At a glance
Fixed interest and cash
Short to medium 3+ years
Total estimated Indirect Cost Ratio 2014/15: 0.24%
Buy spread: nil
Sell spread: nil
Inflation + 0.5% per year^
Likelihood of negative return
0.4 in every 20 years
Risk levelRisk label
3Low to medium
5Medium to high
- Annual % returns
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See how your money would have grown if invested in this option:
Amount: Invested for:
Annual returns [PDF]
About the option
The Fixed Interest option invests in a diversified portfolio of debt securities, mainly fixed-rate bonds issued by Australian and overseas governments and companies, mortgage-backed securities and cash.
The investment managers who manage the assets in the Fixed Interest option include specialist credit managers and other managers mainly focused on managing sector and interest rate exposures.
This option is suitable for members seeking long-term capital security, while earning a rate of return above that of bank bills or from a cash management trust.
What are the option’s objectives?
- To outperform the return of a mix of the Australian and overseas bond markets (as measured by a benchmark consisting of the Bloomberg AusBond Composite Bond Index and the Barclays Capital Global Aggregate Index [hedged]).
- To achieve returns after tax and fees that exceed the inflation rate (as measured by the CPI) by at least 0.5% per year.^
^Over rolling 10 year periods