The 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 by investing indirectly in the Arrowstreet Global Equity Fund (Underlying Fund).

The 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 hedged with net dividends reinvested (Benchmark)

Benefits of investing in the Arrowstreet Global Equity Fund (Hedged)

• Potential for higher long-term returns than the Benchmark.

• Potential for exploiting multiple sources of returns and outperforming the Benchmark across various market conditions.

•  Access to the knowledge and investment expertise of Arrowstreet through the Fund’s investment in the Underlying Fund

The Fund may be suitable for investors who are looking for an investment with the objective of the Fund listed above and are prepared to accept the risks of the Fund. 

About the Fund

The 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 by investing indirectly in the Arrowstreet Global Equity Fund (Underlying Fund). The Underlying Fund will not invest in tobacco' securities as defined by Global Industry Classification Standards (GICS) and controversial weapon' securities as defined by MSCI, Inc.

The Underlying Fund is 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 its Benchmark and maximising the likelihood of outperforming the Benchmark.

Significant features

• Provides exposure to a diversified portfolio of global equities which may include emerging markets as well as securities of small capitalisation companies by investing indirectly in the Arrowstreet Global Equity Fund (Underlying Fund). The Fund has no exposure to ‘tobacco’ securities as defined by the Global Industry Classification Standard (GICS®) or ‘controversial weapons’ securities as defined by MSCI, Inc.
• Provides exposure to an actively managed strategy using a quantitative approach and stock selection modelling to evaluate securities on an integrated basis to exploit tactical opportunities across different factors to maximise returns with the aim of controlling risk relative to the Benchmark.
• Reduced exposure to foreign currency movements for Australian investors through currency hedging.

How we invest your money

Arrowstreet's stock selection models are designed to:

• Understand what information is likely to impact stock prices and obtain the information to forecast individual stock returns by evaluating a stock’s potential on the basis of a diverse set of direct and indirect effects, and
• Identify particular signals or segments of the market that exhibit the greatest mispricing (or inefficiencies) at any point in time.

Asset allocation

• Global equities: 95%-100%

• Cash: 0%-5%

The Fund uses derivatives for hedging purposes. The Underlying Fund may also use derivatives to manage currency risk arising from differences in currency weights of the Underlying Fund's investments compared to currency weights of securities that make up the Benchmark. The Fund's exposure to foreign currencies is hedged by the Investment Manager back to Australian dollars.