FIIG - The Fixed Income Experts

Bond Portfolios

Created by Jon Sheridan, Chief Investment Strategist

  • Conservative

    3.29%p.a. Return*

  • Balanced

    4.62%p.a. Return*

  • High Yield

    6.00%p.a. Return*

Returns since the 29th of June 2018 are 8.71% pa. This portfolio has 13 securities with all weightings between 4.7% and 11.5%, yielding 3.29% pa. It is designed for investors wanting a 100% allocation of investment grade bonds. The returns shown are based on a $1 million investment. $250,000 is the minimum amount that can be invested with FIIG.

Bond types

Security types

Sectors

What makes up the portfolio

Holding Issuer Product Type Structure Industry Sector Capital Value Capital Price Currency % allocation Yield
70,000 Sydney Airport Finance CIB Senior Debt Infrastructure 108,365 154.65 AUD 10.9% 3.62%
70,000 Queensland Treasury Corporation FCB Senior Debt Semi Government 114,598 160.66 AUD 11.5% 1.52%
80,000 Pacific National Finance Pty Ltd FRN Senior Debt Infrastructure 82,844 103.34 AUD 8.3% 3.07%
80,000 Aroundtown SA FCB Senior Debt Property 88,818 109.65 AUD 8.9% 2.66%
80,000 Insurance Australia Group Ltd FRN Tier 2 Insurance 81,124 100.68 AUD 8.1% 2.77%
75,000 Adani Abbot Point Terminal Pty Ltd FCB Senior Debt Infrastructure 77,003 100.80 AUD 7.7% 5.96%
80,000 JEM NSW Schools II Pty Ltd IAB Senior Debt Infrastructure 81,369 101.71 AUD 8.2% 3.56%
70,000 National Australia Bank FRN Tier 2 Regional Bank 70,704 100.88 AUD 7.1% 2.76%
70,000 Liberty Financial Pty Ltd FRN Senior Debt Other Financials 71,347 102.00 AUD 7.2% 3.13%
70,000 Plenary Health (Casey) Finance Pty Ltd IAB Senior Debt Infrastructure 63,006 90.01 AUD 6.3% 3.50%
50,000 Liberty Financial Pty Ltd FRN Tier 2 Regional Bank 50,528 100.95 AUD 5.1% 5.13%
50,000 AMP Limited FRN Tier 2 Regional Bank 49,995 99.80 AUD 5.0% 3.60%
80,000 MPC Funding Ltd IAB Senior Debt Infrastructure 46,828 58.54 AUD 4.7% 3.55%

^ Pricing as at 31 August 2019. Subject to change.

How did we choose this portfolio?

Each bond is selected to ensure the overall portfolio:

Preservation

Is designed to preserve
your capital

Cash flow

Generates ongoing
cash flow

Diversity and balance

Provides diversity
and balance

We combine fixed, floating and inflation linked securities and ensure all the bonds in the portfolio are investment grade securities.

  • Fixed Rate Bonds pay the same coupon amount throughout the life of the bonds, allowing you to predict cash flow.
  • Floating Rate Bonds move with the market interest rate and increase your return when rates rise.
  • Inflation Linked Bonds allow you to protect against rising inflation.

An allocation to senior debt securities means your investment is prioritised above shareholders for repayment. This protects your investment in the event of a problem with one of the issuers, because legally if the company goes into liquidation, any available funds will be repaid to senior investors before equity investors.

Returns since the 29th of June 2018 are 8.59% pa. This portfolio has 23 securities with weightings between 2.7% and 8.3%, yielding 4.62% pa. It is designed for investors wanting a balanced allocation of investment grade and sub investment grade bonds. The returns shown are based on a $1 million investment. $250,000 is the minimum amount that can be invested with FIIG.

