The cost of Blackrock’s investment surge into the Australian top 200 companies has now topped the $A12 billion mark in the past 18 months with 5% plus stakes now identified in at least a 10 companies, in addition to huge stakes already held in the likes of BHP and Rio Tinto.
In fact 5% stakes (that’s the disclosure level for shareholders) have been identified in companies from the ANZ Bank to Fairfax Media, to Wesfarmers and Qantas.
The latest was in the AMP where Blackrock emerged yesterday with a stake of 5.20% worth $785 million at current prices and built up since March.
So far Blackrock has been identified buying stakes 5% stakes in Amcor (August 2016, now worth $900 million), Wesfarmers (January 2017, now worth $2.28 billion), Qantas (May 2017, now worth $$447 million) and Woolworths (late June and now worth $1.7 billion)).
Blackrock emerged with 5% of the ANZ in January, then sold down under the 5%, then down, then up in mid May where it has sat ever since with 5.07%, worth more than $4.40 billion.
The ANZ annual report for the year to last September said at the time the bank had no substantial shareholdings (5% or more) at the time. Now it has one.
Brambles is another top 200 company where Blackrock quietly emerged with a stake of 5.02% on July 12 worth $755 million, while the giant fund manager has a 5.02% stake in QBE (in early May, worth $815 million, and 5% of Insurance Australia group worth $771 million and first declared on July 11.
In fact July so far has been the busiest month with the stakes in Brambles, AMP and IAG all reported – worth over $2.3 billion.
It has spent heavily in a big punt on an improving outlook for the Australian economy (especially consumer demand) and the buying has also taken advantage of relatively low prices for the target companies.
