Arrowstreet Global Equity FundCombining investment intuition with rigorous quantitative research

What the Arrowstreet Global Equity Fund aims to offer

Broad global exposure

To developed and emerging market equities

Quantitative investment approach

Based on fundamental investment principles

Potential for higher long-term returns

Seeks to outperform the benchmark, irrespective of market conditions

Fund facts
Investment objective The Arrowstreet Global Equity Fund aims to achieve a long-term total return (before fees and expenses) that exceeds the MSCI All Country World ex Australia Index, in $A unhedged with net dividends reinvested (Benchmark).
Benchmark MSCI All Country World ex Australia Index, in $A unhedged with net dividends reinvested
Inception date 18 December 2006
Fund size $A2,357.1m (current as at 30 September 2018)
Management fee 1.28% pa of the net asset value of the fund
Performance fee 0.00%
Minimum investment $A20,000
Distribution frequency Generally semi-annually
APIR code MAQ0464AU
Macquarie Professional Series The Arrowstreet Global Equity Fund is proudly brought to you by Macquarie Professional Series. Learn more

Read the Product Disclosure Statement for more details on fees and expenses that may be charged.

A hedged version of the Fund is also available.

Investment strategy

Arrowstreet uses an active, quantitative investment approach that looks to consistently outperform the Benchmark through varying market conditions. Arrowstreet's quantitative models examine both information and behaviour to identify attractive stocks from around the world.

Arrowstreet then uses forecasting models and the judgement of its investment team to combine its rigorous quantitive research with investment intuition.

Stock forecasts are based upon a diverse set of predictive factors that can be categorised as value, momentum, quality, catalysts, extreme sentiment, high frequency and currency signals.

  • Value signals assist Arrowstreet to identify stocks that are either undervalued or overvalued relative to fundamentals.
  • Momentum signals assist Arrowstreet to identify stocks that are expected to outperform based on the slow reflection of information in security prices and the speculative behaviour on the part of investors.
  • Quality signals are slow moving complements to value signals. High quality growth signals justify higher long-term valuation multiples.
  • Catalysts are relatively high frequency signals that indicate changes in stock prices in the near term. These signals reflect the news rather than considering price movement information. Catalysts are typically used in timing entry to and exit from longer term trades.
  • Extreme sentiment signals are the complement of catalyst signals. As catalysts measure the change in sentiment, extreme sentiment signals measure the level of the sentiment.
  • High frequency signals help identify short-term opportunities and are useful in timing longer term trades driven by more persistent signals.
  • Currency signals help improve the currency exposure in a given portfolio.

In constructing the final portfolio, Arrowstreet uses an optimisation process to balance the trade-off between a stock’s expected return, its contribution to portfolio risks and its trading costs.

Performance

Net returns as at 30 September 2018

 
Period 1m (%) 3m (%) 6m (%) 1y (%) 2y (%pa) 3y (%pa) 5y (%pa) Inception* (%pa)
Arrowstreet Global Equity Fund** 1.24 8.34 11.74 22.03 13.24 17.21 8.46
Benchmark*** 0.43 6.60 11.23 19.18 12.27 14.55 5.95

Download full report

Unhedged:

Past performance is not a reliable indicator of future performance. Total returns are calculated based on changes in net asset values and assumes the reinvestment of distributions.

* Inception date is 18 December 2006

** Total net returns are quoted after the deduction of all fees and expenses. Due to individual investor circumstances, your net returns may differ from the net returns quoted above

***The Benchmark is the MSCI All Country World ex Australia Index, in $A unhedged with net dividends reinvested.

Hedged

Net returns as at 30 September 2018

 
Period 1m (%) 3m (%) 6m (%) 1y (%) 2y (%pa) 3y (%pa) 5y (%pa) Inception* (%pa)
Arrowstreet Global Equity Fund (Hedged)** 1.57 6.77 7.92 14.35 15.47 14.23 8.73
Benchmark*** 0.61 4.91 7.84 11.48 14.25 11.83 8.24

Download full report

Hedged:

Past performance is not a reliable indicator of future performance.

The Fund which has been in existence since March 1997, gained exposure to Arrowstreet Capital LP‘s investment process through an investment in the Arrowstreet Global Equity Fund (ARSN 122 036 006) from December 2006).

Total returns are calculated based on changes in net asset values and assumes the reinvestment of distributions.

* Inception date is 06 March 1997.

** Total net returns are quoted after the deduction of all fees and expenses. Due to individual investor circumstances, your net returns may differ from the net returns quoted above.

*** The benchmark performance is a combination of the MSCI All Country World ex-Australia unhedged pre 05 December 2008 and the MSCI All Country World ex-Australia hedged post 05 December 2008

Managers

Risks

All investments carry risk. Different investments carry different levels of risk, depending on the investment strategy and the underlying assets. Generally, the higher the potential return of an investment, the greater the risk. The risks of investing in this Fund include:

Investment risk: The Fund has exposure to share markets. The risk of an investment in the Fund is higher than an investment in a typical bank account or fixed income investment. Amounts distributed to unitholders may fluctuate, as may the Fund’s unit price. The unit price may vary by material amounts, even over short periods of time, including during the period between a redemption request or application for units being made and the time the redemption unit price or application unit price is calculated.

Market risk: Share markets can be and have been volatile, and have the potential to fall by large amounts over short periods of time. The investments of the Fund are likely to have a broad correlation with share markets in general, and hence poor performance or losses in domestic and/or global share markets are likely to negatively impact the overall performance of the Fund.

International investments risk: The fund invests in a range of international securities, and in companies that have exposure to a range of international economies. Global and country specific macroeconomic factors may impact the fund's international investments. Governments may intervene in markets, industries, and companies; may alter tax and legal regimes; and may act to prevent or limit the repatriation of foreign capital. Such interventions may impact the fund's international investments.

More information on the risks of investing in the Fund is contained in the Product Disclosure Statement, which should be considered before deciding to invest in the Fund.

How to invest

Download the Product Disclosure Statement – Unhedged Fund / Hedged Fund, Information Booklet, and check for PDS updates

Send us the Application Form and any required identification documents

Resources

Insights

Currency insights: beyond the lucky country

Read More

Awards and recognition

The Fund has been recognised for excellence, receiving a number of industry awards.

  • Winner – Best International Share Fund – Money magazine Best of the Best Awards 2017
  • Winner – Best International Share Fund – Money magazine Best of the Best Awards 2016
  • Winner – Best Global Equities Fund (Broad Cap) – Lonsec/Money Management Fund Manager of the Year Awards 2015.