The State Street Australian Equity Fund ("the Fund") aims to outperform the S&P/ASX 300 Index, before management costs, over rolling 5 year periods but with a lower level of variability.

The strategy looks for high quality companies that are reasonably valued and have an improving growth outlook and positive investor sentiment. Via security selection and portfolio construction, the implemented portfolio is expected to have a lower level of absolute risk (as defined by standard deviation of returns) than the market index, and the potential to provide total returns above the market index over the long term.

We consider the fund as a high conviction, benchmark unaware manager that rather than building positions based on the weigh in the benchmark, positions are centred around total return and risk characteristics of the underlying securities.

The fund’s stock selection process is centred around three core themes: quality, value and sentiment.

The fund also provides the portfolios with core active Australian equity exposure.