I’d like to invest in government bonds for at least part of my investment. Part of my motivation for doing this is for the funds to be secure. But I do not want to assume my investment is secure only because my funds are with the government. Any information about where the government will direct my funds is much appreciated. Thank you.
Answers
Investment fund managers are required to qualify and to be licensed for foreign investment. The portfolio that these managers offer will differ according to products approved by the government. Since you are investing quite a significant amount, it would be prudent for you to get in touch with an immigration consultant.
As part of the complying investment for a Significant Investor visa, a "balancing investment" of AUD 3 million, is invested into managed funds which may include annuities, Australian listed securities, eligible corporate bonds or notes, and real property (subject to the 10 percent limit on residential real estate). From 1 July 2015, it is no longer possible to invest in Commonwealth, State or Territory bonds as a complying investment. A corporate bond is not the same as a government bond, which is a low-risk investment. A corporate bond allows a company to raise money from investors to finance their business activities. The company issuing the bonds will pay interest at regular intervals and return the invested money on the "maturity date.” Corporate bonds generally provide higher returns than cash, government bonds or term deposits, and less than shares.
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