September, 2023
• The Fund returned -0.96%, net of fees, in September 2023, compared with a return for the Benchmark of -3.57%.
• Energy was the only market sector to advance in September, with IT and Consumer Discretionary amongst the leading Benchmark detractors. For the Fund, the largest relative sector contributors were Energy, as a result of overweight positioning in UK Energy and French Energy, and Financials, owing to overweight positioning in Japanese, Chinese and Turkish Financials. There were no sector level detractors for the Fund during the month.
• On a country basis, the US and France were the main detractors from index performance. The largest relative contributors for the Fund included Japan, owing to overweight positioning in Japanese Financials, and overweight positioning and stock selection within Japanese Industrials, and the US, due to stock selection in US Communication Services and underweight positioning to US Industrials. Taiwan was the largest relative detractor, driven by stock selection in Taiwanese IT.
• Arrowstreet employs a quantitative benchmark-aware approach, dynamically taking overweight and underweight positions in countries, sectors, and individual stocks, with the aim of achieving long-term outperformance of its Benchmark. Arrowstreet’s core investment style seeks to outperform during a broad range of market environments.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/205860269.pdfAugust, 2023
• The Fund returned -1.48%, net of fees, in August 2023, compared with a return for the Benchmark of -2.19%.
• The majority of market sectors moved higher during the month in unhedged terms, led by Energy, Health Care and IT. For the Fund, the largest relative sector contributors were Energy, as a result of stock selection in Brazilian Energy and overweight positioning in French Energy and Turkish Energy, and Consumer Staples, owing to overweight positioning in Turkish Consumer Staples. Health Care was the largest relative detractor, due to stock selection and underweight positioning in US Health Care.
• On a country basis, the US powered the overall index, offsetting weakness in Chinese equity markets. The largest relative contributors to the Fund included Turkey, owing to overweight positioning in Turkish Financials, Turkish Consumer Staples and Turkish Energy, and Japan, as a result of stock selection in Japanese Industrials. The US was the largest relative detractor, driven by stock selection in US Financials and underweight positioning in US Energy.
• Arrowstreet employs a quantitative benchmark-aware approach, dynamically taking overweight and underweight positions in countries, sectors, and individual stocks, with the aim of achieving long-term outperformance of its Benchmark. Arrowstreet’s core investment style seeks to outperform during a broad range of market environments.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/204275931.pdfJuly, 2023
• The Fund returned 2.99%, net of fees, in July 2023, compared with a return for the Benchmark of 3.09%.
• All sectors made a positive contribution to benchmark returns in July, led by Financials and Communication Services. For the Fund, the largest relative sector detractors were IT, as a result of stock selection in US IT and Chinese IT, and Consumer Discretionary, owing to stock selection in US Consumer Discretionary as well as underweight positioning and stock selection in Chinese Consumer Discretionary. Consumer Staples was the largest relative contributor, as a result of overweight positioning in Turkish Consumer Staples.
• On a country basis, positive index performance was driven by the US, China and Japan. The largest relative detractors from the Fund included the US, owing to stock selection in US IT and US Consumer Discretionary, and China, owing to stock selection in Chinese IT as well as underweight positioning and stock selection in Chinese Consumer Discretionary. Turkey was the largest relative contributor, due to overweight positioning in Turkish Financials, Turkish Consumer Staples and Turkish Energy.
• Arrowstreet employs a quantitative benchmark-aware approach, dynamically taking overweight and underweight positions in countries, sectors, and individual stocks, with the aim of achieving long-term outperformance of its Benchmark. Arrowstreet’s core investment style seeks to outperform during a broad range of market environments.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/203219094.pdfJune, 2023
• The Fund returned 5.45%, net of fees, in June 2023, compared with a return for the Benchmark of 5.33%.
• The Consumer Discretionary, IT and Industrials sectors made the largest contributions to a strong month for the index. For the Fund, the largest relative sector contributors were Energy, primarily due to overweight positioning and stock selection in Brazilian Energy, and Consumer Staples, owing to underweight positioning in US Consumer Staples. Financials was the largest relative detractor, as a result of overweight positioning and stock selection in Chinese Financials.
• On a country basis, the index-heavyweight US was responsible for most of the market’s gains. The largest relative contributors to the Fund included Brazil, owing to overweight positioning and stock selection in Brazilian Energy, and the UK, owing to overweight positioning in UK Materials and underweight positioning in UK Health Care and UK Consumer Staples. China was the largest relative detractor, due to overweight positioning and stock selection in Chinese Financials, as well as stock selection in Chinese Communication Services.
• Arrowstreet employs a quantitative benchmark-aware approach, dynamically taking overweight and underweight positions in countries, sectors, and individual stocks, with the aim of achieving long-term outperformance of its Benchmark. Arrowstreet’s core investment style seeks to outperform during a broad range of market environments.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/202408473.pdfMay, 2023
• The Fund returned -0.24%, net of fees, in May 2023, compared with a return for the Benchmark of -0.32%.
• The IT, Communication Services and Consumer Discretionary sectors were the only positive contributors to index returns in May. The largest relative sector contributors to the Fund were Communication Services, as a result of stock selection and overweight positioning in US Communication Services, and Health Care, owing to stock selection in US Health Care. Consumer Discretionary was the largest relative detractor, as a result of stock selection in US Consumer Discretionary, partially offset by overweight positioning.
