5 Best Fixed Income Securities in Australia (2025) – Smart Investment Picks
Fixed income securities offer stability, income and diversification so they are
essential for a balanced portfolio. This content explores Australian and global bond
ETFs, their structures, management styles and suitability for different investment
strategies.
Key ETFs covered include PIMCO Global Bond Active ETF, Janus Henderson Australian Fixed Interest Active ETF and VanEck Floating Rate ETF. Each section details fund objectives, portfolio composition, liquidity and early performance trends.
Potential risks such as interest rate fluctuations, credit exposure and currency impacts are discussed. The content looks at income-generating opportunities, risk management and portfolio diversification within the fixed income market.
PIMCO Global Bond Active ETF (PGBF)
Fixed income investments are a must have in a diversified portfolio, they offer stability and predictable returns. For Australian investors looking at global fixed income securities the PIMCO Global Bond Active ETF (PGBF) is a great option.
Launched in February 2025 this ETF gives access to a broad spread of government and corporate bonds, focuses on income generation and capital preservation.
A Closer Look at PIMCO Global Bond Active ETF (PGBF)
PGBF is a new ETF listed on Cboe Australia, actively managed bond fund. Managed by PIMCO, a global investment firm, the ETF is designed to optimise fixed income returns through a diversified selection of global bonds. The fund mainly consists of government bonds, high grade corporate bonds and mortgage backed securities.
Key features of PGBF:
Actively managed portfolio: Unlike traditional bond index funds PGBF is actively managed so it can adapt to market changes.
Diversified global exposure: Investing in bonds from various countries reduces country specific risks.
High liquidity and accessibility: Since it is listed on Cboe Australia you can buy and sell units during market hours.
Steady income generation: The ETF is designed to generate consistent returns through high quality fixed income securities.
Initial Investment and Net Asset Value (NAV) Details
As of February 5, 2025 PGBF was launched with the following details:
Total Units Issued: 15,000
Initial Net Asset Value (NAV) per Unit: AUD 20.00
Total Fund Size: AUD 300,000Total NAV per Unit: AUD 20.00
These numbers show that at launch each unit was $20.00, so if you got in at that time this is how you would be tracking.
Performance Review: PGBF’s Early Days
By February 22, 2025 two weeks after launch PGBF had a small NAV increase:
NAV per Unit: $20.05
Not a big movement but the ETF is showing growth. Fixed income investments don’t tend to move much in the short term.
Investment Scenario: A $100,000 Investment
If you invested a big chunk into PGBF a $100,000 would have looked like this:
February 5, 2025: Invested $100,000
Unit Purchase Price: $20.00
Units Bought: 5,000
By February 22, 2025 with NAV at $20.05 the investment would be worth:
New Investment Value: $100,250
Gain: $250
0.25% in two weeks is what fixed income is all about, slow and steady. This doesn’t include interest payments or yield distributions which would add to your overall return.
Why Invest in PGBF in 2025
If you’re looking at fixed income options consider PGBF for:
Global Bond Market Exposure
Investing only in Australian bonds limits your opportunities and increases your domestic risk. PGBF gives you international government and corporate bonds exposure to diversify your risk.
Active Portfolio Management
Unlike passive bond ETFs PGBF is actively managed by PIMCO’s team so the portfolio can be adjusted as market conditions change. This should give you better returns than a static bond index fund.
Stability in Uncertainty
Fixed income is a safety net against stock market volatility. With uncertainty still around a low volatility ETF like PGBF is a hedge in a diversified portfolio.
Easy to Trade and Accessible
No liquidity issues with PGBF, you can buy and sell on Cboe Australia during market hours.
Risks to Consider
While PGBF has its attractions, here are the potential risks:
Interest Rate Risk: Bond prices fall when interest rates rise. PGBF’s active management helps to mitigate this risk, but interest rates are still a key factor.
Currency Risk: PGBF invests in international bonds so currency fluctuations can impact returns. But PIMCO’s hedging helps to reduce this risk.
