OnePath Diversified Bond Index

 

Features

Information

APIR codeMMF1816AU
Minimum suggested Investment time frame3+ years
Growth/defensiveDefensive 100%
FE fundinfo sectorFixed Int - Australian Dollar
Income distribution frequencyQuarterly
Total fees and costs as at 9 February 20220.3% pa
Fund size$21.58m
Inception date15 November 2010

Investment minimums

Please refer to PDS 

Pricing

Price date31/03/2022
Entry$1.4372
Exit$1.4388

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-4.64%-5.02%-4.64%-4.73%-0.28%1.04%
FE Sector-3.24%-3.83%-3.24%-3.12%0.11%1.03%

Calendar Performance

Performance Bar chart
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31/12/202131/12/202031/12/201931/12/201831/12/2017
Fund-2.87%3.70%5.97%1.57%2.51%
FE Sector-1.49%2.91%4.36%1.38%2.20%

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

Breakdown pie chart
Australian fixed interest29.73%
International fixed interest70.20%
Cash and short-term securities0.07%

Actual versus target asset allocation as at 31/03/2022

Manager diversification within each asset class as at 31/03/2022

Breakdown pie chart

Top holdings - as at 31/03/2022

Name
Weight
Australia Government Bond
16.67%
United States Treasury
12.91%
Japan (Government Of)
9.83%
China Government Bond
6.57%
France (Republic Of)
2.90%
United Kingdom Of Great Britain And Northern Ireland (Government)
2.71%
Germany (Federal Republic Of)
2.39%
Italy (Republic Of)
2.35%
Queensland Treasury Corporation
2.24%
Treasury Corporation Of Victoria
1.92%

Market and portfolio review

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 where within fixed income we favor floating rate bonds given the rising rate environment.

NameOnePath Diversified Bond Index
PDSPDS
TMDTMD
ChartChart

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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.

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