May, 2023
The Multi-Opportunity Absolute Return Fund delivered a negative return of -0.56% (net of fees) in May. This brings the Fund’s year-todate net performance to +0.89% and 1-year return to +4.32% (net of fees).
The small underperformance in May was driven by the Systematic Fixed Income component implemented by the Fixed Income Global Alpha strategy followed by the Systematic Equity Market Neutral component. The Fund’s Event Driven Strategy and Style Premia component also detracted, but this was offset by positive contributions from the Fundamental Equity Long/Short strategies and the Fund’s Global Macro component
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/blackrock-multi-opportunity-absolute-return-fund-fund-update-en-au-19.pdfApril, 2023
The main drivers of performance were the Global Macro component followed by Systematic Equity Market Neutral. The Fundamental Equity component also supported the fund performance over the month. The Style Premia component was flat over the period. The Systematic Fixed Income component implemented by the Fixed Income Global Alpha strategy weighed on the fund performance over the month.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/blackrock-multi-opportunity-absolute-return-fund-fund-update-en-au-18.pdfMarch, 2023
Three of the six hedge fund components contributed positively over the first quarter of the year. The main drivers of performance were Systematic Equity Market Neutral and the Style Premia component which supported the fund performance over the quarter while the Fundamental Equity component was relatively flat over the period. The Systematic Fixed Income component implemented by the Fixed Income Global Alpha strategy weighed on the fund performance over the quarter. Global Macro component also detracted over the period.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/blackrock-multi-opportunity-absolute-return-fund-fund-update-en-au-17.pdfFebruary, 2023
The Multi-Opportunity Absolute Return Fund delivered a positive return of +0.52% (gross) in February continuing the strong positive momentum from last quarter to this year as well.
Following a strong start to the year, financial markets experienced more volatility in February as strong economic data drove a repricing higher in interest rates. Global equities, as measured by the MSCI World Index (hedged), declined by 1.6% over the month, while the unhedged index finished February up 2.1% as currency moves offset the decline in international share prices. Fixed Income markets, as represented by the Bloomberg Barclay
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/blackrock-multi-opportunity-absolute-return-fund-fund-update-en-au-16.pdfNovember, 2022
Positive performance was delivered by two of the five hedge fund components. The main drivers of the performance were the Systematic Equity Market Neutral component and Global Macro. Underperformance was driven by Systematic Fixed Income component implemented through Fixed Income Global Alpha Fund. Style Premia and Fundamental Equity Long/ Short components had a relatively muted contribution to the fund return over the month.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/blackrock-multi-opportunity-absolute-return-fund-fund-update-en-au-15.pdfOctober, 2022
October saw a reprieve for risk assets, with the European energy crisis showing signs of easing and investors speculating there could soon be a potential dovish pivot by central banks. Global equities rallied over the month and the MSCI World Index rose by +7.8% in Australian dollar terms, with Developed Markets outperforming their Emerging Market counterparts. Fixed Income markets saw varied performance, with global bonds closing the month down -0.4% while Australian bonds posted positive returns of +0.9%. Riskier parts of the fixed income market also recorded positive performance given the improvement in risk appetite and tightening of credit spreads.
The Event Driven strategy (BlackRock Global Merger Partners) had a positive return over the month. Top contributors: The Fund was invested in 11 mergers that closed during the month. A hard catalyst position in TD Bank/First Horizon contributed to performance as the merger spread tightened over the period. A position in Elon Musk/Twitter contributed to performance as the parties successfully completed the transaction at the original terms. Rogers Communications/Shaw Communications was also additive to performance following a government minister in Canada clarifying the regulatory condition on the transaction.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/blackrock-multi-opportunity-absolute-return-fund-fund-update-en-au-14.pdfSeptember, 2022
The Multi-Opportunity Absolute Return Fund delivered a positive return of +0.88% (gross) in September, bringing Q3 performance to +2.51% (gross). Five of the six hedge fund components contributed positively over the quarter. The Systematic Fixed Income component was the top contributor followed by the Systematic Equity Market Neutral component. Macro and Style Premia components also delivered positive returns over the period. The only detractor was the Fundamental Equity strategies which saw mixed performance from the sub-strategies over the period.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/blackrock-multi-opportunity-absolute-return-fund-fund-update-en-au-13.pdfAugust, 2022
The BlackRock Multi Opportunity Absolute Return Fund had a slightly positive return of 0.84% over the month of August (gross).
