Richardson says TermPlus is designed to provide exposure to a Mercer-curated portfolio of more than 3500 underlying global private credit loans diversified by region, borrower and strategy. “Our focus is on democratising access,” he says. “Through Mercer’s due-diligence framework and our portfolio construction, we aim to connect Australian investors with institutional-quality global private credit opportunities that were previously difficult to reach.”
How the TermPlus product is structured
Richardson says TermPlus targets monthly distributions linked to the Reserve Bank of Australia (RBA) cash rate, plus a fixed spread that varies by term length. These targets are objectives only, and while Pengana has put in place a highly diversified curated portfolio, as well as built-in layers of account protections, underpinned by its own co-investment alongside TermPlus account holders, capital is not guaranteed. “TermPlus aims to provide regular income by accessing diversified global credit exposures, allowing investors to diversify their income strategies,” he explains.
A disciplined approach
The association with global investment leader Mercer provides oversight at each stage of the process, from manager selection to ongoing monitoring. Mercer’s global team evaluates factors such as default history, recovery rates and portfolio concentration to maintain institutional standards.
“This collaboration allows us to build a diversified portfolio across thousands of underlying loans,” Richardson says. “It’s about professionalising access to global private credit for Australian investors in a transparent, regulated way.”
Looking ahead
Richardson says global private credit could complement diversified portfolios, particularly for investors looking to broaden their income sources. “Our role is to provide researched access to global managers within a governance structure that investors can understand and trust — all through an easy-to-access online account,” he says.
Sponsored by TermPlus For more information visit termplus.com.au.
Information only. Not financial advice. Consider your circumstances and read relevant disclosures and PDS available on the TermPlus website before making investment decisions.
