Diversified Income option

Important information

From 1 February 2017, we are making some modest changes to our asset allocations. Visit www.telstrasuper.com.au/fundupdate for more information about the changes.  You may want to consider the changes if you’re thinking of changing investment options. 


Objective

To build an investment portfolio to achieve the stated return within the stated risk parameters over the specified timeframe and to produce a distributable income above the Cash rate over the medium term, while protecting the value of capital.

Who should invest?

Members who are looking for an income stream, while still achieving some growth on their initial investment capital. A minimum investment of $100,000 applies.

Investment strategy

The Diversified Income option is uniquely structured to distribute income it receives from investments, allowing members to fund part of their retirement needs without the need to sell capital assets.

When selecting investments, preference is made for expected returns predominately driven by income rather than capital growth. Income is accrued as underlying investments pay income distributions during the month. Due to the varying income distributions of the underlying investments, the income payment to members will vary from month to month.

Return objective

Outperform CPI + 2% p.a.

Investment timeframe

4 – 6 years

Risk objective

A high level of risk generating 4 to less than 6 negative annual returns over any 20 year period.

Long-term investment mix*

55% growth assets

45% defensive assets

Diversified Income option investment mix and asset ranges

Diversified Income option 

*The long-term investment mix is used as a strategic guide for investing. This split of growth and financial assets can vary from time to time as investment in each asset class may vary within the allowable ranges.  

How it works

Income returns (net of fees and taxes) for the Diversified Income option are distributed on a monthly basis and used to purchase Cash investment option units at that time. Telstra Super RetireAccess members are able to drawdown this income as part of their pension payment, reducing the need to sell capital to fund their retirement, or they can choose to re-invest the Cash units in another investment option. Accumulation members are also able to re-invest the Cash units in another investment option. 

The total income earned for the month is applied within seven business days of the following month. If a full withdrawal is made before the month end, no income distribution will take place for that month. Instead the withdrawal benefit will be inclusive of income accrued at the time of redemption.

Diversified Income option returns*

 

Accumulation returns

Telstra Super RetireAccess® returns

2015/2016 3.24%
3.96%
2014/2015  7.55% 8.12%
2013/2014 10.67% 11.60%
2012/2013 14.84% 16.29%
5 year returns N/A N/A

*Past performance is not a reliable indicator of future performance. This option was introduced on 1 July 2012 and as such, no long-term historical investment returns are available. Notional returns have not been included as the structure of the option is not based on the performance of a single index.

Subject to investment performance.

Please note, due to distribution processing time account balances, when viewed online, may reduce for a period of up to a day each month as income is distributed. Distribution payments may take up to a day. 

The aim of this information is to provide members with investment objective and strategy details (including investment mix) that we consider members reasonably need to understand the fund's investments and reflect the manner in which objectives and strategies have been formulated by the Trustee pursuant to superannuation law and discretionary powers under the Trust Deed.