TermPlus
TermPlus is not a bank. We deliver monthly income via unparalleled access to a highly diversified portfolio of global private credit, primarily in the US, and Europe.
TermPlus is a unique investment platform that empowers everyday Australians to unlock the potential of their savings.
We offer a range of online term accounts that provide stable, monthly income payments.
Our investment strategy focuses on a diversified portfolio of global private credit funds managed by experienced professionals. With multiple layers of protection, including a dedicated support account, TermPlus aims to deliver reliable returns and peace of mind. By choosing TermPlus, you're not just investing; you're securing your financial future.
Target Rates are variable over the course of the Term, linked to the RBA cash rate plus a fixed spread.
Click here to view our latest Term Lengths and Target Rates.
* The above quoted Target Rates are those current as at today and are merely objectives, which may change during the course of the Term. Please refer to the Product Disclosure Statement (‘PDS’) for TermPlus for an explanation of the Target Rates and other terms used on this website. Any revised Target Rate for each Term will be detailed on the website: www.termplus.com.au. There is a risk that TermPlus may not be successful in achieving the Target Rates. The Target Rates are calculated off the RBA Cash Rate plus a fixed percentage spread. The RBA Cash Rate can change from time to time. An investment in a Term Account is not a bank deposit or a term deposit with a bank.
The following are the key potential financial benefits of Term Accounts:
Stable and consistent monthly Income
TermPlus seeks to provide stable and consistent monthly Income payments to Account Holders across all market conditions with the distinct built-in layers of protection of Priority Income Entitlement and Income Stabilisation, as described in Section 2.3.2 of the PDS.
Floating rate targets that move with the RBA Rate
TermPlus offers floating rate investment returns, as Target Rates are linked to the RBA Rate (which can vary throughout a Term), as described in Section 2.3.1 of the PDS.
By linking Target Rates to the RBA Rate, TermPlus aims to deliver a consistent spread over the RBA for the duration of a Term.
Focus on capital preservation
Term Accounts benefit from a defensive investment strategy focused on preserving Account Holder capital and minimising volatility:
- Proceeds from Account Holders are ultimately invested in a diversified global private credit portfolio of funds managed by highly rated Underlying Managers (refer Section 3.3.6.1 of the PDS) in North America, Western Europe, and potentially in Australia who lend to companies via a diverse range of lending strategies.
- The underlying loans are significantly diversified by lending strategy, liquidity characteristics, geography, borrower, industry sector, collateral type, structure, credit quality and vintage.
TermPlus further protects a portion of an Account Holder’s Invested Amount through the Savings Support feature described in Section 2.3.2 of the PDS.
Multiple terms to meet Account Holders’ unique requirements
TermPlus offers a variety of Terms that aim to provide Account Holders with options to meet their time and income requirements.
Choose how you earn, monthly
Account Holders are able to make monthly adjustments to how they would like to receive their Income payments. Choosing to have Income either paid to their bank accounts, or reinvested into their Term Account balances to accrue compounded monthly returns.
Experienced managers with strong performance track records
TermPlus is only invested in funds managed by Underlying Managers that have been recommended by Mercer. For more information about Mercer, see Section 4.2 of the PDS.
All Underlying Managers have deep expertise and proven track records in originating, structuring, and managing private credit. Underlying Managers could include entities associated with Pengana Credit.
Compound returns
If you elect to reinvest Income payments, Income will be added to the balance of your Term Account, and benefit from each subsequent month’s accrual.
TermPlus is a managed investment scheme. The Responsible Entity of TermPlus is Pengana Capital Limited. The Responsible Entity has appointed Pengana Credit Pty Ltd, a corporate authorised representative of Pengana Capital Limited, as the Investment Manager of TermPlus.
TermPlus aims to achieve its Investment Objective through economic exposure to global private credit assets. This is achieved via investments in Profit Participating Notes (‘PPNs’) in the TermPlus (Hedged) Class (the ‘Feeder Class’) issued by the Pengana Private Credit Feeder Fund (‘Feeder Fund’). A PPN is a debt security which provides economic exposure to the underlying investments of the Feeder Class.