• On a country basis, the technology sectors of the US, Japanese and Taiwanese equity markets powered the index higher. For the Fund, the largest relative contributors included Canada, as a result of underweight positioning in Canadian Financials and Canadian Materials, and South Korea, owing to overweight positioning in South Korean IT. The UK was the largest relative detractor, as a result of overweight positioning in UK Energy.
• Arrowstreet employs a quantitative benchmark-aware approach, dynamically taking overweight and underweight positions in countries, sectors, and individual stocks, with the aim of achieving long-term outperformance of its Benchmark. Arrowstreet’s core investment style seeks to outperform during a broad range of market environments.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/201246465.pdfDecember, 2022
The Fund returned -4.12%, net of fees, in December 2022, compared with a return for the Benchmark of -4.86%; Chinese equity markets remained buoyant amid an economic reopening, but elsewhere, developed and emerging markets fell on ongoing interest rate uncertainty.
All index sectors moved lower during the month, with IT and Consumer Discretionary recording the greatest declines. The largest relative sector contributors for the Fund were Energy, driven by overweight positioning in French Energy, and Consumer Discretionary, owing to stock selection in US Consumer Discretionary, though partially offset by overweight positioning. Communication Services was the largest relative detractor, as a result of underweight positioning in Chinese Communication Services.
On a country basis, the US was the largest detractor from index returns, while China and Hong Kong made modest positive contributions. The largest relative contributors to the Fund included Turkey, as a result of overweight positioning in Turkish Financials and Turkish Industrials, and the US, owing to stock selection in US Consumer Discretionary, as mentioned, and in US IT. The Fund’s largest relative detractor was China, driven by underweight positioning in Chinese Communication Services, as mentioned, and in Chinese Consumer Discretionary.
Arrowstreet employs a quantitative benchmark-aware approach, dynamically taking overweight and underweight positions in countries, sectors, and individual stocks, with the aim of achieving long-term outperformance of its Benchmark. Arrowstreet’s core investment style seeks to outperform during a broad range of market environments.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/195254396.pdfNovember, 2022
The Fund returned 3.20%, net of fees, in November 2022, compared with a return for the Benchmark of 2.81%, with positive results in both emerging and developed markets powering index gains.
Nearly all index sectors advanced in November, with the sole exception of Energy. The largest relative sector contributors for the Fund were Industrials, driven by stock selection in Japanese Industrials, and IT, owing to stock selection in US IT and Taiwanese IT, as well as overweight positioning in the latter. Health Care was the largest relative detractor, as a result of stock selection and overweight positioning in US Health Care.
On a country basis, China and the US were both among the largest contributors to index returns. The largest relative contributors for the Fund included Turkey, as a result of overweight positioning in Turkish Energy, Turkish Consumer Discretionary and Turkish Financials, and Japan, owing to stock selection in Japanese Industrials, as mentioned. The Fund’s largest relative detractor was China, driven by underweight positioning in Chinese Consumer Discretionary and Chinese Communication Services.
Arrowstreet employs a quantitative benchmark-aware approach, dynamically taking overweight and underweight positions in countries, sectors, and individual stocks, with the aim of achieving long-term outperformance of its Benchmark. Arrowstreet’s core investment style seeks to outperform during a broad range of market environments.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/193698034.pdfOctober, 2022
The Fund returned 8.27%, net of fees, in October 2022, compared with a return for the Benchmark of 6.63%, with the MSCI AllCountry World Ex Australia Index posting its strongest monthly result since November 2020.
Most index sectors moved higher in October, led by IT and Financials. For the Fund, the largest relative sector contributors were Consumer Discretionary, owing to stock selection in US Consumer Discretionary, and Health Care, due to stock selection in US Health Care. Industrials was the largest relative detractor, driven by underweight positioning and stock selection in US Industrials.
On a country basis, the US was the largest contributor to index returns, while Chinese equities detracted. The largest relative contributor for the Fund was the US, as a result of stock selection in US Consumer Discretionary and in US Health Care, both as mentioned, while the UK was also a relative contributor, owing to stock selection and overweight positioning in UK Energy. The Fund’s largest relative detractor was China, driven by overweight positioning in Chinese Financials and in Chinese Energy.
Arrowstreet employs a quantitative benchmark-aware approach, dynamically taking overweight and underweight positions in countries, sectors, and individual stocks, with the aim of achieving long-term outperformance of its Benchmark. Arrowstreet’s core investment style seeks to outperform during a broad range of market environments.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/192527829.pdfSeptember, 2022
• The Fund returned -2.95% in September 2022, compared with a return for the Benchmark of -3.54%, with continued monetary policy tightening driving recession fears and impacting equity market sentiment.
• All market sectors again moved lower in September, with the notable exception of Health Care. The largest relative sector contributors for the Fund were Consumer Discretionary, owing to stock selection in US Consumer Discretionary, and Utilities, as a result of underweight positioning in US Utilities and stock selection in Indian Utilities. Industrials was the largest relative detractor, driven by stock selection in Japanese Industrials.
