Welcome to the Bell Direct mFund Asset Class series

Are you looking for an easier way to diversify your portfolio?

Let's talk about Fixed Income

Let's talk about Fixed Income

The Bell Direct mFund Asset Class series is exploring 5 different asset classes: alternatives, fixed income, property, Australian equities and international equities.

This month, we're looking at Fixed Income.

When you invest in Fixed Income (or bonds), you usually lend money to a government or a company. In return, your bond pays interest on a regular basis and the principal at maturity. 

The main benefits of investing in bonds are steady income and capital stability for your portfolio.

Find out more below.

How can Fixed Income work in a diversified portfolio?

Fixed Income can play the defensive role during times of economic instability.

It's generally considered lower risk than shares and provides regular interest payments.

Watch our equities strategist, Julia Lee, speak about investing in Fixed Income.

How can I benefit from Fixed Income?

You can use Fixed Income as a tool to: 

  • Help with capital protection 
  • Provide low risk returns in a defensive role
  • Generate a steady income stream as a source of liquidity
  • Diversify your portfolio from equity risk

How interest rates affect bonds?

  • When interest rates fall: the value of your fixed rate bond will typically rise but the value of your floating rate bond won't change.
  • When interest rates rise: the value of your fixed rate bond will fall but the value of your floating rate bond won't change. 

With mFunds, you can access Fixed Income investments selected by professional managers the easy way.

The Spectrum Strategic Income Fund

The Spectrum Strategic Income Fund

This fund, managed by Spectrum Asset Management:

  • Invests primarily in A$ corporate bonds – mainly floating rate notes.
  • Aims to provide steady returns higher than bank deposits with less volatility than equity markets.
  • Provides daily liquidity (redemptions usually processed in 2-3 working days).
  • No leverage, no derivatives, no currency risk.
  • Diversified via blue chip international corporate bonds with local utilities. 
  • Underweight exposure to local banking and real estate. 
  • Offers an alternative to deposits, equities, and property
  • Independent and not constrained by bond indices.

You can invest in the fund on the Bell Direct platform via mFund using the code SPE01.

Watch the video to find out more

The Schroder Fixed Income Fund

The Schroder Fixed Income Fund

Do you want access to diversification and low risk returns? This fund, managed by Schroders, is designed to be your 'one-stop' defensive fixed income solution. 

  • Aims to deliver stable absolute returns over time.
  • International and domestic exposure with access to a wide range of assets from government bonds to developing market bonds.
  • Diversification against the impact of share volatility in your portfolio.
  • The fund can adjust its position when interest rates change to better protect your capital.

You can invest in the fund on the Bell Direct platform via mFund using the code SCH51.

Watch the video to find out more

The Schroder Absolute Return Income Fund

The Schroder Absolute Return Income Fund

Are you after a steady income in any market environment? This fund, also managed by Schroders, has a strong focus on reducing losses and managing risk. It gives you:

  • The potential for higher returns than bank deposits with an objective to outperform the RBA cash rate.
  • Certainty - the fund aims to give you a predictable income at a rate of approx. 3.4% p.a.
  • Higher protection of your investments in case interest rates rise.
  • The ability to sell when you want with no lock up periods.
  • Exposure to a broad investment universe including corporate bonds, hybrids, developing market debt and currencies. 

You can invest in the fund on the Bell Direct platform via mFund using the code SCH55.

Watch the video to find out more

The Spectrum Strategic Income Fund

The Schroder Fixed Income Fund

The Schroder Absolute Return Income Fund 

How do I invest?

There's an easy way to access Fixed Income investments picked by professional managers. The 3 funds we've partnered with are available on our mFund platform.

Simply place an order online through the order pad:​

1. Login to your account and go to the order pad.

  • The mFund code for the Spectrum Strategic Income Fund is SPE01.
  • The mFund code for the Schroder Fixed Income Fund is SCH51.
  • The mFund code for the Schroder Absolute Return Income Fund is SCH55.

2. Read the fund profile and the PDS.

3. When you’re ready to invest, choose the 'Managed Funds' option on the Order Pad and place your order online.

4. Your new mFund units are transferred to your CHESS holdings and you’ll see them in your portfolio.

Find out more & read the fineprint

You can find out more information on the Spectrum Strategic Income Fund here.

Past performance is not a reliable indicator of future performance. Investment returns cannot be guaranteed. In deciding whether to acquire, or to continue to hold, units in the Fund please read the current Product Disclosure Statement (PDS) available from Spectrum or Equity Trustees. This content has been obtained from sources believed to be reliable. Neither Spectrum, Equity Trustees Ltd, nor any of its related parties, its directors or employees, provide warranty of accuracy or reliability in relation to this content or accepts liability to any person who relies on it. This content reflects the information available as at the date of publication and is subject to change without notice.

This content has been prepared by Spectrum Asset Management Limited (Spectrum) (ABN 31 096 442 198, AFSL 225069) as investment manager for the Spectrum Strategic Income Fund (Fund). Equity Trustees Limited (ABN 46 004 031 298, AFSL 240975), a subsidiary of EQT Holdings Limited (ABN 22 607 797 615), a publicly listed company on the Australian Securities Exchange (ASX: EQT), is the Responsible Entity of the Fund. This content has been prepared for the purpose of providing general information only, and has not taken into account the investment objectives, financial situation and particular needs of any particular person. Before making an investment decision an investor needs to consider, with or without the assistance of an advisor, whether the advice is appropriate in the light of particular investment needs, objectives and financial circumstances of the investor. 

Bell Direct charges a marketing fee for the promotion of the Spectrum Strategic Income Fund.

You can find out more information on the Schroder Fixed Income Fund here.

Past performance is not necessarily indicative of future results and Schroders does not guarantee the future performance of the Fund, the amount or timing of any return from it, or that it will achieve its investment objective. The source of this table is Schroders. Opinions constitute our judgement at the time of issue and are subject to change. Investment guidelines represented are internal only and are subject to change without notice. 

This information has been issued by Schroder Investment Management Australia Limited (ABN 22 000 443 274, AFSL 226473) (Schroders). Investment in any of the Schroder Funds may be made on an application form in the Fund’s Product Disclosure Statement (PDS) available from Schroders or through the mFund platform. This material has been provided for general information only and must not be construed as investment advice. Before acting on the information contained on this website, you should obtain a copy of the PDS and consider the appropriateness of the information in regard to your objective, financial situation and needs before making any decision about whether to invest, or continue to hold.

Bell Direct charges a marketing fee for the promotion of the Schroder Fixed Income Fund.

You can find out more information on the Schroder Absolute Return Income Fund here.

Past performance is not necessarily indicative of future results and Schroders does not guarantee the future performance of the Fund, the amount or timing of any return from it, or that it will achieve its investment objective. The source of this table is Schroders. Opinions constitute our judgement at the time of issue and are subject to change. Investment guidelines represented are internal only and are subject to change without notice. 

This information has been issued by Schroder Investment Management Australia Limited (ABN 22 000 443 274, AFSL 226473) (Schroders). Investment in any of the Schroder Funds may be made on an application form in the Fund’s Product Disclosure Statement (PDS) available from Schroders or through the mFund platform. This material has been provided for general information only and must not be construed as investment advice. Before acting on the information contained on this website, you should obtain a copy of the PDS and consider the appropriateness of the information in regard to your objective, financial situation and needs before making any decision about whether to invest, or continue to hold.

Bell Direct charges a marketing fee for the promotion of the Schroder Absolute Return Income Fund.