OneAnswer KiwiSaver Scheme Australasian Share 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

-7.67%

3.59%

10.77%

12.48%

7.40%

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)

  • While New Zealand shares fell, they were somewhat resilient compared to their international counterparts thanks to the more defensive nature of our local share market. The NZX 50 Index was down 5.8%. Across the Tasman, Australian shares fell on global trade tensions, declining energy prices and a slowdown in China. The ASX 200 Index fell 9.0%.
  • The fund has a modest weighting to Australia and this held back the returns of the fund during the quarter, as Australian shares underperformed New Zealand shares.
  • The fund has held long-standing positions in retirement businesses Ryman Healthcare and Metlifecare. These were a drag on fund performance, as they fell 22% and 17% respectively. Their share prices have been affected by a turn in housing market sentiment, due in part to the foreign buyer ban and talk of a capital gains tax. This was partially offset by an underweight in Summerset Group, whose shares also fell.
  • The fund’s underweight position in Trade Me was another key detractor from performance, as its shares jumped by over 20% on the back of a takeover bid from an overseas company.
  • However, there were some positive contributions to returns. The fund held a 1.5% weighting in cash and this was beneficial against the backdrop of sharply declining share markets.
  • The fund also held overweight positions in electricity retailers Genesis Energy, Meridian Energy and Contact Energy. These all did well, benefiting from this sector’s more defensive properties during what was a volatile market environment.

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 equities. Investments may include:

  • equities in companies that are listed or intend to list on the New Zealand or Australian stock exchanges, 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.