Performance

Firstmac’s expertise in Residential Mortgage-Backed Securities has seen over $20 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 October 2018


The High Livez Fund achieved a distribution return of 4.75% in October, marking the latest in a series of strong results in recent months.

The return amounts to a substantial margin of 3.25% above the official cash rate.

As you know, High Livez owns a diversified portfolio of investment-grade Residential Mortgage Backed Securities (RMBS) which are comprised of loans secured against people’s homes, as well as some bank deposits.

Given this, it is pleasing to note that our unit price remained quite stable throughout the period, despite regular negative stories about the Financial Services Royal Commission and the future of house prices.

We believe the media’s pessimism about house prices is overdone because the market continues to be underpinned by strong fundamentals. Low interest rates, low unemployment, and continued population growth remain supportive to housing in Australia.

As expected, mortgage arrears levels remain very low by historical standards across our fund’s investments.

Our Unit Price since the start of 2016 is illustrated in the following graph.

The Total Return of the fund for the past seven years was 5.97%, consisting of a distribution return of 5.38% per annum, and Capital Growth of 0.59% per annum.




# inception date was 29 March 2011.

Australian Economic Update

Australian economic indicators released in October were again mostly quite strong. September home building approvals rebounded 3.3% month-on-month; retail sales rose 0.2% month-on-month and the international trade surplus was a record high $A3.0 billion. The unemployment rate fell to a six-year low of 5.0% in September and annual CPI inflation moderated in the third quarter to 1.9% year-on-year from 2.1% in the second quarter. At its monthly policy meeting, the RBA left the cash rate unchanged at 1.50%, an emergency low rate that has persisted for more than two years. The RBA reaffirmed its view that the economy is improving but that it will still be some time before inflation lifts enough to warrant a cash rate hike.

Australian Credit Markets

Risk assets were sold off in October due to a range of factors including concerns over global trade wars and higher US interest rates. Within the sell-off, the credit markets remained relatively steady. The Australian iTraxx, which is a good proxy for domestic credit, was wider by about nine basis points in the face of the ASX200 declining more than 6%. In similar periods of volatility, such as September 2015 and January 2016, when the ASX200 has experienced a 6%-7% decline, the Australia iTraxx was around 15 basis points softer. In the face of further market volatility, the credit markets are expected to continue to outperform.

Historical performance assumptions

*Total return for the 7 years to 31 October 2018 and 6.18% 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 2018

 

Firstmac High Livez Additional Investments

 

Firstmac High Livez SQM Report 2018

SQM Research provides independent assessment in managed funds to AFSL holders and their authorised representatives. SQM requires that you must be an AFSL holder or authorised representative to view this research.

      
 

Highlivez Performance Factsheet

 

Notice of change to the Constitution

 

Change of Compliance Plan Auditor
 

 

Change of External Dispute Resolution Scheme membership


 
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*Total return for the 7 years to 31 October 2018 and 6.18% 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.