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
$86.7 million

Option size1

As at 31 January 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 31 Dec 2020
RBA cash rate Diversified Credit Income performance Outperformance
2.2 2.3 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 Jan 2021
Timeframe Diversified Credit Income performance SuperRatings median performance Outperformance
1 month 0.05 - -
3 months 1.68 - -
Financial year to date 3.28 - -
1 year 1.03 - -
3 years 1.73 - -
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 08 Mar 2021

Objective

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

Performance against objective

2
% p.a. over 4 years
As at 31 Dec 2020
CPI + 1% Diversified Credit Income performance Outperformance
2.2 2.8 0.6
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 Jan 2021
Timeframe Diversified Credit Income performance SuperRatings median performance Outperformance
1 month 0.06 - -
3 months 1.93 - -
Financial year to date 3.78 - -
1 year 1.23 - -
3 years 2.08 - -
5 years 3.39 - -
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 08 Mar 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 Jan 2021

5
  • National Australia Bank - Capital Notes
  • Auckland International Airport Ltd 09/2027
  • Kiwibank Ltd 10/2027
  • Nationwide Building Society 08/2024
  • NBN Co Ltd 12/2030
  • GPT Wholesale Shopping Centre Fund 09/2024
  • AusNet Services Holdings Pty Ltd 08/2028
  • Ausgrid Finance Pty Ltd 10/2024
  • Spark Finance Ltd 10/2027
  • SWEDBANK AB 0.20 01/12/28
  • Public Service Electric & Gas Co 08/2024
  • Barclays PLC 04/2025
  • Commonwealth Bank of Australia - Perls
  • Bank of New York Mellon Corp/The 05/2024
  • AMP Capital Wholesale Office Fund 10/2021
  • Entergy Louisiana LLC 09/2023
  • PepsiCo Inc 2.625 04/2026
  • US Bancorp 01/2024
  • NSW Electricity Networks Finance 09/2030
  • New Terminal Financing Co 07/2024
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