Legg Mason QS Investors Global Responsibility Investment A aims to earn an after-fee return in excess of the MSCI ESG Leaders Index (‘Performance Benchmark’), in Australian dollars over rolling three-year periods. The Fund is an actively managed portofolio with exposure to global equities that blends fundamentally driven investment insights and advanced quantitative techniques. The investment approach seeks attractively valued companiers that also embody good and improving Environmental, Social and Goverance (ESG) practices with the aim of delivering more sustainable returns. The fund also employs an etichal screen which actively screens out companies that do not meet the Fund’s ethical investment criteria.
The Fund fell 0.80% (net of fees) over the September quarter, outperforming the benchmark as measured by the (MSCI World ESG Leaders Index (AUD)) which in comparison fell 1.11% over the quarter.
Stock selection was the main detractor across region/sectors, with Continental Europe, the United States, and the United Kingdom showing the most weakness. The New Zealand & Canada region was the sole positive contributor. From a sector perspective, Information Technology and Consumer Discretionary were the largest detractors while Industrials added to value. Regional allocation effects were effectively neutral. The global stock selection model produced positive results in Sentiment and Alternatives, but was negative across Valuation for the quarter. Across the Valuation Dimension, negative results were driven by Value factors which more than offset positive performance from Cash Flow factors. Sentiment Dimension results were strong across factors, led by Earnings Growth factor results. Behavioural and Expectations factors were also positive. The Alternative Dimension added value as well.
At month end, the Fund was attractively valued with a lower 12-month forward PE than the benchmark. The Fund was well diversified across regions and sectors. The largest region overweight was to Continental Europe, and the largest underweight was to Japan. The Fund was most overweight in Industrials and most underweight in Materials.
What is Legg Mason QS Investors Glb Rspnb Inv A Legg Mason QS Investors Glb Rspnb Inv A is an Managed Funds investment product that is benchmarked against Developed -World Index and sits inside the Foreign Equity - Large Responsible Index. Think of a benchmark as a standard where investment performance can be measured. Typically, market indices like the ASX200 and market-segment stock indexes are used for this purpose. The Legg Mason QS Investors Glb Rspnb Inv A has Assets Under Management of 11.20 M with a management fee of 0.75%, a performance fee of 0.00% and a buy/sell spread fee of 0.6%.
How has the investment product performed recently?
The recent investment performance of the investment product shows that the Legg Mason QS Investors Glb Rspnb Inv A has returned 2.41% in the last month. The previous three years have returned 14.73% annualised and 11.98% each year since inception, which is when the Legg Mason QS Investors Glb Rspnb Inv A first started.
How is risk measured in this investment product?
There are many ways that the risk of an investment product can be measured, and each measurement provides a different insight into the risk present. They can be used on their own or together to perform a risk assessment before investing, but when comparing investments, it is common to compare like for like risk measurements to determine which investment holds the most risk. Since Legg Mason QS Investors Glb Rspnb Inv A first started, the Sharpe ratio is 0.94 with an annualised volatility of 11.98%. The maximum drawdown of the investment product in the last 12 months is -4.49% and -14.77% since inception. The maximum drawdown is defined as the high-to-low decline of an investment during a particular time period.
What is the relative performance of the investment product?
Relative performance is what an asset achieves over a period of time compared to similar investments or its peers. Relative return is a measure of the asset's performance compared to the return to the other investment. The Legg Mason QS Investors Glb Rspnb Inv A has a 12-month excess return when compared to the Foreign Equity - Large Responsible Index of -1.97% and 1.37% since inception.
Does the investment product produce Alpha over its Peers?
Alpha is an investing term used to measure an investment's outperformance relative to a market benchmark or peer investment. Alpha describes the excess return generated when compared to peer investment. Legg Mason QS Investors Glb Rspnb Inv A has produced Alpha over the Foreign Equity - Large Responsible Index of 0.15% in the last 12 months and 0.16% since inception.
What are similar investment products?
For a full list of investment products in the Foreign Equity - Large Responsible Index category, you can click here for the Peer Investment Report.
What level of diversification will Legg Mason QS Investors Glb Rspnb Inv A provide?
