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Risk Disclosure Statement

Capital Guard AU Pty Ltd

Risk Disclosure Statement

ACN 168 216 742 ABN 48 168 216 742 AFSL 498434

Important information about the nature and risks of investment products offered by Capital Guard.

Table of Contents

Introduction Securities (Equities) Risks Bonds & Debt Securities Managed Investment Schemes Conclusion & Considerations Enquiries & Complaints Company Information

Introduction

Important Risk Warning

This document provides you with information about the nature and risk of certain investment types. It does not explain all the risks or how the risks relate to your personal circumstances. If you have any doubt about whether or not our products are appropriate for you, you should seek professional advice before trading.

We provide the opportunity for investment and dealing in the following products:

  • Securities: shares, fractional shares and ETFs (to the extent the ETF is issued by a corporate entity).
  • Interests in managed investment schemes (excluding IDPS): including interests in listed property or infrastructure trusts and ETFs structured as managed investment schemes.

Capital Risk Warning

Even though our offerings are suitable for both retail and wholesale clients, investing in any of the above risks your capital and you may not get back as much as you originally invested.

Terms not defined in this Risk Disclosure have the meaning given in our Invest Terms (as applicable).

1. Risk Warnings Related to Securities (Equities)

1.1 General Risk Warnings

Shares represent part ownership in a company and participate in its performance. Values may rise or fall and can go to zero in insolvency. You may not recover the full amount invested.

1.2 Dividend Payment Not Guaranteed

Dividends are determined by the company’s board and may be reduced or suspended, including during economic stress.

1.3 Dealing/Administrative Costs

Costs and charges reduce profits or increase losses. Understand all commissions and charges before trading.

1.4 Market Gapping

Sudden price shifts (often across market closes) can cause unexpected losses.

1.5 Non-readily Realisable Investments

Limited or illiquid markets may make it difficult to sell at a reasonable price or at all.

1.6 Past Performance

Past performance is not an indicator of future results.

1.7 Dealing in Securities Subject to Stabilisation

Stabilisation may artificially support prices during a new issue period.

1.8 Liquidity Risk

Liquidity varies by company size, sector, venue and conditions; can change rapidly.

1.9 International Investments

Information may be less available; time zones and currency fluctuations apply.

1.10 Price Volatility

Share prices can fluctuate widely and remain depressed for extended periods.

1.11 Penny Shares

Lower-priced shares often have wider spreads and higher loss risk.

1.12 Settlement

Settlement typically matches securities and cash simultaneously.

1.13 Market Risk

Sudden market moves can affect prices up or down.

1.14 Volatility Risk

Prices may fluctuate rapidly due to company, economic, supply/demand and political factors.

1.15 Currency Risk

Different currency denomination to your account can increase or reduce P&L.

1.16 Regulatory and Taxation Changes

Law or policy changes may affect value, returns and taxes.

1.17 Risk of Disruption

Technology or network failures may disrupt access or services.

1.18 Segregated Accounts

Client funds are held in segregated accounts per ASIC rules, but bank risk is not eliminated.

2. Bonds and Other Debt Securities

A debt security signifies a claim against the issuer. Characteristics depend on issuer, collateral, maturity and interest method.

Bond Types Overview

  • Bond: interest-bearing loan to an entity at fixed or variable rate.
  • Discount Paper: issued below face value; accretes to par at maturity.
  • Debenture: unsecured corporate debt instrument documenting obligations to holders.

Bond Investment Risks

2.1 General Risk

Subject to markets, macro conditions and regulation; principal may not be recovered.

2.2 Interest Rate Risk

Prices move inversely to rates; longer maturities are more sensitive.

2.3 Economic Risk

Inflation and downturns can reduce real returns and increase default risk.

2.4 Liquidity Risk

Some bonds may be hard to sell at fair value; illiquid markets can force discounts.

2.5 Credit Risk

Issuer may miss interest or principal; lower ratings generally mean higher risk and yield.

Key consideration: higher yield often compensates for higher credit risk.

2.6 Exchange Rate Risk

Foreign currency bonds expose returns to FX movements.

2.7 Inflation Risk

Fixed coupons lose purchasing power as inflation rises; inflation-linked bonds may mitigate.

2.8 Call or Prepayment Risk

Callable bonds may be repaid early in falling-rate environments, creating reinvestment risk.

2.9 Reinvestment Risk

Coupons/principal received may need reinvestment at lower rates.

2.10 Sovereign Risk

Governments (especially in emerging markets) may default due to political or economic stress.

2.11 Regulatory Risk

Law or tax changes can affect yields and valuations.

3. Risks of Managed Investment Schemes

General Investment Risk Warning

All investments carry risk. Values and returns vary, and future returns may differ from past returns. Returns are not guaranteed and you may lose some or all of your investment. Appropriate risk levels depend on personal factors (age, horizon, other assets, tolerance).

3.1 Specific Investment Risks

Derivative Risk: derivatives may magnify gains/losses and create counterparty risk, especially in uncleared OTC markets.

Exclusionary Screens Risk: screening can affect performance versus unscreened peers.

Index-Related Risk: tracking indices involves data/constituent errors, rebalancing costs and market exposure around adjustments.

Fixed Income Security Risk: variability in returns and potential loss of income or capital due to:

  • Credit Risk: deterioration in issuer creditworthiness reduces value.
  • Interest Rate Risk: rising rates reduce fixed-rate values (more for longer duration).
  • Income Risk: falling rates can reduce reinvestment income.
  • Issuer Risk: corporate/sovereign issuers may default.
  • Spread Risk: market factors can widen spreads and lower yields.

4. Conclusion and Investor Considerations

Assess risks against your goals, tolerance and horizon before investing. Diversify, seek professional advice, and understand the product features and issuer creditworthiness. This Risk Disclosure is informational and not financial advice.

5. Enquiries and Complaints

If you have an enquiry or complaint, contact our Complaints Officer. We acknowledge and investigate complaints and provide a final response within 30 calendar days.

Capital Guard is a member of the Australian Financial Complaints Authority (AFCA). If your complaint is not resolved within 30 days or you are dissatisfied with the outcome, you may refer it to AFCA (free to consumers).

AFCA Contact Information

  • Telephone: 1800 931 678 (free call)
  • Mail: Australian Financial Complaints Authority Limited, GPO Box 3, Melbourne VIC 3001
  • Email: info@afca.org.au
  • Website: www.afca.org.au

Company Information

  • Company Name: Capital Guard AU Pty Ltd
  • ACN: 168 216 742
  • ABN: 48 168 216 742
  • AFSL: 498434
  • Website: www.secureratebonds.com.au
  • 24/7 Hotline: 1300 712 528
  • Office Landlines: +61 2 8551 2719
  • Address: Level 36, 1 Macquarie Place, Sydney NSW 2000 Australia
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ASIC regulated fixed income investment solutions designed for stability, growth, and clarity.

  • 1300 712 528
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  • support@secureratebonds.com.au
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Capital Guard is a trading name of Capital Guard AU Pty Ltd and is licensed and regulated by ASIC ACN 168 216 742, ABN 48 168 216 742, AFSL No. 498434.

All investments carry risk and past performance is not an indicator of future performance. Minimum investment $25,000. Investors should seek professional advice before committing capital.

© 2025 Capital Guard. All rights reserved.

Regulated by ASIC ACN 168 216 742 | ABN 48 168 216 742 | AFSL No. 498434