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Systematic Equity Active (SEA)

Fund Update – January 2024

5 min read

Global economic activity started 2024 on a strong footing, with performance of both Service and Manufacturing sectors improving. Data showed that the US and European economies diverged from each other further with Europe’s economy stagnating, while the US expanding in the last quarter of 2023. Labor market remained firm, while inflation moved slightly higher. Major central banks left policy rates unchanged in their first policy meetings of 2024 and signaled that rate cuts look less likely in the first quarter.


The State Street Global Equity Fund underperformed the MSCI World ex Australia Index during January.1 Our Alpha model performance was up in January, with positive contribution from Sentiment factors followed by Catalyst, Quality and Value. From a country and sector perspective, good stock picking within US Consumer Discretionary and Japan Industrials sectors were key contributors towards relative performance. On the other hand, poor stock selection in US IT and UK Consumer Staples sectors were the key detractors. Currency hedging detracted -2.17 % during the month.

Notable changes during the month:

During January, we made minor adjustments to the overall portfolio with the aim of improving expected risk-adjusted returns. The rebalance involved slightly increasing our exposure to select names in the Oil & Gas Refining & Marketing industry within Energy sector, notably Marathon Petroleum Corporation on the back of increasing Quality score and Phillips 66, on the back of improving Sentiment score. At the same time, we reduced our exposure to Communications Equipment company – such as Juniper Networks, Inc. on the back of falling Value and Sentiment scores.