IAM Wholesale Balanced Model Portfolio

The portfolio is built with Investment Grade Bonds and is for investors who are looking to manage risk and earn higher than average yield.

This balanced model portfolio has 10 securities with equal weightings of 10%, yielding over 7% pa.

The portfolio was constructed with the dual aim to manage risk and earn higher than average yield, while striking the right balance between fixed and floating rate securities in the current interest rate environment.

The portfolio is concentrated around the 3-5 year maturity given that is where we believe relative value is optimised. As you move out the credit curve in the BBB space, the credit spread per additional year of maturity gets incrementally smaller out 5+ years. Furthermore, at the 3-5 year maturity the yield is optimised per unit of duration (risk). Investors can pick up 80-90% of the yield available while only taking 50% of the interest rate risk embedded in the government bond curve.

As at 31 March 2024

^* Note inception of the balanced model portfolio was 1 September 2022. Performance is measured as a total return. 

Click here for more information on the above indices. 

The projected cash flows (2 year forward) is the forecasted income investors would receive from investing A$500k face value in the Wholesale Investment Grade Model Portfolio.

Cash flows are calculated based on next call for principal cash flow figures with the following applying:

• Cash flows for fixed rate bonds are set out and paid in accordance with the disclosure documents for the bonds;
• Cash flows for floating rate bonds assume a future rate of underlying index 3m BBSW for all coupon refixes.

For more information

Click here for portfolio commentary and more information on the Wholesale Balanced Model Portfolio.

Click here for information on the Fixed Rate Tier 2 Model Portfolio

Click here for information on the Floating Rate Tier 2 Model Portfolio.

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Disclaimer: The information in this document is for general information purposes only and does not purport to contain all matters relevant to any particular or financial instrument. It is not intended to be a recommendation, offer or invitation to purchase, sell or otherwise deal in securities or other investments. Before making any decisions in respect to a financial product, you should read the relevant Financial Services Guide and Product Disclosure Statement and seek independent and specific advice from an appropriately qualified professional. Income Asset Management Group and its subsidiaries shall not be liable for any errors, omissions, defects, or misrepresentations in the information or for any loss or damage (whether direct or indirect) suffered by persons who use or rely on the information contained here. The Group is fundraising for The Smith Family. For every client who opens an IAM Capital Markets account, IAM Group will donate $150 to The Smith Family. The Group is authorised by The Smith Family (Level 9, 117 Clarence Street, Sydney NSW 2001, Ph: 1300 326 459) to fundraise on its behalf in ACT, NSW, NT, QLD, SA, VIC, WA, and TAS. All funds raised will go directly to Australians. 

IAM Group offers general financial product advice only. As a result, any information or advice, has been provided without taking account of your objectives, financial situation and needs. Because of this, you should, before acting on any advice from IAM consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If the information or any advice, relates to the acquisition, or possible acquisition, of a particular financial product, you should obtain and consider the product disclosure statement or documents relating to the product before making any decision about whether to acquire the product. Neither IAM Group, nor any of its directors, authorised representatives, employees, or agents, makes any representation or warranty as to the reliability, accuracy, or completeness, of any information or advice. Nor do they accept any liability or responsibility arising in any way (including negligence) for errors in, or omissions from, any information or advice. IAM Group, its staff and related parties earn fees and revenue from dealing in the securities as principal or otherwise and may have an interest in any securities mentioned. Any reference to credit ratings of companies, entities or financial products must only be relied upon by a ‘wholesale client’ as that term is defined in section 761G of the Corporations Act 2001 (Cth). IAM Group does not provide tax advice and is not a registered tax agent or tax (financial) advisor, nor are any of the IAM Group staff or authorised representatives. IAM Group does not make a market in the securities or products that may be mentioned. 

An investment in notes or corporate bonds should not be compared to a bank deposit. Notes and corporate bonds have a greater risk of loss of some or all of an investor’s capital when compared to bank deposits. Past performance of any product is not a reliable indication of future performance. Any forecasts are predictive in character and based on specified assumptions generally available at the time and no reliance should be placed on the accuracy of any forecast information. The actual results may differ substantially from the forecasts and are subject to change without further notice. IAM may quote to you an estimated yield when you purchase a bond. This yield may be calculated by IAM on either A) a yield to maturity date basis; or B) a yield to early redemption date basis. Some bond issuances include multiple early redemption dates and prices, therefore the realised yield earned by you on the bond may differ from the yield estimated or quoted by IAM at the time of your purchase.