FIIG Australian Bond Fund

From Australia’s leading independent fixed income specialist with 25 years of in-market, on-the-ground fixed income expertise. Achieve a highly diversified exposure to the Australian Investment Grade Fixed Income Market.

NOW OPEN FOR INVESTMENT

 

Diversified Portfolio
Daily Liquidity
Predictable Income
Capital Preservation

Fund Objective

The Fund aims to provide investors with capital stability, income and returns (after fees) in excess of the Benchmark Index over three-year rolling periods through investment in a portfolio of Investment grade rated Australian fixed interest securities that include government and corporate bonds, mortgage-backed securities, asset-backed securities, cash and enhanced cash instruments.

Distribution Frequency

Quarterly. For the period ending March, June, September and December.

Minimum suggested timeframe

At least three years

Minimum initial investment amount

$10,000

Minimum additional investment amount

$1,000

Suitability

Investors with a medium-term investment horizon seeking a steady and reliable income stream.

Head of Portfolio Management

Kieran Quaine

Kieran has over 30 years of experience in the fixed income market, primarily as a fund manager responsible for investing multiple billions of dollars across a broad range of investment mandates. His expertise includes proprietary interest rate trading, debt origination, syndication and institutional sales.

Portfolio Manager

Megan Romeo

Megan has over 12 years of experience in the Asia Pacific Fixed Income markets. Before joining FIIG, Megan was the Valuations Product Manager at S&P Capital IQ, which required a high level of local market knowledge and strong technical expertise in Fixed Income. Megan has been with FIIG's Managed Income Portfolio Service since its inception in 2015.

OVERVIEW PORTFOLIO COMPOSITION BENCHMARK PERFORMANCE PRICES DISTRIBUTION HISTORY DOCUMENTS FREQUENTLY ASKED QUESTIONS

FIIG Australian Bond Fund SQM Research Rating

Request Report

Investment Objective

To invest in Australian fixed interest securities including corporate bonds, government bonds and asset backed securities that provides investors with capital stability, income and returns in excess (after fees) of the benchmark index over the medium term (three to five years).

Why Invest in this Fund

For over 25 years, FIIG has been the leading independent fixed income specialists in Australia. The FIIG Australian Bond Fund is an actively managed, unit trust which utilises our proven duration and credit exposure investment strategies to pursue the dual goals of protecting investor capital and generating performance in excess of the Bloomberg AusBond Composite 0+Yr Index* over rolling three year periods.

With the significant increase in yields and return opportunity in the bond asset class the Fund provides investors the opportunity to obtain a diversified Australian Fixed Interest investment:

  • Actively managed by a team with 40 years of combined investment experience in fixed income markets
  • Over the last eight years they have outperformed their relative index’s across four key product groups and have maintained positive performance despite negative bond markets over the last five years
  • Daily liquidity
  • Daily online reporting
  • Targeting a yield above 5.25%** pa

The Fund comprises of a highly diversified exposure to a portfolio of over 50 Australian Fixed Investment Grade (IG) government and corporate debt securities.

* BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”)

**The yield target indicated for the fund is provided as an indicator based on the portfolio composition and does not guarantee actual yield.

Risks

An investment in the Fund is subject to general investment risks, credit risk, capital risk, regulatory and business risk, concentration risk, subordinated debt risk, liquidity risk, volatility/market risk, interest rate risk, operational risks, inflation risk, as well as specific risks of investing in a managed fund. Before making an investment, you should read the Product Disclosure Statement and Reference Guide in full to understand these risks.

Fund Composition

Sector Allocation

Chart Table
Sector Fund

Allocation by Credit Quality

Chart Table
Credit Rating Fund

Portfolio by Maturity

Chart Table
Maturity Fund

Benchmark

Bloomberg AusBond Composite 0+Yr Index

The Bloomberg AusBond Index is the benchmark for Australian debt markets. The indices include 800+ bonds with a total market value of AUD 1.15T. The Bloomberg AusBond Composite 0+Yr Index* measures the broad fixed-rate Australian debt market and is a composite of Treasury, Semi-Government, Supra/Sov, and Corporate bonds.

BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively "Bloomberg")

Performance

View the Fund Quarterly Commentary by clicking here

 

Fund Name1 month3 months6 months1 yearSince inception

 

Performance as at . Total returns are calculated using the sell (exit) price, net of management fees, gross of tax, as if distributions of income have been reinvested at the actual distribution reinvestment price, the actual returns received by an investor will depend on the timing, buy and exit price of individual transactions.

Figures showing a period of less than one year have not been adjusted to show an annual total return.

Return of capital and the performance of your investment in the fund are not guaranteed. Past performance is not a reliable indicator of future performance.

