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On 4th June 2024, the State Street Climate ESG International Equity Fund underwent a special rebalance to incorporate a number of new forward looking climate metric targets (climate value at risk, carbon risk rating and implied temperature rise) and sustainability screens (civilian firearms and oil & gas), subject to materiality thresholds. For more information, please see the Fund’s Product Disclosure Statement and accompanying Information Booklet, available at ssga.com.

State Street Climate ESG International Equity Fund

NAV
AUD $1.8447
as of 20 Jun 2024
Management Costs
0.24% p.a.
Base Currency
AUD
Fund Size
AUD $419.6 mn
as of 31 May 2024
Buy/Sell Spread
0.07%/0.04%

Key Features

  • Climate Risk & Opportunities – favours companies we believe are well positioned for climate change by considering a variety of measures for each company. These include carbon emissions, exposure to fossil fuel reserves, the proportion of revenues in “brown” and “green” sectors as well as forward looking metrics including Climate Value at Risk, Carbon Risk Rating and Implied Temperature Rise.
  • ESG Scoring - seeks increased exposure to companies with strong ESG ratings using State Street’s ESG scoring methodology (R-Factor™).
  • Exclusionary Screening - screens out companies with material involvement in controversial business activities including tobacco, controversial (including nuclear) weapons, thermal coal, oil & gas, alcohol, gambling, civilian firearms and adult entertainment. Also screens out companies that exhibit violations of the UN Global Compact principles or exhibit severe ESG controversies.1
  • Diversified Investment - provides investors with a cost efficient way of gaining diversified exposure to international stock markets.

Investment Objective

The State Street Climate ESG International Equity Fund (“the Fund”) seeks to achieve capital growth and income in line with the MSCI World ex-Australia Index, subject to delivering climate and ESG objectives.

About this Benchmark

The MSCI World ex-Australia Index ("the Index") represents large- and mid-cap stocks across 22 developed markets countries. The Index is an industry benchmark used by professional investors for global equity portfolios.

Investment Strategy

The Fund allows investors to deploy capital across multiple dimensions of ESG and Climate themes via:

  • Climate Risks - aims to reduce exposure to fossil fuel related activities and companies with elevated exposure to climate-related financial risks, such as physical risks.
  • Climate Opportunities - aims to increase exposure to companies who are well positioned for the low-carbon transition, including those better prepared for the economic and regulatory impacts of climate change, or those companies investing in green technologies.
  • Sustainable & Transparent ESG - increases exposure to companies that score well on financially material global sustainability issues as well as market specific corporate governance codes using State Street’s ESG scoring methodology (R-Factor™).
  • Screening - excludes a) companies with material business activity involving tobacco, controversial (including nuclear) weapons, thermal coal, oil & gas, gambling, civilian firearms, alcohol and adult entertainment. We do not try to screen every company that touches these products or issues in any way; and b) companies that exhibit violations of the United Nations corporate sustainability principles or have severe ESG controversies. We do not try to screen out companies with less significant violations of the United Nations Global Compact or those with less impactful ESG controversies.1

The Fund uses an optimiser to construct the portfolio which aims to achieve the most efficient trade-off between climate targets, ESG improvement, tracking error and diversification, while seeking long-term returns broadly in line with the Index.

Fund Information as of 22 Jun 2024

Benchmark MSCI World ex-Australia Index
Inception Date 30 Jun 2016
Management Costs 0.24% p.a.
Buy/Sell Spread 0.07%/0.04%
Minimum Initial Investment AUD 25,000
Pricing Daily
Distribution Frequency Semi-Annually
APIR Code SST0057AU
ARSN Code 611 640 361
ISIN AU60SST00571

Fund Pricing as of 20 Jun 2024

NAV AUD $1.8447
Application AUD $1.8459
Redemption AUD $1.8440

Fund Performance

  • Fund Inception Date: 30 Jun 2016

as of 31 May 2024

As Of 1 Month 3 Months 1 Year 3 Years (p.a.) 5 Years (p.a.) 7 Years (p.a.) Since Inception (p.a.)
30 Jun 2016
Fund (Gross) 31 May 2024 2.29% 1.72% 21.30% 11.13% 13.88% 12.70% 13.50%
Fund (Net) 31 May 2024 2.27% 1.66% 21.01% 10.86% 13.61% 12.43% 13.24%
Growth 31 May 2024 2.28% 1.66% 17.56% 5.97% 7.72% 6.55% 7.64%
Distribution 31 May 2024 0.00% 0.00% 3.45% 4.89% 5.89% 5.88% 5.60%
Benchmark
MSCI World ex-Australia Index

From 29 March 2018 to 29 May 2020, the performance benchmark for the Fund was the MSCI World ex Australia Select ESG Low Carbon Integrated Index. Prior to 28 March 2018 the performance benchmark for the State Street Low Carbon ESG International Equities Index Trust was the MSCI World ex Australia ex Tobacco ex Controversial Weapons Index.

