SMSF solutions

Make fixed income the foundation of your SMSF strategy

Whether you are retired or still working, fixed income can play an important role to preserve your wealth and generate a steady income stream. Through investing in bonds and term deposits, you can enjoy a reliable income and true diversification from your equity and property investments.

Why fixed income?

Fixed income provides investors with a reliable income stream, capital stability and investment choice based on your risk appetite.

Principally about conserving capital whilst providing regular income, a diversified fixed income portfolio of corporate bonds and term deposits can provide investors with a solid portfolio foundation in line with your portfolio strategy.

Managing risk and reward

Risk Vs. Return Graph

A diverse fixed income portfolio can be tailored based upon your individual risk and reward appetite. A corporate bond, bank term deposit or mixed allocation can help you achieve your portfolio’s overall risk-reward balance. 

DirectBonds Service

FIIG is Australia's largest bond specialist, committed to opening bond markets for all investors by providing access to corporate bond portfolios from as little as $10,000. This market-leading initiative allows more investors to enjoy the benefits of a fixed income foundation for the construction of a diverse and resistant SMSF portfolio.  

Our DirectBonds Service enables direct ownership of bonds so choice and control remains where it should be - with you.

The FIIG Client First Approach

At FIIG, we work hard to achieve the best fixed income outcomes for our clients. Our Client First Approach delivers extensive research coverage, expert knowledge of fixed income markets and priority access to the best opportunities in the market. Whether we're working with private individuals, families or institutional clients, we've structured our business and our approach to put clients first.

Frequently asked questions

Companies or governments issues bonds as a way of raising funds. They borrow funds from investors in the form of bonds, making it a form of debt. When you purchase a bond, the issuer is legally obliged to pay you regular interest and at the bond’s maturity, pay back the face value of the bond to you.

Bonds are issued by many companies – from well known companies such as BHP, Qantas and Commonwealth Bank to smaller companies such as G8 Education and Praeco.

Over 300 bonds are available via FIIG’s DirectBonds Service. Wholesale qualified investors can also invest in foreign currency denominated bonds, including USD, GBP and Euro bonds.

When you purchase a bond, the issuer is legally obliged to pay you regular interest (referred to as coupons) and at the bond’s maturity, the face value of the bond (which is the price the bond was issued at – usually $100) must be paid back to you.

There are two main differences between corporate bonds and term deposits. Firstly, term deposits are only issued by banks and other financial institutions , whilst corporate bonds are issued by a more diverse range of companies across different sectors including retail, technology, transport and infrastructure. Secondly, term deposits must be held until they mature, whilst corporate bonds can be bought and sold when it suits you any time prior to maturity.

When you purchase shares in a company, you become a part owner of that company and there’s no certainty of income via dividends. With corporate bonds, you lend money to the company that issues the bond and it is legally required to pay you regular interest and repay the face value of the bond when the bond matures. This means that investing in a company’s bond is a lower risk than owning its equity or shares.

Another major difference between shares and bonds is that shares are generally traded on an open exchange such as the ASX, whereas the majority of corporate bonds are traded on the Over the Counter market.

For more information

The Benefits of Bonds eBook

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Talk to an expert

George Cupac -  State Manager Markets - Victoria Kate Hurse - ‎NFP cash management and investment specialist John Sheridan - Head of Private Clients NSW/ACT Mark Connors - State Manager Mark Mccudden - Director –NSW, ACT, QLD  Adviser Services  

Phone  Call us on 1800 01 01 81

...with offices based in Sydney, Brisbane, Melbourne and Perth