Legg Mason QS Investors Glb Rspnb Inv A has a correlation coefficient of 0.98 and a beta of 0.78 when compared to the Foreign Equity - Large Responsible Index. Correlation measures how similarly two investments move in relation to one another. This establishes a 'correlation coefficient', which has a value between -1.0 and +1.0. A 100% correlation between two investments means that the correlation coefficient is +1. Beta in investments measures how much the price moves relative to the broader market over a period of time. If the investment moves more than the broader market, it has a beta above 1.0. If it moves less than the broader market, then the beta is less than 1.0. Investments with a high beta tend to carry more risk but have the potential to deliver higher returns.
How do I compare the investment product with its peers?
For a full quantitative report on Legg Mason QS Investors Glb Rspnb Inv A and its peer investments, you can click here for the Peer Investment Report.
How do I compare the Legg Mason QS Investors Glb Rspnb Inv A with the Developed -World Index?
For a full quantitative report on Legg Mason QS Investors Glb Rspnb Inv A compared to the Developed -World Index, you can click here.
Can I sort and compare the Legg Mason QS Investors Glb Rspnb Inv A to do my own analysis?
To sort and compare the Legg Mason QS Investors Glb Rspnb Inv A financial metrics, please refer to the table above.
Has the Legg Mason QS Investors Glb Rspnb Inv A been independently verified by SMSF Mate?
This investment product is in the process of being independently verified by SMSF Mate. Once we have verified the investment product, you will be able to find more information here.
How can I invest in Legg Mason QS Investors Glb Rspnb Inv A?
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Comments from SMSF Mates
SMSF Mate does not receive commissions or kickbacks from the Legg Mason QS Investors Glb Rspnb Inv A. All data and commentary for this fund is provided free of charge for our readers general information.
Performance Commentary - June 30, 2022 The Fund fell 6.06% (net of fees) over the June quarter, outperforming the benchmark as measured by the (MSCI World ESG Leaders Index (AUD)) which in comparison fell 8.06% over the quarter.
Stock selection added the most value across region/sectors, with the United States being the main contributor as the Consumer Discretionary sector showed the most strength. Continental Europe and Japan also added value, but New Zealand & Canada and the United Kingdom detracted. From a sector perspective, Consumer Discretionary and Communication Services were strongest while Real Estate was the largest detractor. Regional allocation effects were positive with overweight to U.K. being the largest contributor. The global stock selection model was positive for the quarter, despite some weakness in June especially in the Valuation and Alternative dimensions. For the full quarter, the Valuation dimension results were positive with both value and cash flow factors adding value. The Sentiment dimension was mixed; behavioural factors were strong, earnings growth factors added modest value and expectations factors detracted. The impact of the Alternative Dimension was negative.
At month end, the Fund was attractively valued with a lower 12-month forward PE than the benchmark. The Fund was well diversified across regions and sectors. The largest region overweight was to United Kingdom, and the largest underweight was to Japan. The portfolio was most overweight in Information technology and most underweight in Banks.
Performance Commentary - October 31, 2021 The Fund underperformed the MSCI World Index, on a net of fees basis, in the third quarter of 2021, retuning 3.43% Stock selection detracted for the month. Selection within the U.K. and Continental Europe were the top detractors. Within Continental Europe, selection in the Information Technology and Industrials sectors were poor. Across other regions selection in the Australia, New Zealand, and Canada, Japan, and the U.S. was negative, but positive across the Asia Developed ex Japan region. From a sector perspective, selection was weak across Industrials, Consumer Discretionary, and Financials ex Banks. The impact of region and sector allocation decisions was flat.
At quarter end, the Fund was attractively valued with a lower 12-month forward PE than the benchmark. The Fund was well diversified across regions and sectors. The largest region overweight was to Australia, New Zealand, and Canada and the largest underweight was to the U.S. From a sector perspective, the Fund was most overweight in Financials ex Banks and most underweight in Utilities
Performance Commentary - September 30, 2021 The Fund underperformed the MSCI World Index, on a net of fees basis, in the third quarter of 2021, retuning 3.43% Stock selection detracted for the month. Selection within the U.K. and Continental Europe were the top detractors. Within Continental Europe, selection in the Information Technology and Industrials sectors were poor. Across other regions selection in the Australia, New Zealand, and Canada, Japan, and the U.S. was negative, but positive across the Asia Developed ex Japan region. From a sector perspective, selection was weak across Industrials, Consumer Discretionary, and Financials ex Banks. The impact of region and sector allocation decisions was flat.
