As Australia continues its shift from manufacturing to a services driven economy there are opportunities to find companies that will perform no matter how the macro environment changes.
BlackRock's Australian head of fundamental active equities, Charlie Lanchester, says finding these companies might mean turning over plenty of stones but successful investing "is as much about avoiding the losses as picking the winners."
He explains the ex-factor for the BlackRock Concentrated Industrial Share Fund is excluding the top-five stocks in terms of market capitalisation, which helps address the concentration risk many investors hold.
In the accompanying video and article, Lanchester tells us how the investment team approaches investing for alpha in the small and mid-cap end of the market to capture performance from Australian equities.