FIIG High Yield Index

What is high yield Unrated and sub investment grade bonds are typically referred to as high yield bonds which means they are not rated or hold a rating of ‘BB+’ or below by rating agency S&P, or ‘Ba1’ by Moody’s. High yield bonds carry attractive yields but come with higher risk compared to investment grade bonds. The most important way to hedge against associated risks is to diversify. You will find here information on the key risks and other considerations for building and managing a portfolio of high yield bonds.

You will find information here on the key risk and other considerations

The Solactive FIIG Australian High Yield and Non Rated Bond TR Index (FIIG High Yield Index) is a new index that allows investors to assess performance of the AUD high yield bond market.

 

properties

Attractive properties: Desirable risk-return profile along with potential diversification benefits

momentum

Momentum: More Australians are looking to bonds to deliver reliable returns and protect their portfolios in ways that shares and property cannot

exculsivity

Exclusivity: first index solution to exclusively cover high-yield and non-investment grade bonds in the Australian market

transparency

Transparency: Provides individual and corporate investors a solid foundation to make prudent investment decisions.

The FIIG High Yield Index is the first index to exclusively cover high yield and non-rated bonds in Australia.

The Index is a rules based, value weighted index engineered to mirror the performance of the AUD denominated Australian high yield and non-rated corporate bonds universe.The index is specifically designed for benchmarking purposes in order to facilitate investors’ decision-making processes, whilst functioning as a leading benchmark for AUD denominated non-investment grade bonds.

Solactive FIIG Australian High Yield and Non Rated Bond TR Index performance

HYIndexChart2
 

Since inception on 31 December 2012 the FIIG HY Index has generated a cumulative return of 59.72% to 30 November 2019, or compound annual return of 7.00% over the same period.

 

High Yield Index graphic

Solactive FIIG Australian High Yield and Non Rated Bond TR Index performance

Year Index Value Absolute Return Annualised Return
1 Yrs 1,504.81 6.14% 6.14%
2 Yrs 1,412.48 13.07% 6.34%
3 Yrs 1,306.09 22.28% 6.94%
4 Yrs 1,229.20 29.93% 6.76%
5 Yrs 1,170.86 36.41% 6.40%
6 Yrs 1,071.47 49.06% 6.88%
Inception 1,000.00 59.72% 7.00%

Selection Universe

The index consists of AUD-denominated domestic corporate bonds

  • Solactive FIIG Australian High Yield and Non Rated Bond TR Index.
  • Bloomberg Ticker: SOLFAUHY.
  • Currency: Australian dollars (AUD).
  • Minimum Amount Outstanding: AUD 20million.
  • Country of Domicile: Australia.
  • Rating: sub-investment grade or not rated by S&P Global Ratings and Moody’s Investors Service.
  • For additional information including index constituents click here.
Constituents Issuers Yield to Maturity Duration Time to Maturity Rating Aggregate Amount

51

41

5.30%

2.02

10.63

B-

6.08 bn

Rating Breakdown

Maturity Breakdown

Issuer Breakdown

About Solactive
Solactive AG is an innovative index provider that focuses on the development, calculation and distribution of tailor-made indices across all asset classes. As at January 2019, Solactive AG served approximately 400 clients in Europe, America and Asia, with approximately USD 200 billion invested in products linked to indices calculated by the company globally, primarily via 380 exchange-traded funds from a number of well-known providers. Solactive AG was established in 2007 and is headquartered in Frankfurt.

High Yield Index graphic

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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.