Investment for a Church

[Jackpot]

Hi

I am helping my church to gather information on the feasibility of investing into some interest bearing securities for a steady income stream. I am not familiar with the bonds market and would certainly appreciate if you guys can offer some advice.

We are looking to invest about 200K. Obviously from a church perspective, we would want to stay away from high risk investment. Currently this money is sitting in term deposit earning 6% interest. I am exploring other alternatives such as bonds, notes, debentures or any other suitable investments.

I understand that on this forum, you are not allowed to give financial advice. Thus I am not asking for how to invest but only for information with regards to the interest payable, fees involved and where about to purchase it etc.

Any information would be great.

Thanks in advance.
JP

 

[akkopower]

Here is a link to ... Hybrid securities

http://www.macquarie.com.au/macsecmc/codi/CodiServlet?nav=start&documenttosend=income_security_doc

 

[Jackpot]

Hi Akkopower.

Thanks for the link. Thats very useful as a start.
Any idea whether there will be fees (brokerage?) for investing into these bonds/notes? What would be the minimum investment amount?

Any other advice wouldbe great.

Cheers
JP

 

[akkopower]

These are traded on the asx so min amount is $500 and the fees will vary depending on who your broker is.

If u use an internet broker, such as comsec, fees should be around 0.2% of the total purchase price. If u were to buy say $100000 of sunpb it would cost u $200.

If u buy them from an old school stock broker fees should be significantly higher.

There is a thread here on hybrid securities if u are interested just search "hybrid securities"

there are also many discussions on them on the internet just search "h. s."