The Motor Trades Association of Australia (MTAA) Superannuation Fund has had a “pleasing” uptake by members of a new investment option that is a hybrid between growth and capital protection, designed particularly for those transitioning into retirement.


The Income Focused Option is designed to deliver capital stability and manage investment volatility, targeting a reliable income stream of RBA cash rate +2 per cent per year over the medium term. It sits between MTAA’s existing conservative and balanced products on the risk/return spectrum and has a significant tilt towards cash and dividend-generating listed equities (see graph). The option also invests in less volatile income-yielding assets such as infrastructure, property and alternative credit assets.

Leeanne Turner, chief executive of MTAA, said the product was for both those in the accumulation and pension phase as it targeted a reliable income stream, something she believes to be attractive as the global financial crisis is still fresh in the minds of a large cohort approaching retirement.

“The option is targeted at investors close to or transitioning to retirement, but as it still retains some exposure to growth assets, younger members with larger than average superannuation balances may also find this option appealing,” Turner said.

She added while the product covers all facets and is addressing a gap in the market MTAA is continuing to work on dedicated post-retirement options.

The option has $3.3 million in funds with 113 members. Most are in the accumulation phase, but there are some in the pension space.

In a statement MTAA said the key features of the Income Focused Option are:

A pre-mixed investment option that targets a diversified portfolio of income-yielding assets (cash, dividend-generating listed equities, fixed interest, infrastructure, property).

No exposure to private equity.

Sits between the existing Conservative and Balanced / My AutoSuper Options on the risk/return spectrum.

MTAA(Source: MTAA)


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