OneAnswer KiwiSaver Scheme International 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

-13.92%

-4.37%

7.36%

9.25%

5.84%

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)

  • It was a tough period for the fund, as international shares fell sharply over the quarter. Geopolitical tensions, higher US interest rates, global trade disputes and expectations of a slowdown in company earnings kept investors on edge. Against this backdrop, the MSCI All Country World Index fell by 12.8% in local currency terms. Technology and energy-related stocks were particularly weak performers.
  • All four of the fund’s underlying managers delivered negative returns, with two of them underperforming and two of them outperforming.
  • Core manager, Vontobel, was the better performer. Strong selection within the fund’s financials holdings was beneficial, with its long-standing position in HDFC Bank (India’s largest listed bank) up 8%. Another strong performer within this sector was CME Group, an owner and operator of options and futures exchanges around the world.
  • The fund’s other core manager, MFS, and value manager, LSV, delivered returns that were broadly in line with the market. MFS benefited from some good company selection within the information technology sector, while its holdings in the healthcare sector – via positions in Roche, Medtronic and Abbott Industries  – also helped.
  • Unsurprisingly, growth manager Franklin was the weakest performer, given that growth companies tend to be the first to be sold down in a broad share market sell-off. Poor-performing holdings within the healthcare and energy sectors held back returns.

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 equities. Investments may include:

  • equities in companies that are listed on a recognised stock exchange, 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.