Learn how to navigate the changing equity landscape

Learnhowtonavigate
Thechangingequitylandscape
Presented by
Charlie Lanchester
Portfolio Manager
BlackRock
18 July 2019

| netwealth2
1 CPD point available
• CPD details will be
included in the post-
webinar email
This webinar is being
recorded
• Slides will be sent to you
after the webinar via email
Enter your questions in the
chat
• We’ll get to them at the
end of the webinar
Posting to social?
• Make sure to use
#netwealthinvest or tweet
@netwealthInvest
Housekeeping

| netwealth3
This webinar and information has been prepared and issued by Netwealth Investments Limited (Netwealth), ABN 85 090
569 109, AFSL 230975. It contains factual information and general financial product advice only and has been prepared
without taking into account the objectives, financial situation or needs of any individual. The information provided is not
intended to be a substitute for professional financial product advice and you should determine its appropriateness having
regard to you or your client’s particular circumstances. The relevant disclosure document should be obtained from
Netwealth and considered before deciding whether to acquire, dispose of, or to continue to hold, an investment in any
Netwealth product.
While all care has been taken in the preparation of this document (using sources believed to be reliable and accurate), no
person, including Netwealth, or any other member of the Netwealth group of companies, accepts responsibility for any
loss suffered by any person arising from reliance on this information.
Disclaimer
Webinar Series

| netwealth
We are an ASX-listed company who provide a range of
investment and superannuation solutions via our online platform.
4
See wealth differently
A little bit about Netwealth
Extensive range of investment options
Access ASX securities, International
securities, 300+ managed funds and more
Easy-to-use online research tools
Better research, manage and understand
your investments with our range of resources
Best-in-class technology
Manage your super and investments
using market-leading portfolio and
transaction tools

| netwealth
As a specialist platform provider, Netwealth provides
financial advisers with a wide range of financial products
& services to help manage their clients’ investments and
superannuation.
• Ranked #1 for overall functionality
• Ranked #1 for overall satisfaction
• Awarded best reporting
• Awarded best client portal
• Awarded best transaction tools
*Investment Trends Platform CompetitiveAnalysis & Benchmarking Report (Dec 17)
5
See wealth differently
A little bit about Netwealth

| netwealth
Key features of our platform
Portfolio management tools Performance reports
• Buy sell and track super and non-super
investments in one place
• Manage your savings, deposits and/or
super contributions
• Set up an income and/or pension plan
• Powerful reports and charts
• Cash transaction listing
• Set investment goal, notifications and
tasks
Investment research tools
• Managed funds research
• ASX live research
• US securities research from Tipranks
• Daily finance and economic newsletter

| netwealth Webinar Series7
Charlie Lanchester
Portfolio Manager at BlackRock
Meet today’s speaker

The ex-factor for driving returns in
Australian Equities
prepared for Netwealth Portfolio Construction Webinar
Fundamental Active Equity - Australia
Charlie Lanchester
July 2019
A
D
M
A
S
T
E
R
-
S
T
A
M
P
!
R
E
T
H
0
6
1
9
A
-
8
7
8
5
4
7
-
1
/
3
1
RETH0619A-878547-1/31

Market Update
FOR WHOLESALE CLIENTS ONLY – NOT FOR DISTRIBUTION TO RETAIL CLIENTS
A
D
M
A
S
T
E
R
-
S
T
A
M
P
!
R
E
T
H
0
6
1
9
A
-
8
7
8
5
4
7
-
2
/
3
1
RETH0619A-878547-2/31

10
To help protect your privacy, PowerPoint has blocked automatic download of this picture.
Aggregate earnings growth below expectations
ASX EPS / PE and Price
Source: Shaw and Partners as at 31 May 2019. For illustration purpose only.
A
D
M
A
S
T
E
R
-
S
T
A
M
P
!
R
E
T
H
0
6
1
9
A
-
8
7
8
5
4
7
-
3
/
3
1
RETH0619A-878547-3/31

11
Spreads between bond and dividend yields are widening….
Bond and Dividend yields
A
D
M
A
S
T
E
R
-
S
T
A
M
P
!
R
E
T
H
0
6
1
9
A
-
8
7
8
5
4
7
-
4
/
3
1
RETH0619A-878547-4/31

12FOR WHOLESALE CLIENTS ONLY – NOT FOR DISTRIBUTION TO RETAIL CLIENTS
…where should the equity risk premium be?
Spreads between equity yields and bond yields
A
D
M
A
S
T
E
R
-
S
T
A
M
P
!
R
E
T
H
0
6
1
9
A
-
8
7
8
5
4
7
-
5
/
3
1
RETH0619A-878547-5/31