Bond types

Security types

Sectors

What makes up the portfolio

Liberty Finance
Holding Issuer Product Type Structure Industry Sector Capital Value Cost Price Currency % allocation Yield to maturity
55,000 Sydney Airport CIB Senior Debt Infrastructure 85,144 154.65 AUD 8.3% 3.62%
70,000 Incitec Pivot Ltd FCB Senior Debt Other Corporate 78,388 110.01 AUD 7.6% 2.62%
70,000 JEM NSW Schools IAB Senior Debt Infrastructure 71,198 101.71 AUD 6.9% 3.56%
60,000 PHF IAB Senior Debt Infrastructure 54,005 90.01 AUD 5.2% 3.50%
50,000 WorkPac FRN Senior Debt Other Corporate 50,579 100.90 AUD 4.9% 5.56%
50,000 Virgin Australia FCB Senior Debt Aviation 53,203 106.45 AUD 5.2% 6.40%
50,000 Maurice Blackburn Lawyers FCB Senior Debt Other Corporate 51,560 103.10 AUD 5.0% 6.31%
50,000 Liberty Finance FRN Tier 2 Regional Bank 50,528 100.95 AUD 4.9% 5.13%
50,000 AMP Bank FRN Tier 2 Regional Bank 49,995 99.80 AUD 4.9% 3.60%
35,000 Pioneer Credit FRN SubDebt Other Financials 35,858 101.20 AUD 3.5% 5.45%
40,000 CF Asia Pacific FCB SubDebt Other Corporate 30,950 100.55 AUD 3.0% 7.85%
30,000 Liberty Finance FCB Senior Debt Property 31,604 103.30 AUD 3.1% 2.97%
30,000 SCT Logistics FCB Senior Debt Other Corporate 30,660 102.20 AUD 3.0% 5.96%
30,000 Elanor FCB Senior Debt Property 32,189 104.60 AUD 3.1% 5.47%
30,000 Ansett Aviation Training FCB Senior Debt Other Corporate 31,216 101.75 AUD 3.0% 5.95%
30,000 StockCo FCB Senior Debt Other Financials 31,059 103.60 AUD 3.0% 6.90%
30,000 NextDC FCB Senior Debt Other Corporate 31,491 103.50 AUD 3.1% 4.17%
30,000 Zenith Energy FCB Senior Debt Infrastructure 28,903 102.00 AUD 2.8% 6.92%
30,000 Moneytech FRN SubDebt Other Financials 30,378 100.50 AUD 2.9% 4.76%
40,000 Privium Real Estate FCB Senior Debt Property 28,164 101.70 AUD 2.7% 7.13%
30,000 ZipMoney FRN SubDebt Other Financials 30,532 101.35 AUD 3.0% 5.89%
30,000 Merredin Energy FCB Senior Debt Infrastructure 28,001 103.90 AUD 2.7% 6.00%
30,000 MPC Funding IAB Senior Debt Infrastructure 29,564 98.55 AUD 2.9% 3.46%

^ Pricing as at at 31 August 2019. Subject to change.

How did we choose this portfolio?

Each bond is selected to ensure the overall portfolio:

Preservation

Is designed to preserve
your capital

Cash flow

Generates ongoing
cash flow

Diversity and balance

Provides diversity
and balance

We combine a mix of investment grade and sub investment grade bonds to generate the return, in conjunction with differing security types

  • Fixed Rate Bonds pay the same coupon amount throughout the life of the bonds, allowing you to predict cash flow.
  • Floating Rate Bonds move with the market interest rate and increase your return when rates rise.
  • Inflation Linked Bonds allow you to protect against rising inflation.

An allocation to senior debt securities means your investment is prioritised above shareholders for repayment. This protects your investment in the event of a problem with one of the issuers, because legally if the company goes into liquidation, any available funds will be repaid to senior investors before equity investors.

Returns since the 29th of June 2018 are 12.19% pa. This portfolio has 21 securities with weightings between 1.9% and 18.5%, yielding 6.00% pa. It is designed for investors seeking a higher return and who are comfortable with a corresponding increase in credit risk. The returns shown are based on a $1.5 million investment. $250,000 is the minimum amount that can be invested with FIIG.

