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 January 2019


The High Livez fund achieved solid distributions for the month of January, 2019, with an annualised 4.62% earned for unitholders.

This represented a margin of 3.12% above the official cash rate. Our returns in recent months have benefited from an elevated monthly bank bill rate off which our floating rate investments reset.

The one month bank bill rate remained at a margin of approximately 0.50% above the official cash rate during the month.

The Unit Price was largely unchanged at 1.0470 compared with 1.0474 the previous month.

The Total Return for the past 7 years was 5.82% per annum, consisting of a 5.25% distribution return and 0.57% capital growth.

There seems to be a constant flow of media articles at the moment discussing falling house prices in Sydney and Melbourne. The facts are as follows:

  • Sydney prices have fallen from their peak by approximately 12%, with some estimates forecasting a 20% peak to trough decline
  • Melbourne is following a similar path but lagging Sydney somewhat
  • These falls are only likely to cause stress to more highly leveraged borrowers who purchased in the last 18 months

This is the case given that over the past 10 years Sydney house prices have doubled in price, while Melbourne is up +70% as demonstrated by the following graph:

We can therefore say that this is a welcome pullback from what was rapid growth. This has been well managed by the Regulators.

Unemployment remains low across the nation. This means that borrowers are still able to afford and service their home loan commitments. Indeed we see continued low levels of delinquencies across our book and wider investment portfolio.

As an example, for Firstmac which has an $11 Billion portfolio, 99.5% of loans are current with no missed payments.




# inception date was 29 March 2011.

Australian Economic Update

Australian economic indicators in January showed mixed strength activity. Housing remained weak with November home building approvals down a much greater than expected 9.1% month on month, -32.8% year on year. Other parts of the economy still showed strength with November retail sales up 0.4% month on month, employment up 21,600 in January and the unemployment rate down to the lowest point in 40 years in both New South Wales (4.3%) and Victoria (4.2%). Inflation remained low and stable with Quarter 4 CPI up 0.5% quarter on quarter, 1.8% year on year. The last RBA policy meeting in December left the cash rate unchanged at 1.50%, an emergency low rate that has persisted more than two years. Low inflation and a mixed economic growth outlook should mean that the cash rate stays unchanged for at least another year.

Australian Credit Markets

Credit spreads tightened significantly in January erasing all the widening that the credit markets experienced in November and December. The Australian iTraxx index, which is a good proxy for Australian credit spreads generally, started the month at 95 basis points and widened to more than 100 basis points in the first week of the New Year before closing out at 75 basis points at the end of the month. The bounce in credit followed the move in other risk assets. The ASX200 was higher by 3.7% over the month while the US S&P 500 rose by 7.9%. The move in risk assets was certainly aided by the announcement by the US Federal Reserve that it had moderated its position on future interest rate moves. This position should continue to put a bid under risk assets, including the credit markets, for the near term.

Historical performance assumptions

*Total return for the 7 years to 31 January 2019 and 6.12% 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 31 January 2019 and 6.12% 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.