Low-volatility stocks look expensive
FOR WHOLESALE CLIENTS USE ONLY – NOT FOR DISTRIBUTION TO RETAIL CLIENTS 13
Source: Goldman Sacks, as at 31 May 2019. For illustration purpose only. *Low volatility stocks are defined as the 40 stocks with the lowest share price volatility in the ASX200. Portfolios are rebalanced each
month and look at the stocks share price volatility over the prior 4 years.
12 months forward P/E of 40 ‘low volatility” stocks*
A
D
M
A
S
T
E
R
-
S
T
A
M
P
!
R
E
T
H
0
6
1
9
A
-
8
7
8
5
4
7
-
6
/
3
1
RETH0619A-878547-6/31

US versus Australian Technology Valuations
FAANG vs WAAAX
Source: Diogenes Research, Bloomberg as at 31 May 2019. For illustration purpose only.
Current EV/Sales EV/Sales since 2004
0
5
10
15
20
Facebook Amazon Apple Netflix Google Aus Tech
EV/ Sales EV/ Sales FY1
0
5
10
15
20
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Aus Tech Facebook Amazon
Apple Netflix Google
A
D
M
A
S
T
E
R
-
S
T
A
M
P
!
R
E
T
H
0
6
1
9
A
-
8
7
8
5
4
7
-
7
/
3
1
RETH0619A-878547-7/31

Structural market themes
THEMES WE LIKE
1
2
3
THEMES WE AVOID
1
2
3
CONSUMER CYCLICALS
RETAIL REITS
COMPLACENT OLIGOPOLIES
(i.e. Domestic banks and supermarkets)
EMERGING MARKET CONSUMER
MINING AND OIL SERVICES
TECHNOLOGY
15
Falling
Property
Prices
Consumer
Leverage
Disruption
of
oligopolies
Technology
Geopolitical
relationship
with China
Increased
regulations
THEMES WE MONITOR
FOR WHOLESALE CLIENTS USE ONLY – NOT FOR DISTRIBUTION TO RETAIL CLIENTSFOR WHOLESALE CLIENTS ONLY – NOT FOR DISTRIBUTION TO RETAIL CLIENTS
A
D
M
A
S
T
E
R
-
S
T
A
M
P
!
R
E
T
H
0
6
1
9
A
-
8
7
8
5
4
7
-
8
/
3
1
RETH0619A-878547-8/31

Eliminating concentration risk in portfolios – a truly balanced index
ASX 300 ASX 300 Industrials ex-top 5
Source: ASX / BlackRock, as of 31 May 2019, for illustrative purposes only. Due to rounding the total may not be equal to 100%. The S&P/ASX 300 index is a market-capitalisation weighted and float-adjusted
stock market index of Australian stocks listed on the Australian Securities Exchange from Standard & Poor's. The S&P/ASX 300 Industrials ex-top 5 is a custom benchmark for the Strategy. It is made up of the
Industrial companies on the ASX excluding the top 5 by market cap. It is not possible to directly invest in an unmanaged index.
16
31%
19%
8%
8%
8%
5%
6%
6%
4%2%2%
Financials
Materials
Real Estate
Health Care
Industrials
Consumer Staples
Consumer
Discretionary
Energy
Communication
Services
Utilities
Information
Technology
18%
7%
15%
6%16%
10%
12%
7%
4%5%
Financials
Materials
Real Estate
Health Care
Industrials
Consumer
Staples
Consumer
Discretionary
Communication
Services
Utilities
Information
Technology
FOR WHOLESALE CLIENTS USE ONLY – NOT FOR DISTRIBUTION TO RETAIL CLIENTS
What happens to sector exposures and biases when you eliminate the Top 5 Stocks and Resources?
FOR WHOLESALE CLIENTS ONLY - NOT FOR DISTRIBUTION TO RETAIL CLIENTS
A
D
M
A
S
T
E
R
-
S
T
A
M
P
!
R
E
T
H
0
6
1
9
A
-
8
7
8
5
4
7
-
9
/
3
1
RETH0619A-878547-9/31

How we Invest the Ex-Factor
17
Source: BlackRock as at 31 May 2019, not to scale, for illustrative purposes only.
$300m $70bn$20bnASX100
Investing Sweet Spot
NINE ENTERTAINMENT
WORLEY
TREASURY WINES ESTATES
GENTRACK
RESMEDBRAVURA
FOR WHOLESALE CLIENTS ONLY - NOT FOR DISTRIBUTION TO RETAIL CLIENTS
A
D
M
A
S
T
E
R
-
S
T
A
M
P
!
R
E
T
H
0
6
1
9
A
-
8
7
8
5
4
7
-
1
0
/
3
1
RETH0619A-878547-10/31