At quarter end, the Fund was attractively valued with a lower 12-month forward PE than the benchmark. The Fund was well diversified across regions and sectors. The largest region overweight was to Australia, New Zealand, and Canada and the largest underweight was to the U.S. From a sector perspective, the Fund was most overweight in Financials ex Banks and most underweight in Utilities.
Performance Commentary - July 31, 2021 The Fund returned 3.46% during June, and 9.79% for the quarter. Stock selection detracted value for the month. Selection within the U.S. was notably weak, especially in the Information Technology, Consumer Discretionary, and Banks sectors. Selection was also weak in Australia, New Zealand, and Canada, but mostly flat across other regions.
From a sector perspective, selection was weak virtually across the board, mainly in the Consumer Discretionary and Information Technology sectors. The impact of region and sector allocation decisions was essentially neutral. At month end, the Fund was attractively valued with a lower 12-month forward PE than the benchmark. The Fund was well diversified across regions and sectors. The largest region overweight was to Australia, New Zealand, and Canada and the largest underweight was to the Japan. From a sector perspective, the Fund was most overweight in Health Care and most underweight in Utilities.
Performance Commentary - June 30, 2021 The Fund returned 3.46% during June, and 9.79% for the quarter. Stock selection detracted value for the month. Selection within the U.S. was notably weak, especially in the Information Technology, Consumer Discretionary, and Banks sectors. Selection was also weak in Australia, New Zealand, and Canada, but mostly flat across other regions. From a sector perspective, selection was weak virtually across the board, mainly in the Consumer Discretionary and Information Technology sectors. The impact of region and sector allocation decisions was essentially neutral. At month end, the Fund was attractively valued with a lower 12-month forward PE than the benchmark. The Fund was well diversified across regions and sectors. The largest region overweight was to Australia, New Zealand, and Canada and the largest underweight was to the Japan. From a sector perspective, the Fund was most overweight in Health Care and most underweight in Utilities.
Performance Commentary - May 31, 2021 The MSCI World Index was up in May. Markets generally rose on signs of continued economic recovery in the U.S., China and elsewhere. However, paired with this economic growth were concerns over inflation, which sparked volatility throughout the month. Whether recent inflation would be persistent or transitory was top of mind for investors as they attempted to gauge fiscal and monetary policy responses. U.S. Treasury yields decreased, but these moves were small relative to the volatility observed year-to-date; the 10-Year Treasury yield fell from 1.63 to 1.60 over the course of the month. The U.S. dollar depreciated against most major currencies, decreasing 1.6% (Dollar Index Spot). Gold rose 7.6% (AUD). The price of Crude oil (WTI) increased 4.3% (AUD), exceeding recent March highs, helped by a weaker dollar and strong demand.
The top performing sectors were Banks, Energy and Materials, with returns of 6.0%, 4.9% and 4.1%, respectively. The worst performers were Consumer Discretionary, Information Technology and Utilities, returning -1.3%, -1.2% and -1.0%, respectively
The Fund outperformed the MSCI World Index in May 2021, returning 3.28%. Stock selection added value for the month with selection effects leading the way. Selection within the U.S. was notably strong, especially in the Information Technology and Consumer Discretionary sectors. Selection was also strong in continental Europe and Japan, and detracted modestly in the U.K. From a sector perspective, selection was strong virtually across the board, led by the Consumer Discretionary and Information Technology sectors. The impact of region and sector allocation decisions was essentially neutral.
Performance Commentary - December 31, 2020 The Fund was -0.99% in December compared with the MSCI World Index (AUD), which fell -0.46% for the month. The Fund was up 4.7% for the December quarter while MSCI World Index (AUD) rose 5.85%. Stock selection detracted value for the month, most notably in the U.S. In the U.S. region, selection within Consumer Discretionary, Consumer Staples, and Health Care was weak. Selection also detracted in Continental Europe and Australia, New Zealand, and Canada. Selection effects were positive in Japan and the U.K. Across sectors selection was weak in Consumer Discretionary and Consumer Staples. Regional and sector allocation effects were flat.
At month end and quarter end, the Fund was attractively valued with a lower 12-month forward PE than the benchmark. The Fund was well diversified across regions and sectors. The largest region overweight was to the U.K. region, and the largest underweight was to Japan. The Fund was most overweight in Real Estate and most underweight in Consumer Discretionary.
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