Fixed Interest

The above table shows the strategic asset allocation (Target %) and the minimum and maximum amounts we can invest in each asset class (Range %) effective 1 October 2020. Note that each of the asset classes may include small or residual cash balances for portfolio management purposes and we may vary the strategic asset allocation and asset allocation ranges for an investment option from time to time without prior notice.

The actual asset allocations vary over time with market movements. Click here to view the latest asset allocations for each of our investment options.

Currency Exposure
Target: 0%
Range: 0% to 5%
These currency exposure targets and ranges refer to the proportion of assets that are subject to foreign exchange rate movements. The actual currency exposure in place at a point in time depends on market conditions and the liquidity needs of the investment option.

Summary

Invests in a passively managed portfolio of predominately Australian fixed income investments such as government and corporate bonds. Note that the international fixed income investments are fully hedged, meaning they are protected against the impact of currency fluctuations on investment returns.

Standard Risk Measure:

5 – Medium to high

Please note: The Standard Risk Measure is based on the estimated number of negative annual returns over a 20-year period and is not a complete assessment of all forms of risk. In particular, it does not take into account the size of a potential negative return. Despite the Fixed Interest investment option being assessed as having a Standard Risk Measure of ‘5 – Medium to High’, when we assess the expected risk more holistically, the option is only expected to have a moderate level of risk.

Who might invest in this option?

This option may suit medium-term investors seeking returns that keep pace with inflation in the long term, but are willing to accept moderate fluctuations in returns over the shorter term, including negative returns in some years.