Investors shift towards non-bank alternatives
Updated: Nov 13, 2019
The Reserve Bank of Australia has held the official cash rate at an all-time low of just 1.0% and thousands of Australian investors, including retirees, self-managed superannuation funds (SMSFs), companies and individuals, are now left stranded earning less than 2.0% on their idle cash.
Low rates have taken their toll - for many investors the fall in rates over the past 8 years has led to:
• less retirement income to live off
• fewer family holidays
• reduced discretionary spending
• downsizing of the family home
• taking risks with volatile investments (e.g. stock market)
• …and in many instances financial duress
We have heard of these frustrations and many more from Australian investors.
Investors are forced to seek alternatives
For many, earning a low rate of return on their idle money is neither desirable nor sustainable, particularly given that inflation is currently higher (1.6% per annum) than the cash rate (1.0% per annum).
Investors are now forced to look for alternatives to keep ahead financially and maintain their lifestyles. Otherwise they risk going backwards by doing nothing.
The shift towards non-bank alternatives
Low interest rates have resulted in much-needed innovation within the financial services industry to fill the gaps left by the banks, both in terms of investment products and also deployment of capital. Non-bank alternatives have created wide opportunities for investors and companies.
Note: since the global financial crisis in 2008, many banks have tightened their lending policies, meaning that many strong businesses have been unable to secure bank funding, creating a substantial gap in the market for non-bank alternatives to provide a conduit between borrowers and investors seeking consistent income.
If you are considering making the switch to a non-bank alternative to achieve a better return on your idle money, remember that all investments carry a level of risk and you should be comfortable with the investment strategy of the company you choose to invest with.
How Mayfair Platinum can help
Mayfair Platinum is a dedicated investor-facing division of the Mayfair 101 group, an international investment and corporate advisory group with offices in Melbourne, Sydney and London. We specialise in providing qualified investors with income-generating investment products to help them keep ahead in the low rate environment.
Qualified investors can access term-based investment options starting from AU$100k and ranging from 3 months to 5 years, with the option of monthly interest payments. We accept investment from individuals, SMSFs, companies and trusts.
A forward-thinking investment strategy
Mayfair 101 Ltd is licensed by the Financial Conduct Authority in the United Kingdom, and group members hold assets in 11 countries across industries including wealth management, corporate bonds, business credit, fintech, and real estate, including a focus on investments that can bring about positive social change.
Creating win-win outcomes
Whether you choose to move your money to us or another alternative, interest rates appear unlikely to increase for some time. We are big believers in creating win-win outcomes for our investors as we have considerable ‘skin in the game’ with each investment.
Mayfair Platinum is also focused on providing investors with certainty in relation to their capital and interest payments; after all, certainty helps drive investor confidence.
To see if you qualify for Mayfair Platinum’s investment options, simply visit www.mayfairplatinum.com.au or call our friendly Australia-based team on 1300 794 460. We answer new enquiries within 2 business hours as we appreciate your time is valuable.
* For wholesale investors only - not available to retail investors. Terms, conditions and risks apply.