The fund aims to provide income and achieve returns (before fees and taxes) that on average exceed inflation by at least 4.5% p.a., over periods of ten years or more. The fund invests in a diversified mix of Australian assets with a bias towards income producing growth assets. The fund is actively managed in accordance with a disciplined investment process.
The S&P/ASX 200 Accumulation Index increased 2.88% over the month.
This gain followed softer-than-expected inflation figures from the US and Australia and a reduced risk of further rate hikes with hopes growing that the economy would undergo a soft landing. A rally in energy stocks on the back of rising oil prices also helped. Major equity markets were generally strong during the month with S&P 500 returning 3.2% in local currency terms. In local currency terms the MSCI World Index was up 2.85%.
With regards to monetary policy the Reserve Bank of Australia (RBA) in its July meeting kept the cash rate unchanged 4.1 percent. In the RBA meeting minutes members noted that inflation was now declining, albeit from a high level, and that this would help mitigate the risk of a rise in medium-term inflation expectations. Members agreed that some further tightening of monetary policy may be required to bring inflation back to target within a reasonable timeframe, but that this depended on how the economy and inflation evolve. It was also noted that mortgage interest payments would rise further as fixed-rate loans continued to mature.
Domestic data releases through July were mixed. The annual rate of inflation is 6% for the June quarter and is expected to fall further in August. While prices rose for most goods and services, there were some offsetting price falls from domestic holiday travel, accommodation, and fuel. Labour market conditions remained strong with the unemployment rate at 3.5%.
CoreLogic’s national Home Value Index (HVI) rose 0.7% in July, marking the fifth month of housing value recovery.
M & A announcements during the month included Pacific Current Group (PAC) receiving a non-binding indicative bid from Regal Partners at an implied value of $10.77/share that was followed soon after by a competing bid from GQG Partners. Costa Group also received a non-binding indicative proposal from Pain Schwartz Partners while United Malt entered into a scheme implementation deed with Malteries Soufflet to acquire 100% of UMG shares. Key contributors to performance were overweight positions in Woodside Energy, ANZ and nil positions in Macquarie Group, Woolworths and Fortescue Metals while overweight holdings in Iluka, IGO, Teslstra and Coles and an underweight holding in CBA detracted from performance.
What is OnePath Tax Effective Income Trust Wholesale Units OnePath Tax Effective Income Trust Wholesale Units is an Managed Funds investment product that is benchmarked against Multi-Asset Growth Investor Index and sits inside the Multi-Asset - 61-80% Diversified Index. Think of a benchmark as a standard where investment performance can be measured. Typically, market indices like the ASX200 and market-segment stock indexes are used for this purpose. The OnePath Tax Effective Income Trust Wholesale Units has Assets Under Management of 7.97 M with a management fee of 0.95%, a performance fee of 0.00% and a buy/sell spread fee of 0%.
How has the investment product performed recently?
The recent investment performance of the investment product shows that the OnePath Tax Effective Income Trust Wholesale Units has returned 3.31% in the last month. The previous three years have returned 5.78% annualised and 17.68% each year since inception, which is when the OnePath Tax Effective Income Trust Wholesale Units first started.
How is risk measured in this investment product?
There are many ways that the risk of an investment product can be measured, and each measurement provides a different insight into the risk present. They can be used on their own or together to perform a risk assessment before investing, but when comparing investments, it is common to compare like for like risk measurements to determine which investment holds the most risk. Since OnePath Tax Effective Income Trust Wholesale Units first started, the Sharpe ratio is NA with an annualised volatility of 17.68%. The maximum drawdown of the investment product in the last 12 months is -4.02% and -42.84% since inception. The maximum drawdown is defined as the high-to-low decline of an investment during a particular time period.
What is the relative performance of the investment product?
Relative performance is what an asset achieves over a period of time compared to similar investments or its peers. Relative return is a measure of the asset's performance compared to the return to the other investment. The OnePath Tax Effective Income Trust Wholesale Units has a 12-month excess return when compared to the Multi-Asset - 61-80% Diversified Index of 4.23% and 1.86% since inception.
Does the investment product produce Alpha over its Peers?
