Sydney, Australia, June 02, 2026 (GLOBE NEWSWIRE) -- The Reserve Bank of Australia raised the official cash rate to 4.35% on 5 May 2026, its third consecutive increase this year. For the trustees of Australia’s 663,867 self-managed super funds, which hold A$1.06 trillion in assets according to the latest Australian Taxation Office data, a rising cash rate and inflation of 4.6% in the year to March 2026 sharpen a familiar question: how can a fund generate reliable monthly income that responds to the rate environment rather than being left behind by it? To learn more visit https://termplus.com.au/
One option drawing attention among trustees is a fixed-term investment account underpinned by the highly sought-after global private credit sector, offered in Australia by TermPlus, a high-yield fixed-term account powered by Pengana Capital Group. TermPlus is a registered managed investment scheme (ARSN 668 902 323) under Chapter 5C of the Corporations Act, issued by Pengana Capital Limited (AFSL 226 566) and managed by Pengana Credit Pty Ltd. Pengana Capital Group, reported A$3,665 million in funds under management on 30 April 2026.
How the Target Rate is built speaks directly to the rate environment. Each TermPlus account is offered across three investment terms, being one year, two years, or five years, with its own Target Rate calculated as the Reserve Bank of Australia cash rate plus a fixed margin. As at May 2026, with the cash rate at 4.35%, the one-year Target Rate is 7.35%* per annum, the two-year is 8.00%* per annum, and the five-year is 8.50%* per annum, each quoted net of any underlying portfolio fees. The fixed target stays the same for the duration of the chosen term, while the RBA component may move with each Reserve Bank decision, so the Target Rate is designed to respond as the cash rate moves.
Accessibility and cost are part of the same calculation. The minimum balance for a new account is A$2,000, placing the structure within reach of direct investors, as well as smaller SMSF balances, and not only large funds. There is no setup fee, no monthly account fee associated with the accounts, or transaction fee associated with the accounts, and all underlying management costs are factored into the Target Rate, which is quoted net of fees..
The TermPlus portfolio invests in the highly sought-after global private credit asset class through more than 4,500 individually negotiated contractual loans, one of the fastest-growing asset classes in the world over the last 15+ years, and projected by Preqin to reach US$4.5 trillion by 2030. The portfolio is constructed with input from Mercer, a leading global investment consultant with over US$16 trillion in assets under advice as at 30 June 2023, lending to mid-market companies primarily in the United States and Western Europe. As a performance reference point, Pengana reports that, since inception, TermPlus account holders have received 100% of their targeted monthly income payments*.
Income is calculated daily and paid monthly, and trustees decide how it is used. Distributions can be paid into the customer’s nominated bank account each month to support pension payments, or reinvested for compounding within the term. Trustees managing income streams commonly weigh cash-flow timing, liquidity reserves, and the fund’s tax obligations when choosing between the two options, and they track applications, balances, earnings, and tax statements through a user-friendly dashboard, with monthly email confirmations of income earned and distributed. As regulators, including the Australian Securities and Investments Commission, have stepped up their focus on the sector, trustees increasingly weigh portfolio transparency, loan seniority, and manager track record as part of their due diligence.
SMSF and retiree investors feature among the reviewers on the TermPlus reviews page. A retiree identified as Nick said the fixed target above the cash rate gave him “comfort knowing that there is a predictable and reliable level at which my income payments will be bench-marked,” while Patrick P, 65, from New South Wales, said he was “happy with the income rate and my return each month.”
TermPlus has most recently been named a finalist in the Innovation Fund of the Year category at the 2026 Fund Manager of the Year Awards and a finalist in three categories at the 2026 Finnies Awards hosted by FinTech Australia: Excellence in Wealth Management, Most Innovative Fintech Product or Service, and Emerging Fintech Organisation of the Year. It won the 2025 Finder People’s Choice awards in the innovation category, and is rated Approved with a Stable Outlook by BondAdviser and also covered by Lonsec research. For more information visit https://termplus.com.au/is-termplus-safe-and-reliable/
*Any reference to a target rate is current as of today, and is a reference to the investment objective for the relevant account option in TermPlus, which may vary. Importantly, target rates are not guaranteed, and any investment is subject to investment risks. Any forecasted returns may not reflect actual performance and past performance is not a reliable indicator of future performance.
Mercer Consulting (Australia) Pty Limited (ABN 55 153 168 140, AFSL 411 770), which is a wholly owned subsidiary of Mercer (Australia) Pty Ltd (ABN 32 005 315 917) (Mercer Australia) collectively referred to as Mercer. References to Mercer shall be construed to include Mercer LLC and/or its associated companies. ‘MERCER’ is a registered trademark of Mercer Australia.
The issuer of units (Term Accounts) in TermPlus (ARSN 668 902 323) is Pengana Capital Limited (Pengana) (ABN 30 103 800 568, AFSL 226 566). Any advice provided is general in nature and does not take into account your particular objectives, financial situation or needs. Pengana is not a bank and is not regulated by the Australian Prudential Regulation Authority. Investing in TermPlus is not the same as depositing money with a bank. Before investing in TermPlus, consider the PDS, TMD and further details on our website at www.termplus.com.au/important-information/.
Attachment
1300 883 881 Support@termplus.com.au Governor Phillip Tower Level 27/1 Farrer Place Sydney NSW 2000
