*estimated return per annum after fees and any losses. Available to Wholesale Investor in Australia.
This week the RBA slashed interest rates to a record low of 1.25%, delivering what many economists expect to be the first of two rate cuts in coming months. Experts agree that savers and investors will be directly impacted as banks are likely to pass on the cut in full resulting in further falls in already low Term Deposit interest rates.
“Investors would do well to consider their options for yield as rates are unlikely to move up any time soon,” said Clearmatch CEO and Founder, Greg Symons. “Whilst the prospect of taking on significantly more risk is not attractive to any conservative investor – whether it be retirees, benevolent institutions or endowments – lower cash rates leaves them with no choice but to consider riskier alternatives. Sitting in investments that are safe but yielding close to nothing does not deliver the outcome they need. In fact, after inflation, some investors are now going backwards in real dollar terms”.
“The Clearmatch [Insurance] Premium Funding Trust is a highly diversified, low-volatility investment with a regular and predictable income stream expected to deliver a risk-adjusted return of 4.2%+ p.a. after fees and losses^. After this week’s cut, that’s 2.95% above cash rates, and more than double most Term Deposit rates, with an extremely low-risk profile”.
“Many investors, unfortunately, react to lower rates by taking on significantly more risk such as increasing their exposure to growth assets. It is possible, however, to access higher yields in very secure credit assets, such as investing in Insurance Premium Funding Loan notes”.
“The good news for wholesale investors ‘feeling the pinch’ from this rate cut is that the Clearmatch Premium Funding Trust remains open but is filling fast,” says Mr Symons.
^ Returns dependent on investor mandate, and relevant risk factors. The information in this article is general information only and is not based on the objectives, financial situation or needs of any particular investor. In deciding whether to acquire, hold or dispose of the product you should obtain a copy of the Information Memorandum and consider whether the product is appropriate for you. A copy of the Information Memorandum is available by calling our Investor Services team on 1300 644 044 or emailing on email@example.com. The Clearmatch Premium Funding Trust is open to Wholesale customers only.
Clearmatch is a marketplace treasury where originators of quality loans can access competitive funding from fixed income investors real-time. Using a proprietary asset fractionalisation technology, funders’ risks are reduced through high diversification, delivering unparalleled transparency.
We offer a suite of alternative fixed income solutions which allow investors to receive regular income streams with risk-weighted return based on the underlying credit profile of the assets.