Diversified Bonds

Investor Profile

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.

Objectives

  • To outperform the weighted average return from the UBS 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 four in 20 years.
  • To earn a rate of return after tax and fees that is in excess of the median diversified fixed interest optionin an appropriate industry survey over rolling five year periods.

Diversified-Bonds

 

Historical performance

YearFixed Interest*
2012-136.80%
2011-1211.92%
2010-114.75%
2009-107.09%
2008-099.34%
2007-083.43%
2006-073.37%
5 years (compound average return)7.95%

*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.

 

^The fees stated for 2013-14 are estimated investment management fees, based on our current understanding of those investment managers who will be appointed and the asset allocations to be made throughout 2013-14 by applying the investment strategy 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 year are known. These are published in the Annual Report.