Attached is our most recently updated Fund Review on the BlackRock Multi Opportunity Fund.  

We would like to highlight the following aspects of the Fund:

• The Fund offers broad diversification across asset classes including equities, fixed income, currencies and commodities with an attractive risk profile, having provided double digit returns in 2009 through 2012 with low volatility of 4.14% since inception. 
• The current strategy has seen the Fund record only three negative months since May 2010, leading to annualised returns over the past 48 months (to October 2013) of 12.31% and an annualised volatility of 2.13% pa. The four year Sharpe Ratio is 3.66, indicating an excellent reward-to-risk ratio.  
• BlackRock's Active Scientific involves extensive research into every aspect of the investment process starting with the identification of fundamental investment insights. These are thoroughly tested to ensure that the outcome consistently adds to performance: Quantitative analysis is also applied to balance both performance and risk ensuring the position is only taken when the potential for reward is adequate.  Only insights meeting this multi level process are implemented into portfolios.

Sean Webster

Research and Database Manager
Australian Fund Monitors

Sean Webster

Research and Database Manager

Attached is our most recently updated Fund Review on the BlackRock Australian Equity Market Neutral Fund.

We would highlight the following:

• The Fund's portfolio generally consists of approx. 180-200 stocks in equally weighted long and short portfolios to maximise potential returns while minimising market volatility.

• The strategy has recorded a return of 11.77% since inception (Sept 2001) as compared to the ASX 200 Accumulation Index return of 8.62% and with a volatility less than one-half that of the Index at 5.63% pa as compared to 13.10% pa.

• The Fund has also recorded a maximum drawdown of 12.41% as compared to 47.19% for the Index and has had 78% positive months since inception.

• Blackrock operates in 27 countries including Australia (where BlackRock has A$63.5 billion in FUM - December 2013) managing a broad range of strategies across a variety of asset classes.

Sean Webster

Research and Database Manager
Australian Fund Monitors

AFM has updated the Fund Review on the Morphic Global Opportunities Fund.  

Key points include:

• The Fund is a global equity long/short manager with a long bias and a macro-economic overlay. The mandate allows the Fund to short sell, use derivatives and invest in assets such as commodities & currencies.
• Portfolio construction is stock selection agnostic with a bias to value based and momentum strategies. Risk management is a primary consideration in portfolio construction and the strong emphasis on risk is evidenced by the Fund's since inception annualised standard deviation of 8.59% (9.83% ASX 200 Accum Index), maximum drawdown of 1.57% (6.72% Index) and downside deviation of 1.63 (5.14 Index).
• Morphic's philosophy is that only funds with flexible investment and hedging strategies will be able to deliver acceptable, steady, real, absolute returns over the investment cycle.
• The Fund is an early stage, boutique, Sydney-based fund established in 2012 with experienced CIO's, and an investment team of 6 including a risk manager.
• The Board has a majority of independent members with significant risk and investment experience.

For further details on the Fund, please do not hesitate to contact us.

Sean Webster

Research Manager

Australian Fund Monitors