Wholesale Corporate Bond Portfolios

Created by Leigh Winton, Head of Portfolio Strategy

  • High Yield

    6.37%p.a. Return*

  • Balanced

    5.81%p.a. Return*

  • Conservative

    4.21%p.a. Return*

This portfolio has 22 securities with weightings between 1.5% and 16.8%, yielding 6.55% pa. It is designed for seeking a higher return and who are comfortable with a corresponding increase in credit risk. The returns shown are based on a $1 million investment. $250,000 is the minimum amount that can be invested with FIIG.

Projected first five year coupon income

Security types

Sectors

What makes up the portfolio

Holding Security Description Product Type Structure Industry Sector Cost Value (Gross) Cost price Currency % allocation Purchase Yield
200,000 AdaniAbbot-4.45%-15Dec22-USD FCB Senior Debt Infrastructure $255,375 89.00 USD 16.8% 7.61%
100,000 NCIG-12.5%-31Mar27c - USD FCB Senior Debt Resources $176,355 124.15 USD 11.8% 8.43%
70,000 ConQuest 2018-1 C FRN MBS RMBS $71,704 102.20 AUD 4.8% 4.69%
50,000 SYDAIR-ILB-3.12%-20Nov30 CIB Senior Debt Infrastructure $70,516 140.20 AUD 4.7% 5.05%
40,000 SPRINT-7.625%-15Feb25-USD FCB Senior Debt Telecom $59,966 104.85 USD 4.0% 6.66%
40,000 HCA-5.25%-15Apr25-USD FCB Senior Debt Other Corporate $58,427 103.50 USD 3.9% 4.62%
40,000 IAMGOLD-7.00%-15Apr25-USD FCB Senior Debt Resources $57,572 101.90 USD 3.9% 6.63%
40,000 BARMINCO-6.625%-15May22-USD FCB Senior Debt Resources $58,610 101.00 USD 3.8% 6.30%
40,000 HARLAND-6.875%-01Mar20-USD FCB Senior Debt Other Corporate $57,254 100.50 USD 3.8% 6.47%
40,000 HERTZ-7.625%-01Jun22-USD FCB Senior Debt Other Corporate $55,977 96.20 USD 3.7% 8.88%
50,000 PacNational-BBSW+2.60%-12May27 FRN Senior Debt Infrastructure $53,581 106.15 AUD 3.6% 4.41%
40,000 DEANFOODS-6.50%-15Mar23-USD FCB Senior Debt Other Corporate $53,246 93.70 USD 3.6% 8.24%
50,000 VIRGIN-8.25%-30May23 FCB Senior Debt Other Corporate $54,399 105.30 AUD 3.6% 6.88%
50,000 Pioneer-BBSW+5.25%-22Mar22 FRN Senior Debt Other Financials $52,025 103.30 AUD 3.5% 6.33%
50,000 RSEA-7.75%-27Oct21 FCB Senior Debt Other Corporate $51,163 102.20 AUD 3.5% 6.90%
50,000 IAG-BBSW+2.10%-15Jun24c FRN Lower Tier 2 Insurance $51,480 102.45 AUD 3.5% 4.07%
50,000 Centuria-BBSW+4.25%-21Apr23 FRN Senior Debt Funds $50,093 100.00 AUD 3.4% 6.61%
50,000 ZipMoney Trust 2017-1 B FRN SubDebt Other Financials $50,723 100.95 AUD 3.4% 6.21%
50,000 AT&T-4.60%-19Sep28 FCB Senior Debt Telecom $51,030 101.50 AUD 3.4% 4.41%
50,000 CFAsiaPacific-8.35%-30Nov20 FCB SubDebt Other Corporate $44,439 102.75 AUD 3.0% 6.75%
40,000 SUNCORP-BBSW+2.15%-05Dec23c FRN Lower Tier 2 Insurance $41,419 102.90 AUD 2.8% 3.94%
30,000 WAS-7.75%-29Jun21 FCB Senior Debt Property $22,234 103.05 AUD 1.5% 6.15%

^ Pricing as at 1 November 2018. Subject to change.

How did we choose this portfolio?

