OnePath International Shares Index (Hedged)

 

Features

Information

APIR codeMMF1818AU
Minimum suggested Investment time frame7+ years
Growth/defensiveGrowth 100%
FE fundinfo sectorEquity - Global Hedged
Income distribution frequencyQuarterly
Total fees and costs as at 9 February 20220.31% pa
Fund size$16.20m
Inception date15 November 2010

Investment minimums

Please refer to PDS 

Pricing

Price date30/09/2022
Entry$2.6876
Exit$2.6889

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 returns (income and capital appreciation) of the MSCI World ex-Australia (with net dividends reinvested) hedged into Australian dollars Index, before taking into account fees, expenses, and tax.

Investment strategy

The fund meets its investment strategy by investing in the OnePath International Shares Index Fund, forward foreign exchange contracts and futures. The fund is exposed to all of the securities in the index most of the time, allowing for individual security weightings to vary marginally from the index from time to time. The fund may be exposed to securities that have been removed from or are expected to be included in the index.

Investor profile

The Fund is intended to be suitable for investors seeking to track the returns (income and capital appreciation) of the MSCI World ex-Australia (with net dividends reinvested) hedged into Australian dollars Index.

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-4.57%-17.63%-21.43%-15.94%3.24%4.35%
FE Sector-5.38%-17.52%-21.25%-16.79%2.64%3.67%

Calendar Performance

Performance Bar chart
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31/12/202131/12/202031/12/201931/12/201831/12/2017
Fund20.84%8.66%23.25%-7.27%17.32%
FE Sector19.46%7.95%20.98%-7.48%18.91%

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

Breakdown pie chart
International shares99.53%
Cash and short-term securities0.47%

Actual versus target asset allocation as at 30/09/2022

Regional breakdown

USA70.77%
Japan6.14%
Other5.39%
UK4.63%
Canada3.57%
France3.02%
Germany2.03%
Switzerland2.01%
Netherlands1.52%
Sweden0.91%

Manager diversification within each asset class as at 30/09/2022

Breakdown pie chart

Top holdings - as at 30/09/2022

Name
Weight
Apple Inc.
4.96%
Microsoft Corporation
3.67%
Amazon.com, Inc.
2.28%
Tesla Inc
1.54%
Alphabet Inc. Class A
1.27%
Alphabet Inc. Class C
1.21%
UnitedHealth Group Incorporated
1.05%
Johnson & Johnson
0.95%
Exxon Mobil Corporation
0.82%
Berkshire Hathaway Inc. Class B
0.76%

Market and portfolio review

The OnePath Global Shares – Global Infrastructure (Hedged) Index Pool portfolio returned -5.24% during the one-month period ending 30 September 2022. The portfolio slightly overperformed the underlying index, the FTSE Developed Core Infrastructure 50/50 AUD Hedged Index, which returned -5.27% during the same period. The portfolio provides exposure to core infrastructure businesses, namely transportation, energy, and telecommunications. The portfolio's currency exposure to any single foreign currency is hedged into AUD using currency forwards. There was no positive contributor to absolute performance during the period. Exposure to Utilities (-3.39%), Industrials (-1.98%) and Real Estate (-0.65%) were top negative contributor to absolute performance. From a country perspective, Italy was the only positive contributor to absolute performance (+0.08%). Country exposures that detracted from absolute performance were United States (-3.61%), followed by the Australia (-0.96%), and Canada (-0.54%). Among individual securities, Atlantia S.p.A was the largest positive contributor to absolute performance (+0.15%) while Transurban Group Ltd. was the largest detractor on an absolute basis (-0.58%).

Future investment strategy

The month of September has historically been the worst month of the year for stocks, both on average and median over the past 100 years. The downturn was largely driven by central banks tightening in response to inflation, Fed hiked by 75bps, and in the FOMC press conference Fed Chair Jay Powell suggested greater willingness to keep hiking amidst a weakening economy if inflation remains high. On the other side, longer term inflation expectations remain well anchored and still tight labor markets continue to reflect resilience in the US economy. The mid-June rally is increasingly looking like a “dead-cat bounce”, with the S&P 500 back to late 2020 levels. MSCI World ended the month down -9.25%, with all sectors falling. Treasury yields moved higher with the 10-year briefly topping 4%.

From a regional perspective, in UK the loosening fiscal policy ran against the grain of the BoE’s efforts to bring inflation down via rate hikes. Sterling fell and Gilt yields rose drastically until the BoE stepped in, backtracking on quantitative tightening plans with a £65bn bond-buying program to stem a crisis in government debt markets. Euro Area growth continues to decelerate while inflation moves higher, reaching 9.1% y/y in August and looking to step into double digits. Putin’s escalation of the war has added to the already going energy crisis for Euro countries. Weaker global demand has been materially dragging exports growth in the Asian economies of China, South Korea and Taiwan, this was led by the decline of exports to developed markets.

The month of September was the worst month for stocks which was largely driven by central banks tightening in response to inflation, Fed hiked by 75bps, longer term inflation expectations remain well anchored and still tight labor markets continue to reflect resilience in the US economy. Euro Area growth continues to decelerate with inflation moving higher and the ongoing energy crisis. Weaker global demand has been dragging exports growth in the Asian economies of China, South Korea and Taiwan.


Outlook

It’s possible risk-taking will not be rewarded over the next year (we think we are in the contraction phase of the cycle). REITS are favored as they offer income and inflation should moderate growth in rentals. EM assets look attractive from a valuation perspective. While USD is expensive, dollar strength could very well continue as risk aversion rises.

The good news is that economic outcomes now appear to be more in line with expectations. The rise in yields (though largely due to compensating for greater policy/recession risk) gives a better long-term starting point for most assets.

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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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