Performance

Firstmac’s expertise in Residential Mortgage Backed Securities has seen over $14 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 2017
 

The High Livez fund achieved a strong distribution for the month of April with an annualised return of 4.46%, representing a margin of 2.96% above the official cash rate.

The strong return is particularly pleasing at a time when most fixed income investments are offering record-low yields presenting a major dilemma for investors who rely on income from their investments.

Asset quality remained very good, and the rising yield of the fund was largely due to the deployment of excess cash into a new investment opportunity Issued by People’s Choice Credit Union from South Australia.

The South Australian investment reflected an important consideration of our Investment Committee which is the continued diversification of investments geographically across the nation.

The unit price was largely unchanged month on month at 1.0496 compared with 1.0499 the previous month.

The Total Return of the fund for the 6 years to 30 April 2017 was 6.51% per annum. This was comprised of annual distribution of 5.87% and capital growth of 0.64% per annum.

The Investment Committee continues to focus on its primary objective of identifying assets that will provide strong regular distribution returns.
 


 

# inception date was 29 March 2011.


Australian Credit Markets

Risky assets such as stocks experienced some volatility over the month of April with the French election and continued geo-political concerns weighing on markets. Notwithstanding the volatile month, equity markets closed higher and credit markets traded tighter with markets comforted when pro-European Union candidate Emmanuel Macron was confirmed as favourite and then won the French election. Financial markets continue to trade with a risk-on appetite with new bond issues continuing to be well over-subscribed and unsatisfied demand pushing up the value in secondary markets. In the shorter-term, geo-political issues loom as a potential source of volatility, therefore, investors should focus on the running yield of their investments.

Australian Economic Update

The RBA left its cash rate unchanged at 1.50% at its early May policy meeting (the last 25bps rate cut to 1.50% was in early August 2016). The accompanying statement reflected the RBA’s views that global and Australian growth are slowly improving, that Australian inflation remains low, but household debt and growth in investor loans for housing are a problem. The RBA has indicated that it is happy to allow APRA to deal with problematic growth in investor home loans by ratcheting up direct controls on banks. The RBA continues to closely monitor the labour market which is still quite soft with the unemployment rate at 5.9% in February and March and wages growth sitting at a record low 1.7% for the year. There was however a hint of a turn for the better in employment growth in March, up 60,800 after an upwardly revised 2,800 gain in February. The RBA would need to see signs that employment growth is continuing and that wages are starting to accelerate before moving the cash rate higher. This is a possibility late this year or early in 2018. Meantime, Australian real economic growth is averaging a little over 2% with strength in exports, now problematic strength in housing activity, subdued growth in consumer spending and fading weakness in business investment spending.

Historical performance assumptions

*Total return for the 6 years to 30 April 2017 and 6.63% 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 expended 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


 

Firstmac Financial Statement 2016

 

Firstmac High Livez Additional Investments

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

*Total return for the 6 years to 30 April 2017 and 6.63% 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.