OnePath Conservative Index

 

Features

Information

APIR codeMMF1690AU
Minimum suggested Investment time frame3+ years
Growth/defensiveGrowth 30% / Defensive 70%
FE fundinfo sectorMixed Asset - Moderate
Income distribution frequencyQuarterly
Total fees and costs as at 9 February 20220.31% pa
Fund size$321.88m
Inception date15 November 2010

Investment minimums

Please refer to PDS 

Pricing

Price date31/03/2022
Entry$1.8559
Exit$1.8574

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 fund’s and/or direct assets to achieve the mix of assets in line with it's Asset Allocation targets.The portfolio targets a 70% allocation to income asset classes (cash and fixed interest securities) and a 30% 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 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-4.21%-3.23%-4.21%0.25%3.45%4.07%
FE Sector-2.56%-1.52%-2.56%1.97%3.08%3.29%

Calendar Performance

Performance Bar chart
Powered by data from FE fundinfo
31/12/202131/12/202031/12/201931/12/201831/12/2017
Fund4.45%4.46%11.40%0.49%5.63%
FE Sector5.26%2.15%8.88%-0.47%4.88%

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 31/03/2022

Breakdown pie chart
Australian shares12.61%
International shares18.53%
Australian fixed interest17.54%
International fixed interest41.29%
Cash and short-term securities10.03%

Actual versus target asset allocation as at 31/03/2022

Manager diversification within each asset class as at 31/03/2022

Breakdown pie chart

Top holdings - Australian shares as at 31/03/2022

BHP Group Ltd1.43%
Commonwealth Bank of Australia0.99%
CSL Limited0.70%
National Australia Bank Limited0.57%
Westpac Banking Corporation0.46%
Australia and New Zealand Banking Group Limited0.42%
Macquarie Group Limited0.40%
Wesfarmers Limited0.31%
Telstra Corporation Limited0.25%
Woolworths Group Ltd0.25%

Top holdings - International shares as at 31/03/2022

Apple Inc.0.92%
Microsoft Corporation0.70%
Amazon.com, Inc.0.48%
Tesla Inc0.29%
Alphabet Inc. Class A0.27%
Alphabet Inc. Class C0.26%
NVIDIA Corporation0.22%
Meta Platforms Inc. Class A0.17%
UnitedHealth Group Incorporated0.15%
Johnson & Johnson0.15%

Market and portfolio review

Global equities posted losses for the period, experiencing a major sell-off before experiencing a partial rebound in March. Developed and developing market stocks came under pressure as concerns grew about aggressive central bank tightening, especially from the Fed, as well as the Russia-Ukraine conflict. Only a few major stock markets were able to post gains for the quarter, including Canada and the UK. Eurozone, with its dependency on Russia for oil and gas, saw a sharp decline for the period. Emerging markets were also down, and Russia was removed from the MSCI Emerging Markets Index on March 9, at a price that is effectively zero. US equities declined in the first quarter as inflation continued to rise over the period.

During the fourth quarter, Global fixed income also posted losses for the quarter, with weakness in government bonds, investment grade and high yield bonds. Corporate bonds underperformed both high yield and government bonds for the quarter. The yield spread between investment grade and high yield bonds finished slightly higher for the period. The 10-year US Treasury yield rose significantly – approximately 80 basis points – during this period on anticipation of more aggressive Fed tightening. Rates on the short end of the yield curve also rose substantially, resulting in an inversion of the 2s-10s yield curve by the end of the quarter.

Future investment strategy

Our outlook remains centered on the question of inflation and how markets and policymakers may react to it. The Russia-Ukraine crisis has exacerbated inflationary pressures and increased the risk of recession, especially for the eurozone economy.

Our base case scenario is that the global economy continues to slow. We believe the Fed will be able to engineer a ‘soft landing’ and avoid a US recession. We anticipate inflation in the US and other developed countries will peak later this year and then start to moderate. We expect China’s economy will re-accelerate in the back half of the year, helped by monetary and fiscal stimulus.

From a relative asset allocation perspective, our base case expectations lead us to a modest risk posture, with a slight overweighting of equities. While equity valuations are lower and dividend yields have increased since the start of the year, the profit outlook is less certain, which results in a preference for defensive and growth sectors. We prefer quality and large caps in this scenario, given slowing growth expectations. Within fixed income, we favor floating rate bonds given the rising rate environment. We continue to anticipate that alternatives such as real estate and commodities can outperform given inflationary pressures.

We continue to favor broad diversification within the equity and fixed income allocations of one’s portfolio. We also favor adequate exposure to cash and alternative asset classes, including real estate, gold, and commodities. We strongly encourage investors to remain well diversified in this environment.

NameOnePath Conservative Index
PDSPDS
TMDTMD
ChartChart

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.

Powered by data from FE fundinfo