Coins

Cash and Fixed Interest Funds

These conservative-type funds invest predominantly in cash and fixed interest (also called fixed income). Fixed interest assets include term deposits, corporate bonds, government bonds, semi-government bodies and debentures.

Cash and Fixed interest investments are generally defensive in nature and are lower risk than shares and property, however, offer potentially lower returns over the longer term.

Investment OptionsRisk LevelInvestment ObjectiveInvestment Strategy
Cash and Fixed Interest Funds
Pendal Short Term Income Securities Fund2 – LowThe fund aims to provide a return (before fees, costs and taxes) that exceeds the Bloomberg AusBond Bank Bill Index.The fund invests in a combination of short-term money market instruments and medium-term floating and fixed rate securities. These may include direct or indirect holdings of government, bank, corporate, asset backed and other
securities. The fund aims to maintain capital stability through limited exposure to interest rate movements and prudent credit management. The fund invests in short-term and medium-term securities that are investment grade rated. The fund may also use derivatives.
Vanguard Australian Fixed Interest Index Fund3 – Low to MediumThe Vanguard Australian Fixed Interest Index Fund seeks to track the return of the Bloomberg AusBond Composite 0+ Yr Index before taking into account fees, expenses and tax.The fund invests in high-quality, income generating securities issued by the Commonwealth Government of Australia, Australian State Government authorities and treasury corporations, as well as investment-grade corporate
issuers. While being low cost, the fund also provides some protection against capital volatility. The investments in the fund are predominantly rated BBB- or higher by Standard & Poor’s ratings agency or equivalent.
Betashares Australian Investment Grade Corporate Bond ETF3 – Low to MediumThe investment objective of the fund is to provide an investment return that tracks the performance of the Solactive Australian Investment Grade Corporate Bond Select TR Index, before taking into account fees and expenses.To invest in investment grade fixed-rate Australian corporate bonds. The fund’s strategy will preference securities offering superior expected excess returns over Australian government bonds.
Pimco Australian Bond Fund3 – Low to MediumTo achieve maximum total return by investing in fixed interest securities predominantly denominated in Australian or New Zealand currencies, and to seek to preserve capital through prudent investment management.In pursuing the fund’s investment objective, PIMCO applies a wide range of diverse strategies including duration analysis, credit analysis, relative value analysis, sector allocation and rotation and individual security selection. PIMCO’s investment strategy emphasises active decision making with a long-term focus and seeks to avoid extreme swings in duration or maturity with a view to creating a steady stream of returns.
Pimco Global Bond Fund3 – Low to MediumTo achieve maximum total return by investing in global fixed interest securities, and to seek to preserve capital through prudent investment management.In pursuing the fund’s investment objective, PIMCO applies a wide range of diverse strategies including duration analysis, credit analysis, relative value analysis, sector allocation and rotation and individual security selection. PIMCO’s investment strategy emphasises active decision making with a long-term focus and seeks to avoid extreme swings in duration or maturity with a view to creating a steady stream of returns.
The fund invests in government, corporate, mortgage and other fixed interest securities. While the fund invests predominantly in investment grade securities, it may also invest in non-investment grade fixed interest securities and emerging market debt. The fund may also hold cash and derivatives.

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