OneAnswer KiwiSaver Scheme International Property Fund

Fund report as at 30 September 2018

 

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How has the fund performed?

What does the fund invest in?

What sort of fund is this?

How has the fund performed?

Performance as at 30 September 2018

3 months

1 year

3 years (pa)

5 years (pa)

Since launch

0.70%

4.96%

5.40%

8.89%

3.73%

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 September 2018)

  • Global listed property markets delivered only modest returns this quarter. The US listed property market was a weak performer, as the US Federal Reserve raised interest rates for the third time this year. UK and European markets were also weak, thanks to Brexit uncertainties, although Asian markets were strong – thanks largely to the stronger returns of the Hong Kong and Singaporean markets earlier in the quarter.
  • Dexus Property Group, an Australian property company focusing on office and industrial property, and the fund’s largest overweight, was one of the better-performing holdings this quarter. Its share price rallied following the release of its 2018 financial year earnings.
  • Holdings in Simon Property Group, the largest retail real estate operator in the US, and Equity Residential, which specialises in residential apartments also in the US, were both positive contributors to returns. Regional malls and apartments were among the better-performing sectors in the US market this quarter.
  • A couple of weaker performers included Kilroy Realty Corporation, which develops, owns and operates office and industrial spaces in California, and Assura, a UK healthcare landlord. Assura’s share price continued its downwards trend, as UK real estate stocks have generally underperformed given Brexit concerns.

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?

In the table below, the ‘target investment mix’ shows the mix of assets the fund generally intends to invest in.

Investment mix as at 30 September 2018

Asset class

Target
investment mix

Actual
investment mix

Cash and cash equivalents

0.0%

0.1%

Listed Property

100.0%

99.9%

 

What sort of fund is this?

Fund description

Invests mainly in international listed property assets. Investments may include:

  • listed companies, funds or trusts that invest in property, and
  • cash and cash equivalemts

Target investment mix

The mix of assets that the fund generally intends to invest in.

See the fund's actual investment mix in the table above.

Fund objective

Aims to achieve a positive yearly return (after the fund charge and before tax) that over the long term outperforms the relevant market index.