Fixed interest

Designed for investors looking to gain exposure to a fixed income

 

In detail

Fixed interest securities provide two essential components of a portfolio - a dependable level of income and asset class diversity. 

Diversification is key to a long-term investment portfolio and fixed interest securities may help to stabilise returns during periods of market volatility.

Some key features and benefits of fixed interest securities are: 

  • potential for a regular income stream 
  • usually higher yields than cash 
  • access to a range of maturity terms 
  • competitive pricing.

 

Things to consider 

Fixed interest securities:

  • may suit investors of all risk profiles 
  • have historical negative correlation of debt market returns to other asset classes such as shares 
  • through some debt instruments, such as fixed interest bonds, allow investors to generate capital gains (or losses) from changes in interest rates 
  • may help enable clients to diversify or balance their portfolio.