FIIG - The Fixed Income Experts

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Bond Portfolios

Created by Jon Sheridan, Head of Private Client Solutions

  • Conservative

    4.06%p.a. Return*

  • Balanced

    5.37%p.a. Return*

  • High Yield

    6.98%p.a. Return*

This portfolio has 13 securities with all weightings between 5.1% and 10.6%, yielding 4.06% pa. It is designed for investors wanting a 100% allocation of investment grade bonds. The returns shown are based on a $1 million investment. $250,000 is the minimum amount that can be invested with FIIG.

Bond types

Security types

Sectors

What makes up the portfolio

Holding Issuer Product Type Structure Industry Sector Capital Value Capital Price Currency % allocation Yield
70,000 Sydney Airport Finance CIB Senior Debt Infrastructure $100,010 142.73 USD 10.4% 2.41%
70,000 Queensland Treasury Corporation FCB Senior Debt Semi-Government $101,662 142.16 USD 10.6% 2.84%
80,000 Pacific National Finance Pty Ltd FRN Senior Debt Infrastructure $83,243 103.80 AUD 8.7% 6.79%
80,000 Aroundtown SA FCB Senior Debt Property $82,364 101.59 AUD 8.6% 4.21%
80,000 Insurance Australia Group Ltd FRN Tier 2 Insurance $81,382 100.86 AUD 8.5% 6.44%
75,000 Adani Abbot Point Terminal Pty Ltd FCB Senior Debt Infrastructure $77,897 102.00 AUD 8.1% 5.40%
80,000 JEM NSW Schools II Pty Ltd IAB Senior Debt Infrastructure $77,276 96.60 AUD 8.1% 2.46%
70,000 Suncorp Group Limited FRN Tier 2 Insurance $70,870 101.25 AUD 7.4% 3.84%
70,000 Liberty Financial Pty Ltd FCB Senior Debt Other Financials $70,000 100.00 AUD 7.3% 5.00%
70,000 Plenary Health (Casey) Finance Pty Ltd IAB Senior Debt Infrastructure $62,630 89.47 AUD 6.5% 2.37%
50,000 Bendigo and Adelaide Bank Ltd FRN Tier 2 Regional Bank $50,730 101.41 AUD 5.3% 4.10%
50,000 AMP Limited FRN Tier 2 Regional Bank $50,287 100.35 AUD 5.3% 4.65%
80,000 MPC Funding Ltd IAB Senior Debt Infrastructure $49,263 61.58 AUD 5.1% 1.96%

^ Pricing as at 28 February. 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.

An allocation to senior debt securities means your investment is prioritised above shareholders for repayment. This protects your investment in the event of a problem with one of the issuers, because legally if the company goes into liquidation, any available funds will be repaid to senior investors before equity investors.

This portfolio has 25 securities with weightings between 2.8% and 7.8%, yielding 5.37% pa. It is designed for investors wanting a balanced allocation of investment grade and sub investment grade bonds. The returns shown are based on a $1 million investment. $250,000 is the minimum amount that can be invested with FIIG.

Bond types

Security types

Sectors

What makes up the portfolio

Holding Issuer Product Type Structure Industry Sector Capital Value Cost Price Currency % allocation Yield to maturity
55,000 Sydney Airport Finance CIB Senior Debt Infrastructure $78,579 142.73 USD 7.8% 2.41%
70,000 Pacific National Finance Pty Ltd FRN Senior Debt Infrastructure $72,838 103.80 USD 7.2% 4.29%
70,000 JEM NSW Schools II Pty Ltd IAB Senior Debt Infrastructure $67,617 96.60 AUD 6.7% 4.96%
60,000 Plenary Health (Casey) Finance Pty Ltd IAB Senior Debt Infrastructure $53,683 89.47 AUD 5.3% 2.37%
50,000 Virgin Australia Holding FCB Senior Debt Aviation $50,000 100.00 AUD 5.0% 10.57%
50,000 Centuria Capital 2 Fund FRN Senior Debt Property $51,278 101.80 AUD 5.1% 5.36%
50,000 Bendigo and Adelaide Bank Ltd FRN Tier 2 Regional Bank $50,730 101.41 AUD 5.0% 4.10%
50,000 AMP Limited FRN Tier 2 Regional Bank $50,287 100.35 AUD 5.0% 4.65%
40,000 Liberty Financial Pty Ltd FRN Senior Debt Other Financials $40,000 100.00 AUD 4.0% 5.00%
30,000 StockCo Holdings Pty Limited FCB Senior Debt Other Corporate $31,439 104.85 AUD 3.1% 6.70%
30,000 SCT Logistics FCB Senior Debt Other Corporate $31,581 103.80 AUD 3.1% 5.86%
30,000 Aviation Training Investments Pty Ltd FCB Senior Debt Other Corporate $31,380 102.30 AUD 3.1% 6.04%
30,000 Zenith Pacific Pty Ltd FRN Senior Debt Resources $30,800 102.20 AUD 3.1% 6.89%
30,000 Maurice Blackburn Pty Limited FCB Senior Debt Other Corporate $30,654 102.10 AUD 3.0% 6.77%
30,000 RSEA Finance Pty Ltd FCB Senior Debt Other Corporate $30,863 104.55 USD 3.1% 5.06%
30,000 Elanor Investors Limited FCB Senior Debt Property $31,558 101.61 USD 3.1% 4.46%
30,000 Moneytech Finance Pty Ltd FCB SubDebt Other Financials $30,509 100.85 USD 3.0% 5.68%
30,000 NextDC Ltd FCB Senior Debt Other Corporate $30,963 101.75 USD 3.1% 5.41%
30,000 Liberty Financial Pty Ltd FCB Senior Debt Other Financials $30,779 100.55 USD 3.1% 4.82%
30,000 ZipMoney FCB SubDebt Other Financials $30,093 99.85 USD 3.0% 8.68%
30,000 Merredin Energy Pty Ltd FCB Senior Debt Other Corporate $31,067 103.20 USD 3.1% 6.40%
30,000 CF Asia Pacific Group Pty Ltd FCB SubDebt Other Corporate $30,147 100.40 AUD 3.0% 8.08%
30,000 MPC Funding Ltd FCB Senior Debt Infrastructure $28,553 95.18 AUD 2.8% 2.30%
30,000 Impact Group Aus Pty Ltd FCB Senior Debt Property $30,608 101.55 AUD 3.0% 7.53%
30,000 W A Stockwell FCB Senior Debt Property $30,885 101.55 AUD 3.1% 6.78%

