OneAnswer KiwiSaver Scheme Australasian Property Fund

Fund report as at 31 December 2018
 

How has the fund performed?

Performance as at 31 December 2018

3 months

1 year

3 years (pa)

5 years (pa)

Since launch

0.20%

7.78%

8.20%

12.32%

7.20%

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 31 December 2018)

  • The New Zealand listed property sector gained 2.3% over the quarter, comfortably outperforming the broader New Zealand share market. The Australian property sector did not fare as well, falling 1.9%, but still outperformed the broader Australian share market. Listed property sectors demonstrated their resilience in the face of ongoing share market volatility.
  • The fund’s long-standing overweight positions in retirement businesses Ryman Healthcare and Metlifecare were a drag on performance, as they fell 22% and 17% respectively. They have both been affected by a turn in New Zealand housing market sentiment, due in part to the foreign buyer ban and talk of a capital gains tax.
  • In a similar theme, Aveo Group, an Australian retirement village owner and operator, saw its share price fall sharply. Property companies with ties to the Australian residential sector have been hard hit by the sharp downturn in the country’s housing market.
  • The fund’s underweight in Argosy Property also hurt, as it was the standout performer this quarter. Its shares rose following a good first-half result that included an interim revaluation.
  • However, there were some positives. The fund is underweight Goodman Property Trust, on valuation grounds, and CDL Investments, as we do not like the structure of the company (it has a majority shareholder). This was beneficial as both companies underperformed.
  • Meanwhile, the fund’s overweight in Precinct Properties did well, given good progress on existing developments that are underway and news of some exciting new projects.

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:

  • listed companies, funds or trusts that invest in property, 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.