Holding bonds in custody for our clients
FIIG’s Custodial Service supports your direct investment in fixed income across a range of investment sizes, starting from $10,000 per investment. This is carried out through safe keeping of your investments, settlements of purchases and sales, collection and processing of coupons and maturities on your behalf, and the provision of ongoing portfolio reporting, valuation and analysis.
With FIIG’s Custodial Service:
- You can have full confidence in your fixed income holdings being securely held on your behalf.
- You retain beneficial ownership of the bonds held in your FIIG Custodial Account.
- A GS007 audit is performed by PricewaterhouseCoopers on an annual basis, ensuring an independent review of FIIG’s Custodial Service. The GS007 audit report is made available to FIIG’s clients upon request.
- You have a choice of holding AUD or foreign currency bonds in your FIIG Custodial Account.
- FIIG is licenced to provide custodial services and regulated by ASIC.
- You’re kept completely informed. You have secure 24/7 online access to your portfolio information, detailing:
- Investments and holding valuations
- Investment income
- Investment transactions
- Credit ratings (wholesale clients only)
- Contract notes, coupons and maturity advice
- Online bond buy and sell requests
- You also have access to portfolio tools and market data, to help you stay right on top of your investments and cash flow forecasting tools to help you plan and manage your expected future income.
- You save time and money. FIIG administers corporate actions on your behalf, including processing coupons and investment maturities. In addition, your annual statement from us provides you and/or your accountant with information to assist in the completion of your tax return.
In addition, income and funds from maturing investments are paid into your nominated bank account generally within two days of the issuer paying the funds to FIIG.
Why do I need a custodian?
To buy bonds through FIIG you are required to have custody arrangements in place. FIIG offers it’s clients a custodial service. Or, you can make independent custody arrangements.
How does the FIIG Custodial Service work?
- You open a custody account with FIIG
- Assets are held in safe custody in FIIG’s DirectBonds Custody Account with the custodian bank (JPMorgan)
- Coupons (interest payments) and maturities are paid to your bank account
- Bonds are held until maturity or until you sell them
- Ownership of your bonds remains with you (more on ownership below)
Ownership of your bonds
The beneficial ownership of your bonds, held in custody using FIIG’s Custodial Services, remains with you at all times. Your bonds can only be bought, sold, or otherwise dealt with in accordance with your instructions to FIIG. This means that your bonds are your assets at all times and do not form part of the assets of FIIG or the custodial bank. Therefore, if FIIG or the custodial bank were to cease operations, your bonds are safe and remain yours.