The Feeder Class invests in non-voting participating shares in the Pengana Private Credit Master Fund (‘Master Fund’). The Master Fund in turn invests predominantly in global private credit funds managed by Underlying Managers. Returns from the Feeder Fund flow to TermPlus via the PPNs, which in turn are distributed to Investors in TermPlus. For more details on PPNs and the PPN Agreement, see Section 4.8.3 of the PDS.
The assets of TermPlus are held by the Custodian. Further information on TermPlus’ service providers is set out in Section 4 of the PDS.
Account Holders are provided with a choice of investment timeframes which comprise 1 (one) year, 2 (two) year, and 5 (five) year Terms. Each Term has a specific Target Rate, calculated by reference to the RBA Rate plus a fixed Added Rate, expressed on an annualised basis and net of all fees and costs.
TermPlus invests via an offshore fund structure into the Master Fund. The Master Fund has four share classes (each a ‘Master Class’). Each Master Class represents a sub-portfolio of cash, liquid credit investments and private credit investments that share common risk, return and other key attributes, as described below. Pengana Credit seeks to purchase what it believes to be the appropriate amount of shares in the Master Classes to create a private credit portfolio designed to achieve the Target Rates while minimising risk. An appropriate amount of cash is held for the Term Accounts and the private credit portfolio is highly diversified to ensure consistent performance.
- Enhanced Cash Class – the objective of the Enhanced Cash Class is to preserve capital and achieve a return, principally paid out by way of income. This Master Class invests in fixed income securities or funds with at least annual and at best one day liquidity, senior security, and historically low volatility.
- Income Class – the objective of the Income Class is to provide exposure to a core portfolio of private credit investments in Underlying Funds managed by private credit managers to generate attractive risk adjusted returns, with a majority of the return paid out as income. This Master Class provides investment exposure principally in Direct Lending strategies that generate contractual debt interest payments, with high diversification
and strong security requirements and leverage exposure is targeted to be less than 1.5x the net asset value of this Master Class. - Balanced Class – The objective of the Balanced Class is to generate attractive long term risk adjusted returns. The Master Class invests in funds that employ multiple strategies (including Direct Lending, Structured Credit, Speciality Finance, Real Asset Lending and Credit Opportunities) to provide exposure to a core portfolio of private credit investments in Underlying Funds managed by private credit managers to generate returns from contractual debt interest payments, but which may also include equity components and structural leverage. Overall leverage exposure is targeted to be less than 1.25x the net asset value of this Master Class, with the Underlying Assets well diversified and with strong security.
- Total Return Class –The objective of the Total Return Class is to provide exposure to a value-add portfolio of private credit investments through investments in Underlying Funds managed by private credit fund managers to generate attractive long-term returns. The Master Class invests in funds that receive a combination of contractual debt interest payments and equity upside. These funds typically employ Credit Opportunities strategies, have lower diversification and security requirements, and generally do not use leverage.
Pengana Credit believes that the global private credit asset class offers attractive returns, resilience in different market and economic conditions and diversification by targeting different parts of the capital structure and market segments. Pengana Credit employs a diversified approach, anchoring portfolios with direct lending for durable yield and persistent spread premium, while adding structured credit and speciality finance to diversify the risk/return drivers.
In executing the Investment Strategy, Pengana Credit follows an investment process that draws upon internal and external third-party expertise. In summary, Pengana Credit:
- seeks to provide TermPlus with exposure to private credit assets that aim to provide stable income, a degree of capital security and attractive total returns;
- achieves this exposure principally through investing in a diversified range of funds managed by Underlying Managers that invest in private credit assets;
- aims to develop a portfolio of high-quality funds managed by Underlying Managers with complementary strategies that provide attractive returns with diversification from individual fund, manager, and strategy risks;
- may also provide TermPlus with exposure to more liquid debt strategies and cash. This further complements the reduction of risk through diversification as well as maintaining operational liquidity and flexibility; and
- invests principally in European and North American funds. It may allocate to Australian funds, however, the private credit markets in Australia are smaller and less developed than in the US and Europe and the allocation is therefore expected to be lower.
