Sydney, Australia, June 02, 2026 (GLOBE NEWSWIRE) -- With the Reserve Bank of Australia cash rate at 4.35% and annual inflation running at 4.6% in the year to March 2026, self-managed super fund trustees are under pressure to find income that keeps pace with the rising cost of living. Australian Taxation Office data shows SMSF allocations to cash and deposit products have fallen to 16.3% of sector holdings, a record low, as trustees look beyond traditional cash products for the income side of the portfolio. One category drawing attention is fixed-term investment accounts underpinned by global private credit, an asset class that has reached US$3.5 trillion globally, according to the Alternative Credit Council's Financing the Economy 2025 report, and has been one of the fastest-growing asset classes in the world over the last 15+ years. To learn mroe visit https://termplus.com.au/term-account-smsf/
TermPlus, a high-yield fixed-term account powered by Pengana Capital Group, sits in that category. It 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.
Australian superannuation regulations require SMSFs to maintain and regularly review an investment strategy covering asset allocation, liquidity, diversification, and income and capital objectives. Within that framework, trustees may treat a fixed-term investment account as a fixed income, alternative income, or diversification allocation. For SMSF trustees, this positions TermPlus as one income component sitting alongside other asset classes within a broader investment strategy to deliver superior diversification.
TermPlus accommodates a range of investor structures, including SMSFs, alongside personal, joint, child, company and trust accounts. The minimum opening balance for a new account is just A$2,000. There is no setup fee, no monthly account fee, or transaction fee associated with the accounts, and all underlying management costs are factored into the Target Rate, which is quoted net of fees.
Trustees can open one or more Term Accounts across three investment terms: one year, two years, or five years. Each has its own Target Rate, calculated as the Reserve Bank of Australia cash rate plus a fixed spread. As at May 2026, with the RBA cash rate at 4.35%, the one-year Target Rate is 7.35%* per annum (RBA cash rate plus a fixed 3.00%), the two-year Target Rate is 8.00%* per annum (RBA cash rate plus a fixed 3.65%), and the five-year Target Rate is 8.50%* per annum (RBA cash rate plus a fixed 4.15%). The fixed spread target stays the same for the duration of the chosen term, while the RBA component may move with each Reserve Bank decision. Many SMSFs use a staggered maturity, or "laddering", approach across the three terms to create periodic liquidity events while keeping income targets benchmarked above the cash rate. To learn more visit https://termplus.com.au/insights-news/insights/retirement/smsf-allocation-framework-fixed-term-investment-accounts/
Income is calculated daily and paid monthly. SMSF trustees can have those monthly distributions paid directly into the fund's nominated bank account, which suits funds managing regular pension payments, or reinvest them for compounding inside the term. Trustees manage everything through a user-friendly dashboard tracking applications, balances, earnings and tax statements, with monthly email confirmations of income earned and distributed.
Reliability of income is supported by three built-in layers of protection, underpinned by a Support Account, a co-investment alongside account holders#. In short, account holders are paid first: through the Priority Income Entitlement, they have first claim on income the Support Account has earned over the prior 12 months if returns fall short; Income Stabilisation keeps the monthly income target calculated on the full invested amount; and Savings Support provides an end-of-term top-up of up to 5% of the Invested Amount to cover any shortfall. Pengana reports that, since inception, TermPlus account holders have received 100% of their targeted monthly income payments*.
The portfolio behind those payments invests in the highly sought-after global private credit asset class through more than 4,500 individually negotiated contractual loans, constructed with input from Mercer, a leading global investment consultant with over US$16 trillion in assets under advice as at 30 June 2023. The underlying loans are made to mid-market companies, typically earning between US$50 million and US$250 million, primarily in the United States and Western Europe with some Australian exposure. As an unlisted asset class, global private credit has generally been uncorrelated with listed stock markets, and currency exposures are hedged back to Australian dollars.
SMSF investors feature among the reviewers on the TermPlus reviews page. David C, 78, from South Australia, said he has opened four accounts across one-year and two-year terms to stagger maturity dates, reinvesting the monthly payments, and considered the product "an excellent means of diversifying the investments held in my SMSF." Another reviewer, Charles S, said TermPlus was "great for your SMSF," citing the application process and monthly returns.
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, including Excellence in Wealth Management, Most Innovative Fintech Product or Service, and Emerging Fintech Organisation of the Year. In addition, TermPlus won the 2025 Finder People's Choice awards in the innovation category. The product is also rated Approved with a Stable Outlook by BondAdviser and is also covered by Lonsec research. For more information visit https://termplus.com.au/
* 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.
#Refer to the PDS for full details of TermPlus product features, including the Support Account.
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 particular objectives, financial situation or needs. Before investing in TermPlus, consider the PDS, TMD and further details on their website at www.termplus.com.au/important-information/.
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