FIIG - The Fixed Income Experts

Financial Institutions Case Studies

Global cash investment made to measure

An Australian domiciled managed fund needs to quickly diversify its concentration of deposits with too few international counterparties following the failure of two overseas banks. They need to adjust their mix in line with their global fund investment mandate to provide a currency hedge, they are particularly keen to introduce new Asian Banks. In line with their fund’s investment mandate they are obliged to minimise risk and seek high credit rating and to be able to service redemptions with an agile liquidity management solution blending maturing deposits and cash at-call.

The fund could cost effectively actively manage investment across a far wider range of Asian ADI’s leveraging FIIG’s substantial Money Market Services rate negotiation skillset. The fund would receive secure and investment policy compliant exposure to a greater universe of opportunity with a time and cost savings for the fund manager. The fund manager could also build a more closely managed liquidity pool to maintain an 8.5% pool of cash at-call with a further 5% in higher yielding rolling Term Deposits.

 

Portfolio rebalancing with investment control

An Australian Fund Manager with an Australian Growth Fund is seeking to rebalance their portfolio and invest in Australian bonds. The fund manager has in-house investment expertise so their main requirement is cost effective access to the Australian bond markets and control of individual bonds to ensure their corporate bond holdings satisfy their Australian Growth investment mandate.

The fund manager can use FIIG’s Direct Bond Service to obtain access to individual Australian Bonds in line with their investment mandate. The transactional based costs are minimised so the fund incurs lower expenses and can therefore return higher performance to their unitholders.

Meeting asset allocation and diversification targets 

An Australian insurer is seeking to diversify their invested surplus capital and has a preference for direct ownership of assets. They have broken their surplus into parcels and are seeking to invest with a variety of suitably credentialed institutions. Further, this insurer has an extremely conservative investment mandate and requires a made to measure managed investment portfolio to cover shortfalls in asset allocation from other providers.

This insurer could use FIIG’s Managed Income Portfolio Service to create a bespoke ultra-conservative investment program to ensure that their asset allocation remains compliant with their Investment Policy. The insurer would retain direct ownership of the assets and have 24/7 oversight of investment activity from MIPs dedicated online reporting portal.

FIIG’s Corporate Case studies are illustrative examples of how FIIG clients can benefit from our products and services.  Any resemblance to any actual FIIG client is unintended.  Please be aware that Corporate Bonds have a greater risk of loss of some or all of your capital when compared to bank deposits.

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Mark Connors - State Manager Bianca Burt - Associate Director, Money Market Sales d.bruce Marcus Blake - Director - Distribution, Managed Portfolios  

Phone Call us on 1800 01 01 82

...with offices based in Sydney, Brisbane, Melbourne and Perth


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