Bond types

Security types

Sectors

What makes up the portfolio

 
Holding Security Description Product Type Structure Industry Sector Capital Value Capital price Currency % allocation Yield
200,000 Adani Abbot Point Terminal FCB Senior Debt Infrastructure 260,952 98.75 USD 18.5% 4.86%
100,000 NCIG Holdings FCB Senior Debt Infrastructure 181,202 117.00 USD 11.3% 9.32%
70,000 Sydney Airport CIB Senior Debt Infrastructure 94,827 154.65 AUD 6.8% 3.62%
50,000 Hertz FCB Senior Debt Other Corporate 64,941 103.75 USD 4.9% 6.11%
52,000 Hunt FCB Senior Debt Resources 72,377 97.25 USD 4.7% 6.79%
56,000 NCIG Holdings FCB Senior Debt Other Corporate 75,769 101.00 USD 5.3% 4.25%
51,000 Rockpoint FRN Senior Debt Infrastructure 76,319 101.75 USD 4.9% 6.44%
50,000 IAMGOLD FCB Senior Debt Resources 70,234 103.83 USD 4.9% 6.18%
55,000 Geo Group FCB Senior Debt Telecoms 71,392 89.25 USD 4.7% 8.51%
50,000 Harland Clarke FCB Senior Debt Other Corporate 69,486 98.19 USD 4.5% 10.90%
50,000 Virgin Australia FCB Senior Debt Aviation 50,150 106.45 AUD 3.3% 6.40%
50,000 Incitec Pivot FCB Senior Debt Other Corporate 49,905 110.01 AUD 3.5% 2.62%
50,000 Armour Energy FRN SubDebt Resources 50,000 101.20 AUD 3.2% 8.38%
50,000 Liberty Financial FRN Senior Debt Other Financials 50,150 102.00 AUD 3.2% 3.13%
50,000 AMP Bank FRN Tier 2 Regional Bank 50,150 99.80 AUD 3.1% 3.60%
50,000 WorkPac FRN SubDebt Other Corporate 50,000 100.90 AUD 3.2% 5.56%
55,000 Privium FCB Senior Debt Property 41,581 101.70 AUD 2.4% 7.13%
30,000 Pioneer Credit FRN SubDebt Other Financials 30,397 101.20 AUD 1.9% 5.45%
40,000 CF Asia Pacific FCB SubDebt Other Corporate 35,432 100.55 AUD 1.9% 7.85%

^ Pricing as at at 31 August 2019. Subject to change.

How did we choose this portfolio?

Each bond is selected to ensure the overall portfolio:

Preservation

Is designed to preserve
your capital

Cash flow

Generates ongoing
cash flow

Diversity and balance

Provides diversity
and balance

We combine a mix of investment grade and sub investment grade bonds to generate the return, in conjunction with differing security types

  • Fixed Rate Bonds pay the same coupon amount throughout the life of the bonds, allowing you to predict cash flow.
  • Floating Rate Bonds move with the market interest rate and increase your return when rates rise.
  • Inflation Linked Bonds allow you to protect against rising inflation.

An allocation to senior debt securities means your investment is prioritised above shareholders for repayment. This protects your investment in the event of a problem with one of the issuers, because legally if the company goes into liquidation, any available funds will be repaid to senior investors before equity investors.

Bonds available through FIIG

Choose from 113 bonds that pay over 6% returns

Coupon type
Fixed Coupon Bond
Price
$99.47
Sector
Finance
Maturity
Mar 2047
6.21%
Yield to maturity
Coupon type
Fixed Coupon Bond
Price
$104.25
Sector
Other Corporate
Maturity
Aug 2022
6.31%
Yield to maturity
Coupon type
Fixed Coupon Bond
Price
$105.68
Sector
Other Corporate
Maturity
May 2023
6.54%
Yield to maturity

Coupon type
Fixed Coupon Bond
Price
$105.00
Sector
Technology
Maturity
Apr 2038

6.05%
Yield to maturity
Coupon type
Floating Rate Note
Price
$104.88
Sector
Finance
Maturity
Jan 2049
7.55%
Yield to maturity
View all bonds