Alpha is an investing term used to measure an investment's outperformance relative to a market benchmark or peer investment. Alpha describes the excess return generated when compared to peer investment. OnePath Tax Effective Income Trust Wholesale Units has produced Alpha over the Multi-Asset - 61-80% Diversified Index of NA% in the last 12 months and NA% since inception.
What are similar investment products?
For a full list of investment products in the Multi-Asset - 61-80% Diversified Index category, you can click here for the Peer Investment Report.
What level of diversification will OnePath Tax Effective Income Trust Wholesale Units provide?
OnePath Tax Effective Income Trust Wholesale Units has a correlation coefficient of 0.68 and a beta of 1.54 when compared to the Multi-Asset - 61-80% Diversified Index. Correlation measures how similarly two investments move in relation to one another. This establishes a 'correlation coefficient', which has a value between -1.0 and +1.0. A 100% correlation between two investments means that the correlation coefficient is +1. Beta in investments measures how much the price moves relative to the broader market over a period of time. If the investment moves more than the broader market, it has a beta above 1.0. If it moves less than the broader market, then the beta is less than 1.0. Investments with a high beta tend to carry more risk but have the potential to deliver higher returns.
How do I compare the investment product with its peers?
For a full quantitative report on OnePath Tax Effective Income Trust Wholesale Units and its peer investments, you can click here for the Peer Investment Report.
How do I compare the OnePath Tax Effective Income Trust Wholesale Units with the Multi-Asset Growth Investor Index?
For a full quantitative report on OnePath Tax Effective Income Trust Wholesale Units compared to the Multi-Asset Growth Investor Index, you can click here.
Can I sort and compare the OnePath Tax Effective Income Trust Wholesale Units to do my own analysis?
To sort and compare the OnePath Tax Effective Income Trust Wholesale Units financial metrics, please refer to the table above.
Has the OnePath Tax Effective Income Trust Wholesale Units been independently verified by SMSF Mate?
This investment product is in the process of being independently verified by SMSF Mate. Once we have verified the investment product, you will be able to find more information here.
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Comments from SMSF Mates
SMSF Mate does not receive commissions or kickbacks from the OnePath Tax Effective Income Trust Wholesale Units. All data and commentary for this fund is provided free of charge for our readers general information.
Performance Commentary - June 30, 2023 The S&P/ASX 200 Accumulation Index increased 1.76% over the month. Major equity markets were generally strong during the month with S&P 500 returning 6.6% to investors over the month. In local currency terms the MSCI World Index was up 5.57%.
Monetary policy settings continued to tighten as the Reserve Bank of Australia (RBA) in a surprise move in its June meeting raised the cash rate by 25 basis points to 4.1 percent. In the RBA meeting minutes members noted that inflation in many economies remained well above central banks’ targets. Members also noted that growth in economic activity in Australia had slowed since mid-2022, and that inflation had passed its peak but remained well above target and was forecast to return to the top of the target range only by mid-2025. Based on recent data suggesting that inflation risks had shifted to the upside a decision was made to raise the cash rate.
Domestic data releases through June were mixed. The annual rate of inflation at 5.6% in May was below market expectations of 6.1%. Household sector and housing activity are driving the slowdown, while population growth is acting as an offset. Labour market conditions remained strong with the unemployment rate falling to 3.6%. CoreLogic’s national Home Value Index (HVI) rose 1.1% in June, marking the fourth month of recovery since the January trough. A lack of supply was the main factor behind this growth although the pace of growth seems to be slowing as interest rates rise.
The NAB Monthly Business Survey results for May indicated that business conditions continued to ease with notable declines across trading, profitability and employment. Confidence fell to -4 index points in the month with most industries in negative territory. Most concerningly forward orders fell sharply indicating a potentially sharp fall in business conditions.
Estia Health received a revised proposal from Bain capital increasing the bid from $3/share to $3.20/share. There have been several smaller capital raisings including Tamboran Resources, EBR Systems, Macquarie Technology, Bowen Coking Coal and Noble Helium. Infratil was the largest capital raising, launching a NZ$850m capital raising during the month. Key contributors to performance were overweight positions in QBE Insurance, Downer EDI, Rio Tinto and underweight positions in CSL and BHP while a nil holding in Fortescue Metals and Woolworths, overweight holdings in Telstra and Iluka and an underweight holding in CBA detracted from performance.
