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Don't let the RBA slash YOUR returns!

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“The Clearmatch [Insurance] Premium Funding Trust is a highly diversified, low-volatility investment with a regular and predictable income stream expected to deliver a risk-adjusted return of 4.2%+ p.a. after fees and losses.^ After this week’s cut, that’s 2.95% above cash rates, and more than double most Term Deposit rates, with an extremely low risk profile”.

This week the RBA slashed interest rates to a record low of 1.25%, delivering what many economists expect to be the first of two rate cuts in coming months. Experts agree that savers and investors will be directly impacted as banks are likely to pass on the cut in full resulting in further falls in already low Term Deposit interest rates.

“Investors would do well to consider their options for yield as rates are unlikely to move up any time soon” said Clearmatch CEO and Founder, Greg Symons. “Whilst the prospect of taking on significantly more risk is not attractive to any conservative investor - whether it be retirees, benevolent institutions or endowments - lower cash rates leave them with no choice but to consider riskier alternatives. Sitting in investments that are safe but yielding close to nothing does not deliver the outcome they need. In fact, after inflation, some investors are now going backwards in real dollar terms”.

“The Clearmatch [Insurance] Premium Funding Trust is a highly diversified, low-volatility investment with a regular and predictable income stream expected to deliver a risk-adjusted return of 4.2%+ p.a. after fees and losses.^ After this week’s cut, that’s 2.95% above cash rates, and more than double most Term Deposit rates, with an extremely low risk profile”.

“Many investors unfortunately react to lower rates by taking on significantly more risk such as increasing their exposure to growth assets. It is possible however, to access higher yields in very secure credit assets, such as investing in Insurance Premium Funding Loan Notes”.

“The good news for wholesale investors ‘feeling the pinch’ from this rate cut is that the Clearmatch Premium Funding Trust remains open but is filling fast” says Mr Symons.

^ Returns dependent on investor mandate, and relevant risk factors. The information in this article is general information only and is not based on the objectives, financial situation or needs of any particular investor. In deciding whether to acquire, hold or dispose of the product you should obtain a copy of the Information Memorandum and consider whether the product is appropriate for you. A copy of the Information Memorandum is available by calling our Investor Services team on 1300 644 044 or emailing on investors@clearmatch.com. The Clearmatch Premium Funding Trust is open to Wholesale Investors only. This article has been prepared by Clearmatch Australia Pty Ltd (ACN 602 464 148) (‘Clearmatch’). Clearmatch is an authorised representative of Ironbark Asset Management (Fund Services) Limited ABN 63 116 232 154 AFSL 298626.