Nehemiah is the Managing Director and CEO of Pengana Credit. Pengana have recently launched a platform called TermPlus. These are term accounts with attractive monthly income.
With TermPlus everything is online, you choose the term you’d like to invest for, deposit your funds and choose to reinvest or take the income. Currently the one year account has a rate of 6.60% and the five year is at 7.75%pa.
The funds are invested in global private credit via Mercer. Locally some may compare it to LaTrobe’s term accounts which is invested in domestic mortgages. TermPlus is really good for diversifying away from the Aussie real estate market.
Why is Nehemiah coming on the Property pod? Well, a problem TermPlus solves is where to park cash in between property purchases. This is something Nehemiah has done himself.
What Pete and Nehemiah discussed today
- Nehemiah’s background and career
- What is private credit as an asset class? It’s not traded?
- Who is the team? Group, experience, how long in business? Main shareholders? How much under management?
- What kind of returns can I really expect? How do you get target rates like this – well above the cash rate – without risky or volatile investments? No free lunches – Duration tolerance? What if I need my money out earlier? Is it illiquid? Can I add to or withdraw from my balance during a Term? What happens at the end of the Term?
- Banks have a deposit guarantee. You aren’t a bank. Do you eat your own cooking? Is my capital at risk? Have you ever missed a target rate monthly payment? How safe is my money from market crashes? What are the risks?
- Do I need to be a sophisticated investor to invest in this? Do we need to be able to understand a complicated prospectus?
- Do you have any customer reviews? Where can we go to read more? How do I manage my account? Are there account fees? Fee structure? How do you get paid?
