FIIG - The Fixed Income Experts

Bond Portfolios

  • Conservative

    3.26%p.a. Return^

  • Balanced

    4.12%p.a. Return^

  • High Yield

    5.95%p.a. Return^
    8.43% subject to ANZ and WBC being called in 2022*

This portfolio has 10 securities with weightings between 9.3% and 11.6%, yielding 3.26% pa. It is designed for investors wanting a 100% allocation of investment grade bonds. The returns shown are based on ~$500,000 investment. $250,000 is the minimum amount that can be invested with FIIG.

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Bond types
Security types
Ratings
Sectors
Portfolio breakdown
Holding Issuer Maturity/Call Date Bond Type Structure Ratings Industry Sector Capital Value Capital Price Currency % allocation Yield
40,000 Sydney Airport Nov 2030 CIB Senior Debt IG Infrastructure 59,780 149.45 AUD 11.6% 4.06%
50,000 QBE Aug 2026 FRN Tier 2 IG Insurance 51,202 102.40 AUD 9.9% 2.70%
50,000 Ausnet Services Oct 2025 FRN SubDebt IG Infrastructure 51,089 102.18 AUD 9.9% 2.94%
50,000 Pacific National Sep 2029 FCB Senior Debt IG Infrastructure 51,981 103.96 AUD 10.1% 3.19%
50,000 Genworth Jul 2025 FRN Tier 2 IG Insurance 52,525 105.05 AUD 10.2% 4.11%
50,000 Liberty Funding Pty Ltd Nov 2022 FRN Senior Debt IG Property 48,900 97.80 AUD 9.5% 3.99%
50,000 JEM NSW Schools II Pty Ltd Nov 2035 IAB Senior Debt IG Infrastructure 51,246 102.49 AUD 9.9% 2.92%
50,000 Brisbane Airport Dec 2030 FCB Senior Debt IG Infrastructure 53,433 106.87 AUD 10.3% 3.69%
30,000 Queensland Treasury Corporation Mar 2033 FCB Senior Debt IG Semi Government 48,441 161.47 AUD 9.4% 1.18%
50,000 Liberty Financial Pty Ltd Feb 2024 FRN Senior Debt IG Other Financials 48,325 96.65 AUD 9.3% 3.58%

^ Pricing as at 30 September 2020. Subject to change.

Portfolio characteristics

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 15 securities with weightings between 3.7% and 11.8%, yielding 4.12% 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 ~$600,000 investment. $250,000 is the minimum amount that can be invested with FIIG.

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Bond types
Security types
Ratings
Sectors
What makes up the portfolio
Holding Issuer Maturity / Call Date Product Type Structure Ratings Industry Sector Capital Value Cost Price Currency % allocation Yield to maturity
50,000 Sydney Airport Nov 2030 CIB Senior Debt IG Infrastructure 74,725 149.45 AUD 11.8% 4.06%
50,000 Genworth Jul 2025 FRN Tier 2 IG Insurance 52,525 105.05 AUD 8.3% 4.11%
50,000 QBE Aug 2026 FRN Tier 2 IG Insurance 51,202 102.40 AUD 8.1% 2.70%
50,000 Pacific National Sep 2029 FCB Senior Debt IG Infrastructure 51,981 103.96 AUD 8.2% 3.19%
50,000 Liberty Funding Pty Ltd Nov 2022 FRN Senior Debt IG Property 48,900 97.80 AUD 7.8% 3.99%
50,000 JEM NSW Schools Nov 2035 IAB Senior Debt IG Infrastructure 51,246 102.49 AUD 8.1% 2.92%
50,000 Brisbane Airport Dec 2030 FCB Senior Debt IG Infrastructure 53,433 106.87 AUD 8.5% 3.69%
50,000 Liberty Finance Feb 2024 FRN Senior Debt IG Other Financials 48,325 96.65 AUD 7.7% 3.58%
50,000 Ausnet Services Oct 2025 FRN SubDebt IG Infrastructure 51,089 102.18 AUD 8.1% 2.94%
25,000 ZIP Money May 2021 FRN SubDebt NR Other Financials 24,975 99.90 AUD 4.0% 6.28%
25,000 Sunland Oct 2024 FCB Senior Debt NR Property 23,613 94.45 AUD 3.7% 7.80%
25,000 SCT Logistics Jun 2024 FCB Senior Debt NR Other Corporate 24,850 99.40 AUD 3.9% 6.68%
25,000 Omni Bridgeway Limited Jan 2026 FCB Senior Debt NR Other Financials 25,200 100.80 AUD 4.0% 5.47%
25,000 WorkPac Jul 2022 FRN SubDebt NR Other Financials 24,413 97.65 AUD 3.9% 6.70%
25,000 Ford Dec 2024 FCB Senior Debt Sub IG Automotive 24,488 97.95 AUD 3.9% 4.22%

