iShares Hedged International Equity Index Fund

About this Fund

Fund Detail

PDS https://informedinvestor.com.au/view/pds/100286-2023-10-26-02:33.pdf
FUND MANAGER BlackRock Investment Management (Australia)
ASX Code
INVESTMENT STYLE To achieve its investment objective the Fund invests in units of the iShares Wholesale International Equity Index Fund.
INVESTMENT PROFILE The Fund aims to match the performance of the Benchmark before fees.
BENCHMARK MSCI World ex Australia Index (hedged in AUD with net dividends reinvested)
FUND SIZE MSCI World ex Australia Index (hedged in AUD with net dividends reinvested)
NO. OF HOLDINGS Around 1500
FEES 0.20% p.a.



Benefits of investing in the iShares Hedged International Equity Index Fund

  • Index tracking: The Fund is an index tracker and seeks to provide investors with similar returns, before fees, to those of its benchmark index.
  • Diversification: In contrast to a direct investment in a single company or bond, the Fund provides, as far as practicable and possible, exposure to all of the securities or instruments within its benchmark index.
  • Lower cost: As the Fund is passively managed and designed to track a particular index, the expenses of managing the Fund are generally lower compared to other forms of retail managed funds.

Risk level


Investor suitability

The Fund may be suitable for long-term investors seeking a broad exposure to the world's developed stock markets.




Key Features

About the Fund

The Fund aims to provide investors with the performance of the market, before fees and the cost of hedging, as measured by the MSCI World ex-Australia Net TR Index (hedged in AUD) (Index).

Investment approach

Our investment style is based on our belief that people, leveraged by technology, are central to the consistent achievement of our clients' investment goals.

We believe that a focus on total performance management is the best way to achieve superior investment results. Through total performance management, we aim to understand; measure; forecast; and manage the three dimensions of investment performance — return, risk and cost.


How we invest your money

We believe that full replication is the most appropriate investment strategy to track the performance of the Index as risk relative to the Index is minimised. Portfolios automatically rebalance, which minimises turnover and trading costs.

Our full-replication approach aims to purchase every security in the Index, while considering transaction costs.

A passive currency hedge is applied, which seeks to minimise the effect of currency fluctuations on returns by converting the currency exposure of the Index back to Australian dollars. This type of hedging strategy involves the forward sale of a set of currencies in amounts that correspond to the beginning of period value of the international assets in the portfolio. The hedge is then reset periodically or as required, to account for any changes in the value of the international assets in the portfolio.

To achieve its investment objective the Fund invests in units of the iShares Wholesale International Equity Index Fund (Underlying Fund), another fund managed by us that has the same (unhedged) investment strategy as the Fund. The Fund also invests in currency forward contacts, which are used to implement the passive currency hedge. The Underlying Fund invests in the international developed market stocks that form the Index. Derivatives, such as futures, forwards and options can be used to manage risk and return. When derivative positions are established, they will always be backed by cash holdings and/or underlying assets. Derivative securities will not be used to gear the Fund or Underlying Fund.

The Fund and Underlying Fund may also hold a small allocation of cash (or cash equivalents that may include units in other BlackRock funds) for cash flow management purposes.

The Fund's investment strategy aims to remain fully exposed to the international developed stock market, with cash exposure being maintained at a minimum, which may be, wherever practicable, equitised using index futures.

While the constitution of the Fund allows the Responsible Entity to borrow, it is our intention that no borrowing arrangements will be entered into, other than temporary overdrafts, which may be used as a means of managing certain cash flows.