QPON

About

Aims to provide attractive and regular income distributions, combined with a high level of capital stability, expected to exceed income paid on cash and short-dated term deposits.

• Assets are invested in a portfolio of senior floating rate bonds issued by Australian banks
• Eligible bonds must have amounts outstanding of at least $500 million and a term to maturity of between 1 to 5 years
• At least 80% of total portfolio weight allocated to bonds issued by the following eligible banks: ANZ Bank, Commonwealth Bank of Australia, National Australia Bank and Westpac (equally weighted)
• Up to 20% of total portfolio weight allocated to bonds issued by the following eligible banks: AMP Bank, Bank of Queensland, Bendigo & Adelaide Bank, Macquarie Bank, Members Equity Bank and Suncorp-Metway

Advantages

• Regular attractive income – income paid monthly, and expected to exceed income paid on cash and short-dated term deposits. Income expected to rise should interest rates rise and vice versa
• Stability – historically Australian bank senior floating rate bonds have had a high level of capital stability, and limited capital variability during market declines
• Diversification – floating rate bonds have historically exhibited low correlation to equities as well as defensive characteristics during market declines
• Low cost – management costs of only 0.22% p.a.
• Access – simple way to access a diversified portfolio of Australian bank senior floating rate bonds, inaccessible to most investors directly
• Liquidity – available to trade on the ASX like any share, capital not locked up unlike term deposits

How to Invest

• You can buy or sell units just like you’d buy or sell any share on the ASX
• Fund requires no minimum investment