Retailers experiencing both revenue and cost pressure
Source: FWC, Citi Research Estimates as at 31 May 2019. For illustration purpose only.
Wage risks for ASX-listed retailers Status of Enterprise Agreements
0.6%
1.1%
1.6%
1.7%
1.9%
1.9%
2.1%
2.3%
2.6%
3.1%
3.2%
3.8%
5.7%
Nick Scali
Lovisa
JB Hifi
Specialy…
Premier Inv.
Beacon…
Accent Group
Super Retail
Wesfarmers…
Woolworths
Baby Bunting
Michael Hil
Myer
EBIT Impact of a 1% increase in wage
costs
Retailer EBA end Date EBA Status
Premier retail 01-Sep-12 Expired
Myer 31-Jul-13 Expired
Officeworks 31-Mar-15 Expired
Target 31-Jul-15 Expired
Big W 01-Aug-15 Expired
Kmart 30-Apr-16 Final Negotiations
Bunnings 30-Jun-16 Expired
Super Retail 15-Jul-18 Expired
JB Hifi n/a General Award
Coles 20-Apr-20 Current
Woolworths TBC Current
A
D
M
A
S
T
E
R
-
S
T
A
M
P
!
R
E
T
H
0
6
1
9
A
-
8
7
8
5
4
7
-
1
1
/
3
1
RETH0619A-878547-11/31

$0
$5
$10
$15
$20
2013 2014 2015 2016 2017 2018 2019
TWE 5 Year Share Price
Investment Example – Treasury Wine (TWE)
19
Source: BlackRock, as at 31 May 2019, illustrative example only. Opinions and forecasts subject to change. This is not a recommendation to invest in any particular financial product. No analysis of their
suitability was conducted and no statement of opinion in relation to their suitability is provided. Case studies are for illustrative purposes only; they are not meant as a guarantee of any future results or
experience, and should not be interpreted as advice or a recommendation. The figures shown relate to past performance. Past performance is not a reliable indicator of current or future results and should
not be the sole factor of consideration when selecting a product or strategy.
 Brand owners of luxury wine like TWE have pricing power.
 Wine production is a 15 year agricultural cycle and the grape bearing area in Australia has
fallen 20% since the peak in 2006 - TWE has invested through this period and has $1.1
billion in luxury wine inventory.
 Globally wine production is at a 60 year low.
A
D
M
A
S
T
E
R
-
S
T
A
M
P
!
R
E
T
H
0
6
1
9
A
-
8
7
8
5
4
7
-
1
2
/
3
1
RETH0619A-878547-12/31

TWE is a disrupter in the distribution of wine in China
Source: Treasury Wine Estate, BlackRock. as at 31 May 2019. For illustration purpose only.
TWE Most competitors
Négociants
National Distributor
End Consumer
Wholesaler (including SOE’s)
On premiseRetailer / E-Commerce
Margin up to 25%
Margin up to 60%
A
D
M
A
S
T
E
R
-
S
T
A
M
P
!
R
E
T
H
0
6
1
9
A
-
8
7
8
5
4
7
-
1
3
/
3
1
RETH0619A-878547-13/31

China operating model
TWE’s ambition is to expand city distribution coverage by 50% in the next 3 years with increased
allocation to Luxury wine
TWE’s current geographic footprint TWE’s targeted geographic footprint
Geographic coverage
Source: Treasury Wine Estate, BlackRock as at 31 May 2019. For illustration purpose only.
low medium high
A
D
M
A
S
T
E
R
-
S
T
A
M
P
!
R
E
T
H
0
6
1
9
A
-
8
7
8
5
4
7
-
1
4
/
3
1
RETH0619A-878547-14/31

Investment Example - Nine Entertainment (NEC)
22
Source: BlackRock as at 31 May 2019, illustrative example only. Opinions and forecasts subject to change. This is not a recommendation to invest in any particular financial product. No
analysis of their suitability was conducted and no statement of opinion in relation to their suitability is provided. Case studies are for illustrative purposes only; they are not meant as a
guarantee of any future results or experience, and should not be interpreted as advice or a recommendation. The figures shown relate to past performance. Past performance is not a
reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy.
 Developing a multi-platform digital media business and strong relationships with top 100 advertisers
 Demonstrating both revenue and cost synergies from the merger with Fairfax
 STAN has 1.5 billion active subscribers and around $190 million in revenue
 Domain has kept profits roughly stable in a market with property listings -13%
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
NEC 5 Year Share Price
A
D
M
A
S
T
E
R
-
S
T
A
M
P
!
R
E
T
H
0
6
1
9
A
-
8
7
8
5
4
7
-
1
5
/
3
1
RETH0619A-878547-15/31

