Income investment has arguably become even more attractive following changes to Capital Gains Tax (CGT) in the last Federal Budget, though diversifying within income portfolios is important to navigate volatility in interest rates, Weinbren said. “We’ve seen volatility in interest rate predictions over the last couple of years, and investors could have been caught out in thinking interest rates were on a downward trajectory.

“But markets and experts are now expecting more than one additional rate rise for 2026, as reserve bank tries to tame inflation.

“For many income investors, these rate rises can represent a missed opportunity if they are over-exposed to fixed rate income securities, and trapped at a lower rate while the RBA rate heads higher.

“Floating rate securities mean investors will have the potential to enjoy a higher return in line with rate increases, which has obvious benefits during times of higher inflation.”

Weinbren acknowledged floating rate securities can work both ways, with investors receiving a lower return in line with interest rate cuts. The key factor is considering the targeted spread over and above the RBA cash rate, which can protect investors’ savings from inflation.

“When rates are rising there is going to be more pressure in the economy, and more pressure felt by investors. Receiving higher returns via floating rate securities is important to ease that pressure and maintain long-term performance.

“The main thing for investors to consider is the spread between the RBA cash rate and the returns paid to the investor.

“This spread can help to keep investors ahead of inflation, whether rates rise or fall.

“From a diversification point of view, it’s good to know at least part of your portfolio will benefit from increased interest rates”, Weinbren said.

Due to increasing demand for the product from financial advisors, TermPlus now has a financial advisor portal allowing advisors quick and easy access to a quality portfolio of floating target rate global private credit securities managed in association with global investment leader, Mercer.

These online term accounts may be appropriate for self-managed super funds, pre-retirees, retirees, companies, charities, trusts, or anyone looking for an attractive and reliable monthly return thorough a fixed-term account.

TermPlus target rates are set as a fixed margin above the cash rate with accounts paying RBA Cash Rate + 3% for a 1 year term, +3.65% p.a. for a 2 year term, and +4.15% p.a. on a 5 year term account.

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Pengana Capital launches Conscious Capitalism adviser-only conferences, to be held across three cities during June.

In line with the continued growth of investor interest in ESG, ethical and impact investment strategies, fund manager Pengana Capital Group has announced a flagship responsible investing event series, Conscious Capitalism adviser-only conferences, to be held across three cities during June.

The Conscious Capitalism events will be held in partnership with two leading international investment houses: UK-based WHEB Asset Management, which was last year awarded ‘European ESG Manager of the Year’ in the Funds Europe Awards 2021, as well as ‘Impact Manager of the Year 2021’ at the LAPF investment awards; and US-based Axiom Investors, which has invested ethically on behalf of institutional investors for nearly 25 years. Both Fund managers have partnered with Pengana to provide ethical and sustainable impact investment strategies for Australian investors.

Dean Weinbren, Executive Director of Pengana Capital Group, says investors’ expectations on financial advisers when it comes to responsible investment strategies are growing. “As investors begin to become more conscious of the implications of where they allocate their investments, there is a growing expectation on advisers to be able to understand, interpret and accommodate their clients moral and ethical standpoints when it comes to where and how they invest their hard-earned money.

“Conscious capitalism is about understanding that even one seemingly small decision to invest away from harmful industries has the potential to make a positive impact on our future, while also providing robust investment returns.

“Investors are increasingly interested in the impact their investments have on broader social and economic outcomes.”

Mr Weinbren said the Conscious Capitalism events will explore the latest trends and innovations in responsible investing. “This is a very exciting space, and we are pleased to be able to partner with such quality managers such as WHEB and Axiom to bring these events to the financial advice industry.”

Pengana Capital Group’s Executive Director and Responsible Investing Specialist, Adam Myers, will kick off the events with a deep dive into the latest trends and innovations in responsible investing. Axiom will explore how active and ongoing improvements in a company’s ESG alignment can improve relative share price performance. And WHEB will look into how periods of instability can result in the reordering of societies and priorities, which in turn provides opportunities for investors to benefit from finding companies with strong competitive advantages in niches which address these challenges.

Register for the Sydney, Melbourne or Brisbane events.

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