Fund Update – December 2020

State Street Australian Equity Fund

The S&P/ASX 300 Index finished the month of December 2020 up slightly +1.3% as vaccine news continued to drive the recovery. Historically, December has been a good month for Australian equities. Sector-wise, IT, Materials and Consumer Staples outperformed the most, whilst Utilities, Health Care and Industrials underperformed the most.

The State Street Australian Equity Fund underperformed its benchmark
during December after fees. From a sector perspective, negative stock selection within Utilities (AGL and AusNet Services) and Metals & Mining ex Gold (lower exposure to BHP and Fortescue Metals) were key detractors. On the other hand, having an underweight to Financials and good stock picking within Discretionary added value. Year to date, the fund’s underperformance is largely attributed to our underperformance in November and December; sectors that detracted the most in 2020 were Utilities, Industrials and Real Estate.