BlackRock Advantage Intl Equity Fund is an Managed Funds investment product that is benchmarked against Developed -World Index and sits inside the Foreign Equity - Large Quantitative Index. Think of a benchmark as a standard where investment performance can be measured. Typically, market indices like the ASX200 and market-segment stock indexes are used for this purpose. The BlackRock Advantage Intl Equity Fund has Assets Under Management of 655.57 M with a management fee of 0.5%, a performance fee of 0.00% and a buy/sell spread fee of 0.36%.
The recent investment performance of the investment product shows that the BlackRock Advantage Intl Equity Fund has returned 2.88% in the last month. The previous three years have returned 13.11% annualised and 11.98% each year since inception, which is when the BlackRock Advantage Intl Equity Fund first started.
There are many ways that the risk of an investment product can be measured, and each measurement provides a different insight into the risk present. They can be used on their own or together to perform a risk assessment before investing, but when comparing investments, it is common to compare like for like risk measurements to determine which investment holds the most risk. Since BlackRock Advantage Intl Equity Fund first started, the Sharpe ratio is NA with an annualised volatility of 11.98%. The maximum drawdown of the investment product in the last 12 months is -4.08% and -43.82% since inception. The maximum drawdown is defined as the high-to-low decline of an investment during a particular time period.
Relative performance is what an asset achieves over a period of time compared to similar investments or its peers. Relative return is a measure of the asset's performance compared to the return to the other investment. The BlackRock Advantage Intl Equity Fund has a 12-month excess return when compared to the Foreign Equity - Large Quantitative Index of 3.33% and 0.73% since inception.
Alpha is an investing term used to measure an investment's outperformance relative to a market benchmark or peer investment. Alpha describes the excess return generated when compared to peer investment. BlackRock Advantage Intl Equity Fund has produced Alpha over the Foreign Equity - Large Quantitative Index of NA% in the last 12 months and NA% since inception.
For a full list of investment products in the Foreign Equity - Large Quantitative Index category, you can click here for the Peer Investment Report.
BlackRock Advantage Intl Equity Fund has a correlation coefficient of 0.99 and a beta of 1.13 when compared to the Foreign Equity - Large Quantitative Index. Correlation measures how similarly two investments move in relation to one another. This establishes a 'correlation coefficient', which has a value between -1.0 and +1.0. A 100% correlation between two investments means that the correlation coefficient is +1. Beta in investments measures how much the price moves relative to the broader market over a period of time. If the investment moves more than the broader market, it has a beta above 1.0. If it moves less than the broader market, then the beta is less than 1.0. Investments with a high beta tend to carry more risk but have the potential to deliver higher returns.
For a full quantitative report on BlackRock Advantage Intl Equity Fund and its peer investments, you can click here for the Peer Investment Report.
For a full quantitative report on BlackRock Advantage Intl Equity Fund compared to the Developed -World Index, you can click here.
To sort and compare the BlackRock Advantage Intl Equity Fund financial metrics, please refer to the table above.
This investment product is in the process of being independently verified by SMSF Mate. Once we have verified the investment product, you will be able to find more information here.
If you or your self managed super fund would like to invest in the BlackRock Advantage Intl Equity Fund please contact PO Box N43, Grosvenor Place, Sydney NSW 1220 via phone 02 9272 2200 or via email ishares.australia@blackrock.com.
If you would like to get in contact with the BlackRock Advantage Intl Equity Fund manager, please call 02 9272 2200.
SMSF Mate does not receive commissions or kickbacks from the BlackRock Advantage Intl Equity Fund. All data and commentary for this fund is provided free of charge for our readers general information.
The portfolio outperformed in July, driven by Themes while Fundamentals and Sentiment finished flat.
Across Macro Themes, underweights across defensive parts of the market such as Healthcare, Telecom, Utilities, and overweights across cyclical parts such as Energy were the top driver of portfolio returns along the industry dimension. Underweights in the Financials industries particularly Diversified Financials and Banks hurt portfolios as the quarterly earnings season showed resilience across this segment of the market post SVB crisis. Exposure to AI theme which was one of the key drivers of portfolio performance over Q2 continued be net positive over July.
Fundamentals finished the month flat but positive. Value signals were the top performer as market optimism around a goldilocks scenario increased over the month. While the aggregate Quality bucket outperformed for the month, there was dispersion across this set of signals. Those that are tilted towards low risks struggled as optimistic investors favoured high-risk names. On the other hand, quality signals focused on profitability continued their positive streak.
ESG signals struggled especially those that have a negative tilt towards traditional oil companies as oil prices made a recovery through the month following falling concerns around demand and increased probability of a soft-landing.
The Sentiment complex also finished flat but negative. Experiencing a reversal from last month, measures tracking mobile app usage and conference calls were among the bottom performers.
The strategy portfolio outperformed in the second quarter 2023. Sentiment and Themes drove positive performance while Fundamentals were flat.
As the market breadth broadened in June there was a rebound in performance. This was led by bottom-up Sentiment insights. Faster moving insights using NLP text analysis, online sales and web traffic were among the top performers.
Macro Themes performance was mixed during the quarter but finished positive. On one hand, strongest gains across the macro insights were centred around signals focused on more granular themes such as AI beneficiaries, and stocks with adverse exposure to the challenges across the US banking industry and commercial real estate. However, pro-inflation/defensive themes which were winners over 2022 and industry selection continued to struggle for traction against frequent rotation in leadership, most notably in Health Care.