• On a country basis, select emerging markets such as Mexico, Indonesia and Brazil saw the largest gains, while the US was the largest detractor from index returns. For the Fund, the largest relative contributor was China, as a result of stock selection in Chinese Financials and underweight positioning in Chinese Consumer Discretionary, while the US was also a relative contributor, owing to stock selection in US Consumer Discretionary. The largest relative detractor was Japan, driven by stock selection in Japanese Industrials and in Japanese Consumer Discretionary.
• Arrowstreet employs a quantitative benchmark-aware approach, dynamically taking overweight and underweight positions in countries, sectors, and individual stocks, with the aim of achieving long-term outperformance of its Benchmark. Arrowstreet’s core investment style seeks to outperform during a broad range of market environments.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/191770709.pdfAugust, 2022
• The Fund returned 1.31% in August 2020, compared with a return for the Benchmark of 2.92%, with the MSCI All Country World Ex Australia Index recording its strongest month since April 2020.
• Arrowstreet employs a quantitative benchmark-aware approach, dynamically taking overweight and underweight positions in countries, sectors, and individual stocks, with the aim of achieving long-term outperformance of the Benchmark.
• Cyclical sectors, led by Consumer Discretionary and Information Technology, drove the market higher in August, while Utilities and Energy saw negative returns. Utilities was the top relative contributor for the Fund, driven by underweight positioning in US Utilities. Conversely, Information Technology was the largest sector detractor on a relative basis, driven by weak selection within US IT, as well as an overweight to South Korean IT. The Materials sector also weighed on relative returns, due to overweight positioning in Canadian Materials and Brazilian Materials.
• At a country level, developed markets such as the US, Japan, and Germany delivered strong performance during the month, while many emerging markets suffered falls, including Chile, Brazil, Turkey and Thailand. Relative to the Benchmark, the US was the largest relative detractor from the Fund’s performance in August, primarily as a result of weak selection within US IT as mentioned. Switzerland was the largest relative country contributor, owing to underweight positioning in Swiss Health Care and Swiss Consumer Staples.
• Arrowstreet’s investment approach offers several features relevant to the elevated volatility of the recent market environment; in particular, its core investment style, which seeks to outperform during a broad range of market environments, and its systematic quantitative approach, which allows Arrowstreet to react quickly through market volatility.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/157329841-2.pdfJuly, 2022
The Fund returned 2.69% in July 2022, compared with a return for the Benchmark of 5.44%, as ongoing inflation headwinds and rising interest rates globally failed to dampen an equity market resurgence.
All market sectors achieved positive returns in July, led by robust performances by IT and Consumer Discretionary. The largest relative sector detractors for the Fund were IT, owing to stock selection and underweight positioning in US IT, and Financials, as a result of overweight positioning in Chinese Financials. Communication Services was the largest relative contributor, driven by underweight positioning in Chinese Communication Services and stock selection in US Communication Services.
On a country basis, the US was the strongest contributor to index returns across the month, while Chinese equities lagged. For the Fund, the largest relative detractor was the US, as a result of stock selection and underweight positioning in US IT as mentioned, as well as stock selection in US Consumer Discretionary. Brazil was the largest relative country contributor, owing to overweight positioning in Brazilian Energy.
Arrowstreet employs a quantitative benchmark-aware approach, dynamically taking overweight and underweight positions in countries, sectors, and individual stocks, with the aim of achieving long-term outperformance of its Benchmark. Arrowstreet’s core investment style seeks to outperform during a broad range of market environments.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/189766685.pdfJune, 2022
The Fund returned -7.60% in June 2022, compared with a return for the Benchmark of -7.70%, with a lift in Chinese equities offset by wider developed and emerging market malaise in the face of ongoing inflation fears.
IT, Financials and Energy led the index lower in June, with Health Care the lone market contributor of note. For the Fund, the largest relative sector contributors were Heath Care, as a result of overweight positioning and stock selection in US Health Care, and Communication Services, owing to stock selection in US Communication Services. Energy was the largest relative detractor, driven by overweight positioning in Brazilian Energy, UK Energy, and Italian Energy.
On a country basis, the US was again the main detractor from index returns, though partially offset by a small positive contribution from Chinese equities. For the Fund, the largest relative contributor was the US, owing to stock selection in US IT and in US Consumer Discretionary, as well as overweight positioning and stock selection in US Health Care. Japan was the largest relative country detractor, driven by stock selection in Japanese IT and in Japanese Industrials, and by overweight positioning in Japanese Materials.
Arrowstreet employs a quantitative benchmark-aware approach, dynamically taking overweight and underweight positions in countries, sectors, and individual stocks, with the aim of achieving long-term outperformance of its Benchmark. Arrowstreet’s core investment style seeks to outperform during a broad range of market environments.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/188913439.pdfMay, 2022
The Fund returned 1.07% in May 2022, compared with a return for the Benchmark of -0.79%, with equity markets more sedated in contrast to recent months, despite ongoing economic headwinds.
• The Energy sector was the lone market contributor of note in May, with IT and Consumer Discretionary again leading the market lower. The largest relative sector contributors to Fund returns were Energy, as a result of overweights to French Energy and UK Energy, and IT, owing to stock selection in US IT. Financials were the largest relative detractor, driven by stock selection in US Financials and Chinese Financials.