The implementation of the Investment Strategy is ongoing and includes making new investments in Underlying Funds, divesting from existing Underlying Funds, managing the allocations between different assets, monitoring performance and risks, and any required hedging of currency exposure.
Pengana Credit seeks to invest in a diversified range of global private credit investments with strong risk adjusted return characteristics. These Underlying Assets are typically accessed indirectly through investments in private credit funds. The private credit funds are managed by specialist Underlying Managers that have extensive experience and resources.
All Underlying Managers and their funds are required to be approved by Mercer, following Mercer’s investment and operational due diligence processes which are described in this Section 3.3 of the PDS. Underlying Managers may have the flexibility to invest in multiple private credit investment strategies, which allows them to develop more resilient “all weather” portfolios that are expected to perform well in different economic and market environments. Access to Underlying Managers is intended to provide Investors with exposure to investment opportunities that are not readily available to Australian investors.
A lot goes into creating term-based accounts that liberate the way you earn, with a Target Rate that aims high. To unlock the big-money-advantage for all Aussies, TermPlus taps into the dynamic and diverse world of Global Private Credit, for Target Returns that seek to deliver a set amount above the cash rate.
TermPlus is powered by Pengana Capital Group, and our alliance with Mercer. Using their infrastructure and reach, we access Pengana’s best-of-breed private global private credit Master Trust, for diverse returns you can count on We bring this to you effortlessly, carrying you closer to your financial goals, as your money starts making money.
What is global private credit?
‘Lending’ is one of the world’s oldest asset classes.
Lending, in the form of Global Private Credit, is one of the world’s fastest–growing asset classes.
When we talk about global private credit, we are generally referring to non-bank direct lending to medium-sized companies (with annual earnings up to US$250m). These loans are :
- contractual
- individually customised,
- senior in the capital structure (meaning they rank above other debt or equity)
- have security over physical or financial assets, and
- are held to maturity or refinanced.
For a detailed overview of global private credit, please visit https://termplus.com.au/global-private-credit/
TermPlus returns are generated from a highly diversified portfolio of over 2,000 global private credit investments.
What are the benefits of global private credit?
Global private credit can offer attractive risk-adjusted returns compared to traditional fixed income. Our Master portfolio employs different kinds of private credit to combine the stable yields from direct lending, with other forms of private credit such as structured credit and specialty finance, which provide diversification and varied investment strategies.
Managed by Pengana Credit, TermPlus offers access to a highly diversified, multi-manager, multi-strategy, global private credit portfolio, designed to deliver both higher yields and a stable capital base.
This portfolio forms the basis for TermPlus Accounts.
What features does TermPlus offer?
In addition, TermPlus offers mechanisms designed to offer an added layer of Income and Savings support to Account Holders in order to further mitigate the risk that the value of your investment may fall. We invest in a globally diversified portfolio managed by highly rated private credit fund managers, prioritising capital-efficient strategies and asset-sourcing advantages. Pengana Capital Limited acts as the Responsible Entity, overseeing TermPlus with Mercer Consulting as the Investment Consultant.
Russel Pillemer co-founded Pengana in 2003. He has been the company’s Chief Executive Officer since inception. Prior to founding Pengana, Russel worked in the Investment Banking division of Goldman Sachs in New York where he specialised in providing advice to funds management businesses. Before moving to New York, he was responsible for leading Goldman Sachs’ Australian Financial Institutions Group. Russel was previously Chairman of Centric Wealth Group and a principal of Turnbull Pillemer Capital. He is a member of the Institute of Chartered Accountants in Australia and has a Bachelor of Commerce (Hons) from the University of New South Wales.
