Compound Capital's Bonds- Direct- Service (BDS) gives you direct access to a wide selection of high credit rated investment bonds, government issues and high yield bonds. At Compound Capital we have access to a broad range of global bonds to suit all risk types.
We are committed to ensuring bonds are accessible to all types of low to high risk profile investors. Traditionally, corporate bonds were restricted to big money market participants. However we make it our priority to give the private clients the same opportunity as the institutions.
You will have access to the top 100 best performing bonds, from well-known names such as Westpac bank, ANZ bank and Commonwealth bank through to smaller companies such as Sigma Healthcare Ltd and Graincorp Ltd. It also offers a blend of fixed, floating and inflation-linked bonds. You can choose from sample portfolios or hand-select the bonds which compliment your specific income requirements.
As well as our bonds direct service you will have access to our global secondary market. our secondary market enables you to buy and sell stakes in funds before the lifecycle is complete - bringing the potential for liquidity to the asset class. We understand liquidity circumstances change from time to time. It's important that you are not restricted to selling out. A lot of companies penalise you for selling early. With access to our secondary market you will not be penalised by us. On occasions there are admin fees for title changes in transfer of your bond certificate.
Here in Australia there are two markets for direct ownership of bonds. There is the over the counter (OTC) market, and there is the ASX which is a smaller market and has a more limited range of bonds available. The OTC market in Australia is valued at approximately $1.7 trillion and it has over two hundred and eighty separate issuers. There is no central exchange in the OTC market, like you find with the ASX. This means you need a broker or dealer like Compound Capital to access this market for you.
Traditionally, in the OTC market bonds were only available to big ticket buyers in $500,000.00 parcels. However, here at Compound Capital we have made bonds available to private retail investors in smaller parcels. For example, we have over 300 bond issues available in parcel sizes starting from as low as $10,000.00. On the ASX, bonds do not have a minimum parcel size, but the range of bonds available however for market participation is extremely limited.
In Australia we have an extra level of security for our capital because investors are covered by the Governments Financial Claims Scheme - The FCS.
The FCS is a government saver and investor protection scheme that protects your money up to $250,000 for an individual account and $500,000 for a joint account. So in the unlikely event that the bank or government defaults on your deposit, you wouldn't lose out. Your money is fully protected, insured and guaranteed. The government guarantees your money and interest payments. This makes the local bond market very attractive to the private investors.
Global bonds are a unique opportunity class that can produce superior returns and diverse sources of alpha for a purely domestic bond portfolio. We believe an allocation to global bonds provides domestic portfolios with complementary sources of return by investing in multiple country yield curves, as well as through prudent currency management. Active global bond investors, therefore, have an intrinsic advantage due to an expanded opportunity set. Investors who focus on government bonds in a single country are limited largely to binary duration decisions, while global managers who have the skill to manage country rotations can capture much more complex relationships.
In allowing portfolio managers to invest globally, investors diversify their sources of return and, in our view, allow greater potential for outperformance. An appropriately positioned strategy is critical to success when investing in global bonds. In our view, global fixed income investment portfolios built around indices are less likely to provide strong returns because index weights are directly proportional to the size of a country's debt issuance. Therefore, investors in benchmarked strategies are led to increase holdings in countries with huge debt loads, not huge opportunities.
As an unconstrained, flexible strategy it can allocate across the global fixed income universe (government bonds, inflation linked, investment grade credit, high yield and emerging market debt) and seeks to respond to different stages of the market cycle and allocate accordingly.
The investment process is based on our proprietary framework which breaks down the global fixed income universe in a simple and transparent way, according to risk factor sensitivity. The portfolio allocates across three risk buckets - defensive, intermediate and aggressive - allowing the Manager to adjust the portfolio's allocation depending on the market environment, to help mitigate risk.
We have been providing practical financial planning advice and risk management services to private and institutional clients for over 17 years. As financial professionals we provide individuals and businesses with advice on practical and relevant solutions to help them to meet their financial goals. Our areas of expertise are:
Whether you are investing in the local or global bond markets, Compound Capital have a diverse selection of top tier investment bonds to suit all risk appetite's. With access to a primary and secondary market, our investor's liquidity is assured.
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Build a portfolio or update an existing one. Our portfolio and risk managers will always look at your circumstances and plans as a whole before providing their recommendations. They'll find out about your circumstances and discuss your choice of service to make sure it's right for your risk and objectives.
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Risk management is an important part of what we do and our success. Combining our sophisticated risk analytics and highly scalable processing capabilities to enable you to see your whole portfolio, understand risks and exposures and act with speed and precision.
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Compound Capital PTY LTD (ABN: 68 114 194 286) holds an Australian Financial Services Licence (AFSL Number: 290981).
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