Fund Update – November 2020

State Street Australian Equity Fund

The S&P/ASX 300 Index rallied +10.2% in November 2020, one of the
strongest months in history but slightly underperforming developed market
equity returns. Against the backdrop of a contested US presidential election and a still rampant global pandemic, Australian corporations are showing momentum in earnings recovery and dividend expectations. During the month, value sectors like Energy, Financials and Communication Services outperformed while defensives like Staples and Utilities underperformed.

The State Street Australian Equity Fund underperformed its benchmark
during November after fees. From a sector perspective, our lower than benchmark weight in Financials (not holding big 4 banks) and negative stock selection within Health Care (Ansell and Sonic Healthcare) were key detractors. On the other hand, having an underweight to IT and good stock picking within Industrials added value. Year to date, the fund’s underperformance is largely attributed to our underperformance in November; sectors that detracted the most in 2020 were Utilities, Industrials and Real Estate.