A fixed income fintech has expanded its reach to SMSF investors, who can now invest in its fund via a mobile application.
Blossom announced that as part of an expansion beyond its current 13,000 retail investors, the fixed income investing app was now open to SMSFs and small and medium-sized enterprises (SME).
SMSFs will now have access to the Blossom Fund, managed by institutional management firm Fortlake Asset Management, which provides access to a diversified portfolio with targeted returns of 5.95 per cent a year.
The fintech said the fund will offer daily earnings and has no sign up, transfer or withdrawal fees, and so far 10 SMSFs, representing $844,000 in funds under management (FUM), have signed on to the app as have seven SMEs with $2.7 million in FUM.
Blossom chief executive and co-founder Gaby Rosenberg said: “We set out with the intention to provide access to fixed income for businesses and SMSFs and are pleased to have achieved that.
“The expanded offering of Blossom for business and SMSF reaffirms our commitment to democratising access to bonds.
“Fixed income has offered a ballast of stability amidst high market volatility this year and we have seen increased demand for stable returns.
“This expanded offering has experienced pleasing uptake so far and we look forward to this trend continuing into 2024.”
Rosenberg said the expansion of the customer base follows Blossom recently reaching $40 million in FUM and an increase in its targeted return, the ninth rise, since inception in 2021.
She added the growth in retail investors and interest from SMSF and SME investors was due to a growing awareness and understanding of bonds that has taken place over several successive interest rate hikes during the past year.