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
Medium to High
Summary risk level
Sector
Option type
$409.5 million
Option size1
As at 31 August 2024
Expected frequency of negative annual return
Three to less than four in 20 years
Total investment fees and costs and transaction costs (%)
Super: 0.21% | Pension: 0.21%
Objective and performance
To invest in a range of Australian fixed interest instruments including but not limited to fixed and floating corporate and government bonds, hybrids, residential mortgage backed securities, private credit and cash. The Option will have a 20% limit to Australian Private Credit. From time to time and subject to market conditions, the Trustee may also add a modest allocation towards global fixed interest instruments. Although unlikely, equity holdings may also arise in the event of a default, restructure or conversion of an existing credit security.
Objective
To achieve returns (before fees and taxes) that exceed the RBA cash rate by 1.0% p.a. over the suggested time frame.2 As at 30 September 2024, the Australian Income option has met its performance objective.
Performance
2% p.a.
As at 31 Oct 2024
| Timeframe | Australian Income return |
|---|---|
| 1 month | 0.55 |
| 3 months | 1.57 |
| Financial year to date | 2.33 |
| 1 year | 7.71 |
| 3 years | 3.79 |
| 5 years | 2.75 |
| 7 years | 2.58 |
| 10 years | - |
Periods less than a year are not annualised.
Australian Income option performance ($)
2As at 19 Dec 2024
Objective
To achieve returns (before fees and taxes) that exceed the RBA cash rate by 1.0% p.a. over the suggested time frame.2 As at 30 June 2024, the Australian Income option has met its performance objective.
Performance against objective
2% p.a. over 4 years
As at 30 Sep 2024
| RBA + 1% | Australian Income performance | Outperformance |
|---|---|---|
| 3.1 | 4.0 | 0.9 |
Performance objectives are not promises or predictions of any particular rate of return.
Performance
2% p.a.
As at 31 Oct 2024
| Timeframe | Australian Income return |
|---|---|
| 1 month | 0.64 |
| 3 months | 1.83 |
| Financial year to date | 2.71 |
| 1 year | 8.96 |
| 3 years | 4.42 |
| 5 years | 3.23 |
| 7 years | 3.06 |
| 10 years | - |
Periods less than a year are not annualised.
Australian Income option performance ($)
2As at 19 Dec 2024
Allocations
Strategic asset allocation
3As at 28 September 2024
| Asset class | Allocation |
|---|---|
|
Australian fixed interest
|
100.0% |
|
Global Fixed Interest
|
0.0% |
- Westpac Banking Corp
- Commonwealth Bank of Australia
- ANZ Banking Group
- National Australia Bank Ltd
- Macquarie Bank Ltd
- BNP Paribas SA
- Tanarra Cr Partners
- Scentre Group
- Superannuation Fund
- National Rmbs