Credit Risk: While PGBF focuses on high quality bonds, there’s always a risk of issuer default in the corporate bond segment.
Verdict: Is PGBF a Good Investment in 2025?
The PIMCO Global Bond Active ETF (PGBF) is a solid fixed income solution for Australian investors looking for stability, income and global diversification. Active management means it can adapt to the market and international exposure reduces single economy risk.
For conservative investors or those looking to add a low risk income generating asset to their portfolio, PGBF is a good option. But you need to consider your risk tolerance, financial goals and investment time frame before committing.
Janus Henderson Australian Fixed Interest Active ETF (JFIX)
Fixed income is an essential part of a diversified portfolio, providing stability and predictable returns. Australian investors looking at local bonds may like the Janus Henderson Australian Fixed Interest Active ETF (JFIX).
Launched in February 2025, JFIX gives exposure to various Australian government and corporate bonds, focusing on preserving capital and generating income. Its actively managed strategy adapts to changing economic conditions.
Breaking down the Janus Henderson Australian Fixed Interest Active ETF (JFIX)
JFIX is an actively managed ETF on Cboe Australia that aims to maximise returns through strategic portfolio adjustments. Managed by Janus Henderson, it includes government bonds, high quality corporate debt and mortgage backed securities.
Key Features of JFIX:
Strategic portfolio adjustments: Unlike passive ETFs, JFIX adjusts its holdings in response to market changes.
Australia focused: By being only Australian bonds, the ETF reduces currency risk.
Seamless trading: Listed on Cboe Australia, JFIX allows you to get in and out without liquidity concerns.
Regular income: Designed to generate income, the ETF is for those who want predictable returns.
Funds Launch and Initial Prices
As of 5th February 2025, JFIX started trading with the following numbers:
Total Units On Issue: 20,000
Initial NAV per Unit: AUD 25.00
Initial Fund Size: AUD 500,000
These launch numbers give you an idea of the ETF’s value and a benchmark to measure future performance.
Early Trading and Performance
In the first few weeks of trading, JFIX has moved up slightly:
NAV per Unit (as of 22nd February 2025): AUD 25.10
The small movement is a reflection of the stable nature of fixed income which is about gradual growth not sharp movements.
Investment Simulation: The Outcome of a $100,000 Allocation
An investor allocating $100,000 to JFIX at launch would see:
Buy Date: February 5, 2025
Buy Price per Unit: AUD 25.00
Units Bought: 4,000
After the price adjustment to AUD 25.10 on February 22, 2025:
New Investment Value: AUD 100,400
Profit: AUD 400
0.4% in a short period is what you’d expect from a fixed income ETF where gradual value growth and interest distributions drive long term returns.
Why JFIX in 2025?
If you’re looking at fixed income, JFIX has many benefits:
Only Australian Fixed Income
JFIX is exclusive to Australian bonds so you get stability without the risks of global economic fluctuations and foreign market volatility.
Expert Management for better returns
Unlike passive bond funds, JFIX uses active strategies so we can adjust the portfolio to move with market trends and interest rate changes.
Protection from equity market crashes
Fixed income investments are a safety net during stock market downturns. JFIX focuses on high quality bonds to add stability in uncertain times.
Seamless trading with liquidity
Traditional bonds are a hassle to invest in, but JFIX makes it easy to buy or sell units during market hours.
Risks and Considerations
While JFIX has many benefits, there are risks:
Interest Rate Risk: Rising interest rates will lower bond prices so will impact the ETF’s value.
Issuer Credit Risk: Corporate bonds are high quality but still carry default risk that needs to be factored into your investment decision.
Inflation Risk: Persistent inflation will eat into real returns so you need to monitor broader economic conditions.
So Should You Invest in JFIX?
JFIX is a solid option for investors who want income and asset protection. The active management helps us respond and the Australian bond allocation minimises exposure to international market swings and currency volatility.
