Stake 'breaks barriers' with inaugural fixed income product

The investment platform has launched an actively managed fund, targeting a return of 2% above the Reserve Bank of Australia's (RBA) cash rate.

Launched today, Stake Accumulate is primarily invested in liquid, fixed income securities, but may also invest in a wide range of debt instruments, and cash and private credit.

It aims to provide the target return monthly; the investment decisions are based on macro-economic, and company or sector specific views, to capture yield and exploit various inefficiencies across global fixed income and credit markets, Stake said.

It also features a limited income buffer (of up to 5% of the fund's total assets), to mitigate the risk of distribution shortfalls if the fund fails to reach its target return.

"We know that a growing number of Australians want access to income generating products such as corporate bonds and treasuries, but the high levels of complexity have made it difficult for most people to navigate," Stake chief executive Jon Howie said.

"Stake Accumulate breaks barriers to income investing through a seamless and intuitive experience, giving customers a new way to diversify their portfolios."

Additionally, the fund contains an automated reinvestment feature, with distributions being reinvested automatically to deliver compound returns. Alternatively, distributions can be paid directly into Stake AUS balances.

Investors can also withdraw into their Stake Aus balance without incurring any exit fees.

The strategy charges a management fee of 0.51% per annum and requires a minimum investment of $500, as well as $10 for any additional investments thereafter.