OnePath Australian Property Securities Index

 

Features

Information

APIR codeMMF1696AU
Minimum suggested Investment time frame5+ years
Growth/defensiveGrowth 100%
FE fundinfo sectorProperty - Australia
Income distribution frequencyQuarterly
Total fees and costs as at 9 February 20220.3% pa
Fund size$25.71m
Inception date15 November 2010

Investment minimums

Please refer to PDS 

Pricing

Price date30/09/2022
Entry$2.4098
Exit$2.4112

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 (income and capital appreciation) of the S&P/ASX 300 A-REIT Index before taking into account fees, expenses and tax.

Investment strategy

The S&P/ASX 300 A-REIT Index comprises property securities (shares) listed on the Australian Securities Exchange (ASX). These securities are real estate investment trusts and companies that own real estate assets and derive a significant proportion of their revenue from rental income.The fund will hold all of the securities in the index most of the time.

Investor profile

The Fund is intended to be suitable for investors seeking to track the return (income and capital appreciation) of the S&P/ASX 300 A-REIT Index.

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-6.96%-23.34%-28.53%-21.42%-5.17%2.42%
FE Sector-6.47%-19.97%-23.42%-17.01%-3.98%2.23%

Calendar Performance

Performance Bar chart
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31/12/202131/12/202031/12/201931/12/201831/12/2017
Fund26.20%-4.54%18.58%2.62%5.88%
FE Sector23.02%-5.99%17.85%-0.10%7.16%

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 property98.48%
Cash and short-term securities1.52%

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

Sector allocation as at 30/09/2022

NameWeight
Real Estate98.54%
Futures1.64%
Cash-0.18%

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

Breakdown pie chart

Top holdings - as at 30/09/2022

Name
Weight
Goodman Group
23.76%
Scentre Group
11.68%
Dexus
7.35%
Stockland
6.91%
Mirvac Group
6.80%
GPT Group
6.50%
Vicinity Centres
5.95%
Charter Hall Group
4.81%
Shopping Centres Australasia Property Group RE Ltd.
2.32%
Charter Hall Long WALE REIT
2.29%

Market and portfolio review

The OnePath Australian Listed Property Index Pool portfolio returned -10.35% during the one-month period ending 30 September 2022. The portfolio overperformed the underlying index, the S&P/ASX 300 A-REIT Index, which returned -10.39% during the same period. The portfolio is solely exposed to the Real Estate sector with a focus on Australian Real Estate investment trusts (A-REITs) and mortgage REITs. There were no REIT sectors that contributed positively to absolute performance. Top 3 REIT industries that negatively contributed to absolute performance were Industrials REITS (-5.38%), Retail REITS (-3.18%) and Diversified REITS (-2.91%). Among individual securities, there were no positive contributor to absolute performance, while Goodman Group (-5.13%) largest detractor to absolute performance.

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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