Pengana Capital's TermPlus targets 8% on a two-year fixed term while RBA holds at 4.35%. Monthly income is paid from a portfolio of 4,500 private credit loans.
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The shift from saving to spending changes how most retirees evaluate an income product. Volatility is the price of long-term equity returns in accumulation. In drawdown, an uneven payment schedule threatens actual spending decisions. What lands in the bank account each month determines lifestyle, not a 10-year total return figure.
TermPlus, a high-yield fixed-term account run by ASX-listed Pengana Capital Group (ASX: PCG), targets exactly that monthly payment need. As of June 2026, with the Reserve Bank cash rate at 4.35%, TermPlus offers three fixed-term options. The one-year account targets 7.35% per annum (cash rate plus a fixed 3.00%). The two-year targets 8.00% (cash rate plus 3.65%). The five-year targets 8.50% (cash rate plus 4.15%). The margin component locks in for the term. The cash-rate component moves with each RBA decision.
The minimum opening balance is A$2,000. Accounts are available to personal, joint, SMSF, company, and trust structures. Income is calculated daily and paid monthly into a nominated bank account, or reinvested to compound. Since inception, the firm said account holders have received 100% of targeted monthly payments.
The portfolio buys exposure to the global private credit market through more than 4,500 individually negotiated contractual loans. Mercer, the global investment consultant, provides input on portfolio construction. Mercer had over US$16 trillion in assets under advice as of mid-2023.
Term-length choice depends on drawdown horizon, not return maximisation. A one-year term suits someone who wants to keep capital redeployment flexible. The five-year term locks in a higher spread above the cash rate. Some retirees ladder, staggering maturity dates across the three terms to balance access with longer-term income needs.
Nick, a retiree cited in TermPlus case studies, said the fixed margin above the cash rate gave him "comfort knowing that there is a predictable and reliable level at which my income payments will be bench-marked." Patrick P, 65, from New South Wales, has been with the product for about six months. He said he was "happy with the income rate and my return each month."
TermPlus is a finalist for Innovation Fund of the Year at the 2026 Fund Manager of the Year Awards and in three Finnies Award categories: Excellence in Wealth Management, Most Innovative Fintech Product or Service, and Emerging Fintech Organisation of the Year.
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