OnePath Growth 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 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 asset classes 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 to achieve the mix of assets.The portfolio targets a 30% allocation to income asset classes (cash and fixed interest securities) and a 70% allocation to growth asset classes (property securities and shares).
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
Meet the manager(s)
Cumulative performance
| 3 months | 6 months | Year to date | 1 year | 3 years pa | 5 years pa | ||
|---|---|---|---|---|---|---|---|
| Fund | -1.02% | -8.89% | -12.28% | -9.97% | 1.60% | 4.53% | |
| FE Sector | -0.70% | -7.05% | -9.32% | -7.07% | 1.95% | 4.16% |
Calendar Performance
| 31/12/2021 | 31/12/2020 | 31/12/2019 | 31/12/2018 | 31/12/2017 | ||
|---|---|---|---|---|---|---|
| Fund | 12.21% | 4.49% | 17.54% | -1.12% | 8.64% | |
| FE Sector | 12.58% | 1.92% | 15.44% | -2.07% | 8.78% |
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
| Australian shares | 27.72% | |
| International shares | 42.27% | |
| Australian fixed interest | 9.12% | |
| International fixed interest | 20.85% | |
| Cash and short-term securities | 0.04% |
Actual versus target asset allocation as at 30/09/2022
Top holdings - Australian shares as at 30/09/2022
| BHP Group Ltd | 2.70% |
| Commonwealth Bank of Australia | 2.14% |
| CSL Limited | 1.90% |
| National Australia Bank Limited | 1.27% |
| Westpac Banking Corporation | 1.00% |
| Australia and New Zealand Banking Group Limited | 0.94% |
| Woodside Energy Group Ltd | 0.83% |
| Macquarie Group, Ltd. | 0.77% |
| Wesfarmers Limited | 0.67% |
| Telstra Corporation Limited | 0.62% |
Top holdings - International shares as at 30/09/2022
| Apple Inc. | 2.10% |
| Microsoft Corporation | 1.55% |
| Amazon.com, Inc. | 0.97% |
| Tesla Inc | 0.65% |
| Alphabet Inc. Class A | 0.54% |
| Alphabet Inc. Class C | 0.51% |
| UnitedHealth Group Incorporated | 0.44% |
| Johnson & Johnson | 0.40% |
| Exxon Mobil Corporation | 0.34% |
| Berkshire Hathaway Inc. Class B | 0.32% |
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 Personal Super is issued by OnePath Custodians Pty Limited (OnePath Custodians) ABN 12 008 508 496 AFSL 238346).
The information provided on this table is a brief outline of the major features of OneAnswer Frontier Personal Super. It is intended as a quick and easy reference source for investors. The table should not be used as a substitute for reading the Product Disclosure Statement (PDS) prior to you making any decision to invest through OneAnswer Frontier Personal Super.
The information provided is of a general nature and does not take into account your personal needs and financial circumstances. You should consider the appropriateness of the information, 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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