Fixed Income Investments

At Australasia Financial Services, we provide a variety of cash, credit, and fixed income solutions, specializing in high-quality debt investments.

Our strategy is highly active, involving frequent buying and selling of credit and fixed income securities. We invest broadly, spanning various industries, maturity periods, and levels within the capital structure.

Our goal is to construct portfolios that are both well-diversified and highly liquid, ensuring they perform robustly through different market cycles. Our focus is on income generation and loss prevention, aiming for stable returns for our portfolios.

While certain fixed income securities may trend similarly to share markets, our cautious and risk-aware approach is designed to maintain the defensive qualities typically expected from fixed income investments. This includes high capital security, steady income, liquidity, and a low correlation with the share market.

Investing in Australian bank-issued bonds listed on the Australian Securities Exchange (ASX) can offer several benefits, which include:

Stability and Security

Australian banks are known for their stability and robust regulatory framework, making their bonds a relatively secure investment.

Potential Tax Advantages

Some Australian bank-issued bonds might offer tax benefits, such as lower tax on interest income or favorable treatment for non-residents.

Inflation Protection

Certain types of bonds, like inflation-linked bonds, can offer protection against inflation, preserving the purchasing power of the invested capital.

Regular Income Stream

Bonds typically provide a regular and predictable income stream through fixed interest payments, appealing to investors seeking steady returns.

Liquidity

Being listed on the ASX, these bonds generally offer better liquidity compared to unlisted bonds, allowing investors to buy and sell them more easily

Range of Maturities

These bonds come in a range of maturities, from short to long-term, allowing investors to choose based on their investment horizon and cash ﬂow needs.

Diversification

Including bonds in an investment portfolio can help diversify risks, especially when combined with other asset classes like stocks.

Credit Ratings

Many Australian bank-issued bonds have high credit ratings, indicating lower credit risk and adding a layer of security for investors.

Access to Big Four Banks

Investing in bonds issued by Australia’s ‘Big Four’ banks (Commonwealth Bank, Westpac, ANZ, and NAB) can provide exposure to some of the largest and most stable financial institutions in the country.