Performance

Firstmac’s expertise in Residential Mortgage Backed Securities has seen over $16 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 October 2017


The High Livez fund achieved an annualised distribution of 3.39% - or 1.89% above the cash rate - for the month of October, reflecting a transitioning of excess cash into new investments during the month.

This followed the realisation of capital gains which had boosted returns in the prior month to a record 5.19% per annum.

By the end of October the fund’s Yield-to-Maturity was 4.88%, indicating approximate future monthly distribution levels.

During the month, the unit price for the fund recorded a 4% increase, rising from 1.0500 to 1.0543 month on month.

This reflected increasing demand for the types of assets the fund holds, which are investment-grade Residential Mortgage Backed Securities (RMBS) comprised of loans secured against people’s homes, as well as some bank deposits.

The fund has invested in RMBS from some of Australia’s most highly-rated financial institutions including Westpac, AMP, National Australia Bank, the Commonwealth Bank, and Suncorp.

The Total Return for the fund over the last 6 years was a strong 6.34%.

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 Economic Update

The RBA left its cash rate unchanged at 1.50% at its early October policy meeting. The rate was last changed more than a year ago in August 2016. The statement accompanying the latest no-rate-change decision was again relatively upbeat about global and local economic growth prospects, implying that the next rate change will be upwards when it arrives eventually. Australian economic data releases over the past month have again been comparatively strong and provide reason to be optimistic about local economic growth prospects. Housing activity and household spending generally are turning softer while business investment spending, government infrastructure spending and exports of goods and services are all picking up pace. A notable and very encouraging aspect of the improvement in Australian economic activity has been a run of strong or very strong monthly increases in employment this year. Strong employment growth should eventually lead to better growth in wages too.

Australian Credit Markets

During the month of October, risky assets continued to trade with a risk-on bias and volatility, as measured by the VIX index, is trading at record lows. The Australian Itraxx index, which is a measure of the credit risk of 25 investment grade issuers, is currently trading at 65 basis points, a level last seen in early October 2008. On balance the current environment is conducive for risky-assets to trade higher and this steady climb in prices may last for some time.

Historical performance assumptions

*Total return for the 6 years to 31 October 2017 and 6.56% 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 2017

 

Firstmac High Livez Additional Investments

 

Firstmac High Livez SQM Report 2017

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

*Total return for the 6 years to 31 October 2017 and 6.56% 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.