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
$81.7 million

Option size1

As at 31 August 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 Jun 2020
RBA cash rate Diversified Credit Income performance Outperformance
1.8 2.1 0.3
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 30 Sep 2020
Timeframe Diversified Credit Income performance SuperRatings median performance Outperformance
1 month -0.22 - -
3 months 1.03 - -
Financial year to date 1.03 - -
1 year 0.07 - -
3 years 1.48 - -
5 years 2.42 - -
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 25 Oct 2020

Objective

Outperform: CPI by 0.5% p.a. over 4 years2

Performance against objective

2
% p.a. over 4 years
As at 30 Jun 2020
CPI + 0.5% Diversified Credit Income performance Outperformance
1.8 2.6 0.8
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 30 Sep 2020
Timeframe Diversified Credit Income performance SuperRatings median performance Outperformance
1 month -0.25 - -
3 months 1.20 - -
Financial year to date 1.20 - -
1 year 0.15 - -
3 years 1.82 - -
5 years 2.94 - -
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 25 Oct 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 Aug 2020

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