Diversified Credit Income (Super)

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Investment option type Sector
Member suitability Suits members who want to invest in a specific asset class and are less comfortable with large fluctuations in the value of their investments.
Performance objective* To achieve returns (before fees and taxes and investment expenses) that exceed the RBA cash rate by 1.0% over the suggested time frame.
Investment strategy To invest 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.
Suggested investment time frame Minimum of four years
Expected frequency of negative annual return Four to less than six in 20 years
Summary risk level High
Option size# $81.7 million (as at 31 August 2020)
Total investment fees and costs and transaction costs (%) 0.39

* Performance objectives are not promises or predictions of any particular rate of return.
# Size of pension and accumulation assets.

Option Performance (% p.a.)1

Vs Objective

As of 30 Jun 2020
Diversified Credit Income Option Yield CPI + 0.5% Outperformance
4 years 2.1 1.8 0.3

Vs Peers

As of 30 Sep 2020
Diversified Credit Income Option SuperRatings Median Outperformance
1 Month -0.22 -- --
3 Months 1.03 -- --
FYTD 1.03 -- --
1 Year 0.07 -- --
3 Years 1.48 -- --
5 Years 2.42 -- --
7 Years -- -- --
10 Years -- -- --

Periods less than a year are not annualised

Some performance data are not yet available for this option.

Option Performance ($)2

Strategic asset allocation (%)3

Last updated on 30 June 2012

Strategic asset allocation (%)3

Last updated on 30 June 2012

Major Holdings4

By value (descending order) as at 31 August 20205

National Australia Bank - Capital Notes
Kiwibank Ltd 10/2027
Auckland International Airport Ltd 09/2027
GPT Wholesale Shopping Centre Fund 09/2024
Ausgrid Finance Pty Ltd 10/2024
AusNet Services Holdings Pty Ltd 08/2028
Spark Finance Ltd 10/2027
Public Service Electric & Gas Co 08/2024
Commonwealth Bank of Australia - Perls
Nationwide Building Society 08/2024
Entergy Louisiana LLC 09/2023
Commonwealth Bank of Australia 01/2021
US Bancorp 01/2024
Bank of New York Mellon Corp/The 05/2024
Citigroup Inc 01/2030
AMP Capital Wholesale Office Fund 10/2021
PNC Financial Services Group 04/2024
State Street Corp 05/2023
New Terminal Financing Co 07/2024
Sumitomo Mitsui Financial Group 07/2021

1Given the option commenced on 1 September 2014 and SuperRatings data is only released once a year, some performance data is not yet available. Past performance is not an indicator of future performance. Option returns are calculated net of investment expenses and Fund taxes but are gross of account-based fees. Due to rounding, excess return may not equate to the difference between option return and median return. The SuperRatings data is based on the SuperRatings survey for the relevant period and does not take into account any subsequent revisions or corrections made by SuperRatings.

2 Given the option commenced on 1 September 2014, only certain performance data is available. Past performance is not an indicator of future performance. This graph shows the growth of $10,000 invested in this option over the period illustrated net of investment expenses and fund taxes but gross of account-based fees. No adjustments have been made to reflect the impact of inflation.
Note that the graph uses interim daily crediting rates and does not reflect the final crediting rates which are used to calculate option performance in the table above.

3 The strategic asset allocation may change and may be altered by the trustee from time to time to suit prevailing market circumstances. Actual allocation will deviate from their targets, but are monitored so they are kept within a range approved by the Trustee.

4 These holdings may change from time to time. The above holdings are the outcome of various strategies applied by UniSuper and by a range of investment managers taking into account a variety of considerations, many of which are specific to UniSuper and superannuation funds in general. The above lists are published for informational purposes only and are not a recommendation or endorsement of any of the companies listed, for inclusion in your personal portfolio. Before selecting companies to invest in personally, you should seek professional financial advice that takes into account your personal circumstances and investment objectives. Value includes direct holdings only and does not include exposures from indirect holdings.

5 Value includes direct holdings only and does not include exposures from indirect holdings.

This information is of a general nature only and does not take into account your individual objectives, financial situation or needs. You should read the product disclosure statement and booklets relevant to your membership category, consider the appropriateness of the information having regard to your personal circumstances and consider consulting a licensed financial adviser before making an investment decision based on information contained in this document.

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* Past performance is not an indicator of future performance. This website is provided by UniSuper Management Pty Ltd, ABN 91 006 961 799 AFS Licence No. 235907 (USM). Any advice contained on this website has been prepared without taking into account your objectives, financial situation or needs. Before you act on any advice that appears on this website please consider whether it is appropriate to your personal circumstances. You should also read the relevant Product Disclosure Statement which is available on our website at unisuper.com.au/pds or you can obtain a copy by calling UniSuper on 1800 331 685. UniSuper Advice is a financial planning service generally available to UniSuper members, former members and their families through USM which is licensed to provide financial advice services and deal in financial products. For further information about UniSuper Advice, please see unisuper.com.au/advice, access the Financial Services Guide and, for any further enquiries, contact us on 1800 331 685. Copyright 2019 USM. All rights reserved. Trustee: UniSuper Limited (ABN 54 006 027 121, AFS Licence No.492806). Fund: UniSuper (ABN 91 385 943 850). Administrator: USM.