The S&P/ASX 300 Index rose +2.3% in March 2021, underperforming global developed market equities. Large caps led the market higher again, with the S&P/ASX 50 Index up 1.8% compared to a 0.2% increase in the S&P/ASX Small Ordinaries Index. The US 10-year yield rose nearly 28bps in March, driven by an increase in real yields. In contrast, Australia’s 10-year yield fell ~10bps, supporting yield sensitive sectors like Utilities, Discretionary and REITs. Metals & Mining was the worst performing sector, in part due a slowdown in China’s economic expansion and concerns about high iron ore prices.
The State Street Australian Equity Fund outperformed its benchmark during March after fees. From a sector perspective, outperformance was largely driven by good stock picking within Health Care (Sonic, Ansell and Fisher & Paykel Healthcare), Staples (Select Harvests and Coles), Industrials (Brambles and Aurizon) and an overweight position in Utilities. Many of our outperformers in March were previously lagging the broader market (post-vaccine announcement), but have bounced back during the month as the junk / risk-on rally lost steam.
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.
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Source: Bloomberg Finance, L.P., SSGA as at 31 March 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.
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