For risk averse investors or those looking to strengthen their portfolio JFIX is an option. But you need to assess your personal risk tolerance and investment goals before investing.
VanEck Floating Rate ETF (FLOT)
Investments with adjustable yields give you a strong defense against rising borrowing costs and enhance financial resilience. Australian investors looking for exposure to such instruments may want to consider the VanEck Floating Rate ETF (FLOT).
Launched in February 2025, FLOT gives you access to a broad range of Australian floating rate notes (FRNs) with a focus on asset protection and steady income. Its hands-on management allows it to respond to changing economic conditions.
FLOT breakdown
FLOT is an actively managed ETF on Cboe Australia that aims to generate returns through a selected mix of high quality floating rate instruments. Managed by VanEck its portfolio includes sovereign, corporate and financial sector FRNs.
Notable Features of FLOT:
Dynamic Allocation Strategy: Unlike passive funds, FLOT constantly adjusts its holdings to take advantage of interest rate movements.
Reduced Rate Sensitivity: By focusing on FRNs, the ETF changes coupon payments in line with market conditions.
Efficient Market Access: Listed on Cboe, FLOT provides smooth trading with strong liquidity support.
Predictable Income Stream: Designed for yield seekers, FLOT delivers steady income tied to benchmark rates.
Fund Launch Stats and Initial Price
February 5, 2025 FLOT launched with:
Total Units Issued: 25,000
Opening NAV per Unit: AUD 20.00
Initial Fund Value: AUD 500,000
These numbers set a benchmark for future performance and market movement.
Early Market Moves and Performance
In the first few weeks FLOT traded steady:
Revised NAV per Unit (February 22, 2025): AUD 20.15
This small gain shows floating rate securities are all about wealth preservation and income generation over capital growth.
$100,000 Investment Simulation
An investor invested $100,000 into FLOT at launch would see:
Initial Investment Details:
Date: February 5, 2025
Starting Price: AUD 20.00
Units: 5,000
Post-Adjustment Valuation:
New Price (February 22, 2025): AUD 20.15
Portfolio Value: AUD 100,750
Gain: AUD 750
0.75% yield is what you’d expect from a floating rate ETF, where small price move and interest accrual add up to decent returns.
Why FLOT is a Good Investment in 2025?
For floating rate investors FLOT has several advantages:
Focused on Floating Rate Securities
FLOT concentrates on top tier floating rate notes, with a strategy that adapts to changing rate environments and reduces duration risk.
Active Management for Better Returns
Unlike static bond ETFs, FLOT actively rebalances to rate projections and credit trends to increase gains.
Protection from Rate Rises
With periodic rate changes, floating instruments in FLOT act as a built-in hedge against rising rates, making it a good choice for those concerned about rate volatility.
Ease of Market Access and Liquidity
Bond holdings can be complicated, FLOT simplifies market participation, giving investors direct access to floating rate securities via a tradable ETF.
Risks and Challenges
While FLOT has its benefits, it also comes with risks:
Credit Risk: Although high quality issuers, corporate FRNs have credit and default risk that can impact returns.
Liquidity Risk: Some floating rate securities may have lower liquidity, affecting pricing and exit strategies.
Variable Yield: Coupon payments change with interest rates, so income is not fixed and may decrease in certain conditions.
Final Verdict: Should You Invest in FLOT?
FLOT is a good option for those who want to protect their capital from rising borrowing costs and get consistent returns. The variable rate structure gives flexibility and the strategic oversight maximises returns in changing markets.
For cautious investors or those looking for a buffer in their bond holdings, FLOT is worth considering. But assessing your financial goals and comfort with uncertainty is important before you allocate.
PIMCO Australian Bond Active ETF (PAUS)
Fixed income is an important part of a well-balanced portfolio, for security and regular income. If you want Australian bond exposure, consider the PIMCO Australian Bond Active ETF (PAUS) a good option.
Launched in February 2025, PAUS provides access to Australian government and corporate bonds, putting capital security and regular cash flow first. Active management means flexibility in navigating changing economic conditions for investors.
