Better Returns
from Your Savings
Choose our fixed-term accounts,
with Target Rates from:
Easy online application
Linked to the RBA cash rate
Income paid monthly
As featured in:
Powered by Pengana Capital Group, with 20+ years of investment excellence, in association with Mercer.
TermPlus is not a bank. We exist to unlock the ‘big money advantage’ for everyday Australians, and deliver monthly income payments, via access to a highly-diversified, multi-manager, multi-strategy, portfolio of global private credit funds managed by highly rated private credit fund managers primarily in the US, and Europe.
Term Lengths and Target Rates
How much do you want to deposit?
(includes reinvested Target Total Income)
How would you prefer to receive your Income?
my income
bank monthly
- Earns income daily
- Paid to you monthly
- Built-in Savings Support
(includes reinvested Target Total Income)
How would you prefer to receive your Income?
my income
bank monthly
- Earns income daily
- Paid to you monthly
- Built-in Savings Support
(includes reinvested Target Total Income)
How would you prefer to receive your Income?
my income
bank monthly
- Earns income daily
- Paid to you monthly
- Built-in Savings Support
Target Rates are variable over the course of the Term, linked to the RBA cash rate plus a fixed spread.
Or try our Income Calculator
* The quoted Target Rate is based on a minimum investment term and is current as at today. The Target Rate is merely an objective, which may change during the course of the Term. Any revised Target Rate for each Term will be detailed on the website: www.termplus.com.au. The Target Rate is not guaranteed, is not a forecast, and may not be achieved. Account Holders’ capital is not guaranteed. Account Holders may lose some or all of their capital invested in TermPlus. An investment in a Term Account is not a bank deposit or a term deposit with a bank. Past performance is not a reliable indicator of future performance and may not be repeated. Withdrawal rights are subject to liquidity and may be delayed or suspended (see the PDS).
Accounts Are for
All Sorts of Savings
Start earning with balances from $2,000
Personal accounts
Joint accounts
Child accounts
Companies & trusts
SMSF investors
It's About Term!
Earn up from the cash rate
Our Target Rates are variable over the course of the Term, linked to the RBA cash rate plus a fixed spread.
Choose how you’re paid
Have your monthly Income paid to your bank, or reinvest it for compound returns. It’s all too easy.
Compound your earnings
Built-in layers of account protection
We support your Term Accounts with 3 distinct built-in layers of protection.
Income Calculator
*Calculations provided are for indicative purposes only and have been subject to rounding adjustments. The above quoted Target Rates are those current as at today and are merely objectives, which may change during the course of the Term. Please refer to the Product Disclosure Statement (‘PDS’) for TermPlus for an explanation of the Target Rates and other terms used on this website. Any revised Target Rate for each Term will be detailed on the website: www.termplus.com.au and applied to both new and existing Term Accounts. There is a risk that TermPlus may not be successful in achieving the Target Rates. Whilst TermPlus Accounts provide for Priority Income Entitlement, Income Stabilisation and Savings Support (‘Support Mechanisms’) to support the delivery of TermPlus Account objectives, none of Pengana Capital Limited (and Pengana Credit Pty Ltd) and their associates, shareholders, agents, managers, advisers or delegates guarantee the performance of TermPlus. Account Holders’ capital is not guaranteed. Like all investments, even with Support Mechanisms, TermPlus’ investments carry risks, and if these risks eventuate, Account Holders may lose some or all of their capital invested in TermPlus. The Target Rate is not guaranteed, is not a forecast, and may not be achieved. The Target Rates are calculated off the RBA Cash Rate plus a fixed percentage spread. The RBA Cash Rate can change from time to time. An investment in an Account is not a bank deposit or a term deposit with a bank. Past performance is not a reliable indicator of future performance. The Target Rate is a net amount. The financial product described herein will be issued by Pengana Capital Limited in its capacity as trustee of TermPlus ARSN 668 902 323. Before deciding whether to acquire, or to continue to hold the product, you must read the PDS available on this website and consider whether the product is right for you. You should also read the Target Market Determination which describes who the financial products mentioned herein, may be appropriate for.
Getting Started Is Easy
1. Verify your details
Confirm your identity and select your account type.
2. Tailor your Term
Choose your investment amount, Term and Income preference.
3. Deposit your funds
See your savings go to work for you, month-to-month.
Your Money, Making Money
- Let your savings generate wealth for you.
- Unlock monthly passive income.
- Designed with the aim of providing stability of capital and reliability of Income.
Make your money work harder!
We Aim to Please
Backed by industry-leading partners with decades of experience and global reach, TermPlus delivers a robust solution for putting your savings to work.
