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 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 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 | 2.38% | 7.11% | 7.11% | 10.46% | 6.16% | 5.35% | |
| FE Sector | 1.52% | 4.66% | 4.66% | 8.23% | 6.48% | 4.65% |
Calendar Performance
| 31/12/2022 | 31/12/2021 | 31/12/2020 | 31/12/2019 | 31/12/2018 | ||
|---|---|---|---|---|---|---|
| Fund | -8.61% | 12.21% | 4.49% | 17.54% | -1.12% | |
| FE Sector | -5.56% | 12.58% | 1.92% | 15.44% | -2.07% |
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 shares | 27.52% | |
| International shares | 42.85% | |
| Australian fixed interest | 8.79% | |
| International fixed interest | 20.69% | |
| Cash and short-term securities | 0.15% |
Actual versus target asset allocation as at 30/06/2023
Top holdings - Australian shares as at 30/06/2023
| BHP Group Ltd | 2.85% |
| Commonwealth Bank of Australia | 2.11% |
| CSL Limited | 1.67% |
| National Australia Bank Limited | 1.03% |
| Westpac Banking Corporation | 0.94% |
| ANZ Group Holdings Limited | 0.89% |
| Woodside Energy Group Ltd | 0.82% |
| Macquarie Group, Ltd. | 0.81% |
| Wesfarmers Limited | 0.70% |
| Telstra Group Limited | 0.62% |
Top holdings - International shares as at 30/06/2023
| Apple Inc. | 2.36% |
| Microsoft Corporation | 1.85% |
| Amazon.com, Inc. | 0.92% |
| NVIDIA Corporation | 0.80% |
| Tesla, Inc. | 0.57% |
| Alphabet Inc. Class A | 0.55% |
| Alphabet Inc. Class C | 0.50% |
| Meta Platforms Inc. Class A | 0.49% |
| UnitedHealth Group Incorporated | 0.34% |
| Berkshire Hathaway Inc. Class B | 0.34% |
Market and portfolio review
The last quarter of 2022 saw a continuation of monetary policy tightening by Western developed central banks, although many reduced the size of their rate hikes. The 2s-10s yield curve inverted more deeply during this period. The effects of rapid and aggressive policy tightening on economic growth became more evident. Leading economic indicators continue to weaken, suggesting that growth is likely to be below trend across regions. Inflation appeared to peak in some major Western economies later in 2022, including the United States and Canada. However, it remains substantially higher than central bank inflation targets. The U.S. dollar weakened against other major currencies in the fourth quarter. Anticipation of a U.S. Federal Reserve pause in the near future, along with expectations of other central banks becoming more hawkish in relative terms, contributed to the dollar’s relative softening.
The final quarter of 2022 offered a reprieve for both global equities and global fixed income, with major asset classes posting positive returns after a challenging environment in the first three quarters of the year.
Alternative asset classes also experienced gains in the fourth quarter. Commodities posted positive returns, with industrials and precious metals performing particularly well. Global REITs also posted gains, rebounding after losses in the third quarter.
Future investment strategy
Not surprisingly, the outlook for 2023 is largely dependent on the path of monetary policy, which in turn is heavily reliant on the path of inflation. Our base case is that inflation will moderate, leading to a pause in central bank tightening in the first half of 2023. We expect a rising global risk appetite, reflecting a positive repricing of recession risks in terms of timing, duration and magnitude.
In the shorter term, we expect a tug of war between “risk on” and “risk off” market environments. However, as the year unfolds, we expect risk assets to perform better, which is likely to result in better relative performance for equity markets in value-oriented regions and cyclical sectors of the stock market, as well as risky credit and investment grade credit. Currency preferences include the Australian dollar, Canadian dollar and Brazilian real as we expect the U.S. dollar to continue to weaken.