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 | -3.73% | -1.19% | -3.73% | 5.23% | 7.11% | 6.95% | |
| FE Sector | -2.44% | -0.02% | -2.44% | 6.65% | 6.46% | 6.15% |
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 31/03/2022
| Australian shares | 28.70% | |
| International shares | 42.38% | |
| Australian fixed interest | 8.61% | |
| International fixed interest | 20.28% | |
| Cash and short-term securities | 0.03% |
Actual versus target asset allocation as at 31/03/2022
Top holdings - Australian shares as at 31/03/2022
| BHP Group Ltd | 3.26% |
| Commonwealth Bank of Australia | 2.24% |
| CSL Limited | 1.60% |
| National Australia Bank Limited | 1.30% |
| Westpac Banking Corporation | 1.06% |
| Australia and New Zealand Banking Group Limited | 0.97% |
| Macquarie Group Limited | 0.91% |
| Wesfarmers Limited | 0.71% |
| Telstra Corporation Limited | 0.58% |
| Woolworths Group Ltd | 0.56% |
Top holdings - International shares as at 31/03/2022
| Apple Inc. | 2.10% |
| Microsoft Corporation | 1.61% |
| Amazon.com, Inc. | 1.09% |
| Tesla Inc | 0.67% |
| Alphabet Inc. Class A | 0.61% |
| Alphabet Inc. Class C | 0.59% |
| NVIDIA Corporation | 0.50% |
| Meta Platforms Inc. Class A | 0.39% |
| UnitedHealth Group Incorporated | 0.35% |
| Johnson & Johnson | 0.34% |
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.
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OneAnswer Frontier Personal Super is issued by OnePath Custodians Pty Limited (OnePath Custodians) ABN 12 008 508 496 AFSL 238346).
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