20+ years investing for Australians
“At last, there’s an option that makes me feel sure about how I handle my extra savings on behalf of my kids.”
Candy W, 41 (NSW)
“Moving into retirement, I have a more predictable stream of monthly income that I can rely on.”
Jeff F, 72 (NSW)
Your Data Is Important to Us
Two-factor authenticated accounts
KYC/KYB/AML compliant
Data encryption
No fuss
No fuss
Built with You in Mind
Created by Pengana Capital Group and powered by Mercer, TermPlus taps into the dynamic world of global Private Credit to deliver leading Term Accounts with built-in layers of protection for its customers.
- Get more from your money
- Save for retirement
- Plan your next big getaway
- Make the home extension happen
- Put away for a rainy day
- Get closer to that dream purchase
- Fund your retirement lifestyle with generous and reliable Target Rates
*Source: BCG consumer sentiment survery September 2023.
Supporting Your Savings
We’re committed to helping you with your financial journey, which is why we have 3 distinct built-in layers of protection for every TermPlus Account.
These layers of protection have been designed with the objective of offering reliability of Income, and stability of capital, to Account Holders.
Our commitment to you.
The Support Account is an investment alongside Account Holders put in place to underpin the 3 distinct built-in layers of protection provided for your savings.
The Support Account cedes priority of both its capital and income to account holders, in order to further support customer capital and income.
The value of the Support Account will be equal to at least 5% of the aggregate value of the total Invested Amount of all Term Accounts (less any Savings Support payments in the event they are made to Term Account holders – none have been needed to date).
Customer priority over the income generated by the Support Account, if needed.
Your Income comes first.
Because we’re committed to supporting your saving journey, we have built in a Priority Income Entitlement mechanism to TermPlus.
The Support Account, just like TermPlus Customer accounts, earns income on its invested balance. Any income the Support Account has generated in the last 12 months is available to top up your monthly Income for any given month, if returns fall short. Think of it as an extra income pool that works to maintain Target Rates and returns for your account in the event of an earning deficit.
Anchored target rate calculations. Because reliability matters.
In the event that the value of your Term Account balance was to decrease during the course of your Term, your Income for subsequent months will continue to be calculated based on the total amount you have invested in your account, inclusive of any Income you’ve reinvested.
The monthly payment of accrued Target Rate Income is not guaranteed and is subject to TermPlus generating sufficient return.
A top-up payment of up to 5% of your total invested amount available at the end of your term. A layer of protection for your savings.
Our money where our mouth is.
In addition to the two layers of Priority Income Entitlement and Income Stabilisation, TermPlus provides an added layer of protection that we call ‘Savings Support’ which aims to keep your savings intact.
During the Term: if the Closing Balance of your Term Account on any given month falls below the amount you have invested (including your initial investment plus any reinvested income), any excess return for the Fund (after meeting all Target Rates for the month) is allocated pro-rata to all accounts until all Term Account balances have been restored to their Invested Amounts.
End of Term: if, at the end of an Account Holder’s Term (‘Maturity’), the Closing Balance of a Term Account plus Income paid or accrued to the Account Holder over the Term (‘Final Value’) is any less than the total Invested Amount (including reinvested income), our Savings Support then leaps into action, to provide a layer of protection. We will make a Savings Support payment to cover any shortfall of up to 5% of the Invested Amount towards restoring the Final Value of the Account back up to the Invested Amount.
We have made a commitment that the Support Account will be maintained at least at a minimum balance of 5% of the aggregate value of the total Invested Amount of all Term Accounts, less any Savings Support payments that have been made. Savings Support cover will be applied to the extent the Support Account has sufficient funds.
Frequently Asked Questions
You have two choices on how to receive your monthly Income.
- Reinvest: Add it back into your account balance to earn additional Income. Reinvested Income will receive the same Target Rate, Maturity Date and layers of Protections as your Opening Balance.
- Pay to bank: We pay it to your linked bank account every month.
Simply make your election in your account dashboard.
You can change your election at any time during the month. Just make sure you make your election at least 5 business days before month-end for your preference to be updated, otherwise, it will apply to the one after that.
To keep Target Rates relevant, our accounts rates aim to deliver a set amount above the Reserve Bank of Australia’s Official Cash Rate (“Cash Rate”). Each Term has a specific Income objective calculated by reference to the Cash Rate, plus a fixed spread. If the Cash Rate changes, our Target Rates change in line with the Cash Rate.
Target Rates are not guaranteed, are not forecasts, may not be achieved . However, private credit loans are contractual by nature, and contain interest and principal repayment terms, as well as lender protections which the borrower must meet. This means the lender has predictable interest payments and protections that work to minimise any potential loss. As the private credit loans underpinning the TermPlus portfolio are contractual in nature, there is a built-in level of certainty around future cashflows, which can also include characteristics such as floating interest rates and capital security.
