OnePath WS-Diversified Fixed Interest aims to provide income and achieve returns (before fees, charges and taxes) that exceed the Bloomberg AusBond Composite 0+ Yr Index, over periods of three years or more. The fund is actively managed and invests predominantly in a diversified mix of Australian and international defensive assets.
Rising Sovereign bond yields weighed on bond returns over the quarter as stickier core inflation, resilient labour markets and wages pressure kept central banks on high alert. Overall the trust outperformed over the quarter. There were no manager changes over the quarter.
Global fixed income yields rose in many countries, including the US. U.S. 10-year Treasury yields approached 15-year highs above 4% after U.S. jobs data showed a still tight labor market. The unemployment rate fell lower, labor participation hasn’t risen further, and wages are still growing even after the Fed’s rapid rate hikes. The markets are at an inflection point in which central banks will be forced to keep monetary policy tight to limit inflationary pressures.
What is OnePath WS-Diversified Fixed Interest OnePath WS-Diversified Fixed Interest is an Managed Funds investment product that is benchmarked against Global Aggregate Hdg Index and sits inside the Fixed Income - Bonds - Global / Australia 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 WS-Diversified Fixed Interest has Assets Under Management of 153.79 M with a management fee of 0.5%, a performance fee of 0.00% and a buy/sell spread fee of 0.27%.
How has the investment product performed recently?
The recent investment performance of the investment product shows that the OnePath WS-Diversified Fixed Interest has returned 0.75% in the last month. The previous three years have returned -0.53% annualised and 3.29% each year since inception, which is when the OnePath WS-Diversified Fixed Interest 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 WS-Diversified Fixed Interest first started, the Sharpe ratio is NA with an annualised volatility of 3.29%. The maximum drawdown of the investment product in the last 12 months is -1.69% and -13.31% 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 WS-Diversified Fixed Interest has a 12-month excess return when compared to the Fixed Income - Bonds - Global / Australia Index of 0.45% and -0.14% 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 WS-Diversified Fixed Interest has produced Alpha over the Fixed Income - Bonds - Global / Australia 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 Fixed Income - Bonds - Global / Australia Index category, you can click here for the Peer Investment Report.
What level of diversification will OnePath WS-Diversified Fixed Interest provide?
OnePath WS-Diversified Fixed Interest has a correlation coefficient of 0.93 and a beta of 1.05 when compared to the Fixed Income - Bonds - Global / Australia 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 WS-Diversified Fixed Interest and its peer investments, you can click here for the Peer Investment Report.
How do I compare the OnePath WS-Diversified Fixed Interest with the Global Aggregate Hdg Index?
For a full quantitative report on OnePath WS-Diversified Fixed Interest compared to the Global Aggregate Hdg Index, you can click here.
Can I sort and compare the OnePath WS-Diversified Fixed Interest to do my own analysis?
To sort and compare the OnePath WS-Diversified Fixed Interest financial metrics, please refer to the table above.
Has the OnePath WS-Diversified Fixed Interest 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.
How can I invest in OnePath WS-Diversified Fixed Interest?
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Comments from SMSF Mates
SMSF Mate does not receive commissions or kickbacks from the OnePath WS-Diversified Fixed Interest. All data and commentary for this fund is provided free of charge for our readers general information.
Performance Commentary - June 30, 2023 Rising Sovereign bond yields weighed on bond returns over the quarter as stickier core inflation, resilient labour markets and wages pressure kept central banks on high alert. Overall the trust outperformed over the quarter. There were no manager changes over the quarter.
Global fixed income yields rose in many countries, including the US. U.S. 10-year Treasury yields approached 15-year highs above 4% after U.S. jobs data showed a still tight labor market. The unemployment rate fell lower, labor participation hasn’t risen further, and wages are still growing even after the Fed’s rapid rate hikes. The markets are at an inflection point in which central banks will be forced to keep monetary policy tight to limit inflationary pressures.
Performance Commentary - April 30, 2023 The collapse of Silicon Valley Bank in mid-March dwarfed concerns over re-accelerating inflation and prompted a sharp rally in government bonds.
Overall the trust underperformed over the quarter. The main detractors were PGIM and Bentham which underperformed the benchmark over the quarter. Janus Henderson and Western Asset Management contributed positively to performance, performing well above the return of the benchmark. Brandywine also contributed favourably to performance.
Over the year the fund was a strong performer as its diversified portfolio construction, which targets exposure to select fixed income building blocks, added value. Manager alpha has also been positive as the focus on high quality managers has benefited the fund.
Performance Commentary - December 31, 2022 TBentham was a big contributor performing well above the return of the benchmark. Stone Harbour, PGIM and Brandywine also contributed favourably to performance. The quarter saw Central Banks reinforce their resolve to take cash rates higher to fight stubbornly elevated inflation. Australian 10 year bonds ended the quarter 0.15% higher, to close at 4.05%, and the US 10 year bond rose 0.04% to close the quarter at 3.88%.
The fund is maintaining a defensive position to both interest rates and credit. Whilst the fund overall is short duration, the fund has been taking the opportunity to reduce the short as yields have sold off. The fund has also been re-allocating away from short duration benchmark managers to long duration benchmark managers. The fund is also shifting to a more defensive stance on credit. Whilst the fundamentals and technicals for credit are strong, we feel with the economic outlook being uncertain, it is prudent to be more conservative on credit
Performance Commentary - October 31, 2022 The quarter saw Central Banks reinforce their resolve to take cash rates higher to fight stubbornly elevated inflation. Australian 10 year bonds ended the quarter 0.23% higher, to close at 3.89%, and the US 10 year bond rose 0.82% to close the quarter at 3.83%. The fund is maintaining a defensive position to both interest raters and credit. Whilst the fund overall is short duration, the fund has been taking the opportunity to reduce the short as yields have sold off. The fund has also been re-allocating away from short duration benchmark managers to long duration benchmark managers. The fund is also shifting to a more defensive stance on credit. Whilst the fundamentals and technicals for credit are strong, we feel with the economic outlook being uncertain, it is prudent to be more conservative on credit.
Performance Commentary - September 30, 2022 The quarter saw Central Banks reinforce their resolve to take cash rates higher to fight stubbornly elevated inflation. Australian 10 year bonds ended the quarter 0.23% higher, to close at 3.89%, and the US 10 year bond rose 0.82% to close the quarter at 3.83%.
Performance Commentary - August 31, 2022 The quarter saw rising interest rates and widening credit spreads as Central Banks aggressively dealt with higher than expected inflation. There were no manager changes over the quarter. The fund underperformed its benchmark by 0.19% for the quarter. The Ardea Diversified Bond Fund was a big contributor due to its focus on high quality alpha sources and its benchmark replication strategy. The Ardea Global Alpha Fund was also a positive contributor to performance as market volatility picked up. Janus Henderson subtracted value due to duration positioning and credit sector positioning. The IOOF Income Trust subtracted value due to credit sector selection. Western Asset Management subtracted value in its global total return strategy due to credit positioning.
Performance Commentary - June 30, 2021 The Fund underperformed its benchmark in the June quarter. The fund is positioned for the reflation trade and as such is underweight duration. Towards the end of the quarter we saw yields rally quite agressively and curves bull flatten as the efficacy of COVID vaccines to the Delta strain was questioned by markets.
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