Diversified Income

Objective

To build an investment portfolio to achieve the stated return objective within the stated risk parameters over the specified timeframe and to produce a distribution above the cash rate over the medium term, while also aiming for stability in the value of capital.

Who should invest?

Members in the retirement phase who require an income stream while still seeking some growth on their initial investment capital.

Investment strategy

The Diversified Income option is structured to make a distribution on a regular basis, allowing members to fund part of their retirement needs.

The Diversified Income product invests in a range of growth and defensive assets, based on the performance and confidence of investment markets at any point in time. When investing in growth assets, it does so in a way that aims to reduce volatility. For example, by investing in stable businesses with long histories of reliable cashflows and profitability.

Return objective^

Corporate Plus and Personal Plus members: Outperform CPI + 2% p.a.
RetireAccess members: Outperform CPI + 2.5% p.a.

Investment timeframe

4 - 8 year periods.

Risk characteristics

The Diversified Income option is expected to provide lower levels of return and short-term investment risk than the Growth and Balanced options, but higher levels than the Conservative option. This option’s risk characteristics using TelstraSuper’s four measures of investment risk are summarised in the diagrams below:

The Diversified Income option’s Standard Risk Measure* is for a “medium to high” level of risk expected to generate 3 to less than 4 negative annual returns over any 20 year period.

Long-term strategic investment mix**

53.8% Growth assets
46.2% Defensive assets

Diversified Income option investment mix and asset ranges

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.

^The investment return for the Diversified Income option is calculated on the basis of daily movements in unit prices and distributions payable to members, as if distributions are reinvested in the option’s asset pool. Distributions are not actually reinvested; they are paid into the accounts of eligible members effective the first business day of each calendar month and are invested in the Cash option.

* The Standard Risk Measure is a standardised way of communicating investment risk that has been developed by the Association of Superannuation Funds of Australia (ASFA) and the Financial Services Council (FSC)

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

# Diversified Fixed Interest comprises Australian and International fixed interest and credit securities.

How it works

Income (net of fees and taxes) for the Diversified Income option is distributed on a monthly basis‡ and used to purchase Cash investment option units at that time. 

TelstraSuper RetireAccess members are able to draw down 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 TelstraSuper RetireAccess returns
2019/2020  0.58%  0.07%
2018/2019  6.93%  7.67%
2017/2018 5.90% 7.22%
2016/2017 10.03%  11.33% 
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 5.28% 5.98%

*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, account balances, when viewed online, may reduce for a period of up to a day each month as income is distributed. This is because distribution payments may take up to a day to be processed.