• On a country basis, the US was the main detractor from index returns, partially offset by small positive contributions from Brazil, Germany and Japan. For the Fund, the largest relative contributor was France, due namely to overweight positioning in French Energy. China was the largest relative country detractor, driven by stock selection in Chinese Financials.
• Arrowstreet employs a quantitative benchmark-aware approach, dynamically taking overweight and underweight positions in countries, sectors, and individual stocks, with the aim of achieving long-term outperformance of its Benchmark. Arrowstreet’s core investment style seeks to outperform during a broad range of market environments, and its systematic quantitative approach allows Arrowstreet to react quickly through market volatility.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/187688882.pdfApril, 2022
• The Fund returned -4.61% in April 2022, compared with a return for the Benchmark of -7.04%, with rising interest rates and supply chain disruptions resulting from the ongoing war in Ukraine and further lockdowns in China continuing to impact market sentiment.
• The IT, Consumer Discretionary and Communication Services sectors led the market lower in April, with Consumer Staples the main contributor of note to index returns. For the Fund, Consumer Discretionary was the largest relative sector contributor to performance, owing to stock selection in US Consumer Discretionary. Energy also contributed to relative returns, resulting from an overweight to UK, French and Brazilian Energy. Materials was the largest relative detractor, driven by stock selection in UK and French Materials.
• On a country basis, the US was among the largest detractors for the index in April, with US equities impacted by a decline in confidence resulting from an aggressive monetary response to rising inflation. The Fund’s largest relative detractor was Japan, predominantly due to stock selection in Japanese IT. The US was the largest relative country contributor, driven by stock selection and underweight positioning in US Consumer Discretionary and IT.
• As at 30 April 2022, the Arrowstreet Global Equity Fund’s exposure to Russia constituted 0.09% of the Fund. The Responsible Entity continues to closely monitor the market situation to ensure an appropriate valuation is applied to these holdings.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/186801837.pdfMarch, 2022
The Fund returned -2.14% in March 2022, compared with a return for the Benchmark of -1.44%, with the conflict between Russia and Ukraine and renewed lockdowns in China impacting overall market sentiment.
• The Financials and Communication Services sectors led the market lower in March, with Health Care the main contributor of note to index returns. The Fund's largest relative sector detractor was Energy, driven by stock selection and overweight positioning in Russian Energy. Financials also detracted from relative returns, owing to stock selection in Russian Financials. Consumer Staples was the largest relative contributor, driven by stock selection in US Consumer Staples.
• On a country basis, China was the largest detractor for the index in March, with Chinese equities impacted by regulatory concerns and the country's strict Covid control measures. The Fund's largest relative detractor was Russia, due to stock selection and overweight positioning in Russian Energy, and stock selection in Russian Financials, both as mentioned. China was the largest relative country contributor, driven by underweight positioning in Chinese Consumer Discretionary and Chinese Communication Services. Japan also made a notable positive contribution, as a result of stock selection in Japanese Industrials and Japanese IT.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/185154457.pdfFebruary, 2022
The Fund returned -3.18% in February 2022, compared with a return for the Benchmark of -2.70%, with market sentiment impacted by the economic uncertainty surrounding the conflict between Russia and Ukraine.
• All market sectors moved lower in February, with IT and Consumer Discretionary detracting most from index returns. For the Fund, Energy was the largest relative sector detractor, driven by overweight positioning in Russian Energy. Financials also detracted from relative returns, owing to overweight positioning in Russian Financials. Materials was the largest relative contributor, driven by overweight positioning in UK Materials, and overweight positioning and stock selection in Brazilian Materials. • The US was the largest country detractor for the index in February, while several emerging markets, such as Brazil and South Africa, made modest positive contributions. The Fund’s largest relative detractor was Russia, due to overweight positioning in Russian Energy and Russian Financials, both as mentioned. Brazil was the largest relative country contributor, driven by overweight positioning and stock selection in Brazilian Materials, as mentioned. A further relative contributor was the US, owing to stock selection in US Communication Services and US Financials.
• The Arrowstreet Global Equity Fund’s exposure to Russia as at 28 February 2022, shortly following the halting of equity trading in the country, was 1.48%. These positions have since been revalued by the Responsible Entity and as at 8 March 2022 constituted 0.04% of the Fund. The Responsible Entity will continue to closely monitor the situation to ensure an appropriate valuation is applied to these holdings.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/185018976.pdfJanuary, 2022
The Fund returned -1.72% in January 2022, compared with a return for the Benchmark of -1.80%, with the impending arrival of higher interest rates driving a market rotation from growth to value, and impacting overall market performance.
• January saw a significant sector rotation in equity markets, with the growth-oriented IT and Health Care sectors declining, in favour of value-oriented Financials and Energy. For the Fund, Energy was the largest relative sector contributor to performance, owing to overweight positioning in UK Energy and French Energy. Materials also contributed to relative returns, as a result of stock selection and overweight positioning in UK Materials. IT was the largest relative detractor, driven by overweight positioning and stock selection in Japanese IT.
• The UK was the market’s largest country contributor in January, while the US was the largest detractor from index returns. The Fund’s largest relative country contributor was also the UK, driven by overweight positioning in UK Energy, and stock selection and overweight positioning in UK Materials, both as mentioned. A further relative contributor was Brazil, owing to overweight positioning in Brazilian Energy. Japan was the Fund’s largest relative detractor, due to overweight positioning and stock selection in Japanese IT, as mentioned.
