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
$80.3 million

Option size1

As at 31 October 2020

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 Sep 2020
RBA cash rate Diversified Credit Income performance Outperformance
2.3 2.1 -0.2
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 Oct 2020
Timeframe Diversified Credit Income performance SuperRatings median performance Outperformance
1 month 0.54 - -
3 months 0.64 - -
Financial year to date 1.58 - -
1 year 0.20 - -
3 years 1.50 - -
5 years 2.39 - -
7 years - - -
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 26 Nov 2020

Objective

Outperform: CPI by 1% p.a. over 4 years2

Performance against objective

2
% p.a. over 4 years
As at 30 Sep 2020
CPI + 1% Diversified Credit Income performance Outperformance
2.3 2.5 0.2
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 Oct 2020
Timeframe Diversified Credit Income performance SuperRatings median performance Outperformance
1 month 0.62 - -
3 months 0.75 - -
Financial year to date 1.82 - -
1 year 0.30 - -
3 years 1.84 - -
5 years 2.90 - -
7 years - - -
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 26 Nov 2020

Allocations

Strategic asset allocation

3
As at 01 October 2020
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 Oct 2020

5
  • National Australia Bank - Capital Notes
  • Kiwibank Ltd 10/2027
  • Auckland International Airport Ltd 09/2027
  • GPT Wholesale Shopping Centre Fund 09/2024
  • Public Service Electric & Gas Co 08/2024
  • Ausgrid Finance Pty Ltd 10/2024
  • Bank of New York Mellon Corp/The 05/2024
  • Nationwide Building Society 08/2024
  • AusNet Services Holdings Pty Ltd 08/2028
  • US Bancorp 01/2024
  • Commonwealth Bank of Australia - Perls
  • Spark Finance Ltd 10/2027
  • Entergy Louisiana LLC 09/2023
  • Commonwealth Bank of Australia 01/2021
  • State Street Corp 05/2023
  • PNC Financial Services Group 04/2024
  • Sumitomo Mitsui Financial Group 07/2021
  • UBS Group Funding AG 05/2023
  • AMP Capital Wholesale Office Fund 10/2021
  • NSW Electricity Networks Finance 09/2030
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