Each bond is selected to ensure the overall portfolio:

Preservation

Is designed to preserve
your capital

Cash flow

Generates ongoing
cash flow

Diversity and balance

Provides diversity
and balance

We combine fixed, floating and inflation linked securities and ensure all the bonds in the portfolio are investment grade securities.

  • Fixed Rate Bonds pay the same coupon amount throughout the life of the bonds, allowing you to predict cash flow.
  • Floating Rate Bonds move with the market interest rate and increase your return when rates rise.
  • Inflation Linked Bonds allow you to protect against rising inflation.

High senior debt allocation means your interest and principal is prioritised above shareholders for repayment. This protects your capital and income in the event of a problem with one of the invested companies: legally, if the company goes into liquidation any available funds will be repaid to senior investors first. 

This portfolio has 24 securities with weightings between 1.9% and 7.7%, yielding 5.49% pa. It is designed for investors wanting a balanced approach. The returns shown are based on a $1 million investment. $250,000 is the minimum amount that can be invested with FIIG.

Projected first five year coupon income

Security types

Sectors

What makes up the portfolio

Holding Issuer Product Type Structure Industry Sector Cost Value (Gross) Cost Price % allocation Purchase Yield
55,000 SYDAIR-ILB-3.12%-20Nov30 CIB Senior Debt Infrastructure $77,567 140.20 7.7% 5.05%
70,000 PacNational-BBSW+2.60%-12May27 FRN Senior Debt Infrastructure $75,013 106.15 7.4% 4.41%
70,000 ConQuest 2018-1 C FRN MBS RMBS $71,704 102.20 7.2% 4.69%
70,000 JEM NSW Schools IAB-0%-28Nov35 IAB Senior Debt Infrastructure $69,343 99.06 6.9% 4.90%
65,000 AdaniAbbot-7.10%-29May20 FCB Senior Debt Infrastructure $68,886 102.95 6.8% 5.12%
60,000 PHF-IAB-0%-15Sep29 IAB Senior Debt Infrastructure $54,691 91.15 5.5% 4.72%
50,000 VIRGIN-8.25%-30May23 FCB Senior Debt Other Corporate $54,399 105.30 5.3% 6.88%
50,000 Centuria-BBSW+4.25%-21Apr23 FRN Senior Debt Funds $50,093 100.00 5.1% 6.61%
40,000 SUNCORP-BBSW+2.15%-05Dec23c FRN Lower Tier 2 Insurance $41,419 102.90 4.1% 3.94%
40,000 DBCT(DALRYMPLE)-FRN+30bps-09Jun21 FRN Senior Debt Infrastructure $38,570 96.10 3.9% 3.96%
30,000 StockCo-8.75%-6Oct21c FCB SubDebt Other Financials $31,831 106.20 3.2% 6.42%
30,000 SCT-7.65%-24Jun21 FCB Senior Debt Infrastructure $32,471 105.50 3.2% 5.38%
30,000 MAURICE-7.45%-31Aug22 FCB SubDebt Other Corporate $31,330 103.15 3.1% 6.51%
30,000 AAT-7.50%-13Nov20 FCB Senior Debt Other Corporate $31,898 102.80 3.1% 6.01%
30,000 ZENITH-7.55%-10Aug25 FCB Senior Debt Energy $31,506 103.30 3.1% 6.64%
30,000 RSEA-7.75%-27Oct21 FCB Senior Debt Other Corporate $30,698 102.20 3.1% 6.90%
30,000 Moneytech-BBSW+4.65%-17Apr20c FRN Lower Tier 2 Other Financials $30,687 102.00 3.1% 5.20%
30,000 NEXTDC-6.00%-09Jun22 FCB Senior Debt Other Corporate $31,300 102.10 3.1% 5.35%
30,000 ZipMoney Trust 2017-1 B FRN SubDebt Other Financials $30,434 100.95 3.1% 6.21%
30,000 Merredin-7.50%-15Nov22 FCB Senior Debt Energy $29,912 102.80 3.0% 6.59%
30,000 CFAsiaPacific-8.35%-30Nov20 FCB SubDebt Other Corporate $26,664 102.75 2.6% 6.75%
30,000 IMPACT-8.50%-12Feb21 FCB Senior Debt Other Corporate $24,544 103.30 2.4% 6.67%
30,000 WAS-7.75%-29Jun21 FCB Senior Debt Property $22,234 103.05 2.2% 6.15%
30,000 NRW-7.50%-19Dec20 FCB Senior Debt Other Corporate $18,521 102.20 1.9% 5.51%

^ Pricing as at 1 November 2018. Subject to change.

