Blossom expands fixed income offering to SMEs, SMSFs

Blossom, a dedicated fixed-income app for Australian investors debuting in 2021, has announced it will expand its offering to small and midsize enterprises (SMEs) and self-managed super funds (SMSFs).

The ‘Blossom for Business’ and ‘Blossom for SMSF’ offerings give SME and SMSF users access to the Blossom Fund, a diversified and “professionally managed” portfolio primarily consisting of cash, semi-government and government bonds and mortgage-backed securities.

As with its consumer offering, Blossom sets a target of 5.95% per annum in returns for its SME and SMSF customers. This is the ninth jump in targeted returns since the fund’s inception.

Additionally, Blossom for Business and Blossom for SMSF boast “daily earnings and no sign-up, transfer or withdrawal fees”.

Blossom has already signed up seven businesses, totalling $2.7 million in funds under management (FUM),  while Blossom for SMSF so far counts 10 SMSF/Trust investors with $844,000 in FUM.

The wealthtech firm has also hit a new business growth milestone, it said, with $40 million in FUM and 13,000 sign-ups on the platform just two years after its debut.

Blossom said it attributes its rapid growth to local consumers’ “increasing knowledge and understanding of bonds” as well as the rapid hike in policy rates over the last 12 months.

With a string of rate hikes over the last 18 months, Australia’s cash rate currently sits at 4.35%, its highest level in 12 years – a boon for depositors and fixed income investors.

Commenting on the launch of its business and SMSF offering, Gaby Rosenberg, co-founder and chief executive of Blossom said the wealthtech’s expanded offering “reaffirms [its] commitment to democratising access to bonds”.

“Fixed income has offered a ballast of stability amidst high market volatility this year and we have seen increased demand for stable returns,” Rosenberg said.

“This expanded offering has experienced pleasing uptake so far and we look forward to this trend continuing into 2024.”