Education

Part of FIIG's charter is to educate investors about the benefits of the fixed income asset class. Australian investor's portfolios display a heavy bias towards equities (shares) when compared to American and European investors (see graph below). Part of that bias reflects the demand for high returns and a good understanding of the share market.

Portfolios with an excessive allocation to equities are high risk and can be very volatile. A fixed income allocation can act to smooth overall portfolio returns. Further, fixed income securities offer a range of risk/ reward characteristics but in almost every instance, are lower risk than shares as they sit higher in the capital structure. Investors can still achieve good returns with the added benefit of known cash flows and capital stability.

FIIG aims to address the current equities/ fixed income imbalance through education via our weekly newsletter, "The Wire", our 160 page guide book An Australian Guide to Fixed Income, our online educational course as well as our extensive fixed income dictionary and seminars that we hold across Australia.