Fixed & Floating Rate Securities versus Cash. It’s time…

Portfolios of directly held Fixed & Floating Rate Securities not only significantly enhance income from cash bank balances that may have been held for a long time but provide advantages.

Over the past 7 years Private Portfolio Managers Pty Limited (PPM) has offered a fixed interest strategy in addition to our domestic and global equities strategies. At times it has proved a key component of the PPM investment philosophy as it has enabled us to build portfolios that have a suitable balance between safeguarding funds whilst positioning them to best capture opportunities when they arise.

At the time of writing, the yields on fixed and floating rate securities are substantially above the cash rate and are more in the 6%+ range.
We’re now going through a period where there’s concern about rising interest rates and inflation.
After 10 years of defensive assets such as cash and fixed interest delivering little income, yields are back again. Defensive assets which once formed a significant part of risk averse portfolios, are providing value again.

Portfolios of directly held Fixed Interest securities can significantly enhance the income for those who have for a long time held just cash bank balances. What’s more, they have the advantages of:

  • Transparency
  • Predictable income
  • Flexibility

Fixed and Floating Rate Securities may not be as glamorous as equities but they are less volatile and certainly provide a solid foundation for surviving the inevitable fluctuations whilst protecting your funds. PPM would be delighted to arrange a meeting with you to discuss the benefits of Fixed and Floating Rate Securities as part of a balanced portfolio with known income streams.

For further information on our Fixed Interest service offering please contact Jill May, Head of Client Relations or your Portfolio Manager on (02) 8256 3777 or