State Street Global Equity Fund

NAV

AUD $1.5094

as of 21 Oct 2021

Management Costs

0.85% p.a.

Base Currency

AUD

Fund Size

AUD $118.4 mn

as of 30 Sep 2021

Buy/Sell Spread

0.08%/0.06%


Key Features

Key Features

  • High Conviction, Benchmark Unaware - rather than building stock positions dictated by the underlying benchmark weight, the Fund explores the market's full opportunity set, constructing a high conviction portfolio based on total return and total risk characteristics.
  • Active Stock Selection - our stock selection approach employs three core themes: quality, value, and sentiment.
  • Human Led, Research Tested - only our best investment ideas survive the rigorous research of our investment team.
  • Core Active Exposure - a potential core international equity exposure for investors.
  • Focus on Reducing Total Volatility - explicit focus on risk management at multiple stages in the investment process aims to reduce the impact of market volatility.
  • Currency Risk Management - our Dynamic Strategic Hedging programme (”DSH”) adjusts the hedge ratio for each currency in the portfolio according to our medium to long-term assessment of that currency's economic value relative to the Australian dollar.
  • Asset Stewardship Impact - active engagement with portfolio companies on issues that promote long-term value creation.

Investment Objective

Investment Objective

The State Street Global Equity Fund ("the Fund") seeks to outperform the Benchmark, before management costs, over a full market cycle of approximately 5 - 7 years, with lower volatility than the Benchmark. It also seeks to mitigate currency risk associated with the Benchmark.


About this Benchmark

About this Benchmark

The MSCI World ex-Australia Index ("the Index") represents large- and mid-cap stocks across 22 developed markets countries. The Index is an industry benchmark used by professional investors for global equity portfolios.


Investment Strategy

Investment Strategy

The Fund invests in listed global equity securities selected from the MSCI World-ex Australia Index and  excludes companies, subject to materiality thresholds identified by MSCI, involved in tobacco and controversial weapons.. We create a portfolio that aims to deliver strong total returns with lower total variability of returns than the market index.

The strategy looks for high quality companies that are reasonably valued and have an improving growth outlook and positive investor sentiment. Via security selection and portfolio construction, the implemented portfolio is expected to have a lower level of absolute risk (as defined by standard deviation of returns) than the market index, and the potential to provide total returns above the market index over the long term. We manage currency risk using our DSH programme.

The Fund is suitable for investors who seek:

  • long term, capital growth
  • active management; and
  • lower volatility than the broad equity market.

Fund Information as of 24 Oct 2021

Fund Information as of 24 Oct 2021
Benchmark Inception Date Management Costs Buy/Sell Spread Minimum Initial Investment
MSCI World ex-Australia Index 31 Jan 2014 0.85% p.a. 0.08%/0.06% AUD 25,000
Benchmark MSCI World ex-Australia Index
Inception Date 31 Jan 2014
Management Costs 0.85% p.a.
Buy/Sell Spread 0.08%/0.06%
Minimum Initial Investment AUD 25,000
Pricing Distribution Frequency APIR Code ARSN Code ISIN
Daily Annually SST0050AU 162 547 784 AU60SST00506
Pricing Daily
Distribution Frequency Annually
APIR Code SST0050AU
ARSN Code 162 547 784
ISIN AU60SST00506

Fund Pricing as of 21 Oct 2021

Fund Pricing as of 21 Oct 2021
NAV Application Redemption
AUD $1.5094 AUD $1.5106 AUD $1.5085
NAV AUD $1.5094
Application AUD $1.5106
Redemption AUD $1.5085
Most Recent NAV / NAV History

Fund Performance

Fund Performance

  • Fund Inception Date: 31 Jan 2014

as of 30 Sep 2021

As Of 1 Month 3 Months 1 Year 3 Years (p.a.) 5 Years (p.a.) Since Inception (p.a.)
31 Jan 2014
Fund (Gross) 30 Sep 2021 -2.85% 4.51% 20.69% 7.39% 10.61% 12.21%
Fund (Net) 30 Sep 2021 -2.92% 4.29% 19.67% 6.40% 9.57% 11.14%
Benchmark 30 Sep 2021 -3.05% 3.99% 27.76% 13.29% 15.18% 13.53%
Difference (Gross) 30 Sep 2021 0.20% 0.52% -7.08% -5.91% -4.58% -1.32%
Difference (Net) 30 Sep 2021 0.13% 0.30% -8.09% -6.89% -5.62% -2.38%

Past performance is not a reliable indicator of future performance. Performance returns for periods of less than one year are not annualised. The performance figures contained herein reflect Total Returns and are provided on a net and gross of fees basis. Performance figures are calculated using end-of-month exit prices and assume the reinvestment of distributions and make no allowance for tax. Net performance figures are after management and transaction costs. Gross performance figures are before management costs but after transaction costs. Index returns are unmanaged and do not reflect the deduction of any fees or expenses. The calculation method for the value added returns may show rounding differences.

