Australian retirees choose Income Direct fixed income accounts for capital stability amid economic turmoil

Income Direct, the Australian wholly owned subsidiary of global investment manager Marbanc International Corporation, has seen an uptick in demand for its fixed income accounts as investors seek capital stability among inflationary pressures and economic turmoil arising from the conflict in the Middle East.

The capital stable fixed income products offered by Income Direct are proving to be a popular option with Australian retirees and self-managed superannuation trustees who are seeking to secure their financial future, with the group experiencing annualised demand in recent months of more than $1 billion.

As capital markets tighten and real estate investors look to take profits, investors seeking a comfortable and predictable source of retirement income are looking for fixed income opportunities where volatility is borne by the investment firm rather than the investor.

Martin Birch, director of client services at Income Direct, says clients of his firm are enjoying fixed interest returns in the range of 6.60 per cent to nearly 10.0 per cent per annum which he says is a competitive risk-adjusted rate of return without setup, management or performance fees.

“Our Fixed Income Accounts are a popular, and in my opinion remarkably superior, alternative to traditional funds. We have skin in the game with every transaction, we can invest across a broad range of asset classes, and returns to our clients can come from a variety of sources, not just the specific assets invested in. Our twelve month rate which starts from 7.50 per cent per annum and thirty-six month rate from 8.70 per cent per annum are very competitive in today’s environment.”

Birch has over 30 years of experience in the investment banking space initially starting his career at Merryl Lynch in London where he was a bond trader specialising in fixed income securities. He joined Income Direct to assist with its successful launch earlier this year.