How did we choose this portfolio?

Each bond is selected to ensure the overall portfolio:

Preservation

Is designed to preserve
your capital

Cash flow

Generates ongoing
cash flow

Diversity and balance

Provides diversity
and balance

We combine fixed, floating and inflation linked securities and ensure all the bonds in the portfolio are investment grade securities.

  • Fixed Rate Bonds pay the same coupon amount throughout the life of the bonds, allowing you to predict cash flow.
  • Floating Rate Bonds move with the market interest rate and increase your return when rates rise.
  • Inflation Linked Bonds allow you to protect against rising inflation.

High senior debt allocation means your interest and principal is prioritised above shareholders for repayment.  This protects your capital and income in the event of a problem with one of the invested companies: legally, if the company goes into liquidation any available funds will be repaid to senior investors first. 

This portfolio has 13 securities with all weightings between 4.9% and 9.5%, yielding 4.37% pa. It is designed for investors wanting a conservative approach. The returns shown are based on a $1 million investment. $250,000 is the minimum amount that can be invested with FIIG.

Projected first five year coupon income

Security types

Sectors

What makes up the portfolio

Holding Issuer Product Type Structure Industry Sector Cost Value (Gross) Cost Price % allocation Purchase Yield
70,000 SYDAIR-ILB-3.12%-20Nov30 CIB Senior Debt Infrastructure $98,722 140.20 9.6% 5.05%
70,000 QTC-6.5%-14Mar33 FCB Senior Debt Semi-Government $97,192 137.97 9.5% 3.19%
100,000 DBCT(DALRYMPLE)-FRN+30bps-09Jun21 FRN Senior Debt Infrastructure $96,424 96.10 9.4% 3.96%
80,000 PacNational-BBSW+2.60%-12May27 FRN Senior Debt Infrastructure $85,730 106.15 8.3% 4.41%
80,000 IAG-BBSW+2.10%-15Jun24c FRN Lower Tier 2 Insurance $82,348 102.43 8.0% 4.08%
80,000 Aroundtown-4.50%-14May25 FCB Senior Debt Property $83,082 101.75 7.9% 4.19%
80,000 JEM NSW Schools IAB-0%-28Nov35 IAB Senior Debt Infrastructure $79,249 99.06 7.7% 4.90%
75,000 AdaniAbbot-7.10%-29May20 FCB Senior Debt Infrastructure $79,484 102.95 7.6% 5.12%
70,000 SUNCORP-BBSW+2.15%-05Dec23c FRN Lower Tier 2 Insurance $72,483 102.90 7.0% 3.94%
70,000 ConQuest 2018-1 C FRN MBS RMBS $71,704 102.20 7.0% 4.69%
70,000 LibertyFin-5.10%-01Jun20 FCB Senior Debt Other Financials $72,377 101.25 7.0% 4.27%
70,000 PHF-IAB-0%-15Sep29 IAB Senior Debt Infrastructure $63,806 91.15 6.2% 4.72%
80,000 MPC-IAB-31Dec25 IAB Senior Debt Infrastructure $50,274 62.84 4.9% 4.57%

^ Pricing as at 1 November 2018. Subject to change.

How did we choose this portfolio?

Each bond is selected to ensure the overall portfolio:

Preservation

Is designed to preserve
your capital

Cash flow

Generates ongoing
cash flow

Diversity and balance

Provides diversity
and balance

We combine fixed, floating and inflation linked securities and ensure all the bonds in the portfolio are investment grade securities.

  • Fixed Rate Bonds pay the same coupon amount throughout the life of the bonds, allowing you to predict cash flow.
  • Floating Rate Bonds move with the market interest rate and increase your return when rates rise.
  • Inflation Linked Bonds allow you to protect against rising inflation.

High senior debt allocation means your interest and principal is prioritised above shareholders for repayment.  This protects your capital and income in the event of a problem with one of the invested companies: legally, if the company goes into liquidation any available funds will be repaid to senior investors first. 