• Arrowstreet employs a quantitative benchmark-aware approach, dynamically taking overweight and underweight positions in countries, sectors, and individual stocks, with the aim of achieving long-term outperformance of its Benchmark. Arrowstreet’s core investment style seeks to outperform during a broad range of market environments, and its systematic quantitative approach allows Arrowstreet to react quickly through market volatility.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/183936916.pdfDecember, 2021
The Fund returned 2.43% in December 2021, compared with a return for the Benchmark of 1.41%, with a robust ‘Santa rally’ masking ongoing market concerns over the spread of the Omicron COVID variant.
• Against an increasingly volatile market backdrop, defensive sectors saw the largest gains in December, particularly Consumer Staples and Utilities. For the Fund, Information Technology was the largest relative sector contributor to performance, owing to stock selection in US IT and overweight positioning in South Korean IT. Consumer Staples was the largest relative detractor, driven by stock selection in US Consumer Staples.
• The US was again the market’s largest country contributor in December, while China was a notable detractor from index returns. The Fund’s largest relative country contributor was also the US, driven by stock selection in US IT, as mentioned, and in US Consumer Discretionary. China was an additional relative contributor of note, owing to underweight positioning in Chinese Consumer Discretionary. Russia was the largest relative detractor, due to overweight positioning in Russian Financials.
• Arrowstreet employs a quantitative benchmark-aware approach, dynamically taking overweight and underweight positions in countries, sectors, and individual stocks, with the aim of achieving long-term outperformance of its Benchmark. Arrowstreet’s core investment style seeks to outperform during a broad range of market environments, and its systematic quantitative approach allows Arrowstreet to react quickly through market volatility
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/182477716.pdfNovember, 2021
The Fund returned -0.13% in October 2021, compared with a return for the Benchmark of 1.10%, with equity market sentiment unhampered by higher inflation and changes in the monetary policy environment.
• Sector performance was mixed in October, with Consumer Discretionary and Information Technology leading the overall market higher. For the Fund, Communication Services was the largest relative sector contributor to performance, owing to stock selection and underweight positioning in US Communication Services. Consumer Discretionary was the largest relative detractor, as a result of stock selection and underweight positioning in US Consumer Discretionary.
• The US and Canada were the largest country contributors to benchmark performance in October, while Japanese and South Korean equities detracted most from index returns. The Fund’s largest relative country contributor was the Netherlands, driven by overweight positioning in Dutch IT. Japan was the largest relative detractor, due to overweight positioning in Japanese IT, Japanese Industrials and Japanese Materials. The US was also a notable relative detractor, owing to stock selection and underweight positioning in US Consumer Discretionary, as mentioned, and stock selection in US Financials.
• Arrowstreet employs a quantitative benchmark-aware approach, dynamically taking overweight and underweight positions in countries, sectors, and individual stocks, with the aim of achieving long-term outperformance of its Benchmark. Arrowstreet’s core investment style seeks to outperform during a broad range of market environments, and its systematic quantitative approach allows Arrowstreet to react quickly through market volatility
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/181055808.pdfOctober, 2021
The Fund returned 3.69% in October 2021, compared with a return for the Benchmark of 4.85%, with equity market sentiment unhampered by higher inflation and changes in the monetary policy environment. • Sector performance was mixed in October, with Consumer Discretionary and Information Technology leading the overall market higher. For the Fund, Communication Services was the largest relative sector contributor to performance, owing to stock selection and underweight positioning in US Communication Services. Consumer Discretionary was the largest relative detractor, as a result of stock selection and underweight positioning in US Consumer Discretionary.
• The US and Canada were the largest country contributors to benchmark performance in October, while Japanese and South Korean equities detracted most from index returns. The Fund’s largest relative country contributor was the Netherlands, driven by overweight positioning in Dutch IT. Japan was the largest relative detractor, due to overweight positioning in Japanese IT, Japanese Industrials and Japanese Materials. The US was also a notable relative detractor, owing to stock selection and underweight positioning in US Consumer Discretionary, as mentioned, and stock selection in US Financials.
• Arrowstreet employs a quantitative benchmark-aware approach, dynamically taking overweight and underweight positions in countries, sectors, and individual stocks, with the aim of achieving long-term outperformance of its Benchmark. Arrowstreet’s core investment style seeks to outperform during a broad range of market environments, and its systematic quantitative approach allows Arrowstreet to react quickly through market volatility
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/181053444.pdfSeptember, 2021
The Fund returned -2.25% in September 2021, compared with a return for the Benchmark of -3.02%, with equity markets impacted by investor concerns around inflation and weakness among the Chinese property developers.
• All GICS market sectors made negative contributions to benchmark performance in September, except for a revived Energy sector. Energy was also the largest relative sector contributor to Fund performance, owing to overweight positioning in Russian Energy and Italian Energy. Materials was the largest relative detractor, primarily as a result of overweight positioning in Brazilian Materials.
