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 November 2019
 

Our High Livez fund enjoyed a strong distribution month in November 2019 with a 3.35% margin above the official 0.75% cash rate.

Total distribution for the month was 4.10% on an annualised basis.

Demand for the Residential Mortgage-Backed Securities (RMBS) in which our fund invests is quite firm as we head into the holiday season. This extends the continuing theme of investors seeking yield opportunities.

RMBS have proven popular given their widely-diversified underlying residential real estate exposure, coupled with fixed margins above the floating bank bill rate.

On the 6th December 2019, Firstmac issued a new RMBS transaction that raised AUD$1.1 billion. Interestingly, the AA-rated notes were 2.36x subscribed, while the A-rated notes were 3.11x subscribed. This represents significant demand on what was already a large transaction. This was a pleasing result.

The unit price of the fund was stable, relatively unchanged at $1.0536, compared with $1.0542 the prior month.

The Total Return for the High Livez fund for the past 8 years was 5.80% per annum, consisting of 5.20% distribution return and 0.59% capital growth.




Australian Economic Update

Australian economic indicators in November were mixed-strength. Housing indicators continued to strengthen with housing finance commitments up for a fourth consecutive month in September and home building approvals lifting 7.6% month-on-month. On the soft side, September retail sales rose 0.2% month-on-month but fell by 0.1% quarter-on-quarter in real terms in Q3. Employment unexpectedly fell by 19,000 in September and the unemployment rate edged up to 5.3%. The RBA left the cash rate unchanged at a record low of 0.75% at its early November policy meeting and, while indicating a desire to pause for a few more months to assess the impact of earlier policy stimulus, also made plain its readiness to cut rates further if needed.

Australian Credit Markets

Risk assets continued to rally in November, with the ASX200 and US S&P500 increasing 2.74% and 2.20% respectively, reaching new all-time highs, while domestic credit spreads tightened, with the Australian iTraxx finishing 3 basis points lower than the previous month. However, not all individual names followed suit. Westpac was in the news over the month due to the Austrac scandal that claimed the job of its chief executive Brian Hartzer. Not surprisingly, Westpac’s Tier 2 bank spreads were wider by as much as 10 basis points during the month. In price terms, this represented a drop in the price of its 5-year bonds by 0.4% which, while significant for a bond, is no comparison to the 12% drop in the Westpac share price over the month.

Historical performance assumptions

*Total return for the 8 years to 30 November 2019 and 6.01% 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 2019

 

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 November 2019 and 6.01% 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.