July, 2023
Rising Sovereign bond yields weighed on bond returns over the quarter as stickier core inflation, resilient labour markets and wages pressure kept central banks on high alert. Overall the trust outperformed over the quarter. There were no manager changes over the quarter.
Global fixed income yields rose in many countries, including the US. U.S. 10-year Treasury yields approached 15-year highs above 4% after U.S. jobs data showed a still tight labor market. The unemployment rate fell lower, labor participation hasn’t risen further, and wages are still growing even after the Fed’s rapid rate hikes. The markets are at an inflection point in which central banks will be forced to keep monetary policy tight to limit inflationary pressures.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/fs_WST_ANZ0212AU-3.pdfJune, 2023
Rising Sovereign bond yields weighed on bond returns over the quarter as stickier core inflation, resilient labour markets and wages pressure kept central banks on high alert. Overall the trust outperformed over the quarter. There were no manager changes over the quarter.
Global fixed income yields rose in many countries, including the US. U.S. 10-year Treasury yields approached 15-year highs above 4% after U.S. jobs data showed a still tight labor market. The unemployment rate fell lower, labor participation hasn’t risen further, and wages are still growing even after the Fed’s rapid rate hikes. The markets are at an inflection point in which central banks will be forced to keep monetary policy tight to limit inflationary pressures.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/fs_WST_ANZ0212AU-2.pdfApril, 2023
The collapse of Silicon Valley Bank in mid-March dwarfed concerns over re-accelerating inflation and prompted a sharp rally in government bonds.
Overall the trust underperformed over the quarter. The main detractors were PGIM and Bentham which underperformed the benchmark over the quarter. Janus Henderson and Western Asset Management contributed positively to performance, performing well above the return of the benchmark. Brandywine also contributed favourably to performance.
Over the year the fund was a strong performer as its diversified portfolio construction, which targets exposure to select fixed income building blocks, added value. Manager alpha has also been positive as the focus on high quality managers has benefited the fund.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/fs_WST_ANZ0212AU-1.pdfDecember, 2022
TBentham was a big contributor performing well above the return of the benchmark. Stone Harbour, PGIM and Brandywine also contributed favourably to performance. The quarter saw Central Banks reinforce their resolve to take cash rates higher to fight stubbornly elevated inflation. Australian 10 year bonds ended the quarter 0.15% higher, to close at 4.05%, and the US 10 year bond rose 0.04% to close the quarter at 3.88%.
The fund is maintaining a defensive position to both interest rates and credit. Whilst the fund overall is short duration, the fund has been taking the opportunity to reduce the short as yields have sold off. The fund has also been re-allocating away from short duration benchmark managers to long duration benchmark managers. The fund is also shifting to a more defensive stance on credit. Whilst the fundamentals and technicals for credit are strong, we feel with the economic outlook being uncertain, it is prudent to be more conservative on credit
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/fs_WST_ANZ0212AU.pdfOctober, 2022
The quarter saw Central Banks reinforce their resolve to take cash rates higher to fight stubbornly elevated inflation. Australian 10 year bonds ended the quarter 0.23% higher, to close at 3.89%, and the US 10 year bond rose 0.82% to close the quarter at 3.83%. The fund is maintaining a defensive position to both interest raters and credit. Whilst the fund overall is short duration, the fund has been taking the opportunity to reduce the short as yields have sold off. The fund has also been re-allocating away from short duration benchmark managers to long duration benchmark managers. The fund is also shifting to a more defensive stance on credit. Whilst the fundamentals and technicals for credit are strong, we feel with the economic outlook being uncertain, it is prudent to be more conservative on credit.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/194068541.pdfSeptember, 2022
The quarter saw Central Banks reinforce their resolve to take cash rates higher to fight stubbornly elevated inflation. Australian 10 year bonds ended the quarter 0.23% higher, to close at 3.89%, and the US 10 year bond rose 0.82% to close the quarter at 3.83%.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/192854845.pdfAugust, 2022
The quarter saw rising interest rates and widening credit spreads as Central Banks aggressively dealt with higher than expected inflation. There were no manager changes over the quarter. The fund underperformed its benchmark by 0.19% for the quarter. The Ardea Diversified Bond Fund was a big contributor due to its focus on high quality alpha sources and its benchmark replication strategy. The Ardea Global Alpha Fund was also a positive contributor to performance as market volatility picked up. Janus Henderson subtracted value due to duration positioning and credit sector positioning. The IOOF Income Trust subtracted value due to credit sector selection. Western Asset Management subtracted value in its global total return strategy due to credit positioning.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/192180082.pdfJune, 2021
The Fund underperformed its benchmark in the June quarter. The fund is positioned for the reflation trade and as such is underweight duration. Towards the end of the quarter we saw yields rally quite agressively and curves bull flatten as the efficacy of COVID vaccines to the Delta strain was questioned by markets.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/179264839.pdfOctober, 2020
The Fund outperformed its benchmark in the September quarter. An overweight position to securitised assets (in particular US and European MBS) contributed as spreads tightened. An overweight position to Italian rates also contributed to performance as country spreads continued to tighten. Over the year, the Fund outperformed its benchmark as credit spreads rallied hard post the COVID-19 led sell-off that occurred in March.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/162703294.pdfticker: ANZ0212AU
release_schedule: Monthly
commentary_block: Array
factsheet_url:
https://onepathsuperinvest.com.au/_doc/fs_WST_ANZ0212AU
manager_contact_details: Array
asset_class: Fixed Income
asset_category: Bonds - Global / Australia
peer_benchmark: Fixed Income - Bonds - Global / Australia Index
broad_market_index: Global Aggregate Hdg Index
structure: Managed Fund
fund_features:
OnePath WS-Diversified Fixed Interest aims to provide income and achieve returns (before fees, charges and taxes) that exceed the Bloomberg AusBond Composite 0+ Yr Index, over periods of three years or more. The fund is actively managed and invests predominantly in a diversified mix of Australian and international defensive assets.
- Manager Address : 242 Pitt St, Sydney NSW 2000, Australia
- Phone : +61 2 9234 8111
- Website : http://www.onepath.com.au/home.aspx
- Contact Page : https://www.onepathinsurance.com.au/about-us/contact-us/enquiry.html