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 28 February 2019


The High Livez Fund has generated its highest monthly distribution in 18 months, with an annualised return for February 2019 of 4.77% distributed to unit holders.

This performance continued a recent trend of rising monthly returns which is partly due to elevation in the Bank Bill Swap rate (BBSW).

This is because High Livez’ portfolio is comprised of investment-grade Residential Mortgage Backed Securities (RMBS) which are Floating Rate Notes that reset monthly off the BBSW.

While the BBSW typically resets at a margin above the official cash rate, in recent times it has been elevated due to the increased global cost of funds, which has boosted our RMBS earnings.

Over the past seven years, the Total Return for High Livez has been 5.69% per annum, consisting of 5.21% Distribution Return and 0.48% Capital Growth.

The Unit Price was relatively unchanged, declining slightly from $1.0469 to $1.0463




# inception date was 29 March 2011.

Australian Economic Update

Australian economic indicators in February again showed mixed strength activity although with increasing evidence of weakness in household spending. December retail sales fell by 0.4% month on month and volume terms were up only 0.1% in Q4. Housing activity remained weak with December home building approvals down 8.4% month on month and the number of owner-occupier home loan commitments down 6.1%. On the strong side, employment rose 39,100 in January and the unemployment rate remained at a 7 year low of 5.0%. International trade was very strong showing a record high monthly surplus of $A3.7 billion in December. The RBA left the cash rate unchanged at 1.50% at its February policy meeting and still foresees no near term rate change. But the longer term RBA rate guidance has changed. It no longer says the next move will be a hike and now suggests an even chance of a hike or cut depending upon future economic conditions.

Australian Credit Markets

In February, risk assets continued their strong start to the year. The ASX 200 rallied by nearly 5% and credit spreads, using the Australian iTraxx index as a proxy, tightened by more than 12 basis points. Spreads on senior bank debt followed suit; ANZ issued a 5-year floating rate note at 110 basis points over swaps at the end of January and by the end of February this bond was trading at 98 basis points over swaps. The move in risk assets was underpinned by the US Federal Reserve announcing a much more dovish tone at its meeting at the end of January. The Federal Reserve said that it would be patient on further rate rises and with the unwinding of its balance sheet. This may continue to support risk assets, including credit spreads, in the near term.

Historical performance assumptions

*Total return for the 7 years to 28 February 2019 and 6.10% 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 7 years to 28 February 2019 and 6.10% 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.