Investment Example – Worley (WOR)
23
 Current capex remain close to the bottom of the cycle and the stock
has de-rated significantly
 Fundamentals are attractive – demand is growing for both oil and
gas and renewables, oil depletion rates are increasing – leading to a
growing supply gap.
 The integration o f the Jacobs deal is well managed with upgraded
guidance for cost synergies and talks of revenue synergies starting.
Source: BlackRock as at 31 May 2019, illustrative example only. Opinions and forecasts subject to change. This is not a recommendation to invest in any particular financial product. No analysis of their
 A global leader in providing professional services to energy,
resources and complex process industries.
 The recent acquisition of Jacob’s engineering business doubles the
size of the business.
 Worley is the largest servicing upstream hydrocarbons, downstream
(petrochemicals & refining) and number 2 in metals and mining.
0
5
10
15
20
25
30
35
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
WOR 10 Year Share Price
A
D
M
A
S
T
E
R
-
S
T
A
M
P
!
R
E
T
H
0
6
1
9
A
-
8
7
8
5
4
7
-
1
6
/
3
1
RETH0619A-878547-16/31

Source: Worley, BlackRock as at 31 May 2019. For illustration purpose only.
Lump sum/Fixed price
Resources
13%
83%
7%
43%
55%
43%
17%
47%
47%
15%
8%
10%
30%
44%
38%
Capex vs opex
Commercial model
Lines of Business
Sectors
Region
Major capital projects Modifications, sustaining and small capex opex
Reimbursable
Advisian Energy and Chemicals Services MMM Services Major Projects & Integrated Solutions
Chemicals Energy
EMEAAPACAmericas
A well diversified and defensive business base
The business mix trying to break its correlation to the oil price
A
D
M
A
S
T
E
R
-
S
T
A
M
P
!
R
E
T
H
0
6
1
9
A
-
8
7
8
5
4
7
-
1
7
/
3
1
RETH0619A-878547-17/31

Source: International Energy Agency (IEA), World Energy Investment 2019 as at 31 May 2019.
More investments needed in certain part of the oil chain
Conventional oil and gas investment
0
5
10
15
20
25
2011 2012 2013 2014 2015 2016 2017 2018 NPS SDS
Crude Oil
0
5
10
15
20
25
2011 2012 2013 2014 2015 2016 2017 2018 NPS SDS
Gas
Oil Production with no new investment from 2018 vs estimated demand in NPS and SDS
0
50
100
2010 2020 2030 2040
SDS demand
NPS demand
Other
EHDB - Extra Heavy oil &
bitumen
NGLs - Natural gas liquids
Onshore
Offshore
A
D
M
A
S
T
E
R
-
S
T
A
M
P
!
R
E
T
H
0
6
1
9
A
-
8
7
8
5
4
7
-
1
8
/
3
1
RETH0619A-878547-18/31

Investment Example – Gentrack Group (GTK)
26
Source: BlackRock as at 31 May 2019, illustrative example only. Opinions and forecasts subject to change. This is not a recommendation to invest in any particular financial product. No analysis of their
 Gentrack is a software company that provides business critical and deeply embedded software solutions
to electricity, water and gas utilities, and airports around the world.
 Gentrack have entered markets were de-regulation is driving significant growth opportunities and now
have offices in New Zealand, Australia, UK, Singapore and USA..
 Gentrack is transitioning their customers onto a SaaS model with more than 70% of revenues now
annually recurring. With virtually 0% churn, this revenue stream is highly valuable.
 Brexit uncertainty at a time of heavy reinvestment in the platform has led to temporary margin
compression and provided a highly attractive opportunity to add to the investment.
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
2014 2015 2016 2017 2018 2019
GTK 5 Year Share Price
A
D
M
A
S
T
E
R
-
S
T
A
M
P
!
R
E
T
H
0
6
1
9
A
-
8
7
8
5
4
7
-
1
9
/
3
1
RETH0619A-878547-19/31

UK – Case study
Source: OfGem, BlackRock as at 31 May 2019. For illustration purpose only.
What has happened?
Energy market regulators have been making changes in order to:
0%
20%
40%
60%
80%
100%
Q12004
Q32004
Q12005
Q32005
Q12006
Q32006
Q12007
Q32007
Q12008
Q32008
Q12009
Q32009
Q12010
Q32010
Q12011
Q32011
Q12012
Q32012
Q12013
Q32013
Q12014
Q32014
Q12015
Q32015
Q12016
Q32016
Q12017
Q32017
Q12018
Q32018
“Big 6” continue to lose share post de-regulation
"Big 6" Electricity Retailers Challenger Brands
4 of the “Big 6” are now
customers of Gentrack
 This has led to multiple new entrants, the majority of whom use Gentrack’s software due to its much lower cost to serve.
 Gentrack are implemented in 45 UK customers with their nearest competitor only in 6.opportunity to add to the investment.
 In response to the disruption, the Big 6 are now using Gentrack in their own challenger brands providing significant growth potential for Gentrack as
well as the opportunity to enter new markets in Europe.
 Residential water market is deregulating in 2020.
 increase competition amongst retailers
 reduced energy prices
 make switching easier
 improve service levels and
 protect vulnerable customers
A
D
M
A
S
T
E
R
-
S
T
A
M
P
!
R
E
T
H
0
6
1
9
A
-
8
7
8
5
4
7
-
2
0
/
3
1
RETH0619A-878547-20/31

