Short answer: Yes. An SMSF can invest in Australian bonds if its trust deed and written investment strategy allow it, and the bonds are held in the fund's name, separate from members' own assets. To invest through Candour Capital, the SMSF or its trustee must qualify as a wholesale investor. 143 of the 360 AUD bonds on the range start at A$100,000 and 331 at A$250,000 or less.
| Rule | What it means for bonds |
|---|---|
| Sole purpose test | The investment must be for members' retirement benefits |
| Investment strategy | Bonds must fit the fund's written strategy on risk, return, diversification and liquidity |
| Held in the fund's name | Registered to the trustee for the SMSF, never to a member personally |
| Arm's length | Bought at market prices, not from members or related parties |
The trust deed, identification for the trustees (individuals, or the corporate trustee's directors), the fund's ABN and bank account, and a wholesale certificate from a qualified accountant if the fund qualifies on net assets or income.
Regular interest and repayment at maturity balance shares and property. Fixed rate bonds lock in income; floating rate notes move with interest rates. Interest is taxed at the fund's rate, generally 15% in accumulation phase and nil for assets supporting retirement-phase pensions.
This is general information; ask your accountant and adviser about your fund.
General information only. It does not take into account your objectives, financial situation or needs and is not a recommendation. Investment opportunities through Candour Capital are for wholesale and professional investors only. Read the offer documents and seek professional advice before investing.