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Australian Charity Case Studies

Australian charity short on staff and investment expertise seeks Money Market assistance

A registered Australian charity receiving erratically paced donor inflow each year is experiencing difficulty implementing timely and effective cash investment.  Intermittent donor bequests are difficult to manage as they do not easily integrate into their existing cash investments.  The charity’s treasury is managed by staff and volunteers who don’t have the specialist skill set to initiate and manage multiple bank relationships.  Timely Term Deposit rate discovery across multiple banks is too time-consuming and they therefore rely on a small range of primary “big four”  relationships.

If the charity utilises FIIG’s Money Market Services they would be able to achieve competitive price discovery on Australia’s largest range of banks and FIIG’s research specialists would on occasion be able to negotiate special rates on the charity’s behalf.  Once invested the charity would receive consolidated reporting and improved yield as well as enjoying best-practice AML & regulatory standards.

 

Meeting yield requirements without compromising ESG  

A registered Australian Charity focused on habitat preservation is seeking to generate income in addition to donor capital.  The charity holds a reserve of cash that is intermittently invested in term deposits.  The investment policy is subject to a very specific ESG screening and will not invest in any enterprise linked to threatened biodiversity or habitat destruction.

Using FIIG’s Direct Bond Service the treasurer can select individual investments in line with the charities’s ESG policy that deliver a meaningfully increased yield compared to their at-call and Term Deposit investments in bonds that sit within acceptable risk limits.

 

De-risking a portfolio and maintaining yield 

An Australian Charity with increasing service demand is seeking additional yield on retained donor capital and has reluctantly resorted to equities investment.  The board of the charity is uncomfortable with the risk profile of the investment strategy and has ordered a review to focus on lower risk assets but is keen to ensure the investments continue to be held in the charity’s name.

 The Charity could invest in the MIPS Income Plus program to achieve equity like returns with a significant reduction in risk.  Further, the charity would be substantially more diversified and has the potential to reduce transaction costs significantly.  The charity would remain the direct owner of all invested assets.

 

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  

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