REI Super’s Premium Income Investment Option, designed to provide stable returns in volatile markets, has provided excellent returns for REI Super members.
Between 1 July 2015 and 31 March 2016, the option has returned 3.58%, far exceeding its performance objective of 2.03% (CPI + 1.0%). The 2-year return to 31 March 2016 is also extremely pleasing, giving investors a 4.58% per annum return, against a performance objective of 2.51%.
Established in 2013, the aim of the Premium Income option is to deliver a more predictable annual return than other investment options, keeping your super growing even when markets are experiencing instability. It addresses the needs of members who want to boost their investment without taking unnecessary risks.
As its name suggests, the Premium Income option is invested largely in income-producing assets, including cash, government and corporate bonds, inflation-linked bonds, Australian bank loans, and term deposits. This comprises 85%* of the portfolio.
A further 15%* is invested in growth assets, including property, equity and infrastructure.
The sustainability of your retirement savings (capital and income) is very dependent on what happens in the years before and immediately after you retire. This is one factor that cannot be controlled, but the Premium Income option provides a good deal of protection from volatility at this key time.
* Allocations shown may vary by up to +/- 15%.
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Note: Past returns are no guarantee of future performance, and investment returns of less than one year should not be relied upon as any guide to future performance.