The S&P/ASX 300 Index rose +3.7% in April 2021, on the back of better-than-expected employment data and rising commodity prices. Covid-19 vaccine rollout and positive commentary around the upcoming budget saw investors anticipate both a stronger economy and a better fiscal position for the government. Large caps trailed the market, with the S&P/ASX 50 Index up +3.2% compared to a +5.0% rise in the S&P/ASX Small Ordinaries Index. Sector-wise, IT, Materials, and Industrials sectors outperformed on the back of strong demand for Technology names and strong gains in house prices. On the other hand, Energy was the worst performer – driven by falling oil prices (AUD) and negative earnings surprises.
The State Street Australian Equity Fund underperformed its benchmark
during April after fees. From a sector perspective, underperformance was
largely driven by negative stock selection within Industrials (Brambles and
Aurizon), Gold (Regis Resources), Communication Services (Telstra and Spark NZ) and an overweight position in Utilities. On the other hand, good stock picking within Health Care (Fisher & Paykel Healthcare), Financials, and not holding Energy names were key value adds.
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(“SSGA Australia”) is the Investment Manager.
References to the State Street Australian Equity Fund ("the Fund") in this
communication are references to the managed investment schemes domiciled in Australia, promoted by SSGA Australia, in respect of which SSGA, ASL is the Responsible Entity. This general information has been prepared without taking into account your individual objectives, financial situation or needs and you should consider whether it is appropriate for you. You should seek professional advice and consider the product disclosure document and target market determination, available at www.ssga.com, before deciding whether to acquire or continue to hold units in the Funds.
This material should not be considered a solicitation to apply for interests in the Funds and investors should obtain independent financial and other professional advice before making investment decisions. There is no representation or warranty as to the currency or accuracy of, nor liability for, decisions based on such information.
All information is from SSGA unless otherwise noted and has been obtained from sources believed to be reliable, but its accuracy is not guaranteed.
Source: Bloomberg Finance, L.P., SSGA as at 30 April 2021. Past performance is not a reliable indicator of future performance. This information should not be considered a recommendation to buy or sell any
security or sector shown. It is not known whether the securities or sectors
shown will be profitable in the future. Characteristics are as of the date
indicated, subject to change, and should not be relied upon as current
thereafter. Index returns are unmanaged and do not reflect the deduction of any fees or expenses. Index returns reflect all items of income, gain and loss and the reinvestment of dividends and other income.
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.
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