Part of the defensive suite of investment assets, bonds form an important part of a balanced or diversified investment portfolio.

The Australian bond or debt market is a highly liquid, transparent market allowing investors to receive a safe and reliable income distribution over the life of their investment.

Investors wanting to purchase bonds can choose from a range of securities issued by various borrowers including:

• the Commonwealth Government,
• central borrowing authorities of State and Territory Governments, and
• major Australian corporations.

Traditionally bond transactions have taken place in the over-the-counter wholesale market. Increasingly corporate debt is also traded on the ASX. Starting in 2013 Commonwealth Government bonds are expected to trade on the ASX. However, bonds issued by state governments and many corporations and banks will continue to be traded over-the-counter.

Bell Potter can purchase bonds on a client's behalf either on the ASX or in the over-the-counter market, whichever is appropriate.

If you already hold bonds in your portfolio you may wish to consider holding them in safe custody through Bell Potter Nominees Limited ACN: 088 899 601 AFSL 269278.

Bell Potter Nominees is an Austraclear participant allowing settlement with a broad range of market participants. Your bonds are held in Austraclear on your behalf and can be readily dealt with in accordance with your instructions. The beneficial ownership does not change. Consider the added benefit of your coupon payments and maturity funds being directed to your account of choice.

Call your Adviser today on 1300 0 23557 to discuss your needs and to access our market-leading research.