Combining investment intuition with rigorous quantitative research

 

What the Arrowstreet Global Equity Fund offers

Broad global exposure

To developed and emerging market equities

Quantitative Investment approach

Based on fundamental investment principles

Potential for higher long-term returns, while controlling risk

Benchmark-aware strategy with the potential for higher long-term returns, while avoiding long-term style biases

All investments carry risk. Different investments carry different levels of risk, depending on the investment strategy and the underlying assets. Generally, the higher the potential return of an investment, the greater the risk.

The risks of investing in this fund include:

  • Investment risk: The fund has exposure to share markets. The risk of an investment in the fund is higher than an investment in a typical bank account or fixed income investment. Amounts distributed to unitholders may fluctuate, as may the fund's unit price. The unit price may vary by material amounts, even over short periods of time, including during the period between a redemption request being made and the time the redemption unit price is calculated.
  • Market risk: Share markets can be volatile, and have the potential to fall by large amounts over short periods of time. The investments of the fund are likely to have a broad correlation with share markets in general, and hence poor performance or losses in domestic and/or global share markets are likely to impact negatively on the overall performance of the fund.
  • International investments risk: The fund invests in a range of international securities, and in companies that have exposure to a range of international economies. Global and country specific macroeconomic factors may impact the fund’s international investments. Governments may intervene in markets, industries, and companies; may alter tax and legal regimes; and may act to prevent or limit the repatriation of foreign capital. Such interventions may impact the fund’s international investments.

For a full description of the risks of investing in the fund, you should read the Product Disclosure Statement before deciding to invest. 

Arrowstreet - a different approach

A non-random walk down Arrowstreet

Since its launch, the Arrowstreet name has become associated with serious investment insight, expertise and success. The firm is considered one of the leading lights not only within quantitative investment management, but across the world of active investment management.

This article provides an insight into Arrowstreet’s philosophy and approach to quantitative investing.

Detailed fund information

Arrowstreet Capital, Limited Partnership (Arrowstreet) is based in Boston, Massachusetts. It was founded in June 1999 and is wholly-owned by its senior management and non-executive directors.

The Arrowstreet Global Equity Fund aims to achieve a long-term total return (before fees and expenses) that exceeds the MSCI All Country World ex Australia Index, in $A unhedged with net dividends reinvested (Benchmark).

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

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

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

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

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

Management fee: 1.28% pa (of net asset value of fund and inclusive of GST)

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

Generally semi-annually

  • Lonsec1 – Highly recommended
  • Zenith2 – Highly recommended
  • Morningstar3 – five star Morningstar RatingTM (quantitative rating)
  • Morningstar3 – Silver Morningstar Analyst RatingTM (qualitative rating)

These reports are only available to licensed financial advisers on request. Please contact your local BDM.

Available on:

  • AMP Advantage
  • AMP Flexible Lifetime
  • AMP Personalised Portfolio Service
  • Australian Executor Trustees
  • BT Panorama
  • BT Wrap
  • Colonial FirstWrap
  • Experts Choice
  • Federation
  • FirstWrap
  • GrowWrap
  • Hub 24
  • IOOF Pursuit
  • Macquarie Accumulator
  • Macquarie Wrap
  • MLC Wrap
  • MyNorth
  • Netwealth
  • North
  • Oasis
  • Onepath OneAnswer
  • PortfolioCare
  • uXchange 

You can also choose to invest in a hedged version of the fund. Macquarie will use currency hedging to reduce the fund's exposure to foreign currency movements. Download the product documents.

Product Disclosure Statement

Information Booklet

Application Form

Latest performance flyer

Awards and recognition

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

  • Winner – Best International Share Fund – Money magazine Best of the Best Awards 2017
  • Winner – Best International Share Fund – Money magazine Best of the Best Awards 2016
  • Winner – Best Global Equities Fund (Broad Cap) – Lonsec/Money Management Fund Manager of the Year Awards 2015
  • Winner – Best Global Equities Fund (Broad Cap) – Lonsec/Money Management Fund Manager of the Year Awards 2014
  • Winner – Best International Equities (Global Category) – Professional Planner/Zenith Fund Awards 20143
  • Winner – International Large Cap Fund of the Year – Smart Investor Blue Ribbon Awards 2014.

Find out how we can help


If you'd like to speak to a Macquarie Business Development Manager about how we can help, get in touch.