Active Quantitative Equity (AQE)

Fund Update – August 2022

16 September 2022

Global equities struggled in August, as hawkish commentary from the Fed’s annual Jackson Hole symposium softened investor sentiment. Commodity prices fell after a de-escalation in Iraq stabilized oil exports. From a sector perspective, the Consumer Discretionary, IT and Industrials sectors relatively outperformed while Communication Services, Health Care and Consumer Staples sectors underperformed.

Attribution:

The State Street Global Equity Fund outperformed the MSCI World ex Australia Index during August.¹ From a country and sector perspective, good stock picking within US Staples, US Tech and Japanese Industrials were key contributors. On the other hand, negative stock selection within US Financials, US Communication Services and UK Staples were key detractors from relative performance. The dynamic currency hedging overlay detracted 0.8% during the month largely due to a stronger USD (vs AUD).

Notable changes during the month:

During the month, we marginally increased our allocation to select Materials and Energy names as part of regular rebalancing – including Oil companies Marathon Petroleum and Canadian Natural Resources, as well as Agricultural chemical company Corteva. At the same time, we have decreased some of our positions in Financials – such as consumer finance company Capital One Financial and private equity firm Blackstone, mainly as a result of falling Quality scores and overall portfolio construction considerations.

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Footnotes

Disclosure

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.

For Institutional / Professional Investors use only.

References to the State Street Global 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.

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. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. You should consult your tax and financial advisor.

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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Equity securities may fluctuate in value and can decline significantly in response to the activities of individual companies and general market and economic conditions.

Currency Risk is a form of risk that arises from the change in price of one currency against another. Whenever investors or companies have assets or business operations across national borders, they face currency risk if their positions are not hedged.

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Adtrax Code: 4948687.1.ANZ.INST
Expiry: 3/09/2023