• The US was the largest country detractor from benchmark performance in September, while Japanese equities made a modest contribution to index returns. The Fund’s largest relative country contributor was Japan, driven by overweight positioning in Japanese Financials and Japanese IT. Russia was also a notable relative contributor, owing to overweight positioning in Russian Energy and in Russian Financials. Brazil was the largest relative detractor, as a result of overweight positioning in Brazilian Materials.
• Arrowstreet employs a quantitative benchmark-aware approach, dynamically taking overweight and underweight positions in countries, sectors, and individual stocks, with the aim of achieving long-term outperformance of its Benchmark. Arrowstreet’s core investment style seeks to outperform during a broad range of market environments, and its systematic quantitative approach allows Arrowstreet to react quickly through market volatility
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/179967982.pdfAugust, 2021
The Fund returned 2.14% in August 2021, compared with a return for the Benchmark of 2.62%, with global equity markets delivering another month of gains, across all market sectors.
• All GICS sectors made positive contributions to benchmark performance in August, with Financials and IT recording the largest gains. Industrials was the largest relative sector contributor to Fund performance, owing to underweight positioning in US Industrials. Materials was the largest relative detractor, as a result of overweight positioning and stock selection in both Brazilian Materials and UK Materials.
• The US was the largest country contributor to benchmark performance for another consecutive month, while South Korea and Brazil were minor detractors from index returns. The Fund’s largest relative country contributor was China, driven by underweight positioning in Chinese Consumer Discretionary and Chinese Health Care. The US was the largest relative detractor, owing to stock selection in US Consumer Discretionary and US Financials. Brazil was also a notable relative detractor, primarily as a result of overweight positioning and stock selection in Brazilian Materials, as mentioned.
• Arrowstreet employs a quantitative benchmark-aware approach, dynamically taking overweight and underweight positions in countries, sectors, and individual stocks, with the aim of achieving long-term outperformance of its Benchmark. Arrowstreet’s core investment style seeks to outperform during a broad range of market environments, and its systematic quantitative approach allows Arrowstreet to react quickly through market volatility
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/178792970.pdfJuly, 2021
The Fund returned 3.19% in July 2021, compared with a return for the Benchmark of 2.88%, as the growth-oriented technology and health care sectors saw continued momentum across the month.
• Most GICS sectors made positive contributions to benchmark performance in July, with the exceptions of Energy and the Consumer Discretionary sector. Consumer Discretionary was the largest relative contributor to the Fund’s performance, owing to positive selection in US Consumer Discretionary and underweight positioning in Chinese Consumer Discretionary. IT was the largest relative sector detractor, as a result of stock selection in Japanese IT.
• The US was again the largest country contributor by a significant margin to benchmark performance, while the main country detractor for the benchmark was China. The Fund’s largest relative contributor was China, driven by underweight positioning in Chinese Consumer Discretionary, as mentioned. Taiwan was the largest relative country detractor, owing to overweight positioning in Taiwanese Industrials.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/175738506.pdfJune, 2021
The Fund returned 3.73% in June 2021, compared with a return for the Benchmark of 4.52%, as falling concerns over higher inflation drove a strong rebound in the growth-oriented technology sector.
• Most GICS sectors made positive contributions to benchmark performance in June, with the exceptions of Financials and Materials. Industrials was the largest relative contributor to the Fund’s performance, owing to overweight positioning in Taiwanese Industrials and underweight positioning in US Industrials. IT was the largest relative sector detractor, as a result of stock selection in US IT.
• The US was the largest country contributor by a significant margin to benchmark performance, while there were only a few slight detractors, including South Africa and Spain. The Fund’s largest relative contributor was Taiwan, driven by overweight positioning in Taiwanese Industrials, as mentioned. Japan was the largest relative country detractor, owing to overweight positioning in Japanese Financials and in Japanese Materials.
• Arrowstreet employs a quantitative benchmark-aware approach, dynamically taking overweight and underweight positions in countries, sectors, and individual stocks, with the aim of achieving long-term outperformance of its Benchmark. Arrowstreet’s core investment style seeks to outperform during a broad range of market environments, and its systematic quantitative approach allows Arrowstreet to react quickly through market volatility.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/174342103.pdfMay, 2021
The Fund returned 1.48% in May 2021, compared with a return for the Benchmark of 1.31%, with investor enthusiasm around a strong global macroeconomic backdrop driving equity markets higher.
• Most GICS sectors were higher in May, with cyclical sectors including Financials and Industrials making the largest contributions to benchmark performance. For the Fund, Consumer Discretionary was the largest relative contributor, owing to positive selection in US Consumer Discretionary. Financials was the largest relative sector detractor, as a result of underweight positioning in Canadian Financials and stock selection in US Financials.
• Canada, the UK, France and the US were the leading country contributors to benchmark performance, while Taiwan and Hong Kong were slight detractors. The Fund’s largest relative contributor was the US, driven by position selection in US Consumer Discretionary, as mentioned, and in US Information Technology. Brazil was the largest relative detractor, owing to overweight positioning and stock selection in Brazilian Materials
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/173009859.pdfApril, 2021
The Fund returned 2.34% in April 2021, compared with a return for the Benchmark of 2.90%, as equity markets posted another strong result driven by investor optimism around a stimulus-driven economic recovery.
