MONEY MASTERS

BlackRock Concentrated Industrial Share Fund

Charlie Lanchester. Head of Australian Fundamental Active Equities BlackRock

Recognising the common practices of the ‘Big Four’ banks, and Australians’ fascination with real estate and minerals, the BlackRock Concentrated Industrial Share Fund aims to provide an extensive portfolio for the average Australian retail investor to help diversify their investments.

What you'll learn /

The BlackRock Concentrated Industrial Share Fund Money Masters course with Charlie Lanchester will give you insights into:

How a small team can thrive in a large organisation
The value of a diversified portfolio
How investing in different companies isn’t necessarily diversifying your portfolio
How to manage a small, concentrated share portfolio

About the expert /

Charlie Lanchester /

Head of Australian Fundamental Active Equities BlackRock


  • CPD hours0.25
  • Knowledge AreaCAPABILITY
  • TypeMONEY MASTERS
  • PriceFREE
  • Share

Outline of the course /

OVERVIEW

Snapshot

Recognising the common practices of the ‘Big Four’ banks, and Australians’ fascination with real estate and minerals, the BlackRock Concentrated Industrial Share Fund aims to provide an extensive portfolio for the average Australian retail investor to help diversify their investments.

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01.

Fund Philosophy

A small, nimble team supported by the foundation of the world’s biggest fund manager, this fact alone sets the BlackRock Concentrated Industrial Share Fund apart. Under the experienced management of Charlie Lanchester, the fund aims to synergise with Australian investors by picking high-quality stocks the average Australian may not be exposed to.

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02.

Role in Portfolio

The BlackRock Concentrated Industrial Share Fund takes into account that the average Australian portfolio is already highly exposed to the Big Four Banks and real estate. Utilising BlackRock’s extensive resources and access to businesses, the fund is allowed to focus purely on what matters: picking the highest quality stocks.

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03.

Competitive Advantage

Although the BlackRock Concentrated Industrial Share Fund has a small team behind it, the team was selected with the ‘best of the best’ in mind. This small team is backed by the extensive resources and access of BlackRock, allowing them to focus purely on finding the best opportunities and provide something different for Australian investors.

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04.

The Team

Among the resources that BlackRock provides the small and nimble team behind the BlackRock Concentrated Industrial Share Fund is a team of risk analysts who provide regular updates on the risk level of stocks. This useful tool allows the fund to select only the best stocks, an important advantage when selecting the few stocks that go into a concentrated fund.

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05.
STRUCTURES AND OBJECTIVES

Rules and Returns

The BlackRock Concentrated Industrial Share Fund aims to provide diversification by avoiding the top players by market capitalisation, currently the Big Four Banks. It therefore measures itself against a bespoke index that factors in these rules around stock picking, with the aim of beating this index by four to six per cent.

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06.

Buy and Sell Discipline

The BlackRock Concentrated Industrial Share Fund has a flexible buy and sell discipline in order to maintain the high quality of stocks within the fund. By setting a ‘sell price’ against each stock as they buy it, they are forced to constantly reassess stocks to ensure they will continue to provide good returns. Coupling this with five core guidelines ensures only the best makes it into the portfolio.

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07.
BEST SUITED FOR

The Ideal Investor

The BlackRock Concentrated Industrial Share Fund was designed with the typical Australian investor in mind, avoiding areas the average investor is already heavily exposed to. In particular, Australian retail investors may appreciate the diversification the fund provides. While the fund aims to succeed in the short, medium and long term, Charlie Lanchester maintains that “long term is your friend”.

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08.

Key Considerations for Investors

The fully franked dividends offered by the big four banks has attracted many Australian investors into investing heavily into them in a manner similar to Australian’s fascination with investment property. The BlackRock Concentrated Industrial Share Fund is aimed to complement such investors and provide diversification to their portfolios. The concentrated nature of the fund means it will at times differ markedly from the index

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09.

Test yourself /