Investment Example – Bravura Solutions (BVS)
28
 Sonata is a comprehensive SaaS product suite for wealth
management and fund administration companies.
 Sonata is the result of $100 million spent over 10 years. It is built on
a single modern code base on Java/Oracle and so can be deployed in
the cloud/private cloud.
 Bravura Solutions is net cash and is looking to grow into new
markets.
Source: BlackRock as at 31 May 2019, illustrative example only. Opinions and forecasts subject to change. This is not a recommendation to invest in any particular financial product. No
analysis of their suitability was conducted and no statement of opinion in relation to their suitability is provided. Case studies are for illustrative purposes only; they are not meant as a
guarantee of any future results or experience, and should not be interpreted as advice or a recommendation. The figures shown relate to past performance. Past performance is not a
reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy.
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
11-2016 02-2017 05-2017 08-2017 11-2017 02-2018 05-2018 08-2018 11-2018 02-2019
BVS 2 Year Share Price
 Bravura is well positioned in the wealth management, life insurance
and funds administration software industries.
 Structural growth drivers include regulation and end-user demand
for an increasingly digitised product.
 Bravura has over 30 year experience and in excess of $2.8 trillion of
assets entrusted to its systems.
 Bravura has 12 offices across Australia, New Zealand, the United
Kingdom, Europe, Africa and Asia.
A
D
M
A
S
T
E
R
-
S
T
A
M
P
!
R
E
T
H
0
6
1
9
A
-
8
7
8
5
4
7
-
2
1
/
3
1
RETH0619A-878547-21/31

Recurring Revenue 72% of Total Revenue
Source: Bravura Solutions, BlackRock as at 31 May 2019. For illustration purpose only.
114.1
127.7 131.5
149.4
92.1
32.8
44.1
45.3
61.9
26.2
5.2
12.9
15.1
10.2
9.2
FY15 FY16 FY17 FY18 1H19
Recurring revenues (A$m) Licence Fees (A$m) Implementation fees (A$m)
152.1
184.7
191.9
221.5
127.5
A
D
M
A
S
T
E
R
-
S
T
A
M
P
!
R
E
T
H
0
6
1
9
A
-
8
7
8
5
4
7
-
2
2
/
3
1
RETH0619A-878547-22/31

The BlackRock Concentrated Industrial Share
Fund
FOR WHOLESALE CLIENTS USE ONLY – NOT FOR DISTRIBUTION TO RETAIL CLIENTS
A
D
M
A
S
T
E
R
-
S
T
A
M
P
!
R
E
T
H
0
6
1
9
A
-
8
7
8
5
4
7
-
2
3
/
3
1
RETH0619A-878547-23/31

Why the BlackRock Concentrated Industrial Share Fund?
Concentrated nature of the fund ensures deep knowledge of companies held within the fund
Nimble in market allowing exploitation of market inefficiencies with support of world’s largest fund manager
Global BlackRock platform leads to broader market intelligence
Team’s interests are aligned with clients via investment in the fund
1
1. World’s largest asset manager, BlackRock Inc, based on US $6.51 trillion in AUM as of 31 March 2019. For illustrative purposes only. This is not a recommendation to invest in any
particular financial product. No analysis of their suitability was conducted and no statement of opinion in relation to their suitability is provided.
31
Focused on industrial, technology and healthcare companies at the vanguard of Australia’s innovation
A
D
M
A
S
T
E
R
-
S
T
A
M
P
!
R
E
T
H
0
6
1
9
A
-
8
7
8
5
4
7
-
2
4
/
3
1
RETH0619A-878547-24/31

