I've read with much interest about people's current asset allocations within their SMSF. I currently hold 25% cash. However cash to me can have various classes such as bonds, cash at hand, term deposits. I also count income securities in my cash portfolio. I find there is not much discussion on this forum or generally on these instruments. The ASX calls these instruments Income Rate Securities but they cover things as Bonds, Floating Notes, Convertible Notes, Hybrids Granted that these instruments behave as equities on one hand (many are tradable on the ASX), they also behave as term deposits on another (rate of return for fixed interval of time). Rates are usually based on bank bill rate plus margin. I notice various companies have issued, are issuing or about to issue more on these instruments onto the market.
Given the size of funds being sort, there must be a sizable retail market.
So I'm interested in any HC member's views ? Do you consider them cash ? Do you hold them at all ?
