DSP BlackRock World Mining Fund
-
Upload
dsp-blackrock-investment-managers-mutual-funds-india -
Category
Documents
-
view
1.500 -
download
0
description
Transcript of DSP BlackRock World Mining Fund
DSP BlackRock World Mining Fund
April 2011
2
USD 17.8 billion
Indian Investors
DSP BlackRock World Mining Fund: Product Structure
Source: BlackRock; AUM of BGF – WMF as on March 31, 2010
BlackRock Global Funds (BGF)World Mining Fund
3
BlackRock Global Funds (BGF)World Mining FundSectors in which the fund typically invests in:
• Iron Ore• Copper• Aluminum• Energy Coal• Metallurgical Coal• Gold• Nickel• Platinum• Diamonds
Sectoral Diversification
4
Evolution of World GDP
*Purchasing power parity Sources: Angus Maddison, University of Groningen; The Economist
0
10
20
30
40
50
60
70
1 1000 1500 1600 1700 1820 1870 1900 1913 1940 1970 2008
% of
Tot
al,
1990
$ a
t PP
P*
China India Japan US France Germany Italy Britain
A History of World GDP
5
Mining equity markets in 2011
Mining equity performance YTD
60
65
70
75
80
85
90
95
100
105
110
115
31-D
ec-10
07-Ja
n-11
14-Ja
n-11
21-Ja
n-11
28-Ja
n-11
04-Feb
-11
11-Feb
-11
18-Feb
-11
25-Feb
-11
04-M
ar-11
11-M
ar-11
18-M
ar-11
25-M
ar-11
01-A
pr-11
08-A
pr-11
Reb
ased
to 1
00
HSBC Global Mining IndexHSBC Global Mining (Base Metals)HSBC Global Mining (Coal)HSBC Global Mining (Diversified)HSBC Global Mining (Gold)HSBC Global Mining (Uranium)
HSBC Global Mining Index: 3.2% Japanese earthquake
6
0
50
100
150
200
250
2007 2008 2009 2010* 2011* 2012* 2013* 2014* 2015*
Mill
ion
Tonn
es
China
India
56%46%
35% 32% 33% 29% 25%
35%
22%26% 31% 27%
18% 37%
9%32% 39% 37% 40%
53%39%
0%
20%
40%
60%
80%
100%
Crude oil Nickel Aluminium Copper Zinc Iron ore Steel
% o
f glo
bal d
eman
d
OECD EM ex China China
0
200
400
600
800
1,000
1,200
2007
2008
2009
2010
*
2011
*
2012
*
Mill
ion
Tonn
es
0%
20%
40%
60%
80%
100%
0
4,000
8,000
12,000
16,000
20,000
2007
2008
2009
2010
*
2011
*
2012
*
2013
*
Thou
sand
Ton
nes
0%
20%
40%
60%
80%
100%
OECD (LHS) EM ex China (LHS) China (LHS)OECD % of total EM ex China % of total China % of total
2009 regional breakdown of global commodity demand Copper Demand
Chinese and Indian Thermal Coal Imports Sea-borne Iron Ore Demand
Demand-side dynamics
Global demand growth driven by China AND other Emerging Market economiesSource: Deutsche Bank, March 2011. *Forecast data
7
Supply-side dynamics
Supply constrained by:
• Average mined grades falling
• Infrastructure challenges
• Geopolitical challenges
• Discovery rates falling
• Shortage of skilled labour
• Long lead times on equipment
Open-pit production
74%
60%
2009 2025E
Challenges to forecast copper production: Increasing depth, decreasing grade and higher risk
Average grade
1.17%
1.03%
2009 2025E
Production capacity in low risk regions88%
80%
2009 2025ESource: Rio Tinto, October 2009, based on Brook Hunt data
Challenges to forecast bulk commodity production: Growth constrained by congestion on roads, rail and at ports
Source: BBC, Queensland National Rail, Internal
8
Short term events driving spot prices higher
• Markets are tight across a number of key commodities
• Short term disruptions such as flooding and snow have magnified impact on prices
• So far in 2011 this has impacted – coking coal, – iron ore – thermal coal (to a lesser extent)
Flooding in Queensland impacting coking coal operations
Snow impacting supply routes in Canada
9
20406080
100120140160180200220
Jan
04A
pr 0
4Ju
l 04
Nov
04
Feb
05Ju
n 05
Sep
05
Jan
06A
pr 0
6A
ug 0
6N
ov 0
6M
ar 0
7Ju
n 07
Sep
07
Jan
08A
pr 0
8A
ug 0
8N
ov 0
8M
ar 0
9Ju
n 09
Oct
09
Jan
10M
ay 1
0A
ug 1
0D
ec 1
0M
ar 1
1
$/to
nne
fob
Richards Bay FOB Newcastle FOB
Coal prices
