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 May 2018


We are pleased to report that the High Livez fund recorded a distribution return of 4.20% per annum for the month of May.

This represented a margin of 2.70% above the official cash rate.

The Unit Price as at 31 May 2018 was relatively stable at 1.0502 compared with 1.0511 the previous month.

The unit price reflects the underlying market value of the bond investments held by the fund. These investments are revalued daily by external global market data firm ICE Data (Intercontinental Exchange www.theice.com)

The Total Return for the past 7 years was 6.21% per annum consisting of 5.62% distribution return and 0.59% capital growth.


# inception date was 29 March 2011.

In Focus: Portfolio Composition

This month we have a special focus section on the composition of our investment portfolio. The fund has a broad mix of bonds issued by a diverse group of 18 issuers as displayed below. It can be seen from these graphs that the Investment Committee has been slowly increasing the fund’s exposure to credit unions and building societies.

This is based on the observation by our Investment Committee that these typically member-owned institutions tend to have a more conservative lending profile associated with their ownership status.

Diversification of any investment portfolio is a useful practice in spreading and managing risk. The pie graph below illustrates the fund’s underlying residential mortgage exposure by state:

Other useful portfolio statistics are provided in the following table:

Australian Economic Update

It was a month of mixed-strength Australian economic readings with continuing signs of weakness in housing activity and consumer spending while business investment spending and export sales picked up pace. The RBA left its cash rate unchanged at 1.50% at its May policy meeting, bringing the period that the cash rate has remained unchanged to an unprecedented 19 months. RBA commentary, however, including the economic forecasts in its quarterly Monetary Policy Statement remain upbeat about global and Australian economic growth prospects. Wages growth remains the key soft point in the Australian outlook, but if this firms the RBA has indicated it will be quick to start hiking its cash rate.

Australian Credit Markets

Fixed income credit markets were slightly softer in May, illustrated by the move in the Australian Itraxx index (a good proxy for domestic credit) which widened by 5 basis points. Parts of the Australian credit market did underperform. The ASX-listed bank hybrids traded wider in yield terms, which can be attributed to The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry and to Labor’s threat to change rules on franking credits. However, other sectors such as Residential Mortgage Backed Securities, which High Livez invests in, continued to trade tighter in spread terms.

Historical performance assumptions

*Total return for the 7 years to 31 May 2018 and 6.31% 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


 

Firstmac Financial Statement 2017

 

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

*Total return for the 7 years to 31 May 2018 and 6.31% 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.