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 August 2019
 

We are pleased to report that during the month of August our fund produced a Distribution Return of 3.64% on an annualised basis.

This was a solid 2.64% above the official Reserve Bank of Australia (RBA) cash rate which has now reduced to 1.00%.

Structured finance activity during the month of August 2019 has been strong. This continued hunt for yield has driven in margins and tranches have been oversubscribed which resulted in investors being scaled back.

The Unit Price has generally remained constant, with a small decrease from 1.0538 to 1.0537. Over the coming months if the strong demand for primary issuance continues, this may result in a corresponding unit price increase.

Delinquency and default rates across the fund’s underlying residential mortgage exposure remain very low by historical standards. The Investment Committee is pleased with the performance of investments held.

The Total Return for the past 8 years was 5.94% per annum, consisting of 5.36% Distribution Return and 0.59% Growth Return.




Australian Economic Update

Australian economic indicators in August mostly showed slightly firmer activity. June retail sales rose by 0.4% month-on-month and Q2 real retail sales rose 0.2% quarter-on-quarter after falling 0.1% in Q1. Housing auction clearance rates improved to the best levels in two years in August and house prices increased more than 1% month-on-month in Melbourne and Sydney. The June international trade surplus was a record $A8.0 billion. The labour market was strong in July with employment up 41,100 in the month and full time employment up 34,500. The unemployment rate was steady at 5.2%. After cutting the cash rate in both June and July, the RBA paused in August and indicated in its latest forecasts that it sees slow progress ahead for GDP growth and very slow lift in wages and inflation. The RBA stands ready to cut the cash rate below the current 1.00% in need, but foresees little imminent pressure to cut the cash rate further. 

Australian Credit Markets

Risks assets were slightly lower in August as a result of escalating trade tensions between the US and China. As President Trump tweeted and China retaliated, volatility in equity markets rose. However, domestic credit markets continued to be well behaved. Westpac issued a Tier 2 bond during the month that was well oversubscribed and traded 2 to 3 basis points tighter in the secondary markets. Demand for structured credit products, such as residential mortgage backed securities (RMBS), was also substantial.  There were a number of primary RMBS deals issued during the month that were extremely oversubscribed. This was expected given the overall demand for credit and the recent reversal in the housing market.

Historical performance assumptions

*Total return for the 8 years to 31 August 2019 and 6.08% 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 31 August 2019 and 6.08% 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.