• BHP Billiton have departed from annual benchmark for coking coal and settled at US$225/t for Q3 2010
• High quality seaborne product sufficiently differentiated from low quality Chinese supply
• Early settlement of thermal coal contracts shows potential of bulk producers to exert pricing power
Source: Macquarie data as at 1st April 2011 Source: Macquarie data as at 25 March 2011
Coking Coal Pricing Thermal Coal Pricing
0
50100
150
200250
300
350400
450
Jan
03Ap
r 03
Aug
03N
ov 0
3Fe
b 04
Jun
04Se
p 04
Jan
05Ap
r 05
Aug
05N
ov 0
5M
ar 0
6Ju
n 06
Sep
06Ja
n 07
Apr 0
7Au
g 07
Nov
07
Mar
08
Jun
08O
ct 0
8Ja
n 09
May
09
Aug
09N
ov 0
9M
ar 1
0Ju
n 10
Oct
10
Jan
11
$/to
nne
fob
Spot Coking Coal Price Contract Coking Coal Price Chinese Domestic HCC
10
-
20
40
60
80
100
120
140
160
180
200
0 50 100
150
200
250
300
350
400
450
500
550
600
650
700
750
800
850
900
950
1000
1050
1100
1150
1200
1250
1300
1350
1400
1450
Volume (mt)
CIF
Cos
t Chi
na ($
/t)
Vale Rio Tinto BHP Billiton FMGOther Australia Other Brazil India AfricaChina Other
20
40
60
80
100
120
140
160
180
200
220
Jan
03M
ay 0
3Se
pJa
n 04
May
04
Sep
Jan
05Ju
n 05
Oct
05
Feb
06Ju
n 06
Oct
06
Feb
07Ju
n 07
Nov
07
Mar
08
Jul 0
8N
ov 0
8M
ar 0
9Ju
l 09
Nov
09
Apr
10
Aug
10
Dec
$/to
nne
MB China CIF spot price (63.5% Fe)Australia FOB contract priceChina CFR Australia contract price equivalent
Iron ore
• Iron ore markets changing significantly with move to quarterly pricing
• This appears to be a permanent change though the exact mechanism for pricing is still evolving
• Provides greater level of pricing transparency
• Directly reference spot price – driven by high cost Chinese and Indian production
• Marginal costs of production for iron ore have increased by over $20 to $149
Source: CLSA data as at 25th March 2011 Source: Macquarie/The Steel Index as at end March 2011
Current Price
Iron ore pricing Supply curve to Chinese market for iron ore fines
11
Copper inventories & price Zinc inventories & price
Aluminium inventories & price Nickel inventories & price
0
200
400
600
800
1,000
1,200
Mar-00 Mar-03 Mar-06 Mar-09
Thou
sand
s of
tonn
es
0
2,000
4,000
6,000
8,000
10,000
12,000
US$
/t
LME w arehouse Inventories (t) Copper Price (US$/t)
Source: DataStream. Data as at 31ST March 2011
0
200
400
600
800
1,000
1,200
1,400
Dec-93 Dec-96 Dec-99 Dec-02 Dec-05 Dec-08
Thou
sand
s of
tonn
es
05001,0001,5002,0002,5003,0003,5004,0004,5005,000
US$
/t
LME w arehouse Inventories (t) Zinc Price (US$/t)
0500
1,0001,5002,0002,5003,0003,5004,0004,5005,000
Mar-00 Mar-03 Mar-06 Mar-09
Thou
sand
s of
tonn
es
0
500
1,000
1,500
2,000
2,500
3,000
3,500U
S$/t
LME w arehouse Inventories (t) Aluminium Price (US$/t)
020406080
100120140160180
Dec-93 Dec-96 Dec-99 Dec-02 Dec-05 Dec-08Th
ousa
nds
of to
nnes
0
10,000
20,000
30,000
40,000
50,000
60,000
US$
/t
LME w arehouse Inventories (t) Nickel Price (US$/t)
LME inventories and base metal prices
12
From Debt Mountains to Cash Piles
• Mining sector forecast to be in a net cash position by the end of 2011
• First time this has been the case in recent history
-150,000
-100,000
-50,000
0
50,000
100,000
2005 2006 2007 2008 2009 2010e 2011e 2012e
US
$(bn
)
Net Cash
Source: Citigroup, October 2010
• Use of improved spending power – capex, M&A and dividends
13
0
5
10
15
20
25Ja
n-90
Jan-
91
Jan-
92
Jan-
93
Jan-
94
Jan-
95
Jan-
96
Jan-
97
Jan-
98
Jan-
99
Jan-
00
Jan-
01
Jan-
02
Jan-
03
Jan-
04
Jan-
05
Jan-
06
Jan-
07
Jan-
08
Jan-
09
Jan-
10
Jan-
11
12m
For
war
d P
E M
ultip
le
BHP Billiton Forward PE multiple Anglo American Forward PE MultipleXstrata Forward PE Multiple Rio Tinto Forward PE multiple
A New Trading Range for the Diversifieds?
