The S&P/ASX 300 Index rose +2.3% in June 2021, lagging global developed markets. Despite the strong economic recovery in Australia, there was a Growth rally in June, assisted by a pullback in Global and Australian 10-year bond yields and a slightly more hawkish Federal Reserve. As a result, the ASX lagged global markets due to its smaller representation in Technology (best performing sector) and relatively higher weight in cyclical sectors like Financials (weakest performing sector) and Materials.
The State Street Australian Equity Fund outperformed its benchmark during June after fees. From a sector perspective, the outperformance was largely driven by our lower than benchmark position in Financials (not holding the big 4 banks) and good stock picking in Health Care (Resmed & Sonic). On the other hand, having no exposure to IT (namely Afterpay) detracted ~40bps. Year to date, our higher than benchmark weight in Utilities (AGL and AusNet) and lower than benchmark weight in Financials (not holding the big 4 banks) were key detractors, while good stock picking in Health Care added value.
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 30 June 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.
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