Fund Update - April 2021

State Street Global Equity Fund

Global equities rose +3.2% in AUD terms during April 2021, as global bond yields fell slightly. Strong macro indicators point to continued improvement in growth and inflation; with US leading the way in manufacturing and services expansion as indicated by the PMI (Purchasing Managers Index). All
sectors except Energy ended the month in the green; led by Communication
Services, Real Estate, and IT. 

The State Street Global Equity Fund underperformed the broader index (MSCI World ex Australia TR Index) in April. The underperformance was largely driven by negative stock selection within Communication Services, Staples and Health Care. On the other hand, good stock picking within Industrials and having no exposure to Energy were key contributors towards relative performance. Currency hedging added 0.4% as the AUD rose 1c to $0.77 against the USD on the back of strong commodity prices.