• Diversified companies have been trading in a lower PE range than during the last cycle (92-02)
• Mining stocks trading at a discount compared to historic levels
Source: DataStream. Weekly data to 4th April 2011.
14
Corporate events
2010 a record year for M&A, 2011 looks set to follow suit
• In 2010, 186 deals worth US$134 billion that were either completed or
live at the end of the year
• Top sectors for M&A: gold, coal and iron ore
• So far in 2011:
– Rio Tinto ups bid for Riversdale to US$4bn
– Equinox announces a US$4.9 bn hostile bid for Lundin Mining
– BHP Billiton buys shale gas assets from Chesapeake Energy for
US$4.75 bn
– Minmetals Resources announce U$6.3bn hostile bid for Equinox
Mining sector financial strength has returned
• Dividends resumed or increased
• Gold companies initiating and/or increasing dividends
• Dividends re-instated and increased across the mining sector
– Recent examples: BHP Billiton, Rio Tinto, Xstrata, Anglo American, Teck Resources, OZ Minerals
• Special dividends announced by Freeport, Vale and Antofagasta
• Share buybacks
• Vale announced and completed US$2 billion buyback between September and November 2010
• BHP Billiton announced US$10 billion buyback
• Rio Tinto announced a $5 billion buyback
• Debt markets are open at attractive rates
• Teck refinanced high interest debt with longer dated and signficantly lower interest debt
• Rio refinanced Alcan-related US$5bn revolving credit line
15
50150250350450550650750850950
10501150
Jan-
01
Jul-0
1
Jan-
02
Jul-0
2
Jan-
03
Jul-0
3
Jan-
04
Jul-0
4
Jan-
05
Jul-0
5
Jan-
06
Jul-0
6
Jan-
07
Jul-0
7
Jan-
08
Jul-0
8
Jan-
09
Jul-0
9
Jan-
10
Jul-1
0
Jan-
11
Reb
ased
to 1
00
BGF World Mining Fund HSBC Global Mining Index MG Base Metals Index
BGF World Mining Performance
• Launched in 1997
• AUM of approx $ 17.8 bn
• Open Ended SICAV
• AAA rated – OBSR
• AA rated – S&P Fund Research
• Elite rated- Morningstar
Source: Datastream. Net Performance in USD on a NAV pricing basis with income reinvested as at end March 2011. Past performance is not necessarily indicative of future performance.
US$ YTD 2010 2009 2008 2007 2006 2005 2004
BGF World Mining Fund -1.3 29.2 108.3 -64.9 59.6 43.6 41.8 10.4
HSBC Global Mining Index -1.1 29.5 101.7 -59.0 53.7 36.1 38.9 9.9
Source: DataStream, data to 4 April 2011
16
BGF World Mining Top Ten
Stock % of Fund Geography Commodity
Rio Tinto 9.8 Global Diversified
BHP Billiton 8.3 Global Diversified
Teck Resources 6.4 Global Diversified
Freeport McMoran C&G 5.8 Indonesia Copper/ Gold
Vale 5.7 Global Diversified
Xstrata 4.6 Global Diversified
Newcrest 4.3 Australia Gold
Anglo American 3.8 Global Diversified
Impala 3.7 South Africa Platinum
First Quantum 3.3 Africa Copper
Total 55.7%
Source: Internal as at end March 2011. Indicative only and subject to change.
