Pengana Capital Group has introduced an online term account solution underpinned by a diversified portfolio of highly rated global private credit, named TermPlus.

TermPlus aims to deliver reliable income via floating-rate term accounts, with a minimum investment of $2000.

Pengana said it believes TermPlus is poised to attract significant interest from both retail and institutional investors.

TermPlus target rates are calculated as a fixed spread above the Reserve Bank of Australia’s (RBA) cash rate. For a one-year term account, that equals RBA cash rate plus 3% net of fees, which currently totals a target rate of 7.35% on a one-year term.

This increases to 8% p.a. for a two-year term (RBA + 3.65%), and 8.5% p.a. for a five-year term (RBA+4.15%).

Investors have the choice to receive monthly income paid directly to their bank account or can elect to reinvest the income for compounding returns.

Pengana managing executive of TermPlus Dean Weinbren said the product would help unlock the world of global private credit to deliver highly attractive target rates.

“TermPlus caters to an extensive list of investor types, including personal accounts, joint accounts, child accounts, SMSFs, companies, and unregulated trusts,” Weinbren said.

“Historically, term accounts have been backed by the Australian credit market. TermPlus breaks this mould by tapping into the world of global private credit to deliver its attractive target rates.

“We are excited to take an asset class which is in high demand yet difficult to access and make it available to anyone who is looking to have their savings work for them.

“The TermPlus platform itself is totally unique and offers investors a great range of account features.”

Pengana Capital chief executive Russel Pillemer said Pengana’s strategic relationship with Mercer allowed the group to provide its investors with unprecedented access to the asset class.

“TermPlus is a long-overdue offering for Australian savers looking for great target rates from their online term accounts,” he said.

“With TermPlus, Pengana has successfully innovated to democratise a new category of highly sought after, typically inaccessible, investment opportunities for income investors. This is further delivered through an easy-to-use product supported by a hugely sophisticated engine and technology platform.”

TermPlus is the third product to market from the newly formed Pengana Credit division, led by Nehemiah Richardson.

Pengana Credit’s first product launch came in October 2023 via a diversified wholesale private credit fund, followed by the successful IPO of the Pengana Global Private Credit Trust, which will list on the ASX in late June 2024 under the ticker PCX.

All three products leverage Pengana’s global private credit master trust managed by Pengana in association with Mercer as the investment consultant across the portfolio.