OneAnswer KiwiSaver Scheme International 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

0.11%

8.89%

4.27%

7.22%

4.17%

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)

  • Overall, international property had a mixed second quarter, with the US market rising almost 2%, while European markets finished down 1.3%. The best-performing regions were Singapore (up 10% for the quarter) and Japan (up 6% for the quarter) in New Zealand dollar terms.
  • The poorest-performing region was the UK, down 2.2% in New Zealand dollar terms.
  • Residential was the weakest-performing sector, as the threat of restrictive rent regulation in Berlin and potentially other German markets impacted returns for German residential landlords. Industrial was the best-performing sector, benefiting from continued strength in both tenant and investor demand.
  • Experiential real estate owner VICI Properties led the way in an especially busy June for Real Estate Investment Trust (REIT) equity raisings. VICI, which owns casinos, racetracks, hotels and golf courses, raised US$2.15 billion in public equity offerings to help fund the acquisition of several resorts and casinos in Atlantic City, Nevada and New Orleans.
  • Healthcare REIT, Ventas raised US$794 million off the back of the acquisition of an 85% stake in a Canadian senior housing portfolio while Alexandria Real Estate Properties raised US$640 million in anticipation of expected acquisitions.
  • Canadian Office REIT, Allied Properties, raised $345 million (US$261million) to help fund two Montreal acquisitions while Japanese logistics landlord, Nippon Prologis raised ¥36 billion (US$331 million) to repay bridge loans used to acquire four Class-A logistics properties, continuing an ecommerce-fuelled trend towards logistics assets and away from bricks and mortar retail.

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 international 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.