Performance

Firstmac’s expertise in Residential Mortgage-Backed Securities has seen over $29 billion in RMBS issued since 2003. High Livez gives everyday investors access to this market, which is usually restricted to institutional investors.

Fund performance to 31 August 2020

The High Livez fund’s returns for August 2020 have been relatively stable compared with the prior two months.

This reflects the broader fixed income market which has been quite buoyant in recent times.

The fund achieved a distribution return for the month of August of 3.35% per annum, which was a solid 3.22% above the official cash rate of 0.13%.

The fund’s Unit Price was broadly unchanged, increasing from 1.0384 to 1.0386.

The Total Return for the past nine years was 5.48% per annum consisting of 5.12% annualised distribution return and 0.36% annualised capital growth.

In general, market liquidity has been quite good, although bond prices are tending to be slowly bid higher, due to the drive of cash needing to find a home for investment.



Australian Economic Update

Australian economic indicators released in August and early September showed a very weak economy with Q2 GDP down 7.0% quarter-on-quarter and 6.3% year-on-year.

This was partially offset by signs of a bounce in July retail sales, up 3.2% month-on-month; July employment, up 114,700 ( although the unemployment rate rose to 7.5% from 7.4% in June); and housing with the value of home loan commitments up 6.2% month-on-month in June and July home building approvals up 12.0%.

Victoria’s protracted Covid-19 shutdown throws doubt on the pace of Australia’s economic recovery.

The RBA made no change to monetary policy in early August leaving the cash rate at 0.25% and again promising that the cash rate will be no higher than 0.25% for years to come. At its 1 September policy meeting the RBA expanded the scope of its 25bps term funding facility to ADIs to assist lending.

Australian Credit Markets

The credit markets ground tighter in August on the back of continued global central bank support for investment-grade credit assets and the performance of equities in the US markets.  The Australian iTraxx, which is a good proxy for domestic credit risk, started the month trading at 76 basis points before ending at 64 basis points.  Primary issuance in the Australian credit markets have been well received in both structured credit deals, such as RMBS and asset-backed securities, and single-name credit deals like bank Tier 2 transactions.  Deals have been generally well oversubscribed and have printed around pre-Covid-19 levels.

Historical performance assumptions

*Total return for the 9 years to 31 August 2020 and 5.62% p.a. since inception on 29 March 2011. The total return is the trust’s consolidated performance over the period referenced. Past performance is not indicative of future performance and should not be the only factor considered when selecting an investment. Performance is calculated on an initial investment for $10,000 with distributions reinvested. Ongoing fees and expenses have been applied however individual taxes are excluded. This information is general information only and does not take into account your individual objectives, financial situation or needs. You should assess whether the information is appropriate for you and consider obtaining financial advice prior to making an investment decision.

High Livez downloads

 

Direct Debit Request


 

Eureka Report


 

Financial Services Guide


 

Firstmac and RMBS


 

High Livez Financial Statement 2019

 

Firstmac High Livez Additional Investments

 

Highlivez Performance Factsheet

 

Notice of change to the Constitution

 

Change of Compliance Plan Auditor
 

 

Change of External Dispute Resolution Scheme membership

 

Firstmac High Livez Notice of Change to PDS
 

 

Firstmac High Livez
Letter to all members
March 2020
 

 

Firstmac High Livez
Letter to all members
April 2020
 

 

Firstmac High Livez
SQM Report 2020

 


 
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*Total return for the 9 years to 31 August 2020 and 5.62% p.a. since inception on 29 March 2011. The total return is the trust’s consolidated performance over the period referenced. Past performance is not indicative of future performance and should not be the only factor considered when selecting an investment. Performance is calculated on an initial investment of $10,000 with distributions reinvested. Ongoing fees and expenses have been applied however individual taxes are excluded. This information is general information only and does not take into account your individual objectives, financial situation or needs. You should assess whether the information is appropriate for you and consider obtaining financial advice prior to making an investment decision.

High Livez is issued by Perpetual Trust Services Limited ("Perpetual") ACN 000 142 049 AFSL 236648 as the Responsible Entity of the Trust. The Investment Manager is Firstmac Limited ("Firstmac") ACN 094 145 963 AFSL 290600. Firstmac High Livez and the Product Disclosure Statement (PDS) is available at www.firstmac.com.au or by contacting Firstmac on 13 12 20. The information in this document is general information only and does not take into account any person's situation, financial objectives or needs. You should read the PDS in its entirety before making any decision to invest. Perpetual and Firstmac strongly recommend you obtain independent professional financial advice on the risks and suitability of this product. The value of your investment in High Livez could go down as well as up. Past performance is not a reliable indicator of future performance. Restrictions may apply to the amount and timing of withdrawal requests - refer to the PDS for full details.