• With the exception of Energy, all GICS sectors were higher in April, with Information Technology, Communication Services and Financials making the largest contributions to benchmark performance. Communication Services was the Fund’s top relative contributor, owing to positive selection and overweight positioning in US Communication Services. Information Technology was again the largest relative sector detractor for the Fund, as a result of stock selection in US IT and overweight positioning in South Korean IT.
• Key developed markets, including the US, France and the UK were positive for the month, while Japan was the largest detractor from benchmark performance. For the Fund, the largest relative country contributor was China, driven by underweight positioning in Chinese Financials and in Chinese Consumer Discretionary. Japan was the largest relative detractor, as a result of overweight positioning and stock selection in Japanese Financials, as well as overweight positioning and stock selection in Japanese Materials.
• Arrowstreet employs a quantitative benchmark-aware approach, dynamically taking overweight and underweight positions in countries, sectors, and individual stocks, with the aim of achieving long-term outperformance of the Benchmark. Arrowstreet’s core investment style seeks to outperform during a broad range of market environments, and its systematic quantitative approach allows Arrowstreet to react quickly through market volatility
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/171427512.pdfFebruary, 2021
The Fund returned 4.91% in February 2021, compared with a return for the Benchmark of 2.42%, with a strong cyclical sector rebound driving global equities higher across the month.
• Cyclical sectors, such as Energy and Financials, were the strongest performers in February, driven by improving investor confidence around the impact of government stimulus measures globally and the vaccine rollout. Consumer Discretionary was the top relative contributor for the Fund, owing to positive selection in US Consumer Discretionary, while Information Technology also made a positive relative contribution, driven by positive selection in US IT. Financials was the largest relative sector detractor of note, as a result of underweight positioning and weak selection in US Financials.
• Key developed markets were positive for the month, but key Asian markets such as China and South Korea moved lower. For the Fund, the largest relative contributor at a country level was again the US, driven by positive selection in US IT and US Consumer Discretionary, as mentioned. The UK was also a strong relative contributor, mostly as a result of overweight positioning in UK Materials. Japan was a small detractor for the Fund, primarily due to slightly overweight positioning in Japanese Health Care.
• Arrowstreet employs a quantitative benchmark-aware approach, dynamically taking overweight and underweight positions in countries, sectors, and individual stocks, with the aim of achieving long-term outperformance of the Benchmark. Arrowstreet’s core investment style seeks to outperform during a broad range of market environments, and its systematic quantitative approach allows Arrowstreet to react quickly through market volatility
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/167980616.pdfJanuary, 2021
The Fund returned 1.81% in January 2021, compared with a return for the Benchmark of -0.21%, with global equities recording a relatively subdued start to the year against a backdrop of economic uncertainty.
• Sector returns were mixed in January, with the Energy sector moving higher as oil prices climbed across the month, while the Consumer Staples sector lagged. Information Technology was the top relative contributor for the Fund, owing to positive selection in US IT. Financials also contributed positively to performance on a relative basis, driven by positive selection in Hong Kong Financials. There were no relative sector detractors for the month.
• Most regions were flat for the month, with the notable exceptions of the US, which moved lower, and a positive result in China. For the Fund, the largest relative contributor at a country level was the US, driven by positive selection in US IT, as mentioned, as well as positive selection in US Communication Services. Italy was also a notable relative contributor, mostly as a result of positive selection in Italian Consumer Discretionary. France was the largest relative detractor, primarily due to weak selection in French Consumer Discretionary.
• Arrowstreet employs a quantitative benchmark-aware approach, dynamically taking overweight and underweight positions in countries, sectors, and individual stocks, with the aim of achieving long-term outperformance of the Benchmark. Arrowstreet’s core investment style seeks to outperform during a broad range of market environments, and its systematic quantitative approach allows Arrowstreet to react quickly through market volatility
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/165061008.pdfDecember, 2020
• The Fund returned 1.82% in December 2020, compared with a return for the Benchmark of -0.10%, with a rising Australian dollar offsetting what proved to be another strong month for global equities.
• Sector returns were mixed in December, with Information Technology, Materials and Financials moving higher, while Real Estate, Utilities, and Industrials declined. Materials was the top relative contributor for the Fund, driven by overweight positioning and positive selection in Russian Materials. Information Technology was also a positive relative contributor, owing to an overweight to South Korean IT. Consumer Staples was the Fund’s largest relative detractor, driven by negative selection in US Consumer Staples.
• Regional returns also varied, with the US and Japan moving lower, while emerging markets, including South Korea, India and Brazil, contributed positively to returns. The Fund’s largest relative contributor at a country level was the US, driven by positive selection and underweight positioning in US Health Care. South Korea also contributed positively on a relative basis, as a result of overweight positioning in South Korean IT, as mentioned. China was the largest relative detractor, owing to underweight positioning in Chinese Health Care and Chinese IT.
• Arrowstreet employs a quantitative benchmark-aware approach, dynamically taking overweight and underweight positions in countries, sectors, and individual stocks, with the aim of achieving long-term outperformance of the Benchmark. Arrowstreet’s core investment style seeks to outperform during a broad range of market environments, and its systematic quantitative approach allows Arrowstreet to react quickly through market volatility.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/AROF_FR-1-2.pdfNovember, 2020
• The Fund returned 13.10% in November 2020, compared with a return for the Benchmark of 11.02%, with growing optimism over the deployment of a COVID-19 vaccine driving the MSCI ACWI ex Australia to its strongest monthly return in unhedged terms since May 2013.
