OnePath Diversified Bond Index

 

Features

Information

APIR codeMMF1571AU
Minimum suggested Investment time frame3+ years
Growth/defensiveDefensive 100%
FE fundinfo sectorFixed Int - Australia / Global Bond
Income distribution frequencyQuarterly
Total fees and costs as at 9 February 20220.3% pa
Fund size$9.75m
Inception date15 November 2010

Investment minimums

Please refer to PDS 

Pricing

Price date30/09/2022
Entry$0.7589
Exit$0.7600

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 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

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-2.71%-7.13%-11.97%-12.37%-4.01%-0.36%
FE Sector-1.77%-5.73%-10.02%-10.73%-2.79%0.27%

Calendar Performance

Performance Bar chart
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31/12/202131/12/202031/12/201931/12/201831/12/2017
Fund-2.49%4.32%6.69%1.83%2.92%
FE Sector-1.71%4.47%6.38%2.10%3.47%

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 fixed interest29.95%
International fixed interest69.96%
Cash and short-term securities0.09%

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 - as at 30/09/2022

Name
Weight
Australia (Commonwealth Of)
16.78%
United States Of America
13.65%
Japan (Government Of)
9.59%
China Peoples Republic Of (Government)
7.00%
France (Republic Of)
2.80%
United Kingdom Of Great Britain And Northern Ireland (Government)
2.52%
Germany (Federal Republic Of)
2.24%
Queensland (State Of)
2.07%
Victoria (State Of)
2.01%
Italy (Republic Of)
1.96%

Market and portfolio review

Bond market returns were negative in August due to the rise in interest rates after the Federal reserve indicated that aggressive policy would remain in the near term.

The US treasury curve jumped over the month across all maturities, with 2-year rate increasing from 2.89% to 3.45%, the 5-year rate was up from 2.70% to 3.30%, and the 10-year rate increased from 2.67% to 3.15%.

Investment grade (IG) corporates slightly outperformed duration-matched treasuries in August, with demand for intermediate credit remaining supportive despite market volatility and a jump in new issuance. Supply rose month over month, up from $98 billion in July to $135 billion in August.

High yield corporates underperformed versus comparable maturity treasuries, with waning risk appetites weighing on the sector. New issuance increased during the month, up from $2 billion to $8 billion by month-end.

ABS outperformed similar-duration treasures with demand for short-dated credit remaining favorable, while relative results in CMBS were flat for the period.

Future investment strategy

The focus on corporate credit remains a key theme in the market, with valuations appearing increasingly attractive given the continued rise in rates. Credit fundamentals also remain a positive backstop against a decline in economic activity given balance sheet strength across sectors. Lower-rated credit remains attractive given the opportunity for additional yield; and duration positioning remains favored towards short and intermediate maturities.

Growth is slowing globally, due to aggressive monetary policy and tightening of financial conditions. Market volatility remains with global energy prices and supply chain constraints continuing to add pressure, even with policy makers actively attempting to reduce risks. Monetary policy remains hawkish but in-line with expectations as several aggressive rate hikes remain priced in for 2022 along with continued quantitative tightening. We favor longer duration government bonds and high-quality credit.

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 Investment Portfolio is issued by OnePath Funds Management Limited ABN 21 003 002 800 AFSL 238342.

The information provided in this table is a brief outline of the major features of OneAnswer Frontier Investment Portfolio. 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 Investment Portfolio.

The information is of a general nature and has been prepared without taking into account your objectives, financial situation and 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 PDS before deciding to acquire, or to continue to hold, the product.

The PDS can be located under the following links: Product Disclosure Statement (Part One) (690kb) and Investment Funds Guide (PDS Part Two) (1,018kb) and should be read in conjunction with the Additional Information Guide.

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