Getting you started in the fixed income markets
If you are a first time investor and would like to know more about how investing in fixed income securities can help you grow your wealth, our experienced dealers would be happy to advise you on the investments that are most suitable for you taking into account your interest rate investment objectives and risk tolerance. To speak to one of our licensed dealers please call Alastair or Wayne on (617) 3020 3000.

We also strongly advise you to read through the material in our investor education centre as this will inform you of the key benefits and risks of investing in fixed income products, as well as provide you with other key information about the products you may want to invest in.

Products we have access to:
We can obtain very competitive prices and rates for clients seeking short term and/or long term fixed income investments.

In the short-term money market we can access:

• Cash deposits (including 24hr call) from all major and foreign banks, regional banks, building societies, credit unions and finance companies;
• Treasury notes issued by the Federal Government;
• Commercial paper (CP) or promissory notes (PN's) issued by companies or Government departments;
• Bank accepted and/or bank endorsed bills of exchange (BBills) normally drawn by companies and individuals
• Certificates of deposit (CD's) issued by corporations, state governments, other government borrowers, finance companies and securitisation vehicles.

In the long-term securities market we can access:

• Commonwealth government bonds issued by the Federal Government
• Semi-government bonds issued by state governments and other government authorities
• Negotiable certificates of deposit (NCD's) normally issued by the major banks
• Corporate bonds issued by large companies
• Floating rate notes (FRN's) issued by major banks, semi-government authorities, large companies and finance companies.
• Asset-backed and mortgage-backed securities (ABS, RMBS) issued by semi government authorities and large companies.
• CPI linked Government securities
• Collateralised debt obligations (CDO's)
• Income securities
• Convertible notes

Buying new issues
As RIMsec is actively involved in the distribution process, are regularly in touch with their clients and are aware of what their investing needs are, RIMsec is constantly being drawn upon by institutions to distribute the new issues that they wish to place in the market. These relationships enable us to access a lot of the new 'hot' issues that are produced and well sought after in the market.

Secondary market trading
RIMsec can also access products already trading in the secondary market. In the past the secondary market, for fixed income products, has largely been the domain of institutional investors. RIMsec is able to provide professional and sophisticated retail clients direct access to these markets. Access to these secondary markets provides investors with greater liquidity for their investments which is vital to successful investing.

Impartial service
RIMsec is not directly aligned to particular borrowers or issuers of securities, so we are able to offer investors an impartial service across the wide spectrum of products available in the fixed income markets. We can either find you the fixed income product you want to invest in or we can offer you a range of products for you to select from. Our aim is to ensure that we find you the right product at a competitive price or rate.

Credit ratings
The credit rating of an issuer has a significant impact on the rate of return that an investor can expect to receive on a debt security issued to them. It is therefore extremely important that investors are fully aware of the latest credit rating of the issuer of the products they are buying, so that they are able to properly compare the rates of return on offer. All things being equal, the higher the credit rating of the issuer, the lower the expected return and vice versa.

Latest Market Information
As with all investments, it is very important to keep track of them and the outlook for the markets you invest in. RIMsec provides clients with up-to-date information on the performance of the fixed income markets which includes, amongst other things, the latest information on the Australian economy, other major influential economies and interest rates. By taking the right action at the right time, investors can improve returns and create more value for themselves.

Portfolio construction and valuations
Constructing fixed income portfolios need not be complicated. We can construct a portfolio for you based on your investment objectives, income needs and risk tolerance and the outlook for interest rates. With the large volume of new issues and more tailored products created in the market over the last number of years, it has become easier to provide income solutions to suit individual yield and risk profiles. As part of our portfolio construction service, RIMsec will at any time - value your portfolio, provide liquidity on all securities, assess your portfolio and recommend adjustments.

Clearance and settlement of executed transactions
When a transaction has been executed for a client, the transaction must then be settled; for example, if a security has been purchased it must be paid for and the certificate evidencing ownership of the security sent to the investor. If a security has been sold, then the certificate must be sent to the dealer for onward transmission to the new owner and the proceeds from the sale paid to the seller. Settlement arrangements differ between securities.

Tax on fixed income products
It is important to always consider the tax effect of any investment made. For any taxation queries, please contact your financial adviser or accountant.