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 30 June 2019


For the month of June 2019, our fund achieved a strong annualised distribution return of 4.13%, bringing the Total Return for the past eight years to 5.93% per annum.

This strong income is expected to moderate slightly in coming months, as the coupon payments from the investments owned by the fund are reduced following the RBA’s recent rate cuts.

As you would be aware, the Reserve Bank of Australia (RBA) reduced official cash rates from 1.50% to 1.25% on 4th June 2019 and then again to just 1.00% on July 4, affecting all interest-rate-linked investments.

Our Residential Mortgage-Backed Securities (RMBS) are one such investment, earning monthly coupons which are set as a margin above the 30-day Bank Bill rate, which typically moves in line with the RBA’s official cash rate.

When the RBA starts increasing rates again, the coupons on our floating rate notes will also increase.

Post the July RBA meeting, the Investment Committee has noted increased demand for assets with yield including external requests to bid for assets held by our fund.

It is anticipated that this represents a search for yield from those no longer satisfied by the interest rates received on Term Deposits.

It is likely that this may translate into increasing prices on the assets held by our fund. Related to this theme, we are seeing increased inflows of new applications for units in High Livez.

Despite this, the fund Unit Price has been relatively unchanged, increasing slightly in June from $1.04699 to $1.0474.




# inception date was 29 March 2011.

Australian Economic Update

Australian economic indicators in June showed overall soft activity, with pockets of strength in international trade and employment. Real GDP rose only 0.4% quarter-on-quarter, 1.8% year-on-year, weighed down by weak consumer and housing spending. The April international trade surplus was a near-record $4.9 billion, boosted by a 3% export lift. The labour market still showed strong employment growth in May, but the unemployment rate remained unchanged at 5.2%. The RBA cut the cash rate 0.25% to 1.25% in June, the first cut in three years, and again in July to 1.00%.

Australian Credit Markets

Risk assets finished the financial year on a high. The markets were buoyed by perceptions that the central banks around the world would look to ease monetary policy in response to slower economic growth. Domestic credit spreads reacted strongly with the Australian ITraxx ending the month 15 basis points (bps) tighter at a 12-month low of 64bps. Other parts of the Australian credit markets also followed suit such as subordinated bank debt; the recently issued NAB Tier 2 bond was trading at 200bps over swaps at the end of May and by the end of June was trading at 178bps over swaps.

Historical performance assumptions

*Total return for the 8 years to 30 June 2019 and 6.05% 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 2019

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

 

Firstmac High Livez Notice of Change to PDS
 


 
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*Total return for the 8 years to 31 July 2019 and 6.10% 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.