OnePath Balanced Index

 

Features

Information

APIR codeMMF1689AU
Minimum suggested Investment time frame5+ years
Growth/defensiveGrowth 50% / Defensive 50%
FE fundinfo sectorMixed Asset - Balanced
Income distribution frequencyQuarterly
Total fees and costs as at 9 February 20220.31% pa
Fund size$699.51m
Inception date15 November 2010

Investment minimums

Please refer to PDS 

Pricing

Price date30/09/2022
Entry$2.0050
Exit$2.0067

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 weighted average return of the various indices of the underlying funds in which the fund invests, in proportion to the strategic asset allocation (SAA) for the fund, before taking into account fees, expenses, and tax.

Investment strategy

The fund holds units in a range of underlying funds and/or direct assets.The portfolio targets a 50% allocation to income asset classes (cash and fixed interest securities) and a 50% allocation to growth asset classes (property securities and shares). Actual allocations are permitted to deviate from the strategic asset allocations provided they remain within the specified ranges.

Investor profile

The Fund is intended to be suitable for investors seeking to track the weighted average returns of the various indices of the underlying funds in which the fund invests

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
Powered by data from FE fundinfo
3 months6 monthsYear to date1 year3 years pa5 years pa
Fund-1.62%-9.10%-13.09%-11.40%0.16%3.47%
FE Sector-0.74%-6.56%-9.07%-7.32%1.37%3.60%

Calendar Performance

Performance Bar chart
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31/12/202131/12/202031/12/201931/12/201831/12/2017
Fund8.89%4.95%15.60%-0.41%7.62%
FE Sector10.05%2.79%12.93%-0.90%7.68%

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
Australian shares19.82%
International shares30.01%
Australian fixed interest15.08%
International fixed interest35.07%
Cash and short-term securities0.02%

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

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

Breakdown pie chart

Top holdings - Australian shares as at 30/09/2022

BHP Group Ltd1.93%
Commonwealth Bank of Australia1.53%
CSL Limited1.36%
National Australia Bank Limited0.90%
Westpac Banking Corporation0.71%
Australia and New Zealand Banking Group Limited0.67%
Woodside Energy Group Ltd0.59%
Macquarie Group, Ltd.0.55%
Wesfarmers Limited0.48%
Telstra Corporation Limited0.44%

Top holdings - International shares as at 30/09/2022

Apple Inc.1.49%
Microsoft Corporation1.10%
Amazon.com, Inc.0.69%
Tesla Inc0.46%
Alphabet Inc. Class A0.38%
Alphabet Inc. Class C0.36%
UnitedHealth Group Incorporated0.31%
Johnson & Johnson0.29%
Exxon Mobil Corporation0.24%
Berkshire Hathaway Inc. Class B0.23%

Market and portfolio review

The second quarter was a very difficult period for global markets given the challenging economic environment. Inflation remained very problematic in the quarter. Many developed economies experienced a slowdown during this period, as developed central banks continued to normalize monetary policy. In addition, China’s economic growth experienced a serious negative impact from a COVID-19 wave that resulted in further shutdowns.

The 10-year U.S. Treasury yield went on a roller coaster ride in the second quarter, starting at 2.375% at the start, rising to a peak of nearly 3.5% and then finishing slightly below 3%. The 2s10s yield curve, which was slightly inverted at the start of the quarter, rose to more than 40 basis points before flattening by quarter end. Driving these swings were expectations about monetary policy tightening and economic growth.

Major developed central banks such as the U.S. Federal Reserve (the “Fed”), the Bank of Canada and the Bank of England all took steps to tighten monetary policy during the period, as inflation remained persistent. Even the Swiss National Bank made a surprise decision in June to tighten monetary policy, suggesting the era of ultra-loose monetary policy had come to an end due to serious inflation concerns.

Future investment strategy

Our base-case scenario is that the global economy continues to slow. We still believe the Fed will be able to engineer a “soft landing” and avoid a U.S. recession, although it admittedly is becoming more difficult. The fate of developed market economies, including the U.S. and Canada, is largely dependent on the path of inflation, which will largely dictate how aggressive their respective central banks are in response. We anticipate inflation in the U.S. and other developed countries will soon peak and then start to moderate.

Emerging markets are also facing headwinds given high inflation, with high energy and food prices depressing real incomes. However, many Asian emerging-market economies are poised for better growth in the second half of 2022. We expect China’s economy will reaccelerate in the back half of the year, helped by a post-COVID reopening as well as monetary and fiscal stimulus. Other Asian emerging-market countries should also benefit from this reopening and reacceleration.

From a relative asset allocation perspective, our base-case expectations lead us to a relatively neutral risk stance tactically, with a slight overweighting to equities. Given that we anticipate a global slowdown, we expect modest positive returns with narrow dispersion in performance of fixed income and equities. In this environment, we prefer a slight overweight to equities relative to fixed income, with equity exposure tilted to defensives, quality and low volatility. Within fixed income, we prefer quality credit. Within commodities, we prefer energy, value add real estate and core plus infrastructure.

We continue to favor broad diversification within the equity and fixed-income allocations of one’s portfolio for the longer term. We also favor adequate exposure to cash and alternative asset classes. We strongly encourage investors to remain well diversified in this environment.

This website contains general advice only and does not take into account your financial circumstances, needs and objectives. Before making any decision based on this information, you should assess your own circumstances or seek advice from a financial adviser. You should obtain and consider a copy of the relevant Product Disclosure Statement (PDS) or offer document available from us or your financial adviser, before you acquire a financial product.

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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