Nehemiah Richardson is an experienced executive with over 20 years of financial services experience at leading international and Australian institutions including Credit Suisse, JPMorgan, Merrill Lynch (now BofA), National Australia Bank and Latitude Financial Services. Nehemiah has advised large financial institutions and corporations on significant M&A and financing transactions, led teams that have delivered transformative improvements in strategic direction, reputation, risk management, financial performance and culture across a diversity of generalist and specialist leadership roles in the financial services industry.
Dean Weinbren is an Executive Director, with oversight of Marketing, Brand, Public Relations, Customer Experience and Investor Relations across all products in the Pengana Group. Prior to joining Pengana, Dean’s previous experience includes the set-up and management of one of Australia’s largest non-aligned insurance advice firms, as well as having founded and run both digital and experiential media agencies for major corporate sponsors. Dean holds a BSocSci in Organisational Psychology and Industrial Sociology from the University of Cape Town, South Africa, as well as an Advanced Diploma in Financial Planning.
Keith is Chief Operating Officer at Pengana responsible for all fund operations, client service, compliance and enterprise technology. Prior to joining Pengana in 2015, Keith was a General Manager at Perpetual where he led operational and technology teams supporting the funds management and private clients’ businesses. Before joining Perpetual in 2001, Keith served in operational leadership roles in the Metropolitan Police Service in London. Keith has significant experience in operational leadership, risk management, project delivery, and organisational change. Keith has a BA(Hons) in Business Studies from the Bristol Business School and is Fellow of FINSIA.
Scott Wilkinson is Head of Private Debt APAC at Mercer based in Sydney. Mr. Wilkinson joined Pavilion Alternatives Group in London during 2009, which was acquired by Mercer in 2018. Mr. Wilkinson is responsible for the oversight of all APAC private debt investments, along with leading portfolio construction and planning efforts for Mercer’s global discretionary private debt accounts. He is a member of the Ratings Review Committee and Private Debt Investment Committee. During his tenure at Pavilion / Mercer, Mr. Wilkinson has also led private equity fund investments across Europe, in addition to client and portfolio management in the region.
As Chief Investment Officer, Nick is responsible for manager monitoring, performance analysis and risk management across Pengana’s investment strategies. He also chairs the Risk Management Committee and is an Executive Director of Pengana Capital. Nick has more than 20 years’ experience in the actuarial and investment industries in the UK and Australia. Prior to his current role, Nick was Head of Investment Research within Aon’s Investment Consulting Practice in Sydney. Nick is a qualified Actuary and CFA Charterholder. He was educated in England and holds a Law and Economics degree from the University of Durham.
Adam Rapeport is the Portfolio Manager for the Pengana Global Private Credit Trust, responsible for prudently managing the liquidity and FX exposures of the Trust. Adam has more than 25 years’ experience in the financial services industry in South Africa, the UK and Australia. Prior to his current role, Adam was Head of Market Risk for Sumitomo Mitusui Sydney, Bank of Queensland and Investec Bank Australia. Adam holds a Bachelor of Economic Science and is a CFA Charterholder.
You have two choices on how to receive your monthly Income.
1. Reinvest: Add it back into your account balance to earn additional Income. Reinvested Income will receive the same Target Rate, Maturity Date and layers of Protections as your Opening Balance.
2. Pay to bank: We pay it to your linked bank account every month.
Simply make your election in your account dashboard.
You can change your election at any time during the month. Just make sure you make your election at least 5 business days before month-end for your preference to be updated, otherwise, it will apply to the one after that.
To keep Target Rates relevant, our accounts rates aim to deliver a set amount above the Reserve Bank of Australia’s Official Cash Rate (“Cash Rate”). Each Term has a specific Income objective calculated by reference to the Cash Rate, plus a fixed spread. If the Cash Rate changes, our Target Rates change in line with the Cash Rate.