What is the PIMCO Australian Bond Active ETF (PAUS)?
PAUS, an actively managed ETF listed on Cboe Australia, aims to generate returns through tactical asset allocation. Managed by PIMCO, it holds government securities, premium corporate debt and mortgage-backed instruments.
Key Features of PAUS:
Adaptive investment approach: PAUS adjusts its asset mix to respond to economic changes, unlike static funds.
Australia-only focus: Allocating only to local bonds minimises currency risk.
Simple trading framework: Listed on Cboe Australia, making it easy for investors to participate.
Regular income stream: For those who want predictable and sustainable returns.
Initial Fund Metrics and Price
As of February 5, 2025, PAUS started with these figures:
Total Units Allocated: 25,000
Initial NAV per Unit: AUD 24.50
Fund Size: AUD 612,500
These are the base numbers to measure future growth and performance.
Early Performance Trends
PAUS started to move up slightly:
NAV per Unit (as of 22 Feb 2025): AUD 24.60
As expected of fixed income investments, this is steady not sharp.
$100,000 Hypothetical Investment
Investing $100,000 in PAUS at launch would look like this:
Investment Date: 5 Feb 2025
Entry Price per Unit: AUD 24.50
Units Invested: 4,081
By 22 Feb 2025 the price moved to AUD 24.60:
New Portfolio Value: $100,390
Net Gain: $390
A 0.39% short term return shows how fixed income ETFs deliver steady growth with consistent income distributions.
Why PAUS in 2025?
If you’re looking at fixed income options, PAUS has some advantages:
Exclusive Access to Australian Bonds
By holding only local bonds, PAUS reduces exposure to international economic swings and currency volatility.
Proactive Management for Better Returns
Unlike index following bond ETFs, PAUS uses expert strategies to adjust holdings and optimise yield based on interest rate movements.
Portfolio Resilience in Uncertain Markets
Fixed income assets offer protection from share market falls, PAUS prioritises high grade bonds for portfolio stability.
Easy Trading and Strong Liquidity
Acquiring individual bonds can be complex, but PAUS makes trading easy through Cboe Australia and market participation seamless.
Risks and Considerations
While PAUS has many benefits, it comes with risks:
Interest Rate Risk: Rising rates can hurt bond prices and fund value.
Credit Risk: Corporate bond holdings, though high quality, have default risk.
Inflation Risk: Persistent inflation can erode real returns, so monitor the economy carefully.
Conclusion: Is PAUS for You?
PAUS is suitable for investors looking for regular income and risk reduction. Its active strategy makes it more adaptable and Australian bonds reduce external uncertainties.
If you want to diversify with fixed income or reduce equity market exposure, PAUS is an opportunity. But review your personal financial goals and risk tolerance before you commit.
PIMCO Global Credit Active ETF (PCRD)
Global credit assets add to portfolio resilience, with income potential and volatility hedging. Australian investors looking to access international bond markets may want to consider the PIMCO Global Credit Active ETF (PCRD).
Launched in February 2025, PCRD gives you access to a broad range of corporate bonds globally, focusing on high credit ratings and consistent income. Its flexible management style adjusts to market changes for optimal performance.
Insights into the PIMCO Global Credit Active ETF (PCRD)
PCRD, a tactically managed fund listed on Cboe Australia, aims to generate returns through flexibility in the portfolio. It holds high quality corporate debt, select emerging market assets and high yield securities.
Features of PCRD:
Portfolio adjustments: PCRD actively adjusts its portfolio to suit changing economic conditions unlike static ETFs.
Global coverage: PCRD holds assets across multiple international bond markets to reduce risk through diversification.
Easy access: Listed on Cboe Australia for seamless trading and high liquidity.
Regular income: Designed for regular income, PCRD is for investors looking for steady income flow.
Launch Data and Initial Fund Valuation
PCRD launched on February 5, 2025 with the following numbers:
Total Units: 30,000
Opening NAV per Unit: $30.00
Fund Size: $900,000
This is the base to measure the fund’s value and progress over time.
