With market interest rates falling rapidly over the month – the Australian 10 year bond fell from 1.36% to 1.18% over the course of July – holding existing longer dated positions (in line with the consistent strategy held since inception) was the most advantageous position to be in.
Australian bonds have returned approximately 2% p.a. more than bank deposits, and are a lot less volatile than shares, with only a slightly lower return.
Take a look at how Jon Sheridan's $1m portfolio performed over FY19
Property often makes for a good bond investment, as there are usually hard assets and a regular cashflow backing the borrowing, extended through issuing a bond.
A bond is like any other investment that can trade after it is first issued – the market price can move up and down
Find out how FIIG's three model portfolios have been performing.
Find out how Jon Sheridan's portfolio has been performing since February 2019
Take a look at the history of the high yield bond market since FIIG has pioneered it in 2012.
One of the many benefits of being a client of FIIG is access to new primary bond issues
Find out how Jon Sheridan's portfolio has been performing since the start of the year