Features and benefits
Bonds offer investors a more predictable return when compared to riskier asset classes, such as equities, and can provide an important element of diversification to an investment portfolio.
Direct investment in bonds generally offers:
While bonds are considered to be less risky than many other investments, they do carry a level of risk:
All bonds offered through Citibank have been independently assessed as being of investment-grade quality, from comparatively stable issuers.
Bonds are essentially loans that pay a defined rate of interest over a given period of time, at the end of which the loan is repaid.
You can earn a return from bonds in two ways:
Bonds are available to wholesale investors only. The minimum investment amount is $50,000 to wholesale investors who have an accountant's certificate certifying the investor had a minimum income of AU$250,000 or more p.a. in each of the previous two years or has net assets of at least AU$2.5 million.
Any advice is general advice only. It was prepared without taking into account your objectives, financial situation, or needs. Before acting on this advice you should consider if it's appropriate for your particular circumstances. You should also obtain and consider the relevant Product Disclosure Statement and terms and conditions before you make a decision about any financial product, and consider if it’s suitable for your objectives, financial situation, or needs. Investors are advised to obtain independent legal, financial, and taxation advice prior to investing.
Investments are not deposits or other obligations of, guaranteed, or insured by Citibank N.A., Citigroup Inc., or any of their affiliates or subsidiaries, or by any local government or insurance agency, and are subject to investment risk, including the possible loss of the principal amount invested. Investors investing in funds denominated in non-local currency should be aware of the risk of exchange rate fluctuations that may cause a loss of principal. Past performance is not an indicator of future performance. Investment products are not available to US people and may not be available in all jurisdictions.
All investments are subject to risks and can change in value. Citi provides access to investment grade bonds. However, bonds can vary in risk depending on the credit worthiness of the issuer. The capital value of a bond can rise or fall depending on interest rate movements or the interest rate outlook. A bond's capital value can increase or decrease before maturity based on current interest rates. Generally speaking a bond’s capital value drifts back towards par as it approaches maturity.