Early Performance and Market Dynamics
In the first few weeks of trading PCRD has seen gradual appreciation:
NAV per Unit (February 22, 2025): $30.20
The rise is small but shows the conservative nature of credit investing, prioritising resilience over price volatility.
Investment Analysis: $100,000 Allocation
A $100,000 investment in PCRD on launch would look like this:
Initial Investment Details:
Date: February 5, 2025
Purchase Price per Unit: $30.00
Units: 3,333
Post Adjustment Valuation:
Revised Unit Price (February 22, 2025): $30.20
Portfolio Value: $100,666
Profit: $666
This is a 0.67% short term gain which is in line with credit ETFs where gradual value accumulation and interest distributions are the drivers of performance.
Why PCRD is a great investment in 2025
Broad Economies
Holding bonds from various economies PCRD reduces country risk and enhances portfolio stability.
Active Management for better returns
Unlike passive bond funds PCRD actively adjusts its asset mix to respond to changing credit markets and interest rates.
Lower Equity Market Correlation
Credit ETFs help to buffer against equity market volatility making the overall portfolio more resilient.
Easy to trade with high liquidity
Traditional bond investing can be complex but PCRD is easy to trade through an exchange traded fund.
Key Risks to be aware of
Despite its advantages PCRD has some risks:
Interest Rate Risk: An increase in global interest rates may cause bond prices to fall and impact the fund’s performance.
Issuer Credit Risk: While carefully selected corporate bonds have default risk, investors need to consider this in their analysis.
Foreign Exchange Volatility: With exposure to multiple regions PCRD is affected by currency movements which will impact total return.
Verdict: Should I invest in PCRD?
PCRD combines active management, global diversification and income generation, a perfect option for those looking beyond local credit markets. It can adapt to economic changes and its bonds provide consistent returns.
For those seeking stable income and expertly managed credit exposure PCRD is a good addition to the portfolio. But always consider your personal goals and risk tolerance before investing.
FAQs
How do fixed income securities work in Australia?
Fixed income securities in Australia pay out regular interest to investors in return for lending money to issuers like governments or companies. These investments offer predictable income and capital preservation.
Investors get periodic coupon payments, usually fixed or variable depending on the bond type. At maturity the principal is repaid, making fixed income securities a stable investment with lower volatility than shares.
Australian fixed income securities trade on the ASX or over the counter (OTC). Prices move based on interest rates, credit ratings and economic conditions affecting potential returns for investors.
What types of fixed income investments are available in Australia?
Australia has various fixed income investments including government bonds, corporate bonds, hybrid securities, mortgage-backed securities and exchange-traded bond funds. Each type has different risk and return profiles.
Government bonds issued by the Australian government are low risk investments. Corporate bonds issued by companies offer higher yields but have credit risk based on the issuer’s financial strength.
Hybrid securities combine debt and equity features with fixed or floating interest payments. Fixed income ETFs and managed funds provide diversification making them accessible to retail investors.
How do I invest in Australian government bonds?
Australian government bonds can be bought through the ASX as Exchange-traded Treasury Bonds (eTBs) or Exchange-traded Treasury Indexed Bonds (eTIBs). You can also buy direct from the Australian Office of Financial Management (AOFM).
Investing through the ASX provides liquidity so you can trade bonds like shares. Or you can buy government bond ETFs for diversified exposure, tracking a portfolio of bonds rather than a single issue.
Bonds bought from the AOFM are held to maturity paying fixed or inflation linked interest. You should consider maturity periods, interest rates and market conditions before selecting a bond investment.
What are corporate bonds and how do they differ from government bonds?
Corporate bonds are debt securities issued by companies to raise capital, paying out interest and principal at maturity. They offer higher yields than government bonds due to credit risk.
Government bonds are backed by the Australian government, so they are lower risk with stable returns. Corporate bonds have credit risk, so if the company defaults it can’t pay the bond back.
