Newspaper icon
The latest issue of Financial Standard now available as an e-newspaper

BlackRock rejigs Aussie shares fund

BlackRock is changing the name and fees for the BlackRock Concentrated Industrial Shares strategy.

Effective June 1, the fund was renamed to BlackRock High Conviction Australian Equity Fund. The strategy has about $700 million in total assets, of which about $200 million are in the D class.

BlackRock also dropped the feed for its D class (the platform class) from 85bps to 70bps per year. The performance fee remains the same but will now be charged on net (of management fees) returns rather than on gross returns.

The fund is managed by Charles Lanchester, Madeleine Beaumont and Sam Theodore.

About a quarter of the strategy's assets are invested in consumer discretionary stocks including pureplay e-commerce player Redbubble.

Industrials are the second-highest sector exposure, accounting for 12.9% of the fund.

The strategy has returned 46.5% in the year ending April, to the S&P/ASX 300's 31.6% over the same period.

It has also enhanced its quality filters including management, profitability, debt, business and sustainability.

From June 1, the fund is also formally excluding sectors including tobacco producers, controversial weapons, thermal coal (greater than 5% revenue from production and power generation), oil sands (greater than 5% revenue from production), nuclear weapons, and oil and gas. The managers typically excluded these sectors from their investments previously.

Read more: BlackRocBlackRock Concentrated Industrial SharesCharles LanchesterMadeleine BeaumontSam Theodore