Get to know Fixed Income

FIIG offers dedicated service to Institutions and Corporate clients that enables you to create a made to measure income solution to meet your organisation’s investment needs in a timely and predictable way. We offer Institutions and Corporate clients a customised strategic investment overlay which allows you to meet your organisation's investment policy requirements around liabilities, risk, liquidity and other factors.

As Australia’s largest fixed income specialist we provide direct access to a wide range of cash and fixed income products and services from a specialist team with specific expertise in the requirements of the Institutions and Corporate sector.

In 2015 FIIG administered over $11 billion of short and long term investments on behalf of long standing clients such as corporates, family offices, universities, religious bodies and charities as well as financial advisers and self managed super funds.

Understanding Corporate clients require controlled and transparent performance from their investments and often have highly individualised needs, our service is designed to offer specialist products and services that optimise investment opportunity within your organisational requirements.

Term deposits and other cash products


FIIG can provide Institutions and Corporate clients competitive rates and strategies to manage their liquidity requirements. With access to over 60 banks and financial institutions FIIG can offer you customised cash solutions that align with an overall fixed income strategy. With over $7 billion of term deposit funds placed under investment, our specialist Deposit Team offers unique service, expertise and investment opportunities to Institutions and 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

stability

Capital stability
All corporate bonds are guaranteed by their issuers so, assuming the issuer remains solvent, they are contractually obliged to pay back the principal value to the bondholder.

cashflow

Predictable cashflow
Corporate bonds provide a regular income stream through coupon (interest) payments.

diversity

Diversity
Diversifying a portfolio with fixed income spreads investment risk across a range of assets to help reduce the impact of any one investment.

liquidity

Liquidity
There is a deep and active market for secondary trading of most fixed income securities in Australia so you can sell prior to maturity if needed.

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:

accordion-test

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

Watch our two minute videos on Corporate Bonds

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.

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.


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MIPS

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.



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Custodial Service 

In common with many other financial markets, when you buy bonds in the over the counter (OTC) market, unless you are a licensed participant you are required by law to hold them in the safe keeping of a licensed custodian until they mature or you decide to sell them. FIIG is licensed by ASIC to hold client assets in safe custody and uses J.P. Morgan for settlement and banking purposes. Your assets are held in safe custody in FIIG’s account with J.P. Morgan

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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.




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

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Call us Talk to an expert

Mark Connors - State Manager Kate Hurse - ‎NFP cash management and investment specialist George Cupac -  State Manager Markets - Victoria Jill May - Director - Fixed Income Sales Mathew Simpson - ‎Head of Corporate and Middle Markets

Call us on 1800 01 01 82

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

Our awards

  • Core Data SMSF awards 2015 - Fixed income winner, SMSF Member Category
  • Core Data SMSF awards 2014 - Fixed income winner, SMSF Adviser Categor
  • Core Data SMSF awards 2013 - Fixed income winner, SMSF Member Category
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