Performance Commentary - April 30, 2023 The S&P/ASX 200 Accumulation Index was up 1.85% over the month.
Major equity markets were strong in April. In local currency terms the MSCI World Index advanced 1.60%. The US S&P 500 gained 1.46%, while the MSCI Europe Index was up 2.40%. The UK recovered well from a poor performance in the prior month, with the FTSE 100 up 3.10%.
Monetary policy settings remain restrictive, in its April meeting the Reserve Bank of Australia (RBA) decided to leave the cash rate target unchanged at 3.60%. The decision follows a cumulative increase of 3.50% since May last year. The board restated that they are determined to return inflation to the 2-3% range, with inflation currently hovering around 7%, well beyond this target range, further tightening of monetary policy may be necessary.
Domestic data releases through April were mixed. The annual inflation rate in Australia dropped to 7.0% in Q1 of 2023 from an over-30-year high of 7.8% in the previous period, with food prices rising the least in 3 quarters. Australia’s unemployment rate stood at 3.5% in March 2023, unchanged from February’s near 50-year low. Retail sales increased by 0.4% month-over-month (preliminary) in March 2023, while food retailing remained robust, non-food retail sales were weaker. CoreLogic’s national Home Value Index (HVI) increased by 0.5% in April, this follows a 0.6% lift in the prior month, housing values appear to be supported by an imbalance between supply and demand.
The NAB Monthly Business Survey results for March saw business conditions continue to show ongoing resilience, edging lower but remaining well above the long-run average. Trading conditions remain very elevated, indicating that businesses continue to experience strong demand. Business confidence appears to have stabilised but remains below long run averages, with retail and wholesale remaining weak. Encouragingly price and cost growth measures showed some easing in March.
Over the month of April M & A continued with Blackmores agreeing on an all-cash takeover from Kirin valuing the company at about $1.85b. Newmont bumped its non-binding indicative proposal for Newcrest resulting in the former gaining exclusive confirmatory due diligence. Key contributors to performance were a nil position in Fortescue and overweight positions in QBE Insurance, ANZ, Reliance and IGO, while overweight holdings in Rio Tinto, Ramsay, BHP and Skycity as well as a nil position in Transurban detracted from performance.
Performance Commentary - October 31, 2022 The S&P/ASX 200 Accumulation Index was down 6.2% during the month. Australian equities outperformed global equities in September, with the size of our Materials sector a differentiating factor. Global developed markets continued to sell off through September as central banks continued to tighten rates. All major markets finished the month down. In local currency terms the DJ Euro Stoxx 50 returned -5.6%, the US S&P 500 returned -9.2%, the UK’s FTSE 100 returned – 5.2% and Japan’s Nikkei 225 returned -6.9%.
Monetary policy settings continued to tighten as the Reserve Bank of Australia (RBA) raised the cash rate target by another 50 bps, to 2.35% in September. The RBA also flagged further increases in the months ahead, as part of the process of normalising monetary conditions, albeit subject to future economic data. The board remains committed to ensuring inflation returns to the target range of 2- 3%. Domestic economic data releases were mostly positive through September. August employment remained robust, with total employment increasing by 33,500 positions, reversing the unexpected decline seen in July.
While the unemployment rate ticked up 0.1ppts to 3.5%, this was a function of an increase in the participation rate. Job vacancies remain extraordinarily elevated with 474k unfilled roles. Retail sales remained resilient, increasing by 0.6% in August. This is the eighth month of consecutive increases. Within the subcategories, household goods returned to growth while clothing, footwear & personal accessories and other retailing both reported declines.
The NAB Survey of Business Conditions increased further. Notably the survey suggested some slowing of growth in input costs. Capacity utilisation remains high across all sectors, supporting continued strength in employment. Negative data included the Q2 headline CPI, which increased by 1.8%. The yearon-year rate was 6.1%, the equal highest annual rate since 1990. Importantly, the feared wage-price spiral is nowhere to be seen, with growth in wage rates lagging inflation quite materially. The ABS Wage Price Index reported growth of only 2.6% over the year to June. Key contributors to performance were nil holdings in Macquarie Group and Godman Group and and overweight position in 29Metals, while overweight holdings in Ramsay Health Care, Iluka Resources and Orica detracted from performance.
