MultiSeries 30

 

Features

Information

APIR codeMMF6758AU
Minimum suggested Investment time frame3-5 years
Growth/defensiveGrowth 30% / Defensive 70%
FE fundinfo sectorMixed Asset - Moderate
Income distribution frequencyHalf yearly
Total fees and costs as at 7/25/2022 12:00:00 AM0.76% pa
Fund size
Inception date25 July 2022

Investment minimums

Please refer to PDS 

Pricing

Price dateN/A
EntryN/A
ExitN/A

Standard risk measure

1 2 3 4 5 6 7
Standard Risk Measure

A Standard Risk Measure score of 5 equates to a Risk Label of 'Medium to High' and an estimated number of negative annual returns over any 20 year period of 3 to less than 4. This is a measure of expected frequency (not magnitude) of capital losses, calculated in accordance with ASFA/FSC guidelines.

Investment objective

To provide stable returns over the medium term by investing in a diversified portfolio of mostly defensive assets with some growth asset exposure and to achieve total returns after fees in excess of the benchmark over a rolling three-year period.

Investment strategy

IOOF MultiSeries 30 (Trust) gains its exposure to a diversified portfolio of investments through a mix of investment managers.

The conservative nature of the Trust provides a greater exposure to defensive assets, such as fixed interest and cash with a moderate exposure to growth assets, such as property, Australian and international shares and alternative assets.

A mix of passive, factor based and active investment managers may be selected to manage the assets of the Trust providing differing yet complementary investment styles to achieve more consistent excess returns.

The Trust is authorised to utilise approved derivative instruments for risk management purposes and investment efficiency. Please note that derivative instruments cannot be used to gear the Trust’s exposure.

The underlying managers may utilise strategies for the management of currency exposure. It is the strategy of the Trust that international currency exposure may be hedged. The Trust has the capacity to change the level and nature of any currency overlay or allocation to underlying managers to manage currency risk.


Investor profile

Suitable for investors who prefer:
• Investment time - three to five years
• Risk tolerance - low to medium level
• Level of diversification - seeking a well-diversified portfolio of predominantly defensive income-producing assets with some growth asset exposure

Research house ratings

Rating

LonsecRecommended

This portfolio has been active for less than six (6) months. Performance will display once this milestone is met.

Performance is net of management costs and expenses. Performance is based on exit price to exit price for the period and assumes that all distributions are reinvested. Management costs and other expenses are accounted for in the exit price. Past performance is not a reliable indicator of future performance.


The performance data has been sourced by FE fundinfo.


Asset allocation as at 30/06/2022

Breakdown pie chart
Australian shares7.64%
International shares8.61%
Australian fixed interest23.34%
International fixed interest21.61%
Australian property3.47%
International property1.32%
Alternative - growth6.40%
Alternative - defensive7.68%
Cash and short-term securities19.94%

Asset allocation range


Asset class Asset range
Australian shares 0-20%
International shares 0-20%
Diversified fixed interest 35-55%
Property 0-20%
Alternative growth 0-20%
Alternative defensive 0-15%
Cash and short-term securities 10-35%

Actual versus target asset allocation as at 30/06/2022

Manager diversification within each asset class as at 30/06/2022

Breakdown pie chart

Top holdings - Australian shares as at 30/06/2022

BHP Group Ltd0.61%
CSL Limited0.42%
Commonwealth Bank of Australia0.39%
National Australia Bank Limited0.35%
Transurban Group Ltd.0.32%
Macquarie Group, Ltd.0.25%
Woodside Energy Group Ltd0.21%
Westpac Banking Corporation0.17%
Woolworths Group Ltd0.17%
Telstra Corporation Limited0.17%

Top holdings - International shares as at 30/06/2022

Microsoft Corporation0.40%
Apple Inc.0.21%
UnitedHealth Group Incorporated0.18%
Amazon.com, Inc.0.17%
Visa Inc. Class A0.13%
Alphabet Inc. Class A0.12%
Alphabet Inc. Class C0.11%
Suncor Energy Inc.0.10%
Nestle S.A.0.10%
Mastercard Incorporated Class A0.09%

Market and portfolio review

Contributors to Performance

An overweight to Alternatives contributed to performance, together with the underlying managers performing well - particularly private debt manager Metrics.

The diversified fixed interest portfolio outperformed in a rising yield environment, due to its short duration positioning.

Both the Australian and international equities portfolios outperformed their respective benchmarks.

Detractors from performance

An underweight to Cash and Direct Property, and an overweight to Australian equities detracted from performance.

Future investment strategy

Markets continued to be rattled by the recession narrative in June, bringing the S&P 500 into bear market territory just as the first half of the year drew to a close. This has been the worst first half for the S&P 500 since 1970 as well as for US bonds going back to 1900.

In many Western developed economies, inflation has proven to be sticker than expected with US headline CPI inflation hitting 8.6% and Euro Area HICP inflation hitting 8.1%. Central banks are attempting to re-establish credibility and have had little choice but to emphasize commitment to the inflation mandate. This has resulted in a 75-basis point rate hike by the Federal Reserve (Fed) and more aggressive expectations for future hikes. The European Central Bank (ECB) held an emergency meeting shortly before the Fed meeting and came out with a new tool to fight market fragmentation. Not wanting to be behind the curve, the Swiss National Bank (SNB) made a momentous move and pre-emptively hiked rates by 50 basis points – their first-rate hike in 15 years – despite Switzerland not having the high inflation plaguing other Western developed countries. This all seems to signify that the era of ultra-low rates is ending. It is normal to see some form of valuation compression as rates edge higher. What is concerning markets more is whether central banks will force a recession to bring inflation back down to more normalized levels.

Recent US activity data has not been very encouraging. Real GDP for the first quarter was revised down further to -1.6% annualized due to sharp downward revisions to consumption growth on the back of a larger Omicron impact. Consumer sentiment as measured by the University of Michigan has declined further in June and hit an all-time low in the 44-year survey history with a 50 reading. Commentary from the University of Michigan indicated that almost half of consumers attributed their negative views to inflation (up from 38% in May). The S&P 500 fell by -8.26% for the month.

Economic activity indicators across much of Western Europe have not been better. This follows the additional threats of energy and power disruptions which have become more serious. Russian gas flows into Europe are currently at around 40% of pre-war levels. Unsurprisingly, gas prices have risen, building up a drag not only on consumers but also industrial activity. MSCI Europe fell by -7.70% while Germany’s DAX fell by a larger -11.15%, likely due in part to Germany’s higher reliance on Russian gas.

China on the other hand is in a very different position where the economy is benefitting from a COVID reopening as well as fiscal and monetary stimulus. This was reflected in China’s June Caixin/Markit manufacturing PMI which rose to expansionary territory of 51.7 in June. The CSI 300 and HSI index gained +10.43% and +3.00% respectively.

NameMultiSeries 30
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OneAnswer Frontier Pension is issued by OnePath Custodians Pty Limited (OnePath Custodians) ABN 12 008 508 496 AFSL 238346.

The information provided in this table is a brief outline of the major features of OneAnswer Frontier Pension. It is intended as a quick and easy reference source for investors. The table should not be used as a substitute for reading the appropriate Product Disclosure Statement (PDS) prior to you making any decision to invest through OneAnswer Frontier Pension.

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