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| Fund Overview | The Fund's portfolio primarily consists of long and short Australian equity positions. The Fund may also invest in other funds managed by BlackRock. Derivative securities, such as futures, forwards, swaps and options, can be used to manage risk and return Key insights into the investment process include: Analyst Expectations, Relative Valuation, Earnings Quality, Market Signals and Timing. Short-Term return enhancing opportunities including: Dividend reinvestment plans, Manging index changes, Managing cash flows and Arbitrage, Initial public offerings and Seasoned Equity Offerings and Off Market Buybacks. |
| Manager Comments | The S&P/ASX200 rose 6.8% (8.1% accumulation) over the March quarter, but finished March down -2.7%, the worst month for the market since May 2012. There was some profit taking across much of the industrials after a very strong quarter, with the Cypriot banking crisis renewing global nervousness about the fragility of the European financial system. March also saw continued weakness in the resources sector due to uncertainty over the Chinese growth outlook and fears that rising commodity supply over the next two years could drive much weaker commodity prices. Domestically the economy showed some muted signs of strength, with improvements in consumer confidence, housing market activity and labour data causing the RBA to pause its easing cycle. Domestic cyclicals, especially consumer discretionary stocks, continued to outperform in March on anticipation of a turnaround in consumer spending. The search for yield was another theme that continued into March, concentrated largely in banks (+16.4%). The February reporting season highlighted companies’ focus on cost cutting, with margin expansion driving significant stock specific earnings improvements. The portfolio was largely unaffected by the global macro themes this quarter, however the Fund was caught in the first half of January by the sharp rally in specific domestic cyclical sectors (building materials, diversified financials) on anticipation of a domestic recovery. Performance since then has been dominated by stock specifics. The contribution from industry and risk factors was positive, while security specific returns detracted value over the quarter. |
| More Information | » View detailed profile of this fund |
