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 October 2020

We are pleased to report that in the month of October, the steady and broad-based recovery in fixed-income assets continued.

This follows the improving trend seen in recent months which has helped to lift the value of the High Livez portfolio.

The recovery reflects a combination of factors including improvement in COVID-19 virus outcomes, improving economic statistics, and ongoing government stimulus supporting markets and consumers in general.

Our High Livez unit price increased for the seventh month in a row, rising from $1.0434 last month to $1.0446 this month. The unit price bottomed in March 2020, at the height of COVID-19 fears, when it fell to $1.0342.

The small size of this fluctuation highlights the relative stability of units in the fund compared to assets such as shares.

The fund achieved a distribution return for the month of October of 3.11% per annum, which was a solid 2.98% above the official cash rate of 0.13%. The official cash rate was subsequently cut to a target of 0.10% in early November.

The Total Return for the past 9 years was 5.44% per annum consisting of 5.02% annualised distribution return and 0.42% annualised capital growth.

Underlying mortgage bond (RMBS) performance has been excellent, buoyed by recovery of COVID-19 deferred mortgages as reported by a broad range of lenders across the industry. Firstmac’s own portfolio has improved from a peak deferral of 5.7% in June, to only 3.1% as at 31 October 2020.



Australian Economic Update

Australian economic indicators released in October showed more signs of recovery tempered by weak Victorian data. September retail sales fell 1.5% month-on-month but were up 5.2% year-on-year. August housing finance commitments rose by 12.6% month-on-month. September employment fell 29,500, a smaller fall than expected with rises in all states except Victoria. The unemployment rate edged up to 6.9% (market forecast 7.2%) from 6.8% in July. The Government announced a stimulatory 2021 Budget with the deficit forecast to rise to $213 billion or 11% of GDP in 2020-21.

Australian Credit Markets

Australian credit markets continued to perform well during October.  Senior bank spreads have been supported by the RBA’s Term Funding Facility that provides support to Australian banks. Bank have used this additional funding to purchase other bank’s senior bank paper and as a result trading margins on senior bank securities have tightened from a wide of 140 basis points in March, to 48 basis points at the start of October and then another 15 to 20 basis points tighter during October.  This move, especially over the past month, has outpaced the move tighter in other credit products.  The Australian iTraxx index started the month of October at 73 basis points before ending at 71 basis points.

Historical performance assumptions

*Total return for the 9 years to 31 October 2020 and 5.64% 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 2020

 

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 October 2020 and 5.64% 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.