Investment Process – Applying the 5 Quality Filters
Quality
managemen
t
Moderate
debt levels
Recurring
Profits
Superior
businesses
ESGStock
Universe
Investable
Universe
Company
Access
Structured & disciplined research framework
Quality
Management
 Rigorous assessment of the
Board and management
 Always involves direct
contact with key personnel
Moderate Debt
Levels
 We will not invest in
businesses with EBIT
interest cover < 4x
 Always aware of operating
and financial leverage
 Risk management to
protect the strategy
Profits
 Businesses that
demonstrate a history of
recurring profits
 Focus on real earnings –
cashflow vs accounting
profits
 Avoid competitive
/structural threats,
unsustainable margins,
financial engineering
Superior
Businesses
 Quality businesses
 Competitive advantages
 Clearly understood
ESG
 Environmental
 Social
 Governance
 Avoid companies who
significant breach these
protocols
BlackRock
Resources
Source: BlackRock, illustrative purposes only. Investment Philosophy and process subject to change and provided here for illustrative purposes only.
32FOR WHOLESALE CLIENTS USE ONLY – NOT FOR DISTRIBUTION TO RETAIL CLIENTSFOR WHOLESALE CLIENTS ONLY – NOT FOR DISTRIBUTION TO RETAIL CLIENTS
A
D
M
A
S
T
E
R
-
S
T
A
M
P
!
R
E
T
H
0
6
1
9
A
-
8
7
8
5
4
7
-
2
5
/
3
1
RETH0619A-878547-25/31

Investment Process – Analytical Process & Deep Dive
Stock
Ranks
Asset plays /
deep value
Company Turnarounds
Cyclical Recoveries
Growth Mispriced
Industry Consolidation
IPO’s/Secondary
Offerings
Value
Risk Analysis
Weighting & Exposure
Conviction
200 20-40
Rating
1-5
Research
Pipeline
Flexible Investments within a structured and disciplined research framework
Industry
specialists
Company
visits
Results
analysis
Unlisted
company
visits
60-80
33
Source: BlackRock, illustrative purposes only. Investment Philosophy and process subject to change and provided here for illustrative purposes only.
A
D
M
A
S
T
E
R
-
S
T
A
M
P
!
R
E
T
H
0
6
1
9
A
-
8
7
8
5
4
7
-
2
6
/
3
1
RETH0619A-878547-26/31

A more balanced Australian equity exposure
34
Top 10 Holdings Sector Breakdown
Source: ASX / BlackRock, as at 31 May 2019, illustrative purposes only. This is not a recommendation to invest in any particular financial product. No analysis of their suitability was conducted and no
statement of opinion in relation to their suitability is provided. The specific companies identified and described above do not represent all of the companies purchased or sold, and no assumptions should be
made that the companies identified and discussed were or will be profitable. Due to rounding, the total may not be equal to 100%.
AMCOR LTD
ARISTOCRAT LEISURE LTD
BORAL LTD
CENTURIA CAPITAL STAPLED UNITS LTD
CLEANAWAY WASTE MANAGEMENT LTD
NINE ENTERTAINMENT CO HOLDINGS LTD
RESMED CDI INC
SONIC HEALTHCARE LTD
TREASURY WINE ESTATES LTD
WORLEYPARSONS LTD
12%
12%
13%
5%4%10%
16%
8%
12%
Communication
Services
Consumer
Discretionary
Consumer Staples
Energy
Financials
Health Care
Industrials
Information
Technology
Materials
A
D
M
A
S
T
E
R
-
S
T
A
M
P
!
R
E
T
H
0
6
1
9
A
-
8
7
8
5
4
7
-
2
7
/
3
1
RETH0619A-878547-27/31

Gross Performance – Cumulative Chart
Graph Source: BlackRock as at 31 May 2019. BlackRock ConcentratedIndustrial Share Strategy ARSN 608 699 341 inception 9 December 2015 until 31 May 2019.
Performance information for the Strategy is only shown from the inception of the Strategy and is short term in nature. Unless stated otherwise, performance for periods greater than one year is annualised. Performance is calculated in Australian
dollars and assumes reinvestmentof distributions. Gross performanceis calculated gross of ongoing fees and expenses.
Table Source: BlackRock, as at 31 May 2019. Past performanceis not a reliableindicator of future performance. ** S&P/ASX300 Industrials Accumulation Ex Top 5 Stocks by Mkt Cap Gross Index
Past performanceis not indicativeof future results.
35
May 2019 % 3-Mth % YTD 1 Year % pa 2 Year % pa 3 Year % pa
Since Inception*
% p.a.
BlackRock Concentrated Industrial Share Fund
Class D – Gross
2.36 8.70 18.49 -2.60 10.89 11.31 13.46
Benchmark** 0.27 6.28 16.24 10.50 9.31 9.17 11.00
Outperformance (Gross of Fees) 2.09 2.41 2.25 -13.10 1.58 2.14 2.45
S&P ASX 300 Accumulation Index (AUD) 1.75 4.25 15.63 10.93 10.46 10.57 11.00
FOR WHOLESALE CLIENTS USE ONLY – NOT FOR DISTRIBUTION TO RETAIL CLIENTSFOR WHOLESALE CLIENTS ONLY - NOT FOR DISTRIBUTION TO RETAIL CLIENTS
$9,000.00
$10,000.00
$11,000.00
$12,000.00
$13,000.00
$14,000.00
$15,000.00
$16,000.00
$17,000.00
Dec 2015 Jun 2016 Dec 2016 Jun 2017 Dec 2017 Jun 2018 Dec 2018
BlackRock Concentrated Industrial Share Fund - Cumulative Growth of $10, 000
BlackRock Concentrated Industrial Share Fund ASX300 Industrials ex-Top 5 ASX300
A
D
M
A
S
T
E
R
-
S
T
A
M
P
!
R
E
T
H
0
6
1
9
A
-
8
7
8
5
4
7
-
2
8
/
3
1
RETH0619A-878547-28/31

