TermPlus expands fixed-term accounts for SMSF investors

TermPlus has expanded access to its fixed-term investment accounts for Australian self-managed super fund investors and retirees. The product links monthly income targets to the Reserve Bank of Australia cash rate.

The expansion comes as investors seek income while inflation remains elevated and cash allocations in the SMSF sector have fallen. Australian Taxation Office figures show the sector held AUD $1.06 trillion in assets across 663,867 funds at the end of 2025, with cash and term deposit allocations at 16.3%.

Backed by Pengana Capital Group, TermPlus operates as a registered managed investment scheme. It offers one-year, two-year and five-year terms, with a minimum opening balance of AUD $2,000.

Returns are set at a margin above the RBA cash rate for each term. With the cash rate at 4.35%, the one-year target rate is 7.35%, the two-year rate is 8.00%, and the five-year rate is 8.50%.

The fixed margin remains in place for the life of the term, while the RBA component can change in response to central bank decisions. Investors can take income as monthly payments into a linked bank account or reinvest it.

Market backdrop

Interest in fixed-term income products has risen as consumer prices have accelerated again. Australian Bureau of Statistics data showed consumer price growth of 4.6% in the year to March 2026, the highest annual reading since September 2023.

The Reserve Bank has also tightened policy, lifting the cash rate to 4.35% after a third consecutive increase this year. That has raised the reference point for products tied to official rates and prompted investors to reassess whether traditional cash products still meet their income needs.

At the same time, ATO data points to a broader shift in portfolio construction among SMSF investors. Lower holdings in cash and term deposits suggest more investors are moving into structures designed to provide regular income from a wider range of underlying assets.

Portfolio structure

TermPlus says its accounts differ from traditional fixed-term products because the underlying portfolio is invested across global private credit markets rather than relying solely on bonds or domestic private credit. The portfolio includes more than 4,500 contractual loans.

Mercer provides input on the portfolio. The product also has research coverage from Lonsec and an Approved rating with a Stable Outlook from BondAdviser.

Unlike an ordinary savings account, the structure restricts access to capital during the term. Investors cannot add fresh funds to an existing account once it has started, apart from reinvested monthly income, and withdrawals are not permitted before maturity.

Those who want to invest more can open additional accounts through an online dashboard. At the end of a term, investors can withdraw the full balance, roll it into a new term, or make a partial withdrawal and roll over the remainder.

The election process requires notice between three and six months before the end of the term. According to TermPlus, the notice period helps manage liquidity in the underlying portfolio without selling assets under pressure.

Retail push

The offering reflects a broader push to give retail investors access to areas of the private markets that were once more common in institutional portfolios. In Australia, that trend has gained pace as retirees and SMSF trustees seek income sources beyond listed shares, bank deposits and conventional fixed-income funds.

For investors, the appeal lies in the combination of regular income and a defined term. But the use of target rates rather than guaranteed returns marks an important distinction from bank deposits. TermPlus says the published target rates are net of fees and costs.

There are no setup, monthly account or transaction fees, and portfolio management costs are included in the advertised rates. The design aims to offer a simpler route into a diversified private credit portfolio while preserving a fixed-term account format familiar to many retirees and SMSF trustees.