Fixed or floating interest rates for corporate bonds, fixed or inflation linked for government bonds. Consider company credit ratings and market conditions.
What is the current fixed interest rate?
Rates vary for different types of bonds, maturity and issuer credit rating. Government bonds are reflective of market conditions and influenced by RBA decisions.
Corporate bonds offer higher yields than government bonds for extra credit risk. Hybrid securities and mortgage backed bonds may have even higher rates depending on the economy.
Check ASX listings, AOFM website or financial data providers to track current rates. Regularly monitoring interest rates helps you assess yield and risk.
How are fixed interest securities taxed in Australia?
Interest from fixed interest securities is taxable income in Australia. You must declare this in your tax return and pay tax on your marginal tax rate.
CGT applies if you sell a bond before maturity at a higher price than you bought it for. Government bonds and corporate bonds are taxed the same.
Some fixed interest ETFs distribute interest income and capital gains which are also taxable. Talk to a tax professional or use tax effective strategies like holding bonds in super.
What are the risks of fixed interest securities?
Interest rate risk is when bond prices move with changes in interest rates. Rates up means bond prices down, rates down means prices up and affects your return.
Credit risk is when the bond issuer doesn’t pay interest or principal. Government bonds have lower credit risk, corporate bonds vary with the issuer’s financials.
Inflation risk erodes purchasing power and reduces real returns on fixed interest securities. You can mitigate this risk by holding inflation linked bonds or diversify across different fixed interest instruments.
How does inflation impact fixed interest investments?
Inflation reduces the real value of fixed interest payments making traditional bonds less attractive during high inflation. You may have reduced purchasing power if inflation rises significantly.
Inflation linked bonds adjust principal and interest payments based on inflation indices so you get real returns. These bonds help you maintain income stability in an inflationary environment.
Higher inflation means higher interest rates and bond prices fall. You need to consider inflation expectations when choosing fixed interest investments to balance risk and return.
What is the minimum investment for Australian bonds?
The minimum investment for Australian government bonds on the ASX varies with some bonds available from as low as AUD 100. Direct from the AOFM you need to invest a minimum of AUD 1,000.
Corporate bonds have higher minimums, from AUD 5,000 to AUD 50,000 depending on the issuer. Some wholesale bonds may require AUD 500,000 and are only available to institutional investors.
Fixed interest ETFs have no minimums so you can get bond exposure at any scale. This makes ETFs a great option for retail investors looking for fixed interest allocations.
Can I sell my fixed income securities before maturity?
Yes, you can sell fixed income securities before maturity but the price depends on market conditions, interest rates and demand for the bond. Selling before maturity may result in capital gains or losses.
Government and corporate bonds listed on the ASX are liquid and can be sold at market price. However, pricing fluctuations can impact returns especially in volatile interest rate environment.
Over-the-counter (OTC) bond markets facilitate private transactions but liquidity varies. You should assess secondary market conditions and transaction costs before selling fixed income securities early.
What are exchange-traded bond units (XTBs)?
Exchange-traded bond units (XTBs) are securities that represent fractional ownership in corporate bonds allowing you to trade them on the ASX. They give you exposure to fixed income without requiring large capital commitments.
XTBs track the price and yield of underlying corporate bonds and offer predictable income through fixed interest payments. They help retail investors access corporate bond markets that have higher minimum investment requirements.
You can diversify your fixed income portfolio with XTBs, reduce individual bond risk. However, market liquidity, issuer credit risk and interest rate movements can impact the price and performance of XTBs.
How do I buy fixed income ETFs on the ASX?
Fixed income ETFs are bought and sold on the ASX like shares and provide exposure to a diversified bond portfolio. You need a brokerage account to place buy or sell orders for ETF units.
These ETFs invest in government, corporate and high-yield bonds and offer liquidity and low-cost diversification. You should assess yield, duration, fees and credit ratings before selecting a fixed income ETF.
