OnePath WS-Emerging Companies (MMF0112AU) Report & Performance

What is the OnePath WS-Emerging Companies fund?

OnePath Wholesale Emerging Companies Trust aims to achieve returns (before fees, charges and taxes) that exceed the S&P/ASX Small Ordinaries Accumulation Index, over periods of five years.

  • The fund invests predominantly in a diversified portfolio of smaller companies in accordance with a disciplined Australian shares investment process.
  • Suitable for investors seeking higher long-term returns and targeted exposure to the Australian small cap equity market.
  • Minimum investment time horizon is 7 years.

Growth of $1000 Investment Over Time

Performance Report

Peer Comparison Report

Peer Comparison Report

Latest News & Updates For OnePath WS-Emerging Companies

OnePath WS-Emerging Companies Fund Commentary June 30, 2023

The global economy expanded in the second quarter despite weakness in manufacturing. The regional banking mini crisis in the U.S. flared up again early in the second quarter with the failure of another bank but then calmed. The U.S. and European economies have shown surprising resilience, helped by strong labor markets. China’s economic recovery continued during the period, although it was uneven and did lose some momentum. The reopening has largely benefited the services component of the economy, while slowing growth momentum globally has meant weaker-than-hoped manufacturing activity. Inflation generally eased in developed economies, largely driven by moderation in the goods component of inflation.

However, core inflation remained more stubborn. This caused developed central banks to continue tightening. The Bank of Canada resumed its tightening after a pause that started in January; the Reserve Bank of Australia also resumed rate hikes after a brief pause. Despite hotter inflation in Japan, the Bank of Japan maintained its accommodative monetary policy. The People’s Bank of China (PBoC) moved to become even more accommodative late in the second quarter.

READ HISTORICAL PERFORMANCE COMMENTARIES

Product Snapshot

  • Product Overview
  • Performance Review
  • Peer Comparison
  • Product Details

Product Overview

Fund Name APIR Code
? A Product Code is unique a identifier code issued by a group or governing body, to reference products in a large group. For an example, APIR codes are commonly used for Funds and Ticker codes are commonly used for Securities such as ETFs and Stocks.
Structure
?
Asset Class
? An Asset Class breakdown provides the percentages of core asset classes found within a mutual fund, exchange-traded fund, or another portfolio. Asset classes (in microeconomics and beyond) generally refer to broad categories such as equities, fixed income, and commodities.
Asset Category
? An Asset Category is a grouping of investments that exhibit similar characteristics and are subject to the same laws and regulations. Asset categories (or a sub-asset class) are made up of instruments which often behave similarly to one another in the marketplace, looking down to the Asset Category level is important if looking to build a diversified portfolio.
Peer Benchmark Name
? A Peer Index (benchmark) refers to a peer group of investment managers who have the same investment style or category. It is used to compare the performance of one manager to their peer group, which makes it simpler for investors to choose between the vast number of investment managers.
Broad Market Index
? A Market Index (benchmark) refers to a hypothetical portfolio of investments that represents a segment, asset or category of an investable market. Market Indices are used to benchmark managers performance, to assist their style reliability and ability to provide excess returns.
FUM
? Funds/Assets under management (AUM) is the total market value of the investments that a person or entity manages on behalf of clients. Assets under management definitions and formulas vary by company.
Management Fee
? A management fee is a charge levied by an investment manager for managing an investment fund. The management fee is intended to compensate the managers for their time and expertise for selecting finanical products and managing the portfolio.
Performance Fee
? A performance fee is a payment made to an investment manager for generating positive returns. This is as opposed to a management fee, which is charged without regard to returns. A performance fee can be calculated many ways. Most common is as a percentage of investment profits, often both realized and unrealized. It is largely a feature of the hedge fund industry, where performance fees have made many hedge fund managers among the wealthiest people in the world.
Spread
? A spread can have several meanings in finance. Basically, however, they all refer to the difference between two prices, rates or yields. In one of the most common definitions, the spread is the gap between the bid and the ask prices of a security or asset, like a stock, bond or commodity. This is known as a bid-ask spread.
OnePath WS-Emerging CompaniesMMF0112AUManaged FundsDomestic EquityAustralian Small CapDomestic Equity - Small Cap IndexASX Index Small Ordinaries Index42.54 M0.95%0.00%0.38%

