OptiMix Global Emerging Markets Share aims to achieve returns (before fees, charges and taxes) that exceed the MSCI Emerging Markets (Free) Index ($A unhedged), over periods of five years or more. The fund invests predominantly in a diversified portfolio of shares in global emerging markets through a mix of managers. The fund is actively managed in accordance with the OptiMix Multi-manager investment process.
Global emerging markets rose strongly over the quarter, outperforming the MSCI AC World index. A rebound in risk appetite towards Chinese equities was a key driver, despite weaker economic data releases.
India underperformed as persistent food price rises kept headline inflation elevated. Taiwan was behind the index as continued strength in AI theme stocks was offset by weakness elsewhere.
What is OnePath OA FR IP-Optimix Gbl Emg Mkt Shr OnePath OA FR IP-Optimix Gbl Emg Mkt Shr is an Managed Funds investment product that is benchmarked against World Emerging Markets Index and sits inside the Foreign Equity - Emerging Markets 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 OA FR IP-Optimix Gbl Emg Mkt Shr has Assets Under Management of 2.30 M with a management fee of 1.5%, a performance fee of 0.00% and a buy/sell spread fee of 0.38%.
How has the investment product performed recently?
The recent investment performance of the investment product shows that the OnePath OA FR IP-Optimix Gbl Emg Mkt Shr has returned 2.98% in the last month. The previous three years have returned -1.82% annualised and 10.59% each year since inception, which is when the OnePath OA FR IP-Optimix Gbl Emg Mkt Shr 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 OA FR IP-Optimix Gbl Emg Mkt Shr first started, the Sharpe ratio is NA with an annualised volatility of 10.59%. The maximum drawdown of the investment product in the last 12 months is -2.81% and -32.38% 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 OA FR IP-Optimix Gbl Emg Mkt Shr has a 12-month excess return when compared to the Foreign Equity - Emerging Markets Index of 3.67% and -2.48% 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 OA FR IP-Optimix Gbl Emg Mkt Shr has produced Alpha over the Foreign Equity - Emerging Markets 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 Foreign Equity - Emerging Markets Index category, you can click here for the Peer Investment Report.
What level of diversification will OnePath OA FR IP-Optimix Gbl Emg Mkt Shr provide?
OnePath OA FR IP-Optimix Gbl Emg Mkt Shr has a correlation coefficient of 0.97 and a beta of 1 when compared to the Foreign Equity - Emerging Markets 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 OA FR IP-Optimix Gbl Emg Mkt Shr and its peer investments, you can click here for the Peer Investment Report.
How do I compare the OnePath OA FR IP-Optimix Gbl Emg Mkt Shr with the World Emerging Markets Index?
For a full quantitative report on OnePath OA FR IP-Optimix Gbl Emg Mkt Shr compared to the World Emerging Markets Index, you can click here.
Can I sort and compare the OnePath OA FR IP-Optimix Gbl Emg Mkt Shr to do my own analysis?
To sort and compare the OnePath OA FR IP-Optimix Gbl Emg Mkt Shr financial metrics, please refer to the table above.
Has the OnePath OA FR IP-Optimix Gbl Emg Mkt Shr 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 OA FR IP-Optimix Gbl Emg Mkt Shr?
How do I get in contact with the OnePath OA FR IP-Optimix Gbl Emg Mkt Shr?
Comments from SMSF Mates
SMSF Mate does not receive commissions or kickbacks from the OnePath OA FR IP-Optimix Gbl Emg Mkt Shr. All data and commentary for this fund is provided free of charge for our readers general information.
Performance Commentary - June 30, 2023 Global emerging markets rose strongly over the quarter, outperforming the MSCI AC World index. A rebound in risk appetite towards Chinese equities was a key driver, despite weaker economic data releases.
India underperformed as persistent food price rises kept headline inflation elevated. Taiwan was behind the index as continued strength in AI theme stocks was offset by weakness elsewhere.
Performance Commentary - April 30, 2023 Global emerging equity markets posted positive gains for the quarter, but lagged developed markets. The Fund underperformed the benchmark over the quarter by -0.8% with Intrinsic being the largest detractor. Market volatility continued in the first quarter of 2023, with the collapse of Silicon Valley Bank in the United States being one of the most significant events. This provides a stark reminder to investors that events impacting the global economy and financial markets are becoming increasingly difficult to predict. The result will and has been increased volatility and diverging company performance. At such times, the merits of business models that can outperform against difficult backdrops are often underappreciated. Given the volatility within global emerging equity markets the benchmark returned negative 4.01% for the past year. This was predominantly driven by underperforming China (regulations). The Fund underperformed for the year. This was led by, William Blair (less cyclical exposure) Intrinsic (smaller cap orientation) and TT International (China exposure).
