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 September 2018


During the month of September 2018, our High Livez fund produced an annualised distribution of 4.27%.

This represented a margin of 2.77% above the official cash rate of 1.50%.

In meetings with institutional investors in Australia and in Japan over the past month, there has been increasing discussion around the potential impacts of the Financial Services Royal Commission - together with associated commentary from politicians and the media – on RMBS markets.

While there has been softening in the housing markets of Sydney and Melbourne, the underlying fundamentals of continued population growth, low interest rates, and low unemployment remain positive for house prices.

There may well be small interest rate increases resulting from the influence of rising US interest rates on global rates including ours but this is not anticipated to have a significant impact upon the High Livez portfolio.

Under responsible lending regulations, applicants are stress tested on their ability to service borrowings based on a minimum interest rate of 7.0%.

This would entail a 2.50% - 3.00% interest rate increase from current levels. This seems unlikely at this stage. Delinquencies levels across our High Livez Investment portfolio remain very low.

During September 2018 the Unit Price was relatively unchanged at 1.0478. The Total Return for the past 7 years was 6.01% per annum consisting of 5.42% distribution return and 0.59% capital growth.
 




# inception date was 29 March 2011.

Australian Economic Update

Australian economic indicators released in September were mostly strong. GDP growth beat expectations for a second consecutive quarter and in Q2 was up 3.4% year-on-year.

Strong GDP growth helps explain strong monthly employment readings, up 44,000 in August and up more than 300,000 in the 12 months ending August. The monthly RBA policy meeting 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

The domestic credit markets were tighter in September as evidenced by the move in the Australian iTraxx index, which for Series 29 tightened in by around 10 basis points. This was in contrast to the move in the Australian equity market (ASX 200) which, for the month, was 2.7% softer. It is rare that we witness a strong divergence between domestic credit and equities over a month and it tends to be due to domestic credit having a higher correlation with offshore equities than the Australian market. While the ASX 200 was down in September the US S&P 500 was up.

Historical performance assumptions

*Total return for the 7 years to 30 September 2018 and 6.19% 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 30 September 2018 and 6.19% 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.