Fixed Interest portfolio
The Fixed Interest portfolio is designed to have a low level of volatility and risk, and to provide investors with a high level of income and a minimal level of capital growth.
Objective
The Fixed Interest portfolio’s objective is to achieve returns over the longer term by investing in fixed interest assets that produce mainly income with a smaller level of growth. The objective is to maintain a low level of risk and still produce returns superior to cash. It is anticipated to exceed CPI by a margin of 0.5% pa over an investment timeframe of 3 years or more.
Volatility/risk
A risk of capital losses one year in 10.
Investment strategy
This portfolio invests in 100% financial assets through its concentration on the fixed interest market.
Selection of funds will be such that the asset allocation benchmarks shown above are adhered to at all times. Movement from the benchmark will be determined within the allowable ranges indicated in brackets, subject to the investment climate prevailing at the time. Investment performance
| Period to 30 June 2008 | Distribution returns | Growth returns | Total return |
|---|
| Six months |
0.00% |
-0.96% |
-0.96% |
| One year |
1.92% |
-3.12% |
-1.20% |
| Three years |
9.10% |
-7.81% |
1.29% |
| Since inception |
8.3% |
-6.3% |
2.0% |
Distribution returns are made each six months and may include income and realised capital gains; Growth is the change in value of your unit price; Total returns is the total of Growth and Distribution returns. Returns shown are actual and are not annualised. Past investment performance is not a reliable indicator of future performance. Fixed Interest portfolio inception date 1 July 2004.
Look up investment returns for all portfolios
Unit prices
Unit prices are calculated daily and incorporate all fees related to the portfolio and the underlying investment funds. To look up the most recent unit price for each investment option, please visit our InvestmentPlan unit price page.
Investment management
The Fixed Interest portfolio uses the skills of a variety of investment managers to manage the various asset classes within the portfolio. Investments are placed proportionally into wholesale investments offered by these managers to achieve the asset allocations set out above.
* MER is the annual Investment Management Cost.
The actual Investment Cost has been calculated based on the composition of the portfolio as at 31 October 2007. Investment Costs may vary from time to time and current Investment Costs can be obtained at any time from Telstra Super Financial Planning. Changes are made on an ongoing basis on the advice of the Investment Committee to reflect market conditions. Whilst all new monies will be invested as shown in this section, residual holdings in other wholesale investment funds may remain. Funds with zero weighting may have had previous allocations.