OnePath Global Property Securities Index

 

Features

Information

APIR codeMMF1630AU
Minimum suggested Investment time frame5+ years
Growth/defensiveGrowth 100%
FE fundinfo sectorProperty - Global
Income distribution frequencyHalf yearly
Total fees and costs as at 9 February 20220.34% pa
Fund size$57.96m
Inception date15 November 2010

Investment minimums

Please refer to PDS 

Pricing

Price date30/09/2022
Entry$1.9163
Exit$1.9175

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

The fund seeks to track the return of the FTSE EPRA/NAREIT Developed Rental Ex-Australia Net Index hedged to the Australian dollar (including income and capital appreciation) before taking into account fees, charges and taxes.

Investment strategy

The fund will have exposure to global listed property securities indices (excluding Australia). The weightings relative to the index may vary from the index from time to time. This fund may invest in property securities that have been or are expected to be included in the indices. Derivatives are not utilised to leverage the portfolio.

Investor profile

The Fund is intended to be suitable for investors seeking to track the return of the FTSE EPRA/NAREIT Developed Rental Ex-Australia Net Index hedged to the Australian dollar (including income and capital appreciation).

Research house ratings

Rating

LonsecRecommended

Meet the manager(s)

NameIOOF Investment Team
BiographyOur impressive investment capabilities are driven by our investment team and structure. Each asset class has a dedicated portfolio manager who enjoys strong support from a host of support staff including analysts and investment specialists. Furthermore, the team benefits from the strong support of our additional research capabilities, namely through our asset consultant.
PhotoIOOF Investment Team

Cumulative performance

ResetPerformance line chart
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3 months6 monthsYear to date1 year3 years pa5 years pa
Fund-10.69%-26.06%-29.32%-21.01%-7.08%-0.75%
FE Sector-10.36%-23.55%-25.99%-18.56%-4.99%0.81%

Calendar Performance

Performance Bar chart
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31/12/202131/12/202031/12/201931/12/201831/12/2017
Fund31.03%-13.54%22.18%-4.39%4.85%
FE Sector27.58%-10.34%22.22%-4.04%7.72%

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 30/09/2022

Breakdown pie chart
International property100.00%

Actual versus target asset allocation as at 30/09/2022

Sector allocation as at 30/09/2022

NameWeight
Real Estate105.14%
Futures0.58%
Health Care0.13%
Consumer Discretionary0.08%
Currency Forward-6.36%
Cash0.39%
Other0.05%

Regional breakdown

North America68.00%
Europe13.70%
Japan7.00%
UK6.30%
Asia3.60%
Other1.40%

Manager diversification within each asset class as at 30/09/2022

Breakdown pie chart

Top holdings - as at 30/09/2022

Name
Weight
Prologis Incorporated
6.14%
Equinix, Inc.
4.23%
Public Storage
3.75%
Realty Income Corporation
2.94%
Welltower Inc
2.44%
Simon Property Group, Inc.
2.39%
VICI Properties Inc
2.35%
Digital Realty Trust, Inc.
2.31%
AvalonBay Communities, Inc.
2.10%
Equity Residential
2.04%

Market and portfolio review

The OnePath Global Listed Property Index Pool portfolio returned -8.45% during the one-month period ending 30 September 2022. The portfolio slightly overperformed the underlying index, the FTSE EPRA NAREIT Developed ex-Aus Rental Index, which returned -8.51% during the same period. The portfolio aims to provide enhanced diversification through real estate across developed markets, excluding Australia.

There was no sector that contributed positively to absolute performance.

The portfolio’s exposure to the real estate sector (-6.67%) was the negative contributor for the period, with contributors stemming from resulting Industrial REITS (-1.63%), Specialized REITS (-1.20%), and Retail REITS (-0.97%). From a country perspective, there was no positive contributor. Country exposures that detracted from absolute performance was United States (-4.37%), United Kingdom (-0.70%) and Germany (-0.30%). Among individual securities, STORE Capital Corporation was the largest positive contributor to absolute performance (+0.11%) while Prologis, Inc. was the largest detractor on an absolute basis (-0.76%).

Future investment strategy

The month of September has historically been the worst month of the year for stocks, both on average and median over the past 100 years. The downturn was largely driven by central banks tightening in response to inflation, Fed hiked by 75bps, and in the FOMC press conference Fed Chair Jay Powell suggested greater willingness to keep hiking amidst a weakening economy if inflation remains high. On the other side, longer term inflation expectations remain well anchored and still tight labor markets continue to reflect resilience in the US economy. The mid-June rally is increasingly looking like a “dead-cat bounce”, with the S&P 500 back to late 2020 levels. MSCI World ended the month down -9.25%, with all sectors falling. Treasury yields moved higher with the 10-year briefly topping 4%.

From a regional perspective, in UK the loosening fiscal policy ran against the grain of the BoE’s efforts to bring inflation down via rate hikes. Sterling fell and Gilt yields rose drastically until the BoE stepped in, backtracking on quantitative tightening plans with a £65bn bond-buying program to stem a crisis in government debt markets. Euro Area growth continues to decelerate while inflation moves higher, reaching 9.1% y/y in August and looking to step into double digits. Putin’s escalation of the war has added to the already going energy crisis for Euro countries. Weaker global demand has been materially dragging exports growth in the Asian economies of China, South Korea and Taiwan, this was led by the decline of exports to developed markets.

The month of September was the worst month for stocks which was largely driven by central banks tightening in response to inflation, Fed hiked by 75bps, longer term inflation expectations remain well anchored and still tight labor markets continue to reflect resilience in the US economy. Euro Area growth continues to decelerate with inflation moving higher and the ongoing energy crisis. Weaker global demand has been dragging exports growth in the Asian economies of China, South Korea and Taiwan.


Outlook

It’s possible risk-taking will not be rewarded over the next year (we think we are in the contraction phase of the cycle). REITS are favored as they offer income and inflation should moderate growth in rentals. EM assets look attractive from a valuation perspective. While USD is expensive, dollar strength could very well continue as risk aversion rises.

The good news is that economic outcomes now appear to be more in line with expectations. The rise in yields (though largely due to compensating for greater policy/recession risk) gives a better long-term starting point for most assets.

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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.

This information is of a general nature and has been prepared without taking into account of your objectives, financial situation or needs. You should consider whether the information is appropriate for you having regard to your objectives, financial situation and needs. We recommend that you read the relevant Product Disclosure Statement (PDS) available here, or by calling 133 665 before deciding whether to acquire, or to continue to hold, the product.

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