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Active Quantitative Equity (AQE)

Fund Update – July 2023

2 min read

Global economic activity lost further momentum as both services and manufacturing weakened in July. The weakness was more pronounced in the Euro Area, with the latest survey indicating the fastest decrease in economic activity since November last year. Headline inflation continued to ease, while labor markets in many countries remained stronger.


The State Street Global Equity Fund underperformed the MSCI World ex Australia Index during July1. At the factor level, stock selection was negatively impacted by performance of our Sentiment factor, followed by Catalyst and Quality factors. Conversely, our Value factor contributed positively. From a country and sector perspective, being overweight within US Healthcare and poor stock selection within US IT were key detractors. On the other hand, good stock picking within US Energy and overweight Materials sector in Norway were key contributors towards relative performance. Currency hedging contributed +0.54% during the month.

Notable changes during the month:

During July, 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 Autos (notably Honda on the back of strong Value and Sentiment scores) and US Technology Hardware company HP on the back of improving Sentiment score. At the same time, we reduced our exposure to select Diversified Metals & Mining companies – such as Yara International (falling Value and Quality scores) and Corteva (on the back of falling Sentiment score).