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TermPlus Fixed-Term Accounts Offer Up To 8.50% Per Annum Five-Year Target Rate for SMSF Trustees - Australia's SMSF Sector Now Holds A$1.06 Trillion Across 663,867 Funds
Sydney, AU, May 19, 2026 (GLOBE NEWSWIRE) -- For the trustees of Australia's 663,867 self-managed super funds, the income side of the portfolio has come under closer scrutiny. The latest Australian Taxation Office data shows the SMSF sector held A$1.06 trillion in assets across roughly 1.22 million members as at December 2025. Cash and term deposit allocations have fallen to 16.3% of the sector's holdings, a record low, while exposure to unlisted trusts and other income-generating structures has continued to grow.
One product available to SMSF trustees in this segment is TermPlus, a high-yield fixed-term account powered by Pengana Capital Group. TermPlus is a registered managed investment scheme (ARSN 668 902 323) under Chapter 5C of the Corporations Act, issued by Pengana Capital Limited (AFSL 226 566) and managed by Pengana Credit Pty Ltd. Pengana Capital Group, the ASX-listed parent (ASX: PCG), was founded in 2003 and reported A$3,665.63 million in funds under management at 30 April 2026.
TermPlus is designed to accommodate a range of investor structures, including SMSFs, alongside personal, joint, child, company and trust accounts. The minimum opening balance for a new account is A$2,000. There is no setup fee, no monthly account fee, or transaction fee associated with the accounts, and all underlying management costs are factored into the Target Rate, which is quoted net of fees.
Trustees can open one or more Term Accounts across three investment terms: one year, two years, or five years. Each class has its own Target Rate, calculated as the Reserve Bank of Australia cash rate plus a fixed spread. As at May 2026, with the RBA cash rate at 4.35%, the one-year Target Rate is 7.35% per annum (RBA cash rate plus a fixed 3.00%). The two-year Target Rate is 8.00% per annum (RBA cash rate plus a fixed 3.65%), and the five-year Target Rate is 8.50% per annum (RBA cash rate plus a fixed 4.15%)#. The fixed spread target stays the same for the duration of the chosen term. The RBA component may move with each Reserve Bank decision.
Income is calculated daily and paid monthly. SMSF trustees can have those monthly distributions paid directly into the fund's nominated bank account or elect to have them reinvested for compounding. Trustees access the account through a user-friendly dashboard that tracks applications, account balances, earnings, and tax statements, with monthly convenient email confirmations of income earned and distributed.
The TermPlus portfolio invests in the highly sought-after global private credit asset class through more than 4,500 individually negotiated loans. Global private credit has been one of the fastest growing asset classes in the world over the last 15+ years, due to it’s appealing return profile, but has largely been out of reach for everyday investors, until products like TermPlus have come along to overcome many of the barriers for democratisation of the asset class. The portfolio is constructed with input from Mercer, a leading global investment consultant with more than 2,000 investment professionals and over US$16 trillion in assets under advice as at 30 June 2023. The underlying loans are made to mid-market companies, typically with annual earnings between US$50 million and US$250 million, primarily in the United States and Western Europe, with some Australian exposure. Loans are contractual, and currency exposures are hedged back to Australian dollars.
For SMSF trustees, this framing positions TermPlus as one income component sitting alongside other asset classes within a broader investment strategy to deliver superior diversification.
SMSF investors are among the reviewers featured on the TermPlus reviews page. David C, 78, from South Australia, said he has opened four accounts across one-year and two-year terms to stagger maturity dates, choosing to reinvest the monthly payments, and considered the product "an excellent means of diversifying the investments held in my SMSF." Another reviewer, Charles S, said TermPlus was "great for your SMSF," citing the application process and monthly returns.
TermPlus has most recently been named a finalist in the Innovation Fund of the Year category at the 2026 Fund Manager of the Year Awards, Australia's largest independent fund awards program, and a finalist in three categories at the 2026 Finnies Awards hosted by FinTech Australia, including Excellence in Wealth Management, Most Innovative Fintech Product or Service, and Emerging Fintech Organisation of the Year. In addition, TermPlus won the 2025 Finder People's Choice awards in the innovation category. The product is also rated Approved with a Stable Outlook by BondAdviser and is also covered by Lonsec research. For more information visit https://termplus.com.au/
# Any reference to a target rate is current as of today, and is a reference to the investment objective for the relevant account option in TermPlus, which may vary. Importantly, target rates are not guaranteed, and any investment is subject to investment risks. Any forecasted returns may not reflect actual performance and past performance is not a reliable indicator of future performance.
Mercer Consulting (Australia) Pty Limited (ABN 55 153 168 140, AFSL 411 770), which is a wholly owned subsidiary of Mercer (Australia) Pty Ltd (ABN 32 005 315 917) (Mercer Australia) collectively referred to as Mercer. References to Mercer shall be construed to include Mercer LLC and/or its associated companies. ‘MERCER’ is a registered trademark of Mercer Australia.
The issuer of units (Term Accounts) in TermPlus (ARSN 668 902 323) is Pengana Capital Limited (Pengana) (ABN 30 103 800 568, AFSL 226 566). Any advice provided is general in nature and does not take into account particular objectives, financial situation or needs. Before investing in TermPlus, consider the PDS, TMD and further details on their website at www.termplus.com.au/important-information/.
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1300 883 881 Support@termplus.com.au Governor Phillip Tower Level 27/1 Farrer Place Sydney NSW 2000 Australia
TermPlus Fixed-Term Accounts
Up To 8.50% Per Annum Five-Year Target Rate for SMSF Trustees
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