What is it?
Our Bonds investment option is a conservative option predominantly invested in Australian and international debt. Some cash may also be held within this option. It is designed to provide a stable return on investment for members who are have a lower tolerance for a negative return.
Who should invest in the Bonds option?
Our Bonds option is designed for members with a short-term investment horizon (3 years or more) who want to achieve a return above inflation and can tolerate short-term market volatility.
What is the investment objective?
The Bonds option seek to achieve an investment return, after taxes and fees, above inflation – exceeding the Bloomberg AusBond Composite 0+Yr Index – over rolling 10-year periods. This forms the basis of how we invest your money.
How long should I invest in the Bonds option?
Because there is the opportunity for the value of investments to go down in the short term, we recommend a minimum investment term to avoid short-term market volatility.
For the Bonds option, the suggested minimum investment term is 3+ years.
A risk estimate is the potential for a negative return in any given year over a 20-year rolling period.
While our goal is to provide members with a positive return, external factors can influence investment performance, including broader economic trends. Risk is defined by how often an investor should expect to see a negative return out of every 20 years.
The risk estimate for the Bonds option is Low to Medium (negative annual return likelihood in 4 to less than 6 out of every 20 years). That means, in any given year, there is a 20-30% chance for a negative return.
The Bonds option is invested in Australian and international debt with a small amount of Credit Income. Some cash may also be held in the option.
Fees and other costs
The Bonds option fees will be:
- Investment management fee of 0.27%pa
- Indirect cost ratio of 0.15%pa.
For each $50,000 invested, members can expect to pay $413 in investment fees, administration fees and indirect costs for this option each year. These fees are however subject to change.
How can I change my investment choices?
You can change your investment mix at any time. Just login to your Members online account and click ‘Your account’ from the options in the left hand menu.
Alternatively, you can download and complete our Investment Switch form.
Need help making an investment choice?
Making an investment choice can be difficult. Download the "Your investment options super fact sheet" for more information on all of our investment options available to you.
Take advantage of our complimentary, over-the-phone advice service and obtain a personal recommendation on which of our investment options may be right for you.