New Diversified Monthly Income Strategy for SMSF Trustees June 2026 Update – TermPlus Launches High-Yield Fixed-Term Accounts

Key Takeaways:

• Diversification is key as SMSFs look beyond cash products
• Regulators mandate annual reviews of SMSF investment strategies
• SMSF assets have reached A$1.06 trillion across 663,867 funds
• TermPlus offers high-yield fixed-term accounts for monthly income
• Cash allocations have fallen to a record low of 16.3%

Balancing Regulations and Strategy

Australian superannuation regulations require every Self-Managed Super Fund (SMSF) to maintain and review a documented investment strategy at least once a year. The mandate includes addressing asset allocation, liquidity considerations, and both income and capital objectives. With a growing focus on establishing stable monthly returns, SMSF trustees have been examining alternative products to strengthen their income portfolios.

The Decline of Traditional Cash Allocations

According to the latest data from the Australian Taxation Office, the SMSF sector now holds A$1.06 trillion in assets across 663,867 funds. Yet cash and term deposit allocations have reached a historic low of 16.3%—a clear indication that trustees are looking beyond conventional cash products. This shift aligns with the pursuit of more diversified, higher-yielding instruments capable of delivering predictable monthly income.

TermPlus: A New High-Yield Contender

One such instrument gaining attention is TermPlus, a high-yield fixed-term account powered by Pengana Capital Group. The account is part of a registered managed investment scheme (ARSN 668 902 323), issued by Pengana Capital Limited and managed by Pengana Credit Pty Ltd. Established in 2003, Pengana Capital Group reported over A$3.7 billion in funds under management as of May 31, 2026. This pedigree underscores the company’s expertise in alternative investment products, an appealing prospect for SMSF trustees wanting to move away from equity market volatility.

Why Fixed-Term Accounts Matter

With cash allocations sinking, many SMSF trustees seek solutions that can deliver steady monthly yields without tying up funds indefinitely. Fixed-term accounts can address this challenge by offering predictable income streams over set periods—one-year, two-year, or five-year terms—which can be laddered to ensure ongoing liquidity and diversification within an SMSF portfolio.

Positioning for the Future

Against the backdrop of record-low cash deposits, the introduction of products like TermPlus suggests a broader trend in the SMSF sector to seek balanced, reliable ways to generate income. By matching liquidity needs with structured investments, trustees remain compliant with regulatory requirements while smoothing out returns. As the sector continues to grow, more SMSF trustees may explore these high-yield options, signaling a step change in how Australians manage their retirement assets.