BlackRock Diversified ESG Stable Fund

About this Fund

Fund Detail

PDS https://informedinvestor.com.au/view/pds/101430-2023-10-26-02:19.pdf
FUND MANAGER BlackRock Investment Management (Australia)
ASX Code
INVESTMENT STYLE The Fund invests in Australian and international shares and bonds, listed property, global listed infrastructure and cash.
INVESTMENT PROFILE The Fund aims to outperform its neutral portfolio benchmark by 0.45% p.a., after fees, over rolling 3-year periods.
BENCHMARK Benchmarked against Multi-Asset Moderate Investor Index and sits inside the Multi-Asset - 21-40% Diversified Index.
FUND SIZE Benchmarked against Multi-Asset Moderate Investor Index and sits inside the Multi-Asset - 21-40% Diversified Index.
FEES 0.70% p.a.



Benefits of investing in the BlackRock Diversified ESG Stable Fund

  • Superior investment returns: the Fund aims to achieve superior investment performance that exceeds the returns of the neutral portfolio benchmark by 0.45% p.a. over rolling 3-year periods, after fees.
  • Capital stable orientated investment portfolio: the Fund provides investors with exposure to a capital stable orientated portfolio, which is managed relative to a benchmark comprised of approximately 30% growth assets and 70% defensive assets.
  • Global Diversification: the Fund invests across a range of domestic and international asset classes in seeking to maximise the benefits of global diversification.
  • ESG focused investment process: the Fund incorporates ESG factors into its investment process and screens out certain ESG sensitive sectors.



RISK LEVEL Medium to Low

This product is likely to be appropriate for a consumer seeking capital preservation with a medium risk/return profile.



Key Features

About the Fund

The strategy invests in Australian and international shares and bonds, listed property, global listed infrastructure and cash. While the cash, global bond and infrastructure exposures are through BlackRock indexed funds, the strategy gains its exposure to the other asset classes via BlackRock active funds. Ultimately, the strategy implements a portfolio that combines strategic asset allocation with active management in order to achieve the fund's objective.

The Fund will seek to meet its investment objective while taking into account the principles of environmental, social and governance (ESG) focused investing. This will be achieved via both ESG integration and the application of negative screens that excludes controversial sectors from the portfolio.

Investment strategy and style

The Fund aims to achieve superior investment performance through providing returns that exceed those of the neutral portfolio benchmark by 0.45% p.a., after fees, over rolling 3-year periods.

The neutral portfolio benchmark comprises a portfolio of published indexes, approximately 70% of which represent interest bearing assets and 30% of which represent growth assets.

Our investment style is based on our belief that people, leveraged by technology, are central to the consistent achievement of our clients' investment goals. A single, global investment philosophy unites all of the BlackRock Group's scientific (quantitative) investment strategies.

Knowledgeable investment people leveraging their skills through the extensive use of technology is a hallmark of our scientific investment approach. 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

The Fund's investment strategy accesses various asset classes by investing in other pooled investment vehicles (Underlying Funds), including those managed by us or other entities within the BlackRock Group. The strategy invests across a range of active and passive investment strategies to construct the portfolio's strategic asset allocation. Each active strategy utilises a disciplined approach to investing that aims to add value over the strategic allocation and control for risk. In addition to long only active funds, Underlying Funds may also include exposure to a diversified range of absolute return strategies seeking the Fund's overall performance objective.

The selection of an Underlying Fund for inclusion in the strategy is the result of a comprehensive due diligence process, to ensure that any new investment is in line with fiduciary duties and in compliance with related party policies. The investment strategy may be a seed, lead or only investor in an Underlying Fund.

The BlackRock group aims to continuously monitor, research and improve the investment strategies of the Underlying Funds. Such changes may result in changes to the Fund's asset exposures over time. While we will endeavour to notify unitholders of significant strategy enhancements, we will not seek consent prior to implementing such strategy changes.

The table below details the Fund's present asset allocation guideline across the various asset classes, along with applicable performance benchmark indices. The investment mix can change significantly and quickly. During periods of significant market movement, allocations may be outside the maximum and minimum permitted ranges (as shown in the table below). Benchmark weights and investment ranges are also subject to periodic review.

The Fund invests substantially all of its assets in the BlackRock Wholesale Diversified ESG Stable Fund (Wholesale Fund), another fund managed by us that has the same investment strategy as the Fund. The Wholesale Fund generally invests in the Underlying Funds and derivatives, such as futures, forwards and options, which 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 Wholesale Fund. The Fund and Wholesale 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.

Asset allocation

(Asset class / Composite Benchmark Weight of the Relevant Index)

  • Australian Equities: 10%
  • International Equities - Developed markets (Unheged) : 0%
  • International Equities - Developed markets (Heged) : 8%
  • Emerging markets Equities (Unhedged): 5%
  • Internal Listed Infrastructure (Unheged): 5%
  • Global listed real estate (REITs) (Unhedged): 3%
  • Gold (Unheged): 3%
  • Australian fixed interest: 10%
  • Australia Inflation-Linked Bonds: 12%
  • Australia Corporate Bonds: 8%
  • Developed Markets Fixed Intrest: 8%
  • US Inflation-Linked Bonds: 9%
  • Global High Yeild Corprate Fixed Intrest: 3%
  • Cash: 16%

Foreign Currency Exposure: 16%