Pengana Capital Group has unveiled its new platform TermPlus, an online term account solution underpinned by a diversified portfolio of highly rated global private credit.
Noting that the solution has been designed with “everyday Australians” in mind, Pengana said that TermPlus aims to deliver reliable income via floating-rate term accounts, with a minimum investment of $2,000.
The firm believes this will be an attractive opportunity for both retail and institutional investors.
Notably, TermPlus target rates are calculated as a fixed spread above the Reserve Bank of Australia (RBA) cash rate.
For a one-year term account, this equals the RBA cash rate plus 3 per cent net of fees, which would currently total a target rate of 7.35 per cent. This increases to 3.65 per cent for a two-year term (totalling 8 per cent), and 4.15 per cent per annum for a five-year term (totalling 8.5 per cent).
Investors will have the choice to reinvest their monthly income for monthly returns, or have it paid directly into their bank account.
According to TermPlus managing executive Dean Weinbren, this new offering is set to redefine how Australians think about “putting their savings to work”.
“TermPlus unlocks the world of global private credit to deliver highly attractive target rates for all Aussies, via a modern and user-friendly digital platform that allows investors to open a term account within minutes,” Weinbren explained.
“TermPlus caters to an extensive list of investor types, including personal accounts, joint accounts, child accounts, SMSFs, companies, and unregulated trusts.”
Noting that term accounts have, historically, been backed by the domestic credit market, Weinbren said TermPlus is tapping into global private credit to deliver attractive target rates.
“We are excited to take an asset class which is in high demand yet difficult to access and make it available to anyone who is looking to have their savings work for them.”
“The TermPlus platform itself is totally unique and offers investors a great range of account features.”
Pengana further clarified that TermPlus accounts will have three distinct built-in layers of protection, underpinned by a “support account” investment from the company itself.
Chief executive Russel Pillemer added that the offering is a “long-overdue” solution for Australians looking for superior target rates from their online term accounts.
“With TermPlus, Pengana has successfully innovated to democratise a new category of highly sought after, typically inaccessible, investment opportunities for income investors. This is further delivered through an easy-to-use product supported by a hugely sophisticated engine and technology platform,” Pillemer said.
The platform marks the third product to launch from Pengana’s newly formed credit division, with the firm announcing on Tuesday that the initial public offering (IPO) for the Pengana Global Private Credit Trust (ASX: PCX) closed last week with some $160 million in applications and commitments.
It is expected that settlement for PCX will occur on 14 June, with trading on the ASX to commence later this month.
