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The BlackRock Wholesale Balanced Fund is one of BlackRock’s longest standing strategies with a 25-year track history. It has consistently delivered top quartile performance vs. comparable funds in Australia.¹
Following a recent review, we have decided to implement a number of enhancements we believe will improve outcomes for investors, including a reduction in management fee on the fund to a competitive 0.85% p.a. (from the current fee of 0.95% p.a.).
We have also renamed the fund to BlackRock Tactical Growth Fund which we believe better reflects the dynamic nature of the fund’s investment approach.
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Ron Montgomery, Portfolio Manager, Multi-Asset Strategies Group, BlackRock
The Fund’s Strategic Asset Allocation (SAA)* will also be adjusted, however, the approximate 70:30 split between growth and defensive assets remains unchanged. The enhancements include:
- Additional flexibility for the portfolio managers to manage risk during periods of market extremes
- A more diversified approach to strategic asset allocation, including an increasing exposure to international growth assets
- Increased use of tactical asset allocation to take advantage of market conditions
* Further information on asset allocation and what the fund invests in can be found in the PDS.
Strategic asset allocation changes
| Asset Class | Previous SAA Weights2 | New SAA Weights3 | Change |
|---|---|---|---|
| Australian Equities | 32.0% | 30.0% | -2.00% |
| Australian Listed Property | 5.50% | 0.00% | -5.50% |
| International Equities (Unhedged) | 21.05% | 18.0% | -3.05% |
| International Equities (Hedged)4 | 7.70% | 11.0% | 3.30% |
| International Listed Property (Unhedged) | 0.00% | 6.00% | 6.00% |
| International Listed Property (Hedged)4 | 2.00% | 0.00% | -2.00% |
| Global Listed Infrastructure (Unhedged) | 0.00% | 3.00% | 3.00% |
| Emerging Market Equities (Unhedged) | 0.00% | 3.00% | 3.00% |
| Total growth assets | 68.25% | 71.00% | 2.75% |
| Australian Fixed Income | 14.0% | 15.0% | 1.00% |
| International Fixed Income (Hedged)4 | 8.00% | 6.0% | -2.00% |
| Emerging Markets USD Bonds (Hedged)4 | 0.00% | 3.00% | 3.00% |
| Cash5 | 9.75% | 5.00% | -4.75% |
| Total defensive assets | 31.75% | 29.00% | -2.75% |
| Total | 100% | 100% |
1 Source: Morningstar, June 2017
2 Prior to 31 August 2017
3 As of 31 August 2017
4 100% hedged in AUD
5 The Fund’s cash allocation may include exposure to underlying funds through which active asset allocations are made.*
This is a summary of the features of the Fund. Please refer to the PDS for more information and the risks involved in investing in the Fund. Further details of the changes to the Fund can be downloaded in the Further Information section below.
If your investment is via a platform, please contact your platform provider for any further questions regarding fees.
PERFORMANCE DATA
Performance figures represent past performance. Past performance is not indicative of future performance and current performance may be higher or lower than the performance shown. Net performance figures are calculated after fund management fees and expenses, and assume reinvestment of distributions. Gross performance figures are calculated gross of ongoing fees and expenses. Unless otherwise stated, performance for periods greater than one year is annualised and performance calculated to the last business day of the month. Unless otherwise stated, iShares ETF net performance is calculated on a NAV price basis, while net performance for all other funds is calculated on an exit-to-exit price basis.
IMPORTANT INFORMATION
Issued by BlackRock Investment Management (Australia) Limited ABN 13 006 165 975, AFSL 230 523 (BIMAL).
This material provides general information only and does not take into account your individual objectives, financial situation, needs or circumstances. Before making any investment decision, you should therefore assess whether the material is appropriate for you and obtain financial advice tailored to you having regard to your individual objectives, financial situation, needs and circumstances.
This material is not a securities recommendation or an offer or solicitation with respect to the purchase or sale of any securities in any jurisdiction.
BIMAL is the responsible entity and issuer of units in the Australian domiciled managed investment schemes referred to in this material, including the Australian domiciled iShares ETFs. BIMAL is the local agent and intermediary for non-Australian domiciled iShares ETFs referred to in this material that are quoted on ASX and are issued by iShares, Inc. ARBN 125632 279 formed in Maryland, USA; and iShares Trust ARBN 125 632 411 organised in Delaware, USA (International iShares ETFs). BlackRock Fund Advisors (BFA) serves as an advisor to the International iShares ETFs, which are registered with the United States Securities and Exchange Commission under the Investment Company Act of 1940. BFA is a subsidiary of BlackRock Institutional Trust Company, N.A. (BTC). BTC is a wholly-owned subsidiary of BlackRock, Inc.®.
Any potential investor should consider the latest product disclosure statement, prospectus or other offer document (Offer Documents) before deciding whether to acquire, or continue to hold, an investment in any BlackRock fund. Offer Documents can be obtained by contacting the BIMAL Client Services Centre on 1300 366 100. In some instances Offer Documents are also available on this website.
An iShares ETF is not sponsored, endorsed, issued, sold or promoted by the provider of the index which a particular iShares ETF seeks to track. No index provider makes any representation regarding the advisability of investing in the iShares ETFs. Further information on the index providers can be found in the BIMAL website terms and conditions.
BIMAL, its officers, employees and agents believe that the information in this material and the sources on which the information is based (which may be sourced from third parties) are correct as at the date of publication. While every care has been taken in the preparation of this material, no warranty of accuracy or reliability is given and no responsibility for this information is accepted by BIMAL, its officers, employees or agents. Except where contrary to law, BIMAL excludes all liability for this information.
Any investment is subject to investment risk, including delays on the payment of withdrawal proceeds and the loss of income or the principal invested. While any forecasts, estimates and opinions in this material are made on a reasonable basis, actual future results and operations may differ materially from the forecasts, estimates and opinions set out in this material. No guarantee as to the repayment of capital or the performance of any product or rate of return referred to in this material is made by BIMAL or any entity in the BlackRock group of companies.
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