OnePath Diversified Bond Index
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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.
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.
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.
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).
3 months | 6 months | Year to date | 1 year | 3 years pa | 5 years pa | ||
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Fund | -0.99% | 1.57% | 1.57% | -0.47% | -3.69% | -0.28% | |
FE Sector | -1.27% | 1.62% | 1.62% | 0.99% | -1.69% | 0.26% |
31/12/2022 | 31/12/2021 | 31/12/2020 | 31/12/2019 | 31/12/2018 | ||
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Fund | -10.30% | -2.87% | 3.70% | 5.97% | 1.57% | |
FE Sector | -6.55% | -1.49% | 2.91% | 4.36% | 1.38% |
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.
Australian fixed interest | 29.92% | |
International fixed interest | 69.78% | |
Cash and short-term securities | 0.30% |
The asset allocations shown may not total 100% due to the effects of rounding
The OnePath Australian Bonds Index Pool portfolio returned -1.96% during the one month ending 30 June 2023. The portfolio tracked the underlying index, the Bloomberg AusBond Composite 0+ Year Index, which returned -1.95% during the same period. The credit rating, yield, and duration characteristics are also similar between the portfolio and the underlying index. The portfolio aims to provide broad exposure to the Australian debt market across treasury, semi-Govt, supra/sov, and credit bonds with a target maturity of 0+ years. No sector positively contributed to absolute performance. Treasuries (-1.21%), Government-Related (-0.66%), and Corporates (-0.08%) contributed negatively to absolute performance.
Bond market total returns proved positive in March, as the banking sector crisis drove yields lower across the curve. The Fed also hiked interest rates by 25 basis points during the month. The 2-year treasury yield fell from 4.81% to 4.06%, the 5-year treasury ended lower from 4.18% to 3.60%, and the 10-year treasury dropped from 3.92% to 3.48%.
Investment grade (IG) corporates underperformed duration-matched treasuries for the month, as the US banking crisis resulted in wider spread premiums across sectors, especially in financials. Issuance fell for the month as new deals slowed given market volatility and uncertainties regarding the stability of the banking sector. Supply ended the month at $117 billion in March versus $180 billion in February.
High yield corporates also lagged comparable maturity treasuries, as market stresses weighed on appetites for riskier credit. New issuance fell during the month, down from $14 billion to $5 billion by the end of March.
Structured credit trailed treasuries for the month, as interest rate volatility weighed on relative valuations across the credit and maturity curves. CMBS was the weakest performer, behind ABS and MBS, as commercial real estate (CRE) woes became amplified given regional bank tumult, where most CRE loans reside.