Portfolio – Contributions
Top Contributors
1
2
3
4
5
Bottom Contributors
1
2
3
4
5
Source: BlackRock, as at 31 May 2019 for the period 25 October 2016 to 31 May 2019 . Performance is based on exit-to-exit price basis with all income reinvested and no allowance for tax on income.
Performance information is only shown from 25 October and is short term in nature. Performance returns over this period may not be indicative of the long term performance. This is not a
recommendation to invest in any particular financial product. No analysis of their suitability was conducted and no statement of opinion in relation to their suitability is provided. Past performance is not
a reliable indicator of future performance.
JANUS HENDERSON GROUP CDI PLC
Financials
MACQUARIE GROUP LTD
Financials
QMS MEDIA LTD
Communications Services
BEGA CHEESE LTD
Consumer Staples
GATEWAY LIFESTYLE GROUP UNITS
Real Estate
EXPERIENCE CO LTD
Consumer Discretionary
KOGAN.COM LTD
ARISTOCRAT LEISURE LTD
CLEANAWAY WASTE MANAGEMENT LTD
Industrials
TREASURY WINE ESTATES LTD
Consumer Staples
FAIRFAX MEDIA LTD
Communications Services
BRAVURA
Information Technology
36FOR WHOLESALE CLIENTS USE ONLY – NOT FOR DISTRIBUTION TO RETAIL CLIENTSFOR WHOLESALE CLIENTS ONLY – NOT FOR DISTRIBUTION TO RETAIL CLIENTS
6 6
A
D
M
A
S
T
E
R
-
S
T
A
M
P
!
R
E
T
H
0
6
1
9
A
-
8
7
8
5
4
7
-
2
9
/
3
1
RETH0619A-878547-29/31

Source, BlackRock
Team Biographies
Charlie Lanchester, ASIP, Managing Director, and Head of the Australian Fundamental Equity team. He is the portfolio manager
for the BlackRock Concentrated Industrial Share Fund. Mr Lanchester was a long standing member of the Australian Equities
team at Perpetual Investments. He was the lead manager of the Perpetual Industrial Share Fund and a portfolio manager for
10 years. As the Deputy Head of Equities he managed a team of analysts with a focus on performance measurement. Prior to
Perpetual, Charlie worked as a senior telecoms analyst at Platinum Asset Management. Charlie began his investment career in
London in 1992 where he worked at Schroder Investment Management as a UK equity analyst. Charlie is an associate of the UK
Society of Investment Professionals and has a BA (hons) in Modern History from New College, Oxford.
Madeleine Beaumont, Director, has been serving as a Senior Portfolio Manager of Australian Fundamental Equities at
BlackRock Asset Management Australia Limited since joining the firm on 1 June 2015. She began her career in the stock-broking
industry, then transferred to the buy-side at SBC Brinson, where she covered media, food and retail. Madeleine spent 11 years
in London, where she broadened her experience, covering the UK and Continental European markets. She worked for SEB and
for M&G, the investment arm of Prudential PLC. While at M&G, Madeleine was rated the number 2 Consumer Analyst. She was
head of European Equity research and successfully managed a Pan-European Equity Portfolio. She is a CFA charter holder and
holds a Bachelor's of Agriculture (Hons). Madeleine is also a Graduate of AICD and is involved as a non-executive director in the
not for profit sector.
Sam Theodore, Director, has 12 years' experience in investment markets. Prior to joining BlackRock, he spent his entire
investment career at UBS. In his final role at UBS he was Head of Gaming and Engineering and Contractors Research. Prior to
this role, Sam was Head of Emerging Companies Research. As an analyst he also had responsibility for the Paper and Packaging
and Media sectors. Prior to joining UBS, Sam was a practicing solicitor. Sam has a Bachelor of Commerce/Law (majoring in
Accounting) from Macquarie University.
Nick Corkill, Vice-President and research analyst, is a member of the Australian Fundamental Active Equity division of
BlackRock's Active Equity Group. Nick works on the BlackRock Concentrated Industrial Share Fund and has responsibility for a
range of sectors including Building Materials, Chemicals, Paper and Packaging, Transport and the Agricultural space. Prior to
joining BlackRock, Nick commenced his career as an oil trader followed by more than 5 years at Perpetual Investments as an
equities dealer and later as an equity analyst. Nick has a Bachelor of Commerce from Lincoln University and a Bachelor of Arts
from University of Canterbury.
A
D
M
A
S
T
E
R
-
S
T
A
M
P
!
R
E
T
H
0
6
1
9
A
-
8
7
8
5
4
7
-
3
0
/
3
1
RETH0619A-878547-30/31