 

Prices

Unit price

Date Buy Nav Sell

 

Download price history

 

Please Note: The FIIG Australian Bond Fund is not priced on any NSW or national public holidays in line with the ASX trading calendar. The unit price for the Fund will also be delayed immediately after a distribution date (31 Dec, 31 Mar, 30 June and 30 Sept) for approximately five business days. Investors will receive their correct transaction unit price once these unit prices have been calculated.

Distribution History

Distribution Frequency

The Fund aims to distribute income quarterly, for the quarters ending March, June, September and December.

DateDistribution (Cents/Unit)Cum-Distribution PriceEx-Distribution Price
31 March  20240.61681.04981.0436
31 December 20230.27991.04081.0380


Distribution Notice and Timetable – March 2024

Tax Components 2023/2024 (available in August 2024)

Below are responses to frequently asked questions for the FIIG Australian Bond Fund. If you have any additional questions, please contact us at funds@fiig.com.au or contact your FIIG Relationship Manager.

If your query relates to your access or information available from the registry (including statements) please contact our dedicated team at Boardroom using fiig@boardroomlimited.com.au or call them on 02 8023 5469.

1. How can I invest in the Fund?

Step 1: Your application in the Fund can be submitted through one of the following methods:

  1. 1. Direct Online Application: Investors can invest in the Fund by applying online on the FIIG Australian Bond Fund online application form This form is hosted by Boardroom, the registry provider for the Fund. This application process takes between 5 and 10 minutes, depending on the account type.
  2. 2. Application through a FIIG Relationship Manager: If you prefer a personalised service, contact your FIIG Relationship Manager or the FIIG team at 1800 01 01 81 or email funds@fiig.com.au.

Step 2: After submitting your application, transfer your investment funds by BPAY or EFT to the Fund application bank account. You will receive an email from Boardroom that contains these details.

NOTE: This bank account is a trust account managed by the fund registry Boardroom. Accordingly, the account name Boardroom Pty Ltd may appear when you enter the payment details into your online banking.

Step 3: If you have any outstanding application documents such as AML documentation (drivers licence, passport or trust deed) or a wholesale investor certificate then you will need to provide these before your application can be finalised.

Step 4: Once your funds and any outstanding documentation is received, you will be issued units in the Fund, and Boardroom will send you a welcome email including a holdings statement confirming your investment. The daily cut-off is 2pm (AEDT) and funds received after this time will receive the next unit price.


2. Who can invest in the Fund?

The Fund is open to retail and wholesale investors with a minimum balance of $10,000 to invest.


3. Who is Boardroom?

Boardroom is the Unit Registry for the Fund and keeps a record of investors' investments in the Fund. They maintain records of investors' units held, TFNs (if provided), bank account details and details of distribution reinvestment plan participation. Boardroom is also responsible for performing services such as application and redemption processing, distribution payments and providing statements associated with these transactions.


4. How can I view my investment online?

Boardroom provides an investor portal called Investorserve to allow investors access to view the value of their investment and to view their statements.

Your welcome letter provides tailored instructions on how to register for an InvestorServe account.

Please refer to a generic version of these instructions below:

IssuerFIIG Securities Limited
Holding TypeUnit Trust
Reference NumberThis is your unit holding number, starting with a 'U'. This number was included in your first holding statement.
NameThe registered account name. This will depend on the entity in which you created your account. For example, it will be the trustee name if your account is a SMSF or trust. You can also find this in your first holding statement.
PostcodeThis will need to match the postcode we have recorded on your account.
CountryLeave this blank as the system will recognise Australia as the default Country when a postcode is entered.

 

Existing FIIG clients with a MYFIIG login can also view their investment balance through the MYFIIG client portal.


5. How is the Fund structured and how does it operate?

The Fund is structured as a managed investment scheme (MIS). As an investor in this scheme, you buy units in the scheme based on the amount you invest and the unit price on the day you invest. The value of each unit in the Fund and correspondingly the value of an investor's investment is determined daily considering the performance of the underlying assets of the Fund less the Fund management fee.

Some of the benefits of investing in a managed investment scheme (MIS) include:

  • diversification of assets;
  • professional management of the MIS; and
  • access to investment opportunities that may not be available to individual investors.

This list is not exhaustive and you should consider the appropriateness of the product with regard to your objectives, financial situation and needs. Before acquiring the product you should obtain the Information Memorandum and consider the offer statement before making any decision about whether to acquire the product. You should consider seeking advice from an authorised financial adviser before making an investment decision.


6. How much does it cost to invest in the Fund?

The Fund charges an annual investment management fee of 0.58% p.a. (inclusive of GST).

There are no application or exit fees charged by the Fund. However, there is a transaction fee known as a buy/sell spread, which amounts to 0.10% when entering and 0.10% when exiting the Fund. It is important to note that the buy/sell spread is not a fee paid to the Fund but will affect your investment return and is reflected in the application (buy) and redemption (sell) unit prices.

The purpose of this transaction fee is to cover trading expenses such as brokerage fees when investments are bought or sold in the Fund related to applications or redemptions. These fees ensure that only the investors buying or selling units incur the expenses associated with buying or selling any assets at a Fund Level.


