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BlackRock GSS ESG Screened Balanced Model

About this Fund

Fund Detail

PDS https://informedinvestor.com.au/view/pds/106759-2024-03-01-02:38.pdf
FUND MANAGER BlackRock Investment Management (Australia)
ASX Code
APIR MAC000677
ASSET CLASS MULTI-ASSET
INVESTMENT STYLE

Uses strategic asset allocation to provide long term exposures to each asset class, and invests in a diverse portfolio of managed funds and EFTs. Allocation is approximately 50% defensive and 50% growth.

INVESTMENT PROFILE

aim to beat benchmark after fees over a rolling 5 year period.

CURRENCY MANAGEMENT
INCEPTION DATE
BENCHMARK Morningstar Australia balanced target allocation NR AUD index
FUND SIZE Morningstar Australia balanced target allocation NR AUD index
DISTRIBUTION FREQUENCY
NO. OF HOLDINGS 5-15
FEES 0.14%
STRUCTURE

Benefits

Benefits

Distributions:

  • The model income setting for the models is to accumulate income, so cash remaining in your managed account, following receipt of income in relation to assets in your managed account is consistent with the increased cash allocation in the model. No rebalance transactions are likely to occur as a result of the income distribution until the Model Manager determines how to use the additional cash.
  • If you set your income instruction in your managed account to pay to your platform account cash account, you are instructing us as platform operator to make a partial redemption from your managed account. As a result, following receipt of income in relation to the assets in your managed account, there will be less cash in your managed account than the cash allocation in the model. Your managed account is rebalanced and investments are sold across all the models you hold to satisfy the increased cash allocation.

Other Benefits

  • BlackRock has exposure to a wide range of diverse funds in multiple asset classes, such as Managed funds, ASX listed ETFs and cash.
  • The Group assigns ESG investment categories to the underlying funds on the BISP. The model manager takes into account environmental, social, ethical issues and labour standards when selecting, retaining and realising the underlying funds from the BISP.
  • Where an existing underlying fund is deemed no longer suitable, BlackRock will use reasonable efforts to divest or otherwise respond to the change within a reasonable period (Such as the following re-balance date).
  • The exclusionary screens vary between underlying funds and do not guarantee the underlying funds will exclude certain types of investments that might be deemed contrary to traditional ESG principles.
  • The Group relies on third party index providers for ESG data which is used to undertake exclusionary screens on investments within the indexes tracked by the underlying funds. If Data is incomplete, inaccurate or unavailable, the screens may not exclude the issuer or company.
  • The Group does not apply it’s ESG investment strategy and process to cash as an asset class.
  • Netwealth does not undertake any initial or ongoing ESG assessment of underlying funds in the model.
RISK LEVEL Medium
INVESTOR SUITABILITY

The fund is suitable for an ethical investor, geared towards accumulating wealth over a rolling 5 year time period

Risks

Title
Detail

Key Features

ESG Investment Strategy and Process

The BlackRock ESG Screened Managed Models predominantly invest in Managed funds and EFT’s (Exchange Traded Funds) the BlackRock Group has already approved for inclusion on it’s BlackRock Sustainable Investing Platform (BSIP). The BSIP comprises a suit of underlying funds issued by BlackRock which uses third-party ESG data as a portfolio construction input. BlackRock assigns one of its ESG categories to each underlying Fund on the BISP. The Group select funds that have been classified as ‘Screened’ or ‘Uplift’, which meet the considered description:

Screened: Underlying Funds that seek to use exclusionary screens to avoid issuers or companies that engage in certain activities such as oil and natural gas reserves, thermal coal-based power generation, controversial weapons, tobacco, and United Nations Global Compact Violations.

Uplift: Underlying Funds that seek to invest in issuers or companies that can demonstrate improved ESG characteristics (such as Higher ESG or lower carbon footprint) when compared to the funds stated universe or benchmark.

Thematic: Underlying Funds that seek to make investments in issuers or companies whose business models target and drive long-term sustainability outcomes.

Impact: Underlying Funds that seek to invest in issuers that generate positive, measurable, and additional sustainability outcomes.

Mandate

About BlackRock

BlackRock's purpose is to help people experience financial well-being. As a fiduciary to investors and a provider of financial technology, BlackRock helps millions of people build savings that serve them throughout their lives by making investing easier and more affordable.

 

BlackRock Australia's Multi-Asset Strategies and Solutions team ('MASS team') is responsible for the management of the BlackRock GSS Managed Models. This integrated team of investment strategists and portfolio managers is part of BlackRock's global multi-asset team, with the professionals responsible for these models based in Sydney, Melbourne, Singapore and Hong Kong. The MASS Australia team has managed multi-asset portfolios since 1992 and manages over A$60 billion in assets across its diversified funds range, model portfolios, absolute return strategies and custom mandates.

 

Asset Class

Minimum asset allocation %

Strategic asset allocation  %

Maximum asset allocation  %

Australian Equities

10

19

30

International Equities

25

31

45

Australian Property

0

0

10

International Property

0

0

10

Alternative

0

0

10

Australian Fixed-Interest

20

31.5

44

International Fixed-Interest

0

10.5

25

Cash

0

8

20