Your Income comes first.
To provide further reliability of Income, we invest our own money alongside Account Holders, in what we call a Support Account.
The Support Account seeks to provide reliable Income via two layers of protection.
1. Priority Income Entitlement
The Support Account, just like customer accounts, earns income on its invested balance. Because we’re committed to supporting your saving journey, TermPlus Customers have priority over this income if ever it’s needed to support target rates. Think of it as an extra income pool that works to support Target Rates and returns for your account in the event of an earnings deficit.
2. Income Stabilisation
In the event that the value of your Term Account balance decreases for any given month, we will continue to calculate your Target Rate Income on the total Invested Amount (including any reinvestments of past Income).
The combination of the structural characteristics of the underlying TermPlus assets, and the TermPlus layers of account protections, are core to our customer first’ approach to delivering exceptional Term Accounts.
This customer-first approach means more stable and reliable Income.
The monthly payment of accrued Income is not guaranteed and is subject to TermPlus generating sufficient return.
TermPlus delivers unique access to a diversified portfolio offering by robust characteristics (as outlined below), and has been designed with 3 distinct built-in layers of account protection to attract investors.
READ THE FULL OVERVIEW HERE >>
Layers of protection built-in to TermPlus Accounts
In addition to the structural and contractual protections in the global private credit sector (as outlined below), and the added risk minimisation that comes from our high level of diversification and investment selection, TermPlus holds its own investment in TermPlus called the Support Account, which underpins 3 additional built-in layers of protection for TermPlus account holders.
The Support Account
Our commitment to our customers.
The Support Account is an investment alongside Account Holders put in place to underpin the 3 distinct built-in layers of protection provided for your savings.
The Support Account cedes priority of both capital and income to account holders with the aim of providing additional stability and reliability to TermPlus customers.
Priority Income Entitlement
Customer priority over the income generated by the Support Account if needed.
Think of it as an extra income pool that works to support Target Rates and returns for your account.
5% Saving Support
A top-up payment for up to 5% of your total invested amount at the end of your term.
As discussed above, the likelihood of negative performance, and therefore a decline in an account holder’s capital balance, is very low. However, to provide further protection, any decline in the amount you invest in TermPlus is eligible to be topped up by the Support Account at Maturity, up to a maximum of 5% of the total amount you invested (including any Income you have reinvested over the course of your term, but not including, and offset by, any Income already paid out to you during the course of your term).
Income Stabilisation
Anchored target rate calculations.
In the event that the value of your Term Account balance decreases for any given month, we will continue to calculate your Target Rate Income on the total Invested Amount (including any reinvestments of past Income).
Key characteristics of the TermPlus master portfolio
Contractual Nature. TermPlus has predictable interest payments and protections that work to minimise any potential loss as a result of the loans underpinning the TermPlus portfolio being contractual in nature. This provides a built-in level of certainty around future cashflows, which can also include characteristics such as floating interest rates.
Diversification. The TermPlus portfolio is made up of over 2,000 individual loans, and is constructed by global investment leader Mercer. Mercer has over US$16 trillion in assets under advice (latest figure available as at 30 June 2023). The 2,000 loans provide a great level of diversification which adds additional stability to capital and returns by spreading investments across non-cyclical industries and reducing concentration risk in any borrower, market, region or sector.
Seniority. Private credit loans encompass both Senior Debt and Junior / Mezzanine Debt. These loan types typically make up between 45% to 70% of a company’s capital structure, with the remaining 30 to 55% typically being equity. Should a company experience financial difficulties or fail, the senior parts of the capital structure have priority over the assets. Senior Debt holders are entitled to the first-priority claim on assets, and all debt holders have priority over equity holders.
All other things being equal, this implies that a company would have to lose between 30% to 55% of its value before private credit loans would experience any capital losses.
_______
We take a truly customer-first approach whereby TermPlus will only receive any return once account holders are delivered their full expected outcomes.
The combination of the structural characteristics of the underlying TermPlus assets, and the TermPlus layers of account protections, are core to our customer-first approach to delivering exceptional Term Accounts.
READ THE FULL OVERVIEW HERE >>
A comprehensive summary of the risks to consider when investing in TermPlus is set out in the TermPlus PDS.
1. Returns in USD. 10 year period from 1 July 2013 to 30 June 2023. Sources: S&P (S&P 500 Total Return Index), Bloomberg (Bloomberg US Corporate Total Return Value Unhedged USD), Burgiss (Burgiss – Private Debt (North America)), and Thomson Reuters Datastream (ICE BofAML US High Yield Master II, S&P Leveraged Loan). S&P, Bloomberg, Burgiss and Thomson Reuters have not provided consent to the inclusion of statements utilising their data. No assurance can be given that any investment will achieve its objectives or avoid losses. Past performance is not necessarily a guide to future performance.
