Online investment and trading platform Stake has launched Stake Accummulate — an actively managed income fund that targets consistent distributions of 2% p.a. above the RBA cash rate, paired with low capital volatility.
The fund, which primarily invests in fixed income securities and corporate bonds, aims to provide investors a consistent target return on a monthly basis. Stake Accumulate also features a limited income buffer (of up to 5% of the fund’s total assets), to mitigate the risk of distribution shortfalls if the fund fails to reach its target return.
Jon Howie, CEO at Stake said, “We know that a growing number of Australians want access to income generating products such as corporate bonds and treasuries, but the high levels of complexity have made it difficult for most people to navigate.
“Stake Accumulate breaks barriers to income investing through a seamless and intuitive experience, giving customers a new way to diversify their portfolios.”
Stake Accumulate will now progressively be made available to its customers, and can only be accessed through the Stake platform. Additional features include:
- Automated reinvestment feature: distributions are revinvested by default aiming to deliver investors compounded long term returns. Alternatively, distributions can be paid directly into Stake AUS balances.
- Easy access of funds, with no lock-up period: investors can withdraw into their Stake Aus balance without exit fees. Settlement of these funds generally takes three business days.
- Low barriers to entry: the minimum initial investment is A$500, and subsequent investments can be as little as A$10.
- Seamless tracking of balance and returns: Stake Accumulate earnings can be tracked and visualised via the dedicated product view. In addition, the new manage tab displays balances and portfolio weighting across Stake Aus, Stake Wall St, Stake Accumulate and cash, in one single view.
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The Stake Accumulate target return is calculated after all fees and expenses, meaning it aims to deliver the entire RBA + 2% p.a. income to investors. Fees include a 0.51% p.a. management fee, plus recoverable expenses of up to 0.36% p.a.
Stake was founded in Australia in 2017 and is backed by major investors including Tiger Global and DST Global Partners. The company features a desktop and mobile trading app that enables Australians to trade Australian and US stocks.
