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 June 2018


The High Livez fund achieved a relatively-strong distribution for the month of June of 5.03% annualised, up from 4.20% per annum the previous month.

This distribution included realised trading gains of 0.20% on an annualised basis. While pleasing, these trading gains are incidental to the fund and do not represent a core objective of our Investment Committee.

Rather, the Investment Committee’s objective is to provide regular monthly distributions that are primarily achieved through interest income received on our investments.

The fund distributes all cash income it receives each month. As a consequence, an unrealised gain in one month, which is reflected in the unit price - if realised in the current month - will be distributed immediately to unit holders. This will then result in a corresponding reduction in the unit price.

The unit price as at 30 June, 2018 was 1.049259, down 0.09% from 1.050161 the previous month.

After accounting for the change from unrealised to realised capital gain of 0.20%, the underlying unit price actually improved slightly.

As discussed in previous months, the Bank Bills Index off which the majority of our floating rate investments reset has been rising over the past six months.

This trend continued during June with the one month Bank Bill Rate more than 0.50% above the official cash rate at the end of June.

This means that the returns of our fund will increase by the same amount as the index increase.

Another interesting consequence of this is that banks and other lenders can be expected to increase residential mortgage rates independently of the Reserve Bank of Australia. Indeed, many lenders have already commenced out of cycle rate increases in recent months.

The major banks are somewhat politically-constrained given the ongoing Royal Commission, however, given the increasing funding cost pressures, it is anticipated that they will also soon be forced to raise their mortgage rates.

The Total Return of our fund over the past 7 years was 6.15% per annum consisting of 5.58% distribution return and 0.57% capital gain.







# inception date was 29 March 2011.

Australian Economic Update

As we rounded out the financial year, Australian economic indicators released in June were stronger on balance. Annual GDP growth accelerated to an above trend 3.1% year-on-year and the unemployment rate was down to a 4-year low of 5.4% accompanied by a record number of job vacancies. However, high household debt and a weakening housing market remained the soft points of the domestic economy. The RBA left its cash rate at 1.50% at its June policy meeting and continues to hint that it will leave the rate unchanged until wages growth and inflation are noticeably higher.

Australian Credit Markets

There was a dichotomy in the performance of risky assets for the month of June. While the ASX 200 was up 3.3%, credit markets underperformed, with the Australian iTraxx wider by 10bps (down by 0.45%). Within the credit market itself, there was a wide disparity of performance. Institutional bank debt followed the path of the Australian iTraxx and traded wider in yield (dropping in price), while Residential Mortgage Backed Securities (RMBS) traded tighter in yield (higher in price) along with listed hybrids which were up by more than 1.1% over the period.

Historical performance assumptions

*Total return for the 7 years to 30 June 2018 and 6.28% 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 2017

 

Firstmac High Livez Additional Investments

 

Firstmac High Livez SQM Report 2018

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

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*Total return for the 7 years to 30 June 2018 and 6.28% 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.