GGOV aims to track the performance of an index (before fees and expenses) that provides exposure to a portfolio of high-quality, long-dated, fixed rate US Treasury bonds, hedged into AUD.
The Mutual Cash Fund offers a diversified portfolio of fixed income credit assets with low correlation to equity markets.
HCRD aims to track the performance of an index (before fees and expenses) that provides intelligent exposure to a portfolio of senior, fixed-rate, investment grade Australian corporate bonds, hedged to reduce interest rate risk.
The fund aims to provide investors with the performance of the Bloomberg AusBond Composite 0+ Yr IndexSM, before fees and expenses. The index is designed to measure the performance of the Australian bond market and includes investment grade fixed income securities issued by the Australian Treasury, Australian semi-government entities, supranational and sovereign entities and corporate entities
30BB provides access to attractive returns from a diversified portfolio of high-yielding, investment-grade, Australian corporate bonds maturing in the 12 months leading up to May 2030. The fund targets fixed monthly income payments.
The fund aims to provide investors with the performance of the Bloomberg AusBond Inflation Government 0+ Yr IndexSM, before fees and expenses. The index is designed to measure the performance of a segment of the Australian bond market comprised of inflation-linked fixed income securities.
Consistent returns aiming for cash + 3.50%.
The SPDR® S&P®/ASX iBoxx Australian Government Bond ETF seeks to closely track, before fees and expenses, the returns of the S&P/ASX iBoxx Australian & State Governments 0+ Index.
The Fund aims to provide investors with the performance of the ICE U.S. Treasury 20+ Year Bond AUD Hedged Index, before fees and expenses. The index is designed to measure the AUD hedged performance of bonds issued by the U.S. Treasury that have a remaining maturity of twenty years or more.
Attractive income from diversified Australian bonds
BSUB aims to track the performance of an index (before fees and expenses) that provides exposure to a portfolio of floating rate subordinated bonds issued by the four major Australian banks.
The SPDR® S&P®/ASX iBoxx Australian Bond ETF seeks to closely track, before fees and expenses, the returns of the S&P/ASX iBoxx Australian Fixed Interest Diversified 0+ Index.
Bond investing is a fundamental part of the fixed-income securities market.
It involves purchasing debt instruments issued by governments, municipalities, and corporations.
Bond investing involves buying bonds to earn interest income and, potentially, to achieve capital appreciation.
A bond is essentially a loan made by an investor to a borrower (the issuer), who promises to pay back the principal amount at a specified maturity date, along with periodic interest payments, known as coupon payments.
There are several types of bonds, including:
The three main features of Bond investing are:
There are four main risks of Bond investing:
Investors can evaluate Bonds using several criteria:
Investors can invest in Bonds through various avenues:
It varies by bond type; some can be purchased for as little as $1,000.
Bond funds can be less risky than individual bonds due to their diversification benefits, but they can also be affected by market volatility.
Many brokerage platforms allow for the automatic reinvestment of interest payments.
Bond ratings are assessments of the creditworthiness of a bond issuer, ranging from AAA (highest quality) to D (default).
Higher-rated Bonds are generally considered safer, while lower-rated bonds may offer higher yields but come with increased risk.
Yield is the income return on an investment, typically expressed as a percentage.
For Bond investors, yield can refer to the coupon yield, current yield, or yield to maturity (YTM), which considers total returns if the bond is held to maturity.
Diversification in Bond investing can be achieved by investing in bonds with different maturities, credit qualities, and types (government, municipal, corporate).
This helps spread risk and can moderate the impact of interest rate fluctuations.
Inflation erodes purchasing power, which can negatively impact upon the real returns on bonds.
To mitigate this risk, Bond investors may look for inflation-protected securities, like TIPS (Treasury Inflation-Protected Securities).
A Bond’s face value (or par value) is the amount paid back to the bondholder at maturity, whereas a Bond’s market value is the current price at which the Bond can be bought or sold in the market, which can fluctuate based on interest rates and issuer credit quality.
In summary, Bond investing provides a relatively stable income source with a lower level of risk compared to equities.
Understanding the types, features, and risks of Bond investing is essential for making informed investment decisions.
By comparing key metrics such as yield, credit ratings, and utilising diversified strategies like Bond funds, investors can optimise their bond portfolios effectively.
As market conditions evolve, staying informed and adapting investment strategies is crucial for successful Bond investing.
