Table of Contents: 

What is a Fixed Maturity Bond Portfolio?
Key features of Fixed Maturity Bond Portfolio
Why Now for Fixed Maturity Portfolios?
Leveraged Fixed Maturity Bond Portfolio: Exclusively for Accredited Investors

What is a Fixed Maturity Bond Fund

A Fixed Maturity Bond Fund is a diversified basket of bonds that are selected to mature around the same time, typically within 2 to 5 years. Think of it like a “bond basket” designed to behave similarly to a time deposit—but with higher yield potential.

Key features of Fixed Maturity Bond Fund

Feature	Description
Underlying Investments	The underlying typically consists of a diversified basket of publicly traded bonds, which may be investment-grade, high-yield, or a combination of both.
Defined Maturity Date	The bonds in the portfolio are selected to mature around the same target date (e.g. end of 2027).
Buy-and-Hold Strategy	Bonds are usually held to maturity to capture the full yield, reducing interest rate volatility.
Diversification	The portfolio may include bonds from multiple issuers, sectors, or geographies to spread credit risk.
Predictable Income	Investors receive regular coupon payments (e.g., semi-annually)  and principal is returned at maturity.
Higher Yields than Fixed Deposits	Offers a yield pickup compared to fixed deposits or government bonds, especially with corporate bond exposure. Some strategies may employ leverage to enhance potential returns.

Why Now for Fixed Maturity Bond Fund?

Corporate bond yields remain at decade highs, presenting compelling income opportunities for fixed income investors. 

With inflation easing and the macro outlook growing more uncertain, central banks—including the Fed—are moving into a rate-cutting cycle. In this environment, fixed maturity strategies offer investors the ability to lock in today’s elevated yields while reducing exposure to future rate volatility. 

Leveraged Fixed Maturity Bond Fund: Exclusively for Accredited Investors

To capitalise on current market conditions and attractive yields, some experienced portfolio managers employ leverage to amplify returns from fixed maturity portfolios. Here’s how a leveraged Fixed Maturity Bond Fund compares to holding individual bonds or a typical bond fund.

Description	Single Bond	Typical Bond Fund	Leveraged Fixed Maturity Bond Fund
Typical Yield (p.a.)	Depends. IG US corporate bonds range from 4.5% to 5.5% p.a.	IG focused: 5% p.a. HY focused: 7.5% p.a.	IG tilt portfolio, leverage lower than 2X 8.0% to 10.0% p.a.
Fixed term	Yes	No	Yes
Interim cash flows	Certain	Less certainty	Greater certainty
Credit diversification	No	Yes	Yes
Ongoing professional credit monitoring	Limited	Yes	Yes
Low operating unit cost (brokerage/borrowing costs)	High	Low	Low
Liquidity	Low	High	Restricted
Worst case (default)	Yes	Limited loss: Well diversified	Higher than un-leveraged fund
Volatility	Yes	Relatively Low	Declining (with decaying duration)
Return	Idiosyncratic	Less Volatile	Enhanced Return

Source: MacroMicro, iShares Bond ETFs, and Silverdale Factsheets. Data as of March 2025. For illustrative purposes only. 

Syfe has partnered with an experienced fund manager with a strong track record in fixed income strategies since 2000, to bring this exclusive opportunity to our accredited investors. Explore Syfe’s Leveraged Fixed Maturity Bond offerings to discover solutions designed to enhance yield and boost returns.

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