Fund Update – April 2024
Global economic activity expanded broadly in April, with signs of improvement in Europe and Japan but not so in the United States (US). Inflation readings came in hotter than expected in the US, while consumer price rises in the euro area remained stable when compared to the previous month. Labor market showed signs of cooling with the US job growth slowing more than expected.
Attribution:
The State Street Global Equity Fund outperformed the MSCI World ex Australia Index during April1. Our Alpha model performance was down in April, with negative contribution from Sentiment factors, followed by Catalyst. Conversely, Value contributed the most, followed by Quality, during the period. From a country and sector perspective, good stock picking within US IT and Japan Industrials sectors were key contributors towards relative performance. On the other hand, poor stock selection in US Energy and US Health Care sectors were the key detractors. Currency hedging detracted -0.27% during the month.
Notable changes during the month:
During April, 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 Banking industry within Financial sector, notably Nordea Bank Abp on the back of increasing Sentiment and Quality scores. At the same time, we reduced our exposure to Pharmaceuticals Biotechnology & Life Sciences companies – such as Bristol-Myers Squibb Company, on the back of falling Catalyst and Quality scores.