Source: BlackRock
Number of Holdings: 73
DSP BlackRock World Mining Fund
18
^ Benchmark = HSBC Mining Index. Note: As per the SEBI standards, for performance reporting, the “since inception” returns are calculated on Rs 10/- invested at inception. For this purpose the inception date is deemed to be the date of allotment. The ‘returns’ shown are for the Regular Plan - Growth Option. Performance in INR term.
Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments.
Absolute Return as on March 31, 2010
DSP BlackRock World Mining Fund Benchmark^
Last 1 year 19.27% 22.42%
Since Inception 18.06% 17.44%
NAV/ Index Value (Rs) 12.3106 33,723.51
Date of allotment Dec 29, 2009
DSP BlackRock World Mining Fund: Performance
19
Minimum Investment and Minimum Additional Purchase
• Regular Plan: Rs. 5000/- and Rs. 1000/- thereafter• Institutional Plan: Rs. 1 cr. and Rs. 1000/- thereafter
• Options available:
Growth(for both plans)
Dividend - Payout- Reinvest
Entry Load (both plans)
Nil
Exit Load (both plans)
For holding period: < 12 months: 1%; holding period >= 12 months: Nil
DSP BlackRock World Mining Fund: Scheme Features
Thank You
21
Investment Objective: An open ended Fund of Funds Scheme investing in international funds and the primary investment objective of the Scheme is to seek capital appreciation by investing predominantly in the units of BlackRock Global Funds – World Mining Fund (BGF – WMF). The Scheme may, at the discretion of the Investment Manager, also invest in the units of other similar overseas mutual fund schemes, which may constitute a significant part of its corpus. The Scheme may also invest a certain portion of its corpus in money market securities and/or money market/liquid schemes of DSP BlackRock Mutual Fund (Fund), in order to meet liquidity requirements from time to time. There is no assurance that the investment objective of the Scheme will be realized.Asset Allocation: 1. Units of BGF – WMF# or other similar overseas mutual fund scheme(s): 80% to 100% 2. Money market securities and/or units of money market/liquid schemes of DSP BlackRock Mutual Fund: 0% to 20%#in the shares of BGF – WMF, Undertaking for Collective Investment in Transferable Securities (UCITS) III fund.Features: SIP only in Regular Plan, SWP & STP available in each plan of the scheme. Nomination facility available, subject to applicable conditions as per the Statement of Additional Information (SAI) and Scheme Information Document (SID). Declaration of NAV on all Business Days. Redemption normally within 5 Business Days. Sale and Redemption of Units on all Business Days at Purchase Price and Redemption Price respectively. Minimum investment: Rs. 5,000/- (Reg. Plan)/Rs. 1 crore (Inst. Plan). Entry load: NIL. Exit load: Holding Period < 12 months: 1%, Holding Period >= 12 months: NIL. Investors shall bear the recurring expenses of the Scheme in addition to the expenses of the underlying scheme(s) in which the Scheme will make investment.Statutory Details: DSP BlackRock Mutual Fund was set up as a Trust and the settlors/sponsors are DSP ADIKO Holdings Pvt. Ltd. & DSP HMK Holdings Pvt. Ltd. (collectively) and BlackRock Inc. (Combined liability restricted to Rs. 1 lakh). Trustee: DSP BlackRock Trustee Company Pvt. Ltd. Investment Manager: DSP BlackRock Investment Managers Pvt. Ltd. Risk Factors: Mutual funds, like securities investments, are subject to market and other risks and there can be no assurance that the Scheme’s objectives will be achieved. As with any investment in securities, the NAV of Units issued under the Scheme can go up or down depending on the factors and forces affecting capital markets. Past performance of the sponsor/AMC/mutual fund does not indicate the future performance of the Scheme. Investors in the Scheme are not being offered a guaranteed or assured rate of return. Each Scheme/Plan is required to have (i) minimum 20 investors and (ii) no single investor holding>25% of corpus. If the aforesaid point (i) is not fulfilled within the prescribed time, the Scheme/Plan concerned will be wound up and in case of breach of the aforesaid point (ii) at the end of the prescribed period, the investor's holding in excess of 25% of the corpus will be redeemed as per SEBI guidelines. If the SEBI limits for overseas investments allowed to the Fund are expected to be exceeded, subscriptions and switches into the Scheme may be temporarily suspended/SIP/STP into the Scheme may be terminated. DSPBRWMF is the name of the Scheme and does not in any manner indicate the quality of the Scheme, its future prospects or returns. For scheme specific risk factors, please refer the Scheme Information Document. For more details, please refer the Key Information Memorandum cum Application Forms, which are available on the website, www.dspblackrock.com, and at the ISCs/Distributors. Please read the SID and SAI carefully before investing.
