The Mutual Income Fund is a portfolio of debt instruments issued by the major Australian banks and other Australian Authorised Deposit-taking Institutions (ADIs).
We have a pure fixed income focus and construct bespoke portfolios/accounts that cater for each client’s individual fixed income investing objectives including liquidity, credit, duration, and diversification (Wholesale Investors Only).
UTIP aims to track the performance of an index (before fees and expenses) that provides exposure to a portfolio of US Treasury Inflation-Protected Securities (‘TIPS’), hedged into AUD. TIPS are a type of government bond issued by the US Treasury, whose face value and interest payments are adjusted for inflation, as measured by US CPI.
BNDS invests in an actively managed, diversified portfolio of Australian bonds and aims to outperform the Bloomberg AusBond Composite Index over rolling three-year periods.
The Russell Investments Australian Select Corporate Bond ETF (the 'Fund') seeks to track the DBIQ 0-4 year Investment Grade Australian Corporate Bond Index ('the Index') which comprises predominantly investment-grade Australian corporate fixed income securities. The Fund aims to provide exposure to the largest and most liquid Australian corporate bonds, as identified by certain eligibility criteria including minimum credit rating, minimum issuance size and term to maturity. The Fund also aims to deliver diversified risk through equally weighting the securities on reconstitution to ensure that the exposure is not biased towards the largest borrowers.
The Fund objective is to achieve a return in excess of global bond markets.
The Trust is a leading fixed income product with a highly diversified portfolio of Australian debt assets with a strong bias towards trade and debtor finance and includes a global investor base. (For Wholesale Investors Only)
The fund aims to provide investors with the performance of the Bloomberg Global Aggregate Corporate Bond Index (AUD Hedged), before fees and expenses. The index is designed to measure the AUD hedged performance of the global investment grade corporate fixed-rate debt market.
US10 aims to track the performance of an index (before fees and expenses) that provides exposure to a portfolio of fixed rate 7-10 year US Treasury bonds, hedged into AUD.
The fund aims to generate attractive returns by dynamically investing in global fixed income instruments. It aims to provide diversification against equity risk as well as capital growth and some income.
28BB provides access to attractive returns from a diversified portfolio of high-yielding, investment-grade, Australian corporate bonds maturing in the 12 months leading up to May 2028. The fund targets fixed monthly income payments.
XGOV invests in a portfolio of Australian dollar denominated Australian Government Bonds with maturity dates between 10 and 20 years with the aim of providing investment returns (before fees and costs) that closely track the returns of the Index.
Invest in bonds that potentially pay higher income.
The Global X Australian Bank Credit ETF (BANK) is an index-based ETF that invests in a diversified portfolio of Australian banking debt across the full capital structure excluding shares. It comprises fixed and floating-rate bonds, senior and subordinated debt (Tier 2 Capital), and hybrid securities (Additional Tier 1 Capital)
TBIL invests in a portfolio of US dollar denominated Treasury Bills issued by the US Government with a maturity ranging from 1-3 months. This fund aims to provide investment returns, before fees and other costs, that closely track the returns of the Index.
Bond investing is a fundamental part of the fixed-income securities market.
It involves purchasing debt instruments issued by governments, municipalities, and corporations.
Bond investing involves buying bonds to earn interest income and, potentially, to achieve capital appreciation.
A bond is essentially a loan made by an investor to a borrower (the issuer), who promises to pay back the principal amount at a specified maturity date, along with periodic interest payments, known as coupon payments.
There are several types of bonds, including:
The three main features of Bond investing are:
There are four main risks of Bond investing:
Investors can evaluate Bonds using several criteria:
Investors can invest in Bonds through various avenues:
It varies by bond type; some can be purchased for as little as $1,000.
Bond funds can be less risky than individual bonds due to their diversification benefits, but they can also be affected by market volatility.
Many brokerage platforms allow for the automatic reinvestment of interest payments.
Bond ratings are assessments of the creditworthiness of a bond issuer, ranging from AAA (highest quality) to D (default).
Higher-rated Bonds are generally considered safer, while lower-rated bonds may offer higher yields but come with increased risk.
Yield is the income return on an investment, typically expressed as a percentage.
For Bond investors, yield can refer to the coupon yield, current yield, or yield to maturity (YTM), which considers total returns if the bond is held to maturity.
Diversification in Bond investing can be achieved by investing in bonds with different maturities, credit qualities, and types (government, municipal, corporate).
This helps spread risk and can moderate the impact of interest rate fluctuations.
Inflation erodes purchasing power, which can negatively impact upon the real returns on bonds.
To mitigate this risk, Bond investors may look for inflation-protected securities, like TIPS (Treasury Inflation-Protected Securities).
A Bond’s face value (or par value) is the amount paid back to the bondholder at maturity, whereas a Bond’s market value is the current price at which the Bond can be bought or sold in the market, which can fluctuate based on interest rates and issuer credit quality.
In summary, Bond investing provides a relatively stable income source with a lower level of risk compared to equities.
Understanding the types, features, and risks of Bond investing is essential for making informed investment decisions.
By comparing key metrics such as yield, credit ratings, and utilising diversified strategies like Bond funds, investors can optimise their bond portfolios effectively.
As market conditions evolve, staying informed and adapting investment strategies is crucial for successful Bond investing.