31 May 2024 2.02% 1.67% 21.70% 12.30% 14.22% 12.88% 13.64%
Difference (Gross) 31 May 2024 0.28% 0.05% -0.40% -1.17% -0.34% -0.19% -0.14%
Difference (Net) 31 May 2024 0.26% -0.01% -0.69% -1.43% -0.61% -0.45% -0.40%

From 29 March 2018 to 29 May 2020, the performance benchmark for the Fund was the MSCI World ex Australia Select ESG Low Carbon Integrated Index. Prior to 28 March 2018, the performance benchmark for the Fund was the MSCI World ex Australia ex Tobacco ex Controversial Weapons Index. Past performance is not a reliable indicator of future performance. Performance returns for periods of less than one year are not annualised. The Fund return figures contained herein reflect Total Returns and are provided on a net and gross of fees basis. The Total Return is the sum of the Growth (or Price) Return and Distribution Return which is shown net of management fees and costs.

Performance figures are calculated using end-of-month exit prices and assume the reinvestment of distributions and make no allowance for tax. Net performance figures are after management and transaction costs. Gross performance figures are before management costs but after transaction costs. Index returns are unmanaged and do not reflect the deduction of any fees or expenses. The calculation method for the value added returns may show rounding differences.

Source: State Street Global Advisors

Top Holdings as of 31 May 2024

Name Fund
APPLE INC 4.83%
MICROSOFT CORP 4.59%
NVIDIA CORP 4.11%
AMAZON.COM INC 2.60%
TOKYO ELECTRON LTD 2.09%
ALPHABET INC-CL C 2.00%
META PLATFORMS INC-CLASS A 1.67%
CISCO SYSTEMS INC 1.42%
ALPHABET INC-CL A 1.31%
SCHNEIDER ELECTRIC SE 1.19%
Download All Holdings: Monthly

Sector Allocation as of 31 May 2024

Name Fund Benchmark
Information Technology 25.74% 24.60%
Financials 16.04% 14.96%
Health Care 12.09% 11.83%
Consumer Discretionary 10.78% 10.26%
Industrials 10.71% 11.23%
Communication Services 8.65% 7.79%
Consumer Staples 5.89% 6.62%
Energy 3.38% 4.45%
Materials 2.48% 3.52%
Real Estate 2.25% 2.09%
Utilities 1.99% 2.65%

Country Allocation as of 31 May 2024

Country Fund Benchmark
United States 71.00% 72.25%
Japan 6.69% 6.00%
Canada 3.76% 3.10%
United Kingdom 3.72% 4.04%
France 3.48% 3.16%
Germany 2.80% 2.27%
Denmark 1.67% 1.00%
Switzerland 1.53% 2.52%
Netherlands 1.47% 1.36%
Spain 0.76% 0.72%
Other 3.12% 3.57%

Sector reporting based on the Global Industry Classification Standard ("GICS") which was developed by and is the exclusive property and a service mark of MSCI Inc. ("MSCI") and Standard & Poor's, a division of The McGraw-Hill Companies, Inc. ("S&P") and is licensed for use by State Street.

Holdings, sector and country allocations shown are as of the date indicated and are subject to change. This information should not be considered a recommendation to invest in a particular sector or to buy or sell any security shown. It is not known whether the sectors or securities shown will be profitable in the future. The holdings are taken from the accounting records of State Street Global Advisors which may differ from the official books and records of the custodian. Excludes cash, cash equivalents and accruals.

Source: State Street Global Advisors

1 The strategy used by the Fund relies on data from numerous external providers. This includes index data, climate data and ESG data. There is a risk that inaccurate or incomplete data from an external provider will cause the Fund to fail to meet its objectives, either by reducing returns, or by exposure to unintended ESG or climate risks. Materiality thresholds are outlined in the Fund’s Product Disclosure Statement and accompanying Information Booklet, available at ssga.com.

Equity securities may fluctuate in value in response to the activities of individual companies and general market and economic conditions. Investing in foreign domiciled securities may involve risk of capital loss from unfavourable fluctuation in currency values, withholding taxes, from differences in generally accepted accounting principles or from economic or political instability in other nations. Diversification does not ensure a profit or guarantee against loss. This information should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security.

The returns on a portfolio of securities which exclude companies that do not meet the portfolio's specified ESG criteria may trail the returns on a portfolio of securities which include such companies. A portfolio's ESG criteria may result in the portfolio investing in industry sectors or securities which underperform the market as a whole.

Responsible-Factor (R-Factor) scoring is designed by State Street to reflect certain ESG characteristics and does not represent investment performance. Results generated out of the scoring model is based on sustainability and corporate governance dimensions of a scored entity.

The MSCI World ex-Australia Index is a trademark of MSCI Inc.