With the Reserve Bank of Australia cutting the cash rate to a record low of 2.25% in February 2015 and signalling it “may need to take a razor to interest rates again”, SMSF trustees are now looking to fixed income rather than relying solely on term deposits as a way to diversify their investment portfolio from traditional asset classes such as shares and property.

As outlined in a recent Kaplan Industry report, our National Manager, Paul Oliver believes that the large cash allocation in the sector is largely a big hangover from the GFC as many investors are still “shell-shocked” from the dramatic equity market falls that occurred between 2007 and 2009. Yet as mentioned earlier, with interest rates having recently fallen so quickly and […]