Suitability and risk

Suits members who want to invest in a specific asset class and are less comfortable with large fluctuations in the value of their investments.
4 years
Suggested minimum investment time frame
High
Summary risk level
Sector
Option type
$79.0 million

Option size1

As at 31 August 2021

Expected frequency of negative annual return
4 to less than 6 in 20 years
Total investment fees and costs and transaction costs (%)
Super: 0.39% | Pension: 0.30% 

Objective and performance

This option invests in a range of global, Australian and New Zealand corporate bonds with some flexibility to consider allocations to other securities (including but not limited to) hybrids, emerging market debt, residential mortgage-backed securities, commercial mortgage-backed securities, cash (including short dated government securities) and municipal bonds when appropriate. Although unlikely, equity holdings may arise in the event of a default, restructure or conversion of an existing credit security.

Objective

To achieve returns that exceed the RBA cash rate by 1.0% over 4 years.2

Performance against objective

2
% p.a. over 4 years
As at 30 Jun 2021
RBA + 1% Diversified Credit Income performance Outperformance
2.0 2.1 0.1
Performance objectives are not promises or predictions of any particular rate of return.

Performance against peers

2
Compare performance against the median performance of the top funds as identified by SuperRatings.2
% p.a.
As at 31 Aug 2021
Timeframe Diversified Credit Income performance SuperRatings median performance Outperformance
1 month -0.14 - -
3 months -0.07 - -
Financial year to date -0.32 - -
1 year 2.43 - -
3 years 1.88 - -
5 years 2.19 - -
7 years 2.21 - -
10 years - - -
Periods less than a year are not annualised. Some performance data are not yet available for this option.

Diversified Credit Income option performance ($)

2
As at 18 Oct 2021

Objective

To achieve returns that exceed the RBA cash rate by 1.0% over 4 years.2

Performance against objective

2
% p.a. over 4 years
As at 30 Jun 2021
RBA + 1% Diversified Credit Income performance Outperformance
2.0 2.5 0.5
Performance objectives are not promises or predictions of any particular rate of return.

Performance against peers

2
Compare performance against the median performance of the top funds as identified by SuperRatings.2
% p.a.
As at 31 Aug 2021
Timeframe Diversified Credit Income performance SuperRatings median performance Outperformance
1 month -0.16 - -
3 months -0.01 - -
Financial year to date -0.35 - -
1 year 2.90 - -
3 years 2.26 - -
5 years 2.66 - -
7 years 2.69 - -
10 years - - -
Periods less than a year are not annualised. Some performance data are not yet available for this option.

Diversified Credit Income option performance ($)

2
As at 18 Oct 2021

Allocations

Strategic asset allocation

3
As at 30 June 2016
Asset class Allocation
Global Credit
65.0%
Australian & New Zealand Credit
35.0%
Global High Yield
0.0%
Australian Shares
0.0%
International Shares
0.0%

Major holdings

4

By value (descending order) as at 31 Aug 2021

5
  • National Australia Bank - Capital Notes
  • Citigroup Inc 05/2032
  • Auckland International Airport Ltd 09/2027
  • Nationwide Building Society 08/2024
  • Kiwibank Ltd 10/2027
  • GPT Wholesale Shopping Centre Fund 09/2024
  • Ausgrid Finance Pty Ltd 10/2024
  • Commonwealth Bank of Australia - Perls
  • AusNet Services Holdings Pty Ltd 08/2028
  • Spark Finance Ltd 10/2027
  • Danske Bank AS 02/2030
  • Swedbank AB 01/2028
  • Public Service Electric & Gas Co 08/2024
  • Barclays PLC 04/2025
  • Bank of New York Mellon Corp/The 05/2024
  • NTT Finance Corp 03/2028
  • Entergy Louisiana LLC 09/2023
  • US Bancorp 01/2024
  • New Terminal Financing Co 07/2024
  • Bank of America Corp 04/2032
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