The Fund seeks to achieve its investment objective by implementing tactical asset allocation strategies. The strategies adopted are thematic, concentrating on exploiting trends, likely developments and mis-pricing in global asset markets. The strategies adopted encompass equity, cash, fixed interest, property, commodity and currency markets.

Trades executed to implement these strategies may be based on an expectation of the direction of a particular market or focus on relative values between and within regions, asset classes, sectors, currencies and instruments or some combination thereof.

The Fund may invest in any derivative or physical instrument or asset from any asset class and/or currency subject to consistency with its risk budget. Typically the Fund is physically invested in cash and short-term fixed interest securities with derivative overlays used to achieve exposures to desired positions in markets. At times physical assets or instruments may be used to give effect to the Fund’s strategies.

The choice between types of instruments is dictated by the need to execute strategies in a targeted, cost efficient and risk controlled manner. In the management of the Fund we make extensive use of over the counter swaps, options, currency forwards and futures.

The Fund is managed by our highly experienced Australian Asset Allocation Team and draws upon the expertise of BlackRock’s asset allocation and investment teams domestically and globally.

Fund risks are monitored by our Australian Risk and Quantitative Analysis Team (RQA). The RQA team is independent of BlackRock’s Investment management teams and provides fund guidance and advice to those teams.

The Fund should be considered by investors seeking the potential for high absolute returns, or who are seeking exposure to asset allocation strategies. Investors should have a longer-term investment horizon and be prepared to accept the risk of volatility in global markets.