Fund Update - April 2021

State Street Australian Equity Fund


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.