Within Fundamentals, traditional valuation and anti-growth signals which were amongst the top performing signals in 2022 struggled during this period; underperforming earlier in the quarter before recovering through June. Quality measures evaluating companies’ financing were also additive over the period while ESG insights struggled as investors focused on macro dynamics and AI.
The MSCI World Ex Australia Index gained 1.2% in unhedged AUD terms and declined 0.2% in fully hedged to AUD terms in May 2023. Most major asset classes declined in May as US debt ceiling negotiations dominated headlines. Global equities, as measured by the MSCI World Ex Australia Index (hedged), were down 0.2%, while the unhedged index finished the month up 1.2% as currency moves offset the decline in international share prices. Technology stocks were a positive outlier in May buoyed by upbeat sentiment around generative artificial intelligence, which prevented the broader equity index from falling further. Developed Markets outperformed their Emerging Market counterparts, with divergences observed across geographies and sectors. Fixed Income markets, as represented by the Bloomberg Barclays Global Aggregate Index (hedged), also closed the month down 0.5%.
The strategy portfolio underperformed in May, with most insight groups negative. Sentiment led the underperformance for the month, specifically the machine learned complex. Online sales, web traffic and brand sentiment contributed positively but not enough to offset losses elsewhere. Within Value, signals that were the top performers over 2022 such as long-term reversal and anti-growth struggled the most. Within the Quality suite, contrarian quality signals led the underperformance of the fundamentals complex. Across Macro, positioning in energy, pharma, and food producers where the portfolios are overweight were amongst the top contributors to negative performance over the month. All of these are pro-inflation/ defensive themes which were winners over 2022 and drove positive fund performance last year. Another area that was problematic over the month was positioning within the semiconductor industry
The MSCI World Ex Australia Index gained 3.16% in unhedged AUD terms and 1.64% in fully hedged to AUD terms in April 2023. Financial markets were relatively calm over April despite the uncertain macroeconomic outlook.
Global equities, as measured by the MSCI World Index, increased by 3.1% over the month in Australian dollar terms as investor sentiment held steady. Developed Markets outperformed their Emerging Market counterparts. Fixed Income markets, as represented by the Bloomberg Barclays Global Aggregate Index (hedged), remained relatively volatile but also closed the month in positive territory up 0.4%.
Overall, the model ended the quarter in the positive territory after a negative start to the year. Macro Thematic and Sentiment insights regained traction through the quarter. On the other hand, Fundamental signals finished the quarter negative. A sharp rotation in market leadership was observed over the opening weeks of 2023 and the portfolio retained exposure to several 2022 winning macro trades that detracted from performance such as an overweight in Energy, Healthcare and Staples. However, Macro insights regained traction over the remainder of the quarter with stubbornly hawkish central bank rhetoric and renewed turmoil in the banking sector re-igniting growth concerns. The stock selection across IT also ended up contributing to performance. The Sentiment complex, along with the Macro Thematic insights, emerged as the dominant driver of performance following the challenging start of the year. Proprietary measures of momentum detracted but suffered a shallower drawdown than traditional insights. For the remainder of the quarter, a strong recovery in performance from bottom-up measures such as broker, management and hedge fund sentiment added to performance as investors refocused on forward looking measures of sentiment. Within the Fundamental signal complex, Value signals were the worst performers mainly due to their positioning in Financials. Quality signals also struggled during the quarter. Specifically, contrarian quality strategies tracking levels of equity dilution were among the main detractors.
The portfolio generated a small outperformance to the benchmark, primarily attributable to positive Sentiment signals. In contrast to the previous month, Quality signals that measure firms’ capital financing were among the weakest performing signals during the period. Along the ESG dimension, results were mixed with signals tracking carbon commitments showing negative performance and human capital corporate culture measures contributing positively. Within the Value complex, signals observing balance sheet ratios performed well while measures of fundamental value focused on short term mean reversion detracted. Within Sentiment, several measures of forward-looking momentum recovered January losses. These included insights designed to track the sentiment of analysts and company management. Additionally, a signal evaluating product ranking among online retailers was among the top contributors.
However, a signal tracking mobile app usage detracted from performance. Macro Tactical signals had positioned the portfolio for a continuation of the softer inflation/macro landing which had played out over the turn of the year. However, February saw positioning from these insights generally run against the grain of a re-emerging inflationary impulse. Notably, poor performance from normally inflation defensive US Healthcare stocks provided a further data-point suggesting some level of disconnect between equity and fixed income markets. Additionally, an overweight position in Canadian Energy stocks represented a pro-inflation stance which, more intuitively, failed to protect the portfolio.
The MSCI World Ex Australia Index gained 3.95% in unhedged AUD terms and 7.17% in fully hedged to AUD terms in Q4 2022. Major asset classes rose over the final quarter of 2022, although growing recession fears saw sentiment wane in December. Global equities, as measured by the MSCI World Index, increased by 3.9% over Q4 in Australian dollar terms, supported by the unwinding of China’s zero-COVID policy and softer inflation data. Emerging Markets outperformed their Developed Market counterparts. For the full year, global equities remain in negative territory at -12.5%. Fixed Income markets, as represented by the Bloomberg Barclays Global Aggregate Index (hedged) gained 0.6% over the quarter after suffering sharp losses earlier in the year.
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