Get to know Fixed Income

As Australia’s largest fixed income experts, FIIG provides access to a wide range of direct and managed cash and fixed income solutions.


FIIG offers Corporate clients a dedicated service to that enables you to create your own made-to-measure fixed income solution to meet your organisation’s investment needs.   Our solutions are designed to seamlessly meet the requirements of your investment policy around liabilities, risk, liquidity and any other factors you advise, while providing fixed income returns in a timely and predictable way.

As Australia’s largest fixed income experts FIIG’s specialist Corporate team have extensive sectoral experience and can  provide access to a wide range of direct and managed cash and fixed income solutions.  Our focus on meeting organisational requirements around reporting, security, risk tolerance, forecasting, yield enhancement, and team engagement is a significant contributor to that success. 

In 2017 FIIG administered over $11 billion of short and long term investments on behalf of long standing clients such as corporations, financial institutions, government, family offices, universities, religious bodies, charities as well as financial advisers and self-managed super funds. 

Money Market Services


FIIG can provide Corporate clients with strategies, facilitation and a wide array of deposit options to manage their liquidity requirements. With access to over 70 ADIs FIIG can create a customised cash solution explicitly to meet your organisation’s investment mandate. With over $7 billion of term deposit funds placed under investment, our specialist Deposit Team offers the benefit of sectoral expertise combined with unique investment opportunities for our Corporate clients.

Corporate bonds

A Corporate Bond is a loan from an investor to an issuer (such as the government, a bank or corporation). When you purchase a bond, the bond issuer is legally obliged to pay you regular interest and at the bond’s maturity, the face value of the bond (which is the price the bond was issued at) must be returned to you.

Bonds can be traded by investors after they have been issued and before they mature.

There are many types of bonds including fixed, floating and inflation linked bonds. A balanced portfolio will include different weightings of these three types of bonds, depending on your expectations for interest rates and inflation

The Benefits of Corporate Bonds

Earn a better return

Australian bonds have outperformed cash and Australian and Global shares in the 10 years to December 2016.*

 

 

 

* Gross returns for 10 years to December 2016- ASX 2017 Long-term Investing Report July 2017.

Better returns

Predictable income

Corporate bonds provide a regular income stream through interest payments.

Predictable Income

Capital preservation

Corporate bonds are a lower risk investment than shares in the same company because your principal must be repaid when the bond matures.

Capital Preservation

Diversify your portfolio

Diversifying your investments across different asset classes and markets is an important way to protect your wealth from the impact of market changes, interest rates, currency fluctuations and inflation.

Through bonds, you can also invest in assets that would otherwise be out of reach.

Diversify your portfolio

Watch our two minute videos on Corporate Bonds

The Features of Bonds

Managing risk and longevity

Frequently asked questions

Bonds are issued by many companies – from well known companies such as BHP, Qantas and Commonwealth Bank to smaller companies such as G8 Education and Praeco.

Over 300 bonds are available via FIIG’s DirectBonds Service. Wholesale qualified investors can also invest in foreign currency denominated bonds, including USD, GBP and Euro bonds.

When you purchase shares in a company, you become a part owner of that company and there’s no certainty of income via dividends. With corporate bonds, you lend money to the company that issues the bond and it is legally required to pay you regular interest and repay the face value of the bond when the bond matures. This means that investing in a company’s bond is a lower risk than owning its equity or shares.

Another major difference between shares and bonds is that shares are generally traded on an open exchange such as the ASX, whereas the majority of corporate bonds are traded on the Over the Counter market.

Australian bonds have outperformed cash and Australian shares in the 10 years to December 2015:

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Source: Gross returns for 10 years to December 2015, ASX 2016 Long term Investing Report May 2016.

How to access bond markets

In the past, corporate bonds were only available in $500,000 parcels making direct ownership of bonds unachievable for most NFPs.  FIIG has opened up access to direct ownership of corporate bonds through its DirectBond service.

  1. Bonds

    We will help build your organisation's portfolio based on your investment policy and income needs. By investing via our Institutional and Corporate services team you can access a breadth of supply and extract opportunity from a range of fixed and floating rate bonds and explore fixed income opportunity at each level of the capital structure.

  2. Managed Income Portfolio Service (MIPS)
  3. FIIG’s Managed Income Portfolio Service (MIPS) provides wholesale investors day to day professional portfolio management, while retaining beneficial ownership of fixed income securities. For investment amounts over $5m you can create a customised portfolio based on your investment policy and objectives.

     

Bond rates

Fixed income is primarily an over the counter (OTC) market, meaning there is no one single market clearing value as you would find on the stock exchange for equities.  As part of our commitment to making direct fixed income investing accessible to investors, FIIG is taking the lead in ensuring that we are providing the same level of market transparency to all investors that has been traditionally available only to institutional investors.

The rate sheet is designed to provide a snapshot of institutional market mid-point prices and yields (rates) that institutions who trade in $500,000 parcels can access.

View the Bond Rate Sheet (PDF)



Expertise you can trust

“When we started buying bonds through FIIG in 2012, it was the first time that we had directly invested in bonds, so it was important to us that we got off on the right foot. We had talked to FIIG for quite some time before finally making a move. We have a lot of confidence in FIIG’s advice and have been happy with the working relationship we have developed.”.
Greg Burrell, University of Newcastle

More from our clients

"What I like about FIIG is that it provides direct access to the Fixed Income market. Given Fixed Income is all we do, we use this expertise on a daily basis to help investors who are seeking capital preservation and income predictability."
Johnele Huggett, Director - Product and Platform

More from our team

For more information on Corporate Bonds 

The Benefits of Bonds eBook

Get a free copy of the Benefits of Bonds eBook

Get the eBook

Talk to an expert

Mark Connors - State Manager Bianca Burt - Associate Director, Money Market Sales George Cupac -  State Manager Markets - Victoria Jill May - Director - Fixed Income Sales Mathew Simpson - ‎Head of Corporate and Middle Markets

Phone Call us on 1800 01 01 82

...with offices based in Sydney, Brisbane, Melbourne and Perth