* Return is yield to maturity. Subject to change and before fees. Please see our FSG for any applicable fees.
† Weighted average life for maturity.
^ Based on currency exchange rate as at 01/11/18. Bond will be held in foreign currency.

Copyright The contents of this document are copyright. Other than under the Copyright Act 1968 (Cth), no part of it may be reproduced or distributed to a third party without FIIG’s prior written permission other than to the recipient’s accountants, tax advisors and lawyers for the purpose of the recipient obtaining advice prior to making any investment decision. FIIG asserts all of its intellectual property rights in relation to this document and reserves its rights to prosecute for breaches of those rights.

Disclaimer Certain statements contained in the information may be statements of future expectations and other forward-looking statements. These statements involve subjective judgement and analysis and may be based on third party sources and are subject to significant known and unknown uncertainties, risks and contingencies outside the control of the company which may cause actual results to vary materially from those expressed or implied by these forward looking statements. Forward-looking statements contained in the information regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. You should not place undue reliance on forward-looking statements, which speak only as of the date of this report. Opinions expressed are present opinions only and are subject to change without further notice.

No representation or warranty is given as to the accuracy or completeness of the information contained herein. There is no obligation to update, modify or amend the information or to otherwise notify the recipient if information, opinion, projection, forward-looking statement, forecast or estimate set forth herein, changes or subsequently becomes inaccurate.

FIIG shall not have any liability, contingent or otherwise, to any user of the information or to third parties, or any responsibility whatsoever, for the correctness, quality, accuracy, timeliness, pricing, reliability, performance or completeness of the information. In no event will FIIG be liable for any special, indirect, incidental or consequential damages which may be incurred or experienced on account of the user using information even if it has been advised of the possibility of such damages.

FIIG provides general financial product advice only. As a result, this document, and any information or advice, has been provided by FIIG without taking account of your objectives, financial situation and needs. FIIG’s AFS Licence does not authorise it to give personal advice. Because of this, you should, before acting on any advice from FIIG, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If this document, or any advice, relates to the acquisition, or possible acquisition, of a particular financial product, you should obtain a product disclosure statement relating to the product and consider the statement before making any decision about whether to acquire the product. Neither FIIG, nor any of its directors, authorised representatives, employees, or agents, makes any representation or warranty as to the reliability, accuracy, or completeness, of this document or any advice. Nor do they accept any liability or responsibility arising in any way (including negligence) for errors in, or omissions from, this document or advice. FIIG, its staff and related parties earn fees and revenue from dealing in the securities as principal or otherwise and may have an interest in any securities mentioned in this document. Any reference to credit ratings of companies, entities or financial products must only be relied upon by a ‘wholesale client’ as that term is defined in section 761G of the Corporations Act 2001 (Cth). FIIG strongly recommends that you seek independent accounting, financial, taxation, and legal advice, tailored to your specific objectives, financial situation or needs, prior to making any investment decision. FIIG does not make a market in the securities or products that may be referred to in this document. A copy of FIIG’s current Financial Services Guide is available at www.fiig.com.au/fsg.

An investment in notes or corporate bonds should not be compared to a bank deposit. Notes and corporate bonds have a greater risk of loss of some or all of an investor’s capital when compared to bank deposits. Past performance of any product described on any communication from FIIG is not a reliable indication of future performance. Forecasts contained in this document are predictive in character and based on assumptions such as a 2.5% p.a. assumed rate of inflation, foreign exchange rates or forward interest rate curves generally available at the time and no reliance should be placed on the accuracy of any forecast information. The actual results may differ substantially from the forecasts and are subject to change without further notice. FIIG is not licensed to provide foreign exchange hedging or deal in foreign exchange contracts services. The information in this document is strictly confidential. If you are not the intended recipient of the information contained in this document, you may not disclose or use the information in any way. No liability is accepted for any unauthorised use of the information contained in this document. FIIG is the owner of the copyright material in this document unless otherwise specified.

The FIIG research analyst certifies that any views expressed in this document accurately reflect their views about the companies and financial products referred to in this document and that their remuneration is not directly or indirectly related to the views of the research analyst. This document is not available for distribution outside Australia and New Zealand and may not be passed on to any third party without the prior written consent of FIIG. FIIG, its directors and employees.