OneAnswer KiwiSaver Scheme Australasian Property Fund

Fund report as at 30 June 2019
 

How has the fund performed?

Performance as at 30 June 2019

3 months

1 year

3 years (pa)

5 years (pa)

Since launch

10.41%

25.33%

11.66%

13.93%

8.46%

Performance is after the annual fund charge, and before tax and membership fees (if applicable). For more information, see legal information and disclaimers.

What happened this quarter (3 months to 30 June 2019)

  • Positive factors influencing performance were underweight positions in Argosy Property and CDL Investments. Argosy’s May result included increased capital expenditure, including in seismic strengthening of NZ Post House in Wellington, and no dividend growth in FY20. CDL’s Chairman commented at its annual meeting in May that, in response to a slowing housing market, adjustments are being made to the business.
  • Negative factors influencing performance were overweight positions in Metlifecare and Aveo Group. Metlifecare made no material announcements over the quarter. However, both Ryman and Arvida announced results in May that pointed toward the housing market becoming more challenging. Larger cap operators, Ryman and Summerset, also fell over the quarter.
  • Our position in Metlifecare is supported by the large discount to its net asset backing. Aveo gave a trading update in June, reporting in FY19 underlying profit of A$50 million, up to 30% below market expectations. We continue to believe Aveo is likely to be acquired, with Brookfields named the preferred party.

Need more information?

  • Read our Market Review for more information on investment markets
  • Key read: why it’s wise not to try to time the market or chase returns

What does the fund invest in?

The fund invests mainly in New Zealand and Australian listed property assets. Investments may include:

• companies, funds or trusts that invest in property and are listed or intend to list, and
• cash and cash equivalents.

This chart shows the mix of assets that the fund generally intends to invest in.

See the fund's actual investment mix on page 3 of the Fund update.