The International Fixed Interest Investment Option is one of nine DIY Mix Investment Options available to AustralianSuper members.

AustralianSuper’s other DIY Mix Investment Options include Australian Shares, International Shares, Australian Sustainable Shares, International Sustainable Shares, Property, Australian Fixed Interest, Diversified Fixed Interest and Cash.

 

Investment results for International Fixed Interest

Investment strategy

To invest with index managers in international fixed interest securities (such as inflation-linked, government and non-government bonds), including emerging markets.

Currency hedging is used, meaning theoption is protected as fully as possiblefrom foreign exchange movements.

Investment objective

To outperform CPI + 1-2% pa and match the return of the Citigroup WGB Hedged Index over the medium-term*.

Minimum investment timeframe

Short to medium-term: If you choose this option, be prepared to stay invested in it for up to 3 years before it meets its objectives.

Risk classification

Low to medium risk: Returns can fluctuate slightly from year to year.

Expected frequency of negative annual return

Approximately 1 to 2 years in every 10.

Range of annual returns to date

Since this option was offered in 2002, its annual investment returns have been within the range shown:

Date of inception

1/03/2002

Investment management fee:

2009    0.18%

* Please note that the returns quoted are net of fees and tax. The 1 year, 3 year, 5 year and since inception figures, where they appear, are rolling returns as at 30 June 2008. These historical returns are the combined return information from previous ARF and STA investment options.

Where only one of the merging funds previously offered an equivalent to an option in the new product suite, the returns of that option have been used. Where both funds offered an equivalent option, the returns have been asset weighted across both options on a monthly basis, as per industry best practice. Where data isn’t available for one or both of the equivalent options, the monthly returns have been averaged. The same process has been used for calculating historical investment fees. Investment returns are not guaranteed as all investments carry some risk. Past performance gives no indication of future returns.

The strategic asset allocation and other information shown in this section is current as at 30 June 2008. The Trustee may alter the strategic asset allocation or the composition of individual asset classes from time to time to suit prevailing market circumstances.

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