Performance Commentary - September 30, 2022 The S&P/ASX 200 Accumulation Index was down 6.2% during the month. Australian equities outperformed global equities in September, with the size of our Materials sector a differentiating factor. Global developed markets continued to sell off through September as central banks continued to tighten rates. All major markets finished the month down. In local currency terms the DJ Euro Stoxx 50 returned -5.6%, the US S&P 500 returned -9.2%, the UK’s FTSE 100 returned – 5.2% and Japan’s Nikkei 225 returned -6.9%. Monetary policy settings continued to tighten as the Reserve Bank of Australia (RBA) raised the cash rate target by another 50 bps, to 2.35% in September. The RBA also flagged further increases in the months ahead, as part of the process of normalising monetary conditions, albeit subject to future economic data. The board remains committed to ensuring inflation returns to the target range of 2- 3%. Domestic economic data releases were mostly positive through September. August employment remained robust, with total employment increasing by 33,500 positions, reversing the unexpected decline seen in July. While the unemployment rate ticked up 0.1ppts to 3.5%, this was a function of an increase in the participation rate. Job vacancies remain extraordinarily elevated with 474k unfilled roles. Retail sales remained resilient, increasing by 0.6% in August. This is the eighth month of consecutive increases. Within the subcategories, household goods returned to growth while clothing, footwear & personal accessories and other retailing both reported declines. The NAB Survey of Business Conditions increased further. Notably the survey suggested some slowing of growth in input costs. Capacity utilisation remains high across all sectors, supporting continued strength in employment. Negative data included the Q2 headline CPI, which increased by 1.8%. The yearon-year rate was 6.1%, the equal highest annual rate since 1990. Importantly, the feared wage-price spiral is nowhere to be seen, with growth in wage rates lagging inflation quite materially. The ABS Wage Price Index reported growth of only 2.6% over the year to June. Key contributors to performance were nil holdings in Macquarie Group and Godman Group and and overweight position in 29Metals, while overweight holdings in Ramsay Health Care, Iluka Resources and Orica detracted from performance.
Performance Commentary - August 31, 2022 The S&P/ASX 200 Accumulation Index returned 1.2% during the month. Australian equities outperformed global equities in August on the back of a resilient local reporting season. Global developed markets struggled in August as the rate tightening resolve from the US Federal Reserve dampened investor sentiment. In the major developed markets (in local currency terms), the DJ Euro Stoxx 50 returned -5.1%, the US S&P 500 returned -4.1% and the UK’s FTSE 100 returned -1.1%. In contrast, Japan’s Nikkei 225 returned 1.1%. Monetary policy settings continued to tighten as the Reserve Bank of Australia (RBA) raised the cash rate target by another 50 bps, to 1.85% in August. The RBA expects further tightening in the process of normalising monetary conditions as they are committed to ensuring that inflation returns to the target range of 2-3%. Domestic economic data releases in August were mixed. Employment unexpectedly fell by 40,900 positions in July, the first fall in nine months.
The unemployment rate fell to a new record low of 3.4%, which was also below market expectations. The NAB Survey of Business Conditions strengthened by 6 points to 20 index points in July. Business confidence rebounded 5 points in July, to 7 index points. Retail sales were up 0.2% in June. CoreLogic’s National Home Value Index recorded a fourth consecutive month of value declines, down 1.6% in August. Sector returns were mixed in August. The best performing sectors were energy (7.8%), materials (4.4%) and communication services (2.5%). Industrials (1.2%) also outperformed the broader index. Consumer discretionary (0.9%), health care (0.4%), information technology (-0.1%), financials (-0.6%), utilities (-1.6%) and consumer staples (-1.8%) all underperformed the broader index. Real estate (-3.5%) was the worst performing sector. Key contributors to performance included overweight positions in Santos, 29Metals and IGO Limited. Key detractors from performance included the overweight positions in Coles, Downer EDI and Orica.
