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
$83.3 million

Option size1

As at 31 July 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 cash rate 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 Jul 2021
Timeframe Diversified Credit Income performance SuperRatings median performance Outperformance
1 month -0.18 - -
3 months 0.16 - -
Financial year to date -0.18 - -
1 year 2.90 - -
3 years 1.92 - -
5 years 2.32 - -
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 16 Sep 2021

Objective

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

Performance against objective

2
% p.a. over 4 years
As at 30 Jun 2021
CPI + 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 Jul 2021
Timeframe Diversified Credit Income performance SuperRatings median performance Outperformance
1 month -0.20 - -
3 months 0.26 - -
Financial year to date -0.20 - -
1 year 3.45 - -
3 years 2.31 - -
5 years 2.82 - -
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 16 Sep 2021

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 Jul 2021

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