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/blackrock-multi-opportunity-absolute-return-fund-fund-update-en-au-12.pdfJuly, 2022
Performance was broad based majorly driven by three of the five hedge fund components posting a positive contribution for the month. The Systematic Equity Market Neutral component led the performance delivering a positive return over the month. The other two contributing components were the Systematic Fixed Income Strategies implemented through Fixed Income Global Alpha Fund and Fundamental Equity Long/Short Strategies which delivered modest positive return contributions for the month. The other two components (Style Premia and Global Macro) were roughly flat over the period.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/blackrock-multi-opportunity-absolute-return-fund-fund-update-en-au-11.pdfJune, 2022
The BlackRock Multi Opportunity Absolute Return Fund underperformed over the month of June, down -0.5% (net) and the fund detracted -1.4% (net) for the second quarter of 2022. Quarterly performance was mixed across the underlying components with the fundamental equity component being the primary detractor. The systematic components also underperformed over Q2, with the fixed income component (implemented by the Fixed Income Global Alpha Fund) and the systematic equity long/short components, led by the 32 Cap Fund both detracting from overall Fund performance. The style premia componewnt delivered a positive contribution. Finally, Macro strategies supported the performance through the quarter with a slightly positive contribution to the overall fund.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/blackrock-multi-opportunity-absolute-return-fund-fund-update-en-au-10.pdfMay, 2022
The BlackRock Multi Opportunity Absolute Return Fund had a positive return of +0.4% over the month of April (gross of fees).
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/blackrock-multi-opportunity-absolute-return-fund-fund-update-en-au-1-2.pdfApril, 2022
The BlackRock Multi Opportunity Absolute Return Fund had a positive return of +0.4% over the month of April (gross of fees).
Top contributors: Equity & Capital Structure strategies were the main contributor in April. Performance was led by US strategies. Across subsectors, strategies benefitted from both the winners and losers of the stagflationary environment. Credit-informed strategies benefitted from longs in Oil and select Exploration & Production names as demand for energy remained strong. In US convertibles strategy, positive performance was driven by shorts in high growth names which underperformed as rates rose
Top detractors: The top 10 detractors were all long positions. The largest detractors were some of the fund’s larger holdings, and so the cost, measured in basis points, is as much a reflection of the large weightings as the percentage falls in the shares. The top detractor was Alphabet, which fell back after results showed a slowdown in YouTube revenue growth which was in contrast to recent quarters. This seems to be a function of current slower marketing spend especially in Europe. The second largest detractor was Microsoft which posted good results but were not able to beat earnings substantially unlike recent times. The outlook remains for solid double-digit growth as there is no evidence that Enterprise digital spending is waning. The third largest detractor was Amazon, which did see a profit shortfall in its retail business mainly due to supply chain and inflationary pressures, at a time when the company has been investing significantly in incremental capacity to reduce delivery times in order to drive orders and order frequency.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/blackrock-multi-opportunity-absolute-return-fund-fund-update-en-au-9.pdfMarch, 2022
The BlackRock Multi Opportunity Fund had a positive month of March, up +0.5% (net), however the fund detracted -1.1% (net) for the first quarter of 2022 as a whole. Quarterly performance was mixed across the underlying funds. The fundamental equity strategies were the major detractor for the quarter. The systematic fixed income component (implemented by the Fixed Income Global Alpha Fund) and the style premia strategy (implemented by Style Advantage Fund) also underperformed through the quarter The systematic active equities strategies delivered mixed returns yet overall the component delivered a positive contribution, led by the 32 Capital Fund. Finally, Macro strategies remained relatively muted over the period
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/blackrock-multi-opportunity-absolute-return-fund-fund-update-en-au-8.pdfJanuary, 2022
Looking at performance drivers, the Fund’s underlying hedge fund strategies recorded mixed performance.
