September, 2023
• The Fund returned -1.14%, net of fees, in September 2023, compared with a return for the Benchmark of -3.82%.
• 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/2021/02/Arrowstreet-Global-Equity-Fund-Performance-Report-PRRP-AGEF-ANZ-2-1.pdfAugust, 2023
• The Fund returned 1.97%, net of fees, in August 2023, compared with a return for the Benchmark of 1.17%.
• 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/2021/02/Arrowstreet-Global-Equity-Fund-Performance-Report-PRRP-AGEF-ANZ-1-1.pdfJuly, 2023
• The Fund returned 2.16%, net of fees, in July 2023, compared with a return for the Benchmark of 2.39%.
• 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/2021/02/Arrowstreet-Global-Equity-Fund-Performance-Report-PRRP-AGEF-ANZ-4.pdfJune, 2023
• The Fund returned 2.83%, net of fees, in June 2023, compared with a return for the Benchmark of 2.88%.
• 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/2021/02/Arrowstreet-Global-Equity-Fund-Performance-Report-PRRP-AGEF-ANZ-3.pdfMay, 2023
Performance summary:
• The Fund returned 1.32%, net of fees, in May 2023, compared with a return for the Benchmark of 1.10%.
• 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.
April, 2023
• The Fund returned 3.99%, net of fees, in April 2023, compared with a return for the Benchmark of 2.83%.
• The Financials, Health Care and Consumer Staples sectors made the largest contributions to index returns amid a broad-based rally
in April. For the Fund, the largest relative sector contributors were Consumer Discretionary, as a result of stock selection in US
Consumer Discretionary and underweight positioning in Chinese Consumer Discretionary, and Energy, owing to overweight
positioning in Brazilian Energy, UK Energy and French Energy. Materials was the largest relative detractor, as a result of stock
selection and overweight positioning in UK Materials.
• On a country basis, equity markets in the US, UK, France and Switzerland all drove gains for the index. The largest relative
contributors to the Fund included the US, driven by stock selection in US Consumer Discretionary and US Health Care, and China,
owing to underweight positioning in Chinese Consumer Discretionary and overweight positioning in Chinese Financials. Turkey was
the largest relative detractor, as a result of overweight positioning and stock selection in Turkish 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 its Benchmark. Arrowstreet’s core
investment style seeks to outperform during a broad range of market environments.
March, 2023
The Fund returned 2.29%, net of fees, in March 2023, compared with a return for the Benchmark of 3.87%.
With the notable exception of Financials, most index sectors advanced in March, with IT and Communication Services the largest contributors. For the Fund, the largest relative sector detractors were Energy, as a result of overweight positioning in UK Energy and French Energy, and Consumer Discretionary, owing to stock selection in US Consumer Discretionary. IT was the largest relative contributor, as a result of overweight positioning in South Korean IT and US IT.
On a country basis, the US again made the largest contribution to index returns. The largest relative detractors from the Fund included France, driven by overweight positioning in French Energy and French Financials, and Japan, owing to overweight positioning in Japanese Financials. Canada was the largest relative contributor, as a result of underweight positioning in Canadian Financials and stock selection in Canadian 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/2021/02/Arrowstreet-Global-Equity-Fund-Performance-Report-PRRP-AGEF-ANZ-1.pdfFebruary, 2023
• The Fund returned 2.36%, net of fees, in February 2023, compared with a return for the Benchmark of 1.58%, with both developed and emerging markets remaining unsettled by an uncertain economic outlook.
• Most index sectors moved higher across the month, with IT and Industrials recording the largest gains. The largest relative sector contributors to the Fund were Energy, driven by overweight positioning in UK Energy and underweight positioning in US Energy, and Consumer Discretionary, owing to underweight positioning in Chinese Consumer Discretionary. IT was the largest relative detractor, as a result of stock selection in US IT.
• On a country basis, the US was again among the largest contributors to index returns, while China was the only noteworthy detractor. For the Fund, the largest relative contributors were Japan, driven by stock selection in Japanese Industrials; China, owing to underweight positioning in Chinese Consumer Discretionary; and Turkey, due to overweight positioning in Turkish Industrials. The US was the largest relative detractor from the Fund, as a result of stock selection in US 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/2021/02/Arrowstreet-Global-Equity-Fund-Performance-Report-PRRP-AGEF-ANZ.pdfDecember, 2022
• The Fund returned -4.50%, net of fees, in December 2022, compared with a return for the Benchmark of -5.17%; 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.
November, 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.
October, 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.
September, 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/2021/02/191770709.pdfAugust, 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.
July, 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/2021/02/189766685.pdfJune, 2022
The Fund returned -4.17% in June 2022, compared with a return for the Benchmark of -4.40%, 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/2021/02/188915114.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/2021/02/187688882.pdfApril, 2022
The Fund returned -0.40% in April 2022, compared with a return for the Benchmark of -2.83%, 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. • 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/2021/02/186801514.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.
• As at 31 March 2022, the Arrowstreet Global Equity Fund's exposure to Russia constituted 0.07% of the Fund. The Responsible Entity continues to closely monitor the market situation to ensure an appropriate valuation is applied to these holdings. • 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/2021/02/185944557.pdfFebruary, 2022
The Fund returned -5.96% in February 2022, compared with a return for the Benchmark of -5.56%, 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/2021/02/185018991.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.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/183936916.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.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/182477716.pdfNovember, 2021
The Fund returned 3.73% in November 2021, compared with a return for the Benchmark of 3.46%, with negative sentiment surrounding the emergence of the Omicron COVID variant impacting equity markets.
• Most sectors made positive contributions to index returns in November, led by Information Technology and Consumer Discretionary. For the Fund, Information Technology was the largest relative sector contributor to performance, owing to stock selection and overweight positioning in Japanese IT and overweight positioning in US IT. Energy was the largest relative detractor, as a result of overweight positioning in Russian Energy and in UK Energy.
• The US was the largest country contributor to index performance in November, while emerging markets such as Argentina, Turkey and Russia saw the weakest returns. The Fund’s largest relative country contributor was the US, driven by the aforementioned overweight positioning in US IT. Japan was also a notable relative contributor, owing to stock selection and overweight positioning in Japanese IT, as mentioned, and stock selection in Japanese Materials. Russia was the largest relative detractor, due to overweight positioning in Russian Energy, as mentioned, and 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/2021/02/181822067.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/2021/02/180199520.pdfAugust, 2021
The Fund returned 2.49% in August 2021, compared with a return for the Benchmark of 3.11%, 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.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/178795572.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/2021/02/175738506.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/2021/02/174342103.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/2021/02/173009859.pdfJanuary, 2021
• The Fund returned 2.40% in January 2021, compared with a return for the Benchmark of 0.11%, 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/2021/02/165061123.pdfasset_class: Foreign Equity
asset_category: Large Blend - Quantitative
peer_benchmark: Foreign Equity - Large Quantitative Index
broad_market_index: Developed -World Index
manager_contact_details: Array
ticker: MAQ0464AU
release_schedule: Monthly
commentary_block: Array
factsheet_url:
https://www.macquarieim.com/investments/global-equities/arrowstreet-global-equity-fund#resources
Under RESOURCES
fund_features:
Arrowstreet Global Equity 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). Arrowstreet employs a fully quantitative investment management approach and subscribes to a core investment style. The Manager has noted that over the short term the Fund may exhibit either value or growth traits depending on the prevailing market conditions, however over the long term this should even out to be core or style neutral.
structure: Managed Fund