Gaby Rosenberg

Blossom, the award-winning investment app with over $122 million funds under management, has announced the launch of ‘Blossom for Kids’, a new feature enabling adults to open accounts for under-18 family members or loved ones, giving children access to the Blossom fund for the first time.

By helping parents and grandparents invest early on behalf of children, advisers may also retain business as part of the intergenerational wealth transfer, while tapping into a fast-growing demand for family-focused financial solutions.

Now, Blossom for Kids opens up an exciting alternative to traditional cash and equities products, giving young savers direct access to a professionally managed bond fund via either the Blossom Save or Blossom Plus products, which target returns of 5.45% p.a. and 6.50% p.a. respectively.

This new feature will sit alongside the platform’s existing tailored offerings — including accounts for businesses, self-managed super funds, and couples — expanding the suite of solutions to support clients at every life stage.

The move comes as bonds are increasingly recognised as important for diversified retail portfolios, providing the potential for higher returns than cash while generally presenting less risk than stocks.

Blossom for Kids enables parents to quickly open and manage their child’s account through an easy-to-use app, supporting financial independence with a simple transition when the child turns 18.

Similarly, advisers will have the ability to more seamlessly engage and build relationships with the next generation of investors who may in turn become their clients.

In addition, Blossom’s strong ESG policy means more young investors can grow their savings in a way that aligns with their values, making the platform especially appealing for families seeking socially and environmentally responsible investment options.

By investing in bonds, families can benefit from predictable income streams and steady capital growth, making it a suitable long-term choice for funding future milestones such as education expenses, first homes, travel, or simply growing savings from a child’s own efforts.

Blossom co-founder Gaby Rosenberg said, “Bonds have always played a an important role in building and protecting wealth, but until now they’ve often been out of reach for everyday families. With Blossom for Kids, we’re removing barriers by offering access with minimum investments as low as $5, all through an intuitive digital platform. Parents can easily establish accounts and track progress alongside their children, turning financial literacy into a hands-on experience.”

“Beyond financial returns, Blossom for Kids is also about instilling money confidence early. The experience teaches children the value of consistency, the rewards of patience, and the importance of disciplined investing – key lessons that set the foundation for a lifetime of smart financial decisions. Unlike riskier investments, bonds offer a gentler, more stable introduction to the world of wealth creation.”

Blossom’s experienced funds management team aims to mitigate risks, including interest rate movements and the possibility of issuer default, while the app provides families with access and flexibility.

Blossom for Kids makes it easier than ever for Australian families to give the next generation the financial head start they deserve, unlocking the power of bonds and boosting financial literacy from an early age.

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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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Gaby Rosenberg

Blossom anticipates investor demand for the stability that fixed income offers to remain strong in 2024 as equity and property markets continue to experience volatility.

1. The possibility of Interest Rate Cuts: Some investors are looking forward to the chance of interest rates decreasing in the first half of 2024, following a period of rate increases. This change in monetary policy could make fixed-income investments appealing because lower rates can lead to higher bond prices.
2. Comparing Investment Options: When considering where to invest their money, many people find fixed income, such as bonds, more attractive than stocks, especially when the economy is sluggish, and inflation is falling. Bonds are seen as having good potential, stability, diversification, and attractive pricing compared to stocks.
3. Protection Against Rate Increases: Even if inflation were to push central banks to raise interest rates again, current bond yields are viewed as providing a cushion against further rate hikes.
4. Safe Haven: Fixed income was perceived in 2023 as a safe haven that provided stability and security during times of economic uncertainty and market volatility.
5. Public markets, where companies sell bonds, have become safer than before. In the past, some bonds sold in these markets were very risky. But now, the private credit markets ensure that only less risky bonds are sold. This has resulted in a sanitisation of the corporate bond market. Banks used to take more risks by buying these risky bonds, but now, most of this risk-taking happens in the private credit markets. They have fewer rules, so they buy the risky bonds that banks avoid. In simple terms, the public bond market is safer because risky bonds are removed and managed elsewhere.

Higher or lower?

Demand for fixed income is expected to remain stable or possibly increase in 2024. Investors’ growing confidence in the attractiveness of bonds, their preference for bonds, and the belief that interest rates have reached their highest point all indicate that demand for fixed income will continue or even rise.

Returns on fixed income are expected to be competitive and appealing in 2024, particularly when compared to other low-yield assets such as cash. It is anticipated that bond yields will decrease, potentially leading to capital gains for investors. The Blossom Fund prioritises holding high-quality assets, increasing Fortlake’s (Blossom’s fund manager) trading opportunities to continue to target 5.95% p.a. returns throughout 2024.

By Gaby Rosenberg, o-founder and CEO

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