The S&P/ASX 300 Index rose +1.1 % in July 2021. The increasing spread of the Covid-19 delta variant and the widespread lockdowns dampened growth expectations in July. Bond yields retracted globally, with the Australian 10-year bond yield declining 23bps to 1.18%. Commodity prices moderated, while sectors least impacted by the slowing domestic growth outperformed. Globally orientated Materials sector was the best performer during July, while more resilient staples and utilities also outperformed. On the other hand, Information Technology, Energy and Financials were the worst performers.
The State Street Australian Equity Fund outperformed its benchmark during July after fees. From a sector perspective, the outperformance was driven by a combination of being overweight in the more defensive stocks within Staples (Coles, Woolworths and Select Harvest) and Healthcare (Resmed and Sonic), as well as not owning the big four Banks and expensive Tech (namely Afterpay). On the other hand, negative stock selection within Metals & Mining ex Gold (lower exposure to BHP) and Real Estate were key detractors from relative performance.
Issued by State Street Global Advisors, Australia Services Limited (AFSL Number 274900, ABN 16 108 671 441) (“SSGA, ASL”). Registered office: Level 14, 420 George Street, Sydney, NSW 2000, Australia · Telephone: +612 9240-7600 · Web: www.ssga.com. State Street Global Advisors, Australia, Limited (AFSL Number 238276, ABN 42 003 914 225)
(“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 31 July 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.
Investing involves risk including the risk of loss of principal. Equity securities may fluctuate in value and can decline significantly in response to the activities of individual companies and general market and economic conditions.
Equity securities may fluctuate in value and can decline significantly in response to the activities of individual companies and general market and economic conditions.
This communication is directed at institutional and wholesale clients only. The products and services to which this communication relates are only available to such persons and persons of any other description (including retail clients) are not entitled to rely on this communication.
The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without SSGA Australia’s express written consent.
© 2021 State Street Corporation - All Rights Reserved
Adtrax Code: 3706915.1.1.ANZ.INST
Expiry: 31 August 2022