Choose from 67 bonds that pay 5% returns

Coupon type
Fixed Coupon Bond
Price
$104.25
Sector
Consumer
Maturity
Jun 2022
5.97%
Yield to maturity
Coupon type
Fixed Coupon Bond
Price
$103.18
Sector
Industrial
Maturity
Jun 2021
5.72%
Yield to maturity
Coupon type
Fixed Coupon Bond
Price
$115.28
Sector
Finance
Maturity
May 2036
5.05%
Yield to maturity
Coupon type
Fixed Coupon Bond
Price
$99.53
Sector
Industrial
Maturity
Nov 2028
5.26%
Yield to maturity
Coupon type
Fixed Coupon Bond
Price
$102.00
Sector
Finance
Maturity
Jun 2025
5.21%
Yield to maturity
View all bonds

Choose from 422 bonds that pay upto 5% returns

Coupon type
Floating Rate Note
Price
$101.11
Sector
Finance
Maturity
Aug 2025
5.04%
Yield to maturity
Coupon type
Fixed Coupon Bond
Price
$100.80
Sector
Utilities
Maturity
Feb 2043
4.32%
Yield to maturity
Coupon type
Fixed Coupon Bond
Price
$110.34
Sector
Finance
Maturity
Jun 2046
4.96%
Yield to maturity
Coupon type
Floating Rate Note
Price
$78.58
Sector
Finance
Maturity
Aug 2036
4.45%
Yield to maturity
Coupon type
Floating Rate Note
Price
$100.81
Sector
Consumer
Maturity
Jun 2044
2.96%
Yield to maturity
View all bonds 

^ Pricing as at 01 August. Subject to change. The yields and prices do not represent the prices that FIIG will transact with its clients. They simply represent FIIG's observation of the institutional market mid-point prices which are obtained from FIIG's trading with institutional counterparties, as well as numerous market data sources that FIIG has access to. A mid-point value sits between the typical bid (offer to buy) and ask (offer to sell) prices prevailing in the institutional market.

Bonds available through FIIG

Choose from 500+ bonds
Coupon type
Fixed Coupon Bond
Price
$104.50
 Sector
Other Corporate
Maturity
Aug 2022
6.25%
Yield to maturity
Coupon type
Fixed Coupon Bond
Price
$103.63
 Sector
Consumer
Maturity
Jun 2022
6.23%
Yield to maturity
Coupon type
Fixed Coupon Bond
Price
$105.58
 Sector
Other Corporate
Maturity
May 2023
6.60%
Yield to maturity

Coupon type
Fixed Coupon Bond
Price
$105.50
 Sector
Technology
Maturity
Apr 2038

6.01%
Yield to maturity
Coupon type
Floating Rate Note
Price
$104.53
 Sector
Finance
Maturity
Jan 2049
7.67%
Yield to maturity
View all bonds

^ Pricing as at 09 July. Subject to change. The yields and prices do not represent the prices that FIIG will transact with its clients. They simply represent FIIG's observation of the institutional market mid-point prices which are obtained from FIIG's trading with institutional counterparties, as well as numerous market data sources that FIIG has access to. A mid-point value sits between the typical bid (offer to buy) and ask (offer to sell) prices prevailing in the institutional market.

Earn over 6% pa* with Corporate Bonds. Get started today!

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* Return is yield to maturity. Subject to change and before fees. Please see our FSG for any applicable fees.
† Weighted average life for maturity.

Copyright The contents of this document are copyright. Other than under the Copyright Act 1968 (Cth), no part of it may be reproduced or distributed to a third party without FIIG’s prior written permission other than to the recipient’s accountants, tax advisors and lawyers for the purpose of the recipient obtaining advice prior to making any investment decision. FIIG asserts all of its intellectual property rights in relation to this document and reserves its rights to prosecute for breaches of those rights.

