Bonds are back: Understanding the role of fixed income

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Fixed income has long been recognised as a core building block of a balanced portfolio, offering defensive characteristics and valuable diversification.

And in today’s uncertain environment – with markets responding to shifting interest rates, inflation and global volatility – its role is more relevant than ever.

Yet many Australian investors remain underweight in fixed income.

For example, the average Australian super fund allocates just 20.3% to fixed income, around a third of the OECD average[1]. That gap suggests fixed income is still underused by many investors, despite the diversification and defensive benefits it can offer.

Bridging that gap starts with understanding. If you’re investing for the long term, knowing how fixed income works – and how it could support your strategy – can be a valuable piece of the puzzle.

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A clear, easy-to-follow resource that explains how fixed income works, what drives its returns, and how it can help support your investment goals.

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[1] Quarterly superannuation statistics | APRA.

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