7. How do distributions for the Fund work?

What are distributions?

The FIIG Australian Bond Fund makes regular payments to unitholders in the form of quarterly distributions. These distributions typically consist of a combination of income from interest (generated from cash or bonds) and realised capital gains from the sale of assets held by the Fund.

 

How much do I receive?

The income you receive is based on the number of units you hold at the end of the distribution period, regardless of how long you have held those units. Every unit in the Fund receives the same rate of distribution. This rate of distribution is published as a cents per unit distribution rate. The total distribution you receive is calculated by multiplying the cents per unit distribution rate by the number of units held at the end of the distribution period. 

 

How often are distributions paid?

The Fund pays distributions on a quarterly basis.

 

The Fund distributes income quarterly, corresponding to the quarters ending March, June, September, and December, provided there is distributable income available. Distribution payments occur in the month following a distribution date.

How can my distributions be paid to me? 

Unitholders can elect to receive the distribution in the form of cash (paid to their nominated bank account) or reinvestment, which is the purchase of additional units in the fund. 

 

Investors in the Fund can choose to have their income paid to an Australian bank account held in the name of the account holder or to have this distribution reinvested into the Fund to purchase additional units. Investors may elect to have income distributed on the initial fund application form. However, this preference can be changed up to 7 days before a distribution date.

Why is the unit price lower after the distribution?

The income and any realised capital gains that the Fund earns are reflected in the unit price; this increases the unit price over time. When a distribution is paid, these income and realised capital gains are paid to investors, and the unit price will fall by approximately the same amount as the distribution.

 

For example, if a fund has a unit price of $1 on 30 June and the fund declares a distribution of $0.04 per unit (4 cents per unit), unitholders invested as at 30 June will be entitled to receive the $0.04 per unit distribution. Consequently, the unit price of the fund will fall to $0.96 to account for the $0.04 per unit distribution.

 

How can my distributions be paid to me?

Unitholders can elect to receive the distribution in the form of cash (paid to their nominated bank account) or reinvestment, which is the purchase of additional units in the fund.

Why is my distribution different from one period to the next?

The payment cycles of the underlying securities in which a fixed-income fund invests, the overall performance of the fixed-income market, the composition of the fund's holdings, and the fund's expenses can all affect distribution payments from one period to the next.

 

How do I know when my Fund has paid a distribution?

At the end of each distribution period, you’ll receive a distribution statement for the Fund outlining the details and amount of the distribution you received. This statement will also notify you how we have paid this distribution based on your chosen payment method. 

 

When can I expect to receive my annual tax statement?

For each financial year, you’ll receive an Annual Tax Statement. The timing of dispatch of this document will be made available in mid-June each year and will be available on the Fund website. 



8. How do I withdraw part or all of my investment?

The Fund is open to withdrawals on a daily basis. It is possible to withdraw a portion of your investment, but you must maintain a minimum balance above $10,000. To initiate a withdrawal, simply complete the withdrawal form and send this form to the registry for processing ( fiig@boardroomlimited.com.au). You can find this form in the documents section of the Fund page.

Withdrawals will generally be paid to your nominated Bank Account within 5 Business Days.

Please be aware that there will be delays in the processing of withdrawals in the week following a distribution period. These delays will not impact the unit price received for a withdrawal, however they will increase the time in which an investor receives their withdrawal payment.


9. How do I complete tax for my investment in the Fund?

A tax statement is provided in August after the close of each financial year, which has all the information needed to complete your tax return in respect to any income received from the Fund. You will receive a tax statement for each fund you are invested in.

Investors also need to consider Capital Gains Tax (CGT) in periods they have sold or transferred their investments. The calculation of CGT from the sale or transfer of assets in the Fund will need to be calculated by a qualified accountant using information available from the statements you receive from the fund registry.


10. How to set up a Regular Investment Plan?

Setting up an Auto Invest plan is simple and only takes a few minutes by completing the Regular Investment Plan section through the online portal on InvestorServe. Simply navigate to the “Payment Instructions” and then “Savings Plan” section. Then follow the prompts to add or amend your Regular Investment (Savings) Plan.

For new applications there is a Regular Investment Plan section in the online join form to provide the amount and bank account for the Regular Investment Plan.

Can I edit or pause my Regular Investment Plan?

Yes, they can be modified or cancelled through the online InvestorServe portal. 

 

What happens to my Auto Invest on weekends and public holidays?

Direct Debits are processed on the 15th of each month. If this date falls on either a weekend or a public holiday, your Auto Invest transaction will be carried over to the following business day. 

 

What is a Regular Investment Plan? 

A regular investment plan allows you to commence investing in the Fund with as little as $1,000 on a monthly basis. The key advantage is that it removes the need to manually make investments, eliminating the need of organising for additional applications and ensuring you stay committed to your financial goals.