Target Rates are not guaranteed, are not forecasts, may not be achieved . However, private credit loans are contractual by nature, and contain interest and principal repayment terms, as well as lender protections which the borrower must meet. This means the lender has predictable interest payments and protections that work to minimise any potential loss. As the private credit loans underpinning the TermPlus portfolio are contractual in nature, there is a built-in level of certainty around future cashflows, which can also include characteristics such as floating interest rates and capital security.
Your Income comes first.
To provide further reliability of Income, we invest our own money alongside Account Holders, in what we call a Support Account.
The Support Account seeks to provide reliable Income via two layers of protection.
1. Priority Income Entitlement - The Support Account, just like customer accounts, earns income on its invested balance. Because we’re committed to supporting your saving journey, TermPlus Customers have priority over this income if ever it’s needed to support target rates. Think of it as an extra income pool that works to support Target Rates and returns for your account in the event of an earnings deficit.
2. Income Stabilisation - In the event that the value of your Term Account balance decreases for any given month, we will continue to calculate your Target Rate Income on the total Invested Amount (including any reinvestments of past Income).
The combination of the structural characteristics of the underlying TermPlus assets, and the TermPlus layers of account protections, are core to our customer first’ approach to delivering exceptional Term Accounts.
This customer-first approach means more stable and reliable Income.
The monthly payment of accrued Income is not guaranteed and is subject to TermPlus generating sufficient return.
TermPlus delivers unique access to a diversified portfolio offering by robust characteristics (as outlined below), and has been designed with 3 distinct built-in layers of account protection to attract investors.
The TermPlus Target Market Determinations note an indicative risk level of Low (that is, over any 20 year period, the Issuer considers that TermPlus is likely to experience up to 1 year of negative annual returns). Private credit (the underlying asset class held by TermPlus accounts) benefits from lender protections, such as contractual limitations and covenants on the borrower, payment priority to the lender, and valuation methodologies that can look through shorter-term market volatility. These enhanced protections have historically resulted in lower default rates and higher recovery rates for private credit assets relative to other credit alternatives. It is however important to understand that the value of your investment may go down. You should consider all the risks involved and whether they are appropriate for your objectives and financial circumstances. The Income paid and maintenance of your initial investment will depend on the performance of the investments made by TermPlus and no guarantees can be made regarding either. Past performance is not a reliable indicator of future performance. We have sought to mitigate these risks further, through the Priority Income, Income Stabilisation, and Savings Support mechanisms. A complete summary of all possible risks and protection mechanisms is available in the TermPlus PDS.
No, an investment in a Term Account in TermPlus is not a bank deposit or a term deposit with a bank.
Easy. Quick. Seamless. Your TermPlus Account has its own easy-to-use account dashboard from where you can manage and track your applications, get an overview of your accounts, track your earnings and access tax statements etc.
The Target Rate is expressed on an annualised basis, net of any fees and costs.
The underlying master portfolio of global investments that is used to achieve the Target Rates paid to TermPlus accounts pays fees to underlying fund managers. These fees may impact the Income paid by TermPlus.
For a breakdown of fees and costs please refer to the PDS.
Your Income payments are based on the starting balance of your Account. You have the option of adding Income payments to your account balance, which means that they will accrue additional Income in following months. If you would like to add new funds to earn Income, this can be done by opening another Term Account using the ‘add account’ button on your dashboard. As this is a ‘term based’ account, funds cannot be withdrawn until the Term is over.
You have 2 choices as to what is to occur at the end of the Term.
- Rollover into a new Term
- Withdraw your balance to be paid back into your bank account, this would include any income reinvested through the course of your term account.
You also have the option to do a partial withdrawal and partial rollover.
End of term elections need to be made by the due date that is noted on your account in the customer dashboard.
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The issuer of this product is identified at the top of this page. The PDS and target market determination for the product are available in the Documents section of this listing. Prospective investors should consider the PDS before deciding to acquire the product. This product listing was vetted by and approved by the product issuer identified above before publishing. Investment Markets (Aust) Pty Ltd AFSL 527875 (IM) is not the issuer of the product.
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