^ Pricing as at 30 September 2020. Subject to change.

Portfolio characteristics

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 17 securities with weightings between 5.4% and 6.6%, yielding 5.95% 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 ~$500,000 investment. $250,000 is the minimum amount that can be invested with FIIG.

Receive a PDF version of the sample portfolios Download the PDF
Bond types
Security types
Ratings
Sectors

* The ANZ and WBC securities are pre-Basel 3 legacy subordinated bonds, and are perpetual (have no maturity). They cease to contribute to the bank’s regulatory capital from January 2022 and as such may be called after that date. If this occurs at par (100) then the yield to the call is significantly higher than the yield shown in the portfolio which assumes no call.

What makes up the portfolio
 
Holding Security Description Maturity / Call Date Product Type Structure Ratings Industry Sector Capital Value Capital price Currency % allocation Yield
30,000 Plenary Bond Finance Unit Trust May 2024 FCB Senior Debt NR Infrastructure 31,830 106.10 AUD 6.1% 4.55%
30,000 Maurice Blackburn Aug 2022 FCB Senior Debt NR Other Corporate 31,275 104.25 AUD 6.0% 5.10%
30,000 StockCo Oct 2021 FCB SubDebt NR Other Financials 30,975 103.25 AUD 5.9% 5.44%
30,000 Centuria Apr 2021 FCB Senior Debt NR Property 30,585 101.95 AUD 5.9% 3.40%
30,000 Omni Bridgeway Limited Jan 2026 FCB Senior Debt NR Other Financials 30,240 100.80 AUD 5.8% 5.47%
30,000 SCT Logistics Jun 2024 FCB Senior Debt NR Other Corporate 29,820 99.40 AUD 5.7% 6.68%
30,000 ZipMoney May 2021 FRN SubDebt NR Other Financials 29,970 99.90 AUD 5.7% 6.28%
30,000 Moneytech Apr 2022 FRN SubDebt NR Other Financials 30,000 100.00 AUD 5.7% 6.35%
30,000 WorkPac July 2022 FRN SubDebt NR Other Financials 29,295 97.65 AUD 5.6% 6.70%
30,000 Elanor Oct 2022 FCB Senior Debt NR Property 29,655 98.85 AUD 5.7% 7.72%
30,000 Sunland Oct 2024 FCB Senior Debt NR Property 28,335 94.45 AUD 5.4% 7.80%
30,000 Ford Dec 2024 FCB Senior Debt Sub IG Automotive 29,385 97.95 AUD 5.6% 4.22%
30,000 Westpac Banking Corporation Perpetual FRN Tier 2 IG Major Bank 32,076 76.65 USD 6.1% 1.85%
30,000 ANZ Bank Perpetual FRN Tier 2 IG Major Bank 31,866 76.15 USD 6.1% 1.87%
25,000 Rockpoint Mar 2023 FCB Senior Debt Sub IG Infrastructure 33,547 96.20 USD 6.4% 8.72%
25,000 Hunt Feb 2026 FCB Senior Debt Sub IG Property 34,524 99.00 USD 6.6% 6.47%
25,000 Geo Group Apr 2023 FCB Senior Debt Sub IG Other Corporate 29,014 83.20 USD 5.6% 13.24%

^ Pricing as at 30 September 2020. Subject to change.

Portfolio characteristics

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.

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* 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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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.

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Please be aware that Corporate Bonds have a greater risk of loss of some or all of your capital when compared to bank deposits.