A balanced portfolio of Investment Grade Bonds and secured private credit bringing in nearly 9pc per annum

May 2025

By Victor Gugger

In this era of Trump domination and in an unpredictable market environment, equity portfolios are facing negligible returns. One thing is for certain – volatility is here to stay.

While overseas investors are well versed and have greater allocations in the corporate bond and private credit fixed income space, Australian investors typically favour real estate and equities, missing out on the stability and diversification fixed income can offer.

At IAM, we specialise in fixed income and have access to many opportunities that can provide consistent returns with lower risk. The benefits of investing in direct fixed income include:

less complexity
clear visibility into where your money is going
attractive yields without the equity rollercoaster

A nicely balanced portfolio between high yielding unrated and investment grade issues can bring nearly 9% returns without the stress of waking up and seeing equity indices have been hammered while you sleep.

Get in touch if you’d like to build a more resilient portfolio.

i) Yields for floating rate notes are a guide only. Returns are subject to movements in BBSW over the life of the issue.
ii) Yields for Tier 1 and Subordinated Debt (Tier 2) are priced to the call date
iii) Returns and pricing shown are indicative and reflect wholesale market pricing plus Income Asset Management’s bid/offer spread

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^An investment in notes or corporate bonds should not be compared to a bank deposit. Notes and corporate bonds have a greater risk of loss of some or all of an investor’s capital when compared to bank deposits. Past performance of any product is not a reliable indication of future performance. Any forecasts are predictive in character and based on specified assumptions generally available at the time and no reliance should be placed on the accuracy of any forecast information. The actual results may differ substantially from the forecasts and are subject to change without further notice. IAM may quote to you an estimated yield when you purchase a bond. This yield may be calculated by IAM on either A) a yield to maturity date basis; or B) a yield to early redemption date basis. Some bond issuances include multiple early redemption dates and prices, therefore the realised yield earned by you on the bond may differ from the yield estimated or quoted by IAM at the time of your purchase.