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 April 2019


During April, our High Livez fund achieved its highest distribution result in almost two years, with an annualised return for the month of 5.96%.

This result included a portion of trading capital gain due to selling some Residential Mortgage Backed Securities (RMBS) for more than we paid for them.

As you know, High Livez owns a diversified portfolio of investment-grade RMBS, as well as some bank deposits.

These include RMBS from some of Australia’s most highly-rated financial institutions including Westpac, National Australia Bank and Suncorp.

While capital growth and trading gains are not a primary objective of our fund, opportunities such as those we realised in April are available from time to time.

The unit price in April eased slightly from 1.0472 to 1.0464, a decline of 0.07%.

The Total Return for the fund over the past 8 years was 5.99% per annum consisting of 5.54% distribution return and 0.44% capital growth.




# inception date was 29 March 2011.

Australian Economic Update

Australian economic indicators in April again showed mixed-strength activity. February retail sales were surprisingly strong, up by 0.8% month-on-month. By contrast, home building approvals fell by 15.5%, albeit after rising 19% the month before, and Australia recorded another record monthly trade surplus of $A4.8 billion. The labour market remained strong in March with employment up 25,700 and the unemployment rate at 5.0% close to an 8-year low. Q1 CPI inflation was surprisingly soft, flat in the quarter and up only 1.3% year-on-year, well below the RBA’s 2-3% target band. The RBA left the cash rate unchanged at 1.50% at its April policy meeting, but discussed the conditions necessary for a potential rate cut – namely, rising unemployment and persistently low inflation. At present, only low inflation supports the case for a rate cut, while unemployment remains low.

Australian Credit Markets

The credit markets remained strong in April with the Australian iTraxx index trading around 8 basis points tighter for the month to end at 66 basis points. The Australian iTraxx index is a good proxy for the price of credit risk domestically. Bank senior spreads followed the move tighter with the trading margin on ANZ’s recent 5 year deal 7 basis points tighter over the period. Other securities within the credit markets also continue to experience a strong bid. Bank Tier 2 paper, corporate debt, RMBS, and Asset-Backed Securities (ABS) all traded tighter over the month. This tone looks like it will continue until there is much greater volatility in risk assets.

Historical performance assumptions

*Total return for the 8 years to 30 April 2019 and 6.08% 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 30 April 2019 and 6.08% 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.