Performance Review

Fund Name Last Month
? Returns after fees in the most recent (last) month).
3 Months Return
? Returns after fees in the most recent 3 months.
1 Year Return
? Trailing 12 month returns.
3 Years Average Return
? Average Annual returns from the last 3 years.
Since Inc. Average Return
? Average (annualised) returns since inception
1 Year Std. Dev. (Annual)
? The standard deviation (or annual volatility) of the last 12 months.
3 Years Std. Dev. (Annual)
? The average standard deviation (or annual volatility) from the last 3 years.
Since Inc. Std. Dev. (Annual)
? The average standard deviation (or annual volatility) since the fund inception.
1 Year Max Drawdown
? The maximum drawdown in the last 12 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
3 Year Max Drawdown
? The maximum drawdown in the last 36 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
Since Inc. Max Drawdown
? The maximum drawdown since inception - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
OnePath WS-Emerging Companies4.46%6.44%22.45%1.19%8.37%12.01%15.97%15.72%-4.13%-27.09%-50.2%

Peer Comparison

Fund Name Peer Index Name
? A group of individuals who share similar characteristics and interests are called peer groups. Peer group analysis is an essential part of assessing a price for a particular stock in investment research. The emphasis here is on making a comparison, meaning that the peer group constituents should be more or less identical to the company being examined, especially in terms of their main business and market capitalization areas.
12 Months Excess Return
? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.
Excess Return Annualised Since Inception
? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.
12 Months Alpha
? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market return over 12 months. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.
Alpha Annualised Since Inception
? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market annualized since inception. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.
12 Months Beta
? Rolling 12Month Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).
Beta Annualised Since Inception
? Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).
12 Months Tracking Error
? 12Month Tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark over the last 12 months. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.
Tracking Error Since Inception
? Since Inception tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark since inception. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.
12 Months Correlation
? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.
Correlation Since Inception
? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.
OnePath WS-Emerging CompaniesDomestic Equity - Small Cap Index1.84%-2.11%NA%NA%NA%13.83%5.35%0.950.94

Product Details

Fund Name Verifed by SMSF Mates Manager Address Phone Website Email
OnePath WS-Emerging CompaniesYes-http://www.onepath.com.au/home.aspx-

Product Due Diligence

What is OnePath WS-Emerging Companies

OnePath WS-Emerging Companies is an Managed Funds investment product that is benchmarked against ASX Index Small Ordinaries Index and sits inside the Domestic Equity - Small Cap Index. Think of a benchmark as a standard where investment performance can be measured. Typically, market indices like the ASX200 and market-segment stock indexes are used for this purpose. The OnePath WS-Emerging Companies has Assets Under Management of 42.54 M with a management fee of 0.95%, a performance fee of 0.00% and a buy/sell spread fee of 0.38%.

How has the investment product performed recently?

The recent investment performance of the investment product shows that the OnePath WS-Emerging Companies has returned 4.46% in the last month. The previous three years have returned 1.19% annualised and 15.72% each year since inception, which is when the OnePath WS-Emerging Companies first started.

How is risk measured in this investment product?

There are many ways that the risk of an investment product can be measured, and each measurement provides a different insight into the risk present. They can be used on their own or together to perform a risk assessment before investing, but when comparing investments, it is common to compare like for like risk measurements to determine which investment holds the most risk. Since OnePath WS-Emerging Companies first started, the Sharpe ratio is NA with an annualised volatility of 15.72%. The maximum drawdown of the investment product in the last 12 months is -4.13% and -50.2% since inception. The maximum drawdown is defined as the high-to-low decline of an investment during a particular time period.

What is the relative performance of the investment product?

Relative performance is what an asset achieves over a period of time compared to similar investments or its peers. Relative return is a measure of the asset's performance compared to the return to the other investment. The OnePath WS-Emerging Companies has a 12-month excess return when compared to the Domestic Equity - Small Cap Index of 1.84% and -2.11% since inception.

Does the investment product produce Alpha over its Peers?

Alpha is an investing term used to measure an investment's outperformance relative to a market benchmark or peer investment. Alpha describes the excess return generated when compared to peer investment. OnePath WS-Emerging Companies has produced Alpha over the Domestic Equity - Small Cap Index of NA% in the last 12 months and NA% since inception.