Disclaimer
Appendix
23
BlackRock’s Natural Resources team, London
Agriculture
As at October 2010
Richard DavisCatherine RawClive Burstow
Tom Holl
Poppy AllonbyAlastair Bishop
Joshua Freedman
BlackRock Offices worldwide250+ equity analysts, 300+ fixed income analysts
BlackRock Solutions & Risk Management1,800+ Professionals
Evy Hambro & Robin BatchelorJoint Chief Investment Officers
Portfolio Manager AssistantsSimon McClure &
Greg Bullock
Mining & Gold Energy & New Energy
Richard Desmond Davis Cheung
Product SpecialistsMalcolm Smith
Fiona Stubbs & Alex Ball
24
Poppy Allonby, CFA, director and portfolio manager, is responsible for co-managing the Team’s energy and alternative energy portfolios. Ms. Allonby's service with the firm dates back to 2000, including her years with Merrill Lynch Investment Managers (MLIM) which merged with BlackRock in 2006. Prior to working on the Natural Resources team, Ms. Allonby was an analyst on the US Equity Team where she was responsible for the basic materials, utilities and energy sectors.
Ms. Allonby earned a BSc degree in physics from the Imperial College, London in 2000.
Alex Ball, analyst and product specialist for the Natural Resources Equity products, provides a link between the investment teams and the account managers. Mr Ball joined BlackRock in 2009 as part of the graduate scheme. Prior to working on the Natural Resources team, he was a member of the Proprietary Alpha Strategies team.
Mr Ball earned a BA degree, in english literature and language from Oxford University in 2009.
Robin Batchelor, managing director and portfolio manager, joined the Natural Resources Team in London in 1996 and worked initially on the gold and mining funds. Mr. Batchelor subsequently developed the Team’s energy capability and began managing dedicated energy portfolios in January 1999. Mr. Batchelor is responsible for both traditional oil and gas investment funds as well as alternative energy portfolios. He is also joint chief investment officer of the BlackRock Natural Resources Team.
Mr. Batchelor earned his BSc in applied geology from Glasgow University and Colorado State University and his MSc in investment analysis from Stirling University. In 2001, Mr. Batchelor was named "One of the Top Twenty Fund Managers in the World" by Forbes magazine.
Alastair Bishop, director and portfolio manager is responsible for covering the energy and alternative energy sectors. Mr. Bishop joined BlackRock in 2010 from Piper Jaffray where he was a Senior Research Analyst covering the Clean Technology industry. Prior to joining Piper Jaffray in 2009, he covered the European Renewable Energy and Industrial sectors for 8 years at Dresdner Kleinwort Investment Bank.
Mr. Bishop earned a BSc degree in Economics from the University of Nottingham in 2001.
BlackRock Natural Resources team biographies (in alphabetical order)
25
Team biographies (contd.)
Clive Burstow, vice president and portfolio manager, is responsible for covering the gold and mining sectors. Mr. Burstow joined BlackRock in 2010 from Alliance Bernstein where he was a EMEA Materials Analyst and Growth equities Precious Metals analyst. Prior to joining Alliance Bernstein in 2007, he was with Baring Asset Management as lead analyst for the Global Resources Fund.
Mr. Burstow earned a BEng degree in mining from the Camborne School of Mines in 1993.
Desmond Cheung, director and portfolio manager, is responsible for covering the agriculture sector and China. Prior to joining BlackRock in 2007, Mr. Cheung spent five years at Hang Seng Bank Ltd, a major subsidiary of HSBC Group in Hong Kong, as a credit and relationship manager specializing in financing metal companies in the Greater China region.
Mr. Cheung earned a BA degree in accounting from the Chinese University of Hong Kong in 2000 and an MBA degree from Judge Business School, Cambridge University in 2006.