Disclaimer Certain statements contained in the information may be statements of future expectations and other forward-looking statements. These statements involve subjective judgement and analysis and may be based on third party sources and are subject to significant known and unknown uncertainties, risks and contingencies outside the control of the company which may cause actual results to vary materially from those expressed or implied by these forward looking statements. Forward-looking statements contained in the information regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. You should not place undue reliance on forward-looking statements, which speak only as of the date of this report. Opinions expressed are present opinions only and are subject to change without further notice.

No representation or warranty is given as to the accuracy or completeness of the information contained herein. There is no obligation to update, modify or amend the information or to otherwise notify the recipient if information, opinion, projection, forward-looking statement, forecast or estimate set forth herein, changes or subsequently becomes inaccurate.

FIIG shall not have any liability, contingent or otherwise, to any user of the information or to third parties, or any responsibility whatsoever, for the correctness, quality, accuracy, timeliness, pricing, reliability, performance or completeness of the information. In no event will FIIG be liable for any special, indirect, incidental or consequential damages which may be incurred or experienced on account of the user using information even if it has been advised of the possibility of such damages.

FIIG provides general financial product advice only. As a result, this document, and any information or advice, has been provided by FIIG without taking account of your objectives, financial situation and needs. FIIG’s AFS Licence does not authorise it to give personal advice. Because of this, you should, before acting on any advice from FIIG, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If this document, or any advice, relates to the acquisition, or possible acquisition, of a particular financial product, you should obtain a product disclosure statement relating to the product and consider the statement before making any decision about whether to acquire the product. Neither FIIG, nor any of its directors, authorised representatives, employees, or agents, makes any representation or warranty as to the reliability, accuracy, or completeness, of this document or any advice. Nor do they accept any liability or responsibility arising in any way (including negligence) for errors in, or omissions from, this document or advice. FIIG, its staff and related parties earn fees and revenue from dealing in the securities as principal or otherwise and may have an interest in any securities mentioned in this document. Any reference to credit ratings of companies, entities or financial products must only be relied upon by a ‘wholesale client’ as that term is defined in section 761G of the Corporations Act 2001 (Cth). FIIG strongly recommends that you seek independent accounting, financial, taxation, and legal advice, tailored to your specific objectives, financial situation or needs, prior to making any investment decision. FIIG does not make a market in the securities or products that may be referred to in this document. A copy of FIIG’s current Financial Services Guide is available at www.fiig.com.au/fsg.

An investment in notes or corporate bonds should not be compared to a bank deposit. Notes and corporate bonds have a greater risk of loss of some or all of an investor’s capital when compared to bank deposits. Past performance of any product described on any communication from FIIG is not a reliable indication of future performance. Forecasts contained in this document are predictive in character and based on assumptions such as a 2.5% p.a. assumed rate of inflation, foreign exchange rates or forward interest rate curves generally available at the time and no reliance should be placed on the accuracy of any forecast information. The actual results may differ substantially from the forecasts and are subject to change without further notice. FIIG is not licensed to provide foreign exchange hedging or deal in foreign exchange contracts services. The information in this document is strictly confidential. If you are not the intended recipient of the information contained in this document, you may not disclose or use the information in any way. No liability is accepted for any unauthorised use of the information contained in this document. FIIG is the owner of the copyright material in this document unless otherwise specified.

The FIIG research analyst certifies that any views expressed in this document accurately reflect their views about the companies and financial products referred to in this document and that their remuneration is not directly or indirectly related to the views of the research analyst. This document is not available for distribution outside Australia and New Zealand and may not be passed on to any third party without the prior written consent of FIIG. FIIG, its directors and employees.

Copyright © 2019 FIIG Securities Limited | ABN 68 085 661 632 | AFSL No 224659 | Financial Services GuideSitemap | About us
FIIG provides general financial product advice only.  For a copy of our disclaimer please refer to fiig.com.au/disclaimer
* Based on FIIG’s high yield sample portfolio. Click here to view. Subject to change and before fees. Please see our FSG for any applicable fees.