ASX listed ETFs such as Vanguard Australian Fixed Interest Index ETF (VAF) or iShares Core Composite Bond ETF (IAF) track the broader bond market. Monitor market trends to optimise your fixed income ETF strategy.
What does the Reserve Bank of Australia do in the fixed income market?
The Reserve Bank of Australia (RBA) influences the fixed income market by setting the official cash rate which impacts interest rates, bond yields and market liquidity. Lower rates boost bond prices and higher rates reduce them.
The RBA conducts open market operations buying or selling government bonds to manage money supply and stabilise financial markets. This impacts interest rates and the overall attractiveness of fixed income investments.
During recessions the RBA may do quantitative easing by buying bonds to lower borrowing costs. Watch RBA for clues.
How do credit ratings affect bond investments?
Credit ratings measure the issuer’s financial stability, impacting interest rates and investor confidence. Higher rated bonds (e.g. AAA or AA) have lower yields due to lower default risk.
Lower rated corporate bonds (e.g. BBB or below) have higher yields to compensate for higher credit risk. Investors should consider ratings from S&P, Moody’s or Fitch when choosing bonds.
Rating downgrades can lead to lower prices, upgrades can increase bond value. Diversifying across issuers and monitoring credit ratings helps manage risk in a fixed income portfolio.
What’s the difference between fixed and floating rate bonds?
Fixed rate bonds pay a fixed interest rate for the life of the bond, providing predictable income regardless of market movements. They benefit when interest rates fall, as their fixed payments become more attractive.
Floating rate bonds have variable interest payments that move with the RBA cash rate. They protect against rising interest rates, so returns remain competitive in changing markets.
Investors choose between fixed and floating bonds based on interest rate expectations. Fixed bonds offer stability, floating bonds offer flexibility in volatile rate environments. Portfolio diversification can balance both risks.
Are there fixed income investments for retirees in Australia?
Retirees can invest in government bonds, corporate bonds, annuities and fixed income ETFs for income. These investments provide predictable returns to manage cash flow in retirement.
Annuities provide guaranteed payments for life or a fixed term, reduce longevity risk. Inflation linked bonds help retirees preserve purchasing power by adjusting interest payments with inflation.
Retirees should balance security and income by diversifying across fixed and floating rate securities. Consult a financial adviser to get the right allocation for your retirement goals and risk tolerance.
How do I check my fixed income portfolio?
Fixed income portfolio performance is measured by yield, duration, credit risk and interest rate sensitivity. Investors should compare returns to the Bloomberg AusBond Index.
Watch economic trends, inflation and RBA policies to gauge risks. Rising interest rates can reduce bond prices, falling rates can increase returns, impact overall portfolio performance.
Diversify across bond types, maturities and issuers to minimise risks. Review your holdings and rebalance regularly to ensure alignment with your financial goals, and maximum stability and income.
What are the costs of fixed income investing?
Costs vary depending on the investment method. Direct government bonds have minimal costs, while corporate bonds may have brokerage fees or margin spreads.
Fixed income ETFs and managed funds have management fees, typically between 0.10% to 0.50% per annum. Higher cost funds reduce net returns so it’s essential to compare fees before you invest.
Brokerage fees apply when trading fixed income on the ASX. Investors should consider all costs including fund expenses, bid-ask spreads and tax when choosing fixed income investments.
Where can I get reliable information on Australian fixed income?
Investors can get market data from the ASX, Australian Office of Financial Management (AOFM), and Reserve Bank of Australia (RBA) websites. These sources provide bond yields, interest rate updates and economic reports.
Financial news platforms like the Australian Financial Review (AFR), Bloomberg and Morningstar have fixed income analysis so you can track trends and credit ratings. ETF providers publish fact sheets on bond fund performance.
Brokers, investment firms and financial advisers provide fixed income insights. Reviewing multiple sources regularly helps you make informed decisions and manage your bond portfolio.
Originally Published:
https://www.starinvestment.com.au/best-fixed-income-securities-australia/
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