Richard Davis, managing director and portfolio manager, is responsible for managing a range of natural resources portfolios, including agriculture, mining, gold and income strategies. Mr. Davis' service with the firm dates back to 1994, including his years with Mercury Asset Management and Merrill Lynch Investment Managers (MLIM). Prior to joining MLIM, he worked as a geologist for three years in Ireland and worked on mineral exploration and resource evaluation projects in base metals, gold and diamonds.
Mr. Davis earned a BA degree in geology from Trinity College, Dublin in 1989 and an MSc degree in mineral exploration from Imperial College, London in 1990.
26
Team biographies (contd.)
Joshua Freedman, associate and portfolio manager, is responsible for covering the global energy and energy technology sectors. Mr Freedman's service with the firm dates back to 2005, including his time with Merrill Lynch Investment Managers (MLIM). Prior to joining the team, he worked on MLIM's Emerging Europe team.
Mr. Freedman earned a BA degree in engineering from Downing College, Cambridge.
Evy Hambro, managing director and portfolio manager, is responsible for the management of several gold and mining portfolios and is joint chief investment officer of the BlackRock Natural Resources Team. Mr. Hambro's service with the firm dates back to 1994, including his years with Mercury Asset Management and Merrill Lynch Investment Managers (MLIM).
Mr. Hambro earned a BSc degree in marketing, from Newcastle University.
Thomas Holl, CFA, associate and portfolio manager, is responsible for covering the gold and mining sectors. Mr. Holl moved to his current role in 2008. His service with the firm dates back to 2005, including his time with Merrill Lynch Investment Managers (MLIM). At MLIM, Mr. Holl was a member of the Global Equity Team and the Real Estate Team as a member of the graduate training program.
Mr. Holl earned a BA degree in Land Economy from Cambridge University in 2006.
27
Team biographies (contd.)
Catherine Raw, CFA, director and portfolio manager, is responsible for covering the gold and mining sectors. Ms. Raw's service with the firm dates back to 2003, including her years with Merrill Lynch Investment Managers. Prior to joining MLIM, she worked at Anglo American Plc. in London and Johannesburg and at Boliden's Laisvall mine in Sweden as a geological field assistant underground.
Ms. Raw earned a MA degree in Natural Sciences from Downing College, Cambridge University in 2002 and an MSc degree in Mineral Project Appraisal from Imperial College, London in 2003.
Malcolm Smith, vice president and product specialist, is responsible for all product specialist functions for the Natural Resources Equity products. Mr. Smith's service with the firm dates to 2005, including his time with Merrill Lynch Investment Managers (MLIM). At MLIM, he worked within the retail business with a particular focus upon the Luxembourg and UK unit trust fund ranges. He moved to his current role with the Natural Resources Team in 2006. Prior to joining MLIM, he worked on the European equity team of a global multi-manager.
Mr. Smith earned an MA degree in accountancy from Aberdeen University in 2004.
Fiona Stubbs, associate and product specialist for the Natural Resources Equity products providing a link between the investment teams and account managers. Ms Stubbs’ time with the firm dates back to 2007. Prior to joining the Natural Resources team she worked in Global Consultant Relations with a number of assigned investment consultancies alongside their lead relationship managers, engaging in a variety of activities designed to support consultants' work with mutual and potential clients.
Prior to joining BlackRock in 2007, Miss Stubbs earned a BSc in Biology at Oxford Brookes University in 2002.
28
• Risk management is a core component of Blackrock’s culture
• Over 380 individuals provide portfolio managers with in-house risk systems and models
• BRS and RQA partner with the Natural Resources Team to improve investment performance
• Open architecture provides transparency and facilitates communication
Understanding and controlling risk in a metals & mining portfolio
Stock Ideas
High ConvictionPortfolio
• Use investment experience to capture additional, sector specific risk factors
For example:• Geological risk• Technical hurdles • Political stability• Management track-record
BlackRock Solutions (BRS) Risk and Quantitative
Analysis (RQA)
BlackRock Natural Resources Team
Portfolio Construction
Risk is:DIVERSIFIEDDELIBERATE
SCALED
29
Understanding and controlling risk in the a metals & mining portfolio
Use an in-house interactive desktop trading and risk system (Aladdin) that provides:• Pre-trade position compliance modelling
• Impact of adding or removing stock positions on the broader portfolio
Source: BlackRock, The Aladdin system including Green Package and Impact