OneAnswer KiwiSaver Scheme International Share 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

5.83%

18.48%

12.28%

14.49%

7.43%

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)

  • The world’s developed share markets moved sharply higher, with the MSCI All Country World Index up 4.2% in local currency terms. This was down to a solid reporting season, particularly in the US. Technology companies were particularly strong performers as first Apple, then Amazon, broke through the $1 trillion level in terms of market size.
  • It was a challenging period for the fund, with only one of the four underlying managers outperforming the market. That said, the fund has returned a strong absolute return for the quarter, and over one year is up 18.48%.
  • Core manager, MFS, was the best-performing manager. A number of its long-term holdings in the healthcare sector (to which it is typically overweight) were of benefit – healthcare being the best-performing sector over the quarter. Thermos Fisher Scientific, Medtronic and Zimmer Biomet Holdings all delivered gains of around 20%.
  • Growth manager, Franklin, was the weakest manager. While its overweight to the industrial sector was of benefit, a number of its long-term holdings gave back some of their recent gains. This included Sophos Group, a software security company in the UK, and TAL Education Group, a Chinese company involved in after-school tutoring programmes.
  • It was a similar story within the fund’s other core manager, Vontobel, where some previously strong-performing positions gave back some gains during the quarter. This included HDFC Bank, India’s largest listed bank.

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%

International Equities

100.0%

99.9%

 

What sort of fund is this?

Fund description

Invests mainly in international equities. Investments may include:

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

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.