^ Pricing as at 28 February 2019. 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 a mix of investment grade and sub investment grade bonds to generate the return, in conjunction with differing security types

  • 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.

An allocation to senior debt securities means your investment is prioritised above shareholders for repayment. This protects your investment in the event of a problem with one of the issuers, because legally if the company goes into liquidation, any available funds will be repaid to senior investors before equity investors.

This portfolio has 21 securities with weightings between 1.4% and 16.8%, yielding 6.98% pa. It is designed for investors seeking a higher return and who are comfortable with a corresponding increase in credit risk. The returns shown are based on a $1.5 million investment. $250,000 is the minimum amount that can be invested with FIIG.

Bond types

Security types

Sectors

What makes up the portfolio

Holding Security Description Product Type Structure Industry Sector Capital Value Capital price Currency % allocation Yield
200,000 Adani Abbot Point Terminal Pty Ltd FCB Senior Debt Infrastructure 252,260 88.50 USD 16.8% 8.03%
100,000 NCIG Holdings Pty Ltd FCB Senior Debt Resources 176,342 119.75 USD 11.7% 9.00%
70,000 Sydney Airport Finance CIB Senior Debt Infrastructure 100,010 142.73 AUD 6.7% 4.91%
60,000 AMP Limited FRN Tier 2 Regional Bank 60,344 100.35 AUD 4.0% 4.65%
60,000 AT&T Inc FCB Senior Debt Telecoms 63,844 104.30 AUD 4.2% 6.55%
50,000 Pacific National Finance Pty Ltd FRN Senior Debt Infrastructure 52,027 103.80 AUD 3.5% 4.29%
50,000 Virgin Australia Holding FCB Senior Debt Aviation 50,000 100.00 AUD 3.3% 8.07%
50,000 Pioneer Credit Ltd FRN SubDebt Other Financials 41,162 101.50 AUD 2.7% 6.47%
50,000 RSEA Finance Pty Ltd FCB Senior Debt Other Corporate 41,150 102.10 AUD 2.7% 6.84%
50,000 Centuria Capital 2 Fund FRN Senior Debt Property 41,022 101.80 AUD 2.7% 5.36%
50,000 Bendigo and Adelaide Bank Ltd FRN Tier 2 Regional Bank 41,171 103.03 AUD 2.7% 3.40%
50,000 ZipMoney FRN SubDebt Other Financials 40,124 99.85 AUD 2.7% 8.68%
50,000 CF Asia Pacific Group Pty Ltd FCB SubDebt Other Corporate 21,103 100.40 AUD 1.4% 8.08%
40,000 Sprint Corp FCB Senior Debt Telecoms 73,937 104.55 USD 4.9% 5.06%
40,000 HCA Inc FCB Senior Debt Other Corporate 75,787 101.61 USD 5.0% 4.46%
40,000 Harland Clarke Holdings FCB Senior Debt Other Corporate 70,522 100.00 USD 4.7% 6.87%
40,000 Barminco Finance Pty Ltd FCB Senior Debt Resources 71,896 100.00 USD 4.8% 6.62%
40,000 Hertz Corporation FCB Senior Debt Other Corporate 73,280 102.00 USD 4.9% 6.92%
40,000 IAMGOLD Corp FCB Senior Debt Resources 72,458 100.10 USD 4.8% 6.98%
40,000 Dean Foods Company FCB Senior Debt Other Corporate 43,446 74.00 USD 2.9% 15.39%
30,000 W A Stockwell FCB Senior Debt Property 41,180 101.55 AUD 2.7% 6.78%

^ Pricing as at 28 February 2019. 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 a mix of investment grade and sub investment grade bonds to generate the return, in conjunction with differing security types

  • 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.

An allocation to senior debt securities means your investment is prioritised above shareholders for repayment. This protects your investment in the event of a problem with one of the issuers, because legally if the company goes into liquidation, any available funds will be repaid to senior investors before equity investors.

* Return is yield to maturity. Subject to change and before fees. Please see our FSG for any applicable fees.
† Weighted average life for maturity.

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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.

Copyright © 2019 FIIG Securities Limited | ABN 68 085 661 632 | AFSL No 224659 | Financial Services GuideSitemap | About us
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* Based on FIIG’s high yield sample portfolio. Click here to view. Subject to change and before fees. Please see our FSG for any applicable fees.