Important Information
This document has been issued by BlackRock Investment Management (Australia) Limited ABN 13 006 165 975 AFSL 230 523 (BIMAL) for the exclusive use of the recipient, who warrants by receipt of this document that they are a wholesale client
as defined under the Corporations Act 2001 (Cth). This document is intended only for wholesale clients and must not be relied or acted upon by retail clients.
This document is provided to the recipient on a strictly confidential basis (with the exception of providing it to the recipient’s professional advisors, who are also bound to keep such information confidential).
BIMAL is the responsible entity and issuer of units in the BlackRock Concentrated Industrial Share Fund ARSN 608 699 341 (Fund). You should obtain and consider the PDS before deciding whether to acquire, continue to hold or dispose of units in
the Fund.
BIMAL, its officers, employees and agents believe that the information in this document and the sources on which the information is based (which may be sourced from third parties) are correct as at the date of this document. While every care
has been taken in the preparation of this document, 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 document are made on a reasonable basis,
actual future results and operations may differ materially from the forecasts, estimates and opinions set out in this document. BIMAL does not guarantee the repayment of capital or the performance of any product or rate of return referred to in
this presentation. Past performance is not a reliable indicator of future performance.
Performance information set out in this document is calculated in accordance with Financial Services Council standards. Unless stated otherwise, performance for periods greater than one year is annualised. Performance is calculated in Australian
dollars and assumes reinvestment of distributions. Gross performance is calculated gross of ongoing fees and expenses. Net performance is calculated on exit-to-exit price basis, e.g. net of ongoing fees and expense.
The investment strategy set out in this document commenced on inception of the Fund on 7 December 2015. Performance information in this document is only shown from 9 December 2015 and is short term in nature. Performance returns over
this period may not be indicative of the long term performance. Gross performance is calculated gross of ongoing fees and expenses. Net performance is calculated on exit-to-exit price basis, e.g. net of ongoing fees and expense.
This document is not a securities recommendation. This document is not intended as an offer or solicitation with respect to the purchase or sale of any securities in any jurisdiction.
No part of this document may be reproduced or distributed in any manner without the prior written permission of BIMAL.
© 2019 BlackRock, Inc. All Rights reserved. BLACKROCK and BLACKROCK SOLUTIONS are registered and unregistered trademarks of BlackRock, Inc. or its subsidiaries in the United States and elsewhere. All other trademarks are those of their
respective owners.
AUS2016-852
Disclaimer
A
D
M
A
S
T
E
R
-
S
T
A
M
P
!
R
E
T
H
0
6
1
9
A
-
8
7
8
5
4
7
-
3
1
/
3
1
RETH0619A-878547-31/31

| netwealth40
1 CPD point available
• CPD details will be included in the
webinar resources email
Webinar recording and slides
• These will be included in the
webinar resources email
Thank you

| netwealth
Compare funds and models
• Netwealth website: Personal>Resources and Tools
Portfolio construction podcast series
• Discover investment opportunities from wealth
management professionals
41
Links will be in the follow-up email
You may be interested in

| netwealth
Banqer
• Supporting financial literacy in schools
• Refer a teacher today
42
Links will be in the follow-up email
You may be interested in

| netwealth43
This webinar and information has been prepared and issued by Netwealth Investments Limited (Netwealth), ABN 85 090
569 109, AFSL 230975. It contains factual information and general financial product advice only and has been prepared
without taking into account the objectives, financial situation or needs of any individual. The information provided is not
intended to be a substitute for professional financial product advice and you should determine its appropriateness having
regard to you or your client’s particular circumstances. The relevant disclosure document should be obtained from
Netwealth and considered before deciding whether to acquire, dispose of, or to continue to hold, an investment in any
Netwealth product.
While all care has been taken in the preparation of this document (using sources believed to be reliable and accurate), no
person, including Netwealth, or any other member of the Netwealth group of companies, accepts responsibility for any
loss suffered by any person arising from reliance on this information.
Disclaimer
Thank you
Webinar Series

Learn how to navigate the changing equity landscape

Recommended

Recommended

More Related Content

Similar to Learn how to navigate the changing equity landscape

Similar to Learn how to navigate the changing equity landscape (20)

More from netwealth Investment & Superannuation

More from netwealth Investment & Superannuation (9)

Recently uploaded

Recently uploaded (20)

Learn how to navigate the changing equity landscape