's outperformance relative to a market benchmark or peer investment. Alpha describes the excess return generated when compared to peer investment. BlackRock Concentrated Industrial has produced Alpha over the Domestic Equity - Mid/Small Blend Index of NA% in the last 12 months and NA% since inception.
What are similar investment products?
For a full list of investment products in the Domestic Equity - Mid/Small Blend Index category, you can click here for the Peer Investment Report.
What level of diversification will BlackRock Concentrated Industrial provide?
BlackRock Concentrated Industrial has a correlation coefficient of 0.94 and a beta of 0.89 when compared to the Domestic Equity - Mid/Small Blend Index. Correlation measures how similarly two investments move in relation to one another. This establishes a 'correlation coefficient', which has a value between -1.0 and +1.0. A 100% correlation between two investments means that the correlation coefficient is +1. Beta in investments measures how much the price moves relative to the broader market over a period of time. If the investment moves more than the broader market, it has a beta above 1.0. If it moves less than the broader market, then the beta is less than 1.0. Investments with a high beta tend to carry more risk but have the potential to deliver higher returns.
How do I compare the investment product with its peers?
For a full quantitative report on BlackRock Concentrated Industrial and its peer investments, you can click here for the Peer Investment Report.
How do I compare the BlackRock Concentrated Industrial with the ASX Index MidCap 50 Index?
For a full quantitative report on BlackRock Concentrated Industrial compared to the ASX Index MidCap 50 Index, you can click here.
Can I sort and compare the BlackRock Concentrated Industrial to do my own analysis?
To sort and compare the BlackRock Concentrated Industrial financial metrics, please refer to the table above.
Has the BlackRock Concentrated Industrial been independently verified by SMSF Mate?
This investment product is in the process of being independently verified by SMSF Mate. Once we have verified the investment product, you will be able to find more information here.
How can I invest in BlackRock Concentrated Industrial?
If you or your self managed super fund would like to invest in the BlackRock Concentrated Industrial please contact PO Box N43, Grosvenor Place, Sydney NSW 1220 via phone 02 9272 2200 or via email ishares.australia@blackrock.com.
How do I get in contact with the BlackRock Concentrated Industrial?
If you would like to get in contact with the BlackRock Concentrated Industrial manager, please call 02 9272 2200.
Comments from SMSF Mates
SMSF Mate does not receive commissions or kickbacks from the BlackRock Concentrated Industrial. All data and commentary for this fund is provided free of charge for our readers general information.
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 The fund returned +1.15% for the month, net of fees, underperforming its benchmark (ASX300 Industrials ex Top 5 Market Cap Index) return of +4.21% by 3.06%. On a market adjusted basis, amongst the top contributors for the month were our positions in Monash IVF (MVF), ALS Limited (ALQ) Superloop (SLC) and Nine Entertainment (NEC) while Fineos (FCL), Dubber (DUB) and Siteminder (SDR) were amongst the top detractors.
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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