OnePath Diversified Bond Index
Features
Information
Investment minimums
Pricing
Standard risk measure
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | |
|---|---|---|---|---|---|---|---|
| Standard Risk Measure |
A Standard Risk Measure score of 6 equates to a Risk Label of 'High' and an estimated number of negative annual returns over any 20 year period of 4 to less than 6. 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 a tailored diversified index representing a 30% allocation to the Bloomberg AusBond Composite 0+ Yr Index and a 70% allocation to the Bloomberg Barclays Global Aggregate Index (hedged to Australian dollars), before taking into account fees, expenses and tax.
Investment strategy
The fund invests in Australian and international bonds by holding units in a range of underlying fund’s and/or direct assets.The fund seeks to reduce credit risk in the portfolio by selecting only bonds with a sufficiently high credit rating and by diversifying the fund’s holding across issuers.Futures may be used to gain market exposure without investing directly in fixed interest securities.
Investor profile
The Fund is intended to be suitable for investors seeking to track a tailored diversified index representing a 30% allocation to the Bloomberg AusBond Composite 0+ Yr Index and a 70% allocation to the Bloomberg Barclays Global Aggregate Index (hedged to Australian dollars).
Research house ratings
Rating
Meet the manager(s)
Cumulative performance
| 3 months | 6 months | Year to date | 1 year | 3 years pa | 5 years pa | ||
|---|---|---|---|---|---|---|---|
| Fund | -1.12% | 1.81% | 1.81% | -0.52% | -3.85% | -0.16% | |
| FE Sector | -1.54% | 1.27% | 1.27% | 0.81% | -1.93% | 0.25% |
Calendar Performance
| 31/12/2022 | 31/12/2021 | 31/12/2020 | 31/12/2019 | 31/12/2018 | ||
|---|---|---|---|---|---|---|
| Fund | -11.58% | -2.48% | 4.32% | 6.61% | 1.81% | |
| FE Sector | -6.72% | -1.57% | 3.06% | 4.58% | 1.82% |
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 30/06/2023
| Australian fixed interest | 29.92% | |
| International fixed interest | 69.78% | |
| Cash and short-term securities | 0.30% |
Actual versus target asset allocation as at 30/06/2023
Top holdings - as at 31/12/2022
Market and portfolio review
The OnePath Australian Bonds Index Pool portfolio returned -1.96% during the one month ending 30 June 2023. The portfolio tracked the underlying index, the Bloomberg AusBond Composite 0+ Year Index, which returned -1.95% during the same period. The credit rating, yield, and duration characteristics are also similar between the portfolio and the underlying index. The portfolio aims to provide broad exposure to the Australian debt market across treasury, semi-Govt, supra/sov, and credit bonds with a target maturity of 0+ years. No sector positively contributed to absolute performance. Treasuries (-1.21%), Government-Related (-0.66%), and Corporates (-0.08%) contributed negatively to absolute performance.
Future investment strategy
Bond market total returns proved positive in March, as the banking sector crisis drove yields lower across the curve. The Fed also hiked interest rates by 25 basis points during the month. The 2-year treasury yield fell from 4.81% to 4.06%, the 5-year treasury ended lower from 4.18% to 3.60%, and the 10-year treasury dropped from 3.92% to 3.48%.
Investment grade (IG) corporates underperformed duration-matched treasuries for the month, as the US banking crisis resulted in wider spread premiums across sectors, especially in financials. Issuance fell for the month as new deals slowed given market volatility and uncertainties regarding the stability of the banking sector. Supply ended the month at $117 billion in March versus $180 billion in February.
High yield corporates also lagged comparable maturity treasuries, as market stresses weighed on appetites for riskier credit. New issuance fell during the month, down from $14 billion to $5 billion by the end of March.
Structured credit trailed treasuries for the month, as interest rate volatility weighed on relative valuations across the credit and maturity curves. CMBS was the weakest performer, behind ABS and MBS, as commercial real estate (CRE) woes became amplified given regional bank tumult, where most CRE loans reside.
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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