Performance Commentary - June 30, 2022 The S&P/ASX 200 Accumulation Index returned -8.8% during the month. Australian equities underperformed global equities which returned -4.9% as measured by the MSCI All Countries World Index (in AUD, unhedged). Global equities were weaker in June, as investors worry over rising inflation levels and the chance of an economic recession. In the major developed markets, the US S&P 500 returned -8.3%, Japan’s Nikkei 225 returned -3.1%, UK’s FTSE 100 returned -5.5% and the DJ Euro Stoxx 50 returned – 8.7% (in local currency terms). Monetary policy settings tightened during the month as the Reserve Bank of Australia (RBA) surprised the market in its June meeting raising the cash rate target by 50 bps, to 0.85%. Domestic economic data releases in June were mostly weaker, employment being the exception. The unemployment rate was unchanged at 3.9%, remaining at its lowest on record for the third straight month. The NAB Survey of Business Conditions fell 2 points to 16 index points in May, remaining well above average. Business confidence fell 4 points in May to 6 index points, remaining just above its long-term average. Retail sales were up 0.9% in May. Apart from consumer staples, all sectors were down in June. The best performing sectors were consumer staples (0.2%), energy (- 0.3%) and health care (-3.1%). Communication services (-3.6%), industrials (-4.3%), utilities (-6.8%) and consumer discretionary (-7.3%) also outperformed the broader index. Real estate (- 10.3%), information technology (-11.0%) and financials (-11.9%) all underperformed the broader index. Materials (-12.4%) was the worst performing sector. The Fund outperformed the benchmark during June (net). Key contributors to performance included overweight holdings in Woodside, Coles and SkyCity Entertainment. Key detractors from performance included the overweight position in 29Metals, underweight allocation to CSL and the nil holding in Woolworths Group.
Performance Commentary - February 28, 2022 The S&P/ASX 200 Accumulation Index was down 3.2% during the month. Australian equities were amongst the better performers in the month. All major developed markets declined as realisation that the Fed remains on a tightening path saw prior months gains unwind. In local currency terms the DJ Euro Stoxx 50 returned -4.3%, the US S&P 500 returned -5.6%, the UK’s FTSE 100 returned – 1.5% and Japan’s Nikkei 225 returned -6.6%.
Monetary policy settings continued to tighten as the Reserve Bank of Australia (RBA) maintained the pace of increases in line with the prior two months, raising the cash rate target by another 25 bps, to 3.10% in December, matching market forecasts and taking borrowing costs to a level not seen since November 2012. The RBA expects that interest rates will need to increase further in the months ahead to return inflation to within the target range of 2-3%. Future increases, however, do remain subject to the RBA’s assessment of the outlook for inflation and the labour market. Domestic data releases through December continue to point to robust activity levels, albeit with softening in some sectors.
The ABS Business Turnover Data indicated 4 of 13 sectors saw a decline in turnover in October, including retail trade which saw its first drop in nine months, as cost pressures and rising interest rates started to weigh in on consumer spending. The unemployment rate in Australia stood at 3.4% in November 2022, unchanged from October’s 3-month low, and matching market estimates. CoreLogic’s National Home Value Index was down 1.1% in December, taking values -5.3% lower over 2022, the largest calendar year decline since 2008, where values were down 6.4% amid the Global Financial Crisis.
The NAB Monthly Business Survey results for November saw business conditions remain strong, while business confidence has turned negative reflecting a more uncertain outlook. The report also highlighted that inflationary pressures remain, with labour costs rising at a quarterly rate of 3.0% and purchases costs up 3.9%. By comparison, final product prices increased by 2.0%, suggesting margin pressure for business. All sectors of the market finished down over the month.
The best performing sectors were materials (-0.9%), utilities (-1.2%) and consumer staples (-1.8%). The worst performing sectors were consumer discretionary (-7.0%), information technology (-5.4%) and industrials (-4.9). Key contributors to performance were overweight positions in QBE Insurance, Rio Tinto and G8 Education, while overweight positions in Downer EDI, 29Metals and SkyCity Entertainment detracted from performance.
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