by
FIIG Securities | Apr 01, 2024
FIIG Securities, Australia’s homegrown leading provider of fixed-income investment solutions to private clients, advisors and planners, middle markets and institutions, is pleased to announce it has been awarded a “Superior” High Investment Grade, four-star rating by SQM Research for the inaugural FIIG Australian Bond Fund, as well as launching the Fund to Retail investors, presenting an opportunity to diversify portfolios through an actively managed, all-investment grade AUD Fund.
The Superior rating from SQM Research, assigned in March 2024, makes the Fund suitable for inclusion on most Approved Product Lists (APLs). SQM Research highlighted the Fund as a High Investment Grade product with potential to outperform over the medium-to-long term, noting its high-calibre investment team and robust investment process, and meaningful historical performance from the Managed Income Portfolios Service (MIPS).
In managing the Fund, the investment team implements both duration and credit exposure investment strategies with the intention of prioritising providing investors with capital preservation, a total return in excess of the benchmark and the maximisation of income distribution*.
The FIIG Australian Bond Fund aims to deliver capital stability, income, and returns exceeding the benchmark through investment in a diversified portfolio of Australian fixed-interest securities, including government and corporate bonds, mortgage-backed securities, asset-backed securities, cash, and enhanced cash instruments. Actively managed, the Fund targets a net return surpassing the Bloomberg AusBond Composite Index over rolling three-year periods. With the flexibility to invest in a wide range of investment-grade fixed-income securities, including those outside the benchmark universe, the Fund strategically takes on significant duration, yield curve, and credit risk relative to the benchmark.
Previously available exclusively to Wholesale investors, the Fund is now accessible to Retail investors with a minimum initial application of just $10,000. This move comes in response to the growing demand for fixed income opportunities amidst rising yields and return potential within the fixed income asset class.
Managed by FIIG’s highly experienced Portfolio Management Team (PMT), led by Head of Investment Management Kieran Quaine and Portfolio Manager Megan Romeo, the Fund has already demonstrated strong performance, delivering a total return of 4.04%* since its launch in October 2023.
“We are excited to receive a High Investment Grade Rating from SQM Research and to extend the opportunity to invest in the FIIG Australian Bond Fund to Retail investors,” said Alex Welch, CEO at FIIG Securities. “With a focus on delivering steady income and higher expected returns than cash, the Fund provides a compelling option for investors seeking to optimise and diversify their portfolios with quality Australian bonds.”
Key features of the FIIG Australian Bond Fund include:
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Targeting a yield above 5.25%** per annum
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Quarterly distributions providing a steady income
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Diversification across investment grade Australian fixed income securities, including government, corporate, and asset-backed securities
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Daily liquidity with the ability for daily applications and redemptions
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Transparent reporting with daily updated investment balances and quarterly factsheets
Wholesale investors and financial advisors can request a copy of the SQM Research Report by emailing Adam Kirk, Head of Distribution - Financial Intermediaries at FIIG Securities, at adam.kirk@fiig.com.au
*Performance as at 29 February 2024. 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 and 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.
**The yield target indicated for the fund is provided as an indicator based on the portfolio composition and does not guarantee actual yield.
Equity Trustees Limited (“Equity Trustees”) (ABN 46 004 031 298), AFSL 240975, is the Responsible Entity for the FIIG Australian Bond Fund ("the Fund"). Equity Trustees is a subsidiary of EQT Holdings Limited (ABN 22 607 797 615), a publicly listed company on the Australian Securities Exchange (ASX: EQT).
This release has been prepared by FIIG Securities Limited Limited (ABN 22 607 797 615) (“FIIG”) to provide you with general information only. In preparing this information, we did not take into account the investment objectives, financial situation or particular needs of any particular person. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information. Neither FIIG, Equity Trustees nor any of its related parties, their employees or directors, provide and warranty of accuracy or reliability in relation to such information or accepts any liability to any person who relies on it. Past performance should not be taken as an indicator of future performance. You should obtain a copy of the Product Disclosure Statement before making a decision about whether to invest in this product.
The Fund’s Target Market Determination is available at www.fiig.com.au/tmd. A Target Market Determination is a document which is required to be made available from 5 October 2021. It describes who this financial product is likely to be appropriate for (i.e. the target market), and any conditions around how the product can be distributed to investors. It also describes the events or circumstances where the Target Market Determination for this financial product may need to be reviewed.
The rating referenced on this page is issued by SQM Research Pty Ltd ABN 93 122 592 036 AFSL 421913. SQM Research is an investment research firm that undertakes research on investment products exclusively for its wholesale clients, utilising a proprietary review and star rating system. The SQM Research star rating system is of a general nature and does not take into account the particular circumstances or needs of any specific person. The rating may be subject to change at any time. Only licensed financial advisers may use the SQM Research star rating system in determining whether an investment is appropriate to a person’s particular circumstances or needs. You should read the product disclosure statement and consult a licensed financial adviser before making an investment decision in relation to this investment product. SQM Research receives a fee from the Fund Manager for the research and rating of the managed investment scheme.