Fund Update - June 2021

State Street Australian Equity Fund


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.