Pengana launches ‘Australian first’ online term account

Patrick Buncsi

12 June 2024

Pengana Capital Group has unveiled a new income-generating online term account, promising both institutional and retail investors access to diversified and highly rated global private credit.

The newly unveiled TermPlus account leverages Pengana’s existing strategic relationship with Mercer, promising investors “unprecedented access” to the global private credit market – a rarity for Australian term account investors.

“With TermPlus, Pengana has successfully innovated to democratise a new category of highly sought after, typically inaccessible, investment opportunities for income investors,” said Pengana chief executive Russel Pillemer.

“This is further delivered through an easy-to-use product supported by a hugely sophisticated engine and technology platform,” he added.

The account boasts a low entry bar for investors, with a minimum investment of $2,000, and reliable income via floating-rate term accounts.

A one-year term account currently offers returns of 3% over the Reserve Bank of Australia (RBA) cash rate (which currently sits at 4.35%), totalling a target return rate of 7.35% on a one-year term.

This return 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%).

TermPlus investors can opt to receive monthly income paid directly to their bank account or reinvest this income for compounding returns.

“TermPlus unlocks the world of global private credit to deliver highly attractive target rates for all Aussies, via a modern and user-friendly digital platform that allows investors to open a term account within minutes,” said TermPlus managing executive of Dean Weinbren.

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

Weinbren added: “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.

Russel Pillemer, chief executive of Pengana, said the TermPlus account is “a long-overdue offering for Australian savers looking for great target rates from their online term accounts”.

TermPlus is the third product to market from the newly formed Pengana Credit division following its October 2023 launch of a diversified wholesale private credit fund, followed by the IPO of the Pengana Global Private Credit Trust, which is set to list on the ASX in late June 2024.