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BlackRock Australian Share - Change of objective and strategy - September 2012

From 1 October 2012, the investment objective and strategy for the BlackRock Australian Share option will change. The revised strategy will use BlackRock's scientific quantitative investment approach.

The option will maintain a similar risk / return profile without introducing new risk or additional cost to the portfolio.

The management cost for the option will also not change.

Further information regarding the new fund objective and strategy can be found in the table below.

  Current strategy New strategy

Objective

To achieve capital growth over the long term through investment in Australian Shares and other securities and to provide investors with some tax-effective income through the distribution of franking credits. The option aims to outperform the benchmark over rolling 5 year periods.

Aims to outperform the benchmark by exposure to long positions in Australian equities. Aims to return 2-3% per annum above benchmark over rolling 3 year periods.

Strategy

The option invests opportunistically in perceived value-adding investment ideas, or 'insights'. BlackRock draws on a broad spectrum of investment expertise to identify these opportunities and capitalise on them. Insights may be found on a number of different levels, for example within a company division, at the stock level or among a group of stocks. The identification of investment insights is a research driven process. The options focus on two broad areas to generate insights. These include the identification of inconsistencies between stock prices & consensus expectations, and the application of substantive focus on areas of uncertainty to develop advantage.

The strategy is designed to be highly diversified, providing broad exposure to the Australian equity market. Rather than making large, inherently risky investments in a few individual stocks, the option makes smaller investments across many individual stocks. This process diversifies active risk across a broad spectrum of stocks in a variety of industries and is designed to provide more consistent active returns over time.

Benchmark

S&P/ASX 200 Accumulation Index

S&P/ASX 300 Accumulation Index

Target tracking error

2.5-3%

1.5-2%


We recommend you speak to your financial adviser if you have any questions or call us on 13 13 36, 8am to 7pm, Sydney time.

Disclaimer
Colonial First State Investments Limited ABN 98 002 348 352, AFS Licence 232468 (Colonial First State) is the issuer of super, pension and investment products. This document may include general advice but does not take into account your individual objectives, financial situation or needs. You should read the relevant Product Disclosure Statement (PDS) carefully and assess whether the information is appropriate for you and consider talking to a financial adviser before making an investment decision. A PDS for Colonial First State’s products are available at colonialfirststate.com.au or by calling us on 13 13 36.