OneAnswer KiwiSaver Scheme International 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

-6.16%

-5.85%

1.38%

7.25%

3.06%

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 most local international listed property markets fell in value, they generally outperformed their broader share market indices over the quarter. Property tends to do better than the broader share market in times of volatility, thanks to its defensive characteristics.
  • There were mixed performances from the various regions. Asian property markets proved the most resilient, with the Hong Kong and Singaporean markets delivering only modest declines. Elsewhere, the UK and European markets were the worst performers on the back of ongoing Brexit uncertainties. The US market was also a weak performer this quarter.
  • Among the better-performing holdings was HCP, which invests in US healthcare real estate. Its shares jumped by over 7%, as the healthcare sector proved to be one of the better performers over the quarter. Also in the US, holdings in Equity Residential, which specialises in residential apartments, and Equity LifeStyle Properties, which owns and operates a number of lifestyle-oriented properties, were also good performers.
  • The largest detractor from returns was the fund’s holding in Gecina, a French residential and office-focused real estate investment trust. It struggled against the backdrop of Brexit concerns, and as French companies were disrupted by nationwide riots on the back of proposed tax increases.

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:

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

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.