The Fortlake Real-Higher Income Fund provides diversified exposure to a variety of return sources to deliver consistent returns above cash.
The Fortlake Real-Higher Income Fund provides diversified exposure to a variety of return sources to deliver consistent returns above cash.
Attractive income from diversified Australian bonds
The Fund invests in Australian government bonds, State (semi) government bonds, supranational bonds, investment grade corporate bonds, and other fixed income securities.
The Aura Core Income Fund aims to preserve capital and offer stable monthly income from a diversified portfolio of predominantly small to medium enterprise loans.
Unparalleled Access to Global Private Credit. A listed fund with unlisted characteristics.
A high-yield, open ended fund offering monthly distributions, quarterly redemptions and a highly diverse pool of credit loans which are secured by real assets and structural protections. (For Wholesale Investors Only)
The Fund aims to provide regular income with quarterly distributions from both diversification and risk management through exposure to a hand-picked selection of primarily corporate and government bonds (For Wholesale Investors Only).
The Mutual Cash Fund offers a diversified portfolio of fixed income credit assets with low correlation to equity markets.
Our term deposits come in many colours.
Briars Monthly Income Fund delivers investors regular monthly distributions by investing in a pool of Australian Real Property Mortgages. (For Wholesale Investors only)
Consistent returns aiming for cash + 3.50%.
Earn from 9-11% p.a., monthly income secured by Australian real estate (For Wholesale Investors Only)
The Company is raising capital by offering redeemable Preference Shares, to fund its lending business and its debt collection businesses.
Designed for investors seeking predictable outcomes - including above cash rate returns, consistent income and capital stability (For Wholesale Investors Only).
A diversified, open-ended fund with registered first mortgage security only over real estate assets primarily in metropolitan areas of Sydney and Melbourne (For Wholesale Investors Only).
Fixed interest investments, which include bonds and debentures, are popular options for those investors seeking stable returns on their investments. These financial instruments offer investors the opportunity to lend money to governments, corporations, or other entities in exchange for regular interest payments and the return of the principal amount at maturity.
Exposure to this type of investment can be achieved either by an investor's individual selection of these securities or by investing in a managed fund or exchange-traded fund (ETF) that focuses on fixed interest securities.
We explore below the differences between fixed interest, bonds, and debentures, their various types, features and risks, how to compare them, and address some frequently asked questions.
Fixed interest or fixed income refers to the broader category of investments that offer a predetermined interest rate over a specific period. The interest rate remains constant throughout the investment tenure, providing investors with a predictable stream of income.
Bonds are debt securities issued by governments or corporations to raise capital. When an investor buys a bond, they are essentially lending money to the issuer in exchange for periodic interest payments and the return of the principal amount at the bond's maturity.
A debenture is a type of bond that is not secured by specific assets (like a property mortgage). Instead, it is backed by the issuer's overall creditworthiness, making it a higher-risk investment compared to secured bonds.
Common examples include fixed deposits, certificates of deposit (CDs), and Treasury Bills (T-Bills).
Bonds can be classified based on the issuer, such as government bonds, corporate bonds, and municipal bonds, and agency bonds. They can also be categorised based on the maturity period, like short-term, medium-term, and long-term bonds.
Convertible debentures can be converted into equity shares of the issuing company, while non-convertible debentures cannot be converted.
When comparing fixed interest investments and securities consider the following factors:
There are different ways to invest in fixed income securities, including through managed funds, ETF's, or directly with the product issuer.
These are funds that pool money from many investors to buy a diversified portfolio of fixed income securities. They can focus on government bonds, corporate bonds, high-yield bonds, etc.
Similar to managed funds, ETF's are traded on stock exchanges like individual stocks. They offer a way to invest in a diversified portfolio of fixed income securities.
Investors are often able to invest directly in bonds and other fixed income opportunities through bond brokers who generally charge bond issuers to raise funds in new offerings.
Fixed income investments are generally considered an essential components of a diversified investment portfolio. While they offer stable income and a focus on capital preservation, investors must be mindful of the risks associated with changes in interest rates, creditworthiness of the issuer, and potential defaults. To make informed investment decisions, investors individuals should carefully assess their risk tolerance, investment goals, and perform thorough comparisons of the various fixed interest options available in the market and where appropriate consider managed funds or ETFs whose mandate is to specifically invest in them.
Fixed interest investments are generally considered safer than shares/equities , but they are not entirely risk-free. Government bonds are typically considered the safest.
Yes, bonds may be able to be sold in a secondary market before their maturity date. However, you will need to investigate the existence of such a secondary market and the level of liquidity within it. Their market value may fluctuate based on changes in interest rates.
In the event of an issuer default, bondholders may face difficulties in receiving interest payments and recovering the principal amount.
Bonds and debentures are both types of fixed interest investments, but they differ in terms of issuer and security. Bonds are typically issued by governments or corporations and are secured by specific assets, while debentures are generally unsecured debt instruments issued by corporations.
Interest rates play a crucial role in fixed interest investments as they determine the amount of interest income an investor will receive. When interest rates rise, the value of existing fixed interest investments may decline, and vice versa.
Fixed interest investments are generally considered less risky compared to other investment options, such as shares and equities . However, they still carry some level of risk, including credit risk (the risk of default by the issuer) and interest rate risk (the risk of changes in interest rates affecting the investment's value).
The yield on a fixed interest investment can be calculated by dividing the annual interest income by the investment's current market price. This yield is often expressed as a percentage.
The maturity period of fixed interest investments refers to the length of time until the investment reaches its full term and the principal amount repayable. This period can vary depending on the specific bond or debenture, ranging from a few months to several years.
There are complexities and a reasonable level of due diligence required in every asset class. For many investors, this is best done via an investment into a managed fund or ETF whose mandate is to invest into a spread or portfolio of investments in this asset class. It will be still necessary to consider such issues as the maturity period of the fund and/or the liquidity or redemption processes available.