BLACKROCK UK SMALLER COMPANIES - Fund overview

Portfolio

• Asset Allocation
• Equity Geographic
• Equity Capitalisation

Allocation		Proportion
	Equity	98%
	High yield bonds	–
	Quality bonds	–
	Property	–
	Commodities	–
	Hedge	–
	Fund cash	2%

Allocation		Proportion
	UK	100%
	Europe	0%
	Nth America	0%
	Japan	0%
	Pacific	0%
	Other Equity	0%

Allocation		Proportion
	Large Caps	1%
	Mid Caps	11%
	Small Caps	88%

View all performance data for BLACKROCK UK SMALLER COMPANIES

Investment process

The BlackRock small cap team do not view themselves as contrarian investors, instead they generally prefer businesses that can demonstrate operational momentum, however they do consider themselves as contrarian investors with regard to share price momentum. Traditional value type plays may be held in the portfolio at the early stage of the business cycle.
Approximately 75% of the fund will consist of high quality core positions with the balance made up of more risky non core positions. Criteria for core holdings include, a quality management team, strong market position, positive cashflow (with a free cash flow yield at least be equivalent to gilts), a strong balance sheet (i.e. a net cash position), EPS growth track record together, short term operational momentum. Core portfolio positions will satisfy all these criteria and account for approx 75% by value. Non core portfolio positions generally fail to meet one of these criteria. Companies will be under a market cap of £1bn at the time of initial investment.