Russell Jadwa World Equity Fund:
The Jadwa World Equity Fund invests in the World Equity Fund of Russell Jadwa Shariah Based Fund plc, which is a multi-manager fund managed in compliance with the Shariah guidelines of its Shariah Board..
Why invest in World Equities?
Return: Allows for investment in the broadest possible range of companies and industries, including opportunities to profit from industries that may be under-represented in your domestic equity market.
Risk: Diversification benefits for investors with local or regional investments.
Outperformance: Compared to a regional approach to investment, ability to select the best companies across all countries gives managers maximum flexibility to find great investment opportunities.
The Multi-Style Fund Managers:
The following Fund Managers have been selected from the range of global equity managers ranked by Russell’s analysts.
Name |
Weight |
Description |
Arrowstreet |
30% |
Arrowstreet is a boutique manager, managing global and international investment products for investors such as pension plans. Arrowstreet currently manages over $17.6 billion on behalf of a very small number of institutional clients. They are based in Boston, USA. |
Legg Mason |
40% |
The Global Equity team managing our assets is part of a boutique within an investment powerhouse with nearly $1 trillion in assets under management. The boutique manages $39 billion and is especially good at customising client portfolios within a well established investment approach. The portfolio management team is in Philadephia, USA. |
McKinley |
30% |
This boutique investment firm was founded in 1980 by Robert B. Gillam, its current President and Chief Investment Officer. The firm has approximately $13 billion in Asset Under Management. McKinley is based in Anchorage, Alaska. |
|
Stock selection: Arrowstreet takes a quantitative approach to stock selection. This involves incorporating stock level data into a model to generate stock return forecasts. Arrowstreet looks for companies that are undervalued relative to other stocks in the market and are also experiencing good price momentum. With the many different factors it examines, and the complementary way it looks at them, we believe Arrowstreet’s model is one of the best in the market.
Portfolio construction and return drivers: A defining characteristic of Arrowstreet’s approach is the ability to combine opportunities and make comparisons at what they call the country/sector basket level (e.g. US Technologies or Australian Autos). For each basket, Arrowstreet will look at multiple factors which drive the performance of a basket and make stock selections within the basket. Because of the rigorous portfolio construction method, Arrowstreet’s portfolios have broad market-like characteristics, and will also have the highest number of stocks of all three managers in the Fund.
Stock selection: Compared to Arrowstreet, Legg Mason employs a more traditional, fundamental approach to global equity investing, based on in depth analysis of companies and their stock price. The team looks for stocks that are very cheap relative to their intrinsic value and where they can identify specific catalysts for either unlocking hidden value or improving the company’s worth.
Portfolio construction and return drivers: The portfolio manager compares these undervalued stocks across sectors and countries, investing only in the most attractive opportunities. These stocks are termed “industry leading”. Because the characteristics of “industry leaders” vary widely between markets and countries, Legg Mason’s portfolio characteristics, such as capitalisation, will be different to the market, and are expected to change over time.
Stock selection: McKinley is a very unusual manager. They first look for stocks whose prices are rising in a smooth way – they won’t invest in a stock whose price is too volatile, even if it has been experiencing lots of growth. This is because they believe that return consistency is a signal of quality. Once the universe of investable stocks has been narrowed based on price momentum, McKinley analyses what is driving the market’s view of a stock by talking to leading stock analysts. McKinley believes that the rest of the market will eventually follow the smartest analysts.
Portfolio construction and return drivers: Portfolio construction involves the selection of stocks where the smartest analysts are furthest away from the consensus. The portfolio is the most concentrated of the three, and will see the most significant deviations from the market.
This information provides a brief summary (the "Summary") of Jadwa World Equity Fund (the "Fund"). The content of the Summary is for information purposes only. Jadwa Investment does not hold itself out as providing legal, financial or other advice via the Summary.
Investment in the Fund is governed by the fund’s Terms and Conditions. The Fund is exposed to foreign currencies and changes in the currency exchange rates may have an adverse effect on the value and prices of the units.
Investments in the Fund are not deposits and are not guaranteed. The Fund value is subject to fluctuations and the investor may not receive the full amount invested. The Fund’s past performance is not indicative of future performance. The information provided in the Summary may be changed at any time without prior notice.
Jadwa Investment is authorized and regulated by the Capital Market Authority.
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