2. Sources:
• USD$ Cumulative Default Rate 1995 – 2021: S&P LCD & CreditPro (1995 to 2021), as at 31 December 2021. The cumulative default rate is the percentage of commercial borrowers within a certain category that have defaulted on their obligations by a specific point in time. It is the total number of defaults accumulated over a period, expressed as a percentage of the initial loan pool. This metric helps investors and analysts to assess the historical default likelihood of borrowers within a specific category over different timeframes. The S&P LCD cumulative default rate has a one-year lag since it assumes a loan will not default within one year of origination. Past performance is not a reliable indicator of future performance and may not be repeated.
• USD$ Average Annual Recovery Rate 1995-2022: S&P LCD & CreditPro (1995 to 2022). The Annual Recovery Rate is the average percentage of the loan principal amount recovered by lenders following a default event within a specific year. This metric provides insight into the expected loss in case of a default, showing how much lenders might recoup on their investments on average. Middle market loans defined as those <$500m in size. Past performance is not a reliable indicator of future performance and may not be repeated.
S&P LCD & CreditPro have not provided consent to the inclusion of statements utilising their data. No assurance can be given that any investment will achieve its objectives or avoid losses. Past performance is not necessarily a guide to future performance.
3. Source: Private credit annualised yields to maturity are estimates based on Mercer analysis on the basis that such loans are held to maturity. Mercerhas not provided consent to the inclusion of statements utilising their data. No assurance can be given that any investment will achieve its objectives or avoid losses. Past performance is not necessarily a guide to future performance.
Pengana Capital Limited (ABN 30 103 800 568, AFSL 226566) (“Pengana”) is the issuer of units (“Term Accounts”) in TermPlus (ARSN 668 902 323) (“TermPlus”). The offer of Term Accounts in TermPlus will be made in the Product Disclosure Statement for TermPlus (“PDS”). The PDS and the Target Market Determinations for TermPlus can be obtained by contacting TermPlus on 1300 883 881 or from www.termplus.com.au. A person should consider the PDS in deciding whether to acquire, or to continue to hold, Term Accounts in TermPlus. This document was prepared by Pengana and does not contain any investment recommendation or investment advice.
TermPlus offers broad exposure to the Global Private Credit asset class, investing overseas in Western Europe and the US, and also to a lesser extent in Australia. The asset class exposure is diversified by Underlying Manager, strategy, geography, sector, credit quality and type of instrument.
The performance of, or the repayment of capital, or income invested in TermPlus is not guaranteed. An investment in TermPlus is subject to investment risk including a possible delay in repayment and loss of income and principal invested. Past performance is not a reliable indicator of future performance and may not be repeated.
Mercer Consulting (Australia) Pty Ltd (MCAPL) ABN 55 153 168 140, Australian Financial Services Licence #411770.
‘MERCER’ is a registered trademark of Mercer (Australia) Pty Ltd ABN 32 005 315 917.
This document has been prepared without taking into account any person’s investment objectives, particular needs or financial situation. It is general information only and should not be considered investment advice and should not be relied on as an investment recommendation. Before acting on any information contained within this document a person should consider the appropriateness of the information, having regard to their objectives, financial situation and needs.
Certain expressions used in this document have defined meanings which are in the PDS.
Easy. Quick. Seamless. Your TermPlus Account has its own easy-to-use account dashboard from where you can manage and track your applications, get an overview of your accounts, track your earnings and access tax statements etc.
The Target Rate is expressed on an annualised basis, net of any fees and costs.
The underlying master portfolio of global investments that is used to achieve the Target Rates paid to TermPlus accounts pays fees to underlying fund managers. These fees may impact the Income paid by TermPlus.
For a breakdown of fees and costs please refer to the PDS.
Your Income payments are based on the starting balance of your Account. You have the option of adding Income payments to your account balance, which means that they will accrue additional Income in following months. If you would like to add new funds to earn Income, this can be done by opening another Term Account using the ‘add account’ button on your dashboard. As this is a ‘term based’ account, funds cannot be withdrawn until the Term is over.
You have 2 choices as to what is to occur at the end of the Term.
- Rollover into a new Term
- Withdraw your balance to be paid back into your bank account, this would include any income reinvested through the course of your term account.
You also have the option to do a partial withdrawal and partial rollover.
End of term elections need to be made by the due date that is noted on your account in the customer dashboard.
Need to Know More?
Click here to contact our client service or simply call 1300 883 881 for assistance.