• All market sectors rose in November on the back of vaccine optimism, led by Energy and Financials; the returns of defensive sectors though, such as Utilities and Consumer Staples, were more muted. For the Fund, Information Technology was the top relative contributor, driven by positive selection in US IT and overweight positioning in South Korean IT. Utilities was also a positive relative contributor, driven by an underweight to US Utilities. Financials was the largest sector detractor on a relative basis, driven by underweight positioning in French Financials and Canadian Financials.
• Most regions moved higher in November, led by key European markets, including France, Germany, and the UK. The Fund’s largest relative contributor at a country level was the US, driven by positive selection in US IT, as mentioned. Hong Kong was also a positive country contributor on a relative basis, owing to an underweight to Hong Kong Consumer Discretionary. France was the largest relative detractor, owing to underweight positioning in French Financials, as mentioned, as well as an underweight to French Industrials.
• Arrowstreet employs a quantitative benchmark-aware approach, dynamically taking overweight and underweight positions in countries, sectors, and individual stocks, with the aim of achieving long-term outperformance of the Benchmark. Arrowstreet’s core investment style seeks to outperform during a broad range of market environments, and its systematic quantitative approach allows Arrowstreet to react quickly through market volatility
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/162268413.pdfOctober, 2020
• The Fund returned -0.10% in October 2020, compared with a return for the Benchmark of -0.46%, with the divergence in Asian market performance from the US and Europe leading to a slightly negative result overall. • Most market sectors saw declines in October, including Energy, following a further fall in oil prices, and the Health Care sector; Utilities and Communication Services moved higher. For the Fund, Information Technology was the top relative contributor, driven by positive selection in US IT and underweight positioning in German IT. Consumer Staples was also a positive relative contributor, driven by positive selection in US Consumer Staples. Utilities was the largest sector detractor on a relative basis, driven by underweight positioning in US Utilities. • At a country level, European markets, including Germany, the UK and Switzerland, moved lower as COVID-19 cases in the region soared, while the Asian region again outperformed, led by China, Taiwan and South Korea. The US was the Fund’s largest relative contributor, driven by positive selection in both US Consumer Discretionary and US IT. China was the largest relative detractor, owing to underweight positioning in Chinese Communication Services and Chinese Consumer Discretionary.
• Arrowstreet employs a quantitative benchmark-aware approach, dynamically taking overweight and underweight positions in countries, sectors, and individual stocks, with the aim of achieving long-term outperformance of the Benchmark. Arrowstreet’s core investment style seeks to outperform during a broad range of market environments, and its systematic quantitative approach allows Arrowstreet to react quickly through market volatility.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/160483270-1.pdfSeptember, 2020
The Fund returned 1.31% in August 2020, compared with a return for the Benchmark of 2.92%, with the MSCI All Country World Ex Australia Index recording its strongest month since April 2020. • Arrowstreet employs a quantitative benchmark-aware approach, dynamically taking overweight and underweight positions in countries, sectors, and individual stocks, with the aim of achieving long-term outperformance of the Benchmark. • Cyclical sectors, led by Consumer Discretionary and Information Technology, drove the market higher in August, while Utilities and Energy saw negative returns. Utilities was the top relative contributor for the Fund, driven by underweight positioning in US Utilities. Conversely, Information Technology was the largest sector detractor on a relative basis, driven by weak selection within US IT, as well as an overweight to South Korean IT. The Materials sector also weighed on relative returns, due to overweight positioning in Canadian Materials and Brazilian Materials. • At a country level, developed markets such as the US, Japan, and Germany delivered strong performance during the month, while many emerging markets suffered falls, including Chile, Brazil, Turkey and Thailand. Relative to the Benchmark, the US was the largest relative detractor from the Fund’s performance in August, primarily as a result of weak selection within US IT as mentioned. Switzerland was the largest relative country contributor, owing to underweight positioning in Swiss Health Care and Swiss Consumer Staples. • Arrowstreet’s investment approach offers several features relevant to the elevated volatility of the recent market environment; in particular, its core investment style, which seeks to outperform during a broad range of market environments, and its systematic quantitative approach, which allows Arrowstreet to react quickly through market volatility.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/157329841-1.pdfticker: MAQ0464AU
commentary_block: Array
factsheet_url:
if can’t get above get from below
release_schedule:
fund_features:
Arrowstreet Global Equity Fund provides exposure to a diversified portfolio of global equities which may include securities listed in emerging markets as well as securities of small capitalisation companies.
- Actively managed using a quantitative approach and stock selection modelling to evaluate securities on an integrated basis to exploit tactical opportunities across different factors with the aim of controlling risk relative to the Benchmark and maximising the likelihood of outperforming the Benchmark.
- 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).
-
Macquarie substantially hedge the fund’s exposure to international assets back to Australian dollars.
manager_contact_details: Array
asset_class: Foreign Equity
asset_category: Large Blend - Quantitative
peer_benchmark: Foreign Equity - Large Quantitative Index
broad_market_index: Developed -World Index
structure: Managed Fund