FIXED INTEREST TERM DEPOSIT and FIXED RATES TO STAY LOW
Term deposits now average under 0.50 % for 6 months , Burrell client interest grows rapidly for regular income alternatives .
Income Alternatives
Hybrid securities or preference shares , particularly those of the banks , continue to be a yield opportunity . Clients assume the risk these securities may in times of economic stress will be converted to ordinary shares or worst case written off . On current pricing and subject to their terms and maturities , after franking yields now range generally between 3.0 % & 3.5 %.
Burrell provide listed & un-listed opportunities that have a broad mix and diversification of holdings within their trusts .
Listed income trusts ( LITs ) trade daily and are subject to fluctuations like shares . LITs are not a short-term investment .
・ Plato Income Maximizer Trust
� After franking dividend earner , current return over 6 %, payable monthly . Actively traded with the underlying security is relatively high dividend paying Australian listed shares .
・ Gryphon Capital Income Trust
� Presently earning circa 4 %, payable monthly , underlying security principally Australian mortgage backed securities with revenue from Australian household mortgages .
・ Spectrum Income Fund
� Earning rate circa 3.4 %+, payable quarterly , underlying security principally Australian & international bonds issued by banks , governments and corporations
・ Perpetual Credit Income Trust
� Earning rate circa 3.4 %+, payable monthly , underlying security principally Australian & international bonds issued by banks , governments and corporations
Bonds For clients with in excess of $ 50,000 to invest in some specific fixed income bonds , yields over 2.5 % are still possible and may be sourced from a variety of corporations . Recent examples that Burrell clients invested include Suncorp and QBE Insurance , both of these institutions are regulated by the Australian Prudential Regulatory Authority ( APRA ).
None of these alternative income investments carry the federal government $ 250,000 bank deposit guarantee . Your Burrell advisor would be pleased to expand further on these and many other income opportunities .
Wayne Matthews Wealth Management Advisor Fixed Interest , Not For Profit Specialist ( 07 ) 3006 7213 wmatthews @ burrell . com . au
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