Performance Commentary - February 28, 2023 Global emerging equity markets faced volatility during the quarter with a sharp rally from mid November on the back of some policy changes, particularly to their existing ‘zero Covid’ restrictions. The Fund underperformed the benchmark over the quarter by 1.9% with William Blair, Intrinsic and TT Intl all detracting from performance. Neuberger performed slightly above benchmark.
Market volatility continued in the fourth quarter of 2022 as investors weighed the impact of inflation and the risk of recession in the world’s major economies against hopes that the efforts by central banks to control inflation may be starting to succeed. This provides a stark reminder to investors that events impacting the global economy and financial markets are becoming increasingly difficult to predict. The result will and has been increased volatility and diverging company performance.
At such times, the merits of business models that can outperform against difficult backdrops are often underappreciated. Given the volatility within global emerging equity markets the benchmark returned negative 14.33% for the past year. This was predominantly driven by underperforming China (regulations), as well as the Russian invasion of the Ukraine in February 2022. The Fund underperformed for the year. This was led by Intrinsic (smaller cap orientation), William Blair (less cyclical exposure) and TT international (China exposure).
Performance Commentary - December 31, 2022 Global emerging equity markets faced volatility during the quarter with a sharp rally from mid November on the back of some policy changes, particularly to their existing ‘zero Covid’ restrictions.
The Fund underperformed the benchmark over the quarter by 1.9% with William Blair, Intrinsic and TT Intl all detracting from performance. Neuberger performed slightly above benchmark. Market volatility continued in the fourth quarter of 2022 as investors weighed the impact of inflation and the risk of recession in the world’s major economies against hopes that the efforts by central banks to control inflation may be starting to succeed. This provides a stark reminder to investors that events impacting the global economy and financial markets are becoming increasingly difficult to predict.
The result will and has been increased volatility and diverging company performance. At such times, the merits of business models that can outperform against difficult backdrops are often underappreciated. Given the volatility within global emerging equity markets the benchmark returned negative 14.33% for the past year. This was predominantly driven by underperforming China (regulations), as well as the Russian invasion of the Ukraine in February 2022. The Fund underperformed for the year. This was led by Intrinsic (smaller cap orientation), William Blair (less cyclical exposure) and TT international (China exposure).
Performance Commentary - October 31, 2022 Global emerging equity markets faced volatility during the quarter. The Fund outperformed the benchmark over the quarter by 1.7%due to a bias towards quality growth managers William Blair and All Spring (Intrinsic). Market volatility continued in the third quarter of 2022 as investors are focused on the impact of the war on commodity and energy prices, and ultimately higher inflation and rising interest rates. All these issues are stark reminders to investors that events impacting the global economy and financial markets are becoming increasingly difficult to predict. The result will and has been increased volatility and diverging company performance. At such times, the merits of business models that can outperform against difficult backdrops are often underappreciated. Given the volatility of the third quarter, global emerging equity markets returned negative 19.2% for the past year. This was predominantly driven by underperforming China (regulations), as well as the Russian invasion of the Ukraine in February 2022. The Fund underperformed for the year. This was led by managers TT international (China exposure), William Blair (less cyclical exposure) and All Spring (smaller cap orientation).
Performance Commentary - October 31, 2022 Global emerging equity markets faced volatility during the quarter. The Fund outperformed the benchmark over the quarter by 1.7%due to a bias towards quality growth managers William Blair and All Spring (Intrinsic). Market volatility continued in the third quarter of 2022 as investors are focused on the impact of the war on commodity and energy prices, and ultimately higher inflation and rising interest rates. All these issues are stark reminders to investors that events impacting the global economy and financial markets are becoming increasingly difficult to predict. The result will and has been increased volatility and diverging company performance. At such times, the merits of business models that can outperform against difficult backdrops are often underappreciated. Given the volatility of the third quarter, global emerging equity markets returned negative 19.2% for the past year. This was predominantly driven by underperforming China (regulations), as well as the Russian invasion of the Ukraine in February 2022.
The Fund underperformed for the year. This was led by managers TT international (China exposure), William Blair (less cyclical exposure) and All Spring (smaller cap orientation). The exposure to high quality companies with sustainable growth in emerging markets should bode well for the medium to longer term. It is anticipated these stocks will continue to perform during both a highly volatile period driven by COVID related issues, as well through to the longer term.
Performance Commentary - August 31, 2022 Global emerging equity markets faced volatility during the quarter. The Fund underperformed the benchmark over the quarter due to a bias towards the underperforming China and Brazillian equities. This was predominantly driven by underlying managers, TT International and Berkeley Street.
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