The fundamental equity long/short strategies led the underperformance with all three funds underperforming significantly. However, on the other hand, the systematic strategies delivered a strong positive performance which offset the fundamental component, bringing the overall performance at the Multi Opportunity Fund level to small negative on the month. Systematic active equities, led by the 32 Capital Fund, delivered a strong January return, while systematic fixed income, implemented via the Fixed Income Global Alpha Fund, also posted a positive result. Event driven strategies posted a small negative contribution, while global macro strategies were roughly flat. Style Premia strategies continued to show consistency, delivering a positive return for the month.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/blackrock-multi-opportunity-absolute-return-fund-fund-update-en-au-7.pdfDecember, 2021
The last quarter of the year was a volatile one for financial markets. The emergence of the Omicron variant of COVID-19 pushed global case numbers to new highs, adding significantly to investor uncertainty over the period. Despite the tightening of restrictions in some regions, central banks pushed ahead with their normalization plans and took on a more hawkish tilt. Recent data supported the notion that the Omicron variant has a milder effect on the population and hospitalization rates appeared manageable. Investors looked through the noise and volatility in markets and pushed broad based equity indices higher over the period. Yet, there were some significant rotations and sectoral swings underneath the surface. For example, growth stocks (in particular non-profitable, smaller companies) sold off sharply towards year-end and into 2022.
Fixed Income markets also experienced heightened volatility over the quarter, as several central banks pivoted towards a more hawkish policy stance. Global bond yields continued to rise and most developed market government bond indices ended the year in negative territory. Riskier parts of the fixed income markets, such as emerging markets debt and high yield indices recorded mixed performance over the quarter
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/blackrock-multi-opportunity-absolute-return-fund-fund-update-en-au-6.pdfOctober, 2021
The BlackRock Multi Opportunity Absolute Return Fund posted a negative return of -0.91% in October (net of fees). This brings the Fund’s year-to-date return to +1.7%, including +1.6% of alpha (net of fees).
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/blackrock-multi-opportunity-absolute-return-fund-fund-update-en-au-1-1.pdfSeptember, 2021
The BlackRock Multi Opportunity Absolute Return Fund recorded a small negative return in August of -0.6% (after fees). This brings the Fund’s year-to-date return to +3.79%, including +3.73% of alpha (after fees).
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/blackrock-multi-opportunity-absolute-return-fund-fund-update-en-au-5.pdfJuly, 2021
The BlackRock Multi Opportunity Absolute Return Fund gained +1.35% over the quarter (after fees), bringing the Fund’s year-to-date return to +4.39%, including +4.34% of alpha (after fees). All sub-components recorded a positive return for the quarter, led by the Fund’s fundamental long/short equity strategies, followed by the systematic equity marketneutral and fixed income strategies.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/blackrock-multi-opportunity-absolute-return-fund-fund-update-en-au-4.pdfMay, 2021
The BlackRock Multi Opportunity Absolute Return Fund recorded a small positive return in May gaining 0.05% (after fees). This brings the Fund’s year-to-date return to +4.40%, including +4.36% of alpha (after fees). The Fund’s underlying fixed income alpha strategies drove the small outperformance in May, along with positive contribution from the global macro hedge fund component. Systematic equity market-neutral strategies detracted, while the fundamental equity long/short strategies recorded flat performance in May
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/blackrock-multi-opportunity-absolute-return-fund-fund-update-en-au-2.pdfMarch, 2021
The BlackRock Multi Opportunity Absolute Return Fund had a strong start to 2021 and gained 3.00% over the first quarter (after fees). This brings the Fund’s 1-year return to +13.48%, including 13.28% of alpha (after fees). Looking at performance drivers over the quarter, the Fund’s systematic market-neutral equity strategies drove the positive performance, along with positive contribution from the fixed income alpha component. Our global macro hedge fund detracted slightly, while the fundamental equity long/short strategies generated relatively muted performance over the period.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/blackrock-multi-opportunity-absolute-return-fund-fund-update-en-au-1.pdfNovember, 2020
The BlackRock Multi Opportunity Absolute Return Fund (the “Fund”) declined 0.72% in November (after fees). This brings the Fund’s year-to-date return to +5.51%, on track to meet its annual performance objective. The Fund’s underlying alpha strategies recorded mixed performance in November. Our event driven and global macro hedge fund strategies generated positive returns, while our systematic equity market-neutral, active fixed income and fundamental equity long/short strategies detracted.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/blackrock-multi-opportunity-absolute-return-fund-fund-update-en-au.pdfticker: BLK0001AU
release_schedule: Monthly
commentary_block: Array
factsheet_url:
Strategy Review
asset_class: Alternatives
asset_category: FOHF
peer_benchmark: Alternatives - FOHF Index
broad_market_index: Credit Suisse AllHedge Fund Index
structure: Managed Fund
manager_contact_details: Array
fund_features:
BlackRock Multi Opportunity Absolute Ret aims to achieve a return of 8% p.a., before fees, above the RBA Cash Rate Target (Benchmark) over rolling 3-year periods.