What are similar investment products?

For a full list of investment products in the Domestic Equity - Small Cap Index category, you can click here for the Peer Investment Report.

What level of diversification will OnePath WS-Emerging Companies provide?

OnePath WS-Emerging Companies has a correlation coefficient of 0.94 and a beta of 1 when compared to the Domestic Equity - Small Cap Index. Correlation measures how similarly two investments move in relation to one another. This establishes a 'correlation coefficient', which has a value between -1.0 and +1.0. A 100% correlation between two investments means that the correlation coefficient is +1. Beta in investments measures how much the price moves relative to the broader market over a period of time. If the investment moves more than the broader market, it has a beta above 1.0. If it moves less than the broader market, then the beta is less than 1.0. Investments with a high beta tend to carry more risk but have the potential to deliver higher returns.

How do I compare the investment product with its peers?

For a full quantitative report on OnePath WS-Emerging Companies and its peer investments, you can click here for the Peer Investment Report.

How do I compare the OnePath WS-Emerging Companies with the ASX Index Small Ordinaries Index?

For a full quantitative report on OnePath WS-Emerging Companies compared to the ASX Index Small Ordinaries Index, you can click here.

Can I sort and compare the OnePath WS-Emerging Companies to do my own analysis?

To sort and compare the OnePath WS-Emerging Companies financial metrics, please refer to the table above.

Has the OnePath WS-Emerging Companies been independently verified by SMSF Mate?

This investment product is in the process of being independently verified by SMSF Mate. Once we have verified the investment product, you will be able to find more information here.

How can I invest in OnePath WS-Emerging Companies?

If you or your self managed super fund would like to invest in the OnePath WS-Emerging Companies please contact via phone or via email .

How do I get in contact with the OnePath WS-Emerging Companies?

If you would like to get in contact with the OnePath WS-Emerging Companies manager, please call .

Comments from SMSF Mates

SMSF Mate does not receive commissions or kickbacks from the OnePath WS-Emerging Companies. All data and commentary for this fund is provided free of charge for our readers general information.

Historical Performance Commentary

Performance Commentary - May 31, 2023

The first quarter of 2023 saw the reacceleration of the global economy. Despite some headwinds created by aggressive monetary policy tightening in 2022, the first months of the year were characterized by a relatively strong global economy. The situation was helped by a low unemployment rate in Western developed countries, a robust rebound for the Chinese economy thanks to its reopening and a mild winter in Europe, all of which led to lower energy prices. China’s economy benefited from a strong post-COVID reopening as well as improved pricing and investment in the property sector. Europe saw better-thanexpected economic strength, helped by lower energy prices. Developed central banks continued to hike rates during the quarter. However, major central banks became less aggressive, downsizing the level of their rate hikes as they neared the end of their respective tightening cycles. One major central bank, the Bank of Canada, decided to enact a conditional pause of its tightening cycle. Inflation generally moderated, largely driven by some balance in the goods component of inflation. However, services ex-housing inflation is a significant concern for the U.S. Federal Reserve, especially given that the labormarket remains tight. The last month of the quarter saw problems erupt in the banking sector, which came under pressure as a result of aggressive monetary policy tightening. However, the issues did not appear to be systemic, and a rapid response from policymakers helped to calm markets.

Performance Commentary - April 30, 2023

The first quarter of 2023 saw the reacceleration of the global economy. Despite some headwinds created by aggressive monetary policy tightening in 2022, the first months of the year were characterized by a relatively strong global economy. The situation was helped by a low unemployment rate in Western developed countries, a robust rebound for the Chinese economy thanks to its reopening and a mild winter in Europe, all of which led to lower energy prices. China’s economy benefited from a strong post-COVID reopening as well as improved pricing and investment in the property sector. Europe saw better-thanexpected economic strength, helped by lower energy prices. Developed central banks continued to hike rates during the quarter. However, major central banks became less aggressive, downsizing the level of their rate hikes as they neared the end of their respective tightening cycles. One major central bank, the Bank of Canada, decided to enact a conditional pause of its tightening cycle.

