This is a single asset class option with a low to moderate exposure to risk. It is suitable for people who are seeking higher returns than cash over the medium term and who may be cashing out their super in three to five years. However, negative returns are still possible in a particular year.
- To outperform the weighted average return from the Bloomberg Ausbond Composite Bond Index (50%) and Barclays Capital Global Aggregate Index (Hedged into Australian dollars) (50%) after tax and fees over rolling five year periods.
- Limit the probability of generating a negative return to not more than 4 in 20 years.
- To earn a rate of return after tax and fees that is in excess of the median diversified fixed interest option in an appropriate industry survey over rolling five year periods.
Time Horizon 3 - 5 years l Risk Low-moderate
Investment management fee 2017/18 - 0.29%
|5 years (compound average return)||5.35%|
|10 years (compound average return)||6.30%|
Inception date: March 2005, formally known as Bonds
While we all want consistently positive super returns over the years, the reality is, super returns are like any investment in that they can go down as well as up. If you want to find out more about what type of investor you are, use our Risk Profile calculator to determine your appetite for risk, check out historical returns and read the pros and cons of switching.
Investment returns are not guaranteed, all investments have risk, and past performance is not an indicator of future performance.
*The fees stated for 2017–18 are estimated third-party investment management fees (including performance fees), based on our current asset allocation and the investment managers who currently manage money for that investment option. The fees stated are therefore predictive and may differ materially from the fees actually incurred. The actual investment management fees are calculated at the end of each year when returns for the full year are known. These are published in the annual report. There is an additional investment fee of 0.02% p.a to cover the costs associated with investing your money.