If you’re a short to medium-term investor who wants steady returns, the Diversified Bonds option may be suitable for you. However you should be prepared for the value of your investment to have some small movements over the short term.

Objective

To match the return of a 40% Australian and 60% International Diversified Bond Index (hedged in $AUD) after fees and tax.

Timeframe

3 years

Suited to investors with an investment timeframe of more than 3 years.

Investment fee1

0.17% p.a.

Investment base 0.17% p.a. and an investment performance 0.00% p.a. Total investment fee 0.17% p.a. More details on fees

Investors should be aware that a negative return is expected between one and two times in every 20 years.

Low to medium risk

Read more about the standard risk measure.

Account 3 months2 1 year2 3 years p.a.2 5 years p.a.2 7 years p.a.2 10 years p.a.2
Accumulation 1.14% 0.99% 3.76% 4.70% 5.23% 6.32%
Income 1.34% 1.12% 4.33% 5.45% 6.12% 6.73%
Asset allocation Ranges
Cash3
0% 0 - 10%
Fixed interest4 100% 90 - 100%

Fund managers

The fund's investments are managed by QIC and invested in the QIC Diversified Fixed Interest Fund.

Geographic breakdown
The geographic breakdown of the QIC Diversified Fixed Interest Fund was:

Region %
Australia 44.2%
US 24.0%
Europe 20.7%
Asia 2.4%
Other 8.7%

Composition
The composition of the QIC Diversified Fixed Interest Fund was:

Asset type %
Securitised 2.7%
Semi-Government 8.7%
Sovereign 22.6%
Cash (Liquidity) 11.2%
Corporate 54.8%
Other 0.0%

1. The investment base fee and investment performance fee figures are based on the actual fee for the year ended 31 March 2017 and may differ from the future fee. Past fees should not be taken as an indication of future fees as each year the expenses of managing QSuper’s investment options may vary. Both the investment fee and an administration fee of 0.20% are deducted daily from the unit price before the unit price is declared. You may be charged additional fees for insurance and other services, but you’ll find all the information in the QSuper Product Disclosure Statement for Accumulation and Income Accounts.
2. Past performance is not a reliable indicator of future performance. For periods of one year or less, the return is net of fees and tax. For periods greater than one year, the return is a compound annualised return, net of fees and tax.
3. The option is generally fully invested in a single asset class, however, it may be appropriate to hold up to 10% in cash to accommodate market changes and timing of transactions.
4. Fixed interest is defined as any interest bearing security or equivalent derivative instrument. The fixed interest asset class is managed by QIC and invested in the QIC Diversified Fixed Interest Fund. The asset allocation within the QIC Diversified Fixed Interest Fund includes an allocation to cash that is at the discretion of QIC and as such may vary from time to time. QIC's allocation to cash is captured in the fixed interest asset allocation range of 90%-100%.