Source: State Street Global Advisors


Top Holdingsas of 30 Sep 2021

Top Holdingsas of 30 Sep 2021
Name Fund Benchmark Active Weight
MERCK KGAA 1.70% 0.05% 1.65%
NIPPON YUSEN KK 1.69% 0.02% 1.67%
FUJIFILM HOLDINGS CORP 1.61% 0.05% 1.55%
WASTE MANAGEMENT INC 1.59% 0.11% 1.48%
FUJITSU LTD 1.57% 0.06% 1.51%
NETAPP INC 1.54% 0.04% 1.51%
HCA HEALTHCARE INC 1.54% 0.12% 1.42%
QUEST DIAGNOSTICS INC 1.51% 0.03% 1.48%
NOVO NORDISK A/S-B 1.51% 0.29% 1.22%
KROGER CO 1.50% 0.05% 1.45%

Sector Allocationas of 30 Sep 2021

Sector Allocationas of 30 Sep 2021
Name Fund Benchmark Active Weight
Health Care 22.40% 12.64% 9.76%
Financials 14.76% 13.22% 1.54%
Communication Services 13.76% 9.27% 4.49%
Information Technology 12.30% 22.91% -10.61%
Industrials 10.46% 10.42% 0.04%
Consumer Staples 9.52% 6.91% 2.61%
Consumer Discretionary 8.50% 12.24% -3.74%
Materials 5.12% 3.87% 1.25%
Real Estate 1.68% 2.61% -0.93%
Utilities 1.50% 2.71% -1.21%
Energy 0.00% 3.19% -3.19%

Country Allocationas of 30 Sep 2021

Country Allocationas of 30 Sep 2021
Country Fund Benchmark
United States 59.84% 69.05%
Japan 13.13% 7.19%
Germany 4.86% 2.70%
Switzerland 4.58% 2.83%
Denmark 2.43% 0.78%
Norway 2.19% 0.20%
Netherlands 2.10% 1.44%
Sweden 2.07% 1.09%
Singapore 1.98% 0.34%
Hong Kong 1.61% 0.88%
Other 5.20% 13.50%

Sector reporting based on the Global Industry Classification Standard ("GICS") which was developed by and is the exclusive property and a service mark of MSCI Inc. ("MSCI") and Standard & Poor's, a division of The McGraw-Hill Companies, Inc. ("S&P") and is licensed for use by State Street.

Holdings, sector and country allocations shown are as of the date indicated and are subject to change. This information should not be considered a recommendation to invest in a particular sector or to buy or sell any security shown. It is not known whether the sectors or securities shown will be profitable in the future. The holdings are taken from the accounting records of State Street Global Advisors which may differ from the official books and records of the custodian. Excludes cash, cash equivalents and accruals.

Source: State Street Global Advisors


Fund Footnote

Equity securities may fluctuate in value in response to the activities of individual companies and general market and economic conditions. Investing in foreign domiciled securities may involve risk of capital loss from unfavourable fluctuation in currency values, withholding taxes, from differences in generally accepted accounting principles or from economic or political instability in other nations. Actively managed funds do not seek to replicate the performance of a specified index. The Fund is actively managed and may underperform its benchmarks. An investment in the Fund is not appropriate for all investors and is not intended to be a complete investment program. Investing in the Fund involves risks, including the risk that investors may receive little or no return on the investment or that investors may lose part or even all of the investment. This information should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security. Investments in issuers in different countries are often denominated in different currencies. Changes in the values of those currencies relative to the Portfolio's base currency may have a positive or negative effect on the values of the Portfolio's investments denominated in those currencies. The Portfolio may, but will not necessarily, invest in currency exchange contracts or other currency-related transactions (including derivatives transactions) to reduce exposure to different currencies. These contracts may reduce, take or eliminate some or all of the benefit that the Portfolio may experience from favourable currency fluctuations.

The MSCI World ex-Australia Index is a trademark of MSCI Inc.