Australian stocks declined (-1.9%) alongside broader global equity markets (albeit to a lesser extent), as inflation fears, rising bond yields, monetary tightening and a host of other worries placed strain on already high market valuations. Energy was the best performing sector as shortages drove up gas, coal and oil prices and investors seemingly put aside their ESG concerns. By contrast, Mining was the worst performer as iron ore prices declined in response to concerns about China’s property market and Evergrande.
The State Street Australian Equity Fund underperformed the benchmark (S&P/ASX 300 Index) during September 2021. The underperformance in September was largely driven by our lower than benchmark exposure to Financials (not holding the big 4 banks) and Energy (not holding Woodside Petroleum and Santos), as well as negative stock selection within Discretionary and Industrials (Brambles). On the other hand, good stock picking within Utilities and Communication Services were key contributors towards 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 30 September 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.
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.
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