September, 2023
The fund retracted 2.84% in September, beating the S&P/ASX300 Accumulation Index return of -2.89% by +0.04%.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/206378004.pdfSeptember, 2022
The fund returned +1.82% during the quarter, net of fees, outperforming its benchmark (ASX300 Industrials ex Top 5 Market Cap Index) return of -3.15% by 4.97%. On a market adjusted basis, amongst the top contributors for the month were our positions in NRW Group (NWH), Peter Warren (PWR) and Austal Group (ASB) while Mass Group (MGH), Orica (ORI) and Goodman Group (GMG) were amongst the top detractors.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/192029375.pdfJune, 2022
The fund returned -21.06% during the quarter, net of fees, underperforming its benchmark (ASX300 Industrials ex Top 5 Market Cap Index) return of -11.21% by -9.85%.
On a market adjusted basis, amongst the top contributors for the quarter were positions in Treasury Wine Estate (TWE), Orica (ORI) and IAG (IAG) while Nine Entertainment (NEC), Dubber (DUB) and Imricor (IMR) were amongst the top detractors
March, 2022
The fund returned +1.15% for the month, net of fees, underperforming its benchmark (ASX300 Industrials ex Top 5 Market Cap Index) return of +4.21% by 3.06%. On a market adjusted basis, amongst the top contributors for the month were our positions in Monash IVF (MVF), ALS Limited (ALQ) Superloop (SLC) and Nine Entertainment (NEC) while Fineos (FCL), Dubber (DUB) and Siteminder (SDR) were amongst the top detractors.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/187152714.pdfNovember, 2020
The fund continued to deliver positive returns for investors this month, gaining +4.8% in absolute terms, however it underperformed its strongly performing benchmark. November was an eventful month for equities globally and in Australia. On November 9th, the announcement of a potential effective covid-19 vaccine by Pfizer-BioNTech resulted in a market rotation, leading investors to sell off the beneficiaries of the pandemic in favour of the value and cyclical names that had suffered the most since the first round of lockdowns.
Some of our more value focused names performed well during the month including Qantas, Star Entertainment, Monash, CSR and the mining service/contractor names. The underperformance was concentrated across just a few names that had been strong performers year to date and saw investors take profits post the vaccine news. In most cases nothing fundamentally has changed, and we have already seen a recovery in their performance in December.
As a style agnostic fund we are still finding good opportunities in both growth and value names and we believe a concentrated portfolio of these best ideas provide investors with diversification and superior returns regardless of what style factor (value or growth) is performing well at the time. Another driver of the overall market gains was the outcome of the US presidential election. Volatility had increased leading into the election but has dramatically fallen since which has seen investor risk appetite rise.
A democratic win has given the market confidence that further stimulus packages in the US will be announced and the fact the Republicans retained control of the Senate means tax increases or increased regulation will not be as forth coming as they could have been if we had seen a blue wave. As we look into the first half of calendar year 2021, equities continue to look attractive in a world where interest rates have been pinned to very low levels by central banks. We are likely to see synchronised global growth again as the world emerges from heavy lockdowns and we cycle over extremely low levels of economic activity from the same period in 2020.
On a more medium term view a high degree of uncertainty remains as to what level of economic output we return to once the vaccines allow a resumption of normal life and what permanent changes we will see to how employers and consumers behave. The abundance of winners and losers has proven a fertile ground for active managers and we continue to find names that meet our five quality filters and that we think can continue to invest capital well for the long term to compound shareholder wealth.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/162900690.pdfticker: BLK0012AU
release_schedule: Monthly
commentary_block: Array
factsheet_url:
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asset_class: Domestic Equity
asset_category: Australia Mid/Small Blend
peer_benchmark: Domestic Equity - Mid/Small Blend Index
broad_market_index: ASX Index MidCap 50 Index
structure: Managed Fund
manager_contact_details: Array
fund_features:
BlackRock Concentrated Industrial aims to deliver returns that are 4-6% (before fees) p.a. above those of the S&P/ASX 300 Industrials Accumulation Index ex top 5 stocks by market capitalization (Benchmark) over rolling 3-year periods. The Fund applies a fundamental approach that is focused on bottom up analysis, where detailed research is conducted prior to any investment decision. There is a strict focus on quality first and only those companies that meet the following quality filters will be considered for inclusion in the Fund: Quality management, Moderate debt levels, Profits, Superior businesses and Environmental, social and governance.