Gaby Rosenberg

Blossom, the Australian fixed income app, announced it surpassed $75 million of funds under management (FUM), with a surge of interest in Blossom’s expanded suite of fixed income investment products targeting more mature investors.

Following the launch of a slew of additional product offerings, Blossom has accelerated their inflows in 2024 as they’ve appealed to a wider investor base.

In addition to the original Blossom Save product targeting 5.95% p.a., Blossom launched Blossom Plus targeting 7.00% p.a. ,which has been especially well received accounting for $20m FUM since March 2024.

The uptick in the Blossom Plus Fund, which has a $5,000 minimum and offers quarterly withdrawals, highlights the increase in Australian investors aiming to build substantial savings for longer-term goals while seeking stable, higher returns.

The expanded product range caters to a diverse group of investors, and has boosted Blossom’s FUM beyond the $75m milestone, highlighting the demand for additional fixed income products with stronger returns in a higher interest rate environment.

Blossom’s FUM breakdown as of July 2024:

• Blossom Save has secured $56m in FUM
• Blossom Plus has secured $20m in FUM
• Blossom for Business / Blossom for SMSF has accounted for more than $12m in FUM

Gaby Rosenberg, Co-Founder of Blossom said: “We’re thrilled to have reached the milestone of $75 million in FUM. We’ve seen a surge in interest in fixed income investments since expanding our product offerings, particularly with Blossom Plus, which offers investors the opportunity to lock away funds for a longer period in exchange for a higher targeted rate of return of 7.00% p.a.

Bonds and fixed income have underpinned our investment portfolio since inception, offering more stable and predictable returns, particularly during periods of market volatility.​

The market’s underestimation of the likelihood of imminent rate hikes presents an opportunity for stability for those investing in fixed income funds like the Blossom Fund.

The Blossom Fund is diversified across more than 400 exposures and has had 100% positive months since inception, despite 13 rate rises since May 2022. This puts Blossom investors in a strong position to ride out, and even benefit from, further potential rate hikes in 2024.

We’re excited to continue expanding our Blossom offering to cater to the needs of our investors and reach our goal of $100 million FUM in 2024.”

Everyday Australians, SMEs and SMSFs can invest in the professionally managed Blossom Fund via the Blossom app.

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