Inflation generally moderated, largely driven by some balance in the goods component of inflation. However, services ex-housing inflation is a significant concern for the U.S. Federal Reserve, especially given that the labormarket remains tight. The last month of the quarter saw problems erupt in the banking sector, which came under pressure as a result of aggressive monetary policy tightening. However, the issues did not appear to be systemic, and a rapid response from policymakers helped to calm markets.

Performance Commentary - February 28, 2023

During the September quarter, Karara was replaced by Acadian as the manager of the portfolio. Acadian generated very strong performance over the quarter from stock and industry sector selection relative to the S&P/ASX Small Ords index. Good stock selection in Banks, Consumer Discretionary, Energy, Industrials, IT, Metals and Mining, while a large overweight in the Energy secotor was the main contributor to sector outperformance. Stock selection in Gold dectracted performance. Some of the larger stock contributors included oveweigths in New Hope and NIB and underweight Brainchip, Magelln and Megaport.

Performance Commentary - December 31, 2022

During the September quarter, Karara was replaced by Acadian as the manager of the portfolio. Acadian generated very strong performance over the quarter from stock and industry sector selection relative to the S&P/ASX Small Ords index. Good stock selection in Banks, Consumer Discretionary, Energy, Industrials, IT, Metals and Mining, while a large overweight in the Energy secotor was the main contributor to sector outperformance. Stock selection in Gold dectracted performance. Some of the larger stock contributors included oveweigths in New Hope and NIB and underweight Brainchip, Magelln and Megaport.

Performance Commentary - October 31, 2022

During the September quarter, Karara was replaced by Acadian as the manager of the portfolio. Acadian generated very strong performance over the quarter from stock and industry sector selection relative to the S&P/ASX Small Ords index. Good stock selection in Banks, Consumer Discretionary, Energy, Industrials, IT, Metals and Mining, while a large overweight in the Energy secotor was the main contributor to sector outperformance. Stock selection in Gold dectracted performance. Some of the larger stock contributors included oveweigths in New Hope and NIB and underweight Brainchip, Magelln and Megaport.

Performance Commentary - September 30, 2022

During the September quarter, Karara was replaced by Acadian as the manager of the portfolio. Acadian generated very strong performance over the quarter from stock and industry sector selection relative to the S&P/ASX Small Ords index. Good stock selection in Banks, Consumer Discretionary, Energy, Industrials, IT, Metals and Mining, while a large overweight in the Energy secotor was the main contributor to sector outperformance. Stock selection in Gold dectracted performance. Some of the larger stock contributors included oveweigths in New Hope and NIB and underweight Brainchip, Magelln and Megaport.

Performance Commentary - August 31, 2022

Global markets were rattled in June after several central banks lifted interest rates to fight inflation, stoking fears of recession. The US Federal Reserve lifted its benchmark rate in the biggest increase since 1994, while central banks in Switzerland, England, New Zealand and Australia all followed. Data in the US showed inflation running at the highest level in 40 years. In Australia the broad-based S&P/ASX 300 Index ended the month down 2.76% while the Small Ordinaries Index fell 7.01%. The US Fed lifted the official interest rate by 0.75% as it intensified efforts to combat inflation. Fed Chairman Jerome Powell pointed to another 0.50% to 0.75% increase at the July meeting however he added that large increases like that in June would not become ‘‘common’’.

In Australia, the Reserve Bank blindsided many economists when it increased the cash rate from 0.35% to 0.85%, the largest increase in 22 years, and forecast inflation to peak above 7% later this year. ‘‘While inflation is lower than in most other advanced economies, it is materially higher than earlier expected,’’ Governor Phillip Lowe said, citing supply chain and Ukraine as the main contributors

Governor Lowe noted that a cash rate of 2.5% was a ‘‘reasonable’’ expectation for how high rates would get to ‘‘at some point’’, but how fast they got there would be determined by future events. The yield on the 10-year Australian government bond rose to 4.2%, a level not seen since 2014. The yield on the three-year bond surged 15 basis points to 3.82%, the highest level since March 2012.

Commodity prices were mixed. Supply chain pressures saw Brent Oil climb 10% to $122 while Iron Ore prices dropped 5% to$137 as China Covid restrictions impacted demand. Gold fell US$60 to US$1,852 largely reflecting the strength of the US dollar, the secondbest performing fiat currency this year to date, coming in behind the Russian ruble.

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