Is your portfolio overweight cash or shares? In order to diversify and protect your capital in volatile markets – bonds, which sit neatly between the two, may suit you. We are pleased to announce guest presenter, Liz Moran, editor of The WIRE and Australian columnist, will be presenting our Introduction to Fixed Income in Brisbane, Sydney and Melbourne at the end of this month. Liz will explain the basics and benefits, along with some interesting anecdotes
Bonds are sometimes called ‘boring’, but that’s why they’re attractive. If you are in or near retirement, certainty of income and less volatility should be appealing.
Bonds are, if you like, are ‘sleep at night investments’.
Your shares may keep you tossing and turning while your cash holdings may do the same with current low returns.
It is possible to earn returns of around 4 to 7 per cent per annum with corporate bonds*. Also providing the necessary diversification your portfolio needs especially, in volatile markets as we are experiencing today. Your investments as they stand could be overweight to riskier assets and underweight to defensive assets.
In fact, the latest ATO statistics revealed Australian self-managed super funds (SMSFs) are massively under-allocated to defensive assets despite high cash and term deposit holdings. As at 30 June, the cash held by SMSFs had increased by 1.2% to $157.7bn while debt securities also increased by the same percentage to just $7bn, for the quarter.
Given the state of the economy, these statistics seems flawed. But they are accurate. Even though cash rates are at historic lows and when inflation** is factored in, term deposits are essentially providing no return – bonds are still being largely ‘ignored’.
Australian SMSFs are falling short of the global average allocation to bills and bonds, the worldwide average clocks in at around 52% while domestic SMSFs allocate just 1.17%.
Liz’s seminar will unpack how you can earn higher returns than cash with bonds - a more secure investment than shares. She will compare bonds, cash and shares considering the risks and benefits to your portfolio.
If you are new to direct bond investing or wish to brush up on your knowledge please register. Feel free to bring a spouse or friend, the sessions are complimentary.
By attending, you will also have the opportunity at the close of the presentation to ask Liz or members of our sales team any further questions you may have over light refreshments.
Presenter
Liz Moran, Director of Education and Fixed Income Research at FIIG. She is a long time and regular contributor to The Australian newspaper and numerous other media sources. Liz is seen as one of the leading fixed income experts in Australia and author of our ‘Australian Guide to Fixed Income’. Liz will host the presentation and will be available after the session to answer any questions. You can view articles published by Liz here.
Details
Brisbane
Date: Thursday 22th October, 2015
Time: 10.30am – 12.30pm followed by light refreshments
Venue: FIIG Brisbane Office
Level 31, 1 Eagle Street
Brisbane QLD
Register online
Melbourne
Date: Wednesday 28th October, 2015
Time: 10.30am – 12.30pm followed by light refreshments
Venue: FIIG Melbourne Office
Level 35, 120 Collins Street
Melbourne VIC
Register online
Sydney
Date: Thursday 29th October, 2015
Time: 10.30am – 12.30pm followed by light refreshments
Venue: FIIG Sydney Office
Level 20, 126 Phillip Street
Sydney NSW
Register online
We run regular events in most capital cities as well as webinars where you can learn more online if you aren't able to attend in person.
Our seminars page has a full list of dates where you can find a date and location that is convenient to you.
*It is important to note that past performance is not an indication of future performance and like all investing it is your decision and FIIG is licensed to provide general advice only. Hence, your personal circumstances have not been considered.
**Assuming the RBA’s target inflation rate of 2.5%.